Media Prima Bhd. · MYX:MEDIA
Media Prima Bhd — Non-Deal Roadshow (July 2010)
45 slides from Media Prima Bhd's roadshow presentation, July 2010
Slide 1: Media Prima Berhad Investors' Roadshow
PRIVATE & CONFIDENTIAL 1 MEDIA PRIMA BERHAD INVESTORS’ ROADSHOW FINANCIAL & BUSINESS REVIEW FOR THE FIRST QUARTER ENDED 31 MARCH 2010 JULY 2010 PRIVATE & CONFIDENTIAL
Slide 2: Table of Content
PRIVATE & CONFIDENTIAL 2 TABLE OF CONTENT SECTION 1 OVERVIEW SECTION 2 PERFORMANCE REVIEW SECTION 3 OUTLOOK & CONCLUSIONS PRIVATE & CONFIDENTIAL
Slide 3: Section 1: Overview
PRIVATE & CONFIDENTIAL 3 SECTION 1 : OVERVIEW PRIVATE & CONFIDENTIAL
Slide 4: Adex and GDP Trends
PRIVATE & CONFIDENTIAL 4 ADEX AND GDP TRENDS Total Total GDP Total ADEX ADEX/GDP TV TV TV ADEX/ New sprint New sprint Print ADEX/ GDP Grow th ADEX Grow th ADEX/GDP Multiple ADEX ADEX Grow th GDP Multiple ADEX ADEX Grow th GDP Multiple Year (RM Mil) % (RM Mil) % % (RM Mil) % (RM Mil) % 1999 192,906 6
Slide 5: Adex by Media – Q1 2010 vs Q1 2009
PRIVATE & CONFIDENTIAL 5 ADEX BY MEDIA – Q1 2010 VS Q1 2009 TV TV 33% 36% N/papers N/papers 53% 56% Radio Radio 5% 5% Outdoor Outdoor 2% Others 2% Others 5% 4% Q1 2010 Q1 2009 RM Million Newspapers TV Radio Outdoor Others Total Q1 2010 852 586 85 29 69 1,621 Q1 2009 731 432 67 25 62 1,316 % Change 1
Slide 6: Media Prima Berhad Today
PRIVATE & CONFIDENTIAL 6 MEDIA PRIMA BERHAD TODAY Television Outdoor Content Events New International Print Media Radio Broadcasting Media Creation Management Media Division 100% 89.6% 100% 90% 100% 100% 100% 100% NETWORK PORTALS 100% 75% 100% 80% 80% FACT SHEET Share capital @ 31/03/10 Group borrow
Slide 7: Section 2: Performance Review
PRIVATE & CONFIDENTIAL 7 SECTION 2 : PERFORMANCE REVIEW PRIVATE & CONFIDENTIAL
Slide 8: Section 2.1: Media Prima Group
PRIVATE & CONFIDENTIAL 8 SECTION 2.1 : MEDIA PRIMA GROUP PRIVATE & CONFIDENTIAL
Slide 9: Consolidated Results Q1 2010
PRIVATE & CONFIDENTIAL 9 CONSOLIDATED RESULTS Q1 2010 R M'000 % Q1 2 0 1 0 Q1 2 0 0 9 CH A N GE R M'000 A B (A -B ) NET REVENUE 323,672 141,177 >100 ROYALTIES (703) (547) (29) NET REVENUE AFTER ROYALTIES 322,969 140,630 >100 DIRECT COSTS (152,295) (65,441) (>100) CON T R I BU T I ON 170,674 75,189 >
Slide 10: Continued Improvement in Financial Performance
PRIVATE & CONFIDENTIAL 10 CONTINUED IMPROVEMENT IN FINANCIAL PERFORMANCE 4-year CAGR about 27.8%) 2003* 2004 2007 2008 2009 (RMm) (RMm) (RMm) (RMm) (RMm) Net revenue 279.26 328.41 691.34 781.29 744.03 EBITDA before EI 77.48 85.94 197.15 208.33 156.15 EI (Excluding NSTP's EI) 162.71 0.00 3.40 (2.87)
Slide 11: Media Prima Group – 3 Year Comparison
PRIVATE & CONFIDENTIAL 11 MEDIA PRIMA GROUP – 3 YEAR COMPARISON RM'000 Q1 2010 Q1 2009 Q1 2008 (A - B) (A - C) A B C % % PAT AMI / (LAT AMI) 4 5 ,5 7 2 (2 3 ,2 3 1 ) 1 7 ,0 6 3 >100 >100 PAT AMI / (LAT AMI) EXCLUDING EI - 2 8 ,0 3 7 (9 ,9 3 1 ) 2 2 ,2 6 1 >100 26 CON T INUING OPERAT IONS PAT AMI / (
Slide 12: Summary of Consolidated Results
PRIVATE & CONFIDENTIAL 12 SUMMARY OF CONSOLIDATED RESULTS (i) REVENUE: Group • Malaysia’s GDP of 10.1% in Q1 2010 vs. -6% in Q1 2009 • New revenues for the Group from newly acquired NSTP- first full consolidation of NSTP’s results • Q1 2010 revenue increased by >100% from Q1 2009 • Excluding NSTP, t
Slide 13: Summary of Consolidated Results
PRIVATE & CONFIDENTIAL 13 SUMMARY OF CONSOLIDATED RESULTS (ii) DIRECT COST: • Direct cost increased by >100% compared to Q1 2009 due to full consolidation of NSTP • Excluding NSTP, there were savings in direct costs by 4%. • Savings mainly due to repeats of highly rated TV contents and deferment of
Slide 14: Summary of Consolidated Results
PRIVATE & CONFIDENTIAL 14 SUMMARY OF CONSOLIDATED RESULTS (vii) EBITDA: EBITDA before EI improved by more than 100% against Q1 2009 even after excluding NSTP EBITDA margin stood at 19%, surpassing Q1 2009 of 5% (viii) SHARE OF ASSOCIATES AND RELATED EXTRAORDINARY ITEM (EI): Share of associates’ loss
Slide 15: MPB Group Results – By Media Group
PRIVATE & CONFIDENTIAL 15 MPB GROUP RESULTS – BY MEDIA GROUP RM'000 Outdoor Corporate Total TVN Radio Media Print Media New Media & Others # Actual NET REVENUE (AFTER ROYALTIES) 2010 126,575 12,261 30,276 144,897 2,267 6,693 322,969 2009 95,985 10,781 22,862 * 1,812 9,190 140,630 Growth % 32 14 32 1
Slide 16: Section 2.2: TV Networks
PRIVATE & CONFIDENTIAL 16 SECTION 2.2 : TV NETWORKS PRIVATE & CONFIDENTIAL
Slide 17: TV Networks Results by Station
PRIVATE & CONFIDENTIAL 17 TV NETWORKS RESULTS BY STATION : Q1 2010 vs Q1 2009 R M'000 T V3 ntv7 8T V T V9 T o ta l NET R EVEN UE (AFT ER R OYALT IES) 2010 77,311 18,960 20,410 9,894 126,575 2009 62,836 11,059 15,871 6,219 95,985 Gro wth % 23 71 29 59 32 EBIT D A / (LBIT D A) BEFOR E EI 2010 26,158 4
Slide 18: TV – 3 Year Comparison
PRIVATE & CONFIDENTIAL 18 TV – 3 YEAR COMPARISON R M ' 00 0 Q1 2 0 10 Q1 2 0 0 9 Q1 2 0 08 A-B A-C A B C % % N ET R EVEN UE (AFTER R OYAL TIES) 1 2 6 ,5 7 5 9 5 ,9 8 5 1 1 6,0 1 0 32 9 EBITDA 3 5 ,7 2 8 1 ,7 3 5 2 6 ,1 6 4 >100 37 PR OFIT BEFOR E TAX (EXCL . EI) 27,678 (6,108) 18,222 >100 52 • As th
Slide 19: TV Viewership Share (FTA & Pay TV)
PRIVATE & CONFIDENTIAL 19 TV VIEWERSHIP SHARE (FTA & PAY TV) Total 4+ Viewers Chinese 4+ Viewers Urban 15 to 34 Viewers Malay 15+ Viewers Station Jan - Mar Jan - Mar Jan - Mar Jan - Mar Jan - Mar Jan - Mar Jan - Mar Jan - Mar 2010 2009 2010 2009 2010 2009 2010 2009 29% 32% 4% 5% 22% 25% 42% 43% 5% 6
Slide 20: Top 10 Channels Watched
PRIVATE & CONFIDENTIAL 20 TOP 10 CHANNELS WATCHED (FTA & PAY TV): Q1 2010 vs Q1 2009 TOTAL 6+ CHINESE 6+ MALAY 15+ STN 2010 STN 2009 STN 2010 STN 2009 STN 2010 STN 2009 1 TV3 28 TV3 32 8TV 20 ntv7 20 TV3 39 TV3 44 2 RTM2 11 RTM2 10 ntv7 19 8TV 18 TV9 10 TV9 11 3 TV9 8 TV9 9 HUAHEE 8 HUAHEE 9 RTM2 14
Slide 21: TV Adex Share by Stations
PRIVATE & CONFIDENTIAL 21 TV ADEX SHARE BY STATIONS RM‘000 TOTAL 2010 NON DISCOUNTED GROSS REVENUE -% 39 18 18 13 89 2 9 100 - RM'000 228,224 108,140 105,928 78,708 521,000 11,459 53,152 585,611 Growth % 27 34 36 62 35 (0) 62 36 DISCOUNT FACTOR -% 58 77 75 84 69 60 * 60 * 68 - RM'000 (131,914) (83,4
Slide 22: Section 2.3: Radio Networks
PRIVATE & CONFIDENTIAL 22 SECTION 2.3 : RADIO NETWORKS PRIVATE & CONFIDENTIAL
Slide 23: Listenership: HOTfm
PRIVATE & CONFIDENTIAL 23 LISTENERSHIP : HOTfm 6000 Era increased by 221,000 listeners since last survey HOT decreased to 3,643,000 SINAR increased to 4,110,000 5000 listeners since last survey listeners since last survey 4000 3000 2000 1000 0 ERA HOT FM HOTFM SINAR SURIA Survey 1/07 Survey 2/07 Sur
Slide 24: Listenership: FLYfm
PRIVATE & CONFIDENTIAL 24 LISTENERSHIP : FLYfm 1600 1400 CLEARLY THE 1200 NO. 2 ENGLISH RADIO STATION IN MALAYSIA 1000 FLY gathered 693,000 listeners 800 600 400 200 0 HITZ FLY FM FLYFM MIX Survey 1/07 Survey 2/07 Survey 1/ 08 Survey 2/ 08 Survey 1/09 Survey 2/09 Survey 1/ 10 Source: Nielsen Radio A
Slide 25: ONEfm – Making Inroads to Lucrative Chinese Market
PRIVATE & CONFIDENTIAL 25 ONEfm – MAKING INROADS TO LUCRATIVE CHINESE MARKET 2500 ACHIEVES MORE THAN 500K 86% LISTENERS SINCE ITS 2000 INCREASE LAUNCH IN JANUARY 2009 1500 1000 ONE FM gathered 514,000 listeners 500 0 MYFM 988 ONE FM ONEFM Survey 2/ 09 Survey 1/ 10 • ONE FM achieved profitability wit
Slide 26: Section 2.4: Outdoor
PRIVATE & CONFIDENTIAL 26 SECTION 2.4 : OUTDOOR PRIVATE & CONFIDENTIAL
Slide 27: Financial Results – Outdoor Division
PRIVATE & CONFIDENTIAL 27 FINANCIAL RESULTS – OUTDOOR DIVISION R M'0 0 0 % F PE 2 0 1 0 F PE 2 0 0 9 CH A NG E A B A -B NE T R E V E NU E 30,276 22,862 32 30,276 22,862 32 DIRECT COSTS (15,518) (11,828) (31) CONTR I B U TI ON 14,758 11,034 34 OTHER INCOME 142 297 (52) OVERHEADS (4,067) (2,913) (40)
Slide 28: Section 2.5: New Media
PRIVATE & CONFIDENTIAL 28 SECTION 2.5 : NEW MEDIA PRIVATE & CONFIDENTIAL
Slide 29: New Media Results
PRIVATE & CONFIDENTIAL 29 NEW MEDIA RESULTS AVG MT H LY U N IQU E AVG MT H LY VIEW OF AVG MT H LY PAGE VIEW S VISIT OR S VID EOS Q1 2010 Q1 2010 Q1 2010 Q1 2009 Q1 2009 Q1 2 0 0 9 Google Google Google Clic k T rac k s Clic k T rac k s Clic k T rac k s Analytic s Analytic s Analytic s 15,844,379 38,5
Slide 30: Section 2.6: Print
PRIVATE & CONFIDENTIAL 30 SECTION 2.6 : PRINT PRIVATE & CONFIDENTIAL
Slide 31: Group Consolidated Results Q1 2010 vs Q1 2009
PRIVATE & CONFIDENTIAL GROUP CONSOLIDATED RESULTS Q1 2010 vs. Q1 2009 31 RM'000 Variance Q1 2010 Q1 2009 % Revenue 144,966 131,659 10 Operating expenses (118,979) (127,710) 7 EBITDA (including other income) 25,987 3,949 >100 Depreciation (11,625) (11,060) (5) Finance Cost (666) (554) (20) Profit bef
Slide 32: Group EBITDA, PBT & PAT for Q1 2010
PRIVATE & CONFIDENTIAL GROUP EBITDA, PBT & PAT FOR Q1 2010 32 30 25 20 15 RMMillion 10 5 0 (5) (10) 1st Qtr 08 1st Qtr 09 1st Qtr 10 EBITDA PBT PAT Q1 2010 EBITDA was higher by RM22 million against Q1 2009 due to higher total revenue by RM13.3 million or 10% and lower operating expenditure by RM8.7
Slide 33: NSTP Group Revenue Contribution
PRIVATE & CONFIDENTIAL NSTP GROUP REVENUE CONTRIBUTION 33 80 73 73 70 70 70 60 50 % 40 30 30 27 27 30 20 10 0 2007 2008 2009 1st Qtr 10 English Malay Malay newspapers will continue to be the main driver to revenue growth. PRIVATE & CONFIDENTIAL
Slide 34: NSTP Advertising Revenue
PRIVATE & CONFIDENTIAL NSTP ADVERTISING REVENUE 34 23% (12%) 8% 4% 10% (4%) 16% 0.2% (.1%) 23% (10%) 10% 90 80 70 60 RM Million 50 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2007 2008 2009 2010 PRIVATE & CONFIDENTIAL
Slide 35: NSTP Circulation Revenue
PRIVATE & CONFIDENTIAL NSTP CIRCULATION REVENUE 35 12% (5%) 13% 2% 6% 6% 2% 2% 5% 3% (0.2%) 1% 80 70 60 50 RM Million 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2007 2008 2009 2010 • Harian Metro is Malaysia’s number one Malay language newspaper with average circulation of 398,000 copies per day
Slide 36: NSTP – Newsprint Price Trend
PRIVATE & CONFIDENTIAL NSTP- NEWSPRINT PRICE TREND 36 1100 942 1000 850 900 729 800 702 701 721 650 632 700 630 600 589 574 565 531 600 625 USD/MT 570 542 546 500 525 495 509 475 466 450 445 400 300 200 100 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2
Slide 37: Section 2.7: Corporate and Other Businesses
PRIVATE & CONFIDENTIAL 37 SECTION 2.7 : CORPORATE AND OTHER BUSINESSES PRIVATE & CONFIDENTIAL
Slide 38: Corporate & Other Businesses
PRIVATE & CONFIDENTIAL 38 CORPORATE & OTHER BUSINESSES RM'000 Consol Total MPB TV3N GB^ Others Adjustment Actual NET REVENUE 2010 - 4,475 4,181 599 (2,562) 6,693 2009 - 4,470 5,699 1,972 (2,951) 9,190 Growth % N/A 0 (27) (70) 13 (27) (LBITDA) / EBITDA BEFORE EI 2010 (4,417) 572 (734) (297) 659 (4,21
Slide 39: Summary of Results: Corporate & Other Businesses
PRIVATE & CONFIDENTIAL 39 SUMMARY OF RESULTS : CORPORATE & OTHER BUSINESSES • Higher professional fees incurred for issuance of bonus warrants and new ESOS • Annual surveillance exercise • Annual report cost incurred in Q1 2010, as compared to Q2 in 2009 • Higher interest charges due to additional t
Slide 40: Section 3: Outlook & Conclusion
PRIVATE & CONFIDENTIAL 40 SECTION 3 : OUTLOOK & CONCLUSION PRIVATE & CONFIDENTIAL
Slide 41: Conclusion
PRIVATE & CONFIDENTIAL 41 CONCLUSION Combination of the continuing improvement in the economic climate and prudent cost management contributed to the improvement in the Group’s results as compared to Q1 2009. Recorded EBITDA (before EI) of RM72.7 million and PATAMI (before EI) of RM28.0 million. TV
Slide 42: Outlook
PRIVATE & CONFIDENTIAL 42 OUTLOOK Committed to maintaining industry leadership position and earnings through continued investment and quality programming and branding. Will continue to exercise prudent financial and risk management and stepping up cost management efforts. Continue efforts in realisi
Slide 43: Proposed De-listing & Exit Offer of NSTP Group
PRIVATE & CONFIDENTIAL 43 PROPOSED DE-LISTING & EXIT OFFER OF NSTP GROUP On 27 April 2010, Media Prima announced that MPB requested NSTP to undertake the proposed De- listing Existing NSTP shares held by MPB - 194,676,650 ordinary shares of RM1.00 each in NSTP (89.62% of NSTP’s issued and paid-up ca
Slide 44: Thank You
PRIVATE & CONFIDENTIAL 44 THANK YOU For information www.mediaprima.com.my Inquiries, Suggestions and Comments investor@mediaprima.com.my PRIVATE & CONFIDENTIAL
Slide 45: Forward-looking statements note
PRIVATE & CONFIDENTIAL 45 Note: The presentation may contain forward-looking statements which are based on MPB's current expectations, forecasts and assumptions based on management's good faith expectations and belief concerning future developments. In some cases forward-looking statements may be id