Sinomedia Holding Ltd. · HKEX:623
Sinomedia — H1 2011 Earnings Presentation
27 slides from Sinomedia's earnings presentation, Aug 25, 2011
Slide 1: SinoMedia Holding Limited 2011 Interim Results
SinoMedia Holding Limited Stock code: 623 2011 Interim Results 25 August 2011 1
Slide 2: Confidentiality & Disclaimer
Confidentiality & Disclaimer This presentation and the accompanying slides (the “Presentation”) which have been prepared by SinoMedia Holding Limited (“SinoMedia” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis f
Slide 3: Agenda
Agenda Overview 4 Business Review 6 Financial Review 13 Outlook 23 3
Slide 4: Overview
CTV ome FA 45 HS El PR SRE A BR ZS SinoMedia Holding Limited Overview
Slide 5: Key Highlights
Key Highlights Achieved above industry growth rate with revenue and profit attributable 1 to equity shareholdersof the Company up 20% and 180% yoy respectively Maintained solid balance sheet and strong cash position of approx. 2 RMB776 million as at 30 June 2011 Strategically develop four core busin
Slide 6: Business Review
CIVem=Zi FA He Se HS PR HRS A BR 2S] SinoMedia Holding Limited Business Review
Slide 7: Business Modules
Business Modules Media New Media Resources Investment & Management Integration SinoMedia Brand Creative Communication Advertisement & & Media Content Procurement Production Services 7
Slide 8: 1. Media Resources Management
1. Media Resources Management Underwritten Clients Media Resources Creative Multinational Domestic Creative advertising ideas Companies Companies Advertisement design & production Communication Innovative media campaign strategy Efficient execution Marketing CCTV Local TV Mobile TV Inte
Slide 9: 1. Media Resources Management (cont’d)
1. Media Resources Management (cont’d) Continuing Media Resources New CCTV Resources in 2011 CCTV-1 CCTV-4 CCTV-7 CCTV- CCTV-2 CCTV-4 CCTV-5 (General) (Chinese (Military and (Finance) (Chinese (Sports) International, Agriculture) NEWS International, including Europe (English News) including Europe a
Slide 10: 2. New Media Investment & Integration
2. New Media Investment & Integration www.lotour.com Established a joint venture for the exclusive operation of www.lotour.com, the largest Internet portal for travel industry in China Enhance the Group’s resources advantages in city-oriented tourism Strengthen the Group’s foundation to offer
Slide 11: 3. Creative Advertisement & Content Production
3. Creative Advertisement & Content Production Creative Production Services for Commercial Advertising Possess extensive experience in project planning, brand creativity, visual design and filming of advertisements Won several prestigious awards both domestically and internationally Experience
Slide 12: 4. Brand Communication & Media Procurement Services
4. Brand Communication & Media Procurement Services Developed a comprehensive advertising procurement system includes brand positioning, media strategy and procurement execution, and achieved significant growth First domestic company to strategically expand into the international media domain:
Slide 13: Financial Review
CIVenein pA St RS AA PRA) SinoMedia Holding Limited Financial Review
Slide 14: Financial Summary
Financial Summary For the six months ended 30 June (RMB '000) 2011 2010 Change Revenue 719,939 599,339 20% Gross profit 152,884 70,443 117% Profit from operations 107,853 34,492 213% Profit attributable to equity shareholders 72,708 26,018 180% of the Company Basic earnings per share (RMB) 0.128 0.0
Slide 15: Sustained Growth Momentum
Sustained Growth Momentum Revenue Gross Profit RMB Million RMB Million 339 1,500 1,373 300 223 224 1,000 766 200 719 152 558 599 127 500 365 100 70 0 0 2007 2008 2009 2010 1H2010 1H2011 2007 2008 2009 2010 1H2010 1H2011 EBIT Profit Attributable to Equity Shareholders of the Company RMB Million RMB M
Slide 16: Media Resources Management - Continuous Improvement
Media Resources Management - Continuous Improvement Revenue from Media Resources CCTV- 1, 2, 4, 5, 7, News Management RMB Million 721.9 585.2 1H2011 1H 2010 Minutes Acquired 20,715 19,341 Minutes Sold 6,364 4,164 1H 2010 1H 2011 16
Slide 17: 1. Media Resources Management (cont’d) CCTV – 1, 2, 4, 5, 7, News
1. Media Resources Management (cont’d) CCTV – 1, 2, 4, 5, 7, News 1H 2010 1H 2011 Revenue Contribution YOY Growth Tourism & City Image; Inviting Business; Convention & +28.7% Exhibition Consumer Goods +56.5% Finance & Insurance +32.0% 17
Slide 18: Other Businesses
Other Businesses 2. Brand Communication & Media 3. Creative Advertisement & Content Procurement Production a. Production for commercial advertising (RMB ‘000) 1H2011 1H 2010 Change Achieved significant increase in contract amounts Turnover * 474,766 285,329 66.4% Revenue decreased from RMB5.102
Slide 19: Effective Cost Control
Effective Cost Control For the six months ended30 June 2011 2010 Total operating expenses as a % of revenue 7.1 7.0 Selling & marketing expenses(RMB’000) 25,186 18,379 As a % of revenue 3.5 3.1 General & administration expenses(RMB’000) 25,959 23,559 As a % of revenue 3.6 3.9 (RMB '000) 2011 2010 Fi
Slide 20: Strong Balance Sheet
Strong Balance Sheet At 30 June At 31 December (RMB '000) 2011 2010 Cash and cash equivalents 776,187 795,791 Trade & bills receivables (net of impairment) 68,165 74,539 Current assets 1,165,135 1,214,899 Total assets 1,306,299 1,284,248 Current liabilities 423,912 410,506 Total liabilities 439,535
Slide 21: Receivables Maintained at Low Level
Receivables Maintained at Low Level At 30 June At 31 December (RMB '000) 2011 2010 Current – 90 days 33,217 67,355 91 – 180 days 21,194 44 181 days – 1 year 4,516 - Trade debtors (net of impairment losses) 58,927 67,399 Turnover days 16 14 Bills receivables 9,238 7,140 21
Slide 22: Healthy Cash Flow
Healthy Cash Flow For the six months ended 30 June (RMB '000) 2011 2010 Net cash from operating activities 126,373 195,398 Net cash used in investing activities (79,250) (719) Net cash used in financing activities (64,013) (14,426) Net increase (decrease) in cash and cash equivalents (16,890) 180,25
Slide 23: Outlook
CIVenein pA St RS AA PRA) SinoMedia Holding Limited Outlook
Slide 24: Strong Growth for Chinese Advertising Market
Strong Growth for Chinese Advertising Market 2008-2011 Quarterly GDP Growth in China (%) Source: National Statistic Bureau Willingness to Increase Advertising Advertising Revenue YOY Growth for Traditional Spending by Advertisers in China Media (incl. TV & Printed Media) 17% 73% 66% 14% 14% 51% 11%
Slide 25: TV Remains as the Main Advertising Medium
TV Remains as the Main Advertising Medium YOY Growth in China as of March 2011 TV Advertisement Growth for 1H 2011 23% Radio 43% 22% Magazines 15% Newspapers 0% Avg: +14% TV 21% 13% Source: Nielsen Company 11% Radio Magazine 2% 2% Newspapers 13% March 2011 State-level Provincial Satelite Provincial
Slide 26: Outlook in 2H 2011
Outlook in 2H 2011 1 Growth momentum of advertising industry remains strong this year 2 Maintain CCTV as our core media resources in the long term Continue to pay particular attention to and put more efforts in digital 3 media industry, especially the mobile internet media Expand and integrate vario
Slide 27: Open Forum
CTV ome FA 45 HS El PR SRE A BR ZS SinoMedia Holding Limited Open Forum