G.h.y Culture & Media Holding Co., Ltd. · SGX:XJB
G.h.y Culture & Media — FY2021 Earnings Presentation
40 slides from G.h.y Culture & Media's earnings presentation, Mar 1, 2022
Slide 1: FY2021 Financial Results
FY2021 Financial Results 1 March 2022
Slide 2: Disclaimer
Disclaimer This presentation is prepared for information purposes only, without regard to the objectives, financial situation nor needs of any specific person. This presentation does not constitute an offer or solicitation of an offer to sell or invitation to subscribe for any securities nor shall i
Slide 3: Content
Content Sections 1 Financial Review 4 2 Business Strategies and Growth Plans 13 3 Appendix – Financial Statement 24 3 Appendix – Company Overview 26 3
Slide 4: FY2021 Financial Overview
Section 1 FY2021 Financial Overview “Brave Heart 2 勇敢的心”
Slide 5: FY2021 in Review: Reset, Reposition, Rebuild
FY2021 in Review： Reset, Reposition, Rebuild A Year of the Great Reset GHY remains profitable despite the most challenging year due to the COVID-19 pandemic A Year of Repositioning Refine growth strategy with content diversification, expansion of end-to-end capabilities and strategic investments Loo
Slide 6: Strategic investment to support our long-term growth
Strategic investment to support our long-term growth Capturing opportunities amidst market headwinds to strengthen portfolio capabilities The Group continues to invest in content development and its end-to-end production capabilities to expand its portfolio of entertainment content and products. 202
Slide 7: Revenue breakdown by segments
Revenue breakdown by segments Growth interrupted by Covid-19 impact Revenue (S$’ m) Revenue Breakdown by Business Segment (S$’ m) -34.4% -36.9% -30.2% 108.5 127.1 75.7 N.A. 83.3 +100.9% 14.8 3.8 7.6 TV Program and Film Concert Production Costumes, Props and Make- Production up Services and Talent Ma
Slide 8: Profitability impacted by external variables beyond control
Profitability impacted by external variables beyond control Remains profitable despite challenges in Covid-19 environment Gross Profit (S$’ m) GP (S$’ m) and GP Margin (%) by Business Segment 26.9% Gross Profit N/A 23.5% Margin for FY2021 -60.9% 55.7 46.1 21.8 20.4 -0.4 1.7 1.8 7.8 TV Program and Fi
Slide 9: Affected by challenging industry landscape
Affected by challenging industry landscape Affected by the absence of one-off disposal gain and absence of contributions from Concert Production business Net Profit Breakdown (S$’ m) Net Profit YoY (S$’ m) 40.0 -3.2 35.0 30.0 -8.2 +4.7 25.0 -88.8% 20.0 38.1 15.0 31.3 10.0 5.0 3.5 0.0 FY2020 One-time
Slide 10: Strategic investments for the future
Strategic investments for the future Adapting to the new landscape, continuing investment for future growth Net Cash (Used In)/Generated from Operating, Investing and Financing Activities (S$’ m) 78.6 Net cash generated from (used in) operating activities Net cash from (used in) from investing activ
Slide 11: Healthy working capital cycles
Healthy working capital cycles Well-placed to capture organic and inorganic growth opportunities in 2H2022 Working Capital & Cash and Cash Equivalents at end of period (S$’ m) 380.0 150.0 111.9 330.0 100.0 Working Capital 280.0 230.0 38.7 50.0 Cash and Cash Equivalents at end of period 180.0 152.6 1
Slide 12: Capital management strategy
Capital management strategy Strategic growth initiatives to overcome Covid-19 headwinds Growth underway • Investment focus on • creating original and well-received drama and film productions IPO Proceeds (S$) • maximising the synergies of GHY’s unique eco-system to deepen consumers’ connection to th
Slide 13: Business Strategies and Growth Plan
Section 2 Business Strategies and Growth Plan “The Ferryman: Legends of Nanyang 灵魂摆渡之南洋传说”
Slide 14: Forging new frontiers with content innovation
Forging new frontiers with content innovation Leveraging on technological advances to expand content offerings • Expand regional production capacity and distribution capabilities • Strengthen network of business partnerships • Identifying new growth adjacencies while driving synergies across existin
Slide 15: Investing strategically in high value post-production capabilities
Investing strategically in high value post-production capabilities Building 5G content technology hub in Singapore • Evolving viewership preference for engaging, high-definition visual experiences drive strong demand for quality animation and VFX content • Increasing consumption on streaming digital
Slide 16: Forging new frontiers with content innovation
Forging new frontiers with content innovation Successfully expanded content offerings to short-form videos • Strengthened partnerships with both streaming entertainment platforms and linear TV • Affordable paid content to capture younger millennial and Gen Z audience 契约夫妇离婚吧 Ability Bureau Ability B
Slide 17: Diversifying into multi-level entertainment offerings
Diversifying into multi-level entertainment offerings Monetising the proprietary entertainment content and increasing revenue streams • Rollout of musicals to amplify outreach and publicity of our top-quality productions while capturing the pent-up demand for live performances in PRC AUG Completed C
Slide 18: Resumption of Concert Production Business
Resumption of Concert Production Business Partnering more artistes and growing the talent portfolio to support core business PRC Japan Thailand Malaysia Maintains a small team to manage operating costs but has the flexibility and agility to ramp up once concert dates 1Q2023 Singapore are confirmed
Slide 19: Driving synergies across various segments
Driving synergies across various segments Maximising value and positioning for growth across the entertainment value chain • Affirmation of GHY’s strong end-to-end capabilities; • Exclusive collaboration with Chen Minzheng, award-winning costumes and props designer; • Strengthen collaboration opport
Slide 20: Driving synergies across various segments
Driving synergies across various segments Maximising value and positioning for growth across the entertainment value chain • Enhancing growth potential by strengthening GHY’s value-added business segments • Continue to grow our pool of over 60 artistes across the region GHY artistes Singapore PRC Ch
Slide 21: Nurturing future talents and bolster local talent
Nurturing future talents and bolster local talent Supporting our ambitions to expand our regional footprint Identify and promote talent across Southeast Asia • Provide valuable exposure to end-to-end production capabilities and opportunity to learn from industry professionals • Tie-ups with indust
Slide 22: Summary
Summary Building an entertainment ecosystem to be a leading player in Asia Pacific Ability to produce high quality Management bench strength and well-received dramas and with experience and films led by capabilities spanning the whole end-to-end production business value chain capabilities Sustainab
Slide 23: VFX Breakdown Reel
4 a of, “ke > VFX BREAKDOWN REEL»
Slide 24: Appendix: FY2021 Financial Statements
Section 5 Appendix: FY2021 Financial Statements “The Little Nyonya 小娘惹”
Slide 25: Financial Statements (FY2021)
Financial Statements (FY2021) Group For the year ended Change Change 31 December 2021 31 December 2020 Increase / Increase / (Unaudited) (Audited) (Decrease) (Decrease) $’000 $’000 $’000 % Revenue 83,319 127,095 (43,776) (34) Cost of sales (61,564) (71,426) (9,862) (14) Gross profit 21,755 55,669 (3
Slide 26: About GHY
Section 1 About GHY “The Little Nyonya 小娘惹”
Slide 27: Key competitive strengths
Key competitive strengths Differentiating with our value proposition Ability to produce high quality and well-received dramas and films underpinned by end-to-end production capabilities Management bench strength with experience and capabilities spanning the whole business value chain Strong network
Slide 28: Leading player in the media and entertainment industry
Leading player in the media and entertainment industry Growth is supported by increasing internet penetration rates(1) Connecting people through innovative online video and content TV Program and Costumes, Props and Film Production Make-up Services and Concert Production Services Talent Management S
Slide 29: Overview of businesses and revenue models
Overview of businesses and revenue models Diversified business segments across the value chain Businesses Types of revenue models Working Partners / Customers / Artistes TV Program and Film 1. Engaged by the customer for production by the Group for a fixed fee Production 2a. Produced by the Group an
Slide 30: Well-positioned within the drama production value chain
Well-positioned within the drama production value chain Adding strategic value across the film and drama production ecosystem Value Chain of Drama Series Licensing Fee Upstream IP Owner Investor Copyright Licensing We are involved in end-to-end production of TV and web dramas and films Midstream Scr
Slide 31: Growing regional presence
Growing regional presence Establishing our footprint in Singapore and growing into SEA Costumes, Props and TV Program Make-up and Film Concert PRC (1) Services and Japan Production Production(2) Talent Services Management Services Hong Kong SAR, PRC PRC1 Singapore Thailand Malaysia
Slide 32: Management bench strength
Management bench strength Experience and capabilities spanning the Group’s business value chain Guo Jingyu Executive Chairman and Group CEO >25 years of experience as a producer, drama director and scriptwriter Formerly director, producer and scriptwriter with Perfect World Chairman of Youth C
Slide 33: Production team
Production team Including award-winning scriptwriters Guo Jingyu Xiao Ji Xiang Tian / 魏风华 Wei Fenghua 张弘弢 Zhang Hongtao Han Xiao Tian Scriptwriter Scriptwriter Best Screenplay for Best Web Drama “The Most Beautiful Scriptwriter Award at “Horror Stories of Tang Dynasty “Perfect Youth 最美的青春” Youth 最美的
Slide 34: Production team
Production team Including producers involved in notable dramas and films in the PRC 薛鑫 Xue Xin 王冰 Wang Bing Leads the PRC Production Team Producer “Rush Year 刀锋1937” “The Legend of the Condor Heroes “The Red Lady 红娘子” 射雕英雄传（2017版）” “Brave Heart 2 勇敢的心” “Handsome Siblings 绝代双骄 “The Blue Blade 火蓝刀锋” （
Slide 35: Production team
Production team Directors with years of experience in the media and entertainment industry in the PRC 柏杉 Bai Shan Director “The Red Lady 红娘子” “Yangko Dance 大秧歌” “Brave Heart 勇敢的心” “Heroes 大侠霍元甲” 满意 Man Yi / Ju Xing Mao 信鹏 Xin Peng Director Director “The Ferryman 灵魂摆渡” Series “Candle In The Tomb 鬼吹灯”
Slide 36: Track record of commercial success
Track record of commercial success Testament to the high-quality content produced Commercial success of the dramas and films “The Little Nyonya 小娘惹” - Production in Singapore, Malaysia and PRC Ability to identify changes in consumer preferences Broadcasted on leading TV network and video streaming
Slide 37: Control and flexibility with production timelines
Control and flexibility with production timelines Executing a progressive rollout throughout the year for earnings visibility 1 to 2 months 1 to 4 months(1) 1 to 2 months Approx. 3 to 8 months Broadcast and/or Feasibility Study Preparation Work Production Post-Production Distribution • Taking into c
Slide 38: Strong network of business relationships and partnerships
Strong network of business relationships and partnerships Across TV networks, video streaming platforms and other production companies TV Networks and Video Streaming Platforms Production Partners Quality of dramas and films and Management team’s experience enable the Group to establish a strong net
Slide 39: Growing portfolio of artistes
Growing portfolio of artistes Contribute to the success and track record of Concert Production business Secured long-term concert production rights for popular and well-known singer- songwriter Jay Chou in 6 countries(1) Sold-out Jay Chou concerts held in January 2020 at Singapore’s National Sta
Slide 40: Elevating the community that we live in
Elevating the community that we live in Embracing the spirit of sharing and caring while growing our human capital Responding to needs of the society Enriching the industry ecosystem Providing “Real-World” Providing apprenticeship Providing financial assistance experience through and training to ind
G.H.Y Culture & Media Holding — FY2021 Earnings Presentation on 6ix