G.h.y Culture & Media Holding Co., Ltd. · SGX:XJB
G.h.y Culture & Media — FY2020 Earnings Presentation
35 slides from G.h.y Culture & Media's earnings presentation, Feb 26, 2021
Slide 1: FY2020 Financial Results
FY2020 Financial Results 26 February 2021
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 Overview of GHY 4 2 Competitive Strengths 9 3 FY2020 Financial Overview 21 4 Business Strategies and Future Plans 26 5 Appendix – Industry Outlook 32 3
Slide 4: Overview of GHY
Section 1 Overview of GHY Li Ronghao "If I Were Young” World Tour - Singapore (19 Oct 2019)
Slide 5: Key milestones since inception
Key milestones since inception Charting a progressive growth trajectory 2020 ▪ Released the following dramas ▪ "The Little Nyonya 小娘惹" on iQIYI and CCTV ▪ "Perfect Village 最美的乡村" on CCTV ▪ “Dance of the Sky Empire 天舞纪” on iQIYI ▪ “Frontliners 最美逆行者” on CCTV 2019 ▪ Completed production of the all 7 f
Slide 6: 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 7: Overview of businesses and revenue models
Overview of businesses and revenue models Diversified business segments across the value chain FY2020 Revenue Businesses Types of revenue models Working Partners / Customers / Artistes Contribution (1) (%) 1. Engaged by the customer for production by the TV Program and Film Group for a fixed fee Pro
Slide 8: Corporate Structure
Corporate Structure G.H.Y Culture & Media Company Holding Co., Ltd. 100% 100% 100% G.Yue Culture and Media G.H.Y Culture & Operational control BJHJHL Media(Singapore) Limited Limited and economic Pte. Ltd. rights over the (Hong Kong) PRC Affiliated Entities through 100% 100% 100% 100% contractual ar
Slide 9: Competitive Strengths
Section 2 Competitive Strengths “The Little Nyonya 小娘惹”
Slide 10: 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 11: 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 in selection of drama and film projects with potentia
Slide 12: Well positioned to capture growth across the value chain
Well positioned to capture growth across the 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 Sc
Slide 13: Overview of the production timeline
Overview of the production timeline Ability to exercise oversight and control with end-to-end production capabilities 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 considera
Slide 14: Project pipeline for TV Program and Film Production business
Project pipeline for TV Program and Film Production business Intend to leverage on business relationships to develop new entertainment content • FY2020 saw the completion and/or release of 6 dramas, 1 online short-form video series and 1 film series of revenue amounting to approximately S$108.5m • D
Slide 15: 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 16: Production team
Production team Including award-winning scriptwriters Guo Jingyu Xiao Ji Xiang Tian / Yeo Saik Pin 魏风华 Wei Fenghua 张弘弢 Zhang Hongtao Han Xiao Tian Producer / Scriptwriter / Scriptwriter Scriptwriter Director, previously Vice Best Screenplay for Best Web Drama President of Mediacorp “The Most Beautif
Slide 17: 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 18: 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 19: 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 20: Growing portfolio of artistes
Growing portfolio of artistes Contribute to the success of concert production business ✓ Secured concert production rights for popular and well- known singer-songwriter Jay Chou in 6 countries(1) PRC(1) Japan (Rights secured by GHY) ✓ Sold-out Jay Chou concerts held in January 2020 at Singapore’s Na
Slide 21: Financial Overview
Section 3 Financial Overview Film series “I Come From Beijing 我来自北京 ”
Slide 22: Revenue breakdown by segments and geography
Revenue breakdown by segments and geography Diversification in earnings with growing contribution from Singapore Revenue Breakdown by Business Segment (S$’ million) 127.1 3.0% Costumes, Props and Make-up Services and Talent Management Services 66.0 11.6% 6.2% Concert Production 1.9% 85.4% TV Program
Slide 23: Sustainable growth with margin improvement
Sustainable growth with margin improvement Charting strong momentum with double-digit growth rates in profitability Gross Profit (S$’ million) & Gross Profit Margin (%) Gross 90.3% 28.5% 43.8% Profit Margin 55.7 18.8 3.1 FP2018 FY2019 FY2020 Profit After Tax (S$’ million) & Return On Equity (%) 100.
Slide 24: Positioned for growth with strong balance sheet
Positioned for growth with strong balance sheet Supported by healthy working capital cycles Net Cash (Used In)/Generated from Operating, Investing and Financing Activities (S$’ million) 78.4 Net cash generated from (used in) operating activities Net cash used in investing activities 17.7 18.1 17.8 N
Slide 25: Proposed final dividends for FY2020
Proposed final dividends for FY2020 Committed to rewarding our shareholders ✓ Board intends to recommend dividends of at least 30% of net profit after tax generated in FY2020(1) and FY2021 ✓ Proposed final dividend of 1.07 Singapore cents per share for FY2020, subject to shareholders’ approval Note:
Slide 26: Business Strategies and Future Plans
Section 4 Business Strategies and Future Plans "Perfect Village 最美的乡村"
Slide 27: Expand international reach and regional presence
Expand international reach and regional presence Penetrating new markets in Southeast Asia, by expanding our foothold from Singapore Avg. Hours Per Week ✓ Singaporeans spend more time 7.6 watching online videos than the 6.9 global average Singapore Global Licensing & Distribution Revenue Overseas di
Slide 28: Diversify pipeline portfolio of entertainment content
Diversify pipeline portfolio of entertainment content Leveraging on technological advances to expand content offerings 646.6m 23.9% 159.6% PRC online video 2015-19 CAGR 2015-19 CAGR users in 2019 for PRC web for short form series videos in PRC Monetisation Opportunities Further strengthen our online
Slide 29: Creating synergies across existing core businesses
Creating synergies across existing core businesses Introduce and produce new entertainment content and products Music artistes we have worked with may produce soundtracks/theme songs for our dramas and films TV Program & Film Production SYNERGIES Musicals/stage plays Concert Talent Music artistes ma
Slide 30: Nurture future talents and bolster local talent
Nurture future talents and bolster local talent Supporting our ambitions to expand our regional footprint Opportunities to collaborate with Supporting SG & PRC initiatives to the Group or to join our nurture local talent pool production teams Participation in Collaboration in Story Lab Ngee Ann Appr
Slide 31: Summary
Summary 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 Sustainable Innovation Strong network of business Growing portfolio of artistes rela
Slide 32: Appendix - Industry Outlook
Section 5 Appendix - Industry outlook “The Little Nyonya 小娘惹”
Slide 33: High internet penetration to capture PRC Drama Series market
High internet penetration to capture PRC Drama Series market Web series market expected to post 11.1% CAGR to hit RMB30.5b in the next 4 years Category Description Channels available Key Drivers Drama series with distribution licenses Both TV channels and PRC Internet Penetration Rate TV series issu
Slide 34: Wider commercialisation opportunities with online video platforms
Wider commercialisation opportunities with online video platforms Fueling higher revenue and budget to invest in premium drama series content TV Channels Implementation of the “One TV Series, Two Satellite TV Channels”(1) policy intensified competition among the TV channels for superior TV series On
Slide 35: Expected gradual recovery in Concert markets
Expected gradual recovery in Concert markets Total box office receipts to hit RMB2.8b and US$2.6b in PRC and SEA by 2024 Industry Value Chain Analysis Key Drivers • PRC concert market is largely driven by a selected pool of popular artistes, such as Jay Chou, Jacky Cheung and Mayday (in terms of num
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