Pt Mnc Vision Network · IDX:MSKY
Pt Mnc Vision Network — PT MNC Sky Vision — 9M 2014 Earnings Presentation
27 slides from Pt Mnc Vision Network's earnings presentation, 2014
Slide 1: PT MNC Sky Vision Tbk.
Listed and tra the Indonesia Stock Exchange _STOCK CODE: Ms x Okevision top Bukan yang Jain Bioskop Masuk Rumah aa teach
Slide 2: Disclaimer
This presentation is strictly confidential and may not be copied, published, distributed or transmitted. This presentation has been prepared for informational purposes only and is not an offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation form the basis of
Slide 3: e eOee
e eOee Bukan yang lain ‘Bloskop Mask Rumah ven eaeter
Slide 4: Indonesia's pay TV market estimated to reach almost 8 million subscribers by 2023
Indonesia’s pay TV market is estimated to reach almost 8 million subscribers by 2023, equaling to only 17% of TV households 2x the size of 2013 In thousand subscribers 9,000 Subs %Pen/TV-HH 17% 17% 17% 17% 8,000 16% 16% 17% 15% 14% 7,000 12% 11% 12% 6,000 9% 7% 5,000 7% 5% 4,000 3% 3% 2% 2% 7,48
Slide 5: A large and young population
Population (2012) A Young Population : 80% - Below 50yr What are the macro drivers? Millions 3% 1,361 13% 29% A large & young population 1,223 200mn people below age of 50 A rising middle class 244 95 29% Strong economic growth driven 69 29 23 5 26% by domestic consumption 0-14 15-29 30-49 5
Slide 6: Asia Pacific Pay TV subscribers and ARPU (2013)
Asia Pacific’s Pay TV subscribers (2013) Asia Pacific’s Average Pay TV Monthly ARPU (2013) In USD In thousand subs 100 95 32 Satellite Cable 800 80 IPTV 717 63 60 5,955 51 4,580 40 5,245 32 31 3,416 1,060 792 1,572 2,749 19 20 16 11 11 9 - 1,240 786 1,455 1,536 533 6 1,095 829 - 146 235 336 418 10 8
Slide 7: Indonesia has the lowest pay TV penetration in Asia Pacific
Indonesia has the lowest pay TV penetration rate of TV household in the Asia Pacific (2013) 120% 100% 100% 89% 80% 80% 66% 60% 53% 52% 40% 27% 20% 13% 9% 0% Korea Hongkong India Singapore Malaysia China Thailand Philippines Indonesia Indonesia has the highest projected pay TV subscriber growth in th
Slide 8: eS’
eS’
Slide 9: Company Milestones and total subscribers
Total subscribers (in thousands) Company Milestones 3000 Total subscribers in Sep 2014 = 2.53 million July 2012: 2,528 IPO @ Rp 1,520/shr 2500 2011: MPEG-4 rollout 2,300 2000 2009: Launch of Indostar II satellite; migrated subscribers to Galaxy and Venus packages 1500 1,720 2008: Introduced Top TV t
Slide 10: Brands and Strategy
Brands Strategy Launched in 1994 1. Continue to acquire new subscribers and retain existing subscribers Middle & upper-middle class Cities & urban areas 2. Create differentiation through new channels, attractive & 38% market share (#1 in Indonesia) value-for-money packages and value-added se
Slide 11: Private consumption is a key growth driver
Private consumption is a … and continues to increase … while Indonesia’s sovereign risk key growth driver… at a robust pace … have markedly improved 100% 125 125 6.00% 8 8 123 BBB- 7 7 Baa3 75% 121 BB+ 6 6Ba1 119 118 5.50% BB 5 5Ba2 117 50% 115 BB- 4 4Ba3 113 112 B+ 3 3B1 5.00% 111 25% B 2 2B2 109 B
Slide 12: Brand Awareness and Marketing & Brand Awards
Brand Awareness 100% Extensive market research and communications 77% are critical components of MNC Sky Vision’s strategy 74% MNC Sky Vision is a recognized market leader for innovative marketing and branding 70% 1. Source: Prompt Research 2014 69% 47% Marketing & Brand Awards Most Admired Comp
Slide 13: Total Channels: 122, Exclusive Channels: 34
Movies (13) News (11) GE & Variety (30) Oriental (3) HD (5) Kids (9) Sports (6) Religion (2) Toddlers (3) Local FTA (12) Documentary (9) Lifestyle (14) Music (5) Exclusive channel Total Channels: 122 Exclusive Channels: 34 MNC Exclusive: 20 13
Slide 14: Exclusive channels list
NO. CHANNEL NO. CHANNEL 1. Cartoon Network 11. MNC Infotainment 2. Disney Jr. 12. Celestial 3. Disney Channel 13. MNC Entertainment 4. S-One 14. Vision 3 Baby 5. MNC Shop 15. CBeebies 6. MNC Sports 1 16. MNC News 7. Fox Movies Premium 17. NGC Wild 8. AXN 18. MNC Drama 9. MNC Sports 2 19. Cinemax 10.
Slide 15: Top channels by category
No. Kids No. Movies No. International 1. Cartoon Network 1. Fox Movies Premium 1. KBS 2. Disney Jr. 2. Celestial 2. Arirang 3. Disney Channel 3. Cinemax 3. DW-TV A+ No. Entertainment No. Sports No. Lifestyle 1. S-ONE 1. MNC Sports 1 1. MNC Infotainment 2. AXN 2. MNC Sports 2 2. MNC Food & Travel 3.
Slide 16: Dominant Position in Indonesia's Pay TV Industry
Dominant Position in Indonesia’s Pay TV Industry 39.96% CAGR in Subscribers (2007 - Dec 2013) IDV Top TV Oke V 2,528 MNC Sky Vision 74.6% Others 15,6% 2,300 402 MNC Sky Vision 1,720 351 First Media is the market 838 9.8% leader of Pay-TV 1,163 204 774 in Indonesia 804 583 76 604 335 480 173 1175 128
Slide 17: Pay TV Market Share
Pay TV Market Share As of June 2014 Others, 15.6% First Pay TV Market Share Media, End of 2013 9.8% Others , MSKY, 16.6% 74.6% Pay TV Market Share First End of 2012 Media, 9.6% Others , 19.0% MSKY, First 73.8% Media, 10.0% MSKY, 71.0% 17
Slide 18: S-Band DTH Broadcasting Capability
S-Band DTH Broadcasting Capability DTH Transmission Process Holds exclusive license for broadcasting using S- band spectrum Clear reception and resilience to heavy rainstorms that are common in Indonesia C-band or Ku-band used by competitors more susceptible to service outages Complete cover
Slide 19: Why DTH Works in Indonesia
Why DTH Works in Indonesia Pay TV Market Share 2011 2013 2018E DTH is the dominant pay TV platform with 81% market share 19% The only platform providing complete coverage across Indonesia Cable is hampered by infrastructure and geographical challenges 81% DTH Cable TV DTT IPTV IPTV to grow,
Slide 20: Network of Branch Offices Across Indonesia
Network of 100 Branch Offices Across Indonesia 16 new branches added in early 2014 Branch office Sulawesi Majority of new customers are sourced Kalimantan through in-house channels, Papua Sumatera Sumatra Maluku Greater control, lower commissions and Java stringent customer verification Comp
Slide 21: e eOee
e eOee Bukan yang lain ‘Bloskop Mask Rumah ven eaeter
Slide 22: Operational and Financial Snapshot
Largest pay TV operator in Indonesia in terms of subscriber base, with 75% market share1 Established in 1988; provides pay television services through Indovision ,Top TV brands and also Okevision Nationwide coverage using Direct-to-Home (“DTH”) S-band satellite-based network 122 local and in
Slide 23: Total revenue and EBITDA
Total revenue (Rp billions) Revenue Sep 2013 Sep 2014 3,020 2,394 2,436 1,738 1,412 2010 2011 2012 2013 Sep 2014 EBITDA (Rp billions) and EBITDA margin (%) EBITDA EBITDA Margin 1,214 41.9% 41.9% 1,002 919 40.0% 728 522 38.0% 37.0% 2010 2011 2012 2013 Sep 2014 2010 2011 2012 2013 Sep 2014 Source: Com
Slide 24: Leverage and coverage ratios
Total debt / EBITDA1 Net debt2 / EBITDA1 2.74 2.96 2.31 2.35 2.37 2.13 2.14 1.9 1.54 1.19 2010 2011 2012 2013 Sep 2014 2010 2011 2012 2013 Sep 2014 Debt / Total capitalization3 EBITDA1 / Interest 63% 64% 62% 63% 9.01 41% 5.68 5.51 4.81 3.55 2010 2011 2012 2013 Sep 2014 2010 2011 2012 2013 Sep 2014 S
Slide 25: Revenue breakdown Sep 2013 vs Sep 2014
Sep 2014 Sep 2013 JOINING FEE & JOINING FEE & TV AD SALES DSD TV AD SALES DSD 4% 1% 0% COMMERCIAL COMMERCIAL 5% 3% 3% DTH DTH 92% 92% 25
Slide 26: Revenue, EBITDA and net income Sep 2013 vs Sep 2014
IDR Billions Sep-13 Sep-14 % Change Revenue rose by 9% from Rp2,230 billion as of Sep 2013 to Revenues 2,230 2,436 9% become Rp2,436 billion as of Sep 2014, in line with the increase of number of subscribers from 2.1 million subs in Sep 2013 to 2.5 million subs in Sep 2014 Operating Expenses 1,865
Slide 27: Thank You
Thank You GED —olesin top (re) Bukan yang lain ‘ioskop Maru Rumah