Cheil Worldwide Inc · KRX:030000
Cheil Worldwide — Cheil Communications — Q1 2003 Earnings Presentation
20 slides from Cheil Worldwide's earnings presentation, Jul 18, 2003
Slide 1: Cheil Communications: To the Global Leading Marketing Firm
Cheil Communications 1200 To the Global Leading 1000 800 Marketing Firm 600 400 200 1973 1975 1980 1985 1990 1995 2002
Slide 2: Notice
Notice This publication is produced and distributed for private circulation by Cheil Communications Inc. All information has been obtained from our internal market expectation and outside sources we believe to be reliable but do not accept legal responsibility for the reliability of this information
Slide 3: Who is Cheil? Q1 2003, Globalization, Future Outlook
9Who is Cheil? 9Cheil on Q1 in 2003 9Globalization on Cheil 9Future Outlook
Slide 4: Who is Cheil?
No. 1 in Korean Market Business Structure Client Portfolio
Slide 5: Leading Advertising Agency in Korea Since 1973
R Leading Advertising Agency in Korea Since 1973 18.7% Year 2002 9 Always No 1 Ad. Agency in Korea · Established in 1973 11.4% · 18 Oversea operations in the world 6.6% · Established Brand Marketing Institute in 1991 5.6% 9 Fast Growing M/S: 5.7% in past 5 years · Market Share : 13% in 1997 18.7% in
Slide 6: Billing Breakdown in 2002 and Billing vs. Revenue Structure
R Billing Breakdown in 2002 9Billing Breakdown Internet Sports Marketing, · Media accounted for 65% of total billing (1%) Sales Promotions (28%) TV · Broadcasting Media: 46% (44%) · Print Media 19% CM Production 9Total Billing in 2002 : 31.4% on YOY (6%) · TV Ad. Rate hike 9.8% Magazine Radio Newspa
Slide 7: Cheil's Partners
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Slide 8: Cheil on Q1 in 2003
- Financial Highlights - Billing Breakdown - Profit Analysis - Achievements on Q1
Slide 9: Q1 2003 Financial Results (Billion KRW)
(Unit: Billion KRW) 2003.Q1 2002.Q1 % Billings 210.8 247.0 -14.6% Revenue 80.9 71.4 13.3% Gross Income 27.9 28.8 -3.0% SG&A 19.1 17.6 9.0% (Employee costs) (12.4) (11.3) (10.5%) Operating Income 8.8 11.2 -21.6% Other income 5.3 4.5 19.5% Other expenses 1.6 1.7 -4.5% Ordinary Income 12.5 14.0 -10.5%
Slide 10: Billing Analysis and Industry Analysis
R Billing Analysis 9 Billing on Q1 : Down by 14.6% on YoY 14.6% (Unit: Billion KRW) 247.0 · Media billing decreased: 23.6% 210.8 · Oversea media billing decreased : 72% (36B) Billing 23.6% 179.7 War in Iraq and SARS effects 137.3 Media 9.2% Oversea ad plans delayed to Q2 Production 73.5 · Production
Slide 11: Ordinary Income/Billing and Cost Analysis
R Ordinary income/Billing Ordinary income/Billing (%) 6.0 9 Ordinary income/Billing : 5.7% 6.0% 5.7 · Oversea marketing shrunk 5.5 4.4 · Profitability of Media improved (10.9% 11.5%) 4.1 · Other income increased * Interest income: (1.9B 2.3B), * Gain on Foreign Currencies: 0.6B Q1 Q2 Q3 4Q Q1 2002 2
Slide 12: Reinforced Client Service and New Accounts
R Reinforced Client Service 9Client Services ·Reinforced R&D center in Brand Marketing Institute Consulting Brand developed strategic models Marketing ·Established BTL planning part Institute R &D enhanced Below The Line marketing service · Developed strategic media models to estimate outcome of mar
Slide 13: Globalization on Cheil
- Global Ad. Network - Expansion Plan in 2003 - To Global Leading Marketing Firm
Slide 14: Building for Global Hub Network
R Building for Global Hub Network Moscow New York Frankfurt Irvine Dallas London Mexico City Paris Kiev (Ukraine) Toronto São Paulo Seoul Tokyo Beijing Shanghai Hong Kong Singapore New Delhi Dubai
Slide 15: Expansion of Global Network
R Expansion of Global Network 9 Plan to establish subsidiaries Toronto · London, Singapore, India New York Irvine · To enhance local marketing services Moscow Dallas Europe, South East Asia, India Frankfurt Mexico London (Panama) 9 Network Expansion: Kiev, Ho Chi Minh Paris Kiev (Ukraine) · Kiev(CIS
Slide 16: New Growth Engine: Oversea Marketing
R New Growth Engine : Oversea Marketing Oversea Billing 470 ~ (Billion KRW) 417.8 9 Dramatic Growth of Oversea Billing 323.8 ·Oversea billing surged up: 187% in 5 years 259.1 ·Missions for future growth 179.7 Reinforcing Global Marketing Services & 145.6 Expanding global networks 1998 1999 2000 2001
Slide 17: Future Outlook
-’03 Korea Ad. Market outlook -Future Outlook in 2003
Slide 18: Client Market Outlook and 2003 Ad Market Outlook
’ R Client Market Outlook 9 IT, Digital Appliances: Strong Ad Spending Strong Weak · IT , Electronics Increased Ad spending (20.2%) Telecom Credit Card · Credit Card (5.5%) down, Retailing, Cosmetic also. Digital Cosmetic Appliances VS 9 Traditional Media on Q1: 3.8% Up YOY Retailing Insurance · TV
Slide 19: New Paradigm on 30th Anniversary and Financial Projection
R New Paradigm on 30th Anniversary Total 9Global Leading Marketing Firm Communications · Retaining leading market position in Korea Growing Firm Global · Enhancing capability of oversea business Period Marketing by recruiting global experts & expending Firm global operations Restructuring Period 9En
Slide 20: Thank you!
“Building A New Leader; Cheil World-Wide.” Thank you!