Media Chinese International Ltd · HKEX:685
Media Chinese International — Shareholder Meeting (August 2015)
50 slides from Media Chinese International's shareholder meeting presentation, Aug 6, 2015
Slide 1: Annual General Meeting 6 August 2015
TGF x MEDIA CHINESE Media. Chinese International Limited Annual General Meeting 6 August 2015
Slide 2: Agenda
Agenda (1) Overview (2) Performance Review • Market Highlights • Financial Performance (3) Strategic Update (4) Outlook (5) Questions from Minority Shareholder Watchdog Group 1
Slide 3: (1) Overview
Agenda (1) Overview 2
Slide 4: Geographic Diversity
Geographic Diversity Media Chinese (Dual Primary Listed) Greater China Southeast Asia North America Digital Media Sin Chew Daily MP Daily News (HK) Toronto Ming Pao ● Websites China Press Yazhou Zhoukan Vancouver Ming Pao ● Mobile Applications Guang Ming Daily Over 10 magazines Tor
Slide 5: Market Leading Brands with Long History
Market Leading Brands with Long History Publishing since In publication for • Nanyang Siang Pau 1923 92 years • Sin Chew Daily 1929 86 years • China Press 1946 69 years • Ming Pao Daily News (Hong Kong Edition) 1959 56 years • Ming Pao Monthly 1966 49 years • Ming Pao Weekly 1968 47 years • Yazhou Z
Slide 6: Publishing – Daily Newspapers, Free Newspapers and magazines
Publishing – 5 Daily Newspapers in 11 editions, 3 Free Newspapers and over 30 magazines New! 5
Slide 7: Digital/New Media – e-Papers, e-Magazines, websites and mobile services
Digital/New Media – 5 e-Papers, 19 e-Magazines, over 40 websites & numerous mobile services Online Media (Southeast Asia) New! Online Media (Hong Kong) Mobile Media Online Media (Mainland China) Online Media (Canada) 66
Slide 8: (2) Performance Review – Market Highlights
Agenda (2) Performance Review • Market Highlights 7
Slide 9: Market Share in Peninsular Malaysia and Hong Kong
Market Share in Peninsular Malaysia and Hong Kong Penisular Malaysia Period from 1 Jan 2014 to 31 Dec 2014 Chinese Newspapers Readership Ranking in Malaysia Sin Chew - Sin Chew Daily 1,197,000 No. 1 - Guang Ming Daily 356,000 No. 3 Nanyang - China Press 1,072,000 No. 2 - Nanyang Siang Pau 88,000 wit
Slide 10: Adex for Apr 2014 to Mar 2015 in Malaysia
Adex for Apr 2014 to Mar 2015 in Malaysia Adex (Apr 2014 to Mar 2015) Total Adex (RM) (based on gross rate card value) Radio Cinema ISM 1.1% NPPS : 4,582m -2.1% 3.2% 0.3% Magz FTA Magazines : 123m 0.9% 22.2% TV (FTA) : 3,168m Pay TV : 5,714m Radio : 462m +5.3% NPPS In-store media : 162m 32.1% Cinema
Slide 11: Total Newspapers Adex in Malaysia
Total Newspapers Adex in Malaysia Apr’14 - Mar’15 Apr’13 - Mar’14 Variance Variance RM’ million RM’ million RM’ million % English 1,981.7 1,951.6 30.1 1.5% Malay 1,291.7 1,393.5 (101.8) -7.3% Chinese 1,285.6 1,306.5 ( 20.9) -1.6% Tamil 22.6 23.4 ( 0.8) -3.3% TOTAL 4,581.6 4,675.0 (93.4) -2.0% Source
Slide 12: Share Of Chinese Newspapers Advertising Expenditure In Malaysia
Share Of Chinese Newspapers Advertising Expenditure In Malaysia from Apr’14 to Mar’15 NEWSPAPERS ADEX Others West Malaysia ENG Npps 2.6% 43.3% CHN Npps MCIL Group 28.0% 20.7% Others East Malaysia 4.7% Tamil Npps BM Npps 0.5% 28.2% Adex for Total Newspapers : RM 4,582 million Chinese Newspapers in We
Slide 13: Adex for Apr 2014 to Mar 2015 in Hong Kong
Adex for Apr 2014 to Mar 2015 in Hong Kong Adex (Apr 2014 to Mar 2015) Total Adex (HKD) Newspapers : 35,350m Magazines : 13,399m - 0.8% Interactive 11% Radio Others TV : 35,062m 13% 4% TV Radio : 4,040m 30% Interactive : 12,638m +10.0% Magazines Others : 15,391m 12% NPPS 31% Newspapers : +1.7% Magaz
Slide 14: (2) Performance Review – Financial Performance
Agenda (2) Performance Review • Financial Performance 13
Slide 15: Group Results Summary
Group Results Summary For the year ended 31 March (US$’ 000) 2015 2014 Turnover 429,140 468,728 Profit before income tax 47,501 68,563 Profit attributable to owners of the Company 31,429 48,236 for the year EBITDA (US$ million) 63.49 86.34 EBITDA Margin (%) 14.8% 18.4% 14
Slide 16: Financial Position
Financial Position As at 31 March (US$ million) 2015 2014 Total assets 422.8 462.8 Net assets 216.1 225.0 Cash and cash equivalents 118.6 102.9 Shareholders funds 209.7 217.8 Net assets per share (US cents) 12.43 12.91 Basic earnings per share (US cents) 1.86 2.86 Net gearing ratio 5.9% 21.9% Return
Slide 17: Segment Results
Segment Results For the year ended 31 March 2015 (US$ ‘000) Malaysia & Publishing Hong Kong North other SEA & Printing Travel Total & PRC America countries Sub-total Turnover 249,961 69,744 23,529 343,234 85,906 429,140 Segment profit 48,374 4,617 297 53,288 3,770 57,058 before income tax For the ye
Slide 18: Dividends
Dividends FY FY 2015 2014 First Interim Dividend (US cents) 0.430 0.750 Second Interim Dividend (US cents) 0.500 0.680 Total Dividend (US cents) 0.930 1.430 Dividend Pay-out Ratio (as a % of PATAMI) 50% 50% ~(excluding special dividend) Share Price as at 31 March RM0.68 RM0.91 Dividend Yield as at 3
Slide 19: (3) Strategic Update
Agenda (3) Strategic Update 18
Slide 20: Strategic Update - Malaysia: Strengthening digital media platforms
Strategic Update - Malaysia Strengthening digital media platforms (1) E-papers • Collaborate with The Star to jointly launch Sin Chew –Star e-paper Package. • Partner with Telco and national enterprises including Sen Heng, KK Supermart, Celcom, 99 Speed Mart, Popular Book store to establish and deve
Slide 21: Strengthening digital media platforms (cont'd)
Strategic Update - Malaysia Strengthening digital media platforms (cont’d) (2) Pocketimes online video portal • Providing short video clips of breaking news, business & sports, etc, through multiple digital channels including web and mobile app. • Expanding more video content covering entertainment
Slide 22: Strategic Update - Malaysia: Growing e-commerce platform
Strategic Update - Malaysia Growing e-commerce platform (4) Logon e-marketplace • Rolled out Logon Version 2.0 to enrich a new e-shopping experience. • Introduced a more competitive pricing to emerge as major market player. • Building up further online audiences by educating SMEs and e-shoppers to t
Slide 23: Diversifying to non-media business
Strategic Update - Malaysia Diversifying to non-media business (5) Actively exploring new investment opportunities including: • e-retail • education • properties development • others – Big Data marketing, etc. 22
Slide 24: Strategic Update – Hong Kong: Education Publications
Strategic Update – Hong Kong 1) Education Publications “Life & Society” 29 booklets Liberal Studies --- printed and e-textbooks “Today Hong Kong” , “Nowadays China”, “Public Hygiene” and “Globalisation” for junior secondary schools printed textbooks for senior secondary schools Done Done 23
Slide 25: Strategic Update – Hong Kong: Digital Performance (Ming Pao Daily News)
Strategic Update – Hong Kong 2) Digital Performance (Ming Pao Daily News) Online readership (2014 vs 2013) +150% (Source: Nielsen Media Index 2014 Year-end Report) Facebook page for mingpao.com instant news (May 2015) reached 217,000 fans (Source: Socialbakers) 2nd most liked Facebook page amongst C
Slide 26: (4) Outlook
res Agenda (4) Outlook 25
Slide 27: Outlook Statement FY 2016
Outlook Statement FY 2016 The Board is expecting another challenging year in 2015/16, given the continued economic uncertainties in the Group’s operating markets as well as the slow pace of recovery of the global economy. We anticipate that the implementation of the GST in April 2015 and the ensurin
Slide 28: (5) Questions from Minority Shareholder Watchdog Group
Agenda (5) Questions from Minority Shareholder Watchdog Group 27
Slide 29: Question 1: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1: The Group had suffered deteriorating financial performance for last two financial years with the latest quarterly report for 31 March 2015 showing a drastic drop in the profit after taxation to RM9.2 million
Slide 30: Answer 1: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1: The significant decrease in the Group's profit after taxation for the 4th quarter ended 31 March 2015 was mainly due to the impairment loss of goodwill and allowance for impairment loss of interest in an assoc
Slide 31: Answer 1 (cont'd)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (cont’d): The newspaper industry has been facing serious challenges ever since the internet made news available online. In Hong Kong, the launch of free newspapers places greater pressure on the paid newspapers
Slide 32: Answer 1 (cont'd)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (cont’d): We have also been investing resources and effort to build our digital capabilities which enable us to disseminate news and information to our readers via multiple platforms including print, websites,
Slide 33: Question 2: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 2: Could the Board share with shareholders their views/thoughts on the developments pertaining to the mass media industry and their potential impact to the Group, for instance, the implementation of GST since 1
Slide 34: Answer 2: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 2: In terms of GST, the good news is that the prices of newspapers sales in Malaysia are zero rated. Although there is still a 6% GST on advertisements, but this tax is being passed on to the advertisers to pay,
Slide 35: Answer 2 (cont'd)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 2 (cont’d): However, with the implementation of GST in Malaysia, we are already experiencing an adverse impact on consumer sentiment. This is showing an effect on the general business environment, thereby leading
Slide 36: Question 3: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3: Subsequent to the impairment of US$4.1 million on the goodwill of Guang-Ming Ribao Sdn. Bhd. incurred in the previous financial year, and yet there was another impairment loss of goodwill and allowance for i
Slide 37: Question 3(i), (ii) & (iii)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3(i), (ii) & (iii): i. Which associate had its goodwill being impaired? What are its plans going forward? ii. When is it expected to turn profitable and are there any serious problems difficult to resolve? iii.
Slide 38: Answer 3(i), (ii) & (iii)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 3 (i), (ii) & (iii): During the FY2015, the Group recognised in the consolidated income statement (i) an allowance for impairment loss of interest in an associate, ByRead Inc. (“ByRead”), held by One Media Group
Slide 39: Answer 3(i), (ii) & (iii) (cont'd)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 3(i), (ii) & (iii) (cont’d): ByRead is engaged in the provision of mobile value-added services such as entertainment and online reading for individuals and enterprises in Mainland China. The performance of ByRead
Slide 40: Answer 3 (cont'd): Guang-Ming Ribao
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 3(i), (ii) & (iii) (cont’d): Guang-Ming Ribao Sdn Bhd (“Guang-Ming”) Despite the impairment of goodwill, Guang Ming had recorded a profit in FY2014/15. Nevertheless, management has implemented and will continue t
Slide 41: Question and Answer 3(iv)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3(iv): Would there be expected impairment losses on any other subsidiaries or associates in FY2016? Answer 3 (iv): Despite the efforts put in place and barring any unforeseen circumstances, we do not intend to
Slide 42: Question 4: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 4: Please brief shareholders on digital business contribution to the Group in terms of revenue and profit after taxation in FY 2015 and moving forward and enlighten shareholders on the future prospect and outlo
Slide 43: Answer 4: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 4: For the FY 2015, revenue from the Group's digital business constituted less than 5% of the Group's total revenue from the publishing segment. Although the monetary contribution is still small relative to that
Slide 44: Answer 4 (cont'd)
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 4 (cont’d): The growth in digital news consumption is inevitable and so are the related advertising and e-commerce opportunities. Many initiatives have been put into place to reach a wider online community, whils
Slide 45: Question 5: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 5: As substantial part of the Group’s business is generated from overseas’ divisions and thus very much affected by foreign exchange rate fluctuations, please elaborate on the extent of the Group’s hedging tran
Slide 46: Answer 5: Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 5: Each of the Group’s operating unit is relatively self-contained and integrated within a particular country. The operating unit’s cash flow is primarily received and paid for in the local currency of that parti
Slide 47: Question 1: Corporate Governance
Questions from Minority Shareholder Watchdog Group – Corporate Governance Question 1: MSWG is promoting certain standards of corporate governance best practices in PLCs. In this regard, we hope the Board could address the following:- Formalise a policy on succession planning taking into consideratio
Slide 48: Answer 1: Corporate Governance
Questions from Minority Shareholder Watchdog Group – Corporate Governance Answer 1: The Board is mindful of the importance of succession planning in relation to the Board’s composition and will deliberate thereof. As for the level of independent directors on the Board, the Board will definitely ensu
Slide 49: Thank you
bes Thank you
Slide 50: Forward Looking Statements
Forward Looking Statements This presentation includes certain forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Media Chinese International Ltd expects or anticipates will or may occur in the future are forward
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