Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — Q4 2016 Earnings Presentation
38 slides from Star Media Group Berhad's earnings presentation, April 2017
Slide 1: The Star Media Group
THE STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired
Slide 2: Disclaimer
DISCLAIMER This presentation and the discussion following may contain forward looking statements by the Star Media Group Berhad (“Company”) related to financial, market or industry trends for future period. Actual future performance, outcomes and results may differ materially from those expressed in
Slide 3: Agenda
Agenda 11 2 3 4 Quarter 4 Quarter 4 Business 2016 2016 Group Segments Outlook Highlights Financials financials 3
Slide 4: 4Q16 MIER 4Q 2016 update
4Q16 MIER 4Q 2016 update Business Conditions Index: BCI4Q2016 Consumer Sentiments Index: CSI4Q2016 STILL IN NEGATIVE TERRITORY SENTIMENTS SHIFT LOWER • BCI drops for the second • CSI falls further to 69.8 points consecutive quarter to 81.2 • Cautious and selective shopping plans points Source MIER w
Slide 5: 4Q16 & FY16 highlights
4Q16 & FY16 highlights Sobering time for the media industry Print revenue being Stellar performance challenged from Cityneon’s IP business Disposal of RedFM and Capital FM Launch of dimsum Encouraging take-up rate 5
Slide 6: YTD Dec '15 / '16; total adex, all media
YTD Dec ’15 / ’16; total adex, all media Medium share (%) YTD Dec 2015 (ex. Pay TV & Astro Radio) YTD Dec 2016 (ex. Pay TV & Astro Radio) Cinema, 1% Cinema, 1% Radio, 3% In-Store Radio, 2% In-Store Magazines, Magazines, Media, 2% Media, 2% 2% 2% FTA Television, 41% Newspapers, FTA 55% Television, 38
Slide 7: YTD Dec '15 / '16; English paper adex
YTD Dec ‘15 / ‘16; English paper adex Total English newspapers Adex, Peninsular Malaysia YTD Dec (%) YTD Dec 2015 YTD Dec 2016 Media 3, 2% Media 4, 3% Media 4, 4% Media 3, 2% Media 2, 6% Media 2, 6% Media 1, 25% Media 1, 23% The Star, 64% The Star, 65% Source: Nielsen AIS. Numbers have not taken int
Slide 8: YTD English newspapers Adex (Pen. M'sia)
YTD English newspapers Adex (Pen. M’sia) 2016 Display Market Share (%) 80% 75.5% 70% 60% 50% 40% 30% 20% 12.8% 9.0% 10% 2.8% 0% The Star Media 1 Media 2 Media 3 Source: Nielsen AIS Star has dominance in the display category 8
Slide 9: Revenue breakdown by segments (%)
Revenue breakdown by segments (%) 120% 0.84% 0.94% 1.04% 1.23% 100% 0.97% 1.07% 1.18% 1.44% 19.40% 23.23% Events & 29.55% Exhibition 80% 33.83% 5.41% segment 5.07% ( % 4.77% 4.53% ) 60% 40% 73.39% 69.69% 63.46% 58.96% 20% 0% 2013 2014 2015 2016 Print & Digital Radio broadcasting Events, Exhibtions,
Slide 10: Maintained high payout
Maintained high payout Dividends Per Share (sen) 20 Total 18 sen Total 18 sen Total 15 sen Total 18 sen Total 18 sen Total 18 sen 18 16 6 6 6 14 3 12 sen 10 8 6 4 2 12 12 12 12 18 18 0 2011 2012 2013 2014 2015 2016 Ordinary Dividends Special Dividends 2011 2012 2013 2014 2015 2016 Media 1 16 sen 13
Slide 11: FY17 key focus areas
FY17 key focus areas Print: Working with our partners to create ads that would really strike a meaningful connection with their target audience Digital: regional content partnerships & increasing users in digital subscriptions Events & Exhibitions: More exhibits for Cityneon: Taiwan, Australia, Chin
Slide 12: TSOL; Dec '15 – Dec '16
TSOL; Dec ‘15 – Dec’ 16 English News Portals Performance Dec’15 - Dec’16 (Combined PC & Mobile) Total Unique Visitors (‘000) 3,500 3,000 2,460 2,500 2,000 2,422 1,500 1,318 1,000 934 500 285 0 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 The Star Online
Slide 13: New member
New member i [>] ! Over 100,000 Apps downloaded dimsum since launch e Google Play Developer Console | * dimsum.my IE PUBLISHED STATISTICS | Total installs by user =| for Nov 6, 2016 - Feb 20, 2017 Ss
Slide 14: Users behaviour
Users behaviour Regions marr §=—(CVICE Breakdown by Conversion 1 Federal Territory of Kuala Lumpur 2. Selangor 3. Penang 4. Johor 5. Sarawak @ mobile devices with full browsers 6. Perak @ tablets with full D hi 7. Sabah $ emographics 5 Malocca © computers by Conversion 100 50 9 8 ‘ 0 0 Undetermin 25
Slide 15: Full functions rolled out
Full functions rolled out Chromecast & Airplay NEW!
Slide 16: Offline viewing and tablet version launched
Offline viewing and tablet version launched
Slide 17: Watching on TV via Chromecast & Airplay
Watching on TV via Chromecast & Airplay
Slide 18: Promotion partners - Telco
NEW dimsum_ ot Digi Broadband™ Digi #FattFattFatt Sale Bring home abundance with non-stop entertainment. Buy a Samsung Smart TV before 28 February 2017 with Digi Broadband™ 100 and enjoy: Promotion partners - Telco Now With rebate i + FREE 2-month subscription on dimsum 1EU dimsum oo Watch CNY Count
Slide 19: Promotion partners - Retail
1Ell dimsum Promotion partners - Retail a . -— : pe Pepsi, Revive, 7 Up
Slide 20: Ground presence
1E1l dimsum Ground presence | sum i! Chingay Parade Johor Bahru
Slide 21: Retail presence
Retail presence Dimsum will be available at Senheng & senQ, Malaysia’s largest electrical retail chain with over 100 stores nation wide from March 2017 onwards
Slide 22: Agenda
Agenda 11 2 3 4 Quarter 4 Quarter 4 Business 2016 2016 Group Segments Outlook Highlights Financials financials 22
Slide 23: Performance of Star Media Group
Performance of Star Media Group 1Q16 2Q16 3Q16 4Q16 12M16 12M15 Var (RM million) Revenue 198.73 266.54 206.50 260.35 932.12 1,019.02 (8.5%) EBITDA 28.99 41.99 28.69 8.36 108.03 183.36 (41.1%) PBT 22.38 58.45 17.86 47.52 146.21 170.07 (14.0)% Extraordinary items - - - 39.97 39.97 - - PBT (excluding 2
Slide 24: Agenda
Agenda 11 2 3 4 Quarter 4 Quarter 4 Business 2016 2016 Group Segments Outlook Highlights Financials financials 24
Slide 25: 4Q16 Business Segments
4Q16 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel • Radio 4. 25
Slide 26: Performance of Star Media Group: Print and Digital Segment
Performance of Star Media Group Print and Digital Segment 1Q16 2Q16 3Q16 4Q16 12M16 12M15 Var. (RM million) Revenue 141.91 143.25 136.11 128.34 549.61 646.70 (15.0%) EBITDA 31.66 25.07 27.99 19.45 104.17 179.23 (41.9%) PBT 27.16 23.02 24.22 16.32 90.72 171.88 (47.2)% EBITDA Margin 22.3% 17.5% 20.6%
Slide 27: Breakdown of revenue 2016
Breakdown of revenue 2016 Advertising, Circulation, 13% 82% Digital, 5% 27
Slide 28: 4Q16 Business Segments
4Q16 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel • Radio 4. 28
Slide 29: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 1Q16 2Q16 3Q16 4Q16 12M16 12M15 Var. (RM million) Revenue 1.19 6.61 1.24 4.63 13.67 23.26 (41.2%) EBITDA/ (1.09) 1.36 (0.43) 1.55 1.39 5.60 (75.2%) (LBITDA) PBT/LBT (1.07) 1.35 (0.49) 1.53 1.32 5.54 (76.2%) EBITDA/ (91.6%) 20.6% (34.7%) 33.5% 10.2% 24.1% - (LBITDA
Slide 30: Performance of Cityneon Holdings Ltd
Performance of Cityneon Holdings Ltd 1Q16 2Q16 3Q16 4Q16 12M16 12M15 Var. (SGD million) Revenue 13.5 32.82 16.69 33.74 96.75 96.49 0.3% EBITDA/ 0.29 6.93 0.50 3.47 11.19 2.23 401.8% (LBITDA) PBT/(LBT) (0.31) 6.03 (0.59) 2.24 7.37 0.79 832.9% EBITDA/ 2.1% 21.1% 3.0% 10.3% 11.6% 2.3% - (LBITDA) Margin
Slide 31: 4Q16 Business Segments
4Q16 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel • Radio 4. 31
Slide 32: Performance of Li TV Holdings Ltd
Performance of Li TV Holdings Ltd 1Q16 2Q16 3Q16 4Q16 12M16 12M15 Var. (USD million) Revenue 0.48 0.61 0.68 1.26 3.03 3.05 (0.7%) (LBITDA) (0.47) (0.58) (0.41) (0.11) (1.57) (1.93) 18.7% (LBT) (0.48) (0.60) (0.42) (0.12) (1.62) (2.02) 19.8% (LBITDA) Margin (97.9%) (95.1%) (60.3%) (8.7%) (51.8%) (63.
Slide 33: 4Q16 Business Segments
4Q16 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel • Radio 4. 33
Slide 34: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 1Q16 2Q16 3Q16 4Q16 12M16 12M15 Var. (RM million) Revenue 10.95 9.94 9.83 11.48 42.20 48.58 (13.1%) (LBITDA)/EBITDA (0.11) (1.58) (1.05) 0.61 (2.13) (0.12) (1675.0%) (LBT)/PBT (0.36) (1.89) (1.27) 1.21 (2.31) (1.04) (122.1%) (excluding impairmen
Slide 35: Agenda
Agenda 11 2 3 4 Quarter 4 Quarter 4 Business 2016 2016 Group Segments Outlook Highlights Financials financials 35
Slide 36: 2017 Outlook
2017 Outlook • Consumer sentiment expected to remain soft. Expect a challenging year but some industry captains expect some gradual improvement 1. in 2H; ASEAN@50, SEA Games, 60th National Day, 9th Asean Para Games & possible GE14 • Cityneon is expected to contribute positively with other 2. exhibit
Slide 37: Download our presentation
Download our presentation http://starmediagroup.my/ or http://starmediagroup.my/investors- relations/presentations/ 37
Slide 38: Thank You
THANK YOU THE STAR MEDIA GROUP 38
Star Media Group Berhad — Q4 2016 Earnings Presentation on 6ix