Slide 1: 2011 Annual Results Corporate Presentation
中視金橋國際傳媒控股有限公司 SinoMedia Holding Limited Stock Code：623.HK 2011 Annual Results Corporate Presentation March 2012 1
Slide 2: Confidentiality & Disclaimer
Confidentiality & Disclaimer This presentation incorporates information contained in the annual results announcement (the “Results Announcement”) for the period ended 31 December 2011 of SinoMedia Holding Limited (the “Company”). This presentation should be read in conjunction with the Results Annou
Slide 3: Company Profile
Company Profile A leading media corporation in China that features a fully integrated communication platform of well-rounded media resources The first Chinese “Top 10 CCTV TV media advertising advertising The largest operator listed on privately-owned agencies” for 6 HKEX operator of TV consecutive
Slide 4: Company Representatives
Company Representatives Mr. Chen Xin Ms. Liu Jinlan Mr. Chan Oi Nin, Derek Chairman Chief Executive Officer Chief Financial Officer Our executive director since Our Chief Executive Officer since Our Qualified Accountant and November 2006. He was she founded the Group in 1999. Company Secretary since
Slide 5: Agenda
Agenda 1. Results 3. Financial Highlights Review 2. Business Review 4. Outlook 5
Slide 6: Results Highlights
Sa tie Results Highlights
Slide 7: Results Highlights
Results Highlights Rise in utilization rates of key CCTV advertising time slots 7
Slide 8: Sustained Growth Momentum
Sustained Growth Momentum Revenue Gross Profit RMB Million RMB Million 1,618 1,373 600 501 1,500 500 1,000 766 400 339 558 300 223 224 500 365 200 127 100 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Profit Attributable to EBIT Equity Shareholders of the Company RMB Million RMB Million 352
Slide 9: Business Overview
Business Overview
Slide 10: Business Modules
Business Modules Integrated Media Brand Resources Communication Management Services Creative New Media Production of Investment Advertisement & & Content Integration 10
Slide 11: Media Resources Management: Underwrite Media
1. Media Resources Management Multinational Domestic Companies Companies Client Underwrite Media Resources 11
Slide 12: Media Resources Management (con't)
1. Media Resources Management (con’t) Operations continue to expand One of the leading operators for CCTV in terms of the long partnership, the abundance of underwriting resources, the form of cooperation and the scale of operations; awarded as a “CCTV’s Top Ten Advertising Agency” for 6 consecutive
Slide 13: Media Resources on CCTV in 2012
Media Resources on CCTV in 2012 Underwritten media resources on CCTV in 2012 CCTV-1/13 “Night News” and “News 30’” (General) CCTV-4 (Chinese International, “Across the Strait”, “China News Package” “Exposition of Chinese Culture Relics” , “China including Europe and US ) Showbiz” and two time slots
Slide 14: Integrated Brand Communication Services
2. Integrated Brand Communication Services brand positioning, campaign Offers a full range of strategy and media execution services Has developed a comprehensive advertising procurement and execution system, covering TV, the Internet & mobile Internet, radio, print and outdoor media Client Expands i
Slide 15: Integrated Brand Communication Services (con't)
2. Integrated Brand Communication Services(con’t) Significant improvement in service capability and scale of operations In 2011, the Group has enhanced its promotion efforts and increased resources allocation to media strategy, campaign planning and creative production of content, thereby expanding
Slide 16: Creative Production of Advertisement & Content
3. Creative Production of Advertisement & Content The solid and extensive execution experience in campaign strategy, brand creativity, visual design and filming of advertisements The national public service advertising broadcast network now comprises 150 regional TV channels Everbright Bank’s Image
Slide 17: New Media Investment & Integration
4. New Media Investment & Integration 2011.8 www.wgool.com WGOOL.COM Aims to become the largest and most the 2011.6 Zhongtoushixun authoritative agricultural website in China 2011.3 100TV New media investment is a critical initiative for the Group to establish a diverse and 2010 www.lotour.com compr
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Slide 19: Financial Summary
Financial Summary For the year ended 31 December (RMB ‘000) 2011 2010 Change Revenue 1,617,800 1,373,173 18% Gross Profit 501,180 339,194 48% Gross Profit Margin 31% 25% 6 pts Profit from operations 352,292 208,979 69% Profit attributable to equity 238,945 158,064 51% shareholders of the Company Net
Slide 20: Media Resources Management - Continuous Improvement
1. Media Resources Management - Continuous Improvement Revenue from Media Resources Management Core CCTV TV Programmes Advertisement Time RMB Million 1,605 For the year ended 31 December 2011 2010 Minutes Acquired 7,755 6,344 Minutes Sold 5,892 4,075 1,378 2010 2010 2011 2011 20
Slide 21: Media Resources Management (cont'd)
1. Media Resources Management (cont’d) CCTV – 1, 2, 4, 5, 7 & News 6% 12% 8% 7% 3% 5% 4% 38% 38% 1% 2010 17% 2011 21% 17% 23% Tourism & City Image; Inviting Business; Convention & Exhibition Health & Medical Consumer Goods Building Materials Automobile Finance & Insurance Others Revenue Contribution
Slide 22: Integrated Brand Communication Services
2. Integrated Brand Communication Services For the year ended 31 December (RMB ‘000) 2011 2010 Change Turnover * 849,943 552,619 54% Revenue * 18,613 9,875 88% (after netting off procurement cost under IFRS) * Before deduction of sales taxes and surcharges Turnover increased substantially YOY as a r
Slide 23: Creative Production of Advertisement and Content
3. Creative Production of Advertisement and Content Revenue for the year ended 31 December (RMB ‘000) 2011 2010 Change Creative production for commercial advertising 27,510 9,493 190% Nationwide public service advertising broadcast 11,745 8,974 31% network a. Creative production for commercial adver
Slide 24: Effective Cost Control
Effective Cost Control For the year ended 31 December 2011 2010 Total operating expenses as a % of revenue 9.7% 9.9% Selling & marketing expenses (RMB’000) 66,778 67,493 As a % of revenue 4.1% 4.9% General & administration expenses (RMB’000) 89,348 68,820 As a % of revenue 5.5% 5.0% For the year end
Slide 25: Strong Balance Sheet
Strong Balance Sheet At 31 December (RMB ‘000) 2011 2010 Cash and cash equivalents 913,179 795,791 Trade & bills receivables (net of impairment) 93,737 74,539 Current assets 1,479,218 1,214,899 Total assets 1,851,158 1,284,248 Current liabilities 811,679 410,506 Total liabilities 825,924 428,204 Net
Slide 26: Receivables Maintained at Low Level
Receivables Maintained at Low Level For the year ended 31 December (RMB ‘000) 2011 2010 Current 63,515 64,783 Less than 6 months past due 10,511 2,616 More than 6 months but less than 12 months past due 784 - Trade debtors (net of impairment losses) 74,810 67,399 Turnover days 16 14 Bills receivable
Slide 27: Healthy Cash Flow
Healthy Cash Flow For the year ended 31 December (RMB ‘000) 2011 2010 Net cash from operating activities 526,983 504,392 Net cash used in investing activities (319,014) (4,981) Net cash used in financing activities (84,912) (25,434) Net increase in cash and cash equivalents 123,057 473,977 Cash and
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Slide 29: Outlook in 2012
Outlook in 2012 China’s advertising industry remains healthy, exceeding the growth pace of Europe and America Maintain CCTV as our core Expand and integrate media resources, while various links of the media expanding into different operations value chain areas of media operations Focus on new media
Slide 30: Outlook in 2012: Agricultural Internet Portal
Outlook in 2012 Assure the operation of the agricultural Internet portal will be stable in 1H 2012 www.wgool.com integrates agricultural information home and abroad reports hit topics and policies on ‘three agricultural issues’ from a timely, objective and accurate angle provides users with com
Slide 31: Outlook in 2012: DTV Platform and Omni-media
Outlook in 2012 Start the investment on DTV platform during the year, bracing for future DTV market expansion in line with the Tri-networks Integration Consolidate the omni-media platform “Television + the Internet of + Mobile terminals” 31
Slide 32: Stable Growth for Advertising Market in China
Stable Growth for Advertising Market in China 2008-2011 Quarterly GDP Growth in China (%) 10.2 10.7 11.9 11.1 10.6 10.3 9.7 9.5 9.0 7.9 8.9 9.1 8.9 6.8 6.1 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 Source: National Statist
Slide 33: TV Remains the Main Advertising Medium
TV Remains the Main Advertising Medium Year-on-year growth in ad spending Outdoor 6.0% Radio 28% Magazines 14.0% Newspapers 11.0% Willingness to spend on different media 2012 TV 13.0% TV Source: CTR AdEx Power Internet Terminal promotion Outdoor PR activity Yes Newspaper Maybe Magazine No Outdoor ne
Slide 34: Q&A Time
Q&A Time 34
Slide 35: Thank You
Thank You 35