Media Chinese International Ltd · HKEX:685
Media Chinese International — Shareholder Meeting (August 2016)
56 slides from Media Chinese International's shareholder meeting presentation, Aug 12, 2016
Slide 1: Media Chinese International Limited Annual General Meeting
Media Chinese International Limited Annual General Meeting 12th August 2016
Slide 2: Agenda
Agenda (1) Overview (2) Performance Review • Market Highlights • Financial Performance (3) Strategic Update (4) World Media Trends (5) Outlook (6) 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 ● Websites MP Daily News (HK) Toronto Ming Pao China Press ● Mobile Applications Yazhou Zhoukan Vancouver Ming Pao Guang Ming Daily ● Pocketimes Over 10 ma
Slide 5: Publishing – Daily Newspapers, Free Newspapers and magazines
Publishing – 5 Daily Newspapers in 11 editions, 3 Free Newspapers and over 30 magazines New! 4
Slide 6: Digital/New Media
Digital/New Media – 5 e-Papers, 19 e-Magazines, over 40 websites & numerous mobile services Online Media (Southeast Asia) Online Media (Hong Kong) Mobile Media Online Media (Mainland China) Online Media (Canada) 5 5
Slide 7: (2) Performance Review – Market Highlights
Agenda (2) Performance Review • Market Highlights 6
Slide 8: Market Share in Malaysia and Hong Kong
Market Share in Malaysia and Hong Kong Peninsular Malaysia Period from 1 Jan 2015 to 31 Dec 2015 Chinese Newspapers Readership Ranking in Malaysia Sin Chew - Sin Chew Daily 1,433,000 No. 1 Highest record in history - Guang Ming Daily 277,000 No. 3 Nanyang - China Press 933,000 No. 2 - Nanyang Siang
Slide 9: Adex for Apr 2015 to Mar 2016 in Malaysia
Adex for Apr 2015 to Mar 2016 in Malaysia YTD Adex (Apr’15 to Mar’16) Total Adex (RM) Newspapers : 4,034m Cinema In-store media Magazines : 125m -11.6% Radio 2.5% 1.0% 2.6% TV (FTA) : 2,827m TV (FTA) Radio (excl. Astro Radio) : 194m Magazines 1.7% 38.0% In-store media : 187m -8.2% Cinema : 72m Newsp
Slide 10: Total Newspapers Adex in Malaysia
Total Newspapers Adex in Malaysia -13.6% -9.3% -12.2% 2,000 In RM 'million 1,500 -1.8% 1,000 500 0 Chinese English Malay Tamil Apr'15 - Mar'16 Apr'14 - Mar'15 Chinese English Malay Tamil Total Apr'15 - Mar'16 1,166.2 1,711.2 1,134.6 22.2 4,034.2 Apr'14 - Mar'15 1,286.3 1,981.7 1,291.7 22.6 4,582.3 S
Slide 11: Share of Chinese Newspapers Advertising Expenditure in Malaysia
Share Of Chinese Newspapers Advertising Expenditure In Malaysia For Apr-15 to Mar-16 NEWSPAPERS ADEX Others West Malaysia 2.8% ENG Newspapers 42.4% CHN Newspapers MCIL Group 28.9% 21.0% Others East Malaysia 5.1% Tamil Newspapers BM Newspapers 0.6% 28.1% Adex for Total Newspapers : RM 4,034 million C
Slide 12: Adex for Apr 2015 to Mar 2016 in Hong Kong
Adex for Apr 2015 to Mar 2016 in Hong Kong Adex (Apr 2015 to Mar 2016) Total Adex (HKD) Newspapers : 35,232m Magazines : 10,929m - 5.3% Interactive 13% Others 13% TV : 33,632m Radio TV 4% 29% Radio : 4,242m Magazines Interactive : 14,447m +0.1% 10% Others : 14,862m Newspapers 31% Newspapers -0.3% Ma
Slide 13: (2) Performance Review – Financial Performance
Agenda (2) Performance Review • Financial Performance 12
Slide 14: Group Results Summary
Group Results Summary For the year ended 31 March (US$’ 000) 2016 2015 Turnover 349,126 429,140 Profit before income tax 37,395 47,501 Profit attributable to owners of the Company for the year 26,649 31,429 EBITDA 50,228 63,493 EBITDA Margin (%) 14.4% 14.8% 13
Slide 15: Financial Position
Financial Position As at 31 March (US$ ‘000) 2016 2015 Total assets 402,940 422,816 Net assets 218,727 216,105 Cash and cash equivalents 140,950 118,620 Shareholders funds 213,024 209,744 Net assets per share (US cents) 12.63 12.43 Basic earnings per share (US cents) 1.58 1.86 Net gearing ratio Nil
Slide 16: Segment Results
Segment Results For the year ended 31 March 2016 (US$ ‘000) Malaysia & Hong Kong, Publishing North other SEA Taiwan & & Printing Travel Total America countries PRC Sub-total Turnover 186,387 60,848 19,186 266,421 82,705 349,126 Segment 39,619 (1,821) (996) 36,802 6,250 43,052 profit/(loss) before in
Slide 17: Dividends
Dividends FY FY 2016 2015 First Interim Dividend (US cents) 0.500 0.430 Second Interim Dividend (US cents) 0.600 0.500 Total Dividend (US cents) 1.100 0.930 Dividend Pay-out Ratio (as a % of PATAMI) 70% 50% Share Price as at 31 March RM0.72 RM0.68 Dividend Yield as at 31 March 6.00% 5.07% 16
Slide 18: (3) Strategic Update
Agenda (3) Strategic Update 17
Slide 19: Strategic Update – Malaysia: Strengthening digital media platforms
Strategic Update – Malaysia Strengthening digital media platforms (1) E-papers • Partner with key retailers for comprehensive e-paper distribution network throughout Malaysia. • Achieved more than 100,000 e-subscriptions since the launch in 2014. • Organise various events and roadshows to reach onli
Slide 20: Strategic Update – Malaysia: Pocketimes online video portal
Strategic Update – Malaysia (cont’d) Strengthening digital media platforms (2) Pocketimes online video portal • Providing short video clips of breaking news, business & sports, etc. • Providing live interactive talk shows on major events. • New version of upgraded Pocketimes with new entertainment &
Slide 21: Strategic Update – Malaysia: Growing e-commerce platform
Strategic Update – Malaysia (cont’d) Growing e-commerce platform (3) Web portals • Revamping web portals to be more interactive & mobile friendly. • Enhancing user experience and expanding mobile reach & social media presence. • Monetization through the sales of the Group’s Consumer Preference Targe
Slide 22: Strategic Update – Malaysia: Growing Facebook platform
Strategic Update – Malaysia (cont’d) Growing Facebook platform (5) As of June 2016, Malaysian Operations achieved 4.67 million fans through 60 Facebook accounts managed by the Group. We are leveraging the power of content and social media marketing as another tool to elevate our audience and custome
Slide 23: Strategic Update – Malaysia: Diversifying to non-media business
Strategic Update – Malaysia (cont’d) Diversifying to non-media business (6) Exploring new investment opportunities including: • education • properties development • others – Big Data marketing, etc. 22
Slide 24: Strategic Update – Hong Kong: New Websites/Apps
Strategic Update – Hong Kong 1) New Websites/Apps HEALTH JOB THAT CARE www.healthcareersasia.com • Easy navigation & editable • Focus on Health Sector in Asia • Fully responsive • Regional Exposure • Multi-device platform • Aggregate Health Event • Social media integration 23
Slide 25: Strategic Update – Hong Kong: New Websites/Apps (cont'd)
Strategic Update – Hong Kong (cont’d) 1) New Websites/Apps • PEOPLE . ENGAGE . REVENUE • www.indievent.net To be one of leading Hong Kong event directory website. • Promote & Post events • List events by sector or by event category • Search event by date/location and export its to Outlook, Google Ca
Slide 26: Digital Performance (Ming Pao Daily News)
Strategic Update – Hong Kong (cont’d) 2) Digital Performance (Ming Pao Daily News) Online readership (2015 vs 2014) +74% (Source: Nielsen Media Index 2015 Year-end Report) Facebook page for mingpao.com instant news (Jul 2016) reached 260,065 fans for mingpao.com instant news and all together 15 face
Slide 27: Digital Performance (Ming Pao Daily News) – Pageviews
Strategic Update – Hong Kong (cont’d) 2) Digital Performance (Ming Pao Daily News) Pageview (Jan - Jun 2016 vs Jan - Jun 2015) +14% for mingpao.com as a whole including news, lifestyle and finance & self enhancement channels, amongst them followings are key engines for growth +33% for news mobile
Slide 28: (4) World Media Trends
Agenda (4) World Media Trends 27
Slide 29: Global newspaper reach 2015
Global newspaper reach 2015 2./bn 40% of all adults read print newspapers 1.3bn more than 40% of all Internet users read newspapers in digital formats Source: WPT Analysis, Ipsos, comScore rere rere 28
Slide 30: Internet, social media and mobile users
TOTAL INTERNET ACTIVE SOCIAL UNIQUE ACTIVE MOBILE POPULATION USERS MEDIA USERS MOBILE USERS SOCIAL USERS 7.395 3.419 2.307 3.790 1.968 BILLION BILLION BILLION BILLION BILLION URBANISATION PENETRATION PENETRATION PENETRATION PENETRATION 54% 46% 31% 51% 27%
Slide 31: Total mobile news time spent (app vs. browser)
Total mobile news time spent (app vs. browser) App usage 2Hrs 4 Mins/Month/Person Source: Knight Foundation/Nielsen Study 30
Slide 32: Video fueling strong mobile data growth
Video fueling strong mobile data growth 24,314 2014 2015 2016 2017 2018 2019 Web/data File Sharing Video Audio streaming Source: Cisco, VNI Mobile 2015 31
Slide 33: (5) Outlook
Agenda (5) Outlook 32
Slide 34: Outlook Statement FY 2017
Outlook Statement FY 2017 The Group navigated through a progressively more challenging business environment during the year under review, and the Board expects another tough year ahead in 2016/2017 in light of the ongoing economic uncertainties and currency volatility. The Board remains cautious on
Slide 35: Outlook Statement FY 2017 (cont'd)
Outlook Statement FY 2017 (cont’d) Although newsprint prices are likely to remain stable for the next financial year, any further appreciation of US dollar against RM and CAD would negatively affect the Group’s overall performance. The Group’s travel business is expected to continue to face difficul
Slide 36: (6) Questions from Minority Shareholder Watchdog Group
Agenda (6) Questions from Minority Shareholder Watchdog Group 35
Slide 37: Question (i): Development of online portals
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1 (i): Please enlighten shareholders regarding the development of the Group’s online portals: (i) What is the current update, outlook and future development for the online portals that supports the Group’s digi
Slide 38: Answer (i): Online portals
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (i): As a prominent media marketer, MCIL has been continuously developing and enhancing its multiple online portals, revamping websites and developing mobile Apps throughout the year. The web portals, news webs
Slide 39: Answer (i): Strengthening digital assets
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (i): Moving forward, the Group will continue to focus in strengthening its digital assets. The Group will invest and implement various strategies to expand the footprint and market share of our portfolio, both
Slide 40: Question (ii): Website traffic in FYE 2016
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1 (ii): Please enlighten shareholders regarding the development of the Group’s online portals: (ii) What was the traffic for the Group’s websites in FYE 2016? 39
Slide 41: Answer (ii): Unique visitors
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (ii): Unique visitors based on Google Analytics: March 2016 June 2016 1 Sinchew.com.my 3.56 m 3.69 m 2 Chinapress.com.my 3.05 m 3.11 m 3 Guangming.com.my 1.14 m 713 k 4 Pocketimes.com.my 552 k 541 k 5 eNanyang
Slide 42: Answer (ii): Page views per month
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (ii): Page view per month based on Google Analytic: March 2016 June 2016 1 Sinchew.com.my 21.53 m 19.64 m 2 Chinapress.com.my 16.33 m 20.10 m 3 Guangming.com.my 3.97 m 2.76 m 4 Pocketimes.com.my 1.27 m 1.20 m 5
Slide 43: Answer (ii): Pocketimes video views
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (ii): From Youtube: Pocketimes video view March 2016 June 2016 1 Pocketimes 2.25 m 2.49 m 42
Slide 44: Question (iii): Traffic growth and income
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1 (iii): Please enlighten shareholders regarding the development of the Group’s online portals: (iii) How the growth of the traffic could have translated into various sources of income for the Group and illustr
Slide 45: Answer (iii): Digital revenue growth
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (iii): The growth in traffic and eyeballs has contributed to the significant increase in digital revenue, e-papers subscription copies as well as readership numbers. Total digital revenue (including e-paper sub
Slide 46: Disposal of One Media Group: use of proceeds
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 2 (i): For the year under review, the Group proposed to dispose 73.01% shareholding in One Media Group Limited for a cash consideration of HK$498.1 million. (i) It was announced that part of the disposal procee
Slide 47: Disposal proceeds and special dividend
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 2 (ii): For the year under review, the Group proposed to dispose 73.01% shareholding in One Media Group Limited for a cash consideration of HK$498.1 million. (ii) Would the Board distribute part of the disposal
Slide 48: Life Magazines: events management and exhibitions plans
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (i): It was stated in the Chairman Statement that “Life Magazines has diversified its revenue stream through growing its digital portfolios and expanding its business in events management and exhibitions”. (i
Slide 49: Answer (i): Life Magazines events
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 3 (i): Life Magazines will continue to plan for the diversification of revenue stream through growing its digital portfolios and expanding businesses in events management and exhibitions. Examples of some success
Slide 50: Events business operating profit margin
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (ii): It was stated in the Chairman Statement that “Life Magazines has diversified its revenue stream through growing its digital portfolios and expanding its business in events management and exhibitions”. (
Slide 51: Events business CAPEX
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (iii): It was stated in the Chairman Statement that “Life Magazines has diversified its revenue stream through growing its digital portfolios and expanding its business in events management and exhibitions”.
Slide 52: Segmental reporting for events business
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (iv): It was stated in the Chairman Statement that “Life Magazines has diversified its revenue stream through growing its digital portfolios and expanding its business in events management and exhibitions”. (
Slide 53: Carbon footprint and newspaper recycling
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 4: Could the Board provide additional information on the management of its carbon footprint, especially in regard to the recycling of old newspapers in order that the shareholders have a better understanding? A
Slide 54: Corporate Governance: Board meeting attendance
Questions from Minority Shareholder Watchdog Group – Corporate Governance Question 1: We noted that Tan Sri Datuk Sir Tiong Hiew King had attended only 2 out of 4 Board meetings in FYE 2016. Please explain. Answer: Due to unavoidable urgent business commitments, our Group Executive Chairman, Tan Sri
Slide 55: Thank You
Thank You 54
Slide 56: 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
Media Chinese International — Shareholder Meeting (August 2016) on 6ix