Media Prima Bhd. · MYX:MEDIA
Media Prima Bhd — Shareholder Meeting (May 2007)
30 slides from Media Prima Bhd's shareholder meeting presentation, May 18, 2007
Slide 1: Media Prima Berhad Annual General Meeting
PRIVATE & CONFIDENTIAL 1 MEDIA PRIMA BERHAD ANNUAL GENERAL MEETING FINANCIAL & BUSINESS REVIEW For the Financial Year Ended 31 December 2006 18 May 2007
Slide 2: Contents
PRIVATE & CONFIDENTIAL 2 CONTENTS Section 1 Adex Overview Section 2 Performance Review 2.1 Media Prima Group 2.2 TV Networks 2.3 Radio Networks 2.4 Print Section 3 Proposed Dividend for FYE 2006 Section 4 Outlook & Conclusions
Slide 3: Section 1: Adex Overview
PRIVATE & CONFIDENTIAL 3 SECTION 1 ADEX OVERVIEW
Slide 4: Adex by Media – A Structural Shift?
PRIVATE & CONFIDENTIAL ADEX BY MEDIA – A STRUCTURAL SHIFT? 4 FYE 2006 FYE 2005 TV TV 31% 29% Radio N/papers Radio N/papers 4% 58% 4% 60% Others Outdoor Others Outdoor 5% 2% 5% 2% RM Million Newspapers TV Radio Outdoor Others Total FYE 2006 2,741 1,478 193 101 224 4,737 FYE 2005 2,778 1,311 180 76 21
Slide 5: Section 2.1: Media Prima Group
PRIVATE & CONFIDENTIAL 5 SECTION 2 : PERFORMANCE REVIEW SECTION 2.1 MEDIA PRIMA GROUP
Slide 6: Media Prima Group Structure
PRIVATE & CONFIDENTIAL MEDIA PRIMA GROUP STRUCTURE 6 Television Content Events Print Media Radio Outdoor Broadcasting Creation Management 100.0% 100.0% 43.3% 75.0% 100.0% 100% 80% 100.0% 100.0% 100.0% 100% 100% FACT SHEET Share capital Issued & paid-up share capital @ 30/04/07 = 815.2m Extracts from
Slide 7: Consolidated Results for FYE 31 December 2006
PRIVATE & CONFIDENTIAL 7 CONSOLIDATED RESULTS FOR FYE 31 DECEMBER 2006 MPB Group Variance (A-B) (RM'000) A B FYE 2006 FYE 2005 RM'000 % Net Revenue 534,689 399,689 135,000 34% Direct Costs (166,353) (138,044) 28,309 21% CONTRIBUTION 368,336 261,645 106,691 41% Other Income 16,965 15,717 1,248 8% Ove
Slide 8: Results FYE 2006 - Key Highlights
PRIVATE & CONFIDENTIAL RESULTS FYE 2006 - KEY HIGHLIGHTS 8 • Strong advertising revenue in TV Networks backed by concentrated sales and REVENUE marketing efforts BY 34% • On pro-forma basis, TV Networks’ net revenue grew by 19% • Driven by TV Networks EBITDA of RM151.5m and even after accounting for
Slide 9: Continuing the Transformation Success
PRIVATE & CONFIDENTIAL CONTINUING THE TRANSFORMATION SUCCESS 9 Completion of de-merger New management for the Group from 2002 onwards 2000* 2002* 2003* 2004 2005 2006 (RMm) (RMm) (RMm) (RMm) (RMm) (RMm) Revenue Net revenue 221.57 244.36 279.26 328.41 399.69 534.69 has nearly doubled EBITDA before EI
Slide 10: Strong Growth - Revenue
PRIVATE & CONFIDENTIAL 10 STRONG GROWTH - REVENUE Strong revenue growth: 6-Year Compound Annual Growth Rate (CAGR) of about 15.8% 600 535 R 500 M 400 400 M i 328 l 300 279 l 241 244 222 i 200 o n 100 0 2000 2001 2002 2003 2004 2005 2006 Year Revenue
Slide 11: Section 2.2: TV Networks
PRIVATE & CONFIDENTIAL 11 SECTION 2.2 TV NETWORKS
Slide 12: TV Viewership Share (FTA & Pay TV)
PRIVATE & CONFIDENTIAL TV VIEWERSHIP SHARE (FTA & PAY TV) 12 Total 6+ Viewers Chinese 6+ Viewers Urban 6+ Viewers Station 2006 2005 2006 2005 2006 2005 33% 35% 12% 15% 28% 31% 9% 15% 10% 5% 4% 15% 13% 6% 5% 3% 1% 2% 50% 39% 43% 28% 46% 36% 8% 11% 9% NA NA NA 10% 10% 2% 2% 8% 7% 13% 15% 11% 10% 11% 1
Slide 13: TV9's Impressive Debut in 2006
PRIVATE & CONFIDENTIAL 13 TV VIEWERSHIP SHARE (FTA & PAY TV):TV9’S IMPRESSIVE DEBUT IN 2006 MPB Collective Share : 60.2% in Jul-Dec 2006 vs. 53.9% in Jan-Jun 2006 (Total Malay 6+Viewers) Jan – June July – Dec Movement 2006 2006 42.3% 44.2% 1.9% Reduced by only 8.9% 6.0% 2.9% 1.3% 2.7% 2.4% 0.3% - 7.
Slide 14: TV Adex Share by Stations: FYE 2006
PRIVATE & CONFIDENTIAL 14 TV ADEX SHARE BY STATIONS: FYE 2006 RM '000 TV3 8 TV n tv7 TV9 To ta l M PB TV1 TV2 To ta l TVN 2006 Increase to attract NTA but sustainable as Non discounted gross revenue bonus spots mainly for fringe time -% 45 15 19 6 85 4 12 100 - RM'000 672,027 225,709 280,396 92,389
Slide 15: Strategies & Review of Performance: TV Networks
PRIVATE & CONFIDENTIAL STRATEGIES & REVIEW OF PERFORMANCE: TV NETWORKS 15 • Adopted clear positioning statement for all four stations which Implement minimised cannibalisation portfolio • Focused branding activities and marketing communications to segmentation advertisers, viewers, investors and oth
Slide 16: Section 2.3: Radio Networks
PRIVATE & CONFIDENTIAL 16 SECTION 2.3 RADIO NETWORKS
Slide 17: Listenership Share Hot.fm
PRIVATE & CONFIDENTIAL LISTENERSHIP SHARE HOT.FM 17 Listenership of the Top 3 Most Listened to Radio Stations (excluding RTM channels) -9% 7,000 6,542 6,227 5,940 6,000 5,000 4,000 '000 2,997 2,922 3,000 2168 2,299 2,000 1,413 1,000 0 Hot.fm Era Sinar Station S2 2005 S1 2006 S2 2006 Source: Nielsen
Slide 18: Listenership Share Fly.fm
PRIVATE & CONFIDENTIAL LISTENERSHIP SHARE FLY.FM 18 Listenership of the Top 4 English Radio Stations (excluding RTM Channels) 1800 1,660 -31% 1600 1,349 1400 1200 1,149 -45% 1000 '000 800 667 577 539 600 434 438 536 494 370 400 200 0 Fly.fm Hitz.fm Light & Easy Mix.fm Station S2 2005 S1 2006 S2 2006
Slide 19: Section 2.4: Print
PRIVATE & CONFIDENTIAL 19 SECTION 2.4 PRINT
Slide 20: Publishing Results FY 2006 vs. FY 2005
PRIVATE & CONFIDENTIAL PUBLISHING RESULTS FY 2006 vs. FY 2005 2006 2005 Variance Non Group Publishing Publishing Publishing RM'000 RM'000 RM'000 RM'000 RM'000 % Revenue 520,063 2,680 517,383 518,225 (842) (0) EBITDA 62,293 (2,265) 64,558 58,722 5,836 10 Depreciation (41,298) (1,370) (39,928) (43,456
Slide 21: Exceptional Items
PRIVATE & CONFIDENTIAL EXCEPTIONAL ITEMS 2006 2005 Variance Group Group RM'000 RM'000 RM'000 VSS (28,348) 0 (28,348) Writeback impairment in plant & equipment 85,792 24,885 60,907 Impairment loss on investments 0 (6,818) 6,818 Allowance for impairment on non-trade debts 0 (1,177) 1,177 Impairment of
Slide 22: Industry Adex Market Share by Language
PRIVATE & CONFIDENTIAL INDUSTRY ADEX MARKET SHARE BY LANGUAGE 60 52 53 53 52 51 46 50 48 45 40 32 34 29 28 28 28 28 27 22 % 30 23 20 21 21 19 19 19 20 10 0 1999 2000 2001 2002 2003 2004 2005 2006 English Chinese/Others Malay
Slide 23: Circulation Market Share – English & Bahasa
PRIVATE & CONFIDENTIAL CIRCULATION MARKET SHARE – ENGLISH & BAHASA ENGLISH ABC JAN-JUN 2006 ABC JUL - DEC 2005 M.Mail M.Mail NST 30,894 NST 35,696 6% 138,896 140,044 7% 29% 29% Star Star 309,029 310,053 64% 65% BAHASA ABC JAN-JUN 2006 ABC JUL-DEC 2005 B.Harian B .Harian H.M etro H.Metro 205,555 201,
Slide 24: NSTP – Newsprint Price Trend
0 100 200 300 400 500 600 700 800 900 USD/MT 1000 1984 503 1985 522 1986 498 1987 531 1988 702 1989 729 1990 589 1991 632 NSTP – NEWSPRINT PRICE TREND 1992 495 1993 450 1994 475 721 1995 1996 942 1997 509 1998 574 1999 546 2000 542 2001 701 Newsprint accounts for about 35-40% of costs 2002 466 2003
Slide 25: Section 3: Proposed Dividend for FYE 2006
PRIVATE & CONFIDENTIAL 25 SECTION 3 PROPOSED DIVIDEND FOR FYE 2006
Slide 26: Proposed Dividend – FYE 2006
PRIVATE & CONFIDENTIAL 26 PROPOSED DIVIDEND – FYE 2006 • Proposed first and final dividend of 3.5 sen less tax of 27% for FYE 31 December 2006 (subject to shareholders’ approval at this AGM). • The calculation for dividend payout and yield for the purpose of illustration based on the issued and paid
Slide 27: Section 4: Outlook & Conclusions
PRIVATE & CONFIDENTIAL 27 SECTION 4 OUTLOOK & CONCLUSIONS
Slide 28: Outlook & Conclusions
PRIVATE & CONFIDENTIAL OUTLOOK & CONCLUSIONS 28 • Market environment expected to be challenging but we still expect Adex to continue to track economic growth • Q406 adspend was soft and spilled over to Q107. However, management expects improvement thereafter given expected improvement in market sent
Slide 29: Q&A Thank You
PRIVATE & CONFIDENTIAL Q&A 29 For information www.mediaprima.com.my THANK YOU Inquiries, Suggestion and Comments investors@mediaprima.com.my
Slide 30: Note: Forward-looking statements
PRIVATE & CONFIDENTIAL 30 Note: The presentation may contain forward-looking statements which are based on MPB's current expectations, forecasts and assumptions based on management's good faith expectations and belief concerning future developments. In some cases forward-looking statements may be id