MNCN Corporate Update August 2017 final

(1)

Corporate Update

August 2017

PT Media Nusantara Citra Tbk.

Listed and traded on the Indonesia Stock Exchange

(2)

Disclaimer

2

By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply

with these restrictions may constitute a violation of applicable securities laws.

The information and opinions contained in this presentation are intended solely for your personal reference and are strictly

confidential. The information and opinions contained in this presentation have not been independently verified, and no

representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy,

completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you may not

rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings,

business affairs, business prospects, properties or results of operations of the company or its subsidiaries. The information and

opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.

Neither the company (including any of its affiliates, advisors and representatives) nor the underwriters (including any of their

respective affiliates, advisors or representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise)

for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss

howsoever arising from any use of this presentation.

In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the

company's current views with respect to future events and financial performance. These views are based on a number of

estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as

well as various risks and these may change over time and in many cases are outside the control of the company and its directors.

No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are

correct. Actual results may differ materially from those forecast and projected.

This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe

for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or

investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other

purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the company.

Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer

document issued in respect of such securities.

(3)

MNC Media Corporate Structure

(4)

MNC Media Corporate Structure

4

Global Mediacom Tbk

Media Nusantara Citra Tbk

Content and Advertising

Based Media

62.6%

MNC Sky Vision Tbk

PT MNC Kabel Mediakom

PT Sky Vision Network

Subscription Based Media

Online Media

* total group ownership is currently over 95%

87.6%*

100 %

(5)

Indonesia’s Media Industry Update

(6)

University

Population (2016) A Young Population : 80% - Below 50yr

Macro drivers support industry growth

Completed Education Level

Source: Nielsen Media Research Source: Indonesia Bureau of Statistics 2012

Monthly Household Expenditure (Rp1,000)



A large & young population



200mn people below age of 50



A rising middle class



Strong economic growth driven

by domestic consumption



60mn TV household



Only 4% of population has

university degrees



Indonesians prefer to watch TV

than to read, watching 5 hours

of TV per day.

What are the macro drivers?

A1 3500

Source: MPA 2016 in millions

(7)

7

Well Positioned in a Conducive Growth Environment



_{Indonesia’s net ad spend}

as % of GDP is the lowest in the region, reflecting strong market growth potential



Price for a 30 seconds prime time spot is cheap compared to other ASEAN countries

Net Ad Spend as a Percentage of GDP (2016)

Source: Media Partners Asia 2016

USD/spot

30 seconds prime time spot

$5.400 $5.950 $6.600

$10.600

$16.400

$40.000

$80.000

Indonesia Malaysia Vietnam Thailand Philippines Singapore Australia

Source: Media Partners Asia 2016

0,5%

0,5% 0,5%

0,4%

0,3%

0,2%

Vietnam Philippines Singapore Thailand Malaysia Indonesia

(8)

8



Prime time advertising slots are limited; strong demand for advertising



Local brands have been aggressive in advertising to compete with multi national companies



We expect automotive and financial companies to increase TV advertising budget

Industry Dynamics

Limited Supply : Only 11 FTA TV stations Demand (More brands advertising on TV)

42%

26% 20,1

10% 3%

MNCN SCMA VIVA Trans Others

Source: Nielsen All-Time all demography June 2017

(9)

9

Low Penetration Rates in Key Segments

1,1 1,2 1,3 1,3 1,4 1,5 1,6 1,7 1,8

1,9 1,9

0,5 0,6 0,7 0,7

0,8 0,9 1,0

1,1 1,1 1,2 1,2

2012A 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E 2022E TV Other

Korea Japan Singapore Australia Hong Kong Malaysia China Thailand Taiwan Vietnam Philippines India Indonesia

Low TV household penetration in Indonesia, relative to rest of Asia

Steady expansion of Indonesia advertising market

Asia Pacific TV Penetration of Total Households (2016 and 2017)

Source: Media Partners Asia 2016 Net advertising market (US$bn)

(10)

10

Media viewership in 2015

10

Consumer Media View 2015 (%)

12

14

30

2013 2014 2015

People Owning Smartphone (%)

(11)

11

32%

61%

71%

2011 2014 2015

3 hours

73%

>3 hours

27%

% of daily internet user

Time Spent Internet in Daily (%)

vs

TV average of 5 hours per day

TV still Outweighs Growing Digital and Internet Consumption

(12)



The average American watches an astonishing 5 hours and 4 minutes of TV a day according to Nielsen.



TV’s

cumulative audience increase, to 213.5 million people, or 87.9%. A year ago, reach was 210.3 million, or 87.6%.



Americans aged 18 to 24, still watch 16.2 hours a week, whilst the 35 or older watch double that in a week.



About 50 percent of Americans now have subscription services like Netflix, Amazon Prime and Hulu in their homes.



More People Are Watching TV Now Than a

Decade Ago,

and millennial will come around, too

04.31

04.34

04.51

00.33 00.33 00.32

01.52 01.51 01.54

00.08 00.09 00.10

00.14 00.14 00.12

00.13 00.09 00.05

00.58 _00.48 00.49

01.39

Q1 2016 Q1 2015 Q1 2014

source: Nielsen 1Q US Total Audience Report

(13)

US Advertising Market Share

(14)

14

FTA TV TIME SPENT IS STILL GROWING, WITH 35+ AGE

GROUP BEING MOST DOMINANT

4.18

4.34

(15)

15

OVER 90% OF ONLINE INDONESIANS REGULARLY

CONSUME TV AND ONLINE MEDIA SIMULTANEOUSLY

Simultaneous media consumption (TV + Online)

–

2015 vs 2011

AGE

(16)

16

... AND THEY’RE MOST LIKELY TALKING ABOUT TV

Participation in social TV activity during 2015 (among total online population)

INTERACTING WITH OTHERS OR

POSTING COMMENTS

about TV

Programs (Incl. Sports) or Movies as

you are watching them, or about those

you watched recently

READING OTHER PEOPLE’S

COMMENTS

about TV Programs (Incl.

Sports) or Movies as you are watching

them, or about those you watched

recently

Weekly or more often

Within last 12 months

79%

58%

Weekly or more often

Within last 12 months

86%

57%

(17)

Media Credibility and Popularity

Most Accessible %

Print

Most Trusted %

(18)

18

Indonesia’s Media Advertising Market Share

2022F

2017



Given the infrastructure constraint, TV is the only medium to reach a mass audience. TV

advertising is expected to maintain a dominant market share

(19)

MNC Update

(20)

The Largest Integrated Media Company in Southeast Asia

RADIO

PRINT

ENTERTAINMENT

NEWS & SPORTS

SUPPORTING

FREE-TO-AIR TV

CONTENT

20

PAY-TV CHANNELS

CONTENT LIBRARY

TALENT

MANAGEMENT

Content library contains more than 300,000 hours and increasing by more than 15,000 hours per year

TALENT SEARCH/ NEWS/

VARIETY/ SPORTS

ANIMATION

IN HOUSE PRODUCTION UNITS

DRAMA/ MOVIES/ FTV

(21)

Our Key Growth Drivers

21

RCTI, MNCTV, and Global TV grow

significantly outperforming the industry

iNewsTV a national network with focus on

news, infotainment and sports

22 exclusive channels on MNC Sky Vision

to generate ad revenue

(22)

Content is King



Content is the only way to capture audience share

and monetize advertising dollars



Indonesians love “

Sinetrons

” and we broadcast

many of the top drama series



We have licensed popular International programs

such as Master Chef, Indonesian Idol and X Factor



Exclusive programming with top Hollywood studios



More than 300,000 hours of content library and

increasing by more than 15,000 hours annually



We also have 22 MNC branded Pay TV Channels.

These channels are integral to our content strategy

Creating the best content is our top priority

“

Content is where I expect much of the real money will be

made on the Internet, just as it was in broadcasting.

The television revolution that began half a century ago

spawned a number of industries, including the manufacturing of

TV sets, but the long-term winners were those who used the

medium to deliver information and entertainment.

”

“Content is King” by Bill Gates in 1996

22

Source: Nielsen Prime-Time All Demographic 5+ Audience Share

Prime-Time Nielsen TV stations ranking

(23)

Top 20 Drama Series as of August 2017

23

• New comedy drama series

produced by MNC Pictures “Dunia Terbalik” performed very

strong topping the program charts.

• 6 out of the Top 20 program for June 2017 belongs to MNC

Source: Nielsen, ALL DEMO, 5+

(24)

Biggest producer of in-house content in Indonesia

Star Media

Nusantara

RCTI, MNCTV, GTV

and Sport

Productions

MNC Pictures

MNC Animation

• MNC produces over

15,000 hours of in house

content every year. 41

hours per day! More than

any competitors in

Indonesia.

• Full control from talent

management to

production to broadcast

• 4 in house production

divisions: The

programming strategy

allows RCTI to achieve

industry leading 55%

EBITDA margins.

Integrated end to end programming strategy drives highest margins

(25)

25

MNC Has The Best Talent Search Format Lineup

Pioneering the international scale talent search programs in Indonesia, such as

Indonesian Idol - 8

th

_{season and running,}

X-Factor Indonesia - 2

nd

_{season and running,}

Rising Star Indonesia - The 1

st

_{Season with interactive talent search programs}

MasterChef Indonesia - 3

rd

_{season and running}

The Voice Indonesia

–

Aired February 2016

(26)

Sports

Movies

Lifestyle

News

Entertainment

Kids

Local content

26

The most comprehensive Pay-TV Channels line-up



We have the most comprehensive Pay TV channel lineup in Indonesia



Our customers prefer local content



Producing content in Bahasa Indonesia is our competitive advantage



We generate subscription revenue and advertising revenue

(27)

Top 20 Most Watched Pay TV Channels for 2016

27

Source: AGB Nielsen Report

NO.

CHANNEL

11 COMEDY CHANNEL

12 NGC WILD

13 FOX MOVIES PREMIUM

14 CINEMAX

15 MNC ENTERTAINMENT

16 MNC INFOTAINMENT

17 MNC NEWS

18 MOVIE CHANNEL

19 CHANNEL V

20 CELESTIAL MOVIES

NO.

CHANNEL

1 DISNEY JUNIOR

2 DISNEY CHANNEL

3 CARTOON NETWORK

4 NATGEO CHANNEL

5 KIDS CHANNEL

6 DRAMA CHANNEL

7 MNC MUSLIM

8 MNC SPORTS

9 HBO HITS

(28)

28 28

Pay TV Channels to drive ad revenue for MNCN

OPPORTUNITIES



MNCN has produced and packaged 22 Pay TV

channels exclusively for MNC Sky Vision. In return

MNCN receives 100% ad revenue



MNC Sports, MNC Infotainment, MNC News and

MNC Business, MNC Music Channel are ranked #1 in

their respective categories versus its International

peers



We expect MNC Channels to generate meaningful

advertising revenue as subscribers grow

MNC Channels share of Pay TV audience in 2016

Source : Nielsen TV Audience Measurement 2016

Rank Sports Channel Channel Share

1 MNC SPORTS 51,70%

2 FOX SPORTS 2 20,23% 3 FOX SPORTS 15,58%

4 SOCCER CHANNEL 12,49%

Rank News Channel Channel Share

1 MNC NEWS 50,822%

2 BERITA SATU 37,15%

3 MNC WORLD NEWS 7,18%

4 CNN

INTERNATIONAL 4,86%

Rank Lifestyle Channel Channel Share

1 MNC INFOTAINMENT 25,40% 2 MNC LIFESTYLE 15,05%

3 TRAVEL LIVING CHANNEL 12,91%

4 FOOD AND TRAVEL 11,84%

Rank Music Channel Channel Share

1 CHANNEL V 54,68%

2 MUSIC CHANNEL 45,32%

Rank Entertainment Channel Channel Share

1 DRAMA CHANNEL 23,06% 2 COMEDY CHANNEL 14,04% 3 MNC ENTERTAINMENT 12,84%

4 FOX CRIME 10,24%

Rank Business Channel Channel Share

1 IDX CHANNEL 93,34%

2 CNBC ASIA 6,66%

MNC

(29)

iNews TV the Largest National Network TV

29

• iNews TV was launched on April 6

th

₂₀₁₅

• Focusing on 24 hours news, entertainment and sports

(30)

Integrated Studio Facilities

(31)

Financial Update Media Nusantara Citra

(32)

32

Financial Performance from FY2013 until FY2016 (Audited)

Source: Company Financials

FY2013 to FY2016 Financials

FY2013 to FY2016 Solvency Metrics

IDR trillion

Revenue EBITDA Assets Equity

2013

Debt/Equity EBITDA/Interest EBITDA Margin

(33)

MNCN FS H1-2017 VS H1-2016

(34)

34

Strong revenue growth with increasing EBITDA Margins

Room For Further Margins Improvement

Source : Company information

EBITDA margins (FY2011A

–

Q1/FY2017A; FY2020E)

33%

38%

42%

37%

38%

40%

41%

44%

(35)

35

Hary Tanoesoedibjo

President Commissioner

 Founding shareholder and Group Executive Chairman of PT Bhakti Investama Tbk. since 1989

 Currently holds positions in several other companies, including Group President & CEO of PT Global Mediacom Tbk. since 2002, President Commissioner of RCTI since 2008, President Commissioner of PT MNC Sky Vision (Indovision), President Commissioner of Media Nusantara Informasi since 2008, President Commissioner of MNC Networks since 2008, President Commissioner of MNC Pictures since 2007, and many other companies within MNC Media and Bhakti Investama Group

 MBA degree from Ottawa University, Canada

 Bachelor of Commerce (Honors) degree from Carleton University, Ottawa, Canada

David Fernando Audy

CEO

 Director of PT Global Mediacom Tbk since 2012. Also the President Director of PT Global Informasi Bermutu since 2010 and PT Linktone Indonesia since 2011

 Previously held several important positions such as the Managing Director of PT Media Nusantara Informasi, as Senior Manager Corporate Finance then as Head of Investor Relations of PT Media Nusantara Citra Tbk

 Previously worked at PT Elektrindo Nusantara from 2005 to 2006 and PT Mobile-8 Telecom Tbk from 2003-2005

 Master of Commerce in Professional Accounting from the University of New South Wales and a Bachelor of Commerce in Finance and Information System from the University of New South Wales

Faisal Dharma Setiawan

CFO _ CEO of PT Asuransi Jiwa Adisarana WanaArtha in 2012, Vice CFO _{Commissioner in PT CIMB Sunlife and PT Asuransi CIGNA in 2009} –Strategy & Finance in PT Bank CIMB Niaga Tbk. in 2009  AGM in PT Indo Kordsa Tbk in 2000, Director of Pension Funds Indo Kordsa Director in 1996

 Graduated from PrasetyaMulya, Graduate School of Management with “MM” degree in International Business in 2001

 Graduated from Universitas Katolik Parahyangan with Civil Engineer Degree (Bachelor Degree) in 1984

Ella Kartika

Director  Managing Director in PT Global Informasi Bermutu in 2013

 Programming & Production Director in PT Rajawali Citra Televisi Indonesia in 2011

 Programming & Production Director in PT Global Informasi Bermutu in 2010

 Sales & Marketing Director in PT Global Informasi Bermutu in 2008

 Obtained Master of Management Program from University of Indonesia majoring in Finance & Banking in 1998

Kanti Mirdiati Imansyah

Director  Director Sales and marketing of RCTI from 2010 –2012, GM Sales and Marketing manager and Director Sales and Marketing

of CTPI from 2006-2010

 AVP Sales and Marketing of Duta Visual Mandiri from 2003-2006, Head of Acquisition Manager of RCTI from 2002–2003

 Sales Group Head Trans TV from 2000 –2003, Sales Group Head & Account Executive1990 –2000

 Bachelor Degree of Science from La Jolla Academy of Advertising Arts and Associate Degree Fashion Merchandising from IFS San Diego, USA

(36)

36

Angela Tanoesoedibjo

Director

 Managing Director of PT. Global Informasi Bermutu since 2014

 Director of PT Megah Group since 2013 and MNI Entertainment since 2008.

 Co-Vice President of MNC Channels in 2013

 Corporate Finance & Business Development in 2010 –2013.

 Bachelor of Arts in Media Arts and Production from The University of Technology, Sydney and Master of Commerce in Finance from The University of New South Wales, Australia.

Arya M. Sinulingga

Director

 President Director in PT Hikmat Makna Aksara (Sindo Weekly) in 2008

 Corporate Secretary in PT Global Mediacom and PT Media Nusantara Citra in 2008 and 2010

 Chief Editor in Global TV in 2011

 Graduated from ITB (Institut Teknologi Bandung) with Bachelor of Civil Engineering degree in 1995

Gwenarty Setiadi

Independent Director

 Director of Human Resources and General Services in PT MNC Sky Vision Tbk in 2009, GM Human Resources and General Services in PT Media Nusantara Citra Tbk in 2008.

 Vice President (VP) in Citibank for Human Resources and General Services in 2007, Head of Direct Sales Training Academy & HRRM in 2005, Outsourcing Management Head in 2004

 Graduated from University of Satya Wacana with Bachelor degree in Agronomy in 1982

(37)

(38)