Corporate Update
April 2013
PT Media Nusantara Citra Tbk.
Listed and traded on the Indonesia Stock Exchange
STOCK CODE: MNCN
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Section 1
Section 2
Section 3
Table
of Content
Indonesia’s Media Industry Update
MNC Update
Financial Update MNC
Section1
Indonesia’s Media Industry Update
Macro drivers support industry growth
Source: MPA 2011
A Young Population : 80% - Below 50yr
Source: Indonesia Bureau of Statistics 2012
Completed Education Level
29%
26% 29%
13%
3%
0-14 15-29 30-49 50-69 70+
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
36mn 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?
Asia Pacific Net Adspend (2011–2013F)
Source: Media Partners Asia 2012
In USD billion
Asia Pacific Net Adspend Growth (2011-2013F)
2011 2013F 2011 2013F
Media Partners Asia forecasts net ad spend growth of 15.8% in 2013
Growth is among the highest in the region
Indonesia’s ad spend is growing from a small base; we expect growth to be sustainable7 $5.000
$10.000
$12.000
Indonesia Thailand Philippines
Net Adspend as a Percentage of GDP (2011)
Source: Media Partners Asia 2012
In USD/spot
0,9%
0,7% 0,7%
0,6%
0,6% 0,5% 0,5%
0,4% 0,4%
0,3% 0,3% 0,3% 0,3%
0,2%
Price of 30 seconds prime time spot in the region
Net adspend as % of GDP is the lowest in the region indicating solid growth potential
The price for a 30 seconds prime time spot is cheap compare to other ASEAN countriesDemand (More brands advertising on TV)
41%
22% 24%
10% 3%
MNC Group EMTEK Trans Corp Visi Media Other
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 budgetSource: Nielsen Prime time all demographic Feb 2013
Limited supply: Only 10 FTA TV stations
100% 100% 100% 99% 98% 97% 94% 93%
Korea Japan Singapore Hong Kong Malaysia Australia China Thailand Taiwan Vietnam Philippines India Indonesia 2010F 2014F
9 Source: Media Partners Asia 2010 Source: Media Partners Asia 2010
Asia Pacific TV Penetration of Total Households (2010F-2014F)
5,7
5,8
5,9
6,0 6,0
2010F 2011F 2012F 2013F 2014F
18,0% 20,5%
23,7%
27,1%
30,2%
2010F 2011F 2012F 2013F 2014F
Low Penetration Rates in Key Segments
Millions
Indonesia’s Media Advertising Market Share
2016F
Source: Media Partners Asia 2012
2012
TV; 69.1% Newspaper,
20.7%
Magazine; 2.9%
Online; 3.6% OOH; 2,2%
Radio; 1,5%
TV; 70,4% Newspaper,
17.5%
Magazine; 2,4%
Online; 6,5%
OOH; 2,0% Radio; 1,2%
Given the infrastructure constraint, TV is the only medium to reach a mass audience. TV advertising is expected to maintain a dominant market shareSection 2
MNC Update
The Largest Integrated Media Company in Indonesia
RCTI MNCTV Global TV Radio
MNC
Pictures Tabloid & Magazine
MNC Networks Star Media
Nusantara
MNC Channels
Content library contains more than 130,000 hours and increasing by
Sindo Media Others
Free-To-Air TV
Tabloid & Magazine
National & Regional
News
More channels will be added
13
Our 4 key growth drivers
RCTI, the #1 TV station, will drive the
overall industry growth
Successfully turned around MNCTV;
higher ad rates to follow.
Focus to improve ratings at Global TV
17 exclusive channels on MNC Skyvision
to generate ad revenue
Rebrand 38 local TV stations as 4th
100%
65%
31%
Competitor MNC TV Global TV
RCTI has consistently been the # 1 TV station in
Indonesia since its inception in 1989.
RCTI, MNC TV and Global TV cumulatively
control 40%
audience share during prime time
In 2012, our group experienced 22.0%
advertising revenue growth, outperforming the
industry growth rate of 15.5%, driven by RCTI
and MNC TV
Change in programming strategy paid off at MNC
TV. Viewership ranking jumped to #2 in 2012
from #6 in 2011. We see considerable scope for
increased advertising revenue at MNCTV as ad
rates are still much lower compare to RCTI
Focus is now to turnaround Global TV
Dominant TV Player in Indonesia
22,0%
15,5%
MNC Group Industry Peers
MNC ad revenue growth outperforming the industry
2012 advertising revenue growth
15
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, Indonesia Idol and X Factor
Exclusive programming with top Hollywood studios
More than 120,000 hours of content library and
increasing by more than 15,000 hours annually
We also have 16 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
Source: Nielsen Monthly Prime Time All Demographic Audience Share
Primetime Nielsen TV stations ranking
Talent Search
15/20
Animation
20/20
Housewives
14/20
Series
14/20
All Programs
16/20
Sports
16/20
Number of MNC’s Programs in the Top 20 for National FTA
TVs
(January to December 2012)
MNC’s TV Programs Dominate in all Genre
17
MNC Drama Series occupied 7 out of 10 spots
Top 10 Drama Series in 2012 Station Rating Share
1 TUKANG BUBUR NAIK HAJI THE SERIES RCTI 5.2 21.7
2 TENDANGAN SI MADUN MNCTV 4.6 16.4
3 SI BIANG KEROK CILIK SCTV 4.4 19.8
4 SEPARUH AKU RCTI 4.3 17.2
5 BINAR BENING BERLIAN RCTI 4.1 15.9
6 FATHIYAH MNCTV 4.1 15.7
7 LOVE IN PARIS SCTV 3.9 15.3
8 TENDANGAN SI MADUN SEASON 2 MNCTV 3.8 18.0
9 RADEN KIAN SANTANG MNCTV 3.8 16.3
Sports
Movies
Lifestyle
News
Entertainment
Kids
Soon
Local content
19
The most comprehensive Pay TV Channels lineup
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 revenuePay TV Channels to drive ad revenue for MNCN
OPPORTUNITIES
MNCN has produced and packaged 14 Pay
TV channels exclusively for MNC Sky Vision.
In return MNCN receives 100% ad revenue
MNC Sports, MNC Entertainment, MNC News
and MNC Business are # 1 ranked in their
respective categories versus International
peers
In 2013, we will add 4 more channels: MNC
Food & Travel, MNC Kids, MNC Home and
MNC Wedding
We expect MNC Channels to generate
meaningful advertising revenue as
subscribers grow
MNC Channels share of Pay TV audience
22%
78%
1294
427
169 128 117
38
Kompas Seputar Indonesia
Koran Tempo
Republika Media Indonesia
Bisnis Indonesia
Strong Market Position with
Superior Content Capabilities (cont’d)
21 36 radio stations in 4 different formats
consistently ranked #1 or 2 in their respective genres / targeted audience
- Sindo Radio - #1 news station
- Radio Dangdut Indonesia - #2 station for middle / low income segments
- ARH Global - #1 choice amongst young listeners
- V Radio –female radio station
Leading Radio Stations in Indonesia
Source: Nielsen Media Research
In 5 years following the launch in
2005, Seputar Indonesia has become the 2nd largest newspaper in Jakarta and the 3rd largest in Indonesia
The remaining 5 of the top 6 newspapers in Indonesia have been in circulation for more than 30 years on average
Tabloids / magazines published by us are popular among readers
- Genie is the third largest tabloid by readership
Strong Presence in Print Media
Source: Nielsen Media Index, figures refer to circulation in Jakarta only
Wave #4 2010 Total Audience in Jakarta
1 SINDO RADIO 472.000
2 DELTA 159.000
3 PAS 149.000
4 SMART < 1.000
1 RDI 4.007.000
2 BENS 3.075.000
3 GEN FM 3.031.000
4 MEGASWARA 1.953.000
1 ARH GLOBAL 747.000
2 MUSTANG 579.000
3 PRAMBORS 443.000
HaryTanoesoedibjo
CEO, MNC Group
21 years of relevant experience
Group President & CEO of MNC since March 2004
Founding shareholder and Group Executive Chairman of PT Bhakti Investam aTbk. 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
Agus Mulyanto
Director
21 years of relevant experience
Director of MNC since 2006 and a member of the Board of Commissioners of RCTI since 2008
President Director, Senior Executive and a member of the Board of Directors of PT Surya Citra Televisi from 1989 to 2003
Doctorate of Philosophy in Telecommunication Engineering, University of Wisconsin, Madison, USA (1982)
Master of Science degree in Telecommunication Engineering with a Minor in Business Management from the University of Wisconsin, Madison, USA
Degree in Electrical Engineering majoring in Telecommunication from Sepuluh Nopember Institute of Technology (ITS), Surabaya
Oerianto Guyandi
CFO, MNC Group
21 years of relevant experience
Director of MNC since 2009 and Group CFO since 2008. Also CFO of PT Global Mediacom Tbk.
Previously held several important positions such as Director/Vice President Director in PT MNC Sky Vision, PT Rajawali Citra Televisi Indonesia, and PT Global Informasi Bermutu
Started his career in Public Accounting Firm Prasetio Utomo & Co. (Arthur Andersen) and Salim Group
Bachelor degree in Economy in Accounting from the University of Indonesia and a Bachelor degree in Agricultural Engineering from Institute Pertanian Bogor in Indonesia
Nana Puspa Dewi
Director
24 years of relevant experience
Joined MNC in 2007 after spending 21 years in the consumer goods industry with major FMCG companies such as Procter & Gamble, Mars Inc., Mayora and Cadbury
Held different positions from Management Trainee, Brand Manager, GM Marketing, Country Manager and her last position prior to joining MNC was as Managing Director in Cadbury Indonesia
Has many years of experience in market research, sales & marketing and general management
Degree in Economy in Management from Udayana University, Indonesia
Section 4
Financial Update MNC
(Audited FY 2011 & Unaudited 12M 2012)
4,86
Revenue Core Ebitda Total Assets Equity
12M2010 Audited 12M2011 Audited 12M2012 Audited
24
Financial Performance from 12M 2010 (
Audited)
until
12M 2012
(Audited)
12M 2010 to 12M 2012 Financials
12M 2010 to 12M 2012 Solvency Metrics
IDR trillion
Debt / Core EBITDA Debt / Equity Core EBITDA / Interest Core EBITDA Margin Core EBITDA Margin TVs Core EBITDA Margin RCTI
Segmental Overview
–
Revenue
25
12M 2012 (Unaudited)
12M 2011 (Audited)
Split by TV Network
Split by TV Network
82%
Non Ad Revenue
VAS
Non ad Revenue
VAS
93% Non ad Revenue VAS
Content
Segmental Overview
–
Core EBITDA
12M 2012 (Audited)
12M 2011 (Audited)
Split by TV Network
Split by TV Network
85% 3%
3% 8%
Advertising Content
Value Added Service Others
Revenue Core EBITDA Total EBITDA Net Income 12M2011 Audited 12M 2012 Audited
82% 2%
10% 6%
Financial Performance
–
12M 2012
(Audited)
27 Revenue Breakdown 12M 2011 & 12M 2012
12M 2012 (Audited) 12M 2011 (Audited)
+16%
+35%
+55% +33%
IDR billion 12M 2011 12M 2012 %chg
Revenue 5,390 6,265 16%
Advertising 4,418 5,351 21%
Content 93 197 111%
Value Added Services 536 217 -60%
Others 343 500 46%
Operating expenses 3,808 4,050 6%
Core EBITDA 1,791 2,375 33%
Total EBITDA 1,863 2,518 35%
Core EBITDA Margin 33% 38%
Total EBITDA Margin 35% 40%