Corporate Update
February 2013
PT Media Nusantara Citra Tbk.
Listed and traded on the Indonesia Stock Exchange STOCK CODE: MNCN
2
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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
Junior High, 19% Senior high,
29%
Academy, 3%
Not finished elementary,
Well Positioned in a Conducive Growth Environment
5 Indonesia has one of the fastest growing population in the world with one of the highest projected GDP growth.
GDP Growth CAGR (2010–2013F)
Source: IMF (Sept 2010) Millions
Population (2011)
Source: MPA 2011
Global Economic Growth (2011)
Source: MPA 2011 and Indonesian government
Source: Indonesia Bureau of Statistics
A1 3500
Monthly Household Expenditure in Thousands Rupiah A Young Population : 70% - Below 40yr Completed Education Level
1,348
0-14 15-29 30-49 50-69 70+
26%
6
Asia Pacific Net Adspend (2011–2013F)
Source: Media Partners Asia 2012
Net adspend is one of the lowest in the region indicating enormous growth potential, TV and print are also expected to remain as key revenue drivers of the media industry.
In USD billion
Asia Pacific Net Adspend Growth (2011-2013F)
Well Positioned in a Conducive Growth Environment
7
Net Adspend as a Percentage of GDP (2011)
Source: Media Partners Asia 2012
Net Adspend Per Capita (2011 - 2013F)
In USD
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%
Well Positioned in a Conducive Growth Environment
2011
8
Source: Media Partners Asia 2010 Source: Media Partners Asia 2010
Source: Media Partners Asia 2010
Asia Pacific TV Penetration of Total Households (2010F-2014F)
Newspaper Circulation in Indonesia (2010F-2014F) Internet Household Penetration in Indonesia
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 industry has strong growth potential given the low
penetration rates.
9
Indonesia’s Media Advertising Market Share
TV and print is forecasted to remain as major contributors of advertising
revenues in the media industry.
2016F
Source: Media Partners Asia 2012
2011
TV, 68.9% Newspaper,
21.5%
Magazine, 3.0%
Online, 2.9% OOH, 2.2% Radio, 1.5%
TV, 70.4% Newspaper,
17.5%
Magazine, 2.4%
Online, 6.5%
Section 2
MNC Update
The Largest Integrated Media Company in Indonesia
11
RCTI MNCTV Global TV Radio
MNC
Pictures Tabloid & Magazine
MNC Networks Star Media
Nusantara
MNC Channels
Content library contains more than 120,000 hours and increasing by more than 15,000 hours per year
Sindo Media Others
Free-To-Air TV
Tabloid & Magazine
National & Regional
News Portal Local TV Network
Newspaper
Radio
Sindo Weekly
More channels will be added
Our Key Growth Strategies
12
Maximize synergies among
business units to achieve optimal
revenues and achieve cost
efficiencies
Maintaining and enhancing our
leading positions as the largest
broadcaster in Indonesia by
increasing the audience share of
existing national FTA TV stations
Creating our own content by
enhancing in-house production
capabilities, talent
management, content library and
creating new channels to further
boost revenues
Expanding into regional TV network
through Sindo Media
1
2
3
Strong Market Position with Superior Content
Capabilities
13 RCTI was established as the first private TV station in Indonesia
in 1989. Currently #1 TV station in terms of audience share
RCTI, MNC TV and Global TV cumulatively control 40%
audience share in prime time.
Several highly sought after agreements to screen popular international programs/events like Disney ABC, FOX, Warner Bros, Nickelodeon, 2010 FIFA World Cup, Formula 1, UEFA Euro, Barclays Premier League, Indonesian Premier League and 26thSea Games Indonesia 2011 (all programs are exclusive to
MNC).
Dominant TV Player in Indonesia
More than 120,000 hours of content library and increasing by more than 15,000 hours annually
Entire content library is produced in-house, of which 60% is comprised of non-news content
Monetizing our content library by distributing and licensing content to other TV stations in Indonesia and overseas
Content library can be utilized by all 3 national TV networks, allowing programming / licensing costs to be spread out
OPPORTUNITIES
Content can be sold / licensed to other TV channels
Content are repackaged for distribution on pay TV channels in Indonesia and overseas which consisted of –MNC
Entertainment, MNC News Channel, MNC Music Channel, MNC Business, MNC Lifestyle , MNC Muslim, Life, MNC Sports 1, MNC Sports 2, MNC Comedy, MNC Drama, Golf, MNC Movie, MNC Infotainment, and MNC Fashion.
MNC International is broadcasted in the Middle East and Singapore.
Additional advertising revenues by re-screening popular programs that have brought in strong advertising revenues in the past
Extensive Content Library to Leverage On
*Source : Nielsen (Prime time All 10 cities, 11 channels, All 5+)
Kids
13/20
Animation
20/20
Housewives
13/20
Series
15/20
All Programs
15/20
Sports
15/20
Source: Nielsen
MNC’s Programs Continues to Dominate
in all Genre
Number of MNC’s Programs in the Top
20 for National FTA TVs
(January to December 2012)
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)
15 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
16
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 Unaudited
18
Financial Performance from 12M 2010 (
Audited)
until
12M 2012
(Unaudited)
Source: Company Financials
12M 2010 to 12M 2012 Financials
12M 2010 to 12M 2012 Solvency Metrics IDR trillion
Segmental Overview
–
Revenue
19
12M 2012 (Unaudited)
12M 2011 (Audited)
Split by TV Network
Split by TV Network
78%
Non ad Revenue
VAS
Non ad Revenue
93% Non ad Revenue VAS
Content
Segmental Overview
–
Core EBITDA
20
12M 2012 (Unaudited)
12M 2011 (Audited)
Split by TV Network
Split by TV Network
65% Non ad Revenue VAS
82%
Value Added Services
Others
Revenue Core EBITDA Total EBITDA Net Income 12M2011 Audited 12M2012 Unaudited
Financial Performance
–
12M 2012
(Unaudited)
21
Revenue Breakdown 12M 2011 & 12M 2012
12M 2012 (Unaudited) 12M 2011 (Audited)
IDR billion
12M 2011
(Audited)
12M 2012
(Unaudited)
%chg
Revenue
5,390
6,092
13%
Advertising
4,418
5,367
21%
Content
93
132
42%
Value Added Services
536
216
-60%
Others
343
377
10%
Operating expenses
3,808
3,916
3%
Core EBITDA
1,791
2,368
32%
Total EBITDA
1,863
2,565
38%
Core EBITDA Margin
33%
39%
Total EBITDA Margin
35%
42%
Net Income
1,070
1,614
51%
+13%
+38%