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2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
Quarterly Briefing
2Q12MAJOR CINEPLEX GROUP PLC.Analyst MeetingParagon Cineplex, Siam Paragon : Aug 15th, 2012
LIFESTYLEentertainment
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
2
contents
The Bottom Line
2Q12 Financial ReviewReview of Revenue, Net profit B/S snapshot
Growth Potentials
LIFESTYLEentertainment
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainmentThe Bottom LineLIFESTYLEentertainment
96
15
2
21
4 24
7
19
3
28
7
21
5
81
13
9 19
1
46
9
6
94
27
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
29
3
21
8
2Q11 2Q12
Net Profit Bt.million
Bt.million
Net profit -26%YoY
2Q11 2Q12 Extra item
96
15
2
21
4 24
7
19
3
28
7
21
5
81
23
3
21
8
46
9
6
-
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Net profit Fin Lease
+38%QoQ
-26%YoY: Not enough revenueRevenue drop in cinema and film distribution business
+38%QoQ: Net profit straight in the Core1Q12 acknowledged gain from selling investment-SF & Insurance claim-Bangna
3
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
-11%YoY: Revenue drop in cinema and film distributionStrong film in 1Q11: Naresuan3,Fast5,Xmen1st,Pirate4
Core Advertising remains strong
The Revenue Review
1,32
6
1,12
3
2Q11 2Q12
1,07
0
878
2Q11 2Q12
256
245
2Q11 2Q12
190 21
9
2Q11 2Q12
118
115
2Q11 2Q12
112 12
92Q11 2Q12
242
202
2Q11 2Q12
112 12
9
18
2Q11 2Q12
2,0
06
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY
Cinema Group
-15%1,07
0
878
2Q11 2Q12
256
245
2Q11 2Q12
190 21
9
2Q11 2Q12
118
115
2Q11 2Q12
112 12
9
2Q11 2Q12
242
202
2Q11 2Q12
Advertising
+16% Bowling
Group
-2%
Core Retail
+15%
Film
Distribution
-16%
112 12
9
18
2Q11 2Q12 4
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainmentThe Revenue Review
2,0
06
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY +7%QoQ
+7%QoQ: strong film, growth trend in core advertising and new branch (Mega bangna)
1,4
00
1,4
02 1,6
75
1,4
44
1,4
70
1,9
88
1,8
56
1,4
16 1,6
67
1,7
8984
15
18
-500
0
500
1,000
1,500
2,000
2,500
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Revenue Fin lease5
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
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The Revenue Review : Cinema2
,00
6
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY
2Q11 2Q12
1,07
0
878
256
245
2Q11 2Q12
Cinema Group
-15%
Concession
-4%
GBO
-18%
774
801 1,
065
762 88
0
1,32
6
1,19
1
809 1,
000
1,12
3
28%24%
28%26%
31% 30%26% 27% 28%
29%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
Cinema revenues & % Gross Margin
-15%YoY: Cinema revenue drop in 2Q12 due to strong movie in 1Q11 i.e. Naresuan3,Fast5,Xmen1st,Pirate4
+12%QoQ: Cinema revenue increase from Stronger Hollywood film in 2Q12 i.e. The Avengers ,Battleship,MIB3,The Snowwhite & the Hunterand slightly margin increased from film hire cost management
+12%QoQ
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
7
The Revenue Review : Cinema (Con’t)
2,0
06
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY
1,07
0
878
256
245
2Q11 2Q12
Cinema Group
-15%
Concession
-4%
GBO
-18%
-15%YoY: GC drop from higher blockbuster in 2Q11 i.e. Naresuan3, Fast5,Xmen1st, Pirate4
12%QoQ: ATP & GC drive growth
Guest count & ATP(Net complementary)
4.9 5.2
6.8
4.8 5.8
7.7 6.6
4.6 5.9 6.1
137 132 135 135127
145152
146 141150
0
20
40
60
80
100
120
140
160
180
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
1Q1
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2Q1
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3Q1
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4Q1
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1Q1
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2Q1
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3Q1
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4Q1
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1Q1
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2Q1
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2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
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The Revenue Review : Advertising2
,00
6
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY
2Q11 2Q12
Core
Advertising
+13%
Core Advertising revenue & % Gross margin
128
175 175 168
130
189213
194
152
212
81%
89%87%
86%
91%88% 87%
89%87% 88%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
0
50
100
150
200
250
300
350
400
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
+39%QoQ
18
9 21
2
2Q11 2Q12
TalentOne
MPIC
CineAd
+13% YoY (+39% QoQ) Core Advertising• Clients are more confident in by-movie ads• Higher growth in personnel product & Automotive
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
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The Revenue Review : Bowling2
,00
6
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY1,
070
878
2Q11 2Q12
256
245
2Q11 2Q12
190 21
9
2Q11 2Q12
118
115
2Q11 2Q12
112 12
9
2Q11 2Q12
242
202
2Q11 2Q12
Bowling Group
-2%
Bowling Group Revenue & % Gross margin
111 104119
133107 118 125
91 101115
35%32% 33% 33%
30% 31%34%
19%
27%
38%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
50
100
150
200
250
300
350
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
+13%QoQ
-2%YoY: revenue stagnant
+13%QoQ: Expansion branch (Mega bangna & Ice skate –sukhumvit)
and closed down 2 branches (Piyarom,Ladprao) effect higher revenue and more margin in 2Q12
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
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The Revenue Review : Retail2
,00
6
1,7
89
2Q11 2Q12
Bt.million
Revenue-11%YoY
2Q11 2Q12
112 12
9
18
2Q11 2Q12
Core Retail
+15%
112 12
9
18
2Q11 2Q12 Core Retail Revenue & % Gross margin
117108 112
103 109 112
130
114
129 129
36% 35% 36% 34%37%
24% 23%18%
24%21%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
0
20
40
60
80
100
120
140
160
180
200
1Q
10
2Q
10
3Q
10
4Q
10
1Q
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2Q
11
3Q
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4Q
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1Q
12
2Q
12
Core Retail revenue +15%YoY: mainly from Metropolis drove up revenue
Core Retail margin QoQ drop from • Occupancy of Metropolis decreased from NANTA contract cancelled• Many Shops under renovation in 2Q12
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
AS
SET
S
AS
SET
S
EQU
ITY
EQU
ITY
B/S Snapshot
End
2Q11YE10 YE11YE0911
END OF
2Q12
0.60
0.51
0.420.36
-0.50
-0.30
-0.10
0.10
0.30
0.50
0.70
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
YE09 YE10 YE11 End of 2Q12
Net interest-bearing debts Equity Net D/E
6,325 6,217
5,0584,836
11,38311,053
Mar 31, 12 Mar 31, 12 Jun 30, 12 Jun 30, 12
Mar 31, 12 Jun 30, 12
AS
SET
S
AS
SET
S
EQU
ITY
EQU
ITY
LIA
BIL
ITIE
S
LIA
BIL
ITIE
S
YE10 YE11YE09END OF
2Q12
0.60
0.51
0.420.34
-0.50
-0.30
-0.10
0.10
0.30
0.50
0.70
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
YE09 YE10 YE11 End of 1Q12
Net interest-bearing debts Equity Net D/E
Bt.million Mar 31, 12 Jun 30, 12 %chg
Assets 11,383 11,053 -3%Liabilities 5,058 4,836 -4%Equity 6,325 6,217 -2%
Net D/E decreased from Bond repayment Bt 500m in Jun 12
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
AS
SET
S
EQU
ITY
LIA
BIL
ITIE
S
Investments Portfoliovs. Interest-bearing debts
12
AS
SET
S
6,325 6,217
5,0584,836
11,38311,053
Mar 31, 12 Mar 31, 12 Jun 30, 12 Jun 30, 12
AS
SET
S
EQU
ITY
LIA
BIL
ITIE
S
• Investment portfolio as of 10th Aug 12:• 66% in M Pictures Entertainment Plc. (MPIC)• 23% in Siam Future Development Plc. (SF) • 33% in Major Cineplex Lifestyle
Leasehold Property Fund (MJLF)• 40% in ThaiTicketMajor Co., Ltd.• 45% in Major Kantana Broadcasting Co., Ltd.• 9.9% in PVR Limited (PVRL)• 49% in PVR blu-O Entertainment Limited• 80% in Talent One Co.,ltd.• 50% in K-Arena
Jun 30, 12
Bt.million
Interest-bearing debts 2Q12
Bank OD & ST loans 1,615
CP of LT borrowings 861
LT borrowings 166
Debentures -
Total 2,643As of 2Q12
Bt.million
Investments %ShareholdingCost per
ShareMarket value*
MJLF 33.0% 10.00 1,394
Siam Future 22.9% 2.15 2,099
MPIC 66.1% 1.55 585
PVRL 9.9% 80.77 248
Total 4,326 *Closing price on Aug 8,2012
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
AS
SET
S
EQU
ITY
LIA
BIL
ITIE
S
Interim Dividend payout
13
AS
SET
S
AS
SET
S
EQU
ITY
LIA
BIL
ITIE
S
Interim dividend of Bt0.39/share
327.4
776.8 802.3
90%
91%
80%
100%
0
200
400
600
800
1,000
FY09 FY10 FY11
Net Profit (Bt.Million) % Dividend Payout
88%
327.4
776.8 802.3
0
200
400
600
800
1,000
FY09 FY10 FY11
Net Profit (Bt.Million)Net Profit (Bt.Million)
327.4
776.8 802.3
90%
91%
80%
100%
0
200
400
600
800
1,000
FY09 FY10 FY11
Net Profit (Bt.Million) % Dividend Payout
88% 1H09 1H10 1H11 1H12
Net Profit (Bt.Million) 25.58 292.69 485.75 450.99
EPS (Baht) 0.03 0.35 0.57 0.51
%Dividend payout - 57 75 77
DPS (Baht) - 0.20 0.43 0.39
Dividend payment is about Bt 345 millionon Sep 11, 2012327.4
776.8 802.3
0
200
400
600
800
1,000
FY09 FY10 FY11
Net Profit (Bt.Million)Net Profit (Bt.Million)
FY09 FY10 FY11
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
GROWTH POTENTIALS
LIFESTYLEentertainment
Quarterly Briefing
2Q12
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
GROWTH POTENTIALSFY12 Strategic Focus LIFESTYLEentertainment
15
Main concept still remain - Continue growth with more screens, higher ATP and convert to Digital’s format theme
• Improve ticketing convenience to both increase customer satisfaction and encourage pre-bookings i.e. Counter and Internet Services
• Maximize M-Gen campaign to increase customer loyalty and regular communications to customers
• Increase quality of Digital theatres and maximize 3D films to increase ATP and more advertising is coming
• Department store expansion with Department stores and Hyper Markets to additional provinces
• Customer lifestyle supports our Loyalty program (MGen) which has been tremendously successful (1.6 million members and growing)
• More focus on optimizing returns from existing assets, given the solid film line-up and Major’s increased market penetration
• Driving same store growth for higher revenues and yields• Focus on optimizing multi-tier pricing• Increase cinema occupancy• Further expansion into India while exploring other International markets
Strategic Investment: Lifestyle Mall Investment
Rapid and economical expansion arm without zoning limitation Neighborhood Center / Stand-Alone Retail Store / Lifestyle center / Entertainment Center
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
GROWTH POTENTIALSFY12 Blockbuster Highlight LIFESTYLE
entertainment
1Q12ATM Er-Rak-Eror
SKS Sweety
Valentine Sweety
John Carter
Real Steel
Ghost rider2
2Q12The Avengers
Battleship
Snow White and the Huntsman
Men In Black 3
Wrath of Titan
I Miss U
3Q12The Dark Knight Rises
The Amazing Spider-Man
Step Up Revolution
Rak-7-Pee
Total Recall
Resident Evil 5
4Q12007 Skyfall
The Twilight Saga : Breaking Dawn2
The Hobbit
Naresuan 5
Rise of the Guardians
YAK
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
GROWTH POTENTIALSCapacities LIFESTYLE
entertainmentAs of Aug 2012
FY10 FY11 FY12 FY13Screens 361 383 32 95
BKK & Vicinity 252 259 IKEA 15 Bangyai 5
Bangkae 10 Emporium 2 8
TBA 5
Provincial 109 124 Ubonratchathani 2 Maesod 4 Additional screens Roi-Et 5
Bangna 1 Nongbualumphu 4 Additional screens Prachinburi 4
Udonthanee 4 Nakornsawan 4 Additional screens Ubonratchathani 7
Suratthani 7
Klaeng 4
Satun 4
Hatyai 10
Chiangmai 2 11
TBA 13
Lanes 504 506 196
BKK & Vicinity 386 386 IKEA 24
Bangkae 16
Provincial 94 94
International 24 Vasant Kunj26 Bangalore 60
Pune 36
Mumbai 12
Raja Garden 22
Chandigarh 26
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
GROWTH POTENTIALSM Generation LIFESTYLE
entertainment
190.5
3.1
4.7 3.3
11.7
Jan Feb Mar Apr 1Q11
• Loyalty card to customers• Customer insights & Direct marketing channel for MAJOR
to drive same-store growth
Total 1,609,895 members
79.3Bt.million
As of Aug 8th 12
Ratio M Gen Card : Regular & Student
46.8%53.2%
RegularStudent
**0.4m members (Bt 22m) for Y2012
2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment
MAJOR CINEPLEX GROUP PLC.
LIFESTYLEentertainment
Thank You
Quarterly Briefing
2Q12