Listed and traded on the Indonesia Stock Exchange STOCK CODE: BMTR MNCN MSKY MNC Media PT Global Mediacom Tbk. PT Media Nusantara Citra Tbk. PT MNC Sky Vision Tbk. Corporate Update February 2015 Disclaimer 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. 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The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. 2 Section 1 MNC Media Corporate Structure MNC Media Corporate Structure Global Mediacom Tbk 64.7% Content and Advertising Based Media Subscription Based Media 73.0% Media Nusantara Citra Tbk MNC Sky Vision Tbk Online Media 100% PT MNC Kabel Mediakom 4 Section 2 Indonesia’s Media Industry Update Macro drivers support industry growth Population (2013) A Young Population : 80% - Below 50yr What are the macro drivers? 3% Millions A large & young population 13% 1.361 29% 1.236 200mn people below age of 50 A rising middle class 248 97 71 Strong economic growth driven 29% 30 23 5 by domestic consumption 26% 0-14 Source: MPA 2013 30-49 50-69 Source: Indonesia Bureau of Statistics 2012 Completed Education Level NA 22% 15-29 University 4% Monthly Household Expenditure (Rp1,000) E <600 5% Academy 3% D 601900 13% A1 3500 6% A2 25013500 9% Senior High 29% Only 4% of population has university degrees Indonesians prefer to watch TV than to read, watching 5 hours of TV per day. C1 12511750 26% Junior High 19% Source: Indonesia Bureau of Statistics 2012 40mn TV household B 17512500 20% C2 9011250 21% Elementary 23% 70+ Source: Nielsen Media Research 6 Indonesia net ad spend growth highest in the region Media Partners Asia forecasts net ad spend growth of 15.5% in 2014 Growth is among the highest in the region Indonesia’s ad spend is growing from a small base; we expect growth to be sustainable Asia Pacific Net Adspend (2013 – 2014F) Asia Pacific Net Adspend Growth (2013-2014F) 2013 2014F In USD billion 2013 2014F Source: Media Partners Asia 2014 7 Well Positioned in a Conducive Growth Environment Net ad spend 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 countries Net Adspend as a Percentage of GDP (2013) 30 seconds prime time spot In USD/spot 0,9% $17.136 0,7% 0,7% 0,6% 0,6% $10.800 0,5% 0,4% 0,4% 0,4% 0,3% 0,3% 0,3% 0,3% 0,2% $5.400 Indonesia Thailand Philippines Source: Media Partners Asia 2014 8 Industry Dynamics 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 Limited supply: Only 10 FTA TV stations Demand (More brands advertising on TV) 3% 13% 35% 21% MNCN SCMA VIVA TRANS METRO 27% Source: Nielsen Prime Time all demographic January 2015 9 Low Penetration Rates in Key Segments Asia Pacific TV Penetration of Total Households (2012-2014F) 100% 100% 100% 99% 100% 100% 100% 100% 96% 96% 99% 99% 97% 97% 97% 97% 93% 93% 85% 86% 82% 84% 61% 62% 58% 60% 2012 2014F Korea Japan Singapore Hong Kong Malaysia Australia Newspaper Circulation in Indonesia 6,0 Millions China Thailand Taiwan Vietnam Philippines India Indonesia Internet Household Penetration in Indonesia 6,0 30,2% 27,1% 5,9 23,7% 5,8 18,0% 20,5% 5,7 2010 2011 Source: Media Partners Asia 2012 2013 2014 2010 2011 2012 2013 2014 10 Indonesia’s Media Advertising Market Share Given the infrastructure constraint, TV is the only medium to reach a mass audience. TV advertising is expected to maintain a dominant market share Online advertising to take market share from Newspaper and Magazine 2019F 2014 OOH; 2,2% Radio; 1,3% OOH; 2,0% Online/Mobile; 7,3% Radio; 1,1% Online/Mobile; 10,5% Magazines; 2,6% Magazines; 2,4% Newspapers; 20,4% Newspapers; 18,2% TV; 65,8% TV; 65,5% Source: Media Partners Asia 11 Section 3 MNC Update The Largest Integrated Media Company in Southeast Asia Free-To-Air TV Content Sindo Media Others News Portal Tabloid & Magazine PAY TV Channels Radio More channels will be added Content library contains more than 200,000 hours and increasing by more than 15,000 hours per year 13 Our 4 Key Growth Drivers RCTI, MNCTV, and Global TV grow significantly outperforming the industry 19 exclusive channels on MNC Sky Vision to generate ad revenue SINDO TV to become a national network with focus on news and infotainment Integrated TV studios to be completed in mid 2015 is set to reduce programming and operation cost 14 Content is King Creating the best content is our top priority 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 200,000 hours of content library and increasing by more than 15,000 hours annually We also have 20 MNC branded Pay TV Channels. These channels are integral to our content strategy “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 Primetime Nielsen TV stations ranking Rank 1 2 3 4 5 6 7 8 9 10 Station RCTI ANTV SCTV IVM MNCTV TRANS TRANS7 GTV TVONE METRO Target Audience ABC ABC ABCD ABCD ABCD ABC ABC ABC ABC AB Januari 2015 Share 21.4 16.8 16.3 10.3 7.6 6.8 6.5 6.0 4.2 2.5 Source: Nielsen Monthly Prime Time All Demographic Audience Share 15 Strong recovery in Audience Share since June 2014 40 35 30 MNCN EMTK 25 VIVA TRANS 20 15 10 Jan-14 Feb-14 Mar-14 Source: Nielsen prime time audience share Apr-14 Mei-14 Jun-14 Jul-14 Agust-14 Sep-14 Okt-14 Nop-14 Des-14 Jan-15 16 RCTI’s Prime Time is back to No. 1 Launched of 7 Manusia Harimau in Nov’14 24,0 22,0 20,0 18,0 RCTI SCTV 16,0 Plot Twist on Main Character and More Innovative story line 14,0 12,0 10,0 Jan-14 Feb-14 Mar-14 Source: Nielsen prime time audience share Apr-14 Mei-14 Jun-14 Jul-14 Agust-14 Sep-14 Okt-14 Nop-14 Des-14 Week I Jan 2015 17 MNC TV is Gaining Back Audience Share 15,0 14,0 Started airing Boboi Boy in Oct 20th 2014 Adit & Sopo Jarwo Audience share has increased drastically to 19.4% since moving to early Prime-Time. 13,0 12,0 MNC TV 11,0 IVM 10,0 9,0 8,0 7,0 Apr-14 Mei-14 Source: Nielsen prime time audience share Jun-14 Jul-14 Agust-14 Sep-14 Okt-14 Nop-14 Des-14 Jan-15 18 Key Drama Series on RCTI 19 In-House Production 20 MNC Has The Best Talent Search Format Lineup 21 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 Sports Movies Lifestyle News Entertainment Kids Local content means it is the leader in its Pay TV category 22 Top 20 Most Watched Channels January 2015 NO. CHANNEL NO. CHANNEL 1 CARTOON NETWORK 11 MNC ENTERTAINMENT 2 CBEEBIES 12 FOX CRIME 3 MNC SPORTS2 13 MNC SPORTS1 4 S-ONE 14 MNC Comedy 5 DISNEY CHANNEL 15 VISION 2 DRAMA 6 DISNEY JUNIOR 16 MNC KIDS 7 MNC INFOTAINMENT 17 MNC NEWS 8 MNC SHOP 18 HBO Hits 9 FOX MOVIES PREMIUM 19 MNC MOVIE 10 MNC MUSLIM 20 NGC Wild Source: AGB Nielsen Report 23 Pay TV Channels to drive ad revenue for MNCN OPPORTUNITIES MNC Channels share of Pay TV audience in January 2015 MNCN has produced and packaged 20 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 are # 1 ranked in their respective categories versus International peers MNC Food & Travel and MNC Kids was recently launched. We will add 2 more channels: MNC Home & Living and MNC Wedding Rank Sports Channel Channel Share Rank News Channel 1 MNC Sports2 7.1% 1 MNC NEWS 2.0% 2 MNC Sports1 2.4% 2 Fox News 0.2% 3 FOX Sports 1.7% 3 CNN INTERNATIONAL 0.2% 4 Golf Channel 0.7% 4 BBC 0.0% Rank Lifestyle Channel Channel Share Rank Music Channel We expect MNC Channels to generate meaningful advertising revenue as subscribers grow 28% Channel Share 1 MNC Infotainment 3.7% 1 MNC Music Channel 0.9% 2 MNC Life Style 1.4% 2 Channel V 0.3% 3 MNC Food Travel 1.0% 3 Trace 0.1% 4 MNC Home And Living 0.4% 4 I-Concerts 0.1% Rank Entertainment Channel Channel Share Rank Business Channel Channel Share Channel Share 1 S-One 4.6% 1 MNC Business 1.6% 2 MNC Entertainment 2.7% 2 Bloomberg 0.0% 3 FOX Crime 2.4% 3 CNBC Asia 0.0% 4 MNC Comedy 2.3% Source : Nielsen TV Audience Measurement 2015 MNC Channels Rest of market 72% 24 SINDOTV has full national coverage Sabang Banda Aceh Lhokseumawe Medan Pematang Siantar Tarakan Batam Pontianak Pekan Baru Payakumbuh Bukit Tinggi Padang Samarinda Bengkulu Lubuk Linggau Lampung Pangkal Pinang Palangkaraya Banjarmasin Palembang Jakarta Cirebon Semarang Bandung Tasikmalaya Banyumas Magelang Manado Gorontalo Ternate Manokwari Palu Biak Mamuju Pleihari Makassar Kendari Nebire Ambon Merauke Surabaya Bali Mataram Kupang Total : 46 stations • MNC has just acquired a local Jakarta TV giving us full national coverage on SINDOTV • The focus will be 24 hours news, entertainment and sports 25 Highly Qualified and Experienced Management Team Hary Tanoesoedibjo CEO, MNC Group 21 years of relevant experience Kanti Mirdiati Imansyah Director 23 years of relevant experience Faisal Dharma Setiawan CFO 25 years of relevant experience Diana Airin Director 14 years of relevant experience Group President & CEO of MNC since March 2004 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 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 Independent Advisor - Business Solutions & Strategy for life and health insurance & Bank in 2013 Chief Executive Officer in PT Asuransi Jiwa Adisarana WanaArtha in 2012 Vice Chief Finance Officer – Strategy & Finance in PT Bank CIMB Niaga Tbk. in 2009 Commissioner in PT CIMB Sunlife in2009 Commissioner in PT Asuransi CIGNA in 2009 Director of Indo Kordsa Pension Fund (DPPK) in 1996 Graduated from Prasetya Mulya, 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 President Director of PT. Media Nusantara Informasi, PT. MNC Networks (Radio), & PT. Cross Media International (Media Buying Agency) since 2013 Director of Sales Marketing of Seputar Indonesia, SUN TV, High End & High End Teen, and Network Magazine in 2010 Bachelor Degree of Economy – Management from Tarumanegara University 26 Highly Qualified and Experienced Management Team Ella Kartika Director 27 years of relevant experience Gwenarty Setiadi Director 27 years of relevant experience Charlie Kasim Independent Director 12 years of relevant experience 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 Director of Human Resources and General Services in PT MNC Sky Vision Tbk in 2009 General Human Manager Human Resources and General Services in PT Media Nusantara Citra Tbk in 2008 Vice President (VP), Human Resources and General Services in Citibank in 2007 Vice President (VP), Head of Direct Sales Training Academy & HRRM in Citibank in 2005 Vice President (VP), Outsourcing Management Head in Citibank in 2004 Assistant Vice President (AVP), Sales Human Resources and Compliance Manager in Citibank in 2000 Manager, Sales Recruitment and Training Manager in Citibank in 1998 Graduated from University of Satya Wacana with Bachelor degree in Agronomy in 1982 Deputy Finance and Technical Director in PT Rajawali Citra Televisi Indonesia in 2013 Finance Director, Technical Director, Operational Director and Head of Procurement of PT Cakrawala Andalas Televisi (ANTV) in 2011 Chief Finance Officer in PT. Visi Media Asia Tbk (VIVA) in 2007 Finance/HR/Sales Director & CEO at PT. Viva Media Baru (Previously vivanews.com, now VIVA.CO.ID) in 2008 Finance Director and Head of Procurement at PT. Lativi Media Karya (tvOne, previously known as Lativi) in 2007 Operational Director at PT. Fajar Bumi Sakti (coal mining company based in East Kalimantan) in 2005 Commissioner of PT. Bakrie Swasakti Utama (Bakrie real estate company handling Taman Rasuna Apartement, Pasar Festival and Klub Rasuna) in 2003 Vice President for Collection of PT. Bakrie Finance Corporation Tbk in 2002 Obtained MBA in Finance from University of Houston in 1997 27 Section 4 Financial Update Media Nusantara Citra Financial Performance from 12M 2011 until 12M 2013 12M 2011 to 12M 2013 Financials IDR trillion 2011 2012 2013 CAGR +5% CAGR +6% CAGR +10% 8,80 6,26 5,39 8,96 9,62 6,83 6,52 7,29 7,74 CAGR +23% 1.79 Revenue 2,38 2,72 EBITDA Asset Equity 12M 2011 to 12M 2013 Solvency Metrics 2011 55.83x 2012 2013 66.23x 47% 33% 30% 20% Debt / EBITDA Source: Company Financials 12% 10% 7% Debt / Equity 38% 42% 46% 40% 43% 51% 50% 52% 11.66x EBITDA / Interest EBITDA Margin 3 TV EBITDA Margin RCTI EBITDA Margin 29 MNCN (RCTI+GTV) vs. SCMA (SCTV+Indosiar) (In million Rupiah) Revenue RCTI GTV Total SCMA 3Q 2013 3Q 2014 YoY 799,032 198,560 997,592 913,015 897,402 201,368 1,098,770 945,836 12.31% 1.41% 10.14% 3.59% • More appropriate to compare RCTI + GTV with SCMA which only has 2 TV stations • We have outperformed the industry in growth and margins. Core EBITDA RCTI GTV Total SCMA 387,738 59,927 447,665 445,538 460,343 63,152 523,495 405,117 18.73% 5.38% 16.94% -9.07% EBITDA margins RCTI GTV Total SCMA 48.53% 30.18% 44.87% 48.80% 51.30% 31.36% 47.64% 42.83% 277 118 277 -597 • RCTI is by far the most dominant TV station in Indonesia, it’s EBITDA alone is bigger than our competitor. MNCN is undervalued, trading at 30% discount to our competitor. The analysis above does not take into account earnings from MNC TV, Sindo TV, and 19 Pay TV channels. 30 Summary of Financial Performance FY 2012 & 2013 – 9M 2013 & 9M 2014 IDR billion 12M 2012 12M 2013 %chg 9M 2013 9M 2014 %chg 6,265 6,522 4% 4,749 5,044 6% Advertising 5,351 5,720 7% 4,373 4,680 7% Advertising excluding Euro Cup 5,188 5,720 10% - - Content 197 267 36% 76 145 Value Added Services 216 0 -100% - - Others 500 536 7% 301 219 -27% Operating expenses 4,050 3,962 -2% 2,984 3,132 5% Core EBITDA 2,375 2,721 15% 1,883 2,041 8% Core EBITDA Margin 38% 42% 40% 40% Net Income 1,657 1,691 1,270 1,389 Revenue 2% 92% 9% 31 MNC Commands Highest Power Ratio Channel RCTI MNCTV GTV MNC Group SCTV IVM EMTEK Group Trans Trans7 Transcorp ANTV TVOne VIVA Group Metro TVRI1 Others Grand Total ADEX Nett Estimation Q3 2014 Revenue (in IDR billion) Revenue Audience 2013 2014 Growth Share Share 799 897 12% 23% 15% 434 391 -10% 10% 8% 200 201 1% 5% 6% 1.433 1.489 4% 39% 30% 657 602 -8% 16% 18% 213 320 50% 8% 12% 870 922 6% 24% 30% 425 390 -8% 10% 9% 579 280 -52% 7% 8% 1.004 670 -33% 17% 17% 150 340 127% 9% 13% 154 225 46% 6% 6% 304 565 86% 15% 18% 135 175 29% 5% 4% 7 9 24% 0% 2% 142 184 2% 5% 5% 3.753 3.830 2% 100% 100% Source : AGB Nielsen Arianna / Annual Report IDX & Adex Nett Assumption Q3 2013-2014 (In Billion) Power Ratio 1,5 1,2 0,9 1,3 0,9 0,7 0,8 1,2 0,9 1,0 0,7 1,0 0,8 1,3 0,1 0,9 1,0 • Despite soft audience share MNC group still holds the largest advertising Market share at 39% with a 1.3 Power Ratio 32 Strong revenue growth with increasing EBITDA Margins Room For Further Margins Improvement 47.0% - 48.0% 41,7% ~42.0% 2013A 2014E 37,9% 33,2% 2011A Source : Company information 2012A 2017E 33 Section 5 Indonesia’s Pay-TV Industry Update Indonesia’s Pay TV Subscriber Trend Indonesia’s pay TV market is estimated to reach 8.7 million subscribers by 2020, equaling to only 21% of TV households Almost 3x the size of 2012 In thousand subscribers 10000 SUBS 21% %Pen/TVHH 20% 19% 9000 20% 18% 16% 8000 17% 14% 7000 22% 15% 12% 12% 6000 9% 10% 7% 5000 7% 5% 4000 3% 2% 1% 1% 3% 7.687 2% 8.221 8.691 7.065 1% 6.340 3000 5.471 4.376 2000 2% -1% -3% 3.118 2.442 1000 0 5% 265 317 465 650 749 2004 2005 2006 2007 2008 873 1.132 2009 2010 1.676 -6% -8% 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E Source: Media Partners Asia 2013 35 Well Positioned in a Conducive Growth Environment Asia Pacific’s Pay TV subscribers (2013) Asia Pacific’s Average Pay TV Monthly ARPU (2012) In USD In thousand subs 60,0 54,1 50,0 1.194 IPTV Cable 40,0 Satellite 33,6 30,0 880 30,0 131 5.149 5.989 122 5 305 20,0 3.330 785 3.265 29 610 1.089 44 16,1 12,5 1.385 2.808 1.571 18,8 894 1.523 477 10,0 33 827 398 536 8.0 8,0 4,6 4,2 3,4 - Source: Media Partners Asia 2013 36 Indonesia’s Pay TV Market Has Huge Potential Indonesia has the lowest pay TV penetration rate of TV household in the Asia Pacific (2013) 120% 100% 100% 86% 80% 80% 66% 60% 51% 49% 40% 28% 20% 11% 9% Philippines Indonesia 0% Korea Hongkong India Singapore Malaysia China Thailand Indonesia has the highest projected pay TV subscriber growth in the Asia Pacific (CAGR 2012-2016E) 30% 28% 24% 25% 20% 20% 20% 18% 18% 13% 15% 10% 6% 3% 5% 1% 0% Indonesia Thailand Source: Media Partners Asia China India China PHP Korea Malaysia Singapore HK 37 Strong Market Position with Superior Content Capabilities Total subscribers (in thousands) Company Milestones 3000 Sept 2014 Total subscribers = 2.53 million 2,528 2500 2,300 2000 1,720 1500 1,163 1000 July 2012: IPO @ Rp 1,520/shr 2011: MPEG 4 rollout 2009: Launched of Indostar II satellite; migrated subscribers to Galaxy and Venus packages 2008: Introduced Top TV to target low/middle class Opened sales and services offices in 43 cities 805 604 500 479 9 0 28 30 56 109 192 306 2007: Introduction of set top box subsidy 2006: Name change to MNC Skyvision 2001: Acquired 51% of Indovision and became major owner. Less than 30k subscribers 38 Our 3 Most Important Competitive Advantages 122 channels with 34 exclusive channels; 20 MNC branded channels The only provider that owns satellite with S-band technology Has 100 branches across Indonesia 39 Reliable Nationwide Coverage via S-Band S-Band DTH Broadcasting Capability Holds exclusive license for broadcasting using Sband spectrum Clear reception and resilience to heavy rainstorms that are common in Indonesia C-band or Ku-band used by competitors more susceptible to service outages from rain fade Complete coverage of Indonesia’s 13,700 islands, over 9.8 million square kilometers Higher EIRP1 enables smaller reception disk compared to C-band Best-in-class technology and exclusivity of Sband provides competitive advantage DTH Transmission Process 1. Effective Isotropic Radiated Power 40 Large, Diversified, In-House Distribution Network Network of 100 Branch Offices Across Indonesia Majority of new customers are sourced through in-house channels, Greater control, lower commissions and stringent customer verification Branch office Sulawesi Kalimantan Papua Sumatera Sumatra Maluku Java Competitors rely primarily on external dealers for subscriber acquisition About 82% of New Subscribers Are Acquired Through In-House Channels D2D Call Center Sub-get-Sub 82% Stores Club Dealers Corners 18% 41 MNC Sky Vision has 74% Pay TV market share 2013 2012 Aora 7,0% Nexmedia 2.0% Nexmedia Aora 3.0% 2.0% First Media 10.0% Others 1,0% First Media 10,0% Indovision 38,0% TelkomVision 9,0% Orange 3.0% Indovision 38.0% TelkomVision 8.0% OkeVision 11.0% OkeVision 9,0% Top TV 24,0% Top TV 25.0% MNC Sky Vision has increased market share from 71% to 74% in 2013 despite entrants of new competitors TelkomVision and Aora are losing market share Rumors of Orange selling BPL rights 42 Section 6 Financial Update MNC Sky Vision Financial Performance from FY2011 until FY 2013 FY 2011 to FY 2013 Financials IDR billion FY 2011 Audited FY 2012 Audited FY 2013 Audited CAGR +31% 5.936 4.939 CAGR +35% CAGR +32% 3.020 3.448 CAGR +29% 2.394 2.261 1.738 728 Revenues 1.002 1.214 1.746 958 Adjusted EBITDA Total Assets Equity FY 2011 to FY 2013 Solvency Metrics FY 2011 Audited FY 2012 Audited FY 2013 Audited 5,51 4,49 3,55 2,35 2,31 1,55 1,75 1,63 0,69 Debt/EBITDA Source: Company Financials Debt/Equity 42% EBITDA/Interest 42% 40% EBITDA Margin 44 Segmental Overview - Revenue 12M 2012(Audited) 12M 2013 (Audited) 3% 5% 0% 5% 3% 3% DTH-Digital DTH-Digital Commercial Sales Commercial Sales TV Ad Sales TV Ad Sales Others Others 92% 89% * Other Revenues are decoder sales, sale of ODUs & ancillary as well as share of revenues. 45 Summary of Financial Performance FY 2012 & 2013 – 9M 2013 & 9M 2014 IDR billion 12M 2012 12M 2013 %chg 9M 2013 Revenue 2,394 3,020 26% 2,230 2,436 9% Operating Expenses 1,898 2,580 36% 1,865 2,256 21% Total EBITDA 1,002 1,214 21% 919 919 0% Total EBITDA Margin 42% 40% 41% 38% 82 (487) (223) (28) Net Income -695% 9M 2014 %chg 87% 46 Highly Qualified and Experienced Management Team Bambang Rudijanto Tanoesoedibjo President Director Handhi S. Kentjono Vice President Director David Wongso Human Resources & General Services Director President Director of MNC Sky Vision since 2004 Currently held several important positions such as the President Commissioner of PT MNC Asset Management, Vice President Commissioner of PT Global Mediacom Tbk, Commissioners of PT Dos Ni Roha, PT Bhakti Investama Tbk, and PT Rajawali Citra Televisi Indonesia. MBA degree from University of San Francisco, San Francisco, USA Bachelor of Commerce from Carleton University, Ottawa, Canada Vice President of MNC Sky Vision since 2006 and also Director of Mediacom since 2009. Previously worked in Goldindo International Group as Marketing Director and for over seven years with Rimba Group. Served as a President Director and founder of Jakarta Institute of Technology from 2001 to 2003. Received an award from the Institute for Transportation Research and Education, NC State Raleigh-Durham in 1995 and Truman Scholarship Award in 1986. MBA degree in Business Administration from Montana University, Montana in 1991 PhD from Montana University, Montana in 1993 Director of MNC Sky Vision since November 2014. Previously worked at PT Napan Persada and honey Lady Group as the Chief of Human Resources Officer. Held several related positions at PT Gajah Tunggal Tbk., Charoen Pokphand Grup, Bank ABN AMRO, and other companies. Obtained MM program from IPMI Business School and MBA from Monash University in 2006. Graduated from Universitas Padjajaran, Bandung, Indonesia in 1994. 47 Highly Qualified and Experienced Management Team Salvona Tumonggor Situmeang Operational Director Dhini Widhiastuti Marketing Director Director of MNC Sky Vision since 2009 Held several related position at MNC Sky Vision from 2005 Graduated from Universitas Sumatera Utara, Medan, Indonesia in 1991, majoring in Accounting Director of MNC Sky Vision since 2013 Previously held position as General Manager of Marketing since 2005 Previously worked as Account Director in PT Kreatif Senterindo, Account Director in PT DDB Indonesia, Account Director in PT Pamungkas Pariwara, Associate Account Director in PT Mitraguna Adikriya, Account Manager in PT Leo Burnett Kreasi Indonesia, and PR Executive PT Komunikasi Cergas Ilhami. Graduated from Akademi Sekretariat Tarakanita in 1994 Effendi Budiman Non Affiliated Director Finance Director of MNC Sky Vision since 2012 Previously held several positions within Bhakti and MNC Group such as Finance Director of PT Infokom Elektrindo, Deputy CFO of PT Global Mediacom Tbk, Finance Director of PT Nusantara Vision, Director and Corporate Secretary of PT Bhakti Capital Indonesia Tbk. Previously worked at Bank Central Asia and ABN Amro Bank. MBA degree from University of Texas, Arlington – Texas, USA in 1992 Bachelor of Finance from Louisiana States University, USA in 1990 48 Highly Qualified and Experienced Management Team Hary Tanoesoedibjo CEO, MNC Group 21 years of relevant experience Handhi S. Kentjono Director 21 years of relevant experience Indra P Prastomiyono Director 21 years of relevant experience Group President & CEO of PT Global Mediacom Tbk since 2002 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 Media Nusantara Citra Tbk. since 2004, 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 Director of Mediacom since 2009 and also a Vice President of MNC Sky Vision. Previously worked in Goldindo International Group as Marketing Director and for over seven years with Rimba Group. Served as a President Director and founder of Jakarta Institute of Technology from 2001 to 2003. Received an award from the Institute for Transportation Research and Education, NC State Raleigh-Durham in 1995 and Truman Scholarship Award in 1986. MBA degree in Business Administration from Montana University, Montana in 1991 PhD from Montana University, Montana in 1993 Director of Mediacom since 2008 Previously worked in Citibank Indonesia for 8 years with positions as Credit Risk Operations Director (4years) and Human Resources Director (4 years), Principal Consultant at Pricewaterhouse Coopers and General Manager Training & Development in PT Excelcomindo Pratama Tbk. Also a “Research Associate” in the Notredame Dave University in 1993-1994 and as a Lecture of the Institute PPM fro more than 8 years. Currently, a speaker at several seminars, particularly in the areas of leadership and human resources. MBA degree in Marketing from Strathclyde Graduate Business School, Scotland, Britain 49 Highly Qualified and Experienced Management Team Oerianto Guyandi CFO 21 years of relevant experience David Fernando Audy Director 8 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 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 50 Section 7 Financial Update Global Mediacom Financial Performance from 12M 2011 (Audited) until 12M 2013 12M 2011 to 12M 2013 Financials 2011 IDR trillion 2012 2013 CAGR +18% 21,07 19,99 CAGR +18% 8,93 CAGR +11% 15,11 14,3 13,35 10,82 10,02 7,16 Revenue Asset Equity 12M 2011 to 12M 2013 Solvency Metrics 1,13 1,02 2011 2012 2013 0,9 22% 24% 36% 32% 11.03 7.50 Debt/EBITDA Source: Company Debt/Equity 38% 38% 9.84 EBITDA/Interest EBITDA Margin 52 Segmental Overview – Revenue Revenue 12M 2012 Revenue12M 2013 1% 5% 1% 30% Content and advertising based media 5% 27% Content and advertising based media Subscribers based media Subscribers based media Media Support and Infrastructure Media Support and Infrastructure Others Others 64% 67% 53 Segmental Overview – EBITDA EBITDA 12M 2012 EBITDA 12M 2013 0% 0% 1% 0% 30% Advertising based media & Content 29% Advertising based media & Content Subscriber based media Subscriber based media Media Support and Infrastructure Media Support and Infrastructure Others Others 70% 70% 54 Summary of Financial Performance FY 2012 & 2013 – 9M 2013 & 9M 2014 IDR billions Revenue Advertising Revenues Subscribers based media Online Based Media/Games Media Shopping Content and Channel Others Operating expenses Core EBITDA Core EBITDA Margin Net Income 12M 2012 12M 2013 %chg 9M 2013 9M 2014 %chg 8,925 10,020 12% 7,325 8,007 9% 5,406 5,715 6% 4,323 4,648 8% 2,392 3,018 26% 2,230 2,436 9% 142 287 102% 234 415 77% 24 85 254% 62 81 31% 141 164 16% 14 66 371% 820 751 -6% 462 361 -22% 6,280 7,163 14% 5,303 6,064 14% 3,394 3,828 13% 2,726 2,844 4% 38% 38% 37% 36% 1,299 620 632 690 -52% 9% 55 Section 8 New Media PLAYMEDIA – FIBER TO THE HOME TECHNOLOGY 1,000,000 homes pass under construction in 6 Big Cities Speed – Ultra Speed Internet up to 200 Mbps equal for both upload and download Reliability – Stable Connection supported by Full-Fiber To The Home Network Content – Offers 122 pay-TV channels including 34 exclusive channels; 20 of which are MNC branded channels Features – Unique Interactive Features such TV on Demand, Time Shift, Network Personal Video Recording (NPVR), Android STB Play Media to be a disruptive force – Existing competitors cant match these offerings 57 ONLINE MEDIA – EXCITING OPPORTUNITIES Letang (www.joymeng.com) a fast growing mobile games company in China. It’s latest casual mobile games Bonnie Bear has achieved more than 160m downloads in since its launch early 2014 and its 2nd game Armour Heroes has received more than 20m download in just 2 months. We Chat is a social media platform that supports sending voice, video, photo and text messages. We Chat Indonesia currently is installed in over 50% of all smartphones in Indonesia. Okezone.com is an online portal of news and entertainment focusing on Indonesian readers both in the homeland and those living abroad. Currently www.okezone.com receives around 2 mio unique daily visitors. MNC Shop, Joint Venture with GS Home Shopping No.1 Home Shopping Channels. The first 24 hours integrated TV and online shopping service in Indonesia. Moviebay is a paid online video streaming service from Indonesia which offers a rich library of movies and video content. 58 Very excited about China Mobile Games Bonnie Bears Crayon Shin Chan Armour Heroes Over 234 million unique user since early 2014 Expect $45 million in gaming revenue for 2014, 5x of 2013 Letang is 51% controlled by MNC Media Investment Ltd, which is listed on the ASX. MNC Media Investment is 87% owned by Globalmediacom 59 MNC TV Building of new buildings to integrate 3 TV stations RCTI Global TV MNC News Center 60 Thank You
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