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Corporate Update – August 2020
Listed and traded on the Indonesia Stock Exchange | STOCK CODE: MNCN
PT Media Nusantara Citra Tbk
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MNCN Key Investment Highlights
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1. GDP hit more than $1trillion
for the first time in 2018 with annual
growth rate between 5-6%.
2. Large population of 270 million
people, growing by 3-4 million people
every year for the next 15 years.
3. Significant upside potential for adspend growth since adspend to GDP ratio is
only 0.2%, one of the lowest in Asia.
4. Adspend on National FTA and digital will grow from 80% to close to 90% of the
national adspend in the next 3-4 years.
5. Four National FTA
with the largest audience share of 40% and adspend share of 45%.
▸40% audience shares translate to more than 100 million viewers daily, the largest in the country even if it’s compared to any social media platform.
▸Launched its streaming (OTT) service called RCTI+.
6. The Largest Content Production
of 23K hours yearly in long, mid and short formats:
▸40% market share in drama or close to 5,000 hours of drama production yearly.▸80%+ market share in talent search & animation.
7. The Largest Library
with more than 300K hours,
consisting of more than 60% non
news content.
8. The Largest Talent Management
with close to 400 talents under
management with 5 + 5 years option to
extend.
9. Started MCN (Multi Channel Network) on YouTube in August 2019 and generating
1.63billion views and 11million subscribers in just a month. Including MNCN Channels on
Youtube, the total number of views reached 24.1billion in a 12 month span (FY-2019),
with 97 million subs by the end of July 2020.
10. Owning the largest sites called Okezone (#1 above Google #2) and Sindonews (#6)
based on Alexa measurement.
▸Okezone has more than 20 million UV daily▸Okezone is ranked #24 globally.
11. Strong growth in digital advertising revenue
▸Derived from mobile apps, general/news portal, YouTube revenue share▸Excluding future digital revenue from RCTI+ and MCN.12. Strong growth in Non Time
Consuming Ads (NTC Ads) in the
form of built in, virtual and squeeze
frame as well as equity link.
13. FY-2019 financial performance:
▸YoY revenue to $600mn, up 12%▸YoY EBITDA to $267mn, up 17%▸YoY profit to $169mn, up 47%
14. Fast growing digital and content revenue:
▸In FY-2019, growing by 37% YOY, contributing more than 25% of the total revenue.▸Projected to contribute more than 40% in 2022 and more than 50% in 2024.At 15x P/E multiple, stock price is equivalent to Rp2,500.
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Macro Drivers Support Industry Growth
270
108 96 69 32 6
1.119.000
376.000
262.000 543.650
364.702 372.063
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200.000
400.000
600.000
800.000
1.000.000
1.200.000
0
50
100
150
200
250
300
Indonesia Philippines Vietnam Thailand Malaysia Singapore
Population US$ Real GDP
A large & young population, 226mn people below age of 54; growing by 3 to 4 Million people every year for the next 15 years.
A rising middle class group will grow the advertising expenditure in line with GDP growth
A stronger growth will be driven by more robust private investment activities and acceleration of infrastructure development
Population & Real GDP (US$) (2019)
5 4,9 5 5,1 5,2 5
1,8
6,3 5,6 5,2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Indonesia Growth of Real GDP (%)
25%17%
42%
9% 7%
0 - 14 15 - 24 25 - 54 55 - 64 65+
What are the macro drivers ?
A Young Population (2019)
Source : Worldbank.org
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The Largest Integrated Media Company in Southeast Asia
ProductionEntertainment 5 in 1 Entertainment App
Content LibraryTalent Management
Social Media/ Others
Public 43.72%56.28%*
Free To Air / TV Content & IP Digital
Information and sports
Entertainment FTA focusing on family audience
Largest news TV and providenews programs to the
Group’s 3 entertainment FTA
The biggest talent management company
supported with music label and publishing unit
• Video Streaming• News Aggregator• Audio Aggregator• User Generated
Content (UGC)• Games Aggregator
• Youtube & Facebook channels
• MCN• News & General
Portals
Content library contains more than 300,000 hours and
increasing by more than 23,000 hours per year
*As of June 2020
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Indonesia Advertising Market Share
TV, 64%
Internet, 16%
OOH 2%
Print,
16%Radio, 2%
TV Internet OOH Print Radio
TV, 62%
Internet, 25%
OOH 2%
Print; 10% Radio 1%
TV Internet OOH Print Radio
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5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
35.000.000
40.000.000
2015 2016 2017 2018 2019 2020 2021 2022
TV Internet Print & Related Other
2018
2022
• Given the infrastructure constraint, TV is the only medium to reach a mass audience.
• TV advertising is expected to maintain a dominant market share
• A more stable economic growth will boost ad spend, TV advertising should trend at a 5% CAGR between 2017-22
• 94% smartphone penetration among online users, grew from 40% in 2013.
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The Largest Audience Share & FTA TV Advertising Market Share
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
36,9 38,4 37,940,1
29,8
36,0
45,638,3
34,437,2 37,7
MNCN Audience Share 2010 – 2020
Indonesia FTA TV Advertising Market Share
FY-2014 FY-2015 FY-2016 FY-2017 FY-2018 FY-2019 H1-2020
37 39 4043 43 45 46
26 28 28 24 26 24 2418
14 12 12 10 10 1014 14
15 17 15 13 124 4 4 4 4 4 4
0 0 1 1 1 0 0
MNC Group Emtek Group Trans Corp Viva Group Metro TVRI
*Source : Nielsen (Q2-2020)
NOTE:
In June,ads spend
market share for MNCN
reached 52%
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TV Advertising Revenue
o Conventional TVC (15” and 30”) duringcommercial break.
o Creative ads/ Non Time Consuming ads.
o Equity Link (Air time and Content Library).
o QRIS Advertising.
o Localized RTX* & Geo-tagging TVC*.
o Digital Ads: Digital Broadcast, SocialMedia (including Library, original content,and MCN), News Portal, and RCTI+.
Built-In AdvertisingConventional TVC
Virtual Advertising Squeezed Frame Advertising
Super Impose RTX
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Viewers at Home To Shop Directly From TV
Consumer will be able to scan QR code directly from TV to buy products using e-Money Apps
Up front payment to secure transaction
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Easy Steps For Maximum User Experience
After payment, user is automatically redirected to our landing page
Voucher code confirmationFill out simple shipping information
Transaction complete!
1 2 3 4
Note:
• Auto-fill data for repeat consumer
• Full control on landing page and
user journey end to end
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Now TV Can Be a Shopping Marketplace
Note :
• Business model for FTA/OTT: receive ads revenue and revenue
share from transaction.
• As an acquirer, SPIN receives 0.7% Merchant Discount Rate
(MDR) for every transaction.
• Even when using other payment App, we still receive 39% (of
MDR).
With standardized QRIS, consumer can buy the products from various payment Apps.
Discount or Cashback for SPIN users
Seamless in Apps experience
Control the traffic end to end
Enriched data base and analytic for MNC Group
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Content Revenue
More than 80%
More than 80%
*Generating highest revenue per one hour broadcavstv
CONTENT LIBRARY LICENSING
(FTA, DTH Pay TV, IPTV, Mobile/Streaming, OTT)
• Produces around 23,000 hours of content annually.
• Owns more than 300,000 hours of content library with breakdown of 60% non News and 40% News content.
CONTENT PRODUCTION
(group & non-group)
• Content produced in-house include Drama, Talent Search, Animation, Sitcom, Movie, Reality, Infotainment, Variety, Talk Show, News.
80 % LOCAL
CONTENT
99 % IN-HOUSE
PRODUCE
Animation
Talent Search*
Drama Series*41%
20% FOREIGN
CONTENT
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The Largest Content Producer and Library Owner
Content
Penghuni Terakhir Bedah Rumah Kun Anta 2 Family 100 Koki Cilik 3 Dara Toko Barang Mantan
Little Big ShotTemen Kondangan Kiko Zak Storm Preman Pensiun Dunia TerbalikTukang Ojek Pengkolan
Drama Talent Search Animation Sitcom Reality Infotaiment Talk Show News Variety
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Best Special Program Line-up
Talent Search Anniversary and Awards
Sponsorship based
programs on
average generate
much higher
revenues compared
to regular programs
on FTA.
Source of revenue:
1) Conventional
TVC (15” and
30”)
2) Non time
consuming ads
placement
3) Off air activities
Note:
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• The biggest talent management company in Indonesia with more than 380 talents with various background under exclusive contract (5 years + 5 years).
• The Company manages national talent to perform in TV shows (group or non group), radios, off air events, OOH/TV commercial, live chat on RCTI+, and
content creators on MCN.
• There is a revenue split between talent and the Company for all bookings, including endorsements on their respective social media platforms.
Other Talent
Search
Lyodra
2020
Marion Jola
2018Citra Scholastika
2010
Deven 2018Sharon 2017 Anneth 2018
Eric 2020Fani 2018
Carla Yules
2020
Alya Nurshabrina
2018
Natasha Manuella
2016
Anwar 2015
Robby Purba
2017Sere Kalina
2016
Felicya
2016
Arnold
2017
Boy WIlliam
2010
Ayu Ting Ting
2010
Lolita Agustine
2010
Dede
2014
Christoper Edgar
2016
Sharla 2017 Kim Kimberly
2017
Kimberley
2018
Sharla 2018
Oge Arthemus
2009
Master Limbad
2009
Bow Vernon
2012
B Force
2017
Soul Sisters
2017
Andmesh
Kamaleng 2017Elvan
2019Hanin Dhiya
2016
Eva Puka
2013
Abi Rafdi
2018Suci 2019
Singing Competition
Talent Management
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Digital Broadcast
Digital quiz interactive where user can answer al thequestions on TV via RCTI Mobile. The questions will beappeared in a form of template with 110 sec. Thequestions consist of product knowledge from brandand program
Second Screen Quiz Interactive Second Screen Activity
Brand activation on RCTI Mobile where users can sendtheir comments and upload their photos which inlinewith brand campaign
Second Screen Live Chat
Users can access live streaming on RCTI Mobile as wellas having interactive with another user using chatfeature
Banner Random
A small picture on top of page with landing page
Native Ads Pre Roll
Bigger than banner, native ads are in the middle of the page. Brand can put their landing page on native ads
TVC with 15 sec duration. Pre roll will appear before the video content
Digital
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Indonesia’Most Watched Youtube Content | Derived from clips of MNCN Library
Digital
1
Starting in May
2020, MNCN
agreed to do the
same arrangement
with Facebook,
with a minimum
guarantee in place.
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MNCN
97.233.177
TRANS CORP38.428.332
NET 31.343.360
EMTK GROUP27.601.710
KOMPAS18.874.541
VIVA GROUP17.454.157
METRO3.151.150
RTV 3.640.554
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Number One Youtube TV Views & Subscribers in Indonesia
MNCN vs Competitors - views(in billion)
MNCN vs Competitors - subscribers
Source : MNC Research
July 2020Source : MNC Research, FY-2019
Note: Data for Youtube Indonesia
MNCN Nationwide Youtube market share:
4,73 %
Views
2,19%
Subscribers
2,50%
Video Uploads
Digital
12.2 11.510.4
6.13.4
MNCGROUP
TRANSCORP
NET EMTKGROUP
KOMPAS VIVAGROUP
24.1
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Maximize Brand’s Presence Through Engaging | Sponsorship Based Web-Series
Digital
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• Star Hits is a digital network that develops content creators, talent or influencers, to cooperate
with the brand and to create the ecosystem that are connected in the content.
• Owns various channels under star hits family brand, which focuses on various different genres.
• Currently, Star Hits also coordinates all of MNC Group’s channels in all social media.
• Star Hits started its MCN (Multi-Channel Network) operation in August 2019.
MCN (Aug 2019 – July 2020):
• 45.4mn subscribers
• 4bn views
MCN + Non – MCN
• 97mn subscribers (as of July 2020)
• 24.1bn views (FY – 2019)
Leading Digital Network
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My First Awards !! Thank God I’m
So
Happy .. #MJVLOG3
Andmesh Kamaleng – Flobamora
(Cover Live Studio)
Nantangin Roma Naik Wahana
Ekstrim Dufan
Kibo Kiting #19 : Di Bajak Tante
Melody JKT48 & Tante Ayu Ting
Ting
Digital
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MNCN’s General and News Portal - #1 and #6 in Indonesia
RANKS | Top Indonesian Sites
1. Okezone.com
2. Google.com
3. Tribunnews.com
4. Youtube.com
5. Grid.id
6. Sindonews.com
7. Kompas.com
8. Detik.com
9. Liputan6.com
10. Tokopedia.com
11. Bukalapak.com
12. Suara.com
13. Brilio.net
14. Kumparan.com
15. Idntimes.com
16. Merdeka.com
17. Google.co.id
18. Yahoo.com
19. Jpnn.com
20. Blogspot.com
Note : For News portal, Okezone.com is ranked #1 (20mn daily UV) and Sindonews.com #6
*Update 1 August 2020
Digital
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OTT Media Services
• LiveTV, catch up TV, and FTA programs -current and library
• Fresh extended content and FTA unairedcontent (bloopers and behind the scene)
• Creative content: Quiz, reward system,original short, mid, & long form content,voting, and chats with MNC talents
• Integration of MNCN news platforms intoRCTI+
• Top 20 articles from different categoriesderived from MNCN general and news portal
• Cooperation with portal aggregator
• Radio Aggregator – All radio stationsavailable digitally on the app with a choice ofchannels from various genres, years andmood selections
• Music radio playlist podcast content, andUGC podcast
1. Video Streaming
2. News Aggregator
3. Audio Aggregator
• Video sharing experience
• Exclusive content upload from the libraryin short and medium form and contentsimilar those uploaded on YouTube
• Talent search competition – facilitateuser to unlock their potential to the worldthrough online competition
• Provides access to new and exciting gamescontent
• A constantly expanding content offering
4. Talent Search - UGC
5. Games Aggregator
Digital
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Fact Sheet:1. Established in August 2019.2. Running on Advertising VOD model.3. MAU: More than 10 million (as of July 2020).4. Average viewing duration: 86 minutes.5. Revenue projection for 2020: $25-30 mio.6. Ads generation: independent and FTA bundle.
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The Largest Broadcast & Production Facilities in South East
Asia which enable MNC to strategically expand into Digital
Ecosystem (more than 400,000sqm built up area)
MNC News Centre, Central JakartaMNC Studios, West Jakarta
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Drama Production – Response to Covid-19 “semi-lockdown”Drama Production Set Up @ MNC Studios, Kebon Jeruk
Outdoor Set – “Orang Miskin Baru” Indoor Set – “Tukang Ojek Pengkolan” Indoor Set – “Dunia Terbalik”
Outdoor Set – “Memet” Indoor Set – “Jaka Tingkir”Indoor Set – “Amanah Wali 4”
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MNCN H1-2020 FINANCIAL PERFORMANCE Income Statements Variance Variance
In IDR mio 1H-2020 1H-2019 YoY Q2-2020 Q2-2019 QoQ
Revenues 3.966.928 4.251.970 -6,7% 1.951.134 2.365.615 -18%
Advertisement 3.615.774 4.032.745 -10% 1.803.433 2.264.790 -20%
Digital 409.080 325.215 26% 209.828 165.845 27%
Non-digital 3.206.694 3.707.530 -14% 1.593.605 2.098.945 -24%
Content 807.924 912.898 -11% 336.479 452.944 -26%
Others 59.391 54.751 8% 33.901 27.140 25%
(Elimination) (516.161) (748.424) (222.679) (379.259)
Direct Cost *) 1.381.244 1.487.583 -7% 670.001 831.856 -19%
Depreciation and amortization 107.172 91.412 17% 49.350 46.086 7%
Gross profit 2.478.512 2.672.975 -7% 1.231.783 1.487.673 -17%
Gross profit margin 62% 63% 63% 63%
General & Administrative expense *) 798.307 855.397 -7% 388.517 455.556 -15%
Depreciation and amortization 146.239 127.045 15% 87.980 78.571 12%
EBITDA 1.787.377 1.908.990 -6% 892.616 1.078.203 -17%
EBITDA Margin 45% 45% 46% 46%
Net Income 1.007.637 1.219.864 -17% 674.891 634.895 6%
Net income margin 25% 29% 35% 27%
1H-20/19 Q2-20/19
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MNCN FY-2019 FINANCIAL PERFORMANCE Digital :
• Digital Broadcast• Social Media (Library &
original content, etc)• Online portal
Non Digital Advertising : • Conventional TVC• Creative ads/ NTC ads• Equity Link
Content :
• Content Production(in-house & third party)
• Content Library
Others :• Talent Management• Print (being down sized)
MNCN FY-2019 VS Market Consensus
Income Statements Variance
In IDR mio FY-2019 FY-2018 YoY
Revenues 8.353.365 7.443.905 12%
Advertisement 8.065.137 7.242.402 11%
Digital 697.396 261.102 167%
Non-digital 7.367.741 6.981.300 6%
Content 1.740.365 1.518.392 15%
Others 113.911 199.825 -43%
(Elimination) (1.566.048) (1.516.714)
Direct Cost *) 2.835.003 2.643.184 7%
Depr & amort in Direct Cost 195.485 181.818 8%
Gross profit 5.322.877 4.618.903 15%
Gross profit margin 64% 62%
General & Administrative expense *) 1.804.950 1.623.994 11%
Depreciation and amortization 258.927 255.146 1%
EBITDA 3.713.412 3.176.727 17%
EBITDA Margin 44% 43%
Net Income 2.352.529 1.605.621 47%
Net income margin 28% 22%
Actual
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The Emerging Content and Digital Ads Revenue
• There is a strong growth in our digital and content revenue. Both have already contributed to 31% of the total revenue.
• The Company expects that by 2022, it will reach more than 40% of the total revenue.
• By 2024, it will contribute more than 50% of the total revenue.
• Moving forward, It is expected that our earnings in digital will increase significantly with the inclusion ofMCN and RCTI+, which were introduced in August 2019.
78
183
325372
410
H1-2018 H2-2018 H1-2019 H2-2019 H1-2020
Digital Revenue (in IDR bio)
1.466 1.5191.740
FY-2017 FY-2018 FY-2019
Content Revenue* (in IDR bio)
*Before elimination
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Thank You
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For further information, please contact Investor Relations Division:
Luthan Fadel Putra
Samuel Tanoesoedibjo
PT Media Nusantara Citra TbkMNC Tower 29th FloorJl Kebon Sirih No.17-19
Jakarta 10340, IndonesiaTel: 62-21 3913338Fax: 62-21 3910454
Website: www.mnc.co.id