lifestyle entertainment lifestyle...

1Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment

Quarterly Briefing

1Q12MAJOR CINEPLEX GROUP PLC.Analyst MeetingParagon Cineplex, Siam Paragon : May 11th, 2012

LIFESTYLEentertainment


2

contents

The Bottom Line

1Q12 Financial ReviewReview of Revenue, Net profit B/S snapshot

Growth Potentials



96

15

2

21

4 24

7

19

3

28

7

21

5

81

23

3

46

9

6

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

19

3

23

3

1Q11 1Q12

The Bottom Line

1Q11 1Q12 3


Net Profit Bt.million1Q10 1Q11 2Q10 2Q11 3Q10 3Q11 4Q10 4Q11

Bt.million

Net profit +21%

*Gain from Financial lease

21% Profit Growth mainly from

• Insurance claimed from Bangna Branch• Profit booking from divestment in SF


23

1 26

7

1Q11 1Q12

1,4

70 1

,66

7

1Q11 1Q12

14

4 16

9

1Q11 1Q12

10

9 12

91Q11 1Q12

10

7

10

1

1Q11 1Q12

88

0 1,0

00

1Q11 1Q121Q11 1Q12 4

Bowlinggroup

-5%

Core Rental&services

+19%

filmdistribution

+15%

Cinema group+14%

Advertising+18%

The Revenue Review

Bt.million

Core Revenue +13%

Continuous growth from key businesses

• 13% revenue growth YoY• Cinema, Advertising and Rental as key drivers


1,4

70 1

,66

7

1Q11 1Q12

774

801 1,

065

762 88

0

1,32

6

1,19

1

809 1,00

0

28%24%

28%26%

31% 30%26% 27% 28%

-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

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

70

4 80

4

17

6 19

6

1Q11 1Q125

Cinema is stronger especially from Thai films• Thai films as key driver in 1Q12

• Digital theatres also drive revenue

GBO+14%

Concessions+11%

Cinema revenues Bt.million

The Revenue Review : Cinema

1Q11 1Q12

Bt.million

Core Revenue +13%

Cinema group+14%


1,4

70 1

,66

7

1Q11 1Q12

6Cinema revenues Bt.million

1Q11

The Revenue Review : Cinema (Con’t)

70

4 80

4

17

6 19

6

1Q11 1Q121Q11 1Q12

Bt.million

Core Revenue +13%

Cinema group+14%

90.4 65.4 59.4 45.9 41.7

50.0% 50.0% 50.0% 50.0% 49.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

SudKhet JeeWonBin SuckSeed RakManYai IAmNo4

GBO F/H

142.8 62.8 58.9 58.7 51.3

50.0% 50.0%51.6%

50.0%48.2%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

-10.0

10.0

30.0

50.0

70.0

90.0

110.0

130.0

150.0

170.0

ATMErrak SKSsweety JohnCater ValentSweety RealSteel

GBO F/H

1Q12

14% YoY Growth in Cinema

• Mainly from ATM err-rak error, sor kor sor sweety,

valentine sweety• Avg. film hire increase 1%


1,4

70 1

,66

7

1Q11 1Q12

7

ATP & Admission (Net Complimentary)

The Revenue Review : Cinema (Con’t)

70

4 80

4

17

6 19

6

1Q11 1Q12

GBO+14%

Concessions+11%

1Q11 1Q12

Bt.million

Core Revenue +13%

Cinema group+14%

4.9 5.2 6.8

4.8 5.8

7.7 6.6

4.6 5.9

137 132 135 135127

145152

146 141

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

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

1Q

12

11%YoY ATP Growth• ATP and Admission increase• More Digital theatres makes ATP gets more higher


13

0 15

2

1Q11 1Q12

CineAd

MPIC

TalentOne

13

0 15

2

1Q11 1Q12

CineAd

MPIC

TalentOne

1,4

70 1

,66

7

1Q11 1Q12

Advertising+18%

Core advertising services income Bt.million 8

Continue growth in Advertising

• Good response in By-movie ads package•Drink & Snack and Telecommunication are still main clients

Core Advertising +17% YoY

The Revenue Review : Advertising

1Q11 1Q12

Bt.million

Core Revenue +13%

128

175 175 169

130

189

213194

152

0

50

100

150

200

250

300

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

Core Ad

13

0 15

2

1Q11 1Q12

CineAd

MPIC

TalentOne

14

4 16

9

13

0 15

2

1Q11 1Q12

CineAd

MPIC

TalentOne


1,4

70 1

,66

7

1Q11 1Q12

111 104119

133107 118 125

91 101

35%32% 33% 33%

30% 31%34%

19%

27%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

50

100

150

200

250

300

350

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

10

7

10

1

1Q11 1Q12 9Bowling & Karaoke revenues Bt.million

Revenue slightly softened

• Closed down 2 branches: Piyarom and Ladprao

The Revenue Review : Bowling

1Q11 1Q12

Bt.million

Core Revenue +13%

Bowlinggroup

-5%


1,4

70 1

,66

7

1Q11 1Q12

10

9 12

9

1Q11 1Q1210

Core rental & services income Bt.million

Excl.Finance Lease

3Q10 4Q10 1Q11 2Q11 FY11

The Revenue Review : Retail

1Q11 1Q12

Bt.million

Core Revenue +13%

Core Rental&services

+19%

117108 112

103109 112

130

114

129

0

20

40

60

80

100

120

140

160

180

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

Fully occupancy in Metropolis drive up revenue

•Metropolis is fully occupied • Slight drop on promotional area


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

6,0566,325

4,9315,058

10,98811,383

Dec 31, 11 Dec 31, 11 Mar 31, 12 Mar 31, 12

Bt.million Dec 31, 11 Mar 31, 12 %chg

Assets 10,988 11,383 4%Liabilities 4,931 5,058 3%Equity 6,056 6,325 4%

Dec 31, 11 Mar 31, 12

AS

SET

S

AS

SET

S

EQU

ITY

EQU

ITY

LIA

BIL

ITIE

S

LIA

BIL

ITIE

S

B/S Snapshot

End

2Q11

0.85

0.62

0.30 0.37

0.60 0.51

0.36

(0.50)

(0.30)

(0.10)

0.10

0.30

0.50

0.70

0.90

1.10

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

YE05 YE06 YE07 YE08 YE09 YE10 End 2Q11

Net interest-bearing debts Equity Net D/E

YE10 YE11YE0911

END OF

1Q12


Bt.million

Interest-bearing debts 1Q12

Bank OD & ST loans 477

CP of LT borrowings 1,558

LT borrowings 158

Debentures 800

Total 2,994

6,0566,325

4,9315,058

10,98811,383

Dec 31, 11 Dec 31, 11 Mar 31, 12 Mar 31, 12

AS

SET

S

EQU

ITY

LIA

BIL

ITIE

S

Investments Portfoliovs. Interest-bearing debts

• Investment portfolio as of 20th Apr 12:• 23% in Siam Future Development Plc. (SF) • 66% in M Pictures Entertainment Plc. (MPIC)• 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.

12

AS

SET

S

Mar31, 12Bt.million

Investments %ShareholdingCost per

ShareMarket value*

MJLF 33.0% 10.00 1,307

Siam Future 22.9% 2.38 2,206

MPIC 66.1% 1.55 691

PVRL 9.9% 91.06 202

Total 4,406 *Closing price on May 5,2012


GROWTH POTENTIALS


Quarterly Briefing

1Q12


GROWTH POTENTIALSFY12 Strategic Focus


14

Main concept still remain - Continue growth with more screens, higher ATP and convert to Digital’s format theme

• More focus on optimizing returns from existing assets, given the solid film line-up and Major’s increased market penetration

• Cautious expansion, focusing on prime new locations• Increase number of digital theaters to eventually replace film • Driving same store growth for higher revenues and yields

• Focus on optimizing multi-tier pricing• Increase cinema occupancy• Improve ticketing convenience to both increase customer satisfaction and

encourage pre-bookings i.e. Counter Service• Maximize M-Gen campaign to increase customer loyalty and

communications to customers• Increase quality of Digital theatres and maximize 3D films to increase ATP• 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


GROWTH POTENTIALSFY12 Blockbuster Highlight LIFESTYLE

entertainment

1Q12ATM Er-Rak-Eror

Valentine Sweety

Underworld4

John Carter

Hanger Games

Wrath of TITANs

2Q12Battleship

The Avengers

Men In Black 3

Snow White and the Huntsman

3Q12G.I. Joe 2: Retaliation

The Amazing Spider-Man

The Dark Knight Rises

Resident Evil 5

4Q12Bond 23 (007)

The Twilight Saga : Breaking Dawn2

The Hobbit

2Q12Battleship

The Avengers

Men In Black 3

Snow White and the Huntsman

G.I. Joe 2: Retaliation

3Q12The Amazing Spider-Man

The Dark Knight Rises

Step Up Revolution

Naresuan 5

Total Recall

Resident Evil 5

4Q12Bond 23 (007)

The Twilight Saga : Breaking Dawn2

47 Ronin

The Hobbit


GROWTH POTENTIALSCapacities LIFESTYLE

entertainmentAs of Apr 2012

FY10 FY11 FY12Screens 361 383 53

BKK & Vicinity 252 259 IKEA 16

Bangkae 10

TBA 5

Provincial 109 124 Ubonratchathani 2 Additional screens

Bangna 1 Additional screens

Udonthanee 4 Additional screens

TBA 15

Lanes 504 506 196

BKK & Vicinity 386 386 IKEA 24

Bangkae 16

Provincial 94 94

International 24 Vasant Kunj 26 Bangalore 60

Pune 36

Mumbai 12

Raja Garden 22

Chandigarh 26


GROWTH POTENTIALSM Generation LIFESTYLE

entertainment

180.5

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 1,485,073 members

71.7Bt.million

As of May 9th 12

Ratio M Gen Card : Regular & Student

47.6%52.4%

RegularStudent


MAJOR CINEPLEX GROUP PLC.


Thank You

Quarterly Briefing

1Q12

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