Corporate Update – August 2020

Listed and traded on the Indonesia Stock Exchange | STOCK CODE: MNCN

PT Media Nusantara Citra Tbk

MNCN Key Investment Highlights

2

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.

3

Macro Drivers Support Industry Growth

270

108 96 69 32 6

1.119.000

376.000

262.000 543.650

364.702 372.063

-

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

4

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

-

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.

6

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

9

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.

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

2

19

• 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

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

22

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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

Thank You

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For further information, please contact Investor Relations Division:

Luthan Fadel Putra

luthan.putra@mncgroup.com

Samuel Tanoesoedibjo

samuel.tanoesoedibjo@mncgroup.com

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