LIFESTYLE entertainment LIFESTYLE entertainmentmajor.listedcompany.com/misc/quarterly/20120815-MAJOR-Quarterl… · 84 15 789 18 -500 0 500 1 ,000 1 ,500 2 ,000 2 ,500 1 Q10 23 4

2Q12 QUARTERLY BRIEFINGLIFESTYLEentertainment

Quarterly Briefing

2Q12MAJOR CINEPLEX GROUP PLC.Analyst MeetingParagon Cineplex, Siam Paragon : Aug 15th, 2012

LIFESTYLEentertainment


2

contents

The Bottom Line

2Q12 Financial ReviewReview of Revenue, Net profit B/S snapshot

Growth Potentials


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


-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


6

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


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

0

2Q1

0

3Q1

0

4Q1

0

1Q1

1

2Q1

1

3Q1

1

4Q1

1

1Q1

2

2Q1

2


8

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


9

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


10

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

11

2Q

11

3Q

11

4Q

11

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


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


AS

SET

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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


AS

SET

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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


GROWTH POTENTIALS


Quarterly Briefing

2Q12


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


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


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


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


MAJOR CINEPLEX GROUP PLC.


Thank You

Quarterly Briefing

2Q12

Documents

LIFESTYLE entertainment LIFESTYLE entertainmentmajor.listedcompany.com/misc/quarterly/20120815-MAJOR-Quarterl… · 84 15 789 18 -500 0 500 1 ,000 1 ,500 2 ,000 2 ,500 1 Q10 23 4