LIFESTYLE - listed companymajor.listedcompany.com/misc/quarterly/20170517-majo… · · 2017-05-17EXPANSION PLAN GROWTH PROTENTIALS P.3 P.5 STRATEGIC INVESTMENT ... LIFESTYLE entertainment

LIFESTYLEentertainment

1Q17 Analyst MeetingParagon Cineplex, 12th May 2017 1

MAJOR CINEPLEX GROUP PLC.

MAJOR CINEPLEX GROUPAGENDA

COMING ATTRACTION MOVIE LINE-UP

FINANCIAL OVERVIEW

P.3

FINANCIAL HIGHLIGHT RESULT

EXPANSION PLAN

GROWTH PROTENTIALS

P.3

P.5

STRATEGIC INVESTMENT

P.13

P.15

P.16 - 17

P.18

QUARTERLY REVENUE BREAKDOWN P.6

2

REVENUE BREAKDOWN BY SEGMENT

P.4

BALANCE SHEET SNAPSHOT

P.14



FINANCIAL OVERVIEW 3

IMAX

Financial Highlights

4

• More highlight Movie and Expansion branches built more revenue and high margin.

1Q17 QUARTERLY BRIEFING

Bt.Million 1Q16 1Q17Growth

Amt. %

Revenue 1,936 100% 2,134 100% 198 10%

Gross Margin 672 35% 716 34% 44 7%

EBITDA 556 29% 625 29% 68 12%

EBIT 308 16% 353 17% 45 14%

Net Profit 226 12% 262 12% 36 16%


Revenue Breakdown by segment

5

1Q17 QUARTERLY BRIEFING LIFESTYLEentertainment

Data as of 1Q17

M a jo r G r o u p 's R e v e n u e B r e a k d o w n 1 Q 1 7

C in e m a B u s in e s s 7 2 %

A d m is s io n s a le s 5 5 %

C o n c e s s io n s a le s 1 7 %

A d v e r tis in g B u s in e s s 1 6 %

R e n ta l & S e r v ic e B u s in e s s 5 %

B o w lin g & K a r a o k e B u s in e s s 4 %

M o v ie C o n te n t

(C o n te n t P ro v id e r & L o c a l P ro d u c t io n )

T o ta l R e v e n u e 1 0 0 %

3 %

Revenue Breakdown

6

Core businesses growth from more locations.

(Admissions rev., Concession rev., Advertising rev.)

2015 2016

1,0

40 1,1

64

Admissions Sale

+12%(+124mb.)

Concession

+12%(+38mb.)

Advertising

+15%(+45mb.)

Bowling group

(7%)(8mb.)

Retails

(5%)(6mb.)

Movie Content

+6%(+3mb.)

Total Revenue

+10%(+198mb.)

1,9

36

2,1

34

56 59

29

5 34

0

10

2

95 1

18

11

3

32

5 36

3

1Q16 1Q17


1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17


Revenue : Admissions

7

ATP & Guest Counts Screens

Top 3 Box Office 1Q2017

336 336 340 346 346

262 277 285 316 316

610 625 641 678 678

0

100

200

300

400

500

600

700

800

1Q16 2Q16 3Q16 4Q16 1Q17

BKK & Vicinty Province International

Admission sales growth +12% YoY

• Several number of Hollywood blockbusters in 1Q17 (No. of movie in 1Q17 = 114 Movies, 1Q16 = 103 Movies)

• Focus on expand customer base by create cross promotion with partners in some locations to drive number of admission .


6.4

10.0

7.0 6.4 7.4

163172

165 161 161

100

110

120

130

140

150

160

170

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1Q16 2Q16 3Q16 4Q16 1Q17

Guest Counts ATP


113 MB 100 MB 100 MB

Revenue : Concession

8

Concession Sale % Con To Box

325483

335 300363

69% 69% 69% 67% 69%

20%

30%

40%

50%

60%

70%

80%

0

100

200

300

400

500

600

700

800

1Q16 2Q16 3Q16 4Q16 1Q17

Concession Sales Margin

6.35

9.977.01 6.36 7.35

33.0%30.8% 31.0% 31.4%

32.9%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

0

2

4

6

8

10

12

14

16

18

20

1Q16 2Q16 3Q16 4Q16 1Q17

Admission % Con to Box

1Q17 QUARTERLY BRIEFING LIFESTYLEentertainment

Concession sales growth +12% YoY

• Maintain consistence gross margin.

• More admission boost concession revenue.

• More attractive concession bucket sets.

• Seasonal favor is one of our key drive.

Revenue : Advertising

9

Advertising Revenue


295345 365

282340

87% 86% 86% 87% 89%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

100

200

300

400

500

600

1Q16 2Q16 3Q16 4Q16 1Q17

Advertising Margin


Advertising sales growth +15% YoY

• More Screens can generate more advertising revenue.

• Create flexible advertising package to match with partner’s need.

• Maintain consistence high gross margin.

Movie on the beach 2017 with Chang, Moccona, Mama, True, Nivea, We Fitness, M Channel.

Interactive event in 4DX screen with Essence brand

Revenue: Bowling Group

10

Bowling Revenue


102 110 114 102 95

31%35%

38%35%

38%

10%

15%

20%

25%

30%

35%

40%

45%

0

50

100

150

200

250

300

1Q16 2Q16 3Q16 4Q16 1Q17

Bowling Margin


Bowling declined -7%, Margin +7% YoY

• Revenue declined from 4 locations closure (YOY).

• Gross Margin improved from lower cost management.

• Focus on function, corporate events, competition and create attractive event to draw customers such as concert.

Revenue: Retails

11

Retails Revenue


118 123 119 117 113

16% 16% 15%17%

15%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

50

70

90

110

130

150

170

190

1Q16 2Q16 3Q16 4Q16 1Q17

Retails Margin


Rental and Services declined -5% YoY

• Revenue declined from impacted of removal of Ratchayothin Flyover and the construction of Bangkok Mass Transit System (BTS) Green Line extension.

• The tunnel at Ratchayothin intersection will approximately open May 2017.

Revenue: Movie Contents

12

Movie Contents Revenue Movie Contents Breakdown


56

8064

89

59

0

10

20

30

40

50

60

70

80

90

100

1Q16 2Q16 3Q16 4Q16 1Q17

11.2

25.517.7

1.4

29.826.6

2.8 0.10

5

10

15

20

25

30

35

40

Film Production

Film rights distribution

Sales of VCD and DVD

Others

1Q16 1Q17

ConsolidationLIFESTYLEentertainment

+6%(+3mb.)

Movie Content growth 6% YoY

• Revenue growth from Film Production from subsidiaries company – I love you two, The Moment, Mr.Hurt.

• Scale down home entertainment business.

6,797 6,938 6,716 6,718 6,976

4,182 3,913 4,643 4,708 4,409

0.620.56

0.69 0.700.63

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1Q16 2Q16 3Q16 4Q16 1Q17

Equity Net interest-bearing debts Net D/E

ASS

ETS

EQU

ITY

LIA

BIL

ITIE

S

14,576 7,600

6,976

13

B/S Snapshot

Dec 31,16 Mar 31,17

• Asset decreased from useful life of Fix Asset.

• Good performance result to good liabilities and Equity.

(1.0%) (5.1%)

+3.8%

ASS

ETS

EQU

ITY

LIA

BIL

ITIE

S

14,725 8,007

6,718


Bt.million Dec 31,16 Mar 31,17 %chg

Assets 14,725 14,576 (1.0%)

Liabilities 8,007 7,600 (5.1%)

Equity 6,718 6,976 3.8%


Strategic investment and hidden profit

14AS

SET

S

EQU

ITY

Investment portfolio as of 9th May, 2017:• 25.19% in Siam Future Development Plc. (SF)• 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF)• 92.46% in M Pictures Entertainment Plc. (MPIC)• 40.00% in Thai Ticket Major Co., Ltd.• 1.50% in PVR Limited (PVRL)• 49.00% in PVR blu-O Entertainment Limited• 69.97% in Major Platinum Cineplex Co.,ltd. (Cambodia)• 59.98% in Major Platinum Cineplex Co.,ltd. (Lao)• 99.99% in Cineplex (Lao) Sole Co.,ltd.• 49.00% in CJ Major Entertainment


Closing price as on 8 May 2017 Bt.million

Investments %ShareCost per

ShareMajor’s

CostMarket Value

Unrealized Gain (Loss)

Siam Future 25.19% 2.93 1,311 2,775 1,464

MJLF 33.00% 10.00 1,089 1,514 425

MPIC 92.46% 1.67 2,003 1,827 (176)

PVRL 1.50% 120.45 84 548 464

Total 4,488 6,664 2,176



GROWTH POTENTIALS 15

2Q17

Fast & Furious 8

Transformers: The Last Knight Pirates of the Caribbean 5 Guardians of the Galaxy 2 The MummyKing Arthur Wonder Woman

Alien: CovenantDespicable Me 3 Smurfs: The Lost Village

The MonsterBaywatchDoraemon Space Hero

Thai Movies Chalard Games Goeng – DramaThailand Only - ComedyZombie fighter - Horror/ComedyEstimate Total 5 Thai Movies

*Please note that release dates are subject to change.

2Q17 Coming Attraction Movies

16

MAJOR CINEPLEX GROUP LIFESTYLEentertainment

http://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-casting


2H17

Spider-Man: Home Coming

Thor: RagnarokJustice LeagueWar for the Planet of the ApesStar War: The Last JediJumanjiCars 3Blade Runner 2049Valerian and the City

Insidious: Chapter 4Kingsman: The Golden CircleAnnabelle 2FlatlinersThe Hit's Man BodyguardGeo Storm

CocoThe Lego Ninjago

Thai Movies Estimate 20 Thai Movies in 2H17

*Please note that release dates are subject to change.

2H17 Coming Attraction Movies

17

MAJOR CINEPLEX GROUP LIFESTYLEentertainment



18

MAJOR plan to open another 70-80 screens in 2017 and currently operated 680 screens nationwide.

2Q12 2Q13

EXPANSION PLAN

76% 74% 70% 71% 61% 59% 57% 52% 49%

24% 26% 30% 29% 39% 41% 43% 48% 51%

0%

20%

40%

60%

80%

100%

120%

Y'09 Y'10 Y'11 Y'12 Y'13 Y'14 Y'15 Y'16 Y'17

BKK UPC

N o . L o c a t i o n S c r e e n s L o c a t i o n O p e n i n g D a te

1 L o tu s N a k o r n p a th o m 2 1 1 4

2 R o b i n s o n P h e tc h a b u r i 5 1 1 5

3 L o tu s S u k h o th a i 1 1 1 6

4 B i g C P a th u m th a n i 5 1 1 7

5 B i g C K o r a t 2 (N a k o r n r a tc h a s i m a ) 4 1 1 8

6 U tta r a d i t 4 1 1 9

7 W o r l d T r a d e C e n te r V i a n t i a n - L a o s 7 1 2 0

8 B i g C N a k o r n r a tc h a s i m a 3 1 2 1

9 R o b i n s o n H u a M a r k 4 1 2 2

1 0 B i g C C h o n b u r i 3 1 2 3

1 1 L o tu s P h a t th a l u n g 2 1 2 4

1 2 L o tu s P h i t s a n u l o k 2 1 2 5

1 3 L o tu s P h i c h i t 2 1 2 6

1 4 L o tu s A n g th o n g 2 1 2 7

1 5 O c e a n C h u m p h o n 5 1 2 8

1 6 S a h a th a i N a k h o n s i th a m m a r a t 2 1 2 9

1 7 S i n g b u r i 3 1 3 0

1 8 L o e i 3 1 3 1

Q 1 /1 7

(7 S c re e n s )

2 H 1 7

(4 2 S c re e n s )

Q 2 /1 7

(1 0 S c re e n s )

Screen Opening in 2017 (Tentative) – 16 Locations in upcountry, 1 locations in Bangkok, 1 location international

Data as of February 2017

MAJOR seek for long-term investmentstrategy growth, by plans to expand in bothnationwide, but the focus is more branchesin upcountry via hyper mart (Big C, TescoLotus) partners.

We expect the positive momentum tocontinue over as Major targets as of 1,000screens by 2020.

No. Location Screens LocationOpening

Date

1 Lotus Nakornpathom (Opened 6 Apr) 2 114

2Q17(12 Screens)

2 Lotus Sukhothai 1 115

3 Robinson Phetchaburi 5 116

4 Big C Korat 2 (Nakornratchasima) 4 117

5 Big C Pathumthani 5 118

2H17(50 Screens)

6 Uttaradit 4 119

7 Lotus Yasotorn 2 120

8 Big C Ubon Ratchathani 4 121

9 Lotus Phitsanulok 2 122

10 Sahathai Nakhonsithammarat 2 123

11 Big C Chonburi 3 124

12 Ocean Chumphon 5 125

13 Lotus Phatthalung 3 126

14 Singburi 3 127

15 Loei 3 128

16 Robinson Hua Mark 4 129

17 Lotus Phichit 3 130

18 World Trade Center Viantian - Laos 7 131

76% 74% 70% 71%61% 59% 57% 52%

24% 26% 30% 29%39% 41% 43% 48%

Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16

BKK UPC


https://www.facebook.com/Park24condo

Capitalizing on provincial growth. MAJOR plans to expand its locations more in provincial, where thereis room for growth. Cinema is cheap entertainment that young people love to come and it got lessimpact from macro economic.

2Q12 2Q13

Focus on growth strategy platform to remain strong momentum earnings.

Data as of February 2017

EXPANSION PLAN

19

267 269 294 294 304 336 346

94 114119

185 209253

316

361 383413

479520

601

678

750

0

100

200

300

400

500

600

700

800

Y10 Y11 Y12 Y13 Y14 Y15 Y16 Targeting 2017

BKK UPC International Number of Screens

+50

+20

~


M Generation (Loyalty Program) 3,400,000 Members

Facebook: www.facebook.com/MajorGroup 3,837,000 Fan page

Twitter: MajorGroup 2,160,00 Followers

Instagram: MajorFriends 261,000 Followers

Mobile Application 7,500,000 Download

20

Major leverage by using social media and loyalty program to create frequency movie as well as nurture movie culture.

ID line: MajorFriends 15,464,000 Friends

SOCIAL MEDIA PLATFORM LIFESTYLEentertainment

MAJOR CINEPLEX GROUP PLC.


Q&A21

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LIFESTYLE - listed companymajor.listedcompany.com/misc/quarterly/20170517-majo… · · 2017-05-17EXPANSION PLAN GROWTH PROTENTIALS P.3 P.5 STRATEGIC INVESTMENT ... LIFESTYLE entertainment