Corporate UpdateApril 2018
MNC Media
PT Global Mediacom Tbk.
Listed and traded on the Indonesia Stock Exchange
STOCK CODE: BMTR
MNCN
MSKY
Disclaimer
2
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MNC Media Corporate StructureSection 1
MNC Media Corporate Structure
4
Global Mediacom Tbk
100 %
Media Nusantara Citra Tbk
Content and Advertising Based Media
68%
PT MNC Vision NetworkSubscription Based Media
Online Media
97.6%
IPTV/Fixed Broadband
100 %
OTT
100 %
DTH Pay TV
Indonesia’s Media Industry UpdateSection 2
6
The Largest Fully Integrated Media Company in Southeast Asia
RADIO
SUPPORTINGFREE-TO-AIR TV CONTENT
PAY-TV CHANNELSCONTENT LIBRARYTALENT / EVENTMANAGEMENT
Content library containsmore than 300,000 hoursand increasing by morethan 15,000 - 20,000hours per year
PRODUCTION
Studio based by 4 FTA
ENTERTAINMENT
NEWS & SPORTS
Entertainment FTA focusing on family audience
Largest news TV and
programs (providing news
programs to the Group’s 3
entertainment FTA)
7
The Largest Content Producer
CONTENT
• 80% of our contents are local with more than 90% produced in-house
• Gradually reducing foreign content, due to low margin and high cost
• Targeting to increase local content to approximately 100% in 2018, which will lead to a decrease in programming
cost and higher EBITDA Margin
PRODUCTIONCONTENT LIBRARY Pay TV Channel
Drama, Talent Search, Animation, Sitcom, Movie
The Largest and Leading Audience Share
Content is the only way to capture audience share
and monetize advertising dollars
Indonesians love dramas and we broadcast many of
the top drama series
We have licensed popular International programs
such as Master Chef, Indonesian Idol and X Factor
More than 300,000 hours of content library and
increasing by more than 15,000 – 20,000 hours
annually
We also have 20 MNC branded Pay TV Channels.
These channels are integral to our content strategy
Creating the best content is our top priority
“Content is where I expect much of the real money will be made on the Internet, just as it was in broadcasting.
The television revolution that began half a century ago spawned a number of industries, including the manufacturing of TV sets, but the
long-term winners were those who used the medium to deliver information and entertainment.”
“Content is King” by Bill Gates in 1996
8
Source: Nielsen Prime-Time All Demographic 5+ Audience Share
Dec-17
Share
1 RCTI ABC 21.7
2 SCTV ABCD 16.2
3 ANTV ABC 14.3
4 IVM ABCD 12.7
5 MNCTV ABCD 9.8
6 TRANS7 ABC 6.2
7 GTV ABC 5.7
8 TVONE ABC 5.0
9 TRANS ABC 4.8
10 METRO AB 1.7
11 INEWS ABC 1.1
Rank StationTarget
Audience
9
The Best Talent Search Format Lineup
Pioneering the international scale talent search programs in Indonesia, such as
Indonesian Idol - 8th season and running,
X-Factor Indonesia - 2nd season and running,
Rising Star Indonesia - The 1st Season with interactive talent search programs
MasterChef Indonesia - 3rd season and running
The Voice Indonesia – Aired February 2016Our talent search programs are 3x more profitable than competing “In-house” dangdut singing competition
10
MNCN Dominates Top 20 Program as of 2017
• New comedy drama series produced by MNC Pictures “Dunia Terbalik” performed very
strong topping the program charts.
• 5 out of the Top 10 drama series for 2017 belongs to MNC
Source: Nielsen, ALL DEMO, 5+
NO PROGRAMS CHANNEL TYPE TVR SHARE
1 ANUGERAH CINTA RCTI Series 5.8 27.4
2 DUNIA TERBALIK RCTI Series 5.0 22.1
3 TUKANG BUBUR NAIK HAJI THE SER RCTI Series 4.9 19.7
4 ANAK JALANAN RCTI Series 4.9 23.0
5 SIAPA TAKUT JATUH CINTA SCTV Series 4.3 19.0
6 ORANG-ORANG KAMPUNG DUKU SCTV Series 3.9 15.9
7 ANAK LANGIT SCTV Series 3.8 16.1
8 JODOH ANTV Series 3.7 16.5
9 BOY SCTV Series 3.6 14.9
10 CAHAYA HATI(A01) RCTI Series 3.5 15.5
11 BUAYA PUTIH RCTI Series 3.2 12.3
12 PESANTREN & ROCK'N ROLL 4 SCTV Series 3.2 21.2
13 BERKAH CINTA SCTV Series 3.1 17.4
14 TOP TUKANG OJEK PENGKOLAN RCTI Series 3.1 15.7
15 AMANAH WALI RCTI Series 3.0 21.0
16 GOPI ANTV Series 2.9 19.0
17 SELEB DRAMA ANTV Series 2.9 21.3
18 GEET ANTV Series 2.8 15.8
19 JODOH PENGANTAR JENAZAH ANTV Series 2.8 17.0
20 WARTEG DKI(R) ANTV Series 2.8 12.2
All Contents Are Produced Using State-of-the Art Broadcasting Facilities
11
MNC TV RCTI GTV
Entertainment Based Infrastructure Integrated News Center
INEWS
Revenue StreamsSection 3
13
TV Advertising Revenue
Traditional TVC Commercial (15”
and 30” ) during commercial
break
Virtual ads
Built-in sponsorship and off air
events
Build-In AdvertisingTraditional TVC
Advertising Revenue Stream
Virtual Advertising on Drama Series (TOP) Virtual Advertising on Variety Shows (Dashyat)
14
Digital Mobile/ Online Advertising Revenue
15
Content Revenue
Pay TV
OTTProduced for
All the local content is sourced from the Group/s content library and
produced in house
Library is monetized by selling to FTA, Pay-TV, and OTT in both Indonesia
and Overseas
Revenue is generated from advertising and subscription
We are planning to supply 8 additional channel to Malaysia in Q2-2018
Indonesia and overseas
16
Content Revenue (Including Digital Content)
Content business is growing, content revenue is derived not only from FTA, but also
from digital platforms in Indonesia and overseas
More than 300.000 hours of content library to sell
Financial Update Media Nusantara CitraSection 4
18
MNCN Financial Statements FY2017 VS 2016
Income Statements Variance Variance
In IDR mio FY2017 FY2016 YoY Q4-2017 Q4-2016 YoY
Revenues 7,052,686 6,730,275 5% 1,670,881 1,465,838 14%
Advertisement 6,639,080 6,353,094 5% 1,617,382 1,457,129 11%
RCTI 3,639,505 3,635,376 0% 895,548 842,265 6%
Advertisement excl. RCTI 2,999,576 2,717,718 10% 721,834 614,864 17%
Content 1,466,278 1,000,945 46% 441,238 295,429 49%
Others 454,976 521,294 -13% 123,054 120,348 2%
Elimination (1,507,648) (1,145,058) 32% (510,792) (407,068) 25%
Euro Revenue (RCTI) 230,000
Revenue (excl EURO) 7,052,686 6,500,275 8% 1,670,881 1,465,838 14%
Direct Cost *) 2,486,511 2,719,126 -9% 486,742 508,584 -4%
Depr & amort in Direct Cost 183,962 159,864 15% 46,387 66,837 -31%
Gross profit 4,382,213 3,851,285 14% 1,137,752 890,416 28%
Gross profit margin 62% 57% 68% 61%
General & Administrative expense 1,468,819 1,380,601 6% 383,951 404,239 -5%
Depreciation and amortization 247,641 146,497 69% 49,499 51,385 -4%
EBITDA 3,097,356 2,630,549 18% 800,188 553,014 45%
EBITDA Margin 44% 39% 48% 38%
Net Income 1,453,313 1,368,676 6% 331,554 (74,032)
Net income margin 21% 20% 20% -5%
Actual Actual
Indonesia’s Pay-TV UpdateSection 5
20
IDR 81kARPU(4)
5
MNC Vision at a Glance
Notes
1 As of 31 Dec 17
2 For the period 2010-2017
3 Media Partners Asia 2017 Report
4 Weighted Average period Jan-Dec 2017
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101 Branches
Extensive In-house
Distribution and
Sales Network
10
MNC NowOTT Services
2.5MMSubscribers(1)
1 2
17.5%Subscriber
CAGR(2)
3
NationwideCoverage
Using S-band & DTH
Technology
4
58%Market
Share(3)
6
0.96%Churn Rate(4)
7
137Channels
32Exclusive
Channels
8
Exclusive
25
166%
92%83%
74%65%
52%
30%18%
10%
0%
40%
80%
120%
160%
200%
Korea Hong Kong India China Singapore Malaysia Thailand Philippines Indonesia
6%6%
5%
2%
1% 1%0% 0% 0%
0%
2%
4%
6%
8%
Philippines Indonesia China India Korea Thailand Malaysia Hong Kong Singapore
Indonesia has the lowest pay TV penetration rate of TV household in the Asia Pasific (2016)
Indonesia Pay-TV subs is among the highest projected country in Asia Pasific (CAGR 2016-2022E)
Source: Media Partners Asia 2017
Indonesia’s Pay TV Market Has Huge Potential
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Key Initiatives
Increase Subscriber:
Direct Sales with Customer Experience focus
Bundling DTH & Wireless Broadband & OTT
Minimize Churn:
Restructured sales incentive system, Faster
response. Better customer service, Member-
get-member program
Increase ARPU:
Launched Bundling Product with MNC Play
and Wireless Broadband, and Upselling
Channel Packages
27
Our 3 Most Important Competitive Advantages
137 channels with 32 exclusive channels; 23 MNC branded channels
The only provider that owns satellite with S-band technology
Has 101 branches across Indonesia
32
High Speed 4G LTE Internet Package Bundling
To cater the needs of subscribers who demand high quality
internet access, MSKY cooperates with XL, Indosat, Smartfren,
and 3 (Tri) to create Pay-TV + OTT + 4G Internet Package
Bundling.
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High Speed 4G LTE Internet Package Bundling
Product Name Indovision+ Home Internet 4G LTE
Product Type Home Wireless Broadband
Internet Price 20 GB = Rp. 220.000 (incl tax)/ month80 GB = Rp 239.800 (incl tax)/ month
Quota 20GB or 80GB/ month
Speed Up to 150 mbps
Top Up/ Booster
5GB = Rp. 55.000 and 10GB = Rp. 110.000
Bundling withPay TV
Internet Price + Basic Price of Pay TV Package (Silver / Gold / Venus / Galaxy / Super Galaxy)
System Billing Fixed Rate
34
INDOVISION Priority Program – Loyalty Reward
Indovision gives various benefits of the program Priority Bonus Pack, including free subcription fee, free or discount ala carte for High Definition devices.
35
Broadband BusinessSection 6
36
MNC Play at a Glance
US$ 22Residential
ARPU(3)
5
3
175kResidential
Customers(1)
4
253Enterprise
Customers(1)
7
Up To
1 GbpsInternet Speed
Notes
1 Up to 31 Dec 2017
2 Monthly Average 2017
3 YTD Dec 2017
8
172Channels
2
Presence in
9 Cities(1)
1
1209kHomes
Passed(1)
6
1.7%Monthly Churn
Rate(2)
37
Broadband Market is at the Cusp of Rapid Growth…
High Penetration, High GrowthHigh Penetration, Low Growth
Low Penetration, High Growth
“Sweet Spot”
Low Growth, Low Penetration
China
Indonesia
Japan
Philippines
Vietnam
ThailandMalaysia
Australia
Taiwan
Hong Kong
Singapore
New Zealand
0
30
60
90
120
0 12 24 36 48
Emerging Market
FTTx Subscription Revenue Significant Potential with Low Penetration and High Growth
2017 Fixed Broadband Penetration (%)
78,5%
33,6%
30,0%
30,2%
25,0%
25,0%
22,6%
10,3%
7,6%
6,7%
6,4%
4,7%
2,5%
1,6%
India
Indonesia
Thailand
Philippines
New Zealand
Australia
Vietnam
Malaysia
China
Singapore
Hong Kong
Taiwan
Japan
Korea
Source Media Partners Asia 2017
0
Developed Market Size of bubble represents # of householdsNote
1 China and India are not up to scale
(1)
(1)
2016-22E CAGR (%)
FTTx Revenue 16-22E CAGR (%)
38
…Resulting from an Underpenetrated and Underserved Market
…And A Relatively Low Average Fixed Broadband Speed…
Mbps28,6
21,920,3
16,0
9,5 8,97,2 6,5 5,5
Korea HongKong
Singapore Thailand Vietnam Malaysia Indonesia India Phillipines
Indonesia Has Amongst the Lowest Fixed Broadband
Penetration…
2017 (%)
Source Media Partners Asia 2017, Akamai (Q1 2017)
…Among the Highest Projected Fixed Broadband Subscriber
Growth…
2016-22E CAGR (%)
128%
96%88%
67%
37% 35%
11% 8% 7%
0
40
80
120
Korea HongKong
Singapore China Malaysia Thailand Philip-pines
Indonesia India
11,0 10,9
5,7 5,5 5,12,5 2,3 2,0
0,6
India Philip-pines
Thailand Indonesia China Malaysia HongKong
Singapore Korea
…With Substantial Headroom for ARPU Growth
2017 (US$)
34
29 2925
1714
118 8
Malaysia Philip-pines
Singapore HongKong
Thailand Korea Indonesia India China
41
The Fastest Internet
ConnectionHigh Speed Upload & Download
Modern Fiber with Latest
Wi-Fi Technologies
100% Fiber Optic
The Most Sophisticated
Pay TV Offering You Will Not Miss Your Favourite Shows
Video On Demand
Feature
172 SD and HD
Channels
Television On Demand
Pause, Play and Rewind
for All Channels
Watch on Your Mobile
Devices Anytime and
Anywhere
Superior Broadband and Pay TV Product Offerings
Android Set-Top-Box
High Speed Upload
and Download1
Gbps
Symmetrical Upload
and Download Speed
Network Ability up to
10 Gbps
Media Sharing Ready
42
Robust Java Multimedia Superhighway to
Ensure Optimum Content Delivery and Expansion
Ready to use 6-core Indefeasible Right to Use (IRU) network that spans 1,165 kms from Jakarta
to Surabaya, and redundant south route to ensure maximum performance
It consists of 3 sections and 14 subsections with 15 Point of Presence (POP) for further
expansion of last-mile network in Java.
North Route
South
Route
43
Synergy & Value Creation Superior to Competition
Superior to
Competition
Notes
1 Also present in Bali (4th city) but focuses on corporate subscribers only
2 Right of way
PT MNC Sky Vision Tbk PT MNC Kabel MediakomPT MNC OTT
Indonesia
Leading DTH Player
Fastest Growing
Fixed Broadbrand
& IPTV Live TV and VOD
+ +
Superior to
Competition
45
OTT BusinessSection 7
46
MNC Now at a Glance
Home TV SeriesFilms
Offering the best of local entertainment anytime, anywhere...More than 80 channels of live TV channels
7-day Catch-Up TV
More than 4,000 hours of on-demand entertainment
Free value-added service to eligible subscribers of MNC Play and MNC Vision
Available on compatible Android and iOS devices
Financial Update Global MediacomSection 9
BMTR Financial Statements FY 2017 VS 2016
48
Consolidated revenues increased by 4% in FY17 (YoY) mainly derived from FTA and content revenue which increased by 5% in FY17 (YoY).
EBITDA increased by 23% in FY17 (YoY) mainly due to contribution from FTA and content revenue, and lowerProgram Cost. Hence, EBITDA Margin improved to 40% in FY17.
Increase in Net Income margin from 2% (FY16) to 5% (FY17) due to improvement in operating income during 2017 while foreign exchange exposure remained insignificant.
Income Statements
In IDR Bio FY17 FY16
Revenues 10,829 10,460 4%
Advertising & content based 6,859 6,504 5%
Subscribers based media 3,141 3,018 4%
Online based media 657 772 -15%
Others 172 166 4%
Direct cost 5,547 6,240 -11%
Gross profit 5,282 4,220 25%
Gross profit margin 49% 40% 8%
Operating expense 2,435 2,175 12%
Depreciation & amortization 1,445 1,437 1%
EBITDA 4,292 3,482 23%
EBITDA margin 40% 33% 6%
Income from Operations 2,184 1,842 19%
(Loss)/gain on foreign exchange - net (121) 232
Net income (loss) attributable to parent 494 204 142%
Net income (loss) margin 5% 2% 3%
∆ Non Cash :
Depreciation (35)
Forex 225
Deferred Tax 55
Total ∆ Non Cash 245
Normalized Net Income -
attributable to parent 739 204 262%
ActualVar.
Thank You
For further information, please contact Investor Relations Division:
Christy Kusuma [email protected]
David F. [email protected]
PT Global Mediacom TbkMNC Tower 29th Floor
Jl Kebon Sirih No.17-19Jakarta 10340, Indonesia
Tel: 62-21 3913338Fax: 62-21 3910454
Website: www.mncgroup.com