MNCN Corporate Update 2014 January

Listed and traded on the Indonesia Stock Exchange
STOCK CODE: MNCN
www.mncgroup.com
PT Media Nusantara Citra Tbk.
Corporate Update
January 2014
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2
www.mncgroup.com
Section 1
Indonesia’s Media Industry Update
Table
of Content
Section 2
MNC Update
Section 3
Financial Update MNC
www.mncgroup.com
Section1
Indonesia’s Media Industry Update
Macro drivers support industry growth
Population (2012)
A Young Population : 80% - Below 50yr
What are the macro drivers?
3%
Millions
1,361
 A large & young population
13%
29%
1,223
 200mn people below age of 50
 A rising middle class
244
95
69
29
23
5
 Strong economic growth driven
29%
by domestic consumption
26%
0-14
Source: MPA 2013
30-49
50-69
Source: Indonesia Bureau of Statistics 2012
Completed Education Level
NA
22%
15-29
University
4%
Monthly Household Expenditure (Rp1,000)
E <600
5%
Academy
3%
D 601900
13%
A1 3500
6% A2 2501-
3500
9%
Senior High
29%
 Only 4% of population has
university degrees
 Indonesians prefer to watch TV
than to read, watching 5 hours
of TV per day.
C1 12511750
26%
Junior High
19%
Source: Indonesia Bureau of Statistics 2012
 40mn TV household
B 17512500
20%
C2 9011250
21%
Elementary
23%
70+
Source: Nielsen Media Research
5
Indonesia’s ad spend growth highest in region
 Media Partners Asia forecasts net ad spend growth of 15.8% in 2013
 Growth is among the highest in the region
 Indonesia’s ad spend is growing from a small base; we expect growth to be sustainable
Asia Pacific Net Adspend (2011 – 2013F)
Asia Pacific Net Adspend Growth (2011-2013F)
In USD billion
2011
2013F
2011
2013F
Source: Media Partners Asia 2012
6
Well Positioned in a Conducive Growth Environment
 Net adspend as % of GDP is the lowest in the region indicating solid growth potential
 The price for a 30 seconds prime time spot is cheap compare to other ASEAN countries
Net Adspend as a Percentage of GDP (2011)
Price of 30 seconds prime time spot in the region
In USD/spot
0.9%
$12,000
0.7%
0.7%
0.6%
$10,000
0.6% 0.5%
0.5%
0.4% 0.4%
$6,000
0.3% 0.3% 0.3%
0.3%
0.2%
Indonesia
Thailand
Philippines
Source: Media Partners Asia 2012
7
Industry Dynamics
 Prime time advertising slots are limited; strong demand for advertising
 Local brands have been aggressive in advertising to compete with multi national companies
 We expect automotive and financial companies to increase TV advertising budget
Limited supply: Only 10 FTA TV stations
Demand (More brands advertising on TV)
3%
10%
40%
24%
MNC Group
EMTEK
Trans Corp
Visi Media
Other
23%
Source: Nielsen Prime time all demographic YTD December 2013
8
Low Penetration Rates in Key Segments
Asia Pacific TV Penetration of Total Households (2010F-2014F)
100%100% 100% 100% 100%100%
Korea
Japan
99% 100%
98% 100%
Singapore Hong Kong Malaysia
97% 98%
Australia
Newspaper Circulation in Indonesia
6.0
Millions
2010F
94% 95%
China
93% 94%
Thailand
91% 92%
Taiwan
84% 84%
Vietnam
2014F
76% 78%
Philippines
61% 62%
56% 59%
India
Indonesia
Internet Household Penetration in Indonesia
6.0
30.2%
27.1%
5.9
23.7%
5.8
18.0%
20.5%
5.7
2010F
2011F
Source: Media Partners Asia 2010
2012F
2013F
2014F
2010F
2011F
2012F
2013F
2014F
Source: Media Partners Asia 2010
9
Indonesia’s Media Advertising Market Share
 Given the infrastructure constraint, TV is the only medium to reach a mass audience. TV
advertising is expected to maintain a dominant market share
 Online advertising to take market share from Newspaper and Magazine
2016F
2012
Online; 3.6%
OOH, 2.2%
OOH, 2.0%
Online, 6.5%
Radio, 1.5%
Magazine; 2.9%
Radio, 1.2%
Magazine, 2.4%
Newspaper,
20.7%
Newspaper,
17.5%
TV; 69.1%
TV, 70.4%
Source: Media Partners Asia 2012
10
www.mncgroup.com
Section 2
MNC Update
The Largest Integrated Media Company in Indonesia
Content
Free-To-Air TV
RCTI
MNCTV
Global TV
MNC
Pictures
Sindo Media
Star Media
Nusantara
Local TV
Network
Newspaper
Others
Tabloid &
Magazine
Radio
MNC
Networks
MNC
Channels
National & Regional
Radio
News
Portal
More channels will be added
Content llibrary contains more than
130,000 hours and increasing by
more than 15,000 hours per year
Sindo
Weekly
12
Our 4 key growth drivers
RCTI, the #1 TV station, will drive the
overall industry growth
Successfully turned around MNCTV;
higher ad rates to follow.
Focus to improve ratings at Global TV
18 exclusive channels on MNC Skyvision
to generate ad revenue
Rebrand 38 local TV stations as 4th
national TV “SINDO TV”, launching Q2 13
13
MNC ad revenue growth outperforming the industry
MNCTV is under earning VS competitors
Opportunity for
ad rate increases
Dominant TV Player in Indonesia

RCTI has consistently been the # 1 TV station in
Indonesia since its inception in 1989.

RCTI, MNC TV and Global TV cumulatively
control 40% audience share during prime time

In 2012, our group experienced 22.0%
advertising revenue growth, outperforming the
industry growth rate of 15.5%, driven by RCTI
and MNC TV


Change in programming strategy paid off at MNC
TV. Viewership ranking jumped to #2 in 2012
from #6 in 2011. We see considerable scope for
increased advertising revenue at MNCTV as ad
rates are still much lower compare to RCTI
100%
65%
31%
Competitor
MNC TV
Global TV
2012 advertising revenue growth
22.0%
Focus is now to turnaround Global TV
15.5%
MNC Group
Industry Peers
14
Content is King
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

Content is the only way to capture audience share
and monetize advertising dollars

Indonesians love “Sinetrons” and we broadcast
many of the top drama series

We have licensed popular International programs
such as Master Chef, Indonesia Idol and X Factor
Rank

Exclusive programming with top Hollywood studios

More than 130,000 hours of content library and
increasing by more than 15,000 hours annually

We also have 18 MNC branded Pay TV Channels.
These channels are integral to our content strategy
1
2
3
4
5
6
7
8
9
10
Primetime Nielsen TV stations ranking
Station
RCTI
SCTV
TransTV
MNCTV
Trans7
IVM
ANTV
GTV
TVOne
MetroTV
Target
Audience
2011*
YTD Dec
2013
Share
Share
ABC
ABCD
ABC
ABCD
ABC
ABCD
ABC
ABC
ABC
AB
21.8
14.3
13.3
10.4
10.5
11.6
5.8
6.2
3.3
2.0
21.5
13.8
12.3
12.2
11.6
8.7
6.5
6.4
3.8
2.0
Source: Nielsen Monthly Prime Time All Demographic Audience Share
15
MNC’s TV Programs Dominate in all Genre
Number of MNC’s Programs in the Top 20 for National FTA TVs
(January to December 2012)
All Programs
16/20
Housewives
14/20
Sports
16/20
Series
14/20
Talent Search
15/20
Animation
20/20
Source: Nielsen
16
MNC Drama Series occupied 8 out of 10 spots
Top 10 Drama Series January-June 2013
Station
Rating
Share
1
TUKANG BUBUR NAIK HAJI THE SERIES
RCTI
6.2
25.2
2
BERKAH
RCTI
4.1
17.8
3
RADEN KIAN SANTANG
MNCTV
3.8
16.0
4
CINTA TUJUH SUSUN
RCTI
3.5
16.6
5
MONYET CANTIK 2
SCTV
3.4
14.3
6
YANG MUDA YANG BERCINTA
RCTI
3.4
20.4
7
JODOHKU
RCTI
3.4
15.2
8
GAJAH MADA
MNCTV
3.2
12.3
9
TANGAN-TANGAN MUNGIL
RCTI
3.2
18.3
10
PUTIH ABU-ABU 2
SCTV
3.2
12.6
17
Other Top Reality TV Series
18
The most comprehensive Pay TV Channels lineup
 We have the most comprehensive Pay TV channel lineup in Indonesia
 Our customers prefer local content
 Producing content in Bahasa Indonesia is our competitive advantage
 We generate subscription revenue and advertising revenue
Sports
Movies
Lifestyle
News
Entertainment
Kids
Local content
means it is the leader in its Pay TV category
19
Pay TV Channels to drive ad revenue for MNCN
OPPORTUNITIES



MNC Channels share of Pay TV audience in 1Q 2013
MNCN has produced and packaged 17 Pay TV
channels exclusively for MNC Sky Vision. In return
MNCN receives 100% ad revenue
MNC Sports, MNC Entertainment, MNC News and
MNC Business are # 1 ranked in their respective
categories versus International peers
MNC Food & Travel was recently launched. We will
add 3 more channels: MNC Kids, MNC Home and
MNC Wedding
Rank Sports Channel
We expect MNC Channels to generate meaningful
advertising revenue as subscribers grow
Rank News Channel
Channel Share
1 MNC Sports 2
4.12
1 MNC News
1.68
2 MNC Sports 1
2.83
2 Al Jazeera
0.04
3 Star Sports
2.19
3 BBC
0.02
4 Fox Sports
0.80
4 CNN
0.01
Rank Lifestyle Channel
Channel Share
1 MNC Infotainment
2.72
1 MNC Music
2.06
2 MNC Lifestyle
2.10
2 Channel V
0.18
3 Asian Food Channel
0.46
3 NGC Music
0.36
4 Fashion TV
0.26
4 Trace
0.01
Rank Entertainment Channel

Channel Share
Channel Share
Rank Music Channel
Rank Business Channel
Channel Share
Channel Share
1 S-One
4.73
1 MNC Business
0.32
2 MNC Entertainment
4.43
2 Bloomberg
0.00
3 Fox Channel
1.87
3 CNBC Asia
0.00
4 AXN
1.50
Source : Nielsen TV Audience Measurement 1Q 2013
22%
MNC Channels
Rest of market
78%
20
Strong Market Position with
Superior Content Capabilities (cont’d)
Strong Presence in Print Media
Leading Radio Stations in Indonesia
 In 5 years following the launch in
2005, Seputar Indonesia has become the
2nd largest newspaper in Jakarta and the 3rd
largest in Indonesia
 The remaining 5 of the top 6 newspapers in
Indonesia have been in circulation for more
than 30 years on average
 Tabloids / magazines published by us are
popular among readers
- Genie is the third largest tabloid by
readership
 36 radio stations in 4 different formats
consistently ranked #1 or 2 in their
respective genres / targeted audience
- Sindo Radio - #1 news station
- Radio Dangdut Indonesia - #2 station for
middle / low income segments
- ARH Global - #1 choice amongst young
listeners
- V Radio – female radio station
Wave #4 2010
Total Audience in Jakarta
1294
427
169
Kompas
Seputar
Indonesia
Koran
Tempo
128
Republika
117
38
Media
Bisnis
Indonesia Indonesia
Source: Nielsen Media Index, figures refer to circulation in Jakarta only
1
SINDO RADIO
472.000
2
DELTA
159.000
3
PAS
149.000
4
SMART
< 1.000
1
ARH GLOBAL
747.000
2
MUSTANG
579.000
3
PRAMBORS
443.000
4
99ERS FM
352.000
1
RDI
4.007.000
2
BENS
3.075.000
3
GEN FM
3.031.000
4
MEGASWARA
1.953.000
Source: Nielsen Media Research
21
Highly Qualified and Experienced Management Team
Hary Tanoesoedibjo
CEO, MNC Group



21 years of relevant
experience


Kanti Mirdiati Imansyah
Director
Group President & CEO of MNC since March 2004
Founding shareholder and Group Executive Chairman of PT Bhakti Investama Tbk. since 1989
Currently holds positions in several other companies, including Group President & CEO of PT Global Mediacom Tbk. since
2002, President Commissioner of RCTI since 2008, President Commissioner of PT MNC Sky Vision (Indovision), President
Commissioner of Media Nusantara Informasi since 2008, President Commissioner of MNC Networks since 2008, President
Commissioner of MNC Pictures since 2007, and many other companies within MNC Media and Bhakti Investama Group
MBA degree from Ottawa University, Canada
Bachelor of Commerce (Honors) degree from Carleton University, Ottawa, Canada







Director Sales and marketing of RCTI from 2010 – 2012
GM Sales and Marketing manager and Director Sales and Marketing of CTPI from 2006-2010
AVP Sales and Marketing of Duta Visual Mandiri from 2003-2006
Head of Acquisition Manager of RCTI from 2002 – 2003
Sales Group Head Trans TV from 2000 – 2003
Sales Group Head & Account Executive1990 – 2000
Bachelor Degree of Science from La Jolla Academy of Advertising Arts and Associate Degree Fashion Merchandising from
IFS San Diego, USA
Jarod Suwahjo
CFO, MNC Group



21 years of relevant
experience



Director of GlobalTv from 2009 – 2012.
CFO PT Media Nusantara Citra Tbk from 2007-2009
Prior to joining MNC, Pak Jarod was a Financial Controller in Sanovi Adventis, GlaxosmithKline, National Food Juice and
Heinz.
He is a Chartered Accountant from NZCA
Post Grad Diploma Accounting from Victoria University of Wellington (New Zealand)
Bsc in Operation Research from Victoria University of Wellington (New Zealand)
23 years of relevant
experience
Nana Puspa Dewi
Director
24 years of relevant
experience




Joined MNC in 2007 after spending 21 years in the consumer goods industry with major FMCG companies such as Procter &
Gamble, Mars Inc., Mayora and Cadbury
Prior to joining MNC, Ibu Nana was Managing Director of Cadbury Indonesia
Has many years of experience in market research, sales & marketing and general management
Degree in Economy in Management from Udayana University, Indonesia
22
www.mncgroup.com
Section 4
Financial Update MNC
(Audited FY 2012 & Unaudited 9M 2013)
Financial Performance from 12M 2010 (Audited) until
12M 2012 (Audited)
12M 2010 to 12M 2012 Financials
2010
IDR trillion
2011
8.20
CAGR +14%
CAGR +5%
8.80
CAGR +16%
8.96
6.83
6.27
CAGR +30%
5.39
4.86
2012
1.48
Revenue
1.86
7,30
5.44
2.52
EBITDA
Asset
Equity
12M 2010 to 12M 2012 Solvency Metrics
2010
2011
2012
55.83x
30% 35%
30%
1.13x
0.46x 0.30x
Debt / EBIDA
Source: Company Financials
12% 10%
Debt / Equity
40%
33%
40% 43%
51% 50%
41%
11.66x
6.60x
EBITDA / Interest
EBITDA Margin
3 TV EBITDA Margin
RCTI EBITDA Margin
24
Segmental Overview – Revenue
12M 2012
3% 3%
Split by TV Network
8%
1%
3%
14%
Tv Station
Print Ads
RCTI
Radio Ads
MNC TV
Non Ad Revenue
VAS
GTV
29%
Content
82%
57%
12M 2011
10%
2%
Split by TV Network
6%
TV Station
1%
15%
Print Ads
3%
Radio Ads
RCTI
Non ad Revenue
MNC TV
VAS
GTV
Content
78%
24%
61%
25
Segmental Overview –EBITDA
12M 2012
0% 1% 5%
1%
Split by TV Network
8%
TV Station
Print Ads
27%
RCTI
Radio Ads
MNC TV
Non ads Revenue
GTV
VAS & content
65%
93%
12M 2011
0%
1%
0%
2%
Split by TV Network
7%
TV Station
16%
Print Ads
RCTI
Radio Ads
MNCTV
Non ad Revenues
GTV
VAS & content
77%
96%
26
Financial Performance from 9M 2011 until 9M 2013
9M 2011 to 9M 2013 Financials
9M 2011
IDR trillion
9M 2012
9M 2013
CAGR +9%
9.6
8.1
7.7
CAGR +10%
3.9
4.5
CAGR +12%
8.5
6.1
6.7
4.8
CAGR +14%
1.4
Revenue
2,0
1,9
EBITDA
Total Assets
Equity
9M 2011 to 9M 2013 Solvency Metrics
9M 2011
9M 2012
9M 2013
66.2x
38.8x
9.9x
0.4x 0.3x
0.2x
14% 12% 8%
Debt/EBITDA
Debt/Equity
Source: Company Financials
EBITDA/Interest
37% 41% 43%
43% 42% 45%
52% 49% 51%
EBITDA Margin
3 TV EBITDA Margin
RCTI EBITDA Margin
27
Segmental Overview – Revenue 9M 2013 & 9M 2012
Revenue 9M 2013
7% 2%
4%
Revenue Contribution By TV Network
1%
14%
TV Station
Print Ads
Radio Ads
RCTI
Non ad Revenue
MNCTV
30%
Content & VAS
GTV
87%
56%
Revenue 9M 2012
6%
Revenue Contribution By TV Network
0% 6%
14%
3%
TV Station
Print Ads
Radio Ads
RCTI
28%
MNCTV
Non ad Revenue
Content & VAS
58%
GTV
85%
28
EBITDA Per Segment 9M 2013 & 9M 2012
EBITDA 9M 2013
EBITDA Contribution By TV Network
9%
TV Station
Print Ads
Radio Ads
25%
RCTI
MNCTV
Non ad Revenue
GTV
Content & VAS
66%
100%
EBITDA 9M 2012
EBITDA Contribution By TV Network
11%
0%
1%
0%
9%
TV Station
Print Ads
Radio Ads
RCTI
25%
MNCTV
Non ad Revenue
Content & VAS
67%
GTV
88%
29
Summary of Financial Performance FY 2011 & 2012 (Audited)
– 9M 2012 & 9M 2013 (Unaudited)
IDR billion
12M 2011
12M 2012
%chg
9M 2012
9M 2013
%chg
5,390
6,265
16%
4,463
4,749
6%
4,418
5,351
21%
3,944
4,373
11%
-
-
-
3,781
4,373
16%
Content
93
197
111%
54
76
41%
Value Added
Services
536
217
-60%
216
0
-100%
Others
343
500
46%
248
301
21%
Operating expenses
3,808
4,050
6%
3,025
2,984
-1%
Core EBITDA
1,863
2,518
35%
1,590
1,883
18%
Core EBITDA Margin
35%
40%
36%
40%
Net Income
1,070
1,657
1,168
1,270
Revenue
Advertising
Advertising
excluding Euro Cup
55%
9%
30
Thank You