AGM Presentation 23 April 2013

MEDIA PRIMA BERHAD
ANNUAL GENERAL MEETING
Financial & Business Review
For the Financial Year Ended
31 December 2012
23 April 2013
1
TABLE OF CONTENTS
MEDIA
BERHAD
SECTION 1PRIMA
OVERVIEW
SECTION 2
SECTION 3
SECTION 4
SECTION 5
PERFORMANCE REVIEW
DIVIDENDS
CORPORATE GOVERNANCE &
CORPORATE RESPONSIBILTY
OUTLOOK FOR 2013 & BEYOND
2
Section 1
OVERVIEW
3
MEDIA PRIMA BERHAD TODAY
Television
Broadcasting
Print Media
Outdoor Media
98%
100%
Radio
100%
100%
Content
Creation
100%
Digital
100%
100%
100%
100%
100%
80%
100%
100%
100%
Media Prima Fact Sheet @ 31/12/2012
Issued and paid-up share capital
RM1,079.7m
Shareholders funds
RM1,547.3m
Total assets
RM2,668.2m
Cash
RM682.4m
Group borrowings
RM682.7m
PDS Ratings (RAM)
AAAbg (MTN), P1 (CP)
4
TOTAL REACH UNDER MEDIA PRIMA PLATFORM
TV NETWORKS
VIEWERS (MILLION)
8.05
2.58
2.10
3.91
RADIO NETWORKS
LISTENERS (MILLION)
3.43
92% of Malaysian
population starting
from as young as 4
years old are on MPB
media platforms daily
0.56
0.86
OUTDOOR
TRAFFIC (MILLION)
2.00
PRINT
READERS (MILLION)
0.30
1.38
4.44
TOTAL (including new media)
>24 Mil
Source: Nielsen Media Research
5
Section 2
PERFORMANCE REVIEW
6
Section 2.1
MEDIA PRIMA GROUP
7
CONSOLIDATED RESULTS FY 2012
RM '000
GROSS REVENUE
NET REVENUE
ROYALTIES
NET REVENUE AFTER ROYALTIES
DIRECT COSTS
CONTRIBUTION
OTHER INCOME
OVERHEADS
EBITDA
FINANCE COSTS
DEPRECIATION AND AMORTISATION
PROFIT BEFORE ASSOCIATE
SHARE OF ASSOCIATE'S RESULTS
PROFIT BEFORE TAX
TAXATION
PROFIT AFTER TAX
MINORITY INTEREST
NET GAINS FROM SUBSIDIARIES FOR SALE
GAIN ON DISPOSAL OF SUBSIDIARY ACQUIRED EXCLUSIVELY FOR SALE
PATAMI
FY 2012
FY 2011
2,013,558
1,697,845
(3,847)
1,693,998
(546,662)
1,147,336
21,468
(763,961)
404,843
(27,451)
(102,373)
275,019
7,926
282,945
(71,967)
210,978
(2,000)
334
209,312
1,933,669
1,622,133
(3,753)
1,618,380
(509,239)
1,109,141
18,119
(723,116)
404,144
(32,085)
(97,423)
274,636
3,107
277,743
(71,418)
206,325
(1,992)
1,528
724
206,585
EBITDA margin %
24%
25%
PATAMI margin %
12%
13%
25.4%
25.7%
Effective Tax Rate %
%
4
5
(3)
5
(7)
3
18
(6)
0 .2
14
(5)
0
>100
2
(1)
2
0
(100)
(54)
1
8
FINANCIAL HIGHLIGHTS OF 2012 CONSOLIDATED RESULTS
Net Revenue
Direct Cost
Overheads
EBITDA
+ 5%
+ 7%
+ 6%
+ 0.2%
PBT
+ 2%
PATAMI
+ 1%
RM1.7 bil
RM546.7 mil
RM764.0 mil
RM404.8 mil
RM282.9 mil
RM209.3 mil
9
MEDIA PRIMA GROUP REVENUE BY PLATFORM
Revenue Contribution FY 2011
Revenue Contribution FY 2012
Radio
4%
New Media
Others
2%
1%
Radio
4%
Outdoor
9%
Print
Circulation
16%
Outdoor
9%
TVN
42%
Print
Circulation
17%
Print Adex
Radio
TVN
42%
Print Ad
26%
Print Ad
27%
TVN
Outdoor
Others
New Media
1%
Others
1%
Print Circulation
New Media
TVN
Outdoor
Others
Print Ad
Radio
Print Circulation
New Media
10
FY 2012 RESULTS BY MEDIA PLATFORM
TV NETWORKS &
CONTENT CREATION
RADIO NETWORKS
PRINT MEDIA
 Revenue grew 4%
 Revenue grew by 8%
 Revenue grew by 4%
 EBITDA and PBT declined
by 1% and 2%
respectively
 EBITDA & PBT dropped
by 7%
 EBITDA grew by 4% and
PBT declined by 1%
OUTDOOR MEDIA
DIGITAL MEDIA
 Revenue grew by 6%
 Revenue grew by 74%
 EBITDA & PBT increased
by 2% and 5%
respectively
 EBITDA and PBT grew by
>100%
Note: NSTP’s e-Media results consolidated under Digital Media
11
CONTINUED IMPROVEMENT IN FINANCIAL PERFORMANCE
2008
2009
Net revenue (million)
781
744
1,547
1,622
1,694
EBITDA before EI (million)
208
156
392
404
405
PBT (million)
159
276
295
278
283
PATAMI Continuing Ops Before EI (million)
134
74
185
204
209
Weighted average
number of shares (million)
845.48
857.65
985.82
1,049.54
1,076.32
EBITDA margin excl. EI (%)
27
21
25
25
24
15.87
8.63
18.80
19.47
19.42
EPS excluding EI (sen)
Accumulated losses (million)
2010
(525)
(410)
(106)
NTA (million)
361
696
950
Gross gearing ratio
0.72
0.54
0.45
2011
(81)
1,093
0.35
2012
9.7
1,191
0.44
The Group is in a retained earnings position as at 31 December 2012.
Source: Media Prima financials
12
Section 2.2
TV NETWORKS
13
SEGMENTATION OF OUR TV CHANNELS
STATION
TARGET VIEWERS
POSITIONING
ADVERTISING FOCUS
Mass Market skewed
towards Malay audience,
with progressive mindsets
Channel synonymous with
family, real-life,
entertainment and news
content leaning towards
cultural proximity - "Inspirasi
Hidupku"
Fast moving consumer goods
("FMCG") products,
communications, services,
transportation
Malaysian Urban
Households; 25-45 years old;
Kids & Mass Chinese
Television as an escapade –
“My Feel Good Channel”
Brands targeting the
Malaysian Urban middle to
high class; image products
and lifestyle
Young Malaysian Urban15-24
years old ,
Mass Chinese
Tastemaker, energetic and
differentiation in content –
“We are different”
Brands targeting the Young
Urban; sports, energy drink,
fashion, and Chinese
viewers; health and wealth
related
Mass Market skewed
towards young semi-urban
and rural Malays
Young semi-urban Malays
skewed content with a
mixture of drama, real-life
and current affairs –
"Dekat Di Hati"
FMCG products, non
traditional advertisers,
government
14
TV AUDIENCE SHARE – FY 2012
Dominant Position Across All Stations/Channels
5%
6%
5%
8%
26%
Source: Nielsen Audience Measurement (4+)
7%
2%
4%
4%
3%
2%
2%
1%
1%
1%
<1%
15
TOP 10 CHANNELS WATCHED (JAN-DEC 2012)
MPB channels remain the LEADER among key markets
STN
TOTAL 4+
Jan-Dec 2012 STN
Jan-Dec 2011 STN
CHINESE 4+
Jan-Dec 2012 STN
Jan-Dec 2011 STN
MALAY 15+
Jan-Dec 2012 STN
Jan-Dec 2011
1 TV3
26
TV3
28
8TV
26
8TV
24
TV3
35
TV3
38
2 TV9
8
TV2
8
ntv7
18
ntv7
19
TV9
10
TV9
10
3 TV2
7
TV9
8
HUAHEE
8
HUAHEE
9
TV2
8
TV2
10
4 8TV
6
8TV
6
WLT
7
WLT
6
TV1
7
TV1
8
5 TV1
5
ntv7
5
AEC
5
AEC
5
RIA
5
RIA
5
6 ntv7
5
TV1
5
TV2
4
TV2
4
PRIMA
4
PRIMA
5
7 RIA
4
RIA
4
XHE
3
XHE
3
CERIA
3
CERIA
3
8 SUN-TV
3
SUN-TV
4
TV3
3
TV3
3
WARNA
3
ntv7
2
9 PRIMA
3
PRIMA
3
SHX
2
TVBC
2
CITRA
2
8TV
2
10 CERIA
3
CERIA
3
TVBC
2
SHX
2
ntv7
2
WARNA
2
ALL CHANNELS- PAY TV & FTA TV
Source: Nielsen Audience Measurement
16
Section 2.3
PRINT MEDIA
17
SEGMENTATION OF OUR NEWSPAPERS
NEWSPAPER
TARGET VIEWERS
POSITIONING
ADVERTISING
FOCUS
New Malays, young age
20-39 years old,
dynamic and
progressive Malaysian
Malay Daily
Young people who are
looking for
entertainment,
shopping news and
lifestyle features
FMCG products,
communications,
services,
transportation
From all walks of life,
working class to
students, housewives,
business people and
decision makers
Malay Daily
People who have an
open mind and are
drawn to new and
interesting products
and serviceS
FMCG products,
government, services
Influential newspaper
addressed to
government and
corporate sectors, the
intelligentsia, young
professional and
students
English Daily
Authoritative
newspaper that is
responsible for the
well-being and
progress of the nation
in all fields. “The
Newspaper of The
Nation”
Targeting the
Malaysian Urban
middle to high class;
image products and
lifestyle
BRANDING
CLEAR SEGMENTATION STRATEGY
Giving advertisers and readers what they want to capture - greater share of readership & advertising revenue
18
GROWING CONTRIBUTION FROM THE MALAY MARKET
Industry Adex
NSTP Advertising Revenue Trend FY 2012
RM million
1%
5%
5%
18%
13%
Media Prima’s Net Revenue Adex By Platform
Revenue Contribution FY 2012
3%
9%
6%
7%
43%
Despite the overall market contraction for print, our print Adex
continues to grow, driven by the growing Bahasa market & our
Group’s strength in this sector.
In line with growing readership, Malay language continue to
grow its Adex market share. Malay newspapers will continue to 19
be the main driver to revenue growth.
HARIAN METRO – A MAJOR SUCCESS
Adex has shown >100% growth in 5 years until 2012
450,000
400,000
401,773
350,000
300,000
328,850
393,050
394,026
356,341
250,000
200,000
198,452
160,750
150,000
100,000
218,962
100,700
118,310
50,000
2008
2009
2010
Daily Circulation Copies (ABC)
2011
2012
Adex (RM '000)
20
Section 2.4
RADIO NETWORKS
21
SEGMENTATION OF OUR RADIO STATIONS
STATION
TARGET LISTENERS
POSITIONING
ADVERTISING FOCUS
Malay listeners aged
between 15 to 35 years old
Malay Radio Station
Students and urban
professionals who love
entertainment, gossips, the
hottest music, social medium
users and trendsetters
Brands targeting Malay
youth, telecommunications,
FMCG
Urban listeners age 15 to 35
years old, mainly students
and young adults.
English Radio Station
Targeting urban listeners
below the age of 35 who are
tech savvy and keeps
themselves in the music
trend, latest entertainment
scoop and loves
unpredictability.
Brands targeting urban
youth, telecommunications,
lifestyle
Chinese listeners aged
between 15 to 35 years old
Chinese Radio Station
Urban listeners who are
music enthusiasts that are
tech savvy and loves the
latest news in entertainment.
Brands targeting Chinese
youth, telecommunications,
FMCG
22
RADIO - PERFORMANCE RATINGS
#3 Overall Malay
Source: Nielsen Advertising Information Service (AIS) 23
RADIO - PERFORMANCE RATINGS
#2 Overall English
#1 Chinese Radio for Age 18-24
24
Source: Nielsen Advertising Information Service (AIS)
Section 2.5
OUTDOOR MEDIA
25
OUR OUTDOOR MARKET SHARE OF 44%
17%
Big Tree
Redberry
1%
1%
2%
4%
Seni Jaya
BIG TREE
44%
Spectrum
Alloy
Ganad
4%
Ambient
Danwan
5%
Gelumbang
Others
5%
17%
Source: Company Search and Due Diligence
26
OUR OUTDOOR COVERAGE
A. Several exclusive outdoor media rights in:
i.
Expressways;
ii.
Transit lines;
iii.
Retail malls;
iv.
Airports; and
v.
Key city and town sites.
B. Largest outdoor company with presence all over Malaysia with 44% market share with more than 8,000 sites throughout
Malaysia.
C. New products and new markets
- Digital screens
- Premium locations
27
DIGITAL ROLLOUT- KUCHING INTERNATIONAL AIRPORT, KOTA
KINABALU INTERNATIONAL AIRPORT, THE CURVE & SURIA KLCC
28
NEW HIGH-END PRODUCTS & PREMIUM LOCATIONS
LEXUS (KLCC-PAVILION ELEVATED WALKWAY)
KLCC CONVENTION CENTRE EXTENDED TUNNEL
29
Section 2.6
DIGITAL
30
ONLINE PORTALS : MPB WEBSITE RANKINGS
Top 10 Malaysian Sites
DECEMBER 2011
DECEMBER 2012
Rank
Total Unique Visitors
(‘000)
Rank
Total Unique Visitors
(‘000)
MUDAH.MY
1
2,814
1
2,813
Media Prima Group
2
2,407
2
2,346
Maybank Group
3
1,953
3
1,982
Maxis Group
4
1,596
4
1,372
Star Publications (M) Bhd
5
1,579
5
1,327
CIMB Group
7
1,083
6
1,189
Tune Group
6
1,431
7
1,152
LOWYAT.NET
12
889
8
1,112
CARI.COM.MY
8
1,064
9
1,085
Malaysiakini Sites
9
1,001
10
887
Site
SOURCE: comScore Key Measures
MEDIA PRIMA GROUP IS RANKED #2 IN DECEMBER 2012
31
VIDEO VIEWS & POPULAR PROGRAMS
2.38 million registered
Over 2.8 million registered
users users
32
ONLINE PAPERS
33
DIGITAL PAPERS
Digital version of print.
For iPad, Android & Web Browser.
Launched on 1 July 2012
34
CONTENT ON
English Content
Asian Content
Local Content
35
NEW ON

Launched 24th May 2012.

Catch up content with TV networks

Library of content from the 80’s cartoon to
the current hit series. Some titles will be
exclusive & not seen on TV.

Learning made easy, anytime, anywhere

Content include UPSR, PMR and SPM, preschool content that is educational and
entertaining at the same time like the
famous animation Dong Dong and Canimals
 Variety of sports content exclusive online!
 Content include Footballers lives, Up Close
With, Top 20, Untold Stories, Legend, Sports
& Celebs, My passion, My Style, Fighting
Spirits, Premier League – Greatest Goal,
Skill factor and many more.
 EURO 2012 - Live Streaming & 48 hours
Catch Up of 16 matches
36
Section 2.7
CONTENT CREATION
37
NON-ADEX REVENUE VIA CONTENT
sell to
sell to
HO CHAK
Malay Islamic sitcom
sell to
For 2012, one of PWS’s target key performance indicator (KPI) is to
produce content which are to be sold to 3rd parties
38
Section 3
DIVIDENDS
39
PROPOSED DIVIDEND FYE 2012
Proposed final single tier dividend of 7.0 sen for FYE 31 December 2012 (subject to
shareholders’ approval at this AGM)
PATAMI (RM'000)
PATAMI - Continuing operations (RM'000)
Estimated Share capital ('000) as at entitlement date
Proposed Final Dividend (RM'000)
First Interim Single Tier Dividend per share (sen) paid on 28 September
Second Interim Single Tier Dividend per share (sen) paid on 28 December 2012
Final Single Tier Dividend per share (sen) subject to approval by members at AGM
Total (sen)
Dividend* Yield
Dividend* Pay-Out Ratio (over PATAMI)
Dividend Pay-Out Policy (over PATAMI)
* Excludes special dividends
Final Dividend for
FYE 2012
209,312
208,978
1,179,144
82,540
3.00
3.00
7.00
13.00
5.6%
70.4%
25% to 75%
40
DIVIDEND TRACK RECORD OVER 3 YEARS
59.2%
Pay-Out Ratio
(% of PATAMI)
Dividend Yield (%)
70.4%
45.4%
5.6%
3.8%
4.2%
16.00
13.00
13.00
11.00
10.00
10.00
Net Dividend
Declared
(sen)
2010
2011
2012
Net Dividend Declared (include Special Dividend) (sen)
Net Dividend Declared (excluding Special Dividend) (Sen)
41
Section 4
CORPORATE GOVERNANCE & CORPORATE RESPONSIBILITY
42
OUR COMMITMENT TOWARDS GOOD CORPORATE GOVERNANCE
MPB BOARD OF DIRECTORS
The Board has ten (10) members of which
three (3) are Executive Directors and seven
(7) are Non-Executive Directors.
 The Independent Non-Executive Directors make up 50% of the Board membership.
 Size of the Board is optimum given the scope and size of the Group.
 Size of the Board is sufficient to provide for effective decision-making with a substantial
degree of independence from management.
 All of the Group’s operating companies have separate and independent boards.
43
SIGNIFICANT AWARDS/ RECOGNITION
Asiamoney Corporate Governance Poll
2012
1. Best for Overall Corporate Governance
2. Best for Disclosure and Transparency
3. Best for Responsibility of Management
and the Board of Directors
4. Best for Shareholders Right and Equitable
Treatment
5. Best for Investor Relations
Asia Pacific Young Business Conference
2012
1. CSR Leadership Award
44
CREATING VALUE FOR OUR STAKEHOLDERS
FOCUS
Education
Humanitarian
Other
Community
Initiatives
PROGRAMMES








Promoting Intelligence, Nurturing Talent & Advocating Responsibility (PINTAR)
RHB New Straits Times National Spell it Right Challenge
English Development Programs
Examination Workshops and Seminars
Akhbar Dalam Darjah (ADD) Workshops
NST-NIE Activities
Journalism on Campus
School Times




Tabung Wira Lahad Datu
TV3 Bersamamu Funds
NSTP Charity Fund
Tabung Bencana NSTP-Media Prima




ntv7 Feel Good Run & Autism Campaign
Semarak Ramadhan – Berita Harian
Hangatkan Sekolahku
Hot FM Kita Punya
“A BUSINESS THAT MAKES NOTHING BUT MONEY, IS A POOR BUSINESS”
45
Section 5
OUTLOOK & CONCLUSIONS
46
OUTLOOK FY 2013 – WAY FORWARD
MPB Group
 1st and largest integrated media group in ASEAN.
 Strong presence across its media platforms
 Offer a complete “solution” for customized marketing & branding
TV Networks
 Maintain dominant position in viewership shares
 Investment in quality programming & branding – Premium Content
 Investment in local content
Print Media
 No. 1 in terms of readership in a growing Bahasa market
 Bahasa papers – major & growing contributor to NSTP
 Continuous improvement on printing yield
Radio Networks
 Hot FM – No.2 among all stations & No. 1 across its key demographics
 Building new talent
Outdoor Media
 Continue investment in high yield/return assets i.e. digital and new
market
Digital
 Merge online expertise with strong offline brands
 Monetise our online portals & online subscription business
Content Creation  Production of Malaysian content for external clients and international
markets.
 Develop HD content
47
AN INTEGRATED MEDIA GROUP
TV
LARGEST reach in
terms of TV
viewership
NEWSPAPER
RADIO
#2nd LARGEST reach
in terms of combined
radio channel
listeners’ numbers
LARGEST reach in
terms of newspaper
circulation and
readership in
Peninsular Malaysia
NSTP’S
OUTDOOR
DIGITAL
One of the LARGEST
share of advertising
revenue in the
outdoor media
industry
Media avenue
reaching out to
INTERNET based
viewership
CONTENT CREATION
<----------------- Boasts the Widest Multimedia Distribution Offering on a Single Integrated Platform ----------->
48
49
Note:
The presentation may contain forward-looking statements which are based on MPB's current
expectations, forecasts and assumptions based on management's good faith expectations and
belief concerning future developments. In some cases forward-looking statements may be
identified by forward-looking words like “would”, “intend”, “hope”, “will”, “may”,“should”,
“expect”, “anticipate”, “believe”, “estimate”, “predict”, “continue”, or similar words. Forwardlooking statements involve risks and uncertainties which could cause actual outcomes and
results to differ materially from MPB's expectations, forecasts and assumptions. We caution that
these forward-looking statements are not statements of historical facts and are subject to risks
and uncertainties not in the control of MPB, including, without limitation, economic,
competitive, governmental, regulatory, technological and other factors that may affect MPB's
operations. Unless otherwise required by law, MPB disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, future
events, or otherwise. Although we believe the expectations reflected in forward-looking
statements are reasonable we cannot guarantee future results, levels of activity, performance or
achievements.
50