MAJOR CINEPLEX GROUP PLC. LIFESTYLE entertainment Analyst Meeting 3Q15 Paragon Cineplex, 9 th November 2015 Quarterly Briefing 3Q15
MAJOR CINEPLEX GROUP PLC.
LIFESTYLEentertainment
Analyst Meeting 3Q15Paragon Cineplex, 9th November 2015
Quarterly Briefing
3Q15
Financial Highlights3Q15 QUARTERLY BRIEFING
• Revenue growth from Blockbuster movies , New branches , increasing of guest count in Cambodia & price increased.
• Gross margin dropped mainly from Movie contents business & high costs from Blockbuster movies.
• Net profit improved from
• Efficiency expenses management.
• Profit from divestment in PVRL.
• High profit from portfolio.
Amt. %
Revenue 2,153 100% 2,189 100% 37 2%
Gross margin 803 37% 739 34% (63) -8%
EBITDA 620 29% 696 32% 75 12%
EBIT 412 19% 465 21% 53 13%
Net Profit 293 14% 343 16% 50 17%
Bt.Million 3Q14 3Q15growth
Amt. %
Revenue 6,499 100% 6,605 100% 105 2%
Gross margin 2,418 37% 2,356 36% (61) -3%
EBITDA 1,827 28% 2,069 31% 242 13%
EBIT 1,222 19% 1,412 21% 191 16%
Net Profit 879 14% 1,032 16% 153 17%
Bt.Million 9M14 9M15growth
Net profit & Margin3Q15 QUARTERLY BRIEFING
Margins 3Q14 3Q15 variance
Admissions 18% 12% (6%)
Concessions 71% 65% (6%)
Advertising services 86% 85% (1%)
Bowling group 37% 36% (1%)
Rentals & services 19% 20% 1%
Movie Contents 9% 12% 4%Consol 37% 34% (4%)
3Q14 3Q15
Net Profit
+17% (50mb.)
Bt.
mill
ion
Revenue
+2% (37mb.)
3Q14 3Q15
-9%(21mb.)Net profit Excl. gain from divestment.
Gross margin dropped from; Cinema : from 12 branches expansion.
Concession : from clearance sale (old bucket set).
Advertising : from more movies events.
Bowling : from performance dropped.
3Q14 3Q15
3Q14 3Q15
3Q14 3Q15
293
343
230209
3Q15 QUARTERLY BRIEFING
12
7
11
63Q14 3Q15
1,0
77
1,0
82
3Q14 3Q15
3Q14 3Q15
12
7
12
9
3Q14 3Q15
15
6
17
1
3Q14 3Q15
31
7
33
2
3Q14 3Q15
3Q14 3Q15
Revenue
+2% (37mb.)
Admissions
+0.4%(5mb.)
Concession
+5%(16mb.)
Advertising
+3%(11mb.)
Bowling
group
-9%(-12mb.)
Retails
+2%(3mb.)
Movie
Content
+10%(15mb.)
• Revenue growth in every businesses except Bowling business.
•Bowling revenue dropped from closed down 3 locations (34 bowling lanes, 45 karaoke rooms) and declined performance.
Bt.
mill
ion
3Q14 3Q15
3Q15 Revenue Breakdown
3Q15 QUARTERLY BRIEFING9M15 Revenue Breakdown
35
2
33
09M14 9M15
3,3
33
3,4
75
9M14 9M15
1,0
07
1,0
31
9M14 9M15
853
95
6
9M14 9M15
38
4
39
5
9M14 9M15
571
41
7
9M14 9M15
6,4
99
6,6
05
9M14 9M15
Revenue
+2% (105mb.)Admissions
+4%(142mb.) Concession
+2%(24mb.)
Advertising
+12%(104mb.)
Bowling
group
-6%(-21mb.)
Retails
+3%(11mb.)
Movie
Content
-27%(154mb.)
•9M15 core businesses (Admission rev., Concession rev., Advertising rev.) performance still positive.
Bt.
mill
ion
9M14 9M15
Revenue : Admissions Sale3Q15 QUARTERLY BRIEFING
-
Q Q Q Q Q Q Q
Guest Count(million) ATP
Q Q
No.of Screen
Q Q
1,07
7
1,08
2
3Q14 3Q15
Bt.
mill
ion
3Q15+67 new screens(12 branches)
No. of Screens
Guest Count & ATP
Excl
.Co
mp
lem
enta
ry
ATP increased from raise the ticket price and manage price tiers and promotionin each locations.
Admissions sale
+0.4%(5mb.)
+67 screens
+11%(16bt.)
-11%(0.8m)
3Q14 3Q15
Revenue : Admissions Sale3Q15 QUARTERLY BRIEFING
197
838
172
845
-
100
200
300
400
500
600
700
800
900
Thai Movie Foreign Movies
3Q14 3Q15
Bt.
mill
ion
1,07
7
1,08
2
3Q14 3Q15
Admissions sale
+0.4% (5mb.)
3Q14 3Q15
3Q15: Thai movies under perform.
Admission sale by segment
(Bt.million)
“3Q14” “3Q15”
Revenue : Concession3Q15 QUARTERLY BRIEFING
238
452
317 315262
436
332
65%70% 71% 69% 71% 70%
65%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Concession Sales %Concession margins
317
33
2
3Q14 3Q15
Bt.
mill
ion
812914
1,1751,310
64% 64% 69% 70%
2011 2012 2013 2014
Chart Title
Concession Sales %Concession margins
• Concession sales growth from popular bucket sets
• Margin dropped from clearance sale (old bucket set)
Concession sale
+5%(16mb.)
3Q14 3Q15
Revenue : Advertising3Q15 QUARTERLY BRIEFING
0
50
100
150
200
250
300
350
400
450
500
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Advertising revenue Margin
3Q14 3Q15
• Revenue growth from movie highlight, expansion screens
and sponsor of film production (โจหัวแตงโม)
• Gross margin dropped from more movies events.
Bt.
mill
ion
Advertising sale
+3%(11mb.)
3Q14 3Q15
Revenue : Bowling Group3Q15 QUARTERLY BRIEFING
111 113 127 129104 110 116
35% 35%37% 36%
28%31%
36%
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
350
400
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Bowling group revenues margins
12
7
11
6
3Q14 3Q15
Bt.
mill
ion
• Revenue dropped from 3 locations closed down and Activity “Bowling world tour” postponed.
• Gross margin improved from 2Q15 by efficiency cost management.
Bowling group sale
-9%(-12mb.)
3Q14 3Q15
Revenue : Retails3Q15 QUARTERLY BRIEFING
128 129 127 136 132 133 129
-
-
-
-
-
0
50
100
150
200
250
300
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Rental&services Rev. margins
12
7
12
9
3Q14 3Q15
• Revenue increased at Center point - Ratchayothin and Mini mall at Aomyai and raised the price at Metropolis.
• Occupancy increased from 90.5% to 91.4%
• Gross margin maintained.
Bt.
mill
ion
Retails sale
+2%(3mb.)
3Q14 3Q15
Revenue : Movie Contents3Q15 QUARTERLY BRIEFING
15
6
17
1
3Q14 3Q15
Bt.
mill
ion
Revenue growth from increasing sale agent for home entertainment.
Movie content sale
+10%(15mb.)
3Q14 3Q15
Sales of VCD and
DVD
Film rights
distribution
Film Production Others
Q Q
+48%(43mb.)
-25%(-10mb.)
-69%(-13mb.)
-86%(-5mb.)
B/S Snapshot3Q15 QUARTERLY BRIEFING
0.42 0.40
0.700.62
0.70
0.560.65
-0.50
-0.30
-0.10
0.10
0.30
0.50
0.70
0.90
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2011 2012 2013 2014 1Q15 2Q15 3Q15
Net interest-bearing debts Equity Net D/E
6,387 6,533
7,546 7,69213,932 14,224
Dec 31,14 Dec 31,14 Sep 30,15 Sep 30,15
Dec 31,14 Sep 30,15
AS
SET
S
AS
SET
S
EQU
ITY
EQU
ITY
LIA
BIL
ITIE
S
LIA
BIL
ITIE
S
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
Loan increased from expansion branch.Bt.million Dec 31,14 Sep 30,15 %chg
Assets 13,932 14,224 2.1%
Liabilities 7,546 7,692 1.9%
Equity 6,387 6,533 2.3%
vs. Interest-bearing debtsInvestments Portfolio3Q15 QUARTERLY BRIEFING
Bt.million
Investments %Share (as
of 3 Nov'15)
Cost per
Share
Market
value*Major's Cost Gain(Loss)
Siam Future 23.29% 2.60 2,482 1,074 1,408
MJLF 33.00% 10.00 1,492 1,089 403
MPIC 92.46% 1.67 1,827 2,003 (176)
PVRL 3.95% 120.45 783 221 562
Total 6,585 4,387 2,198
*% Share & Closing price on 3 Nov'15
The image part with relationship ID rId2 was not found in the file.The image part with relationship ID rId4 was not found in the file.
Bt.million
Interest-bearing debts Sep 30,15
Bank OD & ST loans 2,442
CP of LT borrowings 910
LT borrowings 309
Debentures 1,000
Total 4,662
The image part with relationship ID rId2 was not found in the file.The image part with relationship ID rId4 was not found in the file.
6,387 6,533
7,546 7,69213,932 14,224
Dec 31,14 Dec 31,14 Sep 30,15 Sep 30,15
• Investment portfolio as of 3 Nov,2015:• 92.46% in M Pictures Entertainment Plc. (MPIC)• 23.29% in Siam Future Development Plc. (SF) • 33.00% in Major Cineplex Lifestyle
Leasehold Property Fund (MJLF)• 40.00% in ThaiTicketMajor Co., Ltd.• 3.95% in PVR Limited (PVRL)• 49.00% in PVR blu-O Entertainment Limited• 70.00% in Major Platinum Cineplex
Co.,ltd.(Cambodia)
Sep 30,15
AS
SET
S
EQU
ITY
LIA
BIL
ITIE
S
LIFESTYLEentertainment
GROWTH POTENTIALS
GROWTH POTENTIALS
*Please note that release dates are subject to change.
LIFESTYLEentertainment
Blockbuster Highlight Released In 2016 Mega Blockbuster in Year 2016 are still attractive.
Superhero-related, sequels or animated films are continuous released.
Year 2016
Batman VS Superman: Dawn of Justice
Suicide Squad
Captain America 3
X-Men Apocalypse
Amazing Spider-Man 3
Deadpool
Resident Evil: The Final Chapter
The Divergent Series: Allegiant Part 1
Independence Day 2 Resurgence
Teenage Mutant Ninja Turtles 2
London Has Fallen
Kung Fu Panda 3
Ice Age 5
Frozen 2
Finding Dory
Knights of the Round Table King Arthur
GROWTH POTENTIALS
*Please note that release dates are subject to change.
LIFESTYLEentertainment
1Q16 Blockbuster Highlight1Q16
Deadpool (Fox)
Batman V Superman : Dawn of Justice (WB)
Kung Fu Panda 3 (Fox)
Zoolander 2 (UIP)
Pride and Prejudice and Zombie (Mongkol)
The New Adventures of Aladin (MPIC)
London Has Fallen (MPIC)
Victor Frankenstein (Fox)
13 Hours: The Secret Soldiers of Benghazi (UIP)
Joy (Fox)
The Revenant (Fox)
Steve Jobs (UIP)
The Finest Hours (Disney)
YouTube Channel: Major Trailers 70,000 Subscriber
Facebook: www.facebook.com/MajorGroup 2,326,000 Fan page
Twitter: MajorGroup 1,100,000 Followers
Instagram: MajorFriends 201,000 Followers
Mobile Application 5,050,000 Download
GROWTH POTENTIALS
18
Major is expert in online entertainment and interesting in online media.
LIFESTYLEentertainment
ID line: MajorFriends 15,107,000 Friends
GROWTH POTENTIALS
19
•Customers can book the ticket through many channels like E-Ticketing Machines, Mobile Application (iOS, Android), Major Cineplex’s website, also customers can pick up the tickets by using barcode at kiosks or receive the tickets at 7-11 (Convenience store)
•87% of admission revenue comes from non box office (Data as of 3Q15)
•Those technology will come to replace manpower in box office areas.
LIFESTYLEentertainment
Online Booking: E-Ticketing, Mobile Application and Online ticketing
E-Ticketing Machine496 Units
MAJOR CINEPLEX GROUP LIFESTYLEentertainment
Expansion Plan: 85 new screens additional (Total 600 Screens)
2Q12 2Q13
(Data as of November 2015)
No. Location Screens Opening Date1 Emquartier (Opened 1Apr) 82 Lotus Nakornsrithammarat (Opend 10Apr) 43 Central Rayong (Opend 27May) 84 Big C Nan (Opend 29May) 25 Big C Udonthani (Opened 9July) 46 Sahathai Suratthani (Opened 16July) 77 Vientiane Center, Laos (Opened 7August) 58 Lotus Suratthani (Opened 20August) 69 Central West Gate (Opened 28August) 12
10 Central Samui (Opened 9October) 311 Lotus Khon Kaen (Opened 15October) 512 Promanade (Opened 23October) 8
13Central East Ville (Ekamai - Ramindra)
(Open 27November)8
14 Diana (Hat Yai) (Open 25 December) 5
2Q15(22 Screens)
3Q15(34 Screens)
4Q15(29 Screens)
1 Big C Ratburanah 42 Big C Ratchaburi 43 Lotus Yasothon 34 Big C Lampang 55 Lotus Nadee (Udon) 5
Remark* Screen postponed to 1Q16
LIFESTYLEentertainment
INTERNATIONAL PROJECT
International ProjectIndia: PVR Cinemas
LIFESTYLEentertainment
Currently, PVR cinemas has got 477 Screens in 107 Locations.
Major hold 3.95% of PVR Cinemas (PVRL)
PVR Cinemas is now India's Largest Multiplex Chain.
International ProjectIndia: PVR BluO
LIFESTYLEentertainment
Currently, PVR BluO has got 125 Bowling lanes in 7 Locations.
International ProjectCambodia
LIFESTYLEentertainment
Cambodia: Major is partnering Japan's Aeon
Mall to operate a cinema complex in Cambodia's capital with 7 screens comprising five standard cinemas, one VIP cinema and one 4D cinema (1,560 seats) and 14 bowling lanes .
The investment of 150 million baht will be made through a holding company of Major's international joint venture with a local firm. Major hold 70% of JV.
This project opened since 30th June 2014
The first year since Major Cineplex Cambodia opened, become the biggest cinema chain with 70% market share and 850,000 admissions has been sold.
International ProjectLaos
LIFESTYLEentertainment
Laos: Major will open a cinema complex called
“Major Platinum Cineplex By Huawei”in Vientiane center with 5 screens (1,150 seats).
The investment of 50 million baht will be made through a holding company of Major's international joint venture with Platinum Cineplex Ltd. (Local). Major hold 60% of JV.
This project opened since 7th Aug 2015.
Also the second project in Laos partnering THE LAOS World Trade Centre (WTC) and Major Cineplex Group have signed a cooperation agreement to open a new cinema complex in Vientiane in the signing ceremony in Bangkok on July 24.
LIFESTYLEentertainment
Thank You
LIFESTYLEentertainment