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Major Cineplex Group PlcMajor Cineplex Group Plc..Q i fiQ i fiQuarterly Results BriefingQuarterly Results Briefing

Aug Aug 1414, , 200920091

22QQ09 09 Quarterly Results BriefingQuarterly Results Briefing

ContentsContentsContentsContents

2Q09 Headlines recap: Key drivers2Q09 & 1H09 Financial reviewReview of Revenue EBITDA Net profitReview of Revenue, EBITDA, Net profit B/S snapshot

FY09 OutlookFilms line upFilms line‐upNew capacitiesAdvertising business review2H09 Tactics2H09 Tactics

2


22QQ09 09 Headlines RecapHeadlines Recap22QQ09 09 Headlines RecapHeadlines Recap

Political unrest in Apr‐09 during the Songkran holidaysEconomies slipping further into recession beforeEconomies slipping further into recession before signs of bottoming outFl 2009 b k i M i & idl di

ers Flu 2009 outbreak in Mexico & rapidly spreading

worldwide. Public awareness ramping up locally

rive High seasons for Hollywood films Exceptional performance of “Transformers:

y Dr Exceptional performance of Transformers:

Revenge of the Fallen” setting new record, hi i B 100 i h fi 5 d

Key

3

hitting Bt.100m in the first 5 days


22QQ09 09 ReviewReview22QQ09 09 ReviewReview

4


22QQ09 09 Financial ReviewFinancial Review22QQ09 09 Financial ReviewFinancial ReviewBt million

61,400

1,600

+3%Bt.million

Revenue growth mainly from the

38700

800

1,38

4

1,42

61,200

Bt.millionmainly from the core cinema biz (i.e. admissions sales

++88%%

684 73

500

6001,000

(i.e. admissions sales & concessions sales)

300

400

500

600

800

s

212

76 89

200

300

400

nues ++2323%% ‐‐5252%%

‐‐1313%%++1717%%

++5858%%14

3 2

142

83 1201 7

101

124

97

1 8

0

100

Admissions Concessions Advertising Bowling & Rentals & Film

200

ven

Admissions Concessions Advertising Bowling & Karaoke

Rentals & services

Film Distribution

0

2Q08 2Q09Rev

5


22QQ09 09 Financial ReviewFinancial Review22QQ09 09 Financial ReviewFinancial ReviewBt million Advertising media business still soft

61,400

1,600

+3%Bt.million Advertising media business still soft

Political crisis in Apr‐09, Songkran MayhemEconomies slipping further into recession

1,38

4

1,42

61,200

Multiple downward revisions of GDP contractions

229212 216200

2501,000

Bt.million

212 216

157150

200

600

800

s 157136

101100400

nues

ng ncom

e

50200

ven

Advertisi

services i

0

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

0

2Q08 2Q09Rev

6


22QQ09 09 Financial ReviewFinancial Review22QQ09 09 Financial ReviewFinancial ReviewBt million Core EBITDA flat in spite of the soft

600

700 Bt.million Core EBITDA flat in spite of the soft advertising bizMain contributors are still the admissions

500

600 sales & concessions sales

“ ” f

400 +0.7%400

450

500Bt.million “Gross” profits by business units

344

346

300300

350

400

BWL

RET

200

A 150

200

250 ADS

109 +26%

100

ITDA

50

100

150

ADM

CON

86

85

111 +30%

0

2Q08 2Q09EBI 0

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

ADM

7


22QQ09 09 Financial ReviewFinancial Review22QQ09 09 Financial ReviewFinancial ReviewBt million 1Q09 net profit drops because of:

600

700 Bt.million 1Q09 net profit drops because of: Less contribution from the advertising media business

500

600 media businessA bit more provision (Bt.12m), mainly for the advertising receivables

400

the advertising receivablesExtra non‐cash costs of MVDNegative equity income due to CAWOW’s

2Q08 2Q09

300

t

Negative equity income due to CAWOW s closure of one club (Sukhumvit 31)

2Q08 2Q09SFD 11.2 2.1MPIC ‐25.0 ‐2.7MJLF 19 4 21 10

200

rofit

MJLF 19.4 21.1CAWOW ‐1.1 ‐45.4PVR blu‐O 3.7Others 46 8 5 7

160

13

100

t Pr

Others 46.8 5.7Total 51.3 ‐15.50

2Q08 2Q09Net

8


22QQ09 09 Financial ReviewFinancial Review22QQ09 09 Financial ReviewFinancial ReviewBt million 1Q09 net profit drops because of:

600

700 Bt.million 1Q09 net profit drops because of: Less contribution from the advertising media business

500

600 media businessA bit more provision (Bt.12m), mainly for the advertising receivables

400

the advertising receivablesExtra non‐cash costs of MVDNegative equity income due to CAWOW’s

2Q08 2Q09

300

t

Negative equity income due to CAWOW s closure of one club (Sukhumvit 31)

2Q08 2Q09SFD 11.2 2.1MPIC ‐25.0 ‐2.7MJLF 19 4 21 10

200

rofit

Suzuki MJLF 19.4 21.1CAWOW ‐1.1 ‐45.4PVR blu‐O 3.7Others 46 8 5 7

160

13

100

t Pr Ave.

Others 46.8 5.7Total 51.3 ‐15.5

0

2Q08 2Q09Net

9


11HH09 09 ReviewReview11HH09 09 ReviewReview

10


11HH09 09 Financial ReviewFinancial Review11HH09 09 Financial ReviewFinancial ReviewBt million

3,000+0.2%

Revenue flat as the

Bt.million

11 200

1,400

2,60

0

2,60

62,500Bt.million growth for cinema

& film distribution ++44%%

1,22

6

1,27

1

1,000

1,2002,000 offset by weak

advertising media biz

600

8001,500

s

441

6 56

400

1,000

nues ++2020%%

‐‐4646%%

‐‐99%%++1818%%

++4444%%25

5

269

162 24730

6

237

244

191

3 5

0

200

Ad i i C i Ad i i B li R l Fil

500

ven %%

Admissions Concessions Advertising Bowling & Karaoke

Rentals & services

Film Distribution

0

1H08 1H09Rev

11


11HH09 09 Financial ReviewFinancial Review11HH09 09 Financial ReviewFinancial ReviewBt million

1,500

Core EBITDA down 5.4% due to:S f d i i di b i

Bt.million

1,250 Soft advertising media business6‐month cumulative provisions for

1,000 receivables about Bt.49m

42 8

750 ‐‐55..44%%

64 60500

A

250

ITDA

0

1H08 1H09EBI

12


11HH09 09 Financial ReviewFinancial Review11HH09 09 Financial ReviewFinancial ReviewBt million1,500Bt.million

1H08 net profit is exceptionally high by ~Bt.200m because of:

1,250by Bt.200m because of: Gain from share swap with MPICGain from sales of CWP leaseholds

1,000Gain from sales of CWP leaseholdsUpfront leases at Suzuki Ave.

750

t

1H09 net profit drops because of: Political havoc severely affecting the

461

500

rofit

y gmedia industry causing less revenues, i.e. contract cancellation, etc.

26

250

t Pr Provision for advertising receivables

Much less equity incomes from associates 0

1H08 1H09Net

13

due to CAWOW’s closure of one club


11HH09 09 Financial ReviewFinancial ReviewBt Million %ChgJun 30 09Dec 31 08

11HH09 09 Financial ReviewFinancial ReviewBt. Million %ChgTotal assets 9,669 100% 9,814 100% 4%Total liabilities 4,247 44% 4,843 49% 16%

l i 22 9 1 %

Jun 30, 09Dec 31, 08

Total equity 5,422 56% 4,971 51% -4%D/E ratio (TL/TE) 0.78 0.97Net D/E ratio 0.37 0.49/

ot

Bt.million 1.2012,000

Interest-bearing debts Equity Net D/E

psho 0.86

0.790.87 0.85

0.670.80

1.00

8,000

10,000

nap 0.57 0.61 0.62

0 31 0 31 0.340.37

0.430.49

0 40

0.60

4 000

6,000

S sn 0.28

0.31 0.31 0.300.24 0.26

0.34

0.20

0.40

2,000

4,000

B/S

14

0.0001Q052Q053Q054Q051Q062Q063Q064Q061Q072Q073Q074Q071Q082Q083Q084Q081Q092Q09


FYFY09 09 OutlookOutlookFYFY09 09 OutlookOutlook

15


FYFY09 09 OutlookOutlookFYFY09 09 OutlookOutlookp

e-up

line

ms

Film

16



FY08 FY09New screens 35 23

s

New screens 35 23BKK Srinakarin 5 Ratanathibate 16

Greater BKK Salaya 5 Korat 2

ties

y& Provincial Ayudhya 4 Additional screens

Petchaboon 4 Amatanakorn 5Navanakorn 4

k

acit Navanakorn 4

Thanyaburi 4Banpong 5

capa

New lanes 10 46

w c BKK Ratanathibate 22

Greater BKK Ayudhya 10& Provincial

New

International New Delhi 24

As of As of Aug Aug 20092009



Politics remain uncertainS i f i

21,221

s

Some signs of economic turnaround, but still far

20,217

ness from full recovery

FY09 will be a very

usin FY09 will be a very

challenging year for the advertising industry

a bu

advertising industry

edia

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

Me

18

Total ADEX estimates by Nielsen Media ResearchBt.million

1 2 3 41 2



Continue to focus at core biz: Admissions, Concessions Bowling Rentals & ServicesConcessions, Bowling, Rentals & ServicesRebalance admission ticket price to maximize

s

on revenue potentials at each branchContinue concessions planning with menu variety

ctic

s Continue concessions planning with menu varietyRelocate asset to improve on the utilization and

fi i bili f h b h

Tac profit generating ability of each branch

Manage receivables

09 T g

2H0

19


THANK YOUTHANK YOUTHANK YOUTHANK YOUMajor Cineplex Group PlcMajor Cineplex Group Plc..Q i fiQ i fiQuarterly Results BriefingQuarterly Results Briefing

Aug Aug 1414, , 2009200920

22QQ09 09 Quarterly Results BriefingQuarterly Results BriefingAppendixAppendix Major Cineplex Group Public Company LimitedAppendixAppendix Consolidated Statements of Income

Bt. Thousand 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

RevenuesRevenuesAdmissions 541,615 684,451 627,522 598,775 532,905 738,037Concessions sales 112,268 142,645 142,210 141,001 129,887 175,907Advertising services income 229,215 211,755 216,197 156,895 136,117 101,098Bowling and Karaoke services income 126,727 142,235 153,162 152,642 120,356 124,118Rentals and services income 78,397 83,233 84,246 92,735 93,831 97,345, , , , , ,Sales of VCD/DVD and film rights 127,450 119,946 123,329 239,804 166,959 189,407

Total revenues 1,215,671 1,384,266 1,346,667 1,381,854 1,180,055 1,425,912

CostsCost of film exhibition and theatre 501,026 599,053 566,436 535,574 503,243 626,691

L

Cost of concessions 45,239 56,194 56,609 55,453 53,754 66,897Cost of advertising services 7,863 13,296 7,456 16,494 15,053 18,452Cost of bowling and Karaoke services 89,039 93,391 97,316 105,047 84,696 88,243Cost of rentals and services 42,709 46,801 47,771 49,421 49,178 54,370Cost of sales of VCD/DVD and film rights 114,515 105,765 120,404 174,891 131,510 183,879

Total costs 800 390 914 499 895 992 936 880 837 434 1 038 533

P&

L Total costs 800,390 914,499 895,992 936,880 837,434 1,038,533

Gross profits 415,280 469,766 450,675 444,974 342,620 387,379Selling and administrative expenses 303,081 308,735 281,122 312,347 347,195 326,893

EBIT 112,199 161,031 169,553 132,627 -4,574 60,486

led

EBIT 112,199 161,031 169,553 132,627 4,574 60,486Disposal of investments 108,542 5,273 852 1,467Profit on disposals of property and equipment -24,428Other operating income 121,077 20,994 20,670 60,450 40,198 27,498Operating profit 341,818 187,298 190,223 169,501 35,624 89,452

tail Share of profit of investments - equity 91,128 51,285 7,113 -48,763 23,920 -15,474

Profit before interest and tax 432,946 238,584 197,336 120,738 59,544 73,977

Interest expense -23,245 -21,309 -26,150 -17,532 -30,052 -30,785Income tax -108,391 -58,889 -50,213 -40,584 -17,066 -29,889

Det Profit before minorities 301,310 158,386 120,973 62,622 12,425 13,303

Profit attributable to minorities, net 123 1,148 1,423 -19,630 -149 0Net profit 301,433 159,534 122,397 42,993 12,277 13,303

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