2 bec world plc. presentation for investors set opportunity day 8 june 2006 industry overview...
TRANSCRIPT
2
BEC World Plc.BEC World Plc.
Presentation for Investors
SET OPPORTUNITY DAY
8 June 2006
Industry Overview
Financial Highlights
3
Advertising Expenditure Trends:Advertising Expenditure Trends:
95 98 99 00 01 04
TV 44% 60% 63% 60% 62% 56%
RADIO 12% 9% 10% 10% 10% 8%
NEWSPAPER 28% 19% 20% 21% 18% 21%
MAGAZINE 8% 5% 5% 5% 6% 7%
CINEMA - 1% 1% 1% 1% 2%
OUTDOOR 8% 5% 3% 2% 3% 5%
TRANSIT - 1% - 1% 1% 1%
Source: CIA Media Innovation & NMR
4
Advertising Expenditure Trends:Advertising Expenditure Trends:
Source: Nielsen Media Research
5
TV Advertising Expenditure:TV Advertising Expenditure:
0
10,000
20,000
30,000
40,000
50,000
60,000
1992 '9
3'9
4'9
5'9
6'9
7'9
8'9
920
00 '01
'02
'03
'04
'05
Bt m
High Growth Rate – Recovers Fast
Source: Nielsen Media Research
6
TV Advertising Expenditure:TV Advertising Expenditure:ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM
YTD JANUARY-APRIL 06 VS 05
BAHT MILLIONS
MEDIA YTD 06 SOV% YTD 05 SOV% DIFF % Change
TV 17,052 60.16 16,083 59.11 969 6.02
RADIO 2,033 7.17 1,885 6.93 148 7.85
NEWSPAPERS 5,150 18.17 5,233 19.23 -(83) -(1.59)
MAGAZINES 1,852 6.53 1,835 6.74 17 0.93
CINEMA 358 1.26 381 1.40 -(23) -(6.04)
OUTDOOR 1,557 5.49 1,492 5.48 65 4.36
TRANSIT 289 1.02 261 0.96 28 10.73
IN STORE 55 0.19 40 0.15 15 37.50
TOTAL 28,345 100.0 27,209 100.0 1,136 4.18
Source: Nielsen Media Research
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STATION SHARE OF AUDIENCE 2005 - 2006WHOLE KINGDOM : ALL AGED 4+
06.00 - 24.00
12 12
11 11
12 12
13
12
13
12 12
13
12
CH 3
CH 5
CH 7
CH 9
CH 11
ITV
TOTAL TVR %
CH 3 20.8 22.3 22.8 23.1 23.9 24 28 32.2 26.5 28 28.1 24.7 23.9
CH 5 8.7 8.8 8.5 8.6 8.2 8 8 7.6 7.4 7 6.6 6.8 7.3
CH 7 46.6 45.2 43.7 43.2 43 43 40.5 36.1 43.4 40.6 40.2 43 43.8
CH 9 9.8 10 10.9 11.3 11.2 11 10.3 9.8 9.2 10.4 10.4 10.8 11.2
CH 11 2.5 2.2 2.9 2.8 2.7 3 2.6 3.2 3.3 2.7 3 3 2.8
ITV 11.6 11.4 11.2 11 11 11 10.7 11.1 10 11.3 11.5 11.7 10.9
TOTAL TVR % 12 12 11 11 12 12 13 12 13 12 12 13 12
APR 2005
MAY 2005
JUN 2005
JUL 2005
AUG 2005
SEP 2005
OCT 2005
NOV 2005
DEC 2005
JAN 2006
FEB 2006
MAR 2006
APR 2006
POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000
Source: Nielsen Media Research
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0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
CHANNEL 3 CHANNEL 5 CHANNEL 7 CHANNEL 9 ITV CHANNEL 11
YTD-06 YTD-05
Advertising Spends on TV Advertising Spends on TV YTD 2006 vs YTD 2005YTD 2006 vs YTD 2005
Millions Baht
-5.7%
+18.8%
+6.4%
+4.0%
+6.4%
--4.0%
Source: Nielsen Media Research
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Top 20 Advertisers on Television 2006:Top 20 Advertisers on Television 2006: TV
ADVERTISER (BAHT 000) YTD 2006 YTD 2005 %CHG
UNILEVER (THAI) HOLDINGS 1,498,420 1,010,681 48.3%
PROCTER & GAMBLE (THAILAND) 519,322 469,899 10.5%
GMM GRAMMY PUBLIC CO.,LTD. 283,871 292,236 -2.9%
TOYOTA MOTOR THAILAND CO.,LTD. 268,206 115,131 133.0%
NESTLE(THAI) LTD. 267,146 249,244 7.2%
BEIERSDORF (THAILAND) CO.,LTD. 266,810 308,901 -13.6%
ADVANCE INFO SERVICE PCL. 259,116 427,222 -39.3%
OSOTSPA (TECK HENG YOO) 247,371 321,791 -23.1%
COLGATE-PALMOLIVE(THAILAND)LTD 243,310 107,116 127.1%
TOTAL ACCESS COMMUNICATIONS 213,699 168,878 26.5%
JOHNSON&JOHNSON(THAILAND)LTD. 204,364 161,185 26.8%
TV DIRECT CO.,LTD. 196,942 168,438 16.9%
BOONRAWD BREWERY CO.,LTD. 176,194 149,130 18.1%
L'OREAL (THAILAND) LTD. 171,870 118,304 45.3%
PTT PUBLIC CO.,LTD. 168,523 94,184 78.9%
KAO COMMERCIAL (THAILAND) CO., 165,480 209,559 -21.0%
OFFICE OF THE PRIME MINISTER 161,198 188,494 -14.5%
LION (THAILAND) CO.,LTD. 157,090 149,604 5.0%
AJINOMOTO SALES CO.,(THAILAND) 156,767 279,822 -44.0%
THE ELECTION COMMISION OF THAI 149,478 34,377 334.8%
Source: Nielsen Media Research
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Top 20 Advertisers in April 2006:Top 20 Advertisers in April 2006:
TOTALTV
ADVERTISER (BAHT 000) CHANNEL 3 CHANNEL 5 CHANNEL 7 CHANNEL 9 ITV CHANNEL 11
UNILEVER (THAI) HOLDINGS 564,160 86,710 46,752 190,608 72,038 168,051
PROCTER & GAMBLE (THAILAND) 139,087 60,519 10,447 56,294 3,394 8,433
NESTLE(THAI) LTD. 95,631 30,918 6,343 39,011 6,066 13,294
BEIERSDORF (THAILAND) CO.,LTD. 88,485 29,340 2,759 29,869 2,829 23,688
TOYOTA MOTOR THAILAND CO.,LTD. 81,891 20,198 5,714 27,797 14,721 12,661 800
BOONRAWD BREWERY CO.,LTD. 77,351 16,822 13,396 22,783 7,366 11,878 5,106
ADVANCE INFO SERVICE PCL. 73,357 12,546 3,157 29,346 3,969 21,420 2,919
KAO COMMERCIAL (THAILAND) CO., 67,220 17,269 6,864 25,316 7,427 10,344
COLGATE-PALMOLIVE(THAILAND)LTD 63,729 31,847 605 25,739 688 4,850
GMM GRAMMY PUBLIC CO.,LTD. 55,591 803 35,461 8,914 8,256 2,158
RED BULL BEVERAGE CO.,LTD. 54,553 12,251 8,342 19,804 4,322 9,505 329
OSOTSPA (TECK HENG YOO) 54,278 16,281 5,044 16,965 4,928 6,347 4,713
THE ELECTION COMMISION OF THAI 54,060 2,906 15,769 4,725 15,001 12,060 3,598
OFFICE OF THE PRIME MINISTER 54,047 107 3,254 2,737 32,535 4,971 10,443
L'OREAL (THAILAND) LTD. 52,200 12,812 1,650 18,532 6,328 12,878
LION (THAILAND) CO.,LTD. 45,292 8,876 7,262 11,895 6,271 10,987
TV DIRECT CO.,LTD. 42,892 8,139 15,682 120 5,838 13,114
TOTAL ACCESS COMMUNICATIONS 42,028 10,367 5,777 12,804 7,418 5,662
JOHNSON&JOHNSON(THAILAND)LTD. 40,070 16,455 3,768 11,746 6,789 1,312
TRI PETCH ISUZU SALES CO.,LTD. 40,069 10,976 6,434 6,276 9,229 7,154
Source: Nielsen Media Research
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Industry Reform:Industry Reform:
We shall see NBC and Broadcasting Bill shortly.
The reform is about to begin.
The reform is “blessing in disguised” for BEC as the industry will be more transparent and orderly.
Long awaited new investment opportunities in domestic market will be opened for BEC.
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First Quarter of 2006 Highlights:First Quarter of 2006 Highlights:
Baht:Million 2006 +/- YoY
Ad.Revenue 1,498 +35%
Concerts & Shows 73 -73%
Oth. Sales Revenue 69 -7%
Total Sales Revenue 1,641 +13%
Net Profit 436 +184%
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High Operating Leverage:High Operating Leverage:
As our operating costs and expenses are mostly fixed in nature, thus BEC World has high operating leverage.
Our profitability will improve greater than the growth rate of our revenue growth.
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
2.80
3.00
Revenue Profit
Revenue and Profit Growth
(1Q99 is BASE)