LIFESTYLEentertainment
3Q19 Analyst MeetingParagon Cineplex, 11th November 2019
MAJOR CINEPLEX GROUP PLC.1
FINANCIAL OVERVIEW 2
IMAX
LIFESTYLEentertainment
Financial Highlights
3
3Q19 QUARTERLY BRIEFING
Bt.Million 3Q19 3Q18Growth
Amt. %
Revenue 2,457 100% 2,048 100% 410 20%
Gross Margin 778 32% 630 31% 148 23%
Operating Profit 159 6% 84 4% 75 89%
EBITDA 546 22% 557 27% (11) (2%)
EBIT 273 11% 272 13% 0.5 0.2%
Core Profit 195 8% 117 6% 78 67%
Net Profit 195 8% 206 10% (11) (5%)
Remark: Divestment from SF 3Q18 = 89MB
Revenue Breakdown
4
2015 2016
1,0
99
1,2
82
Admission
+17%(+182mb.) Concession
+19%(+74mb.) Advertising
+30%(+86mb.)
Bowling group(4%)
(5mb.)
Movie Content+197%
(+72mb.)
Total Revenue
+20%(+410mb.)
2,0
48
2,4
57
36
10
8
28
4 36
9
12
3
11
8
10
7
10
7
39
8 47
2
3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19
Retails+0.6%
(+0.6mb.)
3Q19 QUARTERLY BRIEFING
Financial Highlights
5
9M19 QUARTERLY BRIEFING
Bt.Million 9M19 9M18Growth
Amt. %
Revenue 8,030 100% 7,001 100% 1,028 15%
Gross Margin 2,734 34% 2,343 33% 391 17%
Operating Profit 895 11% 699 10% 196 28%
EBITDA 2,041 25% 2,142 31% (100) (5%)
EBIT 1,219 15% 1,302 19% (83) (6%)
Core Profit 873 11% 733 10% 140 19%
Net Profit 906 11% 1,025 15% (119) (12%)
Remark: Divestment from SF decreased 259 MB (9M19 = 32MB / 9M18 = 291MB)
Revenue Breakdown
6
3,8
90 4
,39
2
Admission Revenue
+13%(+502mb.)
Concession
+13%(+176mb.)
Advertising+21%
(+199mb.)
Bowling group(-3%)
(-8mb.)Movie Content
+143%(+155mb.)
Total Revenue
+15%(+1,028mb.)
10
8 26
3
96
6 1,1
66
32
4
31
6
31
9
32
3
1,3
94
1,5
70
9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19
Retails+2%
(+5mb.)
9M19 QUARTERLY BRIEFING7
,00
1 8,0
30
ATP & Guest Counts
Revenue : Admissions
7
53% 49% 53% 52%
47% 51% 47% 48%
2017 2018 3Q18 3Q19
Bangkok & Vicinity Upcountry
ATP Breakdown (THB)
177 184 183 201
145 142 141 149
2017 2018 3Q18 3Q19
Bangkok & Vicinity Upcountry
ATP (THB)
163 162 162
174
2017 2018 3Q18 3Q19
ATP+7%
+12THB
32.1 37.8
Total8.88
0
5
10
15
20
25
30
35
40
45
2017 2018 3Q18 3Q19
Guest Counts (Million) Comp.&MPASS
1.02.3
0.59 1.52
31
.1 35
.5
Total7.51
6.9
2
7.3
6
3Q19 QUARTERLY BRIEFING
Guest Counts Breakdown by Regional
Revenue : Admissions
8
78% 77% 84% 74% 67%94% 92%
22% 23% 15% 26% 33%6% 8%
2015 2016 2017 2018 1Q19 2Q19 3Q19
Hollywood Local
58% 55% 57% 55%
42% 45% 43% 45%
2017 2018 3Q18 3Q19
Bangkok & Vicinity Upcountry
3Q19 QUARTERLY BRIEFING
160 MB 138 MB 104 MB
3Q
19
Top
5 B
ox
Off
ice
3Q
18
Top
5 B
ox
Off
ice
Box Office Breakdown by Regional Market Share Breakdown by Movies
73 MB 70 MB
298 MB 244 MB 113 MB 80 MB 49 MB
Remark:
• 3Q19: 17% Revenue Growth.
• 5 Screens, 1 Locations additional in 3Q19.
• Company has ability to increase ticket price nationwide by using dynamic pricing according popularity of the movie.
Revenue : ConcessionConcession Revenue & Margin
1,665 1,972
398472
68% 69% 69%65%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
100
600
1,10 0
1,60 0
2,10 0
2,60 0
2017 2018 3Q18 3Q19
Concession Revenue (THB) Margin (%)
% Con to Box Ratio
32.137.8
7.51 8.88
35% 36% 37.6% 39.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0.0
10. 0
20. 0
30. 0
40. 0
50. 0
60. 0
70. 0
80. 0
2017 2018 3Q18 3Q19
Admission (Million) % Con to Box
3Q19 QUARTERLY BRIEFING
Remark:• 3Q19: 19% Revenue Growth • % Con to Box Ratio is 39.5%• Gross Margin declined due volume of bucket set items and marketing campaign.
Top 5 Best Seller 3Q19
Revenue : Advertising
10
1,394 1,340 284 369
85% 84% 82% 81%
0% -
200
400
600
800
1,000
1,200
1,400
1,600
2017 2018 3Q18 3Q19
Advertising Revenue (Million) Margin (%)
Advertising Revenue
3Q19 QUARTERLY BRIEFING
Remark:
• 3Q19: 30% Revenue Growth from the contract renewal, new strategy of selling media through agency model and new clients.
• Media team is able to increase proportion of media in upcountry location.
• Gross Margin declined due rebate basis is higher.
• Revenue growth from Movie: Angel has Fallen, Weatheringwith you, Khun Pan Fah Fuen movie and Free TV License
123 118
37% 39%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
-
20
40
60
80
100
120
140
160
180
200
3Q18 3Q19
Bowling Group Revenue (Million) Margin (%)
Revenue : Bowling Group : Rental Service : Movie Content
11
Bowling Group Revenue
3Q19 QUARTERLY BRIEFING
107 107
8% 8%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
-
20
40
60
80
100
120
140
160
180
200
3Q18 3Q19
Rental&Service Revenue (Million) Margin (%)
Rental & Service Revenue
36
108
-
10
20
30
40
50
60
70
80
90
100
3Q18 3Q19
• Revenue decreased 4% from 2 branches closure(Udonthani, Hatyai).
•Revenue increased 0.6MB from new rental shops.
+197%
Movie ContentsUnit: THB mn
ASS
ETS
EQU
ITY
LIA
BIL
ITIE
S
14,074 7,442
6,632
6,255 6,510 6,710 6,587 6,199
4,184 3,330 3,008 3,008 3,599
0.67
0.510.45 0.46
0.58
0.0 0
0.1 0
0.2 0
0.3 0
0.4 0
0.5 0
0.6 0
0.7 0
0.8 0
-
2,00 0
4,00 0
6,00 0
8,00 0
10,0 00
12,0 00
14,0 00
16,0 00
18,0 00
20,0 00
3Q18 4Q18 1Q19 2Q19 3Q19
Equity Net interest-bearing debts Net D/E
12
Balance Sheet Snapshot
31Dec18
Bt.million 31Dec18 30Sep19 %chg
Assets 14,074 13,547 (4%)
Liabilities 7,442 7,202 (3%)
Equity 6,632 6,346 (4%)
30Sep19
3Q19 QUARTERLY BRIEFING
ASS
ETS
EQU
ITY
LIA
BIL
ITIE
S
13,547 7,202
6,346
Strategic investment and hidden profit
13AS
SET
S
EQU
ITY
Investment portfolio as of 30 September 2019:• 27.30% in Siam Future Development Plc. (SF)• 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF)• 92.46% in M Pictures Entertainment Plc. (MPIC)• 40.00% in Thai Ticket Major Co., Ltd.• 69.97% in Major Platinum Cineplex Co., ltd. (Cambodia)• 59.98% in Major Platinum Cineplex Co., ltd. (Lao)• 99.99% in Cineplex (Lao) Sole Co., ltd.• 49.00% in CJ Major Entertainment
Closing price as on 30Sep2019 Bt.million
Investments %ShareCost per
ShareMajor’s
CostMarket Value
Unrealized Gain (Loss)
Siam Future 27.30% 4.15 2,414 3,405 991
MJLF 33.00% 10.00 1,089 1,305 261
MPIC 92.46% 1.63 1,959 1,887 (72)
Total 5,463 6,643 1,180
3Q19 QUARTERLY BRIEFING
LIFESTYLEentertainment
GROWTH POTENTIALS 14
15
BUSINESS REVIEW: MOVIE LINE UP 4Q19 HOLLYWOOD & THAI
HOLLYWOOD
Maleficent : Mistress of Evil
Frozen2
Star Wars : The Rise of Skywalker
Jumanji : The Next Level
Terminator : Dark Fate
Charlie’s Angels
Joker
The Angry Birds Movie 2
Doraemon : Nobita’sChronicle of the Moon Exploration
Zombieland 2
Gemini Man
The Beast
21 Bridges
Superintelligence
The Addams Family
THAI MOVIES
Dairy Tootsie
Happy Old Year
Kun Pan Fah Fuen (M)
BikeMan 2 (M)
Joom Kamung 2020
Dew (M)
Heartbeat (M)
Body Guard
The Cave
The Exchange
Rak Ma Moon Ma Yam
Blood Valentine
Total 15 Thai Movies
*Please note that release dates are subject to change. 16
BUSINESS REVIEW: MOVIE LINE UP 1H20 HOLLYWOOD & THAI
BLOCKBUSTER
Fast & Furious 9
Top Gun 2 : Maverick
James Bond 25
Godzilla vs. Kong
Dolittle
Artemis Fowl
Black Widow
Untitled Disney Live Action
Mulan
Cyborg
Wonder Woman 1984
The New Mutants
Gretel and Hansel
The King’s Man
Underwater
Bad Boys for life
A Quiet Place Part 2
ANIMATION
Peter Rabbit 2
The SpongeBob Movie
Scoob!
Sonic The Hedgehog
Trolls World Tour
Barbie
THAI MOVIES
Classic Again (M)
My God Father (M)
Killer Tattoo
Pee Nak 2
Justice Night (M)
Poo Bao 4
The Adventure (M)
7 Boy Scouts
Estimate 20 Thai Movies in 1H20 *(Data as of Nov19)
*Please note that release dates are subject to change.
BUSINESS REVIEW: MOVIE LINE UP 2H20 HOLLYWOOD
HOLLYWOOD
Masters of the Universe
The Eternals
Venom 2
Untitled WB Event film 2
The Flash
G.I. Joe : Snake Eyes
Infinite
Jungle Cruise
Green Lantern Corps
Morbius
The Conjuring 3
The Empty Man
Cruella
Monster Hunter
Dune
Ghostbusters
Purge 5
Escape Room 2
ANIMATION
Minions : The Rise of Gru
Scooby-Doo
The Croods 2
The Grudge
Trolls 2: World Tour
The Mitchelles vs The Machines
Clifford the Big Red Dog
Rumble
Soul
Raya and the Last Dragon
THAI MOVIES
Estimate 30-35 Thai Movies in 2H20 *(Data as of Nov19)
17
18
116 123 207 217 240 245 255 268 267 269 294 294 304 336 343 338 349 35229 39 50 71 89 86 94 114 119 185 209
280 319 347 400 421
123 142236 256 290 316 344 354 361 383 413
479 520628
678 710782 812
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
BKK & Vicinity Province International
2Q12 2Q13
VIETNAM
LAOS
CAMBODIA
MYANMAR
BUSINESS REVIEW: EXPANSION PLAN
Cambodia•26 Screens •5 Locations
Phnom Penh, Siem Reap
Laos•13 Screens
• 3 Locations
Pakse, Vientiane
Thailand•773 Screens
•162 Locations
Nationwide
MAJOR has coverage in 61 provinces throughout Thailand and will operate 812 screens, 170 locations nationwide and international in year 2019 (32 screens, 11 locations additional)
No. Location Screens Location No.BKK&
Vicinity UPC Inter Opening Date
1 ITECC Mall,Laos 4 160 P
1Q19(9 Screens)
2 Lotus Baansuan, Chonburi 2 161 P
3Lotus Jomthong, Chiangmai
1 162 P
4 Lotus Angthong 2 163 P
5Lotus Det-Udom UbonRatchathani
2 164 P2Q19
(2 Screens)
6 Lotus Praram2 3 165 P3Q19
(3 Screens)
7 Big C Poipet, Cambodia 2 166 P
4Q19(18 Screens)
8 Big C Pakchong 3 167 P
9 Robinson Ladkrabang 5 168 P
10 Kad Suan Kaew, ChiangMai 6 169 P
11 Lotus Saraburi 2 170 P
Major leverage by using social media and loyalty program to create frequency movie as well as nurture movie culture.
19
ID line: MajorFriends
15.8M Friends
Twitter: MajorGroup
2.6M Followers Youtube: MajorGroup
715K Subscribers
www.majorcineplex.com
5M Visitors / MonthM Generation
4.9M Members
FB: MajorGroup
5.4M FANPAGE
Mobile Application
11M Download
MPASS120K Members
(Started from Jan’18)
Email Subscribers1.5M Members
IG: MajorFriends
465K Followers
SOCIAL MEDIA PLATFORM
20
LIFESTYLE
Thank you
Disclaimer
The information in this presentation has been prepared by Major Cineplex Public Company Limited (MAJOR) and is general background information about MAJOR’s activities current as at date of this presentation. This presentation is not intended to provide the basis of any investment decision, nor to substitute your own analysis and investigation and should not be considered as a recommendation to any recipient of this presentation. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities or instrument transactions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or should be relied on as a promise or representation of MAJOR as to the future.
Thank youFor further inquirywww. http://investor.majorcineplex.com/enContact person: Suparee JayapoomEmail : [email protected]
LIFESTYLEentertainment