PT Media Nusantara Citra

Corporate Update

May 2020

Listed and traded on the Indonesia Stock ExchangeSTOCK CODE: MNCN

5. Four National FTA with the largest audience share of 40% and adspend share of 45%.• 40% audience shares translate to more than 100 million viewers daily, the largest in

the country even if it’s compared to any social media platform.• Launched its streaming (OTT) service called RCTI+.

7. The Largest Library with more than 300K hours, consisting of more than 60% non news.

6. The Largest Content Production of 23K hours yearly in long, mid and short formats:• 40% market share in drama or close to 5,000 hours of drama production yearly.• 80%+ market share in talent search & animation.

8. The Largest Talent Management with close to 400 talents under management with 5 + 5 years option to extend.

9. Started MCN (Multi Channel Network) on YouTube in August 2019 and

generating 1.63billion views and 11million subscribers in just a month. Including MNCN Channels on Youtube, the total number of views reached 24.1billion in a 12 month span (FY-2019), with 73.7 million subs by the end of March 2020.

10. Owning the largest sites called Okezone (#1 above Google #2) and

Sindonews (#7) based on Alexa measurement.• Okezone has more than 20 million UV daily• Okezone is ranked #22 globally.

11. Strong growth in digital advertising revenue• Derived from mobile apps, general/news portal, YouTube revenue share• Excluding future digital revenue from RCTI+ and MCN.

12. Strong growth in Non Time Consuming Ads (NTC Ads) in the

form of built in, virtual and squeeze frame as well as equity link.

13. FY-2019 financial performance: • YoY revenue to $600mn, up 12%• YoY EBITDA to $267mn, up 17%• YoY profit to $169mn, up 47%

1. GDP hit more than $1trillion for the first time in 2018 with annual growth rate between 5-6%.

2. Large population of 267 million people, growing by 3-4 million people

every year for the next 15 years.

3. Significant upside potential for adspend growth since adspend to GDP ratio is only 0.2%, one of the lowest in Asia.

4. Adspend on National FTA and digital will grow from 80% to close to 90% of the national adspend in the next 3-4 years.

MNCN Key Investment Highlights

2

14. Fast growing digital and content revenue:• In FY-2019, growing by 37%

YOY, contributing more than 25% of the total revenue.

• Projected to contribute more than 40% in 2022 and more than 50% in 2024.

At 15x P/E multiple, stock price is equivalent to Rp2,500.

3

Macro Drivers Support Industry Growth

54,9

55,1

5,3

5,5 5,5 5,5 5,5

2014 2015 2016 2017 2018 2019 2020 2021 2022

• A large & young population, 226mn people below age of 54; growing by 3 to 4 Million people every year for the next 15 years.

• A rising middle class group will grow the advertising expenditure in line with GDP growth

• A stronger growth will be driven by more robust private investment activities and acceleration of infrastructure development

What are the macro drivers?

Source : Indonesian bureau of statistic 2019 report

27%

17%

43%

8% 6%

0 - 14 15 - 24 25 - 54 55 - 64 65+

A Young Population (2018)

265

10795

69 32 6

1.148.253

323.680 186.326

437.515 383.304 319.915

0

50

100

150

200

250

300

Indonesia Philippines Vietnam Thailand Malaysia Singapore

Population US$ Real GDP

* In Millions

Population & Real GDP (US$) (2018) *

Indonesia Growth of Real GDP (%)

4

The Largest Fully Integrated Media Company in Southeast Asia

DIGITALCONTENT & IPFREE-TO-AIR TV

CONTENT LIBRARY

Content library contains more than 300,000 hoursand increasing by more

than 23,000 hours per year

PRODUCTION (Short – Mid – Long Form)

64%

1. Video Streaming

2. News Aggregator*

3. Audio Aggregator*

4. User Generated Content (UGC)*

5. Games Aggregator*

ENTERTAINMENT

Entertainment FTA focusing on family audience

Largest news TV and provide news programs to the Group’s 3 entertainment

FTA

PUBLIC

36%

INFORMATION & SPORTS

TALENT MANAGEMENT

The biggest talent management company

supported with music label and publishing unit

5 in 1 Entertainment App

Social Media and Others

Library and Original Content

MCN

News Portals

*available as stand-alone service

Indonesia Advertising Market Share

• Given the infrastructure constraint, TV is the only medium to reach a mass audience.

• TV advertising is expected to maintain a dominant market share

• A more stable economic growth will boost ad spend, TV advertising should trend at a 5% CAGR between 2017-22

• 94% smartphone penetration among online users, grew from 40% in 2013.

2018

2022

TV, 64%Internet, 16%

OOH2%

Print, 16%Radio, 2%

TV, 62%

Internet, 25%

OOH2%

Print; 10% Radio

1%

-

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

35.000.000

40.000.000

2015 2016 2017 2018 2019 2020 2021 2022

TV Internet Print & Related Other

Indonesia Advertising – By Media (in Rp Mill)

Source : MPA 2018 report, adjusted

5

The Largest Audience Share & FTA TV Advertising Market Share

• MNCN continued to produce top dramaseries and successfully fulfilled demandon high quality Indonesian culture-basedentertainment

Source : Nielsen Prime Time FY-2019

37 39 40 43 43 45

26 28 2824 26 24

1814 12 12 10 10

14 1415 17 15 13

4 4 4 4 4 40 0 1 1 1 0

2014 2015 2016 2017 2018 2019

MNC Group Emtek Group Trans Corp

Viva Group Metro TVRI

• MNC Group dominates Advertisingmarket share amongst all FTA TVStations in the nation

• Content is the only way to captureaudience share and monetize advertisingdollars

• MNC sells different forms of advertisingfrom filler TVC, NTC (built-in, virtual ads),and major special program (talentsearch, etc)

Indonesia FTA TV Advertising Market Share

36,9 38,4 37,940,1

29,8

36,0

45,6

38,334,4

37,2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6

MNCN Audience Share 2008 – 2019*

TV Advertising Revenue

7

Built-In AdvertisingConventional TVC

Virtual Advertising Squeezed Frame Advertising

• Conventional TVC (15” and 30”) during

commercial break

• Creative ads/ Non Time Consuming ads

(Built-in, Virtual Ads, Squeeze Frame,

etc)

• Equity Link (Air time and Content

Library)

• Localized RTX* & Geo-tagging TVC*

• QRIS Advertising*

• Digital Ads : Digital Broadcast, Social

Media (including Library, original

content, and MCN), News Portal, and

RCTI+.

*will be launched soon

Super Impose RTX

8

Consumer Will Be Able To Shop Directly From TV

Up front payment to secure transaction

Consumer will be able to scan QR code directly from TV to buy products using e-Money Apps

Easy Steps For Maximum User Experience

9

After payment, user is automatically redirected to our landing page

1Voucher codeconfirmation

3Fill out simple shipping information

2Transaction complete!

4

You HaveCompleted Your Transaction

Note:

• Auto-fill data for repeat consumer• Full control on landing page and user journey end to end

Now TV Can Be a Shopping Marketplace

10

With standardized QRIS, consumer can buy the products from various payment Apps.

1. Discount or Cashback for SPIN users

2. Seamless in Apps experience

3. Control the traffic end to end

4. Enriched data base and analytics for MNC Group

Note:

• Business model for FTA/OTT: receive ads revenue and revenue share from transaction• As an acquirer, SPIN receives 0.7% Merchant Discount Rate (MDR) for every transaction• Even when using other payment App, we still receive 39% (of MDR)

Animation

Talent Search*

Drama Series* 41%

11

*Generating highest revenue per one hour broadcast

CONTENT LIBRARY LICENSING(FTA, DTH Pay TV, IPTV, Mobile/Streaming, OTT)

• Produces around 23,000 hours of content annually.• Owns more than 300,000 hours of content library with

breakdown of 60% non News and 40% News content.

LOCAL CONTENT

IN-HOUSE PRODUCE

80%

95%

CONTENT PRODUCTION(group & non-group)

Short, Mid, and Long Form

• Content produced in-house include Drama, Talent Search, Animation, Sitcom, Movie, Reality, Infotainment, Variety, Talk Show, News.

more than 80%

Content Revenue

more than 80%

12

The Largest Content Producer and Library Owner

ContentVARIETYTALENT SEARCHDRAMA ANIMATION SITCOM REALITY INFOTAINMENT TALK SHOW NEWS

The Best Talent Search Program

13

41%

Sinemart24%

Mega Kreasi13%

Verona Pictures6%

Tobali5%

Cakrawala3% Others…

MNC Pictures Sinemart Mega Kreasi Verona Pictures Tobali Cakrawala Others

Drama Series Production – Indonesia Market Share

14

Source : Actual On-Air, internal research 9M-2019

Star Media Nusantara: Talent Management

SingingCompetition

Nowella2014

Giselle2008

Citra Scholastika2010

Ajeng Astiani2015

Aldy Saputra2015

Angela July 2015

Christoper Edgar2016

Sharla Martiza2017

Kim Kimberly2017

AndmeshKamaleng

2017

Trio Wijaya2016

Indah Nevertari2014

Mahesya2015

Yogie2015

Dahlia2015

Chef / CookingContest

Deny 2015

Luvita2015

Brian 2013

Afif Winner2014

Zidan2014

Patrick2014

Navis Aditya2017

Sharon2017

ChristoperLaurensius

2016

Other TalentSearch

Achintya Nilsen2017

Natasha MannuelaH 2016

Maria Harfanti2015

Boy WIlliam2010

Libra Akila2011

Okky Julian2013

Oge Arthemus –

Season 1, 2009Master Limbad –

Season 2, 2009Bow Vernon

Season 5, 2012

Ayu Ting Ting2010

Lolita Agustine2010

Dede2014

B Force2017

Soul Sisters2017

15

• The biggest talent management company in Indonesia with more than 380 talents with variousbackground under exclusive contract (5 years + 5 years).

• The Company manages national talent to perform in TV shows (group or non group), radios,off air events, OOH/TV commercial, live chat on RCTI+, and content creators on MCN.

• There is a revenue split between talent and the Company for all bookings, includingendorsements on their respective social media platforms.

16

Digital Broadcast

Digital quiz interactive where user can answer al the questions on TV via RCTI Mobile. The

questions will be appeared in a form of template with 110 sec. The questions consist

of product knowledge from brand and program

Second Screen Quiz Interactive Second Screen Activity

Brand activation on RCTI Mobile where users can send their comments and upload their photos which inline with brand campaign

Second Screen Live Chat

Users can access live streaming on RCTI Mobile as well as having interactive with

another user using chat feature

Banner Random

Native Ads

Pre Roll

A small picture on top of page with landing page

Bigger than banner, native ads are in the middle of the page. Brand can put their landing page on native ads

TVC with 15 sec duration. Pre roll will appear before the video content

Most watched Indonesia YouTube contentcomes from our short clips drama series

Source of Revenue from Youtube 1

17

Starting in April 2020, MNCN agreed to do the same arrangement with Facebook, as it

started to activate its content monetization features.

Number One YouTube TV Views & Subscribers in Indonesia

18

Source : MNC Research, FY-2019

MNC GROUP77.740.715

TRANS CORP34.059.807

NET 29.063.000

EMTK GROUP24.550.240

KOMPAS15.997.681

VIVA GROUP15.079.620

METRO2.488.150

RTV3.311.348

*Including Twitter, FB, IG, the total subscribers reach over 92 million, the largest in South East Asia

MNC Media vs CompetitorsVIEWS (IN BILLION)

12.2 11.510.4

6.13.4

MNCGROUP

TRANSCORP

NET EMTKGROUP

KOMPAS VIVAGROUP

24.1

MNC Media vs CompetitorsSubscribers

MNCN Nationwide Youtubemarket share:

4.73% 2.19% 2.50%

Note: Data for Youtube Indonesia

Views Subscribers Video Uploads

Source : MNC Research, As per Apr 2020

Maximize Brand’s Presence Through Engaging

Web-Series Ads

Source of Revenue from Youtube 2

19

Star Hits – Leading Digital Network

• Star Hits is a digital network that develops content creators, talent or influencers, tocooperate with the brand and to create the ecosystem that are connected in the content.

• Owns various channels under star hits family brand, which focuses on various differentgenres.

• Currently, Star Hits also coordinates all of MNC Group’s channels in all social media.• Star Hits started its MCN (Multi-Channel Network) operation in August 2019.

20

MCN (Aug 2019 – Apr 2020):• 31.2mn subscribers• 3.2bn views

MCN + Non – MCN• 77.7mn subscribers (as of Apr 2020)• 24.1bn views (FY – 2019)

Source of Revenue from Youtube 3

ALEXA RANKSTop Indonesian Sites

MNC Group “News Portal” ranked #1 and #6 in Indonesia

Note : For News portal, Okezone.com is ranked #1 (20mn daily UV) and Sindonews.com #6

1. Okezone.com

2. Google.com

3. Tribunnews.com

4. Youtube.com

5. Detik.com

6. Sindonews.com

7. Kompas.com

8. Liputan6.com

9. Bukalapak.com

10. Grid.id

11. Blogspot.com

12. Google.co.id

13. Idntimes.com

14. Kumparan.com

15. Yahoo.com

16. Suara.com

17. Kaskus.co.id

18. Kapanlagi.com

19. CNNindonesia.com

20. Alodokter.com

*Update December 2019

21

1. Video Streaming 2. News Aggregator

3. Audio Aggregator 4. Talent Search - UGC

Welcome to RCTI+ - OTT Media Services

• A spectacular extension of MNCN digital assets which is available for free via Apps (iOS & Android).

• Target in 2020 – 30 million Monthly Active User (MAU)

• LiveTV, catch up TV, and FTA programs- current and library

• Fresh extended content and FTA unairedcontent (bloopers and behind the scene)

• Creative content: Quiz, reward system,original short, mid, & long form content,voting, and chats with MNC talents

• Integration of MNCN news platforms intoRCTI+

• Top 20 articles from different categoriesderived from the three general and newsportal

• Cooperation with third parties portalaggregator

• Radio Aggregator – All radio stationsavailable digitally on the app with achoice of channels from variousgenres, years and mood selections

• Music radio playlist and podcastcontent

• UGC podcast

• Video sharing experience

• Exclusive content upload from the libraryin short and medium form and contentsimilar those uploaded on YouTube

• Talent search competition – facilitate userto unlock their potential to the worldthrough online competition

22

5. Games Aggregator

• Provides access to new and excitinggames content

• A constantly expanding content offering

23

MNC Integrated Studios Facilities

Drama Production – Response to Covid-19 “semi-lockdown”

24

Outdoor Set – “Orang Miskin Baru” Indoor Set – “Tukang Ojek Pengkolan” Indoor Set – “Dunia Terbalik”

Outdoor Set – “Memet” Indoor Set – “Jaka Tingkir”Indoor Set – “Amanah Wali 4”

Drama Production Set Up @ MNC Studios, Kebon Jeruk

MNCN Q1-2020 FINANCIAL PERFORMANCE

25

MNCN FY-2019 FINANCIAL PERFORMANCE

26

in Rp (billion) Revenue EBITDA Net Profit

MNCN FY-2019 (U) 8,353.4 3,713.4 2,352.5

Market Consensus 8,224.5 3,482.7 2,046.4

Difference (%) 1.6% 6.6% 14.9%

Income Statements Variance

In IDR mio FY-2019 FY-2018 YoY

Revenues 8.353.365 7.443.905 12%

Advertisement 8.065.137 7.242.402 11%

Digital 697.396 261.102 167%

Non-digital 7.367.741 6.981.300 6%

Content 1.740.365 1.518.392 15%

Others 113.911 199.825 -43%

(Elimination) (1.566.048) (1.516.714)

Direct Cost *) 2.835.003 2.643.184 7%

Depr & amort in Direct Cost 195.485 181.818 8%

Gross profit 5.322.877 4.618.903 15%

Gross profit margin 64% 62%

General & Administrative expense *) 1.804.950 1.623.994 11%

Depreciation and amortization 258.927 255.146 1%

EBITDA 3.713.412 3.176.727 17%

EBITDA Margin 44% 43%

Net Income 2.352.529 1.605.621 47%

Net income margin 28% 22%

Actual

MNCN Unaudited FY-2019 VS Market Consensus

Digital : • Digital Broadcast• Social Media (Library &

original content, etc)• Online portal

Non DigitalAdvertising : • Conventional TVC• Creative ads/ NTC ads• Equity Link

Content :• Content Production(in-house & third party)• Content Library

Others :• Talent Management• Print (being down sized)

27

78

183

325372

H1-2018 H2-2018 H1-2019 H2-2019

Digital Revenue (in IDR bio)

1.466 1.5191.740

FY-2017 FY-2018 FY-2019

Content Revenue* (in IDR bio)

The Emerging Content and Digital Ads Revenue

*Before elimination

• There is a strong growth in our digital andcontent revenue. Both have alreadycontributed to 29% of the total revenue.

• The Company expects that by 2022, itwill reach more than 40% of the totalrevenue.

• By 2024, it will contribute more than 50%of the total revenue.

• Moving forward, It is expected that ourearnings in digital and content willincrease significantly with the inclusion ofMCN and RCTI+, which were introducedin August 2019.

Thank You

For further information, please contact Investor Relations Division:

investor.relations@mncgroup.com

PT Media Nusantara Citra TbkMNC Tower 29th Floor

Jl Kebon Sirih No.17-19Jakarta 10340, Indonesia

Tel: 62-21 3913338Fax: 62-21 3910454

Website: www.mnc.co.id