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LIFESTYLEentertainment
1Q17 Analyst MeetingParagon Cineplex, 12th May 2017 1
MAJOR CINEPLEX GROUP PLC.
MAJOR CINEPLEX GROUPAGENDA
COMING ATTRACTION MOVIE LINE-UP
FINANCIAL OVERVIEW
P.3
FINANCIAL HIGHLIGHT RESULT
EXPANSION PLAN
GROWTH PROTENTIALS
P.3
P.5
STRATEGIC INVESTMENT
P.13
P.15
P.16 - 17
P.18
QUARTERLY REVENUE BREAKDOWN P.6
2
REVENUE BREAKDOWN BY SEGMENT
P.4
BALANCE SHEET SNAPSHOT
P.14
LIFESTYLEentertainment
Financial Highlights
4
• More highlight Movie and Expansion branches built more revenue and high margin.
1Q17 QUARTERLY BRIEFING
Bt.Million 1Q16 1Q17Growth
Amt. %
Revenue 1,936 100% 2,134 100% 198 10%
Gross Margin 672 35% 716 34% 44 7%
EBITDA 556 29% 625 29% 68 12%
EBIT 308 16% 353 17% 45 14%
Net Profit 226 12% 262 12% 36 16%
LIFESTYLEentertainment
Revenue Breakdown by segment
5
1Q17 QUARTERLY BRIEFING LIFESTYLEentertainment
Data as of 1Q17
M a jo r G r o u p 's R e v e n u e B r e a k d o w n 1 Q 1 7
C in e m a B u s in e s s 7 2 %
A d m is s io n s a le s 5 5 %
C o n c e s s io n s a le s 1 7 %
A d v e r tis in g B u s in e s s 1 6 %
R e n ta l & S e r v ic e B u s in e s s 5 %
B o w lin g & K a r a o k e B u s in e s s 4 %
M o v ie C o n te n t
(C o n te n t P ro v id e r & L o c a l P ro d u c t io n )
T o ta l R e v e n u e 1 0 0 %
3 %
Revenue Breakdown
6
Core businesses growth from more locations.
(Admissions rev., Concession rev., Advertising rev.)
2015 2016
1,0
40 1,1
64
Admissions Sale
+12%(+124mb.)
Concession
+12%(+38mb.)
Advertising
+15%(+45mb.)
Bowling group
(7%)(8mb.)
Retails
(5%)(6mb.)
Movie Content
+6%(+3mb.)
Total Revenue
+10%(+198mb.)
1,9
36
2,1
34
56 59
29
5 34
0
10
2
95 1
18
11
3
32
5 36
3
1Q16 1Q17
1Q17 QUARTERLY BRIEFING
1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17
LIFESTYLEentertainment
Revenue : Admissions
7
ATP & Guest Counts Screens
Top 3 Box Office 1Q2017
336 336 340 346 346
262 277 285 316 316
610 625 641 678 678
0
100
200
300
400
500
600
700
800
1Q16 2Q16 3Q16 4Q16 1Q17
BKK & Vicinty Province International
Admission sales growth +12% YoY
• Several number of Hollywood blockbusters in 1Q17 (No. of movie in 1Q17 = 114 Movies, 1Q16 = 103 Movies)
• Focus on expand customer base by create cross promotion with partners in some locations to drive number of admission .
1Q17 QUARTERLY BRIEFING
6.4
10.0
7.0 6.4 7.4
163172
165 161 161
100
110
120
130
140
150
160
170
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1Q16 2Q16 3Q16 4Q16 1Q17
Guest Counts ATP
LIFESTYLEentertainment
113 MB 100 MB 100 MB
Revenue : Concession
8
Concession Sale % Con To Box
325483
335 300363
69% 69% 69% 67% 69%
20%
30%
40%
50%
60%
70%
80%
0
100
200
300
400
500
600
700
800
1Q16 2Q16 3Q16 4Q16 1Q17
Concession Sales Margin
6.35
9.977.01 6.36 7.35
33.0%30.8% 31.0% 31.4%
32.9%
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
32.0%
34.0%
0
2
4
6
8
10
12
14
16
18
20
1Q16 2Q16 3Q16 4Q16 1Q17
Admission % Con to Box
1Q17 QUARTERLY BRIEFING LIFESTYLEentertainment
Concession sales growth +12% YoY
• Maintain consistence gross margin.
• More admission boost concession revenue.
• More attractive concession bucket sets.
• Seasonal favor is one of our key drive.
Revenue : Advertising
9
Advertising Revenue
1Q17 QUARTERLY BRIEFING
295345 365
282340
87% 86% 86% 87% 89%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
100
200
300
400
500
600
1Q16 2Q16 3Q16 4Q16 1Q17
Advertising Margin
LIFESTYLEentertainment
Advertising sales growth +15% YoY
• More Screens can generate more advertising revenue.
• Create flexible advertising package to match with partner’s need.
• Maintain consistence high gross margin.
Movie on the beach 2017 with Chang, Moccona, Mama, True, Nivea, We Fitness, M Channel.
Interactive event in 4DX screen with Essence brand
Revenue: Bowling Group
10
Bowling Revenue
1Q17 QUARTERLY BRIEFING
102 110 114 102 95
31%35%
38%35%
38%
10%
15%
20%
25%
30%
35%
40%
45%
0
50
100
150
200
250
300
1Q16 2Q16 3Q16 4Q16 1Q17
Bowling Margin
LIFESTYLEentertainment
Bowling declined -7%, Margin +7% YoY
• Revenue declined from 4 locations closure (YOY).
• Gross Margin improved from lower cost management.
• Focus on function, corporate events, competition and create attractive event to draw customers such as concert.
Revenue: Retails
11
Retails Revenue
1Q17 QUARTERLY BRIEFING
118 123 119 117 113
16% 16% 15%17%
15%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
50
70
90
110
130
150
170
190
1Q16 2Q16 3Q16 4Q16 1Q17
Retails Margin
LIFESTYLEentertainment
Rental and Services declined -5% YoY
• Revenue declined from impacted of removal of Ratchayothin Flyover and the construction of Bangkok Mass Transit System (BTS) Green Line extension.
• The tunnel at Ratchayothin intersection will approximately open May 2017.
Revenue: Movie Contents
12
Movie Contents Revenue Movie Contents Breakdown
1Q17 QUARTERLY BRIEFING
56
8064
89
59
0
10
20
30
40
50
60
70
80
90
100
1Q16 2Q16 3Q16 4Q16 1Q17
11.2
25.517.7
1.4
29.826.6
2.8 0.10
5
10
15
20
25
30
35
40
Film Production
Film rights distribution
Sales of VCD and DVD
Others
1Q16 1Q17
ConsolidationLIFESTYLEentertainment
+6%(+3mb.)
Movie Content growth 6% YoY
• Revenue growth from Film Production from subsidiaries company – I love you two, The Moment, Mr.Hurt.
• Scale down home entertainment business.
6,797 6,938 6,716 6,718 6,976
4,182 3,913 4,643 4,708 4,409
0.620.56
0.69 0.700.63
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1Q16 2Q16 3Q16 4Q16 1Q17
Equity Net interest-bearing debts Net D/E
ASS
ETS
EQU
ITY
LIA
BIL
ITIE
S
14,576 7,600
6,976
13
B/S Snapshot
Dec 31,16 Mar 31,17
• Asset decreased from useful life of Fix Asset.
• Good performance result to good liabilities and Equity.
(1.0%) (5.1%)
+3.8%
ASS
ETS
EQU
ITY
LIA
BIL
ITIE
S
14,725 8,007
6,718
1Q17 QUARTERLY BRIEFING
Bt.million Dec 31,16 Mar 31,17 %chg
Assets 14,725 14,576 (1.0%)
Liabilities 8,007 7,600 (5.1%)
Equity 6,718 6,976 3.8%
LIFESTYLEentertainment
Strategic investment and hidden profit
14AS
SET
S
EQU
ITY
Investment portfolio as of 9th May, 2017:• 25.19% 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.• 1.50% in PVR Limited (PVRL)• 49.00% in PVR blu-O Entertainment Limited• 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
1Q17 QUARTERLY BRIEFING
Closing price as on 8 May 2017 Bt.million
Investments %ShareCost per
ShareMajor’s
CostMarket Value
Unrealized Gain (Loss)
Siam Future 25.19% 2.93 1,311 2,775 1,464
MJLF 33.00% 10.00 1,089 1,514 425
MPIC 92.46% 1.67 2,003 1,827 (176)
PVRL 1.50% 120.45 84 548 464
Total 4,488 6,664 2,176
LIFESTYLEentertainment
2Q17
Fast & Furious 8
Transformers: The Last Knight Pirates of the Caribbean 5 Guardians of the Galaxy 2 The MummyKing Arthur Wonder Woman
Alien: CovenantDespicable Me 3 Smurfs: The Lost Village
The MonsterBaywatchDoraemon Space Hero
Thai Movies Chalard Games Goeng – DramaThailand Only - ComedyZombie fighter - Horror/ComedyEstimate Total 5 Thai Movies
*Please note that release dates are subject to change.
2Q17 Coming Attraction Movies
16
MAJOR CINEPLEX GROUP LIFESTYLEentertainment
2H17
Spider-Man: Home Coming
Thor: RagnarokJustice LeagueWar for the Planet of the ApesStar War: The Last JediJumanjiCars 3Blade Runner 2049Valerian and the City
Insidious: Chapter 4Kingsman: The Golden CircleAnnabelle 2FlatlinersThe Hit's Man BodyguardGeo Storm
CocoThe Lego Ninjago
Thai Movies Estimate 20 Thai Movies in 2H17
*Please note that release dates are subject to change.
2H17 Coming Attraction Movies
17
MAJOR CINEPLEX GROUP LIFESTYLEentertainment
18
MAJOR plan to open another 70-80 screens in 2017 and currently operated 680 screens nationwide.
2Q12 2Q13
EXPANSION PLAN
76% 74% 70% 71% 61% 59% 57% 52% 49%
24% 26% 30% 29% 39% 41% 43% 48% 51%
0%
20%
40%
60%
80%
100%
120%
Y'09 Y'10 Y'11 Y'12 Y'13 Y'14 Y'15 Y'16 Y'17
BKK UPC
N o . L o c a t i o n S c r e e n s L o c a t i o n O p e n i n g D a te
1 L o tu s N a k o r n p a th o m 2 1 1 4
2 R o b i n s o n P h e tc h a b u r i 5 1 1 5
3 L o tu s S u k h o th a i 1 1 1 6
4 B i g C P a th u m th a n i 5 1 1 7
5 B i g C K o r a t 2 (N a k o r n r a tc h a s i m a ) 4 1 1 8
6 U tta r a d i t 4 1 1 9
7 W o r l d T r a d e C e n te r V i a n t i a n - L a o s 7 1 2 0
8 B i g C N a k o r n r a tc h a s i m a 3 1 2 1
9 R o b i n s o n H u a M a r k 4 1 2 2
1 0 B i g C C h o n b u r i 3 1 2 3
1 1 L o tu s P h a t th a l u n g 2 1 2 4
1 2 L o tu s P h i t s a n u l o k 2 1 2 5
1 3 L o tu s P h i c h i t 2 1 2 6
1 4 L o tu s A n g th o n g 2 1 2 7
1 5 O c e a n C h u m p h o n 5 1 2 8
1 6 S a h a th a i N a k h o n s i th a m m a r a t 2 1 2 9
1 7 S i n g b u r i 3 1 3 0
1 8 L o e i 3 1 3 1
Q 1 /1 7
(7 S c re e n s )
2 H 1 7
(4 2 S c re e n s )
Q 2 /1 7
(1 0 S c re e n s )
Screen Opening in 2017 (Tentative) – 16 Locations in upcountry, 1 locations in Bangkok, 1 location international
Data as of February 2017
MAJOR seek for long-term investmentstrategy growth, by plans to expand in bothnationwide, but the focus is more branchesin upcountry via hyper mart (Big C, TescoLotus) partners.
We expect the positive momentum tocontinue over as Major targets as of 1,000screens by 2020.
No. Location Screens LocationOpening
Date
1 Lotus Nakornpathom (Opened 6 Apr) 2 114
2Q17(12 Screens)
2 Lotus Sukhothai 1 115
3 Robinson Phetchaburi 5 116
4 Big C Korat 2 (Nakornratchasima) 4 117
5 Big C Pathumthani 5 118
2H17(50 Screens)
6 Uttaradit 4 119
7 Lotus Yasotorn 2 120
8 Big C Ubon Ratchathani 4 121
9 Lotus Phitsanulok 2 122
10 Sahathai Nakhonsithammarat 2 123
11 Big C Chonburi 3 124
12 Ocean Chumphon 5 125
13 Lotus Phatthalung 3 126
14 Singburi 3 127
15 Loei 3 128
16 Robinson Hua Mark 4 129
17 Lotus Phichit 3 130
18 World Trade Center Viantian - Laos 7 131
76% 74% 70% 71%61% 59% 57% 52%
24% 26% 30% 29%39% 41% 43% 48%
Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16
BKK UPC
LIFESTYLEentertainment
Capitalizing on provincial growth. MAJOR plans to expand its locations more in provincial, where thereis room for growth. Cinema is cheap entertainment that young people love to come and it got lessimpact from macro economic.
2Q12 2Q13
Focus on growth strategy platform to remain strong momentum earnings.
Data as of February 2017
EXPANSION PLAN
19
267 269 294 294 304 336 346
94 114119
185 209253
316
361 383413
479520
601
678
750
0
100
200
300
400
500
600
700
800
Y10 Y11 Y12 Y13 Y14 Y15 Y16 Targeting 2017
BKK UPC International Number of Screens
+50
+20
~
LIFESTYLEentertainment
M Generation (Loyalty Program) 3,400,000 Members
Facebook: www.facebook.com/MajorGroup 3,837,000 Fan page
Twitter: MajorGroup 2,160,00 Followers
Instagram: MajorFriends 261,000 Followers
Mobile Application 7,500,000 Download
20
Major leverage by using social media and loyalty program to create frequency movie as well as nurture movie culture.
ID line: MajorFriends 15,464,000 Friends
SOCIAL MEDIA PLATFORM LIFESTYLEentertainment