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Enriching Ecosystem

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Enriching Ecosystem Enriching the Ecosystem ANNUAL REPORT 2013 Enriching the Ecosystem ENRICHING THE ECOSYSTEM We believe the ecosystem for creative content industry is still evolving. It is still a learning curve for us and for the industry, it is hardly beginning. The dynamic evolution of creative interactions and evolutionary networks of content across multiple devices have yet to show its true colours. We believe “connected consumers” will drive media companies like us to new areas and dimensions. We have to be agile to prepare ourselves for the new demands. We have to understand what the consumer wants. www.mediaprima.com.my WHAT’S INSIDE? OUR PERSPECTIVE OUR LEADERSHIP 6 Chairman’s Statement 114 Our Board of Directors 14 Group Managing Director’s 116 Directors’ Profile Statement 124 Senior Management Profile 20 Review of Operations OUR CORPORATE OUR COMPANY GOVERNANCE 52 Corporate Profile 134 Statement on Corporate 54 Our Milestones Governance 58 Corporate Structure 148 Additional Compliance 60 Organisational Structure Information 150 Statement on Risk OUR STRATEGY AND Management and Internal ACHIEVEMENTS Control 62 Snapshots of 2013 158 Audit Committee Report 66 Awards and Recognition 166 Risk Management 70 Media Prima in the News Committee Report OUR PERFORMANCE OUR FINANCIALS 72 5-Year Financial Highlights 169 Financial Statements 73 5-Year Growth Summary 74 Simplified Group Statement ADDITIONAL INFORMATION of Financial Position 275 Analysis of Shareholdings 75 Segmental Analysis 278 Analysis of Warrant 76 Statement of Value Added Holdings & Distribution of Value 281 List of Properties Held by Added the Group and Usage of 77 Viewership, Listenership & Properties Readership Data 286 Corporate Information 78 Share Price Chart 79 Group Financial Review AGM INFORMATION OUR SOCIAL 289 Notice of Annual General RESPONSIBILITY Meeting 293 Statement Accompanying 80 Human Capital Development Notice of Annual General 86 Occupational Safety and Meeting Health 294 Financial Calendar 88 Customers and Suppliers Development • Proxy Form 94 Corporate Responsibility • Group Directory 106 Commitment to the Environment 113 Investor Relations CONSUMER CENTRIC ORGANISATION • Multiple touch points • Seamless integration VISION between platforms A Content Powerhouse offering 1• One-stop media solution Multiple Media Platforms Synchrosound Studio Sistem Televisyen Malaysia Berhad Sdn Bhd Max - Airplay One FM Radio Sdn Bhd Sdn Bhd Natseven TV Sdn Bhd Big Tree Outdoor Alt Media Sdn. Bhd Sdn Bhd Metropolitan TV Sdn Bhd www.tonton.com.my www.gua.com.my CH-9 Media Sdn Bhd Kurnia Outdoor Sdn Bhd www.seroja.com.my REVENUE • ADEX revenue-based • Multiple revenue sources - consumer-based content and developed distribution network 3• New revenue sources CONTENT • HIT content • First in news, analytical and in depth information 2 • Best-in-class content CLIENTS READERS LISTENERS MONKEY BONE VIEWERS STAKEHOLDERS gbgrand brilliance Grand Brilliance PARTNERS gbgrand brilliance SHAREHOLDERS The 8unit CONSUMERS gbgrand brilliance emas CREATIVE INDUSTRY MISSION To produce “best-in-class” content, products and services. Content that is accessible via multi-platform, unique, relevant and contemporary. Media Prima Television NSTP Augmented Reality Big Tree Outdoor (BTO) is Networks (MPTVN) has application was launched on the largest and undisputed the largest reach in terms September 16, 2013 for all of market leader in integrated of viewership with 42.2% its three newspapers – NST, out-of-home (OOH) media market share via its top BH & HM. solutions in Malaysia. BTO 4 premium channels. has been awarded as the “Syok Sabtu”, the Saturday OOH Media of the year for MPTVN owns the top 20 newspaper for Harian Metro 5 consecutive years. programmes across all recorded the highest sales in channels including pay-tv Harian Metro’s history by (for period January – selling 841,000 copies on December 2013). November 30, 2013. MPTVN dominates 60% market share of audience during the super prime time hours (8pm – 9pm). Media Prima Digital Primeworks Studios Sdn Bhd Media Prima Radio reaches out to the has been producing TV content Networks has the largest affluent market via since 1984 and feature films online and social media 14 portals with up to since 1994, it generates an presence in the country 7.6 million monthly average of over 5,000 hours of with strong following on unique visitors and over content for TV annually. major social media of 3.5 million registered 4.4 million and is the users. Media Prima homeground of the Digital is the No.1 Generation Y. Digital Media Group in Malaysia. We are deeply motivated to consistently delight our consumers. We know that getting better means making sure we are listening to you. That’s why we are embracing new ideas that will make your experience with us compelling, meaningful and enjoyable. We are committed to deliver quality content, product and services to our consumers. pg 6 Chairman’s Statement It is interesting to note that the country’s first private TV station came into being 139 years Enriching after the Straits Times, the precursor of the current New Straits Times. A century and a half is a relatively short period in the history of the mankind. But for Media Prima Berhad (MPB) it is a significantly historic and meaningful 14 decades of achievement, drama and challenges. Ecosystem The Straits Times was as much a proud tradition of this company, as is TV3, both pioneers in their respective fields, both redefining what we are today and both signifying a journey through and uncharted waters and unfamiliar territories. We have certainly come a long way. From the nourishing publication of the oldest newspaper in the land, the transmission of TV3 as a channel, the reconsolidation of media assets that became it to be MPB in 2004, here we are now, the country’s only, fully, truly, integrated media company. We have every reason to be proud of what we have OUT-OF-HOME achieved, so too, I believe our stakeholders and sustainable shareholders. But complacent we are not, we will thrive for the better, for excellence. In a competitive atmosphere as it is now, we believe in sheer hard work and commitment. And more importantly we realised we are in an industry DIGITAL MEDIA unlike any other. We are in the content industry, an industry defined by ideas, new thinking, innovation and above all, creative people thinking beyond the ordinary. In the creative content 2013 industry, the notion of “content” in itself is self-explanatory. Content is king in this business. We survived on the capital “I” (Ideas). Ideas will determine the winners. And leaving the losers in annual report the dusts, literally. In short, ideas matter. Prima Berhad Media Our Perspective pg Our Company Our Strategy &Our Strategy Achievements 7 Our Performance Our Social Responsibility Our Leadership DATUK JOHAN BIN JAAFFAR Chairman Our Corporate Governance Our Financials Additional Information AGM Information AGM pg 8 Chairman’s Statement We need ideas, lots and lots of great ideas, super ideas, killer ideas, to position ourselves as leaders in an ever changing customers’ taste, wants and preferences. But to nurture ideas, to facilitate thinking out of the box and to be a contrarian in executing ideas, one needs a correct atmosphere, a system theory, a renewable strategy and a conducive sphere. In short the right ecosystem. An ecosystem is defined by a complex set of relationship among the living resources and habitats of an area. In our context it simply means an emergent creative ecosystem that allows thinking, planning and activities to blossom and ideas to flower. For us, we need more than the dynamic interactions and conducive atmosphere from within, the outside influence play a role too. So, the right policy, economic stimulant and creative vibrancy of the nation are equally important. For people like those dealing with creative products in this company, the ecosystem TURNING must be right to bring out the best from them. Creative content is part IDEAS of the creative economy at large. INTO Thus, enriching the ecosystem is critical to us. In fact, our survival ENTERPRISE depends on it. OUT-OF-HOME When the Straits Times was published in 1845, Malaya and Singapore were under the yoke of colonialism. The newspaper was meant for the English expatriates, orientalists and the local elite. Education for the masses was still limited to religious education and schools were meant for the privileged. When TV3 made its full transmission debut on June 1, 1984, Malaysia was already a nation to be reckoned with. Tun Dr Mahathir Mohamad, the country’s third Prime Minister was already in his fifth year at the helm. He was already steering the country to new heights – embarking into high technology DIGITAL MEDIA initiatives, among other things. He was a man with vision. He transformed this nation. It was through his prism for a better future that we have seen dramatic changes to the country – from an agriculture backwater to a nation brimming with enthusiasm, confidence and pride. Malaysia was never the same again. 2013 What a difference 139 years can make – between the first publication of the Straits Times and the birth of TV3. And what a difference it can be between 2004, the year the newly restructured media entity, MPB, reared its head and now. It all boils down to the correct annual report ecosystem supporting the changes needed for a nation to charge ahead, an economy that will support the grandiose schemes of a visionary Prime Minister and the private sector to help spearhead the transformation. It was a classic example of Malaysia Inc – the symbiotic relationship between the public and the private sectors to ensure success and greatness together. Prima Berhad Media Our Perspective pg Chairman’s 9 Statement Our Company Companies benefitted from the political stability, him on YouTube. The world as we know has changed. Our Strategy &Our Strategy conducive economic realm and more importantly for There is another dimension to it – the democratisation Achievements us, the right value system to support the creative of digital access.
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