Cinema Industry

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Cinema Industry MAJOR CINEPLEX GROUP PLC. 1Q20 Analyst Meeting 18th May 2020 1 AGENDA 01OVERVIEW 02 BUSINESS OVERVIEW 03 FINANCIAL OVERVIEW ABOUT P.16 COMING P.28 FINANCIAL HIGHLIGHT P.3 MAJOR CINEPLEX ATTRACTION MOVIE RESULT LINE – UP 2020 - 2022 P.9 GLOBAL MARKET OVERVIEW P.21 EXPANSION P.3 BALANCE SHEET SNAPSHOT P.26 DIVIDEND PAYOUT 2 MAJOR CINEPLEX AT A GLANCE Major Cineplex : The Leader in Thailand Cinema Industry The Biggest Cinema Operator in Thailand, Cambodia, Laos. Currently operating 815 Screens in 171 Locations (Thailand: 776 Screens/ International: 39 Screens) MAJOR has branches in 62 out of 77 provinces throughout Thailand. Focusing on provincial expansion with reasonable revenue sharing site leases. Investment per screen is the lowest if compare with competitors. ABOUT CINEMA INDUSTRY IN THAILAND · 2 Keys Players in the market (all local players) Market Share in Thailand (Based on Cinema Revenue) Major Cineplex: 70% SF Cinema 29% Other 1% · Total 1,204 Screens in Thailand. 3 Thailand’s exclusive operators of IMAX, 4DX, ScreenX (270 degree screen), LED Screen (first in S/E Asia), Laser Projector. Exclusive IMAX license in Thailand (8 IMAX) Kids Cinema (13 locations) Dell Gaming Esports Cinema World’s first E-Sport Cinema, the company’s strategy to cater to Thailand’s growing market for e-sports competition. 4 NEXT GENERATION TICKETING APP Introduce Mobile Application for intelligent movie ticketing. Create a database of movie goers identifying customer profile and complete understanding of movie interest and preference Build new business models through movie ticketing Increase ticket sales by enhancing customer providing relationship and providing smart recommendation To improve efficiency and reduce cost through digitalization of movie experience and data analysis 5 ADVANCE DIGITAL PLATFORM TO CONNECT WITH CUSTOMERS • Online Ticketing & Ticketing Machine contribute 80% of Admission Revenue. • Most advanced in cinema mobile application, customers can buy ticket through Mobile Application, E-Ticketing Machine, Line Pay or even from Facebook app. • M-Generation (Loyalty program) collects customers database for data analysis. • Focus on Digital and Technology to reduce cost & manpower. 6 M-GENERATION CUSTOMER PROFILE MGEN No. of Movie / Person / Year 1-3 movies a year 40% 5MB 4-6 movies a year 25% Members 7-10 movies a year 20% >10 movies a year 15% % 25% 29 14% 42% 58% A 23% G E 7% 2% YEARS | <12 | 13 – 18 | 19 – 23 | 24 - 30 | 31 – 60 | >60 Main Customers are between 13 – 30 years old. 7 SOCIAL MEDIA PLATFORM Various media platforms and loyalty programs increase viewing frequency as well as nurture movie culture. LINE FACEBOOK TWITTER INSTAGRAM YOUTUBE MAJORFRIENDS MAJORGROUP MAJORGROUP MAJORFRIENDS MAJORGROUP 15.8 M 5.5 M 2.6 M 501 K 989 K FRIENDS FANPAGE FOLLOWERS FOLLOWERS SUBSCRIBERS MOBILE APPLICATION M GENERATION M PASS WEBSITE EMAIL SUBSCRIBERS 11 M 5 M 125 K 5 M 1.5 M DOWNLOAD MEMBERS MEMBERS VISITORS / MONTH MEMBERS ( STARTED FROM JAN’18 ) Data as of May 2020 8 GLOBAL MARKET: INDUSTRY OVERVIEW Global Digital Screen Global Screens 2015 2016 2017 2018 2019 % Change YoY U.S./Canada 42,552 42,659 43,216 43,459 43,681 0.5% International 98,498 112,405 126,059 138,535 151,601 9.4% Total 141,050 155,064 169,275 181,994 195,282 7.3% Thailand 628 678 710 782 814 4% 182,019 169,275 155,064 141,050 2019: 127,466 Total cinema screens increased 151,601 7% globally, surpassing 200,000 126,059 138,535 112,405 78% screens due to continued 12% 98,498 growth in Asia Pacific region. 42,552 42,659 43,216 43,459 43,681 SCREEN 2015 2016 2017 2018 2019 U.S./Canada International 9 GLOBAL MARKET: INDUSTRY OVERVIEW Global Box Office – All Films (US$ Billions) % Change % Change Global Box Office 2015 2016 2017 2018 2019 19 vs 18 (YoY) 18 vs 14 U.S./Canada 11.1 11.4 11.1 11.9 11.4 -4% 2% International 28.0 27.9 29.8 29.9 30.8 3% 10% Total 39.1 39.3 40.9 41.8 42.2 1% 8% 2019 Top 10 International Box Office The global box office markets for all films released in each country around the world reached $42.2 billion in 2019, up to 1% over 2018’s total. The international 1 China $9.3 (excluded U.S./Canada) box office market reach to $30.8 billion, increased 3%. 2 Japan $2.4 (US$ Billions) 3 South Korea $1.6 40.6 41.1 36.4 38.4 38.8 4 U.K. $1.6 5 France $1.6 28 27.9 29.8 29.9 30.8 6 India $1.6 (72%) (71%) (71%) (73%) (71%) 7 Germany $1.2 11.1 11.4 11.1 11.9 11.4 8 Mexico $1.0 (28%) (29%) (29%) (27%) (29%) 9 Russia $0.9 2015 2016 2017 2018 2019 U.S./Canada International 10 Australia $0.9 10 GLOBAL MARKET: INDUSTRY OVERVIEW Cinema growth vs. Disruption Global Cinema revenue shows sustainable growth. Major studios produce more movies to serve globals’ cinemas especially Asian’s market Streaming platform provides difference experience from cinema. The cinema offers an immersive social experience that people 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 cannot duplicate entertainment at home. Steaming is mostly original series while Movie content is event focused. Before Netflix, consumers rented VHS tapes or DVDs and watched whatever was on live TV. Now, consumers can stream content instantly to any device, anywhere. Netflix has changed how consumers access TV. Original content is what stands out to viewers. 11 GLOBAL MARKET: INDUSTRY OVERVIEW Steaming Data: Streaming services are not disrupting movie theaters. Netflix’s Most Popular U.S. The theatrical and home entertainment sectors both grew in 2019, Titles in April 2020 Show because the customers are the same group, which finds that Originals TV shows, But people who go to movies in theaters more frequently also consume Not Movies more streaming content. Hollywood studios have adopted at least 90-days theatrical release window, which means the film will run in theaters for that time period before being available on video-on-demand or on a streaming service’s site or app. Estimated number of active streaming subscribers of Netflix in Thailand 2019 was 358K members (included free trial) and majority customer are in capital via movie ticket was sold 45 million across nationwide. 12 GLOBAL MARKET : INDUSTRY OVERVIEW Developing Countries Developed Countries Country Thailand India China South Korea Japan Number of Screens 1,164 11,179 60,079 2,937 3,561 Total Guest Counts 45 2,015 1,720 217 170 Population (million population) 69 1,342 1,399 51 127 Average admission per capita 0.77 1.50 1.2 4.2 1.3 26% 51% 49% 38% 45% Local Films 74% 55% Hollywood 62% (Other) Films Thailand South Korea China Japan The number of screens in Asia Pacific Region continually grow year on year and Box office grows according to growth in blockbusters, In developed countries, box office revenue is raised by both Local films and Hollywood films. Developing countries should follow this positive trend. 13 THAILAND MARKET : LOCAL CONTENTS INDUSTRY 50% 45% 40% People’s Democratic Reform Committee 34% 35% 31% Royal Cremation Ceremony Mourning 29% for the late King period 30% Bhumibol Adulyadej 26% Thailand 31% 25% 25% floods 22% 20% 23% 15% Thai Coup 15% 10% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Positive development for Local contents industry after lacks of contents due the situations over past years. MPIC group will produce at least 10 movies a year in different models and JV models also there are expertise production house like Workpoint or BEC to produce more contents to serve Thailand and International markets. 14 BUSINESS REVIEW 15 2H20 HOLLYWOOD: MOVIE LINE UP BLOCKBUSTER THAI MOVIES Black Widow Untitle ghost movie (GHD) Wonder Woman 1984 My God Father (M) No Time to Die Pojjaman (M) Top Gun 2 : Maverick Untitle comedy movie (GHD) Godzilla vs. Kong My boss is serial killer (M) Mulan E-riem sing (M) G.I. Joe : Snake Eyes Mother Gamer Tanet My Rhythm Infinite Cute boy Project Free Guy Estimate 20 - 25 Thai Movies Dune in 2H20 *(Data as of May20) A Quiet Place Part 2 Hitman Bodyguard 2 ANIMATION The Forever Purge Trolls World Tour Peninsula The SpongeBob 3 Monster Hunter The Croods 2 Conjuring 3 Soul Fantasy Island Tom & Jerry Greenland Clifford the Big Red Dog Halloween Kills Stand by me Doraemon 2 Please note that release dates are subject to change. 18 2021HOLLYWOOD: MOVIE LINE UP HOLLYWOOD ANIMATION Avatar 2 Raya and the Last Dragon (P) Fast & Furious 9 (P) Rumble (P) The Eternals (P) Peter Rabbit 2 (P) Masters of the Universe (P) The Boss Baby 2 Morbius (P) Cruella Venom: Let There Be Carnage (P) Jungle Cruise (P) Minions : The Rise of Gru Jurassic World: Dominion Barbie Mission: Impossible 7 Hotel Transylvania 4 Shang Chi and the Legend of the PAW Patrol: The Movie Ten Rings Untitled Pixar Animation Spider-Man: Homecoming 3 Cinderella The Batman Guardians of the Galaxy Vol. 3 Fantastic Beasts and Where to Find Them 3 Tomb Raider 2 The Matrix 4 The Suicide Squad 2 Sherlock Holmes 3 Untitled Paramount/Hasbro Film *Please *Please note (P) that stands for postpone from to 2020 2021 Untitled WB Event Film #2 Ghostbusters: Afterlife (P) Untitled Disney Live Action I 18 *Please note that release dates are subject to change. 2022 HOLLYWOOD: MOVIE LINE UP HOLLYWOOD Captain Marvel 2 Black Panther 2 Thor: Love and Thunder Spider-Man: Into the Spider-Verse 2 Aquaman 2 Fast & Furious 10 Guardians of the Galaxy Vol.
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