COMPANY PRESENTATION WORKPOINT ENTERTAINMENT PUBLIC COMPANY LIMITED 2Q13 ANALYST MEETING
1 DISCLAIMER
Workpoint Entertainment Public Company Limited (“Work”) are pleased to provide this presentation which is intended for discussion purposes only. Although the information provided herein is believed to be reliable, Work makes no representation as to the accuracy or completeness of such information or otherwise provided by Boutique. Prior to acting on any information contained herein, the receiver should determine the risks and merits, including legal, tax and accounting characterizations and consequences without reliance on Work. This presentation and the content of any document relating thereto are proprietary to Work and may not be reproduced or otherwise disseminated in whole or in part without Work’s prior written consent 2 BUSINESS OVERVIEW
3 EVENUE TRUCTURE 1,200.0 R S 976.7 1,000.0 Revenue Contribution 75.2 -32.7% 800.0 20.1% 17.6% 0.8% 102.8 37.5% 606.1 610.9 565.4 TV Production Satellite TV 600.0 515.6 58.0 411.3 429.3 125.4 65.6 Publishing Animation 49.6 59.8 47.2 63.3 400.0 37.7 42.2 61.7 9.6 754.7 Movie Concerts and Showbiz 13.6 39.4
200.0 397.2 404.8 403.5 419.5 Event Marketing Other Income 326.5 335.2
- 11.8% 7.7% 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 6M2013 10.5% 5.4% 944.9 3.4% 976.7 111.3 75.2 51.3 102.8
76.6% 77.3% 723.8 754.7
6M2012 6M2013 6M2012 6M2013 4 TELEVISION PRODUCTION Revenue from TV Program Production
Total TV Free TV Satellite TV
1Q 1Q Utilization 1Q
Revenue GPM %GPM Revenue GPM %GPM Rev. GPM GPM% 10.1% 68% 2.7% 63% 189% 400.0 60.0%
350.0
50.0% 51.0% 400.0 80.0% 300.0
350.0 70.0%
40.0%
250.0 40.9% 300.0 52.4% 60.0%
50.0 20% 200.0 374.6 30.0% 250.0 48.1% 50.0% 16% 39.4 200.0 40.0% 40.0 10% 150.0 340.1 20.0% 150.0 30.0% 30.0 0% 100.0 326.5 335.2 100.0 20.0% 20.0 -10% 173.4 153.2 10.0% 13.6 50.0 50.0 161.2 10.0% 171.1 10.0 2.2 -21.7 -20% - 0.0% - 0.0% - -30%
-10.0 -40% 1Q 2012 1Q 2013 1Q 2012 1Q 2013 -20.0 1Q 12 1Q 13 -55% -50% -30.0 -60% Note : GPM in 1Q is adjusted by company for comparison
2Q 2Q 2Q 5.6% 11% 600.0 80.0% 67.9% 86% 77% 482.9 70.0% 500.0 434.9 450.0 60.0% 60.0%
400.0 400.0 56.5% 58.0% 39.3% 50.0% 350.0 57.4% 70.0 63.3 80%
300.0 56.0% 300.0 40.0% 60.0
70%
250.0 52.5% 50.0 419.5 54.0% 30.0% 37.7 60% 200.0 397.2 200.0 40.0
50% 150.0 52.0% 245.7 20.0% 227.8 30.0 48% 100.0 100.0 20.0 40%
50.0% 189.8 10.0% 220.1
50.0 10.0 18.0 -16.7 30%
- 0.0% - 48.0% -
20%
-10.0
10% 2Q 2012 2Q 2013 2Q 2012 2Q 2013 -20.0 2Q 12 2Q 13 5
-30.0 0% TELEVISION PRODUCTION : JAN - JUN
Revenue from TV Program Production Free TV Unit : MB 1,000.0 80.0% Revenue GPM %GPM Utilization 10.6% Unit : MB
900.0 77% 4.3% 70%
857.5 70.0%
800.0 775.0 800.0 56.0%
700.0 55.0%
60.0% 55.1% 600.0 50.5% 54.0%
500.0 53.0%
700.0 400.0 723.8 754.7 52.0% 54.1% 300.0 51.0%
200.0 50.0% 50.0% 399.0 381.3 100.0 49.0% 600.0
- 48.0% 6M 2012 6M 2013 500.0 40.0% 40.0% 419.0
400.0 Satellite TV 343.0 30.0% Unit : MB
300.0 100.4% 20.0%
120.0 50.0%
200.0
40.0% 100.0 39.2%
30.0%
80.0
10.0%
20.0%
60.0
100.0
10.0%
40.0 102.8
0.0%
20.0 20.1 51.3 (38.3) -10.0% - 0.0% -
-20.0%
(20.0) 6M 2012 6M 2013 6M 2012 6M 2013 -30.0% (40.0) -40.0%
(60.0) -50.0% Revenue GPM %GPM -37.3% 6 TELEVISION PRODUCTION : FREE TV
Programs Arrangement in 2nd Half of 2013
June 13 Jul 13 Aug 13 Sep 13 Oct 13
Air-time Based Mixed Sponsor & Air-time
Air-time Based Mixed Sponsor & Air-time
Air-time Based
Volleyball 7 TELEVISION PRODUCTION : FREE TV
CARABAO THE BAND Volleyball THE SERIES CH. 9 CH. 3 CH. 9 Re-run : WP TV Re-run : WP TV, CH .6 Wed. 20.30-21.30 Sat. 15.00-16.00 Start 4-8 Sep 2013 Start 28 Aug 2013 Start Oct 2013
Drama Series Variety, Sport Event Band Competition 8 9 TELEVISION PRODUCTION : FREE TV
10 10 TheBand www.TheBandThailand.com
11 TELEVISION PRODUCTION : FREE TV 3 Year Contact for World Championship & World Cup
Group A Group B
JAPAN CHINA World Rank (3) World Rank (5)
THAILAND SOUTH KOREA World Rank (12) World Rank (11)
TAIPEI KAZAKHSTAN World Rank (28) World Rank (30)
VIETNAM NEWZEALAND 2014 FIVB Women's Volleyball World Championship World Rank (93) World Rank (71) qualification(AVC) AUSTRALIA INDIA 4-8 Sep 2013 @ Japan World Rank (103) World Rank (103)
12 TELEVISION PRODUCTION : SATELLITE TV Ranking from past 3 months No. May-13 No. Jun-13 No. Jul-13 1 CH6 1 CH6 1 CH6 2 CH 8 2 CH 8 2 CH 8 3 WORKPOINT TV 3 WORKPOINT TV 3 WORKPOINT TV 4 MIRACLE 4 MIRACLE 4 MIRACLE 5 SARANAIR CHANNEL 5 SARANAIR CHANNEL 5 40-50 CHANNEL 6 STAR MAX CHANNEL 6 40-50 CHANNEL 6 STAR MAX CHANNEL 7 ZAA NETWORK 7 ZAA NETWORK 7 ZAA NETWORK 8 GREEN 8 GREEN 8 SARANAIR CHANNEL 9 40-50 CHANNEL 9 STAR MAX CHANNEL 9 S CHANNEL 10 ONE 10 SUN CHANNEL 10 SUN CHANNEL Source : AC Nielsen (Ranking By Type : All 4+ , Prime Time : Mon-Sun 18:30-22:30)
No. May-13 No. Jun-13 No. Jul-13 1 CH-3 1 CH-3 1 CH-3 2 CH-7 2 CH-7 2 CH-7 3 CH-6 3 CH-6 3 CH-6 4 CH-9 4 CH-9 4 CH-9 5 CH-5 5 CH-5 5 CH-5 6 ASIA UPDATE 6 ASIA UPDATE 6 MEDIA NEWS 7 WORKPOINT TV 7 MEDIA NEWS 7 WORKPOINT TV 8 GANG CARTOON 8 WORKPOINT TV 8 ASIA UPDATE 9 SABAIDEE TV 9 CH-8 9 CH-8 10 CH-8 10 SABAIDEE TV 10 SABAIDEE TV 13 Source : PSI Website TELEVISION PRODUCTION : SATELLITE TV
Workpoint TV
Plan & Performance As at the end of June 2013, Workpoint TV has unrealized revenue based on Ads contacts on hand at the amount of 70 MB.
Programs produced by 3rd parties will be re-arranged and replaced by Workpoint TV programs in the past which will lead to cost reduction starting from July onward.
Currently, broadcasting through PSI channel 7, True Vision channel 66, True HD channel 77, GMM Z channel 77, Sun box channel 92, and CTH channel 114
14 TELEVISION PRODUCTION : SATELLITE TV
Channel 6
Channel 6
• Start to sell Ads. in June 2013 after Test-run in 1Q2013 • As at the end of June 2013, CH6 has unrealized revenue based on Ads contacts on hand at the amount of 12 MB. • Currently, broadcasting through PSI channel 6, True Vision channel 30, True HD channel 45, GMM Z channel 76
Additional costs will be minimal as the programs will be mainly used from contents in stocks.
15 EVENT MARKETING Revenue from Event Marketing Unit : MB 1Q Revenue GPM %GPM Events in Pipeline
70.0 -84.5% 30.0% rd 60.0 28.9% 29.0% . TV Production for 3 Parties
50.0 28.0%
40.0 61.7 25.2% 27.0%
30.0 26.0% 20.0 15.6 9.6 25.0% 10.0 2.8 24.0%
- 23.0% 1Q 2012 1Q 2013 32.1% 2Q13 – 3Q13 3Q13 – 4Q13 3Q13 – 4Q13 70.0 2Q 40.8%
60.0 40.7% 40.6%
50.0 39.9% 40.4% 40.0 65.6 40.2% 30.0 49.6 40.0%
20.0 39.8% . Event Organizer
10.0 20.2 26.2 39.6% - 39.4% • Plan to have at least 5 more big events in 2Q 2012 2Q 2013 3Q13 – 4Q13 6M -32.5%
120.0 40.0%
100.0 38.5% 38.0%
80.0 36.0%
60.0 111.3 32.1% 34.0% 40.0 75.2 32.0% 20.0 35.8 28.9 30.0% 3Q13 4Q13
- 28.0% 6M 2012 6M 2013 16 EVENT MARKETING
17 EVENT MARKETING
18 18 CONCERT &MOVIE
Revenue from Concerts and Showbiz Concerts in Pipeline . No Concerts and Showbiz in 6M13 Unit : MB . Plan to have 2 Events in 4Q13 Revenue GPM %GPM -76.2%
14.0 100.0%
90.0%
12.0
80.0%
10.0 87.9% 70.0% 60.0%
8.0
50.0%
6.0 26.6% 13.1 40.0% 3 CHA CARNIWOW 30.0% 4.0
20.0%
2.0 Start 9 Nov 13 – 11 May 14 KHUN PRA CHUA 3.5 3.1 2.7 10.0% - 0.0% 50 Shows throughout Thailand Oct – Nov 13 6M 2012 6M 2013 (8-10 shows in 2013)
Revenue from Movies Movies in Pipeline Unit : MB Revenue GPM %GPM . No Movie in 6M13 . Plan to have 1 movies in 4Q13
7.0 100.0% 120.0%
6.0 100.0%
5.0
80.0% Oh! My ghost
4.0 35.0% 6.5 60.0% 4Q 2013 3.0
40.0% 2.0 (Romantic Comedy)
20.0% 1.0 2.3 0.1 0.1
- 0.0%
6M 2012 6M 2013 19 FINANCIAL HIGHLIGHT
20 FINANCIAL HIGHLIGHT
Revenue & Net Profit
Unit : MB
Rev. Net Profit Dep. Amor.
1,200.0 70.0
976.7 60.0 1,000.0 944.9 59.1
700.0 40.0 606.1 610.9 50.0 800.0 565.4 35.0 600.0 515.6 33.7
40.0 30.0 500.0 429.3 411.3 600.0 25.5 25.0 400.0 30.0 14.9 20.0 22.7 28.6
300.0 12.6 400.0 15.0 11.0 11.8 15.0 20.0 200.0 13.6 13.7 10.0 8.7 200.0 100.0 7.3 10.0 5.5 5.0 3.3 85.4
32.9 - - 74.7 137.6 136.3 55.7 212.3 118.3
- - 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 6M2012 6M2013
21 FINANCIAL HIGHLIGHT
Total Assets and Total Equity D/E Ratio Unit : MB
1.0
0.9
0.8 2,000 1,813 1,853 1,863 1,687 1,731 1,713 0.7 1,800 1,600 1,407 1,420 1,447 1,389 0.6 1,400 1,336 1,335 0.5
1,200 0.4 0.3 1,000 0.3 0.3 0.3 0.3 800 0.3 0.2
600 0.2
400
0.1 200
- - 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013
Cash on hand Market Cap. Unit : MB Unit : MB
13,305 1,000.0 14,000
900.0 11,698 12,000 10,477 800.0
10,000 700.0 578.8 7,970 600.0 459.5 8,000 7,070 500.0 435.6
6,000 5,134 400.0 316.6 295.1 303.6 300.0 4,000
200.0
2,000 100.0
- - 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 22 NEXT STEPS : DIGITAL TV
23 DIGITAL TV LICENSES
Television Production : Digital TV
The timeframe of Commercial License bidding is expected to be in Nov 13- Jan 14
The Office of the National Broadcasting and Telecommunications Commission (NBTC) is planning to launch Digital TV not later than Mar 14.
100% switch from Analog TV to Digital TV within 2019
Commercial : 24 Channels
Public and Local Variety (HD) Variety (SD) News Children 24 Channels 7 Channels 7 Channels 7 Channels 3 Channels
Auction Reserve 1,510 MB 380 MB 220 MB 140 MB
+++ Must Carry Rule : Must be broadcasted in all Platforms +++
Source : NBTC
24 DIGITAL TV LICENSES
Regulation on the method for Digital TV Auctions (Commercial Channel)
Regulation Auction Winner Payment Criterion Network Expansion
Reserve price Forward Auction Channel Owner 4 payments Method Year 3-4 10% Year 1 50% 1 MB per application Can choose Channel Year 1 form per channel Number Year 2 50% Deposit 10% of 30% license reserve price Year 2 Can choose Network 80% Provider following 60 minutes Auction the winner Surplus of the reserve or until has a winner price (6 payments) Year 1-2 Year 3 Return deposit to 10% 90% un-success bidder within 30 days
HD Channel Bidder Year 4 100% not be able to bid for new channel. Year 3-6 20% 25 Source : NBTC DIGITAL TV LICENSES
Earlier process Timeframe Latest process Timeframe
Information Memorandum(IM) of Announcement 27 Aug 2013 27 Aug 2013 Invitation Clarification of IM 3 Sep 2013 3 Sep 2013 Process Selling Auction Application 10-12 Sep 2013 10-12 Sep 2013 Clarification of Auction Application 15 Oct 2013 15 Oct 2013
Application Period 28-29 Oct 2013 28-29 Oct 2013 Application Announcement of Qualified Application Mid Nov 2013 Mid Dec 2013 Process Mock-up Auction Nov 2013 End Dec 2013
Auction Date End Nov 2013 Mid Jan 2014 Auction Certification for Successful Bidder Mid Dec 2013 Feb 2014 Process Start Broadcasting End Jan 2014 March 2014
26 Source : NBTC CHANNEL ARRANGEMENT
Regulation on Channel Arrangement
Channel Arrangement Terrestrial: NBTC Box
• Channel 1 – 12 Pubic & Local
• Channel 13 – 15 Children
• Channel 16 – 22 News
• Channel 23 – 29 Variety SD
• Channel 30 -36 Variety HD
Channel Arrangement Cable & Satellite
• Channel 1 – 10 Depend on Service Provider
• Channel 11 – 22 Public & Local
• Channel 23 – 46 Commercial: News, Children, Variety SD & HD • Cable & Satellite Channel Others
Source : NBTC Q&A
28 THANK YOU
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