Public Expose PT Global Mediacom Tbk Selasa, 11 Agustus 2020 Disclaimer By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information and opinions contained in this presentation are intended solely for your personal reference and are strictly confidential. The information and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. 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PT MNC Vision Networks Tbk – Corporate Update Global Mediacom Corporate Structure 4 Global Mediacom 1H-2020 Financial Results Consolidated Income Statement Actual Variance Actual (In Million Rupiah) 1H-2020 1H-2019 YoY Revenues 5.862.424 6.361.177 -8% Advertising Digital 409.080 325.215 26% Non-Digital Advertising 3.206.694 3.707.530 -14% Content 807.924 912.898 -11% Advertising and Content 4.423.698 4.945.643 -11% Pay TV and Internet Broadband 1.733.596 1.549.668 12% Others 273.011 681.058 -60% (Elimination) (567.881) (815.192) -30% Direct Cost *) 2.390.551 2.752.243 -13% Depr. & amort. In Direct Cost 622.261 644.473 -3% Gross Profit 2.849.612 2.964.461 -4% Gross Profit Margin 49% 47% General and Administrative Expenses *) 1.021.851 1.074.599 -5% Depr. & amort. In G&A 180.518 141.974 27% EBITDA 2.450.022 2.534.335 -3% EBITDA margin 42% 40% Net Income 1.017.330 1.056.056 -4% Net Income Margin 17% 17% Non-Cash Expenses (non-recurring) Unrealized on foreign exchange 23.880 (87.110) Net Income (without non-cash expenses) 1.041.210 968.946 7% Net Income Margin 18% 15% 5 *) excluding depreciation and amortization Global Mediacom FY-2019 Financial Results Consolidated Income Statement Aktual Variance Aktual (In Million Rupiah) FY-2019 FY-2018 YoY Revenues 12.936.503 11.695.216 11% Advertising (Digital + Non Digital) Digital 697.396 261.101 167% Non Digital Advertising 7.367.741 6.981.300 6% Content 1.740.365 1.518.392 15% FTA and Content 9.805.502 8.760.793 12% Pay TV and Internet Broadband 3.629.626 3.228.257 12% Others 1.311.621 1.463.949 -10% (Elimination) (1.810.246) (1.757.783) 3% Direct Cost *) 5.334.929 4.827.093 11% Depr. & amort. In Direct Cost 1.283.916 1.220.838 5% Gross Profit 6.317.658 5.647.285 12% Gross Profit Margin 49% 48% General and Administrative Expenses *) 2.297.978 2.138.358 7% Depr. & amortization 313.221 278.005 13% EBITDA 5.303.597 4.729.766 12% EBITDA margin 41% 40% Net Income 1.403.736 826.636 70% Net Income Margin 11% 7% *) excluding depreciation and amortization 6 1. PT Global Mediacom Tbk – Corporate Structure Content 2. PT Media Nusantara Citra Tbk – Corporate Update 3. PT MNC Vision Networks Tbk – Corporate Update MNCN Key Investment Highlights 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), 1. GDP hit more than $1trillion 2. Large population of 270 million with 97 million subs by the end of July 2020. for the first time in 2018 with annual people, growing by 3-4 million people growth rate between 5-6%. every year for the next 15 years. 10. Owning the largest sites called Okezone (#1 above Google #2) and Sindonews (#6) based on Alexa measurement. 3. Significant upside potential for adspend growth since adspend to GDP ratio is ▸Okezone has more than 20 million UV daily only 0.2%, one of the lowest in Asia. ▸Okezone is ranked #24 globally. 4. Adspend on National FTA and digital will grow from 80% to close to 90% of the 11. Strong growth in digital advertising revenue national adspend in the next 3-4 years. ▸Derived from mobile apps, general/news portal, YouTube revenue share ▸Excluding future digital revenue from RCTI+ and MCN. 5. Four National FTA 12. Strong growth in Non Time with the largest audience share of 40% and adspend share of 45%. Consuming Ads (NTC Ads) in the ▸40% audience shares translate to more than 100 million viewers daily, the largest in form of built in, virtual and squeeze the country even if it’s compared to any social media platform. frame as well as equity link. ▸Launched its streaming (OTT) service called RCTI+. 6. The Largest Content Production 13. FY-2019 financial performance: of 23K hours yearly in long, mid and short formats: ▸YoY revenue to $600mn, up 12% ▸40% market share in drama or close to 5,000 hours of drama production yearly. ▸YoY EBITDA to $267mn, up 17% ▸80%+ market share in talent search & animation. ▸YoY profit to $169mn, up 47% 7. The Largest Library 8. The Largest Talent Management 14. Fast growing digital and content revenue: with more than 300K hours, with close to 400 talents under ▸In FY-2019, growing by 37% YOY, contributing more than 25% of the total revenue. consisting of more than 60% non management with 5 + 5 years option to ▸Projected to contribute more than 40% in 2022 and more than 50% in 2024. news content. extend. At 15x P/E multiple, stock price is equivalent to Rp2,500. 8 Macro Drivers Support Industry Growth Population & Real GDP (US$) (2019) What are the macro drivers ? . 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 Source : Worldbank.org Indonesia Growth of Real GDP (%) A Young Population (2019) 9 The Largest Integrated Media Company in Southeast Asia *As of June 2020 56.28%* Public 43.72% Free To Air / TV Content & IP Digital Entertainment Production 5 in 1 Entertainment App • Video Streaming • News Aggregator • Audio Aggregator • User Generated Entertainment FTA focusing on Content (UGC) family audience Talent Management Content Library • Games Aggregator Information and sports Social Media/ Others • Youtube & Facebook Largest news TV and provide The biggest talent management Content library contains more channels news programs to the Group’s company supported with music than 300,000 hours and increasing • MCN 3 entertainment FTA label and publishing unit by more than 23,000 hours per • News & General year Portals 10 Indonesia Advertising Market Share 2018 • 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. 2022 11 The Largest Audience Share & FTA TV Advertising Market Share MNCN Audience Share 2010 – 2020 *Source : Nielsen (Q2-2020) Indonesia FTA TV Advertising Market Share 12 TV Advertising Revenue o Conventional TVC (15” and 30”) during commercial break.