IPO REPORT MNC Sekuritas Research Division | 17 Juni 2019 PT MNC Vision Networks Tbk Media Sector Redefining Entertainment Pelopor Televisi Satelit Berlangganan Terbesar di Indonesia PT MNC Vision Networks Tbk (MVN) merupakan perusahaan penyedia layanan jasa informasi dan telekomunikasi serta saluran distribusi konten hiburan ataupun informasi baik dari dalam maupun luar negeri. MVN tergabung dalam perusahaan media terbesar Asia Tenggara di bawah naungan MNC Group. Perseroan menaungi tiga unit usahanya, yaitu: 1) PT MNC Sky Vision Tbk (MNC Vision/MSKY IJ) dengan market share sebesar 96% pada pasar Pay-TV berbasis DTH; 2) PT MNC Kabel Mediakom (MNC Play) sebagai pemain ke-tiga terbesar di bidang fixed broadband/IPTV; 3) PT MNC OTT Network (MNC Now) yang bergerak pada layanan siaran konten digital. Berawal dari PT MNC Sky Vision Tbk pada 1988 dengan branding “Indovision”, Perseroan berhasil memperluas jaringan dengan kepemilikan basis pelanggan sekitar 2,6 juta untuk IPTV/broadband dan direct to home (DTH) pada FY17 didukung oleh 101 kantor cabang dan lebih dari 2.000 tenaga sales yang tersebar di seluruh Indonesia. Keunggulan Kompetitif dan Prospek Bisnis MVN MVN terus berkomitmen dan fokus dalam menyediakan saluran distribusi konten hiburan yang berkualitas, baik dari dalam maupun luar negeri. Pada FY18, bisnis MNC Vision melalui DTH (direct to home) berkontribusi sebesar 79,81% terhadap total pendapatan. Sedangkan bisnis jasa broadband internet dan IPTV oleh MNC Play dan bisnis OTT oleh MNC Now masing-masing berkontribusi sebesar 19,87% dan 0,32%. Kami meyakini bahwa Perseroan memiliki prospek investasi yang menarik didukung oleh: 1) Penetrasi pada segmen Pay TV di Indonesia yang relatif rendah sebesar 13% dibandingkan dengan negara di Asia yang mencapai 71%; 2) Kekuatan branding dan kekuatan dalam memimpin pasar pay TV Indonesia; 3) Sinergi yang solid dengan Grup MNC; 4) Peluang penetrasi fixed broadband internet yang diprediksi mencapai 16% dengan jumlah pelanggan 11,3 juta pada FY23F; 5) Prospek industri OTT yang menjanjikan diiringi tingginya penggunaan gadget pada generasi milenial; 6) Tingkat leverage yang manageable dengan DER pada FY19E/FY20F berada pada level 0,88x/1,03x. Main Business Risk Perseroan memiliki beberapa risiko utama dalam menjalankan bisnisnya, antara lain: 1) Risiko persaingan usaha; 2) Risiko teknologi; 3) Risiko kebijakan pemerintah. Indicative Valuation: EV/EBITDA FY19E of 6,88x-7,11x Kami menggunakan pembobotan metode Relative Valuation yaitu EV/EBITDA, PE, PBV sebagai dasar pendekatan valuasi MVN saat Post-IPO. Nilai kapitalisasi pasar MVN Post- IPO diestimasikan pada rentang Rp8,15 triliun – Rp8,55 triliun. Nilai tersebut merefleksikan nilai EV/EBITDA FY19E sebesar 6,88x – 7,11x. Rekomendasi: NOT RATED. Key Financial Highlight Research Analyst In Billion IDR FY16 FY17 FY18 FY19E FY20F Victoria Venny N.S. Revenue 3,000 3,141 3,227 3,919 4,591 [email protected] EBITDA 1,019 1,306 1,356 1,745 2,112 (021) 2980 3111 ext. 52236 EBITDA Margin (%) 33.98 41.57 42.01 44.53 46.00 Net Profit (152) (78) (47) 172 373 T. Herditya Wicaksana Net Profit Margin (%) (5.07) (2.47) (1.46) 4.38 8.13 [email protected] ROA (%) (2.08) (0.74) (0.51) 1.66 3.14 (021) 2980 3111 ext. 52150 ROE (%) (3.87) (1.50) (1.55) 3.36 6.83 Sumber: MVN www.mncsekuritas.id MNC Sekuritas 1-500-899 [email protected] Page 1 Please see important disclaimer at the back of this report IPO Report | MNC Sekuritas Research Division VERY IMPORTANT NOTICE NEITHER THIS DOCUMENT NOR ANY COPY OF IT MAY BE TAKEN OR TRANSMITTED INTO OR DISTRIBUTED IN THE UNITED STATES, CANADA, JAPAN OR (EXCEPT TO THE EXTENT PERMITTED BY APPLICABLE LAWS AND REGULATIONS OF THE PRC) THE PEOPLE'S REPUBLIC OF CHINA (EXCLUDING THE HONG KONG SPECIAL ADMINISTRATIVE REGION)(THE "PRC"). ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF THE U.S., CANADIAN, JAPANESE OR THE PRC SECURITIES LAWS. THE DISTRIBUTION OF THIS DOCUMENT IN OTHER JURISDICTIONS MAY ALSO BE RESTRICTED BY LAW, AND PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, ANY SUCH RESTRICTIONS. THIS DOCUMENT IS BEING DISTRIBUTED BY PT MNC SEKURITAS IN THE INDONESIA. THIS DOCUMENT IS DIRECTED ONLY AT RELEVANT PERSONS AND IT IS NOT INTENDED TO BE DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON IN THE INDONESIA. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS COMMUNICATION RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH THE RELEVANT PERSONS. OTHER PERSONS SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS. THIS DOCUMENT IS FOR DISTRIBUTION IN THE ASIAN ECONOMIC AREA ONLY TO PERSONS IN THE ASIAN ECONOMIC AREA WHO ARE "QUALIFIED INVESTORS". THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES BY OR ON BEHALF OF THE COMPANY OR [[NAME OF DISTRIBUTOR OF RESEARCH REPORT] OR THEIR RESPECTIVE AFFILIATES], AND NEITHER THIS DOCUMENT NOR ANYTHING CONTAINED HEREIN SHALL FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER. ANY DECISION IN RELATION TO PURCHASE OR TO SUBSCRIBE FOR THE SHARES IN THE COMPANY SHOULD BE MADE SOLELY ON THE BASIS OF AN OFFERING CIRCULAR OR PROSPECTUS TO BE PROVIDED BY OR ON BEHALF OF THE ISSUER OF SUCH SHARES IN CONNECTION WITH ANY OFFERING. NO MONEY, SHARES OR OTHER CONSIDERATION IS BEING SOLICITED BY THE INFORMATION IT CONTAINS IN ANY JURISDICTION, AND, IF SENT IN RESPONSE TO THE INFORMATION IT CONTAINS, WILL NOT BE ACCEPTED. THE INFORMATION AND ANY FORWARD-LOOKING STATEMENTS, OPINIONS AND PROJECTIONS CONTAINED IN THIS DOCUMENT ARE ENTIRELY THOSE OF THE AUTHORS. NONE OF PT MNC KAPITAL INDONESIA TBK, PT MNC SEKURITAS OR ANY OTHER PERSON ACCEPTS ANY LIABILITY WHATSOEVER FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS DOCUMENT OR ITS CONTENTS OR OTHERWISE ARISING IN CONNECTION THEREWITH. THIS DOCUMENT HAS BEEN FURNISHED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON. BY ACCEPTING THIS DOCUMENT YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. INFORMATION IN THIS DOCUMENT MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED OR APPROVED BY PT MNC VISION NETWORKS TBK, ITS SHAREHOLDERS IN THE OFFERING. www.mncsekuritas.id MNC Sekuritas 1-500-899 [email protected] Page 2 Please see important disclaimer at the back of this report IPO Report | MNC Sekuritas Research Division Profil Perusahaan PT MNC Vision Networks Tbk (MVN) merupakan perusahaan yang bergerak dalam bisnis TV berbayar, fixed broadband/IPTV, dan layanan siaran konten digital yang berada The Best Pay TV and dibawah naungan MNC Group. Perseroan memiliki tiga unit usaha, yaitu: 1) PT MNC Sky Broadband Internet in Vision Tbk (MNC Vision/MSKY IJ) dengan market share sebesar 96% pada pasar Pay-TV Indonesia berbasis DTH; 2) PT MNC Kabel Mediakom (MNC Play) sebagai pemain ke-tiga terbesar di bidang fixed broadband/IPTV; 3) PT MNC OTT Network (MNC Now) yang bergerak pada layanan siaran konten digital. Adanya sinergi dengan Grup MNC sebagai grup media terbesar di Asia Tenggara menjadi salah satu keunggulan Perseroan. Berawal dari PT MNC Sky Vision Tbk (MNC Vision/ MSKY IJ) pada 1988 dengan branding “Indovision”, Perseroan berhasil memperluas jaringan dengan kepemilikan basis pelanggan sekitar 2,6 juta untuk IPTV/broadband dan direct to home (DTH) pada FY17 didukung oleh 101 kantor cabang dan lebih dari 2.000 tenaga sales yang tersebar di seluruh Indonesia. Exhibit 01. Struktur Perusahaan PT MNC Vision Networks Tbk (MVN) PT Global Mediacom Tbk 99,99% PT MNC Vision Networks 97,55% 99,99% 99,90% PT MNC Sky Vision Tbk PT MNC Kabel Mediakom PT MNC OTT Network DTH services Broadband and IPTV services OTT service provider • As a strong value-add for MNC Vision / • Provides DTH-based Pay TV services in • Provides high speed FTTH broadband and MNC Play subscribers to watch content Indonesia, covering the entire archipelago interactive IPTV services and entertainment anywhere anytime • Access to MNC Vision, MNC Play and rd • Captures 96.0% of DTH market share in • 3 largest broadband and IPTV operator in MNC content and features Indonesia four years since inception • Provides video on demand (“VOD”) services over the internet Access to 96% DTH S-band 1.5m More than Presence more than market for extensive homes 130 live and share with in 9 9,000 hours nationwide (1) passed and 80 catch-up (1) Cities of on-demand 2.4m subs coverage 262k subs(1) channels content 186 2.0m(2) Available on 15% 137 US$ 22 channels registered multiple subscriber channels with residential with 35 subs since platforms CAGR from 33 exclusive ARPU(4) exclusive inception in including 2010 to 2018 channels(3) channels(3) Feb 2018 Android, iOS Sumber: PT Global Mediacom Tbk (BMTR) per Nov-18 Exhibit 02. Sejarah Singkat dan Layanan Perusahaan 2018 Peluncuran OTT MVN 2017 Sinergi MNC Vision Dengan MNC Play 2014 Peluncuran MNC Play 2012 2006 IPO MSKY Menjadi PT MNC Sky Vision (MSKY) 1998 Peluncuran Indovision 1988 PT Malicak Nusa Semesta Berdiri Sumber: MVN, MNCS www.mncsekuritas.id MNC Sekuritas 1-500-899 [email protected] Page 3 Please see important disclaimer at the back of this report IPO Report | MNC Sekuritas Research Division Model Bisnis dan Strategi Perseroan memiliki lini bisnis yang terintegrasi end to end untuk memasarkan layanannya Pengembangan Bisnis melalui in-house distribution dan sales channel melalui 3 (tiga) entitas anak yaitu: 1) PT MNC Sky Vision Tbk (MNC Vision/MSKY IJ) yang bergerak dalam lini berbasis televisi berbayar direct to home (DTH); 2) PT MNC Kabel Mediakom (MNC Play) yang berfokus pada jasa Internet Protocol Television (IPTV) dan fixed broadband; 3) PT MNC OTT Network (MNC Now) yang memberikan layanan video on demand melalui jaringan internet.