PT MEDIA NUSANTARA CITRA TBK (“MNCN”) BUSINESS UPDATE Jakarta, Indonesia – 03 August 2020 Summary of Q2-2020 Results: PT Media Nusantara Citra Tbk (“MNCN” or “The Company”) posted a net profit increase of 6% YoY in Q2-2020, securing Rp674.9 billion in net profit compared to Rp634.9 billion in the previous year. Net profit margin also increased to 35% YoY in Q2-2020 as opposed to 27% in the same prior-year period. The strong Q2-2020 net profit was partly attributed by some gain in foreign exchange. Net Revenue The company booked net revenue of Rp1,951 billion in Q2-2020, a decline of 18% YoY from the previous year at Rp2,366 billion. This decline was attributed to the cancellation of some big events due to the pandemic COVID-19 including Euro Cup which was originally planned to take place in June 2020. Advertising Revenue Advertising revenue declined by 20% in Q2-2020 to Rp1,803 billion compared to Rp2,265 billion in Q2-2019, but digital ads posted a strong growth of 27% YoY to Rp210 billion from Rp165.8 billion in Q2-2019, despite a soft adex in Q2-2020. MNCN’s overall performance of ads revenue in Q2-2020 was relatively much better than the industry where the majority of the players experienced more than 30% decline in FTA ads revenue. The Company implemented various initiatives during the period, such as continuing production of leading drama programs which generate significant non-time consuming ads sales. Content Revenue The Company’s content revenue was recorded at Rp336.5 billion in Q2-2020, representing a decrease of 26% YoY from Rp452.9 billion in 2019 due to the smaller content production volume for the FTAs within the group. However, content revenue from third parties (shown as net content revenue after elimination) increased by 54% YoY to Rp113.8 billion in Q2-2020 from Rp73.7 billion in the same prior-year period. 1 | P a g e Direct Cost MNCN’s Q2-2020 direct cost decreased by 19% YoY to Rp670 billion from Rp831.9 billion in the same period last year. Aside from a lower production output in Q2-2020, MNCN continued to produce selected drama content on a day to day basis, expenses related to the production of drama have decreased significantly as a result of shifting the production site to its studio premises from previously leasing a compound to carry its production activities. EBITDA EBITDA for Q2-2020 declined by 17% YoY to Rp892.6 billion from Rp1,078 billion last year, which is lower than the decline in net revenue of 18%. G&A expense decreased from Rp455.6 billion in Q2-2019 to Rp388.5 billion in Q2-2020, representing a reduction of 15% YoY. However, EBITDA margin was maintained at the 46% level. Summary of H1-2020 Results: For H1-2020, MNCN outperformed with a very significant difference compared to the other players in the industry. Net income was down by 17% YoY in H1-2020 to Rp1,008 billion from Rp1,220 billion the same period last year. Excluding non-cash forex adjustment (loss/gain) in the corresponding year, net income was booked at Rp1,043 billion in H1-2020 from Rp1,143 billion in the same prior-year period, representing only a 9% YoY decrease with 26% net income margin. Net Revenue Net revenue in H1-2020 was Rp3,967 billion, representing a decrease of only 6.7% YoY from Rp4,252 billion in the same corresponding period last year. As explained earlier, due to the pandemic COVID-19, some of the big programs that are supposed to generate big revenues have been postponed. For instance, Euro Cup is postponed to June 2021. 2 | P a g e Advertising Revenue Advertising revenue in H1-2020 declined by 10% YoY to Rp3,616 billion from Rp4,033 billion with the breakdown: (i) Non-digital ads decreasing by 14% YoY to Rp3,207 billion from Rp3,708 billion and (ii) Digital ads increasing significantly by 26% to Rp409 billion in H2-2020 from Rp325.2 billion in H2-2019 due to a very strong results with RCTI+, social media monetization and other digital initiatives. Digital revenue in H1- 2020 surpassed its previous high of Rp372 billion in H2-2019. Content Revenue Content revenue in H1-2020 was down to Rp807.9 billion before elimination representing a decrease of 11% YoY from H1-2019. This was caused by the diminishing content production output for the group as a result of the partial restriction of the Company’s content production activity. Whereas, library licensing and production sales continued to show promising figures as net content revenue (after elimination) grew by 77% YoY from Rp164.5 billion to Rp291.8 billion in H1-2020. Direct Cost In line with the decrease in content production activity for the group, direct cost in H1- 2020 was down by 7% YoY to Rp1,381 billion from Rp1,488 billion last year. Meanwhile, gross profit declined by 7% to Rp2,479 billion in H1-2020 from Rp2,673 billion in the same prior-year period. EBITDA Due to some efficiency in G&A expenses, EBITDA only declined by 6% to Rp1,787 billion in H1-2020 from Rp1,909 billion last year, representing an EBITDA margin of 45%, the same level as in H1-2019. 3 | P a g e Business Update of MNCN: Upcoming Program in H2-2020 Given that the recovery of ad spend will take place in the second semester of 2020, MNCN has reserved its most important programming line-up consisting of special programs sponsorship nature, such as talent search, anniversary, awarding programs, and many more. Sponsorship based programs on average generate much higher revenues compared to regular programs on FTA. The following is a list of some upcoming programs for the Company in H2-2020: RCTI: Master Chef Indonesia, Indonesian Idol, Tik Tok Awards, Silet Awards, Indonesian Television Awards, Dahsyatnya Awards, Anugerah Musik Indonesia (AMI) Awards, and Youtube Awards. GTV: Various musical concerts, GTV Anniversary, and E-sports Star Indonesia MNCTV: Various musical concerts, KDI 2020, Fantastic Duo Indonesia, Anugerah Dangdut Indonesia, MNCTV Anniversary, Ambyar Awards, and Mom & Kids Awards. Early signs in July has demonstrated a strong indication that ad spend will likely recover in H2-2020, which is shown by numerous FMCG advertisers that have recommence their campaign on TV. The Company is set to capture a significant portion of their respective advertisement budget through the creation of special programs lined up in H2-2020. Rising Content Licensing Earnings MNCN has benefitted the most amid the growing necessities for subscription-based OTT platforms to ramp up their respective local VOD content to compete in Indonesia. In 2020, the Company has secured licensing deals to major media players, such as Disney and Netflix. With various foreign OTT players starting to assemble a formidable strategy and effort into capturing a significant market in Indonesia, MNCN foresees that its net content revenue will expand tremendously. 4 | P a g e RCTI+ Update RCTI+ is set to launch its UGC feature dedicated for talent search competition and games aggregator on the apps in August 2020. As of June 2020, RCTI+ has gained over 10 million monthly active users (MAU), with an average watching time for live and VOD content reached 86 minutes. The Company believes that the addition of the 2 features mentioned above will further increase the apps traffic and user engagement. QRIS on FTA Update Launched in May 2020, QRIS on FTA has been received well by advertisers to date. In Q2-2020 alone, there were 15 notable brands that have advertised with QRIS embedded in their advertisement. Moreover, QRIS advertisement lets the Company to attract a wider range of advertisers’ profile and sees that more advertisers are planning to utilize two 30” spots for a QRIS advertisement to be effective, which will be a huge boost for the Company’s TV ads revenue. Social Media Update MNCN’s social media presence is the biggest in Indonesia, as it attracts an average of 2 billion views every month and as of June 2020, its subscribers base on YouTube amounted to more than 90 million subscribers. Its MCN operation also grew substantially by generating 3.7 billion views and close to 40 million subscribers since its inception in August 2019. Furthermore, the Company dealt with Facebook at the end of Q2-2020 to form the same arrangement as YouTube, by supplying clips from MNCN content library. With a minimum guarantee in place, digital ads contribution from social media monetization through Facebook will be established in Q3-2020. Comments from Hary Tanoesoedibjo, Group Chairman of MNC Group: “I am motivated by the results we have generated in Q2-2020. Despite experiencing negative growth for the semester, I am very confident that we have moved past the most turbulent period for media companies in terms of advertising spending during H1-2020. While the economic impact of the pandemic is likely to be felt long after it subsides, the behavior of our people will shift as well, which means more people will be watching TV, as well as their viewing time per day. For H2-2020, I am sure that the Company will do much better than we did in the first semester." 5 | P a g e Table 1. Summary of Key Financial Performance H1-2020 Income Statements 1H-20/19 Variance Q2-20/19 Variance In IDR mio 1H-2020 1H-2019 YoY Q2-2020 Q2-2019 QoQ Revenues 3.966.928 4.251.970 -6,7% 1.951.134 2.365.615 -18% Advertisement 3.615.774 4.032.745 -10% 1.803.433 2.264.790 -20% Digital 409.080 325.215 26% 209.828 165.845 27% Non-digital 3.206.694 3.707.530 -14% 1.593.605 2.098.945 -24% Content 807.924 912.898 -11% 336.479 452.944 -26% Others 59.391 54.751 8% 33.901 27.140 25% (Elimination) (516.161) (748.424) (222.679) (379.259) Direct Cost *) 1.381.244 1.487.583 -7% 670.001 831.856 -19% Depreciation and amortization 107.172 91.412 17% 49.350 46.086 7% Gross profit 2.478.512 2.672.975 -7% 1.231.783 1.487.673 -17% Gross profit margin 62% 63% 63% 63% General & Administrative expense *) 798.307 855.397 -7% 388.517 455.556 -15% Depreciation and amortization 146.239 127.045 15% 87.980 78.571 12% EBITDA 1.787.377 1.908.990 -6% 892.616 1.078.203 -17% EBITDA Margin 45% 45% 46% 46% Net Income 1.007.637 1.219.864 -17% 674.891 634.895 6% Net income margin 25% 29% 35% 27% *) : excluding depreciation and amortization For more information, please contact: Investor Relations: PT Media Nusantara Citra Tbk.