MNC Media PT Global Mediacom Tbk - Corporate Update January 2020
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Listed and traded on the Indonesia Stock Exchange
STOCK CODE: BMTR
MNCN
IPTV
MSKY
MNC Media
PT Global Mediacom Tbk.
Corporate Update
January 2020
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2
Section 1 MNC Media Corporate Structure
MNC Media Corporate Structure
Global Mediacom Tbk
Content Based Media MNC Vision Networks Tbk Online Media
and Advertising Subscription Based Media
Media Nusantara Citra Tbk DTH Post-paid Pay TV DTH Pre-paid Pay TV Broadband and IPTV
OTT Service Provider –
TV Anywhere
*excluding exercise of warrant
4
Key Investment Highlights
• Indonesia is the fourth most populous country in the world, with 267m inhabitants and a rapidly emerging
middle class.
• Global Mediacom operates in two of most promising market in Indonesia:
Favorable
- Significant upside potential in the media advertising market given that Indonesia’s advertising spending to
Macro
GDP ratio of 0.2% is one of lowest in Asia.
Fundamental - Substantial headroom for continuing rapid growth in the Pay TV and high speed broadband market, given
that Indonesia has the lowest penetration of Pay TV (13.3%) and fixed broadband (9.8%) of all major
economies in Asia.
Global Mediacom is the leader in both content & advertising based media and subscription based media
business:
• Four national FTA with the largest audience share of 40% and adspend share of 45%.
• Largest content producer with 23K hours/year in production of short, mid and long content format.
Market
• Market leading position in DTH with 96% market share and a subscriber base of c. 2.6m (combined DTH and
Leadership IPTV). The only player with nationwide DTH coverage, giving access to a wider potential customer across
Indonesia.
• Rapid growth of broadband / IPTV subscriber base as the company is one of the first that launches FTTH
infrastructure.
Global Mediacom through its key subsidiaries offer products unmatched by their competitors:
• Top content products and portfolio that consistently generate highest audience share.
• Access to the largest content library in Indonesia of more than 300,000 hours.
Unrivaled
• Largest talent management with nearly 400 prominent and well-known talents.
product offering • The fastest residential broadband / IPTV network, being the only provider operating 100% on FTTH.
• Strongest content proposition, with access to 7 of the top 20 most watched Pay TV channels and non-
exclusive access to the remaining 13 (total of 185 channels of which 35 are exclusive).
5
Key Investment Highlights (cont’d)
• Global Mediacom is led by an experienced management team with a strong track record of achieving both
Superb key operational as well as investment management excellence.
management • The company’s key subsidiaries, MNCN and IPTV are led by a seasoned management with proven
team capabilities that consistently delivers quality execution, particularly within FTA/advertising sector as well as
Pay TV/High speed broadband business.
BMTR:
• Revenue Rp 9,672 bn, +11% YoY
• EBITDA Rp 3,976 bn, +14% YoY
• Net Income Rp 913 bn, +142% YoY
MNCN:
9M-19 Financial • Revenue Rp 6,271 bn, +13% YoY
Performance • EBITDA Rp 2,798 bn, +20% YoY
• Net Income Rp 1,776 bn, +63% YoY
IPTV:
• Revenue Rp 2,527 bn, +5% YoY
• EBITDA Rp 1,097 bn, +8% YoY
• Net Income Rp 157 bn vs Net loss of Rp 70 bn YoY
6
Section 2 MNCN Updates
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 20.1billion with 42 million subs
by the end of August 2019.
1. GDP hit more than $1trillion for 2. Large population of 267 million
the first time in 2018 with annual growth people, growing by 3-4 million people every 10. Owning the largest sites called Okezone (#1 above Google #2) and Sindonews
rate between 5-6%. year for the next 15 years. (#6) based on Alexa measurement.
• Okezone has more than 19 million UV daily
3. Significant upside potential for adspend growth since adspend to GDP ratio • Okezone is ranked #27 globally.
is only 0.2%, one of the lowest in Asia.
11. Strong growth in digital advertising revenue
4. Adspend on National FTA and digital will grow from 80% to close to 90% of • Derived from mobile apps, general/news portal, YouTube revenue share
the national adspend in the next 3-4 years. • Excluding future digital revenue from RCTI+ and MCN.
5. Four National FTA
with the largest audience share of 40% and adspend share of 45%.
• 40% audience shares translate to more than 100 million viewers daily, the largest in the 12. Strong growth in Non Time
country even if it’s compared to any social media platform. Consuming Ads (NTC Ads) in the 14. Fast growing digital and
• Launched its streaming (OTT) service called RCTI+. form of built in, virtual and squeeze content revenue:
frame as well as equity link. • In 9M 2019, growing by 49% YOY,
contributing 25% of the total
6. The Largest Content Production revenue.
of 23K hours yearly in long, mid and short formats: • Projected to contribute more
• 40% market share in drama or close to 5,000 hours of drama production yearly. than 40% in 2022 and more than
• 80%+ market share in talent search & animation. 50% in 2024.
13. 9M 2019 financial
performance:
• YoY revenue to $442mn, up 12% At 15x P/E multiple, stock price
7. The Largest Library 8. The Largest Talent Management • YoY EBITDA to $197mn, up 19% is equivalent to Rp2,500.
with more than 300K hours, consisting with close to 400 talents under management with • YoY profit to $125mn, up 61%
of more than 60% non news. 5 + 5 years option to extend.
8
Macro Drivers Support Industry Growth
Population & Real GDP (US$) (2018) * What are the macro drivers?
* In Millions • A large & young population, 226mn
300 1.148.253 people below age of 54; growing by 3
250 to 4 Million people every year for the
200 265 323.680 next 15 years.
150 107 186.326 • A rising middle class group will grow
95 437.515 383.304 the advertising expenditure in line
100 319.915
with GDP growth
50 69 32 6 • A stronger growth will be driven by
0 more robust private investment
Indonesia Philippines Vietnam Thailand Malaysia Singapore activities and acceleration of
Population US$ Real GDP infrastructure development
Indonesia Growth of Real GDP (%) A Young Population (2018)
5,5 5,5 5,5 5,5
43%
5,3
5,1 27%
5 5
4,9 17%
8% 6%
2014 2015 2016 2017 2018 2019 2020 2021 2022
Source : Indonesian bureau of statistic 2019 report 0 - 14 15 - 24 25 - 54 55 - 64 65+
9
The Largest Fully Integrated Media Company in Southeast Asia
PUBLIC
64% 36%
FREE-TO-AIR TV CONTENT DIGITAL
ENTERTAINMENT PRODUCTION (Short – Mid – Long Form) • RCTI +
• Digital content
(original content,
library)
• MCN
CONTENT LIBRARY TALENT MANAGEMENT • News portal
Entertainment FTA focusing
on family audience • Digital broadcast
• Radio Aggregator
INFORMATION & SPORTS
Apps
Content library contains The biggest talent management • User Generated
more than 300,000 hours and company in Indonesia with more Content (UGC)
Largest news TV and provide increasing by more than than 380 talents under exclusive
news programs to the Group’s 23,000 hours per year contract
3 entertainment FTA
10Indonesia Advertising Market Share
• 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.
2018 Indonesia Advertising – By Media (in Rp Mill)
Radio, 2%
Print, 16% 40.000.000
OOH; 2% 35.000.000
30.000.000
Internet, TV, 64%
16% 25.000.000
20.000.000
2022
Print;
15.000.000
Radio;
10% 1%
OOH; 10.000.000
2%
5.000.000
Internet, -
25% TV, 62%
2015 2016 2017 2018 2019 2020 2021 2022
TV Internet Print & Related Other
Source : MPA 2018 report, adjusted
11The Largest Audience Share & FTA TV Advertising Market Share
MNCN Audience Share 2008 – 2019*
44,8
37,2
39,4 38,4 39,0
35,3 36,7 36,4 35,1
29,1 • MNCN continued to produce top drama series
and successfully fulfilled demand on high
quality Indonesian culture-based
entertainment
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* Source : Nielsen Prime Time FY-2019
Indonesia FTA TV Advertising Market Share
43 43 45
39 40 • MNC Group dominates Advertising market
37 share amongst all FTA TV Stations in the
28 28 nation
26 24 26 24
18 • Content is the only way to capture audience
15 17 15
14 14 14 12 12 13 share and monetize advertising dollars
10 10
4 4 4 4 4 4 • MNC sells different forms of advertising from
0 0 1 1 1 0 filler TVC, built-in, virtual ads, mobile ads
and other creative ads
2014 2015 2016 2017 2018 9M-2019
MNC Group Emtek Group Trans Corp Viva Group Metro TVRI
12TV Advertising Revenue
• Conventional TVC (15” and 30”) during
commercial break
Advertising
• Creative ads/ Non Time Consuming ads
Revenue Stream
(Built-in, Virtual Ads, Squeeze Frame,
etc)
Conventional TVC Build-In Advertising
• Equity Link (Air time and Content
Library)
• Localized RTX* & Geo-tagging TVC*
• Digital Ads : Digital Broadcast, Social
Media (including original content),
Online Portal, UGC, MCN, RCTI+ Virtual Advertising on Drama Series (TOP) Squeezed Frame Advertising
*will be launched soon
13Content Revenue
CONTENT PRODUCTION CONTENT LIBRARY LICENSING
(group & non-group) (FTA, DTH Pay TV, IPTV, Mobile/Streaming, OTT)
Short, Mid, and Long Form
• Content produced in-house include Drama, Talent • Produces around 23,000 hours of content annually.
Search, Animation, Sitcom, Movie, Reality, • Owns more than 300,000 hours of content library with
Infotainment, Variety, Talk Show, News. breakdown of 60% non News and 40% News content.
Drama Series* 41%
Talent Search* more than 80%
80% Infotainment 32%
LOCAL
CONTENT
Reality Program 33%
95% IN-HOUSE
PRODUCE Local Animation more than 80%
• Generating highest revenue per one hour broadcast
14The Largest Content Producer and Library Owner
Content
DRAMA TALENT SEARCH ANIMATION SITCOM REALITY INFOTAINMENT TALK SHOW NEWS VARIETY
15The Best Talent Search Program
16Drama Series Production – Indonesia Market Share
Cakrawala
3%
Others
Tobali
5%
Verona Pictures
6%
41%
Mega Kreasi
13%
Sinemart
24%
Source : Actual On-Air, internal research 8M-2019
MNC Pictures Sinemart Mega Kreasi Verona Pictures Tobali Cakrawala Others
17Star Media Nusantara: Talent Management
• The biggest talent management company in Indonesia with more than 380 talents with various
background under exclusive contract (5 years + 5 years).
• The Company manages national talent to perform in TV shows (group or non group), radios, off
air events and OOH/TV commercial.
• There is a revenue split between talent and the Company for all bookings, including
endorsements on their respective social media platforms.
Singing
Competition
Christoper Edgar Sharla Martiza Kim Kimberly Dahlia Yogie Mahesya
Citra Scholastika Giselle Nowella
2016 2017 2017 2015 2015 2015
2010 2008 2014
B Force
2017
Christoper Sharon Navis Aditya Indah Nevertari Trio Wijaya Andmesh
Ajeng Astiani Aldy Saputra Angela July 2014 2016 Kamaleng
Laurensius 2017 2017 Soul Sisters
2015 2015 2015 2017
2016 2017
Chef / Cooking
Contest
Brian Luvita Deny Afif Winner Zidan Patrick
2013 2015 2015 2014 2014 2014
Other Talent
Search
Oge Arthemus – Master Limbad – Bow Vernon Boy WIlliam Libra Akila Okky Julian
Maria HarfantiNatasha Mannuela H Achintya Nilsen 2013
Season 1, 2009 Season 2, 2009 Season 5, 2012 2010 2011
2015 2016 2017
Ayu Ting Ting Lolita Agustine Dede
2010 2010 2014
18Digital Mobile/ Online Advertising Revenue
• Digital Broadcast
• Social Media (Library & original content, etc)
• Library/channel licensing to digital platform
• Online portal, UGC, MCN
• RCTI+
19Digital Broadcast
Second Screen Quiz Interactive Second Screen Activity Second Screen Live Chat
Digital quiz interactive where user can answer al Brand activation on RCTI Mobile where users can Users can access live streaming on RCTI
the questions on TV via RCTI Mobile. The send their comments and upload their photos Mobile as well as having interactive with
questions will be appeared in a form of template which inline with brand campaign another user using chat feature
with 110 sec. The questions consist of product
knowledge from brand and program
Pre Roll
Banner Random
TVC with 15 sec
A small picture on
duration. Pre roll
top of page with
will appear before
landing page
Native Ads the video content
Bigger than
banner, native ads
are in the middle
of the page. Brand
can put their
landing page on
native ads
20Most watched Indonesia YouTube content
comes from our short clips drama series
Source of Revenue from Youtube
1
21Number One YouTube TV Views & Subscribers in Indonesia
MNC Media vs Competitors MNC Media vs Competitors
VIEWS (IN BILLION) Subscribers
METRO RTV
VIVA GROUP 3.647.877
23 12.055.259
2.009.197
KOMPAS
12.097.094
MNC GROUP
11.7 61.090.712
10.8
EMTK GROUP
8.9
21.009.380
3.2 3
NET
24.610.580
TRANS CORP
28.265.219
MNC TRANS NET EMTK KOMPAS VIVA
GROUP CORP GROUP GROUP
*Including Twitter, FB, IG, the total subscribers reach over 92 million, the
Source : MNC Research, as per November 2019
largest in South East Asia
MNCN Nationwide Youtube 4.91% 2.26% 2.86%
market share:
Views Subscribers Video Uploads
Note: Data for Youtube Indonesia 22Maximize Brand’s Presence Through Engaging
WebSeries Ads
Source of Revenue from Youtube
2
23Star Hits – Leading Digital Network
MCN (August - December): Source of Revenue from Youtube
3
• 21.6mn subscribers
• 2.4bn views • Star Hits is a digital network that develops content creators, talent or influencers, to cooperate
with the brand and to create the ecosystem that are connected in the content.
MCN + Non – MCN (2019) • Owns various channels under star hits family brand, which focuses on various different genres.
• 61.1mn subscribers • Currently, Star Hits also coordinates all of MNC Group’s channels in all social media.
• 24.1bn views • Star Hits has received MCN (Multi-Channel Network) license from Youtube in July 2019.
24MNC Group “News Portal” ranked #1 and #6 in Indonesia
ALEXA RANKS
Top Indonesian Sites
1. Okezone.com 11. Blogspot.com
2. Google.com 12. Google.co.id
3. Tribunnews.com 13. Idntimes.com
4. Youtube.com 14. Kumparan.com
5. Detik.com 15. Yahoo.com
6. Sindonews.com 16. Suara.com
7. Kompas.com 17. Kaskus.co.id
8. Liputan6.com 18. Kapanlagi.com
19. CNNindonesia.com *Update 30 August 2019
9. Bukalapak.com
10. Grid.id 20. Alodokter.com
Note : For News portal, Okezone.com is ranked #1 (20mn daily UV) and Sindonews.com #4
25Welcome to RCTI+ Mobile Apps
• A spectacular extension of RCTI, MNCTV, GTV, and iNews FTA TV which
is available for free via Apps (iOS & Android).
• MNC is digitally all in!
Excellent Live • Single & Multi Camera Views for Streaming
Streaming • Catch up TV
• FTA Programs - Current and Library
• Extended Content –Rejuvenated Library Content, Fresh
Extended Content, and FTA Unaired Content (bloopers and
Creative behind the scene)
Content
• Creative Contents: Quiz, Reward system, Original short &
mid form content, Audition, News clips, Radio, etc
• Content Partners - (SMN & Third Party Partners)
26MNC Integrated Studios Facilities
27Section 3 IPTV Updates
Macro Drivers Support Industry Growth
Population (in millions) • A large & young population, 226mn people
below age of 54; growing by 3 to 4 Million
• The world fourth most populous nation.
• GDP per capita < $4.000. people every year for the next 15 years.
• Real GDP growth of 5.5% per annum.
• Indonesia will be the second largest Pay TV
growth in the region after Philippines, with
annual growth of 6%.
• Indonesia will be the third largest fixed
broadband subscription growth in terms of
revenue at 11% (CAGR 2018-2023) in Asia
Pacific.
Pay TV Penetration - % (2019) Fixed Broadband Penetration - % (2019)
29The Most Integrated Subscription Platform
with Content Superiority
PUBLIC
PT MNC Vision Networks Tbk (IPTV)
90%* 10%*
97.55% 80% 99.99% 99.90%
PT MNC Sky Vision Tbk PT Digital Vision Nusantara PT MNC Kabel Mediakom PT MNC OTT Network
DTH post-paid Pay TV DTH pre-paid Pay TV Broadband and IPTV OTT service provider – TV Anywhere
• Captures mass market segment
• Provides DTH based post-paid Pay • Provides high speed FTTH
with low-priced prepaid Pay TV • TV anywhere for MNC Vision,
TV services in Indonesia, targeting broadband and interactive IPTV
service. MNC Play, and K-Vision subs.
mid – high market segment. services.
• K-Vision controls 3.000+ • MNC Now has over 25 mio MAU.
• Over 90% market share with 2.4m • 3rd largest broadband and IPTV
dealership across the nation.
subscribers. operator in four years since • Provides various features, such as
• DTH KU-Band for cost efficient inception. linear channel viewing, catch up
• DTH S-band (2.520 – 2.670 Ghz) for
services. TV, library, VOD, and many more.
extensive nationwide coverage. • Presence in 9 Cities.
• Acquires 5.000 new subscribers on • Focus on original content, both
• Hidden treasure: 5G and LTE • 1.5 mio home pass with close to
a daily basis and currently sitting short and mid form.
spectrum. 300.000 subs.
with 1 mio subscribers.
*excluding exercise of warrant
30MNC Vision - Quality Focused And Continuous Cost Efficiency
• MNC Vision provides DTH-based Pay TV services in Indonesia with 2.4 mio subscribers, which represents
90% market share. Capturing massive market opportunity in an archipelago.
• Subscriber’s growth will be focused on reaching broader segments in tier 2 and tier 3 cities (70% of total
households in Indonesia) and LCO (local cable operator) acquisitions to expand DTH market share.
• Monetization of LCO through content licensing.
• Hidden Treasure: Monetization of 5G and LTE Spectrum (150 Mhz).
Revamping MNC Vision Business Model - Sale of STB/Equipment
1. New customer acquisition to purchase STB/equipment for a more efficient operational expenditure.
2. Reduce costs of STB/equipment, viewing card/CAS, outdoor unit, and low noise block (LNB) by at least
25%, which enables the Company to sell the equipment for $31/set, from $44/set.
3. This model will decrease overhead cost, such as sales, technical, and other related expenses.
4. Sale of STB leads to higher revenue and healthier cash flow.
5. Starting November, MVN has transitioned into selling its equipment to customers and will be fully
implemented within 6 months.
6. Acquisition target: 2000 new subscribers per day – upon the full implementation of the new model.
31K Vision – Pay TV Platform for the Mass Market
Customer Acquisition 2019 (in thousands) 213
August: Acquired by MVN • Prepaid Pay TV using DTH KU-
161 155 Band for cost efficient services,
135 which captures mass market in
107,8 Indonesia.
82,2
45,3 • Acquires 5.000+ new subscribers
35,6 on a daily basis.
8,7 7,5 7,3 7,3
• Targeting at least 30% of new STB
users to consistently subscribe
prepaid vouchers.
Top Up Voucher Purchase 2019 (in million)
August: Acquired by MVN
• Source of revenue:
14.100
12.600 • Sales of decoder/set-top box
11.400
10.150 10.000 • Top up voucher
8.004
7.181 6.746 • Advertising
5.937 6.610 6.469 5.357
• 20+ mio target homes that can
potentially be a subscriber.
32MNC Play - Aggressive Coverage Expansion & Extensive Growth
• MNC Play is the 3rd largest broadband and IPTV operator with close to 1.5 million home pass and 265.000
subscribers since its inception in 2015.
• Secured various partnership with neutral network providers to expand its home pass network that lower
capex and opex requirement in the future and allows the Company to focus on the delivery of its services
(internet & IPTV)
• Monetizing existing home pass network through sale & lease (business trust structure).
• MNC Play to introduce Android TV OTT service in 2019 – riding other broadband network providers.
Subs & HP Growth 2015 - 2018
in thousands (000)
400 1600
350 1400
300 1200
250 1000
200 800
MNC Play has secured a partnership with
150 600 ICON+, which opens up new opportunities to
265 penetrate PLN’s customer base of 67 million
100 400 homes.
175
50 115 200 This will expedite MNC Play’s future growth,
57 both in terms of number of subscribers and
0 0 home pass expansion.
2015 2016 2017 2018
Subs HP 33MNC Now – TV Anywhere, Anytime
• TV anywhere as an value-added service for MNC Vision & K-Vision (DTH) and MNC Play (IPTV) subscribers.
• The OTT platform comprise of more than 130 live and 80 catch-up channels, with access to more than 9.000 hours of on-
demand content. Moving forward, MNC Now will focus on original content/series, both short and mid form.
• MNC Now today has over 25 mio MAU.
• An AVOD business model to gain maximum traffic before monetizing through revenue share with third party content
providers through SVOD model.
Monthly Active Users – MAU (In millions)
75
50
20
DEC-2019 JUN-2020 DEC-2020
34MNC Channels: Largest in in-house production
and number of channels in Indonesia
FTA IN-HOUSE PRODUCTION
(available exclusively on MVN’s (hours)
Pay TV Platforms)
No Channel Total
1 MNC News 29.878,97
2 Music Channel 22.313,00
3 Lifestyle & Fashion 15.854,25
4 Hidayah 6.957,50
5 Infotainment 3.416,50
6 Kids Channel 2.955,17
7 Travel & Homes 5.033,68
8 Soccer Channel 2.417,00
9 MNC Sport 2.055,50
10 Auto Gadget 2.224,50
Total Hours 93.106,07
Data as of August 2019
MVN produces and operates 16 pay channels from various genres for
Pay TV/IPTV/OTT viewers.
35MNC Channels: Most Watched Pay TV channels in Indonesia
Number #1 Indonesia Pay TV Market position by 25.90% market share
(FTA Channels generate highest audiance share)
Rank Channel Share (%) Rank Channel Share (%) Rank Channel Share (%) The Top 10 Pay TV
1 RCTI Pay 11.59 26 FOX ACTION MOVIES 0.72 51 ASIAN FOOD CHANNEL 0.17 channels in Indonesia.
2 TRANS Pay 10.65 27 NATIONAL GEOGRAPHIC 0.62 52 MNC SHOP TRENDY 0.17
3 TRANS7 Pay 8.36 28 S-ONE 0.59 53 DMAX 0.17 Rank Channel Share (%)
4 SCTV Pay 7.98 29 NICKELODEON 0.53 54 COMEDY CHANNEL 0.16 1 MNC Group 25.90
5 IVM Pay 7.21 30 DRAMA CHANNEL 0.49 55 MNC FASHION 0.15 2 TRANS Group 19.01
6 TVONE Pay 7.07 31 CELESTIAL MOVIES 0.44 56 FOOD AND TRAVEL 0.15 3 SCM Group 15.19
7 ANTV Pay 6.64 32 MOVIE CHANNEL 0.42 57 THRILL 0.12 4 VIVA Group 13.71
8 METRO Pay 5.07 33 FOX CHANNEL 0.41 58 FOX LIFE 0.12 5 FOX & Disney 8.20
6 Warner 5.74
9 GTV Pay 4.33 34 CCM 0.38 59 DISCOVERY CHANNEL 0.12
7 METRO 5.07
10 MNCTV Pay 3.63 35 BEIN SPORTS 1 0.36 60 DIVA 0.11 8 Sony 1.54
11 DISNEY JUNIOR 1.49 36 BERITA SATU 0.31 61 EXTREME CHANNEL 0.11 9 VIACOM 1.38
12 CARTOON NETWORK 1.44 37 HEALTH AND BEAUTY 0.30 62 FOX SPORTS 0.1 10 TVRI 0.92
13 FOX FAMILY MOVIES 1.34 38 INFOTAINMENT 0.28 63 SOCCER CHANNEL 0.10
Source : Nielsen
14 HBO 1.33 39 Z BIOSKOP 0.28 64 ANIMAL PLANET 0.10
15 FOX MOVIES 1.20 40 TOONAMI 0.28 65 GAMES CHANNEL 0.09
16 CNN INDONESIA 1.15 41 HBO HITS 0.27 66 AUTO AND GADGET 0.09
17 MNC ENTERTAIMENT 1.01 42 FOX SPORTS 2 0.27 67 PREMIERE 0.08
18 INEWS Pay 0.96 43 HBO FAMILY 0.25 68 GEM 0.08
19 TVRI1 Pay 0.92 44 MNC LIFESTYLE 0.25 69 HOME AND LIVING 0.08
20 NICK JUNIOR 0.85 45 KIDS CHANEL 0.24 70 ANIMAX 0.07
21 CINEMAX 0.82 46 FOX CRIME 0.22 71 IDX CHANNEL 0.06
22 MNC NEWS 0.82 47 MUSIC CHANNEL 0.22 72 CHANNEL V 0.06
23 BABY TV 0.82 48 HIDAYAH 0.22 73 FX 0.02
24 DISNEY CHANNEL 0.80 49 MNC SPORTS 0.21 74 NGC WILD 0.01
25 AXN 0.80 50 HBO SIGNATURE 0.2 75 TRAVEL LIVING CHANNEL0.01 36Creation of MVN original content portfolio
Creative Content
Long Form
NOW Original RCTI/MNCTV/GTVS MNC VOD Library MVN Original
Short (5-8 mins) hort Clips (3- (30-60 mins) Productions
and mid (10-20 5 mins) (30 min series)
mins) Web Series Dramas
Talent show Drama
Highlights
Reality show Talent show
Segment
Drama Bloopers Entertainment
Comedy sketch Behind the scenes Lifestyle
Lifestyle Interviews Kids
37Target Acquisition
38Key Commercial Terms
Target Company PT Link Net Tbk (LINK)
Expected Closing Date End of March 2020
I. Asia Link Dewa (CVC)
II. PT First Media Tbk (KBLV) – Lippo Group
Seller
*) Total shares: 63.75%
Buyer PT MNC Vision Networks Tbk (IPTV) or its subsidiary
Price Rp 5,400/share implying 2019 EV/EBITDA of 6.7x
I. Tranch 1 : 38.25% - upon closing
Term of Payment
II. Tranch 2 : 25.5% - one year after closing
39Synergy & Cost Savings from acquisition
Revenues Synergy Cost Savings
1. Additional revenue from content. 1. Saving of content cost by 1% to 3%.
2. Additional revenue from advertising sales. 2. Gradual elimination of marketing expenses.
3. Additional revenue from overlapping network. 3. Savings of bandwidth cost.
4. Additional revenue from OTT SVOD/AVOD. 4. Savings of Opex (G&A and salary).
5. Savings of programming cost.
6. Savings of equipment cost.
Post Acquisition Strategy
1. MVN will possess ± 3.7 million home pass (post – acquisition) and plans to monetize the network.
2. For new areas, MVN will lease its network from third parties.
3. This method will significantly reduce MVN Capex and Opex in the future.
Formation of Business Trust
Standard pricing • Transfer of home pass to a business trust
Sale : Rp 3 mio per home pass (sale and lease back).
Lease back : Rp 135 k per subscriber/month • Listing business trust to gain proceeds.
Note: Potential revision to the government regulation (PP no. 52/53) for open network
access (Telkom networks) to all service providers 40Consolidated Projected P/L with Link Net Acquisition
(in
In Bio
Rp Rp)
billion
MVN
Description 2018A 2019P 2020P 2021P 2022P 2023P 2024P 2025P
Revenue (MVN + Link Net pre-synergy) 3.227 3.910 7.709 9.698 10.642 11.723 12.974 14.479
Revenue Growth 21% 97% 26% 10% 10% 11% 12%
Additional Revenue due to synergy - - 139 490 840 1.226 1.767 2.156
Total Revenue (MVN + Link Net post-synergy) 3.227 3.910 7.847 10.187 11.482 12.949 14.741 16.636
Revenue Growth 21% 101% 30% 13% 13% 14% 13%
EBITDA (MVN + Link Net pre-synergy) 1.356 1.715 4.033 5.236 5.903 6.653 7.485 8.501
EBITDA Ma rgi n 42% 44% 52% 54% 55% 57% 58% 59%
EBITDA Growth 135% 30% 13% 13% 13% 14%
Revenue + Cost Saving due to synergy - - 201 567 945 1.372 1.951 2.399
EBITDA (MVN + Link Net post-synergy) 1.356 1.715 4.235 5.804 6.847 8.025 9.436 10.900
EBITDA Ma rgi n 42% 44% 54% 57% 60% 62% 64% 66%
EBITDA Growth 147% 37% 18% 17% 18% 16%
Net Income (MVN + Link Net pre-synergy) (47) 321 1.129 1.483 1.789 2.070 3.312 3.936
Net Income Ma rgi n -1% 8% 15% 15% 17% 18% 26% 27%
Net Income Growth -784% 251% 31% 21% 16% 60% 19%
Revenue + Nett Cost Saving post-synergy - - 132 342 569 822 1.139 1.392
Net Income (MVN + Link Net post-synergy) (47) 321 1.261 1.825 2.357 2.893 4.451 5.327
Net Income Ma rgi n -1% 8% 16% 18% 21% 22% 30% 32%
Net Income Growth 292% 45% 29% 23% 54% 20%
Notes:
1. Link Net is consolidated in April 2020
41
2. 63% acquisition of Link NetBreakdown of synergy and cost savings
In (in
RpBio Rp)
billion
Description 2020 2021 2022 2023 2024 2025
Additional revenue:
FTA, MNC channels, library and original production 31 113 224 358 535 710
Advertising sales 39 109 147 192 329 373
Relocation of overlapping network 68 232 423 614 805 901
OTT SVOD/AVOD - 35 46 62 97 174
Total 139 490 840 1.226 1.767 2.156
Cost saving:
MVN:
Content Cost 12 12 19 26 28 41
MKM:
Marketing expense 19 18 15 19 24 31
Bandwith cost 8 10 11 14 16 16
Operating expense (GnA & Salary) 24 38 59 87 116 153
Total 63 78 105 146 184 242
Total Add. Revenue & Cost saving 201 567 945 1.372 1.951 2.399
42Section 5 Financial Update Global Mediacom
Global Mediacom 9M-2019 Financial Results
Consolidated Income Statement Actual Variance Aktual Variance
(In Million Rupiah) 9M-2019 9M-2018 YoY 3Q-2019 3Q-2018 YoY
Revenues 9.671.767 8.685.992 11% 3.310.591 3.006.995 10%
Advertising (Digital + Non Digital) 6.036.006 5.360.684 13% 2.003.261 1.817.074 10%
Digital 502.995 106.825 371% 177.780 29.199 509%
Non Digital Advertising 5.533.011 5.253.859 5% 1.825.481 1.787.875 2%
Content 1.292.132 1.095.447 18% 379.234 334.544 13%
FTA and Content 7.328.138 6.456.131 14% 2.382.495 2.151.618 11%
Pay TV and Internet Broadband 2.580.449 2.404.583 7% 1.010.784 868.660 16%
Others 1.062.678 1.121.562 -5% 375.404 385.329 -3%
(Elimination) (1.299.498) (1.296.284) 0% (458.092) (398.612) 15%
Direct Cost *) 4.169.540 3.730.282 12% 1.417.296 1.207.413 17%
Depr. & amort. In Direct Cost 962.775 771.893 25% 318.303 261.319 22%
Gross Profit 4.539.452 4.183.817 9% 1.574.992 1.538.263 2%
Gross Profit Margin 47% 48% 48% 51%
General and Administrative Expenses *) 1.525.933 1.454.206 5% 451.338 459.050 -2%
Depr. & amortization 210.972 356.717 -41% 68.999 110.005 -37%
EBITDA 3.976.294 3.501.505 14% 1.441.957 1.340.533 8%
EBITDA margin 41% 40% 44% 45%
Net Income 913.233 387.857 135% 315.885 140.750 124%
Net Income Margin 9% 4% 10% 5%
*) excluding depreciation and amortizationSection 6 New Media
ONLINE MEDIA – EXCITING OPPORTUNITIES
Letang (www.joymeng.com) a fast growing mobile games company in
China.
Okezone.com is an online portal of news and entertainment focusing on
Indonesian readers both in the homeland and those living abroad.
Currently www.okezone.com receives more than 3 mio unique daily
visitors.
MNC Shop, Joint Venture with GS Home Shopping No.1 Home Shopping
Channels. The first 24 hours integrated TV and online shopping service in
Indonesia.
46Very Excited About Mobile Games and Mobile App in China
Bonnie Bears Armor Heroes Fu Mu Bang App
Boonie Bear and Armor Heroes achieved more than 320 million download since early 2014
Fu Mu Bang, parenting activities application with high growth momentum have over 2 million subscribers at end of 2017
47Thank You
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