4 th Quarter FY19 Results 26 March 2019
Disclaimer This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhad’s (“Astro”) financial condition, results of operations and business, and management’s strategy, plans and objectives for Astro. These statements include, without limitation, those that express forecasts, expectations and projections such as forecasts, expectations and projections in relation to new products and services, revenue, profit, cash flow, operational metrics etc. These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Astro’s control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that Astro operates in a competitive environment that is subject to rapid change, the effects of laws and government regulation upon Astro’s activities, its reliance on technology which is subject to risk of failure, change and development, the fact that Astro is reliant on encryption and other technologies to restrict unauthorised access to its services, failure of key suppliers, risks inherent in the implementation of large-scale capital expenditure projects, and the fact that Astro relies on intellectual property and proprietary rights which may not be adequately protected under current laws or which may be subject to unauthorised use. All forward-looking statements in this presentation are based on information known to Astro on the date hereof. Astro undertakes no obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation has been prepared by Astro. The information in this presentation, including forward-looking statements, has not been independently verified. Without limiting any of the foregoing in this disclaimer, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of such information. Astro and its subsidiaries, affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs or expenses howsoever arising out of or in connection with this presentation. 1 | 4QFY19 results
4Q FY19 key performance highlights 4Q FY18 vs 4Q FY19 EBITDA -2% Revenue -1% RM391mn → RM382mn • Increased reach - 75% to RM1.39bn → RM1.37bn Healthy EBITDA margin of 28% 77% household penetration Revenue resilient (34% excluding one-off separation • Sterling e-commerce scheme cost) performance – highest ever quarterly revenue of Adex +0.2% Norm. PATAMI (1) +42% RM99mn RM196mn → RM196mn RM112mn → RM159mn • Adex with the biggest Leading adex share of 44%, 76% and Solid norm. PATAMI margin of 12% growth of 45% coming from 5% for TV, Radio and Digital digital E-commerce +16% • Differentiation factor FCF of RM 179mn through vernacular content RM85mn → RM99mn -12 % from RM 204mn and talent underpinning 75% Strong revenue growth recorded TV viewership share 152% of PATAMI NB: 2 | 4QFY19 results (1) Normalised PATAMI excludes post-tax impact of (i) unrealised forex gain/(loss) 4Q FY19: RM 17mn, 4Q FY18: RM 69mn due to mark-to- market revaluation of transponder-related finance lease liabilities and (ii) 4Q FY19: one-off separation scheme cost of RM 58mn
FY19 overview Scaling reach… NB FY18 FY19 Growth (1) TV household data sourced from the Department of TV households (000s) (1) 7,321 7,439 2% Statistics Malaysia and Media Partners Asia (2) Household penetration comprises residential Pay-TV TV household penetration (2) 75% 77% 2 pp customers and NJOI customers TV customer base (000s) 5,489 5,713 4% (3) Viewership share is based on DTAM deployed by Kantar Pay TV ARPU (RM) 99.9 99.9 - Media (4) Audience measurement is provided by GfK Astro TV viewership share (3) 77% 75% -2 pp (5) Average monthly unique visitors to Astro’s digital assets in Radio listenership (mn) (4) 16.5 16.2 -2% the last 12 months as sourced from comScore (6) Connected set-top boxes (STBs) are internet-ready and have Average monthly unique visitors (mn) (5) 6.9 8.3 20% access to Astro’s On Demand library of content Connected STBs (000s) (6) 804 1,003 25% (7) Normalised PATAMI excludes post-tax impact of (1) unrealised forex gain/(loss) FY19: (RM 41mn), FY18: RM …enabling resilient results 93mn due to mark-to-market revaluation of transponder- related finance lease liabilities and (2) FY19: one-off separation scheme cost of RM58mn FY18 FY19 Growth (8) Numbers may not add up due to rounding differences Revenue (RM mn) 5,531 5,479 -0.9% Adex (RM mn) 722 687 -5% EBITDA (RM mn) 1,820 1,605 -12% EBITDA margin 33% 29% -4 pp Normalised PATAMI (RM mn) (7) 678 563 -17% FCF (RM mn) 1,364 1,291 -5% EPS (RM sen) 14.8 8.9 -40% 3 | 4QFY19 results
Leading content & consumer company TV COMMERCE CONTENT RADIO DIGITAL Digital Brands • Largest Pay-TV • 11 radio brands • #1 premium content • 8.3mn avg monthly • 24/7 multilanguage operator in SEA creator & aggregator unique viewers across shopping experience • #1 highest rated • Serving 5.7mn • Investing in content over 25 digital brands • 1.8mn registered stations across 4 key households verticals with • Gempak is the No. 1 customers languages • 77% h ousehold regional reach digital entertainment • 14.8mn monthly digital penetration • Produced 12.6k portal in Malaysia streams & 16.2mn • 44% TV adex share hours of content in • 5% digital adex share weekly listeners • 1mn connected STBs FY19 • 76% radex share NB: 4 | 4QFY19 results (1) Cumulative count since inception (2) Connected set-top boxes (STBs) are internet- ready and have access to Astro’s On Demand library of content
Revenue resilient underpinned by growth drivers Total revenue (RM mn) 120 2,000 110 1,800 100.80 100.80 99.90 100.70 99.60 99.90 99.90 99.90 100 1,600 YoY growth (2) 1,420 1,417 90 1,397 1,388 1,384 1,326 1,368 1,400 70 GoShop (+29%) 1,311 94 73 85 98 99 62 80 84 208 161 175 196 Adex (-5%) 1,200 143 179 196 151 70 Subscriptions/ 1,000 Others (-2%) 60 ARPU (+0%) 800 50 (1) 1,162 1,140 1,149 1,121 1,107 1,107 1,076 1,073 600 40 400 30 200 20 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 NB (1) Disclosed as Subscription revenue and Other revenue in our financial statements, includes revenue streams such as TV subscription, licensing income, programme sales, NJOI revenue and theatrical revenue 5 | 4QFY19 results (2) YoY growth refers to FY19 vs FY18 (3) Numbers may not add up due to rounding differences
Strong adex momentum in 2H FY19 Avg monthly unique (2) (1) (RM mn) YoY growth Advertising income visitors (mn) Share of digital adex Total Malaysia TV Radio Digital Total gross ADEX YoY 5% 8.3 4% growth -5% 6.9 (2)(5) 208 43% 8 196 FY18 FY19 196 OVERALL ADEX FY18 FY19 11 Share of radex Radio listeners (mn) (3) 16 -2% 179 175 14 10 161 151 83 12 143 -10% 76 8 73 DIGITAL 76% 6 73% 16.5 16.2 64 73 20% 69 63 67 FY18 FY19 FY18 FY19 RADIO Share of TV adex TV viewership share (4) -12% -5% 117 109 107 100 92 80 80 70 77% 75% 44% 44% TV -5% 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 FY18 FY19 FY18 FY19 NB (1) Advertising income is net of commissions and discounts (2) YoY growth refers to FY19 vs FY18 (3) Audience measurement is provided by GfK. Share of radex is based on internal estimates (4) Viewership share is based on DTAM deployed by Kantar Media. Share of TV adex is based on Astro and Group M’s estimates 6 | 4QFY19 results (5) Malaysia gross adex figures (covering TV, print, radio, cinema, in store media, outdoor and digital) are based on Nielsen and Group M’s data (6) Numbers may not add up due to rounding differences
Relentless focus on operational efficiencies (RM mn) Total cost 50% Normalised 39% EBITDA margin 35% 35% 34% 40% of 34% (4) EBITDA margin 30% 28% 28% 2,000 30% 20% (3) 20% Content cost/TV 28% 36% 36% 34% 34% 33% 30% 48% 1,500 revenue 10% 1,295 1,186 1,166 1,153 0% 1,081 1,029 1,043 1,017 1,000 693 -10% Other expenses 706 778 737 665 663 624 -20% 690 500 -30% 602 -40% Content costs 447 418 429 405 408 353 352 - -50% 1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19 2Q FY19 3Q FY19 4Q FY19 NB (1) Content costs are disclosed as part of cost of sales in our financial statements (2) Other expenses include marketing and distribution costs, administrative expenses, STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs (3) Higher content cost due to FIFA World Cup 2018 (4) Normalised EBITDA margin excludes one-off separation scheme cost 7 | 4QFY19 results (5) Numbers may not add up due to rounding differences
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