ANALYST MEETING November 22, 2019 1 Disclaimer The information - - PowerPoint PPT Presentation

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ANALYST MEETING November 22, 2019 1 Disclaimer The information - - PowerPoint PPT Presentation

ANALYST MEETING November 22, 2019 1 Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential and is provided by JKN Global Media Public Company Limited (the Company) to you solely


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ANALYST MEETING

November 22, 2019

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The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by JKN Global Media Public Company Limited (the “Company”) to you solely for your reference. This presentation is confidential and its content may not be copied, reproduced, redistributed, quoted, referred to or otherwise disclosed, in whole or in part, directly or indirectly, to any third party without the prior written consent of the Company. Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. None of the Company respective directors makes any representation or warranty (express or implied) regarding, and assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. None of the Company or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities in Thailand or any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the Company and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar

  • meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a

result of various factors and assumptions.

Disclaimer

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Agenda

Company Overview Financial Highlights Q&A Business Outlook

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COMPANY OVERVIEW

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Company Established with paid-up capital 1 mil Baht JKN Dramax channel operated.

Digital TV was launched for public in Thailand License of CNBC channel from National Broadcasting Company Universal (NBC) Listed in The Market for Alternative Investment (mai)

International sales -Indian series

A worldwide distributor of BEC

Company Background

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99.99% 99.99% 99.99% 99.99%

The TV Station broadcasting through CabSat and IPTV system under channel called “JKN Dramax”. We have been Doing research to develop our business as Integrated Marketing Communication Distributor. We have been Doing research to develop TV news channel “CNBC Thailand”. We have been Doing research to develop our business as the entire financial and investment training institution.

Company Structure

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To be the Number 1 global content management and distribution company in Thailand and CLMV countries.

Corporate Vision

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Digital TV Cable & Satellite TV Home Entertainment Over The Top (OTT) Merchandise Publishing Ancillary

Program rights

Distribution

Our company is expert in communicating with world-class contents manufacturer such as, Factual Entertainment, Fiction Entertainment, Asian Fiction, Animation and News. The Company has divided all contents for distribution by providing. Supplying and managing contents from around the world.

All our content is instant content which already translated and narrated into Thai before deliver to our clients.

Our content is now cover all kind

  • f platform Such as digital TV ,

Cable TV satellite Home Entertainment and Internet TV. Localization Import Content Platforms Content management

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Exclusive Rights

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Sole Distributor

The company imports worldwide contents from world-class companies which most of content licenses is under the Output Deal Term. "The Output Deal Term" is the agreement that licensee receives the first option to purchase and distribute the content. The company's famous contents are under the Output Deal Term such as Hanumann and NaKhin.

The company imports worldwide contents from world-class companies which most of content licenses is under the Output Deal Term. "The Output Deal Term" is the agreement that licensee receives the first option to purchase and distribute the content. The company's famous contents are under the Output Deal Term such as Hanumann and NaKhin.

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Excusive rights

Exclusive rights

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Program rights 8 Categories

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FINANCIAL HIGHLIGHTS

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28 361 424 417

3Q 2018 2Q 2019 3Q 2019

304 457 846 1156 1423

1059 1287 2014 2015 2016 2017 2018 9M2018 9M2019

Financial Highlight

Program right

Media Product Other

Revenue - YTD (THBm)

Revenue

  • Total revenue of the company and its subsidiaries increased

from the increasing of revenue from program rights.

  • The company continues its acquisition of new content rights

in order to support the growth of the business.

Revenue by segment

Growth 22%

92%

4% 3% 1%

FY 2018

98%

0% 1% 1%

9m 2019

Revenue - 3 mths (THBm)

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Content platforms 1950 - 2010 2011 - 2017 2018 - 2019

Analog TV Cabsat TV Analog TV Cabsat TV DTT Online Streaming Cabsat TV DTT Online Streaming DVD Blu-ray USB DVD Blu-ray USB Cassette Tap CD

Revenue by platforms (THBm) 58 269 163 84 59 128 350 383 333 252 8 33 180 179 434 234 179

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  • 6

6 253 266 106 433 225 225

  • 2

121 111 22

  • 21

21

  • 5

133 11 11 18

  • 100

200 300 400 500 2016 2017 2018 9m 2018 9m 2019 Cabsat DTT VOD Home Ancillary Cabsat, Home Cabsat, VOD DTT, Cabsat DTT, Cabsat, VOD DTT, VOD VOD, Home

Adaptability

Adaptability

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Revenue by platforms (THBm)

  • 58

393 264 8

  • 269

458 312 33

  • 385

169 574 11 180

  • 177

89 513 11 179

  • 171

224 327 18 523 2

  • 100

200 300 400 500 600 700 DTT, CABSAT (TV Program) CABSAT DTT HOME VOD CINEMA 2016 2017 2018 9m 2018 9m 2019

Adaptability

Revenue by platforms

Unit: Million Baht 9m 2018 % 9m 2019 % Change %

DTT, CABSAT (TV Program) 177 18% 171 14% (6) (3%) CABSAT 89 9% 224 18% 135 152% DTT 513 53% 327 26% (186) (36%) HOME 11 1% 18 1% 7 64% VOD 179 18% 523 23% 344 192% CINEMA

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0% 2 100% Total 969 100% 1,265 100% 296 31%

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Revenue by platforms (THBm) 72 4 138

  • 80

105

  • 174
  • 69

86 105 78

  • 173

3 68 67 1 273

  • 50

100 150 200 250 300 DTT, CABSAT (TV Program) CABSAT DTT HOME VOD 2Q 2018 3Q 2018 2Q 2019 3Q 2019

Adaptability

Revenue by platforms

Unit: Million Baht 3Q 2018 % 2Q 2019 % 3Q 2019 %

DTT, CABSAT (TV Program) 105 30% 86 19% 3 1% CABSAT

  • 105

24% 68 17% DTT 174 50% 78 18% 67 16% Home

  • 1

0% VOD 69 20% 173 39% 273 66% Grand Total 348 100% 441 100% 412 100%

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Content by Geographic

863 MB 402 MB

Thailand Export

13% 24% 63% 0% 10% 20% 30% 40% 50% 60% 70% Indian Philippines Other 12 306

318

50 100 150 200 250 300 350

Total Thailand Export

Revenue Revenue - Categories Backlog

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Expenses

  • The increase in costs resulted from increased amount of rights held

by the Company

  • Administrative expense increased from the last year was resulting

from the increase in employee cost to support the growth of the business and new business such as news station under the name of JKN CNBC, and the increase in loss on exchange rate of THB 26.27 million due to the fact that the Thai Baht value appreciated against US Dollar. Cost of Program rights Cost of media Cost of goods sold SG&A 9m 2019

232 255 558 830 1068 959 2014 2015 2016 2017 2018 9m 2019

Financial Highlight

75% 2% 1% 22%

55% 14% 59% 14%

56% 17%

0% 20% 40% 60% 80% Cost of program right SG&A 2017 2018 9m 2019

Total expense (THBm) Expenses Expenses per total revenue

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Selling & Administrative expenses

19 14 3 12 19 7 2 4 6 8 10 12 14 16 18 20 Events Marketing AD & PR Other 9m 2018 9m 2019 65 8 6 29 99 10 26 9 33 20 40 60 80 100 120 Employee cost Profession fee Loss on exchange rate Doubtful debts Other 9m 2018 9m 2019

Unit : Million Baht

9m 2019 9m 2018 YoY Change % Change

Events marketing

12.22 19.34 (7.12) (36.81%)

Advertising & PR

18.98 13.50 5.48 40.59%

Other

6.57 2.82 3.75 132.98%

Total selling expenses

37.77 35.66 2.11 5.92%

Unit : Million Baht

9m 2019 9m 2018 YoY Change % Change

Employee cost

98.81 65.14 33.67 51.69%

Professional fee

10.31 8.20 2.11 25.73%

Loss on exchange rate

26.27

  • 26.27

100.00%

Provision for doubtful accounts

8.85 5.90 2.95 50.00%

Other

33.13 28.59 4.54 15.88%

Total administrative expenses

177.37 107.83 69.54 64.49%

Selling Expenses Admin Expenses

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35 Gr Gros

  • ss p

prof

  • fit &

& Gr Gros

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prof

  • fit m

margin

  • The increase in net profits and net margin in 9-month period of 2019

from last year was due to the rise in revenue from program rights, and most of the cost of program rights is the amortization expenses which is increase rate lower than the growth of income. RO ROA & & RO ROE

  • The increase of ROE was due to the increase in total revenue and net

profit margin. The increase of ROA was due to significant growth in

  • perating results.

Financial Highlight

107 259 395 488 525 408 535 35.2% 56.7% 46.9% 42.3% 37.4% 39.0% 41.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 100 200 300 400 500 600 2014 2015 2016 2017 2018 9m 2018 9m 2019 Gross profit Gross profit Margin 49 133 164 188 227 182 203 16.3% 29.2% 19.4% 16.2% 16.0% 17.2% 15.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 50 100 150 200 250 2014 2015 2016 2017 2018 9m 2018 9m 2019 Net Profit Net profit Margin 12.6% 15.0% 12.0% 7.8% 7.1% 8.0% 7.4% 50.9% 46.4% 35.2% 15.8% 11.7% 12.6% 11.9% 2014 2015 2016 2017 2018 9m 2018 9m 2019 ROA ROE Gross profit (THBm) ROA & ROE Net profit (THBm)

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Financial Highlight

730 1,044 1,696 3,139 3,251 3,742 539 660 1,147 1,312 1,197 1,577 191 384 549 1,826 2,054 2,165 2.8 1.7 2.1 0.7 0.58 0.73 0.5 1 1.5 2 2.5 3 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2014 2015 2016 2017 2018 30.09.2019 Asset Liabilities Shareholder's equity Debt to equity ratio (time) 0.91 0.78 0.56 1.34 4.58 2.72 2014 2015 2016 2017 2018 9m 2019 1.1 0.99 0.97 1.11 1.34 2015 2016 2017 2018 9m 2019 Current ratio (time) Intangible asset turnover (THBm)

Balance sheet composition (THBm) & D/E ratio

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Intangible assets – Program rights

CAPEX (THB Million)

Target 2019 Program rights 1,000 CNBC news Channel 50 Content & Broadcast system 50 Total CAPEX 1,100

296 62 234 340 120 447 965 389 1,023 777 616 1,184 776 779 1,181 955 694 1,449

Acquisitions Amortize program rights NBV 2014 2015 2016 2017 2018 9m2019 37

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Accounts receivable

Trade receivables -unrelated 30.09.62 % 31.12.61 % Change % Change Not yet due 698,257 43% 579,567 52% 118,690 20% Past due Up to 3 months 320,261 20% 136,898 12% 183,363 134% 3 – 6 months 266,152 17% 90,792 8% 175,360 193% 6 – 12 months 331,422 21% 302,840 27% 28,582 9% Over 12 months 2,138 0% 8,151 1% (6,013) (74%) Total 1,618,230 101% 1,118,248 100% 499,982 45% Less : Allowance (10,878) (1%) (2,028) (0%) (8,850) 436% Net Trade receivables 1,607,352 100% 1,116,220 100% 491,132 44% Day in AR turnover 292 Days 241 Days

As of 14 November 2019, the Company collected debts from trade receivables amounts Baht 100 million. 38

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CON ONVE VERTIBLE B LE BON OND

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Summary CB หัวข้อ รายละเอียด จํานวนเงินต้น ไม่เกิน 1,200 ล้านบาท อัตราดอกเบี้ย 3% ต่อปี อายุ 5 ปี นับจากวันออกหุ้นกู้ ราคาแปลงสภาพ 8 บาทต่อหุ้น ระยะเวลาใช้สิทธิแปลงสภาพ หลังครบกําหนด 1 ปีนับจากวันออกหุ้นกู้ หุ้นสามัญเพื่อรองรับการ แปลงสภาพ 150 ล้านหุ้น คิดเป็น 21.74% วิธีการจัดสรร จัดสรรให้กับ North Haven Thai Private Equity ซึ่งเป็นนักลงทุน สถาบัน ภายใต้การบริหารของ Morgan Stanley

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จ่ายชําระคืนเงินกู้ยืม 600 ล้านบาท

ใช้ในการขยายธุรกิจในอนาคต 300 ล้านบาท ใช้เป็นเงินทุนหมุนเวียน 300 ล้านบาท

วัตถุประสงค์การใช้เงิน

Financial cost ของ เงินกู้ระยะยาว เท่ากับ 7.8-8%

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ลดภาระต้นทุนทางการเงิน

เพิ่มสภาพคล่องในการดําเนินธุรกิจ Morgan Stanley เป็นนักลงทุนสถาบัน ที่เข้ามาลงทุนระยะยาว พันธมิตรที่จะสามารถเข้ามาช่วยเหลือ ในเรื่องการขยายธุรกิจไปยังต่างประเทศ

ผลประโยชน์จากการออกหุ้นกู้แปลงสภาพ

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Conversion effects

Debt per equity ratio

ณ วันที่ 30 กันยายน 2562

0.73

หลังจากออกหุ้นกู้แปลงสภาพ

1.28

หลังจากชําระคืนเงินกู้ยืมบางส่วน

1.00 Share capital

จํานวนหุ้นปัจจุบัน

540 mil

หุ้นที่รองรับการแปลงสภาพ

150 mil

รวมจํานวนหุ้น

690 mil % ของหุ้นที่ออกใหม่ 21.74%

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BU BUSINESS O SS OUTL UTLOOK

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304 457 846 1156 1423

1279 2014 2015 2016 2017 2018 2019

Revenue Target

47%

Backlog 318

15%

VOD CNBC International Market

Revenue (THBm) & Target 2019

Backlog

Actual 9m 2019 45

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JKN acquired the top ranks Indian series with high budget productions for selling international markets, such as Porus, Prithi Vallabh, and Vigharnarta Ganesh. Last year, we were selling our series for the amount more than Baht 600 million to The international markets include Cambodia, Lao PDR, Myanmar, Vietnam.

Indian Series

Interna natio iona nal S l Sales - Master Pieces of Indian Series

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We are the sole worldwide sole distributor of BEC World* which we got the exclusive rights of more than 90 series of Channel 3HD, including romantic comedy, melodrama, and horror for international sales. We were selling the Channel 3HD series to Philippines and Malaysia.

Thai series

interna natio iona nal s l sales - Great series from Channel 3HD

*Excluding China, Macau, HongKong, Cambodia, Myanmar, Vietnam

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inter ernational s sales es - JKN & BEC contract Renewal *Excluding China, Macau, HongKong, Cambodia, Myanmar, Vietnam

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International Content Markets 2019

MAR 18-20

HK FILMART (MAR 18-20)

AUG 21-23

BCWW, Seoul - August 21-23

AUG 28-29

Content Asia Summit, Singapore - August 28-29, 2019

OCT 14-17

MIPCOM, Cannes – October 14-17, 2019

DEC 02-05

ATF, Singapore - December 2-5, 2019 50

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Filmart Hong KONG - Mar 2019

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Filmart Hong KONG - Mar 2019

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Content Asia - Aug 2019

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MIPCOM France - Oct 2019

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ATF Singapore - Dec 2019 (Upcoming)

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ATF Singapore - Dec 2018 (Last year)

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Material

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Our Business partner

  • We work with leading broadcasters and digital

platforms around the world

  • We have output deals with major clients such as

GMA (Philippines) and Dimsum (Malaysia, Brunei & Singapore).

  • We craft a volume of stand alone linear & digital

deals throughout the year and around the globe.

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OUR Market Penetration Strategy: Philippines

  • We recently closed about 500 hours of content

to GMA

  • Currently in discussion with ABS-CBN for other

titles.

  • We also target to push Thai Content channel to

Cignal which is no.1 Pay TV platform in the Philippines.

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Philippines - Price proposed

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OUR Market Penetration Strategy: Malaysia, Brunei and Singapore

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  • We have licensed over 425 hours of Thai content to

Dim Sum in Malaysia an OTT player covering Malaysia, Brunei and Singapore. Dim Sum will soon be launching in Indonesia later part of the year.

  • Astro is the largest DTH platform in Malaysia and we

are in discussion for some horror content.

  • While with Media Prima, they would like Thai content

with Chinese Subtitles.

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OUR Market Penetration Strategy: Indonesia

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  • We have to prioritize Indonesia due to its

261M population.

  • Thai content has never been exposed in the

Indonesian market but we are confident that Indonesians will be able to accept Thai

  • dramas. Therefore, we will be working with

Rajawali TV in Indonesia in incubating Thai drama in their network.

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OUR Market Penetration Strategy: South Korea and Japan

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Korea

  • We closed deal 265 hours of Thai drama to

TVA (Korea) Japan

  • We are in discussion with Hulu Japan.
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The company licensed from CNBC to translate items with content about business and economic broadcasts around the world in order to sell to the broadcast tv channels as Thailand language. Domestic Thailand In addition, the company has received permission to produce items in the format of CNBC by MC Thailand. At present, the company has started to sell items made the translation with Channel 3 and Bright TV. In the future, the company will bring the winnings from the IPO to develop Studio filming for CNBC.

ตัวอย่างรายการในเครือ CNBC

JKN CNBC Project

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CNBC Studio

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Q & A

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