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Disclaimer This report has been prepared by PT MD Pictures Tbk - - PowerPoint PPT Presentation

Nov 27, 2022 506 likes •932 views

PT MD PICTURES Tbk November 2018 Disclaimer This report has been prepared by PT MD Pictures Tbk independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report.

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PT MD PICTURES Tbk

November 2018

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Disclaimer

This report has been prepared by PT MD Pictures Tbk independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem

  • reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the
  • information. All opinions and estimates included in this report constitute our judgment as of this

date and are subject to change without prior notice. We disclaim any responsibility or liability (expressed or implied) of PT MD Pictures Tbk and/or its affiliated companies and/or their respective employees and/or agents whatsoever and howsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither PT MD Pictures Tbk and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions or miss- statements, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.

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Table of Contents

Industry Overview

  • 4

Industry Overview

  • 4

Company Overview

  • 10

Company Overview

  • 10

Financial Highlights

  • 27

Financial Highlights

  • 27

Looking Ahead

  • 37

Looking Ahead

  • 37
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SLIDE 4
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Indonesia Industry Overview

MOVIE VIEWERS PROJECTED TO INCREASE BY 38% IN THE NEXT 5 YEARS Number of viewers is expected to be 30.2 million in 2023 compared to 21.9 million in 2018 an increase in 38%

  • ver the next 5 years.

The average revenue per user (ARPU) spent on cinema tickets currently amounts to US$3.10

Source: Statistics, BPS

GROWTH IN MOVIE INDUSTRY AND HIGHER REVENUE IN CINEMA TICKETS Revenue in the cinema tickets segment amounts to US$68m as of November 2018. Cinema ticket revenue is expected to show an annual growth rate (CAGR 2018-2023) of 18.1%, resulting in a market volume of US$156 million by 2023. HIGH POPULATION AND INCREASE IN INCOME LEADING TO HIGHER MARKET DEMAND Population of Indonesia in 2017 was 261.9 million, estimated to be 265.5 million in 2018 2017 GDP per capita was IDR 51.9 million, estimated to be IDR 56.1 million in 2018.

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Spending on Indonesian Movies

Total number of viewers

2008

Rp.13.000

427.7 B

2009

Rp.14.000

400.1 B

2010

Rp.15.000

239.4 B

2011

Rp.21.000

340.1 B

2012

Rp.22.000

419 B

2013

Rp.30.000

384.5 B

2014

  • Rp. 33.000

523.8 B

2015

Rp.35.000

569.1 B

2016

Rp.35.000

1.3 T

2017

Rp.38.012

1.6 T Despite rising ticket prices, there is an increase in spending on local films

Source: filmindonesia.org,2018

Spending

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Total Number of Screens

2020

2500

Total numbers of screens

The total number of screens in Indonesia are projected to rise by over 40% in the next 2 years

2012

774

2014

943

2016

1192

2018

1750

2017

1412

2019

2100

2013

829

2015

1125

Source: CGV,2018

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Total Audience of Indonesian Films

Total number of viewers

Source: filmindonesia.org, 2018

In 2017, the local film market share was 38% and as many as 119 local films were released The numbers in 2018 are estimated to go up to approximately 41%

2007

15,623,893

2015

16,260,972

2009

28,581,051

2011

15,644,265

2013

12,816,786

2017

42,724,610

2008

32,897,784

2010

15,959,371

2012

19,040,945

2014

15,515,716

2016

37,227,428 Total of viewers(MD) :

10.4 mio (Indonesian Films)

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+ Increasing number of screens + Increasing number of viewers + Increasing spend on entertainment + Other supporting factors including high market potential for digital businesses and removal of the film

industry from Negative Investments list

OUR OPPORTUNITIES

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Profile

MD PLACE STUDIO 7

  • Unique, cutting edge building symbolizing the

living and growing nature of the company

  • Houses MD Music and MD Entertainment offices
  • Houses award winning restaurants such as

Akira Back, Valentino and AB Steak

  • Develop sound stages and extensive

filming facilities

MD PICTURES

  • Film Production
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Innovation, Collaboration, Integrity & Passion

VISION MISSION VALUES

Our vision is for the stories we tell to inspire, and find a place in the homes, hearts and memories of audiences worldwide. Our mission is to be a front-runner in the local film industry and launch globally by working together collaboratively to innovate, create and consistently produce high value films.

WHAT DO WE STAND FOR?

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Management Team

Dhamoo Punjabi

President Commissioner

Shania Punjabi

Director

Bachtiar Effendi

Independent Commissioner

Soundararajan Venkatachari

Director

Manoj Punjabi

President Director

Sanjay Mulani

Independent Director

Sanjeva Advani

Commissioner

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Corporate Structure

PT MD Graha Utama 63.29% PT MD Global Media 22.79% Public Shares 13.92%

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MD Group

A part of a much larger synergy

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Milestones

MD Entertainment was born MD Entertainment began to top the ratings charts and legendary titles emerged. MD pioneered the concept

  • f daily shows

Integration strategy began “ONE STOP SHOP” entertainment concept expanded MD Pictures shattered all time Indonesian movie box office records, initiating a historical shift in the industry Creation of MD Animation took the industry by storm

2002 2004 2005 2008 2007 2012 2018

MD Pictures IPO on August 7th

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Our Core Business

Acquisition & Investment

PRODUCTION

Theatrical Release Digital Distribution Broadcast Licensing

SCREENPLAY

CONTRACT TALENT

Secure Financing

Distribution

MARKETING Film Value Chain

Home Video

One of the few companies in Indonesia that does the whole process internally

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Competitive Advantage

MARKETING

+ In 2015, our film Surga Yang Tak Dirindukan changed film marketing in Indonesia + Digital marketing became a norm

TALENT MANAGEMENT

+ Top artists and specialists (such as directors and writers) are on exclusive contracts with MD + MD is associated with commercial success and scale

CONVEYOR BELT MODEL

+ Allows for increased scale and number of films + Easy to replicate models for consistency and efficiency

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One Stop Shop

Scale:

Steady increase in number of movies allows for preferential and exclusive deals.

Sales:

Increased revenue as a result of increased viewership of our films.

Synergy:

Capitalize on other the specialization of other companies.

Success:

Our box office successes and awards have helped synonymize our brand with success.

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#2 IN 2008

3.676.135 viewers

#1 IN 2012

4.583.641 viewers

#4 IN 2017

2.736.157 viewers

#1 IN 2015

1.523.617 viewers

MD Pictures’ Exceptional Concepts

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#7 IN 2017

1.637.472 viewers

#2 MARCH 2018

2.572.133 viewers

#3 IN 2017

2.840.159 viewers

#6 IN 2016

2.012.025 viewers

Franchise Value

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2018 Top Box Office Hits

1.680.037 Viewers 2.572.672 Viewers 900.362 Viewers

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Awarded to the company that achieves the highest number of viewers

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MD Pictures Track Record

TOTAL NUMBER OF MOVIES PRODUCED AND ANNUAL NUMBER OF VIEWERS 2014-2017

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2017 : MD PICTURES’ COMPETITIVE POSITION BASED ON ‘HIT RATIO’

TOTAL NUMBER OF VIEWERS (TOP 15 FILMS)

TOTAL NUMBER OF MOVIES IN 2017

Size of bubble represents the number of films on the Top 15 most watched films list (2017)

Source: filmindonesia.org, 2018

Ranked Highest in Viewers & Movies Produced

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SLIDE 26

MARKET SHARE 2017

OTHERS

24.1%

Source: filmindonesia.org, 2018

Leading with Higest Market Share

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SLIDE 27

IBOMA Producer of the Year 2018 Producer of the Year Most Favorite TV film 2017 Movie of the Year 2013 All Time Box Office Success Best Visual Effects 2015 Best Film Editors Choice Award 2008 Best Selling Movie of the Year 2016 Most Appreciated Film of the Year 2008 Best Indonesian Language 2007 and many more !

Award Highlights

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Strong Balance Sheet

with a leap in Total Assets and decline Total Liabilities

IDR million

3Q 2018 2017 YOY Current Assets 351,985 34,876 909% Fixed Assets 1,033,113 166,508 520% Total Assets 1,385,098 201,384 588% Current Liabilities 47,836 53,454

  • 11%

Non-Current Liabilities 6,851 1,598 329% Total Liabilities 54,687 55,052

  • 1%

Total Equity 1,330,411 146,332 809%

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Excellent Operations with Solid Financial Performance

Jump in Revenue and increase in Net Income

3Q 2018 3Q 2017 YOY Revenue 232,788 139,478 67% Cost of Sales (53,497) (34,765) 54% Gross Profit 179,291 104,713 71% Operating Cost (57,056) (22,392) 155% Operating Profit 122,235 82,321 48% Other Income 3,735 390 858% Other Cost (42) (54)

  • 22%

Other Income, Net 3,693 336 999% EBIDTA 125,928 82,657 52% Net Income 96,677 74,342 30%

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Widescreen 68.64% Digital 22.89% Television 1.49% DVD & VCD 0.08% Others 0.90% Building Rental 5.92% Film Equipment Rental 0.09%

Revenue Stream

Widescreen 87.06% Digital 4.24% Television 6.68% DVD & VCD 0.17% Others 0.39% Film Equipment Rental 1.45%

Shift in revenue contribution, 19% increase in digital sales

Q3 2017

67% increase in revenue

IDR 139.5 billion IDR 232.8 billion

Q3 2018

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Earnings Growth

Net Sales

IDR Mil

Gross Profit & Gross Margin %

IDR Mil

59,205 80,748 153,719 232,788

2015 2016 2017 Q3 2018

35,397 38,733 107,379 179,291

2015 2016 2017 Q3 2018

59,79% 47,97% 69,85% 77,02%

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Earnings Growth

Operating Profit & Operating Margin %

IDR Mil

Net Profit & Net Margin %

IDR Mil

44,44% 34,65% 49,81% 52,51% 26,31 27,98 76,575 122,235

2015 2016 2017 Q3 2018

24,59 24,502 60,881 96,677

2015 2016 2017 Q3 2018

41,53% 30,34% 39,61% 41,53%

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Company Growth

Total Assets

IDR Mil

Total Liabilities Total Equity

IDR Mil

84,6 110,9 201,4 1385

2015 2016 2017 Q3 2018

74,6 99,9 146,3 1330,4

2015 2016 2017 Q3 2018 IDR Mil

10,0 11,0 55,1 54,6

2015 2016 2017 Q3 2018

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Healthy Financial Ratios

Q3 2018 ROA 6.98% ROE 7.27% Gross Profit Margin 77.02% Operating Profit Margin 52.51% Net Profit Margin 41.53% Current Ratio 7.36 Cash Ratio 5.60 Debt to Assets 3.95% Debt to Equity 4.11% Asset Turnover Ratio 0.17

1,52 1,36 0,65 7,36

2015 2016 2017 Q3 2018

12,04% 9,94% 27,34% 3,95 %

2015 2016 2017 Q3 2018

13,65% 11,0 3% 37,6 2% 4,11 %

2015 2016 2017 Q3 2018

Current Ratio Debt To Assets % Debt to Equity %

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Strong Share Performance

Approximately 288% increase in share price, 3 months since IPO

200 400 600 800 1000 1200 1400 1600 1800

FILM STOCK PRICE

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Growth Strategies

OUTSOURCING

STRATEGIC PARTNERSHIPS

ORGANIZATIONAL CAPACITY FUNCTIONAL DIVISIONS

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Growth Drivers

IMPROVE ORGANIZATIONAL CAPACITY INCREASE EFFICIENCY BY OUTSOURCING ENTER INTO JVs AND STRATEGIC PARTNERSHIPS ENABLE FUNCTIONAL DIVISIONS

  • Hire key personnel at managerial

level

  • HR policies in place for ongoing

training and transfer of knowledge

  • Nurturing ‘young producers’
  • Hire key personnel at managerial

level

  • HR policies in place for ongoing

training and transfer of knowledge

  • Nurturing ‘young producers’
  • Collaborating with independent

novelist and writers to cultivate innovative movie concepts

  • Manage fixed cost by engaging

external production teams

  • Collaborating with independent

novelist and writers to cultivate innovative movie concepts

  • Manage fixed cost by engaging

external production teams

  • Tie up with local and international

production houses to boost number and variety of movies produced

  • Create independent producers
  • Tie up with local and international

production houses to boost number and variety of movies produced

  • Create independent producers
  • Enable conveyor belt model system

to maximize efficiency at each point

  • f the value chain
  • Ensure stability and sustained

growth

  • Enable conveyor belt model system

to maximize efficiency at each point

  • f the value chain
  • Ensure stability and sustained

growth

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Future Plans

EFFECTIVELY IMPLEMENT GROWTH STRATEGIES EXPAND FILMING FACILITIES AND UPGRADE EQUIPMENT DEVELOP NEW BUSINESS POTENTIAL STRENGTHEN TIES WITH THE COMMUNITY INVEST IN FILM EDUCATION

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