RS PCL 3Q18 Results Briefing 30 November 2018 Harp Meeting Room, RS - - PowerPoint PPT Presentation

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RS PCL 3Q18 Results Briefing 30 November 2018 Harp Meeting Room, RS - - PowerPoint PPT Presentation

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RS PCL 3Q18 Results Briefing 30 November 2018 Harp Meeting Room, RS Building I RS PLC. Proprietary & Confidential http://www.rs.co.th/investor.html Disclaimer This Presentation has been prepared by RS Public Company Limited. The

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RS PLC. Proprietary & Confidential http://www.rs.co.th/investor.html

RS PCL

3Q18 Results Briefing

30 November 2018

Harp Meeting Room, RS Building I

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Disclaimer

This Presentation has been prepared by RS Public Company Limited. The Information contained herein includes forward looking statements which are based on current expectations and assumptions about future events. All Statements other than statements of historical facts, including, among others, statements regarding RS Public Company Limited’s Future financial position and results, outlook for 2019 and future years, business strategy and objectives of management for future operations, are forward- looking statements. No representation or warranty is made as to the accuracy, completeness or reliability

  • f the information. Any forward looking information in this presentation has been prepared on the basis of

a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by RS Public Company Limited. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

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Topic

  • 3Q18 Financial Results
  • Expected Plan and Performance for 4Q18
  • What’s Next in 2019
  • Q&A
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Quarterly Financial Results

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124 110 102 172 107

12% 12% 10% 18% 12%

3Q17 4Q17 1Q18 2Q18 3Q18

423 466 580 504 459 463 371 307 364 300

62 61 66 54 52

989 914 969 955 837

42% 44% 40% 41% 41%

3Q17 4Q17 1Q18 2Q18 3Q18

  • 15%YoY
  • 12%QoQ

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(THB mn, %)

Revenue and GPM Net Profit and NPM

Quarterly Financial Results 3Q17-3Q18

Multi-platform Commerce (MPC) Media Music Event Multi-platform Commerce (MPC) Media Music Event

NPM (THB mn, %)

  • 14%YoY
  • 38%QoQ

GPM

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Deferred Tax Asset in 3Q18

3Q18 Financial Statement Amount

(THB mn)

EBT

108.8

20% Income tax

21.8

Adjusted items:

  • Allowance for impairment of investments in subsidiaries*
  • 20.4
  • Other regular items

+0.8

Income tax reported on F/S

2.2

* Booked as deferred tax assets, with the expectation that such assets could be used for future tax benefits

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Multi-platform Commerce (MPC)

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199 301 423 466 551 380 349 29 124

110

199 301 423 466 580 504

459

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

89% SatTV 11% 8

MPC - 3Q18 Revenue and GPM

(Revenue, THB mn) Inbound 59% Outbound 31% Online 8% Retails 1% LS Biz 1%

3Q18 Revenue Contribution

  • A temporary effect by news of a crackdown on illegal H&B

products by the Thai FDA

  • A clear sign of the market recovery by Aug-Sep and it have

already showed great performance in Oct

  • Continue to add new SKUs as planned and new product

category e.g. accessories

  • Effectively manage database; reached 1mn customers
  • Boost Telesales teams (Outbound team) to ensure higher

repeated sales and increase product orders

LifeStar’s

YoY : +9% QoQ : -9%

H&B H&L

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MPC - Customer Profile Compare to CH8’s Audience

49% 51% Y4+, 27% Y30+, 13% Y40+, 24% Y50+, 36% 34% 66%

Gender

Y4+, 6% Y30+, 14% Y40+, 24% Y50+, 56%

Age

Total Customer

(@Oct’18)

1M Price Size

(THB/ticket)

2,000-3,000 Repeat Purchase

(within 6mo.)

24%

Source: MPC’s database during 2Q18 and CH8’s audience base during Sep’18

Rating (15+,18hr) TVR: 0.70% Viewership: 400K Reach Reach: 10M

Demographic

Bangkok & Vicinity, 29% Other big cities, 61% Small cities, 10% Bangkok & Vicinity, 15% Urban, 25% Rural, 60%

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MPC - Platforms

* Percentage of estimated 2018 revenue contribution from each platform

Media (90%)* Online (8%)* Retails (1%)* Direct sales (1%)*

1,000 members 400,000 followers www.shop1781.com

MPC has 4 main distribution channels; media (RS’s digital TV, satellite TVs and radio station), online (RS’s e-commerce websites and LINE application), retail outlets (Watsons, Tops market and other drugstores nationwide) and direct sales channel under the brand “Lifestar BIZ” (nationwide membership network).

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Health & Beauty (80%)* Home & Lifestyle (15%)*

MPC - Products

Skincare Food Supplement Hair Care Kitchenware & Tableware Clothes & Wear Home & Living Lifestyle & Gadget

Accessories (3%)*

MPC has 4 product categories; health & beauty products, home & lifestyle products, accessories and & others.

Others (2%)*

* Percentage of estimated 2018 revenue contribution from each product categories

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Dec’ Dec’ Dec’ Dec’ (ตามไฟล์เอย) เอยแจ้ง แต่พยายามใส่ไปให้ได้ประมาณ 100 (12+ ) พระพิฆเนศ

Type of Products Products’ Ownership

  • No. of SKU

End 2017 End 2018(E) End 2019(E) Health & Beauty Products (H&B)

Skincare

9 17 Double no. of SKU / Add more hero products by 3x

Food Supplement

6 9

Hair Care

4 5

Partner’s Products

10 18

Home & Lifestyle Products (H&L)

  • 41

Accessories

  • 5

Others

  • 1

Total No. of SKU 29 ~100

MPC - No. of SKU of Each Category

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Media

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CH8 Ratings and Highlights

Rating by Program (%)

Series Finale Rating

2.255

Highest Rating

2.466

  • TV program reshuffled in Jul
  • Two boxing programs removed
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355 341 365 278 238 283

229

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

TV - 3Q18 Revenue and GPM

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  • Overall ad spending declined each month in

3Q18 (exc. budget allocated to a sports broadcasting event)

  • CH8 average ad rate is fixed for long-term

contract sales but the utilization rate decreased in line with overall situation of the media industry

  • Each satellite TV channel has been positioned

as a shelf for MPC and it has been successful with no cost-burdens (Revenue after rebate, THB mn)

YoY : -37% QoQ : -19%

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77 84 91 88 66 80

71

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

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Radio - 3Q18 Revenue and GPM

(Revenue, THB mn)

  • “COOLfahrenheit” remains No.1 ranking for Easy

Listening category, surveyed by AGB Nielsen

  • A cash cow business for the Company,

generating high margin but slow-growing

YoY : -21% QoQ : -11%

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Music & Event

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41 57 41 16 16 33

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1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 67 64 62 61 66 54

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1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

  • Main revenues are generated from YouTube and
  • ther online music streaming services such as Joox

and Spotify

  • Limit the number of artists, only the main ones

with earning potential to control costs more effectively

  • Event business concentrates to in-house events

that support RS’s media channels which mainly are Channel 8 and Sabaidee TV

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“Music Marketing and Services”

Music & Event - 3Q18 Revenue and GPM

(Revenue from Music business, THB mn) (Revenue from Event business, THB mn)

YoY : -17% QoQ : -4% YoY : -36% QoQ : -22%

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Expected Plan and Performance for 4Q18

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Expected 4Q18 Plan and Performance

Multi-platform Commerce (MPC) Media - CH8

  • Launch exclusive product for direct sales channel,
  • fficial launch by mid of Dec
  • Sourcing high margin products
  • Stay tuned for a big promotion “Shop1781 New

Year Grand Sales” to boost sales volume at the end

  • f this year
  • MPC is expected to make a record high sales in

4Q18

  • Maintain production cost at

THB 580mn for 2018

  • New Thai drama series and

international series are planned to capture more audiences and CH8 aims to reach 400K viewers or 0.7% rating (15+,18hrs) by end of 2018

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