+ TV Direct PCL. Opportunity Day Q2, 2014 TV Direct Public - - PowerPoint PPT Presentation

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TV Direct PCL.

Opportunity Day Q2, 2014

TV Direct Public Company Limited

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Agenda

• Corporate Information
• Financial Highlights
• Key events

+ Corporate Information

Name TV Direct Public Company Limited Established 1999 Head Office 25 Watcharaphon Rd. Tarang. Bangkhen, Bangkok 10230 Thailand Tel. 662-666-0999 Fax 662-666-0488 Registered Capital 234,999,996 Baht (7,300,000 USD) Par Value 0.5 THB Number of Shares ~470,000,000 Shares / Warrant ~23,500,000 Shares Type of Business Direct Marketing, Multi-Channel-Marketing, Marketing Services, Media Agency, and Export and Import Products Employees ~ 1,650 people

TV Direct PCL

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Organization Structure

99.99%

TV Direct Indochina Co., Ltd.

(90M THB Paid up capital)

TV Direct Public Company Limited

(234.99M THB Paid up capital)

100%

Direct Response Television Co., Ltd (Cambodia, 7.66M THB Paid up capital)

TV Direct Lao Co., Ltd

(Laos, 15M THB Paid up capital)

TV Direct (Malaysia)

• Sdn. Bhd.

(Malaysia, 20M THB Paid up capital.) 96.88% 90.60%

TVDI Vietnam Co.,Ltd

(Vietnam, 9.63M THB Paid up capital) 100%

JML Direct (Thailand) Co., Ltd.

(30M THB Registered Capital) 51.00%

TVD Shopping Co., Ltd

(445M Registered Capital) 65%.00

TVD Broker

(4M Registered Capital) 99.99%

Organization Structure

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No. Name # of shares Holding 1

• Ms. Issara Vitayathanakorn

42,071.315 8.95% 2

• Mr. Songpol Shanmatkit

40,301,041 8.57% 3 USE Electronics Co., Ltd. 37,778,113 8.04% 4

• Mr. Chien-Kuo LAI

34,538,074 7.35% 5

• Mr. Phaiboon Maturanont

30,454,167 6.48% 6

• Mr. Thanabul Maturanont

23,253,027 4.95% 7

• Mr. Leartpong Yongthanarat

19,696,117 4.19% 8

• Mr. Prathompob Chungpanichkit

12,120,200 2.58% 9 Fuji Media Holding 11,421,000 2.43% 10 Itochu Corporation 11,421,000 2.43% Sub total for top 10 shareholder 263,054,054 55.97%

Major Shareholders Structure

+ TVD Business

Multi Channel Marketing

TV Marketing Direct Marketing Conventional Marketing Direct Sales Services

5 Main Channels

+ TV Marketing

Direct Response Television

Selling product/service on TV with immediate response, a form of entertainment and presentation of products with testimonials from users, explaining the benefits of that product or service.

Meaningful Passion Action

2 marketing instruments: Direct Response Spot:

1 or 2 min

Infomercial:

20 min TV program

Analog Digital

Terrestrial TV Satellite TV

+ Direct Marketing

Mail

• Mail orders, consist of 3 types of

mails, the catalogs, syndications, and direct mails.

Tele sale

• . Our call center is online

everyday, 24 hours, with no day

• ff to provide customers and

clients the ultimate tele- experience.

Digitize

• TV Direct continuously develops

all digital media to connect and serve customer needs.

+ Retail

• TV Direct Showcase 78 stores

nationwide

• Genie Bra Showcase
• Eagle Eye Showcase

Wholesale

• Consignment to top hyper marts

and department stores

Caravan

• Caravan team to do warehouse

sale event as well as reaching out to rural areas

Conventional

+ Direct Sale

customers customers customers customers customers customers

Single level direct sale through representatives under the name “Sarah Direct”

+ Services

Direct Response Agency Advertisement

• Beauty TV
• Health and Family

Fulfillment

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Subsidiaries Business

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JML Direct (Thailand) Co., Ltd.

Screen to screen is a business model where media on screens create awareness and also reminds the customer about the product, hence, “screen to screen.”

JML Thailand, a joint venture between JML and TV Direct

+ TV Direct Indochina

Direct Response Television Co., Ltd TV Direct Lao Co., Ltd TV Direct (Malaysia)

• Sdn. Bhd.

TVDI Vietnam Co.,Ltd

TVDI co., Ltd

TVDI Vietnam Co.,Ltd TV Direct Lao Co., Ltd TV Direct (Malaysia) Sdn. Bhd. Direct Response Television Co., Ltd Cambodia

Myanmar: Wholesaler

+ TVD Shopping Co., Ltd.

Selling products/services through a dedicated 24 hours shopping channel with a unique presentation style combining rich presentation, various product rotations and attractive promotions. TVD Shop, a joint venture between MOMO, the number 1 home shopping company in Taiwan, and TV Direct, leader of Direct Marketing in Thailand

Platform Channel No. PSI 5, 95 Big 4 5 IPM 51, 52 GMMZ 5

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TVD Performance Q2, 2014 and 2Q, 2014

FINANCE PART

Performance indicator

2010 2011 2012 2013 2010 2011 2012 2013

2010 2011 2012 2013 2010 2011 2012 2013

Revenues From Sale & Service

MTBH

546.94 1,113.79 1,428.92 1,902.63 2,237.08 2,203.23 643.97 1,283.10 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 2010 2011 2012 2013 Q2 2Q

Gross Margin

329.45 675.53 835.76 1,129.07 1,256.24 1,322.38 372.43 757.68 0.00 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 2010 2011 2012 2013 Q2 2Q

MTBH

Net Profit

22.41 40.73 34.88 35.44 48.97 41.21 6.19 31.77 0.00 10.00 20.00 30.00 40.00 50.00 60.00 2010 2011 2012 2013 Q2 2Q

MTBH

Gross Margin Ratio & Net Profit Ratio

2.44% 1.86% 2.19% 1.87% 2.48% 58.49% 59.34% 56.16% 60.02% 59.05% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2010 2011 2012 2013 2Q/2014

546.94 1,113.79 1,428.92 1,902.63 2,237.08 2,203.23 643.97 1,283.10 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 2010 2011 2012 2013 Q2 2Q

2013 2014

Revenues From Sale & Service

CAGR 16.41% MTHB

QOQ(Q2)  17.74% YOY(2Q)  15.20%

SUSTAINABLE GROWTH

Q2,14 revenue from sales and services showed an increasing of THB 97 mil or 17.74% over Q2,13 2Q,14 revenue from sales and services showed an increasing of THB 169.3 mil or 15.20% over 2Q,13

329.45 675.53 835.76 1,129.07 1,256.24 1,322.38 372.43 757.68 0.00 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00

2010 2011 2012 2013 Q2 2Q

2013 2014

CAGR 17.21%

Gross Margin MTHB

QOQ(Q2) 13.04% YOY(2Q)  12.16%

SUSTAINABLE GROWTH

Q2,14 Gross margin showed an increasing of THB 42.98 mil or 13.04% over Q2,13 2Q,14 Gross margin showed an increasing of THB 82.15 mil or 12.16% over 2Q,13

22.41 40.73 34.88 35.44 48.97 41.21 6.19 31.77 0.00 10.00 20.00 30.00 40.00 50.00 60.00 2010 2011 2012 2013 Q2 2Q

2013 2014

CAGR 7.98% MTHB Net Profit

QOQ(Q2)  -72.39% YOY (2Q)  -21.99%

SUSTAINABLE GROWTH

2Q,14 Net Profit showed a decreasing of THB 8.96 mil or 21.99% comparing with 2Q13. As the result from sale promotion in May and June 2014 as to compensate the event of Coup d'etat’s period in order to maintain revenue from the airing restrained of TV marketing channel resulted in increasing in direct media expenses to sale revenue ratio from the event and cost of good sold ratio to sale during this period

Gross Margin Ratio & Net Profit Ratio

2.44% 1.86% 2.19% 1.87% 2.48% 58.49% 59.34% 56.16% 60.02% 59.05% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2010 2011 2012 2013 2Q/2014

Gross Profit Margin Net Profit Margin

SUSTAINABLE GROWTH

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Key Events

+ Key Events 2014 TVD Shopping Go Live

1

Fuji Media & Itochu

2

Indo-China

3

The Retail Expansion

4

Interim Stock Dividends

5

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Key Events: TVD Shopping Co., Ltd.

+ Key Event: MOMO

Home Shopping TVD Shop Go LIVE on June 26, 2014

TV Direct received a special transaction for spinning off a business to the Joint Venture

65% 35%

+ Key Event: TVD Shopping Co., Ltd.

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“ชอบ ช๊อป คุ้มชัวร์”

Platform Channel No. PSI 5, 95 Big 4 5 IPM 51, 52 GMMZ 5

TVD Shop, a joint venture between MOMO, the number 1 home shopping company in Taiwan, and TV Direct, leader

• f Direct Marketing in Thailand

+ Key Event: TVD Shopping Co., Ltd.

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+ Key Event: TVD Shopping Co., Ltd.

30

Fuji Media Holdings & Itochu Corp. Key Events:

+ Key Event: Itochu

2.43% 2.43%

+ Key Event: Itochu

32

• Mr. Chien-Kuo LAI

12.22% 2.43% 2.43% 7.36%

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Company Name ITOCHU Corporation Founded 1858 Incorporated 1-Dec-49 Representative Masahiro Okafuji, President and Chief Executive Officer Tokyo Headquarters 5-1, Kita-Aoyama 2-chome Minato-ku, Tokyo 107-8077, Japan TEL: 03-3497-2121 Osaka Headquarters 1-3, Umeda 3-chome, Kita-ku, Osaka, 530-8448, Japan TEL: 06-7638-2121 Offices 9 Domestic, 116 Overseas Common Stock ¥202,241 million Number of Employees 4,343 Main Business ITOCHU is involved in domestic trading, import/export, and

• verseas trading of various products such as textile, machinery,

metals, minerals, energy, chemicals, food, information and communications technology, realty, general products, insurance, logistics services, construction, and finance, as well as business investment in Japan and overseas. Stock Listings Tokyo, Nagoya, Fukuoka, Sapporo Transfer Agent of Sumitomo Mitsui Trust Bank, Limited Common Stock

Corporate Profile

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Expand and create business in the field of E-Commerce

+ Corporate Information

Company Name Fuji Media Holdings, Inc. Business A certified broadcast holding company Incorporated 18-Nov-57 Fuji Media Holdings, Inc. was established following the adoption of a certified broadcast holding company structure on October 1, 2008. Fuji Television Network, Inc. changed its corporate name to Fuji Media Holdings, and transferred its business operations to a newly established company also called Fuji Television Network, Inc. Capital ¥146,200 million Head Office 2-4-8, Daiba, Minato-ku, Tokyo 137-8088, Japan TEL: +81-3-3570-8000 (Switchboard) Representatives Hisashi Hieda, Chairman and Chief Executive Officer Hideaki Ohta, President and Chief Operating Officer Number of Employees (Consolidated basis) 6,234（As of March 31, 2014) Consolidated Net Sales ¥642,145 million (Year ended March 31, 2014)

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• Catalog Business
• TV Shopping Business

Supporting Existing Business

• Catalog and Mail
• Product sourcing
• Knowledge Transfer

Supporting New Business

• TV Contents
• Entertainments
• Expo & Exhibitions

+ Collaboration Plan: TVD – Fuji Media Holdings & Itochu Corp.

• 1. Products
• 2. Catalog/Mails
• 3. International Expansion

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Key Events: Indochina

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+ Key Event: Indo-China

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Key Event: The Retail Growth

+ Key Event: The Retail Growth

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Key Events: Interim Stock Dividends

+ Key Event: Interim Stock Dividends

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On August 13, 2014, BoD agreed to propose shareholders:

• Payment of stock dividend of 180,000,000 shares
• EGM meeting on September 24, 2014

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Net Profit

THB Million

+ Thank you