MEDIA PRIMA BERHAD FINANCIAL & BUSINESS REVIEW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER FEBRUARY 2013 INVESTOR BRIEFING

Transcription

1 MEDIA PRIMA BERHAD FINANCIAL & BUSINESS REVIEW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER FEBRUARY 2013 INVESTOR BRIEFING 1

2 TABLE OF CONTENTS Section Content Page MEDIA PRIMA BERHAD Section 1 Overview 3-6 Section 2 Performance Review 7 Section 2.1 Media Prima Group 8-11 Section 2.2 TV Networks Section 2.3 Print Media Section 2.4 Content Creation Section 2.5 Radio Networks Section 2.6 Outdoor Media Section 2.7 Digital Section 2.8 Corporate & Others Section 3 Conclusion

3 Section 1 OVERVIEW 3

4 MEDIA PRIMA BERHAD TODAY Television Broadcasting Print Media Outdoor Media Radio Content Creation Digital 100% 98% 100% 100% 100% 100% 100% 100% 100% 80% 100% 100% 100% 100% Media Prima Fact 31/12/2012 Issued and paid-up share capital Shareholders funds Total assets Cash Group borrowings PDS Ratings (RAM) RM1,079.7m RM1,547.3m RM2,668.2m RM682.4m RM682.7m AAAbg (MTN), P1 (CP) 4

5 INDUSTRY ADEX (MALAYSIA) NON DISCOUNTED GROSS REVENUE FY 2012 FY 2011 Source : AC Nielsen RM MILLION PAY TV FTA TV NEWSPAPERS RADIO OUTDOOR OTHERS TOTAL FY ,976 3,171 4, ,399 FY ,468 3,014 4, ,762 % Change 21 5 (1) 5 18 (5) 6 1. Nielsen s Adex numbers for PAY TV (as well as FTA TV) have not taken into consideration the discounting factor. Actual or cash Adex would be lower than Nielsen s reported numbers due to higher actual bonussing and discounting. 2. PAY TV is also a cheaper alternative as its rates are lower than that of FTA TV and Print 3. Inclusion of more paid channels will contribute to higher growth for PAY TV 5

6 REVENUE PERFORMANCE ADEX PERFORMANCE FY 2012 vs. FY 2011 Industry Adex Media Prima s Net Revenue Adex By Platform 5% 1% 3% 9% 5% 18% 13% 7% 6% 43% * Media Prima s Print and Digital consist of advertising revenue only. Nielsen s Digital adspend for 2012 is a pro-rated figure since Nielsen has discontinued tracking Digital numbers since July Our Print, Radio & Digital outperformed the market while TV & Outdoor show decent growth GROSS REVENUE PERFORMANCE QUARTER-BY-QUARTER RM Million 426 (6%) 399 5% % 4% Q1 Q2 Q3 Q4 6

7 Section 2.1 PERFORMANCE REVIEW MEDIA PRIMA GROUP 7

8 CONSOLIDATED RESULTS FY 2012 RM '000 FY 2012 FY 2011 % GROSS REVENUE 2,013,558 1,933,669 4 NET REVENUE 1,697,845 1,622,133 5 ROYALTIES (3,847) (3,753) (3) NET REVENUE AFTER ROYALTIES 1,693,998 1,618,380 5 DIRECT COSTS (546,662) (509,239) (7) CONTRIBUTION 1,147,336 1,109,141 3 OTHER INCOME 21,468 18, OVERHEADS (763,961) (723,116) (6) EBITDA 404, , FINANCE COSTS (27,451) (32,085) 14 DEPRECIATION AND AMORTISATION (102,373) (97,423) (5) PROFIT BEFORE ASSOCIATE 275, ,636 0 SHARE OF ASSOCIATE'S RESULTS 7,926 3,107 >100 PROFIT BEFORE TAX 282, ,743 2 TAXATION (71,967) (71,418) (1) PROFIT AFTER TAX 210, ,325 2 MINORITY INTEREST (2,000) (1,992) 0 NET GAINS FROM SUBSIDIARIES FOR SALE - 1,528 (100) GAIN ON DISPOSAL OF SUBSIDIARY ACQUIRED EXCLUSIVELY FOR SALE (54) PATAMI 209, ,585 1 EBITDA margin % 24% 25% PATAMI margin % 12% 13% Effective Tax Rate % 25.4% 25.7% 8

9 POSITIVE RECOVERY IN Q RM'000 % Q Q Q CHANGE A B C (B - A) (B - C) GROSS REVENUE 515, , , NET REVENUE AFTER ROYALTIES 436, , , DIRECT COSTS (139,285) (130,393) (109,429) 6 (19) CONTRIBUTION 296, , , OTHER INCOME 3,565-10, >100 >100 OVERHEADS (190,993) (228,268) (191,212) (20) (19) EBITDA 109, , , FINANCE COSTS (7,303) (5,416) (7,050) DEPRECIATION & AMORTISATION (25,540) (26,480) (22,268) (4) (19) PROFIT BEFORE ASSOCIATES 76,662 96,102 98, (2) SHARE OF ASSOCIATE'S RESULTS 2,027 2,275 (45) 12 (5,156) PROFIT BEFORE TAX 78,689 98,377 98, TAXATION (19,776) (25,092) (25,576) (27) 2 PROFIT AFTER TAX 58,913 73,285 72, MINORITY INTEREST (283) (474) (241) (67) (97) PATAMI 58,630 73,145 74, (2) EBITDA % 24% 27% 30% PATAMI margin % 13% 15% 17% Effective Tax Rate % 25.1% 25.5% 26.1% Q SHOWS POSITIVE RECOVERY Increase in ad spend for annual utilisation, fuelled by festive season and school reopening sales and ad spend by the Non Traditional Advertisers (NTAs) Revenue grew by 13% against Q and 11% against Q Uncertainty of the global as well as local market conditions resulted in cautious spending by advertisers. 9

10 MEDIA PRIMA GROUP FINANCIAL RESULTS BY MEDIA GROUP Outdoor Print Consol TVN Radio Media Media* Digital* Others Adjustment Total RM'000 Gross Revenue ,836 73, , ,641 32,185 26,627 (33,530) 2,013, ,334 68, , ,748 18,467 29,376 (25,652) 1,933,669 Growth % (9) (31) 4 Net Revenue (after royalties) ,640 62, , ,592 29,573 26,627 (15,749) 1,693, ,552 58, , ,971 17,217 29,376 (17,052) 1,618,380 Growth % (9) (8) 5 EBITDA Before EI ,573 28,238 50, ,948 2, ,370 (165,436) 404, ,062 30,298 49, ,051 (6,217) 309,067 (333,880) 404,144 Growth % (1) (7) 2 4 > Depreciation & Interest Expenses ,492 1,726 7,986 47,101 1,867 24,843 3, , ,364 1,814 9,052 41, ,215 4, ,508 Growth % (5) 5 12 (13) (92) (0) PBT / (LBT) Before Associate Before EI - Continuing Operations ,081 26,512 42,920 72, ,527 (169,245) 275, ,698 28,484 40,711 73,234 (7,190) 277,852 (338,153) 274,636 Growth % (2) (7) 5 (1) >100 (62) 50 0 *NSTP e-media s results consolidated under New Media 10

11 SUMMARY OF FINANCIAL HIGHLIGHTS Advertising Revenue 6% Ad revenue grew by 6% against YTD December 2011 mainly contributed by EUFA Euro 2012, Olympics 2012 and the Non Traditional Advertisers (NTA). Shortfall from ad revenue is due to the combination of seasonality effect as well as advertisers lacking spending power and uncertainties in the global economy. Despite a drop in the Adex in Q due to unfavourable economic condition, the Adex rebounded in subsequent quarters thus ensuring growth in revenue compared to Non- Advertising Revenue 0.7 % Other revenue grew by less than 1% against YTD December 2011 mainly due to the shortfall experienced by the Print Media in its overall circulation of newspapers. PWS TV Production revenue also fell short against YTD December 2011 due to savings in programme costs which resulted to lower mark up revenue. PWS Grand Brilliance lower revenue was due to deferment of films released pursuant to new Wajib Tayang rulings. EBITDA 0.2 % Shortfall in revenue was offset against cost savings in direct costs and higher other income leading to a positive growth in EBITDA against YTD December PATAMI 1% The Group recorded PATAMI of RM209.3 million against YTD December 2011 of RM206.6 million. Savings achieved via lower depreciation and full MTN repayment of RM100 million during the year contributed to greater PATAMI against YTD December Hence PATAMI is higher by 1% against YTD December

12 Section 2.2 PERFORMANCE REVIEW - TV Networks 12

13 TV NETWORKS FY 2012 RESULTS RM'000 % FY 2012 FY 2011 CHANGE A B A - B GROSS REVENUE 890, ,334 4 NET REVENUE (AFTER ROYALTIES) 708, ,552 3 DIRECT COSTS (210,122) (193,108) (9) CONTRIBUTION 498, ,444 1 OTHER INCOME 8,456 6, OVERHEADS (268,406) (260,824) (3) EBITDA 238, ,075 (1) INTEREST & DEPRECIATION (42,492) (40,364) (5) PROFIT BEFORE TAX 196, ,711 (2) TAXATION (40,181) (53,825) 25 PROFIT AFTER TAX 155, ,886 7 EBITDA margin % 27% 28% PAT margin % 22% 21% CONTINUE TO INVEST IN CONTENT 13

14 TV AUDIENCE SHARE FY 2012 Dominant Position Across All Stations/Channels 5% 6% 8% 26% 5% 7% <1% 4% 3% 1% 4% 2% 1% 2% 2% 1% Source: Nielsen Audience Measurement (4+) 14

15 TOP 10 CHANNELS WATCHED MPB channels remain the LEADER among key markets TOTAL 4+ CHINESE 4+ MALAY 15+ STN Jan-Dec 2012 STN Jan-Dec 2011 STN Jan-Dec 2012 STN Jan-Dec 2011 STN Jan-Dec 2012 STN Jan-Dec TV3 26 TV3 28 8TV 26 8TV 24 TV3 35 TV TV9 8 TV2 8 ntv7 18 ntv7 19 TV9 10 TV TV2 7 TV9 8 HUAHEE 8 HUAHEE 9 TV2 8 TV TV 6 8TV 6 WLT 7 WLT 6 TV1 7 TV1 8 5 TV1 5 ntv7 5 AEC 5 AEC 5 RIA 5 RIA 5 6 ntv7 5 TV1 5 TV2 4 TV2 4 PRIMA 4 PRIMA 5 7 RIA 4 RIA 4 XHE 3 XHE 3 CERIA 3 CERIA 3 8 SUN-TV 3 SUN-TV 4 TV3 3 TV3 3 WARNA 3 ntv7 2 9 PRIMA 3 PRIMA 3 SHX 2 TVBC 2 CITRA 2 8TV 2 10 CERIA 3 CERIA 3 TVBC 2 SHX 2 ntv7 2 WARNA 2 ALL CHANNELS- PAY TV & FTA TV Source: Nielsen Audience Measurement 15

16 TV ADEX SHARE BY STATION: FY 2012 vs FY 2011 RM 000 TOTAL RM'000 TV3 8TV ntv7 TV9 TOTAL TV1 TV2 AL Total MPB TVN HIJRAH 2012 Non Discounted Gross Revenue - % RM'000 1,325, , , ,858 2,741, , , ,171,148 Growth % 2 2 (4) Discount Factor - % * 60 * RM'000 (739,995) (410,717) (347,484) (352,360) (1,850,556) (67,356) (190,559) 0 (2,108,471) Gross Revenue - % RM' , , ,468 84, ,734 44, , ,062,677 Growth % 7 (8) (11) Non Discounted Gross Revenue - % RM'000 1,304, , , ,518 2,647,553 85, , ,013,881 Discount factor - % * 60 * RM'000 (758,295) (393,298) (352,006) (283,618) (1,787,218) (51,526) (168,269) 0 (2,007,013) Gross Revenue - % RM' , , ,339 70, ,334 34, , ,006,868 * Based on estimates 16

17 TOP 20 PROGRAMMES AMONG ALL STATIONS (PAY TV & FTA TV - ALL 4+) No. Programme Genre Station Viewership TVR Share 1 ANUGERAH BINTANG POPULAR BH(L) MUSICAL/ENTERTAINMENT TV3 4,728, ANUGERAH JUARA LAGU (L) MUSICAL/ENTERTAINMENT TV3 4,410, ANUGERAH SKRIN (LIVE) MUSICAL/ENTERTAINMENT TV3 3,481, MENTOR AKHIR(L) REALITY TV TV3 3,384, MENTOR REALITY TV TV3 2,651, NEW YR.MOV.SPEC. MOVIES TV3 2,619, MENTOR RAYA REALITY TV TV3 2,538, HUJUNG TAHUN T-HANTU K.LIMAH B MOVIES TV3 2,450, LESTARY DRAMA SERIES TV3 2,382, KONSERT AKHIR VOKAL BKN S.R(L) REALITY TV TV3 2,355, (L) DOCUMENTARIES/MAG TV3 2,251, BULETIN UTAMA NEWS TV3 2,213, HUJUNG TAHUN T-KUNGFU HUSTLE MOVIES TV3 2,210, TELEMOVIE ASK MOVIES TV3 2,121, PENGISTIHARAN H.RAYA AIDILADHA MISC TV3 2,082, NUZUL AL-QURAN SP MOVIES TV3 2,062, MOVIE SPECIAL MOVIES TV3 2,021, UCAPAN PM SEMP.HARI BELIA MISC TV3 1,972, CNY MOVIE SPEC MOVIES TV3 1,962, MOVIE RAYA MOVIES TV3 1,961, Source Nielsen Audience Measurement Remain top programmes among all genres except for Sports 17

18 Section 2.3 PERFORMANCE REVIEW Print Media 18

19 GROUP CONSOLIDATED RESULTS FY 2012 FY 2012 FY 2011 RM'000 Gross Rev enue 862, ,313 Net Revenue 732, ,536 Direct cost (233,233) (225,261) 499, ,275 Other operating income 8,138 8,587 Human resource cost (220,902) (205,668) Occupancy cost (19,651) (18,485) Ov erheads (138,143) (140,652) EBITDA 128, ,057 Depreciation (44,912) (41,770) Finance cost (2,504) (1,376) Profit before Associates 81,449 76,911 Share of results of associates 7,926 3,107 Profit before taxation 89,375 80,018 Taxation (22,187) (15,874) Profit after taxation 67,188 64,144 EBITDA Margin 17.6% 17.1% PATAMI Margin 9.2% 9.1% 19

20 AD & CIRCULATION REVENUE TREND Ad Revenue Trend Q Circulation Revenue Trend Q

21 NSTP - AUDITED CIRCULATION COPIES Jan - June Jan - June Jan - June ENGLISH NST 100,382 98, ,513 NSUT 108, , ,591 BAHASA BH 144, , ,400 BM 192, , ,925 HM 394, , ,161 MA 434, , ,331 Source: Audit Bureau of Circulations 21

22 GROWING CONTRIBUTION FROM THE MALAY MARKET Industry Adex NSTP Advertising Revenue Trend FY 2012 RM million 5% 1% 5% 18% 13% Media Prima s Net Revenue Adex By Platform Revenue Contribution FY % 9% 7% 6% 43% Despite the overall market contraction for print, our print Adex continues to grow, driven by the growing Bahasa market & our Group s strength in this sector. In line with growing readership, Malay language continue to grow its Adex market share. Malay newspapers will continue to be the main driver to revenue growth. 22

23 READERSHIP/ ADVERTISING REVENUE TRENDS Readership Trend By Language Print Adex Market Share By Language 8,000 7,000 6,000 5,000 4,000 3,000 ( 000) English Malay Chinese Tamil % , , English Chinese/Others Malay Readers ('000) Q Q Q ENGLISH New Straits Times New Sunday Times BAHASA Berita Harian 1,090 1,093 1,099 Berita Minggu 1,223 1,233 1,103 Harian Metro 2,831 3,654 3,695 Metro Ahad 3,046 3,872 4,061 (Source: Nielsen Consumer & Media View Q Q2 2012) 23

24 USD/MT NEWSPRINT PRICE TREND Despite the lower newsprint price, our newsprint costs have increased due to expansion to Sabah and Sarawak. Inventory months. Average cost - RM2,051/MT. 24

25 Section 2.4 CONTENT CREATION 25

26 FINANCIAL RESULTS FY 2012 RM'000 FY 2012 FY 2011 CHANGE % A B A - B NET REVENUE 119, ,112 (9) DIRECT COSTS (54,038) (52,304) (3) CONTRIBUTION 65,682 78,809 (17) OTHER INCOME 2,045 1, OVERHEADS 53, , SHARED COSTS 5,516 5,348 (3) EBITDA 9,061 (43,211) >100 FINANCE COST DEPRECIATION PROFIT BEFORE TAX 8,560 (43,844) >100 TAXATION 551 4, PROFIT AFTER TAX 8,009 (48,336) >100 EBITDA margin % 8% -33% PAT margin % (EXCL. EI) 7% -37% CONTINUE TO INVEST IN CONTENT 26

27 Q NEW PROGRAMMES 27

28 MAJOR TITLES RELEASED 28

29 NON-ADEX REVENUE VIA CONTENT sell to HO CHAK sell to Malay Islamic sitcom sell to For 2012, one of PWS s target key performance indicator (KPI) is to produce content which are to be sold to 3 rd parties 29

30 WHAT IS? EMAS is the first retro channel in Malaysia showcasing Media Prima's production of popular TV programmes of the yesteryear via Internet Protocol TV (IPTV) on HyppTV, Unifi TM. It features content from over 40,000 hours of archived material. Launched on June 1, Its primary target audience is Malay urban with high household income while the secondary target audience is mass market. 30

31 Section 2.5 RADIO NETWORKS 31

32 RADIO NETWORKS FINANCIAL RESULTS FY 2012 RM ' 000 % FY 2012 FY 2011 CHANGE A B A - B GROSS REVENUE 73,300 68,010 8 NET REVENUE 62,587 58,487 7 DIRECT COSTS (233) (178) (31) CONTRIBUTION 62,354 58,309 7 OTHER INCOME 1,222 1,219 0 OVERHEADS (35,338) (29,230) (21) EBITDA 28,238 30,298 (7) DEPRECIATION (1,726) (1,814) 5 PROFIT BEFORE TAXATION (PBT) 26,512 28,484 (7) TAXATION (3,328) (5,125) 35 PROFIT AFTER TAXATION (PAT) 23,184 23,359 (1) EBITDA m argin % 45% 52% PAT m argin % 37% 40% REGIONAL EXPANSION KELANTAN & TERENGGANU 32

33 RADIO - PERFORMANCE RATINGS #3 Overall Malay Source: Nielsen Advertising Information Service (AIS) 33

34 RADIO - PERFORMANCE RATINGS #2 Overall English #1 Chinese Radio for Age Source: Nielsen Advertising Information Service (AIS) 34

35 Section 2.6 OUTDOOR MEDIA BIG DRIVE expressways BIG RIDE transit BIG BUYretail BIG FLY airport 35

36 OUTDOOR FINANCIAL RESULTS FY 2012 RM'000 % FY 2012 FY 2011 CHANGE A B A - B GROSS REVENUE 168, ,386 6% NET REVENUE 156, ,829 6% DIRECT COSTS (90,118) (79,692) (13%) CONTRIBUTION 66,610 68,137 (2%) OTHER INCOME 1, % OVERHEADS (16,763) (19,175) 13% EBITDA 50,906 49,763 2% DEPRECIATION & AMORTISATION (8,044) (9,052) 11% PROFIT BEFORE TAX 42,862 40,711 5% TAXATION (11,000) (9,964) (10%) PROFIT AFTER TAX 31,862 30,747 4% EBITDA margin % 32% 34% PAT margin % 20% 21% 36

37 OUR OUTDOOR MARKET SHARE OF 44% Source: Company Search and Due Diligence 37

38 OUR OUTDOOR COVERAGE A. The Outdoor Division holds several exclusive outdoor media rights in: i. Expressways; ii. Transit lines; iii. Retail malls; iv. Airports; and v. Key city and town sites. B. The largest Outdoor company with presence all over Malaysia with 44% market share. More than 8,000 sites throughout Malaysia. C. New products and new markets - Digital screens - Premium locations 38

39 NEW HIGH-END PRODUCTS & PREMIUM LOCATIONS LEXUS (KLCC-PAVILION ELEVATED WALKWAY) KLCC CONVENTION CENTRE EXTENDED TUNNEL 39

40 Section 2.7 DIGITAL 40

41 FINANCIAL RESULTS FY 2012 RM'000 FY 2012 FY 2011 CHANGE A B A - B GROSS REVENUE 32,185 18, NET REVENUE 29,573 17, DIRECT COSTS (1,453) (1,028) 41 CONTRIBUTION 28,120 16, OTHER INCOME >100 OVERHEADS (25,995) (22,418) (16) EBITDA / (LBITDA) 2,244 (6,217) >100 DEPRECIATION (1,867) (973) (92) (LOSS) / PROFIT BEFORE TAX 377 (7,190) >100 TAXATION - - na (LOSS) / PROFIT AFTER TAX 377 (7,190) >100 EBITDA / (LBITDA) m argin % 8% (36%) (LAT) / PAT margin % 1% (42%) % 41

42 ONLINE PORTALS : MPB WEBSITE RANKINGS Top 10 Malaysian Sites DECEMBER 2011 DECEMBER 2012 Site Rank Total Unique Visitors ( 000) Rank Total Unique Visitors ( 000) MUDAH.MY 1 2, ,813 Media Prima Group 2 2, ,346 Maybank Group 3 1, ,982 Maxis Group 4 1, ,372 Star Publications (M) Bhd 5 1, ,327 CIMB Group 7 1, ,189 Tune Group 6 1, ,152 LOWYAT.NET ,112 CARI.COM.MY 8 1, ,085 Malaysiakini Sites 9 1, SOURCE: comscore Key Measures MEDIA PRIMA GROUP IS RANKED #2 IN DECEMBER

43 VIDEO VIEWS & POPULAR PROGRAMS 2.38 million registered users 2.6 million registered users 43

44 DIGITAL PAPER Digital version of print. For ipad, Android & Web Browser. Launched on 1 July

45 Section 2.8 CORPORATE & OTHERS 45

46 CORPORATE & OTHER BUSINESSES FY 2012 Consol MPB Content Distribution Others Adjustment Total RM'000 Gross Revenue ,722 5,905 (33,530) (6,903) ,706 5,670 (25,652) 3,724 Growth % N/A (13) 4 31 (>100) Net Revenue (after royalties) ,722 5,905 (15,749) 10, ,706 5,670 (17,052) 12,324 Growth % N/A (13) 4 8 (12) EBITDA Before EI , ,236 (165,436) (35,066) ,150 6,142 (225) (333,880) (24,813) Growth % > (41) Depreciation & Interest Expenses , ,809 28, , ,273 35,488 Growth % 20 NA (20) PBT / (LBT) Before Associate Before EI , ,702 (169,245) (63,718) ,603 6,142 (893) (338,153) (60,301) Growth % >100 (50) (6) 46

47 Section 3 CONCLUSION 47

48 CONTINUED IMPROVEMENT IN FINANCIAL PERFORMANCE Net revenue (million) ,547 1,618 1,694 EBITDA before EI (million) PBT (million) PATAMI Continuing Ops Before EI (million) Weighted average number of shares (million) EBITDA margin excl. EI (%) EPS excluding EI (sen) Accumulated losses (million) , , (525) (410) (106) (81) 9.7 NTA (million) ,093 1,191 Gross gearing ratio The Group is in a retained earnings position as at 31 December Source: Media Prima financials 48

49 PROPOSED DIVIDEND FYE 2012 Proposed final single tier dividend of 7.0 sen for FYE 31 December 2012 (subject to shareholders approval at the forthcoming AGM) Final Dividend for FYE 2012 PATAMI (RM'000) 209,312 PATAMI - Continuing operations (RM'000) 208,978 Estimated Share capital ('000) as at entitlement date 1,179,144 Proposed Final Dividend (RM'000) 82,540 Final Single Tier Dividend per share (sen) subject to approval by members at AGM 7.00 First Interim Single Tier Dividend per share (sen) paid on 28 September 3.00 Second Interim Single Tier Dividend per share (sen) paid on 28 December Total (sen) Dividend* Yield 5.6% Dividend* Pay-Out Ratio (over PATAMI) 70.4% Dividend Pay-Out Policy (over PATAMI) 25% to 75% * Excludes special dividends 49

50 CONCLUSION 2012 has been a challenging year. Uncertainty of the global economy and speculation on the impending general election has impacted advertisement spending. The Group recorded EBITDA of RM404.8 million and PATAMI of RM209.3 million. The Group recorded a slight growth in PATAMI of 1% compared to the corresponding period last year, a moderate growth reflecting the challenges faced in Despite the slower sales in Q1 2012, TV networks topline numbers grew by 4% against YTD December 2011, boosted by the Non Traditional Advertisers (NTAs); - Despite industry print Adex 1% contraction against 2011, NSTP s advertising revenue grew by 9% against YTD December 2011, driven by the growing Bahasa market and the Group s strength in this sector. - Radio Networks topline numbers grew by 8% against YTD December Radio Networks saw a strengthening share in the Chinese market segment in One FM and the East Coast segment; - Outdoor registered a revenue growth of 6% with increased contributions from display rental and production revenue; and - Digital s revenue achieved a 74% growth against YTD December 2011, mainly contributed by increase in TV Networks catch-up charges and maximising the utilisation of Tonton s video inventory. The Group is committed to maintain its industry leadership position and earnings growth through continued investment in quality and relevant content. 50

51 AN INTEGRATED MEDIA GROUP TV NEWSPAPER LARGEST reach in terms of TV viewership RADIO LARGEST reach in terms of newspaper circulation and readership in Peninsular Malaysia #2 nd LARGEST reach in terms of combined radio channel listeners numbers NSTP S OUTDOOR One of the LARGEST share of advertising revenue in the outdoor media industry DIGITAL Media avenue reaching out to INTERNET based viewership CONTENT CREATION < Boasts the Widest Multimedia Distribution Offering on a Single Integrated Platform > 51

52 Note: The presentation may contain forward-looking statements which are based on MPB's current expectations, forecasts and assumptions based on management's good faith expectations and belief concerning future developments. In some cases forwardlooking statements may be identified by forward-looking words like would, intend, hope, will, may, should, expect, anticipate, believe, estimate, predict, continue, or similar words. Forward-looking statements involve risks and uncertainties which could cause actual outcomes and results to differ materially from MPB's expectations, forecasts and assumptions. We caution that these forward-looking statements are not statements of historical facts and are subject to risks and uncertainties not in the control of MPB, including, without limitation, economic, competitive, governmental, regulatory, technological and other factors that may affect MPB's operations. Unless otherwise required by law, MPB disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Although we believe the expectations reflected in forward-looking statements are reasonable we cannot guarantee future results, levels of activity, performance or achievements. 52

53 APPENDIX 53

54 FOR THE YEAR FOR THE YEAR ENDED ENDED RM'000 RM'000 Cash flow from operating activities Receipts from customers 1,729,791 1,708,833 Payments to employees and suppliers (1,330,320) (1,356,483) Income tax paid (51,581) (61,160) Net cash inflow arising from operating activities: - Continuing operation 347, ,190 - Subsidiaries held-for-sale - (16,357) Net cash flow from operating activities 347, ,833 Cash flow from investing activities Purchase of property, plant & equipment (96,899) (91,929) Interests received 9,141 8,538 Dividend received Acquisition of subsidiaries, net of cash acquired (2,269) (2,723) Proceeds from disposal of property, plant and equipment 1, Proceeds from disposal of investment 3,378 - Proceeds from disposal of investment properties 2, Proceeds from subsidiaries held for sale - 7,608 Net cash flow from investing activities : - Continuing operation (82,216) (77,337) - Subsidiaries held-for-sale (3) Net cash flow from investing activities (82,216) (77,340) Cash flow from financing activities Proceeds from issuance of shares 20, ,904 Repayments of hire purchase (5,403) (7,383) Interests paid (25,404) (29,476) (Increase)/Decrease in restricted fixed deposits (10,466) (12,612) Drawdown of short term borrowings 153, ,445 Repayment of term loan (14,000) (14,000) Net drawdown/(repayment) of MTN 200,000 (70,000) Repayment of RC (156,412) (83,492) Dividends paid (206,383) (97,873) Net cash flow from financing activities : - Continuing operation (43,858) (78,487) - Subsidiaries held-for-sale (31) Net cash flow from financing activities (43,858) (78,518) Net increase in cash and cash equivalents 221, ,975 Foreign exchange differences on opening balances - - Cash and cash equivalents at beginning of period 424, ,942 Cash and cash equivalents at end of period* 646, ,917 * Net of restricted cash balance 54

55 AS AT AS AT RM'000 RM'000 Non Current Assets Property, plant and equipment 748, ,423 Investment properties 62,056 65,207 Associates 163, ,019 Prepaid expenditure 1,571 1,855 Intangible assets 375, ,455 Deferred tax assets 97, ,973 Investments available-for-sale 2,525 1,400 1,451,667 1,470,332 Current Assets Other investments 90 3,318 Inventories 84, ,753 Receivables, deposits and prepayments 435, ,800 Tax recoverable 14,265 14,136 Deposits, bank and cash balances 682, ,096 1,216, ,103 Non-current assets held for sale TOTAL ASSETS 2,668,170 2,463,615 Non Current Liabilities Payables Borrowings 452, ,988 Deferred tax liabilities 70,297 70, , ,071 Current Liabilities Payables 343, ,169 Borrowings 230, ,609 Taxation 4,295 8, , ,200 TOTAL LIABILITIES 1,101,440 1,000,271 Equity and Reserves Share capital 1,079,692 1,068,151 Reserves 467, ,308 Equity attributable to equity holders of the Company 1,547,290 1,443,459 Non-controlling interest 19,440 19,885 Total equity 1,566,730 1,463,344 TOTAL LIABILITIES AND EQUITY 2,668,170 2,463,615 Net Assets per share attributable to equity holders of the Company (sen)