MEDIAPLEX INVESTOR RELATIONS 2013

Transcription

1 MEDIAPLEX INVESTOR RELATIONS 2013 SHOWBOX 2013 Ticker KS

2 Disclaimer This presentation has been prepared by Mediaplex Inc. ( The Company ) This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented. The Company, its affiliates, advisers or representatives accept no liability whatsoever for any losses arising from any information contained in the presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment. The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.

3 Unit :USD Billions MOVIE INDUSTRY REVIEW Global Film Industry Global box office growth rate $34.7 $31.6 $32.6 $27.7 $ US box office Global box office (65%) (64%) (66%) (69%) (69%) Source: KOFIC, Mediaplex Box office Rank by country in 2012 Unit :USD 0.1Billions Rank Country Account 1 US China 24 3 Japan 24 4 England 17 5 France 17 6 India 14 7 Germany 13 8 Korea 13 9 Russia 12 : : : Total 347 Source: KOFIC, Mediaplex Still Growing Stage & bounds of Global Films expected Korea, Global box office weight of 4% Ranked world s 8 th in 2012

4 MOVIE INDUSTRY REVIEW Korea Film Industry Korea box office growth rate Unit: Admissions in ten thousands people Korea movie return on investment Korea Flim Foreige Flim Total Flim 19,489 Return on investment 13% 15,083 15,679 14,680 15,885 16, ,729 8,032 7,851 8,268 11,461 9, % -11% % 6,354 7,647 6,829 7,617 8,027 6,687 Source: KOFIC, Mediaplex % Source: KOFIC, Mediaplex 2008 년 2009 년 2010 년 2011 년 2012 년 2013 년 3Q Korea film market share in 2012 M/S 58.8% (YoY 17.7%) 3 Quarter Cumulative in 2013 M/S 59.6%

5 MOVIE INDUSTRY REVIEW Mediaplex, box office Market Share 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Domestic Top class Distribution Company Mediaplex M/S (Kor film) 15.60% 21.50% Kor film Rank NO.2 (2012) in strong competition 23% Q Source: Mediaplex Average admission per film Reference Company C and L runs biggest multiplex theater Mediaplex CJ E&M NEW LOTTE Unit: Admissions in ten thousands people Q Despite the absence of theater, Showbox maintained 97% higher average number of admission per film than No1. player, Company C Mediaplex, the most influential Distributor in Korean film industry is considered to be one of the major investor. 97% Source: Mediaplex

6 MOVIE INDUSTRY REVIEW Revenue structure Main Market Sub Market Source Total Box Office revenue 50% 50% Receive 50% of the ticket revenue from Theater Profit from ancillary market 50% 50% Stage1 Share of the ticket revenue Exhibitor (Theater) Distributor Platform (IP TV, VOD) Distribution fee of around 10% is deducted Stage2 Sales/Cost recognition Main Investors The cost of remaining revenue used for production And Marketing are recouped 60% of the net profit is distributed to each investor 40% of the net profit is distributed to productor Stage3 Profit share Main Investors Sub Investors Sub Investors Production Company If loss, only the investor recognizes Source: Mediaplex

7 MOVIE INDUSTRY REVIEW Ancillary market : Digital online market (Unit : O.1 Billion won) % Primary sales Secondary sales ~ 2012 each Item CAGR % 1219 Distribution MDIAPLEX Tertiary sales Exhibition 888 Each platform 29% Source: KOFIC, Mediaplex IP TV DVD AIR TV VOD Export Ancillary industry Now main platforms such as IP TV, VOD and Smart Devices is rapidly growing.

8 MEDIAPLEX REVIEW Mediaplex Corporate governance Structure Corporate governance Stockholder activity Main share holder Institutional Investor etc 57.5% 38.50% Orion Corp % 62.66% 11.23% 100% 4% Supreme Star Investment Limited (HK) Supreme Star Holdings Limited (HK) Company type Corporation 100% Orion Consult ing Co., Ltd. Beijing Zhongguan Megabox Cinema Co., Ltd. 49% 100% 49% Beijing Supreme Star Consulting Co., Ltd. Hubei Radio & TV Mega Trading Co., Ltd. Source: Mediaplex Company Mediaplex.inc. President Jeong hun You Establishment 10 June, 1999 Parent company Orion Corp. listing 7 July, 2006

9 MEDIAPLEX REVIEW Business structure change Return on investment in Korea movie market 13% 7.90% 3.10% Source: KOFIC, Mediaplex % % % -11% % % % Flim market business entry ROI NO.1 M/S NO.1 IPO M&A restructuring Business structure change Stocks rise rate No.1 in half of 2013 Establishment Admission top increase record Merger (3,300 Million ) Distribution Business be Extension of influence Motion 101 Establishment Disposal Of Subsidiary Motion 101 liquidation - Human restructuring - Quality of Films management system building - Oversea market expansion policy through Foreign strategic partnership (YoY 2012) Sales 79.6% rise Op 176% rise Profit per film 152% rise

10 MEDIAPLEX REVIEW Subsidiary : 秀星集團有限公司 (Supreme Star Holdings Limited) Partner Hubei TV & Radio Station # of Ch. 9 TV Ch, 10 Radio Ch. Location Hubei Province Coverage 6Mil. Households TV Home Shopping Hubei TV & Radio Mega Trading TV home shopping Business in china Paid in Capital : RMB 188,240,000 Ownership (Stockholder activity) - Hubei TV : 51% - Supreme Star Holdings Limited : 49% 秀星集團有限公司 : China company name (Mediaplex 100% subsidiary) Shopping Channel : City Channel Establishment: January 29, 2008 Membership : Million people exceed Market Status of Hubei Province - GDP: RMB 1.95 Trillion (USD 311 Billion) - TV shopping Channel owned by Hubei TV Business Plan - Raising coverage to all 6mil. Households in Hubei - Using Internet / DM parallel with Broadcasting - Expand to other province & builds up JV Source: Mediaplex

11 MEDIAPLEX REVIEW Subsidiary : Supreme Star Investment Limited Partner Beijing Mega Media Ltd. Site 3 Location Beijing, Shenyang Theater business Beijing Zhongguan Megabox Cinema Film Exhibtion in China Paid in Capital: RMB 16,800,000 Ownership: Beijing Mega Media Ltd. 51% Supreme Star Investment Limited 49% (Orion 62.66%, Mediaplex 11.23%) Establishment: December 13, 2007 Site open - 1 st Site Beijing Zhongguancun July, nd Site Beijing Sanlitun July, rd Site Shenyang Wanxiangcheng June, 2011 Source: Mediaplex

12 MEDIAPLEX REVIEW The Award at a Film festival 50 th DAEJONG Film Awards 2013 ( 大鐘賞映畵祭 ) Mediaplex film won eight Daejong Awards - The best film award - The best director s award - The best actor award - The best supporting actor award - The best dress award - The Popularity award - New director s award - New actor award Reference Daejong Awards is Film awards of korea similar in Academy Awards

13 MEDIAPLEX INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS A Friendly Government Policy for Movie Industry Attractive Growth Opportunities in Korea market Leading Distributor in an Industry with Improving Fundamentals Positive Economics Driven by Industry Trends Increasing Market Dominance in Domestic Strong Capital Structure with Significant Liquidity & Free Cash Flow Well-Organized Management Team and Proven Equity Holder Oversea Expansion into Movie Business (Utilizing Global partner Networks) Expand Business Sector of Production

14 MEDIAPLEX FINANCIAL INFORMATION Revenue and Profits Unit : million won Sales 87,972 Operating Profit 9,683 4,428 2,474 29,673 45,008 27,083 48,961 41, Q -1,324-5, Q -21,935 B/S in Half of 2013 Source: Mediaplex Reference CJ E&M B/S - Movie business sector Source: Mediaplex The competitor compare analyze - Balance Sheet in half of 2013 Company C is higher than showbox in sales, but operating profit is comparable level. Unit : in 0.1billion won Source: CJ E&M Q management performance, Mediaplex

15 MEDIAPLEX FINANCIAL INFORMATION Balance Sheet Assets 188 billion won Non-current Assets 48.1 Liabilities 84.9 Unit : in billion won Investment withholding 49 billion (58%) Short-term borrowings 3 billion (4%) 350% 300% 250% 200% 150% 100% 50% 0% Current ratio 283% 297% 252% 207% 166% Source: Mediaplex Current Assets Cash assets 11% Equity Total % 80.0% 70.0% Debt ratio and Borrowings and Bonds Payable Ratio 82.5% Debt ratio 60.0% 50.0% 40.0% Borrowings and Bonds Payable Ratio Assets Liabilities + Equity 30.0% 35.6% 36.3% 20.0% 10.0% 0.0% 27.2% 25.6% 3% 0% 0% 0% 0% Source: Mediaplex

16 MEDIAPLEX FINANCIAL INFORMATION Balance Sheet Profit and loss status 2Q Q Y 2011Y Net sales Gross margin Operating income Non-operating income Non-operating expenses Financial income Financial costs Net income before income tax expenses Net income [Unit : In 0.1 billions of KRW] Financial status 2Q Q Y 2011Y Total assets 1,803 1,593 1,813 1,284 Current assets 1,399 1,044 1, Non-current assets Total liabilities Capital stock Capital surplus Retained earnings Total shareholders' equity 1,063 1, ,010 [Unit : In 0.1 billions of KRW]

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