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Listed and traded on the Indonesia Stock Exchange STOCK CODE: MNCN. PT Media Nusantara Citra Tbk. Corporate Update June 2013. Disclaimer.

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Listed and traded on the Indonesia Stock Exchange


PT Media Nusantara Citra Tbk.

Corporate UpdateJune2013


By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

The information and opinions contained in this presentation are intended solely for your personal reference and are strictly confidential. The information and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Neither the company (including any of its affiliates, advisors and representatives) nor the underwriters (including any of their respective affiliates, advisors or representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising from any use of this presentation.

In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those forecast and projected.

This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the company.

Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer document issued in respect of such securities.

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.


Section 1

Indonesia’s Media Industry Update

Section 2


of Content

MNC Update

Section 3

Financial Update MNC



Indonesia’s Media Industry Update

macro drivers support industry growth
Macro drivers support industry growth

Population (2012)

A Young Population : 80% - Below 50yr

What are the macro drivers?


  • A large & young population
  • 200mn people below age of 50
  • A rising middle class
  • Strong economic growth driven by domestic consumption
  • 36mn TV household
  • Only 4% of population has university degrees
  • Indonesians prefer to watch TV than to read, watching 5 hours of TV per day.

Source: Indonesia Bureau of Statistics 2012

Source: MPA 2011

Completed Education Level

Monthly Household Expenditure (Rp1,000)

Source: Indonesia Bureau of Statistics 2012

Source: Nielsen Media Research

indonesia s ad spend growth highest in region
Indonesia’s ad spend growth highest in region
  • Media Partners Asia forecasts net ad spend growth of 15.8% in 2013
  • Growth is among the highest in the region
  • Indonesia’s ad spend is growing from a small base; we expect growth to be sustainable

Asia Pacific Net Adspend (2011 – 2013F)

Asia Pacific Net Adspend Growth (2011-2013F)

In USD billion

Source: Media Partners Asia 2012


Well Positioned in a Conducive Growth Environment

  • Net adspend as % of GDP is the lowest in the region indicating solid growth potential
  • The price for a 30 seconds prime time spot is cheap compare to other ASEAN countries

Net Adspend as a Percentage of GDP (2011)

Price of 30 seconds prime time spot in the region

In USD/spot

Source: Media Partners Asia 2012


Industry Dynamics

  • Prime time advertising slots are limited; strong demand for advertising
  • Local brands have been aggressive in advertising to compete with multi national companies
  • We expect automotive and financial companies to increase TV advertising budget

Limited supply: Only 10 FTA TV stations

Demand (More brands advertising on TV)

Source: Nielsen Prime time all demographic May 2013


Low Penetration Rates in Key Segments

Asia Pacific TV Penetration of Total Households (2010F-2014F)

Newspaper Circulation in Indonesia

Internet Household Penetration in Indonesia


Source: Media Partners Asia 2010

Source: Media Partners Asia 2010


Indonesia’s Media Advertising Market Share

  • Given the infrastructure constraint, TV is the only medium to reach a mass audience. TV advertising is expected to maintain a dominant market share
  • Online advertising to take market share from Newspaper and Magazine



Source: Media Partners Asia 2012


Section 2

MNC Update

t he largest integrated media company in indonesia
The Largest Integrated Media Company in Indonesia

Sindo Media



Free-To-Air TV

Local TV Network

MNC Pictures

Star Media Nusantara


Tabloid & Magazine

Tabloid & Magazine


Global TV


MNC Networks


MNC Channels

National & Regional


News Portal

Sindo Weekly

More channels will be added

Content llibrary contains more than 130,000 hours and increasing by more than 15,000 hours per year


Dominant TV Player in Indonesia

MNC ad revenue growth outperforming the industry

MNCTV is under earning VS competitors

Opportunity for

ad rate increases

  • RCTI has consistently been the # 1 TV station in Indonesiasince its inception in 1989.
  • RCTI, MNC TV and Global TV cumulatively control 40%audience shareduringprime time
  • In 2012, our group experienced 22.0% advertising revenuegrowth,outperforming the industrygrowth rate of 15.5%, driven by RCTI and MNC TV
  • Change in programming strategy paid off at MNC TV. Viewership ranking jumped to #2 in 2012 from #6 in 2011. We see considerable scope for increased advertising revenue at MNCTV as ad rates are still much lower compare to RCTI
  • Focus is now to turnaround Global TV

2012 advertising revenue growth


Creating the best content is our top priority

Content is King

“Content is where I expect much of the real money will be made on the Internet, just as it was in broadcasting.

The television revolution that began half a century ago spawned a number of industries, including the manufacturing of TV sets, but the long-term winners were those who used the medium to deliver information and entertainment.”

“Content is King” by Bill Gates in 1996

  • Content is the only way to capture audience share and monetize advertising dollars
  • Indonesians love “Sinetrons” and we broadcast many of the top drama series
  • We have licensed popular International programs such as Master Chef, Indonesia Idol and X Factor
  • Exclusive programming with top Hollywood studios
  • More than 120,000 hours of content library and increasing by more than 15,000 hours annually
  • We also have 16 MNC branded Pay TV Channels. These channels are integral to our content strategy

Primetime Nielsen TV stations ranking

Source: Nielsen Monthly Prime Time All Demographic Audience Share


MNC’s TV Programs Dominate in all Genre

Number of MNC’s Programs in the Top 20 for National FTA TVs (January to December 2012)

All Programs








Talent Search




Source: Nielsen


The most comprehensive Pay TV Channels lineup

  • We have the most comprehensive Pay TV channel lineup in Indonesia
  • Our customers prefer local content
  • Producing content in Bahasa Indonesia is our competitive advantage
  • We generate subscription revenue and advertising revenue

means it is the leader in its Pay TV category

pay tv channels to drive ad revenue for mncn
Pay TV Channels to drive ad revenue for MNCN


MNC Channels share of Pay TV audience in 1Q 2013

  • MNCN has produced and packaged 17 Pay TV channels exclusively for MNC Sky Vision. In return MNCN receives 100% ad revenue
  • MNC Sports, MNC Entertainment, MNC News and MNC Business are # 1 ranked in their respective categories versus International peers
  • MNC Food & Travel was recently launched. We will add 3 more channels: MNC Kids, MNC Home and MNC Wedding
  • We expect MNC Channels to generate meaningful advertising revenue as subscribers grow

Source : Nielsen TV Audience Measurement 1Q 2013


strong market position with superior content capabilities cont d

Strong Presence in Print Media

Leading Radio Stations in Indonesia

Strong Market Position withSuperior Content Capabilities (cont’d)
  • In 5 years following the launch in 2005, Seputar Indonesia has become the 2nd largest newspaper in Jakarta and the 3rd largest in Indonesia
  • The remaining 5 of the top 6 newspapers in Indonesia have been in circulation for more than 30 years on average
  • Tabloids / magazines published by us are popular among readers
    • Genie is the third largest tabloid by readership
  • 36 radio stations in 4 different formats consistently ranked #1 or 2 in their respective genres / targeted audience
    • Sindo Radio - #1 news station
    • Radio Dangdut Indonesia - #2 station for middle / low income segments
    • ARH Global - #1 choice amongst young listeners
    • V Radio – female radio station

Source: Nielsen Media Index, figures refer to circulation in Jakarta only

Source: Nielsen Media Research


Section 4

Financial Update MNC

(Audited FY 2011 & 12M 2012)


Financial Performance from 12M 2010 (Audited) until 12M 2012 (Audited)

12M 2010 to 12M 2012 Financials

IDR trillion

CAGR +5%

CAGR +16%

CAGR +14%

CAGR +30%

12M 2010 to 12M 2012Solvency Metrics

Source: Company Financials


segmental overview revenue
Segmental Overview – Revenue

12M 2012

Split by TV Network

12M 2011

Split by TV Network

segmental overview ebitda
Segmental Overview –EBITDA

12M 2012

Split by TV Network

12M 2011

Split by TV Network




financial performance from 4 m 201 1 until 4 m 201 3
Financial Performance from 4M 2011 until 4M 2013

4M 2011to 12M 2013Financials

4M 2011to 4M 2013 Solvency Metrics

segmental overview revenue 4m 2013 4m 2012
Segmental Overview – Revenue 4M 2013 & 4M 2012

Revenue 4M 2013

Revenue Contribution By TV Network

Revenue 4M 2012

Revenue Contribution By TV Network

ebitda per segment 4m 2013 4m 2012
EBITDA Per Segment 4M 2013 & 4M 2012

EBITDA 4M 2013

EBITDA Contribution By TV Network

EBITDA 4M 2012

EBITDA Contribution By TV Network