AGM Presentation 19 April 2012

MEDIA PRIMA BERHAD
ANNUAL GENERAL MEETING
Financial & Business Review
For the Financial Year Ended
31 December 2011
19 April 2012
1
TABLE OF CONTENTS
SECTION 1 PRIMA
OVERVIEW
MEDIA
BERHAD
SECTION 2
PERFORMANCE REVIEW
SECTION 3
DIVIDENDS
SECTION 4
CORPORATE GOVERNANCE & CORPORATE
RESPONSIBILTY
SECTION 5
OUTLOOK FOR 2012 & BEYOND
2
Section 1
OVERVIEW
3
MEDIA PRIMA BERHAD TODAY
Television
Broadcasting
Print Media
Outdoor Media
98%
Radio
80%
Content
Creation
100%
New
Media
100%
100%
100%
100%
100%
100%
100%
100%
100%
95%
100%
Media Prima Fact Sheet @ 31/12/2011
Issued and paid-up share capital
RM1,068.2m
Shareholders funds
RM1,363.8m
Total assets
RM2,414.4m
Cash
RM450.1m
Group borrowings (Inclusive of Hire Purchase)
RM503.6m
PDS Ratings (RAM)
AAAbg (MTN), P1 (CP)
4
TOTAL REACH UNDER MEDIA PRIMA PLATFORMS
TV NETWORKS/PORTALS
VIEWERS (Mil)
5.525
2.200
0.901
0.935
RADIO NETWORKS
LISTENERS (Mil)
3.500
0.702
0.700
OUTDOOR
TRAFFIC (Mil)
2.000
PRINT
Media Prima, through
all our platforms,
reaches out to nearly
24 million audiences
from all ages and walks
of life in the country
daily.
READERS (Mil)
0.240
1.035
3.722
NEW MEDIA
REGISTERED SUBSCRIBERS (Mil)
2.040
TOTAL
23.5Mil
5
Section 2
PERFORMANCE REVIEW
6
Section 2.1
MEDIA PRIMA GROUP
7
CONSOLIDATED RESULTS FYE 2011
RM'000
FY 2011
FY 2010
A
B
Gross revenue
Net revenue
Royalties
Net revenue after royalties
Direct costs
Contribution
Other income
Overheads
EBITDA before EI
Finance costs
Depreciation & amortisation
Profit before associate
Share of associate's results
Profit before tax before EI
Exceptional items ("EI")
Profit before tax
Taxation - Operation
- EI & DTA
Profit after tax
Non-controlling interests
PATAMI - Including EI
Net gains/(losses) from subsidiaries held
for sale
Gain on disposal of subsidiary acquired
exclusively for sale
PATAMI - Including EI
PATAMI excluding EI - Continuing
operations
EBITDA excl EI Margin
PATAMI excl EI Margin
1,933,669
1,622,133
(3,753)
1,618,380
(509,239)
1,109,141
24,928
(727,757)
406,312
(32,085)
(94,670)
279,557
2,127
281,684
(2,168)
279,516
(72,106)
207,410
(2,012)
205,398
1,528
%
CHANGE
(A-B)
1,842,876
1,546,643
(3,651)
1,542,992
(494,477)
1,048,515
21,275
(676,148)
393,642
(32,597)
(100,007)
261,038
6,196
267,234
28,077
295,311
(73,711)
29,018
250,618
(6,732)
243,886
5
5
(3)
5
(3)
6
17
(8)
3
2
5
7
(66)
5
>100
(5)
2
(1,592)
>100
(17)
70
(16)
724
207,650
242,294
100
(14)
205,398
25%
13%
185,333
25%
12%
11
8
FINANCIAL HIGHLIGHTS OF 2011 CONSOLIDATED RESULTS
Net Revenue
Direct Cost
Overheads
+ 5%
+ 3%
+ 8%
EBITDA Before EI
+ 3%
PBT Ex EI
+ 5%
PATAMI Ex EI – Cont Ops
+ 11%
RM1.6 bil
RM509.2 mil
RM727.8 mil
RM406.3 mil
RM281.7 mil
RM205.4 mil
9
MEDIA PRIMA GROUP REVENUE BY PLATFORM
FY 2011
FY 2010
Revenue Contribution FY 2011
Outdoor
9%
New Media
Radio 1%
Revenue Contribution FY 2010
Others
1%
4%
Outdoor
9%
Print
Circulation
17%
Print
Circulation
19%
TVN
42%
Print Ad
26%
TVN
Print Adex
Print Circulation
Radio
4% New Media Others
1%
1%
TVN
42%
Print Ad
24%
Outdoor
Radio
New Media
Others
TVN
Print Ad
Print Circulation
Outdoor
Radio
New Media
Others
10
FY 2011 RESULTS BY MEDIA PLATFORM
TV NETWORKS &
CONTENT CREATION
RADIO NETWORKS
PRINT MEDIA
 Revenue grew 6%
 Revenue dropped by 9%
 Revenue grew by 4%
 EBITDA and PBT grew by 10%
and 11% respectively
 EBITDA & PBT dropped by 6%
 EBITDA and PBT declined by 1%
and 3% respectively
OUTDOOR MEDIA
 Revenue grew by 12%
 EBITDA & PBT increased by 0.4%
and 1% respectively
GHANA
 The disposal of TV3N was
completed in September 2011
whilst the other 3 operating
entities were disposed in
December 2011 realising a net
gain of RM724k
NEW MEDIA
 Revenue dropped by 6%
 LBITDA & LBT both higher than
YTD Q4 2010 to accommodate
TonTon’s gestation period.
Note: The above excludes EI & Associates results
11
CONTINUED IMPROVEMENT IN FINANCIAL PERFORMANCE
2003
Net revenue
**
2008
(RM million)
2009
2010
2011
279
781
744
1,543
1,618
77
208
156
394
406
PBT
184
159
276
295
280
PATAMI before EI
PATAMI After EI
(89)
169
121
118
74
252
185
242
205
208
170.31
845.48
857.65
985.82
1,049.54
28
27
21
26
25
14.26
8.61
18.80
19.57
EBITDA before EI
Weighted average
number of shares (m)
EBITDA margin excl. EI (%)
EPS excluding EI (sen)
Accumulated losses
(52.32)
(388)
(525)
(410)
(260)
(234)
Net Assets per share (RM)
0.41
0.64
1.01
1.22
1.28
Gearing ratio
1.74
0.72
0.54
0.44
0.36
PE Ratio
n/a
7.78
19.40
13.83
13.28
Share Price as at 31 Dec (RM)
n/a
1.11
1.67
2.60
2.60
GROWTH ACHIEVED FAR OUTSTRIPPING COMPETITORS
HIGHEST EVER REVENUE RECORDED
*TV3 Only
12
Section 2.2
TV NETWORKS
13
SEGMENTATION OF OUR TV STATIONS
STATION
TARGET VIEWERS
POSITIONING
ADVERTISING FOCUS
Mass Market skewed
towards Malay audience,
with progressive mindsets
Channel synonymous with
family, real-life,
entertainment and news
content leaning towards
cultural proximity - "Inspirasi
Hidupku"
Fast moving consumer goods
("FMCG") products,
communications, services,
transportation
Malaysian Urban
Households; 25-45 years old;
Kids & Chinese
Television as an escapade –
“My Feel Good Channel”
Brands targeting the
Malaysian Urban middle to
high class; image products
and lifestyle
Young Malaysian Urban,
Chinese; 15-24 years old
Tastemaker, energetic and
differentiation in content –
“We are different”
Brands targeting the Young
Urban; sports, energy drink,
fashion, and Chinese
viewers; health and wealth
related
Mass Market skewed
towards young semi-urban
and rural Malays
Young semi-urban Malays
skewed content with a
mixture of drama, real-life
and current affairs –
"Dekat Di Hati"
FMCG products, non
traditional advertisers,
government
14
TV NETWORKS RESULTS BY STATION
Net Revenue (After Royalties)
FY 2011
FY 2010
EBITDA Before EI
FY 2011
FY 2010
15
TV VIEWERSHIP SHARE (FTA & PAY TV)
Station
Total 4+ Viewers
Jan - Dec Jan - Dec
2011
2010
Chinese 4+ Viewers
Jan - Dec Jan - Dec
2011
2010
Urban 15 to 29
(English Literate)
Jan - Dec Jan - Dec
2011
2010
Malay 15+ Viewers
Jan - Dec Jan - Dec
2011
2010
28%
28%
3%
4%
18%
19%
37%
39%
5%
5%
19%
19%
7%
7%
2%
2%
6%
5%
24%
21%
9%
8%
2%
1%
8%
8%
1%
1%
5%
4%
10%
10%
47%
46%
47%
45%
39%
38%
51%
52%
5%
6%
1%
1%
3%
3%
8%
9%
8%
10%
4%
4%
6%
7%
10%
12%
40%
38%
48%
50%
52%
52%
31%
27%
0%
0%
0%
0%
0%
0%
0%
0%
16
TOP 10 CHANNELS WATCHED (FTA & PAY-TV)
TOTAL 4+
STN Q1-Q4 2011 STN
CHINESE 4+
Q1-Q4 2010 STN Q1-Q4 2011 STN
Q1-Q4 2010
STN
MALAY 15+
Q1-Q4 2011 STN
Q1-Q4 2010
1 TV3
28
TV3
28
8TV
24
8TV
21
TV3
38
TV3
39
2 TV2
8
TV2
10
ntv7
19
ntv7
19
TV9
10
TV2
12
3 TV9
8
TV9
8
HUAHEE
9
HUAHEE
8
TV2
10
TV9
9
4 8TV
6
TV1
6
WLT
6
WLT
6
TV1
8
TV1
9
5 ntv7
5
8TV
5
AEC
5
AEC
5
RIA
5
PRIMA
5
6 TV1
5
ntv7
5
TV2
4
XHE
4
PRIMA
5
RIA
5
7 RIA
4
SUN-TV
4
XHE
3
TV2
4
CERIA
3
CERIA
2
8 SUN-TV
4
PRIMA
3
TV3
3
OTH. A.
4
nTV7
2
ntv7
2
9 PRIMA
3
RIA
3
TVBC
2
TV3
3
8TV
2
8TV
1
10 CERIA
3
CERIA
2
SHX
2
TVBS
2
WARNA
2
OASIS
1
Source: Nielsen Audience Measurement
MPB channels remain the leader among key markets
17
Section 2.3
PRINT MEDIA
18
SEGMENTATION OF OUR NEWSPAPERS
NEWSPAPER
TARGET VIEWERS
POSITIONING
New Malays, young age 20-39
years old, dynamic and
progressive Malaysian
Malay Daily
Young people who are
looking for entertainment,
shopping news and lifestyle
features
From all walks of life, working
class to students, housewives,
business people and decision
makers
Malay Daily
People who have an open
mind and are drawn to new
and interesting products and
services
Influential newspaper
addressed to government and
corporate sectors, the
intelligentsia, young
professional and students
English Daily
Authoritative newspaper that
is responsible for the wellbeing and progress of the
nation in all fields. “The
Newspaper of The Nation”
ADVERTISING
FOCUS
FMCG products,
communications, services,
transportation
FMCG products,
government, services
Targeting the Malaysian
Urban middle to high class;
image products and
lifestyle
CLEAR SEGMENTATION STRATEGY
Giving advertisers and readers what they want to capture greater share of readership and
advertising revenue
19
A GROWING CONTRIBUTION FROM THE MALAY MARKET
Print Adex Market Share By Language
Readership Trend By Language
50
7,000
46
44
45
6,000
42
40
38
40
5,000
35
English
4,000
Malay
3,000
Chinese
Tamil
2,000
36
36
32
30
% 30
26
25
22
29
31
26
22
20
15
10
1,000
5
0
0
2006
2007
2008
2009
2010
2007
2008
English
2009
2010
Chinese/Others
2011
Malay
Source: Nielsen Media Research
Print Revenue By Product FY 2011
Revenue Contribution 2010
Revenue Contribution 2011
21%
54%
NST/NSUT
25%
BH/ BM
HM/MA
22%
51%
NST/NSUT
27%
BH/ BM
HM/MA
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.
20
HARIAN METRO – A MAJOR SUCCESS
Both circulation and Adex have grown significantly over the last 5 years
Adex - >100% growth in 5 years until 2011
Adex increased by approximately 23% in 2011 despite a decrease in the daily circulation
21
copies
Section 2.4
RADIO NETWORKS
22
SEGMENTATION OF OUR RADIO STATIONS
STATION
TARGET LISTENERS
POSITIONING
ADVERTISING FOCUS
Malay listeners aged
between 15 to 35 years old
Malay Radio Station
Students and urban
professionals who love
entertainment, gossips, the
hottest music, SMStrendsetters.
Brands targeting Malay
youth, telecommunications,
FMCG
Urban listeners age 15 to 35
years old, mainly students
and young adults.
English Radio Station
Targeting urban listeners
below the age of 35 who are
tech savvy and keeps
themselves in the music
trend, latest entertainment
scoop and loves
unpredictability.
Brands targeting urban
youth, telecommunications,
lifestyle
Chinese listeners aged
between 15 to 35 years old
Chinese Radio Station
Urban listeners who are
music enthusiasts that are
tech savvy and loves the
latest news in entertainment.
Brands targeting Chinese
youth, telecommunications,
FMCG
23
RADIO - PERFORMANCE RATINGS
#2 Overall Malay, overtaking Era FM
#2 Overall English
#1 Age 15-34 yrs Overall
 3.57 million listeners every week (up by 4%)
 767,000 listeners every week (up by 30%)
756,000 listeners every week (up
by 9%)
#2 Overall
Chinese Age
15-24
170% increase in listenership
since it was first launched in 2009
24
Source: Nielsen Radio Audience Measurement (RAM) Survey Wave 2, 2011
LAUNCH OF HOT FM KELATE & HOT FM TERENGGANU


Hot FM Kelate & Hot FM Terengganu launched in
January 2012 to build new regional revenue
Maintain Hot FM as the No. 1 station for under 35 by
strengthening our East Coast listenership
IDENTIFIED A GAP IN THE EAST COAST:
Almost 70% radio reach
An opportunity for HOT FM to strengthen its weak region
Media Prima Radio Networks has two existing
frequencies that can be regionalized
Adex in the East Coast Market has reached the RM8mil
mark last year.
25
Section 2.5
OUTDOOR MEDIA
BIG DRIVE expressways
BIG RIDE transit
BIG BUYretail
BIG FLY airport
26
OUR OUTDOOR MARKET SHARE RETAINS AT 43%
18%
BTO
33%
2%
Kurnia
Redberry Grp
Seni Jaya
4%
Spectrum
5%
Ganad
Alloy
5%
Gelumbang
7%
10%
Others
16%
Source: Company search and due diligence
27
OUR OUTDOOR COVERAGE
The Outdoor Division holds several exclusive outdoor media rights in:
i. Expressways;
ii. Transit lines;
ii. Retail malls;
iii. Airports; and
iv. Key city and town sites.
The largest Outdoor company with presence all over Malaysia with 43% market share.
More than 8,000 sites throughout Malaysia.
28
DIGITAL ROLLOUT- KUCHING INTERNATIONAL AIRPORT & KOTA KINABALU
INTERNATIONAL AIRPORT
29
DIGITAL ROLLOUT- THE CURVE & SURIA KLCC
30
Section 2.6
NEW MEDIA
31
NEW MEDIA WEBSITES
Top 10 Malaysian Sites
DECEMBER 2010
Site
DECEMBER 2011
Rank
Total Unique Visitors (‘000)
Rank
Total Unique Visitors (‘000)
1
2,199
1
2,814
6
926
2
2,407
Maybank Group
2
1,.497
3
1,953
Maxis Group
14
615
4
1,596
Star Publications (M) Bhd
5
939
5
1,579
Tune Group
3
1,147
6
1,431
CIMB Group
10
724
7
1,083
CARI.COM.MY
12
704
8
1,064
Malaysiakini Sites
16
551
9
1,001
Digital Five
4
977
10
949
MUDAH.MY
MPB Group
With the inclusion of NSTP portals into Media Prima Group numbers from October
2011, our ranking has moved up from #6 to #2
Strong online reach domestic & international websites
32
POPULAR PROGRAMMES
Total Video Views by Month('000)
Total
Tonton
Berita TV3
Microsite
ntv7 News
4,465
3,688
3,656
3,185
2,851
2,787
2,382
2,984
1,748
1,244
837
1,244
837
Jan'11
Feb'11
1,105
Mar '11
2,648
1,698
2,777
2,425
1,315
1,105
1,032
239
Apr'11
122
May'11
1,759
758
1,172
337
3,154
167
Jun'11
250
Jul'11
501
590
170
Aug'11
122
Sep'11
1,944
2,194
598
736
682
123 100
123
151
Oct'11
93
Nov'11
105
Dec'11
Top 10 Programs on TonTon - Jan to Dec 2011
(No of Video Views)
2,218,171
1,470,437
nora elena
tentang dhia
954,088
822,153
807,211
556,212
497,700
487,211
416,568
398,956
marimar
cinta elysa
soffiya
juvana
kasih alia
annissa
stanza cinta
tahajjud cinta
South East Asia’s largest video serving portal
with over 2.0 million registered users (Feb 2012) & up to 40,000 hours of content
33
TONTON GOES MOBILE
iPhone, iOS4
& above
iPad iOS4 &
above
Android 2.2
& above
Blackberry6
& above
34
NEWSPAPERS ON IPAD
NST on iPad
Harian Metro on
iPad
35
Section 2.7
CONTENT CREATION
36
CONTENT DEVELOPMENT AND PRODUCTION

In-house creative resources for developing and
producing content for TV, new media and
cinema

TV content primarily for MPB channels

Approximately 5,000 hours of content annually

Feature film production and distribution – 10 to
15 titles annually

Now venturing into content for non-MPB clients
including international clients

Clients - TV Al-Hijrah, ASTRO, History Channel

Mainly documentaries and magazines which
have succeeded in building strong primetime
following
37
ENTERTAINMENT

40% of Primeworks output

Includes annual flagship shows that command over 4 mil viewers and 60% share
38
FILM PRODUCTION AND DISTRIBUTION
39
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, 2011.

Its primary target audience is Malay urban with high household income while the secondary target audience is
mass market.
40
Section 3
DIVIDENDS
41
PROPOSED DIVIDEND FY 2011



Proposed final single tier dividend of 5.0 sen for FYE 31 December 2011 (subject to shareholders’
approval at this AGM)
First time ever MPB pays-out dividends thrice in a financial year (including Special Dividends)
The proforma calculation for dividend payout and yield for the purpose of illustration:
PATAMI (RM'000)
PATAMI - Continuing operations (RM'000)
Estimated Share capital ('000) as at entitlement date
Proposed Final Dividend (RM'000)
Final Single Tier Dividend per share (sen) subject to approval by members at AGM
First Interim Single Tier Dividend per share (sen) paid on 14 October 2011
Second Interim Single Tier Dividend per share (sen) paid on 16 January 2012
Sub-Total (sen)
Special Single Tier Dividend per share (sen) paid on 16 January 2012
Total (sen)
Final Dividend for
FYE 2011
207,650
205,398
1,179,435
58,972
5.00
3.00
3.00
11.00
5.00
16.00
Dividend* Yield
** 4.2%
Dividend* Pay-Out Ratio (over PATAMI)
59.2%
Dividend Pay-Out Policy (over PATAMI)
* Excludes special dividends
** Based on MPB share price of RM2.60 as at 31 December 2011
25% to 75%
42
DIVIDEND TRACK RECORD OVER 6 YEARS
50.0%
Pay –Out Ratio
(% of PATAMI)
59.2%
50.0%
45.4%
31.0%
26.3%
16.00
15.70
11.00
Net Dividend
Declared
(sen)
10.00
9.30 9.30
10.00 10.00
6.70
5.60
3.50 3.50
2006
2007
2008
2009
2010
2011
Net Dividend Declared (include Special Dividend) (sen)
Net Dividend Declared (excluding Special Dividend) (Sen)
43
Section 4
CORPORATE GOVERNANCE & CORPORATE RESPONSIBILITY
44
OUR COMMITMENT TOWARDS GOOD CORPORATE GOVERNANCE
MPB BOARD OF DIRECTORS
The Board has ten (10) members of which
three (3) are Executive Directors and seven
(7) are Non-Executive Directors.
10%
30%
60%
Non-Independent Non-Executive
Independent Non-Executive
Executive
The Independent Non-Executive Directors make up 60% of the Board membership.
Size of the Board is optimum given the scope and size of the Group.
Size of the Board is sufficient to provide for effective decision-making with a substantial
degree of independence from management.
All of the Group’s operating companies have separate and independent boards.
45
CREATING VALUE FOR OUR STAKEHOLDERS THROUGH SUSTAINABLE
ENGAGEMENT
“A business that makes nothing but money, is a poor business”
FOCUS
Education
Humanitarian
Other Community
Initiatives
PROGRAMMES











Promoting Intelligence, Nurturing Talent & Advocating Responsibility (PINTAR)
Education Pullouts
Examination Workshops and Seminars
RHB New Straits Times National Spell It Right
Akhbar Dalam Darjah (ADD) Workshops
Guru.net.my
NST-NIE Activities
Niexter
Journalism on Campus
School Times
NST School Sponsorship Programme





Tabung TV3, Special Purpose and TV3 Bersamamu Funds
NSTP Charity Fund
Tabung Bencana NSTP-Media Prima
Titipan Kasih Harian Metro
Gua Gives Back










ntv7 Feel Good Run & Autism Campaign
The 8TV Celebrity Charity Drive
Semarak Ramadhan – Berita Harian
Tonton Cupcakes Charity Sale
Hangatkan Sekolahku
Hot FM Kita Punya
LOL – Back to School
LOL – Unitalk at UTAR
Yayasan Nyanyang Press Project – Bangkok Flood
Ice Cream 4 You
46
Section 5
OUTLOOK & CONCLUSIONS
47
OUTLOOK FY 2012 – WAY FORWARD
MPB Group




1st and largest integrated media group in Malaysia & ASEAN.
Strong presence across its media platforms - each entity is a leader in its respective media platform.
Positive GDP growth a catalyst to Adex growth – Adex growth usually outgrows GDP growth
Able to offer a complete “solution” for customised marketing and branding
TV networks





Maintain dominant position in viewership shares
Reaching viewers using all available mediums
Investment in quality programming and branding – Premium Content
Increase investment in local content.
Improved ratings will allow improvement in future revenues
Print media




Distant No. 1 in terms of readership in a growing Bahasa market
Bahasa papers – major & growing contributor to NSTP
To revive brand and image to increase readership
Continuous improvement on printing yield
Radio networks
 Hot FM – No.2 among all stations and No. 1 across its key demographics
 Regionalisation – Expansion into East Coast
 Building new talent
Outdoor media
 43% market share
 Investment in high yield/return assets, i.e. digital
New media




Content creation
 Diversify revenue – Production of Malaysian content (not only Malay content) for external clients & for
regional and international markets.
 Focus on “blue-chip” content via Joint-Ventures
 Develop & ramp up HD content
The way forward - Opportunity to merge online expertise with strong offline brands
Monetise our online portals & online subscription business
TonTon- World-Class Video Portal
Internet Protocol Television (IPTV) – MPB to be a main content provider – in line with efforts in making
our content available on multiple platforms
 Well accepted within the newspaper business (e-Media)
48
AN INTEGRATED MEDIA GROUP
TV
NEWSPAPER
LARGEST reach in
terms of TV
viewership
LARGEST reach in
terms of
newspaper
circulation and
readership in
Peninsular
Malaysia
RADIO
#2nd LARGEST reach
in terms of
combined radio
channel listeners’
numbers
OUTDOOR
NEW MEDIA
One of the LARGEST
share of advertising
revenue in the
outdoor media
industry
Media avenue
reaching out to
INTERNET based
viewership
NSTP’S
CONTENT
CREATION
<-------Boasts the Widest Multimedia Distribution Offering on a Single Integrated Platform ------->
49
50
QUERIES FROM
MINORITY SHAREHOLDER WATCHDOG GROUP
ELEVENTH (11TH) ANNUAL GENERAL MEETING OF
MEDIA PRIMA BERHAD
19 April 2012
51
QUESTION 1
What are the strategies being implemented to bring synergies to the six (6) main segments of
business and improve market shares in the respective segments? What are the company’s growth
plans for the near to medium term?
MPB Group
Maintain industry leadership
Ensure that our assets would be the medium of choice; for both advertisers & consumers.
Focus for each of MPB’s business unit will be CONTENT.
Continue to invest in quality content which are platform agnostic
Sharing content between platforms whereby the success of a particular content on one platform is replicated on
another platform.
Have an integrated marketing unit which sorts to service clients that seek total solution on media advertising.
Manage cost efficiently by using shared services functions to serve all platforms
TV Networks
To maintain and strengthen our dominant position in viewership shares of each of our TV stations despite
continuous fragmentation from the introduction of more new channels especially by the paid TV operators
Continue to invest in high-quality high-demand content to improve ratings which will translate into growth of
advertising spending.
Print Media
Harian Metro - Distant No.1 in terms of readership in a growing Bahasa market.
Bahasa papers - Major & growing contributor to NSTP.
Continue to revive brand & image
Ensure continuous improvement in printing yield.
52
QUESTION 1 (CONTINUED)
What are the strategies being implemented to bring synergies to the six (6) main segments of
business and improve market shares in the respective segments? What are the company’s growth
plans for the near to medium term?
Radio Networks
Rope in new clients to advertise
Launched Hot T’Ganu and Hot K’late in January 2012 - Target the untapped Malay market in the East Coast of
Peninsula Malaysia.
Outdoor Media
Consistently on the look-out for new sites, especially long-term concession contracts
Continue investment in high yield/return assets which includes the digital outdoor advertising format.
Content Creation
Creation of new compelling content
Evaluate possibility of unlocking the potential of our archives
Enter into agreements with several Pay TV operators and other mobile providers for the distribution and sale of
content. (e.g. EMAS channel on Unifi platform).
New Media
One of the highest traffic of unique visitors in Malaysia - at 2.4 million registered unique visitors as at February
2012.
Embark on combining selling packages with those of other platforms
Monetise online assets
53
QUESTION 2
The inventories increased substantially from RM108.5 million in 2010 to RM145.8 million in 2011.
What were the raw materials under the inventories (page 204 of the 2011 annual report) and what
were the reasons for the significant increase? Is the board not concerned on any possible impairment
on the significantly higher level of inventories?
Inventories relate to newsprint.
Increase in stock is a strategy to keep 6 to 9 months’ worth of newsprint in order to minimise average cost/mt given
the upward trend in newsprint price currently at USD700/mt.
The newsprint stocks will be used by the print production in the next 12 months.
Hence there is no impairment issue.
54
QUESTION 3
As noted on page 127 of the annual report, impairment on trade and other receivables increased
significantly to RM10.4 million in 2011 from RM2.4 million in 2010. What measures have been taken
to recover these receivables and what are the chances of recovery?
Management has ceased servicing these customers.
Continue to discuss repayment plans.
Customers are still in operation with a view on going concern.
Recovery is highly probable but not with 100% certainty.
55
CORPORATE GOVERNANCE
MSWG is promoting certain standards of corporate governance best practices in PLCs. In this regard,
we like to see the Board addressing and formalising the approach to gender diversity and actions
taken to meet the target of 30%. Also disclose it in the Annual Report.
Grooming a pool of female senior management, some of which have already been appointed as directors of the
operating subsidiaries.
The following is the list of female directors within MPB Group’s subsidiary companies:
(i)YM Raja Datuk Zaharaton Raja Zainal Abidin on the Board of
i.Big Tree Outdoor Sdn Bhd (Outdoor Division);
ii.Synchrosound Studios Sdn Bhd (Radio Networks);and
iii.Primeworks Studios Sdn Bhd (Content Creation).
(i)Lam Swee Kim on the Board of Alt Media Sdn Bhd (New Media division);
(ii)Sherina Nordin on the Board of CH-9 Media Sdn Bhd (TV9);
(iii)Zurina Othman on the Board of Max-Airplay Sdn Bhd and Perintis Layar Sdn Bhd;
(iv)Nur Airin Zairin binti Zainul Bahrin on the Board of Merit Idea Sdn Bhd, Natseven TV Sdn Bhd (ntv7) and Encorp
Media Technology Sdn Bhd; and
(i)Dr. Rodaina Ibrahim on the Board of NSTP e-Media Sdn Bhd and Berita Information Systems Sdn Bhd.
Currently almost 65% of Media Prima Group senior management members are female.
The Board endeavours to continue to improve such diversity of the Board members composition within the Group.
56
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 forward-looking statements may be
identified by forward-looking words like “would”, “intend”, “hope”, “will”, “may”,“should”,
“expect”, “anticipate”, “believe”, “estimate”, “predict”, “continue”, or similar words. Forwardlooking 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.
57
APPENDIX
58
ADEX SHARE BY MEDIA IN MALAYSIA
TV
51%
N/papers
41%
Others
3%
Radio
4%
Outdoor
1%
FY 2011
RM Million
FY 2010
TV*
Newspapers
Radio
Outdoor
Others
Total
YTD 2011
5,482
4,358
428
119
372
10,759
YTD 2010
4,840
3,893
409
120
351
9,613
% Change
13
12
5
(1)
6
12
* Includes Pay-TV
Source : AC Nielsen
59
TOP 10 PROGRAMMES
Programme
(r)000s
TVR
Share (%)
1
Anugerah Juara Lagu (L)
4,186
21.3
64.1
2
Anugerah Skrin (Live)
4,087
20.4
60.4
3
Anugerah Bintang Popular Berita Harian
4,027
20.5
60.9
4
Mentor Akhir (L)
3,375
19.2
60.5
5
Lestary – Cinta Elysa
3,310
16.5
47.6
6
Mentor
3,028
15.4
46.3
7
Telemovie ASK- Jgn Htr Aku K.N
2,868
14.3
45.9
8
Juvana
2,777
14.1
41.5
9
Lestary – Asmara 2
2,685
13.6
39.6
10
Berita Terkini 2300
2,634
13.4
45.4
33,377
60
MPB FINANCIALS
61
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31.12.2011
RM'000
AS AT
31.12.2010
RM'000
727,087
55,704
214,501
1,855
370,455
50,139
1,400
1,421,141
728,748
57,850
212,374
1,882
381,830
56,491
1,120
1,440,295
3,318
145,753
379,800
14,136
450,096
993,103
3,253
108,515
344,869
3,773
317,931
778,341
180
16,482
2,414,424
2,235,118
409
341,988
102,422
444,819
409
458,947
87,844
547,200
422,572
156,206
8,422
587,200
322,412
84,031
8,043
414,486
-
23,239
TOTAL LIABILITIES
1,032,019
984,925
Equity and Reserves
Share capital
Reserves
Non-controlling interest
Total equity
1,068,151
295,687
18,567
1,382,405
1,006,696
220,454
23,043
1,250,193
TOTAL LIABILITIES AND EQUITY
2,414,424
2,235,118
Non Current Assets
Property, plant and equipment
Investment properties
Associates
Prepaid expenditure
Intangible assets
Deferred tax assets
Investments available-for-sale
Current Assets
Financial assets at fair value through profit or loss
Inventories
Receivables, deposits and prepayments
Tax recoverable
Deposits, bank and cash balances
Non-current assets held for sale
TOTAL ASSETS
Non Current Liabilities
Payables
Borrowings
Deferred tax liabilities
Current Liabilities
Payables
Borrowings
Taxation
Net Liabilities of subsidiary acquired exclusively for sale
Net Assets per share (sen)
Gearing ratio
127.68
0.36
121.9
0.44
62
CONSOLIDATED CASH FLOW
FOR THE YEAR ENDED
31.12.2011
RM'000
Cash flow from operating activities
Receipts from customers
Payments to employees and suppliers of goods and services
Income tax paid
FOR THE YEAR ENDED
31.12.2010
RM'000
1,708,831
(1,356,480)
(61,161)
1,604,859
(1,169,438)
(51,556)
- Continuing operation
- Subsidiary acquired exclusively for sale
291,190
(16,357)
383,865
1,881
Net cash flow from operating activities
274,833
385,746
Cash flow from investing activities
Purchase of property, plant & equipment
Purchase of investment properties
Proceeds from disposal of a subsidiary acquired exclusively for sale
Interests received
Acquisition of subsidiaries, net of cash acquired *
Dividends received
Proceeds from disposal of PPE & invmt properties
(91,929)
7,608
8,538
(2,723)
80
1,089
(70,708)
(210)
Net cash inflow arising from investing activities:
- Continuing operation
- Subsidiary acquired exclusively for sale
(77,337)
(3)
(54,941)
(909)
Net cash flow from investing activities
(77,340)
(55,850)
Cash flow from financing activities
Proceeds from issuance of bonds
Proceeds from issuance of shares
Net drawdown/(repayments) of hire purchase
Interests paid
Net drawdown/(repayments) of borrowings
(Increase)/decrease in restricted fixed deposits
Dividends paid
Repayment of Medium Term Notes (“MTN”)
110,904
(7,383)
(29,476)
27,953
(12,612)
(97,873)
(70,000)
143,734
16,036
(5,650)
(27,872)
(189,732)
(2,968)
(96,486)
-
Net cash inflow arising from financing activities:
- Continuing operation
- Subsidiary acquired exclusively for sale
(78,487)
(31)
(162,938)
(107)
Net cash flow from financing activities
(78,518)
(163,045)
Net increase in cash & cash equivalents
Forex differences
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*
* Net of restricted cash balance
118,975
305,942
424,917
4,348
(6,930)
103
18,456
166,851
165
138,926
305,942
63
RESULTS QUARTER BY QUARTER
RM'000
Q3 2011
A
Q4 2011
B
Q4 2010
C
(B - A)
%
(B - C)
%
Gross revenue
Net revenue
Royalties
Net revenue after royalties
Direct costs
Contribution
498,271
417,468
(939)
416,529
(130,287)
286,242
506,471
428,804
(1,036)
427,768
(109,429)
318,339
485,591
411,271
(1,039)
410,232
(111,533)
298,699
2
3
10
3
16
11
4
4
0
4
2
7
Other income
Overheads
EBITDA before EI
Finance costs
Depreciation & amortisation
Profit before associates
Share of associate's results
Profit before tax before EI
Exceptional items ("EI")
Profit before tax
Taxation
- EI & DTA
Profit after tax
Minority interest
PATAMI - Continuing Operations
9,163
(188,915)
106,490
(8,725)
(25,732)
72,033
683
72,716
72,716
(18,672)
54,044
(726)
53,318
5,069
(193,874)
129,534
(7,050)
(21,580)
100,904
(45)
100,859
(2,168)
98,691
(25,748)
72,943
(248)
72,695
4,918
(177,316)
126,301
(8,076)
(24,356)
93,869
989
94,858
(15,474)
79,384
(18,247)
29,018
90,155
(363)
89,792
(45)
(3)
22
19
16
40
(>100)
39
NA
36
(38)
NA
35
66
36
3
(9)
3
13
11
7
(>100)
6
(86)
24
(41)
100
(19)
32
(19)
(1,592)
100
>100
88,200
76,248
>100
41
36
100
(15)
(5)
Net gains/(losses) from subsidiaries held
for sale
Gain on disposal of subsidiary acquired
exclusively for sale
PATAMI
PATAMI excluding EI - Continuing Ops
EBITDA excluding EI Margin
PATAMI excluding EI Margin
54
53,372
53,318
26%
13%
1,681
670
75,046
72,695
30%
17%
31%
19%
64
NET REVENUE & PATAMI - 3 YEAR COMPARISON
FY 2011
A
FY 2010
B
1,618,380
1,542,992
740,997
>100
>100
PATAMI
207,650
242,294
194,800
-14%
7%
PATAMI EXCLUDING EI - CONTINUING
OPERATIONS
205,398
185,333
73,835
>100
>100
NET REVENUE (AFTER ROYALTIES)
FY 2009
C
CHANGE
(A - B)
(A - C)
65
MPB GROUP RESULTS BY MEDIA PLATFORM
TVN
R adio
Out door
Media
Print
Media
New Media
Ot hers
Consol
Adjust ment
Tot al
Act ual
R M'000
G ross R evenue
2011
2010
Growth %
Net R evenue (af t er royalt ies)
2011
2010
Growth %
EBI TD A Bef ore EI
2011
2010
Growth %
D epreciat ion &
I nt erest Expenses
2011
2010
Growth %
PBT / (LBT) Bef ore Associat e
Bef ore EI - Cont inuing
Operat ions
2011
2010
Growth %
860,335
812,130
6
68,010
75,103
(9)
159,386
142,775
12
830,313
796,446
4
11,901
12,665
(6)
29,376
26,453
11
(25,652) 1,933,669
(22,696) 1,842,876
(13)
5
687,551
651,837
5
58,486
63,061
(7)
147,829
134,321
10
701,536
670,385
5
10,651
11,510
(7)
29,376
26,453
11
(17,049) 1,618,380
(14,575) 1,542,992
(17)
5
242,856
220,144
10
30,301
32,155
(6)
49,761
49,564
0
118,931
119,833
(1)
(10,097)
(5,617)
80
309,054
122,938
(151)
(334,494)
(145,375)
>100
406,312
393,642
3
9,052
9,105
1
50,441
48,951
(3)
30,604
30,384
(1)
(6,903)
2,584
>100
126,755
132,604
4
40,709
40,459
1
68,490
70,882
(3)
(327,591)
(147,959)
>100
279,557
261,038
7
40,976
38,054
(8)
201,880
182,090
11
1,814
1,921
6
28,487
30,234
(6)
771
1,605
52
(10,868)
(7,222)
50
278,450
92,554
>100
66
TV NETWORKS
67
TV NETWORKS RESULTS FY 2011
RM'000
FY 2011
%
FY 2010
Gross revenue
860,335
812,130
6
Net revenue (after royalties)
687,551
651,837
5
Direct costs
(193,107)
(188,471)
(2)
Contribution
494,444
463,366
7
6,480
7,864
Other income
(18)
Overheads
(258,068)
(251,086)
(3)
EBITDA before EI
242,856
220,144
10
Exceptional item (EI)
EBITDA after EI
Interest & depreciation
Profit before tax (PBT)
Taxation
Profit after tax (PAT)
PATAMI excluding EI
EBITDA excluding EI margin
PAT excluding EI Margin
(2,168)
240,688
(40,976)
199,712
(15,761)
204,383
(38,054)
166,329
(86)
18
(8)
20
(53,825)
(20,764)
(159)
145,887
145,887
35%
21%
145,565
161,326
34%
25%
0
(10)
68
TV ADEX SHARE BY STATION
RM’000
2011
Non discounted
gross revenue
-%
43
- RM'000
1,304,696
Growth %
12
Discount factor
-%
58
- RM'000
(758,296)
Gross revenue
-%
54
- RM'000
546,400
Growth %
6
2010
Non discounted
gross revenue
-%
40
- RM'000
1,161,378
Discount factor
-%
56
- RM'000
(647,079)
Gross revenue
-%
54
- RM'000
514,298
TOTAL
17
518,994
4
16
469,345
(1)
12
354,517
(8)
88
2,647,552
5
76
(393,298)
75
(352,006)
80
(283,617)
68
(1,787,217)
12
125,696
12
12
117,339
6
17
500,509
16
471,979
77
(387,836)
77
(361,591)
12
112,672
11
110,387
7
70,900
(5)
3
85,875
13
9
280,453
(5)
60 *
60 *
(51,524)
(168,271)
0
0
0
100
3,013,880
4
0
67
0 (2,007,012)
85
860,335
6
3
34,351
13
11
112,182
(5)
0
0
0
100
1,006,868
5
13
386,239
87
2,520,103
3
75,782
10
296,586
0
0
100
2,892,470
81
(311,466)
68
(1,707,973)
8
74,773
84.50
812,130
60 *
60 *
(45,470)
(177,949)
3
30,311
12
118,637
0
67
0 (1,931,392)
0
0
100
961,079
* Based on estimates.
69
PRINT MEDIA
70
NSTP GROUP CONSOLIDATED RESULTS FY 2011
RM'000
FY 2011
A
GROSS REVENUE
%
CHANGE
(A-B)
FY 2010
B
830,313
796,446
4
NET REVENUE
DIRECT COSTS
701,536
(225,261)
670,385
(221,108)
5
(2)
CONTRIBUTION
476,275
449,277
6
OTHER INCOME
8,587
6,676
29
(365,931)
(336,120)
(9)
EBITDA
118,931
119,833
(1)
DEPRECIATION
(49,065)
(47,099)
(4)
FINANCE COST
(1,376)
(1,852)
26
PROFIT BEFORE EI & ASSOCIATES
68,490
70,882
(3)
-
(10,197)
(>100)
2,127
70,617
6,196
66,881
(66)
6
(13,322)
(13,240)
(1)
PROFIT AFTER TAX (PATAMI)
57,295
53,641
7
PATAMI EXCLUDING EI - CONTINUING OPS
57,295
63,838
(10)
OVERHEADS
EXCEPTIONAL ITEMS
SHARE OF RESULTS OF ASSOCIATES
PROFIT BEFORE TAX
TAXATION
PATAMI MARGIN
8.2%
8.0%
PATAMI EXCLUDING EI - CONTINUING OPS MARGIN
8.2%
9.5%
EBITDA MARGIN
17%
18%
71
NSTP GROUP REVENUE CONTRIBUTION
90
79
78
80
76
73
70
60
50
%
40
27
30
24
22
21
2009
2010
2011
English
Malay
20
10
0
2008
Contribution from the Malay sector continue to grow for the Print Division
72
NSTP ADVERTISING REVENUE TREND FY 2011
11% growth
440
420
21% growth
400
RM Million
380
360
340
320
300
280
260
240
220
200
2009
2010
2011
73
AUDITED CIRCULATION COPIES
Jan 2011June 2011
July 2010Dec 2010
July 2009June 2010
July 2008June 2009
ENGLISH
New Straits Times
98,920
101,408
109,341
120,770
New Sunday Times
116,782
120,631
129,554
141,986
BAHASA
Berita Harian
151,490
150,020
160,597
183,187
Berita Minggu
208,327
217,166
231,231
275,143
Harian Metro
393,050
403,640
378,354
338,552
Harian Metro is the highest circulated paper in Malaysia
Source: Audit Bureau of Circulation
74
Latest newsprint price hovering USD650
2012
2011
2010
2009
500
525
445
466
542
546
509
625
701
730
700
630
650
630
574
721
850
900
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
475
450
632
729
942
1000
1996
1995
1994
1993
400
495
500
1992
1991
589
700
1990
1989
702
800
1988
531
600
1987
USD/MT
NSTP NEWSPRINT PRICE TREND
1100
(Q1)
300
200
100
0
75
PRINT - BRANDING
Harian Metro is
positioned to be
different from the
mainstream
newspapers.
76
RADIO NETWORKS
77
RADIO NETWORKS FINANCIAL RESULTS
RM'000
FY
FY
CHANGE
2011
2010
%
GROSS REVENUE
68,010
75,103
(9)
NET REVENUE (AFTER ROYALTIES)
58,486
63,061
(7)
DIRECT COSTS
(178)
(211)
16
CONTRIBUTION
58,308
62,850
(7)
OTHER INCOME
1,219
874
39
OVERHEADS
(29,226)
(31,568)
7
EBITDA
30,301
32,155
(6)
DEPRECIATION
(1,814)
(1,921)
6
PROFIT BEFORE TAXATION BEFORE EI
28,487
30,234
(6)
EXCEPTIONAL ITEM (EI) - ESOS
-
(849)
100
PROFIT BEFORE TAX (PBT)
28,487
29,385
(3)
TAXATION
(5,125)
(6,662)
23
PROFIT AFTER TAXATION (PAT)
23,362
22,723
3
EBITDA excluding EI Margin
PATAMI excluding EI Margin
52%
40%
51%
37%
78
OUTDOOR MEDIA
79
OUTDOOR MEDIA FINANCIAL RESULTS FY2011
RM'000
FY 2011
%
CHANGE
FY 2010
GROSS REVENUE
159,386
142,775
12
NET REVENUE
147,829
134,321
10
DIRECT COSTS
(79,692)
(68,872)
(16)
68,137
65,449
4
(19,177)
(16,816)
(14)
49,761
49,564
0
CONTRIBUTION
OVERHEADS
EBITDA
FINANCE CHARGES
-
(10)
100
DEPRECIATION
(9,052)
(9,095)
0
PROFIT BEFORE TAX
40,709
40,459
1
-
1,244
(100)
TAXATION
(9,964)
(9,529)
(5)
PROFIT AFTER TAX
30,745
32,174
(4)
EXCEPTIONAL ITEM (EI)
EBITDA EXCLUDING EI Margin
PATAMI EXCLUDING EI Margin
34%
21%
37%
23%
80
NEW MEDIA
81
ALT MEDIA FINANCIAL RESULTS FY 2011
YTD DEC 2011
YTD DEC 2010
RM'000
GROSS REVENUE
NET REVENUE
DIRECT COSTS
CONTRIBUTION
CONTRIBUTION %
OTHER INCOME
OVERHEADS
LBITDA
LBITDA %
EXCEPTIONAL ITEM (EI) - ESOS
DEPRECIATION
LOSS BEFORE TAX (LBT)
TAXATION
LOSS AFTER TAX (LAT)
LAT %
LAT BEFORE EI
VARIANCE
%
11,901
10,651
(943)
9,707
91%
12,665
11,510
(717)
10,792
94%
(6)
(7)
(32)
(10)
12
(19,817)
(10,097)
(95%)
(771)
(10,868)
(10,868)
(>100%)
(10,868)
102
(16,512)
(5,617)
(>100%)
(456)
(1,605)
(7,678)
(7,678)
(>100%)
(7,222)
(88)
(20)
(80)
>100
52
(42)
na
(42)
(50)
82
TONTON
A WORLD-CLASS VIDEO PORTAL
Bring digital media into a new level in terms of user experience and advertising experience
INNOVATIVE
•
Local Catch-up TV from MPB TVN
Hollywood/Asian Catch-up TV (selected titles like Ghost Whisperer, Grey’s Anatomy,
Korean dramas)
30,000 hours of TV Gold from TV3 archive
Full-length Feature Films
Exclusive Web Content – WWE, Dilbert, Guiness World Records, Extensions of TV brands like
AJL, Shout!, etc.
Customised Channels – Gua TV, Hot TV, Fly TV, One TV, KRU
•
•
•
•
Social – can chat, link to Facebook and Twitter
Linked to all the MPB TV Schedules
So easy to make playlists – and share with the world
Brings together all the videos and catch-up TV from TV3, ntv7, 8TV, TV9 and Gua websites.
•
•
•
•
•
INTERACTIVE
By having one brand, TonTon can deliver more than just catch-up TV - can now deliver movies,
web exclusives, etc. all on one portal
INTELLIGENT
•
•
•
•
•
TONTON knows the user through 5 User Targeting Factors
Demographic – user’s basic stats
Behavioural – user’s viewing habit history
Contextual – what users are currently doing on TonTon
Location – where users are
Target the user and serve them content and advertising they want.
83
Q4 2011 OPERATIONAL RESULTS
Average page views
Stations
Average unique visits
Average video views
Q4 2011
(Omniture)
Q4 2011
(Omniture)
Q4 2011
(Omniture)
TV3
1,979,714
338,404
126,631
8TV
216,794
58,079
ntv7
324,711
85,402
TV9
185,760
37,623
GUA
544,869
129,655
TONTON
7,463,817
543,217
MICROSITES
TOTAL
-
10,715,665
-
1,192,380
105,475
2,305,388
672,260
3,209,754
84
CORPORATE & OTHER BUSINESSES
85
CORPORATE & OTHER BUSINESSES
MPB
GB
Others
Consol
Adjustment
Total
Actual
RM'000
Gross Revenue
2011
2010
Growth %
N/A
23,706
21,348
11
5,670
5,105
11
(25,652)
(22,696)
(13)
Net Revenue (after royalties)
2011
2010
Growth %
N/A
23,706
21,348
11
5,670
5,105
11
(17,049)
(14,575)
(17)
EBITDA Before EI
2011
2010
Growth %
303,150*
130,491*
>100
Depreciation &
Interest Expenses
2011
2010
Growth %
30,547
30,345
(1)
PBT / (LBT) Before Associate
Before EI
2011
2010
Growth %
272,603
100,146
>100
* MPB EBITDA contains dividends from subsidiaries
6,142
(765)
>100
NA
6,142
(765)
>100
(238)
(6,788)
96
57
39
46
(295)
(6,827)
96
(334,494)
(145,375)
(>100)
(6,903)
2,584
>100
(327,591)
(147,959)
(>100)
3,724
3,757
(1)
12,327
11,878
4
(25,440)
(22,437)
(13)
23,701
32,968
28
(49,141)
(55,405)
11
86
GROUP CHALLENGES
87
INDUSTRY PLAYERS ACROSS PLATFORMS
Free to Air (FTA) Broadcasters
Pay TV Operators
Telcos with Video Services
(Mobile TV)
IPTV Players
Key Over the Top Television
(OTT) Players
Media Prima will continue to invest in platform agnostic content
88
GROUP CHALLENGES – INTERNAL




TV Networks
Radio Networks
Competitive ADEX market
Audience share fragmenting
Returning ntv7 back to profitability
Increasing operating costs
 To ensure profitability of One FM
 Hot FM to retain No.1 position
 Fly FM to gain a dominating no. 2 & a
real threat to Hitz FM
Outdoor
Print
 Managing concession/site owners
 Protect operating margins
 Invest in “creativity” & new
technology
 Managing cost
 Rejuvenation
 Resolving future of NSTP
Others
 International
 Pay channels
New Media
 Monetising portals
 Online subscription
Content
 “Big Hit” content
 International & local distribution
Managing an Expanded Group in Challenging and Competitive Environment
Implementation of “Best Practice” and “Benchmarking”
on creativity, production, and operations
Human Capital investment, retention & development
amidst highly stressed work environment
To improve on effective implementation of Planning
cycle (budget & business review) which remains a
challenge
Conducive work environment and teamwork
Successful implementation of the ICT and Engineering
Blue Print
89
GROUP CHALLENGES – EXTERNAL



Expected to be a challenging year
Malaysian GDP (2012) forecasted at 4% against 5% in 2011 (Source:
BNM)
ADEX is expected to register mild growth in tandem with GDP
Intense
Competition


Continued intense competition from STAR, RTM and ASTRO
Fragmentation of audience expected to persist
Rising Costs

Increase in operating costs due to an inflating process and effects of a
recovering economy
Regulatory

Continued strict regulatory regime impacting creativity and on ability to
enhance revenue
Balancing Economic
& Social Obligations

Balancing economic and social obligations due to increased scrutiny
from public and regulators
Restoring Market
Value


To restore value for the benefit of shareholders
Improve share price of Media Prima
Economic
climate
90
GROUP STRATEGY
91
GROUP-WIDE STRATEGY : CREaM-O
IMPACT ON FINANCIAL POSITION
HIGH
LOW
•
•
•
•
•
•
COMPLETE
OPTIMIZATION
REGIONALISATION
MEDIA PLATFORM
& INTEGRATION
Consolidate TV
Consolidate NSTP
Establish Primeworks
Expand Radio
Expand Outdoor
Expand New Media
• Rejuvenate TV, Primeworks &
NSTP (quality & multiple
platforms)
• Enhance content & branding for
Print
• Integration
• Between platforms
• Operational efficiency
• Expand into regional market
(selectively)
• Content (TV & Primeworks)
for export
• Smart partnership and
Collaboration
for
TV/NSTP/Primeworks/Radio
CONTENT & CONSUMER BASED STRATEGY
EXPANSION INTO CONSUMER & CONTENT
• New platforms:• Content for RTM/Al-Hijrah/ASTRO &
others
• High Definition Content for TV
• TV/NSTP/Radio/Primeworks content for
new media & mobile devices
EXPANSION INTO PAY CHANNEL
•
Pay TV channels
• ASTRO
• TM Unifi
• YTL Hybrid
• ABN
• Other platforms
• Monetizing archives at Print & TV
•
•
Increase revenue from Radio, Outdoor & New Media
Increase non-advertisement revenue (Content & Circulation)
IMMEDIATE
IMPLEMENTATION PERIOD
MEDIUM TERM
92
GROUP KEY FOCUS IN 2012
Optimise Revenue
Growth
 Best, creative and quality content – NSTP, TVN, Primeworks, RN,
New Media & Outdoor
 Increase market share – ratings & circulation
 Content for multiple platforms and markets
Enhance Branding
 Cross-promotion over multiple platforms (A&P and publicity)
 Revamp and repositioning of some critical products (NSTP,
Primeworks & TVN)
Cost Management and
Operational Efficiency

o
o
o
o
o
Continue with efficiency and integration strategies.
Group wide tax planning;
Amalgamation of support services – Finance, IT, Human Resources;
Optimization of Group premises and properties;
Integrate regional offices;
Centralized procurement of policies and operations.
Expansion of Revenue
Source




Advertisement income – new products and new clients
Selected integrated sales and marketing across all platforms
New media revenue – alt-media & e-media
Consumer, content and subscription income
93
OTHERS
94
SNAPSHOT FY 2011

The Group recorded EBITDA (before EI) of RM406.3 million and PATAMI (before EI) from continuing operations
of RM205.4 million.

Despite the slower sales in Q3 2011 due to the economic uncertainties, TV Networks’ topline numbers grew by
6% against FY2010. Revenue for FY 2011 grew by 5% against FY 2010. Fourth quarter revenue are historically
higher as advertisers utilised their remaining advertising budgets during the last quarter as well as due to the
festivities and the holidays.

NSTP’s Advertising Revenue grew by 12% against FY2010 on the back of continued success of Harian Metro and
contribution from E-Media. Continuous improvement in Malay readership is the main driver for growth.

Stiff competition resulted in the decrease in revenue for Radio Networks. However, the Group’s flagship radio
station, Hot FM, showed improvement in terms of listenership to No.2 position among all stations and
maintained its No.1 position for age 35 years and below.

Outdoor continues to post solid financial and operational performance by registering a growth of 12% against
FY2010 as a result of renewals as well as new big ticket customers.

Taking into account operational results and excluding exceptional items, the Group achieved core PATAMI of
RM205.4 million, higher than FY2010 of RM185.3 million.
95
SIGNIFICANT AWARDS/ RECOGNITION
96
DEBTORS AGEING / PROGRAMME STOCKS
1. Ageing for debtors
Maximum not more than 6 months
Breakdown
Others (TVN, RN, PWS, Alt, Monkey
Bone) : Not > 1 year
2. Policy for programme stocks
To provide for stocks aged more than 3
years and License Period expiring
between 3 to 6 months.
97
AUDITORS’ REMUNERATION (2011 VS 2010)
PRICEWATERHOUSECOOPERS
Statutory Audit
- Audit of existing Group at start of the year
- Audit related services (assess FRS impact)
Tax Services
Accounting Advice
2011
2010
RM'000
1,390
10
1,314
85
1,400
334
182
1,916
1,399
406
591
2,396

The Auditors’ remuneration has increased from RM1.31 million to RM1.39 million as a result of audit fee
revision by 6%. The audit related services relates to the review of the divestment of Ghana subsidiaries.

Tax Services consist of yearly computation and submission of tax return to the Inland Revenue Board.

Accounting advice in 2011 relates to consultancy services in relation to the internal group restructuring.
98
DIRECTORS’ REMUNERATION (2011 VS 2010)
2011
D ire c to rs ' R e m une ra tio n
Fees
Salaries and emoluments
2010
R M ' 000
885
4,305
863
3,156
EPF
699
553
Share based compensation
-
636
Others
472
6,361
98
5,306
99
DIRECTORS’ REMUNERATION (2005 – 2009)
2009
2008
Direc tors' Remuneration
Fees
Salaries and emoluments
EPF
Bonus
2007
2006
2005
RM'000
471
3,880
525
3,714
490
3,422
374
2,631
360
1,184
559
610
520
436
226
43
4,953
170
5,019
98
4,530
60
3,501
68
1,838
100
DIRECTORS’ REMUNERATION (2005 – 2011) - DETAILED
2011
2010
2009
2008
D ire c to rs ' R e mune ra tio n
Non-executive Directors:
Fees
Allowance
2006
2005
R M' 000
885
530
863
468
471
444
525
262
490
252
374
219
360
403
64
60
84
48
46
40
87
472
1,951
98
1,489
43
1,042
170
1,005
98
886
60
693
68
918
3,376
2,321
3,110
3,116
2,438
1,928
655
EPF
Bonus / Others
2007
Executive Directors:
Basic salaries and bonus
Allowance
399
367
326
336
732
484
126
EPF
635
493
475
562
474
396
139
Share based compensation
-
636
-
-
-
-
-
6,361
5,306
4,953
5,019
4,530
3,501
1,838
101
KEY PERFORMANCE INDICATORS – BALANCED SCORECARD
SYSTEM
KEY PERFORMANCE INDICATORS
1.0 Primary
-
Group EBITDA and PATAMI (excluding Exceptional Items)
Group Return on Net Assets of 15%
2.0 Secondary
-
Group revenue targets and associated company
Individual subsidiaries and financial target (EBITDA)
Qualitative measures:
* Developing new sources of business growth
* Developing Human Capital
* Team Leadership and Brand Building
* Strategic Orientation (Execution of Value Creation plan)
* Investor Relations and Public Trust (Based on survey)
* Corporate Governance and Risk Management
102