2Q20 Results Meeting & 2H20 Highlights 14 August 2020 Virtual - - PowerPoint PPT Presentation

2Q20 Results Meeting & 2H20 Highlights

14 August 2020 Virtual Conference

2Q20 Performance Summary

Quarterly Financial Results ▪ 2Q19 - 2Q20

95 92 66 186 109 11% 10% 7% 19% 13%

2Q19 3Q19 4Q19 1Q20 2Q20

• 7%YoY
• 15%QoQ

542 443 465 500 586 262 270 250 376 221

96 174 181 109 26

900 887 895 985 833 44% 44% 41% 56% 53%

2Q19 3Q19 4Q19 1Q20 2Q20 (THB mn, %)

Revenue and GPM Net Profit and NPM

Commerce Media Music & Others Commerce Media Music & Others %GPM (THB mn, %) +14%YoY

• 42%QoQ

%NPM

• Highest record

commerce revenue from higher of every sales channels

• Lower cost of CH8

from reductions in content cost, license, USO and MUX fees

3

• A rise in net profit

from higher GPM and well-managed expenses

6M Financial Results ▪ 1H19 vs 1H20

205 295 11% 16%

1H19 1H20

1,105 1,086 549 597

175 135

1,829 1,818 45% 54%

1H19 1H20

• 1%YoY

(THB mn, %)

Revenue and GPM Net Profit and NPM

Commerce Media Music & Others Commerce Media Music & Others %GPM

(THB mn, %)

+44%YoY

%NPM

• Additional media

revenue from content licensing without additional cost

• Lower cost of CH8,

radio and music in proportion to a decrease in each revenue

4

• A rise in net profit

from higher GPM and lower finance cost from disappearance of deferred interest

Commerce Performance

236 191 190 231

261

242 217 239 239

270

65 35 36 29

55

542 443 465 500

586

68% 66% 64% 65%

68%

2Q19 3Q19 4Q19 1Q20 2Q20

%GPM

(Revenue, THB mn) YoY : +8% QoQ : +17%

Inbound Outbound Online & Others

Key ey Highlights

• Improved inbound & outbound sales

momentum by 13%QoQ from growing customer to 1.4m people, coupled with sales channel expansion in Q1-Q2

• Predictive Dialing System (PDS) adopted more

precisely to fully enhance efficiency of the call center system in maximizing customer contact

• “RS Mall Mid Year Super Sale”, another grand

sales promotion continued to boost up the sales efficiency despite the market downturn

• High GPM at 68% showing the company’s

ability to manage its overall product combination that most profitable and offering products that specifically address health care amid Covid-19 situation Leverage on expanding customer base & sales channels Effective marketing campaign and promotion High gross margin maintained

5

1.4M customers

A fully implemented software tool

TV Performance

188 204 170 336

198 193 209 174 336

199

• 33%
• 26%
• 53%

36%

4%

2Q19 3Q19 4Q19 1Q20 2Q20

Satellite TV %GPM

(Revenue, THB mn) Key ey Highlights

• 2Q20 TV ADEX contracted as a result of

Covid-19 pandemic and weak private

• consumption. However, people have had to

spend more time at home, resulted in an unchanged of the number of TV viewers

• Adaptability of Channel 8’s sales and content

production approaches, including content management in international markets and on

• ther online platforms resulted in similar

quarterly income of Channel 8 during 2019

• Content production cost plunged over 25%

compared to quarterly cost in 2019 from content cost management and lower operating cost benefited from license fee waiver, a reduced rate of annual contribution to USO fund and a ceasing of MUX fee since June A huge drop in TV ADEX Unmatched CH8’s performance Effective cost controls & benefits YoY : +3% QoQ : -41%

6

Radio Performance

47 42 55 33

23

23 19 21 6

70 61 76 39

23

70% 78% 72% 81%

57%

2Q19 3Q19 4Q19 1Q20 2Q20

(Revenue, THB mn)

%GPM

Key ey Highlights

• “COOLfahrenheit”, No.1 radio station for Easy

Listening category, showing a decrease in revenue in accordance with overall industry and no activities for listeners during Covid-19. However, both popular “COOL Outing” and “Ink Eat All Around” activities have resumed in Jul

• “COOLanything” new feature under the

concept of “Enjoy music and shopping in one app”, developed to support the commerce business Radio media industry shrank and no activities-linked YoY : -68% QoQ : -42%

7

Media Event

Turn online music fans into customers

Start in Q3

Music & Others Performance

55 86 83 74

24

41 88 98 35

2 96 174 181 109

26

55% 64% 62% 64%

66%

2Q19 3Q19 4Q19 1Q20 2Q20

(Revenue, THB mn) Key ey Highlights

• Main revenues from YouTube, music

downloading and to license music catalogue to bolster income streams

• A ceasing of events and concerts during Covid-

19 measures causing a decline in other revenue Online- generated revenue Preventive measures implemented for Covid-19 YoY : -73% QoQ : -76%

%GPM

8

Music Event & Concert

2H20 Highlights

Entertainmerce Strategy

10

RS GROUP 8M Age 40+ Urban & Rural 70% 5M (1.4M Customers) Age 35-55 Urban 70% 32M subscribers & 9M followers Age 18-50 Nationwide 4M Age 25-44 BKK 65% REACH

Commerce Media | TV Media | Radio Music

11

Content marketing through “Storytelling” Campaign & Promotion

Commerce Business Highlights

2x Inbound sales uplift

12

Product Lineup Technology Adopted Partner Customer Frequency

1.4 >> 1.6 M

+14%

1.9 >> 2.5 x/Year

+32%

S.O.M. DTX Probiotics S.O.M. Multiplus Collagen S.O.M. Choles S.O.M. OVOMOV S.O.M. Probio-10 REJU Real Bird Nest Drink Meal Replacement

>20 SO per month

Commerce Business Highlights

Fashion FMCG Home & Living

TV Business Highlights

13

New Programs TV Entertainmerce Programs Expected THB 50m from licensing to be booked in 2H20 Expected THB 1m in revenue per slot

Radio Business Highlights

14

Lifestyle Online Shopping

• No. of active listener : 150K per day

Product : Lifestyle & Gadget Target customer : Age 25-44, BKK 65% Storytelling : By COOLJ

To boost online sales by 80%YoY

Music Business Highlights

15

To turn >30M music fans into customers, starts in Oct

RS Investor Relations +662 037 8125-6 http://www.rs.co.th/investor.html ir@rs.co.th https://www.facebook.com/RSInvestorRelations/ https://twitter.com/rs_ir ir_rs