OPPORTUNITY DAY August 30, 2019 Disclaimer The information - - PowerPoint PPT Presentation

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OPPORTUNITY DAY August 30, 2019 Disclaimer The information - - PowerPoint PPT Presentation

OPPORTUNITY DAY August 30, 2019 Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential and is provided by JKN G lob al Media Public Company Limited (the Company) to you solely for


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OPPORTUNITY DAY

August 30, 2019

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The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by JKN Global Media Public Company Limited (the “Company”) to you solely for your reference. This presentation is confidential and its content may not be copied, reproduced, redistributed, quoted, referred to or otherwise disclosed, in whole or in part, directly or indirectly, to any third party without the prior written consent of the Company. Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. None of the Company respective directors makes any representation or warranty (express or implied) regarding, and assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. None of the Company or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities in Thailand or any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. 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. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar

  • meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a

result of various factors and assumptions.

Disclaimer

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Agenda

Company Overview Financial Highlights Q&A Business Outlook

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COMPANY OVERVIEW

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Company Established with paid-up capital 1 mil Baht JKN Dramax channel operated.

Digital TV was launched for public in Thailand License of CNBC channel from National Broadcasting Company Universal (NBC) Listed in The Market for Alternative Investment (mai)

International sales -Indian series

A worldwide distributor of BEC

Company Background

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99.99% 99.99% 99.99% 99.99%

The TV Station broadcasting through CabSat and IPTV system under channel called “JKN Dramax”. We have been Doing research to develop our business as Integrated Marketing Communication Distributor. We have been Doing research to develop TV news channel “CNBC Thailand”. We have been Doing research to develop our business as the entire financial and investment training institution.

Company Structure

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To be the Number 1 global content management and distribution company in Thailand and CLMV countries.

Corporate Vision

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Digital TV Cable & Satellite TV Home Entertainment Over The Top (OTT) Merchandise Publishing Ancillary

Program rights

Di Distrib ibution

Our company is expert in communicating with world-class contents manufacturer such as, Factual Entertainment, Fiction Entertainment, Asian Fiction, Animation and News. The Company has divided all contents for distribution by providing. Supplying and managing contents from around the world.

All our content is instant content which already translated and narrated into Thai before deliver to our clients.

Our content is now cover all kind

  • f platform Such as digital TV ,

Cable TV satellite Home Entertainment and Internet TV. Loc Localiz izatio ion Imp mpor

  • rt

Content Platforms Content management

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Exclusive Rights

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Sole Distributor

The company imports worldwide contents from world-class companies which most of content licenses is under the Output Deal Term. "The Output Deal Term" is the agreement that licensee receives the first option to purchase and distribute the content. The company's famous contents are under the Output Deal Term such as Hanumann and NaKhin.

The company imports worldwide contents from world-class companies which most of content licenses is under the Output Deal Term. "The Output Deal Term" is the agreement that licensee receives the first option to purchase and distribute the content. The company's famous contents are under the Output Deal Term such as Hanumann and NaKhin.

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Excusive rights

Exclusive rights

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Program rights 8 Categories

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FINANCIAL HIGHLIGHTS

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28 352 424 446

2Q 2018 1Q 2019 2Q 2019

304 457 846 1156 1423

698 870 2014 2015 2016 2017 2018 6M2018 6M2019

Financial Highlight

Program right

Media Product Other

Revenue (THBm)

Revenue ▪ Total revenue of the company and its subsidiaries increased from the increasing of revenue from program rights. ▪ The company continues its acquisition of new content rights in order to support the growth of the business.

Revenue by segment

Growth 25%

92%

4% FY 2018

98%

0% 6m 2019

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Content platforms 1950 - 2010 2011 - 2017 2018

Analog TV Cabsat TV Analog TV Cabsat TV DTT Online Streaming Cabsat TV DTT Online Streaming DVD Blu-ray USB DVD Blu-ray USB Cassette Tap CD

Revenue by platforms (THBm) 4.5 57.9 268.7 39.2 233.8 178.5 119.7 128 351.3 8 32.6 84.1 265.5 104.7 48 5 133.3 100 200 300 400 2015 2016 2017 Cabsat Home DTT VOD DTT/Cabsat Home/VOD Cabsat/Home DTT/VOD Cabsat/VOD 178 371 179 433 11 121

  • 100

200 300 400 500 2018

Adaptability

Adaptability

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Revenue by platforms (THBm) 5 45

  • 120

84 33

  • 39
  • 48

58

  • 26

128 266

  • 234

8 5 269 2

  • 351

105

  • 179

33 133 178 6 371 433 21 121

  • 179

11 59 127 200 211 19 219 18

  • 50

100 150 200 250 300 350 400 450 500 Cabsat Cabsat/VOD Cabsat/Home DTT DTT/Cabsat DTT/VOD DTT, Cabsat, VOD Home VOD Home/VOD 2015 2016 2017 2018 6m2019

Adaptability

Revenue by platforms

Unit: Million Baht 1Q 2018 % 1Q 2019 % 2Q 2019 %

Cabsat 86 26% 43 10% 143 32% DTT 201 61% 274 67% 156 35% Home 0% 0% 0% VOD 40 12% 94 23% 143 33% Grand Total 327 100% 411 100% 445 100%

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Revenue by platforms (THBm) 5 45

  • 120

84 33

  • 39
  • 48

58

  • 26

128 266

  • 234

8 5 269 2

  • 351

105

  • 179

33 133 178 6 371 433 21 121

  • 179

11 59 127 200 211 19 219 18

  • 50

100 150 200 250 300 350 400 450 500 Cabsat Cabsat/VOD Cabsat/Home DTT DTT/Cabsat DTT/VOD DTT, Cabsat, VOD Home VOD Home/VOD 2015 2016 2017 2018 6m2019

Adaptability

Revenue by platforms

Unit: Million Baht 6m 2018 % 6m 2019 % Change %

Cabsat 88 14% 186 22% 98 111% DTT 412 66% 430 50% 18 4% VOD 121 20% 237 28% 116 96% Grand Total 621 100% 853 100% 232 37%

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Content by Geographic

574 MB 278 MB

Thailand Export

14% 28% 58% 0% 10% 20% 30% 40% 50% 60% 70% Indian Philippines Other 101 369

470

100 200 300 400 500

Total Thailand Export

Revenue Revenue - Categories Backlog

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Expenses

▪ The increase in costs resulted from increased amount of rights held by the Company ▪ Administrative expense increased from the last year was resulting from the increase in employee cost to support the growth of the business and new business such as news station under the name of JKN CNBC, and the increase in loss on exchange rate of THB 42.48 million due to the fact that the Thai Baht value appreciated against US Dollar.

Cost of Program rights Cost of media Cost of goods sold SG&A 6m 2019

232 255 558 830 1068 636 2014 2015 2016 2017 2018 6m2019

Financial Highlight

75% 1% 1% 23%

55% 14% 59% 14%

55% 17%

0% 20% 40% 60% 80% Cost of program right SG&A 2017 2018 6m 2019

Total expense (THBm) Expenses Expenses per total revenue

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Selling & Administrative expenses

10 8 2 3 6 5 2 4 6 8 10 12 Events Marketing AD & PR Other 6m 2018 6m 2019 21 2 0.5 10 30 4 14 10 5 10 15 20 25 30 35 Employee cost Profession fee G/L on exchange rate Doubtful debts Other 1Q2018 1Q2019

Unit : Million Baht

6m2019 6m2018 YoY Change % Change

Events marketing

2.68 10.03 (7.35) (73.28%)

Advertising & PR

6.41 8.22 (1.81) (22.02%)

Other

4.55 1.53 3.02 197.39%

Total selling expenses

13.64 19.78 (6.14) (31.04%)

Unit : Million Baht

6m2019 6m2018 YoY Change % Change

Employee cost

64.03 43.38 20.65 47.60%

Professional fee

7.85 5.34 2.51 47.00%

Loss on exchange rate

42.48

  • 42.48

100.00%

Provision for doubtful accounts

  • (0.08)

0.08 (100.00%)

Other

19.25 18.54 0.71 3.83%

Total administrative expenses

133.61 67.18 66.43 98.88%

Selling Expenses Admin Expenses

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35 Gr Gros

  • ss

s pr prof

  • fit &

t & Gr Gros

  • ss

s pr prof

  • fit mar

t margi gin ▪ The increase in net profits and net margin in 6 month period of 2019 from last year was due to the rise in revenue from program rights, and most of the cost of program rights is the amortization expenses which is increase rate lower than the growth of income. ROA & ROE OE ▪ The increase of ROE was due to the increase in total revenue and net profit margin. The increase of ROA was due to significant growth in

  • perating results.

Financial Highlight

107 259 395 488 525 375 35.2% 56.7% 46.9% 42.3% 37.4% 43.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 100 200 300 400 500 600 2014 2015 2016 2017 2018 6m 2019 Gross profit Gross profit Margin 49 133 164 188 227 150 16.3% 29.2% 19.4% 16.2%16.0% 17.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 50 100 150 200 250 2014 2015 2016 2017 2018 6m 2019 Net Profit Net profit Margin 12.6% 15.0% 12.0% 7.8% 7.1% 8.2% 50.9% 46.4% 35.2% 15.8% 11.7% 14.2% 2014 2015 2016 2017 2018 6m 2019 ROA ROE Gross profit (THBm) ROA & ROE Net profit (THBm)

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Financial Highlight

730 1,044 1,696 3,139 3,251 3,680 539 660 1,147 1,312 1,197 1,568 191 384 549 1,826 2,054 2,112 2.8 1.7 2.1 0.7 0.58 0.74 0.5 1 1.5 2 2.5 3 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2014 2015 2016 2017 2018 30.6.19 Asset Liabilities Shareholder's equity Debt to equity ratio (time) 0.91 0.78 0.56 1.34 4.58 4.28 2014 2015 2016 2017 2018 6m 2019 1.1 0.99 0.97 1.11 1.33 2015 2016 2017 2018 6m 2019 Current ratio (time) Intangible asset turnover (THBm)

Balance sheet composition (THBm) & D/E ratio

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Intangible assets – Program rights

CAPEX (THB Million)

Target 2019 Program rights 1,000 CNBC news Channel 50 Content & Broadcast system 50 Total CAPEX 1,100

296 62 234 340 120 447 965 389 1,023 777 616 1,184 776 779 1181 637 457 1368

Acquisitions Amortize program rights NBV 2014 2015 2016 2017 2018 6m2019

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Accounts receivable

Trade receivables -unrelated 30.6.2019 % 31.12.61 % Change % Not yet due 710,439 51% 579,567 52% 130,872 23% Past due Up to 3 months 270,332 19% 136,898 12% 133,434 97% 3 – 6 months 278,738 20% 90,792 8% 187,946 207% 6 – 12 months 130,765 9% 302,840 27% (172,075)

  • 57%

Over 12 months 2,138 0% 8,151 1% (6,013)

  • 74%

Total 1,392,412 100% 1,118,248 100% 274,164 25% Less : Allowance (2,028) 0% (2,028) 0% 0% Net Trade receivables 1,390,384 100% 1,116,220 100% 274,164 25% Day in AR turnover 262 Days 251 Days

As of 16 May 2019, the Company collected debts from trade receivables amounts Baht 100 million.

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BUSINESS OUTLOOK

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304 457 846 1156 1423

864 2014 2015 2016 2017 2018 2019

Revenue Target

47%

Backlog 470

20%

Digital TV CNBC International Market

Revenue (THBm) & Target 2019

Backlog

Actual 6m 2019

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JKN acquired the top ranks Indian series with high budget productions for selling international markets, such as Porus, Prithi Vallabh, and Vigharnarta Ganesh. Last year, we were selling our series for the amount more than Baht 600 million to The international markets include Cambodia, Lao PDR, Myanmar, Vietnam.

Indian Series

In International Sales les - Master Pieces of Indian Series

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We are the sole worldwide sole distributor of BEC World* which we got the exclusive rights of more than 90 series of Channel 3HD, including romantic comedy, melodrama, and horror for international sales. We were selling the Channel 3HD series to Philippines and Malaysia.

Thai series

in inter ernational sales les - Great series from Channel 3HD

*Excluding China, Macau, HongKong, Cambodia, Myanmar, Vietnam

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International Content Markets 2019

MAR 18-20

HK FILMART (MAR 18-20)

AUG 21-23

BCWW, Seoul - August 21-23

AUG 28-29

Content Asia Summit, Singapore - August 28-29, 2019

OCT 14-17

MIPCOM, Cannes – October 14-17, 2019

DEC 02-05

ATF, Singapore - December 2-5, 2019

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HK Flimart 2019

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HK Flimart 2019

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Material

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Vietnam Telefilm – June 2018

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MIP COM FRANCE – Oct 2018

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ATF Singapore – Dec 2018

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The company licensed from CNBC to translate items with content about business and economic broadcasts around the world in order to sell to the broadcast tv channels as Thailand language. Domestic Thailand In addition, the company has received permission to produce items in the format of CNBC by MC Thailand. At present, the company has started to sell items made the translation with Channel 3 and Bright TV. In the future, the company will bring the winnings from the IPO to develop Studio filming for CNBC.

ตัวอย่างรายการในเครือ CNBC

JKN CNBC Project

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CNBC Studio

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CNBC Project

Executive T raining Session, CNBC Headquarters, Singapore January 7 - 10, 2019

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Q & A