RS PCL 2016 Results Briefing 28 February 2017 Harp Meeting Room, RS - - PowerPoint PPT Presentation

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RS PCL 2016 Results Briefing 28 February 2017 Harp Meeting Room, RS - - PowerPoint PPT Presentation

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RS PCL 2016 Results Briefing 28 February 2017 Harp Meeting Room, RS Building I RS PLC. Proprietary & Confidential http://www.rs.co.th/investor.html Disclaimer This Presentation has been prepared by RS Public Company Limited. The Information

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RS PLC. Proprietary & Confidential http://www.rs.co.th/investor.html

RS PCL

2016 Results Briefing

28 February 2017

Harp Meeting Room, RS Building I

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Disclaimer

This Presentation has been prepared by RS Public Company Limited. The Information contained herein includes forward looking statements which are based on current expectations and assumptions about future events. All Statements other than statements of historical facts, including, among others, statements regarding RS Public Company Limited’s Future financial position and results, outlook for 2017 and future years, business strategy and objectives of management for future operations, are forward- looking statements. No representation or warranty is made as to the accuracy, completeness or reliability

  • f the information. Any forward looking information in this presentation has been prepared on the basis of

a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by RS Public Company Limited. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

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  • Amid slow economic growth, weak private consumption and the suspension
  • f regular broadcasts during the mourning period, RS’s revenue dropped

YoY due mainly to revenue shortfall from satellite TV and radio businesses.

  • Media business earned THB1.81bn, down 19% YoY following contraction in

ad spending for satellite TV and the suspension of broadcasts.

  • Health & Beauty business was relatively stable at THB228mn due to

suspension of sales via TV media in 4th quarter and sluggish economy’s effect.

  • 2016 net loss was THB102mn, compared to net profit of THB122mn in 2015

following lower revenue from satellite TV and music businesses and higher marketing expenses of beauty business.

2016 Highlight

3

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(THB m) Y15 Y16 %YoY

Revenue 3,728.7 3,124.9

  • 16%
  • Revenue from sales

795.5 838.3 +5%

  • Revenue from services

2,933.2 2,286.6

  • 22%

COGS 2,703.0 2,331.0

  • 14%
  • Cost of sales

379.6 399.8 +5%

  • Cost of services

2,323.4 1,931.2

  • 17%

Other income 51.6 123.6 +140%

SG&A 876.4 960.6 +10%

Finance costs 81.1 83.4 +3% Tax

  • 12.3
  • 24.2
  • 97%

NPAT (Parented) 121.6

  • 102.1
  • 184%

2016 Financial results - as stated in FS

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(THB m) Y15* Y16 %YoY

Revenue 3,780.3 3,248.5

  • 14%

1) Media 2,246.1 1,814.7

  • 19%

2) Health & Beauty 231.9 227.9

  • 2%

3) Music (Inc. Artist Management*) 463.5 321.6

  • 31%

4) Event 707.4 753.2

  • 6%

5) Other Revenues 131.4 131.1

  • 0%

COGS 2,703.0 2,331.0

  • 14%

SG&A 876.4 960.6 +10%

Finance costs 81.1 83.4 +3% Tax

  • 12.3
  • 24.2
  • 97%

NPAT (Parented) 121.6

  • 102.1
  • 184%

GPM +27.5% +25.4% NPM +3.2%

  • 3.1%

2016 Financial results - by BU

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* Artist Management earned THB89mn in 2015 and THB87mn in 2016.

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Media

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Media Industry Update - ADEX

Source: AGB Nielsen, DAAT

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(THB m)

937 1,348 1,548 1,378 2,253

2013 2014 2015 2016 2017F

Media - Television

8

  • Growth of CH8 from higher sport

and news programs’ rating and utilization (from 45% to 70%)

  • Lower satellite TV revenue from

drop of overall industry while well-managed cost

  • 2017F target rating to 550K (0.8%)

viewers by end of 2017

  • 35% increase in ad rate
  • Secure 50% of sales target
  • Avg. Jan’17

600K / 0.9%

  • Avg. Jan’17

1,900K / 2.9% Latest 1,015K / 1.5%

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520 512 522 401 404

2013 2014 2015 2016 2017F (THB m)

Media - Radio

9

  • “COOL Fahrenheit 93” remains

No.1 ranking for Easy Listening category and No.2 nationwide, surveyed by AGB Nielsen

  • Well-established brand, strong

revenue generated to the Company

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Health & Beauty

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23 65 67

Dec'16 Jan'17 Feb'17

  • Re-focusing on “Telesales” and

maximize its own channel’s airtime

  • Expanding call center seats
  • Creating umbrella brands
  • Increase in no. of SKUs
  • Reaching out to mass market

1 232 228 437

2013 2014 2015 2016 2017F (THB m)

Health & Beauty

11 Mid-16

45

End 2016

100

Mid-17

230 3-month H&B total sales

(THB m)

Skin Care [MAGIQUE] Supplement [S.O.M] Hair Care [REVIVE]

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R&D Laboratory Manufacturer Marketing Media Distribution Delivery

OEM Kerry Express

Remaining capacity Remaining capacity Remaining capacity

Health & Beauty - Value Chain

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Health & Beauty - Marketing Plan

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End 2016 1Q17 2Q-4Q17

Distribution Channel

390 branches 4 Stores 50 branches 80 branches 8 branches 495 stores 129 stores 91 stores 18 stores 30 stores 35 stores 180 stores 1,500 stores 1,000 stores 200 stores 400 stores 250 stores 160 stores 55 stores

Media Plan

Pop up Leaflet Standee Shelf display Digital screen FB Post Blogger/User review Online VDO Advertorial

End 2016 1Q17 2Q-4Q17

Distribution Channel

390 branches 4 Stores 50 branches 80 branches 8 branches 495 stores 129 stores 91 stores 18 stores 30 stores 35 stores 180 stores 1,500 stores 1,000 stores 200 stores 400 stores 250 stores 160 stores 55 stores

Media Plan

Pop up Leaflet Standee Shelf display Digital screen FB Post Blogger/User review Online VDO Advertorial 90 stores per quarter

Month 4-6 Interest

Month 7-9 Consider

Month 1-3 Awareness

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Music

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899 566 464 322 314 2013 2014 2015 2016 2017F

15

Music

(THB m)

  • RS ceased physical record

production activities, aligning with the changing behavior of music consumers

  • Focusing on YouTube and music

streaming

New Model “Music Marketing and Services”

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Event

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571 350 707 753 112

2013 2014 2015 2016 2017F

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Event

(THB m)

  • There was large-scale project

in 2015-2016 amounting to THB 441m and 606m

  • In 2017, concentrating to In-

house events that support RS’s media channels

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Revenue Contribution by BU

(THB m)

2017F

Total Revenues 3,576

1) Media 2,713 Television 2,302

  • Channel 8

1,945

  • Channel 2

68

  • Sabaidee TV

240

  • You Channel

36

Radio 404 2) Health & Beauty 437 3) Music 314 4) Event 112

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Others

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1,727 1,060 1,218 1,311 1,899 1,768 4,844 4,139 31 Dec 15 31 Dec 16

Non-current liabilities Current liabilities Equity

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Asset Liabilities & Equity

2,905 3,189 1,939 950 4,844 4,139

31 Dec 15 31 Dec 16

Non-current asset Current asset

Digital TV license 1,802 Digital TV license 1,666 Cash 762

Cash 104 A/R+ Accrued Income 791

A/R+ Accrued Income 567

Intangible A/S 324

Intangible A/S 552

A/P 1,419 A/P 589 เงินกู้ยืม +1,150

Payable for Digital TV 1,106 Payable for Digital TV 1,468

Balance Sheet

(THB m)

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Remedial Measures by NBTC

1 2 Must Carry - Reduce cost by THB 2.5m per month for 3 years since 20 Dec 2016 3 NBTC fee (first payment of 2%) and USO fund fee (second payment of 2%)

  • YE2016 - Reverse NBTC fee (after tax) by THB 8m

USO fund fee (after tax) by THB 89m

  • YE2017 - Decrease in payment by appx THB 20m
  • No. of

Installment

Payment Period Amount (Excl. VAT) Old New

4 May’17 415.0 207.5 5 May’18 377.0 207.5 6 May’19 377.0 188.5 7 May’20

  • 188.5

8 May’21

  • 188.5

9 May’22

  • 188.5

Total 1,169 1,169

Net saving cost by THB 46m (saving interest expense + interest charge 1.5% + LG fee)

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22

Warrant Issuance (RS-W3)

22 Feb

BOD Meeting

5 Apr

AGM

18,19 Apr

Record date / Book closing

[2 May]

Warrant issued date

31 Oct

1st exercise date

Process

12 Apr “XW”

Warrant issued amount 193,332,870 units (19.14% of total shares) Allocation ratio

5 existing shares : 1 warrant unit

Exercise ratio 1 : 1 Exercise price

THB 12.50

Tenor 3 years from warrant issued date

Exercise date

YE2017 YE2018 YE2019 YE2020 30 Apr 30 Apr 30 Apr 31 Oct 31 Oct 31 Oct

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