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

Jun 08, 2023 •330 likes •563 views

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

  1. 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

  2. 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 of 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. 2

  3. 2016 Highlight • Amid slow economic growth, weak private consumption and the suspension of 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 4 th 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. 3

  4. 2016 Financial results - as stated in FS (THB m) Y15 Y16 %YoY -16% Revenue 3,728.7 3,124.9 - Revenue from sales +5% 795.5 838.3 - Revenue from services -22% 2,933.2 2,286.6 COGS -14% 2,703.0 2,331.0 - Cost of sales +5% 379.6 399.8 - Cost of services -17% 2,323.4 1,931.2 +140% Other income 51.6 123.6 +10% SG&A 876.4 960.6 +3% Finance costs 81.1 83.4 -97% Tax -12.3 -24.2 -184% NPAT (Parented) 121.6 -102.1 4

  5. 2016 Financial results - by BU (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% 5 * Artist Management earned THB89mn in 2015 and THB87mn in 2016.

  6. Media

  7. Media Industry Update - ADEX Source: AGB Nielsen, DAAT 7

  8. Media - Television (THB m) • Growth of CH8 from higher sport 2,253 and news programs’ rating and utilization (from 45% to 70%) • Lower satellite TV revenue from drop of overall industry while 1,548 well-managed cost 1,378 1,348 • 2017F target rating to 550K (0.8%) viewers by end of 2017 • 937 35% increase in ad rate • Secure 50% of sales target Avg. Jan’ 17 Avg. Jan’ 17 Latest 600K / 0.9% 1,900K / 2.9% 1,015K / 1.5% 2013 2014 2015 2016 2017F 8

  9. Media - Radio (THB m) • “COOL Fahrenheit 93 ” remains No.1 ranking for Easy Listening 520 522 512 category and No.2 nationwide, surveyed by AGB Nielsen • 404 401 Well-established brand, strong revenue generated to the Company 2013 2014 2015 2016 2017F 9

  10. Health & Beauty

  11. Health & Beauty • Re- focusing on “Telesales” and (THB m) 437 maximize its own channel’s airtime Hair Care • Expanding call center seats [REVIVE] End 2016 Mid-16 Mid-17 45 100 230 Supplement • Creating umbrella brands [S.O.M] 228 232 • Increase in no. of SKUs • Reaching out to mass market Skin Care 3-month [MAGIQUE] 67 65 H&B total sales (THB m) 23 1 2013 2014 2015 2016 2017F Dec'16 Jan'17 Feb'17 11

  12. Health & Beauty - Value Chain R&D Laboratory Marketing Media Distribution Delivery Manufacturer Kerry OEM Express Remaining capacity Remaining capacity Remaining capacity 12

  13. Health & Beauty - Marketing Plan End 2016 End 2016 1Q17 1Q17 2Q-4Q17 2Q-4Q17 Distribution Distribution Channel Channel 390 branches 390 branches 18 stores 18 stores 180 stores 180 stores 50 branches 50 branches 129 stores 129 stores 4 Stores 4 Stores 90 stores per quarter 30 stores 30 stores 1,500 stores 1,500 stores 250 stores 250 stores 400 stores 400 stores 91 stores 91 stores 80 branches 80 branches 35 stores 35 stores 160 stores 160 stores 55 stores 55 stores 495 stores 495 stores 1,000 stores 1,000 stores 8 branches 8 branches 200 stores 200 stores Media Plan Media Plan Pop up Pop up FB Post FB Post Leaflet Leaflet Blogger/User review Blogger/User review Standee Standee Online VDO Online VDO Shelf display Shelf display Advertorial Advertorial Digital screen Digital screen Month 7-9 Month 1-3 Month 4-6 Awareness Interest Consider 13

  14. Music

  15. Music (THB m) 899 New Model “Music Marketing and Services” 566 464 • RS ceased physical record 322 production activities, aligning 314 with the changing behavior of music consumers • Focusing on YouTube and music streaming 2013 2014 2015 2016 2017F 15

  16. Event

  17. Event • There was large-scale project (THB m) in 2015-2016 amounting to 753 THB 441m and 606m 707 • In 2017, concentrating to In- house events that support 571 RS’s media channels 350 112 2013 2014 2015 2016 2017F 17

  18. 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 18

  19. Others

  20. Balance Sheet Asset Liabilities & Equity (THB m) 4,844 4,844 4,139 Cash 762 4,139 A/P 1,419 Cash 104 1,899 Current Current asset 1,939 A/P 589 950 A/R+ Accrued liabilities A/R+ Accrued Income 567 Income 791 1,768 Payable for Digital TV Digital TV 1,468 เงินกู้ยืม +1,150 Non-current Payable for license 1,218 Digital TV Digital TV liabilities license 1,666 1,106 Non-current asset 2,905 3,189 1,311 1,802 Intangible A/S 552 1,727 Intangible A/S 324 1,060 Equity 31 Dec 15 31 Dec 16 31 Dec 15 31 Dec 16 20

  21. Remedial Measures by NBTC Amount ( Excl. VAT) Payment No. of 1 Period Installment Old New 4 May’17 415.0 207.5 5 May’18 377.0 207.5 Net saving cost by 6 May’19 377.0 THB 46m (saving 188.5 interest expense + 7 May’20 - 188.5 interest charge 1.5% 8 May’21 - 188.5 + LG fee) 9 May’22 - 188.5 1,169 Total 1,169 Must Carry - Reduce cost by THB 2.5m per month for 3 years since 20 Dec 2016 2 NBTC fee (first payment of 2% ) and USO fund fee (second payment of 2% ) 3 • YE 2016 - Reverse NBTC fee (after tax) by THB 8m USO fund fee (after tax) by THB 89 m • YE 2017 - Decrease in payment by appx THB 20 m 21

  22. Warrant Issuance (RS-W3) Process BOD Record date 1 st exercise date “XW” Meeting / Book closing 22 Feb 31 Oct 5 Apr 12 Apr 18 ,19 Apr [ 2 May] Warrant AGM issued date Warrant issued amount 193,332,870 units (19.14 % of total shares ) Exercise date 5 existing shares : 1 warrant unit Allocation ratio YE 2017 YE 2018 YE 2019 YE 2020 Exercise ratio 1 : 1 30 Apr 30 Apr 30 Apr Exercise price THB 12.50 31 Oct 31 Oct 31 Oct 22 Tenor 3 years from warrant issued date

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