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RS PCL 3Q18 Results Briefing 30 November 2018 Harp Meeting Room, RS - PowerPoint PPT Presentation

Sep 03, 2022 •358 likes •571 views

RS PCL 3Q18 Results Briefing 30 November 2018 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

  1. RS PCL 3Q18 Results Briefing 30 November 2018 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 2019 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. Topic • 3Q18 Financial Results • Expected Plan and Performance for 4Q18 • What’s Next in 2019 • Q&A

  4. Quarterly Financial Results

  5. Quarterly Financial Results 3Q17-3Q18 Revenue and GPM (THB mn, %) -15%YoY -12%QoQ 44% 42% 41% 41% GPM 40% 989 969 955 914 Event 837 Music 62 66 54 Event 61 Music 52 307 364 463 Media 371 300 Media Multi-platform Multi-platform 580 504 466 459 Commerce 423 Commerce (MPC) (MPC) 3Q17 4Q17 1Q18 2Q18 3Q18 Net Profit and NPM (THB mn, %) -14%YoY -38%QoQ 18% 12% 12% 12% NPM 172 10% 124 110 107 102 3Q17 4Q17 1Q18 2Q18 3Q18 5

  6. Deferred Tax Asset in 3Q18 3Q18 Financial Statement Amount (THB mn) EBT 108.8 20% Income tax 21.8 Adjusted items: - Allowance for impairment of investments in subsidiaries* -20.4 - Other regular items +0.8 Income tax reported on F/S 2.2 * Booked as deferred tax assets, with the expectation that such assets could be used for future tax benefits 6

  7. Multi-platform Commerce (MPC)

  8. MPC - 3Q18 Revenue and GPM • A temporary effect by news of a crackdown on illegal H&B (Revenue, THB mn) YoY : +9% products by the Thai FDA QoQ : -9% • A clear sign of the market recovery by Aug-Sep and it have already showed great performance in Oct • Continue to add new SKUs as planned and new product category e.g. accessories 580 • Effectively manage database; reached 1mn customers 29 504 459 • Boost Telesales teams (Outbound team) to ensure higher 466 repeated sales and increase product orders 423 124 H&L 110 3Q18 Revenue Contribution Retails LS Biz 301 1% Online 1% 8% 551 199 423 466 LifeStar’s 380 349 H&B Outbound SatTV 301 Inbound 11% 31% 59% 199 89% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 8

  9. MPC - Customer Profile Compare to CH8 ’s Audience Demographic Age Gender Total Customer Y4+, 6% (@Oct’ 18) 1M Other big Y30+, 14% cities, 61% Y50+, 56% 34% Price Size (THB/ticket) Bangkok 66% 2,000-3,000 Small cities, & Vicinity, 10% 29% Y40+, 24% Repeat Purchase (within 6mo.) 24% Y50+, 36% Rating (15+,18hr) Urban, 25% Y4+, 27% TVR: 0.70% Viewership: 400K 51% 49% Bangkok Reach Rural, 60% Y30+, 13% & Vicinity, Reach: 10M 15% Y40+, 24% 9 Source: MPC’s database during 2Q18 and CH8 ’s audience base during Sep’ 18

  10. MPC - Platforms MPC has 4 main distribution channels; media (RS’s digital TV, satellite TVs and radio station), online (RS’s e -commerce websites and LINE application), retail outlets (Watsons, Tops market and other drugstores nationwide) and direct sales channel under the brand “ Lifestar BIZ” (nationwide membership network). Media (90%)* Retails (1%)* Direct sales (1%)* Online (8%)* 1,000 400,000 followers members www.shop1781.com * Percentage of estimated 2018 revenue contribution from each platform 10

  11. MPC - Products MPC has 4 product categories; health & beauty products, home & lifestyle products, accessories and & others. Accessories (3%)* Health & Beauty (80%)* Home & Lifestyle (15%)* Kitchenware & Tableware Skincare Clothes & Wear Food Supplement Home & Living Others (2%)* Hair Care Lifestyle & Gadget * Percentage of estimated 2018 revenue contribution from each product categories 11

  12. Dec’ MPC - No. of SKU of Each Category No. of SKU Type of Products Products’ Ownership End 2017 End 2018(E) End 2019(E) Skincare 9 17 Food Supplement Dec’ 6 9 Health & Beauty Products (H&B) Hair Care 4 5 Double no. of SKU Dec’ / 10 18 Add more hero Home & Lifestyle products by 3x - 41 Products (H&L) Dec’ Partner’s Products (ตามไฟล์เอย) เอยแจ้ง - 5 แต่พยายามใส่ไปให้ได้ประมาณ 100 (12+ Accessories ) พระพิฆเนศ - 1 Others Total No. of SKU 29 ~100 12

  13. Media

  14. CH8 Ratings and Highlights Rating by Program (%) Highest Rating 2.466 Series Finale Rating 2.255  TV program reshuffled in Jul Two boxing programs removed  14

  15. TV - 3Q18 Revenue and GPM • Overall ad spending declined each month in (Revenue after rebate, THB mn) 3Q18 (exc. budget allocated to a sports YoY : -37% broadcasting event) QoQ : -19% 365 • CH8 average ad rate is fixed for long-term 355 341 contract sales but the utilization rate decreased in line with overall situation of the media industry 283 278 • Each satellite TV channel has been positioned as a shelf for MPC and it has been successful 238 229 with no cost-burdens 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 15

  16. Radio - 3Q18 Revenue and GPM (Revenue, THB mn) YoY : -21% • “ COOLfahrenheit ” remains No. 1 ranking for Easy QoQ : -11% Listening category, surveyed by AGB Nielsen 91 88 • A cash cow business for the Company, 84 generating high margin but slow-growing 80 77 71 66 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 16

  17. Music & Event

  18. Music & Event - 3Q18 Revenue and GPM (Revenue from Music business, THB mn) YoY : -17% “Music Marketing and Services” QoQ : -4% 67 66 64 62 61 52 • 54 Main revenues are generated from YouTube and other online music streaming services such as Joox and Spotify • Limit the number of artists, only the main ones with earning potential to control costs more effectively 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 (Revenue from Event business, THB mn) YoY : -36% QoQ : -22% 57 41 41 33 26 16 16 • Event business concentrates to in-house events that support RS’s media channels which mainly are Channel 8 and Sabaidee TV 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 18

  19. Expected Plan and Performance for 4Q18

  20. Expected 4Q18 Plan and Performance Multi-platform Commerce (MPC) Media - CH8   Launch exclusive product for direct sales channel, Maintain production cost at official launch by mid of Dec THB 580mn for 2018   Sourcing high margin products New Thai drama series and international series are  Stay tuned for a big promotion “ Shop1781 New planned to capture more Year Grand Sales ” to boost sales volume at the end audiences and CH8 aims to of this year reach 400K viewers or 0.7% rating (15+,18hrs) by end of  MPC is expected to make a record high sales in 2018 4Q18 20

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