Transcript BEC World Public Company Limited

2
BEC World Plc.
Presentation for Investors
November 2006

Industry Overview
Financial Highlights
3
TV Advertising Trend:
Bt m
60,000
50,000
40,000
30,000
20,000
10,000
19
92
'9
3
'9
4
'9
5
'9
6
'9
7
'9
8
'9
9
20
00
'0
1
'0
2
'0
3
'0
4
'0
5
0
YoY
'93
'94
'95
'96
'97
'98
'99
2000
'01
'02
'03
'04
'05
Growth
34%
25%
14%
19%
10%
-15%
11%
18%
8%
14%
13%
12%
6%
High Growth Rate – Recovers Fast
Source: AGB Nielsen Media Research
4
Advertising Expenditure Trends:
ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM
YTD JANUARY- SEPTEMBER 06 VS 05
BAHT MILLIONS
MEDIA
YTD 06
SOV%
YTD 05
SOV%
DIFF
% Change
40,026
60.23
37,099
58.94
2,927
7.89
4,887
7.35
4,618
7.34
269
5.83
11,418
17.18
11,766
18.69
-(348)
-(2.96)
MAGAZINES
4,477
6.74
4,457
7.08
20
0.45
CINEMA
1,216
1.83
987
1.57
229
23.20
OUTDOOR
3,505
5.27
3,393
5.39
112
3.30
TRANSIT
721
1.08
536
0.85
185
34.51
IN STORE
207
0.31
89
0.14
118
132.58
TOTAL
66,458
100.0
62,945
100.0
3,513
5.58
TV
RADIO
NEWSPAPERS
Source: AGB Nielsen Media Research
5
Market Shares 2006:
First 9 Months:
Share of adspend
%
Share of viewers
45
40
35
30
25
20
15
10
5
0
Ch.3
Ch.5
Ch.7
Ch.9
Ch.11
iTV
Source: Nielsen Media Research
6
TV ADEX-2003-2005
iTV
Industr
y
1,171
9,244
50,011
6,443
970
7,351
47,170
12,030
4,554
996
5,928
42,288
4.7%
2.0%
8.0%
20.7%
25.8%
6.0%
-0.7%
14.2%
41.5%
-2.6%
24.0%
11.5%
TV Adex
Ch.3
Ch.5
Ch.7
Ch.9 Ch.11
2005
10,392
8,238
14,010
6,956
2004
10,806
7,866
13,734
2003
10,857
7,923
'05 YoY
-3.8%
'04 YoY
-0.5%
Source: AGB Nielsen Media Research
7
Top 20 Advertisers on Television YTD Sep’06:
TV
ADVERTISER (000 BAHT)
Grand
Total
3
5
7
9
ITV
11
%
%
%
%
%
%
UNILEVER (THAI) HOLDINGS
3,715,910
19.4%
10.0%
32.9%
10.5%
27.2%
PROCTER & GAMBLE (THAILAND)
1,100,606
43.6%
7.7%
42.2%
3.2%
3.3%
BEIERSDORF (THAILAND) CO.,LTD.
729,363
37.1%
5.1%
33.8%
3.8%
20.0%
0.1%
NESTLE(THAI) LTD.
638,181
28.5%
6.9%
41.6%
8.9%
14.1%
*
AJINOMOTO SALES CO.,(THAILAND)
579,069
22.7%
12.0%
30.1%
10.0%
24.5%
0.8%
COLGATE-PALMOLIVE(THAILAND)LTD
577,187
42.5%
1.2%
43.3%
2.5%
10.5%
ADVANCE INFO SERVICE PCL.
529,782
17.5%
6.6%
36.9%
5.3%
32.9%
0.8%
KAO COMMERCIAL (THAILAND) CO.,
522,297
26.6%
8.7%
39.6%
9.8%
15.3%
0.1%
TOYOTA MOTOR THAILAND CO.,LTD.
517,375
24.6%
9.4%
29.5%
18.6%
16.6%
1.2%
OSOTSPA (TECK HENG YOO)
496,834
28.4%
10.4%
28.8%
12.3%
15.4%
4.7%
PTT PUBLIC CO.,LTD.
492,938
19.4%
13.4%
17.1%
26.1%
13.9%
10.1%
JOHNSON&JOHNSON(THAILAND)LTD.
476,109
38.6%
12.2%
31.7%
11.4%
6.1%
L'OREAL (THAILAND) LTD.
475,105
26.2%
4.2%
34.8%
12.0%
22.9%
BOONRAWD BREWERY CO.,LTD.
426,194
21.5%
20.0%
26.1%
11.2%
16.2%
4.9%
TOTAL ACCESS COMMUNICATIONS
368,526
24.4%
12.8%
36.6%
14.4%
10.9%
0.8%
LION (THAILAND) CO.,LTD.
357,080
22.0%
14.5%
19.8%
12.8%
30.8%
BEER THAI (1991) CO.,LTD.
349,965
15.4%
25.7%
14.0%
13.6%
23.2%
TRI PETCH ISUZU SALES CO.,LTD.
349,055
26.0%
17.6%
15.3%
20.1%
21.0%
CEREBOS(THAILAND)LTD.
258,018
35.5%
6.4%
29.6%
15.7%
11.1%
1.7%
A.P.HONDA CO.,LTD.
247,839
19.0%
13.8%
22.5%
14.8%
22.7%
7.3%
CD, Governmental and Infomercial spending are excluded.
8.1%
Source: AGB Nielsen Media Research
8
Top 20 Advertisers on Television YTD Sep’06:
TV
YTD’06
YTD’05
%CHG
ADVERTISER (000 BAHT)
3
5
7
9
ITV
11
%CHG
%CHG
%CHG
%CHG
%CHG
%CHG
UNILEVER (THAI) HOLDINGS
3,715,910
2,686,480
38.3%
136.5%
6.5%
21.4%
52.5%
31.2%
PROCTER & GAMBLE (THAILAND)
1,100,606
1,203,909
-8.6%
1.3%
23.4%
-15.1%
51.2%
-60.0%
BEIERSDORF (THAILAND)
729,363
566,906
28.7%
156.4%
-10.8%
5.7%
300.2%
-18.3%
NESTLE(THAI) LTD.
638,181
596,998
6.9%
83.0%
53.3%
-8.6%
24.9%
-32.5%
532.7%
AJINOMOTO SALES (THAILAND)
579,069
677,180
-14.5%
8.9%
-48.8%
-30.6%
46.3%
13.4%
-15.8%
COLGATE-PALMOLIVE(THAI)
577,187
351,348
64.3%
123.8%
-57.9%
70.9%
-29.5%
3.9%
ADVANCE INFO SERVICE PCL.
529,782
792,214
-33.1%
-20.3%
-55.1%
-15.1%
-42.6%
-45.0%
105.6%
KAO COMMERCIAL (THAILAND)
522,297
490,403
6.5%
22.5%
-23.1%
2.7%
140.3%
-16.0%
-7.4%
TOYOTA MOTOR THAILAND
517,375
276870
86.9%
84.6%
-25.8%
114.6%
142.6%
184.0%
383.4%
OSOTSPA (TECK HENG YOO)
496,834
607187
-18.2%
-11.1%
-9.5%
-30.1%
-24.7%
2.1%
-23.6%
PTT PUBLIC CO.,LTD.
492,938
235,987
108.9%
110.5%
70.7%
84.4%
155.3%
57.5%
307.4%
JOHNSON&JOHNSON(THAILAND)
476,109
361,135
31.8%
88.1%
7.4%
17.8%
62.6%
-39.3%
L'OREAL (THAILAND) LTD.
475,105
356,953
33.1%
77.9%
2.4%
19.6%
79.2%
11.4%
BOONRAWD BREWERY CO.,LTD.
426,194
348,796
22.2%
-8.7%
21.0%
73.6%
37.5%
29.6%
TOTAL ACCESS COMM.
368,526
314,299
17.3%
46.7%
-39.7%
43.2%
6.8%
31.4%
LION (THAILAND) CO.,LTD.
357,080
356,373
0.2%
-0.3%
7.9%
-34.8%
20.8%
32.6%
BEER THAI (1991) CO.,LTD.
349,965
235,437
48.6%
109.0%
35.3%
32.3%
83.1%
18.1%
147.7%
TRI PETCH ISUZU SALES CO.,LTD.
349,055
251,637
38.7%
34.4%
22.3%
174.4%
22.5%
30.6%
-100.0%
CEREBOS(THAILAND)LTD.
258,018
201,964
27.8%
64.0%
-23.5%
14.6%
85.9%
-19.9%
911.5%
A.P.HONDA CO.,LTD.
247,839
96143
157.8%
138.2%
139.5%
124.7%
252.1%
112.9%
3647.9%
CD, Governmental and Infomercial spending are excluded.
-17.8%
Source: AGB Nielsen Media Research
9
STATION SHARE OF AUDIENCE 2005 - 2006
WHOLE KINGDOM : ALL AGED 4+
06.00 - 24.00
13
13
12
14
13
12
12
13
12
12
12
12
12
ITV
CH11
CH9
CH7
CH5
CH3
TOTAL TVR
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT
2005 2005 2005 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006
ITV
10.7
11.1
10.0
11.3
11.5
11.7
10.9
11.7
11.8
12.0
13.8
15.2
13.9
CH11
2.6
3.2
3.3
2.7
3.0
3.0
2.8
2.7
3.8
2.6
2.5
2.7
2.3
CH9
10.3
9.8
9.2
10.4
10.4
10.8
11.2
10.5
11.7
10.5
11.0
9.5
8.6
CH7
40.5
36.1
43.4
40.6
40.2
43.0
43.8
43.0
38.7
41.2
39.8
42.9
43.4
CH5
8.0
7.6
7.4
7.0
6.6
6.8
7.3
7.7
8.1
7.1
7.5
7.4
6.9
CH3
28.0
32.2
26.5
28.0
28.1
24.7
23.9
24.5
25.9
26.6
25.4
22.2
24.8
13
12
13
12
12
13
12
12
12
12
12
13
14
TOTAL TVR
POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000
Source: AGB Nielsen Media Research
10
STATION SHARE OF AUDIENCE 2005 - 2006
WHOLE KINGDOM : ALL AGED 4+
18.00 - 22.30
25
27
24
26
23
24
24
22
22
23
23
27
24
ITV
CH11
CH9
CH7
CH5
CH3
TOTAL TVR
OCT NOV DEC JAN FEB MAR APR MAY JUN
2005 2005 2005 2006 2006 2006 2006 2006 2006
JUL AUG SEPT OCT
2006 2006 2006 2006
ITV
10.7
10.3
9.1
11.0
11.4
12.0
11.8
12.4
12.0
12.2
15.3
16.7
15.2
CH11
2.1
2.5
2.1
1.8
1.9
2.2
2.3
1.9
3.0
1.7
1.6
1.7
1.6
CH9
10.1
9.6
8.2
9.9
10.1
10.9
11.7
10.9
11.6
10.0
10.7
9.3
8.3
CH7
42.3
36.5
49.5
44.4
43.6
48.0
46.8
46.5
41.9
44.2
41.6
45.5
44.5
CH5
6.8
5.9
5.7
5.4
5.1
5.1
6.0
6.3
7.0
6.1
7.0
6.2
6.0
CH3
28.0
35.2
25.3
27.6
27.8
21.7
21.5
22.0
24.6
25.8
23.7
20.6
24.3
25
24
27
23
24
24
22
22
23
23
24
26
27
TOTAL TVR
POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000
Source: AGB Nielsen Media Research
11
AUDIENCE SIZE
BY CHANNEL - WEEKDAY
Thousands
20000
15000
10000
5000
0
23:00
22:00
21:00
CH11
20:00
19:00
18:00
CH9
17:00
16:00
CH7
15:00
14:00
CH5
13:00
12:00
11:00
10:00
9:00
8:00
7:00
6:00
CH3
CHITV
Source: AGB Nielsen Media Research
12
TV VIEWING PATTERN
BY AGE GROUP - WEEKDAY
A 4-9
A 10-14
A 15-24
A 25-39
A 40-49
A 50+
All 4+
40
35
30
25
20
15
10
5
0
23:00
22:00
21:00
20:00
19:00
18:00
17:00
16:00
15:00
14:00
13:00
12:00
11:00
10:00
9:00
8:00
7:00
6:00
Source: AGB Nielsen Media Research
13
AUDIENCE SIZE
BY CHANNEL - WEEKEND
Thousands
20000
15000
10000
5000
0
23:00
22:00
21:00
CH11
20:00
19:00
18:00
CH9
17:00
16:00
CH7
15:00
14:00
CH5
13:00
12:00
11:00
10:00
9:00
8:00
7:00
6:00
CH3
CHITV
Source: AGB Nielsen Media Research
14
TV VIEWING PATTERN
BY AGE GROUP- WEEKEND
A 4-9
A 10-14
A 15-24
A 25-39
A 40-49
A 50+
All 4+
40
35
30
25
20
15
10
5
0
23:00
22:00
21:00
20:00
19:00
18:00
17:00
16:00
15:00
14:00
13:00
12:00
11:00
10:00
9:00
8:00
7:00
6:00
Source: AGB Nielsen Media Research
15
Industry Reform:
 We shall see NBC and Broadcasting Bill shortly.
 The reform is about to begin.
 The reform is “blessing in disguised” for BEC as the
industry will be more transparent and orderly.
 Long awaited new investment opportunities in
domestic market will be opened for BEC.
16
3rd Quarter of 2006 Highlights:
1,800.0
1,500.0
1,200.0
900.0
3Q06
600.0
2Q06
300.0
3Q05
Co
nc
er
ts
Re
ve
nu
e
To
ta
lS
al
es
&
Sh
ow
s
er
v.
Co
py
r ig
ht
s/
S
Ad
ve
rti
sin
g
-
3Q06
+/- QoQ
+/- YoY
1,534
-4%
30%
84
-3%
7%
Concerts & Shows
164
278%
-18%
Total Sales Revenue
1,782
3%
22%
Advertising
Copyright & Services
17
BEC World
Third Quarter of 2006
BEC World
Operating Results
Total Sales Revenues
Third Quarter of 2006
฿ Million
%
+/- YoY
+/- QoQ
1,783
100%
319
22%
57
3%
Cost of Services
719
44%
-11
-1%
-10
-1%
Cost of Shows
179
109%
-30
-14%
131
228%
Cost of Sales & Services
898
50%
-41
-4%
122
16%
Selling & Admin. Expenses
319
18%
64
25%
7
2%
Total Operating Costs
1,217
68%
23
2%
129
12%
Operating Profit
566
32%
296
109%
-72
-11%
Share of Associates' Results
-10
-1%
-11
-719%
1
-12%
Other Income
33
2%
18
116%
8
32%
Profit Before Tax
589
33%
302
105%
-62
-10%
Corporate Income Tax
167
9%
81
94%
-27
-14%
Profit After Tax
422
24%
221
110%
-35
-8%
Profit of Minority's Interest
-5
0%
0
-4%
3
-34%
NET PROFIT
427
24%
221
107%
38
-8%
Operating Costs
18
BEC World
First 9Mth. 2006
BEC World
Operating Results
Advertising Income
Copyright & Services
Concerts & Shows
First 9Mth. 2006
฿ Million
%
+/- YoY
4,627
242
281
90%
5%
5%
1,065
45
-589
30%
23%
-68%
Total Sales Revenues
5,150
100%
521
11%
Operating Costs
Cost of Services
Cost of Shows
Cost of Sales & Services
Selling & Admin. Expenses
Total Operating Costs
Operating Profit
Share of Associates' Results
Other Income
Profit Before Tax
Corporate Income Tax
Profit After Tax
Profit of Minority's Interest
NET PROFIT
2,161
291
2,452
916
3,368
1,782
-14
90
1,858
530
1,328
0
1,328
44%
104%
48%
18%
65%
35%
0%
2%
36%
10%
26%
0%
26%
37
-510
-473
67
-406
927
-10
36
954
223
731
-9
740
2%
-64%
16%
8%
-11%
108%
228%
67%
105%
72%
122%
-100%
126%
19
High Operating Leverage:
3.00
As our operating costs
and expenses are mostly
fixed in nature, thus BEC
World has high operating
leverage.
Our profitability will
improve greater than the
growth rate of our revenue
growth.
2.80
2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
Revenue
Profit
Revenue and Profit Growth
(1Q99 is BASE)