Transcript BEC World Public Company Limited

2
BEC World Plc.
Presentation for Investors
CORPORATE ACCESS DAY
6 - 7 July 2006

Industry Overview
Financial Highlights
3
Advertising Trends:
95
98
99
00
01
04
TV
44%
60% 63%
60%
62%
56%
RADIO
12%
9% 10%
10%
10%
8%
NEWSPAPER
28%
19% 20%
21%
18%
21%
MAGAZINE
CINEMA
OUTDOOR
TRANSIT
8%
5%
5%
5%
6%
7%
-
1%
1%
1%
1%
2%
8%
5%
3%
2%
3%
5%
-
1%
-
1%
1%
1%
Source: CIA Media Innovation & NMR
4
Advertising Trends:
Source: Nielsen Media Research
5
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: Nielsen Media Research
6
TV Advertising Trend:
2005
2004
2003
Ch.3
15,000
Ch.5
10,000
Ch.7
Ch.9
5,000
Ch.11
iTV
TV Adex
Ch.3
Ch.5
8,238
Ch.7
2005
14,010
Ch.9
2004
6,956
Ch.11
2003
1,171
2005
10,392
2004
10,806
7,866
13,734
6,443
2003
10,857
7,923
12,030
’05 YoY
-3.8%
4.7%
’04 YoY
-0.5%
-0.7%
0
iTV
Industry
9,244
50,011
970
7,351
47,170
4,554
996
5,928
42,288
2.0%
8.0%
20.7%
25.8%
6.0%
14.2%
41.5%
-2.6%
24.0%
11.5%
7
Advertising Trend:
May YTD Spending:
Source: Nielsen Media Research
8
STATION SHARE OF AUDIENCE 2005 - 2006
WHOLE KINGDOM : ALL AGED 4+
06.00 - 24.00
13
12
12
11
12
13
12
13
12
12
12
12
11
CH 3
CH 5
CH 7
CH 9
CH 11
ITV
TOTAL TVR %
MAY
2005
JUN
2005
JUL
2005
AUG
2005
SEP
2005
OCT
2005
NOV
2005
DEC
2005
JAN
2006
FEB
2006
MAR
2006
APR
2006
MAY
2006
CH 3
22.3
22.8
23.1
23.9
24
28
32.2
26.5
28
28.1
24.7
23.9
24.5
CH 5
8.8
8.5
8.6
8.2
8
8
7.6
7.4
7
6.6
6.8
7.3
7.7
CH 7
45.2
43.7
43.2
43
43
40.5
36.1
43.4
40.6
40.2
43
43.8
43
CH 9
10
10.9
11.3
11.2
11
10.3
9.8
9.2
10.4
10.4
10.8
11.2
10.5
CH 11
2.2
2.9
2.8
2.7
3
2.6
3.2
3.3
2.7
3
3
2.8
2.7
ITV
11.4
11.2
11
11
11
10.7
11.1
10
11.3
11.5
11.7
10.9
11.7
12
11
11
12
12
13
12
13
12
12
13
12
12
TOTAL TVR %
Source: Nielsen Media Research
9
Advertising Spends on TV
YTD May’06 vs YTD May’05
Millions Baht
YTD-06
5,000
4,500
YTD-05
+3.7%
+18.3%
4,000
-3.9%
+5.3%
3,500
+6.5%
3,000
2,500
2,000
1,500
1,000
-1.9%
500
0
CHANNEL 3
CHANNEL 5
CHANNEL 7
CHANNEL 9
ITV
CHANNEL 11
Source: Nielsen Media Research
10
Top 20 Advertisers on Television YTD May’06
TV
ADVERTISER (000 BAHT)
UNILEVER (THAI) HOLDINGS
Y2006 *
Y2005
%CHG
CH3 (% CHG)
1,954,854
1,233,684
58.5%
216.9%
PROCTER & GAMBLE (THAILAND)
596,770
587,779
1.5%
14.8%
NESTLE(THAI) LTD.
382,489
336,301
13.7%
76.9%
BEIERSDORF (THAILAND) CO.,LTD.
358,047
386,768
-7.4%
93.8%
GMM GRAMMY PUBLIC CO.,LTD.
340,092
372,412
-8.7%
-54.8%
TOYOTA MOTOR THAILAND CO.,LTD.
325,692
156,133
108.6%
81.8%
COLGATE-PALMOLIVE(THAILAND)LTD
316,261
132,199
139.2%
194.1%
ADVANCE INFO SERVICE PCL.
302,488
564,766
-46.4%
-45.3%
OSOTSPA (TECK HENG YOO)
299,433
379,337
-21.1%
-5.0%
TV DIRECT CO.,LTD.
250,633
220,139
13.9%
-56.0%
PTT PUBLIC CO.,LTD.
248,927
110,895
124.5%
191.1%
JOHNSON&JOHNSON(THAILAND)LTD.
245,757
196,012
25.4%
76.9%
KAO COMMERCIAL (THAILAND) CO.,
243,651
249,761
-2.4%
29.0%
BOONRAWD BREWERY CO.,LTD.
241,128
190,085
26.9%
13.8%
TOTAL ACCESS COMMUNICATIONS
233,015
204,737
13.8%
35.6%
L'OREAL (THAILAND) LTD.
217,189
164,603
31.9%
88.8%
AJINOMOTO SALES CO.,(THAILAND)
202,285
366,237
-44.8%
-30.3%
LION (THAILAND) CO.,LTD.
197,685
203,832
-3.0%
-2.2%
TRI PETCH ISUZU SALES CO.,LTD.
181,384
159,163
14.0%
21.6%
OFFICE OF THE PRIME MINISTER
178,126
240,753
-26.0%
-54.7%
Source: Nielsen Media Research
11
Top 20 Advertisers in May 2006
TV
Grand Total
ADVERTISER (000 BAHT)
CHANNEL 3
CHANNEL 5
CHANNEL 7
CHANNEL 9
ITV
CHANNEL 11
UNILEVER (THAI) HOLDINGS
456,287
83,312
40,655
161,538
40,563
130,219
-
NESTLE(THAI) LTD.
115,343
32,809
8,434
47,373
12,398
14,329
-
BEIERSDORF (THAILAND) CO.,LTD.
91,254
42,097
3,769
31,444
3,404
10,540
-
PTT PUBLIC CO.,LTD.
80,240
17,656
7,953
14,245
22,256
9,307
8,823
KAO COMMERCIAL (THAILAND) CO.,
78,163
20,816
4,879
31,079
9,210
12,179
-
PROCTER & GAMBLE (THAILAND)
77,447
31,561
6,416
36,892
1,816
763
-
COLGATE-PALMOLIVE(THAILAND)LTD
72,951
34,468
710
30,724
1,670
5,379
-
BOONRAWD BREWERY CO.,LTD.
64,763
13,558
11,816
18,636
7,616
11,291
1,845
TOYOTA MOTOR THAILAND CO.,LTD.
57,384
10,929
7,041
17,379
12,019
8,585
1,431
GMM GRAMMY PUBLIC CO.,LTD.
55,946
1,832
36,257
11,661
3,915
2,281
-
TV DIRECT CO.,LTD.
53,578
11,206
20,493
529
4,570
16,779
-
OSOTSPA (TECK HENG YOO)
51,999
11,657
5,372
15,000
7,865
10,038
2,066
AJINOMOTO SALES CO.,(THAILAND)
45,518
11,659
3,974
15,612
3,214
10,729
329
L'OREAL (THAILAND) LTD.
45,310
10,985
246
18,126
4,808
11,145
-
TRI PETCH ISUZU SALES CO.,LTD.
43,551
11,079
7,497
7,101
9,290
8,584
-
ADVANCE INFO SERVICE PCL.
43,372
6,690
2,372
16,141
1,846
15,353
970
BEER THAI (1991) CO.,LTD.
43,341
8,400
8,742
9,035
9,436
7,634
94
SONY (THAILAND) CO.,LTD.
41,855
11,106
8,461
11,707
4,685
5,895
-
JOHNSON&JOHNSON(THAILAND)
41,422
16,036
5,624
12,646
5,192
1,925
-
LION (THAILAND) CO.,LTD.
40,596
7,923
5,794
6,359
6,721
13,799
-
Source: Nielsen Media Research
12
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.
13
First Quarter of 2006 Highlights:
Baht:Million
2006
+/- YoY
1,498
+35%
Concerts & Shows
73
-73%
Oth. Sales Revenue
69
-7%
1,641
+13%
436
+184%
Ad.Revenue
Total Sales Revenue
Net Profit
14
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)
15
BEC’s Dividend History:
BEC World intends to
Baht per share
1.50
grow its dividend as well
as to retain high payout
ratio.
1.40
With our ability to make
profit and the fact that we
normally generates more
cash than the reported
profit, thus these
objectives are still valid.
1.00
1.30
1.20
1.10
0.90
0.80
0.70
0.60
0.50
0.40
9
19
6
9
19
8
0
20
0
0
20
2
0
20
4