Transcript BEC World Public Company Limited

OPPORTUNITY DAY @ SET
31 August 2007

Industry Overview
Financial Highlights
2
TV Advertising Trend:
Bt m
60,000
50,000
40,000
30,000
20,000
10,000
'0
6
'0
4
'0
5
'0
2
'0
3
'9
7
'9
8
'9
9
20
00
'0
1
'9
4
'9
5
'9
6
19
92
'9
3
0
YoY
'93
'94
'95
'96
'97
'98
'99
2000
'01
'02
'03
'04
'05
'06
Growth
34%
25%
14%
19%
10%
-15%
11%
18%
8%
14%
13%
12%
6%
7%
High Growth Rate – Recovers Fast
Source: AGB Nielsen Media Research
3
TV ADEX-2003-2006
TV Adex
Ch.3
Ch.5
Ch.7
Ch.9 Ch.11
iTV Industry
2006
11,392
8,549
14,627
7,684
1,505
9,239
53,475
2005
10,392
8,238
14,010
6,956
1,171
9,244
50,011
2004
10,806
7,866
13,734
6,443
970
7,351
47,170
2003
10,857
7,923
12,030
4,554
996
5,928
42,288
’06 YoY
14.2%
3.8%
4.4%
10.5%
28.5%
17.3%
6.9%
'05 YoY
-3.8%
4.7%
2.0%
8.0%
20.7%
25.8%
6.0%
'04 YoY
-0.5%
-0.7%
14.2%
41.5%
-2.6%
24.0%
11.5%
Source: AGB Nielsen Media Research
4
Advertising Expenditure Trends:
ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM
2Q (APRIL - JUNE) 07 VS 06
BAHT MILLIONS
MEDIA
2Q 07
TV
12,694
RADIO
1,662
NEWSPAPERS 3,761
MAGAZINES
1,393
CINEMA
1,161
OUTDOOR
1,115
TRANSIT
244
IN STORE
144
TOTAL
22,174
SOV%
57.25
7.50
16.96
6.28
5.24
5.03
1.10
0.65
100.00
2Q 06
13,936
1,730
3,760
1,550
419
1,173
252
84
SOV%
DIFF % Change
60.85 (1,242)
- 8.91
7.55
(68)
- 3.93
16.42
1
0.03
6.77
(157)
-10.13
1.83
742
177.09
5.12
(58)
- 4.94
1.10
(8)
- 3.17
0.37
60
71.43
22,904
100.00
(730)
- 3.19
Source: AGB Nielsen Media Research
5
Advertising Spends on TV
2Q’07 vs 2Q’06
Baht:Millions
-8.2%
3,600
+6.3%
2Q'07
2Q'06
3,100
2,600
+0.9%
2,100
-19.3%
-26.5%
1,600
1,100
-27.2%
600
100
CHANNEL 3
CHANNEL 5
CHANNEL 7
CHANNEL 9
TITV
CHANNEL 11
-400
Source: AGB Nielsen Media Research
6
Advertising Expenditure Trends:
ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM
1H 07 VS 06
BAHT MILLIONS
MEDIA
1H 07
TV
25,452
RADIO
3,046
NEWSPAPERS 7,354
MAGAZINES
2,855
CINEMA
1,978
OUTDOOR
2,236
TRANSIT
417
IN STORE
266
TOTAL
43,604
SOV%
56.76
7.61
17.10
6.54
5.36
4.97
1.01
0.65
100.00
1H 06
26,299
3,217
7,756
2,960
679
2,315
468
118
SOV%
60.17
7.81
16.36
6.96
2.20
5.04
1.12
0.35
43,812
100.00
DIFF % Change
(847)
(3.22)
(171)
(5.32)
(402)
(5.18)
(105)
(3.55)
1,299
191.31
(79)
(3.41)
(51)
(10.90)
148
125.42
(208)
(0.47)
Source: AGB Nielsen Media Research
7
Advertising Spends on TV
1H’07 vs 1H’06
Baht : Millions
8,000
-2.9%
7,000
+8.4%
1H'07
1H'06
6,000
5,000
+2.5%
-12.0%
4,000
-16.5%
3,000
2,000
-12.7%
1,000
0
CHANNEL
3
CHANNEL
5
CHANNEL
7
CHANNEL
9
TITV
CHANNEL
11
Source: AGB Nielsen Media Research
8
Top 20 Advertisers on Television 1H07:
1H/07
1H/06
%CHG
ADVERTISER (000 BAHT)
UNILEVER (THAI)
3
5
7
9
ITV
%CHG
%CHG
%CHG
%CHG
%CHG
2,451,516
2,302,717
6.5%
18.8%
-6.7%
-0.6%
13.1%
8.4%
PROCTER & GAMBLE
698,114
717,175
-2.7%
-8.1%
-40.3%
19.8%
-46.0%
-53.5%
BEIERSDORF (THAILAND)
491,927
453,248
8.5%
22.2%
26.9%
0.1%
114.0%
-22.9%
COLGATE-PALMOLIVE
478,252
386,540
23.7%
40.7%
223.4%
-4.0%
218.3%
30.7%
L'OREAL (THAILAND)
449,513
260,483
72.6%
71.7%
578.4%
38.1%
78.9%
54.1%
NESTLE(THAI) LTD.
445,914
469,689
-5.1%
25.6%
-34.7%
3.5%
-38.6%
-55.9%
KAO COMMERCIAL
375,565
333,709
12.5%
19.5%
54.5%
16.7%
-19.9%
-15.6%
ADVANCE INFO SERVICE
352,588
364,440
-3.3%
39.2%
73.0%
1.6%
55.0%
-53.7%
JOHNSON&JOHNSON
343,660
272100
26.3%
19.6%
44.8%
23.7%
22.2%
56.0%
LION (THAILAND)
315,838
235607
34.1%
29.9%
128.8%
18.9%
10.4%
5.3%
OSOTSPA- TECK HENG YOO
315,011
366,180
-14.0%
-18.1%
23.0%
-27.1%
22.6%
-16.2%
AJINOMOTO SALES
280,667
287,053
-2.2%
9.6%
14.4%
2.5%
-15.4%
-17.8%
TOTAL ACCESS COMM.
271,940
271,563
0.1%
47.7%
-14.1%
3.7%
-29.9%
-51.1%
TRI PETCH ISUZU
270,971
219,248
23.6%
2.2%
22.2%
20.1%
49.2%
29.3%
TOYOTA MOTOR
269,030
385,692
-30.2%
-29.4%
88.3%
-46.1%
-36.2%
-53.6%
PTT PUBLIC CO.,LTD.
235,117
334,679
-29.7%
-39.5%
5.9%
-72.5%
-42.5%
-21.7%
SIAM CEMENT GROUP
194,198
157,731
23.1%
53.7%
134.6%
0.1%
-16.8%
37.2%
UNICHARM (THAILAND).
193,437
133,947
44.4%
70.8%
-4.5%
81.4%
63.3%
-4.8%
CEREBOS(THAILAND)
191,394
139,466
37.2%
86.0%
71.7%
48.3%
15.3%
-64.2%
SIAM COMMERCIAL BANK
187,683
24312
672.0%
708.0%
971.0%
1028.2%
718.2%
229.5%
Exclude Government and Music Spending:
Source: AGB Nielsen Media Research
9
Top 20 Advertisers on Television 1H07:
3
5
7
9
TITV
%
%
%
%
%
2,451,516
22.4%
8.2%
32.4%
11.3%
25.6%
PROCTER & GAMBLE
698,114
40.9%
5.2%
50.1%
1.5%
2.3%
BEIERSDORF (THAILAND)
491,927
40.1%
4.6%
32.8%
7.6%
14.9%
COLGATE-PALMOLIVE
478,252
48.2%
2.4%
35.4%
4.0%
10.1%
L'OREAL (THAILAND)
449,513
28.1%
12.5%
29.4%
11.4%
18.5%
NESTLE(THAI) LTD.
445,914
38.5%
4.7%
44.5%
5.3%
7.0%
KAO COMMERCIAL
375,565
29.8%
11.8%
40.4%
6.0%
11.8%
ADVANCE INFO SERVICE
352,588
24.3%
11.8%
39.4%
9.1%
15.4%
JOHNSON&JOHNSON
343,660
37.6%
13.4%
30.4%
11.2%
7.4%
LION (THAILAND) CO.,LTD.
315,838
20.3%
28.1%
17.3%
10.3%
24.1%
OSOTSPA (TECK HENG YOO)
315,011
28.3%
14.0%
24.7%
15.8%
15.1%
AJINOMOTO SALES
280,667
25.2%
12.9%
35.3%
7.5%
19.2%
TOTAL ACCESS COMM.
271,940
35.7%
11.8%
37.2%
10.0%
5.2%
TRI PETCH ISUZU SALES
270,971
23.0%
16.8%
14.8%
24.8%
20.4%
TOYOTA MOTOR THAILAND
269,030
25.7%
22.3%
23.9%
16.9%
10.6%
PTT PUBLIC CO.,LTD.
235,117
16.9%
21.6%
7.6%
19.5%
15.8%
SIAM CEMENT GROUP
194,198
28.7%
10.2%
32.2%
10.1%
18.7%
UNICHARM (THAILAND)
193,437
27.3%
10.3%
38.6%
8.7%
15.1%
CEREBOS(THAILAND)
191,394
43.8%
7.6%
32.0%
12.7%
3.9%
187,683
32.0%
16.4%
Exclude Government and Music Spending:
26.0%
13.4%
11.6%
Grand Total
ADVERTISER (000 BAHT)
UNILEVER (THAI)
SIAM COMMERCIAL BANK
Source: AGB Nielsen Media Research
10
Top Gainers 1H’07
Rank
No.
1
2
3
(Bahtx1,000)
PRODUCT SECTION
SKIN CARE PREPARATION
TOILETRIES
SUNDRIES
4 BANKS
5 FOODSTUFFS
6 VITAMIN & SUPP. FOOD
7 HOUSEHOLD CLEANER…
8 REAL ESTATE
9 ORAL PRODUCT
10 EDUCATIONAL INSTITU…
FIRST HALF 2007
Amt.
%
Changes 1H07-06
Amt.
%
2,553,057
1,448,190
233,514
370,046
10.0%
5.7%
0.9%
1.5%
445,568
168,457
156,320
110,281
21.1%
13.2%
202.5%
42.5%
1,062,335
449,591
934,905
4.2%
1.8%
3.7%
103,463
99,544
95,207
10.8%
28.4%
11.3%
268,321
641,393
195,618
1.1%
2.5%
0.8%
93,261
66,930
66,415
53.3%
11.7%
51.4%
Source: AGB Nielsen Media Research
11
Top Losers 1H’07
Rank
No.
45
46
47
48
49
50
51
52
53
54
(Bahtx1,000)
PRODUCT SECTION
PETROL
DAIRY PRODUCT
SNACK FOOD
NON ALCHOHOLIC BEVER..
CERDIT/DEBIT CARDS
GOVERNMENT & COMMU…
CD/VDO & MUSIC PRO…
COMMUNICATIONS
ALCOHOLIC BEVERAGES
LEISURE
FIRST HALF 2007
Amt.
211,315
832,832
393,774
%
0.8%
3.3%
1.5%
Changes 1H07-06
Amt.
%
-82,751 -28.1%
-92,370 -10.0%
-96,556 -19.7%
1,660,119
164,339
1,250,263
899,494
1,222,048
365,103
1,060,496
6.5%
0.6%
4.9%
3.5%
4.8%
1.4%
4.2%
-126,390
-143,808
-240,257
-242,215
-369,272
-483,956
-494,398
-7.1%
-46.7%
-16.1%
-21.2%
-23.2%
-57.0%
-31.8%
Source: AGB Nielsen Media Research
12
STATION SHARE OF AUDIENCE 2006 - 2007
WHOLE KINGDOM : ALL AGED 4+
06.00 - 24.00
14
13
12
12
13
12
12
12
12
13
13
12
12
TITV
CH11
CH9
CH7
CH5
JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
2006 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007
TITV
11.8
12
13.8
15.2
13.9
13.7
13.2
11.9
10.5
10.5
9.6
10.2
11.1
CH11
3.8
2.6
2.5
2.7
2.3
2.3
5.9
2.3
2.3
2.1
2.2
2.2
2.5
CH9
11.7
10.5
11
9.5
8.6
8.8
9.5
9.1
9.4
9
8.4
8.3
8.8
CH7
38.7
41.2
39.8
42.9
43.4
41.5
36.9
38.7
40.8
43.2
46.3
46.2
43
CH5
8.1
7.1
7.5
7.4
6.9
7.6
7.6
7.7
6.6
6.7
6.3
5.6
6.4
CH3
25.9
26.6
25.4
22.2
24.8
26.1
26.9
30.4
30.3
28.6
27.2
27.7
28.2
TVR
12
12
12
13
14
12
12
12
12
13
13
13
12
CH3
TVR
POTENTIAL 2005 : 2006 : 59,400,000 ; 2007 :60,107,000
Source: AGB Nielsen Media Research
13
STATION SHARE OF AUDIENCE 2006 - 2007
WHOLE KINGDOM : ALL AGED 4+
18.00 - 22.30
23
23
24
26
27
26
26
25
26
25
25
23
23
TITV
CH11
CH9
CH7
CH5
CH3
JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
2006 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007
TITV
12
12.2
15.3
16.7
15.2
13.8
12.5
10.2
8.3
8
7.4
7.5
9.2
CH11
3
1.7
1.6
1.7
1.6
1.7
4.6
1.7
2.1
1.6
1.7
1.6
1.7
CH9
11.6
10
10.7
9.3
8.3
8.1
9.3
8.7
9.2
9.2
9
8.5
8.8
CH7
41.9
44.2
41.6
45.5
44.5
44.6
38.1
40.3
43.1
44.7
47
49.1
46.9
CH5
7
6.1
7
6.2
6
7.3
7.9
8.2
6.2
6.7
6.5
4.9
6.4
CH3
24.6
25.8
23.7
20.6
24.3
24.5
27.5
30.9
31.2
29.7
28.5
28.4
27
TVR
23
23
24
26
27
26
25
26
26
25
23
25
23
TVR
POTENTIAL 2005 : 2006 : 59,400,000 ; 2007 :60,107,000
Source: AGB Nielsen Media Research
14
2nd Quarter of 2007 Highlights:
Baht:Millions
Advertising
2Q07 +/- QoQ
+/- YoY
1,711
6.2%
7.3%
Copyright & Services
54
11.8%
-38.0%
Concerts & Shows
32
-67.5%
-26.2%
1,797
1.5%
4.1%
588
8.7%
26.5%
Total Sales Revenue
Net Earnings
15
BEC World
2Q07 Operating Results
BEC World
Operating Results
Total Sales Revenues
Second Quarter of 2007
฿ Million
%
+/- YoY
+/- QoQ
1,797
100%
72
4%
26
2%
Cost of Services
687
39%
-41
-6%
33
5%
Cost of Shows
28
87%
-19
-41%
-51
-65%
Cost of Sales & Services
715
40%
-60
-8%
-18
-2%
Selling & Admin. Expenses
313
17%
1
-
23
8%
Total Operating Costs
1,028
57%
-59
-6%
5
1%
Operating Profit
769
43%
131
21%
21
3%
Share of Associates' Results
-10
-1%
1
-7%
6
-36%
Other Income
67
4%
42
172%
31
87%
Profit Before Tax
826
46%
174
27%
57
8%
Corporate Income Tax
229
13%
36
18%
12
5%
Profit After Tax
596
33%
138
30%
46
8%
Profit of Minority's Interest
8
-
-213%
-1
-14%
27%
47
9%
Operating Costs
NET PROFIT
588
33%
15
123
16
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)