Meeting Agenda November 1, 2012
Agenda 1 China Media and Entertainment Industry Trends 2 2 SMG s Potential Evolution 7 3 Key Projects 10 4 Open Discussion 11 1
1 China Media and Entertainment Industry Trends 1 China Media and Entertainment Market Key Growth Drivers 2 China Filmed Entertainment Market Overview 3 Television and Film Market 4 Landscape of China Media and Entertainment Players 2
China Media and Entertainment Market Key Growth Drivers China Media and Entertainment Market Overview Growth Drivers ( 人民币亿元 ) 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 2,109 36 46 282 476 992 217 27 33 2,461 48 39 70 307 592 1,069 305 30 3,307 57 316 57 674 1,170 888 36 109 3,716 63 344 67 211 738 1,209 1,053 +17% 31 4,221 84 68 389 364 856 1,309 1,131 18 4,908 107 426 477 894 1,371 1,544 17 72 5,808 157 471 649 1,046 1,520 1,853 16 96 6,379 178 530 926 1,196 1,665 1,744 16 123 Policy - China s global influence - Administration reform - Tax and Financial support Consumer upgrade - Average disposal income - Emergence of middle class Technology - Media business is sensitive to new technology - New software and hardware channels such as Micro blog and ipad 1,000 500 0 2004 2005 Record Radio 2006 Film Others 2007 2008 Internet* TV 2009 Mobile*** 2010 Publishing** 2011 - New business model along with new technology Notes:*Internet revenue includes Advertisement and Games **Publishing revenue includes newspaper, magazine and book s distribution and advertisement ***Mobile revenue includes extra service from telecom operator 3
China Filmed Entertainment Market Overview With almost half of the world population, Asia-Pacific region account only 50% of U.S. total filmed entertainment spent. Filmed entertainment spend in China and India currently indicates room for significant growth and expansion Source: (1) Wall Street research 4
Television and Film Market Television market Film market 248 1,046 592 674 269 738 295 12.0% 836 334 894 357 429 91 28 19 108 27 20 +28% 150 34 14 102 196 46 20 130 57 26 165 237 44 61 355 404 443 502 536 617 2008 2009 Oversea 2010 Non-Theatrical 2011 Box-office 2012E 2005 2006 2007 2008 2009 2010 Cable (100M RMB) Advertisement (100M RMB)
Landscape of China Media and Entertainment Players 2011 Annual Revenue (RMB Billions) 20 15 10 5 Independent Content Maker & Distributor Upstream Copyrights, Box-office, Wanda 1.7B HY Bros. 0.9B BONA 0.8B China s Future Leader of Entertainment with Strong Capacity in both Content and Media Consolidation 25% 50% 75% Revenue Composition (% from downstream business) Established Media Giant > 15B Internet Challenger Consolidation Downstream Advertisement, Subscription, > 20B > 10B Youku Tudou 1.4B Iqiyi (Baidu). Sohu Video. 6
2 SMG s Potential Evolution 1 SMG s Current Business Portfolio (Highlights) 2 SMG s Vision in 5 Years 7
SMG s Current Business Portfolio (Highlights) 1 细致高效 反复沟通 Dragon TV, China s, leading 多次调研 访谈了台和集团所有相关子公司和职能部门 satellite TV channel for news and entertainment 2 数易其稿 力求完善 SMG Pictures, China s, 整合方案获得市委宣传部批准 leading filmed entertainment company 3 对标上市 解决难题 UALE, China s No.1, Musical 提出广告 影视剧等跨机构 跨平台业务关系解决方案 Company 4 厘清边界 规范推进 ERA, China s bestselling, 梳理股权 资产 版权范围 acrobatic multimedia, show 积极推进无偿划转工作 5 结合实际 着眼长远, 制定人力资源 组织架构 薪酬等方案, 目前五岸 尚 Toonmax, Box-office champion (No.1-4) for China domestic animation movie 世影业组织架构方案着手落地实施 6 完善布局 进军剧场 OCJ Shopping, China s, 娱乐产业布局持续推进 No.1 TV Shopping, company 已经组建完成亚洲联创公司 47 厘清边界 规范推进 BesTV, the world largest, 梳理股权 资产 版权范围 IPTV operator with 16, millions 积极推进无偿划转工作 subscriptions 58 结合实际 着眼长远, 制定人力资源 组织架构 薪酬等方案, 目前五岸 尚 CBN, China s leading multi-platform financial media and service company 世影业组织架构方案着手落地实施 69 完善布局 进军剧场 Dominant market share, 娱乐产业布局持续推进 in Shanghai s local, TV 已经组建完成亚洲联创公司 and radio audience 8
SMG s Vision in 5 Years We believe that by partnering with the right Hollywood studio SMG could gain access to the skills and assets that are necessary to develop critical mass and compete in both China and global market 9
3 Key Project The Legend of Cadarneth 10
谢谢 Thank You November 1, 2012