Stop parsing PDFs. Get the API. Request Access

AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Readcrest Capital AG

Investor Presentation • Apr 24, 2008

346_ip_2008-04-24_71603cef-0c42-4e79-b03e-bca3ff7d8863.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

Business Media China AG

Company PresentationApril 24, 2008

K.M. Hilligardt, CEOPeter Saßmann, CFO

This document contains forward-looking statements and forecasts based on assumptions and estimates made by Business Media China AG ("BMC") management. While we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that the expectations will prove to be correct. The assumptions may conceal risks and uncertainties which may lead to actual results significantly divergent from those made in the projective forecasts. The factors that can cause such a divergence include: changes in foreign exchange control or the economic and business environment, currency exchange rate fluctuations, the low market entry barriers for competitors, insufficient acceptance of new products or services and changes in corporate strategy. No update of the projected forecasts contained herein is planned, nor does BMC assume any obligation to do so.

BMC at a Glance

  • China – A growing advertising and exhibition market
  • Strategy and strategic strengths
  • BMC's operations
  • OOH Media
  • Exhibitions & Conferences
  • Peer group analysis
  • 2007: Key numbers
  • Outlook

BMC at a glance

  • BMC provides "Total China Media Competence" by combining Exhibitions & Conferences and Outdoor Advertising/Out of Home Media (OOH).
  • BMC's track record in Exhibitions and the high value portfolio of advertising media in railway stations and airports ensures a fast increasing revenue and earnings stream in a double-digit growing market.
  • BMC today is recognized as the leading company in OOH Media innovation and All-China media coverage.
  • Proven SINO-EUROPEAN Management-Style is the key success factor.
  • Turnover 2007: EUR 23.1 Mio., +220% vs. 2006, 260 employees (31.12.2007).
  • Shareholder structure: 42% Mesago (CEO), 2% Management, 56% free float.
  • Market Cap(10.4.2008): EUR 108 Mio.

* 18% of TC Gruppe are notified for registration

** BMC Tianjun is in the course of formation

Executive Board

BMC's footprint today

  • BMC at a Glance
  • China – A growing advertising and exhibition market
  • Strategy and strategic strengths
  • BMC's operations
  • OOH Media
  • Exhibitions & Conferences
  • Peer group analysis
  • 2007: Key figures
  • Outlook

China's dynamic economy

  • The Chinese economy is estimated to grow at over 10% per annum through the next decade.
  • Huge manufacturing sector, called 'Factory of the World'.
  • Rising income levels and increasing purchasing power of middle class.
  • By 2020 the middle class will comprise 40% of the total population.
  • China will consume approximately 29% of the world's total luxury goods in 2015.
  • Boom in the retail sector.
  • Government modernising rural & urban infrastructure, highways, railways, airports, roads, subways.
  • Olympics 2008 lead to higher awareness and attractiveness of the China market as strongly growing consumer market.

Source: Chinese statistical Yearbook 2006

Large and Fast Growing Advertising Market (CAGR 16.2%)

Outdoor Advertising (OOH) is growing faster then the advertising market (CAGR 18.0%)

Source: Deutsche Bank, National Bureau of Statistics of China, ZenithOptimedia.

Ad Spend: China vs. World

Ad spend growth of China vs. World

Ad spend % of GDP of China vs. World

  • China's urban population increased from 29.0% in 1995, to 40.5%, or 523 million people, in 2003.
  • Predicted to increase beyond 615 million by 2010.

OOH: the leading advertising media

  • Massive urbanisation drives China's ad expenditure
  • 70% of retail sales take place in urban areas with a growth rate of over 14%.
  • Over 50% of China's current advertising spend is targeted at the cities of Beijing, Shanghai, Guangzhou and Shenzhen, only accounting for around 9% of the population.

OOH advertising as percentage of total ad spend

Exhibition growth in China

China is the fastest growing exhibition market

Source: CCPIT

  • BMC at a Glance
  • China – A growing advertising and exhibition market
  • Strategy and strategic strengths
  • BMC's operations
  • OOH Media
  • Exhibitions & Conferences
  • Peer group analysis
  • Full year figures 2007

  • Outlook

  • Follow a buy & build strategy using national and global reach: BMC identifies market leaders in specific local or regional segment, acquires a controlling stake in it (buy), and then scales (build) it up using its national and global reach.

  • Develop, attract & establish additional international exhibitions & conferences in the Chinese market.
  • Identification of new opportunities (e.g online platforms) for a strong and profitable growth
  • Exploring synergiesbetween OOH media and exhibitions & conferences.

  • Driving the consolidationin the Chinese Outdoor Advertising market

  • The strong SINO-EUROPEANManagement is a key success factor

  • BMC has developed a wide personal network in government, industry, media and academia
  • Control of
  • increasing number of railway hubs for the "All-China Roll-out" Program.
  • increasing number of important airportsenables BMC to scale-up and roll-out successes from one site to all sites across China.
  • BMC and JV-partner Skyflying Media are the No. 1 OOH Media company in China as of 2008.

  • BMC is ideal partner to form JVs with leading western exhibitionsfor China

  • September 2007: Optoelectronics exhibition takes the lead as worldwide the most important industry fair (+22% space in 2007)

  • October 2007: BMC wins important media format licences at new Terminal 3 in Beijing
  • November 2007: China Mining with new records (+20% visitors in 2007)
  • January 2008: BMC Advertising gains long-term airport advertising contracts from Ferrari and Samsung
  • January 2008: BMC gains Mobius Gold Award for best OOH Advertising in China (MengNiu ceiling project in Beijing Central Station)

  • February 2008: BMC and Tianjun (Skyflying Media in English) sign Joint Venture starting in April 2008 to become China's leading Outdoor Advertising Company

  • BMC at a Glance

  • China – A growing advertising and exhibition market

  • Strategy and strategic strengths

  • OOH Media

  • Exhibitions & Conferences
  • Peer group analysis
  • 2007: key figures
  • Outlook

Airport advertising

Airport customers

Global players and domestic companies

Airports advertising Acces to all top 15 airports

A
i
t
r
p
o
r
s		 P
a
s
s
e
n
g
e
r
s
i
i
2
0
0
7
M
n
o		 C
B
M
F
D
d.
o
n
a
w
i
/
R
h
t
g
s
L
i
i
i
d
c
e
n
s
e
s
n
s
e
A
i
t
r
p
o
r
s		 C
B
M
F
D
d
i
i
t
o
n
a
e
r
s
n
g
w
v
i
/
i
i
R
h
L
d
t
t
t
g
s
c
e
n
s
e
s
a
r
e
c
(
d
i
t
t
t
a
c
c
e
s
s
s
r
e
e
s
r
e
c
)
d
i
f
A
i
t
s
r
r
o
n
n
g
o
r
p
o
r
u
u		 C
B
M
F
D
t
a
c
s
a
s
S
l
A
t
a
e
s
g
e
n
P
k
i
B
C
I
A
e
n
g		 3,
3
1
5		 X
G
h
B
i
a
n
g
o
a
n
u
z
u
y
u
I
i
l
A
i
t
t
t
n
e
r
n
a
o
n
a
r
p
o
r		 3
0,
9
5		 X
S
h
h
i
P
d
a
n
g
a
u
o
n
g
I
i
l
A
i
t
t
t
n
e
r
n
a
o
n
a
r
p
o
r		 2
8,
9
5		 X X
S
h
h
i
H
i
a
n
g
a
o
n
g
q
a
o		 2
2,
6
1		 X X X
S
h
h
e
n
e
n
z		 2
0,
6
1		 X
C
h
d
e
n
g
u		 1
8,
5
7		 X
K
i
u
n
m
n
g		 1
5,
7
3		 X
H
h
a
n
g
z
o
u		 1
1,
3
7		 X X X
\
X
i
'a
X
i
n
a
n
y
a
n
g
I
i
l
A
i
t
t
t
n
e
r
n
a
o
n
a
r
p
o
r		 1
1,
3
7		 X
C
h
i
o
n
g
q
n
g		 1
0,
3
5		 X
X
i
a
m
e
n		 8,
6
9		 X X
Q
i
d
L
i
i
t
n
g
a
o-
u
n
g		 8
7,
7		 X
D
l
i
a
a
n		 2
8
7,		 X
H
i
k
a
o
u		 7,
2
7		 X
F
h
u
z
o
u		 4,
1		 X

Railway advertising

BMC and Tianjun Media Co., Ltd. (in English: Skyflying Media Co., Ltd.) signed a Joint Venture Agreement (51% BMC, 49% Skyflying Media) for the exclusive sales of both parties media formats. Starting in April 2008 under the JV name BMC Skyflying Media Co., Ltd. exclusive sales will start stepwise:

  • 1.Railway Media Beijing, Guangzhou, Shenzhen stations
  • 2.Airport Media in 15 major cities
  • 3.Metro Media in Guangzhou and Shenzhen
  • 4.Bus Stops and other media in Guangzhou and Shenzhen

In addition to existing media formats, both partners will acquire and join biddings for Metro lines in Beijing, Shanghai Station and other prime media sites.

C
S
B
i
j
i
l
R
i
l
i
t
t
t
e
n
g
e
n
r
a
a
w
a
y
a
o
n		 G
C
S
h
l
R
i
l
i
t
t
t
u
a
n
g
z
o
u
e
n
r
a
a
w
a
y
a
o
n
S
B
i
j
i
W
R
i
l
i
t
t
t
e
n
g
e
s
a
a
a
o
n
w
y		 G
S
h
E
R
i
l
i
t
t
t
a
n
g
o
a
s
a
a
a
o
n
u
z
u
w
y
S
h
i
j
i
h
C
l
R
i
l
S
i
t
t
t
a
z
u
a
n
g
e
n
r
a
a
w
a
y
a
o
n		 S
h
C
l
R
i
l
S
i
t
t
t
e
n
z
e
n
e
n
r
a
a
w
a
y
a
o
n
1
C
S
T
i
j
i
l
R
i
l
i
t
t
t
a
n
n
e
n
r
a
a
a
a
o
n
w
y		 2
S
S
h
L
W
i
t
t
e
n
e
n
o
a
o
n
z
u
u

1Not yet operational, planned for 2008

2The station serves as a primary checkpoint for rail passengers between Hong Kong and mainland China and vice-versa

Next steps of All China roll-out will include Beijing South, Shanghai and Chengdu.

Railway Customers

26

Exhibitions & Conferences

With its 25 years history in exhibition, conference and publishing, BMC is a major player in China.

The portfolio:

  • 9 leading international exhibitions & conferences in ChinaThereof: 4 No.1 events in China
  • 1 No. 1 event worldwide

www.bmc-expub.com

BMC's most important events

China Beauty ExpoChina's No. 1 Exhibition in China.

China MiningNo.1 Mining Event in China and No. worldwide.

China SMT ForumThe most important SMT & MPT Event in China.

MICROPACConcurrent to China SMT Forum.

China Municipal TransportNo. 1 Transport & Logistic Exhibition in China.Procurement Exhibition for the Chinese Government.

PPI&FDC China (concurrent) Two of the Top-3 Food Exhibitions in China.

GIMT ChinaOne of the most important Machine Tool Exhibitions in South China.

CIOENo. 1 Optoelectronics Exhibition worldwide.

CHINA MINING – Hosted by the Ministry of Land and Resources is the major event of the mining industry in China and the No. 2 worldwide:

  • Endorsed by the National Development and Reform Commission, Ministry of Finance, Ministry of Commerce
  • Opening by Zeng Peiyan, Vice Premier, and Xu Shaoshi, Minister of Land & Resources
  • 3,000 conference participants from all over the world
  • All CEOs of industry joining
  • 200 exhibition booths from 46 countries

www.china-mining.com

EBIT Targets - Exhibitions

EBIT-target comparison of Exhibitions in Germany & China

China is far moreattractive forExhibitions thanEuropean countrieslike Germany.

BMC intends to beat the industry's profitability standards by mid-term

  • BMC at a Glance
  • China – A growing advertising and exhibitionmarket
  • Strategy and strategic strengths
  • BMC's operations
  • OOH Media
  • Exhibitions & Conferences

Peer group analysis

  • 2007: key figures
  • Outlook

The OOH Competition

The outdoor advertising market in China is very fragmented. According to the China Advertising Association, there are around 60,000 outdoor advertising companies.

The Top Seven cover approx. 16% of the market.

1.
T
i
j
S
k
f
l
i
M
d
i
/
B
M
C
G
a
n
n
n
g
e
a
r
o
p
u
y
y
u		 R
*
E
U
R
M
i
2
0
0
8
1
4
0-
1
5
0
e
e
n
e
s
e
o.
v
u
C
2.
J
D
e
c
a
u
x		 R
2
0
0
8
*
E
U
R
1
2
0
M
i
e
v
e
n
u
e
s
e
o.
C
l
M
d
i
3.
e
a
r
e
a		 R
*
E
U
R
M
i
2
0
0
8
1
0
5
e
v
e
n
u
e
s
e
o.
C
S
4.
B
O
d
t
u
o
o
r		 R
2
0
0
8
*
E
U
R
3
6
M
i
e
e
n
e
s
e
o.
v
u
5.
A
i
d
i
r
m
e
a		 R
*
E
U
R
M
i
2
0
0
8
3
4
e
v
e
n
u
e
s
e
o.

* BMC Estimates 2008e Outdoor Advertising Market EUR 3,4 Billion

Peer's EBITDA as percentage of sales

The OOH Media Industry achieves worldwide significant EBITDA-Margins.

Peer group analysis

Valuation peer group

Market capitalization of BMC & it's Peers

Source: Bloomberg,April 10, 2008

Peer group analysis

Valuation peer group

P/E 2007 ratio of BMC Peers

Source: Bloomberg,April 10, 2008E P/E's

Attractiveness of industry produces high PE-ratios.

  • BMC at a Glance
  • China – A growing advertising and exhibitionmarket
  • Strategy and strategic strengths
  • BMC's operations
  • OOH Media
  • Exhibitions & Conferences
  • Peer group analysis
  • 2007: key figures
  • Outlook

2007 key figures

Consolidated Companies of BMC Group

C
B
M
Z
he
i
nw
e
5
1
%
Gu
ho
an
g
z
u
C
in
B
M
F
ly
g
5
1
%
Dr
Be
i
j
in
ag
on
g
,		 B
M
C
T
B
G
5
1
%
Ho
ko
ng
ng
T
C-
Gr
up
p
e
7
0
%
Lu
dw
ig
bu
s
rg
B
M
C
A
dv
is
in
t
er
g
1
0
0
%
Be
i
j
in
g
Ma
Ho
l
d
in
ss
g
s
1
0
0
%
Ho
ko
ng
ng
B
M
C
He
ro
ng
7
0
%
S
he
nz
en
C
i
B
M
Z
he
nw
e
5
1
%
Gu
ho
an
g
z
u
C
in
B
M
F
ly
g
5
1
%
Dr
Be
i
j
in
ag
on
g
,		 B
M
C
S
ky
f
ly
in
g
5
1
%
ia
i
j
in
Me
d
*
Be
g
B
M
C
T
B
G
5
1
%
Ho
ko
ng
ng
C-
T
Gr
up
p
e
8
8
%
Lu
dw
ig
bu
s
rg
B
M
C
A
dv
is
in
t
er
g
1
0
0
%
Be
i
j
in
g
Ma
Ho
l
d
in
ss
g
s
1
0
0
%
Ho
ko
ng
ng
B
M
C
He
ro
ng
7
0
%
S
he
nz
en
B
M
C
Z
he
i
nw
e
6
6
%
Gu
ho
an
g
z
u
C
B
M
F
ly
in
g
5
1
%
Dr
Be
i
j
in
ag
on
g
,
C
iw
B
M
Ba
en
5
5
%		 ia
B
V
W
Me
d
1
0
0
%
S
tu
t
tg
t
ar
C
iw
B
M
Ba
en
5
5
%
S
ha
ha
i		 ia
B
V
W
Me
d
1
0
0
%
S
tu
t
tg
t
ar
B
M
C
Ba
iw
en
5
5
%
S
ha
ha
i		 B
V
W
Me
d
ia
1
0
0
%
S
tu
t
tg
t
ar
C
B
M
Ba
iw
en
5
5
%
S
ha
ha
i
ng
C
C
in
B
M
h
a
1
0
0
%
Be
i
j
in
g
C
B
M
A
G
1
0
0
%
S
tu
t
tg
t
ar		 S
ha
ha
i
ng
C
C
in
B
M
h
a
1
0
0
%
Be
i
j
in
g
C
B
M
A
G
1
0
0
%
S
tu
t
tg
t
ar		 ng
C
C
in
B
M
h
a
1
0
0
%
Be
i
j
in
g
C
B
M
A
G
1
0
0
%
S
tu
t
tg
t
ar		 ng
C
C
in
B
M
h
a
1
0
0
%
Be
i
j
in
g
C
B
M
A
G
1
0
0
%
S
tu
t
tg
t
ar		 C
C
B
M
h
in
a
1
0
0
%
Be
i
j
in
g
B
M
C
A
G
1
0
0
%
S
tu
t
tg
t
ar
2
0
0
4		 2
0
0
5		 2
0
0
6		 2
0
0
7		 2
0
0
8

2007 key figures

ConsolidatedProfit & Loss Statement

i
T
E
U
R
n		 2
0
0
7		 2
0
0
6
R
e
v
e
n
u
e
s		 2
3,
1
2
2.
0		 7,
4
5
2.
6
I
i
i
t
n
c
r
e
a
s
e
n
n
e
n
o
r
v
y		 6
7.
7		 0
0
O
h
i
t
e
r
n
c
o
m
e		 2
4
8.
8		 2
6.
0
O
i
t
p
e
r
a
e
e
p
e
n
s
e
s
v
x		 1
8,
0
1
9.
8
-		 6
0
2
3
7
-
,
i
G
r
o
s
s
m
a
r
g
n		 5,
4
1
8.
7		 1,
4
0
6.
3
P
l
e
r
s
o
n
a
e
x
p
e
n
s
e
s		 4
8
5
9.
1
-
,		 1,
8
8
3
9
-
D
i
i
t
e
p
r
e
c
a
o
n		 1,
0
0
0
7
-		 1,
7
6
6
4
-
O
h
t
e
r
e
p
e
n
s
e
s
x		 3
8
6
6
5
-
,		 4
6
4
3
7
-
,
F
i
i
l
l
t
n
a
n
c
a
r
e
s
u		 1
0
7.
8		 2
8
4
1
E
i
b
f
t
a
r
n
n
g
s
e
o
r
e
a
x		 5,
1
9.
9
7
-		 6,
6
0
2
7.
-
C
t
t
o
r
p
o
r
a
e
a
x		 3
0.
2
5		 1
9
6.
8
N
l
t
t
e
r
e
s
u		 5,
3
6
9.
7
-		 6,
4
1
0.
4
-

Revenues +210%

  • Gross margin increased strongly
  • Slightly improved BMC Group result
  • Currency impact -5%

BMC Group consolidated balance sheet 2007

Strong equity ratio of 68%.

2007 key figures

Increase of long term assets from23% in the prior year to 45% in 2007.

2007 key figures

Revenue analysis

  • Strong growth of OOHOutpaces strong development of Exhibitions & Conferences
  • Software sales irrelevant in 2007

2007 key figures

Investments 2007

  • Successful acquisitions havefurther strengthened ourcompetitive position
  • Total investment volume 2007: EUR 9.6 million

  • EUR 5.6 million working capital was provided to OOH media to acquire new media formats.

  • BMC at a Glance

  • China – A growing advertising and exhibitionmarket
  • Strategy and strategic strengths
  • BMC's operations
  • OOH Media Media
  • Exhibitions & Conferences
  • Peer group analysis
  • 2007: key figures

Outlook

According to the actual planning status BMC expects to achieve in fiscal 2008 a turnover between EUR 35-45 mn based on the established business activities.

BMC also expects to achieve a positive pre-tax result. The turning to group profitability will be supported by the already profitable Exhibition & Conferences segment as well as by the strongly growing OOH Media segment that will become substantially profitable in 2008.

Contact

Business Media China AG

Rotebuehlstr. 8770178 Stuttgart – Germany Tel. +49 711 490 89 0Investor RelationsEdwin van der GeestTel. +41 79 330 55 22

[email protected]

www.businessmediachina.com

More from Readcrest Capital AG

Director's Dealing 2025
Dec 22
Director's Dealing 2025
Dec 10
Declaration of Voting Results & Voting Rights Announcements 2025
Dec 9
Director's Dealing 2025
Nov 27
Share Issue/Capital Change 2025
Nov 18
Declaration of Voting Results & Voting Rights Announcements 2025
Nov 7
Director's Dealing 2025
Nov 7
Declaration of Voting Results & Voting Rights Announcements 2025
Nov 5
Declaration of Voting Results & Voting Rights Announcements 2025
Oct 30
Related Party Transaction 2025
Oct 6
View all filings →

Talk to a Data Expert

Have a question? We'll get back to you promptly.