CREATING COMMUNICATION CHANNELS OF CHOICE FOR ASEAN PLAN B MEDIA PUBLIC COMPANY LIMITED PLAN B MEDIA PUBLIC COMPANY LIMITED
2 PLAN B MEDIA PUBLIC COMPANY LIMITED
03 01 02 Collaboration Strategy and The Engagement of top players Marketing Business Update In OOH industry 0 4 05 Operational Guidance 2019 Highlight 2019 3 PLAN B MEDIA PUBLIC COMPANY LIMITED
01 Strategy and Business update 4 PLAN B MEDIA PUBLIC COMPANY LIMITED
Our Strategy Towards 5BN Revenue in 2020 Plan B Long-term Growth Strategy 1 Core Media: Building diversified OOH media network and expanding to new territories 2 Adjacencies Media: Exploring opportunities in adjacencies media to enhance integration 3 Step-out Opportunities: Seek step-out channel to add to portfolio to leapfrog growth …with an aim to achieve Discipline in organic CAPEX plan To continue expand revenue of THB 5 bil. in 2020 of 500-800 mil./year media capacity… Unit: THB mn. Inorganic Unit: THB mn. Unit: THB mn. Core media Organic Adjacencies media +20% CAGR 5,800-6,200 10% 4,800 5,078 -5,000 4,569 4,345 +29% CAGR 3,940 4,039 3,025 3,007 90% 2,445 2,170 2,026 1,285 1,465 689 459 1,900 469 372 375 70 826 157 64 600 619 312 308 5 2016 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 2014 2015 2017 2018 2019 2020 Source: Plan B Media PLC. PLAN B MEDIA PUBLIC COMPANY LIMITED
Largest Digital OOH network of 431 screens and still growing Leading Digital OOH provider with the largest network coverage in Thailand No. of digital OOH screens and annual revenue Unit: No. of screens. Revenue ** (THB mil.) 1,894 1,706 1,449 481 431 1,040 1,007 336 311 270 screens diff 212 120 2015 2016 2017 2018 2019 2020 No. of screens offered by Competitors Source: Plan B Media PCL. Note: *Forecasted revenue for 2019 with 75% U-rate 2018 6 Source: Plan B Media PLC. PLAN B MEDIA PUBLIC COMPANY LIMITED
Opportunities across media portfolio to achieve target capacity growth OOH portfolio need to be equipped with enhanced Potential growth across portfolio in 2019-2020 lead to 15-20% marketing tools to raise u-rate beyond standard annual capacity increase No. of Upcountry digital OOH screens and annual revenue 78%-82% Unit: THB mil. 76% Utilization Rate 73% 69%* 15%-20% growth Bus Shelters in Bangkok Strengthen Plan’s B leading position 59%* 5,800-6,200 in street furniture media 5,078 4,569 369 8 4,345 200 280 9 Point of sale media 3,940 315 73 235 Opportunity to convert trade promotion budget 225 238 60 to media revenue by introducing point of sale 3,025 media in convenience stores 2,526 21 7 85 2,261 1,910 1,567 1,107 Olympic 2020 and Asian game 2022 1,261 Capture larger share of marketing budget 1,223 1,222 1,106 1,177 and raise utilization rate for our OOH media portfolio with Olympic content 741 700 673 676 608 2015 2016 2017 2018 2019 2020 Airport Retail Classic Online Digital Transit 7 PLAN B MEDIA PUBLIC COMPANY LIMITED
Recent Business Development 2019 March 2019 May 2019 Investment in Investment in Falcon Media (Singapore) Splash Media -Total investment SGD 750,000 -Total investment THB 160.8 mil. -Annual Revenue SGD 775,007 -Estimated revenue 2019 THB 103.8 mil. -% of Investment 30% -% of Investment 70% -Media Type Digital OOH -Media Type Static media -Asset detail 5 LED screens -Asset detail 79 Billboards (35bbs in Bangkok, 44bbs ) -Key strength Expansion plan over 20 locations in Singapore -Key strength Large size billboards in strategic locations with over 6 months backlog Static Media Static Media Digital Media 8 PLAN B MEDIA PUBLIC COMPANY LIMITED
Olympic Tokyo 2020 commercial rights plus Asian game 2022 as new engagement marketing drivers Sport Marketing 4 Olympic programs + 1 ASEAN game Olympic Tokyo 2020 • Olympic winter game Beijing 2020 • Youth Olympic Dakar 2022 • Youth Olympic Winter game • Lausanne 2020 ASIAN game 2022 • Key commercial rights Broadcasting rights • Sponsorship rights • Content rights • 9 PLAN B MEDIA PUBLIC COMPANY LIMITED
0 2 Collaboration With VGI 10 PLAN B MEDIA PUBLIC COMPANY LIMITED
The business collaboration of the top players in OOH industry Transaction Summary Pre-Investment Structure Total shares of 3,529,607,365 shares % of investment 18.6% of total shares 1. 9.5% from existing shareholders 2. 9.1% from new shares issuance Institutional Founders/Strategic Retail Investors Shareholders Investors Investment price THB 6.40 per share 60% 30% 10% Total investment THB 4,619.6mn Proceed from PP Cash of THB 2,258 mn Management and Control Post-Investment Structure No impact on Management • Total shares of 3,882,568,101 shares 1 of 8 board representative from VGI,under good corporate governance to • avoid potential conflict of interest Institutional Founders/ Strategic Retail Investors Shareholders Investors Rationale 37.0% 27.3% 17.1% 18.6% Centralize for cost savings including leverage proprietary system or • technology. Hence, more overall cost efficient. Joint force to expand into new territories and explore other marketing • channels Consolidate OOH media market with more than 12bn of media inventory • Improve competitive positioning in THB 100bn media industry • 11 PLAN B MEDIA PUBLIC COMPANY LIMITED
Transforming marketing landscape POWERFUL CONSOLIDATED OOH NETWORK Awareness 100% Bangkok Takeover 70% Nationwide Coverage BTS, Bus, Digital &Static Billboards, Buildings, Airports Digital & Static Billboards,Malls, Kerry Trucks, Airports UNIQUE MARKETING ENGAGEMENT Services from Partner Rabbit Services Engagement & Loyalty Kerry Services Direct to Sport eSport Music Consumer FLEXIBLE TRANSACTION PLATFORMS Conversion DATA AND DATA MANAGEMENT PLATFORM 12 O2O SOLUTIONS Retarget PLAN B MEDIA PUBLIC COMPANY LIMITED
…With collaboration across The value chain Joint force to expand into new territories and explore other Centralizing for cost efficiency marketing channels • Manage new assets / • Capturing over THB100 bn of Deliver optimum value concessions acquisition cost media spending in Thailand and of OOH network over USD 26 bn from SE Asia • Sharing proprietary market technology and big data for better understanding • Penetrate through other media Consolidation of over THB 12 bn worth • customer journey platforms by leveraging core of media assets to provide maximum capabilities breath and depth of consumer • Leveraging increased access • Utilize enriched data to marketing power to reduce build flexible platform Redesign products and packages to • selling expenses • Access to multi-platform optimize reach for customer journey marketing communication with engagement Improve media efficiency and • marketing measurement as keys to raise price and to maximize revenue Short term Long term Collaboration Horizon 1-2 years 2-3 years 13 PLAN B MEDIA PUBLIC COMPANY LIMITED
Deliver optimum value of OOH network New Product – One of a kind Strengthen existing product to raise price and utilization rate Initiate new packages by combining media for superior impact • Create new product segment with reachable price to target SME • Shifting to dynamic pricing based on peak hours Offering total marketing solution through media, contents, payment • • and logistics Transit combo 14 Bangkok Takeover Street combo PLAN B MEDIA PUBLIC COMPANY LIMITED
Joint force to expand to new territories for THB 105 bn advertising budget Provide Total Marketing solution and take larger share of wallet from others 1. Increase penetration rate of OOH media by enhancing Planning and Analysis Channel Behavior efficiency Utilize Big Data for Engage with targets through quality Communicate through various better efficiency contents and loyalty program channels 18 mn reachable Over 80% reach 100 % reach in Bangkok 87% 70% reach upcountry THB 105.5 bn Data from Rabbit OOH Office Rabbit Card Payment Platform rewards media 13% Loyalty Transit Rabbit Line Pay Other program Airport advertising … Static media Data from Quality Sport Football Digital other P latform Contents Thai league Retail … … Music BNK48 Other 2. Offer multi-platform marketing … advertising solutions with powerful contents media … eSport PES2019 Gateway … to Other Multi-Platform contents 15 Potential Market PLAN B MEDIA PUBLIC COMPANY LIMITED
Opportunities from synergy to enhance financial performance Boost top line instantly with new bundling Profit margin expected to improve in medium Healthy balance sheet, ready for package and improve u-rate terms from cost saving future expansion Utilization Rate Gross profit Total revenue Net Profit 78% 76% 73% 10,297 10,297 69% 58% Proceed from PP 2,258 2,258 Equity from PP 38% 35% 35% 4,600-5,000 33% 1,189 Current liabilities Cash 1,484 18 +200 4,040 Current asset 3,585 19% 3,007 16% 15% 14% 2,448 6,832 Equity 2,170 PPE 2,247 Other non-current asset 723 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2020 As of 31 Mar 19 + Proceed from issued share THB 200 bn additional revenue from new package GPM and NPM expected to rebound to level of Organic and Inorganic expansion for domestic • • • 2015 within 2 - 3 years and media bundling with VGI and regional OOH business 16 Source: Plan B Media PLC. PLAN B MEDIA PUBLIC COMPANY LIMITED
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