PIONEERING SOLUTIONS FOR TOMORROW VGI INVESTOR PRESENTATION JUNE 2019
DISCLAIMER
EVOLUTION FROM TRADITIONAL ADVERTISING TO “O2O SOLUTIONS” BANGKOK CENTRIC NATIONWIDE NETWORK 2015 1999 2009 2012 2015 O2O SOLUTIONS 2015 2017 2018 2019 2019
WHAT WE DO ADVERTISING PAYMENT LOGISTICS
ADVERTISING NO.1 OUTDOOR NO.1 TRANSIT NO.1 BUILDING >740,000 >980,000 >1,200,000 30 208 180 317 >1,200 >20,000 >2,000 >2,100 >800 >1,000 NO.1 ACTIVATION NO.2 AIRPORT NO.1 DELIVERY >1,385,000 >110,000 >1,100,000 14 1 >6,000 >20,000 > 360 >1,000 51 70
PAYMENT 12mn Cards 5.9mn Users 1.2mn Members 4.2mn Members 100k Users
LOGISTICS 2018 2016 2015 2013 2012 2006
VGI BUSINESS MODEL ADVERTISING PAYMENT LOGISTICS DATA AWARENESS ENGAGEMENT CONVERSION IMPACT R&F ENGAGEMENT PAYMENT CONVERSION LOYALTY O2O SOLUTIONS
DATA 36mn Riders WHAT CAN THESE TELL US? VGI CORPORATE DATA Car Insurance Buyers 12mn Cards 5.9mn Users 100K Users : Credit Card Comparisons : 1.2mn Members 4.3mn Members Airport Wifi 18.5mn : Reachable PARTNERSHIP DATA Unionpay Card Data : Kerry 13mn Receipts and Sellers 1 : Chinese audience
O2O SOLUTIONS Asok FACEBOOK WEB / APP
O2O SOLUTIONS AWARENESS ENGAGEMENT+CONVERSION CONVERSION ADVERTISING AWARENESS + ENGAGEMENT ENGAGEMENT + CONVERSION + REWARDS RETARGETING RETARGET
O2O SOLUTIONS AWARENESS ENGAGEMENT + CONVERSION + LOYALTY ADVERTISING 1. CONVERSION 2. ENGAGEMENT PAYMENT 5. REWARD (LOYALTY) 4. CONVERSION 3. ENGAGEMENT RETARGETING RETARGET
FOCUSING ON THE HIGHEST GROWTH INDUSTRY
OOH AND ONLINE OUTPERFORMING INDUSTRY SPENDING ONLINE CAGR 1 = 58.7% OOH CAGR 1 = 8.8% INDUSTRY CAGR 1 = 3.3% TRADITIONAL CAGR 1 = 0.6% Improving of OOH Media Fragmentation of other Increasing mobility Increasing urbanization (Digitalization, data, planning tools, broadcasting channels mobile connection etc.)
RIDE ON E-COMMERCE 4X E-COMMERCE MARKET Increasing Demand Growth Opportunity Increasing Players In Increasing Transaction On Goods Delivery For E-Payment & E-commerce Market Through Online And Other Services Logistics
STRATEGIC GROWTH DIRECTION AND UPDATE
ENGINES FOR GROWTH PAYMENT • • B2C DATA FOR O2O SOLUTIONS ADVERTISING LOGISTICS • • • • • B2B B2B, C2C, B2B2C
5-6X ORGANIC GROWTH ADVERTISING 5-6X INCREASE IN TRAIN & STATION CAPACITY
INVENTORY EXPANSION ADVERTISING ENHANCE MEDIA IMPACT DIVERSIFIED PRODUCT LINES OBJECTIVE IMMERSE IMPACT/EXPERIENCE HYBRID INCREMENTAL INVENTORY REACH/FREQUENCY CONNECT AUDIENCE PREMIUM MASS
USE OF TECHNOLOGY ADVERTISING VGI IMMERSE DRIVES AVG. 2X IMPACT AND ENGAGEMENT 118% IMPACT / ENGAGEMENT 50% AD RECALL 110% CONVERSION RATE*
BROADEN USER-BASE PAYMENT 2016 – 2018 ACHIEVEMENTS 2021 STRATEGIC EXPANSION • • • • • • USER • • • • SERVICE MERCHANT • • • • • • • • TARGETING 10 MILLION MAU IN 2021
STRATEGIC PARTNERSHIP PROVED TO ACCELERATE GROWTH IN USER BASE PAYMENT RABBIT CARD RABBIT LINEPAY +23.2% +83.0% YTD YTD
IMPROVE USER EXPERIENCES: EASIER ACCESS TO OUR SERVICES PAYMENT USER INTERFACE – OLD VERSION USER INTERFACE – NEW VERSION • • • •
NETWORK EXPANSION TO ACCOMMODATE THE RISE OF E-COMMERCE LOGISTICS KERRY PARCEL SHOP 125X KERRY PARCEL DELIVERED DAY 1,000,000 KERRY TRUCK C2C C2C 70% 67% C2C 500,000 65% C2C C2C C2C 50% 50% 50% 75,000 B2C B2C B2C B2C B2C 40% 40% 30% 26% 31% 40,000 8,000 40,000
NEW PRODUCT DEVELOPMENT: SMART SAMPLING LOGISTICS AWARENESS TRIAL INSIGHT CUSTOMER FEEDBACK BRAND COMMUNICATE PRODUCT COMMUNICATE FOR ACTIONABLE INSIGHTS RETARGETING AUDIENCES
O2O SHOWCASES SUCCESSFUL NEW PRODUCT LAUNCH FULL COVERAGE OF BKK AUDIENCES 1.5X 100% 22% 44% TELECOM 50% APPLICATION GAIN MORE SUBSCRIBER DRIVE PURCHASE LIKELIHOOD 98% 20% ONLINE STREAMING 1.7X SERVICE 50% MOBILE PHONE
BUSINESS UPDATE
PARTNERSHIP WITH ANYMIND GROUP TRANSACTION SUMMARY SHAREHOLDING STRUCTURE Step 1: Investment in AnyMind Group (“ AnyMind ”) % of investment Total investment Step 2: Establish JVCo namely “VGI AnyMind Technology Co., Ltd.” % of holding Registered capital: Source of fund: RATIONALE AND SYNERGIES OF THE JOINT VENTURE • • •
ANYMIND GROUP AT A GLANCE 11 MARKETS ACROSS ASIA HISTORICAL REVENUE OF ANYMIND GROUP (USD mn) PUBLISHER PARTNERS
ACQUISITION OF 18.6% IN PLAN B MEDIA PUBLIC COMPANY LIMITED (PLANB) TRANSACTION SUMMARY PRE SHAREHOLDING STRUCTURE % of investment Total shares acquisition Acquisition price Total investment Source of fund: MANAGEMENT AND CONTROL POST SHAREHOLDING STRUCTURE • • RATIONALE • • • •
PLANB AT A GLANCE OOH MEDIA OPERATES IN THAILAND IN VARIOUS SEGMENTS 1 • 100% 100% 45% 100% 70% Verisign SRPB Ads Cuisine MSD Golink 2 • • Engagement Marketing • Outdoor and Modern Airport International Business Trade and Online 3 • • • • • • • • • • • • • • • • • 4 • Verisign Tuna • SRPB Sign Work Ads Cuisine • BNK 48 • MSD BNKP ASL Golink 5 Maxview APL • • Mercy Plus Digital • Factory The One Plan B Plus • Eleven Triple Play Plan B 6 WPS • Bright Sky – – • Source : SETSMART as of 15 March 2019 –
TRANSFORMING MARKETING LANDSCAPE POWERFUL CONSOLIDATED OOH NETWORK 100% Bangkok Takeover 70% Nationwide Coverage BTS, Bus, Digital &Static Billboards, Buildings, Airports Digital & Static Billboards,Malls, Kerry Trucks, Airports Awareness UNIQUE MARKETING ENGAGEMENT Engagement & Loyalty Rabbit Services Kerry Services Direct to Consumer Music Sport FLEXIBLE TRANSACTION PLATFORMS Retail VGI Rabbit partners Payment Logistics SPI Conversion DATA AND DATA MANAGEMENT PLATFORM Retarget O2O SOLUTIONS
COLLABORATION HORIZON DELIVER OPTIMUM VALUE CENTRALISING EXPAND OOH MEDIA AND OF OOH NETWORK FOR COST EFFICIENCY EXPLORE NEW MARKETING CHANNELS • • • • • • • • • • SHORT TERM MEDIUM TERM LONG TERM
PARTNERSHIP WITH I-CLICK INTERACTIVE ASIA GROUP TRANSACTION SUMMARY RATIONALE AND SYNERGIES OF THE JOINT VENTURE Established the JVCo namely “V - Click Technology Co., Ltd.” • • % of holding Registered capital: • Source of fund: China Solutions: • O2O Solutions: • Mobile Application: • SHAREHOLDING STRUCTURE POTENTIAL PARTNERS
I-CLICK AT A GLANCE Advertisers & Customers Marketers Trading Desks Data Technology Multinational Chinese Customer Consumer Media Coverage Dataset 2,500+ ~780mn HISTORICAL REVENUE OF I-CLICK (USD mn) I- CLICK’S SHOWCASE 87% 11.9 X 126% 2016 2017 2018
ACQUISITION OF 25.0% IN ADS CHAO PHRAYA COMPANY LIMITED TRANSACTION SUMMARY PRE SHAREHOLDING STRUCTURE % of investment Total shares acquisition Total investment VGI General Mandate RATIONALE POST SHAREHOLDING STRUCTURE • • •
ADS CHAO PHRAYA AT A GLANCE NO. OF PIERS NO. OF BOATS HISTORICAL REVENUE OF ACP (THB mn) 26 80 22 60 30 NO. OF BILLBOARDS >225 >150 2016 2017 9M2018
FINANCIAL
VGI FINANCIAL PERFORMANCE 2015/16 2016/17 2017/18 2018/19 YoY (%) 1 (restated) • INCOME STATEMENT (THB mn) • • • BALANCE SHEET (THB mn) ADVERTISING THB 3,847mn (74.6%) OUTDOOR OFFICE & OTHER CASH FLOW (THB mn) PER SHARE DATA (THB/ share) THB 5,158mn DIGITAL SERVICES 3 TRANSIT KEY RATIOS
2018/19 HIGHLIGHTS FINANCIAL PERFORMANCE KEY OPERATION METRICS Revenue Office +31.0% 180 1,358 Net Profit Outdoor +30.1% >2,000 35 Offline Payment Profitability 11.0 55.7% Online Payment 40.9% 5.5 21.4% Logistics >200,000
2018/19 OVERVIEW PROFIT AND LOSS STATEMENT THB (mn) 2017/18 2018/19 YoY (%) 2018/19 REVENUE CONTRIBUTION KEY FACTORS ADVERTISING • THB 3,847mn (74.6%) OUTDOOR OFFICE & OTHER • THB • 5,158mn TRANSIT DIGITAL SERVICES * •
REVENUE BY BUSINESS UNITS TRANSIT MEDIA REVENUE (THB mn) +4.1% YoY +0.8% YoY OFFICE & OTHER MEDIA REVENUE (THB mn) +22.4% YoY +6.9% YoY
REVENUE BY BUSINESS UNITS OUTDOOR MEDIA REVENUE (THB mn) 12.6% YoY -20.0% YoY DIGITAL SERVICES REVENUE (THB mn) +246.8% YoY +290.9% YoY
BALANCE SHEET & CASHFLOW ASSETS BREAKDOWN (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) 22,687 22,687 Current liabilities 20.4% 23.5% Current assets Non-current liabilities 7.1% 9,632 9,632 21.3% 76.5% Non-current assets 72.5% Equity 38.5% 17.2% 61.5% 61.5% IB Debt D/E ratio CASH FLOW (THB mn) CAPEX (THB mn) Actual Target 2018/19 2018/19 Total VGI Total
2019/20 VGI TARGETS AND CAPEX REVENUE EBITDA margin NPAT margin CAPEX 6,000 - 6,200mn 40 – 45% 20 - 25% 700mn
APPENDIX
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