VGI Global Media PCL VGI Group General Presentation November 2018 Prepared by Investor Relations Department VGI Global Media Plc
Disclaimer Investment involves risk. Prospective should understand the characteristics of Securities and study information about VGI Global Media Public Company Limited (“VGI” or the “Company”) before making a decision to invest in Securities. This Presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this Presentation. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be, relied on as promise or representation of the Company as to the future. Prepared by Investor Relations Department 2 VGI Global Media Plc
Agenda Section 1 4 Company at a Glance Section 2 Strategic Direction 8 Section 3 Focus on Fast-Growing Industry: Media and E-Commerce 12 Section 4 Business Profile by Segment and Potential Upsides Section 4.1 Advertising 15 Section 4.2 Payment 25 Section 4.3 Logistics 27 Section 5 30 O2O Showcases Section 6 35 2017/18 Financial Performance Section 7 37 2Q 2018/19 Financial in More Detail & Business Update Appendices Prepared by Investor Relations Department 3 VGI Global Media Plc
Company at a Glance Key investment features Leading in a strong industry with diversified world-class assets • #1 share position in OOH advertising – with over THB 7,000mn inventory on hand • #1 share position in micropayment (Rabbit Group) – with more than 4mn rewards members • #1 share position in logistics (Kerry Express) - delivers more than 1,000,000 parcels daily Exclusive market positions • Partnership with leading players including BTS, LINE, Kerry Express, AIS and Rabbit Group, directly connecting to 18mn users Solid growth prospects • 4 – 5 times expected increase in transit media capacity by 2021/22 through relationship with BTS • Exposure to the fast-growing e-commerce industry through Kerry Express and Rabbit Group Largest and most profitable media company • No. 1 listed Media Company on SET by market capitalisation of THB 64,603m (USD 1,951m). • Most profitable OOH media company in Thailand and is the top five most profitable OOH media companies in Asia, generating THB 3,936m in total sales revenue with a superior profit margin of 21.5%. Prepared by Investor Relations Department 4 Section 1: Company at a Glance VGI Global Media Plc
Company at a Glance Key milestone 1990s - 1999 BEGINNINGS 1990s: Keeree Kanjanapas founded the BTS 1 , operator of BTS SkyTrain 1998: His son as business successor, Kavin Kanjanapas then invented the new concept and business model of BTS SkyTrain financed by advertising, laying the foundations for the company’s future success. VGI Global Media (“VGI”) was born. 2003 – 2010 1999: The BTS Skytrain system was officially opened. VGI was granted the exclusive right from BTS to manage the advertising spaces and commercial areas on all BTS network EXPANSION which will be expired in December 2029. 2003-2010: Entered into the Modern Trade media business at Tesco Lotus and Big C. 2009: Acquired 100% of POV 2 , the leading Office media in Bangkok CBD. 2010: Acquired the right to manage advertising on the BRT bus system 2012 – 2016 THE NO.1 OOH NATIONWIDE MEDIA REAL ESTATE AGENT 2012: Become a publicly traded company on the SET 2013 – 2014: Included as a constituent member of SET 100 and SET 50 2015: 2017 - Present • Exited the Modern Trade media business. Expanded its stake in MACO 3 to 37% – the leading Outdoor media with nationwide • TRANSFORMING TO THE O2O SOLUTIONS network coverage and overseas expansion. 2017: Acquired 90% in Rabbit Group 6 – the leading digital solutions. Acquired 30% of Aero Media 4 – the leading Aviation media across Thailand • 2018: Successfully acquired 23% in Kerry Express (Thailand) – the leading parcel Acquired 40% stake in Demo Power 5 – the leading demonstration services reaching • delivery services in Thailand. to end-consumer nationwide. 2016: • Now present in all provinces of Thailand, VGI becomes the #1 Out-of-Home Media Platform in Thailand 1 BTS refers to Bangkok Mass Transit System Plc. 2 POV refers to Point of View Media Group Co. Ltd. 3 MACO refers to Master Ad Plc. 4 Aero Media refers to Aero Media Group Co. Ltd. 5 Demo Power refers to Demo Power (Thailand) Co. Ltd. 6 Bangkok Smartcard System Co. Ltd. and BSS Holdings Co. Ltd. Prepared by Investor Relations Department 5 Section 1: Company at a Glance VGI Global Media Plc
Company at a Glance Shareholding structure, historical dividend payment and share price movement SHAREHOLDING STRUCTURE (as of November 2018) DIVIDEND INFORMATION Dividend Policy: Not less than 50% of net profit 0.1% 2.7% 2.7% Kanjanapas BTSG’s 1.2% 1.2% Family Minorities Payout Ratio: 2014/15 123% 41.0% 59.0% 1,033 2015/16 85% 741 BTSG 755 97.5% 62% 2016/17 412 87% 2017/18 Kanjanapas BTSC Public 2014/15 2015/16 2016/17 2017/18 Family 0.5% 25.7% 28.7% 45.0% 0.6% Dividend (THB mn) Dividend Yield (%) VGI Note: • Dividend yield is calculated using VGI closing share price one day before the date of BOD meeting approving the relevant dividend. • 2014/15 interim dividend included stock dividend (at par value) of 1:1 SHARE PRICE MOVEMENT (as of 16 November 2018) SHARE INFORMATION (as of 31 October 2018) (THB) (THB mn) Stock code VGI 9.0 1,200 8.0 1,000 Outstanding shares (mn shares) 8,556.7 7.0 7.85 6.0 800 Market capitalisation (THB mn) 64,602.9 5.0 600 4.0 Market capitalisation (USD mn) 1,951.2 3.0 400 2.0 ADTV = THB 128mn 200 84.7 Average daily traded value (THB mn) * 1.0 0.0 0 Average daily traded value (USD mn) * 2.6 *Last 12 months average daily traded value VGI TURNOVER (RHS) SET Index (rebased) VGI TB Prepared by Investor Relations Department 6 Section 1: Company at a Glance VGI Global Media Plc
Agenda Section 1 4 Company at a Glance Section 2 Strategic Direction 8 Section 3 Focus on Fast-Growing Industry: Media and E-Commerce 12 Section 4 Business Profile by Segment and Potential Upsides Section 4.1 Advertising 15 Section 4.2 Payment 25 Section 4.3 Logistics 27 Section 5 30 O2O Showcases Section 6 35 2017/18 Financial Performance Section 7 37 2Q 2018/19 Financial in More Detail & Business Update Appendices Prepared by Investor Relations Department 7 VGI Global Media Plc
Strategic Direction Diversified world class platforms ADVERTISING PAYMENT LOGISTICS Offline & Online Transit & Office Outdoor Airport Activation Market Place Micro Loan Smart Delivery Payment THB 7,000mn media capacity 4mn rewards members 1,000,000+ parcels/ day 18M USERBASE DATA O2O SOLUTIONS Conversion Awareness Engagement Prepared by Investor Relations Department 8 Section 2: Strategic Direction VGI Global Media Plc
Strategic Direction Combine advertising, payment and logistics platforms to create data driven solution OFFLINE TO ONLINE SOLUTIONS DATA CONNECTOR ADVERTISING PAYMENT LOGISTICS PLATFORM VALUES GROWTH INNOVATION FUNDAMENTAL ADVERTISING PAYMENT LOGISTICS Apart from the organic growth, we will We aim to expand our rewards members Triple the delivery and activation increase our digital inventories by 40% in from 4mn to 10mn members and expand capacity, it will allow us to have 2mn daily interaction with consumers. order to link the offline content to online our payment touch points nationwide within the next 3 years. by applying our programmatic technology Prepared by Investor Relations Department 9 Section 2: Strategic Direction VGI Global Media Plc
Strategic Direction 3-Year revenue target at THB 10bn and net profit at THB 2bn FINANCIAL TARGET OPERATION TARGET Revenue of THB 10bn in 2020/21 Advertising AD +35% 3-year CAGR +40% digital screens Net profit of THB 2bn in 2020/21 +30% 3-year CAGR Payment 10mn rewards members Logistics 2mn daily interaction User base data 40mn data points with depth and more dimension for targeting and media planning Prepared by Investor Relations Department 10 Section 2: Strategic Direction VGI Global Media Plc
Agenda Section 1 4 Company at a Glance Section 2 Strategic Direction 8 Section 3 Focus on Fast-Growing Industry: Media and E-Commerce 12 Section 4 Business Profile by Segment and Potential Upsides Section 4.1 Advertising 15 Section 4.2 Payment 25 Section 4.3 Logistics 27 Section 5 30 O2O Showcases Section 6 35 2017/18 Financial Performance Section 7 37 2Q 2018/19 Financial in More Detail & Business Update Appendices Prepared by Investor Relations Department 11 VGI Global Media Plc
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