VGI Global Media PCL VGI General Presentation & 2015/16 Earnings Update June 2016
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. 2
Agenda Section 1 4 Company Overview Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 28 Financial Information & 2015/16 Performance Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 3
Company Overview Key Milestone Granted initial “License to Granted “Advertisement Manage Marketing Services Display Concession Invested in MACO - a Agreement” from BTSC Agreement” from leader in billboard and Carrefour Exclusive license to manage street furniture BTSC becomes major the advertising spaces and business, by acquiring shareholder of VGI merchandising areas of 23 24.96% of MACO’s total VGI acquired POV (Office stations and all trains for a shares in May 2014. Building Media) Granted initial period of 10 years Terminated Modern “Advertisement Display Trade media business Concession Agreement” Selected as “Best under from Tesco Lotus a billion” by Forbes Asia (non-Sales floor) 1999 2003 2004 2005 2009/10 2011/12 2012/13 2013/14 2014/15 2015/16 Entered into aviation media by investing in Aero Media 20% of its total shares. Reduced stake in MIDAS Amended “License to Granted initial Granted initial from 30% to 11.11% Manage Marketing “Advertisement “Advertisement Display Announced our intention to Services Agreement” Display Concession Agreement” evolve in “Nationwide with BTSC Concession from Watsons Integrated Media Platform” Listed on SET in Oct 2012 Agreement” Increased stake in MACO from Big C from 24.96% to 37.42% (non-Sales floor) Granted Advertisement Included as a constituent member of Display Concession SET100 Index in Jul 2013 Agreement Included as a constituent member of in “Sales floor” from SET50 Index in Jan 2014 Tesco Lotus and Big C Formed a JV named Midas Global Media Co., Ltd. (MIDAS) Section 1: Company Overview 4
Company Overview At a glance SHAREHOLDING STRUCTURE (as of May 2016) DIVIDEND INFORMATION 1,500 3.5% 4.0% Dividend Policy: Kanjanapas Family BTSG’s Minorities Not less than 50% of net profit. 2.5% 3.0% 2.4% 59.0% 41.0% 1,000 1,053 1,033 2.0% Payout Ratio BTSC’s 755 BTSG 13/14 14/15 15/16 500 Minorities 1.0% 93% 123% 85% 97.5% 2.5% - 0.0% 2013/14 2014/15 2015/16 0.1% Kanjanapas BTSC Public Family Dividend (THB mn) Dividend Yield (%) 0.5% 51.0% 25.2% Note: • Dividend yield is calculated using VGI closing share price one day before the date of BOD meeting approving the relevant dividend. • 2012/13 final dividend and 2013/14 and 2014/15 interim dividend included stock dividend (at par value) of 10:1, 25:1 and 1:1, respectively. • 2015/16 dividend yield per share is calculated from share price one day before AGM on 6 July 2015 23.3% TOP 10 SHAREHOLDERS (based on latest close book) SHARE PRICE MOVEMENT (as of 31 MAY 2016) % May 16 (THB) (THB mn) 1 BTSC 51.0% VGI TURNOVER (RHS) SET Index (rebased) VGI TB 2 BTSG 23.3% 8.00 2,500 3 MR. NARES NGAMAPICHON 2.7% 7.00 4 STATE STREET BANK EUROPE LIMITED 1.9% 2,000 6.00 5 THAI NVDR 1.7% 4.78 5.00 6 NORTRUST NOMINEES LIMITED 1.5% 1,500 4.00 UOB KAY HIAN PRIVATE LIMITED 0.9% 7 1,000 8 CHASE NOMINEES LIMITED 0.9% 3.00 KRUNGSRI LONG-TERM DIVIDEND FUND 0.7% 9 2.00 500 ADTV = THB 132mn 10 MR. KEEREE KARNJANAPAS 0.5% 1.00 TOTAL TOP 10 SHAREHOLDERS 85.1% - - TOTAL ISSUED SHARES (mn shares) 6,864,321,852 12-Oct-12 12-Oct-13 12-Oct-14 12-Oct-15 Section 1: Company Overview 5
Company Overview 3 Active Business Units BTS-related Media HISTORICAL OPERATING REVENUE (THB mn) REVENUE CONTRIB. GROSS PROFIT CONTRIB. This business unit proved to be the most resilient 5 YRS CAGR: +14.2% performer in our business portfolio. The Company 61% 84% 2014/15 2014/15 1,805 1,813 1,679 possess exclusive rights to manage advertising space 1,422 on BTS SkyTrain Network, which expires in 2029 and 1,143 86% 95% 934 has right of refusal for Core Network and new 2015/16 2015/16 extension lines that BTS secures post 2029. Altogether, we manage advertising space across 30 stations & all BTS trains. BTS-related Media has one of the highest viewer exposure in OOH Media with an 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 average of 720,155 viewers per day in 2015/16. Office Building Media 45 YRS CAGR: +21.6% We initiated this business unit back in 2009 by 5% 7% 2014/15 2014/15 acquiring POV with 41 grade A buildings in the 201 portfolio. Today, we have expanded our media across 163 146 143 10% 9% 135 office buildings with approximately 660,000 2015/16 2015/16 viewers per day. Moreover, VGI has tapped into 79 76 condominium network through ARTISTA covering more than 219 condominiums making us the largest media company to provide advertising across 354 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 buildings with over 1,640 digital screens. Other Media 4 YRS CAGR: +133.6% 1% -2% 42 2014/15 2014/15 Through our connection with media agencies, the 29 26 Company became the sales agent for several mega 22 2% -3% LED screens both domestically and internationally. 2015/16 2015/16 1 Moreover, the Company expanded the footprint in OOH including outdoor and aviation media 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 throughout several acquisitions. Modern Trade Media (discontinued) 33% 11% 2014/15 2014/15 Previously, the Company has exclusive rights to 1,295 1,250 969 manage advertising space in Tesco Lotus and Big C. 754 391 50 However, we decided to terminate this business unit 2% -1% 2015/16 2015/16 in 4Q 14/15. Hence, this business unit will no longer 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 generate revenue in 2Q15/16 and onwards. Section 1: Company Overview 6
Agenda Section 1 4 Company Overview Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 28 Financial Information & 2015/16 Performance Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 7
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