VGI Global Media Plc 2Q 2018/19 Analyst Presentation 9 November 2018 Prepared by Investor Relations Department 1 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 2Q 2018/19 Financial Performance Section 2 Key Business and Strategic Update Prepared by Investor Relations Department 3 VGI Global Media Plc
2Q 2018/19 Highlights FINANCIAL PERFORMANCE Profitability Revenue of THB 1,208mn +23.5% YoY 55.5% Gross profit margin 41.5% EBITDA margin Net Profit of THB 260mn +28.8% YoY 21.5% Net profit margin KEY OPERATION METRICS Office Offline Payment AD 177 office buildings 9.8 mn cards 1,374 digital screens Online Payment 4.5 mn Rabbit LinePay users Outdoor 2,400 billboards Micro Loan Services 35 digital billboards THB 1,529 mn Logistics >70,000 smart samplings Prepared by Investor Relations Department 4 Section 1: 2Q 2018/19 Financial Performance VGI Global Media Plc
2Q 2018/19 Overview PROFIT AND LOSS STATEMENT (THB mn) 2Q 2017/18 1Q 2018/19 2Q 2018/19 QoQ (%) YoY (%) Operating revenue 978 1,077 1,208 12.2% 23.5% Cost of sales 387 392 537 37.1% 38.7% Gross profit 591 685 670 -2.1% 13.5% EBITDA 444 507 501 -1.2% 12.9% EBIT 333 384 380 -1.1% 14.1% Interest expenses 25 15 18 18.6% -27.8% Taxes 83 82 76 -7.3% -8.6% Net Profit 1 202 261 260 -0.4% 28.8% Gross profit margin 60.4% 63.6% 55.5% EBITDA margin 45.4% 47.1% 41.5% Net profit margin 20.6% 24.3% 21.5% 1 As shown in financial statement, excluding minority interest. 2Q 2018/19 REVENUE CONTRIBUTION KEY FACTORS • TRANSIT OUTDOOR Revenue increase by 23.5% YoY mainly driven by 1)encouraging growth in THB 535mn THB 266mn the Out-of-Home media sector and 2) the consolidation of Trans.Ad Group 44.3% 22.0% • Gross profit increased by 13.5% YoY, while its margin decreased to 55.5% due to the higher cost structures from Trans.Ad Group THB OFFICE & OTHER • EBITDA increased by 12.9% YoY as a result of the continuously positive 1,208mn THB 109mn performance as well as the Group’s strategic expansion. 9.0% • Net profit increased by 28.8% YoY due to robust performance and a DIGITAL SERVICES recognition of a share of profit from Kerry Express THB 299mn 24.7% Note: Trans.Ad Group comprises of 1) Trans.Ad Solutions Company Limited and 2) Roctec Technology Limited. Prepared by Investor Relations Department 5 Section 1: 2Q 2018/19 Financial Performance VGI Global Media Plc
Revenue by Business Units TRANSIT MEDIA REVENUE (THB mn) OFFICE & OTHER MEDIA REVENUE (THB mn) A decline mainly due to expiry O2O contracts (normal budget-end Higher utilisation rate as well as price increases. period). Expected normalised booking levels in remaining quarters. -7.2% YoY +31.7% YoY 618 620 576 548 535 108 109 93 83 81 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 2017/18 2018/19 2017/18 2018/19 OUTDOOR MEDIA REVENUE (THB mn) DIGITAL SERVICES REVENUE (THB mn) Driven by the ongoing revenue recognition of 35 digital screens. Driven by the consolidation of Trans.Ad Group by MACO and the increase in project management fees of Rabbit Group. +14.4% YoY +243.6% YoY 291 284 265 266 232 299 110 87 84 80 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 2017/18 2018/19 2017/18 2018/19 Prepared by Investor Relations Department 6 Section 1: 2Q 2018/19 Financial Performance VGI Global Media Plc
Balance Sheet & Cash Flow ASSETS BREAKDOWN (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) 20,123 20,123 11.9% Current liabilities 2,388 8.2% Non-current liabilities 1,647 Current assets 37.7% 7,582 9,632 9,632 2,048 21.3% 16,088 79.9% Equity 3,705 38.5% 1,658 17.2% 62.3% Non-current 12,541 assets 5,926 5,927 61.5% 61.5% 31 MAR 18 30 SEP 18 31 MAR 18 30 SEP 18 IB Debt THB 1,763mn THB 1,629mn D/E ratio 0.3x 0.1x CASH FLOW (THB mn) CAPEX (THB mn) Cash paid for investment in Kerry Express Actual Target of THB 5,016mn Cash received from proceeds from 1H 18/19 FY 18/19 VGI-W1 of THB 8,615mn 72 Transit Media 300 8,657** 547* (7,329) 26 Office & Others Media 100 2,632 98 Total VGI 400 757 Outdoor Media 40 450 23 CFI Digital Services 150 Beginning cash CFO CFI CFF Ending cash CFF (Restated) (30/9/2018) Total VGI, MACO & Rabbit 161 1,000 (31/3/2018) *After tax and net tax refund (THB -153mn) and interest expense (THB -33mn) **Included translation adjustment of (THB 2.3mn) Prepared by Investor Relations Department 7 Section 1: 2Q 2018/19 Financial Performance VGI Global Media Plc
Agenda Section 1 2Q 2018/19 Financial Performance Section 2 Key Business and Strategic Update Prepared by Investor Relations Department 8 VGI Global Media Plc
Advertising Empowering Digital Strategy through Strategic Partnership TRANS.AD GROUP’S BUSINESS OVERVIEW and STRUCTURE Platform Screen Door MACO 100 % Eye on Ads LCD in Stations and Buildings Trans.Ad Group 81.65 % Multimedia display systems provider Trans.Ad 89 % Provider of multimedia & communications Roctec systems, system integrations and total network infrastructure Control System & Media Management LED outdoor Passenger Information Prepared by Investor Relations Department 9 Section 2: Key Business and Strategic VGI Global Media Plc
Advertising Empowering Digital Strategy through Strategic Partnership TRANS.AD GROUP’S KEY CLIENTS ENTERPRISE PORTFOLIOS SAMPLE GOVERNMENT AND EDUCATIONAL PORTFOLIOS SAMPLE Hong Kong MTR Hong Kong International Airport Singapore SMTR Prepared by Investor Relations Department 10 Section 2: Key Business and Strategic VGI Global Media Plc
Advertising Digital Transformation Project PHASE 1 PHASE 2 No. of screen: 5 screens No. of screen: 35 screens Where: Chong Non Si Where: Chong Nonsi, Phrom Phong, Sala Dang and Asok When: 3Q 2018/19 When: 2Q 2019/20 Prepared by Investor Relations Department 11 Section 2: Key Business and Strategic VGI Global Media Plc
Logistics Delivering Marketing Solutions Synergy through Logistics Platform SMART SAMPLING THROUGH KERRY EXPRESS Locate the right target audience and drive product awareness with 100% viewability Encourage trial at the Retarget high prospect perfect at home customers online environment Obtain product user feedback for actionable marketing insights Prepared by Investor Relations Department 12 Section 2: Key Business and Strategic VGI Global Media Plc
Payment Revamping ‘More - tap’ to the ‘Wallet’ page in LINE Application USER INTERFACE – OLD VERSION USER INTERFACE – NEW VERSION • More steps to reach • One click to ‘Wallet’ feature in LINE app. • Less features • Add BTS function to provide a smarter and easier journey on BTS. So easy! Prepared by Investor Relations Department 13 Section 2: Key Business and Strategic VGI Global Media Plc
Payment Accelerate Growth in User Base RABBIT CARD RABBIT LINEPAY Rabbit Card circulation reached 9.8mn cards. Nearly achieving Rabbit LinePay serves more than 4.5mn users, an increase of its full-year target of 10.5mn cards. 55.2% in less than 6 months. FY Target +9.3% FY +55.2% 10.5 Target 5.3 9.8 9.6 4.5 9.4 4.2 9.3 3.8 9.2 9.1 9.0 3.4 3.2 3.1 2.9 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Mar-19 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Mar-19 partnership with AIS Single e-wallet with BTS and Rabbit Card Prepared by Investor Relations Department 14 Section 2: Key Business and Strategic VGI Global Media Plc
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