VGI Global Media Plc TRANSITION TO DATA CENTRIC MEDIA HYPERMARKET Prepared by Investor Relations Department VGI Global Media Plc
Our traditional business “ The leading Bangkok-centric BTS-RELATED MEDIA advertising media company” This business unit proved to be the most resilient and profitable in our business portfolio. The Company has exclusive rights to manage advertising space on the BTS SkyTrain System, which expires in 2029 and has the right of first refusal for Core Network and new extension lines that BTS secures post 2029. 1,813 5-10% Organic Growth: 793 Catalyst: • 38km green line extension • 71km other line extension • 149 additional trains Revenue NPAT • 4X capacity OFFICE BUILDING & OTHER MEDIA We initiated this business unit back in 2009 by acquiring POV with 41 grade A buildings in their portfolio. Today, we are the premier player in this segment with a network of 142 office buildings. In 2015, we laterally expanded into residential buildings through Bangkok our investment in ARTISTA and its portfolio of 219 residential buildings. 30 BTS stations 52 BTS skytrains 142 office buildings 219 residential buildings 10-12% Organic Growth: 243 • Catalyst: Expand our coverage 30 beyond Bangkok • Expand our potential Revenue NPAT market by entering into new segments Prepared by Investor Relations Department 2 VGI Global Media Plc
Now presently a “Nationwide Integrated Media Platform” Achieved Achieved Achieved Achieved In process In process TRANSIT OFFICE OUTDOOR AVIATION RABBIT ACTIVATION TARGETED 61% 66% 37.42% 30% ONLINE market share in MACO in Aero Media & OFFLINE market share (Grade A&B bldg.) >720,000 >700,000 178 >115MN 5MN >360 viewers reached viewers reached mega viewers card holders exclusive stores daily daily billboards reached annually LONG TERM 142 389 342 90 275 Bangkok contracts end office buildings networking LCD screens offline brand clients 30 BTS station 2029 & 2042 billboards merchants 52 BTS skytrains 160 office buildings 4X 219 654 7,000 >30MN 219 residential buildings expected condominiums street furniture trolleys potential Nationwide 77 capacity e-wallet >1,200 MACO billboards members provinces >850 Multi Sign billboards nationwide Media in 13 airports 70% 70% 56% 57 33MN GP margin GP margin GP margin jet bridges online impressions PROVEN WINNER GROWTH SPRINGBOARD GROWTH PROSPECTS *Transit, Office and Outdoor information as of 1Q 2016/17. Aviation, Digital and Prepared by Investor Relations Department 3 Activation information as of 2015. VGI Global Media Plc
Acceleration of media capacity expansion within 1 year 2015/16: media capacity of THB 3.9bn 2016/17: media capacity of THB 7.3bn THB 2.2bn THB 2.3bn • • 30 BTS stations 30 BTS stations • • 208 carriages 208 carriages • • >4,000 static displays >4,000 static displays • • 2,029 digital screens >2,100 digital screens • • 8,800 sq.m. merchandising space 8,800 sq.m. merchandising space THB 0.9bn THB 0.5bn THB 0.6bn THB 1.7bn • • 135 office buildings 667 billboards and • 160 office buildings • 1,567 billboards and • 219 residential buildings networking billboards • 269 residential buildings networking billboards • • 200,000 sq.m. in chamchuri 555 street furniture • 200,000 sq.m. in chamchuri • 555 street furniture • square 131 displays in transit square • 131 displays in transit • sale agent for 15 clock tower • sale agent for 20 clock tower • 13 airports (32 LCDs) THB 1.0bn THB 0.3bn • 4,500 trolleys • sale agent for 49 aircraft • 3,000 salespeople • 360 exclusive stores • 275 brand clients • 77 provinces nationwide Transit Office Outdoor • 13 airports (342 LCDs) THB 1.4bn • 940 digital and static displays • 7,000 trolleys • Aviation sale agent for 49 aircrafts Digital Activation • Banner Advertising THB 0.3bn • Direct Targeted Marketing Prepared by Investor Relations Department 4 VGI Global Media Plc
Acceleration of audience reach per day within 1 year 2016/17: 2015/16: audience reach/day 1.9mn audience reach/day ~25mn • Active Line user 20,000,000 • Rabbit reward user Office , 700,000 Transit, 720,155 2,000,000 • Kerry Activation, 500,000 216,667 • Rabbit Daily Transit , 763,364 200,000 Aviation 315,068 Office, 828,925 Outdoor, 200,000 Outdoor, 212,000 Aviation, 333,973 Prepared by Investor Relations Department 5 VGI Global Media Plc
Rabbit transaction VGI’s BODs held on August 22, 2016 approved the acquisition of 90% in BSS from BTSC and 90% in BSSH from BTSG. The transactio n is subject to Extraordinary General Meeting on November 7, 2016. RATIONALE TRANSACTION SUMMARY • Total investment cost of THB 1,956.5mn to acquire both BSS and BSSH. Transforming from a pure media real estate agent to a “data -centric media hypermarket” by acquiring rabbit’s “big data” and “data 90% of BSS from BTSC analytics” Number of shares: 3,600,000 shares • Increase and diversify media inventory and audience reach Price: THB 184.39 per share • Gain market/customer insights and media inventory profiling for Investment cost: THB 663.8mn targeted advertisements for greater ROI on VGI’s media platform and increase salability of media inventory with value-added services 90% of BSSH from BTSG • Uncover new opportunities by leveraging rabbit’s data platform such Number of shares: 10,800,000 shares as new products, markets, audience, partners and etc. Price: THB 119.69 per share • Acquiring the ability to better measure efficacy of campaigns real- Investment cost: THB 1,292.7mn time Source of funds: Cash flows from operation and/or credit facilities support POST COMPANY STRUCTURE PRE COMPANY STRUCTURE • 41.0% Kanjanapas Family 60% BTSG BTSG BPS • 59.0% BTSG’s Minorities 97.5% 90% 10% BSS Bangkok Bank BTSC 97.5% 10% 90% BTSC BSS Bangkok Bank 51% 100% 25% 49% BSSH Rabbit Internet Ask Broker 10% 21.3% 90% VGI BSSH 51% 49% Ask Direct 80% Rabbit Pay 51% 25% 49% Rabbit Internet Ask Broker 51% ATS 49% 51% Ask Direct 60% BPS 80% Rabbit Pay 21.3% 51% • 0.5% Kanjanapas Family VGI Rabbit Line 50% • 27.2% Public 51% ATS Pay Prepared by Investor Relations Department Note: BTSG is BTS Group Holdings PCL. BTSC is Bangkok Mass Transit System PCL. BSSH is BSS Holdings Co., Ltd. BSS is Bangkok 6 Smartcard System Co., Ltd. VGI Global Media Plc
Rabbit Business Overview EXISTING NETWORK 2020 NETWORK TOTAL REVENUE REVENUE MODEL 2015/16 = THB 333mn • • Rabbit Card is a contactless smart Payment: 5.7mn >15mn card to make electronic payments. rabbit card holders rabbit card holders • transaction fee 48% • • It can be used across the mass 2.1mn >8mn • card revenue 160 transit network as well as at over active card holders active card holders 46% • interest from float • • 4,000 retail points. 1.5mn >6mn PAYMENT 107 • breakage active line pay users rabbit line pay users Rabbit Line Pay is an e-wallet. • • > 390 brand partners >600 brand partners Consumers can access the app for • • >4,000 retail points >10,000 retail points e-commerce and online payments, • • >1 million >4 million and soon extended to BTS SkyTrain 2014/15 2015/16 transactions/day transactions/day trips as well as brick and mortar • • >THB 50mn >THB 500mn retailers. settlement value/day settlement value/day Rev. cont. (%) Rev. (THB mn) • • • sponsorship fee 4.0mn >30mn Rabbit Daily is an online lifestyle 49% 54% publisher, providing social news • banner ads monthly visits monthly visits 163 and entertainment content and • • 126 access to access to MEDIA advertorials. 50 media formats 300 media formats Rabbit Media is an intelligent media solution, encompassing OOH media, online media and 2014/15 2015/16 data analytics. Rev. (THB mn) Rev. cont. (%) • • • profit sharing >THB 40mn >THB 200mn Rabbit Finance is a price from loan comparison website and licensed gross written insurance gross written insurance 3% broker for insurance products. In • SERVICES commission premiums/month premiums/month addition, rabbit offers micro loans from insurance 10* • • THB 800mn >THB 4bn through its partnership with brokerage outstanding loan in consumer loans/year AEON. • lead generation 2015/16 commission *included equity sharing from ATS which shown as Prepared by Investor Relations Department equity income in financial statement Rev. (THB mn) Rev. cont. (%) 7 VGI Global Media Plc
Data Centric Media Hypermarket ROI ACTIVATION TRANSIT OFFICE OUTDOOR AVIATION ONLINE MEDIA INVENTORY & AUDIENCE REACH PROGRAMMATIC HYBRID CAMPAIGN TARGETED MEDIA INNOVATIVE MEDIA DATA ANALYTICS DATA WAREHOUSE SERVICE ONLINE PAYMENT Travel data Financial data Spending data Location data Demographic Data Prepared by Investor Relations Department 8 VGI Global Media Plc
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