PIONEERING SOLUTIONS FOR TOMORROW VGI INVESTOR PRESENTATION MAR 2019
EVOLUTION FROM TRADITIONAL ADVERTISING TO “O2O SOLUTIONS” BANGKOK CENTRIC NATIONWIDE NETWORK 2015 1999 2009 2015 2015 O2O SOLUTIONS 2015 2017 2018 2019 2019
WHAT WE DO ADVERTISING PAYMENT LOGISTICS
ADVERTISING NO.2 OUTDOOR NO.1 TRANSIT NO.1 BUILDING >500,000 >800,000 >12,000,000 >490 1,359 30 208 >2,000 >6,000 NO.1 ACTIVATION NO.3 AIRPORT NO.1 DELIVERY >1,385,000 >110,000 >1,200,000 14 >6,000 >20,000 50 >950 >1,000
PAYMENT 12mn Cards 1.2mn Members 4.0mn Members 5.5mn 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 30mn Riders WHAT CAN THESE TELL US? VGI CORPORATE DATA Car Insurance Buyers 12mn Cards 5.5mn Users 100K Users : Credit Card Comparisons : 1.2mn Members 4mn Members Airport Wifi 18mn : Reachable PARTNERSHIP DATA Unionpay Card Data : Kerry 7mn Travelers 6mn Sellers 1 : 1 On boarding process to be Chinese audience database of Rabbit
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 FY Target +15.1% YTD FY +72.7% Target YTD >200 brand partners and 7,000 readers
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 125X KERRY PARCEL DELIVERED DAY 1,000,000 C2C C2C 70% 67% C2C 500,000 65% C2C C2C C2C 50% 50% 50% 75,000 B2C B2C B2C B2C B2C 40% 40% 30% 31% 26% 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 ANYMING 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 • • • • • • • • • Verisign Tuna 4 SRPB Sign Work Ads Cuisine • BNK 48 • MSD BNKP • ASL Golink Maxview APL 5 • 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 –
FINANCIAL
VGI FINANCIAL PERFORMANCE 2014/15 2015/16 2016/17 2017/18 YoY (%) 1 (restated) • INCOME STATEMENT (THB mn) • • • BALANCE SHEET (THB mn) ADVERTISING THB 3,558mn (90.4%) TRANSIT OUTDOOR CASH FLOW (THB mn) OFFICE & OTHER PER SHARE DATA (THB/ share) THB 3,936mn DIGITAL SERVICES KEY RATIOS
3Q 2018/19 HIGHLIGHTS FINANCIAL PERFORMANCE KEY OPERATION METRICS Revenue Office +50.2% 179 Outdoor Net Profit 2,000 +70.8% 35 Offline Payment Profitability 10.3 52.7% 40.5% 5.1 21.1% Micro Loan 1,633 Logistics >150,000
3Q 2018/19 OVERVIEW PROFIT AND LOSS STATEMENT 2Q 2018/19 QoQ (%) THB (mn) 3Q 2017/18 3Q 2018/19 YoY (%) 3Q 2018/19 REVENUE CONTRIBUTION KEY FACTORS OUTDOOR OFFICE & OTHER • • THB • 1,469mn TRANSIT DIGITAL SERVICES •
REVENUE BY BUSINESS UNITS TRANSIT MEDIA REVENUE (THB mn) OFFICE & OTHER MEDIA REVENUE (THB mn) +5.0% YoY +18.0% YoY OUTDOOR MEDIA REVENUE (THB mn) DIGITAL SERVICES REVENUE (THB mn) +11.7% YoY +498.9% YoY
BALANCE SHEET & CASH FLOW ASSETS BREAKDOWN (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) 20,875 20,875 Current liabilities 13.3% Non-current liabilities 7.9% Current assets 9,632 9,632 Equity 21.3% 78.8% Non-current assets 17.2% 61.5% IB Debt D/E ratio CASH FLOW (THB mn) CAPEX (THB mn) Actual Target 9M18/19 FY 18/19 200 Total VGI 400 Total VGI, MACO & Rabbit 328 1,000
2019/20 VGI TARGETS AND CAPEX REVENUE EBITDA margin NPAT margin CAPEX 6,200mn 40 – 45% 20 - 25% 700mn
APPENDIX
ADVERTISING: TRANSIT MEDIA OUR PRODUCTS TRANSIT MEDIA PROFILE RIGHTS & NETWORK I. TRAIN • • EFFECTIVE PERIOD • II. STATION • CONCESSION FEE (PAYABLE TO BTSC & BMA) • • NPAT margin CAPEX KEY FINANCIAL HILIGHTS 20 - 25% 700mn 2017/18 8 YRS CAGR: +12.4% Revenue Contribution III. MERCHANDISING & OTHER 57.5%
ADVERTISING: TRANSIT MEDIA EXISTING LINES AS OF 2018/19 EXISTING LINES BY OPERATOR TOTAL DISTANCE: 121.6KM NO. OF ROUTE DISTANCE OPERATING STATION 48.9 44.2 28.5 DARK GREEN (CORE) LIGHT GREEN 43 35 8 (CORE) TOTAL AVG. WEEKDAY RIDERSHIP: 1,191,390 LIGHT GREEN (EXTENSION) 743,223 378,167 70,000 DARK GREEN (EXTENSION) LIGHT GREEN (EXTENSION) DARK GREEN (EXTENSION) NO. OF ROUTE DISTANCE OPERATING STATION BLUE PURPLE NO. OF ROUTE DISTANCE OPERATING STATION AIRPORT LINK (RED LINE)
ADVERTISING: TRANSIT MEDIA ADDITIONAL LINES IN 2021/22 FUTURE LINES IN 2021/22 TOTAL DISTANCE: 250.1KM BTS’S NO. OF ROUTE DISTANCE OPERATING FOCUS STATION 124.7 125.4 GREEN (NORTHERN) PINK TOTAL STATION: 104 YELLOW 104 67 GREEN (WESTERN) LRT GREY (I) NO. OF OTHER ROUTE DISTANCE OPERATING STATION BLUE BLUE BLUE DARK RED DARK RED LIGHT RED LIGHT RED PURPLE (SOUTHERN)
ADVERTISING: TRANSIT MEDIA TOTAL OF 836 TRAINS CAPACITY TOTAL OF 147 STATIONS CAPACITY 2018/19 2022/23 E 2018/19 2022/23 E CORE + EXTENSION 208 236 CORE + EXTENSION 30 34 GREEN (SOUTHERN) NONE 60 GREEN (SOUTHERN) NONE 9 GREEN (NORTHERN) NONE 84 GREEN (NORTHERN) NONE 16 PINK NONE 168 PINK NONE 30 YELLOW NONE 120 YELLOW NONE 23 GREEN (WESTERN) NONE 32 GREEN (WESTERN) NONE 6 LRT NONE 64 LRT NONE 14 GREY (PHASE I) NONE 72 GREY (PHASE I) NONE 15 TOTAL 208 836 TOTAL 30 147 4.0X EXPECTED INCREASE IN BTS TRAIN CAPACITY 4.9X EXPECTED INCREASE IN BTS STATION CAPACITY +4.0x +4.9x Under Under Negotiation Negotiation 168 carriages 39 stations Secured Secured 668 carriages 108 stations
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