PIONEERING SOLUTIONS FOR TOMORROW VGI INVESTOR PRESENTATION MAR - - PowerPoint PPT Presentation

PIONEERING SOLUTIONS FOR TOMORROW

VGI INVESTOR PRESENTATION MAR 2019

EVOLUTION FROM TRADITIONAL ADVERTISING TO “O2O SOLUTIONS”

1999 2009 2015 2015 2015 2017 2018 2019 2015

BANGKOK CENTRIC NATIONWIDE NETWORK O2O SOLUTIONS

2019

WHAT WE DO

ADVERTISING PAYMENT LOGISTICS

ADVERTISING

NO.3 AIRPORT NO.1 ACTIVATION

>1,385,000 14 50 >950 >110,000 >6,000 >1,000 >12,000,000 >2,000

NO.2 OUTDOOR

>800,000 30 208 >6,000

NO.1 TRANSIT NO.1 BUILDING

>500,000 >490 1,359 >1,200,000 >20,000

NO.1 DELIVERY

PAYMENT

12mn Cards 5.5mn Users 4.0mn Members 1.2mn Members

LOGISTICS

2012 2013 2016 2018 2015 2006

VGI BUSINESS MODEL

O2O SOLUTIONS R&F CONVERSION IMPACT LOYALTY PAYMENT ENGAGEMENT DATA ENGAGEMENT CONVERSION AWARENESS ADVERTISING PAYMENT LOGISTICS

DATA

1.2mn Members 12mn Cards 5.5mn Users 4mn Members

18mn Reachable

6mn Sellers1 WHAT CAN THESE TELL US?

Car Insurance Buyers : Credit Card Comparisons : Airport Wifi : Unionpay Card Data : Kerry :

VGI CORPORATE DATA PARTNERSHIP DATA 100K Users 7mn Travelers 30mn Riders Chinese audience

1On boarding process to be

database of Rabbit

O2O SOLUTIONS

FACEBOOK WEB / APP

Asok

O2O SOLUTIONS

RETARGETING

RETARGET

AWARENESS

ADVERTISING

CONVERSION ENGAGEMENT+CONVERSION AWARENESS + ENGAGEMENT ENGAGEMENT + CONVERSION + REWARDS

O2O SOLUTIONS

AWARENESS

ADVERTISING

ENGAGEMENT + CONVERSION + LOYALTY

• 5. REWARD (LOYALTY)
• 2. ENGAGEMENT
• 3. ENGAGEMENT
• 4. CONVERSION
• 1. CONVERSION

PAYMENT

RETARGETING

RETARGET

FOCUSING ON THE HIGHEST GROWTH INDUSTRY

OOH AND ONLINE OUTPERFORMING INDUSTRY SPENDING

TRADITIONAL CAGR1 = 0.6% OOH CAGR1 = 8.8%

Increasing mobility Increasing urbanization Fragmentation of other broadcasting channels Improving of OOH Media (Digitalization, data, planning tools, mobile connection etc.)

ONLINE CAGR1 = 58.7% INDUSTRY CAGR1 = 3.3%

RIDE ON E-COMMERCE

4X

E-COMMERCE MARKET

Increasing Players In E-commerce Market Increasing Transaction Through Online Growth Opportunity For E-Payment & Logistics Increasing Demand On Goods Delivery And Other Services

STRATEGIC GROWTH DIRECTION AND UPDATE

ENGINES FOR GROWTH

B2C

• B2B

B2B, C2C, B2B2C DATA FOR O2O SOLUTIONS PAYMENT ADVERTISING LOGISTICS

5-6X ORGANIC GROWTH

ADVERTISING

5-6X

INCREASE IN TRAIN & STATION CAPACITY

INVENTORY EXPANSION

PREMIUM MASS OBJECTIVE AUDIENCE

HYBRID CONNECT

IMPACT/EXPERIENCE REACH/FREQUENCY

ADVERTISING IMMERSE ENHANCE MEDIA IMPACT DIVERSIFIED PRODUCT LINES INCREMENTAL INVENTORY

USE OF TECHNOLOGY

50% 118%

CONVERSION RATE* AD RECALL IMPACT / ENGAGEMENT

110% ADVERTISING VGI IMMERSE DRIVES AVG. 2X IMPACT AND ENGAGEMENT

BROADEN USER-BASE

USER SERVICE MERCHANT

• PAYMENT

2016 – 2018 ACHIEVEMENTS 2021 STRATEGIC EXPANSION TARGETING 10 MILLION MAU IN 2021

STRATEGIC PARTNERSHIP PROVED TO ACCELERATE GROWTH IN USER BASE

RABBIT CARD RABBIT LINEPAY

+15.1% YTD FY Target

PAYMENT

+72.7% YTD FY Target

>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

C2C 70% C2C 65% C2C 50% B2C 26% B2C 30% B2C 40% 40,000 C2C 67% C2C 50% C2C 50% B2C 31% B2C 40% 40,000 75,000 500,000 1,000,000 8,000

NEW PRODUCT DEVELOPMENT: SMART SAMPLING

AWARENESS TRIAL INSIGHT BRAND COMMUNICATE CUSTOMER FEEDBACK FOR ACTIONABLE INSIGHTS PRODUCT COMMUNICATE RETARGETING AUDIENCES LOGISTICS

O2O SHOWCASES

50% 1.7X 44% 50%

ONLINE STREAMING SERVICE

APPLICATION TELECOM MOBILE PHONE

SUCCESSFUL NEW PRODUCT LAUNCH FULL COVERAGE OF BKK AUDIENCES GAIN MORE SUBSCRIBER DRIVE PURCHASE LIKELIHOOD

1.5X 22% 100% 98% 20%

BUSINESS UPDATE

PARTNERSHIP WITH ANYMIND GROUP

TRANSACTION SUMMARY RATIONALE AND SYNERGIES OF THE JOINT VENTURE

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:

• SHAREHOLDING STRUCTURE

ANYMIND GROUP AT A GLANCE

HISTORICAL REVENUE OF ANYMING GROUP (USD mn) PUBLISHER PARTNERS

11MARKETS

ACROSS ASIA

ACQUISITION OF 18.6% IN PLAN B MEDIA PUBLIC COMPANY LIMITED (PLANB)

TRANSACTION SUMMARY

% of investment Total shares acquisition Acquisition price Total investment Source of fund:

PRE SHAREHOLDING STRUCTURE POST SHAREHOLDING STRUCTURE RATIONALE

• MANAGEMENT AND CONTROL

Golink

70%

Verisign

100%

SRPB

45%

Ads Cuisine

100%

MSD

100%

PLANB AT A GLANCE

• –

–

• –

3 4 6 5 2 1

Source : SETSMART as of 15 March 2019 Outdoor and Modern Trade Airport Engagement Marketing and Online International Business Verisign SRPB Ads Cuisine MSD Golink Maxview Mercy Plus The One Plus Triple Play WPS Bright Sky Tuna Sign Work BNK 48 BNKP ASL APL Digital Factory Plan B Eleven Plan B

OOH MEDIA OPERATES IN THAILAND IN VARIOUS SEGMENTS

FINANCIAL

VGI FINANCIAL PERFORMANCE

2014/15 2015/16 (restated)

1

2016/17 2017/18 YoY (%) INCOME STATEMENT (THB mn) BALANCE SHEET (THB mn) CASH FLOW (THB mn) PER SHARE DATA (THB/ share) KEY RATIOS

• TRANSIT

DIGITAL SERVICES OFFICE & OTHER OUTDOOR

THB 3,936mn

ADVERTISING THB 3,558mn (90.4%)

3Q 2018/19 HIGHLIGHTS

FINANCIAL PERFORMANCE KEY OPERATION METRICS Profitability 52.7% 40.5% 21.1% Offline Payment 10.3 5.1 Micro Loan 1,633 Logistics >150,000 Revenue +50.2% Net Profit +70.8% Office 179 Outdoor 2,000 35

3Q 2018/19 OVERVIEW

PROFIT AND LOSS STATEMENT

THB (mn) 3Q 2017/18 2Q 2018/19 3Q 2018/19 QoQ (%) YoY (%)

3Q 2018/19 REVENUE CONTRIBUTION

TRANSIT DIGITAL SERVICES OFFICE & OTHER OUTDOOR

THB 1,469mn

KEY FACTORS

REVENUE BY BUSINESS UNITS

TRANSIT MEDIA REVENUE (THB mn)

+5.0% YoY

OUTDOOR MEDIA REVENUE (THB mn)

+11.7% YoY

OFFICE & OTHER MEDIA REVENUE (THB mn)

+498.9% YoY +18.0% YoY

DIGITAL SERVICES REVENUE (THB mn)

BALANCE SHEET & CASH FLOW

ASSETS BREAKDOWN (THB mn) CASH FLOW (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) CAPEX (THB mn)

Non-current assets Current assets IB Debt D/E ratio Equity Non-current liabilities Current liabilities 61.5% 17.2% 21.3% 78.8% 7.9% 13.3% 20,875 9,632 Actual Target 9M18/19 FY 18/19 Total VGI 200 400 Total VGI, MACO & Rabbit 328 1,000 9,632 20,875

2019/20 VGI TARGETS AND CAPEX REVENUE 6,200mn EBITDA margin 40 – 45% NPAT margin 20 - 25% CAPEX 700mn

APPENDIX

ADVERTISING: TRANSIT MEDIA

TRANSIT MEDIA PROFILE OUR PRODUCTS

KEY FINANCIAL HILIGHTS

57.5%

NPAT margin 20 - 25% CAPEX 700mn

• I. TRAIN
• II. STATION
• III. MERCHANDISING & OTHER
• RIGHTS & NETWORK
• EFFECTIVE PERIOD
• CONCESSION FEE (PAYABLE TO BTSC & BMA)
• 8 YRS CAGR: +12.4%

2017/18 Revenue Contribution

ADVERTISING: TRANSIT MEDIA

EXISTING LINES AS OF 2018/19 EXISTING LINES BY OPERATOR

43 35 8 48.9 44.2 28.5 TOTAL DISTANCE: 121.6KM 743,223 378,167 70,000 TOTAL AVG. WEEKDAY RIDERSHIP: 1,191,390

ROUTE DISTANCE

• NO. OF

STATION OPERATING DARK GREEN (CORE) LIGHT GREEN (CORE) LIGHT GREEN (EXTENSION) DARK GREEN (EXTENSION) LIGHT GREEN (EXTENSION) DARK GREEN (EXTENSION) ROUTE DISTANCE

• NO. OF

STATION OPERATING BLUE PURPLE

ROUTE DISTANCE

• NO. OF

STATION OPERATING

AIRPORT LINK (RED LINE)

ADVERTISING: TRANSIT MEDIA

ADDITIONAL LINES IN 2021/22 FUTURE LINES IN 2021/22

124.7 125.4 104 67 TOTAL DISTANCE: 250.1KM TOTAL STATION: 104

BTS’S FOCUS ROUTE DISTANCE

• NO. OF

STATION OPERATING GREEN (NORTHERN) PINK YELLOW GREEN (WESTERN) LRT GREY (I) OTHER ROUTE DISTANCE

• NO. OF

STATION OPERATING BLUE BLUE BLUE DARK RED DARK RED LIGHT RED LIGHT RED PURPLE (SOUTHERN)

ADVERTISING: TRANSIT MEDIA

4.0X EXPECTED INCREASE IN BTS TRAIN CAPACITY TOTAL OF 836 TRAINS CAPACITY TOTAL OF 147 STATIONS CAPACITY

2018/19 2022/23 E CORE + EXTENSION 208 236 GREEN (SOUTHERN) NONE 60 GREEN (NORTHERN) NONE 84 PINK NONE 168 YELLOW NONE 120 GREEN (WESTERN) NONE 32 LRT NONE 64 GREY (PHASE I) NONE 72 TOTAL 208 836 2018/19 2022/23 E CORE + EXTENSION 30 34 GREEN (SOUTHERN) NONE 9 GREEN (NORTHERN) NONE 16 PINK NONE 30 YELLOW NONE 23 GREEN (WESTERN) NONE 6 LRT NONE 14 GREY (PHASE I) NONE 15 TOTAL 30 147

4.9X EXPECTED INCREASE IN BTS STATION CAPACITY

Secured 668 carriages Under Negotiation 168 carriages

+4.0x

Secured 108 stations Under Negotiation 39 stations

+4.9x

ADVERTISING: OUTDOOR MEDIA

MACO’S PRODUCTS

• I. BILLBOARD
• II. STREET FURNITURE
• III. SYSTEM INTEGRATION AND DIGITAL SERVICES

INTERNATIONAL NETWORK INVESTMENT & ACCOUNTING METHOD OUTDOOR MEDIA PROFILE KEY FINANCIAL HIGHLIGHT DOMESTIC NETWORK 2017/18 Revenue Contribution

24.3% BKK & Vicinities Nationwide CBD LED LCD screen Street furniture

• MRT SBK line

KLIA terminal 1&2 MRT North-South line

ADVERTISING: OUTDOOR MEDIA

Existing Network Target 2018 LED SCREEN IN UPCOUNTRY (HATYAI PROVINCE) MEDIA IN MALAYSIA KEY GROWTH AND DEVELOPMENT 2.INTERNATIONAL MARKET EXPANSION 3.STRATEGIC PARTNERSHIP 1.DIGITISATION 4.ADAPTIVE MEDIA CAMPAIGN Multi-platform Big Data MACO VGI Multi Sign Co-Mass RABBIT Transad Roctec

ADVERTISING: OFFICE BUILDING & RESIDENTIAL MEDIA

OFFICE BUILDING AND RESIDENTIAL MEDIA PROFILE OUR PRODUCTS

• RIGHTS & NETWORK
• LENGTH OF CONTRACT
• CONCESSION FEE

KEY FINANCIAL HIGHLIGHTS

• I. MEDIA INSIDE ELEVATORS AND OFFICE BUILDING AREAS
• II. MEDIA INSIDE ELEVATORS AND RESIDENTIAL BUILDING AREAS

REVENUE CAGR (8 YRS) : 37.2% 2017/18 Revenue Contribution 8.6%

ADVERTISING: OFFICE BUILDING & RESIDENTIAL MEDIA

• NEW OFFICE SUPPLY IN BANGKOK

TO DOMINATE OFFICE BUILDING MARKET IN BANGKOK

WELL-POSITIONED TO SECURE PARTNER’S REMAINING CONDO CAPTURING ALL CONSUMER PROFILE INCOME AND GEOGRAPHIC

Office Building Residential TO BE CAPTURED

Potential buildings

Total 439 Buildings

ARTISTA’s network

583,700 sq.m.

ADVERTISING: AVIATION MEDIA

HISTORICAL NUMBER OF PASSENGERS AERO MEDIA’S PRODUCTS AVIATION MEDIA PROFILE RIGHTS & NETWORK

• INVESTMENT & ACCOUNTING METHOD
• LENGTH OF CONTRACT

13YRS CAGR: 10.7%

• I. LEDS SCREEN
• III. JET BRIDGES
• IV. TROLLEYS
• V. WEBSITE MANAGEMENT
• II. MEDIA ON PLANE

ADVERTISING: ACTIVATION MEDIA

ACTIVATION MEDIA PROFILE RIGHT AND NETWORK

• INVESTMENT & ACCOUNTING METHOD

Investment: 40.0% in Demo Power (Thailand) Accounting Method: Equity sharing DEMO POWER SERVICES, PARTNERS AND BRANDS

Non-exclusivity location: > 650 stores Exclusivity locations: > 360 stores

• II. BUSINESS PARTNERS
• III. BRANDS

UPSIDE: ADDITIONAL CONSUMER INTERACTION (PEOPLE/DAY)

15.0X increased >1,600,000

PAYMENT

OFFLINE PAYMENT: RABBIT CARD INVESTMENT & ACCOUNTING METHOD PAYMENT PRODUCTS

• I. RABBIT CARD
• II. RABBIT LINE PAY

Rabbit Cards Retailer Points Line Users Rabbit Line Pay Users Online Merchants CURRENT VS FUTURE’S RIGHT AND NETWORK ONLINE PAYMENT: RABBIT LINE PAY INVESTMENT & ACCOUNTING METHOD CURRENT VS FUTURE’S RIGHT AND NETWORK

PAYMENT

ONLINE INSURANCE BROKER SERVICE PRODUCTS

• I. ONLINE INSURANCE BROKER

INVESTMENT & ACCOUNTING METHOD CURRENT VS FUTURE’S SERVICE AND NETWORK

• MICRO LOAN THROUGH THE JOINT VENTURE WITH AEON

INVESTMENT & ACCOUNTING METHOD

• II. AEON RABBIT MEMBER CARD

Insurance companies in-services

LOGISTICS

DELIVERY SERVICES PORTFOLIO SERVICES PRODUCTS INVESTMENT & ACCOUNTING METHOD SERVICES CHANNEL

• NETWORK

COMPANY STRCUTURE

MEDIA PAYMENT LOGISTICS

ORGANISATION STRUCTURE