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

PIONEERING SOLUTIONS FOR TOMORROW

VGI INVESTOR PRESENTATION JUNE 2019

DISCLAIMER

EVOLUTION FROM TRADITIONAL ADVERTISING TO “O2O SOLUTIONS”

1999 2009 2012 2015 2015 2017 2018 2019 2015

BANGKOK CENTRIC NATIONWIDE NETWORK O2O SOLUTIONS

2019

WHAT WE DO

ADVERTISING PAYMENT LOGISTICS

ADVERTISING

NO.2 AIRPORT NO.1 ACTIVATION

>1,385,000 14 1 > 360 51 70 >110,000 >6,000 >1,000 >1,200,000 >1,200 >800

NO.1 OUTDOOR

>740,000 30 208 >20,000 >2,000 >1,000

NO.1 TRANSIT NO.1 BUILDING

>980,000 180 317 >2,100 >1,100,000 >20,000

NO.1 DELIVERY

PAYMENT

12mn Cards 4.2mn Members 1.2mn Members 5.9mn Users 100k Users

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 5.9mn Users 4.3mn Members

18.5mn Reachable

13mn Receipts and 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 36mn Riders Chinese audience

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 PAYMENT

+23.2% YTD +83.0% YTD

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

KERRY PARCEL SHOP KERRY TRUCK

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 ANYMIND 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

TRANSFORMING MARKETING LANDSCAPE 100% Bangkok Takeover

BTS, Bus, Digital &Static Billboards, Buildings, Airports

POWERFUL CONSOLIDATED OOH NETWORK

70% Nationwide Coverage

Digital & Static Billboards,Malls, Kerry Trucks, Airports

UNIQUE MARKETING ENGAGEMENT Awareness Engagement & Loyalty Retail VGI Rabbit partners SPI Payment Logistics FLEXIBLE TRANSACTION PLATFORMS

Rabbit Services Kerry Services Direct to Consumer Music Sport

DATA AND DATA MANAGEMENT PLATFORM Retarget Conversion O2O SOLUTIONS

COLLABORATION HORIZON

DELIVER OPTIMUM VALUE OF OOH NETWORK CENTRALISING FOR COST EFFICIENCY EXPAND OOH MEDIA AND EXPLORE NEW MARKETING CHANNELS

• SHORT TERM

MEDIUM TERM LONG TERM

PARTNERSHIP WITH I-CLICK INTERACTIVE ASIA GROUP

TRANSACTION SUMMARY

Established the JVCo namely “V-Click Technology Co., Ltd.” % of holding Registered capital: Source of fund:

SHAREHOLDING STRUCTURE RATIONALE AND SYNERGIES OF THE JOINT VENTURE

• China Solutions:
• O2O Solutions:
• Mobile Application:

POTENTIAL PARTNERS

2016 2017 2018

I-CLICK AT A GLANCE

HISTORICAL REVENUE OF I-CLICK (USD mn) I-CLICK’S SHOWCASE

87% 126% 11.9 X

Data Technology Media

Advertisers & Marketers Trading Desks Multinational Customer Coverage 2,500+ Customers Chinese Consumer Dataset ~780mn

ACQUISITION OF 25.0% IN ADS CHAO PHRAYA COMPANY LIMITED

TRANSACTION SUMMARY RATIONALE

% of investment Total shares acquisition Total investment VGI General Mandate

• PRE SHAREHOLDING STRUCTURE

POST SHAREHOLDING STRUCTURE

ADS CHAO PHRAYA AT A GLANCE

2016 2017 9M2018

HISTORICAL REVENUE OF ACP (THB mn)

• NO. OF PIERS
• NO. OF BOATS

22 26 30 60

• NO. OF BILLBOARDS

>225 >150 80

FINANCIAL

VGI FINANCIAL PERFORMANCE

2015/16 (restated)

1

2016/17 2017/18 2018/19 YoY (%) INCOME STATEMENT (THB mn) BALANCE SHEET (THB mn) CASH FLOW (THB mn) PER SHARE DATA (THB/ share) KEY RATIOS

• ADVERTISING

THB 3,847mn (74.6%) TRANSIT DIGITAL SERVICES3 OFFICE & OTHER OUTDOOR

THB 5,158mn

2018/19 HIGHLIGHTS

FINANCIAL PERFORMANCE KEY OPERATION METRICS Profitability 55.7% 40.9% 21.4% Offline Payment 11.0 Online Payment 5.5 Logistics >200,000 Revenue +31.0% Net Profit +30.1% Office 180 1,358 Outdoor >2,000 35

2018/19 OVERVIEW

THB (mn) 2017/18 2018/19 YoY (%) PROFIT AND LOSS STATEMENT 2018/19 REVENUE CONTRIBUTION KEY FACTORS

• ADVERTISING

THB 3,847mn (74.6%)

TRANSIT DIGITAL SERVICES* OFFICE & OTHER OUTDOOR

THB 5,158mn

REVENUE BY BUSINESS UNITS

TRANSIT MEDIA REVENUE (THB mn)

+0.8% YoY +4.1% YoY

OFFICE & OTHER MEDIA REVENUE (THB mn)

+22.4% YoY +6.9% YoY

REVENUE BY BUSINESS UNITS

OUTDOOR MEDIA REVENUE (THB mn) DIGITAL SERVICES REVENUE (THB mn)

+246.8% YoY 12.6% YoY

• 20.0% YoY

+290.9% YoY

BALANCE SHEET & CASHFLOW

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

Current assets IB Debt D/E ratio Equity Non-current liabilities Current liabilities 61.5% 17.2% 21.3% 72.5% 7.1% 20.4% 22,687 9,632 Actual Target 2018/19 2018/19 Total VGI Total 9,632 22,687 38.5% 61.5% 23.5% 76.5% Non-current assets

CASH FLOW (THB mn)

2019/20 VGI TARGETS AND CAPEX REVENUE 6,000 - 6,200mn EBITDA margin 40 – 45% NPAT margin 20 - 25% CAPEX 700mn

APPENDIX

SHARE AND DIVIDEND INFORMATION

SHARE INFORMATION (AS OF 28 JUNE 2019)

SHARE PRICE MOVEMENT (AS OF 28 JUNE 2019)

DIVIDEND INFORMATION

• Payout Ratio

9.00 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

12-Oct-12 12-Oct-13 12-Oct-14 12-Oct-15 12-Oct-16 12-Oct-17 12-Oct-18

VGI TURNOVER (RHS) SET Index (rebased) VGI TB ADTV = THB 122mn

ADVERTISING: TRANSIT MEDIA

TRANSIT MEDIA PROFILE OUR PRODUCTS

floods Red shirt Morning Period Yellow shirt Royal cremation

KEY FINANCIAL HILIGHTS

45.6%

NPAT margin 20 - 25% CAPEX 700mn

• No. of location

Static Media Digital Media Viewer reach Merchandising space

• I. TRAIN
• II. STATION
• III. MERCHANDISING & OTHER
• RIGHTS & NETWORK
• EFFECTIVE PERIOD
• CONCESSION FEE (PAYABLE TO BTSC & BMA)
• 9 YRS CAGR: +11.4%

2018/19 Revenue Contribution

coup d’etat Shutdown BKK

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 741,056 371,447 80,000 TOTAL AVG. WEEKDAY RIDERSHIP: 1,192,503 TOTAL STATION: 86

LINE ROUTE DISTANCE

• NO. OF

STATION BLUE PURPLE LINE ROUTE DISTANCE

• NO. OF

STATION Core Network Extension Zone 1 Extension Zone 1 Extension Zone 2 (South) Extension Zone 2 (North) Gold Pink Yellow

Total 133.4 115

LINE ROUTE DISTANCE

• NO. OF

STATION AIRPORT LINK (RED LINE) OPERATING Under Construction

ADVERTISING: TRANSIT MEDIA

ADDITIONAL OF RAIL MASS TRANSIT LINES 81.2KM TARGETED LINES IN 2023/24

81.2 125.4 64 67 TOTAL DISTANCE: 206.6KM TOTAL STATION: 131

BTS TARGET ROUTE AUTHORITY DISTANCE (KM)

• NO. OF

STATION

GREEN EXT. (WESTERN) LRT GREY PHASE 1 ORANGE (E) ORANGE (W)

OTHER ROUTE AUTHORITY DISTANCE (KM)

• NO. OF

STATION

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 CARRIAGES 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 AND DIGITAL
• III. SYSTEM INTEGRATION AND DIGITAL SERVICES*

INTERNATIONAL NETWORK INVESTMENT & ACCOUNTING METHOD OUTDOOR MEDIA PROFILE KEY FINANCIAL HIGHLIGHT DOMESTIC NETWORK

2018/19 Revenue Contribution 24.3% Billboard Street Furniture and Digital

• MRT SBK line

MRT North-South line KTM ETS KLIA terminal 1&2

• 20.9%

1

ADVERTISING: OUTDOOR MEDIA

Existing Network Target 2019 LED SCREENS ON BTS’s COLUMNS 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

• No. of location

OFFICE BUILDING AND RESIDENTIAL MEDIA PROFILE OUR PRODUCTS

• RIGHTS & NETWORK
• LENGTH OF CONTRACT
• CONCESSION FEE

KEY FINANCIAL HIGHLIGHTS

• No. of location

286

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

9 YRS CAGR : +35.2% 2018/19 Revenue Contribution 8.6% 8.0%

ADVERTISING: OFFICE BUILDING & RESIDENTIAL MEDIA

• NEW OFFICE SUPPLY IN BANGKOK

9 2 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

769,659 sq.m.

ADVERTISING: AVIATION MEDIA

HISTORICAL NUMBER OF PASSENGERS AERO MEDIA’S PRODUCTS AVIATION MEDIA PROFILE

• No. of location

Digital Media Static Media Media on plane

RIGHTS & NETWORK

• INVESTMENT & ACCOUNTING METHOD
• LENGTH OF CONTRACT

14 YRS CAGR: +10.5%

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

ADVERTISING: ACTIVATION MEDIA

ACTIVATION MEDIA PROFILE RIGHT AND NETWORK

• INVESTMENT & ACCOUNTING METHOD

DEMO POWER SERVICES, PARTNERS AND BRANDS

• I. SERVICES
• II. BUSINESS PARTNERS
• III. BRANDS
• No. of location

Audience interaction Consumer journey

PAYMENT

OFFLINE PAYMENT: RABBIT CARD INVESTMENT & ACCOUNTING METHOD PAYMENT PRODUCTS

• I. RABBIT CARD
• II. RABBIT LINEPAY

Rabbit Cards Retailer Points Rabbit LinePay Users CURRENT VS FUTURE’S RIGHT AND NETWORK ONLINE PAYMENT: RABBIT LINEPAY INVESTMENT & ACCOUNTING METHOD CURRENT VS FUTURE’S RIGHT AND NETWORK

PAYMENT

ONLINE INSURANCE BROKER SERVICE PRODUCTS

• I. ONLINE INSURANCE BROKER

INVESTMENT & ACCOUNTING METHOD SERVICES

• MICRO LOAN THROUGH THE JOINT VENTURE WITH AEON

INVESTMENT & ACCOUNTING METHOD

• II. AEON RABBIT MEMBER CARD

Insurance companies in-services

SERVICES Outstanding loan

LOGISTICS

DELIVERY SERVICES PORTFOLIO SERVICES PRODUCTS INVESTMENT & ACCOUNTING METHOD SERVICES CHANNEL

• NETWORK

COMPANY STRCUTURE

VGI ADVERTISING PAYMENT LOGISTICS

ORGANISATION STRUCTURE