VGI Global Media Plc 2Q 2018/19 Analyst Presentation 9 November - - PowerPoint PPT Presentation

Prepared by Investor Relations Department VGI Global Media Plc

VGI Global Media Plc

2Q 2018/19 Analyst Presentation

9 November 2018 1

Prepared by Investor Relations Department VGI Global Media Plc 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

• n as promise or representation of the Company as to the future.

Disclaimer

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Prepared by Investor Relations Department VGI Global Media Plc

Section 1 2Q 2018/19 Financial Performance Section 2 Key Business and Strategic Update

Agenda

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2Q 2018/19 Highlights

4 Section 1: 2Q 2018/19 Financial Performance

Revenue of THB 1,208mn

+23.5% YoY

Offline Payment

9.8mn cards

Online Payment

4.5mn Rabbit LinePay users

Micro Loan Services THB 1,529mn Logistics

>70,000 smart samplings

Profitability

55.5% Gross profit margin 41.5% EBITDA margin 21.5% Net profit margin

Net Profit of THB 260mn

+28.8% YoY

FINANCIAL PERFORMANCE KEY OPERATION METRICS

Office

177 office buildings 1,374 digital screens

Outdoor

2,400 billboards 35 digital billboards

AD

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PROFIT AND LOSS STATEMENT

2Q 2018/19 Overview

5 Section 1: 2Q 2018/19 Financial Performance

• Revenue increase by 23.5% YoY mainly driven by 1)encouraging growth in

the Out-of-Home media sector and 2) the consolidation of Trans.Ad Group

• Gross profit increased by 13.5% YoY, while its margin decreased to 55.5%

due to the higher cost structures from Trans.Ad Group

• EBITDA increased by 12.9% YoY as a result of the continuously positive

performance as well as the Group’s strategic expansion.

• Net profit increased by 28.8% YoY due to robust performance and a

recognition of a share of profit from Kerry Express

1As shown in financial statement, excluding minority interest.

KEY FACTORS

(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 Profit1 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%

Note: Trans.Ad Group comprises of 1) Trans.Ad Solutions Company Limited and 2) Roctec Technology Limited.

2Q 2018/19 REVENUE CONTRIBUTION TRANSIT THB 535mn 44.3% 24.7% DIGITAL SERVICES THB 299mn 9.0% OFFICE & OTHER THB 109mn 22.0% OUTDOOR THB 266mn THB 1,208mn

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232 265 291 284 266

2Q 3Q 4Q 1Q 2Q

TRANSIT MEDIA REVENUE (THB mn) OFFICE & OTHER MEDIA REVENUE (THB mn)

Revenue by Business Units

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

+14.4% YoY

87 84 110 80 299

2Q 3Q 4Q 1Q 2Q

+243.6% YoY

576 548 618 620 535

2Q 3Q 4Q 1Q 2Q

• 7.2% YoY

2017/18 2018/19

83 81 108 93 109

2Q 3Q 4Q 1Q 2Q

+31.7% YoY

Higher utilisation rate as well as price increases. 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. A decline mainly due to expiry O2O contracts (normal budget-end period). Expected normalised booking levels in remaining quarters. 2017/18 2018/19 2017/18 2018/19 2017/18 2018/19

Section 1: 2Q 2018/19 Financial Performance

Prepared by Investor Relations Department VGI Global Media Plc

Balance Sheet & Cash Flow

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

5,927 12,541 3,705 7,582 31 MAR 18 30 SEP 18 37.7% 62.3% Non-current assets Current assets 38.5% 61.5% 20,123 9,632

Actual Target

1H 18/19 FY 18/19 Transit Media 72 300 Office & Others Media 26 100 Total VGI 98 400 Outdoor Media 40 450 Digital Services 23 150 Total VGI, MACO & Rabbit 161 1,000

CAPEX (THB mn)

IB Debt THB 1,763mn THB 1,629mn D/E ratio 0.3x 0.1x

Equity 5,926 16,088 1,658 1,647 2,048 2,388 31 MAR 18 30 SEP 18 Non-current liabilities Current liabilities 61.5% 17.2% 21.3% 79.9% 8.2% 11.9% 20,123 9,632

*After tax and net tax refund (THB -153mn) and interest expense (THB -33mn) **Included translation adjustment of (THB 2.3mn)

757

Beginning cash (Restated) (31/3/2018) CFO CFI CFF Ending cash (30/9/2018)

547* 8,657** (7,329)

CFI CFF

2,632

Cash paid for investment in Kerry Express

• f THB 5,016mn

Cash received from proceeds from VGI-W1 of THB 8,615mn

Section 1: 2Q 2018/19 Financial Performance

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Section 1 2Q 2018/19 Financial Performance Section 2 Key Business and Strategic Update

Agenda

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Advertising

Empowering Digital Strategy through Strategic Partnership

9 Section 2: Key Business and Strategic TRANS.AD GROUP’S BUSINESS OVERVIEW and STRUCTURE

81.65% 89%

100%

MACO Eye on Ads Trans.Ad Roctec

Multimedia display systems provider Provider of multimedia & communications systems, system integrations and total network infrastructure

Trans.Ad Group

LCD in Stations and Buildings Platform Screen Door Control System & Media Management Passenger Information

LED outdoor

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Advertising

Empowering Digital Strategy through Strategic Partnership

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Hong Kong MTR Hong Kong International Airport Singapore SMTR

TRANS.AD GROUP’S KEY CLIENTS Section 2: Key Business and Strategic ENTERPRISE PORTFOLIOS SAMPLE GOVERNMENT AND EDUCATIONAL PORTFOLIOS SAMPLE

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Advertising

Digital Transformation Project

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• No. of screen: 5 screens

Where: Chong Non Si When: 3Q 2018/19

• No. of screen: 35 screens

Where: Chong Nonsi, Phrom Phong, Sala Dang and Asok When: 2Q 2019/20 PHASE 1 PHASE 2

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Logistics

Delivering Marketing Solutions Synergy through Logistics Platform

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Retarget high prospect customers online Locate the right target audience and drive product awareness with 100% viewability Encourage trial at the perfect at home environment Obtain product user feedback for actionable marketing insights

SMART SAMPLING THROUGH KERRY EXPRESS Section 2: Key Business and Strategic

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Payment

Revamping ‘More-tap’ to the ‘Wallet’ page in LINE Application

• More steps to reach
• Less features
• One click to ‘Wallet’ feature in LINE app.
• Add BTS function to provide a smarter and easier journey on BTS.

So easy! USER INTERFACE – OLD VERSION USER INTERFACE – NEW VERSION Section 2: Key Business and Strategic 13

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2.9 3.1 3.2 3.4 3.8 4.2 4.5 5.3

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Mar-19

Payment

Accelerate Growth in User Base

14 Rabbit Card circulation reached 9.8mn cards. Nearly achieving its full-year target of 10.5mn cards. Rabbit LinePay serves more than 4.5mn users, an increase of 55.2% in less than 6 months. 9.0 9.1 9.2 9.3 9.4 9.6 9.8 10.5

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Mar-19

FY Target FY Target Section 2: Key Business and Strategic RABBIT CARD RABBIT LINEPAY

+9.3% +55.2%

partnership with AIS Single e-wallet with BTS and Rabbit Card