VGI Global Media Plc TRANSITION TO DATA CENTRIC MEDIA HYPERMARKET - - PowerPoint PPT Presentation

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VGI Global Media Plc TRANSITION TO DATA CENTRIC MEDIA HYPERMARKET - - PowerPoint PPT Presentation

May 28, 2023 388 likes •575 views

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

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SLIDE 1

VGI Global Media Plc

TRANSITION TO DATA CENTRIC MEDIA HYPERMARKET

Prepared by Investor Relations Department VGI Global Media Plc

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SLIDE 2

Our traditional business

2

“The leading Bangkok-centric advertising media company”

Prepared by Investor Relations Department VGI Global Media Plc Bangkok

 30 BTS stations  52 BTS skytrains  142 office buildings  219 residential buildings

BTS-RELATED MEDIA

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.

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

  • ur investment in ARTISTA and its portfolio of 219 residential buildings.

243 30

Revenue NPAT

10-12%

  • Expand our coverage

beyond Bangkok

  • Expand our potential

market by entering into new segments 1,813 793

Revenue NPAT

5-10%

  • 38km green line extension
  • 71km other line extension
  • 149 additional trains
  • 4X capacity

Organic Growth: Catalyst: Organic Growth: Catalyst:

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SLIDE 3

Now presently a “Nationwide Integrated Media Platform”

TRANSIT

*Transit, Office and Outdoor information as of 1Q 2016/17. Aviation, Digital and Activation information as of 2015.

3

Prepared by Investor Relations Department VGI Global Media Plc

OFFICE OUTDOOR AVIATION RABBIT

ACTIVATION

61%

market share

LONG TERM

contracts end 2029 & 2042

70%

GP margin

>720,000

viewers reached daily

4X

expected capacity

66%

market share

(Grade A&B bldg.)

142

  • ffice buildings

70%

GP margin

>700,000

viewers reached daily

219

condominiums

37.42%

in MACO

389

networking billboards

56%

GP margin

178

mega billboards

654

street furniture

TARGETED 275

brand clients

77

provinces nationwide

>360

exclusive stores

ONLINE & OFFLINE 5MN

card holders

90

  • ffline

merchants

>30MN

potential e-wallet members

33MN

  • nline

impressions

30%

in Aero Media

342

LCD screens

57

jet bridges

>115MN

viewers reached annually

7,000

trolleys

PROVEN WINNER GROWTH SPRINGBOARD

GROWTH PROSPECTS

In process In process

 Achieved  Achieved  Achieved  Achieved

Bangkok

 30 BTS station  52 BTS skytrains  160 office buildings  219 residential buildings

Nationwide

 >1,200 MACO billboards  >850 Multi Sign billboards  Media in 13 airports

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SLIDE 4

2015/16: media capacity of THB 3.9bn THB 2.2bn THB 0.5bn

  • 135 office buildings
  • 219 residential buildings
  • 200,000 sq.m. in chamchuri

square

  • sale agent for 15 clock tower
  • 667 billboards and

networking billboards

  • 555 street furniture
  • 131 displays in transit

THB 0.9bn THB 0.3bn

  • 30 BTS stations
  • 208 carriages
  • >4,000 static displays
  • 2,029 digital screens
  • 8,800 sq.m. merchandising space

Acceleration of media capacity expansion within 1 year

2016/17: media capacity of THB 7.3bn

  • 13 airports (32 LCDs)
  • 4,500 trolleys
  • sale agent for 49 aircraft

THB 1.7bn

  • 1,567 billboards and

networking billboards

  • 555 street furniture
  • 131 displays in transit
  • 30 BTS stations
  • 208 carriages
  • >4,000 static displays
  • >2,100 digital screens
  • 8,800 sq.m. merchandising space

THB 2.3bn THB 0.6bn

  • 160 office buildings
  • 269 residential buildings
  • 200,000 sq.m. in chamchuri

square

  • sale agent for 20 clock tower

THB 1.4bn

  • 13 airports (342 LCDs)
  • 940 digital and static displays
  • 7,000 trolleys
  • sale agent for 49 aircrafts

THB 1.0bn

  • 3,000 salespeople
  • 360 exclusive stores
  • 275 brand clients
  • 77 provinces nationwide

THB 0.3bn

  • Banner Advertising
  • Direct Targeted Marketing

Transit Office Outdoor Aviation Digital Activation

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Prepared by Investor Relations Department VGI Global Media Plc

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SLIDE 5

Acceleration of audience reach per day within 1 year

2015/16: audience reach/day 1.9mn 2016/17: audience reach/day ~25mn

Transit, 720,155 Office, 700,000 Outdoor, 200,000 Aviation 315,068 Transit, 763,364 Office, 828,925 Outdoor, 212,000 Aviation, 333,973 Activation,500,000

  • Active Line user

20,000,000

  • Rabbit reward user

2,000,000

  • Kerry

216,667

  • Rabbit Daily

200,000 5

Prepared by Investor Relations Department VGI Global Media Plc

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SLIDE 6

RATIONALE

Rabbit transaction

  • Transforming from a pure media real estate agent to a “data-centric

media hypermarket” by acquiring rabbit’s “big data” and “data analytics”

  • Increase and diversify media inventory and audience reach
  • Gain market/customer insights and media inventory profiling for

targeted advertisements for greater ROI on VGI’s media platform and increase salability of media inventory with value-added services

  • Uncover new opportunities by leveraging rabbit’s data platform such

as new products, markets, audience, partners and etc.

  • Acquiring the ability to better measure efficacy of campaigns real-

time

TRANSACTION SUMMARY

VGI’s BODs held on August 22, 2016 approved the acquisition of 90% in BSS from BTSC and 90% in BSSH from BTSG. The transaction is subject to Extraordinary General Meeting on November 7, 2016. Total investment cost of THB 1,956.5mn to acquire both BSS and BSSH. 90% of BSS from BTSC Number of shares: 3,600,000 shares Price: THB 184.39 per share Investment cost: THB 663.8mn 90% of BSSH from BTSG Number of shares: 10,800,000 shares Price: THB 119.69 per share Investment cost: THB 1,292.7mn Source of funds: Cash flows from operation and/or credit facilities support

PRE COMPANY STRUCTURE POST COMPANY STRUCTURE

100% 97.5% 90% 10% 21.3% 51% 60% 51% 25% 80% 49% 49% 51% 51%

BTSG VGI Bangkok Bank

  • 41.0% Kanjanapas Family
  • 59.0% BTSG’s Minorities

BSSH BTSC BSS ATS BPS Rabbit Internet Rabbit Pay Ask Broker Ask Direct

  • 0.5% Kanjanapas Family
  • 27.2% Public

Note: BTSG is BTS Group Holdings PCL. BTSC is Bangkok Mass Transit System PCL. BSSH is BSS Holdings Co., Ltd. BSS is Bangkok Smartcard System Co., Ltd.

6

Prepared by Investor Relations Department VGI Global Media Plc

BTSG VGI BTSC BSSH BSS ATS BPS Rabbit Internet Rabbit Pay Ask Broker Ask Direct

97.5% 21.3% 60% 90% 90% 25% 80% 51%

Bangkok Bank

10% 10% 49% 49% 51% 51%

Rabbit Line Pay

50%

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SLIDE 7

Rabbit Business Overview

PAYMENT Rabbit Card is a contactless smart card to make electronic payments. It can be used across the mass transit network as well as at over 4,000 retail points. Rabbit Line Pay is an e-wallet. Consumers can access the app for e-commerce and online payments, and soon extended to BTS SkyTrain trips as well as brick and mortar retailers.

TOTAL REVENUE

2015/16 = THB 333mn

EXISTING NETWORK

  • 5.7mn

rabbit card holders

  • 2.1mn

active card holders

  • 1.5mn

active line pay users

  • > 390 brand partners
  • >4,000 retail points
  • >1 million

transactions/day

  • >THB 50mn

settlement value/day

107 160

2014/15 2015/16 46% 48%

REVENUE MODEL

Payment:

  • transaction fee
  • card revenue
  • interest from float
  • breakage

2020 NETWORK

  • >15mn

rabbit card holders

  • >8mn

active card holders

  • >6mn

rabbit line pay users

  • >600 brand partners
  • >10,000 retail points
  • >4 million

transactions/day

  • >THB 500mn

settlement value/day SERVICES Rabbit Finance is a price comparison website and licensed broker for insurance products. In addition, rabbit offers micro loans through its partnership with AEON.

  • >THB 40mn

gross written insurance premiums/month

  • THB 800mn
  • utstanding loan
  • profit

sharing from loan

  • commission

from insurance brokerage

  • lead generation

commission

  • >THB 200mn

gross written insurance premiums/month

  • >THB 4bn

in consumer loans/year

3%

10*

2015/16

MEDIA Rabbit Daily is an online lifestyle publisher, providing social news and entertainment content and advertorials. Rabbit Media is an intelligent media solution, encompassing OOH media, online media and data analytics.

  • 4.0mn

monthly visits

  • access to

50 media formats

  • sponsorship fee
  • banner ads
  • >30mn

monthly visits

  • access to

300 media formats

49%

  • Rev. (THB mn)
  • Rev. cont. (%)
  • Rev. (THB mn)
  • Rev. cont. (%)
  • Rev. (THB mn)
  • Rev. cont. (%)

7

Prepared by Investor Relations Department VGI Global Media Plc

126 163

2014/15 2015/16 54%

*included equity sharing from ATS which shown as equity income in financial statement

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SLIDE 8

Data Centric Media Hypermarket

PAYMENT SERVICE ONLINE Demographic Data Location data Spending data Travel data Financial data

DATA WAREHOUSE

DATA ANALYTICS

PROGRAMMATIC HYBRID CAMPAIGN TARGETED MEDIA INNOVATIVE MEDIA

OFFICE OUTDOOR AVIATION ONLINE TRANSIT

MEDIA INVENTORY & AUDIENCE REACH ACTIVATION

ROI

8

Prepared by Investor Relations Department VGI Global Media Plc

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SLIDE 9
  • Expanding our media network domestically and

internationally

  • Broadening and deepening Rabbit’s database of consumer

behavior for increased advertising target-ability and media inventory salability through additional services and products

  • Leveraging rabbit’s data in order to provide

insight/interactive/innovative/targeted media products and services

  • Reduce manual intervention and optimise the data analytics

within the organisation in order to deliver higher profitability

VGI’s Five-Year Strategy 2016/17 – 2020/21

2020/21 GOALS Revenue of THB 8,200mn (20 - 25% CAGR) NPAT growth of 15 – 20% CAGR GROWTH PILLARS MEDIA PAYMENT SERVICES

  • Expand our offline

merchants network nationwide focusing on transit and retail segments

  • Expand our online

network through rabbit line pay

  • Offering different

services through data and ad platform

  • Enriching our data depth

for our member profile MEASUREMENTS

  • Rev. growth of 15 – 20% CAGR
  • 4X and 1.3X expected increase in BTS and Office media

capacity, respectively.

  • 15% revenue contribution from data driven media
  • 40 - 50% NPAT margin within data driven media business unit
  • Rev. growth of 40 - 50%

CAGR

  • >4mn transactions/day
  • >THB 500mn

settlement value/day

  • Rev. growth of 50 - 60%

CAGR

  • >THB 200mn first year

premiums (FYP)/month

  • THB 4bn in consumer

loans/year

E-commerce Peer 2 Peer Bill payment

2020/21 Revenue contribution 90% 3% 7% 9

Prepared by Investor Relations Department VGI Global Media Plc

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SLIDE 10

Appendix

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SLIDE 11

E-Payment: Online and Offline merchants

Cash-on-delivery (THB 1bn per month)

WALLET (THB 50K) PAYMENT GATEWAY (CREDIT CARD) OFFLINE MERCHANTS ONLINE MERCHANTS

11

Prepared by Investor Relations Department VGI Global Media Plc

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SLIDE 12

E-Payment: Incentive

NATIONWIDE CASHLESS PROMOTIONS

3 YR – THB 450M

CONVENIENCE

33M USERS

DISTRIBUTION

90 OFFLINE + 300 ONLINE

Prepared by Investor Relations Department VGI Global Media Plc

12

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SLIDE 13

Rabbit’s: Web Portal

Prepared by Investor Relations Department VGI Global Media Plc

https://rabbit.co.th

13

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SLIDE 14

O2O: Data centric

ONLINE OFFLINE DATABASE

BTS Billboards Office Building Aviation Rabbit card Street Furniture

RABBIT MEDIA

Prepared by Investor Relations Department VGI Global Media Plc

14

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SLIDE 15

O2O: Location, Time & Demographic

8:30AM In Train:

Instagram Newsfeed

8:15AM BTS Platform:

LED Display

8:00AM Morning Coffee:

Branded coffee cups

8:20AM Mobile Phone:

Facebook Newsfeed

8:25AM In Train:

LCD Displays

Prepared by Investor Relations Department VGI Global Media Plc

15

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SLIDE 16

Adaptive

conversion

Offline

awareness

Online

engagement

O2O: Conversion flow

Facebook Ads Rabbit Daily Display Ads > 4mn viewers/ month Rabbit Line Pay Official account Rabbit Card Printing

  • > 5.7mn Rabbit card holders

19mn ridership/ month

Prepared by Investor Relations Department VGI Global Media Plc

16

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SLIDE 17

Existing business overview and growth driver

17

BTS-RELATED MEDIA

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.

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 our investment in ARTISTA and its portfolio

  • f 219 residential buildings.

OUTDOOR MEDIA

We have now expanded our footprint to Out-of-Home (OOH) media by acquiring 37.42% shares of set-listed: MACO, the leading OOH media advertising company. MACO has 28 years experience in OOH media with a portfolio of more than 1,221 billboards in Bangkok and upcountry.

AVIATION MEDIA

We expand our network to include aviation media through

  • ur 30% investment in Aero Media, whose business is

managing media space across 13 domestic airports. Although

  • nly established in 2014, it was able to demonstrate
  • utstanding performance in a vibrant segment.

“The leading Bangkok-centric advertising media company”

Revenue THB 2,056mn

1,813 793

Revenue NPAT

243 30

Revenue NPAT

694 171

Revenue NPAT

232 35

Revenue NPAT

100% OWNED ASSOCIATES

*includes gain from investment in associates

5-10% 10-12% 7-10% 10-15%

  • New contracts in

ASEAN countries

  • M&A
  • Additional advertising

space of more than 10,000 sq.m. per year

  • M&A
  • Expand our coverage

beyond Bangkok

  • Expand our potential

market by entering into new segments

NPAT THB 859mn* Organic Growth Catalyst

  • 38km green line extension
  • 71km other line extension
  • 149 additional trains
  • 4X capacity

37.42% OWNED

Prepared by Investor Relations Department VGI Global Media Plc