Post on 10-Feb-2021
VGi Global Media PCL General Presentation
Prepared by Investor Relations Department VGi Global Media PCL
BTS-RELATED MEDIA
OFFICE BLDG & OTHERS
MODERN TRADE MEDIA
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 on as promise or representation of the Company as to the future.
Disclaimer
2 Prepared by Investor Relations Department VGi Global Media PCL
Agenda
3
Section 1 Who is VGI?
Section 2 Advertising Industry & VGI
Section 3 Key Success Factors & Competitive Advantages
Section 4 Growth Prospects
Appendices
Prepared by Investor Relations Department VGi Global Media PCL
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009/10 2010/11 2011/12
Key Milestones
4 Prepared by Investor Relations Department VGi Global Media PCL Section 1: Who is VGI?
1999
Granted initial “License to Manage Marketing Services Agreement” from BTSC
Exclusive license to manage the advertising spaces and merchandising areas of 23 stations and all trains for a period of 10 years
2003
Granted initial “Advertisement Display Concession Agreement” from Watsons
2010
VGI set up VGI Ad China
2005
Granted initial “Advertisement Display Concession Agreement” from Big C (non-Sales floor)
2009
Granted “Advertisement Display Concession Agreement” from Carrefour
BTSC becomes major shareholder of VGI
VGI acquired POV
2012
2004
Granted initial “Advertisement Display Concession Agreement” from Tesco Lotus (non-Sales floor)
2011
Granted Advertisement Display Concession Agreement in “Sales floor” from Tesco Lotus and Big C
Amended “License to Manage Marketing Services Agreement” with BTSC
Listed in the Stock Exchange of Thailand
https://vip.watsons.co.th/web/Home.dohttp://www.bigc.co.th/th/
19
76 80
166
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Office Bldg. & Other Media Revenue (THB mn)
207 391
754
1,250
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Modern Trade Media Revenue (THB mn)
889 934 1,143
1,422
FY 09/10 FY 10/11 FY 11/12 FY 12/13
BTS Media Revenue (THB mn)
Share Information
Key Figures
(for FY 12/13)
THB (mn) USD (mn)
Revenue 2,838 95 EBITDA 1,289 43 Net profit 908 30 Total assets 2,573 86
(as of 31 Mar 2013)
Stock Code VGI Outstanding Shares (mn) 300 Market capitalisation (THB mn) 39,450
(USD mn) 1,315 Average Daily Traded Value (THB mn) 219.1 (USD mn) 7.3
VGI in Brief
Prepared by Investor Relations Department VGi Global Media PCL
Remarks: - Exchange rate based on USD 1 = THB 30
- Average Traded Value excludes first 2 days of trading
BTS Media
Office Building & Other Media
Modern Trade Media
Historical Revenue *
*Excludes other income
Section 1: Who is VGI? 5
VGI’s Media Network Broad yet targeted media reach
6 Prepared by Investor Relations Department VGi Global Media PCL
BTS Media Modern Trade Media (Tesco Lotus, Big C, Watsons)
Office Bldg. & Other Media
No. of Locations 23 stations & 47 trains 1,624 branches 51 buildings
Static Media > 6,000 displays In-train & on station
> 11,000 m2 (sales floor) 624 displays (non-sales floor)
-
Digital Media (screens)
80 on-station & 1,038 LCDs in-train 3,131 screens
452 in elevators & 4 Mega LED screens
Viewer Reach (per day)
>608,000 BTS Ridership
≈ 1,000,000 shoppers
250,000 building visitors
Area Coverage CBD Nationwide CBD
Target Viewers • Working people and younger generation
• age 15-35 • middle income
• Women, housewives and families
• middle-low income
• White collar workers • age 24-45 • mid-high income
Revenue Contribution
50% 44% 6%
Gross Profit Contribution
72% 21% 8%
Section 1: Who is VGI?
272 308 406 427 468
583 734 889 934
1,143 1,422
Static
Key Concession Terms
BTS Media
7 Prepared by Investor Relations Department VGi Global Media PCL
Multimedia
A. Rights 1) Exclusive rights for 23 stations & all BTS trains In Trains & on Stations Merchandising Area Additional areas
2) First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space
B. Effective Period 18 May 2012 – 4 December 2029
C. License Fees 5% - 20% of total revenues/year
(an incremental increase of 5% every 5 years)
BTS SkyTrain BTS Platforms
Train Body Wrap
Digital Screen inside the train
Standard
Platform Truss
Pier Head
Past Success
Merchandising Space
Merchandising Shop
BTS Media Revenue (THB mn)
Apr - Mar Jan - Dec
CAGR (10 years) = 18.0%
Section 1: Who is VGI?
Key Concession Terms
Modern Trade Media
8 Prepared by Investor Relations Department VGi Global Media PCL
Digital Media
A. Rights 1) Exclusive rights for existing and upcoming branches Tesco Lotus Big C (including former Carrefour) Watsons (digital media)
2) First right to extend contract
B. Length of Contract 3-5 years on average
C. License Fees Mainly based on percentage of revenue sharing and
minimum guarantee Sales Floor Area Non-Sales Floor Area
Shelf Divider
Radio Media in Tesco Lotus & Big C
Shelf Frame
& Floor Sticker
Entrance Lightbox
Sensormatic
Past Success
Health and Beauty Zone
Aisle Arch
Acquired exclusive rights to manage all advertising areas from Tesco Lotus and Big C, the top 2 players in the Modern Trade Retailer industry
Big surge in revenue (93% growth in FY 2011/12) mainly from sales floor areas, which account for over 70% of total Modern Trade Media revenue
Section 1: Who is VGI?
Static Media
Outdoor LED Screens
Key Contract Terms
Office Building & Other Media
9 Prepared by Investor Relations Department VGi Global Media PCL
A. Rights & Length of Contract 1) Office Buildings 51 buildings in CBD, 3-5 years contract (avg.)
2) Outdoor LED (Selling Agent) 10 locations in Bangkok 1 year contract with renewable rights
3) Chulalongkorn University (CU) Bus 15 buses and 15 bus-stops 1 year contract with renewable rights
4) Airport Link (Selling Agent) 9 trains, train body wrap, LCD in-train media, and 8
stations Contract expires in October 2021
B. License Fees Revenue sharing and fixed rates
Digital Screen in Elevators Platform Banister
Rama 9 Junction
Past Success
Changed to integrated network across all office buildings, increasing sales by 50%
Bundled Office Building Media with the Company’s other media and sold as a package, increasing occupancy and driving sales by 100%
Chulalongkorn University (CU) Bus
Bus Body Wrap Bus Shelter
Wang Burapha
Section 1: Who is VGI?
Airport Link Media Office Building Media
0.4%
1.5%
2.5%
4.1%
5.6%
5.6%
6.9%
13.9%
59.4%
0.5%
2.4%
2.6%
4.0%
4.7%
5.6%
7.0%
13.3%
59.9%
Internet
In-Store
Transit
Outdoor
Magazines
Cinema
Radio
Newspapers
TV
0.5%
1.7%
2.3%
4.2%
4.7%
5.9%
5.5%
14.2%
61.1%
0.8%
1.9%
2.9%
3.9%
4.5%
4.6%
5.4%
13.3%
62.7%
Internet
In-Store
Transit
Outdoor
Magazines
Cinema
Radio
Newspapers
TV
Media (bn) 2012 2011 %YoY
Industry* 113.8 104.8 8.6%
Mass Transit 3.0 2.6 12.0%
In-Store 2.7 1.6 68.8%
2012 vs. 2011 (Jan – Dec)
Industry Overview: Thai Media Market Share
10 Prepared by Investor Relations Department VGi Global Media PCL
Source: The Nielsen Company (Thailand) Limited
Transit
In-Store
*Note: Excludes classified and house ads. ,
Market Value (THB)
Section 2: Advertising Industry & VGI
Media (bn) 1Q13 1Q12 %YoY
Industry* 26.4 26.0 1.3%
Mass Transit 0.8 0.6 30.4%
In-Store 0.5 0.4 17.0%
Market Value (THB) Transit
In-Store
1Q13 vs. 1Q12 (Jan – Mar)
1 FMCG 93%
2 MOTOR VEHICLE ACCESSORIES 2%
3 MOTOR VEHICLES 1%
4 PHOTOGRAPHIC PRODUCTS 1%
5 COMMUNICATIONS 0.4%
6
FOOD OUTLETS & RESTAURANTS
0.3%
7 PHARMACEUTICALS 0.3%
8 REAL ESTATE 0.2%
9 LEISURE 0.2%
10
GOVERNMENT & COMMUNITY ANNOUNCEMENT
0.2%
TOP 10 99%
OTHERS 1%
Top 10 Ad Spending by Business Segments (1 Apr 2012 – 31 Mar 2013)
Industry Overview: Ad Spending by Business Segment
11 Prepared by Investor Relations Department VGi Global Media PCL
Source: The Nielsen Company (Thailand) Limited
OVERALL MEDIA INDUSTRY VGI MASS TRANSIT VGI IN-STORE
1 FMCG 41%
2 MOTOR VEHICLES 7%
3
GOVERNMENT & COMMUNITY ANNOUNCEMENT
6%
4 COMMUNICATIONS 5%
5 LEISURE 4%
6 RETAIL SHOPS/STORES 4%
7 BANKS 3%
8 REAL ESTATE 3%
9 INSURANCE 2%
10
FOOD OUTLETS & RESTAURANTS
2%
TOP 10 78%
OTHERS 22%
*Excludes classified and house ads.
1 FMCG 41%
2 COMMUNICATIONS 9%
3
FOOD OUTLETS & RESTAURANTS
4%
4 TRAVEL & TOURS 4%
5 REAL ESTATE 4%
6 RETAIL SHOPS/STORES 4%
7 LEISURE 4%
8 PHOTOGRAPHIC PRODUCTS 3%
9 COMPUTERS 3%
10 BANKS 3%
TOP 10 77%
OTHERS 23%
Section 2: Advertising Industry & VGI
Ability to Reach Audience
Business Strategy Cost Effectiveness
Key Success Factors & Competitive Advantages Right Place, Right Timing, and Right Targeted Viewers
BTS SkyTrain and Office Buildings
Captive media (No remote control)
High frequency
Strong impact
Modern Trade
Final Point of Sales Media, which is the last mile to purchase
Prominent locations
Nationwide viewer base Prepared by Investor Relations Department
VGi Global Media PCL 12
Source : The Nielsen Company (Thailand) Limited
Section 3: Key Success Factors & Competitive Advantages
Women, housewives and families
Working people and younger generation (age 15-35)
White collar workers
(age 24-45) Office
Building
BTS SkyTrain
Modern Trade
VGI’s cost per thousand viewers is 15-20% cheaper than TV
Nationwide Media Network 1
Strong ability to reach viewers 2
Well-Classified Target Viewers
Product Advantage
3 Product Variety
4 Product Bundling
2001 2002 2003 2004 2005 2006 2007 2008 2009/10 2010/11 2011/12 2012/13
183 317 352
482 521 651
844 1,046
1,138
1,413
2,005
2,872
Jan - Dec Apr - Mar
Floods Global financial
crisis
Coup d’Etat
Bangkok Political
Demonstration
Note: *Includes other income
Unit : THB mn
Non-BTS Revenue*
BTS Ridership Trend
BTS Revenue*
Prepared by Investor Relations Department VGi Global Media PCL
13
Uninterrupted revenue growth in every single year from both BTS revenue and non-BTS revenue despite various disruptions and decline in BTS ridership, demonstrating resilience against crisis.
VGI Revenue CAGR (11 years) = 28.5%
Section 3: Key Success Factors & Competitive Advantages
Key Success Factors & Competitive Advantages Resilience & Growth
45% 49%
6%
BTS Modern Trade Office Bldg
FY 13/14 50% 44%
6%
BTS Modern Trade Office Bldg
Target 2013/14: Overall Business
14 Prepared by Investor Relations Department VGi Global Media PCL
Expected Revenue Contribution by Business Units
FY 12/13
Section 4: Growth Prospects
30% YoY Revenue Growth
20% Off. Bldg & Others
40% Modern
Trade 20% BTS
Expected Revenue Growth
Platform Screen Door 160
BTS: Platform Truss LED (76 screens) & LCD in-train (120 screens for 5 trains) 300
Modern Trade and Others 80
Total 540
Expected CapEx 2013/14 (THB mn)
media capacity on non-prime stations
20% BTS Growth
Target 2013/14: Growth Drivers
15 Prepared by Investor Relations Department VGi Global Media PCL
23% train capacity (from 35 single-cars)
10% price adjustment on platform media
2.5x capacity increase from platform truss LED
Section 4: Growth Prospects
Current Package New Package
Platform Truss (static media)
18 packages: 7% of BTS-related revenue
14 packages
On-station LCD 7% of BTS-related revenue Remove from 20 stations
Platform Truss LED (digital media)
n/a Install on 20 stations: • 4 locations on 18 stations • 2 locations on 2 stations
(Mo Chit & National Stadium)
Current Package: Platform Truss & On-station LCD New Package: Platform Truss LED
Platform Truss LED
Target 2013/14: Growth Drivers
16 Prepared by Investor Relations Department VGi Global Media PCL
2.5x Expected Revenue Growth from the New Package
2.5x capacity increase
Section 4: Growth Prospects
Target 2013/14: Growth Drivers
17 Prepared by Investor Relations Department VGi Global Media PCL
40% Modern Trade Growth
Digital 50% 65% Sales Floor
40% 60%
Occupancy
70% YoY pre-booking
from top 5 customers
Customers
Double-digit revenue growth
Retailer Growth
Toys & Stationery Processed food, cooking, and confectionery
Chemical & Houseware
Sample Sales Floor Plan
Sales Floor Products 1. Aisle arch 2. Shelf frame 3. Shelf divider 4. Shelf pop-up 5. Shelf LCD 6. Shelf strip 7. Top stock 8. Chiller ads / end chiller ads 9. Freezer ads 10. Floor sticker 11. Brand spotlight 12. Message board 13. Cart ads 14. Pole wrap 15. End cap hard line
Non-Sales Floor Products 1. Entrance tri-vision 2. Entrance light box 3. Pole ad 4. Car park light box 5. Cart escalator light box 6. Escalator light box 7. Archway 8. Cart light box 9. Sensormatic 10. Table ads 11. Hall escalator light box 12. Mirror ads 13. Door ads 14. Lift ads 15. Vertical board 16. Promo table wrap 17. Motorcycle parking area
Section 4: Growth Prospects
42
16
1 79
18
0
53
12
0 57
47
11
38
14
2
53
13
2 57 47 11 BKK
265 73 5 UPC
322 120 16 TOTAL
Source: Tesco Lotus, Big C, and Bohdi Tree Knowledge Co., Ltd.
Target 2013/14: Growth Drivers
Growth in revenue to reflect modern trade retailers’ expansion and its revenue growth (Big C: target of 13% YoY)
Target number of new branches for 2013 Big C:
6 Big C Hypermarkets 13 Big C Markets 150 Mini Big Cs
Tesco Lotus: 10 Tesco Lotus
Hypermarkets 20 Tesco Lotus Talad 340 Tesco Lotus Express
VGI Media Coverage of Modern Trade Outlets in Thailand*
40% Modern Trade Growth
Modern Trade Retailer Growth
18
* Data includes only large and medium formats as of 31 Mar 2013
Section 4: Growth Prospects
Target 2013/14: Growth Drivers
19 Prepared by Investor Relations Department VGi Global Media PCL
20% Office Building and Others Growth
CU Bus
Airport Link Office Building
Outdoor LED
20% Growth
• 20% revenue increase
• 10 building expansion
• 15% occupancy increase
• Full year revenue recognition
• Full year revenue recognition
Section 4: Growth Prospects
Mass Transit
Modern Trade
Office Building& Others
17% Annual Revenue Growth
10% Off. Bldg & Others
20% Mass
Transit
15% Modern
Trade
3 Years Outlook: Existing Business Growth
70%
25%
5%
2014/15 F
70%
25%
5%
2015/16 F
70%
25%
5%
2016/17 F
Excludes other income Percentages represent contributions to the parameter
Prepared by Investor Relations Department VGi Global Media PCL
20
NPAT Contribution
EBITDA Margin Revenue Growth
70%
25%
60%
Mass Transit Modern Trade Office Building & Others
Section 4: Growth Prospects
Business Opportunities
11 Stations on Green Line
extension
Innovative media
applications
JV and M&A
Other mass transit lines
3 Years Outlook: Business Opportunities
Prepared by Investor Relations Department VGi Global Media PCL
21
AEC
Section 4: Growth Prospects
APPENDICES
22 Prepared by Investor Relations Department VGi Global Media PCL
424 494 576 671
782 911
1,061
2011 2012 2013 2014 2015 2016 2017
Estimated Ridership Growth (from dark green line)
Increase in Fleet
Capacity increase of 36% with the 5 new trains
23 Prepared by Investor Relations Department VGi Global Media PCL
BTS’s current fleet
X12 48
Additional fleet on order
2) By end of 2013 X5 +20 +35.9%
No. of Carriages No. of Trains Capacity Increase
Source: Office of Transport and Traffic Policy and Planning
(‘000 passengers / day)
Increased BTS ridership from 35 new carriages and 5 trains pave the way for
viewership growth
X35 105
+35 +22.9% 1) By 2Q 2013/14
Appendix: BTS Expansion Plan
X47 153 Total Current Fleet
X52 208 Total Future Fleet
Future growth from existing non-prime stations
24 Prepared by Investor Relations Department VGi Global Media PCL
Currently 90% occupancy on 17 stations 23.5km on 23 core stations
NON-PRIME STATION
Extension Stations
WONGWIAN YAI
KRUNG THON BURI PHO NIMIT
TALAT PLU SAPHAN TAKSIN
S8 S10 S9 S7
WUTTHAKAT S11
S12
S6
BANG WA
Appendix: BTS Expansion Plan
7.5km
5.3km
Key Financial Ratios
Prepared by Investor Relations Department VGi Global Media PCL
25 Appendix: Key Financial Ratios
FY 12/13 FY 11/12 FY 10/11
Profitability Ratios
Gross profit (%) 54.6% 34.5% 35.3%
EBITDA (%) 45.4% 26.6% 25.1%
EBIT (%) 41.9% 21.6% 18.7%
Net profit (%) 32.0% 14.1% 12.3%
Return on Equity (%) 86.2% 78.8% 40.3%
Liquidity Ratios
Current Ratio (times) 2.7x 1.0x 1.1x
Quick Ratio (times) 2.6x 0.9x 1.0x
Efficiency Ratios
Return on Assets (%) 46.7% 21.3% 13.4%
Asset turnover (times) 1.5x 1.5x 1.1x
Leverage Ratios
Liability to Equity (times) 0.4x 3.5x 2.1x
Debt to Equity (times) No leverage
Shareholding Structure
26 Prepared by Investor Relations Department VGi Global Media PCL
BTSC
BTSG
Kanjanapas Family
BTSG’s Minorities
BTSC’s Minorities
49.1% 50.9%
97.5% 2.5%
0.1%
51.0%
Public Kanjanapas
Family
33.7% 0.6%
14.7%
(As of 2 May 2013)
Appendix: Shareholding Structure