VGI Global Media Plc. 2015/16 Earnings Presentation 16 May PDF Free Download

VGI Global Media Plc 2015/16 Earnings Presentation 16 May 2016

Disclaimer 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.

Agenda Section 1 Media Industry Overview Section 2 Section 2.1 2015/16 Key Milestone & Financial Performance 2015/16 Key Milestone Section 2.2 2015/16 Financial Performance Section 3 Business Update & 2016/17 Outlook

Media Industry Overview 2015/16 MEDIA ADSPEND (THB bn) Digital TV, 17.1% TV, 46.4% Newspapers, 10.0% Cable TV, 5.0% 2014/15 2015/16 1 FMCG 40% 40% 2 MOTOR VEHICLES 8% 8% 3 COMMUNICATIONS 7% 6% 4 GOVERNMENT & COMMUNITY ANNOUNCEMENT THB 120bn Source: The Nielsen Company (Thailand) Limited. OVERALL MEDIA INDUSTRY 6% 6% 5 LEISURE 5% 5% TOP 5 65% 65% OTHERS 35% 35% Radio, 4.8% Cinema, 4.4% Transit, 3.9% Outdoor, 3.7% Magazines, 3.3% Internet, 1.0% In-Store, 0.4% TOP 5 ADSPEND BY BUSINESS SEGMENT 2014/15 2015/16 1 FMCG 39% 38% 2 COMUNICATIONS 8% 7% 3 REAL ESTATE 3% 6% 4 VGI MASS TRANSIT RETAIL SHOPS AND STORES 5 MEDIA & MARKETING 3% 6% 5% 5% TOP 5 58% 61% OTHERS 42% 39% 2015/16 THAI ADSPEND VALUE (THB bn) FY 14/15 FY 15/16 % YoY TV 62.8 55.6-11.4% Digital TV 13.5 20.5 51.2% Cable/Satellite TV 6.1 6.0-0.9% Traditional Media* 23.5 21.6-8.2% Cinema 4.5 5.3 19.3% Outdoor 4.0 4.4 11.6% Transit 3.9 4.7 18.5% Internet 1.0 1.2 25.5% In-Store 1.9 0.4-77.8% Total Industry 121.2 119.8-1.2% THAI ADSPEND VS VGI REVENUE (THB mn) (THB mn) 2014/15 2015/16 % YoY Total Industry 121,213 119,810-1.2% VGI 1,994 2,056 +3.1% 28,755 29,264 28,951 28,894 30,869 32,200 29,250 31,521 30,782 30,774 26,407 26,733 460 486 486 422 476 490 542 486 499 537 520 500 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 Q2 14/15 Q3 14/15 Total Industry AdSpend (THB mn) Q4 Q1 Q2 Q3 Q4 14/15 15/16 15/16 15/16 15/16 VGI Revenue* *(THB mn) Section 1: Media Industry Overview *Includes Newspaper, Magazines and Radio ** Excludes Modern Trade Media Revenue 4

2015/16 Key Milestone STRATEGIC DEVELOPMENTS OUR NETWORK 1Q 15/16: 3Q 15/16: 4Q 15/16: Secured advertising contract on 7 green line extension stations Expanded our footprint into aviation media by investing 20% of AERO MEDIA Expanded our network into residential buildings by becoming an exclusive sale agent for ARTISTA Announced our intention to evolve into Nationwide Integrated Media Platform Announced an agreement to acquire additional 12.46% in which will trigger tender offer for all the remaining of MACO shares. RAIL MASS TRANSIT: 52 BTS trains 30 BTS stations > 4,000 static displays 2,029 digital screens OFFICE BUILDINGS: CONDOMINIUMS: AVIATION: OUTDOOR: 135 grade A&B office buildings 1,091 digital screens 219 residential buildings 549 digital screens 13 airports 342 LCD screens 4,500 trolleys 57 aerobridges 658 billboard & networking billboard 678 street furniture Section 2.1: 2015/16 Key Milestone 6

2015/16 Overview CONSOLIDATED P&L SNAPSHOT (FINANCIAL STATEMENT) (THB mn) 2015/16 2014/15 % YoY Operating revenue 2,106 2,963-28.9% Cost of sales 769 1,325-41.9% Gross profit 1,337 1,638-18.4% EBITDA 1,336 1,225 9.0% NPAT from operation 838 1,010-17.0% NPAT (inc. extra items) 941 838 12.3% Margin (%) Gross profit margin 63.5% 55.3% EBITDA margin 63.5% 41.4% NPAT margin (from operation) 39.8% 34.1% NPAT margin (inc. extra items) 44.7% 28.3% 2015/16 REVENUE CONTRIBUTION CONSOLIDATED P&L SNAPSHOT (W/O MODERN TRADE MEDIA) (THB mn) 2015/16 2014/15 % YoY Operating revenue 2,056 1,994 3.1% Cost of sales 710 532 33.7% Gross profit 1,346 1,462-8.0% EBITDA* 1,245 1,356-8.2% NPAT from operation 851 972-12.4% NPAT (inc. extra items) 954 799 19.4% Margin (%) Gross profit margin 65.4% 73.3% EBITDA margin* 60.6% 68.0% NPAT margin (from operation) 41.4% 48.8% NPAT margin (inc. extra items) 46.4% 40.1% *excludes extra items 2015/16 REVENUE CONTRIBUTION Office building & other media 13.9% Office building & other media 11.8% THB 2,106mn THB 2,056mn 86.1% BTS-related media 88.2% BTS-related media Section 2.2: Financial Performance 7

Financial Performance by Sector BTS-RELATED REVENUE (THB mn) BTS-RELATED REVENUE BREAKDOWN (THB mn) 1,805 1,813 +0.4% YoY 825 757 45.7% 41.7% 580 597 32.1% 33.0% 2014/15 2015/16 459 401 22.2% 25.3% 2014/15 2015/16 OFFICE BUILDING & OTHER REVENUE (THB mn) Train Station Merchandising and Others OFFICE BUILDING & OTHER REVENUE BREAKDOWN (THB mn) 243 189 2014/15 2015/16 Section 2.2: Financial Performance +28.6% YoY +23.6% YoY 163 201 86.2% 82.7% 32.8% Office Building +61.4% YoY 2014/15 2015/16 25.3% 42 26 13.8% 17.3% Other Media 8

Balance Sheet & Cash Flow ASSETS BREAKDOWN (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) Current assets 3,286 3,099 1,042 32% 837 27% Current liabilities Non-current liabilities 3,286 1,433 24 44% 1% 3,099 822 35 27% 1% Non-current assets 2,244 68% 2,262 73% Equity 1,829 55% 2,242 72% 31-Mar-15 31-Mar-16 31-Mar-15 31-Mar-16 CASH FLOW (THB mn) CAPEX (THB mn) 785 65 CFI of THB 154mn 158 69 CFF of THB 805mn 515 2015/16 BTS-related Media 93 Office building & Others 65 Total 158 529 290 355 Beginning cash (31/03/15) CFO Asso.com and JV (Invt.&Loan to &Sales) CapEx Int. Income & oth. Dividend Payment CFF Ending Cash (S/T repay) (31/03/16) Section 2.2: Financial Performance 9

Business Update Nationwide Integrated Media Platform within 2 years transit office outdoor aviation digital activation 55% market share >700,000 viewers reached daily Long term contracts end 2029 & 2042 4X expected capacity 70% GP margin 63% market share (Grade A&B buildings) >650,000 viewers reached daily 135 office buildings 219 condominiums 60% GP margin >37.42% in MACO 178 mega billboards 480 networking billboards 678 street furniture 56% GP margin 20% in Aero Media >115mn viewers reached annually 342 LCD screens 4,500 trolleys 57 aerobridges Online & Offline 5mn card holders 90 offline merchants >30mn potential e-wallet members 33mn potential online impressions Targeted 2mn registered loyalty members 16mn monthly emails targeted for FY16 2.6mn monthly deliveries (Kerry) proven winner 1 st strategic step growth prospects Section 3: Business Update & 2016/17 Outlook 11

MACO Transaction VGI s BODs held on March 16, 2016 approved the acquisition of ordinary shares and making of tender offer for the total securities of MACO. Expected transaction cost of THB 2,044.5mn. TRANSACTION SUMMARY acquire 375mn shares from major shareholders number of shares price total investment 375mn shares (or 12.46% of total shares) THB 1.10 per share THB 412.5mn founder group DCORP group (150mn shares, or 4.99%) Maneerattanporn family (125mn shares, or 4.15%) Tansalarak family (100mn shares, or 3.32%) After having 37.42% shareholding in MACO which triggers 25% threshold, VGI is required to do a tender offer for the rest of MACO s shares tender offer number of shares up to 1,484mn shares (or 0 to 48.79%* of total shares) price total investment source of funds THB 1.10 per share up to THB 1,632mn *Excluded the rest 13.79% of founder group. Cash flows from operation and/or credit facilities support from financial institutions Section 3: Business Update & 2016/17 Outlook TIMELINE OF ACQUISITION & TENDER OFFER BOD approval 16 MAR Execute SPA* 17 MAR EGM 30 MAY *SPA: Sell and Purchase Agreement PRE VS POST STRUCTURE pre acquisition & tender offer public, 48.79% VGI, 24.96% founder group, 26.26% 12.46% Acquisition done 31 MAY post acquisition & tender offer public, 48.79% (tender offer) VGI, 37.42% Tender offer period 3 JUN 8 JUL 12.46% of founder group are:- 4.99% DCROP Group 4.15% maneerattanporn 3.32% Tansalarak Acquire additional 12.46% from founder group founder group, 13.79% 12

2016/17 VGI Targets and CapEx VGI TARGET REVENUE (THB mn) & GROWTH (%) +50% +5% +25% +240% 3,100 REVENUE BREAKDOWN (THB mn) BTS Related 61% Outdoor 26% 1,900 800 * THB 3,100mn Office Building 8% 250 150 Other 5% Total Revenue *after elimination BTS-Related Media Outdoor Media Office Building Media Other Media GROWTH DRIVERS (%) REVENUE BREAKDOWN (THB mn) BTS Increase occupancy in all existing media 7 new extension stations Total CAPEX of THB 500mn, comprising VGI CAPEX of THB 300mn and MACO CAPEX of THB 200mn Office Building Increase package price by 20% Increase number of buildings from 130 to 160 buildings 500 Outdoor Other Media capacity is expected to increase from THB 900mn in 2015 to THB 1,300mn in 2016. Additional revenue from Chamchuri Square, Wifi project, Empire tower, UPC Co mass and Clock Tower Total CAPEX 100 BTS-Related Media 200 Outdoor Media Office Building Media 100 100 Other Media Section 3: Business Update & 2016/17 Outlook 13

VGI Global Media Plc. 2015/16 Earnings Presentation 16 May 2016