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PIONEERING SOLUTIONS FOR TOMORROW
VGI INVESTOR PRESENTATION MAY 2020
DISCLAIMER
EVOLUTION FROM TRADITIONAL ADVERTISING TO “O2O SOLUTIONS”
1998 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 > 36051 70
>110,000 >6,000 >1,000
>1,200,000 >670 >550
NO.1 OUTDOOR
>1,000,000 30 392>20,000 >2,000 >1,000
NO.1 TRANSIT NO.1 BUILDING
>1,000,000 186 319 >2,173
>2,000,000 >16,000 >20,000
NO.1 DELIVERY
PAYMENT
13.0mn Cards 5.0mn Members2.0mn Members7.3mn Users 100k Users
LOGISTICS
2012
2013
2016
2019
2015
2006
2018
VGI BUSINESS MODEL
O2O SOLUTIONS
R&F CONVERSIONIMPACT LOYALTYPAYMENTENGAGEMENT
DATA
ENGAGEMENT CONVERSIONAWARENESS
ADVERTISING PAYMENT LOGISTICS
DATA
2.0mn Members
13.0mn Cards 7.3mn Users
5.0mn Members
30.0mn Reachable
23.0mn Receipts and Sellers1
WHAT CAN THESE TELL US?
Car Insurance Buyers:
Credit Card Comparisons:
Airport Wifi:
Unionpay Card Data:
Kerry:
VGI C
ORP
ORA
TEDA
TAPA
RTN
ERSH
IP D
ATA
100K Users
36mn Riders
Chinese audience
O2O SOLUTIONS
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. ENGAGEMENT4. CONVERSION
1. CONVERSIONPAYMENT
RETARGETING
RETARGET
FOCUSING ON THE HIGHEST GROWTH INDUSTRY
OOH AND ONLINE OUTPERFORMING INDUSTRY SPENDING
TRADITIONAL CAGR1 = 0.3%
OOH CAGR1 = 9.3%
Increasing mobility Increasing urbanization Fragmentation of other broadcasting channels
Improving of OOH Media(Digitalisation, data, planning tools,
mobile connection etc.)
ONLINE CAGR1 = 63.2%
INDUSTRY CAGR1 = 3.7%
RIDE ON E-COMMERCE
4XE-COMMERCE MARKET
Increasing Players In E-commerce Market
Increasing Transaction Through Online
Growth Opportunity For E-Payment &
Logistics
Increasing Demand On Goods DeliveryAnd Other Services
STRATEGIC GROWTH DIRECTION AND UPDATE
ENGINES FOR GROWTH
B2C
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B2B B2B, C2C, B2B2C
DATA FOR O2O SOLUTIONS
PAYMENT
ADVERTISING LOGISTICS
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5-6X ORGANIC GROWTHADVERTISING
5-6X INCREASE IN TRAIN & STATION CAPACITY
INVENTORY EXPANSION
PREMIUM MASS
OBJECTIVE
AUDIENCE
HYBRID
CONNECT
IMPA
CT/E
XPE
RIEN
CERE
ACH
/FRE
QU
ENCY
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
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PAYMENT
2016 – CURRENT ACHIEVEMENTS 2021 STRATEGIC EXPANSION
TARGETING 10 MILLION MAU IN 2021
STRATEGIC PARTNERSHIP PROVED TO ACCELERATE GROWTH IN USER BASEPAYMENT
RABBIT LINEPAY
+33.2% YoY
RABBIT CARD
+18.0% YoY
NETWORK EXPANSION TO ACCOMMODATE THE RISE OF E-COMMERCELOGISTICS
250XKERRY PARCEL HANDLING
40,000
KERRY PARCEL SHOP
KERRY TRUCK
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
C2C67%
C2C50%
C2C50%
B2C31%40,000
75,000
500,000
1,000,000
8,000
C2C50%B2C40%
2,000,000
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:
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SHAREHOLDING STRUCTURE
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
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MANAGEMENT AND CONTROL
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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
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• China Solutions:
POTENTIAL PARTNERS
ACQUISITION OF 25.0% IN ADS CHAO PHRAYA COMPANY LIMITED
TRANSACTION SUMMARY
RATIONALE
% of investment
Total shares acquisition
Total investment
VGI General Mandate
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PRE SHAREHOLDING STRUCTURE
POST SHAREHOLDING STRUCTURE
PARTNERSHIP WITH SAHA GROUP
TRANSACTION SUMMARY
Established the JVCo namely “SLV Retail Company Limited”
% of holding
Registered capital:
Source of fund:
SHAREHOLDING STRUCTURE
RATIONALE AND SYNERGIES OF THE JOINT VENTURE
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ACQUISITION OF HELLO BANGKOK LED AND PARTNERSHIP WITH PLAN B
TRANSACTION SUMMARY
I. Acquire 50% in Hello Bangkok LED Company Limited (“Hello LED”)
% of investment:
Total investment:
Source of fund:
II. Issue PP to Plan B Media Public Company Limited (“PLANB”)
No. of shares issued:
Price:
Total value:
III. Appoint PLANB to be the asset manager for media in Thailand
Revenue sharing:
Minimum guarantee:
Duration:
Completion:
PRE/ POST SHAREHOLDING STRUCTUREPre shareholdings structure
Post shareholdings structure
RATIONALE•
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ESTABLISH FOOTPRINT IN VIETNAM MARKET
TRANSACTION SUMMARY
RATIONALE
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SHAREHOLDING STRUCTURE
% of investment:
Total investment:
Source of fund:
Expected Completion
FINANCIAL
VGI FINANCIAL PERFORMANCE
2016/17 2017/18(Restated)
12018/19
(Restated)2
2019/20 YoY (%)
INCOME STATEMENT (THB mn)
BALANCE SHEET (THB mn)
CASH FLOW (THB mn)
PER SHARE DATA (THB/ share)
KEY RATIOS
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TRANSIT DIGITAL SERVICES
OFFICE & OTHEROUTDOOR
THB 4,000mn
OUT-OF-HOMETHB 2,848mn (71.2%)
REVENUE BY BUSINESS UNITS
TRANSIT MEDIA REVENUE (THB mn) OFFICE & OTHER MEDIA REVENUE (THB mn)
OUTDOOR MEDIA REVENUE (THB mn) DIGITAL SERVICES REVENUE (THB mn)
-9.2% YoY
11.1% YoY +117.5% YoY
-9.9% 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
72.9%
7.6%19.5%
76.6%
7.8%15.6%
Actual Target
2019/20 2019/20
Total VGI 241 450
Total 521 700
22,773
17,07722.5%
77.5%
15.3%
84.7% Non-current assets
CASH FLOW (THB mn)
22,773
17,077
ACHIEVEMENT
AWARDS AND ACHIEVEMENTS
SET AWARDS 2019: YOUNG RISING STAR CEO AWARD
SET AWARDS 2019: INVESTOR RELATIONS AWARD
SET AWARDS 2019: COMPANY PERFORMANCE AWARD
SET AWARDS 2019: CEO AWARD
AWARDS AND ACHIEVEMENTS
EXCELLENT CG SOCRING (5-STARS)SET 50 THAILAND TOP CORPORATE BRAND
AWARDS AND ACHIEVEMENTS
ESG TOP 100 LISTED COMPANIES NEXT 1,000 ASEAN COMPANIES BOARD OF THE YEAR BEST UNDER A BILLION 2014
APPENDIX
SHARE AND DIVIDEND INFORMATION
SHARE INFORMATION (AS OF 31 MAY 2020)
SHARE PRICE MOVEMENT (AS OF 31 MAY 2020)
DIVIDEND INFORMATION
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Payout Ratio
7.95
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0.0
2.0
4.0
6.0
8.0
10.0
12.0
12-Oct-12 12-Oct-13 12-Oct-14 12-Oct-15 12-Oct-16 12-Oct-17 12-Oct-18 12-Oct-19
VGI TURNOVER (RHS) SET Index (rebased) VGI TB
ADTV = THB 128mn
ADVERTISING: TRANSIT MEDIA
TRANSIT MEDIA PROFILE OUR PRODUCTS
2,184
floodsRedshirt
MorningPeriod
Yellowshirt
Royal cremation
KEY FINANCIAL HILIGHTS
54.6%
NPAT margin 20 - 25%
CAPEX700mn
No. of locationStatic MediaDigital MediaViewer reachMerchandising space
I. TRAIN
II. STATION
III. MERCHANDISING & OTHER
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RIGHTS & NETWORK
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EFFECTIVE PERIOD
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CONCESSION FEE (PAYABLE TO BTSC & BMA)
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10YRS CAGR: 9.4%2019/20Revenue Contribution
coupd’etat
ShutdownBKK
COVID-19Pandemic
ADVERTISING: TRANSIT MEDIA
EXISTING LINES AS OF 2019/20 EXISTING LINES BY OPERATOR
52 53 8
58.1 70.0 28.5
TOTAL DISTANCE: 156.6KM
787,315 433,000 80,000
TOTAL AVG. WEEKDAY RIDERSHIP: 1,192,503
TOTAL STATION: 113
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)
OPE
RATI
NG
Und
er
Cons
truc
tion
ADVERTISING: TRANSIT MEDIA
ADDITIONAL OF RAIL MASS TRANSIT LINES 81.2KM TARGETED LINES IN 2022/23 – 2024/25
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)
371
ADVERTISING: OFFICE BUILDING & RESIDENTIAL MEDIA
No. of location
OFFICE BUILDING AND RESIDENTIAL MEDIA PROFILE OUR PRODUCTS
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RIGHTS & NETWORK
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LENGTH OF CONTRACT
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CONCESSION FEE
KEY FINANCIAL HIGHLIGHTS
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No. of location
I. MEDIA INSIDE ELEVATORS AND OFFICE BUILDING AREAS
II. MEDIA INSIDE ELEVATORS AND RESIDENTIAL BUILDING AREAS
10 YRS CAGR : +34.6%2019/20Revenue Contribution
8.6%
9.3%
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ADVERTISING: OUTDOOR MEDIA
MACO’S PRODUCTSI. BILLBOARD
II. STREET FURNITURE AND DIGITAL
III. SYSTEM INTEGRATION AND DIGITAL SERVICES*
INTERNATIONAL NETWORK
INVESTMENT & ACCOUNTING METHOD
OUTDOOR MEDIA PROFILE
DOMESTIC NETWORK
BillboardStreet Furniture and Digital
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MRT SBK line MRT North-South line KTM Electric Train ServiceKL International Airport: terminal 1&2
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KEY DEVELOPMENT IN 2019/20
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ADVERTISING: AVIATION MEDIA
AERO MEDIA’S PRODUCTSAVIATION MEDIA PROFILE
No. of locationDigital MediaStatic Media
Media on plane
RIGHTS & NETWORK
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INVESTMENT & ACCOUNTING METHOD
•
LENGTH OF CONTRACT
I. LEDS SCREEN
III. JET BRIDGES
IV. TROLLEYS
II. MEDIA ON PLANE
ADVERTISING: ACTIVATION MEDIA
ACTIVATION MEDIA PROFILE
RIGHT AND NETWORK
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INVESTMENT & ACCOUNTING METHOD
DEMO POWER SERVICES, PARTNERS AND BRANDS
I. SERVICES
II. BUSINESS PARTNERS
III. BRANDS
No. of locationAudience interactionConsumer journey
PAYMENT
OFFLINE PAYMENT: RABBIT CARD
INVESTMENT & ACCOUNTING METHOD
PAYMENT PRODUCTS
I. RABBIT CARD
II. RABBIT LINEPAY
Rabbit CardsRetailer Points
CurrentRabbit LinePay Users
CURRENT VS FUTURE’S RIGHT AND NETWORK
ONLINE PAYMENT: RABBIT LINEPAY
INVESTMENT & ACCOUNTING METHOD
CURRENT VS FUTURE’S RIGHT AND NETWORK
PAYMENT
FINANCIAL MARKETPLACE SERVICE PRODUCTS
I. ONLINE INSURANCE BROKER
INVESTMENT & ACCOUNTING METHOD
SERVICES
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MICRO LOAN THROUGH THE JOINT VENTURE WITH AEON
INVESTMENT & ACCOUNTING METHODII. AEON RABBIT MEMBER CARD
Insurance companies in-services
SERVICES
CurrentOutstanding loan
LOGISTICS
DELIVERY SERVICES PORTFOLIO SERVICES PRODUCTS
INVESTMENT & ACCOUNTING METHOD
SERVICES CHANNEL
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NETWORK
PAYMENT LOGISTICSADVERTISING
VGI COMPANY STRCUTURE As of May 2020
VGI•
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DOMESTIC
MACO COMPANY STRUCTURE
INTERNATIONAL
MACO•
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As of May 2020
DEFINITIONS
ORGANISATION STRUCTURE