4q & fy 12/13 earnings presentation - listed...

VGi Global Media PCL

Prepared by Investor Relations Department VGi Global Media PCL

4Q & FY 12/13 Earnings Presentation 17 May 2013

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 Industry Overview

Section 2 Financial Performance

Section 3 Business Updates

Appendix


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

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

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


Transit

In-Store

*Note: Excludes classified and house ads.

Market Value (THB)

Section 1: Industry Overview

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)

Source: The Nielsen Company (Thailand) Limited

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


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


2%

TOP 10 78%

OTHERS 22%

*Excludes classified and house ads.

1 FMCG 41%

2 COMMUNICATIONS 9%

3


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 1: Industry Overview

Modern Trade Media

14%

P&L Snapshot 4Q 12/13 & FY 12/13 (THB mn)

4Q & FY 2012/13 Performance


(THB mn) FY 2012/13 FY 2011/12 % YoY 4Q 2012/13 3Q 2012/13 % QoQ 4Q 2011/12 %YoY

Revenue* 2,838 1,977 44% 691 761 -9% 473 46%

Cost of sales 1,289 1,295 0% 311 322 -3% 341 -9%

Gross profit 1,548 682 127% 380 439 -13% 132 189%

EBITDA 1,289 526 145% 315 376 -16% 87 263%

Net profit 908 278 226% 224 271 -17% 35 543% Gross profit margin 55% 34% 55% 58% 28%

EBITDA margin 45% 27% 46% 49% 18%

Net profit margin 32% 14% 32% 36% 7%

FY 12/13 Revenue Breakdown FY 12/13 Net Profit Breakdown

BTS-related Media

78%

Office Building & Other Media

8%

* Excludes other income

Section 2: Financial Performance

6%


50%

BTS-related Media

44%

Modern Trade Media

25%

27%

15%

54%

53%

36%

36%

33%

74%

72%

44%

47%

42%

82%

82%

4Q 11/12

3Q 12/13

4Q 12/13

121

75

41

17

199

108

52

22

182

95

51 33

Train Station Merchandising Others

4Q 11/12

3Q 12/13

4Q 12/13

255 381 361

1,143

1,422

-

200

400

600

800

1,000

1,200

1,400

1,600

4Q 11/12 3Q 12/13 4Q 12/13 FY 11/12 FY 12/13

THB mn

Margins (%)

BTS-related Media


EBITDA (%) Gross Profit (%)

Scenario: % Margin at 50% conc. fee

Net Profit (%)

50% 52% 48%

26% 28% 29% 14% 14% 16%

9% 6% 7%

Revenue (THB mn) Revenue Breakdown (THB mn)


-6%

13%

7%

-5%

20%

13%

5%

29%

21%

4Q 11/12

3Q 12/13

4Q 12/13

149

19 28

246

20

68

211

20

67

Sales floor Non-Sales floor Multimedia

4Q 11/12

3Q 12/13

4Q 12/13

196 333 299

754

1,250

-

200

400

600

800

1,000

1,200

1,400

4Q 11/12 3Q 12/13 4Q 12/13 FY 11/12 FY 12/13

THB mn

Margins (%)

Modern Trade Media


EBITDA (%) Gross Profit (%) Net Profit (%)

71% 74% 76%

7% 6% 10% 22% 20% 14%

Revenue (THB mn) Revenue Breakdown (THB mn)


32%

44%

38%

61%

59%

53%

71%

69%

63%

4Q 11/12

3Q 12/13

4Q 12/13

21

1

44

0.26 3

30

-1 3

Office Buildings Mega LED CU

4Q 11/12

3Q 12/13

4Q 12/13

22

47 31

80

166

-

20

40

60

80

100

120

140

160

180

4Q 11/12 3Q 12/13 4Q 12/13 FY 11/12 FY 12/13

THB mn

Revenue (THB mn)



Revenue Breakdown (THB mn)

EBITDA (%) Gross Profit (%)

Margins (%)

Net Profit (%)

96% 94% 94%

1% 8% 6% -5%


6% n/a

381

565

1,056 440

308 1,254

500

1000

1500

2000

2500

Beginning Cash(31/3/12)

CFO Fund Raising DividendPayment

CFI Ending Cash(31/3/13)

Cash Flow Movement

FY 2012/13 Performance


THB mn CFF = 616

CapEx (THB mn)


FY 2012/13 FY 2013/14E

Platform Screen Door 193 160

BTS 29 300

Modern Trade and Others 86 80

Total 308 540

( ) ( )

293

1,815

16

21

1,005

737

1,314

2,573

FY 11/12 FY 12/13

354 578

960

1,995 1,314

2,573

FY 11/12 FY 12/13

Current Ratio

FY 12/13: 2.7x FY 11/12: 1.0x

Return on Equity

FY 12/13: 86.2% FY 11/12: 78.8%

Key Financial Ratios

Assets Breakdown (THB mn)

FY 2012/13 Balance Sheet


Liabilities and Equity Breakdown (THB mn)

Current assets

Non-current Assets

Current liabilities Non-current liabilities

Equity

Return on Assets

FY 12/13: 46.7% FY 11/12: 21.3%

73%

27%

78%

22%

77%

22% 1%

29%

70%

1%


Business Updates


Business Updates

AIRPORT LINK

MODERN TRADE

BTS

OUTDOOR LED

4Q 12/13

Progress

120 additional LCD in-train from 20 new single cars

PSD: Siam Station Level 2 completed

Termination of Consulting Service Agreement with VGI Advertising China Co., Ltd. effective Feb 2013

Change of business nature of VGI China

Selling agent

6 additional locations: 1) Palladium 2) Wangburapha 3) Rama 9 4) RCA 5) Surawong 6) Nana

Selling agent

9 trains, train body wrap, LCD in-train media, and 8 stations

Contract expires in October 2021

Section 3: Business Updates

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


2.5x Capacity Increase from the New Package

2.5x capacity increase

Business Updates: Platform Truss LED


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.

Business Updates: Modern Trade Expansion

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*

Modern Trade Growth

Modern Trade Retailer Growth

14

* Data includes only large and medium formats as of 31 Mar 2013


Business Updates: Modern Trade Expansion


Modern Trade 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



Q&A

APPENDIX


Key Financial Ratios


18 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% 13.9% 12.3%

Return on Equity (%) 86.2% 78.8% 39.8%

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

4q & fy 12/13 earnings presentation - listed...

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