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PIONEERING SOLUTIONS FOR TOMORROW
VGI INVESTOR PRESENTATION MAY 2019
DISCLAIMER
EVOLUTION FROM TRADITIONAL ADVERTISING TO “O2O SOLUTIONS”
1999 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
>1,485,000 31 50>1,500 150
>110,000 >6,000 >1,000
>20,000,000 >3,500 >450
NO.1 OUTDOOR
>8,200,00030 208>6,000 >2,500
NO.1 TRANSIT NO.1 BUILDING
>500,000 >600 >2,200
>1,200,000 >20,000
NO.1 DELIVERY
PAYMENT
12mn Cards 4.0mn Members1.2mn Members5.5mn Users
LOGISTICS
2012
2013
2016
2018
2015
2006
VGI BUSINESS MODEL
O2O SOLUTIONS
R&F CONVERSIONIMPACT LOYALTYPAYMENTENGAGEMENT
DATA
ENGAGEMENT CONVERSIONAWARENESS
ADVERTISING PAYMENT LOGISTICS
DATA
1.2mn Members
12mn Cards 5.5mn Users
4mn Members
18mn Reachable
6mn 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
7mn Travelers
30mn Riders
Chinese audience1On boarding process to be database of Rabbit
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 = 0.6%
OOH CAGR1 = 8.8%
Increasing mobility Increasing urbanization Fragmentation of other broadcasting channels
Improving of OOH Media(Digitalization, data, planning tools,
mobile connection etc.)
ONLINE CAGR1 = 58.7%
INDUSTRY CAGR1 = 3.3%
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 – 2018 ACHIEVEMENTS 2021 STRATEGIC EXPANSION
TARGETING 10 MILLION MAU IN 2021
STRATEGIC PARTNERSHIP PROVED TO ACCELERATE GROWTH IN USER BASE
RABBIT CARD RABBIT LINEPAY
PAYMENT
+23.2% YTD
+83.0% YTD
IMPROVE USER EXPERIENCES: EASIER ACCESS TO OUR SERVICES
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PAYMENT
USER INTERFACE – OLD VERSION USER INTERFACE – NEW VERSION
NETWORK EXPANSION TO ACCOMMODATE THE RISE OF E-COMMERCELOGISTICS
125XKERRY PARCEL DELIVERED DAY
C2C70%
C2C65%
C2C50%
B2C26%
B2C30%
B2C40%
40,000
C2C67%
C2C50%
C2C50%
B2C31%
B2C40%40,000
75,000
500,000
1,200,000
8,000
KERRY PARCEL SHOP
KERRY TRUCK
NEW PRODUCT DEVELOPMENT: SMART SAMPLING
AWARENESS TRIAL INSIGHT
BRAND COMMUNICATE CUSTOMER FEEDBACK FOR ACTIONABLE INSIGHTS PRODUCT COMMUNICATE
RETARGETING AUDIENCES
LOGISTICS
O2O SHOWCASES
50%
1.7X
44%
50%
ONLINE STREAMING
SERVICE
APPLICATION
TELECOM
MOBILE PHONE
SUCCESSFUL NEW PRODUCT LAUNCH FULL COVERAGE OF BKK AUDIENCES
GAIN MORE SUBSCRIBER DRIVE PURCHASE LIKELIHOOD
1.5X
22%100%
98% 20%
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
ANYMIND GROUP AT A GLANCE
HISTORICAL REVENUE OF ANYMIND GROUP (USD mn) PUBLISHER PARTNERS
11MARKETS
ACROSS ASIA
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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Golink
70%
Verisign
100%
SRPB
45%
Ads Cuisine
100%
MSD
100%
PLANB AT A GLANCE
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–
–
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3
4
6
5
2
1
Source : SETSMART as of 15 March 2019
Outdoor and Modern Trade Airport Engagement Marketing
and Online International Business
VerisignSRPBAds Cuisine
MSD
GolinkMaxview
Mercy PlusThe One Plus Triple Play
WPS
Bright Sky
TunaSign Work
BNK 48BNKPASL
APL
Digital FactoryPlan B ElevenPlan B
OOH MEDIA OPERATES IN THAILAND IN VARIOUS SEGMENTS
TRANSFORMING MARKETING LANDSCAPE
100% Bangkok TakeoverBTS, Bus, Digital &Static Billboards, Buildings, Airports
POWERFUL CONSOLIDATED OOH NETWORK
70% Nationwide CoverageDigital & Static Billboards,Malls, Kerry Trucks, Airports
UNIQUE MARKETING ENGAGEMENT
Awareness
Engagement & Loyalty
Retail VGIRabbit partners
SPIPayment Logistics
FLEXIBLE TRANSACTION PLATFORMS
Rabbit Services Kerry Services Direct to Consumer Music Sport
DATA AND DATA MANAGEMENT PLATFORM
Retarget
Conversion
O2O SOLUTIONS
COLLABORATION HORIZON
DELIVER OPTIMUM VALUE OF OOH NETWORK
CENTRALISING FOR COST EFFICIENCY
EXPAND OOH MEDIA AND EXPLORE NEW MARKETING CHANNELS
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SHORT TERM MEDIUM TERM LONG TERM
PARTNERSHIP WITH I-CLICK INTERACTIVE ASIA GROUP
TRANSACTION SUMMARY
Entered into JV agreement to establish “V-Click Technology Company Limited”
% of holding
Registered capital:
Source of fund:
SHAREHOLDING STRUCTURE
RATIONALE AND SYNERGIES OF THE JOINT VENTURE
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• China Solutions:
• O2O Solutions:
• Mobile Application:
POTENTIAL PARTNERS
2016 2017 2018
I-CLICK AT A GLANCE
HISTORICAL REVENUE OF I-CLICK (USD mn) I-CLICK’S SHOWCASE
87% 126%11.9 X
Data
Technology
Media
Advertisers &Marketers
Trading Desks
MultinationalCustomerCoverage
2,500+
Customers
ChineseConsumer
Dataset~780mn
ACQUISITION OF 25.0% IN ADS CHAO PHRAYA (“ACP”)
TRANSACTION SUMMARY
RATIONALE
% of investment
Total shares acquisition
Total investment
VGI General Mandate
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PRE SHAREHOLDING STRUCTURE
POST SHAREHOLDING STRUCTURE
ADS CHAO PHRAYA AT A GLANCE
2016 2017 9M2018
HISTORICAL REVENUE OF ACP (THB mn)NO. OF PIERS NO. OF BOATS
2226
3060
NO. OF BILLBOARDS
>225>150
80
FINANCIAL
VGI FINANCIAL PERFORMANCE
2015/16(restated)
12016/17 2017/18 2018/19 YoY (%)
INCOME STATEMENT (THB mn)
BALANCE SHEET (THB mn)
CASH FLOW (THB mn)
PER SHARE DATA (THB/ share)
KEY RATIOS
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ADVERTISINGTHB 3,847mn (74.6%)
TRANSIT DIGITAL SERVICES
OFFICE & OTHEROUTDOOR
THB 5,158mn
2018/19 HIGHLIGHTS
FINANCIAL PERFORMANCE KEY OPERATION METRICS
Profitability55.7%
40.9%
21.4%
Offline Payment11.0
5.5
Logistics>200,000
Revenue+31.0%
Net Profit +30.1%
Office1801,358
Outdoor>2,00035
2018/19 OVERVIEW
THB (mn) 2017/18 2018/19 YoY (%)PROFIT AND LOSS STATEMENT
2018/19 REVENUE CONTRIBUTION
TRANSIT DIGITAL SERVICES
OFFICE & OTHEROUTDOOR
THB 5,158mn
KEY FACTORS•
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REVENUE BY BUSINESS UNITS
TRANSIT MEDIA REVENUE (THB mn)
+1.0% YoY+4.1% YoY
OFFICE & OTHER MEDIA REVENUE (THB mn)
+22.9% YoY +8.6% YoY
REVENUE BY BUSINESS UNITS
OUTDOOR MEDIA REVENUE (THB mn)
DIGITAL SERVICES REVENUE (THB mn)
+246.8% YoY
12.6% YoY -20.0% YoY
+290.9% 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
61.5%
17.2%21.3% 72.5%
7.1%
20.4%
22,687
9,632
Actual Target
2018/19 2018/19
Total VGI
Total
9,632
22,687
38.5%
61.5%
23.5%
76.5% Non-current assets
CASH FLOW (THB mn)
2019/20 VGI TARGETS AND CAPEX
REVENUE 6,000 - 6,200mn
EBITDA margin 40 – 45%
NPAT margin 20 - 25%
CAPEX700mn
APPENDIX
SHARE AND DIVIDEND INFORMATION
SHARE INFORMATION (AS OF 29 MARCH 2019)
SHARE PRICE MOVEMENT (AS OF 29 MARCH 2019)
DIVIDEND INFORMATION
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Payout Ratio
9.05
0
500
1,000
1,500
2,000
2,500
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
12-Oct-12 12-Oct-13 12-Oct-14 12-Oct-15 12-Oct-16 12-Oct-17 12-Oct-18
VGI TURNOVER (RHS) SET Index (rebased) VGI TB
ADTV = THB 118mn
ADVERTISING: TRANSIT MEDIA
TRANSIT MEDIA PROFILE OUR PRODUCTS
KEY FINANCIAL HILIGHTS
57.5%
NPAT margin 20 - 25%
CAPEX700mn
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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8 YRS CAGR: +12.4%2017/18Revenue Contribution
ADVERTISING: TRANSIT MEDIA
EXISTING LINES AS OF 2018/19 EXISTING LINES BY OPERATOR
43 35 8
48.9 44.2 28.5
TOTAL DISTANCE: 121.6KM
743,223 378,167 70,000
TOTAL AVG. WEEKDAY RIDERSHIP: 1,191,390
ROUTE DISTANCE NO. OF STATION OPERATING
DARK GREEN
(CORE)
LIGHT GREEN
(CORE)
LIGHT GREEN
(EXTENSION)
DARK GREEN
(EXTENSION)
LIGHT GREEN
(EXTENSION)
DARK GREEN(EXTENSION)
ROUTE DISTANCE NO. OF STATION OPERATING
BLUE
PURPLE
ROUTE DISTANCE NO. OF STATION OPERATING
AIRPORT LINK (RED LINE)
ADVERTISING: TRANSIT MEDIA
ADDITIONAL LINES IN 2021/22 FUTURE LINES IN 2021/22
124.7 125.4
104 67
TOTAL DISTANCE: 250.1KM
TOTAL STATION: 104
BTS’SFOCUS ROUTE DISTANCE NO. OF
STATION OPERATING
GREEN (NORTHERN)
PINK
YELLOW
GREEN (WESTERN)
LRT
GREY (I)
OTHER ROUTE DISTANCE NO. OF STATION OPERATING
BLUE
BLUE
BLUE
DARK RED
DARK RED
LIGHT RED
LIGHT RED
PURPLE(SOUTHERN)
ADVERTISING: TRANSIT MEDIA
4.0X EXPECTED INCREASE IN BTS TRAIN CAPACITY
TOTAL OF 836 TRAINS CAPACITY TOTAL OF 147 STATIONS CAPACITY2018/19 2022/23 E
CORE + EXTENSION 208 236
GREEN (SOUTHERN) NONE 60
GREEN (NORTHERN) NONE 84
PINK NONE 168
YELLOW NONE 120
GREEN (WESTERN) NONE 32
LRT NONE 64
GREY (PHASE I) NONE 72
TOTAL 208 836
2018/19 2022/23 E
CORE + EXTENSION 30 34
GREEN (SOUTHERN) NONE 9
GREEN (NORTHERN) NONE 16
PINK NONE 30
YELLOW NONE 23
GREEN (WESTERN) NONE 6
LRT NONE 14
GREY (PHASE I) NONE 15
TOTAL 30 147
4.9X EXPECTED INCREASE IN BTS STATION CAPACITY
Secured668 carriages
UnderNegotiation168 carriages
+4.0x
Secured108 stations
UnderNegotiation39 stations
+4.9x
ADVERTISING: OUTDOOR MEDIA
MACO’S PRODUCTSI. BILLBOARD
II. STREET FURNITURE
III. SYSTEM INTEGRATION AND DIGITAL SERVICES
INTERNATIONAL NETWORK
INVESTMENT & ACCOUNTING METHOD
OUTDOOR MEDIA PROFILE
KEY FINANCIAL HIGHLIGHT
DOMESTIC NETWORK
2017/18 Revenue Contribution
24.3%
BKK & VicinitiesNationwideCBD LEDLCD screenStreet furniture
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MRT SBK line KLIA terminal 1&2MRT North-South line
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ADVERTISING: OUTDOOR MEDIA
Existing Network Target 2018
LED SCREEN IN UPCOUNTRY (HATYAI PROVINCE) MEDIA IN MALAYSIA
KEY GROWTH AND DEVELOPMENT
2.INTERNATIONAL MARKET EXPANSION
3.STRATEGIC PARTNERSHIP
1.DIGITISATION
4.ADAPTIVE MEDIA CAMPAIGN
Multi-platform Big Data
MACO VGIMulti SignCo-Mass
RABBITTransadRoctec
ADVERTISING: OFFICE BUILDING & RESIDENTIAL MEDIA
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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I. MEDIA INSIDE ELEVATORS AND OFFICE BUILDING AREAS
II. MEDIA INSIDE ELEVATORS AND RESIDENTIAL BUILDING AREAS
REVENUE CAGR (8 YRS) : 37.2%2017/18
Revenue Contribution
8.6%
ADVERTISING: OFFICE BUILDING & RESIDENTIAL MEDIA
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NEW OFFICE SUPPLY IN BANGKOK TO DOMINATE OFFICE BUILDING MARKET IN BANGKOK
WELL-POSITIONED TO SECURE PARTNER’S REMAINING CONDO CAPTURING ALL CONSUMER PROFILE INCOME AND GEOGRAPHIC
Office Building
Residential
TO BE CAPTUREDPotential buildings
Total 439 Buildings
ARTISTA’s network
583,700 sq.m.
ADVERTISING: AVIATION MEDIA
HISTORICAL NUMBER OF PASSENGERS
AERO MEDIA’S PRODUCTSAVIATION MEDIA PROFILE
RIGHTS & NETWORK
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INVESTMENT & ACCOUNTING METHOD
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LENGTH OF CONTRACT
13YRS CAGR: 10.7%
I. LEDS SCREEN
III. JET BRIDGES
IV. TROLLEYS V. WEBSITE MANAGEMENT
II. MEDIA ON PLANE
ADVERTISING: ACTIVATION MEDIA
ACTIVATION MEDIA PROFILE
RIGHT AND NETWORK
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INVESTMENT & ACCOUNTING METHOD
Investment: 40.0% in Demo Power (Thailand)Accounting Method: Equity sharing
DEMO POWER SERVICES, PARTNERS AND BRANDS
Non-exclusivity location: > 650 stores
Exclusivity locations: > 360 stores
II. BUSINESS PARTNERS
III. BRANDS
UPSIDE: ADDITIONAL CONSUMER INTERACTION (PEOPLE/DAY)
15.0X increased>1,600,000
PAYMENT
OFFLINE PAYMENT: RABBIT CARD
INVESTMENT & ACCOUNTING METHOD
PAYMENT PRODUCTS
I. RABBIT CARD
II. RABBIT LINE PAY
Rabbit CardsRetailer Points
Line UsersRabbit Line PayUsersOnline Merchants
CURRENT VS FUTURE’S RIGHT AND NETWORK
ONLINE PAYMENT: RABBIT LINE PAY
INVESTMENT & ACCOUNTING METHOD
CURRENT VS FUTURE’S RIGHT AND NETWORK
PAYMENT
ONLINE INSURANCE BROKER SERVICE PRODUCTS
I. ONLINE INSURANCE BROKER
INVESTMENT & ACCOUNTING METHOD
CURRENT VS FUTURE’S SERVICE AND NETWORK
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MICRO LOAN THROUGH THE JOINT VENTURE WITH AEON
INVESTMENT & ACCOUNTING METHODII. AEON RABBIT MEMBER CARD
Insurance companies in-services
LOGISTICS
DELIVERY SERVICES PORTFOLIO SERVICES PRODUCTS
INVESTMENT & ACCOUNTING METHOD
SERVICES CHANNEL
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NETWORK
COMPANY STRCUTURE
VGI
ADVERTISING PAYMENT LOGISTICS
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ORGANISATION STRUCTURE