vgi global media plcvgi.listedcompany.com/misc/presentation/20160516... · 5/16/2016 · total...

VGI Global Media Plc

2015/16 Earnings Presentation 16 May 2016

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

Section 1 Media Industry Overview

Section 2 2015/16 Key Milestone & Financial Performance

Section 2.1 2015/16 Key Milestone

Section 2.2 2015/16 Financial Performance

Section 3 Business Update & 2016/17 Outlook

Agenda

TV, 46.4%

Digital TV, 17.1%

Newspapers, 10.0% Cable TV, 5.0%

Radio, 4.8%

Cinema, 4.4%

Transit, 3.9%

Internet, 1.0% In-Store, 0.4%

Outdoor, 3.7%

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%

Media Industry Overview 2015/16 THAI ADSPEND VALUE (THB bn)

4

2014/15 2015/16

1 FMCG 40% 40%

2 MOTOR VEHICLES 8% 8%

3 COMMUNICATIONS 7% 6%

4 GOVERNMENT & COMMUNITY ANNOUNCEMENT

6% 6%

5 LEISURE 5% 5%

TOP 5 65% 65%

OTHERS 35% 35%

2014/15 2015/16

1 FMCG 39% 38%

2 COMUNICATIONS 8% 7%

3 REAL ESTATE 3% 6%

4 RETAIL SHOPS AND STORES

3% 6%

5 MEDIA & MARKETING

5% 5%

TOP 5 58% 61%

OTHERS 42% 39%

2015/16 MEDIA ADSPEND (THB bn)

Source: The Nielsen Company (Thailand) Limited.

THB 120bn

*Includes Newspaper, Magazines and Radio ** Excludes Modern Trade Media Revenue

OVERALL MEDIA INDUSTRY VGI MASS TRANSIT

Section 1: Media Industry Overview

Magazines, 3.3%

TOP 5 ADSPEND BY BUSINESS SEGMENT 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 26,407

28,894 30,869

32,200 29,250

31,521 30,782 30,774

26,733

460 486 486 422 476 490 542 486 499 537 520 500

Q113/14

Q213/14

Q313/14

Q413/14

Q114/15

Q214/15

Q314/15

Q414/15

Q115/16

Q215/16

Q315/16

Q415/16

Total Industry AdSpend (THB mn) VGI Revenue* (THB mn)*






Agenda

6

STRATEGIC DEVELOPMENTS

2015/16 Key Milestone

Section 2.1: 2015/16 Key Milestone

1Q 15/16: ● Secured advertising contract on 7 green line extension stations

● Expanded our footprint into aviation media by investing 20% of AERO MEDIA 3Q 15/16: ● Expanded our network into residential buildings by becoming an exclusive sale agent for ARTISTA 4Q 15/16: ● 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.

OUR NETWORK

RAIL MASS TRANSIT: 52 BTS trains 30 BTS stations > 4,000 static displays 2,029 digital screens

OFFICE BUILDINGS: 135 grade A&B office buildings 1,091 digital screens

CONDOMINIUMS: 219 residential buildings 549 digital screens

AVIATION: 13 airports 342 LCD screens 4,500 trolleys 57 aerobridges

OUTDOOR: 658 billboard & networking billboard 678 street furniture

7

CONSOLIDATED P&L SNAPSHOT (FINANCIAL STATEMENT)

2015/16 Overview

Section 2.2: Financial Performance

(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%

(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%

CONSOLIDATED P&L SNAPSHOT (W/O MODERN TRADE MEDIA)

86.1%

13.9%

2015/16 REVENUE CONTRIBUTION

88.2%

11.8%

2015/16 REVENUE CONTRIBUTION

BTS-related media BTS-related media

Office building & other media

Office building & other media

THB 2,106mn THB 2,056mn

*excludes extra items

8

BTS-RELATED REVENUE (THB mn) BTS-RELATED REVENUE BREAKDOWN (THB mn)

OFFICE BUILDING & OTHER REVENUE (THB mn)

Financial Performance by Sector

OFFICE BUILDING & OTHER REVENUE BREAKDOWN (THB mn)

1,805 1,813

2014/15 2015/16

+0.4% YoY 825

580

401

757

597

459

Train Station Merchandising andOthers

2014/15

2015/16

45.7% 41.7%

32.1% 33.0%

22.2% 25.3%

163

26

201

42

Office Building Other Media

2014/15

2015/16

86.2% 32.8% 82.7%

25.3%

189

243

2014/15 2015/16

+28.6% YoY

13.8% 17.3%


+23.6% YoY

+61.4% YoY

2,244 2,262

1,042 837

31-Mar-15 31-Mar-16

1,829 2,242

24

35 1,433 822

31-Mar-15 31-Mar-16

9

ASSETS BREAKDOWN (THB mn)

32%

68%

LIABILITY & EQUITY BREAKDOWN (THB mn)

CASH FLOW (THB mn)

Balance Sheet & Cash Flow

Non-current assets

Current assets 27%

73%

3,286 3,099

Equity

Non-current liabilities

Current liabilities

55%

1%

44%

72%

1%

27%

3,286 3,099

2015/16

BTS-related Media 93

Office building & Others 65

Total 158

529 355

785

65

158 69

515

290

Beginningcash

(31/03/15)

CFO Asso.comand JV

(Invt.&Loanto &Sales)

CapEx Int. Income& oth.

DividendPayment

CFF (S/T repay)

Ending Cash(31/03/16)

CAPEX (THB mn)


CFI of THB 154mn

CFF of THB 805mn






Agenda

11

>37.42% in

MACO

178 mega

billboards

480 networking

billboards

678 street

furniture

56% GP margin

63% market share (Grade A&B buildings)

>650,000 viewers reached daily

135 office buildings

219 condominiums

60% GP margin

55% market share

>700,000 viewers reached daily

Long term contracts end 2029 & 2042

4X expected

capacity

70% GP margin

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)

1st strategic step proven winner growth prospects

20% in Aero Media

>115mn viewers

reached annually

342 LCD screens

4,500 trolleys

57 aerobridges

transit office outdoor aviation digital activation

Nationwide Integrated Media Platform “within 2 years”

Business Update

Section 3: Business Update & 2016/17 Outlook

founder group, 13.79%

Acquire additional 12.46% from

founder group

12

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.

*SPA: Sell and Purchase Agreement

acquire 375mn shares from major shareholders

number of shares 375mn shares (or 12.46% of total shares)

price THB 1.10 per share

total investment 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%)

BOD approval

16 MAR

17 MAR

Execute SPA*

30 MAY

3 JUN 8 JUL

Tender offer period

31 MAY

EGM

12.46% Acquisition

done

tender offer

number of shares up to 1,484mn shares (or 0 to 48.79%* of total shares)

price THB 1.10 per share

total investment up to THB 1,632mn

source of funds Cash flows from operation and/or credit

facilities support from financial institutions

founder group, 26.26%

pre acquisition & tender offer

post acquisition & tender offer

public, 48.79%

VGI, 24.96%

VGI, 37.42%

public, 48.79% (tender offer)

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

*Excluded the rest 13.79% of founder group.

TRANSACTION SUMMARY TIMELINE OF ACQUISITION & TENDER OFFER

PRE VS POST STRUCTURE

12.46% of founder group are:- 4.99% DCROP Group 4.15% maneerattanporn 3.32% Tansalarak


THB 3,100mn

Other 5%

BTS – Related 61% Outdoor 26%

Office Building 8%

13

VGI TARGET REVENUE (THB mn) & GROWTH (%) REVENUE BREAKDOWN (THB mn)

2016/17 VGI Targets and CapEx

3,100

1,900

800

250 150

Total Revenue BTS-RelatedMedia

Outdoor Media Office BuildingMedia

Other Media

*after elimination

*

GROWTH DRIVERS (%)

• Increase occupancy in all existing media • 7 new extension stations

BTS

• Increase package price by 20% • Increase number of buildings from 130 to

160 buildings Office Building

• Media capacity is expected to increase from THB 900mn in 2015 to THB 1,300mn in 2016.

Outdoor

• Additional revenue from Chamchuri Square, Wifi project, Empire tower, UPC Co mass and Clock Tower

Other

500

100

200

100 100

Total CAPEX BTS-RelatedMedia

Outdoor Media Office BuildingMedia

Other Media

Total CAPEX of THB 500mn, comprising VGI CAPEX of THB 300mn and MACO CAPEX of THB 200mn

+50% +5% +25% +240%

REVENUE BREAKDOWN (THB mn)


vgi global media plcvgi.listedcompany.com/misc/presentation/20160516... · 5/16/2016 · total...

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