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VGI Global Media PCL
2Q 15/16 Earnings Presentation 30 Oct 2015
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 2Q 15/16 Financial Performance
Section 2.1 BTS-related Media
Section 2.2 Office Building & Other Media
Section 2.3 Balance Sheet & Cash Flow
Section 3 Business Update
Agenda
Media Industry Overview THAI ADSPEND VALUE (THB bn)
4 Section 1: Media Industry Overview
1Q 15/16
2Q 15/16
1 FMCG 42% 42%
2 MOTOR VEHICLES 7% 7%
3 GOV & COMMUNITY ANNOUNCEMENT
5% 7%
4 COMMUNICATION 6% 6%
5 LEISURE 5% 5%
TOP 5 65% 67%
OTHERS 35% 33%
1Q 15/16
2Q 15/16
1 FMCG 42% 41%
2 REAL ESTATE 6% 11%
3 COMMUNICATION 6% 7%
4 RETAIL SHOPS/STORES
6% 5%
5 LEISURE 2% 4%
TOP 5 62% 68%
OTHERS 38% 32%
TV, 46.6%
Digital TV, 17.1%
Newspapers, 9.8%
Cable/ Satellite TV, 5.2% Radio, 4.7%
Cinema, 4.5% Magazines, 3.5%
Internet, 0.9%
Transit, 4.1%
Outdoor, 3.4%
In-Store, 0.3%
2Q 15/16 MEDIA ADSPEND (THB bn)
Source: The Nielsen Company (Thailand) Limited.
THB 30.8bn
2Q 14/15 1Q 15/16 2Q 15/16 % QoQ % YoY
TV 16.4 14.8 14.3 -3.4% -12.4%
Traditional Media* 6.1 5.6 5.5 -0.5% -9.7%
Digital TV 2.9 5.6 5.3 -5.4% 78.9%
Cable/Satellite TV 1.5 1.7 1.6 -3.7% 3.6%
Cinema 1.2 1.3 1.4 5.3% 16.0%
Transit 1.0 1.1 1.3 12.8% 31.5%
Outdoor 1.0 1.1 1.1 -3.0% 7.2%
Internet 0.3 0.3 0.3 7.3% 8.8%
In-Store 0.5 0.1 0.1 -37.3% -82.6%
Total Industry 30.9 31.5 30.8 -2.4% -0.3%
*Includes Newspaper, Magazines and Radio ** Excludes Modern Trade Media Revenue
TOP 5 ADSPEND BY BUSINESS SEGMENT
OVERALL MEDIA INDUSTRY VGI MASS TRANSIT
28,755 29,264 28,951
26,407
28,894
30,869 32,200
29,250
31,521 30,765
460 486 486 422
476 490 541
487 499 537
1Q13/14
2Q13/14
3Q13/14
4Q13/14
1Q14/15
2Q14/15
3Q14/15
4Q14/15
1Q15/16
2Q15/16
Industry AdSpend VGI Revenue**
+7.6% QoQ
+9.5% YoY
-0.3% YoY
-2.4% QoQ
THAI ADSPEND VS VGI REVENUE (THB mn)
Section 1 Media Industry Overview
Section 2 2Q 15/16 Financial Performance
Section 2.1 BTS-related Media
Section 2.2 Office Building & Other Media
Section 2.3 Balance Sheet & Cash Flow
Section 3 Business Update
Agenda
6
CONSOLIDATED P&L SNAPSHOT
2Q 15/16 Overview
Section 2: Financial Performance
REVENUE CONTRIBUTION GROSS PROFIT CONTRIBUTION
CONSOLIDATED P&L SNAPSHOT (AS IF NO MODERN TRADE MEDIA)
90%
10%
THB 537mn
96%
4%
BTS
Office Building &Other Media
THB 345 mn
2Q 15/16 1Q 15/16 %QoQ 2Q 14/15 % YoY
Operating revenue 537 499 8% 490 10%
Cost of sales 192 162 19% 125 53%
Gross profit 345 337 2% 365 -6%
EBITDA 310* 307* 1% 334 -7%
Net profit from operation
214 208 3% 243 -12%
Net profit includes extra items
259 253 3% 243 7%
Gross profit margin 64% 68% 75%
EBITDA margin 58% 61% 68%
NPAT margin from operation
40% 42% 50%
NPAT margin included extra items
48% 51% 50%
2Q 15/16 1Q 15/16 %QoQ 2Q 14/15 % YoY
Operating revenue 537 549 -2% 795 -33%
Cost of sales 192 221 -13% 361 -47%
Gross profit 345 328 5% 434 -21%
EBITDA 351 343 2% 370 -5%
Net profit from operation
214 195 9% 264 -19%
Net profit includes extra items 259 240 8% 264 -2%
Gross profit margin 64% 60% 55%
EBITDA margin 65% 62% 47%
NPAT margin from operation
40% 36% 33%
NPAT margin included extra items
48% 44% 33%
*Excluding extra items
210
143
96
190
149
106
205
160
116
Train Station Merchandising andothers
2Q 14/15
1Q 15/16
2Q 15/16
7
REVENUE (THB mn)
+8% QoQ
+7% YoY
REVENUE BREAKDOWN (THB mn)
43%
33%
24%
47%
32%
21%
43%
34%
24%
GROSS PROFIT MARGIN (%)
BTS-related Media
KEY TAKEAWAY
Section 2.1: BTS-related Media
448 445
480
2Q 14/15 1Q 15/16 2Q 15/16
76%
72%
69%
2Q 14/15
1Q 15/16
2Q 15/16
• Revenue increased by 7% YoY mainly from;
1) increase occupancy of media in BTS
2) higher occupancy in merchandising space
3) increase revenue from 7 extension stations
• Gross Profit decreased to 69% due to;
1) higher depreciation and maintenance fee of new digital media
2) rental fee of new stations
3) increase in sales and marketing promotion
37
5
45
9
47
9
Office Buildings Other Media
2Q 14/15
1Q 15/16
2Q 15/16
8
REVENUE (THB mn)
+5% QoQ
+33% YoY
REVENUE BREAKDOWN (THB mn)
OFFICE BUILDING MEDIA GPM (%)
Office Building & Other Media
OTHER MEDIA GPM (%)
Section 2.2: Office Building & Other Media
+6% QoQ
+28% YoY
-0.6% QoQ
+71% YoY
42
54 57
2Q 14/15 1Q 15/16 2Q 15/16
62%
62%
60%
30% 60%
2Q 14/15
1Q 15/16
2Q 15/16
21%
-133%
-164%
-200% -100% 0% 100%
2Q 14/15
1Q 15/16
2Q 15/16
1,829 2,156
24 24
1,433 1,431
31-Mar-15 30-Sep-15
2,244 2,373
1,042 1,237
31-Mar-15 30-Sep-15
9
ASSETS BREAKDOWN (THB mn)
32%
68%
LIABILITY & EQUITY BREAKDOWN (THB mn)
CASH FLOW (THB mn)
Balance Sheet & Cash Flow
CAPEX (THB mn)
Section 2.3: Balance Sheet & Cash Flow
Non-current assets
Current assets 34%
66%
3,286
3,611
Equity
Non-current liabilities
Current liabilities
55%
1%
44%
59%
1%
40%
3,286
3,611
614 673
188
84 59* 18
172
0
100
200
300
400
500
600
700
800
900
1000
Begining 30/6/2015
CFO Investment in other
businesses
CapEx Interest/ Dividend income &
Others
CFF (Dividend
paid)
Ending 30/9/2015
1Q 15/16 2Q 15/16 1H 15/16 FY 15/16E
BTS-related Media 2 52 54 122
Office building & Others 12 28 40 146
Total 14 80 94 268
Strictly Confidential
CFI: THB 43mn
* Net cash from selling assets in Big C of THB 21mn
Section 1 Media Industry Overview
Section 2 2Q 15/16 Financial Performance
Section 2.1 BTS-related Media
Section 2.2 Office Building & Other Media
Section 2.3 Balance Sheet & Cash Flow
Section 3 Business Update
Agenda
11
Business Update BTS-related Media
Section 3: Business Update
UPGRADING BTS LCD SCREENS
• Upgraded LED screens from 17 inches to 21 inches, totaling
360 screens across 15 trains in 2Q 2015/16.
12
Business Update Office Building Media
Section 3: Business Update
LARGEST BUILDING PORTFOLIO IN THAILAND
• Added 15 new contracts into the office building portfolio,
surpassing the year-end target to acquire 10 additional
contracts. (total of 118 buildings) in 2Q 15/16
• The Company aims to secure 12 additional office building
contracts within December 2015, bringing the total number
of office building contracts to 130.
13
Business Update Other Media – Chamchuri Square
Section 3: Business Update
CHAMCHURI SQUARE
• Successfully installed LCD and LED screens inside and outside the building
• Expected to generate revenue in 3Q 15/16