Prepared by Investor Relations Department VGI Global Media Plc. VGI Global Media Plc

Transcription

1 1Q 2018/19 Analyst Presentation 15 August 2018

2 Disclaimer 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. 2

3 Agenda Section 1 1Q 2018/19 Financial Performance Section 2 Business Update 3

4 1Q 2018/19 Overview PROFIT AND LOSS STATEMENT (THB mn) 1Q 17/18 4Q 17/18 1Q 18/19 QoQ (%) YoY (%) Operating revenue 852 1,128 1, % 26.5% Cost of sales % 10.1% Gross profit % 38.2% EBITDA % 43.9% Adjusted EBITDA % 50.3% EBIT % 53.0% Interest expense % -33.5% Tax % 50.4% Net Profit % 49.4% Adjusted net profit % 58.4% Gross profit margin 58.2% 64.0% 63.6% EBITDA margin 41.4% 46.4% 47.1% Adjusted EBITDA margin 42.3% 47.4% 50.3% Net profit margin 20.5% 25.5% 24.3% Adjusted net profit margin 22.5% 27.1% 28.2% 1 Adjusted for share of investment in JV and associates and non-recurring expenses. 2 As shown in financial statement, excluding minority interest. 3 Net profit excludes minority interest, is adjusted for amortisation of PPA in MACO, non-recurring expenses and share of investment in JV and associates. 1Q 2018/19 REVENUE CONTRIBUTION TRANSIT THB 620mn 57.6% THB 1,077mn Section 1: 1Q 2018/19 Financial Performance OUTDOOR THB 284mn 26.4% OFFICE & OTHER THB 93mn 8.6% DIGITAL SERVICES THB 80mn 7.5% KEY FACTORS Further increase in revenue of 26.5% YoY. The strong growth is driven by the robust performance across OOH media. Gross profit margin significantly increased from 58.2% to 63.6% due to high sales despite increase in cost from Transit media concession fee, cost related to the launch of 35 digital billboards and consolidation effect of Co-Mass by MACO. EBITDA climbed considerably by 43.9% as a result of the continuously positive performance. Net profit increased by 49.4% YoY to THB 261mn. 4

5 Revenue by Business Units TRANSIT MEDIA REVENUE (THB mn) Driven by strong organic growth, higher utilisation rate from digital media and merchandising spaces in particular as well as benefit from O2O Solutions % YoY O2O SYNERGIES ON TRANSIT MEDIA OFFICE & OTHER MEDIA REVENUE (THB mn) Higher utilisation rate as well as price increases. In addition, VGI recognised more revenue from new media under the Other media % YoY 93 1Q 2Q 3Q 4Q 1Q OUTDOOR MEDIA REVENUE (THB mn) 2017/ /19 1Q 2Q 3Q 4Q 1Q 2017/ /19 DIGITAL SERVICES REVENUE (THB mn) Driven by the ongoing revenue recognition of 35 digital screens as well as consolidation of Co-Mass by MACO % YoY Lower revenue from project management fee % YoY Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2017/ / / /19 5

6 Balance Sheet & Cash Flow ASSETS BREAKDOWN (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) 9,632 16,886 10, % Current assets 9,632 16,886 2,124 1, % 9.8% Current liabilities Non-current liabilities 3, % 2,048 1, % 17.2% 13, % Equity 5, % 5, % Non-current assets 5, % CASH FLOW (THB mn) 31 March June Beginning cash (Restated) (31/3/2018) 347* (250) (128)** CFO CFI CFF Ending cash (30/6/2018) *After tax and net tax refund (THB -40mn) and interest expense (THB -15mn) **Included translation adjustment of (THB 0.1mn) Section 1: 1Q 2018/19 Financial Performance 31 March June 18 IB Debt THB 1,763mn THB 1,798mn D/E ratio 0.3x 0.1x CAPEX (THB mn) Actual Target 1Q 18/19 FY 18/19 Transit Media Office & Others Media Total VGI Outdoor Media Digital Services Total VGI, MACO & Rabbit 58 1,000 6

7 Agenda Section 1 1Q 2018/19 Financial Performance Section 2 Business Update 7

8 Business Update An acquisition of Kerry Express (Thailand) TRANSACTION DETAILS % of investment 23% of total shares Total investment Source of funds POST VGI SHAREHOLDING STRUCTURE BTS THB 5,901mn Cash from proceed from PP-1 and VGI-W1 Public KERRY Express (Thailand) 68.7% % 1.4% 2 SERVICE CHANNEL B2B B2C KERRY BUSINESS Kerry is the No. 1 private express delivery services in Thailand, with a network of more than 1,200 services points nationwide and more than 6,000 delivery vehicles. delivering parcels from company to various places such as financial institutions, law firm, retail shops and etc. delivering parcels from e-market place to the individual shoppers Remark: VGI total shares = 8,556,680,098 shares, which based on shares after exercise of VGI-W1 and subscription of PP by Kerry. 1 BTS includes 45.0% of BTSC, 23.1% of BTSG and 0.6% from Kanjanapas Family 2 Kerry Express includes 1.3% of KLN Logistics, 0.1% of Siam Chao Phraya Express and Gather Excellence VGI C2C delivering letters and parcels from online retailers to individual consumers NETWORK AND CHANNEL Deliver more than 800,000 parcels per day 6,000 delivery vehicles 700 distribution centers >2,500 services points at alliance shops such as Section 2: Business Update 8

9 Update on Exercise of VGI-W1 and Issuance of VGI-W2 Total unit : EXERCISE OF VGI-W1 1,716mn units ISSUANCE OF VGI-W2 KEY TERMS AND CONDITIONS Total exercise : 1,231mn units Ticker : VGI-W2 Total proceed received : THB 8,618mn (72% of total) Terms : 4 years Exercise details by round : Round # of shares THB mn % of total % % 16 1,017 7,121 59% ,429 12% XW date : 14 August 2018 Expiration date : In 2022 Exercise period : Quarterly basis Warrant price : Free Note: Total VGI shares after exercise of VGI-W1 and PP to Kerry is 8,557mn shares. Allocation : Allocation ratio : No. of warrant : Exercise price : To existing shareholders 5 shares : 1 warrant Up to 1,808,296,751 units THB 10 per share Exercise ratio : 1 : 1 Expected proceeds: THB 18,083mn Section 2: Business Update 9

10 Business Update Trans.Ad Solutions Co., Ltd. and Roctec Technology Ltd. TRANSACTION DETAILS MACO, through our wholly-own subsidiary Eye On Ads Co., Ltd., to acquire 81.65% of Trans.Ad Solutions Co., Ltd. Trans.Ad will use investment funds from MACO to invest 89.0% of Roctec Technology Ltd. Total value Target Source of funding THB 388mn Trans.Ad Solutions Co., Ltd. Roctec Technology Ltd. Bank loans and proceeds from issuance and allocation of newly issued shares (Right Offering). Maximum proceeds: THB 1,375.6mn TRANSACTION RATIONALE Obtain expertise in media solutions, system integrations, networking infrastructures, securities and maintenances of asset. Understand and Capable of future business development process in terms of hardware, system integration and service on large-scale public transportations, Government Organization and Advertisement industry. Capable to provide Communication Networks between multiple large organizations and Manage the networks. High growth potential for expanding our business into core mass transits of ASEAN region and leverage media industry by using data benefits. completion date 26 July 2018 Section 2: Business Update 10

11 Network Developments OUT-OF-HOME MEDIA TRANSIT MEDIA Station Sponsorship Campaign AIS at Siam Shopee at Phrom Phong and Victory Monument Line Mobile at Mo Chit and Sala Daeng Krung Thai at Ploen Chit AEON brand at Asok McDonald s at National Stadium Netflix at Thong Lo Werk Co-working Space at Ratchadamri OFFICE MEDIA Total 175 office buildings (1,350 digital screens) DIGITAL SERVICES OFFLINE PAYMENT 9.3mn cardholders 6,400 retail points 177 brand partners ONLINE PAYMENT 3.4mn Rabbit LinePay members 991 merchants MICRO LOAN SERVICES THB 1,380mn Section 2: Business Update 11