VGi GLOBAL MEDIA PCL. No. 1 Out-of-Home Media Company in Thailand. 2016/17 Factsheet

Transcription

1 VGi GLOBAL MEDIA PCL No. 1 Out-of-Home Media Company in Thailand 2016/17 Factsheet

2 VGi Global Media PCL 2

3 KEY INVESTMENT FEATURES Exclusive long-term mass transit contracts with consistent growth Unique, long-term contract portfolio. High barriers to entry from exclusive mass transit contracts with parent company BTS in core CBD areas. More than 80% of VGI s current profit is secured by a mass transit concession with more than 12 years remaining Ongoing, resilient mass transit ridership growth of 9% per annum since inception A unique play on the most attractive advertising media segments Possesses differentiated and market-leading assets (THB 6.2bn of cross-media capacity) Daily audience reach of over 3mn people nationwide Focus on the fastest growing media segments. OOH and Online have grown on average 10% and 28%, respectively in the past 5 years The largest, the most profitable OOH media company in Thailand and among the top 5 most profitable OOH media companies in Asia No. 1 listed OOH media company on SET by market capitalisation of THB 39,124mn (USD 1,153mn) 1 with approximately 42% market share in 2016/17 2 Long-term contracts allow capital investment and superior margins. VGI recorded EBITDA margin of 45% and net profit margin of 27% in 2016/17. Unlocking future growth catalysts Future growth underpinned by relationship with BTS and its preeminent role in mass transit development in Thailand. 4-5X expected increase in transit media capacity by 2021/22. Upside potential from increased digitisation of our media platform and M&A opportunities Synergies with Rabbit Group. The only media company in Thailand to offer measureable and targeted multimedia advertising through data analytics. Poised to benefit from growth multipliers when media spending recovers 1 Exchange rate at THB per USD as of 30 June The Nielsen (Thailand) Co., Ltd. 3 Company s source, press releases and Bloomberg VGi Global Media PCL 3

4 COMPANY OVERVIEW VGI Global Media PCL (VGI) was established in 1995 and is a SET-listed company and constituent member of the SET100 Index. VGI is the no.1 company in Out-of- Home ( OOH ) media in Thailand. VGI is transitioning into the country s first Data Centric Media Hypermarket, pairing its integrated cross-media platform with data analytics to deliver targeted advertisements and enhancing VGI s competitive edge by providing greater value to brands. OOH Media Business With over 22 years of experience with OOH media - this is VGI s core business. VGI has expanded its presence within OOH media to 5 principal OOH media segments: 1) Transit, 2) Outdoor, 3) Office, 4) Aviation and 5) Activation. VGI s Well Diversified OOH Portfolio Digital Services Business In 2016/17, VGI successfully acquired Rabbit Group. Rabbit Group s original business was operating the Rabbit payment card for use on the Skytrain system. It has since evolved into a total digital lifestyle solutions provider with 3 key business units: 1) Offline & Online Payments, 2) Services and 3) Media. Segment Market Share Network Transit 60% Thailand: 30 stations, 208 carriages >6,000 media displays >8,800 sq.m. retail spaces Malaysia: 31 stations, 232 carriages Office 75% 404 buildings Outdoor 30% >2,200 billboards Aviation 20% Activation 70% >1,000 stores Digital Services 13 airports, 342 LCD displays 57 jet bridges, 7,000 trolleys 7.3mn card users 1.7mn Rabbit LinePay users 900mn AEON Rabbit s loan portfolio VGi Global Media PCL 4

5 FIVE-YEAR STRATEGY FIVE-YEAR GROWTH DRIVERS VGI s focus towards OOH media and its 5 segments not only allows it to benefit from diverse growth drivers, but to become Thailand s pioneering data-enhanced onestop shop solutions provider via its Digital Services. In a period of historically soft media adspend as well as structural and behavioural shifts, competitive pressure is heightened. By broadening its exposure to OOH media - which continues to grow solidly - VGI has deftly positioned itself to benefit from new paradigms while augmenting its service offering with potentially more effective, targeted and more readily measurable advertising. Going forward, VGI will focus on growing its OOH media business organically, buttressed by fundamental growth drivers and unlocking synergies from integrating its recently acquired businesses. VGI s clients will benefit from potentially higher ROI, which will in turn drive occupancy growth of its media inventory - a considerable part of which was recently acquired during a soft market. Segment Transit Office Outdoor Aviation Activation Digital Services 4-5X expected increase in Transit media inventory from rail mass transit expansion which BTS expects to secure more lines that will increase the total track length to 213.6km Property projects developed by BTS Group and additional 463,000 1 sq.m. of new office space in Bangkok Digital conversion and M&A opportunities Expand to 6-8 countries in Southeast Asia Cross-selling on VGI s existing network ( BTS & Office), improving audience reach by 14X Expand online and offline network and enriching our data depth for our member profile 1 CB Richard Ellis (Thailand) Co., Ltd. VGi Global Media PCL 5

6 FINANCIAL DATA Key Financial Data (unit: THB mn) 2015/16 (Restated) /17 YoY (%) Revenue from services 2 2,341 3, % OOH media revenue 2,083 2, % Digital Services revenue % EBITDA 1,391 1, % Net profit % Total assets 5,563 7, % Total liabilities 1,728 4, % Shareholders' equity 3,835 3, % Net debt to equity 3 0.1X 1.0X Current ratio 1.8X 0.9X Gross profit margin 62.4% 58.4% EBITDA margin 59.4% 44.5% Net profit margin 40.2% 27.1% ROE 31.6% 23.8% Earnings per share Dividend per share Book value per share Note: VGI's fiscal year runs from 1 April to 31 March 1 The Company restated financial performance after the consolidation of Bangkok Smartcard System Co,. Ltd. and BSS Holdings Co,. Ltd. known as Rabbit Group under the common control basis. 2 Excluded other income 3 Total interest bearing debt/total shareholder s equity 4 The total dividend payment from 2016/17 operations was THB 412mn Operating Revenue and Gross Profit Margin Operating Revenue CAGR (6 yrs): 13.9% 4, % 57.4% 3, % 55.3% 58.4% 3,000 2, % 34.5% 2,000 1,500 3,149 2,838 2,963 3,052 2,341 1,000 1, , / / / / / / /17 Operating Revenue (THB mn) Gross profit margin (%) Note: The Company restated financial performance from 2015/16 onwards 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% VGi Global Media PCL 6

7 STOCK PROFILE SHAREHOLDING DETAILS Stock Symbol: VGI Shareholding Structure Market: Stock Exchange of Thailand (SET) Industry: Services Sector: Media & Publishing Share Price: THB 5.70 (as of 30 June 2017) Market Capitalisation: THB 39,125mn / USD 1,153mn 97.5% 0.1% BTSC Kanjanapas Family 41.0% 59.0% BTSG Kanjanapas Family BTSG s Minorities Public Outstanding Shares: 6,864mn shares 51.0% 20.9% 0.5% 27.6% Free Float: 27.5% (as of 1 June 2017) Share Price Performance: (THB) (THB mn) , , , , ADTV = THB 123mn Oct Oct Oct Oct Oct-16 VGI TURNOVER (RHS) SET Index (rebased) VGI TB Note: As of 31 May 2017 Top 10 Shareholders % out of total 1 Bangkok Mass Transit System PCL 51.0% 2 BTS Group Holdings PCL 20.9% 3 Bangkok Bank 3.5% 4 Thai NVDR 2.5% 5 N.C.B. Trust Limited-norges Bank % 6 Nortrust Nominees Limited-guernsey Re Ukdp Re: Aif Clients 10 Percent Non Treaty Account 1.8% 7 Mr. Nares Ngarmapichon 1.8% 8 Chase Nominees Limited 1.1% 9 State Street Bank Europe Limited 1.0% 10 KGLTF 0.6% Total 86.1% Note: As of 1 June 2017 VGi Global Media PCL 7

8 Investor Relations Department VGi Global Media PCL 15 th Floor, TST Tower 21 Viphavadi-Rangsit Road Chomphon, Chatuchak Bangkok Thailand Tel: +66 (02) Fax: +66 (02) Website: