VGi Global Media PCL
General and Business Update Presentation November 2013
VGi Global Media PCL General and Business Update Presentation
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.
IR Contacts
Disclaimer
IR Department: Ms. Tisakorn Youngmod Ms. Napat Buchasuk Ms. Chama Savetbodi
Telephone: +66(0) 2273 8639 +66(0) 2273 8636
Mobile: +66(0) 89 616 8884
Fax: +66(0) 2273 8610
Email: [email protected]
Website: www.vgi.co.th
VGi Global Media PCL General and Business Update Presentation
Agenda
Section 1 VGI in Brief and Advertising Industry
Section 2 VGI by Business Units
Section 3 Key Success Factors & Competitive Advantages
Section 4 2013/14 Growth Target and 2Q 13/14 Performance
Section 5 3 Years Outlook
Appendices
3
VGi Global Media PCL General and Business Update Presentation
0
500
1,000
1,500
2,000
2,500
3,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009/10 2010/11 2011/12 2012/13
2003
Granted initial “Advertisement Display Concession Agreement” from Watsons
2004
Key Milestones
1999
Granted initial “License to Manage Marketing Services Agreement” from BTSC
Exclusive license to manage the advertising spaces and merchandising areas of 23 stations and all trains for a period of 10 years
2010
VGI set up VGI Ad China
2005
Granted initial “Advertisement Display Concession Agreement” from Big C (non-Sales floor)
2009
Granted “Advertisement Display Concession Agreement” from Carrefour
BTSC becomes major shareholder of VGI
VGI acquired POV
2012
Granted initial “Advertisement Display Concession Agreement” from Tesco Lotus (non-Sales floor)
2011
Granted Advertisement Display Concession Agreement in “Sales floor” from Tesco Lotus and Big C
Amended “License to Manage Marketing Services Agreement” with BTSC
Listed on SET
Rev
enu
e (T
HB
mn
)
JAN - DEC APR - MAR
Section 1: VGI in Brief and Advertising Industry
4
VGi Global Media PCL General and Business Update Presentation
19
76 80
166
FY 09/10 FY 10/11 FY 11/12 FY 12/13
FY 09/10 FY 10/11 FY 11/12 FY 12/13
207 391
754
1,250
FY 09/10 FY 10/11 FY 11/12 FY 12/13
FY 09/10 FY 10/11 FY 11/12 FY 12/13
889 934 1,143
1,422
FY 09/10 FY 10/11 FY 11/12 FY 12/13
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Share Information (as of Oct 2013)
Key Figures
VGI in Brief
Remarks: - Exchange rate based on USD 1 = THB 31.17
BTS Media
Office Building & Other Media
Modern Trade Media
Historical Revenue *
*Excludes other income
Section 1: VGI in Brief and Advertising Industry
5
(2012/13) THB (mn) USD (mn)*
Revenue 2,838 95
EBITDA 1,289 43
Net Profit 908 30 Total Assets 2,573 86
Stock Code VGI
Outstanding Shares (mn) 3,300
Market Capitalisation (THB mn) 41,250
Market Capitalisation (USD mn) 1,323
Average Daily Traded Value (THB mn) 196
Average Daily Traded Value (USD mn) 6
Dividend Information
Dividend Policy: Not less than 50% of net profit
2012/13 Payout Ratio: 81%
VGi Global Media PCL General and Business Update Presentation
0.5% 3.0% 2.7% 4.0% 4.9% 5.6% 7.0%
12.5%
59.8%
0.7% 2.4% 3.0% 3.5% 4.7% 5.4% 7.4% 13.0%
59.9%
Internet In-Store Transit Outdoor Magazines Radio Cinema Newspapers TV
114 314
570 826
819 1,121
1,640 2,732
708 994 956
1,372
1,764
2,188 2,603
2,960 85,602 89,734 92,033 90,122 90,341
101,011 104,641 113,750
2005 2006 2007 2008 2009 2010 2011 2012
3Q 2013 3Q 2012 %YoY
Industry* 29.81 29.68 0.45%
Mass Transit 0.90 0.80 12.65%
In-Store 0.71 0.88 (20.06%)
Thai Media Industry Market Share: 3Q 2012 vs. 3Q 2013 (Jul - Sep)
Media Industry Overview
*Note: Excludes classified and house ads.
MARKET VALUE (THB mn)
Source: The Nielsen Company (Thailand) Limited
VGi Global Media PCL Section 1: VGI in Brief and Advertising Industry
6
Historical Thai Media Industry Expenditures (THB mn)
Total media industry CAGR 4.1%
Transit media CAGR 22.7%
In-store media CAGR 57.4%
3Q 2013
3Q 2012
VGi Global Media PCL General and Business Update Presentation
1 FMCG 94%
2 MOTOR VEHICLE ACCESSORIES 2%
3 COMMUNICATIONS 1%
4 MOTOR VEHICLES 1%
5 FOOD OUTLETS & RESTAURANTS
1%
6 PHARMACEUTICALS 0.5%
7 RETAIL SHOPS/STORES 0.3%
8 REAL ESTATE 0.2%
9 GOVERNMENT & COMMUNITY ANNOUNCEMENT
0.1%
10 TRAVEL & TOURS 0.1%
TOP 10 99%
OTHERS 1%
Top 10 Ad Spending by Business Segments (1 Jul 2013 – 30 Sep 2013)
Industry Overview: Ad Spending by Business Segment
Source: The Nielsen Company (Thailand) Limited
OVERALL MEDIA INDUSTRY VGI MASS TRANSIT VGI IN-STORE
1 FMCG 38%
2 MOTOR VEHICLES 8%
3 COMMUNICATIONS 7%
4
GOVERNMENT & COMMUNITY ANNOUNCEMENT
6%
5 LEISURE 4%
6 RETAIL SHOPS/STORES 4%
7 BANKS 4%
8 REAL ESTATE 3%
9 INSURANCE 3%
10 TRAVEL & TOURS 2%
TOP 10 79%
OTHERS 21%
*Excludes classified and house ads.
1 FMCG 43%
2 COMMUNICATIONS 9%
3 FOOD OUTLETS & RESTAURANTS
5%
4 LEISURE 4%
5 BANKS 4%
6 REAL ESTATE 4%
7 RETAIL SHOPS/STORES 3%
8 TRAVEL & TOURS 3%
9 COMPUTERS 2%
10 PHOTOGRAPHIC PRODUCTS 2%
TOP 10 79%
OTHERS 21%
7 Section 1: VGI in Brief and Advertising Industry
VGi Global Media PCL General and Business Update Presentation
Agenda
Section 1 VGI in Brief and Advertising Industry
Section 2 VGI by Business Units
Section 3 Key Success Factors & Competitive Advantages
Section 4 2013/14 Growth Target and 2Q 13/14 Performance
Section 5 3 Years Outlook
Appendices
8
VGi Global Media PCL General and Business Update Presentation
VGI’s Media Network Broad yet targeted media reach
BTS Media Modern Trade Media (Tesco Lotus, Big C, Watsons)
Office Bldg. & Other Media
No. of Locations 23 stations & 47 trains 2,013 branches 75 buildings
Static Media > 6,000 displays In-train & on station
> 11,000 m2 (sales floor) 624 displays (non-sales floor)
-
Digital Media (screens)
80 on-station & 1,128 LCDs in-train 3,131 screens
655 in elevators & 4 Mega LED screens
Viewer Reach (per day)
>608,000 BTS Ridership
≈ 1,000,000 shoppers
450,000 building visitors
Area Coverage CBD Nationwide CBD
Target Viewers • Working people and younger generation
• age 15-35 • middle income
• Women, housewives and families
• middle-low income
• White collar workers • age 24-45 • mid-high income
Revenue Contribution*
51% 43% 6%
Gross Profit Contribution*
70% 22% 8%
Section 2: VGI by Business Units
9
* as of 2Q 13/14
VGi Global Media PCL General and Business Update Presentation
272 308 406 427 468 583 734 889 934
1,143 1,422
Static
Key Concession Terms
BTS-related Media Multimedia
A. Rights 1) Exclusive rights for 23 stations & all BTS trains In Trains & on Stations Merchandising Area Additional areas
2) First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space
B. Effective Period 18 May 2012 – 4 December 2029
C. License Fees 5% - 20% of total revenues/year
(an incremental increase of 5% every 5 years)
BTS SkyTrain BTS Platforms
Train Body Wrap
Digital Screen inside the train
Standard
Platform Truss
Pier Head
Past Success
Merchandising Space
Merchandising Shop
BTS Media Revenue (THB mn)
Apr - Mar Jan - Dec
CAGR (10 years) = 18%
Section 2: VGI by Business Units
10
VGi Global Media PCL General and Business Update Presentation
Key Concession Terms
Modern Trade Media Digital Media
A. Rights 1) Exclusive rights for existing and upcoming branches Tesco Lotus Big C Watsons (digital media)
2) First right to extend contract
B. Length of Contract 3-5 years on average
C. License Fees Mainly based on percentage of revenue sharing and
minimum guarantee
Sales Floor Area Non-Sales Floor Area
Shelf Divider
Radio Media in Tesco Lotus & Big C
Shelf Frame
& Floor Sticker
Entrance Lightbox
Sensormatic
Past Success
Health and Beauty Zone
Aisle Arch
• Acquired exclusive rights to manage all advertising areas from Tesco Lotus and Big C, the top 2 players in the Modern Trade Retailer industry
• Big surge in revenue (93% growth in FY 2011/12) mainly from sales floor areas, which account for over 70% of total Modern Trade Media revenue
Static Media
Section 2: VGI by Business Units
11
VGi Global Media PCL General and Business Update Presentation
Outdoor LED Screens
Key Contract Terms
Office Building & Other Media
A. Rights & Length of Contract 1) Office Buildings 75 buildings in CBD, 3-5 years contract (avg.)
2) Outdoor LED (Selling Agent) 4 locations in Bangkok 1 year contract with renewable rights
3) Airport Link (Selling Agent) 9 trains, train body wrap, LCD in-train media, and 8
stations Contract expires in October 2021
4) Chulalongkorn University (CU) Bus 15 buses and 15 bus-stops 1 year contract with renewable rights
B. License Fees Revenue sharing and fixed rates
Digital Screen in Elevators Platform Banister
Rama 9 Junction
Past Success
• Changed to integrated network across all office buildings, increasing sales by 50%
• Bundled Office Building Media with the Company’s other media and sold as a package, increasing occupancy and driving sales by 100%
Chulalongkorn University (CU) Bus
Bus Body Wrap Bus Shelter
Victory Monument
Airport Link Media Office Building Media
Section 2: VGI by Business Units
12
VGi Global Media PCL General and Business Update Presentation
Agenda
Section 1 VGI in Brief and Advertising Industry
Section 2 VGI by Business Units
Section 3 Key Success Factors & Competitive Advantages
Section 4 2013/14 Growth Target and 2Q 13/14 Performance
Section 5 3 Years Outlook
Appendices
13
VGi Global Media PCL General and Business Update Presentation
Ability to Reach Audience
Business Strategy Cost Effectiveness
Key Success Factors & Competitive Advantages Right Place, Right Timing, and Right Targeted Viewers
BTS SkyTrain and Office Buildings
• Captive media (No remote control)
• High frequency
• Strong impact
Modern Trade
• Final Point of Sales Media, which is the last mile to purchase
• Prominent locations
• Nationwide viewer base
Source : The Nielsen Company (Thailand) Limited
Women, housewives and families
Working people and younger generation (age 15-35)
White collar workers
(age 24-45) Office
Building
BTS SkyTrain
Modern Trade
• VGI’s cost per thousand viewers is 15-20% cheaper than TV
Nationwide Media Network 1
Strong ability to reach viewers 2
Well-Classified Target Viewers
Product Advantage
3 Product Variety
4 Product Bundling
Section 3: Key Success Factors & Competitive Advantages
14
VGi Global Media PCL General and Business Update Presentation
2001 2002 2003 2004 2005 2006 2007 2008 2009/10 2010/11 2011/12 2012/13
183 317 352
482 521 651 844
1,046
1,138
1,413
2,005
2,872
Jan - Dec Apr - Mar
Floods Global financial
crisis
Coup d’Etat
Bangkok Political
Demonstration
Note: *Includes other income
Unit : THB mn
Non-BTS Revenue*
BTS Ridership Trend
BTS Revenue*
• Uninterrupted revenue growth in every single year from both BTS revenue and non-BTS revenue despite various disruptions and decline in BTS ridership, demonstrating resilience against crisis.
VGI Revenue CAGR (11 years) = 29%
Key Success Factors & Competitive Advantages Resilience & Growth
Section 3: Key Success Factors & Competitive Advantages
15
VGi Global Media PCL General and Business Update Presentation
Agenda
Section 1 VGI in Brief and Advertising Industry
Section 2 VGI by Business Units
Section 3 Key Success Factors & Competitive Advantages
Section 4 2013/14 Growth Target and 2Q 13/14 Performance
Section 5 3 Years Outlook
Appendices
16
VGi Global Media PCL General and Business Update Presentation
50% 44%
6%
BTS Modern Trade Office Bldg
2013/14 E 50% 44%
6%
BTS Modern Trade Office Bldg
2013/14 Target: Overall Business
Expected Revenue Contribution by Business Units
2012/13
Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
30% YoY Revenue Growth
30% Off. Bldg & Others
30% Modern
Trade 28% BTS
Expected Revenue Growth
Platform Screen Door 160
BTS:Platform Truss LED (76 screens), LCD in-train (120 screens for 5 trains), E-Poster (24 panels)
330
Modern Trade and Others 80
Total 570
Expected CapEx 2013/14 (THB mn)
17
VGi Global Media PCL General and Business Update Presentation
media capacity on non-prime stations
28% BTS Growth
2013/14 Target: BTS-related Media
36% train capacity (35 single-car + 5 new trains )
10% price adjustment on platform and train media
2.5x capacity increase from platform truss LED
18 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
Current Package New Package
PLATFORM TRUSS (STATIC MEDIA)
18 packages: 7% of BTS-related rev.
14 packages
ON-STATION LCD 7% of BTS-related rev. Remove from 20 stations
PLATFORM TRUSS LED (DIGITAL MEDIA)
n/a Install on 20 stations: • 4 locations on 18 stations • 2 locations on 2 stations
(Mo Chit & National Stadium)
Current Package: Platform Truss & On-station LCD New Package: Platform Truss LED
Platform Truss LED
2013/14 Target: BTS-related Media
2.5x Expected Revenue Growth from the New Package
2.5x capacity increase
19 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
45
17
80
20
55
58
40
15
54
15
Source: Tesco Lotus, Big C, and Bohdi Tree Knowledge Co., Ltd.
2013/14 Target: Modern Trade Media
Target number of new branches for 2013:
VGI Media Coverage of Modern Trade Outlets in Thailand*
30% Modern Trade Growth
Occupancy Growth
* Data includes only large and medium formats as of 30 Sep 2013
20
Format Tesco Lotus
Big C Total
Large 0 6 6
Medium 11 15 26
Small 340 200 540
Total 351 221 572
Retailer Growth
2012/13 2013/14
Digital 50% 65%
Sales Floor 40% 50%
Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
NORTH
NORTHEAST CENTRAL
BKK EAST
SOUTH
57
15
BKK 57 58 UPC 276 82 TOTAL 331 140
VGi Global Media PCL General and Business Update Presentation
2013/14 Target: Office Building and Others Media
30% Office Building and Others Growth
30% Growth
21 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
Office Building • 30% revenue increase • 24 building expansion
CU Bus • Full year revenue
recognition
VGi Global Media PCL General and Business Update Presentation
Modern Trade Media
17%
P&L Snapshot 2Q 13/14 (THB mn)
2Q 13/14 Overview
(THB mn) 2Q 13/14 2Q 12/13 %YoY 1Q 13/14 % QoQ 1H 13/14 1H 12/13 %YoY
Operating Revenue 853 735 16% 849 0% 1,702 1,385 23%
Cost of sales 344 310 11% 368 -6% 712 656 8%
Gross profit 509 424 20% 482 6% 991 729 36%
EBITDA 427 360 19% 407 5% 834 598 39%
Net profit 328 253 30% 308 6% 636 414 54%
Gross profit margin 60% 58% 57% 58% 53%
EBITDA margin 50% 49% 48% 49% 43%
Net profit margin 38% 34% 36% 37% 30%
2Q 13/14 Revenue Breakdown 2Q 13/14 Net Profit Breakdown
BTS-related Media
75%
Office Building & Other Media
8%
6%
Office Building & Other Media
51%
BTS-related Media
43%
Modern Trade Media
22 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
372 415 431
680
845
2Q 12/13 1Q 13/14 2Q 13/14 1H 12/13 1H 13/14
192
106
48
26
212
113
54 36
224
110
62
35
Train Station Merchandising Others
2Q 12/13
1Q 13/14
2Q 13/14
Margins (%)
BTS-related Media
EBITDA (%) Gross Profit (%) Net Profit (%)
52% 51% 52%
27% 25% 28%
15% 13% 13% 8% 9% 7%
Revenue (THB mn) Revenue Breakdown (THB mn)
74%
73%
72%
82%
82%
83%
2Q 12/13
1Q 13/14
2Q 13/14
53.0%
56.5%
57%
23 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
311 389 367
618
756
2Q 12/13 1Q 13/14 2Q 13/14 1H 12/13 1H 13/14
221
30
60
285
31
73
267
24
76
Sales floor Non-Sales floor Multimedia
2Q 12/13
1Q 13/14
2Q 13/14
Revenue (THB mn)
Margins (%)
Modern Trade Media
EBITDA (%) Gross Profit (%) Net Profit (%)
73% 73% 71%
6% 8% 10% 21% 19% 19%
Revenue Breakdown (THB mn)
17%
20%
22%
2Q 12/13
1Q 13/14
2Q 13/14
10%
13%
15%
2Q 12/13
1Q 13/14
2Q 13/14
26%
28%
31%
2Q 12/13
1Q 13/14
2Q 13/14
24 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
52 45
55
88 101
2Q 12/13 1Q 13/14 2Q 13/14 1H 12/13 1H 13/14
74%
71%
71%
2Q 12/13
1Q 13/14
2Q 13/14
64%
62%
61%
2Q 12/13
1Q 13/14
2Q 13/14
42
8
2
38
3 4
48
1 6
Office Buildings Mega LED Airport Rail Link andCU Bus
2Q 12/13
1Q 13/14
2Q 13/14
Revenue (THB mn)
Office Building & Other Media Revenue Breakdown (THB mn)
EBITDA (%) Gross Profit (%)
Margins (%)
Net Profit (%)
87% 85% 80%
10% 9% 15% 6% 3% 5%
47%
48%
48%
2Q 12/13
1Q 13/14
2Q 13/14
25 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
1,171
653
200
365 420
182
298
200
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Beginning cash(30/6/13)
CFO Dividend Payment CapEx Ending Cash(30/9/13)
2Q 13/14 Performance
Cash Flow Movement
CapEx (THB mn)
1Q 13/14 2Q 13/14 2013/14E
Platform Screen Door 0 34 160
BTS (Platform Truss LEDs and E-Poster) 84 134 330
Modern Trade and Others 9 14 80
Total 93 182 570
(THB mn)
Ending Cash
Private Fund
Fixed Deposit
1,151 1,371
Fixed Deposit
Beginning Cash
26 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
1,821 2,037
22 24
737 887
31-Mar-13 30-Sep-13
584 876
1,995
2,072
31-Mar-13 30-Sep-13
Assets Breakdown (THB mn)
2Q 13/14 Balance Sheet
Liabilities and Equity Breakdown (THB mn)
Current assets
Non-current Assets
77%
23%
70%
30%
Current liabilities
Non-current liabilities
Equity
28%
71%
1%
30%
69%
1%
Key Financial Ratios
DEBT TO EQUITY
2Q 13/14: 0.0x
4Q 12/13: 0.0x
LIABILITY TO EQUITY
2Q 13/14: 0.40x
4Q 12/13: 0.40x
CURRENT RATIO
2Q 13/14: 2.30x
4Q 12/13: 2.70x
2,579
2,948 2,579
2,948
27 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
Business Updates BTS-related Media
Office Building
Platform Truss LED E-Poster
Platform Truss LED 76 Total Panels on 12 stations 24
Start Selling: Nov 2013
Start Selling: Feb 2014
No. of Building No. of Screen Capacity Increase
Previous (as of 31 Mar 2013) 51 452
Additional (START SELLING: Oct 2013)
+ 24 + 203
Total 75 655 45%
28 Section 4: 2013/14 Growth Target and 2Q 13/14 Performance
VGi Global Media PCL General and Business Update Presentation
Agenda
29
Section 1 VGI in Brief and Advertising Industry
Section 2 VGI by Business Units
Section 3 Key Success Factors & Competitive Advantages
Section 4 2013/14 Growth Target and 2Q 2013/14 Performance
Section 5 3 Years Outlook
Appendices
VGi Global Media PCL General and Business Update Presentation
Mass Transit
Modern Trade
Office Building& Others
17% Annual Revenue Growth
10% Off. Bldg & Others
20% Mass
Transit
15% Modern
Trade
3 Years Outlook: Existing Business Growth
70%
25%
5%
2014/15 E
70%
25%
5%
2015/16 E
70%
25%
5%
2016/17 E
Excludes other income Percentages represent contributions to the parameter
NPAT Contribution
EBITDA Margin Revenue Growth
70%
25%
60%
Mass Transit Modern Trade Office Building & Others
Section 5: 3 Years Outlook
30
VGi Global Media PCL General and Business Update Presentation
Business Opportunities
11 Stations on Green Line
extension
Innovative media
applications
JV and M&A
Other mass transit lines
3 Years Outlook: Business Opportunities
AEC
Section 5: 3 Years Outlook
31
VGi Global Media PCL General and Business Update Presentation
APPENDICES
VGi Global Media PCL General and Business Update Presentation
Future growth from existing non-prime stations
Currently 90% occupancy on 20 stations 23.5km on 23 core stations
Appendix: BTS Core Network and Extension
7.5km
5.3km
33
VGi Global Media PCL General and Business Update Presentation
Light Rail Transport Bang Na – Suvarnabhumi 18.6km; completed by 2017
Dark Green Line Samut Prakarn – Bang Pu 7 km; completed by 2017
I. Dark Green Line Bearing – Samut Prakarn
12.8 km; completed by 2017
Light Green Line National Stadium – Yodse 1 km; completed by 2019
II. Dark Green Line Mo Chit – Saphan Mai
12.0 km; completed by 2016
III. Pink Line Khae Rai – Min Buri
34.5 km; completed by 2017 Dark Green Line Kukod – Lamlukka 6.5 km; completed by 2019
Expected Date for Tendering: end of 2013 Expected Operating Year: 2017 Expected Contract Type: PPP Expected Return: ≥ 12% Civil Works Awarded: THB 17.8bn Estimated Project Cost: THB 27.3bn
I. Dark Green Line Bearing – Samut Prakarn (12.8km)
Expected Date for Tendering: early 2014 Expected Operating Year: 2017 Expected Contract Type: PPP Expected Return: ≥ 12% Estimated Project Cost: THB 34.1bn
III. Pink Line Khae Rai – Min Buri (34.5km)
II. Dark Green Line Mo Chit – Saphan Mai (12.0km)
Expected Date for Tendering: early 2014 Expected Operating Year: 2017 Expected Contract Type: PPP Expected return: ≥ 12% Estimated Project Cost: THB 45.0bn
Update on Green and Pink Line Extension
Appendix: BTS Expansion Plan
34
VGi Global Media PCL General and Business Update Presentation
424 494 576 671 782 911
1,061
2011 2012 2013 2014 2015 2016 2017
Estimated Ridership Growth (from dark green line)
Increase in Fleet
Capacity increase of 36% by end of 2013
Source: Office of Transport and Traffic Policy and Planning
(‘000 passengers / day)
Appendix: Capacity Increase
35
47 188
Current Fleet
X12 48
No. of Carriages No. of Trains
X35 105
35 +23% Already operated in May 2013
Total Current Fleet
59 236
New Fleet
X7 28 X5 20 +36% +54%
Total Estimated Fleet
Capacity Increase (cumulative)
Expected delivered by 2013
Expected delivered in 2019
VGi Global Media PCL General and Business Update Presentation
Key Financial Ratios FY 12/13 FY 11/12 FY 10/11
Profitability Ratios
Gross profit (%) 54.6% 34.5% 35.3%
EBITDA (%) 45.4% 26.6% 25.1%
EBIT (%) 41.9% 21.6% 18.7%
Net profit (%) 32.0% 14.1% 12.3%
Return on Equity (%) 86.2% 78.8% 40.3%
Liquidity Ratios
Current Ratio (times) 2.7x 1.0x 1.1x
Quick Ratio (times) 2.6x 0.9x 1.0x
Efficiency Ratios
Return on Assets (%) 46.7% 21.3% 13.4%
Asset turnover (times) 1.5x 1.5x 1.1x
Leverage Ratios
Liability to Equity (times) 0.4x 3.5x 2.1x
Debt to Equity (times) No leverage
Appendix: Key Financial Ratio
36
VGi Global Media PCL General and Business Update Presentation
Kong Chi Keung (Director)
Keeree Kanjanapas (Chairman)
VGI Board of Directors
Kavin Kanjanapas (Director and Chairman of Executive Committee)
Surapong Laoha-Unya (Director)
Marut Arthakaivalvatee (Director and Chief Executive Officer)
Chan Kin Tak (Director & Chief Operating Officer)
Assoc.Prof.Jaruporn Viyanant (Independent Director and Chairman of Audit Committee)
Maneeporn Siriwatanawong (Independent Director and Audit Committee)
Mana Jantanayingyong (Independent Director and Audit Committee)
• Over 10 years of commitment as a role of director and management. He is one of the key persons who has steered the performance of VGI during the last decade
• His experience as Chief Operating Officer of Bangkok Mass Transit System Plc. since 2006 provides VGI with insights to BTS-related business
• Held various well-respected directorship positions in various
government-related organizations such as the Bank of Thailand, Office of the Prime Minister, the Securities and Exchange Commission, and the Stock Exchange of Thailand, etc.
• More than 35 years in the advertising & media industry with experience in multinational and domestic companies. He has worked with leading multinational and domestic companies such as McCann-Erickson Thailand, Oglivy & Mather (Thailand) and Grammy Entertainment
• Extensive experiences in the field of tax audit with the Revenue Department and Internal Auditor with the Bank of Ayudhya Plc.
• Experiences in the retail business with Watsons in Thailand and Hong Kong
• Held various management position in international media agencies such as Executive Director of Group M, Managing Director of Mediaedge: CIA and management of McCann-Erickson Thailand
• One of the most successful business person in Thailand with experiences in various industries. Khun Keeree is the one who introduced the first SkyTrain network to Thailand. He brings along valuable business experiences while providing key strategic directions to VGI
• More than 10 years of involvement with VGI as the Director
Appendix: VGI Board of Directors
37
VGi Global Media PCL General and Business Update Presentation
Shareholding Structure
BTSC
BTSG
Kanjanapas Family
BTSG’s Minorities
BTSC’s Minorities
49.1% 50.9%
97.5% 2.5%
0.1%
51.0%
Public Kanjanapas
Family
33.8% 0.5%
14.7%
(As of 19 Aug 2013)
Appendix: Shareholding Structure
38
VGi Global Media PCL General and Business Update Presentation
THANK YOU
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