VGI Global Media PCL. VGI General Presentation & 2015/16 Earnings Update June 2016

Transcription

1 VGI Global Media PCL VGI General Presentation & 2015/16 Earnings Update June 2016

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 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 3

4 Company Overview Key Milestone 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 Granted initial Advertisement Display Concession Agreement from Tesco Lotus (non-sales floor) Granted Advertisement Display Concession Agreement from Carrefour BTSC becomes major shareholder of VGI VGI acquired POV (Office Building Media) Invested in MACO - a leader in billboard and street furniture business, by acquiring 24.96% of MACO s total shares in May Terminated Modern Trade media business Selected as Best under a billion by Forbes Asia / / / / / /16 Granted initial Advertisement Display Concession Agreement from Watsons Granted initial Advertisement Display Concession Agreement from Big C (non-sales floor) 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 in Oct 2012 Entered into aviation media by investing in Aero Media 20% of its total shares. Reduced stake in MIDAS from 30% to 11.11% Announced our intention to evolve in Nationwide Integrated Media Platform Increased stake in MACO from 24.96% to 37.42% Included as a constituent member of SET100 Index in Jul 2013 Included as a constituent member of SET50 Index in Jan 2014 Formed a JV named Midas Global Media Co., Ltd. (MIDAS) Section 1: Company Overview 4

5 Company Overview At a glance SHAREHOLDING STRUCTURE (as of May 2016) DIVIDEND INFORMATION BTSG Kanjanapas Family 41.0% 59.0% BTSC BTSC s Minorities 97.5% 2.5% 0.1% 51.0% 23.3% Public 25.2% 0.5% BTSG s Minorities Kanjanapas Family Dividend Policy: 1,500 Not less than 50% of net profit. Payout Ratio 13/14 14/15 93% 123% 1,000 15/ % - 2.5% 1, % 1, % / / /16 4.0% 3.0% 2.0% 1.0% 0.0% Dividend (THB mn) Dividend Yield (%) Note: Dividend yield is calculated using VGI closing share price one day before the date of BOD meeting approving the relevant dividend. 2012/13 final dividend and 2013/14 and 2014/15 interim dividend included stock dividend (at par value) of 10:1, 25:1 and 1:1, respectively. 2015/16 dividend yield per share is calculated from share price one day before AGM on 6 July 2015 TOP 10 SHAREHOLDERS (based on latest close book) % May 16 1 BTSC 51.0% 2 BTSG 23.3% 3 MR. NARES NGAMAPICHON 2.7% 4 STATE STREET BANK EUROPE LIMITED 1.9% 5 THAI NVDR 1.7% 6 NORTRUST NOMINEES LIMITED 1.5% 7 UOB KAY HIAN PRIVATE LIMITED 0.9% 8 CHASE NOMINEES LIMITED 0.9% 9 KRUNGSRI LONG-TERM DIVIDEND FUND 0.7% 10 MR. KEEREE KARNJANAPAS 0.5% TOTAL TOP 10 SHAREHOLDERS 85.1% TOTAL ISSUED SHARES (mn shares) 6,864,321,852 Section 1: Company Overview SHARE PRICE MOVEMENT (as of 31 MAY 2016) (THB) (THB mn) VGI TURNOVER (RHS) SET Index (rebased) VGI TB , , , , ADTV = THB 132mn Oct Oct Oct Oct-15 5

6 Company Overview 3 Active Business Units BTS-related Media This business unit proved to be the most resilient performer in our business portfolio. The Company possess exclusive rights to manage advertising space on BTS SkyTrain Network, which expires in 2029 and has right of refusal for Core Network and new extension lines that BTS secures post Altogether, we manage advertising space across 30 stations & all BTS trains. BTS-related Media has one of the highest viewer exposure in OOH Media with an average of 720,155 viewers per day in 2015/16. Office Building Media We initiated this business unit back in 2009 by acquiring POV with 41 grade A buildings in the portfolio. Today, we have expanded our media across 135 office buildings with approximately 660,000 viewers per day. Moreover, VGI has tapped into condominium network through ARTISTA covering more than 219 condominiums making us the largest media company to provide advertising across 354 buildings with over 1,640 digital screens. Other Media Through our connection with media agencies, the Company became the sales agent for several mega LED screens both domestically and internationally. Moreover, the Company expanded the footprint in OOH including outdoor and aviation media throughout several acquisitions. Modern Trade Media (discontinued) Previously, the Company has exclusive rights to manage advertising space in Tesco Lotus and Big C. However, we decided to terminate this business unit in 4Q 14/15. Hence, this business unit will no longer generate revenue in 2Q15/16 and onwards. Section 1: Company Overview HISTORICAL OPERATING REVENUE (THB mn) 5 YRS CAGR: +14.2% , YRS CAGR: +21.6% ,250 1, / / / / / /16 4 YRS CAGR: % 1 1, ,679 1,805 1, / / / / / / / / / / / / / / / / / /16 REVENUE CONTRIB. 2014/ / / / / / / /16 61% 86% 5% 10% 1% 2% 33% 2% GROSS PROFIT CONTRIB. 2014/ / / / / / / /16 84% 95% 7% 9% -2% -3% 11% -1% 6

7 Agenda Section 1 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 7

8 Thai Media Market Overview Media landscape in Thailand THE TRANSITION FROM TRADITIONAL MEDIA TO OOH MEDIA Rising in infrastructure, urbanisation and increasing number of people who spend time outdoor were driven the growth of Thailand OOH Media. 93bn 5% 7% 28% 59% 104bn 105bn 6% 7% 7% 8% 114bn 110bn 1% 6% 1% 5% 9% 9% 102bn 1% 4% 10% 26% 25% 24% 24% 23% 60% 59% 60% 61% 2009/ / / / / / /16 TV Traditional media OOH Media Cinema Internet 93bn 1% 6% 10% TRANSIT MEDIA INCREASED ITS MARKET SHARE CONTINUOUSLY Transit is continue to dominate the OOH Media market share and is expected to increase on account of development of rail mass transit infrastructure. 4% 13% 16% 20% 27% 24% 19% 59% 53% 49% 43% 41% 62% 40% 28% 30% 30% 30% 35% 40% 23% 60% 47% 49% 2009/ / / / / / /16 Transit Outdoor In-Store ADVERTISING EXPENDITURES BY SECTOR (rebased) OOH Media proved to be the fastest growing media sector / / / / / / / / /16 Total Industry TV Traditional media* OOH Media Cinema * Traditional Media includes Magazines, Radio and Newspapers TOP 10 ADSPEND BY BUSINESS SEGMENT 2014/ /16 FMCG 40.4% 39.5% COMMUNICATIONS 7.7% 7.9% REAL ESTATE 6.7% 6.3% RETAIL SHOPS/STORES 5.5% 6.2% MEDIA & MARKETING 4.6% 4.8% TRAVEL & TOURS 3.5% 3.8% LEISURE 3.1% 3.1% FOOD OUTLETS & RESTAURANTS 2.3% 2.7% INSURANCE 2.7% 2.6% CREDIT/DEBIT CARDS 2.3% 2.3% Total 78.8% 79.2% +5.7% CAGR +2.4% CAGR +0.7% CAGR +0.3% CAGR -3.3% CAGR Section 2: Thai Media Market Overview Source: The Nielsen Company (Thailand) Limited. Excludes classified and house ads, Digital, Cable and Satellite TV. 8

9 Agenda Section 1 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 11 Section 3.2 Office Building Media 18 Section 3.3 Other Media 21 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 9

10 BTS-related Media Overview KEY CONCESSION TERMS RIGHTS Exclusive rights for 23 stations on core network, 7 stations on BTS extension lines and all BTS trains In Trains & On-Stations Merchandising Area First right to renew contract and extend space on additional mass transit projects that BTSC is granted the rights to operate media space EFFECTIVE PERIOD 23 Core Network: 18 May December Extensions: 6 May December 2029 OUR PRODUCTS (% OUT OF 2015/16 BTS-RELATED MEDIA REVENUE) I. TRAIN (42%) II. STATION (33%) CONCESSION FEE (PAYABLE TO BTSC & BMA) 5% - 20% of total BTS revenues/year (an increase of 5% every 5 years) fixed rate for 7 extension stations MARKET SHARE IN TRANSIT BTS-RELATED MEDIA PROFILE Other, 45% 15/16 Transit Media AdSpend THB 4.6bn VGI, 55% Note: based on a market discount rate of 30% No. of location: Static Media: Digital Media: Viewer reach: 30 stations/52 trains > 4,000 displays 2,029 screens 720,155 people/day Merchandising > 10,000 sqm. space: Target viewer: Working people & younger generation Age Middle Income III. MERCHANDISING & OTHER (25%) Section 3.1: BTS-related Media 10

11 BTS-related Media BTS Products Advertising media on 52 trains across 30 BTS stations Section 3.1: BTS-related Media 11

12 BTS-related Media BTS Products More than 4,000 static displays and 2,029 digital screens Section 3.1: BTS-related Media 12

13 BTS-related Media BTS Products More than 750,000 viewers per day Section 3.1: BTS-related Media 13

14 BTS-related Media BTS Products Merchandising spaces More than 8,800 sq.m. Section 3.1: BTS-related Media 14

15 BTS-related Media Upside from mass transit expansion MASTER RAIL MASS TRANSIT EXPANSION PLAN OF 515.3KM IN 14 YEARS EXISTING NETWORK (2014) FUTURE NETWORK (2029E) Market share of commuters Total rail length (km) No. of stations E 6% % >320 See full map: Appendix A See full map: Appendix A 297.8KM ONGOING PROJECTS PRIORITISED BY THE GOVERNMENT, 108.8KM FOCUSED BY BTS IN 5 YEARS LINE ROUTE OPERATE YEAR CONSTRUCTION PROGRESS DISTANCE (KM) NO. OF STATIONS PURPLE BANG YAI - BANG SUE 2015 UNDER CONSTR BLUE HUA LAMPHONG - BANG KHAE 2016 UNDER CONSTR BLUE BANG SUE - THA PRA 2016 UNDER CONSTR DARK RED BANG SUE - RANGSIT 2017 UNDER CONSTR N.A. DARK GREEN SOUTH BEARING - SAMUT PRAKARN 2018 UNDER CONSTR DARK GREEN NORTH MO CHIT SAPHAN MAI KHU KHOT 2019 UNDER CONSTR LIGHT GREEN BANG WA - BOROMMARATCHACHONNANI LRT BANG NA - SUVARNABHUMI GREY (I) WATCHARAPHON THONG LO PINK KHAE RAI PAK GRED MIN BURI DARK GREEN SAMUT PRAKARN - BANGPU YELLOW LAD PRAO SAM RONG ORANGE TALING CHAN MIN BURI LIGHT RED BANG SUE - PHAYATHAI MAKKASAN N.A. LIGHT RED MAKKASAN HUA MARK N.A. DARK RED RANGSIT THAMMASART UNIVERSITY N.A. DARK RED BANG SUE - HUA LAMPHONG N.A. TOTAL (KM) >183 Section 3.1: BTS-related Media 108.8km focusing by BTS which benefiting VGI 15

16 3,000 2,500 2,000 1,500 1, BTS-related Media Upside from mass transit expansion and increased digitalisation EXPANSION OPPORTUNITIES WITH RAIL MASS TRANSIT 4X EXPECTED INCREASE IN BTS TRAIN CAPACITY IN 5 YRS (108.8KM) Green Lines (carriages)* Other lines (carriages)** CONSISTENT AND RESILIENT REVENUE GROWTH REVENUE CAGR (14 YRS): 21% RIDERSHIP CAGR (13 YRS): 9% / /20E 4X EXPECTED INCREASE IN BTS EXTENSION STATIONS IN 5 YRS (108.8KM) Despite frequent interruptions, ridership growth drives continuous revenue growth of BTS-related Media. 208 none X Total (carriages) 208 4X 830 Green Lines (no. of station) * Other lines (no. of station) ** 2014/ /20E 34 none Total (no. of station) ,679 1,805 1,813 1,422 1,143 INCREASED DIGITALISATION OF OUR MEDIA PLATFORM DIGITAL MEDIA PENETRATION IS RELATIVELY LOW IN THAILAND Digital media market share is expected to increase over time as its platforms provide more capacity and are cost effective. Moreover, it proves to be more adaptable and dynamic than traditional media BTS-RELATED MEDIA REVENUE CONTRIBUTION (DIGITAL VS STATIC MEDIA) BTS Digital Media platform (Platform Truss LEDs and E-Posters) launched in late 2014 and still has room to grow due to increased capacity and strong recovery post economic slump. (THB mn) % 3.6% 6.0% 7.0% 97.7% 96.4% 94.0% 93.0% Source: Digital Media Advertising Association (Thailand) 1, % 1, % % % 1,405 1, % % % 55% Digital (online)*** Offline coup d etat BTS-related Media (THB mn) Section 3.1: BTS-related Media subprime yellow red floods shutdown coup shirt shirt BKK d etat Ridership: core and existing extensions (mn trips) 2012/ / / /16 Digital Static *BTS existing network, Dark Green South, Dark Green North and Light Green lines **LRT, Grey and Pink Lines *** Including Display, Search, Social Media, Creative, Mobile, Facebook Ad and Video 16

17 Office Building Media Overview KEY CONCESSION TERMS RIGHTS Exclusive rights to manage 135 grade A buildings in CBD OUR PRODUCTS I. MEDIA INSIDE ELEVATORS AND OFFICE BUILDING AREAS LENGTH OF CONTRACT 3-5 years on average CONCESSION FEE Approximately 20 30% revenue sharing and fixed rates MARKET SHARE IN OFFICE Available grade A building, 37% Grade A and B Building in Bangkok 215 Buildings VGI, 63% OFFICE BUILDING MEDIA PROFILE No. of location: 135 Grade A buildings in Bangkok Multimedia: 1,091 screens Viewer reach: > 660,000 people/day Target viewer: Age Middle high income Average time 14 mins/day spend in an elevator Section 3.2: Office Building Media 17

18 Office Building Media LCD Screen in elevator 135 office buildings with 1,091 screens Section 3.2: Office Building Media 18

19 Office Building Media Upside from our existing office asset base and new office supply OFFICE BUILDING MEDIA PROFILE I. HOUSEHOLD INCOME PROFILE IN OFFICE BUILDING (per month) 44% 5% 12% Source: Company s research 13% 26% below THB 15K THB 15-25K THB 25-50K THB 50-60K THB 60K+ II. VGI S OFFICE BUILDING NETWORK IN BANGKOK BY DISTRICT VGI network is currently CBD concentrated KEY GROWTH DRIVERS I. OFFICE BUILDING NETWORK EXPANSION VS REVENUE Office building set to recover post economic slump and additional of office buildings REVENUE CAGR (6 YRS) : 48% / / / / / / /16 Office Building Media Revenue (THB mn) II. NEW OFFICE SUPPLY IN BANGKOK Expected of 318,000 sq.m. new office supply in the next 3 years No. of building VGI s office building network Bangkok CBD F 2017F 2018F CBD ('000 sq.m.) Non CBD ('000 sq.m.) Section 3.2: Office Building Media Source: CB Richard Ellis (Thailand) Co., Ltd. 19

20 Other Media Overview KEY CONCESSION TERMS INVESTMENT Outdoor Media (billboard, street furniture & transit) 37.42% stake in Master Ad PCL (MACO; listed on SET) Aviation Media 20% stake in Aero Media Co., Ltd. (Aero Media manages advertising space across 13 airports under AOT and DCA) Roadside Media 11.11% stake in Midas Global Media Co., Ltd. (MIDAS; non-listed) OUR PRODUCTS I. INVESTMENT IN MACO, MIDAS & LED CONTRACTS Chamchuri Square (3 yrs + 3yrs contract) Exclusive rights to operate media space inside/outside Chamchuri Square (~127 panels of static and digital) Empire Tower (5 yrscontract) Exclusive rights to operate mega LED at Empire Tower Buses Chulalongkorn University (CU Bus) - 15 buses and 15 bus-stops BRT buses II. CONTRACTS AND EXCLUSIVE SELLING AGENT EXCLUSIVE SELLING AGENT Artista Media Manage 549 LCD Screens across 219 residential buildings Condominiums in portfolio: AP, LPN, U Delight and Grand Unity Thai AirAsia (3 yrs) Manage media on 30 planes & future fleets Contract with renewable rights Street Furniture (3 yrs) Street Furniture including BTS columns and bridge columns on major junctions across Bangkok. Mega LEDs +200 sq.m. LED in Bangkok and Lao Section 3.3: Other Media 20

21 Other Media Expand our market share in OOH media through acquisitions ACQUIRED 37.42% IN MACO PLC. VGI invested 37.42% in MACO (1,126mn shares) Total investment value of THB 1,109mn MACO Plc. is one of the leading OOH Media company and listed on the SET. MACO has 28 years experience in OOH Media advertising with a network of more than 1,200 billboards across Bangkok and vicinity. Strategic investment to expand VGI s OOH Media network and to achieve long-term synergy between two companies. Capable and proven management MACO PRODUCTS Billboard Street furniture Billboard Product Street Furniture Production & Event, 6% Transit, 1% Street furniture, 35% Locations/Areas Bangkok & vicinity / 667 billboards In 69 provinces / 554 billboards Transit City grip light express & Mo Chit station / 124 signs & 7 light boxes Made to order & Event FINANCIAL OVERVIEW Section 3.3: Other Media n/a 2015 TOTAL OPERATING REVENUE THB 694mn Billboard, 59% Share information (as of 31 May 2016) Stock code: Operating revenue (THB mn) Net Profit (THB mn) MACO Market capitalisation (THB mn): 3,280 Outstanding shares (mn shares): 3,009 Par value (THB) 0.1 FINANCIAL PERFORMANCE 2015 Dividend Yield of 4.3% 21

22 Other Media Expand our market share in OOH media through acquisitions ACQUIRED 20% IN AERO MEDIA CO., LTD. VGI invested 20% in new shares of Aero Media with option up to 30% Another big step for VGI in aviation media industry after collaboration with AirAsia Dominant position by covering 13 leading airports in Thailand Potential expansion in new media projects with new capital injected by VGI Solid relationship in aviation industry Product No. of screens/products No. of airports LEDs at AOT LEDs at DCA 7 7 Aerobridges 57 5 Buggy service cart wrap 12 1 Trolleys 4,500 6 Media on Thai Lion Air 19 planes - AOT airport websites management All the websites 6 AERO MEDIA PRODUCTS AERO MEDIA GROUP STRUCTURE At Peak 57 aerobridges in 5 AOT airports Buggy service cart wrap in Suvarnabhumi Airport 100% 100% 100% OUTLOOK/GROWTH DRIVERS AERO MEDIA 342 LEDs in 13 Airports Prime World Solution Official AOT/airport websites management Media Genius Sale agent for advertising media Strong expected growth driven by an increasing air traffic will directly facilitating Aero Media s performance. 10 YRS CAGR: 8.9% Section 3.3: Other Media 22

23 Other Media MACO Products More than 650 billboards across Bangkok and vicinity. Section 3.3: Other Media 23

24 Other Media MACO Products Street furniture More than 550 billboards In Bangkok Section 3.3: Other Media 24

25 Other Media Aero Media Products 342 Screens ALL gates in Suvanabhumi airport > 115 million Passengers/ month Section 3.3: Other Media *Source: Aero Media 25

26 Other Media Aero Media Products 19 Thai Lion Air airplanes. 215 Seats/ Plane 47 Flights/ Day Section 3.3: Other Media *Source: Aero Media 26

27 Agenda Section 1 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 27

28 VGI Financial Performance INCOME STATEMENT (THB mn) 2012/13 (restated) 2013/ / /16 YoY (%) Operating Revenue 2,838 3,149 2,963 2, % BTS-related Media 1,422 1,679 1,805 1, % Office Building & Other Media % Modern Trade Media 1,250 1, % Cost of sales 1,289 1,342 1, % Gross profit 1,548 1,807 1,638 1, % EBITDA 1,289 1,510 1,225 1, % Net profit 902 1, % BALANCE SHEET (THB mn) Total assets 2,579 2,741 3,286 3,099 Total liabilities , Total shareholders' equity 1,821 1,953 1,829 2,242 CASH FLOW (THB mn) Cash from operating activities 560 1,292 1, Capital expenditures (323) (510) (521) (158) PER SHARE DATA (THB/ share) Earnings per share Dividend per share VGI s overall revenue growth fell mainly due to the impact of the Modern Trade business termination BTS-related media faced challenges from overall media spending decline as price dumping from other media players made other mediums temporarily more attractive to agencies. Nevertheless, further enhancement in both top line and profitability is anticipated through new mass transit expansion. As Bangkok s office supply is currently 91% utilized, it is expected that more than 318,000 sq.m. of new office supply to be launched in the next 3 years. Hence, this business unit will benefit from the anticipated new office supply. Following the business restructuring, we are left with more profitable business units. Our gross profit margin increased to 63.5% in 2015/16 from 55.3% in 2014/15. Net profit margins also improved markedly from 28.3% to 44.7%. The Company has almost zero debt. BTS-related Media 86.1% Office Building & Other Media 5 Book value per share KEY RATIOS Gross profit margin (%) 54.6% 57.4% 55.3% 63.5% EBITDA margin (%) 45.4% 47.9% 41.4% 63.5% Net profit margin (%) 31.8% 36.4% 28.3% 44.7% Net debt to equity (times) No leverage 0.3x 0.1x ROA (%) 46.3% 43.1% 27.8% 39.5% ROE (%) 85.3% 60.7% 44.3% 46.2% Section 4: Financial Information & 4Q 15/16 performance 61%84% THB 2,106mn 6% 11.5% 2.4% 33% Modern Trade Media* * The Company terminated the Modern Trade Media business in 4Q 14/15. Therefore, this business unit will no longer generate revenue from 2Q 15/16 onwards. 28

29 Media Industry Overview 2015/16 MEDIA ADSPEND (THB bn) Digital TV, 17.1% TV, 46.4% Newspapers, 10.0% Cable TV, 5.0% 2014/ /16 1 FMCG 40% 40% 2 MOTOR VEHICLES 8% 8% 3 COMMUNICATIONS 7% 6% 4 GOVERNMENT & COMMUNITY ANNOUNCEMENT THB 120bn Source: The Nielsen Company (Thailand) Limited. 6% 6% 5 LEISURE 5% 5% TOP 5 65% 65% OTHERS 35% 35% Radio, 4.8% Cinema, 4.4% Transit, 3.9% Outdoor, 3.7% Magazines, 3.3% Internet, 1.0% In-Store, 0.4% TOP 5 ADSPEND BY BUSINESS SEGMENT OVERALL MEDIA INDUSTRY 2014/ /16 1 FMCG 39% 38% 2 COMUNICATIONS 8% 7% 3 REAL ESTATE 3% 6% 4 VGI MASS TRANSIT RETAIL SHOPS AND STORES 5 MEDIA & MARKETING 3% 6% 5% 5% TOP 5 58% 61% OTHERS 42% 39% 2015/16 THAI ADSPEND VALUE (THB bn) FY 14/15 FY 15/16 % YoY TV % Digital TV % Cable/Satellite TV % Traditional Media* % Cinema % Outdoor % Transit % Internet % In-Store % Total Industry % THAI ADSPEND VS VGI REVENUE (THB mn) (THB mn) 2014/ /16 % YoY Total Industry 121, , % VGI 1,994 2, % 28,755 29,264 28,951 28,894 30,869 32,200 29,250 31,521 30,782 30,774 26,407 26, Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 Q2 14/15 Q3 14/15 Total Industry AdSpend (THB mn) Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 VGI Revenue* *(THB mn) Q4 15/16 Section 1: Media Industry Overview *Includes Newspaper, Magazines and Radio ** Excludes Modern Trade Media Revenue 29

30 2015/16 Key Milestone STRATEGIC DEVELOPMENTS OUR NETWORK 1Q 15/16: 3Q 15/16: 4Q 15/16: Secured advertising contract on 7 green line extension stations Expanded our footprint into aviation media by investing 20% of AERO MEDIA Expanded our network into residential buildings by becoming an exclusive sale agent for ARTISTA 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. RAIL MASS TRANSIT: OFFICE BUILDINGS: CONDOMINIUMS: AVIATION: OUTDOOR: 52 BTS trains 30 BTS stations > 4,000 static displays 2,029 digital screens 135 grade A&B office buildings 1,091 digital screens 219 residential buildings 549 digital screens 13 airports 342 LCD screens 4,500 trolleys 57 aerobridges 658 billboard & networking billboard 678 street furniture Section 2.1: 2015/16 Key Milestone 30

31 2015/16 Overview CONSOLIDATED P&L SNAPSHOT (FINANCIAL STATEMENT) (THB mn) 2015/ /15 % YoY Operating revenue 2,106 2, % Cost of sales 769 1, % Gross profit 1,337 1, % EBITDA 1,336 1, % NPAT from operation 838 1, % NPAT (inc. extra items) % 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% 2015/16 REVENUE CONTRIBUTION CONSOLIDATED P&L SNAPSHOT (W/O MODERN TRADE MEDIA) (THB mn) 2015/ /15 % YoY Operating revenue 2,056 1, % Cost of sales % Gross profit 1,346 1, % EBITDA* 1,245 1, % NPAT from operation % NPAT (inc. extra items) % 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% *excludes extra items 2015/16 REVENUE CONTRIBUTION Office building & other media 13.9% Office building & other media 11.8% THB 2,106mn THB 2,056mn 86.1% BTS-related media 88.2% BTS-related media Section 2.2: Financial Performance 31

32 Financial Performance by Sector BTS-RELATED REVENUE (THB mn) BTS-RELATED REVENUE BREAKDOWN (THB mn) 1,805 1, % YoY % 41.7% % 33.0% / / % 25.3% 2014/ /16 OFFICE BUILDING & OTHER REVENUE (THB mn) Train Station Merchandising and Others OFFICE BUILDING & OTHER REVENUE BREAKDOWN (THB mn) / /16 Section 2.2: Financial Performance +28.6% YoY +23.6% YoY % 82.7% 32.8% Office Building +61.4% YoY 2014/ / % % 17.3% Other Media 32

33 Balance Sheet & Cash Flow ASSETS BREAKDOWN (THB mn) LIABILITY & EQUITY BREAKDOWN (THB mn) Current assets 3,286 3,099 1,042 32% % Current liabilities Non-current liabilities 3,286 1, % 1% 3, % 1% Non-current assets 2,244 68% 2,262 73% Equity 1,829 55% 2,242 72% 31-Mar Mar Mar Mar-16 CASH FLOW (THB mn) CAPEX (THB mn) CFI of THB 154mn CFF of THB 805mn /16 BTS-related Media 93 Office building & Others 65 Total Beginning cash (31/03/15) CFO Asso.com and JV (Invt.&Loan to &Sales) CapEx Int. Income & oth. Dividend Payment CFF Ending Cash (S/T repay) (31/03/16) Section 2.2: Financial Performance 33

34 Agenda Section 1 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 34

35 Nationwide Integrated Media Platform Nationwide Integrated Media Platform within 2 years transit office outdoor aviation digital activation 55% market share > 700,000 viewers reached daily Long term contracts end 2029 & X expected capacity 70% GP margin 63% market share (Grade A&B buildings) > 650,000 viewers reached daily 135 office buildings 219 condominiums 60% GP margin > 37.42% in MACO 178 mega billboards 480 networking billboards 678 street furniture 56% GP margin 20% in Aero Media > 115mn viewers reached annually 342 LCD screens 4,500 trolleys 57 aerobridges Online & Offline 5mn card holders 90 offline merchants > 30mn potential e-wallet members 33mn potential online impressions Targeted 2mn registered loyalty members 16mn monthly s targeted for FY16 2.6mn monthly deliveries (Kerry) proven winner 1 st strategic step growth prospects 35

36 Strong prospect in outdoor advertising in upcountry WHY UPCOUNTRY? 84% of Thailand s population resides up-country 4x the number of households up-country than in Bangkok 75% of household annual income in Thailand is generated upcountry Provincial regions have seen better GRP growth than Bangkok Only 30% of Out-of-Home advertising expenditures were spent in upcountry Sources: Department of Provincial Administration National Statistical Office (Ministry of Information and Communication Technology) Bank of Thailand and Company Research GROSS REGIONAL PRODUCT PER CAPITA (10YRS CAGR) Provincial regions have seen a better GRP growth than Bangkok. UPCOUNTRY NEEDS MORE ADVERTISING (% of national total) Up-country advertising market is still underserved when comparing to the penetration relative to population, households and household income. 16% 84% Population 20% 80% Number of Households 25% 75% Household income STRUCTURAL SHIFT TO UPCOUNTRY Solid growth of population resides up-country 70% 30% Out-of-Home Adspend Bangkok & Vicinities Upcountry 6.0% 3.2% 5.4% 4.5% 5.6% 6.2% 8.3% 8.9% Nationwide Bangkok & Vicinities Central South West East North Northeast Non-Bangkok, (LHS) Bangkok 36

37 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. TRANSACTION SUMMARY acquire 375mn shares from major shareholders number of shares price total investment 375mn shares (or 12.46% of total shares) THB 1.10 per share 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%) 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 tender offer number of shares up to 1,484mn shares (or 0 to 48.79%* of total shares) price total investment source of funds THB 1.10 per share up to THB 1,632mn *Excluded the rest 13.79% of founder group. Cash flows from operation and/or credit facilities support from financial institutions TIMELINE OF ACQUISITION & TENDER OFFER BOD Execute approval SPA* 16 MAR 17 MAR EGM 30 MAY *SPA: Sell and Purchase Agreement PRE VS POST STRUCTURE pre acquisition & tender offer public, 48.79% VGI, 24.96% founder group, 26.26% 12.46% Acquisition done 31 MAY post acquisition & tender offer public, 48.79% (tender offer) VGI, 37.42% Tender offer period 3 JUN 8 JUL 12.46% of founder group are:- 4.99% DCROP Group 4.15% maneerattanporn 3.32% Tansalarak Acquire additional 12.46% from founder group founder group, 13.79% 37

38 MACO: Vehicle to expand our network to upcountry 2014 TRANSACTION PROVEN RECORD REVENUE AND NET PROFIT Invested 751.0mn shares in MACO (or 24.96%) Total investment cost of THB 684.3mn 15% 19% 24% 21% 25% Return on investment of 28%* since May 2014 *Included: 1. Received dividend of THB 42.7mn and dividend to be received of THB 22.5mn on 13 May Gain from sale of MACO W1 of THB 127.8mn Operating revenue (THB mn) Net Profit (THB mn) NPAT margin (%) 2016 INVESTMENT HIGHLIGHTS Strategy Set strategic direction for MACO to be in line with VGI strategic policy Vehicle for billboard expansion Nationwide coverage Control 100% BOD control 80% nominated EXCOM Nominated CEO Expansion potential Organic and M&A Increase digitalization Double Net profit in 5 years ADVERTISING PORTFOLIO Number of Advertising Media (Units) Billboard & Networking Billboard Billboard Networking Billboard Street Furniture Column under BTS Stations Column under Flyover Bridge in BKK City Grip Light Express Express Way Others

39 VGI Pro Forma (after MACO Transaction) Leading Nationwide Media Player VGI PRO FORMA Revenue (THB mn) 2,100 3, % NPAT growth (YoY %) 2015/ /17 39

40 Agenda Section 1 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 40

41 Organisation and Company Structure ORGANISATION STRUCTURE Board of Directors COMPANY STRUCTURE I. SUBSIDIARIES Company / Address Type of Business Listed Shareholding VGI Advertising Media Co., Ltd. Media service No % 888 Media Co., Ltd. Media service No % Company Secretary Point of View (POV) Media Group Co., Ltd. Media service in office buildings No % II. ASSOCIATED Company / Address Type of Business Listed Shareholding Audit Committee Executive Committee Nomination and Remuneration Committee Master Ad Plc. OHM media service Yes 24.96% Aero Media Co., Ltd. Aviation media service No 20.00% Internal Audit Division Chief Executive Officer III. JOINT VENTURE Company / Address Type of Business Listed Shareholding Midas Global Media Co., Ltd. Media service No 11.11% Chief Operating Officer Chief Sales and Marketing Officer Chief Technology Officer Chief Financial Officer Chief Legal and Compliance Officer Section 5: Organisation and Company Structure 41

42 Agenda Section 1 Company Overview 4 Section 2 Thai Media Market Overview 8 Section 3 Business Profile Section 3.1 BTS-related Media 10 Section 3.2 Office Building Media 17 Section 3.3 Other Media 20 Section 4 Financial Information & 2015/16 Performance 28 Section 5 Nationwide Integrated Media Platform 35 Section 6 Organisation and Company Structure 41 Appendices 42

43 Strong management team with proven track record in advertising industry Kavin Kanjanapas VGI: Director & Chairman of Executive 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 Marut Arthakaivalvatee VGI: Director & CEO 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. Oranuch Rujirawona VGI: CMO Ms. Oranuch has more than 35 years in marketing & sales particularly in media industry. She has worked with Grammy Entertainment for 14 years and in other leading media companies including VGI Plc. for more than 20 years. Appendix 1: Management and Board of Directors Suparanan Tanviruch VGI: CFO Ms. Suparanan was appointed as Chief Financial Officer of VGI in Prior to this, she served as CFO of ITV Plc since Altogether, an extensive experiences as a CFO in advertising companies for more than 15 years. Before joining ITV, Suparanan was AVP-Portfolio management at Shin Corporation Plc. for almost 10 years. 43

44 Our Board of Directors Keeree Kanjanapas BTSG and VGI Chairman The founder of BTS Group Holdings, operator of Bangkok s SkyTrain. Mr. Keeree has been Executive Chairman & CEO of Bangkok Mass Transit System Plc. since 2010 and 1996 to 2015, respectively. He brings along valuable business experiences while providing key strategic directions to VGI. Kavin Kanjanapas BTSG: Executive Director & CEO VGI: Director & Chairman of Executive 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 Kong Chi Keung BTSG: Executive Director & Deputy CEO VGI: Director More than 10 years of involvement with VGI as the Director Marut Arthakaivalvatee VGI: Director & CEO 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 Chan Kin Tak VGI: Director & COO Experiences in the retail business with Watsons in Thailand and Hong Kong Surapong Laoha-Unya BTSG: Executive Director VGI: Director His experience as Chief Operating Officer of Bangkok Mass Transit System Plc. since 2006 provides VGI with insights to BTS-related business Assoc.Prof.Jaruporn Viyanant VGI: Independent Director & Chairman of Audit Committee 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. Maneeporn Siriwatanawong VGI: Independent Director & Member of Audit Committee) Extensive experiences in the field of tax audit with the Revenue Department and Internal Auditor with the Bank of Ayudhya Plc. Mana Jantanayingyong VGI: Independent Director & Member of Audit Committee) 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 Appendix 1: Management and Board of Directors 44

45 Bangkok Rail Mass Transit Master Plan 515.3km* by 2029, 42.4% share of Mass Transit commute by 2032 * Include MRTA and BMA projects Sources: Office of Transport and Traffic Policy and Planning and Bangkok Metro Politian Administration. Appendix 2: Bangkok Rail Mass Transit Master Plan 45

46 Existing Bangkok Mass Transit Network Immature Network, 84.8km as of 2014 BLUE BANG SUE - HUA LAMPHONG 20.0km LIGHT GREEN NATIONAL STADIUM BANG WA 14.0km RED PHAYATHAI - SUVARNABHUMI 28.5km DARK GREEN MO CHIT BEARING 22.3km Appendix 2: Existing Bangkok Mass Transit Network 46

47 Potential Developer of Mass Transit Extension BTSG focused on 6 lines: total length of 108.8km Sources: Office of Transport and Traffic Policy and Planning, Mass Rapid Transit Authority of Thailand, Bangkok Metropolitan Administration, Ministry of Transport DARK GREEN NORTH LINE Mo Chit Saphan Mai Khu Khot (18.4km) Civil works progress: 4.7% (as of Feb 2016) Expected O&M award: mid 2016 Target operation: 2020 PINK LINE Khae Rai Min Buri (36.0km) Expected turnkey bidding: 2016 Target operation: GREY LINE Watcharaphol Rama 9 Bridge (26.0km) Feasibility study underway Expected bidding (Phase I): early 2016 Target operation (Phase I): 2019 Phase I: Watcharaphol Thong Lo (16.3km) BTSG is WELL-POSITIONED FOR NEW CONTRACTS Relevant expertise Financial strength Green line advantage New contracts are expected to be on a PPP GROSS COST BASIS Operator to invest in civil works and E&M works with repayment from government Operator given operation contract Variations will be considered LIGHT RAIL TRANSIT (LRT) Bang Na Suvarnabhumi (18.3km) Awaiting EIA approval Expected bidding: 2016 Target operation: 2019 Light Green Line Bang Wa Borommaratchachonnani (7.0km) Expected O&M award: 2017 Target operation: 2019 DARK GREEN SOUTH LINE Bearing Samut Prakarn (12.8km) Civil works progress: 79.3% (as of Feb 2016) Expected O&M award: mid 2016 Target operation: late 2019 Appendix 2: Mass Transit Extensions (focused on 6 lines: 118.5km) 47

48 VGI Warrant Issuance and Stock Dividend WARRANT ISSUANCE: KEY TERMS & CONDITIONS STOCK DIVIDEND TICKER VGI-W1 1:1 STOCK DIVIDEND (INCREASING CAPITAL) TERMS 4 Years EX-RIGHTS DATE 9 July 2014 No. of allocated shares Total shares after increasing capital 3,431,975,575 shares 6,863,978,450 shares EXERCISE PERIOD Quarterly basis WARRANT PRICE ALLOCATION NO. OF WARRANTS EXERCISE RATIO Free EXERCISE PRICE THB 7.00 RATIONALE To existing shareholders at the ratio of 4 VGI existing shares : 1 VGI-W1 Up to 857,993,407 Units 1 VGI-W1 to 2 ordinary share of VGI Free warrants Preferential right to existing shareholders Funding to be used for potential acquisitions/ Capex STOCK AND CASH DIVIDEND Ratio of stock dividend payment 1 VGI existing share: 1 stock dividend or at rate of THB 0.10 per share Cash dividend payment THB per share XD Date 17 Mar 2015 Payment Date 31 Mar 2015 Expected maximum proceeds THB 12,011,067,698 Appendix 3: VGI Warrant and Stock Dividend 48