20121107 vgi

2Q 12/13 Earnings Presentation 6 November 2012

VGi Global Media PCL

Prepared by Investor Relations Department VGi Global Media PCL

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

2 Prepared by Investor Relations Department VGi Global Media PCL

Agenda

3

Section 1 Key Highlights

Section 2 Industry Overview

Section 3 Financial Performance

BTS-related Media

Modern Trade Media

Office Building & Other Media

Prepared by Investor Relations Department VGi Global Media PCL

Strong YoY revenue growth:

Revenue grew 39% YoY to THB 735 mn*

Key revenue driver by business unit:

BTS-related Media and Office Building & Other Media rose 21% and 47% QoQ respectively

Improved profit margin:

Gross profit margin improved QoQ to 58% compared to 47% in 1Q 12/13

Significant net profit growth:

Increase of 58% QoQ and 162% YoY to THB 253 mn

Key Highlights


*Excludes other income of THB 3 mn from interest income, gain/loss on FX, etc.

0.4%

1.5%

2.4%

3.9%

5.4%

5.5%

6.8%

13.5%

60.5%

0.5%

2.4%

2.5%

3.9%

4.3%

5.3%

10.2%

12.8%

58.0%

Internet

In-Store

Transit

Outdoor

Magazines

Radio

Cinema

Newspapers

TV

YTD 2012 YTD 2011 % Growth

Total Media Industry THB 87,438 mn* THB 80,917 mn* 8.1%

Mass Transit Media THB 2,151 mn THB 1,956 mn 10.0%

In-Store Media THB 2,141 mn THB 1,206 mn 77.6%

Thai Media Market Share Comparison (1 Jan – 30 Sep 2011 & 2012)

Industry Overview: Thai Media Market Share


Source: The Nielsen Company (Thailand) Limited

Transit

In-Store

*Excludes classified and house ads.

YTD 2011

YTD 2012

Market Value

AD SPENDING (1 JAN – 30 SEP 2012)

1 FMCG 93%

2 MOTOR VEHICLE ACCESSORIES 2%

3 PHOTOGRAPHIC PRODUCTS 1%

4 MOTOR VEHICLES 1%

5 COMMUNICATIONS 0.3%

6 AUDIO/VISUAL ELECTRICAL PRODUCTS

0.3%

7 LEISURE 0.3%

8 PHARMACEUTICALS 0.3%

9 REAL ESTATE 0.2%

10 INSURANCE 0.2%

TOP 10 99%

OTHERS 1%

Top 10 Ad Spending by Business Segments (1 Jan - 30 Sep 2012)

Industry Overview: Ad Spending by Business Segment



OVERALL MEDIA INDUSTRY VGI MASS TRANSIT VGI IN-STORE

AD SPENDING (1 JAN – 30 SEP 2012)

1 FMCG 38%

2 COMMUNICATIONS 10%

3 TRAVEL & TOURS 5%

4 RETAIL SHOPS/STORES 4%

5 REAL ESTATE 4%

6 FOOD OUTLETS & RESTAURANTS

4%

7 LEISURE 4%

8 PHOTOGRAPHIC PRODUCTS 3%

9 BANKS 3%

10 TRANSPORTATION 2%

TOP 10 77%

OTHERS 23%

AD SPENDING* (1 JAN – 30 SEP 2012)

1 FMCG 42%

2 MOTOR VEHICLES 8%

3 GOVERNMENT & COMMUNITY ANNOUNCEMENT

6%

4 COMMUNICATIONS 6%

5 LEISURE 4%

6 RETAIL SHOPS/STORES 4%

7 BANKS 3%

8 REAL ESTATE 2%

9 FOOD OUTLETS & RESTAURANTS

2%

10 MEDIA & MARKETING 2%

TOP 10 79%

OTHERS 21%

*Excludes classified and house ads.

AD SPENDING* (1 JAN - 30 SEP 2012)

1 UNILEVER (THAI) HOLDINGS 6%

2 TOYOTA MOTOR THAILAND CO., LTD.

2%

3 COCA-COLA (THAILAND) 2%

4 PROCTER & GAMBLE (THAILAND)

2%

5 TOTAL ACCESS COMMUNICATIONS

2%

6 TRI PETCH ISUZU SALES CO., LTD.

2%

7 L'OREAL (THAILAND) LTD. 2%

8 BEIERSDORF (THAILAND) CO., LTD.

2%

9 NESTLE (THAI) LTD. 1%

10 ADVANCE INFO SERVICE PCL. 1%

TOP 10 21%

OTHERS 79%

AD SPENDING (1 JAN - 30 SEP 2012)


2 BEIERSDORF (THAILAND) CO., LTD.

9%

3 UNICHARM (THAILAND) CO., LTD.

8%

4 FRIESLAND CAMPINA (THAILAND) PCL.

6%

5 PROCTER & GAMBLE (THAILAND)

6%

6 DUTCH MILL (THAILAND) 6%

7 KAO COMMERCIAL (THAILAND) CO., LTD.

6%

8 JOHNSON & JOHNSON (THAILAND) LTD.

4%

9 L'OREAL (THAILAND) LTD. 3%

10 F&N DAIRIES (THAILAND) LIMITED

3%

TOP 10 66%

OTHERS 34%

Top 10 Ad Spending by Advertisers (1 Jan - 30 Sep 2012)


AD SPENDING (1 JAN - 30 SEP 2012)


2 REAL MOVE CO., LTD. 3%

3 ADVANCE INFO SERVICE PCL. 3%

4 CEREBOS (THAILAND) LTD. 2%

5 OISHI GROUP PUBLIC CO., LTD. 2%

6 C.P.INTERFOOD (THAILAND) CO., LTD

2%

7 CANON MARKETING THAILAND 2%

8 OSOTSPA CO., LTD. 2%

9 KAO COMMERCIAL (THAILAND) CO., LTD.

2%

10 THAI AIR ASIA CO.,LTD. 2%

TOP 10 23%

OTHERS 77%

Industry Overview: Ad Spending by Advertisers

OVERALL MEDIA INDUSTRY VGI MASS TRANSIT VGI IN-STORE

*Excludes classified and house ads. Source: The Nielsen Company (Thailand) Limited

Bus 16.4%

BTS 55.0%

MRT 9.2%

Industry Overview: Segment Market Share



Mass Transit Media Market Share In-Store Media Market Share

Period: 1 Jul – 30 Sep 2012 (3 months)

VGI Market Share: 55.0% VGI Market Share: 91.4%

Period: 1 Jul – 30 Sep 2012 (3 months)

Tops

5.7%

Watsons 0.2%

Tesco Lotus 56.7% Big C

34.5%

Others* 2.9%

*Others include Siam Paragon, The Emporium, MBK, Tang Hua Seng, Central

Airport 19.3%

Market share based on industry standard rate card without average industry discount.

409

349 (397)

(70) (0.062) 291

100 200 300 400 500 600 700 800

7%


51%

BTS related Media

42%

Modern Trade Media


(THB mn) 2Q

12/13 2Q

11/12 %

YoY 1Q

12/13 %

QoQ Revenue* 735 528 39% 650 13% Cost of sales 310 320 -3% 346 -10% Gross profit 424 208 104% 305 39% EBITDA 360 169 113% 238 51%

Net profit 253 96 162% 160 58%

Gross profit margin

58% 39% 47%

EBITDA margin 49% 32% 37%

Net profit margin 34% 18% 25%

Revenue from BTS related Media rose by 21.0% QoQ to THB 372.1 mn

Cost of sales fell by 10.2% QoQ primarily as a result of reduction in BTS concession fee to 5%

Decrease in cash flow mainly from settlement of accounts payable in terminating the old BTSC concession agreement and increase in CAPEX

Key Factors Cash Flow Movement

P&L Snapshot 2Q 12/13 (THB mn)

2Q 2012/13 Performance


2Q 12/13 Revenue Breakdown

THB mn

Beginning Cash

(30/6/12)

Settlement to BTSC

CFO before BTSC

settlement CFI CFF

Ending Cash

(30/9/12)

CFO (48)

36%

37%

37%

54%

74%

2Q 11/12

1Q 12/13

2Q 12/13

293 308

372

2Q 11/12 1Q 12/13 2Q 12/13

45%

46%

44%

64%

82%

2Q 11/12

1Q 12/13

2Q 12/13

52%

28%

13% 7%

50%

28%

15% 7%

52%

28%

13% 7%

Train Station Merchandising Space Others

2Q 11/12

1Q 12/13

2Q 12/13

Merchandising Space

Gross Profit Margin

Historical Revenue (THB mn)

BTS-related Media


Revenue Breakdown

EBITDA (%)

EBITDA Margin

Gross Profit Margin (%)

Scenario: % Margin at 50% conc. fee

31%

26%

26%

2Q 11/12

1Q 12/13

2Q 12/13

215

307 311

2Q 11/12 1Q 12/13 2Q 12/13

23%

15%

17%

2Q 11/12

1Q 12/13

2Q 12/13

69%

9% 22%

75%

8% 16%

71%

10% 19%

Sales Floor Non-Sales Floor Multimedia

2Q 11/12 1Q 12/13 2Q 12/13

Gross Profit Margin


Modern Trade Media


Revenue Breakdown

EBITDA (%) Gross Profit Margin (%)

EBITDA Margin

60%

68%

64%

2Q 11/12

1Q 12/13

2Q 12/13

66%

79%

74%

2Q 11/12

1Q 12/13

2Q 12/13

100%

0% 0%

82%

18% 0%

80%

15% 5%

Office bldg. LED CU

2Q 11/12

1Q 12/13

2Q 12/13

20

35

52

2Q 11/12 1Q 12/13 2Q 12/13

Gross Profit Margin




Revenue Breakdown

EBITDA (%) Gross Profit Margin (%)

EBITDA Margin

Current Ratio

2Q 12/13: 1.6x 2Q 11/12: 1.0x

Return on Equity*

2Q 12/13: 144.7% 2Q 11/12: 95.5%

Key Financial Ratios

Assets Breakdown (THB mn)

2Q 2012/13 Balance Sheet


Liabilities and Equity Breakdown (THB mn)

342 379

1,209 1,125

1,550 1,504

1Q 12/13 2Q 12/13

547 800

17

17

987 687

1,550 1,504

1Q 12/13 2Q 12/13

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Equity

Return on Assets*

2Q 12/13: 60.2% 2Q 11/12: 30.1%

78%

22%

75%

25%

64%

35%

1%

46%

53%

1%

* annualized


Appendices

Financial Statement – Income Statement


Income Statement (THB mn) 2Q 12/13 2Q 11/12 % YoY 1Q 12/13 % QoQ

Revenue* 734.9 528.1 39.2% 650.3 13.0%

Cost of sales 310.4 319.7 -2.9% 345.6 -10.2%

Gross profit 424.5 208.4 103.7% 304.7 39.3%

Selling and administrative expenses 93.7 71.4 31.3% 94.8 -1.1%

EBITDA 360.1 168.7 113.5% 237.8 51.4%

Depreciation & Amortisation 26.4 24.7 7.0% 24.5 7.9%

EBIT 333.7 144.0 131.7% 213.3 56.4%

Finance cost .1 .1 -42.2% .1 -0.8%

EBT 333.6 143.9 131.9% 213.3 56.4%

Corporate income tax 80.5 47.4 69.8% 53.4 50.8%

Net profit 253.1 96.5 162.4% 159.9 58.3%

EPS (THB per share) 0.92 0.96 -4.2% 0.82 12.2%


Balance Sheet (THB mn) 30 Sep 12 30 Jun 12 % Change

Cash and cash equivalents 291.1 408.6 -28.8%

Trade and other receivables 726.1 700.0 3.7%

Other current assets 107.7 100.2 7.4%

Total current assets 1,124.9 1,208.8 -6.9%

Plant, property and equipment 272.4 227.8 19.6%

Other non-current assets 106.6 113.8 -6.4%

Total non-current assets 379.0 341.6 11.0%

Total assets 1,503.9 1,550.4 -3.0%

Trade and other payables 136.8 473.6 -71.1%

Accrued expenses 306.8 278.1 10.3%

Corporate income tax payable 107.5 99.0 8.6%

Other current liabilities 135.4 135.9 -0.4%

Total current liabilities 686.5 986.5 -30.4%

Total non-current liabilities 17.2 16.5 4.2%

Total liabilities 703.8 1,003.0 -29.8%

Registered capital at par THB 1 each 400.0 400.0 0.0%

Issued and fully paid capital at par THB 1 each 274.0 274.0 0.0%

Retained earnings 490.4 237.3 106.6%

Other shareholders' equity 35.7 36.1 -1.0%

Total shareholders' equity 800.1 547.4 46.2%

Total liabilities and shareholders' equity 1,503.9 1,550.4 -3.0%

Financial Statement – Balance Sheet


Financial Statement – Cash Flow Statement


Cash Flow Statement (THB mn) 2Q 12/13 2Q 11/12 % YoY 1Q 12/13 % QoQ

Earnings (loss) before tax 333.6 143.9 131.9% 213.3 56.4%

Adjustment to reconcile earnings (loss) before tax:

Depreciation and amortisation 26.4 24.7 6.9% 24.5 7.7%

Other adjustments 0.7 0.5 27.5% 0.7 -1.9%

Decrease (increase) in operating assets (25.9) (48.5) -46.7% (208.3) -87.6%

Increase (decrease) in operating liabilities (310.4) (117.5) 164.1% (74.6) 316.1%

Cash paid for interest expenses 0.0 (0.0) N.A. 0.0 N.A.

Cash paid for corporate income tax (72.2) (42.4) 70.4% (10.3) 599.3%

Net cash from (used in) operating activities (47.8) (39.4) 21.3% (54.7) -12.6%

Investment in subsidiaries and associates 0.0 0.0 N.A. 0.0 N.A.

Proceeds from disposals of equipment 0.4 0.3 58.1% 0.0 N.A.

Cash paid for acquisition of intangible assets (0.8) (0.1) 950.7% (1.6) -51.0%

Cash paid for acquisition of equipment (69.3) (12.3) 463.9% (8.9) 675.3%

Net cash from (used in) investing activities (69.6) (12.1) 476.4% (10.5) 562.8%

Repayment of liabilities under finance lease agreements 0.0 (0.4) -100.0% 0.0 N.A.

Dividend paid 0.0 (250.0) -100.0% (80.0) -100.0%

Proceeds from issuance of share capital 0.0 0.0 N.A. 174.0 -100.0%

Net cash from (used in) financing activities 0.0 (250.4) -100.0% 94.0 -100.0%

Decrease (increase) in translation adjustments (0.1) 0.3 -119.0% 0.1 -145.3%

Net increase (decrease) in cash and cash equivalents (117.5) (299.9) -60.8% 27.4 -529.5%

Cash and cash equivalents at the beginning of the period 408.6 591.2 -30.9% 381.3 7.2%

Cash and cash equivalents at the end of the period 291.1 291.2 0.0% 408.6 -28.8%

20121107 vgi

Documents

Transcript of 20121107 vgi