1. VGi Global Media PCL
2Q 12/13 Earnings Presentation
6 November 2012
Prepared by Investor Relations Department
VGi Global Media PCL
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.
Prepared by Investor Relations Department
VGi Global Media PCL
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3. Agenda
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
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4. Key Highlights
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
*Excludes other income of THB 3 mn from interest income, gain/loss on FX, etc.
Prepared by Investor Relations Department
VGi Global Media PCL
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5. Industry Overview: Thai Media Market Share
Thai Media Market Share Comparison (1 Jan – 30 Sep 2011 & 2012)
58.0%
TV
60.5%
12.8%
Newspapers
13.5%
10.2% YTD 2012
Cinema
6.8% YTD 2011
5.3%
Radio
5.5%
4.3%
Magazines
5.4%
3.9%
Outdoor
3.9%
Market Value
Transit
Transit 2.5%
2.4% YTD 2012 YTD 2011 % Growth
In-Store
In-Store 2.4% Total Media Industry THB 87,438 mn* THB 80,917 mn* 8.1%
1.5%
Mass Transit Media THB 2,151 mn THB 1,956 mn 10.0%
0.5%
Internet
0.4% In-Store Media THB 2,141 mn THB 1,206 mn 77.6%
*Excludes classified and house ads.
Source: The Nielsen Company (Thailand) Limited
Prepared by Investor Relations Department
VGi Global Media PCL
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6. Industry Overview:
Ad Spending by Business Segment
Top 10 Ad Spending by Business Segments (1 Jan - 30 Sep 2012)
OVERALL MEDIA INDUSTRY VGI MASS TRANSIT VGI IN-STORE
AD SPENDING* AD SPENDING AD SPENDING
(1 JAN – 30 SEP 2012) (1 JAN – 30 SEP 2012) (1 JAN – 30 SEP 2012)
1 FMCG 42% 1 FMCG 38% 1 FMCG 93%
2 MOTOR VEHICLES 8% 2 COMMUNICATIONS 10% 2 MOTOR VEHICLE ACCESSORIES 2%
GOVERNMENT & COMMUNITY
3 6% 3 TRAVEL & TOURS 5%
ANNOUNCEMENT 3 PHOTOGRAPHIC PRODUCTS 1%
4 COMMUNICATIONS 6% 4 RETAIL SHOPS/STORES 4%
4 MOTOR VEHICLES 1%
5 LEISURE 5 REAL ESTATE 4%
4% 5 COMMUNICATIONS 0.3%
FOOD OUTLETS &
6 RETAIL SHOPS/STORES 4% 6 4% AUDIO/VISUAL ELECTRICAL
RESTAURANTS 6 0.3%
PRODUCTS
7 BANKS 3% 7 LEISURE 4%
7 LEISURE 0.3%
8 REAL ESTATE 2% 8 PHOTOGRAPHIC PRODUCTS 3%
8 PHARMACEUTICALS 0.3%
FOOD OUTLETS & 9 BANKS 3%
9 2% 9 REAL ESTATE 0.2%
RESTAURANTS
10 MEDIA & MARKETING 2% 10 TRANSPORTATION 2% 10 INSURANCE 0.2%
TOP 10 79% TOP 10 77% TOP 10 99%
OTHERS 21% OTHERS 23% OTHERS 1%
*Excludes classified and house ads. Source: The Nielsen Company (Thailand) Limited
Prepared by Investor Relations Department
VGi Global Media PCL
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7. Industry Overview:
Ad Spending by Advertisers
Top 10 Ad Spending by Advertisers (1 Jan - 30 Sep 2012)
OVERALL MEDIA INDUSTRY VGI MASS TRANSIT VGI IN-STORE
AD SPENDING* AD SPENDING AD SPENDING
(1 JAN - 30 SEP 2012) (1 JAN - 30 SEP 2012) (1 JAN - 30 SEP 2012)
1 UNILEVER (THAI) HOLDINGS 6% 1 UNILEVER (THAI) HOLDINGS 3% 1 UNILEVER (THAI) HOLDINGS 16%
TOYOTA MOTOR THAILAND CO., BEIERSDORF (THAILAND) CO.,
2 2% 2 REAL MOVE CO., LTD. 3% 2 9%
LTD. LTD.
3 COCA-COLA (THAILAND) 2% 3 ADVANCE INFO SERVICE PCL. 3% UNICHARM (THAILAND) CO.,
3 8%
LTD.
PROCTER & GAMBLE 4 CEREBOS (THAILAND) LTD. 2% FRIESLAND CAMPINA
4 2% 4 6%
(THAILAND) (THAILAND) PCL.
TOTAL ACCESS 5 OISHI GROUP PUBLIC CO., LTD. 2%
5 2% PROCTER & GAMBLE
COMMUNICATIONS C.P.INTERFOOD (THAILAND) 5 6%
6 2% (THAILAND)
TRI PETCH ISUZU SALES CO., CO., LTD
6 2% 6 DUTCH MILL (THAILAND) 6%
LTD.
7 CANON MARKETING THAILAND 2% KAO COMMERCIAL (THAILAND)
7 L'OREAL (THAILAND) LTD. 2% 7 6%
CO., LTD.
8 OSOTSPA CO., LTD. 2%
BEIERSDORF (THAILAND) CO., JOHNSON & JOHNSON
8 2% KAO COMMERCIAL (THAILAND) 8 4%
LTD. 9 2% (THAILAND) LTD.
CO., LTD.
9 L'OREAL (THAILAND) LTD. 3%
9 NESTLE (THAI) LTD. 1%
10 THAI AIR ASIA CO.,LTD. 2% F&N DAIRIES (THAILAND)
10 ADVANCE INFO SERVICE PCL. 1% 10 3%
LIMITED
TOP 10 23% TOP 10 66%
TOP 10 21%
OTHERS 79% OTHERS 77% OTHERS 34%
*Excludes classified and house ads. Source: The Nielsen Company (Thailand) Limited
Prepared by Investor Relations Department
VGi Global Media PCL
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8. Industry Overview: Segment Market Share
Mass Transit Media Market Share In-Store Media Market Share
Period: 1 Jul – 30 Sep 2012 (3 months) Period: 1 Jul – 30 Sep 2012 (3 months)
VGI Market Share: 55.0% VGI Market Share: 91.4%
Watsons 0.2% Others* 2.9%
Tops
MRT
9.2% Bus 5.7%
16.4%
Airport
19.3% Tesco Lotus
56.7% Big C
BTS 34.5%
55.0%
*Others include Siam Paragon, The Emporium, MBK, Tang Hua Seng, Central
Market share based on industry standard rate card without average industry discount.
Source: The Nielsen Company (Thailand) Limited
Prepared by Investor Relations Department
VGi Global Media PCL
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9. 2Q 2012/13 Performance
P&L Snapshot 2Q 12/13 (THB mn) 2Q 12/13 Revenue Breakdown
2Q 2Q % 1Q %
(THB mn)
12/13 11/12 YoY 12/13 QoQ BTS related Media
Revenue* 735 528 39% 650 13% 51%
Cost of sales 310 320 -3% 346 -10%
Gross profit 424 208 104% 305 39%
EBITDA 360 169 113% 238 51% Office Building
& Other Media Modern Trade
Net profit 253 96 162% 160 58% Media
7%
42%
Gross profit
58% 39% 47%
margin
EBITDA margin 49% 32% 37%
Net profit margin 34% 18% 25% *Excludes other income of THB 3 mn from interest income, gain/loss on FX, etc.
Cash Flow Movement Key Factors
THB mn CFO (48) Revenue from BTS related Media rose by 21.0%
(397)
QoQ to THB 372.1 mn
800 349
700
600
409
Cost of sales fell by 10.2% QoQ primarily as a
500
400 (70) (0.062) 291 result of reduction in BTS concession fee to 5%
300
200
100 Decrease in cash flow mainly from settlement of
Beginning CFO before Ending accounts payable in terminating the old BTSC
Settlement
Cash BTSC
to BTSC
CFI CFF Cash concession agreement and increase in CAPEX
(30/6/12) settlement (30/9/12)
Prepared by Investor Relations Department
VGi Global Media PCL
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12. Office Building & Other Media
Historical Revenue (THB mn) Revenue Breakdown
2Q 11/12
52
1Q 12/13
2Q 12/13
35
100%
20 82% 80%
0% 18% 15% 0% 0% 5%
2Q 11/12 1Q 12/13 2Q 12/13 Office bldg. LED CU
Gross Profit Margin EBITDA Margin
Gross Profit Margin (%) EBITDA (%)
2Q 12/13 74% 2Q 12/13 64%
1Q 12/13 79% 1Q 12/13 68%
2Q 11/12 66% 2Q 11/12 60%
Prepared by Investor Relations Department
VGi Global Media PCL
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13. 2Q 2012/13 Balance Sheet
Assets Breakdown (THB mn) Liabilities and Equity Breakdown (THB mn)
1,550 1,504 1,550 1,504
687 46%
Current liabilities 987 64%
Current assets 1,209 78% 1,125 75%
17 1%
Non-current
liabilities 17 1%
800 53%
Equity 547 35%
Non-current assets 342 22% 379 25%
1Q 12/13 2Q 12/13 1Q 12/13 2Q 12/13
Key Financial Ratios
Return on Assets* Return on Equity* Current Ratio
2Q 12/13: 60.2% 2Q 12/13: 144.7% 2Q 12/13: 1.6x
2Q 11/12: 30.1% 2Q 11/12: 95.5% 2Q 11/12: 1.0x
* annualized
Prepared by Investor Relations Department
VGi Global Media PCL
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14. Appendices
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VGi Global Media PCL
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15. 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%
*Excludes other income of THB 3 mn from interest income, gain/loss on FX, etc.
Prepared by Investor Relations Department
VGi Global Media PCL
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16. Financial Statement – Balance Sheet
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%
Prepared by Investor Relations Department
VGi Global Media PCL
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17. 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%
Prepared by Investor Relations Department
VGi Global Media PCL
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