Reason to Invest in VGI

Reason to Invest in VGI

1. A unique position to grow revenue

VGI has branched out beyond the traditional offline Out-of-Home (“OOH”) to the online world, where we have successfully established ourselves as the market leader in Thailand. With the integration of OOH and our world-class online/digital platforms, bridged by the utilisation of the Rabbit Data, we envisioned ourselves as the leader in Offline-to-Online (“O2O”) Solutions, with the aim to create a seamless and meaningful customer experience both online and offline. Our sales strategy has therefore shifted from solely being a platform provider to one that offers O2O solutions enabling advertisers to reach their target audiences at every stage of the consumer journey with greater efficiency and effectiveness.

2. Diversified world-class assets

Our diversified portfolio consolidates a multitude of OOH advertising channels from transit, outdoor and street to buildings and airports, with over THB 7,000m inventory on hand. Rabbit Group, our digital spearhead, has also partnered with key players in various industries including transportation, logistics, telecommunications, mobile and messaging and micropayment applications; thus allowing us to reach over 40m people with relevant advertising, in the right place, at the right time and with the right message.

3. Leading and exclusive market positions

VGI is the leading (number one or two) provider of OOH media, which is the fastest growing media sector with over 52% market share. Given the high barriers to entry in the mass transit industry, our competitive advantage lies in our unique contract portfolio, where we have secured 30-year exclusive contract with our parent company BTS to be the sole media provider in Bangkok CBD areas. At the same time, our future growth prospect is reinforced by our relationship with BTS given its preeminent role in mass transit development in Thailand, and with 4 to 5 times expected increase in transit media capacity by 2021/22. Meanwhile, our subsidiary business, the Rabbit Group, is also the largest micropayment service provider in Bangkok.

4. Largest and most profitable media company

We are the number one listed media company on SET with a market capitalisation of THB 59,303m (USD 1,786m) as of July 2018. We are also the most profitable OOH media company in Thailand and stand among the top five most profitable OOH media companies in Asia, generating THB 3,936m in total sales revenue with a superior profit margin of 21.5% in 2017/18. Our diversified business portfolio, coupled with our leading position in the industry and financial strength over the past years, clearly indicates VGI’s strong growth potentials. While our dividend policy also promises an attractive return for shareholders, offering no less than 50% of our net profit in dividend payment.

Strategy

Value, growth and innovation are the core elements forming the foundation of our business. Together, they define our strategic direction and structural plan, which constitute the driving force behind our Company’s vision to be the “Pioneering Solutions for Tomorrow”.

Value

We believe in long-term value creation.. Creating sustainable value for our shareholders, partners and society is our fundamental principle.

Growth

We aim to achieve industry-leading growth. Strengthening our unique business units and partnering with key complimentary market leaders around the world is our key growth differentiator.

Innovation

We commit to digital, technologies and R&D excellence to develop and launch new generation products and solutions that meet ever-changing consumer demands.

Outlook and Target:

Results 2017/18 Target 2018/19
Sales development Increase of 29.0% Increase at double digit
EBITDA margin 43.0% 40 – 45%
NPAT margin 21.5% 20 – 25%
Capital expenditure THB 549mn THB 1,100mn