2017/18: A transformational year and the most lucrative year yet for VGI Group

The past fiscal year was one of the most lucrative years for VGI. We achieved a record revenue ofTHB 3,936 million – a significant growth of 29%, and the highest in the company’s history. Our EBITDAexpanded by 25% to THB 1,691 million, while our adjusted net profit rose considerably by 28% to THB964 million.

All of our business segments have contributed to this success. The diversification of our product mix;the extended digital portfolio of Master Ad Plc (MACO) – our main outdoor media service provider –and the synergies between VGI and Rabbit Group – our lifestyle solutions company – are among thekey factors.

“Our strategy is clear, VGI branched out beyond being an Out-of-Home (“OOH”) media provider tothe online world, where we have successfully integrated our world-class offline and online platformsto create an Offline-to-Online (“O2O”) advertising service, thereby solidifying our role as the marketleader in the country. In fact, this strategy has proven to be a major factor driving our strongperformance, helping to generate additional income of THB 336 million. This year, we alsocommenced our collaboration with AIS, the leading telecommunications operator; hence we canexpect to see more positive results in the year to come,” said Nelson Leung, Deputy CEO of VGI.

On 16 May 2018, VGI’s Board of Directors approved an intention to sell VGI Malaysia to Master AdPlc, VGI’s subsidiary. VGI Malaysia is our overseas platform with a diversified OOH business portfoliocovering transit media in Malaysia and Indonesia, airports, cinemas, buses as well as modern trade.“We want to place a stronger focus on building the most robust Offline-to-Online ecosystem inThailand and have seized this great opportunity to sell our international business to MACO, who willbe our arm’s-length for regional expansion,” said Leung.

The Board has also approved an intention to acquire Kerry Express Co., Ltd (“Kerry”), Thailand’sleading parcel delivery company. Kerry Express expanded its business alongside the e-commerce andsocial media booms in recent years. Today, Kerry Express delivers more than 750,000 parcels perday via its 600 distribution centres, 12,000 vehicles and 2,000 service points. Kerry Express is also anactive partner of Rabbit LinePay, it pioneered LinePay-on-delivery (“LOD”) service since July 2017.Now Kerry Express is one of Rabbit LinePay’s largest merchants. In the 2017 financial year, it made atotal revenue of over THB 6,578 million obtaining a net profit of THB 733 million, an increase by 105%and 138% from 2016, respectively

“With the acceleration of Internet access and the increasing popularity of smartphones, theadvertising landscape is rapidly changing. Digital and online marketing is now the “go–to” choice foradvertisers. Therefore, advertising is no longer just about creating awareness, but engagingconsumers with brands. The logistics capabilities enhanced through our partnership with KerryExpress will enable us to effectively deliver our services to respond to this fast-growing trend. Weare confident this new business approach will contribute to our future success, as reflected in ournew vision “Pioneering Solutions for Tomorrow” to be unveiled on May 23,” said Leung.