1. BUSINESS PLAN
INB5703. 2013.1. ON CAMPUS
VIX TEAM
Changyi Hou 10269688
Andre Ferrari Francisco 10247228
Na Wu 10191394
Expansion into THAILAND Automated Fare Collection Industry

2. Vix Team
What is the business of Vix ?

3. Vix Team
Organization Overview
Provided
A
Central Clearing
House System
for
Bangkok Train
System
In May, 2012
Thailand
Central Clearing House System
(CCH)
Automated Fare Collection
System
（AFC)
• Australia Based
• Located in 10 countries
• 800 employees

4. Vix Team
Mission & Objective
Mission Objective
 Obtaining persistent profits from
existing projects
 Exploration from existing projects
to future projects
 Expansion from Bangkok to
Thailand
 Existing maintenance projects
 Future new lines AFC projects in
Bangkok
 State transportation AFC and CCH
projects

5. Vix Team
BMCL
Bangkok Metro Company Ltd
BTS
OperatorProjectAFCSupplier
BTS/
Skytrain
Blue
Line
BLUGPurple
Line
Pink
Line
BRT
Line1
CCH
Thales MSI STVIX
SRT
Airport
Link
Red Line
Thales
2014 2015 2014-20162014
BSS
Bangkok SmartcardSystem
Business Status in Bangkok

6. Vix Team
What is the plan for Vix ?

7. Vix Team
BMCL
Bangkok Metro Company Ltd
BTS
OperatorProjectAFCSupplier
BTS/
Skytrain
Blue
Line
BLUGPurple
Line
Pink
Line
BRT
Line1
CCH
Thales MSI STVIX
SRT
Airport
Link
Red Line
Thales
2014 2015 2014-20162014
BSS
Bangkok SmartcardSystem
Stakeholder Analysis
BTS
VIX
JV
OperatorAFCSupplier

8. Vix Team
What is in JV for Vix ?

9. Vix Team
The JV’s Core Competencies
Qualifications
Organisational
competence
Managerial
competence
Norms & Values
• Strong technology and
marketing background
• Profitability-focused
• Highly localized production
and services
• Over 25 years experience
• Bangkok CCH project
• Technology strength
• Big power in the
future AFC projects
• Strong local business
resources
• Central management supports
• Flexible and adaptable
• Flexibility of local team
• Short response time

10. Vix Team
The JV’s Value chain
Maintain
Operate
Exploit
Build System
variations
Data analyses
service to the
customer
Market
extension
Products
&
Projects
JV
Value
Added
Supplier Buyer
Shareholder Shareholder

11. Vix Team
VIRO Analysis
JV
JV
Valuable? Rare?
Costly to
imitate?
Exploited by
Organization?
Competitive
Implication?
Economic
Implication?
YES
YES
YES
YES YES YES
YES Parity
Sustained
Advantage
Normal
Above
Normal
No

12. Vix Team
How to operate it?

13. Vix Team
The JV’s Structure & HR Strategy
Board of Directors
Executive Directors Consultant
Legal
Project
Management
HR/
Accounting
Technical
Dynamic Structure
Marketing
Part-time
Outsource
2 expatriates will be
replaced by local Director
in Year 4
2013 2014 2015 2016 2017
11 15 19 19 20
Numbers of Employees

14. Vix Team
Market strategy
Weakness
Threat
• Initial to the Thailand market, low market share
• Lack of knowledge of Bangkok market
• Global business development processes need to
be developed (co-operation)
• Poor in hardware made
• Aggressive competitors offering similar technic
services and maintenance services
• Time consuming by the new customers to
familiar with the new functionality
• The new market is unstable
• Slow to adapt to the new market requirements
• Varying international standards
• Unique core technology of CCH system
• Integration service capability
• Global presence and experiences
• Low cost basic on the successful CCH project
• Low labor cost
• JV with BTS to help entering Bangkok market
• Bangkok market potential
• Strong position to continue grow business
• Introduction of more automated maintenance
methodology to reduce costs and improve
margins
• Improve governance structure and management
involvement in larger projects
L
• Unique core technology of CCH system
• Low cost basic on the successful CCH project
• Low labor cost
• Introduction of more automated maintenance
methodology to reduce costs and improve
margins
Strength
Opportunity
Generic Strategy
Cost Focus
CCH Market
Cost Leadership
Operation & Maintenance
Alternative Strategy
Market
development
CCH Market
Market
penetration
Operation & Maintenance

15. Vix Team
How is the forecast for the JV ?

16. Vix Team
Scenario Planning
Initial scenario matrix
BTS is seeking for the technical partner to lower the cost and expand the business
TheconstructionofanationalCCHsystemison
thegovernmentagenda
Path 1 Path 2
Path1Path2
Scenario 1 – Win - Win Scenario 3 - Hard fight
Scenario 4 - Fade offScenario 2 - Long Term Partner
JV CCH
JV CCH
JV CCH
JV CCH
70:30
70:30
National National
NationalNational

17. Vix Team
Market Forecast (5 years)
2013 2014 2015 2016 2017
BTS
(48%)
BMLC
(33%)
SRT
(10%)
Government
(10%)
21
Project
s
37M
AUD
Scenario 1 Scenario 2
Whole Market
JV 64%
Project
s
55%
Project
s
33M
AUD
19M
AUD

18. Financial Analysis
Profit After Tax
2.04
7.35
2.46
1.40
1.92
2.04 2.00
0.92 0.99
1.51
-
1
2
3
4
5
6
7
8
2013 2014 2015 2016 2017
Million(AUD)
Scenario 1 Win-Win
Scenario 2 Long-term partner
ASSUMPTION:
 Set-up capital:
 THB$ 50M (AUD$ 1.6M )
 Set-up in Q3, 2013
 Set-up cost:
 THB$ 4M (AUD$ 0.11M)
 Shares:
 Vix 30%
 BTS 70%
 Revenue :
 Operation & maintenance
 New line AFC system
 National CCH project
 Income tax exemption
 Dividend proportion: 50%
Vix Team
2013 2014 2015 2016 2017
2.04 7.35 2.46 1.40 1.92
Scenario1Scenario2
Profit After Tax
(Million/AUD)
Total
15
Growth Rate 260% -67% -43% 37%
2.04 2.00 0.92 0.99 1.51
Profit After Tax
(Million/AUD) 8
Growth Rate -4% -56% 7% 52%

19. Vix Team
Financial Analysis
Total capital employed
2.64
6.31
7.54
8.24
9.20
2.64
3.64
4.10
4.59
5.35
-
1
2
3
4
5
6
7
8
9
10
2013 2014 2015 2016 2017
Million(AUD)
Scenario 1 Win-Win
Scenario 2 Long-term partner
ASSUMPTION:
 Set-up capital:
 THB$ 50M (AUD$ 1.6M )
 Set-up in Q3, 2013
 Set-up cost:
 THB$ 4M (AUD$ 0.11M)
 Shares:
 Vix 30%
 BTS 70%
 Revenue :
 Operation & maintenance
 New line AFC system
 National CCH project
 Income tax exemption
 Dividend proportion: 50%
Initial
capital 2013 2014 2015 2016
1.62 2.64 6.31 7.54 8.24
Scenario1Scenario2
Total capital
employed
(Million/AUD)
2017
Growth Rate 63% 139% 20% 9%
1.62 2.64 3.64 4.10 4.59
Growth Rate 63% 38% 13% 12%
Total capital
employed
(Million/AUD)
12%
16%
9.2
5.35
569% of
Initial Capital
367% of
Initial Capital

20. Vix Team
Risk Assessment – Mitigating the risks
Political
Environmental
Industry
Operational
Financial
Risk Mitigating
• Natural disasters
• BTS lose Government
Contracts
• Change on Legal
&Taxation System
• Changes of Government
• Trade Unions
• Long Contracts
• Government
Partnership

21. Vix Team
Risk Assessment – Mitigating the risks
Political
Environmental
Industry
Operational
Financial
Risk Mitigating
• Natural disasters• Natural disasters
• Disaster recover plan

22. `
Vix Team
Risk Assessment – Mitigating the risks
Political
Environmental
Industry
Operational
Financial
Risk Mitigating
• Natural disasters
• New entrants
• Innovation
• End of product life cycle
• Technological
Advantage
• Product Differentiation
• R&D
• Competitive Advantage

23. Vix Team
Risk Assessment – Mitigating the risks
Political
Environmental
Industry
Operational
Financial
Risk Mitigating
• Natural disasters
• IT problems
• Lack of qualified
workers
• Competition with Vix
outside Thailand
• BTS performance
• Non-Competition
Agreement between
BTS & VIX (other
countries)
• Seeking for other
partner

24. Vix Team
Risk Assessment – Mitigating the risks
Political
Environmental
Industry
Operational
Financial
Risk Mitigating
• Natural disasters
• Financial crisis
• Increase on inputs
prices
• Currency fluctuation
• Interest rates
• Increase on taxation
• Strong financial policies
• Credit management
• Hedging contracts
(currency)

25. Vix Team
Q & A
Thank You