INTOUCH 1Q18 Result Opportunity Day

Transcription

1 INTOUCH 1Q18 Result Opportunity Day The Stock Exchange of Thailand 15 May 2018

2 Normalized profit growth driven by AIS Unit : Baht million Lower revenue Higher bad debt & warranty cost Normalized net profit +1.9% Net profit +17% ,119 Mobile revenue +3.1% driven by higher data usage of 7.6GB/sub/month and postpaid segment expansion 3,640 Handset margin improved Lower USO fee rate 1Q17 AIS THCOM INTOUCH & Others Gain on sale CSL 1Q18 *Others = ITAS, ITV, VC, and Intouch Media *

3 May-17 May-17 Jun-17 Jun-17 Jul-17 Jul-17 Jul-17 Aug-17 Aug-17 Sep-17 Sep-17 Oct-17 Oct-17 Nov-17 Nov-17 Dec-17 Dec-17 Jan-18 Jan-18 Jan-18 Feb-18 Feb-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 More opportunity offers from higher discount to NAV gap Bt 62.0 INTOUCH Market Price Premium(Discount) to NAV (10%) 60.0 (15%) (20%) (25%) 52.0 (30%) May 18 Discount to NAV = 28.16% (35%)

4 InVent created higher portfolio value Investment Policy Unit : Baht million Portfolio Value Monetize Bt200mn / year Early & growth stage TMT & Digital Cost Unrealized Value Follow-on investment Q Current value Total 13 investment : Bt402mn Social Nation

5 1Q18 Highlights Focus on professional generated content Started 4 Original Series with LINETV Scale up UGC platforms Established Six Network PTE. LTD to do ICO + Successfully launched Wongnai Travel with high customer satisfaction Proceed to IPO as planned GMV increases 18% QoQ (SGD 143M) Number of transaction increases by 30% QoQ >1,000,000 orders per month Successfully tapped into MICE business by being a partner with TCEB (4 Events) 250% increase in GMV growth QoQ

6 1Q18 Key Financial Highlights Baht million 1Q17 4Q17 1Q18 %YoY %QoQ FY18 Guidance Service revenue ex. IC & equipment rental 31,364 32,611 33, % 1.6% Service revenue 32,451 33,717 34, % 2.5% +7-8% Increase (2% from CSL) Sales revenue 6,407 7,488 6, % 15% Decline Total revenue 38,858 41,205 40, % 0.7% Cost of service 16,256 17,018 17, % 1.5% Total SG&A 5,439 6,338 6,336 17% - EBITDA 17,347 18,454 18, % 2.4% EBITDA margin ex. equipment rental 44.6% 44.8% 46.9% 2.3% 2.1% 45-47% Sales margin -6.7% -0.6% -1.1% 5.6% 0.5% Near zero margin Capex 11,509 7,286 6,467 44% 11% Bt35-38bn

7 Mobile revenue improved from data usage and postpaid segment Mobile revenue improved 3.1% YoY and 0.5% QoQ, underpinned by increased demand for data, 4G adoption and expanded postpaid segment, despite softer prepaid net addition. In 1Q18, postpaid revenue grew double digits and contributed 43% by segment Subscribers mix Data usage and 4G adoption 4G handset penetration (% to total subscribers) Mobile data revenue (% to mobile revenue) 35% 39% 42% 46% 50% 53% 55% 58% 59% 60% 1Q17 2Q17 3Q17 4Q17 1Q18 Revenue mix 60% 50% 80% 90% 100% 40% 30% 70% 60% 20% 50% 40% 10% 10% 20% 30% 0% Postpaid subscribers Prepaid subscribers Prepaid revenue contribution Postpaid revenue contribution 84% 83% 82% 82% 81% 16% 17% 18% 18% 19% 1Q17 2Q17 3Q17 4Q17 1Q18 61% 60% 58% 58% 57% 39% 40% 42% 42% 43% 1Q17 2Q17 3Q17 4Q17 1Q18

8 AIS Fibre performance FBB Continue to focus on quality customers with improved acquisition rate FBB subscriber ( 000) ARPU (Baht/month) FBB net additions ( 000) 1,200 1, Q17 2Q17 3Q17 4Q17 1Q Q17 2Q17 3Q17 4Q17 1Q18 Join AIS Fibre + up to 4 AIS mobile numbers, get extra privileges for a family Free 2GB Mobile data HBO movies & series on mobile + World class cartoons at home Free call to 1 AIS number Get privileges for Serenade Emerald and extra meals & movies privileges Focus on acquiring quality subscribers through convergence services and Family Extra package to leverage existing mobile customer base. Offered more affordable high-speed packages to attract high-end customers while maintained the same price on entry packages. Improved AIS Fibre performance with +85% YoY and +6% QoQ revenue while subscribers +50,600 to 571,800 amidst competitive environment.

9 Digital services add on variety of contents & expand further into digital money segment Digital contents Digital contents 2 new channels including CNN and Cartoon Network, available on AIS PLAY and PLAYBOX on the go at home available on both AIS PLAY and AIS PLAYBOX Continued to add value and create differentiation through digital contents On top packages: Mao Mao Entertain AIS Rabbit LINE-Pay On 5 th March 2018, AIS, through mpay, has entered into 33.33% stake (Bt788mn) in a joint venture with Rabbit LINE Pay, an e- Money platform that connect with Bangkok Mass Transits and is embedded in Line chat application. To strengthen AIS digital life services provider position by leveraging customer bases, platform, channels of AIS and partners to enhance mobile money for both AIS and non-ais customers Korean series Hollywood movies Karaoke *FUP: speed drop to 64kbps after 300MB Free internet in ViU, Hook, Karaoke apps + Bt19/day 512Kbps* or Bt34/day for UL 4Mbps +2.6mn users +45mn users +8.5mn users

10 1Q18 Key Financial Highlights Baht million 1Q17 4Q17 1Q18 %YoY %QoQ Satellite and related services 2,018 1,463 1,504 25% 2.8% Cost of sales and services 1,427 1,280 1,001 30% 22% Satellite EBITDA * % 178% Net profit attributable to Thaicom 259 (3,190) 1, % n/a Normalized net profit attributable to Thaicom** 259 (520) (28) 111% n/a EBITDA margin 47% 12%* 31% 16% 19% *Satellite EBITDA & EBTIDA margin excl. impairment of satellite assets under concession **Normalized net profit attributable to Thaicom excl. loss from impairment and profit from sale of CSL s share

11 1Q18 Commercial Highlights Broadcast business Signed a multi-year contract with Canal+ to strengthen a pay-tv direct-tohome (DTH) platform in Myanmar The number of satellite TV increased 38 channels QoQ (from 1,003 to 1,041 channels) HD channels increased from 143 to 153 channels Broadband business Signed a bulk bandwidth service agreement with We are IT Philippines (WIT) for the entire TC-4 capacity over the Philippines to support nationwide enterprise and government projects Adjacent business Thaicom expanded Maritime service in Thailand on 7 additional vessels (total 27 vessels) LOOX TV application reached ~400,000 downloads

12 Satellite performance improvement Satellite Revenue Unit: Baht million Broadband Conventional TV Capacity Utilization Broadband Conventional TV 1,956 50% 50% 1,394 1,462 38% 39% 61% 62% 1Q17 4Q17 1Q18 51% 53% 59% 26% 26% 1Q17 4Q17 1Q18 62% 61% 59% Satellite revenue was Bt1,462mn. QoQ, +5% due to service upgrade from standard definition (SD) to high definition (HD) of Thai broadcasters and ramp-up of Thaicom 4 clients. YoY, -25% due to the decrease of market price and the churn of major customers during 2Q-4Q17

13 Moving Forward Core Business Broadcast: To expand broadcast services in Greater Mekong Sub region and South Asia To enhance customers by offering value-added and adjacent services Broadband: To find new prospects to replace the major customer churns To increase bandwidth utilization in potential markets such as India and Philippines Adjacent Business LOOX: To support broadcast customers by recommending contents to viewers and providing viewing information to the customers To have new revenue streams from ads, data and value-added services NAVA: To grow maritime services in Thailand and Japan by leveraging strengths of satellite, the only platform to provide services To expand to other countries in APAC with partners Cambodian DTV Network: To vertically expand into the direct-to-home (DTH) market in Cambodia To explore pay-tv business opportunity by leveraging its existing 600K subscribers

14 Average sales per day achieved Bt2mn 2017 YTD target Bt900mn Average sales per day (Btmn) 92% 648 7% 1% % 7% YTD2018 TV Internet/Mobile Others Break even level Bt3mn per day 2018 Strategy To increase sale & awareness More revenue from airtime buying channels Others Cable Airtime Satellite 13% 8% 6% 7% 30% 39% 50% 47% 2017 YTD2018 More revenue from online platform More high margin product sales for target younger audience in E-commerce Fashion and cosmetic proportion +71% YoY 27% 34% 2017 YTD2018

15 2018 Guidance Consolidated Financial Statement Revenue from satellite and international businesses Mainly Contributed from Share of Profit of Associates Standalone Financial Statement General & Administrative Expenses Dividend Policy Venture Capital 2018 Guidance Slight decrease YoY 40.45% of AIS Net Profit 2018 Guidance Around Bt400mn Pass through Not more than Bt200mn

16 Q&A

17 Appendix

18 InVent Portfolio 2012 A leading digital publishing platform in Thailand and expanded its business to User Generated Content (UGC) under a joint venture with Tencent namely Ookbee U A manufacturer and distributor of eye-tracking communication device for paralyzed and disabled patients. This allows patients to communicate with physicians, nurses and relatives more conveniently and accurately A famous Thai mobile game studio developer in Thailand A well-known mobile game, called Thapster, developer in Thailand. A gamification platform for website and mobile applications service provider which is a new innovative for digital marketing to connect branding and consumers. A mobile application Golfdigg developer to make an online golfcourse reservation and online mobile payment.

19 InVent Portfolio 2016 A Thailand-based online food and lifestyle review portal that searches for restaurants and beauty with more than 6 million users a month and nearly 1 million accumulate reviews at the end of It also provides food delivery cooperating with LINEMAN. A developer of VR advertising or 360 degree video advertising under OmniVirt brand in the United States A developer and provider mobile point of sale (mpos) system to customers of financial institutions who want to use credit card payment system. A Thailand leading end-to-end event management platform with comprehensive technology oriented services from ticketing and onsite access control to in-event cashless payment solutions and CRM suites. An integrated e-commerce platform namely Shopback, allows online shoppers to take a portion of their cash back in e-wallet when they buy products through the service.

20 1Q18 Statements of Profit or Loss Consolidated Financial Statements Baht million 1Q17 4Q17 1Q18 %YoY %QoQ Revenues from sales and services 2,767 2,191 1,767 36% 19% Share of profit of investments in associates 3,107 3,166 3, % 3.2% Total revenues 6,046 5,470 6,755 12% 23% Cost of sales and service 1,634 1, % 37% SG&A 643 1, % 32% EBIT 3,503 (576) 4,899 40% n/a Net profit attributable to Company 3,119 1,754 3,640 17% 108% Normalized net profit* 3,119 2,852 3, % 11% *Normalized net profit excl. loss from impairment and profit from sale of CSL s share

21 1Q18 Statements of Profit or Loss Separate Financial Statements Baht million 1Q17 4Q17 1Q18 %YoY %QoQ Share of net results from investments in subsidiaries 99 (1,324) % n/a Share of profit of investments in associates 3,107 3,166 3, % 3.2% Other income % 23% Total revenues 3,215 1,855 3,723 16% 101% SG&A % 16% EBIT 3,117 1,753 3,637 17% 107% Net profit attributable to Company 3,116 1,753 3,637 17% 107%

22 1Q18 Statements of Financial Position Baht million Cash & cash equivalents and current investment Investments in subsidiaries and associates Investments in associates and joint ventures Consolidated Separate Dec-17 Mar-18 Dec-17 Mar-18 8,418 10,320 1,869 1, ,968 26,411 22,978 21, Property and equipment 7,943 7, Intangible assets under operating agreements 3,987 3, Other assets 7,634 10,207* 105 5,005* Total assets 50,960 53,627 29,942 33,175 Interest-bearing debt 7,335 7, Other liabilities 6,298 10,852* 142 4,780* Total liabilities 13,633 17, ,780 Total shareholders equity 37,327 35,665 29,800 28,395 Total liabilities & shareholders equity 50,960 53,627 29,942 33,175 *Including dividend receivable and payable

23 General Information of the Company Company Name Symbol INTOUCH General Information Intouch Holdings Public Company Limited INTUCH Year of Establishment 1983 Website Market Capitalization (as of 8 May 2018) 1-Year Average Trading Value (as of 8 May 2018) 177, million Baht (5,741 million USD at 31Baht/USD) million Baht (15 million USD at 31Baht/USD) American Depositary Receipt ADR Ticker Symbol Depositary INTHY The Bank of New York Mellon

24 Disclaimer Some statements made in this presentation are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as may, will, expect, anticipate, intend, estimate, continue plan or other similar words. The statements are based on our management s assumptions and beliefs in light of the information currently available to us. 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. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements.