True Corporation Plc.

Transcription

1 True Corporation Plc. At a Glance Aug 2014 Disclaimer: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.

2 True Group Thailand s convergence lifestyle leader 1 CP Group Public shareholders -Foreign 16.2% - Local 23.7% 60.1% 39.9% 100.0% 1/ 100.0% 2/ 100.0% 33.2% Mobile Group Pay TV Wireline/Online Wireline/online Telecom Infrastructure Fund mn subs 24.6% subscriber market share 4G LTE 2100 MHz 3G+ 850, 2100 MHz 2G 1800 MHz (temporary measure) International call services: 006 (TDM), (VoIP) Thailand s leading nationwide pay TV provider 2.3 mn subs Enhanced, secure HD broadcasting system with MPEG-4 & secure silicon Fixed-line operator with 1.7 mn subs in Greater Bangkok area Broadband leadership with 1.9 mn broadband Internet subs via FTTx, DOCSIS 3.0 and xdsl Over 100,000 WiFi hotspots 37% broadband subscriber market share Thailand s first and only Telecom infrastructure fund The leading and most diverse portfolio of telecom infrastructure assets - 11,845 Telecom towers* - 1,037,545 core-km of FOC system* -1.2 mn ports HFC network for cable TV and broadband services Note: 1/ Holds 100.0% in Real Future Co., Ltd. and indirectly holds 99.4% in True Move Co., Ltd. and 99.5% in Real Move Co., Ltd. 2/ Indirectly holds 100.0% in True Visions Group Co., Ltd. (which holds 99.3% in True Visions PLC and 99.0% in True Visions Cable PLC) 3/ Market share and subscriber figures are as at June 30, 2014 (source: Company) 4/ Estimated shareholding h figures are as at March 18, 2014 * Transfer of the AWC towers and a call option for TRUEGIF to buy the assets from BFKT when AWC Leasing Agreement/ HSPA Leasing Agreement expires

3 Key strategic milestones Transformation from a fixed-line concessionaire to a quad-play operator : Launched cable TV service under UTV; merged with IBC in 1998 to form UBC 2003: Launched broadband services 2007: Launched the first bundled package True Life Freeview which offered popular convergence package of TrueMove and TrueVisions 2011: Completed Hutch acquisition; First Thai operator to launch commercial 3G services, greatly reducing regulatory costs; launched DOCSIS 3.0 cable modem network 2013: Launched Thailand s first 4G LTE services; successfully launched Thailand s first Telecom infrastructure fund TRUEGIF ; acquired TV broadcasting service and network licenses 1991: Started fixed-line telephone service under a B-T-O concession with TOT (first 2 mn lines) 2002: TA Orange launched its cellular service under the Orange brand 2006: Completed UBC tender offer and rebranded as TrueVisions ; expanded pay TV services to mass market; introduced first public WiFi service 2009: First Thai operator to launch Apple s iphone 3G; offered 3G 850 MHz trial service 2012: Acquired the 2.1 GHz spectrum license; offered the fastest consumer broadband experience at 200 Mbps; activated the new broadcasting system (MPEG-4) 2014: Capital raising of Bt 65 bn via partnership with China Mobile and Rights Offering; acquired license for 2 digital terrestrial TV channels

4 Liberalized Telecom industry, a new chapter for True Group True Group marks a new era by securing licenses in all core segments and launching Telecom infrastructure fund TRUEGIF, paving way for the Group s sustainable growth 3 Ready to capture high growth potential in the liberalized Telecom industry Well positioned to benefit from rapid mobile and broadband network expansion Leverage on the Group s competitiveness in a level playing field industry Better returns on investment via improved cost and capital structure as well as economy of scale from TRUEGIF Extend the Group s businesses; mitigate regulatory risk post concession period

5 2014 Recapitalization and Strategic Partnership 4 Benefits from Recapitalization (Bt 65 bn) Enhancing capital structure and financial performance Synergies with China Mobile Procurement (i.e. handsets/ devices/ telecom equipment) Significant debt reduction Lower cost of debt Net debt to EBITDA ratio <= 2 times Improving credit profile International roaming alliance Best practices sharing Content& applications exchange

6 2Q14 Highlights 5 True Group reported solid YoY performance enhancement Successful convergence campaigns underpinned acquisition in all core businesses Cost control efforts across the Group progressed well TrueMove H s 3G/ 4G business, representing 79% of mobile subscribers, over achieved its breakeven point TrueOnline s broadband leadership sustained with net adds of over 72k during the quarter TrueVisions s subscription revenue picked up on attractive mass campaign

7 True Mobile shines in the postpaid segments 6 True Mobile Group continued its solid growth in the postpaid segments, mainly on rising non-voice usage Key strengths: TrueMove H s best 3G and 4G LTE services, attractive device-bundling packages, and innovative content and applications Thailand mobile postpaid market size* 12.2% 14.1% 14.6% 20.3% 23.6% 26.5% 25.3% 26.8% Bt bn Q13 2Q14 Postpaid market value Source: Company s estimate % TrueMobile's market share * Consisting of TrueMove, TrueMove H, Hutch (CDMA service was officially shut down in April 13), AIS and DTAC

8 TrueMove H dominates mobile Internet arena 7 True Mobile Group s subscriber base increased to 23.2 mn by 2Q14 3G/4G business yielded robust growth with 18.4 mn subscribers under both 850 MHz and 2.1 GHz spectrums TrueMobile s cumulative subscribers 18, , ,876 10,653 22,087 23,195 4,845 18,037 18,157 12, , ,223 3,865 1H13 18,350 1H14 TrueMove H TrueMove Hutch

9 leads the broadband market 8 Offered the most competitive ULTRA hi-speed Internet packages ( Mbps) with attractive value-added services DOCSIS 3.0 and FTTx technologies enabled TrueOnline to offer the fastest consumer download speed of 200 Mbps Standard speed for triple-play package was upgraded to 30 Mbps Superior service quality and greater network coverage which will cover over 5 mn homepasses nationwide by year end Conducted localized marketing activities to raise awareness of TrueOnline s brand and competitive offerings

10 DOCSIS 3.0 facilitates subscriber growth Broadband leadership with 1.9 mn subscribers by 2Q14 Solid net adds, driven by successful expansion to new territories, competitive convergence campaign and localized marketing activities DOCSIS 3.0 facilitated real triple-play offerings with the launch of better-valued convergence packages SukX3, combining broadband Internet, mobile s voice and data usage as well as pay TV services through the same cable network Broadband Subscribers & ARPU subscribers 1,570 1,810 1,680 1, , , , , ,026 1,175 1,335 1,570 1,570 Previous subs Net adds ARPU

11 penetrates into all market segments 10 A wide array of top international and local quality content Bt/sub/mo Exclusive partnership with world s leading content providers 000 subs 2,042 1,663 1,705 1,642 Thailand s highest HD offering of 50 channels Customized and convergence packages to capture growth in the untapped segments Partnership with leading satellite and cable TV operators Attractive value-added services (i.e. TrueVisions Anywhere) Subscribers & ARPU , ,274 2, Premium (Platinum and Gold) Freeview Free-to-air box Standard (Knowledge) Blended ARPU

12 Strategic Outlook True Group 11 Retain focus on superior quality of network and services Introduce more competitive convergence packages Continue cost control to improve bottom line Improve credit profile through deleveraging

13 2Q14 results

14 True Group s solid performance improvement on cost monitoring 52,605 52,649 Service revenue NIOGO 56,802 61,865 66,291 31,558 32, H13* 1H ,352 4,106 (518) (1,358) (3,200) (3,680) (5,399) (5,354) (4,571) (6,632) (10,093) (11,331) H13* 1H14 NIOGO excl. deferred income tax NIOGO 13 EBITDA 19,582 18,392 17,104 16,738 16,385 Free cash flow 62,496 24,231 23,337 24,606 28,800 9,602 8,538 8,180 9,460 4,155 1,786 (6,391) (2,946) (19,814) 5,764 (5,012) H13* 1H14 TrueMobile EBITDA EBITDA margin Cash flow from operations Capex * Excluding performance contributions from 8 non-core subsidiaries, which were sold in 4Q13, for a meaningful Y-on-Y comparison %FY10 %FY11 %FY12 %FY13 %YoY Service revenue +0.1% +7.9% +8.9% +7.2% +4.0% EBITDA -6.1% -7.0% -2.1% -2.1% +15.7%

15 TrueMobile s revenue and EBITDA surge YoY on 3G/4G solid growth Service revenue & market share 15.0% 14.1% 14.8% 15.4% 15.9% 15.3% 16.5% 23,575 23,284 27,249 31,184 35,211 16,975 18,449 NIOGO (559) (624) (1,314) (4,811) (4,228) (1,394) (1,411) (2,258) 258) (6,550) (4,726) (6,173) (7,308) (9,973) (10,999) 14 Service revenue % revenue market share EBITDA 7,226 6,233 4,974 4,852 4,910 5,011 2,902 Net IC (32) +181 (98) (1,182) (1,210) (82) (324) TrueMobile EBITDA EBITDA margin NIOGO excl. deferred income tax NIOGO Free cash flow 15,954 12,466 8,643 2,889 2,637 3,429 (2,131) 2,762 3,667 2,419 (2,736) (837) (3,918) (8,323) Cash flow from operations Capex %FY11 %FY12 %FY13 %YoY Service revenue +17.0% +14.4% +12.9% +8.7% EBITDA -20.2% -2.4% +1.2% +72.7%

16 Broadband Internet sustains strong growth Service revenue NIOGO 26,387 26,043 26,876 28,126 28,658 5,726 6,812 6,517 6,217 5,420 8,564 7,538 12,513 12,664 10,573 11,532 13,021 14,336 16,183 3,120 2,854 7,250 6,973 7,043 7,274 7,857 8, ,144 1, ,259 1,536 1, Convergence & others 1H13* 1H14 Broadband & other Internet services Traditional voice (fixed-line, payphone, PCT) EBITDA 9,804 9,751 9,973 10,089 10,243 4,464 4, H13* 1H14 (101) H13* 1H14 NIOGO excl. deferred income tax NIOGO 5,392 5,104 6,256 2,551 3,397 3,087 Free cash flow 9,011 8,695 22,728 11,212 5,128 4,589 3,596 (4,965) Cash flow from operations Capex 15 * Excluding performance contributions from 8 non-core subsidiaries, which were sold in 4Q13, for a meaningful Y-on-Y comparison %FY10 %FY11 %FY12 %FY13 %YoY Service revenue -1.3% +3.2% +4.7% +1.9% +1.2% EBITDA -0.5% +2.3% +1.2% +1.5% -7.7%

17 Performance softens on weak economy Service revenues 10,463 10,728 9,533 9,585 9, ,562 1,746 8,549 8,334 8,131 8,032 8,048 5, , ,255 3,684 Subscription & installation Others Advertising 2,622 2,322 2,236 EBITDA 1,966 1, , NIOGO (4) (197) (852) (1,081) (260) (538) (761) NIOGO excl. deferred income tax NIOGO Free cash flow 2,078 2,329 1,520 2,088 1, ,430 1, (112) (821) (1,622) Cash flow from operations Capex 16 %FY11 %FY12 %FY13 %YoY Service revenue +0.9% +8.2% +2.5% -9.4% EBITDA -3.7% -12.1% -25.8% -35.7%