Intouch Holdings Plc. THAILAND Corporate Day 18 September 2017 Kuala Lumpur

Transcription

1 Intouch Holdings Plc. THAILAND Corporate Day 18 September 2017 Kuala Lumpur

2 INTOUCH Investment Structure 1) 1) 1) 40.45% 41.14% 99.99% 99.99% 1) 1) 1) Advanced Wireless Network Co., Ltd % 1) Wireless Device Supply Co., Ltd % DTV Service Co., Ltd % 1) CS Loxinfo PLC 42.07% Shenington Investments Pte. Ltd. 51% Lao Telecommunications Co., Ltd 49% 1) 2) 51% 1) Listed Company on the Stock Exchange of Thailand 1

3 Lower profit contribution mainly from AIS pressured INTOUCH s financial performance Unit : Million Baht 7,484-63% YoY Lower sales and services revenue but higher recognition cost of TC-8 depreciation and related cost -20% YoY -1, ,990-16% YoY Higher 4G network investment, TOT payment, 900MHz license amortization, and bad debt from pre to post migration +5% YoY Mainly from lower loss contribution from HIGH 1H16 AIS THCOM INTOUCH & Others* 1H17 *Others = ITAS, ITV, VC, and Intouch Media 2

4 Maintain pass through dividend policy Maintain pass through dividend policy with dividend received from associated and subsidiaries after deducting holding operating expenses Announced dividend per share at Bt1.25 XD on 16 Aug 2017 and payment date on 5 Sep 17 THBmn Dividend received from AIS 4,222 Operating expense deduction at INTOUCH level 214 Dividend payment 4,008 Unit : Baht per Share Cost Method Dividend payout ratio = 98% Unit : Baht per Share Equity Method Dividend payout ratio = 67% H17 3

5 Expand revenue base to fixed broadband business Mobile Business Mobile revenue +4.6% YoY in 2Q17 Stronger postpaid segment in terms of both subscribers and ARPU driven by high value customer focus Service revenue posted an uptrend driven by both mobile and fixed broadband businesses growth Unit : Million Baht Fixed Broadband Business Revenue contribution continually increased to 2.3% in 2Q17 Subscriber stood at 446K with strong run rate Selective expand new coverage and uplift utilization Digital Service Continue collaboration with both international and local content partners Create special content for exclusivity Good respond on premium content subscription 32,500 32,000 31,500 31,000 30,500 30,000 29,500 29,000 28, % 5.8% 4.0% 2.2% -0.5% -1.0% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 FBB revenue Mobile revenue Service revenue growth YoY 4

6 Mobile: Growth driven by postpaid segment 4G handset penetration reached 39% Data user increased to 4.7GB/Sub/month ARPU improved to Bt251 from Bt244 Postpaid: Build 4G adoption Prepaid: Focus on segmentation Handset subsidies targeted to acquire and retain mid-to-high-end customer Entertainment Teenagers Roamers Super Play SIM ZEED SIM SIM2FLY 25% discount Bt 1,099 ARPU 12-mth contract 50% discount Bt 399 ARPU 12-mth contract Unlimited music Free 2GB AIS PLAY 12GB YouTube Free JOOX 5GB Super WiFi Popular outbound roamer SIM Bt399 for Asia 4GB for 8 days 5

7 MAX SPEED UNLIMITED Higher level of monthly commitment and data given Buffet NET ientertain NON-STOP Mobile price plans: Target better ARPU and build differentiation on postpaid * Attract new data users and encourage higher ARPU subscription through premium VDO contents e.g. AIS Premier and HOOQ *applications Monthly Fee (Bt) 4G/3G Unlimited max speed at Call within AIS (mins) kbps mbps mbps 200 Enjoy Free 1 month 1 month Offer unlimited data usage at different speed for diverse needs e.g. chat, social networks, music, HD video streaming Encourage customer to move from prepaid to postpaid subscription with worry-free plan 600 6mbps months Serve high-end heavy data users with real unlimited max speed experience 6

8 FBB: The new revenue stream AIS Fibre subscribers (sub) Aim to be a key player in the next 3 years Cover 5.2mn home passes in 28 provinces 301, , ,900 Segmented & Bundling packages value added 195, ,000 74,000 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 HomeBROADBAND - pure broadband connection HomePLUS broadband + free contents with AIS PLAYBOX and free HOOQ for 12 months HomePREMIUM broadband + premium contents + more upload speed Continue increasing fixed broadband subscriber base to 446K in area of 28 key cities with ARPU increased to Bt600. Revenue of fixed broadband accounted for 2.3% of service revenue. Achieved utilization rate of 40%, closer to FY2017 target of 55%. ARPU acceleration encourage high-end packages Encourage brand stickiness special offer discount, digital services providing, developed mobile money applications (my AIS, mpay), 7

9 broadband + contents + mobile Broadband + contents Pure broadband FBB price plan: Added value through bundling packages Monthly Fee (Bt) FBB mbps (DL/UL) Entertainment MOBILE Unlimited speed at /10 NA 1Mbps /20 4Mbps 1, /40 1, /50 3 months 12 months 12 months 12 months 6Mbps Special discounts to AIS Customers and AIS Serenade Leverage synergy of the three core businesses (FMC) to acquire new subscribers while create stickiness and differentiation. 8

10 1H17 Key challenges and Highlights Key Challenges NBN early termination TOT s TC-4 contract ended TC-9 satellite project delayed Key Highlights Conventional Satellites TC-6 Kenya s Intersat signed Number of satellite TV increased Broadband Satellite Axiata contract signed NBN resale subscribers reached 4,500 Maritime mobility platform 2 nd screen applications 9

11 THAICOM Satellite Fleet De-orbited In-orbited THAICOM 1A THAICOM 2 THAICOM 3 THAICOM 4 De-orbited: De-orbited: De-orbited: (IPSTAR) THAICOM 5 THAICOM 6 THAICOM 7 THAICOM 8 Scheme Operating Concession License Type of Satellite Broadband Conventional Conventional Fee 20.5% (Sep 2016 = 22.5% onwards) 5.25% (Jun 2017 = 4% onwards) Contract Life (Yr) 30 yr (2021) 20 yr (2032) Useful Life (Yr)

12 To expand and strengthen its market position in potential areas 50.5E 78.5E 119.5E 120E TC5 (C,Ku) TC6 (C,Ku) TC8 (Ku) TC4 (Ku) TC7 (C) Conventional: Increase bandwidth utilization on TC-6 Africa beam Conventional: Successfully acquire customers in GMS region and continue to grow in this area as well as South Asia markets Broadband: Secure bulk bandwidth sales in Thailand (to replace TOT) and Philippines Broadband: Focus on retail market to provide service through subsidiaries in Australia and New Zealand 11

13 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Improve awareness into other platforms 1H17 Performance Successful TV airtime buying strategy (broadcast program on non HighShopping Channels) starting in Jan 17 with 25% contribution of total revenue from TV Revenue contribution from non TV platform increased to 6% from 1% in % number of order growth in 1H Monthly revenue per day (Btmn) Strategy Improve revenue by increasing eye balls and awareness: on other TV Channels, e- commerce platform, and social media Increase number of new products and services Develop marketing Synergy with AIS to strategy and customer expand customer retention program base 12

14 Meditech Assistive technology for paralysis patients 2013 Continue support and promote high potential startup companies Infinity Levels Studio Mobile games 2014 Sinoze Mobile music game Playbasis Digital gamification platform Golfdigg Golf course booking platform and other golf-related services 2016 Wongnai Thailand s No.1 food and lifestyle review portal 2016 Social Nation Advertising technology development 2017 Digio Mobile pointof-sale (mpos) technology in Thailand 2012 Ookbee Digital publication platform and e- booking 13

15 2017 Guidance Consolidated Financial Statement Mainly Contributed from Share of Profit of Associates Revenue from sales and rendering of services 2017 Guidance 40.45% of AIS results Low-teen percentage decline YoY Standalone Financial Statement 2017 Guidance General & Administrative Expenses Same level as 2016 Dividend Policy Pass through Venture Capital (InVent Project) Bt200mn 14

16 Appendix 15

17 INTOUCH 2Q17 & 1H17 Statements of Profit or Loss Consolidated Financial Statements Baht million 2Q16 1Q17 2Q17 %YoY %QoQ 1H16 1H17 %YoY Revenues from sales and services Share of profit of investments in associates 2,933 2,767 2,319 21% 16% 6,174 5,087 18% 3,891 3,107 2,885 26% 7.0% 7,149 5,991 16% Total revenues 6,929 6,046 5,530 20% 9.0% 13,653 11,578 15% Cost of sales and service 1,502 1,634 1, % 6.0% 3,052 3, % SG&A % 17% 1,259 1, % EBIT 8,489 3,503 3,211 62% 8.0% 12,675 6,715 47% Net profit attributable to Company 7,717 3,119 2,871 63% 8.0% 11,174 5,990 46% 16

18 INTOUCH 2Q17 & 1H17 Statements of Profit or Loss Separate Financial Statements Baht million 2Q16 1Q17 2Q17 %YoY %QoQ 1H16 1H17 %YoY Share of net results from investments in subsidiaries Share of profit of investments in associates % 24% % 3,891 3,107 2,885 26% 7.0% 7,149 5,991 16% Other income % 11% % Total revenues 4,142 3,216 2,971 28% 8.0% 7,676 6,186 19% SG&A % 4.0% % EBIT 4,026 3,118 2,869 29% 8.0% 7,479 5,987 20% Net profit attributable to Company 4,025 3,118 2,869 29% 8.0% 7,478 5,985 20% 17

19 INTOUCH 1H17 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-16 Jun-17 Dec-16 Jun-17 9,160 9,831 1,751 1, ,340 27,010 19,897 20, Property and equipment 9,441 9, Intangible assets under operating agreements 9,205 8, Other assets 6,904 6, Total assets 54,607 54,221 28,189 28,930 Interest-bearing debt 10,168 9, Other liabilities 6,764 6, Total liabilities 16,932 15, Total shareholders equity 37,675 38,215 28,053 28,826 Net profit attributable to Company 54,607 54,211 28,189 28,930 18

20 AIS 2Q17 & 1H17 Key Financial Highlights Baht million 2Q16 1Q17 2Q17 % YoY % QoQ 1H16 1H17 % YoY Service revenue ex. IC 30,169 31,364 32, % 2.5% 60,317 63, % Sales revenue 4,882 6,407 5,858 20% 8.6% 10,545 12,265 16% Total revenue ex. Construction 36,482 38,858 39, % 0.6% 73,735 77, % Cost of service ex. IC 11,309 15,203 15,512 37% 2.0% 24,002 30,715 28% FY17 Guidance +4-5% Increase Total SG&A 6,460 5,439 6, % 23% 14,555 12,140 17% EBITDA 17,012 17,347 17, % 1.4% 30,427 34,455 13% Consolidated EBITDA margin 46.6% 44.6% 43.8% 2.8% 0.8% 41.3% 44.2% 2.9% 42-44% Sales margin 2.3% -6.7% -2.7% 5.0% 4.0% 0.9% -4.8% 5.7% Near zero margin Capex 11,693 11,509 11, % 1.5% 23,795 22, % Bt40-45bn 19

21 THCOM 2Q17&1H17 Key Financial Highlights Baht million 2Q16 1Q17 2Q17 %YoY %QoQ 1H16 1H17 %YoY Sales & Service revenues 2,902 2,731 2,286 21% 16% 6,112 5,017 18% Satellite and related services 2,131 1,956 1,555 27% 21% 4,525 3,510 22% Cost of sales and services 1,734 1,870 1, % 6.0% 3,528 3, % EBITDA 1,394 1, % 20% 2,897 1,941 33% Net profit attributable to Thaicom % 17% 1, % Normalized net profit % 17% 1, % EBITDA margin 48.0% 39.5% 37.8% 10% 1.7% 47.4% 38.7% 8.7% 20

22 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 11 Aug 17) 1-Year Average Trading Volume (as of 11 Aug 17) 175, million Baht (5,016 million USD at 35Baht/USD) million Baht (15.6 million USD at 35Baht/USD) American Depositary Receipt ADR Ticker Symbol Depositary INTHY The Bank of New York Mellon

23 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. 22