Samart Corporation PCL. July 2009

Transcription

1 Samart Corporation PCL July 29 1

2 Background 195: Started as a radio repair shop in Saraburi Province,North of Bangkok 1985: Started large scale system integration projects 1992: Awarded first NMT cellular concession in the Kingdom of Cambodia 1993: SAMART was listed in Stock Exchange of Thailand : SAMTEL was listed in Stock Exchange of Thailand : Samart Enters Paging services & GSM 18 services. (Divested later in 2) Telekom Malaysia acquires 25% in Samart 21: Samart wins 32 yr concession to build, own & operate Air Traffic Management Services in Cambodia 23: Samart I-Mobile a handset and content distributor company was listed in Stock Exchange of Thailand 25: Samart was awarded Royal Garuda by H.M. The King of Thailand for its services to Thai Society 26: Samart enters utilities Sector. - Won 1 yr contract to supply 16 MWe to subsidiary of Siam Cement in Cambodia. - Won 1 yr waste management contract at Suvarnabhumi Airport Free Float 41% Shareholding Structure 19% Telekom Malaysia Vilailuck Group 4% Total Shares Outstanding: 976 mill 2

3 Business Structure Listed in mill shares Market cap = USD 18 mill 7% 59% ICT Solutions & Services Mobile multimedia 6 mill shares 4,3 mill shares (par Bt..1/share) Mkt cap = $ 145 mill Mkt cap = $ 21 mill TECH RELATED BUSINESS 1% SAMART Inter Holding 7% 1% 1% 6% Security solutions TV/Satellite antenna manuf Call Center Waste Mgt@ new airport 1% 1% Air Traffic Mgt As a holding company, we aim to invest in profitable technology related ventures, thus creating a investment portfolio generating above average returns for shareholders Power plant 23 MW 3

4 Revenue & NP Breakdown by Businesses H-9 Total Revenue 18,858 31,2 19,649 16,286 8,21 (in Baht million) Contribution by : SIM 69% 79% 78% 7% 52% SAMTEL 11% 9% 11% 18% 36% Other Biz 3% 12% 11% 12% 12% Increasing contribution from Samtel H-9 Total Profit 584 1, Contribution by : SIM 48% 14% 33% 25% 19% SAMTEL 27% 12% 13% 29% 44% Other Biz 25% % 54% 46% 37% Extra Gain* % 74% % % % Increasing contribution from Samtel * Disposal of assets 4

5 Samart Inter Holding (In kingdom of Cambodia) Flights Revenue ($ mill) - Monopoly Concession to manage Nationwide Air Tarffic till year 233 (concession is extendable with further investments) - Tariff collection from airlines (inbound & over flights) - THAI, Vietnam Airlines, British Airways, Qantas Bangkok Airways, Qatar Airlines, Singapore Airlines and Malaysian Airlines are top tier clients - High growth potential from air traffic movement (in and out of Cambodia) - CATS increased its tariff by 15% since July On a DCF basis, the NPV of CATS is USD 274 million - Samart is exploring ways to unlock its value in CATS (A) 25 (A) 26 (A) 27 (A) 28 Strategy: Explore similar investment opportunities in Indo-China region 5

6 Samart Inter Holding (In kingdom of Cambodia) - 16 MWe contracted capacity beginning 28 till Off taker is Kampot Cement (wholly owned by Siam Cement, Thailand) - USD 6 mill/year in revenue guaranteed per year - Fuel is supplied by off taker - In operation since Jan 8 - Potential capacity expansion by off-taker Strategy: Explore opportunities in utilities sector in Kingdom of Cambodia 6

7 Tech Related Business 1,6 call center representatives Winner of 2 awards in 27 Turnkey Outsourcing Strategy -Govt. Call Center FDA Call Center -BUG Bank, Insurance Cos Build a backlog of contracts from Govt & private sector clients Increase portion of outsourcing revenues to 7% from 5% at present Invest in training call agents to ensure highest quality 7

8 Samart i-mobile Public Company Limited 1993: Started as a handset & pager importer to complement Samart s GSM cellular & paging operations 1997: Received license to operate Audiotext services 22: Launched Multimedia Content services under brand name BUG 23: Listed in Stock Exchange of Thailand and raised Baht 1,21 mill (USD 3 mill) 24: Launched first house brand handset I-mobile VDO phone. Sold 1, units in six months 25: Expanded handset business to Malaysia, Cambodia. Attained 3 rd position (15% market share) in Thailand 26: Telekom Malaysia acquired 24.4% stake in SIM from Samart and opened up opportunities in newer markets such as Indonesia, Bangladesh & India I-mobile became second brand in Thailand with market share of 22%. A total of 2 mill hand sets were sold in domestic markets & 2.4 mill were sold in international markets 27: JV with Celcom and started retail operations in Malaysia. A total of 4 mill handsets were sold. Market share in Thailand =28% Shareholding Structure Free Float Telekom Malaysia Samart Corp Total Shares: 4,3 mill 8 28: Prime mister s award for Thai owned brand 8

9 Key Strengths - # 2 Brand in Thailand backed by Strong Product Innovation - Dec 24 First VDO phone in Thailand - Sept 25 First MP3 phone in Thailand - Mar 26 First TV phone in Thailand - Jun 26 First 8 mill pixel camera phone - Jan 27 First inbuilt FM antenna speaker phone - Jan 27 First phone with walkie-talkie function - 28 Dual SIM with standby function Motion sensor function - Regional Foot print 25 Foray into Malaysia Market (exclusive with Nokia for 3G handsets) Appointed dealers in Bangladesh, Lao, Cambodia 26 Started operations in Bangladesh, Indonesia, Vietnam & India - Market Leader in voice content market 8% of voice content market 9 9

10 Leveraging Strengths Theme: Devices, applications, services based on Mobility concept delivering enriched lifestyle experience to the end users Device Applications i-music Ringtone Full Song i-clip Wallpaper VDO Clip i-movie Movie Detail Show Time i-horo Gypsy Birthday Etc. i-sport Football, etc. Match/Result i-promotion Discount Rewards Privileges i-game Adventure,etc Multiplayer i-news Local International i-lotto Result Analysis i-food Hit Restaurant Search i-trip Hit Hotel Weather i-application Stock watch Biz info Total 24 i-mobile handset models to be launched in 29 Upgraded versions of applications thru i-link 1

11 Business Structure Samart i-mobile i PLC Mobile Business Distribute i-mobile and other branded mobile handsets through Traditional Trade: Key dealer, SMD, Franchise Modern Trade: i-mobile shop and hyper market Provide Voice & Non Voice information / content through multi service channels / devices Multimedia Business Provide easy to access to content through i-link service International Business Export Successful SIM Business Model Malaysia Indonesia Vietnam, Laos, Cambodia Bangladesh India M-East International wap.bug2mobile.com 11

12 Own Designed Products 75% of total handsets are designed in-house Product positioning PDA (Sense) 24 Off the shelf, Quick shipment High end (9 Series) 25/6 Co-design handset 3 moths shipment Unique features Mid end (6 Series) Low Mid end (5 Series) 27/8 Own design handset 4-5 moths shipment Customized features Low end (3 Series) Super low end (1&2) 12

13 Handset Road Map SENSE 6 HSDPA, Andriod, Analog TV, GPS,Touch, 3 MP, 3.5 HVGA, Instant FM, BT, Java, Google MSN, Push (TBC) SENSE 5 IM63 Analog TV, DualSIM, QWERTY, Dual SIM 1.3MP, 2.5 Landscape, QVGA Touch, 8 MP, 3. WQVGA, EDGE, Instant FM, BT, Java, TV, Java, EDGE, BT MSN, Push (TBC) MSN, Skype, Push (tbc) Sense SENSE 8 Trend Setter Series IM628 Slide Analog TV, DualSIMDual Talk 3MP, 2.4 QVGA, EDGE, BT, Java, Instant FM, MSN, Push (TBC) IM65 Touch Analog TV, DualSIM, Touch, 3MP, 3. WQVGA, EDGE Instant FM, BT, Java IM62 Analog TV, DualSIM, 3MP, 2.4 QVGA, EDGE Instant FM, BT, Java Camera Series T76 Dual SIM 8MP, Analog TV 2.4 QVGA, EDGE IM638CG GSM+CDMA Dual Talk 3MP, 2.4 QVGA Instant FM, BT IM 626 IM 627 Multimedia Series IM 522 Dual SIM, IM 523 IM QVGA, Instant FM, BT Music Series IM 319 IM 322 IM 32 Dual SIM, Slim 2.2 QVGA, BT, MP3, VGA Camera 2.2 TFT QVGA BT, VGA Camera Hitz Series IM 22 Y8 IM 535 Dual SIM, Angalog TV IM TFT QVGA Dual SIM, Analog TV BT, VGA Camera 2.4 QVGA, Instant FM, BT IM CSTN Torch IM55 Touch Analog TV, DualSIM, Touch, VGA Camera, 2.8 QVGA, EDGE Instant FM, BT, Java IM36 Analog TV, VGA 2.4 QVGA Instant FM, BT IM 222 DualSIM, CIF Camera 1.8 TFT, MP3, SMS IM 14C CDMA 8MHz, IM x128, FM CSTN, 1.44, 128x128, no FM Q1Y9 IM536 Analog TV, DualSIM, VGA, 2.4 QVGA Instant FM, BT IM 232CG GSM+CDMA, CIF Camera 2. TFT, MP3, FM IM16C ULC CDMA CSTN, x128, FM IM 2xx Dual SIM, CIF Camera 1.7 TFT, 128x16 MP3, FM Q2Y9 IM 2xx Dual SIM, CIF Camera 1.7 TFT, 176x22 MP3, FM

14 Handset Market Perspective Thai handset market forecast 27:29 Market share by brands: 28 Source: CNS Source: CNS The market to de driven by mid-low, low priced handsets ( Baht 4, and below) Mobile Penetration in Bangkok to reach 12% by end 28 14

15 Handset Sales & Margins Total Handsets Sales & Gross Margins Handset sales: Domestic vs Inter 5,, 4,5, 4,44, 4,23,253 4,38, % 16.% 14.% 5,, 4,5, 4,, 3,5, 3,, 11.97% 12.6% 12.% 1.% 4,, 3,5, 3,, 2,4, 1,167,761 1,258,13 International 2,5, 2,, 1,5, 1,, 6.75% 1,57,31 8.% 6.% 4.% 2,5, 2,, 1,5, 1,, 2,4, 2,855,492 2,78,11 Domestic 199,458 5, 2.% 5, 1,37, H-29.% H29 - Improving handset margins is due to higher margin phones (mostly the low-end) - Margin trend is likely to be sustained in the neighborhood of 1%-12% in 29 15

16 Growth Outlook: Handsets - Presently dominates 28% market share in Thailand, 15% in Malaysia & 5% in Indonesia - Increasing growth opportunities S-E Asia in low penetration countries such as Bangladesh, India, Indonesia & Vietnam - About 5% of existing handset sales are in overseas markets. Trend in Q1-29 is slower due to economic difficulties in the world - Set up key hub in Dubai for exports to African continent, one of the least penetrated region in the world 16

17 Distribution Channels: 29 A total of 613 (from 57 in 28) outlets in domestic market (including shops, franchisees, Kiosk, modern trade) A total of 17 (from 14 in 28) outlets in international market (including shops, franchisees, Kiosk, modern trade, etc.) 17

18 Content Business: Unique positioning Voice BUG19 Premium Phone Service XX Tariff: 6-9 bt/min BUG /7 live directory services Tariff: 7 bt/min Non-Voice BUG2Mobile ShowDed Community Blog i-sport App Solution Subscription based applications New Business EDT Horoscope Portal International Exporting application platform to the region 18

19 Content Business Model We bundle content in every single handset sold thru us, thus enabling higher content usage High margin business! (GM >33%) We are a neutral content provider (access by 5 mill mobile & 1 mill fixed line users) Act as an content aggregator (work with over 1+ content/media providers) Content is accessible by all fixed line and mobile subscribers - Revenue sharing with operators - up to 5% for voice revenue - up to 2% for non-voice contents 5% content is in-house, 5% outsourced Biggest in sport content provider in Thailand 19

20 Content Business: Business Model Accessing Voice Content via Fixed line Accessing Voice & Non-Voice Content via Fixed line move Operators keep 4% of revenue (as they do billing, etc.) for voice content Operators keep 5% of revenue for voice content & 2% of revenue for non-voice content In house Outsourced 5% of content is produced in-house and remaining 5% is outsourced or aggregated 2

21 Content Business: Voice Business Main Revenue Stream Bug 19 categories Horoscope Sport Information Voting & TVC Service 3% Sport 36% Information 11% Chat 7% Consultancy 1% Download 15% Entertainme t 4% Horoscope 1% Game 13% Main Revenue Stream Recurring Revenue fixed line operators Mobile operators TTT 2% Other 5% TRUE 23% Orange 14% Other 3% AIS+DPC 55% DTAC Directory Alert & Subscription TOT 52% 28% 21

22 1)Prepare for 3G Interactive Chat Develop more strategic partners (ietrue Move ) and find new revenue stream VDO Conference Launch sport SIM with all operators with privileges Change status of competitors to partners Interactive Game Rich content/streaming Turn existing customers to be more subscription base 22

23 Revenue/NP/Dividend history (all figures in baht million, except for dividend)) 3, Revenues Revenue breakdown by segment 25, 2, 15, 1, 5, 24,6 15,434 11,46 4, H-9 1% 8% 6% 4% 2% % ,3 3, ,86 8,857 6,753 2,882 8, H-9 Cont ent Mobile Solut ions International H/ S Domestic H/ S Net Profit Dividend & Payout Ratio H-9 Incl Baht 115 mill gain from disposal of BLISS/TTM % % 54% 55% % 16% 14% 12% 1% 8% 6% 4% 2% % 23

24 Balance-Sheet Review (all figures in baht million) 14, Consolidated 14, Company Only 12, 12, 1, 4,633 1, 4,958 8, 6, 4, 8 6,69 3,787 3, ,452 5,539 3,69 8 5,335 Current Liabilities Non-Current Liabilities Current Asset Non-current Asset 8, 6, 4, 14 5,224 3,59 3,542 3, Current Liabilities Non-Current Liabilities Current Asset Non-current Asset 2, 2, 4,491 4,62 4,53 1, H-9 2, H-9 Retained Earnings 1, H-9 24

25 Samart Telcoms: Existing Businesses Know how in VSAT network & applications: - Rural Telephony network in 4, villages - School net network in 1,6 schools (ongoing) - Soft switch installation for TOT - Satellite/High speed network for Govt. agencies - Broadcasting on Ku & C band (ongoing) No 1. in Satellite application market POS/EFT market: - Credit card readers, Payment gateway - Fleet solutions - Services to Banks, retailers No 1. in by market Share (terminals sold) Leading SI in ICT field: - New Bangkok International Airport - Government ministries and agencies ( MOI/MOJ/MOD) Top 3 SI in Thailand (Govt projects) 25

26 SAMTEL Business Structure Network Services System Integration E-Business IT Outsourcing Providing network services & applications Conventional/ IP Satellite Lease Line/DSL Networking Next Generation Network Broadcasting/ Business TV Video Conference,etc. Providing turnkey IT & security solutions for private / government sector Government (Ministry of Industry, Ministry of Justice, Ministry of Defense) State Enterprise Airport (NBIA) Providing specific business process application & services for business effectiveness Payment Solutions e Learning e Logistics Providing full operational services in specific industries (build and operate business) Business Solutions - Provincial Electricity Authority ERP projects ICT Maintenance services - NBIA - Other projects 7% of total revenue 2% of total revenue 6% of total revenue 4% of total revenue - Long-term projects min 5yrs tenure (monthly revenue) - Gross margins of over 25% - Turnkey projects - Budgetary allocation every year - Gross margins of over 18-2% - Largest e learning system in Thailand 5 universities - Automatic meter reading system for PEA - Installation & maintenance - Funded by project finance - Funded working capital 26

27 Revenue Breakdown: Govt. Clients Dominate Corporate 15% Corporate 13% Government 85% Government 87% IP Business 1% IT Outsourcing 3% E-Business 7% IT Outsourcing 16% System Integration 19% IP Business 12% Network Services 42% Network Services 7% E-Business 5% System Integration 27

28 Network Services Project concept Check budget availability Key Characteristics: -The entire process takes approximately 12 months - Flexibility to carry out closed bid - Recurring revenue (service income) stream - Lower risk as contracts are guaranteed by Government bodies - Upside potential by expanding service scope and or project tenure Presentation to entry level staff Project economics/ feasibility Ongoing & Completed projects: - Rural Telephony network in 4, villages (Baht 8,64 million) - School net network in 1,6 schools (Baht 2,58 million) - Soft switch installation for TOT (Baht 1, million) - Automatic Meter Reading for PEA (Baht 889 million) Approval from agency Rollout Potential projects: - Check inn system outsourcing at Suvarabhumi airport (Baht 5, million) 1 year contract - Village internet (Baht 2,5 million) - Softswitch (Baht 1, million per year) - Fiber optic/cable maintenance - 1,, broadband ports (Project value Bt 4 bn, won on 26 th March) 28

29 System Integration Project concept Inputs for TOR E Auction Contract Signing Implementation Final acceptance Key Characteristics: -The entire process takes approximately 12 months involving TOR till e auction - Typical project value the we bid is from Bt. 7 mill to Bt. 1, mill - Build & Transfer projects - Ability to get maintenance contracts - Yearly budget allocation from State agencies (the budget size is appox Baht 7 billion per year on IT/Networking) Potential projects: - Mostly from following ministries: - Ministry of Interior - Ministry of Defense - Ministry of Justice - Ministry of Labor - Supreme Commander HQ - Thai Mobile network installation (Baht 15, mill) - IP Core project (Baht 9 million) Signed in Feb 29 29

30 System Integration Key Project Highlights (Completed & Ongoing) Suvarnabhumi Airport Design & Installation of Airport Information Management System (AIMS) in Consortium with Siemens, ABB, & Satyam (Project Value Baht 2,399 mill) Ministry of Interior Information Super High Way Linking all provincial offices in Thailand (Baht 1, mill) Suvarnabhumi Airport Common User Terminal Equipment System (CUTE) (Project Value THB 1, mill) ITV Mobile TV Broadcasting Station Ministry of Defense Communication network System (Baht 799 mill) To be completed by 29 Department of Industrial Works Computer network systems for supporting services 3

31 IT Outsourcing Project design Budget allocation Key Characteristics: - Built, Own & Operate, or could be one time deployment - Project value range from Baht 35 million to Baht 4, million - Yearly budget allocation from State agencies (the budget size is appox Baht 7 billion per year on IT/Networking) E Auction Contract Signing Ongoing and Completed Projects: - Automatic meter reading (Baht 889 million) - ERP outsourcing for PEA (Baht 3,5 million, negotiations) - ERP outsourcing for MOL (Baht 3, million, negotiations) Implementation Potential Projects: - Automatic meter reading phase II (Baht 6 million) - Prepaid electricity meter (Baht 1, million) - ERP implementation CAT (Baht 35 million) 31

32 Revenue/NP/Dividend history (all figures in baht million, except for dividend)) 3,5 Revenues Revenue breakdown by segment 3, 2,88 2,9 2,963 1% 9% 63 2,5 2,177 8% 7% 1,554 1,186 1,156 2, 1,5 6% 5% 4% 2,349 Service Revenue Product Revenue 1, 3% 2% 1, ,71 5 1% % H H Net Profit Dividend & Payout Ratio % % 62% 6% H % 55% 55% % 56% 54% 52% 5% 32

33 Balance-Sheet Review (all figures in baht million) 1, Consolidated 7, Company Only 9, 8, 6, 7, 3,653 5, 2,37 6, 5, 4, 3, 2, 1, 45 1,71 2,14 1, ,36 1,973 1,869 2,334 1,41 1,336 1,222 1,71 Current Liabilities Non-Current Liabilities Current Asset Non-current Asset 4, 3, 2, 1, 1 1,182 1, , , ,72 2,58 2,116 2,1 Current Liabilities Non-Current Liabilities Current Asset Non-current Asset H H-9 Total assets & liabilities grew in tandem with business growth 4 Retained Earnings H-9 33

34 Samart Corporation PCL Consolidated Financial Performance 34

35 Consolidated Financials (all figures in baht million, except for dividend)) 35, 3, 25, 31,1 Revenues 1% 9% 8% Revenue breakdown by segment 267 2,98 1, ,713 2,117 2,835 2, 15, 1, 5, 19,649 16,286 8,21 7% 6% 5% 4% 3% 2% 24,337 15,434 11,119 2,957 4,162 Related Business ICT Solutions (Samtel) Mobile Multimedia (SIM) 1% H-9 % H-9 2,5 2, 1,99 Net Profit.45 Dividend Payout 74% 8% 1,5 1, H % 49% % % 6% 5% 4% 3% 2% 1% % 35

36 Balance-Sheet Review (all figures in baht million) 3, Consolidated 8, Company Only 25, 2, 15, 1, 7,197 1,996 9,489 6,38 7,132 1,742 1,465 8,295 8,81 8,658 1,127 1,267 Current Liabilities Non-Current Liabilities Current Asset Non-current Asset 7, 6, 5, 4, 3, 2, ,623 1, ,528 1, ,858 3,952 4,24 4,42 Current Liabilities Non-Current Liabilities Current Asset Non-current Asset 5, 4,774 4,821 4,464 4,245 1, H H-9 Retained Earnings 2,15 2,1 2,97 2,5 2, 1,95 1,913 1,941 1,948 1,9 1,85 1, H-9 36