SAMART GROUP. July SAMART Corporation Plc. (SAMART) Our key strengths. Well-diversified investment portfolio. High caliber management team

Transcription

1 SAMART GROUP July 214 SAMART Corporation Plc. (SAMART) Our key strengths 1 2 Well-diversified investment portfolio High caliber management team 6 Compelling financial returns for investors + 5% div. payout policy 3 Solid relationships with key clients and suppliers + Strong track record 5 In the growth stage of; Smartphone boom New digital TV broadcasting Utilities and Transportation business Etc. 4 Robust growth in recurring revenues 1

2 SAMART Corporation Plc. (SAMART) At A Glance Today 195 Started as a radio repair shop in Saraburi province, North of Bangkok Manufacture of TV & satellite antenna. Provide system integration services. Started handset & pager business. SAMART was listed in SET. SAMTEL was listed in SET Entered Paging & GSM18 services (divested later in 2) Started call center business. Awarded 32 yrs. concession to operate air traffic service in Cambodia. SIM was listed in SET. Launched i-mobile brand to the market. Being bestowed the Royal Garuda by H.M. The King. Entered security solution business. 26 Awarded 1 yrs. contract to supply 16 MWe to subsidiary of Siam Cement Group in Cambodia. Won 1 yrs. waste management contract at BKK airport Received Type III operator license, to operate the cellular service without having our own network (MVNO). Awarded the Baht 16 billion total contract value to install TOT s 3G cellular network. Acquired Portal Net Company. Group profit exceeds a billion Baht. Turnaround of i-mobile handset business. Acquired TEDA to expand Utilities and Transportation Business. OTO was listed in MAI. 2 SAMART Corporation Plc. (SAMART) Current Business Structure LISTED Listed in ,7 mill shares (par THB 1/share) Market cap = Approx. THB 2.73 Billion Free float = 55.51% LISTED 7% LISTED 51% LISTED 7% NON-LISTED BUSINESSES ICT Solutions & Services Mobile Multimedia Call center Related Services Utilities & Transportations Listed in mill shares (par THB 1/share) Market cap = THB 9.33 Billion Free float = 28.3% Listed in 23 4,4 mill shares (par THB.1/share) Market cap = THB Billion Free float = 25.47% Listed in May mill shares (par THB 1/share) Market cap = THB 1.97 Billion 7% 7% Security solutions 1% Air Traffic Mgt 1% TV/Satellite antenna manufacturer 1% Power plant 23 MW 9% Waste new airport 1% Utilities & Transportations 8% TEDA CO.,LTD. Remark: Market cap based on price of stocks as of 27 th June 214 3

3 SAMART Corporation Plc. (SAMART) Variety of clients in our portfolio LISTED LISTED 7% LISTED 51% LISTED 7% Related Business ICT Solutions & Services Private Clients Mobile Multimedia Call center Utility & Transportation Utility Related Services Vision KPP Etc. TEDA State Enterprise Clients Etc. Transportation Samart Engineering Etc. CATS Etc. U-Trans SAMART Corporation Plc. (SAMART) Shareholding Structure and Trading Summary Shareholding Structure SAMART Trading Summary Total Number of Shares 1,6,53,91 shares Current Share Price THB 2.6 Local Institutions, 3% Foreign Institutions, 1% Par Value THB 1. Current PER 13.66x Vilailuck Family, 45% Others, 25% Market / Industry SET / Technology Sector PER 23.14x Sector ICT Avg. Daily Trading Value (211) THB 99 Million Member of Index FTSE SET Mid Cap Index SET1 Index SET3 High Dividend Index Current Market Cap THB 2.73billion (USD 648 million) Note: Data as of June 27 th 214 5

4 SAMART Corporation Plc. (SAMART) Group Revenue & NP Breakdown by Businesses Revenues Contribution 28A 29A 21A 211A 212A 213A 1Q/214 Total Revenues 16,286 17,35 16,266 19,964 17,1 22,434 6,364 Contributed by: 7% 52% 5% 34% 41% 46% 51% 18% 36% 35% 5% 45% 42% 33% Non-listed Businesses 12% 12% 15% 16% 14% 12% 16% Profit Contribution 28A 29A 21A 211A 212A 213A 1Q/214 Total Profit ,71 1, Contributed by: 26% 15% 13% 6% 9% 33% 29% 3% 47% 46% 66% 53% 38% 37% Non-listed Businesses 44% 38% 41% 28% 38% 29% 34% 6 Mobile Multimedia 7 7

5 SAMART i-mobile Plc. (SIM) Shareholding Structure and Trading Summary Shareholding Structure SAMART Trading Summary Total Number of Shares 4,4,25, shares Current Share Price THB 3.6 Axiata, 24% Par Value THB.1 Current PER 16.3x SAMART Corp., 51% Others, 25% Market / Industry SET / Technology Sector PER 23.14x Sector ICT Avg. Daily Trading Value (211) THB 1.35 Million Member of Index - Current Market Cap THB 13.46billion (USD 421 million) Note: Data as of June 27 th SAMART i-mobile Plc. (SIM) Business Structure Handset Business Content Business MVNO Business Business Design and manufacture of our ownedbrand i-mobile handset which distributed countrywide through our strong distribution network. One of the leading content aggregators in Thailand. Our products and services include lifestyle information (directory), sport, horoscope and game etc. available across channels A new cellular service provider under brand i-mobile 3GX. Our cellular service runs on TOT s 21 network under 12-yr MVNO agreement with TOT. Market Position Market share ranked # 2 (in term of number of handsets) Over 4 million unit sold per year Leader in lifestyle, sport and horoscope contents in Thailand The 4th Service Provider (currently) Strengthen in superior data usage speed Revenues Contribution 92% of 1Q/214 Revenues 6% of 1Q/214 Revenues 2% of 1Q/214 Revenues Key Strengths No. 1 local mobile handset brand Strong distribution network (>1, point of sales throughout Thailand) Value-to-money Service center nationwide Varieties of content Available through various medias Mobile-related services available across all cellular service providers Superior data speed downloaded Most competitive service package Bundle with various i-mobile contents Have no network related costs * MVNO = Mobile Virtual Network Operator = Mobile operator that does not own its own spectrum and network infrastructure. 9

6 SAMART i-mobile Plc. (SIM) Handset Business HANDSET CONTENT MVNO 1 SAMART i-mobile Plc. (SIM) Handset Business: Market Scan Feature + Smart Phone 1Q 213 VS 1Q 214 Feature + Smart Phone Only Smart Phone Th. Units Th. Units 4, , , , % %

7 SAMART i-mobile Plc. (SIM) Handset Business: Market Scan Feature + Smart Phone Rising popularity of Smart Phone sales in Thailand 12 SAMART i-mobile Plc. (SIM) Handset Business: Market Scan Smart Phone Over 7% of Smart Phone sales were priced below 1, Baht Y212 Y % Sales Th. Units 13

8 SAMART i-mobile Plc. (SIM) Handset Business: Our key strengths High Quality of Components Country s Largest Service Center Network Camera Chip Set Screen Service Center Value to Money (Price below 1K Baht) 1, 6,xxx-9,xxx Service HUBS 5 Central Area - SW Park - BKK-Nonthaburi Northern Area - Chiengmai North-Eastern Area 1 - Ubonratchathani North-Eastern Area 2 - Khonkaen + New HUB : Phitsanulok by Q3 Southern Area Hat-Yai 8, 6, 4, 2, 3,xxx-5,xxx Below 1,xxx Featured Phone i-style IQ Price Range Service Centers 72 BKK & Vicinity - 12 Central Area 15 Northern Area 13 North-Eastern Area 22 Southern Area 1 Drop-Off Points 89 BKK & Vicinity - 1 Central Area 17 Northern Area 23 North-Eastern Area 2 Southern Area SAMART i-mobile Plc. (SIM) Handset Business: Our key strengths Strong i-mobile Mobile Brand Recognition Partner with ADVANC (AIS) Launched package between i-mobile handset & AIS Nationwide Distribution Channel More than 1, points of sales throughout Thailand i-mobile shop Modern Trade Specialty Stores Dealers 15

9 SAMART i-mobile Plc. (SIM) Handset Business: Product Highlights in 1H/ 214 IQ 5.8 DTV Android OS 4.2 5'' QHD IPS Quad-core 1.2 GHZ Front 5MP AF Back 8MP AF (Flash) DVB-T2 IQ X Octo 5. FHD 8-Core 1.7 GHz Front Cam 8 MP Back Cam 18 MP Android 4.2 IQ X OKU 5. HD 8-Core 2. GHz Front Cam 8 MP Back Cam 22 MP i-tab DTV IQ X KEN IQ X Ocho 7 WSVGA Dual core 1.5 GHz Front 2MP FF Back 5MP FF DVB-T2 5. FHD Super bright 4-Core 2.2 GHz Front Cam 1.2 MP Back Cam 13 MP Water Proof 5. FHD 8-Core 1.7 GHz Front Cam 8 MP Back Cam 18 MP Android SAMART i-mobile Plc. (SIM) Handset Business: Product Highlights in 1H/ 214 Octa-Core CPU Smartphone 8-Core 1.7 GHz 5 FHD ROM 32 GB (13) 18 MP Main Cam (5) 8 MP Front Cam RAM 2 GB 8-Core 2. GHz 5 FHD ROM 32 GB 17

10 SAMART i-mobile Plc. (SIM) Handset Business: Product Highlights in 1H/ 214 Waterproof Smart Phone + KEN 4-Core 2.2 GHz 5 FHD ROM 32 GB/RAM 2GB 13 MP Main Cam 1.2 MP Front Cam Smart Sonic Receiver 18 SAMART i-mobile Plc. (SIM) Handset Business: Product Highlights in 1H/ 214 Digital TV Handset + Tablet

11 SAMART i-mobile Plc. (SIM) Handset Business: i-mobile Handset Sales i-mobile Handset Sales in 212, 213 & 1Q214 Estimated i-mobile i Handset Sales 1,29,324 1,87,45 1,7, , ,564 1,15, ,12 1,6,323 1,77,18 Baht Units 2,888 2,937 1,2, 3, 2,641 1,64,981 2,515 1,27,486 2,413 1,, 2, ,914 2, 8, 73,482 1,53 615,27 631,33 1,231 6, 1,193 56,294 1, 512, , ,29 381, ,81 4, 47, ,536 34,352 2, 172,422 Units 4,79,444 3,786,418 4,, 4,2, 4,5, 4,, 2,95 2,9 3,542,48 2,616 3,5, 3,24, 3,, 2,8, 2,5, 2,53,6 1,55 2,, 1,733,358 1,5, 1,2, 1,176, 1,, 537,36 5, Baht 3,5 2,5 1,5 5 1,838 22,424 1Q212 2Q212 3Q212 4Q212 1Q213 2Q213 3Q213 4Q213 1Q214E -1, Feature Phone Smart Phone Blended Average Selling Price Feature Phone Estimated Feature Phone Average Selling Price Smart Phone Estimated Smart Phone 2 SAMART i-mobile Plc. (SIM) Handset Business: i-mobile Handset Sales i-mobile Unit Sold in each categories 354,963 21, ,4 364, , , ,63 291, ,775 39, , ,242 33,11 254, ,132 Units Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14 i-note i-style IQ Featured Phone 21

12 SAMART i-mobile Plc. (SIM) Handset Business: i-mobile Handset Sales i-mobile Average Selling Price in each categories Baht 5,284 5,52 5,752 5,976 6,15 6,24 6,96 5,918 5,814 5,718 5,632 5,449 5,84 5,675 5,571 IQ Series 3,928 2,98 2,44 4,152 3,746 2,825 4,54 3,822 2,398 4,45 3,43 2,262 4,6 3,991 2,934 3,328 3,228 2,282 3,865 3,17 2,954 3,499 2,982 2,368 3,693 3,614 2,753 3,95 3,83 2,526 3,246 3,382 3,3 2,616 2,835 2,563 3,22 2,714 2,648 3,36 3,165 2,7 i-note 3,52 2,969 Blended ASP 2,452 i-style 1, , , Feature Phone Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'13 Feb'13 Mar'13 i-note i-style IQ Feature Phone Blended ASP 22 SAMART i-mobile Plc. (SIM) Handset Business: 2H/ 214 Strategy Export i-mobile DTV smart phone to oversea markets 23

13 SAMART i-mobile Plc. (SIM) Handset Business: 2H/ 214 Strategy New Opportunity: DVB-T2 Worldwide 35 countries have adopted & deployed DVB-T2 System Asia (7 + 1) Azerbaijan, Brunei Darussalam, Malaysia, Myanmar, Singapore, Vietnam, Kazakhstan + Thailand Africa (6) Ghana, Kenya, Nigeria, Uganda, Namibia, Mauritius, Middle East (2) Saudi Arabia, Qatar Ocean Pacific (1) New Zealand, Europe (19) Ukraine, United Kingdom, Belarus, Turkey, Switzerland, Spain, Slovenia, Russia, Poland, Italy, Greece, Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany 24 SAMART i-mobile Plc. (SIM) Content Business HANDSET CONTENT MVNO 25

14 SAMART i-mobile Plc. (SIM) Content Business: One of the leader content aggregators in Thailand HORO + SPORT + ENTERTAINMENT+ EDT (Eat / Drink / Travel) 26 SAMART i-mobile Plc. (SIM) Content Business: One of the leader content aggregators in Thailand Web Content Aggregator Mobile Application Content Owner Publishing Channel Media TV 27

15 SAMART i-mobile Plc. (SIM) Content Business: Example of our Content No.1 Website EDTguide.com Horoworld.com 28 SAMART i-mobile Plc. (SIM) Content Business: Example of our Content Web Guidebook Mobile App 29

16 SAMART i-mobile Plc. (SIM) Content Business: Example of our Content Free Copy 3 SAMART i-mobile Plc. (SIM) Content Business: Example of our Content EDT Privilege Management 31 31

17 SAMART i-mobile Plc. (SIM) Content Business: Example of our Content The launch of Digital TV has opened the new era of opportunities to the content market 32 SAMART i-mobile Plc. (SIM) Content Business: Example of our Content Lifestyle Sim Card 33

18 SAMART i-mobile Plc. (SIM) Content Business: Revenue breakdown Content Revenue Breakdown Content Revenue (MB) , Horoscope 38.7% 42.6% 32.7% 27.3% 33.7% 32.6% Information (Travel, Lotto, News) 21.2% 21.4% 17.7% 23.7% 26.9% 3.7% Sport 22.1% 17.8% 22.1% 31.8% 21.2% 16.1% Game 8.3% 5.5% 8.7% 7.1% 5.4% 4.7% Other (DL, Vote) 9.7% 12.8% 18.7% 1.2% 12.8% 15.9% 1.% 1.% 1.% 1.% 1.% 1.% 34 SAMART i-mobile Plc. (SIM) MVNO Business HANDSET CONTENT MVNO 35

19 SAMART i-mobile Plc. (SIM) MVNO Business: The new source of recurring revenues MVNO ( Mobile Virtual Network Operator) = Provide cellular service without having our own network 4% Capacity Provided Services Share 46% of Service Fee Service Fee Customers / Reseller State-owned enterprise Owner of 2.1/ 2.3 GHz Investment in network installation & maintenance Strategic MVNO Acquire subscribers Marketing & Advertising CRM Service License Obtained License Type 1 (MVNO) from NBTC since 29 which allows the company to provide the cellular service without having their own network. New MVNO Contract Obtained a renewed MVNO contract with TOT which last long until 225 Being a strategic partner obtains at least 4% of the TOT total network s capacity Able to resell the capacity to other players in the market under the MVNO service platform 36 SAMART i-mobile Plc. (SIM) MVNO Business: Key Strategies Key Strategies 1. Acquisition 2. Distribution 3. Retention 1.1 Bundled with i-mobile 1.2 Segment SIM 2.1 Direct sales 2.2 Sales retail store 3.1 ARPU Generation 3.2 Customer retention 1.3 Partnership program 2.3 3GX Kiosk 3.3 BUG Synergy Target: 1.5 million active subscribers by 214 Number of Subscribers > 2,5, 1,5, 4, 37

20 SAMART i-mobile Plc. (SIM) MVNO Business: Business Direction Focus on Bundling Model with i-mobile Smart Phone Q1 Y14 9 Models / 545 k units IQ 1.2 IQ 5.7 IQ k 1 k 5 k Q2 - Q4 Y Million Units IQ k IQ X OCTO IQ X OKU 15 k 1 k IQ X OCHO IQ X KEN i-tab Fun Total Y14 ~ 2 Million Units 7 k 1 k 4 k 38 SAMART i-mobile Plc. (SIM) MVNO Business: Active Subscribers Active Subs & Top up Performance for 213 Subscribers 7, 798, , ,639 6, 671,95 68,613 59,37 589, ,21 477,693 5, 552,76 434, , ,98 394,524 4, 467, ,95 349,563 45, ,33 431, , ,64 345,943 3, 286, , ,73 267, ,82 246,52 198,796 2, 164, , , , , ,61 17, , ,517 1, 88,67 143, ,548 67,384 85,743 95,72 21,223 21,956 22,737 21,97 21,15 2,979 2,646 21,145 2,449 2,248 19,821 19,621 17,928 16,598 16,399 Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14 Total subs Total post-paid subs Average daily top up (Baht) Baht 8, 7, 6, 5, 4, 3, 2, 1, 39

21 SAMART i-mobile Plc. (SIM) Financial Highlights Profitability Revenue Breakdown by Segment 16, 4% 16, 15,434 9.% 12, 14, 12, 1, 8, 11,398 9,39 8,128 7,2 7,42 7.8% 1,3 6.1% 8.% 7.% 6.% 5.% 4.% 8, 4, 96% 7% 93% 9% 91% 11% 2% 14% 89% 84% 1% 15% 84% Handset Content MVNO 2% 9% 89% 6, 3.% Dividend Payout 4, 2, 3, % 2.1% 1.7% 1.3% 1.2% % Q214 Revenue Profit NPM 2.% 1.%.% Baht % 83% 75% 65% 65% 51% 59% % 16% 12% 8% 4% % * 1H 213: interim dividend 4 SAMART i-mobile Plc. (SIM) Capital Management Capital Structure Gearing Ratio (D/E) Times (x) 3,116 2,481 2,845 2,42 2,43 2,592 2,29 2,364 2,387 2,182 2,352 1,814 3,188 2,373 3,418 2, Q Q214 Cash Interest-bearing Debts Equity Interest-bearing Debts Composition Interest Coverage Ratio Times (x) ,182 1% 3,116 2,845.9%.2% 99.1% 99.8% 2,352 2,387.4%.7% 99.6% 99.3% 1,814.8% 99.2% 2,373.5% 99.5% 2,653.6% 99.6% Q214 Short-term loan Long-term loan Q214 41

22 ICT Solutions 42 SAMART Telcoms Plc. (SAMTEL) Shareholding Structure and Trading Summary Shareholding Structure SAMART Trading Summary Total Number of Shares 618,, shares Current Share Price THB 15.1 Local Institutions, 13% Par Value THB 1. Current PER 11.58x SAMART Corp, 7% Others, 17% Market / Industry SET / Technology Sector PER 23.14x Sector ICT* Avg. Daily Trading Value (211) THB 41 Million Member of Index MSCI Small Cap Index SET1 Index SET3 High Dividend Index Current Market Cap THB 9.33 billion (USD 292 million) *ICT = Information Communications and Technology Note: Data as of June 27 th

23 SAMART Telcoms Plc. (SAMTEL) We are the country s largest IT contractor Install and Maintenance IT System for every organization Set up trunked radio network for CAT and Department of Provincial Administration Largest IT Contractor in Thailand Install 3G Network for TOT Install, Operate and Maintenance check-in Suvarnabhumi Airport Install CCTV for Bangkok Metropolitan Administration The largest ERP system provider in Thailand 44 SAMART Telcoms Plc. (SAMTEL) We provides the full ranges of IT services & products Matching customers needs with products, include designing customized solution, and linking different subsystem together into a whole Supplier *Key Suppliers Client *Key Clients Public Sector State-Owned Enterprise Private Sector Bangkok Metropolitan Administration (BMA) Airport of Thailand Pcl. (AOT) Telephone of Thailand (TOT) Central Retail Corporation Limited Department of Land (DOL) Provincial Electricity Authority (PEA) PTT Public Company Limited (PTT) Bangkok Bank Public Company Limited (BBL) 45

24 SAMART Telcoms Plc. (SAMTEL) Project Categorized by Revenue Types of Revenue Project Based Revenue (Turnkey) Sales of equipment including designation and installation Length of time normally less than 2 yrs Cash inflow depends on percentage of completion (Unequal cash inflow in each period) Service Revenue (Recurring Revenue) Provide fully services (Design, Installation, Operation and Maintenance) Length of time normally more than 2 years A constant cash inflow every month Period 1 Period 2 Period 3 Period 4 Period N Period 1 Period 2 Period 3 Period 4 Period N Example of Turnkey Project TOT s 3G Network Installation Phase 1, total project value of THB 1,4 million IT System for Ministry of Justice, total project value of THB 1,131 million Automatic Meter Reading phase2 for PEA, total project value of THB 1,45 million Example of Recurring Project Enterprise Resource Planning (ERP) for PEA, provides THB 53.3 million per month SchoolNet for TOT, provides THB 38 million per month Common Use Terminal Equipment System for AOT, provide THB 35.7 million per month 46 SAMART Telcoms Plc. (SAMTEL) Leading ICT Company in Thailand Key Success Factors Solid relationships with key clients and suppliers Simple approach of introducing existing clients to new products and services and signing up new clients to existing products Ability to provide a one stop solution for customers from design, implementation to after sales support Large on the ground presence with over 1,1 staff and [5] engineers providing dedicate local support and execution Track record of completing projects on time and within budget >9% of projects in the past 3 years have been completed on time and within budget Any delays mainly due to external conditions such as government delays. Prevent project delay by closely monitor and coordinate with customers (progress report every 2 weeks), and informing customers suddenly, if delay happened. Track record of winning contracts >9% of projects in the past 3 years tendered for and awarded successfully to SAMTEL Able to continue winning government related contracts despite numerous changes in the government One of Leaders In The Industry Revenue (THB million) 12, 1,226 1,241 9,367 9,365 8,856 7,744 8, 6,23 5,726 5,382 4,535 4,579 4,525 4,188 4, 3,49 3,584 2,647 1,917 1,423 1, SAMTEL Loxley AIT Forth JTS Geographical Coverage 38 teleports country wide facilitating unrivalled nationwide implementation and maintenance service 4 on the ground Airport Operations Teams providing 24/7 support Largest ERP project in SE Asia with more than 16 Million customers and 4, SAP users 47

25 SAMART Telcoms Plc. (SAMTEL) Key Project Highlights CUTE (Common Use Terminal Equipment System) AIMS (Airport Information Management System) Installation Phase Project Owner: Project Value: Airport Authority of Thailand PCL (AOT) for Suvarnnabhumi International Airport Bt 2,133 million Project Duration: 5 years (29-213) Scope of work: Shared facility that allows the airlines staff accession to check-in, transfer and gate counter applications on a common use basis Project Owner: Project Value: Samtel s Portion: Airport Authority of Thailand PCL (AOT) for Suvarnnabhumi International Airport Bt 2,225 million Bt 775 million Project Duration: 2 years (23-25) Scope of work: Maintenance Phase Contract Value: Install AIMS infrastructure Bt 539 million (25% of installation value) Project Duration: 6 years (28-214) Scope of work: Operate and maintenance computer server and equipment Operate and maintenance AIMS network system 48 SAMART Telcoms Plc. (SAMTEL) Key Project Highlights SchoolNet Extension (ipstar( Internet) TOT s 3G Network Installation Phase 1 Project Owner: TOT Public Co, Ltd Total Project Value: Bt. 15,999.5 million SAMTEL s Portion: Bt 1,4 million Project Duration: 2. yrs. Project Details; Provide system integration and equipment Install 4,772 base stations nationwide, catering 7 million users Estimate Revenue Recognition; Project Owner: TOT Public Co, Ltd Project Value: Bt 2,292 million Project Duration: 6 months (Mar 211-Feb 216) Scope of work: Link ipstar to 1, secondary schools nationwide Provide voice & internet access 211 Rev. 5,687 MB 212 Rev. 2,712 MB 213 Rev. 1,629 MB 214 Rev. 372 MB 3G Related Potential Projects 3G Core MB / Project (signed) 3G Extension 375 MB / Project (signed) MA works for 3G Roll-out out Phase 1: 52 MB / Year (start 215) 49

26 SAMART Telcoms Plc. (SAMTEL) Key Project Highlights Automatic Meter Reading (AMR Phase I) Automatic Meter Reading (AMR Phase II) Project Owner: Provincial Electricity Authority of Thailand (PEA) Project Value: Bt 1,45 million Project Duration: 5 years ( ) Scope of work: Install and implement 5, units of wireless meter system Automatic Meter Reading Phase 1 MA Project Owner: Provincial Electricity Authority of Thailand (PEA) Project Value: Bt 889 million Project Duration: 5 years (27-212) Scope of work: Install and implement 3, units of wireless meter system Project Owner: Provincial Electricity Authority of Thailand (PEA) Project Value: Bt 399 million Project Duration: 3 years ( ) Scope of work: Maintenance Agreement for Automatic Meter Reading Phase 1 AMR I add units 162 MB / Project (signed) 5 SAMART Telcoms Plc. (SAMTEL) Potential Project in 214 CUTE II (Common Use Terminal Equipment System) APPS (Advance Passenger Processing System) Project Owner: Airport Authority of Thailand PCL (AOT) Project Owner: Project Value: Project Duration: 5 years Airport Authority of Thailand PCL (AOT) Bt 2,5 million Expected Sign: June 214 Scope of work: Shared facility that allows the airlines staff accession to check-in, transfer and gate counter applications on a common use basis at Suvarnnabhumi International Airport Project Value: Bt 7,8 million Samtel s Portion: Bt 3,4 million Project Duration: 5 years Bid: April 21, 214 Expected Sign: June 214 Scope of work: Process information checking of travelers in advance of their arrival into and departure out of the country 51

27 SAMART Telcoms Plc. (SAMTEL) The Catalyst: Healthy backlog & robust growth potential 1Q 214 Project Signed: Value over THB 1,15 million Projects on hand: Backlog as end of 1Q 214 THB 6,645 million 25, 214: Potential Projects APPS (AOT) 3, MB CUTE outsource 2,5 MB 2, TOT 3G Phase I Potential Digital TV Trunk Radio/ 2, MB 1,6 MB 15, GIS Map (BMA) 1,4 Smartgrid Pattaya 1,4 MB 1, 2, (PEA) Cash Receipt system 1, MB 5, 4,98 7, 7,68 7,96 (RD) Land & Map Info II 1, MB E 214F Project Mega Project (DOL) Others 52 SAMART Telcoms Plc. (SAMTEL) Focus on Long Term Projects % Recurring Revenue 48% 42% 22% 35% 19% 29% 32% 33% 34% 15, Recurring Revenue Project-based Revenue 13, 12, 9, 6, 3, 11, 1,226 9,367 7,738 8,618 6,217 5,726 7,371 8,252 6,358 5,482 2,9 2,177 4,847 3,713 1,691 4,382 1,43 1,29 1,37 2,13 1,974 2, ,9 3,629 1, F 214F 215F SchoolNet CUTE PortalNet AMR Maintenance APPS 3G Maintenance Revenue Department RFID 53

28 SAMART Telcoms Plc. (SAMTEL) Financial Highlights Profitability Revenue Breakdown by Type of Customer 12, 16, 12.% 1, 4% 14, 12, 1, 8, 6, 4, 2, 1.7% 1.1% 9.1% 1,226 9, % 7.% 7,738 6, % 5, % 1.% 8.% 6.% 4.% 3.8% 2,9 2,177 2,77 2.% % Q214 Revenue Profit NPM Remark: Thailand had a coup d etat in September 26 resulted in the limited projects released. 8, 6, 4, 2, Baht % 15% 7% 96% 13% 85% 93% 96% 87% Government Corporate Dividend Payout 55% 6% 55% 51% 51% 53% 54% % 4% 2% % * 1H 213: interim dividend 54 SAMART Telcoms Plc. (SAMTEL) Capital Management Capital Structure Gearing Ratio Times (x) 6,575 5,859 5,823 4,242 3,394 3,144 3,177 1,723 2,235 2,735 1,389 1,684 1,575 1,815 1,274 1, Q D/E LT D/E Cash Interest-bearing Debts Equity Q214 Interest-bearing Debts Composition Interest Coverage Ratio Times (x) 8, 4, 8% 92% 3% 97% 2% 98% 1% 99% 14% 86% 16% 84% 1% 9% 9% 91% Q Q214 Short-term loan Long-term loan 55

29 Contact Center Business 56 One to One Contacts Plc. (OTO) Trading Summary SAMART Trading Summary One to One Contact First day trade on 15 May 214 IPO Price THB 5.4 Total Number of Shares 28,, shares Current Share Price THB 7.5 Par Value THB 1. Current PER 22.57x Market / Industry MAI Sector PER 53.8x Member of Index - Current Market Cap THB 1.97 million (USD 62 million) Note: Data as of June 27 th

30 One to One Contacts Plc. (OTO) Listed in May 214 At a Glance Customer Base Established in August 2. Registered Capital = THB 28 mm Paid-up Capital = THB 21 mm Offer the total customer management solutions with customized services. Number of seat = more than 2, seats Call handled in 213 = 28 million calls Service hour = 24 x 7 Others Gov. State -owned Enterprise Owned CC sites = 3 sites Outsource service center = 4 5 centers Retail Customer Segment Bank Alliance with Global Partners Research Insurance Airline 58 One to One Contacts Plc. (OTO) Offering Products and Services Aspect Cisco Turnkey (Products & Services) Customer Relationship Management (CRM) Knowledge Base Quality Monitoring Contact Center System Hosted Contact Center Cloud Contact Center Outsource (services) Customer Care Order Taking Tele-survey Consultant Solution Design Maintenance OTO is the market pioneer offer both total Turnkey Solutions and fully-integrated outsourced service. Outsourced service includes fully-integrated contact center outsourced service, CSR outsourced service, and facility outsourced service. OTO has its own staff training center to ensure the capability of its CSR personnel. 59

31 One to One Contacts Plc. (OTO) Revenues Analysis Sales and Services Revenues Services Revenues Breakdown MB 1, % 2.6% 3.5% 9.2% 1.4% 8.4% % 2.4% 8.1% % 66.6% 8.1% Sales Revenue (TK) Services Revenue (OS&MA) Fully Outsource Facility Outsource Service Representatiove Maintainance Service 6 One to One Contacts Plc. (OTO) Profitability Revenue Net Profit and Net Profit Margin MB 1, % 12.9% % 14% 12% 1% 8% % 2.6% 2.4% Q214 6% 4% 2% % Revenue Ne t Pro fit Net Pro fir Margin 61

32 One to One Contacts Plc. (OTO) Capital Structure Debt and Equity Components Debt to Equity Ratio MB Liabilities Shareholder Equities Debt to Equity Ratio D/E ratio decreased significantly as a result of the loan repayment during As of 31 December 213, OTO has no loan and leasing so IBD/E ratio equal to zero. Therefore, OTO has ample room to gear up for future investment. Non-listed Business 63

33 SAMART Corporation Plc. (SAMART) Business Structure Listed in ,7 mill shares (par THB 1/share) Market cap = Approx. THB 2.73 Billion Free float = 55.51% 7% 51% 7% NON-LISTED BUSINESSES Call center Related Services Utilities & Transportations Listed 7% 7% 1% Security solutions Air Traffic Mgt 1% TV/Satellite antenna manufacturer 1% Power plant 23 MW 9% Waste new airport 1% Utilities & Transportations 8% TEDA CO.,LTD. Remark: Market cap based on price of stocks as of 31 st March Non-listed Business Utilities & Transportations Business 65

34 Non-listed Businesses Utilities & Transportations Business Group Air Traffic Management Electricity Generation Power Substation Contractor Transportations-related related Contractor Current Business Operation Manage nationwide air traffic service in Cambodia. Concession until 233 (with extension option). Manage and operate 23 MWe power plant in Cambodia. One of the leading contractors for power substation/ distribution & transmission lines. Key Clients: PEA/ MEA/ EGAT Contractor in transportationrelated works; for example, air traffic system, locomotive system etc. Potential Business Expand the air traffic and related businesses in Laos and Myanmar. Looking for the new opportunity in power generation in Thailand and Cambodia. Over Baht 1 billion in budget for building new power substation, distribution & transmission lines from PEA/ MEA/ EGAT in the next 5 years Expansion in country s infrastructure basic 66 Non-listed Businesses Utilities & Transportations: Cambodia Air Traffic Services Revenues Quarterly Flight Information No. of flight 25, 2, 15, 14,785 14,661 13,963 9% CAGR for the past 1 years 15,146 15,594 13,995 14,99 2,159 19,865 18,68 17,12 17,749 16,33 1 1, 5, Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4-1Q- 2Q- 3Q- 4Q- 1Q- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4-1Q- 2Q- 3Q- 4Q- 1Q- 214 Highlights Monopoly concession to manage nationwide air traffic under revenue sharing scheme (sharing 3% on over flight & 5% on landing) The concession duration is until year 233 with the extendable agreement (1 years) subject to further investment. Tariff collection from airlines (domestic / international / over flight); ETC. The fully integration of ASEAN Economic Community (AEC) in 215 widen the opportunity of SAMART Group to expand the air traffic and related businesses in Laos and Myanmar. 67

35 Non-listed Businesses Utilities & Transportations: Kampot Power Plant Revenues Highlight Q1- Q2- Q Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q Electricity generating supply to Kampot Cement Client Profile: Kampot Cement Min. 16 MWe contracted capacity from 27 to 217 Upside potential with 23 MWe full capacity USD 6 million a year revenue guaranteed The largest cement producer in Cambodia JV between Siam Cement Group (93%) and Khaou Chuly Group (7%), Cambodia's top construction and engineering firm Cambodia needs huge infrastructure investment in the near future. Explore opportunity in alternative energy in Southeast Asia. 68 Non-listed Businesses Utilities & Transportations: SAMART U-Trans SAMART U-Trans Project: Air Traffic Management (Thailand Modernization CNS/ATM System) Owner: Value: Type: Duration: Aeronautical Radio of Thailand 1,67 MB Turnkey Project 2 years + 3 Years warranty Status: Contract signed on November 8, 213 Upside Potential 3 MB (Turnkey-System Expansion) Revenue Recognition Schedule Project Total Value 4Q/213 1Q/214 2Q/214 3Q/214 4Q/ TMCS 1,67 MB

36 Non-listed Businesses Utilities & Transportations: TEDA TEDA Group 1,14 o Established in 1975 o Acquired by SUT in 1Q/213 o Backlog (end of 1Q/14) = 1,392 MB Revenues Highlights o Potential Project value over 1, MB from EGAT, PEA and MEA F Remark: SUT acquired TEDA in 1Q/ Non-listed Business Related Business 71

37 Non-listed Businesses Related Business: Samart Engineering Revenues 664 Business Highlight Over 5 years experience in Thailand s TV broadcasting equipment. Pioneer in manufacture of TV antennas and satellite dishes Owned the fully-equipped factory in Pratumthani province Q Non-listed Businesses Related Business: Samart Engineering NEW BUSINESS OPPORTUNITY The transition to the digital terrestrial TV system (DTTV) 73

38 Non-listed Businesses Related Business: Samart Engineering The Digital switch will be the new catalyst 4 million televisions in Thailand 22 million households 1.8x x Average TV/ = household Source: AC Nielsen 4 million TVs in Thailand 22 million subsidy coupons by NBTC 1, Baht The coupon will be distributed once the auction is complete, in order to hasten the digital transition, Coupon subsidies will be distributed as network coverage expands; o 75% coverage in 214 o 89% coverage in 215 o 98% coverage in Non-listed Businesses Related Business: Samart Engineering Digital TV Set Top Box 75

39 Non-listed Businesses Related Business: Samart Engineering Indoor & Outdoor Antenna Outdoor Indoor On vehicle 76 Non-listed Businesses Related Business: Samart Engineering Our Strong Distribution Kiosk in i-mobile Shop & Dealers Modern Trade Direct Sales 77

40 Non-listed Businesses Related Business: Samart Engineering Our Strengths Expertise (> 5 years experience) Assured Product Quality Product Varieties User Friendly Strong Distribution Network 78 Non-listed Businesses Related Businesses: Vision and Security System Revenues Highlight Expert in providing various and different communication and security design of the integrated solution Solid growth over the last 3 years. Backlog as of Dec 212 4MB 1, Customers Bangkok Metropolitan Authority Ministry of Defense Government Center F Potential Projects (214) Bangkok Metro Author.: Chiengmai Province: Yala 6 Amphurs: AOT: Value > 1,4 MB 79

41 SAMART Corporation Plc. (SAMART) Consolidated Performance: Strong Profit Growth Profitability Revenues Breakdown by Segment 24, 12% 25, 2, 19,649 16,286 17,35 16,259 19,964 22, % 6.3% 17,97 6.3% 7.% 6.% 5.% 18, 12, 6, 12% 11% 77% 12% 15% 17% 36% 68% 52% 16% 15% 5% 35% 5% 34% 14% 45% 41% 42% 46% 15, 1, 5, - 4.2% 3.8% 2.9% 2.6% 6, % ,83 1, Q214 Revenues Profit NPM 4.% 3.% 2.% 1.%.% Mobile Multimedia (SIM) ICT Solutions (SAMTEL) Non-listed Businesses Dividend Payout Baht 1 74% 8% 61%.8 53% 61% 61% 56% 54% 6%.6 4% % % * 1H 213: interim dividend 8 SAMART Corporation Plc. (SAMART) Group Capital Management Capital Structure Gearing Ratio Times (x) D/E L-T Debt/Equity 5,969 5,67 6,916 4,677 8,5 4,967 5,669 5,526 8,574 5,995 9,64 9,49 9,533 9,15 8,293 6, , ,69 1,118 1,677 1, Q Q214 Cash Interest-bearing Debts Equity Interest-bearing Debts Composition Interest Coverage Ratio Times (x) ,969 29% 71% 6,916 21% 79% 8,5 1% 9% 5,669 1% 9% 8,574 18% 83% 9,532 17% 83% 9,63 11% 89% 9,49 9% 91% Q Q214 Short-term loan Long-term loan 81

42 SAMART Corporation Plc. (SAMART) Group Recurring Revenues: Supporting the sustainable growth % Recurring to Total Revenues 17% 18% 24% 21% 28% 26% 1, 9,739 8, 7,248 2,367 6, 4, 2, - 5,747 2,171 4,835 4,253 1,992 3,836 1,448 1,861 2,83 3,2 1,296 1, , ,31 3, ,9 2,13 1,974 2,256 1,29 1, F 2,99 4, F SAMTEL SIM Non-listed Businesses 82 SAMART Corporation Plc. (SAMART) Net Capital Expenditure 2, ,171 1,57 1, , SAMTEL SIM Non-listed Businesses Key Investments SAMTEL AMR I (PEA) CUTE Suvarnnabhumi (AOT) CUTE Suvarnnabhumi / CUTE Makkasan (AOT) School Net II (TOT) / CUTE Chiang Mai (AOT) / AMR (PEA) Acquisition of Portal Net Co., Ltd (PEA) CUTE Phuket (AOT) SIM Content Business MVNO / Content Business Non-listed Businesses KPP (Cambodia) OTO (SSO) Acquired TEDA 83

43 84 Group Outlook Group Direction The mission possible Maintain healthy backlog of ICT project Maintain revenue stream by focusing on recurring revenue works NON-LISTED BUSINESSES Concentrate on high value /long term project Transform from trading business to service based business Maintain No. 1 MVNO Provider in Thailand Capture new business opportunity in utilities and transportation sectors Aim to be the market leader in handset business Leveraging MVNO & 3G + 4G opportunity to capture the business growth Strengthen fundamental by building the recurring business model Regional leading players with industry outperforming returns Strong synergy among all businesses Creative diverted portfolio resulting in the resilient to the external forces Consistent revenue stream Sustainable development and create long-term value Towards the sustainable growth Unlock the hidden value by listed in the stock exchange 85

44 Business Expansion Strategy To grow business profitably Expansion Objectives Non-listed Businesses Continually invest in sustainability business Provide a superior capabilities return to all stakeholders Acquisitions Strategic Alliances (JV) Allied with Business Partners Strategic Options Expand to the new business area with high growth potential Penetrate the markets with secured technology access and/or specialty market Allied with strong local and global players to share the competitive advantages Etc. Investment Criteria Low capital cost Continuing cost competitiveness Strong synergy with core business and consistency with SAMART model SAMART GROUP: Targets 35, 31, 3, 25, 22,434 2, 15, 19,649 15,434 16,286 17,35 16,266 19,964 17,1 13, 1, 11,398 9,39 8,125 6,217 5,726 7,2 1,226 7,744 7,42 1,3 9,367 11, 5, 2,177 2, F 87

45 Disclaimer This presentation contains some information from other sources, that SAMART, SIM and SAMTEL do not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images ( the Content ) on this presentation. Some content may contain forward looking statements, that based on management s view upon the information currently available to us. These statement are subject to certain risks and uncertainties that could cause the actual results materially differed from what had been previously stated. 88 Lists of Abbreviation Company / Organization Technical Term Abbreviation Company / Organization Abbreviation Technical Term AOT Airport of Thailand Public Company Limited AIMS Airport Information Management System BMA Bangkok Mass Transit Authority AMR Automatic Meter Reading CAT CAT Telecom Public Company Limited ARPU Average Revenue Per User CM City Chiang Mai City CUTE Common Use Terminal Equipment System DOL Department of Land ERP Enterprise Resource Planning EGAT Electricity Generating Authority of Thailand IR International Roaming IEAT Industrial Estate Authority of Thailand MVNO Mobile Virtual Network Operator MEA Metropolitan Electricity Authority POS/EFT Point of Sale/ Electronic Fund Transfer MOD Ministry of Defense SNS Social Networking Service MOL Ministry of Labour VAS Value Added Service MOI Ministry of Interior VSAT Very Small Aperture Terminal PEA Provincial Electricity Authority SRT State Railway of Thailand TOT TOT Public Company Limited 89