Samart Corporation PCL. November 2009

Transcription

1 Samart Corporation PCL November

2 Group s Background Started as a radio repair shop in Saraburi Province north of Bangkok Manuf of TV & Satellite Antenna System Integration Projects VSAT Service Operator Paging Network Operator GSM Network Operator Mobile Handset Distributor Call Center Services Provider Multimedia Content Provider ATM Services (Cambodia) Captive Power Plant 23MW (Cambodia) Waste Management Services 2

3 Samart: Today. Market leader in C, Ku band, TV antenna & Set top boxes Top 3 System Integrator & largest satellite application provider Leading call center provider Awarded Best C C in Asia-Pacific # 2 handset brand in Thailand & #1 voice content provider Invested over $ 50 mill in ATM & Power projects In Cambodia H.M. The King, bestowed upon Royal Gardua in

4 Key Investment Theme - Samart I-Mobile PCL (SIM) was granted Type I Mobile Virtual Network Operator (MVNO) license in Sept SIM to launch its MVNO service by Dec09/Jan10 - SIM: Beneficiary of 3G launch in Thailand. - Opportunity to sell handsets and content for 3G subscribers in Thailand - As economy recovers, I-mobile handset sales in domestic and overseas markets to grow. 4

5 Key Investment Theme - Strong project backlog of ICT projects under Samart Telcoms PCL - Increase in IT outsourcing trend - Baht 8,000 mill as of today - More ICT spending from Government agencies in

6 Key Investment Theme - Cambodian businesses (under Samart Corp) continue to grow - Strong quarterly results for the Group in Q3 & Q Service income in the Group to increase over next two years Unlisted Business: Baht 800 mill p.a. (CATS) Baht 200 mill p.a. (KPP) Baht 200 mill p.a. (OTO) SIM: Baht 800 mill p.a. (Content) SAMTEL: Baht 420 mill p.a. (CUTE) Baht 520 mill p.a (Sch net) 6

7 Background 1950: 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 1800 services. (Divested later in 2000) Telekom Malaysia acquires 25% in Samart 2001: Samart wins 32 yr concession to build, own & operate Air Traffic Management Services in Cambodia 2003: Samart I-Mobile a handset and content distributor company was listed in Stock Exchange of Thailand 2005: Samart was awarded Royal Garuda by H.M. The King of Thailand for its services to Thai Society 2006: Samart enters utilities Sector. - Won 10 yr contract to supply 16 MWe to subsidiary of Siam Cement in Cambodia. - Won 10 yr waste management contract at Suvarnabhumi Airport Free Float 41% Shareholding Structure 19% Telekom Malaysia Vilailuck Group 40% Total Shares Outstanding: 976 mill 7

8 Business Structure Listed in mill shares Market cap = USD 183 mill 70% 59% ICT Solutions & Services Mobile multimedia 600 mill shares 4,300 mill shares (par Bt. 0.10/share) Mkt cap = $ 145 mill Mkt cap = $ 215 mill TECH RELATED BUSINESS 100% SAMART Inter Holding 70% 100% 100% 60% Security solutions TV/Satellite antenna manuf Call Center Waste Mgt@ new airport 100% 100% 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 8

9 Revenue & NP Breakdown by Businesses M-09 Total Revenue 18,858 31,002 19,649 16,286 12,704 (in Baht million) Contribution by : SIM 69% 79% 78% 70% 54% SAMTEL 11% 9% 11% 18% 35% Other Biz 30% 12% 11% 12% 10% Increasing contribution from Samtel M-09 Total Profit 584 1, Contribution by : SIM 48% 14% 33% 25% 17% SAMTEL 27% 12% 13% 29% 45% Other Biz 25% 0% 54% 46% 38% Extra Gain* 0% 74% 0% 0% 0% Increasing contribution from Samtel * Disposal of assets 9

10 Samart Inter Holding (In kingdom of Cambodia) Flights Revenue ($ mill) - Monopoly Concession to manage Nationwide Air Tarffic till year 2033 (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 (A) 2005 (A) 2006 (A) 2007 (A) Strategy: Explore similar investment opportunities in Indo-China region 10

11 Samart Inter Holding (In kingdom of Cambodia) - 16 MWe contracted capacity beginning 2008 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 08 - Potential capacity expansion by off-taker Strategy: Explore opportunities in utilities sector in Kingdom of Cambodia - Samart Corp charges USD 1.1 mill in management fees from KPP (per year) - Siam Cement s Board have approved to increase capacity of Kampot Cement by another 200% (i.e. Kampot power shall be able to deploy extra 32 MWe as and when requested by Siam Cement) 11

12 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 2002: Launched Multimedia Content services under brand name BUG 2003: Listed in Stock Exchange of Thailand and raised Baht 1,210 mill (USD 30 mill) 2004: Launched first house brand handset I-mobile VDO phone. Sold 100,000 units in six months 2005: Expanded handset business to Malaysia, Cambodia. Attained 3 rd position (15% market share) in Thailand 2006: 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 2007: 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: 4,300 mill : Prime mister s award for Thai owned brand 12

13 Key Strengths - # 2 Brand in Thailand backed by Strong Product Innovation - Dec 2004 First VDO phone in Thailand - Sept 2005 First MP3 phone in Thailand - Mar 2006 First TV phone in Thailand - Jun 2006 First 8 mill pixel camera phone - Jan 2007 First inbuilt FM antenna speaker phone - Jan 2007 First phone with walkie-talkie function Dual SIM with standby function Motion sensor function - Regional Foot print 2005 Foray into Malaysia Market (exclusive with Nokia for 3G handsets) Appointed dealers in Bangladesh, Lao, Cambodia 2006 Started operations in Bangladesh, Indonesia, Vietnam & India - Market Leader in voice content market 80% of voice content market 13 13

14 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 35 i-mobile handset models to be launched in 2009 Upgraded versions of applications thru i-link 14

15 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 15

16 Category Profit Contributor Volume Driven i-mobile product positioning: Rich Features, Quality Product, Excellence Service IM 550 IM 210 Highlight (Q3 & Q4) Touch / Dual SIM / TV Motion Sensor IM 650* Dual SIM / TV 8 MP Face Detection IM Wide angel, Ultrahigh contrast Dual SIM / TV / Motion Sensor Push mail support Dual SIM FM Radio MP3 Torch / FM IM 108 IM 106 IM 620 Dual SIM / TV / Record TV 3MP Cam/ Casio Hitachi Auto Focus IM 628 Slide / Dual SIM / TV 3MP Cam / Casio Hitachi Auto Focus / LED IM 638 CG Dual Mode ( CG ) / TV Bluetooth / EDGE CDMA Speaker IM 203 MP3/ FM / CIF Cam EMS / MMS / WAP IM 212 Dual SIM/ Bluetooth MP3 / FM / VDO Other Models IM 110 FM IM 207 IM 223 IM 560 MP3 / FM / CIF Cam 100 SMS 200 Phonebook Dual SIM / Bluetooth MP3 / FM / CIF Cam IM 3xx (2.4 & 2.8 ) 2.4 & 2.8 / Touch Dual SIM / TV 2MP Cam Dual SIM / TV / Motion Sensor 5MP Cam / Casio Hitachi Auto Focus / LED IM 232CG Dual Mode (CG) MP3 / FM / CIF Cam Over 20 models launching in 2H-09 Image Contributor QWERTY / Dual SIM / TV Push mail / EDGE / Bluetooth 3.5 Touch / TV / 5 MP Cam HSDPA (Android) / GPS / Wi-Fi IM 640* IM 658 IM Android 3.0 Wide angel, Ultrahigh contrast) Dual SIM / TV / EDGE 8MP Cam/ Face Detection / Smile Shutter 3.0 / Touch Screen / Dual SIM / TV 5MP Cam / Casio Hitachi / Auto Focus / Motion Sensor IM 6xx 16

17 Handset Sales & Margins Total Handsets Sales & Gross Margins Handset sales: Domestic vs Inter 5,000,000 4,500,000 4,440,000 4,023,253 4,038, % 16.00% 14.00% 5,000,000 4,500,000 4,000,000 3,500,000 3,000, % 12.00% 12.00% 10.00% 4,000,000 3,500,000 3,000,000 2,400,000 1,167,761 1,258,130 International 2,500,000 2,000, % 2,490, % 6.00% 2,500,000 2,000,000 Domestic 401,046 1,500,000 1,000, % 1,500,000 1,000,000 2,040,000 2,855,492 2,780,011 2,089, , % 500, M % M Improving handset margins is due to higher margin phones (mostly the low-end) - Margin trend is likely to be sustained in the neighborhood of 10%-12% in

18 Growth Outlook: Handsets - Presently dominates 28% market share in Thailand, 15% in Malaysia & 5% in Indonesia Concentrate in existing countries Expand new market with zero inventory concept. Potential market in 2H-2009 is Bahrain, Philippines Cost saving by setting up warehouse in Singapore to share inventory in Malaysia & Indonesia and ready to export to other countries in region Tie in with operator for co-promotion campaign to promote value of dual SIM & Push mail 18

19 Distribution Channels: 2009 A total of 613 (from 507 in 2008) outlets in domestic market (including shops, franchisees, Kiosk, modern trade) A total of 170 (from 104 in 2008) outlets in international market (including shops, franchisees, Kiosk, modern trade, etc.) 19

20 Content Business: Unique positioning Voice BUG1900 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 20

21 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 50 mill mobile & 10 mill fixed line users) Act as an content aggregator (work with over 100+ content/media providers) Content is accessible by all fixed line and mobile subscribers - Revenue sharing with operators - up to 50% for voice revenue - up to 20% for non-voice contents 50% content is in-house, 50% outsourced Biggest in sport content provider in Thailand 21

22 Content Business: Voice Business Main Revenue Stream Bug 1900 categories Horoscope Sport Information Voting & TVC Service 3% Sport 36% Information 11% Chat 7% Consultancy 1% Download 15% Entertainme t 4% Horoscope 10% Game 13% Main Revenue Stream Recurring Revenue fixed line operators Mobile operators TTT 20% Other 5% TRUE 23% Orange 14% Other 3% AIS+DPC 55% DTAC Directory Alert & Subscription TOT 52% 28% 22

23 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 23

24 Revenue/NP/Dividend history (all figures in baht million, except for dividend)) 30,000 Revenues Revenue breakdown by segment 25,000 20,000 15,000 10,000 5, ,600 15,434 11,406 6, M % 80% 60% 40% 20% 0% ,300 3,183 1,353 14,860 8,857 6,753 4,715 8, M-09 Cont ent Mobile Solut ions International H/ S Domestic H/ S Net Profit Dividend & Payout Ratio M % % 55% 169% % 160% 140% 120% 100% 80% 60% 40% 20% Incl Baht 115 mill gain from disposal of BLISS/TTM % 24

25 Opportunities for SIM Capture new business opportunities to offer MVNO business in Thailand Strong network of outlet Over 600 outlets & 3,000 dealers Strong and well known mobile device No.2 market share of mobile device Strong in content business No.1 market share (non-operator) in Thailand MVNO Biz Offer total mobile Service to end user & corporate user Device Content & Application Tariff plan 25 25

26 Samart Telcoms Public Company Limited 1995: Received VSAT concession from PTD Listed on Stock Exchange of Thailand 1996: 10 yr. Contract to implement rural telephone project in Thailand Shareholding Structure Free Float 25% 1997: Started POSEFT network 2006: Acquired system integration business from Samart Corp 2007: Won 5 yr school net project from MOE 2008: Revenue was highest since its inception 5% Bangkok Bank 70% 2009: Company wins several projects and project backlog is Baht 8,000 mill (year to date) Samart Corp Total Shares: 600 mill 26

27 Samart Telcoms: Existing Businesses Know how in VSAT network & applications: - Rural Telephony network in 4,000 villages - School net network in 10,600 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) 27

28 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 - Long-term projects min 5yrs tenure (monthly revenue) - Gross margins of over 25% - Turnkey projects - Budgetary allocation every year - Gross margins of over 18-20% - Largest e learning system in Thailand 5 universities - Automatic meter reading system for PEA - Installation & maintenance - Funded by project finance - Funded working capital 28

29 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 70% E-Business 5% System Integration 29

30 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 4,000 villages (Baht 8,640 million) - School net network in 10,600 schools (Baht 2,580 million) - Soft switch installation for TOT (Baht 1,000 million) e auction Contract signing Rollout 30

31 System Integration Project concept Inputs for TOR E Auction Contract Signing Implementation Key Characteristics: -The entire process takes approximately 12 months involving TOR till e auction - Typical project value the we bid is from Bt. 70 mill to Bt. 1,000 mill - Build & Transfer projects - Ability to get maintenance contracts - Yearly budget allocation from State agencies (the budget size is appox Baht 70 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 Final acceptance 31

32 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 1,000 mill) Suvarnabhumi Airport Common User Terminal Equipment System (CUTE) (Project Value THB 1,000 mill) ITV Mobile TV Broadcasting Station Ministry of Defense Communication network System (Baht 799 mill) To be completed by 2009 Department of Industrial Works Computer network systems for supporting services 32

33 IT Outsourcing Project design Budget allocation Key Characteristics: - Built, Own & Operate, or could be one time deployment - Project value range from Baht 350 million to Baht 4,000 million - Yearly budget allocation from State agencies (the budget size is appox Baht 70 billion per year on IT/Networking) E Auction Contract Signing Ongoing and Completed Projects: - Automatic meter reading (Baht 889 million) - CUTE (Baht 2,100 million) Implementation Potential Projects: - Automatic meter reading phase II (Baht 600 million) - Prepaid electricity meter (Baht 1,000 million) - ERP implementation for SOE (Baht 350 million) 33

34 Revenue/NP/Dividend history (all figures in baht million, except for dividend)) 5,000 Revenues Revenue breakdown by segment 4,500 4, % 4,000 3,500 3,000 2,880 2,900 90% 80% 70% 60% 1,554 1,186 1, ,500 2,177 50% Service Revenue Product Revenue 2,000 40% 2,349 1,500 1,000 30% 20% 10% 1, , M-09 0% M Net Profit Dividend & Payout Ratio % 0.358% % 55% 70% 60% 50% M % % 30% 20% 10% 0% 34

35 Samart Corporation PCL Consolidated Financial Performance 35

36 Consolidated Financials (all figures in baht million, except for dividend)) 35,000 30,000 31,001 Revenues 100% Revenue breakdown by segment ,098 1,901 1,479 25,000 80% 2,713 2,117 2,835 20,000 15,000 10,000 19,649 16,286 12,704 60% 40% 24,337 15,434 11,119 4,368 Related Business ICT Solutions (Samtel) Mobile Multimedia (SIM) 6,631 5,000 20% M-09 0% M-09 2,500 2,000 1,990 Net Profit 0.45 Dividend Payout 74% 80% 1,500 1, M % 70% 60% 49% % % 20% % 25% % 10% 0%