Jasmine International Pcl. (JAS)

Transcription

1 Jasmine International Pcl. (JAS) Y2013 Performance Review JAS Update o o 3BB has extended the promotion period for the package of broadband Internet service based on FTTx technology, maximum speed 1,000 Mbps, starting at 30Mbps at Bt 1,200 / month (The previous price : Bt 2,490) to 30 June Feb 2014, the Board of Directors meeting of JAS approved paying dividend for the year 2013 to the shareholders of ordinary share, totaling 7,137.39mn shares at Bt 0.25 per share. Financial Review 2013 Operation Results (Consolidated) 2013 Sales and Services Contribution Sales and services income from Broadband business continued growing In 2013, the sales and services income was recorded at Bt 11,123 mn, increasing by 7% YoY, compared to that of Bt 10,369 mn in Most was from the contribution of Triple T Broadband Public Company Limited ( TTTBB ) and Triple T Internet Company Limited ( TTTI ). Broadband 86% 11,123 MB Telecom Network & Service Provider 11% System Integration Others 2% 1% In 4Q2013, the sales and services income of the Company and its subsidiaries was Bt 2,940 mn, increasing by 4% QoQ, compared to that of Bt 2,820 mn in 3Q2013. The increase was mainly due to the contribution of Broadband business Sales and Services Contribution Broadband 76% Telecom Network & Service Provider 12% For the year 2013, 86% of the sales and service contribution was from Broadband business, 11% from Telecom Network & Service Provider business, 2% from System Integration business and another 1% from other businesses. 10,369MB Others 1% System Integration 11% Jasmine International Pcl February 2014

2 The total revenue as recorded in the 2013 financial statements was Bt 11,260 mn, increasing by 7% when compared to that of Bt 10,501 mn in About 86% of the total revenue of 2013 was from TTTBB and TTTI, which including VAT was Bt 10,296 mn. When excluding VAT, the revenue of TTTBB and TTTI was Bt 9,623 mn, increasing by 19% when compared to that of Bt 8,068 mn in As at the end of 4Q2013, 3BB had a total of 1,424k subscribers. Of this number, 351k subscribers were in Bangkok and perimeter; whereas, 1,073k subscribers were in the provincial areas. In 4Q2013, there were about 60k additional subscribers and ARPU average was at about Bt 634 /subscriber/month. Broadband - Subscribers('000) , , , , , , , , , , , , ,028 1,067 1,112 1,150 1,213 1,256 1,303 1, ,028 1, Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q Previous period subscribers Net adds Jasmine International Pcl February 2014

3 Operating expenses declined by 3% from 2012 As shown in the financial statements, the total operating expenses for the year 2013 were Bt 7,266 mn, decreasing by 3% from Bt 7,510 mn in Details are as follows:- Cost of sales and services declined The cost of sales and services in 2013 was Bt 4,475 mn, compared to that of Bt 4,686 mn in 2012, decreasing by 5% due to good cost management and the decrease in cost of sales and services of System Integration business. In 4Q2013, the cost of sales and services was Bt 1,217 mn, increasing by 6% compared to that of Bt 1,153 mn in 3Q2013 but decreasing by 17% when compared to that of Bt 1,460 mn in 4Q2012 due to the decrease in the cost of System Integration business as its income decreased. However, in comparison to the sales and services income, the gross margin was recorded as increasing from 55% in 2012 to 60% in Sales and services expenses The sales and services expenses (including administration expenses) for the year 2013 were Bt 2,563 mn, compared to that of Bt 2,372 mn in The sales and services expenses in 4Q2013 were Bt 656 mn, compared to that of Bt 650 mn in 3Q2013 when compared to that of Bt 559 mn in 4Q2012. Such increase was mainly because of employee expenses, office expenses, and depreciation whereas marketing expenses decreased. Other Expenses In 2013, the company and its subsidiaries set up an allowance for doubtful debts of TTTI of Bt 50 mn and an allowance for doubtful debts of the subsidiaries of Bt 7 mn. Moreover, the company recorded bad debt and impairment losses on assets of the subsidiaries of Bt 165 mn. Jasmine International Pcl February 2014

4 Financial expenses declined by 23% Operating profit and Net profit increased In 2013, the financial expenses of the Company and its subsidiaries were Bt 312 mn, decreasing by 23% compared to that of Bt 404 mn in This decrease was due to loan repayment and payment for accounts payable for equipment of the Company and its subsidiaries. In 4Q2013, the financial expenses of the Company and its subsidiaries were Bt 75 mn, decreasing by 4% compared to that of Bt 79 mn in 3Q2013 and decreasing by 21% when compared to that of Bt 95 mn in 4Q2012. In 2013, the operating profit of the Company and its subsidiaries was Bt 3,301 mn, increasing by 31% compared to that of Bt 2,517 mn in This amount excludes the allowance from unrealized FX loss of the subsidiaries of Bt 7 mn, the allowance for doubtful debts of TTTI of Bt 50 mn, the allowance for doubtful debts of the subsidiaries of Bt 7 mn, bad debt and impairment losses on assets of the subsidiaries of Bt 165 mn and deferred tax of Bt 70 mn. As shown in the 2013 consolidated financial statements, the Company and its subsidiaries recorded a net profit of Bt 3,002 mn, compared to Bt 2,028 mn in 2012, increasing by 48%. In 4Q2013, the operating profit (including FX gains (losses) and other expenses) of the Company and its subsidiaries was Bt 914 mn, increasing by 13% compared to Bt 810 mn in 3Q2013 and increasing by 3% compared to Bt 887 mn in 4Q2012. EBITDA for the year 2013 was Bt 6,118 mn, increasing by 16% compared to Bt 5,276 mn in EBITDA margin in 2013 was 55%, compared to 51% in In 4Q2013, EBITDA was Bt 1,627 mn, increasing by 7% compared to Bt 1,527 mn in 3Q2013 and increasing by 3% compared to Bt 1,585 mn in 4Q2012. EBITDA margin in 4Q2013 was 55%. Jasmine International Pcl February 2014

5 Financial Statement Summary (Baht mn) 4Q12 3Q13 4Q13 %QoQ %YoY %YoY Sales 3,007 2,820 2,940 4% -2% 10,369 11,123 7% Other income % 275% % Total revenues 3,027 2,845 3,014 6% 0% 10,430 11,260 8% Cost of sales -1,460-1,153-1,217 6% -17% -4,686-4,475-5% Gross profit 1,547 1,667 1,723 3% 11% 5,683 6,648 17% SG&A % 17% -2,372-2,563 8% Profit(Loss)Sharing from ass % 30% % Loss on impairment % -79% % FX gain (loss) and Other expenses % -53% % EBIT ,015 2% 45% 2,992 3,994 33% Financial expenses % -21% % Corporate income tax % -8% % Minority interest % -139% % Net profit % 40% 2,028 3,002 48% FX gain (loss) and other items % -55% % Operating profit % 3% 2,517 3,301 31% Depreciation % 11% 1,715 1,900 11% EBITDA 1,585 1,527 1,627 7% 3% 5,276 6,118 16% Gross margin 51% 59% 59% 55% 60% EBITDA margin 53% 54% 55% 51% 55% Jasmine International Pcl February 2014

6 Business Update Jasmine s Key Strengths 1. Well positioned in an underpenetrated and rapidly growing market 2. Strong Brand Recognition and Competitive Pricing Leading to Market Share Gains 3. Extensive broadband network with high reliability and scalable infrastructure 4. Strong and extensive sales and distribution network for effective marketing 5. Leader in provision of innovative broadband products and services Jasmine International Pcl February 2014

7 1. Well Positioned in an Underpenetrated and Rapidly Growing Market 150% 100% Thailand is One of the Most Underpenetrated Markets % of Total Households; As of 31 December % 99.1% 92.3% 68.3% 50% 0% 18.9% Singapore Korea Hong Kong Japan Thailand 40% 30% But Penetration Has Been Gradually Increasing and Expected to Continue % of Total Households 35.2% 27.6% 20% 14.7% 17.0% 18.9% 10% 0% E 2018E 80 Population & Household Growth to Drive Higher Penetration (Population; MM) (Household; MM) 30 CAGR: 0.4% CAGR: 0.9% E E Source Media Partners Asia Jasmine International Pcl February 2014

8 Broadband Homes Passed (2012; MM) Favorable Demographics (2012 Population; 64.4MM) Bangkok 41% 1.7 Rural Areas 63% Bangkok 15% Rest of Thailand 59% 28% 72% 11.5 Other Urban Areas 22% Subscribed Not Subscribed Source Media Partners Asia 2. Strong Brand Recognition and Competitive Pricing Leading to Market Share Gains Jasmine has Consistently Increased Market Share over Time Fixed Broadband Subscribers (%) 30% 27.1% 28.3% 28.9% 25% 24.9% 20% 15% Q Source Media Partners Asia Jasmine International Pcl February 2014

9 10,000 7,500 5,000 2,500 0 Source Fiber Deployments Expected to Coexist Rather than Replace Copper Networks to Provide More Diverse Services Growth will be driven by expansion into new areas both within BMA and into upcountry provinces Subscribers ( 000) Household Penetration (%) 262 4, % Media Partners Asia 168 6, % 1,226 3,877 5,491 6, , % E 2018E ADSL FTTx Cable Total Penetration Thailand s Broadband Providers are Expected to Continue to Improve Speeds while Keeping Prices Relatively Constant ARPU (US$) E CAGR: 15.0% E CAGR: 12.0% % 45% 30% 15% 0% E 2018E ADSL FTTx Cable Source Media Partners Asia Our Strong Brand Recognition and Reputation for Quality and Reliability Has Been Widely Recognized by the Industry No. 1 Brand in Thailand for Home Internet by Marketeer Magazine 2011 Broadband Service Provider of the Year by Frost & Sullivan Trust Brand Gold Awards Winner for Internet Service Provider by Readers Digest Trust Brand Gold Awards Winner for Internet Service Provider by Readers Digest Jasmine International Pcl February 2014

10 3. Extensive Broadband Network with High Reliability and Scalable Infrastructure We Have Grown Our Subscriber Base at a Rapid Pace. 1,600 1, Broadband Subscribers ( 000) Homes Passed Served (1) 1,213 1,423 40% 1,028 30% % 21.7% 24.5% 27.8% 27.9% 10% Homes Passed Served (%) Broadband Subscribers ('000) 0% While Ensuring Our Position as One of the Most Reliable Networks in Thailand Relatively new cables with an average age of 5 years Redundant physical route in network design across the region Only part of OFC routes (inter-province) shown EGAT 2,068 km (all leased for backup) PEA 2,167 km (total leased 5,735km) 3BB 10,800 km (total installed 50,347km) Loop topology in access node design in the provinces Remark: Solid Line denotes Main Route Dashed Line denotes Alternate Route Note 1. Homes passed served represents the number of subscribers at the end of the relevant period as a percentage of total homes passed by TTTBB s network at the end of the relevant period Jasmine International Pcl February 2014

11 4. Strong and Extensive Sales and Distribution Network for Effective Marketing 3BB s effective proximity sales distribution channels 3BB s proximity sales distribution channels include its shops, minishops and kiosks, door-todoor sales, and its hosted local events Stores and Kiosks Approximately 53% of 3BB s sales are from its stores as of December 31, person in-house sales team across 357 3BB stores, which include over 300 3BB shops/minishops in department stores and townhouses and various 3BB kiosks, in 76 provinces Door-to-door Approximately 43% of 3BB s sales are from its door-to-door sales as of December 31, 2013 Door-to-door sales team consists of more than 500 employees with a target of 500 doors per day Events and Relationships The company targets customers by hosting events in certain communities where the company is looking to expand coverage Sales staff develop and maintain contact with real estate companies to ensure that new buildings will be connected to 3BB network 3BB s Distance Channels: Online and Telesales Online 3BB s website is a key destination for customers to discover and buy their products Presents online deals and promotions for 3BB products Telesales 3BB engages in inbound telemarketing in which they present current promotions and plan upgrades to current and potential customers Jasmine International Pcl February 2014

12 5. Leader in Provision of Innovative Broadband Products and Services Launched Maxnet 2Mb marketing campaign to introduce and promote high 2Mbps Internet service Launched broadband services with a minimum speed of 3 Mbps across entire subscriber base Began offering public WiFi services to mobile customers of Advanced Info Services PCL ( AIS ) Introduced broadband services with speeds ranging from of 20 to 50 Mbps using VDSL technology Started providing VoIP services in addition to broadband Internet services Launched certain value-added services including, Movie Buffet, IPTV and hotspot wireless Internet Started providing broadband services with a minimum speed of 6 Mbps across entire subscriber base Launched broadband services with a minimum speed of 10 Mbps across entire subscriber base Expanded FTTx for mass market in major provinces and introduced FTTX wifi with minimum speed of 10 Mbps in major cities Introduced domestic and international Internet leased line, IP-MLPS leased line and Internet data center services Rebranded services under the 3BB trade name Launched broadband services with a minimum speed of 4 Mbps across entire subscriber base Introduced broadband services with speeds ranging from of 30 to 100 Mbps using new broadband services utilizing fiber optics with FTTx Launched CloudIPTV and Cloudbox (online storage) for all customers Jasmine International Pcl February 2014

13 Our Continued Growth to be Underpinned by Proven Strategies Pursue Growth by Expanding into Existing and New Regions Capitalize on the growth of broadband penetration in Thailand Maintain focus on rolling out the ADSL technology across under-penetrated geographical areas Implement the rollout plan to target major cities in every province where there is high population density Enhance Subscriber Retention and Upselling Increase customer satisfaction through all service interactions with its subscribers Continue to enhance in-house capabilities in order to maintain high quality of support Increase Market Share in Highly Penetrated Urban Areas Offer ADSL technology at attractive prices with higher speed, reliability and service quality Offer FTTx to targeted subscribers in the highly penetrated urban areas Increase market share in Bangkok over the next few years by increasing the number of physical stores Continue to Focus on Improving Operating Efficiency Improve the operational efficiency of business, in particular in the areas of human resources, IT, billing, customer service and network Expand the international circuit to take advantage of economies of scale Jasmine International Pcl February 2014

14 Disclaimer This document has been prepared and distributed by the Investor Relations Department of Jasmine International Public Company Limited ("JAS") solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares or other securities issued in relation to JAS and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. JAS does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, JAS assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of JAS or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. All information contained in this document is presented as of the date indicated within, and JAS assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, JAS assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. JAS undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Jasmine International Pcl February 2014