November 14, 2012 Disclaimer: This presentation contains statements about expected future events and financial results that are forward looking and

Transcription

1 Analyst Conference 3Q12 Analyst Conference 3Q12 November 14, 2012 Disclaimer: This presentation contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties. For these statements, we claim the protection of the safe harbor for forward looking statements contained in the Private Securities Litigation Reform Act of Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.

2 3Q12 strategic highlights 2 YoY Group service revenue growth remained strong driven by TrueMove H 3G+ and Broadband businesses TrueMove H subscriber base reached 2.5 mn Mobile bl non voice revenue growth continued to be impressive Robust YoY growth in Broadband Internet revenue drove TrueOnline s service revenue Premium subscribers picked up at TrueVisions after the activation of the MPEG 4 broadcasting system

3 3G+, Broadband drive Group service revenue 3 Group service revenue grew YoY on strong growth in 3G+ and Broadband businesses. Academy Fantasia 9 and solid Broadband performance resulted in a QoQ increase in Group revenue EBITDA softened QoQ, YoY mainly from increases in cash opex at True Mobile Group and TrueVisions Baht (millions) TrueMobile TrueOnline TrueVisions True Group Service revenue Excl. IC and network rental 7, % QoQ +12.7% YoY Y 6, % QoQ +1.6% YoY Y 2, % QoQ +6.3% YoY Y 15, % QoQ +7.2% YoY Y EBITDA % QoQ 2, % QoQ % QoQ 3, % QoQ 41.2% YoY 0.2% YoY 18.7% YoY 13.5% YoY NIOGO excl. deferred tax (2,053) 311 (65) (1,794)

4 3G license strengthens True Group s portfolio 4 Real Future is a winning bidder in the 3G 2.1 GHz spectrum auction Leverage strengths of CAT s 850 MHz and 2.1 GHz spectrums Ready to move ahead with the rollout of 3G 2.1 GHz network

5 Long term debt level increases 5 Bt 1.4 bn of debt repaid in Q3 New borrowing of Bt 3.0 bn mainly to support TrueMove H service expansion True Group long term debt composition Bt bn H12 3Q12 Online Mobile Pay TV

6 True Mobile Group

7 3G+ supports revenue growth at True Mobile Group Service revenue grew QoQ, Q YoY Yfrom strong performance at TrueMove H driven by continued growth in non voice usage Subscriber acquisition i i activities i i and 3G+ service expansion costs softened EBITDA QoQ, YoY Normalized 3Q12 results True Mobile Group Baht (millions) TrueMove 3G & CDMA True Mobile Group Network rental revenue 128 1,379 1,507 Cellular service revenue 5,307 3,008 7, % QoQ +29.7% QoQ +1.2% QoQ 13.6% YoY % YoY +12.7% YoY EBITDA % QoQ 61.9% YoY (116) NA +67.6%YoY % QoQ 41.2% YoY NIOGO excl. deferred tax (1,193) (1,057) (2,053) 7 Subscribers million 2.6 million 20.3 million * Consolidation of Hutch performance under True Mobile Group started in Feb 11. True Mobile Group

8 8 Robust non voice growth driven by mobile Internet Non voice revenue growth continued to be impressive mainly due to rising mobile Internet usage which was driven by: Most extensive 3G+ coverage Attractive device bundling packages Rising adoption of smart devices and social networking Non voice service revenue Non voice revenue breakdown Bt mn +12.9%QoQ +65.9%YoY Bt mn 2,387 2,387 2,114 2,114 1,439 1,604 1, ,032 1,504 1,439 1,604 1, ,723 1,389 1,284 1,190 1, ,155 1, Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 2G 3G&CDMA Messaging Mobile Internet t Content t +14.8%QoQ %YoY * Elimination between 2G and 3G from the device bundling campaign started in 2Q12. True Mobile Group

9 True Mobile Group shines in the postpaid market 9 Continued to focus on high value postpaid subscribers Record postpaid net adds in Q3 Outperformed the market with rising postpaid market share TrueMobile postpaid subscribers TrueMobile postpaid revenue 23.5% 000 subscribers 24.2% 24.8% 26.4% 27.8% +10.4% QoQ +38.0% YoY 20.8% 20.9% 21.5% Bt mn 22.9% 24.1% +9.3% QoQ +37.1% YoY 1,711 1,814 1,927 2,139 2,361 2,566 2,755 2,882 3,220 3,518 Net adds ( 000) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Postpaid Sub Market share (Sub) Postpaid revenue Market share (revenue) True Mobile Group

10 TrueMove H continues to lead 3G+ service 10 TrueMove H reached 2.5 mn subscribers by 3Q12 The majority of which h are high value h postpaid subscribers 75% of subscribers came from outside of True Group TrueMobile postpaid ARPU Q11 4Q11 1Q12 2Q12 3Q12 TrueMove TrueMove H TrueMove H subscribers 000 subscribers ,119 2,029 1,268 2,545 1, Q11 4Q11 1Q12 2Q12 3Q12 Prepaid Postpaid True Mobile Group

11 New campaign facilitates subscribers acquisition 11 Leverage on our 3G+ service coverage Target entry level 3G+ users via Affordable 3G smart devices Innovative applications True Mobile Group

12 Strategic Outlook True Mobile Group 12 Key challenges Action Reap the benefit of the market s rising awareness in 3G Continue to launch attractive mobile packages with innovative applications and content through our nationwide service coverage 1800 MHz concession expiration in 2013 Cooperate with NBTC and take necessary steps in response to NBTC s clear guidance on the issue True Mobile Group

13 Strategic Outlook True Mobile Group (Cont d) 13 Targets & Key Initiatives Leverage nationwide service expansion and continue to launch competitive promotions to increase subscriber base Develop more innovative applications while also leveraging attractive/ exclusive content within True Group True Mobile Group

14 TrueOnline

15 TrueOnline reports solid QoQ EBITDA growth Service revenue grew mainly on strong growth in Broadband Internet revenue Decline in selling and marketing spending offset higher network operating expenses which resulted in improved EBITDA QoQ 15 TrueOnline service revenue Bt mn +2.5%QoQ +1.6%YoY 6,886 6,789 7,001 6,821 6,995 1,727 1,614 1,654 1,616 1,636 1,856 1,752 1,841 1,658 1,702 3,303 3,423 3,507 3,547 3,657 EBITDA and EBITDA margin 35.9% 30.8% 34.7% 32.8% 34.9% Bt mn +9.3%QoQ 0.2%YoY 2,586 2,571 2,217 2,362 2,581 3Q11 4Q11 1Q12 2Q12 3Q12 Traditional voice (fixed line, payphone, PCT) New revenue, convergence & others Internet, Broadband and Business data services 3Q11 4Q11 1Q12 2Q12 3Q12 EBITDA EBITDA margin

16 Broadband posts robust YoY revenue growth Consumer Broadband accelerated driven by the continued success of the ULTRA hi speed Internet package ( Mbps) TrueOnline maintained market leadership through ongoing network expansion 3.4 mn DSL and DOCSIS homepasses in 38 provinces 16 Broadband Internet revenue Bt mn 2,728 2,805 2,906 3, %QoQ +17.9%YoY 3,215 3Q11 4Q11 1Q12 2Q12 3Q12

17 DOCSIS 3.0 continues strong growth 17 Broadband leadership with 1.5 mn subscribers in 3Q12 DOCSIS 3.0 dominated quarterly net adds DOCISIS 3.0 facilitated triple play offerings with the launch of Combo set ( Mbps) This campaign supported higher ARPU Broadband d subscribers Bt/sub/mo subscribers 1,301 1,335 1,403 1,466 1, ,466 1,254 1,301 1,335 1,403 3Q11 4Q11 1Q12 2Q12 3Q12 Previous subs Quarterly net adds

18 Strategic Outlook TrueOnline 18 Key challenges Win over the Broadband market in UPC Increase DOCSIS 3.0 uptake Action Continue to expand coverage in UPC; proactive customer retention program; launch competitive offerings with new VAS Continue with localized marketing activities; enhance TrueOnline s brand awareness; improve sales channels

19 Strategic Outlook TrueOnline (Cont d) 19 Targets & Key Initiatives Strengthen Broadband leadership through competitive packages and excellent customer service On track to achieve full year target of 250K net adds while expanding Broadband coverage to 53 provinces by year end

20 TrueVisions

21 Advertising, AF9 support service revenue growth Service revenue grew QoQ, YoY from the popularity of AF9 and the Voice Thailand as well as strong growth in advertising revenue Advertising revenue rose mainly on AF9 and EPL EBITDA softened on higher marketing expenses and costs related to AF9 and sports content 21 Service revenue breakdown EBITDA and EBITDA margin +10.6%QoQ Bt mn + 6.3%YoY 2,624 2,469 2,418 2,469 2, ,993 1,987 1,973 1,969 1, % 19.7% 17.8% Bt mn % % 15.4% QoQ 18.7% YoY 442 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Subscription &i installation ti Others Advertising i EBITDA EBITDA margin

22 22 New broadcasting system drives premium subscriber Premium subscribers increased with strong quarterly net adds Gold subscribers started to pick up TrueVisions viewer base increased through partnership with satellite and cable TV operators PSI True TV drove strong product sales Subscribers & ARPU Product sales Bt/sub/mo subscribers 1,678 1,642 1,641 1,601 1, Premium 3Q11 4Q11 1Q12 2Q12 3Q12 net adds ( 000) Blended ARPU Free to air Freeview Standard (Knowledge) Premium (Platinum, Gold, Silver) Bt mn % QoQ +32.1% YoY Q11 4Q11 1Q12 2Q12 3Q12 99

23 Strategies in place to support future opportunities Customized packages were soft launched to match diverse lifestyles of customers Partnership with PSI facilitated penetration into the free to air market More opportunity to market our services through a larger viewer base Strengthened opportunity in the mass CMDU market through the redeployment of the swapped set top boxes 23

24 Strategic Outlook TrueVisions 24 Key challenges Continue momentum in the premium segment Intense competition in the mass market Action Increase awareness of our offering through more below the line activities; perform content marketing to PSI s viewer base Introduce more local content / yearround TV series and reality shows Targets & Key Initiatives Launch more lifestyle/ customized packages Launch new value added services

25 Looking Forward

26 Strategic Outlook True Group Maintain FY 2012 target of mid to high single digit revenue growth Strengthen our convergence platform: Continue to expand service coverage Launch more competitive convergence offerings Develop innovative applications and content Retain focus on customer service and retention initiatives Expand 2.1 GHz network to meet NBTC s requirement and to match market demand 26

27 Q&A