Analys Analy t s Con Con er f ence 2013

Transcription

1 Analyst Conference 2013 Analyst Conference 2013 March 7, 2014 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 2013 strategic highlights 2 True Group reported healthy service revenue growth, driven by rising revenues in all core segments Mobile non voice revenue sustained robust growth Excellent response to convergence campaigns fueled broadband d and Pay TV acquisitions TrueVisions i won the bidding for two digital i terrestrial TV licenses, paving way for accelerated advertising growth Li i i d TRUEGIF k d i t t il t f Licensing regime and TRUEGIF marked important milestones for True Group and Thai Telecommunications industry

3 Group revenue continues solid growth Group service revenue grew on continued growth in all core business segments, mainly mobile s non voice services EBITDA slightly softened mainly from costs related to 2G migration, network expansion and marketing activities 3 Bt mn Service revenue 16,409 16,356 16,359 17,069 16,508 2,999 2,653 2,756 2,653 2,665 7,309 7,342 7,477 7,679 6,160 8,312 8,500 8,475 9,118 9,118 Bt mn +7.2%YoY EBITDA 2.1%YoY 61,865 66,291 10,728 16,738 16,385 10,463 28,126 28,658 1,966 1,458 4,742 4,731 4,337 3, ,343 10,089 10, ,574 2, ,725 31,184 35,211 2,845 2,016 1,649 1,659 1,243 1, ,852 4,910 4Q12 1Q13 2Q13 3Q13 4Q True Mobile TrueOnline TrueVisions 4Q12 1Q13 2Q13 3Q13 4Q True Mobile TrueOnline TrueVisions

4 a new chapter for True and industry 4 Successfully listed on SET on December 27 Transaction value Bt 58.1 bn Key benefits: Leverage reduction, strengthening capital structure Economy of scale Well position to propel alongside industry s expansion Net gain recognition of Bt 6.3 bn in 4Q13 Amount proceed 58, Less: Advance received (for 6,000 towers) (16,390.56) Cash proceed, net advance received 41, Less: Costs of assets sale and relevant costs (30,570.44) Less: Fund related expenses (1,437.17) Total gain from assets sale 9, Less: Unrealised gain from assets sale (3,346.93) Gain recognised in ,334.90

5 True Mobile Group

6 TrueMobile sustains robust YoY revenue growth 6 Service revenue increased due to continued strong momentum of non voice services Non voice surged on accelerated mobile Internet growth Service revenue Non voice revenue breakdown Bt mn 8,312 8,500 8,475 9,118 9,118 2,765 3,025 3,178 3,591 3,669 4,841 4,729 4,565 4,792 4, %YoY 31,184 35,211 9,035 13,463 19,57618, Q12 1Q13 2Q13 3Q13 4Q Voice Non voice 3% 39.4% 40.3% 38.2% 33.3% 35.6% 37.5% 29.0% Bt mn +49.0%YoY 13,463 1,723 9,035 3,591 3,669 2,765 3,025 3, , ,975 6, ,938 3,113 2,133 2,363 2, %YoY6%YoY Q12 1Q13 2Q13 3Q13 4Q Messaging Mobile Internet Content % of service revenue True Mobile Group

7 TrueMove H shines, a brighter future for TrueMobile Normalized 2013 results True Mobile Group 7 Baht (millions) 2G 3G & CDMA True Mobile Group Network rental revenue 33 7,410 8,082 Service revenue 14,507 23,535 35, % YoY % YoY +12.9% YoY EBITDA 45 4,805 4,910 N.M % YoY +1.2% YoY NIOGO (11,107) (1,714) (12,737) Normalized 4Q13 results True Mobile Group Baht (millions) 2G 3G & CDMA True Mobile Group Network rental revenue Service revenue 39 1, % QoQ/ 61.7% YoY EBITDA (862) N.M./N.M. 3,192 7, % QoQ/+97.9% YoY 1, % QoQ/+113.5% YoY 3,467 9, % QoQ/+9.7% YoY % QoQ/ 41.7% YoY NIOGO (4,605) (322) (4,682) True Mobile Group

8 Subscribers on 3G business continues to expand 8 True Mobile Group s subscriber base increased to 22.9 mn by the end of mn subscribers migrated to 3G business both under 850 MHz and 2100 MHz TrueMobile s cumulative subscribers & blended ARPU B/ Bt/sub/mo subscribers 20,972 21,528 22,087 22,394 22,876 20, ,653 13,675 18,037 18,297 18,223 18,037 22,876 10,653 8,719 12,223 12,223 2,889 3,187 3,865 2,889 Net adds 4Q12 1Q13 2Q13 3Q13 4Q ( 000) ,032 +1,904 TrueMove H TrueMove Hutch True Mobile Group

9 TrueOnline

10 Broadband Internet underpins FY revenue growth Service revenue reached Bt 28.7 bn, driven by continued solid growth of broadband Internet EBITDA grew on rising revenue and improved cost management despite impact from the new licensing structure 10 TrueOnline service revenue EBITDA and EBITDA margin Bt mn +1.9%YoY 28,126 28, %YoY 7,309 7,342 7,477 7,679 6,517 6,217 1,611 1,586 1,533 1,512 6,160 Bt mn 10,089 10,243 7,274 6,259 2,073 1,746 1,865 2,001 1, ,336 3,625 4,010 4,080 4,167 3,927 16,183 2,574 2,657 2,725 2,845 2,016 4Q12 1Q13 2Q13 3Q13 4Q Traditional voice (fixed line, payphone, PCT) New revenue, convergence & others Internet, Broadband and Business data services 4Q12 1Q13 2Q13 3Q13 4Q

11 FY13 broadband revenue, net adds accelerate 11 Successful DOCSIS 3.0 expansion fueled broadband Internet revenue and net adds, driven by Superior network and service quality High value convergence packages localized marketing activities Broadband Internet revenue* +17.3%YoY Broadband subscribers and ARPU* Bt/sub/mo Bt mn 12,258 14, subscribers 1,570 1,624 1,680 1,749 1, , , ,142 3,504 3,597 3,613 3,663 1,521 1,570 1,624 1,680 1,749 1,335 1,570 4Q12 1Q13 2Q13 3Q13 4Q Q12 1Q13 2Q13 3Q13 4Q Previous subs Quarterly net adds * In 4Q13, TrueOnline changed accounting policy in reporting revenue from bundled packages. As such, broadband Internet revenue and ARPU for 1Q13 3Q13 were normalized to reflect this change.

12 TrueVisions

13 Sponsorship, advertising boost FY revenue growth FY13 service revenue grew on rising revenues from sponsorship, mainly the Voice programs, and advertising EBITDA softened on incremental expenses related to content and marketing activities 13 Service revenue breakdown EBITDA Bt mn 2, ,653 2,756 2,653 2, ,157 2,164 2,091 1,953 1, %YoY 10,463 10, ,562 1,746 8,032 8,048 Bt mn , %YoY 1,458 4Q12 1Q13 2Q13 3Q13 4Q Subscription & installation Others Advertising 4Q12 1Q13 2Q13 3Q13 4Q

14 TrueVisions is well placed to capture future growth 14 Fully diversified portfolio with a wide range of quality content t Subscribers & ARPU Thailand s best and highest HD offering of 50 channels Competitive convergence& lifestyle packages Attractive value added services TrueVisions Anywhere, 3D service Two digital terrestrial TV licenses to facilitate advertising growth opportunities Bt/sub/mo ,042 2,175 2,274 2,368 2,371 2, , Q12 1Q13 2Q13 3Q13 4Q Premium (Platinum, Gold, Silver) Standard (Knowledge) Freeview Free to air box Blended ARPU

15 Looking Forward

16 2014, EBITDA harvesting year 16 Significantly strengthen financial performance through High single digit service revenue growth Cost cutting efforts, targeting g10% reduction in opex Selling and Marketing spending Core opex Regulatory cost Cash capex: Bt 26.5 bn

17 2014 Strategies 17 Strong distribution and localized marketing Competitive convergence campaigns A wide array of devices and set-top boxes for all segments Direct Salesforce capacity Innovative and exclusive content and applications Excellent services and Special privileges

18 Q&A