Non-Deal Roadshow Hong Kong

Transcription

1 Non-Deal Roadshow Hong Kong Thanachart Securities February 2019 INTOUCHHoldings

2 INTOUCH Shareholding and Investment Structure As of 17 Aug 2018 Singtel 21% HSBC 15.9% Aspen Holdings 3.19% Others 59.91% 1) 1) 1) 40.45% 41.13% 99.99% 1) 1) 1) 51% 1) Listed Company on the Stock Exchange of Thailand 2

3 2019 INTOUCH Direction To be Thailand Leading TMT Group Asset Management Create and protect the value of existing business Continue pass-through dividend Improve revenue sources and cost efficiency Mitigate business risks New Growth Build new growth for INTOUCH Group Build new growth at INTOUCH through New businesses VC portfolio Support growth of existing subsidiaries Holding of Excellence Human capital Innovation Reputation Governance Sustainable Development 3

4 2018 INTOUCH Performance Healthy dividend payment Unit : Baht per Share H18 DPS 2018 DPS Dividend Payout Bt1.17 Bt2.71 Pass through Maintain pass through dividend policy with dividend received from associated and subsidiaries after deducting holding operating expenses XD on 21 Feb 2019 and payment date on 24 Apr 2019 Unit : Million Baht 11,771 11, ,673 11,491 Normalized net profit was stable YoY despite lower profit contributed from AIS INTOUCH Norm. Profit AIS THCOM INTOUCH & Others * *Others = ITAS, ITV, VC, and Intouch Media 2018 INTOUCH Norm. Profit 2017 Net Profit 2018 Net Profit Normalized net profit excl. gain on sale of CSL and assets impairment of THAICOM Net profit increased by 8% YoY mainly from gain on sale of CSL and lower asset impairment of THAICOM. 4

5 2018 AIS Key Performance Maintained net profit Core service revenue (Btmn) 128, ,429 EBITDA (Btmn) 70,498 73,792 Net Profit (Btmn) 30,077 29,682 Mobile revenue +1.3% YoY. FBB revenue +42% YoY. Other service revenues +77%. EBITDA grew by 4.7% YoY due to revenue growth and cost control. EBITDA margin (ex.cl TOT) improved to 45.2% from 44.7%. Net profit decreased 1.3% YoY due to higher D&A. Net profit margin was lower from 19.1% to 17.5%. Interest-bearing debt (Btmn) Net debt to EBITDA (times) DPS (Bt) 109, , Slightly lower debt outstanding in spite of continued investment. Healthier debt ratio due to stronger EBITDA Paid 71% dividend payout ratio. 5

6 Mobile: Subscribers grew amidst withdrawal of fixedspeed unlimited offerings Revenue grew mildly due to fixed-speed unlimited Strongly gained 1mn subscribers Mobile revenue (Btbn) +1.1% YoY +1.6% QoQ % YoY G Penetration on total base 46% 50% 54% 57% 59% Q17 3Q18 4Q18 Focused on marketing effectiveness Net subscriber addition ( 000) Prepaid Postpaid Q17 1Q18 2Q18 3Q18 4Q18 % marketing spending & handset loss to revenue 6.9% 6.2% 4Q18 subscriber mix Postpaid, 20% FY18 Mobile revenue mix Postpaid, 43% FY17 FY18 Lowered marketing expense following the focus on quality acquisition and retention Prepaid, 80% Prepaid, 57% Postpaid growth continued supported by demand for 4G and handset subsidies. 6

7 FBB: Maintained healthy growth in subscriber take-up YoY growth remained strong Focused on quality acquisition Fixed broadband revenue (Bt mn) ,013 1,094 1,117 1,212 ARPU (Bt/month) 3, % YoY 4,436 Beginning subscriber ( 000) 4Q17 1Q18 2Q18 3Q18 4Q Net addition ( 000) Maintained strong revenue growth but softened ARPU following price competition FBB revenue proportion grew to 3.6% of core service revenue, up from 2.9% in 4Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Gained 209k subscribers in 2018 or around 20% (est.) of industry subscriber addition Emphasized FMC offerings Expanded coverage Bt699 Bt799 Bt999 *Throttled speed: 128kbps Power4 Maxx PACKAGE 50/20Mbps 100/50Mbps 200/100Mbps Max speed mobile SIM 5GB* 10GB* 20GB* Of 731k subscribers Non-FMC, 78% FMC, 22% Leverage FMC, differentiating from pure broadband operators Ready to serve 7mn home passed with coverage in 57 cities 7

8 Digital service: continued building blocks of digital services Explored Cloud/ICT solutions to enhance new growth Video platform: building up subscriptions Completed strategic alignments in product and sales leveraging each company s strength & 2mn active users (Dec-18) Available on both mobile and FBB Bt5/day package Revenue contribution 90% 10% Others 28% Airtime & EDS 72% Enterprise revenue breakdown Revenue from enterprise, including mobile airtime, stood at 10% of core service revenue Gained market share in EDS while building scale in Cloud & ICT solutions AIS PLAY Mobile e-wallet: continued strong take-up (mn users) PLAYBOX Feb-18 Dec-18 AIS started investment Offered bite-sized daily packages while continued building awareness Active Registered, but not active Expanded use case to transportation 8

9 2019 Outlook Mobile Maintain leadership and stay competitive to retain scale FBB Focus on FMC to win homes Digital Service New strategic offerings in both consumer and enterprise Revenue Market Share Trend 49.6% 48.3% 47.5% 26.6% 23.8% 26.4% 28.7% 25.2% 23.8% M18 Retain business scale in both subscriber and revenue Optimize and digitize operation Mobile FBB 2019 target: 1mn subscribers Move to ARPH (average revenue per household) Consumer: Leverage and enhance customer base via partner platform Mobile wallet Game Insurance Video Enterprise: Integrated services of Telecom-ICT-Digital ICT services Cloud DC/ICT Solutions Telco services Products Mobile Data network Digital service s IoT Cyber security 9

10 2018 THAICOM Key Performance Improved norm. profit Sale & service revenue (Btmn) 6,689 6,008 Sale and service revenue decreased by 10% YoY due to intense competition. EBITDA (Btmn) 2,610 2,201 EBITDA decreased 16% YoY following lower revenue. Normalized Profit (Btmn) Normalized profit improved from cost management as well as lower depreciation and amortization. Satellite revenue (Btmn) Satellite EBITDA (Btmn) Satellite utilization rate 6,475 5,850 2,576 2,183 Conventional Broadband 59% 59% 26% 30% Satellite revenue decreased by 10% YoY due to the slowdown of industry. Satellite EBITDA decreased by 15% YoY following lower revenue. EBITDA margin decreased to 37% from 40%. Stable broadcasting utilization rate. Increased broadband utilization rate from new customers. 10

11 Satellite Fleet De-orbited In-orbited THAICOM 1A THAICOM 2 THAICOM 3 THAICOM 4 De-orbited: De-orbited: De-orbited: (IPSTAR) THAICOM 5 THAICOM 6 THAICOM 7 THAICOM 8 Scheme Operating Concession License Type of Satellite Broadband Conventional Conventional Fee 22.5% 4.00% Contract Life (Yr) 30 yr (2021) 20 yr (2032) Useful Life (Yr)

12 2018 Commercial Highlights Broadcast Services Thailand s TRUE VISIONS: signed a long-term contract on TC-8 to strengthen broadcast services in Thailand Myanmar s Canal Plus: signed contract to extend Myanmar s DTH platform until Aug 2021 Acquired TelOne, new African telecom customer in Zimbabwe to provide rural broadband services in Africa Signed agreement with UAE s Mediavision for video platform on TC-6 over Sub-Saharan Africa Broadband Services Philippines We are IT Philippines (WIT), signed bulk bandwidth agreement for the whole TC-4 capacity Signed bandwidth agreement and hardware contracts for Thailand s USO project THAICOM offered 1,600 Digital Life set top boxes, to support distance learning in a smart classroom model in accordance with government s Thailand 4.0 policy Japan s KDDI, signed amendment contract for additional bandwidth on TC-4 Provide mobility services for Australia s Spirit of Tasmania cruise ships Telecom Services LTC entered into Sale and Purchase Agreement to acquire 500,000 shares or 100% of Vimpelcom Company Limited, one of Lao s mobile operator under the brand BEELINE, from the government of Lao PDR. This acquisition will significantly enhance LTC network efficiency and expand its target market, especially young generations. 12

13 2019 Key Framework Satellite Business Partnership Model Selling existing capacity partnership model Increase utilization of the existing satellites Thailand s PPP process (Public Private Partnership) THAICOM is open to join with strategic partnership in Thailand for this scheme International consortium for HTS Adjacent Professional Services Bangladesh satellite program China s TCSTAR-1 program NAVA Expand in Gulf of Thailand Expand to South China sea Australia End to End Solutions and managed services for NBN Maritime and Movie Solution services New Business Capture government projects to serve Thailand 4.0 Identify in 2019 the prototyping of potential business among AI, Fintech, Blockchain, Drone and Robotic Remarks: HTS = High Throughput Satellite 13

14 Satellite Business Roadmap Concession end 2021 Life end 2022 Concession end 2021 Life end 2020 Concession end 2021 Life end 2032 License end 2032 Life end 2032 License end 2032 Life end 2032 Operate under Thai Regulation Life extension for TC-4 & TC-5 PPP for satellites under concession (TC-4, TC-5, and TC-6) with competitive advantage: 27 years experience of satellite service provider Effective cost structure management Strategic Partner Operate TC-7 & TC-8 under license scheme Explore partnerships Consortium Based Asian HTS at another orbital slot Explore Resell Model; Rent/Revenue Share Model Explore Global GEO & LEO Satellite Partnership Explore Global VHTS/HTS/LEO Resell; Rent/Revenue share Model Remarks: PPP = Thai Government's Public Private Partnership (PPP) scheme HTS = High Throughput Satellite, VHTS = Very High Throughput Satellite, LEO = Low Earth Orbit 14

15 Strong growth of revenue supported by viewer base expansion strategy Unit: Million Baht Moving Forward Expected more than Bt1bn revenue Sales channel strategy and business partnerships: Explore new opportunities with platform providers and channel TV operators High margin products: Sourcing high margin products and product differentiation such as fashionwear and health & beauty products 2016 Revenue Avg. daily sale 15

16 2018 InVent Portfolio Highlights Maintain leadership in exploring and investing for growth Unit : Million Baht Portfolio Value 63 Monetized 2018 Increased Investment & Distribution More than 1 billion Baht total revenue End of Investment Investment value: Bt30mn Investment value: Bt40mn Investment value: Bt40mn End-to-End digital marketing Acquired FCB Bangkok to leverage offline market Launched Jamjaras - upcountry digital marketing CRM & POS platform for SMEs 1,400 active merchants Launched CRM for brand to expand corporate customer segment Smart city platform for B2B & B2C o B2C includes living, transportation and retail o B2B includes location-based information system and map 16

17 2018 INTOUCH New Business Highlights Explored emerging technology for INTOUCH new business opportunity Strategic growth enabler for INTOUCH subsidiaries Investment theme: Emerging tech AI Digital Ads Data Analytics Video Analytics/ Image recognition Chatbot Machine learning AR/VR ads Digital marketing DOOH Business intelligence Credit scoring IoT Blockchain Others Industrial drones E-Health E-Logistics Smart contract E-Sport and gaming Cyber security 17

18 INTOUCH Investor Relations Website: Facebook: Tel: (66)