Opportunity Day 2Q13 INTOUCH Performance

Transcription

1 Opportunity Day 2Q13 INTOUCH Performance 19 Aug 2013 Stock Exchange of Thailand (SET) 1

2 EIGHT BREAKTHROUGH MISSIONS - Digital TV: To update regulatory, prepare bidding strategy and budget - Venture Capital: To identify players under Telecom, Media, IT, and Digital Content and proactively approach the potential VC candidates - Digital Contents: To capture the rapid growth of digital content demand arising from the development of telecom technology - 3G 2.1GHz: Launched in May 13, providing better data experience for customers - 4G LTE technology: To capture the growing demand for mobile data usage - Wired Broadband: To provide an integrated services to customers - Thaicom Satellites: Several new satellites in pipeline: TC-6 in 4Q13 and TC-7 in 1Q14 - Cloud Computing: To engage consultant on the study of cloud market and the business model best fit to INTOUCH Group potential 2 Prepared by Group Investor Relations

3 INTOUCH Group Consolidated Profit 2Q13 2Q13 Consolidated Net Profit - YoY Unit : Baht million +6% YoY 3,470 3,676 2Q12 AIS THCOM INTOUCH, ITV, MB, ITAS 2Q13 Consolidated Net Profit - QoQ 2Q13 Unit : Baht million % QoQ 4,025 3,676 1Q13 AIS THCOM INTOUCH, ITV, MB, ITAS 2Q13 3

4 Normalized Profit Contribution : H13 THCOM turned to generate positive profit contribution 4

5 Historical Dividend Payment : H13 Maintain dividend payout ratio at around 100% * *Dividend payment from the period of 1 Jan 28 Mar 2013 only INTOUCH announced Bt2.37 dividend per share for the period of 29 Mar 12 Aug 2013 The XD date will be on 22 Aug 2013 and the dividend payment will be on 10 Sep

6 Telecommunication Business 6

7 AIS 2Q13&1H13 Key Financial Highlights Financial Highlights (Bt million) 2Q12 1Q13 2Q13 %YoY %QoQ 1H12 1H13 YoY Service revenue ex.ic 26,656 28,451 28, % 1.3% 53,248 56, % 2G revenue* 25,490 27,025 24, % 9.5% 50,818 51, % 3G revenue** - - 2,307 n.a. n.a. - 2,307 n.a. Sales revenue 3,971 5,152 4, % 18% 8,607 9, % EBITDA 15,152 16,293 15, % 3.3% 30,846 32, % Net profit 8,713 9,923 9, % 7.3% 17,639 19, % EBITDA margin 44% 43.5% 43.7% 0.3% 0.2% 44.3% 43.6% 0.7% Capex 1,669 5,976 5, % 0.3% 3,474 11, % Free cash flow (EBITDA- CAPEX) 13,483 10,317 9,759 28% 5.4% 27,372 20,075 27% *2G refers to 900 & 1800MHz operation under Build-Transfer-Operate contract **3G refers to 2100MHz operation under license issued by NBTC 7

8 3G-2.1GHz subscribers reached 3.9mn Net adds ( 000) ARPU* (Bt/sub/month) Postpaid 2G 3G G 3G Postpaid Prepaid +426 Prepaid MOU* Postpaid Prepaid 2G 3G (minutes/sub/month) AIS recorded 3.9mn of 3G-2.1GHz user, representing 10% of total 37.7mn users. Net addition increased 548k during the quarter. The reduction in 2G subscribers reflected successful migration to the new 3G 2.1GHz. We witnessed the migration of high ARPU customers to the new 3G network. In 2Q13, 3G ARPU was 19% higher than 2G ARPU for postpaid segment and 13% higher for prepaid segment. However, the blended MOU declined YoY as customer became more data centric. 8 *ARPU and MOU is restated due to the change in definition

9 Expanding demand for mobile data Non-voice revenue The 3G-2.1GHz service was launched in May-13, providing better data experience for customers. Nonvoice revenue improved driven by strong mobile data despite a slowdown SMS growth, reflecting SMS-data cannibalization. *Non-voice services = SMS+Ringback tone+enterprise+mobile data+others Non-voice revenue grew by 27% YoY from 1H12. Data growth indicators Data subscriber (million subscriber) Mobile data usage Non-messaging revenue* (% to service revenue ex.ic) +17% YoY +63% YoY % 22.9% *Non-messaging services = Total non-voice (SMS+ Ringback tone) 9

10 Bringing the better data experience with 3G-2.1GHz services In May-13, the new 3G-2.1GHz service was launched in 20 key cities and expanded to >60 cities in Jun-13. To encourage customer migration to the new network, we launched several marketing activities and improved distribution channels e.g. promoting new AIS 3G brand ambassador, offering +15% additional value on packages, bundling AIS 3G combo package with house branded handsets, and expanding AIS 3G centers. We witnessed strong customer take up for 3G-2.1GHz with 3.9mn users in 2Q13, representing 10% of total subscriber base. James Jirayu, Richer digital lifestyle applications e.g. James Ji Live, English Premier League on mobile, AIS 3G brand ambassador GMMz on AIS. 3G-2.1GHz progress 77 provinces 70% population coverage Target 10-12mn subs AIS was officially granted 2x15MHz of 2.1GHz spectrum license 3G-2.1GHz commercial launch in 20 cities 800k subs 60 provinces 3.9mn subs 10 Dec 12 7 May 13 2Q13 4Q13

11 Encourage 3G devices penetration among mid to low end customers No handset subsidy Objective: Increase variety of affordable 3G smartphones and feature phones Approach: Bring the best-in-class house branded devices bundled with value package Target: Mid- to low-end customers AIS 3G Super Combo Quality device ZTE F286 Acer Liquid Z3 i-mobile i-style 7.3A Affordable price Bt1,290 Bt2,590 Bt3,990 Bundled package Free call bonus of Bt1,200 Bt300 monthly bonus for 10 months Bt400 monthly bonus for 10 months For high-end customers, we offer bundled package with other international branded devices e.g. Samsung, iphone, HTC. 11

12 Satellite & Media Business 12

13 THCOM 2Q13&1H13 Key Financial Highlights Financial Highlights (Bt million) 2Q12 1Q13 2Q13 %YoY %QoQ 1H12 1H13 YoY Sales & Service revenues 1,808 1,774 1, % 1.1% 3,590 3, % Gross profit % 9.0% 1,299 1,465 13% EBITDA % 17% 1,764 1, % EBIT % 39% % Normalized net profit % 50% % Net profit % 42% % EBITDA margin 51.2% 45.7% 52.8% 1.6% 7.1% 49.1% 49.3% 0.2% Normalized margin 13.9% 21.5% 10.6% 3.3% 11% 11.5% 16% 4.5% Net margin 6.4% 18.6% 10.6% 4.2% 8% 4.4% 14.6% 10% 13

14 Strong Growth in Normalized Net Profit (excl.fx) Unit: Baht Million CAGR = 35.9% Period: 3Q12-2Q * * * Excluded extraordinary items 3Q12 4Q12 1Q13 2Q13 14

15 Key Highlights of 2Q13 Additional IPSTAR bandwidth sales Australia s NBN and Malaysia s Measat continued to increase bandwidth usage beyond contractual commitment Signed additional bandwidth agreement with Indonesian and Indian broadcasters Additional revenue from system integration and equipment sales Recognized revenue from Japan s SBM, Malaysia s Measat and Thai broadcasters Committed bandwidth utilization Thaicom 4 (IPSTAR) reaches 54% Thaicom 6 reaches 66% (total capacity of 64% on SEA beam is fully reserved) Acquired interim capacity ahead of Thaicom 6 To serve the bandwidth requirements of our customers To realize additional revenues before the launch of Thaicom 6 15

16 CSL 2Q13&1H13 Key Financial Highlights Financial Highlights (Bt million) 2Q12 1Q13 2Q13 %YoY %QoQ 1H12 1H13 YoY Sales & Service revenues % 4% 1,390 1, % Gross profit % 2.1% % EBITDA % 6.1% % EBIT % 8.2% % Normalized net profit % 7.3% % Net profit % 22% % Gross margin 45.6% 45.3% 42.7% 2.9% 2.6% 44% 44% Normalized margin 13.9% 16.4% 14.7% 0.8% 1.7% 14.5% 15.6% 1.1% 16

17 Consolidated Revenue Contribution 2Q12 = Bt710mn 1Q13 = Bt748mn 2Q13 = Bt775mn Consolidated Normalized Profit Contribution 2Q12 = Bt99mn (Directories -Bt21mn, Classifieds -Bt2mn) 1Q13 = Bt123mn (Directories -Bt6mn) 2Q13 = Bt114mn (Directories -Bt12mn) Remark: 17 CSL already had disposed an investment in Watta (Classifieds Business) since Oct 2012

18 2Q13 Mobile Content Business Maintain existing subscribers and increase revenue by developing more product offerings Launched new smart phone applications - Kid Painting - Tracing Kid - Jigsaw Quiz - Horoscope compass - D.I.Y Stickers 18

19 Disclaimer Some statements made in this presentation are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as may, will, expect, anticipate, intend, estimate, continue plan or other similar words. The statements are based on our management s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements. INTOUCH INVESTOR RELATIONS ir-intouch@intouchcompany.com TEL

20 Q & A 20