Non-deal Roadshow. Kim Siritaweechai SVP Portfolio Management 24 May 2012

Transcription

1 Non-deal Roadshow Kim Siritaweechai SVP Portfolio Management 24 May

2 Vision We are the leading value creation asset management company in telecom and media 2

3 INTOUCH Group Key Highlights Derives total shareholders return from our key investments and new business opportunities Be the leading value-creation asset management company in telecommunications, media, and other innovative technologies Not only focus on domestic telecommunication, but also diversity to new opportunity investments Expand from a telecommunications service provider to an enterprise of diversity without ignoring customers satisfaction and quality Be the telecommunications company to build strong bonds between Thais and life-enhancing technologies and be in touch with their world and their loved ones Uphold good corporate governance 3

4 Shareholding Structure of INTOUCH Group Mr. Surin Upatkoon 68.00% Mr. Pong Sarasin 1.27% Cypress Holdings Ltd. (Temasek Holdings) 29.9% Mr. Suphadej Poonpipat 0.82% Cypress Holdings Ltd. (Temasek Holdings) 48.99% The Siam Commercial Bank PLC 5.78% Kularb Keaw Co., Ltd % Aspen Holding (Temasek Holdings) 41.62% Cedar Holdings Ltd % Free float 20.39% Shin Corporation PLC 4 As of 26 January 2012

5 Investment Structure of INTOUCH Group Shin Corporation Plc 1), 2) 40.45% Advanced Info Service Plc 2) Thaicom Plc 2) 41.14% 52.92% ITV Plc 2) 98.55% 51.00% Digital Phone Co., Ltd. Advanced Datanetwork Communications Co., Ltd. DTV Service Co., Ltd % Shenington Investments Pte Ltd. 1) Artware Media Co., Ltd. Wireless Device Supply Co., Ltd. Advanced Contact Center Co., Ltd. Advanced MPAY Co., Ltd % CS LoxInfo Plc 2) Teleinfo Media Plc 100% 49.00% Mfone Co., Ltd. Lao Telecommunications Co., Ltd % Matchbox Co., Ltd. I.T. Applications and Services Co., Ltd. Advanced Magic Card Co., Ltd. AD Venture Plc 99.96% IPSTAR Co., Ltd. AIN GlobalComm Co., Ltd. Hunsa Dot Com Co., Ltd. 3) 100% IPSTAR Australia Pty Ltd. Super Broadband Network Co., Ltd. Advanced Wireless Network Co., Ltd. Mobile Broadband Business Co., Ltd % Watta Classifieds Co., Ltd. 100% 100% IPSTAR New Zealand Ltd. Star Nucleus Co., Ltd. Advanced Mobile Broadband Co., Ltd % Spacecode LLC 99.97% 5 MIMO Tech Co., Ltd. Fax Lite Co., Ltd. Advanced Internet Revolution Co., Ltd. 100% 100% IPSTAR International Pte. Ltd. IPSTAR Global Services Ltd. Advanced Broadband Network Co., Ltd. Cambodian DTV Network Ltd. 100% 99.97% 1) Holding company 2) Listed on SET Clearing House for Number Portability Co., Ltd. 3) On process of liquidation 20.00% 10.00% Bridge Mobile Pte. Ltd. As of 4 January ) Holding Company 2) Listed Company on the Stock Exchange of Thailand 3) On process of liquidation

6 Telecommunication Business 6

7 Advanced Info Service Thai mobile market overview AIS overview Saturated voice market with109% mobile penetration 90% of customers are prepaid users while postpaid is a non-contract and no handset subsidy. Despite limited 3G service, data revenue is growing considerably due to limited fixed-line infrastructure. AIS is the No.1 mobile operator in Thailand. 34mn subscribers, or 44% of subscriber market share 55% of revenue market share. 97% nationwide coverage AIS runs 900 MHz and 1800 MHz network under Build-Transfer-Operate contract (BTO), expiring in 2013 and 2015 Mainly provides 2G services with limited 3G coverage in Bangkok and 15 strategic cities. No.1 revenue market share DTAC 32% TRUE 13% Service revenue breakdown nonvoice 23% others 7% AIS 55% voice 70% 7

8 AIS 1Q12 Key Financial Highlights Financial Highlights (Bt million) 1Q11 4Q11 1Q12 %YoY %QoQ Guidance 2012 Service revenue ex.ic 23,788 25,869 26,593 12% 2.8% 5-6% Voice revenue 17,393 18,713 18, % 0.1% Non-voice revenue 4,514 5,451 5,973 32% 9.6% 25% Sales revenue 3,561 3,272 4,636 30% 42% 10%+ EBITDA 14,336 14,331 15, % 9.5% N/A Normalized net profit 6,654 6,886 8,926 34% 30% N/A Net profit 6,269 3,661 8,926 42% 144% N/A EBITDA margin 46% 43.2% 44.6% 140bps 140bps 44% Capex 809 1,991 1, % 9.3% 8,000 Free cash flow (EBITDA-CAPEX) 13,527 12,341 13, % 13% N/A 8

9 Growing data market Demand for data surged in term of both user and usage, despite the limited scale of 3G services AIS data subscribers (million/% of total subscribers) 27% 31% 21% 17% AIS smart device penetration (million/% of subscribers) 9% 10% % 13% AIS non-messaging revenue* (% to service revenue) 8% 11% 15% 17% FY09 FY10 FY11 1Q12 FY09 FY10 FY11 1Q12 FY09 FY10 FY11 1Q12 Data user jumped, particularly after launching 3G service in mid /5 of data users (2.2m) using 3G service Expect 50% of new sales to be smart devices, supporting by social networking trends and declining handset prices. data usage +170% YoY Smartphone ARPU approx. 2X of overall ARPU. *Non-messaging revenue = non-voice ( SMS + Ringback tone ) 9

10 Device and data pricing Wide range of quality smart devices No handset subsidy Capture both low-end users and tech savvy Low-ends smart phone starting from less than Bt4,000 ($133) Reasonable data pricing ZTE Racer II (Bt3,990, $133) Samsung Galaxy Y (Bt4,790, $160) Samsung Galaxy Tab 8.9 (Bt17,900 $560) Samsung Galaxy Note (Bt22,900, $763) iphone 4S (Bt22,450, $748) Apply fair usage policy with unlimited package Suitable data tariff volume base for 3G/EDGE+ time base for EDGE+ Daily buffet plan, starting from only Bt9 Volume base 3G/EDGE+ Daily Bt9 10MB Bt15 20MB Bt29 60MB Monthly Bt99 Bt150 Bt350 75MB 150MB 1GB 10 Time base EDGE+ Daily Bt49 unlimited Weekly Bt20 Bt30 Bt50 1 hr 2 hrs 5 hrs Bt49 Weekly Bt59 Bt79 Bt99 Unlimited (140MB) 70MB 180MB 300MB Bt550 Bt799 Bt899 2GB + WiFi Unlimited (3GB)+WiFi Unlimited (5GB)+WiFi

11 Empowered customer experience through Quality DNAs DEVICE NETWORK Customer Experience Provide wide range of quality devices Bundling with value package Tap the low-ends market with budgeted smart phone (<Bt4,000) APPLICATIONS Seamless network Most reliable voice quality Nationwide data coverage Strengthening 3G footprints in BKK and strategic areas with 3.5k BTSs SERVICE Serve digital lifestyles Join hands with partners to expand contents e.g. Bookstore, Musicstore Support both smart device and feature phone Establish experience shop Try & Buy smart devices 700 AIS Devices Experts Express data transfer tool

12 Satellite & Media Business 12

13 THCOM 1Q12 Key Financial Highlights Financial Highlights (Bt million) 1Q11 4Q11 1Q12 %YoY %QoQ Sales & Service revenues 1,570 1,854 1,907 21% 2.9% Gross profit % 5.3% Share of profit of associate (CSL) % 101% EBITDA % 1.4% EBIT (103) % 13% Normalized net profit (167) 46 83* 150% 80% Net profit (167) (314)** % 113% Gross margin 16.7% 27.3% 25.9% 920bps 140bps Normalized margin -10.6% 2.4% 4.3% 190bps Net margin -10.6% -16.2% 2.2% 13 * Excluding the Mfone impairment Bt41mn, ** After the effect of tax rate change Bt360mn

14 Sales & Services Revenues Healthy start to 2012 with net profit Unit: Btm EBIT Unit: Btm 21.5% 2.9% 1,862 1,968 1,854 1,907 1, % Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 (103) Net Profit Unit: Btm Normalized Profit Unit: Btm 125.4% 149.9% ** 41 1Q11 2Q11 (25) 3Q11 4Q11 1Q12 (167) 1Q11 2Q11 3Q11 4Q11 1Q12 (25) -314* (167) * After the effect of tax rate change Bt360mn ** Excluding the Mfone impairment Bt41mn

15 Conventional Satellite Business : Key Achievements Revenues continue to grow Conventional services revenue grew by 18% YoY in 1Q12 25 new channels added in 1Q12, confirming our Hot Bird position Total of 452 TV channels on TC-5 Continuing to see strong demand in the satellite TV market in Thailand

16 IPSTAR Satellite Business : Key Achievements Strong revenue growth IPSTAR bandwidth revenue grew by 61% YoY in 1Q12 Additional IPSTAR bandwidth contracts commence Realized bandwidth revenue from Japan s KDDI and NTT Docomo contracts Additional revenues as a result of new End-2-End Strategy Signed multimillion dollar agreement with Kantana Group (Thailand) for the Kantana Cineplex project to provide E2E services

17 THAICOM 6 & THAICOM 7 Satellite Programs on Track THAICOM 6 Preliminary Design Review (PDR) Critical Design Review (CDR) Satellite Pre-shipment Review Launch Campaign Activities Launch Readiness Review Satellite Launch In-orbit Acceptance Test THAICOM 7 Preliminary Design Review (PDR) Critical Design Review (CDR) Satellite Pre-shipment Review Launch Campaign Activities Launch Readiness Review Satellite Launch In-orbit Acceptance Test

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19 1Q12 Key Financial Statement (YoY) Financial Highlights Consolidated Separate (Bt million) 1Q11 1Q12 %YoY 1Q11 1Q12 %YoY Revenues from sales and services 1,819 2,120 17% Dividends income ,954 5, % Share of profit of associates 2,813 3,676 31% Total revenues 4,659 5,873 26% 4,963 5, % EBIT 2,549 3,692 45% 4,905 5, % Net Profit 2,441 3,514 44% 4,905 5, % Profit (loss) attributable to owners of the company 2,580 3,539 37% 4,905 5, % 19

20 INTOUCH Consolidated Net Profit YoY 20

21 1Q12 Key Financial Statement (QoQ) Financial Highlights Consolidated Separate (Bt million) 4Q11 1Q12 %QoQ 4Q11 1Q12 %QoQ Revenues from sales and services 2,462 2,120 14% Dividends income , % Gain from disposal partial of investment in associate 7,264 - N/A 7,499 - N/A Share of profit of associates 1,765 3, % Total revenues 11,615 5,873 49% 7,538 5,154 32% EBIT 9,093 3,692 59% 7,435 5,081 32% Net Profit 8,531 3,514 59% 7,435 5,081 32% Profit (loss) attributable to owners of the company 8,783 3,539 60% 7,435 5,081 32% 21

22 INTOUCH Consolidated Net Profit QoQ Remark : Excluded gain from disposal of AIS Bt7,264mn in 4Q11 22

23 Attractive dividend yield 30.00% 25.00% 24.6% 20.00% 15.00% 10.00% 5.00% 0.00% 15.4% 10.3% 10.8% 6.3% 3.8% 4.24% 6.57% 3.31% 3.65% 2.92% 3.72% SET Yield % Dividend Yield Source: SET and company data INTUCH showed dividend yield in 2011 of 10.8%, better than market yield of 3.72% Compare with market yield, INTUCH s dividend yield is better than market yield in every year 23 INTOUCH closing price on 10 February 2012

24 Price Performance & NAV 24

25 INTUCH Social Responsibility Activities in 1Q12 His Majesty the King s 84 th Birthday Celebrations, the True Happiness for the People Camp Sanook Kid with INTOUCH Exhibition INTOUCH boards visit Lanna Wisdom School in Chiang Mai province INTOUCH board congratulates THAICOM and CSL boards 25

26 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. 26