True Corporation Plc.

Transcription

1 True Corporation Plc. At a Glance May 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 True Group Thailand s convergence lifestyle leader 1 CP Group Public shareholders -Foreign 16.2% - Local 23.7% 60.1% 39.9% 100.0% 1/ 100.0% 2/ 100.0% 33.3% Mobile Group Pay TV Wireline/Online Wireline/online Telecom Infrastructure Fund 23.1 mn subs 24.6% subscriber market share 4G LTE 2100 MHz 3G+ 850, 2100 MHz 2G 1800 MHz (temporary measure) International call services: 006 (TDM), (VoIP) Thailand s leading nationwide pay TV provider 2.4 mn subs (88.6% DsTV; 11.4% cable TV) Enhanced, secure HD broadcasting system with MPEG-4 & secure silicon Fixed-line operator with 1.7 mn subs in Greater Bangkok area Broadband leadership with 1.9 mn broadband Internet subs via FTTx, DOCSIS 3.0 and xdsl Over 100,000 WiFi hotspots 37% broadband subscriber market share Thailand s first and only Telecom infrastructure fund The leading and most diverse portfolio of telecom infrastructure assets - 11,845 Telecom towers* - 1,037,545 core-km of FOC system* -1.2 mn ports HFC network for cable TV and broadband services Note: 1/ Holds 100.0% in Real Future Co., Ltd. and indirectly holds 99.4% in True Move Co., Ltd. and 99.5% in Real Move Co., Ltd. 2/ Indirectly holds 100.0% in True Visions Group Co., Ltd. (which holds 99.3% in True Visions PLC and 99.0% in True Visions Cable PLC) 3/ Market share and subscriber figures are as at March 31, 2014 (source: Company) 4/ Estimated shareholding h figures are as at March 18, 2014 * Transfer of the AWC towers and a call option for TRUEGIF to buy the assets from BFKT when AWC Leasing Agreement/ HSPA Leasing Agreement expires

3 Key strategic milestones Transformation from a fixed-line concessionaire to a quad-play operator : Launched cable TV service under UTV; merged with IBC in 1998 to form UBC 2003: Launched broadband services 2007: Launched the first bundled package True Life Freeview which offered popular convergence package of TrueMove and TrueVisions 2011: Completed Hutch acquisition; started rolling out commercial 3G services; launched DOCSIS 3.0 cable modem network 2013: Launched Thailand s first 4G LTE services; successfully launched Thailand s first Telecom infrastructure fund TRUEGIF ; acquired TV broadcasting service and network licenses 1991: Started fixed-line telephone service under a B-T-O concession with TOT (first 2 mn lines) 2002: TA Orange launched its cellular service under the Orange brand 2006: Completed UBC tender offer and rebranded as TrueVisions ; expanded pay TV services to mass market; introduced first public WiFi service 2009: First Thai operator to launch Apple s iphone 3G; offered 3G 850 MHz trial service 2012: Acquired the 2.1 GHz spectrum license; offered the fastest consumer broadband experience at 200 Mbps; activated the new broadcasting system (MPEG-4) 2014: Acquired license for two digital terrestrial TV channels

4 Liberalized Telecom industry, a new chapter for True Group True Group marks a new era by securing licenses in all core segments and launching Telecom infrastructure fund TRUEGIF, paving way for the Group s sustainable growth Ready to capture high growth potential in the liberalized Telecom industry Well positioned to benefit from rapid mobile and broadband network expansion Leverage on the Group s competitiveness in a level playing field industry Better returns on investment via improved cost and capital structure as well as economy of scale from TRUEGIF Extend the Group s businesses; mitigate regulatory risk post concession period 3

5 Thai telecom industry s competitive landscape 4 Industry regulator Wire-line license Television license NTC/NBTC Mobile license Temporary measure TUC TrueVisions Group TOT Real Future (TrueMove H brand) CAT TrueMove AIS s DPC Fixed-line concessions Mobile 2G concession Mobile 3G TOT s Thai Mobile Mobile 2G concession cess o Mobile 3G CAT Telecom True AIS DTAC Real Move (TrueMove H brand) BFKT TT&T Equipment lease and O&M Type-3 Broadcasting Concession Concession MVNO Type-3 telecom telecom TV service and /Reseller license network licenses Two digital terrestrial TV licenses license and 2.1 GHz IMT Spectrum License Concession MVNO /Reseller

6 Group long-term financial trends Bt bn Service Revenue '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 TrueOnline True Mobile TrueVisions *Segment results are presented before intersegment elimination EBITDA Bt bn (4.3) (1.6) (4.5) NIOGO 0.1 (1.2) (0.5) (1.4) (3.0) (3.8) (6.0) (5.4) (6.6) (13.1) '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 TrueOnline True Mobile TrueVisions Group EBITDA margin* 5 Bt bn % % 42% 40% % 33% 37% 35% 35% 33% % % 20% (1.9) (0.3) '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 TrueOnline True Mobile TrueVisions '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 TrueOnline True Mobile TrueVisions Group * on total revenue excluding IC and network rental revenue

7 1Q14 Highlights True Group achieved a big performance improvement, reporting net profit in 1Q14 Investment in TRUEGIF significantly strengthened the Group s financial performance TrueMove H s 3G/ 4G business posted robust growth, reaching its breakeven point TrueOnline s broadband d Internet continued healthy lh growth while hl expanding its network to cover 4.4 mn homepasses in 66 provinces TrueVisions acquired two digital terrestrial TV licenses, paving way for robust advertising growth

8 True Mobile shines in the non-voice& postpaid segments 7 True Mobile Group continued its solid growth in the non-voice and postpaid segments, mainly on rising mobile Internet usage Key strengths: TrueMove H s best 3G and 4G LTE services, attractive device-bundling packages, and innovative content and applications Thailand mobile non-voice market size* 17.9% 19.7% 19.3% 19.2% 12.8% 14.9% 13.5% 15.1% Thailand mobile postpaid market size* 20.3% 23.6% 26.5% 25.4% 28.7% 2% 14.1% 14.6% 12.2% 20,962 21,021 26,148 35,220 50,407 68,422 15,711 19, ,535 41,218 43,310 49,052 57,879 71,212 16,879 18, Non-voice market value % TrueMobile's market share Postpaid market value Source: Company s estimate % TrueMobile's market share * Consisting of TrueMove, TrueMove H, Hutch (CDMA service was officially shut down in April 13), AIS and DTAC

9 TrueMove H dominates mobile Internet arena 8 True Mobile Group s subscriber base increased to 23.1 mn by 1Q14 3G/4G business yielded solid growth with 13.6 mn subscribers under both 850 MHz and 2.1 GHz spectrums TrueMobile s cumulative subscribers 18, , ,876 23,088 21, ,653 9,536 18,157 18,037 12,223 18,297 13, , ,187 1Q13 1Q14 TrueMove H TrueMove Hutch

10 leads the broadband market 9 Offered the most competitive ULTRA hi-speed Internet packages ( Mbps) with attractive value-added services DOCSIS 3.0 and FTTx technologies enabled TrueOnline to offer the fastest consumer download speed of 200 Mbps Superior service quality and greater network coverage with 4.4 mn homepasses in 66 provinces Conducted localized marketing activities to raise awareness of TrueOnline s brand and competitive offerings

11 DOCSIS 3.0 facilitates subscriber growth Broadband leadership with 1.9 mn subscribers by 1Q14 Solid net adds, driven by successful expansion to new territories, competitive convergence campaign and localized marketing activities DOCSIS 3.0 facilitated real triple-play offerings with the launch of better-valued convergence packages SukX3, combining broadband Internet, mobile s voice and data usage as well as pay TV services through the same cable network 10 Broadband Subscribers & ARPU subscribers 1,810 1,570 1,624 1, ,026 1,175 1, ,570 1,570 1, ,026 1,175 1,335 Previous subs Net adds ARPU

12 penetrates into all market segments 11 A wide array of top international and local quality content Bt/sub/mo Subscribers & ARPU Exclusive partnership with world s leading 2,371 content providers 000 subs 2,042 1,663 1,705 1, Thailand s highest HD offering of 50 channels Customized and convergence packages to capture growth in the untapped segments Partnership with leading satellite and cable TV operators Attractive value-added services (i.e. TrueVisions Anywhere) 774 2,175 2, Premium (Platinum, Gold, Silver) Freeview Free-to-air box Standard (Knowledge) Blended ARPU

13 Advertising offers strong growth opportunities for 12 USD bn Advertising spending '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Source: AGB Nielsen TV Others TrueVisions is well placed to capture growth via its strong and fully-diversified platform The two digital terrestrial TV licenses pave way for accelerated advertising revenues while widening an opportunity to market its content

14 2014 targets & guidance 13 Enhance financial performance: High single-digit g service revenue growth at True Group Focus on cost control implementation Strengthen the Group s convergence platform: Competitive convergence campaigns A wide array of devices for all segments Innovative and exclusive content and applications Strong distribution, direct salesforce and localized marketing Excellent services and special privileges

15 1Q14 results

16 Financial highlights 1Q14 (Units in millions of Baht unless otherw ise indicated) TrueOnline 1/ True Mobile 1/ TrueVisions 1/ m Consolidated Total Revenue (excl IC & network rental) 6,372 13,318 2,396 20,556 % growth Q-o-Q 2.5% -10.6% -11.1% -8.0% % growth Y-o-Y -17.1% 5.7% -10.7% -1.2% Service Revenue 2/ 6,340 9,276 2,395 16,491 %growthqoq Q-o-Q 29% 2.9% 17% 1.7% -10.2% -0.1% 01% % growth Y-o-Y -13.6% 9.1% -9.7% 0.8% EBITDA 2,008 2, ,742 % growth Q-o-Q -0.4% 179.4% -1.4% 41.9% % growth Y-o-Y -24.4% 62.0% -39.8% 0.2% Interest expense (684) (595) (215) (1,493) % growth Q-o-Q 10.3% -46.7% -10.4% -24.4% % growth Y-o-Y 10.3% -44.7% -2.2% -18.8% Tax, net (230) growth Q-o-Q Q 418 (242) growth Y-o-Y 30 (642) (129) (747) 15 NIOGO 3/ 5, (309) 4,584 growth Q-o-Q 5,103 2, ,705 growth Y-o-Y oy 4,867 2,088 (214) 6,574 NIOGO excl. deferred tax 5,264 (364) (407) 4,288 growth Q-o-Q 5,385 2, ,768 growth Y-o-Y 4,895 1,449 (320) 5,852 Free Cash Flow (4,462) (3,518) (1,802) (10,247) growth Q-o-Q (19,454) 7,537 (1,068) (15,708) growth Y-o-Y (2,804) (2,323) (1,125) (6,881) Capex 2,263 3, ,039 growth Q-o-Q (714) (1,309) (13) (2,272) growth Y-o-Y Y (415) 2, ,657 1/ Before eliminating inter-company transactions; 2/ Revenue from telephone and other services excluding IC revenue and network rental revenue 3/ NIOGO: Net income (loss) from ongoing operations

17 True Mobile Group sustains strong revenue growth Service revenue & market share 15.0% 14.1% 14.8% 15.4% 16.0% 15.4% 16.7% 23,575 23,284 27,249 31,184 35,211 8,500 9,276 Service revenue % revenue market share NIOGO (624) (1,314) (1,814) (364) (1,411) (2,258) 258) (4,811) (6,550) (2,069) (6,173) (7,308) (9,973) (10,999) NIOGO excl. deferred income tax NIOGO EBITDA & EBITDA margin Capex 27.7% 24.0% 15.1% 10.8% 9.6% 13.2% 20.2% 7,226 6,233 4,974 4,852 4,910 2,637 3,429 8,643 15,954 12, ,659 2,687 Net IC (32) +181 (98) (1,182) (1,210) (415) (227) TrueMobile EBITDA EBITDA margin 2,762 3,667 2, ,736 (1,470) (3,979) Cash flow from operations Capex %FY10 %FY11 %FY12 %FY13 %YoY Service revenue -1.2% +17.0% +14.4% +12.9% +9.1% EBITDA -13.7% -20.2% -2.4% +1.2% +62.0%

18 Postpaid continues its solid momentum True Mobile subscribers & market share 24.6% 24.5% 24.8% 25.3% 25.0% 25.3% 24.6% 3,162 2,619 3,327 17,118 18,940 20,972 22,876 21,528 23, subs 15,801 1,226 1,313 1,814 2,559 Prepaid vs. postpaid subscribers 88% 86% Postpaid 14,575 15,805 17,127 18,414 19,715 18,909 19,760 Prepaid 12% 14% 17 Net adds +1,044 +1,317 +1,822 +2,032 +1, ( 000) Prepaid Postpaid % market share 1Q13 1Q14 True Mobile postpaid revenue True Mobile prepaid revenue 18, ,195 13,664 14,194 14,439 14,947 13,385 9,210 2,052 9,973 2,030 2,334 3,437 5,599 4,253 5,807 6,332 2,980 5, ,082 1,503 4,284 13,143 12,164 12,105 4,725 4,829 6,993 8,065 9,671 11,511 3,470 3,457 2,064 2,651 9, ,184 2,220 2,753 2,509 2,273 Voice Non-voice Voice Non-voice

19 Broadband Internet fuels TrueOnline s growth Service revenue NIOGO 26,387 26,043 26,876 28,126 5,264 28,658 6,517 6,217 5,080 8,564 7,538 6,812 10,573 11,532 13,021 14,336 16,183 7,342 6,340 1,586 7,250 6,973 7,043 7,274 6,259 4,010 1,451 1,746 4, Convergence & others 1Q13 1Q14 Broadband & other Internet services Traditional voice (fixed-line, payphone, PCT) EBITDA & EBITDA margin ,144 1, (101) NIOGO excl. deferred income tax NIOGO Free cash flow % 36.5% 35.5% 33.7% 34.5% 34.6% 31.5% 22,728 9,804 9,751 9,973 10,089 10,243 2,678 8,695 5,392 5,104 6,256 11,212 2,263 9,011 2,657 2,008 2,551 3,397 3,087 1,020 (2,199) EBITDA EBITDA margin Cash flow from operations Capex %FY10 %FY11 %FY12 %FY13 %YoY Service revenue -1.2% +17.0% +14.4% +12.9% +9.1% EBITDA -13.7% -20.2% -2.4% +1.2% +62.0%

20 DOCSIS boosts strong broadband performance 8,531 Broadband revenue 14,377 12,258 10,659 9,262 3,516 4,017 Broadband customers & ARPU Bt/sub/mo subs 1,026 1,175 1,335 1,570 1,810 1,624 1, Nationwide Broadband market share Broadband customer Blended ARPU Subscriber by speed* TOT 32% 3BB Others 9% 3% By no. of subs Source: NBTC (as of 3Q13) True 37% 61% < 10Mbps 10Mbps 27% 12% > 10Mbps 1Q14 *Connection speed for the standard package (Bt599/month) was upgraded from 7 Mbps to 10 Mbps in Oct.1,12 12 %FY10 %FY11 %FY12 %FY13 %YoY Broadband revenue +8.6% +15.1% +15.0% +17.3% +14.3% Broadband subscribers +14.6% +13.6% +17.6% +15.3% +15.1%

21 Performance softens on weak economy Service revenues 10,463 10,728 9,533 9,585 9, ,562 1,746 8,549 8,334 8,131 8,032 8,048 2, , ,164 1, , NIOGO 37 (4) (87) (852) (95) (309) (1,081) (407) 20 Subscription & installation Others Advertising EBITDA & EBITDA margin NIOGO excl. deferred income tax NIOGO Free cash flow 27.0% 23.7% 22.7% 18.4% 13.4% 17.8% 12.0% 2,078 2, % 1,520 2,088 2, , ,236 1,430 1,966 1,862 1, (381) (821) (968) EBITDA EBITDA margin w/o TVS extra item Note: 2009 includes the reversal of over-accrued content-related costs (Bt207mn) Cash flow from operations Capex %FY10 %FY11 %FY12 %FY13 %YoY Service revenue +0.5% +0.9% +8.2% +2.5% -9.7% EBITDA -11.5% -3.7% -12.1% -25.8% -39.8%