Opportunity Day 28 February 2012

Transcription

1 Opportunity Day 28 February

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

3 INTOUCH Group Key Highlights Expand from a telecommunications service provider to an enterprise of diversity and increase to focus on customer satisfaction and quality Be the leading value-creation asset management company in telecommunications, media, and other innovative technologies Be the communications company that people can always rely on and keep in touch with their world and their loved ones. Uphold good corporate governance Not only focus on domestic telecommunication, but also open to new opportunity investments Create total shareholder return, which drives by AIS and THCOM 3

4 INTOUCH Group Key Highlights Wireless Communications Satellite & Inter. Business Media & Advertising Matchbox Co., Ltd. The largest mobile operator with 33.5 million subscribers Regional network provider Thaicom 5-25 C-band and 14 Kuband transponders IPSTAR broadband satellite in 13 countries International business LTC No.1 operator with 1.31 million mobile subscribers Mfone No.3 operator with 0.46 million mobile subscribers DTV has 1.17 million subscribers ITV Plc 4

5 INTOUCH Group Key Highlights 40.45% holding 41.14% holding Subsidiary of THCOM Subsidiary of THCOM Subsidiary of THCOM Service revenue ex.ic growth 12% YoY to Bt97,911mn, driven by Voice revenue growth of 8% YoY to Bt71,429mn Non-voice revenue growth of 31% YoY to Bt19,736mn. EBITDA growth by 10% YoY to Bt56,623mn Normalized net profit growth by 21% YoY to Bt26,600mn Revenue from sale of goods and rendering of service growth 8% YoY to Bt7,254mn, driven by 38% IPSTAR business growth EBITDA growth by 46% YoY to Bt2,861mn Normalized net loss improved from loss of Bt806mn to loss of Bt130mn Revenue from telephone service was Bt1,167mn, dropped by 20% YoY due to a price war and the intense competition. The number of Mfone s subscribers declined to 0.46mn in 2011 from 0.72mn in 2010 and LTC subscribers also dropped from 1.66mn in 2010 to 1.31mn in Total revenue from CSL grew by 5% YoY to Bt2,841mn, driven by revenue from ICT and revenue from voice & mobile content services. EBITDA growth by 11% YoY to Bt733mn. Normalized net profit growth by 6% YoY to Bt395mn. Accumulated DTV sales volume was 1.17mn sets, increased by 24% from 0.95mn set in

6 Telecommunication Business 10

7 AIS 2011 Key Financial Highlights Financial Highlights (Bt million) %YoY Service revenue ex.ic 87,516 97,911 12% Non-voice 15,040 19,736 31% Sales revenue 9,349 13,180 41% EBITDA 51,721 56, % Normalized net profit 22,074* 26,600** 20.5% Net profit 20,514 22, % Service margin 49.0%*** 48.6% 40bps EBITDA margin 46.5% 44.8% 167bps Free cash flow (EBITDA-CAPEX) 46,897 50, % Capex 4,823 5,707 18% *excluding impairment of DPC good will Bt1.56bn **excluding impairment of DPC good will Bt1.54bn and adjustment of deferred tax asset Bt2.8bn ***excluding one-time network related item in 2Q10 12

8 Revenues by segment Voice revenue Bt million Non-voice revenue Bt million IR revenue Bt million +8.3% yoy +31% yoy -6% yoy strong footprint in Bangkok & regional market Localized price plans rising importance of mobile internet in customers daily life strengthen seamless data network decreasing trend of revenue from foreign roaming due to global price pressure despite expanding traffic and tourists. IDD&Others revenue Bt million Net sales Bt million Net IC Bt million +10% yoy +1.2% yoy -25% yoy 13 larger IDD subs base and usage from successful marketing campaign. growing demand for smart devices expansion of non-smartphone in new emergent market net IC receipts continued on a declining trend retroactive net receipts from HUTCH-CAT recorded in 3Q10

9 Data demand continued to increase Non-voice revenue *Non-voice services = SMS+Ringback tone+enterprise+mobile data+others We witness a continual growth in data. After launching 3G on 900MHz in mid 2011, 3G subscribers grew strongly, reaching 1.2mn and driving total data users to 9mn. Mobile data continued to be the key growth driver and grew strongly both in terms of usage and user. This was due to social networking trends data device adoption Data growth indicators Data subscriber (million subscriber) Mobile data revenue (Bt million) +39% YoY +71% YoY Non-messaging revenue* (% to service revenue ex.ic) 11.3% 14.6% *Non-messeging services = Total non-voice (SMS+ Ringback tone) 14

10 Deliver impressive customer experience through quality CUSTOMER EXPERIENCE Device Network Application Service 1,884 bts nationwide 70k hotspots wide range of quality devices bundling with customized package seamless mobile internet experience through 3G+WiFi+EDGE+ enhanced localized apps customized apps exclusive contents ~700 device experts, various privileges for AIS customers 15

11 Satellite & Media Business 16

12 THCOM 2011 Key Financial Highlights Financial Highlights (Bt million) %YoY Sales & Service revenues 6,700 7, % Gross Profit 849 1, % EBITDA 1,963 2, % EBIT (624) 253 Normalized net profit (806) (130)* 83.9% Net Profit (806) (490) 39.2% * excluding adjustment of deferred tax asset Bt360mn Significant Improvement 17

13 Turn to positive net profit in the 2 nd half of 2011 Satellite Financial Highlights Sales & Services Revenues 8.3% 7.8% 12.2% -5.8% 6,700 7, % 1,652 1,968 1, % 18 Q4/10 Q3/11 Q4/11 Y2010 Y2011 Normalized Net Profit 2 Consecutive Profitable Quarters 6, % ,652 1,968 1,854 7, % Q4/10 Q3/11 Q4/11 Y2010 Y2011 Significant Improvement Satellite Revenue Breakdown Conventional Satellite Services 4Q10 3Q11 4Q IPSTAR IPSTAR Services IPSTAR Sales Total

14 IPSTAR Satellite Business Strong Momentum Strong revenue growth Strong IPSTAR sales & services revenue growth of 38.4% YoY Big IPSTAR bandwidth contracts commences Fully realized bandwidth revenue from the Australian NBN and Malaysian MEASAT deals in 4Q Additional revenues from Japan Recognized additional bandwidth revenue from a major Telco in Japan Strong gateway and user terminal sales Received revenue from gateway sales in Malaysia Signed contract with BayCity of New Zealand for 4,000 UT sales within 2012 (increase user base by 40%) 19 Secured bandwidth contracts worth ~100 MUSD for 2012 An increase of ~15% from 2011 s revenues Continued demand and new end-2-end solutions will further enhance growth in 2012

15 IPSTAR Satellite Business Key Markets China Obtained China Telecom Satellite s agreement to directly market to end users Under discussion with a potential strategic partner for bulk bandwidth sales Demand coming from critical government projects will drive utilization India Continuing growth in demand from BSNL for backhaul and corporate segments Under discussion with a major Telco for bandwidth Australia Provide End-to-End solutions as a qualified Access Seeker Expand to the corporate market to increase bandwidth utilization Indonesia & The Philippines Working with big Telcos for potential bulk bandwidth sales similar to the SBM deal 20

16 Conventional Satellite Business Key Achievements Hot Bird strategy on the right track Total of 427 TV channels on TC-5 70 new channels added in 2011 THAICOM 5 secured bandwidth contracts worth ~USD80mn for 2012 Equivalent to Conventional satellite services revenue in 2011 THAICOM 6 focus on quality of service and efficiency Pre-launch sales of TC-6 services Deploy HDTV on TC-5 to stimulate demand for TC-6 THAICOM 7 to provide future growth Successfully cooperated with AsiaSat to preserve the 120 E orbital slot Started to develop TC-7 satellite project to provide services at the orbital slot in

17 CSL 2011 Key Financial Highlights Financial Highlights (Bt million) %YoY Revenue 2,701 2, % Gross Profit 1,235 1, % EBITDA % EBIT % Normalized net profit 373* 395** 5.9% Net Profit % Gross Margin 46.1% 46.3% 20bps Normalized Margin 13.8% 13.9% 10bps 22 * Include one time gain (net) Bt23mn (gain from deferred tax asset from ADV Bt36mn & terminated cost (TMC) Bt13mn) ** Include one time loss Bt60mn (Impairment loss WATTA Bt37mn & effect of tax rate change Bt23mn)

18 Revenue contribution by segment Btm 3% 5% Consolidated revenue trend continued to grow due to growth from ISP and Mobile Content Business can offset a decline from Directories & Classifieds Business 23

19 YellowPages Business Direction For Printed products, focus on core products to maintain revenue from advertising Launched 1 st phase of TMC s e-commerce project in 4Q11 Totally redesign Provincial Book to create synergy and bundling with online product to enhance value to advertisers Soft launch Print & Online bundle & E-Commerce package in Provincial Canvass Product & market test Maintain customer base Leverage Print to Online Increase advertising revenue Prepare to enhance online service by developing electronics & mobile commerce solution to offer a fully integrated online solution starting in 2Q12 25

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21 2011 Key Financial Statement Financial Highlights Consolidated Separate (Bt million) %YoY %YoY Revenues from sales and services 7,967 8, % Dividends income ,908 10,268 53% Gain from disposal partial of investment in associate - 7,264 N/A - 7,499 N/A Share of profit of associates 9,196 10, % Total revenues 17,328 26, % 21,937 17,823 19% EBIT 7,914 17, % 21,653 17,532 19% Net Profit 7,540 16, % 21,651 17,530 19% Profit (loss) attributable to owners of the company 8,016 16, % 21,651 17,530 19% 27

22 Attractive dividend yield INTUCH announced an interim dividend payment for 11 August 25 December 2011 operation at Bt2.34/share. In 2012, INTUCH announced interim dividend payment for 1 Jan 29 Mar 2012 operation at Bt1.58/share. XD date is 4 Apr 2012 and payment date is 26 Apr INTOUCH closing price on 10 February 2012

23 INTOUCH Consolidated Net Profit 30

24 Jan-07 May-07 Sep-07 Feb-08 Jun-08 Oct-08 Mar-09 Jul-09 Dec-09 Apr-10 Sep-10 Jan-11 Jun-11 Oct-11 Price Performance & NAV Bt Market Price NAV 32

25 INTUCH Social Responsibility Activities in 2011 Thai Literature Conservation Contest Camp Sanook Kid with INTOUCH Flood donation 33

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. 34