Advanced Information Technology PCL 3Q13 & 9M13 Performance Review at Opportunity Day, organized by The Stock Exchange of Thailand Disclaimer: The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forwardlooking statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected.
Agenda Company Overview Financial Highlights Development Update Increase Capital 2
Agenda Company Overview Financial Highlights Development Update Increase Capital 3
Business at Glance AIT is a leading systems integrator and ICT solution provider in Thailand, supplying ICT products and applications with repair & maintenance services to private and public sectors. AIT specializes in bringing ICT components and subsystems together to make its customers businesses more efficient and productive. AIT s businesses cover ICT solution services, support and maintenance services, and training services. Over 90% of AIT s FY2012 revenues is project-based, achieving through bidding process and direct sales. With its goal to be the complete strategic partner for our customers, AIT has established core ICT capabilities in all verticals with 7 service centers nationwide to ensure a standardized project support quality throughout the country. AIT continuously achieves outstanding financial and operating performance through superior services and human capital excellence. 4
Supportive Business Core Business Our Businesses 1 ICT Solution Service and Product Sales System integration and ICT solution services Design the solution the best suit the customers Integration of IT components hardware and software application and sub-systems Ensuring system functionality Network Optimization Business Application IT Security Solution Services Data Center Core Network Unified Communication Video Solution Wireless 2 3 4 Support & Maintenance Services Operation Management Services Training Services Multi-faceted support and maintenance services customarily designed to meet customers requirement Spare part logistics Remote & online monitoring Incident management Etc. Day-to-day ICT operational management service IT infrastructure management Network infrastructure management IT security management VoIP Communication management CISCO certified technical training services to enhance knowledge and skills of customers IT people AIT CISCO Certified Training Center (ACCTC) Customers on-site training Etc. 5
ICT Solution Services Key Suppliers (Business Alliances) Hardware System Software Application Software Network Computer Printer Scanner Microsoft UNIX Databases Enterprise Resource Planning (ERP) Billing System Geographic Information System Wireless Data Center Core networking Security Voice Video System Integration and Solution Process Understand customers needs Design and identify solutions Install products and implement the system Support and maintenance Customer Training 6
Company Development Awards & Reconitions Milestones 1992 Established 2003 Listed on the Stock Exchange of Thailand 2006 AIT became appointed as CISCO Certified Gold Partner 2009 SET Award for Best Company Performance Award for companies with less than Bt. 10 billion market capital 2010 Achieved a total revenues of over Bt. 4 billion 2010 & 2011 Asia s 200 Best Under A Billion Award from Forbes Asia Magazine 2012 Set up a JV operation with Loxley Wireless Co., Ltd. to drive IT business services for AEC countries 2011 Outstanding CEO Award by SET 2013 Acquired 51% in Kirz Co., Ltd., an internet and telecommunication services provider 7
Nationwide Support Centers Headquartered in Bangkok, our nationwide support network in 7 locations allows us to deliver a standardized project support quality throughout the country as well as implement and maintain even the largest installations. Chiangmai Khon Kean Pitsanulok Headquarter - Bangkok Nakorn Ratchasima Sriracha Suratthani Hat Yai 8
Well-Balanced Clientele Base Total Revenues (Bt. Mil) 3,325 3,877 4,579 39% 4,835 33% 4,188 46% Private & other state enterprises Others 43% 39% 24% 37% 61% 14% 24% 38% 23% 26% 41% 20% 34% Fixed Line & Network Provider TOT 25% CAT 32% Mobile & Wireless Provider 2008 2009 2010 2011 2012 5-year Average Total Revenues by Clientele Base CAT TOT Private and other state enterprise Note: Percentage based on total revenues. 9
Key Focus Sectors Telecom Sector Finance & Insurance Sector Public Sector Private Sector 10
Sources of Revenues Turnkey projects 88% Services 10% ICT Services Yearly basis services Support & maintenance ICT Operation management Training services End-to-end ICT Solution Average 3 to 9 months implementation System integration and ICT solutions, including design, installation & implementation, optimization, and repair & maintenance Rental 2% Equipment Rental 1 to 5 years rental services Computer hardware and ICT equipment rental service Note: Percentage based on 2012 revenue from sales excluding other income. 11
Agenda Company Overview Financial Highlights Development Update Increase Capital 12
5-Year Financial Highlights Total Revenue (THB. Mil) 3,325 3,877 4,579 4,835 4,188 4,304 2008 2009 2010 2011 2012 9M'13 Total Revenue Net Profit (THB. Mil) 6.3% 209 8.1% 8.3% 312 381 9.1% 8.8% 439 368 9.4% 407 2008 2009 2010 2011 2012 9M'13 Net profit Net profit margin 13
Total Revenues by Customer Annual Revenues (THB. Mil) Quarterly Revenues (THB. Mil) +32% YoY 4,579 4,835 4,188 4,304 % of Total Revenue 1,421-19% QoQ 1,536 1,532 1,236 28% 8% 954 877 938 34% 9% 64% 57% 2010 2011 2012 9M13 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 CAT TOT Private & other state enterprise 14
Sales by Sources Annual Sales (THB. Mil) Quarterly Sales (THB. Mil) +32% YoY 4,553 4,801 4,140 4,270 % of Sales Revenue 10% 1% 1,404-19% QoQ 1,531 1,512 1,227 11% 953 851 932 2% 89% 91% 2010 2011 2012 9M'13 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q13 Project Sale Rental Service Note: Excludes other income. 15
Gross Profit Annual GP (THB.mil) and GPM (%) Quarterly GP (THB.mil) and GPM (%) +47% YoY -13% QoQ 21.0% 956 25.0% 24.0% 23.0% 1,149 954 752 23.7% 21.7% 23.2% 23.3% 25.4% 24.1% 25.9% 388 364 327 317 226 216 185 2010 2011 2012 9M'13 Gross profit 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Gross profit margin 3Q13 16
Net Profit Annual NP (THB.mil) and NPM (%) Quarterly NP (THB.mil) and NPM (%) +21% YoY -28% QoQ 8.3% 381 9.1% 8.8% 439 368 9.4% 407 9.6% 8.9% 9.5% 7.7% 9.6% 9.8% 8.8% 148 150 92 77 89 109 108 2010 2011 2012 9M'13 Net profit 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Net profit margin 3Q13 17
Profitability Analysis Return on Asset (%) Return on Equity (%) 17.6% 17.1% 18.0% 11.4% 13.9% 13.0% 33.8% 33.5% 25.8% 38.5% 37.0% 36.0% SETICT SETICT 2010 2011 2012 1Q13 2Q13 3Q13 2010 2011 2012 1Q13 2Q13 3Q13 18
Capital Structure Interest -bearing debts Bt.859 mill /1 Total debt (Bt.mil) and D/E ratio (x) Long-term 8% 0.94 0.97 1.53 2.01 3,236 1.69 1.69 2,743 2,706 Shortterm 92% 2,227 1,164 1,346 2010 2011 2012 1Q13 2Q13 3Q13 Total debt (Bt. Mil) D/E (x) Note: 1. As of 3Q 13. 100% of the interest-bearing debts are under fixed interest rate. 19
2013 2014 Backlog Revenues (THB. Mil) 9,000 8,000 Secured Estimated 7,000 6,000 5,000 350 759 4,000 3,000 2,000 4,731 1,000 0 Total backlog 2013-2014 onwards as of Nov 7, 2013 Waiting for P/O Under bidding process Source: Company estimates as of Nov7, 2013. 20
Market Opportunities: 2014 onwards Local market value: Bt. 9.9 THB bil State enterprise 36% Telecommunications 52% Private enterprises 14% AIT s unrivalled advantages Strong relationship with customers Strong strategic partners and business alliances (suppliers) Proven track record in providing credible system integration services Highly skilled ICT personnel and specialized experts Source: Company estimates as of Nov 7, 2013. 21
Stock Information and Dividends Dividend policy is not less than 40% of normal net profit 78% 68% 75% 76% 74% 3.52 2.75 5.18 3.50 6.01 4.50 6.57 5.00 5.41 4.00 4.34 40% 1.75 2008 2009 2010 2011 2012 1H13 EPS (Bt./share) DPS (Bt./share) Dividend payout (%) Share information Par value: Bt. 5.00 Stock price: Bt. 84.00 per share Listed share: 68.77 mil. shares P/E 11.20 Times Market capitalization: Bt. 5,776.99 mil P/BV 3.71 Times Foreign limited: 25.00% Dividend yield: 4.74% Source: www.set.or.th as of Nov 19, 2013 22
Stock Information P/E Ratio (times) P/BV Ratio (times) 10.44 11.2 8.43 7.06 3.03 3.71 5.71 2.65 2.54 3.86 1.59 0.83 2008 2009 2010 2011 2012 Sep'13 2008 2009 2010 2011 2012 Sep'13 Source: www.set.or.th as of Nov 19, 2013 23
Agenda Company Overview Financial Highlights Development Update Increase Capital 24
What We Believe 1 2 Extensive Customer Base Stable Financial Performance Enlarge customer base to enhance business stability Retain existing customer base state and private enterprises Expand customer base to private corporations Integration & Solution revenues and net profit Services Increase competitive advantages 3 4 Strong Business Partners Partner with the best to ensure high level of customer satisfaction Strengthen relationship with business alliances Establish partnerships with new alliances Business Expansion Corporate Objectives Maximize customer satisfaction Maintain sustainable growth in Operational Excellence Penetrate into non-project based ICT business for stable revenue stream Expand service base to diversify source of income Increase recurring income Capable Human Capital Our skilled people are key assets, ensuring service excellence Establish AIT Training Unit focusing on people development Retain talent people Promote corporate values and core competency 25
The Acquisition of KIRZ About Kirz Kirz was founded in 1995 and has been the forefront in providing internet based and telecommunication services in Thailand The company provides premium business grade internet solutions such as Fiber Optic Leased Lines, VOIP, IPTV, Video Conferencing, Cloud Server, Data Center for both public and private clients It currently operates one of the few and largest Data Centers in Thailand KIRZ is fully accredited and licensed by the National Broadcasting Telecommunications Commission (NBTC) Deal Information AIT acquired 51% of the total paid-up capital for Bt. 51,000,000 Share purchase agreement on 4 April 2013 Benefits Customer base expansion Expand the company s existing customer base consisting mainly of government institutions and state-owned enterprises to include more small and mid-size companies and other large organizations Utilize Kirz s existing network Kirz s customers span across almost every industry in Thailand, posing great opportunities for AIT to market its products and services through Kirz s existing channels Highly experienced human resources With additional IT expertise and professionals, AIT will be better equip to serve its customers needs more completely 26
Agenda Company Overview Financial Highlights Development Update Increase Capital 27
Paid up capital and Net profit ( THB mm ) Total Revenue ( THB mm ) Increase Capital Potential Growth 1,000 6,000 900 800 700 600 500 400 300 200 100 10-year CAGR = 10.38% 3,877 3,325 2,278 1,722 1,647 1,363 1,018 312 300 300 303 200 200 200 200 197 211 117 94 75 68 4,579 331 381 4,835 4,188 4,304 439 407 368 337 344 344 5,000 4,000 3,000 2,000 1,000 0-1,000-2,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M2013 Paid up Capital (THB mm) Net profit (THB mm) Total Revenue (THB mm) -3,000 28
Increase Capital Plan Objective to support the future growth Strengthening the capital base Investing in service businesses in Thailand Cloud Service Data Center Transmission Digital Media High Speed Internet Investing in new potential project to capture business growth opportunity from the AEC 29
Thank you Advanced Information Technology Public Company Limited 37/2 Suthisarnvinijchai Road, Samsaennok, Huay Kwang, Bangkok, 10320 Tel: +662-275-9400 Fax: +662-275-9100 Website: www.ait.co.th For further information and enquiries, please contact our Investor Relations Department at: Sarin Chandranipapongse Investor Relations Tel: +662-275-9400 #1103 Email: ir@ait.co.th 30