Investor update Q411 earnings conference call

Transcription

1 Investor update Q411 earnings conference call 19 th January 2012

2 Agenda Quick summary Henrik Clausen, CEO Financials Terje Borge, CFO Updates & Outlook Henrik Clausen, CEO Q&A

3 3 Q4 sustained top-line growth with record high margin & high net earnings sustained voice & data revenue growth on high Q3 base record high EBITDA margin & high net earnings 6.5 sen net /share 4 th interim dividend* * Dividend adjusted for 10-for-1 share split

4 4 Q4 & 2011 financial highlights +1.6% q-o-q revenue growth +10.3% full year 47.1% EBITDA margin 46.4% full year +34.9% q-o-q PAT improvement +6.5% full year RM420 mil OpCF RM2.2 bn full year

5 Steady growth in customer base added 303k new customers; 14k were new broadband customers still high rotational churn this quarter prepaid customers postpaid customers +3.3% growth in small screen users to 5.2 million this quarter on stricter definition # mobile internet customers mobile broadband customers *mobile internet & mobile broadband customers included in prepaid & postpaid customers respectively # stricter definition to exclude non-data revenue generating customers effective Q311

6 Higher competitive pressure in prepaid segment added 264k new prepaid customers of which 16k were new prepaid mobile broadband users prepaid net adds ( 000) increased usage not fully compensating for increasing price pressure; slight dilution in ARPU & ARPM MOU (mins) ARPU (RM) ARPM (sen/min)

7 Steady postpaid contributions added 39k new customers; all in core postpaid postpaid net adds ( 000) small loss of broadband customers due to higher churn ARPU improvement driven mainly by higher data usage MOU (mins) ARPU (RM) ARPM (sen/min)

8 service revenue (RM mil) other revenue (RM mil) * handset sales included in other revenue Sustained service revenue growth momentum +1.9% q-o-q service revenue growth o +5.0% data revenue growth o +0.6% voice revenue growth usage driver: smart bundles with in-demand smartphones/devices larger subscriber base festivities flattish q-o-q handset sales prevoice (RM mil) posvoice (RM mil) data revenue (RM mil)

9 9 Excellent data execution 23.2% 25.1% 27.2% 27.8% 29.4% 30.3% % q-o-q data revenue growth; mobile data now >30% of service revenues xxx messaging(rm mil) % of data / service revenue VAS (RM mil) mobile internet/broadband (RM mil) Internet for all proposition continues to drive mobile data usage; aided by: o new data-light & tablet plans o attractive device portfolio o streamlining & expansion of customer touch-points 20% of overall customers are smart-phone users

10 % 26.9% 27.1% 26.3% 25.8% 26.4% 30.9% 29.0% 27.9% 27.8% 27.8% 26.9% opex (% / rev) COS (% / rev) * numbers at the top refers to total cost for the respective quarters in RM million Good cost control less than 1% increase in Q4 costs versus +1.6% increase in revenues o o +3.8% q-o-q increase in COS -1.7% decline in OPEX increase in COS mainly driven by higher traffic cost (+5.9% q-o-q) 4.7% 3.7% 4.0% 3.7% 3.7% 3.7% 5.7% 5.4% 6.0% 5.3% 6.6% 5.1% 5.4% 5.0% 4.5% 4.2% 4.2% 4.4% 5.7% 5.6% 4.4% 5.4% 4.5% 5.0% 9.4% 9.4% 9.3% 9.4% 9.0% 9.3% 9.2% 9.0% 8.8% 9.2% 8.7% 8.8% lower q-o-q OPEX: o lower USO-related accruals able to off-set increases in other OPEX higher allowable cost deduction against qualifying revenue subjected to USO contribution S&M (% / rev) O&M(% / rev) staff (% / rev) USO & license fees (% / rev) others(% / rev)

11 % 45.7% 45.9% 45.8% 46.6% 47.1% Record high EBITDA margin +2.8% q-o-q improvement in EBITDA ppt rise in EBITDA margin EBITDA (RM mil) EBITDA margin (%) high Q4 PAT o due to lower prior & current year effective tax rates on approved tax incentives related to mobile broadband network facilities depreciation & amortisation charges in-line with guidance PAT (RM mil) dep & amort (RM mil)

12 Network updates % 21.6% 5.7% 5.1% 9.6% 19.9% as planned, significant increase in Q4 capex accelerated site roll-outs increased capacity CAPEX (RM mil) CAPEX / rev(%) network collaboration o wrapping up initial phase of site consolidation & moving on to next phase of further site consolidation o ramping up Phase 1 joint-fiber roll-out for aggregation & trunk o maintaining savings targets; exploring additional initiatives to increase savings operating cash-flow (RM mil) network modernisation o commenced physical RAN swap in Q4 o targeting RAN swap completion by end o partial capex roll-over to 2012

13 Balance Sheet/Shareholder updates completed 10-for-1 share split; RPS issued in Nov 2011 & due for redemption in Mar capital repayment special dividend quarterly dividend *all figures denote net dividend/share in sen and asjusted for 10-for-1 share split (RM mil) Q411 Q311 Q211 Q111 Interest-bearing debts , ,023.2 Cash & equivalents 1, , ,000.2 declared 4 th interim dividend of 6.5 sen net/share payable to all shareholders on 9 Mar 2012 ongoing assessment of viable longer-term capital management initiatives Payout ratio 128.2% 98.5% 98.7% 101.0% (RM mil) Total Return to Shareholder (TRS) 56.5% 12.0% 0.7% -12.1% ROE 88.9% 87.5% 65.8% 60.1% 2011 TRS based on simple share price appreciation)(source: Bloomberg)

14 14 Updates Regulatory o spectrum o access pricing

15 signed, sealed & delivered revenue growth : +10.3% EBITDA margin : 46.4% Capex: RM610 million OpCF: RM2.2 billion

16 opportunities & priorities defend strongholds and fully capitalize on mobile data opportunities build network capabilities to support mobile data growth explore further industry collaboration continue to leverage on Group scale & global initiatives optimising shareholder returns

17 17 Reiterating 2012 high level outlook mid-to-high single digit revenue growth sustained EBITDA & operating cash-flow margins capex RM700 million - RM750 million

18 Appendices

19 19 Financial year end key numbers Y-o-Y versus 2010 Customer base 9. 9 mil 8.8 mil +12.5% Revenue RM5,964 mil RM5,406 mil +10.3% EBITDA RM2,765 mil RM2,401 mil +15.2% EBITDA margin 46.4% 44.4% +2.0pp PAT RM1,254 mil RM1,178 mil +6.5% Operating cash-flow RM2,155 mil RM1,681 mil +28.2%

20 20 Financial year end key numbers Y-o-Y versus 2010 Prepaid ARPU RM43 RM46-6.5% Postpaid ARPU RM84 RM % Blended ARPU RM50 RM52-3.8% Prepaid Revenue RM4,011 mil RM3,803 mil +5.5% Postpaid Revenue RM1,608 mil RM1,397 mil +15.1% Data Revenue RM1,615 mil RM1,172 mil +37.8%

21 21 Blended MOU, ARPU & ARPM blended MOU (mins) blended ARPU (RM) blended ARPM (sen/min)

22 22 Reported P&L (RM mil) Q411 Q311 Q211 Q111 Q410 Q310 EBITDA Depreciation & Amortisation (337.3) (306.1) (323.8) (200.5) (193.3) (196.7) EBIT Net finance (costs)/income (1.0) (3.7) (22.8) (9.5) (9.8) (6.7) - finance costs (10.4) (9.7) (30.6) (15.4) (15.7) (12.9) - interest income PBT Taxation 4.9 (106.1) (89.0) (115.8) (118.2) (101.1) PAT *EPS (sen) EPS adjusted for completion of 10-for-1 share split in Nov 2011

23 23 COS & OPEX breakdown (RM mil) Q411 Q311 Q211 Q111 Q410 Q310 COS - cost of materials traffic charges OPEX - sales & marketing staff costs operations & maintenance other expenses USP fund and license fees credit loss allowances others TOTAL

24 24 Cash-flow (RM mil) Q411 Q311 Q211 Q111 Q410 Q310 Cash at start , , Cash-flow from operations Changes in working capital (193.1) (32.2) Cash-flow used in investing activities - Capex (296.4) (308.5) (140.0) (145.5) (63.3) (74.6) (74.2) (81.8) (222.4) (308.6) (178.8) (194.1) Cash-flow used in financing activities (287.6) (583.3) (337.5) (337.5) (413.4) (272.1) Net change in cash (28.6) (38.2) Cash at end 1, , , Operational cash-flow (EBITDA Capex)

25 Disclaimer This presentation and the following discussion may contain forward looking statements by DiGi.Com Berhad ( DiGi ) related to financial trends for future periods. Some of the statements contained in this presentation or arising from this discussion which are not of historical facts are statements of future expectations with respect to financial conditions, results of operations and businesses, and related plans and objectives. Such forward looking statements are based on DiGi s current views and assumptions including, but not limited to, prevailing economic and market conditions and currently available information. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and, should not be construed, as a representation as to future performance or achievements of DiGi. In particular, such statements should not be regarded as a forecast or projection of future performance of DiGi. It should be noted that the actual performance or achievements of DiGi may vary significantly from such statements.

26 thank you see you next quarter Further enquiries: Head of Investor Relations Audrey sfho@ digi.com.my