Shin Corporation Plc.

Transcription

1 Shin Corporation Plc. Opportunity Day Aug 17, 2011 The Leader of Telecommunication and Media in Thailand Opportunity day May 18, 11

2 INTOUCH Group Performance Assets Stake Performance (2Q11) 42.5% 41.1% Subsidiary of THCOM Subsidiary of THCOM Subsidiary of THCOM 2Q11 service revenue excl. IC grew by 12.5% YoY to Bt23.9bn. Voice usage overcame seasonal effect by 0.6% growth QoQ. Non-voice revenue was a key driver, representing 29% YoY growth. EBITDA was Bt14bn, raised by 11.3% YoY or EBITDA margin was at 44.9%, lower than 47.3% in 2Q10. Net income was Bt6.1bn, raised 25.6% YoY while normalized net profit was Bt6.5bn, an increased of 24.6% YoY. Revenue from sale of goods and rendering of services in 2Q11 was Bt1.86bn, up by 13.1% YoY. It is mainly from 35.1% YoY increased in IPSTAR sales and service revenue. In 2Q11 THCOM reported an EBITDA of Bt700mn, grew by 32.1% YoY from Bt530mn. Net loss in this quarter was Bt25mn, improved from loss of Bt155mn in 2Q10, thanks to cost control efficiency. Revenue from telephone services in 2Q11 was Bt274mn, declined by 27% YoY. It is mainly due to a price war and severe competition in both Cambodia and Laos markets. The number of Mfone s subscribers declined to 0.55mn from 0.7mn in 1Q11 and LTC subscribers also dropped from 1.63mn in 1Q11 to 1.57mn in this quarter. CSL reported a normalized profit in 2Q11 of Bt108mn, an increase of 15% YoY. This is mainly due to the growth of revenue from Internet Business, cost management, and efficiency in SG&A control. EBITDA increased 14% YoY to Bt196mn owning to revenue growth and cost control. CSL announced to pay interim dividend of Bt0.27 per share from the operation of 1H11. As at the end of 2Q11, accumulated DTV sales volume was 1.07mn sets, up from 1.0mn sets in 1Q11 and 721,315 sets in 2Q10. Currently, there are 82 TV and radio channels broadcasted through DTV in Thailand.

3 Telecommunication Business

4 AIS 2Q11 & 1H11 Financial Highlights Financial Highlights (Bt million) Service revenue ex.ic* 2Q10 1Q11 2Q11 % yoy % qoq 1H10 1H11 %YoY 21,254 23,788 23, % 0.5% 42,925 47,698 11% Non-voice 3,643 4,514 4, % 4% 7,231 9,208 27% Sales revenue 1,913 3,561 3, % 3.7% 3,750 6,990 86% EBITDA margin 47.3% 46.0% 44.9% 240bps 110bps 47.5% 45.5% 200bps Sales margin 17.0% 13.2% 11.5% 550bps 170bps 16.7% 12.4% 430bps Free cash flow (EBITDA-CAPEX) 11,053 13,527 12, % 5.6% 23,352 26,294 13% Capex 1, ,209 20% 49% 2,095 2, % *restated since 1Q10 according to TFRS adoption

5 7.7mn data users reflects rising momentum of mobile data Non-voice revenue % to service revenue ex.ic 16.6% 17.1% 17.3% 17.7% 19.0% 19.6% 16.8% 19.3% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11 Apart from key cities and high-end users, data also grew in regional markets and lower-end users, driven by smart device adoption/social networking/more affordable smartphone. Despite launcing 3G, we expected rational compeition in data market resulting in a healthy data revenue with 25-30% targeted growth. Data growth indicators +38% YoY % YoY +64% YoY 10.7% 13.5% 5.6 1H10 1H11 1H10 1H11 1H10 1H11 1H10 1H11 Data subscriber (min/sub/month) Data usage (usage/sub/month) Mobile data (Bt million) Non-messaging revenue* (% to service revenue ex.ic) *Non-messeging services = Total non-voice (SMS+ Ringback tone)

6 13% FCF growth, reached Bt26bn Free Cash Flow* CAPEX 11.0bn 13.bn 12.7bn 23.3bn 26.3bn 2Q10 1Q11 2Q11 1H10 1H11 6.1% 1.5bn 2.9% 0.8bn +15% yoy -5.6% qoq *restated since 1Q10 according to TFRS adoption Capex capex to service revenue (%) 4.4% 4.2% 1.2bn 2.0bn 3.7% 2.0bn (Bt billion) +13% yoy (Bt billion) In 2Q11 YoY, FCF grew due to higher EBITDA. QoQ, FCF decreased due to lower EBITDA and higher CAPEX. In 1H11 FCF grew from higher EBITDA with maintained CAPEX. CAPEX was low due to cheaper 3G equipment cost and low 2G spending. 2Q10 1Q11 2Q11 1H10 1H11

7 FY2011 Guidance (revised) revised Service revenue excl. IC High single-digit (from 4%) > strong 1H11 results > healthy voice revenue Data revenue 25-30% yoy > social networking >low-end smart phones > regional market expansion new Sales revenue 50% yoy > Strong demand for smart devices Marketing expense 2.5-3% of total revenue > ramp up in 2H10 from seasonality & 3G activities revised Net IC receipts Bt mn (from Bt mn) > higher net IC receipts from HUTCH revised Amortization 5% > fully amotization of some assets EBITDA margin 45% > higher opex > growing handset sales CAPEX Bt10bn (incl. Bt2.5bn for 3G-900MHz) > EDGE+ upgrade > data capacity expansion

8 Satellite & Media Business

9 THCOM 2Q11 Financial Highlights Key financial results: Significant improvement in profitability

10 THCOM 2Q11 Financial Highlights Improved Net Profit: Strong growth in Satellite business

11 Key Business Revenue increased 15.9% YoY, mainly due to higher transponder rental from broadcast and telecom services. Services revenue increased 34.7% YoY, mainly due to Higher bandwidth usage mainly in India, Japan, Australia and Malaysia. Higher bandwidth fee in Japan market. Sales revenue increased 36.1% YoY, mainly due to increased in user terminal unit sales.

12 Conventional Satellite Business Highlight Key Highlights Revenue growth although there is only THCOM5 Strong commitment, contract backlog was USD256mn Hot bird in Thailand and Asia, there was 380 TV channels on THCOM5 Moving Forward Pre-launch sales of THCOM6 services Deploy HDTV on THCOM5 to stimulate demand for THCOM6 Focus on quality of service and efficiency

13 IPSTAR Highlight On April 11 SBM has fulfilled its payment obligation for 100% for its 2Gbps capacity commitment. As of 2Q11, total IPSTAR revenue YoY growth 35% In 2Q11 two major contracts were signed with NBNCo and MEASAT which will make the IPSTAR BW utilization = 24% at the end of 2011 Total IPSTAR contract backlog ~USD550mn

14 Internet & Media The total number of DTV satellite television dish sets roll out as at the end of 2Q11 was 1.07mn increase 48% from 2Q10. Total eye balls on DTV platform as of ending 2Q11 was 1.23mn or increase 40% from 2Q10. Currently, there are 82 TV and radio channels broadcasted through DTV in Thailand.

15 CSL 2Q11 Financial Highlights 2Q11 net profit from operation is Bt108mn or Bt0.18 per share, increased 3% QoQ from SG&A saving 2Q11 consolidated revenue is Bt701mn, slightly increased from 1Q11 from interest income *Impairment loss for goodwill from investing in WATTA had been recognized in 2Q11 Bt7mn (Bt0.01/share impacted to normal consolidated EPS)

16 CSL 1H11 Financial Highlights 1H11 normal consolidated net profit is Bt213mn or Bt0.36 per share, increased 18% YoY (1H10 = Bt181mn) due to improve on net result of ISP and Voice & Mobile, while net results of Yellow Pages and Print Classifieds still decline 1H11 consolidated revenue is Bt1,399mn, increased 6% YoY (1H10 = Bt1,323mn) from growth of ISP (in core products) and Voice & Mobile Business Impairment loss for goodwill from investing in WATTA had been recognized in 1H11 consolidated financial statement = Bt7mn (Bt0.01 per share impacted to normal consolidated EPS) The Board of Director approved 2011 interim dividend of Bt0.27 per share (from a standalone performance)

17 INTOUCH

18 2Q11 Statement of Profit or Loss

19 2Q11 Statement of Profit or Loss (cont )

20 1H11 Statement of Profit or Loss

21 1H11 Statement of Profit or Loss (cont )

22 INTUCH Consolidated Net Profit - QoQ 2, ,663 1Q11 AIS THCOM INTUCH, ITV, MB, ITAS 2Q11

23 INTUCH Consolidated Net Profit - YoY ,663 1,928 2Q10 AIS THCOM INTUCH, ITV, MB, ITAS 2Q11

24 Consolidated Assets and D/E ratio Btm 75,000 60,000 67,267 63,259 61,540 54% 56% 60% 50% 45,000 47,173 48,345 40% 35% 36% 36% 30% 30,000 20% 15,000 10% Q11 0% Total Assets Debt/Equity ratio Debt free at INTUCH level Cash on hand as at June 30, 2011 was Bt5bn

25 Attractive Dividend Yield Bt % % 20% 20% % % % 10% % % H11 0% DPS Dividend yiled (RHS) INTUCH announced interim dividend payment for Apr 1 Aug 10, 2011 operation at Bt1.63/share. XD date is Aug 22, 2011 and payment date is Sep 8, 2011.

26 48% 40% 32% 24% 16% 8% 0% -8% -16% Price Performance & Indices Dec-10 Jan-11 Jan-11 Feb-11 Feb-11 Mar-11 Mar-11 Apr-11 Apr-11 May-11 May-11 Jun-11 Jun-11 Jul-11 Jul-11 % Change from Closing Price at the end of 2010 INTUCH +34% ICT +32% SET +3% INTUCH ICT SET

27 Disclaimer Some statements made in this presentation are forward-looking statements, 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.