HSBC ASEAN conference Singapore HSBC 16 Feb 2017
Singtel became a Major Shareholder of INTOUCH Singtel Global Investment 21.00% 1) Aspen Holdings 19.50% 1) Free float 59.50% 1) 2) 40.45% 41.14% 99.99% 99.99% Advanced Wireless Network Co., Ltd. 99.99% 2) Wireless Device Supply Co., Ltd. 99.99% 2) DTV Service Co., Ltd. 99.99% CS Loxinfo PLC 42.07% Shenington Investments Pte. Ltd. 51% Lao Telecommunications Co., Ltd 49% 2) 51% 1) As listed in the Report of the Acquisition or Disposition of Securities (Form 246-2) submitted to the SEC by Singtel Global Investment Pte. Ltd. and Aspen Holdings Ltd. on 17 November 2016 2) Listed Company on the Stock Exchange of Thailand 2
Lower profit from AIS and THCOM but maintain pass through dividend policy Due to higher cost of AIS and lower revenue from THCOM, INTOUCH s net profit from operation declined by 21% YoY to Bt12,708mn. Unit : Million Baht 16,078-3,307-210 -24% YoY Lower sales and services revenue but cost remained +147-21% YoY 12,708 Strong dividend payout ratio at 100% Maintain pass through dividend policy Announced the first 2017 interim dividend per share of Bt1.61. XD on 7 Apr 2017 and payment date on 28 Apr 17. 4.25 4.39 4.63 4.60-21% YoY Higher 4G network investment, TOT payment, and marketing cost +23% YoY No interest provision cost at ITV 2.37 2.23 2.40 2.13 1.61 1.88 2.16 2.23 2.47 1.61 2015 AIS THCOM INTOUCH & * Others *Others = ITAS, ITV, VC, and Intouch Media (excluding reversal of interest provision at ITV) 2016 2013 2014 2015 2016 2017 3
AIS s service revenue posted a stronger growth supported by nationwide 4G network coverage Network Coverage 4G network coverage achieved 98% or nationwide only one year after launch Reached 42,100 4G base stations Increase network capacity Strengthen network competitiveness 1800 x 15MHz 2100 x 15MHz 900 x 10MHz 2100 x 15MHz (TOT partnership) Handset & User penetration Smartphone penetration 69% Data user penetration 57% 4G handset penetration 29% 2016 service revenue ex.ic grew by 1.6% YoY Total service reveue ex.ic YoY Growth 30,148 30,169-0.5% -1.0% 30,626 2.2% 31,617 1Q16 2Q16 3Q16 4Q16 5.8% 4
Fixed-broadband subscriber reached 300K with its aim to be a key player in the next 3 years AIS Fibre subscribers (sub) Cover 5.2mn home passes in 28 provinces 44,000 74,000 115,000 195,000 301,500 4Q15 1Q16 2Q16 3Q16 4Q16 Promoted high-end package subscription at better value for money, with up to 100/10Mbps at Bt990 with AIS PLAYBOX and free HOOQ for 12 months Special discounts to AIS customers and Serenade Marked 35,000 new subscriptions/month, a comparable rate to incumbent players in fixed-broadband market. Subscribers reached 301,500 at year end with Bt510 ARPU increasing from previous quarter as some short term discounts started to wear off. 5
To expand and strengthen its market position after losing key customers 50.5E 78.5E 119.5E 120E Increase bandwidth utilization on TC-6 Africa beam Increase utilization and diversification in AEC market such as Philippines and Indonesia Secure Telco projects to replace TOT contract Focus on retail market to provide service through subsidiaries 6
High Shopping reached Bt1mn average sale per day Website and application were launched 6 Jan 2016 Aug 2016 Dec 2016 2017 High Shopping started its operation on satellite platform 0.3 Peak sale At Bt2.2mn Monthly revenue per day (Btmn) 1.5 1.6 1.2 1.2 1.0 1.0 0.8 0.9 1.0 0.7 0.7 Mourning period 2017 Strategy Increase number of new products and services Increase exclusive products and develop house brand Enter online partnership platform Develop broadcasting programs and marketing strategy Cost saving initiative 7
Continue support and promote high potential startup companies Achieve a present combined value of almost Bt3bn and creating jobs for more than 400 people Ookbee Digital publication platform and e-booking Meditech Assistive technology for paralysis patients Infinity Levels Studio Mobile games Sinoze Mobile music game Social Nation Playbasis Digital gamification platform Golfdigg Golf course booking platform and other golf-related services Wongnai Thailand s No.1 food and lifestyle review portal Social Nation Advertising technology development 8
Monitor Control Support Venture Capital Merger & Acquisition Sustainable Development 2017 Strategy : Connecting Thais Proven Return on Investment Asset Management Growth Strategy New Business Expansion Reputation & Creditability Good Governance Risk Management Productivity Social Responsibility Sustainable Human Capital Management 9
INTOUCH 2017 Guidance Consolidated Financial Statement Mainly Contributed from Share of Profit of Associates 2017 Guidance 40.45% of AIS Net Profit Standalone Financial Statement 2017 Guidance General & Administrative Expenses Same level as 2016 Dividend Policy Pass through Venture Capital (InVent Project) Bt200mn 10
Appendix 11
2016 Key Highlights Statements of Profit or Loss 12
2016 Key Highlights Statements of Financial Position 13
4Q16 & 2016 Key Financial Highlights Bt mn 4Q15 3Q16 4Q16 % YoY % QoQ 2015 2016 %YoY Service revenue ex. IC 29,887 30,626 31,617 5.8% 3.2% 120,621 122,561 1.6% 2017F Guidance Increase 4-5% Sales revenue 8,422 5,064 8,315 1.3% 64% 27,798 23,924 14% Increase Total revenue ex. Construction Cost of service ex. IC 39,784 37,096 41,319 3.9% 11% 155,213 152,150 2.0% N/A 10,578 13,537 15,155 43% 12% 50,624 52,694 4.1% N/A Total SG&A 5,643 7,260 7,961 41% 9.6% 20,091 29,776 48% N/A EBITDA 17,204 15,257 15,058 12% 1.3% 70,776 60,741 14% N/A Consolidated EBITDA margin 43.2% 41.1% 36.4% 6.8% 4.7% 45.6% 39.9% 5.7% 42-44% Sales margin -0.8% -16.1% -3.3% 2.5% 13% -0.8% -4.2% 3.4% Near-zero margin Capex 7,442 13,236 10,523 41% 20% 32,255 47,554 47% Bt40-45bn 14
4Q16 & 2016 Key Financial Highlights Baht million 4Q15 3Q16 4Q16 %YoY %QoQ 2015 2016 %YoY Sales & Service revenues Satellite and related services Cost of sales and services 3,294 2,791 2,614 21% 6.3% 12,453 11,517 7.5% 2,486 2,032 1,857 25% 8.6% 9,258 8,414 9.1% 1,914 1,757 2,069 8.1% 18% 7,354 7,354 EBITDA 1,554 1,290 673 57% 48% 5,758 4,860 16% Net profit attributable to Thaicom 745 434 (114) 115% 126% 2,122 1,612 24% Normalized net profit 742 365 (65) 109% 118% 2,396 1,499 37% EBITDA margin 47.2% 46.2% 25.7% 22% 21% 46.2% 42.2% 4.0% 15
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. 16