Opportunity Day 19 Nov 2012 1
INTOUCH Group Key Highlights of 3Q12 3G on 2.1GHz auction The NBTC held the 2.1GHz license auction on 16 Oct 2012. Following this, on 18 Oct 12, the NBTC officially announced that AWN, a 99.99% subsidiary of AIS, was a winning bidder for 2x15MHz bandwidth at a total price of Bt14.6bn. The NBTC said they expect to issue the license within 90 days after the auction. Acquisition of new satellite license In late 2Q12, Thaicom successfully acquired a 20-year license from the NBTC to operate TC-7 at 120 E Investment in venture capital In late 3Q12, INTOUCH successfully launched the first company, Ookbee, under InVent project by acquiring new share issued amounting of Bt57.48mn or equivalent to 25.03% of total share. 2
What is Ookbee Ookbee is digital publication platform provider and developer on Smartphones and Tablets Ookbee provides application for purchasing and reading of e-publication by converting and distributing e- magazine/book/newspaper for publishers, and also operates book stores i.e., AIS bookstore Starts doing Ookbee platform since late 2010 The 1 st and No.1 E-publication platform in Thailand The highest market share of 88% The largest E-Book subscriber base of more than 2million readers with more than 4million books downloaded 3 3
INTOUCH Group Consolidated Net Profit 3Q12 QoQ Consolidated net profit was Bt3,467mn in 3Q12, slightly dropped QoQ. It was mainly from Mfone impairment and lower performance of INTOUCH, ITV, MB, and ITAS. YoY In 3Q12, consolidated net profit increased 37% YoY from Bt2,533mn in 3Q11. It was driven by the higher profit contribution of AIS, MB, and ITAS. 4
Telecommunication Business 5
AIS 3Q12 & 9M12 Key Financial Highlights Financial Highlights (Bt million) 3Q11 2Q12 3Q12 %YoY %QoQ 9M11 9M12 %YoY Service revenue ex.ic 24,343 26,677 26,879 10% 0.8% 72,042 80,149 11% Voice revenue 17,427 18,518 18,508 6.2% 0.1% 52,231 55,728 6.7% Non-voice revenue 5,077 6,321 6,679 32% 5.7% 14,285 18,972 33% Sales revenue 2,918 3,971 3,020 3.5% 24% 9,908 11,627 17% EBITDA 13,981 15,152 15,162 8.4% 0.1% 42,292 46,009 8.8% Normalized net profit 6,558 8,713 8,787 34% 0.8% 19,714 26,426 34% Net profit 6,172 8,713 8,787 42% 0.8% 18,557 26,426 42% EBITDA margin 45.1% 43.9% 45% 12bps 103bps 45.3% 44.5% 84bps Capex 1,699 1,669 2,490 47% 49% 3,717 5,965 61% Free cash flow (EBITDA- CAPEX) 12,282 13,483 12,672 3.2% 6% 38,576 40,044 3.8% 6
Strong mobile data momentum continues Non-voice revenue *Non-voice services = SMS+Ringback tone+enterprise+mobile data+others Mass market continued to adopt mobile data services and smart devices, resulting in increased data users and usage. Nearly 33% of customers using data and still growing. 3G subscribers increased to 3.5mn within one year after launching service 16% smart device adoption, compared to 11% last year. Data growth indicators Data subscriber (million subscriber) Mobile data usage +29% YoY +114% YoY Non-messaging revenue* (% to service revenue ex.ic) 8.9 11.5 14.1% 18.3% *Non-messaging services = Total non-voice (SMS+ Ringback tone) 7
Strong capital structure supported both long-term growth and shareholder returns Capital structure Interest bearing debt / Finance cost (Bt billion) Net debt/equity Net debt/ebitda ROE Interest bearing debt Finance cost Net Cash Net Cash Net Cash Net Cash -34% yoy -13% qoq -42% yoy -13% qoq AIS preserved financial flexibility with a net cash position. Such lower gearing is to prepare for future growth opportunities. Debenture of Bt5bn was repaid in 3Q12, resulting in lower interest bearing debt and financial cost. In 4Q12, Bt247mn long term loan will be repaid. New bank loan of Bt1.9bn was withdrawn in 3Q12, 50% of which will be repaid in 2016 and 2017. Debt repayment (Bt billion) 8
Satellite & Media Business 9
THCOM 3Q12 & 9M12 Key Financial Highlights Financial Highlights (Bt million) 3Q11 2Q12 3Q12 %YoY %QoQ 9M11 9M12 %YoY Sales & Service revenues 1,968 1,926 1,914 2.7% 0.6% 5,400 5,746 6.4% Gross profit 539 584 601 12% 2.9% 1,249 1,687 35% EBITDA 802 899 859 7.1% 4.4% 2,026 2,579 27% EBIT 149 261 215 44% 18% 98 650 563% Normalized net profit 16 118 147 819% 25% (176) 349 298% Net profit 16 115* (107)** 769% 193% (176) 50 128% EBITDA margin 40.8% 46.7% 44.9% 413bps 180bps 37.5% 44.9% 736bps Normalized margin 0.8% 6.1% 7.7% 687bps 155bps -3.3% 6.1% Net margin 0.8% 6% -5.6% 640bps 1156bps -3.3% 0.9% *Bt3mn impairment loss for goodwill of WATTA **Bt252mn impairment loss for Mfone & Bt2mn impairment loss for WATTA 10
Key Highlights of 3Q12 Accomplished National Mission @ 50.5E Successfully preserved 50.5E orbital slot Expand resource for future growth Strong Demand for Broadcast Service 7 new channels added in 3Q12 Total of 472 TV channels on TC-5 Positive Progress of THAICOM-6 Prelaunch sales Prelaunch sales of THAICOM-6 surpassed 30% break-even point Additional IPSTAR bandwidth sales with Telco Recognized bandwidth revenue from Japan s eaccess 11
Satellite Programs on Track: THAICOM-7 Completed Critical Design Review (CDR) 70% 0% 100% 25% THAICOM-6 0% 100% Critical Design Review (CDR) THAICOM-7 12
CSL 3Q12 & 9M12 Key Financial Highlights Financial Highlights (Bt million) 3Q11 2Q12 3Q12 %YoY %QoQ 9M11 9M12 %YoY Revenue 718 721 810 13% 12% 2,118 2,246 6% Gross profit 320 319 350 9% 10% 971 964 1% EBITDA 147 183 188 28% 3% 535 551 3% EBIT 112 148 151 35% 2% 427 444 4% Normalized net profit 76 99 106 39% 7% 289 312 8% Net profit 76 91 100 32% 10% 282* 298** 6% Gross margin 44.6% 44.2% 43.2% 136bps 103bps 45.9% 42.9% 293bps Normalized margin 10.6% 13.7% 12.4% 177bps 138bps 13.6% 13.9% 25bps *Bt7mn impairment loss for goodwill of WATTA **Bt14mn impairment loss for goodwill & assets of WATTA 13
Consolidated Revenue Contribution 3Q11 = Bt718mn 2Q12 = Bt721mn 3Q12 = Bt810mn Consolidated Normalized Profit Contribution 3Q11 = Bt76mn (Directories Bt4mn) 2Q12 = Bt99mn (Directories Bt21mn, Classifieds Bt2mn) 3Q12 = Bt106mn (Directories Bt23mn, Classifieds Bt1mn)
3Q12 Voice & Mobile Content Business Total revenue increase 5% QoQ, mainly from subscription services Maintain revenue stream from AIS subscribers and increase revenue from DTAC and TrueMove Adjusting the Audiotex service price from 6 to 9 baht per minute to comply with market ongoing price Create and launch 6 new applications for Smart Phone and ipad in 3Q12 : Tutor Satit Prasanmit, Satit Kaset and Satit Chula Lotto new version Love Horo English version Horoscope English version 15
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3Q12 & 9M12 Standalone Financial Statement Financial Highlights Separate (Bt million) 3Q11 2Q12 3Q12 %YoY %QoQ 9M11 9M12 YoY Dividends income 5,270 35 7,096 35% 10,248 12,255 20% Total revenues 5,286 56 7,115 35% 10,285 12,325 20% EBIT 5,217 (16) 7,034 35% 10,097 12,099 20% Net Profit 5,216 (17) 7,033 35% 10,095 12,097 20% Profit (loss) attributable to owners 5,216 (17) 7,033 35% 10,095 12,097 20% 17
Price Performance & NAV 18
INTUCH Social Responsibility Activities in 3Q12 Camp Sanook Kids with INTOUCH Phitsanulok Sakon Nakhon Phatthalung Krabi CSR Group 19
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. INTOUCH INVESTOR RELATIONS ir-intouch@intouchcompany.com TEL. +662 2995050 20