Non-Deal Roadshow. Taipei. Prepared by Group Investor Relations

Transcription

1 Non-Deal Roadshow Taipei 12 Nov 2018

2 INTOUCH Shareholding and Investment Structure As of 17 Aug 2018 Singtel 21% HSBC 15.9% Aspen Holdings 3.19% Others 59.91% 1) 1) 1) 40.45% 41.14% 99.99% 1) 1) 1) 51% 1) Listed Company on the Stock Exchange of Thailand

3 Maintain profit growth mainly contributed from AIS Unit : Baht Million Satellite and related services revenue -13% Contribution from LTC -25% Cost of service -23% Depreciation & amortization -34% Normalized profit +2.7% YoY +8.1% YoY Core service revenue 8, % 9,644 Regulatory fee -13% Marketing expense -10% 9M17 INTOUCH AIS THCOM INTOUCH & * Others *Others = ITAS, ITV, VC, and Intouch Media Gain on sale of investment 9M18 INTOUCH 9M18 net profit increased by 8.1% YoY from Bt8.9bn to Bt9.6bn. Excluding gain on sale of CSL, normalized net profit rose by 2.7% YoY to Bt9.2bn. Key profit growth were Higher profit contribution of AIS from postpaid, fixed-broadband, and enterprise service revenues growth offset by higher depreciation and amortization from network expansion Lower profit contribution of THCOM due to lower revenue of broadcasting and broadband satellites offset by lower cost and depreciation and amortization from asset impairment at the end of 2017

4 Continue pass-through dividend with around 5% dividend yield offering Dividend payout on cash basis Avg. discount to NAV 97% 98% 95% 95% 26.72% 17.62% 20.35% 14.49% As of 5 Nov 2018, discount to NAV stood at 28.18%

5 Portfolio expansion with growth management Total 16 investments : Bt485mn new investment Portfolio Value Cost Unit : Baht million Current value Realized value Unrealized Value Social Nation Investment Policy Exit Strategy Monetized in 2016 VVR Asia 200 million baht / year Early & growth stage TMT & Digital Follow-on investment Synergy among group 5-6year investment horizon New partner acquisition Founder buy back Initial public offering

6 Choco CRM: CRM Loyalty Platform for SMEs The leader in digitized loyalty point collection service provider combining the benefits of both offline and online technology Investment date: Sep 18 Investment value: Bt40mn CRM : Aggregate (but independent) all reward programs in one app Buy Coupons and Member Packages Collect and Redeem Reward Points Coupons, physical card, mobile app Marketing Channels SMEs, , mobile app (news) Customer Database & Analytics demographic, purchasing history, etc. POS : Help retailers manage their business better and boost sales through Customer Retention using Data Analytics All POS Functions sales, inventory, report, etc. Customer Relation Support marketing & tech support for SMEs

7 3Q18 & 9M18 Key Financial Highlights Baht million 3Q17 2Q18 3Q18 %YoY %QoQ 9M17 9M18 %YoY FY18 Guidance Service revenue ex. IC & equipment rental 32,455 33,464 33, % 1.0% 95,972 99, % % (revised down) Service revenue 33,558 36,309 36, % 0.2% 99, , % Sales revenue 5,022 5,919 5,865 17% 0.9% 17,287 18, % Decline Total revenue 38,580 42,228 42, % 0.3% 116, , % Cost of service 16,811 19,202 19,835 18% 3.3% 49,586 56,317 14% Total SG&A 6,599 6,197 6, % 9.6% 18,739 19, % EBITDA 17,589 18,998 17, % 6.2% 52,043 55, % EBITDA margin ex. equipment rental 45.6% 47.0% 44.5% 1.1% 2.5% 44.7% 46.2% 1.5% 45-47% Sales margin -4.9% -3.0% -5.5% 0.6% 2.5% -4.9% -3.2% 1.7% Near zero margin Capex 10,979 4,798 5,248 52% 9.0% 33,822 16,513 51% Bt25bn

8 Mobile - Market competed on fixed-speed offerings Revenue softened from fixed-speed unlimited Net addition continued to improve Mobile revenue (Btbn) -0.2% YoY -1.1% QoQ +1.4% YoY G Penetration on total base 42% 46% 50% 55% 57% Q17 2Q18 3Q18 9M17 9M18 Remaining fixed-speed unlimited plans Net subscriber addition ( 000) Q17 4Q17 1Q18 2Q18 3Q18 Prepaid Postpaid Monthly Fee (Bt) Unlimited Fixed-speed Voice call (mins) 600 6Mbps On-net: Unlimited 5am - 5pm 700 8Mbps Off-net: 200min Content 3 months Maintained strong postpaid acquisition supported by handset campaigns and prepaidto-postpaid migration Focused on prepaid segmentation and churn improvement Discarded low-tier postpaid fixed-speed plans for new subscribers Current plan starts at Bt600, up from Bt299 Teens Outbound tourists Inbound tourists

9 FBB - Focused on quality amidst competition YoY growth remained strong Focused on quality acquisition Fixed broadband revenue (Btmn) ,013 1,094 1,117 3Q17 4Q18 1Q18 2Q18 3Q18 2, % YoY 3,224 ARPU (Bt/month) FBB revenue increased 26% YoY and 2% QoQ from increased subscribers while ARPU declined 2.2% QoQ from price competition FBB revenue contributed 3.2% of core service revenue in 9M18. Subscriber ( 000) Q17 4Q17 1Q18 2Q18 3Q18 Net addition ( 000) M17 9M18 3Q17 4Q17 1Q18 2Q18 3Q18 Proportion on bundling gradually rose Of 677k subscribers FMC, 21% Geared toward efficient long-term growth Continued operational improvement to scale up Non-FMC, 79% Aimed to offer FMC to serve customers with integrated benefits Enhancing sales strategy Coverage 50 cities Increasing utilization Leveraging integrated proposition

10 Digital services - New services to serve both Enterprise and Consumer Explored IoT/Cloud solutions to enhance new growth Mobile e-wallet: continued strong take-up 99.11% Consol. Bt1.2bn from CSL as service revenue in 9M18 Partnered to expand IoT/Cloud services for enterprise e.g. NB-IoT motor tracker, smart coin kiosk machine, Public cloud for education etc. Video platform: building up subscriptions 1.8mn active users (Sep 18) Available on both mobile and FBB AIS PLAY PLAYBOX Live concert World-class content on AIS PLAY application and PLAYBOX Exclusive operator billing, more convenience for AIS s customers (mn users) Feb-18 AIS started investment Sep Active Registered, but not active Expanded use case to transportation A tie-up between RLP and sky train s Rabbit card to combine wallet and allow payment directly from the wallet Launched cross-border e-wallet Collaborated with Singtel to launch a cross-border mobile e-wallet platform VIA Facilitate seamless payment for both Thai and Singaporean travelers Aim to provide cross-border gateway for other e-wallets

11 3Q18 & 9M18 Key Financial Highlights Baht million 3Q17 2Q18 3Q18 %YoY %QoQ 9M17 9M18 %YoY Satellite and related services 1,605 1,495 1, % 0.6% 5,226 4,503 14% Cost of sales and services 1,258 1,046 1,027 18% 1.8% 4,010 3,074 23% Satellite EBITDA % 3.4% 2,413 1,835 24% Net profit attributable to Thaicom Normalized net profit attributable to Thaicom* % 59% 540 2, % % 59% % Satellite EBITDA margin 48% 48% 46% 2.0% 2.0% 47% 42% 5.8% *Normalized net profit attributable to Thaicom excl. loss from impairment and profit from sale of CSL s share

12 Satellite performance continued to improve Satellite Revenue Unit: Baht million Broadband Conventional TV EBITDA margin 48% 48% 46% 48% 1,571 1,466 1,479 41% 39% 39% 59% 61% 61% 5,082 4,407 44% 39% 56% 61% 3Q17 2Q18 3Q18 9M17 9M18 42% 3Q18 Satellite revenue was Bt1,479mn. QoQ - Increased by 1% due to ramp up of customers. YoY - Decreased by 3% following the churn of major customers during 2Q-4Q17 and the decrease of price per unit sold following market price dropped. Capacity Utilization Broadband Conventional TV 58% 59% 58% 48% 29% 29% Conventional utilization slightly dropped QoQ mainly from end of contract of domestic customers. 3Q17 2Q18 3Q18

13 3Q18 & 9M18 Commercial Highlights Core business Broadband platform Philippines WIT wholesales bandwidth to support nationwide enterprise and government broadband projects (~4% of Thaicom 4) Japan s KDDI additional bandwidth for mobile backhaul services (~1% of Thaicom 4) Adjacent business Broadcast platform Signed a contract with Bangladesh Communication Satellite Company Limited (BCSCL) for Bangladesh s national satellite consultancy service, period ~2 years Acquired TelOne, new African telecom customer in Zimbabwe to provide rural broadband services in Africa THAICOM offered Digital Life set top boxes, to support distance learning in a smart classroom model in accordance with government policy 4.0 NAVA service: Additional 27 vessels in Thailand (total 47 vessels) Signed a contract with Royal Thai Navy for additional 12 vessels

14 Moving Forward Core Business Continue satellite business under Thailand regulation, Consortium and/or partnership model Thailand: Capture government projects to serve Thailand 4.0 India: Leverage partnership to serve Digital India Australia: E2E Solutions and managed services Others: Capture new demand and other opportunities Adjacent Business Continue develop adjacent businesses: Maritime, Profession & Engineering services and Value-added services New Business Maritime: Expand service to Asia Professional Services: Bangladesh satellite program Engineering Services: China s TCSTAR-1 LOOX TV download expanded to 1 million subscribers Explore new businesses for long-term plan: VDO Analytics, Robotic and Drone Target to start in 2019 Proof of concept & Business prototyping

15 Satellite Fleet De-orbited In-orbited THAICOM 1A THAICOM 2 THAICOM 3 THAICOM 4 De-orbited: De-orbited: De-orbited: (IPSTAR) THAICOM 5 THAICOM 6 THAICOM 7 THAICOM 8 Scheme Operating Concession License Type of Satellite Broadband Conventional Conventional Fee 22.5% 4.00% Contract Life (Yr) 30 yr (2021) 20 yr (2032) Useful Life (Yr)

16 Higher audience drove average sales per day 9M17 9M18 Average sales per day (Btmn) 6% 92% % 94% 6% % 2.1 TV Internet/Mobile Others 9M17 9M18 9M18 Strategy Increase viewer strategy Developed new channels on satellite platform by partnership with satellite TV station and airtime buying Customers +1.1X YoY More high margin product sales Increase high margin product mix with the diversity of product category: fashion, health, and beauty Moving Forward Increase viewer strategy Continue develop additional channels on satellite platform by using revenue sharing model and airtime rental Expansion to online shopping and social media channels More high margin product sales Product differentiation and diversification: fashion, health, and beauty

17 Appendix

18 Consolidated Financial Statements 3Q18 & 9M18 Statements of Profit or Loss Baht million 3Q17 2Q18 3Q18 %YoY %QoQ 9M17 9M18 %YoY Revenues from sales and services Share of profit of investments in associates 2,349 1,528 1,537-35% 0.6% 7,436 4,831-35% 2,982 3,279 2, % -17% 8,974 9, % Total revenues 5,495 4,986 4,360-21% -13% 17,073 16, % Cost of sales and service 1, % -0.6% 4,673 2,616-44% SG&A % 14% 1,746 1,372-21% EBIT 3,193 3,589 2, % -19% 9,908 11,389 15% Net profit attributable to Company 2,928 3,298 2, % -18% 8,919 9, % Normalized net profit* 2,928 3,298 2, % -18% 8,919 9, % *Normalized net profit excl. profit from sale of CSL s share

19 3Q18 & 9M18 Statements of Profit or Loss Separate Financial Statements Baht million 3Q17 2Q18 3Q18 %YoY %QoQ 9M17 9M18 %YoY Share of net results from investments in subsidiaries Share of profit of investments in associates % -62% % 2,982 3,279 2, % -17% 8,974 9, % Other income % 100% % Total revenues 3,011 3,381 2, % 17% 9,202 9, % SG&A % 2.4% % EBIT 2,926 3,296 2, % -18% 8,917 9, % Net profit attributable to Company 2,925 3,295 2, % -18% 8,915 9, %

20 9M18 Statements of Financial Position Baht million Cash & cash equivalents and current investment Investments in subsidiaries and associates Investments in associates and joint ventures Consolidated Separate Dec-17 Sep-18 Dec-17 Sep-18 8,418 9,807 1,869 2, ,968 27,822 22,978 22, Property and equipment 7,943 7, Intangible assets under operating agreements 3,987 3, Other assets 7,634 5, Total assets 50,960 49,076 29,942 29,935 Interest-bearing debt 7,335 6, Other liabilities 6,298 6, Total liabilities 13,633 11, Total shareholders equity 37,327 37,267 29,800 29,802 Total liabilities & shareholders equity 50,960 49,076 29,942 29,935

21 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.