Intouch Holdings Plc.

Transcription

1 Intouch Holdings Plc. 19 th Asian Investment Conference Hong Kong 7-8 Apr

2 MISSION VISION We are the leading and sustainable value creation asset management company in Telecom, Media, IT and Digital content. We strive to deliver sustainable growth and long-term value to shareholders by investing and managing telecom, media, IT and digital content businesses. We actively explore new business opportunities in telecom, media, IT and digital content. We commit to good corporate governance practices. We commit to good corporate citizen that contribute and create shared value (CSV) for organization and society. We uphold corporate core values that focus on integrity, teamwork, innovation, people excellence and social responsibility (I-TIES). 2

3 Investment Structure Aspen Holdings 40.50% Free float 59.50% 1) 1) 1) 2) 40.45% 41.14% 99.99% 99.99% Advanced Wireless Network Co., Ltd % 2) Wireless Device Supply Co., Ltd % 2) DTV Service Co., Ltd % CS Loxinfo PLC 42.07% Shenington Investments Pte. Ltd. 51% 2) 51% 3 Lao Telecommunications Co., Ltd 49% 1) Shareholding structure as of 3 Mar ) Listed Company on the Stock Exchange of Thailand

4 Sustainable Development 2016 Business Direction Proven Return on Investment Growth Strategy Reputation & Creditability Asset Management New business / Expansion Good Governance Monitor Control Support E-Payment Social Responsibility Risk Management Customer Intelligence Productivity DJSI Membership 4 4 Sustainable Human Capital Management

5 INTOUCH 2016 Guidance Consolidated Financial Statement Sales & Service Revenues Share of Profit of Associates 3-5% 40.45% of AIS Net Profit Standalone Financial Statement General & Administrative Expenses Bt mn Dividend Policy Pass through Venture Capital (InVent Project) Bt200mn 5

6 INTOUCH Group Highlights 4G service launched on 26 th Jan 2016 with 42 provinces coverage. Target 4G network coverage in 77 provinces with 50% population coverage in Launched on 6 th Jan Currently, sales per day reaches Bt1mn with an upward trend. Target Bt500mn revenue in Fully utilized of TC-7. TC-8 is ready to launch soon. TC-9 is being studied. 6

7 INTOUCH Group Highlights Bt4.63 total DPS announced in 2015 and Bt2.47 first interim dividend in Total 7 companies under InVent project. Successfully monetized one, Computerlogy in Jan Completed Gossip Girl first season with the third rank of TV rating in the time slot. 7

8 Award & Recognition Board of the Year Award 2015 SET AWARDS 2015 Best CEO Award and Best Company Performance Award Thailand Sustainability Investment Award 8 Best Popular Stock Award and Best Popular Technology Stock Award

9 Digital Content 9

10 Successfully Launched HIGH Shopping on 6 th Jan 2016 JV in Home Shopping business, one of Intouch s digital content business, with Hyundai Home Shopping, South Korea. The TV home shopping market is expected to double in market value of Bt20bn by Intend to be one of the leading in Thai market. 10

11 Top Selling Products & Promotion Campaign Best Seller Detail detail detail detail Detail detail detail detail Detail detail detail detail AIS s customers get 10% discount Detail detail detail detail 11 7 days 7 free gifts

12 INTOUCH 2015 Profit Contribution Consolidated Net Profit (Btmn) YoY AIS 14,538 15, % THCOM % INTOUCH & Others * (435) (649) 49% Consolidated net profit 14,761 16, % Consolidated Net Profit (%) YoY AIS 98.5% 98.6% 0.1% THCOM 4.5% 5.4% 0.9% INTOUCH & Others* -2.9% -4.0% 1.1% Consolidated net profit 100% 100% 12 *Others = ITAS, MB, ITV, VC, and Intouch Media

13 INTOUCH Healthy Standalone Net Cash Position in 2015 Assets (Btmn) Others, 108 Cash, 1,799 Liabilities & Equity (Btmn) Liabilities, 180 Investment, 12,519 Equity, 14,246 As of 31 Dec

14 Local Wireless Telecommunication Business 14

15 AIS 4Q15 & 2015 Key Financial Highlights Baht million 4Q14 3Q15 4Q15 %YoY %QoQ %YoY Guidance Service revenue ex. IC 30,037 29,956 29, % 0.2% 117, , % Flat Sales revenue 8,454 5,356 8, % 57% 23,332 27,798 19% Flat Total revenue ex. construction Cost of service ex. IC 40,444 36,769 39, % 8.2% 148, , % NA 12,780 13,124 10,578 17% 19% 53,034 50, % NA Total SG&A 5,069 4,896 5,643 11% 15% 18,860 20, % NA EBITDA 17,727 17,431 17, % 1.3% 66,428 70, % NA Consolidated EBITDA margin Service EBITDA margin 43.8% 47.4% 43.2% 0.6% 4.2% 44.7% 45.6% 0.9% 37%-38% 54.9% 57.4% 55.1% 0.2% 2.3% 52.8% 55.7% 2.9% NA Sales margin 1.8% -11% -0.8% 2.6% 10.2% 0.8% -0.8% 1.6% +3%-4% Capex 6,866 8,765 7, % 15% 32,562 32,255 1% Bt40bn 15

16 Current spectrum portfolio sufficient in next 3-5 years 2100MHz Under TOT partnership (to be finalized) 1800MHz 15MHz bandwidth License until MHz 15MHz bandwidth License until 2027 new carriers for long-term competitiveness Fully deployed 4G 7,000 base stations 42 provinces as of 26- Jan Fully deployed 3G 27,200 base stations 98% pop. coverage High-gain antenna and Cell splitting to increase cell capacity 27,200 3G base stations (small cells included) 22,500 towers (13,198 disputed) 16

17 Partnership with TOT 1800MHz License 15MHz band 2100MHz License 15MHz band Mobile: Strategy & Implications without 900MHz By mid year Fill up 4,000 locations to fully substitute 2G network Increase capacity for 2G-to-3G migration By year end Strengthen 3G network to maintain leading quality position Enhance mass market adoption By mid year 14,000 sites of 4G to cover 77 provinces Deploy LTE-A by carrier aggregating with 2.1GHz in key urban areas Competitive 4G price plans launched By year end 18,000 sites of 4G in 2H16, covering 50% of population Expand deployment of LTE-A to all provinces 17 FY16 Strategy 2100MHz utilization Long-term Available carriers for network flexibility and competitiveness enhancement Disputed towers Long-term Set up JV to secure stakes Dissolve dispute 2G facilities Long-term Utilize valuable assets & properly allocate CAPEX

18 FBB: 2016, a year of attacking & winning 2015 Recap 2016 Strategy End of Dec-15 44,000 subs 1.7mn homepass Covering 12 provinces The year of establishing fundamental New skill set on fiber installation Build up technical support team Allocate workforce Ensure punctual customer appointment and satisfaction Better technology of FTTx with better pricing Free AIS PLAYBOX and installation Achieve full coverage in cities of 24 provinces or 6.5mn homepass Recruit and streamlining workforce New capex budget of Bt7bn Achieve significant market share in three years Lead in very attractive bundling packs & deploy mass advertisement 18

19 Digital content: more focused, more impactful MOBILE MONEY GAME VIDEO CLOUD M2M Entertainment gateway on MOBILE: AIS PLAY Most Varieties & Most Convenience 100+ Live TV channels Catchup TV (7 days) 3,000+ hr of video on demand Easy access to popular stores (HOOQ, Primetime, etc.) Local & Hollywood content Entertainment gateway on FIXED: AIS PLAYBOX 19

20 Mobile: competitive 4G price plans, gearing toward limited package offerings Leading limited high data allowance Product differentiation 4.2mn 4G-enabled handsets ready on AIS base Expect ARPU uplift from attractive data allowance (All plans are available for both existing and new subs) 4G Multi Package One number, up to 5 devices (Packages Bt488 up) 4G Share Package One package, up to 5 numbers (Packages Bt888 up) 20 FY16 Strategy

21 company s competitiveness Business Direction of AIS Unlock spectrum limitation and regain customer perception after 4G launch Leading in digital ecosystem to find new sources of revenue Professional management Strong financial health Likely intense market competition EBITDA recovered after 2G shutdown Cultivate top-to-bottom sustainable working culture Temporary impact from 2G shutdown on revenue and cost now Upcoming spectrum auctions on several potential bands e.g. 850MHz, 1.8GHz, 2.6GHz medium-term long-term time 21

22 Satellite & International Businesses 22

23 THCOM 4Q15 & 2015 Key Financial Highlights Baht million 4Q14 3Q15 4Q15 %YoY %QoQ %YoY Sales & Service revenues 3,050 3,147 3, % 4.7% 11,893 12, % Satellite and related services 2,235 2,303 2,486 11% 7.9% 8,783 9, % Cost of sales and services 1,819 1,824 1, % 4.9% 7,041 7, % EBITDA 1,301 1,514 1,554 19% 2.6% 5,110 5,758 13% Net profit attributable to Thaicom % 181% 1,601 2,122 33% Normalized net profit % 18% 1,798 2,396 33% EBITDA margin 42.7% 48.1% 47.2% 5.4% 0.9% 43.0% 46.2% 3.2% 23

24 2015 Key Achievements Broadcast platform highlights The number of satellite TV channels grew 13% YoY Total channels increased from 702 to 792 channels HD channels increased from 110 to 126 channels Commercialized India s Headend-In-The-Sky (HITS) platform (NXT DIGITAL) Providing content distribution for digital cable TV services across India Broadband platform highlights Malaysia s Measat committed to 100% bandwidth capacity Australia s NBN extended its contract until Sep 2017 Recognized Revenue sharing from China s Synertone 24

25 2015 Key Achievements Over-The-Top (OTT) platform highlights Commercialized 2nd Screen service Thailand s Joint Venture Kantana and INTOUCH (Gossip Girl Thailand) Laos TV Laos Company Limited (Miss Laos 2015) Provided Multi-Screen service to Thailand s Advanced Wireless Network (AWN) Transcode content in different formats to support live video streaming service on AIS Playbox and AIS Play application Mobility platform highlights Japan s Softbank expanded Maritime services for additional 4 ferries Thailand s Nok Air purchased IFEC equipment for its 6th aircraft 25

26 Satellite Footprint 50.5E 78.5E 119.5E 120E Coverage Area TC4 TC5 TC6 TC7 TC8 26 Note: TPE = 36 MHz transponder equivalents TC5 (C,Ku) TC6 (C,Ku) TC8 (Ku) TC4 TC5 TC6 TC7 TC E 78.5 E 78.5 E 120 E 78.5 E C Ku C Ku C Ku C Ku C Ku Indochina SEA South Asia North Asia Australasia ME, Africa Total TPE TC4 (Ku) TC7 (C)

27 Business direction of THAICOM Short Term To Maximize existing assets and grow value added revenues Medium Term To ensure long-term service continuity Long Term To leverage market access and partnership 27

28 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. 28