Download - 2014 12 FY - Presentation
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FY2014 Results Presentation 19 January 2015
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Forward looking statements Important note
This presentation and the following discussion may contain forward looking statements
by M1 Limited (M1) relating to financial trends for future periods
Some of the statements contained in this presentation or arising from this discussion
which are not of historical facts are statements of future expectations with respect to
financial conditions, results of operations and businesses, and related plans and
objectives. Such forward looking statements are based on M1s current views and
assumptions including, but not limited to, prevailing economic and market conditions
and currently available information. These statements involve known and unknown risks
and uncertainties that could cause actual results, performance or achievements to differ
materially from those in the forward looking statements. Such statements are not, and
should not be construed, as a representation as to future performance or achievements
of M1. In particular, such statements should not be regarded as a forecast or projection
of future performance of M1. It should be noted that the actual performance or
achievements of M1 may vary significantly from such statements.
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Overview
Service revenue increased 1.4% YoY to S$831m
EBITDA margin improved to 40.4% of service revenue
Net profit after tax increased 9.7% YoY to S$176m
Margin improved to 21.2%
Postpaid ARPU for 4Q14 increased to S$63.1
Mobile data was 38.8% of service revenue for 4Q14
66% of postpaid customers on tiered data plans
22% exceeded data bundle
Fibre customer base increased 18,000 YoY to 103,000
Proposed final dividend of 11.9 cents
Estimate moderate growth in FY2015 net profit after tax
Performance
highlights
Dividend &
Outlook
Financial
highlights
for 2014
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Financial highlights
Performance highlights
Developments and outlook
Agenda
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Operating revenue (S$m)
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
Service revenue (S$m) 207 204 209 207 211 820 831
172163 164 168 168
644
671
2027 24 24 22
114 89
191636
17 18
62 71
135
72
1631 43
188245
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
Handset sales
Fixed services
International call services
Mobile services
+24.3%
+38.4%
240 250
346
240
279
1,008
1,076
+6.8%
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Cost of sales (S$m)
8 99 88 31 3313
1110
11 9
39 38
8
14
9
17 15
70 5264
157
98
57 53
284 330
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
Handset costs
Traf f ic Expenses
Other costs
Wholesale costs of f ixed services
+37.7%
+98.8%
86
+6.8%
93
185
89
424
453
134
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Other operating expenses (S$m)
346
38
13 1168
3 6 525 247
878
1924 308 782 8
25 302019
30
20
3
7881
2929
2928 28
109114
29
22
31 27 28
115114
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
Depreciation & amortisation
Staf f costs
Facilities expenses
Leased circuit costs
Other G&A expenses
Advertising & promotion
Doubtful debt provision
+10.1%
+3.9%
97 98
388404
102106
97
+4.1%
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EBITDA & net profit after tax
EBITDA (S$m) & margin
on service revenue
Profit after tax (S$m) & margin
on service revenue
84 8679 82
83
336
312
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+9.3%
+2.3%
+7.4%
4544 4541
43
176
160
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+9.9%
+0.1%
+9.7%
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
PAT margin
(on service revenue)19.6% 21.0% 21.0% 21.5% 21.1% 19.5% 21.2%
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
EBITDA margin
(on service revenue)38.2% 40.0% 39.8% 40.8% 40.9% 38.1% 40.4%
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Capex & free cash flow
Capex (S$m) Free cash flow (S$m)
27
67
(42)5
41
176
93
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
-973.3%
-163.0%
-47.0%
283946 39
33
12514040
40
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
Cost of spectrum
-14.5% / +72.7%
-0.2% / +101.6%
+11.4% / +43.4%
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Financial leverage
S$m FY2013 FY2014 Change
Cash & cash equivalents 54.5 22.8 -58.2%
Net debt 195.5 279.2 42.8%
Net assets 395.1 394.6 -0.1%
Net debt/equity (x) 0.5 0.7 43.0%
Net debt/EBITDA (x) 0.6 0.8 32.9%
EBITDA/Interest (x) 70.1 83.0 18.4%
Net assets per share (cents) 42.8 42.4 -0.9%
EPS - diluted (cents) 17.4 18.8 8.3%
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Financial highlights
Performance highlights
Agenda
Developments and outlook
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Mobile customers
Postpaid customer base (000) Prepaid customer base (000)
1,130 1,138 1,148 1,147 1,149
4Q13 1Q14 2Q14 3Q14 4Q14
979 966
855
756 703
4Q13 1Q14 2Q14 3Q14 4Q14
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Postpaid mobile
Postpaid mobile revenue (S$m) Postpaid monthly ARPU (S$)
148 147 151143 145
558
591
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+5.9%
+2.7%
+5.8%
54.4 55.1 55.5 55.2 56.8 53.4 55.6
61.8 62.2 63.162.3 62.3 62.4 61.8
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
ARPU allocated to handset sales
+2.1%
+1.4%
+1.0%
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Prepaid mobile
Prepaid mobile revenue (S$m) Prepaid monthly ARPU (S$)
20 20 2121 19
86
80
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+1.5%
+2.4%
-6.7%
13.6 12.6
13.7
15.7 16.9
14.8 14.5
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+7.6%
+24.3%
-2.0%
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Mobile market share
Overall market share* Postpaid & prepaid market share*
* - Based on published statistics available at the time of submission
25.1% 25.0%24.1%
23.3% 23.1%
4Q13 1Q14 2Q14 3Q14 Oct-14
25.0% 24.9% 24.9% 24.7% 24.6%
4Q13 1Q14 2Q14 3Q14 Oct-14
Postpaid
25.2% 25.0%23.2%
21.6% 21.1%
4Q13 1Q14 2Q14 3Q14 Oct-14
Prepaid
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Postpaid mobile
Acquisition cost
per postpaid customer (S$) Monthly churn rate (postpaid)
Note: Cash basis
396
309
268
369
438
346 355
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+10.6%
+18.7%
+2.6%
1.1% 1.1%1.2%1.2%
1.1% 1.1% 1.1%
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
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Data plan ARPU & non-voice contribution
Data plan ARPU (S$) Mobile data and SMS contribution
to service revenue
19.6 19.5 19.7 18.3 18.3
20.8
18.9
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
-6.6%
0.0% -9.1%
31.0%32.7% 34.4%
36.4%38.8%
28.9%35.6%
12.4%12.3% 11.7%
11.5%11.1%
12.7%
11.7%
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
SMS
Mobile Data
46.1%47.9%
49.9%47.3%
45.1%43.4%
41.6%
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Fibre monthly ARPU (S$) Fibre Customer base (000)
Fixed services
8590
9498 103
4Q13 1Q14 2Q14 3Q14 4Q14
43.641.7 41.9
45.046.4 46.1
43.9
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
+6.4%
+3.1% -4.8%
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International call services
International retail minutes
(million mins)
International call services
revenue (S$m)
291276
314
250
324
1,131
1,303
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
-23.0%
-9.4%
-13.2%
24 22 2024
27
114
89
4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14
-23.4%
-9.3%
-21.6%
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Financial highlights
Performance highlights
Developments and outlook
Agenda
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Developments and outlook for 2015
Faster network and devices will drive data growth
First nationwide LTE-Advanced network supporting
300Mbps
Data usage of smartphone users
Contributed 65% of total data traffic, up from 55% a year ago
Average data usage grew to 3.0GB/month in 4Q14, from
2.5GB/month a year ago
Continue to invest in smart solutions and M2M platforms
Support Smart Nation initiatives and machine-based
applications
Mobile
services
Residential
Take-up of higher speed fibre plans will be ARPU accretive
Corporate
Focus on product and service differentiation
Well-placed to capture growth with increasing fibre adoption
Fixed
services
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Guidance for 2015
Estimate moderate growth in FY2015 net profit after tax
Capex to be around S$120m
Financial
guidance
At least 80% payout ratio
Regularly review capital requirements
Dividend
policy
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Thank you