intouch holdings plc. 8th asia pacific tmt conference intouch group...intouch holdings plc. 8th asia...
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Prepared by Group Investor Relations
Intouch Holdings Plc. 8th Asia Pacific TMT
Conference
BNP PARIBAS22-23 May 2017
Hong Kong
INTOUCH Investment Structure
2
1)
1)
1) Listed Company on the Stock Exchange of Thailand
1)
2)
51%
Wireless Device Supply Co., Ltd. 99.99%
Advanced Wireless Network Co., Ltd. 99.99%
DTV Service Co., Ltd. 99.99%
Shenington Investments Pte. Ltd. 51%
CS Loxinfo PLC 42.07%
Lao Telecommunications Co., Ltd 49%
40.45% 41.14% 99.99% 99.99%
Prepared by Group Investor Relations
1) 1)
1)
1) 1)
1)
Lower profit from AIS and THCOM
3
*Others = ITAS, ITV, VC, and Intouch Media
*
• Due to higher overall cost of AIS and lower revenue from THCOM, INTOUCH’s
net profit from operation declined by 10% YoY to Bt3,119mn.
Prepared by Group Investor Relations
1Q16 AIS THCOM INTOUCH & Others 1Q17
3,458-159
-182+2 3,119
-10% YoY
• -5% YoY
• Higher D&A from
4G expansion,
Network OPEX
• -63% YoY
• Lower sales and
services revenue
• +2.1% YoY
• Lower loss of
other business
Consolidated financial results
Unit : Baht Million
1Q17 Key Financial Highlights
4Prepared by Group Investor Relations
Baht Million 1Q16 4Q16 1Q17 % YoY % QoQFY17
Guidance
Service revenue ex. IC 30,148 31,617 31,364 ▲4.0% ▼0.8%+4-5%
Increase
Sales revenue 5,663 8,315 6,407 ▲13% ▼23%
Total revenue ex. Construction
37,252 41,319 38,858 ▲4.3% ▼6.0%
Cost of service ex. IC 12,693 15,155 15,203 ▲20% ▲0.3%
Total SG&A 8,095 7,961 5,439 ▼33% ▼32%
EBITDA 13,415 15,058 17,347 ▲29% ▲15%
Consolidated EBITDA margin
36.0% 36.4% 44.6% ▲8.6% ▲8.2% 42-44%
Sales margin -0.3% -3.3% -6.7% ▼6.4% ▼3.4%Near zero
margin
Capex 12,102 10,523 11,509 ▼4.9% ▲9.4% Bt40-45bn
AIS’s service revenue improved YoYsupported by 4G network quality enhancement
5
Build a mobile data leadership
4G network covered 98% of population
4G handset penetration 35%
Data user 4GB/Sub/month
Enhance network quality and capacity
with Bt11.5bn on 4G Carrier Aggregation
1800 x 15MHz
2100 x 15MHz
900 x 10MHz
2100 x 15MHz (TOT partnership)
30,148 30,169
30,626
31,617
31,364
-0.5%
-1.0%
2.2%
5.8%
4.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Total service reveue ex.IC
YoY Growth
Prepared by Group Investor Relations
• 1Q17 service revenue ex.IC
grew by 4% YoY
Contribute long-term growth through
Digital contents
Offer HBO, FOX, NBA, Cinemax and Vie
on AIS PLAY & PLAYBOX
3G4G
4G
3G4G
3G4G 2G
44,000 74,000
115,000
195,000
301,500
373,900
4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Fixed-broadband subscriber reached 374K with its aim to be a key player in the next 3 years
6
Cover 5.2mn home passes
in 28 provinces
AIS Fibre subscribers (sub)
• Continue increasing fixed broadband
subscriber base to 374K in area of 28 key
cities with ARPU increased to Bt541.
• Revenue of fixed broadband accounted for
1.7% of service revenue.
• Segment offerings 1) pure broadband
connection 2) broadband connection with
AIS PLAYBOX
• Encourage brand loyalty - Special
discounts to AIS Customers and Serenade
for Max Speed Internet 100/10Mbps at
Bt999 and Bt899 with AIS PLAYBOX and
free HOOQ for 12 months
Prepared by Group Investor Relations
7
*customers contracted for 12 months
Handset Plan focus on postpaid segment, attract high-value customers
The revenue driver from postpaid
segment :
Focus on acquiring quality customers
(mid- to high ARPU subscription)
Offer high-end smartphones with discounts
up to 40%
Target mid-end users by offering discounts
up to 70%
Digital Contents from HBO, FOX, NBA, Cinemax, Warner, Viu
• Registered 1.5mn active users on AIS PLAY and 300k on AIS PLAYBOX
Enterprise Cloud
• expand into Enterprise Cloud with global partners
Mobile Fixed broadband
8
Enhance customers’ stickiness by Integrated Services to create long-term growth
Baht Million 1Q16 4Q16 1Q17 %YoY %QoQ
Sales & Service revenues 3,210 2,614 2,731 ▼15% ▲4.5%
Satellite and related services 2,394 1,857 1,956 ▼18% ▲5.3%
Cost of sales and services 1,794 2,069 1,870 ▲4.2% ▼9.6%
EBITDA 1,503 673 1,078 ▼28% ▲60%
Net profit attributable to Thaicom 700 -114 259 ▼63% ▲327%
Normalized net profit 749 -80 308 ▼59% ▲485%
EBITDA margin 46.8% 25.7% 39.5% ▼7.3% ▲14%
1Q17 Key Financial Highlights
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Satellite Fleet
THAICOM 1A THAICOM 2 THAICOM 3 THAICOM 4
(IPSTAR)THAICOM 5 THAICOM 6 THAICOM 7 THAICOM 8
Scheme Operating Concession License
Type of Satellite Broadband Conventional Conventional
Fee 22.5% 5.25%
Contract Life (Yr) 30 yr (2021) 20 yr (2032)
Useful Life (Yr) 15 14 18 18 18
In-orbitedDe-orbited
De-orbited:
2010
De-orbited:
2010De-orbited:
2006
10Prepared by Group Investor Relations
Prepared by Group Investor Relations
Note: TPE = 36 MHz transponder equivalents
Satellite Footprint
TC4 (Ku)
TC5 (C,Ku)
50.5E 78.5E 120E119.5ECoverage Area
TC4
TC5
TC6 (C,Ku)
TC7 (C)
TC6
TC7
TC4 TC5 TC6 TC7 TC8
119.5°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 881 40 33 14 24
TC8 (Ku)
TC8
11
12
Strengthen its market position in Core services, New Services and Business expansion
Business Expansion Enhance THAICOM competitiveness
and maintain sustainable growth
Expanding new service into supply
chain
Increase number of satellite
Prepared by Group Investor Relations
Core Services Increase bandwidth utilization and
diversification
Broadcast Satellite - Greater Mekong
Sub region and South Asia
Broadband Satellite - Secure Telco &
Government segments in
Thailand, Philippines, India
Focus on retail market in Australia and
New Zealand
Innovative Services Grow mobility platforms in focused
markets in-flight entertainment &
connectivity, Maritime
In-flight – commercial airlines
Maritime – transportation and
logistic companies
Enhance OTT Platforms (2nd screen)
and expand services in Thailand
Prepared by Group Investor Relations
0.7
1.0 1.00.8
0.9
1.2 1.21.0
1.51.6
1.7 1.7 1.7
Ma
r-1
6
Apr-
16
Ma
y-1
6
Jun-1
6
Jul-1
6
Aug-1
6
Sep-1
6
Oct-
16
No
v-1
6
De
c-1
6
Jan-1
7
Feb
-17
Ma
r-1
7
Monthly revenue per day (Btmn)
High Shopping expected to be top 3 home shopping company in 2018
13
2017Dec 2016Aug 20166 Jan 2016
Peak saleAt Bt2.5mn
Website and
applicationwere launched
2017 Strategy
• Product Differentiation - Increase
number of new products and
services, increase exclusive
products and develop house brand
• Partnership Building - Enter online
partnership platform (11street and
LAZADA)
• Channel Expansion - Develop
broadcasting programs (Air time)
and marketing strategy
• Cost saving initiative
High Shoppingstarted its operation
on satellite platform
Mourning period
DiscountUp to
Continue support and promote high potential startup companies
14
Achieve a present combined value of almost Bt3bn and creating jobs for
more than 400 people
Digital publication
platform and e-booking
OokbeeAssistive technology for
paralysis patients
Meditech
Thailand’s No.1 food
and lifestyle review
portal
WongnaiDigital gamification
platform
Playbasis
Mobile games
Infinity Levels Studio
Golf course booking
platform and other
golf-related services
Golfdigg
Social
Nation
Advertising technology
development
Social Nation
Mobile music game
Sinoze
Prepared by Group Investor Relations
2017 Guidance
15
Consolidated Financial Statement 2017 Guidance
Revenue from sales and rendering of
services
Expected to be flat YoY
Mainly Contributed from Share of
Profit of Associates
40.45% of AIS results
Standalone Financial Statement 2017 Guidance
General & Administrative Expenses Same level as 2016
Dividend Policy Pass through
Venture Capital (InVent Project) Bt200mn
Prepared by Group Investor Relations
Q&A
Prepared by Group Investor Relations 16
17Prepared by Group Investor Relations
1Q17 Key Financial Highlights
Baht Million 1Q16 4Q16 1Q17 %YoY %QoQ
Revenues from sales and services 3,241 2,649 2,767 ▼15% ▲3.6%
Share of profit of investments in associates 3,258 2,793 3,107 ▼4.6% ▲9.6%
Total revenues 6,724 5,505 6,047 ▼10% ▲8.0%
Cost of sales and service 1,551 1,823 1,634 ▲5.4% ▼12%
SG&A 655 716 601 ▼8.2% ▼18%
EBIT 4,187 2,613 3,504 ▼16% ▲21%
Net profit attributable to Company 3,913 2,561 3,323 ▼15% ▲19%
Consolidated Financial Statements
1Q17 Key Financial Highlights Statements of Profit or Loss
18Prepared by Group Investor Relations
1Q16 1Q17 %YoY 1Q16 1Q17 %YoYRevenues from sales and rendering of services 3,241 2,767 -15%Share of net results from investments in subsidiaries 263 100 -62.1%Share of profit of investments in joint ventures 14 12 -14%Share of profit of investments in associates 3,258 3,107 -4.6% 3,258 3,107 -4.6%Net foreign exchange gain 114 95 -17%Other income 97 65 -33% 42 8 -81%Total revenues 6,724 6,046 -10% 3,563 3,215 -9.8%Cost of sales and rendering of services 1,551 1,634 5.4%Operating agreement fee 273 266 -2.6%Loss on provision for interest
of unpaid operating agreement fee 15 - -100%Management benefit expenses 42 42 0.0% 22 20 -9.1%SG&A 655 601 -8.2% 77 78 1.3%Total expenses 2,537 2,543 0.2% 99 98 -1.0%EBIT 4,187 3,504 -16% 3,464 3,117 -10%Profit for the period to owners of the parent 3,458 3,119 -9.8% 3,464 3,117 -10%
Baht MillionSeparateConsolidated
Consolidated Financial Statements
1Q17 Key Financial Highlights Statements of Financial Position
19Prepared by Group Investor Relations
Dec-16 Mar-17 Dec-16 Mar-17Cash & cash equivalents and current investment 9,160 9,174 1,751 1,629 Dividends receivable 5,160 - 5,475 Investments in subsidiaries 7,998 7,739 Investments in joint ventures 1,555 1,499 Investments in associates 18,342 16,293 18,342 16,293 Property and equipment 9,441 9,272 Intangible assets under operating agreements 9,205 8,706 Other assets 6,904 6,741 98 95 Total assets 54,607 56,845 28,189 31,231 Dividends payable 5,690 - 5,162 Interest-bearing debt 10,168 9,565 Other liabilities 6,764 6,379 137 97 Total liabilities 16,932 15,944 136 5,259 Total shareholders’ equity 37,675 35,211 28,053 25,972 Total liabilities and shareholders’ equity 54,607 56,845 28,189 31,231
SeparateConsolidatedBaht Million
Consolidated Financial Statements
“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 corporateplans, strategies and beliefs and other statements that are not historical facts. These statements can be identifiedby 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 currentlyavailable 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 achievementsexpressed or implied by such forward-looking statements. Please note that the company and executives/staff donot control and cannot guarantee the relevance, timeliness, or accuracy of these statements.”
Disclaimer
20Prepared by Group Investor Relations