intouch holdings plc thailand investor conference conf 7...intouch holdings plc thailand investor...

Intouch Holdings Plc

Thailand Investor Conference

Prepared by Group Investor Relations1

New York7-8 Oct 2015


Auction Silent PeriodSince AIS, an associated company of INTOUCH, plans to participate in the auction of 1800MHz spectrum, whichwill take place on 11 November 2015, and 900MHz spectrum (tentative 15 December 2015), AIS and INTOUCHhave to enter a silent period in order to comply with transparent procedures of the auction. Therefore, the auctionsilent period will be from 30 September 2015 until the announcement of bidding result. This is to avoid disclosureand discussion of any information in regards to the bidding and business plan.

The detailed requirements from the IM of 1800/900MHz auction are as follow:NBTC prohibits the disclosure of the following information• Information related to the auction valuation, bid price, business plan, network plan, financial plan, marketing

and operational plan, cost and investment, expected regulatory costs• Technical information i.e. network and equipment type, supplier and sourcing, market price, intellectual

property• Information related to persons involving in the bidding including outsourcing parties, names, work scope and

duty• Information and/or behavior related to bid submission, bid offering, investment cost, budget, and assets or

other information related to bid offering• Information and/or behavior that lead to potential assessment by other bidders of the bidding value and bid

offering by the applicants e.g. name list of company representatives to join the bid, other persons involving inthe bid

Investment StructureAspen Holdings

41.62%Free float58.38%

2)

1)

1) Shareholding structure as of 27 Aug 20152) Listed Company on the Stock Exchange of Thailand

2)

Wireless Device Supply Co., Ltd. 99.99%

2)

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%

2)

1) 1)

40.45% 41.14%

22.3%

24.0%

25.0%

3

Convertible Loan

16.7%

Prepared by Group Investor Relations

15.4%

99.99%

51%

Consolidated Net Profit(Bt million)

2Q14 1Q15 2Q15 YoY QoQ 1H14 1H15 YoY

AIS 3,422 4,011 3,974 ▲16% ▼0.9% 7,245 7,984 ▲10%

THCOM 205 222 235 ▲15% ▲5.9% 369 458 ▲24%

INTOUCH & Others (123) (132) (124) ▼0.9% ▲6.0% (283) (256) ▲10%

Consolidated net profit 3,504 4,101 4,085 ▲17% ▼0.4% 7,331 8,186 ▲12%

INTOUCH Group 1H15 Profit Contribution


*Others = ITAS, MB, ITV, VC, and Intouch Media

*

Consolidated Net Profit(%)

2Q14 1Q15 2Q15 YoY QoQ 1H14 1H15 YoY

AIS 98% 98% 97% ▼0.4% ▼0.5% 99% 98% ▼1.3%

THCOM 6% 5% 6% ▼0.1% ▲0.3% 5% 6% ▲0.6%

INTOUCH & Others -4% -3% -3% ▲0.5% ▲0.2% -4% -3% ▲0.7%

Consolidated net profit 100% 100% 100% ▼0.4% 100% 100%

*

Cash, 1,958

Investment, 12,373

Others, 145

Assets (Btm)

INTOUCH Healthy Standalone Net Cash Position


Liabilities, 138

Equity, 14,338

Liabilities & Equity (Btm)

As of Jun 2015

5

Strong consolidated revenue from sales and service growth of 4% YoY

and net profit growth of 12% YoY

Expand into new business: Set up High Shopping, a home shopping

business, and launched Gossip Girl Thailand

Total 6 companies under portfolio and more than 10 companies in pipeline 2nd interim DPS of Bt2.40, or Bt4.63 total DPS announcement in 2015


INTOUCH Group 1H15 Significant Events

AIS – Network capacity increasedto 23,800 base stations and 3Ghandset penetration raised to62%. AIS fibre reached 146K homepasses with 11,900 subs.

InVent – Supporting morestartups companies with 6investment under portfolio.

THCOM – Higher utilization rateof conventional satellite and13% pre-sale of TC-8.

6

INTOUCH 2015 Guidance

Sales & Service Revenues

5-7%5-7%▲

General & Administrative

Expenses

5-7%Bt400-450mn

Share of Profit of Associates

5-7%40.45% of AIS Net Profit

Venture Capital Project (InVent)

Bt200mn

Dividend Policy

5-7%Pass through


Consolidated Financial Statement

Standalone Financial Statement

7

Intouch Media: Stepping into new business


• JV in Home Shopping business, one of Intouch’s digital content business

• Authorized capital of Bt500m 51% by Intouch Media 49% by Hyundai Home Shopping

• To provide high quality and premium products and plan to broadcast by 4Q15

• Expect to be one of the leading in Thai market

8

Intouch Media: Gossip Girl Thailand launched on 16 July


Rerun• Uncensored

version• TV version• Bonus scenes

Online Shopping

• Total investment Bt40m• JV 50:50 with Kantana• 18 Episodes (60mins/episode)

• On channel • Start from 16 July – end of Nov 2015

Chat room

Quiz & Game

34,000++ Followers 10,000++

Download13,000++

Gossipgirl_thailand

Followers 4,600++ Friends 11,000++

9

Local Wireless Telecommunication Business


Largest telecom infrastructure in Thailand

Core element in digital era of “IoT”

New business growth Driven toward convergence Operating synergy with mobile

business

New source of revenue Support mobile and fixed

broadband business Partnership model

From Telecom Service Provider to Digital Life Service Provider

Mobile Fixed Broadband

Digital Contents

11Prepared by Group Investor Relations

Business strategies in 2015

Continue to enhance network quality for better customer experience by increasing network capacity

More aggressive 3G handset campaigns for achieving 2G subscriber migration, lowering regulatory fee and defending market share.

Offer more variety of on-top packages to serve needs of different customer segments, leading the way to data monetization

Acquire more spectrums to develop the technology and increase capacity

AIS Fibre is in a beginning stage with insignificant contribution expected in the first year, but rather focusing on service quality and installation ramp-up.


77 provinces97% population

coverage

2014 2Q15 FY15target

Tower 27% 40%

23.8kBase station

device penetration55% 62%

3G

2,500 small cells

29k

70%

19,700 20,500 NA

21.3k


Increase capacity and quality improvement of network

AIS Super WIFI650 Mbps, faster than 4G

0 4K 12K

38K AIS WiFi APs 48K AIS WiFi APs28K AIS WiFi APs

(including 13,200 towers under dispute)

Completed123,000 km Fiber optics 13

• Offer more handset discounts, with free airtime, free

data usage

• 1.1 mn units AIS LAVA + OLA Pop sold in 2Q15

• 77% of subscribers who changed to LAVA were data

users, compared to 36% when before changing.

• New 3G house-branded phone:

AIS LAVA PRO 5.5 and LAVA W1

3G device penetration increased led by AIS Super Combo

46% 49%54% 58% 62%

2Q14 3Q14 4Q14 1Q15 2Q15

3G Handset penetrationon 2.1GHz-License

35% 36% 39%44%

49%

2Q14 3Q14 4Q14 1Q15 2Q15

Smartphone penetrationon 2.1GHz-License


Paving the way for monetization

Expand data users Promote on-top packages

Encourage use of application & content

Supported by 4G

Data usage increased substantially in the last two years

with potential of higher growth from 4G

250 MB

in 1Q13

4G

15

20mn

1H1517mn

1H1413mn

1H13

Volume of UsageMB/ data sub/ mth

1,600 MB

in 2Q15


AIS officially launched Fixed Broadband

Officially launched on 27th April: Bangkok,

Chiang Mai, Nakhon Ratchasima, Udon

Thani, Khon Kaen, Phuket, and Hat Yai

Special package since August offering three

services for AIS Postpaid customers:

- fixed broadband

- AIS Playbox

- AIS fixed line number

16

AIS Fibre progress as of June-15

PortTarget

146,000250,000

FTTB subFTTH sub

Total target

7,6004,300

80,000


AIS 2Q15 & 1H15 Key Financial Highlights

Financial Highlights(Bt million)

2Q14 1Q15 2Q15 YoY QoQ 1H14 1H15 YoY2015

Guidance

Service revenue ex.IC

29,604 30,309 30,468 ▲2.9% ▲0.5% 58,571 60,778 ▲3.8% ▲3%

Voice revenue

16,891 14,872 14,235 ▼16% ▼4.3% 34,218 29,107 ▼15% NA

Non-voicerevenue

10,488 12,787 13,488 ▲29% ▲5.5% 20,055 26,275 ▲31% NA

Sales revenue 5,024 8,288 5,733 ▲14% ▼31% 10,670 14,020 ▲31% ▲10%

Total revenue, ex. Construction

36,481 40,536 38,123 ▲4.5% ▼6.0% 72,930 78,660 ▲7.9% NA

EBITDA 15,804 18,073 18,068 ▲14% 32,258 36,141 ▲12% NA

Net profit 8,475 9,897 9,849 ▲16% ▼0.5% 17,956 19,746 ▲10% NA

Consolidated EBITDA margin

43.3% 44.6% 47.4% ▲4.1% ▲2.8% 44.2% 45.9% ▲1.7% Flat

Capex 7,443 7,165 8,883 ▲19% ▲24% 15,461 16,048 ▲3.8% Bt36bn


Satellite & International Businesses


THAICOM’s Operations

Broadband Satellite

Conventional Satellite

Regional Mobile Phone

Platform Satellite TV

Satellite:

Telephone Network:

Internet & Media and Services:

Revenue Contribution

ICT Service Provider


Thaicom 4 (IPSTAR)

Satellite Fleet

Concession License

Launched 2005 2006 2014 2014 Target 1H16

Type of Satellite Broadband Conventional

Fee20.5%

(Sep 2016 = 22.5% onwards)5.25%

Contract Life (Yr) 30 yr (2021) 20 yr (2032)

Satellite Life (Yr) 15 14 18 18 18

Utilization rate* 57% ~100% ~67% ~58% 13% (pre-sold)

Thaicom 1Launched: 1993



Thaicom 5 Thaicom 6 Thaicom 7

UpcomingIn-orbitDe-orbited

*As of June 30, 2015

Thaicom 8


2014 2015 2016 2017 2018 2019 2020

Fleet Expansion

TC-8

New Satellites

Satellite Manufacturing Commercial

Design Investigation CommercialSatellite Manufacturing

THCOM Moving Forward


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


Broadband business highlights

• Malaysia’s Measat took up the rest of bandwidth capacity• Australia’s NBN sent notification to extend its contract for another 1 year

Lao Telecom• LTC net profit significantly grew by 85% YoY to Bt124m• Supporting LTC in an extension of telecommunication concession for 25 years (since 2022-2046) through

USD60m loan to Shenington

Conventional business highlights• Thailand’s IPM is now on board on TC-5• Number of satellite TV channels increased from 702 channels (YE2014) to 766 channels (112 HD) currently• 100% committed bandwidth utilization on TC-7 • TC-8 is 13% pre-launch sold

End-to-End services• Japan’s Softbank mobile expanded Maritime services on additional 4 ferries • Completed installation of Thailand’s NokAir 3rd aircraft• THAICOM expanded 2nd Screen services for Gossip Girl Thailand

1H15 Key Achievements and Opportunity Growth


THCOM 2Q15 & 1H15 Key Financial Highlights

Financial Highlights(Bt million)

2Q14 1Q15 2Q15 YoY QoQ 1H14 1H15 YoY

Sales & Service revenues 2,967 3,074 2,938 ▼1.0% ▼4.4% 5,812 6,013 ▲3.5%

Satellite and related services

2,158 2,309 2,160 ▲0.1% ▼6.5% 4,261 4,469 ▲4.9%

Gross profit 1,281 1,215 1,181 ▼7.8% ▼2.8% 2,378 2,396 ▲0.8%

EBITDA 1,374 1,343 1,347 ▼2.0% ▲0.3% 2,508 2,690 ▲7.3%

EBIT 724 654 652 ▼9.9% ▼0.3% 1,275 1,305 ▲2.4%

Net profit attributable to Thaicom

498 540 572 ▲15% ▲5.9% 897 1,112 ▲24%

EBITDA margin 46.3% 43.7% 45.8% ▼0.5% ▲2.1% 43.2% 44.7% ▲1.5%

Net margin 16.6% 16.9% 17.7% ▲1.1% ▲0.8% 14.7% 17.5% ▲2.8%



25

Appendix

INTOUCH 2Q15 &1H15 Key Financial Highlights


Financial Highlights Consolidated

(Baht Million) 2Q14 1Q15 2Q15 YoY QoQ 1H14 1H15 YoY

Revenues from sales and services 2,995 3,118 2,990 ▼0.2% ▼4.1% 5,871 6,108 ▲4.0%

Share of profit of investments in associates

3,419 4,005 3,970 ▲16% ▼0.9% 7,239 7,973 ▲10%

Total revenues 6,518 7,318 7,353 ▲13% ▲0.5% 13,514 14,596 ▲8.0%

Cost of sales and service 1,460 1,641 1,541 ▲5.5% ▼6.1% 2,988 3,182 ▲6.5%

SG&A 648 664 622 ▼4.0% ▼6.3% 1,308 1,287 ▼1.6%

EBIT 4,034 4,654 4,623 ▲15% ▼0.7% 8,340 9,277 ▲11%

Net profit attributable to Company 3,504 4,101 4,085 ▲17% ▼0.4% 7,331 8,186 ▲12%

26

INTOUCH 2Q15 &1H15 Key Financial Highlights


Financial Highlights Separate

(Baht Million) 2Q14 1Q15 2Q15 YoY QoQ 1H14 1H15 YoY

Dividends income - 7,461 15 na ▼100% 7,118 7,476 ▲5.0%

SG&A 83 101 88 ▲6.0% ▼13% 185 189 ▲2.2%

EBIT (65) 7,379 (56) ▲14% ▼99% 6,967 7,323 ▲5.1%

Net profit attributable to Company (66) 7,378 (57) ▲14% ▼99% 6,965 7,321 ▲5.1%

27

“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


INTOUCH INVESTOR [email protected]

TEL. +662 118 6912

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intouch holdings plc thailand investor conference conf 7...intouch holdings plc thailand investor...

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