Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — M1 — FY2016 Earnings Presentation
23 slides from Singapore Exchange's earnings presentation, Jan 24, 2017
Slide 1: FY16 Results Presentation
FY16 Results Presentation 24 January 2017
Slide 2: Forward looking statements – Important note
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 o
Slide 3: Overview of FY2016 results
Overview of FY2016 results • Service revenue was S$806m Financial highlights • EBITDA margin at 38.7% of service revenue For 2016 • Net profit after tax declined 16.1% YoY to S$150m • Mobile customer base increased 91,000 YoY to 2.02m Performance • Mobile data revenue was 54.0% of service revenue hi
Slide 4: Agenda
Agenda Financial highlights Performance highlights Outlook 3
Slide 5: Revenues (S$m)
Revenues (S$m) 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 Service revenue (S$m) 209 203 204 197 201 822 806 FY2016 vs FY2015 -8.3% 1,157 • Handset sales (-23.7%): 1,061 Lower sales volume and selling price +1.9% 335 Handset sales 255 • Fixed services revenue +26.0% 86 104 (+21.4%): Higher fibre Fixed servic
Slide 6: Cost of sales (S$m)
Cost of sales (S$m) -13.1% FY2016 vs FY2015 531 +11.3% • Handset costs (-17.9%): 462 Lower sales volume and +64.0% unit cost 419 Handset 167 costs • Wholesale costs of fixed 150 344 Traffic services (+17.5%): 135 Expenses Higher fibre customer 122 105 102 base 88 Other costs 76 73 60 39 39 Wholesale
Slide 7: Other operating expenses (S$m)
Other operating expenses (S$m) +2.5% 419 FY2016 vs FY2015 409 +4.4% Depreciation & amortisation • Depreciation & 118 127 amortisation expenses Staff costs (+7.0%): Higher fixed +3.6% asset base Facilities 106 110 expenses 105 100 103 118 115 Leased circuit • Facilities expenses 32 32 33 (+5.3%): Hig
Slide 8: EBITDA & net profit after tax
EBITDA & net profit after tax EBITDA (S$m) & margin Profit after tax (S$m) & margin on service revenue on service revenue 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 EBITDA margin PAT margin 42.2% 40.9% 40.3% 37.8% 35.8% 41.6% 38.7% 20.8% 20.9% 20.1% 17.4% 15.8% 21.7% 18.6%
Slide 9: Capex & Cash flows
Capex & Cash flows Capex (S$m) Operating and free cash flows (S$m) 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 Operating cash 31 102 85 98 50 239 335 flow Free cash flow +22.6% / +83.2% Spectrum rights payment +183.4% 64 +5.2% +39.5% / -87.5% -1.4% +55.1% 130 64 106 133 141 64 50 42 (11) 9 6 38 35 41 27 4Q15
Slide 10: Financial leverage
Financial leverage S$m FY2015 FY2016 Change Cash & cash equivalents 10.0 11.0 10.5% Net debt 343.8 390.0 13.4% Net assets 413.2 403.4 -2.4% Net debt/equity (x) 0.8 1.0 16.2% Net debt/EBITDA (x) 1.0 1.2 30.7% EBITDA/Interest (x) 69.5 46.2 -33.5% Net assets per share (cents) 44.1 43.4 -1.6% EPS - dilu
Slide 11: Agenda
Agenda Financial highlights Performance highlights Outlook 10
Slide 12: Mobile customers
Mobile customers Postpaid customer base (‘000) Prepaid customer base (‘000) +52 1,222 1,232 1,247 1,195 1,208 +39 758 762 772 733 734 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 11
Slide 13: Postpaid mobile
Postpaid mobile Postpaid mobile revenue (S$m) Postpaid monthly ARPU (S$) ARPU allocated to handset sales -3.6% -7.3% 591 +1.1% 570 -6.0% -4.8% 61.6 59.9 61.7 58.6 56.5 57.1 58.0 +3.2% 149 145 145 142 138 53.8 51.7 51.6 54.2 48.3 49.5 50.3 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 4Q15 1Q16 2Q16 3Q16 4Q16 F
Slide 14: Prepaid mobile
Prepaid mobile Prepaid mobile revenue (S$m) Prepaid monthly ARPU (S$) -8.6% -17.9% 77 70 -4.2% -17.0% -15.1% 14.7 -6.9% 14.0 13.2 12.3 12.0 12.2 11.5 19 19 18 17 16 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 13
Slide 15: Mobile market share
Mobile market share Overall market share* Postpaid & Prepaid market share* Postpaid 24.6% 24.6% 24.7% 24.7% 24.7% 4Q15 1Q16 2Q16 3Q16 Oct-16 23.4% 23.5% 23.7% 23.7% 23.7% Prepaid 21.7% 21.8% 22.2% 22.1% 22.3% 4Q15 1Q16 2Q16 3Q16 Oct-16 4Q15 1Q16 2Q16 3Q16 Oct-16 * - Based on published statistics ava
Slide 16: Postpaid mobile
Postpaid mobile Acquisition cost Monthly churn rate (postpaid) per postpaid customer (S$) +10.1% +22.7% 438 +1.7% 398 363 369 357 321 329 1.2% 1.1% 1.0% 1.0% 1.0% 0.9% 0.9% 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 Note: Cash basis 15
Slide 17: Tiered data plans & mobile data contribution
Tiered data plans & mobile data contribution Data contribution Tiered data plans to mobile service revenue Postpaid customers on tiered data plans Percentage of tiered data plan customers exceeding primary data bundles 25% 26% 28% 54.8% 25% 24% 53.1% 54.0% 54.2% 54.0% 51.2% 46.3% 75% 76% 77% 74% 74%
Slide 18: Fixed services
Fixed services Fibre customer base (‘000) Fibre monthly ARPU (S$) +32 -9.3% 160 -5.7% -3.4% 152 145 136 47.5 46.9 46.7 45.1 45.7 45.1 128 43.1 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 17
Slide 19: International call services
International call services International retail minutes International call services (million mins) revenue (S$m) -14.3% 813 696 -10.8% +0.7% -3.2% 69 +6.7% 61 +3.7% 186 187 172 162 175 16 16 15 15 15 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 18
Slide 20: Agenda
Agenda Financial highlights Performance highlights Outlook 19
Slide 21: Opportunities and strategy
Opportunities and strategy • Internet-based ecosystems Opportunities • Growing IoT services • Smart nation • Strengthen telco core Continual investments: 4.5G/5G, HetNet and NB-IoT Expand reach of fibre infrastructure to corporates Digitisation of operations Improve efficiency and time-to-ma
Slide 22: Outlook and estimates
Outlook and estimates • Opportunities exist amidst challenging environment Build on strong foundation and invest ahead Outlook & New services will take time to scale estimates • Capex to be around S$170m for FY2017 • Dividend policy Maintain at least 80% payout ratio 21
Slide 23: Thank you
Thank you 22