Slide 1: StarHub 4Q & FY-2016 Results
S t a r H u b 4 Q & F Y- 2 0 1 6 R e s u l t s 3 February 2017
Slide 2: Forward-looking Statements
Forward-looking Statements The following presentation may contain forward-looking statements by StarHub Ltd (“StarHub”) relating to financial trends for future periods. Some of the statements in this presentation which are not historical facts are statements of future expectations with respect to th
Slide 3: Management Team
Management Team TAN Tong Hai CEO Dennis CHIA Kevin LIM Howie LAU CFO CCO 3 CMO
Slide 4: Agenda
Agenda FY2016 Highlights Financial Highlights Business Highlights 2017 Outlook 4
Slide 5: Overview (FY-2016 vs FY-2015)
Overview (FY-2016 vs FY-2015) Financial Operational • Total revenue decreased 2% • Revenue growth in Residential Broadband & Enterprise Fixed • Service revenue stable • Subscriber growth in both pre & • EBITDA decreased 3% post-paid Mobile • EBITDA margin at 31.2% • Low post-paid mobile churn rate o
Slide 6: Key Financial Highlights
Key Financial Highlights S$M 4Q-2016 4Q-2015 Change FY-2016 FY-2015 Change Total Revenue 635 634 0% 2,397 2,444 -2% Service Revenue 567 563 1% 2,209 2,216 0% EBITDA 136 157 -14% 690 713 -3% EBITDA Margin 23.9% 27.9% -3.9%pts 31.2% 32.2% -1.0%pts Taxation (8) (7) 21% (69) (68) 2% Net Profit After Tax
Slide 7: Revenue Contribution
Revenue Contribution Quarter ended 31 Dec FY ended 31 Dec 2016 2015 Incr / (Decr) 2016 2015 Incr / (Decr) Revenue S$m S$m S$m % S$m S$m S$m % Mobile 311.8 313.0 (1.2) (0.4) 1,214.6 1,239.8 (25.2) (2.0) Pay TV 93.9 100.0 (6.1) (6.1) 377.8 391.0 (13.2) (3.4) Broadband 54.2 52.1 2.1 3.9 216.8 200.3 16.
Slide 8: Revenue Mix
Revenue Mix Quarter ended 31 Dec FY ended 31 Dec 2016 2015 2016 2015 Revenue mix Mix % Mix % Mix % Mix % Mobile 49.1 49.4 50.7 50.7 Pay TV 14.8 15.8 15.8 16.0 Broadband 8.5 8.2 9.0 8.2 Enterprise Fixed 16.9 15.5 16.7 15.8 Sales of equipment 10.7 11.1 7.8 9.3 Total 100.0 100.0 100.0 100.0 8 • Numbers
Slide 9: Hubbing Scorecard
Hubbing Scorecard Hubbing Households (‘000) 774 767 245 235 217 210 312 322 4Q-2015 4Q-2016 Single HHs Double HHs Triple HHs 9 * Numbers may not add up due to rounding.
Slide 10: Financial Highlights
FY2016 Highlights Financial Highlights Business Highlights 2017 Outlook 10
Slide 11: EBITDA & EBITDA Margin
EBITDA & EBITDA Margin (S$M) 32.2% 31.2% 27.9% 23.9% 713 690 157 183 192 179 136 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 EBITDA Margin as % of Service Revenue * Numbers may not add up due to rounding. 11
Slide 12: Cost Of Sales
Cost Of Sales (S$M) 48% 47% 43% 41% 1,053 975 150 117 416 410 305 296 42 230 217 232 25 119 33 30 30 112 487 448 93 100 105 143 104 88 97 159 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Cost of Equipment Cost of Services Traffic Expenses Cost of Sales / Revenue * Numbers may not add up d
Slide 13: Other Operating Expenses
Other Operating Expenses (S$M) 43% 43% 41% 40% 1,029 996 134 145 580 631 256 275 251 251 247 42 33 35 28 39 144 158 150 153 170 271 265 65 66 66 66 67 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Depreciation Other G&A Marketing & Promotion Operating Expense / Revenue * Numbers may not ad
Slide 14: Net Profit After Tax
Net Profit After Tax (S$M) 372 341 109 81 93 86 54 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 * Numbers may not add up due to rounding. 14
Slide 15: Capex (cash payments)
Capex (cash payments) (S$M) 19.9% 16.3% 15.3% 13.5% 12.0% 367 80 329 287 150 126 103 42 48 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Capex/Revenue Capex excludes spectrum/Revenue * Numbers may not add up due to rounding. 15
Slide 16: Free Cash Flow
Free Cash Flow (S$M) 216 184 90 137 2 20 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 (45) * Numbers may not add up due to rounding. 16
Slide 17: Business Highlights – Mobile
FY2016 Highlights Financial Highlights Business Highlights – Mobile 2017 Outlook 17
Slide 18: Mobile (FY-2016 vs FY-2015)
Mobile (FY-2016 vs FY-2015) Total customer base expanded 119k Post-paid ARPU at S$70 18
Slide 19: Mobile Customer Base
Mobile Customer Base Customers (‘000) 2,275 2,307 2,188 2,198 2,235 920 40% 862 855 872 902 1,325 1,344 1,364 1,373 1,387 60% 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 Post-paid Pre-paid * Numbers may not add up due to rounding. 19
Slide 20: Mobile Revenue
Mobile Revenue Mobile Revenue (S$M) 1,239.8 1,214.6 313.0 298.1 305.3 299.4 311.8 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 * Numbers may not add up due to rounding. 20
Slide 21: Mobile ARPU
Mobile ARPU Pre-paid ARPU (S$ per month) 17 17 18 16 16 15 16 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Post-paid ARPU (S$ per month) 72 69 71 69 70 70 70 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 21
Slide 22: Mobile Non-Voice & Churn Trend
Mobile Non-Voice & Churn Trend Post-paid Non-Voice Services (% of ARPU) Post-paid Monthly Churn Rate (%) 62.1 64.9 1.2 58.2 59.7 60.1 1.0 0.9 0.9 0.8 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 22
Slide 23: Business Highlights – Pay TV
FY2016 Highlights Financial Highlights Business Highlights – Pay TV 2017 Outlook 23
Slide 24: Pay TV (FY-2016 vs FY-2015)
Pay TV (FY-2016 vs FY-2015) Revenue decreased 3% ARPU at S$51 Customer base decreased 38k 24
Slide 25: Pay TV Base & Churn
Pay TV Base & Churn Customers (‘000) Average Monthly Churn Rate (%) 536 528 518 507 498 1.0 1.0 0.9 0.8 0.8 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 25
Slide 26: Pay TV Revenue & ARPU
Pay TV Revenue & ARPU Pay TV Revenue (S$M) 391.0 377.8 100.0 94.9 95.4 93.6 93.9 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Residential Pay TV ARPU (S$ per month) 51 51 52 51 51 51 51 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 26 * Numbers may not add up due to rounding.
Slide 27: Business Highlights – Broadband
FY2016 Highlights Financial Highlights Business Highlights – Broadband 2017 Outlook 27
Slide 28: Broadband (FY-2016 vs FY-2015)
Broadband (FY-2016 vs FY-2015) Revenue increased 8% ARPU increased S$3 to S$37 Customer base decreased 3k 28
Slide 29: Broadband Base & Churn
Broadband Base & Churn Customers (‘000) Average Monthly Churn Rate (%) 476 473 473 475 473 1.2 1.1 1.1 1.0 0.9 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 29
Slide 30: Broadband Revenue & ARPU
Broadband Revenue & ARPU Broadband Revenue (S$M) 216.8 200.3 52.1 53.5 54.4 54.7 54.2 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Residential Broadband ARPU (S$ per month) 35 36 37 37 37 37 34 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 30 * Numbers may not add up due to roun
Slide 31: Business Highlights – Enterprise Fixed
FY2016 Highlights Financial Highlights Business Highlights – Enterprise Fixed 2017 Outlook 31
Slide 32: Enterprise Fixed (FY-2016 vs FY-2015)
Enterprise Fixed (FY-2016 vs FY-2015) Data & Internet revenue increased 5% Voice revenue decreased 2% 32
Slide 33: Enterprise Fixed
Enterprise Fixed Enterprise Fixed Revenue (S$M) 384.9 400.0 98.0 95.8 98.6 98.4 107.2 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 * Numbers may not add up due to rounding. 33
Slide 34: Voice/Data & Internet
Voice/Data & Internet Voice Revenue (S$M) 53.8 52.8 13.0 13.7 13.1 12.8 13.2 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 Data & Internet Revenue (S$M) 331.1 347.2 85.0 82.1 85.5 85.6 94.0 4Q-2015 1Q-2016 2Q-2016 3Q-2016 4Q-2016 FY-2015 FY-2016 34 * Numbers may not add up due to rounding.
Slide 35: 2017 Outlook
FY2016 Highlights Financial Highlights Business Highlights 2017 Outlook 35
Slide 36: FY2017 Outlook
FY2017 Outlook Revenue: Service revenue to be at about 2016’s level EBITDA: EBITDA margin on service revenue to be between 26 - 28% CAPEX: Cash capex to be about 13% of total revenue (excludes spectrum payments) Dividend: Propose final dividend of 5.0 cents per share for FY2016 Intend to pay
Slide 37: Investor Relations Contact
Investor Relations Contact Investor Relations Contact For IR-related queries, please call or email: Jeannie ONG Eric LOH Chief Strategic Partnership & IR Officer AVP, IR DID: +65 6825 5168 DID: +65 6825 5171 jeannieo@starhub.com / ir@starhub.com ericloh@starhub.com / ir@starhub.com 37