Maxis Bhd. · MYX:MAXIS
Maxis Bhd — Q4 2014 Earnings Presentation
23 slides from Maxis Bhd's earnings presentation, Feb 6, 2015
Slide 1: Results 4Q 2014 / 6 February 2015
Results 4Q 2014 / 6 February 2015 1
Slide 2: Ending FY2014 with positive operational momentum
Ending FY2014 with positive operational momentum TRANSFORMING INTO A SERVICE REVENUE DIGITAL DATA COMPANY STRENGTHENS 8.8 million STRONG CUSTOMER +2.2% QoQ MOBILE INTERNET USERS TRACTION • +1.5% prepaid revenue +559k RGS* QoQ 1.24 million • +2.4% postpaid revenue LTE DEVICES • Strong product portfol
Slide 3: Solid end to the year
Solid end to the year • Positive revenue impact from -0.7% prepaid RGS growth and MaxisONE Plan +2.2% • Mobile internet revenue +8.4% QoQ • Bundled plans mitigating voice/SMS decline • Fixed Enterprise and Integrated 2,108 2,037 2,049 2,049 2,094 Services (formerly Home) growing at steady pace 4Q13
Slide 4: 3rd consecutive quarter of prepaid revenue uptrend supported by RGS growth and stable ARPU
rd 3 consecutive quarter of prepaid revenue uptrend supported by RGS growth and stable ARPU 9,624 • Added 536k revenue generating 9,528 subscribers (RGS) 9,238 9,042 9,080 - #Hotlink now >50% of RGS base - Under-served segments gaining 35 35 traction 34 33 33 • Strong MI uptake compensating SMS decl
Slide 5: MaxisONE Plan and seasonality contributing to postpaid improvement
MaxisONE Plan and seasonality contributing to postpaid improvement • MaxisONE Plan continued to have strong subscriber traction and good 2,840 2,849 2,828 ARPU contribution 2,794 2,769 - Subscriber base >250k 101 - ARPU ~RM150 97 97 • Data penetration and usage rising 96 94 - MI revenue +7.4% QoQ; d
Slide 6: Mobile internet revenue accelerating on worry free propositions and higher smart-phone penetration
Mobile internet revenue accelerating on worry free propositions and higher smart-phone penetration 32.0% • Mobile internet share of mobile 28.9% revenue at 32%; 8.8 million mobile 26.8% 25.9% internet users 24.7% • Blended smart-phone penetration at 117 99 91 87 110 57%; up 3% points QoQ; driven by
Slide 7: Continued strong focus on unmatched customer experience
Continued strong focus on unmatched customer experience 1 Distribution transformation 2 Seamless retail experience 3 Self serve 4 Continuous service experience enhancement 7 7
Slide 8: Investment to support commitment towards best network experience
Investment to support commitment towards best network experience • 4G LTE approaching 1/3 population coverage 2014 Capex/Sales @ 2013 13.6% • 2G and 3G modernised population Capex/Sales @ 9.0% 25.0% coverage >75% 12.6% 16.3% 530 - Covering selected market centres and 5.6% 7.4% secondary towns • Cont
Slide 9: EBITDA and margin development in-line with higher spend to grow business
EBITDA and margin development in-line with higher spend to grow business 2014 EBITDA Margin @ 50.4% • 48.6% service revenue EBITDA 2013 EBITDA Margin @ 47.4% margin 52.2% 51.8% 50.6% - Comparative margin in 3Q14 was 47.1% 52.7% 43.7% - RM44 million of staff cost reversal in 3Q14 971 1,073 1,086 1,07
Slide 10: Profit After Tax
Profit After Tax 24.4% 23.9% • Lower PAT in-line with lower 23.0% EBITDA this quarter 21.0% 19.7% • 4Q PAT includes RM84 million in -10.1% accelerated depreciation net of tax -15.2% 517 494 480 466 419 4Q13 1Q14 2Q14 3Q14 4Q14 PAT Margin (%) PAT (RM mn) 1010 * Normalised for one-off items after acco
Slide 11: FY2014 review
FY2014 • Entering 2014; lots to change • Strong progress in stabilizing and turning-around business • Operational indicators trending up • Service revenue back to positive growth • Solid end to the year; positive momentum going into 2015 11 11
Slide 12: FY2015 Priorities
FY2015 Priorities 1 Accelerate data adoption and monetisation 2 Commitment to superior network and service experience 3 Re-shape distribution/retail network 4 Continuous focus on operational efficiency and excellence 1212
Slide 13: FY2015 Outlook
FY2015 Outlook • Service revenue growth at low single digits • EBITDA at similar level to FY2014 • Base capex spend ~RM1.1 billion • Dividend as per policy; target payout ratio of not less than 75% of consolidated PAT 1313
Slide 14: Thank you
4 thank you 1 Internet plan. 0 limits at home and on-the-go.
Slide 15: Disclaimer
Disclaimer -looking statements. Forward-looking statements can be identified by the use of forward- Forward-looking statements made in this presentation involve known and unknown risks, uncertainties and other factors which may cause actual future performance, outcomes and results to differ material
Slide 16: Appendices
APPENDICES 1616
Slide 17: Important definitions/notations
Important definitions/notations • Service Revenue: Group revenue excluding device & hubbing revenues • EBITDA margin on Service Revenue: EBITDA that has been adjusted for costs solely related to the provision of service revenue defined above • Normalised EBITDA margin: Normalised for one-off items i
Slide 18: Consolidated Income Statement
Consolidated Income Statement Reported Reported QoQ Normalised Normalised QoQ Reported Reported YoY RM mn 3Q14 4Q14 chg 3Q14 4Q14 chg FY2013 FY2014 chg REVENUE 2,065 2,123 +2.8% 2,065 2,123 +2.8% 9,084 8,389 -7.7% Direct Exp (652) (696) (653) (696) (3,089) (2,707) Indirect Exp (343) (427) (342) (427
Slide 19: Cash Flow Statement
Cash Flow Statement RM mn 1Q14 2Q14 3Q14 4Q14 FY2014 FY2013 RM mn 3Q14 4Q14 Cash flow from operating 447 1,178 1,146 1,336 4,107 3,477 Debt# 8,785 8,798 activities Cash 1,476 1,531 Cash flow used in investing Net Debt 7,308 7,267 activities (155) (91) (389) (597) (1,232) (801) Purchase of property,
Slide 20: Key Financial Data
Key Financial Data REPORTED 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 x FY2013 FY2014 Total Revenue 2,327 2,294 2,239 2,224 2,119 2,082 2,065 2,123 9,084 8,389 Total Expenses 1,205 1,129 1,187 1,253 1,046 996 995 1,123 4,774 4,160 - Direct 801 787 738 763 707 652 652 696 3,089 2,707 - Indirect 404 342
Slide 21: Key Financial Data
Key Financial Data FINANCIALS 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 FY2013 FY2014 Total Revenue 2,327 2,294 2,239 2,224 2,119 2,082 2,065 2,123 9,084 8,389 - Service 2,143 2,136 2,127 2,108 2,037 2,049 2,049 2,094 8,514 8,229 - Mobile 2,066 2,062 2,051 2,024 1,953 1,958 1,954 1,992 8,203 7,858 - E
Slide 22: Key Operational Data
Key Operational Data CUSTOMERS (Market Definition) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Mobile Subs 14,136 13,873 13,213 12,893 12,602 12,401 12,415 12,913 - Prepaid 10,780 10,497 9,845 9,528 9,238 9,042 9,081 9,624 - Postpaid 3,356 3,376 3,368 3,365 3,364 3,359 3,334 3,289 WBB 673 663 636 596 57
Slide 23: Key Operational Data
Key Operational Data SMART PHONE PENETRATION (%) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Blended 25 29 33 38 43 48 54 57 - Prepaid 20 23 27 32 38 43 50 54 - Postpaid 49 53 56 59 61 64 67 67 2323