Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Advanced Info Service — Investor Day (2023)
26 slides from Singapore Telecommunications's investor day presentation, 2023
Slide 1: Singtel Investor Day 2023
Singtel Investor Day 2023 Advanced Info Service Plc. DISCLAIMER: Please be informed that this meeting is being recorded. By participating in this meeting, you have allowed AIS to collect, use, or disclose any personal data shared during this meeting by any means. Please do not copy, edit, or modify
Slide 2: Growth recovery amid uncertain market environment
Slow consumer spending recovery with inconsistency across segments Easing inflation and utilities cost pressure for consumers and corporates GROWTH Stable competitive environment RECOVERY AMID in both Mobile and Broadband UNCERTAIN Increasing tourist arrival sporadically MARKET on major tourist citi
Slide 3: Strategic Focus
MOBILE Value-based Offerings 5G Monetization Profitable Market Share BROADBAND Expand to new area Lead with service quality & product bundling 3BB Acquisition 2023 ENTERPRISE Grow in connectivity STRATEGIC FOCUS Upsell opportunity in Cloud Build selected 5G verticals expertise OPERATIONAL EFFICIENCY
Slide 4: 1H23 Performance driven by operational efficiency and value-focus
1H23 Performance driven by operational efficiency and value-focus Core Service Revenue (THB Bn) EBITDA (THB Bn) Net Profit (THB Bn) 66.06 67.43 45.76 45.95 12.62 13.94 1H22 1H23 1H22 1H23 1H22 1H23 +2.1% +3-5% +2.7% Mid-single digit 10% Deliver profit YoY Guidance YoY Guidance YoY growth Net Debt an
Slide 5: Mobile Business: Drive with quality & potential 5G upsides
Mobile Business: Drive with quality & potential 5G upsides Solid performance in Revenue Market Share Revenue recovery from Quality Acquisition (THB bn) 29.5 29.2 29.3 +0.8% QoQ 48.3% 48.5% 48.5% 47.8% +1.0% YoY 2Q22 4Q22 1Q23 2Q23 2Q22 1Q23 2Q23 ARPU bounced back from Cross-sells & Upsells Expanded
Slide 6: Home Broadband: Value-driven ARPU to new areas with scale
Home Broadband: Value-driven ARPU to new areas with scale Rebounded from value package Revenue growth boosted by Potential growth in broadband and product bundling Expanded service coverage penetration & Home pass rate FBB ARPU (THB/subs/month) FBB Revenue (THB bn) % YoY growth 415 22% 16% 13% 11% 1
Slide 7: Enterprise Business: Towards multi-product relationship
Enterprise Business: Towards multi-product relationship Enterprise Revenue Mix Key Products Enterprise non mobile revenue as of 1H23 Other Non-Mobile 40% EDS EDS with SD-WAN AIS CloudX 60% AIS Paragon Platform AIS 5G Solutions 7
Slide 8: Key Updates in the new growth areas
Key Updates in the new growth areas Mobile Broadband Enterprise Digital Business 700MHz 3BB & JASIF GSA Data Center Virtual Bank Collaboration with NT Scale up broadband Growth opportunity in Digital service beyond Strengthen 5G coverage business with widening complimentary service connectivity acro
Slide 9: Sustainability Strategy: Thriving in a greener and inclusive digital world
SUSTAINABILITY STRATEGY THRIVING IN A GREENER AND INCLUSIVE DIGITAL WORLD Drive Digital Economy Promote Digital Inclusion Act on Climate Enable people and businesses to grow Build inclusive and responsible digital Shape a greener future of life for in the digital economy access in our products & ser
Slide 10: Appendix
Appendix
Slide 11: 2Q23 Performance
2Q23 Performance
Slide 12: 2Q23 Key Highlights
2Q23 Key Highlights Cautious economic Mobile rebounded Focus on high-margin recovery with tourism from quality products with expansion while facing acquisition backed by integrated offering to political uncertainty superior quality targeted industries Top-line growth with Continue delivering Effecti
Slide 13: AIS: Towards becoming Cognitive Tech-Co
AIS: Towards becoming Cognitive Tech-Co Unleash Excellence in Digital Customer Experience Enterprise Mobile Fixed Broadband Digital Services non-mobile Business 87% 8.4% 3.9% to core service to core service to core service revenue revenue revenue AIS 5G Cloud Game service Offering higher value Focus
Slide 14: 2Q23: Bottom-line expansion driven by operating performance
2Q23: Bottom-line expansion driven by operating performance Core service revenue (Bt mn) EBITDA (Bt mn) NPAT (Bt mn) (%YoY) 1.0% 15% -2.4% 1.8% (%YoY) -1.1% -4.0% -14% 4.3% (%YoY) 4.3% -0.4% 5.1% 14% Core service revenue (Bt bn) EBITDA (Bt bn) NPAT (Bt bn) 33.9 1.8%YoY 4.3%YoY 14%YoY 33.3 33.5 7.2 1
Slide 15: 1H23: Healthier top-line growth brought in strong profit recovery
1H23: Healthier top-line growth brought in strong profit recovery Core service revenue (Bt mn) EBITDA (Bt mn) (%YoY) 1.2% 13% 1.3% 2.1% (%YoY) 1.0% 1.4% -7.3% 2.7% NPAT (Bt mn) • Core Service Revenue increased 2.1% YoY driven by growth in mobile and FBB following improved economy especially in touri
Slide 16: Mobile: positive momentum with quality focus and growth of tourist usages
Mobile: positive momentum with quality focus and growth of tourist usages Mobile revenue (Bt bn) Total subscriber (mn) Mobile ARPU (Bt/sub/month) Total subscribers 1.0%YoY 1.2%YoY 460 453 455 449 448 0.8%QoQ 58.1 58.8 45.5 45.7 46.0 46.1 45.3 29.2 29.3 215 212 213 210 213 -0.7%YoY 29.2 29.3 29.5 33.
Slide 17: Maintaining network superiority with 5G subscribers reaching 7.8mn
Maintaining network superiority with 5G subscribers reaching 7.8mn 5G network coverage Driving 5G adoption with quality >99% 7.8mn BKK 2Q23 Subscribers 77 provinces >96% $ 10-15% EEC 5G ARPU uplift >87% Improved value through 5G Nationwide adoption Population coverage 17
Slide 18: Home Broadband: expanded coverage while delivering superior service and quality
Home Broadband: expanded coverage while delivering superior service and quality Growth trajectory from genuine customer demand Quality subscriber acquisition in suburban areas 48% 13%YoY 42% 40% 5,566 2,268 2,329 11% 15% 4,925 2,086 2,169 1,971 2,710 2,857 115 2,541 2,598 106 99 2,487 83 61 2Q22 3Q2
Slide 19: Enterprise non-mobile: towards high-margin products for profitability
Enterprise non-mobile: towards high-margin products for profitability Selective growth amid economic uncertainty Momentum remained strong in connectivity services Revenue (Bt mn) %YoY growth Enterprise Data service Cloud, Data center 34% 4.6% (EDS) Cybersecurity, IOT & ICT solutions* %YoY revenue gr
Slide 20: FY23 Guidance: maintained with positive outlook in 2H23
FY23 Guidance : maintained with positive outlook in 2H23 Guidance 1H23 Rationale • Mobile business focusing on profitable market share through superior 5G experience in quality and coverage, value-based differentiation of partnership privileges ecosystems, and personalized real-time offering. Core s
Slide 21: Financial Highlights
Financial Highlights Bt mn 2Q22 1Q23 2Q23 %YoY %QoQ 1H22 1H23 %YoY Mobile revenue 29,217 29,258 29,495 1.0% 0.8% 58,064 58,753 1.2% FBB revenue 2,487 2,710 2,857 15% 5.4% 4,925 5,566 13% Other revenues 1,588 1,564 1,551 -2.4% -0.8% 3,075 3,115 1.3% Core service revenue 33,293 33,531 33,903 1.8% 1.1%
Slide 22: Healthy balance sheet and cash flow to support investment
Healthy balance sheet and cash flow to support investment Balance Sheet 1H23 Cash Flow (Bt bn) (Bt bn) Cash increase Cash decrease Operating Investing Financing Net cash right others A/P spectrum license 41.6 of use 33 32 payable 20.0 39 60 4.6 spectrum -3.7 -3.5 -1.7 -6.3 Assets Liabilities -13.5 -
Slide 23: 2Q23 & 1H23 Revenue Breakdown
2Q23 & 1H23 Revenue Breakdown Mobile revenue Fixed broadband revenue Enterprise and Other revenues (Bt bn) +1.0 % YoY +1.2 % YoY (Bt bn) +15 % YoY (Bt bn) -2.4 % YoY +0.8 % QoQ +13 % YoY -0.8 % QoQ +1.3 % YoY +5.4 % QoQ • Improved YoY and QoQ benefitted from tourist- • Continue robust growth YoY and
Slide 24: 2Q23 & 1H23 Cost Breakdown
2Q23 & 1H23 Cost Breakdown Regulatory fee D&A Network OPEX and NT partnership (Bt bn) % to core service revenue (Bt bn) (Bt bn) -0.4 % YoY +1.2 % YoY — % YoY -0.7 % YoY -1.8 % QoQ +16 % YoY +13% YoY — % QoQ +5.9 % QoQ • Slightly decreased YoY and QoQ and stood • D&A remained flat due to the fully de
Slide 25: Sustainability Awards & Disclosure Standard
Sustainability Awards & Disclosure Standard Disclosure Standard ESG Index & Rating Sustainability Awards SET AWARDS 2022 IDC Future Enterprise Sustainability Excellence Awards Highly Commended 25
Slide 26: IR website and contact details
IR website: https://investor.ais.co.th Email: investor@ais.co.th Tel: +662 029 4443 Sustainability website: https://sustainability.ais.co.th Email: AISSustainability@ais.co.th Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to var