Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Advanced Info Service — Investor Day (May 2016)
13 slides from Singapore Telecommunications's investor day presentation, May 31, 2016
Slide 1: Singtel Investor Day: Advanced Info Service Plc.
Singtel Investor Day Advanced Info Service Plc. 31 May 2016
Slide 2: AIS at a glance: on a path to become Digital Life Service Provider
AIS at a glance: on a path to become Digital Life Service Provider IR; 2% Others; 4% Prepaid 22% voice 23% 34 1Q16 45% 1Q16 Mobile 1Q16 50% 30.3bn 1Q16 46% 39mn 4G/3G 28% Non- 49% 31% 5 voice Postpaid Service revenue Service revenue Subscriber Subscriber Digital Life market share breakdown market sh
Slide 3: Mobile: Mark leadership in mobile broadband
Mobile: Mark leadership in mobile broadband Overall spectrum portfolio supporting 2G/3G/4G 1800MHz 15MHz 2100MHz 15MHz strengthen 55MHz growth in sustain bandwidth of mobile growth and spectrum broadband return 900MHz 10MHz TOT’s 2100MHz 15MHz pending Utilize sufficient amount of Drive up revenue De
Slide 4: Handset competition continues but softened while limited price plan expected to increase ARPU
Handset competition continues but softened while “limited” price plan expected to increase ARPU as of 1Q16 5 million sub migrated to 3G/4G • Keep leading in operator handset market 3.2 million units subsidized • Launched AIS 4G VoLTE at Bt1,990 – Bt3,590 Bt3.4bn used for subsidy “Limited” price Most
Slide 5: Fixed broadband: expanding with technology and product differentiations
Fixed broadband: expanding with technology and product differentiations Fixed broadband 20.6mn total household penetration households 50% in 2015 30% 24% 26% New opportunity 19% 22% 2011 2012 2013 2014 2015 2020 Source: NBTC AIS’ estimation Different product offerings and penetrating underserved dem
Slide 6: Digital content: to help boost data usage
Digital content: to help boost data usage MOBILE GAME VIDEO CLOUD M2M MONEY • Video continues to be a main focus • More contents are added to the platform • Special offer for 4G subscribers to enjoy entertainment contents MOBILE Amount (Baht) Example of “any ID” MONEY 150 Pay to: (any ID) • , one-st
Slide 7: 2016 Guidance (under revision)
2016 Guidance (under revision) • 2016 guidance remains unchanged at this point of time. Service revenue (ex IC) Flat Device sales Flat with 3-4% handset margin EBITDA margin 37-38% CAPEX Bt40bn Network D&A to decline 25% D&A Licenses amortization of Bt3.3bn Dividend Maintain 100% payout ratio 7
Slide 8: Appendix
APPENDIX 8
Slide 9: 1Q16 Highlights
1Q16 Highlights • Amidst slow economy and intense competition led by handset subsidy, AIS’s service revenue remained flat, -0.5% YoY and +0.9% QoQ. • AIS 4G was launched on 26 Jan 2016 while 3G network has been ramped up. • Handset subsidy was more aggressive by all operators. For AIS, five million
Slide 10: 1Q16 Financial highlights
1Q16 Financial highlights Bt million 1Q15 4Q15 1Q16 % YoY % QoQ Service revenue ex. IC 30,309 29,887 30,148 ▼0.5% ▲0.9% Sales revenue 8,288 8,422 5,663 ▼32% ▼33% Total revenue ex. construction 40,536 39,784 37,252 ▼8.1% ▼6.4% Cost of service ex. IC 13,704 10,578 12,693 ▼7.4% ▲20% Total SG&A 4,676 5,
Slide 11: Handset subsidy pressured EBITDA and net profit
Handset subsidy pressured EBITDA and net profit EBITDA margin 1Q16 – EBITDA (YoY) (Bt mn) Conso. EBITDA Service EBITDA Increase from Impact of -26% YoY margin margin* Bt2,208mn handset USO fee recognition -22% QoQ 18,073 subsidy 55.0% 161 96 290 338 121 13,415 44.6% 42.5% 3,404 248 36.0% 1Q15 1Q16 1
Slide 12: Trend of higher data usage reflected in operational stats
Trend of higher data usage reflected in operational stats ARPU (Bt/sub/month) postpaid prepaid Total of 38.9mn subscribers in 1Q16 629 627 630 612 608 Ending subscriber (mn) postpaid prepaid 178 188 192 195 194 36.9 34.8 32.4 33.1 33.5 MOU (minute/sub/month) 5.1 5.2 5.4 5.4 5.4 355 342 339 330 286 3
Slide 13: Disclaimers
Disclaimers Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical fact