Dialog Axiata PLC · CSELK:DIAL.N0000

Dialog Axiata — Dialog Telekom — Q3 2005 Earnings Presentation

38 slides from Dialog Axiata's earnings presentation, 2005

  1. Slide 1: ATI Company

    > > ATI Company

  2. Slide 2: Business Performance - Q3 2005

    Business Performance - Q3 2005

  3. Slide 3: Agenda

    Agenda „ Highlights „ Financials „ Key Performance Indicators „ Going Forward….. „ Conclusion

  4. Slide 4: Highlights – Q3 2005

    Highlights – Q3 2005

  5. Slide 5: Highlights - YTD

    Highlights - YTD Key Financials Revenue Rs 12,813 Mn EBITDA Rs 6,885 Mn Profit after Tax Rs 5,147 Mn EPS Rs 1.52 Subscriber Base Total New Additions 567k Post paid 92k Pre paid 475k Operational Results Blended ARPU Rs 711

  6. Slide 6: Financials - A Snapshot

    Financials - A Snapshot Nine Months ended September 2005

  7. Slide 7: Profit & Loss

    Profit & Loss (All figures in Rs. Mn) Q3 04 Q3 05 YTD 04 YTD 05 Revenue 2,979 4,674 8,022 12,813 YoY Growth (%) 57% 60% Direct Costs 1,025 1,651 2,793 4,246 YoY Growth (%) 61% 52% Gross Profit 1,954 3,023 5,228 8,567 YoY Growth (%) 55% 64% Gross Margin (%) 66% 65% 65% 67% OPEX 735 1,273 1,974 3,258

  8. Slide 8: Revenue Growth

    Revenue Growth Revenue has grown at 60% during nine months ended 30 September 2005 compared to 30 September 2004. 14,000 12,813 12,000 10,000 8,022 60% 8,000 Rs Mn 6,000 4,674 4,000 2,979 57% 2,000 - 04 05 04 05 3 3 D D Q Q YT YT

  9. Slide 9: Revenue Mix (Nine Months comparison)

    Revenue Mix ( Nine Months comparison) 2004 2005 International International Termination Termination Revenue Revenue 9% 7% Equipment , Equipment , Post-paid Post-paid Accessories + Accessories + Revenue Revenue other Revenue other Revenue 38% 41% 6% 3% Pre-paid International International Revenue Roa

  10. Slide 10: Revenue Mix

    Revenue Mix Revenue Composition (Rs. Million) Q3 04 % Q3 05 % YTD 04 % YTD 05 % Change % Post-paid Revenue 833 28% 1,573 34% 3,052 38% 5,235 41% 71% International Roaming Revenue 723 24% 770 16% 1,328 17% 1,421 11% 7% Pre-paid Revenue 807 27% 1,598 34% 2,572 32% 4,609 36% 79% Equipment, Accessories+

  11. Slide 11: Direct Costs

    Direct Costs Dialog has realised scale advantages to minimize the growth of direct costs. Direct Cost Breakdown YTD 04 % YTD 05 % Change % (All amounts in Rs. Million) Network Related Costs 2,462 88.1% 3,736 88.0% 52% As a % of Revenue 30.7% 29.2% Customer Related Costs 329 11.8% 500 11.8% 52% As a

  12. Slide 12: International Telecom Operator Levy

    International Telecom Operator Levy „ Imposed in March 2003 with the Liberalization of International Services via ‰ Special direction by the Minister of Telecommunications dated 21/ 02/03 Figures in US Cents 03/2003-03/2004 From 04/2004 Incoming Local Access Fee 7.20 5.20 Contribution to Vishva Gram

  13. Slide 13: Direct Costs relative to Revenue

    Direct Costs relative to Revenue Total direct costs as a proportion of revenue has dropped by 2% for the nine months ended 30 September 05 compared to the same period in 2004. 35.00% 30.00% Network related 25.00% Customer related 20.00% 15.00% Others 10.00% 5.00% 0.00% YTD 04 YTD 05

  14. Slide 14: Operating Costs relative to Revenue

    Operating Costs relative to Revenue „ Cost of Manpower maintained < 6% OPEX Breakdown YTD 04 % YTD 05 % Change % (All amounts in Rs. Million) Manpower 469 23.8% 725 22.2% 54.4% As a % of Revenue 5.9% 5.7% Maintenance 364 18.5% 564 17.3% 54.7% As a % of Revenue 4.5% 4.4% Energy & Fuel 36 1.8% 59 1.8%

  15. Slide 15: Operating Costs relative to Revenue

    Operating Costs relative to Revenue 14.00% 12.00% Manpower 10.00% Maintenance Energy & Fuel 8.00% Material Selling Expenses 6.00% Incidental 4.00% 2.00% 0.00% YTD 04 YTD 05

  16. Slide 16: EBITDA Growth

    EBITDA Growth EBITDA has grown at 56% during the nine months ended 30 September 2005 compared to 30 September 2004 8,000 6,885 7,000 6,000 56% 5,000 4,426 Rs Mn 4,000 3,000 2,331 2,000 1,649 41% 1,000 - 04 05 04 05 3 3 D D Q Q YT YT

  17. Slide 17: PAT Growth

    PAT Growth • Net Profit has grown at 64% to Rs 5.15 Billion for nine months ended 30 September from Rs 3.14 Billion compared to the same period in 2004. • NP Margin has improved from 39% (in Q3 04) to 40% (in Q3 05) 6000 41% 40% 40% 5000 5147 39% 4000 39% 3144 64% 38% Rs. Mn. 3000 Margin 37% 2000 17

  18. Slide 18: Cumulative PAT (Rs Mn)

    PAT trend 2004 Vs 2005 6,000 5,000 Cumulative PAT (Rs Mn) 4,000 2004 3,000 2005 2,000 1,000 - Q1 Q2 Q3 Q4

  19. Slide 19: Summary Balance Sheet

    Summary Balance Sheet 30 September (all amounts in Rs. Million) 2005* 2004 Fixed Assets 18,525 12,095 Intangible Assets 126 100 Cash and Bank 7,345 2,566 Net Working Capital excl cash 1,888 24 Non Current Liabilities (66) (3,448) Bank Borrowings (10,098) (3,580) Net Assets 17,721 7,756 Share Capital

  20. Slide 20: Capex Composition – (Core & Non Core Assets)

    Capex Composition –(Core & Non Core Assets) Invested a further Rs 3.8 Billion in the mobile network infrastructure compared to previous year 7,000 6,000 Rs. Mn. 5,000 4,000 6,006 3,000 2,000 2,225 1,000 539 163 - YTD 2004 YTD 2005 Operational capex Netw ork Related

  21. Slide 21: Gearing Ratio as of 30th September 2005

    Gearing Ratio as of 30th September 2005 36% Debt Equity 64%

  22. Slide 22: Cash Flow Summary

    Cash Flow Summary (All amounts in Rs Million) YTD 04 YTD 05 Profit Before Tax 3,174 5,177 Adjustments for: Interest Cost 116 127 Depreciation 1,056 1,402 Amortisation 93 134 Retirement benefit obligation 5 18 Other Adjustments 326 (659) (incl exchange diff, Profit on sale of FA & Changes in WC) Cash

  23. Slide 23: Lenders and Cash position as of 30 September 2005

    Lenders Outstanding as at Loan Amount 30th September 2005 All amounts in US$Mn Citi/Commercial Syndicated loan 21.00 12.03 Standard Chartered Bank 25.00 24.67 International Finance Corporation 30.00 15.00 HSBC 25.00 24.43 (An agreement was signed with IFC in ‘04 for a loan facility of US$30Mn, with

  24. Slide 24: Performance Indicators

    Performance Indicators

  25. Slide 25: Earnings per Share

    Earnings per Share '30 September Rs (Mn) 2005 2004 PAT 5,147 3,144 Dividend on preference shares - (81) Net Income Applicable to ordinary shares 5,147 3,063 Par Value Rs 1/- Rs 10/- Ordinary Shares at the beginning(Mn) 370 37 Issuance of shares during the period(Mn) 7,403 - Weighted average number o

  26. Slide 26: Balance Sheet Indicators

    Balance Sheet Indicators KPI YTD 2005 YTD 2004 Net tangible assets per share(Rs.) 2.39 175.33 Gearing Ratio 0.36 0.32 Debt to EBITDA ratio (times) 1.05 0.54 Return on Equity (%) 39% 65% Return on Capital Employed (%) 22% 24% Earnings per Share (Rs.) 1.52 82.8 Current Ratio (times) 3.19 1.79 *No of o

  27. Slide 27: Key Operational Indicators - Subscriber Breakdown

    Key Operational Indicators - Subscriber Breakdown Pre paid subscriber base increased by 64% & post paid by 44% for nine months ended 30 September 2005 compared to 30 September 2004. 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 916,619 800,000 1,505,203 600,000 1,178,355 1,336,990 400,

  28. Slide 28: Key Operational Indicators – Dialog Subscriber Growth

    Key Operational Indicators – Dialog Subscriber Growth 2,500 Dialog Subscribers Dialog Growth 2,000 Subscribers '000 1,500 1,000 500 0 2000 2001 2002 2003 2004 YTD 05

  29. Slide 29: Key Operational Indicators – Dialog Subscriber Growth vs Industry

    Key Operational Indicators – Dialog Subscriber Growth vs Industry 3,000 2,775 2,493 Subscribers' 000 2,500 2,012 2,000 1,925 1,925 1,740 Dialog Subscribers 1,539 Market Subscribers 1,500 1,207 1,000 500 0 04 05 05 05 05 D D 1 2 3 YT YT Q Q Q Source:TRC & Central Bank annual report on Industry Subscr

  30. Slide 30: Key Operational Indicators – ARPU (post & pre)

    Key Operational Indicators –ARPU(post & pre) Monthly blended ARPU as of Q3 2005 has increased by 6.4% compared to Q3 2004 1,800 1,600 1,400 1,200 Rs. 1,000 Post 800 Pre 600 400 200 - Q3 04 Q1 05 Q2 05 Q3 05 Ytd 04 Ytd 05 Actual Actual

  31. Slide 31: Way forward

    Way forward TM TELEKOM

  32. Slide 32: Way forward…

    Way forward… „ Market Position „ 3G License „ MTT Networks „ 2 X Network Roll Out „ SAP Cut Over

  33. Slide 33: Market Position

    Market Position „ Market Share improved to 63% as of Q2-05 ‰ 2Million Sri Lankans on Dialog Network „ Tariff Revisions to maintain/grow market share ‰ KIT D2D ‰ Free CLI, GPRS ‰ Premium Quality IDD @ 11/- „ Value Added Services – TheFuture.Today ‰ RingIN tones for Prepaid ‰ Sinhala/Tamil browser ‰ 3

  34. Slide 34: 3G License

    3G License „ 3G Licensing Process - TRCSL ‰ Consultation in Progress ‰ Phase 1 allocation based on Beauty contest ‰ License expected in Q1-2006 „ Dialog 3G Pilot Network ‰ 1st in South Asia ‰ Non Commercial trial with 200+ Dialog customers

  35. Slide 35: MTT Networks (Pvt) Ltd

    MTT Networks (Pvt) Ltd „ DTL signed a SPA with the shareholders of MTT on 14 November „ The acquisition is expected to be completed by end of 2005 „ MTT possess following licenses issued from regulator: ‰ An exclusive license to establish and operate Communication Infrastructure facilities, Digital

  36. Slide 36: Network Rollout

    Network Rollout „ 550 + Sites covering all 9 provinces of the country.

  37. Slide 37: SAP

    SAP „ Expected to cutover on 01 January 2006 „ FI, CO, PS (inclusive of IM), SD and MM modules would be deployed in the first phase „ Biggest & Fastest (in terms of scale) implementation in Sri Lanka „ Expected Benefits: ‰ Process efficiencies ‰ Integrated reporting and budgetary control ‰ Project E

  38. Slide 38: Thank you

    Thank you TM TELEKOM

Dialog Telekom — Q3 2005 Earnings Presentation on 6ix