Advanced Info Service Public Co., Ltd. · SET:ADVANC

Advanced Info Service Public — Q3 2014 Earnings Presentation

14 slides from Advanced Info Service Public's earnings presentation, Nov 3, 2014

  1. Slide 1: Financial Result 3Q14

    FINANCIAL RESULT 3Q14 Advanced Info Service Plc. 3 November 2014

  2. Slide 2: Key Highlights

    Key Highlights  AIS continued to ramp up 3G-2.1GHz network to strengthen customer experience. We now have 20,500 base stations of 3G plus 22,000 WiFi hotspots and will continue to increase small cells in dense area to cope up with surging data usage.  3Q14 revenue was better than normal seasonalit

  3. Slide 3: 3G coverage, subscribers and 2014 products & services

    97% 88% 19mn pop. coverage 20,500 3G BTS 3G to total subs 3G device on 2.1GHz 2014 Products & Services New series of ‘Lava’ Value our subscribers Partnered with CIMB AIS Super Combo Discount handsets with Beat Banking on MPay Black Series bundling packages 3

  4. Slide 4: 3Q14 Key Financial Highlights

    3Q14 Key Financial Highlights Bt million 3Q13 2Q14 3Q14 % YoY % QoQ Service revenue ex. IC 28,946 29,604 29,382 ▲1.5% ▼0.7% 2G revenue1) 19.819 6,387 3,760 ▼81% ▼41% 3G revenue2) 7,817 21,545 23,875 ▲205% ▲11% Sales revenue 3,687 5,024 4,208 ▲14% ▼16% Total revenue, ex. construction 34,459 36,481 35

  5. Slide 5: 9M14 Key Financial Highlights

    9M14 Key Financial Highlights Financial Highlights FY14 9M13 9M14 % YoY (Bt mn) Guidance Service revenue ex. IC 87,546 87,953 ▲0.5% 1-2% % 3G revenue to service revenue ex.IC 12% 70% 2G revenue* 73,344 21,451 ▼71% NA 3G revenue** 10,157 61,511 ▲506% NA Sales revenue 13,048 14,878 ▲14% NA Total reven

  6. Slide 6: 3Q14 Revenue by segment

    3Q14 Revenue by segment (Bt mn) Voice revenue Non-voice revenue IR revenue -17% yoy +39% yoy -14% yoy 18,810 -7% qoq +8.6% qoq -3.1% qoq 16,890 10,488 11,388 15,710 8,205 621 554 537 3Q13 2Q14 3Q14 3Q13 2Q14 3Q14 3Q13 2Q14 3Q14  Lower usage  Rising smart devices adoption  Martial law still enforc

  7. Slide 7: 3G-2.1GHz subs representing 88% of total users

    3G-2.1GHz subs representing 88% of total users 43.8mn subscribers 2G  3G-2.1GHz subscribers reached 38.7mn or 5.1mn 88% of total subs  3G device users reached 19mn from 16mn 3G last quarter. This represented 49% of the 38.7mn 3G-2.1GHz subscribers, largely driven by our success in “AIS Super Combo

  8. Slide 8: YoY, rising cash opex offset by lower regulatory fee

    YoY, rising cash opex offset by lower regulatory fee QoQ, both regulatory fee and SG&A decreased Regulatory fee regulatory fee % regulatory fee % 3G revenue (Bt mn) to service revenue excluding IC -26% yoy -26% yoy 20,946 -15% qoq 24% 86% 15,571 21% 77% 74% 18% 18% 16% 6,217 5,394 28% 4,589 12% 3Q13

  9. Slide 9: EBITDA YoY improved from revenue growth and lower regulatory fee

    EBITDA YoY improved from revenue growth and lower regulatory fee while QoQ increased from lower SG&A. 3Q14 – EBITDA (YoY) (Bt mn) 1,628 (323) 31 (1,778) 63 16,442 15,329 436 (226) 3Q13 Service rev Service cost Reg fee Net sales Net IC SG&A Others 3Q14 ex.IC ex.IC 3Q14 – EBITDA (QoQ) (Bt mn) 434 (83)

  10. Slide 10: EBITDA margin expanded YoY and QoQ from lower regulatory cost

    EBITDA margin expanded YoY and QoQ from lower regulatory cost Margin  3Q14, Consolidated EBITDA margin was 46.5% and rose YoY and QoQ mainly from Consolidated Service margin* regulatory savings as 3G penetration EBITDA margin increased. Service margin stood at 53.1% 46.5% 53.1% in 3Q14. 52.1% 45.0%

  11. Slide 11: FCF positive despite of rising capex

    FCF positive despite of rising capex Free cash flow (OCF-CAPEX) (Bt bn)  In 9M14, we continue to expand our capacity on 3G network with CAPEX of Bt25.7bn, increased by 36%.  Our operating cash flow increased to 24.6 Bt44bn and ready to support both network 18.4 investment and dividend.  This left

  12. Slide 12: Maintain financial flexibility to support future growth & shareholder returns

    Maintain financial flexibility to support future growth & shareholder returns Debt repayment schedule (Bt bn) 9.0 6.8 6.6 5.7 3.7 3.0 2.4 2.2 2.5 - - - 3Q14 4Q14 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Capital structure Interest bearing debt / Finance cost (Bt bn) Net debt/Equity Net debt/

  13. Slide 13: 2014 guidance

    2014 guidance Service revenue, • increase 1-2% excluding IC • 85% of total subscribers (achieved) 3G-2.1GHz subscribers • 45% using 3G devices • service margin increase 300 bps EBITDA margin • consolidated margin increase 100bps Bt40bn • 95% population coverage with 20,000 3G BTS and additional CAPE

  14. Slide 14: 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

Advanced Info Service Public Company — Q3 2014 Earnings Presentation on 6ix