Green Packet Bhd. · MYX:GPACKET
Green Packet Bhd — 2Q 2010 Earnings Presentation
22 slides from Green Packet Bhd's earnings presentation, Aug 16, 2010
Slide 1: Business update & Financial performance
Business update & Financial performance for Green Packet Berhad for the period ended 30 June 2010
Slide 2: Solutions Pillar
Green Packet SOLUTIONS PILLAR Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 2
Slide 3: "Solutions" Revenue
“Solutions” Revenue RM 11.4m RM 14.9m 2Q 2009 2Q 2010 +31% RM 14.2m RM 37.2m 1H 2009 1H 2010 +162% Average CPE price of USD 80 Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 33
Slide 4: CPE Shipments
CPE Shipments 22,471 230,572 253,043 1H 2009 2H 2009 FY 2009 130,259 344,221 507,045 1H 2010 2H 2010 (f) FY 2010 (f) Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 44
Slide 5: 4G WiMAX Operator Pillar
Green Packet 4G WIMAX OPERATOR PILLAR Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 55
Slide 6: 1H 2010 Focus Areas
1H Focus Areas 1H 2010 Focus Areas Foundation for significant ramp- Enhance up of Push Sales Network customer acquisition Quality Improving network quality and mobility proposition Branding & Enhance Customer Improve customer service Awareness Service New product Introduction Optimize Customer Sat
Slide 7: 2H 2010 Focus Areas
2H Focus Areas 2H 2010 Focus Areas Enhance Enhance Sales, Branding & New Products Push Sales Network Network Quality Quality More aggressive Sales and Marketing activities. Broadband package promotions. Branding & Enhance Enhance Launches of new products such as WiMAX Customer Customer embedded n
Slide 8: Broadband Service Key Operating Metrics
Broadband Service Key Operating Metrics Subscriber Net Adds R F S Sites (Total 196,000 as at end June 10) (Total 769 sites as at end June 10) Results of 1H Network Results of 1H Network Optimization Optimization Stop selling at congested sites Focus deep not wide (peering, backhaul & firmware upgrad
Slide 9: Major Events in 2Q 10
Major Events in 2Q 10 • Launched WiMAX- embedded laptop end June 2010. • SK Telecom’s USD 100 million (RM 323 million) investment in P1. Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 99
Slide 10: Strategic Alliance with SK Telecom
Strategic Alliance with SK Telecom Investment USD100 mil / RM323 mil Amount (25.8% stake) Valuation Post Money - USD388 million RM1.26 billion Security Class C Islamic Irredeemable Convertible Preference Shares (4.5% p.a. coupon) Value of GPB’s RM 720 million stake in P1 after the investment GPB mar
Slide 11: Group Financial Performance
GROUP FINANCIAL PERFORMANCE FOR THE PERIOD ENDED 30 JUNE 2010 Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 1111
Slide 12: Financial Overview
Financial Overview 1Q2008 to 1Q2010 Revenue (million) 100 87 90 CAGR 90 (2008-2010) 80 >110%* 70 63 60 56 57 2008 50 42 2009 40 2010 30 25 22 22 18 20 10 0 Q1 Q2 Q3 Q4 * Note: Forecast revenue 2010 of RM 400 m. Copyright© 2010 Green Packet. All rights reserved. Copyright © 2010 Green Packet. All rig
Slide 13: Revenue
Revenue +59% YoY growth +4% QoQ growth 41 56 63 57 87 90 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Software and Applications Broadband Services Communication/Voice Services Total (MYR' million) Revenue from Service Provider Group increased in line with increased in subscribers base reaching 196,000 by 2nd qua
Slide 14: Result from Operational Units
Result from Operational Units -22% YoY negative growth Operational +22% QoQ positive growth Losses (22) (28) (30) (97) (43) (34) Communication/Voice Services 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Broadband Services Software and Applications Total Operational Losses for 2Q10 is substantially lower, mainly du
Slide 15: CAPEX & Funding
CAPEX & Funding • CAPEX incurred as at end June 2010 : RM 517 million • Remaining CAPEX over next 2 years: RM 500 million - Phase 2 & 3 (65% coverage) Funding Available as at 30 June 2010: • Group cash & cash equivalents available : RM 103 million* • Bank and Vendor Financing facilities : RM 432 mil
Slide 16: Network & Quality Strategies
Strategies How to get 280,000 subs by 2010 Sales Retention Acquisition Aggressive Sales & Promotion, Improve e2e customer Product bundling, WiMAX- experience, king of choice embedded notebook Network & Quality - To increase total sites to 1000. - Add 90 capacity sites - Zero congested transmission l
Slide 17: P1's Technology Roadmap
P1’s Technology Roadmap The technology that best serves our customers is our choice technology ~ 20% * WiMAX 4G WiMAX (IEEE802.16E) 2 (IEEE802.16M) 4G LTE LTE- (Release Advanced 8) (Release 10) ~ 35% * 2008 2009 2010 2011 2012 - 2014 Note: Incremental percentage of radio portion of Capex. Radio comp
Slide 18: Network Performance Risk
Network Performance RISK Minimize / Eliminate • 2.3GHz Showcase network - Closer collaboration with infrastructure partner, ZTE. • Partnership with SK Telecom to ensure Network a robust, high performance network. performance • Accelerate Site Acquisition - Special Task Force to resolve site acquisit
Slide 19: Funding Risk
Funding RISK Minimize / Eliminate • SK Telecom Investment of RM323 mil completed • ZTE vendor financing of RM500 mil in place with attractive financial terms • Build value into P1, post-money Funding equity valuation on SK Telecom deal at RM1.3 billion • Quality CAPEX spending • Raise profile and un
Slide 20: Green Packet Preps for the Future
Looking Forward to a Broadband World GREEN PACKET PREPS FOR THE FUTURE Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 2020
Slide 21: Looking forward for 2010
Looking forward for 2010 Target P1 subscribers to double to 280,000 Target FY 2010 revenue to double to RM 400 million Target EBITDA breakeven point in 1Q 2011 Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 2121
Slide 22: Thank You
THANK YOU Copyright© 2010 Green Packet. All rights reserved. Private and Confidential 22