Dialog Axiata PLC · CSELK:DIAL.N0000

Dialog Axiata — Q2 2010 Earnings Presentation

24 slides from Dialog Axiata's earnings presentation, 2010

  1. Slide 1: Investor Forum Q2 2010

    Investor Forum Q2 2010 Enriching Sri Lankan Lives

  2. Slide 2: Dialog Group

    Dialog Group 2 Dialog

  3. Slide 3: EBITDA Margin YoY improvement and NPAT

    EBITDA Margin YoY* Improvement in EBITDA Margins due to diligent and continuous cost Dialog Company DBN DTV Dialog Group 12pp 48pp 26pp 13pp management initiatives Rs. 3.76Bn Rs. 33Mn Rs. 30Mn Rs. 3.82Bn Increase in EBITDA margin NPAT - 1H 2010 Impressive NPAT improvement at Rs. 3.09 Bn Rs. 2.08 Bn

  4. Slide 4: QoQ and YoY Performance Overview

    QoQ Performance Overview YoY Performance Overview* (Q2 10 Vs. Q1 10) (Q2 10 Vs. Q2 09) Revenue EBITDA NPAT Revenue EBITDA NPAT Dialog Axiata 2% 12% 42% 65% >1000% 14% PLC (Company) Dialog Broadband -2% 176% 27% -1% 113% 42% Networks (DBN) Dialog Television 7% 23% 7% 27% 135% 61% (DTV) Dialog Group 2

  5. Slide 5: Group costs declined, EBITDA and NPAT improved

     Group costs declined by 4% QoQ and 5% relative to 1H 09  EBITDA improved by 15% QoQ and 80% relative to 1H 09  NPAT improved by 95% a on a QoQ basis (All figures in Rs. Mn.) QoQ Q2 10 Vs. YTD Q2 10 change Q2 09 YTD 10 change Revenue (incl. Site 10,160 2% 14% 20,111 15% sharing income) 4% 5% 5% T

  6. Slide 6: Group EBITDA and NPAT

    Group EBITDA and NPAT* (Rs. Mn.) 38% EBITDA margin • Up 13% pts Vs Q2 09 (Norm) • EBITDA growth of 80% YTD and 15% Vs. Q1 10 NPAT margin 14% • Up 21% pts Vs Q2 09 (Norm) Group Financial Summary (Rs. Mn.) Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 EBITDA** (Reported) 1,878 2,400 2,818 3,324 3,824 % Growth 28% 17%

  7. Slide 7: Dialog Axiata PLC - Company

    Dialog Axiata PLC - Company 7 Dialog

  8. Slide 8: Company revenue, EBITDA and NPAT growth

     Revenue grew by 2% QoQ and 15% relative to 1H 09  EBITDA improved by 12% QoQ and 67% relative to 1H 09  NPAT improved by 42% a on a QoQ basis (All figures in Rs. Mn.) QoQ Q2 10 Vs. YTD Q2 10 change Q2 09 YTD 10 change Revenue (incl. Site 2% 14% 15% 9,296 18,397 sharing income) 4% 5% 5% Total Cos

  9. Slide 9: Company revenue composition

     Pre-paid revenue dominant contributor to Company Revenue 14% revenue with 42% share  Amidst intense competition  Post-paid revenue continued to increase  Increase in Inbound roaming revenue  Non voice revenue account for 10% of total  International voice termination up 30% YoY revenue  Robus

  10. Slide 10: Pre : Post mix, MOU, subscribers and ARPU

    Pre : Post mix 89% 11% Pre-paid Post-paid MOU (Minutes) & RPM (Rs.) No of Subscribers & ARPUs 10

  11. Slide 11: Direct Cost Composition

    Direct Cost Composition* Direct Cost grew by 2% YTD Direct Cost* declined by 4% QoQ  Direct cost as a % of revenue  Levies and Origination cost – significant components • 35% in Q2 10 of Direct Costs • Improved by 4% points relative  Levies increased 17% YTD due to increase in to Q2 09 internatio

  12. Slide 12: Operating Costs trends

    Operating Costs declined by 13% YTD, 3% QoQ and 13% YoY  Decline in operating costs were driven by reduction in operating Operating cost as a % of revenue overheads, administration and manpower related expenses • 25% in Q2 10 • Improved by 8% points Operating Cost Composition* Rs Mn. relative to Q

  13. Slide 13: EBITDA Margin Movement 1H 2009 to 1H 2010

    EBITDA Margin Movement 1H 2009 to 1H 2010 - EBITDA margin impact (%) + EBITDA margin impact (%) Drop in BTS site expenses, Link satellite cost & renegotiation of AMCs Increase in VGF cost in line with higher terminated minutes Increase due to the rise in International Traffic Cheaper SIM cards, scra

  14. Slide 14: Dialog Company EBITDA and NPAT

    Dialog Company EBITDA and NPAT* (Rs. Mn.) EBITDA margin 40% • Up 12% pts Vs Q2 09 (Norm) • EBITDA growth of 67% YTD and 12% Vs. Q1 10 NPAT margin 20% • Up 20% pts Vs Q2 09 (Norm) Dialog Company Financial Summary (Rs. Mn.) Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 EBITDA (Reported)** 1,801 2,466 2,820 3,344 3,75

  15. Slide 15: Summary of outstanding borrowings - As at 30 June 2010

    Summary of outstanding borrowings - As at 30 June 2010 Instructions Type of Currency Facilities Principal Less than More than one facility amount outstanding one year year USD Mn eqv. USD Mn eqv. USD Mn eqv. USD Mn eqv. SCB Loan Facility LKR 22.04 5.28 5.28 0.00 OCBC Term Loan USD 200.00 135.00 7.81

  16. Slide 16: Dialog Broadband Networks (DBN)

    Dialog Broadband Networks (DBN) (Fixed Telephony and Broadband Services) 16 Dialog

  17. Slide 17: DBN revenue, EBITDA and NPAT

     Revenue declined by 2% QoQ and 1% relative to Q2 09  EBITDA up 176% QoQ and 113% relative to Q2 09 due to continuous cost management efforts  NPAT improved by 27% on a QoQ basis and 42% relative to Q2 09 (All figures in Rs. Mn.) QoQ Q2 10 Vs. YTD Q2 10 change Q2 09 YTD 10 change Revenue 577 -2%

  18. Slide 18: Broadband and ISP revenue and subscribers

     Broadband and ISP revenue increased by 26% YoY driven by increase in broadband and internet subscribers by 17% YoY  CDMA and Broadband subscriber base increased by 4% YoY and 2% QoQ CDMA and Broadband Subscribers ’000 4% 2% 189 186 184 182 182 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 18

  19. Slide 19: Dialog Television (DTV)

    Dialog Television (DTV) 19 Dialog

  20. Slide 20: DTV positive EBITDA for second successive quarter

     Positive EBITDA for the second successive quarter  EBITDA up 23% QoQ and 135% relative to Q2 09  NPAT improved by 7% on a QoQ basis and 61% relative to Q2 09 (All figures in Rs. Mn.) QoQ Q2 10 Vs. YTD Q2 10 change Q2 09 YTD 10 change Revenue 522 7% 27% 1,011 30% EBITDA 30 23% 135% 54 123% NPAT (

  21. Slide 21: Dialog Group - Balance Sheet KPIs

    Dialog Group - Balance Sheet KPls 21 Dialog

  22. Slide 22: Group Capex declined and operating cash flows

    Group Capex declined by 26% QoQ and 44% relative to Q2 09 due to prudent capex spending  in view of monetising current investments to maximise yields  Capex/revenue ratio of 12% in Q2 10  Operating cash flows grew by 51% QoQ 2% Capex (Rs. Mn.) and Capex/Revenue (%) Operating cash Flow per quarte

  23. Slide 23: Dialog Group Balance Sheet Recovery

    Robust traction towards the achievement of investment grade benchmark balance sheet indicators in the near term Dialog Group Balance Sheet Recovery (All figures in Rs. Mn.) Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Trend except for ratio’s Gross Debt Position* 35,419 31,198 33,334 31,421 28,520 Gross Debt to EB

  24. Slide 24: Thank You

    Thank You 24 Dialog

Dialog Axiata — Q2 2010 Earnings Presentation on 6ix