Green Packet Bhd. · MYX:GPACKET
Green Packet Bhd — Q4 2010 Earnings Presentation
32 slides from Green Packet Bhd's earnings presentation, February 2011
Slide 1: Financial & Operational Performance for Period Ended 31 December 2010
Financial & Operational Performance For Financial Period Ended 31 December 2010
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and the following discussion may contain forward looking statements by Green Packet Berhad that reflect management’s current expectation, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available informa
Slide 3: Group Financial Performance
GROUP FINANCIAL PERFORMANCE FOR THE PERIOD ENDED 31 DECEMBER 2010 Private and Confidential 33
Slide 4: Key Financial Highlights 2010
Key Financial Highlights 2010 Revenue (‘million) EBITDA (‘million) P1 P1 208 -91 (53%) Group Group 394 -78 Solution Alt Svs Alt Svs Solution 108 78 2 11 (27%) (20%) Revenue grew EBITDA losses decrease 81% 34% FY09 vs FY10 FY09 vs FY10 Copyright © 2011 Green Packet. All rights reserved. Not for distr
Slide 5: Revenue
Revenue +105% YoY growth +15% QoQ growth 116.3 100.9 41.5 56.5 63.0 56.8 86.8 90.0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Software. Devices and Corporate Office Broadband Services Communication/Voice Services Total (MYR' million) Broadband services (P1) revenue maintained QoQ but grew 17% YoY. Tota
Slide 6: Result from Operational Units: EBITDA
Result from Operational Units +73% YoY positive growth EBITDA -13% QoQ negative growth (15.6) (20.7) (26.5) (56.2) (29.8) (19.9) (13.5) (15.2) Communication/Voice Services Broadband Services 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Software. Devices and Corporate Office Total (MYR' million) EBITDA Ma
Slide 7: Result from Operational Units: Operational Losses
Result from Operational Units +55% YoY positive growth Operational -11% QoQ negative growth Losses (22.2) (27.9) (29.9) (71.2) (43.5) (33.7) (28.9) (32.0) Communication/Voice Services Broadband Services 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Software. Devices and Corporate Office Total (MYR' millio
Slide 8: One-off Major Cleanout: Exceptional Provision for Impairment
One-off Major Cleanout Exceptional Provision for impairment - Investments and Assets RM’000 Platform & Portal Development Cost - Rummz Nation 8,280 Investment Written Off:- First Wireless 11,162 Inova 4,630 IWICS 9,128 GMO 18,784 Provision for impairment of Discounted Voice 2,922 Customer Base 54,90
Slide 9: Healthy Balance Sheet
Healthy Balance Sheet Shareholders Fund (RM' million) CAPEX 65% Coverage 508 55% 1bn Coverage 441 424 424 396 45% Coverage 577m 172m 2010 2011 2012 111 Cash and Facilities on hand (FY10) CAPEX to be funded by: 2005 2006 2007 2008 2009 2010 Vendor Financing RM 423m Copyright © 2011 Green Packet. All
Slide 10: Solutions Operational Performance 4Q 2010
SOLUTIONS Operational Performance 4Q 2010 Private and Confidential 1010
Slide 11: Devices - CPE Shipments
Devices - CPE Shipments 55.0 75.3 101.2 151.4 Substantial Overseas CPE Shipment Growth Q1 Q2 Q3 Q4 2009 Year 2009 2010 Year 2010 Average CPE Price 382,806 units USD95 +50% YoY Copyright © Copyright Not for © 2011 2011 Green Green Packet. for distribution. distribution. Packet. All All rights rights
Slide 12: Devices - Major Customers & Best Selling Products
Devices - Major Customers & Best Selling Products Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1212
Slide 13: Software - Breakthrough to Tier-1 Players
Software - Breakthrough to Tier-1 Players 2nd largest cable operator in the US Intouch Connection Management Platform Largest telco in Hong Kong WiFi Roaming project World’s 4th largest white goods manufacturer Green Packet Interact Collabright Copyright © 2011 Green Packet. All rights reserved. Not
Slide 14: Product of the Year 2010
Top-of-class Product Recognition Product of the Year 2010 Green Packet bags 3 Product of the Year awards at 4G Wireless Evolution Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1414
Slide 15: P1 4G Operational Performance 4Q 2010
P1 4G Operational Performance 4Q 2010 Private and Confidential 1515
Slide 16: Subscribers & ARPU
Subscribers & ARPU Highest 60 Total subs 274,000 56 ever 100 94 86 89 83 83 50 43 81 81 80 72 40 36 35 * 27 60 30 24 21 22 40 20 10 20 0 0 Subs net adds Post Paid ARPU *1. Nomadic segment grew 3-fold in 4Q, resulting in decreased ARPU to RM72. 4% Churn 2. Short term promotional package (50% off on 2
Slide 17: Market Strategy
Market Strategy 2009 2010 2011 2012 HOME BB NOMADIC BB MOBILE BB- INDOOR /OUTDOOR Nomadic BB, 8% The Future of Broadband Market Strategy to grow Malaysia Forecast (PC & Laptops Only) nomadic market Nomadic/Mobile Broadband Customers (000) Fixed Broadband Customers (000) P1 Fixed Total Broadband Pops
Slide 18: P1 Gaining Market Share
P1 gaining market share! Others 3% Market Shares P1 Market Shares P1 U Mobile 2% Digi 5% 7% 6% Celcom 20% P1 140,000 subs P1 274,000 subs TM 54% end 2009 Others 93% end 2010 Maxis 10% Total subs: 2.6mil in 2009 Forecast total subs: 3.8mil in 2010 Market share extrapolated based on P1’s coverage area
Slide 19: Market Share on New Net Add
Market Share on New Net Add Market share of New Net adds (Q4 09 to Q3 10) P1: 11% Digi, 13% TM, 17% Celcom, 29% Maxis, 30% Market share of New Net adds for P1’s coverage area (extrapolate based on 40% pop coverage) P1: 28% Telco 4Q10 Net adds Others, 65% P1 56K Celcom 54K Digi 41K Copyright © 2011 G
Slide 20: Widening Coverage - RFS Sites
Widening Coverage - RFS Sites 1000 Network rationalization to improve performance 950 caused slower site addition in 1H10 900 815 769 800 735 Added 135 sites in 4Q10, 700 642 308 sites in FY10 600 463 500 373 400 291 300 200 100 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 RFS Sites Copyright © 2011 Gr
Slide 21: Competition - Value is the Key
Competition – VALUE is the KEY FEE / RM 99 RM 89 RM 108 RM 198 98 RM 210 MONTH RM 21.0/Gb RM 19.8/Gb RM 19.6/Gb RM20/Gb P1 BEST VALUE for RICH MEDIA users RM15/Gb 9.9/Gb RM 10.8/Gb RM RM 8.9/Gb RM10/Gb RM 4.95/Gb For 20Gb user RM5/Gb Wiggy Home Plus Explore 10GB 12 GB Plan Advance YES (on-the-go) No
Slide 22: P1 The Only Fixed + Nomadic BB
FEE / MONTH P1 The ONLY Fixed + Nomadic BB RM200 RM150 RM 178/Mth 1Mbps / 70Kbps RM 158/Mth RM 158/Mth No Limit / 3Gb RM100 1Mbps / 7.2Mbps 1Mbps / 384Kbps No Limit / 1.5Gb No Limit / 1Gb RM 119/Mth RM 50 1.2Mbps 20Gb Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private
Slide 23: KPI Checklist: Target vs Actual
KPI Checklist Target Actual Group Revenue (RM ’mil) 400 390 98% Solutions Rev (RM’mil) 110 107 97% Broadband Rev (RM’mil) 210 208 99% Broadband Subscriber 280,000 274,000 98% Network rationalization in 1H slowed sites addition Sites (RFS) 1,050 950 90% Group EBITDA (RM’mil) （55） (78) 58% Channel Com
Slide 24: Beyond 2010
Beyond 2010 Private and Confidential 2424
Slide 25: Corporate Strategy & Outlook for 2011
Corporate Strategy & Outlook for 2011 Secure accounts of Tier-1 telcos for WiMAX & 3G operators Solutions Solidifying APAC and penetrating the US market R&D on new devices and software to meet market demand Position device and software solutions for LTE segment Leverage on existing fixed BB subs Wit
Slide 26: Outlook for 2011
Outlook for 2011 Solutions CPE to be 450,000 shipped 600,000 cumulative subs Avg CPE Price ARPU USD 62 RM 61 (more nomadic (post paid) devices) Software: 1,600 1 million Licences Cumulative sites Licence fee/sub EBITDA ranges USD 5-6 Turning positive (The US market) end 2011 Copyright © 2011 Green P
Slide 27: 2011 Strategic Focus to Defer Profitability Target
2011 Strategic Focus To Defer Profitability Target Strategic Focus to Grow Nomadic Segment in 2011 RESULT IN Lower ARPU, Higher SAC + Increased investment into A&P and aggressive subscriber acquisition throughout 2011 + Continued investment to sustain and expand robust network EBITDA Breakeven Targe
Slide 28: Opportunities
Opportunities Private and Confidential 2828
Slide 29: Software Solutions
Software Solutions Everything Connected Application 10 Billion Convergence Connected Devices Network Connected Device Convergence Mobility 24/7 Convergence Data Growth Explosion of Demands Mobile Software- Broadband enabled Smart Devices Connectivity across any Seamless platform and Mobility any dev
Slide 30: Potential Size of the Connection Management Software Market
Connection Management Software high growth potential Total Global Revenue (USD) 585M Potential Size of the connection 473M management market 368M 202M 278M Huge revenue/profit potential to be captured by Green Packet 2011 2012 2013 2014 2015 •License Royalties Only ** Does not include Smartphones So
Slide 31: 30MHz 2.3GHz / 20MHz 2.6GHz
30MHz I 2.3GHz 20MHz I 2.6GHz Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 31
Slide 32: Thank You
THANK YOU Private and Confidential 3232