Green Packet Bhd. · MYX:GPACKET
Green Packet Bhd — Q2 2011 Earnings Presentation
36 slides from Green Packet Bhd's earnings presentation, October 2011
Slide 1: Financial & Operational Performance for Period Ended 30 June 2011
Financial & Operational Performance For Financial Period Ended 30 June 2011
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 30 JUNE 2011 Private and Confidential 33
Slide 4: Highlights of Q2 2011
Highlights of Q2 2011 Group EBITDA positive by end 2011 is on track. Key metrics continue to improve. P1 subs additions close to target. Base station work-in- progress expanded to meet subs demand for H2 Solution Pillar ahead of target for H1, devices supply chain being expanded to maintain positive
Slide 5: Key Financial Highlights Q2 2011
Key Financial Highlights Q2 2011 Revenue (‘million) EBITDA (‘million) P1 P1 68.6 -19.1 (54%) Group Group 127.8 -13.6 Solution Alt Svs Solution Alt Svs 40.5 18.7 5.1 0.4 (32%) (14%) Revenue grew EBITDA losses decrease 42% Y-o-Y 31%Y-o-Y 5% Q-o-Q 11% Q-o-Q Copyright © 2011 Green Packet. All rights res
Slide 6: Revenue
Revenue +42% YoY growth +5% QoQ growth 121.7 127.8 116.3 100.9 90.0 2Q10 3Q10 4Q10 1Q11 2Q11 Solutions (Software & Devices) Broadband Services Alternative Services Total (MYR' million) Solutions pillar’s (software and devices) revenue grew 171% YoY on the back of strong CPE sales. However, QoQ rev
Slide 7: Result from Operational Units
Result from Operational Units EBITDA 31% YoY positive growth 11% QoQ positive growth (19.9) (13.5) (17.7) (15.4) (13.7) Alternative Services Broadband Services 2Q10 3Q10 4Q10 1Q11 2Q11 Solutions (Software & Devices) EBITDA Margin (22%) (13%) (15%) (13%) (11%) Group EBITDA improved 31% YoY and 11%
Slide 8: Result from Operational Units
Result from Operational Units Operational Losses -9% YoY negative growth +2% QoQ positive growth (33.7) (28.9) (51.3) (37.5) (36.6) Alternative Services 2Q10 3Q10 4Q10 1Q11 2Q11 Broadband Services Solutions (Software & Devices) Operational Losses (After MI) +56% YoY positive growth +20% QoQ positive
Slide 9: CAPEX & Funding
CAPEX & Funding • CAPEX incurred to date : RM 679 million • CAPEX the next 12 months: RM 250 million Funding Available as at 30 June 2011: • Group cash & cash equivalents available : RM 93 million • Bank and Vendor Financing facilities : RM 232 million Copyright © 2011 Green Packet. All rights reser
Slide 10: Operational Performance Q2 2011: Solutions
Solutions Operational Performance Q2 2011 Private and Confidential 1010
Slide 11: Devices - CPE Shipments
Devices - CPE Shipments 250 188.9 198.4 200 151.4 150 101.2 100 75.3 50 Substantial 0 Overseas CPE Shipment Growth 2Q10 3Q10 4Q10 1Q11 2Q11 2009 2010 CPE shipped ('000) Average CPE Price +164%YoY USD75 to USD85 +5% QoQ Copyright © Copyright Not for © 2011 2011 Green Green Packet. for distribution. d
Slide 12: Greenpacket Solutions is winning competitor's key accounts
Greenpacket Solutions is winning competitor’s key accounts Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1212
Slide 13: Devices & Software - Major Customers & Best Selling Products
Devices & Software - Major Customers & Best Selling Products Device Software Italy Pakistan Saudi Arabia Philippines Pakistan Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1313
Slide 14: Software Sales
Software Sales 185,000 Software licenses shipped in Q2 2011 Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1414
Slide 15: Software New Product Launched
Software New Product Launched iWLAN FOR SECURED DATA OFFLOAD Major ST Telcos 1 On Trials TO LAUNCH Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1515
Slide 16: Prestigious Award Nomination
Prestigious Award Nomination AWARD NOMINATION GERMAN DESIGN AWARD 2012 The Prestigious Award of Awards is bestowed only on products that have previously won national or international design prize… Copyright © 2011 Green Packet. All rights reserved. Private and Confidential 16 16
Slide 17: Synergistic Collaboration
Synergistic Collaboration Global 4G Networking Solutions Provider WINNING Leading 4G Operator 4G Chipmaker Joint development of 4G networking solutions and devices Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 1717
Slide 18: Operational Performance 2Q 2011
Operational Performance 2Q 2011 Private and Confidential 1818
Slide 19: Subscribers & ARPU
Subscribers & ARPU Total subs 338,000 56 82 81 81 60 80 50 78 40 33 76 75 31 73 30 74 72 21 22 72 20 70 10 68 0 66 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 Subs net adds ('000) Post Paid ARPU (RM) 1. Managing sub net adds according to site roll 1. Steady improvement of ARPU out. 9
Slide 20: Widening Coverage - RFS Sites
Widening Coverage - RFS Sites Added 74 sites in 2Q11 1083 1200 1009 950 1000 815 769 800 600 400 200 0 2Q10 3Q10 4Q10 1Q11 2Q11 RFS Sites Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 2020
Slide 21: P1's Collaboration in 1H 2011
P1’s Collaboration in 1H 2011 P1 & Qualcomm memorandum of Understanding, June 11 P1 & China Mobile technology cooperation agreement, June 11 Global TD LTE Initiative (GTI) P1 and world largest telcos are members of GTI Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private
Slide 22: Benefits of the Collaborations
Benefits of the Collaborations • 19 global telcos are ready to be served. • Acceleration of TD-LTE ecosystem. • Sharing of know-how in TD-LTE technology for our TD-LTE devices. • Enhance recognition of our devices. • 600 million subs potentially using our device/software app. • To become the market
Slide 23: Beyond 2Q11: Solutions
Solutions Beyond 2Q11 Private and Confidential 2323
Slide 24: Solution Business Achieved Targets
Solution Business Achieved Targets 500 387 400 CPE shipments: 300 230 +68% above target 210 200 160 100 CPE average price is +26% 0 above target 1H 11 3Q11 4Q11 Forecast ('000) Actual ('000) 600 477 Software license sales: 500 400 400 330 +19% above target 300 270 200 Software average price within 1
Slide 25: Solution's Strategy
Solution’s Strategy Solutions Dominating in fast growing Middle East and South Asia Market Launch of LTE-ready Software by 2H 2011 Penetrating the smart phone and tablet space with our connectivity platform R&D on new devices to meet 4G WiMAX/LTE market demand Copyright © 2011 Green Packet. All righ
Slide 26: Middle East Is The Fastest Growing Region for WiMAX
Leadership in Solutions Business Middle East Is The GP Solutions Fastest Growing continue its Region for WiMAX domination in South Asia Qubee Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 2626
Slide 27: Beyond 2Q11
Beyond 2Q11 Private and Confidential 2727
Slide 28: P1 - Challenging Environment but Targets on Track
P1 – Challenging Environment but Targets on Track Quarterly guidance revised due to the market dynamic but year end targets remain 80 70 70 64 60 60 Subscriber net adds -8% 50 40 below target due to managing 40 Subs acquisition according to network roll out. 20 Post paid ARPU +23% above target 0 1H1
Slide 29: Huge number of Sites in the Pipeline
Huge number of Sites in the Pipeline 1H 2011 3Q 2011 4Q 2011 Cumulative 1083 1193 1600 Ready for Service Sites Sites WIP As at 30 Jun 2011 New Sites 905 Addition New Sites 407 Addition 110 Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 2929
Slide 30: Holding the Bull by the Horns
Holding the Bull by the Horns Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 3030
Slide 31: 2H11 Subs Acquisition Booster
2H11 Subs Acquisition Booster PRODUCT MARKETING AGGRESSIVE SALES CHANNEL Dedicated marketing ENHANCEMENT campaign to target high growth Resellers incentive nomadic market programs Multiple increase in Enhanced promoter total marketing development programs spend Intensive on-ground sales acquisition
Slide 32: One and Only - One Plan
One and Only – One Plan Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 3232
Slide 33: 93% Compromise their Broadband Experience
Why One Plan 93% Compromise their Broadband Experience Intentionally left blank Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 3333
Slide 34: P1 2H11 Initiatives
P1 2H11 Initiatives Alamaya 4G Spot - Series depicting P1 Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Private and Confidential 3434
Slide 35: 2011 Outlook is Intact
2011 Outlook is Intact Solutions 600,000 CPEs to be shipped 450,000 cumulative subs Average CPE price of USD 62 ARPU of RM 61 (post paid) 1,000,000 software licenses Cumulative sites of 1600 License Fee USD 5-6 (US market) Copyright © 2011 Green Packet. All rights reserved. Not for distribution. Pri
Slide 36: Thank You
THANK YOU Private and Confidential 3636