Slide 1: Maxis Berhad 1Q 2010 Results Presentation
MAXIS BERHAD 1Q 2010 Results Presentation 31st May 2010
Slide 2: Table of Contents
TABLE OF CONTENTS Performance Overview Operational Highlights Financial Highlights 2
Slide 3: Performance Overview
Sy maxis. PERFORMANCE OVERVIEW
Slide 4: Basis of Preparation
BASIS OF PREPARATION To facilitate comparability of the operational performance of the Group between periods, the proforma financial information in this presentation pack has been prepared on the assumption that the business combinations had been effected on 1 January 2009. 4
Slide 5: 1Q10 Highlights
1Q10 HIGHLIGHTS Solid start to the year ● 12.7m Mobile subscriptions ● 400k Mobile net adds ● 49k WBB net adds ● 1.1% YoY Revenue growth ● Mobile non-voice revenue contribution increased to 34.8% ● QoQ EBITDA margin improved 0.3% pts to 50.3% 5
Slide 6: At a Glance 1Q10
AT A GLANCE 1Q10 Growth Growth 4Q09 1Q10 YTD 09 YTD 10 QoQ YoY Revenue (RM m) 2,211 2,152 -2.7% 2,128 2,152 +1.1% EBITDA (RM m) 1,106 1,082 -2.1% 1,072 1,082 +0.9% EBITDA margin 50.0% 50.3% +0.3pp 50.4% 50.3% -0.1pp PAT (RM m) 503 552 +9.8% 547 552 +0.9% PAT margin 22.7% 25.7% +2.9pp 25.7% 25.7% -0.
Slide 7: Operational Highlights
Sy maxis. OPERATIONAL HIGHLIGHTS
Slide 8: Mobile Subscriptions
MOBILE SUBSCRIPTIONS Healthy growth momentum maintained Subscription Breakdown WBB +108% Prepaid +14% Postpaid +2% Total +13% WBB +19% Postpaid Pre paid WBB Prepaid +4% Postpaid 0% Total +3% 16,000 11,266 11,423 11,735 12,291 12,691 264 313 Subscriptions ’000 12,000 151 171 189 8,000 9,667 8,524 8,8
Slide 9: ARPU, MOU
ARPU, MOU Postpaid ARPU above RM100 for last 5 quarters ARPU Postpaid Prepaid WBB Blended Postpaid +4% Postpaid +0% ● Consistent postpaid ARPU of above 150 Prepaid -3% Prepaid -11% WBB -15% WBB -28% RM100 over last 5 quarters Blended -2% Blended -8% 104 107 107 100 102 97 103 100 102 102 97 102 ● Co
Slide 10: Non-Voice Revenue
NON-VOICE REVENUE Total mobile internet users grew 23% QoQ to 6.4 million ● For 1Q10, the number of mobile internet users grew by 1.2m or 23% QoQ to 6.4m users ● YoY non-voice revenue increased by 17% or RM103m, driven by healthy ADS growth ● Lower QoQ non-voice revenue but ADS continued to grow dri
Slide 11: Financial Highlights
Sy maxis. FINANCIAL HIGHLIGHTS
Slide 12: Revenue
REVENUE YoY growth continued Revenue ● YoY mobile revenue grew by 3.5% or RM69m on on the back of increased subscriptions 4,000 +1% 3,000 -3% ● Highest ever first quarter mobile revenue at 2,128 2,116 2,156 2,211 2,152 RM m RM2.02b 2,000 ● QoQ revenue declined by 2.7% on lower mobile 1,000 revenue r
Slide 13: EBITDA
EBITDA Continuing strong story! Margin above 50% EBITDA and EBITDA margin 3,000 +1% -2% EBITDA Margin 50.4% 50.7% 50.4% 50.0% 50.3% 60% 2,000 RM m 40% 1,072 1,073 1,086 1,106 1,082 1,000 20% 0 0% 1Q09 2Q09 3Q09 4Q09 1Q10 ● EBITDA margin increased by 0.3% points QoQ ● Absolute EBITDA lower QoQ due to
Slide 14: PAT
PAT Healthy margins maintained PAT and PAT margin +1% +10% 40% PAT Margin 1,500 28.1% 28.5% 25.7% 26.2% 30% 25.7% 1,000 RM m 22.7% 20% 594 615 547 580* 552 500 10% 503 0 0% 1Q09 2Q09 3Q09 4Q09 1Q10 * Comparable PAT for 4Q 09 excludes IPO related expenses of RM24m and discount for shares issued to IP
Slide 15: Operating Expense
OPERATING EXPENSE Cost structure remained stable Operating Expense Breakdown As a % of revenue 1Q09 2Q09 3Q09 4Q09 1Q10 Direct Expenses 33.1% 31.9% 32.4% 32.6% 33.3% Sales and Marketing 4.0% 4.1% 3.8% 4.6% 3.9% Staff-Related Cost 4.8% 4.7% 4.4% 4.1% 4.6% Bad Debts 1.5% 2.1% 2.1% 1.8% 1.4% G&A and Ot
Slide 16: Capex
CAPEX Continued network rollout Capex 596 ● For 1Q10, we achieved roll-out of: 600 − 313 2G sites − 197 3G sites 400 − 366 HSPA sites RM m 291 199 158 ● As at end March 2010, more than 95% of the 3G 200 135 sites are HSPA-ready 0 ● Catch up expected in 2H10 1Q09 2Q09 3Q09 4Q09 1Q10 − Fiberization ra
Slide 17: Cash Flow
CASH FLOW Strong operating cash flow maintained RM m 1Q09(1) 2Q09(1) 3Q09(1) 4Q09(2) 1Q10(2) Cash flow from operating activities 190 934 679 1,426 798 - Changes in work ing capital (748) (32) (40) 459 (171) Cash flow used in investing activities (162) (234) (300) 379 (154) - Purchase of property, pl
Slide 18: Dividend
DIVIDEND Progressive dividend policy and commitment to active capital management Div/share (in sen) Dividends paid to date since Jan 2010 12 (2 x 6 sen) 1st quarter dividend declared for 2010 8 20 Dividend to be paid after AGM approval 3 in July 2010 Expected dividend for next three quarters 24 (3 x
Slide 19: Discussion Points
Discussion Points ● Integrated telco update and capex guidance ● Regulatory HSBB Interconnect Spectrum re-farming ● Outlook 19
Slide 20: Disclaimer
DISCLAIMER This presentation by Maxis Berhad (“Maxis”) contains forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”