Maxis Bhd. · MYX:MAXIS
Maxis Bhd — Q1 2016 Earnings Presentation
24 slides from Maxis Bhd's earnings presentation, Apr 21, 2016
Slide 1: Financial Results First Quarter 2016
Financial Results First Quarter 2016 21 April 2016
Slide 2: 1Q16 - Stable financial performance
1Q16 - Stable financial performance * YoY service revenue stable; QoQ in-line with 1Q seasonality ¢ Postpaid growth driven by MaxisONE Plan, Prepaid impacted by promotional competition ¢ Underlying EBITDA stable; adjusted for forex and service tax impact * Continued to lead in high performing 4G LTE
Slide 3: Key numbers
Key numbers Service Revenue 2,127 2,160 2,126 -1.6% 0.0% EBITDA 1,083 1,121 1,156 +3.1% +6.7% EBITDA margin on service revenue 50.9% 51.9% 54.4% +2.5pp +3.5pp Profit After Tax 482 477 484 +1.5% +0.4% Prepaid Revenue 1,052 1,041 1,015 -2.5% -3.5% Postpaid Revenue 972 1,011 994 -1.7% +2.3% EBITDA, EBI
Slide 4: Service revenue YoY stable; QoQ impacted by price-focused competition and seasonality
Service revenue YoY stable; QoQ impacted by price-focused competition and seasonality Service Revenue (RM mn) Total RGS and Blended ARPU 0.0% lee 3—__i__83__ 8 __ 8 - . - “ z ~ - - 1015 4Q15 1016 1015 2Q15 3Q15 4Q15 1016 ™ Subscriptions (000) Ml Blended ARPU (RM/mth) * Lower subscription base reflec
Slide 5: Prepaid — Soft acquisition momentum on the back of price-focused competition
Prepaid — Soft acquisition momentum on the back of price-focused competition a a -2.5% - - - 1015 4Q15 1Q16 1015 2Q15 3Q15 4Q15 1016 Subscription (000) gy Prepaid ARPU (RM/mth) * Focus on growing MI penetration of prepaid RGS base; >50% in 1Q Continued good traction on MI ARPU; mitigating voice and
Slide 6: Postpaid revenue and ARPU growth driven by MaxisONE Plan
Postpaid revenue and ARPU growth driven by MaxisONE Plan +2.3% 1.7% : Postpaid Revenue (RM mn) Postpaid RGS and ARPU —_i 1ais 415 1016 1015 2015 3015 4Q15 1016 © Subscription (000) i Postpaid ARPU (RM/mth) * 1Q revenue decline driven mainly by lower seasonal roaming revenue * Bundled revenue now at
Slide 7: Solid momentum in 4G adoption
Solid momentum in 4G adoption LTE device doubled in last 12 months Data Volume 36 42 45 50 1015 2Q15 3Q15 4Q15 m2G m3G 4G TB (‘000) Mobile Internet Penetration Data Usage 70% ——71% —71% —— 72% —71% 1015 2Q15 3015 = 4Q15 1016 Mobile Internet © Postpaid (GB/mth) Penetration Bf Prepaid (GB/mth) LTE Dev
Slide 8: Annual capex as guided; investment to accelerate
Annual capex as guided; investment to accelerate Focus on expanding 4G coverage and enhance “Always On” data experience Capex (RM mn) Network Population Coverage 1Q15 1Q16 1015 4Q15 1Q16 * 4GLTE pop coverage at 81% on comparable basis to peers * 4GLTE now available in 36 key towns/cities in East Mal
Slide 9: Underlying EBITDA stable excluding forex and service tax impact
Underlying EBITDA stable excluding forex and service tax impact Normalised EBITDA Normalised Cost Development 43.1% =o / 1Q15 4Q15 1Q16 1Q15 4Q15 1016 @ EBITDA (RM mn) Service Revenue EBITDA Margin Hf Total Costs BH Direct Exp (% Rev) Ml S&M (% Rev) (RM mn) © Staff (% Rev) BH G&A (% Rev) * YoY cost
Slide 10: Stable Profit after Tax
Stable Profit after Tax Normalised Profit after Tax (RM mn) Accelerated Depreciation (RM mn) +0.4% 41.5% 57 482 477 484 50 9 1Q15 4Q15 1Q16 1015 4Q15 1016 * 1Q PAT excludes RM43 million unrealised forex gains (4Q15: RM31 million) and RM7 million accelerated depreciation net of tax (4Q15: RM38 millio
Slide 11: Summary
Summary 1Q stable financial performance in a challenging market * Continue investment in best network for superior “Always On” data experience Digital transformation on track * Competitive offerings launching and more to come 2016 outlook: Service revenue, absolute EBITDA and base capex at similar l
Slide 12: MAXPERTS MaxisONE Home
MAXPERTS MaxisONE Home Enjoy better fibre broadband \ THE INTERNET EXPERTS experience, perfected by y Q & A Maxperts “ Conlinue reading 12
Slide 13: Disclaimer
13 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”, “pl
Slide 14: MaxisONE Share family plans
Now, they can enjoy the best of unlimited talk and text plus up to 8GB data to share between your family with MaxisONE Share Sign up for a principal line on MaxisONE Shere 128*, MaxisONE Share 158 or MaxisONE Share 188 and add on additional supplementary lines for just RM48/month, Unlimited Unlimite
Slide 15: Appendices
Appendices Now wherever you go, your MaxisONE plan goes too. 15
Slide 16: Important definitions/notations
16 Important definitions/notations Service Revenue: Group revenue excluding device & hubbing revenue EBITDA margin on Service Revenue: EBITDA as percentage of service revenue Normalised PAT: Adjusting for net of tax effect: (i) accelerated depreciation of RM43 million in 1Q15, RM38 million in 4Q15 a
Slide 17: Reported Consolidated Income Statement
7 Reported Consolidated Income Statement REVENUE 2,149 2,110 2,166 2,176 2,140 -1.7% -0.4% Direct Exp (713) (650) (689) (676) (656) -3.0% -8.0% Indirect Exp (389) (359) (456) (338) (271) -19.8% -30.3% Total Exp (1,102) (1,009) (1,145) (1,014) (927) -8.6% -15.9% EBITDA 1,047 1,101 1,021 1162 1,213 +4
Slide 18: Normalised Consolidated Income Statement
18 Normalised Consolidated Income Statement REVENUE 2,149 2,110 2,166 2,176 2,140 -1.7% -0.4% Direct Exp (713) (650) (687) (678) (660) -2.7% -T4% Indirect Exp (353) (350) (368) (377) (324) 141% -8.2% Total Exp (1,066) (1,000) (1,055) (1,055) (984) -6.7% -7.71% EBITDA 1,083 1,110 1111 1,121 1,156 +3.
Slide 19: Cash Flow Statement
19 Cash Flow Statement [Reine aris 20s 2a ants a6] RMmn 4151016 Cash flow from operating activities 1,109 1,267 Cash flow used in investing activities (256) (398) (429) (796) (259) Purchase of property, plant & equipment (146) (317) (357) (692) (183) Proceeds from disposal of PPE - 1 - 1 2 Purchase
Slide 20: Revenue Composition
Revenue Composition (RMmn) 1142014 3014 AOA 11S 2015 3QTS_ AQT 186 Total Revenue 2119 2,082 2,065 2123 2149 2110 2,166 2,176 2,140 - Service 2,037 2,049 2,049 2,094 2127 2,094 2,158 2,160 2126 - Mobile 1,953 1,958 1,954 1,992 2,024 1,989 2,050 2,052 2,009 - EntFixed 59 62 64 68 65 64 63 61 67 - Inte
Slide 21: Reported Financials and Costs
Reported Financials and Costs (RMmn) 1014 20143014 4014 11S 2015 3015S AQIS 1016 Total Revenue 2,119 2,082 2,065 2,123 2149 2110 2166 2176 2,140 Total Expenses 1,046 996 995 1,123 1102 1,009 1145 1,014 927 - Direct 707 652 652 696 713 650 689 676 656 - Indirect 339 344 343 427 389 359 456 338 271 EB
Slide 22: Normalised Financials and Costs
22 Normalised Financials and Costs (RMmn) 10142014 3014 4141015 2015 3015 4G 1016 Total Revenue 2,119 Total Expenses 1,044 - Direct 707 - Indirect 337 EBITDA 1,075 PBT 698 PAT 519 EBITDA Margin 50.7% PAT Margin 24.5% 2,082 1,019 652 367 1,063 671 479 511% 23.0% 2,065 986 652 334 1,079 709 500 52.3%
Slide 23: RGS30, ARPU and Smart-phone penetration
23 RGS30, ARPU and Smart-phone penetration (000) 1014 2014 3014414 1015-2015 31S AQIS 1016 Mobile Subs 11,076 11,146 11,338 11,864 12,192 12,214 11,956 11,579 11,164 - Prepaid 7,822 7,903 8,120 8,656 8,992 9,068 8,850 8,520 8,196 - Postpaid 2,749 2,781 2,786 2,809 2,823 2,796 2,784 2,765 2,696 - WBB
Slide 24: Market Definition Subscriptions, ARPU and MOU
24 Market Definition Subscriptions, ARPU and MOU (000) 114 2014 30144014115 20153015 4Q15 1016 Mobile Subs 12,602 12,401 12,415 12,913 13,260 13,269 13,110 12,694 12,310 - Prepaid 9,238 9,042 9,081 9,624 9979 10,051 9,927 9,567 9,279 - Postpaid 3,364 3,359 3,334 3,289 3,280 3,218 3,174 3,127 3,031 W