Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Advanced Info Service — Investor Day (March 2013)
27 slides from Singapore Telecommunications's investor day presentation, Mar 15, 2013
Slide 1: SGX announcement: SingTel Investor Day 2013 - AIS
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * SINGTEL Company Registration No. 199201624D Announcement submitted on behalf of SINGTEL Announcement is submitted with SINGTEL respect to * Announcement is submitted by * Chan Su Shan
Slide 2: Advanced Info Service - SingTel Investor Day 2013
Advanced Info Service SingTel Investor Day 2013 15 March 2013 Singapore
Slide 3: AIS at a glance
AIS at a glance Quick introduction • The largest Thai mobile operator with ~36 million subscribers (44% of subscriber market share or ~54% of market share in term of revenue) • Owns a 15 years license to operate 2x15MHz bandwidth on 2.1GHz spectrum and expect to provide 3G-2.1GHz service within 1H13
Slide 4: 2012 Key Financial Highlights
2012 Key Financial Highlights Financial Highlights FY12 2011 2012 % yoy (Bt million) Guidance Service revenue ex. IC 97,911 108,355 ▲11% ▲8-10% Voice revenue 70,944 74,742 ▲5.4% NA Non-voice revenue 19,736 26,197 ▲33% ▲30% Sales revenue 13,180 17,695 ▲34% ▲20%+ Total revenue 126,437 141,568 ▲12% NA
Slide 5: The year of mobile data
The year of mobile data Non-voice revenue Healthy mobile data growth supported by smart device and social networking popularity. 34% of AIS customers used mobile internet 3G subscribers reached 4.5mn and accounted for 13% of total subscribers. 17% of subscribers were using smart devices comp
Slide 6: 3G-2.1GHz Investment & Strategy
3G-2.1GHz Investment & Strategy 5
Slide 7: Being the best 3G network
Being the best 3G network • CAPEX 70bn in 3 years • 97% population coverage and 20k sites • All major cities in 1H13 • 77 provinces in 2H13 • Build as stand-alone network to better position for long-term growth Note: For indicative purpose only
Slide 8: Revenue migration: Lower regulatory fee
Revenue migration : Lower regulatory fee - 30% revenue share 3G-2.1GHz “Revenue migration” - Roaming rate to be determined, potentially in line with IC rate “Network” Roaming 3G-2.1GHz 3G-2.1GHz “SIM” Roaming “Device” 7
Slide 9: Migration Strategy
Migration Strategy 3G Devices “Variety and affordable” Network Coverage Revenue Migration “Nationwide” 2.1GHz users “Streamline porting process” %2.1GHz network coverage %3G Handset %Roaming users 97% in 3 years Time Time Time 8
Slide 10: Easy mobile number porting
Easy mobile number porting 2.1GHz 2.1GHz 2.1GHz 2.1GHz 2.1GHz 2.1GHz 2.1GHz 2.1GHz 2.1GHz 3G-2.1GHz network Bulk Customer Porting consent Friendly & easy for customers 900MHz network 9
Slide 11: Increase 3G devices users
Increase 3G devices users Device variety • Smart device - Feature phone • iOS- Android-BB-Window-Symbian Bundled • Airtime + data usage • Valued Added Services “Customized for services i.e. AIS Bookstore, AIS Guide&Go different segments” 10
Slide 12: Devices - Affordable 3G models
Devices- Affordable 3G models Samsung Galaxy Y Sony Xperia Tipo HTC Desire C Nokia Lumia 620 Bt3,290 Bt5,590 Bt6,900 Bt8,250 Huawei U2800 Samsung Hero 3G Nokia C2-01 Bt1,490 Bt1,690 Bt1,890 11
Slide 13: Winning strategy: Quality DNAs
Winning strategy: “Quality DNAs” “BEST CUSTOMER EXPERIENCE” Device Network Application Service • Variety of devices for • 97% population coverage • New applications for daily • Reinvent shops with different segments in 3 years lifestyles i.e. AIS Bookstore, latest technology to • Bundled airtime and
Slide 14: Outlook 2013
Outlook 2013 13
Slide 15: Service revenue growth for 2013
Service revenue growth for 2013 Voice growth 2-3% YoY Service Revenue growth 6-8% YoY Non-voice growth 25-30% YoY 14
Slide 16: Target 3G-2.1GHz users for 2013
Target 3G-2.1GHz users for 2013 Today subscriber base 8-10mn 12 million mobile internet users 3G-2.1GHz subscribers 7 million 3G devices users 40% 60% 4.5 million 3G-900MHz with 3G devices subscription without 3G devices 15
Slide 17: Roaming & Rental fee
Roaming & Rental fee 1 Interconnection Charge (IC) - Bi-lateral agreement - IC rate to be determined 2.1GHz 2 900MHz Roaming charge Company - To be determined Company Subjected to 30% revenue share to TOT 3 Site & Infrastructure rent - Tower - Part of transmission Subjected to 30% revenue share to T
Slide 18: Expect EBITDA margin 41-42% in 2013
Expect EBITDA margin 41-42% in 2013 - Roaming 3G to 2G 43.4% - Higher marketing expense (+50bps) 41-42% 2012 2013 17
Slide 19: Balance sheet is ready for 2.1GHz asset
Balance sheet is ready for 2.1GHz asset Amortization of Assets under BTO agreement (Bt-bn) Asset under BTO agreement (Bt-bn) New 2.1GHz Assets Depreciation of 2.1GHz network CAPEX 29bn “For indicative purpose only” “For indicative purpose only” Amortized 13bn 0 2012 2013 2014 2015 2012 2013 2014 201
Slide 20: Maintained dividend policy
Maintained dividend policy Capital structure Cash flow from operation (Bt-bn) Net debt to EBITDA 51.1 48.2 Net debt to Equity 44.9 0.01 Net 0.01 Net Cash Cash 2011 2012 2011 2012 2010 2011 2012 Borrowing • Company aims to pay dividend at least 100% Interest bearing debt (Bt-bn) Finance cost (Bt-bn)
Slide 21: Disclaimers
Disclaimers Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical fact
Slide 22: Appendix
Appendix 21
Slide 23: Consolidated income statement - Revenue
Consolidated income statement - Revenue Revenue 2011 2012 YoY Voice Revenue 70,944 72.5% 74,742 69.0% 5.4% Postpaid (Voice) 17,374 17.7% 18,698 17.3% 7.6% Prepaid (Voice) 53,570 54.7% 56,044 51.7% 4.6% Non-Voice Revenue 19,736 20.2% 26,197 24.2% 32.7% International Roaming 3,019 3.1% 2,805 2.6% -7.1
Slide 24: Consolidated income statement - Costs & Expenses
Consolidated income statement – Costs & Expenses Cost of services ex IC 2011 2012 YoY Netw ork Amortization 17,017 13.5% 14,907 10.5% -12.4% Base station rental & utility 2,984 2.4% 3,575 2.5% 19.8% Maintenance 1,484 1.2% 1,818 1.3% 22.5% Other cost of services 3,758 3.0% 4,919 3.5% 30.9% Total cost
Slide 25: Financial position
Financial position Balance Sheet / % to total asset 2011 2012 Cash 21,887 25.3% 23,531 23.3% ST investment 727 0.8% 1,340 1.3% Trade receivable 7,037 8.1% 8,065 8.0% Inventories 1,087 1.3% 1,427 1.4% Others 2,440 2.8% 3,741 3.7% Current Asset 33,178 38.3% 38,103 37.7% License for Telecom - 0.0% 14,5
Slide 26: Cash flow
Cash flow Cash flow - FY12 Bt. m illion Source of Fund Use of Fund Operating CF before change in w orking capital 62,570 Dividend payment 30,241 Proceeds of long-term borrow ings 3,999 Income tax paid 11,110 Interest received 746 CAPEX & Fixed assets 9,598 Sale of property and equipment 28 Payment o
Slide 27: Key financial ratio
Key financial ratio Key Financial Ratio 2011 2012 Debt Ratio 0.54 0.57 Net debt to equity 0.01 Net cash Net debt to EBITDA 0.01 Net cash Total liabilities to equity 1.2 1.3 Current Ratio 1.12 1.05 Interest Coverage 23.9 43.5 DSCR 5.6 4.5 ROE 66% 84% 26