Telenor ASA · OSL:TEL
Telenor ASA — DiGi.Com — Investor Presentation (January 2004)
26 slides from Telenor ASA's investor presentation, Jan 8, 2004
Slide 1: DiGi.Com DiGi Telecom
DiGi.Com DiGi Telecom Tore Johnsen, COO January 8 2004 1 Johnsen Tore Page 1
Slide 2: Outline
Outline • DiGi – overview • Malaysian Market • DiGi performance • DiGi Network evolution • Outlook Tore Johnsen Page 2
Slide 3: DiGi Shareholder Structure
DiGi Shareholder Structure • Telenor acquired 30% end 1999, effective from Jan 1 2000 • In the period between Jan 2000 and Sept 2001, Telenor acquired additional 2.9% up to a level where further increase would generate a general offer to be made • On September 14, 2001 Telenor Asia Pte Ltd., a subsi
Slide 4: DiGi Business Areas
DiGi Business Areas • DiGi Telecommunications Sdn Bhd has developed into one of the top three mobile providers in Malaysia DiGi DiGiTelecommunications Telecommunications Sdn SdnBhd Bhd Mobile Mobile International International Others Others Services Services Carrier CarrierServices Services % of Q3
Slide 5: Malaysia
Malaysia Consists of : • Peninsula (West-Malaysia) • East-Malaysia (Borneo) Tore Johnsen Page 5
Slide 6: DiGi in a nutshell
DiGi “in a nutshell” • Telecommunications company mainly focusing on mobile business • Established in 1995 – cellular business from 1997 • 1450 employees – 40% Malays, 39% Chinese, 16% Indians, 5% others – 60/40 split male/female • 3rd player in Malaysia after consolidation • 2.06 million customers
Slide 7: Senior Management
Senior Management Tore Johnsen Internal Audit (5) Tore Johnsen Special Unit Internal Audit (5) Chief Operating Officer Tan LS Chief Operating Officer Tan LS (4) (Cost Centers) (4) International Corporate International Corporate Carrier Services / Mobile Services Technical (486) Finance (195) Communi
Slide 8: Market players
Market players Mobile Business: •Celcom 40.3 % •Maxis 39.7 % •DiGi 20 % Fixed: Telekom Malaysia (dominance) Tore Johnsen Page 8
Slide 9: Market growth of approximately 2 million customers per year
the market growth is still at approximately 2 million customers per year customer development 3 Johnsen Tore Page 9
Slide 10: Market development and trends
the market growth is still at approximately 2 million customers per year market development and trends More than 95% of the growth is contributed by prepaid customers. The mergers have recently reduced the number of operators to 3 and are now visible to the consumers with 3 brands. All operators hav
Slide 11: DiGi showing sustainable growth, passed 2 million customers
DiGi is showing sustainable growth, and has passed the 2 million milestone customers (‘000) DiGi’s market share is 20.0 % 6 Johnsen Tore Page 11
Slide 12: DiGi strengthened the brand through market activities in Q3 2003
during Q3-2003 , DiGi has strengthened the brand through significant market activities 7 Johnsen Tore Page 12
Slide 13: Local call rate: talk more, pay less
during Q3-2003 , DiGi has strengthened the brand through significant market activities automatic adjusting rates – talk more, pay less Local calls for as low as 40 sen per minute 50 sen per minute Local call rate 45 sen per minute 40 sen per minute usage above RM30 above RM60 per month per month RM1
Slide 14: DiGi Historical Financial Performance
DiGi Historical Financial Performance RM million Revenue / EBITDA % EBITDA 1292 486 1084 35% 997 20% 360 45% 301 634 51% 208 460 38% 391 100% 138 33% 30% 33% 30% -4% (15) 98 99 00 01 2001 2002 98 99 00 01 2001 2002 30th April * 30th April * Total Revenue EBITDA Margin (%) Profit Before Tax Profit Af
Slide 15: Strong quarter 3 2003
strong quarter 3 2003 Customer growth of 41% to 2.06 million from Q3 2002 of 1.45 million. Revenue growth of 35% to RM434.2 million compared to Q3 2002. YTD revenue growth of 33% to RM1.23 billion. EBITDA growth of 53% to RM167.5 million (39% EBITDA margin) from RM109.7 million in Q3 2002 (34% EBITD
Slide 16: Reported P&L
reported P&L RM million Q3 2003 Q3 2002 YTD Q303 YTD Q302 Revenue 434.2 322.4 1,227.2 919.8 EBITDA 167.5 109.7 486.4 326.8 EBITDA % 39% 34% 40% 36% EBIT 58.9 24.4 168.7 155.6 Profit before Tax 43.0 10.5 120.1 111.6 Profit after Tax 33.2 5.9 86.2 78.0 EPS (sen) 4.4 0.8 11.5 10.4 11Johnsen Tore Page 1
Slide 17: Q3 compared to Q2 2003
Q3 compared to Q2 2003 RM million Q3 2003 Q2 2003 Growth % Revenue 434.2 398.5 9% EBITDA 167.5 154.6 8% EBITDA % 39% 39% - EBIT 58.9 49.3 19% Profit before Tax 43.0 33.5 28% Profit after Tax 33.2 23.1 44% EPS (sen) 4.4 3.1 44% 12Johnsen Tore Page 17
Slide 18: Positive operating cash flow
positive operating cash flow operating cash flow* Positive operating Cash Flow since Q1 2003. * Operating Cash Flow = EBITDA - CAPEX 13Johnsen Tore Page 18
Slide 19: Conscious cost control and modern platforms keep cost down
with conscious cost control and modern platforms DiGi is able to keep the cost down EBITDA & Capex While running improvement projects in areas like Customer Service, maintenance and product development, DiGi is still controlling the cost. Introduction of one additional vendor for network services, a
Slide 20: Promising revenue growth with 9% Q2-Q3
DiGi shows promising revenue growth with 9% Q2-Q3 revenues / EBITDA % Consumers are enjoying improved coverage and quality in the network – MOU has shown a promising trend. 15Johnsen Tore Page 20
Slide 21: Increased usage after Q2 slowdown: ARPU
consumers are showing increased usage after the slowdown in Q2 ARPU (MYR) ARPU has stabilized and is showing a positive trend. More than 13% of mobile revenue comes from VAS services. 16Johnsen Tore Page 21
Slide 22: EDGE overview
EDGE overview DiGi Network upgrade is on schedule with an EDGE ready network in Klang Valley by middle of January , 2004. DiGi is upgrading its BTS and Core switching nodes in Klang Valley which not only enables EDGE in the Access network but also introduces: • Adaptive Multi Rate (AMR) • Enhance Fu
Slide 23: Coverage overview
coverage overview DiGi continues to expand aggressively by opening new service areas and enhancing existing areas. More than 27% increase in BTS sites this year (end Q3 2003) addressing Coverage, Quality, and Capacity needs. DiGi will use its 2 MHz EGSM 900 band to expand coverage and improve qualit
Slide 24: Operations overview
operations overview DiNAMICS, DiGi’s network management system continues to increase our operational efficiency: Efficient network On-line trouble monitoring ticketing Real time Faster fault Network status for analysis Customer Care Mobile despatch for technicians 20Johnsen Tore Page 24
Slide 25: The outlook is promising for DiGi
the outlook is promising for DiGi The growth will mainly come from prepaid customers and DiGi expects to be able to grow its market share in 2004 Customer and revenue growth through: • Customer focus • Innovative products and services • User friendly solutions • High quality network experience • Cov
Slide 26: Thank you
brought to you by thank you 23Johnsen Tore Page 26