Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Advanced Info Service — Investor Day (June 2017)
20 slides from Singapore Telecommunications's investor day presentation, Jun 9, 2017
Slide 1: Singtel Investor Day 2017
Singtel Investor Day 2017 Advanced Info Service Plc. 9 June 2017 Ticker: ADVANC (SET) AVIFY (ADR)
Slide 2: AIS: Digital Life Service Provider
AIS: Digital Life Service Provider Continue leading in Expand strongly into Partner to offer differentiated “Mobile” “Fixed broadband” “Digital service” Service revenue Video 26% 48% • Bt31.4bn Commercial launch 4% • 57% Non-voice 21% in 2015 1Q17 40% • 36% Voice 4Q16 IoT Five Game • Covering 28 cit
Slide 3: 1Q17 Recap
1Q17 Recap YoY EBITDA QoQ EBITDA (Bt mn) +29% (Bt mn) +15% 198 YoY 153 QoQ 2,670 384 2,520 1,064 17,347 15,058 17,347 13,415 1Q16 Gross profit SG&A Others 1Q17 4Q16 Gross profit SG&A Others 1Q17 YoY NPAT QoQ NPAT (Bt mn) (Bt mn) +19% 89 3,932 2,844 -4% 2,289 39 1,074 60 QoQ 541 914 13 YoY 6,468 7,69
Slide 4: Mobile: lead in quality 4G network
Mobile: lead in quality 4G network 4G base station (‘000) 42 45 • Nationwide coverage of 98% • Deploy 2CA in all districts and 3CA in key cities 21 16 • Guaranteed by OOKLA as “Thailand’s fastest 6 mobile network” for two consecutive years 1Q16 2Q16 3Q16 4Q16 1Q17 Category 1 4G handset penetration 3
Slide 5: Mobile: focus on postpaid segment, capturing high-value customers
Mobile: focus on postpaid segment, capturing high-value customers Focus on mid- to high ARPU subscription • Offer high-end smartphones with discounts up to 40% e.g. AIS HOT DEAL with committed monthly package of Bt499+ • Target mid-end users by offering discounts up to 70% e.g. SUPER COMBO and SUPER
Slide 6: FBB: expand subscriber base and ARPU
FBB: expand subscriber base and ARPU Key highlight figures Current offerings • 1Q17, AIS Fibre had 374k, a net add of 72k, with • Segmented offerings in two types of package: coverage in 28 cities. 1) pure broadband connection • Revenue contribution increased to 1.7% of service 2) broadband connecti
Slide 7: Digital service: create differentiation on AIS PLAY & PLAYBOX with new contents
Digital service: create differentiation on AIS PLAY & PLAYBOX with new contents • Registered 1.5mn active users on AIS PLAY and 300k on AIS PLAYBOX • Contents from HBO, FOX, NBA, Cinemax, Warner, Viu, etc. were added to respond to higher demand for HD video streaming and enhance customers’ stickines
Slide 8: Digital service: expand into Enterprise Cloud with global partners
Digital service: expand into Enterprise Cloud with global partners • IT services • Service & Monitoring • IT consulting Strategic Partnership to bring Global Cloud to Local • Cloud storage • Security Collaborations in • Productivity • Network Partnership • Cloud Solution Provider • Integrated Billin
Slide 9: FY17 Guidance
FY17 Guidance 2017 • Improved network quality and increased Service revenue (ex IC) +4-5% YoY smartphone adoption Increase with • Support by higher smartphone adoption Handset sales • Continue migration of 2G users through near-zero margin targeted handset subsidies • Improved revenue and cost manag
Slide 10: APPENDIX
APPENDIX 10
Slide 11: Financial Highlights
Financial Highlights FY17 Bt mn 1Q16 4Q16 1Q17 %YoY %QoQ Guidance Service revenue ex. IC 30,148 31,617 31,364 ▲4.0% ▼0.8% +4-5% Sales revenue 5,663 8,315 6,407 ▲13% ▼23% increase Total revenue 37,252 41,319 38,858 ▲4.3% ▼6.0% Cost of service ex. IC (12,693) (15,155) (15,203) ▲20% ▲0.3% SG&A (8,095)
Slide 12: Mobile: focused on acquiring quality subscribers
Mobile: focused on acquiring quality subscribers postpaid prepaid Blended postpaid prepaid ARPU (Bt/sub/month) Subscribers (mn) 608 608 597 600 579 33.5 33.5 33.8 34.6 34.0 251 248 248 251 244 194 188 186 186 181 5.4 5.8 6.1 6.4 6.7 MoU (min/sub/month) 320 279 246 226 215 205 313 305 296 Net additio
Slide 13: Historical profitability and CAPEX trend
Historical profitability and CAPEX trend EBITDA margin 45% 44% 46% 42% 42% 40% 36% 33% 33% 32% 32% 32% Industry AIS 2011 2012 2013 2014 2015 2016 NPAT margin 24% 24% 24% 25% 20% 18% 14% 13% 13% 14% Industry 9% 9% AIS 2011 2012 2013 2014 2015 2016 CAPEX to service revenue ex. IC 41% 24% 28% 27% 48 AI
Slide 14: Maintained strong financial position for future growth
Maintained strong financial position for future growth 1Q17 Balance Sheet 1Q17 Cash flow (Bt bn) (Bt bn) Cash increase others A/P Cash decrease spectrum license 15 32 spectrum license payable Operating Investing Financing Net cash 113 73 Assets Liabilities 14 12 B/S 241 9.2 279 1Q17 6.7 95 interest-
Slide 15: Mobile market share by revenue
Mobile market share by revenue Service revenue (Bt bn) +6% YoY (against GDP of + 3.2%) 221 223 231 244 207 24% 183 16% 17% 19% 15% 15% 32% 30% 29% 26% 31% 32% 54% 52% 52% 52% 50% 53% 2011 2012 2013 2014 2015 2016 AIS Operator 2 Operator 3 Source: company information, AIS’s calculation 15
Slide 16: Mobile market share by subscribers
Mobile market share by subscribers Total subscriber (mn) 92 96 83 83 90 75 25% 25% 27% 25% 23% 25% 29% Operator 3 30% 31% 27% 31% 32% Operator 2 45% 46% 46% AIS 44% 43% 46% 2011 2012 2013 2014 2015 * 2016 Postpaid subscriber (mn) Prepaid subscriber (mn) 81 83 68 74 73 68 24% 24% 14 18 25% 25% 21% 25
Slide 17: Price plan: Gearing toward limited data to better monetize
Price plan: Gearing toward limited data to better monetize Postpaid (limited data) Popular prepaid top-ups (limited data) Monthly Total 4G/3G 4G Voice call Mao Mao Max Speed fee GB (min) (baht) Top up Data Duration 299 1.5GB 1.5GB - 100 (baht) 399 5GB 4GB 1GB 150 9 100MB 24 hr 488 10GB 8GB 2GB 200 1
Slide 18: Distribution Channel: expanding touch points to more than 400k
Distribution Channel: expanding touch points to more than 400k AIS Branded Shop Exclusive branded shop by AIS Buddy partner (Telewiz) 100+ shops 450+ shops 1,000+ shops Electronic Distribution Channels Modern Trade Outlets 400,000+ points 10,000+ shops (refill-on–mobile agent ) Auto top-up KIOSK 18
Slide 19: Fixed broadband market
Fixed broadband market Subscriber market share Total 7mn subs (est.) 4% end of 2016 21% 40% 35% DL/UL Price/mt Added Tech DL/UL Price/mth Added Tech DL/UL Price/mth Added Tech speed (Bt) service speed (Bt) service speed h (Bt) service VDSL 30/10 590 FTTx 50/20 750 FTTx 30/5 599 - FTTx 50/10 590 FTTx
Slide 20: 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