Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Advanced Info Service — Investor Day (June 2014)
15 slides from Singapore Telecommunications's investor day presentation, Jun 3, 2014
Slide 1: Advanced Info Service Plc. – SingTel Investor Day 2014
Advanced Info Service Plc. SingTel Investor Day 2014 Singapore, 3 June 2014
Slide 2: AIS at glance
AIS at glance No.1 52% revenue market share 26m 3G-2.1GHz users mobile operator in Thailand 42m users Breakdown of Service Revenue Breakdown of customers Quick introduction • Officially launched 3G-2.1GHz service in May-13 and expanded coverage to all 77 provinces with 90% population coverage under
Slide 3: Deliver both growth & shareholder return
Deliver both growth & shareholder return Transitional period of telecom industry Secure Unleash Better Growth business operation data capacity cost structure 3G-2.1GHz covers Transition from unlock concession expiry 90% population concession to license system 2.1GHz/ 900MHz/ 1800MHz Shareholder 100%
Slide 4: Benefit from rising 3G adoption
Benefit from rising 3G adoption Regulatory fee saving 20-30% VS 5.25% Revenue sharing on 900/1800MHz License fee on 2100MHz BTO agreement % 3G Revenue Regulatory fee 59% % to service revenue include net IC 26% 23% 20% 19% 0% FY12 FY13 1Q14 FY12 FY13 1Q14 3G subscribers reached 62% Lower regulatory f
Slide 5: 3G Strategies
3G Strategies The best 3G network at competitive price To realized Regulatory fee saving on 3G-2.1GHz Push Increase 3G migration & subscription 3G handset adoption 700 direct sales 7% Dealers’ incentive Customer touch points • AIS 3G centers 0% • Shop expansion & renovation FY13 FY14 ZERO Mid-
Slide 6: Updates 3G-2.1GHz Migration & Network expansion
Updates 3G-2.1GHz Migration & Network expansion Population 3G to total 3G device Coverage subscribers penetration 75% (~32-33m) 62% 50% 90% 95% (26m) 46% 80% 40% 50% (~16m) (16m) (12m) (8m) FY13 1Q14 Target FY13 1Q14 Target FY13 1Q14 Target Mid-14 FY14 FY14 6
Slide 7: Affordable 3G models lined up
Affordable 3G models lined up AIS LAVA 3.5” AIS LAVA 4.0” AIS LAVA 4.5” Bt1,690 Bt2,390 Bt2,690 Galaxy Acer I-mobile Samsung Nokia X Hero 3G Bt3,990 Pocket Neo Liquid Z3S I-STYLE 2.5 Bt2,690 Bt2,590 Bt2,990 Bt1,390 7
Slide 8: 1Q14 financial highlight
1Q14 financial highlight (Unit: Bt mn) Service revenue ex. IC EBITDA Sales margin -1.8% YoY +1% YoY Flat QoQ +0.8% QoQ 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 % Service margin % EBITDA margin Net profit -4.5% YoY +7.5% QoQ 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 8
Slide 9: 2014 guidance (maintained)
2014 guidance (maintained) 6 – 8% 75% Flat Service revenue 3G 2.1GHz subscribers Consolidated (excluding IC) (50% using 3G devices) EBITDA margin • Contracted voice market • Flat from FY13 at 43.4% due • Accelerated non-voice to zero handset strategy growth in 2H13 +300bps Bt40bn 18% Depreciation Se
Slide 10: 4G auction timeline
4G auction timeline Indicative draft 2014 April Draft Information Memorandum (IM) May Public hearing June Official IM June Application submit July Announce prequalification bidders August Auction September Announced winning bidder September License award 10
Slide 11: Future growth
Future growth 3G 75% 900/1800MHz BTO Wired-broadband assets services • Target DENSE • 1800MHz for 4G LTE residential areas Expected auction in Aug-14 • Leverage extensive • 900MHz to strengthen 3G nationwide fiber Expected auction in Nov-14 transmission • Minimal investment in last mile extension Ca
Slide 12: Appendix
Appendix 12
Slide 13: Depreciation & Amortization
Depreciation & Amortization Breakdown of D&A Rising 3G investment will result in higher D&A but partly offset by lower 2G amortization +18% Bt16.5bn Bt0.9bn 3G 2.1GHz license amortization Bt0.9bn 1800MHz operational >Bt3bn The value of 2G network assets right amortization Bt0.4bn will be depleted in
Slide 14: Tier pricing – volume base
Tier pricing – volume base Fair usage policy: no real unlimited data offers Monthly fee Voice Data Throttling Wifi (minutes) Bt299 100 500MB 64Kbps unlimited unlimited 150 750MB Bt399 unlimited 64Kbps unlimited Bt599 300 1.5GB 64Kbps unlimited unlimited Bt799 400 2GB 128Kbps unlimited unlimited Bt99
Slide 15: 3G device bundling promotions
3G device bundling promotions For postpaid subscribers buying new 3G handset 50% package discount for 6 months Low-ends Mid-ends High ends smartphone smartphone smartphone Bt399 Bt599 Bt799 Bt999 Bt199 Bt299 Bt399 Bt499 3G handsets discount Condition: • subscribes monthly package • pays 6 months pac