Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — MobileOne — FY2009 Earnings Presentation

25 slides from Singapore Exchange's earnings presentation, Jan 19, 2010

  1. Slide 1: FY2009 Results Presentation

    FY2009 Results Presentation 19 January 2010

  2. Slide 2: Forward looking statements – Important note

    Forward looking statements – Important note This presentation and the following discussion may contain forward looking statements b M by MobileOne bil O Ltd (“M1”) relating l ti tto fifinancial i l trends t d forf future f t periods i d Some of the statements contained in this presentation or arisin

  3. Slide 3: Overview

    Overview z Operating revenue declined 2.4% to S$782m Financial z 4Q09 EBITDA margin improved QoQ to 44.0%, bringing highlights FY2009 EBITDA margin to 44.2% of service revenue for 2009 z Net profit at S$150m, comparable to 2008 z Mobile customers: 1.76m (Net increase: 40,000 QoQ) Operating highlight

  4. Slide 4: Agenda

    Agenda Financial performance Operating performance Developments & outlook 3

  5. Slide 5: Operating revenue (S$m)

    Operating revenue (S$m) -2.4% 801 782 7 62 Fixed network +11.1 81 services 137 128 Handset sales +14.8% International call services 216 195 191 5 186 188 601 36 Telecommunications 16 14 16 15 Services 33 32 33 32 32 566 145 140 142 141 143 4Q08 1Q09 2Q09 3Q09 4Q09 FY2008 FY2009 4

  6. Slide 6: Cost of sales (S$m)

    Cost of sales (S$m) +8.7% 327 301 80 +34.8% Other costs 81 54 +25.6% Leased 40 Circuit Costs 56 100 52 5 T ffi Traffic 21 Expenses 74 72 76 79 20 14 19 19 20 13 14 Handset cost 12 13 13 137 14 128 14 14 14 50 29 26 29 33 4Q08 1Q09 2Q09 3Q09 4Q09 FY2008 FY2009 Total cost-to-revenue ratio for FY09: 77

  7. Slide 7: Other operating expenses (S$m)

    Other operating expenses (S$m) -10.7% 308 -4.5% Other G&A 22 expenses 278 39 17 Facilities +5.8% 17 29 expenses 4 Doubtful debt provision 124 128 Depreciation & 74 71 amortisation 69 68 67 6 5 4 9 5 4 7 7 7 7 Advertising & 5 4 1 1 20 21 promotion 33 32 31 32 32 Staff costs 4 5 5 7 86 76 6 17 19 18 1

  8. Slide 8: EBITDA (S$m) & margin (%)

    EBITDA (S$m) & margin (%) -2.1% 317 310 +0.7% +5.4% 5 4% EBITDA 79 77 78 75 79 4Q08 1Q09 2Q09 3Q09 4Q09 FY2008 FY2009 4Q08 1Q09 2Q09 3Q09 4Q09 FY2008 FY2009 EBITDA marging 44 0% 44.0% 44 6% 44.6% 44 8% 44.8% 43 4% 43.4% 44 0% 44.0% 42 9% 42.9% 44 2% 44.2% (on service revenue) 7

  9. Slide 9: Profit after tax (S$m) & margin (%)

    Profit after tax (S$m) & margin (%) +0.1% 150 150 +1.6% +8.9% PAT 42 37 37 34 37 4Q08 1Q09 2Q09 3Q09 4Q09 FY2008 FY2009 4Q08 1Q09 2Q09 3Q09 4Q09 FY2008 FY2009 PAT margin 20.5% 24.3% 21.2% 19.7% 20.7% 20.3% 21.4% (on service revenue) 8

  10. Slide 10: Capex & free cash flow

    Capex & free cash flow Capex (S$m) Free cash flow (S$m) Capex Free cash flow -34.7% 158 +26.5% -34.4% +88.5% 119 103 94 +25.3% >300.0% 74 52 49 39 35 23 15 9 8 1 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 9

  11. Slide 11: Financial Leverage

    Financial Leverage S$ S$m FY2009 FY2008 Ch Change Cash & cash equivalents 7.4 17.8 -58.4% Net debt 261 6 261.6 232 2 232.2 12 7% 12.7% Net assets 256.1 223.2 14.7% Net debt/equity (x) 1.02 1.04 -1.8% Net debt/EBITDA (x) 0.8 0.7 15.2% EBITDA/Interest (x) 47.9 41.8 14.6% Net assets per share (cents) 2

  12. Slide 12: Agenda

    Agenda Financial performance Operating performance Developments & outlook 11

  13. Slide 13: Customer base & revenue mix

    Customer base & revenue mix Customer base (‘000) Mobile telecommunications revenue mix (S$m) Postpaid Prepaid Postpaid Prepaid 1,718 1,758 1 669 1,669 1,630 1,619 17.7 18.4 17.7 17.5 18.1 13% 824 846 748 740 783 48% 127.7 122.6 124.0 122.7 124.7 87% 882 879 886 893 912 52% 4Q08 1Q09 2Q09 3Q09 4Q09 4

  14. Slide 14: Market share

    Market share Overall market share* Postpaid & prepaid market share* Postpaid 27.0% 26.7% 26.5% 26.4% 26.4% 25.7% 25.2% 25.6% 25.6% 25.7% 4Q08 1Q09 2Q09 3Q09 Nov 09 Nov-09 Prepaid 24.3% 23.7% 24.7% 24.8% 25.0% 4Q08 1Q09 2Q09 3Q09 Nov-09 4Q08 1Q09 2Q09 3Q09 Nov-09 * - Based on available figures from I

  15. Slide 15: Acquisition cost & churn trend

    Acquisition cost & churn trend Acquisition cost Monthly churn rate (postpaid) per postpaid customer (S$) +54.6% +28.9% +7 2% +7.2% 303 1.7% 1.7% 1.6% 1.6% 1.6% 1.6% 247 253 1.5% 235 236 210 196 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 Note: Acquisition cost includes the

  16. Slide 16: Postpaid monthly ARPU & MOU

    Postpaid monthly ARPU & MOU Postpaid monthly ARPU (S$) Postpaid monthly MOU per sub (mins) +2.9% -1.6% 0% +1.1% +2.2% -5.5% 350 360 360 356 62.2 63.9 349 352 60.7 61.2 60.4 338 59.7 59.9 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 Note: Postpaid ARPU is re-stated to include

  17. Slide 17: Prepaid monthly ARPU & MOU

    Prepaid monthly ARPU & MOU Prepaid monthly ARPU (S$) Prepaid monthly MOU per sub (mins) +15.7% +4.5% +25.6% -12.2% -12.1% 249 258 250 244 247 -2.0% 223 199 16.4 16.3 17.3 15.5 15.2 14.7 14.4 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 Note: Prepaid ARPU is re-stated to incl

  18. Slide 18: Data ARPU & non-voice contribution trend

    Data ARPU & non-voice non voice contribution trend Data plan ARPU (S$) Non-voice and data contribution to service revenue (%) SMS Mobile Data -11.2% 27.1% 21 8% -21.8% 26.4% 26.0% 25.1% 25.1% -4.0% 24.1% 23.4% 28.4 24 1 24.1 14 4% 14.4% 14 4% 14.4% 14 % 14.5% 22.6 22.8 22.3 22.2 14.6% 14.2% 21.4 14.

  19. Slide 19: International retail minutes (millions)

    International retail minutes (millions) International Call Services International retail minutes (mins) Revenue (S$m) -6.3% +38.2% 137 727 128 +29.1% -3.9% +10.9% 526 +0 3% +0.3% 204 33 33 174 184 32 32 32 158 166 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 18

  20. Slide 20: Key products and services launched in 2009

    Key ypproducts and services launched in 2009 z Launched iPhone z Enhanced enterprise products and services z Launched residential ADSL broadband services to complement cable offerings z Upgraded cellular network to downlink speeds of 21Mbps nationwide and 28Mbps in selected areas z Launched Take3 pr

  21. Slide 21: Agenda

    Agenda Financial performance Operating performance Developments & outlook 20

  22. Slide 22: Developments and outlook for 2010

    Developments and outlook for 2010 Uncertain z Global economic outlook remains uncertain outlook z Singapore economy to grow between 3% to 5% in 2010 z Roaming likely to continue to recover z Increasing take-up of smartphone and related applications and services will drive data growth z Continue to i

  23. Slide 23: Developments and outlook for 2010

    Developments and outlook for 2010 z Commercial launch of NGNBN in 2Q 2010 will:- Î Likely increase in competitive activities Î New opportunities including fixed voice Fixed z Continue to enhance fixed service offerings for both segmentt retail and corporate segments z IPTV:- Î Monitor developments o

  24. Slide 24: Guidance for 2010

    Guidance for 2010 z Able to compete more effectively with NGNBN and Exciting iPh iPhone Prospects z Aim to grow revenue and mobile market share Financial z Capex between S$100m to S$120m guidance z Earnings to be comparable to 2009 z Aim to maintain payout ratio of 80% in medium term z Review capita

  25. Slide 25: Thank you

    wm Thank you

MobileOne — FY2009 Earnings Presentation on 6ix