Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — MobileOne — FY2008 Earnings Presentation
24 slides from Singapore Exchange's earnings presentation, Jan 16, 2009
Slide 1: FY2008 Results Presentation
FY2008 Results Presentation 16 January 2009
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
Slide 3: Agenda
Agenda R Results lt overview i Financial performance Operating performance Developments & outlook 2
Slide 4: Overview
Overview z Operating revenue remained stable at S$801m Financial z 4Q08 EBITDA margin improved QoQ to 44.0%, 44 0% bringing highlights FY2008 EBITDA margin to 42.9% of service revenue for FY2008 z Excluding tax adjustment, net profit after tax decreased 4.5% to S$150m z Net additions of 10,000 custo
Slide 5: Agenda
Agenda R Results lt overview i Financial performance Operating performance Developments & outlook 4
Slide 6: Revenue & margin
Revenue & margin Operating revenue breakdown (S$m) EBITDA & EBITDA margin on service revenue Service revenue: +1.6% -0.3% 44.1% 42.9% 803 801 Handset sales -1.3% 76 62 127 137 International call services EBITDA (S$m) Mobile telecom- munications Margin (%) 321 317 600 601 FY2007 FY2008 FY2007 FY2008
Slide 7: Cost breakdown
Cost breakdown Cost of sales/Operating revenue Other operating expenses/ Operating revenue 38.1% 38.4% 36.9% 37.6% 2.6% 2.8% Other G&A expenses 10.1% Other costs 4.8% 4.8% 9.1% Facilities 2.4% 2.1% expenses Traffic Doubtful debt 6.1% 6 5% 6.5% expenses provision i i 14.5% 15.4% 5.2% Deprec. & 4.9% L
Slide 8: Bottom line & cash flow
Bottom-line Bottom line & cash flow PAT & PAT margin Free cashflow (FCF) (S$m) on service revenue -8.7% 23.6 21 6 21.6 20 3 20.3 15 Tax effect (S$m) PAT (S$m) 173 158 157 150 Normalised margin (%) Margin (%) FY2007 FY2008 FY2007 FY2008 7
Slide 9: Capex & Financial Leverage
Capex & Financial Leverage S$m FY2008 FY2007 Change Capex 94.1 56.3 67.1% Cash & cash equivalents 17.8 23.1 -22.9% Net debt 232.2 261.9 -11.3% % Net assets 223.2 201.9 10.5% Net debt/equity (%) 104.0 129 7 129.7 -19 19.8% 8% Net debt/EBITDA (x) 0.7 0.8 -12.5% EBITDA/Interest (x) 41.8 33.9 23.3% Net
Slide 10: Coverage & Return ratios
Coverage & Return ratios Earnings, free cash flow (FCF) & ROE & ROCE (%) payout per share (cents) 70.6 19.3 18.5 ROE 17.6 58.8 16.8 Earnings per 15.4 share ROCE 13.4 Free cash flow per 32.2 32.8 share Payoutt per P share FY2007 FY2008 FY2007 FY2008 FY2008 FCF yield of 11.7% and payout yield of 8.9%
Slide 11: Agenda
Agenda R Results lt overview i Financial performance Operating performance Developments & outlook 10
Slide 12: Customer base & revenue mix
Customer base & revenue mix Customer base (‘000) Mobile telecommunications revenue mix (S$m) Prepaid Prepaid Postpaid Postpaid 1,631 1,611 1,621 1,535 1,554 16.9 17.1 17.9 18.8 17.7 12% 738 748 46% 691 734 679 137.8 136.0 135.5 130.3 127.9 88% 856 863 877 882 883 54% 4Q07 1Q08 2Q08 3Q08 4Q08 4Q07 1Q
Slide 13: Market share
Market share Postpaid market share Prepaid market share 50% 50% 40% 40% 30% 30% 27.2% 24.4% 20% 20% 10% 10% 0% 0% 4Q07 1Q08 2Q08 3Q08 Nov-08 4Q07 1Q08 2Q08 3Q08 Nov-08 Note: Based on available figures from IDA 12
Slide 14: Acquisition, retention costs & churn trend
Acquisition retention costs & churn trend Acquisition, Average acquisition & retention costs Monthly churn rate* per customer* (S$) Acquisition Retention 3.0% 218 209 190 173 167162 2.0% 155 1.8% 148 1 6% 1.6% 1 7% 1.7% 147143 132 136 135 1.5% 131 1.3% 1.2% 1.2% 1 0% 1.0% 0.0% 2007 2008 4Q07 1Q08 2Q
Slide 15: ARPU & MOU trend
ARPU & MOU trend Monthly prepaid & postpaid ARPU* (S$) Monthly MOU per sub (mins) Prepaid Postpaid Prepaid Postpaid 65.6 66.1 65.1 65.4 63.9 361 362 62 7 62.2 62.7 352 350 355 352 350 223 199 190 188 185 195 175 19.6 20.3 19.1 17.3 17.8 16.3 16.4 2007 2008 4Q07 1Q08 2Q08 3Q08 4Q08 2007 2008 4Q07 1Q0
Slide 16: 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 M bil D Mobile Data t 24.1% 23.4% 23.2% 23.8% 31.7 31.6 31.7 31.5 22.6% 22.7% 21.6% 28.4 28 0 28.0 24.1 13.9% 14.2% 14.0% 13.6% 14.1% 13.4% 13.9% 7.7% 9.5% 9.0% 9.1% 9.3%
Slide 17: Key products and services launched in 2008
Key ypproducts and services launched in 2008 z Enhanced mobile tariff plans:- Î Per second billing Î Multi Line Saver Î Unlimited local calls to 3 M1 numbers Î Sun Share plan p Î DIY plan z Launched fixed broadband service, with speeds up to 100Mbps z Upgraded cellular network to nationwide downlink
Slide 18: International call services
International call services M1 international retail minutes (million) +69.6% 526 z For FY2008:- Î Revenue for international call services increased 7.9% YoY to S$137m 310 Î International retail traffic grew 70% to 526 million mins Î Targeted promotions in the value segments FY2007 FY2008 17
Slide 19: Agenda
Agenda R Results lt overview i Financial performance Operating performance Developments & outlook 18
Slide 20: Developments and outlook for 2009
Developments and outlook for 2009 z Operating conditions to remain challenging Ä Global economic crisis Ä Mobile penetration at 130%* z Current developments Ä Continue to transform M1 from a single play mobile operator to a dynamic multi- play operator Ä Reinforce customer-centred initiatives Upgr
Slide 21: Developments and outlook for 2009 (con't)
Developments and outlook for 2009 (con’t) (con t) z Next Generation National Broadband Network (NBN) Î M1 submitted a bid to be the Operating Company to build and operate the active infrastructure of the NBN Î Award of winning bid expected in 1Q09 Î A neutral and transparent Open Access environment
Slide 22: Capital management
Capital management Cash distribution to shareholders (S$m) Capital return Final Dividend Track record of strong free Interim Dividend cash flow generation and healthy dividend yield 22.2 12.2 z M1 is mindful of the current 11.0 economic climate and credit crunch 83 8.3 7.5 7.2 8.1 z Likely to mainta
Slide 23: Guidance for FY2009
Guidance for FY2009 z Company operations to remain stable Financial guidance z Capex between S$100m to S$120m Commitment to z Aim to maintain payout ratio of 80% shareholders 22
Slide 24: Thank you
wm Thank you