Maxis Bhd. · MYX:MAXIS
Maxis Bhd — FY2015 Earnings Presentation
25 slides from Maxis Bhd's earnings presentation, Feb 4, 2016
Slide 1: Financial Results 4Q 2015 & FY2015
Financial Results 4Q 2015 & FY2015 4 February 2016 1
Slide 2: 2015 – A winning year led by solid revenue growth
2015 – A winning year led by solid revenue growth • Winning market share; solid prepaid and improving core postpaid performances • Bundling and all-in-one pricing attracting high ARPU customers; mitigating voice and SMS revenue decline • 4G LTE network leadership and product/service innovations as s
Slide 3: Strong numbers across the board
Strong numbers across the board +3.8% +4.1% +0.9% Service Revenue EBITDA PAT FY15 RM8,539 mn FY15 RM4,425 mn FY15 RM1,960 mn FY14 RM8,229 mn FY14 RM4,251 mn FY14 RM1,943 mn +6.2% +2.7% +21.0% Prepaid Revenue Core Postpaid Revenue Capex FY15 RM4,184 mn FY15 RM3,657 mn FY15 RM1,304 mn FY14 RM3,940 mn
Slide 4: Delivered solid service revenue growth in a competitive environment
Delivered solid service revenue growth in a competitive environment Service Revenue Total RGS and Blended ARPU (RM mn) 54 55 53 53 51 +3.2% +3.8% +0.1% 11,864 12,192 12,214 11,956 11,579 2,158 2,160 8,229 8,539 2,094 4Q14 3Q15 4Q15 FY14 FY15 4Q14 1Q15 2Q15 3Q15 4Q15 Subscribers (‘000) Blended ARPU (
Slide 5: Strong prepaid; 6.2% yoy revenue growth
Strong prepaid; 6.2% yoy revenue growth Prepaid Revenue Prepaid RGS and ARPU (RM mn) 39 39 39 38 36 +3.4% +6.2% -3.3% 3,940 4,184 8,992 9,068 8,850 8,656 8,520 1,076 1,041 1,007 4Q14 3Q15 4Q15 FY14 FY15 4Q14 1Q15 2Q15 3Q15 4Q15 Subscribers (‘000) ARPU (RM/mth) • Strong prepaid revenue momentum on th
Slide 6: Improved subscriber mix; added more than 100k high-value MaxisOnePlan customers in 4Q
Improved subscriber mix; added more than 100k high- value MaxisOnePlan customers in 4Q Postpaid Revenue Postpaid RGS and ARPU (RM mn) (RGS ex-WBB) 102 +2.6% +0.4% 98 98 96 97 +3.8% 3,917 3,931 2,809 2,823 2,796 2,784 2,765 985 1,011 974 4Q14 3Q15 4Q15 FY14 FY15 4Q14 1Q15 2Q15 3Q15 4Q15 Subscribers (
Slide 7: High performing network and rising 4G adoption driving data usage
High performing network and rising 4G adoption driving data usage Data Volume by Technology Mobile Internet Penetration LTE Device (‘000 TB) Data Usage Smart-phone Penetration 60 50 2,831 71% 70% 71% 70% 72% 2,368 50 45 42 2,037 36 1,613 40 32 1,240 1,924 30 1,765 75% 76% 1,537 72% 73% 1,350 1,393 6
Slide 8: Accelerated 4G LTE roll-out; widest population coverage
Accelerated 4G LTE roll-out; widest population coverage Capex Network Population Coverage (RM mn) 23.7% 29.2% 4Q14 4Q15 14.6% 12.9% 15.2% 2G 95% 96% 3G 88% 92% 1,078 1,304 LTE 33% 71% 635 504 316 2G & 3G Modernisation 78% 88% 4Q14 3Q15 4Q15 FY14 FY15 Capex/Total Revenue • 71% 4G LTE pop coverage bas
Slide 9: Underlying EBITDA stable excluding unrealised forex impact
Underlying EBITDA stable excluding unrealised forex impact Normalised EBITDA Normalised Cost Development (RM mn) (% of Total) +8.4% +4.1% 52.3% 1,089 1,055 1,055 4,138 4,176 52.2% +0.9% 7.3 7.3 6.6 6.9 7.5 5.5 4.9 5.6 51.6% 51.8% 5.7 5.4 4.8 4.7 5.7 4.4 4.5 50.2% 1,121 4,251 4,425 32.3 31.7 1,111 32
Slide 10: Profit after tax
Profit after tax Normalised Profit After Tax Accelerated Depreciation (RM mn) (RM mn) +7.2% +0.9% -6.5% 1,943 1,960 269 190 113 510 477 445 50 27 4Q14 3Q15 4Q15 FY14 FY15 4Q14 3Q15 4Q15 FY14 FY15 • YTD PAT excludes RM143 million accelerated depreciation net of tax (2014: RM185 million of accelerated
Slide 11: Spectrum reallocation
Spectrum reallocation • Notices received on 1 Feb 2016 on 900 MHz and 1800 MHz spectrum reallocation • 900 MHz would be reduced to 2x10 MHz and 1800 MHz to 2x20 MHz • Conversion from annual Apparatus Assignment fee to Spectrum Assignment (SA) fee • In a press announcement on the same day, MCMC noted
Slide 12: FY2016 Priorities and Outlook
FY2016 Priorities and Outlook Becoming the preferred choice for 1 digital experience seekers Build the best network for superior 2 “Always On” data experience Service revenue, absolute EBITDA and base capex at similar levels to FY2015 Embarking on digitalisation 3 transformation 4 Continued focus on
Slide 13: Q&A
q&a Visit our website for more informa0on @ www.maxis.com.my/investor 1312
Slide 14: Thank you
13 Upgrade your phone when you want, not when you're told. Introducing Maxis Zerolution, the easiest way to own the latest smartphones every year from as low as *"35/mth. Join the Zerolution today. thank you
Slide 15: Disclaimer
Disclaimer This presentation by Maxis Berhad (“Maxis”) contains forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”
Slide 16: Appendices
Appendices 1615
Slide 17: Important definitions/notations
Important definitions/notations • Service Revenue: Group revenue excluding device & hubbing revenues • EBITDA margin on Service Revenue: EBITDA that has been adjusted for costs solely related to the provision of service revenue defined above • Normalised PAT: Adjusting for accelerated depreciation,
Slide 18: Reported Consolidated Income Statement
Reported Consolidated Income Statement Reported (RM mn) 1Q15 2Q15 3Q15 4Q15 QoQ chg FY2014 FY2015 YoY chg REVENUE 2,149 2,110 2,166 2,176 +0.5% 8,389 8,601 +2.5% Direct Exp (713) (650) (689) (676) (2,707) (2,728) Indirect Exp (389) (359) (456) (338) (1,453) (1,542) Total Exp (1,102) (1,009) (1,145)
Slide 19: Normalised Consolidated Income Statement
Normalised Consolidated Income Statement Normalised (RM mn) 1Q15 2Q15 3Q15 4Q15 QoQ chg FY2014 FY2015 YoY chg REVENUE 2,149 2,110 2,166 2,176 +0.5% 8,389 8,601 +2.5% Direct Exp (713) (650) (687) (678) (2,707) (2,728) Indirect Exp (353) (356) (368) (377) (1,431) (1,448) Total Exp (1,166) (1,000) (1,0
Slide 20: Cash Flow Statement
Cash Flow Statement RM mn 1Q15 2Q15 3Q15 4Q15 FY2014 FY2015 RM mn 3Q15 4Q15 Cash flow from operating activities 856 841 1,109 1,267 4,107 4,073 Debt# 9,105 9,130 Cash 1,303 1,296 Cash flow used in investing activities (256) (398) (429) (796) (1,232) (1,879) Net Debt 7,802 7,834 Purchase of property, p
Slide 21: Key Financial Data
Key Financial Data REVENUE BREAKDOWN (RM mn) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Total Revenue 2,327 2,294 2,239 2,224 2,119 2,082 2,065 2,123 2,149 2,110 2,166 2,176 - Service 2,143 2,136 2,127 2,108 2,037 2,049 2,049 2,094 2,127 2,094 2,158 2,160 - Mobile 2,066 2,062 2,051
Slide 22: Key Financial Data
Key Financial Data REPORTED - FINANCIALS (RM mn) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Total Revenue 2,327 2,294 2,239 2,224 2,119 2,082 2,065 2,123 2,149 2,110 2,166 2,176 Total Expenses 1,205 1,129 1,187 1,253 1,046 996 995 1,123 1,102 1,009 1,145 1,014 - Direct 801 787 738 7
Slide 23: Key Financial Data
Key Financial Data NORMALISED - FINANCIALS (RM mn) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Total Revenue 2,327 2,294 2,239 2,224 2,119 2,082 2,065 2,123 2,149 2,110 2,166 2,176 Total Expenses 1,203 1,125 1,078 1,141 1,044 1,019 986 1,089 1,066 1,000 1,055 1,055 - Direct 801 787 7
Slide 24: Key Operational Data
Key Operational Data CUSTOMERS (RGS30) (‘000) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Mobile Subs 11,532 11,310 11,003 11,048 11,076 11,146 11,338 11,864 12,192 12,214 11,956 11,579 - Prepaid 8,289 8,054 7,759 7,797 7,822 7,903 8,120 8,656 8,992 9,068 8,850 8,520 - Postpaid 2,634
Slide 25: Key Operational Data
Key Operational Data CUSTOMERS (Market Definition) (‘000) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Mobile Subs 14,136 13,873 13,213 12,893 12,602 12,401 12,415 12,913 13,260 13,269 13,110 12,694 - Prepaid 10,780 10,497 9,845 9,528 9,238 9,042 9,081 9,624 9,979 10,051 9,927 9,567 -