Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — FY2014 Earnings Presentation

23 slides from Astro Malaysia Holdings Bhd's earnings presentation, Mar 31, 2014

  1. Slide 1: 4th quarter and FY14 results

    4th quarter and FY14 results 31st March 2014

  2. Slide 2: Disclaimer

    Disclaimer This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhad’s (“Astro”) financial condition, results of operations and business, and management’s strategy, plans and objectives for Astro. These statements include, without limitation, those that

  3. Slide 3: Key highlights of FY14 performance

    Key highlights of FY14 performance 3.5m to 3.9m customers Revenue +12% GROW RM4.27bn → RM4.79bn 52% to 56% HH penetration 43% to 47% viewership EBITDA +16% 84% on B.yond STBs, 3 out of 5 on HD RM1.39bn → RM1.62bn LEAD Watch, Listen, Read, Play Rollout of new multi-lingual UI Adex +15% RM504mn → RM58

  4. Slide 4: FY14 snapshot — growth strategy continues

    FY14 snapshot — growth strategy continues Highlights FY13 FY14 Growth TV households (000s)(1) 6,747 6,885 2% TV household penetration(2) 52% 56% 4pp TV household penetration (000s) 3,485 3,884 11% Pay TV households (000s) 3,276 3,442 5% NJOI households (000s) 209 442 111% Pay TV gross adds (000s) 45

  5. Slide 5: Growth supported by strong customer metrics

    Growth supported by strong customer metrics Residential customers (000s) ARPU (RM) Pay-TV NJOI 95.6 96.0 442 94.9 382 94.2 314 264 93.2 132 209 92.3 3,316 3,359 3,402 3,442 3,213 3,276 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 Customers with B.yond STBs (000

  6. Slide 6: Successful Astro B.yond swapout reflected by healthy take-up of value-added products and services

    Successful Astro B.yond swapout reflected by healthy take-up of value-added products and services (000s) (000s) (000s) 65% 64% 64% 61% 60% 58% 532 26 468 414 20 Penetration 1,675 343 1,518 1,611 299 16 1,397 227 13 1,264 11 1,151 8 3QFY134QFY131QFY142QFY143QFY144QFY14 3QFY134QFY131QFY142QFY143QFY144

  7. Slide 7: Our content is growing from strength to strength

    Our content is growing from strength to strength Since FY13, we… 171 …launched 12 new channels …had 15 shows exceeding 1mn viewership, tripling …increased our viewership across all key metrics total channels FY13 record, and… Viewership Share Astro FTA 53% 47% (57%) (43%) 39 7 HD Avg. Daily Viewers

  8. Slide 8: Content highlights in 2014

    Content highlights in 2014 #1 local movie: The Journey Malaysians turned to Astro Home of Sports Awani for MH370 updates Channel share grew 10x 9.5% 8.4% 5.7% 5.3% 0.4% 1 Mar 6 Mar 11 Mar 16 Mar 21 Mar Online traffic spiked to over 22mn UVs Page Views 10 channels to Full-on WC Unique Visitors 22.7 b

  9. Slide 9: The Astro brand is top of mind for Malaysians

    The Astro brand is top of mind for Malaysians Astro’s Brand Health Tracker (2011-2013) 16 14 15  Top mention 9 10 12 amongst Malaysians 8 8 9  Astro continues to 9 7 8 remain the most 6 6 6 salient of all 6 6 5 4 5 5 2 5 4 2 4 4 2 3 3 Wave 2 Wave 3 Wave 4 8 | 4QFY14 results

  10. Slide 10: WLRP – our roadmap to creating better consumption experiences

    WLRP – our roadmap to creating better consumption experiences WATCH LISTEN READ PLAY 9 | 4QFY14 results

  11. Slide 11: Astro Publications goes Digital

    Astro Publications goes Digital  Game-changer – 6 titles now fully digital and interactive, of which 5 made available for free to Astro customers  Potential market reach and readership in the millions  Astro Digital Publications now the largest distributed digital platform in Malaysia 10 | 4QFY14

  12. Slide 12: Home Shopping a new growth driver

    Home Shopping a new growth driver  JV committed to delivering a world-class shopping experience to all Malaysians  New revenue stream  Leverage on Astro’s call centre, channels platform and video production capabilities  Build customer satisfaction and loyalty with special offers and shopping co

  13. Slide 13: Astro employee volunteers have contributed over 79,000 hours through 800 activities

    Astro employee volunteers have contributed over 79,000 hours through 800 activities under Astro’s 4 CSR pillars Lifelong Learning Community Development Sports and Wellness Environment Kampus Astro Bersama Komuniti Astro Hostel Astro Kem BOLA Beautiful Malaysia Longest Sekolah  Construction of three

  14. Slide 14: Strong product, value and service proposition underpins double digit revenue growth

    Strong product, value and service proposition underpins double digit revenue growth (2) Total revenue (RM mn) YoY growth 1,260 12% 1,188 1,217 74 92% 1,132 1,126 44 69 1,078 68 15% 32 41 66 64 36 59 49 86 16% 55 87 88 81 64 68 Other Radio TV adex TV subscription 991 996 1,032 9% 919 960 972 3QFY13 4

  15. Slide 15: Adex continues to outperform the industry

    Adex continues to outperform the industry (2) Adex revenue (RM mn) YoY growth Share of Radex Radio listeners (mn) TV Radio Others (3) 155 155 157 15% 54% 12.3 12.2 2 3 3 1% 143 3 53% 126 3 115 66 64 68 14% 59 2 FY13 FY14 FY13 FY14 55 49 Astro TV Share of TV adex viewership share 31% 47% 81 87 88 86

  16. Slide 16: Cost management focus drives our growth trajectory; STB reinvestment strategy completed

    Cost management focus drives our growth trajectory; STB reinvestment strategy completed Total operating expenditure (RM mn) Continuous investment in content offerings 31% 34% 32% 33% 32% 33% to provide an enriching experience for our Content cost as % of TV revenue customers whilst managing content

  17. Slide 17: Disciplined capex to drive growth; peaks in FY15

    Disciplined capex to drive growth; peaks in FY15 Cash capex (RM mn) Capitalised capex (RM mn) as % of 7.4% 8.5% as % of 15% 15% revenue revenue 409 56 314 56 128 64 703 85 129 619 109 96 FY13 FY14 FY13 FY14 Revenue growth Expansion  Capitalised capex peaks in FY14 as we completed the Astro Operatio

  18. Slide 18: Consistently strong FCF continues to exceed PAT…

    Consistently strong FCF continues to exceed PAT… Free cash flow (RM mn) as % of PAT 149% 177% 660 538 1,451 1,165 791 627 Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing (2) operations investing (2) FY13 FY14 …enabling FY12significant flexibilityFY13 on cap

  19. Slide 19: Quarterly dividend announcement

    Quarterly dividend announcement  Leveraging on invested capital, AMH will continue to be highly cash generative enabling the adoption of a progressive dividend policy  In respect of FY14, dividends of 6.0 sen per share have so far been declared and paid over first three financial quarters  Board

  20. Slide 20: Appendix

    Appendix

  21. Slide 21: PAT reconciliation

    PAT reconciliation (RM mn) FY13 FY14 EBITDA 1,388 1,616 Margin % 32.5% 33.7% Depreciation and amortisation (603) (838) Increase in D&A due to depreciation related to increased cumulative STBs/ODUs capitalised EBIT 785 778 (FY14: RM504mn, FY13: RM306mn) Finance income 62 55 Finance cost (278) (268) S

  22. Slide 22: Group balance sheet overview

    Group balance sheet overview (RM mn) FY13 FY14 (RM mn) FY13 FY14 Non-current assets 4,130 4,437 Non-current liabilities 4,434 4,740 Property, plant and equipment 1,916 2,157 Payables 706 1,249 Other non-current assets 2,214 2,280 Borrowings 3,564 3,362 Other non-current liabilities 164 129 Current a

  23. Slide 23: Debt profile

    Debt profile Total borrowings (RM mn) Details of borrowings  As at 31 January 2014, outstanding US dollar term loan stood at US$321.75mn. Finance lease RM term loan USD term loan The first principal repayment amounting to USD8.25mn (RM24.9mn) was paid on 9 December 2013 Total borrowings includes US

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