Advanced Info Service Public Co., Ltd. · SET:ADVANC

Advanced Info Service Public — FY2013 Earnings Presentation

16 slides from Advanced Info Service Public's earnings presentation, Feb 11, 2014

  1. Slide 1: Financial Result FY13

    FINANCIAL RESULT FY13 Advanced Info Service Plc. 11 February 2014

  2. Slide 2: Key Highlights

    Key Highlights  At year end 2013, the 3G‐2.1GHz subscribers reached 16mn or 40% of total subscribers and 43% of revenue in 4Q13 following fast network roll‐out covering 80% of population.  In 2013, service revenue increased 3.9%, underpinned by demand for data. During the year, network opex and ma

  3. Slide 3: 2014 guidance

    2014 guidance Service revenue, • increase 6‐8% excluding IC • 75% of total subscribers 3G‐2.1GHz subscribers • 50% using 3G devices • service margin increase 300 bps to 53% EBITDA margin • consolidated margin maintain at 44% • Bt40bn • 95% population coverage with 20,000 3G BTS and CAPEX additional

  4. Slide 4: Target to achieve 95% of population coverage

    Target to achieve 95% of population coverage on 3G‐2.1GHz network FY14 2Q13 3Q13 FY13 target 10% 10% 27% 40% 75% %3G to total subs 7.5k 7.5k 9.5k 9.5m 13.2k 13.2k 20k 3G sites 67 provinces 77 provinces 70% population 77 provinces 80% population 77 provinces 95% population coverage coverage coverage

  5. Slide 5: 4Q13 Key Financial Highlights

    4Q13 Key Financial Highlights Bt million 4Q12 3Q13 4Q13 % yoy % qoq Service revenue ex. IC 28,224 27,964 28,030 ▼0.7% ▲0.2% 2G revenue1) 26,999 19,005 15,117 ▼44% ▼21% 3G revenue2) ‐ 7,650 11,437 NA ▲50% Sales revenue 6,068 3,687 5,947 ▼2% ▲61% Total revenue 38,200 33,477 35,822 ▼6.2% ▲7% EBITDA 15,

  6. Slide 6: FY13 Key Financial Highlights

    FY13 Key Financial Highlights Bt million FY12 FY13 % yoy Service revenue ex. IC 108,336 112,528 ▲3.9% 2G revenue1) 103,557 85,613 ▼17% 3G revenue2) ‐ 21,394 NA Sales revenue 17,695 18,995 ▲7.3% Total revenue 141,549 142,783 ▲0.9% EBITDA 61,436 63,691 ▲3.7% Consolidated EBITDA margin 43.4% 44.6% ▲120

  7. Slide 7: 3G-2.1GHz subs reached 40% of total users

    3G‐2.1GHz subs reached 40% of total users 41mn subscribers  3G‐2.1GHz users reached 16mn, representing 40% of total 41mn users. We 16.4m witnessed the migration of high valued customers toward the new 3G‐2.1GHz. 24.5m postpaid prepaid  Postpaid ARPU and MOU dropped as new ARPU (Bt/sub/month) subsc

  8. Slide 8: FY13 Revenue by segment

    FY13 Revenue by segment (Bt mn) Voice revenue Non‐voice revenue IR revenue -3.5% yoy +24% yoy ‐4% yoy  saturated voice market and weak  rising demand for mobile internet  global price pressure offset by consumer sentiment, particularly supported by higher smart devices higher demand for data roam

  9. Slide 9: Expanding demand for mobile data

    Expanding demand for mobile data Non‐voice revenue  Data users expanded by 1.8mn from last year and reached 14mn mainly driven by social applications and declining price of smart devices.  In 2013, mobile data grew 85% driven by rising smart device adoption which jumped from 17% last year to 27%.

  10. Slide 10: Rising cash opex was partly offset by regulatory fee savings

    Rising cash opex was partly offset by regulatory fee savings Cash OPEX Breakdown of Cash OPEX (Bt bn/ % to total revenue) (Bt bn/ % to total revenue) +21% yoy Network opex* SG&A ex. depreciation +15% yoy +25% yoy 14.4% 17.3% 6.1% 7% 8.3% 10.3% FY12 FY13 FY12 FY13 * Network OPEX = Cost of service, ex

  11. Slide 11: Lower regulatory cost supported EBITDA

    Lower regulatory cost supported EBITDA FY13 – EBITDA (YoY) (Bt mn) ▲3.7% Margin (Bt bn)  Despite higher cost from 3G launch, EBITDA continued to grow in 2013 from Consolidated Service margin* rising data demand and lower regulatory EBITDA margin fee from successful customer response on 3G‐2.1GHz se

  12. Slide 12: Net profit grew 4% yoy despite higher D&A from network expansion

    Net profit grew 4% yoy despite higher D&A from network expansion Net profit (Bt bn) +4% yoy  In 4Q13, net profit increased both YoY and QoQ mainly from regulatory +4.2% yoy fee saving. +5.7% qoq  Despite higher D&A from 3G investment, net profit increased 3.9% YoY in FY13, underpinned by EBITDA gr

  13. Slide 13: FCF positive despite of new capex cycle

    FCF positive despite of new capex cycle Free cash flow (OCF-CAPEX) (Bt bn)  In 2013, AIS generated Bt23bn free - 45% yoy cash flow (FCF), a drop of 45% YoY following rising capex from 3G network roll‐out.  AIS entered to the new capex cycle to build 3G‐2.1GHz network. Hence, capex to sale ratio re

  14. Slide 14: Low gearing enables growth & shareholders return

    Low gearing enables growth & shareholders return Capital structure Interest bearing debt / Finance cost (Bt bn) Net debt/Equity Net debt/EBITDA ROE Interest bearing debt Finance cost +16% yoy +13% qoq -12% yoy -5.2% qoq Net Net Cash Cash  In 4Q13, net debt to EBITDA was 0.14X despite Debt repayment

  15. Slide 15: Impairment loss of Investment in DPC

    Impairment loss of Investment in DPC Basis Assumption • In line with TAS36, an investment in a 1) The DPC continues operation after the expiration of the subsidiary is subject to an impairment test. BTO contract on 1800 MHz for one year followed by the This applies to the separated financial NBTC’s

  16. Slide 16: Disclaimers

    Disclaimers Some statements made in this material are forward‐looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical fact

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