20 th March 2006 Samart Group SET Opportunity Day.
-
Upload
ireland-wigley -
Category
Documents
-
view
216 -
download
0
Transcript of 20 th March 2006 Samart Group SET Opportunity Day.
20th March 2006
Samart Group
SET Opportunity DaySET Opportunity Day
Key Accomplishments• Business reorganization:
- Injected Samart Comtech into Samart Telcoms• Dividend payment:
- SAMART: Bt. 0.30 for 2005 performance (Bt. 0.10 interim, Bt 0.20 final)- SIM: Bt. 0.47 for 2005 performance (Bt. 0.25 interim, Bt.0.22 final)- SAMTEL: Bt. 0.30 for 2005 performance (Bt. 0.15 interim, Bt. 0.15 final)
• Realigned Business Portfolio:
- Invited Telekom Malaysia as strategic investor in SIM (24.42%)- Off loaded 49% stake in Mobile operations in Cambodia to Telekom Malaysia • Recognition:
-Samart was conferred to use Royal Garuda by Appointment of His Majesty the King of Thailand
100% jump in revenues from International Markets
International, Bt.1220 mill,
9%
Domestic, Bt. 12869 mill,
91%
Revenues from International Markets
International, Bt.3256 mill
18%
Domestic, Bt.15174 mill
82%
2004 2005
Proportion of revenues from international markets to improve significantly in 2006
2005 Consolidated Performance
14657
18858
546 584
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Revenue Net Profit from Operation
- Revenues up 28.6%- Net Profit up 6.9%- Core Profit up 25.3%
Y-O-YProfit details: 2004 2005
Net Profit: 546 584Less:Gain from BLISS 80 0TTM
Net Op. Profit 466 584
EPS from Op. 0.49 0.61EPS incl. Extra 0.58 0.61ROE 24.4% 21.3%ROA 4.54% 4.48%D/E L/T debt 0.85 0.66(Co. only)
2005 Performance
SIM69%
SAMTEL11%
Related+Govt Business
20%
Revenue Contribution
SIM46%
SAMTEL22%
Related+Govt Business
32%
Net Profit Contribution
Consolidated Balance Sheet Dec. 2004 Dec.
2005 Total Current Assets 6,399 6,785Total Current Liabilities 5,217 6,279Net Working Capital 1,182 506
Total Assets 12,029 13,027Total Liabilities 8,163 8,848
Retained Losses (81) 387
Company shareholders equity 2,234 2,735
Total Shareholders Equity 3,865 4,179
Business Focus: Growth Drivers
ICT & Telecom ICT & Telecom businessesbusinesses
HandsetHandsetContentContentMultimediaMultimediaEntertainmentEntertainment
Technology Technology related investmerelated investmentsnts
UtilitiesUtilitiesTransportationTransportation
-Turnkey and serviceTurnkey and service projectsprojects
- Expansion of IPSATRExpansion of IPSATR projects with TOTprojects with TOT and other govt agenciesand other govt agencies
- OutsourcingOutsourcing
- Regional presenceRegional presence (M’sia, B’desh, Indonesia,(M’sia, B’desh, Indonesia, Indo china, South Asia)Indo china, South Asia)
- Exclusive content providerExclusive content provider (new applications)(new applications) 3G/Broadband3G/Broadband
- Opportunities in mediaOpportunities in media entertainment sectorentertainment sector
- Technology related Technology related investmentsinvestments
- Domestic and internationalDomestic and international projects related to utilitiesprojects related to utilities
Business Structure: 2006
51%51% 65%65%
New ProjectNew Project
90%90%
RelatedRelatedBusinessesBusinesses
Call CenterCall Center
100%100% 100%100%
UtilitiesUtilitiesBusinessBusiness
New Inbound Carriers
Phnom Penh – Air Asia,Thai Air Asia, Jet StarSiem Reap – Air Asia,Jet Star,Asiana
Siem Reap – Jet Star
New Over flight routes 2006
Samui Hong Kong
Taiwan KL Singapore
Hong Kong KL Singapore
Africa
34000
36275
37700
32000
33000
34000
35000
36000
37000
38000
2003 2004 2005
-Sustainable growth inSustainable growth in- Inbound trafficInbound traffic- Over flightsOver flights
Cambodia Air Traffic Services
2005 revenues of 2005 revenues of USD 15.5 millUSD 15.5 mill
Growth in regional air traffic to benefit CATS in 2006Growth in regional air traffic to benefit CATS in 2006
Call Center Business
Turnkey
System Outsource
Call Center
OutboundTelesales
Debt Collection
CS Training
Academy
One to
One
• MOTC (คมนาคม)
• MOC (พาณิ�ชย์)
• MOPH (สาธารณิส�ข)
• MOL (แรงงาน)
• MOI (มหาดไทย์)
• MOF (การคลั�ง)
• Bank
• Insurance
• Financial Firm
• Automobile
• PTT
• Microsoft
• HP/IBM
• ICT, Transportation, TAT, MEA, PEA
The only integrated call center in ThailandThe only integrated call center in Thailand
System design, installation ofcall center
facilities for clientsComplete operations of
Call center facilities
Market Size and Opportunity
• Target Outbound call centers for private and government clients
Academy Bt. 50 mill
( 1% )
Outsource, Bt. 1500 mill ( 23% )
Turnkey Bt. 2000 mill ( 31% )Outbound, Bt.
3000 mill ( 45% )
• Strengthen position in Outsourcing market
• Maintain leadership in Turnkey call center sector
Opportunities 2006:
• NBT project: Opportunity to sell Samart DTH
• World cup 2006• Export new product (Samart DTH)
to neighboring countries
DTH Strategy:• Samart DTH is position towards C+
Target• It’s KU band digital quality reception• Able to receive free TV and NBT
DSTV Strategy:• Increase sales from new UBC
package• Introduce new promotion to the
market• Attractive pricing
Type Mkt ShareAntenna 77%C-Band 15%
KU-Band 90%C&KU-Band 60%
Samart Engineering
Samart i-mobile Public Company Limited
Symbol:SIM.BK
Total Shares: 430 mill
Free Float: 20%
2005 Performance
- Revenues up 28.4%- Net Profit down 11.9%- Core Profit up 20.1%
Y-O-Y
Include Bt. 114 mill extra ordinary gain from disposal of BLISS & TTM shares
10101
12,975
427 376
0
2000
4000
6000
8000
10000
12000
14000
Revenue Net Profit
Profit details: 2004 2005
Net Profit: 427 376Less:Gain from BLISS 114 0TTM
Net Op. Profit 313 376
EPS from Op. 0.72 0.87EPS incl. Extra 0.99 0.87ROE 19.6% 17.0%ROA 8.65% 8.20%D/E L/T debt 0.05 0.00(Co. only)
Consolidated Financials
Dec. 2004 Dec. 2005 Total Current Assets 3,803 3,469Total Current Liabilities 2,648 2,362
Total Assets 4,939 4,583Total Liabilities 2,769 2,377
Shareholders equity 2,169 2,205
Handset compositionIncreasing house brands
1,050,000
750,000
500,000
1,300,000
1,170,0006500
5500
75007300
6900
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2001 2002 2003 2004 2005
0
1000
2000
3000
4000
5000
6000
7000
8000
Handset sales & Average price
Actual data
500,000
0
750,000
0
1,050,000
0
1,170,000
375000
1300000
850000
1500000
1000000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2002 2003 2004 2005 2006
Domestic Handset Sales: 2001-2006(f)
Replacement MarketReplacement Market
Ne w
fe a
t ur e
sN
ew f
eatu
res
Pe e
r p
ress
ur e
Pee
r p
ress
ure
Af f
ord
able
Aff
ord
able
3G Handsets3G Handsets
New
Ser
vic e
sN
ew S
erv i
c es
New sub to slow downNew sub to slow downReplacement mkt to grow 12%Replacement mkt to grow 12%
Total h/s mkt = 6.8 millTotal h/s mkt = 6.8 millH/s avg price = Bt.7,250H/s avg price = Bt.7,250
20062006
50,000 h/s50,000 h/s
2006200674 handset models74 handset models- House brand- House brand- Branded- Branded
- 3G h/s sales to take off 2007 onwards- 3G h/s sales to take off 2007 onwards
- New generation handsets to drive growth- New generation handsets to drive growth
Domestic Handset Market Opportunities
Positioning
Positioning
• Target sales growth twice the market growth
• Build strong number 3 position in the local market
with 20% market share
ServicesServices
ProductsProducts
• Expand Service Center throughout nationwide
• Improve quality & reduce fault rate of i-mobile phones
• Available tempo phones and reduce turnaround time
“ Mobile Multimedia Society”
MarketMarket • 3.2 new addition and 3.6 replacement users for 2006
• Innovative, customized and value for money, mid-high end
• 65% of total handsets in 2006 will be house brands
• Launch I-mobile “3G” handsets within 2006
Domestic Handset Sales: Action Plan 2006
International BusinessInternational BusinessInternational BusinessInternational Business
International
Existing marketsExisting markets• Bangladesh
• Cambodia
• Laos
• Malaysia
New potential New potential marketsmarkets• Brunei*
• India*
• Indonesia*
• Pakistan*
• Vietnam
Note: * TMI ’s territories
“Regional Mobile Multimedia”
Telekom Malaysia International
Top Brand
i-mobile Brand
Mobile Content Application
New Alliance & Business Opportunity
• • • •
•
• •
• • •
•
• Markets to be penetrated beginning 2006
Existing Markets
•
BangladeshAktelGSM
CambodiaCASACOM
GSM
Sri LankaMTNGSM
IndonediaXlcom Indo
GSM
MslaysiaCelcom
GSM/3G/CDMA
18% penetration18% penetrationPop:20 millPop:20 mill
International Business
7% penetration7% penetrationPop:12 millPop:12 mill
70% penetration70% penetrationPop: 26 millPop: 26 mill
22% penetration22% penetrationPop: 233 millPop: 233 mill
7% penetration7% penetrationPop:140 millPop:140 millOpportunities from
Low penetration markets
International Business
12000
400000
4800
5100
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
2004 2005
4650
4700
4750
4800
4850
4900
4950
5000
5050
5100
5150
Handset Sales In International Marketsvs. Average price
- Exclusive 3G handset/content provider for Celcom- H/S swap program for 100,000 post paid users- Set up key dealer network for distribution
Sri Lanka1%
Bangladesh3%
Vietnam1%
Indonesia7%
Thailand81%
Malaysia7%
2007 (est.)2007 (est.)
Sales by markets
Content Business: New Opportunities
4
19.8
53.6
87.1
115
133
145
0
20
40
60
80
100
120
140
160
1999 2000 2001 2002 2003 2004 2005
BroadbandBroadbandContentContent
VoiceVoice Non- VoiceNon- Voice MediaMedia
42%42%
46%
75%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2002 2003 2004 2005 (e) 2006 (e)
0
10
20
30
40
50
60
70
80
Non-Voice % GrowthSource: Bualuang SecSource: Bualuang Sec
Growth opportunityGrowth opportunityMillion Minutes 1999-2005Million Minutes 1999-2005
Multimedia BusinessMultimedia BusinessMultimedia BusinessMultimedia Business
2006 Business Outlook
• Download full song service in WMA format with DRM (Protect copyright)
BUG Music
• Provide information e.g. restaurant, travel destination, based on user’s location
City Guide
• Real-time mobile chatting service • “Avatar“ is cute cartoon representing each
user’s character to make chatting more interesting & realistic
Never Land
Avatar
New Products
Coming up next
for Q2/2006
Application Roadmap 2006
Personal EntertainmentPersonal Entertainment
Personal CommunicationPersonal Communication
Personal InformationPersonal Information
Personal ProductivityPersonal Productivity
Personal InvestmentPersonal Investment
Music Caller Media Browser Pocket Music
Never Land
M - Ripper
Smart Live Media
City Guide Personal Smart V3
Financial Smart V4
Catalogs on Mobile
M - Blog
Lady’s Corner II
Bug Music
1900
BugHits
BugHits
1113
1113
Smart TVBroadband
1900
MobileCast
Samart Telcoms Public Company Limited
Symbol:SAMT.BKSymbol:SAMT.BK
Total Shares: 600 millTotal Shares: 600 mill
Free Float: 30%Free Float: 30%
SAMTEL Business StructureNetwork
Services
System Integration
Business ApplicationSolutions & Services
Outsourcing
- Providing network services & applications - VSAT/IP Star - USO - NGN - Business TV/Broadcasting - ISP Business
Providing turnkey IT solutions for private/government sector - MOI - MOJ - MOD - NBIA
Provide specific business process application services for business effectiveness - e payment - e logistics - e Learning
Provide application integration services in specific industries for business efficiency - Government - Telecoms
Growth potential
SAMTELPortfolio
2005 Performance
1443
2137
171248
0
500
1000
1500
2000
2500
Revenue Net Profit
- Revenues up 48%- Net Profit up 45%
profit details: 2004 2005
Net Profit: 171 248Less:Extra gain 0 0
Core Profit 171 248EPS from Op. 0.33 0.47
EPS incl. Extra 0.33 0.47
ROE 11.7% 20.6%
ROA 9.1% 6.1%
D/E L/T debt 0.01 0.16
(Co. only)
Y-O-Y
Consolidated Financials
Dec. 2004 Dec. 2005
Total Current Assets 674 2,294Total Current Liabilities 410 2,024
Total Assets 1,871 4,018Total Liabilities 416 2,818
Shareholders equity 1,455 1,199
Opportunities 2006
2006 Market Environment
• ICT Biz 2006 Growth is 10 % and 2005 is 7% fm 2004 Mobile up 12.5% to 29.3 M Sub, Computer Unit up
12.5% to 1.34 M, Internet User up 10% to 10 M sub • NTC deregulates Lic. ISP, VOIP, Internet GW in 2005 and coming 3G, Wimax, Satellite Services, Unbundle NW Element in 2006 as well as introduction of Interconnecting charge. • High Competitions among Infrastructure Provider
TOT, CAT, True, TT&T, AIS, Dtac Opportunity for shopping best deals.• High Demand on NW Bandwidth, e Security, Web Services and Outsourcing services to support e Government.
NTC related Projects
New Generation Networks
- TOT: Soft switch
IPSATR applications for corporate/govt.
- Distance learning- Satellite Broad band- Business broadcasting- Internet Tambol
Other Projects
- Government Savings Bank- POSNET EDC terminal sales
Opportunities 2006
Existing Cash Cow Business
Rural telephony Concession8,000 numbersBt. 72 mill/mo fixed
Concession Period till9/2006
MaintenanceContract9/2006onwards
+
School net Concession10,000-14,000schoolsBt. 40-50 mill/mo fixed
Concession Period till1/2011
ProvideInternetAccess using IPSATR(voice+data)
Cash Cowof the Group
Rural Telephony ProjectRural Telephony Project
School Net ProjectSchool Net Project
• Over Baht 100 mill/month in fixed revenuesOver Baht 100 mill/month in fixed revenues
HOST A
HOST B
HOST C
POSNET Center
Satellite
Data Network(Lease Line)
Data Network(Lease Line)
PSTN(Dial line)
GPRS Network(Lease Line)
Telephone
SHOP
BANK
SHOP
SHOP SHOP
Customer Network
Satellite, Microwave ,Data Network
Customer Center
EDC Terminal (EFTPOS)
NAC
EDC Terminal (EFTPOS)
EDC Terminal (EFTPOS)
EDC Terminal (EFTPOS)
“EFTPOS/EDC: Electronic File Transfer Point of Sale / Electronic Data Collect”
Service Outsourcing
Terminal Trading
Petronas
Turn Key Solutions
Business Applications: EFTPOS
- Opportunity to- Opportunity to Sell EDC Sell EDC TerminalsTerminals- Expand ServiceExpand Service outsourcingoutsourcing
Customer Base
Suvarnabhumi Airport Ministry of Interior Ministry of Defense Royal Thai Air Force Supreme Command
Headquarters Royal Thai Aid-De-Camp
Department
Ministry of Justice Department of Industrial
Works Thai Meteorological
Department Department of Civil
Aviation Immigration Bureau ITV
System Integration
Government Spending on ITUnit: Million Baht
Government Budget on ICT 2004 2005 2006
Overall Budget 20,605 21,247 32,198
Key Customer (Total) 2,982 4,371 7,991 Ministry of Interior 1,049 1,336 4,101 Ministry of Defense 378 195 246 Ministry of Industry 40 69 116 Ministry of Justice 320 542 922
Ministry of Agriculture & Cooperatives 138 532 260 Ministry of Transport & Communications 278 625 344
NBIA 780 1,072 2,000
Source:1. Ministry of Information and Communication Technology2. National Electronics and Computer Technology Center
3. Bureau of Budget, Thailand
System Integration
System Integration
296
1008
1574
0
200
400
600
800
1000
1200
1400
1600
2003 2004 2005
RevenuesRevenues- Consistent Consistent growth over pastgrowth over past 3 yrs3 yrs
- Beneficiary of Beneficiary of increased increased spending byspending by governmentgovernment agencies agencies
- Increased knowIncreased know how (S/W, H/W,how (S/W, H/W, complex systems)complex systems)
Government Saving Bank Bht 142 mill
POSNET Terminal Sales Bht 139 mill
Projects won in Q1-06