INTOUCH Holdings Plc Corporate Presentation Corporat… · Unit : Baht per Share THBmn Dividend...

INTOUCH Holdings PlcCorporate Presentation

1

Prepared by Group Investor Relations

We strive to deliver sustainable growth

and long-term value to shareholders by

investing and managing Telecom,

Media and Technology businesses

We actively explore new business

opportunities in Telecom, Media and

Technology

We commit to good corporate

governance practices

We commit to good corporate citizen

that contribute and create shared value

(CSV) for organization , society and all

stakeholders

We uphold corporate core values that

focus on integrity, teamwork,

innovation, people excellence and

social responsibility (ITIES)

We are the leading

and sustainable value

creation asset

management

company in Telecom,

Media and

Technology.

VISION

MISSION

2


INTOUCH Shareholding Structure

Aspen Holdings19.50%

Free float59.50%

1)

1)

1) Listed Company on the Stock Exchange of Thailand

1)

Wireless Device Supply Co., Ltd. 99.99%

1)

Advanced Wireless Network Co., Ltd. 99.99%

DTV Service Co., Ltd. 99.99%

Shenington Investments Pte. Ltd. 51%

CS Loxinfo PLC 42.07%

Lao Telecommunications Co., Ltd 49%

1)

40.45% 41.14% 99.99%

51%

99.99%

Singtel Global Investment21.00%

3


Lower profit contribution mainly from AIS pressured INTOUCH’s financial performance

Unit : Baht Million

1H16 AIS THCOM INTOUCH & Others 1H17

*Others = ITAS, ITV, VC, and Intouch Media

7,484

-1,169-336

+12 5,990

*

-20% YoY

• -16% YoY

• Higher 4G network investment,

TOT payment, 900MHz license

amortization, and bad debt from

pre to post migration

• -63% YoY

• Lower sales and services

revenue but higher recognition

cost of TC-8 depreciation and

related cost

• +5% YoY

• Mainly from lower loss

contribution from HIGH

4


Maintain pass through dividend policy

5

• Maintain pass through dividend policy with dividend

received from associated and subsidiaries after

deducting holding operating expenses

• Announced dividend per share at Bt1.25

• XD on 16 Aug 2017 and payment date on 5 Sep 17

Unit : Baht per Share

2.37 2.23 2.40 2.131.25

2.16 2.232.47

1.61

2013 2014 2015 2016 1H17

Equity Method

1.88 2.16 2.23 2.471.61

2.372.23 2.40 2.13

1.25

2013 2014 2015 2016 2017

Cost Method

Unit : Baht per Share

THBmn

Dividend received from AIS 4,222

Operating expense deduction at

INTOUCH level

214

Dividend payment 4,008

Dividend payout

ratio = 67%

2.86

Dividend payout

ratio = 98%

4.604.634.394.25

4.53 4.464.87

3.74

1.25


Baht million 2Q16 1Q17 2Q17 % YoY % QoQ 1H16 1H17 % YoY FY17 Guidance

Service revenue ex. IC

30,169 31,364 32,153 ▲6.6% ▲2.5% 60,317 63,517 ▲5.3%+4-5%

Increase

Sales revenue 4,882 6,407 5,858 ▲20% ▼8.6% 10,545 12,265 ▲16%

Total revenue ex. Construction

36,482 38,858 39,079 ▲7.1% ▲0.6% 73,735 77,937 ▲5.7%

Cost of service ex. IC 11,309 15,203 15,512 ▲37% ▲2.0% 24,002 30,715 ▲28%

Total SG&A 6,460 5,439 6,701 ▲3.7% ▲23% 14,555 12,140 ▼17%

EBITDA 17,012 17,347 17,108 ▲0.6% ▼1.4% 30,427 34,455 ▲13%

Consolidated EBITDA margin

46.6% 44.6% 43.8% ▼2.8% ▼0.8% 41.3% 44.2% ▲2.9% 42-44%

Sales margin 2.3% -6.7% -2.7% ▼5.0% ▲4.0% 0.9% -4.8% ▼5.7%Near zero

margin

Capex 11,693 11,509 11,334 ▼3.1% ▼1.5% 23,795 22,843 ▼4.0% Bt40-45bn

AIS 2Q17 & 1H17 Key Financial Highlights

6


Expand revenue base to fixed broadband business

Mobile Business

• Mobile revenue +4.6% YoY in 2Q17

• Stronger postpaid segment in terms of both

subscribers and ARPU driven by high value

customer focus

Fixed Broadband Business

• Revenue contribution continually increased to

2.3% in 2Q17

• Subscriber stood at 446K with strong run rate

• Selective expand new coverage and uplift

utilization

Digital Service

• Continue collaboration with both international

and local content partners

• Create special content for exclusivity

• Good respond on premium content subscription

7

-0.5%-1.0%

2.2%

5.8%

4.0%

6.6%

28,500

29,000

29,500

30,000

30,500

31,000

31,500

32,000

32,500

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

FBB revenue

Mobile revenue

Service revenue growth YoY

Unit : Million Baht

Service revenue posted an uptrend

driven by both mobile and fixed

broadband businesses growth


Mobile: Growth driven by postpaid segment

4G handset penetration reached 39%

Data user increased to 4.7GB/Sub/month

ARPU improved to Bt251 from Bt244

Handset subsidies targeted to acquire

and retain mid-to-high-end customerEntertainment

• Unlimited music

• Free 2GB

AIS PLAY

Super Play SIM

Teenagers

ZEED SIM

• 12GB YouTube

• Free JOOX

• 5GB Super WiFi

Prepaid: Focus on segmentation

Roamers

• Popular outbound

roamer SIM

• Bt399 for Asia

• 4GB for 8 days

SIM2FLY

Postpaid: Build 4G adoption

8

• 25% discount

• Bt 1,099 ARPU

• 12-mth contract

• 50% discount

• Bt 399 ARPU

• 12-mth contract


MA

X S

PE

ED

UN

LIM

ITE

DiE

nte

rtain

NO

N-S

TO

P

Mobile price plans: Target better ARPU and build differentiation on postpaid

Monthly

Fee (Bt)

4G/3G

Unlimited

max speed at

Call within

AIS (mins)Enjoy Free

350 512kbps 100

450 1mbps 100

550 4mbps 200

600 6mbps 200

1 month

1 month

12 monthsBuff

et N

ET

• Offer unlimited data usage at different

speed for diverse needs e.g. chat, social

networks, music, HD video streaming

• Encourage customer to move from

prepaid to postpaid subscription with worry-free plan

• Attract new data users and encourage

higher ARPU subscription through premium

VDO contents e.g. AIS Premier and HOOQ

*applications

*

• Serve high-end heavy data users with real unlimited max speed experience

Hig

he

r le

ve

l o

f m

on

thly

co

mm

itm

en

t a

nd

da

ta g

ive

n

9


74,000 115,000

195,000

301,500

373,900

445,900

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Cover 5.2mn home passes

in 28 provinces

AIS Fibre subscribers (sub)

• Continue increasing fixed broadband

subscriber base to 446K in area of 28 key

cities with ARPU increased to Bt600.

• Revenue of fixed broadband accounted for

2.3% of service revenue.

• Achieved utilization rate of 40%, closer to

FY2017 target of 55%.

Segmented & Bundling packages value

added

• HomeBROADBAND - pure broadband

connection

• HomePLUS – broadband + free contents with

AIS PLAYBOX and free HOOQ for 12 months

• HomePREMIUM – broadband + premium

contents + more upload speed

ARPU acceleration – encourage high-end

packages

Encourage brand stickiness – special offer

discount , digital services providing, developed

mobile money applications (my AIS, mPAY),

Aim to be a key player in the next 3 years

FBB: The new revenue stream

10


FBB price plan: Added value through bundling packages

• Special discounts to AIS Customers

and AIS Serenade

• Leverage synergy of the three core

businesses (FMC) to acquire new

subscribers while create stickiness and

differentiation.

Pure

bro

adband

bro

adband +

conte

nts

+ m

obile

Monthly

Fee (Bt)

FBB mbps

(DL/UL)Entertainment

MOBILE

Unlimited

speed at

599 30/10 NA 1Mbps

799 50/20 4Mbps

1,799 100/406Mbps

1,999 200/50

12 months

12 months

3 months

12 months

Bro

adband +

conte

nts

11


Baht million 2Q16 1Q17 2Q17 %YoY %QoQ 1H16 1H17 %YoY

Sales & Service revenues

2,902 2,731 2,286 ▼21% ▼16% 6,112 5,017 ▼18%

Satellite and related services

2,131 1,956 1,555 ▼27% ▼21% 4,525 3,510 ▼22%

Cost of sales and services

1,734 1,870 1,758 ▲1.4% ▼6.0% 3,528 3,628 ▲2.8%

EBITDA 1,394 1,078 864 ▼38% ▼20% 2,897 1,941 ▼33%

Net profit attributable to Thaicom

591 259 216 ▼64% ▼17% 1,292 475 ▼63%

Normalized net profit 637 308 257 ▼60% ▼17% 1,386 564 ▼59%

EBITDA margin 48.0% 39.5% 37.8% ▼10% ▼1.7% 47.4% 38.7% ▼8.7%

THCOM 2Q17&1H17 Key Financial Highlights

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Key Challenges

• NBN early termination

• TOT’s TC-4 contract ended

• TC-9 satellite project delayed

Key Highlights

Conventional Satellites

• TC-6 Kenya’s Intersat signed

• Number of satellite TV channels @78.5E increased

• Broadband Satellite

• Axiata contract signed

• NBN resale subscribers reached 4,500

• Maritime mobility platform

• 2nd screen applications

1H17 Key challenges and Highlights

13


THAICOM Satellite Fleet

THAICOM 1A THAICOM 2 THAICOM 3 THAICOM 4

(IPSTAR)THAICOM 5 THAICOM 6 THAICOM 7 THAICOM 8

Scheme Operating Concession License

Type of Satellite Broadband Conventional Conventional

Fee20.5%

(Sep 2016 = 22.5% onwards)

5.25%

(Jun 2017 = 4% onwards)

Contract Life (Yr) 30 yr (2021) 20 yr (2032)

Useful Life (Yr) 15 14 18 18 18

In-orbitedDe-orbited

De-orbited:

2010

De-orbited:

2010De-orbited:

2006

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50.5E 78.5E

• Broadband: Focus on retail

market to provide service

through subsidiaries in

Australia and New Zealand

120E119.5E

• Conventional: Successfully

acquire customers in GMS

region and continue to grow in

this area as well as South Asia

markets

• Broadband: Secure bulk

bandwidth sales in Thailand (to

replace TOT) and Philippines

To expand and strengthen its market position in potential areas

• Conventional:

Increase bandwidth

utilization on TC-6

Africa beam

15

TC5 (C,Ku)TC6 (C,Ku)TC8 (Ku)

TC4 (Ku)TC7 (C)


0.30.7 0.7

1.0 1.00.8 0.9

1.2 1.21.0

1.5 1.61.7 1.7 1.7 1.7

1.91.7

Jan-1

6

Feb

-16

Ma

r-1

6

Apr-

16

Ma

y-1

6

Jun-1

6

Jul-1

6

Aug-1

6

Sep-1

6

Oct-

16

No

v-1

6

De

c-1

6

Jan-1

7

Feb

-17

Ma

r-1

7

Apr-

17

Ma

y-1

7

Jun-1

7

Monthly revenue per day (Btmn)

Improve awareness into other platforms

16

1H17 Performance

• Successful TV airtime buying strategy (broadcast

program on non HighShopping Channels) starting

in Jan 17 with 25% contribution of total revenue

from TV

• Revenue contribution from non TV platform

increased to 6% from 1% in 2016

• 134% number of order growth in 1H17

• Improve revenue by

increasing eye balls

and awareness: on

other TV Channels, e-

commerce platform,

and social media

• Increase number of

new products and

services

• Develop marketing

strategy and customer

retention program

• Synergy with AIS to

expand customer

base

2017 Strategy


DigioMobile point-

of-sale

(mPOS)

technology in

Thailand

Social NationAdvertising

technology

development2013

2012

2016

2014

2015

Continue support and promote high potential startup companies

2017

2016

OokbeeDigital publication

platform and e-

booking

MeditechAssistive technology

for paralysis patients

Infinity Levels

StudioMobile games

SinozeMobile music game

WongnaiThailand’s No.1 food

and lifestyle review

portal

PlaybasisDigital gamification

platform

GolfdiggGolf course booking

platform and other

golf-related services

2015 2015

17


2017 Guidance

18

Consolidated Financial Statement 2017 Guidance

Mainly Contributed from Share of

Profit of Associates

40.45% of AIS results

Revenue from sales and rendering of

services

Low-teen percentage decline YoY

Standalone Financial Statement 2017 Guidance

General & Administrative Expenses Same level as 2016

Dividend Policy Pass through

Venture Capital (InVent Project) Bt200mn


INTOUCH General InformationGeneral Information of the Company

Company Name Intouch Holdings Public Company

Limited

Symbol INTUCH

Year of Establishment 1983

Website www.intouchcompany.com

Market Capitalization (as of 11 Aug 17) 175,551.51 million Baht

(5,016 million USD at 35Baht/USD)

1-Year Average Trading Volume (as of 11

Aug 17)

547.15 million Baht

(15.6 million USD at 35Baht/USD)

American Depositary Receipt

ADR Ticker Symbol INTHY

Depositary The Bank of New York Mellon

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www.intouchcompany.com

https://www.facebook.com/intouchcompany

http://www.intouchcompany.com/


“Some statements made in this presentation are forward-looking statements with the relevant assumptions,which are subject to various risks and uncertainties. These include statements with respect to our corporateplans, strategies and beliefs and other statements that are not historical facts. These statements can be identifiedby the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”,“continue” “plan” or other similar words.

The statements are based on our management’s assumptions and beliefs in light of the information currentlyavailable to us. These assumptions involve risks and uncertainties which may cause the actual results,performance or achievements to be materially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Please note that the company and executives/staff donot control and cannot guarantee the relevance, timeliness, or accuracy of these statements.”

Disclaimer

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INTOUCH Holdings Plc Corporate Presentation Corporat… · Unit : Baht per Share THBmn Dividend...

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