1Q02 Financial and Operational Review Conference Call 20.05.02 - - PowerPoint PPT Presentation

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1Q02 Financial and Operational Review Conference Call 20.05.02

Participants:

• Mr. Grant Ferguson - CFO
• Ms. Helene Sandberg - COO
• Mr. Petter-Borre Furberg - ACFO
• Mr. Premon Pinskul - ACFO
• Ms. Kulvadee Kanajanabose - ACFO

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Operational Highlights (1)

Access Charge Dispute

• January- DTAC terminated Access Charge agreement with TOT
• March-

TOT threatened to deny DTAC customer access to its network DTAC instigated Court proceedings against TOT

• April-

TOT withdrew the cut-off threat DTAC agreed to continue paying amounts due under the current system while both parties work to develop a more equitable and transparent basis for charging for interconnection between networks.

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Handset Business Restructuring IMEI Unlock

• March- United Communications (UCOM) announced the consolidation of its and

DTAC’s handset distribution business under a new business unit

• Effective May 20, DTAC’s handset business including all sales, logistics and

distribution functions will be absorbed by United Distribution Business (UD), a new joint venture which will be 25% owned by DTAC and 75% by UCOM

• In addition to the business contributed, DTAC will inject Bt50 mn into UD as paid-up

capital.

• All dealer account management functions will be carried out by DTAC to provide sales

channel management and dealer development

• To reduce barriers to entry, from April 1, DTAC opened its network to allow all

GSM 1800 mobile phones purchased anywhere in the world, and which are not SIM card specific, to use DTAC’s network with the purchase of prepaid or postpaid subscription

Operational Highlights (2)

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Prepaid Starter Kit Postpaid Starter Kit

• To complement the unlocking of the IMEI and promote market development, on

April 05, DTAC introduced a market leading Bt. 300 Dprompt starter kit including both a DTAC SIM-card, Bt. 300 worth of airtime and 100 free SMS

• On May 16, DTAC initiated another market leading development by

introducing new postpaid starter kits Bt. 750 Dmedium and Bt. 1200 Dmax. These come with introductory minutes that allow subscribers to avail of double the amount of bundled airtime that is included in the standard Dmedium and Dmax packages

Operational Highlights (3)

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Subscriber Base

• Total net additional subscribers acquired in 1Q02 was 487,969..
• Total subscribers at 31 March 2002 30 April 2002 was 3,225,567 and 3,513,378

respectively.

• A decline in number of postpaid subscribers in 1Q02 was primarily due to internal

rotation from low ended postpaid subscribers to prepaid service.

• Prepaid customers amounted for 45% and 51% of total subscribers at 31 March and

30 April respectively.

214,897 244,800

• 86,288

171,916

• 3,967
• 56,033

116,539 441,321 343,844 61,800 87,151 574,257 3,513,378 1,709,800 2,011,789 2,300,244 2,737,598 3,225,567 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Q101 Q201 Q301 Q401 Q102 Apr02

• 300,000
• 100,000

100,000 300,000 500,000 700,000 900,000 1,100,000 1,300,000 1,500,000

Net addition - Postpaid Net addition - Prepaid Total Subscriber

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Breakdown of Subscriber Base

• As of March 31, 2001, proportion of DTAC’s subscribers was

7% 45% 15% 16% 17% 31 Mar, 01 Non- Dpackage Dprompt Dmax Dmedium Dlite

Development in the use of service packages 10 20 30 40 50

Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02

(%)

Dlite Dmedium Dmax Dprompt Non-Dpackage

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ARPU

• Postpaid ARPU for 1Q02 increased by 1.8% from Baht 1,010 of 4Q01 to Baht 1,028

while prepaid ARPU for 1Q02 dropped 12.6% to Baht 277 from Baht 317 of 4Q01.

• The reduction in prepaid ARPU in 1Q02 was primarily due to the number of

customers utilizing promotional airtime. 1,121 1,038 1,016 1,010 1,028 464 277 317 381 407 704 814 898 941 1,034 200 400 600 800 1,000 1,200 Q101 Q201 Q301 Q401 Q102 ARPU -Postpaid ARPU -Prepaid Blended

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Network

• In 1Q02, 79 new cell sites were installed
• 2002 Capex is budgeted at approximated Bt. 16 billion, primarily for network

expansion, including capacity, indoor and outdoor coverage, for the GSM network.

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Drop Call & Block Call

Drop Call & Block Call Rate

Drop Call: ‘Drop Call’ is the average percentage of calls dropped during the day from all calls initiated by DTAC’s customers nationwide Block Call: ‘Block Call’ is the average percentage of calls blocked during the day from all calls initiated by DTAC’s customers nationwide

Network performance has stabilized as coverage development plans and

• ptimization work has been completed. The current performance levels are

comparable with international best in class operators.

1 2 3 4 5 6

Apr- 01 May- 01 Jun- 01 Jul- 01 Aug- 01 Sep- 01 Oct- 01 Nov- 01 Dec- 01 Jan- 02 Feb- 02 Mar- 02 Drop Call Block Call

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Financial Highlights - Company Only

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Financial Highlight: Revenue

4,845.04 5,133.00 5,893.04 6157.02 6424.86 2,037.30 1,712.00 1,548.57 2193.43 3105.71 186.75 62 192.8 223.13 240.36

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 Q101 Q201 Q301 Q401 Q102

Other operating income & Other income Handset sales & Retail Service revenue

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Operating Profit and EBITDA

Million Baht

2.90% 2.60% 5.54% 6.07% 7.15% 52% 51% 49% 48% 49% 17.11% 16.79% 17.47% 14.27% 18.30% 27.63% 30.00% 31.87% 28.45% 31.00% 500 1,000 1,500 2,000 2,500 3,000 Q101 Q201 Q301 Q401 Q102 0% 10% 20% 30% 40% 50% 60% Operating Income EBITDA Operating Margin EBITDA Margin Handset Margin Service Margin

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EBITDA Margin

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• Weighted average cost of fund at the end March 2002 was 6.46%

Debt Profile, end of Mar 2002

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Sources and Uses of Fund: Q102

THB Million

3,093 6,874 2,784 12,751 7,230 724 998 8,952 3,799 CAPEX Net financing costs Principal Repayment Total use of funds Cash ending Cash beginning Operating cashflow(Bf.interest) Bond Issue & bank loan Total source of funds Sources of Fund Uses of Fund

Million Baht

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Financial Summary

• Net debt/Equity end of the period

** Net debt/EBITDA (rolling back 3 quarters) *** EBITDA/Interest expense for the period