4Q18 Opportunity Day 12th February 2019 Agen Agenda da Financial - - PowerPoint PPT Presentation

4Q18 Opportunity Day

12th February 2019

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Comm Commer ercia cial l Highligh Highlights ts Moving Forward Financial Highlights Agen Agenda da

Financial Highlights

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20 2018 18 : : Key F ey Finan inancial cial Hi High ghli ligh ghts ts

Consolidated Key Financial Highlights

• Revenue from Sales and Services 6,008 MB ; Decrease 10% YoY, mainly

due to the decrease of price per unit following industry trend and impact from clients churn in 2017

• Gross Profit 1,789 MB ; with 30% margin, improved from the decrease of

depreciation

• Normalized Profit 140 MB ; Increase 608%, despite revenue decreased,

mainly due to the cost reduction

• Net Profit 230 MB ; Improved from the sales of CSL, decrease of

depreciation & amortization and SG&A, offsetting with impairment loss

(+) (+) Profit

• fit incr

increa ease sed, d, de desp spite ite the the revenu enue e dr drops,

• ps, fr

from

• m the

the cost cost red educ uction tion (-) ) Reven enue ue dr drop

• ppe

ped d fr from the

• m the

de decr crea ease se of

• f price

price pe per r un unit it an and d im impac pact t of

• f c

cli lients ents chur hurn n in in 201 2017

Sales and Services

Net Profit Gross Profit

0.06 0.09 0.23 Unit: Baht million

6,689 6,008 2017 2018 1,398 1,789 2017 2018

Gross Profit Margin

21% 30% 20 140 2017 2018

Normalized Profit*

*Profit (loss) attributable to owner of the Company – Profit from the sale of CSL’s share + Net impairment loss

(2,650) 230 2017 2018

EPS (Baht/share)

• 2.42

0.21

Net Profit

Increased 608% YoY Decreased 10% YoY

2017 2018

Conventional Broadband

61% 58% 39% 42% 5

Broadband Conventional

20 2018 18 : S : Satellit tellite e pe perf rfor

• rma

manc nce

2018 Satellite revenue was 5,850 MB.

Decreased 10% YoY,

caused by the a drop of market price and major clients churned during 2017

TV

Satellite Revenue Committed BW Utilization

TV

Conventional Broadband

Unit: Baht million

40%

EBITDA Margin Satellite Revenue

37%

2017 2018

59% 59% 30% 26%

Broadband: Utilization increased

from new contracts, the Philippines, Indonesia and Thai government project

Broadcast: New contracts from

regional balancing the churn of local ones

6,475 5,850

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Fin Finan ancia cial l po position sition as as of

• f 31

31 Dec 2 Dec 201 018

• 1. Interest-bearing Debt / Equity
• 2. Excludes Cash and Current Investment
• 3. Excludes Interest-Bearing Debt
• 4. Includes Cash and Current Investment

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Consolidated CF 2017 2018 CF from Operating 2,980 1,886 CF from Investing (46) 1,207 CF from Financing (3,327) (2,223) Ending Cash 1,961 2,830 Total Cash On Hand 4 5,368 7,057

Str Strong ca cash sh position sition

2018 2018

Cash 2,830 Current Investment 4,228 Interest Bearing Debt 7,023 Liabilities 3 2,042 Assets 2 18,630 Unit: Baht million

D/ D/E E Ra Ratio tio at t 0.53 .53x

up from 0.49x as at the end of 2017

Equity 13,137

Moving Forward

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Key F ey Frame amewor

• rk

k 2019 2019

Satellite Business

Partnership Model

 Selling existing capacity partnership model  Increase utilization of the existing satellites  Thailand’s PPP process (Public Private Partnership) THCOM is open to join with strategic partnership in Thailand for this scheme  International consortium for HTS

Adjacent

Professional Services

 Bangladesh satellite program  China’s TCSTAR-1 program

NAVA

 Expand in Gulf of Thailand  Expand to South China sea Australia  End to End Solutions and managed services for NBN  Maritime and Movie Solution services

New Business

 Capture government projects to serve Thailand 4.0  Identify in 2019 the prototyping of potential business among AI, FINTECH, Block chain, Drone and Robotic

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Remarks: PPP = Thai Government's Public Private Partnership (PPP) scheme HTS = High Throughput Satellite, VHTS = Very High Throughput Satellite, LEO = Low Earth Orbit, EOL = End of Life

2019 2020 2021 2022 2023

Operate under Thai Regulation

 Life extension for TC4 & 5  PPP for satellites under concession (TC4 & 5 & 6) with competitive advantage:  27 years experience of satellite service provider.  Effective cost structure management  Strategic Partner  Operate TC7 & 8 under license scheme

Sa Satell tellite Bus ite Busines iness s Roa

• adma

dmap

TC5 @78.5E

Under Concession until 2021 / EOL until 2020

TC4 @119.5E

Under Concession until 2021 / EOL until 2022

TC6 @78.5E

Under Concession until 2021 / EOL until 2032

TC7 @120E

Under License until 2032 / EOL until 2032

TC8 @78.5E

Under License until 2032 / EOL until 2032

Explore partnerships

 Consortium Based Asian HTS @another orbital slot  Explore Resell Model ; Rent/Rev share Model

Explore Global GEO & LEO Satellite Partnership

 Explore Global VHTS/HTS/LEO Resell; Rent/Rev share Model

Commercial Highlights

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Commer Commercial H cial Highlights ighlights

• Thailand’s TRUE VISIONS: signed a long-term contract on TC8 to strengthen broadcast services in Thailand
• Myanmar’s Canal Plus: signed contract to extend Myanmar’s DTH platform until Aug 2021
• Acquired TelOne, new African telecom customer in Zimbabwe to provide rural broadband services in Africa
• Signed agreement with UAE’s Mediavision for video platform on TC6 over Sub-Saharan Africa

Broadcast Services

• Philippines’ We are IT Philippines (WIT), signed bulk bandwidth agreement for the whole TC4 capacity
• Signed bandwidth agreement and hardware contracts for Thailand’s USO project
• THAICOM offered 1,600 Digital Life set top boxes, to support distance learning in a smart classroom model

in accordance with government’s Thailand 4.0 policy

• Japan’s KDDI, signed amendment contract for additional bandwidth on TC4
• Provide mobility services for Australia’s Spirit of Tasmania cruise ships

Broadband Services Telecom Services

• LTC entered into Sale and Purchase Agreement to acquire 500,000 shares or 100% of Vimpelcom Company

Limited, one of Lao’s mobile operator under the brand “BEELINE”, from the government of Lao PDR.

• This acquisition will significantly enhance LTC network efficiency and expand its target market, especially

young generations.

Appendix

Sa Satellit tellite e Asse Assets ts Imp Impair airme ment nt

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Depreciation of satellite assets will decrease around 116 MB per annum

Impairment of Assets

Non-cash item and does not affect the cash management

2018 Impairment on Thaicom 7 and Thaicom 8 is caused by the market price drops mainly due to a change of customer behavior 2017 impairment of Thaicom 4, Thaicom 6 and a subsidiary is caused by market price drops, churns of major customers, and slow down of business sectors from the recession of Australian’s economic

Depreciation of satellite assets will decrease around 868 MB per annum