dtac first quarter 2011 28 Apr 2011 key highlights Operating - PowerPoint PPT Presentation

dtac first quarter 2011 28 Apr 2011

key highlights  Operating free cash flow of THB 6.9 billion  Strong revenue growth of 11.7% YoY  Net adds of 725k Investor Relations: www.dtac.co.th E-mail: ir@dtac.co.th Tel: 662 202 8882

operational highlights

blended MOU (mins / month / sub) subscribers 22.3 -6.1% 21.6 20.9 -1.1% 20.6 20.3 19.7 326 324 311 309 308 306 52 54 725 59 50 57 57 685 631 386 352 296 270 274 257 253 250 249 Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 Net add (in thousands) Accum subs (in millions) incoming outgoing blended ARPU (THB / month / sub) -1.9% -1.4%  Strong net adds driven by E-sarn SIM 278 272 271 267 264 263 56 promotion. 54 56 55 51 55  On an equal-day basis, MOU and 222 218 213 215 208 212 ARPU slightly increased QoQ. Q409 Q110 Q210 Q310 Q410 Q111 incoming outgoing Investor Relations: www.dtac.co.th 5 E-mail: ir@dtac.co.th Tel: 662 202 8882

financial highlights

robust YoY revenue growth quarterly revenue (THB million) service revenue (excl IC) breakdown 16.2% 19.1% +11.7% +3.9% 4.1% 18,933 19,675 4.1% Q111 17,607 1,675 1,138 704 3,578 3,541 3,181 56.6 % 15.0% 20.5 19.4% 12.8% % 5.3% 5.4% 14,422 14,253 13,722 4.1% 4.0% Q410 Q110 56.3% Q409 Q110 Q210 Q310 Q410 Q111 57.3% Service revenue excl IC IC Revenue Handset & Other VAS IR Others Prepaid airtime Postpaid airtime Investor Relations: www.dtac.co.th 7 E-mail: ir@dtac.co.th Tel: 662 202 8882

Tel: 662 202 8882 E-mail: ir@dtac.co.th Investor Relations: www.dtac.co.th 17,607 Total revenue Q110 Higher voice rev revenue growth illustrated Higher VAS rev Higher IDD & Others Higher IC Higher handset and starter kit sale Lower IR 19,675 8 Total revenue Q111

strong growth in non-voice service VAS revenues (THB million) VAS breakdown +33.1% 28% +9.0% 42% 2,331 Q111 25.0% 2,500 2,137 1,751 20.0% 2,000 16.2% 15.0% 30% 12.8% 15.0% 1,500 29% 28% 33% 10.0% 1,000 42% Q410 Q110 5.0% 500 0.0% 30% 38% Q409 Q110 Q210 Q310 Q410 Q111 Edge/GPRS Messaging VAS revenue % to Service rev excl IC Others Investor Relations: www.dtac.co.th 9 E-mail: ir@dtac.co.th Tel: 662 202 8882

sustained improvement in CoS cost of services (THB million) % to service revenue (excl IC) excluding amortization, IC 30.0% +4.1% -1.0% 27.5% 27.3% 27.0% 25.0% 26.4% 26.4% 26.3% 12,000 45.00% 39.3% 38.8% 38.4% 10,000 40.00% 20.0% 8,000 5,599 5,542 35.00% 5,322 7.6% 6.6% 6.7% 6,000 6.4% 6.3% 6.4% 15.0% 30.00% 4,000 6.1% 6.4% 6.4% 5.1% 5.1% 5.9% 25.00% 2,000 10.0% 0 20.00% Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 Total % to Service rev excl IC Network Opex Other cost Regulartory cost Investor Relations: www.dtac.co.th 10 E-mail: ir@dtac.co.th Tel: 662 202 8882

maintaining net IC balance normalized net IC cost (THB million)  net IC balance is expected to decline further. 245 238 142 -82 -145 -184 Q409 Q110 Q210 Q310 Q410 Q111 Investor Relations: www.dtac.co.th 11 E-mail: ir@dtac.co.th Tel: 662 202 8882

sharp decline in SG&A expenses SG&A (THB million) % to normalized revenue excluding amortization -8.8% -13.1% 14.2% 13.9% 10.5% 5000000 0.16 10.2% 10.2% 10.0% 9.9% 4500000 11.6% 0.14 8.2% 4000000 0.12 3500000 2,629 2,503 0.1 3000000 2,284 5.1% 5.0% 4.9% 4.1% 2500000 0.08 3.7% 3.4% 2000000 0.06 4.6% 1500000 4.3% 0.04 3.8% 3.8% 3.7% 1000000 0.02 2.0% 500000 0 0 Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 SG&A % to total revenue Admin excl A&D as % of total revenues Selling and Marketing expenses as % of total revenues Bad debt as % of postpaid revenues Investor Relations: www.dtac.co.th 12 E-mail: ir@dtac.co.th Tel: 662 202 8882

strong EBITDA and net profit growth EBITDA (THB million) net profit (THB million) +19.9% +36.3% +9.1% +13.0% 5,000 7,236 8,000 100.00% 4,500 6,630 4,000 7,000 6,037 3,332 3,500 2,949 6,000 36.6% 34.7% 34.2% 3,000 2,445 5,000 2,500 4,000 2,000 3,000 1,500 2,000 1,000 500 1,000 0 - 10.00% Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 EBITDA EBITDA margin Investor Relations: www.dtac.co.th 13 E-mail: ir@dtac.co.th Tel: 662 202 8882

healthy financial position debt repayment (THB billion) operating FCF (THB billion) 0.3 0.9 1.6 0.6 1.0 2.0 0.7 3.0 none 6.9 6.1 0.7 4.6 5.4 5.0 5.0 3.6 Q111 Q211 Q311 Q411 2012-2015 Q409 Q110 Q210 Q310 Q410 Q111 Interest Bearing Debt Repayment Operating FCF (EBITDA - Capex) Capex Early repayment financial ratios 179.8 163.8 Net debt to  THB 21.4 billion cash on hand EBITDA 95.2 93.1 87.3 84.5 Net debt to 32.9 Equity 26.6 27.2 21.2 17.7 14.8 0.6 FFO to Total Debt (%) 0.2 0.2 0.1 Interest Q409 Q110 Q210* Q310* Q410* Q111* Coverage Ratio * Net cash 14

regulatory

• In the process of proposing 44 candidates to the NBTC Senate for selection. • According to the law, the Senate has 60 days to selection select 11 NBTC members. • MICT appointed a committee to negotiate with concession private operators to obtain compensation. • No conclusion has been reached as dtac has not amendment caused any damage. • dtac filed a plaint with the Admin Court to review plaint on the legality of the agreement between CAT and True-CAT deal True Group. Investor Relations: www.dtac.co.th 16 E-mail: ir@dtac.co.th Tel: 662 202 8882

3G 850 MHz

Phase I: 400 3G sites in BKK area  Initial investment of THB 350 million.  Additional investment of THB 850 million upon support from authorities.  3G service launch by Q311. Investor Relations: www.dtac.co.th 18 E-mail: ir@dtac.co.th Tel: 662 202 8882

outlook 2011

Approx. THB 18.0 billion Free cash flow  CAPEX at THB 6 - 7 billion Revenue growth High single digit 4 – 5 million net adds for the industry. Net adds  Maintain sub market share, but  Quality of sub is more important. Investor Relations: www.dtac.co.th 20 E-mail: ir@dtac.co.th Tel: 662 202 8882

appendix

postpaid net adds (’ 000 subs) MOU (mins/month/sub) ARPU (bt/month/sub) -2.1% +3.2% +0.1% -0.9% 18 14 14 6 680 682 683 666 662 664 1 514 512 509 502 498 484 122 125 126 105 109 109 106 106 126 131 101 129 557 553 559 558 557 557 408 396 383 386 377 369 -41 Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 incoming outgoing incoming outgoing Investor Relations: www.dtac.co.th 22 E-mail: ir@dtac.co.th Tel: 662 202 8882

prepaid net adds (’ 000 subs) MOU (mins/month/sub) ARPU (bt/month/sub) -6.6% -1.2% -0.7% -2.0% 707 671 630 304 300 286 287 286 284 46 47 44 49 229 51 48 224 222 220 216 213 426 48 46 48 47 45 338 47 290 259 253 242 238 236 236 181 178 175 173 171 166 Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 Q409 Q110 Q210 Q310 Q410 Q111 outgoing incoming outgoing incoming Investor Relations: www.dtac.co.th 23 E-mail: ir@dtac.co.th Tel: 662 202 8882

registered vs active subs (in million) 24.7 24.0 23.3 23.0 22.6 22.2 21.8 21.5 21.1 20.9 22.3 21.6 20.9 20.6 20.3 19.7 19.2 19.3 18.9 18.7 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 registered subs active subs Investor Relations: www.dtac.co.th 24 E-mail: ir@dtac.co.th Tel: 662 202 8882