Q104 Operating Result Conference Call 17 May 2004 Participants: - - PowerPoint PPT Presentation

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Q104 Operating Result Conference Call 17 May 2004 Participants: - - PowerPoint PPT Presentation

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Q104 Operating Result Conference Call 17 May 2004 Participants: Mr. Vichai Bencharongkul, Co-CEO Mr. Sigve Brekke, Co-CEO Mr. Grant Ferguson, CFO Mr. Petter-Borre Furberg, DCFO Mr. Premon Pinskul, ACFO Summary Maintained focus in

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SLIDE 1

Q104 Operating Result Conference Call

17 May 2004

Participants:

  • Mr. Vichai Bencharongkul, Co-CEO
  • Mr. Sigve Brekke, Co-CEO
  • Mr. Grant Ferguson, CFO
  • Mr. Petter-Borre Furberg, DCFO
  • Mr. Premon Pinskul, ACFO
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Summary

Maintained focus in providing innovative products target at specific segments as the key to drive revenue growth Revenue growth, driven largely by increasing usage by existing and new customers Modest increase in market share, mainly from growing prepaid customer base Prepaid revenues increasing and postpaid revenues maintained Operating margin improved from revenue growth and controlled costs Discussions on regulatory issues ongoing

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Activities in Q104-Innovative Segmentation

The first micro-refill vouchers in Thailand, “THB 50 card”, was introduced on February 6, 2004. DTAC also entered into a marketing and distribution agreement with Thailand’s largest distributor

  • f

consumer products, Saha Pathanapibul, and fashion and cosmetics group, I.C.C International, to extend its distribution network throughout Thailand. On March 1, 2004 “Maximize”, new postpaid package, was launched to satisfy high-usage customers with value for money service, numerous special privileges for secretarial services, premium customer service, and special discounts at 750 shops nationwide. “Baby SIM” was launched on January 17,

  • 2004. This new SIM card package is targeted

at low volume users that want to stay constantly connected by extending the availability period of refill vouchers.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Customers

Postpaid subscribers continued to increase as a result of an improvement in churn and higher level of new customers, driven by the introduction of “Maximize” in March. Net addition to prepaid customer base continued to increase due to higher new customers sales resulting from the launch of “Baby SIM” and the “THB 50” refill voucher cards.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Market Share Movement

Source: Company’s estimates

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Revenue QoQ Growth

  • 8% increase in airtime revenues from more customers and higher average usage.
  • 21% growth in VAS driven by an increases in SMS and CPA.
  • 9% increase in revenues from IR, largely as a result of higher inbound roaming due to an increase in

visitor arrivals and a higher proportion of visitors using the DTAC network.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Page 7

Service Revenues and Profitability

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Page 8

ARPU

Prepaid ARPU in Q104 increased by 7% QoQ while Postpaid ARPU was stabilize.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Page 9

Capital Expenditure

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Page 10

Q104 Services Revenues

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Service revenues increased 9% QoQ due to an increase in voice revenues as well as revenues from international roaming and value added services.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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Q104 Cost of Services

Cost of services increased by 5% QoQ primarily as a result of an increase in concessionary cost due to an increase in service revenues and no inclusion of the access charge rebate.

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Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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Q104 SG&A

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SG&A decreased by 3% QoQ as a result of an improvement in provision for doubtful accounts and decreases in general administrative expenses due to the inclusion of one-time project advisory costs and the provision for loss of investment in WPS (previously operated non-telecom retail stores) in Q403.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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Q104 Operating Results

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EBITDA increased by 10% QoQ largely due to an increase in operating profit from wireless services and a decrease in SG&A and provision for doubtful account.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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YoY Operating Results

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EBITDA increased by 46% YoY largely due to a significant increase in operating profit from wireless service and a decrease in provision for doubtful accounts.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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Page 15

Sources and Uses of Fund (as at 31 March 2004)

* including changes in accounts payable for capital items.

YTD CAPEX was THB 1.1 billion (approx). CAPEX budget in 2004 is THB 6.5 billion.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968
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Financial Profile

  • Weighted average cost of fund as at 31 March 2004 was 4.84% (Q403: 4.99%)

Note : (A) = Amortized repayment (B) = Bullet repayment

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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SLIDE 17

Page 17

Financial Ratios

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7
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Page 18

Disclaimer

Certain forward looking statements may be made in the course of the

  • presentation. These forward- looking statements generally can be

identified by use of statements that include words or phrases such as DTAC or its management “believes,” “expects,” “anticipates,” “intends,” “plans,” “foresees,” or other words or phrases of similar

  • import. Similarly, statements that describe DTAC’s objectives, plans or

goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. The forward-looking statements contained in the slides are not and should not be constructed as representations of the future performance of DTAC and that such statements are an expression of the Company’s reviews based on its current view and certain assumptions including, but not limited to, prevailing economic and market conditions and currently available information.

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7