Shin Corporation Opportunity Day February 25, 2010 1 We are the - - PowerPoint PPT Presentation

Opportunity Day

February 25, 2010

Shin Corporation

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Vision

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We are the leading value creation asset management company in telecom and media

 Regional telecom infrastructure

• perator
• Presence in more than 15 countries in

Asia pacific (include both mobile & satellite business)

 Leading mobile phone operators with total mobile subscribers of 31 millions

• Largest mobile phone network with >

50% revenue market share in Thailand

• No. 1 mobile operator with 55%

market share in Laos

• No. 2 mobile operator with full range
• f fixed phone and internet platform in

Cambodia

 One of the leading satellite operator in Asia pacific that provide diversified services ranging from conventional broadcasting to high speed internet via satellite

“ To continually explore new business opportunities in Telecom & Media ”

SHIN Group today

mobile & satellite services (3 countries) satellite service (12 countries)

Advertising Agency

Group Profile

Regional network provider IPSTAR broadband satellite in 12 countries Thaicom 2 Thaicom satellites with 35 C-band & 16 Ku band transponders Domestic Network Provider Advanced Info Service Largest mobile operator with over 28m subscribers and service revenue market share > 50%

Wireless Communications Media & Advertising

DTV subs of almost 0.6m LTC No.1 operator in Laos with over 1.1m subscribers Mfone No.2 operator in Cambodia with over 0.8m subscribers International Business Teleinfo Media Yellow Pages and Content Aggregator CS Loxinfo Internet Service Provider Matchbox

Satellite &

• Inter. Business

ITV

Key Portfolio

Assets Stake Performance (FY 2009)

42.6% AIS delivered a strong 28% YoY FCF growth for 2009 albeit the service revenue declined 2.3% YoY. However, cost control and lower CAPEX supported AIS to generate strong free cash flow of Bt31bn, a 28% YoY growth from Bt24.2bn in FY08. Data services made a 24% YoY growth driven by the penetration of mobile internet. 41.1% 2009 revenue was Bt7,188m, up by Bt175m YoY mainly from IPSTAR bandwidth usage and telephone service. As a result of revenue growth and 13.5% lower SG&A expenses, EBITDA for 2009 grew 9.6% from 2008. However, a gain on foreign exchange of Bt465m, offset by an increase in finance costs according to a fully amortized borrowing cost associated with IPSTAR and Thaicom 5 loans after the prepayment of these loans, led to 2009 net loss of Bt471m. Subsidiary

• f THCOM

Total revenue in 2009 was Bt2,147m, an increase of 11.4% YoY. The continued growth

• f telephone subscribers in Lao PDR resulted in an increase in LTC’s subscribers from

964,518 in 2008 to 1,357,005 in 2009. For Mfone, it ended its market share at the second largest with services subscriber 860,089 combined mobile and fixed despite the relative high competition. Subsidiary

• f THCOM

CSL reported 2009 consolidated net profit of Bt287m, an increase of 28% YoY due to the growth of the Voice Info Services and Mobile Content business, which resulted from an efficient marketing plan. TMC recognized revenue from publishing the Thailand Yellow Pages and Voice Info Services of Bt666m, a decrease of 11% from 2008, due to a decrease in the sale of advertising space in the 2009 Thailand Yellow Pages books, which was a result of the economic downturn. Subsidiary

• f THCOM

As at the end of 2009, accumulated DTV sales volume was 592,886 sets, up 246,274 sets from the end of 2008. In addition, DTV EASY, the portable satellite receiver was launched in 4Q09.

Financial Performance

• 4Q09 is the first positive growth 4.3%

YoY and 6.2% QoQ.

• The YoY decline started to recover since

3Q09 and showed a clear rebound in 4Q09 mainly from better consumer confidence in economy and seasonality.

• Effective cost control resulted in better

EBITDA margin at 44.8% versus 41.9% in

• 2008. However, EBITDA amount declined

1.2% YoY from lower service revenue

Financial Performance

Mobile internet and content enlarge 24% growth of data revenue. The growth is mainly from Smartphone and social networking.

Revenue THCOM

EBITDA

Revenue Breakdown

Sales and service revenues (in M฿) 2009 2008 %YoY Conventional Satellite Services 2,338 2,302 1.6% IPSTAR Sales 986 1,370

• 28.0%

IPSTAR Services 1,182 911 29.7% Telephone Services 2,147 1,927 11.4% Internet and Media Services 535 503 6.4% Total 7,188 7,013 2.5%

29.7% increase in IPSTAR Services and 11.4% increase in Telephone Services

Growth in IPSTAR Bandwidth revenue attributable to 10.7% increase in EBITDA of Satellite Business

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Low Gearing ratio at D/E of 0.56x

2008

Unit : MBt

* Exclude Cash ** Exclude Interest-Bearing Debt

2009

Unit : MBt

THCOM

Consolidated Net Profit - YoY

5,649

+624 +111

• 36

+147

6,495

4,000 4,500 5,000 5,500 6,000 6,500 7,000

AIS THCOM SHIN, ITV, MB, ITAS PS impairment

+1,230 from absence of signifiacnt impairment loss offset by

• 606 declined

net profit Mainly from FX gain Lower profit of MB Absence of impairment loss in Payment Solution (divest ed in 1Q09)

+ 846 +15%

Btm 7,341 (195) (650) 6,495 2009 contrubution

significant

2009 contribution

2009 Consolidated Net Profit by Segment

Btm % Btm % SHIN (230)

• 4%

(204)

• 4%
• 13%

Wireless (Local) 7,341 113% 6,717 116% 9% THCOM + International business (195)

• 3%

(306)

• 5%

36% ITV (430)

• 7%

(445)

• 8%

3% Others (ITAS+SMB) 11 0% 51 1%

• 78%

Net Income (loss) 6,496 100% 5,649 97% 15%

2009 2008 %YoY

Consolidated Assets & D/E Ratio

• Debt free at SHIN level
• Cash on hand as at December 31, 2009 was Bt3.7bn

84,780 67,267 63,259 61,540 0.69 0.35 0.36 0.36 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 x Baht million Total Assets Debt/Equity ratio

Attractive Dividend Yield

SHIN proposed an interim dividend payment for Jan 1, 2010 – Apr, 8, 2010 operation at Bt1.25/share and a special dividend at a rate of Bt2.00/share, totaling amount of Bt3.25/share. The payment is subject to approval of 2010 Annual General Meeting (AGM) of shareholders

2.00 2.60 2.30 0.30 2.40 2.40

0% 5% 10% 15% 20% 25%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 DPS Dividend per share (LHS) Dividend yield (RHS)

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Price Performance

• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8%

% Change from Closing Price at the end of 2009 SHIN +5% ICT +1% SET -5%

Shin Share Price and Indices

SHIN ICT SET

Net Asset Value

Net Asset Value share price * MKt Cap % owned by value (Local) Bt mn SHIN Btmn AIS 88.25 261,700 42.61% 111,523 THCOM 6.00 6,576 41.14% 2,705 Total Mkt value of AIS, THCOM 114,228 Cash at end of 2009 1,836 Debt at end of 2009

• SHIN's NAV **

116,064 SHIN's NAV per share (THB) 36.26 SHIN share price 29.50 % discount 19%

* Closing price on Feb 22, 2010 ** Excl. Non-listed companies

SHIN Share Price and NAV

10 20 30 40 50 60

2 Jan 02 13 May 02 20 Sep 02 3 Feb 03 18 Jun 03 28 Oct 03 12 Mar 04 29 Jul 04 8 Dec 04 25 Apr 05 6 Sep 05 16 Jan 06 1 Jun 06 12 Oct 06 22 Feb 07 9 Jul 07 15 Nov 07 28 Mar 08 14 Aug 08 23 Dec 08 13 May 09 22 Sep 09 2 Feb 10

SHIN Share Price Performance

Market Price NAV

2010 – The year of expansion in Telecom & Media  Drive AIS to fully utilize business opportunity from the hype of data growth and lay foundation for 3G business  Expand the network and capacity in Cambodia and Laos to capture the rapidly increasing mobile penetration  With rising demand for broadcasting transponder in South Asia and Thailand, opportunity to add more capacity to our satellite business  Lay foundation on Media business in preparation to 3G business

SHIN Group in the future

“Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to

• ur

corporate plans, strategies and beliefs and other statements that are not historical

• facts. These statements can be identified by 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 currently available 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 achievements expressed or implied by such forward-looking statements.”

Disclaimer

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