9M 2008 Results Dumrong Kasemset, Ph.D. Executive Chairman THAICOM PLC. November 12, 2008.
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Transcript of 9M 2008 Results Dumrong Kasemset, Ph.D. Executive Chairman THAICOM PLC. November 12, 2008.
2
Disclaimer
This document contains certain forward-looking statements. They refer to future events and to the future financial performance of the Companies. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe” or “continue”. Although the Companies believe that the expectations reflected in such forward-looking statements are reasonable at this time, it is not intend to give assurance that such expectations will prove to be correct. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
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Agenda
1. Group Financial Highlights
2. Business and Financial Review
– Thaicom
– CamShin
– Laos Telecommunications
– Other Associate and Subsidiary Businesses
5
Financial Headlines (9M/08 vs 9M/07)
Increase in sales and service income +10% (or +482 M฿) in Q3/08, driven by growth of IPSTAR
Increase in EBITDA EBITDA growth of Baht 228 million from robust increase in sales and service income
Sharp drop in net income: - 3,313 M฿ Gain on sales of investment of 5,127 M
฿ in Q3/07
In M฿
5,291
4,809
9M07 9M08
3,197
-116
9M07 9M08
1,748
1,976
9M07 9M08
+228 M฿
+482 M฿
-3,313 M฿
6
Revenue Contribution by Business Segment
Sales and service revenues (in M฿)
9M07 9M08 % YoY
Conventional Satellite Services 1,680 1,713 2.0%
IPSTAR Services 1,177 1,826 55.1%
Telephone Services 1,809 1,363 -24.7%
Internet and Media Services 143 389 172.0%
Total 4,809 5,291 10.0%
4,809 +33
+649
-446
+246 5,291
9M07 Conventional IPSTAR Telephone Internet &Media
9M08
Caused by the new investment proportion (51%) after the sale of
49% shares in SHEN to AMH in Q3/07
7
Operating cash Contribution (EBITDA) by Business Segment
EBITDA Margin
60%
48%
36%
60%
48%
8%
37%
-17%
50%
14%
Conventional IPSTAR Telephone Internet andMedia
Company
9M07 9M08
Unit : Million Baht 9M07 9M08 % YoY
EBITDAConventional 1,009 1,025 1.6%IPSTAR (203) 264 n.m.Telephone 870 657 -24.5%Internet and Media 71 30 -58.0%
Total EBITDA 1,748 1,976 13.1%
8
Financial Position – 9M08
Liabilities, 13,417 ,
22%
Equity, 16,684 ,
28%
Assets* , 27,672 ,
46%
Cash, 2,429 , 4%
Q308 Ending Cash decreased from annual corporate income tax.
Q308
MBt
Q407
MBt
* Exclude Cash
Equity, 16,672 ,
29%
Liabilities, 11,859 ,
21%Assets*, 26,889 ,
47%
Cash, 1,642 , 3%
10
Conventional Satellite Business
• Conventional contract backlog was 251.9 MUSD• Thaicom secured 11 new transponder leasing contracts
and video broadcasting service
contracts• Indochina and South Asia
market had steady growth in video
service• New Broadcasting Law and
strong growth in content aggregator
and content owner with result in
more demand of C and Ku
transponder in Thailand• Low-cost IRD have stimulated
the demand for bandwidth• Increase in System Integration sale
70%
85%
67%
100%
0%
67%
0 0.2 0.4 0.6 0.8 1 1.2
Thaicom 1
Thaicom 2
Thaicom 5C KU
Conventional Satellite Transponder Breakdown
Conventional Satellite Utilization
Telecom, 31.4%
Internet, 4.4%
Broadcast, 64.2%
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Thailand
•Completed delivery of 15,500 User Terminals to TOT in the first 9 months of 2008
•Implementing joint marketing campaign with TOT in Q4’08 to accelerate User Terminal deployment.
India•The two Gateways are in construction phase at BSNL's sites with goal to complete by year's end.
China•Pursuing provincial telco model and, in the initial phase, focusing on Sichuan and Hainan provinces deployments for broadband, rural telephone and mobile backhaul services.
IPSTAR Business
IPSTAR Business
Australia• Five IPSTAR Service Providers ( APN, Broadband Wireless Skymesh,
Westnet, Westwic) were successfully granted the Australian Broad band Guarantee (ABG) from the Australian government, a subsidy
scheme to deploy broadband to unserved and underserved markets.
• Average deployment rate for first 3 quarters of 2008: 2,100 subscribers/month
New Zealand• Launched the new retail package named “Rocket Broadband”
starting at NZD 49.95/month (Bht 1,000) in June 08 and observed a 2.5 times jump in subscriber uptake
• Average deployment rate for Rocket Broadband: 500 subscribers/month
12
IPSTAR BusinessThe Philippines• Gateway construction completed and officially inaugurated the IPSTAR
service on 6 Nov 08 in Manila.• Launched the “IPSTAR BigSky” retail package starting at 2,300 pesos/month
(Bht 1,650) targeting consumers and SMEs nationwide.
Malaysia• Partnering with Time DotCom for gateway services, landing and as a non-
exclusive Service Provider. • Deploying community broadband and voice services to rubber plantations
through the Malaysian government’s FELDA* and FELCRA* agencies.• Launching IPSTAR retail packages through Service Providers starting at 268
ringgits/month (Bht 2,600) targeting SMEs nationwide.
Indonesia• Gateway construction in process and commercial services planned for Dec
08
13* FELDA: Federal Land Development Authority. FELCA: Federal Land Consolidation & Rehabilitation
Authority
IPSTAR BusinessKorea• Gateway construction completed and have been in commercial
operations since Sep 08• Signed 30 Mbps bandwidth contract for DVB broadcast services• Due to its single beam nationwide coverage, IPSTAR will focus on
DVB broadcasting, HD cinema content distribution, SNG and back-up services
14
15
Average Accumulative UTs vs. Monthly BW ARPU
150,978147,284
136,400
121,686
106,092
94,67991,350
85,069
76,51370,015
63,202
52,524
42,70740,005
14.2514.9114.6114.85
15.67
16.8716.3415.68
17.3717.8517.4218.38
21.3621.04
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08
Avg. Accumulative UTs
$0
$5
$10
$15
$20
$25
$30
BW ARPU (USD/ UT/ Month)
Avg. Accumulative UTs
BW ARPU (USD/ UT)
16
IPA Financial Results – 9M/08
Operating Results
Financial Position
EBIT = Sales and service revenue – Cost – SGA – Directors’ remuneration
Thousand AUD
Assets, 26,953 ,
50%
Liabilities, 12,854 ,
24%
Equity, 14,099 ,
26%
Summary income statement in Thousand AUD
9M07 9M08 %YoY
Sales & Service Revenues 20,246 28,209 39.3%
Gross Profit 3,991 10,976 175.0%
EBIT 2,032 7,663 277.1%
D&A 509 895 75.8%
EBITDA 2,541 8,558 236.8%
Net Profit 2,969 6,701 125.6%
Margin (%)
20%
10%13%
15%
39%
27%30%
24%
GROSS EBIT EBITDA NET PROFIT
9M07 9M08
'
190423/ /17
IPSTAR Commercial Rollout:10 Countries Commercial Deployed using 13 Gateways
= Gateways Completed
= Gateways in Progress
= Gateways Planned
In Service
Australia (2) Vietnam
Cambodia Myanmar
China (3) New Zealand
Thailand Korea
Malaysia The Philippines
By 2008
India (2) Indonesia
By 2009
Taiwan Japan
17
21
Telephone Business in Cambodia
•As end of Q3/08, CamShin had 719,573 telephone subscribers, an increased of 62% as compared with Q3/07.
•The total revenue in Q3/08 increased 55% as compared with Q3/07, due to the growth of telephone subscribers especially prepaid mobile phone subscribers.
•330 BTS of Phase 9 had been completed, resulting the total of 707 sites on service.
Market and Subscriber Growth - CamShin
Camshin mobile subscribers (+63% YoY)
Camshin fixed-line subscribers (-7.7% YoY)
63% market growth YoY
5,050 5,0994,661
0
2,000
4,000
6,000
8,000
Q307 Q208 Q308
439,849
568,636714,912
0
300,000
600,000
900,000
Q307 Q208 Q3081568K
2173K
2556K
Q307 Q208 Q308
23
CamShin Financial Results – 9M/08Average Exchange Rate 9M08: USD1 = 32.8799
BahtOperating Results
Financial Position
EBIT = Sales and service revenue – Concession fee – Cost – SGA – Directors’ remuneration
n.m. = Not meaningful
Margin (%)
33%
15%
30%
9%
34%
22%
35%
17%
GROSS EBIT EBITDA NET PROFIT
9M07 9M08
Thousand $
Assets, 140,708 ,
50%
Liabilities, 95,863 ,
34%
Equity, 44,845 ,
16%
Summary income statement in Thousand USD
9M07 9M08 %YoY
Sales & Service Revenues 34,323 52,478 52.9%
Gross Profit 11,390 18,092 58.8%
EBIT 5,242 11,603 121.3%
D&A 5,171 6,846 32.4%
EBITDA 10,413 18,449 77.2%
Net Profit 2,945 8,885 201.7%
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Telephone Business in Lao PDR
• At the end of Q3/08, LTC had 894,259 subscribers, an increase of 22%, as compared with Q3/07.
• Commercially launch the first 3G Mobile system on October 17, 2008 on the first phase covering Vientiane and will expand to provincial areas in 2009.
• Completed Phase 14 GSM expansion 229 BTS, 579 TRX and 65 new sites. The remaining of 42 new sites expects to be completed by December, 2008 and 30 new sites in very remote area expects to be completed by February, 2009.
• Plan to expand internet bandwidth with VDC, Vietnam from 34 Mb to STM-1(155 Mb).
• EDGE and GPRS are on service nationwide.
Market and Subscriber Growth - LTC
31% market growth YoY
LTC fixed-line subscribers (+5% YoY)
LTC mobile subscribers (+24% YoY)
648,469768,097 806,348
0
300,000
600,000
900,000
1,200,000
Q307 Q208 Q308
83,668 87,274 87,911
0
30,000
60,000
90,000
120,000
Q307 Q208 Q308
1057K
1288K
1389K
Q307 Q208 Q308
26
LTC Financial Results – 9M/08
Operating Results
Financial Position
EBIT = Sales and service revenue – Concession fee – Cost – SGA – Directors’ remuneration
n.m. = Not meaningful
Margin (% )68%
52%
75%
42%
67%
54%
22%
76%
GROSS EBIT EBITDA NET PROFIT
9M07 9M08
Summary income statement in Thousand USD
9M07 9M08 %YoY
Sales & Service Revenues 53,050 64,881 22.3%
Gross Profit 35,853 43,738 22.0%
EBIT 27,568 34,881 26.5%
D&A 11,996 14,449 20.5%
EBITDA 39,564 49,330 24.7%
Net Profit 22,088 29,046 31.5%K US$
Assets, 169,847,
50%
Liabilities, 31,668,
9%
Equity, 138,180,
41%
27
Internet and Media Business
•As at the end of Q3/08, accumulated DTV sales volume was 295,842 sets, up 71,079 sets from the end of Q2/08.
•Revenue from the Internet access and media business in Q3/08 was Baht 150 million, an increase of Baht 88 million or 141.9% from Baht 62 million in Q3/07.
•CSL expanded customer base in business or corporate segments which have lots of potential to continuously grow in the industry.
28
DTV Service Financial Results – 9M/08
Operating Results
Financial Position
EBIT = Sales and service revenue – Cost – SGA – Directors’ remuneration
Summary income statement in Million Baht
9M07 9M08 %YoY
Sales & Service Revenues 168 333 97.8%
Gross Profit 12 53 339.7%
EBIT (7) 12 276.0%
D&A 5 8 53.8%
EBITDA (2) 20 1317.8%
Net Profit 40 87 118.7%
Margin (%)
7%
24%
16%
26%
-4% -1%
4%6%
GROSS EBIT EBITDA NET PROFIT
9M07 9M08
'
Assets, 896 , 50%
Liabilities, 494 , 28%
Equity, 402 , 22%
M฿