3Q17 Opportunity Day - Intouch Holdings · related expense • +11% YoY ... Mobile: Improving customer perception driven by better network quality ... powers smarter purchase decisions

3Q17 Opportunity Day

1

14 Nov 2017

Prepared by Group Investor Relations

INTOUCH Investment Structure

1)

1) Listed Company on the Stock Exchange of Thailand

40.45% 41.14% 99.99%

1)1)

1)

1) 1)

Mobile: No.1

revenue and

subscriber market

shares

FBB: Started in

2014, covering 28

provinces

Only satellite

operator in

Thailand

5 satellites both

conventional and

broadband

satellites are in

the orbital slot

TV Home

Shopping: Started

in 2016

No.4 revenue

market share

Started in 2012

Focus in TMT area

11 startups under

current investment

51%

2


Net profit declined 12% YoY following the decrease of AIS and THCOM net profit

Unit : Million Baht

9M16 AIS THCOM INTOUCH & Others 9M17

*Others = ITAS, ITV, VC, and Intouch Media

**Net profit excl. a reversal of provision for interest of unpaid operating fee of ITV

10,146

-776-487

+36 8,919

*

-12% YoY

• -8% YoY

• Higher 4G network investment,

TOT payment, 900MHz license

amortization, and finance cost

• -69% YoY

• Lower sales and services

revenue but higher recognition

cost of TC-8 depreciation and

related expense

• +11% YoY

• Mainly from lower loss

contribution from HIGH

3


Baht million 3Q16 2Q17 3Q17 %YoY %QoQ 9M16 9M17 %YoYFY17

Guidance

Service revenue ex. IC

30,627 32,153 32,455 ▲6.0% ▲0.9% 90,944 95,972 ▲5.5%+4-5%

Increase

Sales revenue 5,064 5,858 5,022 ▼0.8% ▼14% 15,609 17,287 ▲11%

Total revenue ex. Construction

37,096 39,079 38,580 ▲4.0% ▼1.3% 110,830 116,516 ▲5.1%

Cost of service ex. IC 13,537 15,512 15,764 ▲17% ▲1.6% 37,538 46,480 ▲24%

Total SG&A 7,260 6,701 6,599 ▼9.1% ▼1.5% 21,815 18,739 ▼14%

EBITDA 15,257 17,108 17,589 ▲15% ▲2.8% 45,684 52,043 ▲14%

Consolidated EBITDA margin

41.1% 43.8% 45.6% ▲4.5% ▲1.8% 41.2% 44.7% ▲3.5% 42-44%

Sales margin -16% -2.7% -4.9% ▲11% ▼2.2% -4.6% -4.8% ▼0.2%Near zero

margin

Capex 13,263 11,334 10,979 ▼17% ▼3.1% 37,031 33,822 ▼8.7% Bt40-45bn

3Q17 & 9M17 Key Financial Highlights

4


Revenue growth momentum continued

Mobile Business

• Mobile revenue +3.7% YoY in 9M17

• Increased popularity of video streaming

• Expanded postpaid customer base

• Jumped VOU from 3GB/sub/month to

5.9GB/sub/month

Fixed Broadband Business

• FBB revenue +353% YoY in 9M17

• Contributed 2.3% to service revenue

• Subscriber stood at 481K with more

quality sub

• Collecting entrant-fee of Bt650 to target

high-value customers

Digital Service

• More subscription on-top content packages

• Continue educating customers with free-trial

period

• Differentiate brand and increase customer

stickiness

-0.5%-1.0%

2.2%

5.8%

4.0%

6.6%6.0%

28,500

29,000

29,500

30,000

30,500

31,000

31,500

32,000

32,500

33,000

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

FBB revenue

Mobile revenue

Service revenue growth YoY

Unit : Million Baht

YTD service revenue showed a

higher than guidance growth of 5.5%

5

Prepared by Group Investor Relations6

Launched “AIS NEXT G”

• Collaborated with partner to deploy technology

combining LTE and AIS Super WiFi to offer 1Gbps network

speed

• Collaborated with SAMSUNG to embed NEXT G function into

flagship models

Mobile: Improving customer perception driven by better network quality

FMC packages

• Leverage three core businesses to launch

full convergence packages in late Aug 17,

combining fixed broadband, AIS

PLAYBOX, mobile data SIM, and WiFi

• Target to create product differentiation with

better value to customers

FBB: ARPU continued improving from high-speed package adoption

6


Digital service: Expanding footprints in both consumer and enterprise segments

• Continued to stimulate customer awareness

through a one-month free-trial period

• Target to increase brand stickiness, product

differentiation, and monetization

• As at Sep 17, total video content

subscriptions on both mobile and FBB were

around 150k

• EDS with Bandwidth-on-demand

function

• Announced Business Cloud

Vision in Sep 17 with readiness to

collaborate with every business

desiring to have Cloud system

• Tier-4, world-class Data Centers

• Partner with Microsoft Azure to provide

resource management with insightful

analytics

• AIS Unified Communication – a Cloud

phone system

• AIS mForm – a platform to build

internal online forms

• Consultancy, system

installation/relocation/maintenance/

security

Video Content AIS Business Cloud

7


Baht million 3Q16 2Q17 3Q17 %YoY %QoQ 9M16 9M17 %YoY

Sales & Service revenues2,791 2,286 2,312 ▼17% ▲1.1% 8,903 7,329 ▼18%

Satellite and related services 2032 1,555 1,571 ▼23% ▲1.0% 6,557 5,081 ▼23%

Cost of sales and services1,757 1,758 1,699 ▼3.3% ▼3.4% 5,285 5,327 ▲0.8%

EBITDA 1,290 864 896 ▼31% ▲3.7% 4,187 2,837 ▼32%

Net profit attributable to Thaicom 434 216 65 ▼85% ▼70% 1,725 540 ▼69%

EBITDA margin 46.2% 37.8% 38.8% ▼7.4% ▲1.0% 47.0% 38.7% ▼8.3%

3Q17 & 9M17 Key Financial Highlights

8


TC-5 TC-6 TC-8 TC-4TC-7

Conventional satellite is the main revenue contributor

53% 53% 50% 61% 59%

47% 47% 50% 39% 41%

2,0321,857

1,956

1,555 1,571

3Q16 4Q16 1Q17 2Q17 3Q17

Conventional Brandband Satellite revenue

• Conventional: Due to the slowing

down of broadcasting industry in

Thailand

9M17 revenue from satellite business declined by 23% YoY mainly from Broadband

Satellite

• Broadband: Due to the early termination

of NBN contract and the ending of

services contracts with TOT

9


50.5E 78.5E

• Broadband: Focus on retail

market to provide service

through subsidiaries in

Australia and New Zealand

120E119.5E

• Conventional: Successfully

acquire customers in GMS

region and continue to grow in

this area as well as South Asia

markets

• Broadband: Secure bulk

bandwidth sales in Thailand (to

replace TOT) and Philippines

To expand and strengthen its market position in potential areas

• Conventional:

Increase bandwidth

utilization on TC-6

Africa beam

10


0.30.70.7

1.01.00.80.9

1.21.21.0

1.51.61.71.71.71.7

1.91.71.6

2.01.8

Jan-1

6

Feb

-16

Ma

r-1

6

Apr-

16

Ma

y-1

6

Jun-1

6

Jul-1

6

Aug-1

6

Sep-1

6

Oct-

16

No

v-1

6

De

c-1

6

Jan-1

7

Feb

-17

Ma

r-1

7

Apr-

17

Ma

y-1

7

Jun-1

7

Jul-1

7

Aug-1

7

Sep-1

7

Monthly revenue per day (Btmn)

More attraction more sales

Industry Highlights

• 1H17 industry grew by 10% YoY led by High

Shopping

• High shopping ranked number 4 in terms of

revenue market share

9M17 Key Performance Highlights

• Total revenue grew by 106% YoY

• Average sales per day was up by 33% YoY to

Bt1.8mn thanks to 118% growth of order number

• Loss contribution from High Shopping was lower

by 43% YoY

• Enhance sales on cable TV

platform

• 7% of revenue from TV was

from cable TV platform

Strategy

• Leverage social platform

capability

• 7% of total revenue was

from online platform

• High margin fashion

product expansion

Phuket

ChonburiChiangmai

Samut

Prakarn

11


Continue to build new growth via expanding VC portfolio

20.94%

Convertible loan

16.67%

15.40%

17.96%

0.72%

9.99%8.05%

25.00%

16.70%

Convertible note

12

Prepared by Group Investor Relations 13

• Event Pop is Thailand leading end-to-end

event management platform with

comprehensive technology-oriented

services from ticketing and on-site access

control to in-event cashless payment

solutions and CRM suites.

• Event Pop is on a mission to enable the

best live performance experiences to

organizers and event attendees through

the best in-class technology.

• Explore more at www.eventpop.me

https://www.eventpop.me/

Prepared by Group Investor Relations 14

• ShopBack is leading the wave of smarter shopping in Asia Pacific, offering a one-stop lifestyle portal that

powers smarter purchase decisions for consumers.

• Today, ShopBack is the dominant player in Southeast Asia’s ecommerce Cashback market, with

established presence in Singapore, Malaysia, Indonesia, the Philippines, Thailand and Taiwan, closing

1,000 orders per hour.

• Please shop us at www.shopback.com

http://www.shopback.com/

Q&A

15


Appendix

16



Revenues from sales and services

2,823 2,319 2,349 ▼17% ▲1.3% 8,997 7,436 ▼17%

Share of profit of investments in associates

2,585 2,885 2,982 ▲15% ▲3.4% 9,735 8,974 ▼7.8%

Total revenues 5,582 5,530 5,495 ▼1.6% ▼0,6% 19,235 17,073 ▼11%

Cost of sales and service

1,537 1,538 1,500 ▼2.4% ▼2.5% 4,589 4,672 ▲1.8%

SG&A 623 532 571 ▼8.3% ▲7.3% 1,880 1,746 ▼7.1%

EBIT 3,173 3,211 3,193 ▲0.6% ▼0.6% 15,850 9,909 ▼37%

Net profit attributable to Company

2,662 2,871 2,928 ▲10% ▼2.0% 13,837 8,919 ▼36%

INTOUCH 3Q17 & 9M17 Statements of Profit or LossConsolidated Financial Statements

17



Share of net results from investments in subsidiaries

158 77 19 ▼88% ▼75% 642 196 ▼69%

Share of profit of investments in associates

2,585 2,885 2,982 ▲15% ▲3.4% 9,735 8,974 ▼7.8%

Other income 12 10 11 ▼8.3% ▲10% 64 29 ▼55%

Total revenues 2,755 2,972 3,012 ▲9.3% ▲1.3% 10,441 9,199 ▼12%

SG&A 94 102 85 ▼9.6% ▼17% 291 285 ▼2.1%

EBIT 2,661 2,870 2,927 ▲10% ▲2.0% 10,150 8,914 ▼12%

Net profit attributable to Company

2,660 2,869 2,926 ▲10% ▲2.0% 10,148 8,911 ▼12%

INTOUCH 3Q17 & 9M17 Statements of Profit or LossSeparate Financial Statements

18


Baht millionConsolidated Separate

Dec-16 Sep-17 Dec-16 Sep-17Cash & cash equivalents and current investment

9,160 8,376 1,751 2,224

Investments in subsidiaries and associates

- - 26,340 25,823

Investments in associates and joint ventures

19,897 19,565 - -

Property and equipment 9,441 8,957 - -

Intangible assets under operating agreements

9,205 7,692 - -

Other assets 6,904 6,217 98 101Total assets 54,607 50,807 28,189 28,148

Interest-bearing debt 10,168 7,740 - -

Other liabilities 6,764 5,952 136 414Total liabilities 16,932 13,692 136 414Total shareholders’ equity 37,675 37,115 28,053 27,734Net profit attributable to Company 54,607 50,807 28,189 28,148

INTOUCH 9M17 Statements of Financial Position

19


“Some statements made in this presentation are forward-looking statements with the relevant assumptions,which are subject to various risks and uncertainties. These include statements with respect to our corporateplans, strategies and beliefs and other statements that are not historical facts. These statements can be identifiedby 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 currentlyavailable 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 achievementsexpressed or implied by such forward-looking statements. Please note that the company and executives/staff donot control and cannot guarantee the relevance, timeliness, or accuracy of these statements.”

Disclaimer

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Documents

3Q17 Opportunity Day - Intouch Holdings · related expense • +11% YoY ... Mobile: Improving customer perception driven by better network quality ... powers smarter purchase decisions