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Q415 highlights
2
25.3m total subscribers
90% of sub base registered under DTN
400k net adds during Q415
THB7.9b data revenues
48% of service revenues ex. IC
THB6.7b EBITDA
29% EBITDA margin
THB3.9b CAPEX
17% to total revenues
THB0.52 per share dividend
124% payout ratio
operational highlights
4G on 1,800MHz launched
• launched 4G service on 15MHz
bandwidth of 1,800MHz band – with 2,200 sites covering BMA
• 3G coverage reached 94% of population
• injunction on 2.1GHz network rollout lifted
• network perception campaign continued
4
17,555 3G sites
1,056 4G sites
88% pop coverage
24,319 3G sites
6,342 4g sites
94% pop coverage
FY14 FY15
mass campaigns driving acquisition and usage
5
• acquisition campaigns – lucky draw
– free calls or data when activating new SIM
– device campaigns: 4G festival, MNP
• usage stimulating campaigns – lucky draw
– data topping
– combo & social topping
– Jai-dee borrowing service
strong growth in 4G subs and devices
• 2.3 million 4G subscribers at YE15
• 15% penetration of 4G-enabled device
• handset campaigns are important in
expanding 4G subs – 2/3 of devices sold via dtac channels are
4G-enabled
6
0.2 0.5
2.3
Q214 Q314 Q414 Q115 Q215 Q315 Q415
4G subs (in million) most used
applications
dtac remains competitive after auctions
• adequate bandwidth to offer best
mobile Internet services
• without financial burden from the
auctions, dtac is flexible to invest and
compete in the market
• opportunity to strengthen market
position
7
Concession 1/ License 2/ Total
850MHz 1800MHz 2100MHz
2G 10MHz 10MHz
3G 10MHz 10MHz 20MHz
4G 15MHz 5MHz 20MHz
Total 10MHz 25MHz 15MHz 50MHz
1/ concession expires in 2018, excluding 20MHz of unused 1800MHz band. 2/ license expires in 2027.
financial highlights
positive net adds for prepaid and postpaid
7.8 5.0 3.5 3.0 2.6
20.2 23.5 23.5 21.9 22.6
28.0 28.4 26.9 24.9 25.3
Q414 Q115 Q215 Q315 Q415
dtac DTN
222 215 218 220 238
200 195 198 204 220
Q414 Q115 Q215 Q315 Q415
ARPU incl. IC ARPU ex. IC
229 216 206 208 213
186 174 165 165 169
Q414 Q115 Q215 Q315 Q415
MoU incl. IC MoU ex. IC
dtac vs dtn subscribers arpu mou million subs THB/sub/month mins/sub/month
• 90% of subscriber base registered
under DTN
• declining trend was interrupted by
impact from prepaid registration
QoQ YoY
w/ IC
w/o IC
+7.7%
+7.7%
+7.1%
+9.8%
QoQ YoY
w/ IC
w/o IC
+2.5%
+2.6%
-7.1%
-8.9%
9
• ARPU trending up as a result of
impact from prepaid registration
16.9 16.8 16.4 16.4 16.6
68.3 66.2
Q414 Q115 Q215 Q315 Q415 FY14 FY15
voice data others
service revenues ex. ic data revenue
83% 85% 86% 89% 89% 80% 87%
5% 4% 4% 3% 3% 6% 4% 12% 11% 10% 8% 8% 14% 9%
Q414 Q115 Q215 Q315 Q415 FY14 FY15
mobile internet messaging others
data revenue breakdown THB billion % of service revenues ex. IC % of vas revenues
• revenue from data services
contributed nearly half of total
service revenues
• mobile Internet continued to
dominate revenue from data services
YoY
-3.0%
10
• YoY decline of quarterly revenue has
stabilized
• QoQ revenue growth mainly driven
by seasonality
service revenue grew qoq
7.3 7.5 7.6 7.8 7.9 27.8 30.7
43.4% 44.5% 46.3% 47.5% 47.5%
40.7%
46.4%
Q414 Q115 Q215 Q315 Q415 FY14 FY15
QoQ YoY
+1.4% -1.6%
6.6 4.4 3.8
1.9 5.3
15.1 15.4
Q414 Q115 Q215 Q315 Q415 FY14 FY15
% smartphone handset revenue
48.0% 52.4%
57.1% 60.7% 60.9%
Q414 Q115 Q215 Q315 Q415
handset margin
-4.3%
-17.8%
-19.8%
-19.1%
-1.0%
-6.0% -12.7%
Q414 Q115 Q215 Q315 Q415 FY14 FY15
THB billion
• strong QoQ growth of handset sale
from the launch of new iPhone model
• YoY drop of quarterly handset
revenue mainly driven by lower sale
of iPhone
• handset margin significantly
improved from last quarter from
lower level of prepaid handset
subsidy but remained in negative
• marginal increase in smartphone
penetration
11
huge improvement in handset margin
YoY
+1.8%
QoQ YoY
+178% -20.1%
5.8 5.4 5.7 5.4 5.6
24.0 22.2
Q414 Q115 Q215 Q315 Q415 FY14 FY15
regulatory network opex others
cost of services % cost of services THB billion % to service revenues ex. IC
22.5% 18.3% 18.8% 18.7% 17.4%
22.8% 18.3%
7.6% 7.4% 8.8% 7.3% 8.4% 7.0% 8.0%
Q414 Q115 Q215 Q315 Q415 FY14 FY15 regulatory costs network opex
• regulatory cost dropped QoQ
from DR rate adjustment
• higher network OPEX from
expansion of 4G and 3G
networks
* excluding depreciation and amortization, and IC
*
12
decline in regulatory cost
YoY
-7.6%
QoQ YoY
+4.0% -3.1%
% sg&a expenses • higher S&M expenses in
response to intensified
competition
• higher general admin from − implementation of cluster model
and expansion of retail shops
− one-time provision of doubtful
account and write-off of related
equipment
SG&A expenses THB billion
7.7%
6.0% 7.4% 7.9% 8.1% 6.9% 7.3% 7.2%
7.6% 7.7%
10.7% 9.8% 7.2%
8.9%
Q414 Q115 Q215 Q315 Q415 FY14 FY15
S&M gen admin
% to total revenues
* excluding depreciation and amortization
*
4.1 3.3 3.5 3.9 4.5
13.4 15.2
Q414 Q115 Q215 Q315 Q415 FY14 FY15
S&M bad debt gen admin
13
higher SG&A to get revenue growth back
YoY
+14.0%
QoQ YoY
+14.7% +10.1%
ebitda margin up 1.3pp YoY
7.0 7.4 6.7 7.1 6.7
30.9 27.9
Q414 Q115 Q215 Q315 Q415 FY14 FY15
ebitda * ebitda margin THB billion
27.7% 32.3% 30.7%
35.9%
29.0% 34.1% 31.8%
38.8% 44.3%
41.3% 41.8% 37.8%
42.2% 41.3%
Q414 Q115 Q215 Q315 Q415 FY14 FY15
EBITDA margin EBITDA margin ex handset
Q’ly EBITDA margin improved
1.3pp YoY from − lower handset subsidy, and
− lower regulatory cost,
− partly offset by higher SG&A and
network expenses
Q’ly EBITDA margin dropped 6.9pp
QoQ from − higher proportion of handset sale,
− higher SG&A and network expenses,
− partly offset by lower handset
subsidy and regulatory cost
14
YoY
-9.6%
QoQ YoY
-4.8% -3.1%
* change in EBITDA calculation, please see
detail in notes to financial statements.
0.80 0.97 0.58 0.52 0.42
4.53
2.49
10.7 5.9
Q414 Q115 Q215 Q315 Q415 FY14 FY15
net profit dividend THB per share (top)
THB billion (bottom)
THB per share
2.34 0.89 0.80 0.72 0.52
6.91
2.93
Q414 Q115 Q215 Q315 Q415 FY14 FY15
• decline in net profit as a
result of
− lower EBITDA,
− higher D&A charges,
− partly offset by gain in FX
• change in dividend policy
− not less than 50% of dtac’s
net profit, depending on
financial position and future
business plan
− aim to pay semi-annually
15
net profit dropped
YoY
-45.1%
YoY
-57.6%
QoQ YoY
-18.7% -47.2%
QoQ YoY
-27.8% -77.8%
• FY15 operating cash flow
declined from high level of
CAPEX and lower EBITDA
• financial ratios remained at
comfortable level 2.6 1.9 3.6 -0.6 2.8
16.9 7.7 4.4 5.5 3.2 7.6 3.9
14.0 20.2 7.0 7.4 6.7 7.1 6.7
30.9 27.9
Q414 Q115 Q215 Q315 Q415 FY14 FY15
operating CF (ebitda-capex) capex
operating cash flow key financial ratios THB billion
1.9 2.2 2.5 2.6
4.0
0.9 0.8 1.0 0.9 1.4
Q414 Q115 Q215 Q315 Q415
net debt:equity* net debt:ebitda
16
financial position remained strong
* excluding other component of shareholders’ equity.
strategic direction and outlook
key focus areas
18
• 4G on 2.1GHz and 1800MHz
• 3G coverage to reach 95%
• network densification
• defend ‘value for money’ position
• individualized offers / contextual
marketing
• brand refreshment / new brand
platform
• competitive device offerings
• 4G festival / MNP
• Thank You for Being with Us
network expansion
attractive offers
handset campaigns
19
flat / slightly higher
than previous year
service revenues ex. IC growth
same level as previous year
capex (in THB billion)
2016 outlook
EBITDA margin
27% - 31%
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.
disclaimer
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