Financial & Operational Performance
For Financial Period Ended 30 June 20014
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
This presentation and the following discussion may contain forward looking
statements by Green Packet Berhad that reflect management’s current
expectation, beliefs, hopes, intentions or strategies regarding the future and
assumptions in light of currently available information. These statements
are subject to a number of risks and uncertainties that could cause actual
results, performance or achievements to differ materially from those
discussed in the forward looking statements. Such statements are not and
should not be construed as a representation as to the future performance or
achievements of Green Packet Berhad and Green Packet Berhad assumes no obligation to update any such statements.
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Broadband Pillar Operational Performance
Agenda
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Q2 ‘14 Financial Performance Review
1
916 1009 1083 1171 1527 1610 1678 1791 1868 1881 1902 1906 1908 1909
93 74
88
356
83 68
113 77 13 21 4 2 1 0
1009 1083 1171
1527 1610 1678 1791 1868 1881 1902 1906 1908 1909 1909
0200400600800
100012001400160018002000
1Q'11(A)
2Q'11(A)
3Q'11(A)
4Q'11(A)
1Q'12(A)
2Q'12(A)
3Q'12(A)
4Q'12(A)
1Q'13(A)
2Q'13(A)
3Q'13(A)
4Q'13(A)
1Q'14(A)
2Q'14(A)
Nu
mb
er o
f si
tes
Existing Sites New Sites Total Sites
Total Sites as of Q2 ‘14
5
1. Cumulative sites as of Jun ‘14 remained as 1,909 sites.
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Total Subscribers as of Q2 ‘14
6
1. Total subscribers (broadband & voice) were 489.6K as of Jun ‘14.
304.8 337.8 355.5 388.6 399.0 410.0 434.9 433.5 449.0 454.7 453.2 449.3 429.3 408.8
14.2
19.1 20.9
26.9 47.1
57.5
70.7 83.6 92.3 98.4 99.9 93.5
87.7 80.8
319.0 357.0
376.3 415.4
446.1 467.4
505.6 517.1 541.2 553.1 553.1 542.8
516.9 489.6
0
100
200
300
400
500
600
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Nu
mb
er o
f Su
bs
(Th
ou
san
ds)
Broadband Net Subs Voice Net Subs Total Subs
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56.2
68.0 71.9
79.7 79.2 80.9 76.1 78.7 80.5
73.6 75.5 75.0 71.4 67.1
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Rev
enu
e (R
M’m
il)
Revenue
-25.8
-19.4 -16.6
-7.6
2.2 5.1 7.9 8.0 9.2 9.5 10.0
13.9
1.2
16.6
-30
-20
-10
0
10
20
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Rev
enu
e (R
M’m
il)
EBITDA
Revenue & EBITDA as of Q2 ‘14
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RM '000
Q2 2014 (YTD) (ACT)
unaudited
% OVER REVENUE
Q2 2014 (YTD)
(6-Month Ops Plan)
% OVER REVENUE
RM %
ACHIEVEMENT
REVENUE 138,514 - 151,421 - (12,907) 91% 2
DIRECT COST 26,070 19% 33,207 22% 7,137 127% 3
OPEX 94,659 68% 111,037 73% 16,378 117% 4
EBITDA 17,785 13% 7,178 5% 10,608 248% 1
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YTD Financial Summary vs. Target
1. EBITDA was higher by approx RM11mil primarily due to lower OPEX (Gen & Admin costs dropped by approx RM18mil as a result of double entry effect on the reversal of prior year (FY 2012) deferred revenue)
2. 9% variance in revenue was largely due to lower connectivity business
3. 27% variance in direct cost was due to lower special projects and one-time bundled sales return
4. OPEX was lower by approx RM16mil mainly due to reversal of prior year deferred revenue
RM '000 Q2
2014 (YTD)
% OVER
REVENUE
Q2 2013 (YTD)
% OVER
REVENUE VARIANCE
%
ACHIEVEMENT
REVENUE 138,514 - 154,018 - (15,504) 90%
DIRECT COST 26,070 19% 28,149 18% 2,079 108%
OPEX 94,659 68% 107,190 70% 12,531 113%
EBITDA 17,785 13% 18,679 12% (894) 95% 1
PBT / (LBT) (102,845) 74% (64,797) 42% (38,048) 63% 2
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YoY Financial Summary (Q2 2014 vs. Q2 2013)
1. EBITDA was slightly lower mainly due to lower revenue but mitigated by lower OPEX (Gen & Admin - as explained in previous slide)
2. LBT was 63% higher mainly due to higher finance costs on LKC notional interest of approx RM15mil and recognition of unrealized FOREX loss of approx RM17mil
RM '000 Q2
2014
% OVER REVENUE
Q1
2014
% OVER REVENUE
VARIANCE
%
ACHIEVEMENT
REVENUE 67,137 - 71,377 - (4,240) 94% 2
DIRECT COST 9,794 15% 16,276 23% 6,481 166% 3
OPEX 40,720 61% 53,939 76% 13,218 132% 4
EBITDA 16,623 25% 1,163 2% 15,460 1430% 1
PBT / (LBT) (65,612) 98% (37,233) 52% (28,380) 57% 5
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QoQ Financial Summary (Q2 vs. Q1 2014)
1. EBITDA was higher by RM15mil primarily due to lower OPEX (Gen & Admin - as explained in slide 7)
2. 6% variance in revenue was largely due to lower connectivity business
3. 66% variance in direct cost was largely due to one-time bundled sales return of approx RM2mil
4. OPEX was 32% lower mainly due to lower Gen & Admin costs by approx RM18mil (as explained in slide 7)
5. LBT was 57% higher mainly due to higher finance costs on (i) LKC notional interest increased by RM15mil (ii) Unrealized FOREX loss by approx by RM17mil and (iii) Vendor financing interest of approx RM10mil but mitigated of higher EBITDA of approx RM15mil
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Solution Pillar Operational Performance
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Strong Customer Base Continuous Loyalty & Confidence From Leading Operators
MTN Nigeria
5,000 units
Wind Telecom Dominican Republic
7,650 units
LTE
Wimax
Sevenex Angola
10,000 units
Globe Philippines
32,000 units SMART Communications
Philippines
47,200 units
LTE
Wimax
Wimax
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
LTE - Building Traction From Trial To Commercial
*GSA, WiMAX Forum, Green Packet Records - Includes commercial, committed and planned networks
2012
Soft Launch of Green Packet’s and the industry’s 1st LTE+WiMAX Device @ Singapore
Commercial Launch of the Green Packet
POD and OD portfolio
Preview Launch of Green Packet’s 1st LTE Device @ MWC Barcelona
Q4 2013
8 trial clients
11 trial clients
Q2 2013 Q3 2013
61 TD-LTE
21 WiMAX
+ LTE
13 Trial
Clients
2 Commercial Clients
63 TD-LTE
30 WiMAX
+ LTE
33 Trial
Clients
3 Commercial Clients
Q1 2013 2013 Q4 2013 Q1 2013
65 TD-LTE
30 WiMAX
+ LTE
35 Trial
Clients
Q2 2014
8 Commercial Clients
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
LTE – Expanding Product Portfolio Catering to a broader market ready for adoption
TDD & FDD Multi-mode LTE Mobile Router
TD-LTE Industrial-Level Outdoor CPE Band 42, 43
FDD: Band 1, 3, 7, 20
TDD: Band 38, 40, 41
WCDMA: Band 1, 2, 5
GSM: Band 2, 3, 5, 8
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Devices – CPE Shipments in Q2 2014
84,785 units -46 % YoY 9% QoQ
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Revenue & EBITDA as of Q2 ’14
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
GROUP FINANCIAL
PERFORMANCE
FOR THE PERIOD ENDED 30 JUNE 2014
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Key Financial Highlights Q2 2014
Revenue (‘million) EBITDA (‘million)
Revenue drop
8% 2Q14 vs 2Q13
EBITDA increase
182% 2Q14 vs 2Q13
Group
140
Broadband
67
(48%)
Comms
42
(30%)
Solution
31
(22%)
Group
26.5
Broadband
15.9
Comms
2.9
Solution
7.7
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Result from Operational Units
-8% YoY negative growth
6% QoQ positive growth
Revenue
YOY • Software & Devices : lower devices qty shipped • Broadband : recorded lower revenue due to lower subscribers QOQ • Software and Devices : Improved device qty shipped • Broadband : reduced subcribers recorded
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Result from Operational Units
EBITDA
QoQ growth +10% +114% +149% -68% +53% +27% +28%
YoY Group EBITDA margin increase 183% mainly due to:
Higher contribution from Broadband Pillar
EBIDTA margin
+7% +36%
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Result from Operational Units
Operational Losses
Operational Losses (After MI)
-65% YoY negative growth
-188% QoQ negative growth
-25% YoY negative growth
-768% QoQ negative growth
C o p y r i g h t @ 2 0 1 2 - 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
1st To Invent Again GP Files New Patent For CM
Managing System For Intelligent Network Selection and Seamless Network Roaming for Computing Devices (Patent Application No.: PI 2012003910)
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