THCOM Investor Bualuang CM 140823

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THCOM Investor Bualuang CM 140823 THAICOM Public Company Limited 23 rd August 2014 at Le Meridien Chiang Mai Hotel Agenda • Thaicom…Who We Are • Financial Highlight • Moving Forward • Appendix 2 Who We Are 3 Our Company • Thaicom Public Company Limited (formerly named Shin Satellite) was founded on 7th November 1991, part of Intouch Holdings Public Company Limited • His Majesty King Bhumibol Adulyadej of Thailand graciously named the first national communications satellite, “THAICOM” which stands for “Thai Communications”. 4 Shareholding Structure Aspen Holdings Ltd. (Temasek Holdings) 41.62% Intouch Holdings Plc 1),2) 40.45% 41.14% 52.92% 99.96% 99.99% I.T. Applications and Services Co., Advanced Info 2) ITV Plc 2) Matchbox Co., Thaicom PLC Ltd. Service Plc 2) Ltd. IPSTAR Co., Ltd. 99.96% IPSTAR New Zealand Co., Ltd. 100.00% 1) Holding Company 2) Listed Company on the Stock Exchange of Thailand STAR Nucleus Co., Ltd 100.00% Spacecode Co., Ltd 70.00% IPSTAR International Pte Ltd. 100.00% IPSTAR Global Service Ltd. 100.00% IPSTAR Australia Co., Ltd. 100.00% IPSTAR Japan Co., Ltd. 100% Orion Satellite Systems Pty Limited Co., Ltd Shenington Investments Pte Ltd. 51% 100.00% DTV Service Co., Ltd. 99.99% Cambodian DTV Network Ltd. 100% CS LoxInfo Plc. 2) 42.07% 5 As of July 2014 Our Business Operations Satellite: Revenue Contribution Conventional Satellite Internet & Media 2% Telephone Broadband Satellite 10% Telephone: Regional Mobile Phone Satellite Internet and Media: 88% Platform Satellite TV *As of June 2014 6 Our Satellite Fleet THAICOM 4, 5 & 6 operate under concession, whereas THAICOM 7 & 8 operate under 20-year license scheme. THAICOM 1A Launched: 1993 De-orbited: 2010 THAICOM 4 THAICOM 5 THAICOM 6 THAICOM 2 Launched: 2005 Launched: 2006 Launched: 2014 Launched: 1994 Utilization: 54%* Utilization: 100%* Utilization: 68%* De-orbited: 2010 THAICOM 8 THAICOM 3 THAICOM 7 Launched: 1997 Target Launch: 3Q’14 Target Launch: 1H’16 De-orbited: 2006 Presale utilization: 50%* *As of June 2014 7 Our Capacity Largest Satellite Operator in Asia Pacific (7 th Globally) Satellite Operators' Bandwidth Capacity (Estimated) 3,439 2,819 2,539 2,175 1,575 1,411 992 968 633 612 436 331 330 Estimated Estimated Capacity Equivalent (TPE) ViaSat Eutelsat EchoStar Intelsat SES InmarSat Thaicom Thaicom Telesat Yahsat JSAT ABS China /Hughes 2016 2014 SatCom Note: * Thaicom's capacity Y2014 includes THAICOM 4 , THAICOM 5, THAICOM 6 and THAICOM 7 satellites ** Thaicom's capacity Y2016 includes THAICOM 4 , THAICOM 5, THAICOM 6, THAICOM 7 and THAICOM 8 satellites *** Other satellite operators' capacities (estimated) are as of July 2014 **** TPE = 36MHz transponder equivalent 8 Our Satellite Footprints Coverage Area 50.5E 78.5E 119.5E 120E TC4 TC5 TC6 TC7 TC8 TC5 (C,Ku) TC6 (C,Ku) TC8 (Ku) TC4 (Ku) TC4 TC5 TC6 TC7 TC8 TC7 (C) 119.5 °E 78.5 °E 78.5 °E 120 °E 78.5 °E C Ku C Ku C Ku C Ku C Ku Conventional Satellite Capacity 1 2 (TPE ) Indochina - -- SEA - - - - - - - South Asia - - - - - - 111 North Asia - - - - - - - - 40 Australasia - - - - - - - 2013 2016 ME, Africa - - - - - - - Note: 1. TPE = 36 MHz transponder equivalents Total TPE 881 40 33 14 24 2. Compare Current (2013) and Future (estimated future revenue after 9 TC7 & TC8 are fully utilized) revenues from conventional satellites Our Broadcast Services Asia’s “Hot Bird” for Satellite TV 16 Million viewers or 70% of total TV Covering More than HOUSEHOLDS 120 By Platform COUNTRIES Hosting 677 (116 HD ) SATELLITE TV CHANNELS No.1 in Thailand and Indochina Terrestrial Satellite Cable A key player in South Asia Remark: As of 1H14 Source : Thaicom PLC, Value Partners, Casbaa 10 Our Broadband Services The first and only High Throughput PRESENCE in Satellite (HTS) in Asia Pacific 13 COUNTRIES 17 GATEWAYS 5,000 small-cell 3G sites in Japan 90,000 broadband users in Australia and New Zealand 26,000 schools & 5,500 rural telephony project sites in Thailand 6,000 communities/villages/schools in Malaysia 11 The Journey’s Just Begun… Sustainable & Profitable Growth 2013 In Pursuit of Growth 2012 Profit Turn Around 2011 TC6 TC7 12 2014 New Frontiers 13 Our New Frontiers New birds: TC6, TC7, TC8 New territories: Africa, South Asia Dec 1, 2014 – Jan 31, 2015 New solutions: Mobility, CDN Number of HD channels New partnerships: Gilat, Global Eagle on Thaicom @78.5E 80 New standards: HD, UHD, DTT 60 40 74 New investments: Orion Sat 20 23 11 0 New contributions: NASA, TC 10K 2011 2012 2013 14 Our Awards & Distinctions A Breakout Year: Top Fixed 2013 Board of the Service Satellite Operators (2013) Year Award IPSTAR Receive an Award from Japan’s MIC on Radio Wave Day (2012) Asia-Pacific Communications Deal of the Year 2011 – Thaicom 6 (2012) 2010/2011 Board of the Year Award for Distinctive Practices (2012) Corporate Corporate Social Responsibility Award Governance Score from the World Teleport Association Thailand’s… (2011) Best Mid-Cap 1 Company Certificate of Excellence, 1 Best CEO Best investor relations by a Thai company (2009) 6 #6 Best CSR 15 Our Awards and Distinctions Rank #10 in Global Top Fixed Satellite Service Operators A new component in the SET50 Index Top 50 ASEAN CG Scorecard A- with Stable outlook Rank #3 in terms of Revenue per Satellite 16 Financial Highlights 17 Overall Performance THCOM share performance relative to Thailand SET % Growth 2008 – 2014 % Revenue break up 2009 vs. 2013: Core satellite business contribution to revenue is increasing THCOM ↑ 501% SET ↑ 152% SET Index: 1,550.77 Satellite 2013 Others* 88% 7,896 12% MTHB THCOM Share Performance: Overview Share price*: 39.25 Bhtor ̴ 1.23 USD Diluted Shares 1.096 billion shares Outstanding: Market Cap: 43.01 billion Bht or ̴1.35 billion USD BV/share 14.03 Bhtor ̴ 0.42 USD 2009 Satellite Others* PBV 2.80 5,767 22% 78% MTHB *As at 20 Aug 2014 1 USD = 31.85 THB * Excluding revenues from discontinued operation (Mfone) 3-Jun-15 18 Consolidated revenues contribution by country Thailand Australia 45% 15% 2013 7,896 MTHB Others 14% China 1% India Japan Lao PDR Others 5% 9% 11% o New Zealand o Myanmar o Malaysia o Philippines o Indonesia o Vietnam *Include other income and FX gain/loss 3-Jun-15 19 19 Bottom Line Grew Significantly from Satellite Performance Revenue grew continuously with Consolidated Sale & Services Revenues strong cash flow. Unit: MTHB 7,896 7,266 Y2011, ending cash increased 6,624 5,858 12% due to TC6 loan drawdown and 5,767 14% 14% dropped in Y2012 due to bond 22% 22% 4,824 repayment. 12% 88% 86% Ending Cash 86% 78% 78% 88% 2,866 Others 2,057 2,152 2,330 797 1,271 Satellite revenue 20092009 20102010 20112011 20122012 20132013 1H14 1H14 1,128 897 Continuously improvement of net Net Profit profit margin. 18% Unit: MTHB 174 14% 2% Net Profit Margin -8% -14% -8% 2009 2010 2011 2012 2013 1H14 Net Profit -471 -490 -806 20 Strong Satellite Performances with Improving Margin 6,964 Y2011, EBITDA improved Satellite Revenues 6,279 Unit: MTHB 5,684 since revenue growth significantly from broadband 4,506 4,598 51% 54% 4,261 market expansion in 51% Australia and Malaysia, 50% 48% 49% together with effective cost management. 49% Broadband 46% 50% 52% 49% 51% Conventional Y2013, EBITDA Margin dropped to 48% due to cost 2009 2010 2011 2012 2013 1H14 of interim satellite Satellite EBITDA 54% Unit: MTHB 50% 48% 47% CAGR = 18% 36% 34% 3,373 3,165 Period: Y2009 – Y2014 2,644 2,235 1,635 1,542 EBITDA MARGIN Satellite EBITDA 2009 2010 2011 2012 2013 1H14 21 1H14: Top & Bottom lines grew significantly Key Financial Highlights (Consolidated.) :MTHB 1H13 1H14 ↑35% Consolidated revenue grew YoY significantly from the demand on more satellite capacity, especially for TC6, 4,824 including broadband revenue from China, Japan and Australia 3,567 Net Profit increased 72% YoY since revenue increased considerably whereas SG&A increased only 8% due 2,398 to well managed costs. 1,976 1,758 ↑72% 1,465 YoY 1,099 897 706 521 Revenues GP EBIT EBITDA NET PROFIT 22 22 1H14: Strong revenue growth led by conventional satellite at 47% YoY Satellite Revenues MTHB Satellite EBITDA MTHB 36% 4,261 40% 2,235 3,129 51% 1,594 47% 47% Conventional 26% 49% Broadband 53% 1H13 1H14 1H13 1H14 Conventional revenue boost up from TC6 Satellite EBITDA increase 40% YoY 23 23 1H14: Financial position remains strong 1H14 results of strong cash from D/E Ratio at 0.59x 1 operation Unit: MTHB Equity 16,004 Assets 2 Consolidated CF 1H13* 1H14 24,208 CF from Operating 1,962 2,549 4 CF from Investing (794) (2,829) Cash 4,992 CF from Financing (368) 459 Cash Ending 2,880 2,330 Interest bearing debt * Restated 9,448 Liabilities 3 3,748 1. Interest-bearing Debt / Equity 2. Exclude Cash and Current Investment 3. Exclude Interest-Bearing Debt 4. Include current investments from Synertone shares and B/E, total of 2,662 MTHB. 24 24 Moving Forward 25 Broadcast Service: To support HD & Ultra HD broadcasting Lower TV/IRD costs Higher Broadcast Resolution More households More channels More demand for satellite bandwidth Projected pay DTH channels in Thailand HD channels to grow 45% CAGR, 2012-2020 and 8% CAGR, 2020-2035 Unit: channels SD HD HD channels to replace all SD channels by 2030 957 SD HD 4K 8K 0 866 Number of Satellite TV channels HD 217 on Thaicom @78.5E 800 57% 700 490 > 100 600 116 957 74 TPEs 500 11 23 400 277 352 650 0 300 567 561 160 223 200 358 416 442 100 136 138 0 24 54 2010 2011 2012 2013 1H14 2012 2013 2015 2025 2035 Source : Thaicom PLC SD channel HD channel Source : Value Partners 26 Broadcast Service: To support HD & Ultra HD broadcasting French Open (May-Jun): 1st 4K transmissions over DTT network 4K Cable TV (Apr):
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