DTAC: Total Access Communication Public Company Limited | Annual Report 2013
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2C 4C 11 10 9 8 7 6 5 4 contents vision, mission, 002 and strategy 050 milestones 098 shareholder structure 004 financial highlights 054 risk and mitigation 100 dividend policy management discussion 016 corporate information 062 management 103 and analysis message from report of the board of 018 the Chairman and CEO 074 corporate governance 109 directors’ responsibility for the financial reports report of independent 020 board of directors 084 audit committee’s report 110 auditor nomination 026 executive management 086 committee’s report 112 financial statements corporate and governance notes to consolidated 030 group structure 087 committee’s report 121 financial statements business performance remuneration 033 and outlook 088 committee’s report 178 glossary corporate social interested & connected 039 responsibility 089 person transactions 002 Total Access Communication PLC. vision mission strategy Vision: Mission: Empower Societies We are here to help our customers We provide the power of digital communication, We exist to help our customers get the full enabling everyone to improve their lives, build benefit of being connected. Our success is societies and secure a better future for all. measured by how passionately they promote us. Strategy: Internet for All Data represents the next growth curve. We will increase and monetize data usage and selectively build new stand-alone services positions. We will innovate on our core services to differentiate and improve customer experience, and further refine retail and wholesale pricing to monetize the shift from voice to data. Loved by Customers To continue to deliver higher growth than peers, it is increasingly important to win and retain existing mobile subscribers, and to strengthen the ties we have with customers - delivering what customers truly value. Efficient Operations We aim to utilize our resources to better meet future customer needs. Improving efficiency and changing how we operate will allow us to invest time and money in the customer experience. annual report 2013 003 Shortening the distance between people and information is the new definition of “connect”. As a customer-oriented telecommunications company, connecting people is everything to us. Our continuous development, both internally and externally, is not only to help us succeed, but to help our customers live better lives 2C 4C 11 10 9 8 7 6 004 Total Access Communication PLC. 5 4 financial highlights 2011 2012 2013 Operating Results (in THB million) Service Revenues 73,188 78,235 80,659 Total Revenues 79,199 89,497 94,617 EBITDA 27,296 26,818 30,047 Operating Profit 16,662 15,163 15,909 Net Profit 11,812 11,282 10,567 Operating Cash Flow * 21,463 17,473 15,645 Balance Sheet (in THB million) Total Assets 103,866 101,043 105,054 Total Liabilities 69,057 66,198 72,334 Total Shareholders’ Equity 34,809 34,845 32,720 Ratio EBITDA Margin 34.4% 29.9% 31.7% Operating Profit Margin 21.0% 16.9% 16.8% Net Debt : EBITDA - 1.0 0.9 Net Debt : Equity - 0.8 0.8 Shares No. of Shares (million) 2,368 2,368 2,368 Earnings per Share (THB) 4.99 4.77 4.46 Book Value per Share (THB) 14.70 14.72 13.82 Share Price** SET (THB / Share) 69.50 88.25 97.00 SGX (USD / Share) 2.44 2.80 3.30 * Operating Cash Flow = EBITDA – CAPEX ** As of the last trading day of each calendar year Note: Financial statements for 2011 and 2012 were restated. annual report 2013 005 Number of Smartphone Subscribers 28 Users 9 (million) (million) +60% 24.4M 3.5M 9M 33% 6M 4M 4% 24% Prepaid Postpaid Smartphone Penetration 2011 2012 2013 Mobile Data Mobile Data Users 11 Revenue 17 (million) (THB billion) +17% +79% 17 11M 38% 9M 9 6M 5 Data users to total subscribers 2011 2012 2013 2011 2012 2013 006 Total Access Communication PLC. DATA TRANSFER VIDEO CONFERENCE REAL TIME UPDATE NEWS UPDATE STOCK MARKET Change % Change Real Time Price 20.83 0.25 1.24% 1D5D 1M 3M 6M 1Y 2Y 5Y Max Compare to S&P 500 Nasdaq Dow Company or symbol Add Reset 50 40 30 20 10 0 1962 1970 1980 1990 2000 2010 200.00M 2C 4C 11 10 9 8 7 annual report 2013 007 6 5 4 DATA TRANSFER INTERNET FOR ALL VIDEO CONFERENCE REAL TIME UPDATE BUSINESS OPPORTUNITY Because all businesses must thrive to survive, we are committed to making our network better everyday NEWS so you can always get quality connection to UPDATE everything you need to maximize your business potential. STOCK MARKET Change % Change Real Time Price 20.83 0.25 1.24% 1D5D 1M 3M 6M 1Y 2Y 5Y Max Compare to S&P 500 Nasdaq Dow Company or symbol Add Reset 50 40 30 20 10 0 1962 1970 1980 1990 2000 2010 200.00M 008 Total Access Communication PLC. VIDEO CALL LONG DISTANCE APPLICATION CONNECTION Current Call 2C 4C 11 10 9 annual report 2013 009 8 7 6 5 4 INTERNET FOR ALL EMOTIONAL No matter the distance apart, loved ones can always connect and share their feelings via superior network technology. VIDEO CALL LONG DISTANCE APPLICATION CONNECTION Current Call 010 Total Access Communication PLC. WEATHER FORECAST Partly Cloudy TODAY o FARMER INFO 32 C APPLICATION Chance of rain Wind Speed 6% 7 km/h ONLINE Agricultural INFORMATION Market Cassava THB-KG. 30 +15% Rice THB-TONs. 16 +32% annual report 2013 011 WEATHER FORECAST INTERNET Partly Cloudy FOR ALL TODAY o FARMER INFO 32 C APPLICATION KNOWLEDGE Chance of rain Wind Speed 6% 7 km/h Because the internet is a vital source of knowledge, we are providing internet for all customers. Now everyone can make their businesses grow and improve their quality of lives. ONLINE Agricultural INFORMATION Market Cassava THB-KG. 30 +15% Rice THB-TONs. 16 +32% 012 Total Access Communication PLC. IDEA INSPIRATION Search Wikipedia ACCESSIBILITY creative IN RURAL AREAS knowledge information etc. EDUCATION ONLINE LEARNING annual report 2013 013 IDEA INSPIRATION Search Wikipedia INTERNET FOR ALL ACCESSIBILITY creative IN RURAL AREAS INSPIRATION knowledge information We are committed to improving education for children in rural areas, giving them an opportunity etc. to become more successful. EDUCATION ONLINE LEARNING 014 Total Access Communication PLC. SHOPPING ONLINE NEW SHARING ARRIVALS EXPERIENCE ADD TO CART PAYMENT ENJOY ENTERTAINMENT CHECK-IN annual report 2013 015 SHOPPING ONLINE NEW SHARING ARRIVALS EXPERIENCE INTERNET FOR ALL ADD TO CART PAYMENT EXPERIENCE We build a network that responds to all customer needs so the internet can always bring new experiences to all. ENJOY ENTERTAINMENT CHECK-IN 2C 4C 11 10 9 8 7 016 Total Access Communication PLC. 6 5 corporate information 4 Corporate Information Name Total Access Communication Public Company Limited Symbol dtac Registered Number 107538000037 Type of Business Operates mobile business on 800 MHz, 1800 MHz, and 2.1 GHz frequency bands Registered Capital THB 4,744,161,260 (2,372,080,630 ordinary shares of THB 2 per share) Paid-up Capital THB 4,735,622,000 (2,367,811,000 ordinary shares of THB 2 per share) Address 319 Chamchuri Square Building, 22nd – 41st Floors, Phayathai Road, Pathumwan, Bangkok 10330 Tel: (66 2) 202 8000 Fax: (66 2) 202 8929 Website: www.dtac.co.th annual report 2013 017 References Share Registrar Thailand Securities Depository Company Limited 62 the Stock Exchange of Thailand Building, Ratchadapisek Road, Klongtoey, Bangkok 10110 Tel: (66 2) 229 2800 Fax: (66 2) 654 5427 Call Center: (66 2) 229 2888 Website: www.tsd.co.th Boardroom Limited 50 Raffles Place #32-01 Singapore Land Tower Singapore 048623 Tel: (65) 6536 5355 Auditor Mr. Sophon Permsirivallop Certified Public Accountant (Thailand) No. 3182 Ernst & Young Office Limited 33rd Floor, Lake Rajada Office Complex, 193/136-137 New Ratchadapisek Road, Klongtoey 10110 Tel: (66 2) 264 0777 Fax: (66 2) 264 0789-90 Website: www.ey.com Debenture Registrars Kasikorn Bank Public Company Limited 1 Soi Kasikornthai, Ratburana Road, Ratburana, Ratburana, Bangkok 10140 Tel: (66 2) 470 1994, (66 2) 470 6662 Fax: (66 2) 470 1998 Website: www.kasikornbank.com Bangkok Bank Public Company Limited 333 Silom Road, Silom, Bangrak, Bangkok 10500 Tel: (66 2) 230 1136 Fax: (66 2) 626 4545-6 Website: www.bangkokbank.com 018 Total Access Communication PLC. 2C 4C message from the Chairman and CEO 11 10 9 8 7 6 5 4 Mr. Boonchai Bencharongkul Chairman of the Board of Directors Mr. Jon Eddy Abdullah Director/Chief Executive Officer annual report 2013 019 Dear Shareholders, Year 2013 was marked as the year of launching our high quality 3G customer feedback, we move steadily forward towards our services on the new 2.1 GHz TriNet network under the subsidiary stretched ambition to be ‘Loved by Customers’. The measured DTN. With acquiring the license in 2012, and the establishment on customer satisfaction was kept stable in 2013, while the Net roaming agreements between DTN and dtac in 2013, we secured Promoter Score has steadily improved. These are encouraging the continuation of our proud history as a mobile service provider feedback in a year of massive customer transition, which inspires in Thailand when launching the services on the new network on 23rd the organization to take the next step in 2014. To support our July 2013. We are well on our way to meet the ambition to roll out customers, dtac has also made important modernization in our the new network across Thailand with more than 80% population Billing systems, our Business Intelligence Systems and Service coverage. dtac’s vision is about ‘Empowering Societies’, enabling Delivery Platforms, which all enable us to better meet customer everyone to improve their lives, build societies and secure a better demands, give seamless services and provide value to our future for all.