Transcript 4Q2003 Results - True Corporation

FY03 Analyst Conference
March 10, 2004
Content
 FY 2003 results
-
2003 highlights
-
Financial summary
-
TA Orange
-
2004 outlook and strategy
 The planned acquisition of Orange’s stake
in TA Orange
 Appendix
2
2003 Highlights; Financial results (1)
Revenue &
EBITDA
TA Orange’s
break-even
Cost
controls
Free cash
flows
• Consolidated revenue and EBITDA growth of 8.4% and 18.8%
including TA Orange
• TA Orange achieved EBITDA break-even in September 2003 and
the trend continued into 4Q03
• Cash Opex at TA (stand-alone) reduced by 4.8%
• TA Orange cut cash Opex in 2H03 by 14.9% from 1H03
• EBITDA margin (excl. TA Orange) up 90 bps. to 52%
• Strong free cash flows mainly from core wireline business
 Bt 5.2 billion in 2003; up 10.2% over 2002
 Capex contained at ~ Bt 3 bn (excl. TA Orange)
3
2003 Highlights; Financial results (2)
Balance sheet
• Further steps taken to strengthen Balance Sheet
 completely eliminating US Dollar exposure;
 refinancing of Bt 21 bn in Thai bank loans; and
 repayment of loans by Bt 3.8 billion; net debt to EBITDA 4.7x
• Value added services and data/Broadband/Internet will be new
New growth
drivers
growth drivers
 Data/Broadband/Internet growth of 16.6% with increased
contribution to 12.1 percent of consolidated revenue (excl. TA
Orange)
 Wireline value added service grew 33.3%
4
2003 Highlights; Operating results
• Market share maintained at 56% despite 2.9% decline in
Core fixed line
business
TA Orange
subscribers
• Fixed to mobile traffic migration slowed
• Reduced-tariff promotion packages launched
• Subscriber growth of 36.6%(+489K) to 1.8 m at YE2003
• Return to rapid growth in 4Q03 to increase market
share
Data/Broadband
/Internet
• ADSL subs almost tripled in 2003 to 10,643
• Internet subs grew 89% to > 600K
• Launch of one-stop broadband and Internet service at
affordable price of Bt 550 per month
• Moved into on-line game business
5
Revenue diversification (including TA Orange)
2001
2002
VAS & Others
13.3%
PCT
14.9%
2003
VAS & Others
15.5%
VAS & Others
14.1%
Voice
64.3%
7.5%
Data/Internet/BB
TA Orange
12.2%
Voice
53.1%
PCT
11.4%
PCT
7.5%
9.1%
Data/Internet/BB
Baht 20.6 Billion
Voice
48.8%
TA Orange
18.4%
9.8%
Data/Internet/BB
Baht 25.8 Billion
Baht 28.0 Billion
Voice
Wireless
Data/Broadband/Internet
VAS
-0.3%
19%
17%
33%
6
New businesses : new growth drivers
TA
Internet/Content/Application
Broadband
99.9%
Bt 174.4 m
99.9%
Asianet Corporation - ANC
Telecom Holding
90.5%
Asia Multimedia
(Network Provider
Nationwide)
65%
Bt 15.0 m
Asia Infonet
(Internet Service Provider)
70%
Bt 115.0 m
True Internet Data Center
(Internet data Center)
99.9%
Bt 73.5 m
True Digital Entertainment
(On Line Game)
7
Broadband expansion plan
TA aims to expand Broadband coverage to all of BMA by April 2004
ADSL coverage
2001-2002 42%
PRATHUMTHANI
48% by November 2003
67% by December 2003
90% by January 2004
100% by April 2004
NONTHABURI
NAKHON PRATHOM
BANGKOK
SAMUTHSAKHON
SAMUTHPRAKARN
8
Market paradigm shift with new fixed-line
tariff options
Monthly
Original
100 Bt/mth
Long distance
3, 6, 9, 12, 15, 18 Bt/min
To-Mobile
3, 8, 12 Bt/min
(night 1/2, late-night 1/3)
1 st Promotion (Effective Sep 1, 2003)
1.
100 Bt/mth
3, 6, 9, 9, 9, 9 Bt/min
3, 6, 6 Bt/min
(night 1/2, late-night 1/3)
2.
200 Bt/mth
3 Bt/min nationwide
3 Bt/min nationwide
(no off-peak rate)
2 nd Promotion (Effective Jan 16, 2004)
6 tariff packages ranging 1.50 - 2.75 Bt/min
1.50 - 2.75 Bt/min
fromand
50-800 Bt/mth
(3Bt/min for the first min and
(3Bt/min for the first min
mins exceeding talk plans)
mins exceeding talk plans)
9
 Financial summary
10
Consolidated profit and loss statements
(including TA Orange)
4Q03
4Q02
3Q03
%YoY
%QoQ
FY03
FY02
%YoY
Revenue
7,334
7,050
6,775
4.0%
8.2%
27,950
25,783
8.4%
EBITDA
3,177
2,418
2,805
31.4%
13.2%
11,642
9,798
18.8%
NIOGO*
(1,066)
(1,323)
(1,208)
19.5%
11.8%
(4,519)
(1,605)
-181.6%
2,402
2,071
1,963
16.0%
22.4%
7,076
4,455
58.8%
764
(114)
(773)
767.9%
198.8%
(3,303)
(4,298)
23.2%
CF from Operation
FCF
* NIOGO represents net income (loss) from ongoing operations including share of loss in associates but
excluding non-recurring items.
11
Consolidated profit and loss statements
(excluding TA Orange)
4Q03
4Q02
3Q03
%YoY
%QoQ
FY03
FY02
%YoY
Revenue
6,015
5,687
5,641
5.8%
6.6%
22,961
23,046
-0.4%
EBITDA
3,021
2,678
2,932
12.8%
3.0%
11,939
11,772
1.4%
NIOGO*
(453)
(722)
(396)
37.2%
-14.3%
(1,571)
(1,125)
-39.7%
CF from Operations
2,551
3,036
1,993
-16.0%
28.0%
8,157
7,567
7.8%
FCF
1,668
2,324
1,148
-28.2%
45.3%
5,162
4,682
10.2%
* NIOGO represents net income (loss) from ongoing operations including share of loss in associates but
excluding non-recurring items.
12
Consolidated profit & loss statements
(stand-alone)
4Q03
4Q02
3Q03
%YoY
%QoQ
FY03
FY02
%YoY
Revenue
5,318
5,022
4,970
5.9%
7.0%
20,352
20,320
0.2%
EBITDA
2,677
2,201
2,490
21.6%
7.5%
10,107
9,562
5.7%
NIOGO*
19
(348)
(79)
NM
NM
(276)
CF from Operation
1,916
2,581
1,590
-25.7%
20.5%
6,740
6,541
3.1%
FCF
1,487
2,156
928
-31.0%
60.2%
4,574
4,280
6.9%
(59) -371.2%
* NIOGO represents income (loss) from ongoing operations excluding share of loss in associates and
non-recurring items.
13
Capex & Opex (stand- alone)
Capital expenditures (TA stand-alone)
Operating expenses (TA stand-alone)
THB million
Bt mm
32,000
3,000
15%
11.7%
2,500
2,000
7.3%
11.1%
10.6%
2,207
1,000
957
2,261
2,167
28.5%
27.1%
26.3%
6,272
6,754
7,270
5%
10,370
10,757
10,245
2000
Capex
8,000
4,000
0%
2001
2002
2003
Capex as a % of Rev.
30%
20,000
12,000
1,387
0
1999
27.6%
16,000
1,500
500
28.4%
24,000
10%
8.1%
28,000
40%
6,080
20%
5,501
6,283
10%
8,808
0
0%
1999
2000
2001
2002
Depreciation
Cash Opex
Core Opex as A % of Rev.
2003
14
Strengthening balance sheet
• In 2003, TelecomAsia took further steps to improve the Balance Sheet
– Issued a new bond of Bt 3.3 bn to retire the last portion of US Dollar debt
– Refinanced Bt 21 bn in Thai bank Baht loans
– Repaid Bt 3.9 bn in debts
USD exposure
Debt service schedule - TA stand-alone
USD mm
THB million
Dec 2002 repayment
schedules
10,000
9,951
8,363
8,000
855
7,480
6,575
3,163 1,080
4,455
6,000
4,189
4,000
2,664
2,000
0
1,021
8,855
1,784
3,142
3,090
2,942
2,890
200
2004
200
2005
Thai Bank
7,182
591
4,575
3,989
78
880
2003
809
200
2006
2,000
5,200
6,400
4,400
2,769
2007
2008
2009
2010
2011
Others
0
1998
1999
2000
2001
2002
2003
Before Refinancing
15
Transformed balance sheet and cash
flows (excluding TA Orange)
Net debt/EBITDA
12.0
EBITDA/Interest coverage
4.00
10.0x
10.0
7.3x
8.0
3.1x
2002
2003
3.00
6.7x
2.2x
5.1x
6.0
3.2x
4.7x
2.00
4.0
1.7x
1.3x
1.00
2.0
0.0
1999
2000
2001
2002
2003
0.00
1999
2001
Free cash flow
Cash flow from operations
Bt mm
Bt mm
10,000
7,567
8,000
6,000
8,157
8,000
6,000
4,464
4,000
2,000
2000
4,682
5,162
4,000
3,229
2,000
1,353
1,534
1,810
2000
2001
75
0
0
1999
2000
2001
2002
2003
1999
2002
2003
16
TA Orange contribution
Revenue
THB millions
1,436
1,301
491
1,310
154
176
287
945
297
1,147
1,134
132
93
40
278
205
84
767
575
1,290
1,176
1,092
1,085
480
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03
Service
Handset Sales
EBITDA
Net profit *
THB millions
THB millions
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03
107
-204
-122
-154
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
-98
-388
-375
-657
-547
-728
4Q03
-601
-658
-740
-742
-794
-877
* Before amortization of negative goodwill
17
 TA Orange
18
TAO is resuming its growth
Based on quality of network and customers
2003 Orange Net Adds
120,000
100,000
80,000
60,000
40,000
20,000
Sources : TA Orange’s report
Dec-03
Nov-03
Oct -03
Sep-03
Aug-03
Jul-03
Jun-03
May -03
Apr-03
Mar-03
Feb-03
(20,000)
Jan-03
-
19
Customer base is now healthier
churn has been drastically reduced
Churn
16%
14%
prepaid
postpaid
12%
10%
8%
6%
Source: internal estimates
AIS
1.8%
DTAC
3.2%
03
Dec-
03
Nov-
03
Oct-
03
Aug-
03
03
Jul-
Latest available
monthly churn
estimates :
Sep-
03
Jun-
03
May-
03
Apr-
03
Mar-
03
Feb-
Jan-
0%
03
4%
2%
Orange
3.6%
Source: internal estimates based on company reports.
20
A quality customer base
Postpaid ARPU slightly increased
Prepaid ARPU still ahead from competition
Prepai d AR PU
Postpaid AR PU
1,250
1,200
450
400
1,150
1,100
350
1,050
1,000
300
950
250
900
AIS
DTAC
Blended ARPU
in December (Bt) :
Orange
AIS
479
AIS
DTAC
411
DTAC
Dec-03
Nov-03
Oct-03
Sep- 03
Aug-03
Jul-03
Jun-03
May-03
Apr-03
Mar-03
150
Jan-03
Dec- 03
Nov- 03
Oct- 03
Sep- 03
Aug- 03
Jul- 03
Jun- 03
May- 03
Apr- 03
Mar- 03
Feb- 03
Jan- 03
800
Feb-03
200
850
Orange
Orange
461
Sources : Company reports and internal estimates
21
Congestion has now disappeared
TAO is now delivering world-class service nationwide
Call blocking rate
31 July 03
Call blocking rate
9 Jan 03
level block rate (%)
customer
experience
# of
provinces
0% - 1.5 %
1.5% - 2%
excellent
80
good
0
2% - 5%
5% - 100%
acceptable
1
noticable
BMA
%
496,069
42,543
67%
6%
200,283
27%
Call blocking rate
15 Dec 03
UPC1
%
251,556 91%
- 0%
25,101 9%
UPC2
0
,
0
%
,
979
%
Total
383,216 79%
39,554 8%
60,294 12%
Sources- : TA%Orange’s -network
tracking
%
0
total >
%
,
1,130,841 75%
82,097 5%
225,384 15%
22
report
0%
0%
%
1,499,595
%
Market share targets 2004 (Gross adds)
Moving up to 19%, as TAO resumes its aggressive strategy
2003
2003
TM1900
2%
DTAC
30%
2004
2004
Orange
14%
Hutch
4%
AIS/DPC
50%
Sources (2003) : companies’
reports, internal estimates.
DTAC
28%
TM1900
0%
Orange
19%
Hutch
5%
AIS/DPC
48%
23
Strategic priorities for 2004
•
Grow from strength / TA synergy
•
Data / non-voice / fun & games
•
Lifestyle & segmentation
•
•
•
Customer perception:
– Good and growing network
– Best for value and fair
Take advantage of:
– Churn market & second SIM
– Access charge / interconnection
Push for regulatory change
24
 2004 Outlook & strategy
25
2004 industry outlook (1)
Overall ICT
industry
Core fixed line
business
Telecom liberalization
 NTC formation
 Interconnection regime
 Concession Conversion
 Listing of TOT
The government’s aggressive policy on broadband will
stimulate the market
Growth expected in SMEs, large corporates, 2nd home line
for fax, internet, teens
Flexible tariff allows wireline operators to better meet the
distinctive needs of each customer segment
Focus on VAS, applications and solutions for each customer
 segment
26
2004 industry outlook (2)
Wireless
Data/Broadband
/Internet
Focus on CRM/retention and growing non-voice
Net adds projected at 3.8 million subs
Interconnection replaces access charge
Growth in internet/intranet usage will spur demand for high
bandwidth data links to major cities upcountry
The doubling of domestic internet traffic from 3.4 GB/day to
6.8 GB/day in 2003 suggests that we continue to see high
double digit growth
27
TA Group Vision
Solutions/
Outsourcing
Corporate
Solutions/
Outsourcing
EXISTING ORGANIZATION
Support Units
Products
Spin-offs
Customer Mgt
/Contact Center
Fixed Line
Retail/ Distribution
IT/ Billing
Mobile
Core Network
Network
Operation
& Technology
Support Units
Data
Legal/ Regulatory
Customer
SME
Solutions/
Outsourcing
HR
Internet/
Broadband
Finance
Payment/
eCommerce
Consumer/
Home
Lifestyle
Solutions
Future Growth
Community
Content/
Applications
Lifestyle
Retailing
28
 TA Orange deal
29
The deal : key details

Orange to sell 39% of BITCO/TA Orange to TA as part of ongoing strategy to focus on
core European investments
-
Orange retains 10% shareholding to share in future growth
-
Orange to retain Board seat until shareholding drops below 4%
-
TA’s shareholding will increase to 83%
-
CP shareholding remains unchanged at 7%
30
The deal : key details

Shares obtained at good price
- Price one Baht
- Book value of TA Orange Bt 5.6 bn as at 31 Dec 2003

Deal contingent on refinancing of TA Orange, expected late second quarter

Free use of “Orange” name for 3 years

Access to Orange expertise maintained

TA shareholder approval on April 9, 2004
31
Investment in TA Orange

Current holding of approximately 44% of TA Orange
- TA Orange’s paid-up capital is Bt 21 bn
- TA holds 921 shares of TA Orange ( a par value of Bt 10 per share)
- Acquired 615 m. shares in Oct 2001 through a share swap deal by issuing new
307 m TA shares with 100 m equity warrants (expired)
- Acquired 306 m shares in October 2002 at Bt 10 per share

TA will acquire additional 39% shareholding or approximately 819 m shares for Bt 1

The value of TA Orange investment will increase significantly upon TA Orange’s IPO;
thus increasing shareholders’ value
- TA Orange’s IPO is expected in late 2004 at the earliest
32
Orange sell-down will strengthen TA market
position

TA Orange strong growth prospects

36% subs growth in 2003 - above industry average.

1.8 million subs at YE 2003 - 8% market share

Reached EBITDA breakeven within 18 months
-

Significant financial improvement in the past 6 months
To improve network quality and coverage in 2004 to accommodate future growth
33
Orange sell-down will strengthen TA market
position

The 83% shareholding in TA Orange and full management control will strengthen TA’s
position as only fully integrated telecommunication company

TA can proceed with new developments in bundling wireline and wireless services for a
single customized package offering; key advantage in liberalized market

Significant cost savings from consolidation of aspects of operations
34
 Q&A
35
Appendix
Slides (#)
1. Consolidated income statements (excluding TA Orange)
37
2. Consolidated income statements (Including TA Orange)
38
3. Non-consolidated income statements
39
4. Balance sheet
40
5. Cash flow statements
41
6. Debt profile (Excluding TA Orange)
42
7. Consolidated revenue profile by segment
43
8. Consolidated expense profile
44
9. Business segment
9.1 Fixed line telephone
45
9.2 Wireless
46
9.3.Data/Internet/Broadband
47
36
Appendix 1: Consolidated income statements
(excluding TA Orange)
Normalized income statements
Consolidated
THB millions
Revenues
Cash Operating Expense
Revenue sharing
EBITDA
Depreciation and amortization
Operating profit
4Q03
6,015
3Q03
5,641
4Q02
5,687
QoQ
% Chg.
YoY
% Chg.
FY03
FY02
YTD
% Chg.
22,961
23,046
6.6%
5.8%
(2,994) (2,709) (3,009)
10.5%
-0.5%
(1,023)
17.4%
16.5%
(3,675)
(3,577)
2.7%
3.0%
12.8%
11,939
11,772
1.4%
1.3%
7.0%
(9,221)
(8,597)
7.3%
3,021
(871)
2,932
(878)
2,678
(2,364) (2,333) (2,210)
(11,021) (11,274)
-0.4%
-2.2%
657
599
468
9.7%
40.3%
2,718
3,175
(934)
(895)
(988)
4.4%
-5.5%
(3,781)
(3,673)
(11)
(39)
(27)
-72.8%
-60.9%
(122)
(144) -14.8%
Income from continuing operations
(288)
(335)
(547)
14.1%
47.4%
(1,185)
(642) -84.6%
Share of losses in associates
(165)
(61)
(174) -169.7%
5.4%
(386)
Net income from continuing operations
(453)
(396)
-14.3%
37.2%
(1,571)
(1,125) -39.7%
(1,315)
(282)
-366.2%
NM
(1,219)
(3,813)
68.0%
(344)
(308)
-11.7% -360.9%
(298)
(349)
14.6%
Net profit (loss)
(1,767)
(678)
NM
(2,790)
(4,938)
43.5%
EBITDA margin
50.2%
52.0%
47.1% -175 bps +314 bps
52.0%
Interest expense – net
Tax
Non recurring items & others
Gain ( loss ) on foreign exchange
(722)
2,578
(75)
1,856
-160.6%
(483)
-14.4%
2.9%
20.1%
51.1% +92 bps
37
Appendix 2: Consolidated income statements
(including TA Orange)
Normalized income statements
Consolidated
THB millions
Revenues
4Q03
7,334
3Q03
6,775
4Q02
QoQ
YoY
% Chg.
% Chg.
7,050
8.2%
4.0%
FY03
FY02
YTD
% Chg.
27,950
25,783
8.4%
Cash Operating Expense
(4,157) (3,970)
(4,632)
4.7%
-10.3%
Revenue sharing
(1,455) (1,305)
(1,231)
11.4%
18.1%
(5,452)
(4,290)
27.1%
2,418
13.2%
31.4%
11,642
9,798
18.8%
(2,569)
1.4%
12.0%
(11,151)
(9,277)
20.2%
(32)
(151)
NM
NM
(1,173) (1,062)
(1,140)
10.5%
2.9%
(4,443)
(3,827)
16.1%
(39)
(27)
-72.8%
-60.9%
(123)
(144)
-14.6%
Income from continuing operations
(884) (1,133)
(1,318)
22.0%
32.9%
(4,074)
(3,449)
-18.1%
Share of losses in associates
(182)
(5) -141.7% -3370.2%
(444)
EBITDA
Depreciation and amortization
Operating profit
Interest expense – net
Tax
3,177
2,805
(2,877) (2,837)
300
(11)
(75)
Net income from continuing operations (1,066) (1,208)
Non recurring items & others
Gain ( loss ) on foreign exchange
Net profit (loss)
EBITDA margin
(1,271)
(255)
(347)
(306)
(2,336) (1,463)
43.3%
41.4%
(1,323)
(16,307) (15,985)
491
521
2.0%
-5.8%
1,844
NM
11.8%
19.5%
(4,519)
(1,605) -181.6%
-398.3%
NM
(1,155)
(3,790)
69.5%
-13.4% -245.1%
(311)
(403)
22.9%
NM
(5,674)
(5,394)
-5.2%
34.3% +191 bps +902 bps
41.7%
2,552
(100)
1,228
-59.7%
38.0% +365 bps
38
Appendix 3: Non-consolidated income statements
Normalized income statements
Non-Consolidated
THB millions
Revenues
4Q03
5,318
3Q03
4,970
4Q02
5,022
QoQ
YoY
% Chg.
% Chg.
7.0%
5.9%
FY03
FY02
YTD
% Chg.
20,352
20,320
Cash Operating Expense
(2,641) (2,480) (2,821)
6.5%
-6.4%
Revenue sharing
(1,280) (1,138) (1,241)
12.5%
3.2%
(4,814)
(5,228)
-7.9%
7.5%
21.6%
10,107
9,562
5.7%
2.7%
7.7%
(7,270)
(6,754)
7.6%
EBITDA
Depreciation and amortization
Operating profit
2,677
2,490
2,201
(1,884) (1,834) (1,749)
(10,245) (10,757)
0.2%
-4.8%
793
656
452
20.9%
75.5%
2,837
2,808
1.0%
(774)
(734)
(800)
5.4%
-3.3%
(3,113)
(2,867)
8.6%
NM
NM
-
-
(348)
NM
NM
(276)
(58) -372.2%
(1,370) (1,245) (1,101)
-10.0%
-24.4%
(4,415)
(807) -446.9%
Net income from continuing operations (1,351) (1,324) (1,450)
-2.1%
6.8%
(4,691)
(866) -441.9%
Interest expense – net
Tax
-
Income from continuing operations
Share of losses in associates
Non recurring items & others
Gain ( loss ) on foreign exchange
Net profit (loss)
EBITDA margin
19
(79)
-
(986)
(139)
2,678
-607.0%
NM
(983)
(151)
(127)
3
-18.7%
NM
(99)
(2,336) (1,463)
1,228
-59.7%
NM
(5,674)
43.8% +24 bps +651 bps
49.7%
50.3%
50.1%
(4,529)
NM
78.3%
45
(5,394)
NM
-5.2%
47.1% +260 bps
39
Appendix 4: Balance sheets
Consolidated
THB millions
ASSETS
Current assets
Cash and restricted cash
Other current assets
Non current assets
Investments
Property, plant & equipment
Other assets
TOTAL ASSETS
31-Dec-03 31-Dec-02
Non-Consolidated
% chg.
31-Dec-03 31-Dec-02 % chg.
4,636
12,534
7,618
11,011
-39.1%
13.8%
2,128
9,640
3,999
8,088
-46.8%
19.2%
3,753
63,019
2,819
4,139
66,871
3,339
-9.3%
-5.8%
-15.6%
6,423
35,939
1,783
10,661
40,873
2,140
-39.8%
-12.1%
-16.7%
86,760
92,977
-6.7%
55,913
65,761
-15.0%
85,265
85,779
-0.6%
54,835
59,016
-7.1%
27,407
57,858
14,126
71,653
94.0%
-19.3%
6,543
48,292
8,200
50,816
-20.2%
-5.0%
1,495
7,198
-79.2%
1,078
6,745
-84.0%
86,760
92,977
-6.7%
55,913
65,761
-15.0%
LIABILITIES & EQUITY
LIABILITIES
Current liabilities
Non-current liabilities
EQUITY
TOTAL LIABILITIES & EQUITY
40
Appendix 5: Cash flow statement
THB millions
Cash flow from operation
Consolidated
FY03
FY02
% YTD.
4,455
58.8%
6,740
6,541
3.1%
(10,378)
(8,753)
-18.6%
(2,167)
(2,261)
4.2%
Free cash flow
(3,303)
(4,298)
23.2%
4,574
4,280
6.9%
Investments
(1,518)
(367)
-314.0%
(1,870)
(3,803)
2,998
-100.0%
-
2,998
28
670
-95.8%
-
-
Proceeds from borrowings
7,863
7,722
1.8%
-
1,125
-100.0%
Proceeds from debentures
3,292
18,065
-81.8%
3,292
18,065
-81.8%
Less : Capex
7,076
Non-Consolidated
FY03
FY02
% YTD.
50.8%
Net financing
Issue of common shares
Short term loan
Repayment on LT trade A/P
Repayment of borrowings
Net cash from financing activities
-
-100.0%
NM
(181)
(678)
73.3%
-
-
(7,434)
(23,662)
68.6%
(6,228)
(22,545)
72.4%
5,116
-30.3%
(2,936)
(357)
-722.1%
451
-377.4%
(233)
119
-294.8%
3,568
NM
Change in cash
(1,253)
Cash beginning
3,136
2,684
16.8%
373
253
47.1%
Cash ending
1,883
3,136
-39.9%
140
373
-62.4%
41
Appendix 6: Consolidated debt profile
(excluding TA Orange)
THB million
Debt profile by currency (excluding TA Orange)
75,051
16,091
73,607
65,920
62,736
16,239
57,159
11,376
52,790
13,053
3,368
12,617
11,759
25,242
35,134
51,176
49,683
44,542
41,030
32,125
23,826
2000
2001
2002
Baht loan
Foreign Debt
2003
US$ Loan
2004
2005
Yen Loan
2000
2001
2002
2003
2004
2005
68%
56%
22%
21%
22%
22%
42
Appendix 7: Consolidated revenue profile
Revenue Profile
Wireline
- Basic Wireline
- VAS
4Q03
3Q03
4Q02
QoQ
% Chg.
% Chg.
5.0%
8.9%
-3.6%
42.8%
1.2%
-3.5%
318.0%
-12.6%
-3.7%
76.4%
19.4%
3.8%
791.6%
-20.8%
8.0%
-14.8%
-26.8%
-28.3%
-0.5%
-9.4%
12.9%
-51.5%
10.4%
4,419
3,299
1,120
4,207
3,422
784
4,059
3,424
635
562
120
439
555
124
105
470
115
49
247
283
312
1,814
481
1,680
496
2,129
658
447
35
463
33
623
35
1,333
1,184
1,471
1,085
248
1,092
92
961
510
Multimedia
298
268
270
-3.0%
-3.6%
5.3%
12.6%
-0.6%
169.4%
11.2%
Internet
156
134
37
16.1%
203
242
95
116
116
96
9
10
(17)
21
6,775 7,050
- Public phone
- Fault reporting and dw
- Others
DDN
Wireless
- PCT
- Service
- Product sales
- TA Orange
- Service
- Product sales
Others
- W&W
- W7
- NB
- Others
Consolidated revenues
DDN/Internet/Broadband/Content
399
177
120
6
96
7,334
701
686
620
YoY
FY03
FY02
YTD
% Chg.
16,893
13,644
3,249
16,125
13,687
2,438
2,109
452
688
1,775
421
241
1,183
1,219
7,228
2,087
6,097
2,949
1,983
104
2,854
95
5,141
3,147
4,458
683
1,743
1,404
1,097
942
-29.3%
-30.5%
9.5%
63.4%
155.8%
-51.4%
16.4%
321.6%
471
198
138.0%
97.2%
86.5%
4.1%
-30.2%
660.5%
64.9%
52.4%
25.6%
-33.8%
361.9%
4.0%
1,203
790
292
42
79
25,783
-10.3%
-40.4%
53.9%
-10.0%
52.8%
8.2%
1,079
471
449
38
120
27,950
2.3%
13.2%
2,750
2,359
16.6%
4.8%
-0.3%
33.3%
18.8%
7.3%
185.0%
-3.0%
18.6%
8.4%
43
Appendix 8: Consolidated expense profile
Expense Profile
4Q03
3Q03
4Q02
QoQ
YoY
FY03
FY02
% Chg. % Chg.
Cost of services
5,083
5,016
4,871
- Revenue sharing
1,455
1,305
- Network operating expenses
1,069
- Depreciation & amortization
% Chg.
4.3%
19,989
17,366
15.1%
1,231
11.4% 18.1%
5,452
4,290
27.1%
1,123
1,191
-4.8% -10.2%
4,414
4,303
2.6%
2,559
2,588
2,448
-1.1%
4.5%
10,123
8,772
15.4%
341
212
522
60.6% -34.8%
1,001
1,758 -43.0%
Selling & administration expenses
1,611
1,578
1,808
2.1% -10.9%
6,469
6,138
5.4%
Consolidate operating expenses
7,034
6,807
7,201
3.3%
27,459
25,262
8.7%
Cost of sales
1.3%
YTD
-2.3%
44
Appendix 9.1: Business segment (Fixed line telephone)
Fixed line - voice ([49%] of revenue)
Public phone ([8%] of revenue)
Bt mm
3,000
Bt mm
20,000
15,000
13,032
11,346
13,687
13,277
Bt
5,767
13,644
4,776
2,000
10,000
1,158
1,000
5,000
0
5,880
4,882
6,747
8,000
2,109
6,000
1,775
1,402
4,000
643
2,000
0
1999
1,401
Subs
(000)
2000
1,525
2001
1,747
2002
2,020
2003
1,962
ARPU trends - fixed line telephone
0
1999
16,765
# of Lines
2000
20,000
2001
20,000
2002
26,000
2003
26,000
Fixed line call to mobile per line per month
Bt
750
700
633
Baht
572
542
%
685
35.1%
662 657
35%
650
615
600
31.1%
603
597
579
30%
564
557
554
535
550
28.5%
24.9%
545
531
25%
500
20%
450
15%
26.2%
184
200
183
176
177
167
21.3%
150
32.9%
196
187
179
22.8%
250
33.7%
33.3%
32.5% 33.2%
154
158
141
150
10%
400
2000
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03
* (excl. installation and international call revenues)
100
1Q01
2Q01
3Q01
4Q01
ARPU
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
% Fixed Line Call to Mobile
3Q03
45
4Q03
Appendix 9.2 : Business segment (Wireless)
Wireless ([26%] of revenue)
Bt mm
8,000
7,228
6,096
6,000
4,000
2,000
3,034
3,072
2000
393
2001
640
843
0
1999
192
,000 Subs
2002
1,941
PCT ([8%] of revenue)
Bt mm 480
4,000
470
TA Orange ([18%] of revenue)
Bt
500
440
361
3,000
400
282
3,034
200
2,949
2,086
1,000
Bt mm
2,000
,000 Subs
2000
2001
2002
2003
192
393
627
604
549
520
476
495
481
600
452
100
Revenues
300
,
1,436 1,310 1,315 ,
1 184 1 333
500
0
,000 Subs
500
400
1,000
0
1999
Bt
1,500
843
0
498
539
300
2,000
3,072
2003
2,374
132
575
767
100
0
2001 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03
13
128
500
874
1,825
1,336 1,603 1,626 1,690
ARPU
200
46
Appendix 9.3 : Business segment (Data/Internet/Broadband)
DDN ([4%] of revenue)
Data/Internet/Broadband ([10%] of revenue)
Bt mm
3,000
2,750
18,659
16,591
2,000
2,360
2,500
Bt mm
2,500
15,000
1,500
2,000
1,551
1,500
1,176
1,000
5,683
500
195
1,318
7,523
7,996
1,219
1999
503
342
2000
2001
2002
2003
Circuits
Internet ([2%] of revenue)
Bt mm
500
0
1999
2,628
2000
3,711
2001
4,564
2002
7,104
2003
7,835
ARPU
Multimedia ([4%] of revenue)
471
Bt mm
1,250
1,097
400
1,000
300
154
200
76
942
905
881
894
1999
2000
2001
2002
1,540
3,708
198
750
95
0
Subs
10,000
5,000
Revenues
100
1,183
0
1,000
Bt
20,000
500
1999
2000
2001
2002
2003
20,000
73,510
156,321
344,618
652,726
Broadband
Subs
2003
11,66147
FY03 Analyst Conference
March 10, 2004