Transcript No Slide Title

FY 2000 Results
Analyst Meeting
March 5, 2001
Analyst Meeting : Mar. 5, 2001
1
Outline
• 2000 Financial Results & 2001 Outlook
• 2000 Operating Results & 2001 Key Initiatives
• 2000 Achievements and 2001 Strategies
• Key Strategic Issues
• Q&A
Analyst Meeting : Mar. 5, 2001
2
2000 Financial Results
&
2001 Outlook
Analyst Meeting : Mar. 5, 2001
3
Profit & Loss Statement : TA Consolidated
Unit : Million Baht
Revenues
Revenues from telephone and
other services
Revenue from product sales
Total revenue
Yr.2000
Yr.1999
%Change
18,085
14,283
27%
1,302
19,388
660
14,943
97%
30%
Cost of sales
Revenue sharing
Operating expenses
(1,119)
(2,902)
(5,840)
(374)
(2,145)
(4,978)
199%
35%
17%
EBITDA
Depre & Amor.
Share of loss in subsidiaries and
associates
Interest expenses (Net)
Tax
9,526
(7,708)
(1,128)
7,446
(6,442)
(896)
28%
20%
26%
(5,653)
(76)
(5,798)
((116)
(2%)
(34%)
NI from ongoing operations
(5,039)
(5,806)
(13%)
Analyst Meeting : Mar. 5, 2001
Page : 1 4
Profit & Loss Statement : TA Consolidated (con’t)
Unit : Million Baht
Yr.2000
Yr.1999
%Change
(5,039)
(5,806)
(13%)
1,718
(1,701)
(201%)
Gain(loss) on Foreign Exchange
Other (expense) income
Gain on sale of investment
Accounting adjustment
Gain from debt restructuring
(2,642)
((175)
2,472
685
1,378
(1,914)
(25)
238
-
38%
600%
939%
NM
NM
NET PROFIT (LOSS)
before minority interest
(3,321)
(7,507)
(56%)
13
32
(59%)
(3,308)
(7,475)
(56%
(1.73)
(3.36)
(49%)
NI from ongoing operations
Non Recurring Items
Minority Interest
NETPROFIT (LOSS)
EARNINGS PER SHARE (Baht)
Analyst Meeting : Mar. 5, 2001
Page : 2 5
Profit & Loss Statement : TA Consolidated
Unit : Million Baht
3 Mos Ended 31 December
2000
1999
%Change
4,875
3,959
23%
218
5,075
555
4,514
(60%)
12%
Cost of sales
Revenue sharing
Operating expenses
228
769
1,710
251
731
1,745
(9%)
(5%)
2%
EBITDA
Depre & Amor.
Share of loss in subsidiaries and
associates
Interest expenses (Net)
Tax
2,368
1,987
(319)
1,787
1,712
(268)
33%
16%
19%
(1,463)
(20)
(1,469)
(73)
(0.4%)
(73%)
NI from ongoing operations
(1,421)
(1,735)
(18%)
Revenues
Revenues from telephone and
other services
Revenue from product sales
Total revenue
Analyst Meeting : Mar. 5, 2001
Page : 1 6
2000 Financial Results
Revenue Diversification (Consolidated Total Revenue)
Basic Wireline-Voice
Wireless (PCT)
Handset
Usage
BB, Internet
Multimedia
Internet
Data (DDN)
VAS
Others
Total
Analyst Meeting : Mar. 5, 2001
2000
1999
13,032
3,034
1,191
1,843
976
881
95
342
2,004
304
19,388
11,346
843
535
308
981
905
76
195
1,578
428
14,943
%Change
15
260
123
498
(0.5)
(3)
25
75
27
(29)
30
7
2000 Financial Results
Consumer / Business Revenue Mix (Wireline Voice & Data)
1998
1999
2000
ConsumerBusinessConsumer Business Consumer
54% 46%
53% 47%
50%
Business
50%
Shift to higher margin customers
Analyst Meeting : Mar. 5, 2001
8
2000 Financial Results
ROIC / ARPU – Wireline + PCT
825
• Wireline ARPU up 6% over 1999
• ARPU up 17% over 1999 including PCT
• Minimal investment
800
794
690
691
761
775
Baht / Customer / Month
788
755
729
750
725
700
659
675
659
635
650
641
638
624
673
665
687
651
625
Analyst Meeting : Mar. 5, 2001
4Q
3Q
2Q
00
1Q
20
4Q
3Q
2Q
99
1Q
19
4Q
3Q
2Q
1Q
19
98
600
9
2000 Financial Results
Operating Expenses - YoY Growth (Consolidated)
FY99
FY00
Diff
%Change
13,939
16,884
4,004
30
-
685
685
-
Less Revenue Sharing
2,145
2,902
757
35
Less Depreciation
6,442
7,708
1,266
20
Less Cost of Sales
374
1,119
745
199
4,978
5,840
862
17
33.3%
30.1%
-3.2%
As Reported
Add out of period adjustment
“Core” Operating Expenses
Core Operating Expenses
as % of revenues
Growth with disciplined expense control
Analyst Meeting : Mar. 5, 2001
10
2000 Financial Results
EBITDA Margin
FY99
FY00
Diff
Revenue
14,943
19,387
4,444
30
EBITDA
7,446
9,526
2,080
28
49.8
49.1
(70 bp)
-
2.5
5.8
3.3
54.9
58.9
4.0
EBITDA Margin (%)
Cost of Sales as a % of revenues
Normalized EBITDA margin
Analyst Meeting : Mar. 5, 2001
% Change
11
2000 Financial Results
Debt / EBITDA
Times
18.0
16.0
15.8
13.8
14.0
12.0
10.4
10.6
10.0
7.9
8.0
6.0
4.0
2.0
Analyst Meeting : Mar. 5, 2001
20
00
19
99
19
98
19
97
19
96
0.0
12
2000 Financial Results
EBITDA/ Interest Coverage
Times
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
1.68
1.26
0.66
0.46
96
9
1
Analyst Meeting : Mar. 5, 2001
0.75
97
9
1
98
9
1
99
9
1
00
0
2
13
2000 Financial Results
Cash Flow from Operations
3,229
1,353
1999
Analyst Meeting : Mar. 5, 2001
(Bt Million)
2000
14
2000 Financial Results
Consolidated Debt Profile
US$
YEN
Baht
969
22,569
34,084
-
24,882
-
Repayment
(169)
(1,683)
(10,213)
(18,194)
EOY 2000
800
45,768
23,871
76,016
-17.4%
102.8%
-30.0%
-10.3%
EOY 1999
Debt restructuring-DPN
Percent Change
Equiv. Baht
84,754
9,456
Remark : FX rates as of 31 December, 2
Analyst Meeting : Mar. 5, 2001
15
2001 Financial Objectives
• Diversify revenue mix
• Leverage existing investment
• Improve financial integrity
• Reduce FX exposure
• Enhance credit profile
• Reduce cost of capital
Analyst Meeting : Mar. 5, 2001
16
2001 TA Group Outlook
1999
2000
Revenue (MB)
14,943
19,388
30
23-26
EBITDA (MB)
7,446
9,526
28
18-23
Line Billed (thousand lines)
1,401
1,525
9
>9
ARPU POTS (B/line/mo)
645
685
6
~ Flat
PCT Subs (thousand)
193
393
104
> 40
ARPU PCT (B/sub/mo)
480
470
(2)
~ Flat
CAPEX (MB)
1,320
2,039
54
35-40
Headcount (persons)
4,798
5,301
11
13-16
Analyst Meeting : Mar. 5, 2001
%g
2001 %g
17
2000 Operating Results
&
2001 Key Initiatives
Analyst Meeting : Mar. 5, 2001
18
2000 Operating Results
Strong Customer Growth
YE2000

Total Billed Lines







Consumer
Business
Data Circuits
Payphones
Internet Customers
Wireless (PCT)
CATV Customers (UBC)
Analyst Meeting : Mar. 5, 2001
Net Add
% y-o-y
Growth
1,524,959
123,847
9%
3,711
1,083
32%
20,000
73,510
3,235
53,510
19%
268%
393,000
380,956
192,440
56,358
104%
17%
1.12 million
0.41 million
19
2000 Operating Results
Wireline Sales Activity – “Core” Growth
2000 Monthly Avg. = 16,100
1999 Monthly Avg. = 14,200
1998 Monthly Avg. = 7,800
9% Increase
186,700
82% Increase
+9%
58,000
60,000
171,000
+82%
50,000
94,000
42,000
53,000 54,000
42,000
41,000
40,000
40,000
34,000
30,000
26,000 25,000
23,000
20,000
20,000
10,000
Analyst Meeting : Mar. 5, 2001
4Q
3Q
2Q
1Q
00
4Q
3Q
2Q
1Q
99
4Q
3Q
2Q
1Q
98
0
20
2000 Operating Results
Wireline - Cumulative Lines Billed
• TA’s cumulative lines billed were 1, 525 million at year-end 2000
• Since March 2000, TA has surpassed TOT in terms of market share
2 ,000
1,531
1,528
Customers (000)
1 ,500
1,503
1,293
1,460
1,294
1,401 1,437
1,525
1,469 (E)
1,010
1 ,000
683
500
0
1995
1996 1997 1998 1999
TelecomAsia
TOT
2000
Sources: TelecomASIA and Telephone Organization of Thailand
Analyst Meeting : Mar. 5, 2001
21
2000 Operating Results
Digital Data Network - Cumulative Circuits
41% y-o-y Growth
4,000
3,711
Impressive growth in data
3,515
3,500
3,295
2,936
3,000
2,628
2,500
1,836 1,913 1,901
2,000
1,924
2,030
2,097
1,968
Analyst Meeting : Mar. 5, 2001
4Q
3Q
2Q
00
1Q
4Q
3Q
2Q
99
1Q
4Q
3Q
2Q
1Q
98
1,500
22
2000 Operating Results
Digital Data Network – Cumulative Bandwidth
116% y-o-y Growth
Thousand Kbps
2,000
1,596
1,550
1,330
1,206
1,500
1,000
Impressive growth in data
500 175 282
395 359357 393 485
740
0
Analyst Meeting : Mar. 5, 2001
23
2000 Operating Results
Public Phone
Generating annual revenue of ~Bt1 billion with solid margins
300
6,000
250
5,000
200
4,000
150
3,000
100
2,000
50
1,000
Baht / Month
Total Revenue
Million Baht
0
* Month-end data
Analyst Meeting : Mar. 5, 2001
0
Total Revenue
RPL
24
2000 Operating Results
Call Completion
% of Total
Org. Calls
62
61.44
60.4
60
59.64
59.46
60.00
59.50
59.00
58.86
58.50
58
57.31
56.99
56
Q1
(Source: Network Management Center)
Q2
Q3
Actual 2000
Analyst Meeting : Mar. 5, 2001
57.24
Target 2000
Q4
Actual 1999
25
2000 Operating Results
% of Total working lines
Fault Rate
1 .2
1.15
1.21
1.12
1.10
1.1
1.07
1.05
1.02
1.02
1.00
0.99
1
0.92
0 .8
Q1
(Source: Maintenance Center)
Q2
Actual 2000
Analyst Meeting : Mar. 5, 2001
Q3
Target 2000
Q4
Actual 1999
26
2000 Operating Results
Network Outage
Line * Hour
(‘000)
4 ,000
3 ,791
3 ,050
3 ,053
2 ,500
2 ,100
2 ,000
1 ,450
1 ,150
1 ,298
1 ,229
200
800
887
247
Q1
(Source: Network Management Center)
Analyst Meeting : Mar. 5, 2001
608
2 ,500
Q2
Actual 2000
Q3
Target 2000
Q4
Actual 1999
27
2000 Operating Results
Fault Cleared within 24 Hrs.
% of
Total Faults
100
99.14
99.16
98.63
98
97.00
96
97.00
98.40
97.00
97.36
98.00
97.58
95.49
94.64
94
Q1
(Source: Maintenance Center)
Q2
Actual 2000
Analyst Meeting : Mar. 5, 2001
Q3
Target 2000
Q4
Actual 1999
28
2000 Operating Results
Customer Satisfaction
Actual
Target
84.90%
85.00%
Business and
Consumer
Combined
Actual Target
Consumer
86.30% 85.00%
Business
Actual
Target
81.70 %
85.00%
(Source: Marketing Research & Analysis)
Analyst Meeting : Mar. 5, 2001
29
2001 Key Initiatives
Customer Relations and Service Enhancement
• Social Service (included in Call Center)
• Fraud Protection Project
• TA Show Room
• Mobile Public Phone
Information Technology Development
• New Billing System
• CCSS Enhancement
• MRP (Material Requirement Planning)
• Web-Site Fault Reports, Bill Enquiry, etc.
• E - Purchase
Analyst Meeting : Mar. 5, 2001
30
2001 Key Initiatives
New services for 2001
• Prepaid PCT
• MegaPort (IP Access Service)
• Additional 6,000 public phones
• Broadband access

Analyst Meeting : Mar. 5, 2001
DSL, Cable modem
31
2001 Key Initiatives
Broadband Access- Status
DSL

DSL will cover 40% of corporate & 20% of
consumer footprint by 1Q2001

Monthly Pricing
 Corporate
5,000  Consumer
800 -
NWN03
NWN
TYB
RST
PTT
15,000 Baht
1,000 Baht
BAN
BBT

80% of addressable market/ Business

50% of addressable market/ Residential

Vendors are:
 NorTel
 Nokia
 ECI

Currently on trial offering

Market launch in April 2001

Cable Modem on trial and to be launched in
2Q2001
DNM
PKK
SIK
DNM43+15
CWT
LKS
NWW07+06
NTB
NWW
TSG
BGN
SNN
LTP108+09
LTP1
SRR PTW
MSK
TNB
LTY
PSN
SKW
SRW
KGC14
HAM
PNC
NGK
KGC
KGC12+13
ASD
CSW
NGK12+13
LTP2
PYT
ITM
BGT16+14+15 SMS
PYT11+12
BKE
RIT
BGC05+06
BGS
BGT
PMT
NGC
BGC
CYP
ONT
KTI
TKC
PWT
LKG
PKG
DKN
STD
Cable Modem
BNA24+23
BNA17
RBN
BPL06
PSP14+13+17+19
BPL
PPG
PSP22
EKC
ADSL 100RCUs (35,35,15,15)
SIEMENS Sw itching 1 June 00
SIE
Other vendor
SPK
BPL04 BBB05
BBB01+02
BBO
BGU

Analyst Meeting : Mar. 5, 2001
Covering BKK area
32
2000 Achievements
&
2001 Strategies
Analyst Meeting : Mar. 5, 2001
33
Strong Growth in Subscriber Foundation
9%
Growth
Wireline (subs in ,000)
1,525
104%
Growth
1,401
1999
Wireless (PCT subs)
393,000
192,308
2000
1999
268%
Growth
2000
Internet Customers
73,453
~20,000
1999
Data Network (Circuits)
32%
3,856
Growth
2,921
,
1999
Analyst Meeting : Mar. 5, 2001
2000
17%
Growth
CATV (Subscribers)
380,956
324,598
2000
1999
2000
34
TA Growth Performance Update
Revenue of TA Stand-alone
EBITDA of TA Stand-alone
In MB
29% Growth
19% Growth
17,027
Yr. 2000
Yr. 1999
Revenue of TA Consolidated TA
Yr. 2000
EBITDA of TA Consolidated
In MB
14,943
Yr. 1999
Analyst Meeting : Mar. 5, 2001
In MB
28% Growth
30% Growth
19,388
7,446
Yr. 2000
In MB
6,920
13,201
Yr. 1999
8,219
Yr. 1999
9,526
Yr. 2000
35
Revenue Diversification
Consolidated Total Revenue Profile
1998
1999
VAS &
Other
10%
Wireless
BB, Data
& Internet
11%
Voice
Voice
2000
6%
Data
9% BB,
& Internet
9%
1999/1998
Growth
10.4%
16%
Voice
67%
76%
80%
Wireless
VAS &
Other
VAS &
Other
10%
6%
BB, Data
& Internet
2000/1999E
Growth
Over 30%
Baht 19.39 Billion
Analyst Meeting : Mar. 5, 2001
36
TA Performance Update
Revenue Equivalent Profile by Company
2000
1999
AM
5.44%
W&W
AI
W7
AI
0.46% 0.15%
Nilubon
0.13%
4.99%
AWC
0.00%
UBC*
IMS
0.04%
W7
AM
Nilubon
4.12% 0.45% 0.15%
0.13%
W&W
5.38%
AWC
5.69%
IMS
0.03%
Other
0.05%
Other
0.11%
10.15%
UBC*
9.38%
TA
78.52%
TA
74.62%
Remark : * UBC contribution was calculated by TA’s share (40.96%) in UBC’s revenue.
Analyst Meeting : Mar. 5, 2001
37
2000 Achievement Summary
Financial Perspective
• Surpassed TOT market share in BMA in 1Q2000
• Successful PCT launch, wireless positioning
• Segmentation, cherry-pick, and MSP
• Penetration on high-bandwidth, high margin data services
• More than 9,000 public phones installed
• Ability to generate cash of 544 million Baht for loan prepayment
Customer Perspective
• Innovation on internet business with
• Position for the future with Call Center, and CRM
• Successful launch of TA-1234
• First mover of Pro-rata billing
• Wireless internet access via PCT
Business Process Perspective
• Preventive network outage reduction program
• Adoption of IAS, improving transparency/comparability
Organizational Development Perspective
• Movement towards pay-for-performance
• Completion of strategic review & integration exercise with PwC
Analyst Meeting : Mar. 5, 2001
39
TA Master Road Map
Technology
WCS
Data/Broadband
Asian
MKT Base
Intn’l
Gateway
Nation
wide
Media
Content
WCS
Wireless
BKK
LD
Resources
(incl. HR)
Internet Access
Data Center
Content
Analyst Meeting : Mar. 5, 2001
40
TA Business Structure
- 2.6M Lines
- 1.5M Lines Sold
- 20K Public Phone Boxes
- 3,860 Major Corporate Data Circuit Link
- ATM & ADSL Network Installing
- 160,000 Core Fiber Kilometers
41.0%
90.5%
65.0%
99.9%
9.8%
AM
► 381K
Households
~ 231K DSTV
~ 150K CATV
► 60 Channels
► 800K tap ports
serving ~2,000K
Home Pass HFC
Network
► Non-POTS
License
(Nation-wide)
► Cable Modem
Under Trial
Analyst Meeting : Mar. 5, 2001
51.0%
WCS
► 600 Corporate &
72,900 individual
customers
► 393K Subscribers
► 60K Waiting List
► 1000K Capacity
► ~700 Building with
Indoor Cell Sites
► ~40,000 Outdoor
Cell Sites
► 64Kbps Data
Transmission
under
implementation
► Global marine
fiber optics
cable
► NASDAQ
Listed
► Nation-wide
mobile license
► 1800 MHz
Frequency with
25 MHz
bandwidth
Potential
Integration
41
TA Strategies for 2001
GROWTH
POSITIONING
SUPPORT
Analyst Meeting : Mar. 5, 2001
42
TA Strategies for 2001
• Business Focus: NW Redundancy,Fiber-to-Buildings,Broadband ASP,Service
Bundling,Wireless PBX,Sales Agents
• Wireless Integration: WCS
GROWTH
• Capacity Utilization: Revenue per Customer Focus, Lower barrier of Entry
POSITIONING
• Broadband/Wholesales: ADSL, Cable Modem, IPAS, Capacity & Facility
Leasing
• Internet Access, E-Commerce, and Content:
,Multi-Access Portal
• New VAS: 6,000 Public Phones,PCT Pre-paid/Hi-speed, TA’s Bonus Points
SUPPORT
• Alliance: Intra-group synergistic value, Content, NW technology,
Distribution & Sales
Analyst Meeting : Mar. 5, 2001
43
TA Strategies for 2001
GROWTH
• Sustain revenue and EBITDA growth
• Disciplined cost control
• Business leader
POSITIONING
• Build trusted & strong brand
• Best value for customers
SUPPORT
• Provision for future opportunities: 3G, International Gateway, etc.
• Manage through liberalization process that satisfies most stakeholders
Analyst Meeting : Mar. 5, 2001
44
TA Strategies for 2001
GROWTH
POSITIONING
• Enhance good corporate governance & best practices
• Strategic integration & competency enhancement
• Strengthen financial position
• Build strong culture 3-C
Analyst Meeting : Mar. 5, 2001
SUPPORT
45
Evolution of TA
Business Environment
Strategic Focus
2001
roadband & Cellular (WCS*)
Toward Business&Wireless Lea
Wireless (PCT)
2000Growth Capitalization
1999
Restructuring
Internet Service Provider (AI)
UBC Consolidation and Cost Cuttin
Multimedia Services (UTV & AM)
1998
Data (DDN) & Payphone Services
1997
POTS
Telephone Lines & VAS
Network Installation Implementatio
1991-96
* Potential Integration not yet a part of TA Group
Analyst Meeting : Mar. 5, 2001
47
TA Strategies for 2001 and beyond
A Leading BMA Telco
Market
Liberalization
A Nationwide Business&Wireless Leader
• Position for opportunities after liberalization
• Enhance best practices & good governance
Analyst Meeting : Mar. 5, 2001
48
Key Strategic Issues
• WCS Acquisition
• Concession Conversion
Analyst Meeting : Mar. 5, 2001
49
WCS Acquisition
Analyst Meeting : Mar. 5, 2001
50
WCS: Tentative Time Frame
Feb 2001
 Appointment of a
 Board of Directors Meeting to approve the
Sub-Committee
 First meeting with key
transaction and call shareholders meeting
 Second meeting with a
 Shareholders
broader group of
Meeting to approve
investors /
the transaction
Research analyst
meeting
shareholder accounts
 Signing of a
Memorandum of
Strategic Alliance
Dec 2000
 Appointing a financial
advisor and a legal
counselor to negotiate with
CP Group
An engineering team is to
assess and verify the
synergy / operational
alliance plan
t
t + 35 days
 Seeking an approval
from the Creditors
Execution
 Disclosure of Board of
Directors Resolution to the SET
 The Sub-Committee
recommends approval to
non-CP Directors
 The Sub-Committee to
make counter-offer and
negotiate with CP
Analyst Meeting : Mar. 5, 2001
51
Concession Conversion
Analyst Meeting : Mar. 5, 2001
52
Concession Conversion
• Concession Conversion Subcommittee was dissolved in Feb 01
• Continuing Conversion Effort by the New Government
• NTC, currently being selected by Senate, is the Key
Analyst Meeting : Mar. 5, 2001
53
“Safe Harbor” Statement
This presentation contains statements about expected future
events and financial results that are forward-looking and subject to
risks and uncertainties. Undue reliance should therefore not be
placed on said forward-looking statements, which speak only as of
the date hereof. Factors which may affect future results of the
Company are discussed in our recent filings with the Securities
a n d
Analyst Meeting : Mar. 5, 2001
E x c h a n g e
C o m m i s s i o n.
54
FY 2000 Results
Analyst Meeting
March 5, 2001
Analyst Meeting : Mar. 5, 2001
55