Advanced Info Service Public Co., Ltd. · SET:ADVANC
Advanced Info Service Public — Advanced Info Service — Non-Deal Roadshow (March 2024)
38 slides from Advanced Info Service Public's roadshow presentation, Mar 4, 2024
Slide 1: FY23 Roadshow Presentation
FY23 ROADSHOW PRESENTATION Advanced Info Service Plc. DISCLAIMER: Please be informed that this meeting is being recorded. By participating in this meeting, you have allowed AIS to collect, use, or disclose any personal data shared during this meeting by any means. Please do not copy, edit, or modify
Slide 2: FY23 driven by efficiency and value-focus
FY23 driven by efficiency and value-focus Core Service Revenue (THB Bn) EBITDA (THB Bn) Net Profit (THB Bn) 4.2% YoY 4.1% YoY 12% YoY 138.6 93.4 29.1 2.2 1.0 133.0 89.7 26.0 136.4 92.4 FY22 FY23 FY22 FY23 FY22 FY23 +3-5% +2.5% Mid-single +3.0% Digit DPS Bt 7.69 DPS Bt 8.16 Guidance YoY YoY Excluding
Slide 3: Our Growth Strategy 2024
OUR GROWTH STRATEGY 2024 Core Strengths, New Digital Services, and New Capabilities MORE VALUE SEGMENT FOCUS NEW SERVICES ENHANCED EXPERIENCE & EFFICIENCY • 5G Upgrades • High Value Customer • Smart home • myAIS channel • Upsell/Cross-sell • Family • Cloud & Data Center • Cost Efficiency • FMC • SME
Slide 4: Growing with Quality and Value
MOBILE SERVICE 5G MONETIZATION 2024 Aspiration Living network and target segmentation in Teen, Family & R-SME 95% 5G Population Coverage 13mn GROWING Migrate 4G to 5G WITH QUALITY 5G Subscribers Targeted value-enhancement including handsets for better ARPU Uplift ARPU with AND VALUE UPLIFTING segmen
Slide 5: Growing in Scale with Innovative Broadband Service
BROADBAND SERVICE QUALITY ACQUISITION Growth in underpenetrated 2024 Aspiration areas with wider footprint SEGMENTATION WITH 5.0mn INNOVATIVE PRODUCTS Family, SMEs, and Corporates AIS 3BB Fibre3 subscribers GROWING IN to drive higher ARPU SCALE WITH NEW DIGITAL SERVICES i.e. IP Camera, Smart home Ma
Slide 6: Growing with Wider Product Portfolio and Enterprise Services
ENTERPRISE SERVICES GROW NETWORK & DIGITAL INFRA 2024 Aspiration Connectivity related product of EDS, Network, Cloud and Data >10% Growth Center Enterprise Non-Mobile Revenue GROWING WITH ACCELERATE PLATFORM WIDER PRODUCT CAPABILITIES IoT and 5G Smart Solution on PORTFOLIO AND DIGITAL AIS Paragon an
Slide 7: Financial Priorities
FINANCIAL PRIORITIES PROFITABLE REVENUE GROWTH OPTIMIZE CAPEX DELIVER SUSTAINABLE RETURN WITH 3BB SYNERGY REALIZATION EFFICIENCY SUSTAIN INVESTMENT GRADE RATING DELIVERING STAKEHOLDERS VALUES 7
Slide 8: 2024 Guidance
2024 GUIDANCE CORE SERVICE REVENUE +2.5 % Around 13-15% CONTINUE GAIN ON 133bn 135bn Growth PROFITABLE REVENUE FY22 FY23 FY24F EBITDA +3.0%* Around 14-16% OPERATIONAL EFFICIENCY Growth 90bn 90bn AND COST OPTIMIZATION FY22 FY23 FY24F CAPEX 41bn 32bn Approx. 25-26bn MAINTAIN NETWORK FY22 FY23 FY24F LE
Slide 9: Driving Long-term Sustainable Business Operation
Driving Long-term Sustainable Business Operation 9
Slide 10: 2023 Sustainability Highlights
2023 SUSTAINABILITY HIGHLIGHTS DRIVE DIGITAL ECONOMY PROMOTE DIGITAL INCLUSION ACT ON CLIMATE 4.1% of revenue generated from Improving the socio-economic Reducing GHG emission new digital service Condition 2.57 M People by 30,327 tCO2e CSA STAR Certification in Expanded 5G coverage Installed and use
Slide 11: Thriving in a Greener and Inclusive Digital World
THRIVING IN A GREENER AND INCLUSIVE DIGITAL WORLD Drive Digital Economy Promote Digital Inclusion Act on Climate Enable people and businesses to grow Build inclusive and responsible digital Shape a greener future of life for in the digital economy access in our products & services consumers and soci
Slide 12: Drive Digital Economy
1 Drive Digital Economy: Enable people and businesses to grow in the digital economy Digital innovation Data Privacy & Cybersecurity Human Capital Development Drive digital services for both Maintain resiliency for data security Nurture AIS human capital to support consumers & enterprises and privac
Slide 13: Promote Digital Inclusion
2 Promote Digital Inclusion: Build inclusive and responsible digital access Digital wellness Social inclusion Empower digital citizenship by providing Enriching Thai people’s knowledge of digital solutions and tools total 2.57 million people in 2023 in total 0.51 million people Hotline Teachers & Ge
Slide 14: Act on Climate
3 Act on climate: shape a greener future of life for consumers and society Climate actions Waste Management Manage our own network, operation and supply chain Promote proper waste disposal to be light to the environment Energy Renewable Smart Efficiency energy Solutions 13,951 16,376 tCO2e tCO2e Was
Slide 15: Affirmation of our determination towards sustainable business
J 5) An affirmation of our determination towards sustainable business Global Level National Level Disclosure Standards & MSCI 36 RATINGS ccna bf SET In 2023, AIS received a rating of AA FISE 4 Good Index Series 2023 in the MSCI ESG Ratings Assessment 9” Consecutive Years £96 rating of AAA from Globa
Slide 16: 3BB Integration
AIS SBB INTEGRATION (a> fm ars
Slide 17: AIS 3BB Fibre3 Growth driven from scale and synergy
AIS 3BB FIBRE3 Growth driven from scale and synergy Completion of the acquisition on 15 Nov 2023 and started consolidation from 16 Nov 2023 onwards Acquisition of shares in TTTBB Leveraging to gain synergies Purchasing price THB 16,500 million Professionals Acquiring 19% of shares installation & mai
Slide 18: Synergy Realization & Integration
SYNERGY REALIZATION & INTEGRATION GROSS SYNERGY vs. BASE LINE FY22 INTEGRATION UPDATE Product & Channels & People & Brands Privileges Operations CAPEX • Combined extensive • Pilot Colocation • Combined Bt 1 – 2 bn p.a. innovative products Management Team & contents & Workforce OPEX 2024 Bt 400 - 800
Slide 19: Normalised Profit and Future Items
NORMALISED PROFIT AND FUTURE ITEMS + + + + + + + - + - 19
Slide 20: FY24 FY25 FY26
• • • • FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 20
Slide 21: FY23 Performance Overview
FY23 PERFORMANCE OVERVIEW 21
Slide 22: FY23 Growth driven by profit and value focus, enhanced by acquisition
FY23 Growth driven by profit and value focus, enhanced by acquisition Solid growth in core Healthy operating Modest economic and businesses from quality performance while tourism recovery amid commitment and continue generate geopolitical uncertainty TTTBB acquisition strong cashflow Mobile rebounde
Slide 23: AIS: Towards becoming Cognitive Tech-Co
AIS: Towards becoming Cognitive Tech-Co Unleash Excellence in Digital Customer Experience Enterprise Mobile Fixed Broadband Digital Services non-mobile Business 85% 10% 4.2% to core service to core service to core service revenue revenue revenue AIS 5G Cloud Game service Offering higher value Focusi
Slide 24: FY23: Top-line expansion contributed to strong profit delivery
FY23: Top-line expansion contributed to strong profit delivery Core service revenue (Bt mn) EBITDA (Bt mn) (%YoY) (%YoY) Excl. 3BB 1.2% 35% 8.7% 4.2% Excl. 3BB 1.8% -1.2% 3.0% 4.1% 2.5% 3.0% YoY YoY Excl. 3BB Excl. 3BB Excl. 3BB Excl. 3BB Excl. 3BB 0.7% YoY -1.7% YoY -0.8% YoY 17% YoY 4.6% YoY NPAT
Slide 25: 4Q23: Solid operating results from business acquisition
4Q23: Solid operating results from business acquisition Core service revenue (Bt mn) EBITDA (Bt mn) NPAT (Bt mn) 5.4% -1.7% 37% 4.6% 4.6% 4.8% 33% -4.9% (%YoY) 1.8% 94% 14% 9.5% (%YoY) (%YoY) Excl. 3BB -1.1% YoY Excl. 3BB Excl. 3BB Excl. 3BB Excl. 3BB 21% YoY 1.0% YoY -3.6% YoY 22% YoY Core service
Slide 26: Mobile: Rebounded from value uplift and focused segmentation
Mobile: Rebounded from value uplift and focused segmentation Mobile revenue (Bt bn) Total subscriber (mn) Mobile ARPU (Bt/sub/month) 1.2% YoY 455 449 448 446 449 1.8% YoY 116.7 118.1 46.0 46.1 45.3 44.4 44.6 2.6% QoQ 30.1 33.5 33.5 32.6 213 210 213 216 223 4.7% YoY 31.8 31.9 29.5 29.3 3.4% QoQ Blend
Slide 27: Maintaining superior network quality with 9.2mn 5G subscribers
Maintaining superior network quality with 9.2mn subscriber 5G network coverage Driving 5G adoption with quality >99% 9.2mn BKK 4Q23 Subscribers 77 >96% provinces EEC 10-15% Nearly 90% 5G ARPU uplift Improved value through 5G Nationwide Population adoption coverage 27
Slide 28: Home Broadband: Expanded growth with strategic acquisition
Home Broadband: Expanded growth with strategic acquisition Revenue growth from both organic and acquisition Continuous subscriber growth driven by high-quality subs 35% YoY 4.7 mn 94% 2.3 mn 2.4 mn 13,621 2.2 mn 2.3 mn 13% 11% 15% 19% 1,893 2.36mn* 5,033 10,064 1,893 99k 2,857 3,021 Excl. 3BB 83k 2,
Slide 29: Enterprise non-mobile: High-margin focused strategy led to quality growth
Enterprise non-mobile: High-margin focused strategy led to quality growth Growth momentum thrived on digitization demand Product offerings to deepening relationship with clients 26% 10% 21% 7.1% 2.2% 20% 12% Core Connectivity Service 5,251 5,791 1,520 1,602 1,429 1,330 1,339 Excl. 3BB Excl. 3BB 5,67
Slide 30: Financial Highlights
Financial Highlights Bt mn 4Q22 3Q23 4Q23 %YoY %QoQ FY22 FY23 %YoY Mobile revenue 29,524 29,311 30,065 1.8% 2.6% 116,696 118,130 1.2% FBB revenue 2,598 3,021 5,033 94% 66.6% 10,064 13,621 35% Other revenues 1,718 1,748 1,957 14% 12% 6,274 6,819 8.7% Core service revenue 33,840 34,080 37,055 9.5% 8.7
Slide 31: 4Q23 & FY23 Revenue Breakdown
4Q23 & FY23 Revenue Breakdown Excl. 3BB Mobile revenue Fixed broadband revenue Enterprise and Other revenues (Bt bn) (Bt bn) (Bt (Bt bn) bn) 30.1 5.0 2.0 1.8% YoY 94% YoY 14% YoY 29.5 3.0 67% QoQ 1.7 1.7 12% QoQ 29.3 2.6% QoQ 2.6 Excl. 3BB Excl. 3BB 21% YoY -1.1% YoY 3.9% QoQ -2.8% QoQ 4Q22 3Q23 4Q2
Slide 32: 4Q23 & FY23 Revenue Breakdown
4Q23 & FY23 Revenue Breakdown Excl. 3BB IC and NT Partnership Net sale & margin Total Revenue (Bt bn) (Bt bn) % Sale margin (Bt bn) 51.3 3.4 3.4 -0.1% YoY 11.5 -5.2% YoY 5.4% YoY 10.9 48.7 1.7% QoQ 8.7 26% QoQ 11% QoQ 46.1 3.3 1.8% 2.3% 1.0% YoY 1.2% 6.7% QoQ 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 4Q22 3Q23
Slide 33: 4Q23 & FY23 Cost Breakdown
4Q23 & FY23 Cost Breakdown Regulatory Depreciation & Amortization Network OPEX and NT partnership (Bt bn) (Bt bn) 13.4 (Bt bn) 5.6 8.4% YoY 12.7 4.9% YoY 5.3 5.4 5.3% YoY 1.5 12.5 7.0% QoQ 7.0% QoQ 3.0% QoQ 1.4 1.4 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 • 8.4% YoY and 7.0% QoQ growth related w
Slide 34: 4Q23 & FY23 Cost Breakdown
4Q23 & FY23 Cost Breakdown Marketing expense Admin & Others Finance cost (Bt bn) (Bt bn) 5.4 (Bt bn) 6.8% YoY 49% YoY 2.2 70% YoY 3.6 3.8 1.9 2.0 78% QoQ 41% QoQ 61% QoQ 1.3 1.4 1.1 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 • Increased 6.8% YoY from consolidating of TTTBB • Increased 49% YoY and
Slide 35: Healthy balance sheet and cash flow to support investment
Healthy balance sheet and cash flow to support investment Balance Sheet FY23 Cash Flow (Bt bn) (Bt bn) Cash increase Cash decrease Operating Investing Financing Net cash others A/P spectrum license 94.6 right of use payable 53.6 57 38 64 5.7 101 -7.0 -13.9 -27.2 -4.3 -15.5 -13.2 -24.5 -37.1 Assets L
Slide 36: Potential Estimate on Balance Sheet
POTENTIAL ESTIMATE ON BALANCE SHEET AIS Balance Sheet as of Sep’23 Potential Balance Sheet* after 3BB Consolidation 12 53 323 22 33 66 239 282 148 323 239 91 41 36
Slide 37: Towards Cognitive Tech-Co
TOWARDS COGNITIVE TECH-CO 37
Slide 38: IR website and contact details
IR website: https://investor.ais.co.th Email: [email protected] Tel: +662 029 5000 Sustainability website: https://sustainability.ais.co.th Email: [email protected] Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to var
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