Advanced Info Service Public Co., Ltd. · SET:ADVANC
Advanced Info Service Public — Q1 2024 Earnings Presentation
43 slides from Advanced Info Service Public's earnings presentation, Jun 25, 2024
Slide 1: 1Q24 Investor Presentation
1Q24 Investor Presentation Advance Info Service Plc. 1
Slide 2: 1Q24 Performance Overview
AIS 1Q24 PERFORMANCE OVERVIEW
Slide 3: 1Q24 Growth benefit from value-based strategy and business expansion
1Q24 Growth benefit from value-based strategy and business expansion Tourists and government Core businesses Solid performance subsidies boosted Thai continued its growth from profitability focus economy amid structural supported by TTTBB to deliver quality and challenges consolidation efficient ope
Slide 4: 1Q24 driven by efficiency and value-focus
1Q24 driven by efficiency and value-focus Core Service Revenue (THB Bn) EBITDA (THB Bn) Net Profit (THB Bn) 39.4 27.8 8.5 33.5 22.6 6.8 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 +13-15% +14-16% 25% Deliver profit +18% YoY +23% YoY Guidance Guidance YoY growth Average EBITDA Margin Net Debt to EBITDA* FCF Yield
Slide 5: 1Q24: Quality revenue base expansion led to strong profit delivery
1Q24: Quality revenue base expansion led to strong profit delivery Core service revenue (Bt mn) EBITDA (Bt mn) NPAT (Bt mn) (%YoY) 3.7% 163% 27% 18% (%YoY) 14% 6.1% 4.3% 23% (%YoY) 23% 16% 54% 25% Core service revenue (Bt bn) EBITDA (Bt bn) NPAT (Bt mn) 18% YoY 23% YoY 25% YoY 39.4 6.4% QoQ 27.8 16%
Slide 6: AIS: Towards becoming Cognitive Tech-Co
AIS: Towards becoming Cognitive Tech-Co Unleash Excellence in Digital Customer Experience Enterprise Mobile Fixed Broadband Digital Services รเพีบั ยฟรีกล่ Mbps AIS งเดือน Fibre ... อ ง790 บาท เน็ ตแรง 30/10 non-mobile Business 77% 18% 4.1% to core service to core service to core service revenue rev
Slide 7: Mobile: ARPU revival continued from value uplift and tourists
Mobile: ARPU revival continued from value uplift and tourists Mobile revenue (Bt bn) Total subscriber (mn) Mobile ARPU (Bt/sub/month) 3.7% YoY 0.9% QoQ 449 448 446 449 448 46.1 45.3 44.4 44.6 45.0 30.1 30.3 224 6.5% YoY 33.5 32.6 32.3 210 213 216 223 29.5 31.8 31.9 0.2% QoQ 29.3 29.3 Blended 120 123
Slide 8: Maintaining superior network quality with 9.9 mn of 5G subscriber
Maintaining superior network quality with 9.9 mn of 5G subscriber 5G network coverage Driving 5G adoption with quality >99% 9.9 mn BKK 5G Subscribers In 1Q24 77 >96% provinces EEC 10-15% Over 90% 5G ARPU uplift Improved value through 5G Nationwide Population adoption coverage 8
Slide 9: Home Broadband: Solid expansion boosted by TTTBB consolidation
Home Broadband: Solid expansion boosted by TTTBB consolidation Revenue scaled up from sub growth and TTTBB contribution Subscriber expansion continued with widened footprint 163% 4.74 4.82 94% 2.27 2.33 2.38 11% 15% 19% 7,118 2.36mn* 5,033 2,710 2,857 3,021 99k 61k 52k 73k 1Q23 2Q23 3Q23 4Q23 1Q24 1
Slide 10: Driving Synergies through optimization and efficiency
Driving Synergies through optimization and efficiency GROSS SYNERGY vs. BASE LINE FY22 2024 SYNERGY REALIZATION Total Integration Cost (OPEX & CAPEX) Bt 500-700 mn within FY25 CAPEX Bt 1 – 2 bn p.a. End-23 1Q24 End-24 Mid 2025 OPEX Bt 400 - 800 mn p.a. Revenue Gross synergy: Bt 750mn Bt 150-300 mn p
Slide 11: Enterprise non-mobile: Solid demand for connectivity
Enterprise non-mobile: Solid demand for connectivity Growth momentum from demand and TTTBB contribution Enterprise key strategic products 20% 12% 20% Core Connectivity Service 7.1% 2.2% 1,520 1,602 1,602 1,330 1,339 Airtime FBB, Link EDS Cloud, Datacenter 1Q23 2Q23 3Q23 4Q23 1Q24 Platform and Soluti
Slide 12: FY24 Guidance: positive outlook with organic and inorganic base
FY24 Guidance: positive outlook with organic and inorganic base Guidance Rationale • Inorganic growth from TTTBB acquisition • Organic performance driven by value focus offerings and stabilized competition outlook • Mobile: sustain network quality, personalization and uplift value Core service Aroun
Slide 13: Key Updates in the new growth areas
Key Updates in the new growth areas 13
Slide 14: Company Background
Classification: Internal Company Background
Slide 15: 34 Years as a Leading Company in Thai Telecom Industry
Classification: Internal 34 Years as a Leading Company in Thai Telecom Industry Past Telecom Service Provider New Growth AIS, the leader of Thailand Opportunities Telecom company with a strong Capabilities to scale up and foundation and well-established expand beyond telco excellence service quality
Slide 16: AIS: Towards becoming Cognitive Tech-Co
Classification: Internal AIS: Towards becoming Cognitive Tech-Co Unleash Excellence in Digital Customer Experience Enterprise Mobile Fixed Broadband Digital Services รเพีบั ยฟรีกล่ Mbps AIS งเดือน Fibre ... อ ง790 บาท เน็ ตแรง 30/10 non-mobile Business 77% 18% 4.1% to core service to core service to
Slide 17: Consistent profit generated with high dividends paid
Classification: Internal Consistent profit generated with high dividends paid 200% 186% Dividend 99% 115% 114% 114% 133% 93% 100% 99% 99% 98% 85% 88% 88% 65% 69% 70% 71% 70% 75% payout ratio (%) EPS 4.1 4.8 6.3 6.3 6.3 6.3 11 13 8.4 11 12 12 13 10 7.1 7.1 7.3 6.9 7.7 7.7 8.6 DPS 2003 2007 2011 2015
Slide 18: Mobile Industry Background
Classification: Internal Mobile Industry Background Mobile industry subscribers Mobile industry revenue as of 1Q24 as of 1Q24 Competitor Competitor 96.1 47% 62.8 48% 53% mn 52% bn AIS Subscribers Mixed (Postpaid : Prepaid) : 30% : 70% AIS Revenue Mixed (Postpaid : Prepaid) : 63% : 37% Mobile Thailan
Slide 19: Fixed broadband industry Background
Classification: Internal Fixed broadband industry Background FBB industry subscribers market share FBB industry revenue market share as of 1Q24 3 Major Operator’s market share as of 1Q24 18% 14% Competitor Competitor 10.4 46% 15.6 46% mn bn 36% 40% FBB Thailand penetration rate FBB industry ARPU as
Slide 20: Superior return with efficient capital management
Classification: Internal Superior return with efficient capital management EV/EBITDA Dividend Yield FCF Yield ROIC Profitability Ratio ‘FY23 • High cashflow generated 7.5 x 4.0 % 3.1 % 21 % • Consistent dividend * * paid ASEAN Peers: 7.1X ASEAN Peers: 3.5 % ASEAN Peers: 6.2%* ASEAN Peers: 9.2% * Net
Slide 21: IR contacts and forward-looking statements
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
Slide 22: Strategic Direction
AIS STRATEGIC DIRECTION
Slide 23: Ecosystem Economy
People & Sustainability ECOSYSTEM Digital Infrastructure Cross Industry ECONOMY Collaboration 23
Slide 24: Towards Cognitive Tech-Co
TOWARDS COGNITIVE TECH-CO 24
Slide 25: 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 26: Mobile Service Growing with Quality
MOBILE SERVICE 5G MONETIZATION 2024 Aspiration Living network and target segmentation in Teen, Family & R-SME 95% 5G Population Coverage Migrate 4G to 5G 13mn GROWING WITH 5G Subscribers Targeted value-enhancement QUALITY including handsets for better ARPU AND Uplift ARPU with segmented offerings VA
Slide 27: Broadband Service Growing in Scale with Quality Acquisition
BROADBAND SERVICE QUALITY ACQUISITION Growth in underpenetrated 2024 Aspiration areas with wider footprint SEGMENTATION WITH INNOVATIVE PRODUCTS 5.0mn Family, SMEs, and Corporates to drive higher ARPU AIS 3BB Fibre3 subscribers GROWING IN SCALE WITH NEW DIGITAL SERVICES i.e. IP Camera, Smart home Ma
Slide 28: Enterprise Services Growing with Wider Product Portfolio
ENTERPRISE SERVICES GROW NETWORK & DIGITAL INFRA 2024 Aspiration Connectivity related product of EDS, Network, Cloud and Data >10% Growth Enterprise GROWING Center Non-Mobile Revenue ACCELERATE PLATFORM WITH WIDER CAPABILITIES IoT and 5G Smart Solution on PRODUCT AIS Paragon and CPaaS Enable digital
Slide 29: Financial Priorities
FINANCIAL PRIORITIES PROFITABLE REVENUE GROWTH OPTIMIZE CAPEX DELIVER SUSTAINABLE RETURN WITH 3BB SYNERGY REALIZATION EFFICIENCY SUSTAIN INVESTMENT GRADE RATING DELIVERING STAKEHOLDERS VALUES 29
Slide 30: 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 31: Driving Long-term Sustainable Business Operation
Driving Long-term Sustainable Business Operation 31
Slide 32: 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 33: Sustainability Highlight
Sustainability Highlight Build Cyber-Savvy citizens by “Aunjai Cyber” e-learning collaboration with MHDHS Equip MHDHS’ staff with essential digital skills and cybersecurity knowledge Share knowledge on Personal Data Protection Act (PDPA) for online staff Expand Aunjai Cyber Syllbus Practice to the T
Slide 34: Drive Digital Economy: Enable people and businesses to grow
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 35: 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 36: Act on climate: Shape a greener future
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 37: An affirmation of our determination towards sustainable business
J 5) An affirmation of our determination towards sustainable business Global Level MSCI 1) SG RATINGS In 2028, AIS received a rating of AA in the MSC! ESG Ratings Assessment Bow Jones Sustainability Indices Dow Jones Sustainabiity Indices 2023, member of DJS! World Top 5% In 2023,AIS received an ESG
Slide 38: Appendix
Appendix 38
Slide 39: Financial Highlights
Financial Highlights Bt mn 1Q23 4Q23 1Q24 %YoY %QoQ Mobile revenue 29,258 30,065 30,339 3.7% 0.9% FBB revenue 2,710 5,033 7,118 163% 41% Other revenues 1,564 1,957 1,980 27% 1.2% Core service revenue 33,531 37,055 39,437 18% 6.4% IC and NT partnership 3,255 3,371 3,366 3.4% -0.1% Service revenue 36,
Slide 40: 1Q24 Revenue Breakdown
1Q24 Revenue Breakdown Mobile Revenue Fixed Broadband Revenue Enterprise and Other Revenues (Bt bn) (Bt bn) (Bt (Bt bn) bn) 30.3 7.1 163% YoY 27% YoY 30.1 3.7% YoY 2.0 2.0 0.9% QoQ 5.0 41% QoQ 1.6 1.2% QoQ 29.3 2.7 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 • ARPU uplift through value-based packag
Slide 41: 1Q24 Cost and Expense Breakdown
1Q24 Cost and Expense Breakdown Regulatory Depreciation & Amortization Network OPEX and NT partnership (Bt bn) (Bt bn) 14.8 (Bt bn) 5.9 1.6 13% YoY 16% YoY 5.6 12% YoY 1.5 13.3 5.3 4.8% QoQ 12.8 11% QoQ 6.0% QoQ 1.4 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 • Stayed at 4% of core service revenue
Slide 42: Healthy balance sheet and cash flow to support investment
Healthy balance sheet and cash flow to support investment Balance Sheet 3M24 Cash Flow (Bt bn) (Bt bn) Cash increase Cash decrease Operating Investing Financing Net cash others A/P spectrum license 30.5 right of use payable 8.5 58 38 0.2 63 99 -0.6 -7.1 -1.8 -1.6 -4.5 -6.8 Assets Liabilities 120 spe
Slide 43: IR contacts and forward-looking statements
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
Advanced Info Service Public Company Limited (AIS) — Q1 2024 Earnings Presentation on 6ix