Q303 Operating Result Conference Call November 18, 2003 Participants: Mr. Vichai Bencharongkul, Co-CEO Mr. Sigve Brekke, Co-CEO Mr. Grant Ferguson, CFO Mr. Premon Pinskul, ACFO Mr. Petter-Borre Furberg, ACFO
In Summary � Revenue growth driven by increasing usage by existing and new customers � Postpaid customer base stable � Prepaid customer base still growing but at slowing rate � More competitive market environment but maintained focus on services and revenues � Costs remain under control and margins maintained � Discussions continue on regulatory issues but as yet no changes announced Page 2 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
Q303 Services Revenues MM THB Service revenues increased 8% QoQ due to an increase in voice revenues as well as revenues from international roaming and value added services. Page 3 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
Q303 Cost of Services MM THB Cost of services increased by 10% QoQ primarily as a result of an increase in concessionary costs, production cost and sales margin of refill vouchers and network maintenance costs. Page 4 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
Q303 SG&A MM THB SG&A increased by 5% QoQ due to an increase in the change in provision for doubtful accounts, advertising and promotional expenses and general administrative expenses. Page 5 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
Q303 Operating Result MM THB EBITDA increased by 7% QoQ largely due to an increase in operating profit. Page 6 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
YoY Operating Result (3 months) MM THB EBITDA increased by 26% YoY primarily due an increase in operating profits and a decrease in provisions for doubtful accounts receivable. Page 7 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
Sources and Uses of Fund (9 months to 30 September 2003) * including changes in accounts payable for capital items. YTD CAPEX was THB 4.6 billion (approx). Revised CAPEX budget in 2003 is THB 6.6 billion. Page 8 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 30964-5, 30968
Financial Profile � Weighted average cost of fund as at 30 September 2003 was 4.9% (Q203: 5.5%) Note : (A) = Amortized repayment (B) = Bullet repayment Undrawn facilities NIB THB 1.27 bn. Page 9 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
Debt Refinancing As part of the ongoing liability management program to optimize the cost of funding realign debt maturities and provide greater risk management flexibility, DTAC has recently completed the issuance and offer for the sale of new unsecured and unsubordinated debentures as follows: A) 5-Year Tranche: THB 5.5 Billion Bullet repayment with the mix of fixed and floating rate of 3.30% and 6M THBFIX+0.95% B) 7-Year Tranche: THB 3.5 Billion Bullet payment with fixed coupon rate at 3.90% 10.00% Baht Bond 1 Baht Bond 2 9.00% Baht Bond 3 8.00% Yankee06 7.00% TH B Syndicated FE C A 6.00% FE C B 5.00% E C GD 4.00% E C D #1 3.00% P /N 5yrs Baht Bond 2.00% 7yrs Baht Bond 1.00% 2yrs B/E 0.00% - 1 2 3 4 5 6 7 8 9 Average Life Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7 Page 10
Revenue Growth Page 11 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
Customers � Net addition to postpaid subscriber base has continued to be positive for 5 consecutive months as a result of both stable level of new customers and an improving rate of churned customers. � Despite slower pace of market growth, net addition to prepaid customer base is still at sustainable level due to an improving rate of customer churn. Page 12 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
Postpaid Services What ’ s happened? Update on “ my ” package • Provides the catalyst for certain segments to refocus on postpaid market • Represents over 50% of new postpaid sales each month • More than 200k subs in customer base What ’ s New? Another innovative postpaid offering: “ Family Special ” • Up to 2 supplementary “ my ” subscriptions on any postpaid package on one single bill • Supplementary subscriptions starting with special minimum payment of 250 Baht/month bundled with 75 minutes • Aimed at strengthening relationship with more-committed customers • Focused on additional revenues rather than additional subs What ’ s next? • Continue to develop innovative packages • Focus on market and customer segmentation • Strengthen position in corporate segment by promoting corporate solutions Page 13 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
“Happy” Prepaid � Happy Dprompt was launched on May 21, 2003. Happy customers had reached 2.6 million as of end Oct 03. Innovative Branding, Promotion and Distribution: � Teamed up with Five Star Network to introduce a localized marketing campaign, using outdoor theatre as a means to capture new customers in the provinces. � Alliance with Nestle to offer customers more channels to buy refill vouchers and win prizes. � Offered customers chance to collect points for free movie ticket for any movie at any showtime (200 seats per day at Grand EGV ) � Offered special discount for tickets to “Happy with Doraemon Show 2003 ” , a grand show from Japan using technique , interactive light and sound , during 10-19 October 03. � Supported U-league football by offering special privileges to participating students, plus sponsoring a “ Miss Happy Vote ” voting in The Miss U-League competition. Page 14 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
MOU* * Actual usage outgoing minutes (voice only) Postpaid average monthly MOU per sub was stabilizing while prepaid average monthly MOU increased by 18% and resulted in an increase in prepaid ARPU. Page 15 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
ARPU Page 16 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831, 31846-7
Disclaimer Certain forward looking statements may be made in the course of the presentation. These forward- looking statements generally can be identified by use of statements that include words or phrases such as DTAC or its management “believes,” “expects,” “anticipates,” “intends,” “plans,” “foresees,” or other words or phrases of similar import. Similarly, statements that describe DTAC’s objectives, plans or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. The forward-looking statements contained in the slides are not and should not be constructed as representations of the future performance of DTAC and that such statements are an expression of the Company’s reviews based on its current view and certain assumptions including, but not limited to, prevailing economic and market conditions and currently available information. Page 17 Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 31831,31846-7
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