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Jasmine International Pcl. (JAS) Y2013 Performance Review
Financial Review
2013 Operation Results (Consolidated)
In 2013, the sales and services income was recorded at Bt 11,123 mn, increasing by 7% YoY, compared to that of Bt 10,369 mn in 2012. Most was from the contribution of Triple T Broadband Public Company Limited (“TTTBB”) and Triple T Internet Company Limited (“TTTI”). In 4Q2013, the sales and services income of the Company and its subsidiaries was Bt 2,940 mn, increasing by 4% QoQ, compared to that of Bt 2,820 mn in 3Q2013. The increase was mainly due to the contribution of Broadband business. For the year 2013, 86% of the sales and service contribution was from Broadband business, 11% from Telecom Network & Service Provider business, 2% from System Integration business and another 1% from other businesses.
Sales and services income from Broadband business continued growing
JAS Update o 3BB has extended the promotion period for the package of broadband Internet service based on FTTx
technology, maximum speed 1,000 Mbps, starting at 30Mbps at Bt 1,200 / month (The previous price : Bt 2,490) to 30 June 2014.
o 11 Feb 2014, the Board of Directors’ meeting of JAS approved paying dividend for the year 2013 to the
shareholders of ordinary share, totaling 7,137.39mn shares at Bt 0.25 per share.
Broadband 86%
Telecom Network &
Service Provider
11%
System Integration
2% Others 1%
2013 Sales and Services Contribution
11,123 MB
Broadband 76%
Telecom Network &
Service Provider
12%
System Integration
11%
Others 1%
2012 Sales and Services Contribution
10,369MB
Jasmine International Pcl. 1 13 February 2014
The total revenue as recorded in the 2013 financial statements was Bt 11,260 mn, increasing by 7% when compared to that of Bt 10,501 mn in 2012. About 86% of the total revenue of 2013 was from TTTBB and TTTI, which including VAT was Bt 10,296 mn. When excluding VAT, the revenue of TTTBB and TTTI was Bt 9,623 mn, increasing by 19% when compared to that of Bt 8,068 mn in 2012.
As at the end of 4Q2013, 3BB had a total of 1,424k subscribers. Of this number, 351k subscribers were in Bangkok and perimeter; whereas, 1,073k subscribers were in the provincial areas. In 4Q2013, there were about 60k additional subscribers and ARPU average was at about Bt 634 /subscriber/month.
794 866 922 989 1,028 1,067 1,112 1,150 1,213 1,256 1,303 1,363
546
794
1,028 1,213
72 57
67 39 39
46 38
62 43
47 60
60
247
235
185
211
866 922
989 1,028 1,067 1,112 1,150 1,213 1,256 1,303
1,363 1,423
794
1,028
1,213
1,423
1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2010 2011 2012 2013
Broadband - Subscribers('000)
Previous period subscribers Net adds
Jasmine International Pcl. 2 13 February 2014
As shown in the financial statements, the total operating expenses for the year 2013 were Bt 7,266 mn, decreasing by 3% from Bt 7,510 mn in 2012. Details are as follows:- The cost of sales and services in 2013 was Bt 4,475 mn, compared to that of Bt 4,686 mn in 2012, decreasing by 5% due to good cost management and the decrease in cost of sales and services of System Integration business. In 4Q2013, the cost of sales and services was Bt 1,217 mn, increasing by 6% compared to that of Bt 1,153 mn in 3Q2013 but decreasing by 17% when compared to that of Bt 1,460 mn in 4Q2012 due to the decrease in the cost of System Integration business as its income decreased. However, in comparison to the sales and services income, the gross margin was recorded as increasing from 55% in 2012 to 60% in 2013. The sales and services expenses (including administration expenses) for the year 2013 were Bt 2,563 mn, compared to that of Bt 2,372 mn in 2012. The sales and services expenses in 4Q2013 were Bt 656 mn, compared to that of Bt 650 mn in 3Q2013 when compared to that of Bt 559 mn in 4Q2012. Such increase was mainly because of employee expenses, office expenses, and depreciation whereas marketing expenses decreased.
Cost of sales and services declined
Sales and services expenses
Other Expenses
In 2013, the company and its subsidiaries set up an allowance for doubtful debts of TTTI of Bt 50 mn and an allowance for doubtful debts of the subsidiaries of Bt 7 mn. Moreover, the company recorded bad debt and impairment losses on assets of the subsidiaries of Bt 165 mn.
Operating expenses declined by 3% from 2012
Jasmine International Pcl. 3 13 February 2014
Financial expenses declined by 23%
In 2013, the financial expenses of the Company and its subsidiaries were Bt 312 mn, decreasing by 23% compared to that of Bt 404 mn in 2012. This decrease was due to loan repayment and payment for accounts payable for equipment of the Company and its subsidiaries. In 4Q2013, the financial expenses of the Company and its subsidiaries were Bt 75 mn, decreasing by 4% compared to that of Bt 79 mn in 3Q2013 and decreasing by 21% when compared to that of Bt 95 mn in 4Q2012. In 2013, the operating profit of the Company and its subsidiaries was Bt 3,301 mn, increasing by 31% compared to that of Bt 2,517 mn in 2012. This amount excludes the allowance from unrealized FX loss of the subsidiaries of Bt 7 mn, the allowance for doubtful debts of TTTI of Bt 50 mn, the allowance for doubtful debts of the subsidiaries of Bt 7 mn, bad debt and impairment losses on assets of the subsidiaries of Bt 165 mn and deferred tax of Bt 70 mn. As shown in the 2013 consolidated financial statements, the Company and its subsidiaries recorded a net profit of Bt 3,002 mn, compared to Bt 2,028 mn in 2012, increasing by 48%. In 4Q2013, the operating profit (including FX gains (losses) and other expenses) of the Company and its subsidiaries was Bt 914 mn, increasing by 13% compared to Bt 810 mn in 3Q2013 and increasing by 3% compared to Bt 887 mn in 4Q2012. EBITDA for the year 2013 was Bt 6,118 mn, increasing by 16% compared to Bt 5,276 mn in 2012. EBITDA margin in 2013 was 55%, compared to 51% in 2012. In 4Q2013, EBITDA was Bt 1,627 mn, increasing by 7% compared to Bt 1,527 mn in 3Q2013 and increasing by 3% compared to Bt 1,585 mn in 4Q2012. EBITDA margin in 4Q2013 was 55%.
Operating profit and Net profit increased
Jasmine International Pcl. 4 13 February 2014
Financial Statement Summary
(Baht mn) 4Q12 3Q13 4Q13 %QoQ %YoY 2012 2013 %YoYSales 3,007 2,820 2,940 4% -2% 10,369 11,123 7%Other income 20 25 73 196% 275% 61 137 126%
Total revenues 3,027 2,845 3,014 6% 0% 10,430 11,260 8%Cost of sales -1,460 -1,153 -1,217 6% -17% -4,686 -4,475 -5%
Gross profit 1,547 1,667 1,723 3% 11% 5,683 6,648 17%SG&A -559 -650 -656 1% 17% -2,372 -2,563 8%Profit(Loss)Sharing from ass. 0 0 0 4% 30% 0 0 -75%Loss on impairment -72 -15 100% -79% -72 -15 -79%
FX gain (loss) and Other expenses -234 -44 -111 155% -53% -308 -214 -31%
EBIT 702 998 1,015 2% 45% 2,992 3,994 33%Financial expenses -95 -79 -75 -4% -21% -404 -312 -23%Corporate income tax -160 -151 -147 -2% -8% -639 -605 -5%Minority interest 93 -14 -36 156% -139% 79 -74 -194%
Net profit 539 755 757 0% 40% 2,028 3,002 48%
FX gain (loss) and other items 348 55 157 185% -55% 489 298 -39%
Operating profit 887 810 914 13% 3% 2,517 3,301 31%Depreciation 443 488 490 0% 11% 1,715 1,900 11%
EBITDA 1,585 1,527 1,627 7% 3% 5,276 6,118 16%
Gross margin 51% 59% 59% 55% 60%EBITDA margin 53% 54% 55% 51% 55%
Jasmine International Pcl. 5 13 February 2014
1. Well positioned in an underpenetrated and rapidly growing market
2. Strong Brand Recognition and Competitive Pricing Leading to Market Share Gains
3. Extensive broadband network with high reliability and scalable
infrastructure 4. Strong and extensive sales and distribution network for effective
marketing 5. Leader in provision of innovative broadband products and services
Business Update
Jasmine’s Key Strengths
Jasmine International Pcl. 6 13 February 2014
1. Well Positioned in an Underpenetrated and Rapidly Growing Market
Source Media Partners Asia
118.4%
99.1% 92.3%
68.3%
18.9%
0%
50%
100%
150%
Singapore Korea Hong Kong Japan Thailand
14.7% 17.0%
18.9%
27.6%
35.2%
0%
10%
20%
30%
40%
2010 2011 2012 2015E 2018E
Thailand is One of the Most Underpenetrated Markets…
…But Penetration Has Been Gradually Increasing and Expected to Continue
% of Total Households; As of 31 December 2012
% of Total Households
Population & Household Growth to Drive Higher Penetration… (Population; MM) (Household; MM)
22.8 24.1
0
15
30
2012 2018E
64.4 66.0
0
40
80
2012 2018E
CAGR: 0.4% CAGR: 0.9%
Jasmine International Pcl. 7 13 February 2014
Broadband Homes Passed (2012; MM)
Favorable Demographics (2012 Population; 64.4MM)
11.5
1.7
0 5 10 15
Rest of Thailand
Bangkok
Subscribed Not Subscribed
59%
41%
28% 72%
Source Media Partners Asia
Bangkok 15%
Other Urban Areas 22%
Rural Areas 63%
2. Strong Brand Recognition and Competitive Pricing Leading to Market Share Gains
Jasmine has Consistently Increased Market Share over Time Fixed Broadband Subscribers (%)
24.9%
27.1% 28.3%
28.9%
15%
20%
25%
30%
2010 2011 2012 Q3 2013
Source Media Partners Asia
Jasmine International Pcl. 8 13 February 2014
Fiber Deployments Expected to Coexist Rather than Replace Copper Networks to Provide More Diverse Services
Subscribers (‘000) Growth will be driven by expansion into new areas both within BMA and into upcountry provinces
Household Penetration (%)
3,877 5,491 6,575
262
629
1,226
168
422
678
4,307
6,542
8,479
18.9% 27.6%
35.2%
0%
15%
30%
45%
60%
0
2,500
5,000
7,500
10,000
2012 2015E 2018E
ADSL FTTx Cable Total Penetration
Thailand’s Broadband Providers are Expected to Continue to Improve Speeds while Keeping Prices Relatively Constant ARPU (US$)
2012-15E CAGR: 15.0%
2012-18E CAGR: 12.0%
20.3 19.4 18.4
25.5 25.0 23.4 23.7 22.8 22.0
0
10
20
30
2012 2015E 2018E ADSL FTTx Cable
Our Strong Brand Recognition and Reputation for Quality and Reliability Has Been Widely Recognized by the Industry
• 2011-2012 No. 1 Brand in Thailand for Home Internet by Marketeer Magazine
• 2011 Broadband Service Provider of the Year by Frost & Sullivan
• Trust Brand 2012 - Gold Awards Winner for Internet Service Provider by Readers Digest
• Trust Brand 2013 - Gold Awards Winner for Internet Service Provider by Readers Digest
Source Media Partners Asia
Source Media Partners Asia
Jasmine International Pcl. 9 13 February 2014
3. Extensive Broadband Network with High Reliability and Scalable Infrastructure
Only part of OFC routes (inter-province) shown EGAT 2,068 km (all leased for backup) PEA 2,167 km (total leased 5,735km) 3BB 10,800 km (total installed 50,347km)
Remark: Solid Line denotes Main Route Dashed Line denotes Alternate Route
We Have Grown Our Subscriber Base at a Rapid Pace…. Broadband Subscribers (‘000) Homes Passed Served (1)
21.7% 24.5% 27.8% 27.9%
794 1,028
1,213 1,423
0%
10%
20%
30%
40%
0
400
800
1,200
1,600
2010 2011 2012 2013 Homes Passed Served (%) Broadband Subscribers ('000)
… While Ensuring Our Position as One of the Most Reliable Networks in Thailand
• Relatively new cables with an average age of 5 years
• Redundant physical route in network design across the region
• Loop topology in access node design in the provinces
Note 1. Homes passed served represents the number of subscribers at the end of the relevant period as a percentage of total homes passed
by TTTBB’s network at the end of the relevant period
Jasmine International Pcl. 10 13 February 2014
4. Strong and Extensive Sales and Distribution Network for Effective Marketing
3BB’s effective proximity sales distribution channels 3BB’s proximity sales distribution channels include its shops, minishops and kiosks, door-to-door sales, and its hosted local events
3BB’s Distance Channels: Online and Telesales
• 3BB’s website is a key destination for customers to discover and buy their products
• Presents online deals and promotions for 3BB products
Online
• 3BB engages in inbound telemarketing in which they present current promotions and plan upgrades to current and potential customers
Telesales
• Approximately 53% of 3BB’s sales are from its stores as of December 31, 2013
• 800 person in-house sales team across 357 3BB stores, which include over 300 3BB shops/minishops in department stores and townhouses and various 3BB kiosks, in 76 provinces
Stores and Kiosks
• Approximately 43% of 3BB’s sales are from its door-to-door sales as of December 31, 2013
• Door-to-door sales team consists of more than 500 employees with a target of 500 doors per day
Door-to-door
• The company targets customers by hosting events in certain communities where the company is looking to expand coverage
• Sales staff develop and maintain contact with real estate companies to ensure that new buildings will be connected to 3BB network
Events and Relationships
Jasmine International Pcl. 11 13 February 2014
5. Leader in Provision of Innovative Broadband Products and Services
2008
2011
2009
2010
2012
Launched “Maxnet 2Mb” marketing campaign to introduce and promote high 2Mbps Internet service
Launched broadband services with a minimum speed of 3 Mbps across entire subscriber base
Launched certain value-added services including, Movie Buffet, IPTV and hotspot wireless Internet
Began offering public WiFi services to mobile customers of Advanced Info Services PCL (“AIS”)
Introduced broadband services with speeds ranging from of 20 to 50 Mbps using VDSL technology
Started providing VoIP services in addition to broadband Internet services
Introduced domestic and international Internet leased line, IP-MLPS leased line and Internet data center services
Rebranded services under the “3BB” trade name
Launched broadband services with a minimum speed of 4 Mbps across entire subscriber base
Started providing broadband services with a minimum speed of 6 Mbps across entire subscriber base
Launched broadband services with a minimum speed of 10 Mbps across entire subscriber base
Introduced broadband services with speeds ranging from of 30 to 100 Mbps using new broadband services utilizing fiber optics with FTTx
Launched CloudIPTV and Cloudbox (online storage) for all customers
2013
Expanded FTTx for mass market in major provinces and introduced FTTX wifi with minimum speed of 10 Mbps in major cities
Jasmine International Pcl. 12 13 February 2014
Pursue Growth by Expanding into Existing and New Regions • Capitalize on the growth of broadband penetration in Thailand
• Maintain focus on rolling out the ADSL technology across under-penetrated geographical areas
• Implement the rollout plan to target major cities in every province where there is high population density
Enhance Subscriber Retention and Upselling • Increase customer satisfaction through all service interactions with its subscribers
• Continue to enhance in-house capabilities in order to maintain high quality of support
Increase Market Share in Highly Penetrated Urban Areas • Offer ADSL technology at attractive prices with higher speed, reliability and service quality
• Offer FTTx to targeted subscribers in the highly penetrated urban areas
• Increase market share in Bangkok over the next few years by increasing the number of physical stores
Continue to Focus on Improving Operating Efficiency • Improve the operational efficiency of business, in particular in the areas of human
resources, IT, billing, customer service and network
• Expand the international circuit to take advantage of economies of scale
Our Continued Growth to be Underpinned by Proven Strategies
Jasmine International Pcl. 13 13 February 2014
This document has been prepared and distributed by the Investor Relations Department of Jasmine International Public Company Limited ("JAS") solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares or other securities issued in relation to JAS and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. JAS does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, JAS assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of JAS or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
All information contained in this document is presented as of the date indicated within, and JAS assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, JAS assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. JAS undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Disclaimer
Jasmine International Pcl. 14 13 February 2014