FY2014 Results Presentation 19 January 2015

1

Forward looking statements Important note

This presentation and the following discussion may contain forward looking statements

by M1 Limited (M1) relating to financial trends for future periods

Some of the statements contained in this presentation or arising from this discussion

which are not of historical facts are statements of future expectations with respect to

financial conditions, results of operations and businesses, and related plans and

objectives. Such forward looking statements are based on M1s current views and

assumptions including, but not limited to, prevailing economic and market conditions

and currently available information. These statements involve known and unknown risks

and uncertainties that could cause actual results, performance or achievements to differ

materially from those in the forward looking statements. Such statements are not, and

should not be construed, as a representation as to future performance or achievements

of M1. In particular, such statements should not be regarded as a forecast or projection

of future performance of M1. It should be noted that the actual performance or

achievements of M1 may vary significantly from such statements.

2

Overview

Service revenue increased 1.4% YoY to S$831m

EBITDA margin improved to 40.4% of service revenue

Net profit after tax increased 9.7% YoY to S$176m

Margin improved to 21.2%

Postpaid ARPU for 4Q14 increased to S$63.1

Mobile data was 38.8% of service revenue for 4Q14

66% of postpaid customers on tiered data plans

22% exceeded data bundle

Fibre customer base increased 18,000 YoY to 103,000

Proposed final dividend of 11.9 cents

Estimate moderate growth in FY2015 net profit after tax

Performance

highlights

Dividend &

Outlook

Financial

highlights

for 2014

3

Financial highlights

Performance highlights

Developments and outlook

Agenda

4

Operating revenue (S$m)

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

Service revenue (S$m) 207 204 209 207 211 820 831

172163 164 168 168

644

671

2027 24 24 22

114 89

191636

17 18

62 71

135

72

1631 43

188245

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

Handset sales

Fixed services

International call services

Mobile services

+24.3%

+38.4%

240 250

346

240

279

1,008

1,076

+6.8%

5

Cost of sales (S$m)

8 99 88 31 3313

1110

11 9

39 38

8

14

9

17 15

70 5264

157

98

57 53

284 330

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

Handset costs

Traf f ic Expenses

Other costs

Wholesale costs of f ixed services

+37.7%

+98.8%

86

+6.8%

93

185

89

424

453

134

6

Other operating expenses (S$m)

346

38

13 1168

3 6 525 247

878

1924 308 782 8

25 302019

30

20

3

7881

2929

2928 28

109114

29

22

31 27 28

115114

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

Depreciation & amortisation

Staf f costs

Facilities expenses

Leased circuit costs

Other G&A expenses

Advertising & promotion

Doubtful debt provision

+10.1%

+3.9%

97 98

388404

102106

97

+4.1%

7

EBITDA & net profit after tax

EBITDA (S$m) & margin

on service revenue

Profit after tax (S$m) & margin

on service revenue

84 8679 82

83

336

312

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+9.3%

+2.3%

+7.4%

4544 4541

43

176

160

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+9.9%

+0.1%

+9.7%

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

PAT margin

(on service revenue)19.6% 21.0% 21.0% 21.5% 21.1% 19.5% 21.2%

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

EBITDA margin

(on service revenue)38.2% 40.0% 39.8% 40.8% 40.9% 38.1% 40.4%

8

Capex & free cash flow

Capex (S$m) Free cash flow (S$m)

27

67

(42)5

41

176

93

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

-973.3%

-163.0%

-47.0%

283946 39

33

12514040

40

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

Cost of spectrum

-14.5% / +72.7%

-0.2% / +101.6%

+11.4% / +43.4%

9

Financial leverage

S$m FY2013 FY2014 Change

Cash & cash equivalents 54.5 22.8 -58.2%

Net debt 195.5 279.2 42.8%

Net assets 395.1 394.6 -0.1%

Net debt/equity (x) 0.5 0.7 43.0%

Net debt/EBITDA (x) 0.6 0.8 32.9%

EBITDA/Interest (x) 70.1 83.0 18.4%

Net assets per share (cents) 42.8 42.4 -0.9%

EPS - diluted (cents) 17.4 18.8 8.3%

10

Financial highlights

Performance highlights

Agenda

Developments and outlook

11

Mobile customers

Postpaid customer base (000) Prepaid customer base (000)

1,130 1,138 1,148 1,147 1,149

4Q13 1Q14 2Q14 3Q14 4Q14

979 966

855

756 703

4Q13 1Q14 2Q14 3Q14 4Q14

12

Postpaid mobile

Postpaid mobile revenue (S$m) Postpaid monthly ARPU (S$)

148 147 151143 145

558

591

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+5.9%

+2.7%

+5.8%

54.4 55.1 55.5 55.2 56.8 53.4 55.6

61.8 62.2 63.162.3 62.3 62.4 61.8

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

ARPU allocated to handset sales

+2.1%

+1.4%

+1.0%

13

Prepaid mobile

Prepaid mobile revenue (S$m) Prepaid monthly ARPU (S$)

20 20 2121 19

86

80

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+1.5%

+2.4%

-6.7%

13.6 12.6

13.7

15.7 16.9

14.8 14.5

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+7.6%

+24.3%

-2.0%

14

Mobile market share

Overall market share* Postpaid & prepaid market share*

* - Based on published statistics available at the time of submission

25.1% 25.0%24.1%

23.3% 23.1%

4Q13 1Q14 2Q14 3Q14 Oct-14

25.0% 24.9% 24.9% 24.7% 24.6%

4Q13 1Q14 2Q14 3Q14 Oct-14

Postpaid

25.2% 25.0%23.2%

21.6% 21.1%

4Q13 1Q14 2Q14 3Q14 Oct-14

Prepaid

15

Postpaid mobile

Acquisition cost

per postpaid customer (S$) Monthly churn rate (postpaid)

Note: Cash basis

396

309

268

369

438

346 355

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+10.6%

+18.7%

+2.6%

1.1% 1.1%1.2%1.2%

1.1% 1.1% 1.1%

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

16

Data plan ARPU & non-voice contribution

Data plan ARPU (S$) Mobile data and SMS contribution

to service revenue

19.6 19.5 19.7 18.3 18.3

20.8

18.9

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

-6.6%

0.0% -9.1%

31.0%32.7% 34.4%

36.4%38.8%

28.9%35.6%

12.4%12.3% 11.7%

11.5%11.1%

12.7%

11.7%

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

SMS

Mobile Data

46.1%47.9%

49.9%47.3%

45.1%43.4%

41.6%

17

Fibre monthly ARPU (S$) Fibre Customer base (000)

Fixed services

8590

9498 103

4Q13 1Q14 2Q14 3Q14 4Q14

43.641.7 41.9

45.046.4 46.1

43.9

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

+6.4%

+3.1% -4.8%

18

International call services

International retail minutes

(million mins)

International call services

revenue (S$m)

291276

314

250

324

1,131

1,303

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

-23.0%

-9.4%

-13.2%

24 22 2024

27

114

89

4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14

-23.4%

-9.3%

-21.6%

19

Financial highlights

Performance highlights

Developments and outlook

Agenda

20

Developments and outlook for 2015

Faster network and devices will drive data growth

First nationwide LTE-Advanced network supporting

300Mbps

Data usage of smartphone users

Contributed 65% of total data traffic, up from 55% a year ago

Average data usage grew to 3.0GB/month in 4Q14, from

2.5GB/month a year ago

Continue to invest in smart solutions and M2M platforms

Support Smart Nation initiatives and machine-based

applications

Mobile

services

Residential

Take-up of higher speed fibre plans will be ARPU accretive

Corporate

Focus on product and service differentiation

Well-placed to capture growth with increasing fibre adoption

Fixed

services

21

Guidance for 2015

Estimate moderate growth in FY2015 net profit after tax

Capex to be around S$120m

Financial

guidance

At least 80% payout ratio

Regularly review capital requirements

Dividend

policy

22

Thank you