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THAICOM Public Company Limited US Roadshow 8 – 11 March 2016 1
THAICOM Public Company Limited
US Roadshow8 – 11 March 2016
1
Agenda
• Thaicom…Who We Are
• Financial Highlights
• What’s Next
2
Who We Are
3
• Thaicom Public Company Limited (formerly named Shin Satellite) was founded on 7th November 1991, part of Intouch Holdings Public Company Limite d.
• His Majesty King Bhumibol Adulyadej of Thailand graci ously named the first national communications satellite, “THAICOM” which stands for “Thai Communications”.
Our Company
4
Shareholding StructureAspen Holdings Ltd. (Temasek Holdings)
41.62%
IPSTAR Global Service Ltd. 100.00%
Spacecode LLC 70.00%
IPSTAR New Zealand Co., Ltd. 100.00%
1) Holding Company
2) Listed Company on the Stock Exchange of Thailand
* As of 19 January 2016
IPSTAR Japan Co., Ltd. 100.00%
IPSTAR International Pte Ltd. 100.00%
STAR Nucleus Co., Ltd. 100.00%
IPSTAR Co., Ltd. 100.00%
IPSTAR Australia Pty Ltd. 100.00%
TC Broadcasting co., Ltd. 99.99%
International Satellite Co., Ltd. 100.00%
Intouch Holdings Plc. 1),2)
Thaicom Plc. 2)
Satellite Services
Shenington Investments Pte Ltd. 51.00%
Lao Telecom Co., Ltd. 49.00% DTV Service Co., Ltd. 99. 99%
CS LoxInfo Plc. 2) 42.07%
Cambodian DTV Network Ltd. 100.00%
AD Venture Public Co., Ltd. 99.99%
Teleinfo Media Plc. 99.99%
Telephone Network servicesInternet Services and Media
Orion Satellite Systems Pty Ltd. 100.00%
41.14%
IPSTAR (India) Private Limited 100.00%
5
Our Business Operations
Internet & Media
Telephone Aboard
Satellite
6
Our Satellite Fleet
7
THAICOM 1A THAICOM 2 THAICOM 3 THAICOM 4 (IPSTAR)
THAICOM 5 THAICOM 6 THAICOM 7 THAICOM 8
Scheme Operating Concession License
Type of Satellite Broadband Conventional Conventional
Fee20.5%
(Sep 2016 = 22.5% onwards)5.25%
Contract Life (Yr) 30 yr (2021) 20 yr (2032)
Useful Life (Yr) 15 14 18 18 18
Utilization rate* ~57.5% ~100% ~65-66% ~78%Presales
17%
UpcomingIn-orbitedDe-orbited
De-orbited: 2010
De-orbited: 2010
De-orbited: 2006
*As of December 2015
TC4 (Ku)
TC5 (C,Ku)
Our Satellite Footprints
50.5E 78.5E 120E119.5ECoverage Area
TC4
TC5
Remarks: *TPE = 36 MHz transponder equivalents
TC6 (C,Ku)
TC7 (C)
TC6
TC7
TC8
TC4 TC5 TC6 TC7 TC8
119.5°E 78.5°E 78.5°E 120°E 78.5°EC Ku C Ku C Ku C Ku C Ku
Indochina - - -
SEA - - - - - - -
South Asia - - - - - -
North Asia - - - - - - - -
Australasia - - - - - - -
ME, Africa - - - - - - -
Total TPE* 881 40 33 14 24
TC8 (Ku)
8
TC4 881 TPE*
22x of TC5
=
Broadband Satellite Capacity
TC5 40 TPE*
Our Services: Broadcast
9
Asia’s “Hot Bird” for Satellite TV
Our Broadcast Services
18.6 Millionviewers
or
76%
Service area covered
>120 Countries
792HD
Satellite TV Channels
in orbit 78.5°°°°E
�of total TV Households
Source : Nielsen, Aug 2015Source : Thaicom PLC, 2015
No.1 in Thailand and IndochinaA key player in South Asia 10
Broadcast Platform: HD & Ultra HDReady for Ultra HD services
358 416 442 567 592 666- 11 2374 110 126
358427 465
641702
792
2010 2011 2012 2013 2014 2015
HDSD
HD : 84% CAGR 2011-2015
Source : Thaicom PLC, 2015
HD HD HD HD HD HD
4K 4K
HD HD
8K
SD SD SD SD SD SD SD SD SD SD SD SD SD SD SD SD SD SD SD SD
Standard Definition : 20-22 Channels
High Definition : 6-8 Channels
4K Ultra HD : 1-2 Channels
8K Ultra HD : 1 Channel
Transponder (36 MHz)
Source : Thaicom PLC, 2015
Number of Satellite TV channels on Thaicom @78.5E
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� Thaicom’s Satellite TV platform and authorized DTH service in Cambodia
� The 1st HD channels providersince 2013
� ~400,000 subscribers
Broadcast Platform : AEC Platform
~2.7 Million
TV Households
~5.8 Million
TV Households
~1 Million
TV Households
� No Satellite key players
� Only 2 Satellite key players
Myanmar Lao
Cambodia
12
Our Services: Broadband
13
PRESENCE in10+ COUNTRIES in Asia Pacific
Main segment: Corporate/Banking & Mobile backhaul
Main segment: School and Government project
Main segment: Mobile backhaul (small-cell 3G)
Main segment: Government project
Main segment: Consumer Broadband
AUSTRALIA & NEW ZEALAND
“The World’s first Broadband or High Throughput Sat ellite (HTS)”
Our Broadband Services
INDIA
JAPAN
THAILAND
MALAYSIA
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“Connect 84,000+
subscribers across Asia-Pacific”
Satellite Broadband Solution for
Internet Service Providers
IPSTAR Retail
“ 6,000+ cell sites deployed in key
markets”
Cost-effective Backhaul & Expansion
of Service Coverage
for Telcos
IPSTAR Carrier
Broadband Platform
“ 18,000+ banks and corporate sites
installed throughout the region”
Satellite Broadband Solution for
Small Businesses and
Enterprises
IPSTAR Business
“Provide custom-tailored solutions on an
end-to-end basis to serve commercial airlines, train/bus
operators and vessels”
Communication Solutions for
People on the Move
Mobility Platform
15
Mobility Trend
Increasing global demand for
mobility services
Global IFC Equipped Aircraft 2014-2024
16,26216,262
Source: NSR
2014
2024 909,170909,170
438,895
Global Maritime In-service Units 2014-2024
Asia to account for 3 rd largest region in 2024 after North America and Western Europe
Asia to account for 2 nd largest region after Europe
3,888CAGR 15.4%,
2014-2024 CAGR 7.6%, 2014-2024
16
2nd Screen UsageAsia-Pacific has the highest percentage of 2 nd screen usage
Source: Nielsen 2015
Percentage of 2 nd screen users by region
THAICOM Innovative Business Model
17
Financial Highlights
18
Satellite
Internet & Media
Consolidated Revenues
Unit: MBRevenue continued to grow significantly from Satellite business
3,095
6,309
3,028
6,964
3,110
3,195
8,783
9,258
9,404
9,992
11,893
12,453
2012 2013 2014 2015
CAGR (2012-2015) = 10%
19
(67%)
(33%) (70%)
(30%)(74%)
(26%) (74%)
(26%)
174
1,128
1,601
2,122
2%
11%
13%
17%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0
500
1,000
1,500
2,000
2,500
3,000
2012 2013 2014 2015
20
Net Profit and Net Profit Margin
CAGR (2012-2015) = 130%Strong growth of consolidated Net Profit and improving Net Profit Margin
Unit: MB
Net Profit
Net Profit Margin
Satellite Performance
2012 2013 2014 2015
Conventional(Broadcast)
Broadband
46% 49%51%
54%
54% 51%
49% 46%6,3096,964
8,7839,258
CAGR (2012-2015) = 15%
Satellite Revenue
Unit: MB
Satellite EBITDA
3,328 3,370
4,577 5,147
53%48%
52%56%
0%
10%
20%
30%
40%
50%
60%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012 2013 2014 2015
Satellite EBITDA
EBITDA Margin
CAGR (2012-2015) = 16%Unit: MB
FY2013 EBITDA Margin dropped to 48% due to costof interim satellite.
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Asset 28,582
Cash 3,401 BE
1,609
Interest bearing debt
11,750
Liabilities 3,731
Equity 18,111 Consolidated CF 2015 2014*
CF from Operating 4,729 4,831
CF from Investing (3,378) (5,913)
CF from Financing (716) 1,567
Ending Cash 3,401 2,769
D/E Ratio 0.65x 1
* Restated
Unit: MB
Strong operating cash flow
2015
Unit: MB
1 Interest-bearing Debt / Equity2 Excludes Cash and BE3 Excludes Interest-Bearing Debt
2
3
Financial Position remains Healthy
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0.72 0.73
0.93 0.72
0.40 0.45
0.65 0.65
56%62%
70%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2012 2013 2014 2015
EPS (Baht) - Stand aloneDPS (Baht)Dividend Payout ratio
Delivering Consistent Dividend
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Dividend payout policy is NOT less than 40% of stand-alone Net Profit
What’s Next
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• To Maximize existing assets and grow value added revenues Short
Term
• To ensure long-term service continuity Medium
Term
• To leverage market access and partnership
Long Term
What’s next
25
[email protected]°E de-orbited
[email protected]°E de-orbited
TC7@120°E
TC1A @120°E de-orbited
Our Future: Developing the new chapter of THAICOM fleet
“ Follow-on satellite systems to ensure long term viability ”
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Thank You27
Some statements made in this material are forward-looking statements with the relevantassumptions, which are subject to various risks and uncertainties. These include statements withrespect to our corporate plans, strategies and beliefs and other statements that are not historicalfacts. These statements can be identified by the use of forward-looking terminology such as “may”,“will”, “expect”, “anticipate”, “intend”, “estimate”, “continue” “plan” or other similar words.
The statements are based on our management’s assumptions and beliefs in light of the informationcurrently available to us. These assumptions involve risks and uncertainties which may cause theactual results, performance or achievements to be materially different from any future results,performance or achievements expressed or implied by such forward-looking statements. Please notethat the company and executives/staff do not control and cannot guarantee the relevance, timeliness,or accuracy of these statements.
Disclaimers
IR contactsInvestor Relations DepartmentE-mail: [email protected]: http://www.thaicom.net/ir.aspx1. Metinee Isarachinda [email protected] +66 2 596 50722. Ratchada Srithongpoeng [email protected] +66 2 596 5073
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Appendix
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Internet & Media Telephone Aboard
Other Businesses
(1,245)
57 302 380
2012 2013 2014 2015
Market share & Competitors
Net Profit of Telephone Aboard
Unit: MB
* 51% held by THAICOM (Share of profit of investment in JV)
1.95Million
subscribers
CAGR (2013-2015) = 159%
as of end of 2015
3,095
3,028
3,110
3,195
2012 2013 2014 2015
Revenue of Internet & Media
CAGR (2012-2015) = 1%Unit: MB
ICT Business
Voice & Mobile Business
Yellow Pages Business
� Leased Line
� Internet Data Center 52%
34%
11%
3%
LTC #1
UNITEL
Beeline ETL
Source : LTC, Dec 2015
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Broadcast Service Diagram
TV Station/Teleport-Production-Compression-Uplink, etc.
Repeater Station (Analogue & Digital TV)
Direct-to-Home (DTH)
Cable TV
THAICOM (Conventional)
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Broadcast Trend : Key Drivers
4K/Ultra HD TV shipments forecast by region
� Number of 4K TV shipments to reach ~19M in 2018� ~40% are from Asia Pacific� 4K TV average selling price is below $1,000 from
2015 onwards
� Number of 4K TV shipments to reach ~19M in 2018� ~40% are from Asia Pacific� 4K TV average selling price is below $1,000 from
2015 onwards
Exponential growth of TV shipments
million
55”- 59” = $955
Average selling price of 4K TV worldwide
0
200
400
600
800
1000
1200
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Global Ultra HD via Satellite ChannelsChannels
Source: NSR Source: spacenews.com
Ultra HD TV households by region (in Million): 2014-2025
“The number of Ultra HD channels will reach 1,000 channels in 2025
Over 180 channels are from Asia Pacific”
“No. of Ultra HD TV households in Asia Pacific to reach 184M in 2025”
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Broadband Service Diagram
BSC RNC
Mobile Operator’s Core Network
IPSTAR GatewayHeadquarter
Internet
THAICOM 4 (IPSTAR)
BSC: Base Station ControllerRNC: Radio Network ControllerBTS: Base Transceiver Station
Mobility & Emergency Communications
Government (Community/School/USO)
In-flight Entertainment and Connectivity (IFEC)
Telco Backhaul & Enterprise
Node B
Femto/SmallCell
Maritime
Satcom-on-the-move (SOTM)
BTS
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Broadband Trend : Key Drivers
Mobility Services: Mobility Services:
34
60 EB 78 EB 90 EB110 EB
138 EB170 EB
80% are
video content
Annual global IP traffic will pass the “zettabyte” threshold by the end of 2016
Remark: zettabyte = 1,000 exabytes or 1,000,000,000,000 gigabytes
The Zettabyte Era
• Led by video content (to increase from 67% in 2014 to 80% in 2019)
• More data consumption
• Led by video content (to increase from 67% in 2014 to 80% in 2019)
• More data consumption
-
500
1,000
1,500
2,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Distribution DTHContribution & OUTV Telephony & CarrierEnterprise Data Broadband AccessCommercial Mobility Gov/Mil
Global HTS Bandwidth Demand by Application
2014Rank
Company Location 2014 Revenue 2013 RevenueSatellite in Orbit
Satellite on Order
2013 Rank
Revenue 2013-2014
1 Intelsat Luxembourg/United States $2.47 billion $2.64 billion 55 7 1
2 SES Luxembourg $2.33 billion $2.56 billion 53 7 2
3 Eutelsat France $1.65 billion $1.79 billion 34 7 3
4 Telesat Canada $793.7 million $838.6 million 10 1 4
5 Sky Perfect Jsat Japan $446.2 million $594.9 million 16 3 5
6 Arabsat Saudi Arabia $350 million $341 million 6 3 6
7 Yahsat United Arab Emirates $285 million < $50 million 2 1 New Entry
8 Thaicom Thailand $267 million $267 million 4 1 10
9 China Satcom China $260 million $230 million 10 2 11
10 Hispasat Spain $246.6 million $277.3 million 7 3 9
11Russian Satellite
Communications Co.Russia $230 million $176.8 million 12 2 14
12 Singtel Optus Australia $204 million $281 million 5 0 8
13 Star One Brazil $200 million $250 million 7 2 7
14 Nilesat Egypt $192 million $180.9 million 2 0 13
15Antrix/Indian Space
Research OrganisationIndia $185 million $170 million 9 4 15
Thaicom is now no. 8 in the world
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A-
2015 Awards & Distinctions
“TOP2 Outstanding Achievement Awards”
by ASEAN Capital Markets Forum (ACMF)
“Top 50 ASEAN CG Scorecard 2015 ”by ASEAN Capital
Markets Forum (ACMF)
“Board of the Year Awards 2015
Distinctive Practices”
by Thai Institute of Directors Association
(IOD)
“Board of the Year Awards 2015
Audit Committee of the Year”
by Thai Institute of Directors Association
(IOD)
“Board of the Year Awards 2015
Consistent Best Practice”
by Thai Institute of Directors Association
(IOD)
“Excellent CG Scoring 2015”
by Thai Institute of Directors
Association (IOD)
“Thailand SustainabilityInvestment”
2015by SET
“A- with Stable Outlook”
2015by TRIS Rating
“ESG 100 Award”2014
by Thaipat Institute
“Top Fixed Satellite Service Operators”
2014by SpaceNews
Thaicom Takes 8th in Global Rankings
“Excellence Awards”Corporate Social Responsibility
from Via Satellite, USA
Stable
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