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20 th March 2006 Samart Group SET Opportunity Day.

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Presentation on theme: "20 th March 2006 Samart Group SET Opportunity Day."— Presentation transcript:

1 20 th March 2006 Samart Group SET Opportunity Day

2 Key Accomplishments Business reorganization: - Injected Samart Comtech into Samart Telcoms Dividend payment: - SAMART: Bt. 0.30 for 2005 performance (Bt. 0.10 interim, Bt 0.20 final) - SIM: Bt. 0.47 for 2005 performance (Bt. 0.25 interim, Bt.0.22 final) - SAMTEL: Bt. 0.30 for 2005 performance (Bt. 0.15 interim, Bt. 0.15 final) Realigned Business Portfolio: - Invited Telekom Malaysia as strategic investor in SIM (24.42%) - Off loaded 49% stake in Mobile operations in Cambodia to Telekom Malaysia Recognition: -Samart was conferred to use Royal Garuda by Appointment of His Majesty the King of Thailand

3 100% jump in revenues from International Markets Revenues from International Markets 2004 2005 Proportion of revenues from international markets to improve significantly in 2006

4 2005 Consolidated Performance - Revenues up 28.6% - Net Profit up 6.9% - Core Profit up 25.3% Y-O-Y Profit details:20042005 Net Profit: 546584 Less: Gain from BLISS800 TTM Net Op. Profit466584 EPS from Op.0.490.61 EPS incl. Extra0.580.61 ROE24.4%21.3% ROA4.54%4.48% D/E L/T debt0.850.66 (Co. only)

5 2005 Performance Revenue Contribution Net Profit Contribution

6 Consolidated Balance Sheet Dec. 2004Dec. 2005 Total Current Assets 6,399 6,785 Total Current Liabilities 5,217 6,279 Net Working Capital 1,182 506 Total Assets12,029 13,027 Total Liabilities 8,163 8,848 Retained Losses (81) 387 Company shareholders equity 2,234 2,735 Total Shareholders Equity 3,865 4,179

7 Business Focus: Growth Drivers ICT & Telecom businesses HandsetContentMultimediaEntertainment Technology related investme nts UtilitiesTransportation -Turnkey and service projects projects - Expansion of IPSATR projects with TOT projects with TOT and other govt agencies and other govt agencies - Outsourcing - Regional presence (M ’ sia, B ’ desh, Indonesia, (M ’ sia, B ’ desh, Indonesia, Indo china, South Asia) Indo china, South Asia) - Exclusive content provider (new applications) (new applications) 3G/Broadband 3G/Broadband - Opportunities in media entertainment sector entertainment sector - Technology related investments investments - Domestic and international projects related to utilities projects related to utilities

8 Business Structure: 2006 51%65% New Project 90% RelatedBusinesses Call Center 100%100% UtilitiesBusiness

9 New Inbound Carriers Phnom Penh – Air Asia,Thai Air Asia, Jet Star Siem Reap – Air Asia,Jet Star,Asiana Siem Reap – Jet Star New Over flight routes 2006 Samui Hong Kong Taiwan KL Singapore Hong Kong KL Singapore Africa -Sustainable growth in - Inbound traffic - Over flights Cambodia Air Traffic Services 2005 revenues of USD 15.5 mill Growth in regional air traffic to benefit CATS in 2006

10 Call Center Business Turnkey System Outsource Call Center Outbound Telesales Debt Collection CS Training Academy One to One MOTC ( คมนาคม ) MOC ( พาณิชย์ ) MOPH ( สาธารณ สุข ) MOL ( แรงงาน ) MOI ( มหาดไท ย ) MOF ( การคลัง ) Bank Insurance Financial Firm Automobile PTT Microsoft HP/IBM ICT, Transportation, TAT, MEA, PEA The only integrated call center in Thailand System design, installation of call center facilities for clients Complete operations of Call center facilities

11 Market Size and Opportunity Target Outbound call centers for private and government clients Strengthen position in Outsourcing market Maintain leadership in Turnkey call center sector

12 Opportunities 2006: NBT project: Opportunity to sell Samart DTH World cup 2006 Export new product (Samart DTH) to neighboring countries DTH Strategy: Samart DTH is position towards C+ Target It’s KU band digital quality reception Able to receive free TV and NBT DSTV Strategy: Increase sales from new UBC package Introduce new promotion to the market Attractive pricing Samart Engineering

13 New Growth Opportunities Domestic opportunities: - Renewable energy plant: - Existing (in operation) - Acquire (2/3 locations) - Waste treatment: - NBIA (bidding) - Major cities (Chiang Mai, Phuket) International opportunities: - Proposed location in Southern Cambodia - Green field coal fired power plant - Begin with 100 MW, license up to 500 MW Baht 2,501 mill from disposal of SIM & CASACOM Shall be used to invest in utilities business:

14 Samart i-mobile Public Company Limited Symbol:SIM.BK Total Shares: 430 mill Free Float: 20%

15 2005 Performance - Revenues up 28.4% - Net Profit down 11.9% - Core Profit up 20.1% Y-O-Y Include Bt. 114 mill extra ordinary gain from disposal of BLISS & TTM shares Profit details:20042005 Net Profit: 427376 Less: Gain from BLISS1140 TTM Net Op. Profit313376 EPS from Op.0.720.87 EPS incl. Extra0.990.87 ROE19.6%17.0% ROA8.65%8.20% D/E L/T debt0.050.00 (Co. only)

16 Consolidated Financials Dec. 2004Dec. 2005 Total Current Assets 3,803 3,469 Total Current Liabilities 2,648 2,362 Total Assets 4,939 4,583 Total Liabilities 2,769 2,377 Shareholders equity 2,169 2,205

17 Handset composition Increasing house brands Handset sales & Average price Actual data Domestic Handset Sales: 2001-2006(f)

18 Replacement Market New features Peer pressure Affordable 3G Handsets New Services New sub to slow down Replacement mkt to grow 12% Total h/s mkt = 6.8 mill H/s avg price = Bt.7,250 2006 50,000 h/s 2006 74 handset models - House brand - Branded - 3G h/s sales to take off 2007 onwards - New generation handsets to drive growth Domestic Handset Market Opportunities

19 Positioning Target sales growth twice the market growth Build strong number 3 position in the local market with 20% market share Services Products Expand Service Center throughout nationwide Improve quality & reduce fault rate of i-mobile phones Available tempo phones and reduce turnaround time “ Mobile Multimedia Society” Market 3.2 new addition and 3.6 replacement users for 2006 Innovative, customized and value for money, mid-high end 65% of total handsets in 2006 will be house brands Launch I-mobile “3G” handsets within 2006 Domestic Handset Sales: Action Plan 2006

20 International Business International Existing markets Bangladesh Cambodia Laos Malaysia New potential markets Brunei* India* Indonesia* Pakistan* Vietnam Note: * TMI ’s territories “Regional Mobile Multimedia” Telekom Malaysia International Top Brand i-mobile Brand Mobile Content Application New Alliance & Business Opportunity

21 Markets to be penetrated beginning 2006 Existing Markets Bangladesh Aktel GSM Cambodia CASACOM GSM Sri Lanka MTN GSM Indonedia Xlcom Indo GSM Mslaysia Celcom GSM/3G/CDMA 18% penetration Pop:20 mill International Business 7% penetration Pop:12 mill 70% penetration Pop: 26 mill 22% penetration Pop: 233 mill 7% penetration Pop:140 mill Opportunities from Low penetration markets

22 International Business Handset Sales In International Markets vs. Average price - Exclusive 3G handset/content provider for Celcom - H/S swap program for 100,000 post paid users - Set up key dealer network for distribution 2007 (est.) Sales by markets

23 Content Business: New Opportunities BroadbandContent Voice Non- Voice Media Source: Bualuang Sec Growth opportunity Million Minutes 1999-2005

24 Multimedia Business 2006 Business Outlook Download full song service in WMA format with DRM (Protect copyright) BUG Music Provide information e.g. restaurant, travel destination, based on user’s location City Guide Real-time mobile chatting service “Avatar“ is cute cartoon representing each user’s character to make chatting more interesting & realistic Never Land Avatar New Products Coming up next for Q2/2006

25 Application Roadmap 2006 Personal Entertainment Personal Communication Personal Information Personal Productivity Personal Investment Music CallerMedia BrowserPocket Music Never Land M - Ripper Smart Live Media City GuidePersonal Smart V3 Financial Smart V4 Catalogs on Mobile M - Blog Lady’s Corner II Bug Music 1900 BugHits 1113 Smart TV Broadband 1900 MobileCast

26 Samart Telcoms Public Company Limited Symbol:SAMT.BK Total Shares: 600 mill Free Float: 30%

27 SAMTEL Business Structure Network Services System Integration Business Application Solutions & Services Outsourcing - Providing network services & applications - VSAT/IP Star - USO - NGN - Business TV/Broadcasting - ISP Business Providing turnkey IT solutions for private/government sector - MOI - MOJ - MOD - NBIA Provide specific business process application services for business effectiveness - e payment - e logistics - e Learning Provide application integration services in specific industries for business efficiency - Government - Telecoms Growth potential SAMTEL Portfolio

28 2005 Performance - Revenues up 48% - Net Profit up 45% profit details:20042005 Net Profit: 171248 Less: Extra gain00 Core Profit171248 EPS from Op.0.330.47 EPS incl. Extra0.330.47 ROE11.7%20.6% ROA9.1%6.1% D/E L/T debt0.010.16 (Co. only) Y-O-Y

29 Consolidated Financials Dec. 2004Dec. 2005 Total Current Assets 674 2,294 Total Current Liabilities 410 2,024 Total Assets1,871 4,018 Total Liabilities 416 2,818 Shareholders equity 1,455 1,199

30 Opportunities 2006 2006 Market Environment ICT Biz 2006 Growth is 10 % and 2005 is 7% fm 2004 Mobile up 12.5% to 29.3 M Sub, Computer Unit up 12.5% to 1.34 M, Internet User up 10% to 10 M sub NTC deregulates Lic. ISP, VOIP, Internet GW in 2005 and coming 3G, Wimax, Satellite Services, Unbundle NW Element in 2006 as well as introduction of Interconnecting charge. High Competitions among Infrastructure Provider TOT, CAT, True, TT&T, AIS, Dtac Opportunity for shopping best deals. High Demand on NW Bandwidth, e Security, Web Services and Outsourcing services to support e Government.

31 NTC related Projects New Generation Networks - TOT: Soft switch IPSATR applications for corporate/govt. - Distance learning - Satellite Broad band - Business broadcasting - Internet Tambol Other Projects - Government Savings Bank - POSNET EDC terminal sales Opportunities 2006

32 Existing Cash Cow Business Rural telephony Concession 8,000 numbers Bt. 72 mill/mo fixed Concession Period till 9/2006 Maintenance Contract 9/2006 onwards + School net Concession 10,000-14,000 schools Bt. 40-50 mill/mo fixed Concession Period till 1/2011 Provide Internet Access using IPSATR (voice+data) Cash Cow of the Group Rural Telephony Project School Net Project Over Baht 100 mill/month in fixed revenues Over Baht 100 mill/month in fixed revenues

33 “ EFTPOS/EDC: Electronic File Transfer Point of Sale / Electronic Data Collect ” Service Outsourcing Terminal Trading Petronas Turn Key Solutions Business Applications: EFTPOS - Opportunity to Sell EDC Sell EDC Terminals Terminals - Expand Service outsourcing outsourcing

34 Customer Base  Suvarnabhumi Airport  Ministry of Interior  Ministry of Defense  Royal Thai Air Force  Supreme Command Headquarters  Royal Thai Aid-De-Camp Department  Ministry of Justice  Department of Industrial Works  Thai Meteorological Department  Department of Civil Aviation  Immigration Bureau  ITV System Integration

35 Government Spending on IT System Integration

36 Revenues - Consistent growth over past growth over past 3 yrs 3 yrs - Beneficiary of increased increased spending by spending by government government agencies agencies - Increased know how (S/W, H/W, how (S/W, H/W, complex systems) complex systems)

37  Government Saving Bank Bht 142 mill  POSNET Terminal Sales Bht 139 mill Projects won in Q1-06


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