Financial & Operational Performance for Financial Period Ended 30 September 2013
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Forward Looking Statements
This presentation and the following discussion may contain forward looking statements by Green Packet Berhad that reflect management’s current expectation, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those discussed in the forward looking statements. Such statements are not and should not be construed as a representation as to the future performance or achievements of Green Packet Berhad and Green Packet Berhad assumes no obligation to update any such statements.
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C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Highlights of 3Q13
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Green Packet Group’s 3Q13 EBITDA grew 30% YoY and 28% QoQ to RM12million, 8th consecutive EBITDA positive quarter.
Positive EBITDA growth across business pillars:
Solution Pillar: RM1.7million, increased by 750% YoY and 667% QoQ.
P1 Pillar: RM8.8million, increased by 5% YoY and 4% QoQ.
Alternative Services: RM1.5million, increased by 114% YoY and 25% QoQ.
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Solution Pillar Operational Performance
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C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
189 198 204
212
91.0 121.4
181.8 190.2
103.8
156.1
111.6
Q1 Q2 Q3 Q4
Year 2011 Year 2012 Year 2013
Device Shipments in 3Q13
*Green Packet ,March 2013
Q313: 111,582 units > -39% YoY Increase > -29% QoQ Increase
WiMAX Device Shipments Slows as LTE Picks Up Steam.
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
60 TD-LTE 51 TD-
LTE 46 TD-LTE
LTE Gaining Traction From Trial To Commercial
15 WiMAX
+ LTE
20 WiMAX
+ LTE
8 Trials
Clients
11 Trial
Clients
21 WiMAX
+ LTE
13 Trial
Clients
2012 Q1-Q2 2013
*GSA, WiMAX Forum, Green Packet Records - Includes commercial, committed and planned networks
Soft Launch of Green Packet’s and
the industry’s 1st LTE+WiMAX Device
@ Singapore
Commercial Launch of the Green Packet
POD and OD portfolio
Preview Launch of Green Packet’s 1st
LTE Device @ MWC Barcelona
Q3 2013 61 TD-
LTE
21 WiMAX
+ LTE
13 Trial
Clients
2 Commercial Clients
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Continues to Supply to Leading WiMAX Operators
*Selective PO Obtained In Q3 2013
IPI-9 Gabon
~U$0.5 mil
ARIA Telecom Italy
~U$2.3 mil
Digicel Jamaica
~U$0.8 mil
SMART Communications Philippines
~U$1.5 mil
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
4Q13 Focus
Launch LiTE series
Modems
Obtain significant
orders for LTE devices
Close >150K Wimax Orders
Single Mode , Single Band Modems
MAINTAIN WIMAX GROW LTE
TM
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
P1 Pillar Operational Performance
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Private & Confidential. Powered by Packet One Networks 10
Total Sites as of 3Q13
916 1009 1083 1171 1527 1610 1678 1791 1868 1881 1902
93 74 88 356
83 68 113 77 13 21 4
1009 1083 1171
1527 1610 1678 1791 1868 1881 1902 1906
0
500
1000
1500
2000
1Q'11(A)
2Q'11(A)
3Q'11(A)
4Q'11(A)
1Q'12(A)
2Q'12(A)
3Q'12(A)
4Q'12(A)
1Q'13(A)
2Q'13(A)
3Q'13(A)
Num
ber o
f site
s
Existing Sites New Sites Total Sites
Cumulative sites as at end Q313: 1,906
Minimal New WiMAX Capacity Sites in View of LTE Migration in 2014
Private & Confidential. Powered by Packet One Networks 11
Total Subscribers as of 3Q13
304.77 337.84 355.46 388.55 399.05 409.95 434.90 433.49 448.98 454.66 453.21
14.21 19.14 20.88
26.88 47.06 57.45 70.72 83.64 92.26 98.41 99.87
318.97 356.98 376.33 415.43 446.11 467.41
505.61 517.13 541.24 553.07 553.09
0
100
200
300
400
500
600
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
Num
ber o
f Sub
s (T
hous
ands
)
Broadband Net Subs Voice Net Subs Total Subs
Q313 Total Net Subscribers (broadband & voice): 553.09K
Marginal Net Adds In Line with Tapering Investment in New WiMAX sites.
ARPU & Churns
Churn (%) ARPU (Postpaid, RM)
5.3 4.8 2.7
4.9 3.5 3.5 3.8
78 80
78
81 83 83 82
2013 Focus on Improving ARPU & Churn Pays Off
Revenue & EBITDA as of 3Q13
56.2
68.0 71.9 79.7 79.2 80.9
76.1 78.7 80.5 73.6 75.5
- 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
Net
Rev
enue
(RM
’mil)
Net Revenue
-25.8
-19.4 -16.6
-7.6
2.2 5.1 7.9 8.0 9.2 9.5 10.0
-30
-20
-10
0
10
20
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
Net
Rev
enue
(RM
’mil)
Net EBITDA
EBITDA-driven Business Transformation Strategy Delivers
Private & Confidential. Powered by Packet One Networks 14
3Q13 Marketing Campaigns Target Quality Subs
Increase ARPU per subscriber
Customer education through radio tie-ups
Targeted marketing through strategic partnerships
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Group Financial Performance
For the period ended
30 September 2013
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C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Key Financial Highlights 3Q 2013 Revenue (‘million) EBITDA (‘million)
Group 142
P1 76
(54%)
Alt Svs 40
(28%)
Solution 26
(18%)
Group 12.0
P1 8.8
Alt Svs 1.5
Solution 1.7
Revenue
RM142m Decreases by 11% YoY
EBITDA
RM12m Improves by 30% YoY
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Revenue
3Q13 Vs. 3Q12 : • Software & Devices: declines RM14.5million with slow down in WiMAX device shipment • Broadband Services: declines RM6.7million attributed to marginal growth and a strong
3Q12 due to bulk project deals and Universal Service Provision project revenue. • Communication/Voice Services: increases RM2.9m
-11% YoY growth
-6% QoQ growth
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Results from Operational Units
YoY Group EBITDA margin improves 30% due to higher communication services revenue; and cost and operational efficiency which resulted in:
Lower overall operating expenses in P1 & GP Lower sales & marketing costs in P1 & GP Lower direct costs in P1
QoQ growth +10% +114% +80% -55%
EBITDA +28% +27%
EBIDTA margin
EBITDA is before depreciation of PPE and amortisation of modem
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
Operational Losses
Operational Losses (After MI)
-40% YoY negative growth
+6% QoQ positive growth
-39% YoY negative growth
+19% QoQ positive growth
Results from Operational Units
• Losses decrease in 3Q13 as a result of cost optimization measures. • Broadband services losses increase for 3Q13 mainly due to higher interest costs from Kendall Court
and MDV financing amounting to a total of RM5.4 million.
C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .
2012 Financial Performance
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