ls sample panel presentation

8/8/2019 LS Sample Panel Presentation

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Table of contents goes here


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INTRODUCTION


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SIGNIFICANCE & SCOPE

Bettina, send me. :D


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THE BROADBAND INDUSTRY

The Internet has been around since the 1980s

people used to connect to the internet using their hometelephone wires using the so called dial-up system

BEFORE

NOW

Broadband breathed new life into the Internet

Early broadband prices were expensive & business launches wereslow

ISPs nowadays compete with each other


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BACKGROUND HISTORY

Sun Cellular has been up for almost 4 years. It is so far the fastestgrowing mobile network in the Philippines having technologiesand infrastructure of almost 6-8 years as of that of itscompetitors.

But coming late into the market may be a little tough for Sun.


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BACKGROUND HISTORY

MARCH 2003 DECEMBER 2008

Sun Cellular began operations inmajor cities of the Philippines

Sun has reached 8 million subscribers in fiveyears of ser vice, still, the fastest growingnetwork in the Philippines to date.

Browsing rate is now 10 Php for 30 minutes.

Sun now boast of 4000+ towers in both 3GUMTS and GSM

Affordable broadband service is now availablefor 799 a month unlimited* with maximumspeeds of 2mbps.


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BOARD OF DIRECTORS

Ricardo J. Romulo - ChairmanJames L. Go

John L. Gokongwei, Jr.Lance Y. Gokongwei

Anders EkmanAntonio L. Go - Independent Director

Octavio Victor R. Espiritu - Independent Director


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OWNERSHIP ANDMANAGEMENT PROFILE

UN CELLULAR PHILIPPINES

Type Subsidiary

Founded Manila Philippines (2003)

Headquarters Quezon City Philippines

Key people Charles A. Lim, President and CEO

Industry Mobile Telecommunications & Broadband

Parent Digitel Communications Philippines


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BOARD OF DIRECTORS

Ricardo J. Romulo - ChairmanJames L. GoJohn L. Gokongwei, Jr. Lance Y. Gokongwei Anders Ekman Antonio L. Go - Independent Director Octavio Victor R. Espiritu - Independent Director


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MISSION AND VISION

MISSION VISION

Committed to nation buildingand countryside development,

we provide reliablecommunication access throughseamless connectivity linking

Filipinos to each other and tothe rest of the world.

To be the most preferredfull service

telecommunicationsprovider in the country.


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THE INDUSTRY


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INDUSTRYS EFFECT ON GDP

franchising industry: 5% of GDP retail industry: 15% of GDP

telecom industry: 1% of GDP

agriculture, fishery and forestryindustry: 17.8% of GDP


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PRODUCT VARIETIES OFFEREDAND PRICES RANGE

S U N C E L L U L A R B R O A D B A N D

SubscriptionEasy Broadband

Plan 799**

SBW Plan 799 SIM

OnlySBW Plan 799

SBW Plan 649

Bundle

Burstable Speed* 2Mbps

Usage Allowance Unlimited***

Monthly Service

FeeP799 P799 P799

Additional P649/

month on top ofPostpaid MSF

One-Time Modem

ChargeP2,500 N/A WAIVED WAIVED

Holding Period No Holding Period 6 Months 24 Months 24 Months


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S M A R T B R O A D B A N DOFFER PLAN 999 PLAN 799 PREPAID

SPEED Up to 384 kps Up to 2 Mbps Up to 2 Mbps

# OF HOURSUSE

UNLIMITEDUp to 60 hours free per

monthPay per use for

connection P10 for

every 30 minutes

CONNECTIONFixed wireless connection

(free installation fee) Wireless Connection Wireless Connection

REQUIREMENTSSubscriber Application Form,

Proof of Identification

Subscriber Application Form, Proofof Address, Proof of Identification,

Financial Documents

NONE

TOTAL INITIAL

PAYMENTPhp999

Php 1,598 (2 months advance

service fee)

LOCK-INPERIOD

12 months 24 months


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G L O B E B R O A D B A N D

OFFER PACKAGE PURKS

Plan Php 995 Up to 384 kbps Internet +Landline

* Waived installation fee!

PlanPhp1,295

Up to 1 Mbps Internet +Landline

o a vance paymen

* No NDD charges if you callanother Globe Landline

PlanPhp1,995

Up to 2 Mbps Internet +Landline

GlobeBroadband

Prepaid Visibility

Surf the Internet for only Php 5.00per 15 minutes for up to 2 Mbps!

* Prepaid kit for Php 2,500 only!* Free initial 1.5 hours of internet surfing!


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EXTENT AND INTENSITYOF ADVERTISING

Advertisements through commercials and internet

sites Sun promotes the affordability of products

Globe promotes through giving free additions

Digitel budgets P12 billion this year for networkexpansion

mobile advertising and marketing grossed $3 billionglobally in 2007, and is expected to grow to $19billion by 2011


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OPERATING PRACTICES

G L O B E T E L E C O M M U N I C AT I O N S

A. MISSION VISION

Transforming andenriching lives

throughcommunications.

Globe is indispensable to peoples lives -We provide our customers with superior experience.

We are a center of excellence for innovation worldwide.We create a rewarding environment where people strive for

excellence and grow.We attract people who are innovative, passionate and

results-oriented.We create superior value for our shareholders.

We make great things possible.


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OPERATING PRACTICES

G L O B E T E L E C O M M U N I C AT I O N S

B. INCREASED VALUES AND RETURNS

C. CORE VALUES

Customer FirstAccountabilityExcellence InnovationTeamwork Integrity

D. PREPAID, POSTPAID, GLOBELINES

E. QUALITY OF CUSTOMER SERVICE


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OPERATING PRACTICES

Affiliated with PLDT Makes life more accessible for the people

Smart Money

Smart Bro

Quality of Customer Service

S M A R T T E L E C O M M U N I C AT I O N S


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OPERATING PRACTICES

by JG Summit Holdings Inc.

major provider of wirelines in the country

provides reliable communication access

great promotions

competes with the biggest competitors

Sun broadband

D I G I T E L T E L E C O M M U N I C AT I O N S


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FINANCIAL STRATEGIES

(in thousands) 2003 2004 2005 2006 2007

Net Service

Revenues* 47,535 52,741 54,897 52,209 63,209

Net Income 9,953 11,396 10,315 11,755 13,277

CapEx 16,372 21,297 15,122 14,880 13,922

MarketCapitalization* 1E+05 133,608 96,957 163,119 207,764

G L O B E T E L E C O M


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FINANCIAL STRATEGIES

S M A R T T E L E C O M

(in millions) 2003 2004 2005 2006 2007

Net Service

Revenues* 100.6 115.5 121.1 125 135.5

Net Income 1,347 28,221 34,135 35,138 36,004

CapEx 18,019 21,162 14,990 20,674 24,824

MarketCapitalization* 164 232 332 481 599

* In billion pesos**Increase in Market Capitalization is due to increase in allocation ofbudget for promotional materials.

GROWTH AND EXPANSION


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GROWTH AND EXPANSIONSTRATEGIES

innovation

of transforming their products and services tothe next level

of making the consumers happy and satisfied.

Aims for :



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SUN GLOBE SMART

Product/MarketDevelopment

1.Transforming

more thanupgrading.2. Holistic

development ofsubscribers.

3. Provide morethan a form ofcommunication

transport.

1. Simplification ofcommunicationtechnologies.2. Creation of

relevant productsand services.

1. Creation ofSmart Business

Solutions.2. Offering widerange of services.



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SUN GLOBE SMART

Research andDevelopment &

IndustryInnovations

Networkinfrastructuresinvestments.

Partnerships withdifferent

industries.

Customization ofproducts and

services.



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SUN GLOBE SMART

Diversification ofDominant

Players

Their Mission:Transforming and

enriching livesthrough

communications.

Their Mission:Committed tocountryside

development andnation building.

Their Mission:To be the truemeasure andstandard of

leadership ineverything they do.


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THE FIRM

MARKETING AND


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MARKETING ANDSALES MANAGEMENT

started the unlimited services in the Philippines

invests P300 million every year in network infrastructure

offers most reasonable prices

reached different major cities and provinces here in our countryand outside

OPERATIONS


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OPERATIONS

Digitel Mobile Philippines Incorporated is a mobile

telecommunication provider in the Philippines Began March 2003

more than 1,300 operating cell sites

1.8 million subscribers

24/7 call and text unlimited

SERVICE AND GOALS


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SERVICE AND GOALS

The 24/7 Unlimited Service and the Reload service

BIGGER MARKET


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BIGGER MARKET

Major Network Expansion

Investment of $200 million

Increase in Customers

LOCATIONS


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LOCATIONS

136 stalls 84 stores in Metro Manila

9 stores in Visayas

10 in Mindanao

Sari-Sari Stores

PROMOTIONS


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PROMOTIONS

$200 million budget Sulit Load for P25

Post-Paid Packages

Unlimited Services

HUMAN RESOURCE


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HUMAN RESOURCE

bonded by the same vision and arebounded by the same values and goals

R E C R U I T M E NT A N D S E L E C T I O N


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HUMAN RESOURCE


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HUMAN RESOURCE

Sponsored Travels

Gift Tokens

Courtesy Discounts

Entertainment/Leisure Packages

Hospitality and Meals

Cash, cash/check certificates, or other cash equivalents

C O M P E N S A T I O N A N D B E N E F I T S

FINANCIAL MANAGEMENT


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2006 2007 YoY %

Revenues (P000) 11, 294,108 16, 745,658 48.27

EBITDA margin 24.19% 24.2% -0.04

EBIT margin -41.13% -13.88% 196.29

Cash flow provided byoperating activities (P000)

396, 686 1, 444,174 -72.53

Debt to equity ratio 5.94 9.42 -36.98

Key Performance Indicators (Sun Cellular)

The increase in service revenue is due toforeign exchange and market valuation gains.



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2006 2007

Current/ Working CapitalRatio

0.32 0.55

Key Performance Indicators (Sun Cellular)

Even if there is a fall on revenue, there is a

74.0% increase in revenue of broadband service.



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(in millions of pesos) 2005 2006 2007

Cost and Expenses 10, 845 14, 053.5

Net Income (Loss) (1, 589.6) ( 9 62.9) 1, 170.5

Service Revenue ** 10, 507.5 11, 294.1 16, 745.7

Net Cash Flow 3, 688.9 1, 444.2 396.7

EBITDA 2, 801.6 1, 847.9 2, 010.7

Capital* 3, 067,412 1, 896,947

The Current Standing of the Firm (Sun Cellular)

*In thousand pesos** Increase in revenue is due to foreign exchange and market valuation gains.

Also, there is a 74% increase in Broadband revenue that is already above.


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CONCLUSION

INDUSTRY ANALYSIS


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relatively new

entered during the hype of Globe and Smart differentiating a companys offerings from the other companies in the industry

focusing on the standardization of their products and services

success in market: growth in sales due to increase of demand

intense market rivalry surfaced

companies now promote similar products and services which results to strongcompetition

constant upgrades of features and services

I N D U S T R Y L I F E C Y C L E A N A L Y S I S

GROWTH PHASE

INDUSTRY ANALYSIS


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S W O T A N A L Y S I S

STRENGTHS WEAKNESS OPPORTUNITIES THREATS

Affordability

Package deals

Signal Coverage

Customer CareServices

Service Centersare mediocre

Applicationprocesses

Underdogs havetheir benefits

Low expectationsgive them theadvantage to gobeyond what isexpected

Creating anindependent brand

Veteran majorplayers are at aknow of theindustry

Followers of thecurrent trend &bandwagon

Loyalty ofCustomers

INDUSTRY ANALYSIS


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Reliable Bargaining Power of Supplier

Strong bargaining power of consumer

Threat of substitute is weak

Small number of competitors

Competition is stiff

P O R T E R S F I V E F O R C E S

INDUSTRY ANALYSIS


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network broadening

variety of package deals

widened coverage and network

customer satisfaction

affordability

K E Y S U C C E S S F A C T O R S

RECOMMENDATIONS


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Diskarte na ba toh issa? XD