Build a forecast income statement, and assess the implications and attempt to build an approximate, balance sheet and cash flow for the year 2019. Explain precisely your assumptions in revenue and expense build ups, gross profit expectations. Compare and contrast the key financial ratios for your forecast compared to current performance. Discuss likely implications for the company Balance Sheet and Cash Flow
A) Income Statement Income statement (Bt mn) 4017 3 018 4018 % YoY %QoQ FY17 F Y18 % YoY Mobile revenue Fixed broadband revenue Other service revenues Core service revenue 31.016 30,862 31,364 1.1% 956 1,117 1,212 27% 639 1,155 1,107 73% 32,611 33,134 33,683 3.3% 1,1073,1113,202 189% 33,717 36,245 36,885 9.4% 7,488 5,865 7.699 2.8% 1.6% 8.6% -4.1% 1.7% 2.9% 1.8% 31% 122,979 3,128 2,476 128,583 4,364 132,947 24,775 124,601 4,436 4.391 133,429 10,576 144,005 25,851 1.3% 42% 77% 3.8% 142% 8.3% 4.3% IC and equipment rental Service revenue SIM and device sales Total revenues 41,205 42,110 44,584 8.2% 5.9% 157,722 169,856 7.7% Regulatory fee Depreciation & Amortization Network operating expense Other costs of services Cost of service Cost of SIM and device sales (1,301) (1,429) (1,420) 9.2% (8,044) (8,401) (8,767) 9.0% (5.012) (7.223) (7.366) 47% (2,661) (2,781) (2,830) 6.3% (17,018) (19,835) (20,383) 20% (7.534) (6.189) (8,032) 6.6% (24,552) (26,023) (28,414) 16% 16,653 16,087 16,170 -2.9% (6,338) (6,794) (6,968) 9.9% (2,357) (2,426) (2,713) 15% (3,982) (4,368) (4,255) 6.9% -0.6% 4.4% 2.0% 1.7% 2.8% 30% 9.2% 0.5% 2.6% 12% -2.6% (6,272) (5,723) -8.7% (29,686) (33,282) 12% (20,080) (26,929) 34% (10,566) (10,766) 1.9% (66,604) (76,700) 15% (25,654) (26,756) 4.3% (92,259) (103,456) 12% 65,463 66,400 1.4% (25,078) (26,295) 4.9% (9,990) (9,550) -4,4% (15,088) (16,745) 11% Total costs of service and sale Gross profit SG&A Marketing Expense Admin and others Operating profit Net foreign exchange gain (loss) Other income (expense) Finance cost 10,315 21 223 (1,346) (1,512) (1.4) 9,293 9,202 -11% -1.0% 12129502% 939% 119 118 -47% -0.8% (1,277) (1,288) -4.3% 0.9% (1,345) (1,320) -13% -1.8% (1) (1) -7.7% 39% 40,385 225 613 (5,302) (5.843) (0.6) 40,105 -0.7% 119 -47% 560 -8.5% (5,148) -2.9% (5,923) 1.4% (32) 5125% Income tax Non-controlling interest Net profit for the period 7,701 6,800 6,839 -11% 0.6% 30,077 29,682 -1.3% STATEMENTS OF FINANCIAL POSITION ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES AS AT DECEMBER 31, 2018 UNIT : BAHT NOTES CONSOLIDATED FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS As at As at As at As at December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 ASSETS Current assets 330,502,410 268,320,789 5 6,34 9,066,888,356 2,220,542,185 19,241,653,605 10,650,407,393 2,642,633,529 17.071,011.926 1.786,094,183 48,669,000,000 2,219,344,855 39,533,900,000 Cash and cash equivalents Specifically designated bank deposits Trade and other current receivables Short-term loans to related parties Inventories Current tax assets Other current financial assets Other current assets 67.950,252 3,822,985,486 116,987,006 5,772,175 429,844,303 34,904,673,116 3.950,534.972 197,610,371 82,917.264 245,744,406 34,840,859,861 65,202,979 226,433,800 321,083 42,313,523,506 53,738 50,853,600,583 Total current assets Non-current assets Investments in an associate 17,793,644 30,728 921 22,158,565,396 22.650,469.852 Investments in subsidiaries Investments in joint ventures 735,995,899 59,976,210 130,211,973,802 Other long-term investments 58,535,887 59,399,310 132,579,258,894 Financial report 47.999,310 217,277,086 47.999,310 253,637,085 14 Property, plant and equipment Assets under the Agreements for operations Goodwill Spectrum licenses Other intangible assets Deferred tax assets Other non-current assets Total non-current assets Total assets 16 2,881,699,659 34.930,692 111,749,059,137 107,523,563,565 5,091,828,807 4.499,186,068 3,210,339.722 2,562,435,786 1,641.645,473 1,878,455,284 255,600,312,353 249 226,494,407 290,504,985,469284,067,354,268 17.336,436 612,954,066 498,214,691 2 3,552,346,985 74,405,947,568 27,822,959 559,933,360 452,448,823 23,992,311,389 66,305,834,895 STATEMENTS OF FINANCIAL POSITION (CONTINUED) ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES AS AT DECEMBER 31, 2018 UNIT BAHT NOTES CONSOLIDATED FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS Asat Asal December 31, 2018 As at December 31, 2017 Asal December 31, December 31, 2018 2017 17 18,34 39 5,900,000,000 37.679,694,758 5,361,818,613 3,963,530,920 2,220.542,185 11.203.598,605 3 971.753.447 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings from financial institutions Trade and other current payables Accrued revenue sharing expenses Unearned income mobile phone service Advanced received from customers Current portion of long-term liabilities Current portion of spectrum licenses payable Short-term borrowings from related parties Current income tax payable Other current liabilities Total current liabilities 6,500,000,000 32.140,894,338 5,361,818,613 3.409,682,237 2,642,633,529 3,075,569.159 13,988,910,603 2.900,000,000 2.846,503.529 5.221.244.442 9,177,072 2.791.995.986 5,221,244.442 9.183.807 10,504.755 3,038,063.962 5 17 19 17,34 4.920,000,000 4,640,000,000 2.412.564.709 50,952.575 72.764,455,812 2.456,516,299 24.750.899 6 9.600,775,677 3.539.189 15,910,968,987 3.682.936 15.704.171.133 Financial report 92,029,626,131 2,253,764,390 63,516,140,746 25.999,851 263,096,606 29,090,497 235,339,712 Non-current liabilities Long-term liabilities Provisions for employee benefit Spectrum licenses payable Other non-current financial liabilities Other non-current liabilities Total non-current liabilities Total liabilities 100,101,849,676 1,855,646,009 59,960,851.091 117,672,750 2,003,771,342 164,039,790,868 233,640,566,545 16.386 900 16.878.900 2,272,417,625 160,071,948,892 232,836,404,704 305.483,357 16,216,452 344 281,309,109 15,985,480, 242 Shareholders' equity Share capital Authorized share capital 4.997 million ordinary shares of Baht 1.00 each Issued and paid share capital 2,973 million ordinary shares of Baht 1.00 each, fully paid 4.997.459.800 4.997.459,800 4,997,459,800 4,997,459,800 2,973,095,330 2.973,095,330 2,973,095,330 2,973,095,330 21 22,372,276,085 22,372,276,085 22,372,276,085 22,372,276,085 37 (668,455,415) Share premium Share premium on ordinary shares Other delicits Deficits arising from change in ownership interest in a subsidiary Retained earnings Appropriated Legal reserve Unappropriated Other components of shareholders' equity Total shareholders' equity attributable to owners of the Company Non-controlling interests Total shareholders' equity Total liabilities and shareholders' equity 500,000,000 32.005.107,623 339,016,186 500,000,000 24.174.742,689 300,240,549 500,000,000 32,005.107.623 339,016,186 500,000,000 24.174.742,689 300,240,549 58.189.495,224 50,320,354,653 57,521,039,809 50,320,354,653 147.540,956 106,433,070 57,668,580,765 50,426,787,723 290,504 985469284,067,354268 58.189.495,224 74 405.947,568 50,320,354,653 66,305,834,895 Notes to the financial statements for an integral part of these statements A) Income Statement Income statement (Bt mn) 4017 3 018 4018 % YoY %QoQ FY17 F Y18 % YoY Mobile revenue Fixed broadband revenue Other service revenues Core service revenue 31.016 30,862 31,364 1.1% 956 1,117 1,212 27% 639 1,155 1,107 73% 32,611 33,134 33,683 3.3% 1,1073,1113,202 189% 33,717 36,245 36,885 9.4% 7,488 5,865 7.699 2.8% 1.6% 8.6% -4.1% 1.7% 2.9% 1.8% 31% 122,979 3,128 2,476 128,583 4,364 132,947 24,775 124,601 4,436 4.391 133,429 10,576 144,005 25,851 1.3% 42% 77% 3.8% 142% 8.3% 4.3% IC and equipment rental Service revenue SIM and device sales Total revenues 41,205 42,110 44,584 8.2% 5.9% 157,722 169,856 7.7% Regulatory fee Depreciation & Amortization Network operating expense Other costs of services Cost of service Cost of SIM and device sales (1,301) (1,429) (1,420) 9.2% (8,044) (8,401) (8,767) 9.0% (5.012) (7.223) (7.366) 47% (2,661) (2,781) (2,830) 6.3% (17,018) (19,835) (20,383) 20% (7.534) (6.189) (8,032) 6.6% (24,552) (26,023) (28,414) 16% 16,653 16,087 16,170 -2.9% (6,338) (6,794) (6,968) 9.9% (2,357) (2,426) (2,713) 15% (3,982) (4,368) (4,255) 6.9% -0.6% 4.4% 2.0% 1.7% 2.8% 30% 9.2% 0.5% 2.6% 12% -2.6% (6,272) (5,723) -8.7% (29,686) (33,282) 12% (20,080) (26,929) 34% (10,566) (10,766) 1.9% (66,604) (76,700) 15% (25,654) (26,756) 4.3% (92,259) (103,456) 12% 65,463 66,400 1.4% (25,078) (26,295) 4.9% (9,990) (9,550) -4,4% (15,088) (16,745) 11% Total costs of service and sale Gross profit SG&A Marketing Expense Admin and others Operating profit Net foreign exchange gain (loss) Other income (expense) Finance cost 10,315 21 223 (1,346) (1,512) (1.4) 9,293 9,202 -11% -1.0% 12129502% 939% 119 118 -47% -0.8% (1,277) (1,288) -4.3% 0.9% (1,345) (1,320) -13% -1.8% (1) (1) -7.7% 39% 40,385 225 613 (5,302) (5.843) (0.6) 40,105 -0.7% 119 -47% 560 -8.5% (5,148) -2.9% (5,923) 1.4% (32) 5125% Income tax Non-controlling interest Net profit for the period 7,701 6,800 6,839 -11% 0.6% 30,077 29,682 -1.3% STATEMENTS OF FINANCIAL POSITION ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES AS AT DECEMBER 31, 2018 UNIT : BAHT NOTES CONSOLIDATED FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS As at As at As at As at December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 ASSETS Current assets 330,502,410 268,320,789 5 6,34 9,066,888,356 2,220,542,185 19,241,653,605 10,650,407,393 2,642,633,529 17.071,011.926 1.786,094,183 48,669,000,000 2,219,344,855 39,533,900,000 Cash and cash equivalents Specifically designated bank deposits Trade and other current receivables Short-term loans to related parties Inventories Current tax assets Other current financial assets Other current assets 67.950,252 3,822,985,486 116,987,006 5,772,175 429,844,303 34,904,673,116 3.950,534.972 197,610,371 82,917.264 245,744,406 34,840,859,861 65,202,979 226,433,800 321,083 42,313,523,506 53,738 50,853,600,583 Total current assets Non-current assets Investments in an associate 17,793,644 30,728 921 22,158,565,396 22.650,469.852 Investments in subsidiaries Investments in joint ventures 735,995,899 59,976,210 130,211,973,802 Other long-term investments 58,535,887 59,399,310 132,579,258,894 Financial report 47.999,310 217,277,086 47.999,310 253,637,085 14 Property, plant and equipment Assets under the Agreements for operations Goodwill Spectrum licenses Other intangible assets Deferred tax assets Other non-current assets Total non-current assets Total assets 16 2,881,699,659 34.930,692 111,749,059,137 107,523,563,565 5,091,828,807 4.499,186,068 3,210,339.722 2,562,435,786 1,641.645,473 1,878,455,284 255,600,312,353 249 226,494,407 290,504,985,469284,067,354,268 17.336,436 612,954,066 498,214,691 2 3,552,346,985 74,405,947,568 27,822,959 559,933,360 452,448,823 23,992,311,389 66,305,834,895 STATEMENTS OF FINANCIAL POSITION (CONTINUED) ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES AS AT DECEMBER 31, 2018 UNIT BAHT NOTES CONSOLIDATED FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS Asat Asal December 31, 2018 As at December 31, 2017 Asal December 31, December 31, 2018 2017 17 18,34 39 5,900,000,000 37.679,694,758 5,361,818,613 3,963,530,920 2,220.542,185 11.203.598,605 3 971.753.447 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings from financial institutions Trade and other current payables Accrued revenue sharing expenses Unearned income mobile phone service Advanced received from customers Current portion of long-term liabilities Current portion of spectrum licenses payable Short-term borrowings from related parties Current income tax payable Other current liabilities Total current liabilities 6,500,000,000 32.140,894,338 5,361,818,613 3.409,682,237 2,642,633,529 3,075,569.159 13,988,910,603 2.900,000,000 2.846,503.529 5.221.244.442 9,177,072 2.791.995.986 5,221,244.442 9.183.807 10,504.755 3,038,063.962 5 17 19 17,34 4.920,000,000 4,640,000,000 2.412.564.709 50,952.575 72.764,455,812 2.456,516,299 24.750.899 6 9.600,775,677 3.539.189 15,910,968,987 3.682.936 15.704.171.133 Financial report 92,029,626,131 2,253,764,390 63,516,140,746 25.999,851 263,096,606 29,090,497 235,339,712 Non-current liabilities Long-term liabilities Provisions for employee benefit Spectrum licenses payable Other non-current financial liabilities Other non-current liabilities Total non-current liabilities Total liabilities 100,101,849,676 1,855,646,009 59,960,851.091 117,672,750 2,003,771,342 164,039,790,868 233,640,566,545 16.386 900 16.878.900 2,272,417,625 160,071,948,892 232,836,404,704 305.483,357 16,216,452 344 281,309,109 15,985,480, 242 Shareholders' equity Share capital Authorized share capital 4.997 million ordinary shares of Baht 1.00 each Issued and paid share capital 2,973 million ordinary shares of Baht 1.00 each, fully paid 4.997.459.800 4.997.459,800 4,997,459,800 4,997,459,800 2,973,095,330 2.973,095,330 2,973,095,330 2,973,095,330 21 22,372,276,085 22,372,276,085 22,372,276,085 22,372,276,085 37 (668,455,415) Share premium Share premium on ordinary shares Other delicits Deficits arising from change in ownership interest in a subsidiary Retained earnings Appropriated Legal reserve Unappropriated Other components of shareholders' equity Total shareholders' equity attributable to owners of the Company Non-controlling interests Total shareholders' equity Total liabilities and shareholders' equity 500,000,000 32.005.107,623 339,016,186 500,000,000 24.174.742,689 300,240,549 500,000,000 32,005.107.623 339,016,186 500,000,000 24.174.742,689 300,240,549 58.189.495,224 50,320,354,653 57,521,039,809 50,320,354,653 147.540,956 106,433,070 57,668,580,765 50,426,787,723 290,504 985469284,067,354268 58.189.495,224 74 405.947,568 50,320,354,653 66,305,834,895 Notes to the financial statements for an integral part of these statements
