Advanced Info Service Plc. Non-deal Roadshow EU-UK, March 2014 AIS - PowerPoint PPT Presentation

Advanced Info Service Plc. Non-deal Roadshow EU-UK, March 2014

AIS at glance No.1 52% revenue market share 16m 3G-2.1GHz users mobile operator in Thailand 41m users Breakdown of Service Revenue Breakdown of customers Quick introduction • Officially launched 3G-2.1GHz service in May-13 and expanded coverage to all 77 provinces with 80% population coverage under a 15-year license of 2x15MHz bandwidth. • Provide nationwide 2G network on 900MHz under Built-Transfer-Operate contracts which will be expired in Sep-15. • Provide 2G network on 1800MHz under NBTC’s one year remedy after the Built-Transfer- Operate contracts ended in Sep-13 2

Deliver both growth & shareholder return Transitional period of telecom industry Unleash Better Secure Growth data capacity cost structure business operation Bt28bn used to build new Transition from unlock concession expiry network in 2013 concession to license system 3G license 3G license on on 2.1GHz 2.1GHz Shareholder Bt51bn 0.19X 100% Dividend shall not return exceed the retained operating net debt Dividend earnings in separated cash flow to equity payout financial statement . in 2013 in 2013 3

FY13 financial highlight (Unit: Bt mn) Service revenue ex. IC EBITDA Sales revenue 112,528 63,691 18,995 +4% 61,436 108,336 17,695 +7% +4% FY12 FY13 FY12 FY13 FY12 FY13 % Service margin % EBITDA margin Net profit 36,274 50.5% 44.6% 48.4% +4% 34,883 43.4% +210 +120 bps bps FY12 FY13 FY12 FY13 FY12 FY13 4

Building the BEST 3G network FY13 FY14 3G BTS 13,200 20,000 95% population coverage 80% Bt28bn Bt40bn CAPEX In-building Join hands with properties developers The best 3G network in Bangkok Dense area e.g. JJ market, Siam Square 3,900 BTS Deploy additional small cells to Jan-14 improve customer experience 5

3G Strategies The best 3G network at competitive price 50% using 3G devices 50% 2G 2014 target 25% 3G subscribers 3G 3G 75% 75% Push Increase 3G migration & subscription 3G handset adoption 7 %  700 direct sales  Dealers’ incentive  Customer touch points • AIS 3G centers 0 % • Shop expansion & renovation FY14 FY13 ZERO Mid- to low-end Distribution channel handset margin smartphone + package 6

Affordable 3G models lined up Acer Liquid Z5 Galaxy Pocket Neo Acer Liquid Z3S Bt4,790 Bt2,900 Bt2,590 87.5GBP/106.2EUR/938SEK 53GBP/64.3EUR/568SEK 47.3GBP/57.4EUR/507SEK Nokia Asha 503 Sony Xperia E LG Optimus L1ll Dual Samsung Hero 3G Bt2,990 Bt2,990 Bt1,990 Bt1,390 54.6GBP/66.3EUR/585SEK 54.6GBP/66.3EUR/585SEK 36.4GBP/44.1EUR/389SEK 25.4GBP/30.8EUR/272SEK 1 GBP:54.72 THB/ 1 EUR:45.10 THB/ 1 SEK:5.11 THB 7

Benefit from rising 3G adoption Regulatory fee saving 20-30% 5.25% VS Revenue sharing on 900/1800MHz License fee on 2100MHz BTO agreement Regulatory fee % 3G Revenue % to service revenue include net IC 26% 20% 23% Bt29bn  7.9% Bt26bn YoY 0% FY12 FY13 FY12 FY13 Lower regulatory fee 3G subscribers reached 40% from 3G migration of total subs in FY13 8

2014 guidance 6 – 8% 75% 44% Consolidated Service revenue 3G 2.1GHz subscribers EBITDA margin (excluding IC) (50% using 3G devices) • Contracted voice market • Accelerated non ‐ voice growth 53% Bt40 bn 18% Depreciation Service margin FY14 CAPEX & Amortization (+300bps) • 95% population coverage Incl. network, license fee, and • 20k 3G BTS & additional small cells fixed asset in SG&A • Faster fiber optic rollout • AIS shop expansion & renovation 9

Future growth 3G 3G 75% 75% 900/1800MHz BTO Wired-broadband assets services Target DENSE • 1800MHz • residential areas for 4G LTE Leverage extensive • 900MHz • nationwide fiber to strengthen 3G network transmission Minimal investment • in last mile extension Capture potential growth in the future 10

Appendix 11

Depreciation & Amortization Breakdown of D&A Rising 3G investment will result in higher D&A but partly offset by lower 2G amortization +18% Bt16.5bn Bt0.9bn 3G 2.1GHz license amortization Bt0.9bn The value of 2G network assets >Bt3bn 1800MHz operational Bt0.4bn will be depleted in FY15 right amortization 3G 2.1GHz networks Bt3bn depreciation Bt20.5bn 2G assets ~ Bt11bn Bt12bn amortization Bt0 SG&A >Bt0.2bn Bt0.2bn FY14 FY15 FY13 depreciation FY13 FY14 Asset under BTO (2G assets) 12

Tier pricing – volume base Fair usage policy: no real unlimited data offers Voice Throttling Wifi Monthly fee Data (minutes) 500MB Bt299 100 64Kbps unlimited unlimited 750MB 150 64Kbps unlimited Bt399 unlimited 1.5GB Bt599 300 64Kbps unlimited unlimited 2GB Bt799 400 128Kbps unlimited unlimited 3GB Bt999 500 256Kbps unlimited unlimited 13

3G device bundling promotions For postpaid subscribers buying new 3G handset 50% package discount for 6 months Low-ends Mid-ends High ends smartphone smartphone smartphone Bt399 Bt599 Bt799 Bt999 Bt199 Bt299 Bt399 Bt499 3G handsets discount Condition: • subscribes monthly package • pays 6 months package upfront fee 14

Innovative price packages iF AIR 2049MB-4GB data package < Bt799 automatically adjusted 1025MB-2GB package to match < Bt599 actual usage 301MB–1GB < Bt399 91 –300MB < Bt199 90MB Bt99 Daily Weekly Monthly Mao 3G Bt249 Bt239 Bt15 Mao unlimited 300MB on-top data package 20MB segmented 1GB for 3G speed pricing matching Bt799 Bt9 Bt49 Bt59 individual needs unlimited 10MB unlimited 70MB 160MB for 3G speed 4GB for 3G speed 15

Social Life F un Life Local Life Privileges App Free Google Internet Music Store (HD) Discover nearby privileges Google Free Search, Chat, Plus 50k+ HD music & concerts Unlimited Social Life Movie Store (HD) Guide & Go FB, Whatsapp, LINE Package The largest movie store World first Social Navigator myCloud Bookstore Store your digital assets Oct ‐ 13 mPay MasterCard The largest Thai e ‐ bookstore Online shopping for everyone PhotoBox Game Zone Discover photos that matter Unlimited Game Play mPay Rabbit Nov ‐ 13 Bring convenience to mySticker Shop mass transit and beyond Live TV 1000+ LINE Stickers 30+ Live TV channels Calling Post GMMz on AIS Entertainment Express feeling on the phone Aug ‐ 13 EPL on mobile Newsloop English Premier league Discover the best of Thailand and the world James Ji Live 16

Consolidated income statement Revenue 4Q13 Bt million/ % to total revenue 17

Consolidated income statement Costs & Expenses 4Q13 Bt million/ % to total revenue 18

Consolidated income statement Revenue FY13 Bt million/ % to total revenue 19

Consolidated income statement Costs & Expenses FY13 Bt million/ % to total revenue 20

Financial position Bt million/ % to total asset 21

Key financial ratio 22

Cash Flow FY13 AIS Investor Relations http://investor.ais.co.th Investor@ais.co.th 23