Investor Presentation 14 Aug 2020 15.15 16.00 pm BKK time 1 - PowerPoint PPT Presentation

Investor Presentation 14 Aug 2020 15.15 – 16.00 pm BKK time 1

Agenda 2Q20 Performance • Post COVID-19 strategies • 2

Financial Performance 3

2Q20 Performance: NPAT declined YoY from the pandemic but increasing QoQ from SG&A saving Core service revenue (Bt mn) Core service revenue (Bt mn) • Core service revenue impacted -2.4%QoQ from lockdown to mobile business +22% -7.8% -6.4% YoY offset by growing demand on FBB 33,090 32,285 resulted in decrease -6.4%YoY. • EBITDA was flat YoY from 1Q20 2Q20 decreased revenue offset by cost EBITDA (Bt mn) PRE TFRS16 saving. -2.2%QoQ • NPAT -6.7%YoY from continued 19,576 19,139 investment in new spectrum. Profitability (Bt mn) 1Q20 2Q20 -4.1% -4.3% -15% flat +7.8% NPAT (Bt mn) PRE TFRS16 -9.2% -6.7%YoY +3.3%QoQ 7,004 7,235 POST 7,001 6,756 TFRS16 1Q20 2Q20

Mobile revenue impacted from lock down and competition Net subscriber addition (‘000) % Mobile Revenue Contribution Mobile revenue (Bt bn) Prepaid Postpaid Prepaid Postpaid IR & IDD 350 396 250 208 -4.5% YoY 106 -7.8% YoY 62.7 33 43% 48% -2.6% QoQ 59.9 3% 2% 32.0 (115) (276) 54% 30.3 50% 29.5 (532) (891) 2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20 • The decrease in prepaid subscribers resulted from 2Q19 1Q20 2Q20 1H19 1H20 • Lower IR& IDD contribution following lock down tourist segment and weak consumption, while • Postpaid revenue mix continued to expand postpaid gained from migration from prepaid. • Mobile revenue was negatively affected by price competition and COVID-19 impact. % Mobile Subscriber Contribution Mobile ARPU (Bt/sub/month) • Travelers segment revenue continued to Prepaid Postpaid Postpaid 537 537 531 525 523 decline due to international travel -2.7% YoY restriction. -0.4% QoQ 23% 21% 182 179 173 • NBTC’s mandate on free data and free 162 Prepaid 156 79% 77% -14% YoY voice in 2Q20 caused significant drop in -3.9% QoQ top-up, while the compensation from NBTC partially covered. 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 2Q20 • • Pre-to-post migration has resulted in a larger Postpaid revenue was able to withstand • Declining trend ARPU from price competition and the pandemic from larger sub base. proportion of postpaid subscribers from 21% in the effect of the NBTC ’ s campaign 2Q19 to 23% in 2Q20. 5

High demand for fixed broadband from Work-from-home trend Robust subscriber growth driven by Work-from-home trend FBB had strong growth +20% YoY Continued expansion of FBB revenue base FBB revenue (Bt mn) YoY growth +25% YoY 1,203 1,090 1,038 937 32% 30% 27% 26% 855 22% 3,323 2,669 1,683 1,640 1,579 1,475 Net addition (‘000) 1,380 112 101 82 Ending subscriber 60 53 (‘000) 2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20 2Q19 3Q19 4Q19 1Q20 2Q20 • FBB subscribers grew double-digit with 112k net addition in 2Q20, • FBB revenue was driven by subscriber gain offsetting lower ARPU due record high since inception from demand of Work-from-home to price competition. Geared toward long-term growth ARPU continued to decline from small package -12% YoY • AIS fibre expanded nationwide network coverage in 77 cities. 558 -4.8% QoQ 549 533 • Cover 8mn home-pass out of 22mn households in Thailand 514 489 ARPU FMC, 47% (Bt/sub/month) 2Q19 3Q19 4Q19 1Q20 2Q20 • Gain market share with competitive fibre pricing • Leverage mobile subscriber base with targeted • FBB APRU continued downward trend as Work-from-home package at Non-FMC, 53% offering Bt399 for 100/100Mbps was dominating the FBB market. of 1.2mn subscribers *FMC subscribers are FBB subscribers on bundling package with mobile service. 6

COVID-19 impact on 2Q20 Ease of lockdown show improved trend in June Accelerated digital transformation • Moving toward online channel %YoY Service revenue %Top up & Payment 2.6% Postpaid Subscriber %Top up & Payment via 2.2% self-service channel * amount via online channel acquisition via online Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Prepaid top-up Prepaid top-up Postpaid bill payment Postpaid bill payment -4.1% -4.5% -7.3% -7.6% 79% 78% 75% 75% 13 58% % 65% 48% • Following ease of lockdown, revenue started to 35% stabilize and June showed slight rebound 3.3% MoM. < 4% 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 %Bad debt provision to postpaid & FBB revenue *Self-service channel: online + machine • Expand active users on digital product and service platform 5.4% 5.1% 4.9% 4.9% 4.9% 4.8% • Grew AIS Play user base with 2.3mn active users • Added attractive original content and acquire best premium contents New launch in 2Q20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 ‘ beIN SPORTS’ channel • • After resuming collection process, % bad debt provision Device expansion to high-ended box,”Apple TV” • improved since May • Now available on SAMSUNG smart TV 7

1H20 Performance: COVID-19 impact to revenue offsetting with cost measures Revenue contribution Core service revenue (Bt mn) • Core service revenue affected by COVID-19 especially in -4.5% +25% -3.2% YoY mobile business while fixed FBB broadband was the beneficiary 5% Mobile 3% Other stimulated by demand to work- 92% from-home. • EBITDA grew +1.8%YoY in the 1H20 amidst pandemic due to Profitability (Bt mn) cost measures. -2.6% -5.4% -7.3% +1.8% +9.6% • NPAT -7%YoY as AIS continued to invest in network and flat -7% -10%YoY spectrum for both 5G and 4G. 8

2020 Guidance FY2020 Rationale • Revenue to rebound in 2H20, but still declining YOY from Low single digit weak private consumption and pricing pressure Core service revenue • Maintain mobile revenue market share with similar decline growth rate as industry • EBITDA growth in line with revenue growth from cost Low single digit EBITDA saving measures implemented decline Approximately CAPEX • Continue to invest for long term leading position Bt35bn *exclude spectrum 9

Key y strate tegie ies s for or Pos ost t Covid id-19 19 10

2020 Strategic Priorities • Lead the industry with 5G infrastructure and superior technologies Best-in-class 5G • Bring 5G consumer use cases to create value proposition Network for Leader dershi hip consumers and • Enhance connectivity for enterprise service with new technology enterprise • Capture emerging ICT solution market (Cloud, Cyber security and IOT) Diversify revenue New through strategic partnerships source and Growth owth growth driver Engin gine • Leverage strength of mobile and FBB to grow consumer digital platform Enhance • Evolve sale and service channel toward digital operational Digi gitali lizatio ion • Enhance customer value and build new revenue through data analytic efficiency and customer • Optimize and digitalize process for cost efficiency relationship 11

Leading 5G infrastructure & superior technologies Roadmap to strengthen leadership with best-in-class spectrum and superior technology FY20 FY21 FY22 2600MHz TDD 100MHz bandwidth, started in Feb-20 5G spectrum 700MHz FDD 2x10MHz bandwidth, available by Jan-21 700MHz FDD 2x5MHz bandwidth, available by Apr-21 mmWave 26GHz TDD 1200MHz bandwidth, available within Feb-21 Technology Deploy 5G NSA in Feb-20 Deploy dynamic spectrum sharing (DSS) on 2600MHz to provide 4G/5G in one single equipment. Deploy 5G SA in Jul-20  FWA - enterprise data service on 5G Fixed Wireless Access technology  Network Slicing* - differing levels of network services to serve enterprise vertical requirement  MEC - Enabling - cloud computing capabilities at the edge of mobile network. Devices • 5G-2600MHz high-end handset • 5G-2600MHz mid-end handset • 5G-multi band handset • 5G-2600MHz FWA CPE • 5G-mmWave CPE *Network slicing - Ability to manage multiple virtual networks over a shared network infrastructure to serve individual service or performance requirement. 12

Initial 5G coverage across Thailand Leading 5G network Bangkok and Metropolitan area 5G rollout in main locations to serve early adopter Downtown Bangkok 66 locations Coverage and high 4G usage area Metropolitan areas 12 locations Top Bangkok shopping malls 32 locations AIS Shop 21 locations 77 51% 59% AIS Co-Working Space 2 locations Cities BKK EEC area* (Population coverage) Total 133 locations Regional Area Number of cell site North 26 locations Current FY20 Target South 31 locations >4,000 sites 4,600 sites Northeast 31 locations East 22 locations 4G 2600MHz utilization Central 32 locations 60% 20% AIS shop 5 locations 4G 2600MHz 4G traffic Top shopping malls 39 locations Capable device offload to 2600MHz Total 186 locations *EEC area - Geographical coverage in EEC promoted area by NBTC. 13