Investor Presentation Advanced Info Service Plc. November 2017 Ticker: ADVANC (SET) AVIFY (ADR)
AIS: Digital Life Service Provider Continue leading in Expand strongly into Partner to offer differentiated “ Mobile ” “ Fixed broadband ” “ Digital service ” Mobile revenue market share Subscriber market share Focused on the five key areas (approx.7.9mn) 26% 48% 33% 23% 2Q17 2Q17 Game 26% Video 6% 38% 3Q17 breakdown Mobile IoT prepaid postpaid money Bt32.5bn 18% 3 rd year of operation Cloud Non- 38% 58% voice covering 28 key cities 82% 54% out of 77 provinces Voice 34% 5.2 m homepass* out of service revenue subs % to service total 21.5m households 40.2mn revenue Digital life service provider with convergence products Mark leadership in mobile data Aim to be a significant player in 3 Pursue long-term growth with • Nationwide 4G/3G/2G coverage years integrated services • Leverage existing nationwide fibre • Emphasize partnership & with focus on network quality • Focus on scale to maintain cost infrastructure ecosystem • Defensive value to core mobile • Leverage the large sub base and advantage business telecom infrastructure *Homepass is defined as a number of households within AIS fibre service area. This includes the homes that require additional investment i.e. 2 port, last miles to be able to get connected.
Mobile: Build on leadership in mobile data Continue to strengthen network quality and efficiency supporting growing data demand Bt34bn CAPEX + (35% to service revenue) for 9M17 Awarded “Thailand’s Fastest Mobile Deploy 2CA in all districts and 3CA Network” for 3 consecutive years by Deployed AIS NEXT G network in key cities in addition to OOKLA, an independent broadband testing Up to 1 Gbps mobile data nationwide 2G/3G/4G application Survey of Thai consumers behavior* 4G handset penetration Average data usage (VoU) % to total 40.2mn subscribers GB/data sub/month From 25k users as of Jul-17 96% social network 42% 39% 35% 5.9 29% 4.7 24% 4.0 3.6 3.0 72% 88% TV, movie, music 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 streaming *Electronic Transactions Development Agency (Public Organization). [ ONLINE] Available at: https://www.etda.or.th/publishing-detail/thailand-internet-user-profile- 2017.html. [Accessed 05 November 2017]. 3
Mobile: Growth driven by postpaid segment Expand postpaid segment: driven by data demand and migration to postpaid Average data usage Churn rate Subscriber contribution Revenue contribution ARPU (GB/data user/month) (% per month) (% to total subscribers) (% to revenue) (Bt/sub/month) Operational figure Contribution 54% 59% 3Q16 3Q17 82% 85% 590 597 38% 34% 7.5 3.8% 3.5% 5.4 182 4.1 186 18% 1.7% 1.5% 2.7 15% Postpaid Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid: Build 4G adoption through VDO content Prepaid: Focus on segmentation Postpaid offering is designed to encourage high ARPU Entertainment Teenagers Roamers subscription with more value and differentiation through VDO contents at worry-free data usage Segmented plans and handset offerings Discounted 4G devices from leading brands ZEED SIM Super Play SIM SIM2FLY • 12GB YouTube Target high end with full 4G speed in large bucket • Unlimited music • Popular outbound Monthly • Free JOOX with FUP*, and target mid-tier with buffet plan with • Free 2GB roamer SIM plans • 5GB Super WiFi speed cap • AIS PLAY Bt399 for Asia • 4GB for 8 days Added value and differentiation with video contents *Fair usage policy is applied through speed throttle down once reach data allowance 4
Price plans: Target better ARPU and build differentiation on postpaid Unlimited data usage with capped-speed packages Full 4G speed packages • • Offer unlimited data usage at different Attract new data users and encourage higher ARPU speeds for diverse needs e.g. chat, social subscription through premium VDO contents e.g. AIS Play, networks, music, HD video streaming Premier package, HOOQ, and Netflix • • Encourage customers to move from prepaid 4G speed with FUP, reduced speed after reaching the data to postpaid subscription with worry-free plan usage limit • Serve high-end heavy data users with real unlimited max speed experience Buffet NET 4G MAX SPEED 4G/3G FUP after Call all Monthly Call within Monthly Total Enjoy Free Unlimited reach data networks Enjoy Free AIS (mins) internet Fee (Bt) Fee (Bt) max speed at usage limit (mins) 299 1GB 100 350 512kbps 100 1 month 450 1mbps 100 399 3GB 150 128kbps 499 7GB 200 550 4mbps 200 3 months 6mbps 200 599 10GB 600 250 *AIS WIFI is included in all packages. 799 15GB 350 3 months 384kbps 999 20GB 450 1,099 650 Unlimited 1,299 850 3 months - at max 1,499 1,200 speed 12 months 1,899 2,000 *AIS WIFI is included in all packages. 5
FBB: Expand subscriber and revenue base Thai fixed broadband market FBB subscriber market share Net addition market share Drivers: 1) Low FBB penetration (37% of 21.5m households) Total est. 250k net addition Total est.7.9mn users 2) Majority of users connect through xDSL Broadband users (mn) % household peneration 4% 33% 23% 35% 37% The survey* showed issues 34% 29% 29% among Thai consumers: 26% 2Q17 2Q17 63% 6% Slow connection 7.9 7.2 38% 32% 6.2 5.4 44% Unstable connection 30% Limited coverage FY14 FY15 FY16 1H17 AIS fibre subscribers (‘000) AIS fibre ARPU (Bt/sub/month) covering Leverage Net additions 28 Beginning subscribers existing fibre infrastructure +28% YoY key cities 482k +6.2% QoQ 446k 36 Total 374k 72 301k 72 6% 2.7% 195k 106 446 637 600 374 541 498 510 subscribers 79 301 195 of service 116 market share revenue as of 2Q17 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 Source: NBTC, Company data *Electronic Transactions Development Agency (Public Organization). [ ONLINE] Available at: https://www.etda.or.th/publishing-detail/thailand-internet-user-profile-2017.html. [Accessed 05 November 2017]. 6
FBB: Adding value through bundling packages • Offer competitive pricing with segmented packages to serve different needs of customers • Focus on ARPU accretion – Encourage customers to subscribe to high-end packages with Pure broadband more value for money and attractive campaigns • Leverage synergy of the three core businesses (FMC) to acquire new subscribers while create stickiness and differentiation. comes with 100+ free channels. Customer can subscribe to additional packages for Broadband + contents premium contents – GOLD or PLATINUM AIS Playbox Bt599/month Bt299/month broadband + contents + mobile FBB MOBILE Monthly Entertainment mbps Unlimited Fee (Bt) (DL/UL) speed at 599 30/10 NA 1mbps 799 50/20 4mbps 12 months 1,099 100/30 3 months 1,799 100/40 6mbps 1,999 200/50 12 months 6 months 7 *AIS WIFI is included in all packages.
Digital service: Create differentiation with exclusivity and variety Digital contents mPAY, online payment Enterprise services • Largest mobile network infrastructure and backhaul Mobile payment gateway, at carrier grade, supporting coverage and capacity partnering with wide range of banks to serve enterprise segment e.g. domestic data and credit card companies circuit (lease line), corporate internet • Provide ICT total solution from voice data mPAY connectivity to ICT solution Announced Business Cloud Vision in Sep- Encourage adoption of self-service 17 with readiness to collaborate with every business desiring to have Cloud system Create differentiation and value added to both • Consultancy, system mobile and fixed installation/relocation/mainten broadband businesses and ance/ security introduce convergence • AIS Unified Communication – packages a Cloud phone system • AIS mForm – a platform to AIS Play and AIS build internal online forms Playbox , AIS’ video scan QR to download myAIS app platform provide world • Partner with Microsoft Azure to myAIS app >1.3mn active users class entertainment both provide resource management on the go and at home with insightful analytics All-in-one AIS online application for both AIS mobile and AIS Fibre Nov-17, AIS has launched • • Tier-4, world-class Data Centers Manage accounts e.g. check real-time the new video platform with usage, buy package, pay the bills. better performance • Check and receive privilege • EDS with Bandwidth-on- • Ask Aunjai – AI chatbot demand function 8
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