MANAGEMENT DISCUSSION AND ANALYSIS SECOND QUARTER 2013 MD&A

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1 MD&A Q213 Highlights In Q213, total revenues developed healthily at 13.5% YoY and 2.7% QoQ on the back of strong service revenues and handset sales. Service revenues, rising 10.7% YoY and 1.2% QoQ, was driven by strong data revenue development from both postpaid and prepaid segments. Sales of handsets and starter kits rose 37.2% YoY and 13.1% QoQ as a result of increasing demand for 3G devices and launch of value-for-money dtac TriNet phones. EBITDA in Q213, standing at THB 7.5 billion, grew strongly 12.7% YoY driven by revenue growth and effective cost management but slightly decreased 0.1% QoQ due to increasing costs of service and selling and marketing expenses related to TriNet marketing launch. EBITDA margin dropped slightly to 30.4%, 0.8pps down QoQ, corresponding to higher contribution of low-margin handset business. Net profit of THB 2.9 billion increased 3.8% YoY as a result of strong EBITDA development partly offset by higher depreciation and amortization expenses from continuing network expansions. Significant One-Time Transactions 1 Total subscribers in Q213 reached 27.2 million, with net additional subscribers of 622,901. Q213 blended Average Revenue per User (ARPU) was THB 259, slightly dropped 0.9% YoY due to intense market competition. Blended Minutes of Use (MOU) decreased 1.1% YoY due to a change in customers behavior towards data usage. On May 9, 2013, dtac TriNet (comprised of services on 2G 1800MHz, 3G 850MHz, and 3G 2.1GHz networks) was introduced to the market. The new TriNet networks have been pilot tested by dtac employees since June 21, 2013 to ensure smooth migration and quality services. A commercial service launch is targeted on July 23, In this quarter, we increased our CAPEX guidance to THB 14.5 billion to achieve higher population coverage of 50% by year end. Corresponding to the new interconnection (IC) rate set by NBTC, it is expected that IC rates with all operators will also be reduced bilaterally to THB 0.45 per minute, starting from July This will not have impact to our 2013 revenue guidance of high single digit growth. Reversal of prepaid bonus accruals Prepaid bonus is a free top-up given to dtac prepaid customers to stimulate customers top-ups and to support dtac marketing campaigns. This free bonus can only be used for on-net services within dtac. Once granted, this free bonus will be accrued as a negative transaction to prepaid voice revenues. In Q213, the unused and expired bonus was reversed, resulting in a positive impact on prepaid voice revenue for the amount of THB 248 million. New Order Management System (NEO) settlement In relation to the write-off of investment in the New Order Manage system (NEO) of THB 500 million as one-time expense in Q113 under general administrative expense, in this period, the settlement for all pending unpaid invoices has been reached. Therefore, we recorded the amount of THB 186 million as a reversal of write-off under the same category. Receive of flood insurance claim In Q213, dtac received the insurance claim from the major flood incident in 2011 for the amount of THB 76 million. This one-time transaction was recorded as a positive adjustment to the Repair and Maintenance of Cell Site expenses under Network OPEX in Cost of Services. Operational Summary In Q213, dtac posted another period of strong net additional subscribers of 622,901 on the back of aggressive acquisition plan. Postpaid net adds remained strong at 200,565 for this period. As a result, total subscribers rose to 27.2 million at end of Q213. In Q213, blended Average Revenue per User (ARPU) increased 0.7% QoQ mainly from data revenue but decreased 0.9% YoY. Q213 blended Minutes of Use (MOU) decreased 4.3% QoQ as a result of seasonality effect in Q2 and 1.1% YoY due to change in customers lifestyle toward more data and less voice usage. At the end of Q213, data users stood at 9.4 million, representing 34.7% of total subscribers growing 4.3% QoQ. 3G subscribers reached 3.4 million increasing from 1.1 million in Q212 and 2.9 million in Q113, implying growth of 204.0% YoY and 16.7% QoQ. Smartphone penetration increased from 17.7% in Q212 to 22.9% in Q213 on the back of more affordable smartphones available in the market but maintained from Q113 due to fast growing of subscriber base in Q213. In June 2013, dtac successfully launched value-for-money dtac TriNet branded-phones to mass market via traditional channels and 7-Eleven. There are 3 models called Mousey, Joey, and Cheetah with the price range of THB 1,290 - THB 4,590. Our effort to encourage higher adoption of 3G handset will continue in order to support faster 3G 2.1GHz migration.

2 Total active subscribers (in thousand) Q112 Q212 Q312 Q412 Q113 Q213 Postpaid 2,451 2,502 2,586 2,816 3,022 3,222 Prepaid 21,680 21,808 21,982 23,502 23,587 24,009 Total 24,131 24,310 24,568 26,318 26,609 27,231 Net additional subscribers (in thousand) Q112 Q212 Q312 Q412 Q113 Q213 Postpaid Prepaid , Total , MOU (minutes/sub/month) Q112 Q212 Q312 Q412 Q113 Q213 Postpaid Prepaid Blended Postpaid w/o IC Prepaid w/o IC Blended w/o IC ARPU (THB/sub/month) Q112 Q212 Q312 Q412 Q113 Q213 Postpaid Prepaid Blended Postpaid w/o IC Prepaid w/o IC Blended w/o IC Financial Summary Operating Revenues Total Revenues for Q213 amounted to THB 24.5 billion, increasing 2.7% QoQ and 13.5% YoY, mainly driven by strong growth of non-voice revenue and handset sales. Revenue from Voice Service in Q213 increased 1.7% both QoQ and YoY to THB 11.0 billion. Postpaid voice increased 3.0% QoQ and 12.8% YoY as a result of the continuous effort in converting high spending Prepaid to Postpaid. Prepaid voice revenue declined 2.0% YoY but slightly improved 1.2% QoQ from the one-time bonus reversal. Contribution from voice revenue to service revenues has become smaller from 56.2% in Q212 to 51.6% in Q213. Revenue from Value-Added Service (VAS) continuously grew in Q213 at 50.7% YoY and 7.5% QoQ to THB 5.4 billion. The major contributor in VAS revenue remained mobile Internet usage on the back of continued popularity in smartphones and social applications, and our quality 3G service on 850MHz. dtac launched new attractive smartphone promotions to encourage new data users and increase data usage. Contribution from VAS revenue to service revenues has increased from 18.6% in Q212 to 25.3% in Q213. This trend shall continue for the rest of the year. Revenue from International Roaming Service (IR) in Q213 significantly decreased 24.1% QoQ due to low seasonality of tourism especially in inbound. IR revenue also decreased 10.7% YoY as a result of intense roaming competition. For Q213, IR revenue stood at THB 520 million, contributing 2.4% in Q213 which was smaller than the contribution of 3.0% in Q212. Interconnection (IC) Revenue for Q213 decreased 3.7% QoQ and 4.1% YoY. As a result, the contribution of IC revenue to service revenues decreased to 16.5% in Q213 from 19.1% in Q212. Other Service Revenues, comprising mainly of revenues from IDD services and other fees, in Q213 slightly decreased 0.5% QoQ but significantly increased 45.7% YoY, mainly driven by IDD services. Revenue from Sales of Handsets and Starter Kits for Q213 at THB 3.3 billion increased 13.1% QoQ and 37.2% YoY on the back of our promotion on smartphones and the introduction of dtac TriNet branded-phones as an effort to push 3G phone penetration. Operating Costs Total operating costs, increasing 7.7% QoQ and 16.7% YoY mainly from higher depreciation and amortization, and handset costs, stood at THB 17.4 billion. Regulatory Costs, comprising revenue share to CAT and numbering fee to the NBTC, in Q213 stood at THB 5.7 billion, increasing 5.2% QoQ and 13.0% YoY from service revenue growth and larger subscriber base. Therefore, regulatory costs to service revenues slightly increased from 26.3% in Q212 to 26.8% in Q213. Network OPEX in Q213 at THB 986 million increased 3.4% QoQ mainly from network service agreement renewal and 5.1% YoY from 3G 850MHz network expansion. Moreover, 2

3 in this period, there was a one-time positive effect of flood insurance claim of THB 76 million. As a result, network OPEX to service revenues slightly decreased from 4.9% in Q212 to 4.6% in Q213. Interconnection (IC) Cost for Q213 decreased 3.6% QoQ and 3.2% YoY, amounting to THB 3.4 billion. IC cost to service revenues decreased from 18.1% in Q212 to 15.8% in Q213. Net IC for the period was THB 150 million, decreasing from THB 187 million in Q212 and THB 157 million in Q113. Other Operating Costs of Services, consisting of prepaid card production costs and commissions, IR and IDD costs, network insurance costs and others, in Q213 stood at THB 1.1 billion decreasing 6.5% QoQ mainly from lower roaming costs. However, it increased 18.2% YoY due mainly to higher IDD costs. These costs to service revenues slightly increased from 5.0% in Q212 to 5.3% in Q213. Depreciation and Amortization (D&A) of Operating Costs of Services for Q213 significantly increased 23.7% QoQ and 35.1% YoY due to the completion of both 2G network modernization and 3G 850MHz projects. As a result, D&A of operating costs of services increased to 14.3% in Q213 from 11.6% in Q212. Cost of Handsets and Starter Kits for Q213 increased 14.6% QoQ and 40.5% YoY in line with the corresponding revenue with a larger extent due to lower margin. Handsets and starter kits margin was 2.0% in Q213, decreasing from 4.3% in Q212 and 3.3% in Q113 as the proportion of handsets with lower margin continued to grow larger. Handset margin increased from 1.4% in Q113 to 1.7% in Q213 but decreased from 2.2% in Q212. The cost of handsets already included the fee to BrightStar, world leading device service provider. We believe that the handset margin would remain low due to intense market competition and continuous effort to encourage smartphones by all operators. Selling, General and Administrative Expenses (SG&A) SG&A significantly decreased 20.2% QoQ due to a one-time NEO write-off settlement as positive effect in general administrative expenses but increased 3.9% YoY mainly from higher selling and marketing expenses. Selling and Marketing Expenses for Q213 at THB 1.0 billion significantly increased 29.6% QoQ and 49.1% YoY due to many activities in TriNet launch and subscriber acquisition campaigns. In Q213, selling and marketing expenses were 4.7% to service revenues, increasing from 3.5% in Q212. We expect full-year 2013 selling and marketing expenses will stay at the same level as percentage to service revenues as General Administrative Expenses in Q213 decreased significantly 34.5% QoQ and 15.6% YoY to THB 1.4 billion, mainly from the positive one-time effect of NEO write-off settlement for THB 186 million. Their percentage to service revenues stood at 6.5% in Q213, decreasing from 8.5% in Q212. Provision for Bad Debt in Q213 at THB 181 million decreased 53.9% QoQ but increased 186.8% YoY since there were an impact from NEO resulting in significant increase in accounts receivable and one-time provision adjustment for Jaidee SOS prepaid service in Q113. Provision for postpaid bad debt for Q213, increasing from THB 58 million in Q212 but decreasing from THB 176 million in Q113, stood at THB 111 million which was 2.0% of postpaid revenue, back to our comfortable level. The remaining effect from NEO shall end in this quarter and we expect the accounts receivable would return to normal by Q313. The provision for postpaid bad debt for this year shall be back to the same level as in Depreciation and Amortization of SG&A for Q213 decreased 10.7% QoQ and 15.9% YoY as a result of NEO write-off in Q113. D&A of SG&A to service revenues stood at 2.0% in Q213, decreasing from 2.7% in Q212. EBITDA and Net Profit EBITDA in Q213 was THB 7.5 billion, slightly decreasing 0.1% QoQ but growing 12.7% YoY. The YoY growth was from higher revenue and effective cost management. EBITDA margin for Q213 stood at 30.4%, decreasing from 30.6% in Q212 and 31.2% in Q113, due to higher contribution of handset sales with low margin. Net profit for Q213 amounted to THB 2.9 billion, decreasing 3.0% QoQ but increasing 3.8% YoY, detracting effect on EBITDA growth by depreciation and amortization and unrealized foreign exchange loss in the period. Balance Sheet and Key Financial Information Total Assets at the end of Q213 stood at THB billion, decreasing from THB billion at the end of Q113 mainly from the decrease in cash and cash equivalents and accounts receivable. Interest-Bearing Debt at the end of Q213 was THB 23.6 billion decreasing from THB 26.3 billion at the end of Q113 from loan repayment. In July 2013, dtac will issue unsubordinated and unsecured THB debentures for the amount of THB 5.0 billion with the tenor of 3 years and semi-annual coupon payment. The use of proceeds would be investment and working capital. Operating Cash Flow (defined as EBITDA - CAPEX) for Q213 was THB 4.5 billion, decreasing 27.8% QoQ from slightly lower EBITDA and higher CAPEX than Q113. CAPEX for Q213 stood at THB 2.9 billion, increasing from THB 1.2 billion in Q113. Higher CAPEX could be expected for the rest of the year in order to achieve our revised 3G 2.1GHz population coverage at 50% by year end. Statement of financial position (THB million) Q113 Q213 Cash and cash equivalent 9,709 9,520 Other current assets 11,681 10,992 Non-current assets 82,005 82,108 Total assets 103, ,620 Current liabilities 40,986 41,940 Non-current liabilities 28,467 26,416 Total liabilities 69,453 68,355 Shareholders equity 33,941 34,265 Total liabilities and shareholders equity 103, ,620 3

4 Income statement (THB million) Q212 Q113 Q213 %QoQ %YoY Voice 10,776 10,777 10, % 1.7% Postpaid 2,701 2,958 3, % 12.8% Prepaid 8,075 7,819 7, % -2.0% VAS 3,566 5,000 5, % 50.7% IR % -10.7% Others % 45.7% Service revenues ex. IC 15,520 17,334 17, % 14.2% IC revenue 3,659 3,642 3, % -4.1% Service revenues 19,179 20,977 21, % 10.7% Handsets and starter kits sales 2,392 2,903 3, % 37.2% Other operating income % -31.0% Total revenues 21,628 23,905 24, % 13.5% Cost of services (12,632) (13,353) (14,192) 6.3% 12.3% Regulatory (5,040) (5,416) (5,696) 5.2% 13.0% Network (938) (953) (986) 3.4% 5.1% IC (3,471) (3,485) (3,359) -3.6% -3.2% Others (950) (1,054) (1,123) 6.5% 18.2% Depreciation and amortization (2,233) (2,445) (3,029) 23.9% 35.6% Cost of handset and starter kits (2,289) (2,805) (3,215) 14.6% 40.5% Total costs (14,921) (16,159) (17,408) 7.7% 16.7% Gross profit 6,707 7,746 7, % 6.5% SG&A (2,876) (3,744) (2,990) -20.2% 3.9% Selling & marketing expenses (674) (776) (1,006) 29.6% 49.1% General administrative expenses (1,626) (2,094) (1,372) -34.5% -15.6% Provision for bad debt (63) (391) (181) -53.9% 186.8% Depreciation and amortization (513) (483) (431) -10.7% -15.9% Gain/Loss on foreign exchange (135) % % Interest income % -42.1% Other income % 8.4% EBIT 4,015 4,170 4, % 2.7% Financial cost (282) (362) (342) -5.6% 21.3% Corporate income tax (905) (781) (846) 8.3% -6.5% Net profit for the period 2,828 3,027 2, % 3.8% * Restated by reclassifying some commission from other cost of services to selling and marketing expenses since Q112 EBITDA (THB million) Q212 Q113 Q213 %QoQ %YoY Net profit for the period 2,828 3,027 2, % 3.8% Financial costs % 21.3% Corporate income tax % -6.5% Depreciation expense % 7.1% Amortization expense 2,438 2,603 3, % 28.4% Interest income (93) (27) (54) -98.9% 42.1% Loss (gain) on foreign exchange (42) (97) % 419.9% Loss (gain) on disposal of fixed assets and other intangible assets (197) % N/A EBITDA 6,625 7,478 7, % 12.7% 4

5 Outlook 2013 dtac s investment plan for to achieve 80% population coverage on 3G 2.1GHz maintains at THB 34.0 billion. This investment shall be financed mainly by debt since our target ratio of net debt to EBITDA is approximately 2 times. Our dividend policy remains to pay minimum 80% of the company s net profit with an aim to pay quarterly. We are confident that our quality existing 2G modernized network and nationwide 3G 850MHz network could provide the best customer experience while we are working on launching and expanding the new 3G 2.1GHz network. Our target launch date for the new 3G 2.1GHz network remains July 23, Once the new 3G 2.1GHz network is launched, dtac will be the mobile operator with the widest bandwidth in Thailand operating at 3 networks, 1800MHz, 850 MHz and 2.1GHz. This competitiveness shall ensure our delivery of superior service quality and capacity. In Q213, we revised our 2013 guidance as following: 1) High single digit revenue growth (maintained) 2) EBITDA margin in the range of 30% to 31% (maintained) 3) CAPEX at THB 14.5 billion (revised up from minimum of THB 12.5 billion) CONTACT US: TOTAL ACCESS COMMUNICATION PLC. 319 Chamchuri Square, Phayathai Road, Pathumwan, Bangkok Investor Relations Tel: IR@dtac.co.th Website: Disclaimer Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as may, will, expect, anticipate, intend, estimate, continue plan or other similar words. The statements are based on our management s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements. 5