Analyst Conference 4Q12 March 7, 2013 Disclaimer: This presentation contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties. For these statements, we claim the protection of the safe harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.
FY12 strategic highlights 2 Robust growth in Group service revenue was driven by TrueMove H 3G+ and Broadband Internet TrueMove H maintained 3G leadership with extensive nationwide coverage Mobile non voice revenue accelerated Broadband dinternet revenue continued dits strong growth, achieving record FY Broadband net adds MPEG 4 activation drove TrueVisions FY premium subscribers and Q4 subscription revenue
FY Group revenue accelerates on 3G+, Broadband Group service revenue rose sharply on solid performance at TrueMove H and Broadband EBITDA softened mainly from costs related to selling and marketing activities as well as 3G+ service expansion 3 Baht (millions) TrueMobile TrueOnline TrueVisions True Group Service revenue 31,184 +14.4% YoY EBITDA 4,852 2.4% YoY 28,126 +4.7% YoY 10,089 1.2% YoY 10,463 +8.2% YoY 1,966 12.1% YoY 61,865 +8.9% YoY 16,738 2.1% YoY NIOGO excl. deferred tax (6,550) 1,260 (4) (5,354) Loss on impairment of network assets Loss on impairment of intangible assets Net profit (loss) to shareholders of the parent (1,972) (1,972) (143) (143) (9,019) 1,836 105 (7,428)
Debt level increases to support business expansion 4 True Group s long term debt increased mainly to support 3G+ and DOCSIS 3.0 expansion True Group long term debt composition Bt bn 94 12 33 85 78 76 11 68 67 11 11 32 9 12 29 29 26 22 80 11 37 91 10 45 50 42 38 36 33 33 32 36 2005 2006 2007 2008 2009 2010 2011 2012 Online Mobile Pay TV
True Mobile Group
TrueMove H boosts True Mobile Group revenue 6 Service revenue growth driven by strong momentum at TrueMove H with rising non voice usage EBITDA softened on costs related to marketing activities and 3G+ service expansion Normalized 2012 results True Mobile Group Baht (millions) TrueMove 3G & CDMA True Mobile Group Network rental revenue Service revenue 501 22,345 8.3% YoY EBITDA 4,097 36.6% YoY 5,394 10,857 +236.9% YoY 288 NM 5,895 31,184 +14.4% YoY 4,852 2.4% YoY NIOGO excl. deferred tax (3,504) (3,430) (6,550) Subscribers 18.0 million 2.9 million 21.0 million * Consolidation of Hutch performance under True Mobile Group started in Feb 11. True Mobile Group
Non voice revenue accelerates on mobile Internet 7 Substantial growth in mobile Internet usage drove non voice revenue Extensive 3G+ nationwide coverage enabled greater user experience Non voice service revenue Non voice revenue breakdown Bt mn 2,765 1,604 1,772 2,111 2,387 320 582 1,032 1,504 2,083 1,284 1,190 1,091 912 814 4Q11 1Q12 2Q12 3Q12 4Q12 2G +15.8%QoQ +72.4%YoY 3G & CDMA +70.0%YoY 9,035 5,314 5,201 438 4,876 4,007 2011 2012 Bt mn 2,765 2,111 2,387 442 416 1,604 1,772 363 332 383 994 1,155 1,498 1,723 2,133 246 285 231 222 216 5,314 9,035 1,572 1,568 6,509 +137.0%YoY 2,747 999 954 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Messaging Mobile Internet Content * Elimination between 2G and 3G from the device bundling campaign started in 2Q12. True Mobile Group
8 Robust postpaid performance driven by TrueMove H True Mobile Group continued to gain postpaid market share throughout 2012 TrueMove H drove high value postpaid subscribers TrueMobile postpaid subscribers TrueMobile postpaid revenue 27.8% 28.2% 24.2% 24.8% 26.4% 000 subscribers +8.4% QoQ +41.1% YoY 1,814 1,927 2,139 2,361 2,559 24.2% 1,814 28.2% +41.1% YoY 2,559 20.9% 21.5% Bt mn 25.6% 22.9% 24.0% +15.1% QoQ +46.9% YoY 2,755 2,883 3,214 3,518 4,048 +37.0% YoY 23.6% 20.3% 9,973 13,664 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Postpaid Sub Market share (Sub) Postpaid revenue Market share (revenue) True Mobile Group
Free yourself with H lifestyles 9 Extensive 3G+ service coverage Customized mobile packages Affordable 3G phone and smart devices Innovative content& applications Exclusive H activities Excellent after sale services True Mobile Group
Strategic Outlook True Mobile Group 10 Key challenges Action 1800 MHz concession expiration in 2013 Continue to cooperate with NBTC and take necessary steps according to NBTC s clear guidance on the matter Asymmetric IC Work toward an implementation of a lower 2G interconnection rate True Mobile Group
Strategic Outlook True Mobile Group (Cont d) 11 Targets & Key Initiatives Low double digits service revenue growth Continue to lead the 3G market with extensive coverage and high quality of service Develop more competitive device bundling promotions and innovative applications Leverage convergence platform True Mobile Group
TrueOnline
Broadband drives FY revenue, EBITDA growth Service revenue rose mainly on strong growth in Broadband Internet revenue EBITDA improved in line with revenue despite incremental costs to support business expansion 13 TrueOnline service revenue EBITDA and EBITDA margin Bt mn +4.5%QoQ +7.7%YoY 6,789 7,001 6,821 6,995 7,309 1,614 1,654 1,616 1,636 1,611 1,752 1,841 1,658 1,702 2,073 3,423 3,507 3,547 3,657 3,625 +4.7%YoY 28,126 26,876 6,812 7,043 6,517 7,274 13,021 14,336 30.8% 34.7% 32.8% 34.9% 32.5% Bt mn 2,217 2,571 2,362 0.3%QoQ +16.1%YoY 2,581 2,574 35.5% 33.7% +1.2%YoY 9,973 10,089 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Traditional voice (fixed line, payphone, PCT) New revenue, convergence & others Internet, Broadband and Business data services 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 EBITDA EBITDA margin
* In 4Q12, Broadband Internet revenues for 1Q 3Q12 were adjusted to reflect the reclassification of multimedia income to other Internet revenue. FY12 Broadband revenue, net adds accelerate Broadband Internet revenue grew 15% from 2011 driven by DOCSIS 3.0 expansion Broadband leadership with 1.6 mn subscribers by YE12 Record yearly Broadband net adds 14 Broadband Internet revenue Broadband subscribers Bt mn 1.1%QoQ +12.0%YoY 2,805 2,894 3,045 3,176 3,142 10,659 +15.0%YoY 12,258 Bt/sub/mo 709 705 708 709 678 000 subscribers 1,335 1,403 1,466 1,521 1,570 34 68 62 55 48 707 699 1,570 1,335 235 160 1,301 1,335 1,403 1,466 1,521 1,175 1,335 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Previous subs Quarterly net adds
TrueOnline maintains Broadband leadership 15 Launched bundled packages and attractive offerings with higher speeds Enhanced customers experience with superior service quality Greater network coverage with 3.6 mn homepasses in 53 provinces Conducted localized marketing activities Excellent after sales services
Strategic Outlook TrueOnline 16 Key challenges Margin pressured by rising regulatory cost Rising competition in the Broadband market Action Business restructuring opportunities to minimize the impact from the new licensing structure. Improve service quality; Introduce more competitive bundling packages; proactive customer retention program
Strategic Outlook TrueOnline (Cont d) 17 Targets & Key Initiatives High single digit service revenue growth driven by accelerated Broadband subscriber growth Expand Broadband coverage to 4.2 mn homepasses in 61 provinces by the end of 2013 Leverage content twithin the Group by launching more Triple play packages
TrueVisions
19 Subscription revenue surges in Q4 driven by MPEG 4 Music entertainment and advertising supported FY12 service revenue growth Subscription revenue grew in Q4 driven by MPEG 4 activation FY12 EBITDA softened on higher content costs and marketing expenses Service revenue breakdown EBITDA and EBITDA margin +14.3%QoQ +24.0%YoY Bt mn 2,999 2,418 2,469 2,624 2,372 244 233 161 255 208 598 199 335 194 435 1,987 1,973 1,969 1,934 2,157 +8.2%YoY 10,463 9,669 869 707 831 1,562 8,131 8,032 19.7% 17.8% Bt mn 491 441 21.8% 523 16.2% 18.3% 442 26.6% QoQ 14.0% YoY 560 22.7% 18.4% 2,236 12.1%YoY 1,966 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Subscription & installation Others Advertising 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 EBITDA EBITDA margin
ARPU, subscribers accelerate in Q4 Ongoing popularity in the platinum package drove premium subscribers Record quarterly net adds driven by PSI True TV Higher ARPU in Q4 supported by rising high tier subscribers and ending of the 1 month free viewing promotion 20 Subscribers & ARPU Bt/sub/mo 785 825 853 851 2,042 2,042 1,642 1,641 1,791 1,601 1,642 290 354 345 529 735 735 290 526 507 501 504 564 526 564 396 352 347 330 308 396 308 430 428 408 428 435 430 435 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Net adds 36 1 40 +190 +251 63 +400 ( 000) 954 765 870 Blended ARPU Free to air box Freeview Standard (Knowledge) Premium (Platinum, Gold, Silver)
TrueVisions penetrates into all market segments 21 Enhanced viewing experience with more HD channels via the new broadcasting system Equipped our portfolio with more quality content Launched lifestyle packages to meet consumers various demands Revitalized True Knowledge package to better penetrate into the mass market Expanded viewer base through partnership with PSI and local cable operators Obtained NBTC s licenses for cable TV operator, marking a new era and opportunities
Strategic Outlook TrueVisions 22 Key challenges Retain and grow premium subscribers after the end of EPL season (2012/13) Intense mass market competition Action Enhance our portfolio with more quality content (i.e movies, sports) and technological improvement (i.e HD channels, TV Anywhere) Introduce more local content, reality shows and bundled packages
Strategic Outlook TrueVisions (Cont d) 23 2013 Targets & Key Initiatives High single digit service revenue growth Target 3.0 mn customers by the end of 2013 Launch more lifestyle and bundled packages with TrueOnline Introduce interactive TV and prepaid services
Looking Forward
Strategic Outlook True Group 25 High single digit service revenue growth at True Group Capex: Bt 26.5 bn True Mobile Group, Bt 15 bn TrueOnline, Bt 10 bn TrueVisions, Bt 1.5 bn Maintain convergence leadership with superior quality of service and coverage
Q&A