True Corporation Plc. At a Glance November 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.
True Group Thailand s convergence lifestyle leader 1 CP Group Public - Foreign 13.5% shareholders - Local 24.0% 62.5% 37.5% 99.4 1/ % 100.0% 2/ 100.0% Mobile Group Pay TV Wireline/Online 22.4 mn subs Thailand s leading nationwide Fixed-line operator with 1.7 mn 25.2% subscriber market share 4G LTE 2100 MHz 3G+ 850, 2100 MHz 2G 1800 MHz pay TV provider 2.4 mn subs (91.7% DsTV; 8.3% cable TV) Enhanced, secure HD subs in Greater Bangkok area Broadband leadership with 1.7 mn broadband Internet customers via FTTx, DOCSIS 3.0, International call services: 006 (TDM), 00600 (VoIP) broadcasting system with MPEG-4 & secure silicon and xdsl Over 100,000 WiFi hotspots 36.2% broadband subscriber market share Convergence/bundled packages Note: 1/ Holds 100.0% in Real Future Co., Ltd.; indirectly holds 99.3% in True Move Co., Ltd. and 99.4% in Real Move Co., Ltd. 2/ Indirectly holds 100.0% in True Visions Group Co., Ltd. (which holds 99.3% in True Visions PLC and 99.0% in True Visions Cable PLC) 3/ Market share and subscriber figures are as at September 30, 2013 (source: Company) 4/ Estimated shareholding figures are as at August 8, 2013
Key strategic milestones Transformation from a fixed-line concessionaire to a quad-play operator 2 1995: Launched cable TV service 2013: Launched under UTV; merged with IBC in 1998 to form UBC 2003: Launched Broadband services 2007: Launched the first bundled package True Life Freeview which offered popular convergence package of TrueMove and TrueVisions 2011: Completed Hutch acquisition; started rolling out commercial 3G services; launched DOCSIS 3.0 Cable Modem network Thailand s first 4G LTE services while achieving over 93% population coverage on the 850 MHz; acquired broadcasting TV service and network licenses 1991: Started fixed-line telephone service under a B-T-O concession with TOT (first 2 mn lines) 2002: TA Orange launched its cellular service under the Orange brand 2006: Achieved nationwide mobile coverage (92%) on the 1800 MHz - Completed UBC tender offer; rebranded as TrueVisions ; expand pay TV services to mass market - Introduced first public WiFi service 2009: First Thai operator to launch Apple s iphone 3G; offered 3G 850 MHz trial service 2012: Acquired the 2.1 GHz spectrum license; achieved extensive 3G+ coverage nationwide; offered the fastest consumer Broadband experience at 200 Mbps; activated the new broadcasting system (MPEG-4 )
Thai telecom industry s competitive landscape 3 Industry regulator Wire-line license Television license NTC/NBTC Mobile license Temporary measure TUC TrueVisions Group TOT Real Future (TrueMove H brand) CAT TrueMove AIS s DPC Fixed-line concessions Mobile 2G concession Mobile 3G TOT s Thai Mobile Mobile 2G concessions cess o s Mobile 3G CAT Telecom True AIS DTAC Real Move (TrueMove H brand) BFKT TT&T Equipment lease and O&M Type-3 Broadcasting Concession Concession MVNO Type-3 telecom telecom TV service and /Reseller license and license network licenses 2.1 GHz IMT Spectrum License Concession MVNO /Reseller
Group long-term financial trends Service Revenue 10.5 50.5 51.8 51.9 52.6 52.6 56.8 61.9 Bt bn Bt bn 8.4 8.9 9.7 9.4 9.5 9.6 41.5 1.7 4.5 8.2 19.6 22.3 23.8 22.8 23.6 23.3 27.2 31.2 18.1 20.1 24.2 27.0 30.4 (5.0) 18.1 20.1 22.6 22.6 22.8 23.0 24.0 24.5 26.0 26.4 26.0 26.9 28.1 (1.6) (4.3) (4.5) (3.0) NIOGO 0.1 (1.2) (0.5) (1.4) (3.8) (6.0) (5.4) (6.6) 4 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 TrueOnline True Mobile TrueVisions *Segment results are presented before intersegment elimination EBITDA '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 TrueOnline True Mobile TrueVisions Group EBITDA margin* Bt bn 15.7 17.3 19.8 2.5 18.5 19.6 49% 2.7 2.6 18.4 44% 17.1 2.3 16.7 38% 42% 40% 36% 37% 33% 35% 35% 33% 2 27% 11.6 12.9 2.4 1.8 5.1 5.1 7.6 2.2 2.0 22% 5.7 7.2 9.5 9.0 9.8 6.2 5.0 4.9 9.5 9.0 11.8 11.9 11.5 10.7 9.9 9.7 10.2 9.8 9.8 10.0 10.1 (1.9) (0.3) '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 TrueOnline True Mobile TrueVisions '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 TrueOnline True Mobile TrueVisions Group * on total revenue excluding IC and network rental revenue
Key investment & growth strategy 5 1 Lead mobile Internet arena via Thailand s first 4G LTE services and best 3G network; leverage on perfect combination of the 2100 MHz and the 850 MHz frequencies as well as attractive ti bundling packages with awide range of devices for all segments 2 3 4 5 Secure Broadband leadership with an expanding network coverage, mainly via DOCSIS 3.0, superior service quality as well as competitive and unique broadband Internet offerings HDTV via DOCSIS 3.0; secure the premium pay TV market with an enhanced broadcasting system, quality content and technology improvement; capture advertising growth potential by further expanding into the mass and free-to-air markets Further strengthen convergence platform by developing content and applications to enhance customer loyalty and reduce churn as well as simplifying convergence proposition to make it more appeal to the Thai audience Seek regional business opportunities
True Mobile shines in the non-voice& postpaid segments 6 True Mobile Group continued its robust growth while capturing more shares in the non-voice and postpaid segments, mainly on rising mobile Internet usage Key strengths: TrueMove H s best 3G and 4G LTE services, attractive device-bundling packages, and innovative content and applications Thailand mobile non-voice market size* 17.9% 17.4% 19.6% 12.8% 14.9% 13.5% 15.1% Thailand mobile postpaid market size* 20.3% 23.6% 22.9% 26.1% 12.2% 2% 14.1% 14.6% 20,962 21,021 26,148 35,220 50,407 35,986 49,907 40,535 41,218 43,310 49,052 57,879 42,056 52,378 Non-voice market value % TrueMobile's market share Postpaid market value % TrueMobile's market share * Consisting of TrueMove, TrueMove H, Hutch (CDMA service was officially shut down in April 13), AIS and DTAC
TrueMove H dominates mobile Internet arena Officially launched on Aug 30, 2011 High-value postpaid subscribers dominated customer base Well-positioned to capture growth in mobile dt/it data/internett market kt Thailand s best 3G+ nationwide coverage (>93% population coverage) Lease Agreement Thailand s first 4G LTE services Competitive device-bundling packages with a wide array of devices for all segments Innovative content and applications over 100,000 WiFi hotspots Excellent after-sale services CAT True Mobile Group Structure 100.00% BFKT 850 MHz equipment Network O&M Wholesale Agreement Marketing Contract TRUE Corp True Mobile bl Group Real Future 2.1 GHz licensee RealMove (TrueMove H brand) 3G 850 MHz (reseller) 99.40% BITCO Holding Company 99.99% 99.92% 92.5% HWMH HCAT CDMA 73.92% TrueMove 2G 1800 MHz * CDMA service was officially shut down in April 13 7
True Mobile Group targets & strategic outlook Maintain mobile Internet leadership through the largest coverage and highest network quality, using 3G and 4G LTE technologies Launch more competitive device-bundling promotions as well as innovative applications and content Leverage on True Group s rich content and strong convergence platform 8
leads the broadband market 9 Offered the most competitive ULTRA hi-speed Internet packages (10-200 Mbps) with attractive value-added services DOCSIS 3.0 and FTTx technologies enabled TrueOnline to offer Thailand s fastest consumer download speed of 200 Mbps Enhanced customers experience with superior service quality and greater network coverage with 4.0 mn homepasses in 61 provinces Conducted localized marketing activities to raise awareness of TrueOnline s brand and competitive offerings
DOCSIS 3.0 facilitates subscriber and ARPU growth Broadband d leadership with ih 1.75 mn subscribers by 3Q13 Successful expansion of DOCSIS 3.0 to new territories and excellent market response to bundled packages fueled subscriber and APRU growth DOCSIS 3.0 facilitated real triple-play offerings with the launch of better-valued convergence packages SookX3, combining i broadband d Internet, t mobile s voice and data usage as well as pay TV services through the same cable network 10 Broadband Subscribers & ARPU 728 701 707 699 710 722 000 subscribers b 1,335 1,175 1,026 160 98 150 1,570 1,521 235 186 1,335 1,335 927 1,026 1,175 1,749 179 1,570 2009 2010 2011 2012 9M12 9M13 Previous subs Net adds
targets & strategic outlook Outperform the broadband market by continuing to offer market s most competitive and unique packages Strengthen broadband leadership position by expanding coverage to reach all 77 provinces by mid 2014 Continue to enhance customers experience and service quality at all touch points Leverage content within the Group by introducing more convergence packages 11 Broadband penetration by household Thailand broadband penetration 107% 103% 99% 75% 8.0 6.0 4.0 26% 21% 20% 2.0 4.4 Subscribers (mn) Penetration rate (%) 15.7 12.9 10.2 6.4 18.7 21.2-2006 2007 2008 2009 2010 2011 2012 Source: BuddeComm Source: NBTC (subscriber), NESDB (household)
penetrates into all market segments 12 Enhanced viewing experience via Thailand s highest HD offering of 50 channels Secured exclusive partnership with world s leading content providers Equipped portfolio with a wide array of top international and local quality content Launched customized and convergence packages to capture growth in the untapped segments Revitalized True Knowledge package to include more quality content at an affordable price Introduced new services (i.e. TrueVisions Anywhere, Thailand s first 3D service) to better match consumers changing lifestyles Partnered with leading satellite and cable TV operators
ARPU and customers continue solid YoY growth 13 Bt/sub/mo Subscribers b & ARPU 988 806 744 765 870 843 927 000 subs 2,042 1,469 1,663 1,705 1,791 1,642 199 256 735 529 143 290 536 520 527 526 564 504 2,368 881 741 320 470 475 396 308 330 387 479 459 455 430 435 428 360 Premium (Platinum, Gold, Silver) Freeview Free-to-air box Standard (Knowledge) Blended ARPU ARPU grew YoY due to continued positive momentum from the successful activation of the new broadcasting system (MPEG-4) in July 2012 Customer base increased to 2.4 mn, driven by partnership with leading satellite operator through the launch of PSI-True TV set-top boxes
Advertising offers strong growth opportunities for 14 USD bn Advertising spending 3.8 3.33 3.1 2.5 2.6 2.7 2.8 2.7 2.7 1.6 2.2 1.3 1.2 1.9 1.1 1.1 1.1 1.2 1.2 1.1 1.5 1.6 0.9 1.2 1.2 0.7 0.6 0.6 0.4 0.4 0.8 0.8 0.9 1.0 1.1 1.3 1.4 1.5 1.6 1.6 1.5 1.6 1.8 2.0 2.2 2.6 2.7 1.1 1.1 1.6 1.7 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 9M12 9M13 TV Others Source: AGB Nielsen Rising eyeballs of TrueVisions content will facilitate TrueVisions advertising growth opportunity
targets & strategic outlook 15 Acquire more world-class quality content Develop more bundled packages with other segments within True Group Partner with leading TV manufacturers and selected retail stores Increase customer base through an expansion of TrueVisions Anywhere
2013 targets & guidance 16 High single-digit service revenue growth at True Group Low double-digits growth at True Mobile Group High single-digit growth at TrueOnline and TrueVisions Group CAPEX of Bt 26.5 bn Strengthen the Group s convergence platform: Continue to expand service coverage Launch more competitive convergence offerings Develop innovative applications and content
3Q/9M13 results
Financial highlights 3Q13 (Units in millions of Baht unless otherwise indicated) TrueOnline 1/ True Mobile 1/ TrueVisions 1/ m Consolidated Total Revenue (excl IC & network rental) 7,999 11,862 2,675 20,107 % growth Q o Q 3.0% 0.4% 4.7% 0.1% % growth Y o Y 8.1% 20.9% 1.8% 12.4% Service Revenue 2/ 7,679 9,118 2,653 17,069 % growth Q o QQ 2.7% 7.6% 3.7% 4.3% % growth Y o Y 9.8% 17.7% 1.1% 10.6% EBITDA 2,845 1,047 228 3,975 % growth Q o Q 4.4% 15.8% 50.5% 8.4% % growth Y o Y 10.2% 45.5% 48.4% 6.8% Interest expense (635) (1,158) (231) (2,023) % growth Q o Q 3.3% 2.8% 4.7% 4.9% % growth Y o Y 10.5% 29.3% 1.1% 22.4% Tax, net (272) (687) 155 (803) growth Q o Q Q 58 428 (231) 273 growth Y o Y (16) 498 (176) 381 18 NIOGO 3/ 72 (3,329) (221) (3,576) growth Q o Q (144) (673) (55) (931) growth Y o Y (36) (1,059) (138) (1,420) NIOGO excl. deferred tax 280 (2,679) (372) (2,870) growth Q o Q (122) (265) (262) (690) growth Y o Y (31) (626) (307) (1,076) Free Cash Flow (1,943) (1,220) (1,421) (4,568) growth Q o Q (2,069) (1,385) (1,343) (4,096) growth Y o Y (2,520) 787 (725) (2,443) Capex 3,108 3,260 600 6,710 growth Q o Q 657 813 253 1,490 growth Y o Y Y (132) 2,170 (19) 1,807 1/ Before eliminating inter-company transactions; 2/ Revenue from telephone and other services excluding IC revenue and network rental revenue 3/ NIOGO: Net income (loss) from ongoing operations
Financial highlights 9M13 19 1/ (Units in millions of Baht unless otherwise indicated) TrueOnline / True Mobile / TrueVisions i Consolidated Total Revenue (excl IC & network rental) 23,448 36,380 8,164 61,018 % growth Y o Y 6.6% 17.6% 7.4% 12.1% Service Revenue 2/ 22,499 26,093 8,063 49,784 %growthyo Y o YY 81% 8.1% 14.1% 1% 80% 8.0% 95% 9.5% EBITDA 8,227 3,948 1,167 13,042 % growth Y o Y 9.5% 23.3% 17.0% 8.7% Depreciation & amortization (5,117) (7,114) (1,063) (13,223) % growth Y o Y Y 98% 9.8% 30.4% 18.3% 20.7% Interest expense (1,869) (3,359) (672) (5,791) % growth Y o Y 11.1% 28.7% 3.5% 19.6% Tax, net (685) (1,220) 47 (1,846) Current tax (134) (72) (42) (248) growth Y o Y (117) 3 9 (105) Deferred income tax (551) (1,148) 89 (1,598) growth Y o Y (16) 620 (84) 698 NIOGO 3/ 501 (8,055) (481) (8,211) growth Y o Y 129 (2,548) (364) (3,124) NIOGO excl. deferred tax 1,052 (6,907) (569) (6,613) growth Y o Y 113 (1,928) (449) (2,426) Free Cash Flow (3,476) (2,249) (2,174) (8,406) growth Y o Y (3,627) 4,145 (1,699) (1,290) Capex 8,236 7,178 1,241 16,312 growth Y o Y 2,843 (109) (557) 1,836 1/ 1/ 1/ Before eliminating inter-company transactions; 2/ Revenue from telephone and other services excluding IC revenue and network rental revenue 3/ NIOGO: Net income (loss) from ongoing operations
%FY09 %FY10 %FY11 %FY12 %YoY Service revenue +3.4% -1.2% +17.0% +14.4% +14.1% EBITDA +27.0% -13.7% -20.2% -2.4% +23.3% True Mobile Group sustains robust revenue growth Service revenue & market share 14.4% 15.0% 14.1% 14.8% 15.4% 15.3% 16.0% 22,796 23,575 23,284 27,249 31,184 22,872 26,093 Service revenue % revenue market share (2,883) (3,244) NIOGO (624) (1,314) (1,411) (2,258) (4,811) (4,979) (6,550) (6,907) (5,507) (6,173) (7,308) (8,055) NIOGO excl. deferred income tax NIOGO 20 EBITDA & EBITDA margin 24.3% 27.7% 24.0% 15.1% 10.8% 10.4% 10.9% Capex 15,954 5,691 7,226 6,233 4,974 4,852 3,203 3,948 Net IC (845) (32) +181 (98) (1,182) (761) (1,001) 4,232 2,637 3,429 8,643 7,287 7,178 3,880 2,762 3,667 4,929 2,419 894-2,736 TrueMobile EBITDA EBITDA margin Cash flow from operations Capex
Postpaid continues its strong momentum True Mobile subscribers & market share 24.3% 24.6% 24.5% 24.8% 25.3% 25.4% 25.2% Prepaid vs. postpaid subscribers 000 subs 2,930 17,118 18,940 20,972 19,460 22,087 88% 87% Postpaid 971 1,226 1,313 1,814 2,559 14,757 15,801 2,361 13,786 14,575 15,805 17,127 18,414 17,983 19,465 Prepaid 12% 13% 21 Net adds +2,677 +1,044 +1,317 +1,822 +2,032 +1,404 +1,422 Prepaid Postpaid % market share ( 000) 9M12 9M13 True Mobile postpaid revenue True Mobile prepaid revenue 4,930 5,807 6,332 705 1,082 1,503 4,225 4,725 4,829 13,664 9,973 5,599 2,980 6,993 8,065 13,688 9,616 6,668 3,726 5,890 7,020 15,206 15,195 14,194 14,439 14,947 1,974 2,052 2,030 2,334 3,437 13,232 13,143143 12,164 12,105 11,511 11,390 10,192 2,545 3,126 8,845 7,066 Voice Non-voice Voice Non-voice
%FY09 %FY10 %FY11 %FY12 %YoY Service revenue +1.5% -1.3% +3.2% +4.7% +8.1% EBITDA -3.8% -0.5% +2.3% +1.2% +9.5% Solid broadband performance fuels TrueOnline s revenue and profit Service revenue NIOGO 25,989 26,387 26,043 26,876 28,126 10,179 8,564 7,538 6,812 6,517 20,817 22,499 1,201 4,906 4,631 1,000 9,998 10,573 11,532 13,021 14,336 10,711 12,256 760 45 (101) 301 5,812 7,250 6,973 7,043 7,274 5,200 5,611 1,144 1,260 938 1,052 427 462 372 501 22 2008 2009 2010 2011 2012 Convergence & others 9M12 9M13 Broadband & other Internet services Traditional voice (fixed-line, payphone, PCT) EBITDA & EBITDA margin NIOGO excl. deferred income tax NIOGO Free cash flow 38.1% 36.4% 36.5% 35.5% 33.7% 34.2% 35.1% 10,195 9,804 9,751 9,973 10,089 7,515 8,227 9,011 6,558 5,392 5,104 6,256 8,695 2,408 2,551 3,397 3,087 8,236 5,393 5,543 4,760 EBITDA EBITDA margin Cash flow from operations Capex
%FY09 %FY10 %FY11 %FY12 %YoY Broadband revenue +5.1% +8.6% +15.1% +15.0% +18.2% Broadband subscribers +10.6% +14.6% +13.6% +17.6% +15.0% DOCSIS boosts strong broadband Internet growth Broadband revenue Broadband customers & ARPU 728 701 707 699 710 722 Bt/sub/mo 12,258 000 subs 1,570 1,521 1,749 1,335 8,117 8,531 9,262 10,659 9,116 10,775 1,175 927 1,026 23 Nationwide Broadband market share 3BB 28% Others 3% TOT 32% By no. of subs Source: NBTC (as of 2Q13) True 37% Broadband customer Blended ARPU 65% 4% 15% 5% 11% 9M12 Subscriber by speed* < 6 Mbps 62% 6 Mbps 7-9 Mbps 10 Mbps > 10 Mbps 6% 2% 21% 9% 9M13 *Connection speed for the standard package (Bt599/month) was upgraded from 7 Mbps to 10 Mbps in Oct.1,12 12
%FY09 %FY10 %FY11 %FY12 %YoY Service revenue +1.1% +0.5% +0.9% +8.2% +8.0% EBITDA -1.7% -11.5% -3.7% -12.1% -17.0% Subscription, sponsorship drives revenue YoY Service revenues 9,431 9,533 9,585 9,669 10,463 74 482 869 992 910 707 769 831 1,562 8,426 8,549 8,334 8,131 8,032 7,464 8,063 644 624 964 1,211 5,876 6,208 EBITDA & EBITDA margin 26.1% 27.0% 23.7% 22.7% 18.4% 18.5% 14.3% 24.8% 2,666 2,622 2,322 2,236 1,966 1,406 1,167 Advertising Music entertainment & Others Subscription & installation 1,166 1,130130 983 1,020 516 674 294 354 NIOGO 37 (4) (121) (569) (117) (481) NIOGO excl. deferred income tax NIOGO 1,494 1,520 614 232 552 681 Free cash flow 2,329 2,078 1,862 EBITDA EBITDA margin w/o TVS extra item Note: 2009 includes the reversal of over-accrued content-related costs (Bt207mn) Cash flow from operations Capex 1,430 1,799 1,323 1,241 (933) 24