Investor Newsletter NEXT T GENERATION. Volume 4/2018 TEAM. Scan QR Code to be friend with investor relations on

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1 NEXT T GENERATION TEAM Investor Newsletter Volume 4/2018 Scan QR Code to be friend with investor relations on LINE@

2 CEO MESSAGE Dear Shareholders, Since early 2018, I have addressed three important elements for AIS to become THE NEXT GENERATION which are 1) Building and serving quality network (Network) 2) Investment in new businesses, both CSL and Rabbit LINE Pay (Economy) 3) Serving exclusive experience to customers (experience). For this quarter, it is about AIS personnel (Team) which I believe is the most important part to be successful in Digital Transformation, and is one of the strategies that AIS impels and develops for its sustainable growth. AIS has internally established AIS Academy to enhance necessary capabilities in digital era for its staff. To be ready as a center to support Thailand and Thais, we see this as an important task for the long term to encourage people to strongly keep up with the rapid change of technology. In the past nine months, our core service revenue increased 3.9% YoY amid high competition. Our businesses keep growing, including mobile, fixed broadband, and enterprise while we continuously manage our cost, resulting in a 2.1% increase of net profit to Bt22,843mn. We expect our full-year EBITDA margin to be within a 45-47% range as given in the guidance. Until next time, Somchai Lertsutiwong Chief Executive Officer Investor Relations 2

3 9M18 PERFORMANCE Revenue and profit continued to grow M M M % M % M % margin +2.1% M18 Investor Relations Core service revenue (Bt bn) Grew from mobile, FBB, and consolidation of CSL EBITDA (Bt bn) Continued opex optimization, reduced marketing expense to focus quality revenue Net profit (Bt bn) Followed growth in EBITDA despite higher D&A from continued 4G and FBB investments 2018 Guidance % 2018 Guidance EBITDA margin of 45-47% 2018 Guidance CAPEX of approx. Bt25bn Operational highlights Mobile Business Revenue market share 48% Average data usage 10 GB/month Fixed Broadband Business # of subscribers 676,700 Subscriber market share 8% 4G subscriber penetration 57% Revenue proportion to total service revenue 3.4% Please see 3Q18 results from MD&A at 3

4 QUARTERLY HIGHLIGHT (I) AIS partnered with Jaymart, strengthening distribution channel AIS established an exclusive partnership with Jaymart to offer digital goods and services in over 400 Jaymart branches, especially in key areas such as malls, leading community malls, and IT service centers. This helps expand postpaid registering channels and collaborate to lay strategic planning to utilize over 3,000 Singer direct sales in the future. AIS Distribution Channel AIS Shop, Telewiz, and AIS Buddy, over 1,600 branches Partnership with exclusive brands,over 650 branches KIOSKs and modern trades, over 22,000 branches Other electronic channels, over 400,000 touch points Investor Relations 4

5 QUARTERLY HIGHLIGHT (II) AIS, with Nokia, Huawei, and ZTE, was allowed by the NBTC as the first operator to test 5G technology on GHz spectrum. AIS is ready for Thais and business sector to experience 5G, of which use cases are being developed for commercial, to prepare for the coming technology. Currently, AIS as a market leader has launched NEXT G, the fast speed infrastructure, and plans to invest in new equipment such as Massive MIMO 32T32R, as well as expands NB-IoT in various industries. In 5G the First LIVE in Thailand by AIS event, 5G will be demonstrated through 5 innovations which are; 1. 5G Super Speed showing potential of speed and transmission 2. 5G Ultra Low Latency showing fast-response efficiency 3. 5G for Industry 4.0 showing robot that will take role in the industry G Virtual Reality showing watching video in virtual reality 5. 5G FIFA Virtual Reality showing soccer competition between human and robot. For investors who are interested, please attend: AIS DC, 5 th floor, The Emporium Today 15 th December 2018 Investor Relations 5

6 SUSTAINABLE BUSINESS STRATEGY With the vision to become the most-admired digital life service provider, AIS has established 7 strategies, paving its way to sustainable business operation Sustainable Development at AIS Reduce & recycle waste from operation as well as encourage customers to dispose e-waste properly Waste Digital Innovation Economy Innovate digital products & services to improve quality lives and promote businesses in Thailand Data Privacy & Cyber Security Ensure effective data governance to enhance customer value while ensuring customer trust Reduce GHG emission and utilize renewable energy in most possible extent in our operation Emission Environment Society Human Capital Development Drive AIS human capital to pursue new strategic growth area, especially in technology businesses Establish trusted brand in cyber wellness & online safety to build healthy online space Cyber Wellness & Online Safety Social Inclusion Leverage our digital infrastructure & solutions to uplift community well-being & reduce digital divide Investor Relations 6

7 SUSTAINABLE BUSINESS STRATEGY on human capital development in 3 axes Sustainable Development at AIS Axis 1: Talent attraction & retention Of whom are ready for technology and digital transformation such as in Blockchain, AI, data analytics, and able to impel business to grow in new fields. Axis 2: Training and Development Support learning culture Anywhere Anytime Any device to improve staff s potential, allowing staff to grow in various paths consistent with business direction. Axis 3: Employee Wellbeing Take care of both mental and physical wellness, and enhance working environment as well as financial health of staff. Investor Relations 7

8 AIS WAS LISTED IN SUSTAINABILITY INDICES In 3Q/2018, AIS was listed in international sustainability indices of 1) FTSE4Good by FTSE Russel, for four consecutive years, and 2) Thailand Sustainability Index (THSI) by The stock exchange of Thailand, who initiated the index this year. AIS operates with strong adherence to continuous sustainable development. Being the industry leader, AIS establishes expertise and infrastructure to create digital innovation to serve customer s demand. Also, AIS aims to create benefit and value for community and society, encourage learning and inspiration, and adhere to eco-friendly business operation. The mentioned indices support funds investment decision, especially those who focus on long-term return. 8

9 PLAY PREMIUM PACKAGE 299 บาท/ เด อน PLAY MOVIES PACKAGE 199 บาท/ เด อน PLAY NEWS PACKAGE 99 บาท/ เด อน 5 บาท/ ว น PLAY KIDS PACKAGE 99 บาท/ เด อน 5 บาท/ ว น เพ มเต มท เพ มเต มท

10 PERFORMANCE OF ADVANC Analyst Consensus Statistics of ADVANC 27% 73% Closing price Highest price in 52 weeks Lowest price in 52 weeks Average volume in past 5 days Total outstanding shares Bt178 Bt215 Bt million shares 2,973 million shares Buy Target Price Bt219 Hold Contact Investor Relations at investor@ais.co.th or Website: P/E Dividend Yield Financial Ratios 17.3 times 4.13% / year Source: Reuters as at 27 November