Investor Presentation Plc. June 2019

Ticker: ADVANC (SET) AVIFY (ADR) Add AIS IR LINE@ AIS: Digital Life Service Provider

Lead and digitally transform in Grow stronger in Partner to offer differentiated “Mobile” “Fixed broadband” “Digital service/platform”

Mobile revenue market share Subscriber market share Focused on five key areas (market size of approx. 8.7mn) 29% 48% 34% 1Q19 16% 1Q19 Mobile 23% 9% Enterprise money 41% 1Q19 breakdown Video IoT Bt31.6bn prepaid postpaid Source: Operators’ reports 3% Others 3% Other 25% 21% 5th year of operation in 2019 platforms Voice 44%

72% Non- 79% covering 57 key cities out of voice 52% 77 provinces Insurance Game expect to cover 7mn homes Mobile revenue subs % to mobile Advertising 41.5mn revenue passed out of total 21.5m Digital life servicehouseholds provider with convergence products

Mark leadership in mobile data Expand access and convergence Pursue long-term growth with • Nationwide // coverage to homes integrated services with focus on network quality • Leverage existing nationwide fibre • Emphasize partnership & • Competitive in retaining both infrastructure ecosystem revenue and subscriber scale • Defensive value to core mobile • Leverage the large sub base and business telecom infrastructure

2 1Q19 Overview: Competitive in mobile while strongly grew in non-mobile

Core service revenue: grew 2.5% • Revenue +1.1% YoY, +0.4% QoQ while discontinuing fixed-speed YoY driven by FBB and enterprise Mobile unlimited subscriptions • 322k net addition with data consumption of 11.4 GB/month +2.5% 33,962 (Bt mn) 33,147 1,119 • Robust revenue growth of +27% YoY, +6.3% QoQ driven by 64.5k Others 926 +21% net addition 1,288 FBB 1,013 +27% • Focused on FMC and high-valued mobile customers FBB

Mobile Enterprise: 31,208 +1.1% 31,555 • Maintained high-single digit growth for FY19, supported by end- Digital to-end product proposition combined with CSL services Consumer: • Established insurance broker company as point of online sale • Made presence in eSports for future monetization 1Q18 1Q19

EBITDA and margin: continued cost control Net profit: pressured by investments

46.2%* (Bt mn) 8,037 -5.3% 43.1%* 7,615 • +10% YoY from mobile Network & FBB expansion Flat (Bt mn) 18,905 18,906 OPEX • -1.6% QoQ from cost (excl. TOT) control

1Q18 1Q19 • +7.1% YoY from ad. SG&A and handset campaigns • -5.3% YoY from network and license • -2.6% QoQ driven by D&A lower ad. • +11% QoQ following improved 1Q18 1Q19 EBITDA *Normalizing impact from TOT partnership, margin would be 45.5% in 1Q19 vs 46.9% in 1Q18. 3 FY19 Pre-TFRS 15 Guidance (maintained)

FY19 guided items Guidance Rationale

Core service revenue Mid-single digit • Mobile: stay competitive in maintaining business scale growth driven by 4G and penetration in growing segments • FBB: deploy FMC (Fixed- Mobile Convergence) targeting 1mn subscribers milestone • Enterprise: gain share in mobile airtime and EDS while growing in Cloud/DC/ICT managed services

EBITDA margin Stable from last year • Allocate sufficient capital to retain and expand scale in (43.4% in FY18) respective businesses • Optimize OPEX, offset with cost to support network growth in all businesses Budgeted CAPEX Bt20-25bn, of which • Focus on 4G capacity expansion incorporating - (excludes spectrum Bt4-5bn allocated for compatible architecture payment) FBB • Expand last miles to serve 1mn FBB customers

Dividend policy Minimum 70% payout • Preserve financial health and flexibility for future growth ratio

4 Mobile: Revenue grew softly from price competition

Revenue growth remained challenging Strong net addition while 4G penetration continued uptrend Mobile revenue (Bt bn) 1Q19 Mobile revenue mix

+1.1% YoY Postpaid, 46% 4G Penetration on total base +0.4% QoQ 57% 59% 63% 31.2 31.4 31.6 50% 54%

Prepaid, 54% Net subscriber addition (‘000) 1Q18 4Q18 1Q19 Prepaid Postpaid 360 347 Discontinued low/mid postpaid fixed-speed plans 227 206 354 Fixed-speed Full 4G speed 192 Old : New : 175 -32 unlimited with limited data -233 -161 Bt600 6Mbps Bt599 14GB 1Q18 2Q18 3Q18 4Q18 1Q19

Blended VOU (GB/data sub/month) %QoQ growth • Maintained strong postpaid growth 13% 17% 13% 7.9% 4.6% underpinned by demand for 4G and handset campaigns. • Prepaid softened due to aggressive data 10.1 10.9 11.4 7.6 8.9 plans in the market. 1Q18 2Q18 3Q18 4Q18 1Q19 • Continued to gain improving awareness in teen/tourist segments • Data consumption grew more reasonably following barring take-up of fixed-speed plans

5 FBB: Competitively grew while focusing on FMC

Revenue remained healthy growth Focused on quality acquisition

Fixed broadband revenue (Bt mn) ARPU (Bt/month) Beginning Net addition (‘000) subscriber (‘000) 618 610 795 573 574 563 731 677 65 1,212 1,288 +27% YoY 623 54 1,013 1,094 1,117 572 53 +6.3% QoQ 52 51 731 623 677 521 572

1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 • Maintained strong revenue growth but softened ARPU • Gained 65k subscribers in 1Q19, highest in 7 following FMC offering and price competition quarters

Guaranteed service quality for gamers Continued to offer FMC and ramped up operations

Of 795k subscribers FMC, 26% • Focused on cross selling Separate network between eSports Package Gaming and convergence offerings

For Home Use Seamless connectivity Non-FMC, 74% and Low Latency 100/100Mbps Bt790 • Facilitated customers using DL Speed = UL Speed For Gaming online service via “AIS Fiber full efficiency 100/100Mbps Line Connect”

6 Digital service: Expanded strategic digital services for both enterprise and consumer

Increased capabilities in enterprise segment Strengthened engaging consumer platforms

• Maintained target to achieve high-single digit growth in 1 FY19 for enterprise segment Video • Debuted the first eSports channel • Strategic cooperation with business partners 2mn active users in on AIS PLAY and AIS (March-19) PLAYBOX

• Collaborated with China Unicom 5.5mn to provide local/international data connectivity 2 4.5 Active Mobile money Registered, but not active 1.0 • Pioneered with Provincial Electricity Authority to launch Solar Mar-19 Rooftop IoT solution • Continued expanding sub base

• Established 5G Garage Innovation LAB 3 • Established an insurance Insurance broker company to be a point of online insurance sale

4 • Targeted advertisement on Advertisement partner’s websites

• Cooperated with Faculty of Engineering, Chulalongkorn University, with the support from the 5 • Made presence in “eSports” to NBTC to research and test 5G technology. Games support game ecosystem and further monetize

7 Continued highly-recognized in brand and customer engagement Ranked World’s Strongest Telecoms Brand Most retweeted hashtags in 2018

• Awarded “World’ Strongest Telecoms Brand” by Brand Finance with a brand strength index (BSI) • Received “2018 Most engaged brands score of 90.0 out of 100, highest in in Thailand” from Twitter 300 most valuable telecoms brands Mark #1 in brand Engaged with digital users on social media • Measured by the leadership Investment efficacy of a brand’s performance: Equity • Marketing investment • Stakeholder equity Performance • Business performance

• The only brand in the industry globally to post • Best Brand Performance on Social Media, a AAA+ rating Social Media Platform and Media Campaigns by Thailand Zocial Awards 2019

8 Ongoing cost management supported profit growth QoQ

EBITDA and net profit gradually improved sequentially

YoY EBITDA (Bt mn) Flat YoY

18,905 815 18,906 149 433 222 10 • YoY, EBITDA was stable mainly from higher 46.2% 43.1% network OPEX and localized marketing margin margin EBITDA Core Cost of SGA Net Others EBITDA activities, offset by revenue improvement. 1Q18 service service sale 1Q19 revenue

(Bt mn) QoQ EBITDA +4.6% QoQ

279 131 185 41 199 18,071 18,906 • QoQ, EBITDA improved from slight revenue growth, optimized network OPEX, 40.5% 43.1% and lower advertisement. margin margin EBITDA Core Cost of SGA Net Others EBITDA 4Q18 service service sale 1Q19 revenue

Net profit (Bt mn) -5.3% YoY +11% QoQ 8,037 8,005 7,615 6,800 6,849 • Net profit remained pressured by mobile & FBB depreciation and license amortization, but trended better in past 3 quarters.

1Q18 2Q18 3Q18 4Q18 1Q19

9 Maintained financial flexibility for future growth

Balance Sheet 1Q19 Cash flow

(Bt bn) (Bt bn) Cash increase Cash decrease others A/P goodwill spectrum Operating Investing Financing Net cash 3 18 39 spectrum license 21.1 license payable 110 68 11.4 Assets Liabilities 5.9 3.1 240 0.5 0.5 0.2 0.2 B/S 297 1Q19 103 interest-

bearing Cash

Income Others

debt paid tax CAPEX

128 flow cash borrowings

Equity Operating

increased Repayment of Repayment

57 paid Interest PPE 29 cost Finance Stable32 18 25 others 20 retained earnings A/R cash others Operating cash flow in 1Q19 remained strong to support network investment and borrowing repayment 1.1x 1.8x Investing cash flow was Bt3.1bn while FY19 CAPEX is maintained at Bt20-25bn Net debt to EBITDA Interest bearing debt to Equity Average finance costs = 3.0% p.a. • Maintained investment grade credit ratings • Fitch: national rating AA+ (THA), outlook stable 0.6x 53% • S&P: BBB+, outlook stable Current ratio Return on Equity

10 License payment and debt repayment schedule

Spectrum license payment schedule Debt repayment Schedule

900x10MHz license payment 26% 1800x20MHz license payment • All in THB currency Bt103bn • S&P rating: BBB+ • Avg. cost of debt = 3.0% p.a.

(Bt bn) 62.7 74%

Float rate Fixed rate

(Bt bn) 14.8 13.9 13.4 14.4 11.2 11.8 7.9 9.8 4.0 5.3 3.1 0.8 4.0 3.1 3.1 2019 2020 2021 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Total of Bt70bn toward 2021 Total of Bt103bn toward 2028

11 APPENDIX

12 FY19 Outlook Mobile: Maintain leadership and stay competitive to retain scale Mobile

Revenue Market Share Trend

49.6% 48.6% 48.3% • Retain business scale in both 26.6% 25.9% 27.6% subscriber and revenue • Optimize and digitize operation 23.8% 25.4% 24.2%

2016 2017 2018

FBB Branding Offering Network Customer Investment Management

• Aim to be the brand • Gain fair share in • Ensure effective • Revamp points and for digital prepaid via use of spectrum privileges population segmentation and and future-proof • Implement predictive postpaid via CVM investment models Digital Service

13 FY19 Outlook FBB: Focus on FMC to win homes

Mobile FMC Mobile Fixed Mobile Convergence • 2019 target: 1mn subscribers • Move to ARPH (average FBB CVM Customer Value revenue per household) Management

Investment Growth strategies FBB • Investment of Bt4-5bn per annum • Deploy FMC and CVM to drive customer Drive by our Allocated base and total customer value • 70% of investment occurs when capabilities to CAPEX to Bt4-5bn • Cross sell with targeted mobile subscriber capturecustomer request to connectin 2019 70% last base demand miles • Target to drive revenue and • Acquisition focus in selected segments profitability growth over mid to long and targeted area term • Utilize strength of pull channels to gain quality subscribers • Ensure end-to-end service quality

Digital Service

14 FY19 Outlook Digital Service: New strategic offerings in both consumer and enterprise Mobile

Consumer Enterprise : Leverage and enhance customer base via partner : Integrated services of Telecom-ICT-Digital platform

Telco Mobile services Game Insurance Data network

ICT Products Digital services service Mobile wallet s Video Cloud IoT DC/ICT Solutions FBB 41M Cyber security customers

+ Others AWN+CSL Capabilities Partners Advertisement Other related services + Drive quick learning curve

Digital Service

15 1Q19 Financial Highlights

Pre-TFRS 15 Post-TFRS 15 Amount Bt mn 1Q18 4Q18 1Q19 %YoY %QoQ 1Q19 difference Mobile revenue1) 31,208 31,426 31,555 ▲1.1% ▲0.4% 30,678 (878) FBB revenue 1,013 1,212 1,288 ▲27% ▲6.3% 1,288 -

Other revenues1) 926 1,045 1,119 ▲21% ▲7.0% 1,078 (40)

Core service revenue 33,147 33,683 33,962 ▲2.5% ▲0.8% 33,044 (918)

IC and equipment rental 1,418 3,202 2,995 ▲111% ▼6.5% 2,995 -

Service revenue 34,565 36,885 36,957 ▲6.9% ▲0.2% 36,039 (918)

SIM and device sales 6,368 7,699 6,867 ▲7.8% ▼11% 7,222 355

Total revenue 40,933 44,584 43,824 ▲7.1% ▼1.7% 43,262 (563)

Cost of service (17,281) (20,383) (19,817) ▲15% ▼2.8% (19,817) -

SG&A (6,336) (6,968) (6,786) ▲7.1% ▼2.6% (6,262) (524)

EBITDA 18,905 18,071 18,906 flat ▲4.6% 18,868 (39)

EBIT 10,826 9,152 10,059 ▼7.1% ▲9.9% 10,021 (39)

NPAT 8,037 6,839 7,615 ▼5.3% ▲11% 7,570 (45)

Sales margin -1.1% -4.3% -4.2% ▼310bps ▲8bps 0.9%

EBITDA margin 46.2% 40.5% 43.1% ▼300bps ▲260bps 43.6%

EBIT margin 26.4% 20.5% 23.0% ▼350bps ▲240bps 23.2%

NPAT margin 19.6% 15.3% 17.4% ▼230bps ▲200bps 17.5%

1) Reclassified some revenues from content in FY18 previously booked under other service revenue to mobile revenue

16 Impact from TFRS 15 adoption

Subsidy Contract Type I Subsidy Contract Type II

• Subsidy booked in marketing expense is capitalized as contract • Subsidy booked as negative device margin requires a re- asset and amortized against service revenue over the contract allocate between service and device revenues by fair values • Results in lower service revenue and lower marketing expense • Results in lower service revenue and higher device sale

Pre-TFRS 15 Post-TFRS 15 Pre-TFRS 15 Post-TFRS 15

Service revenue Service revenue Service revenue Service revenue

Subsidy Device sale Device sale (under marketing expense) Device sale Re-allocate Device sale by fair values Subsidies under Amortized negative device against service margin revenue over contract period Device cost Device cost Device cost Device cost Subsidy (under marketing expense) Contract asset

Net impact between Pre-TFRS 15 and Post-TFRS 15 for 1Q19

Profit and Loss Balance Sheet Cash Flow

Service Device SG&A Contract DTA Retained Cash flow revenue sale asset earnings

-918mn +355mn -524mn +1,639mn -328mn +1,311mn No impact

17 1Q19 Revenue Breakdown

Mobile revenue* Fixed broadband revenue Other revenues* (Bt bn) (Bt bn) (Bt bn) +1.1% YoY +0.4% QoQ +27% YoY +21% YoY +6.3% QoQ +7.0% QoQ 31.6 31.2 31.4 1.2 1.3 1.0 0.9 1.0 1.1

1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 • Driven by postpaid segment and • Expanded subscriber base to 791k • Growth in enterprise sales and improving subscriber trend with total following 7mn homes passed in 57 acquisition of CSL in Feb-18. net addition of 322k in 1Q19. key cities

IC and equipment rental Net Sales & margin

(Bt bn) (Bt mn) % sales margin -1.1% +111% YoY -4.3% -4.2% -6.5% QoQ 3.2 3.0 -69 1.4 -332 -291

1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 • YoY increased from equipment rental • Continued handset campaigns from partnership with TOT. QoQ, declined from lower IC revenue.

*Reclassified some revenues from content in FY18 previously booked under other service revenue to mobile revenue

18 1Q19 Cost Breakdown

Regulatory fee D&A Network OPEX

(Bt bn) % to core service revenue (Bt bn) (Bt bn) +9.5% YoY +35% YoY -4.9% YoY -0.9% QoQ +0.1% QoQ -1.2% QoQ 8.8 8.7 7.4 7.4 1.5 1.4 1.4 7.9 5.5

4.5% 4.2% 4.1%

1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19

• Regulatory fee to core service • Increased YoY from investment in • YoY increased mainly from TOT revenue remained at 4.1% network as well as new 1800MHz partnership. Normalized network OPEX license would grow 10% YoY but drop 1.6% QoQ.

Marketing expense Administrative & others (Bt bn) % to total revenue (Bt bn)

+15% YoY +2.7% YoY -4.6% QoQ -1.3% QoQ 2.7 2.6 4.3 2.3 4.1 4.2

5… 6.1% 5.9%

1Q18 4Q18 1Q19 1Q18 4Q18 1Q19

• Rose YoY from advertisement and low • Increased 2.7% YoY but declined 1.3% spending level in 1Q18 but dropped QoQ mainly due to staff cost. QoQ due to lower advertisement.

19 Mobile: net addition continued positive along with rising data consumption

Subscribers (mn) postpaid prepaid ARPU (Bt/sub/month) postpaid prepaid blended

577 573 561 571 564 529 32.4 32.3 32.6 33.0 33.0 259 254 255 253 246 184 258 184 179 176 174 174 7.6 7.8 8.0 8.2 8.5

1Q18* 2Q18* 3Q18* 4Q18* 1Q19 1Q19 (TFRS15) *Reclassified some revenues from content in FY18 previously booked under other Net addition (‘000) service revenue to mobile revenue 360 347 354 227 206 192 175 VOU (GB/data sub/month) -32 -233 -161 12.7 14.0 14.4 10.9 10.9 11.4 9.2 8.9 9.2 10.1 9.8 10.3 7.07.6 8.2 1Q18 2Q18 3Q18 4Q18 1Q19

• Mobile subscribers was at 41.5mn, increasing 1Q18 2Q18 3Q18 4Q18 1Q19 322k in 1Q19. • Postpaid subscribers grew 354k QoQ, • Blended ARPU was Bt253, slightly declining from underpinned by attractive handset campaigns. aggressive data plans in the market. • Prepaid subscribers decreased 32k QoQ, mainly • Blended VOU softly increased to 11.4GB following from market competition. the barring of fixed-speed unlimited subscriptions.

20 Mobile price plans: Gearing toward full-speed plans

Postpaid: Full 4G speed Prepaid: The ONE SIM

Call all Required Monthly Throttled Total internet networks Enjoy Free Top-up Bundle Fee (Bt) speed (mins) (Bt) 299 1GB 100 150

399 4GB 150 (Voice: 128kbps Bt1.4/sec 499 9GB 200 5GB for 750MB for Unlimited 599 14GB 250 Data: AIS PLAY YouTube WiFi 1 month Bt1.5/MB) and JOOX 699 18GB 300 6 months 384kbps 899 28GB 400 1,099 650 Prepaid: SIM2Fly

1,299 850 1 month Required Unlimited Unlimited - 1,599 1,200 Top-up Bundle 3 months (Bt) 1,999 2,000 399 6GB of data for 8 days in Asia & Australia • Attract new data users and encourage higher ARPU 899 6GB of data for 15 days globally subscriptions through premium VDO contents 2,799 15GB of data for 1 year globally • Serve high-end heavy data users with real unlimited max speed experience *Voice call: Bt6/minute for all packages • Offer various segmented SIMs to cater different needs • Leverage bundling services to encourage recurring top-up

21 Updated: May-19 Mobile market share by subscribers

Total subscriber (mn)

92 96 90 90 92 75 83 83 25% 25% 25% 23% 27% 30% 32% 25% 29% Operator 3 32% 30% 31% 27% 25% 23% 31% Operator 2 AIS 44% 43% 45% 46% 46% 46% 45% 45%

2011 2012 2013 2014 2015* 2016 2017 2018

Postpaid subscriber (mn) Prepaid subscriber (mn)

81 83 74 73 68 68 70 70 22 24% 24% 20 25% 18 21% 25% 29% 35% 25% 30% 14 35% 30% 29% 11 13 34% 32% 31% 27% 7.4 9.1 33% 31% 24% 23% 31% 28% 28% 23% 29% 29% 29% 30% 32% 31% 47% 32% 31% 43% 45% 48% 48% 47% 47% 37% 37% 37% 44% 45% 41% 39% 39% 38%

2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015* 2016 2017 2018

* In 2015, sub base of the industry was affected by the adjustment of prepaid sub reporting to reflect only active ones. The decrease in sub base also caused by NBTC’s announcement requiring prepaid sub to register their SIMs. The SIMs that failed to register by the deadline were terminated.22 AIS Fibre: Competitive price plans targeting pure internet, game and FMC customers

Home Broadband eSports Power4 MAXX

• Basic pure internet pack for • Target gamers by • Offer FMC including fibre broadband, early broadband adopters separating network between mobile data, premium content, and including ADSL users Gaming and Internet Super WiFi

Updated: May-19

23 Digital content: More varieties and exclusivities

Introduced content packages to attract customers with different preferences e.g. sports, family, movies at more affordable prices on both AIS PLAY and AIS PLAYBOX.

Mobile PLAY PREMIUM PLAY MOVIES PLAY SERIES PLAY NEWS Access to all HBO, CINEMAX, WARNER, BLUEANT HEADLINE exclusive content WARNER, BLUEANT NEWS, CNN Bt299/month Bt199/month Bt99month or Bt99month or Bt5/day Bt5/day

Fixed broadband

Ultimate Ultimate World class Thrilling entertainment movies & series cartoons sports matches in all forms Bt399month Bt299month Bt199month Bt599/month 24 Updated: May-19 Historical profitability and CAPEX trend

Industry AIS

45% 42% 42% 44% 46% 40% 45% 43%

36% 32% 32% 33% 33% 32% 36% 36% EBITDA margin EBITDA 2011 2012 2013 2014 2015 2016 2017 2018

Industry AIS

25% 24% 24% 24% 20% 19% 14%18% 13% 13% 14% 18%

9% 9% 8% 6% NPAT margin NPAT 2011 2012 2013 2014 2015 2016 2017 2018

AIS’ CAPEX to service revenue ex. IC AIS’ CAPEX (Bt bn)

41% 32% 24% 28% 27% 15% 6% 9%

CAPEX 48 41 33 32 6 10 28 20

2011 2012 2013 2014 2015 2016 2017 2018

Source: company data 25 Distribution Channel Structure

AIS Branded Shop Telewiz: exclusive branded AIS Buddy (run by both AIS and partners) shop by partner 150+ Shops 430+ Shops 1,100+ Shops

Exclusive Partner Traditional Channel Electronic Distribution Channel

650+ Shops 19K+ Shops 400K + Points

Modern Channel

3,000+ Shops

26 Contact us IR website: http://investor.ais.co.th Email: [email protected] Tel: +662 029 5014

Disclaimers 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.