Advanced Info Service Plc
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Annual Registration Statement (FORM 56-1) As of 31 December 2012 Advanced Info Service Plc. ((AADDVVAANNCC)) (Translation) Contents Page No. Part 1 Securities Information 1. Securities Information 1 2. Risk Factors 6 3. Nature of the Business 12 4. Business Operation of ADVANC and its subsidiaries 20 5. Assets used in operations 31 6. Legal Disputes 47 7. Capital Structure 51 8. Management and Corporate Governance 56 9. Internal Control, Risk Management & Internal Audit 90 10. Related Transactions 96 11. Financial Position and Operating Performance 108 12. Other Related Information 123 Part 2 Certification of Correctness of Information Attachments Attachment 1: Information of Directors, Management and Controlling Person of the Company Attachment 2: (1) Information of Directors and Managements of Major Shareholder, ADVANC, Subsidiaries, and Related Companies (2) Information of Directors of ADVANC’ Subsidiaries Attachment 3: (1) Audit Committee’s Opinion regarding the Connected Transactions (2) Audit Committee Report (3) Board of Directors’ Responsibility for Financial Statements Form 56-1 Year 2012 Advanced Info Service Plc. Part 1 Securities Information 1. General Information 1.1 General information of the Company The Company name : Advanced Info Service Public Company Limited Symbol for trading : ADVANC Registered date on the SET: 5 November 1991 Market capitalization : Baht 621,376.92 million (as of 28 December 2012) Registered capital : Baht 4,997,459,800 Paid-up capital : Baht 2,973,095,330 Total shareholders : 14,400 shareholders (as of 24 August 2012, the latest book closing date for the rights to receive dividend) Free float : 36.22% (as of 27 February 2012) Nature of Businesses : - Provide mobile telephone service in the 900MHz frequency under the digital GSM technology - Provide mobile telephone service in the 1800MHz frequency under the digital GSM technology - Provide mobile telephone service in 2.1GHz frequency under the digital UMTS technology - Import and distribute of handsets accessories - Provide voice and data communication service via telephone and optical fiber - Provide payment business via mobile phone - Distribute of cash card - Call center service - Service provider in connection with international telephone and gateway. - Networks provider and telecommunication service operator Head office : 414 Phaholyothin Road, Samsen Nai, Phayathai, Bangkok 10400 Registered No. : Bor Mor Jor. 0107535000265 Website : http://www.ais.co.th Telephone : (66) 2299 6000 Fax : (66) 2299 5165 American Depositary Receipt: ADR ticker symbol : AVIFY Exchange : Over The Counter (OTC) Depositary : The Bank of New York Mellon ADR to ORD share ratio : 1:1 ADR CUSIP number : 00753G103 Part 1 page 1 Form 56-1 Year 2012 Advanced Info Service Plc. 1.2 General information of subsidiaries as of 31 December 2012 Registered Par Value Paid-up percentage Subsidiaries Business Capital (Baht per Capital of (Million share) (Million Investment Share) Baht) Digital Phone Company Limited Service provider of digital 365.55 10 3,655.47 98.55 (DPC) mobile phone network in 1800 MHz frequency 404 Phaholyothin Center Tower, Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 6000 Fax : (66) 2299 5455 Advanced Datanetwork Service provider of online 95.75 10 957.52 51.00 1/ Communications Company Limited data communication service (ADC) (indirect subsidiary via DPC) via telephone landlines and optical fiber 408/157, Phaholyothin Place Tower, 38th Floor, Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2270 1900 Fax : (66) 2270 1860 Website : www.adc.co.th Advanced Contact Center Company Service provider of call center 27.2 10 272 99.99 Limited (ACC) 414 Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 6000 Fax : (66) 2299 5959 Advanced MPAY Company Limited Service provider of payment 30 10 300 99.99 business via mobile phone (AMP) 408/60 Phaholyothin Place Tower, 15th Floor, Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2687 4808 Fax : (66) 2687 4788 Advanced Magic Card Company Distributor of cash card 25 10 250 99.99 Limited (AMC) business 414 Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 6000 Fax : (66) 2615 3330 Part 1 page 2 Form 56-1 Year 2012 Advanced Info Service Plc. Registered Par Value Paid-up percentage Subsidiaries Business Capital (Baht per Capital of (Million share) (Million Investment Share) Baht) AIN GlobalComm Company Limited Service provider of 2 100 100 99.99 (AIN) international telephone service gateway 408/127 Phaholyothin Place Tower, 29th Floor, Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 6000 Fax : (66) 2278 7030 Website : www.ain.co.th Super Broadband Network Company Network operator and a 3 100 300 99.99 Limited (SBN) telecom service operator i.e. Service provider of internet 408/60 Phaholyothin Place Tower, (ISP), international & national 15th Floor, Phaholyothin Road, internet gateway, IPLC and IP Samsennai, Phayathai, Bangkok VPN, voice over IP, and an IP Tel : (66) 2299 6000 television Fax : (66) 2619 8777 Website : www.sbn.co.th Wireless Device Supply Company Importer and distributor of 0.5 100 50 99.99 Limited (WDS) handsets and accessories 404 Phaholyothin Center Tower, Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 5777 Fax : (66) 2299 5200 Advanced Wireless Network Company Network operator, a telecom 3.5 100 350 99.99 Limited (AWN) service operator and computer system service provider. 408/60 Phaholyothin Place Tower, Currently, AWN received an 15th Floor, Phaholyothin Road, Internet License Type I, Samsennai, Phayathai, Bangkok Telecommunication Business Tel : (66) 2299 6000 License Type III, and 2.1GHz Fax : (66) 2687 4986 License from NBTC Mobile Broadband Business Company Currently not start the 1.2 100 120 99.99 Limited (MBB) operation (indirect subsidiary via AWN) 408/60 Phaholyothin Place Tower, 15th Floor, Phaholyothin Road, Samsennai, Phayathai, Bangkok Advanced Mobile Broadband Currently not start the 1 100 100 99.99 Company Limited (AMB) operation (indirect subsidiary via MBB) 404 Phaholyothin Center Tower, Phaholyothin Road, Samsennai, Phayathai, Bangkok Part 1 page 3 Form 56-1 Year 2012 Advanced Info Service Plc. Registered Par Value Paid-up percentage Subsidiaries Business Capital (Baht per Capital of (Million share) (Million Investment Share) Baht) Advanced Internet Revolution Service provider of internet 24 10 240 99.99 Company Limited (AIR) 408/60 Phaholyothin Place Tower, 15th Floor, Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 6000 Fax : (66) 2299 5200 MIMO Tech Company Limited Operate IT, and content 0.5 100 50 99.99 (MMT) aggregator businesses 1291/1 Phaholyothin Road, Samsennai, Phayathai, Bangkok Tel : (66) 2299 6000 Fax : (66) 2299 5165 Fax Lite Company Limited (FXL) Operate in acquiring and/or 0.01 100 1 99.97 lease building, and related 1291/1 Phaholyothin Road, facilities for Samsennai, Phayathai, Bangkok Telecommunications Business Tel : (66) 2299 6000 Fax : (66) 2299 5165 Advanced Broadband Network Currently not start the 0.01 100 1 99.97 Company Limited (ABN) operation 408/60 Phaholyothin Place Tower, 15th Floor, Phaholyothin Road, Samsennai, Phayathai, Bangkok Registered Par Value Paid-up percentage Joint Venture Business Capital (Baht per Capital of (Million share) (Million Investment Share) Baht) Clearing House for Number Jointly invested, Operate the 0.02 100 2 20.00 Portability Company Limited (CLH) Information System and the centralized database for the 10/97 6th Floor, The Trendy Project, mobile portability service Soi Sukhumvit 13 (Sangchan), Klongtoey nua, Wattana, Bangkok Tel : (66) 2646 2523 Fax : (66) 2168 7744 Bridge Mobile Pte. Ltd. (BMB) Jointly invested, provide 23 USD 1 USD 23 10.00 international roaming service Million 750 Chai Chee Road, #03-02/03, (incorporated in Singapore) Technopark @ Chai Chee, Singapore 469000 Tel : (65) 6424 6270 Fax : (65) 6745 9453 1/ The remaining 49% shareholding is non-related person 2/ On 7 February 2013, BOD’s resolutions of Advanced Info Service Plc. approved the dissolution of two subsidiaries; Mobile Broadband Business Co., Ltd. and Advanced Mobile Broadband Co., Ltd. The dissolution currently is under the legal and liquidation process. Part 1 page 4 Form 56-1 Year 2012 Advanced Info Service Plc. 1.3 References Ordinary Share Registrar Thailand Securities Depository Company Limited The Stock Exchange Thailand Building, 62, Ratchadapisek Road, Klongtoey, Klongtoey, Bangkok 10110 Tel : (66) 2229 2800 Fax : (66) 2359 1259 Call Center : (66) 2229 2888 Auditor Mr. Winid Silamongkol Certified Public Accountant Registration Number 3378 KPMG Phoomchai Audit Limited 195, Empire Tower 48th - 51st Floor, South Sathorn Road, Sathorn, Bangkok 10120 Tel : (66) 2677 2000 Fax : (66) 2677 2222 TMB Bank Public Company Limited Debenture Registrar 3000 Phahon Yothin Road, Chatuchak, Bangkok 10900 Tel. (66) 2299 1111, (66) 2617 9111 Part 1 page 5 Form 56-1 Year 2012 Advanced Info Service Plc. 2. Risk Factors The developments in the telecommunications industry in terms of technologies, networks and communication devices, have brought about a very competitive and fast-changing environment which can create both advantage and risks for the Company. To cope with such uncertainties, it is imperative that AIS sets in place effective and proactive risk management and business strategies to ensure that the Company continues to be viable in both the long- and short-term. Focusing on organisational risk management, AIS has set up