CONTENT GLOSSARY AND ACRONYMS 001 SIGNIFICANT 192 FINANCIAL INFORMATION COMPANY BACKGROUND AND 007 BUSINESS OVERVIEW MANAGEMENT’S 198 DISCUSSION AND ANALYSIS NATURE OF BUSINESS 022 REPORT OF THE AUDIT 219 COMMITTEE FOR THE YEAR 2016 RISK FACTORS 040 REPORT OF THE COMPENSATION 221 CORPORATE AND 052 AND NOMINATING COMMITTEE OTHER SIGNIFICANT FOR THE YEAR 2016 INFORMATION REPORT OF THE CORPORATE 222 SHAREHOLDERS 080 GOVERNANCE COMMITTEE FOR THE YEAR 2016 DIVIDEND POLICY 081 REPORT OF THE FINANCE 223 COMMITTEE FOR THE YEAR 2016 MANAGEMENT STRUCTURE 082 REPORT OF THE BOARD OF 224 CORPORATE GOVERNANCE 126 DIRECTORS’ RESPONSIBILITIES FOR FINANCIAL STATEMENTS FOR THE YEAR 2016 CORPORATE SOCIAL 160 RESPONSIBILITY FINANCIAL S TATEMENTS 225 INTERNAL CONTROLS AND 176 RISK MANAGEMENT CONNECTED 179 TRANSACTIONS “Investors can find more information of True Corporation Public Company Limited from the Annual Registration Statement (Report 56-1) posted on the Securities and Exchange Commission’s website at www.sec.or.th or on the Company’s website at www.truecorp.co.th” Annual Report 2016 >> Together Stronger GLOSSARY AND ACRONYMS GLOSSARY AND ACRONYMS AC Access charge ADC Advanced Datanetwork Communications Company Limited Agreement for Joint Venture Agreement for Joint Venture in the Membership Television between MCOT (the Mass Communications Organization of Thailand, at that time) and TrueVisions Cable (Thai Cable Vision Plc., at that time) dated June 6, 1994, with subsequent additions and/ or amendments, or the Agreement for Joint Venture in the Membership Television between MCOT (the Mass Communications Organization of Thailand, at that time) and TrueVisions (International Broadcasting Corporation Plc., at that time) dated April 17, 1989, with subsequent additions and/or amendments, whichever applies in the relevant context. Agreement to Operate Agreement to Operate and Provide Services under the Digital PCN 1800 System between CAT Telecom (Communication Authority of Thailand, at that time) and TrueMove (Wireless Communication Service, at that time) dated June 20, 1996. AP&J AP&J Production Company Limited AWC Asia Wireless Communication Company Limited Beboyd BeboydCg Co., Ltd. BEC TERO TVS BEC-Tero True Visions Company Limited BFKT BFKT (Thailand) Limited BITCO Bangkok Inter Teletech Public Company Limited BMA Bangkok Metropolitan Area BPL or EPL Barclays Premier League (previously English Premier League) Broadcasting Committee Broadcasting Committee of the NBTC CAT or CAT Telecom CAT Telecom Public Company Limited True Corporation Public Company Limited 1 Annual Report 2016 >> Together Stronger CDR Call Detail Record DIF Digital Telecommunications Infrastructure Fund China Mobile China Mobile International Holdings Limited CHNP Clearing House for Number Portability Company Limited CNP Cineplex Company Limited DSI Department of Special Investigation Frequency Allocation Act Act on Organization to Assign Radio Frequencies and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 Frequency Allocation Act on Organization to Assign Radio Frequencies and to Regulate the Broadcasting Act B.E. 2543 and Telecommunications Services B.E. 2543 Gold Palace Logistics <BVI> Gold Palace Logistics Limited (Registered in foreign) Golden Light Golden Light Company Limited (Registered in foreign) Goldsky Goldsky Company Limited (Registered in foreign) GPI <BVI> Gold Palace Investments Limited (Registered in foreign) HCWML / HutchCAT Hutchison CAT Wireless Multimedia Limited HD/ HDTV high definition/ high-definition television HMSTL Hutchison MultiMedia Services (Thailand) Limited HSPA High Speed Packet Access HSPA wholesale agreement A wholesale agreement for HSPA mobile services between CAT Telecom as a wholesale operator and Real Move as a reseller, dated 27 January 2011 with subsequent additions and/or amendments HTTCL Hutchison Telecommunications (Thailand) Company Limited HWMH Hutchison Wireless Multimedia Holdings Limited 2 True Corporation Public Company Limited Annual Report 2016 >> Together Stronger IC Interconnection IC Regulation Interconnection Regulation B.E. 2549 IFC International Finance Corporation IKSC Internet Knowledge Service Center Company Limited IM Information Memorandum IMT International Mobile Telecommunications IMT 2.1 GHz License to operate international mobile telecommunications on the 2.1 GHz spectrum license spectrum JAS or Jasmine Jasmine International Public Company Limited Joint Operation Agreement Agreement for Joint Operation and Joint Investment for Expansion of Telephone Service between TOT (previously Telephone Organization of Thailand) and the Company (CP Telecommunication, at the time) dated August 2, 1991 with subsequent additions and/or amendments Joint-Venture Act Public-Private Joint Venture Act B.E.2535 K.I.N. <BVI> K.I.N. (Thailand) Company Limited (Registered in foreign) KfW Kreditanstalt fur Wiederaufbau KSC KSC Commercial Internet Company Limited MCOT MCOT Public Company Limited MKSC MKSC World Dot Com Company Limited MNP Mobile Number Portability MOA Memorandum of Agreement MOU Memorandum of Understanding MVNO Mobile Virtual Network Operator True Corporation Public Company Limited 3 Annual Report 2016 >> Together Stronger NACC National Anti-Corruption Commission NBC National Broadcasting Commission NBTC National Broadcasting and Telecommunications Commission NEC NEC Corporation (Thailand) Company Limited NOC Network Operation Center NTC National Telecommunications Commission NVDR Thai NVDR Company Limited PCN Personal Communication Network PCT Personal Communication Telephone Prospect Gain Prospect Gain Limited (Registered in foreign) PTE Panther Entertainment Company Limited Real Move or RMV Real Move Company Limited Rosy Legend Rosy Legend Limited (Registered in foreign) SD Song Dao Company Limited SM Samut Pakan Media Corporation Company Limited SMT SM True Company Limited SSV Sattellite Service Company Limited TAM Telecom Asset Management Company Limited TCJ True CJ Creations Company Limited TDS True Distribution & Sales Company Limited TE Tele Engineering and Services Company Limited Telecom Business Act Telecommunications Business Act B.E. 2544 4 True Corporation Public Company Limited Annual Report 2016 >> Together Stronger Telecom Committee Telecom Committee of the NBTC TGS True GS Company Limited TH Telecom Holding Company Limited The Company or True / TRUE True Corporation Public Company Limited TI or True Internet True Internet Company Limited TIC True International Communication Company Limited TICT True Icontent Co., Ltd. TIG True International Gateway Company Limited TIT True Information Technology Co., Ltd. TITS True Internet Technology (Shanghai) Company Limited (Registered in foreign) TKSC Telecom K S C Co., Ltd. TLP True Life Plus Co., Ltd. TM or True Multimedia True Multimedia Company Limited TMD True Media Solutions Co., Ltd. (Formerly : True Digital Media Co., Ltd.) TMR True Music Radio Co., Ltd. TMV True Move Company Limited TNN Thai News Network (TNN) Co., Ltd. TOT TOT Public Company Limited TPC True Public Communication Company Limited True Group or the Group True Corporation Public Company Limited and its subsidiaries True Incube True Incube Co., Ltd. (Formerly : KOA Company Limited) True Corporation Public Company Limited 5 Annual Report 2016 >> Together Stronger True Trademark True Trademark Holdings Company Limited (Formerly : Dragon Delight Investment Limited) True4U True4U Station Company Limited (Formerly : True DTT Company Limited) TrueMove True Move Company Limited TrueVisions Cable or TVC True Visions Cable Public Company Limited TrueVisions Group or TVG True Visions Group Company Limited TrueVisions or TVS True Visions Public Company Limited TSC Thai Smart Card Company Limited TT True Touch Company Limited TU True Universal Convergence Company Limited (Currently, True Internet Corporation Co., Ltd.) TUC True Move H Universal Communication Company Limited (Formerly : Real Future Company Limited) TUFC True United Football Club Company Limited TV True Voice Company Limited TVT True Vistas Company Limited. (Formerly: True Magic Company Limited) UCOM United Communication Industry Public Company Limited UIH United Information Highway Company Limited USO Universal Service Obligation Verizon Verizon Communications Inc. VoIP Voice over Internet Protocol WCS Wireless Communication Services Limited 6 True Corporation Public Company Limited Annual Report 2016 >> Together Stronger COMPANY BACKGROUND AND BUSINESS OVERVIEW COMPANY BACKGROUND AND BUSINESS OVERVIEW True Group’s vision, objective and long term goal True Group is Thailand’s only fully-integrated telecommunication provider and convergence leader. Its vision is to be the leading digital infrastructure that fully connects people, organizations, economies, and societies together to create sustainable value for life. True Group’s ongoing commitment is to provide high-quality and best-value offerings to consumers by focusing on network superiority, innovation and advanced technology, service excellence, and ideal combinations of its various products through convergence propositions. Convergence strategy is the key competitive advantage for True Group as it continues to fulfill customers’ various demands and lifestyles. This not only helps drive subscriber growth and loyalty but also strengthens the Group’s leading position in all key businesses. True Group seeks to elevate Thailand’s telecommunications infrastructure to be at the forefront of the international community while progressing the country towards