ADVANCED INFO SERVICE PLC

September 2015

KEY INVESTMENT FEATURES

COMPANY OVERVIEW

Advanced Info Service Plc (AIS) or ADVANC was established in 1989, and is
today the largest mobile operator in Thailand with 38 million subscribers and 97%
nationwide coverage. The company and its subsidiaries operate various
telecommunication related businesses, including a mobile network operator, an
international direct dialling service, a data communications service, etc. AIS
announced its new vision to become Digital Life Service Provider which consists
of three core businesses namely mobile, fixed broadband, and digital content.

2nd largest listed company by market capitalization

100% dividend pay-out policy
Solid operating cash flow
Growth opportunity from wireless broadband
AA+(THA) rating from FITCH and A- from S&P

2.1 GHz HSPA Network: Advanced Wireless Network (AWN), a wholly-owned

subsidiary of AIS, received a 15-year 2.1GHz license (2x15MHz bandwidth), at the
bidding cost of Bt14.6bn in December 2012. On the license scheme, service
revenues are subjected to annual license fee of 5.25% and network ownership
belongs to AWN. After eight months of expanding 3G network, we have 80%
population coverage at the end of 2013. In 2Q14, the population coverage of 97%
was already achieved.

MARKET DATA
Underlying Shares: ADVANC
Stock Symbol

ADVANC

Exchange

Stock Exchange of Thailand (SET)

Recent Price

THB 226.00 (Sep 30th, 2015)

1800 MHz Network: AWN won a license of 2x15MHz 1800MHz spectrum from
the auction held by the NBTC on 11 November 2015 at the bidding cost of
Bt41bn. The license is valid for 18 years until 2033. The 1800MHz network will be
used to deploy 4G services, expected to launch in 1Q16, to support the currently
high data consumption behavior. AWN has to conform with the regulation to
provide the network of 50% of population coverage in four years and 80% in eight
years, and is subjected to annual license fee of 5.25%.

52-week Range

THB 220 255

Market Capitalisation

THB 672 billion / USD 21 billion

(@ THB 32/USD)

Number of Shares Outstanding

2,973m

Free Float

36%

Number of Shareowners

34,071 (17th August 2015)

900 MHz GSM Network: AIS operated its cellular mobile telephone network
under a 25-year BTO (build-transfer-operate) contract with TOT Corporation Plc
(TOT) which ended in Sep-15. The 900MHz spectrum license will be auctioned by
the NBTC on 15 December 2015.

Depositary Receipts: AVIFY

ADR Ticker Symbol

AVIFY

Exchange

OTC

Depositary

BNYM (Sponsored)

AIS Fibre: AWN started fixed broadband business under the brand AIS Fibre.
The company is penetrating the low-penetrated market with a new fiber
technology. As of 3Q15, we have 26,000 customers.

ADR to ORD Share Ratio

1:1

ADR CUSIP Number

00753G103

Recent Price

USD6.31 (Sep 30th, 2015)

AIS is managed by a qualified and competent professional management team,

with over 10 years of experience in the company and a strong background in the
telecommunications industry. The Company is disciplined in its investment
approach, which is reflected by its strong financial earnings, balance sheet, and
solid cash flow from operations. This enables AIS to continue investing in its
network and internal systems to maintain its position as the largest network
coverage operator in Thailand with superior network quality.

52-week Range

USD6.23 USD7.80

PRICE PERFORMANCE

It is our long-term commitment to enhance value through prudent management

decisions, with a focus on generating sustainable growth in revenue and
profitability while maximising return to its shareholders
We continue to deliver our Quality DNAs (device, network, application, and
service) concept. Selected smart devices with bundled data packages are now
being offered to each customer segment, and local content has been created to
support smartphone users as well as the mass market. AIS will continue to create
a modern and superior customer experience at every AIS touch point throughout
our service infrastructure.

MAJOR SHAREHOLDERS

FINANCIAL HIGHLIGHTS

As of 17 August 2015

2012

2013

2014

%YoY

1. INTOUCH HOLDINGS PUBLIC COMPANY LIMITED

40.45%

145,649

146,811

148,729

1.3%

2. SINGTEL STRATEGIC INVESTMENTS PTE LTD.

23.32%

Net Profit

34,883

36,274

36,033

-0.7%

3. THAI NVDR

5.50%

EBITDA

61,436

63,691

66,428

4.3%

4. CHASE NOMINEES LIMITED

2.85%

EBITDA Margin

42.2%

43.4%

44.7%

+130 bps

5. LITTLEDOWN NOMINEES LIMITED

1.77%

(unit: THB million)

Total Revenue
(ex. construction)

51,133

51,329

62,820

22%

6. STATE STREET BANK EUROPE LIMITED

1.68%

100,968

112,026

126,351

13%

7. THE BANK OF NEW YORK MELLON

1.50%

Total Borrowing

20,915

24,169

36,341

15.6%

8. HSBC (SINGAPORE) NOMINEES PTE LTD

1.49%

Total Equity

43,542

45,893

46,864

2.1%

9. THE BANK OF NEW YORK (NOMINEES) LIMITED

1.02%

Net cash

0.19

0.39

N/A

84%

82%

79%

-300 bps

10. SOCIAL SECURITY OFFICE (2 CASE)

Total

0.89%
80.48%

EPS (THB/Share)

11.73

12.20

12.12

-0.7%

DPS (THB/Share)

10.90

12.15

12.00

-1.2%

Net Operating Cash Flow

Total Assets

Net Debt to Equity (x)

ROE

-1-

ADVANCED INFO SERVICE PLC

September 2015

OPERATIONAL HIGHLIGHTS

THAILANDS MOBILE MARKET

4Q14

1Q15

2Q15

3Q15

44.3

42

40.1

37.8

Prepaid

39.4

36.9

34.8

32.4

Postpaid

4.9

5.1

5.2

5.4

3.6%

5.5%

4.1%

5.0%

Prepaid

3.8%

6.0%

4.4%

5.4%

Postpaid

1.7%

1.7%

1.7%

1.9%

ARPU (bt/m)

216

222

234

241

Prepaid

170

175

185

188

Postpaid

608

592

587

590

269

271

283

291

Prepaid

256

260

275

283

Postpaid

373

355

342

339

As of
Subscribers (million)

Churn Rate/month

MOU (min/sub/month)

Thailand has a population of 68 million with a GDP per capita of USD

5,570 in 2014 (GDP: USD379bn). It is estimated that mobile telecom
spending is approximately 2% of GDP. As of 3Q15, the total number of
mobile subscribers were 81 million, representing a penetration rate of
119%. The prepaid identification regulation from the NBTC asking
prepaid customers to register their ID caused the total subscribers in
the industry to drop; however, this should help better reflect real
subscriber growth going forward.
In the next 3-5 years, the overall SIM penetration rate is expected to
increase further, given that there will be more second SIM users, using
the internet. In line with the global trend, growing data services and
mobile internet usage are the key revenue drivers being pushed by
more affordable and rich feature smartphones, increased socialnetworking and a variety of content and applications. Equally, the
comparative absence of a fixed-line broadband infrastructure in
Thailand is also driving mobile data demand and usage.
There are major three mobile operators (AIS, DTAC, True Move), who
command nearly 99% of the total market share and all claim to have
extensive nationwide coverage.

REVENUE BREAKDOWN
4Q14

1Q15

2Q15

3Q15

Voice

52%

49%

47%

44%

Non-voice

40%

42%

44%

47%

IR

2%

2%

2%

2%

Others

6%

7%

7%

5%

100%

100%

100%

100%

% of Service Revenue ex IC

The majority of mobile subscribers in Thailand are prepaid and account

for 83% of the total market. However, the industry is experiencing a
gradual shift from prepaid to postpaid as customers are more attracted
to data usage. Recently, handset subsidy campaigns have been more
pronounced in rural markets as operators are trying to change
customers phone from 2G to 3G. Brand new handsets in Thailand cost
as little as USD30 and lower price handsets are also available through
local brands, while the vast second-hand handset recycling market
continues to flourish.
The 4G services will become important to serve growing data users. The
NBTC held the 1800MHz spectrum auction on 11 November 2015
where AIS and TRUE were winners. The 900MHz spectrum auction was
set to be held on 15 December 2015.

MOBILE MARKET SHARE

As of September 2015
Subscription
Market Share

Service Revenue ex IC
Market Share

MOBILE MARKET PENETRATION

As of September 2015
Penetration Rate (%)

22.8%

19.7%

141%

46.6%

51.7%

28.6%

30.7%

135%

119%
122%

AIS

Note: excluding TOT-3G as data is not publicly available

AIS

2012

2013

2014

Note: excluding TOT-3G as data is not publicly available

BRANDS UNDER AIS MOBILE AND FIXED BROADBAND SERVICES

AIS 3G-2100MHz
Postpaid service

AIS 3G-2100MHz
Prepaid service

mPAY
Mobile payment

You! Mobile
New prepaid service

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AIS Fibre
Household internet service

3Q15

ADVANCED INFO SERVICE PLC

September 2015

GOOD CORPORATE GOVERNANCE

CORPORATE SOCIAL RESPONSIBILITIES (CSR)

AIS continually reviews its policy and development plan for Good Governance.
Activities and projects to further enhance Good Governance were organized as
follows:
Protect of shareholders rights and encouragement to shareholders
to exercise their rights under standard legal practice;
Provide equal, important and up to date information via its website;
Give opportunity to retail shareholders to propose agenda and
candidate to be elected as director prior to the meeting date;
Provide various channels for stakeholders to raise their concern of
business ethics to the Board of Directors;
Raise employees awareness in doing business with moral.
Take further step to anti any corruption in the Company by joining
Thailand's Private Sector Collective Action Coalition Against
Corruption (CAC)

AIS recognizes its responsibility to all stakeholders namely shareholders,

employees, partners, customers and creditors as well as to society,
communities and the environment.
Responsibility for environment
AIS continues to create an eco-friendly and innovative green products and
services that combines greater environmental awareness and customer
service efficiency as follows:
An on-going solar cell and wind turbine installation project to supply
electricity to network equipment.
An on-going save project to raise awareness of employees to use
efficient electricity
The first year of greenhouse gas emission assessment for assessing
and analysing approaches to mitigate an impact from our operation.
Responsibility for consumers
AIS has always placed special emphasis on offering a nationwide, high quality
network to ensure an efficient and convenient telecommunication service for
its customers. Services and innovations are continually introduced to enhance
our customers daily lives, adhering to the following principles:
Fair practice for consumers
Customers Health and Safety Protection
Service Support and Prevention of Consumer Complaints and
Disputes
Customer Information and Privacy

Ownership Transparency & Rights

The largest percentage of AIS shares held by a single shareholder is
40.45%.
One share carries one vote.
Financial Transparency
AIS accounting is performed according to the Thai Accounting
Standard (TAS), which is based on the International Financial
Reporting Standard (IFRS).
AIS reports its quarterly financial statement to SET and the public
within 45 days at the end of each quarter, and its annual financial
statement within 60 days.

Responsibility for employees

AIS has placed special emphasis on taking care of its employees as if they are
part of an extended family. Employees work in a warm and friendly workplace
atmosphere. They are encouraged to share views and experience and senior
employees will assist juniors by giving advice and support, thus encouraging a
happy and friendly workplace.

Board Structure
The Audit Committee, Leadership Development and Compensation
Committee and Nomination Committee all work independently.
The Directors remuneration, stock options, and professional
background are well disclosed to the public.

Social contribution and community development

AIS is also dedicated to building a strong society and bringing happiness to the
people in different communities through a number of activities as follows:
Promote awareness of the importance of family love and support by
Sarn Rak project;
Engage with surrounding communities to understand their needs
and support their activities;
An on-going public phone and internet installation for schools and
rural communities.

Shareholders Rights
The Company arranges effective and transparent shareholders
meetings annually. Shareholders will be granted notice of meeting at
least 21 days prior to it taking place via mail, and at least 30 days via
website.

AWARDS

For more information, please see AIS sustainability report 2014

2014
Superbrands 2014 from Superbrands for being quality brand
which has been accepted and trusted among Thai consumer. AIS
is the only telecom company in Thailand to receive this awards of
honor
Thailands Top Corporate Brand Value 2014 for telecom sector
from Faculty of Commerce and Accountancy of Chulalongkorn
University
The Most Powerful Brands of Thailand 2014 for mobile network
industry from Faculty of Commerce and Accountancy of
Chulalongkorn University
Telecom Service Provider of the Year and Mobile Service
Provider of the Year in 2014 from Frost and Sullivan, the global
leader in market research analysts and economic and investment
consultant
Best Investor Relations Awards from SET Awards 2014 and SET
Awards of Honor for the excellent performance in Investor
Relations for 3 consecutive years
Thailands ICT Excellence Awards for high reliability in IT &
telecom application development projects for its Supernova and
Equinox Intelligent Platform from the Thailand Management
Association (TMA)
Remark: Please refer to 2014 Annual Report for other awards

BOARD OF DIRECTORS
As of 4th November 2015
1. Mr. Vithit Leenutaphong
2. Mr. Somprasong Boonyachai
3. Mr. Krairit Euchukanonchai

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Chairman of the Board of Directors

Vice-Chairman of the Board of Directors
Independent Director and Chairman of the
Audit Committee

4. Mrs. Tasanee Manorot

Independent Director and Audit Committee

5. Mr. Surasak Vajasit

Independent Director and Audit Committee

6. Mr. Kan Trakulhoon

Independent Director

7. Mr. Allen Lew Yoong Keong

Director

8. Mr. Somchai Lertsutiwong

Director

9. Mrs. Stephen Geoffrey Miller

Director

10. Ms. Jeann Low Ngiap Jong

Director

ADVANCED INFO SERVICE PLC

September 2015

FUTURE PLAN
the auction of the 900MHz was set on 15 December 2015. It is our aim to
deploy the spectrum for 4G-LTE and to strengthen our 3G network. We believe
that the 4G enabled smart devices will be more available soon and the heavy
contents on live streaming and Cloud environment will become indispensable.
By then, AIS will be enthusiastic to serve all those needs.

AIS is stepping into a new challenge as we are transforming from a pure mobile
service operator to a digital life service provider. Our current mobile business
and the fixed broadband business, which was commercially launched in April15, will provide favorable circumstances for AIS to integrate all digital services
for our always-connected customers. To seamlessly serve this new behavior of
customers, we will rely on our foundation great quality that has always
been differentiating us from our peers.

Moreover, AIS is expanding our horizon towards the fixed broadband business.
The plentiful and high quality fiber optics from the 3G installation will provide
AIS with high leverage to get into the market where the fixed broadband
penetration in Thailand is still low and narrow at 24% of the entire households.
We see this opportunity in not only realizing income from a new source of
business but also in protecting and leveraging our mobile business.

Currently, our 3G-2.1GHz has already achieved 97% of population coverage

since 1H14. We keep on improving network capacity by adopting new
technologies to ensure customers best experience and to serve the growing
traffic from high demand of data consumption. The high quality 3G network
will be our core strength to lie as our fundamental, and the penetration of
smart devices will become an indicator of revenue growth. As the 3G handset
penetration of our customer base is still low, we rank the migration of 3G
handset among our first priorities to achieve. Attractive marketing campaigns
are playing a key role to support the migration at present. Finally, the cost
efficiency will be fully utilized from the terms and conditions of the 2.1GHz
license, and a satisfying bottom line is to follow.

To fully become a digital life service provider, AIS focuses on creating

ecosystem environment by making partners. Our partners will benefit from
our large base of subscribers, and AIS will have their expertise in making great
contents, applications, solutions and services such as the current Live TV
broadcasting the English Premier League on mobile and the AIS On Air. This
kind of cooperation is many more to come. With all of these intentions, AIS is
ready to create another S-curve to maximize stakeholder's wealth and to keep
on ensuring customers' best experience.

Another stepping stone AIS will surely take is to provide 4G-LTE service to our
customers. In the past November, the auction of the 1800MHz was held where

LATEST FINANCIAL FIGURES

(unit THB million)
Total Revenue
(ex. construction)
Net Income
EBITDA
EBITDA Margin

MANAGEMENT COMPENSATION

3Q14

4Q14

1Q15

2Q15

3Q15

35,355

40,444

40,536

38,123

36,768

8,955

9,122

9,897

9,849

8,616

16,442

17,727

18,073

18,068

17,431

46.5%

43.8%

44.6%

47.4%

47.4

121,250

126,351

138,795

130,735

130,767

Total Liabilities

83,505

79,486

99,743

81,832

92,572

Total Equity

37,745

46,865

39,052

48,903

38,194

Net Debt to Equity

0.69

0.39

0.24

0.32

0.91

ROCE

44%

49%

50%

51%

43%

EPS

3.01

3.07

3.33

3.31

2.90

Total assets

In the past, AIS established an Employee Stock Option Plan (ESOP) as a way of
retaining, motivating and rewarding the Companys directors and employees in
the Companys best interest. The last allotment of ESOP Grant III with 5 years
of project term was approved by the shareholders in the Annual General
Meeting held in March 2015.

CONTACT US
Investor Relations
Advanced Info Service Plc

414 AIS Tower 1 , 22th Floor

Phaholyothin Road, Phayathai
Bangkok 10400 Thailand

E-mail: investor@ais.co.th
Corporate website: http://www.ais.co.th
IR website: http://investor.ais.co.th

Tel: +66 2029 5014

Fax: +66 2029 5165

TERMS AND DEFINITIONS

EBITDA

Earnings before interest, tax, depreciation and amortisation = Profit before interest and tax + Depreciation + Amortisation - Other income +
Bad debt refund + Other non-cash items +/- Other non-operating items

EBITDA Margin

EBITDA as % of total revenue

Free Cash Flow

EBITDA-CAPEX

Operating Cash Flow

Refers to note to audited year-end financial statements

Net Debt to Equity

(Interest - Bearing debts - Cash) / Total equity

ROCE

(Operating Profit after tax) / (average interest bearing debt + average equity)

EPS

Earnings per share

DPS

Dividend per share (as paid out for the operation of that fiscal year)

DISCLAIMER

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 managements 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.

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