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AD DVANCED INFO SER D RVICE PLC C

TOR HEET INVEST FACT SH November 2011 N

CO OMPANY O OVERVIEW W
Adv vanced Info Ser rvice Plc (AIS) or ADVANC w established in was 198 and is today th largest mobile operator in Thaila with more tha 89, he and an 32 m million subscriber and 97% natio rs onwide coverage. The company an nd its subsidiaries ope erate varied telec communication r related businesses udes Mobile GSM network operato international di M or, irect dialing servic ce, inclu data communications service, call cen services, sale and distribution of a s nter es han ndsets, SIM card a refill cards and payment servic and ce. 900 MHz GSM Ne 0 etwork: AIS ope erates its cellular mobile telephon r ne netw work under a 25-year BTO (build-transfer-operate) contract with TO ) OT Cor rporation Plc (TOT which will end in 2015. In terms of the agreement, T) s AIS is required to bu and raise capital for investment in cellular netwo uild ork d work o are and transfer the netw ownership to TOT. Also, AIS is entitled to sha its service revenue (30% of postpaid revenue and 20% of prepa d aid enue) to TOT. reve 180 MHz GSM Ne 00 etwork: is operat through AIS subsidiaries, Digi ted ital Pho Co., Ltd (DPC DPC operates under a 16-year BTO contract w one C). s r with CAT Telecom Public Company Limited (CAT) which will end in 201 T h 13. DPC also is require to pay current 30% of its rev C ed tly venue from mob bile pho operation to CAT. DPC also has a network r one roaming agreeme ent with AIS. h AIS is managed by a qualified and co ompetent profess sional manageme ent m, over 10 years of experience with the company an f h nd team with majority o stro ong background in telecommunication industry. The Company is disc ciplined in its inv vestment approac reflected by its strong financ ch, cial earn nings, balance s sheet, and solid cash flow from operations. Th d m his ena ables AIS to conti inue investing in its network and internal systems to maintain its position a the largest net as twork coverage o operator in Thailan nd h k with superior network quality. It is the Companys long-term commitment to enhanc its value throug ce gh dent managemen decisions, with a focus on gen nt h nerating sustainab ble prud grow in revenue and profitability wh maximising financial return to its wth hile sha areholders In 2 2011, the Comp pany focused on QDNAs (Quality Device, Netwo y ork App plication and serv vice) as a core st trategy. Quality w be focused in all will dimensions of servic to maintain our leadership and s ce r sustainable growt wth. owed the EcoSys stem strategy in 2 2010, the compan promises to brin ny ng Follo full range of best-in-c class quality devices to our custo omers, provides th he h rks, lity largest and widest coverage of high quality network delivers qual plications that amu entertain, rais productivity at work or at play an use, se nd app finally ensures delig ghtful customers experiences thro ough every touc chnts. poin In 3 3Q11, AIS launch 3G-900MHz services in Ban hed z ngkok and 9 maj jor citie to support stron mobile data de es ng emand. AIS move ahead to serve f e for all p possibilities of cus stomer lifestyles, b rebranding with Your World Yo by h our Way concept and ad new corpora logo. y dopt ate .

KE INVEST EY TMENT FE EATURES S


100% dividend payout policy d y Solid operatin cash flow ng Growth oppor rtunity from wir reless broadba and A- rating fro S&P and A om AA rating from TRIS m

MA ARKET DA ATA
Underlying Share ADVANC es:
Sto Symbol ock Exc change Rec cent Price 52-w week Range Mar rket Capitalisatio on Num mber of Shares O Outstanding Free Float mber of Shareow wners Num ADVANC Stock Exchange of Thailand (SET e T) THB 142.50 (No ovember 15, 2011) THB 77.00 14 42.50 THB 423 billion / USD 13.6 billion n (@ THB 31/USD D) 2,973m (Novem mber 15, 2011) 36% 19,677 (August 24, 2011)

Dep positary Receipts: AVIFY


ADR Ticker Symbol R Exc change Dep positary ADR to ORD Share Ratio R ADR CUSIP Number R Rec cent Price 52-w week Range AVIFY OTC BNYM (Sponso ored) 1:1 00753G103 USD 4.38 (Nov vember 14,2011) USD 2.55 4.4 42

PR RICE PER RFORMANC CE

FIN NANCIAL HIGHLIGH HTS


(unit: THB million)
Tota Revenue al Net Income EBIT TDA EBIT TDA Margin Operating Cash Flow Tota Assets al Tota Borrowings al Tota Equity al Net Debt to Equity (x) ROC CE EPS (THB/Share) S DPS (THB/Share) S

2008
110,792 16,409 46,406 42% 36,721 182,081 34,328 72,436 0.25 18% 5.54 6.30

2009 2
10 02,451 17,055 1 45,913 4 45% 40,913 4 12 25,026 35,654 3 71,811 7 0.15 17% 5.76 11.30**

2010
111,279 20,547 52,063 46% 45,224 97,457 35,139 41,479 0.54 25% 6.93 12.92***

9M11*
93,272 18,557 42,292 45% 38,599 94,872 30,957 35,964 0.24 32% 6.24 4.17

%Y YoY
8.4% 26% 11%

MA AJOR SHA AREHOLD DERS


As of 19 August 2011 o 1 1. SHIN CORPORAT S TION PLC 2. SINGTEL STRATE S EGIC INVESTMENTS PTE LTD AND THAI TRUST FUND A T 3. THAI NVDR T 4. HSBC (SINGAPORE) NOMINEES P H PTE LTD 5. BNY MELLON NO B OMINEES LIMITED 6. STATE STREET B S BANK AND TRUS COMPANY ST 7. LITTLEDOWN NO L OMINEES LIMITED 8. STATE STREET B S BANK EUROPE L LIMITED 9. SOCIAL SECURIT OFFICE (2 CA S TY ASE) 10. THE BANK OF N NEW YORK (NOM MINEES) LIMITED D 42.50% % 21.27% % 3.81% % 2.82% % 2.28% % 1.93% % 1.58% % 1.22% % 0.90% % 0.83% %

8.8% -14% -12% -32%

26%

(*) IFR applied 2011 onwar RS rd. (**) R Regular dividend 6.30 TH HB/Share, Special divid dend 5.00 THB/Share. (***) Regular dividend 6.92 T THB/share, Special dividend 6.00 THB/Share.

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AD DVANCED INFO SER D RVICE PLC C


INVEST FACT SH TOR HEET November 2011 N

OP PERATION NAL HIGH HLIGHTS


as o of Subs scribers (million) Pr repaid Po ostpaid Net A Additions Churn Rate/month Pr repaid Po ostpaid ARP ex IC (bt/m) PU Pr repaid Po ostpaid

TH HAILANDS MOBILE MARKET E T


2010* 31.2 28.1 3.0 2.4 4.4% 1.8% 195 658 3Q11* * 32.7 7 29.5 5 3.2 2 0.2 2 5.0% % 1.6% % 193 3 667 7

2008 8 27.3 3 24.7 7 2.6 6 3.2 2 5.2% % 2.0% % 193 3 695 5

2009 28.8 25.9 2.9 1.5 5.2% 2.2% 192 659

ailand has a pop pulation of 67.7 million with a GDP per capita of 7 G Tha USD 550 as of t the end of 3Q Q11. It is estim mated that mobile ecoms spending is approxima g ately 4% of GD As of end of DP. tele 3Q11, the total number of mo obile subscribers reached 73 3.7 lion, representi ing a penetrat tion rate of 10 09% of the total mill pop pulation. While a estimated nu an umber of multiple SIMs is 35%, a pen netration rate co ounted by users would be 70%. s In next 3-5 years the overall p s, penetration rate is estimated to e ach re ers rea over 120%, given that ther are higher second SIM use due to internet S e SIM. At presen with the strongest netwo nt, ork cov verage, AIS is th major mobile operator in rur area with mo he e ral ore than 60% of subsc cribers market s shares. In line with globa trend, a grow al wing data service is a new key venue driver fro supporting f om factors such as more affordab s ble rev and functional sma d artphones, soci ial-networking, variety of conte v ent and application, as well as mobile internet, given lack of fixed-lin d s e n ne bro oadband infrastr ructure in Thaila and.

* IFR is applies in 2011onward. Restatem RS ment was restated due to IFRS

EVENUE B BREAKDO OWN RE


% of Service Revenue e IC f ex Prep paid Post tpaid IR Othe ers

2008 8
66.8% % 24.6% % 3.8% % 4.8% % 100% %

2009
66.6% 26.1% 2.9% 4.4% 100%

2010
66.2% 26.3% 3.1% 4.4% 100%

9M11 1
67.6% % 25.4% % 2.7% % 4.4% % 100% %

The are four mo ere obile operators (AIS, DTAC, True Move, TO T OT3G). The top three major players (all GSM) command 98% of th e he al aim to have more than 90 0% tota market share and all cla pop pulation coverage nationwide. Operators provide 3G services on existing freque ency to maintai growth mom in mentum of mobile ernet. inte e mobile subscribe in Thailand are prepaid an ers nd The majority of m acc count for 90% of the total ma arket. Postpaid unlike in many d, other countries, is not on a cont s tractual basis, as there are ve a ery ited handset s subsidy program within the market, and a ms are limi mostly only offered to corporate s d segment. Brand new handsets in d Tha ailand cost as little as USD 30 and lower pr rice handsets a are also available thr o rough local bra and and the vast second-han v nd market as the han ndset replaceme cycle is continually becomin ent ng orter. sho

Tota Non-voice Revenu al ue SMS & Ring back t tone Non-messaging

11.2% % 5.8% % 5.4% %

14.2% 6.0% 8.2%

17.1% 5.9% 11.3%

19.8% % 5.7% % 14.1% %

MO OBILE MA ARKET SH HARE


As of end of 9M11 1 Subscription are Market Sha Service Reven ex IC nue Market Share

MO OBILE MA ARKET GR ROWTH


As of end of 3Q11 1
25% 44% 31% 15% 31% 54% 120% 100% 80% 60% 40%
AIS DTAC TrueMove T AIS DTAC TrueMove T

Penet trationRate(%) 91% 96% 103% 1 % 109%

79%

20% 0%

Note excluding TOT-3G as data is not public available e: cly

2007

2008

2009

2010

3Q11 1

Note excluding TOT-3G as data is not public available e: G cly

BR RANDS UN NDER AIS MOBILE SERVICES S

e GSM Advance Postpaid service P e

One-2-Call! d Prepaid service

e Sawasdee Low-usage pre epaid

MobileLIFE M Data service D

olutions Smart So Corporate c customer

mPay Mobile payment M

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ADVANCED INFO SERVICE PLC


INVESTOR FACT SHEET November 2011

GOOD CORPORATE GOVERNANCE


Since 2002, AIS has established a strict policy on corporate governance in accordance with the regulations of the Stock Exchange of Thailand (SET) and by adhering to principles of the equitable treatment of shareholders, the disclosure of information, risk management, internal control and business ethics. The following are key examples of AIS corporate governance policy. Ownership Transparency & Rights The largest percentage of AIS shares held by a single shareholder is 42.5%. One share carries one vote. Financial Transparency AIS accounting is performed 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. Board Structure The Audit Committee, Remuneration Committee and Nominating Committee all work independently. The Directors remuneration, stock options, and professional background are well disclosed to the public. Company directors are required to stand for re-election every three years. Shareholders Rights The Company arranges effective and transparent shareholders meeting annually. Shareholders are informed of a scheduled meeting at least 14 days prior to it taking place. At every meeting, at least one independent director must be appointed as proxy.

CORPORATE SOCIAL RESPONSIBILITIES (CSR)


AIS recognizes its responsibility of all stakeholders namely shareholders, employees, partners, customers and creditors as well as the society, community and environment. Good governance AIS reviewed its policy and development plan for Good Governance. Activities and projects to further enhance Good Governance were organized such as: Protection of shareholders rights and encourage shareholders to exercise their rights under the standard legal practice. Provide important and up to date information via website. Give opportunity to small shareholders to raise their issues to include in shareholders agenda prior to the meeting. Responsibility for environment AIS is responsible for building the network that offers greater convenience and efficiency for customers through green network concept in various forms such as: Installation of solar cell and wind turbine to supply electricity to network equipments. Using biodiesel as fuel for electrical generator at the station. Installation of insulated wall to save energy. Responsibility for consumers AIS has always placed special emphasis on offering high quality network and its coverage in order to ensure effective communications and for customers. Service and innovations are continually introduced to maximize customers daily lives while meeting their needs under the principles such as: Fair practice for consumers Customers Health and Safety Protection Service Support and Prevention of Consumer Complaints and Disputes Customer Information and Privacy Responsibility for employee AIS has placed special emphasis on taking care of its employees like family members. Employees work in a warm and friendly workplace atmosphere. They are encouraged to share views and experience, senior employees will assist the junior giving advice and support which will in turn create a friendly atmosphere and happiness at workplace. Social contribution and community development AIS is also dedicated to building strong society and bring happiness to the people in the community through a number of activities as follows: Sarn Rak project: to promote awareness of the importance of family love and support. Encourage employee volunteers to the social growth and development activities.

AWARDS
2011
Best dividend by Alpha Southeast Asia Magazine Best employers in Thailand 2011 by Aon Hewitt & Sasin Best public companies of the year 2011 by Money and Banking Magazine Best e-Banking project in technology implementation award by the Asian Banker magazine Asia Responsible Entrepreneurship Awards 2011 by Enterprise Asia

2010
Best Public Company of the Year 2010 by Money and banking Magazine 9th ranking for being a Thai company that maintain its image through challenging environment by Wall Street Journal The most reliable mobile phone system in 2010 by BrandAge magazine By Securities Analysts Association (SAA) of Thailand 1) Best CEO 2) Best CFO 3) Best Investor Relations Appreciation in recognition of AISs effort to promote better living quality for blind and underprivileged people by the National Telecommunication Committee Certification for AISs Sarn Rak Kon Geng Huajai Grang project in recognition of AISs outstanding efforts to organize activities for the benefit of the poor by The Ministry of Social Development and Human Security -3-

BOARD OF DIRECTORS
As of 16 November 2011
1. Dr. Paiboon Limpaphayom* 2. Mr. Somprasong Boonyachai 3. Mr. Aviruth Wongbuddhapitak* 4. Mrs. Tasanee Manorot* 5. Mr. Surasak Vajasit* 6. Mr. Vikrom Sriprataks 7. Mr. Yeo Eng Choon 8. Mr. Ng Ching-Wah 9. Mr. Allen Lew Yoong Keong
*Independent Director

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

ADVANCED INFO SERVICE PLC


INVESTOR FACT SHEET November 2011

FUTURE PLAN
As mobile market penetration in Thailand already reaches more than 100%, growth in basic voice service is beginning to slow down while new services from data communication which is in an early state will become increasingly more important. In the next 3-5 years, AIS will tap onto the growing non-voice market particularly in high-speed data communications service for both mobile and personal computers/laptops. Subjected to the regulator of Thailand Telecommunication industry, AIS is planning to acquire 2.1GHz license to operate 3G technology at which will enable higher data speed as well as voice capacity. This will become crucial for AIS growth as moving to 3G will not only stimulate further data revenue growth and capture opportunities in residential broadband, but will also ensure business continuity as the current BTO contract on the existing 900MHz is due to end in 2015. AIS has target to acquire 900MHz as well to strengthen our services especially in rural areas. While waiting for the 2.1GHz license, AIS deploys an interim solution to maintain data growth momentum by launching 3G services on existing 900MHz in selective areas, providing WiFi services in density areas, wireless broadband, and building Eco-System in data business through device, content, enterprise solution, privileges and customer assistance.

LATEST FINANCIAL FIGURES


(unit:THB million)
Total Revenue Net Income EBITDA EBITDA Margin Operating Cash Flow Total assets Total Liabilities Total Equity Net Debt to Equity ROCE EPS

MANAGEMENT COMPENSATION
2Q11*
31,110 6,116 13,975 44.9% 11,859 103,431 61,281 42,150 0.17 36% 2.06

3Q10*
27,659 4,884 12,550 45.4% 10,758 110,023 56,942 53,081 0.27 24% 1.65

4Q10
30,150 5,832 13,811 45.8% 9,469 97,457 55,977 41,479 0.54 30% 1.96

1Q11*
31,148 6,269 14,336 46.0% 14,130 107,985 72,053 35,931 0.15 37% 2.11

3Q11*
31,014 6,172 13,981 45.1% 12,610 94,872 58,907 35,965 0.24 37% 2.08

In the past, AIS established Employee Stock Option Plan (ESOP) as a way of retaining, motivating and rewarding the Companys directors and employees to the Companys best interest. The last allotment will be expired in May 2011. The new compensation plan is based on Economic Value Added (EVA).

* IFRS is applies from 2011 onward. 3Q10 is restated for comparative purpose.

CONTACT US
Investor Relations
Advanced Info Service Plc
414 Shinawatra Tower 1, 27th Floor Phaholyothin Road, Phayathai Bangkok 10400 Thailand Tel: +66 2299 5014 Fax: +66 2299 5165 E-mail: investor@ais.co.th Corporate website: http://www.ais.co.th IR website: http://investor.ais.co.th

TERMS AND DEFINITIONS


EBITDA EBITDA Margin Free Cash Flow Operating Cash Flow Net Debt to Equity ROCE EPS DPS
DISCLAIMER

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 as % of total revenue EBITDA-CAPEX Refers to note to audited year-end financial statements (Interest - Bearing debts - Cash) / Total equity (Operating Profit after tax) / (Interest bearing debt - equity) Earnings per share Dividend per share (as paid out for the operation of that fiscal year)

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 forwardlooking 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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