Advanced Info Service Public Co., Ltd. · SET:ADVANC
Advanced Info Service Public — Q2 2024 Earnings Presentation
37 slides from Advanced Info Service Public's earnings presentation, Aug 8, 2024
Slide 1: Foundation of Growth
Please scan for presentation material FOUNDATION OF GROWTH 8 Aug 2024 DISCLAIMER: Please be informed that this meeting is being recorded. By participating in this meeting, you have allowed AIS to collect, use, or disclose any personal data shared during this meeting by any means. Please do not copy,
Slide 2: Agenda
Agenda • SUSTAINING THE GROWTH • THE NEXT CURVE OF CUSTOMER CENTRICITY • UNLEASHING BROADBAND POTENTIALS • STREAMLINING ENTERPRISE • CAPITAL MANAGEMENT FOR VALUE CREATION 2
Slide 3: Transition Year: Sustaining the Growth
Transition Year Sustaining the Growth 8 Aug CEO-AIS 2024 3
Slide 4: 1H24 growing stronger than expectations
RESULTS BEAT CENTERED ON OPERATIONAL SUCCESSES CORE OPERATIONAL SUCCESSES 5G: reached Delivered base Value based Handset & Cost 95% of stations to NT segmented Subsidy efficiency and population >60% offerings Optimization 3BB synergies 1H24 growing stronger than expectations 4
Slide 5: Strengthened Foundation for Growth
STRENGTHENED FOUNDATION FOR GROWTH Upsell Investing for Sustaining Strong core service innovative Streamlining network service offerings products enterprise leadership quality + ARPU AI enhanced Partnerships Enhanced 3BB Capital digital & Points foundation integration management capability ecosystem
Slide 6: Unchanged Dedication Towards a Greener and Inclusive Digital World
UNCHANGED DEDICATION TOWARDS A GREENER AND INCLUSIVE DIGITAL WORLD Corporate Governance Key Updates Drive Digital Economy Enable people and businesses to grow On-going solar panel installation in the digital economy 8.8k base station done in FY23, additional 4.5k planned in FY24 Promote Digital Incl
Slide 7: Transition Year: The Next Curve of Customer Centricity
Transition Year The next curve of customer centricity 8 CCBOAug 2024 7
Slide 8: Customers Focused Growth
CUSTOMERS FOCUSED GROWTH FURTHER CONSTRUCTIVE FURTHER REVIVAL WITH ARPU REPAIR ECONOMY AND TOURISTS Quality Network & Services AI ENHANCED PARTNERSHIPS & POINTS DIGITAL CAPABILITY ECOSYSTEM 8
Slide 9: 9
9
Slide 10: 5G Coverage
als Ohy 4) e COVERAGE POPULATED AREAS
Slide 11: 5G Coverage and Network Ranking
a “=> Coverage AlS 5G | Tf (@)) Availability NO.1 Network] (ee In7 awards by | @ OPENSIGNAL™™ Games Mobile Network Experience Report | May 2024 | @Opensigrial Limite Mig (#)} * & Voice https: //wwnn.opensignal.com/reports/2024/05/thailand/mobile-network-experiénce rn § my
Slide 12: Extension to Core Business Growth
EXTENSION TO CORE BUSINESS GROWTH KEY OPERATIONTIONAL SUCCESSES THE NEXT MOVES Daily Top Sales Tourist Top Up Prepaid Related Capture rising AI enhanced Customer Amount Package Revenue demand for data digital value & points Increased for 3 200 THB Increased 18% consumption capability ecosystem Conse
Slide 13: Importance of AI in Telco
IMPORTANCE OF AI IN TELCO Optimizing Supporting Reducing Enhancing Improving Reducing network planning predictive energy usage network security customer fraud and operations maintenance and emissions service GSMA Paper: The Mobile Industry and AI, 2023 13
Slide 14: <
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Slide 15: Classification: Internal
Classification: Internal 15
Slide 16: AI-Enhanced Capabilities at AIS
AI-ENHANCED CAPABILITIES AT AIS OPERATIONAL CUSTOMER CARE AI as a Solution EFFICIENCY Co-Pilot Network Efficiency AI Chatbot & Voice Bot at Contact Center Platform to support AI Ecosystem AI Governance Framework Multi Cloud, Open Source, Multi Vendor Alignment with Business Strategy 16
Slide 17: Enhance Network Energy Efficiency with AI
ENHANCE NETWORK ENERGY EFFICIENCY WITH AI AI on NETWORK ENERGY COST EFFICIENCY Daily network traffic Energy AI creates Energy Network Electricity Saving Consumption in Site Traffic Consumption line with Actual without AI Traffic 24.9 Million kWh Already saved 60% of FY23 FY23 1H24 Off Peak Off Peak
Slide 18: Empowering AI in Contact Center
EMPOWERING AI IN CONTACT CENTER Planned total of 18 AI including 13 Voice Bot for customers, 2 Chatbot for customers and 3 Chatbot for internal support FY18-19 FY20-21 FY22-23 FY24 Onwards Support Chatbot Skill Chatbot Virtual Assistant Virtual Agent & Voice AI Inbound Outbound Payment Reminder Roam
Slide 19: AI Improving Performance
AI IMPROVING PERFORMANCE Empowering Improving Revenue Beat Agent in Capabilities to Scale and Productivity Payment Reminder 15 million or 76Mn 71% Collected 26% of transactions +38% YoY vs. 69% of real agent handled by AI Revenue generated for Payment Reminder from AI 1.3X Call/Hour 95% solved -20%
Slide 20: Customer Values & Points Ecosystem
CUSTOMER VALUES & POINTS ECOSYSTEM POINTS CUSTOMER RELATIONSHIP MORE THAN LOYALTY PARTNERSHIPS PROGRAM FOR BETTER PROGRAM FOR ALL & ECOSYSTEM PERFORMANCE CUSTOMERS INCREASE PARTNERSHIPS & POINT & PRIVILEGE ECOSYSTEM AIS Point Serenade Users Churn -0.76% Churn -0.53% SCALABLE SERENADE ARPU: +50% ARPU
Slide 21: Transition Year: Unleashing Broadband Potentials
Transition Year Unleashing Broadband Potentials 8 Aug 2024 CEO - Broadband 21
Slide 22: Unleashing with Combined Capabilities
UNLEASHING WITH COMBINED CAPABILITIES STRATEGIC ACTION FOR GROWTH MOMENTUM UNLOCKING OPERATIONAL EFFICIENCY AND SYNERGY WITH INTEGRATION 22
Slide 23: Strategic Action for Growth Momentum
STRATEGIC ACTION FOR GROWTH MOMENTUM KEY OPERATIONAL SUCCESSES THE NEXT MOVES New Subs Churn rate Continued Enhanced Synergy ARPU Reduction growth with ARPU with Realization & expanded upsell on top Integration > 80% of new From 1.4% to 1.0% subs come with coverages (FY23 > 1H24) over 500THB BEYOND
Slide 24: Broadband Strategy
BROADBAND STRATEGY I ARPU Alignment & Beyond Broadband Cross-Sell and Upsell Cost efficiency Innovative products and New services maximize ARPU potential to generate ARPU Uplift Integration transition 24
Slide 25: Combined for Growth
COMBINED FOR GROWTH SYNERGY REALIZATION SYNERGY TRACKING Revenue Synergies 71% beyond 1H24 target 1H24 Target OPEX Synergies 56% beyond 1H24 target VALUE RESOURCE OPTIMIZED 1H24 Target UPLIFTING UTILIZATION CAPEX Upselling Content, Network Network CAPEX Synergies high-value product transmission, avo
Slide 26: Integration Plan
INTEGRATION PLAN Achievement As of 1H24 Target FY24 1H25 ✓ Identified and renationalized ⟩ Align billing system → One Platform with standardized gap analysis ⟩ Develop AIS system for 3BB operation efficiency IT system migration NETWORK ✓ Aligned Core network ⟩ Increase network capacity → One network
Slide 27: Transition Year: Streamlining Enterprise
Transition Year Streamlining Enterprise 8 Aug 2024 Acting CEBO 27
Slide 28: Streamlining Enterprise Foundation
STREAMLINING ENTERPRISE FOUNDATION 5G Ecosystem Co-creating digital evolution by NEXTGen network, platform, and partnership Intelligent Network and Cloud Connecting and computing on complete infrastructures for variety of businesses AI and Data Analytics Generating insights and opportunities by valu
Slide 29: Realignment Towards Profitability
REALIGNMENT TOWARDS PROFITABILITY Intelligent Network AI and Data Digital Platform Industry 5G Ecosystem & Cloud Analytics & APIs Transformation The Most Multi-location in Thailand 29
Slide 30: Industry Transformation – Partnering for Growth
INDUSTRY TRANSFORMATION – PARTNERING FOR GROWTH 5G Ecosystem Thailand 1st Commercial Dedicated for Business Transformation 5G Private Network Devices | Connectivity | Platforms | Ecosystem 5G Smart Green Mining 5G Smart Factory 5G Energy Management 5G Remote Forklift 5G MEC Interactive Live 5G Auton
Slide 31: AIS and Oracle Hyperscale Cloud for Thailand
~~ AIS | ORACLE Thailand's First Locally Owned and Operated Hyperscale Cloud for THAls A Significant Collaboration to Elevate Thailand's Cloud and Al Landscape Thailand's First Locally Owned & Operated Hyperscale Cloud Dual regions to provide resilience and disaster recovery within Thailand Data Res
Slide 32: Transition Year: Capital Management for Value Creation
Transition Year Capital Management for Value Creation 8 CFO Aug 2024 32
Slide 33: Stakeholder Value Creation as Core Principle
STAKEHOLDER VALUE CREATION AS CORE PRINCIPLE ENHANCING OPERATIONS & COST EFFICIENCY CAPITAL MANAGEMENT & CAPITAL ALLOCATION 33
Slide 34: Streamlining Operations & Cost Efficiency
STEAMLINING OPERATIONS & COST EFFICIENCY Sales Margin improved to 5.3% in 1H24 Sales Margin Optimization from 1.8% in FY23 Cost avoidance of 3% in 1H24 from consumption reduction with AI solution, Network Optimization TOU meter, and 4.5k additional Solar Cell Network OPEX cost avoidance of 2% from p
Slide 35: Efficient Capital Allocation for Value Creation
EFFICIENT CAPITAL ALLOCATION FOR VALUE CREATION 1 CAPITAL REINVESTMENT 2 CAPITAL STRUCTURE 3 CAPITAL RETURN CAPEX AND SPECTRUM INVESTMENT TO SUSTAIN LEVERAGE BELOW 2.5X GROWTH IN DPS FROM NETWORK LEADERSHIP (Debt / EBITDA , inclusive of lease EPS GROWTH liability & spectrum) 24 YEARS CONSECUTIVE DIV
Slide 36: Growing Shareholder Return
GROWING SHAREHOLDER RETURN Recorded incremental dividend payout ratio and amount with growing performance 85% 88% 88% 85% 75% Dividend payout ratio (%) 8.61 7.69 7.69 Total Annual Dividend 6.92 4.61 Second half 4.24 4.24 Dividend 3.68 First half Dividend 4.00 4.87 3.24 3.45 3.45 FY20 FY21 FY22 FY23
Slide 37: IR Contact Details
IR website: https://investor.ais.co.th Email: investor@ais.co.th Tel: +662 029 5000 Sustainability website: https://sustainability.ais.co.th Email: AISSustainability@ais.co.th Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to var
Advanced Info Service Public — Q2 2024 Earnings Presentation on 6ix