Advanced Info Service Public Co., Ltd. · SET:ADVANC

Advanced Info Service Public — Advanced Info Service — Q1 2010 Earnings Presentation

14 slides from Advanced Info Service Public's earnings presentation, May 7, 2010

  1. Slide 1: 1st Quarter 2010: Financial Result

    1st Quarter 2010: Financial Result Advanced Info Service Plc 7 Mayy 2010

  2. Slide 2: 1Q10 Financial Highlights

    1Q10 Financial Highlights Financial 1Q10 % yoy % qoq g g Highlights (Bt million) Service ƒ Ongoing momentum in economic 21,751 5.9% 3.1% recovery and higher data usage revenue excl. IC d li delivered d service i revenue growth. th Data revenue 3,588 37% 9.7% ƒ Data revenue post solid growth driven b

  3. Slide 3: Increasing trend of service revenue

    Increasing trend of service revenue ƒ Service revenue ex. IC has been on a Service revenue ex. IC Bt million increasing trend in line with economic Service revenue ex.IC ex IC %yoy recovery on domestic revenue reflected in 25,000 4.3% 5.9% voice revenue both prepaid and postpaid ‐4.1% ‐5.4% ‐3.9% 22

  4. Slide 4: Data revenue surged 37% yoy

    Data revenue surged 37% yoy Non‐voice revenue Bt million ƒ Non‐voice revenue increased by 37% non‐voice revenue %to service revenue ex.IC yoy mainly driven by surging mobile d t usage with data ith 5.7mn 57 subscribers b ib in i 5,000 16.5% 14.8% 15.5% 1Q10 from 5.3mn as the end of 2009. 4,000 12.8%

  5. Slide 5: Key growth for data revenue

    Keyy growth g for data revenue ƒ Net SIM reached 400k from 265k in 2009 as AIS tapped into IT channels. ƒ BlackBerry subscribers reached 140k in 1Q10 from 100k in 2009 supported by growing popularity of mobile data connectivity and social networking. ƒ g on TV on Mobile increased byy Minute browsing

  6. Slide 6: Operational stats

    Operational stats Net adds (‘000) ƒ Built‐up net add of 736k in 1Q10 from 491k in 4Q09 as a result of postpaid prepaid 661 694 growing popularity of the “2425” on net promotion and Net SIM. 403 411 230 233 296 ƒ On yyearlyy basis,, ARPU trend started 149 123 to stabilized since 4Q09 from 51 87 84 80

  7. Slide 7: Declined cash opex supported by low marketing spending

    Declined cash opex supported by low marketing spending Cash opex = NW opex + SG&A Bt million ƒ In 1Q10, cash opex was Bt4bn Cash opex % to service revenue dropped 8.3% 8 3% yoy and 19% qoq, qoq as a result of lower expense on both 6,000 18.0% 18.3% 17.5% 20.0% 15.9% SG&A and network opex. 4,000 ƒ Th

  8. Slide 8: EBITDA continued to increased

    EBITDA continued to increased EBITDA (%yoy) Bt million 11.2% yoy ƒ Higher EBITDA yoy 75 205 (215) 40 supported by service 1,205 12,961 revenue ex.IC which 11,652 grew by 5.9%yoy. 5 9%yoy 1Q09 service cost of SG&A net IC others 1Q10 revenue ex.IC service ex.IC EBITDA (%qoq) Bt million 12 5% qoq 12.5%

  9. Slide 9: Improved EBITDA margin and strong cash flow position

    Improved EBITDA margin and strong cash flow position EBITDA Margin (Bt million) EBITDA Margin ƒ EBITDA margini improved i d to t 15,000 48.1% from 44.3% in 1Q09 and 44.3% 44.8% 45.8% 44.3% 48.1% 12,500 4Q09 supported by seasonally 10,000 +11.2% +11 2% yoy low marketing spending spending. +12.5% qoq

  10. Slide 10: Recurring net profit rose 17.4% yoy

    Recurring net profit rose 17.4% yoy Net profit (Bt million) ƒ In 1Q10, the AIS group has recorded Net profit f Margin the impairment loss of goodwill DPC 17.4% 18.4% amounted Bt390mn. The remaining 6,000 16.7% 16.8% 15.8% DPC goodwill of Bt2,712mn is 4 000 4,000 +8.9% +8 9% yoy expected to be impair

  11. Slide 11: High cash on hand is meant to be allocated for dividend payment

    High cash on hand is meant to be allocated for dividend payment Financial ratios ƒ In 1Q10, AIS turned into net cash Net debt to equity Net debt to EBITDA position as a result of a plenty of cash on hand amounted Bt35.7bn which 0.31 allocated for dividend payment in April. 0.26 0.23 0.19 0 16 0.16 0

  12. Slide 12: 2010 outlook

    2010 outlook Service revenue excl excl. IC 3% % yyoyy Data revenue 20% yoy EBITDA margin 44% FCF (EBITDA (EBITDA‐CAPEX) CAPEX) 12% yoy CAPEX Bt6.2bn cash Capex (including 3G on 900MHz) Advanced Info Service ‐ Investor Relations 12

  13. Slide 13: Regulatory Updates

    Regulatory Updates ƒ 3G license on 2100MHz Full team of NTC was officially formed. Timeline of 3G 2100MHz has not yet been announced. We expect NTC to review the previous IM and possibly push for another public hearing. ƒ Frequency Allocation Act (FAA) The senate has passed the first reading of the

  14. Slide 14: Disclaimers

    Disclaimers “Some statements made in this presentation are forward‐looking statements which are subject to various risks and uncertainties statements, uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical fact

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