dtac FY2017 30 January 2018

Investor Relations

E: ir@dtac.co.th T: +662 202 8882

FY17 highlights

2

22.7m total subscribers 97.7% of sub base registered under DTN

72.8% smartphone penetration 50.5% penetration of 4G-enabled devices

THB64.8b service revenues ex. IC

0.2%YoY growth

THB30.4b EBITDA

38.9% EBITDA margin

THB16.5b CAPEX

21.1% to total revenues

THB0.24 per share dividend 26.9% of net profit

operational highlights

FY17 recap

4

massive network

densification

highly-impactful

campaigns and services

digital transformation and

disruption

31 31 31 31 31

30 33 36 38 40

6

14

10

61 64 67 69 71

20

10

Q416 Q117 Q217 Q317 Q417 FY16 FY17

licensed

concession

no. of base stations increase in

base stations

in thousand

• 4.6k new physical towers built

in FY17 (vs 2.6k in FY16)

• 2300MHz partnership with TOT

to increase 4G bandwidth

Smooth network campaign

Go No Limit price plans

dtac Reward customer loyalty program

digitization of

core business personalized upsell in dtac app

(using AI), dtac ONE,

customer care

transition to online

channels targeted online ads,

sale-oriented dtac website

Line Mobile purely digital mobile services

solid postpaid and 4G development

annual postpaid revenues surpassed prepaid

• pre-to-post migration

• increase in postpaid ARPU

• continued improvement in network

strong growth in 4G sub and data usage

• substantial increase in 4G base stations

• more affordable 4G devices/device campaigns

• availability of free and paid content on various

streaming platforms

key focus areas to address challenges on prepaid

• best value position

• simplification of product portfolio

• loyalty program through dtac reward

5

Q416 Q117 Q217 Q317 Q417 FY16 FY17

postpaid

prepaid

service revenues ex. IC

FY16 FY17

+10.5% +17.9%

-9.5% -12.7%

Q416 Q117 Q217 Q317 Q417

5.0

5.9 6.5

7.2

7.9

Q416 Q117 Q217 Q317 Q417

4G subs (in million)

4G data usage (GB/sub/month)

1.7x

on course to become no. 1 digital brand

6

increase sales in

digital channels • personalized on-line offers

• upsell in dtac app

• Line Mobile

engaging customer

and retailer apps • digitize all prepaid retailer

trx thru dtac One app

• service, sales, and rewards

thru dtac app

digitization of

customer care • self service via IVR and app

• chat bot/AI

• dtac community

engaging digital

products thru

partnerships • direct operator billing

• video with iFlix

• music with Joox

dtac Accelerate

program • 5th year of operation

• No. 1 startup incubator in

Thailand and No. 3 in SEA

• 34 startups incubated and

>10k jobs created

grooming digital

talents • company-wide digital upskill

• on-line courses

• 40-hr challenge

2300MHz plan

• agreement with TOT awaiting approvals

• vastly increase amount of bandwidth in

service

• initial rollout in densely populated areas

• minimize capex outlay and time to

market by re-using existing infrastructure

• to be launched shortly after the

agreement is signed

7

financial highlights

annual service revenues back to growth

9

5.0 4.3 3.8 3.5 3.9

9.5 10.4 11.1 11.1 11.0

1.5 1.5 1.5 1.3 1.4

23.0 15.5

35.7 43.6

6.0 5.7 16.0 16.2 16.4 16.0 16.2

64.7 64.8

Q416Q117Q217Q317Q417 FY16 FY17

voice data others

service revenues ex. IC data usage THB billion GB/sub/month

3.9 4.4 5.4

6.3 7.2

Q416 Q117 Q217 Q317 Q417

QoQ YoY

+14.8% +86.3%

235 233

242 244 250

220 221 230 231

237

Q416 Q117 Q217 Q317 Q417

ARPU incl. IC ARPU ex. IC

ARPU THB/sub/month QoQ YoY

w/ IC

w/o IC

+2.6%

+2.7%

+6.4%

+8.1%

• data revenue proportion jumped from 55%

to 67% of service revenues ex. IC

• strong postpaid revenue growth more than

compensated decline in prepaid

• data consumption continued to grow

strongly

• ARPU uplift from pre-to-post migration

• ARPU continues to rise from higher

postpaid ARPU and mix of postpaid sub

base

YoY

+0.2% QoQ YoY

+1.7% +1.3%

% smartphone handset margin

67.8% 70.2% 70.3%

71.8% 72.8%

Q416 Q117 Q217 Q317 Q417

-835 -958 -742 -622 -538

-2,505 -2,859

Q416Q117Q217Q317Q417 FY16 FY17

THB billion

10

handset subsidies continue to decline

• 50.5% penetration of

4G-enabled devices

• continued focus on non-subsidy

acquisition

• on a normalized basis (2016),

handset margin would have

been –THB 2.0b in 2017

2.6 2.6 2.2 2.2 1.7

1.6 1.6 1.6 1.7 1.9

0.8 0.8 0.8 0.6 0.7

10.5 8.7

5.9 6.9

3.3 3.0 4.9 5.0 4.6 4.5 4.4

19.7 18.5

Q416Q117Q217Q317Q417 FY16 FY17

regulatory network opex others

cost of services % cost of services THB billion % to service revenues ex. IC

16.1% 15.8%

13.3% 13.6%

10.8%

16.2%

13.4%

9.7% 9.9% 9.8% 10.6%

12.0%

9.1%

10.6%

Q416Q117Q217Q317Q417 FY16 FY17

regulatory costs network opex

• decline in regulatory cost from

the reduction of license and

USO fee rate, as well as DR

rate

• network OPEX well contained

despite ongoing densification

• lower IDD costs and prepaid

commission also contributed to

lower cost of services

* excluding depreciation and amortization, and IC

*

11

cost of services well managed amid massive network densification

YoY

-6.1% QoQ YoY

-2.0% -10.0%

% SG&A expenses • sharp drop in S&M expenses

from transition to digital

channels and efficiency

improvement

• increase in provision for bad

debt in line with strong growth

in postpaid

• gen admin expenses declined

from ongoing operational

excellence programs

SG&A expenses THB billion

8.3%

6.9%

5.3%

6.3% 6.4%

8.7%

6.2%

9.7% 10.0% 9.9% 9.9%

11.1%

10.1% 10.2%

Q416Q117Q217Q317Q417 FY16 FY17

S&M gen admin

% to total revenues

* excluding depreciation and amortization

** excluding restructuring cost

*

1.8 1.4 1.0 1.2 1.3

0.1 0.3 0.4 0.4 0.4

2.1 2.0 1.9 1.9 2.2

7.2 4.9

0.7 1.5

8.3 8.0

4.0 3.7 3.4 3.4 3.9

16.3 14.4

Q416Q117Q217Q317Q417 FY16 FY17

S&M bad debt gen admin**

12

sharp decline in SG&A expenses

##

YoY

-11.4% QoQ YoY

+14.9% -1.1%

EBITDA margin increased 5.1 percentage points

6.8 6.9 8.0 7.7 7.8

27.9 30.4

Q416Q117Q217Q317Q417 FY16 FY17

EBITDA (before other item) EBITDA margin THB billion

31.5% 34.9%

41.0% 41.2% 38.6%

33.8%

38.9%

43.6% 45.4%

50.1% 49.3% 48.6%

43.3%

48.3%

Q416Q117Q217Q317Q417 FY16 FY17

EBITDA margin EBITDA margin ex handset

sharp increase in EBITDA,

mainly driven by

• service revenue growth

• lower regulatory costs

• network OPEX under control

despite ongoing densification

• lower device subsidies

• lower SG&A expenses

13

YoY

+9.1% QoQ YoY

+1.2% +15.9%

• net profit in Q417 benefited from 50%

extra depreciation of qualified CAPEX for

tax calculation in 2017

• dividend payment of THB0.24 per share,

subject to approval by shareholders at the

AGM 2018 14

dividend payment of THB 0.24 per share

key financial ratios

3.2 3.9

3.0 2.5 2.3

1.1 1.1 0.9 0.8 0.8

Q416 Q117 Q217 Q317 Q417

net debt:equity* net debt:ebitda

* excluding other component of shareholders’ equity.

• annual operating cash flow nearly doubled

from higher EBITDA and lower CAPEX

• financial ratios continued to improve

• strong and flexible financial position

operating cash flow THB billion

0.8 2.4 3.9 4.2 3.4

6.0 4.5

4.1 3.5 4.4

7.6 13.9

20.3 16.5

Q416Q117Q217Q317Q417 FY16 FY17

operating CF (ebitda-capex) capex

net profit THB million

30 229

743 601 542

2,086 2,115

Q416Q117Q217Q317Q417 FY16 FY17

YoY

+1.4% QoQ YoY

-9.7% +1,700%

YoY

+82.9% QoQ YoY

-18.3% +332%

one-time provision for impairment of assets – dtac stand-alone

15

• non-cash item

• no impact on consolidated financial statements

• the provision was resulted from ongoing transfer of cash flow from dtac to DTN

Separate financial statement – dtac stand-alone Amount (THB million)

Provision for loss from impairment of deferred right to use of equipment 3,452

The provision resulted in retained earnings of comprising: - Statutory reserve

- Unappropriated retained earnings

1,067 57

1,010

strategic direction and outlook

3 key strategic focuses

17

1

Best Value

2

Digital Leader

3

Lean Operator

18

around previous

year level

service revenues

ex. IC

capex

2018 outlook

EBITDA

excluding payment to TOT on 2.3GHz deal

THB15 – 18 billion around previous

year level

Certain forward looking statements may be made in the course of the presentation. These forward-looking statements

generally can be identified by use of statements that include words or phrases such as dtac or its management

“believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly,

statements that describe dtac’s objectives, plans or goals also are forward-looking statements.

All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ

materially from those contemplated by the relevant forward-looking statement. The forward-looking statements

contained in the slides are not and should not be constructed as representations of the future performance of dtac and

that such statements are an expression of the Company’s reviews based on its current view and certain assumptions

including, but not limited to, prevailing economic and market conditions and currently available information.

disclaimer

Investor Relations

E: ir@dtac.co.th T: +662 202 8882