dtac first quarter 2015

24 April 2015

Investor Relations

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

key highlights

2

23.5m DTN subs

83% of sub base

14.9m smartphone users

52% of sub base

THB7.5b data revenues

44% of service revenues ex. IC

THB7.4b EBITDA

32% EBITDA margin

THB5.5b CAPEX

24% to total revenues

THB0.89 per share dividend

92% payout ratio

experience dtac4G in bangkok and over 40 cities nationwide

operational highlights

key development in Q115

4

• completed on schedule

• further investment needed to

take leading data position

• dtac drives the industry

towards limited data plans

• industry partly follows

network pledge

data monetization

handset campaigns

299

399

599

799

999

THb/month

100 mins 1.5GB free

150 mins 3.0GB free

300 mins 5.0GB free

400 mins 7.0GB free

900 mins 9.0GB free

• device important to drive data

penetration and ARPU

• subsidy level on prepaid

device a concern

Bangkok

Phuket Chiang Mai Khon Kaen Ubon

Ratchathani

network pledge accomplished beyond what has been pledged

5

• 6,700 BTS covering 40 cities

• THB 10 billion CAPEX

• 4G rollout to capitalize on device growth

– 100% 4G LTE coverage in BMA

– approx. 2.1 million 4G devices on dtac

network and growing rapidly

– approx. 1 million 4G users

data monetization adjust price plans to better monetize data growth

• for postpaid

– new postpaid tariff ‘love & roll’ launched

– new sale of only ‘limited data’ price plans

• for prepaid

– started introducing ‘limited data’ price plans

– price changes on selected toppings for

better monetization

6

handset campaigns device important to drive data penetration and ARPU

• 4G

– to enhance customer experience on dtac’s

4G offering

• 3G

– retention & loyalty programs for mid- to

high-end segment

– increase data and smartphone users for

low-end segment

• prepaid device subsidy remained

intense upcountry

7

financial highlights

83% of sub base ported to dtn

12.4 8.9 8.0 7.8 4.9

15.9 19.1 19.7 20.2 23.5

28.2 28.0 27.8 28.0 28.4

Q114 Q214 Q314 Q414 Q115

dtac DTN

224 224 218 222 215

208 203 197 200 195

Q114 Q214 Q314 Q414 Q115

ARPU incl. IC ARPU ex. IC

250 236 231 229 216

207 194 188 186 174

Q114 Q214 Q314 Q414 Q115

MoU incl. IC MoU ex. IC

dtac vs dtn subscribers arpu mou million subs THB/sub/month mins/sub/month

• positive net adds continued for both

prepaid and postpaid

• MoU further declined as voice usage

has been substituted with data

QoQ YoY

w/ IC

w/o IC

-3.0%

-2.6%

-4.0%

-6.2%

QoQ YoY

w/ IC

w/o IC

-5.9%

-6.4%

--13.7%

-16.0%

9

• ARPU dropped as increase in data

could not compensate decline in voice

9.4 9.2 8.4 8.2 7.8

6.6 6.9 7.0 7.3 7.5

1.4 1.2 1.2 1.4 1.6

17.4 17.3 16.6 16.9 16.8

Q114 Q214 Q314 Q414 Q115

voice data others

service revenues ex. ic data revenues

78% 79% 82% 83% 85%

7% 6% 6% 5% 4%

15% 15% 13% 12% 11%

Q114 Q214 Q314 Q414 Q115

mobile internet messaging others

data revenues breakdown

37.8% 39.6%

42.4% 43.4% 44.5%

Q114 Q214 Q314 Q414 Q115

THB billion % of service revenues ex. IC % of vas revenues

• high demand for data services

continued to drive proportion of data

revenues

• popular mobile apps have constantly

driven up mobile Internet usage and

revenue

QoQ YoY

-0.7% -3.6%

10

• avg. daily service revenues improved

from last quarter

• YoY development also improved from

last quarter, but still in negative

data proportion continued to rise

3.3 2.8 2.5

6.6

4.4

Q114 Q214 Q314 Q414 Q115

% smartphone handset revenue

33.9% 37.2%

41.2%

48.0% 52.4%

Q114 Q214 Q314 Q414 Q115

handset margin

-0.8% -4.9%

-18.5%

-4.3%

-17.8%

Q114 Q214 Q314 Q414 Q115

THB billion

• higher sale of dtac-branded and

other phones compared to last year

• revenue decline QoQ from high

volume of iPhone sale last quarter

• handset margin deteriorated QoQ

from lower iPhone sale and higher

prepaid subsidy

• success of handset campaigns

increases number of smartphone

users

11

more than half of sub base using smartphone

QoQ YoY

-33.0% +34.6%

4.5 3.9 3.6 3.6 3.1

1.1 1.2 1.2 1.3 1.2

0.8 1.0 0.9 0.9 1.1

6.4 6.1 5.7 5.8 5.4

Q114 Q214 Q314 Q414 Q115

regulatory network opex others

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

25.6% 22.6% 21.6% 21.2%

18.3%

6.3% 6.8% 7.2% 7.6% 7.4%

Q114 Q214 Q314 Q414 Q115 regulatory costs network opex

• regulatory cost further

declined from progressive

porting of subs to 2.1GHz

• network opex under control

despite expansion

− approx. THB 100 million

reversal of accrued expenses

* excluding depreciation and amortization, and IC

*

12

sharp decline in regulatory cost

QoQ YoY

-6.4% -15.1%

% sg&a expenses • selling and marketing expenses

declined sharply from high

spending level in Q414

• general admin under control

• continued to get results from

operational excellence

programs

SG&A expenses THB billion

5.7%

6.9%

7.3% 7.7%

6.0%

7.0%

7.5%

6.9% 7.2%

7.6%

Q114 Q214 Q314 Q414 Q115

S&M gen admin

% to total revenues

* excluding depreciation and amortization

*

1.3 1.5 1.5 1.9 1.4

0.2 0.2

-0.1

0.3 0.2

1.6 1.6 1.4 1.8

1.7

3.0 3.4 2.9

4.1 3.3

Q114 Q214 Q314 Q414 Q115

S&M bad debt gen admin

13

SG&A dropped from high level in Q414

QoQ YoY

-17.9% +10.3%

ebitda margin rebounded from last quarter

8.3 8.0 7.8

7.0 7.4

Q114 Q214 Q314 Q414 Q115

ebitda ebitda margin THB billion

36.6% 36.4% 37.3%

27.7% 32.2%

43.0% 42.4% 44.9% 39.0%

44.1%

Q114 Q214 Q314 Q414 Q115

EBITDA margin EBITDA margin ex handset

• EBITDA margin is under

pressure from handset

business

• Excluding handset business,

EBITDA expanded 1.1pp YoY,

and 5.1pp QoQ

14

QoQ YoY

+4.8% -10.9%

1.40 1.25 1.09 0.80 0.97

3.3 3.0 2.6 1.9 2.3

Q114 Q214 Q314 Q414 Q115

net profit dividend THB per share (top)

THB billion (bottom)

THB per share

1.42 1.58 1.57 2.34

0.89

Q114 Q214 Q314 Q414 Q115

• higher EBITDA and lower

D&A expenses contributed to

rebound in net profit

• partly offset by higher

interest expense and income

tax

15

net profit improved QoQ

QoQ YoY

+21.2% -30.6%

QoQ YoY

-62.0% -37.3%

• operating cash flow pressured

by higher CAPEX

• strong financial ratios

• net debt to equity ratio

increased due to lower equity

from dividend payment, while

amount of net debt declined

5.3 3.3

5.8 2.7 1.8

3.0 4.6

2.0

4.4 5.5

8.3 8.0 7.8 7.0 7.4

Q114 Q214 Q314 Q414 Q115

operating CF (ebitda-capex) capex

operating cash flow key financial ratios THB billion

1.1 0.9 0.9

1.9 2.2

0.7 0.5 0.5 0.9 0.8

Q114 Q214 Q314 Q414 Q115

net debt:equity* net debt:ebitda

16

strong financial position

* excluding other component of shareholders’ equity.

strategic direction and outlook

staying focused on 3 strategic pillars

18

• 3G & 4G LTE network

• device bundles

• data-centric price plan

• digital services

• emotional connection

• simplified customer journey

• customer focused distribution

• systematic measurements

• regulatory cost reduction

• cluster-based operating model

• network sharing/rental

• efficiency in OPEX

internet for all

loved by customers

efficient operation

2015 network and 4g ambitions

19

3G footprint covering

95% of population

fastest 4G network on

15MHz bandwidth

2.5 million 4G customers and

60% of customers using data

20

low single digit

service revenues ex. IC growth

18 - 20

capex (in THB billion)

2015 outlook

in-line with previous

year

EBITDA margin

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.

21

disclaimer

Investor Relations

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