dtac second quarter 2015

20 July 2015

Investor Relations

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

key highlights

2

23.5m DTN subs

87% of sub base

15.4m smartphone users

57% of sub base

THB7.6b data revenues

46% of service revenues ex. IC

THB6.7b EBITDA

30.5% EBITDA margin

THB3.2b CAPEX

14% to total revenues

THB0.80 per share dividend

138% payout ratio

operational highlights

network rollout on schedule

• continued improvement on 3G/4G

• network quality perception

• limited short-term impact from the

admin court’s injunction

4

13.8 15.8 16.5 17.5 19.6 20.8

0.3 0.3 1.1

2.9 3.4

13.8 16.1 16.8 18.6

22.5 24.2

Q114 Q214 Q314 Q414 Q115 Q215

4G 3G

No. of base stations (in thousands)

in transition to cluster-based model

• reselection of distributors going as

planned

• full organizational structure

already in place, need time to – train personnel, and

– streamline processes

• prepaid registration also impacted

level of gross adds

5

Regions Zones Clusters

Jan Feb Mar Apr May Jun

prepaid gross adds

-37%

prepaid registration on track

• approx. 5.7 million prepaid active

SIM unregistered

• unregistered subs unable to make

calls or use data service after

31 July

• more than 62,000 touch points

available for registration

6

4,001 5,677

no. of subs registered inJun-15

outstanding unregisteredsubs at end of Jun-15

prepaid handset subsidy to slow down

• subsidy level on prepaid segment

the main concern

• prepaid handset subsidy expected

to slow down in the second half

• handset still important for ARPU

development and loyalty

7

33.9% 37.2% 41.2% 48.0% 52.4% 57.1%

Q114 Q214 Q314 Q414 Q115 Q215

smartphone penetration rate

Apr-15 May-15 Jun-15

no. of prepaid subsidized phones sold

-50%

balancing data monetization and acquisition

• maintain ‘love & roll’ limited data

price plans

• reintroduce non-stop data price

plans at selected price levels for

competitiveness

• control mechanism needed to

avoid abuses

8

financial highlights

87% of sub base ported to dtn

12.4 8.9 8.0 7.8 5.0 3.5

15.9 19.1 19.7 20.2 23.5 23.5

28.2 28.0 27.8 28.0 28.4 26.9

Q114 Q214 Q314 Q414 Q115 Q215

dtac DTN

224 224 218 222 215 218

208 203 197 200 195 198

Q114 Q214 Q314 Q414 Q115 Q215

ARPU incl. IC ARPU ex. IC

250 236 231 229 216 206

207 194 188 186 174 165

Q114 Q214 Q314 Q414 Q115 Q215

MoU incl. IC MoU ex. IC

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

• decline in prepaid sub base due to

SIM registration requirement

• postpaid sub base continued to rise

• MoU further declined as voice usage

has been substituted with data

QoQ YoY

w/ IC

w/o IC

+1.2%

+1.3%

-2.5%

-2.4%

QoQ YoY

w/ IC

w/o IC

-4.6%

-5.3%

-12.9%

-14.8%

10

• slight increase in ARPU QoQ due to

decline in prepaid sub base

9.4 9.2 8.4 8.2 7.8 7.3

6.6 6.9 7.0 7.3 7.5 7.6

1.4 1.2 1.2 1.4 1.6 1.5

17.4 17.3 16.6 16.9 16.8 16.4

Q114 Q214 Q314 Q414 Q115 Q215

voice data others

service revenues ex. ic data revenues

78% 79% 82% 83% 85% 86%

7% 6% 6% 5% 4% 4% 15% 15% 13% 12% 11% 10%

Q114 Q214 Q314 Q414 Q115 Q215

mobile internet messaging others

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

• strong demand for data services

continued to drive data revenues • popular mobile apps have constantly

driven up mobile Internet usage and

revenue

QoQ YoY

-2.0% -5.3%

11

• data revenue surpassed voice

revenue for the first time

data proportion continued to rise

37.8% 39.6%

42.4% 43.4% 44.5% 46.3%

Q114 Q214 Q314 Q414 Q115 Q215

3.3 2.8 2.5

6.6

4.4 3.8

Q114 Q214 Q314 Q414 Q115 Q215

% smartphone handset revenue

33.9% 37.2%

41.2% 48.0%

52.4% 57.1%

Q114 Q214 Q314 Q414 Q115 Q215

handset margin

-0.8% -4.9%

-18.5%

-4.3%

-17.8% -19.8%

Q114 Q214 Q314 Q414 Q115 Q215

THB billion

• dtac-branded phones continued to

sell quite well

• lower revenue reflected the shift

towards lower priced models

• handset margin remained in negative

from aggressive prepaid handset

campaigns

• smartphone users continued to rise

from handset campaigns and strong

demand for data services

12

smartphone users continued to rise

QoQ YoY

-14.0% +37.6%

4.5 3.9 3.6 3.6 3.1 3.1

1.1 1.2 1.2 1.3 1.2 1.4

0.8 1.0 0.9 0.9 1.1 1.2

6.4 6.1 5.7 5.8 5.4 5.7

Q114 Q214 Q314 Q414 Q115 Q215

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% 18.8%

6.3% 6.8% 7.2% 7.6% 7.4% 8.8%

Q114 Q214 Q314 Q414 Q115 Q215 regulatory costs network opex

• slight increase in regulatory

cost from higher domestic

roaming and numbering fee

• higher network opex from

expansion of 3G and 4G

networks

* excluding depreciation and amortization, and IC

*

13

higher cos from network expansion

QoQ YoY

+4.7% -6.8

% sg&a expenses

• higher selling and marketing

expenses to stay competitive

• general admin under control

SG&A expenses THB billion

5.7%

6.9%

7.3% 7.7%

6.0%

7.4%

7.0% 7.5%

6.9% 7.2%

7.6% 7.7%

Q114 Q214 Q314 Q414 Q115 Q215

S&M gen admin

% to total revenues

* excluding depreciation and amortization

*

1.3 1.5 1.5 1.9 1.4 1.6

0.2 0.2

-0.1

0.3 0.2 0.2

1.6 1.6 1.4 1.8

1.7 1.7

3.0 3.4 2.9

4.1 3.3 3.5

Q114 Q214 Q314 Q414 Q115 Q215

S&M bad debt gen admin

14

stable SG&A

QoQ YoY

+6.2% +4.9%

ebitda margin under pressure

8.3 8.0 7.8 7.0 7.4 6.7

Q114 Q214 Q314 Q414 Q115 Q215

ebitda ebitda margin THB billion

36.6% 36.4% 37.3%

27.7% 32.2% 30.5%

43.0% 42.4% 44.9% 39.0%

44.1% 41.0%

Q114 Q214 Q314 Q414 Q115 Q215

EBITDA margin EBITDA margin ex handset

• lower revenue and higher costs

depressed EBITDA margin

• EBITDA margin was also under

pressure from handset

business

15

QoQ YoY

-9.1% -16.2%

1.40 1.25 1.09 0.80 0.97

0.58

3.3 3.0 2.6 1.9 2.3 1.4

Q114 Q214 Q314 Q414 Q115 Q215

net profit dividend THB per share (top)

THB billion (bottom)

THB per share

1.42 1.58 1.57 2.34

0.89 0.80

Q114 Q214 Q314 Q414 Q115 Q215

• decline in net profit as a

result of

− lower EBITDA,

− higher D&A charges, and

− loss on foreign exchange

• 138% dividend payout ratio

16

net profit declined

QoQ YoY

-40.0% -53.4%

QoQ YoY

-10.1% -49.4%

• higher debt level pushed up

both net debt to equity and

net debt to EBITDA ratios

• financial ratios remained

strong

5.3 3.3

5.8 2.7 1.8

3.5

3.0 4.6

2.0

4.4 5.5 3.2

8.3 8.0 7.8 7.0 7.4 6.7

Q114 Q214 Q314 Q414 Q115 Q215

operating CF (ebitda-capex) capex

operating cash flow key financial ratios THB billion

1.1 0.9 0.9

1.9 2.2

2.5

0.7 0.5 0.5 0.9 0.8 1.0

Q114 Q214 Q314 Q414 Q115 Q215

net debt:equity* net debt:ebitda

17

strong financial position

* excluding other component of shareholders’ equity.

strategic direction and outlook

Top priorities for 2nd half 2015

19 19

Network

• 3G/4G rollout

• network optimization

• network perception campaign

Sales & distribution

• cluster operating model

• branded retail shop expansion

• digital distribution

Data monetization

• 4G data initiatives

• device strategy

• CLM engine

Customer experience

• brand refreshment

• net promoter score/closed

feedback loop

• customer service experience

20

slightly below

2014

service revenues ex. IC

18 - 20

capex (in THB billion)

2015 outlook

EBITDA margin

31% – 33%

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