True Corporation Public Company Limited Asian Investment Conference March 2010 Disclaimer: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.
Agenda Noppadol Dej-Udom, Group CFO True Corporation Public Company Limited Strategic overview FY09 highlights Business highlights: TrueOnline, TrueMove, TrueVisions, TrueMoney, TrueLife Looking forward Q&A 2 5 7
2 True is the only integrated operator in Thailand CP Group CP Group KfW KfW Public Public shareholders shareholders 58.2% 9.0% 32.8% 99.9% 98.9% 91.8% 99.9% 99.9% (Wireline) (Wireless) (Pay-TV) (Digital commerce) (Digital content & access) Broadband leader ~72% value share in Bangkok Metropolitan Area 691K broadband subs Largest fixed line (BMA) #3 mobile player 15.8 mn subs 24.6% market share #1 pay TV operator Sole nationwide player 1.7 mnsubs Over 1.2 mn subs from mass market strategy success Mobile payment leader 5.7 mn E-wallet subs World s first mobile payment via RFID Key convergence tool Richest content across different platforms #1 casual on-line game Leading community portal 1.9 mn fixed line subs New revenue stream: IDD, VoIP & data gateway New revenue source from advertising Note: (1) Subscriber figures as of December 31, 2009
3 Our focused strategy is to build around our integrated platform 1 Strengthen Convergence Lifestyle 2 Increase mobile market share Become 3G leader using exclusive convergence platform 3 Develop mass market penetration of Pay-TV and Broadband 4 Maintain financial discipline and reduce balance sheet leverage
4 Continued progress in convergence strategy '000 households 1,191 757 True Convergence Index* 1,565 1,019 1,693 1,139 1,905 1,279 2,137 1,470 2,349 +23% Y-o-Y 1,684 * No. of households using more than two True services; third-party survey normally conducted twice a year 385 477 483 395 403 337 97 151 151 241 190 182 Jul'07 Feb'08 Jul'08 Feb'09 Jul'09 Feb'10 Super hi-speed package 4 products 3 products 2 products +16.3% Y-o-Y TrueVisions-TrueMove Freeview +24.0 Y-o-Y '000 subscribers 364 333 346 317 33 29 32 32 288 301 314 331 382 387 23 30 359 357 '000 subscribers 819 674 570 497 980 1,004 1,016 937 622 651 635 625 177 249 315 329 369 391 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Super hi-speed -TMV Super hi-speed -TVS These packages bundle SUPER Hi-speed Internet with either TrueMove (TMV) or TrueVisions (TVS) services 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Upsold Non-upsold SSK (Dstv) is a package bundling together TrueMove and TrueVisions services Upselling refers to the upgrading by mass market subscribers to higher-value packages
5 Numerous convergence benefits Mobile Subscriber growth for all businesses Lower churn for mobile by bundling with Broadband and pay TV s lower-churn subs high churn Higher revenue per user Increased share of bundled subs in key businesses low churn Difficult for competitors to replicate Broadband Pay TV
6 Diversified revenue & EBITDA base FY07 Pay TV (TrueVisions) 17% Mobile (TrueMove) Fixed line 44% (TrueOnline) 39% Revenue mix FY08 Pay TV (TrueVisions) Mobile 18% (TrueMove) Fixed line 42% (TrueOnline) 40% FY09 Pay TV (TrueVisions) Mobile 18% (TrueMove) Fixed line 42% (TrueOnline) 40% Bt 51,818 mn Voice 65% Non-voice 35% FY07 Pay TV (TrueVisions) 13% Mobile (TrueMove) Fixed line 38% (TrueOnline) 49% Bt 51,921 mn Voice 62% Non-voice 38% EBITDA mix FY08 Pay TV (TrueVisions) Mobile 14% (TrueMove) 31% Fixed line (TrueOnline) 55% Bt 52,605 mn Voice 60% Non-voice 40% FY09 Pay TV Mobile (TrueVisions) 13% (TrueMove) 37% Fixed line (TrueOnline) 50% Bt 19,754 mn Bt 18,515 mn Note: 1/ Revenues exclude product sales and Interconnection charges 2/ Non voice includes data service (Internet/Broadband and data network), video (pay TV) and mobile non voice Bt 19,582 mn
7 True is a strong and highly visible brand Thailand s Most Innovative Company 2009 Wall Street Journal Asia Survey 2006/07 Thailands top 10 Overall, ranked 1 C.P. Seven Eleven(CP All) 3.96 Convenience-store operator In innovation 1 True Corp. Expanding in cable, broadband 2 Siam Cement 3.82 Construction conglomerate 2 C.P. Seven Eleven (CP ALL) Adding convenience stores 3 Charoen Pokphand 3.68 Dominant agribusiness firm 3 Advanced Info Service Competitive mobile player Gold Trusted Brand Awards 2004-2008 4 5 BumrungradHospital 3.63 Medical-tourism pioneer Kasikornbank 3.61 Banking, financial -services firm 4 5 Total Access Communication A leading cellular firm Kasikornbank Marketing heavily to consumers 6 Siam Commercial Bank 3.55 Banking, financial -services firm 6 Big CSupercenter Retailer known for low price 7 Advanced Info Service 3.53 Leading mobile-phone provider 7 Siam Commercial Bank Long-standing commercial bank 8 PTT 3.52 Former state oil company 8 Charoen Pokphand A big name in agribusiness field 9 Land & House 3.46 Property-development firm 9 BEC World Operates popular TV channel 10 True Corp. 3.32 Cell, cable-tv, broadband firm 10 Land & House Trusted home-building brand
8 Financial highlights FY2009 (Units in millions of Baht unless otherwise indicated) TrueOnline 1/ TrueMove 1/ TrueVisions 1/ Consolidated Total Revenue (excl IC) 26,927 26,107 9,725 55,408 % growth Y-o-Y 0.7% 11.5% -4.9% 4.4% Service Revenue (excl IC) 26,387 23,575 9,533 52,605 % growth Y-o-Y 1.5% 3.4% 1.1% 1.3% EBITDA 9,804 7,226 2,622 19,582 % growth Y-o-Y -3.8% 27.0% -1.7% 5.8% Depreciation & amortization (5,784) (4,105) (994) (10,830) % growth Y-o-Y 12.9% -19.4% 3.6% -2.7% Interest expense (net) (3,092) (3,598) (103) (6,793) % growth Y-o-Y -8.6% 7.8% -9.0% -0.6% Tax, net (553) (787) (534) (1,934) Current tax (408) - (497) (905) growth Y-o-Y 73 (0) 37 110 Deferred income tax (146) (787) (37) (1,030) growth Y-o-Y 347 426 73 847 NIOGO 2/ (101) (1,411) 983 (518) growth Y-o-Y (1,303) 1,833 (183) (623) NIOGO excl. deferred tax 45 (624) 1,020 511 growth Y-o-Y (955) 2,260 (110) 223 Free Cash Flow 2,840 126 1,288 4,155 growth Y-o-Y (1,310) 478 408 (456) Capex 2,551 2,637 232 5,289 growth Y-o-Y 144 (1,595) (382) (1,994) 1/ Before eliminations of inter-company transactions 2/ NIOGO: Net income (loss) from ongoing operations
%QoQ %YoY %FY08 %FY09 Service revenue excl. IC +4.1% +4.2% +0.2% +1.3% EBITDA -4.0% +0.9% -6.3% +5.8% 9 Group performed relatively well in 2009 in line with guidance Bt mn 41,456 Service revenue excl. IC 50,538 51,818 51,921 52,605 Bt mn (2,760) NIOGO (843) (1,179) 288 105 511 (518) (3,766) (5,986) (6,748) NIOGO (excl. deferred income tax)- Group NIOGO - Group EBITDA & EBITDA margin* Free cash flow 35.6% Bt mn 15,705 33.2% 17,255 37.3% 19,754 34.9% 35.3% 18,515 19,582 Bt bn 11.6 10.4 13.2 10.9 10.4 7.3 11.9 9.4 7.3 5.3 * Based on revenue excludes IC Cash flows from operating activities Capex
10 EBITDA margin improved on net IC reduction, cost control EBITDA margin* 35.6% 33.2% 37.3% 34.9% 35.3% TrueOnline TrueMove TrueVisions Group 2009 EBITDA margin of 35.3% included the effect of Bt207mn content cost reversal; stripping that out, EBITDA margin would have been 35.0% EBITDA margin improved due to reduced net IC, cost control Selling expenses down 5.3% for FY09 on increased direct sales focus New business expansion and seasonal cost increases impacted EBITDA margin in Q4
11 Net debt-to-ebitda ratio improves further Bt bn 83.1 83.1 Long-term* debt composition 94.1 86.6 11.7 84.9 76.5 78.8 74.9 76.7 78.0 73.1 11.1 75.6 72.3 0.0 6.9 32.4 10.6 10.6 67.5 14.0 32.8 9.0 31.7 29.3 28.9 26.0 76.5 78.8 74.9 73.1 65.4 62.7 54.2 49.6 42.1 38.1 36.1 32.5 Net debt-to-ebitda vs. Interest coverage times 4.8 4.5 3.5 3.7 3.1 3.3 2.7 2.5 2.5 2.6 1997 1998 1999 2000 2001 2002 2003 2004 TrueOnline TrueMove TrueVisions Note: 1/ figures include current portion of long-term debt but do not include financial lease and debt issuance costs 2/ TrueVisions debt includes all L-T loans for TrueVisions acquisition Net debt-to-ebitda Interest coverage Note: figures do not include financial lease Bt6.8bn of debt repaid during the year excluding refinancing Debt level declined further to Bt68bn, lowest since 1997 crisis FY09 net debt to EBITDA improved significantly to 3.1x
12 Further improving credit profile remains a priority Credit profile improved significantly in 2009 Bt 19.6 bn raised, reflecting trust among bond and equity investors - Bt6.38bn through rights offering - Bt13.2bn through 2 local bond issues at TrueOnline Repayment schedule at TrueOnline Bt bn 6.6 6.2 7.2 8.0 5.2 5.0 3.9 3.6 3.6 3.8 4.0 4.2 2.9 2009 2010 2011 2012 2013 2014 2015 2016 Total scheduled repayment at TrueOnline pre 2 refinancing activities in 2009 Repayment schedule post 2009 refinancing
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14 Revenues up on Broadband and new businesses Service revenue Bt mn 22,964 23,972 24,528 25,989 26,387 5,226 7,792 9,220 9,944 10,397 1,699 3,110 3,855 5,866 7,426 NIOGO 1,000 782 Bt mn 1,201 (158) (452) 45 (101) 16,039 13,070 11,453 10,179 8,564 (1,145) (2,456) Internet, Broadband and Business data services 2/ New revenue stream (IDD, Internet & data gateway, VoIP), convergence & others 3/ Traditional voice (fixed-line, payphone, PCT) Remark: 1/ recognized as non-voice revenues under previous categorization 2/ includes IDD (only Online s, excluding TrueMove s IDD revenue share from CAT), Internet & Data Gateway services and VoIP 3/ excludes IDD and VoIP revenues 44.9% Bt mn 10,677 EBITDA & EBITDA margin 40.3% 9,899 9,670 10,195 9,804 1/ 38.8% 38.1% 36.4% (2,713) NIOGO excl. deferred tax NIOGO Bt bn 6.9 3.2 Free cash flow 6.6 5.5 5.4 4.1 3.6 2.4 2.6 1.8 EBITDA EBITDA margin Cash flows from operating activities Capex TrueOnline %QoQ %YoY %FY08 %FY09 Service revenue +6.6% +1.5% +6.0% +1.5%
15 Strong Broadband growth; premium packages boost ARPU Broadband revenue & subscribers True s Broadband ARPU '000 subscribers 300 443 548 4,229 632 4,932 691 5,495 Bt/sub/mo 739 721 709 711 723 Bt mn 3,258 2,047 Service revenues Total subscribers FY09 market share by value MaxNet/3BB 2% TOT 25% Other 1% 95.2% True s super hi-speed subs by speed 3.0% 1.8% 15.9% 4.6% 11.9% BMA True 72% 2008 67.6% 2009 Less than 3Mbps 3Mbps 4-5Mbps 8Mbps up * New 3Mbps package offered to existing subscribers of the 1Mbps Bt599/mo package starting Oct 8. This resulted in subscriber re-categorization in 4Q09. Broadband %QoQ %YoY %FY08 %FY09 Service revenues +3.0% +12.4% +16.6% +11.4%
16 Penetration (% household) Huge potential for Broadband; Wi-Fi also supports growth 100% 80% 60% 40% 20% 0% 88% 81% 81% 57% 21% 7% 5% 1% Thailand Malaysia The Philippines Broadband penetration Indonesia Hong Kong Singapore New Zealand Broadband penetration GDP per capita (PPP) Source: CIA World Factbook, The World Bank, Asia Television Advertising Coaltion, Strategy Analytics 2008 Taiwan 60 40 20 0 GDP per capita (PPP) (US$ '000) Thailand Broadband penetration forecast Wi-Fi subscribers* and net adds 263 '000 subscribers 153 110 78 32 110 13 18-13 13 32 2006 2007 2008 2009 Previous period sub Net Adds *Excl. Bangkok Green Wi-Fi subscribers High growth potential from relatively low penetration at 9% (Dec 09) Expect ~17% household penetration within 2011 True is Thailand s most extensive Wi-Fi network operators 18k hotspots in BMA & key provincial areas
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18 TrueMove posts strong performance; share in revenue increases %QoQ %YoY %FY08 %FY09 Service revenue excl. IC +4.8% +7.4% -4.4% +3.4% EBITDA +5.0% +43.4% -24.8% +27.0% Service revenue & market share NIOGO 13.8% 15.3% 15.7% 14.4% 15.0% Bt mn 46 19,594 1,331 1,477 22,309 2,101 2,131 23,836 2,478 2,490 22,796 23,575 2,660 2,573 2,679 3,134 (2,725) (777) (624) (1,411) 16,786 18,077 18,868 17,457 17,868 (2,725) (3,100) (3,433) (2,883) (3,244) Voice Non-voice International Roaming and others % TMV revenue market share NIOGO excl. deferred tax NIOGO EBITDA & EBITDA margin Free cash flow Bt mn 23.4% 5,095 21.4% 5,072 30.6% 7,566 24.3% 5,691 27.7% 7,226 Bt bn 7.3 5.3 4.7 4.9 5.1 4.2 4.1 3.9 2.6 2.8 Net IC - - +164 (845) (32) EBITDA EBITDA margin (revenue excl. IC) Cash flows from operating activities Capex
19 Net IC for the full year managed successfully Net IC revenue (cost) Bt mn 164 38 (234) (128) (28) (20) (21) (32) (845) 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 2007 2008 2009 FY09 net IC payment reduced by over Bt800mn from FY08 The success of on-net promotions had an increased impact in Q4 Positive net IC not expected over long term %QoQ %YoY %FY08 %FY09 Net IC revenue (cost) n.m. +129.4% n.m. +96.2%
Key growth drivers postpaid, non-voice; supported by convergence and smartphone 11.5% 11.3% '000 subscribers 449 TMV s postpaid subscribers 546 97 453 449 14.1% 718 172 546 16.0% 971 253 718 19.1% 1,226 255 971 TMV s postpaid revenue & ARPU Bt/mo 911 772 676 510 428 4,979 Bt mn 5,366 387 4,393 463 4,870 4,930 532 705 3,929 4,338 4,225 5,807 1,082 4,725 20 (3) Previous sub Net adds % postpaid market share Voice Non-Voice (SMS & high-speed data) Postpaid ARPU Bt mn 7.5% 1,477 TMV s non-voice revenues 11.8% 10.4% 9.6% 2,679 2,490 2,131 13.3% 3,134 56.4% TMV s non-voice revenue mix 30.1% 51.8% 13.5% 17.9% 30.3% Non-voice revenues as % of service revenues excl. IC 2008 2009 Messaging (SMS/MMS) Mobile Internet Content Postpaid %QoQ %YoY %FY08 %FY09 Non-voice %QoQ %YoY %FY08 %FY09 Service revenue +8.5% +20.8% +1.2% +17.8% Non-voice revenues +13.9% +27.1% +7.6% +17.0%
TrueMove continues to gain 1/3 share in market net adds; Postpaid growth sustains ARPU 21 Subscribers - TrueMove Share of net adds Big Three 15.1% 19.4% 23.2% 24.3% 24.6% mn subscribers 12.1 14.8 2.7 15.8 1.0 38.4% 33.0% 35.3% 36.5% 42.0% 7.6 4.5 3.1 1.1 3.4 4.5 4.5 7.6 12.1 14.8 27.9% 33.9% 30.0% 33.1% 28.0% 33.8% 33.1% 34.7% 30.4% 30.0% Previous sub Net adds % TMV subscriber market share TrueMove DTAC AIS Bt/sub/mo 911 772 ARPU - TrueMove 676 Post-paid 8% Subscriber mix - TrueMove Post-paid 7% 393 321 292 250 191 158 510 428 130 115 105 90 Prepaid Postpaid Blended ARPU 2009 Pre-paid 92% 2008 Pre-paid 93%
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%QoQ %YoY %FY08 %FY09 Service revenue +6.1% +5.3% +6.4% +1.1% EBITDA +0.7% -16.9% +5.5% -1.7% 23 Service revenue grows on subscription and advertising Service revenues NIOGO Bt mn 7,943 8,445 8,866 9,431 9,533 Bt mn 866 1,418 1,007 1,166 983 866 1,245 1,097 1,130 1,020 NIOGO excl. deferred tax NIOGO EBITDA & EBITDA margin Free cash flow Bt mn 24.2% 1,959 26.4% 25.9% 26.1% 27.0% 2,666 2,527 2,622 2,366 Bt bn 2.2 0.8 1.8 0.9 0.9 0.7 1.5 0.6 1.5 0.2 EBITDA EBITDA margin Note: 2009 includes the reversal of over-accrued content-related cost (Bt207mn) Cash flows from operating activities Capex
%QoQ %YoY %FY08 %FY09 Total subscribers +1.2% +13.2% +41.4% +13.2% ARPU -3.0% -16.7% -10.5% -18.4% 24 Mass market success continues to drive subs growth Bt/sub/month 1,291 1,217 1,104 988 806 '000 subscribers 624 484-65 - 93 Subscribers & ARPU 1,039 90 319 149 1,469 143 527 1,663 198 536 320 470 484 466 481 479 459 Net adds 26 140 415 430 194 ( 000) Premium package Standard package Free view package Free to air ARPU Bundled package subscribers & upselling rate 38.5% 30.4% 19.0% 1,016 '000 subscribers 819 92 394 46 391 249-65 75 Upsold Non-upsold (Free-to-air) Upselling rate Upselling refers to the upgrading by mass market subscribers to higher-value packages Key growth segment: mass market subs upgrading to Standard (paid) package Premium subscriber base impacted by economy, influx of new cable/satellite TV operators Upselling rate rose to 38.5% vs. 30.4% at the end of 2008
25 High growth opportunity from low penetration Pay TV penetration (Unit : Mil HH) 19.1 50% 57% 72% 16% 16.0 1.5 1.6 5.3 2.7 2.6 2.2 1.1 0.6 0.5 0.6 1.6 Thailand Malaysia Singapore Hong Kong No. of HH Non Pay TV HH Local cable subscriber % Pay TV penetration Note : 1) Data source : Pan-Regional TV in Asia 2009, 2Q09, Casbaa 2) Thailand data : AGB Neilson research Thailand s pay TV penetration is relatively low (16%) compared to Asia-Pacific peers TrueVisions is the only nation-wide operator with exclusive key content
26 Advertising to enhance profitability Commercial ads gradually introduced since Nov 09 with no negative feedback Advertizing opportunities on both self-produced and turn-around channels with marginal extra cost Advertising offers high potential: time/revenue sharing and channel partnerships Eight of the top ten rated cable TV channels in Thailand are self-produced by True Visions Market size of ad spending (Bt bn) 84 86 90 92 90 90 71 61 51 53 29 41 24 38 41 21 20 17 13 14 24 25 27 30 33 37 42 37 36 36 39 39 37 47 50 53 53 51 53 97 98 99 00 01 02 03 04 05 06 07 08 09 TV Others Source: AGB Nielsen Media Research, September 2009 Source: AGB Nielsen Media Research
27 TrueMoney & TrueLife continue to support Group growth TrueMoney: increase in cash card sales and nationwide network of TrueMoney Express payment counters TrueLife: strong performance of online games; True App Center launch supports mobile non-voice growth
28 Regulatory/ Litigation Update 3G 2.1GHz licensing remains hopeful; certain issues remain outstanding MOA signed in Jan 09 to use transferred network for 5 years after 2013; legally-binding immediately 3G 850MHz negotiation with CAT for commercial launch progressing Frequency Allocation Act could be enacted by end of 2010 Mobile Number Portability ( MNP ) clearing house could be established by YE10 IC regime NTC recently approved Bt 0.50 rate for DTAC and Hutch Concession amendments were agreed by both operators and state agencies TOT 3G TrueMove has officially approached TOT for network roaming opportunity
2010 Targets and Strategies Target: Low-to-mid single-digit growth in service revenue (excl IC) Leverage convergence to grow revenue; cost management to enhance profitability Enhance network coverage/capacity and customer experience at touch-points Emphasize content development and innovation; explore opportunities to export digital content and application to other countries in the region Strengthen access channel to customers e.g., direct sales, local community leaders Target: Low single-digit revenue growth with double-digit growth in Broadband Broadband: Differentiate through innovation, convergence and superior network/service quality; expand market for ultra hi-speed Broadband; increase provincial presence; remain competitive on price Fixed-line: Decelerate declines by tariff rebalancing Int l Gateway: target high-margin enterprise customers; regional expansion IDD: increasing usage among True fixed-line subscribers Target: Mid single-digit revenue growth; slight net IC payment Rebalance tariffs for on/off net calls while actively managing IC Continue to focus on customer service/ retention Capture mobile Internet growth through data network capacity expansion (2G+3G), content development, innovative tariff plans, further promoting smartphone sales Target: High-single digit revenue growth; ad revenue of Bt700mn Bt1bn Maintain mass market momentum to maximize advertising opportunities Focus on customer retention especially at the premium segment Actively develop content to serve each segment e.g., HD channels for premium subscribers; local programs for mass market Anti-piracy initiatives 29
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Appendix Slides (#) 1. Normalized results (Consolidated) A1 2. Normalized TrueOnline Results A2 3. Normalized TrueMove Results A3 4. Normalized TrueVisions Results A4 5. Normalized 4Q 2009 Results (All Businesses) A5 6. Normalized FY 2009 Results (All Businesses) A6 7. Consolidated Revenue Profile (Before Eliminations) A7 8. Consolidated revenue profile (After eliminations) A8 9. Consolidated Operating Expense A9-A10 10. Balance Sheet A11 11. Free Cash Flow A12-A15
1. Normalized Results (Consolidated) A1 (Baht in millions unless otherwise indicated) 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Revenue 16,346 15,432 15,198 914 +5.9% 1,148 +7.6% 62,474 61,265 1,209 +2.0% Revenues from providing services 15,330 14,801 14,942 528 +3.6% 388 +2.6% 59,671 60,094 (424) -0.7% - Interconnection revenue 1,718 1,727 1,879 (9) -0.5% (161) -8.6% 7,066 8,173 (1,107) -13.5% - Revenue from service exclude IC 13,612 13,074 13,063 537 +4.1% 549 +4.2% 52,605 51,921 683 +1.3% Revenues from product sales 1,017 630 256 386 +61.2% 761 +297.1% 2,804 1,171 1,633 +139.4% Cost of providing services 10,348 10,005 10,262 343 +3.4% 86 +0.8% 39,661 41,229 (1,568) -3.8% Regulatory costs 1,977 1,827 1,800 150 +8.2% 177 +9.8% 7,408 7,138 271 +3.8% Network operating expenses 5,891 5,768 5,882 123 +2.1% 9 +0.1% 22,652 24,199 (1,547) -6.4% - Interconnection charge 1,680 1,748 2,007 (68) -3.9% (327) -16.3% 7,098 9,018 (1,920) -21.3% - Network operating expenses exclude IC 4,211 4,020 3,875 191 +4.7% 335 +8.7% 15,554 15,181 373 +2.5% Depreciation and amortization 2,481 2,410 2,580 70 +2.9% (99) -3.9% 9,600 9,893 (292) -3.0% Cost of sales 895 543 223 351 +64.7% 671 +300.5% 2,538 1,175 1,363 +116.1% Selling and administrative expenses 3,267 2,793 3,051 475 +17.0% 217 +7.1% 11,524 11,477 46 +0.4% Depreciation and amortization 299 308 334 (10) -3.2% (35) -10.6% 1,230 1,238 (8) -0.7% Others S&A 2,969 2,484 2,717 485 +19.5% 252 +9.3% 10,293 10,239 54 +0.5% Total operarting expenses 14,510 13,341 13,536 1,169 +8.8% 974 +7.2% 53,722 53,881 (159) -0.3% EBITDA 4,615 4,810 4,575 (194) -4.0% 40 +0.9% 19,582 18,515 1,067 +5.8% Depreciation & amortization (2,779) (2,719) (2,914) 60 +2.2% (135) -4.6% (10,830) (11,131) (301) -2.7% Operating profit 1,836 2,091 1,661 (254) -12.2% 175 +10.5% 8,752 7,384 1,368 +18.5% Interest expense - net (1,663) (1,524) (1,782) 139 +9.1% (119) -6.7% (6,793) (6,833) (40) -0.6% Other financial fee (138) (175) (118) (37) -21.3% 20 +17.3% (559) (488) 70 +14.4% Income tax (expense) revenue (80) (586) 440 (506) -86.4% 520 NM (1,934) (978) 956 +97.8% - Current tax (144) (166) (88) (21) -12.9% 56 +63.4% (905) (795) 110 +13.8% - Deferred income tax 65 (420) 529 (485) NM (464) -87.8% (1,030) (183) 847 +462.5% Income from continuing operations (44) (195) 203 150 +77.3% (247) NM (534) (915) 381 +41.6% Share of results in subsidiaries and associates 3 1 (7) 2 +253.8% 10 NM (1) (10) (9) -92.4% Minority interest (9) (24) 387 15 +61.1% (397) NM 16 1,030 (1,013) -98.4% Net income (loss) from continuing operations including share of results in subsidiaries (50) (218) 583 168 +76.9% (634) NM (518) 105 (623) NM NIOGO excl. deferred income tax (115) 202 55 (317) NM (170) NM 511 288 223 +77.6% Non recurring items 86 317 (1,776) (231) -72.9% 1,862 NM 1,746 (2,460) 4,206 NM Foreign exchange gain (loss) 118 236 (1,792) (118) -49.9% 1,910 NM 1,585 (2,607) 4,192 NM Other (expenses) income (33) 81 16 (113) NM (48) NM 161 147 14 +9.6% Net profit (loss) to shareholders of the parent 35 99 (1,193) (63) -64.2% 1,228 NM 1,228 (2,355) 3,583 NM Minority interest 9 24 (387) (15) -61.1% 397 NM (16) (1,030) 1,013 +98.4% Net profit (loss) for the period 45 123 (1,581) (78) -63.6% 1,625 NM 1,211 (3,385) 4,596 NM EBITDA margin (on gross IC) 28.2% 31.2% 30.1% -293 bps -187 bps 31.3% 30.2% +112 bps EBITDA margin (on net IC) 31.6% 35.1% 34.4% -354 bps -280 bps 35.3% 34.9% +47 bps
2. Normalized TrueOnline Results A2 (Baht in millions unless otherwise indicated) 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Revenue 7,023 6,614 6,960 410 +6.2% 63 +0.9% 26,927 26,729 198 +0.7% Revenues from providing services 6,877 6,451 6,777 426 +6.6% 100 +1.5% 26,387 25,989 398 +1.5% Revenues from product sales 146 162 183 (17) -10.2% (37) -20.2% 540 740 (200) -27.1% Cost of providing services 4,531 4,173 4,135 358 +8.6% 396 +9.6% 16,712 15,302 1,410 +9.2% Regulatory costs 540 444 428 96 +21.7% 112 +26.0% 1,899 1,814 85 +4.7% Network operating expenses 2,611 2,377 2,469 233 +9.8% 142 +5.7% 9,499 8,854 645 +7.3% Depreciation and amortization 1,380 1,352 1,238 28 +2.1% 142 +11.5% 5,313 4,633 680 +14.7% Cost of sales 124 140 205 (16) -11.4% (81) -39.3% 459 711 (252) -35.5% Selling and administrative expenses 1,764 1,321 1,549 443 +33.5% 216 +13.9% 5,737 5,643 94 +1.7% Depreciation and amortization 112 118 153 (7) -5.6% (41) -26.8% 471 487 (17) -3.4% Others S&A 1,653 1,203 1,396 449 +37.4% 256 +18.4% 5,266 5,155 111 +2.1% Total operarting expenses 6,420 5,635 5,889 785 +13.9% 531 +9.0% 22,907 21,655 1,252 +5.8% EBITDA 2,096 2,449 2,462 (353) -14.4% (366) -14.9% 9,804 10,195 (391) -3.8% Depreciation & amortization (1,492) (1,471) (1,391) 22 +1.5% 102 +7.3% (5,784) (5,121) 663 +12.9% Operating profit 604 978 1,071 (375) -38.3% (468) -43.7% 4,020 5,074 (1,054) -20.8% Interest expense - net (817) (689) (882) 128 +18.5% (65) -7.3% (3,092) (3,384) (291) -8.6% Other financial fee (92) (137) (82) (45) -32.7% 10 +12.1% (404) (333) 71 +21.4% Income tax (expense) revenue 210 (245) 554 (455) NM 345 +62.1% (553) (133) 420 +314.8% - Current tax (46) (56) (37) (9) -16.9% 10 +27.0% (408) (335) 73 +21.7% - Deferred income tax 256 (189) 591 (445) NM 335 +56.6% (146) 202 347 NM Income from continuing operations (96) (92) 662 (3) -3.5% (758) NM (30) 1,224 (1,254) NM Share of results in subsidiaries and associates 3 1 (4) 1 +87.3% 7 NM 1 (13) 14 NM Minority interest (9) (20) (5) 12 +58.2% (3) -56.7% (72) (9) (63) -674.5% Net income (loss) from continuing operations including share of results in subsidiaries (102) (111) 652 10 +8.8% (754) NM (101) 1,201 (1,303) NM NIOGO excl. deferred income tax (358) 77 61 (435) NM (419) NM 45 1,000 (955) -95.5% Non recurring items 107 1,517 (838) (1,409) -92.9% 945 NM 2,221 1,375 845 +61.5% Foreign exchange gain (loss) 133 (168) (833) 301 NM 967 NM 448 (1,251) 1,698 NM Other (expenses) income (26) 1,684 (4) (1,710) NM (21) -481.8% 1,773 2,626 (853) -32.5% Net profit (loss) to shareholders of the parent 6 1,405 (186) (1,399) -99.6% 191 NM 2,120 2,577 (457) -17.7% Minority interest 9 20 5 (12) -58.2% 3 +56.7% 72 9 63 +674.5% Net profit (loss) for the period 14 1,426 (180) (1,411) -99.0% 194 NM 2,192 2,586 (394) -15.3% EBITDA margin 29.8% 37.0% 35.4% -719 bps -553 bps 36.4% 38.1% -173 bps
3. Normalized TrueMove Results A3 (Baht in millions unless otherwise indicated) 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Revenue 8,807 8,143 7,711 663 +8.1% 1,096 +14.2% 33,173 31,577 1,596 +5.1% Revenues from providing services 7,884 7,610 7,621 274 +3.6% 263 +3.5% 30,641 30,969 (329) -1.1% - Interconnection revenue 1,718 1,727 1,879 (9) -0.5% (161) -8.6% 7,066 8,173 (1,107) -13.5% - Revenue from service exclude IC 6,166 5,883 5,741 283 +4.8% 424 +7.4% 23,575 22,796 778 +3.4% Revenues from product sales 923 534 90 389 +72.9% 832 +921.5% 2,532 608 1,924 +316.6% Cost of providing services 5,375 5,290 5,921 85 +1.6% (546) -9.2% 21,513 24,330 (2,818) -11.6% Regulatory costs 1,309 1,233 1,243 76 +6.2% 66 +5.3% 4,970 4,831 139 +2.9% Network operating expenses 3,134 3,167 3,504 (33) -1.0% (370) -10.6% 12,918 14,898 (1,980) -13.3% - Interconnection charge 1,680 1,748 2,007 (68) -3.9% (327) -16.3% 7,098 9,018 (1,920) -21.3% - Network operating expenses exclude IC 1,453 1,419 1,497 35 +2.4% (43) -2.9% 5,820 5,880 (60) -1.0% Depreciation and amortization 932 890 1,174 43 +4.8% (242) -20.6% 3,624 4,601 (977) -21.2% Cost of sales 814 467 112 347 +74.2% 701 +623.3% 2,249 569 1,681 +295.5% Selling and administrative expenses 1,725 1,549 1,614 176 +11.4% 111 +6.9% 6,290 6,077 212 +3.5% Depreciation and amortization 115 120 115 (6) -4.6% (0) -0.2% 481 489 (8) -1.7% Others S&A 1,611 1,429 1,499 182 +12.7% 111 +7.4% 5,809 5,588 220 +3.9% Total operarting expenses 7,914 7,306 7,647 608 +8.3% 267 +3.5% 30,052 30,977 (925) -3.0% EBITDA 1,940 1,848 1,352 92 +5.0% 587 +43.4% 7,226 5,691 1,535 +27.0% Depreciation & amortization (1,047) (1,010) (1,289) 37 +3.7% (242) -18.8% (4,105) (5,090) (985) -19.4% Operating profit 893 838 63 55 +6.5% 829 +1306.2% 3,121 601 2,521 +419.6% Interest expense - net (810) (812) (871) (2) -0.2% (61) -7.0% (3,598) (3,336) 262 +7.8% Other financial fee (44) (37) (34) 7 +20.4% 10 +30.7% (147) (148) (1) -0.6% Income tax (expense) revenue (182) (213) (72) (31) -14.3% 110 +152.1% (787) (361) 426 +118.1% - Current tax - - - - NM - NM - (0) (0) -100.0% - Deferred income tax (182) (213) (72) (31) -14.3% 110 +152.1% (787) (361) 426 +118.1% Income from continuing operations (144) (223) (914) 79 +35.5% 769 +84.2% (1,411) (3,244) 1,833 +56.5% Share of results in subsidiaries and associates - - - - NM - NM - - - NM Minority interest - - - - NM - NM 0 0 0 +20.0% Net income (loss) from continuing operations including share of results in subsidiaries (144) (223) (914) 79 +35.5% 769 +84.2% (1,411) (3,244) 1,833 +56.5% NIOGO excl. deferred income tax 38 (11) (841) 49 NM 879 NM (624) (2,883) 2,260 +78.4% Non recurring items 14 333 (701) (319) -95.7% 716 NM 945 (881) 1,826 NM Foreign exchange gain (loss) 12 321 (787) (310) -96.3% 799 NM 930 (1,071) 2,001 NM Other (expenses) income 3 12 85 (9) -77.3% (83) -96.9% 15 190 (175) -92.2% Net profit (loss) to shareholders of the parent (130) 110 (1,615) (239) NM 1,485 +92.0% (466) (4,125) 3,659 +88.7% Minority interest - - - - NM - NM (0) (0) (0) +20.0% Net profit (loss) for the period (130) 110 (1,615) (239) NM 1,485 +92.0% (466) (4,125) 3,659 +88.7% EBITDA margin (on gross IC) 22.0% 22.7% 17.5% -67 bps 449 bps 21.8% 18.0% 376 bps EBITDA margin (on net IC) 27.4% 28.8% 23.2% -143 bps 417 bps 27.7% 24.3% 336 bps
4. Normalized TrueVisions Results A4 (Baht in millions unless otherwise indicated) 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Revenue 2,566 2,392 2,497 174 +7.3% 68 +2.7% 9,725 10,227 (502) -4.9% Revenues from providing services 2,518 2,374 2,392 145 +6.1% 127 +5.3% 9,533 9,431 102 +1.1% Revenues from product sales 47 18 106 29 +161.9% (58) -55.2% 191 796 (605) -76.0% Cost of providing services 1,861 1,753 1,675 108 +6.2% 186 +11.1% 6,615 6,584 31 +0.5% Regulatory costs 129 146 128 (17) -11.6% 1 +0.8% 536 495 41 +8.3% Network operating expenses 1,505 1,384 1,330 121 +8.8% 175 +13.2% 5,201 5,257 (57) -1.1% Depreciation and amortization 227 223 217 4 +1.8% 10 +4.6% 878 831 47 +5.6% Cost of sales 40 15 84 25 +166.8% (44) -52.7% 152 654 (502) -76.8% Selling and administrative expenses 380 338 335 42 +12.3% 45 +13.5% 1,329 1,282 47 +3.7% Depreciation and amortization 29 29 30 0 +1.3% (1) -4.5% 116 128 (12) -9.6% Others S&A 351 309 304 41 +13.3% 46 +15.3% 1,214 1,154 60 +5.2% Total operarting expenses 2,280 2,106 2,093 175 +8.3% 187 +8.9% 8,096 8,520 (424) -5.0% EBITDA 541 537 651 4 +0.7% (110) -16.9% 2,622 2,666 (44) -1.7% Depreciation & amortization (255) (251) (247) 4 +1.7% 9 +3.5% (994) (959) 35 +3.6% Operating profit 285 286 404 (1) -0.3% (119) -29.4% 1,628 1,707 (79) -4.6% Interest expense - net (36) (23) (29) 13 +54.6% 7 +23.9% (103) (113) (10) -9.0% Other financial fee (2) (2) (2) 0 +0.0% 0 +0.3% (7) (7) 0 +0.0% Income tax (expense) revenue (92) (113) (27) (21) -18.8% 65 +245.3% (534) (424) 110 +26.0% - Current tax (98) (110) (52) (12) -10.9% 46 +89.2% (497) (460) 37 +8.1% - Deferred income tax 6 (4) 25 (9) NM 19 +77.3% (37) 36 73 NM Income from continuing operations 156 148 347 8 +5.3% (191) -55.1% 984 1,163 (179) -15.4% Share of results in subsidiaries and associates 1 (0) (2) 1 NM 3 NM (2) 3 (5) NM Minority interest 0 0 (0) (0) -67.7% 0 NM 0 0 0 +53.2% Net income (loss) from continuing operations including share of results in subsidiaries 156 147 344 9 +6.2% (188) -54.6% 983 1,166 (183) -15.7% NIOGO excl. deferred income tax 151 151 319 (0) -0.2% (169) -52.8% 1,020 1,130 (110) -9.7% Non recurring items (30) (7) (192) (23) -336.6% 161 +84.2% 111 (308) 419 NM Foreign exchange gain (loss) (27) 83 (172) (110) NM 145 +84.4% 207 (285) 493 NM Other (expenses) income (3) (90) (20) 86 +96.2% 16 +82.6% (96) (23) (74) -328.1% Net profit (loss) to shareholders of the parent 126 140 153 (14) -10.1% (27) -17.4% 1,094 858 235 +27.4% Minority interest (0) (0) 0 0 +67.7% (0) NM (0) (0) (0) +53.2% Net profit (loss) for the period 126 140 153 (14) -10.1% (27) -17.4% 1,094 858 235 +27.4% EBITDA margin 21.1% 22.5% 26.1% -138 bps -499 bps 27.0% 26.1% 89 bps
5. Normalized 4Q 2009 Results (All Businesses) A5 (Baht in millions unless otherwise indicated) Pay TV Wireless Wireline Elim Consolidate Revenues Revenues from providing services 2,518 7,884 6,877 (1,950) 15,330 Revenues from product sales 47 923 146 (99) 1,017 Total revenues 2,566 8,807 7,023 (2,049) 16,346 Cost of providing services 1,861 5,375 4,531 (1,419) 10,348 Regulatory costs 129 1,309 540 (2) 1,977 Network operating expenses 1,505 3,134 2,611 (1,359) 5,891 Depreciation and amortization 227 932 1,380 (59) 2,481 Cost of sales 40 814 124 (83) 895 Selling and administrative expenses 380 1,725 1,764 (602) 3,267 Depreciation and amortization 29 115 112 43 299 Others 351 1,611 1,653 (645) 2,969 Total operating expenses 2,280 7,914 6,420 (2,104) 14,510 EBITDA 541 1,940 2,096 39 4,615 Total depreciation & amortization (255) (1,047) (1,492) 16 (2,779) Operating profit 285 893 604 55 1,836 Interest expense - net (36) (810) (817) - (1,663) Other financial fees (2) (44) (92) - (138) Income tax (expense) revenue (92) (182) 210 (15) (80) - Current tax (98) - (46) - (144) - Deferred income tax 6 (182) 256 (15) 65 Income from continuing operations 156 (144) (96) 40 (44) Share of results in subsidiaries and associates 1-3 - 3 (Income) loss attributable to minority interest 0 - (9) (1) (9) Net income (loss) from continuing operations including share of results in subsidiaries 156 (144) (102) 39 (50) NIOGO excl. deferred income tax 151 38 (358) 54 (115) Non recurring items (30) 14 107 (6) 86 Foreign exchange gain (loss) (27) 12 133-118 Other (expenses) income (3) 3 (26) (6) (33) Net profit (loss) to shareholders of the parent 126 (130) 6 33 35 Minority interest (0) - 9 1 9 Net profit (loss) for the period 126 (130) 14 34 45 EBITDA margin 21.1% 22.0% 29.8% 28.2%
6. Normalized FY 2009 Results (All Businesses) A6 (Baht in millions unless otherwise indicated) Pay TV Wireless Wireline Elim Consolidate Revenues Revenues from providing services 9,533 30,641 26,387 (6,890) 59,671 Revenues from product sales 191 2,532 540 (460) 2,804 Total revenues 9,725 33,173 26,927 (7,350) 62,474 Cost of providing services 6,615 21,513 16,712 (5,179) 39,661 Regulatory costs 536 4,970 1,899 2 7,408 Network operating expenses 5,201 12,918 9,499 (4,966) 22,652 Depreciation and amortization 878 3,624 5,313 (215) 9,600 Cost of sales 152 2,249 459 (322) 2,538 Selling and administrative expenses 1,329 6,290 5,737 (1,832) 11,524 Depreciation and amortization 116 481 471 163 1,230 Others 1,214 5,809 5,266 (1,995) 10,293 Total operating expenses 8,096 30,052 22,907 (7,333) 53,722 EBITDA 2,622 7,226 9,804 (70) 19,582 Total depreciation & amortization (994) (4,105) (5,784) 53 (10,830) Operating profit 1,628 3,121 4,020 (17) 8,752 Interest expense - net (103) (3,598) (3,092) - (6,793) Other financial fees (7) (147) (404) - (559) Income tax (expense) revenue (534) (787) (553) (60) (1,934) - Current tax (497) - (408) - (905) - Deferred income tax (37) (787) (146) (60) (1,030) Income from continuing operations 984 (1,411) (30) (77) (534) Share of results in subsidiaries and associates (2) - 1 - (1) (Income) loss attributable to minority interest 0 0 (72) 88 16 Net income (loss) from continuing operations including share of results in subsidiaries 983 (1,411) (101) 11 (518) NIOGO excl. deferred income tax 1,020 (624) 45 71 511 Non recurring items 111 945 2,221 (1,532) 1,746 Foreign exchange gain (loss) 207 930 448-1,585 Other (expenses) income (96) 15 1,773 (1,532) 161 Net profit (loss) to shareholders of the parent 1,094 (466) 2,120 (1,521) 1,228 Minority interest (0) (0) 72 (89) (16) Net profit (loss) for the period 1,094 (466) 2,192 (1,610) 1,211 EBITDA margin 27.0% 21.8% 36.4% 31.3%
7. Consolidated Revenue Profile (Before Eliminations) A7 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % TrueVisions 2,566 2,392 2,497 174 +7.3% 68 +2.7% 9,725 10,227 (502) -4.9% - Service revenue 2,518 2,374 2,392 145 +6.1% 127 +5.3% 9,533 9,431 102 +1.1% - Product sales 47 18 106 29 +161.9% (58) -55.2% 191 796 (605) -76.0% Intersegment elimination (65) (120) 2 54 +45.2% (68) -2844.9% (346) (832) 485 +58.3% TrueVisions after elimination 2,500 2,272 2,500 228 +10.0% 1 +0.0% 9,378 9,396 (17) -0.2% TrueMove 8,807 8,143 7,711 663 +8.1% 1,096 +14.2% 33,173 31,577 1,596 +5.1% - Service revenue 7,884 7,610 7,621 274 +3.6% 263 +3.5% 30,641 30,969 (329) -1.1% - Product sales 923 534 90 389 +72.9% 832 +921.5% 2,532 608 1,924 +316.6% Intersegment elimination (586) (427) 47 (159) -37.2% (633) -1337.8% (1,861) (1,353) (507) -37.5% True Move after elimination 8,221 7,716 7,758 504 +6.5% 462 +6.0% 31,312 30,224 1,088 +3.6% TrueOnline 7,023 6,614 6,960 410 +6.2% 63 +0.9% 26,927 26,729 198 +0.7% Internet, Broadband and Data network s 2,637 2,565 2,551 73 +2.8% 86 +3.4% 10,397 9,944 454 +4.6% - Data network service 852 818 1,007 34 +4.1% (155) -15.4% 3,493 3,660 (168) -4.6% - Business data service 628 595 784 33 +5.5% (156) -19.9% 2,600 2,763 (163) -5.9% - Business data service for TMV 218 208 315 10 +4.9% (96) -30.6% 868 1,042 (174) -16.7% - Business data service for Non-TM 409 387 469 23 +5.9% (60) -12.8% 1,732 1,721 11 +0.6% - Multimedia 224 223 223 1 +0.4% 1 +0.4% 893 897 (5) -0.5% - Internet & Broadband 1,786 1,747 1,544 39 +2.2% 242 +15.7% 6,904 6,283 621 +9.9% - Broadband 1,432 1,390 1,274 42 +3.0% 158 +12.4% 5,495 4,932 564 +11.4% - Dial up Internet & Other (excl. TIG) 354 357 270 (3) -0.8% 84 +31.1% 1,409 1,352 58 +4.3% New revenue stream, Convergence & ot 2,176 1,810 1,822 366 +20.2% 354 +19.4% 7,426 5,866 1,560 +26.6% - New revenue stream 273 258 314 16 +6.0% (40) -12.8% 1,024 720 304 +42.3% - International call 185 171 200 14 +8.2% (15) -7.7% 704 568 136 +23.9% - Others 88 87 113 1 +1.7% (25) -21.9% 320 151 169 +111.5% - Convergence & others 1,903 1,552 1,509 351 +22.6% 394 +26.1% 6,402 5,147 1,255 +24.4% Traditional voice 2,064 2,077 2,404 (13) -0.6% (340) -14.2% 8,564 10,179 (1,615) -15.9% - Fixed-line & VAS (excl. IDD & VOIP) 1,869 1,866 2,139 2 +0.1% (271) -12.7% 7,703 8,936 (1,234) -13.8% - Public phone 115 123 145 (8) -6.3% (30) -20.9% 493 650 (157) -24.2% - PCT 80 88 119 (8) -8.6% (39) -32.8% 369 593 (224) -37.8% TrueOnline service revenue 6,877 6,451 6,777 426 +6.6% 100 +1.5% 26,387 25,989 398 +1.5% TrueOnline product sales 146 162 183 (17) -10.2% (37) -20.2% 540 740 (200) -27.1% Intersegment elimination (1,398) (1,170) (2,020) (227) -19.4% 622 +30.8% (5,143) (5,083) (60) -1.2% TrueOnline after elimination 5,625 5,443 4,940 182 +3.3% 685 +13.9% 21,784 21,646 138 +0.6% Normalized consolidated revenues 18,395 17,149 17,168 1,247 +7.3% 1,227 +7.1% 69,824 68,533 1,291 +1.9% Total intersegment elimination (2,049) (1,717) (1,970) (332) -19.4% (79) -4.0% (7,350) (7,268) (82) -1.1% Normalized consolidated revenues-net 16,346 15,432 15,198 914 +5.9% 1,148 +7.6% 62,474 61,265 1,209 +2.0%
8. Consolidated Revenue Profile (After Eliminations) A8 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % TrueVisions 2,500 2,272 2,500 228 +10.0% 1 +0.0% 9,378 9,396 (17) -0.2% - Service revenue 2,476 2,267 2,467 209 +9.2% 9 +0.4% 9,305 9,273 32 +0.3% - Product sales 25 5 33 19 +358.8% (8) -25.2% 73 122 (49) -40.1% True Move 8,221 7,716 7,433 504 +6.5% 788 +10.6% 31,312 30,224 1,088 +3.6% - Service revenue 7,375 7,255 7,359 119 +1.6% 15 +0.2% 29,121 29,825 (704) -2.4% - Product sales 846 461 74 385 +83.4% 772 +1043.2% 2,191 399 1,792 +449.0% TrueOnline 5,625 5,443 5,265 182 +3.3% 360 +6.8% 21,784 21,646 138 +0.6% Internet, Broadband and Data network 2,209 2,163 1,993 46 +2.1% 216 +10.8% 8,598 7,923 674 +8.5% - Data network service 445 457 468 (12) -2.6% (24) -5.0% 1,804 1,752 52 +3.0% - Business data service 429 443 452 (14) -3.1% (23) -5.2% 1,744 1,690 54 +3.2% - Multimedia 16 14 16 2 +11.1% (0) -1.8% 60 62 (1) -2.4% - Internet & Broadband 1,765 1,706 1,525 58 +3.4% 239 +15.7% 6,793 6,171 622 +10.1% - Broadband 1,418 1,360 1,255 57 +4.2% 162 +12.9% 5,412 4,847 565 +11.7% - Dial up Internet & Other (excl. TIG) 347 346 270 1 +0.3% 77 +28.6% 1,381 1,325 57 +4.3% New revenue stream, Convergence & ot 1,207 1,040 719 167 +16.1% 488 +67.9% 4,086 2,894 1,192 +41.2% - New revenue stream 194 159 113 35 +22.3% 82 +72.6% 677 519 158 +30.5% - International call 108 77 4 31 +40.0% 104 +2592.9% 387 372 15 +4.0% - Others 86 82 109 4 +5.5% (23) -20.7% 290 147 144 +98.0% - Convergence & others 1,012 881 606 132 +14.9% 406 +67.0% 3,409 2,375 1,034 +43.5% Traditional voice 2,064 2,077 2,404 (13) -0.6% (340) -14.2% 8,561 10,179 (1,618) -15.9% - Fixed-line & VAS (excl. IDD & VOIP) 1,869 1,866 2,140 2 +0.1% (271) -12.7% 7,700 8,936 (1,237) -13.8% - Public phone 115 123 145 (8) -6.3% (30) -20.9% 493 650 (157) -24.2% - PCT 80 88 119 (8) -8.6% (39) -32.8% 369 593 (224) -37.8% TrueOnline service revenue 5,480 5,279 5,116 200 +3.8% 364 +7.1% 21,245 20,996 249 +1.2% TrueOnline product sales 146 164 149 (18) -11.0% (3) -2.2% 539 650 (110) -17.0% Normalized consolidated revenues 16,346 15,432 15,198 914 +5.9% 1,148 +7.6% 62,474 61,265 1,209 +2.0%
9. Consolidated Operating Expense A9 Consolidated % Change % Change 4Q2009 3Q2009 4Q2008 4Q2009/ 4Q2009/ FY2009 FY2008 FY2009/ (Baht in millions unless otherwise indicated) 3Q2009 4Q2008 FY2008 Revenue sharing 1,977 1,827 1,800 8.2 9.8 7,408 7,138 3.8 Cost of sales 895 543 223 64.7 300.5 2,538 1,175 116.1 Interconnection charges 1,680 1,748 2,007 (3.9) (16.3) 7,098 9,018 (21.3) Core operating expenses (Core OPEX) 7,179 6,504 6,592 10.4 8.9 25,847 25,420 1.7 Total cash operating expenses 11,731 10,622 10,622 10.4 10.4 42,892 42,750 0.3 Depreciation and amortization 2,779 2,719 2,914 2.2 (4.6) 10,830 11,131 (2.7) Total operating expenses 14,510 13,341 13,536 8.8 7.2 53,722 53,881 (0.3) Core Opex as a % of total revenue 43.9% 42.1% 43.4% 41.4% 41.5% TrueMove % Change % Change 4Q2009 3Q2009 4Q2008 4Q2009/ 4Q2009/ FY2009 FY2008 FY2009/ (Baht in millions unless otherwise indicated) 3Q2009 4Q2008 FY2008 Revenue sharing 1,309 1,233 1,243 6.2 5.3 4,970 4,831 2.9 Cost of sales 814 467 112 74.2 623.3 2,249 569 295.5 Interconnection charges 1,680 1,748 2,007 (3.9) (16.3) 7,098 9,018 (21.3) Core operating expenses (Core OPEX) 3,064 2,847 2,996 7.6 2.3 11,629 11,468 1.4 Total cash operating expenses 6,867 6,296 6,358 9.1 8.0 25,947 25,886 0.2 Depreciation and amortization 1,047 1,010 1,289 3.7 (18.8) 4,105 5,090 (19.4) Total operating expenses 7,914 7,306 7,647 8.3 3.5 30,052 30,977 (3.0) Core Opex as a % of total revenue 34.8% 35.0% 38.9% 35.1% 36.3%
9. Consolidated Operating Expense (Cont d) A10 TrueOnline % Change % Change 4Q2009 3Q2009 4Q2008 4Q2009/ 4Q2009/ FY2009 FY2008 FY2009/ (Baht in millions unless otherwise indicated) 3Q2009 4Q2008 FY2008 Revenue sharing 540 444 428 21.7 26.0 1,899 1,814 4.7 Cost of sales 124 140 205 (11.4) (39.3) 459 711 (35.5) Core operating expenses (Core OPEX) 4,263 3,581 3,865 19.1 10.3 14,765 14,010 5.4 Total cash operating expenses 4,927 4,164 4,498 18.3 9.5 17,123 16,535 3.6 Depreciation and amortization 1,492 1,471 1,391 1.5 7.3 5,784 5,121 12.9 Total operating expenses 6,420 5,635 5,889 13.9 9.0 22,907 21,655 5.8 Core Opex as a % of total revenue 60.7% 54.1% 55.5% 54.8% 52.4% TrueVisions % Change % Change 4Q2009 3Q2009 4Q2008 4Q2009/ 4Q2009/ FY2009 FY2008 FY2009/ (Baht in millions unless otherwise indicated) 3Q2009 4Q2008 FY2008 Revenue sharing 129 146 128 (11.6) 0.8 536 495 8.3 Cost of sales 40 15 84 166.8 (52.7) 152 654 (76.8) Core operating expenses (Core OPEX) 1,856 1,694 1,634 9.6 13.6 6,414 6,412 0.0 Total cash operating expenses 2,025 1,855 1,846 9.2 9.7 7,103 7,561 (6.1) Depreciation and amortization 255 251 247 1.7 3.5 994 959 3.6 Total operating expenses 2,280 2,106 2,093 8.3 8.9 8,096 8,520 (5.0) Core Opex as a % of total revenue 72.3% 70.8% 65.4% 66.0% 62.7%
10. Balance Sheet A11 Consolidated Company THB millions 31 Dec 09 31 Dec 08 % chg. 31 Dec 09 31 Dec 08 % chg. ASSETS Current assets Cash and restricted cash 6,264 5,757 8.8% 1,099 1,189-7.6% Other current assets 14,293 14,575-1.9% 6,362 6,842-7.0% Non current assets Investments 399 403-1.1% 26,789 19,981 34.1% Property, plant & equipment 68,693 71,380-3.8% 14,126 15,921-11.3% Goodwill 12,428 12,381 0.4% - - NM Intangible assets, net 5,340 3,557 50.2% 630 796-20.8% Deferred income tax assets 8,224 9,248-11.1% 5,630 6,224-9.5% Other assets 780 723 8.0% 405 386 5.1% TOTAL ASSETS 116,421 118,024-1.4% 55,043 51,339 7.2% LIABILITIES & EQUITY LIABILITIES 105,779 111,404-5.0% 39,489 43,195-8.6% Current liabilities 31,422 33,265-5.5% 7,987 10,082-20.8% Non-current liabilities 74,356 78,139-4.8% 31,502 33,113-4.9% EQUITY 10,642 6,620 60.8% 15,554 8,144 91.0% TOTAL LIABILITIES & EQUITY 116,421 118,024-1.4% 55,043 51,339 7.2%
11. Free Cash Flow - Consolidated A12 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Cash flows from operating activities: Cash received from operations (before working capital) 5,012 5,265 5,344 (253) -4.8% (332) -6.2% 21,545 21,031 514 +2.4% Changes in operating working capital (1,962) (831) (1,687) (1,131) -136.0% (275) -16.3% (3,974) (1,024) (2,950) -288.0% - Trade accounts receivable (314) (125) 42 (188) -150.3% (355) NM (1,348) 3,799 (5,146) NM - Short term investment - trading securities 103 (35) 505 138 NM (401) -79.5% 121 72 49 +68.3% - Inventories (209) (137) (665) (72) -52.3% 457 +68.6% (735) (1,622) 886 +54.7% - Other current assets 56 390 896 (334) -85.6% (840) -93.7% 541 995 (454) -45.6% - Other non-current assets (84) 13 (33) (97) NM (51) -153.7% (83) (36) (47) -130.1% - Trade accounts payable (194) (648) 1,606 453 +70.0% (1,800) NM (951) (3,063) 2,112 +68.9% - Investments in film and program rights (130) (632) (317) 502 +79.4% 187 +58.9% (1,387) (1,315) (72) -5.5% - Accrued expenses and other current liabilites (1,097) 438 (3,775) (1,535) NM 2,678 +71.0% 162 (253) 416 NM - Other non-current liabilities (94) (95) 55 1 +1.2% (149) NM (295) 399 (694) NM Cash received from operations 3,050 4,434 3,657 (1,384) -31.2% (607) -16.6% 17,570 20,007 (2,436) -12.2% Less: Interest paid (1,894) (1,043) (1,758) (851) -81.5% (136) -7.7% (6,334) (6,358) 24 +0.4% Income tax paid (389) (537) (308) 148 +27.6% (81) -26.3% (1,877) (1,886) 9 +0.5% Add: Interest received 20 22 66 (2) -9.1% (46) -70.0% 84 131 (47) -35.7% Cash flows from operation 787 2,876 1,657 (2,089) -72.6% (870) -52.5% 9,444 11,894 (2,450) -20.6% Capex (1,147) (1,571) (1,874) (424) -27.0% (727) -38.8% (5,289) (7,283) (1,994) -27.4% Free Cash Flow (360) 1,304 (217) (1,665) NM (143) -65.8% 4,155 4,611 (456) -9.9%
11. Free Cash Flow - TrueMove A13 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Cash flows from operating activities: Cash received from operations (before working capital) 1,969 1,975 477 (6) -0.3% 1,492 +313.0% 7,604 2,820 4,784 +169.6% Changes in operating working capital (2,289) 145 (1,900) (2,435) NM (390) -20.5% (1,764) 1,060 (2,824) NM - Trade accounts receivable 489 (498) (252) 988 NM 741 NM (320) 3,887 (4,207) NM - Due from related companies 18 (4) (79) 22 NM 98 NM (28) (87) 59 +67.6% - Inventories (753) (107) 53 (646) -603.0% (806) NM (627) 353 (980) NM - Other current assets (319) (42) (591) (277) -664.7% 272 +46.0% 34 (518) 552 NM - Other non-current assets (6) (10) 705 4 +42.8% (711) NM (34) 692 (726) NM - Trade accounts payable 908 760 922 148 +19.4% (14) -1.5% (192) (3,894) 3,701 +95.1% - Due to related companies 101 (34) 79 134 NM 22 +27.2% 18 16 2 +9.4% - Accrued expenses and other current liabilites (2,572) 223 (3,417) (2,795) NM 845 +24.7% (7) 310 (317) NM - Other non-current liabilities - - 721 - NM (721) -100.0% - 270 (270) -100.0% - Regulatory costs (11) 2 (19) (13) NM 8 +40.9% (26) 49 (75) NM - Deferred Income tax assets - - 51 - NM (51) -100.0% - 205 (205) -100.0% - Deferred Income tax liabitities - - 22 - NM (22) -100.0% - 156 (156) -100.0% - Liability under concession minimum payment (145) (145) (95) - +0.0% (50) -52.6% (580) (380) (200) -52.6% Cash received from operations (321) 2,120 (1,423) (2,441) NM 1,102 +77.5% 5,840 3,880 1,960 +50.5% Less: Interest paid (950) (432) - (518) -119.7% (950) NM (3,182) - (3,182) NM Income tax paid (69) (68) - (1) -2.0% (69) NM (328) - (328) NM Add: Interest received 9 7-2 +34.4% 9 NM 30-30 NM Withhoding income tax retund 402 - - 402 NM 402 NM 402-402 NM Cash flows from operation (929) 1,626 (1,423) (2,555) NM 494 +34.7% 2,762 3,880 (1,118) -28.8% Capex (508) (513) (908) (5) -1.0% (400) -44.0% (2,637) (4,232) (1,595) -37.7% Free Cash Flow (1,437) 1,113 (2,331) (2,550) NM 894 +38.4% 126 (352) 478 NM
11. Free Cash Flow - TrueVisions A14 4Q09 3Q09 4Q08 Change QoQ Change YoY 2009 2008 Change YoY Amt. % Amt. % Amt. % Cash flows from operating activities: Cash received from operations (before working capital) 674 235 457 440 +187.5% 217 +47.5% 2,184 2,070 114 +5.5% Changes in operating working capital 445 (435) 101 881 NM 345 +342.7% (335) (577) 242 +41.9% - Trade accounts receivable 15 (128) 42 142 NM (27) -65.0% (56) (5) (51) -1095.7% - Due from related companies (39) (94) 166 55 +58.4% (205) NM (114) (54) (60) -111.7% - Loans to from related company (interest (receive)/paid) - - (59) - NM 59 +100.0% - (252) 252 +100.0% - Inventories 22 1 (47) 21 +2284.7% 69 NM 67 (77) 145 NM - Other current assets 232 (57) 46 289 NM 186 +404.2% 159 7 152 +2152.0% - Other non-current assets (66) (4) (1) (62) -1433.1% (66) -7384.8% (61) (13) (49) -383.8% - Trade accounts payable 218 (467) 74 686 NM 144 +194.9% (207) 2 (210) NM - Due to related companies 28 (27) 27 55 NM 1 +3.4% (56) 138 (194) NM - Accrued expenses and other current liabilites 46 317 (95) (271) -85.4% 141 NM (58) (112) 54 +48.2% - Other non-current liabilities (11) 24 (53) (34) NM 42 +80.0% (8) (212) 203 +96.1% - Amortised deposit customer - - - - NM - NM - - - NM - DTA from forward contract - - - - NM - NM - - - NM Cash received from operations 1,120 (201) 558 1,321 NM 562 +100.7% 1,850 1,494 356 +23.8% Less: Interest paid - (0) - 0 +100.0% - NM (2) - (2) NM Income tax paid (171) - - (171) NM (171) NM (328) - (328) NM Add: Interest received - - - - NM - NM - - - NM Cash flows from operation 949 (201) 558 1,150 NM 391 +70.0% 1,520 1,494 26 +1.7% Capex (102) (56) (144) 47 +84.1% (41) -28.8% (232) (614) (382) -62.2% Free Cash Flow 846 (257) 414 1,103 NM 432 +104.3% 1,288 880 408 +46.4%