dtacQ3 2019

ticker symbol: DTAC

16 October 2019Alexandra Reich, CEO

Sensitivity: Open

2

Continue focusing on personalization and digitization

Never-stop network improvement

Q319 operational highlights

Service revenue excl. IC back to YoY growth of 0.6% (+2.3% QoQ)

Prepaid revenue growth QoQ for 2nd

consecutive quarter, with continuous postpaid revenue growth

Note: Figures are based on IAS 18

Sensitivity: Open

21.3 20.6 20.4

Q318 Q219 Q319

Total subs (mm)

Resilient business amidst competitive market, trending on our turnaround strategy

3

• Service revenues excl. IC back to YoY growth of 0.6% (+2.3% QoQ)

• Subscriber loss 217k, primarily due to seasonal and rotational churn

• Prepaid acquisition packs with unlimited anynet voice introduced

nationwide

• Unlimited data packs for prepaid came back in Sep in some regions

• Continued good signs in B2B

15.7 15.4 15.8

Q318 Q219 Q319

Service rev excl. IC (THB bn)

Note: Figures are based on IAS 18

+0.6%YoY

-4.1%YoY

Sensitivity: Open

Executing our strategy to win back customers

4

• Localized activities

• Expanding distribution footprint

• Retailer activation

DistributionProducts

• Personalized offers using analytics

• Increased gross adds momentum in prepaid with topping uptake and improved survival rate

• Postpaid portfolio simplification with dtac GO (the first to include international roaming in the main packs)

Sensitivity: Open

Continue focusing on personalization and digitization using mobile application

5

Q219 Q319

Mobile App Users +17.0% QoQ

Q219 Q319

Digital revenue +18.4% QoQ

Q219 Q319

% App installation in retailers +3pp QoQ

Q219 Q319

% of retailers performing sales

transaction on app +7pp QoQ

Sensitivity: Open

Continuous network improvement with preparation for the future

6

Network NPS Network complaints (daily avg)

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Jan-19 Mar-19 May-19 Jul-19 Sep-19

2.6x -51%

• Extensively use analytics model to assure value based rollout

• Now with 16.4k 4G-2300MHz BTS installed

• 5G test on 28GHz, download speeds were clocked in at over 1.8 Gbps

• To start rolling out 900 MHz in Q419 and prepare for 700 MHz

dtacQ3 2019

ticker symbol: DTAC

16 October 2019Dilip Pal, CFO

Sensitivity: Open

8

Service revenue excl. IC grew 2.3% QoQand 0.6% YoY

Net profit grew 6.2% QoQ with consistently strong OCF and solid

financial position

Sequential EBITDA improvement of 2.9%

2019 guidance maintained

Q319 financial highlights

Note: Figures are based on IAS 18

Sensitivity: Open

ARPU growth continued with growing data consumption

9

• Sub loss 217K

• Postpaid subs accounted for 31.3% of total sub base as of Q319

Subscribers (mm) ARPU (THB/sub/mth) Data usage (GB/sub/mth)

15.7 15.3 15.1 14.5 14.3 14.0

5.9 6.0 6.1 6.2 6.3 6.4

21.6 21.3 21.2 20.7 20.6 20.4

Q218 Q318 Q418 Q119 Q219 Q319

Prepaid Postpaid

246 244 242 242 253

261

255 253 251 251

262 271

Q218 Q318 Q418 Q119 Q219 Q319

ARPU excl. IC IC

• Healthy ARPU growth with sequential improvement in both prepaid & postpaid

• Based on TFRS 15, ARPU in Q319 was +3.6% QoQ and +5.5% YoY

• Strong growth in data usage

• Smartphone penetration 84.1%

• 9.0m subs on 2300MHz network

8.2 8.6 8.9 9.3 10.5 11.7

Q218 Q318 Q418 Q119 Q219 Q319

-4.1%

-1.0%

+6.8%

+3.5%

+34.9%

+10.5%

Note: Figures are based on IAS 18

Sensitivity: Open

Service revenue excl. IC back to YoY growth with Core service revenue +2.3% YoY

10

Service revenue excl. IC (THB bn) Total revenue (THB bn) TFRS15 impact (THB mm)

14.8 14.7 14.3 14.2 14.6 15.0

1.21.0

1.0 0.90.8

0.8

16.015.7

15.3 15.2 15.415.8

Q218 Q318 Q418 Q119 Q219 Q319

Core service revenue Others

+0.6%

+2.3%

+14.3%

+1.3%

16.6 16.2 15.8 15.7 15.9 16.3

2.01.3 2.2 1.9 1.8 1.5

0.20.4

1.2 2.1 2.5 2.718.8

18.019.2 19.6

20.3 20.5

Q218 Q318 Q418 Q119 Q219 Q319

Service rev Devices & SIM Other oper income

Revenue based on

IAS18Adjustment

Revenue based on

TFRS15

Service revenue

16,290 (209) 16,081

Device and SIM sale

1,535 202 1,737

• Core service revenue +2.8% QoQ and +2.3% YoY

• Increase in other operating income from higher revenue from CAT lease and TOT 2300 MHz

• Offset by lower handset sales

• Adoption of TFRS 15 resulted in slight reduction in total revenues

• Based on TFRS 15

• Service revenue excl. IC in Q319 +2.5% QoQand -0.7% YoY

• Core service revenue in Q319 +3.0% QoQand +0.9% YoY

• Total revenue in Q319 +1.3% QoQ and +14.3% YoY

Note: Figures are based on IAS 18

Sensitivity: Open

• Regulatory cost increased from higher revenue

• Network OPEX maintained at the same level as three quarters earlier

• Higher other cost of services mainly driven by TOT 2300 MHz network roaming cost

Higher cost of services mainly from TOT roaming cost

11

Cost of services (THB bn)* CoS as % of Service rev excl. IC

+50.6%

+3.5%

9.8% 9.5% 8.3%

4.4% 4.2% 4.3%

11.4% 11.3%

19.7% 20.0% 19.3% 19.3%

Q218 Q318 Q418 Q119 Q219 Q319

Regulatory costs Network opex

1.6 1.5 1.3 0.7 0.6 0.7

1.8 1.8 3.03.0 3.0 3.0

1.4 1.82.4 3.3 3.8 3.94.8 5.1

6.7 7.0 7.4 7.7

Q218 Q318 Q418 Q119 Q219 Q319

Regulatory Network Others

(THB mm) Q218 Q318 Q418 Q119 Q219 Q319 ∆ QoQ

CAT gross lease expenses** - 176 1,057 1,018 974 969 -5

CAT lease expenses**, net of revenue from lease agreements - 125 753 716 673 669 -4

TOT 2300MHz gross costs 864 1,328 1,943 2,875 3,360 3,537 +177

TOT costs, net of revenue from 2300MHz network rental 843 1,136 1,160 1,197 1,217 1,224 +7

Note: Figures are based on IAS 18* Excluding depreciation, amortization, and IC** Lease agreements signed with CAT at the end of the concession

Sensitivity: Open

SG&A increased slightly from higher activities but well under control

12

SG&A (THB bn)* SG&A as % of Total revenue

+0.1%

+4.2%

10.7% 10.6% 10.1% 10.3%9.3% 9.3%

5.7%6.5%

7.8%

5.9% 5.4% 5.7%

Q218 Q318 Q418 Q119 Q219 Q319

Gen admin S&M

1.1 1.2 1.5 1.2 1.1 1.20.3 0.3

0.30.3 0.3 0.3

2.0 1.91.9

2.0 1.9 1.9

3.4 3.43.8 3.5 3.3 3.4

Q218 Q318 Q418 Q119 Q219 Q319

S&M Bad debt Gen admin

• S&M expenses increased QoQ from higher sales activities

• Flattish development in Bad debt

• Based on TFRS 15

• SG&A in Q319 +4.0% QoQ and +0.5% YoY

• S&M expense in Q319 5.8% of total revenue

Note: Figures are based on IAS 18* Excluding depreciation, amortization, and CAT settlement in Q418

Sensitivity: Open

Continued sequential EBITDA improvement

13

EBITDA (THB bn) EBITDA margin (% of Total rev)*

-5.4%

+2.9%

40.4% 40.0%

27.4%31.2% 32.6% 33.1%

40.4% 40.6%

29.1%34.7% 37.1% 37.9%

Q218 Q318 Q418 Q119 Q219 Q319

Reported EBITDA % Normalized EBITDA %**

7.6 7.25.3 6.1 6.6 6.8

Q218 Q318 Q418 Q119 Q219 Q319

• EBITDA improve QoQ from higher core service revenue with higher ARPU

• Adoption of TFRS 15 had no material impact on EBITDA

• Based on TFRS 15, EBITDA in Q319 +3.2% QoQ and -5.7% YoY

Note: Figures are based on IAS 18* Reported and normalized EBITDA margin based on current accounting policy (TFRS 15) for 2019 is 33.0% and 37.8%, respectively** EBITDA margin based on total revenues excluding revenues from CAT lease agreements and TOT network rental in the denominator

Sensitivity: Open

Strong net profit and operating cash flow development

14

Net profit (THB bn) Capex (THB bn) Operating cash flow (THB bn)**

3.0

6.1 8.0

4.4 2.3 2.4

16.0%

34.2%44.1%

24.7%

13.0% 13.7%

Q218 Q318 Q418 Q119 Q219 Q319

Capex Capex %*

N/A

+6.2%

0.2

-0.9

-4.9

1.4 1.7 1.8

Q218 Q318 Q418 Q119 Q219 Q319

Note: Figures are based on IAS 18* Based on percentage of total revenues excluding revenues from CAT lease agreements and TOT network rental in the denominator** EBITDA minus CAPEX

4.6

1.1

(2.7)

1.8 4.3 4.4

24.4%

6.4%

-15.0%

10.0%

24.0% 24.3%

Q218 Q318 Q418 Q119 Q219 Q319

OCF OCF %*

• Net profit improved from better EBITDA

• Adoption of TFRS 15 had no material impact on net profit

• Based on TFRS 15, Net profit in Q319 +7.2% QoQ

• Slight increase in CAPEX QoQprimarily driven by network investment

• Consistently strong operating cash flow development due to higher EBITDA and slightly higher CAPEX

Sensitivity: Open

Solid financial position with well-spread debt repayment schedule

15

Net debt (THB bn) Financial ratios (x)

+118.2%

+1.1%

Note: Figures are based on IAS 18

17.7 21.032.9 34.2

45.3 45.8

Q218 Q318 Q418 Q119 Q219 Q319

0.6 0.8

1.5 1.4

1.8 1.9

0.6 0.7

1.2 1.3

1.8 1.8

Q218 Q318 Q418 Q119 Q219 Q319

Net debt to equity Net debt to EBITDA

Debt maturity profile (THB bn)

12.0

6.0

4.0

12.0

10.0

2.5 3.0 1.5 2.0

6.0

1.5

7.0

3.0 2.5

Loan Debenture

• Net debt level maintained QoQ • Net debt:EBITDA ratio maintained at 1.8x

• Total debt THB 51 bn, comprising THB 18 bn bank loan and THB 33 bn bond

• THB 9 bn out of THB 12 bn bank loan expiring in Q419 can be rolled over

Sensitivity: Open

2019 guidance maintained

16

Service revenue excl. IC*

EBITDA

CAPEX

Low single-digit decline

THB 24 – 25 bn

THB 13 – 15 bn

Previous guidance

Low single-digit decline

THB 24 – 25 bn

THB 13 – 15 bn

Current guidance

-3.0%

THB 19.5 bn

THB 9.1 bn

Q319 YTD

* Based on IAS 18 for both 2018 and 2019

Sensitivity: Open

Disclaimer

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.

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