Sensitivity: Open

Q2 2020

ticker symbol: DTAC

15 July 2020Sharad Merohtra, CEODilip Pal, CFO

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2

Peak impact from Covid-19

Accelerated digital transformation while keeping core focuses

Countrywide lock-down and #WFH as catalyst for a new normal

Business resilience and efficiency as critical driver for EBITDA growth in the

face of crisis

Operational highlights - Second Quarter 2020

Sensitivity: Open

Peak impact from COVID-19 amidst ongoing competition

3

Over month-long of ongoing

lockdown

Further revision of Economic growth

From -5% to -8% (BoT)

Full impact on revenue from tourist, roaming, and migrants

Re-opening in phases from mid-

May

Optimized spending across Thai mass segment

Lower transaction activities due to physical shops closure

Lower foot traffic level

1

2

3

Nationwide context Market situations

• More impact on prepaid than postpaid

• Prepaid competition remained intense with unlimited data packs offered in acquisition pack

• Participation with NBTC on subsidized 10 GB and free 100 minutes

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Connecting customer while supporting transition to a new normal

4

Nationwide lockdown

Adoption of #WFH policy

68%Increase in web

usage QoQIncrease in dtac app

usage QoQ

43%

New Normal

Connecting customer Supporting transition

B2C B2B

#bettertogether

Social distance

measures

Shift in

Network trafficfrom CBD to

residential zone

Stable Network Complaints

and Network NPS despite surge in usage and shift

in usage pattern

Surge in data usage from Jan – Jun 2020

44%

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dtac’s strive to thrive in the new normal

5

Accelerating digital transformation

Supporting people on the new journey

Increase in digital redemption

5x

Internally• 100% operation from home , powered by trust and productivity – a result of dtac’s long-term effort to empower people through a

healthy, collaborative, and inclusive culture • Kept improving our people through even more robust selection of online resources to support the digital journey

Externally• Relief initiatives for broader society

YoY increase

99%Insurance service in-app purchase

• Actively educated society and raised awareness on safe internet use, especially in time of change when cyber-attackers take advantage of fear and confusion

• Launched online learning platform to build children’s digital resilience, serving as key foundation to empower society through creation of healthy online culture

QoQ increase

34%

Prepaiddtac app MAU

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6

• Optimization for efficiency has always been our key focus

• Despite the crisis at its peak affecting revenues, dtac maintained the ability to manage profitability

• Our Q220 EBITDA growth 5.1% QoQ and 4.2% YoY

Business resilience and efficiency as critical driver for EBITDA growth

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Low-band Mid-band High-band

900 MHz• Obtained clarification on funding of filter installation• Equipment swap to take place immediately after CAT completes

filter installation

850 MHz• As a pre-caution, dtac has obtained approval on 850 MHz extension

for another 6 month after CAT completes filter installation, or until 31st December 2021 as the latest date

700 MHz• NBTC notified that the award will be delayed until 15th January 2021• dtac requested for an option for early award by region; confirmation

from NBTC is currently pending

2100 MHz

1800 MHz

2300 MHz

26 GHz

3500 MHz*Ongoing participating in the consultation process with the NBTC

Spectrum portfolio: key updates

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Network improvement plan

Low-band Mid-band High-band

700 MHz

• Rollout by Q420

• Potential commercial launch by region in Q420, to be accelerated along with the robust 5G ecosystem

2300 MHz for eMBB

• Massive MiMo deployment started in Q2, to be ramped up in 2H20

• Rollout of TDD sites to reach 20k by the end of 2020

• Currently exploring options with TOT on the spectrum use for 5G

26 GHz

• Rollout in selected area completed; showcase on mmWave ready for Q320

Sensitivity: Open

Q2 2020

ticker symbol: DTAC

15 July 2020Dilip Pal, CFO

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10

Continued surge in data usage to now 18GB per sub per month (16.5% QoQ)

Sequential EBITDA and net profit growth despite revenue decline

Healthy cost control through ongoing optimization initiatives

Capex planning on-track

Financial highlights – Second Quarter 2020

Note: Figures are post-TFRS 15 & 16

Sensitivity: Open

COVID-19 and subsequent economic slowdown resulted in drop in monthly active users while a new normal revealed continued surge in data usage

11

Subscribers (mm)

-8.9%

-4.3%

Monthly active users

• Sub loss at lower level compared to Q1

• Prepaid sub loss at 757k QoQ and postpaid sub loss of 78k QoQ driven by higher churn and lower gross adds during COVID-19

A drop from COVID-19 impact

14.3 14.0 14.2 13.5 12.7

6.3 6.4 6.4 6.2 6.1

20.6 20.4 20.6 19.6 18.8

Q219 Q319 Q419 Q120 Q220

Prepaid Postpaid

• Despite fluctuation of subscriber base in the past quarters, our monthly active users trends are stabilized until the hit of COVID-19 starting mid-March; this reflected loss of tourist and migrants during the lockdown

Data usage (GB/sub/month)

+74.8%

+16.5%

• Change in customer behavior as part of a new normal resulted in continued surge in data usage

• Smartphone penetration 86.8%

• Approx. 10 mm subs on 2300 MHz network

10.5 11.7 12.8

15.8 18.4

Q219 Q319 Q419 Q120 Q220

GB/sub/mth

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Postpaid ARPU remained flattish while prepaid ARPU got affected more by COVID-19 and competition

12

Q220 blended ARPU excl. IC was +0.5% QoQ and +0.7% YoY

Blended ARPU (THB/sub/mth)* Postpaid ARPU (THB/sub/mth)* Prepaid ARPU (THB/sub/mth)

• Q220 postpaid ARPU excl. IC was -0.8% QoQ and -2.2% YoY

• Q220 prepaid ARPU excl. IC was -4.1% QoQ and -8.5% YoY reflecting intense competition, coupled with customer optimized spending from subsequent economic impact

Note: Figures are post-TFRS 15 & 16* Number of average subscribers used in ARPU calculation has been revised to make it in line with the reported subscribers, starting from Q120

+0.7%

+0.5%

-9.1%

-4.0%

-2.2%

-0.8%

137 142 138 130 125

142 147 144

134 129

Q219 Q319 Q419 Q120 Q220

ARPU excl. IC IC

532 543 546 529 525

551 562 565 543 539

Q219 Q319 Q419 Q120 Q220

ARPU excl. IC IC

249 258 258 251 253

258 267 267

258 260

Q219 Q319 Q419 Q120 Q220

ARPU excl. IC IC

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Service revenue excl. IC dropped QoQ and YoY due to COVID-19 impact

13

Service revenue excl. IC (THB bn) Total revenue (THB bn)

14.4 14.8 14.8 14.7 14.2

0.80.8 0.8 0.6

0.4

15.215.6 15.6 15.3

14.6

Q219 Q319 Q419 Q120 Q220

Core service revenue Others

15.7 16.1 16.1 15.8 15.0

2.0 1.72.7

1.71.4

2.3 2.52.6

2.62.7

20.0 20.321.4

20.119.2

Q219 Q319 Q419 Q120 Q220

Service rev Devices & SIM Other oper income

Note: Figures are post-TFRS 15 & 16

• Core service revenue dropped -3.3% QoQ and -1.1% YoY in Q220, affected by competition and peak of COVID-19

• Other service revenue excl. IC, mainly IR, was significantly affected by COVID-19

• Other operating income increased 4.6% QoQ and 18.9% YoY, mainly driven by revenue from TOT 2300 MHz

• Lower handset sales mainly from lower units sold as a result of over month-long of shop closure during the peak of COVID-19 outbreak

-3.6%

-4.5%

-4.3%

-4.6%

Sensitivity: Open

• Regulatory cost decreased from one-time gain

• Network OPEX dropped QoQ and YoY from cost optimization, capitalization of some lease contracts, and reduction in CAT lease expense,

• Higher other cost of services mainly from increase in TOT 2300 MHz network roaming cost, offset partly by lower international roaming and IDD costs

Cost of service dropped QoQ mainly from cost optimization initiatives

14

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

4.3% 4.4% 4.1% 4.2% 3.6%

11.5% 11.3% 11.6% 11.6% 11.1%

Q219 Q319 Q419 Q120 Q220

Regulatory costs Network opex

0.6 0.7 0.6 0.6 0.5

1.7 1.8 1.8 1.8 1.6

3.8 3.9 4.3 4.0 4.1

6.2 6.46.7 6.4 6.3

Q219 Q319 Q419 Q120 Q220

Regulatory Network Others

(THB mm) Q219 Q120 Q220 ∆ QoQ

CAT gross lease expenses** 369 358 307 -51

CAT lease expenses**, net of revenue from lease agreements 301 289 238 -51

TOT 2300MHz gross costs 3.360 3,688 3,816 +128

TOT costs, net of revenue from 2300MHz network rental 1,217 1,230 1,235 +5

Note: Figures are post-TFRS 15 & 16* Excluding depreciation, amortization, and IC** Lease agreements signed with CAT at the end of the concession (excl. tower related revenue & expense which were capitalized under TFRS 16)

+2.0%

-2.5%

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SG&A dropped QoQ and YoY as a result of lower activities and optimization effort

15

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

8.7% 8.6%

11.1%

8.1% 7.6%

5.5% 5.8% 5.9% 5.7%4.4%

Q219 Q319 Q419 Q120 Q220

Gen admin S&M

1.1 1.2 1.3 1.1 0.8

0.3 0.3 0.4 0.5 0.4

1.7 1.72.4

1.61.5

3.2 3.3

4.0

3.22.7

Q219 Q319 Q419 Q120 Q220

S&M Bad debt Gen admin

• S&M expenses dropped QoQ due to lower activities during the peak of COVID-19 impact

• Bad debt improved in Q220

• General admin dropped QoQ and YoY due to ongoing optimization effort as well as lower negotiated rental during lockdown period

Note: Figures are post-TFRS 15 & 16* Excluding depreciation and amortization

-14.2%

-16.3%

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Sequential EBITDA growth despite revenue decline driven by better cost management

16

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

38.7% 39.4%34.3%

38.2%42.1%

43.5% 44.6%38.8%

43.7%48.8%

Q219 Q319 Q419 Q120 Q220

Reported EBITDA % Normalized EBITDA %*

7.7 8.0 7.3 7.7 8.1

Q219 Q319 Q419 Q120 Q220

• EBITDA increased 5.1% QoQ and 4.2% YoY, as a result of overall cost optimization effort

• EBITDA margin stood at 42.1%, the highest level since Q118

Note: Figures are post-TFRS 15 & 16* EBITDA margin based on total revenues excluding revenues from CAT lease agreements (excl. tower related revenue & expense which were capitalized under TFRS 16) and TOT network rental in the denominator

+4.2%

+5.1%

Sensitivity: Open

Healthy rise in net profit

17

Net profit (THB bn) Capex (THB bn)

2.3 2.4

3.9

0.9 1.4

13.0% 13.7%

20.5%

4.9%8.4%

Q219 Q319 Q419 Q120 Q220

Capex Capex %*

1.6 1.8

0.8

1.51.9

Q219 Q319 Q419 Q120 Q220

Note: Figures are post-TFRS 15 & 16* Based on percentage of total revenues excluding revenues from CAT lease agreements (excl. tower related revenue & expense which were capitalized under TFRS 16) and TOT network rental in the denominator

+20.0%

+25.8%

• Net profit improved QoQ and YoY as a result of strong EBITDA growth and gain from fair value measurement of financial instruments

• Capex for Q220 on track, to be ramped up further in 2H20

• THB 0.87 per share dividend from H120 results

Sensitivity: Open

Net debt maintained at the same level

18

Net debt (THB bn)* Net debt to EBITDA (x)*, **

Note: Figures are post-TFRS 15 & 16* Net debt from Q419 includes lease liabilities** EBITDA pre-TFRS 15 & 16 for 2019 as reported previously*** Excluding impact from TFRS 9

45.3 45.8 40.4 40.2 41.6

24.6 24.9 24.445.3 45.8

64.9 65.1 66.0

Q219 Q319 Q419 Q120 Q220

Net debt Lease liabilities

1.6 1.6

2.1 2.1 2.1

Q219 Q319 Q419 Q120 Q220

Debt maturity profile (THB bn)***

11.0

1.3 1.3 1.3

4.0

3.0 1.5 2.0

15.0

2.5 4.3

2.8 3.3

6.0

1.5

7.0

3.0 2.5

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

Loan Debenture

• Net debt level (incl. lease liabilities) maintained QoQ in Q220 with slightly lower debt and lower cash and cash equivalents

• Net debt to EBITDA ratio was 2.1x at the end of Q220, same level as for the previous quarter

• Total debt THB 48 bn (THB 15 bn bank loan and THB 33 bn bond)

• THB 8 bn out of THB 11 bn bank loan expiring in 2020 can be rolled over

+92.6%

+1.6%

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Early signs of recovery, still high uncertainty due to negative economic outlook

1H20 H120 YoY% H220

Service revenues ex. IC(THB 29, 956 million)

-0.5%With COVID-19, our actual

1H20 reflected a YoY decline in revenues Impact from the outbreak

continued to be seen in the overall economy. Although we observed some early signs of recovery, there is still high uncertainty for the rest of the year.

COVID-19 impact

(I) Tourist and migrants

1.8%Excluding the identified

COVID-19 impact on revenues, our normalized YoY growth would be at

2.8%

(II) Other impact 1.5%

Total impact 3.3%

Sensitivity: Open

2020 guidance

20

Service revenue excl. IC*

EBITDA

CAPEX

Low single-digit growth

Mid single-digit growth

THB 13-15 bn

COVID-19 impact

EBITDA growth at level higher than service revenue growth driven by

cost optimization

•850/900 MHz swap delay and optimization

Low single-digit decline

EBITDA at 2019 level

THB 8-10 bn

Original guidance

Guidance revisited

Rationale

-0.5%

+4.3%

THB 2.2 bn

1H2020

Sensitivity: Open

DisclaimerCertain 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