(Translation)

Ref.: TRUE-SEC 032/2562

14th

August 2019

The President of the Stock Exchange of Thailand

The Stock Exchange of Thailand

Subject: Submission of the Interim Financial Information for Q2/2019

Enclosure: 1. A Set of the Reviewed Interim Financial Information for Q2/2019

(Thai / English)

2. A Set of the Management’s Discussion and Analysis for Q2/2019

(Thai / English)

True Corporation Public Company Limited (the “Company”) would like to submit a reviewed interim

consolidated and separate financial information for the second quarter ending 30th

June 2019 to the

Stock Exchange of Thailand.

The Company reported a consolidated net profit to equity holders of the Company of Baht 1,060.30

million for the second quarter of the Year 2019, representing a change of greater than 20 percent

compared with the net results of the same period in the last year. Please see further details in the

Management’s Discussion and Analysis for Q2/2019 as attached herewith.

Please be informed accordingly.

Respectfully yours,

- Signature -

Miss Yupa Leewongcharoen

Co-Chief Financial Officer

1

Management’s Discussion and Analysis

Overview True Group reported enhanced core business performance and profitability in the second quarter of 2019 as consolidated service revenue increased to Baht 26.2 billion, driven mainly by TrueMove H’s above-industry service revenue growth of 6.3% YoY, while cost optimization programs continued to deliver positive results affirming the Group’s confidence for the full-year profit guidance. There was a one-time impact from an amendment of the Labour Protection Law related to employee benefits totaling Baht 748 million in 2Q19. Excluding this item for a meaningful performance comparison, profit was Baht 1.8 billion in 2Q19, significantly improving from Baht 1.5 billion in 1Q19 and a normalized loss of Baht 0.6 billion in 2Q18 excluding one-time impact from asset sale to DIF and impairments. TrueMove H once again outperformed its peers as service revenue rose 6.3% YoY to Baht

19.5 million in 2Q19 driven mainly by strong growth in the postpaid segment driving blended

ARPU growth of more than 3% from the previous quarter. TrueMove H was the only player

in the industry that reported positive net adds, gaining approximately 229,200 subscribers in

the second quarter of 2019, and expanded its total subscriber base to 29.8 million. Blended

ARPU saw growth for the second consecutive quarter, increasing to Baht 212 in 2Q19

compared to Baht 205 in 1Q19 with ARPU growth from both postpaid and prepaid segments.

This solid performance was achieved as TrueMove H’s targeted marketing campaigns and

synergy with strategic and device partners gained traction further while the industry’s

competitive dynamics were improved with price optimization and the industry-wide

unwinding of the fixed-speed unlimited propositions.

TrueOnline continues to place importance on service quality as well as differentiated and

value-driven products to maintain its broadband leadership and enhance quality subscriber

growth. The business added 64k net subscribers in 2Q19 expanding its broadband internet

subscriber base and revenue up from the previous quarter to 3.6 million and Baht 6.3 billion

respectively. The broadband internet market, however, remained competitive with discounts

and higher speeds as key attractions in gaining subscribers. In response, TrueOnline

launched the “Up Your Happiness” campaign in the second quarter, offering speed and fiber

upgrades as well as TrueMove H data usage or certain TrueVisions channels for contract

extension, leading to significantly enhanced customer satisfaction. In early Q3, TrueOnline

launched the 1Gbps fiber campaign with the innovative Gigatex Fiber Router, sending and

receiving 1 Gbps internet signal at full speed and distributing WiFi signal coverage without

additional modifier, combined with TrueID TV box. The campaign has received positive

market responses resulting in a rising trend of high-tier acquisition in its portfolio.

TrueVisions’ service revenue rose 3.7% from the previous quarter to Baht 3.0 billion driven

by revenues from organizing major profitable concerts in the second quarter. The business

continues to aggregate and develop high-quality content to meet consumers’ preferences

while synergy with the multiple platforms of True Group, particularly the TrueID TV box, not

only matches consumers’ lifestyles but also significantly expands its viewer base beyond

TrueVisions’ 4 million customers. TrueVisions recently acquired exclusive broadcasting rights

of the English Premier League (EPL) from 2019/20 to 2021/22 seasons including live

broadcasts, reruns, and highlights of every match on all platforms covering traditional TV,

2

online and digital. This expands True Group’s growth potential from content subscription,

sublicensing and advertising through traditional TV, media and digital platforms.

True Digital Group (TDG) is building an ecosystem of innovative platforms and solutions to capture new growth opportunities from digital, analytics, IoT and related technologies. TDG's flagship digital media platform “TrueID” is leading within its category with monthly active users growing to over 19 million in 2Q19. TrueID offers its subscribers a wide range of content including movies, television programs, music, sports, and articles. TrueID also provides a digital gateway to the Group’s privilege program “TrueYou” with TruePoints’ redemption across dining, shopping and entertainment categories. TrueID TV offers the same content and privileges within the convenience of the home television screen. The recent acquisition of EPL rights by TrueVisions Group will further bolster TDG’s value proposition across TrueID and TrueID TV. These platforms offer additional revenue streams from premium content, digital advertising, and affiliate marketing, whilst increasing customer stickiness with True Group’s traditional core businesses. TDG’s analytics platform enables targeted digital marketing campaigns as well as generating new consumer insights from its proprietary data for both existing True Group and third-party clients. TDG’s IoT unit has developed innovative digital solutions across multiple verticals including agriculture, retail, healthcare and transport & logistics, creating new revenue streams for the Group. Its IoT platforms support 193,000 connected IoT devices, representing a 14% growth from the previous quarter. 2Q19 Financial Summary True Group reported a consolidated net profit to shareholders of the parent company of Baht 1,060.3 million in 2Q19, representing a change of greater than 20% YoY, which is summarized as below:

Consolidated service revenue grew 1.4% YoY or 4.1% YoY excluding World Cup contribution to Baht 26.2 billion driven mainly by continued growth of the cellular business with higher subscriber base and non-voice usage. Non-recurring items were expenses related to employee benefits in 2Q19 and the gain from asset sale to DIF and impairments in 2Q18. Excluding these items for a meaningful performance comparison, profit was approximately Baht 1.8 billion in 2Q19 increasing from a loss of Baht 0.6 billion in 2Q18 as operating profit grew to Baht 1.4 billion supported by revenue growth and cost controls. Reported net profit was approximately Baht 1.1 billion compared to Baht 9.8 billion in the same period last year.

3

Consolidated Results of Operations - Normalized Basis

Remark:

2Q19 significant item was expense related to employee benefits of Baht 748 million (recorded under the “Other (expense) income” line in the above table) following an amendment bill to the Labour Protection Law stipulating that the compensation for employees who have retired and have more than or equal to 20 years of service is increased to 400 days from 300 days’ pay.

Non-recurring items refer to one-time impact from employee benefits, DIF revaluation, gain from asset sale to DIF and impairments. Quarterly results of 2018 were restated as the Group reached an agreement with CAT regarding the ownership of telecommunication towers and transferred the ownership of telecommunication towers to CAT in November 2018.

Referring to the auditor’s opinion regarding uncertainties on the outstanding litigations and commercial agreements of which details are not finalized (see more detail in the note to financial statements section 18), the ultimate outcomes cannot be determined at present and management believes that they will not have a material impact upon the Group’s financial performance or operations.

(UnauCiteC) 2Q19 1Q19 2Q18 1H19 1H18 % Change

(Baht in millions unless otherwise indicated) (Restated) Q-o-Q Y-o-Y (Restated) Y-o-Y

Revenues from providing services 30,086 29,675 30,248 1.4 (0.5) 59,761 59,485 0.5

Interconnection revenue 826 838 1,000 (1.4) (17.4) 1,664 2,012 (17.3)

Network rental revenue 3,074 3,024 3,429 1.7 (10.4) 6,098 6,851 (11.0)

Service revenue 26,186 25,813 25,818 1.4 1.4 51,999 50,623 2.7

Revenues from product sales 3,487 3,280 30,950 6.3 (88.7) 6,767 34,800 (80.6)

Total revenues 33,573 32,955 61,198 1.9 (45.1) 66,528 94,285 (29.4)

Total revenues excl. revenue from asset sale to DIF 33,573 32,955 34,433 1.9 (2.5) 66,528 67,521 (1.5)

Total cost of providing services 21,543 21,194 20,865 1.6 3.2 42,737 41,328 3.4

Regulatory costs 718 725 688 (0.9) 4.5 1,443 1,351 6.8

Interconnection cost 915 925 1,057 (1.1) (13.4) 1,840 2,154 (14.6)

Cost of providing services exclude IC 14,277 14,171 14,181 0.7 0.7 28,448 27,324 4.1

Depreciation and amortization 5,633 5,373 4,940 4.8 14.0 11,006 10,500 4.8

Cost of sales 3,858 3,810 7,448 1.3 (48.2) 7,668 11,308 (32.2)

Selling and administrative expenses 6,742 6,421 8,531 5.0 (21.0) 13,163 17,005 (22.6)

Depreciation and amortization 842 682 2,829 23.6 (70.2) 1,524 5,790 (73.7)

Others 5,899 5,740 5,702 2.8 3.5 11,639 11,216 3.8

EBITDA 7,905 7,584 32,123 4.2 (75.4) 15,489 40,932 (62.2)

EBITDA excl. gain from asset sale to DIF 7,905 7,584 8,659 4.2 (8.7) 15,489 17,468 (11.3)

Depreciation and amortization (6,475) (6,055) (7,769) 6.9 (16.7) (12,530) (16,289) (23.1)

Operating profit 1,430 1,529 24,353 (6.5) (94.1) 2,960 24,643 (88.0)

Operating profit excl gain from asset sale to DIF 1,430 1,529 889 (6.5) 60.8 2,960 1,179 151.1

Interest expense (net) (1,768) (1,535) (1,257) 15.2 40.6 (3,302) (2,521) 31.0

Interest income 53 99 72 (46.2) (26.7) 152 107 41.9

Interest expense (1,821) (1,634) (1,329) 11.4 37.0 (3,454) (2,628) 31.4

Other financial fees (60) (40) (31) 50.6 95.6 (100) (58) 73.6

Financial cost related to license (470) (509) (518) (7.6) (9.2) (980) (1,059) (7.5)

Income tax (expense) revenue 818 28 (7,129) NM NM 846 (6,886) NM

Current tax (60) (206) 2 (71.0) NM (265) (44) 503.1

Deferred income tax 878 234 (7,131) 275.8 NM 1,111 (6,842) NM

Share of results in subsidiaries and associates 933 2,139 856 (56.4) 8.9 3,072 1,876 63.7

Foreign exchange gain (loss) 598 (26) (271) NM NM 572 (413) NM

Other (expense) income (452) (93) (6,250) (388.7) 92.8 (545) (6,525) 91.6

Net profit (loss) for the year 1,029 1,494 9,753 (31.1) (89.5) 2,522 9,058 (72.2)

(Income) loss attributable to non-controlling interests 32 15 (2) 110.2 NM 47 21 125.1

Net profit (loss) to equity holders of the Company 1,060 1,509 9,751 (29.7) (89.1) 2,569 9,079 (71.7)

Net profit (loss) to equity holders of the Company

excl. non-recurring items 1,809 315 (577) 475.0 NM 2,123 (1,250) NM

% Change

4

CONSOLIDATED RESULTS OF OPERATIONS

True Group’s consolidated service revenue was Baht 26.2 billion, increasing 4.1% YoY excluding impact from the 2018 FIFA World Cup broadcasting for a meaningful performance comparison due mainly to continued growth of the cellular business with higher non-voice revenue and subscriber base. Reported number showed 1.4% growth both YoY and QoQ. This drove 6-month consolidated service revenue to reach record high of Baht 52.0 billion in 1H19.

o TrueMove H continued to gain both postpaid and prepaid base with positive ARPU growth. This boosted its service revenue by 6.3% YoY and 2.2% QoQ to Baht 19.5 billion in 2Q19 and 6.9% YoY to Baht 38.6 billion in 1H19. The business recorded 229.2k net adds in 2Q19, contrasting with a net decrease of 120.4k subscribers for the other major industry’s players combined, and expanded its total subscriber base to 29.8 million. Its blended ARPU increased to Baht 212 in 2Q19 compared to Baht 205 in the previous quarter as ARPU rose for both postpaid and prepaid segments.

The combined voice and non-voice revenue increased to Baht 18.1 billion driven mainly by postpaid revenue growth while higher inbound roaming traffic from partners helped boost revenue from international roaming and other services to Baht 1.5 billion in 2Q19.

o TrueOnline’s service revenue was Baht 9.0 billion in 2Q19, increasing 1.4% QoQ but softening 2.8% YoY driven by revenues from broadband, internet and business data service of Baht 6.3 billion. TrueOnline resumed its QoQ revenue growth trend due to positive responses to the fiber broadband package bundling with TrueID TV box and niche propositions like the Gamer Pro Pack launched in the second quarter. TrueOnline acquired 64k net adds and expanded its broadband subscriber base to 3.6 million with an ARPU of Baht 552 in 2Q19.

The recent launch of the “True Gigatex Fiber” combining 1Gbps fiber broadband with Gigatex Fiber Router and TrueID TV Box in late July has received a promising response and is expected to contribute to growth in the second half of the year.

o TrueVisions’ service revenue was Baht 3.0 billion, increasing 3.7% QoQ but decreasing 15.1% YoY driven mainly by other service revenues (comprising entertainment, sponsorship, advertising and other revenues) which grew QoQ to Baht 1.1 billion on arranging profitable Korean concerts but declined from a high base in the previous year due to the 2018 FIFA World Cup contribution.

Subscription and installation revenue of Baht 1.9 billion remained TrueVisions’ main revenue source representing 64% of its service revenue in 2Q19. The EPL broadcasting rights on all platforms will support growth in the second half through revenue growth from content subscription, traditional and digital advertising and sponsorship, and sublicensing certain matches to other operator.

TrueVisions ended the second quarter with total customer base of approximately 4 million, of which 2.3 million were paying subscribers with ARPU of Baht 288. Mass market subscribers declined in the second quarter following strong response to the commercial launch of TrueID TV box whose subscriber base was not reported under TrueVisions.

5

Product sales were Baht 3.5 billion, increasing QoQ on positive response to the device and TrueID TV box campaigns but decreasing YoY due to previous year’s high base from the asset sale to DIF. Subsidies were well under controlled with net loss from product sales declining to Baht 371 million in 2Q19 compared to Baht 530 million in the previous quarter.

Regulatory costs increased 4.5% from the same period last year to Baht 718 million driven by solid growth of cellular service revenue.

Net IC expense was Baht 89 million, increasing YoY and QoQ following lower interconnection revenue.

Core operating expense (comprising cost of providing services excluding IC and other S&A) was Baht 20.2 billion, increasing 1.3% QoQ on higher marketing expenses and 1.5% YoY driven by rental payable to DIF following asset sale to the fund in May 2018; excluding this rental payment, core operating expense decreased approximately 1% from the same period last year.

EBITDA grew 4.2% QoQ to Baht 7.9 billion with higher service revenue and controlled device subsidies. The YoY decline was driven by impact from asset sale to DIF last year including the gain and related rental payments as well as loss from product sales following TFRS15 adoption this year. Excluding these items, EBITDA grew from the previous year with EBITDA margin on service revenue of 36% in 2Q19.

Depreciation and amortization expenses dropped 16.7% YoY to Baht 6.5 billion mainly due to the absence of accumulated subsidy amortization due to TFRS15 adoption. The QoQ increase of 6.9% was primarily driven by network expansion.

These drove operating profit to Baht 1.4 billion in 2Q19 compared to Baht 0.9 billion excluding gain from asset sale to DIF in 2Q18.

Interest expense (net) increased to Baht 1.8 billion on higher debt level to support business expansion and working capital requirements and longer average maturities.

Income tax revenue was Baht 818 million in 2Q19 compared to income tax expense of Baht 7.1 billion in 2Q18 due to deferred tax expenses related to asset sale transactions with DIF.

True Group continued to report positive core earnings and profits in 2Q19. Net profit to shareholders of the parent company was Baht 1.1 billion including one-time expense related to employee benefits due to an amendment of the Labour Protection Law; excluding this, net profit was approximately Baht 1.8 billion, improving from Baht 1.5 billion in 1Q19 and a normalized loss of Baht 0.6 billion excluding one-time impact from the gain from asset sale to DIF and impairments in 2Q18 for a meaningful performance comparison.

6

Normalized Revenue Profile (Quarter)

Remark: TrueOnline’s other revenues include revenues related to digital platform and privilege programs as well as network O&M. TrueVisions’ other revenues include revenues related to entertainment, sponsorship, advertising and others.

(Unaudited) 2Q18

(Baht in millions unless otherwise indicated) Revenue

% of revenue

after

eliminations

Revenue

% of revenue

after

eliminations

Revenue

% of revenue

after

eliminations

YoY QoQ

TrueMove H 26,755 26,159 40,139 (33.3) 2.3

Service revenue 19,518 19,103 18,367 6.3 2.2

- Voice and Non-Voice 18,065 17,993 17,350 4.1 0.4

- IR and others 1,453 1,109 1,017 42.9 31.0

Interconnection revenue 826 838 1,000 (17.4) (1.4)

Network rental revenue 2,967 2,916 3,321 (10.7) 1.7

Product sales 3,444 3,301 17,451 (80.3) 4.3

Intersegment elimination (1,318) (1,068) (5,075) (74.0) 23.4

TrueMove H after elimination 25,437 75.8% 25,090 76.1% 35,064 57.3% (27.5) 1.4

TrueOnline 9,137 8,956 34,320 (73.4) 2.0

Service revenue 8,954 8,831 9,212 (2.8) 1.4

- Broadband, Internet and Business Data Service 6,263 6,186 6,491 (3.5) 1.3

- Others 2,691 2,646 2,721 (1.1) 1.7

Network rental revenue (FOC) 108 108 109 (0.9) 0.0

Product sales 76 17 24,999 (99.7) 336.1

Intersegment elimination (3,373) (3,378) (10,988) (69.3) (0.1)

TrueOnline after elimination 5,764 17.2% 5,579 16.9% 23,332 38.1% (75.3) 3.3

TrueVisions 3,030 2,948 3,525 (14.0) 2.8

Service revenue 3,002 2,894 3,537 (15.1) 3.7

- Subscription and installation 1,928 1,961 2,011 (4.1) (1.7)

- Others 1,075 934 1,526 (29.6) 15.1

Product sales 28 54 (12) NM (48.0)

Intersegment elimination (658) (663) (723) (9.0) (0.8)

TrueVisions after elimination 2,373 7.1% 2,285 6.9% 2,802 4.6% (15.3) 3.8

Normalized consolidated revenues 38,922 38,063 77,983 (50.1) 2.3

Total intersegment elimination (5,349) (5,109) (16,786) (68.1) 4.7

Normalized consolidated revenues - net 33,573 100% 32,955 100.0% 61,198 100% (45.1) 1.9

Normalized consolidated revenues - net

(excl. revenue from asset sale to DIF)33,573 32,955 34,433 (2.5) 1.9

2Q19 1Q19 % Change

Consolidated Revenues (Before Intersegment Eliminations)

7

Normalized Revenue Profile (YTD)

Remark: TrueOnline’s other revenues include revenues related to digital platform and privilege programs as well as network O&M.

TrueVisions’ other revenues include revenues related to entertainment, sponsorship, advertising and others.

(Unaudited) % Change

(Baht in millions unless otherwise indicated) Revenue

% of revenue

after

eliminations

Revenue

% of revenue

after

eliminations

YoY

TrueMove H 52,914 66,056 (19.9)

Service revenue 38,621 36,123 6.9

- Voice and Non-Voice 36,058 33,956 6.2

- IR and others 2,562 2,167 18.3

Interconnection revenue 1,665 2,013 (17.3)

Network rental revenue 5,883 6,632 (11.3)

Product sales 6,745 21,288 (68.3)

Intersegment elimination (2,386) (6,087) (60.8)

TrueMove H after elimination 50,527 75.9% 59,968 63.6% (15.7)

TrueOnline 18,094 43,541 (58.4)

Service revenue 17,785 18,298 (2.8)

- Broadband, Internet and Business Data Service 12,449 12,820 (2.9)

- Others 5,337 5,478 (2.6)

Network rental revenue (FOC) 215 219 (1.8)

Product sales 93 25,024 (99.6)

Intersegment elimination (6,751) (14,515) (53.5)

TrueOnline after elimination 11,343 17.0% 29,026 30.8% (60.9)

TrueVisions 5,978 6,630 (9.8)

Service revenue 5,897 6,629 (11.0)

- Subscription and installation 3,889 4,042 (3.8)

- Others 2,008 2,587 (22.4)

Product sales 81 1 NM

Intersegment elimination (1,320) (1,340) (1.4)

TrueVisions after elimination 4,658 7.0% 5,290 5.6% (12.0)

Normalized consolidated revenues 76,986 116,227 (33.8)

Total intersegment elimination (10,458) (21,942) (52.3)

Normalized consolidated revenues - net 66,528 100% 94,285 100% (29.4)

Normalized consolidated revenues - net

(excl. revenue from asset sale to DIF)66,528 67,521 (1.5)

Consolidated Revenues (Before Intersegment Eliminations)

1H19 1H18

8

Consolidated Balance Sheet and Cash Flows

2017 2016

(Unaudited) 30 Jun 19 31 Dec 18 % Change

(Baht in millions unless otherwise indicated)

Balance Sheet

Cash and cash equivalents 23,475 20,672 13.6

Trade accounts receivable, net 60,028 55,188 8.8

Other receivables 9,251 9,288 (0.4)

Other current assets 34,597 39,544 (12.5)

Total current assets 127,352 124,692 2.1

Property, plant and equipment, net 217,635 205,812 5.7

Goodwill, net 11,887 11,403 4.2

Intangible assets, net 118,250 121,080 (2.3)

Deferred income tax assets 5,275 2,571 105.2

Other non-current assets 29,644 30,011 (1.2)

Total non-current assets 382,690 370,876 3.2

Total assets 510,043 495,569 2.9

Short-term borrowings 44,276 84,909 (47.9)

Trade accounts payable 62,576 66,315 (5.6)

Other payables 66,643 45,440 46.7

Current portion of long-term borrowings 13,701 2,361 480.2

Other current liabilities 5,906 5,235 12.8

Total current liabilities 193,102 204,260 (5.5)

Long-term borrowings 125,749 68,054 84.8

Deferred income tax liabilities 5,607 6,085 (7.9)

Liabilities under agreements and licenses for operations 38,196 64,059 (40.4)

Employee benefit obligations 3,223 2,375 35.7

Other non-current liabilities 20,366 16,851 20.9

Total non-current liabilities 193,142 157,425 22.7

Total liabilities 386,244 361,685 6.8

Total shareholder's equity 123,799 133,884 (7.5)

Total liabilities and shareholder's equity 510,043 495,569 2.9

1H19 1H18

30 Jun 19 30 Jun 18 % Change

(Restated)

Cash Flows

Cash flows from operating activities before interest and tax 8,297 41,711 (80.1)

Net interest and tax paid (3,671) (4,563) (19.5)

Cash flows from operating activities (net) 4,626 37,148 (87.5)

Cash flows (used in) from investing activities (25,284) (25,320) (0.1)

Cash flows (used in) from financing activities 23,477 7,880 197.9

Net (decrease) increase in cash and cash equivalents 2,819 19,708 (85.7)

Beginning cash balance and effects of exchange rate changes 20,656 18,254 13.2

Ending cash balance 23,475 37,963 (38.2)

9

FINANCIAL POSITION

True Group’s core earnings improved in 2Q19 driving net profit to Baht 1.1 billion or Baht 1.8 billion with net profit margin of 5.4% excluding one-time impact from employee benefits. This was improved from net profit margin of 1.0% in 1Q19 and negative 1.7% in 2Q18 excluding DIF revaluation, gain from asset sale to DIF and impairments for a meaningful performance comparison.

True Group is in compliance with and meets all of its debt obligations. At the end of 2Q19, the net debt to EBITDA ratio increased to 5.0 times (3.7 times excluding impact from asset sale to DIF) while net debt to equity ratio increased slightly to 1.2 times. The Group’s current ratio was flat YoY at 0.7 times but increased QoQ driven by lower accrued expenses as a result of the 900MHz payment extension.

Financial Ratios

2Q19 1Q19 2Q18

Current Ratio Times 0.7 0.5 0.7

Net Debt to EBITDA Times 5.0 2.5 1.4

Net Debt to Equity Times 1.2 1.1 0.6

Net Profit Margin % 3.2 4.6 15.9

Net Profit Margin

(excl. employee benefits, DIF revaluation,

gain from asset sale to DIF and impairments) % 5.4 1.0 -1.7

Return on Equity (ROE) % 0.4 7.1 9.8

Return on Equity (ROE)

(excl. employee benefits, DIF revaluation,

gain from asset sale to DIF and impairments) % 0.1 -1.8 -2.8

Assets

True Group's assets increased 2.9% from the end of 2018 to Baht 510.0 billion mainly due to higher property, plant and equipment (net) which increased 5.7% to Baht 217.6 billion following the Group’s business expansion.

Intangible assets (net) decreased 2.3% from the end of 2018 to Baht 118.2 billion driven mainly by the amortization of the mobile spectrum licenses during the period.

Investment in associates and interest in joint ventures grew to Baht 23.7 billion compared to 21.9 billion at the end of 2018 driven by DIF’s incremental investment value (see more detail in the note to financial statements section 9).

Goodwill (net) increased 4.2% from the end of 2018 to Baht 11.9 billion due to investment in Crave Interactive Limited in April 2019 (see more detail in the note to financial statements section 9).

Trade account receivables (net) increased to Baht 60.0 billion due to domestic roaming receivable, of which related domestic roaming payable grew by the same amount. Excluding this, trade accounts receivable declined with lower average collection period of 89 days in 2Q19.

10

Consolidated Separate

financial information financial information

30 June 31 December 30 June 31 December 2019 2018 2019 2018

Baht Million Baht Million Baht Million Baht Million

Receivable from TOT 332.97 348.19 332.97 348.19 Billed customers 18,895.48 20,844.04 951.36 1,067.00

Receivables and accrued income from Related parties (Note 19)

12,574.77

13,814.25

10,354.77

7,677.39

Trade accounts receivable 31,803.22 35,006.48 11,639.10 9,092.58

Accrued income 7,413.07 7,159.92 2,269.32 2,270.22

Domestic roaming receivable 28,025.14 20,288.19 - -

Total trade accounts receivable 67,241.43 62,454.59 13,908.42 11,362.80

Less Allowance for doubtful accounts (7,213.23) (7,266.22) (3,054.73) (3,067.90)

Trade accounts receivable, net 60,028.20 55,188.37 10,853.69 8,294.90

As at 30 June 2019 and 31 December 2018, trade receivables, included in trade and other receivables in statements of financial position, can analyze aging as follows:

Consolidated Separate

financial information financial information

30 June 31 December 30 June 31 December 2019 2018 2019 2018

Baht Million Baht Million Baht Million Baht Million

Current 12,321.09 13,898.58 2,548.13 1,573.18 Less than 3 months 6,773.87 8,359.78 1,423.72 4,215.05 3 - 6 months 3,409.41 3,173.65 2,635.91 657.08 6 - 12 months 2,978.84 2,795.69 2,741.04 1,019.27

Over 12 months 6,320.01 6,778.78 2,290.30 1,628.00

Trade accounts receivable 31,803.22 35,006.48 11,639.10 9,092.58 Accrued income 7,413.07 7,159.92 2,269.32 2,270.22

Domestic roaming receivable 28,025.14 20,288.19 - -

Total trade accounts receivable 67,241.43 62,454.59 13,908.42 11,362.80

Less Allowance for doubtful accounts (7,213.23) (7,266.22) (3,054.73) (3,067.90)

Total 60,028.20 55,188.37 10,853.69 8,294.90

Liabilities

True Group’s total liabilities increased 6.8% from the end of 2018 to Baht 386.2 billion mainly due to higher long-term borrowings to support business expansion which drove interest bearing debt (short-term and long-term borrowings excluding financial leases) to Baht 177.1 billion.

Trade accounts payable decreased 5.6% from the end of 2018 to Baht 62.6 billion driven by vendor payments during the period.

11

Shareholders’ equity

Shareholders’ equity declined from the end of 2018 to Baht 123.8 billion due to TFRS15 adoption mainly as accumulated subscriber acquisition costs were deducted from retained earnings on 1 January 2019. The Company paid dividends totaling Baht 3.0 billion in May 2019.

Cash Flow

True Group’s primary capital resources in 1H19 were cash flows from financing activities totaling Baht 23.5 billion, driven by additional borrowings to support business expansion and spectrum license payment.

Cash flows from operating activities (before interest and tax payments) in 1H19 were Baht 8.3 billion, declining YoY due to proceeds from asset sale to DIF in May 2018; excluding this, cash flows from operating activities in 1H19 grew 139% YoY. Net cash flows from operating activities sequentially improved to Baht 3.5 billion in 2Q19, 3 times the 1Q19 level, driving 1H19 net cash flows from operating activities to Baht 4.6 billion.

Cash flows used in investing activities were slightly down (-0.1%) YoY at Baht 25.3 billion in 1H19 with cash CAPEX excluding the mobile spectrum license fee of approximately Baht 22 billion in line with the guidance.

Change in accounting policies TFRS 15, Revenue from contracts with customers The Group has adopted the new Thai Financial Reporting Standards (TFRS) no. 15, Revenue from contracts with customers from 1 January 2019 under the modified retrospective approach and the comparative figures have not been restated. The Group did apply practical expedient relates to completed contracts and contract modifications allowed by TFRS 15.

The adoption of TFRS 15 mainly effects the Group’s accounting treatment on the following topics. a) Prior to the adoption of TFRS 15, the Group recorded subscriber acquisition cost as an asset. The subscriber acquisition cost is the cost of essential equipment necessary for customers to use the Group’s services, including the difference of the allocated fair value of selling price and the cost of telephone handsets distributed to subscribers. Subscriber acquisition cost is amortised over the future economic benefit. Upon the adoption of TFRS 15, the Group does not capitalise subscriber acquisition cost in the consolidated financial position. b) Upon the adoption of TFRS 15, the Group recognises contract costs for incremental commission expenses paid to the agents or the distributors in conjunction with obtaining customer contracts (which were previously expensed as incurred) as an asset. The contract cost is amortised using the straight-line method over the expected life of the customer contract.

TFRS15 impact

2Q19 TFRS 15 impact 2Q19

Unit: Baht million (TFRS 15) (Previous accounting policy)

Income statement

Cost of sale (3,858) (587) (3,271)

Selling expenses (3,162) 2,472 (5,634)

Income tax revenue 818 (376) 1,194

Balance Sheet

Other current assets 4,162 (4,324) 8,486

Property, plant and Equipment 217,635 (313) 217,947

Deferred income tax assets 4,925 1,174 3,751

Other non current assets 3,783 (1,583) 5,365

Deferred income tax liabilities 13,838 1 13,837