Q302 Financial and Operational Highlight Conference Call 18.11.02 Participants: Mr. Grant Ferguson - CFO Ms. Helene Sandberg - COO Mr. Petter-Borre Furberg - ACFO Mr. Premon Pinskul - ACFO Ms. Kulvadee Kanjanabose - ACFO
Market Mobile industry has moved from a growing market to a maturing market. � DTAC has adjusted its strategy to focus on CRM programs to retain both postpaid and prepaid � customers, such as “Dflex,” “Care Plus” for premium customers, and brand development initiatives, such as “make it EASY ” = E ffective A ccessible S incere Y ours Acquisition Customer Retention Orientation Orientation Focus on Focus on Market Share Revenue and Margin In Oct 02, DTAC introduced one sim price for all postpaid starter kit packages to enhance � subscriber productivity and profitability. In Nov 02, DTAC offered new prepaid voucher card structure to encourage refill and usage. � Investor Relations: IR@DTAC.co.th Page 2 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Subscribers Total subscribers as of 30 September 2002 was 5,130,308 with 72.65% prepaid customers. � Total net additional subscribers acquired in Q302 and 9M02 were 878,776 and 2,392,710, � respectively In Q302, total prepaid subscribers increased by 1,065,833 while postpaid subscribers reduced � by 187,057. Net Additional and Total Subscribers Postpaid VS Prepaid (%) 100 % 1 , 400 , 000 5 , 600 , 000 5 , 130 , 308 90 % 19 % 1 , 200 , 000 32 % 4 , 251 , 532 4 , 600 , 000 80 % 45 % 1 , 000 , 000 70 % 63 % 3 , 225 , 567 73 % 800 , 000 3 , 600 , 000 60 % 2 , 737 , 598 50 % 600 , 000 2 , 300 , 244 2 , 600 , 000 81 % 40 % 400 , 000 68 % 30 % 55 % 200 , 000 1 , 600 , 000 20 % 37 % 27 % 10 % 0 600 , 000 0 % Q 301 Q 401 Q 102 Q 202 Q 302 - 200 , 000 Q 301 Q 401 Q 102 Q 202 Q 302 - 400 , 000 - 400 , 000 Postpaid Prepaid Net addition - Postpaid Net addition - Prepaid Tota Subscribers Investor Relations: IR@DTAC.co.th Page 3 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Breakdown of Subscriber Base As of Sep 30, 2002, the number of Dprompt subscribers increased significantly, but Dlite � and Non-D package, who typically pay fixed monthly fees, decreased substantially. As of Sep 30, 2002, after only one month in the market, Dflex has attracted 82,000 � customers. 600 4,000 3,500 500 3,000 400 2,500 300 2,000 1,500 200 1,000 100 500 0 0 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Dlite Dflex Non-Dpackage Dprompt Postpaid Investor Relations: IR@DTAC.co.th Page 4 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Network Efficient network utilization. Approximately 87% of all sectors have satisfactory utilization � and minimum congestion in the peak hours. Q102 Q202 Q302 GSM Switching Centers 20 22 24 GSM Switching Capacities 4,560,000 5,510,000 6,710,000 GSM No. of Cell Sites 3,433 3,470 3,684 Investor Relations: IR@DTAC.co.th Page 5 Tel. (66) 2 202-8000 ext. 30964-5, 30968
2002 YTD Operating Result Consolidated revenue increased 19% YoY, primary due to a 20% improvement in telephone service revenue. � Service revenue was largely driven by the increase in the customer base. � Cost of telephone services rose 28% YoY, primarily due to the amortization of deferred rights (network � depreciation). Selling and administrative expenses, excluding the effect of increased provisions for doubtful accounts, � increased by 8%. EBITDA increased 18% YoY, and the net earnings rose 17%. � Million THB 30 , 000 25 , 550 25 , 000 21 , 547 9 M 01 9 M 02 18 , 988 20 , 000 15 , 871 15 , 000 10 , 106 10 , 000 7 , 892 7 , 842 6 , 591 5 , 584 4 , 890 5 , 000 0 Total revenue Service revenue Cost of SG&A EBITDA telephone service Investor Relations: IR@DTAC.co.th Page 6 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Q3 Operating Result Total revenue decreased 14% YoY and 28% QoQ, primary due to the discontinuance of handset � business in May 2002. Cost of telephone services rose 12% YoY, generally consistent with the corresponding changes � in the constituent part of total revenue. Selling and administrative expenses decreased by 5%. � EBITDA dropped 3% YoY, and the net earnings decreased 36% YoY. � Million THB 9 , 000 7 , 622 7 , 500 6 , 573 6 , 000 4 , 500 3 , 379 3 , 017 2 , 348 3 , 000 2 , 434 1 , 812 1 , 717 1 , 500 598 378 0 Total revenue Cost of SG&A EBITDA Net Earnings telephone service 3 M 01 3 M 02 Investor Relations: IR@DTAC.co.th Page 7 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Q302 Revenue Revenues from sales of telephone sets and SIM cards declined 83% YoY and 90% QoQ caused � by the discontinuance of handset business in May 2002 Revenues from telephone services increased 3% YoY, but dropped 8% QoQ � Million THB 10 , 000 9 , 000 -8% 8 , 000 7 , 000 -89% -34% 6 , 000 5 , 000 4 , 000 3 , 000 2 , 000 1 , 000 0 Q 202 Rev. from Rev. from Others Q 302 Total Rev. Tel. Service Sales Total Rev. Investor Relations: IR@DTAC.co.th Page 8 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Q302 Service Revenues Prepaid revenues increased by 4% QoQ as a combined result of: � � Gross airtime revenues rose by 10% � Amortization of airtime promotions peaked in Q302, an increase of 26% QoQ Revenues from postpaid airtime reduced 11% QoQ from a combination of internal rotation and � external churn Monthly fees from Dlite and non-Dpackage subscribers, including many Analog customers, � decreased 24%. Million THB - 7 , 000 +10% 6 , 000 -11% -24% 5 , 000 Net Prepaid Rev. = +4% 4 , 000 3 , 000 2 , 000 1 , 000 0 Q 202 Prepaid Amort of Postpaid Monthly Q 302 Service Gross promotion Rev. Fee Service Rev. Rev. Rev. Investor Relations: IR@DTAC.co.th Page 9 Tel. (66) 2 202-8000 ext. 30964-5, 30968
ARPU Postpaid ARPU in Q302 increased to Baht 1,079 compared to Baht 1,028 in Q202. However, full � diluted prepaid ARPU for Q302 dropped 32.4% to Baht 177 from Baht 262 in Q202. Excluding the effect of promotional airtime, prepaid ARPU in Q302 was approximately Bt. 227. � Baht 1,200 1,079 1,027 1,028 1,016 1,010 1,000 908 800 839 728 600 577 400 354 400 428 300 289 262 227 177 200 0 Q301 Q401 Q102 Q202 Q302 ARPU -Postpaid ARPU -Prepaid ARPU -Prepaid bef promotion Blended Investor Relations: IR@DTAC.co.th Page 10 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Average Prepaid Accum. Sub. VS Prepaid Gross Revenue Due to the effect of the validity period of activated SIM cards and subscriptions activated by � dealers before they are sold, prepaid gross revenue from May 02 – Sep 02 showed little growth despite the growth in the subscriptions sold. In October prepaid gross revenue increased 14% from September due to pre-activated � subscriptions being sold to customers and higher airtime usage by prepaid subscribers. Subs (m) Baht 4,500 1,000,000 900,000 800,000 700,000 3,000 600,000 500,000 400,000 1,500 300,000 200,000 100,000 0 0 Jan- Feb- Mar- Apr- May- Jun- Jul-02 Aug- Sep- Oct- 02 02 02 02 02 02 02 02 02 Average Accum. Sub Gross Revenue Investor Relations: IR@DTAC.co.th Page 11 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Sources and Uses of Fund (9 Months) Sources of Fund Uses of Fund Million Baht Million Baht Cash beginning 3,093 CAPEX* 12,267 Operating cashflow( Bf.interest ) 12,806 Net financing costs 2,210 ECA financing 6,050 Principal Repayment 4,809 Total source of funds 21,949 Total use of funds 19,286 Cash ending 2,663 *Including changes in account payables for capital items. YTD, new commitments were THB 11,190 million. Investor Relations: IR@DTAC.co.th Page12 Tel. (66) 2 202-8000 ext. 30964-5, 30968
EBI TDA Margin Investor Relations: IR@DTAC.co.th Page13 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Debt Refinancing The debt refinancing was an integral part of DTAC’s proactive liability management plan, focusing on cost optimization, repayment profile and risk management. A) THB 4 Billion Syndicated loan One of best local corporate deals in 2002 that can achieved a benchmark interest rate of THBFIX+1.65% with a 6 year tenor. B) THB 5 Billion Debenture Market leading bond deal with a 5.8% fixed coupon, 7 year bullet repayment and an A- credit rating. 10.00% 9.00% 8.00% Refinancing 7.00% 6.00% Rate (%) Rate (%) 5.00% ECGD Baht Bond #1 Baht Bond #1 Baht Bond #1 4.00% Baht Bond #2 Baht Bond #2 Baht Bond #2 NIB - Floating Yankee 2006 Yankee 2006 Yankee 2006 - - f 3.00% Floating New Syndicated Loans Fixed Yankee 2006 Yankee 2006 Yankee 2006 - - - Fixed 2.00% Refinancing 46% FEC FEC FEC Baht Bond #3 54% 1.00% Syndicated Loans #1 Syndicated Loans #2 0.00% 1 2 3 4 5 6 7 THB Swap Rate THB Swap Rate Average Interest Rate = Average Interest Rate Average Interest Rate Average Interest Rate = 5 = = 5. 5 5 . .39 . 39 39 39 % % % ( % (as of the end of Oct ( ( as of the end of Oct as of the end of Oct as of the end of Oct. . . . 02 02 02 02) ) ) ) Investor Relations: IR@DTAC.co.th Tel. (66) 2 202-8000 ext. 30964-5, 30968 Page14
Financial Summary * Net debt/Equity end of the period ** Net debt/EBITDA (rolling back 3 quarters) *** EBITDA/Interest expense for the period Investor Relations: IR@DTAC.co.th Page15 Tel. (66) 2 202-8000 ext. 30964-5, 30968
Debt Profile Weighted average cost of fund at the end of September 2002 was 6.03%. � Note : (A) = Amortized repayment (B) = Bullet repayment Investor Relations: IR@DTAC.co.th Page16 Tel. (66) 2 202-8000 ext. 30964-5, 30968
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