Slides
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1Q25 FINANCIAL RESULT DISCLAIMER: Please be informed that this meeting is being recorded. By participating in this meeting, you have allowed AIS to collect, use, or disclose any personal data shared during this meeting by any means. Please do not copy, edit, or modify any content shared during this meeting for any purpose. Advanced Info Service Plc.
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BUSINESS HIGHLIGHTS
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3 Sales growing YoY driven by retail focus strategy boosted by government stimulus FBB expanded with upselling to uplift ARPU and quality subscriber acquisition Solid bottom line Driven by profitable revenue growth and efficient spending Enterprise growth with increased demand for both local & regional connectivity and cloud Mobile quality growth with superior network quality and ongoing value uplifting strategy 3 Thai economy growth with stimulus despite early signs of global volatility 1Q25 Maintaining business growth on a strong foundation 5.07 million Growing values with economy Strong core businesses growth with quality focus 4.3% YoY FBB Subscribers +12% Enterprise Revenue growth Mobile Revenue growth YoY 6.8% YoY
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4 28.0 30.1 1Q24 1Q25 Core Service Revenue (Bt bn) 39.4 41.9 1Q24 1Q25 Sale Revenue (Bt bn) 8.45 10.58 1Q24 1Q25 Net Profit (Bt bn) +6.3% YoY (3-5% Guidance) 1Q25 beat guidance with economic momentum ROIC 15% EBITDA Margin 53.4% Net Debt to EBITDA 1.8x Average Cost of Borrowing 3.0% 10.49 11.20 1Q24 1Q25 EBITDA (Bt bn) +6.8% YoY +7.4% YoY (3-5% Guidance) +25% YoY
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5 53,293 1,301 710 481 714 (188) 56,311 1Q24 Total Revenue Mobile FBB Enterprise non-mobile & others Sales Revenue Other Revenue 1Q25 Total Revenue EBITDA (Bt mn) Total Revenue increased YoY due to strong growth in all businesses, while decreasing QoQ from lower mobile revenue and device sales due to seasonality. Total revenue (Bt mn) NPAT (Bt mn) Total revenue (Bt bn) EBITDA (Bt bn) NPAT (Bt mn) (%YoY) (%YoY) 5.7% YoY -0.7% QoQ 7.4% YoY 3.8% QoQ 25% YoY 14% QoQ EBITDA improved YoY and QoQ driven by strong revenue growth and efficient spending. EBITDA Margin at 53.4% higher YoY due to profitable revenue and quality focus. NPAT improved YoY and QoQ from solid operating performance, lower depreciation cost, and lower finance cost. 1Q25: Performance sustained with continued focus on profitability 5.7% 2.6% 8.4% 7.4% 7.4% -2.9% 8.6% 25% 8,451 9,259 10,584 1Q24 4Q24 1Q25 28.0 29.0 30.1 1Q24 4Q24 1Q25 27,985 3,018 (512) (440) 30,051 1Q24 EBITDA Total Revenue Total cost ex.D&A SG&A and others 1Q25 EBITDA 8,451 2,066 435 (369) 10,584 1Q24 NPAT EBITDA D&A Interest, tax& others 1Q25 NPAT (%YoY)4.3% 10% 24% 6.8% -5.6% 5.7% 53.3 56.7 56.3 1Q24 4Q24 1Q25 Core service revenue 6.3% YoY
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6 AIS: Empowering lives and businesses towards exceptional experiences 74% of Total revenue 20% of Total revenue Core service revenue Sales revenue Bt31.6bn Bt7.8bn Bt1.8bn As of 1Q25 Growth 4.3% YoY As of 1Q25 Growth 10% YoY As of 1Q25 Growth 12% YoY Bt11.2bn As of 1Q25 Growth 6.8% YoY to core service revenue 75% to core service revenue 19% to core service revenue 4.3% to total revenue 20% Value-driven with Network leadership High-quality subs acquisition Connectivity services and digital solution Building digital adjacencies to engage customers Enhanced retail experience Mobile Fixed Broadband Enterprise non-mobile Digital Services Retail
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7 Item Guidance 1Q25 Rationale Core service revenue Around 3 - 5% Growth 6.3% • Focused on quality-driven expansion to enhance customer experience. • AIS maintains cautious outlook due to economic uncertainties. While continue the following strategy: • Mobile: grow with network quality leadership, effective 5G monetization, and enhanced value-added services and content. • Broadband: expand with new subscriber base in new areas and drive ARPU growth through innovative products and services beyond connectivity. • Enterprise: prioritize connectivity products and cloud services, leveraging strong customer relationships to introduce add-on solutions. EBITDA Around 3 - 5% Growth 7.4% • Grew with revenue expansion across services and product sales alongside ongoing integration benefits. • Expenses in FY25 will focus on continue advancing IT systems, modernizing network, and streamlining Broadband towards a unified operations by FY26. CAPEX (exclude spectrum) Approx. Bt26 - 27bn Bt 4.1 bn • FY25 places additional emphasis on modernization, integration costs, and underground cabling. • The allocation remains majority in mobile, following by broadband and the rest for enterprise & others. FY25 Guidance: Maintain guidance with cautious outlook Note: Guidance excludes the spectrum auction scenario and assumes the NT2100 deal remains in place until year-end.
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BUSINESS PERFORMANCE
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9 • Growth driven by high -quality subscriber expansion and ongoing value uplifting. • Prepaid contribution increment aligned with prepaid ARPU improvements. • Stricter personal identification measures for new subscriber align with royal decree on scam crime prevention and strategy to focus on quality. Net additional subscriber (‘000) Data Consumption • ARPU rose from higher -value packages and value-added services. Mobile revenue (Bt bn) Total subscriber (mn) Mobile ARPU (Bt/sub/month) Blended % Mobile Revenue Contribution 1Q251Q24 4.3% YoY -0.3% QoQ 2.0% YoY Flat QoQ Mobile: focused network leadership and value-driven strategy *Note: VOU excludes data from MMS sending from 3Q24 onwards 12.7 12.8 12.9 13.0 13.2 32.3 32.9 33.4 32.7 32.5 45.0 45.7 46.3 45.8 45.7 1Q24 2Q24 3Q24 4Q24 1Q25 Postpaid Prepaid Total 448 448 443 443 440 135 137 137 143 143 224 224 223 228 228 1Q24 2Q24 3Q24 4Q24 1Q25 Postpaid Prepaid Blended 18 64 118 98 153 390 580 495 (620) (198) 1Q24 2Q24 3Q24 4Q24 1Q25 Postpaid Prepaid 30.2 30.5 29.9 29.8 30.3 1Q24 2Q24 3Q24 4Q24 1Q25 10% 9.3% 4.2% 0.7% 0.3% %YoY Growth 30.3 30.8 31.0 31.7 31.6 1Q24 2Q24 3Q24 4Q24 1Q25 57% 43%Postpaid Prepaid 55% 45%
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10 Home Broadband: Driven by quality acquisition and ARPU uplift 799 Bath for 1Gbps/500Mbps + AIS PLAY size M 599 Bath for 500Mbps/500Mbps + AIS PLAY size S FBB ARPU (Baht per month) Revenue boosted by ARPU uplift and subs growth Subscribers acquisition with quality focus ARPU uplift from value-added and innovative products Enhancing customer value with premium packages Ending subscriber (mn)Revenue (Bt mn) %YoY growth 4.3% YoY 1.7% QoQ 73k 67k 63k 64k 60k 1Q24 2Q24 3Q24 4Q24 1Q25 7,118 7,284 7,437 7,602 7,828 1Q24 2Q24 3Q24 4Q24 1Q25 163%* 155%* 146%* 51%* 10% 496 501 505 509 518 1Q24 2Q24 3Q24 4Q24 1Q25 4.82 4.88 4.94 5.01 5.07 mn *Growth base effect in 2024 following 3BB acquisition
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11 Delivering exceptional experience with superior network quality Over 95% >99% >96% BKK EEC Nationwide Population coverage 5G network coverage 77 provinces Broadband coverage 5G Subscribers In 1Q25 12.7 mn Improved value through 5G adoption 5G ARPU uplift 10-15% Driving 5G adoption to boost ARPU Household coverage 20 mn
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12 Enterprise non-mobile: Driven by demand for connectivity services Revenue growth driven by EDS & Cloud Enterprise Data service (EDS) Cloud, Data center Cybersecurity, IOT & ICT solutions Strong digital infrastructure demand from local & regional clients %YoY revenue growthRevenue (Bt mn) %YoY growth 1,602 1,680 1,821 1,942 1,793 1Q24 2Q24 3Q24 4Q24 1Q25 20% 25% 20% 21% 12% 32% 36% 33% 32% 10% 1Q24 2Q24 3Q24 4Q24 1Q25 1.8% 10% 4.1% 32% 15% 1Q24 2Q24 3Q24 4Q24 1Q25 Private Network The Most Multi-Location in Thailand D A TA CENTER T h e Most Multi-lo catio n in Thailand SD-WAN AI Transformation Manufacturing Transportation & Logistics Property & Retail Public Sector SME 5G Ecosystem Intelligent Network & Cloud AI and Data Analytics Digital Platform & APIs Industry Transformation
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13 5.7% 5.5% -5.1% 5.5% 6.8% 4.7% 6.0% 5.6% 6.0% 4.3% 1Q24 2Q24 3Q24 4Q24 1Q25 Retail Sales: Growing with strategic focus and stimulus campaign Sales growth with enhanced focus in retail sales 10,490 7,868 8,232 11,486 11,204 1Q24 2Q24 3Q24 4Q24 1Q25 Revenue (Bt mn) %YoY growth Sales margin (%) Resilience margin amid tax incentive promotions Enhanced retail experience at shop Increase sell through flagship campaign
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APPENDIX
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15 Income statement (THB bn) 1Q25 Actual 1Q25 2100 MHz spectrum arrangement with NT 1Q25 excludes 2100 MHz arrangement Core service revenue 41.9 - 41.9 IC and NT partnership 3.2 2.1 1.1 Total revenue 56.3 2.1 54.2 Depreciation & Amortization 14.4 0.9 13.5 Network OPEX and NT partnership 5.8 2.1 3.7 Cost of service 24.2 3.0 21.2 Finance cost 2.1 0.01 2.1 PBT 13.1 (0.9) 14.0 Net Profit 10.6 0.7 11.3 EBITDA 30.0 - 30.0 Summary of Accounting Changes following the expiry of 2100MHz contract with National Telecom *The 2100 MHz contract with NT will expire on 3 August 2025.
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16 Financial Highlights Bt mn 1Q24 4Q24 1Q25 %YoY %QoQ Mobile revenue 30,339 31,726 31,640 4.3% -0.3% FBB revenue 7,118 7,602 7,828 10% 3.0% Other revenues 1,980 2,571 2,461 24% -4.3% Core service revenue 39,437 41,898 41,929 6.3% 0.1% IC and NT partnership 3,366 3,351 3,178 -5.6% -5.2% Service revenue 42,803 45,250 45,107 5.4% -0.3% SIM and device sales 10,490 11,486 11,204 6.8% -2.4% Total revenue 53,293 56,736 56,311 5.7% -0.7% Cost of service 24,881 24,800 24,242 -2.6% -2.2% SG&A 5,890 7,962 6,555 11% -18% EBITDA 27,985 28,958 30,051 7.4% 3.8% EBIT 12,744 13,607 15,245 29% 7.8% NPAT 8,451 9,259 10,584 20% 12% Sales margin 4.7% 6.0% 4.3% EBITDA margin 52.5% 51.0% 53.4% Operative profit margin 23.5% 23.2% 26.3% NPAT margin 15.9% 16.3% 18.8% *EBITDA definition is revised to include other income, finance income, share of profit, and Net foreign exchange gain (loss). Hence, the previous reported numbers have been restated with the new definition. **EBIT definition is revised to represent EBITDA less depreciation and amortization.
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17 Mobile Revenue Fixed broadband Revenue Enterprise and Other Revenues (Bt bn) (Bt bn) (Bt bn)4.3% YoY -0.3% QoQ 7.1 7.6 7.8 1Q24 4Q24 1Q25 10% YoY 3.0% QoQ 2.0 2.6 2.5 1Q24 4Q24 1Q25 24% YoY -4.3% QoQ • Maintained growth momentum YoY and QoQ from quality subs expansion and rising ARPU. • Growth YoY from ARPU improvements and quality focus. • Soften QoQ due to lower inter-roaming revenue. 30.3 31.7 31.6 1Q24 4Q24 1Q25 • Growing YoY led by EDS and cloud from digital transformation demand, boosted by higher roaming revenue from NT. • Declined QoQ from enterprise customer spending seasonality. IC and NT Partnership Net Sales & Margin Total Revenue 53.3 56.7 56.3 1Q24 4Q24 1Q25 497 688 478 1Q24 4Q24 1Q25 3.4 3.4 3.2 1Q24 4Q24 1Q25 (Bt bn) (Bt mn) (Bt bn) -5.6% YoY -5.2% QoQ 5.7% YoY -0.7% QoQ • Lower network traffic with NT and a lower interconnection charged. • Softened YoY and QoQ due to promotional campaign during tax incentive campaign. 4.7% 6.0% 4.3% % Sale margin -3.7% YoY -30% QoQ • Increasing YoY from growth in all businesses. • Soften QoQ from lower mobile revenue and device sales due to seasonality. 1Q25 Revenue Breakdown
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18 1Q25 Cost and Expense Breakdown 5.9 5.6 5.8 1Q24 4Q24 1Q25 1.6 1.5 1.6 1Q24 4Q24 1Q25 Regulatory (Bt bn) Depreciation & Amortization Network OPEX and NT partnership (Bt bn) (Bt bn) 3.5% YoY 9.9% QoQ -1.5% YoY 3.5% QoQ14.8 14.9 14.4 1Q24 4Q24 1Q25 -2.8% YoY -3.6% QoQ • Increasing QoQ due to one -time deduction of USO fees in 4Q24. • The regulatory fee as a percentage of core service revenue was at 3.9%. • Decreasing YoY and QoQ in-line with lower right- of-use and fully depreciated 3G assets. • Decreasing YoY due to lower NT partnership costs and lower FT rate. • Increasing QoQ due to cost related with network expansion. 2.3 2.2 2.1 1Q24 4Q24 1Q25 1.3 1.7 1.5 1Q24 4Q24 1Q25 Marketing expense (Bt bn) Admin & Others Finance cost (Bt bn) (Bt bn) 13% YoY -15% QoQ -9.5% YoY -5.5% QoQ4.6 6.2 5.1 1Q24 4Q24 1Q25 11% YoY -19% QoQ • Increasing YoY from incentives and campaigns in line with revenue growth. • Decreasing QoQ from high season in 4Q24. • The marketing expense was at 2.7% of total revenue. • Increasing YoY due to low base staff cost in 1Q24. • Decreasing QoQ from one-time provision expense in 4Q24. • The provision for bad debts as a percentage of postpaid and broadband revenue was at 1.9%. • Decreasing YoY and QoQ benefited from debt refinancing and loan repayments. • The average cost of borrowing was at 3% in 1Q25.
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19 341 91 432 39 49 105 102 47 66 25 35 18 124 105 88 63 1Q25 Cash Flow Balance Sheet Operating cash flow remained healthy to support ongoing CAPEX, spectrum payment, and dividend payment. Free cash flow after lease liabilities paid of Bt18bn with high a bility to provide returns to shareholder. Average finance costs for 1Q25 = 3% p.a. • Manage currency and interest rate risks with hedging instruments where applicable. • Maintain investment-grade credit ratings; • Fitch: national rating AAA (THA) • S&P: BBB+, outlook stable (Bt bn) 33.5 -0.6 -5.8 -4.7 -1.5 -4.0 -4.4 12.4 Operating Investing Financing Net cash Operating cash flow Income tax paid Cash Increased Finance cost Cash increase Cash decrease 0.6x 1.2x 0.5x 45% Net debt to EBITDA Interest bearing debt to Equity Current ratio Return on Equity Cash CAPEX (Bt bn) Equity cash spectrum license others spectrum license payable interest-bearing debt others retained earnings othersA/R PPE B/S 1Q25 A/P right of use lease liability Assets Liabilities Spectrum license Repayment of ST & LT borrowings Lease liabilities paid Healthy balance sheet and cash flow to support investment 1.8x Net debt to EBITDA incl. lease liabilities & spectrum (1Q25 ratios)
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Driving Long-term Sustainable Business Operation
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21 THRIVING IN A GREENER AND INCLUSIVE DIGITAL WORLD Drive Digital Economy Act on Climate Enable people and businesses to grow in the digital economy Shape a greener future of life for consumers and society Build inclusive and responsible digital access in our products & services Promote Digital Inclusion
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22 2024 SUSTAINABILITY HIGHLIGHTS DRIVE DIGITAL ECONOMY Enhancing cybersecurity system with the Zero-trust Model 3.8% of revenue generated from new digital service PROMOTE DIGITAL INCLUSION ACT ON CLIMATE AIS Academy provides training digital knowledge assessments for 61% of Employees CSA STAR Certification in personal data protection standard Expanded 5G coverage More than 95% population AUNJAI CYBER enhancing digital skill for 403,700 People Creating Thailand Cyber Wellness Index as a standard to build digital citizenship for Thais Installed and used alternative energy at 13,414 Sites Transforming operation into Hub of E-Waste With collaboration 235 organizations Expanding drop point to 2,700 locations nationwide Improving the socio-economic Condition 3.46 M People Reducing GHG emission by 42,108 tCO2e Digital Skills Cybersec & Data Privacy Digital Product & Services Social inclusion Emission Digital wellness Waste
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23 Sustainability Highlights: • ThaiBMA Best Bond Awards 2024 • Deal of the Year • Best Sustainability Bond – Telecom • Asset Triple A Sustainable Finance Awards 2025 • Best Green Loan – Telecom AIS Secures 3 Sustainability Awards In March 2025, AIS Group has achieved significant recognition of excellence in sustainable finance from two leading financial and investment institutions in Thailand and across Asia. For further detail regarding Cell Broadcast Service please visit : investor.ais.co.th/Sustainability award
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24 Sustainability Highlights: The function is available on: ▪ Android version 12 or higher ▪ iPhones with iOS 18 Emergency Broadcast Readiness AIS successfully completed lab testing of the Cell Broadcast emergency alert system on Android and iOS devices. For further detail regarding Cell Broadcast Service please visit : investor.ais.co.th/cell_broadcast
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25 1 Drive Digital Economy: Enable people and businesses to grow in the digital economy Digital Products and Services Drive digital services for both consumers & enterprises Data Privacy & Cybersecurity Maintain resiliency for data security and privacy Human Capital Development Nurture AIS human capital to support business growth Technology & Process improvement Capabilities & awareness building Certifications and Standards 3.8% of revenue generated from new digital services Assessed risks and monitored performance of third-party service providers with access to the Company’s critical data and computer system AIS Academy provides training to enhance the digital skills and capabilities of employees, covering of 61% 2024 Progress People and Culture Transformation Partnership Ecosystem Development Strengthening Network and IT Foundation Employee and Career Development Talent Attraction and Retention Employee Engagement Promoting Employee Well-being
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26 Social inclusion Enriching Thai people’s knowledge of total 3.46 million people in 2024 Digital wellness Empower digital citizenship by providing digital solutions and tools in total 0.79 million people Protection Tools Awareness Wisdom AUNJAI CYBER SyllabusDigital Health Check AIS Secure Net Promote Digital Inclusion: Build inclusive and responsible digital access 2 Teachers & Tutors General Workforce StudentsSchool People & Social
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27 Act on climate: Shape a greener future of life for consumers and society3 Waste Management Promote proper waste disposal 16,155 tCO2e Energy Efficiency Renewable energy Smart Solutions Smart Transportation & Logistics Waste separation at office building Expanding collaboration with public and private sector partners to strengthen its role as HUB of E-Waste Raising awareness Non-recyclable E-waste from network operation E-waste collected from customers 0% 163,396* pcs. Climate actions Manage our own network, operation and supply chain to be light to the environment 25,953 tCO2e *Data as of 1 Jan - 31 Dec 2024 Accumulated >760,000 pcs. + 4,586 sitesAdopted AI in processing and analyzing network utilization
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28 An Affirmation of Our Determination Towards Sustainable Business In 2024, AIS received a rating of AA in the MSCI ESG Rating Assessment FTSE 4 Good Index Series 10th Consecutive Years Global Level National Level Disclosure Standards In 2024, AIS received an ESG Risk Rating from Sustainalytics. Copyright ©2024 Sustainalytics. All rights reserved. 3 Global Awards from HR Asia 2024 • Best Companies to Work for in Asia 2024 • HR Asia DEI Award • HR Asia Sustainable Workplace Award Winner of WSIS Prizes 2024 in the category of Action Lines C7 E- Environment by ITU and UNDP ESG rating of AA or 89 out of 100 points from the Stock Exchange of Thailand ESG100 for 10th consecutive years by Thaipat Institute “Excellence”, based on Corporate Governance Report of Thai Listed Companies by Thai Institute of Directors Association AIS received Creative Social Impact in Creativity Equality Award from Creative Economy Agency (Public Organization) AIS received the Gold-Level Recognition for the Zero Workplace Accident Campaign from the Institute for Occupational Safety, Health, and Work Environment Promotion (Public Organization) Global Reporting Initiative Sustainability Accounting Standards Board Carbon Disclosure Project Task Force on Climate- Related Financial Disclosures
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IR website: https://investor.ais.co.th Email: investor@ais.co.th Sustainability website: https://sustainability.ais.co.th Email: AISSustainability@ais.co.th Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identifie d by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue” “plan” or other similar words. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements.