Q1 2004 Analyst Conference May 18, 2004

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Q1 2004 Analyst ConferenceMay 18, 2004
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Content

• Q1 2004 results
• Q1 2004 highlights
• TA Orange
• Financial summary
• Recap

3
First quarter 2004 highlights Financials

• TRUE on track to meet key financial milestones
• Profits from core wireline and data business for
  two consecutive quarters, before non-recurring
  items
• TA Orange EBITDA to cover interest expenses in
  2004
• Revenue and EBITDA up by 7.9 and 15.5
• EBITDA margin up 280 bps to 43.0
• PCT completed phase one debt restructuring with
  Bt 961 million net gain
• Free cash flows up 53.1, excluding TA Orange

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First quarter 2004 highlights Operations

• TA Orange added 168k subscribers to now 2 m
  total.
• Hi-speed Internet subscribers nearly tripled
• Internet business revenue up 237
• On-line game business increased subscriber base
  to 300k

5
First quarter 2004 highlights Operations

• Fixed line ARPU leveled off
• Flexible tariff launched in January, enhancing
  fixed line competitiveness
• PCT revenue and ARPU up quarter-on-quarter
• Good progress in realizing synergies within the
  group

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TA Orange growth in revenue contribution continues
TA Orange revenue contribution (22 of total
revenues)
Revenue (Bt mn)
ARPU (Bt)
Revenue represents 43.86 of TA Oranges total
revenue
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Spectacular growth for Broadband
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Data/Internet/Broadband revenue up 42 as
Internet business postsphenomenal 237 Q1 growth
Subscribers - Internet
Subscribers
DDN revenue excludes the revenue from network
rental to TA Orange
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Fixed line ARPU levels off
ARPU trends
Bt/Mth
10

• Wireline revenue up 3.6 from value added services

Wireline revenues (57 of total revenues)
Subscribers Fixed line telephone
Bt mn
Thousand lines
4,419
4,267
4,146
4,206
4,000
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Fixed-line flexible tariff

• Launched on 16 Jan, 2004
• Increasing fixed line revenue and enhancing
  competitiveness
• Providing valuable market knowledge for the new
  interconnection regime

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PCT revenue and ARPU increase by 2.5 and 8.8
quarter-on-quarter
Subscribers - PCT
PCT revenues (7 of total revenues)
Revenue (Bt mn)
ARPU (Bt)
Subscribers
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TelecomAsia has become ...
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• TA Orange

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TAO continues strong growthBased on quality of
network and customers new aggressive promotions
Net Adds
Sources TA Oranges report
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Customer base is now healthierReducing
postpaid customer churn, prepaid churn stable
Churn
Source Company reports
17
A quality customer basePostpaid ARPU up
slightly Prepaid ARPU down decreased
avg Blended ARPU in 1Q04 (Bt)
Sources Company reports and internal estimates
18
Market share (gross adds) increases
TAO market share of gross adds increases to 15
in Q1 2004. TAO resumes its aggressive strategy
in 2Q04 onward (e.g. JT 7 months bonus, All
Together Bonus)
1Q04 (actual)
2003
Sources companies reports, internal estimates.
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Photo World

• Complete suite of photo-based communication and
• community services
• Online photo album
• Upload or edit photos via Web and WAP portal
• Share private albums with friends
• Multiple access through photo terminal at Orange
  Shops

a data strategy to drive up market share
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TA Orange priorities going forward
Leverage True group synergies to increase TA
Orange revenues and subscribers
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All Together Bonuscampaign

• Every Baht TRUE customers spend entitles them to
  equivalent free TA Orange talk time
• The campaign is expected to increase TA Orange
  subscribers
• Limited impact on TA Orange ARPU
• The bonus does not cover the first min. which
  costs Bt 3
• The bonus can be used during off-peak hours only

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• Financial summary

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Consolidated profit and loss statements
(including TA Orange)
1Q04 4Q03 1Q03 QoQ YoY Revenue 7,333
7,334 6,794 0.0 7.9 EBITDA 3,155 3,177 2,7
31 -0.7 15.5 NIOGO (680) (1,066) (1,164)
36.2 41.6 Net profit (loss) 277 (2,336) (
1,028) NM NM CF from Operation 1,930 2,402
772 -19.7 150.1 FCF 1,273 764 (1,136)
66.7 212.0 NIOGO represents net income
(loss) from ongoing operations including share of
loss in associates but excluding non-recurring
items.
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Consolidated profit and loss statements
(excluding TA Orange)
1Q04 4Q03 1Q03 QoQ YoY Revenue 5,851
6,015 5,536 -2.7 5.7 EBITDA 3,085 3,021 2,
934 2.1 5.1 NIOGO (16) (453) (460)
96.4 96.4 Net profit (loss) 908 (1,767) (327)
NM NM CF from Operation 2,041
2,551 1,345 -20.0 51.7 FCF 1,565 1,668 1,
023 -6.1 53.1 NIOGO represents net
income (loss) from ongoing operations including
share of loss in associates but excluding
non-recurring items.
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Non - consolidated profit and loss statements
1Q04 4Q03 1Q03 QoQ YoY Revenue 5,021
5,318 4,915 -5.6 2.1 EBITDA 2,564 2,677 2,
426 -4.2 5.7 NIOGO 195 19 (180) 923.3
NM Net profit (loss) 277 (2,336) (1,028)
NM NM CF from Operation 1,607 1,916 1,204
-16.2 33.5 FCF 1,467 1,487 933
-1.3 57.2 NIOGO represents net income
(loss) from ongoing operations excluding share of
loss in associates and non-recurring items.

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• Core operating expense as a of revenue
  (including TA Orange) declined significantly

Core opex as a of revenues (Excluding
TA Orange)
Core opex as a of revenues (Including
TA Orange)
Core opex represents cash operating expense
less cost of sales and revenue sharing
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Profits for 2 consecutive quarters on a
stand-alone basis, before non-recurring items
EBITDA
Revenue
Bt mn
Bt mn
EBITDA
EBITDA Margin
NIOGO
Bt mn
Net Income from ongoing operations
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Consolidated results approaching break even
points (excluding TA Orange)
EBITDA
Bt mn
Revenue
Bt mn
EBITDA
EBITDA Margin
NIOGO
Bt mn
Net Income from ongoing operations
29
TA Orange break even at EBITDA for 2 consecutive
quarters
Revenue
Bt mn
1,518
1,436
1,310
1,290
1,301
1,176
767
575
132
The amounts represent 43.86 of TA Orange
EBITDA
Net Profit
Bt mn
Bt mn
Before amortization of negative goodwill
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AWC debt restructuring phase one completed in
March 04, reducing PCT debts by 34 or Baht 2.8
bn
AWCs Outstanding Debt
Debt haircut
Cash payment
Down 34
Outstanding Debt
31
Stronger balance sheet and cash flows (excluding
TA Orange)
Net debt/EBITDA
EBITDA/Interest coverage
Cash flow from operations
Free cash flow
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• Recap

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Recap

• TRUE on track to achieve key financial milestones
• TA Orange continues growth
• Broadband and Internet business growing rapidly -
  the trend will continue
• Phase one of PCT debt restructuring completed
• To focus on realizing revenue and cost synergies,
  growth.

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• QA

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Safe Harbor Statement
This presentation contains statement about
expected future events and financial results that
are forward-looking and subject to risks and
uncertainties. For those statements, we claim the
protection of the safe harbor for forward-looking
statements contained in the Private Securities
Litigation Reform Act of 1995 Discussion of
factors that may affect future results is
contained in our recent filings with the
Securities and Exchange Commission.
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Appendix
Slides () 1. Consolidated income statements
(excluding TA Orange) 37 2. Consolidated income
statements (Including TA Orange) 38 3.
Non-consolidated income statements 39 4. Balance
sheet 40 5. Cash flow statements 41 6. Debt
profile 42 7. Consolidated revenue profile by
segment (including TA Orange) 43 8. Consolidated
expense profile (Including TA Orange) 44
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Appendix 1 Consolidated income statements
(including TA Orange)
Normalized income statements
38
Appendix 2 Consolidated income statements
(excluding TA Orange)
Normalized income statements
39
Appendix 3 Non-consolidated income
statements
Normalized income statements
40
Appendix 4 Balance sheets
41
Appendix 5 Cash flow statement
42
Appendix 6 Debt Profile (excluding TA
Orange)
75,051
73,607
65,920
62,736
59,224
2000 2001 2002 2003 1Q04 Foreign debt 68 56
22 21 17
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Appendix 7 Consolidated revenue profile
44
Appendix 8 Consolidated expense profile
(including TA Orange)
45
being true together