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THAICOM Public Company Limited MACQUARIE ASEAN CORPORATE DAY, LONDON 23-24 April, 2013 Suphajee Suthumpun Chairman of the Executive Committee and CEO
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Page 1: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

THAICOM Public Company Limited

MACQUARIE ASEAN CORPORATE DAY, LONDON23-24 April, 2013

Suphajee SuthumpunChairman of the Executive Committee and CEO

Page 2: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Disclaimer

This document contains certain forward-looking statements. They refer to futureevents and to the future financial performance of the Companies. Forward-lookingstatements generally can be identified by the use of forward-looking terminologysuch as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe” or“continue”. Although the Companies believe that the expectations reflected in suchforward-looking statements are reasonable at this time, it is not intend to giveassurance that such expectations will prove to be correct. Given these uncertainties,assurance that such expectations will prove to be correct. Given these uncertainties,readers are cautioned not to place undue reliance on such forward-lookingstatements.

218-Apr-13

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Our Vision: “To be a Leading Asian Satellite Operator”

318-Apr-13

Page 4: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Our Company• Thaicom Public Company Limited (formerly named Shin Satellite) was founded on 7th

November 1991, part of Shin Corporation (INTOUCH Group)

• His Majesty King Bhumibol Adulyadej of Thailand graciously named the first national communications satellite, “THAICOM” which stands for “Thai Communications”.

His Majesty King Bhumibol Adulyadej of Thailand officially opened the Thaicom Satellite Station on 17th December 1991.

418-Apr-13

Page 5: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Shin Corporation Plc 1),2)

Aspen Holdings Ltd. (Temasek Holdings)

41.62%Cedar Holdings Ltd.

13.35%

40.45% 41.14% 52.92% 99.96% 99.99%

Shareholding Structure

Advanced Info Service Plc 2)

THAICOM Plc 2) ITV Plc 2) Matchbox Co., Ltd.

I.T. Applications and Services Co.,

Ltd.

DTV Service Co., Ltd. 99.99% Shennington Investments Pte Ltd. 51% 1)

Cambodian DTV Network Ltd. 100%

CS LoxInfo Plc 2) 42.07% IPSTAR Co., Ltd. 99.96%1) Holding Company2) Listed Company on the Stock Exchange of Thailand

518-Apr-13

Page 6: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Our Business

Broadband Satellite

Conventional Satellite

Regional Mobile Phone

Internet and Media

618-Apr-13

Page 7: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Our Satellite Fleet

Thaicom 1Launched: 1993De-orbited: 2010

Thaicom 4 Thaicom 5Thaicom 2Launched: 1994De-orbited: 2010

Thaicom 3Launched: 1997De-orbited: 2006

Thaicom 4Launched: 2005

Thaicom 5Launched: 2006

Page 8: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

4th Largest Satellite Operator Globally (1st in Asia Pacific)4th Largest Satellite Operator Globally (1st in Asia Pacific)

TC-6

Our Capacity

TC-6TC-7

818-Apr-13

Page 9: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

T4 T5 T6* T7*119.5°E 78.5°E 78.5°E 120°EC Ku C Ku C Ku C Ku

Indochina - -

T5T5

T5T5

T5T5T5T5 T6T6

T7T7T5T5

T4T4

T5T5T4T4

Our Satellite Footprints

Complement each Other across 4 ContinentsComplement each Other across 4 Continents

SEA - - - - -South Asia - - - - -North Asia - - - - - -Australasia - - - - -ME, Africa - - - - - -Remark: *new satellites

T6T6

T5T5

T5T5

T5T5 T6T6

T7T7

T7T7

T4T4

T5T5 T6T6

T4T4

T4T4

T4T4

918-Apr-13

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Our Positioning: Unique Value Proposition

Broadcast Services Broadband Services

� Reach 1.5 billion viewers in Indochina & South Asia

� 460+ neighborhood channels from Indochina & South Asia on TC-5

� End-2-end, Turn-key solutions� 20 years of track record of quality

service

� The first and only High Throughput Satellite (HTS) satellite in Asia Pacific

� Most experienced broadband satellite operator in the world

� Presence and landing rights in 13 countries in Asia Pacific with 10 regional offices

� Most cost effective broadband satellite solution in the target market

1018-Apr-13

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Our Services: Broadcast

1118-Apr-13

Page 12: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Asia’s “Hot Bird” for Satellite TV PlatformAsia’s “Hot Bird” for Satellite TV Platform

• Cover 120+ countries in Asia, Australia, Africa & Europe

• 460+ TV channels (24 HD channels)

Conventional Satellite: THAICOM-5 @78.5E

(24 HD channels)• >14 million households

in Thailand• No.1 in Thailand and

Indochina countries• One of the key players

in South Asia

and more…

1218-Apr-13

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Conventional Satellite: Key Market Segments

Broadcasting“National TV Broadcast”

“Direct-to-Home”“Video Distribution”“Distance Learning”

“HDTV”78.5°E – the prime orbital slot

for Satellite TV platform

Broadcasting“National TV Broadcast”

“Direct-to-Home”“Video Distribution”“Distance Learning”

“HDTV”78.5°E – the prime orbital slot

for Satellite TV platform

Telecommunication“Cellular Backhaul”

“VSAT”“Government

Communications”

Telecommunication“Cellular Backhaul”

“VSAT”“Government

Communications”

1318-Apr-13

Page 14: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

THAICOM-6 @78.5E Marketing plan

Broadcasting

BroadcastingTeleport Partners

1st African

Customer

Telecommunication

1418-Apr-13

Page 15: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

THAICOM-7 @120E Marketing Plan

Telecommunication

Broadcasting

1518-Apr-13

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Our Services: Broadband

1618-Apr-13

Page 17: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

The first and only High Throughput Satellite (HTS) in Asia PacificThe first and only High Throughput Satellite (HTS) in Asia Pacific

Presence in 13 Countries & 17 GatewaysPresence in 13 Countries & 17 Gateways

Broadband Satellite: THAICOM-4 (IPSTAR) @119.5E

1718-Apr-13

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Telco Backhaul & Telco Backhaul & Government/USO*Government/USO* Disaster Disaster

IPSTAR Key Market Segments

Telco Backhaul & Enterprise

“Cellular Backhaul”“Femtocell”

“Rural Telephony” “Corporate Networks”

Telco Backhaul & Enterprise

“Cellular Backhaul”“Femtocell”

“Rural Telephony” “Corporate Networks”

Government/USO*

Program & Retail Market

“e-Government”“Distance Learning”

“National Broadband Network”

(*Universal Service Obligation)

Government/USO*

Program & Retail Market

“e-Government”“Distance Learning”

“National Broadband Network”

(*Universal Service Obligation)

Disaster Management

“Disaster Recovery Communications”

“Emergency Communications”

Disaster Management

“Disaster Recovery Communications”

“Emergency Communications”

1818-Apr-13

Page 19: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Thaicom18%

ViaSat26%

NSR Report, Oct 2011

Thaicom24%

ViaSat16%

Hughes

NSR Report, Sep 2012

Number 1 in Global Market Share of Leased High Throughput Satellite (HTS) Capacity by Northern Sky Research

Number 1 in Global Market Share of Leased High Throughput Satellite (HTS) Capacity by Northern Sky Research

Our Market Share

Remarks: Expect a close race with ViaSat in 2012 ranking as ViaSat-1 satellite has become commercially operational in the US since Jan 2012

Hughes11%

Ciel Satellite Communications

23%

Telesat19%

Others3%

Hughes13%

Ciel Satellite Communications

13%Others

34%

Source: Northern Sky Research

1918-Apr-13

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Our PerformanceOur Performance

2018-Apr-13

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Overall PerformanceTHCOM share performance relative to Thailand SET % Growth 2008 – 2012

Core satellite business contribution to revenue is increasing

% Revenue break up 2008 vs. 2012:

Internet & Media 3.9%

Satellite86.4%

Telephone*9.7%2012

242 MUSD

THCOM ↑ 189%

SET ↑ 84.6%SET Index: 1,560.98

THCOM Share Performance:

Overview

*As at 12 April, 20131USD = 29.10 THB

2118-Apr-13

Share price*: 34 Bht or ̴ 1.17 USDDiluted Shares 1.096 billion

Outstanding: Market Cap: 36.99 billion Bht or ̴1.27 billion USDBV/share 12.96 Bht or ̴ 0.43 USDPBV 2.60 Satellite

79.7%

Telephone*11.5%

Internet & Media 8.8%

2008191MUSD

* Excluding revenues from discontinued operation (Mfone)

Page 22: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

The 1st year with positive net profit from operations in 5 years

Consolidated RevenuesUnit: MUSD

Revenues grew 9.7% in Y2012 mainly from Satellite business

191 192 195 220

242

2008 2009 2010 2011 2012

-712-471

-789-490

174

(0.02)(0.014)

(0.024)(0.014)

0.005

EPS (THB)

Net ProfitUnit: MUSD

Net Profit significantly grew 136% in Y2012

2008 2009 2010 2011 2012

Dividend paid 0.013 USD/share, or 253% to conso. Net Profit

-23.7

-15.7

-26.5

-16.3

5.8

EPS (USD)

Page 23: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Strong Satellite performances from integrated strat egies

4,583 4,506 4,598

5,684 6,279

50% 52% 49%46%

46%

Conventional

Satellite RevenuesUnit: MUSD

152.76 150.2 153.26

189.46209.30

2318-Apr-13

50% 48% 51% 54% 54%

2008 2009 2010 2011 20122008 2009 2010 2011 2012IPSTAR

Conventional

1,418 1,635 1,5422,644 3,165

Satellite EBITDA

31% 36% 34% 47% 50%EBITDA Margin

88.1347.26 54.50 51.40

105.50

Page 24: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Consolidated CF 2010 2011 2012CF from Operating 61.16 101.26 116.96CF from Investing (19.03) (78.96) (62.36)

16% Growth YoY in CF from Operations

Cash balance remains good on continuing strong operational performance

D/E Ratio at 0.51x

Unit: MUSD

Equity474.66

CF from Investing (19.03) (78.96) (62.36)CF from Financing (26.2) 31.03 (74.23)Cash Ending 42.36 95.53 75.60

24

* Exclude Cash** Exclude Interest-Bearing Debt

18-Apr-13

Note: The debenture of 110 MUSD was paid entirely in November 2012.

Assets*784.80

Cash75.60

Interest bearing debt

243.13

Liabilities**142.60

Page 25: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

[email protected]°E

TC-7@120°E

TC-9

TC-10

Our Future: Expand resource for future growth

[email protected]°E de-orbited

[email protected]°E de-orbited

@78.5°E

“Follow-on satellite systems to ensure long term viability” “Follow-on satellite systems to ensure long term viability”

TC-1A @120°E de-orbited

[email protected]°E

[email protected]°E

TC-8

2518-Apr-13

Page 26: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Appendix

2618-Apr-13

Page 27: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Our Vision

To be a Leading Asian Satellite Operator

2718-Apr-13

Page 28: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Our Mission

Sustain growth and return profit to shareholders

Core Theme for 2013Sustainable & Profitable Growth

Develop innovative solutions and new markets

Enhance company reputation among all stakeholders

Create a Great Workplace and High Performance Organization

2818-Apr-13

Page 29: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

THAICOM Teleport and DTH Center• Located at “Lad Lum Kaew, Pathumthani, Thailand” (since 1996)• The World’s first ISO 9000 certified operator for satellite and teleport services• Equipped with world class facilities

Our CapabilityNumber 7 in the World (2nd in Asia Pacific) in

2012 Fast Twenty Ranking by World Teleport AssociationNumber 7 in the World (2nd in Asia Pacific) in

2012 Fast Twenty Ranking by World Teleport Association

2918-Apr-13

Page 30: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Myanmar China Nepal India Pakistan

Sweden Vietnam

Japan Korea

Our Customers in 20+ Countries

Somaliland

Egypt Thailand

Malaysia Indonesia Australia New Zealand

Philippines

Cambodia

Laos Israel

Maldives

3018-Apr-13

Page 31: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Our Management System

Corporate Social ResponsibilityValue-based CSR

All key positions

Succession Plan

Organization Structure

Product-based to Functional-

based Corporate Culture

Talent Development

Professional & Managerial

Risk Management

Strategic Operational & Financial RisksCorporate

GovernanceTransparent &

Auditable

CultureHigh

Performance Organization

3118-Apr-13

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Our Strategies

BroadcastBroadband

Strategic PartnershipsStrategic Partnerships

Conventional FocusConventional Focus IPSTAR FocusIPSTAR Focus

Managed Services

Integrated-Solutions

EndEnd--toto--End ServicesEnd Services System IntegrationSystem Integration

3218-Apr-13

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Our Strategies: Long Term Plan

Vertical Integration

Upstream ExpansionUpstream Expansion Downstream ExpansionDownstream Expansion

Horizontal Integration

Core BusinessBroadcastBroadcast

BroadbandBroadband Integrated SolutionsIntegrated Solutions

Fleet ExpansionFleet Expansion

3318-Apr-13

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Broadcast Services

THAICOM (Conventional)

Production Studio/Uplink Station

1. TV Station (VHF/UHF)

3. Direct-to-Home (DTH)

2. Cable TV

3418-Apr-13

Page 35: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

IPSTAR Broadband Services

BSC RNC

Mobile Operator’s Core Network

THAICOM-4 (IPSTAR)

1. Mobile 2G/ 3G/ LTE/ Disaster

BTS

Femto/ Small Cell

Node B

IPSTAR GatewayHeadquarter

Internet

BSC: Base Station ControllerRNC: Radio Network ControllerBTS: Base Transceiver Station

2. Enterprise/ SME/ Home

3. Government/ Community/ School/ USO

3518-Apr-13

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Telephone Business

364/18/2013

Page 37: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Lao Telecom

Lao Mobile MarketAs of December 2012

• Maintain leadership with 44.2% market share

• Revenue grew 19% YoY from increased voice and data usage, with improved ARPU

• NI grew 117%, while EBITDA grew 26%

• Launched 4G in November to serve ASEAN Summit 2012 by providing 20 sites in Vientaine Capital

• Dealer network improved and strengthened considerably

2012 Results

2013 Moving Forward

LTC 44.2% 2.75 mil. 2013 Moving Forward

• Continued focus on dealer network to ensure quality of service and improved distribution

• Strengthen brand perception and recognition through segment strategies

• Focus on provincial communities to protect our market and regain subscribers

• Focus on value added service with enriched data content and applications

• Improve network infrastructure and blind spot areas

• Customer-centric: enhance customer experience

UNITEL36.1%

ETL14.4%

BEELINE5.3%

44.2% 2.75 mil. Subscribers

3718-Apr-13

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Internet and Media Business

384/18/2013

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DTV – 2012 Results

D-KHOOM Plus Box

Launched new D-Khoom Plus box• Lower price to compete with other players

• To match untapped market demand

DTV HD BoxStimulated HDTV market – 24 HD Channels• Launched DTV-HD1 Box by bundling with UEFA

EURO 2012 Event

• Operated 2 HD own channels and 3 HD from GMM

• Expanded to new HD segment through AV-Shop and Modern trade

3918-Apr-13

Page 40: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

DTV – Strategic Moves

Hybrid Box

New HD boxes to meet all target• Launch low-cost HD box to drive and stimulate market

• Launch DTV-HD3 box with PVR function and DTV-Hybrid box for high-end HD market

HD3 with PVR

Getting ready for Thaicom-6 • Increase S2 programs for both SD and HD on DTV platform

• To prepare HD viewers base for Thaicom-6Hybrid Box

• To prepare HD viewers base for Thaicom-6

Expand dealer network to reach more customers• Through master dealer model and modern trade channel

Create synergy with content partners• To leverage eyeballs on DTV platform

• To work on a revenue sharing model i.e. pay-TV channels

Develop and implement Ratings box • To build a TV ratings network on Thaicom Satellite

4018-Apr-13

Page 41: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

CS Loxinfo PLC Business Operations

ICT Service(Internet computer & Telecom)

-Internet Access and Data Services

-Web Creation/Hosting-Internet Date Center

Classifieds & Advertising-Print advertising- Online shopping

- Yellow pages

Voice Info Services & Mobile

Content-Online entertainment

-Games

88.20 87.1390.03

94.7098.13

2008 2009 2010 2011 2012

% Revenue Contribution by SegmentRevenue Net Profit

-Internet Date Center - Yellow pages -Games-Mobile content

414/18/2013

5.369.56 12.43 13.16 13

Unit: MUSD

55 56 57 61 66

38 34 28 22 147 10 15 17 20

2008 2009 2010 2011 2012

ICT Classified & Ads Voice & Mobile

Page 42: THAICOM Public Company Limited...“Disaster Recovery Communications” ... • Equipped with world class facilities Our Capability Number 7 in the World (2 nd in Asia Pacific) in

Awards & Distinctions

IPSTAR Community Broadband Project in Vietnam won a silver medal at the

Asia Pacific ICT Awards (2008) Satellite Communications Service Provider of

the Year Award (2005) Industry Innovator Award for Technology Development and

Applications (2006) A finalist for the Corporate

Teleport Operator of the Year Award (2006)

Certificate of Excellence,Best investor relations by a Thai

company (2009) Corporate Social Responsibility Award from the World Teleport

Association (2011)

IPSTAR Receive an Awardfrom Japan’s MIC on Radio

Wave Day (2012)

Award (2006) THAICOM Teleport & DTH Center

ranked top 8 worldwide (2006)

Best SME Telecommunications Carrier/Service Provider

Award, IPSTAR Australia (2007) Satellite Executive of the Year

in Asia Pacific Award, Dr. Dumrong Kasemset (2007)

Association (2011) 2010/2011 Board of the Year Award for

Distinctive Practices(2012)

2012 Asia-Pacific CommunicationsDeal of the Year 2011 – Thaicom 6

424/18/2013


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