1 2Q18 MD&A Advanced Info Service Plc. Executive Summary AIS continued to deliver revenue growth in all segments. In 2Q18, core service revenue, which excluded IC and equipment rental, was Bt33,464mn

-year guidance, underpinned by improved 4G network and larger AIS Fibre coverage. QoQ, revenue slightly dropped by 0.8%. The handset campaigns were more selective, resulting in lower marketing expense

. Handset campaigns were more selective with limited discounts, resulting in marketing expenses subsiding from 10.5% to 6.3% to total revenue. Network OPEX rose 36% YoY mainly from fully recognized payment

13.3% Trade & other receivables 345 17.2% 261 12.9% Building and equipment 471 23.4% 508 25.1% Goodwill and Intangible assets 710 35.3% 710 35.1% Other assets 282 14.0% 275 13.6% Total assets 2,011 100.0

operating result – Relative to last year quarter’s, Loss Ratio had dropped by 8.64% (From 67.87% to 59.23%). Underwriting had been more selective. Sales associated with high risk clients had been monitored

% QoQ due to 4G network investment.  Network OPEX was Bt5,051mn, increasing 23% YoY as we started TOT partnership to utilize spectrum and equipment late last year. Excluding the payment to TOT (Bt2,375mn

added value offering such as speed boost, equipment upgrade, service quality and premium contents. Although the operators were able to retained higher starting price point of Bt399/month, deep discount

. Integrated operators had increasingly emphasized on convergence offerings and value-added services such as speed boost, equipment upgrades and contents to differentiate and uplift revenue. FY20 Operational

home while the entry plan remained stable around Bt400. The operators mainly focused on value-added services such as speed boost, equipment upgrade, service quality and VDO contents. AIS Fibre focused on

4.1% of service revenue. • Depreciation & amortization was Bt12,783mn, decreasing -1.4% YoY and -1.4% QoQ due to fully depreciating of some 3G equipment, while AIS continued investing to expand 5G