Dear Shareholders

Our vision to become the leading digital life service provider
2018 was a challenging year for AIS. The market growth of 3-4% was lower than the previous year, in large part due to the increasing competition and continued investment into networks and spectrum licenses. In addition to the technological challenges or digital disruptionห which encourage new approaches to business models, there were also innovative products which enable more consumers to be reached. In our position as the leading telecommunications company with over 41 million customers across the country, AIS has been able to influence the future of the industry through digital transformation for the last 4 years. AIS follows an organizational strategy which allows for more flexibility, by improving our organizational and employee processes. We intend to maintain our leadership in our core mobile business, continue expanding customer base of fixed broadband business, while finding new avenues of digital services to create profit. This is to strengthen our position as the leading digital life service provider and to develop innovative products and services which will benefit the Thai people.

Investment in the 4G network to keep us as the market leader of our core product
In the last year, the Thai telecommunications industry has completed the transition from a concessions system to a licensing system, which shall enable operators to invest more properly in the future of telecommunications in Thailand. As for AIS, continued quality of product and customer service remains the foundation of our service and was an important factor in our decision to win the bid for the 1800MHz frequency, which allows us to provide our customers with the widest spectrum bandwidth in the entire industry. Our continued investments to enhance the quality of our 4G network means that our customers can use the internet on their phone almost anywhere, with a 4G usability ratio of over 59% and more than 11GB of data consumed per person. Furthermore, our customers’ usage of our service has become more diverse, from no longer just using chat applications, to viewing content, making financial transactions on their phones, and trading goods through the various rising e-commerce platforms. AIS helps Thai people and the Thai economy by enabling quick and easy access to data and transactions to be processed on phones.

Developing new innovations in preparation for the 5G era
The growth cycle of 4G technology will continue for many more years, due to the increasing use of smartphones and the ever-important role of social media in our daily lives. However, in the next 2-3 years, Thailand will begin to use 5G technology, which will increase the capability of our infrastructure and pave the way for new ultramodern services, such as auto-driven cars, hologram media technology, and voice-controlled home devices. Over the last year, AIS has invested in our NB-IoT network and begun to test our services with many different enterprises. As a leader in infrastructure development, AIS realizes the importance for Thai companies to be aware of technological advancements. Our mission is to develop product innovations creatively and improve the skill of our staff in order to ensure that our services respond to the needs of a growing customer base. We will achieve this by working together with partners in research, technology, and service to become a center of information to be passed on to companies in other industries that wish to keep up to date with modern technology. This is performed parallel with AIS working closely and building a shared understanding with the state and the NBTC to ensure the regulation in the industry is fair and clear and will result in the maximum benefit for Thai society and the Thai economy.

Growth in the fixed broadband market and developing a digital platform for the future
Apart from maintaining our position as the leading mobile phone network provider, the combination of growth in fixed broadband under the brand AIS Fibre and the development of digital services is a key strategy for us to create new services for and relationships with our customers. AIS entering the fixed broadband market has pushed the industry to expand fibre optic networks to home internet users, which gives customers increased usability when accessing content. While the price point for the fixed broadband market is very competitive, AIS Fibre has grown by 42% in revenue in the last year, with more than 730,500 customers, and continues to underpin our goal to become a major player in this market. Our fibre broadband service not only improves household internet quality, but also allows customers to access other AIS’s services, such as our mobile service, video platform, or SmartHome service in the future, which will create a more connected and deeper relationship between AIS and our customers. As well as the aforementioned investments in network infrastructure, AIS has invested Baht 5 billion into two important businesses over the last year. Firstly, the acquisition of CS Loxinfo which will allow us to offer cloud and other ICT solutions to corporate companies, and secondly the investment in the Rabbit LINE Pay Joint Venture in order to expand the capabilities of mobile money. This is another key element of AIS’s strategy of seeking additional revenues and will allow for rapid growth in other markets by working closely with the leading companies in these other sectors.

Continued good governance and our responsibility to our investors
A key challenge for the coming year will be adapting to the continually changing digital age, with new types of businesses forming quickly, and endless opportunities that also bring increased risk for every company. As such, strategies on effective marketing are essential for us to maintain our foothold as the market leader as well as increasing our growth on the back of new opportunities. It is important to ensure that we have the appropriate cash-flow and overall capital to allow investment into our long-term future. AIS remains committed to operating our business with good governance by considering our stakeholders as a result of our business choices. This includes our individual customers, corporate clients, the communities in which we provide our networks, as well as partners who grow together with us. That said, AIS is determined to focus on adding value to the business sustainability considering economic, social, and environmental impacts. We have completed our 7th annual sustainability report, in which you can read further detail of the operating concepts. All in all, AIS has reported to make a net profit of Baht 29,682 million over the past year, or accounted for about 90 percent of the industry’s profit, with shareholder dividends maintained at no less than 70%. As such, the board of directors has decided to pay a dividend to AIS’s shareholders Baht 21,045 million for the year 2018.

Warm regards,

Kan Trakulhoon
Chairman of the Board of Directors

Somchai Lertsutiwong
Chief Executive Officer