9M 2008 Results

9M 2008 ResultsDumrong Kasemset, Ph.D.Executive ChairmanTHAICOM PLC.

November 12, 2008

2

Disclaimer

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

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Agenda

1. Group Financial Highlights

2. Business and Financial Review

– Thaicom

– CamShin

– Laos Telecommunications

– Other Associate and Subsidiary Businesses

4

Group Financial Highlights

5

Financial Headlines (9M/08 vs 9M/07)

Increase in sales and service income +10% (or +482 M฿) in Q3/08, driven by growth of IPSTAR

Increase in EBITDA EBITDA growth of Baht 228 million from robust increase in sales and service income

Sharp drop in net income: - 3,313 M฿ Gain on sales of investment of 5,127 M

฿ in Q3/07

In M฿

5,291

4,809

9M07 9M08

3,197

-116

9M07 9M08

1,748

1,976

9M07 9M08

+228 M฿

+482 M฿

-3,313 M฿

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Revenue Contribution by Business Segment

Sales and service revenues (in M฿)

9M07 9M08 % YoY

Conventional Satellite Services 1,680 1,713 2.0%

IPSTAR Services 1,177 1,826 55.1%

Telephone Services 1,809 1,363 -24.7%

Internet and Media Services 143 389 172.0%

Total 4,809 5,291 10.0%

4,809 +33

+649

-446

+246 5,291

9M07 Conventional IPSTAR Telephone Internet &Media

9M08

Caused by the new investment proportion (51%) after the sale of

49% shares in SHEN to AMH in Q3/07

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Operating cash Contribution (EBITDA) by Business Segment

EBITDA Margin

60%

48%

36%

60%

48%

8%

37%

-17%

50%

14%

Conventional IPSTAR Telephone Internet andMedia

Company

9M07 9M08

Unit : Million Baht 9M07 9M08 % YoY

EBITDAConventional 1,009 1,025 1.6%IPSTAR (203) 264 n.m.Telephone 870 657 -24.5%Internet and Media 71 30 -58.0%

Total EBITDA 1,748 1,976 13.1%

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Financial Position – 9M08

Liabilities, 13,417 ,

22%

Equity, 16,684 ,

28%

Assets* , 27,672 ,

46%

Cash, 2,429 , 4%

Q308 Ending Cash decreased from annual corporate income tax.

Q308

MBt

Q407

MBt

* Exclude Cash

Equity, 16,672 ,

29%


21%Assets*, 26,889 ,

47%

Cash, 1,642 , 3%

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Business and Financial Review

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Conventional Satellite Business

• Conventional contract backlog was 251.9 MUSD• Thaicom secured 11 new transponder leasing contracts

and video broadcasting service

contracts• Indochina and South Asia

market had steady growth in video

service• New Broadcasting Law and

strong growth in content aggregator

and content owner with result in

more demand of C and Ku

transponder in Thailand• Low-cost IRD have stimulated

the demand for bandwidth• Increase in System Integration sale

70%

85%

67%

100%

0%

67%

0 0.2 0.4 0.6 0.8 1 1.2

Thaicom 1

Thaicom 2

Thaicom 5C KU

Conventional Satellite Transponder Breakdown

Conventional Satellite Utilization

Telecom, 31.4%

Internet, 4.4%

Broadcast, 64.2%

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Thailand

•Completed delivery of 15,500 User Terminals to TOT in the first 9 months of 2008

•Implementing joint marketing campaign with TOT in Q4’08 to accelerate User Terminal deployment.

India•The two Gateways are in construction phase at BSNL's sites with goal to complete by year's end.

China•Pursuing provincial telco model and, in the initial phase, focusing on Sichuan and Hainan provinces deployments for broadband, rural telephone and mobile backhaul services.

IPSTAR Business

IPSTAR Business

Australia• Five IPSTAR Service Providers ( APN, Broadband Wireless Skymesh,

Westnet, Westwic) were successfully granted the Australian Broad band Guarantee (ABG) from the Australian government, a subsidy

scheme to deploy broadband to unserved and underserved markets.

• Average deployment rate for first 3 quarters of 2008: 2,100 subscribers/month

New Zealand• Launched the new retail package named “Rocket Broadband”

starting at NZD 49.95/month (Bht 1,000) in June 08 and observed a 2.5 times jump in subscriber uptake

• Average deployment rate for Rocket Broadband: 500 subscribers/month

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IPSTAR BusinessThe Philippines• Gateway construction completed and officially inaugurated the IPSTAR

service on 6 Nov 08 in Manila.• Launched the “IPSTAR BigSky” retail package starting at 2,300 pesos/month

(Bht 1,650) targeting consumers and SMEs nationwide.

Malaysia• Partnering with Time DotCom for gateway services, landing and as a non-

exclusive Service Provider. • Deploying community broadband and voice services to rubber plantations

through the Malaysian government’s FELDA* and FELCRA* agencies.• Launching IPSTAR retail packages through Service Providers starting at 268

ringgits/month (Bht 2,600) targeting SMEs nationwide.

Indonesia• Gateway construction in process and commercial services planned for Dec

08

13* FELDA: Federal Land Development Authority. FELCA: Federal Land Consolidation & Rehabilitation

Authority

IPSTAR BusinessKorea• Gateway construction completed and have been in commercial

operations since Sep 08• Signed 30 Mbps bandwidth contract for DVB broadcast services• Due to its single beam nationwide coverage, IPSTAR will focus on

DVB broadcasting, HD cinema content distribution, SNG and back-up services

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15

Average Accumulative UTs vs. Monthly BW ARPU

150,978147,284

136,400

121,686

106,092

94,67991,350

85,069

76,51370,015

63,202

52,524

42,70740,005

14.2514.9114.6114.85

15.67

16.8716.3415.68

17.3717.8517.4218.38

21.3621.04

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08

Avg. Accumulative UTs

$0

$5

$10

$15

$20

$25

$30

BW ARPU (USD/ UT/ Month)

Avg. Accumulative UTs

BW ARPU (USD/ UT)

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IPA Financial Results – 9M/08

Operating Results

Financial Position

EBIT = Sales and service revenue – Cost – SGA – Directors’ remuneration

Thousand AUD

Assets, 26,953 ,

50%


24%

Equity, 14,099 ,

26%

Summary income statement in Thousand AUD

9M07 9M08 %YoY

Sales & Service Revenues 20,246 28,209 39.3%

Gross Profit 3,991 10,976 175.0%

EBIT 2,032 7,663 277.1%

D&A 509 895 75.8%

EBITDA 2,541 8,558 236.8%

Net Profit 2,969 6,701 125.6%

Margin (%)

20%

10%13%

15%

39%

27%30%

24%

GROSS EBIT EBITDA NET PROFIT

9M07 9M08

'

190423/ /17

IPSTAR Commercial Rollout:10 Countries Commercial Deployed using 13 Gateways

= Gateways Completed

= Gateways in Progress

= Gateways Planned

In Service

Australia (2) Vietnam

Cambodia Myanmar

China (3) New Zealand

Thailand Korea

Malaysia The Philippines

By 2008

India (2) Indonesia

By 2009

Taiwan Japan

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18

Deployment by Region (by # User Terminals)

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Application Analysis

[Percentage by Bandwidth] [Percentage by User Terminals]

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IPSTAR Customer Segment Analysis

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Telephone Business in Cambodia

•As end of Q3/08, CamShin had 719,573 telephone subscribers, an increased of 62% as compared with Q3/07.

•The total revenue in Q3/08 increased 55% as compared with Q3/07, due to the growth of telephone subscribers especially prepaid mobile phone subscribers.

•330 BTS of Phase 9 had been completed, resulting the total of 707 sites on service.

Market and Subscriber Growth - CamShin

Camshin mobile subscribers (+63% YoY)

Camshin fixed-line subscribers (-7.7% YoY)

63% market growth YoY

5,050 5,0994,661

0

2,000

4,000

6,000

8,000

Q307 Q208 Q308

439,849

568,636714,912

0

300,000

600,000

900,000

Q307 Q208 Q3081568K

2173K

2556K

Q307 Q208 Q308

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CamShin Financial Results – 9M/08Average Exchange Rate 9M08: USD1 = 32.8799

BahtOperating Results

Financial Position

EBIT = Sales and service revenue – Concession fee – Cost – SGA – Directors’ remuneration

n.m. = Not meaningful

Margin (%)

33%

15%

30%

9%

34%

22%

35%

17%


9M07 9M08

Thousand $

Assets, 140,708 ,

50%


34%

Equity, 44,845 ,

16%

Summary income statement in Thousand USD

9M07 9M08 %YoY


Gross Profit 11,390 18,092 58.8%

EBIT 5,242 11,603 121.3%

D&A 5,171 6,846 32.4%

EBITDA 10,413 18,449 77.2%

Net Profit 2,945 8,885 201.7%

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Telephone Business in Lao PDR

• At the end of Q3/08, LTC had 894,259 subscribers, an increase of 22%, as compared with Q3/07.

• Commercially launch the first 3G Mobile system on October 17, 2008 on the first phase covering Vientiane and will expand to provincial areas in 2009.

• Completed Phase 14 GSM expansion 229 BTS, 579 TRX and 65 new sites. The remaining of 42 new sites expects to be completed by December, 2008 and 30 new sites in very remote area expects to be completed by February, 2009.

• Plan to expand internet bandwidth with VDC, Vietnam from 34 Mb to STM-1(155 Mb).

• EDGE and GPRS are on service nationwide.

Market and Subscriber Growth - LTC

31% market growth YoY

LTC fixed-line subscribers (+5% YoY)

LTC mobile subscribers (+24% YoY)

648,469768,097 806,348

0

300,000

600,000

900,000

1,200,000

Q307 Q208 Q308

83,668 87,274 87,911

0

30,000

60,000

90,000

120,000

Q307 Q208 Q308

1057K

1288K

1389K

Q307 Q208 Q308

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LTC Financial Results – 9M/08

Operating Results

Financial Position

EBIT = Sales and service revenue – Concession fee – Cost – SGA – Directors’ remuneration

n.m. = Not meaningful

Margin (% )68%

52%

75%

42%

67%

54%

22%

76%


9M07 9M08

Summary income statement in Thousand USD

9M07 9M08 %YoY


Gross Profit 35,853 43,738 22.0%

EBIT 27,568 34,881 26.5%

D&A 11,996 14,449 20.5%

EBITDA 39,564 49,330 24.7%

Net Profit 22,088 29,046 31.5%K US$

Assets, 169,847,

50%

Liabilities, 31,668,

9%

Equity, 138,180,

41%

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Internet and Media Business

•As at the end of Q3/08, accumulated DTV sales volume was 295,842 sets, up 71,079 sets from the end of Q2/08.

•Revenue from the Internet access and media business in Q3/08 was Baht 150 million, an increase of Baht 88 million or 141.9% from Baht 62 million in Q3/07.

•CSL expanded customer base in business or corporate segments which have lots of potential to continuously grow in the industry.

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DTV Service Financial Results – 9M/08

Operating Results

Financial Position

EBIT = Sales and service revenue – Cost – SGA – Directors’ remuneration

Summary income statement in Million Baht

9M07 9M08 %YoY

Sales & Service Revenues 168 333 97.8%

Gross Profit 12 53 339.7%

EBIT (7) 12 276.0%

D&A 5 8 53.8%

EBITDA (2) 20 1317.8%

Net Profit 40 87 118.7%

Margin (%)

7%

24%

16%

26%

-4% -1%

4%6%


9M07 9M08

'

Assets, 896 , 50%

Liabilities, 494 , 28%

Equity, 402 , 22%

M฿

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Accumulative DTV sales volume

Accumulative DTV

114,622 126,772145,762

167,614

201,114224,763

245,685268,371

295,842

101,167

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

9M 2008 Results

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