True Move Inititaion July 08

D4
True Move may need to borrow or issue equity this year to
fund its 3G investments. We think this will constrain
capital appreciation and we initiate coverage on TRUETB
10.375% 13s with an Underweight recommendation.
True Move
True Leverage Play
Strong brand name True Move’s brand has become Thailand’s household
name. Its competitive advantage is its bundled services combining mobile
phone with broadband Internet and cable TV services. We believe True Move
will benefit from cross-selling opportunities with True Online and TrueVisions.
CP Group’s support CP’s capital injection indicates CP would offer financial
assistance in the future if needed.
Evolving regulation Court ordered to TOT to negotiate an interconnection
arrangement with DTAC, indicating Thai government support. We expect
interconnection to be a standard practice by year end. AIS’s extensive network
implies it can charge higher interconnection fees and benefit from the regime
(See Industry Outlook section).
3G capex funding risk Interconnection fees and slow net adds growth will
limit near-term EBITDA growth. We do not expect EBITDA to cover fixed
charges and 3G capex from 2009 to 2010. We believe True Move needs to
borrow or issue equity by year-end.
Bottom line Potential new supply for 3G funding limits near-term capital
appreciation, in our judgment, and we initiate coverage on TRUETB 10.375%
13s with an Underweight recommendation. Illiquidity prevents us from quoting
the price and, therefore, taking a view on TRUBETB 10.375% 14s.
Bond summary
7-July-08 weight
UST
offer
bp
ASW
offer
bp
YTM/W dur Mat(call) USD
mn
MDYs S&P Fitch
TRUETB 10.375% 13s Under 1,214 971 15.5 3.8 16-Dec-13 465 B1 B NR
Source: Bloomberg, ING
Telecommunications
Debt Markets
High Yield
Thailand Warut Promboon
Credit Analyst
Singapore (65) 6232 6031
Warut.Promboon@asia.ing.com
Initiating Coverage
7 July 2008
Financial Data (THB mn)
Yr to Dec 2007 1Q08
Total debt 28,596.3 26,413.9
Revenues 33,420.1 8,513.0
EBITDA 7,230.5 1,883.3
EBIT 2,305.5 683.3
Net income (1,575.3) (1,813.9)
_
Source: Company data, ING estimates
EBITDA Estimates vs Capex and
Fixed Charges
5,000
10,000
15,000
20,000
2007
2008
2009
2010
2011
2012
2013
THBmn
Principal repayments + Interest
expenses + Capex
EBITDA
Source: ING estimates
http://research.ing.com
SEE THE DISCLOSURES APPENDIX FOR IMPORTANT
DISCLOSURES AND ANALYST CERTIFICATION
Key Ratios
Yr to Dec 2007 1Q08
EBITDA/interest
coverage (x)
2.4 2.4
EBITDA/interest
coverage + capex (x)
0.6 0.6
Total debt/EBITDA
(x)
4.0 3.5
Total debt to total
capital (%)
96.1% 102.5%
_
B1/B
Moody’s/S&P Bloomberg
TRUETB
Underweight

2
True Move July 2008
Contents
Bond Analysis 3
– Recommendation...................................................................................................3
– Bond Structure .......................................................................................................4
Company Background 5
– Ownership and Management.................................................................................6
Operations 8
Credit Profile 10
Revenue and cost compositions............................................................................... 11
Operating Performance ............................................................................................ 12
Liquidity and Financial Leverage.............................................................................. 14
Capex plan ................................................................................................................ 16
Rating expectations .................................................................................................. 17
Peer Comparison...................................................................................................... 18
Industry Outlook 20
Telecom Regulations in Thailand ............................................................................. 22
– Regulatory Charges .............................................................................................23
Disclosures Appendix 27

3
True Move July 2008
Bond Analysis
Fig 1 Bonds summary
7-July-08
Portfolio
weight
UST
(bp)
ASW
(bp)
YTM/W
offer
Dur Mat(call) USD mn Moody’s S&P Fitch
TRUETB 10.75% 13s Underweight 1,214 971 15.5 3.8 16-Dec-13 465 B1 B NR
TRUETB 10.375% 14s Not rated 1-Aug-14 225 B1 B NR
Source: ING
Recommendation
We initiate coverage on TRUETB 10.75% 13 notes with an Underweight
recommendation. We believe True Move needs to borrow and/or issue equity by year-
end to fund its 2009 3G investments. Supply overhang limits capital appreciation
potential in 2008, in our view.
CP’s capital injection last December has alleviated True Move’s 2008 funding risk,
which we highlighted last October (“True Move: Loom Funding Risk,” October 5, 2007).
CAT’s approval of the 850MHz frequency allows True Move to operate a 3G service
and stay in the competition with AIS and DTAC, the top two mobile phone operators.
We would revisit our recommendation in the event True Move secured strategic
partner(s) and/or CP decides to inject capital into True Move. We view True Move as a
‘B+’ credit with a negative outlook and we believe additional debt will prompt Moody’s
to downgrade its rating to B2 from B1.
We consider True Move an integral part of CP Group, which we believe will not
relinquish control of True Move, especially not to creditors. CP Group’s THB 3 bn
capital injection supports our view. We expect True Move’s EBITDA from 2009-2010 to
fall short of covering fixed charges and capex and we believe True Move may need to
borrow. We believe CP’s support reduces near-term default risk. CAT’s permission for
True Move to operate a 3G service until 2018 has relieved investors’ concerns on the
expiring 2G concession in 2013. For investors with a horizon over 3 years we consider
TRUETB 13s 15.5% yield as attractive for a “B” credit.
TRUETB 13s trade 430bp outside the ‘B-‘industrial benchmark. Figure 2 shows
TRUTB 13s against Thailand’s high-yield USD corporate bonds (GSTEEL 10s and
ADAGRO 12s), Asia’s high-yield telecom USD bonds (ISATIJ 10s, ISATIJ 12s, EXCLIJ
13s, and ORTEEV 13s), and BOCEAN 12s which we consider another CP-related
issue. TRUETB 13s have traded as an outlier with a premium to its high-yield telecom
peers and its US industrial benchmarks with a similar rating (Fig 2). We single out
ORTEEV 13s as an outlier due to Pakistan’s heightened geopolitical risk.
Attractive carry for long-
term investors
We underweight TRUE
13s on near-term
headline risk

4
True Move July 2008
Fig 2 TRUETB 13s versus Peers
TRUETB 13
(B/B1)
EXCLIJ 13 (BB-
/Ba2)
BOCEAN 12
(B1/B+)
ISATIJ (bid)
curve (BB/Ba2)
GSTEEL 10
(B3/B-)
ADAGRO 12
(B3/B-)
ORTEEY 13
(B+/B3)
0
200
400
600
800
1000
1200
2010 2011 2012 2013 2014 2015
Maturity
ASWSpread(bp)
US
'B-'
'B'
'B+'
'BB+'
'BB'
'BB-'
Source: ING
We attribute the premium to corporate governance risk. We see the CP Group as a
successful conglomerate in Thailand but we believe investors require a yield premium
for transparency concerns in CP-related bonds. BOCEAN 12s (B1/B+) trade 550bp
above the US ‘B-‘industrial benchmark. Truba Alam Mannunggal Engineering (‘B’-rated
by S&P and Fitch), a CP-related entity, postponed its first USD bonds due to a lack of
investor interests despite an 18% yield. We expect the corporate governance premium
to persist unless True Move has an IPO and/or seeks strategic investors.
Bond Structure
True Move Company Ltd. (True Move) issued TRUETB 13s and 14s. Both bonds rank
pari passu with True Move’s other unsecured, unsubordinated debt. True Move’s
parent company, Bangkok Inter Teletech Public Company Limited (BITCO), and its
subsidiaries Song Dao Company Limited, Samut Prakan Media Corporation Company
Limited and True Distribution Sales Company Ltd., guarantee both bonds (Fig 2). True
Move used the proceeds to refinance 100% of the existing Baht-denominated term
loans from Thai financial institutions.
True Move could redeem the bonds at par plus a make-whole premium of the greater
of 101% or UST + 75 bp and could redeem up to 35% of the bonds at 110.375% prior
to August 1, 2010 for TRUETB 14s and 110.75% prior to December 16, 2009 for
TRUETB 13s, using equity issuance proceeds.
True Move and the guarantors have to cap the total debt-to-EBITDA1
ratio at 4.75x
until January 1, 2008, 4.5x from January 1, 2008 to January 1, 2009, 4.25x from
January 1, 2009 to January 1, 2010, 4.00x from January 1, 2010 to January 1, 2011,
and 3.75x on or after January 1, 2011. We note that the ratio must be positive,
indicating True Move must record a positive EBITDA. We estimate True Move’s total
debt to EBITDA at 3.5x in March. Management is considering borrowing a non-
recourse project finance loan to fund its 3G capex next year. We consider a non-
recourse loan as debt and we believe total debt to EBITDA will increase next year.
1
Debt of the parent company, True Move and the restricted subsidiaries to consolidated EBITDA of the parent. Debt
excludes shareholder loans and preference shares.
Senior unsecured
obligations…

5
True Move July 2008
Company Background
True Move was incorporated as a private company on August 1, 1994, under “Century
Unitech and Consultant Company Limited” which later became “Wireless
Communications Services (WCS). WCS changed its name to TA Orange Company in
February 2002 under a 51:49 joint venture between Chareon Pokphand[de] Group (CP
Group), Thailand’s largest business conglomerate, and Wirefree Services Belgium
S.A. (a direct subsidiary of Orange which is, in turn, a subsidiary of France
Telecom[cde]). TA Orange commenced full commercial services in March 2002 under
the “Orange” brand.
TA Orange changed its name to True Move Co. Ltd. in February 2006 after CP Group
gained a majority stake in September 2004 from Orange (See Ownership section). At
the same time, True Move Co. Ltd. rebranded from Orange to “True Move.”
Fig 3 True Move’s Corporate Structure (February 2008)
True Corporation Public
Company Limited
BITCO
(Parent guarantor)
True Move Company Ltd. Song Dao Company
Limited
(Subsidiary guarantor)
Samut Prakan Media
Corporation Company Limited
True Distribution
Sales Company Limited
AnyMobile, Inc
75.26%
99.9% 99.9% 99.9%
99.9%
55.0%
Charoen
Pokphand Group
23.92%
France Telecom
(Wirefree
Services Belgium)
0.82%
Source: Company data
Bangkok Inter Teletech Public Company Limited (BITCO), a Thailand-based company,
owns 93.4% of True Move, 99.9% of Song Dao Company Ltd. (Song Dao) and 99.9%
of, Samut Prakan Media Corporation Company Limited (SPMCC).
Song Dao is a collection agent and SPMC is an inactive company. BITCO obtained
98.8% of its revenues from True Move and its consolidated subsidiaries in 2006. Song
Dao and SPMCC accounted for 5.4% each of total assets in 2006.
True Corporation (True) is an integrated communications solutions provider in
Thailand. True consists of three core businesses: True Visions (Thailand’s largest pay-
TV provider), True Online (Thailand’s largest provider of dial-up and consumer
broadband Internet services), and True Move. Other businesses include True Money,
a mobile phone payment servicer, and True Life, a provider of digital content including
online games.

6
True Move July 2008
True, incorporated in November 1990, went public under its former name TelecomAsia
Corporation PCL in December 1993. TelecomAsia changed its name to True
Corporation in April 2004.
True’s strategy focuses on using its integrated communications platform by offering
bundled services for cable TV, broadband Internet, and mobile services. True reported
households using two or more True services increased to 1.56 mn in March, up from
1.19 mn in June 2007 and 0.9 mn in September 2006 (the previous two surveys).
True Move’s contribution to group revenues increased to 53% in 2007 (Fig 4) from
44% in 2006. True Move’s EBITDA was 37% of the group’s total in FY07 (Fig 5).
True’s voice revenues dropped to 64% of total revenues in FY07 from 68% in FY06
and 85% in FY05 as True Online’s broadband revenues grew at a CAGR of 49% a
year between FY05 and FY07.
We expect TrueVision’s, TrueOnline’s and True Move’s non-voice revenues to fuel
overall revenues and EBITDA growth in the near-term.
Fig 4 FY07 Revenue Breakdown by Business Unit Fig 5 FY07 EBITDA Breakdown by Business Unit*
True Online
33.2%
True Move
52.5%
True Visions
14.3%
True Online
49.9%
True Move
37.3%
True Visions
12.8%
Note: Revenues after eliminations. True Move revenues include
interconnection revenues
* Including inter-company EBITDA of 0.05% of total EBITDA
Ownership and Management
CP Group2
purchased a 97.5% stake in WCS in February 2000 through BITCO, True
Move’s immediate parent company. CP Group later sold 34% of BITCO to Wirefree
Services Belgium S.A. (a direct subsidiary of Orange, a subsidiary of France Telecom)
in September 2000. Orange increased its stake in BITCO to 49% in 2001, leaving CP
Group’s stake through TelecomAsia (renamed “True” in April 2004) and Charoen
Pokphand Group Co. Ltd. at 51%.
True's shareholding in True Move (via BITCO) increased from 43.6% in November
2002 to 43.9% in November 2003 , 82.9% in September 2004 (through a 39% stake
purchase from Orange), 93.4% in Sept 2006 and 98.2% in Nov 2007 before decreased
to 75.26% in Dec 2007 after CP’s capital injection.
2
Charoen Pokphand Group Co., Ltd. and related affiliates (e.g. Bangkok Telecom Holding Co., Ltd., Charoen
Pokphand Foods PCL, Bangkok Produce Merchandise PCL, Bangkok Agro-Industrial Products PCL, Charoen
Pokphand Northeastern PCL, Kasetphand Industry Co., Ltd., Charoen Pokphand IN-EX Co., Ltd., Unique Network
Co., Ltd., Wide Broad Cast Co., Ltd., C.P. Interfood (Thailand) Co., Ltd., Star Marketing Co., Ltd., Advance Pharma
Co., Ltd., and Golden Tower Trading Limited.)
CP owns 46.5%

7
True Move July 2008
CP Group injected THB 3 bn for six billion shares of BITCO in December 2007 and
increased its stake in BITCO to 23.9% from 0.76%. After the share issuance, True’s
and France Telecom’s ownership dropped to 75.3% and 0.8% from 98.2% and 1.07%,
respectively. CP Group, through a 30% stake in True and a 23.9% stake in BITCO,
effectively owns 46.5% of True Move’s total shares (Fig 6). True Move plans to use the
THB 3 bn capital injection for its network expansion this year.
Fig 6 True Move’s Effective Share Ownership (February 2008)
CP Group*
46.5%
Other True Corp.
Shareholders*
28.4%
Thai Trust fund*
6.0%
France Telecom
(Wirefree Services
Belgium)
0.8%
State Street Bank
And Trust
Company*
7.0%
Thai NVDR
Company Limited*
5.6% Kfw
6%
* True Move’s stake through % ownership in BITCO and True
CP granted True an option to buy back shares within six months following the rights
issue on a cost plus basis. At the end of first six months, True has an option to extend
for another 12 months, in such case, CP has a put option to sell share backs at the
end of extension period at the same exercise price. True announced plans to
repurchase CP group’s stake for THB 3.5 bn (six billion shares at THB 0.59) after True
extended the put option to June 2009. The repurchase would restore True’s stake in
True Move to 98.6%. The share repurchase price ensures CP group earns a return of
12% p.a. We view this transaction as a shareholders’ loan rather than an equity
injection.
True’s management indicated it is considering a bond issue of up to THB 20 bn (THB 4
bn for the share purchase and the remaining for refinancing), or a convertible
debenture issue of THB 4 bn, sales of BITCO shares, or a rights offerings as a last
resort. We believe CP Group’s capital injection indicated its willingness to support True
Move’s rising capex requirement.
Mr. Supachai Chearavanont is True Move’s President and CEO, and has served on
the Board since 2001. He has served on True’s Board since 1992 and became
TelecomAsia’s CEO in 2000 at the age of 32. He has a BBA in Financial Management
from Boston University, USA. Mr. Chearavanont is the youngest son of Dhanin
Chearavanont, CP Group’s and True Move’s Chairman.

8
True Move July 2008
Operations
True Move is Thailand’s third-largest mobile operator after AIS and DTAC.
Management expects to increase its subscriber base to 15 mn this year from 12.08 mn
at end-2007. The company increased its subscriber market share to 23.0% in March
from 7.7% in 2002 (Fig 7). The company’s population coverage in 2007 was 92%, the
same level as that of 2006.
Fig 7 True Move's Subscriber and Market Share Growth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2002 2003 2004 2005 2006 2007 1Q08
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Market Share (%) Subscribers (mn)
True Move’s operations comprise the following:
Voice services: Standard voice services offer access to local, domestic, and
international long distance calls and other related services such as call waiting, call
holding, conferencing, and caller identification.
Non-voice services: SMS, voice SMS, voice mail, MMS, GPRS, downloadable
content, ring-back tone, and Blackberry email services.
Mobile handset and accessories sales: Sale of handsets, PDA phones, Smart
phones, and accessories.
International roaming services: National roaming on True Move’s own network and
arrangements with international mobile operators on international roaming.
True Move offers a bundled service through its affiliation with True. Its subscribers
could earn free airtime during off-peak hours by paying for True’s products and
services. True Move’s postpaid subscribers could purchase bundled mobile and
internet packages. Its subscribers enjoy preferential rates on calls to True Corp[a]’s
fixed-line network. True Move’s subscribers could obtain free satellite TV with an
option to choose between prepaid monthly packages or pay-per-view channels at
special rates. True Move’s subscribers could obtain True Online’s faster internet
connection speed, not available to True Online’s other customers.
True Move focuses its strategy on maximizing cross-selling opportunities with other
products within True group. Management aims to increase a post-paid subscriber base
in order to cross-sell more bundled service and increase average revenue per user
(ARPU).

9
True Move July 2008
We estimate True Move had at least 28,000 points of sales in Thailand where
subscribers could purchase its services in 2007. Prepaid subscribers could purchase
and top-up SIM cards through ATMs, “over-the-air” top-up programs and True’s public
telephone kiosks in Bangkok. “Over-the-air” top-up services enable subscribers to top-
up their SIM cards in small denominations, increasing the popularity of True Move’s
prepaid SIM cards. We understand True Move used more than 100,000 authorized
airtime resellers.
True Money, a subsidiary of True Corp., provides a mobile payment service by
enabling subscribers to transfer funds between bank accounts and True Money
accounts to top up prepaid cards. True Move’s subscribers make a transfer through
their handset, making the process user friendly compared with other payment modes.
True Move operates under a concession owned by CAT Telecom PCL (CAT) (See
Industry Outlook section) which expires in 2013. Under the concession, the company
must make annual payments to CAT equal to the greater of:
1. Revenue-Sharing Percentage3
, calculated on a cash basis for prepaid
revenues and on billed amounts for postpaid revenue, net of access charges.
(Since November 2006, True Move has stopped paying an access charge); or
2. Specified minimum annual payments
CAT announced on June 6 that it would ask Thailand’s National Telecommunications
Commission (NTC) to allow both True Move and DTAC to launch a 3G service on an
850MHz frequency. We expect NTC to approve and see the progress as credit positive
for True Move (and DTAC) as we now expect True Move to be able to launch its 3G
service by 1Q09.
CAT granted True Move a 5-year 3G concession to True Move from 2013 to 2018
which would replace the expiring 2G concession. In our view, the concession
extension will provide comfort to future creditors and/or shareholders.
3
September 2000 to September 2006 – 20.0%
September 2006 to September 2011 – 25.0%
To be revised to 30.0% in September 2011
3G concession to
replace 2G concession
in 2013

10
True Move July 2008
Credit Profile
Credit Drivers
• 3G launch – dates depend on NTC’s approval
• 3G funding options
Strengths
• Strong brand name in Thailand
• Extensive mobile network and distribution centers
• Cross-selling opportunities within True’s group of companies
Weaknesses
• Low ARPU due to competition and True Move’s low-end market position
• Regulatory risk in Thailand’s telecom industry
• Political uncertainty in Thailand
• 102.5% total debt-to-total capital ratio, mitigated by total debt to EBITDA of
3.5x
Strategy
• Expand subscriber base and increase a postpaid proportion of total
subscribers to 10% from 6%
• Cross-sell mobile services to True’s customers and maximize synergies
between True Move and True
• Increase non-voice revenues (e.g. web access through mobile phones)
• Control costs, increase EBITDA and limit capex

11
True Move July 2008
Revenue and cost compositions
True Move’s voice revenues accounted for 76.2% of total revenues (excluding
interconnection (IC) revenues) in 2007 (Fig 9) versus AIS’s 73.7%4
and DTAC’s 79.8%
during the same period5
. Voice revenues dropped to 74.7% of total revenues,
excluding IC revenues, in 1Q08. We believe a 3G service will increase the non-voice
revenue proportion for all three operators.
Fig 8 True Move – FY07 Revenue Breakdown
Including IC Revenues
Fig 9 True Move – FY07 Revenue Breakdown
Excluding IC Revenue
Voice
Services
56.5%
Interconnectio
n revenues
25.9%
Non-Voice
Services
7.4%
International
Roaming
Services
7.4%
Mobile
Handset and
Accessories
Sales
2.8%
Voice
Services
76.2%
International
Roaming
Services
10.0%
Mobile
Handset and
Accessories
Sales
3.7%
Non-Voice
Services
10.0%
Source: Company data, ING estimates Source: Company data, ING estimates
True Move’s prepaid revenues accounted for 67.7% of total revenues (excluding IC) in
March (Fig 10) versus AIS’s 65.9% and DTAC’s 55.6%6
. Management plans to focus
on growing its postpaid subscriber base from 6% of total subscribers to 10% which, we
understand, is an industry average.
True Move’s regulatory charges, including concession fees and access charges,
accounted for 15.3% of 1Q08 operating cost (Fig 11) versus 27% for DTAC and 24.6%
for AIS7
. We note that True Move’s regulatory charges declined 4.4% YoY in absence
of access charges paid to TOT in 2008. Regulatory charges as % of total revenues
dropped to 15.3% in 1Q08 from 17.3% in 2007 and 32.1% in 2006.
The replacement of access charges by interconnection charges raised network
operating expenses to 47.3% of total revenue in 1Q08 from 43.5% in 2007 and 24.0%
in 2006. We expect IC regime to be the standard practice by year-end and that
network operating expenses will remain the major portion of total costs.
4
Estimate based on quarterly data
5
Excluding interconnect revenue
6
Voice pre-paid revenues only
7
The regulatory cost is calculated as a percentage of total cost of providing services, and excludes cost of goods
sold

12
True Move July 2008
Fig 10 Prepaid versus Postpaid Revenue
Breakdown
Fig 11 Cost Breakdown
0%
20%
40%
60%
80%
100%
2004 2005 2006 2007 1Q08
Prepaid Postpaid
30.4% 31.7% 31.5%
19.0% 16.7%
29.9% 27.4% 25.3%
16.2% 15.4%
18.0% 19.4% 23.6%
47.8% 51.7%
21.8% 21.5% 19.6% 17.0% 16.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 1Q08
Regulatory cost Total Depreciation & Amortization
Network operating expenses SG&A, excl. D & A
Source: Company data Source: Company data
Operating Performance
True Move’s 1Q08 revenues rose 17.6% YoY to THB 8.5 bn on IC revenue recognition
(26.7% of total revenues versus none last year). Service revenues, excluding IC
revenues, rose 2.9% as net additions offset declining blended ARPU (THB 145 versus
THB 227 in 1Q07). Prepaid ARPU dropped to THB 119 from THB 125 in 4Q07. Post-
paid ARPU declined to THB 540 from THB 618 in 4Q07.
Fig 12 Operating Highlights
Year to December (THB
mn)
2003 2004 2005 2006 2007 1Q08
Revenues 11,600.1 15,894.7 21,710.6 23,658.9 33,420.1 8,513.0
EBIT -4,588.6 -2,304.7 205.7 -994.9 2,305.5 683.3
EBITDA -536.9 2,415.4 5,592.1 5,090.7 7,230.5 1,883.3
We attribute the ARPU decline to competition in the postpaid segment and reduced
usage from rising tariffs. True Move’s average price points in 2Q07, 3Q07, 4Q07, and
1Q08 were 8%, 32%, 34%, and 31%, respectively, higher than that in 4Q06.
We expect the price war to shift to the postpaid market where AIS’s upcoming 3G
service would force DTAC and True Move to cut prices. We expect a price war in a
prepaid market to dissipate on the already-depressed call rates. We attribute a
continued drop in blended ARPU to an increasing number of prepaid customers with
multiple SIM cards, lower usage on higher tariffs for postpaid customers, and
intensified competition in the postpaid area.
Rate increase hurts
service revenues

13
True Move July 2008
Fig 13 Blended ARPUs
100
150
200
250
300
350
400
450
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
THBpermonth
True Move AIS DTAC
We expect True Move’s focus on postpaid expansion to sustain ARPU this year. We
expect True Move’s ARPU to remain below those of AIS and DTAC on True Move’s
low-end market position and AIS’s early entrance in the 3G arena.
Fig 14 Voice ARPU Trend
0
200
400
600
800
1,000
1,200
2003 2004 2005 2006 2007 1Q08
THBpermonth
Postpaid ARPU Prepaid ARPU Blended ARPU
1Q08 net additions dropped to 368K (the lowest since 4Q05) on the lagging effect of a
rate increase in 4Q07. Management expects True Move’s monopoly for vote casting in
a popular “Academy Fantasia Season 5” singing contest (a Thai version of “American
Idol”) to boost net additions in 2Q08. We believe True Move competes with AIS and
DTAC on prices and True Move’s higher average price point will continue to depress
net additions in the near term.

14
True Move July 2008
Fig 15 Net Additions
0
500
1,000
1,500
2,000
2,500
4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
'000subscribers
True Move AIS DTAC
_
1Q08 voice revenue growth was flat at 0.5% as rising net additions offset declining
ARPU. Non-voice revenues grew by 6.7% YoY on rising SMS usage. Postpaid
revenues dropped 1.1% YoY on a 4.3% decline in postpaid voice revenues, which we
believe, reflect lower usage. Prepaid revenues rose 1.9% YoY on net additions and flat
prepaid ARPU.
EBITDA margin dropped to 21.6% versus 27.0% last year due to the shift to
interconnection charges. Gross margin dropped to 23.3% from 24.9% on rising
network operating expenses. True Move has become a net IC payer of THB 210 mn
(versus a THB 45 mn gain in 1Q07). True Move replaces access charges paid to TOT
with IC fees paid to DTAC and AIS (See Industry Outlook). True Move has recognised
IC revenues or fees from February 2007 on an accrual basis. EBITDA dropped 3.6%
YoY to THB 1.8 bn.
We expect 2008 revenues to grow on rising net additions and non-voice revenues. We
believe AIS’s 3G progress could reduce True Move’s market share growth. We expect
EBITDA in 2008 to remain flat YoY, as rising network operating expenses offset limited
net additions.
Liquidity and Financial Leverage
True Move’s liquidity deteriorated in 1Q08. The cash to short-term debt ratio remained
unchanged at 1.9x in March versus December 2007. But the current ratio decreased to
0.6x in March from 0.7x in December 2007 on rising accrued regulatory cost.
Management indicated True Move has undrawn credit facilities of around THB 400 mn.
The EBITDA interest coverage remained stable at 2.4x (a B+ level) compared to the
FY07 level. 1Q08 EBITDA matched fixed charges (Fig 16). CP’s capital injection in
December 2007 fulfilled True Move’s 2008 capex requirement, in our view. Should
True Move elect to borrow to fund its 3G capex (See Capex Plan section below), we
expect financial leverage to rise in 2009.
EBITDA interest
coverage at B+ range

15
True Move July 2008
Fig 16 Key Liquidity and Debt Credit Ratios
Debt service ratio 2003 2004 2005 2006 2007 1Q08
EBITDA/interest
coverage (x)
-0.4 1.4 3.1 2.2 2.4 2.4
EBITDA/fixed charges +
capex (x)
NA 0.1 0.5 0.4 0.6 0.6
EBITDA/fixed charges (x) NA 0.1 1.4 0.7 0.9 1.0
Total debt/EBITDA (x) -62.3 13.0 5.8 6.1 4.0 3.5
Total debt to total capital
(%)
91.2% 88.6% 90.5% 94.2% 96.1% 102.5%
_
_
Fig 17 Total Debt versus EBTIDA Fig 18 EBITDA versus Fixed Charges* and
Capital Expenditures
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2003 2004 2005 2006 2007
THBmn
Total debt EBITDA
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2004 2005 2006 2007
THBmn
Capex and fixed charges EBITDA
Source: Company data, ING estimates Source: Company data, ING estimates
* includes principal and interest payments
_
Total debt to annualized EBITDA improved to 3.5x (a BB level) in March 2008 from
4.6x in March 2007 on debt reduction. Total debt dropped 8% on weakened US dollar
and debt repayment. True Move’s F/X losses offset declining debt. The company
recorded a negative net worth in March of THB 638 mn versus a positive THB 1.18 bn
in December 2007 on THB 1.7 bn of foreign exchange losses in 1Q08.
The total debt-to-total capital ratio deteriorated to 102.5% in March from 96.1% at end-
2007. We consider the 102.5% debt to capital ratio resembling a CCC+ credit profile.
The improving total debt to EBITDA multiple provides us with comfort on the
company’s debt service coverage. On the other hand, the CCC+ debt-to-capital ratio
indicates a depressed recovery value for the bonds in a default scenario.
Total debt to EBITDA at
BB range
Total debt to capital
ratio at CCC+ range

16
True Move July 2008
We believe the company will be able to pay its THB 1.58-bn principal repayment this
year (Fig 19). The THB 4.6 bn principal repayments from 2009-2011 and our
expectation of sustained EBITDA lead us to believe True Move will have to resort to
external funding for its 3G capex.
Fig 19 Debt maturity structure
1,584.7 1,855.7 1,558.8 1,150.4
456.0
16,707.3
7,627.5
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2008 2009 2010 2011 2012 2013 2014
THBmn
Capex plan
The company has increased its capex for network building over the years. Capex
peaked at THB 7.3 bn in 2005 before declining to 5.3 bn and 5.1 bn in 2006 and 2007,
respectively. We believe the major capex for True Move over the next three years will
be for a 3G license bid, a conversion from a 2G to 3G system, and related marketing
expenses.
The capex to sales ratio decreased to 17% in 1Q08 from 20% in 1Q07. Figure 20
indicates a declining capex/sales ratio since 2003. Free cash flow turned positive in
1Q08. We expect the 3G investment to worsen the capex to sales ratio and turn free
cashflow negative in 2009.
Fig 20 Capex versus Free Cash Flow
2003 2004 2005 2006 2007 1Q08
Capex/Sales 145% 26% 34% 22% 15% 17%
Free cashflow (19,431.1) (2,757.7) (2,498.4) (642.0) (860.0) 327.2
Management plans to initiate its 3G coverage of 60% to 70% of total population which
concentrated in the metropolitan areas. Management estimated, for the 70% coverage,
capex for 850 MHz and 2.1 GHz frequencies will be THB 5 bn and THB 7 bn,
respectively, over three years. Management could boost 2.1GHz capex up to THB 15
bn for the 100% coverage. Management expects a dual run of 850MHz and 2.1GHz
will reduce total capex to below THB 12 bn over the next three years.
Management plans to start investing in the 850MHz frequency next year and said it
could launch its 2.1GHz service a year after NTC grants a license (See Industry
Outlook section). From the date of an NTC public hearing in August, we estimate True
Move’s 2.1GHz capex program will start in 3Q09.

17
True Move July 2008
Management estimates capex without 3G investments of THB 5 bn and THB 2-3 bn for
2008 and 2009, respectively. We believe NTC’s delay in granting a 3G license will
delay True Move’s 3G spending to 1Q09. We estimate True Move’s 2009 capex,
including 3G spending, at THB 5.3 bn.
Against cash reserves of THB 2.5bn in March, our estimated EBITDA of THB 5.5 bn
for the next 3 quarters, our estimate of upcoming principal repayments and interest
expenses of THB 3.5 bn this year, and the undrawn credit facilities of THB 400 mn, we
believe True Move’s operating cashflow and cash reserves could fund the planned
2008 capex. With a debt repayment schedule of THB 1.9 bn and THB 5.3 bn capex
plan in 2009, we believe True Move will need about THB 2 bn in additional funding in
2009 (Fig 21).
Fig 21 EBITDA estimates vs. Principal Repayments, Interest Expenses, and
Capex
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
21,000
2007 2008 2009 2010 2011 2012 2013
THBmn
Principal repayments + Interest expenses + Capex EBITDA
Source: ING estimates
_
Management expects to fund its capex from operating cashflow and cash reserves
and, if necessary, could seek a strategic partner. We understand CAT has already
expressed interest to invest in True Move’s shares. Management does not rule out a
non-recourse project finance loan to fund its 3G capex plan. We believe CP Group
remains True Move’s last funding resort.
Rating expectations
Moody’s assigns a B1 rating with a negative outlook to True Move’s senior unsecured
debt. The negative outlook reflects True Move’s credit weakness in liquidity and
cashflow. Moody’s said it is unlikely it would upgrade the rating in the near term. The
agency could downgrade the rating if True Move or True sought waivers for their
financial covenants or the Moody’s-adjusted debt/EBITDA ratio exceeds 5.0x.
S&P rates TRUETB 13s and TRUETB 14s ‘B’, one notch below True Move’s B+ long-
term corporate credit rating. The one-notch differential reflects the expectation that the
ratio of priority debt (including non-cancellable operating leases) to total assets will be
sustained between 15% and 30%. The negative outlook reflects True’s and True
Move’s competitive and uncertain domestic regulatory environment, which could
hamper the group's deleveraging effort. S&P has not updated its credit report on True
Move since August 2007.
Funding risk next year

18
True Move July 2008
True Move’s credit profile resembles that of a B+ credit as debt service coverage,
improving total debt to EBITDA, and CP’s financial support offset the 102.5% total debt
to total capital ratio. We agree with S&P on its negative outlook in True Move’s rating.
Any additional borrowing to fund the 3G investments could put a downward pressure
on the rating, an event we would reconsider our recommendation.
Peer Comparison
True Move competes with AIS and DTAC on pricing, service quality, convenience of
use, and value-added services. AIS’s market share shrunk to 46.5% in December from
61.1% in 2002. True Move’s market share has gained ground on AIS, rising to 23.0%
in March from 7.7% in 2002. DTAC’s market share remains stable from 29.4% to
31.3% throughout the same period. We estimate Hutch-CAT’s and Thai Mobile’s total
market share of about 2%. AIS plans to increase its market share to 50% and DTAC
wants to maintain its current market share. Both AIS and DTAC estimate Thailand’s
mobile market could have 8 to 10 mn of net additions in 2008.
True Move targets a low end of the market where callers are sensitive to call tariffs and
incur fewer minutes of usage (MOU). True Move’s prepaid ARPU in 1Q08 was THB
119 versus THB 231 for AIS and THB 281 for DTAC.
Fig 22 Thailand’s Mobile Phone Market Share (Excluding Hutch-CAT and
Thai Mobile)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007
True Move AIS DTAC
True Move’s prepaid ARPU in 1Q08 was THB 119 versus THB 231 for AIS and THB
281 for DTAC. Postpaid ARPU in 1Q08 was THB 540 for True Move versus THB 756
for AIS and THB 815 for DTAC. We believe lower ARPU reflects True Move’s market
position at the low end of the market where callers spend less.
We believe a higher proportion of prepaid revenues versus peers has translated into a depressed ARPU (Fig 16) for True Move in exchange for a less severe price war and wider coverage which could lead to further cross-selling opportunities in the future. _
True Move’s credit fundamentals are the weakest among the Thai and Indonesian
network operators (Fig 23). We believe financial support from the CP Group enables
True Move to compete with AIS and DTAC. The upcoming 3G investments could
further weaken True Move’s credit metrics.
B+ with negative
outlook

19
True Move July 2008
Fig 23 Peer Comparison by Financial Statistics
2007 financials
USD mn (unless stated
otherwise)
True Move Advanced Info
Service
Excelcom Indosat TAC
Country Thailand Thailand Indonesia Indonesia Thailand
Ratings (Moody's/S&P) B1/B A-/NR Ba3/BB- Ba3/BB Ba1/BB+
Currency USD mn USD mn USD mn USD mn USD mn
FY ended Dec-07 Dec-07 Dec-07 Dec-07 Dec-07
Number of subscribers (mn) 12.1 24.1 15.5 24.5 15.8
- postpaid 0.7 2.3 0.5 1 2.1
- prepaid 11.4 21.8 15.0 24 13.7
ARPU (USD)
- postpaid 21 23 17 20 25
- prepaid 5 7 5 5 9
- blended 6 9 5 6 9
Cash 86 279 86 857 110
Current assets 487 691 179 1,149 456
Total Assets 1,846 4,327 2,003 4,823 3,385
S/T debt 46 181 392 251 240
Current Liabilities 737 945 785 1,241 835
L/T debt 914 849 636 1,526 800
Equity (excl. Minority interests) 39 2,513 475 1,761 1,740
Revenues 1,034 3,356 707 1,755 2,029
Gross Profit 252 1,166 340 630 646
Operating income 73 780 193 481 328
Interest expenses 92 53 76 152 72
EBIT (Operating income + other
recurring income)
(2) 9 - (24) 7
Net income 71 789 193 457 335
Depreciation (from cash flow
statements)
(49) 504 27 217 181
EBITDA 152 581 187 471 254
Capex 157 529 780 1,064 347
Key ratios
Current ratio (x) 0.7 0.7 0.2 0.9 0.5
Cash to S/T debt (x) 1.9 1.5 0.2 3.4 0.5
Total debt to total capital (%) 96.1% 29.1% 68.4% 50.2% 37.4%
Net debt to equity (%) 2213% 29.9% 198.4% 52.2% 53.5%
Gross margin (%) 24.4% 34.8% 48.0% 35.9% 31.8%
EBITDA margin (%) 21.6% 40.8% 53.6% 52.9% 29.0%
EBITDA/interest expenses (x) 2.4 25.7 5.0 6.1 8.2
EBITDA/interest expenses +
capex (x)
0.9 2.4 0.4 0.8 1.4
EBIT/Interest expenses (x) 0.8 14.8 2.5 3.0 4.7
ROA (%) -2.6% 11.6% 1.4% 4.5% 5.3%
ROE (%) -123.5% 20.1% 5.8% 12.3% 10.4%
Net debt/EBITDA (x) 3.6 0.5 2.5 1.0 1.6
Total debt/EBITDA (x) 4.0 0.8 2.7 1.9 1.8
_
_

20
True Move July 2008
Industry Outlook
Thailand’s dominant technology is a GSM standard which operates within 900MHz to
1,800 MHz frequencies (Fig 24).
Fig 24 Thailand’s Mobile Phone Operators/Frequencies
Company Technological standard Regulator
True Move GSM – 1800 CAT
AIS GSM – 900/GSM–1800 (for DPC) TOT/CAT
DTAC GSM – 1800 CAT
Hutch-CAT CDMA 800 CAT
Thai Mobile GSM – 1900 TOT
Rising geographical coverage, declining mobile handset prices, and declining call rates
have contributed to an increasing number of mobile subscribers (Fig 25). Prepaid
subscribers as a % of total subscribers in March were 90.8% for AIS, 87.5% for DTAC,
and 93.8% for True Move.
Thailand’s subscriber figures grew at a 24.4% CAGR to 53 mn from 2002 to 2007.
Total revenue growth for mobile operators grew at a slower pace at an 8.8% CAGR to
THB 150.8 bn between 2003 and 1H07. We believe slower revenues versus
subscriber growth highlights a declining ARPU due to price competition and split usage
(multiple SIM cards or handsets per person).
We estimate Thailand’s SIM penetration rate was at 82% at end-2007, up from 27.6%
in 2002. Both AIS and DTAC expect the SIM penetration rate to rise to approximately
95-96% by end-2008. We believe a 3G service is one of a few options that existing
mobile operators could offer to generate more revenues and profit margins, given a
near-saturated mobile market by year-end.
Fig 25 Penetration Rate and Subscriber Growth
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
2002 2003 2004 2005 2006 2007
20
30
40
50
60
70
80
90
Total Subscribers (mn) Penetration (%) - rhs
Source: Company data, AIS, DTAC
_

21
True Move July 2008
Thailand’s SIM penetration rate of 82% is high compared with countries with a similar
GDP per capita level (Fig 26).
Fig 26 Mobile Phone Penetration Rate versus GDP Per Capita
Country GDP per capita (USD) Penetration rate
Ecuador 3218 70%
Colombia 3611 75%
Thailand 3737 82%
Tunisia 3398 77%
Peru 3886 48%
Source: IMF World Economic Outlook Database, April 2008, DTAC, Telefonica, Orascom
_
Thailand’s mobile usage versus nominal GDP per capita compared to its regional
peers (Fig 27) leads us to believe the country’s mobile phone penetration rate has
reached a near-saturation point.
Fig 27 Mobile Usage in Select Asian Countries
0
200
400
600
800
1,000
1,200
1,400
1,600
IndiaPhilippines
Indonesia
C
hina
Thailand
M
alaysia
Taiw
an
KoreaH
ong
KongSingapore
Units/1,000population
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
NominalGDPperCapita(USD)
Units per 1000 population Nominal GDP per capita
Source: EIU
_
The price war in Thailand’s mobile phone industry has hurt the profit margins of mobile
operators. AIS and DTAC’s revenues per minute (RPM) dropped to THB 1 in mid 2007
from THB 2.75 in March 2005. We expect RPM to rise in the near term on the lack of
price competition this year. We believe 3G introduction by AIS and later by DTAC
could force True Move to cut prices this year.
We believe AIS’s early entry into the market and its favourable cost structure, due to
lower regulatory charges, has helped expand its network and boost profit margins. We
expect price competition to limit voice revenue growth from existing subscribers.
Increasing coverage area, as well as value-added services provided to its existing
subscribers, would drive near-term revenue.
We believe True Move’s bundled service with True’s cable TV and broadband internet
services have secured its market share (at the expense of AIS’s market share). True
Move’s strength in a prepaid segment through its extensive network should ensure its
prepaid market share. AIS’s early entry into the 3G arena will slow True Move’s
postpaid market share gain, in our opinion.

22
True Move July 2008
Telecom Regulations in Thailand
The Telephone Organization of Thailand (TOT) and Communications Authority of
Thailand (CAT) are the two main regulatory bodies of Thailand’s telecommunications
industry, both reorganized as TOT PCL and CAT Telecom PCL in July 2002 and
August 2003, respectively. The Information and Communications Technology (ICT)
Ministry administers both TOT and CAT on behalf of the Finance Ministry which owns
100% of TOT and CAT. TOT maintains a nationwide fixed-line network and offers
domestic telephone services. CAT provides international services such as international
calling, data services and internet services.
Thailand began a telecom regulation reform in 1997 as per the country’s commitment
to the World Trade Organization (WTO) to deregulate its telecom sector by 2006. The
1997 constitution provides a framework for establishing independent public agencies to
allocate radio frequencies and regulate radio, television and telecommunications
businesses. Thailand’s telecom regulatory framework reflects 2 Acts (the Frequency
Allocation Act in March 2000 and the Telecommunication Business Operation (TBO)
Act in November 2001), which the parliament passed according to the 1997
constitution. The laws and regulations imposed by the 1997 constitution have
remained in effect after the September 2006 military coup.
The private sector entered the industry through a Build-Transfer-Operate (BTO)
arrangement granted by TOT and CAT. The right to build infrastructure under
concessions requires a private operator to transfer network assets back to TOT (or
CAT) in exchange for an exclusive right to use assets during a concession period.
Thailand’s first mobile telecommunication service, launched in 1986, was on a Nordic
Mobile Telephone-470 (NMT-470) system. Advanced Info Service PCL (AIS) was the
first private company to set up operations (in 1990) under a TOT concession for an
initial 20-year period. AIS obtained a concession extension for 5 more years in 1996 to
extend the expiration date to 2015. CAT granted Total Access Communication PCL
(DTAC) a concession in 1991 for 15 years which, after two extensions, would expire in
2018. In 1996, CAT granted a concession to True Move for 17 years until 2013. In
1997, CAT granted a fourth and the most recent concession to Digital Phone Co. Ltd.
(DPC). AIS acquired DPC in 2001.
In 2003, CAT entered into a joint venture with Hutchinson Wireless Multimedia
Holdings Ltd to provide mobile telecommunications services in Bangkok in the central
provinces of Thailand under Hutch-CAT. CAT and TOT also provide mobile
telecommunications services under a joint venture named “Thai Mobile”.
Thailand’s telecom regulation is evolving. Previous TOT and CAT policies, including
telecom concessions, have come under intense public scrutiny over allegations of
corruption following the September 2006 military coup. AIS’s previous involvement
former Prime Minister Thaksin Shinawatra resulted in the company being placed on a
corruption watch.

23
True Move July 2008
The National Telecommunication Commission (NTC8
), set up in October 2004, serves
as Thailand’s independent regulator of the telecommunications industry. We
understand NTC plans to conduct a public hearing on a 3G license by August in order
to issue the long-awaited 3G license (with WiMax9
) grants in September. We expect
NTC to announce its regulation on mobile number portability, which we believe, could
start in 2009 due to the need for database set-up. NTC is drafting its guideline for the
new 2.1 GHz frequency. We believe NTC will not be able to launch the 2.1 GHz until at
least until 1Q09. We expect new operators to enter the new 3G system in 2009 and
cost the incumbents their market shares.
AIS launched its 3G high-speed packet access (HSPA) on the 900 MHz spectrum in
Chiangmai on May 6 under TOT concession and NTC authorization. DTAC and True
Move are awaiting CAT’s permission to launch a 3G service on an 850MHz spectrum.
Both AIS and DTAC have already conducted a 3G service test this year. AIS had to
delay a 3G expansion plan into Bangkok due to NTC’s delays in the approval of 3G
equipment imports. CAT would ask NTC to allow both True and DTAC to launch a 3G
service on an 850MHz frequency. We expect NTC to approve and expect True Move
to launch its 3G service by 1Q09.
We see a trade-off between reduced regulatory charges for the new 3G system and
enlarged capex for 3G network migration and marketing expenses. We believe a
conversion to 3G would increase cross-selling opportunities within True’s group of
companies.
CAT plans to adopt a mobile virtual network operator (MVNO) regulation after its
concessions with DTAC and True Move expire in 2013. Under MVNO, a mobile
operator rents a radio frequency from CAT. We have not included the MVNO issue in
our consideration, pending on-going developments.
Regulatory Charges
The BTO agreement is subject to a private operator’s payment of a concession fee to
either TOT or CAT. In January 2003, the Thai government imposed a 10% excise tax
to network operators which could use excise tax payments to offset concession fees
paid to TOT or CAT. The government cancelled a 10% excise tax in February 2007.
Network operators under a CAT concession have to pay an access charge as a
percentage of revenues to TOT. AIS does not have to pay the access charge since it
received a concession from TOT. We believe this uneven treatment among network
operators has created a competitive advantage for AIS.
8
The Frequency Allocation Act vests NTC with the following roles:
• Set telecommunications policies and allocate radio frequencies.
• Set a fee and tariff structure for subscribers and interconnect charges.
• Grant radio spectrum usage licences.
• Prescribe technical standards for telecommunications businesses and criteria and procedures for network
interconnection and access.
• Allocate phone numbers to service providers.
• Promote fair competition.
9
A high-speed wireless technology which enables faster internet browsing and downloads.
3G on 2.1GHz in 2009
3G on 900MHz by AIS
this year

24
True Move July 2008
NTC issued interconnection10
and access regulations in May 2006 that require
interconnection fee calculation based on a long-term incremental cost method. Mobile
operators have the right to negotiate their interconnection agreements with other
operators on off-net calls. True Move entered into interconnection agreements with
DTAC on November 17, 2006 and with AIS on January 16, 2007.
The interconnection fee regime, together with DTAC and True Move’s charges of
unfair treatment by TOT, has led both companies to cease paying access charges to
TOT since November 2006. DTAC used to pay 18% of prepaid revenues and THB 200
per postpaid number per month to TOT as an access charge, and an additional 25% of
revenues to CAT as a concession fee. AIS pays 20% and 30% of its revenues for the
prepaid and postpaid segments, respectively.
TOT retaliated against True Move and DTAC by refusing to grant interconnection for
additional numbers assigned by NTC. DTAC and True Move later filed a lawsuit in
January 2007, which has produced an injunction requiring TOT to reinstate
connections. TOT filed a lawsuit against True Move in November 2007, claiming an
access charge contract violation which, according to True’s management, incurred
access charges of THB 4 bn, and associated interest expenses. True Move’s
management estimated the expense net of revenue sharing to CAT, would be THB 4.4
bn. The court ruling is pending.
The Central Administrative Court (CAC) ordered TOT to negotiate an interconnection
agreement with DTAC in May 2008. The CAC ruling is final and TOT will not be able to
appeal. True Move’s management indicated it would wait until DTAC and TOT to reach
an interconnection agreement before proposing an interconnection negotiation with
TOT. We understand that AIS will not start collecting interconnection fees from DTAC
and True Move without TOT’s approval. In our view, AIS’s approval of interconnection
fees and the court order on TOT to negotiate with DTAC on interconnections
demonstrate the Thai government’s support of NTC’s interconnection regulation. We
expect interconnection arrangements to be a standard practice by year-end.
We expect evolving regulation to level the playing field and reduce regulatory charges
at DTAC and True Move. We believe Thailand’s WTO membership should encourage
Thailand’s mobile phone industry to adopt the interconnection fee arrangement.
Interconnection fees would benefit operators with large networks, and we see AIS as a
net recipient of traffic flows in a regular pricing scheme. AIS could also charge a higher
interconnection fee to DTAC and True Move.
Call promotions by DTAC or AIS could boost off-net call volume and make True Move
a net recipient. We believe interconnection fees will depress DTAC’s and True Move’s
profit margins due to competition from AIS in the postpaid market. We believe call
rates for the prepaid market are already at the bottom and price competition will be
less intense. True Move’s focus on prepaid calls could lessen the impact of a price war
on the company’s earnings. We expect operators to promote on-net calls as well as
other non-voice services to minimise interconnection fees on off-net calls.
10
Interconnection refers to a connection from one user of a telecommunications network of one service provider with
other users of another network.
AIS’s advantage
reduced

25
True Move July 2008
Fig 28 Financial Summary (Income Statement and Cash Flow Data)
Income statement/cashflow details
(THB mn)
2003 2004 2005 2006 2007 1Q08
Total revenues 11,600.1 15,894.7 21,710.6 23,658.9 33,420.1 8,513.0
Revenues from mobile phone
(Service revenues)
10,165.7 13,071.4 19,529.8 22,308.7 32,492.1 8,325.0
Voice Revenues 9,187.1 11,576.5 16,785.6 18,077.0 18,878.2 4,657.0
Postpaid 4,155.9 3,734.5 4,978.6 3,929.2 4,338.2 1,046.3
Prepard 5,031.2 7,842.0 11,807.0 14,147.8 14,540.0 3,610.7
Non-voice Revenues 372.1 554.6 1,477.3 2,130.8 2,479.0 641.1
Postpaid 123.1 132.2 387.1 463.2 524.4 157.2
Prepaid 249.0 422.4 1,090.2 1,667.6 1,954.6 483.8
International roaming and other
service revenues
606.5 940.3 1,266.9 2,100.9 2,479.0 750.0
Interconnect revenue 8,656.0 2,277.0
Revenues from product sales 1,434.4 2,823.3 2,180.8 1,350.2 928.0 188.0
Cost of sales 10,806.6 13,373.0 15,923.5 18,884.7 25,272.7 6,525.8
Cost of providing services 9456.2 10904.3 13968.9 17919.6 24,468.0 6,339.0
- Regulatory cost 3,691.2 4,801.8 6,246.8 7,584.1 5,792.0 1,299.0
- Depreciation & Amortization 2,919.2 3,267.7 3,910.9 4,660.4 4,147.0 1,015.0
- Network operating expenses 2,845.8 2,834.8 3,811.2 5,675.1 14,529.0 4,025.0
Cost of sales 1,350.4 2,468.7 1,954.6 965.1 717.0 166.0
Gross profit 793.5 2,521.7 5,787.1 4,774.2 8,147.4 1,987.2
Selling, General, and Administrative
expenses
5,434.8 4,888.3 5,717.9 6,131.4 5,779.1 1,406.7
- Depreciation & Amortization 1,132.5 1,452.4 1,475.5 1,425.2 779.0 185.0
- Others 4,302.3 3,435.9 4,242.4 4,706.2 5,165.0 1,263.0
Operating profit (4,641.3) (2,366.6) 69.2 (1,357.2) 2,368.3 580.5
Interest expenses 1,465.6 1,690.5 1,785.9 2,321.7 2,982.3 787.0
Other recurring income 52.7 61.9 136.5 362.3 (62.8) 102.8
EBIT (4,588.6) (2,304.7) 205.7 (994.9) 2,305.5 683.3
EBITDA (536.9) 2,415.4 5,592.1 5,090.7 7,231.5 1,883.3
Non-recurring items (441.2) (192.8) (60.5) (684.5) (898.5) (1,710.2)
Profit before taxes (6,495.4) (4,188.0) (1,640.7) (4,001.1) (1,575.3) (1,813.9)
Tax expenses/(refund) 0.0 0.0 0.0 0.0 0.0 0.0
Net income (6,495.4) (4,188.0) (1,640.7) (4,001.1) (1,575.3) (1,813.9)
Depreciation 4,051.7 4,720.1 5,386.4 6,085.6 4,926.0 1,200.0
Capital expenditures 16,767.6 4,202.1 7,279.4 5,202.5 5,069.8 1,466.9
Operating lease payment 1,529.9 1,920.0 2,104.5 2,891.2 3,127.5 781.9
Fixed charges NA 35,576.3 3,922.6 6,955.4 7,892.1 1,908.8
Cash from operating activities (2,663.5) 1,444.4 4,781.0 4,560.5 4,209.8 1,794.1
Cash from financing activities 16,676.9 2,807.1 1,372.0 1,113.7 1,779.6 (350.1)
Cash used for investing activities (16,432.3) (4,386.4) (7,265.1) (5,124.4) (5,004.6) (1,466.4)
Net cash used (2,418.9) (134.9) (1,112.1) 549.8 984.8 (22.4)
Free cashflow (19,431.1) (2,757.7) (2,498.4) (642.0) (860.0) 327.2
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True Move July 2008
Fig 29 Financial Summary (Balance Sheet Details and Key Ratios)
Balance sheet details (THB mn) 2003 2004 2005 2006 2007 1Q08
Cash 2,285.4 2,148.3 1,036.5 1,585.8 2,572.2 2,549.8
Receivables 805.4 1,617.5 2,822.3 4,035.4 9,119.4 5,336.6
Inventory 306.4 392.3 494.2 1,304.4 1,608.8 996.5
Total current assets 6,429.4 7,861.2 6,219.7 8,109.8 14,513.5 9,930.4
Fixed assets 35,008.2 32,373.7 35,921.1 41,465.7 38,691.7 37,648.0
Intangible assets, net 245.6 2,489.4 1,688.1 1,097.9 1,519.0 1,583.0
Total assets 41,912.1 42,983.0 44,007.0 50,893.1 55,510.0 49,774.6
Payables 1,914.8 2,905.6 4,346.2 13,260.3 15,362.7 9,151.1
Bank short-term debt 1,448.7 0.0 480.0 0.0 0.0 0.0
Current portion of long-term debt 31,965.8 32.2 1,742.5 1,782.3 1,359.5 1,373.5
Total current liabilities 38,177.2 7,546.3 10,391.6 19,439.9 22,041.7 17,783.6
Loans from shareholders
Long-term debt 26.2 31,382.3 30,201.6 29,237.9 27,236.7 25,040.4
Pension liabilities
Environmental liabilities
Total liabilities 38,669.7 38,928.6 40,593.2 48,980.4 54,333.9 50,412.9
Shareholders' equity 3,242.3 4,054.5 3,413.8 1,912.7 1,176.0 (638.3)
Financial ratios
Profitability
Gross margin (%) 6.8% 15.9% 26.7% 20.2% 24.4% 23.3%
EBIT margin (%) (39.6%) (14.5%) 0.9% (4.2%) 6.9% 8.0%
EBITDA margin (%) (4.6%) 15.2% 25.8% 21.5% 21.6% 22.1%
Return on average assets (%) NA (9.9%) (3.8%) (8.4%) (3.0%) (14.6%)*
Liquidity
Current ratio (x) 0.2 1.0 0.6 0.4 0.7 0.6
Receivable turnover (days) 25.3 37.1 47.4 62.3 99.6 57.0
Cash to short-term debt (x) 0.1 66.7 0.5 0.9 1.9 1.9
Financial Leverage
Total debt to total capital (%) 91.2% 88.6% 90.5% 94.2% 96.1% 102.5%
Total debt to total tangible capital (total
capital minus intangible assets) (%)
91.8% 95.3% 94.9% 97.4% 101.2% 109.2%
Debt service ratio
EBITDA/interest coverage (x) (0.4) 1.4 3.1 2.2 2.4 2.4
EBITDA/fixed charges + capex (x) NA 0.1 0.5 0.4 0.6 0.6**
EBITDA/fixed charges (x) NA 0.1 1.4 0.7 0.9 1.0**
Total debt/EBITDA (x) (62.3) 13.0 5.8 6.1 4.0 3.5*
Net debt/EBITDA (x) (58.0) 12.1 5.6 5.8 3.6 3.2*
Cash from operating activities/Total
debt (%)
(8.0%) 4.6% 14.7% 14.7% 14.7% NA
* Annualized ** Adjusted for a quarterly portion
_
We acknowledge the contribution of Shamalee Van Der Poorten, an analyst with
AMBA Research, to this report.
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27
True Move July 2008
Disclosures Appendix
ANALYST CERTIFICATION
The analyst(s) who prepared this report hereby certifies that the views expressed in this report accurately reflect
his/her personal views about the subject securities or issuers and no part of his/her compensation was, is, or will be
directly or indirectly related to the inclusion of specific recommendations or views in this report.
IMPORTANT DISCLOSURES
The following designations [a-g] next to a subject company in this publication highlights that:
[a] One or more members of ING Group holds 1% or more of the equity shares (as at the end of the month
preceding this publication) in the company.
[b] The company holds 5% or more of the issued share capital of ING Groep N.V. (as at the end of the month
preceding this publication).
[c] One or more members of ING Group holds a significant holding in the bonds of the company.
[d] One or more members of ING Group has lead managed or co-lead managed a public offering of the securities of
the company in the last 12 months.
[e] The company is or has been party to an investment banking agreement with one or more members of ING
Group over the last 12 months.
[f] One or more members of ING Group is a liquidity provider, or acts as designated sponsor or market maker for
the company.
[g] One or more members of ING Group has a member of its board of directors or supervisory board or senior
officer on the board of directors or supervisory board of the company.
For disclosures on companies other than the subject companies of this report visit our disclosures page at http://research.ing.com
The remuneration of research analysts is not tied to specific investment banking transactions performed by ING
Group although it is based in part on overall revenues, to which investment banking contribute.
Financial interests: One of more members of ING Group may hold financial interests in the companies covered in this
report other than those disclosed above.
Securities prices: Prices are taken as of the previous day’s close on the home market unless otherwise stated.
Market making. In addition to the market making disclosed on companies, one or more members of ING Group may
be a liquidity provider in sovereign securities.
Conflicts of interest policy. ING manages conflicts of interest arising as a result of the preparation and publication of
research through its use of internal databases, notifications by the relevant employees and Chinese walls as
monitored by ING Compliance. For further details see our research policies page at http://research.ing.com.
FOREIGN AFFILIATES DISCLOSURES
Each ING legal entity which produces research is a subsidiary, branch or affiliate of ING Bank N.V. See back page
for the addresses and primary securities regulator for Asian research offices.
RECOMMENDATIONS
Overweight: Greater than the weight in the benchmark index
Neutral: Equal to the weight in the benchmark index
Underweight: Less than the weight in the benchmark index
Benchmark index: market-cap-weighted portfolio of Asian bonds in which ING trading desks make two-way quotes in reasonable size -
generally taken to mean US$5m by US$5m.
RECOMMENDATION DISTRIBUTION
Overweight: 46% (of which 3% are investment banking clients)
Neutral: 13% (of which 10% are investment banking clients)
Underweight: 41% (of which 0% are investment banking clients)
The distribution breakdown is based on our Asian universe as of end 1Q08.

28
True Move July 2008
AMSTERDAM BRUSSELS LONDON NEW YORK SINGAPORE
Tel: 31 20 563 91 11 Tel: 32 2 557 16 30 Tel: 44 20 7767 1000 Tel: 1 646 424 6000 Tel: 65 6535 3688
Bratislava
Tel: 421 2 5934 61 11
Bucharest
Tel: 40 21 222 1600
Budapest
Tel: 36 1 268 0140
Buenos Aires
Tel: 54 11 4310 4700
Dublin
Tel: 353 1 638 4000
Edinburgh
Tel: 44 131 527 3000
Geneva
Tel: 41 22 593 8050
Hong Kong
Tel: 852 2848 8488
Istanbul
Tel: 90 212 258 8770
Kiev
Tel: 380 44 230 3030
Madrid
Tel: 34 91 789 8880
Manila
Tel: 632 479 8888
Mexico City
Tel: 52 55 5258 2000
Milan
Tel: 39 02 89629 3610
Moscow
Tel: 7495 755 5400
Paris
Tel: 33 1 55 68 46 50
Prague
Tel: 420 2 5747 1111
Santiago
Tel: 562 452 2700
Sao Paulo
Tel: 55 11 4504 6000
Seoul
Tel: 822 317 1800
Shanghai
Tel: 86 21 6841 3355
Sofia
Tel: 359 2 917 6400
Taipei
Tel: 886 2 2734 7600
Tokyo
Tel: 813 5210 0100
Warsaw
Tel: 48 22 820 5018
Asian research offices: legal entity/address/primary securities regulator
Hong Kong ING Bank N.V. Hong Kong Branch, 39/F, One International Finance Centre Central Hong Kong. Hong Kong Monetary Authority
Manila ING Bank N.V. Manila Branch, 21/F Tower I, Ayala Avenue, 1226 Makati City, Philippines.
Philippine Securities & Exchange Commission
Singapore ING Bank N.V. Singapore Branch, 19/F Republic Plaza, 9 Raffles Place, #19-02, Singapore, 048619. Monetary Authority of Singapore
ASIAN BOND CONTACTS LIST
RESEARCH
Tim Condon Head of Research /Chief Economist, Asia Singapore (65) 6232 6020
Joey Cuyegkeng Economist Manila (632) 479 8855
Prakash Sakpal Economist, Asia Singapore (65) 6232 6181
Steve Chow Credit Analyst, Corporate Hong Kong (852) 2913 8162
Warut Promboon Credit Analyst, Industrials Singapore (65) 6232 6031
SALES
Stephanie Wang Hong Kong (852) 2913 8187 Jane Liew Singapore (65) 6232 6173
Bik Chang Hong Kong (852) 2913 8185 Demina Tarigan Jakarta (6221) 515 7580
Russell Bennett Hong Kong (852) 2913 8184 Verlyn Siauw Jakarta (6221) 515 7581
Lisha Felipe Manila (632) 479 8848 Chiu Lin Fee Singapore (65) 6232 6172
Jamie Fernando Manila (632) 479 8848 Imogine Baker Singapore (65) 6232 6171
Paolo Sisti Milan (39) 2 89629 3610 Doreen Ng Singapore (65) 6232 6165
Silvia Cattania Milan (39) 2 89629 2636 Jose Cerrilla New York (1) 646 424 6105
Renato Manuelli Milan (39) 2 89629 2631 Gerard Goger New York (1) 646 424 6600
Juan Zarazaga Madrid (34) 91789 8996 Ed Melton New York (1) 646 424 6600
Camila Penteado San Paulo (55) 11 4504 6485 James Luse New York (1) 646 424 6600
Joy Giorgi London (44) 20 7767 8760 Carlos Olivares New York (1) 646 424 6600
Zeynep Topel London (44) 20 7767 8709 Seonchang Kim Seoul 822 317 1826
Angela Deviatova (44) 20 7767 6118 Tony Jung Seoul 822 317 1838
Greta Coenen London (44) 20 7767 8676 Jerry Li Taipei (8862) 2734 7657
Assunta Covino-Bali London (44) 20 7767 8762 Eileen Wu Taipei (8862) 2734 7650
Dean Tyler London (44) 20 7767 8527 KC Cheng Taipei (8862) 2734 7620
Disclaimer
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companies) solely for the information of its clients. ING forms part of ING Group (being for this purpose ING Groep NV and its subsidiary and affiliated companies). It
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