Financial Report
Board Of Directors’ Responsibility for Financial Reporting The Board of Directors is responsible for Advanced Info Service Public Company Limited’s financial statements and Advanced Info Service Public Company Limited and its subsidiaries’ consolidated financial statements, including the financial information presented in this annual report. The aforementioned financial statements are prepared in accordance with generally accepted accounting principles, using careful judgment and the best estimation. Important information is adequately and transparency disclosed in the notes to financial statements for the Company shareholders and investors. The Board of Directors provides and maintains risk management system and appropriate and efficient internal controls to ensure that accounting records are accurate, reliable and adequate to retain its assets as well as to prevent fraud or materially irregular operations.
FINANCAIL REPORT
In this regard, the Board of Directors has appointed an Audit Committee comprising independent directors to be responsible for reviewing quality of the financial reports, internal controls, internal audit and risk management system. The Audit Committee also reviews a disclosure of related party transactions. All their comments on these issues are presented in the Audit Committee Report included in this annual report. The separate financial statements and the consolidated financial statements of the Company have been examined by an external auditor, Deloitte Touche Tohmatsu Jaiyos Audit Company Limited. To conduct the audits and express an opinion in accordance with generally accepted auditing standards, all records and related data, as requested, are provided to the auditor. The auditor’s opinion is presented in the auditor’s report as a part of this annual report. The Board of Directors considers the Company’s overall internal control system satisfactory and provides credibility and reliability to Advanced Info Service Public Company Limited’s financial statements and Advanced Info Service Public Company Limited and its subsidiaries’ consolidated financial statements for the year ended 31 December 2016. The Board of Directors also believes that all these financial statements have been prepared in accordance with generally accepted accounting principles and related regulations.
Mr. Kan Trakulhoon Chairman of the Board of Directors
105
Advanced Info Service Public Company Limited
Mr. Allen Lew Yoong Keong Chairman of the Executive Committee
Report of The Independent Certified Public Accountants TO THE SHAREHOLDERS AND BOARD OF DIRECTORS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED Opinion
We have audited the consolidated financial statements of Advanced Info Service Public Company Limited and its subsidiaries (the “Group”) and the separate financial statements of Advanced Info Service Public Company Limited (the “Company”) which comprise the consolidated and separate statements of financial position as at December 31, 2016, and the related consolidated and separate statements of profit or loss, profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated and separate financial statements present fairly, in all material respects, the financial position of Advanced Info Service Public Company Limited and its subsidiaries and of Advanced Info Service Public Company Limited as at December 31, 2016, and financial performance and cash flows for the year then ended in accordance with Thai Financial Reporting Standards (“TFRSs”). We conducted our audit in accordance with Thai Standards on Auditing (“TSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group in accordance with the Federation of Accounting Professions under the Royal Patronage of his Majesty the King’s Code of Ethics for Professional Accountants together with the ethical requirements that are relevant to the audit of the consolidated and separate financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Annual Report 2016
106
FINANCIAL REPORT
Basis for Opinion
Key Audit Matters Revenue recognition There is a risk around the accuracy of the Group’s revenue recorded given the complexity of systems and the impact of changing pricing models to revenue recognition. Furthermore the application of revenue recognition accounting standards is complex. In addition, we have also identified critical areas in relation to revenue recognition set out below that we considered significant. • accounting for new products and tariffs introduced in the year; • accounting for long-term contracts; and • the timing of revenue recognition. Accounting policies for revenue recognition was disclosed in Note 3.17 to the financial statements.
Audit Responses Key audit procedures included: • Evaluated the relevant IT systems and the design and implementation and operating effectiveness of controls over the capture and recording of revenue transactions. In doing so, we involved our IT specialists to assist in the audit of automated controls, including interface controls between different IT applications. • Evaluated the business process controls in place over the authorization of rate changes, the introduction of new plans and the input of this information to billing systems. We audited the access controls and change management controls for such systems. • Performed audit on the accuracy of customer bill generation on a sample basis and testing of a sample of the credits and discounts applied to customer bills; and testing cash receipts for a sample of customers back to the customer invoice. • Audited key reconciliations used by management from business support systems to billing systems to the general ledger to assess the completeness and accuracy of revenue. • Audited supporting evidence for manual journal entries posted to revenue accounts to identify any unusual items.
FINANCAIL REPORT
In addition, our audit procedures related to critical areas are as below; • Audited samples of customer bills for accuracy for new products and tariffs introduced in the year. • Performed procedures to long-term contracts which may exhibit areas of audit interest such as significant change in margins and accounts with high accrued revenue amongst others. We challenged the assumptions and judgements underpinning forecast. • Validated with the assumptions and key management estimates adopted where revenue is recognized but they have not issued invoice yet. Capitalization of assets and asset lives There are a number of areas which impact the carrying value of property, plant and equipment and intangible assets. We have identified critical areas set out below that we considered significant. • the decision to capitalize or expense costs; • the timeliness of transfer from the course of construction to plant and equipment; and • management judgement used in the annual asset life review. Accounting policies for recognition and measurement of property, plant and equipment and intangible assets and details were disclosed in Notes 3.8, 3.10, 3.23 and Notes 11, 15 to the financial statements, respectively.
107
Advanced Info Service Public Company Limited
Key audit procedures included: • Tested controls in place over the property, plant and equipment cycle and evaluated the appropriateness of capitalization policies. • Performed audit of details on costs capitalized and assessed the timeliness of transfer from the course of construction to plant and equipment. • Challenged the judgements made by management on the appropriateness of asset lives applied in the calculation of depreciation and amortization.
Key Audit Matters Significant commercial disputes and litigations The Group has a number of legal, regulatory and tax cases. There is a high level of judgement required in estimating the level of provisioning required. The Group operates under the supervision of The National Broadcasting and Telecommunications Commission (NBTC). If the NBTC has acted lawfully upon any interpretation amendments and/or enactment of new rules and regulations, the Group may not lawfully file a lawsuit and/or make any claim for any indemnification. In addition, the Group cooperates with TOT Public Company Limited and CAT Telecom Public Company Limited. There is a risk of conflict of interests between the entities. Significant events, commercial disputes and litigations were disclosed in Note 38 to the financial statements.
Audit Responses
Other Matter
The consolidated financial statements of Advanced Info Service Public Company Limited and its subsidiaries and the separate financial statements of Advanced Info Service Public Company Limited for the year ended December 31, 2015, presented herein as comparative information, were audited by another auditor, whose report thereon dated February 4, 2016 expressed an unmodified opinion on those statements.
Other Information
Management is responsible for the other information. The other information comprises information in the annual report, which is expected to be made available to us after the date of this auditor’s report. Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and the management of the Group.
Annual Report 2016
108
FINANCIAL REPORT
Key audit procedures included: • Designed and performed audit procedures in order to identify litigations and claims involving the Group which may give rise to a risk of material misstatement, including: - Inquired of management and in-house legal counsel about significant events, commercial disputes and litigation. - Reviewed minutes of meetings of those charged with governance and correspondence between the Group and its external legal counsel. - Reviewed legal expense accounts. • Considered compliance with laws and regulations of the Group including: - As part of obtaining an understanding of the Group and its environment, we obtained a general understanding of: - The legal and regulatory framework applicable to the Group and the industry or sector in which the Group operates; and - How the Group is complying with that framework. - Inquired of management and those charged with governance, as to whether the Group is in compliance with such laws and regulations and inspecting correspondence, if any, with the relevant regulatory authorities such as NBTC. • Requested management to provide written representations that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to us and accounted for and disclosed in accordance with Thai financial reporting standards.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements Management is responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with TFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process.
FINANCAIL REPORT
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with TSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements. As part of an audit in accordance with TSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • • • • •
109
Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Advanced Info Service Public Company Limited
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. FINANCIAL REPORT
Dr. Suphamit Techamontrikul Certified Public Accountant (Thailand) Registration No. 3356 DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD. February 3, 2017
Annual Report 2016
110
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Statements of Financial Position
STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER
31, 2016
Advanced Info Service Public Company Limited and Its Subsidiaries
UNIT : BAHT
CONSOLIDATED
NOTES
SEPARATE
CONSOLIDATED As at As at FINANCIAL STATEMENTS FINANCIAL STATEMENTS
ASSETS ASSETS
Current assets
Cash and cash equivalents
Specifically-designated bank deposits
Current investments
Trade and other receivables Dividend receivables
Short-term loans to related parties Inventories
Other current assets
Total current assets
Non-current assets
Investments in an associate
4
5
6
7, 34 34
34 8
35
10
Other long-term investments
6
Property, plant and equipment
Other non-current assets
Total non-current assets
-
-
16,388,529,471 -
-
3,085,251,635
5,059,252,355
31,899,338,792
38,006,869,405
508,453,933
24,234,502 -
14,662,013
59,399,310
1,942,220,774
-
-
58,399,310
34,930,692
34,930,692
15
35
16
34
-
115,378,417,908
4,099,208,006
577,660,237
Notes to the financial statements form an integral part of these statements
-
51,790,573,854
3,192,332,249
409,710,983 -
1,868,662,606
12,093,267,807 39,243,900,000 67,871
248,207,349
53,863,816,616
-
December As at 31, December 2015 31, 2015 1,153,323,176 -
5,482,137,002
19,944,391,312 44,243,900,000 38,632,788
1,329,506,403
72,191,890,681
-
7,720,665,448
7,660,665,448
47,999,310
46,999,310
-
-
336,867,143
499,589,004
-
-
-
-
46,745,757
-
-
72,491,069
795,449,411
2,340,027,690
1,494,358,084
1,001,345,194
243,771,011,770
143,754,403,767
275,670,350,562
December As at 31, December 2016 31, 2016
517,060,528
1,251,587,959
2,693,223,583
SEPARATE FINANCIAL STATEMENTS As at As at
795,449,411
2,617,832,320
Notes to the financial statements form an integral part of these statements
Advanced Info Service Public Company Limited
304,674,040
13
Total assets
111
4,447,280,062
84,291,102,602
14
Swap and forward contracts receivable
14,116,309,540
9,864,912,703
118,271,443,199
Spectrum licenses
Deferred tax assets
-
December As at 31, December 2015 31, 2015
11
12
Other intangible assets
2,963,182,980
9
Assets under the Agreements for operations
Goodwill
11,226,140,704
9
Investments in subsidiaries
Investments in a joint venture
FINANCAIL REPORT
NOTES
December As at 31, December 2016 31, 2016
UNIT : BAHT
FINANCIAL STATEMENTS
181,761,273,172
868,037,276
11,031,733,546
64,895,550,162
64,889,855
10,141,429,291
82,333,319,972
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Statements of Financial Position (Continued) STATEMENTS OF FINANCIAL POSITION (CONTINUED) AS AT DECEMBER
31, 2016
Advanced Info Service Public Company Limited and Its Subsidiaries
CONSOLIDATED
NOTES
FINANCIAL STATEMENTS
CONSOLIDATED As at As at FINANCIAL STATEMENTS
LIABILITIES AND EQUITY LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings from financial institutions Trade and other payables
Current portion of long-term liabilities
Current portion of spectrum licenses payable Short-term borrowings from related parties Accrued revenue sharing expenses
Unearned income - mobile phone service Advanced received from customers
Income tax payable
NOTES 17
9,200,000,000
18, 34
34,292,055,244
19
10,017,157,156
17
17, 34
5
Other current liabilities
2,484,704,493 -
December As at 31, December 2015 31, 2015 8,500,000,000
27,750,537,994
4,355,626,863 -
-
SEPARATE UNIT : BAHT SEPARATE FINANCIAL STATEMENTS As at As at FINANCIAL STATEMENTS
December As at 31, December 2016 31, 2016
5,700,000,000
3,086,074,755
2,052,743,555 -
6,440,000,000
2,963,182,980
4,447,280,062
-
-
1,756,300,784
4,761,207,636 22,791,839
-
1,101,566
27,263,213,971
9,412,406,257
72,180,037,834
19,902,471,117
-
Authorized share capital Baht 1.00 each
2,973 million ordinary shares of Baht 1.00 each, fully paid
Premium on ordinary shares Appropriated
21
Legal reserve
22
Other components of equity
23
Unappropriated
Total equity attributable to owners
2,293,784,247 962,076,164
75,734,998,906
326,766,989 16,036,200
3,687,914,226
431,365,867 -
16,036,200
9,859,808,324
232,962,016,479
133,268,291,389
26,197,270,533
37,123,022,295
4,997,459,800
4,997,459,800
4,997,459,800
4,997,459,800
2,973,095,330
2,973,095,330
2,973,095,330
2,973,095,330
22,388,093,275
22,372,276,085
22,388,093,275
22,372,276,085
21
Issued and paid-up share capital
Retained earnings
1,626,147,293
163,633,988,256
4,997 million ordinary shares of
Additional paid-in capital
2,554,402,991
of the Company
Non-controlling interests Total equity
Total liabilities and equity
500,000,000
500,000,000
500,000,000
500,000,000
16,471,015,050
22,313,204,401
12,761,597,893
19,308,356,485
42,568,883,449
48,376,332,251
38,698,279,629
45,210,297,677
42,708,334,083
48,492,981,783
38,698,279,629
45,210,297,677
236,679,794
139,450,634
275,670,350,562
217,756,435
116,649,532
181,761,273,172
75,493,131
-
64,895,550,162
56,569,777
-
82,333,319,972
Notes to the financial statements form an integral part of these statements
Notes to the financial statements form an integral part of these statements Annual Report 2016
112
FINANCIAL REPORT
19
Share capital
1,816,750
22,509,356,307
Spectrum licenses payable
Equity
-
57,533,292,483
3,345,111,037
Total non-current liabilities
44,592,133
69,328,028,223
52,576,667,378
Total liabilities
-
6,490,000,000
5,223,510,781
9,223,936
87,273,400,138
Other non-current liabilities
4,327,462,057
5,220,212,495
2,331,763,136
17
20
7,700,000,000
3,475,832,250
5,364,084,953
3,208,042,630
Long-term liabilities
Employee benefit obligations
December As at 31, December 2015 31, 2015
5,360,786,666
45,798,270
Total current liabilities
Non-current liabilities
December As at 31, December 2016 31, 2016
UNIT : BAHT
Statements of Profit or Loss
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Advanced Info Service Public Company LimitedSTATEMENTS and Its Subsidiaries OF PROFIT OR LOSS FOR THE YEAR ENDED DECEMBER
NOTES
Revenues
Revenues from rendering of services and equipment rentals
Revenue from sale of goods
NOTES 25, 34 34
Construction income from the Agreements for operations
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED
FOR THE YEAR ENDED DECEMBER 31 FINANCIAL STATEMENTS
2016
2015
2016
128,226,136,756
23,923,729,805
UNIT : BAHT SEPARATE UNIT : BAHT FINANCIAL STATEMENTS SEPARATE
FOR THE YEAR ENDED DECEMBER 31 FINANCIAL STATEMENTS
2015
2016
2015
-
Total revenues
31, 2016
2016
127,414,763,117
27,798,086,571 63,590,862
2015
4,949,542,510 -
-
31,530,538,627 185,224
63,590,862
152,149,866,561
155,276,440,550
4,949,542,510
31,594,314,713
(58,069,917,881)
(50,020,302,266)
(5,024,415,481)
(20,652,874,405)
(24,917,977,306)
(28,018,892,492)
-
Costs
Cost of rendering of services and equipment rentals
Revenue sharing expense
29, 34 1
Cost of sale of goods
Construction cost from the Agreements for operations
-
FINANCAIL REPORT
Total costs
Gross profit (loss) Selling and administrative expenses Selling expenses
29
Administrative expenses
29
Total selling and administrative expenses
Profit (loss) from services, equipment rentals and sales of goods
Investment income
Other operating income
Share of gain (loss) from investments in
26, 34
27, 34
an associate and a joint venture
9
Impairment loss on assets
10
Management benefit expenses
34
Net gain on foreign exchange rate Finance costs
(3,989,039)
30, 34
Profit before income tax
Income tax (expense) income Profit for the year
31
Profit attributable to:
Owners of the Company
Non-controlling interests
Earnings per share (in Baht) Basic earnings per share
(84,819,013,375)
69,157,982,335
70,457,427,175
(16,012,372,813)
(13,763,454,066)
(20,091,385,470)
39,382,155,456
50,366,041,705
364,175,929
447,704,704
203,951,212
291,108,353
23,896,565
(10,875,000)
277,161,087
228,779,748
-
(150,257,434)
-
(209,178,159)
(3,989,039)
-
(5,028,404,520) (78,862,010)
(21,698,796)
(1,197,651,951)
(1,219,350,747)
(1,298,212,757)
29,540,009,830 1,663,222,514 -
(6,716,227,755) (185,237)
(63,590,862)
(27,432,878,259) 4,161,436,454
(137,990,382)
(2,566,782,136)
(2,704,772,518)
1,456,663,936
38,313,574,249 509,177,054 -
-
(178,912,558)
(149,987,433)
(208,618,159)
21,865,404
(1,959,562,798)
35,864,943,829
49,154,018,553
29,158,821,763
39,198,145,509
30,689,644,321
39,154,851,902
29,961,969,184
38,596,843,530
30,666,538,425
39,152,410,435
29,961,969,184
38,596,843,530
30,689,644,321
39,154,851,902
29,961,969,184
38,596,843,530
10.31
13.17
10.08
12.98
(5,175,299,508)
32
Notes to the financial statements form an integral part of these statements
10.31
(9,999,166,651)
2,441,467
13.17
(618,075,795)
16,438,334
(4,236,138,986)
Notes to the financial statements form an integral part of these statements Advanced Info Service Public Company Limited
(6,900,983,669)
(13,190,401,801)
(29,775,826,879)
Diluted earnings per share
113
(63,590,862)
(82,991,884,226)
23,105,896
Profit for the year
(6,716,227,755)
803,147,421
-
10.08
(710,177,347)
(601,301,979)
-
12.98
Statements of Profit or Loss and Other Comprehensive Income
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Advanced Info Service Public Company Limited and Its Subsidiaries STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER
NOTES
31, 2016
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31
NOTES
2016
2016 30,689,644,321
Profit for the year
Other comprehensive income
2015
2015
39,154,851,902
UNIT : BAHT SEPARATE UNIT : BAHT FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31
2016
2015
2015
2016 29,961,969,184
38,596,843,530
Item that will never be reclassified subsequently to profit or loss
Actuarial gains (losses) from employee benefit obligation Income tax on item that will never be reclassified subsequently to profit or loss
20
-
31
-
Item that will be reclassified subsequently
-
(636,532,321)
-
129,188,610
-
(507,343,711)
14,012,680 (2,802,536)
-
11,210,144
to profit or loss
Net change in fair value of available-for-sale investments
net of income tax
Total comprehensive income for the year Total comprehensive income attributable to: Owners of the Company
Non-controlling interests
Total comprehensive income for the year
-
(7,731,308)
(7,731,308)
(515,075,019)
-
-
-
-
-
11,210,144
30,689,644,321
38,639,776,883
29,961,969,184
38,608,053,674
30,666,538,425
38,637,285,511
29,961,969,184
38,608,053,674
30,689,644,321
38,639,776,883
29,961,969,184
38,608,053,674
23,105,896
2,491,372
-
-
Notes to the financial statements form an integral part of these statements Notes to the financial statements form an integral part of these statements
Annual Report 2016
114
FINANCIAL REPORT
Other comprehensive income for the year,
-
-
115
Advanced Info Service Public Company Limited
Balance as at January 1, 2015
23
-
-
-
Total transactions with owners, recorded directly in equity
-
Total comprehensive income for the year 2,973,095,330
-
Other comprehensive income
Balance as at December 31, 2015
-
Profit
Comprehensive income for the year
-
-
-
Total Change in ownership interests in subsidiaries
33, 34
2,973,095,330
Liquidation of a subsidiary
Change in ownership interests in subsidiaries
Total Contributions by and distributions to owner of the company
Dividends
Share-based payment transaction
Contributions by and distributions to owner of the company
Transactions with owners, recorded directly in equity
Issued and share paid-up Notes capital Notes share capital
paid-up
Issued and
22,372,276,085
-
-
-
-
-
-
-
-
-
22,372,276,085
Share premium premium
Share
31, 2016
500,000,000
-
-
-
-
-
-
-
-
-
500,000,000
22,313,204,401
38,644,922,610
(507,487,825)
39,152,410,435
(37,042,012,632)
-
-
(37,042,012,632)
(37,042,012,632)
-
20,710,294,423
56,569,777
-
-
-
30,661,163
-
-
30,661,163
-
30,661,163
25,908,614
161,186,663
-
-
-
-
-
-
-
-
-
161,186,663
(5)
(7,637,099)
(7,637,099)
-
-
-
-
-
-
-
7,637,094
217,756,435
(7,637,099)
(7,637,099)
-
30,661,163
-
-
30,661,163
-
30,661,163
194,732,371
FOR THE YEAR ENDED DECEMBER 31, 2016 Retained earnings Other components of equity Other componentsFair of equity Retained earnings value Fair value Reserve for Gain on changes in Total other Total other Gain on Reserve for changes Legal sharedilution of available-for-sale components share based dilution of available-for-sale components Legal reserve Unappropriated based payment investment investments equity ofofequity investment Unappropriated payment reserve investments
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER
CONSOLIDATED FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN EQUITY
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Advanced Info Service Public Company Limited and Its Subsidiaries
Statements of Changes In Equity
FINANCAIL REPORT
48,376,332,251
38,637,285,511
(515,124,924)
39,152,410,435
(37,011,351,469)
-
-
(37,011,351,469)
(37,042,012,632)
30,661,163
46,750,398,209
Total equity
Total equity attributable to attributable to owners owners of the Company of the Company Non-
Noncontrolling interests interests
116,649,532
2,491,372
49,905
2,441,467
(198,156)
(7)
(7)
(198,149)
(198,149)
-
114,356,316
controlling
48,492,981,783
38,639,776,883
(515,075,019)
39,154,851,902
(37,011,549,625)
(7)
(7)
(37,011,549,618)
(37,042,210,781)
30,661,163
46,864,754,525
Totalequity equity Total
UNIT : BAHT
UNIT : BAHT
Balance as at January 1, 2016
23
-
Notes to the financial statements form an integral part of these statements
Notes to the financial statements form an integral part of these statements
2,973,095,330
-
Total comprehensive income for the year
Balance as at December 31, 2016
-
-
-
Profit
33, 34
2,973,095,330
Other comprehensive income
Comprehensive income for the year
in equity
Total transactions with owners, recorded directly
Dividends
Share-based payment transaction
Transactions with owners, recorded directly in equity
Issued and share paid-up Notes capital Notes share capital
paid-up
Issued and
22,388,093,275
-
-
-
15,817,190
-
15,817,190
22,372,276,085
Share premium premium
Share
Advanced Info Service Public Company Limited and Its Subsidiaries 31, 2016
500,000,000
-
-
-
-
-
-
500,000,000
16,471,015,050
30,666,538,425
-
30,666,538,425
(36,508,727,776)
(36,508,727,776)
-
22,313,204,401
75,493,131
-
-
-
18,923,354
-
18,923,354
56,569,777
161,186,663
-
-
-
-
-
-
161,186,663
-
-
-
-
-
5
5
(5)
5
5
236,679,794
-
18,923,354
-
18,923,354
217,756,435
FOR THE YEAR ENDED DECEMBER 31, 2016 Other components of equity Retained earnings Other componentsFair of value equity Retained earnings Fair value Reserve for Gain on changes in Total other Total other Gain on Reserve for changes Legal sharedilution of available-for-sale components share based dilution of available-for-sale components Legal reserve Unappropriated based payment investment investments equity ofof equity investment Unappropriated payment reserve investments
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER
CONSOLIDATED FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Statements of Changes In Equity (Continued)
FINANCIAL REPORT
Annual Report 2016
116
42,568,883,449
30,666,538,430
5
30,666,538,425
(36,473,987,232)
(36,508,727,776)
34,740,544
48,376,332,251
Total equity
Total equity attributable to attributable to owners owners the Company of ofthe Company
Non-
Noncontrolling interests interests
139,450,634
23,105,896
-
23,105,896
(304,794)
(304,794)
-
116,649,532
controlling
42,708,334,083
30,689,644,326
5
30,689,644,321
(36,474,292,026)
(36,509,032,570)
34,740,544
48,492,981,783
Total equity Total equity
UNIT : BAHT
UNIT : BAHT
117
Advanced Info Service Public Company Limited
Notes to the financial statements form an integral part of these statements
Balance as at December 31, 2016
Total comprehensive income for the year
Profit
Comprehensive income for the year
Total transactions with owners, recorded directly in equity
Dividends
Share-based payment transaction
Transactions with owners, recorded directly in equity
Balance as at January 1, 2016
Balance as at December 31, 2015
Total comprehensive income for the year
Other comprehensive income
Profit
Comprehensive income for the year
Total transactions with owners, recorded directly in equity
Dividends
Share-based payment transaction
Transactions with owners, recorded directly in equity
Balance as at January 1, 2015
22,372,276,085
23
33, 34
Notes
33, 34
2,973,095,330
-
-
-
-
22,388,093,275
-
-
15,817,190
-
15,817,190
22,372,276,085
2,973,095,330
-
Share 22,372,276,085 premium
-
-
31, 2016
Issued and paid-up 2,973,095,330 share capital
-
FOR THE- YEAR ENDED DECEMBER
SEPARATE FINANCIAL STATEMENTS
500,000,000
-
-
-
-
-
500,000,000
Legal 500,000,000 reserve
12,761,597,893
29,961,969,184
29,961,969,184
(36,508,727,776)
-
(36,508,727,776)
19,308,356,485
19,308,356,485 Unappropriated
38,608,053,674
(37,042,012,632)
-
(37,042,012,632)
17,742,315,443
Unappropriated Unappropriated
38,596,843,530 Retained earnings 11,210,144
-
-
-
-
500,000,000
Legal Legal
reserve reserve
- OF CHANGES IN EQUITY STATEMENTS (CONTINUED)
2,973,095,330
Share Share
premium premium
Retained earnings
FOR THE YEAR ENDED DECEMBER 31, 2016 Retained earnings
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
23
Notes Notes
Issued and paid-up paid-up share sharecapital capital
Issued and
31, 2016
SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER
SEPARATE FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN EQUITY
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
Advanced Info Service Public Company Limited and Its Subsidiaries
Statements of Changes In Equity
FINANCAIL REPORT
75,493,131
-
-
18,923,354
18,923,354 -
56,569,777
Other components of equity Reserve for share56,569,777 based payment
30,661,163
30,661,163 -
25,908,614
Other components ofofequity equity Reserve for Reserve for shareshare based based payment payment
Other components
11,210,144
29,961,969,184 38,698,279,629
29,961,969,184
(36,473,987,232)
34,740,544
(36,508,727,776)
45,210,297,677
45,210,297,677 Total equity
38,608,053,674
38,596,843,530
UNIT : BAHT
(37,011,351,469)
30,661,163
(37,042,012,632)
43,613,595,472
Total equity Total equity
UNIT : BAHT
UNIT : BAHT
Statements of Cash Flows
Advanced Info Service Public Company Limited and Its Subsidiaries
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
UNIT : BAHT
STATEMENTS OF CASH FLOWS
31, 2016 CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR PERIOD ENDED DECEMBER
NOTES
Cash flows from operating activities
NOTES
Profit for the year
Adjustments for
Depreciation
Amortization of intangible assets Impairment loss on assets
Gain on write-off investment Investment income Finance costs
(Reversal of) doubtful accounts and bad debts expenses
Share-based payment transaction
(Reversal of) allowance for obsolete,
decline in value and write-off inventories
Allowance for unused equipment
Unrealized (gain) loss on foreign exchange rate
Cash provided by operation before
changes in operating assets and liabilities
Changes in operating assets and liabilities
2016
2016
11, 29
12, 14, 15, 29 10
26, 34
15,464,345,085 6,202,967,902 -
-
(203,951,212)
Accrued revenue sharing expenses
Unearned income - mobile phone service Advanced received from customers
Other current liabilities
Swap and forward contracts receivable Other non-current liabilities
Cash generated from operating activities
Income tax paid
Net cash provided by operating activities
39,154,851,902
29,961,969,184
10,153,064,049
127,013,270
10,342,113,949 -
(291,108,353)
25,707,184 -
(29,540,009,830)
289,207,391
8,647,077,182
178,912,558
(4,627)
(38,313,574,249)
1,537,699,855
1,315,294,405
30,661,163
34,740,544
30,661,163
8
301,549,380
206,635,330
(35,986,900)
(20,279,330)
23,070,619
302,482,364
15,111,907
200,707,183
(23,896,515)
10,875,000
9
31
34,740,544
135,772,815 (29,634,350)
-
618,075,795
38,596,843,530
7
23
(2,165,297)
-
25,736,068
(25,967,745)
5,175,299,508
9,999,166,651
(803,147,421)
63,543,746,938
73,209,335,326
375,340,691
1,672,451,340
Trade and other payables
2015
1,959,562,798
Inventories
Other non-current assets
2015
2016 2016
4,236,138,986
1,484,097,082
Other current assets
FINANCIAL STATEMENTS
30, 34
Specifically-designated bank deposits Trade and other receivables
2015 2015
SEPARATE FOR THE YEAR ENDED DECEMBER 31
(737,952,157)
-
-
710,177,347
(3,823)
-
(16,206,033) -
601,301,979 10,904,820,271 -
731,903,785
(2,046,091,556)
3,231,251,687
1,022,641,449
(146,711,825)
707,059,084
(714,276,630)
(415,145,123)
(559,596,118)
(35,368,197)
(584,178,592)
(715,184)
(329,091,314)
2,600,497
(2,714,489,868) (622,142,330)
3,289,463,173
2,018,694,672
876,279,494
148,587,736
(3,298,287)
(1,484,097,082)
233,928,085
737,952,157
23,006,431
(344,345,910)
276,107,578
97,008,392
102,801,487
90,216,995
74,551,818
(212,730,863)
(3,298,287) -
18,431,096
(115,117,009)
7,517,936,253
33,809,950
(2,206,470)
233,928,084 -
10,452,864
23,340,663
71,537,703,885
69,923,989,717
3,624,259,713
16,534,938,961
61,635,456,774
61,629,401,777
3,343,977,686
15,526,399,465
(9,902,247,111)
(8,294,587,940)
(280,282,027)
(1,008,539,496)
Annual Report 2016
118
FINANCIAL REPORT
Income tax expense (income)
FINANCIAL STATEMENTS
30,689,644,321
Loss on disposals and write-off of assets
Share of (gain) of an associate and a joint venture
CONSOLIDATED FOR THE YEAR ENDED DECEMBER 31
SEPARATEUNIT : BAHT FINANCIAL STATEMENTS
Statements of Cash Flows (Continued) Advanced Info Service Public Company Limited and Its Subsidiaries
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEAR PERIOD ENDED DECEMBER
31, 2016
CONSOLIDATED FINANCIAL STATEMENTS
NOTES
Cash flows from investing activities Purchase of property, plant, equipment and other intangible assets Sale of equipment Purchase of intangible assets under the Agreements for operations Payment of spectrum license Net (increase) decrease in short-term loans to related parties Cash received from return of capital from subsidiary Cash received from liquidation of subsidiary Additional investments in associate, joint venture and subsidiary Net (increase) decrease in other investments Dividend received Interest received
NOTES
Advanced Info Service Public Company Limited
FINANCAIL REPORT
(146,548,316) (24,159,783,315)
700,000,000
4
Notes to the financial statements form an integral part of these statements
119
(8,069,266,618)
(2,568,102,986) (201,233,344) (47,303,990)
Supplemental disclosures of cash flow information Non-cash transactions Outstanding debts arising from investments in capital expenditures and spectrum license
Notes to the financial statements form an integral part of these statements
(32,107,980,096) 22,119,868
(15,000,000) 303,674,045 215,749,753 (55,101,546,430)
34
2015 2015
(47,554,102,096) 17,398,486
9, 10 6
Effect of exchange rate changes on balances held in foreign currencies
Cash and cash equivalents as at December 31,
2016
2016
-
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents Cash and cash equivalents as at January 1,
FINANCIAL STATEMENTS
34
Net cash provided by (used in) investing activities
Cash flows from financing activities Interest paid Other finance costs paid Payments of liabilities under finance lease agreements Net increase (decrease) in short-term borrowings from financial institutions Net increase (decrease) in short-term borrowings from related parties Proceed of long-term liabilities Repayments of long-term liabilities Cash returned paid to non-controlling interests from liquidation of subsidiaries Dividend paid
CONSOLIDATED FOR THE YEAR ENDED DECEMBER 31
95,000,000 -
UNIT : BAHT SEPARATE UNIT : BAHT FINANCIAL STATEMENTS SEPARATE FOR THE YEAR ENDED DECEMBER 31 FINANCIAL STATEMENTS
2016
2016
(44,280,489) 33,946,725 -
2015 2015
(76,708,367) 375,608,653 (146,548,316) -
5,000,000,000 -
(8,654,140,000) 74,999,994 11,572,116
(10,875,000) 1,230,043,637 40,000,000 282,277,603 (54,755,745,619)
(60,000,000) (1,000,000) 35,860,268,711 1,917,532,686 42,706,467,633
(14,000,000) 16,800,110,540 1,506,581,952 9,877,476,572
(1,612,268,572) (178,230,431) (42,625,067)
(519,741,393) (92,159) (13,985,714)
(659,025,441) (3,755,693) (23,454,382)
8,500,000,000
(2,000,000,000)
7,700,000,000
41,153,737,500 (7,699,136,051)
21,500,000,000 (2,392,022,730)
(50,000,000) (7,699,135,730)
6,490,000,000 (2,392,022,730)
(36,508,870,377) (5,170,909,248)
(7) (37,042,102,092) (11,267,248,899)
(36,508,727,776) (46,791,682,772)
(37,042,012,632) (25,930,270,878)
(1,773,095) 1,361,228,001 9,864,912,703 11,226,140,704
439,042 (4,393,153,699) 14,258,066,402 9,864,912,703
(2,374,740) (743,612,193) 1,153,323,176 409,710,983
425,669 (525,969,172) 1,679,292,348 1,153,323,176
94,784,548,815
30,055,264,117
559,223
44,180,458
Notes to the Financial Statements Advanced Info Service Public Company Limited and Its Subsidiaries For the year ended December 31, 2016 Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
General information Basis of preparation of the financial statements Significant accounting policies Cash and cash equivalents Specifically-designated bank deposits Other investments Trade and other receivables Inventories Investments in an associate and a joint venture Investments in subsidiaries Property, plant and equipment Assets under the Agreements for operations Goodwill Spectrum licenses Other intangible assets Deferred tax assets Interest-bearing liabilities Trade and other payables Spectrum licenses payable Employee benefit obligations Share capital Legal reserve Other components of equity Segment financial information Revenue from rendering of services under the NBTC’s regulation Investment income Other operating income Provident fund Expense by nature Finance costs Income tax expense Earnings per share Dividends Related parties Financial instruments Commitments with non-related parties Contingent liabilities Significant events, commercial disputes and litigations Events after the reporting period Approval of financial statements
FINANCIAL REPORT
Notes
Annual Report 2016
120
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THEInfo YEAR DECEMBER Advanced ServiceENDED Public Company Limited 31, and Its2016 Subsidiaries
Notes to the Financial Statements
For the year ended December 31, 2016
GENERAL INFORMATION INFORMATION 1. GENERAL 1.
Advanced Info Service Public Company Limited (the “Company”) is incorporated in Thailand and has its registered office at 414 AIS Tower 1, Phaholyothin Road, Phayathai, Bangkok, Thailand. The Company was listed on the Stock Exchange of Thailand in November 1991. Intouch Holdings Public Company Limited is a major shareholder, holding 40.45% (December 31, 2015: 40.45%) of the authorized share capital of the Company and is incorporated in Thailand. SingTel Strategic Investments Pte Ltd. is a shareholder, holding 23.32% (December 31, 2015: 23.32%) of the authorized share capital of the Company and is incorporated in Singapore. The major principal business operations of the Company and its subsidiaries (“the Group”) are summarized as follows:
FINANCAIL REPORT
1) The operation of a 900 MHz CELLULAR TELEPHONE SYSTEM as the operator. The Company has been granted permission from TOT Public Company Limited (“TOT”), under the Agreement for operation dated March 27, 1990, to operate and service of Cellular Mobile Telephone, either analogy (NMT) or Digital GSM, 900 MHz frequency nationwide, parallel operation for 25 years since October 1, 1990, being the first commercial operating date of service. The Agreement ended on September 30, 2015. The Company is obliged to comply with various conditions and pay revenue sharing in accordance with the Agreement. Under the Agreement, the Company shall be entitled to immediately transfer the ownership right of its tools and equipment or assets for operating the 900 MHz Cellular System to TOT when the installation has been completed and the Company shall pay TOT annual revenue sharing in accordance with the Agreement at the percentage of annual revenues and any benefit from the mobile phone service prior to deducting any expenses and any tax or the minimum annual revenue sharing stipulated in the Agreement. The Agreement does not specify a minimum cumulative amount over the term of the Agreement. The percentages of the service revenues and minimum annual revenue sharing for each years are as follows:
121
Year
Year
Percentage Percentageofof revenues revenues
Minimum revenue sharing sharing Minimum annual annual revenue (in million Baht) (in million Baht)
1-5 6 - 10 11 - 15 16 - 20 21 -25
15 20 25 30 30
13 to 147 253 to 484 677 to 965 1,236 to 1,460 1,460
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
The Agreement for operation of the Company was expired on September 30, 2015. Thus, on September 17, 2015, the National Broadcasting and Telecommunications Commission (“NBTC”) has announced a temporary customer protection measure after the Agreement expired (Issue no.2) to assign the operator to provide continuing services to the subscribers. The operator must comply with the rules and conditions set forth in the announcement. On October 15, 2015, NBTC submitted a letter to the Company on determination on the end of customer protection period on 900 MHz and concluded that the Company must provide temporary continuing service until November 19, 2015. Later, on November 2, 2015, the National Telecommunication Commission (“NTC”) decided to postpone the auction of 900 MHz license from November 12, 2015 to December 15, 2015.
Later, on June 30, 2016, NBTC announced the ending of remedy period for customers who on 900 MHz after Advanced Wireless Network Co., Ltd. (“AWN”), a subsidiary, paid the first instalment of 900 MHz license on June 28, 2016 which has been granted permission from NBTC on June 30, 2016. 2) The operation of a DATAKIT VIRTUAL CIRCUIT SWITCH as the operator. Advanced Datanetwork Communications Co., Ltd. (“ADC”), an indirect subsidiary, has been granted permission from TOT Public Company Limited (“TOT”), under the Agreement dated September 19, 1989, for rendering services for DATAKIT VIRTUAL CIRCUIT SWITCH in the area of the Metropolitan Telephone Exchange. Under the Agreement, ADC shall be entitled to immediately transfer the ownership right of its tools and equipment or assets for operation of DATAKIT System to TOT when the installation has been completed and ADC shall pay TOT annual revenue sharing in accordance with the Agreement at the percentage of annual revenues and any benefit from service of DATAKIT VIRTUAL CIRCUIT SWITCH prior to deducting any expenses and any tax or the minimum annual revenue sharing stipulated in the Agreement.
Annual Report 2016
122
FINANCIAL REPORT
On April 12, 2016, the National Council for Peace and Order (“NCPO”) issued an order no. 16/2559 on Spectrum Auction for Telecommunication Business. Such order mandates NBTC to set up 900 MHz spectrum auction on May 27, 2016, and extend the remedy period of 900 MHz to be effective until June 30, 2016 or until the official date the NBTC shall grant the spectrum license to the bidding winner, whichever comes first.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
ADC and TOT have mutually agreed to amend the Agreement and signed the Supplemental Agreement on September 25,1997 to extend the validity period from 10 years to 25 years (such validity period will be ended on September 24, 2022) and waive the collection of annual revenue sharing under the agreements effective from September 25, 1997. ADC issued 10.75 million ordinary shares at a par value of Baht 10 (11.23% of total shares) to TOT on March 17, 1998 in consideration of such waiver. As at December 31, 2016, TOT owns 48.12% of ADC’s total shares (2015: 48.12%). 3) The operation of an 1800 MHz CELLULAR TELEPHONE SYSTEM as the operator. Digital Phone Company Limited (“DPC”), a subsidiary, has been granted permission from CAT Telecom Public Company Limited (“CAT”), under the Agreement for operation dated on November 19, 1996 (“the Agreement”), to operate and service Cellular Mobile Telephone: Digital PCN (PERSONAL COMMUNICATION NETWORK) 1800, frequency between 1747.9 MHz to 1760.5 MHz and 1842.9 MHz to 1855.5 MHz, nationwide. DPC started the operation commencing from May 28, 1997, ending September 15, 2013 and DPC was obliged to comply with various conditions and pay revenue sharing in accordance with the Agreement.
FINANCAIL REPORT
Under the Agreement, DPC was entitled to immediately transfer the ownership right of its machineries, all equipment and tools or assets for operation to CAT upon installation completion and DPC paid CAT the annual revenue sharing at the percentage of annual revenues and any benefit in according with the accrual basis from the mobile phone service prior to deducting any expenses and any tax and fees which the minimum revenue sharing must accumulate, over the term of the Agreement, not less than Baht 5,400 million as follows: Year
Year
Percentage of Percentage of revenues revenues
Minimum sharing Minimumannual annual revenue revenue sharing (in(inmillion million Baht) Baht)
1 2-9 10 - 14 15 - 16
25 20 25 30
9 60 to 320 350 to 650 670
DPC paid the revenue sharing to CAT through the agreement period in the total amount of Baht 15,853 million.
123
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
The Agreement was expired on September 15, 2013. Thus, on August 16, 2013, the National Broadcast and Telecommunication Commission (“NBTC”) has announced a temporary customer protection measure after the Agreement expired to assign the operator to provide continuing services to the subscribers for up to a further 1 year commencing from the Agreement expiration date. The operator must comply with the rules and conditions set forth in the announcement. On July 17, 2014, the National Council for Peace and Order (“NCPO”) has announced an order No. 94/2557 “Suspension the Implementation of the Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Communications Services” to instruct NBTC to postpone an auction for spectrum licenses for 1 year commencing from the order date. During the postpone period, the operator has to comply with the NBTC’s announcement on August 16, 2013 to provide continuing services to the subscribers. The application of those rules and conditions has not been clarified in detail by NBTC yet (including expenses that may be deducted in arriving at a notional profit payable to the State). Consequently, the outcome of complying with this extension on DPC is currently uncertain.
4) The operation of a 2.1 GHz CELLULAR TELEPHONE SYSTEM as the operator. Advanced Wireless Network Co., Ltd. (“AWN”), a subsidiary, has been granted permission from the Office of the National Broadcasting and Telecommunications Commission (“NBTC”), under the license certificate (“License”) dated on December 7, 2012, to operate and service Cellular Mobile Telephone, frequency between 1950 MHz to 1965 MHz and 2140 MHz to 2155 MHz, nationwide in accordance with the license certificate no. NBTC/FREQ/TEL/55/1. AWN started the operation commencing from December 7, 2012, ending December 6, 2027 and AWN is obliged to comply with various conditions and pay fees within the time period as specified in the License. License of Spectrum for Telecommunications Service in the Frequency Band of 1800 MHz. On November 17, 2015, AWN has been granted permission from the Office of the National Broadcasting and Telecommunications Commission (“NBTC”), under the license certificate (“License”) dated on November 25, 2015, to operate and service Cellular Mobile Telephone, frequency between 1725 MHz to 1740 MHz and 1820 MHz to 1835 MHz, nationwide in accordance with the license certificate no. NBTC/FREQ/TEL/55/1 (Addendum no.1). AWN started the operation commencing from November 26, 2015, ending September 15, 2033 and AWN is obliged to comply with various conditions and pay fees within the time period as specified in the License.
Annual Report 2016
124
FINANCIAL REPORT
On November 24, 2015, NBTC has announced the end of a temporary customer protection period on 1800 MHz on November 26, 2015.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
License of Spectrum for Telecommunications Service in the Frequency Band of 900 MHz.
On May 27, 2016, AWN has been granted permission from the Office of the National Broadcasting and Telecommunications Commission (“NBTC”), under the license certificate (“License”) dated on June 30, 2016, to operate and service Cellular Mobile Telephone, frequency between 895 MHz to 905 MHz and 940 MHz to 950 MHz, nationwide in accordance with the license certificate no. NBTC/FREQ/TEL/55/1 (Addendum no.2) dated June 30, 2016. AWN has started the operation commencing from July 1, 2016, ending June 30, 2031 and AWN is obliged to comply with various conditions and pay fees within the time period as specified in the License. Details of the Company’s subsidiaries, associate and joint venture as at December 31, are as follows: Name of the entities
Name of the entities FINANCAIL REPORT
Subsidiaries Advanced Contact Center Co., Ltd.
125
Type of business
Type of business
Ownership interest Country Country of of Ownership interest(%) (%) incorporation incorporation 2016 2015 2016 2015
Service provider of call center
Thailand
99.99
99.99
Digital Phone Co., Ltd.
Service provider of digital mobile phone system
Thailand
98.55
98.55
Advanced Magic Card Co., Ltd.
Distributor of cash card business
Thailand
99.99
99.99
Advanced Mpay Co., Ltd.
Service provider of electronic payment and cash card
Thailand
99.99
99.99
AIN GlobalComm Co., Ltd.
Service provider of international telephone service/gateway
Thailand
99.99
99.99
Advanced Wireless Network Co., Ltd.
Service provider of cellular telephone network in 2.1 GHz, 900 MHz and 1800 MHz frequency, distributor of handsets and international telephone service, network operator, telecom service operator and national broadcasting network services.
Thailand
99.99
99.99
Super Broadband Network Co., Ltd.
Network operator and telecom service operator i.e. internet (ISP), international & national internet gateway, International Private Leased Circuit (IPLC), Internet Protocol Virtual Private Network (IP VPN), voice over IP, and IP Television
Thailand
99.99
99.99
Wireless Device Supply Co., Ltd.
Importer and distributor of handset and accessories
Thailand
99.99
99.99
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Name entities Nameofofthe the entities Subsidiaries (Continued) Fax Lite Co., Ltd.
Type ofofbusiness Type business
Country of incorporation
Ownership interest (%) interest Country of Ownership (%) incorporation 2016 2015 2016 2015
Operate in land and building rental and service, and related facilities
Thailand
99.98
99.98
MIMO Tech Co., Ltd.
Operate IT, content aggregator, and outsourcing service for billing and collection
Thailand
99.99
99.99
Advanced Broadband Network Co., Ltd.
Currently not start the operation
Thailand
99.99
99.99
Thailand
51.00
51.00
Indirect Subsidiaries Advanced Datanetwork Communications Service provider of online data Co., Ltd. communications service via telephone land line and optical fiber
Transmission network provider
Thailand
29.00
29.00
Joint Venture Amata Network Co., Ltd.
Currently not start the operation
Thailand
60.00
-
The Group and the Company have extensive transactions and relationships with the related companies. Accordingly, the accompanying financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations that would have occurred if the Group and the Company had operated without such affiliation.
2.2. BASIS BASIS FOR FOR PREPARATION AND FINANCIAL STATEMENTS AND PRESENTATION PRESENTATIONOF OFTHE THE FINANCIAL STATEMENTS 2.1
The Group and the Company maintain its accounting records in Thai Baht and prepares its statutory financial statements in the Thai language in conformity with Thai Financial Reporting Standards and General Accepted Accounting Principal in Thailand.
2.2
The Group’s and the Company’s financial statements have been prepared in accordance with the Thai Accounting Standard (“TAS”) No. 1 (Revised 2015) “Presentation of Financial Statements”, which was effective for financial periods beginning on or after January 1, 2016 onward, and the Regulation of The Stock Exchange of Thailand (“SET”) dated January 22, 2001, regarding the preparation and submission of financial statements and reports for the financial position and results of operations of the listed companies B.E. 2544 and the Notification of the Department of Business Development dated September 28, 2011 regarding “The Brief Particulars in the Financial Statement B.E. 2554”.
Annual Report 2016
126
FINANCIAL REPORT
Associate Information Highway Co., Ltd.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
2.3
The financial statements have been prepared under the historical cost convention except as disclosed in the significant accounting policies.
2.4
Below is a summary of new Thai Financial Reporting Standards that became effective in the current accounting year and those that will become effective in the future. 1)
Adoption of new and revised Thai Financial Reporting Standards The Federation of Accounting Professions has issued the Notifications regarding Thai Financial Reporting Standards (“TFRSs”) which are effective for the financial statements for the period beginning on or after January 1, 2016 onwards, as follow:
FINANCAIL REPORT
Thai Accounting Standards (“TAS”) TAS 1 (Revised 2015) Presentation of Financial Statements TAS 2 (Revised 2015) Inventories TAS 7 (Revised 2015) Statement of Cash Flows TAS 8 (Revised 2015) Accounting Policies, Changes in Accounting Estimates and Errors TAS 10 (Revised 2015) Events after the Reporting Period TAS 11 (Revised 2015) Construction Contracts TAS 12 (Revised 2015) Income Taxes TAS 16 (Revised 2015) Property, Plant and Equipment TAS 17 (Revised 2015) Leases TAS 18 (Revised 2015) Revenue TAS 19 (Revised 2015) Employee Benefits TAS 20 (Revised 2015) Accounting for Government Grants and Disclosure of Government Assistance TAS 21 (Revised 2015) The Effects of Changes in Foreign Exchange Rate TAS 23 (Revised 2015) Borrowing Costs TAS 24 (Revised 2015) Related Party Disclosures TAS 26 (Revised 2015) Accounting and Reporting by Retirement Benefit Plans TAS 27 (Revised 2015) Separate Financial Statements TAS 28 (Revised 2015) Investments in Associates and Joint Ventures TAS 29 (Revised 2015) Financial Reporting in Hyperinflationary Economies TAS 33 (Revised 2015) Earnings per Share TAS 34 (Revised 2015) Interim Financial Reporting TAS 36 (Revised 2015) Impairment of Assets TAS 37 (Revised 2015) Provisions, Contingent Liabilities and Contingent Assets TAS 38 (Revised 2015) Intangible Assets TAS 40 (Revised 2015) Investment Property TAS 41 Agriculture
127
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 Thai Financial Reporting Standards (“TFRS”) TFRS 2 (Revised 2015) Share-based Payment TFRS 3 (Revised 2015) Business Combinations TFRS 4 (Revised 2015) Insurance Contracts TFRS 5 (Revised 2015) Non-current Assets Held for Sale and Discontinued Operations TFRS 6 (Revised 2015) Exploration for and Evaluation of Mineral Resources TFRS 8 (Revised 2015) Operating Segments TFRS 10 (Revised 2015) Consolidated Financial Statements TFRS 11 (Revised 2015) Joint Arrangements TFRS 12 (Revised 2015) Disclosure of Interests in Other Entities TFRS 13 (Revised 2015) Fair Value Measurement
Thai Financial Reporting Standard Interpretations (“TFRIC”) TFRIC 1 (Revised 2015) Changes in Existing Decommissioning, Restoration and Similar Liabilities TFRIC 4 (Revised 2015) Determining whether an Arrangement contains a Lease TFRIC 5 (Revised 2015) Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds TFRIC 7 (Revised 2015) Applying the Restatement Approach under TAS 29 (Revised 2015) Financial Reporting in Hyperinflationary Economies TFRIC 10 (Revised 2015) Interim Financial Reporting and Impairment TFRIC 12 (Revised 2015) Service Concession Arrangements TFRIC 13 (Revised 2015) Customer Loyalty Programmes TFRIC 14 (Revised 2015) TAS 19 (Revised 2015) - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction TFRIC 15 (Revised 2015) Agreements for the Construction of Real Estate TFRIC 17 (Revised 2015) Distributions of Non-cash Assets to Owners TFRIC 18 (Revised 2015) Transfers of Assets from Customers TFRIC 20 (Revised 2015) Stripping Costs in the Production Phase of a Surface Mine TFRIC 21 Levies Guideline on Accounting Guideline on Accounting regarding Recognition and Measurement of Bearer Plants Guideline on Accounting for Insurance Business regarding Designation of Financial Instruments at Fair Value through Profit or Loss
Above TFRSs have no material impact on these financial statements.
Annual Report 2016
128
FINANCIAL REPORT
Thai Accounting Standards Interpretations (“TSIC”) TSIC 10 (Revised 2015) Government Assistance - No Specific Relation to Operating Activities TSIC 15 (Revised 2015) Operating Leases - Incentives TSIC 25 (Revised 2015) Income Taxes - Changes in the Tax Status of an Entity or its Shareholders TSIC 27 (Revised 2015) Evaluating the Substance of Transactions Involving the Legal Form of a Lease TSIC 29 (Revised 2015) Service Concession Arrangements : Disclosures TSIC 31 (Revised 2015) Revenue - Barter Transactions Involving Advertising Services TSIC 32 (Revised 2015) Intangible Assets - Web Site Costs
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
2)
Thai Financial Reporting Standards announced in the Royal Gazette but not yet effective
The Federation of Accounting Professions has issued the Notifications regarding Thai Financial Reporting Standards (“TFRSs”) which are effective for the financial statements for the period beginning on or after January 1, 2017 onwards, as follow
FINANCAIL REPORT
Thai Accounting Standards (“TAS”) TAS 1 (Revised 2016) Presentation of Financial Statements TAS 2 (Revised 2016) Inventories TAS 7 (Revised 2016) Statement of Cash Flows TAS 8 (Revised 2016) Accounting Policies, Changes in Accounting Estimates and Errors TAS 10 (Revised 2016) Events after the Reporting Period TAS 11 (Revised 2016) Construction Contracts TAS 12 (Revised 2016) Income taxes TAS 16 (Revised 2016) Property, Plant and Equipment TAS 17 (Revised 2016) Leases TAS 18 (Revised 2016) Revenue TAS 19 (Revised 2016) Employee Benefits TAS 20 (Revised 2016) Accounting for Government Grants and Disclosure of Government Assistance TAS 21 (Revised 2016) The Effects of Changes in Foreign Exchange Rates TAS 23 (Revised 2016) Borrowing Costs TAS 24 (Revised 2016) Related Party Disclosures TAS 26 (Revised 2016) Accounting and Reporting by Retirement Benefit Plans TAS 27 (Revised 2016) Separate Financial Statements TAS 28 (Revised 2016) Investments in Associates and Joint Ventures TAS 29 (Revised 2016) Financial Reporting in Hyperinflationary Economies TAS 33 (Revised 2016) Earnings Per Share TAS 34 (Revised 2016) Interim Financial Reporting TAS 36 (Revised 2016) Impairment of Assets TAS 37 (Revised 2016) Provisions, Contingent Liabilities and Contingent Assets TAS 38 (Revised 2016) Intangible Assets TAS 40 (Revised 2016) Investment Property TAS 41 (Revised 2016) Agriculture TAS 104 (Revised 2016) Accounting for Troubled Debt Restructuring Accounting for Investments in Debt and Equity Securities TAS 105 (Revised 2016) TAS 107 (Revised 2016) Financial Instruments Disclosure and Presentation Thai Financial Reporting Standards (“TFRS”) TFRS 2 (Revised 2016) Share-based Payment TFRS 3 (Revised 2016) Business Combinations TFRS 4 (Revised 2016) Insurance Contracts TFRS 5 (Revised 2016) Non-current Assets Held for Sale and Discontinued Operations TFRS 6 (Revised 2016) Exploration for and Evaluation of Mineral Resources TFRS 8 (Revised 2016) Operating Segments TFRS 10 (Revised 2016) Consolidated Financial Statements TFRS 11 (Revised 2016) Joint Arrangements TFRS 12 (Revised 2016) Disclosure of Interests in Other Entities TFRS 13 (Revised 2016) Fair Value Measurement
129
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 Thai Accounting Standard Interpretations (“TSIC”) TSIC 10 (Revised 2016) Government Assistance - No Specific Relation to Operating Activities TSIC 15 (Revised 2016) Operating Leases - Incentives TSIC 25 (Revised 2016) Income Taxes - Changes in the Tax Status of and Enterprise or its Shareholders TSIC 27 (Revised 2016) Evaluating the Substance of Transactions in the Legal Form of a Lease TSIC 29 (Revised 2016) Service Concession Arrangements: Disclosures TSIC 31 (Revised 2016) Revenue - Barter Transactions Involving Advertising Services TSIC 32 (Revised 2016) Intangible Assets - Web Site Costs
FINANCIAL REPORT
Thai Financial Reporting Standard Interpretations (“TFRIC”) TFRIC 1 (Revised 2016) Changes in Existing Decommissioning, Restoration and Similar Liabilities TFRIC 4 (Revised 2016) Determining whether an Arrangement contains a Lease TFRIC 5 (Revised 2016) Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds TFRIC 7 (Revised 2016) Applying the Restatement Approach under TAS 29 Financial Reporting in Hyperinflationary Economies TFRIC 10 (Revised 2016) Interim Financial Reporting and Impairment TFRIC 12 (Revised 2016) Service Concession Arrangements TFRIC 13 (Revised 2016) Customer Loyalty Programmes TFRIC 14 (Revised 2016) TAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction TFRIC 15 (Revised 2016) Agreements for the Construction of Real Estate TFRIC 17 (Revised 2016) Distributions of Non - cash Assets to Owners TFRIC 18 (Revised 2016) Transfers of Assets from Customers TFRIC 20 (Revised 2016) Stripping Costs in the Production Phase of a Surface Mine TFRIC 21 (Revised 2016) Levies Guideline of Accounting Guideline of accounting for derecognition of financial assets and financial liabilities
The Group’s and the Company’s management will adopt such TFRSs in the preparation of the Group’s and the Company’s financial statements when it becomes effective. The Group’s and the Company’s management have assessed the impact of this TFRS and believes that it will not have material impact on the financial statements for the period in which it is initially applied.
Annual Report 2016
130
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 SIGNIFICANT ACCOUNTING ACCOUNTING POLICIES POLICIES 3.3. SIGNIFICANT
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1 3.1
Basis of Basis of consolidation consolidation The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interests in associate and joint venture.
Business combinations combinations Business The Group and the Company apply the acquisition method for all business combinations when control is transferred to the Group other than those with entities under common control.
FINANCAIL REPORT
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group and the Company take into consideration potential voting rights that currently are exercisable. The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in determining the acquisition date and determining whether control is transferred from one party to another. Goodwill is measured as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group and the Company to the previous owners of the acquiree, and equity interests issued by the Group and the Company. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing relationships between the Group and the Company and the acquiree, then the lower of the termination amount, as contained in the agreement, and the value of the off-market element is deducted from the consideration transferred and recognized in other expenses. When share-based payment awards exchanged (replacement awards) for awards held by the acquiree’s employees (acquiree’s awards) relate to past services, then a part of the market-based measure of the awards replaced is included in the consideration transferred. If they require future services, then the difference between the amount included in consideration transferred and the market-based measure of the replacement awards is treated as post-combination compensation cost.
131
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably. The Group and the Company measure any non-controlling interest (NCI) at its proportionate interest in the identifiable net assets of the acquiree. Transaction costs that the Group and the Company incur in connection with a business combination, such as legal fees, and other professional and consulting fees are expensed as incurred.
Acquisitions from from entities entities under Acquisitions under common commoncontrol control Business combinations of entities or businesses under common control are accounted for using a method similar to the pooling of interest method and in accordance with the Guideline issued in 2009 by the Federation of Accounting Professions.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
Loss of of control control Loss When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any resulting gain or loss is recognized in the statement of profit or loss and the statement of profit or loss and other comprehensive income. Any interest retained in the former subsidiary is measured at fair value when control is lost.
Interests in equity -- accounted Interests accountedinvestees investees The Group’s interests in equity-accounted investees comprise interests in associates and joint venture. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The investment in joint venture is accounted for in the consolidated financial statements using the equity method and is recognized initially at cost. Annual Report 2016
132
FINANCIAL REPORT
Subsidiaries Subsidiaries
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Interests in associates and joint venture are accounted for using the equity method. They are recognized initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of profit or loss of equity-accounted investees in the profit or loss and other comprehensive income, until the date on which significant influence or joint control ceases.
Transactions eliminated Transactions eliminated on onconsolidation consolidation
FINANCAIL REPORT
Intra-group balances and transactions, and any unrealized income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with equityaccounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. 3.2 3.2
Foreign currencies currencies Foreign Foreign currency currencytransactions transactions Transactions in foreign currencies are translated to the functional currency (Thai Baht) of the Group at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognized in the statement of profit or loss. Non-monetary assets and liabilities measured at cost in foreign currencies are translated to the functional currency using the foreign exchange rates ruling at the dates of the transactions.
3.3 3.3
Derivative financial financial instruments instruments Derivative The Group and the Company use financial instruments to manage exposure to fluctuations in foreign currency exchange and interest rates. These instruments, which mainly comprise forward foreign currency contracts, cross currency swap agreements and interest rate swap are recorded in the financial statements on the contract date. The purpose of these instruments is to mitigate risk. Swap and forward contracts protect the Group and the Company from fluctuations in exchange rates by establishing the rate at which a foreign currency asset or liability will be settled. Swap and forward contracts are recorded as swap and forward contracts receivable and payable on inception, and are translated at the end of the reporting period exchange rate. Unrealized gains or losses on transactions are recognized in the statement of profit or loss. Premiums or discounts are amortized in the statement of profit or loss on a straight-line basis over the contract period.
133
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Interest rate derivatives help the Group and the Company to better manage effects from fluctuations in floating interest rates. Any differential to be received or paid on an interest rate derivative is recognized as a component of interest income or expense over the period of such instrument. Gains or losses of early termination of interest rate derivatives or on repayment of the borrowing are recognized in the statement of profit or loss.
3.4 Cash 3.4 Cashand andcash cashequivalents equivalents
Cash and cash equivalents comprise cash, cash at banks type current accounts and saving accounts excluding cash at banks used as collateral and highly liquid shortterm investments with original maturities of three months or less.
3.5 Trade Trade and and other 3.5 otherreceivables receivables
Trade and other receivables are stated at cost net of allowance for doubtful accounts.
3.6 Inventories Inventories 3.6
Inventories comprise mobile phones, refill cards, sim cards and spare parts used for repairs and services. Inventories are stated at the lower of cost and net realizable value. Cost of inventories are calculated by using moving weighted average method. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs to complete and to make the sale. An allowance for obsolete are decline in value are made for all deteriorated, changed, obsolete and slow-moving inventories.
3.7 Investments Investments 3.7
Investments in associate, joint venture and subsidiaries Investments in subsidiaries in the separate financial statements of the Company are accounted for using the cost method less impairment losses. Investment in associate and joint venture in the consolidated financial statements are accounted for using the equity method.
Annual Report 2016
134
FINANCIAL REPORT
The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future expectations of customer payments. Bad debts are written off when incurred.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Investments in in fixed fixed deposit deposit at Investments atbanks banksother otherdebt debtandandequity equitysecurities securities
Fixed deposit at bank is presented as part of current investment with maturities over three months, not exceeding one year.
Debt securities and marketable equity securities held for trading are classified as current assets and are stated at fair value, with any resultant gain or loss recognized in the statement of profit or loss. Debt securities that the Group and the Company have the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-tomaturity investments are stated at amortized cost less any impairment losses. The difference between the acquisition cost and redemption value of such debt securities is amortized using the effective interest rate method over the period to maturity.
FINANCAIL REPORT
Debt securities and marketable equity securities, other than those securities held for trading or intended to be held to maturity, are classified as available-for-sale investments. Available-for-sale investments are, subsequent to initial recognition, stated at fair value, and changes therein, other than impairment losses and foreign currency differences on available-for-sale monetary items, are recognized directly in equity. Impairment losses and foreign exchange differences are recognized in the statement of profit or loss and other comprehensive income. When these investments are derecognized, the cumulative gain or loss previously recognized directly in equity is recognized in the statement of profit or loss and other comprehensive income. In case of these investments are interest-bearing, interest calculated using the effective interest method is recognized in the statement of profit or loss and other comprehensive income. Equity securities which are not marketable are stated at cost less any impairment losses. The fair value of financial instruments classified as held-for-trading and availablefor-sale is determined as the quoted bid price at the end of the reporting period.
Disposalof ofinvestments investments Disposal
On disposal of an investment, the difference between net disposal proceeds and the carrying amount together with the associated cumulative gain or loss that was reported in equity is recognized in the statement of profit or loss and other comprehensive income. If the Group and the Company dispose of part of its holding of a particular investment, the deemed cost of the part sold is determined using the FIFO method applied to the carrying value of the total holding of the investment.
135
Advanced Info Service Public Company Limited
- 15 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
3.8 Property, 3.8 Property,plant plantand andequipment equipment Recognition Recognitionand andmeasurement measurement Owned Owned assets assets
Property is stated at cost less allowance for impairment. Plant and equipment are stated at cost less accumulated depreciation and allowance for impairment loss. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net in the statement of profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.
Leased assets Leased assets
Leases in terms of which the Group and the Company substantially assume all the risk and rewards of ownership are classified as finance leases. Property, plant and equipment acquired by way of finance leases is capitalised at the lower of its fair value and the present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and allowance for impairment losses. Lease payments are apportioned between the finance cost and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance cost are recognized in the statement of profit or loss.
Annual Report 2016
- 16 -
136
FINANCIAL REPORT
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Subsequent costs Subsequent costs The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in the statement of profit or loss as incurred.
Depreciation Depreciation Depreciation is calculated based on the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. The estimated useful lives are as follows:
FINANCAIL REPORT
Buildings and building improvements Leasehold building improvements Computer, tools and equipment Furniture, fixtures and office equipment Communication equipment for rental Vehicles
5, 20 5, 10 2 - 20 2-5 3 5
years years years years years years
No depreciation is provided on freehold land or assets under construction and installation. Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
3.9 3.9
Assets Assetsunder underthe theAgreements Agreementsfor foroperations operations Assets under the Agreements for operations represent the cost of certain equipment and other assets which have been or have to be transferred to the grantor of the Agreements of operations and are stated at cost less accumulated depreciation, amortization and impairment losses.
Depreciation Depreciation and andamortization amortization
Depreciation and amortization are based on the cost of the asset, or other amount substituted for cost, less its residual value. Depreciation and amortization are recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives from the date that assets are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.
137
Advanced Info Service Public Company Limited
- 17 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
The estimated useful lives are as follows: Mobile phone network digital system
10
Datanet tools and equipment
10
Computer system under the Agreement for operation of 1800-MHz operation
5
years not exceeding the remaining period of the Agreement for operations years not exceeding the remaining period of the Agreement for operations years not exceeding the remaining period of the Agreement for operations
No amortization is provided on assets under construction of the assets under the Agreements for operations. Amortization methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
3.10 Intangible Intangible assets 3.10 assets
Goodwill Goodwill
Spectrum licenses Spectrum licenses
Other intangible assets Other intangible assets
Subsequent expenditure Subsequent expenditure
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. The measurement of goodwill at initial recognition is described in note 3.1 Subsequent to initial recognition, goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity-accounted investee.
Spectrum licenses represent with its value measured at the cash equivalent price based on the present value of the installments. The difference between the total payment to be made and the cash equivalent price is recognized as finance cost over the license fee payment period, with the cost being amortized starting on date of the license effective.
Other intangible assets that are acquired by the Group and the Company, which have finite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses.
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in the statement of profit or loss.
Annual Report 2016
138
FINANCIAL REPORT
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Amortization Amortization Amortization is based on the cost of the asset, or other amount substituted for cost, less its residual value. Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives are as follows: Spectrum license Other intangible assets
Over the period of the license 5 and 10 years
FINANCAIL REPORT
No amortization is provided on advance payment. Amortization methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. 3.11 Other Other assets 3.11 assets Deferred charges Deferred charges
Deferred charges represent costs of long-term leases of space for base stations, expenditures relating to the increase of power of electricity at base stations and expenditures relating to the improvement project of mobile phone service network and are stated at cost less accumulated amortization and impairment losses.
Amortization Amortization
Amortization is based on the cost of the asset, or other amount substituted for cost, less its residual value. Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current and comparative periods are as follows:
139
Costs of long-term leases for base stations
Over the lease agreement period
Expenditures relating to the increase of power of electricity at base stations
Over the remaining period of the Agreement of operation period
Operation right of the Datanet service
10 years not exceeding the remaining period of the Agreement for operations
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
3.12 Impairment Impairment 3.12
The carrying amounts of the Group’s and the Company’s assets are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated. For goodwill and intangible assets that have indefinite useful lives or are not yet available for use, the recoverable amount is estimated each year at the same time. An impairment loss is recognized if the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount. The impairment loss is recognized in the statement of profit or loss.
Calculation of Calculation of recoverable recoverableamount amount The recoverable amount of available-for-sale financial assets is calculated by reference to the fair value. The recoverable amount of a non-financial asset is the greater of the assets’ value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Reversals of Reversals ofimpairment impairment An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognized in the statement of profit or loss. For financial assets carried at amortized cost and available-for-sale financial assets that are debt securities, the reversal is recognized in the statement of profit or loss and other comprehensive income. For available-for-sale financial assets that are equity securities, the reversal is recognized in the statement of profit or loss and other comprehensive income.
Annual Report 2016
- 20 -
140
FINANCIAL REPORT
When a decline in the fair value of an available-for-sale financial asset has been recognized directly in equity and there is objective evidence that the value of the asset is impaired, the cumulative loss that had been recognized directly in equity is recognized in the statement of profit or loss and other comprehensive income even though the financial asset has not been derecognized. The amount of the cumulative loss that is recognized in the statement of profit or loss and other comprehensive income is the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized in the statement of profit or loss.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
An impairment loss in respect of goodwill is not reversed. Impairment losses recognized in prior periods in respect of other non-financial assets are assessed at the end of the reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
3.13 Interest-bearing Interest-bearing liabilities 3.13 liabilities
Interest-bearing liabilities are recognized initially at fair value less attributable transaction charges. Subsequent to initial recognition, interest-bearing liabilities are stated at amortized cost with any difference between cost and redemption value being recognized in the statement of profit or loss over the period of the borrowings on an effective interest basis.
FINANCAIL REPORT
3.14 Trade Trade and and other 3.14 otherpayables payables
Trade and other payables are stated at cost.
3.15 Employee Employee benefits 3.15 benefits Provident fund Provident fund
The Group and the Company had provident funds which is a defined contribution plan. The fund’s asset of the provident fund is separated from the Group’s and the Company’s asset and has been managed by a licensed fund manager. The provident fund receives a cash contribution from employee and the related Group and the Company. The contribution expenditure of the provident fund is recognized as expense in the statement of profit or loss as accrued.
Employee benefit award Employee benefitobligations obligationsand andlong-term long-termservice service award
The obligation in respect of post-employment benefits that provide compensation according to labour law and long-term service award are recognized in the financial statements based on calculations by a qualified actuary using the projected unit credit method. The Group and the Company recognized all actuarial gain and loss arising from employee benefit obligations in other comprehensive income and all expenses related to employee benefit obligations in the statement of profit or loss.
141
Advanced Info Service Public Company Limited
- 21 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Termination benefits benefits Termination benefits are recognized as an expense when the Group and the Company are committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense in the statement of profit or loss if the Group and the Company have made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the end of the reporting period, then they are discounted to their present value.
Short-term employee Short-term employeebenefits benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are recognized as an expense in the statement of profit or loss as the related service is provided.
Share-based payments Share-based payments The Group measured the expense of the Project by reference to the fair value of the equity instrument granted at the grant date. The expense of the Project is recognized in the statement of profit or loss from operation corresponding to the increase in “share-based payment transaction” in shareholders’ equity over the periods in which the service conditions are fulfilled.
3.16 Provisions Provisions 3.16
A provision is recognized if, as a result of a past event, the Group and Company have a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Annual Report 2016
- 22 -
142
FINANCIAL REPORT
A liability is recognized for the amount expected to be paid under short-term cash bonus or profit sharing plans if the Group and the Company have a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
3.17 Recognition Recognition of 3.17 ofrevenue revenueand andexpense expense
Revenue excludes value added tax and is arrived at after deduction of trade discounts and volume rebates.
Sale of goods goodsand andservices servicesrendered rendered Revenue from sale of goods is recognized in the statement of profit or loss when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognized if there is continuing management involvement with the goods or there are significant uncertainties regarding recovery of the consideration due, associated costs or the probable return of goods. Service income is recognized in the statement of profit or loss as services are provided.
FINANCAIL REPORT
Revenue from mobile phone and call center services are recognized in the statement of profit or loss when services are rendered to customers. Revenue from rendering voice/data communications via telephone line network services is recognized in the statement of profit or loss when service is rendered.
Rental income Rental income
Service concession arrangements Service concession arrangements
Dividend income Dividend income
143
Rental income from rental equipment is recognized in the statement of profit or loss and on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income.
Revenue relating to construction or upgrade services under a service concession arrangement is recognized based on the stage of completion of the work performed. Operation or service revenue is recognized in the period in which the services are provided by the Group and the Company. When the Group and the Company provide more than one service in a service concession arrangement, the consideration received is allocated by reference to the relative fair values of the services delivered.
Dividend income is recognized in the statement of profit or loss on the date the Group’s and the Company’s right to receive payments is established.
Advanced Info Service Public Company Limited
- 23 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Interest income Interest income
Expense Expense
Interest income is recognized in the statement of profit or loss and as it accrues.
Expense is recognized in the statement of profit or loss and as it accrues.
3.18 Finance Finance costs 3.18 costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and contingent consideration, losses on disposal of available-for-sale financial assets, fair value losses on financial assets at fair value through the statement of profit or loss, impairment losses recognized on financial assets (other than trade receivables), and losses on hedging instruments that are recognized in the statement of profit or loss and other comprehensive income.
3.19 Lease 3.19 Lease Operating lease lease Operating
Leases not transferring a significant portion of the risks and rewards of ownership to the lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of profit or loss on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place.
Finance lease Finance lease
Lease in which substantially all the risks and rewards of ownership other than legal title are transferred to the Group and the Company is accounted for as a finance lease. The Group and the Company capitalize the equipment at the lower of fair value of the equipment at the contractual date or estimated present value of the underlying lease payments. The leased assets are depreciated using the straight-line method over their estimated useful lives. Interest or financial charge is recognized by effective interest rate method over the term of contracts. Interest or financial charge and depreciation are recognized as expenses in the statement of profit or loss.
Annual Report 2016
- 24 -
144
FINANCIAL REPORT
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in the statement of profit or loss using the effective interest method.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
3.20 Income tax 3.20 tax
Income tax expense for the year comprises current and deferred tax. Current and deferred tax are recognized in the statement of profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted and any adjustment to tax payable in respect of previous years.
FINANCAIL REPORT
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group and the Company expect, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they adjust, using tax rates enacted or substantively enacted at the end of the reporting period. In determining the amount of current and deferred tax, the Group and the Company take into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group and the Company believe that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group and the Company to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
145
Advanced Info Service Public Company Limited
- 25 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Deferred tax assets are reviewed at the end of the reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be realized.
3.21 Earnings Earnings per 3.21 pershare share
3.22 Segment reporting 3.22 Segment reporting
3.23 Useof of management’s management’s judgement 3.23 Use judgement
The Group and the Company present basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group and the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees.
The preparation of financial statements in conformity with Thai Financial Reporting Standards (“TFRSs”) also requires the Group’s and the Company’s management to exercise judgments in order to determine the accounting policies, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the end of the reporting period and the reported amounts of revenue and expense during the year. Although these estimates are based on management’s reasonable consideration of current events, actual results may differ from these estimates. Significant judgements in applying accounting policies are as follows: The recognition cost of assets and depreciation method Recognition of cost of assets incurred as part of the carrying amount of property, plant and equipment and intangible assets ended when the management has determined that the assets is in a working condition for their intended use of the management. Moreover, the accounting policies regarding to depreciation methods and estimated useful life of the asset requires management’s judgments to review each financial year.
Annual Report 2016
- 26 -
146
FINANCIAL REPORT
Segment results that are reported to the Group’s CEO (Chief Executive Officer) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Impairment Impairment The Group shall assess the assets balance at the statement of financial position whether there is any indication that an asset may be impaired. If any such indication exists, the Group shall estimate the recoverable amount of the asset and shall also test an intangible asset. Recognition of deferred tax assets associated with tax losses carryforward A deferred tax asset is recognized to the extent that it is probable that it will be utilized in the future and the Company has assessed it to be probable that the Company will generate taxable income sufficient to fully utilize the tax losses that exist. Significant commercial disputes and litigations
FINANCAIL REPORT
Item required to use management judgement in provision estimation from significant disputes and litigations because the outcome of litigations has not been finalized. 3.24 Fair Fair value value measurements measurements 3.24
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group and the Company take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis. In addition, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirely, which are described as follows: - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. - Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. - Level 3 inputs are unobservable inputs for the asset or liability.
147
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 CASH AND AND CASH CASH EQUIVALENTS EQUIVALENTS 4. CASH 4.
Cash and cash equivalents as at December 31, are as follows:
Notes
Notes
Cash on hand Cash at bank - current accounts Cash at bank - saving accounts Less Specifically-designated bank deposits Total
34 34
5
Consolidated Consolidated financial financialstatements statements 2016 2015
2016
2015
56 607 13,526 14,189
6 811 13,495 14,312
(2,963) 11,226
(4,447) 9,865
Unit : Million Baht Unit: Million Baht Separate Separate financial statements financial statements 2016 2015
2016
-
2015
2 8 400 410
2 81 1070 1,153
410
1,153
Consolidated Consolidated financial financialstatements statements 2016 2015
2016
Thai Baht (THB) US Dollar (USD) Euro (EUR) Total
10,638 477 111 11,226
2015
9,709 153 3 9,865
Unit: Million Baht Unit : Million Baht Separate Separate financial statements financial statements 2016 2015
2016
2015
251 157 2 410
1,051 100 2 1,153
As at December 31, 2016, the effective interest rate on cash and cash equivalents are 0.04% - 1.66% per annum (2015: 0.04% - 1.50% per annum). SPECIFICALLY-DESIGNATED BANK 5. SPECIFICALLY-DESIGNATED 5. BANK DEPOSITS DEPOSITS
In order to comply with the Notification of the Bank of Thailand applicable to the electronic cash card business, the subsidiaries’ held deposits at call with banks equal to the subsidiaries’ outstanding balance of advance received from customers which cannot be used for other purposes apart from payments to service providers as at December 31, 2016 amounting to Baht 2,963 million (December 31, 2015: Baht 4,447 million).
- 28 -
Annual Report 2016
148
FINANCIAL REPORT
The currencies denomination of cash and cash equivalents as at December 31, are as follows:
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
6. 6. OTHER OTHERINVESTMENTS INVESTMENTS Other investments as at December 31, are as follows:
Consolidated Consolidated financial statements financial statements
Current investments Available-for-sale investments Other long-term investments Fixed deposit at financial institutions pledged Other long-term investments
FINANCAIL REPORT
Total
2016 2016 -
11 48 59 59
2015 2015
Unit : Million Unit: Million BahtBaht Separate Separate financialstatements statements financial 2016 2015 2016 2015
305 305
-
-
11 47 58 363
-
-
48 48 48
47 47 47
Available-for-sale Available-for-sale investments investments As at December 31, 2015, the Group has investments held through private funds, managed by independent fund manager and bear interest rate at 0.37% - 3.70 % per annum (December 31, 2016: nil). Movements of available-for-sale investments for the years ended December 31, are as follows:
Current investments Available-for-sale investments As at January 1, Increase during the years Decrease during the years As at December 31,
149
Fixed institutions--pledged pledged Fixed deposits deposits atat financial financial institutions
Unit : Million Unit: Million BahtBaht Consolidated Consolidated financialstatements statements financial 2016 2015 2016 2015 305 3 (308) -
1,542 1,155 (2,392) 305
As at December 31, 2016, the Group has fixed deposit at financial institutions in the amount of Baht 11.20 million (December 31, 2015: Baht 11.20 million), which have been pledged with a bank in respect of the contract’s compliance.
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Other long-term long-term investments investments Other
On April 24, 2015, at the Annual General Meeting of the Clearing House for Number Portability Co., Ltd., the shareholders approved the appropriation of dividend of Baht 10,000 per share to shareholders on July 31, 2015, amounting to Baht 40 million and Baht 20 million for the Group and the Company, respectively. On September 29, 2016, the Company invested in Pracharath Rak Samakee Thailand Co., Ltd., of 1,000 ordinary shares with a par value of Baht 1,000 per share, totalling Baht 1 million. Total shares invested represented 1.00% ownership. The objective of business is to develop Thailand economic with the government. TRADE AND AND OTHER 7.7. TRADE OTHER RECEIVABLES RECEIVABLES
Trade and other receivables as at December 31, are as follows:
Note
Trade receivables Related parties: Trade receivables Accrued income
2016
34
Other parties: Trade receivables Accrued income Total trade receivables Less allowance for doubtful accounts Trade receivables - net Other receivables Prepaid expense Account receivables - cash card/ refill on mobile Withholding tax receivable Value added tax receivable Others Total other receivables Total trade and other receivables
56 12 68
- 30 -
2016
5 6 11
6,773 5,903 12,676 12,744 (1,367) 11,377
5,973 6,074 12,047 12,058 (1,028) 11,030
2,153
1,593
276
223 87 2,739 14,116
705 1,159 1,694 207 5,358 16,388
1,538
1,315
-
(Reversal of) bad and doubtful debts expense for the year ended December 31
2015
2015
53 3 56 211 1,580 1,791 1,847 (122) 1,725
711 910 1,621 842 1,639 2,481 4,102 (194) 3,908
19
52
125 144 1,869
1,008 514 1,574 5,482
-
(2)
-
Annual Report 2016
150
FINANCIAL REPORT
Note
: MillionBaht Baht Unit:Unit Million Separate Separate financial statements financial statements 2016 2015
Consolidated Consolidated financial financial statements 2016 2015
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR 31, 2016 2016 FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31,
Aging Aging analyzation analyzation for for trade trade receivables receivables are are as as follows: follows:
Related Related parties parties Current -- within within 33 months months Current Overdue 3 6 months Overdue 3 - 6 months Overdue 66 -- 12 12 months months Overdue Overdue over 12 months Overdue over 12 months Other parties parties Other Current within 33 months months Current -- within Overdue 3 6 months Overdue 3 - 6 months Overdue 66 -- 12 12 months months Overdue Overdue over 12 months Overdue over 12 months Less Allowance Allowance for for doubtful doubtful accounts accounts Less
FINANCAIL REPORT
Trade receivables receivables -- net net Trade
Unit: Million Baht : Million Baht Unit: Unit Million Baht Separate Separate Separate financial statements financial statements financial statements 2016 2015 2016 2015 2016 2015
Consolidated Consolidated Consolidated financial financial statements financial statements statements 2016 2015 2016 2015 2016 2015
---
67 67 11 68 68
10,125 10,125 475 475 300 300 1,776 1,776 12,676 12,676 (1,367) (1,367) 11,309 11,309 11,377 11,377
----
11 11
11 11
9,610 9,610 393 393 131 131 1,913 1,913 12,047 12,047 (1,028) (1,028) 11,019 11,019 11,030 11,030
----
56 56
56 56
22 13 13 54 54 1,722 1,722 1,791 1,791 (122) (122) 1,669 1,669 1,725 1,725
----
1,621 1,621
1,621 1,621 461 461 56 56 88 88 1,876 1,876 2,481 2,481 (194) (194) 2,287 2,287 3,908 3,908
The The normal normal credit credit term term granted granted by by the the Group Group and and the the Company Company ranges ranges from from 14 14 days days to to 30 30 days. days. The The currencies currencies denomination denomination of of trade trade receivables receivables as as at at December December 31, 31, are are as as follows: follows: Consolidated Consolidated Consolidated Consolidated financial statements financial statements financial statements financial statements 2016 2015 Notes 2016 2015
2016
Thai Baht Baht (THB) (THB) Thai United States Dollars (USD) (USD) United States Dollars Euro (EUR) Euro (EUR) Total Total
10,745 10,745 630 630 22 11,377 11,377
2015
10,970 10,970 59 59 11 11,030 11,030
Unit: Million Baht Unit: Unit Million Baht : Million Baht Separate Separate Separate Separate financial statements financial statements financial statements financial statements 2016 2015 2016 2015
2016
1,712 1,712 13 13 -1,725 1,725
2015
3,899 3,899 88 11 3,908 3,908
As As at at December December 31, 31, 2016, 2016, the the Group Group and and the the Company Company have have the the outstanding outstanding balance balance of of accrued income of revenue sharing in international direct dial service (“IDD”) of Baht accrued income of revenue sharing in international direct dial service (“IDD”) of Baht 1,584 1,584 million respectively (December (December 31, and Baht Baht million and and Baht Baht 1,574 1,574 million, million, respectively 31, 2015: 2015: Baht Baht 1,584 1,584 million million and 1,574 million, respectively). Part of that outstanding is presented in overdue 12 months of Baht 1,574 million, respectively). Part of that outstanding is presented in overdue 12 months of Baht 1,584 (December 31, 31, 2015: 2015: Baht Baht 1,573 1,573 1,584 million million and and Baht Baht 1,574 1,574 million, million, respectively respectively (December million and Baht 1,564 million, respectively). million and Baht 1,564 million, respectively). to On On January January 16, 16, 2013, 2013, the the Company Company has has submitted submitted aa dispute dispute to demanding this demanding TOT TOT Public Public Company Company Limited Limited (“TOT”) (“TOT”) to to pay pay this the total amount of Baht 1,527 million. the total amount of Baht 1,527 million.
the Arbitration Arbitration the receivable plus plus receivable
Institute Institute interest, interest,
subsidiary, has has submitted submitted aa On Company Limited, Limited, aa subsidiary, On November November 26, 26, 2013, 2013, Digital Digital Phone Phone Company dispute to the Central Administrative Court demanding CAT Public Company Limited dispute to the Central Administrative Court demanding CAT Public Company Limited (“CAT”) to to pay pay this this receivable receivable plus amount of of Baht Baht 11 11 million. million. (“CAT”) plus interest, interest, the the total total amount 151
Advanced Info Service Public Company Limited
- 31 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 INVENTORIES 8. 8. INVENTORIES
Inventories as at December 31, are as follows: Unit:Unit Million : MillionBaht Baht Separate Separate Separate financial statements financial statements financial statements 2016 2015 2016 2015
Consolidated Consolidated Consolidated financial statements financial financial statementsstatements Notes 2016 2015 2015 2016 Finished goods Supplies and spare parts Spare parts for mobile phone network maintenance Less allowance for obsolescence and decline in value of inventory Inventories - net
3,529 46
4,831 602
-
2 15
677 4,252
478 5,911
383 383
440 457
(1,167) 3,085
(852) 5,059
(382) 1
(418) 39
9.9.
INVESTMENTS IN AN ASSOCIATE AND A JOINT VENTURE
INVESTMENTS IN AN ASSOCIATE AND A JOINT VENTURE
Movements in investment in an associate for the years ended December 31, are as follows: Unit: Million Baht Unit : Million Baht Consolidated Consolidated financial financial statements statements 2016 2015 2015 2016 As at January 1, Additional investments Share gain (loss) from investment in an associate As at December 31,
-
24 24
-
11 (11)
On July 15, 2015, ABN made an additional payment for 75% paid-up in share capital of IH of Baht 10.88 million. The purpose of additional paid-up in share capital is for future investment and ABN remains 29% of ownership.
Annual Report 2016
152
FINANCIAL REPORT
The Group and the Company recognized expenses in respect of (reversal of) allowance for obsolescence and decline in value of inventory for the year ended December 31, 2016 of Baht 315 million and Baht (36) million, respectively (2015: Baht 207 million and Baht (20) million, respectively).
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR 31, 2016 2016 FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31,
Movements Movements inin investment investment inin aa joint joint venture venture for for the the year year ended ended December December 31, 31, 2016 2016 isis as as follows: (2015: nil) follows: (2015: nil)
As AsatatJanuary January1,1, Additional Additionalinvestments investments Share Sharegain gain(loss) (loss)from frominvestment investmentininjoint jointventure venture As at December 31, As at December 31,
Unit : Million Baht Unit: Baht Unit:Million Million Baht Consolidated Consolidated Consolidated financial statements financial financialstatements statements -15 15 -15 15
The Theestablishment establishmentof ofaajoint jointventure venture
FINANCAIL REPORT
On OnOctober October20, 20,2015, 2015,atatthe theBoard Boardof ofDirectors’ Directors’meeting, meeting,the theBoard Boardpassed passedthe theresolution resolution toto approve approve the the establishment establishment of of aa joint joint venture venture company company between between Advanced Advanced Broadband Broadband Network Network Co., Co., Ltd. Ltd. (“ABN”), (“ABN”), aa subsidiary, subsidiary, and and Amata Amata Corporation Corporation Public Public Company Company Limited (“AMATA”) for 60% holding or 599,998 shares, totalling Baht Limited (“AMATA”) for 60% holding or 599,998 shares, totalling Baht 60 60 million million toto develop develop infrastructure infrastructure of of fibre fibre optic optic network network inin Amata Amata Nakorn Nakorn industrial industrial estate estate named named Amata Network Co., Ltd. (“AN”). ABN registered the increase in the share Amata Network Co., Ltd. (“AN”). ABN registered the increase in the share capital capital on on November 30, 2016 (see Note 10). November 30, 2016 (see Note 10). On On December December 6,6, 2016, 2016, ABN ABN invested invested inin Amata Amata Network Network Co., Co., Ltd. Ltd. (“AN”), (“AN”), 599,998 599,998 shares shares by by Baht Baht 25 25 per per share, share, totalling totalling Baht Baht 15 15 million, million, representing representing 60% 60% of of ownership. ownership. AN ANhas hasnot notstarted startedthe thebusiness businessoperation operationinin2016. 2016.
153
Advanced Info Service Public Company Limited
- 33 -
154
29 -
60 -60 of an 60 associate -and
29 60
50 -
25 -25 a joint 25 venture and -
50 25 -
15
15 2015 15 15
2015 2015
2015
15 -15 performance 15 for the -
15 15
% of Ownership interest Paid-up capital Cost Consolidated financial Consolidated financial statements statementsCost % of Ownership interest Paid-up capital 2016 2015 2016 2015 2016 % Paid-up Consolidated financial statements Cost % of of Ownership Ownership interest interest Paid-up capital capital Cost 2016 2015 2016 2015 2016 2015 2015 2016 2016 2016 2015 2016 2015 2016 % of Ownership interest Paid-up capital Cost 29 29 50 50 15 2016 2015 2016 2015 2016 29 29 50 50 15 29 29 50 50 15
Equity
15 15 ended 15
24 15
-
-are-as
Equity 2015 2016 Equity Equity 2016 2015 2016 2015 Equity 2015 24 2016 2015 -24 24
Consolidated financial statements
Consolidated financial statements
Unit:Unit Million : MillionBaht Baht
-follows:-
-
Information Highway Co., Ltd.
2016 Associate 2016 2016 Information Highway Co., Ltd. Associate Associate 2016 Information Information Highway Highway Co., Co., Ltd. Ltd. Associate Joint venture Information Highway Co., Ltd. Amata Network Co., Ltd. Joint Joint venture venture Amata Network Amata Network Co., Co., Ltd. Ltd. Joint 2015 venture Amata Network Co., Ltd. Associate 2015 2015 Information Highway Co., Ltd. Associate Associate 2015 Information Highway Co., Ltd. Information Associate Highway Co., Ltd. 29
29 29
December December 31 31
December 31
29
60
December 31
December 31
60 60
December December 31 31
29 29
December December 31 31 29 60
interest
December December 31 31
interest 29
Ownership % % of of interest % of Ownership Ownership % of Ownership interest interest Ownership
date December 31
Reporting date Reporting Reporting date date Reporting
132
132 132
132
25
25 25
197 25
197 197
197
assets assets
Current assets Current Current assets assets Current Current
-
--
500
500 500
500
-584
584 584
assets 584
assets
- 34 -
632
632 632
632
25
25 25
781 25
781 781
assets assets 781
Total assets Total Total assets assets Total Total
- 34 -- 34 34 --
current NonNonassets current current NonNon-current assets assets current
247
247 247
247
1
11
5551
555 555
liabilities liabilities 555
Current liabilities Current Current liabilities liabilities Current Current
-
--
370
370 370
370
- 142
142 142
liabilities 142
liabilities
current NonNonliabilities current current NonNon-current liabilities liabilities current
617
617 617
617
1
11
6971
697 697
697
liabilities liabilities
Total liabilities Total Total liabilities liabilities Total Total
-
--
159
159 159
159
-275
275 275
revenues revenues 275
Total revenues Total Total revenues revenues Total Total
175
175 175
175
1
11
2071
207 207
expenses expenses 207
(16)
(16) (16)
(16)
(1)
(1) (1)
68 (1)
68 68
68
(loss) (loss)
Total Profit/ Unit:Unit Million Baht : Million Baht expenses (loss) Total Profit/ Unit: Million Baht Total Profit/ expenses (loss) Profit/ expenses (loss) Total Total Profit/
Summarized financial position in respect % ofofan associate and a joint the year then ended are as follows:Unit: Million Baht Non- venture and performance forNon-
Unit: Million Baht
--
-
Unit: Unit: Million Million Baht Baht Dividend income Unit: Million Baht Dividend income 2016 2015 Dividend Dividend income income 2016 2015 2015 2016 2015 Dividend income 2016 2015 ---
in respect year then Summarized Summarized financial financial position position in in respect respect of of an an associate associate and and aa joint joint venture venture and and performance performance for for the the year year then then ended ended are are as as follows: follows:
Associate Information Highway Co., Ltd. Associate Associate Information Associate Information Highway Highway Co., Co., Ltd. Ltd. Joint venture Information Highway Co., Ltd. Amata Network Co., Ltd. Joint Joint venture venture Amata Network Joint Amataventure Network Co., Co., Ltd. Ltd. Summarized financial Amata Network Co., Ltd.position
follows:
from those investments for the years then ended are as follows: Investments Investments in in an an associate associate and and aa joint joint venture venture as as at at December December 31, 31, and and dividend dividend income income from from those those investments investments for for the the years years then then ended ended are are as as follows: follows: Investments in an associate and a joint venture as at December 31, and dividend income from those investments for the years then ended are as
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES 31, 2016 FOR THE YEAR ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES 31, FOR THE ENDED 31, 2016 2016 FOR THE YEAR ENDED DECEMBER DECEMBER NOTES TOYEAR THE FINANCIAL STATEMENTS Investments in anENDED associate and a joint31, venture 2016as at December 31, and dividend income FOR THE YEAR DECEMBER
FINANCIAL REPORT
Annual Report 2016
ADVANCED ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS ITS SUBSIDIARIES ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS SUBSIDIARIES SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31, 2016 FOR FOR THE YEAR ENDED DECEMBER FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31, 2016 INVESTMENTS IN SUBSIDIARIES 10. INVESTMENTS IN SUBSIDIARIES SUBSIDIARIES INVESTMENTS INVESTMENTS IN IN SUBSIDIARIES
Movements Movements in in investments investments in in subsidiaries subsidiaries for for the the years years ended ended December December 31, 31, are are as as follows: follows:
Unit : Million Unit: Baht Unit: Million Million BahtBaht Separate Separate Separate financial statements financial financial statements statements 2016 2015 2016 2015 2016 2015
FINANCAIL REPORT
As As at at January January 1, 1, Increase in share Increase in share capital capital of of aa subsidiary subsidiary Decrease in share capital of subsidiary Decrease in share capital of subsidiary Impairment Impairment loss loss on on investment investment in in subsidiary subsidiary Liquidation of a subsidiary Liquidation of a subsidiary As As at at December December 31, 31,
7,661 7,661 60 60 ---7,721 7,721
7,912 7,912 14 14 (75) (75) (179) (179) (11) (11) 7,661 7,661
Increase share capital subsidiary capital ofof aa subsidiary Increase in in share capital subsidiary
Ltd. (“ABN”), (“ABN”), aa subsidiary, subsidiary, On January January 19, 19, 2015, 2015, Advanced Advanced Broadband Broadband Network Network Co., Co., Ltd. On registered registered the the increase increase in in the the share share capital capital from from Baht Baht 11 million million (10,000 (10,000 ordinary ordinary shares, shares, Baht 100 par value) to Baht 15 million (150,000 ordinary shares, Baht 100 par value) value) with with Baht 100 par value) to Baht 15 million (150,000 ordinary shares, Baht 100 par the the Ministry Ministry of of Commerce. Commerce. The The purpose purpose of of the the capital capital increase increase is is for for future future investment. investment. The Company paid for the increased shares by Baht 100 per share, The Company paid for the increased shares by Baht 100 per share, totalling totalling Baht Baht 14 14 share capital. million and holds 99.99% of the issued million and holds 99.99% of the issued share capital. On On November November 30, 30, 2016, 2016, ABN, ABN, aa subsidiary, subsidiary, registered registered the the increase increase in in the the share share capital capital from Baht 15 million (150,000 ordinary shares, Baht 100 par value) to Baht 75 million from Baht 15 million (150,000 ordinary shares, Baht 100 par value) to Baht 75 million (750,000 (750,000 ordinary ordinary shares, shares, Baht Baht 100 100 par par value) value) with with the the Ministry Ministry of of Commerce. Commerce. The The increase is for investment in purpose of the capital joint venture. The Company paid for for purpose of the capital increase is for investment in joint venture. The Company paid the the increased increased shares shares by by Baht Baht 100 100 per per share, share, totalling totalling Baht Baht 60 60 million million and and holds holds 99.99% 99.99% of of the issued share capital. the issued share capital.
Decrease of aa subsidiary subsidiary Decrease in share capital capital Decrease in in share capital of
Loss on investment in in subsidiary subsidiary on impairment impairment subsidiary Loss impairment ofof investment
155
On On January January 12, 12, 2015, 2015, the the Company Company received received return return share share capital capital of of Advanced Advanced Internet Internet Revolution Co., Ltd. (“AIR”), a subsidiary, in amount of Baht 75 million. Revolution Co., Ltd. (“AIR”), a subsidiary, in amount of Baht 75 million. The The Company Company recorded recorded impairment impairment loss loss on on investment investment in in Advanced Advanced Internet Internet Revolution Revolution Co., Ltd. (“AIR”), a subsidiary, for year ended December 31, 2015 of Baht 179 Co., Ltd. (“AIR”), a subsidiary, for year ended December 31, 2015 of Baht 179 million million from from the the review review of of the the carrying carrying amount amount of of AIR. AIR. On On October October 19, 19, 2015, 2015, AIR AIR completed completed the the liquidation. process of process of liquidation.
Advanced Info Service Public Company Limited
156
99.99 99.99 99.99 99.99
Total
Advanced Broadband Network Co., Ltd.
Fax Lite Co., Ltd. Total MIMO Tech Co., Ltd. 99.99
99.99
99.98
99.99 99.99 99.99 99.98
Super Co., Ltd. MIMOBroadband Tech Co.,Network Ltd. Wireless Device SupplyNetwork Co., Ltd. Advanced Broadband Co., Ltd.
AIN GlobalComm Co., Ltd. Wireless Device Supply Co., Ltd. Advanced Wireless Fax Lite Co., Ltd. Network Co., Ltd.
99.99 99.99 99.99 99.99
99.99 99.99 99.99 98.55 99.99
99.99
99.99
99.98
99.99 99.99 99.99 99.99
99.99 99.99 99.99 99.98
99.99 99.99 99.99 99.99
99.99 99.99 99.99 98.55 99.99
2016 99.99 99.99 % of ownership2015 interest 2016 2015 98.55 98.55
Digital Phone Co., Ltd. AIN GlobalComm Co., Ltd. Advanced Magic Card Co., Ltd. Advanced Wireless Network Co., Ltd. Advanced Mpay Co., Ltd. Co., Ltd. Super Broadband Network
Subsidiaries Advanced Magic Card Co., Ltd. Advanced Center AdvancedContact Mpay Co., Ltd.Co., Ltd.
Digital Phone Co., Ltd.
Subsidiaries Advanced Contact Center Co., Ltd.
Investments in subsidiaries as at
for the years then ended, are as follows:
75
50
50 75 1
1,3501 300 50
300 300 100 50
3,655 100 250 1,350
3,655 2016 250 272 300
- 36 -
- 36 -
15
50
50 15 1
1,3501 300 50
300 300 100 50
3,655 100 250 1,350
3,655 2015 250 272 300
272 capital 2016 2015272 Paid-up
Paid-up capital
15,951
75
50
50 75 1 15,951
1,4851 300 50
336 300 100 50
12,493 100 250 1,485
15,891
15
50
50 15 1 15,891
1,4851 300 50
336 300 100 50
12,493 100 250 1,485
(8,230)
-
-
-(8,230)
---
---
(8,230) --
(8,230)
-
-
-(8,230)
---
---
(8,230) --
Separate financial statements 2016811Cost 2015811 2016 2015 Impairment 12,493 12,493 (8,230) (8,230) 2016 2015 2016 2015 250 250 811 811 336 336 -
Separate financial statements Cost Impairment
7,721
75
50
50 75 1 7,721
1,4851 300 50
336 300 100 50
4,263 100 250 1,485
4,263 2016 250 811 336
7,661
15
50
50 15 1 7,661
1,4851 300 50
336 300 100 50
4,263 100 250 1,485
4,263 2015 250 811 336
811 - net 2016 2015811 Cost
Cost - net
Separate financial statements December 31 and dividend income from those investments for the years then ended, are as follows: % of ownership interest Paid-up capital Cost Impairment Cost - net 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 % of ownership interest
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL Investments in subsidiaries as STATEMENTS at December 31 and dividend income from those investments FOR THE YEAR ENDED DECEMBER 31, 2016
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
FINANCIAL REPORT
Annual Report 2016
28,009
-
1,187
835 1,465 28,009
166 835 23,492 1,465 1,187
23,492 591 -
273 591 - 166
36,725
477 -
810 933 36,725
726 810 31,793 933 1,176 477
88 31,793 538 1,176
88 184 538 -726
2016 2015184 273 income Dividend 2016 2015 -
Dividend income
Dividend income 2016Million2015 Unit: Baht
Unit: UnitMillion : Million Baht Baht
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016
11. PROPERTY, 11. PROPERTY,PLANT PLANTAND ANDEQUIPMENT EQUIPMENT 11.
PROPERTY, PLANT AND EQUIPMENT
Movements in property, plant and equipment for the years ended December 31, are as Movements in property, plant and equipment for the years ended December 31, are as follows: follows: As at December 31, 2016 As at December 31, 2016
FINANCAIL REPORT
Balance as at Balance as January Balance as1,at at January 1, 2016 1, January 2016 Cost 2016 Land 524 Cost Building and building improvements 477 Land 524 Leasehold building improvements 1,383 Building and building improvements 477 Computer, tools andimprovements equipment 99,805 Leasehold building 1,383 Furniture, and office Computer,fixtures tools and equipment 99,805 equipment 1,629 Furniture, fixtures and office Communication equipment equipment for 1,629 rental 8 Communication equipment for Vehicles 237 rental 8 Vehicles 237 Total 104,063 Total 104,063 Accumulated depreciation Building anddepreciation building improvements (420) Accumulated Leasehold building improvements (754) Building and building improvements (420) Computer, tools andimprovements equipment (30,506) Leasehold building (754) Furniture, and office Computer,fixtures tools and equipment (30,506) equipment (1,397) Furniture, fixtures and office Communication equipment equipment for (1,397) rental (4) Communication equipment for Vehicles (114) rental (4) Vehicles (114) Total (33,195) Total construction and (33,195) Assets under installation 13,778 Assets under construction and installation 13,778 Less Allowance for impairment (355) Allowance for unused Less impairment (355) equipmentfor unused Allowance equipment Property, plant and equipment 84,291 Property, plant and equipment 84,291
157
: Million Baht Unit: Unit Million Baht Consolidated financial statementsUnit: Million Baht Additions Disposals Transfer/ Balance as at Consolidated financial statements Balance asas31, at Other December Additions Disposals Transfer/ Balance at December 31, 2016 31, Other December Additions Disposals Transfer/Other 2016 2016 524 443 - (34) 524 (92) 1,595 - 287 (34) - 17 443 45,683 (1,379) 7,361 151,470 287 (92) 17 1,595 45,683 (1,379) 7,361 151,470 98 (526) 4 1,205 98 (526) 4 1,205 8 9 212 - (34) 8 9 (34) - 7,382 212 46,077 (2,065) 155,457 46,077 (2,065) 7,382 155,457
Advanced Info Service Public Company Limited
- 37 -
Consolidated financial statements
(12) (193) (12) (15,148) (193) (15,148) (77) (77) - (35) (35) (15,465) (15,465) 3,646 - 3,646 (136) (136) 34,122 34,122
34 82 34 1,358 82 1,358 523 523 - 24 24 2,021 2,021 (6) - (6) - (50) (50)
-
1 1 (1) (1)
(7,474) -(7,474) - (92) (92)
(398) (864) (398) (44,296) (864) (44,296) (952) (952) (4) (125) (4) (125) (46,639) (46,639) 9,944 9,944 (355) (355) (136) (136) 118,271 118,271
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016 As at December 31, 2015 As at December 31, 2015
2015
Consolidated financial statements
(19) (19) (148) (148) (9,887) (9,887) (61) (61) - (38) (38) (10,153) (10,153) 9,050 -9,050 23,927 23,927
7 7 62 62 15,486 15,486 89 89 - 55 55 15,699 15,699 (98) (98) 8 8 (172) (172)
9 9 - (15) (15) 12 12 6 6 (7,601) (7,601) - (167) (167) Million Baht Million Baht Million Baht
(420) (420) (754) (754) (30,506) (30,506) (1,397) (1,397) (4) (4) (114) (114) (33,195) (33,195) 13,778 13,778 (355) (355) 84,291 84,291 15,465 15,465 10,153 10,153
Annual Report 2016
158
FINANCIAL REPORT
Balance as at Balance as at Balance Januaryas1,at January 1, January 2015 1, 2015 2015 Cost Cost Land 524 Land 524 Building and building improvements 493 Building building improvements 493 Leaseholdand building improvements 1,127 Leasehold 1,127 Computer, building tools andimprovements equipment 83,380 Computer, tools and equipment 83,380 Furniture, fixtures and office Furniture, fixtures and office equipment 1,615 equipment equipment for 1,615 Communication Communication equipment for rental 8 rental 8 Vehicles 239 Vehicles 239 Total 87,386 Total 87,386 Accumulated depreciation Accumulated Building anddepreciation building improvements (417) Building building improvements (417) Leaseholdand building improvements (668) Leasehold (668) Computer, building tools andimprovements equipment (36,090) Computer, tools and equipment (36,090) Furniture, fixtures and office Furniture, fixtures and office equipment (1,437) equipment equipment for (1,437) Communication Communication equipment for rental (4) rental (4) Vehicles (131) Vehicles (131) Total (38,747) Total construction and (38,747) Assets under Assets under construction and installation 12,427 installation 12,427 Less Allowance for impairment (363) Less Allowance for impairment (363) Property, plant and equipment 60,703 Property, plant and equipment 60,703 Depreciation for the years ended December 31, Depreciation for the years ended December 31, 2016 2016 2015
UnitMillion : MillionBaht Baht Unit: Consolidated financial statements Unit: Million Baht ConsolidatedDisposals financial statements Additions Transfer/ Balance as at Balance as at at Additions Disposals Transfer/ Balance as31, Other December December 31, Other December 2015 31, Additions Disposals Transfer/Other 2015 2015 524 - (7) - (9) 524 477 - 342 (7) (9) 477 (85) (1) 1,383 342 (85) (1) 1,383 24,508 (15,535) 7,452 99,805 24,508 (15,535) 7,452 99,805 117 (89) (14) 1,629 117 (89) (14) 1,629 8 - 63 - (65) 8 237 63 (65) -7,428 237 25,030 (15,781) 104,063 25,030 (15,781) 7,428 104,063
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES 31, 2016 FOR THE ENDED DECEMBER NOTES TOYEAR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 As at December 31, 2016 As at December 31, 2016
Cost Building and building improvements Cost Leasehold building improvements Building and building improvements Computer, tools and equipment Leasehold building improvements Furniture, and office Computer,fixtures tools and equipment equipment Furniture, fixtures and office Vehicles equipment Total Vehicles
FINANCAIL REPORT
Total Accumulated depreciation Building anddepreciation building improvements Accumulated Leasehold building improvements Building and building improvements Computer, tools andimprovements equipment Leasehold building Furniture, and office Computer,fixtures tools and equipment equipment Furniture, fixtures and office Vehicles equipment Total Vehicles Assets under Total construction and installation Assets under construction and Property, plant and equipment installation Property, plant and equipment
As at December 31, 2015 As at December 31, 2015
159
Balance as at Balance as January Balance as1,at at January 2016 January 1, 1,
2016 2016
357 458 357 5,886 458
Separate financial statements
Additions -
-
5,886 1,178 105 1,178 7,984 105
Disposals
7 2 7
2 5 52 16 2
(35) (118) (35) (1,273) (118)
(1,273) (531) (24) (531) (1,981) (24)
7,984
16
(1,981)
(345) (380) (345) (5,623) (380)
(8) (20) (8) (63) (20)
35 91 35 1,262 91
(5,623) (1,123) (50) (1,123) (7,521) (50) (7,521) 37 500 37 500
Balance as at Januaryas1,at Balance 2015 1, January Cost 2015 Building and building improvements 372 Cost Leasehold building improvements 573 Building and building improvements 372 Computer, tools andimprovements equipment 21,898 Leasehold building 573 Furniture, and office Computer,fixtures tools and equipment 21,898 equipment 1,201 Furniture, fixtures and office Vehicles 152 equipment 1,201 Total 24,196 Vehicles 152 Total 24,196 Accumulated depreciation Building anddepreciation building improvements (346) Accumulated Leasehold building improvements (421) Building and building improvements (346) Computer, tools and equipment (21,194) Leasehold building improvements (421) Furniture, and office Computer,fixtures tools and equipment (21,194) equipment (1,140) Furniture, fixtures and office Vehicles (87) equipment (1,140) Total (23,188) Vehicles (87) Assets under construction and Total (23,188) installation 95 Assets under construction and Property, plant and equipment 1,103 installation 95 Property, plant and equipment 1,103 Depreciation for the years ended December 31, 2016 Depreciation for the years ended December 31, 2015 2016 2015
Advanced Info Service Public Company Limited
Unit:Unit Million : MillionBaht Baht Separate financial statements Unit: Million Baht Additions Disposalsstatements Transfer/ Balance as at Separate financial Balance Other December 31, Additions Disposals Transfer/ Balanceas asat at December 31, 2016 Other December 31,
(63) (20) (16) (20) (127) (16)
-
(127)
- (111) (111)
1,262 529 18 529 1,935 18
1,935 (6) (52) (6) (52)
Transfer/Other -
-
--
-
16
16
16
16
---
322 363 322 4,615 363 4,615 652 83 652 6,035 83 6,035
(318) (309) (318) (4,424) (309)
---
2016 2016
(4,424) (614) (48) (614) (5,713) (48)
(16)
- (16)
-
(5,713) 15 337 15 337
Unit: Million Baht Separate financial statements Unit: Million Baht Additions Disposalsstatements Transfer/ Balance as at Separate financial Other December Additions Disposals Transfer/ Balance as31, at 2015 31, Other December -
- 57 16 57 16 24 30 24 127 30 127
(14) (38) (14) (196) (38) (196) (21) (20) (21) (289) (20) (289)
- (162) (162)
(6) (172) (6) (16,074) (172) (16,074) (47) (77) (47) (16,376) (77) (16,376) 6 79 6 15,771 79 15,771 38 57 38 15,951 57 15,951 (13) (438) (13) (438)
-
-
--
--
(9)
(9) 46 46
37 37 9 9 (4) (4) 5 5 (45) (3) (45) (3)
Million Baht Million Baht Million Baht
2015 357 458 357 5,886 458 5,886 1,178 105 1,178 7,984 105 7,984
(345) (380) (345) (5,623) (380) (5,623) (1,123) (50) (1,123) (7,521) (50) (7,521) 37 500 37 500 127 289 127 289
Building anddepreciation building improvements Accumulated Leasehold building improvements Building and building improvements Computer, tools andimprovements equipment Leasehold building Furniture, and office Computer,fixtures tools and equipment equipment Furniture, fixtures and office Vehicles equipment Total Vehicles Assets under Total construction and installation Assets under construction and Property, plant and equipment installation Property, plant and equipment
As at December 31, 2015 As at December 31, 2015
(345) (380) (345) (5,623) (380) (5,623) (1,123) (50) (1,123) (7,521) (50) (7,521) 37 500 37 500
- (111) (111)
35 91 35 1,262 91 1,262 529 18 529 1,935 18 1,935 (6) (52) (6) (52)
-----
(16) - (16) -
(318) (309) (318) (4,424) (309) (4,424) (614) (48) (614) (5,713) (48) (5,713) 15 337 15 337
Unit:Unit Million : MillionBaht Baht Separate financial statements Unit: Million Baht Additions Disposalsstatements Transfer/ Balance as at Separate financial Balance Other December 31, Additions Disposals Transfer/ Balanceas asat at December 31, 2015 Other December 31, Additions Disposals Transfer/Other 2015 2015 (6) (9) 357 458 (172) - (9) - 57 (6) 357 16 (16,074) 5,886 458 57 (172) - 46 16 (16,074) 46 5,886 24 (47) 1,178 30 (77) 105 24 (47) -1,178 127 (16,376) 7,984 30 (77) - 37 105 127 (16,376) 37 7,984
Separate financial statements
(14) (38) (14) (196) (38) (196) (21) (20) (21) (289) (20) (289)
- (162) (162)
6 79 6 15,771 79 15,771 38 57 38 15,951 57 15,951 (13) (438) (13) (438)
--
9 9 (4) (4) 5 5 (45) (3) (45) (3)
(345) (380) (345) (5,623) (380) (5,623) (1,123) (50) (1,123) (7,521) (50) (7,521) 37 500 37 500
Million Baht Million Baht Million Baht
127 289 127 289
- 39 - 39 -
Annual Report 2016
160
FINANCIAL REPORT
Balance as at Balance as January Balance as1,at at January 2015 January 1, 1, 2015 Cost 2015 Building and building improvements 372 Cost Leaseholdand building improvements 573 Building building improvements 372 Computer, building tools andimprovements equipment 21,898 Leasehold 573 Furniture, fixtures and office Computer, tools and equipment 21,898 equipment 1,201 Furniture, fixtures and office Vehicles 152 equipment 1,201 Total 24,196 Vehicles 152 Total 24,196 Accumulated depreciation Building anddepreciation building improvements (346) Accumulated Leasehold building improvements (421) Building and building improvements (346) Computer, tools andimprovements equipment (21,194) Leasehold building (421) Furniture, fixtures and office Computer, tools and equipment (21,194) equipment (1,140) Furniture, fixtures and office Vehicles (87) equipment (1,140) Total (23,188) Vehicles (87) Assets under construction and Total (23,188) installation 95 Assets under construction and Property, plant and equipment 1,103 installation 95 Property, plant and equipment 1,103 Depreciation for the years ended December 31, 2016 Depreciation for the years ended December 31, 2015 2016 2015
(8) (20) (8) (63) (20) (63) (20) (16) (20) (127) (16) (127)
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFOENDED SERVICE PUBLIC COMPANY 31, 2016 LIMITED AND ITS SUBSIDIARIES FOR THE YEAR DECEMBER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 12. ASSETS UNDER THE AGREEMENTS FOR OPERATIONS
12. ASSETS UNDER THE AGREEMENTS FOR OPERATIONS
in assets the Agreements operations for the years ended December 31, ASSETS UNDER THEunder AGREEMENTS FOR for OPERATIONS 12. Movements are as follows: Movements in assets under the Agreements for operations for the years ended December 31, As areatasDecember follows:31, 2016 As at December 31, 2016 Cost Cost of datanet tools and Costequipment CostTotal of datanet tools and
FINANCAIL REPORT
equipment Accumulated Total depreciation and amortization Cost of datanet tools and Accumulated depreciation equipment and amortization Cost Total of datanet tools and Less equipment Allowance for impairment Assets under Total the Agreements forAllowance operationsfor impairment Less Assets under the Agreements Asfor at operations December 31, 2015
As at December 31, 2015
Balance as at January Balance as1, at 2016 1, January Balance as at 2016 1, January 2016 1,248 1,248 1,248 1,248
Unit: UnitMillion : MillionBaht Baht Consolidated financial statements Additions Disposals Transfer/ Transfer toUnit: Balance at MillionasBaht Other TOT December 31, Balance as at Consolidated financial statements 2016 31, Transfer/ Transfer Transfer to Balance December Additions Disposals Transfer/ as at Additions Disposals Other Other TOT 2016 31, TOT December 2016 1,248 1,248
Consolidated financial statements
-
-
-
-
1,248 1,248
(1,038) (1,038) (210) (1,038) (1,038) - (210)
---
---
---
---
(1,038) (1,038) (210) (1,038) (1,038) - (210)
-
-
-
-
-
Balance as at January 1, 2015as at Balance January 1, 2015 145,423
-
Unit: Million Baht Consolidated financial statements Additions Disposals Transfer/ Transfer toUnit: Balance at MillionasBaht Other December 31, Consolidated financial statementsTOT 2015as at Additions Disposals Transfer/ Transfer to Balance Other TOT December 31, 2015 676 (21,721) (31) (124,347) -
Cost Cost of mobile phone Costnetworks Cost tools and Cost of of datanet mobile phone equipment 1,248 - 676 - (31) networks 145,423 (21,721) (124,347) -1,248 146,671 676 (21,721) (31) (124,347) 1,248 CostTotal of datanet tools and equipment 1,248 1,248 Accumulated Total depreciation 146,671 676 (21,721) (31) (124,347) 1,248 and amortization Cost of mobile phone Accumulated depreciation networks (137,320) (8,606) 21,558 21 124,347 and amortization Cost of datanet tools and mobile phone equipment (1,038) - 21 (1,038) networks (137,320) (8,606) 21,558 124,347 (138,358) (8,606) 21,558 21 124,347 (1,038) Cost Total of datanet tools and Advance payment and assets equipment (1,038) (1,038) underTotal construction of mobile (138,358) (8,606) 21,558 21 124,347 (1,038) phone networks 635 (612) (23) Advance payment and assets Less Allowance for impairment (210) (210) under construction of mobile phone networks 635 (612) (23) Assets under the Agreements forAllowance operationsfor impairment 8,738 (8,542) -- (210) Less (210) -(163) - (33) Assets under the Agreements for operations (33) Million- Baht -8,606 Depreciation and amortization for the 8,738 years ended(8,542) December 31, (163) 2015 (2016 : nil) Depreciation and amortization for the years ended December 31, 2015 Million Baht 8,606 (2016 : nil) The gross amount of the Group’s fully amortized assets under the Agreements for
operations that was still in use as at December 31, 2015 amounted to Baht 1,248 million The gross amount of the Group’s fully amortized assets under the Agreements for (December 31, 2016: nil). operations that was still in use as at December 31, 2015 amounted to Baht 1,248 million (December 31, 2016: nil).
161
Advanced Info Service Public Company Limited
As at December 31, 2016 Cost Cost of datanet tools and equipment Cost CostTotal of datanet tools and
equipment Accumulated Total depreciation and amortization Cost of datanet tools and Accumulated depreciation equipment and amortization CostTotal of datanet tools and Less Allowance equipment for impairment Assets under Total the Agreements for operations Less Allowance for impairment Assets under the Agreements
operations 31, 2015 Asfor at December
As at December 31, 2015 Cost Cost of mobile phone networks Cost Cost of datanet tools and Cost of mobile phone equipment networks CostTotal of datanet tools and
1,248 1,248
-
-
-
-
1,248 1,248
(1,038) (1,038) (210) (1,038)
--
--
--
--
(1,038) (1,038) (210) (1,038)
-
-
-
-
-
(1,038) - (210)
--
--
--
--
(1,038) - (210)
Unit:Unit Million : MillionBaht Baht
Consolidated financial statements Balance as at Additions Disposals Transfer/ Transfer toUnit: Balance at MillionasBaht January 1, Other TOT December 31, Balance as at Balance as at Consolidated financial statements 2015 1, 2015 31, January Transfer/ Transfer Transfer toto Balance December Balance as at Additions Disposals Transfer/ as at January TOT December 2015 1, Additions Disposals Other Other TOT 2015 31, 2015 2015 145,423 676 (21,721) (31) (124,347) -
Consolidated financial statements
1,248 145,423 146,671 1,248 146,671
-
676 676
-
676
(21,721) (21,721) (21,721)
(137,320)
(8,606)
21,558
(1,038) (137,320) (138,358)
(8,606) (8,606)
21,558 21,558
(1,038) (138,358) 635 (210) 635 8,738 (210)
(8,606) (612) -
(612) (8,542) -
21,558 -
(163) -
-
(31) (31)
-
-
(124,347) (124,347)
1,248 1,248
(31)
(124,347)
21
124,347
-
21 21
124,347 124,347
(1,038) (1,038)
21 (23)
(23) -(33)
124,347 --
1,248 1,248
(1,038) (1,038) (210) - (210)
Assets under the Agreements Depreciation and amortization for the years December 31, 2015 8,606 for operations 8,738 ended(8,542) (163) (33) Million- Baht (2016 : nil) Depreciation and amortization for the years ended December 31, 2015 Million Baht 8,606 (2016 : nil) amount of the Group’s fully amortized assets under the Agreements for The gross
operations that was still in use as at December 31, 2015 amounted to Baht 1,248 million The gross 31, amount (December 2016: of nil).the Group’s fully amortized assets under the Agreements for operations that was still in use as at December 31, 2015 amounted to Baht 1,248 million (December 31, 2016: nil). - 40 - 40 -
Annual Report 2016
162
FINANCIAL REPORT
equipment Accumulated Total depreciation and amortization Cost of mobile phone Accumulated depreciation networks and amortization Cost of datanet tools and Cost of mobile phone equipment networks CostTotal of datanet tools and Advance payment and assets equipment underTotal construction of mobile phone networks Advance payment and assets Less Allowance for impairment under construction of mobile Assets under the phone networksAgreements for Allowance operationsfor impairment Less
Unit: Million Baht Consolidated financial statements Balance as at Additions Disposals Transfer/ Transfer toUnit: Balance at MillionasBaht January 1, Other TOT December 31, Consolidated financial statements 2016 2016 Balance as at Additions Disposals Transfer/ Transfer to Balance as at January 1, Other TOT December 31, 2016 2016 1,248 1,248 1,248 1,248
1,248 31, FOR THE equipment YEAR ENDED DECEMBER Total 1,248
2016 -
-
-
-
1,248 1,248
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES Accumulated depreciation As at December 31, 2015 and amortization NOTES TO THE FINANCIAL STATEMENTS Cost of datanet tools and Unit: Million Baht 31, 2016 FOR THEequipment YEAR DECEMBER ADVANCED INFOENDED SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES (1,038) (1,038) Separate financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED (1,038) - AND ITS - SUBSIDIARIES (1,038) NOTES TOTotal THE FINANCIAL STATEMENTS Balance as at Additions Disposals Transfer/ Transfer to Balance Less Allowance for impairment (210) (210) as at NOTES TO YEAR THE FINANCIAL STATEMENTS 31, 2016 FOR Assets THE As at December 31, 2015 DECEMBER under theENDED Agreements January 1, Other TOT December 31, 31, 2016 FOR THE YEAR ENDED DECEMBER for operations Unit: Million 2015 2015Baht Separate financial statements As at December 31, 2015 Cost As at December December31,31, 2015 Balance as at Additions Disposals Transfer/ Transfer to Million Balance As at 2015 Unit: Bahtas at Cost of mobile phone : December Million Baht 31, Unit:Unit Million Baht January 1, Other TOT Unit: Million Baht financial statements networks 145,423 676 Separate (21,721) (31) (124,347) Consolidated financial statements 2015as at Additions Separate financial statements Separate financial statementsTransfer to Balance2015 Balance Disposals Transfer/ as Balance145,423 as at Additions to Balance as at Total 676 Disposals (21,721) Transfer/(31)Transfer (124,347) - at
FINANCAIL REPORT
Cost Balance as at Balance as31, Balance as Balance as atat31, January 1, Additions Disposals Transfer/ Other Transfer TOT to December December January 1, at Other TOT January 1, Transfer/ Transfer to December 31, Cost of mobile phone January Other TOT 2015 2015 2015 2015 31, Accumulated depreciation 2015 Cost networks 145,423 Additions676 Disposals (21,721) Other (31) TOT(124,347) 2015 Cost and Costamortization of mobile phone Cost 145,423 676 (21,721) (31) (124,347) CostTotal mobile phone Cost ofof mobile phone networks 145,423 676 (21,721) (31) (124,347) Costnetworks of mobile phone 145,423 676 (21,721) (31) (124,347) Cost of datanet tools and networks (137,320) (8,606) (21,721) 21,558 21 (124,347) 124,347 Accumulated networks 145,423 -- Total depreciation 145,423 676 (21,721) (31) (124,347) equipment 1,248 - 676 - (31) 1,248 (137,320) (8,606) 21,558 21 124,347 andTotal amortization 145,423 676 (21,721) (31) (124,347) Total 146,671 676 (21,721) (31) (124,347) 1,248 Cost of mobile phone Advance payment and assets Accumulated depreciation Accumulated depreciation networks (137,320) (8,606) 21,558 21 124,347 and amortization under construction of mobile and amortization CostTotal of mobile phone (137,320) (8,606) 21,558 21 124,347 phone networks 635 (612) (23) -Cost of mobile Costnetworks of payment mobile phone phone (137,320) (8,606) 21,558 21 124,347 Advance and assets (137,320) (8,606) 21,558 21 124,347 Assetsnetworks under the Agreements networks (137,320) (8,606) 21,558 21 124,347 -(137,320) (8,606) 21,558 21 124,347 under construction mobile Cost ofTotal datanet toolsof and 8,738 (8,542) (163) (33) for operations Total (137,320) (8,606) 21,558 21 124,347 equipment (1,038) - (612) - (1,038) Advance payment and assets phone networks 635 (23) Advance payment assets Total (138,358) (8,606) 21,558 21 124,347 (1,038) under construction of mobile Assets under the and Agreements Advance payment andofassets Million Depreciation and amortization 31,- 2015 under construction mobile for the years phone networks 635ended December (612) (23) - -Baht - -8,606 8,738 (8,542) (163) (33) for operations under construction of mobile phone networks 635 (612) (23) (2016 nil) the Agreements Assets phone:under networks 635 (612) (23) Assets under the Agreements 8,738 (8,542) (163) (33) - 8,606 for operations Less Allowanceand for amortization impairment for the(210) (210) Million Baht Depreciation years ended- December -31, 2015 8,738 (8,542) (163) (33) for operations Assets under the Agreements As(2016 part :ofnil)assets under the Agreement for operations are 13,198 towers that the Company has for operations (8,542) (33) Million - Baht - 8,606 Depreciation amortization for the8,738 years ended December 31,(163) 2015 transferred toandTOT PublicforCompany Limited. There are 152 towers andBaht 115 containers that Million 8,606 Depreciation and amortization the years ended December 31, 2015 (2016 : of nil)assets under the Agreement for operations are 13,198 towers that the Company As part has Depreciation and amortization for the years ended December 31, 2015 Million Baht 8,606 Digital Company Limited, a subsidiary, has transferred to CAT Public Company (2016 :Phone nil) (2016 : nil) transferred to TOT Public Company Limited. There are 152 towers and 115 containers that
Limited. Group hasthe anAgreement opinion that towers are and13,198 the containers the tools As part The of assets under for the operations towers thatare thenot Company hasand Digital Phone Company Limited, afor subsidiary, has transferred toshall CAT Public Company As part of assets under the Agreement operations are 13,198 towers that the Company has equipment specified under the Agreement. Therefore, the Group not be obligated to transferred to TOT Public Company Limited. There areassets 152 towers containers that The grossThe amount of the Group’s fullytheamortized underand the115 Agreements forand Limited. Group has an opinion that towers and the containers are not the tools transferred totowers TOT Public Company Limited. 152also towers 115the containers that transfer and the containers. The There Group has submitted disputes to the Digital the Phone Company subsidiary, hasare transferred toand CAT Public Company operations that was still inLimited, use ata December 31, 2015 amounted to Baht million equipment specified under the as Agreement. Therefore, the Group shall not1,248 beCompany obligated to Digital Phone Company Limited, a subsidiary, has transferred to CAT Public Limited. The Group has opinion that the of towers andthe theArbitral containers are nottothe tools Dispute Reconciliation, theanCourt of Justice request Tribunal give an and award (December 31, 2016: nil). transfer the towers and thethe containers. The Group has also submitted the disputes totothe Limited. Theassets Group thatasthe towers and theAgreement containers arenot not the tools and equipment specified under Agreement. Therefore, the Group shall be obligated that the said arehas notantheopinion property stipulated in the in July 2014. Dispute Reconciliation, the Court of Justice of request the Arbitral Tribunal to give an award
equipment underthethecontainers. Agreement. thealso Group shall not obligated to transfer thespecified towers and TheTherefore, Group has submitted thebedisputes to the that the said assets are not the property as stipulated in the Agreement in July 2014. transfer the towers and the containers. The Group has also submitted the disputes to the Dispute Reconciliation, the Court of Justice of request the Arbitral Tribunal to give an award Dispute thethe Court of Justice of request Arbitral Tribunal give an award that the Reconciliation, said assets are not property as stipulated in the the Agreement in Julyto2014. 13. GOODWILL that the said assets are not the property as stipulated in the Agreement in July 2014. GOODWILL 13. - 40 13. Movements GOODWILLin goodwill for the years ended December 31, are as follows: 13. GOODWILL Movements in goodwill for the years ended December 31, are as follows: 13. GOODWILL Unit: Unit Million : MillionBaht Baht Movements in goodwill for the years ended December 31, are as follows: Consolidated Unit: Million Baht Movements in goodwill for the years ended December 31, areConsolidated as follows: financial statements Consolidated financial statements Unit: Million Baht 2015 2016 financial statements 2016 2015 Unit: Million Baht Consolidated
2016 Consolidated financial statements 2015 financial 14,352statements 2016 2015 14,352 14,352 14,352 2016 14,352 2015 14,352 14,352 14,352 14,352 14,352 14,352 14,352 14,352 14,352 14,352 14,352 (7,662) (7,662) (7,662) (7,662) (7,662) (7,662) (7,662) (7,662) (7,662) (7,662) (6,655) (6,655) (7,662) (7,662) (6,655) (6,655) (7,662) (7,662) (7,662) (7,662) 35 35 (6,655)35 (6,655)35 (6,655) (6,655) 35 35 35 35
Cost Cost As at January 1, As January 1, 31, Cost As atatDecember
As Cost Asat at December January 1, 31, As atatJanuary 1, 31, As December Accumulated amortization As at December 31, Accumulated amortization As at January 1, As at January 1, Accumulated amortization As at December 31, Accumulated As Asat at December January amortization 1, 31, Allowance for impairment As 1, impairment Allowance for AsatatJanuary December 31, Total As at December 31, Total Allowance for impairment Allowance for impairment Total Total
163
Advanced Info Service Public Company Limited
41---41
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS NOTES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER FOR THE YEAR ENDED DECEMBER FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31, 31, 2016 2016 FOR SPECTRUM LICENSES SPECTRUM LICENSES 14. SPECTRUMLICENSES LICENSES 14. SPECTRUM SPECTRUM LICENSES
Movements Movements in in spectrum spectrum licenses licenses for for the the years years ended ended December December 31, 31, are are as as follows: follows: As As at at December December 31, 31, 2016 2016 As at December 31, 2016 As at December 31, 2016
UnitMillion : MillionBaht Baht Unit: Unit: Million Baht Unit: Million Baht Unit: Million Baht Consolidated financial statements Consolidated financial statements Consolidated financial statements Consolidated financial statements Balance Additions Balance Balance as as at at Additions Balance as as at at Balance as at Additions Balance as at Balance as at Additions Balance as at Balance as at Balance as at January 1, December 31, January 1, December 31, January 1, December 31, January 1, December 31, January 1, 2016 December 31,2016 Additions 2016 2016 2016 2016 2016 2016 2016 2016
Consolidated financial statements
Cost Cost Cost Cost Spectrum Spectrum licenses licenses Spectrum licenses Spectrum licenses Total Total Total Total Accumulated Accumulated Amortization Amortization Accumulated Amortization Accumulated Amortization Spectrum licenses Spectrum licenses Spectrum licenses Spectrum licenses Total Total Total Total Spectrum Spectrum licenses Spectrum licenses licenses Spectrum licenses As As at at December December 31, 31, 2015 2015 As at December 31, 2015 As at December 31, 2015
55,010 55,010 55,010 55,010 55,010 55,010 55,010 55,010
69,132 69,132 69,132 69,132 69,132 69,132 69,132 69,132
124,142 124,142 124,142 124,142 124,142 124,142 124,142 124,142
(3,219) (3,219) (3,219) (3,219) (3,219) (3,219) (3,219) (3,219) 51,791 51,791 51,791 51,791
(5,545) (5,545) (5,545) (5,545) (5,545) (5,545) (5,545) (5,545) 63,587 63,587 63,587 63,587
(8,764) (8,764) (8,764) (8,764) (8,764) (8,764) (8,764) (8,764) 115,378 115,378 115,378 115,378
Consolidated financial statements
Cost Cost Cost Cost Spectrum licenses Spectrum licenses licenses Spectrum Spectrum licenses Total Total Total Total Accumulated Amortization Accumulated Amortization Amortization Accumulated Accumulated Amortization Spectrum Spectrum licenses licenses Spectrum licenses Spectrum licenses Total Total Total Total Spectrum Spectrum licenses licenses Spectrum licenses Spectrum licenses Amortization for the years ended December 31, Amortization for for the the years years ended ended December December 31, 31, Amortization Amortization for the years ended December 31, 2016 2016 2016 2016 2015 2015 2015 2015
14,644 14,644 14,644 14,644 14,644 14,644 14,644 14,644
40,366 40,366 40,366 40,366 40,366 40,366 40,366 40,366
55,010 55,010 55,010 55,010 55,010 55,010 55,010 55,010
(2,019) (2,019) (2,019) (2,019) (2,019) (2,019) (2,019) (2,019) 12,625 12,625 12,625 12,625
(1,200) (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) 39,166 39,166 39,166 39,166
(3,219) (3,219) (3,219) (3,219) (3,219) (3,219) (3,219) (3,219) 51,791 51,791 51,791 51,791
Million Million Baht Baht Million Baht Million Baht Million Baht Million Baht Million Baht Baht Million
5,545 5,545 5,545 5,545 1,200 1,200 1,200 1,200
On On October October 16, 16, 2012, 2012, Advanced Advanced Wireless Wireless Network Network Co., Co., Ltd. Ltd. (“AWN”), (“AWN”), aa subsidiary, subsidiary, was was the auction winner for 2.1 GHz license (3G) at the bidding price of Baht 14,625 million. On On December December 7, 7, 2012, 2012, AWN AWN was was officially officially granted granted the the license license to to operate operate 2.1 2.1 GHz GHz (3G) (3G) for for 15 years from the National Broadcasting and Telecommunications Commission (“NBTC”). 15 years from the National Broadcasting and Telecommunications Commission (“NBTC”). According to the auction terms and conditions, AWN paid 50% of the fee plus VAT, totalling Baht Baht 7,824 7,824 million million on on October October 19, 19, 2012 2012 and and submitted submitted bank bank guarantee guarantee to to pay pay the the remaining remaining fee to the NBTC. Another 25% was paid in the second year on December 22, 2014, and the remaining remaining was was paid paid in in the the third third year year on on December December 22, 22, 2015. 2015. On On November November 17, 17, 2015, 2015, AWN AWN was was the the auction auction winner winner for for 1800 1800 MHz MHz license license at at the the bidding price of Baht 40,986 million. AWN was officially granted the license to operate 1800 1800 MHz MHz from from the the National National Broadcasting Broadcasting and and Telecommunications Telecommunications Commission Commission (“NBTC”). According to the auction terms and conditions, AWN paid 50% of the fee plus plus VAT, VAT, totalling totalling Baht Baht 21,928 21,928 million million on on November November 23, 23, 2015 2015 and and submitted submitted bank bank guarantee to pay the remaining fee to the NBTC. Another 25% will be paid in the second year, year, and and the the remaining remaining will will be be paid paid in in the the third third year. year.
Annual Report 2016
164
FINANCIAL REPORT
Unit: Unit: Million Baht UnitMillion : MillionBaht Baht Unit: Million Baht Unit: Million Baht Consolidated financial statements Consolidated financial statements Consolidated financial financial statements statements Consolidated Balance as at Additions Balance as at Balance as as at at Additions Balance as as at at Balance Additions Balance Balance Additions Balance as January December 31, January 1, December 31, Balance asas1, atat Balance as atat January 1, December 31, January 1, December 31, 2015 2015 2015 2015 January 1, 2015 December 31,2015 Additions 2015 2015 2015 2015
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On May 27, 2016, AWN was the auction winner for 900 MHz license at the bidding price of Baht 75,654 million. AWN was officially granted the license to operate 900 MHz from the National Broadcasting and Telecommunications Commission (“NBTC�). According to the auction terms and conditions, AWN paid 11% of the fee plus VAT, totalling Baht 8,603 million on June 28, 2016 and submitted bank guarantee to pay the remaining fee to the NBTC. Another payment will be paid in the second year and the third year by 5% each year, and the remaining will be paid in the fourth year. The cost of spectrum licenses are initial recognition by measuring at the cash equivalent price based on the present value of its acquisition cost. 15. OTHER INTANGIBLE INTANGIBLE ASSETS ASSETS 15. OTHER Movements in other intangible assets for the years ended December 31, are as follows:
FINANCAIL REPORT
As at December 31, 2016
Cost Software licenses Total Accumulated amortization Software licenses Total Assets under installation Other intangible assets
Balance as Balance as at at January January 1, 1, 2016 2016 5,804 5,804 (2,694) (2,694) 82 3,192
Consolidated financial statements Consolidated financial statements Additions
Disposals
Additions
Disposals
1,310 1,310 (658) (658) 163 815
-
Balance asas atat Balance December December31, 31, 2016 2016
Transfer/ Transfer/ Other
Other
(25) (25) 25 25
Unit : Million Baht
Unit: Million Baht
-
117 117
7,206 7,206
(25) 92
(3,327) (3,327) 220 4,099
As at December 31, 2015
Cost Software licenses Total Accumulated amortization Software licenses Total Assets under installation Other intangible assets
Balance Balanceas asatat January 1,1, January 2015 2015 4,618 4,618 (2,152) (2,152)
38
2,504
Amortization for the years ended December 31, 2016 2015
165
Advanced Info Service Public Company Limited
Unit : Million Baht
Unit: Million Baht
Consolidated financial statements Consolidated financial statements Additions
Disposals
Additions
Disposals
1,143 1,143 (536) (536) 67 674
-
Transfer/ Transfer/ Other
Other
Balance as Balance as at at December 31, December 31, 20115 2015
(2) (2)
45 45
5,804 5,804
(2)
(6) (6) (23) 16
(2,694) (2,694) 82 3,192
Million Baht Million Baht
658 536
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED NOTES TO FINANCIAL STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED NOTES TOTHE THE STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED 31, FOR THE YEAR ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS 31, 2016 2016 FOR THE YEAR ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016 As AsatatDecember December31, 31,2016 2016 As at at December December31, 31,2016 2016 As As at December 31, 2016
Cost Cost Software Softwarelicenses licenses Cost Cost Total Totallicenses Software Software licenses Total Total Accumulated Accumulatedamortization amortization Software Softwarelicenses licenses Accumulated amortization Accumulated amortization Total Software Totallicenses Software licenses Other assets Otherintangible intangible assets Total Total Other intangible assets Other intangible assets As AsatatDecember December31, 31,2015 2015 As at December 31, 2015 As December31, 31,2015 2015 As at December
Balance Balance as at Balanceas asat January 1, January 1,1,at Januaryas Balance Balance as at 2016 2016 2016 1, January January 1, 2016 2016 480
480 480 480 480 480 480
(408) (408) (408) (408) (408) 72 72 (408) (408)
16. 16. 16. 16. 16.
SUBSIDIARIES SUBSIDIARIES SUBSIDIARIES SUBSIDIARIES
Unit: Million Baht
Separate financial statements
(25) (25) (25) (25) (25) (25) (25) (25) (25) (25)
25 25 25 25 25 -- 25 25 -
(408) (408) (408) (408) (408) 47 47 (408) (408) 47 47
----
Unit: Unit: Million Million Baht Unit: MillionBaht Baht Separate Separatefinancial financial statements statements Unit: Million Baht Unit: Million Baht Additions Transfer/ Balance as at Additions Disposalsstatements Transfer/ Separate Disposals financial Separate financial statements Other December Other Additions Disposals Transfer/ Balance as as31, at Additions Disposals Transfer/ Balance at 2015 Other December 31, Transfer/ December 31, Other 2015 Addittions Disposals Other 2015 2015 -(2) 8 480 (2) -(2) 8 480 (2) (2) 8 480 (2) 8 480 (2) 8 480
Separate financial statements
(41) (41) (41) (41) (41) (41) (41) (41) (41) (41)
--(2) - (2) (2) (2)
(5) (5) (5) (5) (5) 3 (5) (5) 3 3
(408) (408) (408) 72 (408) (408) 72 72
Million Baht Baht Million Million Baht Million Million Baht Million Baht Million Baht
25 25 41 25 41 41
DEFERRED TAX TAX ASSETS ASSETS DEFERRED DEFERRED TAX ASSETS DEFERRED TAX ASSETS
DEFERRED TAX ASSETS
Deferredtax taxassets assetsand andliabilities liabilitiesas asatatDecember December 31, 31, are are as as follows: follows: Deferred Deferred tax assets and liabilities as at December 31, are as follows: Deferred tax assets and liabilities as at December 31, are as follows:
Deferredtax taxassets assets Deferred liabilities Deferred tax assets Deferred Deferredtax taxliabilities assets Deferred tax Deferredtax taxliabilities -net net Deferred Deferred tax -liabilities Deferred tax - net Deferred tax - net
Consolidated Consolidated Consolidated financial statements Consolidated financial statements financial statements Consolidated 2016 2015 financial statements 2016 2015 financial 2016 statements 2015 2016 2015 2016 2015 2,639 1,273 2,639 1,273 (21) (21) 2,639 1,273 (21) (21) 2,639 1,273 (21) (21) 2,618 1,252 2,618 1,252 (21) (21) 2,618 1,252 2,618 1,252
Unit:Unit: Million MillionBaht Baht Unit: Million Baht Separate Separate Unit: Million Baht financial statements Separate financial financial statements Separate 2016 2015 financial statements 2016 2015 financial statements 2016 2015 2016 2015 2016 2015 875 86 875 86 (7) (21) 875 86 (7) (21) 875 86 (7) (21) 868 65 868 65 (7) (21) 868 65 868 65
Annual Report 2016
44---44
166
FINANCIAL REPORT
Cost Cost Software Softwarelicenses licenses Cost Cost Total Software Totallicenses Software licenses Total Total Accumulated Accumulatedamortization amortization Software licenses (362) Software licenses (362) Accumulated amortization Accumulated amortization Total (362) Software (362) Totallicenses Software licenses (362) Other assets 112 Otherintangible intangible assets 112 Total (362) Total (362) Other intangible assets 112 Other intangible assets 112 Amortizationfor forthe theyears yearsended endedDecember December31, 31, Amortization 2016 2016 Amortization for the years ended December 31, Amortization for the years ended December 31, 2016 2015 2015 2016 2015 2015
ITS ITS ITS ITS
Unit: Unit: Million Million Baht Baht Separate financial statements Separate financial statements Unit: Million Baht Unit:Balance Million Baht Additions Disposals Transfer/ as at Additions Disposals Transfer/ Balance as at Separate financial statements Separate financial statements Other December Transfer/ December 31, Other Additions Disposals Transfer/ Balance as31, at Additions Disposals Transfer/ Balance at 2016 Addittions Disposals Other 2016as31, December Other December 31, 2016 2016455 -(25) -(25) 455 -(25) -455 (25) 455 (25) 455 (25) 455 (25) 455
72 72
Balance Balanceas asat at January 1,1,at January Balance as Balance Balance as at 2015 2015 1, January January January 1, 1, 2015 2015 2015 474 474 474 474 474 474 474
AND AND AND AND
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO YEAR THE FINANCIAL STATEMENTS 31, 2016 FOR THE ENDED DECEMBER FOR THE YEAR ENDED DECEMBER 31, 2016
Movements in deferred tax assets and liabilities for the years ended December 31, are as Movements in deferred tax assets and liabilities for the years ended December 31, are as follows: follows: As at December 31, 2016 As atat December December31, 31,2016 2016
FINANCAIL REPORT
Deferred tax assets Trade receivables Deferred tax assets(doubtful accounts) Inventories (allowance for obsolescence and Trade receivables (doubtful accounts) decline in value) Inventories (allowance for obsolescence and Unearned decline inincome value) - mobile phone service (incomeincome recognized difference) Unearned - mobile phone service Accrued (income expense recognized difference) Employee benefit obligations Accrued expense Loss carrybenefit forward Employee obligations Others Loss carry forward Total Others Total Deferred tax liabilities Others tax liabilities Deferred Total Others Deferred tax - net Total Deferred tax - net As at December 31, 2015 As atat December December31, 31,2015 2015
Deferred tax assets Trade receivables Deferred tax assets(doubtful accounts) Inventories (allowance for obsolescence and Trade receivables (doubtful accounts) decline in(allowance value) Inventories for obsolescence and Assets the Agreements for operations declineunder in value) (amortization Assets under thedifference) Agreements for operations Unearned income - mobile phone service (amortization difference) (incomeincome recognized difference) Unearned - mobile phone service Employee benefit obligations (income recognized difference) Others benefit obligations Employee Total Others Total Deferred tax liabilities Prepaid revenue sharing expense Deferred tax liabilities (expense recognized Prepaid revenue sharingdifference) expense Others (expense recognized difference) Total Others Deferred tax - net Total Deferred tax - net
167
Advanced Info Service Public Company Limited
Unit: Million Baht
Consolidated financial statements Unit: Million Baht Consolidated financial statements Unit: Million Baht (Charged)/credited to Balanceasasatat Balance January 1, January 1, Balance as at 2016 2016 January 1, 2016 165 165 36 36 390 - 390 461 - 461 221 1,273 221 1,273 (21) (21) (21) 1,252 (21) 1,252
(Charged)/credited to Consolidated financial statements Balance Other Profit Other Balanceasasatat (Charged)/credited to December comprehensive December 31, comprehensive or loss Profit Other Balance as31, at Profit or loss 2016 income income 2016 comprehensive December 31, or loss income 2016 77 242 77 242 151 115 115 151 9 399 410 410 9 -399 67 528 410 410 400 400 67 -528 288 509 400 -400 1,366 2,639 288 -509 1,366 2,639 -- 1,366 1,366
---
(21) (21) (21) 2,618 (21) 2,618
Unit: Million Baht
Balanceasasatat Balance January 1, January Balance as at 2015 1, 2015 January 2015 186 186 114 114 355 355 394 302 394 158 302 1,509 158 1,509 (27) (40) (27) (67) (40) 1,442 (67) 1,442
- 45 -
Consolidated financial statements Unit: Million Baht Consolidated financial statements Unit: Million Baht (Charged)/credited to (Charged)/credited to
Consolidated financial statements Balance Other Profit Other Balanceasasatat (Charged)/credited to December comprehensive December 31, comprehensive or loss Profit Other Balance as31, at Profit or loss comprehensive 2015 income income 2015 31, December or loss income 2015 (21) 165 (21) 165 36 (78) (78) 36 (355) (355) (4) 390 30 461 (4) - 129 390 63 - 129 221 30 461 (365) 1,273 63 - 129 221 (365) 129 1,273 27 19 27 46 19 (319) 46 (319)
--- 129 129
- (21) (21) (21) 1,252 (21) 1,252
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES NOTES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES 31, 31, 2016 2016 FOR FOR THE THE YEAR ENDED ENDED DECEMBER DECEMBER NOTES TO YEAR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER
31, 2016
As AsatatDecember December31, 31,2016 2016 As atatDecember December 2016 As 31,31,2016
Deferred Deferredtax taxassets assets Accrued expense Accrued expense Deferred tax assets Employee benefitobligations obligations Employee benefit Accrued expense Loss carryforward Loss carryforward Employee benefit obligations Total Total Loss carryforward
Total Deferredtax taxliabilities liabilities Deferred Others Others Deferred tax liabilities Total Total Others Deferredtax tax--net net Deferred Total
Balance Balance asat Balanceasas atat January January 1, January 1, Balance as at 2016 1, 2016 January 2016 --
86 86 -- 86 86 86 86 (21) (21) (21) (21) (21) 65 65 (21) 65
As at December 31, 2015
As at December 31, 2015
Deferred Deferredtax taxassets assets Trade Trade receivables receivables (doubtful (doubtfulaccounts) accounts) Deferred tax assets Inventories Inventories (allowance (allowance for for obsolescense obsolescense and Trade receivables (doubtful accounts) and decline decline in in value) value) Inventories (allowance for obsolescense and Assets Assets under the theAgreements Agreementsfor foroperations operations declineunder in value) (amortization (amortization difference) difference) Assets under the Agreements for operations Unearned Unearned income income --mobile mobilephone phoneservice service (amortization difference) (income (income recognized recognized difference) difference) Unearned income - mobile phone service Employee Employee benefit benefitobligations obligations (income recognized difference) Others Others Employee benefit obligations Total Total Others Total Deferred Deferredtax taxliabilities liabilities Prepaid Prepaidrevenue revenuesharing sharingexpense expense Deferred tax liabilities (expense (expenserecognized recognizeddifference) difference) Prepaid revenue sharing expense Others Others (expense recognized difference) Total Total Others Deferred Deferredtax tax--net net Total Deferred tax - net
Balanceas asatat Balance January January Balanceasas1,at1,at Balance 2015 2015 1, January 1, January
2015 2015
41 41
Profit Profit Other Other Balance Balance Balance asasas atatat Other (Charged)/credited to or or loss loss December December 31, comprehensive comprehensive December 31, comprehensive Profit Other Balance as 31, at Profit or loss income income 2016 2016 2016 income or loss comprehensive December 31, income 2016 410 410 410 -410 (21) 65 (21) 65 410 410 400 400 400 400 (21) 65 789 875 789 875 400 --400 789
-
875
14 14 14 1414 803 803 14
------
(7) (7) (7) (7) (7) 868 868 (7)
803
-
868
Unit: Million Baht Unit: Unit:Million Million Baht Baht Separatefinancial financialstatements statements Separate Unit: Million Baht (Charged)/creditedto to (Charged)/credited Separate financial statements Profit Other Balanceas asatat Profit Other Balance (Charged)/credited to orloss loss or December December 31, comprehensive comprehensive Balance Other Profit Other Balanceasasat31, at income income 2015 2015 comprehensive or loss December31, 31, comprehensive December
Separate financial statements (Charged)/credited to Profit or loss
(41) (41)
2015 2015
income income --
--
41 88 88
(41) (88) (88)
--
--
88 355 355
(88) (355) (355)
--
--
355 122 122 82 82 122 47 8247 735 735 47
(355) (122) (122) 77 (122) (47) (47) 7 (646) (646) (47)
--
--
735
(646)
(27) (27) (40) (40) (27) (67) (67) (40) 668 668 (67)
27 27 19 19 27 46 46 19 (600) (600) 46
668
(600)
--
-----
(3) (3) (3) (3) (3) (3)
86 86 -- 86 86 86 86 --
(3) (3) (3)
Annual Report 2016
(21) (21) (21) (21) (21) 65 65 (21) 65
168
FINANCIAL REPORT
Deferred tax - net AsatatDecember December31, 31,2015 2015 As
Unit: Million Baht
Unit: Unit:Million MillionBaht Baht Separate financial statements Separate Separatefinancial financialstatements statements (Charged)/credited to Unit: Million Baht (Charged)/credited (Charged)/credited to Separate financial statements
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANYLIMITED LIMITEDAND ANDITS ITS SUBSIDIARIES SUBSIDIARIES NOTES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED INFOENDED SERVICE PUBLIC COMPANY 31, 31, 2016 2016 LIMITED AND ITS SUBSIDIARIES FOR FOR THE THE YEAR YEAR DECEMBER DECEMBER NOTES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31, 2016 2016 FOR FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31, 2016
Deferred arising from from significant significanttemporary temporarydifferences differencesandand unused Deferred tax assets arising unused lossloss carryforward have not not been beenrecognized recognizedininthe thefinancial financial statements at December carryforward that have statements as as at December 31, 31, Deferred Deferred tax tax assets assets arising arising from from significant significant temporary temporary differences differences and and unused unused loss loss are areas as follows: follows: Deferred tax assets arising from significant temporary differences and unused loss carryforward carryforwardthat thathave havenot notbeen beenrecognized recognizedininthe thefinancial financialstatements statementsas as at at December December 31, 31, Unit: Unit: Million Million BahtBaht carryforward that have not been recognized in the financial statements as at December 31, are areas asfollows: follows: Consolidated Consolidated Separate Separate Unit: Million Baht are as follows:
Unit: Unit: Million MillionBaht Baht financial financial statements statements financial financial statements statements Unit: Million Baht Consolidated Separate Consolidated Consolidated Separate Separate 2016 2016 2015 2015 2016 2016 Separate 20152015 Consolidated financial statements financial statements financial financialstatements statements financial financialstatements statements financial statements financial statements 2016 2015 2016 2015 2016 2015 2015 2016 2015 Loss Loss carryforward carryforward 385 385 1,410 1,410 - 2016 1,022 1,022 2016 2015 2015 Impairment Impairment loss on investments investments -- 1,649 1,649 1,649 1,649 Loss Loss carryforward carryforward 385 385 1,410 1,410 -1,022 1,022 Accrued Accrued expense expense of the the Agreements Agreementsfor for Loss carryforward 385 1,410 1,022 Impairment loss on investments 1,649 1,649 Impairment loss on investments 1,649 1,649 operations operations loss on investments - -- -1,649 - -1,649 Impairment -238238 Accrued Accrued expenseofofthe theAgreements Agreementsfor for Others Others expense 107 107 - 101101 - Accrued expense of the Agreements for -1,750 -2,671 operations -492 238 operations 238 492 1,648 1,648 1,750 2,671 Total Total operations 238 Others 107 -101 -Others 107 101 Others 107 101 492 1,648 1,750 2,671 492 1,648 1,750 2,671 Total Total As AsTotal at at December December 31, 31, 2015, 2015, the the Group Group and and492 the theCompany Company have havenotnotrecognized recognized loss loss 1,648 1,750 2,671
FINANCAIL REPORT
carryforward carryforward expired in in 2017-2020 2017-2020and andnonomaturity maturitytemporary temporary differences differences under under current current As As atat December December 31, 31, 2015, 2015, the the Group Group and and the the Company Company have have not not recognized recognized loss loss As at December 31, 2015, the Group anditems the because Company not recognized loss tax tax legalisation legalisation recognized recognized in in respect respect ofofthese these items because it is ithave is notnot probable probable thatthat future future carryforward carryforward expired expired inin 2017-2020 2017-2020 and and no no maturity maturity temporary temporary differences differences under under current current INFO SERVICE PUBLIC COMPANY LIMITED AND ITSthe SUBSIDIARIES carryforward in 2017-2020 and no maturity temporary differences under current taxable taxable profit profitexpired will be be ADVANCED available available against against which which the theGroup Group and and thethe Company Company cancan utilise utilise the tax taxlegalisation legalisationrecognized recognizedininrespect respectof ofthese theseitems itemsbecause becauseititisisnot notprobable probablethat that future future NOTES TO THE FINANCIAL STATEMENTS tax legalisation recognized in respect of these items because it is not probable that future benefits benefits therefrom. therefrom. taxable taxableprofit profit will willbe beavailable availableagainst against which whichthe theGroup Groupand andthe theCompany Companycan canutilise utilisethe the 31,the 2016 THE against YEAR ENDED DECEMBER taxable profit will be FOR available which the Group and Company can utilise the benefits therefrom. benefits therefrom. 2016, the As As at at December December the Group Groupand andthe theCompany Companyhave haverecognized recognized deferred deferred tax tax benefits therefrom.31, 2016, assets assets in in respect respect of loss loss carryforward carryforwardininpartial partialamount amountand andfullfull amount, amount, respectively, respectively, As the the Company As atat December December 31, 31, 2016, 2016, the Group Group and thearising Company have recognized recognized deferred deferred tax tax Deferred tax and assets fromhave significant temporary differences and unuse As at December 31, 2016, the Group the Company have recognized deferred tax because because itit is probable probable that that future future taxable taxableand profit profit will will bebeavailable available against against which which the the Group Group assets inin partial amount assets inin respect respect of of loss loss carryforward carryforward partial amount and and full full amount, amount, respectively, respectively, carryforward that have not been recognized in the financial statements as at Decem assets respect of carryforward in partial amount and full amount, respectively, and andthe theinCompany Company can canloss utilize utilize the the benefits therefrom. therefrom. are asbenefits follows: because taxable becauseititisisprobable probablethat thatfuture future taxableprofit profitwill willbe beavailable availableagainst againstwhich whichthe theGroup Group because it is probable that future taxable profit will be available against which the Group Unit: Milli and andthe theCompany Companycan canutilize utilizethe thebenefits benefitstherefrom. therefrom. and the Company can utilize the benefits therefrom. Consolidated Separate
INTEREST-BEARING LIABILITIES LIABILITIES 17. 17. INTEREST-BEARING
17. INTEREST-BEARINGLIABILITIES LIABILITIES 17. INTEREST-BEARING LIABILITIES 17. INTEREST-BEARING 17.
Interest-bearing Interest-bearing liabilities liabilities as asatatDecember December31, 31,are areasasfollows: follows: INTEREST-BEARING LIABILITIES Loss carryforward Interest-bearing Interest-bearingliabilities liabilitiesas asatat December December 31, 31,Consolidated are are as asfollows: follows: Consolidated Interest-bearing liabilities as atImpairment December are as follows: loss31, on investments financial statements statements Accrued expensefinancial of the Agreements for Consolidated Consolidated Consolidated Notes Notes 2016 2016 2015 2015 Consolidated operations financial statements financial financialstatements statements Current Current financial statements OthersNotes Notes 2016 2016 2015 2015 Notes 2016 2016 2015 Short-term Short-term loans loans from financial financial institutions institutions 9,200 9,200 8,500 8,500 2015 Total Notes Current Current
financial statements 2016 2015
Unit: Unit: Million Million Baht Baht 385 1,410 Separate Separate - Unit: - Baht Unit: Million Baht Unit: Million Million Baht financial financial statements statements Unit: Million Baht Separate Separate Separate 2016 2016 20152015 - Separate 238 financial statements financial financialstatements statements financial statements 107 2016 2016 2015 2015 2016 2015 5,700 5,700 7,700 7,700 2016 2015 492 1,648
financial statem 2016 1,649 -
101 1,750
Current Currentportion portion of long-term long-term liabilities liabilities Current Short-term Short-term loans loans from fromfinancial financialinstitutions institutions 9,200 9,200 8,500 8,500 5,700 5,700 7,700 7,700 --Current Current portion portion long-term long-term borrowings borrowings 2,041 2,041 4,314 4,314 2,041 2,041 4,314 4,314 Short-term loans fromoffinancial institutions 9,200 8,500 5,700 7,700 As at December 31, 2015, the Group and the Company have not recognize Current Current portion portion of of long-term long-term liabilities liabilities --Current Current portion portion of long-term long-term debentures debentures 3434 397 397 - - - Current portion of long-term liabilities ----Current Currentportion portionof long-term borrowings borrowings 2,041 2,041 4,314 4,314 2,041 2,041 4,314 4,314 carryforward in 2017-2020 and no maturity temporary Current Current portion portion ofoflong-term finance finance lease lease liabilities liabilities 3434 expired 4747 12 12 13 13differences under c 41 41 - Current portion of long-term borrowings 2,041 4,314 2,041 4,314 - -Current Currentportion portionofoflong-term long-termdebentures debentures 34 34 397 397 -- -items because - - it is not probable that tax legalisation recognized in respect of these Total Total current portion portion long-termliabilities liabilities 2,485 2,485 4,355 2,053 2,053 4,327 - current Current portion of long-term debentures 34 397 - 4,355 - 4,327 - -Current Currentportion portionofoffinance financelease leaseliabilities liabilities 34 34 will be47 47 12 12 13 13 41 41 available- against the the Short-term loans from related parties - 41 which 6,440 Short-term loans 34 - - 47 6,440 6,4906,490 - Current portion ofrelated financeparties lease taxable liabilities profit 34 12 Group and 13 Company can util Total Totalcurrent currentportion portionofoflong-term long-termliabilities liabilities 2,485 2,485 4,355 4,355 2,053 2,053 4,327 4,327 benefits therefrom. 11,685 12,855 14,193 18,517 11,685 12,855 14,193 18,517 Total current portion of long-term liabilities 2,485 4,355 2,053 4,327 Short-term Short-termloans loansfrom fromrelated relatedparties parties 34 34 --6,440 6,440 6,490 6,490 Non-current Non-current Short-term loans from related parties 34 6,440 6,490 11,685 11,685 12,855 12,855 14,193 14,193 18,517 18,517 liabilities Long-term Long-termliabilities As at December 11,685 31, 2016, the 12,855 Group and 14,193 the Company 18,517 have recognized deferr Non-current Non-current --Long-term Long-term borrowings borrowings 55,962 55,962 35,836 35,836 in partial 3,314 3,314 amount9,369 9,369 assets in respect of loss carryforward and full amount, respec Non-current Long-term Long-term liabilities liabilities --Long-term Long-term debentures debentures 3434 31,168 31,168 16,580 16,580 - - liabilities Long-term because it is probable that future35,836 taxable profit will be available against which the - -Long-term Long-term borrowings borrowings 55,962 55,962 35,836 3,314 3,314 9,369 9,369 Finance Finance lease lease liabilities liabilities 3434 143 143 161 161 31 31 44 44 ---Long-term borrowings 55,962 35,836 3,314 9,369 and the Company can utilize the benefits therefrom. - -Long-term Long-termdebentures debentures 34 34 31,168 31,168 16,580 16,580 --87,273 87,273 52,577 52,577 3,345 3,345 9,413 - Long-term debentures 34 31,168 16,580 - 9,413 - -Finance Financelease leaseliabilities liabilities 34 34 143 143 161 161 31 31 44 44 98,958 98,958 65,432 65,432 17,538 17,538 27,930 27,930 Total Total - Finance lease liabilities 34 143 161 31 44 87,273 87,273 52,577 52,577 3,345 3,345 9,413 9,413 87,273 52,577 3,345 9,413 LIABILITIES 17. INTEREST-BEARING 98,958 98,958 65,432 65,432 17,538 17,538 27,930 27,930 Total Total Total 98,958 65,432 17,538 27,930
Interest-bearing liabilities as at December 31, are as follows:
169
Advanced Info Service Public Company Limited
- -4747- -
Consolidated financial statements
Unit: Mill
Separate financial stateme
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 NOTES TOYEAR THE ENDED FINANCIAL STATEMENTS 31, 2016 FOR THE DECEMBER FOR THE YEAR ENDED DECEMBER 31, 2016
The periods to maturity of interest-bearing liabilities, excluding finance lease liabilities as The periods to31, maturity of interest-bearing liabilities, excluding finance lease liabilities as at December are as follows: The periods to of interest-bearing liabilities, excluding finance lease liabilities as at December 31,maturity are as follows: at December 31, are as follows: MillionBaht Baht Unit: Unit: Million
Within one year Within oneyear yearbut within five years After one After one year but within five years Within one year After five years After five years After one year but within five years Total After five years Total Total
Consolidated Consolidated Consolidated financial statements statements financial statements Consolidated 2016 2015 2016 statements 2015 2016 2015 financial 2016 2015 11,638 12,814 11,638 12,814 50,245 30,536 50,245 30,536 11,638 12,814 36,885 21,880 36,885 21,880 50,245 30,536 98,768 65,230 36,885 21,880 98,768 65,230 98,768 65,230
Unit: Million Baht Separate Separate Unit: Million Baht financialstatements statements financial financial statements Separate 2016 2015 2016 2015 2016 2015 financial statements 2016 2015 14,181 18,504 14,181 18,504 3,314 9,369 9,369 14,181 18,504 -3,314 -17,495 - 9,369 3,314 27,873 17,495 27,873 17,495 27,873
Thai Baht (THB) Thai Baht (THB) US Dollar (USD) US Dollar Thai (THB) TotalBaht (USD) US Dollar (USD) Total Total
Consolidated Consolidated financial statements Consolidated financial statements Consolidated 2016 2015 2016 2015 financial statements statements 2016 2015 2016 2015 92,920 55,715 92,920 55,715 6,038 9,717 6,038 9,717 92,920 55,715 98,958 65,432 6,038 9,717 98,958 65,432 98,958 65,432
Unit: Million Baht Separate Unit: MillionBaht Baht Separate Unit: Million financial statements Separate financial statements 2016 2015 financial 2016 2015 financialstatements statements 2016 2015 2016 2015 12,180 18,213 12,180 18,213 5,358 9,717 5,358 9,717 12,180 18,213 17,538 27,930 5,358 9,717 17,538 27,930 17,538 27,930
The currencies denomination of interest-bearing liabilities as at December 31, are as The currencies denomination of interest-bearing liabilities as at December 31, are as follows: The currencies denomination of interest-bearing liabilities as at December 31, are as follows: follows: Unit: Million Baht
170
FINANCIAL REPORT
- 48 -
Annual Report 2016
171
Advanced Info Service Public Company Limited
Interest rate (per annum)
LIBOR plus margin
LIBOR plus margin
20 equal installments from
Semi-annual
equal installments from Semi-annual 2008 to20 2018 2008 to 2018
Semi-annual
Principal payment term
and 2016
768
Total loans
USD 85.00 USD 85.00 Fixed LIBOR plus Semi-annual redeemed interest ratemargin as Semi-annual EntirelyEntirely redeemed in 2018 in 2018 Outstanding loan Interest rate Term of Principal payment term stipulated in the Fixed interest rate as Semi-annual Entirely redeemed in 2018 agreement in -foreign currency (per annum) interest stipulated in the 2016 2015 payment agreement (Million) Advanced Wireless Network Co., Ltd. Semi-annual 4 equal installments from Fixed interest rate as stipulated in the 2019 to 2021 agreement 6MTHBFIX plus margin Semi-annual 2 equal installments in 2020 Fixed interest rate as Semi-annual 7 equal installments from stipulated in the 2019 to 2022 agreement 6MTHBFIX plus margin Semi-annual Entirely redeemed in 2020 6MBIBOR plus margin Semi-annual 6 equal installments from 2020 - 49 - to 2023 6MBIBOR plus margin Semi-annual 5 equal installments from 2019 to 2023 - 49 6MTHBFIX plus margin Semi-annual 6 equal installments from 2021 to 2023 USD 18.89 6MLIBOR plus margin Semi-annual 2 equal installments from 2022
NOTES TO THE STATEMENTS USD 42.50 USDFINANCIAL 85.00 LIBOR plus margin Semi-annual 4 equal installments in 2016 2016 Semi-annual FOR THE YEAR ENDED DECEMBER and 2017 USD 42.50 USD 85.00 LIBOR plus31, margin 4 equal installments in 2016 1,530 and 2017 in 2018 USD 85.00 USD 85.00 LIBOR plus margin Semi-annual Entirely redeemed 3,060
USD 62.50
USD 35.54
Term of interest payment
financial statements
Consolidated
Unit: Million Baht
5,000 4,200
5,000 4,200 -
40,217
14,000 7,000 4,500 680 58,038
3,060 3,082 Consolidated 4,000 financial statements 2016 2015 4,000
5,000 12,300
1,530
5,000 12,300
-
2,265
768
3,0823,060
3,082
2,265
1,288
2015
1,5303,082
-
1,288
768
2016
3,082
1,530 3,082
2,265
3,082
2,265
1,288
5,358
-
-
-
-
13,717
-
-
-
-
3,060 Unit: Million3,082 Baht Separate 4,000statements financial 2016 2015 4,000
-
1,288
768
Separate financial statements 2016 2015
Unit: MillionUnit: Baht Million Baht TermTerm of paymentpayment term Separate of Principal Principal term Consolidated Consolidated Separate interest financial statements interest financial statements financial statements financial statements payment 2016 payment 2016 2015 20152016 20162015 2015
2 equal installments in 2015 USDSERVICE 62.50 LIBOR plus margin Semi-annual 2ITS equal installments in 2015 ADVANCED INFO PUBLIC COMPANY LIMITED AND SUBSIDIARIES and 2016
-
USD 21.32
Outstanding Interest raterate Outstandingloan loan Interest in (per(per annum) inforeign foreigncurrency currency annum) 2016 2015 2016 2015 (Million) (Million) Advanced Info Service Public Company Limited Advanced Info Service Public Company Limited USD 21.32 USD 35.54 LIBOR plus margin
Outstanding loan in foreign currency (Million) 2016 2015
The details detailsofoflong-term long-term borrowings at December 31,summarized are summarized as follows: The borrowings as atasDecember 31, are as follows:
Long-termborrowings borrowings Long-term Long-term borrowings
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
FINANCAIL REPORT
6MTHBFIX plus margin
6MLIBOR plus margin
-
-
USD 18.89 Total loans Less transaction cost Long-term borrowings
6MBIBOR plus margin
-
Interest rate (per annum)
-
Outstanding loan in foreign currency (Million) 2016 2015
Outstanding loan Interest rate in foreign currency (per annum) 2016 2015 (Million) Advanced Wireless Network Co., Ltd. Fixed interest rate as stipulated in the agreement 6MTHBFIX plus margin Fixed interest rate as stipulated in the agreement 6MTHBFIX plus margin 6MBIBOR plus margin
Semi-annual
Semi-annual
- 50 -
Entirely redeemed in 2020 6 equal installments from 2020 to 2023 5 equal installments from 2019 to 2023 6 equal installments from 2021 to 2023 2 equal installments from 2022
Semi-annual Semi-annual Semi-annual
2 equal installments in 2020 7 equal installments from 2019 to 2022
Principal payment term
4 equal installments from 2019 to 2021
Principal payment term
Semi-annual Semi-annual
Term of interest Semi-annual payment
Term of interest payment
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
FINANCIAL REPORT
Annual Report 2016
172
40,217 (67) 40,150
7,000 4,500 680 58,038 (35) 58,003
5,000 4,200
5,000 4,200 14,000
5,000 12,300
2015
5,000 12,300
2016
financial statements
Consolidated
Consolidated financial statements 2016 2015
5,358 (3) 5,355
-
-
-
-
13,717 (34) 13,683
-
-
-
-
Separate financial statements 2016 2015
Unit: Million Baht Separate financial statements Unit: Million 2016 2015 Baht
173
Advanced Info Service Public Company Limited
(Share)
1.78 6.64
6.64 7.82
7.82 7.18
1111 April 2014 April 2014
1111 April May2014 2016
1111 May 2016 May 2016
11 May 2016 7.18 Total debentures Less bond issuing cost Total debentures Long-term debentures Less bond issuing cost Long-term debentures
7.79 1.78
1111 April 2014 April 2014
11 April 2014 0.39 Advanced Wireless Network Co., Ltd. 1111 April 2014 0.39 April 2014 7.79
Issue date
7,180
7,820 7,180
6,638 7,820
1,776 6,638
7,789 1,776
397 7,789
397
Amount
No. of units Amount (Share) No. of units Amount Issue date No. of units (Share)Co., Ltd. Advanced Wireless Network
Issue date
Fixed interest rate of 3.39% Fixed interest rate Fixed interest rate ofof 3.39% 4.17% Fixed interest rate Fixed interest rate ofof 4.17% 4.56% Fixed interest rate Fixed interest rate ofof 4.56% 4.94% Fixed interest rate Fixed interest rate ofof 4.94% 2.51% Fixed interest rate Fixed interest rate ofof 2.51% 2.78% Fixed interest rate of 2.78%
(per annum)
Interest rate Interest rate (per annum) Interest rate (per annum)
- 51 -
- 51 -
Semi-annual
Semi-annual Semi-annual
Semi-annual Semi-annual
Semi-annual Semi-annual
Semi-annual Semi-annual
Semi-annual Semi-annual
interest payment Semi-annual
Term Termofof interest interest Term of payment payment
Entirely redeemed on April 11, 2017 Entirely redeemed onon Entirely redeemed April 11, 2017 April 11, 2019 Entirely redeemed onon Entirely redeemed April 11, 2019 April 11, 2021 Entirely redeemed onon Entirely redeemed April 11, 2021 April 11, 2024 Entirely redeemed onon Entirely redeemed April 11, 2024 May 11, 2023 Entirely redeemed onon Entirely redeemed May 11, 2023 May 11, 2026 Entirely redeemed on May 11, 2026
Principal payment term
Principal payment term Principal payment term
Consolidated Consolidated financial statements financial statements Consolidated 2016 2015 2016 2015 financial statements
Separate Separate financial Unit:statements Million Baht financial statements 2016Separate 2015 2016 2015 financial statements 397 397 7,789 7,789 1,776 1,776 6,638 6,638 -
- 16,600 - (20) 16,600 16,580 (20) 16,580
397 7,789 7,789 1,776 1,776 6,638 6,638 7,820 7,820 7,180 31,600 7,180 (35) 31,600 31,565 (35) 31,565
2015
397
2016
- - - -
- -
- -
- -
- -
-
2016
- - - -
- -
- -
- -
- -
-
2015
Long-term debentures As at December 31, the Group’s long-term debentures represent unsubordinated and unsecured debentures with a par value of Baht 1,000 each are as follows: As at December 31, the Group’s long-term debentures represent unsubordinated and unsecured debentures with a par value of Baht 1,000 Unit:each Million Baht are as follows: Unit: Million Baht
Long-term Long-term debentures debentures
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES FOR THE YEAR ENDED DECEMBER 31, 2016 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
FINANCAIL REPORT
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY NOTES THE STATEMENTS ADVANCED INFOTO SERVICE PUBLIC COMPANY LIMITED LIMITED AND ITS NOTES TOYEAR THE STATEMENTS 31, 2016 LIMITED FOR THE ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY THE ENDED DECEMBER 31, 2016 31, 2016 FOR THEFOR YEAR ENDED NOTES TOYEAR THEDECEMBER FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
AND ITS SUBSIDIARIES AND ITS SUBSIDIARIES SUBSIDIARIES AND ITS SUBSIDIARIES
Under the terms and conditions of the long-term borrowings and debentures, the Group has to comply with certain restrictions maintainborrowings certain financial ratios. the and conditions of theand long-term and debentures, Under theUnder terms andterms conditions of the long-term borrowings and debentures, the Groupthe Group has to comply with certain restrictions and maintain certain financial ratios. has to comply with and maintain certain financial ratios. Under thecertain terms restrictions and conditions of the long-term borrowings and debentures, the Group As 31,certain 2016, restrictions the Group and has maintain undrawn certain committed loansratios. amounting to Baht hasatto December comply with financial 6,000 million, USD million and ashas at undrawn Decembercommitted 31, the Group has undrawn As at December 31, 2016, the loans amounting to Baht As at December 31, 2016, the38 Group hasGroup undrawn committed loans2015 amounting to Baht committed loans amounting to Baht 32,000 million, and the Company has no 6,000 million, USD 38 million and as at December 31, 2015 the Group has undrawn 6,000 million, USD 38 million and as at December 31, 2015 the Group has undrawn As at December 31, 2016, the Group has undrawn committed loans amounting to Baht loans. loansUSD amounting to Baht 32,000 million, and Company has has no undrawn committedcommitted loansmillion, amounting to 38 Baht 32,000 and the Company has undrawn 6,000 million andmillion, as at December 31, the 2015 thenoGroup undrawn loans. committedcommitted loans. committed loans amounting to Baht 32,000 million, and the Company has no undrawn The carrying amount and fair values of long-term debentures (gross of issue costs) as at committed loans. December 31, arefair as follows: The carrying amount and fair of long-term of issue as at The carrying amount and values of values long-term debenturesdebentures (gross of (gross issue costs) as costs) at are as follows: DecemberDecember 31, carrying are as 31, follows: The amount and fair values of long-term debentures (gross of issue costs) as at MillionBaht Baht Unit: Unit: Million December 31, are as follows:
debentures have been determined based on quoted prices 31,600 16,600 32,082 selling17,958 The Thai Bond debentures Market Association the close the on business at the end of * from Fair for traded have beenatdetermined based quotedprices selling prices * Fair values forvalues traded debentures have been determined based on of quoted selling reporting the reporting period. from The Thai Bond Market Association at the close of the business at the end of from The Thai Bond Market Association at the close of the business at the end of * Fair values for traded debentures have been determined based on quoted selling prices reporting reporting reporting the reporting period. from Thethe Thai Bond period. Market Association at the close of the business at the end of Movement of interest-bearing liabilities for the years ended December 31, are as follows: reporting the reporting period. of interest-bearing for the years ended December are as follows: MovementMovement of interest-bearing liabilities liabilities for the years ended December 31, are as 31, follows: Unit: Baht Movement of interest-bearing liabilities for the years ended December 31, are Million as follows:
Consolidated Separate Unit: Million Baht Unit: Million Baht financial statements financial statements Unit: Million Baht Consolidated Separate Consolidated Separate Unit: Million Baht 2016 2015 2016 2015 financial statements financial statements financial statements Consolidated Separate Consolidated financial statements Separate 2016 20152016 2016 2015 2016 2015 statements 2015 statements financial statements financial statements financial financial As at January 1, 65,432 37,050 27,930 15,430 2016 2015 2016 2015 2016 2015 2016 2015 Additions 80,169 46,329 14,523 31,116 As at January 1, 65,432 37,050 27,930 15,430 As at January 1, 65,432 37,050 27,930 15,430 Borrowing cost (5) (32) Additions 80,169 46,329 14,523 31,116 Additions As at January 1, 80,169 46,329 14,523 31,116 65,432 37,050 27,930 15,430 Bond issuing cost (20) Borrowing cost (5) (32) Borrowing cost (5) Additions 80,169 (32) 46,329 14,523 31,116 Repayments (46,026) (18,635) (24,286) (19,315) -Bond issuing cost (20) Bond issuing cost (20) Borrowing cost (5) (32) Terminate finance lease Repayments (46,026) (18,635) (24,286) (19,315) RepaymentsBond issuing cost (46,026) (18,635) - (24,286) (20) - (19,315) liabilities cost lease (17) Terminate finance Terminate finance lease Repayments (46,026) (18,635) (24,286) (19,315) Unrealized (gain) loss on foreign exchange (634) 693 (660) 693 liabilities cost (17) liabilities Terminate cost (17) finance lease Amortization as expense 42 27 31 23 Unrealized (gain) loss on foreign exchange (634) 693 (660) 693 Unrealized (gain) loss oncost foreign exchange (634) 693 693 - (660) liabilities (17) As at December 31, 98,958 65,432 17,538 27,930 Amortization as expense 42 27 31 23 Amortization as expense(gain) loss on foreign exchange 42 Unrealized (634) 27 693 31 (660) 23 693 As at 31, December 31, 98,958 65,432 17,538 27,930 As at December 98,958 65,432 17,538 27,930 31 23 Amortization as expense 42 27 As at December 31, 98,958 65,432 17,538 27,930
Annual Report 2016
174
FINANCIAL REPORT
Long-term debentures Long-term debentures Long-term debentures *Long-term Fair values for traded debentures
Consolidatedfinancial financial statements Unit: Million Baht Unit:statements Million Baht Consolidated Carrying amount Fair values* Consolidated financial statements Consolidated financial statements Unit: Million Baht CarryingConsolidated amount Fair values* 2016 2015 financial 2015 Carrying amount Fair values* Carrying 2016 amount Fair values* statements 2016 2016Fair 2016 20152016 2015 2015 amount 2015 values* Carrying 2016 2015 2016 2015 31,600 16,600 32,082 17,958 2016 2016 2015 2015 31,600 16,600 32,082 17,958 31,600 16,600 32,082 17,958
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED ANDAND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31, 31, 20162016 FORFOR THETHE YEAR YEAR ENDED ENDED DECEMBER DECEMBER FOR THE YEAR ENDED DECEMBER 31, 2016
The effective effective weighted weighted interest interest rates as at December 31, 31, as arefollows: as follows: The The effective weighted interest ratesrates as at atasDecember December 31, are are as follows:
Short-term borrowings Short-term borrowings Short-term borrowings Long-term borrowings Long-term borrowings Long-term borrowings Long-term debentures Long-term debentures Long-term debentures Finance lease liabilities Finance lease liabilities Finance lease liabilities
Consolidated Consolidated Consolidated Consolidated financial statements financial financial statements statements financial statements 20162016 2015 2015 2015 2016 2016 2015 1.63 1.63 1.63 2.60 2.60 2.60 3.62 3.62 3.62 5.79 5.79 5.79
1.64 1.64 1.64 2.97 2.97 2.97 4.50 4.50 4.50 5.59 5.59 5.59
Unit: Percent annum Unit:Unit: Percent Percent perper annum per annum Unit: Percent per annum Separate Separate Separate statements financial financial statements financial statements 2016 2016 20152015 2016 2015 2016 2015 1.62 1.62 1.62 2.58 2.58 - 2.58- 4.81 4.81 4.81
1.64 1.64 1.64 3.25 3.25 - 3.25 - 4.84 4.84 4.84
18. TRADE AND OTHER PAYABLES 18. TRADE TRADE AND AND OTHER OTHER PAYABLES PAYABLES 18. 18. TRADE AND OTHER PAYABLES
FINANCAIL REPORT
Trade and and other payables as atasDecember 31, are Trade payables at December 31, as arefollows: as follows: Trade and otherother payables as at December 31, are as follows:
Trade Trade payables payables Trade payables Related Related parties parties Related parties OtherOther parties parties Other parties TotalTotal - trade - trade payables payables Total - trade payables
Other Other payables payables Other payables Accrued Accrued expenses expenses Accrued expenses Valued added tax payable Valued added tax payable Valued addedtax tax payable Withholding Withholdingpayable tax payable Withholding tax payable Others Others Others TotalTotal - other payables - other payables Total - other payables TotalTotal tradetrade and other payables and other payables Total trade and other payables
Consolidated Consolidated Consolidated Consolidated financial financial statements financial statements statements financial statements NotesNotes 20162016 20152015 Notes 2016 2015 2016 2015 Notes
Unit:Unit: Million Baht Unit: Million Million BahtBaht Unit: Million Baht Separate Separate Separate Separate financial financial statements statements financial statements financial statements 20162016 20152015 2016 2015 2016 2015
34 34 300 300 34 300 17,437 17,437 17,437 17,737 17,737 17,737
323 323 323 14,035 14,035 14,035 14,358 14,358 14,358
219 219 219 38 38 38 257 257 257
264 264 264 279 279 279 543 543 543
34 34 15,700 15,700 34 15,700 171 171 171 262 262 262 34 34 422 422 34 422 16,555 16,555 16,555 34,292 34,292 34,292
12,668 12,668 12,668 154 154 154 280 280 280 291 291 291 13,393 13,393 13,393 27,751 27,751 27,751
2,8142,814 2,814 8 8 58 5 25 2 2 2,8292,829 2,829 3,0863,086 3,086
2,5272,527 2,527 79 79 79 45 45 45 282 282 282 2,9332,933 2,933 3,4763,476 3,476
The currencies currencies denomination denomination of of trade payables payables as at December 31, 31, as arefollows: as follows: The The currencies denomination of trade trade payables as at atasDecember December 31, are are as follows:
Thai Thai Baht Baht (THB) (THB) Thai BahtDollar (THB) US Dollar US (USD) (USD) US (USD) EuroDollar Euro (EUR) (EUR) Euro (EUR) Yen (JPY) Yen (JPY) Yen (JPY) Singapore Singapore Dollar Dollar (SGD) (SGD) Singapore Dollar (SGD) TotalTotal Total
175
Consolidated Consolidated Consolidated financial financial statements statements financial statements financial statements 20162016 20152015 2015 2016 2015
12,278 12,278 12,278 5,4385,438 5,438 1 1 1 1 1 1 19 19 19 17,737 17,737 17,737
Advanced Info Service Public Company Limited
- 53 -- 53 -
10,525 10,525 10,525 3,6113,611 3,611 56 56 56 166 166 166 14,358 14,358 14,358
Unit:Unit: Million Million Baht Million BahtBaht Unit:Unit: Million Baht Separate Separate Separate financial financial statements statements financial financial statements statements 20162016 20152015 2015 2016 2015 222 222 222 15 15 15 1 1 1 - 19 19 19 257 257 257
372 372 372 108 108 108 58 58 58 5 5 - 5543 543 543
ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED NOTES TO THE THE FINANCIAL STATEMENTS NOTES TO STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES 31, 31, 2016 2016 LIMITED AND ITS SUBSIDIARIES FOR THE YEAR ENDED DECEMBER FOR THE YEAR ENDED DECEMBER ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY NOTES TO THE STATEMENTS 31, 2016 FOR THE ENDED DECEMBER NOTES TOYEAR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER SPECTRUM LICENSES LICENSES PAYABLE PAYABLE31, 2016 19. 19. SPECTRUM
19. SPECTRUM LICENSES PAYABLE
19. SPECTRUM LICENSES PAYABLE Spectrum licenses licenses payable payable as as at at December December 31, 31, are are as as follows: follows: Spectrum 19. SPECTRUM LICENSES PAYABLE Spectrum licenses payable as at December 31, are as follows: Spectrum licenses payable as at December 31, are as follows:
Unit: Million Baht
Consolidated Unit: Million Million Baht Baht Unit: financial statements Consolidated Consolidated Unit: Million Baht financial statements statements financial 2016 2015 Consolidated Unit: Million 2016 2015 Baht 2016 2015
financial statements Consolidated Spectrum licenses licenses payable payable Spectrum 2016 2015 financial statements License certificate certificate no. no. NBTC/FREQ/TEL/55/1 NBTC/FREQ/TEL/55/1 License Spectrum licenses payable 2016 2015 (Addendum no.1) no.1) (Addendum 19,790 19,902 19,790 19,902 License certificate no. NBTC/FREQ/TEL/55/1 Spectrum licensesno. payable License certificate certificate no. NBTC/FREQ/TEL/55/1 License NBTC/FREQ/TEL/55/1 (Addendum no.1)no. NBTC/FREQ/TEL/55/1 19,790 19,902 License certificate (Addendum no.2) (Addendum no.2) 62,407 62,407 -License certificate (Addendum no.1)no. NBTC/FREQ/TEL/55/1 19,790 19,902 82,197 19,902 82,197 19,902 (Addendum no.2) NBTC/FREQ/TEL/55/1 62,407 License certificate Less current current portionno. of spectrum spectrum licenses licenses payable payable Less portion of (10,017) (10,017) -82,197 (Addendum no.2)payable 62,407 - 19,902 Spectrum licenses payable Spectrum licenses 72,180 19,902 72,180 19,902 Less current portion of spectrum licenses payable (10,017) - 19,902 82,197 Spectrum licenses 72,180 Less current portionpayable of spectrum licenses payable (10,017) - 19,902 Movements Movements in in spectrum spectrum licenses payable payable for for the the years years ended ended December December 31, 31, are are as as follows: follows: Spectrum licenses payablelicenses 72,180 19,902 Unit: Million Baht financial financial statements statements Consolidated Consolidated Unit: Million 2016 2016 2015 2015 Baht financial statements financial statements Consolidated 2016 2015 2016 2015 financial 19,902 19,902 statements 3,656 3,656 2016 2015 69,113 69,113 40,346 40,346 19,902 3,656 (8,040) (8,040) (24,149) (24,149) 69,113 40,346 19,902 3,656 1,222 1,222 49 49 (8,040) (24,149) 69,113 40,346 82,197 82,197 19,902 19,902 1,222 49 (8,040) (24,149) 82,197 19,902 1,222 49 82,197 19,902
As As at at January January 1, 1, Addition Addition As at January 1, Payments Payments Addition As at Januaryof 1, deferred Amortization Amortization of deferred interest interest expense expense Payments Addition As As at at December December 31, 31, Amortization of deferred interest expense Payments As at December 31, Amortization of deferred interest expense As at December 31, EMPLOYEE BENEFIT BENEFIT OBLIGATIONS OBLIGATIONS EMPLOYEE
20. 20. 20. EMPLOYEE EMPLOYEE BENEFIT BENEFIT OBLIGATIONS OBLIGATIONS 20. The The Group Group and and the the Company Company have have an an employee employee benefit benefit obligation obligation based based on on the the requirement requirement 20. EMPLOYEE BENEFIT OBLIGATIONS of of Thai Thai Labour Labour Protection Act Acthave B.E. B.E. an 2541 2541 (1998) (1998) to to provide provide retirement retirement benefits benefits torequirement employees employees The Group and Protection the Company employee benefit obligation based on theto based based on on pensionable pensionable remuneration remuneration and and length length of of service service and and long long term term service service awards. awards. of Thai Labour Acthave B.E. an 2541 (1998) benefit to provide retirement benefits employees The Group and Protection the Company employee obligation based on thetorequirement based pensionable remuneration length of service andretirement long - termbenefits service to awards. of ThaionLabour Protection Act B.E.and 2541 (1998) to provide employees The The defined defined benefit benefit plans plans expose expose the the Group Group and and the the Company Company to to actuarial actuarial risks, risks, such such as as based on pensionable remuneration and length of service and long - term service awards. longevity longevity risk, risk, currency currency risk, risk, interest interest rate risk risk and and and market market (investment) (investment) risk. risk. risks, such as Company to actuarial The defined benefit plans expose therate Group the longevity risk, currency risk, interest risk and and the market (investment) risk. risks, such as The defined benefit plans expose therate Group Company to actuarial Obligations Obligations under under the the statements statements of of financial financial position position as as at at December December 31, 31, are are as as follows: follows: longevity risk, currency risk, interest rate risk and market (investment) risk. Obligations under the statements of financial position as at December 31, are as follows: Unit: Million Million Baht Baht Unit: Obligations under the statements of financial position as at December 31, are as follows: Consolidated Separate Consolidated Separate financial statements statements financial Consolidated 2016 2016 2015 2015 financial statements Consolidated Consolidated financial statements financial statements 2016 2015 2,555 2,294 2,555 2,294 2016 2015 2016 2015 2,555 2,294 2,555 2,294
Present value value of of obligations obligations Present Present value of obligations Present value of obligations
Unit: Million Baht financial statements statements financial Unit: MillionBaht Baht Separate Unit: Million 2016 2016 2015 2015 financial statements Separate financial statements financial 2016 2015 327 431 327 431 2016 2015 2016 2015 327 431 327 431
Annual Report 2016
-- 54 54 --
176
FINANCIAL REPORT
Movements in spectrum licenses payable for the years ended December 31, are as follows: Unit: Unit: Million Million Baht Baht Movements in spectrum licenses payable for the years ended December 31, areUnit: as Million follows: Baht Consolidated Consolidated
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC PUBLIC COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED INFO SERVICE COMPANY NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS NOTES TOYEAR THE FINANCIAL STATEMENTS 31, 2016 FOR THE ENDED DECEMBER FOR THE YEAR ENDED DECEMBER 31, 2016 LIMITED AND ITS SUBSIDIARIES FOR THE YEAR ENDED DECEMBER ADVANCED INFO SERVICE PUBLIC COMPANY NOTES TO THE FINANCIAL STATEMENTS Movements in the present value of the employee benefit obligations for the years 2016 FOR THE YEAR ENDED DECEMBER Movements in the present value 31, of the employee benefit obligations for the years
ended ended December 31, are as follows: December 31, are as follows: Millionended Baht Movements in the present value of the employee benefit obligations forUnit: the years Unit: Million Baht Unit: Million Separate Consolidated Unit: Million Baht Baht December 31, are as follows: Consolidated Separate Separate Consolidated financial statements financial statements Employee benefit obligations as at January 1, Employee benefit obligations as Current service costs and interest Employee benefit obligations as at at January January 1, 1, Current service costs and interest Benefitsservice paid costs and interest Current Benefits Transfer paid employee to subsidiaries Benefits Employeepaid benefit obligations as at January 1, Transfer employee to subsidiaries Transfer employee to and subsidiaries Actuarial (gains)costs losses from employee benefit Current service interest Actuarial (gains) losses from employee obligations Actuarialpaid (gains) losses from employee benefit benefit Benefits obligations obligations Employee benefit obligations as at December 31, Transfer employee to subsidiaries Employee benefit obligations as at December 31, Employee benefit obligations as at December Actuarial (gains) losses from employee benefit31,
Consolidated financial statements financial statements 2016 2015 financial statements 2016 2015 2016 2015 2016 2015 Consolidated 2,294 1,500 financial statements 2,294 1,500 293 172 2,294 1,500 2016293 2015 172 (32) (15) 293 172 - (32) - (15) (32) (15) 2,294 1,500 --293 172 - (32) 637 (15) -637 2,555 2,294 - 637 2,555 2,294 2,555 2,294
FINANCAIL REPORT
Expense recognized in the statement of profit or- loss for the 637 years obligations Expense recognized in the statement of profit or loss for the years are as follows: Employee benefit obligations as at December 31, 2,555 2,294 are as follows: Expense recognized in the statement of profit or loss for the years Consolidated are as follows: Consolidated financial statements
Separate financial financial statements 2016 statements 2015 financial statements Unit: Million Baht 2016 2016 2015 2016Separate2015 2015 431 406 financial statements 431 406 38 51 431 406 201638 201551 (29) (4) 38 51 (29) (4) (113) (8) (29) (4) 431 406 (113) (8) (113) (8) 38 51 - (29) (14) (4) --327 (14) (14) 431 (113) (8) 327 431 327 431
ended 31, - December(14) ended327 December431 31, Unit: Million Baht ended December Unit: Million 31, Baht
Unit: Million Baht Baht Separate Unit: Million Separate financial statements Consolidated Separate Consolidated Separate financial financial statements 2016 statements 2016 statements 2015 2015 financial statements financial statements financial financial Unit: Million Baht 2016 2016 2015 2015 2016 2016 2015 2015 Consolidated Separate 2016 2015 2016 2015 Current service costs 214 114 28 35 financial statements financial statements Current on service costs 214 114 28 35 Interest obligations 79 58 10 16 Current service costs 214 114 28 35 201679 201610 201558 201516 Interest on on obligations obligations Total 293 172 38 51 Interest 79 58 10 16 Total 293 172 38 51 Total 293 172 38 51 Current service costs 214 114 28 35 The Group and the Company recognized the expense in the following line items in the Interest on obligations 79 58 10 16 The Group and the Company recognized the expense in the following line items in the statement of profit or loss for the years ended December as follows: 38 Total 293 31, are172 51
statement of profit or loss for the years ended December 31, are as follows: MillioninBaht The Group and the Company recognized the expense in the following Unit: line items the Unit: Million Baht Baht Consolidated Separate Unit: Million statement of profit or loss for the years ended December 31, are as follows: Consolidated Separate financial statements financial statements Cost of rendering of services and Cost of rendering rendering of services services and and equipment rentalof Cost of equipment rental rental Administrative expenses equipment Administrative expenses Management benefit expenses Administrative expenses Cost of rendering of services Management benefit expensesand Finance costs benefit Management expenses equipment rental Finance costs Total costs Finance Administrative expenses Total Total Management benefit expenses Finance costs Total
177
Advanced Info Service Public Company Limited
Consolidated financial statements 2016 2015 financial statements 2016Consolidated 2015 2016 2015 financial statements Consolidated 20 9 financial 20 statements 193 104 2016 2015 20 99 2016 193 2015 104 1 1 193 104 79 58 11 11 20 9 79 58 293 172 79 58 193 104 293 172 293 172 1 1 79 293
58 172
Separate Unit: Million Baht financial statements 2016 statements 2015 financial Unit: Million Baht Separate 2016 2015 2016 2015 financial statements Separate financial statements 2016 2015 -- 27 -- 34 201627 201534 1 1 27 34 10 16 11 11 - 10 - 16 38 51 10 16 27 34 38 51 38 51 1 1 10 38
16 51
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED NOTES TO THE STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31, 2016 FOR THE YEAR ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS 31, 2016 LIMITED FOR THE YEAR DECEMBER ADVANCED INFOENDED SERVICE PUBLIC COMPANY FOR THE YEAR ENDED DECEMBER 31, 2016 NOTES TO THE FINANCIAL STATEMENTS Actuarial from 31, employee 2016 benefit FOR THE YEAR (gains) ENDED losses DECEMBER Actuarial (gains) losses from employee benefit
AND ITS SUBSIDIARIES AND ITS SUBSIDIARIES AND ITS SUBSIDIARIES AND ITS SUBSIDIARIES
obligations recognized in other obligations recognized in other comprehensive income in the statement of profit or loss and other comprehensive income Actuarial (gains) losses from employee benefit recognized inincome other comprehensive income in the statement of profit or lossobligations and other comprehensive for the years ended December 31, are as of follows: comprehensive income in the statement profit or loss and other comprehensive income for the years(gains) ended December 31, are as follows: Actuarial losses from employee benefit obligations recognizedUnit:inMillion other Baht for the years ended December 31, are as follows: comprehensive income in the statement of profit or loss and other comprehensive income Unit: Million Baht Unit: Million Baht Consolidated Separate Separate Consolidated for the years ended December 31, are as follows:financial Unit: Million Baht statements financial statements Separate Consolidated Included in retained earnings : Included At Januaryin1,retained earnings : Included retained earnings : At Januaryin1,during Recognized the year At January 1,during the year Recognized As at December 31, Included in during retained earnings : Recognized As at December 31,the year At January 1, As at December 31, Recognized (gains) during thelosses year Actuarial recognized in Actuarial (gains) losses recognized in As at December 31, comprehensive income for the years ended
financial statements financial statements Separate Consolidated financial statements financial statements 2016 2015 2016 2015 2016 2015 2016 2015 Unit: Million Baht financial statements financial statements 2016 2015 2016 2015 Consolidated Separate 2016 2015 2016 2015 1,360 statements 723 403 statements 417 financial financial 1,360 723 403 417 637 (14) 2016 2015 2016 2015 1,360 723 403 417 637 (14) 1,360 1,360 403 403 637 - 403 (14) 1,360 1,360 403 1,360 723 403 417 1,360 1,360 403 403 (14) the statement of 637 profit or- loss and other the statement of1,360 profit or 403 loss and 403 other 1,360 December 31, are arising from:
Actuarial (gains) losses recognized in December the statement ofarising profit from: or loss and other comprehensive income for the years ended 31, are comprehensive income for the years ended December 31, are arising from: Actuarial (gains) losses recognized in the statement of profit or Unit: loss Million and other Baht
Unit: Million Baht Consolidated Separate comprehensive income for the years ended December 31, are arising from: Unit: Million Baht Unit: Million Baht
at the end of at the end of Principal actuarial assumptions at the end of the reporting period (expressed as weighted averages): averages): Principal actuarial assumptions at the end of the reporting period (expressed as weighted Consolidated Separate Consolidated Separate financial statements financial statements averages): Consolidated Separate financial statements 2016 2015 financial statements 2016 2015 Consolidated Consolidated 2016 2015 Discount rate 3.5% statements 3.5% financial financial statements Discount rate 3.5% 3.5% Future salary increases 9% 9% 2016 2015 Discount rate increases 2016 2015 3.5% 3.5% Future salary 9% 9% Future salary increases 9% 9% Discount rate regarding future mortality are based Assumptions 3.5%on published 3.5% Assumptions regarding future mortality are based on published Future salary increases 9% Mortality Ordinary Life table 2008 (“TMO08”). 9%
financial statements 2016 2015 financial statements 2016 2015 Separate Separate 2016 2015 3.5% statements 3.5% financial financial statements 3.5% 3.5% 9% 9% 2016 2015 2016 2015 3.5% 3.5% 9% 9% 9% 9% statistics 3.5% and Thailand 3.5% statistics 9% and Thailand 9%
Assumptions regarding future2008 mortality are based on published statistics and Thailand Mortality Ordinary Life table (“TMO08”). Mortality Ordinary Life table (“TMO08”). Assumptions regarding future2008 mortality are based on published statistics and Thailand Mortality Ordinary Life table 2008 (“TMO08”).
Annual Report 2016
178
FINANCIAL REPORT
Financial assumptions Financial assumptions Demographic assumptions Financial assumptions Demographic assumptions Experience adjustment Demographic assumptions Experience adjustment Total Financial assumptions Experience adjustment Total Demographic assumptions Total Experienceactuarial adjustmentassumptions Principal Principal actuarial assumptions Total averages):
Consolidated Separate financial statements financial statements Consolidated Separate Consolidated Separate financial statements financial statements 2016 2015 2016 2015 Unit: Million Baht financial financial financial statements financial statements 2016 statements 2015 2016 statements 2015 Consolidated Separate 2016 2015 2016 2015 2016 2015 2016 2015 439 64 financial statements financial statements -439 64 (23) (12) 2016 2015 2016 2015 439 64 -(23) (12) 221 (66) (23) (12) -221 (66) 637 (14) 439 64 221 (66) 637 (14) (23) (12) 637 (14) 221 (expressed (66) the reporting period as weighted the reporting period as weighted 637 (expressed (14)
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016
Sensitivity analysis Sensitivity analysis Reasonably possible changes at the end of the reporting period to one of the relevant Reasonably possible changes the end of the reporting period to one of affected the relevant actuarial assumptions, holdingat other assumptions constant, would have the actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligations as at December 31, by the amounts shown below. defined benefit obligations as at December 31, by the amounts shown below.
Consolidated financial Consolidated financial statements financial 2016 statements 2015 2016 2015 2016 (375) (375) 459 459 427 427 (359) (359)
FINANCAIL REPORT
Discount rate Discount - Increaserate 1% - Increase Decrease1% 1% -Future Decrease 1%growth salary Future salary - Increase 1%growth - Increase 1% Decrease 1% - Decrease 1%
2015 (338) (338) 414 414 385 385 (323) (323)
Unit: Million Baht
Unit: Million Baht Separate Unit: Million Baht financial statements Separate financial statements financial 2016 2015 2016 statements 2015 2016 2015 (51) (49) (51) (49) 61 58 61 58 57 54 57 54 (49) (47) (49) (47)
Although the analysis does not take account of the full distribution of cash flows expected Although the analysis does notantake account of of thethe full distribution of assumptions cash flows expected under the plan, it does provide approximation sensitivity of the shown. under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
21.
SHARE CAPITAL
21. SHARE SHARE CAPITAL CAPITAL 21.
Movements of share capital for the years ended December 31, are as follows: Movements of share capital for the years ended December 31, are as follows:
Authorized Authorized As at January 1, As at January 1, - ordinary shares -As ordinary shares at December 31, As at December - ordinary shares31, - ordinary shares
Par value Par value per share Par value per share (inper Baht) share (in(in Baht) Baht)
Issued and paid-up Issued and paid-up As at January 1, As at January 1, - ordinary shares -As ordinary shares at December 31, As at December - ordinary shares31, - ordinary shares
1.00 1.00
1.00 1.00
1.00 1.00
1.00 1.00
2016 2016 Number 2016 Number ofNumber share Amount ofofshare Amount share Amount
(Million (Million shares/million Baht) shares/million Baht) (Million shares/million Baht) 2015 2015 Number 2015 Number of share Amount Number of Amount of share share Amount
4,997 4,997
4,997 4,997
4,997 4,997
4,997 4,997
2,973 2,973
2,973 2,973
2,973 2,973
2,973 2,973
4,997 4,997
2,973 2,973
4,997 4,997
2,973 2,973
4,997 4,997
2,973 2,973
4,997 4,997
2,973 2,973
As at December 31, 2016 and 2015, the total issued number of ordinary shares is 2,973 As at December 31,a 2016 and of 2015, total of shares ordinary is 2,973 million shares with par value Bahtthe 1.00 perissued share. number All issued areshares fully paid. million shares with a par value of Baht 1.00 per share. All issued shares are fully paid. The holders of ordinary shares are entitled to receive dividends as declared from time to The ordinary shares receive dividends as declared from time to time,holders and areof entitled to one voteare perentitled share attomeetings of the Company. time, and are entitled to one vote per share at meetings of the Company.
179
Advanced Info Service Public Company Limited
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Share Share premium According to the Public Companies Act B.E. 2535, Section 51 requires companies to set aside share subscription monies received in excess of the par value of the shares issued to a reserve account (“share premium”). Share premium is not available for dividend distribution.
22. LEGAL RESERVE 22. LEGAL RESERVE According to the Public Companies Act B.E. 2535, section 116 requires that a public company shall allocate not less than 5% of its annual net profit, less any accumulated losses brought forward (if any), to a reserve account (“legal reserve”), until this account reaches an amount not less than 10% of the registered authorized capital. The legal reserve is not available for dividend distribution.
23. 23. OTHER COMPONENTS COMPONENTS OF EQUITY Share-based payment payment Share-based The performance performance share The shareplan plan
FINANCIAL REPORT
Grant I In March 2013, the Annual General Meeting of shareholders No.1/2013 approved to issue warrants to purchase the ordinary shares of the Company. The warrants are offered to employees of the Company and its subsidiaries, including the board of directors of the Company, who are qualified to the Performance share plan (“ESOP-Grant I”). The major information is listed below: Approved date: Number of warrants offered: Exercise price: Number of reserved shares: Term of the Project: Offered price per unit: Exercise ratio:
March 27, 2013 405,800 Units 206.672 Baht/share 405,800 Shares 5 years from the date of initial offer of the warrants Baht 0 (zero Baht) 1 unit of warrant per 1 ordinary share
Annual Report 2016
180
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Grant II In March 2014, the Annual General Meeting of shareholders No.1/2014 approved to issue warrants to purchase the ordinary shares of the Company. The warrants are offered to employees of the Company and its subsidiaries, including the board of directors of the Company, who are qualified to the Performance share plan (“ESOP-Grant II”). The major information is listed below: Approved date: Number of warrants offered: Exercise price: Number of reserved shares: Term of the Project: Offered price per unit: Exercise ratio:
March 26, 2014 680,000 Units 211.816 Baht/share 680,000 Shares 5 years from the date of initial offer of the warrants Baht 0 (zero Baht) 1 unit of warrant per 1 ordinary share
Grant III
FINANCAIL REPORT
In March 2015, the Annual General Meeting of shareholders No.1/2015 approved to issue warrants to purchase the ordinary shares of the Company. The warrants are offered to employees of the Company and its subsidiaries, including the board of directors of the Company, who are qualified to the Performance share plan (“ESOP-Grant III”). The major information is listed below: Approved date: Number of warrants offered: Exercise price: Number of reserved shares: Term of the Project: Offered price per unit: Exercise ratio: Offer period:
181
Advanced Info Service Public Company Limited
March 24, 2015 872,200 Units 249.938 Baht/share 872,200 Shares 5 years from the date of initial offer of the warrants Baht 0 (zero Baht) 1 unit of warrant per 1 ordinary share Within one year from the date on which the issuance and offer of the warrant under the program is approved by the 2015 Annual General Meeting of shareholders
ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31, 2016 2016 FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31, FOR
Grant IV IV Grant In March March 2016, 2016, the the Annual Annual General General Meeting Meeting of of shareholders shareholders No.1/2016 No.1/2016 approved approved to to issue issue In warrants to purchase the ordinary shares of the Company. The warrants are offered to warrants to purchase the ordinary shares of the Company. The warrants are offered to employees of of the the Company Company and and its its subsidiaries, subsidiaries, including including the the board board of of directors directors of of the the employees Company, who are qualified to the Performance share plan (“ESOP-Grant IV”). The major Company, who are qualified to the Performance share plan (“ESOP-Grant IV”). The major information isis listed listed below: below: information Approved date: date: Approved Number of of warrants warrants offered: offered: Number Exercise price: Exercise price: Number of of reserved reserved shares: shares: Number Term of the Project: Term of the Project: Offered price price per per unit: unit: Offered Exercise ratio: Exercise ratio: Offer period: period: Offer
Movements in in the the number number of of outstanding outstanding warrants warrants are are as as follows: follows: Movements
ESOP -- Grant Grant II ESOP Directors - Directors Employees --Employees ESOP -- Grant Grant II II ESOP Directors --Directors Employees - Employees ESOP -- Grant Grant III III ESOP Directors --Directors Employees - Employees ESOP -- Grant Grant IV IV ESOP Directors - Directors Employees --Employees Total Total
As at As As atat January January January 1,1,1, 2016 2016 2016 (in units) units) (in
Transaction during during the year Transaction year Transaction during thetheyear
As As Asat atat December 31, December 31, December 31, Issued Exercised Forfeited Returned 2016 Issued Exercised Forfeited Forfeited Returned Returned 2016 Issued Exercised 2016 (in units) (in units) (in units) (in units) (in units) (in units) (in units) (in units) (in units) (in units) (in units)
19,824 19,824 352,476 352,476 372,300 372,300
----
----
29,816 29,816 611,768 611,768 641,584 641,584
----
----
-(33,636) (33,636) (33,636) (33,636)
----
29,816 29,816 578,132 578,132 607,948 607,948
51,600 51,600 725,716 725,716 777,316 777,316
----
----
-(39,366) (39,366) (39,366) (39,366)
----
51,600 51,600 686,350 686,350 737,950 737,950
-----
-(5,200) (5,200) (5,200) (5,200) (78,202) (78,202)
---1,791,200 1,791,200
56,800 56,800 653,900 653,900 710,700 710,700 710,700 710,700
----
(19,824) (19,824) (352,476) (352,476) (372,300) (372,300)
---(372,300) (372,300)
----
56,800 56,800 648,700 648,700 705,500 705,500 2,051,398 2,051,398
Annual Report 2016
182
FINANCIAL REPORT
March 29, 29, 2016 2016 March 826,900 Units Units 826,900 166.588 Baht/share 166.588 Baht/share 826,900 Shares Shares 826,900 5 years from the date date of of initial initial offer offer of of the the warrants warrants 5 years from the Baht 00 (zero (zero Baht) Baht) Baht 1 unit of warrant per 11 ordinary ordinary share share 1 unit of warrant per Within one one year year from from the the date date on on which which the the issuance issuance Within and offer of the warrant under the program is approved and offer of the warrant under the program is approved by the the 2016 2016 Annual Annual General General Meeting Meeting of of shareholders shareholders by
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Fair value measurement The Group and the Company measured the expense of the Project by reference to the fair value of the equity instrument granted at the grant date using the Monte Carlo Simulation technique. The major assumptions are as below: Grant I Weighted average fair value at the grant date Share price at the grant date Exercise price Expected volatility Expected dividend Risk-free interest rate
183.499 Baht/share 262.000 Baht/share 206.672 Baht/share 23.51% 4.16% 3.07%
Grant II
FINANCAIL REPORT
Weighted average fair value at the grant date Share price at the grant date Exercise price Expected volatility Expected dividend Risk-free interest rate
101.617 Baht/share 240.000 Baht/share 211.816 Baht/share 25.15% 5.00% 3.08%
Grant III Weighted average fair value at the grant date Share price at the grant date Exercise price Expected volatility Expected dividend Risk-free interest rate
82.907 Baht/share 236.000 Baht/share 249.938 Baht/share 22.99% 5.28% 2.34%
Grant IV Weighted average fair value at the grant date Share price at the grant date Exercise price Expected volatility Expected dividend Risk-free interest rate
67.742 Baht/share 165.000 Baht/share 166.588 Baht/share 27.70% 8.48% 1.72%
For the year ended December 31, 2016, the Group and the Company recognized sharebased payment expense at Baht 35 million and Baht 35 million, respectively, in the consolidated and separate financial statements (For the year ended December 31, 2015: Baht 31 million and Baht 31 million, respectively).
183
Advanced Info Service Public Company Limited
- 61 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Unrealized gain on dilution of investment The unrealized gain on dilution of investment comprises the cumulative net change in portion of investment until the investment is sold or otherwise disposed. Fair value changes in available-for-sale investments The fair value changes in available-for-sale investments account within equity comprises the cumulative net change in the fair value of available-for-sale investments until the investments are derecognized or impaired.
24. SEGMENT FINANCIAL FINANCIAL INFORMATION 24. SEGMENT INFORMATION
Segment 1 Segment 2 Segment 3
Mobile phone and call center services Mobile phone sales Datanet and broadband services
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Group’s CEO. Segment profit before tax is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.
Information Informationabout aboutreportable reportablesegments segments Performance for the years ended December 31, are as follows:
External revenue
Mobile phone sales sales 2016 2015
2016
2015
126,046
23,947
27,827
Investment income 184 Finance costs (4,233) Depreciation and amortization (20,950) Material items of expenses (23,011) Segment profit (loss) before income tax expense
Mobile phone
Mobile phone and Mobile phone and call center services call center services 2016 2015 2016 2015
39,354
126,435
Unit: Million Baht
Datanet and Datanetservices and broadband broadband services 2016 2015 2016 2015 2,157
1,014
Unit: Million Baht Total reportable Total segments reportable segments 2016 2015
2016
2015
152,150
155,276
268 (1,958) (20,291) (15,064)
18 (2) (6) (2,691)
14 (2) (7) (1,119)
2 (1) (711) (30)
9 (197) (111)
204 (4,236) (21,667) (25,732)
291 (1,960) (20,495) (16,294)
51,185
(3,694)
(1,476)
205
(555)
35,865
49,154
Annual Report 2016
184
FINANCIAL REPORT
The Group has three reportable segments, as described below, which are the Group’s strategic divisions. The strategic divisions offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic divisions, the Chief Executive Officer (CEO) reviews internal management reports on at least a quarterly basis. The following summary describes the operations in each of the Group and the Company’s reportable segments.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE STATEMENTS ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES FOR THE YEAR ENDED DECEMBER 31, 2016 31, 2016 FOR THE YEAR ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 Reportable assets and liabilities as at December 31, are as follows: Reportable assets and liabilities as at December 31, are as follows: Reportable assets and liabilities as at December 31, are as follows: Mobile phone and Mobile phone and call center services call center services Mobile phone and 2016 2015 2016 2015 call center services
Segment assets Segment assets Segment liabilities Segment Segment liabilities assets Segment liabilities The significant
Mobile phone and call center services 2016 2015 2016 2015
262,117 262,117 222,805 222,805 262,117 222,805of amount
170,199 170,199 127,207 127,207 170,199 127,207 additions to
Mobile phone Mobile phone sales sales Mobile phone 2016 2015 2016 sales 2015
Mobile phone sales 2016 2015 2015 2016
7,375 7,375 4,932 4,932 7,375 4,932 non-current
9,892 9,892 4,758 4,758 9,892 4,758 assets
Datanet and Datanet and broadband services broadband Datanet services and 2016 2015 2016 2015 broadband services
Datanet and broadband services 2016 2015 2016 2015 6,178 6,178 5,225 5,225 6,178 5,225 the years
1,670 1,670 1,303 1,303 1,670 1,303 ended
Unit: Million Baht Unit: Million Baht Total Total Unit: Million Baht reportable segments reportable segments 2016 Total 2015 2016 2015 reportable segments
Unit: Million Baht Total reportable segments 2016 2015 2016 2015
275,670 275,670 232,962 232,962 275,670 232,962 December
181,761 181,761 133,268 133,268 181,761 133,268 are as
for 31, The significant amount of additions to non-current assets for the years ended December 31, are as follows: follows: The significant amount of additions to non-current assets for the years ended December 31, are as follows: Unit:Million MillionBaht Baht Unit: Mobile phone and Mobile phone and call center services call center services Mobile phone and 2016 2015 2016 2015 call center services
Mobile phone and call center services 2016 2015
Capital expenditure Capital expenditure
Capital expenditure 117,087 Geographical segments Geographical Geographicalsegments segments
FINANCAIL REPORT
2016 117,087 117,087
2015 73,816 73,816 73,816
Mobile phone Mobile phone sales sales Mobile phone 2016 2015 2016 sales 2015
Mobile phone sales 2016 2015
2016 1 1
2015 4 4
1
4
Datanet and Datanet and broadband services broadband Datanet services and 2016 2015 2016 2015 broadband services
Datanet and broadband services 2016 2015
Unit: Million Baht
Total Total reportable Total Unit: Million Baht reportable segments segments reportable segments 2016 Total 2015 2016 2015 2016 segments 2015 reportable
2016 3,104 3,104
2015 1,684 1,684
2016 120,192 120,192
2015 75,504 75,504
3,104
1,684
120,192
75,504
Geographical The Group andsegments the Company manage and operate principally in Thailand. There are no The Group and the Company manage and operate principally in Thailand. There are no material revenues derived from or assets located in foreign countries. material revenues derived frommanage or assetsand located in foreign countries. The Group and the Company operate principally in Thailand. There are no material revenues derived from or assets located in foreign countries. MajorCustomer Customer Major Major Customer Major Customer No single customer represents a major customer because the Group and the Company have No single customer represents a major customer because the Group and the Company have large number of customers, who are end users covering business and individuals. large number of customers, who are endcustomer users covering andand individuals. No single customer represents a major becausebusiness the Group the Company have large number of customers, who are end users covering business and individuals.
SERVICES NBTC’S REGULATION REGULATION 25. REVENUE FROM RENDERING OF SERVICES 25. THE NBTC’S UNDER THE NBTC’S REGULATION 25. REVENUE FROM RENDERING OF SERVICES UNDER
REVENUEfrom FROM RENDERING OF SERVICES UNDER THEofNBTC’S REGULATION 25. Revenue rendering of services and equipment rentals the Company for the years Revenue from rendering of services and equipment rentals of the Company for the years ended December 31, are classified as follows: ended December 31, are classified as and follows: Revenue from rendering of services equipment rentals of the Company for the years Unit: Million Baht ended December 31, are classified as follows: Unit: Million Baht Unit: Million Baht Separate Separate Separate Unit: Million Baht financial statements financial financial statements Separate 2016 2015 2016 2015 2016 2015 financial statements 2016 2015 1 1 4,950 31,530 4,950 31,530 - 4,950 31,5311 4,950 31,531 4,950 31,530 4,950 31,531
Internet License Type 1 Internet License Type 1 Other service income Other service income Internet License Type 1 Total Total Other service income Total
185
Advanced Info Service Public Company Limited
- 63 - 63 - 63 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS ADVANCED ADVANCED INFO INFOFINANCIAL SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES 31, 2016 FOR THE YEAR ENDED DECEMBER NOTES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS 31, 2016 2016 FOR FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31,
26. INVESTMENT INCOME INVESTMENT INVESTMENT INCOME INCOME 26. 26. 26. INVESTMENT INCOME Investment income for the years ended December 31, are as follows: Investment Investment income income for for the the years years ended ended December December 31, 31, are are as as follows: follows: Notes
Dividend income Subsidiaries Dividendincome income Dividend Other Subsidiaries Subsidiaries Other Other Interest income Subsidiaries Interest income Interest income Associate Subsidiaries Subsidiaries Financial Associate institutions Associate Financialinstitutions institutions Financial Total Total Total
10, 34 10, 34 34 10, 34 34 34 34 34 34
--------- 204 204 204 204 204 204 204 204 204
-- 40 40 40 40 40 40 -- 2 249 22 251 249 249 291 251 251 291 291
Unit: Million Baht Unit: Million Baht Separate Unit: Unit: Million Million Baht Baht financial statements Separate Separate Separate 2016 2015 statements financial statements financial statements 2016 2015 2016 2015 2016 2015 28,009 28,009 28,009 28,009 -28,009 28,009 1,508 -1,508 1,508 -- 23 1,531 23 23 29,540 1,531 1,531 29,540 29,540
36,725 20 36,725 36,725 36,745 20 20 36,745 36,745 1,520 1,520 1,520 -- 49 1,569 49 49 38,314 1,569 1,569 38,314 38,314
OTHER OPERATING INCOME
27. INCOME 27. 27. OTHER OTHER OPERATING OPERATING OPERATING INCOME
Investment income for the years ended December 31, are as follows: Investment Investment income income for for the the years years ended ended December December 31, 31, are are as as follows: follows:
Notes Notes Bad debt recovery Management income Bad Bad debt debt recovery recovery Others Management Management income income Total Others Others Total Total
Notes Notes 34 34 34 34 34
Consolidated Consolidated financial statements Consolidated Consolidated financial statements 2016 2015 financial financial statements 2016 statements 2015 2016 2016 2015 2015 112 111 -112 112 111 111 --252 -- 337 364 448 252 252 337 337 364 364 448 448
Unit: Million Baht Unit: Million Baht Separate Unit: Unit: Million Million Baht Baht Separate financial statements Separate Separate financial statements 2016 2015 financial financial statements statements 2016 2015 2016 2016 2015 2015 34 33 1,542 209 34 34 33 33 87 267 1,542 1,542 209 209 1,663 509 87 87 267 267 1,663 1,663 509 509
28. 28. PROVIDENT PROVIDENT FUND FUND
28. 28. PROVIDENT PROVIDENT FUND FUND The defined contribution plans comprise provident fund established by the Group and the Company for its employees. Membership to fund the is on by abyvoluntary The The defined defined contribution contribution plans plans comprise comprise provident provident fundfund established established the the Group Groupbasis. and and Contributions monthly byMembership the employees ranging 3% to 15% of the the Company Company are for for made its its employees. employees. Membership to to at the therates fund fund isis on on from aa voluntary voluntary basis. basis. their basic salaries and by the Group andemployees the Company at rates ranging from 3% 7% of Contributions Contributions are are made made monthly monthly by by the the employees at at rates rates ranging ranging from from 3% 3% to toto 15% 15% of the employees’ basic salaries. The and provident fund isat withfrom the3% Ministry of their their basic basic salaries salaries and and by by the the Group Group and the the Company Company atregistered rates rates ranging ranging from 3% to to 7% 7% of Finance as juristic entities and isThe managed by a licensed Manager. the the employees’ employees’ basic basic salaries. salaries. The provident provident fund fund isis Fund registered registered with with the the Ministry Ministry of of Finance Finance as as juristic juristic entities entities and and isis managed managed by by aa licensed licensed Fund Fund Manager. Manager.
- 64 -- 64 64 --
Annual Report 2016
186
FINANCIAL REPORT
27.
Notes Notes Notes
Consolidated financial statements Consolidated Consolidated Consolidated 2016 2015 statements financial financial statements statements 2016 2015 2016 2015 2016 2015
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITSITS SUBSIDIARIES SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTES NOTES TOTO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 31,31,2016 2016 FOR FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER
29. EXPENSES EXPENSES BY NATURES 29. BY NATURES 29.29. EXPENSES EXPENSES BYBY NATURES NATURES The statements of profit or loss for the years ended December 31, include an analysis of The The statements statements of of profit profit or or loss loss forfor thethe years years ended ended December December 31,31, include include anan analysis analysis of of expenses by function. Significant expenses by nature disclosed in accordance with the expenses expenses byby function. function. Significant Significant expenses expenses byby nature nature disclosed disclosed in in accordance accordance with with thethe requirements of various Thai Financial Reporting Standards are as follows: requirements requirements of of various various Thai Thai Financial Financial Reporting Reporting Standards Standards areare as as follows: follows: Unit: Million Baht
Consolidated
Consolidated financial statements Consolidated Consolidated financial statements 2016 statements 2015 financial financial 2016 statements 2015 2016 2016 2015 2015
FINANCAIL REPORT
Notes
Notes Notes Notes Depreciation of buildings and Depreciation Depreciation of buildings of buildings and and equipment 11 equipment equipmentand amortization of 11 11 Depreciation Depreciation Depreciation andand amortization amortization offorof assets under Agreements assets assets under under Agreements Agreements for for operations 12 operations operations Amortization of spectrum licenses 12 12 14 Amortization Amortization of spectrum of intangible spectrum licenses licenses 14 14 Amortization of assets 15 Amortization Amortization of intangible of intangible assets assets 15 15 Doubtful accounts and bad debts Doubtful Doubtful accounts andand badbad debts debts (badaccounts debts recovery) 7 (bad (bad debts debts recovery) recovery) 7 7 Marketing expenses Marketing Marketing expenses expenses Staff costs Staff Staff costs costs
15,465 15,465 15,465
10,153 10,153 10,153
-5,545 5,545 5,545 658 658658
8,606 8,606 8,606 1,200 1,200 1,200 536 536536
1,538 1,538 1,538 16,012 16,012 16,012 8,182 8,182 8,182
1,315 1,315 1,315 6,901 6,901 6,901 8,078 8,078 8,078
30. FINANCE FINANCE COSTS COSTS 30. 30.30. FINANCE FINANCE COSTS COSTS Finance costs for the years ended December 31, are as follows: Finance Finance costs costs forfor thethe years years ended ended December December 31,31, areare as as follows: follows:
Subsidiaries Subsidiaries Subsidiaries Associate and Related parties Associate and Related parties Associate andinstitutions Related parties Financial Financial institutions Financial institutions Total Total Total
187
Advanced Info Service Public Company Limited
Notes Notes Notes Notes 34 34 34 34 34 34
Consolidated Consolidated Consolidated Consolidated financial statements financial statements financial financial statements 2016 statements 2015 2016 2016 2015 2015 2016 2015 - - 35 35 35 4,201 4,201 4,201 4,236 4,236 4,236
- 65 - 65 - 65 - -
- - 5 5 5 1,954 1,954 1,954 1,959 1,959 1,959
Unit: Million Baht Separate Unit: Unit: Million Million Baht Baht Separate financial statements Separate Separate financial statements 2016 statements 2015 financial financial 2016 statements 2015 2016 2016 2015 2015 127 127127
289 289289
- -- - 25 25 25
8,606 8,606 -8,606 - - 41 41 41
(2) (2)22 (2) 22772 22 772772
- - 138 138 138 1,183 1,183 1,183
Unit: Million Baht Unit: Baht Million Baht Unit: Unit: Million Million Baht Separate Separate Separate Separate financial statements financial statements financial financial statements 2016 statements 2015 2016 2016 2015 2015 2016 2015 91 91 91 6 6 6521 521521 618 618618
57 57 - 57 - -653 653653 710 710710
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR 31, 2016 2016 FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31, FOR THE YEAR ENDED DECEMBER 31, 2016 INCOME TAX EXPENSE 31. INCOME TAX TAX EXPENSE EXPENSE 31. INCOME 31. 31. INCOME TAX EXPENSE
Income Income tax tax expense expense recognized recognized in in the the statements statements of of profit profit or or loss loss for for the the years years ended ended Income tax expense recognized in the statements of profit or loss for the years ended December 31, are as follows: December 31, are as follows: December 31, are as follows: Consolidated Consolidated financial statements Consolidated financial statements 2016 2015 financial 2016 statements 2015 2016
Notes Note Current Current tax tax expense expense Current year Current tax expense Current year Adjustment Current yearfor Adjustment for prior prior years years Adjustment for prior years Deferred Deferred tax tax expense expense Movements temporary Deferred taxin Movements inexpense temporary differences Movements in differences temporary Total income differences Total income tax tax expense expense Total income tax expense
Note Note
2016
16 16 16
2015
6,513 6,513 28 6,513 28 6,541 28 6,541 6,541
9,666 9,666 14 9,666 14 9,680 14 9,680 9,680
(1,366) (1,366) 5,175 (1,366) 5,175 5,175
319 319 9,999 319 9,999 9,999
Unit: MillionBaht Baht Unit: Unit: Million Million Baht Separate Separate Unit: Million Baht Separate financial statements financial statements Separate financial statements 2016 2015 financial statements 2016 2015 2016 2015 ----
--
(803) (803) (803) (803) (803)
11 11 1 600 600 601 600 601 601
Actuarial Actuarial losses losses on on employee employee benefit benefit obligations obligations Total Actuarial losses on employee benefit obligations Total Total
Actuarial Actuarial gains gains from from employee employee benefit benefit obligations obligations Total Actuarial gains from employee benefit obligations Total Total
-- 66 66 -- 66 -
Unit: Million Baht Unit: Unit: Million MillionBaht Baht Consolidated financial statements Unit: Million Consolidated financial statements Baht 2015 Consolidated statements Consolidated financial financial statements 2015 Tax 2015 Tax 2015 Before (expense) Net Tax Before (expense) Net of of Tax (expense) tax benefit tax Before (expense) Net tax benefit taxof Before benefit Nettax of tax taxtax benefit (637) 129 (508) (637) 129 (508) (637) 129 (508) (637) 129 (508) (637) 129 (508) Unit: Unit: Million Million Baht Baht Separate financial statements Unit: Million Unit: MillionBaht Baht Separate financial statements 2015 Separate financial statements 2015 Seperate financial statements Tax 2015 Tax Before (expense) Net Tax 2015 Before (expense) Net of of tax benefit tax Before (expense) Net of tax benefit tax Taxbenefit (expense) tax Before tax14 benefit (3) Nettax of tax 11 14 (3) 11 (3) 11 14 14 (3) 11 14 (3) 11
Annual Report 2016
188
FINANCIAL REPORT
Income Income tax tax expense expense recognized recognized in in the the statements statements of of profit profit or or loss loss and and other other comprehensive comprehensive Income tax expense recognized in the statements of profit or loss and other comprehensive income for the years ended December 31, are as follows: income for the years ended December 31, are as follows: income for the years ended December 31, are as follows:
FINANCAIL REPORT
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFOENDED SERVICE PUBLIC COMPANY 31, 2016 LIMITED AND ITS SUBSIDIARIES FOR THE YEAR DECEMBER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 Reconciliation of effective tax rate for the years ended AND December 31, are as follows: ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS Million Baht Reconciliation of effective tax rate31, for2016 the years ended December 31, are asUnit: follows: FOR THE YEAR ENDED DECEMBER Consolidated financial statements Consolidated financial statements 2016 2015 Unit: Million Baht Rate (%) Rate (%) 2016 2015 Consolidated financial statements Reconciliation of effective tax rate for the years ended December 31, are as follows: Profit before income tax expense 35,865 2015 49,154 Baht Rate Million Baht Rate (%)2016Million7,173 Income tax using the applicable tax rate 20(%) 20(%) Rate Rate (%) Unit: Million9,831 Baht Profit incometotax 35,865 49,154 Incomebefore not subject taxexpense - financial statements (6) Consolidated Expenses deductible for tax purposes Income taxnot using the applicable tax rate 20 7,173 20 9,831 97 9 2016 2015 Additional deduction Rate (%) Rate (%) Income notcapital subjectexpenditure to tax (6) allowed (835) - 9 Profit before tax for expense 35,865 49,154 Expenses not income deductible tax purposes 97 Recognition of previously unrecognized Additional expenditure Income tax capital using the applicablededuction tax rate 20 7,173 20 9,831 temporary difference (1,281) (1,042) allowednot subject - (6) Income to tax -(835) Adjustment prior years 28 14 Recognition ofdeductible previously Expenses notfor forunrecognized tax purposes 97 9 Effect from elimination with subsidiaries (7) (32) temporary difference (1,281) (1,042) Additional capital expenditure deduction Current losses which no deferred tax Adjustment priorfor years 28 allowedyearfor (835) - 14 assets was recognized - (7) 1,087 Effect from elimination with subsidiaries (32) Recognition of previously unrecognized Written-off deferred tax assets 138 Current year losses for which no deferred tax temporary difference (1,281) (1,042) 14 5,175 20 9,999 Total assets was recognized - 28 1,087 Adjustment for prior years 14 Written-off deferred tax assets 138 Effect from elimination with subsidiaries (7) (32) Baht 14 5,175 20 Unit: Million9,999 Total year losses for which no deferred tax Current Separate financial statements assets was recognized 1,087 2016 2015 Unit: Million Baht Written-off deferred tax assets 138 Rate financialRate statements 14(%) Separate 5,175 20(%) 9,999 Total Profit before income tax expense 29,159 2016 2015 39,198 Seperate financial statements Income tax using the applicable tax rate 20 5,832 20 7,840 Rate (%) Rate (%) Unit: Million Baht Income not subject taxexpense (5,602) (7,349) Profit before incometotax 29,159 39,198 2016 2015 Separate financial statements Expenses deductible for tax purposes (17) 58 Income taxnot using the applicable tax rate 20 5,832 20 7,840 2016 Million(5,602) Baht Rate (%) 2015 Million(7,349) Baht Rate (%) Recognition of previously Income not subject to tax unrecognized Rate (%) Rate (%) Rate (%) Million temporary (1,016) (1,109) Baht Expenses notdifference deductible tax purposes (17) 58 Profit before income tax for expense 29,159 39,198 Adjustment for prior years 1 Recognition of previously unrecognized Income tax using the which applicable tax rate tax 20 5,832 20 7,840 Current year loss for no deferred temporary difference (1,016) (1,109) Income notrecognized subject to tax (5,602) (7,349) asset was -1,022 Adjustment for prior years 1 Expenses not deductible for tax purposes (17) 58 Written-off deferred tax assets 138 Current year loss for which no deferred tax Recognition of previously unrecognized (3) 2 601 Total asset was recognized -(803) 1,022 temporary difference (1,016) (1,109) Written-off assets -138 Adjustment deferred for prior tax years 1 (803)under the 2 Revenue Code 601 Total According RoyalnoDecree No. 557 (3) B.E. 2557 issued Current year to lossthe for which deferred tax regarding the corporate income tax rate reduction effective the 1,022 asset was recognized - on November 11, 2014, Written-off deferred tax assets 138 According to the Royal Decree No. 557 B.E. 2557 issued under the Revenue Code corporate income tax rates were 20% of net profit for accounting period which begins on (3) (803) 2 regarding the corporate income tax than rate reduction effective on November 11, 2014, 601 the orTotal after January 1, 2015 but not later December 31, 2015.
corporate income tax rates were 20% of net profit for accounting period which begins on According to the the RoyalbutDecree No. 557 B.E.Act2557 Revenue Code According to Code Amendment No. 42 B.E.under 2559the which is effective or after January 1, Revenue 2015 not later than December 31, issued 2015. regarding the5,corporate incomethetax rate reduction on November 2014, from March 2016 onwards, corporate increaseeffective tax is reduced from 3011, % to 20%the of corporate income tax rates were 20% of net profit for accounting period which begins on According the Revenue Code Amendment 42 B.E. 2559onwards. which is effective net profit fortoaccounting period beginning on orAct afterNo. January 1, 2016 or after January 1, 2015 but notthe later than December from March 5, 2016 onwards, corporate increase31, tax2015. is reduced from 30 % to 20% of Theprofit Groupforand the Company appliedonthe of 20% for calculated net accounting periodhave beginning or tax afterrate January 1, 2016 onwards. income tax According the Revenue Amendment Act No. 42 B.E.31,2559 is effective expense andtodeferred incomeCode tax for the years ended December 2016which and 2015. from March 5, 2016 onwards, the corporate increase tax is reduced from 30 % to 20%tax of The Group and the Company have applied the tax rate of 20% for calculated income net profit for accounting period beginning on or after January 1, 2016 onwards. expense and deferred income tax for the years ended December 31, 2016 and 2015.
The Group and the Company have applied the tax rate of 20% for calculated income tax expense and deferred income tax for the years ended December 31, 2016 and 2015. 189
Advanced Info Service Public Company Limited
- 67 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS NOTES TOYEAR THE FINANCIAL STATEMENTS 31, 2016 FOR THE ENDED DECEMBER FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016
32. EARNINGS PER 32. PER SHARE SHARE 32. EARNINGS EARNINGS PER SHARE 32. EARNINGS PER SHARE Basic Basic Basic earnings earnings per per share share
Basic earnings per share The 31, are are based based on on The calculation calculation of of basic basic earnings earnings per per share share for for the the years years ended ended December December 31, The calculation of basic earnings per share for the years ended December 31, are based on the profit for the years attributable to ordinary shareholders of the Company and the the profit for the years attributable to ordinary shareholders of the Company and the the profitaverage for the number years attributable ordinary shareholders of the Company and the weighted average number of ordinary ordinary to shares outstanding during the the years as follows: follows: weighted of shares outstanding during years as weighted average number of ordinary shares outstanding during the years as follows:
(Million Baht/million shares) (Million Baht / Million shares) (Million Baht/million shares)
Profit attributable to ordinary shareholders of Profit attributable to ordinary shareholders of Profit attributable to ordinary shareholders of the Company (basic) the Company (basic) the Company (basic) Weighted average number of ordinary shares Weighted average number of ordinary shares Weighted average number of ordinary shares outstanding (basic) outstanding (basic) outstanding (basic)
2016 30,667 30,667 30,667
2015 39,152 39,152 39,152
2016 29,962 29,962 29,962
2015 38,597 38,597 38,597
10.31 10.31 10.31
13.17 13.17 13.17
10.08 10.08 10.08
12.98 12.98 12.98
2,973 2,973 2,973
2,973 2,973 2,973
2,973 2,973 2,973
2,973 2,973 2,973
Diluted earnings Diluted earnings per per share Diluted earnings per share share Diluted earnings per share The The calculation calculation of of diluted diluted earnings earnings per per share share for for the the years years ended ended December December 31, 31, are are based based Thethe calculation diluted per to share for the yearsof December based on profit years attributable equity holders the and the weighted on the profit for forofthe the years earnings attributable to equity holders ofended the Company Company and31, theare weighted on the profit for the years attributable to equity holders of the Company and the weighted average number of ordinary shares outstanding during the years after adjusting for effects average number of ordinary shares outstanding during the years after adjusting for the effects of of average number of ordinary shares outstanding during the years after adjusting for the effects of all dilutive potential ordinary shares as follows: all dilutive potential ordinary shares as follows: all dilutive potential ordinary shares as follows:
(Million Baht/million shares) (Million Baht/million shares) (Million Baht / Million shares) Baht/million shares) Consolidated (Million Separate Consolidated Separate Consolidated Separate Consolidated financial statements financial statements financial statements financial statements statements financial statements financial financial statements financial statements 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 30,667 39,152 29,962 38,597 30,667 39,152 29,962 38,597 39,152 29,962 38,597 30,667
Profit attributable to shareholders of Profit attributable to shareholders of Profit attributable to shareholders of the Company (basic) the Company (basic) the Company (basic) Profit attributable to shareholders of Profit attributable to shareholders of Profit attributable to shareholders of the Company (diluted) the Company (diluted) the Company (diluted)
Weighted average number of ordinary shares Weighted average number of ordinary shares Weighted average number of ordinary shares outstanding (basic) outstanding (basic) outstanding (basic)number of ordinary shares Weighted average Weighted average number of ordinary shares Weighted average number of ordinary shares outstanding (diluted) outstanding (diluted) outstanding (diluted) Earnings per share (diluted) (in Baht) Earnings per share (diluted) (in Baht) Earnings per share (diluted) (in Baht)
-- 68 68 -- 68 -
30,667 30,667 30,667
39,152 39,152 39,152
29,962 29,962 29,962
38,597 38,597 38,597
2,973 2,973 2,973
2,973 2,973 2,973
2,973 2,973 2,973
2,973 2,973 2,973
10.31 10.31 10.31
13.17 13.17 13.17
10.08 10.08 10.08
12.98 12.98 12.98
2,973 2,973 2,973
2,973 2,973 2,973
2,973 2,973 2,973
2,973 2,973 2,973
Annual Report 2016
190
FINANCIAL REPORT
Earnings per share (basic) (in Baht) Earnings per share (basic) (in Baht) Earnings per share (basic) (in Baht)
Consolidated (Million Baht/million Separate Consolidated Separateshares) Consolidated Separate Consolidated Separate financial statements statements financial statements financial statements financial statements financial statements financial statements financial statements 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFO SERVICE COMPANY LIMITED AND ITS SUBSIDIARIES 31, 2016 FOR THE YEAR ENDEDPUBLIC DECEMBER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
FINANCAIL REPORT
DIVIDENDS 33. DIVIDENDS 33.
33.
At the DIVIDENDS
Annual General Meeting of the shareholders of the Company held on March 24, 2015, the shareholders approved the appropriation of dividend of Baht 12.00 per share. At theThe Annual General Meeting of thedividend shareholders the of Company held March 2015, 2, Company paid an interim at theofrate Baht 6.04 peronshare on24, September the shareholders approved the appropriation of paid dividend of 5.96 Bahtper 12.00 share. to share,peramounting 2014, therefore the remaining dividend to be is Baht The Company paid an interim at thepaid ratetoofshareholders Baht 6.04 per 2, Baht 17,718 million. The dividend was on share April on 22,September 2015. 2014, therefore the remaining dividend to be paid is Baht 5.96 per share, amounting to the Board of The Director’s meeting heldtoonshareholders August 3, 2015, it was Baht At 17,718 million. dividend was paid on April 22, approved 2015. to declare an interim dividend of Baht 6.50 per share amounting to Baht 19,324 million. The interim At the Board of meeting held August 3, 2015, it was approved to declare an dividend wasDirector’s paid to shareholders on on September 1, 2016. interim dividend of Baht 6.50 per share amounting to Baht 19,324 million. The interim At the Meeting of the shareholders dividend wasAnnual paid toGeneral shareholders on September 1, 2016. of the Company held on March 29, 2016, the shareholders approved the appropriation of dividend of Baht 12.99 per share. At theThe Annual General Meeting of thedividend shareholders theof Company held March 2016, 1, Company paid an interim at theofrate Baht 6.50 peronshare on29, September the shareholders approved the appropriation dividend of 6.49 Baht per 12.99 share. to share,peramounting 2015, therefore the remaining dividend to of be paid is Baht The Company paid an interim dividend was at the ratetoofshareholders Baht 6.50 per share 22, on September 1, Baht 19,295 million. The dividend paid on April 2016. 2015, therefore the remaining dividend to be paid is Baht 6.49 per share, amounting to the Board ofThe Director’s meeting heldtoon August 4, 2016, it was approved to declare an Baht At 19,295 million. dividend was paid shareholders on April 22, 2016. interim dividend of Baht 5.79 per share amounting to Baht 17,214 million. The interim At the Board of meeting held August 4, 2016, it was approved to declare an dividend wasDirector’s paid to shareholders on on September 1, 2016. interim dividend of Baht 5.79 per share amounting to Baht 17,214 million. The interim dividend was paid to shareholders on September 1, 2016. 34. RELATED PARTIES PARTIES 34.
34.
Enterprises and RELATED PARTIES
191
individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with the Company, including Enterprises individualssubsidiaries that directly,and or indirectly through one or intermediaries, aremore related parties of the holdingandcompanies, fellow subsidiaries control, or are controlled or are directly under common control the in Company, Company. Individualsby, owning, or indirectly, an with interest the votingincluding power of the holding companies, subsidiaries and fellow subsidiaries are enterprise, related parties of the key management Company that gives them significant influence over the Company. Individuals owning, directly indirectly, an interest in the of theof the personnel, including directors andorofficers of the Company andvoting closepower members Company significant the enterprise, key management familythat of gives these them individuals and influence companiesover associated with these individuals also personnel, including constitute relateddirectors parties. and officers of the Company and close members of the family of these individuals and companies associated with these individuals also In considering each possible related party relationship, attention is directed to the constitute related parties. substance of the relationship, and not merely the legal form. In considering each possible related party relationship, attention is directed to the During the Group Company have entered into a number of transactions substance of the year, relationship, andand not the merely the legal form. with related parties, the terms of which are negotiated in the ordinary course of business During year, thetoGroup and the conditions. Company have enteredofinto a number of transactions andthe according normal trade Purchases products and services are charged with at related parties,prices the terms which are negotiated in the to ordinary courserate of business the market with general reasonable and of those prices are comparable and according to normal In trade conditions. Purchases of productsservice and services arecharged charged on a trading conditions. 2015, consulting and management fees are at reasonable prices and prices are of comparable to the market ratecalculated with general mutually agreed basisthose as a percentage assets. While, such fees are based on trading conditions. In which 2015, consulting andperforms management serviceparties fees are charged a activities portion the Company to counter in 2016 andon effective mutually basis as a onwards. percentage of assets. While, such fees are calculated based on sinceagreed January 1, 2016 activities portion which the Company performs to counter parties in 2016 and effective since January 1, 2016 onwards.
Advanced Info Service Public Company Limited
- 69 -
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES NOTES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS FOR 31, 2016 2016 FOR THE THE YEAR YEAR ENDED ENDED DECEMBER DECEMBER 31,
Relationships Relationships with with related related parties parties are are as as follows: follows:
Country ofof Country Country of incorporation/ incorporation/ nationality nationality nationality
Name Name of of entities entities
Name of entities
Subsidiaries Subsidiaries
Intouch Intouch Holdings Holdings Public Public Company Company Limited Limited and and its its related parties related parties (“INTOUCH (“INTOUCH Group”) Group”)
SingTel SingTel Strategic Strategic Investments Investments Pte Ltd. Pte Ltd. and and its its related related parties parties (“SingTel (“SingTel Group”) Group”)
Nature Nature of of relationships relationships
Nature of relationships
Thailand Thailand
Subsidiaries Subsidiaries are are entities entities controlled controlled by by the the Group Group
Singapore Singapore
SingTel SingTel Strategic Strategic Investments Investments Pte Pte Ltd. Ltd. (“SingTel”) (“SingTel”) is a shareholder who has significant is a shareholder who has significant influence influence over over the the Company. Company.
Thailand Thailand and and Laos Laos Intouch Intouch Holdings Holdings Public Public Company Company Limited Limited (“INTOUCH”) is a shareholder (“INTOUCH”) is a shareholder who who has has significant significant influence influence over over the the Company Company and and has has some some joint joint directors. directors.
Information Information Highway Highway Co., Co., Ltd. Ltd.
Thailand Thailand
Associate Associate
Other Other related related parties parties
Thailand Thailand
Other Other parties parties have have some some joint joint directors directors and and directors of related parties. directors of related parties.
Amata Amata Network Network Co., Co., Ltd. Ltd.
Thailand Thailand
Joint Joint venture venture
Consolidated Consolidated Consolidated financial statements financial statements financial statements 2016 2015 2016 2015 Service Service income income Subsidiaries Subsidiaries INTOUCH INTOUCH Group Group SingTel SingTel Group Group Other Other related related parties parties Total Total
2016 --
31 31 402 402 135 135 568 568
2015 --
34 34 649 649 22 685 685
Unit: Baht Unit: Million Million Baht Unit: Million Baht Separate Separate Separate financial statements financial statements financial statements 2016 2015 2016 2015
2016
2015
4,593 4,593 -11 -4,594 4,594
24,377 24,377 99 150 150 -24,536 24,536
Sales Sales of of property property and and other other assets assets Subsidiaries Subsidiaries
--
--
22 22
365 365
Dividend Dividend income income Subsidiaries Subsidiaries
--
--
28,009 28,009
36,725 36,725
Interest Interest income income Subsidiaries Subsidiaries Associate Associate Total Total
----
--
1,508 1,508 -1,508 1,508
1,520 1,520 -1,520 1,520
-- 70 70 --
22 22
Annual Report 2016
192
FINANCIAL REPORT
Significant Significant transactions transactions with with related related parties parties for for the the years years ended ended December December 31, 31, are are as as follows: follows:
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Other income Subsidiaries INTOUCH Group Total Rental and other service expenses Subsidiaries INTOUCH Group SingTel Group Associate Other related parties Total
Consolidated Consolidated financial statements financial statements 2016 2015 2016 2015 -
-
FINANCAIL REPORT
Advertising expense INTOUCH Group
9 9
519 283 176 1 979
-
-
8 8
498 464 43
1,005
1
22
1,577 1,577
310 1 311
3,732 1 95 3,828
8,838 20 74 8,932
-
3
Sale promotion expense Subsidiaries
-
-
2
15
Commission expense Subsidiary
-
-
12
253
141 9 150
199 10 209
Management benefit expenses Short-term employee benefit Share-based payments Total Purchase of property and other assets Subsidiaries INTOUCH Group Associate Total Finance costs Subsidiaries INTOUCH Group Associate Other related parties Total Dividend paid INTOUCH SingTel Total
193
Unit: Million Baht
Unit: Million Baht Separate Separate financial statements financial statements 2016 2015 2016 2015
Advanced Info Service Public Company Limited
141 9 150 -
-
130 27 157
2 6 27 35
14,768 8,514 23,282
199 10 209 -
-
59 59
1 3 1 5
14,984 8,638 23,622
-
-
-
91 6 97
14,768 8,514 23,282
-
10 10 57
57
14,984 8,638 23,622
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Balances with related parties are as follows:
Unit: Million Baht
Unit: Million Baht Consolidated Separate Consolidated Separate financial statements financial statements financial statements financial statements As at Asatat Asatat As at As As As December 31, December 31, December December31, 31, December31, 31, December December 2016 2015 2016 2015 2016 2015 Cash and cash equivalents Bank deposit Other related parties Trade and other receivables Trade receivables Subsidiaries INTOUCH Group SingTel Group Other related parties
-
-
Total trade receivables Other receivables - Accrued interest income Subsidiaries Total other receivables Total trade and other receivables (see Note 7)
6 19 31 56 3 8 1 12 68
-
199
-
4 1 5 2 4 6 11
68
11
1
-
-
49 4 53 3
3 56
-
-
-
711
711 910
FINANCIAL REPORT
Accrued income Subsidiaries INTOUCH Group SingTel Group Associate
113
910 1,621
123 123
508 508
179
2,129
Dividend receivable Subsidiaries
-
-
12,093
19,944
Short-term loans to related parties Subsidiaries
-
-
39,244
44,244
As at December 31, 2016, the Company has short-term loans at call to subsidiaries represent promissory notes at call, bearing interest at the average rate of 2.84 % per annum (December 31, 2015: average rate of 3.67% per annum).
- 72 -
Annual Report 2016
194
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO YEAR THE FINANCIAL STATEMENTS 31, 2016 FOR THE ENDED DECEMBER 31, 2016 LIMITED AND ITS SUBSIDIARIES FOR THE YEAR ENDED DECEMBER ADVANCED INFO SERVICE PUBLIC COMPANY
NOTES TO THE FINANCIAL STATEMENTS Movements of short-term loans to related parties for the years ended December 31, are as 2016parties for the years ended December 31, are as FOR THE YEAR ENDED DECEMBER Movements of short-term loans to31, related
follows: follows: Baht Unit:Unit: Million Movements of short-term loans to related parties for the years ended December 31,Million areBaht as Consolidated Separate Unit: Million Baht Consolidated Separate follows: financial statements financial statements Short-term loans to related parties As at January 1, to related parties Short-term loans Increase As at January 1, Decrease Increase Short-term loans to related parties Decrease As at December 31, As at January 1, As at December 31, Increase Decrease As at December 31,
FINANCAIL REPORT
Long-term rental deposit Subsidiary rental deposit Long-term Subsidiary Trade and other payables Long-term rentalpayables deposit Tradeand payables Trade other Subsidiary Subsidiaries Trade payables INTOUCH Group Subsidiaries Trade and other payables SingTel Group INTOUCH Group Trade payables Other related SingTel Groupparties Subsidiaries Associate Other related parties INTOUCH Group Associate Total trade payables SingTel Group Total trade payables Other parties Otherrelated payables Associate - Otherpayables payable Other Total trade payables Subsidiaries - Other payable Subsidiaries Other payables - Accrued expenses - Other payable Subsidiaries - Accrued expenses Subsidiaries INTOUCH Group Subsidiaries SingTel Group INTOUCH Group - Accrued expenses Associate SingTel Group Subsidiaries Associate INTOUCH Group Total other payables SingTel Group Total Totalother tradepayables and other payables Associate (see Noteand 18)other payables Total trade (see Note 18) Total otherlease payables Financial liabilities Total trade and other payables Associate lease liabilities Financial (see Note 18) Associate Short-term loans from Financial lease liabilities related parties Short-term loans from Associate Subsidiaries related parties Subsidiaries Short-term loans from related parties Subsidiaries
195
Advanced Info Service Public Company Limited
Consolidated financial statements 2016 2015 financial statements 2016 2015 2016 2015
Separate financial statements 2016 2015 financial statements 2016 2015 Unit: Million Baht 2016 2015 Consolidated Separate 95 44,244 35,590 financial statements financial statements - 95 25,839 39,157 -44,244 35,590 2016 2015 2016 2015 (95) (30,839) (30,503) -25,839 39,157 -(30,839) (30,503) - (95) 39,244 44,244 95 44,244 35,590 39,244 44,244 25,839 39,157 Baht (95) (30,839)Unit: Million (30,503) Consolidated Separate Unit: Million Baht 39,244 44,244 Unit: Million Baht financial statements financial statements Consolidated Separate As at Consolidated As at As at Separate As at financial statements financial statements Unit: Million Baht December December December Asfinancial at 31, statements As at 31, December As at 31, statements As at 31, financial Consolidated Separate 2016 31, December 2015 31, December 2016 31, December 2015 31, December financial statements financial statements As at As at As at As at 2016 2015 2016 2015 As at 31, As at 31, December As at 31, December As at 31, December December 742 December 31, December 31, December 31, December 31, 2016 2015742 2016 2015 2016 2015 2016 2015 --
25 269 25 - 269 6 25 6 300 269 300 6 - 300 -50 22 50 17 22 17 89 50 89 89 22 89 17 389 89 389 89 85 389 85 -
85
-
- 73 - 73 -
--
89 229 89 2295 5 89 - 323 229 323 5 - 323 -91 31 91 10 31 10 132 91 132 132 31 132 10 455 132 455 132 72 455 72 -
72
- 199 - 199 20 - 20 199 -- 219 20 219 - 219 -111 - 111 15 - 15 111 - 126 126 126 15 126 345 126 345 126 - 345
742 195 1951 68 1 - 68 195 -1 - 264 68 264 264 273 273 273 273 584 273 - 584 273 16 - 16 584 - 600 600 873 16 873 1,137 600 1,137 873 - 1,137
- 6,440 6,440
- 6,490 6,490
6,440
6,490
ADVANCED ADVANCED INFO INFO SERVICE SERVICE PUBLIC PUBLIC COMPANY COMPANY LIMITED LIMITED AND AND ITS ITS SUBSIDIARIES SUBSIDIARIES NOTES TO TO THE THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS NOTES ADVANCED INFOENDED SERVICE PUBLIC COMPANY 31, 2016 LIMITED AND ITS SUBSIDIARIES FOR DECEMBER FOR THE THE YEAR YEAR ENDED DECEMBER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
As at December 31, 2016, short-term loan from related parties represent promissory notes at call, bearing interest at the rate of 1.41 % per annum (December 31, 2015: 1.40% per annum). As at December 31, 2016, short-term loan from related parties represent promissory notes at Movements short-term borrowings for the December 31, call, bearing of interest at the rate of 1.41 from % perrelated annumparties (December 31,years 2015:ended 1.40% per annum). are as follows: Movements of short-term borrowings from related parties for the years ended December 31, Unit: Million Baht Unit: Million Baht Unit: Million Baht are as follows: Consolidated Separate Short-term borrowings borrowings from from related related parties parties Short-term As at at January January 1, 1, As Increase Increase Short-term borrowings from related parties Decrease Decrease As at January 1, As at at December December 31, 31, (see (see Note Note 17) 17) As Increase Decrease As at December 31, (see Note 17)
with related
Separate Separate financial statements financial statements financial Unit: statements Million Baht 2016 2016 Separate2015 2015 2016 2015
financial statements financial statements 6,490 --6,490 -2016 2015 2016 2015 4,000 2,523 7,190 4,000 -2,523 7,190 (4,000) (2,573) (700) -(2,573) -(4,000) 6,490 - (700) 6,440 6,490 2,523 7,190 -- 4,000 -6,440 6,490 (4,000) (2,573) (700) Unit: Million Million6,490 Baht 6,440 Unit: Baht Unit: Million Baht Consolidated Separate Consolidated Separate financial statements financial statements Consolidated Separate financial statements financial statements Unit: Million Baht As at As at As at at As at financial statements financial statements As atConsolidated As at As at SeparateAs December 31, December 31, December 31, December 31, December 31, statements December 31, December 31, statements December 31, financial financial As at As at As at As at 2016 2015 2016 2015 2016 2015 2016 2015 As at As at As at As at 31, December 31, December 31, December December 31, December 31, December 31, December 31, December 31, 2016 37 2015 2016 2015 37 --2016 37 201537 2016 2015 13 13 13 13 --50 50 37 37 50 50 --13 13 50 parties 50
The Group and the Company entered into agreements with related parties. There are agreements with related parties Significant agreements with have related parties commitment for receipts and payments according to rates under the terms and conditions
commitment for receipts and payments according to rates under the terms and conditions The Group in andthe theagreements. Company have into agreements parties. There stipulated Theentered significant agreementswith withrelated related parties are are as commitment for receipts and payments according to rates under the terms and conditions follows: stipulated in the agreements. The significant agreements with related parties are as 1) The Group has entered into interconnection and national roaming agreements among follows: its related parties. The termination and suspension of the agreement are referred to 1) The Group has and entered into interconnection national roaming agreements among the regulations conditions of the Nationaland Telecommunications Commission. its related parties. The termination and suspension of the agreement are referred to 2) The Group has and entered into siteofshare agreements among its related Commission. parties to provide the regulations conditions the National Telecommunications site area including related facilities for installation of telecommunication equipment. 2) The The Group has entered agreements among its to provide counterparty has ainto rightsite to share terminate the agreement byrelated givingparties advance written site area facilities for installation of telecommunication equipment. notice notincluding less thanrelated 60 days. The counterparty has a right to terminate the agreement by giving advance written 3) The have received a service of a call center from Advanced Contact noticesubsidiaries not less than 60 days. Center Co., Ltd. (“ACC”), a subsidiary. ACC will provide service and required 3) information The subsidiaries haveresolving received problem a serviceforofthe a customers call centeroffrom Advanced Contact including the Group. Center Co., Ltd. (“ACC”), a subsidiary. ACC will provide service and required information including resolving problem for the customers of the Group.
- 74 -
Annual Report 2016
196
FINANCIAL REPORT
Long-term debentures debentures Long-term INTOUCH Group Group INTOUCH Other relateddebentures parties Other related parties Long-term Total (see (see Note Note 17) Total 17) INTOUCH Group Other related parties Total (see Note 17) Significant agreements
Consolidated Consolidated financial statements financial statements statements financial 2016 2015 2016 2015 2016 2015 Consolidated
FINANCAIL REPORT
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
4)
Advanced Contact Center Co., Ltd., a subsidiary, has entered into a call center service agreement with Teleinfo Media Plc. (“TMC”), a related party. TMC will arrange the personnel and provide call center operation to execute each of incoming call service. The counterparty has a right to terminate the agreement by giving advance written notice not less than 30 days.
5)
The Company and its related parties have entered into an agreement with Advanced Magic Card Co., Ltd. and Advanced Mpay Co., Ltd., its subsidiaries, to provide payment service for goods/service purchased through electronic payments and cash card. The counterparty has a right to terminate the agreement by giving advance written notice not less than 30 days.
6)
Advanced Magic Card Co., Ltd. and Advanced Mpay Co., Ltd., its subsidiaries, have entered into an agreement with Wireless Device Supply Co., Ltd., a subsidiary, to distribute electronic money and cash card. The counterparty has a right to terminate the agreement by giving advance written notice not less than 30 days.
7)
The Company and its subsidiaries have entered into an agreement with Wireless Device Supply Co., Ltd., a subsidiary, to provide card packaging. The counterparty has a right to terminate the agreement by giving advance written notice not less than 30 days.
8)
The Company and its subsidiaries have entered into an international roaming service agreement with the SingTel Group, related parties. The counterparty has a right to terminate the agreement by giving advance written notice not less than of 60 days.
9)
The Company and its subsidiaries have entered into an agreement with MIMO Tech Co., Ltd., a subsidiary, of providing aggregating value added services on mobile network or wireless device. The counterparty has a right to terminate the agreement by giving advance written notice not less than 30 days.
10) The Company and its subsidiaries have entered into an agreement with its related parties to provide or aggregating value added services on mobile network or wireless device. The counterparty has a right to terminate the agreement by giving advance written notice not less than 30 days. 11) Advance Wireless Network Co., Ltd. (“AWN”), has entered into a satellite transponder lease agreement with Thaicom Public Company Limited, a related party, AWN agreed to pay service fee on monthly basis according to the rate and condition specified in the agreement. The agreement is valid until November 19, 2017. 12) MIMO Tech Co., Ltd., a subsidiary, has entered into computer system maintenance services agreements with I.T. Applications and Services Company Limited, a related party. The agreement is valid for one year and is renewable on an annual basis. The counterparty has a right to terminate the agreement by giving advance written notice not less than 3 months.
197
Advanced Info Service Public Company Limited
- 75 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
13) Advanced Wireless Network Co., Ltd., a subsidiary, has entered into fibre optic system and its site facilities agreement with Information Highway Co., Ltd. (“IH”), an associate. IH will provide installation fibre optic transmission and maintenance services in specific areas. The counterparty has a right to terminate the agreement by giving the counterparty advance written notice not less than 30 days. 14) Advanced Wireless Network Co., Ltd., a subsidiary, has entered into agreement with TC Broadcasting Company Limited, a related party, to receive a satellite equipment system and television signal service. The counterparty has a right to terminate the agreement by giving the counterparty advance written notice not less than 30 days.
35. 35. FINANCIAL FINANCIAL INSTRUMENTS INSTRUMENTS Financial risk riskmanagement management policies policies Financial
Capitalmanagement management Capital The Group and the Company aim to manage its capital structure to be stronger than industry peer and commit to be investment grade rating. This will allow the Group and the Company to retain superior financial flexibility in order to capture future growth prospect. The Group’s and the Company’s financial flexibility means diversified source of capital, ease of funding, and appropriate cost of capital. In 3-5 years, telecommunications industry in Thailand will face another phase of technology change and hence new investment will be required. The Group and the Company believe that they can leverage on their capital structure in the future and have ability to find the source of funds through the debt instrument in order to expand their business.
Interest Interest rate rate risk risk Interest rate risk is the risk that future movements in market interest rates will affect the results of the Group’s and the Company’s operations and its cash flows because some of debt securities and loan interest rates are floating interest rate. The Group and the Company have interest rate risk from its borrowings (see Note 17). The Group and the Company mitigate this risk by ensuring that the majority of its debt securities and borrowings are at fixed interest rates and uses derivative financial instruments, principally interest rate swaps, to manage exposure to fluctuations in interest rates on specific debt securities and borrowings.
- 76 -
Annual Report 2016
198
FINANCIAL REPORT
Risk management is integral to the whole business of the Group and the Company. The Group and the Company have a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Group’s and the Company’s risk management process to ensure that an appropriate balance between risk and control is achieved.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Foreign currency currency risk risk Foreign The Group and the Company have foreign currency risk relating to expense and borrowings which are denominated in foreign currencies. The Group and the Company primarily utilise forward contracts, which are not more than 1 year, to hedge such financial liabilities denominated in foreign currencies to hedge long-term borrowings denominated in foreign currencies. The forward contracts entered into at the end of the reporting period also relate to borrowings, denominated in foreign currencies, for the subsequent period. The Group and the Company have foreign currency risk in respect of financial assets and liabilities denominated as at December 31, are as follows:
FINANCAIL REPORT
Notes Notes Cash and cash equivalents US dollar (USD) Euro (EUR) Total
4
Trade accounts receivable US dollar (USD) Euro (EUR) Total
7
Interest-bearing liabilities US dollar (USD) Total
17
Trade accounts payable US dollar (USD) Euro (EUR) Yen (JPY) Singapore dollar (SGD) Total Gross statement of financial position exposure Swap contracts - Purchasing Contracts - Selling contracts Total swap contracts Forward contracts Net exposure
18
Consolidated Consolidated financial financial statements statements 2016 2015 2016 2015 477 111 588
153 3 156
630 1 631
59 1 60
Unit: Million Baht Unit: Million Baht Separate Separate financialstatements statements financial 2016 2015 2016 2015
-
157 2 159
100 2 102
13
8 1 9
13
(6,038) (6,038)
(9,717) (9,717)
(5,358) (5,358)
(9,717) (9,717)
(5,450) (1) (1) (19) (5,471)
(3,611) (56) (166) (3,833)
(15) (1) (19) (35)
(108) (58) (5) (171)
(10,290)
(13,334)
(5,221)
(9,777)
6,473 (1,308) 5,165 4,943 (182)
8,159 8,159 8,190 3,015
4,511 4,511 89 (621)
8,159 8,159 147 (1,471)
-
Swap and forward contracts are held to hedge currency risk for gross statement of financial position exposure as at December 31, 2016 and 2015 and to retain future purchases.
199
Advanced Info Service Public Company Limited
- 77 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 31, 2016 FOR THE ENDED DECEMBER NOTES TOYEAR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016
Net swap and forward contracts receivable (payable) as at December 31, are as follows: Net swap and forward contracts receivable (payable) as at December 31, are as follows: Net swap and forward contracts receivable (payable) as at December 31, are as Unit: follows: Million Baht Consolidated Consolidated Consolidated financial statements financial statements Consolidated financial statements 2016 2015 2016 2015 financial statements 2016 2015 2016 2015
Unit: Million Baht
Unit: Million Baht Separate Separate Unit: Million Baht Separate financial statements financial statements Separate financial statements 2016 2015 2016 2015 financial statements 2016 2015 2016 2015
9,565 9,565 (8,159) 9,565 (8,159) 1,406 (8,159) 1,406 1,406 -1,406 1,406 1,406 152 152 (147) 152 (147) 5 (147) 5 5 9,717 9,717 (8,306) 9,717 (8,306) (8,306) 1,411 1,411 1,411 which the which the which the
Classification of swap and forward contracts in the financial statements as at December 31, Classification swap and forward contracts in the financial statements as at December 31, are as follows:of Classification of swap and forward contracts in the financial statements as at December 31, are as follows: are as follows:
Current assets Current assets Other current assets Current assets Other current assets Total current assets Other current assets Total current assets Total current assets Non-current assets Non-current assets Swap and forward contracts receivable Non-current assets Swap and forward contracts Total non-current assets receivable Swap and forward contracts receivable Total non-current assets Total non-current assets Total Total Total
Consolidated Consolidated Consolidated financial statements Consolidated financial statements financial statements 2016 2015 financial statements 2015 2016 2015 2016 2015 236 648 236 648 236 648 236 648 236 648 578 578 578 578 578 814 814 814
- 78 - 78 - 78 -
795 795 795 795 795 1,443 1,443 1,443
Unit: Million Baht Unit: Million Baht Unit: Million Baht Separate Unit: Million Baht Separate Separate financial statements Separate financial statements financial statements 2016 2015 financial statements 2016 2015 2016 2015 2016 2015 241 616 241 616 241 616 241 616 241 616 517 517 517 517 517 758 758 758
795 795 795 795 795 1,411 1,411 1,411
Annual Report 2016
200
FINANCIAL REPORT
Swap contracts: Swap contracts: - Purchasing contracts contracts: -Swap Purchasing Swap contractscontracts receivable 7,289 9,565 5,267 - Purchasing Swap contractscontracts receivable 7,289 9,565 5,267 payable* (6,473) (8,159) (4,511) Swap contracts contracts payable* receivable 7,289 9,565 5,267 Swap (6,473) (8,159) (4,511) 816 1,406 756 Swap contracts payable* (6,473) (8,159) (4,511) 816 1,406 756 816 1,406 756 - Selling contracts -Swap Selling contracts contracts receivable* 1,308 -Swap Selling contracts contracts receivable* 1,308 payable (1,361) Swap 1,308 --Swap contracts contracts receivable* payable (1,361) (53) Swap contracts payable (1,361) (53) - 1,406 - 756 Total swap contracts receivable 763 (53) Total swap contracts receivable 763 1,406 756 Total swap contracts receivable 763 1,406 756 Forward contracts: Forward contracts: Forward contracts receivable 4,994 8,227 91 Forwardcontracts contracts: Forward receivable 4,994 8,227 91 payable* (4,943) (8,190) (89) Forward contracts contracts payable* receivable 4,994 8,227 91 Forward (4,943) (8,190) (89) Total forward contracts receivable 51 37 2 Forward contracts payable* (4,943) (8,190) (89) Total forward contracts receivable 51 37 2 Total forward contracts receivable 51 37 2 Total swap and forward contracts: Total swap and forward contracts: Swap and forward contracts receivable 13,591 17,792 5,358 Total and swap and forward contracts: Swap forward contracts receivable 13,591 17,792 5,358 payable (12,777) (16,349) (4,600) Swap and forward contracts receivable 13,591 17,792 5,358 Swap forward contracts payable (12,777) (16,349) (4,600) Total and swap and forward contracts Swap and forward contracts payable (12,777) (16,349) (4,600) Total swap and forward contracts receivable 814 1,443 758 Total swap and forward contracts 814 1,443 758 receivable receivable 814 1,443 758 * The nominal amount of swap and forward contracts is the value of the original contracts * The nominal amount and forward value of maturity the original Company entered withof theswap commercial banks contracts and must is be the repaid at the date.contracts * The nominal amount and forward value of maturity the original Company entered withof theswap commercial banks contracts and must is be the repaid at the date.contracts Company entered with the commercial banks and must be repaid at the maturity date.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 31, 2016 LIMITED AND ITS SUBSIDIARIES FOR THE YEAR DECEMBER ADVANCED INFOENDED SERVICE PUBLIC COMPANY NOTES TO THE FINANCIAL The nominal amounts andSTATEMENTS fair values of swap and forward contracts as at December 31, are as 31,of2016 FOR THE YEAR ENDED The nominal amountsDECEMBER and fair values swap and forward contracts as at December 31, are as follows:
follows:
Unit: Million Baht
FINANCAIL REPORT
Unit: Million Baht The nominal amounts and fair values of swap and forward contracts as at December 31, are as Consolidated financial statements Consolidated financial statements Unit: Million Baht follows: ** financial statements * Nominal amounts Fair Consolidated Nominal amounts** Fairvalues values* 2016 2015 2016 ** * Nominal amounts Fair values2015 2016 2015 2016Unit: Million 2015Baht Swap contracts 2016 2015 2016 2015 Consolidated financial statements -Swap Purchasing contracts 6,473 8,159 7,174 9,326 contracts Nominal Fair -- Selling contracts 1,308 -** 1,262 Purchasing contracts 6,473 amounts8,159 7,174values*-9,326 2016 2015 2016 2015 - Selling contracts 1,308 1,262 -9,326 Total swap contracts 7,781 8,159 8,436 Swap contracts Total swap contracts 7,781 8,159 8,436 9,326 - Purchasing contracts 6,473 8,159 7,174 9,326 Forward contracts 4,943 8,190 5,025 8,289 -Total Selling contracts 1,308 1,262 Forward contracts 4,943 8,190 5,025 8,289 12,724 16,349 13,461 17,615 Total 7,781 8,159 8,436 9,326 Total swap contracts 12,724 16,349 13,461 17,615 Unit: Million Baht Forward contracts 4,943Separate8,190 5,025 financial statements Unit: Million8,289 Baht Total 12,724 16,349 13,461 17,615 Unit: *Million Baht Nominal Separate amounts** Fair values financial statements 2016 2015 2016 2015 ** * Nominal amounts Fair values Separate financial statements Unit: Million Baht Swap contracts 2016 2015 2016 2015 Nominal amounts** Fair values* Separate financial statements -Swap Purchasing contracts 4,511 8,159 5,140 9,326 contracts ** Nominal Fair Forward contracts 89 amounts 147 91values*2015 153 - Purchasing contracts 4,511 8,159 5,140 9,326 2016 2015 2016 2016 2015 2016 2015 Forward contracts 89 147 91 153 Total 4,600 8,306 5,231 9,479 Swap Total contracts 4,600 8,306 5,231 9,479 contracts 8,159of the original 5,140 9,326the *- Purchasing The fair value of swap and forward contracts is4,511 the adjusted value contracts which Forward contracts 89 147 91 153the entered commercial banks with the adjusted market price. of the contracts reporting which period in * Company The fair value of with swapthe and forward contracts is the valueAtofthe theend original Total 4,600 8,306 5,231 9,479 order to reflect the with current of the contracts. Company entered the value commercial banks with the market price. At the end of the reporting period in order to reflect the current value of the contracts. * The The nominal fair valueamount of swap forward contracts is the adjusted valueofofthe theoriginal original contracts contracts which which the the ** of and swap and forward contracts is the value Company entered withof theswap commercial banks contracts withmust the market price. At the of thecontracts reportingwhich periodthe in entered with the commercial banks and be repaid at the date. ** Company The nominal amount and forward is the value of maturity the end original order to reflect thewith current of the contracts. Company entered the value commercial banks and must be repaid at the maturity date.
Credit risk ** The risk nominal amount of swap and forward contracts is the value of the original contracts which the Credit Company entered with the commercial banks and must be repaid at the maturity date. Credit risk is the potential financial loss resulting from the failure of a customer or a Credit risk istothesettle potential financialand losscontractual resulting from the failure of aGroup customer counterparty its financial obligations to the and orthea Credit risk risk Credit counterparty to when settle they its financial Company as and fall due. and contractual obligations to the Group and the Company as and when they due. loss resulting from the failure of a customer or a Credit risk is the potential fall financial Management has a credit policy in place the exposure to credit risk is monitored on the an counterparty to settle its financial andand contractual obligations to the Group and Management has a credit policy in place and the exposure to credit risk is monitored on ongoing Credit are performed on all customers requiring credit overan a Companybasis. as and whenevaluations they fall due. ongoingamount. basis. Credit are performed all were customers requiringconcentrations credit over a certain At the evaluations end of the reporting period on there no significant certain the endpolicy of theinreporting there were no significant concentrations of creditamount. risk. hasAta credit Management place andperiod the exposure to credit risk is monitored on an of credit risk. ongoing basis. Credit evaluations are performed on all customers requiring credit over a Liquidity risk At the end of the reporting period there were no significant concentrations certain amount. Liquidity risk of credit risk. The Group and the Company monitor its liquidity risk and maintain a level of cash and The Group and the Company monitor its liquidity risk and maintain a level of cash and cash equivalents Liquidity risk Liquidity risk deemed adequate by management to finance the Group’s and the cash equivalents deemed to finance the flows. Group’s and the Company’s operations and toadequate mitigate by the management effects of fluctuations in cash Company’s operations and to mitigate the effects of fluctuations in cash flows. The Group and the Company monitor its liquidity risk and maintain a level of cash and cash equivalents deemed adequate by management to finance the Group’s and the Company’s operations and to mitigate the effects of fluctuations in cash flows.
201
Advanced Info Service Public Company Limited
- 79 - 79 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND FOR THE YEAR ENDED DECEMBER 31, 2016 NOTES TO THE FINANCIAL STATEMENTS ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND FOR THE YEAR ENDED DECEMBER 31, 2016 NOTES TO THE FINANCIAL STATEMENTS Fair values ofSERVICE financialPUBLIC assets and liabilities ADVANCED INFOENDED 31, 2016 LIMITED AND FOR THE YEAR DECEMBER COMPANY NOTES TO THE FINANCIAL STATEMENTS Fair values of financial assets and liabilities Financial assets and liabilities measured at fair value in FOR THE YEAR ENDED DECEMBER 31, 2016
Fair values of financial assets and liabilities
ITS SUBSIDIARIES ITS SUBSIDIARIES ITS SUBSIDIARIES ITS SUBSIDIARIES
the consolidated statement of financial position as at December 31,liabilities 2015 are as follows: (December 31, 2016: nil) Fair values of financial assets and Financial assets and liabilities measured at fair value in the consolidated statement of financial position as at December 31, 2015 are as follows: (December 31, 2016: nil) Baht Unit:statement Million Fair values of financial assets and liabilities Unit: Million Baht Financial assets and liabilities measured at fair value in the consolidated of Consolidated financial statements financial position as at December 31, 2015 are as follows:financial (December 31, 2016: nil) Baht Consolidated statements Unit: Million Carrying amount value Financial assets and liabilities measured atConsolidated fair value financial in the Fair consolidated statement of statements Fair2 value31,Level 1 (December Level 3 Million financial position as at December 31, amount 2015 are as Level follows: nil)Total Unit: Baht Carrying amount Carrying Fair value 2016:
- 80 -
Annual Report 2016
202
FINANCIAL REPORT
Current assets Level 1 financial Level305 Level 3 Total305 Consolidated statements Level Level 22 Level Total Available-for-sale investments 305 - 1 Carrying amount Fair value Unit: Million Baht Current assets Consolidated statements Level Level305 2 Level Total Available-for-sale investments 305 - 1 financial - 3 305 Financial assets and liabilitiesCarrying not measured and separate amountat fair value in the consolidated Fair value Current assets statement of financial position as at305 December 31,Level are- as Available-for-sale investments 305 -disclosure) 305 1 follows: Levelconsolidated 2(fair value Level 3and separate Total Financial assets and liabilities not measured at fair value in the Current assets statement of financial position as at December 31, are as follows: (fair valueUnit: disclosure) Million Baht Available-for-sale investments 305 305 - and 305 Financial assets and liabilities not measured at fair value in the consolidated separate Consolidated financial statements disclosure) statement of financial position as at December 31, are as follows: (fair valueUnit: Million Unit: MillionBaht Baht amountat fair value in the consolidated Fair value Financial assets and liabilitiesCarrying not measured and separate Consolidated financial statements Level 1 financial Levelstatements 2(fair value Leveldisclosure) 3 Million Total Consolidated statement of financial position as at December Baht Carrying amount 31, are as follows:Fair value Unit: As at December 31, 2016 Consolidated financial statements Fair value Level Level Level 3 Total Swap and forward contracts 12,776amount - 1 - 2 13,461 13,461 Carrying Carrying amount Fair value Unit: Million Baht As at December 31, 2016 Debentures 31,600 32,082 32,082 Level 1 Level 2 Level 3 Total Consolidated Level Level 2 Level 3 Total Swap and forward contracts 12,776 - 1 financial - statements 13,461 13,461 Carrying amount Fair value As at December 31, 2016 Debentures 31,600 32,082 32,082 As at December 31, 2015 Swap and forward contracts 12,776 - 1 - 2 13,461 13,461 Level Level Level 3 Total Swap and forward contracts 16,349 17,615 17,615 Debentures 31,600 32,082 32,082 2016 As at December 31, 2015 Debentures 16,600 17,958 17,958 Swap and forward contracts 12,776 13,461 13,461 16,349 17,615 17,615 As at December 31, 2015 Debentures 31,600 32,082 32,082 16,600 17,958 17,958 Unit: Million Baht Swap and forward contracts 16,349 17,615 17,615 Separate financial statements Debentures 16,600 17,958 17,958 As at December 31, 2015 Unit: Million Baht Carrying amount Fair value 17,615 Swap and forward contracts 16,349 17,615 Separate financial statements Level Level 2 Level Total Debentures 16,600 - 1 17,958 - 3 Million 17,958 Baht Carrying amount Fair value Unit: Unit: Million Baht As at December 31, 2016 Separate financial statements Level 1 Level 2 Level 3 Total Swap and forward contracts 4,600 5,231 5,231 Carrying amount Separate financial statements Fair value Unit: Million Baht As at December 31, 2016 Separate statements Level 1 Level 2 value Level 3 Total Swap and forward31, contracts 4,600 - financial - Fair 5,231 5,231 As at December 2015 Carryingamount amount Carrying Fair value As at December 31, 2016 Swap and forward contracts 8,306 9,479 9,479 Level Level-- 22 Level 33 Total Total Swap and forward31, contracts 4,600 - 11 5,231 5,231 Level Level Level As at December 2015 As at December 2016 Swap and forward31, contracts 8,306 9,479 9,479 As at December 2015 Swap and forward31, contracts 4,600 5,231 5,231 Swap and forward contracts 8,306 9,479 9,479 As at December 31, 2015 Swap and forward contracts 8,306 9,479 9,479
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Fair Fair value value hierarchy hierarchy The table above analyses recurring fair value measurements for financial assets. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group and the Company can access at the measurement date. Level 2: other inputs than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability. The Group determines Level 2 fair values for available-for-sale investments using a discounted cash flow technique, which uses contractual cash flows and a market-related discount rate.
FINANCAIL REPORT
For disclosure purposes, the Group determines Level 2 fair values for traded debentures have been determined based on quoted selling prices from the Thai Bond Market Association at the close of the business at the end of the reporting period. For disclosure purposes, the Group and the Company determine Level 3 fair values for fair value of swap and forward contracts were calculated using the rates quoted by the Group’s and the Company’s bankers which were based on market conditions existing at the statement of financial position date. The fair value of accounts receivable and accounts payable - trade and others is taken to approximate the carrying value. The fair value of loans to and loans from related is taken to approximate the carrying value because most of these financial instruments bear interest at market rates. The fair value of long-term borrowings is taken to approximate the carrying value because most of these financial instruments bear interest at market rate.
203
Advanced Info Service Public Company Limited
- 81 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES ADVANCED INFOFINANCIAL SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 FOR THE YEAR ENDED DECEMBER 31, 2016
36. COMMITMENTS 36. COMMITMENTSWITH WITHNON-RELATED NON-RELATEDPARTIES PARTIES 36.
COMMITMENTS WITH NON-RELATED PARTIES
Commitments with non-related parties as at December 31, are as follows: Commitments with non-related parties as at December 31, are as follows:
Non-cancellable operating lease Non-cancellable commitments operating lease commitments Within one year Withinone oneyear yearbut within five years After After one five year yearsbut within five years After Total five years Total Other commitments Other commitments Forward and swap contracts Forward and swap contracts Bank guarantees: Bank guarantees: - Spectrum licenses payable - Others Spectrum licenses payable TotalOthers Total
2016
14,927 14,927 129 129 50 50 1 1 -
2015
2016
21,174 21,174 385 385 82 - 82 3 3
-
1,880 1,880 15 - 15 -
2,025 2,025 23 23 12 12
-
7,236 7,236 37 37
5,146 5,146 124 124
-
1 1
Consolidated Consolidated Consolidated financial statements financial statements financial statements 2016 2015 2016 2015 2016 2015
Unit: Million
Unit: Million Separate Unit: Million Separate financial statements Separate financial statements 2016 2015 financial statements 2016 2015 2015
1 1
-
31 31
33 33
507 507 1 17 7
MillionBaht Baht Unit:Unit: Million Unit: Million Baht Separate Separate Separate financial statements financial statements financial statements 2016 2015 2016 2015 2016 2015
3,101 3,101 2,750 2,750 74 74 5,925 5,925
2,099 2,099 2,339 2,339 6 6 4,444 4,444
124 124 238 - 238 - 362 362
221 221 56 - 56 - 277 277
11,416 11,416 94,275 94,275 1,687 1,687 107,378 107,378
16,349 16,349 21,928 21,928 1,052 1,052 39,329 39,329
4,600 4,600 - 227 227 4,827 4,827
8,306 8,306 - 259 259 8,565 8,565
- 82 - 82 -
Annual Report 2016
204
FINANCIAL REPORT
Capital commitments Capital commitments Unrecognized contractual commitments Unrecognized contractual commitments Buildings and equipment Buildings Thai Bahtand equipment ThaiDollar Baht US US Dollar Yen Yen Euro Euro Singapore Dollar Singapore Dollar Service maintenance Service maintenance Thai Baht Thai Baht US Dollars US YenDollars Yen Purchase orders for goods and supplies Purchase orders for goods and supplies Thai Baht Thai Baht US Dollar US Dollar
Consolidated Consolidated financial statements Consolidated financial statements 2016 2015 financial statements 2016 2015
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
agreements Significant agreements -
The Group has entered into lease and related service agreements for office space, cars, computers and base station for periods ranging from 1 year to 15 years with options to renew.
-
The Group has entered into a service agreement with a company, for the Group to receive the services relating to network station and other general services as stated in the agreement. The Group shall pay a service fee for the services at the rate as stated in the agreement. The services will be run until terminated by either party with 90 days written notice.
37. LIABILITIES 37. CONTINGENT CONTINGENT LIABILITIES
FINANCAIL REPORT
Pursuant to the letter dated January 18, 2013, the Revenue Department challenged the Company and Digital Phone Company Limited (“DPC”), a subsidiary, to pay surcharge of Baht 128 million and Baht 6 million, respectively, regarding the withholding tax on revenue sharing payment after excise tax deduction by giving the opinion that the excise tax is a part of revenue sharing. Therefore, the Company and DPC will be liable to pay the shortage of withholding tax amount of excise tax which came from the revenue sharing payment without excise tax deduction. The Company and DPC have submitted the appeal to the Commission of Appeal. At present, these cases are pending on the consideration process of the Commission of Appeal.
38. AND LITIGATIONS LITIGATIONS 38. SIGNIFICANT SIGNIFICANT EVENTS, EVENTS, COMMERCIAL COMMERCIAL DISPUTES DISPUTES AND The The Company 1) The deduction of excise tax from the revenue sharing between the Company and TOT Public Company Limited (“TOT”) On January 22, 2008, TOT submitted a dispute under the black case no. 9/2551 to the Arbitration Institute, the Alternative Dispute Resolution Office, Office of the Judiciary demanding the Company to pay additional payment of revenue sharing under the Cellular Mobile Phone Contract in the amount of Baht 31,463 million plus interest at the rate of 1.25 percent per month computing from the default date on January 10, 2007 until the full amount is paid. This amount is the same as an excise tax that the Company had delivered to the Excise Department during January 28, 2003 to February 26, 2007 and deducted it from revenue sharing according to the resolution of the Cabinet dated February 11, 2003. Thus, the Company has fully complied with the Cabinet’s resolution dated February 11, 2003 and this practice is the same as other operators in mobile phone or cellular radio telecommunication industries according to the resolution of the Cabinet. Moreover, TOT had sent letter no. Tor Sor Tor. Bor Yor. /843 dated March 10, 2003 stating that the Company has fully complied with the Cabinet’s resolution and the Company’s burden remains at the same percentage rate as specified in the contract and the submission of that excise tax return shall not affect the terms of the contract.
205
Advanced Info Service Public Company Limited
- 83 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On May 20, 2011, the Arbitral Tribunal dismissed the case by giving the reason which can be summarized that the Company was not in breach of the Agreement since the Company has completely made the payment of the revenue sharing and all debt was fully paid. Therefore, TOT has no right to re-claim for the alleged deficit amount. On September 22, 2011, TOT submitted the black case no. 1918/2554 to the Central Administrative Court to revoke the Arbitral Tribunal’s award. On August 11, 2016, the Central Administrative Court reached its decision to dismiss such dispute made by TOT to revoke the Arbitral Tribunal’s award. 2) Interconnection agreement in accordance with the announcement of National Telecommunication Commission (“NTC”)
1) 2) 3) 4) 5) 6) 7)
Operators
Total Access Communication PCL. Truemove Company Limited Digital Phone Company Limited CAT Telecom Public Company Limited Advanced Wireless Network Company Limited dtac TriNet Company Limited True Move H Universal Communication Company Limited (Formerly Real Future Company limited)
Effective period
November 30, 2006 onwards January 16, 2007 onwards June 1, 2009 onwards April 7, 2010 onwards April 1, 2013 onwards July 1, 2013 onwards July 1, 2013 onwards
On August 31, 2007, TOT Public Company Limited (“TOT”) filed a lawsuit against NTC to the Central Administrative Court to revoke the said announcement. On September 15, 2010, the Central Administrative Court dismissed the case which TOT filed to revoke the announcement of NTC regarding the Use and Interconnect of Telecommunication Network B.E. 2549. TOT has appealed such dismissal to the Supreme Administrative Court. On February 4, 2008, TOT sent a letter to the Company informing that the Company should wait for the final judgment of the Court. If the Company undertake the IC agreements per the NTC announcement before the final judgment of the Court, TOT shall not recognize the Company’s related actions and the Company must be responsible for such actions. Having considered the said TOT’s letter, related laws and the legal counsel’s opinion, the Company’s management has the opinion that non-compliance by the Company with the IC agreements shall be deemed violating the said NTC announcement. Therefore, the Company has decided to comply with the IC agreements in line with the current legal provisions.
- 84 -
Annual Report 2016
206
FINANCIAL REPORT
According to Telecommunication Business Operation Act B.E. 2544 and the announcement of National Telecommunication Commission (“NTC”) regarding the Use and Interconnect of Telecommunication Network B.E. 2549, the Company has entered into an interconnection (“IC”) agreement with other operators approved by NTC and the effective period of the agreement is listed below:
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
According to the Agreement for operations (“the Agreement”), the Company has to pay the higher of stipulated annual minimum payment or the percentage of service revenues and other benefits that the Company should be received in each year prior to deducting expenses and taxes to TOT. However, the Company has to comply with the regulation while TOT would like to wait for the final judgment of the court. As a result, the Company anticipated entering into a negotiation with TOT in relation to a calculation method of the revenue sharing. The Company calculated the revenue sharing from the net IC revenue which is similar to other operators in the telecommunication industry on a conservative basis. The revenue sharing amount to be paid to TOT is subject to the final judgment of the court in relation to revoke the announcement of NTC and a negotiation between TOT and the Company. The Company will make adjustment in the financial statement in the period when the issue has been agreed. The Company’s management believes that it will not incur significant expense more than the revenue sharing amount which the Company has recorded.
FINANCAIL REPORT
However, after having considered the letter from TOT, the relevant laws and the legal counsel’s opinion, the management of the Company has the opinion that non-compliance with the above Interconnection Agreement would be in conflict with the announcement of NTC regarding the Use and Interconnect of Telecommunication Network. Therefore, the Company decided to comply with the said Agreements which are in line with the current legal provision in force by issuing invoices to collect the interconnection charge from the contractual parties. On December 30, 2008, the Company remitted the revenue sharing incurred from the interconnection of the telecommunication network for February 2007 to June 2008 in the amount of Baht 761 million based on the rate and calculation method of the Company to TOT. Later, the Company and TOT had set up the negotiation committee to seek for the conclusion but it could not be done. TOT required the Company to pay revenue sharing calculated on gross interconnection charges received by the Company at the rate specified in the Agreement without deduction of interconnection charges which the Company had to pay to other operators. Thus, on January 26, 2011, TOT sent a letter demanding the Company had to pay the revenue sharing on the interconnection charges of the Agreement for operations year 17th - 20th in the amount of Baht 17,803 million plus interest at the rate of 1.25% per month. But the Company disagreed and sent a letter opposing the claim to TOT and the Company submitted the dispute to the Alternative Dispute Resolution Office, the Arbitration Institute ref. black case no. 19/2554 on March 9, 2011 requesting the Arbitral Tribunal to give an award that TOT has no right to claim for such revenue sharing. On July 29, 2014, TOT submitted a dispute no. 55/2557 demanding the Company to pay additional payment for the revenue sharing on the interconnection charges of the operation years 21st - 22nd in the amount of Baht 9,984 million plus interest at 1.25% per month on its outstanding and computing from the default date until the full amount is paid. In addition, TOT requested this case to be under the same consideration with the black case no. 19/2554 to the Arbitral Tribunal.
207
Advanced Info Service Public Company Limited
- 85 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On August 23, 2016, the Company submitted the dispute to the Alternative Dispute Resolution Office, the Arbitration Institute, under the black case no. 83/2559 requesting the Arbitral Tribunal to give an award on the ground that TOT had no right to claim for such revenue sharing on the interconnection charges of the operation years 23rd - 25th in the amount of Baht 8,368 million plus interest at 1.25% per month on its outstanding amount for each year and the Company requested this case to be under the same consideration with the black case no. 55/2557. Currently, the dispute has been considered by the Arbitration process. 3) Obligations of the bank guarantees in connection with the Agreement for operations (“the Agreement”) According to the Agreement, the Company has the duties to deliver the bank guarantees to TOT Public Company Limited (“TOT”) to secure the payment of the minimum revenue sharing for each operation year and shall recover the bank guarantee of the past operation.
On May 11, 2011 and October 5, 2012, the Company submitted the disputes to the Alternative Dispute Resolution Office, the Arbitration Institute, under the black case no. 40/2554 and 119/2555 requesting the Arbitral Tribunal to award an order to TOT to return the bank guarantees to the Company because the Company had completely paid the revenue sharing for each operation year and had correctly complied with the law and the relating Agreements in all respects. On February 10, 2014, the Arbitral Tribunal gave the arbitration award to order TOT to return the bank guarantees for the operation year 17th - 21st to the Company. On May 16, 2014, TOT submitted the black case no. 660/2557 to the Central Administrative Court to revoke the Arbitral Tribunal’s award. On May 19, 2014, the Company submitted the black case no. 666/2557 to the Central Administrative Court requesting TOT to return the bank guarantees for the 17th - 21st operation year to the Company according to the arbitration award and pay the bank guarantees fee of Baht 6.65 million which had been paid by the Company to the banks and plus interest at 7.5% per annum computing from the date that Company paid to the banks. Currently, this black case is in the Central Administrative Court procedure.
- 86 -
Annual Report 2016
208
FINANCIAL REPORT
TOT did not return the bank guarantees which have secured the payment of the minimum revenue sharing for the operation year 17th - 21st for a total value of Baht 7,007 million by claiming that the Company had not completely paid the revenue sharing due to the deduction of the revenue sharing for the excise tax and the deduction of the Interconnection Charges. Currently, the dispute has been considered by the Arbitration process.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
4) 900 MHz subscribers migration to 3G 2100 MHz On September 25, 2014, TOT Public Company Limited (“TOT”) submitted a dispute under the black case no. 80/2557 to the Arbitration Institute demanding the Company to pay compensation from the 900 MHz subscribers porting to 3G 2100 MHz provided by its subsidiary in the amount of Baht 9,126 million plus interest at 7.5% per annum from September 25, 2014 until the full amount is paid. On March 29, 2016, TOT submitted the revision to amend the compensation amount from May 2013 to September 2015, the ending of the Agreement for operations for the amount of Baht 32,813 million plus VAT and interest at 1.25% per month from June 2013 until the full amount is paid. Currently, the case is in the Arbitration process. The Company’s management believes that the Company has correctly and fully complied with the related conditions of the Agreement in all respects then the outcome of the dispute should be settled favourably and has no considerable impact on the financial statements of the Company.
FINANCAIL REPORT
5) The claim for additional revenue from the 6th and 7th Amendments to the Agreement for operations (“the Agreement”) On September 30, 2015, the Company submitted the dispute black case no. 78/2558 to the Arbitration Institute, the Alternative Dispute Resolution Office, Court of Justice to decide regarding the 6th Amendment dated May 15, 2001 and the 7th Amendment dated September 20, 2002 to the Agreement for operations to conduct business of Cellular Mobile Telephone that the amendments bind the Company and TOT Public Company Limited (“TOT”) to comply with the amendments until the expiration of the Agreement for operations and the Company has no obligation to pay for the additional revenue according to the letter claimed by TOT to the Company on September 29, 2015 regarding to request the payment of additional revenue in the amount of Baht 72,036 million which TOT has claimed that the 6th and 7th Amendments were material which caused TOT to receive lower revenue than the rate as specified in the Agreement for operations. Currently, the dispute has been considered by the arbitrators which the Company’s management believes that the 6th and 7th Amendments to the Agreement for operations are binding and effective until the expiration of the Agreement for operations on September 30, 2015 because the Company has fully complied with all concerned Agreements. Moreover, the Council of State opined on this matter that the amendments to the Agreement for operations between TOT and the Company, case no. 291/2550 that “…the amendment process of the Agreement for operations which is the administrative contract can be separated from such amendment attached hereto, the amendments have still been in effect as long as it is not revoked or terminated by time, or otherwise...”. Therefore, the outcome of the said dispute should be settled favourably and has no considerable impact on the financial statements of the Company.
209
Advanced Info Service Public Company Limited
- 87 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Later, on November 30, 2015, TOT submitted the dispute black case no. 122/2558 to the Arbitration Institute, the Alternative Dispute Resolution Office, Court of Justice to decrease the amount of the revenue claimed by TOT to Baht 62,774 million according to the percentage adjustability of revenue sharing upon the Agreement for operations. This case is the same as the dispute black case no. 78/2558. 6) Space rental fee for tower and equipment for service under the Agreement for operations (“the Agreement”) On September 30, 2015, TOT Public Company Limited (“TOT”) submitted the dispute black case no. 76/2558 to the Arbitration Institute, the Alternative Dispute Resolution Office Court of Justice to decide regarding the Company rents 11,883 base stations, which used for the installation of towers and telecommunication equipment to provide telecommunication services (Cellular Mobile Telephone Service), under the Agreement for operations for additional 2 years from the expiration of the Agreement for operations. In case that the Company cannot perform such rental, the Company shall pay the said rental and all expenses during additional 2 years in the amount of Baht 1,911 million or place the money to the court.
7) The claim for installation and connection of telecom equipment within 900 MHz frequency band on the Base Site which Digital Phone Co., Ltd. (“DPC”) has transferred the title to CAT Telecom Plc. (“CAT”) subject to the Agreement for operations regarding Cellular Telecommunication Service between CAT and DPC. On April 29, 2016, CAT filed a lawsuit against Advanced Info Services Public Company Limited (“the Company”) to the Central Administrative Court as the black case no.613/2559 for the removal of installed and connected telecom equipment used in cellular telecommunication services within 900 MHz frequency band or other frequencies or other telecom equipment of the Company installed in 95 base sites which DPC has transferred to CAT subject to the Agreement for operations without approval from CAT. Therefore, CAT demanded the Company to compensate for the usage of assets owned by CAT during January 2013 to April 2016 in the amount of Baht 125.52 million plus interest at the rate of 7.5% per annum from the filing date until the compensation is paid in full and to pay for damages from the filing date in the amount of Baht 2.83 million per month plus interest at the rate of 7.5% per annum of the claimed amount in each month to CAT until the removal of telecom equipment is completed.
- 88 -
Annual Report 2016
210
FINANCIAL REPORT
Currently, the dispute has been considered by the arbitrators which the Company’s management believes that the Company has no obligation to pay for the space rental fee for tower and equipment related after the expiration of the Agreement for operations because the Company has rightfully conducted everything in accordance with the Agreement for operations. Therefore, the outcome of the dispute should be settled favourably and has no considerable impact on the financial statements of the Company.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
Currently, this case has been considered by the Central Administrative Court process. The Company’s management believes that the Company has correctly complied with the related conditions of the agreement in all respects then the outcome of this case should not be considerable impact on the financial statements of the Company. Digital Phone Company Limited (“DPC”) 1) The deduction of excise tax from the revenue sharing between DPC and CAT Telecom Public Company Limited (“CAT”) On January 9, 2008, CAT Telecom Public Company Limited (“CAT”) submitted a dispute under the black case no. 3/2551 to the Arbitration Institute, the Alternative Dispute Resolution Office, Court of Justice demanding DPC, a subsidiary, to pay additional payment of revenue sharing under the Digital Personal Communication Network Contract in the amount of Baht 2,449 million plus penalty at the rate of 1.25% per month of the unpaid amount of each year computing from the default date until the full payment is made which total penalty calculated up to December 2007 is Baht 1,500 million, totalling Baht 3,949 million.
FINANCAIL REPORT
Later, on October 1, 2008, CAT submitted the petition to adjust the amount claimed to Baht 3,410 million which calculated from the outstanding revenue sharing up to January 2008 including penalty in amount of Baht 790 million and value added tax in amount of Baht 171 million. This amount is the same as an excise tax that DPC had delivered to the Excise Department during September 16, 2003 to September 15, 2007 and deducted it from revenue sharing according to the resolution of the Cabinet dated February 11, 2003 and DPC has correctly complied with the Cabinet’s resolution dated February 11, 2003 and this practice is the same as other operators in mobile phone or cellular radio telecommunication industries. Moreover, CAT has sent a letter No. CAT 603 (Kor Tor.) 739 notifying DPC to comply with such Cabinet’s resolution. On March 1, 2011, the Arbitral Tribunal dismissed the case by giving the reason which can be summarized that DPC was not in breach of the Agreement since DPC has completely made the payment of the revenue sharing and all debt was paid in full. Therefore, CAT has no right to re-claim for the alleged deficit amount, including the penalty and the value added tax. On June 3, 2011, CAT submitted the black case no. 1259/2554 to the Central Administrative Court to revoke the Arbitral Tribunal’s award. On July 28, 2015, the Central Administrative Court reached its decision to dismiss such dispute made by CAT to revoke the Arbitral Tribunal’s award. On August 25, 2015, CAT appealed such dismissal to the Supreme Administrative Court under black case no. Or 1070/2558. Currently, this case has been considered by the Supreme Administrative Court.
211
Advanced Info Service Public Company Limited
- 89 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
2) The deduction of access charge from revenue sharing between DPC and Telecom Public Company Limited (“CAT”) Pursuant to the resolution of the meeting on January 14, 2004 between TOT Public Company Limited (“TOT”), CAT Telecom Public Company Limited (“CAT”), Digital Phone Company Limited (“DPC”), a subsidiary, and True Move Company Limited (“True Move”) by the Minister of the Information and Communications Technology Ministry, the Chairman, that TOT consented to reduce access charge of mobile phone from revenue sharing which TOT received from CAT in the amount of Baht 22 /number/month to DPC and True Move starting from the 6th operation year as Total Access Communication Public Company Limited (“DTAC”) had received from TOT. On October 12, 2006, TOT sent a letter to CAT that TOT could not reduce access charge of mobile phone to DPC and True Move and demand CAT to pay the access charge that DPC and True Move have deducted as a discount of access charge plus legal interest rate computing from the default date until the fully payment is made.
On October 15, 2009, CAT submitted a dispute under black case no. 96/2552 to the Arbitration Institute, the Alternative Dispute Resolution Office, Court of Justice demanding DPC to pay access charge of mobile phone that DPC had deducted for Baht 22 million (additional consideration of the 11th operation year) including the penalty at the rate of 1.25 percent per month which calculated up to October 15, 2009, total amount of claim is Baht 26 million. On March 23, 2012, the Arbitral Tribunal dismissed the said two disputes by giving the reason which can be summarized that CAT has not yet paid the discount Baht 22/number/month to TOT. Moreover, CAT cannot prove that DPC has breached the Agreement and has made the payment of revenue sharing incorrectly. Therefore, CAT has no right to re-claim for the alleged deficit amount, including the penalty and the value added tax. On June 25, 2012, CAT submitted the black case no. 1016/2555 to the Central Administrative Court to revoke the Arbitral Tribunal’s award, and on September 16, 2014, the Central Administrative Court issued the dismissal order of this case. On October 15, 2014, CAT appealed such dismissal to the Supreme Administrative Court. Currently, this case has been considered by the Supreme Administrative Court.
- 90 -
Annual Report 2016
212
FINANCIAL REPORT
On July 29, 2008, CAT submitted a dispute under black case no. 68/2551 to the Arbitration Institute, the Alternative Dispute Resolution Office, Office of the Judiciary demanding DPC to pay access charge of mobile phone that DPC had deducted for Baht 154 million (additional consideration of the 7th -10th operation year) plus value added tax and interest at the rate 1.25 percent per month of the above principal amount starting from the default date of each year since the 7th -10th operation year until the full payment is made.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
3) Claim for the access charge payment and the deduction of access charge from revenue sharing between DPC, CAT Telecom Public Company Limited (“CAT” ) and TOT Public Company Limited (“TOT”)
FINANCAIL REPORT
On May 9, 2011, TOT Public Company Limited (“TOT”) submitted the black case no. 1099/2554 to the Central Administrative Court against CAT Telecom Public Company Limited (“CAT”) as the defendant no. 1 and Digital Phone Company Limited (“DPC”) as the defendant no. 2 demanding CAT and DPC to pay the access charge amounting to Baht 2,436 million plus value added tax and interest calculated up to May 9, 2011, total amount of claim is Baht 2,954 million plus interest until the full payment is made as follows: 1)
Part of DPC calculating on the amount of the mobile phone number which DPC had rendered the service at the rate of Baht 200/number/month, in the amount of Baht 432 million.
2)
Part of CAT calculating on a half of the revenue sharing which CAT had received from DPC, in the amount of Baht 2,331 million.
3)
The discount of access charge at the rate of Baht 22/number/month that DPC deducted from the revenue sharing, in the amount of Baht 191 million. Part of this demand is the same amount as CAT has claimed according to the dispute under black case no. 68/2551 mentioned above but different in terms of the calculation period and interest.
Later, on July 31, 2014, TOT submitted a petition for revision to adjust the access charge amounting to Baht 5,454 million calculated up to September 16, 2013 which is the date of the Agreement for operation period ended plus valued add tax and interest calculated up to July 10, 2014, plus interest calculated from July 10, 2014 until full payment is made as follows. 1)
Part of DPC calculating on the amount of the mobile phone number which DPC had rendered the service at the rate of Baht 200/number/month, in the amount of Baht 1,289 million.
2)
Part of CAT calculating on a half of the revenue sharing which CAT had received from DPC, in the amount of Baht 3,944 million.
3)
The discount of access charge at the rate of Baht 22/number/month that DPC deducted from the revenue sharing, in the amount of Baht 221 million.
Currently, this case has been considered by the Central Administrative Court. The Company’s management believes that the outcome of this case shall be in favour of DPC and have no material impact on the consolidated financial statements of the Group since DPC has correctly complied with the law and the relating Agreements in all respects.
213
Advanced Info Service Public Company Limited
- 91 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
4) To deliver and transfer ownership of towers and equipment of power supply between DPC and CAT Telecom Public Company Limited (“CAT”) On February 3, 2009, CAT Telecom Public Company Limited (“CAT”) submitted a dispute under the black case no. 8/2552 to the Alternative Dispute Resolution Office, the Arbitration Institute, demanding DPC, a subsidiary, to deliver and transfer ownership of 3,343 towers including 2,653 equipment of power supply under the Digital PCN (“Personal Communication Network Agreement”). In case of incomplete delivery, DPC must reimburse Baht 2,230 million to CAT. DPC considers that all disputed assets, towers and the equipment of power supply are not the property as stipulated in the Agreement. On July 18, 2012, the Arbitral Tribunal gave the arbitration award to dismiss the disputes under the reason that the request by CAT to demand the delivery of the assets from DPC was the premature exercise of legal claim under the contract. On October 25, 2012, CAT submitted the black case no. 2757/2555 to the Central Administrative Court to revoke the Arbitral Tribunal’s award. Currently, this case has been considered by the Central Administrative Court process.
On July 1, 2006, CAT Telecom Public Company Limited (“CAT”) allowed Digital Phone Company Limited (“DPC”), a subsidiary, to reduce roaming fee per minute from Baht 2.10 to Baht 1.10 to be in line with the decrease of mobile phone service fee. The approval has been renewed for three-month period several times until March 31, 2007. After that, CAT did not notify DPC of any changes until on March 24, 2008, CAT had sent a letter to notify DPC to charge roaming fee at Baht 2.10 per minute starting from April 1, 2007. On May 8, 2008, DPC sent a request letter to CAT to reconsider the roaming fee adjustment. The reason for such request was based on the market environment where the prevailing mobile phone service charge to consumers in the market was significantly lower than the specified roaming fee. Such high roaming fee is therefore unreasonable for DPC to provide the roaming service to any operators. In the letter, DPC informed CAT that during the period when CAT is reconsidering the request, DPC will charge roaming fee at Baht 1.10 per minute according to the previous agreed terms and conditions. On March 31, 2009, CAT approved DPC to charge roaming fee at Baht 1.10 per minute during January 1, 2009 - March 31, 2009. Moreover, DPC entered into the national roaming agreement with the Company to charge roaming fee at Baht 1.10 per minute approved by National Telecommunication Commission (“NTC”) on June 16, 2009.
- 92 -
Annual Report 2016
214
FINANCIAL REPORT
5) The reduction of roaming fee between DPC and CAT Telecom Public Company Limited (“CAT”)
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On July 15, 2010, CAT submitted a dispute under black case no. 62/2553 to the Alternative Dispute Resolution Office, the Arbitration Institute, demanding DPC to pay additional payment of revenue sharing of 10th - 12th operation year that DPC reduced roaming fee per minute from Baht 2.10 to Baht 1.10 during April 1, 2007 - December 31, 2008 in amount of Baht 1,636 million plus penalty computing up to March 2010 of Baht 364 million, totalling Baht 2,000 million and penalty at the rate of 1.25 percent per month from April 2010 until the full amount is paid by alleging that CAT approved the said roaming fee reduction up to March 31, 2007 only. On September 12, 2011, CAT submitted a dispute to the Alternative Dispute Resolution Office, the Arbitration Institute; black case no. 89/2554 demanding DPC to make additional payment of revenue sharing of 12th operation year which DPC reduced roaming fee from Baht 2.10 per minute to Baht 1.10 per minute during April 1, 2009 - June 15, 2009 in the amount of Baht 113 million plus penalty at the rate of 1.25% per month from April 1, 2009 until the full amount is paid.
FINANCAIL REPORT
Currently, the dispute has been considered by the Arbitration process. The Company’s management believes that the outcome of this dispute shall have no material impact on the consolidated financial statements of the Group since DPC has correctly complied with the law and the relating Agreements in all respects. 6) The damage arisen from uncollectible international call service charges between DPC and CAT Telecom Public Company Limited (“CAT”) On April 8, 2011, CAT Telecom Public Company Limited (“CAT”) submitted a dispute under black case no. 32/2554 to the Arbitration Institute, the Alternative Dispute Resolution Office, Office of the Judiciary demanding DPC to pay Baht 33 million including interest at the rate of 15% per annum of the claimed amount, total amount of claim Baht 35 million by alleging that DPC has committed a breach of the Digital PCN (Personal Communication Network) Service Agreement due to subscriber fraud on the Digital PCN Service Agreement between DPC and subscribers for 1,209 numbers during 1997 - 2003 causing damages to CAT where CAT was unable to collect the international call service charges occurred from the use of such numbers. On May 28, 2013, the Arbitral Tribunal reached its decision to dismiss such dispute by stating that it is not about breach of the agreement but whether there has been a wrongful act. Therefore, the dispute is not within the Jurisdiction of the Arbitral Tribunal. On September 6, 2013, CAT submitted the black case no. 1767/2556 to the Central Administrative Court to revoke the Arbitral Tribunal’s award. Currently, this case has been considered by the Central Administrative Court process.
215
Advanced Info Service Public Company Limited
- 93 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
7) Revenue sharing on interconnection charge between DPC and CAT Telecom Public Company Limited (“CAT”) On August 24, 2012, CAT submitted a dispute under black case no. 110/2555 to the Alternative Dispute Resolution Office, The Arbitration Institute, demanding DPC to pay additional payment of revenue sharing of the 10th - 14th operation year amounting to Baht 183 million and penalty at the rate of 1.25 percent per month of the above principal amount starting from the default date of each year until the full amount is paid. On April 1, 2014, CAT submitted a dispute under black case no. 26/2557 to the Alternative Dispute Resolution Office, The Arbitration Institute, demanding DPC to pay additional payment of revenue sharing of 15th operation year amounting to Baht 141 million and penalty at the rate of 1.25 percent per month of the above principal amount starting from the default date of each year until the full payment is made. Such amount represents the revenue sharing which CAT calculated on gross interconnection charge received by DPC from other operators at the percentage rate specified in the Agreement without deduction of interconnection charge which DPC has to pay to other operators.
8) Obligations of the bank guarantees in connection with the Agreements for Operations According to the Agreement, Digital Phone Company Limited (“DPC”) has the duties to deliver the bank guarantees to CAT Telecom Public Company Limited (“CAT”) to secure the payment of the minimum revenue sharing for each operation year and shall recover the bank guarantee of the previous operating year. CAT did not return the bank guarantees which have secured the payment of the minimum revenue sharing for the operation year 10th - 14th for a total value of Baht 2,606 million by claiming that DPC had not completely paid the revenue sharing due to the deduction of the revenue sharing for the Excise Tax and the deduction of the Interconnection Charges, the discount of Access Charges and the reduction of the rate of roaming charge where the disputes of which have been pending the consideration of the Arbitral Tribunal. On October 8, 2012, DPC submitted a dispute to the Alternative Dispute Resolution Office, the Arbitration Institute, black case no. 120/2555 requesting the Arbitral Tribunal to award an order to CAT to return the bank guarantees to DPC because DPC has completely paid the revenue sharing for each operation year and has correctly complied with the law and the relating Agreements in all respects. On May 28, 2015, the Arbitral Tribunal reached its decision to award an order to CAT to return the bank guarantees and its bank fees to DPC. Later, on September 15, 2015, CAT has submitted the black case no. 1671/2558 to the Central Administrative Court to revoke the Arbitral Tribunal’s award. Currently, this case has been considered by the Central Administrative Court.
- 94 -
Annual Report 2016
216
FINANCIAL REPORT
Currently, the dispute has been considered by the Arbitration procedures. The Company’s management believes that the outcome of this dispute shall be settled favourably and has no material impact on the consolidated financial statements of the Company since DPC has correctly and fully complied with the law and the related conditions of the Agreement in all respects.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
9) The claim for the usage/revenue arising from the use of telecommunication equipment and telecommunication network during the temporary customer protection period after the Concession ended
FINANCAIL REPORT
On May 20, 2015, CAT Telecom Public Company Limited (“CAT”) filed a lawsuit against the National Broadcasting and Telecommunication Committee Office (“NBTC Office”), National Telecommunication Committee (“NTC”), National Broadcasting and Telecommunication Committee (“NBTC”), Truemove Company Limited (“True Move”), and Digital Phone Company Limited (“DPC”) to the Central Administrative Court black case no.918/2558 to pay for the fees and revenue from the usage of telecommunication equipment and telecommunication network of CAT during the temporary customer protection period, subject to the announcement of NBTC regarding the Temporary Customer Protection Plan Following the Expiration of the Agreement for operations or Telecommunication Service Agreement, calculated from September 16, 2013 to September 15, 2014. The total amounts are as follows: 1)
NBTC Office, NTC and NBTC in the amount of Baht 24,117 million including interest at the rate of 7.5 per annum.
2)
True Move, NBTC Office, NTC and NBTC in the amount of Baht 18,025 million including interest at the rate of 7.5 per annum.
3)
DPC, NBTC Office, NTC and NBTC in the amount of Baht 6,083 million including interest in the rate of 7.5 per annum.
On September 11, 2015, CAT filed a lawsuit to the Central Administrative Court black case no. 1651/2558 claimed for the usage fees and revenue from the usage of telecommunication equipment and telecommunication network of CAT from September 16, 2014 to July 17, 2015, total amounts are as follows:
217
1)
NBTC Office, NTC and NBTC in the amount of Baht 6,521 million including interest at the rate of 7.5 per annum.
2)
True Move, NBTC Office, NTC and NBTC in the amount of Baht 4,991 million including interest at the rate of 7.5 per annum.
3)
DPC, NBTC Office, NTC and NBTC in the amount of Baht 1,635 million including interest in the rate of 7.5 per annum.
Advanced Info Service Public Company Limited
- 95 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On May 27, 2016, CAT filed a lawsuit to the Central Administrative Court black case no. 741/2559 claimed for the usage fees and revenue from the usage of telecommunication equipment and telecommunication network of CAT from July 18, 2015 to November 25, 2015, total amounts are as follows: 1)
NBTC Office, NTC and NBTC in the amount of Baht 2,857 million including interest at the rate of 7.5 per annum.
2)
True Move, NBTC Office, NTC and NBTC in the amount of Baht 2,184 million including interest at the rate of 7.5 per annum.
3)
DPC, NBTC Office, NTC and NBTC in the amount of Baht 673 million including interest in the rate of 7.5 per annum.
10) The claim to the Central Administrative Court for revocation of the NTC order regarding to revenue incurred from the temporary service for customer protection period after the Concession end. On November 16, 2015, Digital Phone Company Limited (“DPC”), filed a lawsuit against the National Broadcasting and Telecommunication Committee (“NBTC”) to the Central Administrative Court under case no. 1997/2558 to revoke NTC resolution which office of the NBTC has demanded DPC to deliver revenue at remedy period starting from September 16, 2013 to July 17, 2014 in the amount of Baht 628 million. In the same case, on September 16, 2016, NBTC and the National Broadcasting and Telecommunication Committee office (“NBTC office”) filed a complaint to the Central Administrative Court as the Black Case No. 1441/2559 requesting DPC to submit the revenue sharing during remedy period, from September 16, 2013 to July 17, 2014 in the amount of Baht 680 million (including interest up to submitted date by Baht 52 million) plus interest at the rate of 7.5% per annum of the claim amount from the next day of the submit date until DPC deliver all revenue sharing in full. The Company’s management considered that DPC has complied with NBTC announcement regarding the Temporary Customer Protection Plan Following the Expiration of the Agreement for operations or Telecommunication Service Agreement 2012, and the Company has obliged to submit the revenue after deducting any expenses to NBTC but DPC has the expenses more than the revenue incurred from the service. Therefore, DPC has no revenue remaining in order to submit to NBTC as stipulated in the announcement. Presently the said case is in the process of the Central Administrative Court. - 96 -
Annual Report 2016
218
FINANCIAL REPORT
Currently, the dispute has been considered by the Central Administrative Court which the management of the Company believes that DPC has no obligation to pay for the usage fees and revenue from the usage of telecommunication equipment and telecommunication network as claimed by CAT due to DPC has complied in accordance with the announcement of NBTC. Therefore, the outcome of the said dispute should be settled favourably and has no considerable impact on the consolidated financial statements of the Group.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
11) The claim for providing of telecom equipment and the telecommunication networks under the Agreement for operations regarding cellular telecommunication services (“the Agreement”) between CAT Telecom Public Company Limited (“CAT”) and Digital Phone Company Limited (“DPC”) to other operators to use. On June 30, 2016, CAT submitted a dispute under black case no. 57/2559 to the Alternative Dispute Resolution Office, The Arbitration Institute, demanding DPC to remove telecom equipment and the telecommunication networks used in cellular telecommunication services under 2100 MHz and the other telecom equipment owned by Advanced Wireless Network Company Limited (“AWN”) and under 900 MHz owned by Advanced Info Service Public Company Limited (“the Company”) which is installed in 97 base stations subject to the Agreement operated by DPC without the approval from CAT.
FINANCAIL REPORT
In case that DPC does not agree to remove such disputes assets for whatsoever reasons, CAT shall demand DPC to pay in the amount of Baht 4.84 million per month plus interest at the rate of 7.5% per annum from the next day of the submit date of such dispute until the completion date of such removal of telecom equipment and to pay for damages for the consent for AWN and the Company to use its disputed assets which owned by CAT in 97 base stations during January 2013 until June 2016 in the total of Baht 175.19 million plus interest at the rate of 7.5% per annum of the claimed amount and also prohibited DPC to provide such disputed assets to other operator without written consent from CAT. Currently, the dispute has been considered by the Alternative arbitration process. The Company’s management believes that DPC has correctly and fully complied with the related conditions of such Agreement in all respects then the outcome of the said dispute should not be considerable impact on the consolidated financial statements of the Group. AIN Globalcomm Company Limited (“AIN”) The international direct dialling service by using the symbol “+” between AIN and CAT Telecom Public Company Limited (“CAT”) On June 7, 2008, CAT Telecom Public Company Limited (“CAT”) submitted the black case no. 1245/2551 to the Civil Court against Advanced Info Service Public Company Limited (“the Company”) as the defendant no. 1 and AIN Globalcomm Company Limited, a subsidiary, as the defendant no. 2 requesting the Company and the subsidiary to pay compensation with interest rate at 7.5% per annum for damage up to the date of case submission equalling to Baht 130 million. The reason is traffic changing of the international direct dialling service by the Company and the subsidiary during March 1-27, 2007 through the Company’s subscriber by using the symbol “+” dialling from no. 005 of the subsidiary, instead of no. 001 of CAT without the prior notification to subscriber. On September 4, 2008, CAT submitted a petition revision to adjust compensation for Baht 583 million (including interest) because CAT was damaged consecutively until March 7, 2008.
219
Advanced Info Service Public Company Limited
- 97 -
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On November 19, 2008, CAT submitted the request for the order of provisional remedial measure before delivery of judgment to cease the Company and the subsidiary to transfer the traffic 001 or symbol “+” of CAT to traffic 005 of the subsidiary. On February 26, 2009, the Civil Court dismissed the CAT’s request and on March 20, 2009, CAT appealed the dismissal. On August 16, 2012, the Court of Appeal issued an order confirming the dismissal order of the Civil Court and CAT submitted the petition to the Supreme Court on October 19, 2012. On February 3, 2015, the Supreme Court issued an order confirming the dismissal order of the Appeal Court.
On May 24, 2016, the Supreme Court issued an order confirming the dismissal order of the Appeal Court. The Supreme Court’s judgment was read by the Civil Court on September 13, 2016. Advanced Wireless Network Company Limited (“AWN”) The claim for installation and connection of 2100 MHz frequency band telecom equipment of AWN on the Base Site which Digital Phone Co., Ltd. (“DPC”) already transferred the title to CAT Telecom Plc. (“CAT”) subject to the Agreement for Operations regarding Cellular Telecommunication Service between CAT and DPC (“the Agreement”).
- 98 -
Annual Report 2016
220
FINANCIAL REPORT
On December 17, 2009, the Civil Court dismissed the case as the facts cannot be proved that CAT has either an exclusive right to use the symbol “+” or the right to prohibit the Company and AIN to use the symbol “+” and it cannot also been proved that the changing of the connection setting of the international direct dialing service from using the symbol “+” for the code 001 of CAT to “+” for the code 005 of AIN has caused the subscribers who use international direct dialing service to believe that they are using the code 001 of CAT, therefore, the acts of the Company have not infringed any right of CAT and also of AIN which CAT alleged to jointly commit the wrongful act against the Company and have not infringed the right of CAT as well. CAT has appealed to the Court of Appeal on March 10, 2010. Subsequently, on June 27, 2013, the Court of Appeal issued an order confirming the dismissal order of the Civil Court by CAT has submitted the petition to the Supreme Court on September 16, 2013.
ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
On June 30, 2016, CAT filed a lawsuit to the Central Administrative Court as the black case No.1039/2559 against Advanced Wireless Network Company Limited (“AWN”) for the removal of such installed and connected telecom equipment used in cellular telecommunication services within 2100 MHz frequency band or other frequencies or other telecom equipment of AWN installed in 67 base stations which DPC has transferred to CAT subject to the Agreement for Operations without the approval from CAT. Therefore, CAT demanded AWN to pay the damages for the usage of such assets owned by CAT during January 2013 until June 2016 in the amount of Baht 57.53 million including interest at the rate of 7.5% per annum from the filing date until the compensation is paid in full and to pay for damages from the filing date in the amount of Baht 2 million per month plus interest at the rate of 7.5% per annum of the claimed amount regarding damages in each month to CAT until the removal of telecom equipment is completed and also prohibited AWN to install and connect its telecom equipment used in cellular telecommunication services in 2100 MHz frequency band or other frequencies or other telecom equipment of AWN on base sites owned by CAT under the Agreement between CAT and DPC without written consent from CAT.
FINANCAIL REPORT
Currently, the dispute has been considered by the Central Administrative Court process. The Company’s management believes that AWN has correctly and fully complied with the related conditions of the Agreement in all respects then the outcome of the said case should not be considerable impact on the consolidated financial statements of the Group. 39. EVENT EVENT AFTER AFTER THE THE REPORTING REPORTING PERIOD 39. PERIOD Dividends Dividends At the Board of Directors’ meeting held on February 3, 2017, the Board passed a resolution proposing to the Annual General Shareholders’ Meeting the payment of dividends for the year 2016, at the rate of Baht 10.08 per share, Baht 5.79 each of which was paid as an interim dividend on September 1, 2016. The proposed dividends shall be approved by the shareholders.
40. OF FINANCIAL FINANCIAL STATEMENTS STATEMENTS APPROVAL OF 40. APPROVAL These financial statements have been approved for issue by the Board of Directors on February 3, 2017.
221
Advanced Info Service Public Company Limited
- 99 -
Management Discussion and Analysis 2016 Executive Summary
Marked 98% of 4G coverage in one year: 2016 was the year that AIS focused on expanding 4G network and fixed broadband expansion with a total CAPEX of Bt48bn. We launched 4G services on 1800x15MHz in Jan-16 and continued to enhance network capacity and quality: 1) securing 900x10MHz spectrum license, 2) deploying Carrier Aggregation (CA) technology in key cities, and 3) entering to partnership agreement with TOT for the use of additional 2100x15MHz spectrum. During the year, competition has been focusing on handset subsidy to attract new customers as well as to retain the existing base. Through intense competition, mobile revenue improved 1%, driven by improved 4G coverage and higher smartphone adoption.
Improved revenue momentum in 2H amidst intense competition: In 2016, service revenue (excluding IC) grew 1.6%, in line with the full year guidance. However, marketing expense jumped to 10.5% of revenue mainly from handset campaigns (including subsidy for 2G to 3G migration) of Bt10bn in 2016. Network OPEX increased mainly from network expansion and payment of Bt3.8bn to TOT for the use of 2100MHz spectrum, towers, and equipment. EBITDA margin was 39.9% and slightly better than guided mainly due to the delay of TOT partnership while net profit dropped 22% to Bt30,667mn from lower EBITDA and higher license amortization.
Significant events
1. In 4Q16, we started to make a payment to TOT for the commercial trial deal on 2100MHz spectrum amounting to Bt975mn per quarter, in addition to the payments for the use of towers and network equipment amounting to Bt1,400mn per quarter. In 2017, the payment to TOT will be made monthly, totaling Bt2,375mn per quarter, until the final contracts are signed. 2. According to the Royal Decree No. 604 dated 18 April 2016, investment in certain assets during the period from 3 November 2015 to 31 December 2016 can qualify for double depreciation tax benefits. The qualified assets are machinery, equipment, tools, computers software, vehicles, and buildings (excluding land and buildings for residential purposes). These benefits will be recognized over 5-years period starting from 2016. The tax benefit in 2016 is Bt835mn, with an approximately similar amount for the next four years.
Market Environment in 4Q16
In 4Q16, the operators continued to expand 4G network to claim leadership in mobile data while using handset subsidies as a mean to preserve and expand subscriber base. The high-end handset subsidy was pronounced after the launch of iPhone 7 causing a continued high level of industry marketing spending. Although data consumption grew along with the higher smartphone penetration, the monetization of data usage was pressured by the offering of non-stop packages with large data allowance. Meanwhile, the AIS 1-2-call and 7-11 incident posted limited revenue impact to AIS as customers gradually changed their behavior to top-up at other channels such as automatic KIOSKs, other modern trades, and via mPAY application. Annual Report 2016
222
FINANCIAL REPORT
Build up fixed broadband business as new revenue stream: Within this second year of operation, AIS Fibre recorded 301,500 subscribers and covered 28 cities at the end of 2016. The competition on fixed-broadband market has increased. The offerings with short-period discount and better speed at the same price were introduced to attract new demand as well as those seeking upgrade. During the year, we streamlined working process, increased sales force and channels. As a result, AIS Fibre contributed 1.2% of revenue in 4Q16 and achieved 35,000 of subscribers acquisition run rate per month, a level comparable to incumbent players.
Enhance profitability and maintain financial flexibility for future competitiveness: In 2017, service revenue (excluding IC) is expected to grow in a range of 4-5% supported by extensive 3G/4G networks. EBITDA margin is likely to be in a range of 42-44%. CAPEX of Bt40-45bn will be spent mainly on 4G network and selective fixed broadband expansion. New dividend policy is to pay minimum of 70% of net profit from 2017 onwards to preserve financial health and flexibility for future growth. (see the full guidance for FY17 on page 229)
The fixed broadband market continued to expand competitively both in terms of coverage expansion and pricing strategy. Fibre service continued to receive positive perception and good demand from consumers.The competition focused on improving speed and more attractive offering in high-end package.
Operational Summary
FINANCAIL REPORT
In 4Q16, AIS had net addition of 1.2mn subscribers giving the total subscribers of 41mn. Postpaid subscribers were 6.4mn, a net addition of 320,900, and prepaid subscribers were 34.6mn, a net addition of 836,900. The high growth of subscribers was driven mainly by the 4G services and supported by a variety of handset campaigns. In 2H16, we Mobile Business Subscribers Postpaid Prepaid Total subscribers
started to focus more on medium- to high-end smartphones; this, consequently, drove the smartphone adoption to 70%. Blended ARPU increased from Bt248 to Bt251 due to higher number of data subscribers which now represented 57% of total subscriber. As a result, blended VOU grew from 3.0 GB/data sub/month to 3.6 GB. Voice usage continued to decline refleced in blended MOU of 215 minutes from 226 minutes. In 4Q16, AIS Fibre had net addition of 106,500 subscribers, compared to 80,000 and 18,000 in 3Q16 and 4Q15, respectively. As a result, AIS Fibre had total subscribers of 301,500, a net addition of 257,500 in 2016. ARPU was Bt510, improving from Bt498 in the previous quarter.
4Q15
1Q16
2Q16
3Q16
4Q16
5,431,200 33,056,900 38,488,100
5,412,400 33,515,900 38,928,300
5,812,800 33,542,200 39,355,000
6,108,700 33,764,700 39,873,400
6,429,600 34,601,600 41,031,200
68,000 609,400 677,400
-18,800 459,000 440,200
400,400 26,300 426,700
295,900 222,500 518,400
320,900 836,900 1,157,800
612 195 254
608 194 251
608 188 248
597 186 248
600 186 251
330 286 292
320 272 279
313 234 246
305 213 226
296 201 215
2,360 1,910 2,000
2,680 2,030 2,160
3,430 2,380 2,590
4,090 2,670 2,960
4,970 3,200 3,580
N/A
16%
19%
24%
29%
44,000 18,000 615
72,000 28,000 583
115,000 43,000 520
195,000 80,000 498
301,500 106,500 510
Net additions Postpaid Prepaid Total net additions
ARPU (Baht/sub/month) Postpaid Prepaid Blended
MOU (minute/sub/month) Postpaid Prepaid Blended
VOU (MB/data sub/month) Postpaid Prepaid Blended
Device Penetration 4G-handset penetration
Fixed Broadband Business FBB subscribers FBB net addition FBB ARPU (Baht/user/month) 223
Advanced Info Service Public Company Limited
4Q16 Snapshot
FY16 Financial Summary
Revenue In FY16, total revenue (excluding construction) was Bt152,150mn declining 2% YoY from lower handset sales offset by higher service revenue. SIM & device sales were Bt23,924mn, decreasing 14% YoY due to discounts and subsidizes. Hence, handset margin was -4.2% compared to -0.8% in FY15. Service revenue (excluding IC) was Bt122,561mn, increasing 1.6% YoY in line with our guidance. Revenue in 1H was dampened by uncertainty around 900MHz and improved in 2H following the extensive and fast rollout of 4G network. • Voice revenue was Bt51,250mn decreasing 15% YoY as voice usage continued to be substituted by the use of mobile data.
• Non-voice revenue was Bt63,857mn increasing 20% YoY following higher penetration of smartphone. The mobile data consumption grew from 2 GB/data sub/ month last year to the current usage of 3.6 GB while 4G-handset users increased to 12mn. Mobile data revenue in FY16 represented 46% of service revenue (excluding IC), increasing from 37% in FY15. • Fixed broadband revenue was Bt860mn increasing 616% YoY from Bt120mn in FY15 and represented 1.2% of service revenue in 4Q16. The growth came from both the larger subscriber base and the improved ARPU. • International revenues and others were Bt6,594mn decreasing 2.5% mainly due to the declining IDD revenue offset with higher IR revenue from the improved tourism sentiment in 2016. Net Interconnection charges (Net IC) was Bt285mn decreasing from Bt681mn in FY15. The interconnection revenue and cost in 2016 were lower than those in 2015 due to the adjustment of interconnection rate in July-15 from Bt0.45/minute to Bt0.34/minute. Starting January 2017, the new interconnection rate will be Bt0.27/minute. Cost & Expense Total cost (excluding construction) was Bt82,992mn decreasing 2.1% YoY from lower regulatory fee offset by higher D&A, network OPEX and cost of handset subsidies. • Regulatory fee was Bt10,414mn decreasing 26% YoY as the high concession fee ended in 2Q16. Since 3Q16, the percentage of regulatory fee to service revenue (excluding IC) started to become in line with the license fee regulated by the NBTC. In FY16, the percentage was 8.5% compared to 11.7% in FY15. • Depreciation and Amortization was Bt21,253mn, an increase of 5.5% YoY with addition of 900MHz and 1800MHz spectrum amortization offset by fully amortized 2G assets since 3Q15. The amortization of 2100/1800/900MHz licenses was Bt5.5bn in FY16 while the network D&A continued to increase from investments in 4G network.
Annual Report 2016
224
FINANCIAL REPORT
Revenue momentum in 4Q16 has shown an improvement while intense handset subsidy continued in the market. Total revenue was Bt41,319mn, an increase of 3.9% YoY and 11% QoQ driven by 4G subscription and handset campaigns. Sales margin was -3.3%, improved from -16% in 3Q16 due to higher margins from newly-launched smartphones in 4Q16 despite some discounts. Service revenue (excluding IC) was Bt31,617mn, a growth of 5.8% YoY and 3.2% QoQ underpinned by the trend of heavy data consumption, which rose to 3.6GB/data sub/month, together with the revenue growth of fixed broadband business, +64% QoQ, following higher subscriber acquisition and ARPU. Overall cost increased QoQ following the start of TOT 2100MHz commercial trial agreement in Oct-16 which cost Bt975mn/quarter and accounted under network OPEX. Excluding this, network OPEX remained flat QoQ. Regulatory fee remained at 5.8% to service revenue (excluding IC), same as in 3Q16. SG&A increased 9.6% QoQ due to continued high level of handset subsidies and higher bad debt provision. YoY cost increased due to network expansion, handset subsidies, TOT’s partnership cost and new spectrum. As a result, EBITDA dropped by 12% YoY and 1.3% QoQ to Bt15,058mn and EBITDA margin stood at 36.4%. Net profit was Bt6,468mn, a decrease of 40% YoY and 0.9% QoQ.
FINANCAIL REPORT
• Network OPEX was Bt14,810mn increasing 54% YoY mainly due to the payments to TOT and 4G network rollout. This year AIS started to make payments of Bt3,775mn to TOT for the deals on 2100MHz spectrum, towers, and network equipment and facilities. The payment to TOT in 2017 will be a full-year of Bt9,500mn. • Other costs of service were Bt6,216mn decreasing 7.8% YoY mainly due to the change in accounting of cost of fixed broadband from expensing to capitalizing since 1Q16. SG&A expenses were Bt29,776mn, an increase of 48% YoY mainly due to higher marketing expenses. • Marketing expenses were Bt16,012mn increasing 132% YoY mainly from handset subsidies. Marketing expenses to total revenue became 10.5% in FY16 compared to 4.4% in FY15. Excluding the handset subsidy, marketing expenses to total revenue was in the range of 4-4.5%. Income statement (Bt mn) Voice revenue Non-voice revenue Fixed Broadband Others (IR, IDD, other fees) Service revenue (excluding IC) IC revenue sales revenue Total revenues (excluding construction) Regulatory fee Depreciation & Amortization Network Operation Other cost of service Cost of service (excluding IC) IC cost Cost of sale of goods Total cost (excluding construction)
225
Advanced Info Service Public Company Limited
4Q15
3Q16
• General admin expenses were Bt11,812mn slightly increasing 2.5% YoY. • Depreciation and amortization was Bt414mn, an increase of 19% YoY mainly from shop expansion. • Bad debt was Bt1,538mn increasing 17% YoY. Bad debt to postpaid revenue was 3.7% in FY16 compared to 3.4% in FY15 due to the larger postpaid subscriber base. Finance cost were Bt4,236mn increasing 116% YoY from higher debt to fund spectrum payment and CAPEX. The finance costs also included the deferred interest of Bt1.2bn in FY16 for the 1800/900MHz licenses. Net FX gain was Bt277mn increasing from the net gain of Bt229mn in FY15. Most of the gain was a realized gain from payables for network investment. Foreign-currency loans are fully-hedged.
4Q16
%YoY
%QoQ
2015
2016
%YoY
14,085 12,494 12,329 -13% -1.4% 60,547 51,250 -15% 14,174 16,242 17,265 22% 6.4% 53,193 63,857 20% 65 232 380 485% 64% 120 860 616% 1,563 1,659 1,643 5.1% -0.9% 6,760 6,594 -2.5% 29,887 30,626 31,617 5.8% 3.2% 120,621 122,561 1.6% 1,475 1,405 1,387 -6.0% -1.3% 6,794 5,665 -17% 8,422 5,064 8,315 -1.3% 64% 27,798 23,924 -14% 39,784 37,096 41,319 3.9% 11% 155,213 152,150 -2.0% (2,662) (1,769) (1,834) -31% 3.7% (14,116) (10,414) -26% (3,495) (6,156) (6,717) 92% 9.1% (20,146) (21,253) 5.5% (2,672) (4,094) (5,065) 90% 24% (9,620) (14,810) 54% (1,749) (1,518) (1,539) -12% 1.3% (6,742) (6,216) -7.8% (10,578) (13,537) (15,155) 43% 12% (50,624) (52,694) 4.1% (1,349) (1,354) (1,332) -1.2% -1.6% (6,113) (5,380) -12% (8,485) (5,878) (8,592) 1.3% 46% (28,019) (24,918) -11% (20,412) (20,769) (25,079) 23% 21% (84,755) (82,992) -2.1
Income statement (Bt mn) Gross profit Total SG&A Marketing expenses Administrative expenses Bad debt expenses Depreciation Operating profit Net foreign exchange gain (loss) Other income (expense) Finance costs (interest expense & deferred interest) Total Income tax Non-controlling interests Net profit for the period
Operating Profit Depreciation & amortization (Gain) loss on disposals of PPE Management benefit expense Other financial cost EBITDA Recognition of USO fee (pre-tax) Normalized EBITDA EBITDA margin (%) malized EBITDA margin (%)
3Q16
4Q16
%YoY
%QoQ
2015
2016
%YoY
19,372 16,327 16,240 -16% -0.5% 70,457 69,158 -1.8% (5,643) (7,260) (7,961) 41% 9.6% (20,091) (29,776) 48% (2,209) (3,828) (3,988) 81% 4.2% (6,901) (16,012) 132% (3,020) (2,976) (3,278) 8.5% 10% (11,526) (11,812) 2.5% (321) (350) (584) 82% 67% (1,315) (1,538) 17% (93) (106) (111) 19% 4.4% (349) (414) 19% 13,730 9,067 8,279 -40% -8.7% 50,366 39,382 -22% 196 67 6 -97% -91% 229 277 21% 68 94 114 69% 21% 518 442 -15% (597) (1,311) (1,331) 123% 1.6% (1,960) (4,236) 116% (2,598) (1,371) (594) -77% -57% (9,999) (5,175) -48% (7) (17) (6) -16% -65% (2) (23) 847% 10,791 6,529 6,468 -40% -0.9% 39,152 30,667 -22%
4Q15
3Q16
4Q16
%YoY
%QoQ
2015
2016
%YoY
13,730 9,067 8,279 -40% -8.7% 50,366 39,382 3,588 6,262 6,828 90% 9.0% 20,495 21,667 1 - 23 2,784% N/A 303 23 (74) (39) (41) -45% 4.1% (209) (150) (41) (33) (32) -21% -2.3% (178) (181) 17,204 15,257 15,058 -12% -1.3% 70,776 60,741 - - - - - - 2,208 17,204 15,257 15,058 - - 70,776 62,949 43.2% 41.1% 36.4% 45.6% 39.9% 43.2% 41.1% 36.4% 45.6% 41.4%
Normalized net profit (Bt mn)
4Q15
Net profit for the period Recognition of USO fee after tax Recognition of deferred tax assets Recognition of tax incentive Normalized net profit for the period
10,791 - - - 10,791
3Q16 6,529 - - - 6,529
4Q16 6,468 - - (835) 5,633
%YoY
%QoQ
2015
2016
-40% - - - -48%
-0.9% - - - -14%
39,152 - - - 39,152
30,667 1,767 (919) (835) 30,680
-22% 5.7% -92% -28% 1.5% -14% -11%
%YoY
Annual Report 2016
-22% -22%
226
FINANCIAL REPORT
EBITDA (Bt mn)
4Q15
FINANCAIL REPORT
Financial Position (Bt mn/% to total asset) Cash & cash equivalent Bank dep. & ST investment Trade receivable Inventories Others Current Assets Spectrum license Network and PPE Intangible asset Deferred tax asset Others Total Assets Trade payable ST loan & CP of LT loans Accrued R/S expense Other Current Liabilities Debenture & LT loans Others Total Liabilities Retained earnings Others Total Equity
4Q15
4Q16
9,865 5.4% 11,226 4.1% 4,752 2.6% 2,963 1.1% 11,030 6.1% 11,377 3.9% 5,059 2.8% 3,085 1.1% 7,301 4.0% 3,248 1.2% 38,007 21% 31,899 12% 51,791 28% 115,378 42% 84,291 46% 118,271 43% 3,192 1.8% 4,099 1.5% 1,252 0.7% 2,618 0.9% 3,229 1.8% 3,404 0.7% 181,761 100% 275,670 100% 14,358 7.9% 17,737 6.4% 12,856 7.1% 11,685 4.2% 5,364 3.0% 5,361 1.9% 24,956 14% 34,545 13% 57,533 32% 69,328 25% 52,416 29% 87,130 32% 23,319 13% 76,504 28% 133,268 73% 232,962 85% 22,813 12% 16,971 6.2% 25,680 14% 25,737 9.3% 48,493 27% 42,708 15%
Key Financial Ratio Interest-bearing debt to equity (times) Net debt to equity (times) Net debt to EBITDA (times) Current Ratio (times) Interest Coverage (times) Debt Service Coverage Ratio (times) Return on Equity
4Q15
1.32 1.02 0.70 0.66 30 3.9 82%
Debt repayment schedule
227
Advanced Info Service Public Company Limited
2.30 1.97 1.38 0.46 14 3.4 67%
License payment schedule
Bt mn Debenture Loan 1800MHz 900MHz 2017 397 11,001 10,247 2018 - 2,799 10,247 4,020 2019 7,789 3,364 - 4,020 2020 - 23,929 - 59,574 2021 1,776 10,129 - 2022 - 9,882 - 2023 7,820 5,350 - 2024 6,638 - - 2025 - - - 2026 7,180 - - -
Source of Fund Use of Fund Operating cash flow 71,538 CAPEX & Fixed asset Proceed of LT borrowings 41,154 Dividend paid Net Proceed of ST borrowings 700 Payment of spectrum license Net change in investments 303 Repayment of LT borrowings Interest received 215 Income tax paid Sale of property 17 Finance cost & Financial lease paid Investment in joint venture Cash increase Total 113,927 Total
Fitch National rating: AA+ (THA), Outlook: Stable S&P BBB+, Outlook: Negative
2.94 2.57 1.53 0.49 16 1.7 90%
4Q16
Figures from P&L are annualized YTD.
Source and use of fund : FY16
Credit Rating
3Q16
(Bt mn) 47,554 36,509 8,069 7,699 9,902 2,818 15 1,361 113,927
Profit In FY16, EBITDA was Bt60,741mn declining 14% YoY mainly due to the payments to TOT and higher marketing expenses for handset subsidies. Consolidated EBITDA margin was at 39.9%, slightly better than the guidance but declining from 45.6% in FY15. The higher D&A and finance costs offset by the lower income tax expense (see significant events on page 1) caused the net profit to be Bt30,667mn, declining 22% YoY. Normalizing the one-time recognitions of USO fee and deferred tax asset in 1Q16 and the tax benefit in 4Q16, normalized net profit would be Bt30,680mn, a decline of 22% YoY. Net profit margin stood at 20.2% compared to 25.2% in FY15.
Cash Flow Despite softer earnings, AIS’ operating cash flow (after tax) was stable at Bt61,635mn. CAPEX was Bt47,554mn in 2016, compared to Bt32,108mn in 2015, following the nationwide 4G coverage and 3G enhancement. CAPEX to service revenue (excluding IC) was 39%, up from 27% in 2015. Also, AIS paid Bt8,069mn for the 1st installment of the 900MHz spectrum license to the NBTC in Jun-16. This resulted in a free cash flow of Bt6,012mn. AIS had a net borrowing of Bt34,155mn and paid dividend for the performance of 2H15-1H16 totaling Bt36,509mn. In summary, AIS had a net cash increase of Bt1,361mn resulting in an outstanding cash of Bt11,226mn as of Dec-16.
Annual Report 2016
228
FINANCIAL REPORT
Financial position As at Dec-16, AIS had Bt275,670mn of total assets, of which the values of PPE and licenses contributed around 85%. Total assets increased 52% YoY due to the acquisition of the 900MHz spectrum license in June 2016 and the network investments on 4G. The current assets were Bt31,899mn dropping 16% YoY mainly from the lower handset inventory while trade account receivables increased 3.1% YoY. Total liabilities were Bt232,962mn increasing 75% YoY mainly from the the 900MHz spectrum license and higher debt. Interest-bearing debt increased from Bt64bn in 2015 to
Bt98bn in 2016 to support spectrum payments and network investments. Total equity was Bt42,708mn declining 12% YoY from lower retained earnings, following a decline in net profit. Overall, the company’s ability to service debt remained healthy with net debt to EBITDA ratio of 1.38x and interest coverage ratio of 14x. Our credit rating was maintained at BBB+ from S&P, in the range of investment grade. Meanwhile liquidity remained fair with current ratio of 0.46x, mainly weighted by payable on network investment.
2017 MANAGEMENT OUTLOOK & STRATEGY Service revenue (excluding IC) Handset sales Consolidated EBITDA margin CAPEX Dividend payout
• increase 4-5% YoY • increase with near-zero margin • 42-44% • Bt40-45bn • minimum 70% of net profit
Continue to grow with improvement in revenue In 2016, after acquiring 1800MHz, AIS has quickly built a and EBITDA
FINANCAIL REPORT
Build strong leadership in mobile data
nationwide 4G network covering 98% population in response to the accelerating demand for quality mobile data. We expect that the demand for faster speed will continue strongly, and will be more efficiently served by 4G network. To build on our leadership in mobile data, the investment in 2017 will focus on 4G capacity including the expanded deployment of 2-Carrier and 3-Carrier Aggregation in key cities. Also, we will continue to encourage further smartphone adoption and migrating 2G users through targeted handset subsidies.
In summary, we expect the consolidated service revenue (excluding IC) to improve 4-5% YoY. With our focus on acquiring quality subscribers, we expect an improvement of handset sales with a near-zero margin contribution. This will partially be offset with a full-year recognition of payments to TOT for the use of spectrum, towers, and equipment. Overall, we expect the consolidated EBITDA margin to improve and stay in the range of 42-44%. The total cash CAPEX (excluding spectrum payment) is expected to be in the range of Bt40-45bn for both mobile and fixed broadband.
Selectively expand new fixed broadband coverage and uplift utilization New dividend policy: a minimum payout of 70% Since the launch in April 2015, AIS Fibre has achieved coverage of about 5.2mn home pass in 28 cities and serves 301,500 subscribers with Bt10bn cumulative CAPEX. Striving to become a significant player in the next three years, we continue to expand our business and build stronger operational foundation. Starting the third year of operation in 2017, we will pursue selective expansion of new service areas with due consideration to demand and return on investment. At the same time, we will also put focus on increasing capacity utilization in the existing coverage areas through more effective sales and distribution channels, while remaining competitive in fibre pricing. We expect investment in fixed broadband of around Bt5bn this year.
AIS is committed to driving long term growth while delivering return to shareholders. We place importance in maintaining strong financial health and flexibility to pursue future growth. The dividend policy is thus revised to a minimum 70% payout of net profit from 2017 onwards. By preserving cash flow, we ensure that we have the financial flexibility to lead, compete, and pursue growth prospect in any changing circumstances. The dividend payment shall still be made twice a year and is based on consolidated earnings and subjected to the availability of retained earnings on the separate financial statements. In all cases, dividend payment shall depend on cash flow, investment plan including any other future obligations of the Company and/or subsidiaries. Such dividend shall not adversely affect the Company and subsidiaries ongoing operations.
Disclaimer Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue” “plan” or other similar words. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements 229
Advanced Info Service Public Company Limited