7. Capital Structure

7.1 Securities of the Company

  (1) Registered capital and Paid up capital

  Registered Capital : 4,997,459,800 Baht divided by

  Common shares 4,997,459,800 shares and par 1 Baht per share

  Paid up Capital : 2,973,095,330 Baht divided by

  Common shares 2,973,095,330 shares and par 1 Baht per share

  (2) Debentures

  As of 31 December 2012, the Company has three (3) debentures which
  have not reached their maturity date and which are listed on the Thai
  Bond Market Association and Bond Market Exchange (BEX):

1.  Debentures of Advanced Info Service Public Company Limited No.
    1/2006 Lot No 3 due 2013 (AIS139A)

  --------------------- -------------------------------------------------
  Type of security      : Unsubordinated and unsecured debentures with a
                        debenture holders’ representative.

  Starting date on BEX  : 20 November 2006

  Term to maturity      : Seven (7) years from issuing date

  Value of debentures   : 4,000,000,000 Baht

  Number of debentures  : 4,000,000 units

  Par value per unit    : 1,000 Baht

  Offering price per    : 1,000 Baht
  unit                  

  Issued date           : 7 September 2006

  Maturity date         : 7 September 2013

  Coupon rate and       : Interest at the rate of 6.00% per annum to be
  interest payment date paid every six months from issuing date: 7
                        September and 7 March of each year.

  Registrar             : TMB Bank Plc.

  Outstanding amount as : 4,000,000 units
  of 31 December 2011   

  Outstanding value as  : 4,000,000,000 Baht
  of 31 December 2011   

  Credit rating         : AA
  --------------------- -------------------------------------------------

2.  Debentures of Advanced Info Service Public Company Limited No.
    1/2008 due 2013 (AIS134A)

+--------------------+-------------------------------------------------+
| Type of security   | : Unsubordinated and unsecured debentures with  |
|                    | a debenture holders’ representative.            |
+--------------------+-------------------------------------------------+
| Starting date on   | : 20 May 2008                                   |
| BEX                |                                                 |
+--------------------+-------------------------------------------------+
| Term to maturity   | : Five (5) years from issuing date              |
+--------------------+-------------------------------------------------+
| Value of           | : 4,000,000,000 Baht                            |
| debentures         |                                                 |
+--------------------+-------------------------------------------------+
| Number of          | : 4,000,000 units                               |
| debentures         |                                                 |
+--------------------+-------------------------------------------------+
| Par value per unit | : 1,000 Baht                                    |
+--------------------+-------------------------------------------------+
| Offering price per | : 1,000 Baht                                    |
| unit               |                                                 |
+--------------------+-------------------------------------------------+
| Issued date        | : 30 April 2008                                 |
+--------------------+-------------------------------------------------+
| Maturity date      | : 30 April 2013                                 |
+--------------------+-------------------------------------------------+
| Coupon rate and    | : 1^(st) - 2^(nd) year, interest at the rate of |
| interest payment   | 4.00% per annum and                             |
| date               |                                                 |
|                    | 3^(rd) - 5^(th) year, interest at the rate of   |
|                    | 4.90% per annum                                 |
|                    |                                                 |
|                    | To be paid every three months from issuing      |
|                    | date: 30 January, 30 April, 30 July, and 30     |
|                    | October of each year                            |
+--------------------+-------------------------------------------------+
| Registrar          | : TMB Bank Plc.                                 |
+--------------------+-------------------------------------------------+
| Outstanding amount | : 4,000,000 units                               |
| as of 31 December  |                                                 |
| 2011               |                                                 |
+--------------------+-------------------------------------------------+
| Outstanding value  | : 4,000,000,000 Baht                            |
| as of 31 December  |                                                 |
| 2011               |                                                 |
+--------------------+-------------------------------------------------+
| Credit rating      | : AA                                            |
+--------------------+-------------------------------------------------+

3.  Debentures of Advanced Info Service Public Company Limited No.
    1/2009 due 2014 (AIS141A)

+--------------------+-------------------------------------------------+
| Type of security   | : Unsubordinated and unsecured debentures with  |
|                    | a debenture holders’ representative.            |
+--------------------+-------------------------------------------------+
| Starting date on   | : 4 February 2009                               |
| BEX                |                                                 |
+--------------------+-------------------------------------------------+
| Term to maturity   | : Five (5) years from issuing date              |
+--------------------+-------------------------------------------------+
| Value of           | : 2,500,000,000 Baht                            |
| debentures         |                                                 |
+--------------------+-------------------------------------------------+
| Number of          | : 2,500,000 units                               |
| debentures         |                                                 |
+--------------------+-------------------------------------------------+
| Par value per unit | : 1,000 Baht                                    |
+--------------------+-------------------------------------------------+
| Offering price per | : 1,000 Baht                                    |
| unit               |                                                 |
+--------------------+-------------------------------------------------+
| Issued date        | : 23 January 2009                               |
+--------------------+-------------------------------------------------+
| Maturity date      | : 23 January 2014                               |
+--------------------+-------------------------------------------------+
| Coupon rate and    | : 1^(st) - 2^(nd) year, interest at the rate of |
| interest payment   | 4.00% per annum,                                |
| date               |                                                 |
|                    | 3^(rd) - 4^(th) year, interest at the rate of   |
|                    | 5.00% per annum and                             |
|                    |                                                 |
|                    | 5^(th) year, interest at the rate of 6.00% per  |
|                    | annum                                           |
|                    |                                                 |
|                    | To be paid every three months; on 23 January,   |
|                    | 23 April, 23 July, and 23 October of each year  |
|                    | from issuing date                               |
+--------------------+-------------------------------------------------+
| Registrar          | : TMB Bank Plc.                                 |
+--------------------+-------------------------------------------------+
| Outstanding amount | : 2,500,000 units                               |
| as of 31 December  |                                                 |
| 2011               |                                                 |
+--------------------+-------------------------------------------------+
| Outstanding value  | : 2,500,000,000 Baht                            |
| as of 31 December  |                                                 |
| 2011               |                                                 |
+--------------------+-------------------------------------------------+
| Credit rating      | : AA                                            |
+--------------------+-------------------------------------------------+

  (3) Agreements between major shareholders and the Company concerning
  topics which affect the issuance of securities or management of the
  Company’s operations.

  - None -

2.  Major shareholders

Top ten major shareholders of Advanced Info Service Plc. as of 24 August
2012, the latest book closing date for the right to receive dividend,
are as follow:

  ------- ----------------------------------------- --------------- --------------
  No.     Name                                      No. of shares   % of
                                                    held            shareholding

  1       SHIN CORPORATION PLC.                     1,202,712,000   40.45

  2       SINGTEL STRATEGIC INVESTMENTS PTE LTD     693,359,000     23.32

  3       THAI NVDR CO.,LTD.                        171,463,886     5.77

  4       LITTLEDOWN NOMINEES LIMITED               104,006,700     3.50

  5       HSBC (SINGAPORE) NOMINEES PTE LTD         87,757,037      2.95

  6       STATE STREET BANK EUROPE LIMITED          56,509,659      1.90

  7       BNY MELLON NOMINEES LIMITED               37,160,458      1.25

  8       STATE STREET BANK AND TRUST COMPANY       35,192,050      1.18

  9       SOCIAL SECURITY OFFICE (2 CASE)           25,196,400      0.85

  10      THE BANK OF NEW YORK (NOMINEES) LIMITED   19,933,178      0.67

  Total                                             2,433,290,368   81.84
  ------- ----------------------------------------- --------------- --------------

Source: Thailand Securities Depository Company Limited

[]

Note:

1. Major shareholder whose behavior can influence when determining
policy or handling operation, is Shin Corporation Plc. Major
shareholders of Shin Corporation Plc. as follows:

  ----- ----------------------------------------- ----------------- --------------
  No.   Name                                      No. of shares     % of
                                                  held              shareholding

  1     Aspen Holdings Ltd.                       1,334,354,825¹⁾   41.62

  2     Cedar Holdings Ltd.                       428,049,239²⁾     13.35
  ----- ----------------------------------------- ----------------- --------------

1)  Shareholding as of 30 August 2012, the latest book closing date

2)  Shareholding of Cedar Holdings Ltd. on 9 January 2013 reported to
    the Securities and Exchange Commission Thailand

Form 246-2

2. SingTel Strategic Investments Pte Ltd holds 21.16% directly in AIS,
and 2.15% via THAI TRUST FUND, and 0.01% via OCBC Nominees. Major
shareholder of SingTel Strategic Investments Pte Ltd is

  ----- ------------------------------------- ----------------------------
  No.   Name                                  % of shareholding

  1     Singtel Asian Investments Pte Ltd*    100.00
  ----- ------------------------------------- ----------------------------

Singtel Asian Investments Pte Ltd is 100% hold by Singapore
Telecommunication Limited (Source: Accounting and Corporate Regulatory
Authority (ARCA), Singapore as of 4 October 2012)

3.  Capital discipline

    1.  Capital management

  We aim to manage our capital structure to be stronger than industry
  peer and commit to be investment grade rating. This will allow us to
  retain superior financial flexibility in order to capture future
  growth prospect. Our financial flexibility means diversified source of
  capital, ease of funding, and appropriate cost of capital.

  In an intermediate term, we view that telecommunications industry in
  Thailand will face another phase of technology change and hence new
  investment will be required. Our balance sheet is flexible to prepare
  the company for such investment and we aim to leverage on our gearing
  through debt instrument.

2.  Liquidity surplus

  Excess liquidity (defined as any excess cash after working capital and
  capital expenditures) after investment in new growth areas and any
  debt/regulatory obligations/restructuring will be returned to
  shareholders

4.  Dividend Policy

  Company aims to pay dividend at least 100% of net profit.
  Historically, the company has been paying over 100% during the past
  five years. In the near future, the industry is going through some
  structural changes, which will be clearer once the change in status of
  the present contracts with TOT/CAT gain more visibility. In the
  meantime, the company intends to maintain flexibility to preserve
  long-term growth potential.

  Company aims to pay dividend to shareholders twice a year. The first
  dividend payment shall be paid as an interim dividend, which will be
  distributed from the operating results of the first half period of the
  year, subjected to the Board of Directors resolution and shall be
  reported to the shareholders at the next shareholders meeting. The
  second dividend payment shall be paid as an annual dividend, which
  will be distributed from the operating results of the second half
  period of the year, subjected to shareholders approval.

  Each subsidiary shall consider its dividend payment based upon its
  operating results, financial conditions, and other factors.

  The annual and interim dividend payments could be subjected to change,
  depending on cash flow and investment plan including any other future
  obligations of Company and subsidiaries. Such dividend payment shall
  not exceed the retained earnings in the Company Financial Statement
  nor adversely affect the Company and subsidiaries ongoing operations.

  Historical Dividend in 5 consecutive years

+------------------------------+-------+-------+-------+-------+-------+
|   Historical Dividend        | 2008  | 2009  | 2010  | 2011  | 2012  |
+------------------------------+-------+-------+-------+-------+-------+
| Total Dividend Payment (Baht | 6.30  | 11.30 | 12.92 | 8.43  | 10.90 |
| per Share)                   |       |       |       |       |       |
|                              | 3.00  | 3.00  | 3.00  | 4.17  | 5.90  |
| 1. Interim Dividend          |       |       |       |       |       |
|                              | 3.30  | 3.30  | 3.92  | 4.26  | 5.00  |
| 2. Annual Dividend           |       |       |       |       |       |
|                              | -     | 5.00  | 6.00  | -     | -     |
| 3. Special Dividend          |       |       |       |       |       |
+------------------------------+-------+-------+-------+-------+-------+
|   Dividend Payout Ratio      | 114%  | 196%  | 187%  | 113%  | 93%   |
+------------------------------+-------+-------+-------+-------+-------+