True : Annual Report 2023 (Form 56-1 One Report)

Annual Report 2023

(Form 56-1 One Report)

True Corporation Public Company Limited

		CONTENT
			Page
Part 1	Business Operation and Operating Results
	1.	Organizational Structure and Operation of the Group of	Topic 1	Page 1
		Companies
	2.	Risk Management	Topic 2	Page 1
	3.	Business Sustainability Development	Topic 3	Page 1
	4.	Management Discussion and Analysis	Topic 4	Page 1
	5.	Corporate Information and Other Significant Information	Topic 5	Page 1
Part 2	Corporate Governance
	6.	Corporate Governance Policy	Topic 6	Page 1
	7.	Corporate Governance Structure and Significant	Topic 7	Page 1
		Information Related to the Board of Director,
		Committees, Executives, Employees and Others
	8.	Report on Key Operating Results on Corporate	Topic 8	Page 1
		Governance
	9.	Internal Control and Connected Transactions	Topic 9	Page 1
Part 3	Financial Statements

Attachments

Appendix 1 Information of Directors, Executive Officers, Controlling Persons, the Person Taking the Highest Responsibility in Finance and Accounting, the Person Supervising Accounting and Company Secretary

Appendix 2 Information of Directors of Subsidiaries

Appendix 3 Information of the Head of the Internal Audit and Head of Compliance Units

Appendix 4 Operating Assets and Overview of Allocation of Income, Taxes and Business Activities by Tax Jurisdiction

Appendix 5 Corporate Governance Policy, Code of Conduct and Committee Charters

Appendix 6 Report of the Audit Committee and Report of Other Committees

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

1. Organizational structure and operation of the group of companies

1.1 Company Background and Business Overview

1.1.1 The Company's vision, objective and long term goal

The Company's vision is to be Thailand's leading telecom-tech company, transforming the lives of Thai people and propelling businesses to the forefront of the digital economy with the key mission as follows:

• To build a strong tech ecosystem of digital talent and capabilities
• To provide innovative services which improve our customers' lives, and
• To support a sustainable society

To accomplish its vision and mission, the Company has adopted the following seven strategic pillars:

1. Be the Undisputed Network Leader

True Corporation's infrastructure potential creates superlative mobile and fixed broadband experiences, with high upload and download speeds for both essential communication and online entertainment services such as gaming and video. This potential leads to improved efficiency and more opportunities to invest in innovative solutions to create fully digitalization services. True Corporation also aims to increase network quality, reliability, and speed along with our 5G coverage expansion.

The infrastructure's efficiency and environmental impact will meet the highest international standards, leveraging our strong sustainability commitments and global partnerships.

1. Set the Bar for Customer Experience in Thailand
   True Corporation offers the ultimate customer experience in core services and new innovative combined services beyond connectivity. Reaching millions of people in Thailand through wide coverage the largest distribution and retail network in urban and rural areas allows the company to keep abreast of customer needs. Consumers will be able to enjoy value-driven services and hyper-personalized offerings catering to different lifestyle needs with consistent and seamless experiences across all touchpoints.
2. Enhance Smart Life for Thai Customers
   True Corporation offers connected solutions to uplift the standard of living of Thai consumers and revolutionize their lifestyles. Customers can enjoy a complete digital ecosystem that bundles connectivity, entertainment content, security and all aspects to fulfill their smart life.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 1

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

1. Champion Growth Beyond the Core with Higher Values and Greater Experience
   The Company fosters a digital ecosystem where consumers from all walks of life can enjoy growth beyond core connectivity services with better values and experience, from healthcare, insurance, financial services, gaming, and much more.
   To do this, the Company will invest in startups building fresh and disruptive ideas that solve customer pain points. Our ecosystem will equip the Company's strength with the necessary speed, flexibility, and scale to address emerging digital challenges, while ensuring that we can remain closer to changing customer demands.
2. Raise Standards for Enterprise Customers
   The Company accelerates digital transformation and adoption of IoT and 5G technologies among Thai businesses by offering reliable connectivity services, digital transformation platforms, innovative products as well as superior solutions for their smart business to accommodate future expansion. The Company is committed to ensuring the competitiveness and efficiency of every business, including small and medium enterprises.
3. Build the Best Place to Work
   The Company nurtures a culture of empowerment to be among the best employers in the region and attract established experts and rising digital talents wishing to grow in a fast-moving tech company that upholds diversity and inclusion. True Corporation will be at the forefront of technological development, offering exciting opportunities for its employees to build impact-driven solutions for customers and grow into a highly competitive, knowledge-based workforce.
4. Create Sustainable Value via ESG
   The Company embodies commitment to environmental sustainability, social responsibility, and governance ethics. True Corporation is forging a path toward carbon neutrality (Scope 1 & 2) by 2030 and net-zero emissions by 2050, with a rigorous Zero Landfill initiative for e-waste. The Company's social initiatives are geared towards providing digital inclusion and education to 36 million people and online users, enhancing health and well-being through our service offerings, and promoting inclusivity. Governance-wise, we enforce a zero-tolerance policy on corruption and uphold stringent data privacy and cybersecurity standards, aligning with global best practices. The Company's ESG efforts have earned us esteemed recognition, affirming our role as a corporate leader in sustainability and ethical business.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 2

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

1.1.2Key Developments

March 2023

• dtac & True Amalgamation complete under new corporate name "True Corporation Public Company Limited". This follows the joint shareholders meeting of dtac and True on 22 February 2023, which considered and resolved matters relating to the new company formed as a result of the amalgamation including registered capital, number of shares, share price, and paid-up capital. As of 1 March 2023, the new corporate name has been applied to the Department of Business Development, Ministry of Commerce for approval. Furthermore, the board of directors of the new company has appointed Mr. Manat Manavutiveth as the Chief Executive Officer and Mr. Sharad Mehrotra as Deputy Chief Executive Officer.
• True Corporation Public Company Limited opens new chapter of Telecom-Tech "Better Together" synergy for infinite benefits from the best of both founding companies. Dtac & True to create greater value propositions under the new 7 strategic pillars covering every aspect including 1. Be the Undisputed Network and Digital Infrastructure Leader 2. Champion Growth Beyond the Core 3. Set the Bar for Customer Experience in Thailand 4. Enhance Smart Life for Customers 5. Raise Standards for Enterprise Customers 6. Build the Best Place to Work 7. ESG Best in Class: A sustainable organization to create long-term value to support digital progress and to strengthen the new company with support from expertise from global partners - Telenor Group and CP Group.
• True Corporation Public Company Limited - SET: TRUE - 3 March 2023 begins its first trading day after the completion of the amalgamation on the Stock Exchange of Thailand (SET). The Company is listed in the Information & Communications Technology sector and with an opening price of THB 8.35 in the technology industry Information and communication technology business category. The amount of the registered capital and the paid-up capital of 138,208,403,204 baht and the total number of issued equal to 34,552,100,801 shares, par value 4 baht per share.
• dtac and True customers can now enjoy network roaming services in all 77 provinces in Thailand, allowing them to enjoy even better and faster high-speed internet experiences while streaming their favorite movies, TV series, music, social media, live sessions, and much more. dtac subscribers can gain roaming on True's 2600 MHz for 5G while True subscribers can gain roaming on dtac's 700 MHz for both 4G and 5G services. Subscribers will also have access to even more Wi-Fi hotspots, providing an even better digital lifestyle experience.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 3

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

• True Corporation Public Company Limited announced its intention to become Thailand's No. 1 telecom-tech company. Upon the completion of the amalgamation, True Corporation's company credit rating was assigned A+ by TRIS Rating. Prior to the amalgamation, the former True Corporation PCL or TRUEE was rated BBB+ while Total Access Communication PCL or dtac was rated AA. The three notch higher rating from BBB+ to A+ of True Corporation when compared with former True, would enable it to refinance its debts at a lower interest rate, gaining a higher access to liquidity in the market by tapping into a wider pool of investors.

April 2023

• True Corporation Public Company Limited reveals #HappyMonthsary - True and dtac subscribers embrace the synergy of True Corporation to deliver Better Together reflected in enjoyment with over 20 million new privileges redeemed in the first month. To reward customers, True Corporation is doubling the number of partners privileges in the second quarter of 2023 for both True and dtac customers. Moreover, a recent True and dtac customer satisfaction survey found that subscribers are more satisfied after our synergy to deliver "Better Together". Here is an additional summary of progress: Around 12 million subscribers have better experiences from True-dtac roaming services, half a million new subscribers signed up on our digital platforms, and gaming Nation platform gained 25% more new gamers.
• True Corporation Public Company Limited introduces new duo presenters, "Nine- Baifern", for the first time ever. After the amalgamation, the company continues to conduct pro-active strategy to solidify better lives when we have each other or Better Together, joining force 1+1 equals infinity, creating endless possibilities through a 5-episode advertising series. Since the teaser launch, the video has received over 2.6 million views and sparked a top trending conversation on Twitter. True Corporation connects the parallel universe by bringing together Baifern who was the True 5G Brand Presenter in the state- of-the-art Metaverse advertisement or virtual world that presented the outstanding features of integrated digital ecosystem for better future lifestyles and Nine who was the presenter of dtac brand, introducing dtac Turbo, a hi-speed internet on mobile and package that focus on maximum value with the "Flip" phenomenon for simple lives. Today, the two presenters from different brands have joined together, emphasizing the True-dtac amalgamation concept that we would lead a better life when we have each other.

May 2023

• True Corporation Public Company Limited forges ahead a proactive marketing strategy in the 2nd quarter, solidifying its position as a most loved brand for all lifestyles in every age. Hi-light Better Together Festival roadshow emphasizes the Better Together concept. Deliver magical happiness from True-dtac amalgamation for all Thai customers nationwide with unprecedented value, equipped with new devices, attractive promotions, and the best services with giveaways and discounts. True Brand, reflecting its position as Your Everyday Living -Tech to bring technology accessibility to everyone for a better living under 5 hi-light marketing strategies; 1. Better Network 2. Higher Value Package 3. More Fulfilling Entertainment Content 4. Better Privileges 5. Advanced Service Quality. Recently, it announced holding Better Together Festival Roadshows took place in the provincial areas, led by the adorable couple Nine and Baifern, to deliver happiness from the True- dtac merger and parading with unprecedented valuable offers in every region.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 4

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

June 2023

• TrueID forges ahead amidst Thailand's streaming platform competition. In-depth report and analysis on vdo consumption in Southeast Asia conducted by Media Partners Asia (MPA), indicates that in first quarter 2023, MPA highlights TrueID as a burgeoning streaming platform in Thailand, boasting a 30% share of the Premium Video on Demand audience. This achievement can be attributed to the platform's strength in offering Premiere League Football content. As of May 2023, the TrueID application has reached 36 million Monthly Active Users (MAU), a significant increase from the pre-COVID-19 period in 2019 when it had just 10 million users. Out of these users, around 75% are existing True customers, while the remaining 25% are general users. The primary factor propelling TrueID to its leading position in the streaming platform battlefield can be attributed to its effective content strategies, which include partnership, exclusive content, localization, and personalization.
• dtac App & True iService, which take numerous components, including diversity encompasses both inherent diversity and acquired diversity, for these two innovations to succeed today. The dtac app was created with the aim of being a hub for dtac-customer interactions, placing a strong emphasis on in-app-enabled monetization through personalization. In the context of app development, experiential diversity holds significant meaning. To design an app for millions of users, the cooperation of multiple divisions is required. It is essential for these divisions to blend their diverse knowledge and expertise during the design process. App development thus encompasses not only coding and IT skills but also requires a human touch to deliver user-friendly experience and easy-to- understand content. For True iService, it has been developed to provide customer-centric before and after-sales service, incorporating automated self-service functions. The primary focus of True iService is the development of automated self-services that cater to both before and after-sale needs. The app was initially developed to cater to the after-sales needs of customers who had purchased True products such as True Move, True Online, and TrueVisions. True iService maintains a strong emphasis on "buy-sell-pay" features, ensuring that customers have round-the-clock access to convenient self-services. To further enhance the customer experience, True introduced the "Mali" chatbot, which plays a crucial role in delivering necessary services and assisting with troubleshooting. This innovative addition has resulted in a notable improvement in customer satisfaction, as evidenced by a significant 15% decrease in the number of customer calls received by the call center. On the whole, the heart of technological development is "standardization" through collaboration arising from the diversity of developers and users, and technology simply serves as a tool to connect and harmonize people.
• TrueX's Mission to Empower Thailand with Advanced and Affordable Technology. IoT Analytics expected the number of IoT connections worldwide to continue growing significantly. True is actively expanding its IoT offerings to provide a range of services and solutions. The TrueX platform encompasses six solutions: X Home, X Health, X Learning, X Utility & Energy, X Shopping, and X Entertainment. These solutions are designed to address pain points in people's lifestyles and offer enhanced experiences. Notably, X Home

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 5

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

has emerged as the most outstanding and rapidly growing solution, driven by increasing demand for safety and security features. Since its launch in early April 2023, TrueX has witnessed over 350,000 application downloads (the number includes the existing database of the former True LivingTECH). The target is to reach one million downloads by the end of 2023, while also aiming to increase the number of daily active users to 200,000. Moreover, TrueX aims to evolve into a smart platform that simplifies lifestyles by offering an expanded range of solutions and continually introducing new innovations. TrueX will introduce new product offerings in the Thai market and embraces the use of AI in developing products and services to meet future demands.

July 2023

• True Corporation Public Company Limited set to Offer a New A+ Rated Debentures to Investors. "True" with a new A+ rating and a "stable" outlook by TRIS Rating reflecting the improved credit profile of the new merged company formed by the amalgamation of True and dtac is focusing on bridging the digital divide and facilitating the digital transformation of local businesses. The Company is preparing to launch a public offering (PO) of debentures in 4 tranches, ranging from 2 to 10-year tenors with fixed coupon rates between 3.35-4.50% per annum. The subscription period will be between 20-21 and 24 July 2023.
• True Corporation Public Company Limited is listed for a global recognized sustainability index by FTSE Russell. True Corporation is listed for the 7th consecutive year and as the only Thai telecom operator that is included in the group receiving the world top-rank score in the global telecommunications sector. True has an above average score in every ESG dimension, particularly in social aspect that received full score from supporting Thai youth through its True Plook Panya Project and CONNEXT ED Foundation; Environmental aspect by installing clean energy solar cells at signal towers and switching board to further minimize greenhouse effect, managing e-Waste appropriately and Good Governance aspect by focusing on cyber security and personal data privacy as well as promoting equality among every group of people in the society to solidify its position as a telecom-tech company that conduct sustainable business for the Thai society.
• True Corporation Public Company Limited solidifies its telecom-tech company vision through the collaboration with GSMA, becoming the first provider in Thailand to join the GSMA Open Gateway initiative, a strategic alliance to jointly develop Mobile Network Open APIs with 31 mobile network operators. The deployment allows real-time access and interconnection with True mobile network through open global APIs, leveraging True's telecommunication and digital infrastructure potential and monetizing network capabilities through Mobile Network Open APIs. It also enables variety of digital services, creating opportunities to generate new revenue streams for telecom business as well as support business organizations to increase value for end consumers. Moreover, this collaboration paves the way in co-operating and innovating digital services with both Thai and International start-ups and developers to deliver benefits and state-of-the-art digital experiences and sustainably drive the nation's digital economy with sustainable growth.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 6

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

August 2023

• True Corporation Public Company Limited Elevating attention for maximum benefit among customers to ensure security when having each other, True Corporation is amplifying its position as the leader in integrated security system on both networks and digital services as well as covering all securities for customers and family with the debut of "True-dtac Security", hi-lighting 3 features; End-to-end Protection with integrated cyber threat protection on the network and applications under global standard; 24/7 Smart Monitoring that offer 24-hourreal-time observation on various operational systems; Best- in-class Partnership that collaborates with world-class partners on cyber security such as CrowdStrike - Palo Alto Networks - Vectra AI and on insurance services such as FWD, Dhipaya Insurance to deliver superior security and best experiences guaranteed by NIST (National Institute of Standards and Technology), USA that estimate higher cyber security NIST Score than the global benchmark. At the same time, maximizing confidence on True Group's digital services from digital media- TrueID, digital home -TrueX and digital health -Mordee with e-KYC system to proof the customer's identity and maximum care on data privacy with detection system on threat via a 24-hour artificial intelligence along with protection packages including valuable insurance, life insurance and accident insurance including safety on mobile phone and tablet devices for True-dtac customers to lead a daily safe worried-free digital lifestyles.
• TrueBusiness, a leading telecommunication and ICT digital solutions provider for corporate clients, announced its collaboration with REPCO NEX, under SCG Chemicals (SCGC), an integrated industrial solution provider with integrated innovation to unite strength and transition into smart industry 4.0. The cooperation is ready to deliver superior integrated end-to-end digital innovation and solutions. Leveraging the robust connectivity of both wired and wireless communication through the genius True 5G network, Cloud service and Cyber security solution, they blend expertise in smart industrial solutions covering processes, machinery, and staff. This partnership aims to enhance production efficiency, reduce costs and work durations, increase precision in manufacturing quality, and open limitless business opportunities.

September 2023

• True Corporation Public Company Limited as represented by True Lab and Mordee the leading telemedicine app, jointly set a higher target for access to healthcare for Thai people. To support this ambition, new features proposed by winners of the True Lab Hackathon will be added to the Mordee app aimed at teenagers, LGBTQ, and health lovers. True Corporation - via True Lab - is focused on supporting rising digital talents, to elevate the health of Thai people by leveraging modern technologies with the Mordee app. By developing new features to satisfy new and more youthful target groups, we are leveling up access to healthcare for Thai people with telemedicine. We aim to contribute to the transformation of Thai public health by spearheading the Mordee app to address the most needs with the highest satisfaction.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 7

True Corporation Public Company Limited

Annual Report 2023 (Form 56-1 One Report)

• True Corporation Public Company Limited Management revealed synergies of THB 250 billion in Net Present Value (NPV) at the Capital Markets Day. The management also outlined details of key areas contributing to the synergies, with 35% delivered by the network consolidation project "Single Grid". EBITDA growth will surpass Service Revenue growth as the Company focuses on profitable growth while undergoing a large-scale transformation. True Corporation expects to achieve steady state cashflow savings of approximately THB 22 billion from 2026.

October 2023

• True Corporation Public Company Limited plans to issue 5 tranches of debentures to retail investors, comprised of 1 - 10 years tenors, with coupon rates of [3.12-4.80]% per annum. They come with an A+ rating and a "stable" outlook from Tris Rating, reflecting the Company's strength following the merger of True and dtac. The subscription is set for 2 - 6 November 2023 through 6 leading financial institutions namely, Bangkok Bank, Kasikorn Bank, Siam Commercial Bank, Krungsri Bank, CIMB Thai Bank, and United Overseas Bank (Thai). With Krungsri Bank serving as the debenture registrar and representative for debenture holders. Additionally, investors can participate via the TrueMoney Wallet application.
• True Corporation Public Company Limited is leveraging its potential to propel the country towards global digital opportunities. Supporting the government in boosting Thailand's digital competitiveness to enable its industries and people to transition from digital consumers to digital producers. This effort places a strong emphasis on digital transformation through 'CTPaP', which encompasses five building blocks: Connectivity, Technology, Platform as a Service, Analytics & Artificial Intelligence, and People. The objective is to fortify Thailand's position as a leader in the digital economy within Southeast Asia and capture opportunities in Southeast Asia's anticipated 1 trillion USD digital economy.
• True Corporation Public Company Limited plans to issue 5 tranches of debentures to retail investors, comprised of 1 - 10 years tenors, with coupon rates of 3.15 - 4.60% per annum. They come with an A+ rating and a "stable" outlook from Tris Rating, reflecting the Company's strength following the merger of True and dtac. The subscription is set for November 2 - 3 and 6, 2023 through 6 leading financial institutions namely, Bangkok Bank, Kasikorn Bank, Siam Commercial Bank, Krungsri Bank, CIMB Thai Bank, and United Overseas Bank (Thai). With Krungsri Bank serving as the debenture registrar and representative for debenture holders. Additionally, investors can participate via the TrueMoney Wallet application.

November 2023

• True Corporation Public Company Limited offered new debentures to general investors in 5 tranches ranging from 1 to 10-year tenors with fixed coupon rates between 3.15-4.60% per annum. The new debenture offering presents an opportunity for investors to invest in the debentures issued by the leading telecom-tech company with A+ credit rating and a "stable" outlook.

Part I

Organizational structure and operation of the group of companies

Topic 1 - Page 8