True Public : Management Discussion and Analysis Quarter 1 Ending 31 Mar 2020

(Translation)

Ref: TRUE-SEC 012/2563

15th May 2020

The President of the Stock Exchange of Thailand

The Stock Exchange of Thailand

Subject:	Appointment of the Auditor and Submission of the Interim Financial
	Information for Q1/2020

Enclosure: 1. A Set of the Reviewed Interim Financial Information for Q1/2020 (Thai / English)

2. A Set of the Management's Discussion and Analysis for Q1/2020

(Thai / English)

Reference is made to the announcement of the Office of the Securities and Exchange Commission ("SEC") regarding the Notification of Capital Market Supervisory Board No. ThorChor 28/2563 dated 27th March 2020, granting a waiver in case of the listed company not able to hold the Annual General Meeting of the Shareholders to appoint auditors due to the pandemic situation of Coronavirus Disease 2019 ("COVID-19") is able to submit the company's financial statements for the first quarter of the year 2020 reviewed by the auditors in the list of auditors approved by the SEC and appointed by the company's Board of Directors to the SEC and the company is required to propose the Annual General Meeting of the Shareholders to further consider the appointment of the said auditor.

True Corporation Public Company Limited (the "Company"), would like to inform you that the Board of Directors Meeting of the Company No. 2/2563 held on 28th February 2020, which has been scrutinized by the Audit Committee, resolved to propose to the Annual General Meeting of the Shareholders for the Year 2020 for appointment of auditors from PricewaterhouseCoopers ABAS Limited as listed below to be the Company's auditors for the year 2020;

1)	Mr. Pisit Thangtanagul	C.P.A. (Thailand) No. 4095
2)	Mr. Kajornkiet Aroonpirodkul	C.P.A. (Thailand) No. 3445
3)	Mr. Paiboon	Tunkoon	C.P.A. (Thailand) No. 4298
4)	Ms. Nuntika	Limviriyalers	C.P.A. (Thailand) No. 7358

The Company will propose the appointment of the auditors per the said list to the Annual General Meeting of the Shareholders for the Year 2020, which will be held on 19th June 2020 according to the resolution of the Company's Board of Directors No. 4/2563 held on 7th May 2020.

In this connection, the Company would like to submit an interim consolidated and separate financial information for the first quarter ending 31st March 2020, which was reviewed by the said auditors, to the Stock Exchange of Thailand. The Company reported a consolidated net loss to equity holders of the Company of Baht 161.17 million for the first quarter of the Year 2020, representing a change of greater than 20 percent compared with the net results of the same period in the last year. Please see further details in the Management's Discussion and Analysis for Q1/2020 as attached herewith.

Please be informed accordingly.

Respectfully yours,

- Signature -

Ms. Yupa Leewongcharoen

Group Chief Financial Officer

- 2 -

Management's Discussion and Analysis

Overview

True Group reported core service revenue growth of 5% YoY and consolidated service revenue growth of 3% to Baht 26.6 billion in 1Q20. EBITDA expanded 12% YoY due to higher revenues and 5% QoQ on lower selling and marketing expenses to Baht 8.5 billion excluding the effect of the new accounting standard ( TFRS16) . Reported EBITDA and operating profit were Baht 12. 2 billion and Baht 2. 3 billion respectively. True Group has laid out various cost and productivity initiatives to sustainably enhance profitability while adapting itself under the COVID- 19 impact on the Thai economy. These include efficient spending on subsidy with quality subscriber growth, progressing toward online and digital marketing, sales channel and manpower productivity, network optimization and content selection.

TrueMove H's service revenue increased 5.2% YoY to Baht 20.1 billion in 1Q20 primarily driven by double- digit growth of postpaid revenues and grew 1. 2% QoQ despite the COVID- 19 impact pressuring international roaming and tourist related revenues in late quarter. TrueMove

1. maintained its industry' s outperformance during such crisis while the overall industry' s service revenue grew 1. 6% YoY but contracted 2. 1% QoQ with impact from COVID- 19 and competitive intensity in the prepaid market primarily on fixed- speed unlimited data plans. TrueMove H's postpaid acquisition remained strong with net adds of 300k in 1Q20. It ended the quarter with total subscriber base of 30.3 million, of which 8.6 million were postpaid and 21.7 million were prepaid users. TrueMove H' s solid performance was driven by its network strength, proven with the latest Q1 nPerf results as the best mobile internet provider for four consecutive years particularly on browsing and streaming performance, and materialized synergy with strategic partners leveraging their nationwide distribution channels whose outlets are not affected by the lockdown. This, combined with its segmented propositions and privileges that match customers' needs along with increasing data usage and digital transactions should stimulate TrueMove H's growth further.

TrueOnline's broadband internet revenue was Baht 6.5 billion in 1Q20, a growth of 4.7% from the previous year, as consumer broadband revenue increased on positive response to the 1Gbps and TrueID TV bundled propositions. Its broadband subscriber base expanded to 3. 9 million with 55k net adds during the first quarter amid market competition with discounts and speed upgrade as key attractions. To capture rising demand for broadband internet usage as work from home and online transactions become more prevalent, TrueOnline introduced special propositions including speed shuffle and upgrade for contract extension, VLearn package for e-learning and VWork package for work from home supporting video conferencing platform "True Virtual World" while adding benefits through TrueID TV allowing customers to enjoy world- class quality content and True Points. These have received promising market response expecting to drive growth and enlarging up-sell and cross-sell potentials further.

TrueVisions' service revenue was Baht 2. 6 billion in 1Q20 pressured by COVID- 19 impact predominantly on an absence of entertainment events and live- sports postponement which lowered their associated revenues and costs. Its total customer base remained relatively flat at approximately 4 million by the end of the first quarter. In addition to strengthening True Group' s convergence offerings with high quality international and local content, TrueVisions saw positive progression on its Online Station with influencer network adding additional revenue streams and boosting effective customer acquisition across True Group' s various businesses.

1

True Digital Group continues to differentiate True Group from other operators with its growing ecosystem of platforms and services. TrueID, its digital media platform, was the most downloaded application in the entertainment category in 1Q20, with monthly video views of 141 million views and reached its highest video on demand views (VOD) at 36.9 million views, representing 400% growth from the previous year. In addition, content subscription on TrueID continued to increase to over 285,000 content transactions while the added live chat, voice calling, and direct chat functions exhibited growth with 280,000 active users per month since its launch. TrueID TV, its OTT platform, also saw an incremental scale with 843,000 TrueID TV boxes shipped. True Digital Solutions expanded its client base and partnership on various smart solutions for industry verticals such as agriculture, retail, manufacturing, supply chain, logistics, and healthcare. The unit connected over 242,000 IoT endpoints and devices.

The COVID- 19 pandemic has caused an economic downturn with lower activities and tourist arrivals. Telecommunication industry has been pressured by lower tourist related revenues for both inbound and outbound as well as certain shop closure. The current crisis, however, comes with growth opportunity as demand for mobile data, broadband and online services has surged following the lockdown in late first quarter. To ensure that True Group' s customers and business partners could access the services at all time, True Group added bandwidth capacity to accommodate local and international connections and set up dedicated teams to support quality of networks nationwide. It also provided special privileges including voice calls, 10GB mobile internet and 100Mbps broadband internet upgrade to registered users in April and May through collaboration with the NBTC as well as upgrading package for TrueVisions' customers. Additionally, True Group has offered access to a cloud- based integrated solutions platform

• True Virtual World" to support work from home arrangements, e- learning and entertainments. It also extends partnership in healthcare segment providing digital infrastructure and platforms including 5G network and devices, robotics " True5G Connect & Care Tech" , Teleclinic, Virtual COVID- 19 Clinic and VHealth platforms. As consumers and businesses rapidly move toward digital and solution based, online transactions and e- commerce, True Group is in a good position to grow alongside this emergence of new normal with its comprehensive digital ecosystem and solutions.

2

1Q20 Financial Summary

True Group reported a consolidated net loss to shareholders of the parent company of Baht 161.2 million in 1Q20, representing a change of greater than 20% YoY, which is summarized as below:

True Group's consolidated service revenue increased 3.0% YoY to Baht 26.6 billion in 1Q20 driven mainly by the cellular business whose service revenue grew 5.2% YoY with higher nonvoice usage. EBITDA expanded 12% YoY due to service revenue growth and 5% QoQ on lower selling and marketing expenses to Baht 8.5 billion excluding the effect of the new accounting standard (TFRS16). Reported EBITDA and operating profit were Baht 12.2 billion and Baht 2.3 billion respectively.

The TFRS 16 adoption negatively affected True Group's bottom line performance of approximately Baht 0.2 billion. This resulted in a net loss to shareholders of the parent company totaling Baht 161.2 million in 1Q20 compared to profit of Baht 1.5 billion in 1Q19 which had positive impact from DIF incremental value totaling Baht 1.2 billion. Excluding the TFRS 16 impact, True Group recorded a profit of Baht 48 million in the first quarter of 2020.

3

Consolidated Results of Operations - Normalized Basis

(UnauCiteC)	1Q20	4Q19	1Q19	% Change
(Baht in millions unless otherwise indicated)				Y-o-Y	Q-o-Q
Revenues from providing services	30,061	30,787	29,675	1.3	(2.4)
Interconnection revenue	389	515	838	(53.6)	(24.5)
Network rental revenue	3,091	3,061	3,024	2.2	1.0
Service revenue	26,581	27,210	25,813	3.0	(2.3)
Core Service revenue	25,813	25,607	24,675	4.6	0.8
Revenues from product sales	4,784	6,894	3,280	45.9	(30.6)
Total revenues	34,844	37,681	32,955	5.7	(7.5)
Total cost of providing services	20,255	22,442	21,194	(4.4)	(9.7)
Regulatory costs	669	634	725	(7.7)	5.5
Interconnection cost	534	733	925	(42.3)	(27.1)
Cost of providing services exclude IC	10,873	14,878	14,171	(23.3)	(26.9)
Depreciation and amortization	8,179	6,198	5,373	52.2	32.0
Cost of sales	5,342	7,306	3,810	40.2	(26.9)
Selling and administrative expenses	6,922	7,221	6,421	7.8	(4.1)
Depreciation and amortization	1,714	1,148	682	151.4	49.3
Others	5,207	6,072	5,740	(9.3)	(14.3)
EBITDA	12,219	8,058	7,584	61.1	51.6
EBITDA excl. TFRS 16 impact	8,458	8,058	7,584	11.5	5.0
Depreciation and amortization	(9,894)	(7,346)	(6,055)	63.4	34.7
Operating profit	2,326	712	1,529	52.1	226.9
Interest expense (net)	(3,696)	(1,938)	(1,535)	140.8	90.7
Interest income	143	90	99	45.4	59.4
Interest expense	(3,839)	(2,028)	(1,634)	135.0	89.3
Other financial fees	(96)	(83)	(40)	141.9	15.7
Financial cost related to license	(441)	(475)	(509)	(13.4)	(7.2)
Income tax (expense) revenue	25	26	28	(11.2)	(3.6)
Share of results in subsidiaries and associates	1,017	1,060	2,139	(52.5)	(4.1)
(Income) loss attributable to non-controlling interests	37	39	15	144.1	(6.2)
Foreign exchange gain (loss)	357	(55)	(26)	NM	NM
Other (expense) income	310	925	(93)	NM	(66.4)
Net profit (loss) to equity holders of the Company	(161)	210	1,509	NM	NM
Non-controlling interests	(37)	(39)	(15)	(144.1)	6.2
Net profit (loss) for the year	(198)	171	1,494	NM	NM

Remark: 1Q20 non-recurring items partly comprised foreign exchange gain totaling Baht 357 million.

Core service revenue excludes revenues from event based and non-core services such as outsourcing call center, non-recurring contracted business as well as entertainment and others.

4

CONSOLIDATED RESULTS OF OPERATIONS

• True Group's consolidated service revenue was Baht 26.6 billion, increasing 3.0% YoY mainly due to continued solid growth of the cellular business particularly on the postpaid segment with higher non-voice revenue and subscriber base. QoQ decline of 2.3% was driven by impact from COVID-19 pandemic and city lockdown with an absence of events which lowered both associated revenues and costs. Core service revenue continued to grow at 5% YoY and 1% QoQ in the first quarter of 2020.

1. TrueMove H continued to outgrow the industry as its network strength and synergy with business partners particularly on nationwide distribution channels gained traction further. The business gained 300k postpaid net adds in 1Q20 boosting its service revenue up 5.2% YoY, 1.2% QoQ to Baht 20.1 billion and value market share to 30.6% amid quarterly contraction trend of the other industry players. TrueMove H ended the first quarter with total subscriber base of 30.3 million, of which 8.6 million were postpaid and 21.7 million were prepaid users. Its blended ARPU improved QoQ and YoY to Baht 213.
2. • The combined voice and non-voice revenue increased 5.4% YoY and 1.3% QoQ to Baht 19.0 billion driven by solid growth in the postpaid segment whose revenue grew in double-digitrate from the previous year as well as expanding sales channels.
   • Revenue from international roaming and other services were relatively flat at Baht 1.1 billion with the lockdown impact on tourist related revenues starting in late first quarter.

1. TrueOnline's service revenue was Baht 9.1 billion, increasing 3.1% YoY on broadband internet growth while softening 4.0% QoQ on an absence of both revenue and cost related to True Touch, contact center service, as True Group sold its stake in late December 2019. TrueOnline's core service revenue continued to grow at 6% YoY and 1% QoQ in 1Q20.
2. • Broadband, Internet and Business Data Service was Baht 6.5 billion, increasing 4.7% YoY due to consumer broadband growth amid market competition with industry-widediscounts and speed upgrade. Broadband revenue excluding non-recurring,contracted business grew 5% YoY and 2% QoQ.
   • The 1Gbps fiber through Gigatex Fiber Router as well as bundled offering with TrueID TV received positive market responses driving broadband subscriber base up to 3.9 million with net adds of 55k in 1Q20.

1. TrueVisions' service revenue was Baht 2.6 billion declining from other service revenues (comprising entertainment, sponsorship, advertising and other revenues) to Baht 768 million given COVID-19impact mainly on an absence of entertainment events and live-sportspostponement which lowered both their associated revenues and costs.
2. • Subscription and installation revenue softened 5.9% YoY to Baht 1.8 billion, representing 71% of TrueVisions' service revenue. While TrueVisions' quality content is shared across True Group's multiple platforms, the business will further place importance on content selection to enhance revenue and return on investment.
   • Along with consumers' behavior shift toward streaming content and digital media consumption, content subscription on the digital platform,

5

TrueID, continued to increase to over 285,000 content transactions.

• Product sales increased 45.9% YoY to Baht 4.8 billion on positive response to device- bundling campaigns but decreased 30.6% QoQ due to seasonality with high sales of the new iPhone model in the fourth quarter. Efficient subsidy spending aiming for high-quality subscriber growth will be key focus to improve margin.
• Regulatory costs decreased 7.7% YoY but increased 5.5% QoQ to Baht 669 million following solid growth of the cellular service revenue.
• Net IC expense was Baht 145 million, increasing YoY but decreasing QoQ on higher and lower net off-net traffic, respectively.
• Core operating expense (comprising cost of providing services excluding IC and other S&A) was Baht 16.1 billion, dropping 19% YoY and 23% QoQ mainly from the TFRS 16 adoption; excluding this, core operating expense was flat (-0.3%) YoY and decreased 5% QoQ on lower selling and marketing expenses as well as savings from the lockdown with lower rental and entertainment event related costs.
• EBITDA grew 12% YoY mainly due to higher service revenue and 5% QoQ following SG&A decline to Baht 8.5 billion excluding the TFRS 16 impact. Reported EBITDA was Baht 12.2 billion with margin on service revenue of 46% in 1Q20.
• Depreciation and amortization expenses increased to Baht 9.9 billion following the TFRS 16 adoption and continued network expansion.
• These drove operating profit to Baht 2.3 billion compared to Baht 712 million in 4Q19 and Baht 1.5 billion in 1Q19.
• Interest expense (net) increased to Baht 3.7 billion or Baht 2.2 billion excluding the TFRS 16 impact with higher debt level to support business expansion and license fee payments.
• Income tax revenue decreased YoY to Baht 25 million with higher current tax than the same period last year.
• The TFRS 16 adoption caused a negative bottom line impact of Baht 0.2 billion resulting a net loss of Baht 161 million. Excluding this, True Group recorded a profit of Baht 48 million in the first quarter of 2020.

6

Normalized Revenue Profile

		Consolidated Revenues (Before Intersegment Eliminations)
(Unaudited)	1Q20	4Q19	1Q19	% Change
		% of revenue		% of revenue		% of revenue
(Baht in millions unless otherwise indicated)	Revenue	after	Revenue	after	Revenue	after	YoY	QoQ
		eliminations		eliminations		eliminations
TrueMove H	28,491		30,313		26,159		8.9	(6.0)
Service revenue	20,094		19,850		19,103		5.2	1.2
- Voice and Non-Voice	18,969		18,719		17,993		5.4	1.3
- IR and others	1,125		1,131		1,109		1.4	(0.5)
Interconnection revenue	389		516		838		(53.6)	(24.5)
Network rental revenue	2,982		2,954		2,916		2.2	1.0
Product sales	5,026		6,994		3,301		52.3	(28.1)
Intersegment elimination	(1,466)		(1,381)		(1,068)		37.2	6.2
TrueMove H after elimination	27,025	77.6%	28,932	76.8%	25,090	76.1%	7.7	(6.6)
TrueOnline	9,242		9,670		8,956		3.2	(4.4)
Core service revenue	9,101		9,035		8,627		5.5	0.7
Service revenue	9,101		9,477		8,831		3.1	(4.0)
- Broadband, Internet and Business Data Service	6,529		6,697		6,238		4.7	(2.5)
- Others	2,572		2,780		2,594		(0.8)	(7.5)
Network rental revenue (FOC)	109		108		108		1.4	0.9
Product sales	31		85		17		80.4	(63.3)
Intersegment elimination	(3,552)		(3,434)		(3,378)		5.2	3.4
TrueOnline after elimination	5,690	16.3%	6,236	16.5%	5,579	16.9%	2.0	(8.8)
TrueVisions	2,614		3,044		2,948		(11.3)	(14.1)
Service revenue	2,613		3,043		2,894		(9.7)	(14.1)
- Subscription and installation	1,845		1,881		1,961		(5.9)	(1.9)
- Others	768		1,162		934		(17.7)	(33.9)
Product sales	1		0		54		(98.4)	215.3
Intersegment elimination	(485)		(531)		(663)		(26.8)	(8.6)
TrueVisions after elimination	2,129	6.1%	2,513	6.7%	2,285	6.9%	(6.8)	(15.3)
Consolidated revenues	40,347		43,027		38,063		6.0	(6.2)
Intersegment elimination	(5,503)		(5,346)		(5,109)		7.7	2.9
Consolidated revenues - net	34,844	100%	37,681	100.0%	32,955	100%	5.7	(7.5)

Remark: TrueOnline's other revenues include revenues related to network O&M, digital platform and privilege programs.

7

Consolidated Balance Sheet and Cash Flows

(Unaudited)	31 Mar 20	31 Dec 19	% Change
(Baht in millions unless otherwise indicated)
Balance Sheet
Cash and cash equivalents	12,866	49,405	(74.0)
Trade accounts receivable, net	37,866	37,396	1.3
Other receivables	9,307	10,217	(8.9)
Other current assets	40,739	37,432	8.8
Total current assets	100,778	134,449	(25.0)
Property, plant and equipment, net	212,943	228,962	(7.0)
Goodwill, net	9,994	9,994	0.0
Intangible assets, net	126,656	114,622	10.5
Deferred income tax assets	4,925	3,275	50.4
Other non-current assets	149,030	32,690	355.9
Total non-current assets	503,548	389,543	29.3
Total assets	604,326	523,993	15.3
Short-term borrowings	13,880	16,663	(16.7)
Trade accounts payable	65,236	65,935	(1.1)
Other payables	32,191	43,430	(25.9)
Current portion of long-term borrowings	28,507	18,037	58.0
Other current liabilities	17,974	7,086	153.7
Total current liabilities	157,788	151,150	4.4
Long-term borrowings	165,415	178,030	(7.1)
Deferred income tax liabilities	5,574	6,271	(11.1)
Liabilities under agreements and licenses for operations	41,697	38,598	8.0
Employee benefit obligations	3,839	3,750	2.4
Other non-current liabilities	145,451	20,175	NM
Total non-current liabilities	361,976	246,823	46.7
Total liabilities	519,764	397,974	30.6
Total shareholder's equity	84,562	126,019	(32.9)
Total liabilities and shareholder's equity	604,326	523,993	15.3

	31 Mar 20	31 Mar 19	% Change
Cash Flows
Cash flows from operating activities before interest and tax	2,520	3,101	(18.7)
Net interest and tax paid	(2,534)	(1,928)	31.4
Cash flows from operating activities (net)	(14)	1,173	NM
Cash flows (used in) from investing activities	(33,935)	(9,888)	243.2
Cash flows (used in) from financing activities	(2,620)	10,626	(124.7)
Net (decrease) increase in cash and cash equivalents	(36,569)	1,911	NM
Beginning cash balance and effects of exchange rate changes	49,435	20,709	138.7
Ending cash balance	12,866	22,620	(43.1)

8

FINANCIAL POSITION

True Group is in compliance with and meets all of its debt obligations. At the end of 1Q20, net debt to equity ratio increased to 2.3 times as the impairment of lease assets was deducted from retained earnings at the beginning of the year following the TFRS 16 adoption while net debt to EBITDA ratio increased to 5.1 times with higher debt level to support continued business expansion. The Group's current ratio improved YoY to 0.6 times driven by lower accrued expenses as a result of the 900MHz payment extension. Its ROE was 3.8% while net profit margin, excluding the TFRS 16 impact, was 0.1% in 1Q20.

Financial Ratios
		1Q20	4Q19	1Q19
Current Ratio	Times	0.6	0.9	0.5
Net Debt to EBITDA	Times	5.1	4.6	2.5
Net Debt to Equity	Times	2.3	1.2	1.1
Return on Equity (ROE)	%	3.8	4.4	7.1
Net Profit Margin
(excl. TFRS16 impact as well as gain related to asset sale to DIF
and unitholding in the fund)	%	0.1	-1.6	1.0

Assets

• True Group's assets increased 15.3% from the end of 2019 to Baht 604.3 billion mainly due to Right-of-useassets totaling Baht 113.8 billion following the TFRS 16 adoption (see more detail in the note to financial statements section 4 and 13).
• Property, plant and equipment (net) decreased 7.0% from the end of 2019 to Baht 212.9 billion due to TFRS 16 effect as lease assets previously recorded under property, plant and equipment is now recorded under rights-of-use assets.
• Intangible assets (net) increased 10.5% from the end of 2019 to Baht 126.7 billion on acquisition of the 2600 MHz spectrum license during the quarter.
• Investment in associates and interest in joint ventures was flat from the end of 2019 at Baht 26.2 billion (see more detail in the note to financial statements section 11).
• Trade account receivables (net) increased 1.3% from the end of 2019 to Baht 37.9 billion along with the Group's business expansion (see more detail in the note to financial statements section 10). Average collection period decreased from 94 at the end of 2019 to 92 days.

	Consolidated	Separate
	financial information	financial information
	31 March	31 December	31 March	31 December
	2020	2019		2020	2019
	Baht Million	Baht Million	Baht Million	Baht Million
Receivable from TOT	332.97	343.35		332.97	343.35
Billed customers	18,662.39	20,610.57		868.84	860.59
Receivables and accrued income
from related parties (Note 23)	13,849.34	12,985.49		11,378.81	10,824.74
Trade accounts receivable	32,844.70	33,939.41		12,580.62	12,028.68
					9

Accrued income	12,162.89	10,420.15	2,268.93	2,268.96
Total trade accounts receivable	45,007.59	44,359.56	14,849.55	14,297.64
LessExpected credit loss	(7,141.33	)	(6,964.03)	(2,989.74	)	(2,990.01)
Trade accounts receivable, net	37,866.26	37,395.53	11,859.81	11,307.63

At 31 March 2020 and 31 December 2019, trade receivables, included in trade and other receivables in statements of financial position, can analyse aging as follows:

		Consolidated	Separate
		financial information	financial information
		31 March	31 December	31 March	31 December
		2020		2019	2020		2019
		Baht Million	Baht Million	Baht Million	Baht Million
Current	9,535.59	10,586.64	1,179.42	2,369.28
Less than 3 months	9,119.47	9,547.15	1,881.92	4,071.14
3 - 6 months	4,301.64	3,312.06	2,306.51	428.18
6 - 12 months	3,198.06	2,517.01	1,560.09	1,547.56
More than 12 months	6,689.94	7,976.55	5,652.68	3,612.52
Trade accounts receivable	32,844.70	33,939.41	12,580.62	12,028.68
Accrued income	12,162.89	10,420.15	2,268.93	2,268.96
Total trade accounts receivable	45,007.59	44,359.56	14,849.55	14,297.64
LessExpected credit loss	(7,141.33	)	(6,964.03)	(2,989.74	)	(2,990.01)
Trade accounts receivable, net		37,866.26	37,395.53	11,859.81	11,307.63

Liabilities

• True Group's total liabilities increased 30.6% from the end of 2019 to Baht 519.8 billion primarily from lease liabilities (current and non-current portion) of Baht 136 billion as a result of the TFRS 16 adoption this year (see more detail in the note to financial statements section 17).
• Interest bearing debt (short-term and long-term borrowings excluding financial leases) increased 1.3% from year end to Baht 207.8 billion in order to support the Group's business expansion and license fee payments of which the 900 MHz and 2600 MHz installments were paid during the quarter.
• Trade accounts payable declined 1.1% from the end of 2019 to Baht 65.2 billion driven by vendor payments during the period.

Shareholders' equity

• Shareholders' equity declined to Baht 84.6 billion directly driven by the effect from the TFRS 16 adoption totaling Baht 38 billion, mainly asset impairment, which was deducted from retained earnings at the beginning of the year to reflect value of lease assets in use.

Cash Flow

• True Group's primary capital resources in 1Q20 were cash flows from financing activities with additional borrowings to support the Group's business expansion and spectrum license payments. Net cash used in financing activities in 1Q20 as reported in

10

the financial statement was Baht 2.6 billion driven by TFRS 16 adoption with a record of repayments to lease liabilities of Baht 5.3 billion under financing cash flows; excluding this, cash flows from financing activities was Baht 2.7 billion.

• Cash flows from operating activities in 1Q20 were Baht 2.5 billion before interest and tax and negative Baht 13.5 million after interest and tax payments, declining YoY on higher working capital requirements as well as interest and tax payments.
• Cash flows used in investing activities increased YoY to Baht 33.9 billion in 1Q20 mainly due to acquisition of intangible assets totaling 27 billion as cash payments for the 900 MHz and 2600 MHz installments were made in the first quarter of 2020. Cash CAPEX on PPE declined to Baht 7.3 billion.
• True Group ended the first quarter of 2020 with cash and cash equivalents of Baht 12.9 billion.

Significant event in 1Q20

In February 2020, TUC won the bidding for 2600 MHz (90 MHz) and 26 GHz (800 MHz) spectrum licenses for the period of 15 years at the bidding price of Baht 17,872.89 million and Baht 3,576.89 respectively

Spectrum	Range	Bandwidth	Price (Baht million)
2600 MHz	2600 - 2690 MHz	90 MHz	17,872.89
26 GHz	24.3 - 25.1 GHz	800 MHz	3,576.89

Adoption of new financial reporting standards

The Group has adopted financial reporting standards relating to financial instruments (TAS 32, TFRS 7 and TFRS 9) and leases standard (TFRS 16) retrospectively from 1 January 2020, but has not restated comparatives for the 2019 reporting period, as permitted in the standards. The reclassifications and the adjustments arising from the changes in accounting policies are therefore recognized in the statement of financial position on 1 January 2020.

The Group has adopted new accounting guideline for investment in associates investing in Infrastructure Fund which described in Note 5 due to the Thai Accounting standard No. 106 (TAS 106) accounting for investment companies has been superseded by TFRS 9 for the period beginning on or after 1 January 2020.

The following tables show the adjustments made to the amounts recognised in each line item in the statement of financial position upon adoption of the financial reporting standards relate to financial instruments (TAS 32 and TFRS 9) and leases standard (TFRS 16) and adjustments from change in accounting standards of associate:

Consolidated financial information

At		TFRS 16	Adjustments	At
31 December	TAS 32	Reclassifications	from change in	1 January
2019	and TFRS 9	and adjustments	accounting	2020
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	Previously	Reclassifications		standards of	Restated
	reported	and adjustments		associate
	Baht Million	Baht Million	Baht Million	Baht Million	Baht Million
Statement of financial position
Trade and other receivable	47,612.58	(218.79)	(2,588.71)	-	44,805.08
Short-term investment	1.13	(1.13)	-	-	-
General investments	1,071.67	(1,071.67)	-	-	-
Financial assets at fair value
through profit or loss	-	711.68	-	-	711.68
Financial assets at fair value
through other comprehensive
income	-	401.72	-	-	401.72
Other financial assets at		1.02		-	1.02
amortised cost	-	-
Investment in available for sale				-	-
securities	141.25	(141.25)	-
Other current assets	5,897.33	(0.37)	-	-	5,896.96
Investment in associates and		-		(186.87)	25,972.52
interests in joint ventures	26,159.39	-
Investment property	1,319.61	-	(101.83)	-	1,217.78
Property, plant and equipment	228,962.45	-	(20,476.40)	-	208,486.05
Right-of-use assets	-	-	108,009.37	-	108,009.37
Intangible assets	115,130.82	-	(2,044.95)	-	113,085.87
Deferred income tax assets	3,275.16	41.51	2,066.74	-	5,383.41
Trade and other payable	(109,365.09)	-	50.53	-	(109,314.56)
Other current liabilities	(6,910.15)	816.78	-	-	(6,093.37)
Other non-current liabilities	(13,636.20)	2,442.55	-	-	(11,193.65)
Financial liabilities at fair value
through profit or loss	-	(3,248.08)	-	-	(3,248.08)
Current portion of lease liabilities	-	-	(13,002.62)	-	(13,002.62)
Current portion of long-term
borrowings	(18,037.02)	-	1,934.64	-	(16,102.38)
Long-term borrowings	(178,029.70)	-	5,740.54	-	(172,289.16)
Lease liabilities	-	-	(118,476.63)	-	(118,476.63)
Liabilities under agreements
and licenses for operation	(61,839.01)	-	2,364.66	-	(59,474.35)
Provisions	(3,507.12)	-	(1,231.64)	-	(4,738.76)
Non-controlling interests	651.20	-	(0.31)	-	650.89
Deficits	(33,630.89)	(266.03)	(37,756.61)	(186.87)	(71,840.40)

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