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2 BEC World plc. 1Q09 Results SET Opportunity Day June 05, 2009 Company ’ s background Industry Overview Financial Highlights 2009 Outlooks.

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Presentation on theme: "2 BEC World plc. 1Q09 Results SET Opportunity Day June 05, 2009 Company ’ s background Industry Overview Financial Highlights 2009 Outlooks."— Presentation transcript:

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2 2 BEC World plc. 1Q09 Results SET Opportunity Day June 05, 2009 Company ’ s background Industry Overview Financial Highlights 2009 Outlooks

3 3 Company Background:  Over 39 years of experience in television.  11 more years to go under the existing license.  Concession fees were duly fixed.  Much more than an ordinary television company.

4 4 2008 Revenue: Advertising Revenues are dominant part of our revenues.

5 5 The Businesses: Broadcasting & Media:  An operator of a nation-wide free terrestrial TV network, known as Channel 3.  An operator of 2 FM radio stations in Bangkok.  The owner of Thai popular web-sites “ ThaiTV3.Com ” ; “ BECNews.Com ”

6 6 The Businesses: Sourcing, Producing, Promoting & Distributing Programmes:  Well established in Thai entertainment industry.  Huge Library, used mainly on Channel 3.  Expanding to other types of entertainment activities:  Live Shows, Sport Events, etc.

7 7 TV Advertising Trend: High Growth Rate – Recovers Fast Source: AGB Nielsen Media Research '95'96'97'98'992000'01'02'03'04'05'06'07'08 13.7%18.6%9.9% - 15.1% 11.4%17.7%7.9%13.6%13.3%11.5%6.0%6.9%0.0% - 4.4% Major Change in ’08 as T-PBS started. Trend was disrupted.

8 8 Source: AGB Nielsen Media Research Advertising Expenditure Trends: Baht : Millions

9 9 Advertising Expenditure Trends: Source: AGB Nielsen Media Research ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM 1 st QUARTER ’09 VS ’08 BAHT MILLIONS MEDIA 1Q09 SOV% 1Q08 SOV%DIFF % Change TV 12,055 59.3 11,779 56.6 279 2.34 RADIO 1,322 6.5 1,508 7.2 (186) (12.33) NEWSPAPERS 3,173 15.6 3,631 17.4 (458)(12.61) MAGAZINES 1,127 5.5 1,313 6.3 (186)(14.17) CINEMA 961 4.7 979 4.7 (18) (1.84) OUTDOOR 1,010 5.0 1,091 5.2 (81) (7.42) TRANSIT 440 2.2 318 1.5 122 38.36 IN STORE 186 0.9 167 0.8 19 11.38 INTERNET 42 0.2 43 0.2 (2) (2.33) TOTAL 20,315 100.00 20,827 100.00 (512) (2.46)

10 10 Source: AGB Nielsen Media Research Advertising Spends on TV 1st QUARTER ’ 09 vs. ’ 08 Baht : Millions +8.9%

11 11 Source: AGB Nielsen Media Research ADVERTISER (x1,000BAHT) 1Q ’ 091Q ’ 08 % YoY 3579NBT %CHG UNILEVER (THAI) HOLDINGS997,7411,022,991 -2.5%1.7% 8%-37.5%56.5% BEIERSDORF (THAILAND)537,665231,545 132.2%267.5% 114.6%16.8%83.5% PROCTER & GAMBLE (THAILAND)378,787424,614 -10.8%-13.8% 85.3%-32.7%214.1% L'OREAL (THAILAND)349,557236,938 47.5%13.2% 155.5%44.5%212.2% COLGATE-PALMOLIVE (THAILAND)286,074189,534 50.9%46.3% 92.1%-8.9%336.5% NESTLE (THAI)233,124216,391 7.7%12.4% 19.9%1.2%-22.0% JOHNSON & JOHNSON THAILAND197,399169,567 16.4%53.5% -3.3%-15.4%-7.7% OSOTSPA CO.,LTD.184,154221,022 -16.7%10.0% -51.7%-1.5%-8.5%-13.1% GMM GRAMMY Plc.152,704115,726 32.0%0.0% 52.1%-44.4%0.2% CEREBOS(THAILAND)LTD.149,399114,402 30.6%28.2% 38.6%31.0%30.9% PTT PUBLIC CO.,LTD.139,469137,894 1.1%41.0% 5.9%37.7%-29.5%72.1% ADVANCE INFO SERVICE138,92497,126 43.0%31.6% 131.5%14.9%88.8%3,068.5% KAO COMMERCIAL (THAILAND)133,851146,328 -8.5%-7.5% 26.6%-18.0%-23.6% BETTER WAY (THAILAND)132,644112,956 17.4%56.6% -7.7%65.9%-16.3% TOYOTA MOTOR THAILAND122,322192,893 -36.6%-55.3% -16.6%-57.0%-33.3%83.3% LION (THAILAND) CO.,LTD.119,70298,400 21.6%5.5% 64.7%9.2%4.8% COCA-COLA (THAILAND)113,09185,349 32.5%53.1% -33.5%86.3%-3.4%-56.2% SINGHA CORPORATION CO.,LTD.96,28731,394 206.7%617.2% 106.7%194.5%276.6%7.0% OFFICE OF THE PRIME MINISTER93,34857,630 62.0%125.1% 742.2%635.1%152.1%-28.7%

12 12 Market Shares 1Q 2009: Source: AGB Nielsen Media Research

13 13 Baht:Millions 1Q’09 +/- YoY Advertising1,834.0-3.6% Copyright & Services36.2-9.4% Concerts & Shows129.3+6.6% Total Sales Revenue 1,999.4-3.1% 1Q ’ 09 Highlights: Net Earnings 544.2 -18.8%

14 14 BEC World Operating Results BEC World 1Q’09 Operating Results: Operating Results฿ Million % +/- YoY Total Sales Revenues1,999.4100%-63.3 - 3% Operating Costs Cost of Services 759.141% 78.6 +12% Cost of Shows 117.391% 14.3 +14% Cost of Sales & Services 876.444% 92.9 +12% Selling Expenses 106.8 5% 12.2 +13% Admin. Expenses 252.513% 33.8 +16% Total Operating Costs1,235.762% 138.8 +13% Operating Profit 763.738%-202.1 - 21% Share of Associates' Results 0 0% 43.3+100% Other Income 33.3 2% 1.0 +3% Profit Before Tax797.040%-157.9 - 16% Corporate Income Tax 240.312%- 37.0 - 13% Profit After Tax 556.728%-120.8 - 18% Profit of Minority's Interest 12.4 1% 4.8 +63% NET PROFIT 544.2 27%-125.6-19%

15 15 1Q ’ 09 Highlights: Top 10 advertisers  increased their spending with us 4.6% YoY, (1.5%QoQ), accounted for about 37% of our advertising revenue, 3.2 points higher YoY and 5.0 points QoQ.  6 out of these 10 increased their spending with us YoY; 5 increased QoQ.  2 out of these 10 increased over 50% YoY, and 2 also did QoQ.

16 16 1Q ’ 09 Highlights: Second top 10 advertisers  increased their spending with us 15.1% yoy (23.8% QoQ), accounted for about 11% of our advertising revenue, about 1.8 points higher YoY, and 3.4 points QoQ.  6 out of these 10 increased their spending YoY, 7 increased QoQ.  2 out of these 10 increased over 50% YoY, and 5 also did QoQ.

17 17 Source: AGB Nielsen Media Research Advertising Spends on TV Jan – Jun ’ 09 vs. ’ 08 Baht : Millions -3.1% MoM -6.5% YoY +6.9%

18 18 Advertising Spends on TV April ’ 09 vs. ’ 08 Baht : Millions Source: AGB Nielsen Media Research +2.4%

19 19 Source: AGB Nielsen Media Research ADVERTISER (X1,000 BAHT) Apr’09Apr’08 % YoY 3579NBT %CHG UNILEVER (THAI) HOLDINGS385,925375,8002.7%96.3%32.6%-84.9%68.4% BEIERSDORF (THAILAND)118,94483,62542.2%110.6%49.6%-31.1%20.2% OSOTSPA CO.,LTD.103,37686,10820.1%12.2%-24.5%37.1%64.7%120.7% L'OREAL (THAILAND) LTD.97,58296,1621.5%-2.8%24.0%7.9%-23.2% NESTLE(THAI) LTD.84,712113,523-25.4%-17.3%91.8%-41.5%-0.5%-54.2% PROCTER & GAMBLE THAILAND71,864101,702-29.3%-11.6%-1.4%-45.3%-12.6% TOYOTA MOTOR THAILAND64,89186,257-24.8%-45.7%-1.5%-54.2%1.2%-71.3% JOHNSON&JOHNSON THAILAND64,56535,26683.1%90.4%179.1%36.5%100.6% COLGATE-PALMOLIVE THAILAND63,79071,644-11.0%-31.5%-2.0%-33.2%444.9%53.2% COCA-COLA (THAILAND)61,62719,598214.5%242.8%150.1%291.3%159.3%-60.0% AJINOMOTO SALES59,17944,27733.7%-18.4%37.8%50.5%82.1% OFFICE OF THE PRIME MINISTER57,79660,819-5.0%177.2%116.5%55.4%-56.5%-34.2% GMM GRAMMY PUBLIC CO.,LTD.44,93537,76719.0% 38.1%-26.5%-18.2% LION (THAILAND) CO.,LTD.43,71839,57310.5%-25.0%25.9%28.6%36.7% KAO COMMERCIAL (THAILAND)41,87555,434-24.5%-29.8%1.2%-13.5%-68.8% PTT PUBLIC CO.,LTD.40,151101,615-60.5%-55.1%-43.9%-87.5%-52.3%-71.5% AMERICA INTERใ ASSURANCE39,2357,654412.6%349.4%431.2%258.7%1,021.6% PEPSI-COLA (THAI) TRADING33,56827,59921.6%-1.6%39.0%-43.4%1,562.4% BIO CONSUMER32,42324,54332.1%31.5%45.2%26.3%38.8% BETTER WAY (THAILAND)32,26423,34938.2%37.3%26.3%36.7%121.9%

20 20 Industry Reform:  The Broadcasting Bill is now effective.  The reform is about to begin.  The reform is “ blessing in disguised ” for BEC as the industry will be more transparent and orderly.  Long awaited new investment opportunities in domestic market will be opened for BEC.

21 21 High Operating Leverage: As our operating costs and expenses are mostly fixed in nature, thus BEC World has high operating leverage. Our profitability will improve greater than the growth rate of our revenue growth. Revenue and Profit Growth (1Q99 is BASE)

22 22 BEC’s Dividend History: BEC World intends to grow its dividend as well as to retain high payout ratio. With our ability to make profit and the fact that we normally generates more cash than the reported profit, thus these objectives are not that difficult. Baht per share

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