2 BEC World Plc. Presentation for Investors SET OPORTUNITY DAY 21 September 2006 Industry Overview Financial Highlights
3 Advertising Expenditure Trends: Source: Nielsen Media Research ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM YTD JANUARY- AUGUST 06 VS 05 BAHT MILLIONS MEDIAYTD 06 SOV% YTD 05 SOV%DIFF% Change TV 35, , , RADIO 4, , NEWSPAPERS 10, , (237) -(2.27) MAGAZINES 3, , CINEMA 1, OUTDOOR 3, , TRANSIT IN STORE TOTAL 58, , ,
4 TV Advertising Trend: High Growth Rate – Recovers Fast Source: Nielsen Media Research YoY'93'94'95'96'97'98'992000'01'02'03'04'05 Growth34%25%14%19%10%-15%11%18%8%14%13%12%6%
5 TV ADVERTISING EXPENDITURE : Rank (Bahtx1,000) First Half 2006Changes 06-05First Half 2005 PRODUCT SECTION Amt.% % % 1SKIN CARE PREPARATION 2,107,4898.0%459, %1,647,7306.7% 2NON ALCHOHOLIC BEVER.. 1,786,5096.8%-141, %1,928,0777.9% 3COMMUNICATIONS 1,591,3206.0%-402, %1,993,8838.2% 4LEISURE 1,554,8945.9%141, %1,413,7375.8% 5GOVERNMENT & COMMU… 1,490,5205.6%131,6549.7%1,358,8665.6% 6TOILETRIES 1,279,7334.8%-111, %1,391,1665.7% 7HAIR PREPARATION 1,204,2134.6%134, %1,070,0434.4% 8CD/VDO & MUSIC PRO… 1,141,7094.3%-266, %1,407,9645.8% 9MOTOR VEHICLES 1,056,1144.0%295, %760,1323.1% 10FOODSTUFFS 958,8723.6%-35, %993,9454.1% 11DAIRY PRODUCT 925,2023.5%243, %681,5722.8% 12MEDIA & MARKETING 882,9143.3%18,9542.2%863,9603.5% 13ALCOHOLIC BEVERAGES 849,0593.2%106, %742,6403.0% 14HOUSEHOLD CLEANER… 839,6983.2%285, %553,7822.3% 15ORAL PRODUCT 574,4632.2%125, %448,6411.8%
6 (Baht x 1,000) First Half of 2006Changes 06-05First Half of 2005 PRODUCT SECTION Amt.% % % SKIN CARE PREPARATION 2,107,4898.0%459, % 1,647,7306.7% MOTOR VEHICLES 1,056,1144.0%295, % 760,1323.1% HOUSEHOLD CLEANER… 839,6983.2%285, % 553,7822.3% DAIRY PRODUCT 925,2023.5%243, % 681,5722.8% PETROL 294,0661.1%234, % 59,5550.2% INSURANCE 301,7901.1%197, % 104,6740.4% RETAIL STORES 476,6771.8%167, % 308,7241.3% CERDIT/DEBIT CARDS 308,1471.2%155, % 152,1750.6% BAKERY & CHOCOL., etc. 319,6181.2%142, % 177,5010.7% LEISURE 1,554,8945.9%141, % 1,413,7375.8% FOOD OUTLET & RESTAU.. 522,2982.0%140, % 381,9521.6% HAIR PREPARATION 1,204,2134.6%134, % 1,070,0434.4% MOTORCYCLE & BICYCLE 411,9881.6%133, % 278,9871.1% GOVERNMENT & COMMU… 1,490,5205.6%131, % 1,358,8665.6% ORAL PRODUCT 574,4632.2%125, % 448,6411.8% TV ADVERTISING EXPENDITURE :
7 TV ADEX TV AdexCh.3Ch.5Ch.7Ch.9Ch.11iTV Industr y ,392 8,238 14,010 6,956 1,171 9,244 50, ,806 7,866 13,734 6, ,351 47, ,857 7,923 12,030 4, ,928 42,288 '05 YoY -3.8%4.7%2.0%8.0%20.7%25.8%6.0% '04 YoY -0.5%-0.7%14.2%41.5%-2.6%24.0%11.5%
8 Advertising Spends on TV YTD 2006 vs YTD 2005 Millions Baht +15.5% +19.5% +4.8% +12.0% -3.4% Source: Nielsen Media Research
9 Top 20 Advertisers on Television YTD Aug ’ 06: Source: Nielsen Media Research TV Grand Total 3579ITV11 ADVERTISER (000 BAHT)%%% UNILEVER (THAI) HOLDINGS3,184, %10.0%34.3%10.2%25.5% PROCTER & GAMBLE (THAILAND)935, %7.8%41.0%3.2%3.8% BEIERSDORF (THAILAND) CO.,LTD.650, %4.8%34.7%3.8%19.8%0.1% NESTLE(THAI) LTD.592, %6.8%41.7%8.5%14.4%* COLGATE-PALMOLIVE(THAILAND)LTD506, %1.1%43.9%2.0%10.2% AJINOMOTO SALES CO.,(THAILAND)492, %11.8%31.1%10.1%23.6%0.9% TOYOTA MOTOR THAILAND CO.,LTD.481, %9.0%29.7%18.7%16.4%1.3% KAO COMMERCIAL (THAILAND) CO.,468, %8.6%39.5%10.1%14.8%0.1% OSOTSPA (TECK HENG YOO)466, %10.4%28.2%12.4%15.7%4.8% ADVANCE INFO SERVICE PCL.445, %6.9%37.1%5.4%32.5%1.0% PTT PUBLIC CO.,LTD.422, %13.9%17.0%27.1%13.7%9.6% L'OREAL (THAILAND) LTD.412, %4.3%35.7%11.7%22.8% JOHNSON&JOHNSON(THAILAND)LTD.412, %11.9%31.6%11.5%5.9% BOONRAWD BREWERY CO.,LTD.383, %20.4%26.3%11.1%16.6%5.0% TOTAL ACCESS COMMUNICATIONS343, %13.2%36.9%13.7%10.9%0.9% BEER THAI (1991) CO.,LTD.330, %25.0%14.8%13.9%22.2%8.6% LION (THAILAND) CO.,LTD.310, %15.5%19.7%12.7%30.2% TRI PETCH ISUZU SALES CO.,LTD.307, %17.2%15.3%21.1%20.0% A.P.HONDA CO.,LTD.228, %14.3%21.9%14.5%23.1%7.9% PEPSI-COLA (THAI) TRADING/SERM222, %7.6%36.6%15.4%15.3%
10 STATION SHARE OF AUDIENCE WHOLE KINGDOM : ALL AGED POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000 Source: Nielsen Media Research
11 AUDIENCE SIZE BY CHANNEL - WEEKDAY
12 TV VIEWING PATTERN BY AGE GROUP - WEEKDAY
13 AUDIENCE SIZE BY CHANNEL - WEEKEND
14 TV VIEWING PATTERN BY AGE GROUP- WEEKEND
15 Industry Reform: We shall see NBC and Broadcasting Bill shortly. 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.
16 2Q06 +/- QoQ +/- YoY Advertising1,5956%26% Copyright & Services8726%107% Concerts & Shows43-42%-89% Total Sales Revenue1,7255%1% 2nd Quarter of 2006 Highlights:
17 BEC World Second Quarter of 2006 BEC WorldSecond Quarter of 2006 Operating Results฿ Million % +/- YoY +/- QoQ Total Sales Revenues1,725100%111%845% Operating Costs Cost of Services72842%396%142% Cost of Shows473% %-18-28% Cost of Sales & Services77545% %-4-1% Selling & Admin. Expenses31318%0%2910% Total Operating Costs1,08863% %252% Operating Profit63737%28782%5910% Share of Associates' Results-11-1% % % Other Income251%632%-8-24% Profit Before Tax65138%27875%335% Corporate Income Tax19311%6348%2314% Profit After Tax45827%21588%102% Profit of Minority's Interest70%21-150%19-158% NET PROFIT46527%236103%297%
18 BEC WorldFirst Half 2006 Operating Results฿ Million % +/- YoY Advertising Income3,093179%71430% Copyright & Services1579%4034% Concerts & Shows1177% % Total Sales Revenues3,367195%2016% Operating Costs Cost of Services1,44284%473% Cost of Shows1137% % Cost of Sales & Services1,55590% % Selling & Admin. Expenses59635%10% Total Operating Costs2,151125% % Operating Profit1,21670%632108% Share of Associates' Results-40%1-20% Other Income573%1846% Profit Before Tax1,26974%651105% Corporate Income Tax36321%14164% Profit After Tax90653%510129% Profit of Minority's Interest-50%9-64% NET PROFIT90152%519136% BEC World First Half 2006
19 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)