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OPPORTUNITY DAY @ SET 31 August 2007 Industry Overview
Financial Highlights
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High Growth Rate – Recovers Fast
TV Advertising Trend: YoY '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 Growth 34% 25% 14% 19% 10% -15% 11% 18% 8% 13% 12% 6% 7% High Growth Rate – Recovers Fast Source: AGB Nielsen Media Research
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TV ADEX-2003-2006 TV Adex Ch.3 Ch.5 Ch.7 Ch.9 Ch.11 iTV Industry 2006
11,392 8,549 14,627 7,684 1,505 9,239 53,475 2005 10,392 8,238 14,010 6,956 1,171 9,244 50,011 2004 10,806 7,866 13,734 6,443 970 7,351 47,170 2003 10,857 7,923 12,030 4,554 996 5,928 42,288 ’06 YoY 14.2% 3.8% 4.4% 10.5% 28.5% 17.3% 6.9% '05 YoY -3.8% 4.7% 2.0% 8.0% 20.7% 25.8% 6.0% '04 YoY -0.5% -0.7% 41.5% -2.6% 24.0% 11.5% Source: AGB Nielsen Media Research
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Advertising Expenditure Trends:
ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM 2Q (APRIL - JUNE) 07 VS 06 BAHT MILLIONS MEDIA 2Q SOV% Q SOV% DIFF % Change TV , , (1,242) RADIO , , (68) NEWSPAPERS 3, , MAGAZINES , , (157) CINEMA , OUTDOOR , , (58) TRANSIT (8) IN STORE TOTAL , , (730) Source: AGB Nielsen Media Research
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Advertising Spends on TV 2Q’07 vs 2Q’06
Baht:Millions -8.2% +6.3% +0.9% -26.5% -19.3% -27.2% Source: AGB Nielsen Media Research
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Advertising Expenditure Trends:
ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM 1H 07 VS 06 BAHT MILLIONS MEDIA 1H SOV% H SOV% DIFF % Change TV , , (847) (3.22) RADIO , , (171) (5.32) NEWSPAPERS 7, , (402) (5.18) MAGAZINES , , (105) (3.55) CINEMA , , OUTDOOR , , (79) (3.41) TRANSIT (51) (10.90) IN STORE TOTAL , , (208) (0.47) Source: AGB Nielsen Media Research
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Advertising Spends on TV 1H’07 vs 1H’06
Baht : Millions -2.9% +8.4% +2.5% -12.0% -16.5% -12.7% Source: AGB Nielsen Media Research
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Exclude Government and Music Spending:
Top 20 Advertisers on Television 1H07: 1H/07 1H/06 %CHG 3 5 7 9 ITV ADVERTISER (000 BAHT) UNILEVER (THAI) 2,451,516 2,302,717 6.5% 18.8% -6.7% -0.6% 13.1% 8.4% PROCTER & GAMBLE 698,114 717,175 -2.7% -8.1% -40.3% 19.8% -46.0% -53.5% BEIERSDORF (THAILAND) 491,927 453,248 8.5% 22.2% 26.9% 0.1% 114.0% -22.9% COLGATE-PALMOLIVE 478,252 386,540 23.7% 40.7% 223.4% -4.0% 218.3% 30.7% L'OREAL (THAILAND) 449,513 260,483 72.6% 71.7% 578.4% 38.1% 78.9% 54.1% NESTLE(THAI) LTD. 445,914 469,689 -5.1% 25.6% -34.7% 3.5% -38.6% -55.9% KAO COMMERCIAL 375,565 333,709 12.5% 19.5% 54.5% 16.7% -19.9% -15.6% ADVANCE INFO SERVICE 352,588 364,440 -3.3% 39.2% 73.0% 1.6% 55.0% -53.7% JOHNSON&JOHNSON 343,660 272100 26.3% 19.6% 44.8% 56.0% LION (THAILAND) 315,838 235607 34.1% 29.9% 128.8% 18.9% 10.4% 5.3% OSOTSPA- TECK HENG YOO 315,011 366,180 -14.0% -18.1% 23.0% -27.1% 22.6% -16.2% AJINOMOTO SALES 280,667 287,053 -2.2% 9.6% 14.4% 2.5% -15.4% -17.8% TOTAL ACCESS COMM. 271,940 271,563 47.7% -14.1% 3.7% -29.9% -51.1% TRI PETCH ISUZU 270,971 219,248 23.6% 2.2% 20.1% 49.2% 29.3% TOYOTA MOTOR 269,030 385,692 -30.2% -29.4% 88.3% -46.1% -36.2% -53.6% PTT PUBLIC CO.,LTD. 235,117 334,679 -29.7% -39.5% 5.9% -72.5% -42.5% -21.7% SIAM CEMENT GROUP 194,198 157,731 23.1% 53.7% 134.6% -16.8% 37.2% UNICHARM (THAILAND). 193,437 133,947 44.4% 70.8% -4.5% 81.4% 63.3% -4.8% CEREBOS(THAILAND) 191,394 139,466 86.0% 48.3% 15.3% -64.2% SIAM COMMERCIAL BANK 187,683 24312 672.0% 708.0% 971.0% 1028.2% 718.2% 229.5% Exclude Government and Music Spending: Source: AGB Nielsen Media Research
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Exclude Government and Music Spending:
Top 20 Advertisers on Television 1H07: Grand Total 3 5 7 9 TITV ADVERTISER (000 BAHT) % UNILEVER (THAI) 2,451,516 22.4% 8.2% 32.4% 11.3% 25.6% PROCTER & GAMBLE 698,114 40.9% 5.2% 50.1% 1.5% 2.3% BEIERSDORF (THAILAND) 491,927 40.1% 4.6% 32.8% 7.6% 14.9% COLGATE-PALMOLIVE 478,252 48.2% 2.4% 35.4% 4.0% 10.1% L'OREAL (THAILAND) 449,513 28.1% 12.5% 29.4% 11.4% 18.5% NESTLE(THAI) LTD. 445,914 38.5% 4.7% 44.5% 5.3% 7.0% KAO COMMERCIAL 375,565 29.8% 11.8% 40.4% 6.0% ADVANCE INFO SERVICE 352,588 24.3% 39.4% 9.1% 15.4% JOHNSON&JOHNSON 343,660 37.6% 13.4% 30.4% 11.2% 7.4% LION (THAILAND) CO.,LTD. 315,838 20.3% 17.3% 10.3% 24.1% OSOTSPA (TECK HENG YOO) 315,011 28.3% 14.0% 24.7% 15.8% 15.1% AJINOMOTO SALES 280,667 25.2% 12.9% 35.3% 7.5% 19.2% TOTAL ACCESS COMM. 271,940 35.7% 37.2% 10.0% TRI PETCH ISUZU SALES 270,971 23.0% 16.8% 14.8% 24.8% 20.4% TOYOTA MOTOR THAILAND 269,030 25.7% 22.3% 23.9% 16.9% 10.6% PTT PUBLIC CO.,LTD. 235,117 21.6% 19.5% SIAM CEMENT GROUP 194,198 28.7% 10.2% 32.2% 18.7% UNICHARM (THAILAND) 193,437 27.3% 38.6% 8.7% CEREBOS(THAILAND) 191,394 43.8% 32.0% 12.7% 3.9% SIAM COMMERCIAL BANK 187,683 16.4% 26.0% 11.6% Exclude Government and Music Spending: Source: AGB Nielsen Media Research
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Top Gainers 1H’07 Rank (Bahtx1,000) FIRST HALF 2007 Changes 1H07-06
No. PRODUCT SECTION Amt. % 1 SKIN CARE PREPARATION 2,553,057 10.0% 445,568 21.1% 2 TOILETRIES 1,448,190 5.7% 168,457 13.2% 3 SUNDRIES 233,514 0.9% 156,320 202.5% 4 BANKS 370,046 1.5% 110,281 42.5% 5 FOODSTUFFS 1,062,335 4.2% 103,463 10.8% 6 VITAMIN & SUPP. FOOD 449,591 1.8% 99,544 28.4% 7 HOUSEHOLD CLEANER… 934,905 3.7% 95,207 11.3% 8 REAL ESTATE 268,321 1.1% 93,261 53.3% 9 ORAL PRODUCT 641,393 2.5% 66,930 11.7% 10 EDUCATIONAL INSTITU… 195,618 0.8% 66,415 51.4% Source: AGB Nielsen Media Research
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Top Losers 1H’07 Rank (Bahtx1,000) FIRST HALF 2007 Changes 1H07-06 No.
PRODUCT SECTION Amt. % 45 PETROL 211,315 0.8% -82,751 -28.1% 46 DAIRY PRODUCT 832,832 3.3% -92,370 -10.0% 47 SNACK FOOD 393,774 1.5% -96,556 -19.7% 48 NON ALCHOHOLIC BEVER.. 1,660,119 6.5% -126,390 -7.1% 49 CERDIT/DEBIT CARDS 164,339 0.6% -143,808 -46.7% 50 GOVERNMENT & COMMU… 1,250,263 4.9% -240,257 -16.1% 51 CD/VDO & MUSIC PRO… 899,494 3.5% -242,215 -21.2% 52 COMMUNICATIONS 1,222,048 4.8% -369,272 -23.2% 53 ALCOHOLIC BEVERAGES 365,103 1.4% -483,956 -57.0% 54 LEISURE 1,060,496 4.2% -494,398 -31.8% Source: AGB Nielsen Media Research
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STATION SHARE OF AUDIENCE 2006 - 2007 WHOLE KINGDOM : ALL AGED 4+
POTENTIAL 2005 : : 59,400,000 ; 2007 :60,107,000 Source: AGB Nielsen Media Research
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STATION SHARE OF AUDIENCE 2006 - 2007 WHOLE KINGDOM : ALL AGED 4+
POTENTIAL 2005 : : 59,400,000 ; 2007 :60,107,000 Source: AGB Nielsen Media Research
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2nd Quarter of 2007 Highlights:
Baht:Millions 2Q07 +/- QoQ +/- YoY Advertising 1,711 6.2% 7.3% Copyright & Services 54 11.8% -38.0% Concerts & Shows 32 -67.5% -26.2% Total Sales Revenue 1,797 1.5% 4.1% Net Earnings % %
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BEC World 2Q07 Operating Results BEC World Second Quarter of 2007
฿ Million % +/- YoY +/- QoQ Total Sales Revenues 1,797 100% 72 4% 26 2% Operating Costs Cost of Services 687 39% -41 -6% 33 5% Cost of Shows 28 87% -19 -41% -51 -65% Cost of Sales & Services 715 40% -60 -8% -18 -2% Selling & Admin. Expenses 313 17% 1 - 23 8% Total Operating Costs 1,028 57% -59 5 1% Operating Profit 769 43% 131 21% 21 3% Share of Associates' Results -10 -1% -7% 6 -36% Other Income 67 42 172% 31 Profit Before Tax 826 46% 174 27% 57 Corporate Income Tax 229 13% 36 18% 12 Profit After Tax 596 33% 138 30% 46 Profit of Minority's Interest 8 15 -213% -1 -14% NET PROFIT 588 123 47 9%
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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)
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