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2 BEC World Plc. Presentation for Investors THAI CORPORATE DAY 11-13 October 2006 Industry Overview Financial Highlights.

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Presentation on theme: "2 BEC World Plc. Presentation for Investors THAI CORPORATE DAY 11-13 October 2006 Industry Overview Financial Highlights."— Presentation transcript:

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2 2 BEC World Plc. Presentation for Investors THAI CORPORATE DAY 11-13 October 2006 Industry Overview Financial Highlights

3 3 TV Advertising Trend: High Growth Rate – Recovers Fast Source: AGB 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%

4 4 Advertising Expenditure Trends: Source: AGB 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 35,542 60.27 32,963 59.05 2,579 7.82 RADIO 4,308 7.31 4,079 7.31 229 5.61 NEWSPAPERS 10,199 17.29 10,436 18.70 -(237) -(2.27) MAGAZINES 3,960 6.72 3,894 6.98 66 1.69 CINEMA 1,043 1.77 864 1.55 179 20.72 OUTDOOR 3,113 5.28 3,020 5.41 93 3.08 TRANSIT 633 1.07 485 0.87 148 30.52 IN STORE 175 0.30 80 0.14 95 118.75 TOTAL 58,971 100.00 55,820 100.00 3,151 5.64

5 5 TV ADVERTISING EXPENDITURE : Rank (Bahtx1,000) First Half 2006Changes 06-05First Half 2005 PRODUCT SECTION Amt.% % % 1SKIN CARE PREPARATION 2,107,4898.0%459,75927.9%1,647,7306.7% 2NON ALCHOHOLIC BEVER.. 1,786,5096.8%-141,568-7.3%1,928,0777.9% 3COMMUNICATIONS 1,591,3206.0%-402,563-20.2%1,993,8838.2% 4LEISURE 1,554,8945.9%141,15710.0%1,413,7375.8% 5GOVERNMENT & COMMU… 1,490,5205.6%131,6549.7%1,358,8665.6% 6TOILETRIES 1,279,7334.8%-111,433-8.0%1,391,1665.7% 7HAIR PREPARATION 1,204,2134.6%134,17012.5%1,070,0434.4% 8CD/VDO & MUSIC PRO… 1,141,7094.3%-266,255-18.9%1,407,9645.8% 9MOTOR VEHICLES 1,056,1144.0%295,98238.9%760,1323.1% 10FOODSTUFFS 958,8723.6%-35,073-3.5%993,9454.1% 11DAIRY PRODUCT 925,2023.5%243,63035.7%681,5722.8% 12MEDIA & MARKETING 882,9143.3%18,9542.2%863,9603.5% 13ALCOHOLIC BEVERAGES 849,0593.2%106,41914.3%742,6403.0% 14HOUSEHOLD CLEANER… 839,6983.2%285,91651.6%553,7822.3% 15ORAL PRODUCT 574,4632.2%125,82228.0%448,6411.8% Source: AGB Nielsen Media Research

6 6 (Baht x 1,000) First Half of 2006Changes 06-05First Half of 2005 PRODUCT SECTION Amt.% % % SKIN CARE PREPARATION 2,107,4898.0%459,759 27.9% 1,647,7306.7% MOTOR VEHICLES 1,056,1144.0%295,982 38.9% 760,1323.1% HOUSEHOLD CLEANER… 839,6983.2%285,916 51.6% 553,7822.3% DAIRY PRODUCT 925,2023.5%243,630 35.7% 681,5722.8% PETROL 294,0661.1%234,511 393.8% 59,5550.2% INSURANCE 301,7901.1%197,116 188.3% 104,6740.4% RETAIL STORES 476,6771.8%167,953 54.4% 308,7241.3% CERDIT/DEBIT CARDS 308,1471.2%155,972 102.5% 152,1750.6% BAKERY & CHOCOL., etc. 319,6181.2%142,117 80.1% 177,5010.7% LEISURE 1,554,8945.9%141,157 10.0% 1,413,7375.8% FOOD OUTLET & RESTAU.. 522,2982.0%140,346 36.7% 381,9521.6% HAIR PREPARATION 1,204,2134.6%134,170 12.5% 1,070,0434.4% MOTORCYCLE & BICYCLE 411,9881.6%133,001 47.7% 278,9871.1% GOVERNMENT & COMMU… 1,490,5205.6%131,654 9.7% 1,358,8665.6% ORAL PRODUCT 574,4632.2%125,822 28.0% 448,6411.8% TV ADVERTISING EXPENDITURE : Source: AGB Nielsen Media Research

7 7 TV ADEX-2003-2005 TV AdexCh.3Ch.5Ch.7Ch.9Ch.11iTV Industry 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 '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% Source: AGB Nielsen Media Research

8 8 Advertising Spends on TV YTD 2006 vs YTD 2005 Millions Baht +15.5% +19.5% +4.8% +12.0% -3.4% Source: AGB Nielsen Media Research

9 9 Top 20 Advertisers on Television YTD Aug ’ 06: Source: Nielsen Media Research TV Grand Total 3579ITV11 ADVERTISER (000 BAHT)%%% UNILEVER (THAI) HOLDINGS3,184,92420.0%10.0%34.3%10.2%25.5% PROCTER & GAMBLE (THAILAND)935,62244.2%7.8%41.0%3.2%3.8% BEIERSDORF (THAILAND) CO.,LTD.650,13536.7%4.8%34.7%3.8%19.8%0.1% NESTLE(THAI) LTD.592,72528.5%6.8%41.7%8.5%14.4%* COLGATE-PALMOLIVE(THAILAND)LTD506,79642.8%1.1%43.9%2.0%10.2% AJINOMOTO SALES CO.,(THAILAND)492,82822.5%11.8%31.1%10.1%23.6%0.9% TOYOTA MOTOR THAILAND CO.,LTD.481,29924.8%9.0%29.7%18.7%16.4%1.3% KAO COMMERCIAL (THAILAND) CO.,468,08426.9%8.6%39.5%10.1%14.8%0.1% OSOTSPA (TECK HENG YOO)466,65528.5%10.4%28.2%12.4%15.7%4.8% ADVANCE INFO SERVICE PCL.445,08517.2%6.9%37.1%5.4%32.5%1.0% PTT PUBLIC CO.,LTD.422,88818.8%13.9%17.0%27.1%13.7%9.6% L'OREAL (THAILAND) LTD.412,68225.5%4.3%35.7%11.7%22.8% JOHNSON&JOHNSON(THAILAND)LTD.412,43039.1%11.9%31.6%11.5%5.9% BOONRAWD BREWERY CO.,LTD.383,42720.7%20.4%26.3%11.1%16.6%5.0% TOTAL ACCESS COMMUNICATIONS343,48024.5%13.2%36.9%13.7%10.9%0.9% BEER THAI (1991) CO.,LTD.330,09015.6%25.0%14.8%13.9%22.2%8.6% LION (THAILAND) CO.,LTD.310,48821.9%15.5%19.7%12.7%30.2% TRI PETCH ISUZU SALES CO.,LTD.307,22726.3%17.2%15.3%21.1%20.0% A.P.HONDA CO.,LTD.228,25418.4%14.3%21.9%14.5%23.1%7.9% PEPSI-COLA (THAI) TRADING/SERM222,09625.1%7.6%36.6%15.4%15.3% Source: AGB Nielsen Media Research CD, Governmental and Infomercial spending are excluded.

10 10 STATION SHARE OF AUDIENCE 2005 - 2006 WHOLE KINGDOM : ALL AGED 4+ 06.00 - 24.00 POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000 Source: AGB Nielsen Media Research

11 11 AUDIENCE SIZE BY CHANNEL - WEEKDAY Source: AGB Nielsen Media Research

12 12 TV VIEWING PATTERN BY AGE GROUP - WEEKDAY Source: AGB Nielsen Media Research

13 13 AUDIENCE SIZE BY CHANNEL - WEEKEND Source: AGB Nielsen Media Research

14 14 TV VIEWING PATTERN BY AGE GROUP- WEEKEND Source: AGB Nielsen Media Research

15 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 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 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%-314-87%-18-28% Cost of Sales & Services77545%-275-26%-4-1% Selling & Admin. Expenses31318%0%2910% Total Operating Costs1,08863%-276-20%252% Operating Profit63737%28782%5910% Share of Associates' Results-11-1%-15-375%-18-257% 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 18 BEC WorldFirst Half 2006 Operating Results฿ Million % +/- YoY Advertising Income3,093179%71430% Copyright & Services1579%4034% Concerts & Shows1177%-553-83% Total Sales Revenues3,367195%2016% Operating Costs Cost of Services1,44284%473% Cost of Shows1137%-479-81% Cost of Sales & Services1,55590%-432-22% Selling & Admin. Expenses59635%10% Total Operating Costs2,151125%-431-17% 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 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)

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