RS: Rs Public Company Limited | Annual Report 2013

RS PUBLIC COMPANY LIMITED ANNUAL REPORT 2013 02 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Contents 1 Message from the Chairman and Chief Executive Officer……...... [002] 2 Management Team…………………………………………………………………[005] 3 Policy and Business Overview……………………………………………………..[016] 4 Business Descriptions……………………………………………………………..[018] 5 Risk Factors………………………………………………………………………..[040] 6 Property used in the business……………………………………………………..[044] 7 Legal disputes……………………………………………………………………..[047] 8 General information and other important information...... [049] 9 Securities and Shareholder Information……………………………………………[051] 10 Management Structure……………………………………………………………[054] 11 Corporate Governance…………………………………………………………….[070] 12 Responsibilities toward society……………………………………………………[085] 13 Internal Control and Risk Management……………………………………………[096] 14 Related Party Transactions………………………………………………………..[098] 15 Financial Highlight…………………………………………………………………[104] 16 Management Discussion and Analysis…………………………………………….[111] 17 Financial Statement………………………………………………………………..[124] MEDIA REVOLUTIONIST 01 01 Message from the Chairman and Chief Executive Officer 02 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Message from the Chairman and Chief Executive Officer

Mr. Surachai Chetchotisak $IBJSNBOǰBOEǰ$IJFGǰ&YFDVUJWFǰ0GųDFS MEDIA REVOLUTIONIST 03

Dear Shareholders, The 2013 was another extremely important year for operators of the television media industry in Thailand as the National Broadcasting Commission had stipulated the television licenses auction for the frequency band type, or licenses for operating normal television business or under the normal well-known name as the free TV. RS is the television business operator for the non-frequency band type or satellite television that already has experiences and readiness in every aspect whether on the personnel, production of contents on entertainment WBSJFUZǰBOEǰOPSNBMǰNBUUFSǰBTǰXFMMǰBTǰųOBODJBMǰDBQBCJMJUZǰ$BSFGVMǰTUVEJFTǰIBWFǰCFFOǰNBEFǰPOǰEFUBJMTǰBOEǰSFUVSOǰPOǰ investment on the license auction for television of the frequency band type so that business investment on 15 years duration for this license auction generates the best long and short term results to the Company’s stakeholders. 5IFǰ$PNQBOZǰIBEǰEFDJEFEǰUPǰQBSUJDJQBUFǰJOǰUIFǰMJDFOTFǰBVDUJPOǰPGǰUIFǰWBSJFUZǰHSPVQǰGPSǰTUBOEBSEǰEFųOJUJPOǰUZQFǰ by considering on cost of the license fee as well as the annual transmission cost, the possible access rate through terrestrial networks after covering most parts of the country, and the form of television reception via satellite to most households in the country. After considerations had been made on the mentioned factors, the Company, then, had auctioned on the license for television business operation of the frequency band type at the cost of #BIUǰ ǰ.JMMJPOǰ5IFǰ$PNQBOZǰXBTǰDPOųEFOUǰUIBUǰUIFǰQSJDFǰXBTǰBǰTVJUBCMFǰDPTUǰUIBUǰDPVMEǰHFOFSBUFǰQSPųUBCMFǰ CVTJOFTTǰPQFSBUJPOǰGSPNǰUIFǰųSTUǰZFBSǰCZǰDBQJUBMJ[JOHǰPOǰUIFǰTVDDFTTǰGSPNǰNBOBHJOHǰUIFǰTBUFMMJUFǰUFMFWJTJPOǰDIBOOFMǰ 8. Broadcasting will be ready for transmission on April 1, 2014 as per announcement from the test transmission from the National Broadcasting Commission. The Company anticipated that the upgrading of satellite television channel 8 to the general television business operator, or the free TV, that had nationwide access rate, would enable the increment on investment expansion capability on various contents to their full capacities, and also increase more competitive edge. Moreover, return on investment to stakeholders would increase in the long term.

Overall Thai economic situation in 2013 showed a rather good growth in the 1st quarter but decelerating sign started to show during the 2nd quarter due to decreasing export from slackening world economy and strengthening of the Baht. In the 3rd quarter, the economy still registered reduced growth due to weakening household spending, and reducing government and private sector’s spending. Economic growth came to a rapid halt during the last quarter GSPNǰQPMJUJDBMǰDPOŴJDUǰUIBUǰHFOFSBUFEǰTJODFǰMBUFǰJOǰ0DUPCFS ǰBOEǰUIFǰ#BOLǰPGǰ5IBJMBOEǰIBEǰGPSFDBTUFEǰUIFǰ5IBJǰPWFSBMMǰ economic growth to 3%.

The advertising industry unavoidably received such impact from overall weakening of the economy. Overall advertising expenses registered only 3% growth, while the advertising budgets of the original television operators had only 2% growth, however, advertising budgets of the satellite television operators’ group registered 23% growth. RS, as the satellite television operator in 2013, registered a high 83% growth due to strength of its contents which were continuously accepted very well from audiences and advertising buyers alike. Thus, the Company had opportunity to adjust its advertising rates for the Channel 8, and Sabaidee TV to 100% during early 2013, while the remaining 2 stations i.e., You Channel and Star Max received more recognition from their audiences and registered better audience rating gradually. Radio media still recorded continuous growth as one station playing international music had been added to the Company’s management during the end of the 1st quarter under the “COOL Celsius” brand in order to build on the success of the Thai music station “COOL Fahrenheit” which occupied number one popularity station for more than 10 years. 04 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Overall picture of our media business indicated 67% growth rate which showed a very satisfactory successful step forward into a media business operator from now on. On the management of business license of the La Liga football, the long and short term membership applications had been opened to all interested football fans to view live coverage of the Spanish La Liga football on special channel for the whole season. This included another alternative to consumers who preferred to purchase the new set top box, the opportunity to continuously view an important football league of the world commencing from last season by adding special channel, the “Sun Channel La Liga”, into the new set top box under the name “Sunbox”. Music business is still considered as an important business as it is the original source of contents and most of the $PNQBOZĴTǰFNQMPZFFTǰIBWFǰFYQFSJFODFTǰUISPVHIǰJNQPSUBOUǰNVTJDǰMBCFMǰDPNQBOJFTǰTVDIǰBTǰĶ:FTǰ.VTJDķ ǰĶ,BNJLB[Fķ ǰ “Garden”, and “R Siam” that cover various groups of listeners. Music business, we believe, is still important to the Company in a long term but the income generating’s patterns may have changed. The Company is always ready to experiment with the new business models all the time as it is ready from the last important adjustment a few years BHPǰ)FODF ǰUIFǰ$PNQBOZǰIBTǰBǰWFSZǰŴFYJCMFǰCVTJOFTTǰPQFSBUJPOǰXJUIǰNBYJNVNǰFGųDJFODZǰBTǰUIJTǰDBOǰCFǰTFFOǰGSPNǰ UIFǰDPOUJOVPVTMZǰIJHIǰHSPTTǰQSPųUǰSBUFǰGPSǰNBOZǰZFBST

On corporate social responsibility, RS still adhered to continuously participate in social activities together with its entertainment business operations. In 2013, RS had joined with many social projects including arrangement of some internal activities in which some projects could be mentioned as follow; Project “RS - Coordinate our Hearts to Help 'MPPEǰ7JDUJNTķǰUPǰIFMQǰŴPPEǰWJDUJNTǰJOǰNBOZǰBSFBTǰJOǰ$IPOCVSJ ǰ6CPOǰ3BUDIBUIBOJ ǰ1SBDIJOǰ#VSJ ǰBOEǰ1IJUTBOVMPLǰ provinces; "“Do For Dad” project (This card is for father), in order to pay respect to His Majesty the King and show love for fathers of the chronically ill children at the Chulalongkorn Hospital; “ Fostering the Elephant Family” project in conjunction with the Thai Society for the Prevention of Cruelty to Animals (TSPCA) by inviting people and general public to foster the young elephants, and taking care and help the growing young elephants to live in proper care without having to become stray elephants. Moreover, in 2013, “CSR Branding for Sustainability” policy was stipulated BOEǰJOUSPEVDFEǰUPǰBMMǰXPSLJOHǰVOJUTǰJOǰPSEFSǰUPǰBQQMZǰFGųDJFODZǰJOUPǰUIFJSǰCVTJOFTTǰPQFSBUJPOT ǰTIPXJOHǰSFTQPOTJCJMJUZǰ towards society, and for the Company’s business sustainability.

Application of the good corporate governance is always important to RS’s business operations. From the research results on the Corporate Governance of Thai Listed Companies 2013, the Company was ranked in the “Excellent” or the “Excellent CG Scoring” group. The Company reviews the good corporate governance policy and business ethic annually, and all Directors, Executives, and employees consistently comply with the policy. Not only being successful GPSǰCVTJOFTTǰPQFSBUJPOT ǰXFǰBSFǰEFUFSNJOFEǰJOUPǰCFDPNJOHǰPSHBOJ[BUJPOǰUIBUǰCVJMETǰTVTUBJOBCMFǰTPDJFUZ ǰBOEǰGPSNTǰUIFǰ CBMBODFǰQMBUGPSNǰDPWFSJOHǰUIFǰFDPOPNJD ǰTPDJBMǰBOEǰFOWJSPONFOU ǰJODMVEJOHǰHFOFSBUFTǰCFOFųUTǰUPǰTIBSFIPMEFSTǰJOǰUIFǰ long term as well. "DIJFWFNFOUǰXJUIJOǰUIFǰ34ǰPSHBOJ[BUJPOǰSFTVMUFEǰGSPNǰXPSLJOHǰUPHFUIFSǰBTǰUFBNXPSLǰVOEFSǰDMFBSǰWJTJPOǰBOEǰUBSHFUǰ0Oǰ behalf of the Company’s Board of Directors, we would like to thank shareholders, customers, government agencies, and sponsors, and most important of all, our employees and artists who dedicated their bodies and minds by VOJUJOHǰJOǰNPWJOHǰPVSǰDPNQBOZǰGPSXBSEǰTUSPOHMZǰBOEǰųSNMZǰ5IFǰ$PNQBOZǰXPVMEǰOPUǰCFǰBCMFǰUPǰPWFSDPNFǰPCTUBDMFTǰ and crisis many times without physical and moral supports from all our allies in every aspect. The Company also SFBMJ[FEǰUIFǰJNQPSUBOUǰPGǰUFBNXPSL ǰBOEǰUIFǰPGGFSJOHǰPGǰHFOFSPTJUZǰUPǰFBDIǰPUIFS ǰBOEǰXPVMEǰMJLFǰUPǰTFFǰUIFǰTIBSJOHǰ of kindness among each other as well as showing compassion to the underprivileged people in society. These would be in coordination with our corporate strategy in 2013 as the “Media Revolutionist” that presented variety of quality entertainment in a different form and always with a sense of social responsibility. MEDIA REVOLUTIONIST 05 02 Management Team 06 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

s. Pornpan Tech Mr aru ng ch . Darm Nan ai Mr a ku l hai Che . Surac tchot Mr isak

punt Pesla idh ais an D r. Mr. Sora M t Va ni ch v a rasatkarukarn ra ak P k is ij tth Su r. M

Ge ner m al iro Pa h ir b o j a P n a a n

h i c c

D a

a i

i h

r M

A ss oc ia te

P r o

f e

n g k u l MEDIA REVOLUTIONIST 07

Mr. Surachai Chetchotisak Age : 51 Years Experience : Position : $IBJSNBO ǰ$IJFGǰ&YFDVUJWFǰ0GųDFS 2012 - present Chairman Shareholding : 32.394 % RS Public Company Limited 2003 - present Chairman of the Executive Committe Education : RS Public Company Limited Honorary Docterate Degree of Marketing, ǰǰQSFTFOUǰǰǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰ ǰǰǰǰǰǰ$IBOESBLBTFNǰ3BKBCIBUǰ6OJWFSTJUZ RS Public Company Limited Bachelor’s degree of Political Sciences, ǰǰǰǰǰǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰ Directorships in other companies that are not owned Thai Institute of Directors Training : by the RS Public Company Limited : Director Accreditation Program (DAP) Year 2003 Director of Chetchotisak Co.,Ltd. Director of SS2C Co.,Ltd. Director of Tiger Fun Co.,Ltd. Director of Primo Posto Co.,Ltd. 08 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Mrs. Pornpan Techarungchaikul Age : 43 Years Experience : Position : Director, Secretary to the Board of Directors 2008 - present Secretary to the Board of Directors and Company Secretary and Company Secretary ǰ ǰǰǰ$IJFGǰ0QFSBUJOHǰ0GųDFS RS Public Company Limited 2007 - present $IJFGǰ0QFSBUJOHǰ0GųDFS Shareholding : None RS Public Company Limited Education : 2004 - present Director Master degree (MBA) from Sasin Graduate institute RS Public Company Limited ǰǰǰǰǰǰPGǰ#VTJOFTTǰ"ENJOJTUSBUJPOǰPGǰ$IVMBMPOHLPSOǰ6OJWFSTJUZ 2003 - 2007 Executive Vice President ǰǰǰǰǰ#BDIFMPSǰEFHSFFǰPGǰ4UBUJTUJDTǰ$IVMBMPOHLPSOǰ6OJWFSTJUZǰǰǰǰǰǰǰ RS Public Company Limited Thai Institute of Directors Training : 2001 - March 2003 Assistant Managing Director ǰǰǰǰǰ%JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Golden Land Property Development Director Accreditation Program (DAP) Year 2004 Public Company Limited 1999 - July 2001 Assistant Vice President SG Securities Co., Ltd. Directorships in other companies that are not owned by the RS Public Company Limited : None MEDIA REVOLUTIONIST 09

Mr. Darm Nana Age : 44 Years Experience : Position :ǰ%JSFDUPS ǰ$IJFGǰ'JOBODJBMǰ0GųDFS 2007 - Present Director RS Public Company Limited Shareholding : None ǰǰ1SFTFOUǰǰǰ$IJFGǰ'JOBODJBMǰ0GųDFS Education : RS Public Company Limited Master of Business Administration (MBA), 2002 - 2007 Senior Vice President 6OJWFSTJUZǰPGǰ/PUSFǰ%BNF ǰ*OEJBOB ǰ64"ǰǰ Corporate Banking, HSBC Thailand Bachelor degree of Arts in Economics (BA Econ), Directorships in other companies that are not 5IBNNBTBUǰ6OJWFSTJUZǰ owned by the RS Public Company Limited : None Thai Institute of Directors Training : %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Director Accreditation Program (DAP) Year 2008 10 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Mr. Danaisidh Peslapunt Age : 58 Years Experience : Position : Director, 2007 - present Director ǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰ&YFDVUJWFǰ7JDFǰ1SFTJEFOUǰǰ$FOUSBMǰ-FHBMǰ0GųDF RS Public Company Limited ǰǰQSFTFOUǰǰǰǰ&YFDVUJWFǰ7JDFǰ1SFTJEFOUǰǰ$FOUSBMǰ-FHBMǰ0GųDF Shareholding : None RS Public Company Limited Education : 1997 - 2007 Law Consultant Thai Barrister at Law from The Institute RS Public Company Limited of Legal Education Thai Bar Association Directorships in other companies that are not ǰǰǰǰǰǰ#BDIFMPSǰPGǰ-BXǰGSPNǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰ owned by the RS Public Company Limited : None ǰǰǰǰǰǰ$FSUJųDBUFǰPGǰ*OUFMMFDUVBMǰ1SPQFSUZǰBOEǰ*OUFSOBUJPOBMǰ Trade from The Institute of Legal Education Thai Bar Association Thai Institute of Directors Training : %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Director Accreditation Program (DAP) Year 2008 Financial Statements for Directors (FSD) Year 2008 MEDIA REVOLUTIONIST 11

Mr. Sutthisak Prasatkarukarn Age : 48 Years Experience : Position : Director, Managing Director, 2012 - present Director Thai Copyright Collection Co.,Ltd. RS Public Company Limited 2003 - present Managing Director Shareholding : None Thai Copyright Collection Company Limited Education : Directorships in other companies that are not owned by ǰǰǰǰǰǰ.BTUFSǰPGǰ-BXTǰ --. ǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰ the RS Public Company Limited : None ǰǰǰǰǰǰ#BDIFMPSǰEFHSFFǰPGǰ-BX ǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰ ǰǰǰǰǰǰ$FSUJųDBUFǰJOǰ#VTJOFTTǰ-BX ǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰ Thai Institute of Directors Training : ǰǰǰǰǰǰ%JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ 12 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Mr. Sorat Vanichvarakij Age : 40 Years Experience : 2012 - present Director Position : Director RS Public Company Limited Shareholding : 17.114 % ǰǰQSFTFOUǰǰǰ$IJFGǰ&YFDVUJWFǰ0GųDFS Education : YT Group Company Limited Master of Business Administration (MBA) ǰǰQSFTFOUǰǰǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰǰ Asian Institute of Technology (AIT) VRK Engineering Company Limited Bachelor degree of Marketing ǰǰQSFTFOUǰǰǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰǰǰǰǰ Business Administration Pan Asia Industrial Company Limited ǰǰǰǰǰǰ"TTVNQUJPOǰ6OJWFSTJUZǰPGǰ5IBJMBOEǰ "#"$ Directorships in other companies that are not owned Thai Institute of Directors Training : by the RS Public Company Limited : ǰǰǰǰǰ%JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ YT Group Company Limited VRK Engineering Company Limited Pan Asia Industrial Company Limited MEDIA REVOLUTIONIST 13

Mr. Phisit Dachanabhirom Experience : Age : 72 Years 2007 - present Independent Director and Position : Independent Director and Audit Committee Chairman Audit Committee Chairman RS Public Company Limited Shareholding : None 2013 - present Director Don Muang Tollway Public Company Limited Education : 2003 - present Director and Audit Committee Chairman Bachelor Degree of Accounting, Jaymart Public Company Limited ǰǰǰǰǰǰ5IBNNBTBUǰ6OJWFSTJUZǰ 2002 - present Director and Advisor, Bachelor Degree of Commerce, Phuket International ǰǰǰǰǰǰ5IBNNBTBUǰ6OJWFSTJUZǰǰ Hospital Company Limited 2001 - present Executive Chairman ǰǰǰǰǰǰ$FSUJųFEǰ1VCMJDǰ"DDPVOUǰ/P Professional Alliance Group Limited Thai Institute of Directors Training : Directorships in other companies that are not owned %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ by the RS Public Company Limited : Audit Committee Program (ACP) Year 2005 Don Muang Tollway Public Company Limited Director Accreditation Program (DAP) Year 2004 Jaymart Public Company Limited Phuket International Hospital Company Limited Professional Alliance Group Limited Polipharm Company Limited 14 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

General Pairoj Panichsamai Age : 67 Years Experience : 2007 - present Independent Director and Audit Committee Position : Independent Director and Audit Committee RS Public Company Limited Shareholding : None 2006 Deputy Supreme Commander, Education : Supreme Command Headquarters (Army) Master degree of Social Development 2005 Chairman of the RTA Advisory Board National Institute of Development Administration (NIDA) 2000 Commanding General Army Weapons ǰǰǰǰ3PZBMǰ.JMJUBSZǰ"DBEFNZǰ4BOEIVSTUǰ6, Production Control Center Bachelor of Law, School of law LL.B., Directorships in other companies that are not owned ǰǰǰǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰǰǰ by the RS Public Company Limited : None Thai Institute of Directors Training : %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Audit Committee Program (ACP) Year 2007 Director Accreditation Program (DAP) Year 2007 Finance for Non-Finance Director (FN) Year 2007 MEDIA REVOLUTIONIST 15

Associate Professor Witaya Danthamrongkul Age : 51 Years Experience : Position : Independent Director and Audit Committee 2007 - present Independent Director and Audit Committee Shareholding : None RS Public Company Limited Present Associate Professor and Lecturer, Education : Department of Human Resource and Master of Business Administration (MBA.) ǰ ǰǰǰǰǰǰǰǰǰǰ0SHBOJ[BUJPOǰ.BOBHFNFOU ǰ'BDVMUZǰPGǰ ǰǰǰǰǰǰ0SFHPOǰ4UBUFǰ6OJWFSTJUZ ǰ64" ǰ ǰǰǰǰǰǰǰǰǰǰ$PNNFSDFǰBOEǰ"DDPVOUBODZ ǰ5IBNNBTBUǰ6OJWFSTJUZ Bachelor degree of Economic (1st Honor) 2009 - present Independent Director and Audit Committee Chairman Prinsiri Public Company Limited 5IBNNBTBUǰ6OJWFSTJUZ ǰ5IBJMBOEǰ 2006 - 2007 Director, Journal of Business Administration Thai Institute of Directors Training : Faculty of Commerce and Accountancy %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ ǰ ǰǰǰǰǰǰǰǰǰǰǰ5IBNNBTBUǰ6OJWFSTJUZ 2000 - 2001 Training Director Director Accreditation Program (DAP) Year 2007 Institute of Small and Medium Enterprises Development (ISMED) Directorships in other companies that are not owned by the RS Public Company Limited : Independent Director and Audit Committee Chairman, Prinsiri Public Company Limited 16 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 03 Policy and Business Overview MEDIA REVOLUTIONIST 17

Policy and Business Overview

RS starting business from the jukebox and the tape record under the “Rose” brand by Mr.Kriengkrai chetchotisak and Mr.Surachai Chetchotisak in 1976. Before fully established with an investment of 50,000 baht behalf “Rose Sound”, which later changed its name to “RS Promotion 1992 Co.,Ltd” in 1992, including the relocation of a building, from 6SVQPOHǰ3PBEǰUPǰ$IFUDIPUJTBLǰ#VJMEJOHǰ4PJǰ-BEQSBPǰǰXJUIǰBOǰJOWFTUNFOUǰPGǰǰNJMMJPOǰCBIUǰFYQBOTJPOǰPGǰUIFǰ music business as a fully integrated entertainment company. In addition to releasing the album, which is the core business, the company also entered into other entertainment business. Such as the Radio Program, TV shows, TV series and movies. In 2003, RS listed on the Stock Exchange of Thailand and was renamed to “RS Public Company Limited” operating 3 major business such as Music Business, Show Business and Media Business until now. The company’s operations are grouped as follows:

RS Public Company Limited

Music Showbiz Media

RS Public Company RS Public Company Television Radio Publishing Moderntrade Limited Limited Thai Copyright K. Master Co.,Ltd. RS Public RS Public Idea Power RS In-store Collection Co.,Ltd. Company Limited Company Limited Co., Ltd.*** Media Co., Ltd. * Poema Co.,Ltd YAAK Co.,Ltd. COOLISM Co.,Ltd.

Blu Fairy Co.,Ltd. K.Master Co.,Ltd Temporarily Suspended. - RS Film & Distribution Co., Ltd. Nagasia Co.,Ltd. - Avant Co., Ltd. RS International Broadcasting & - R.S. Sportmaster Co., Ltd. Sports Management Co.,Ltd. ** ǰ#BOHLPLǰ0SHBOJ[FSǰ$P ǰ-UE Aladdin House Co.,Ltd. - R.S. Television Co., Ltd. - R Siam Co., Ltd. - S-One Sports Co., Ltd. Dee Media & Production Co., Ltd * 65% shares held by RS Public Company Limited ** 83.33% shares held by RS Public Company Limited *** 25% shares held by Poema Co., Ltd. As at December 31, 2013

Vision The revolutionist that creates entertainment products with social responsibility Mission To offer quality entertainment products that meet our customer’s needs through the force of excellent human resource that is poised to respond to any changes and always explore new opportunities by adhering to the principlesp of modern management and technology. 18 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 04 Business Descriptions MEDIA REVOLUTIONIST 19

Business Descriptions

At present, RS Group has 3 main core businesses which are the Music Business, Show Business and Media Business.

Revenue Structure

2011 2012 2013 Type of Revenue share in total share in total share in total Amount revenue Amount revenue Amount revenue (Million Baht) (%) (Million Baht) (%) (Million Baht) (%) Music Business 934.5 34% 883.2 31% 777.2 22% Show Business 814.1 29% 718.8 26% 692.6 20% Media Business 941.9 34% 1,193.0 42% 1,986.3 57% Revenue from Other Business 50.8 4% 17.4 1% 5.5 1%

Total Revenues 2,765.0 100% 2,812.4 100% 3,461.5 100%

4PVSDFǰǰ5IFǰ$PNQBOZĴTǰ.BOBHFNFOUǰPCUBJOFEǰEBUBǰGSPNǰųOBODJBMǰTUBUFNFOUTǰJOǰ ǰ ǰBOEǰSFBSSBOHFEǰUIFNǰBTǰQFSǰUIFǰ ǰǰǰǰǰǰǰǰǰǰǰǰOFXMZǰEFųOFEǰSFWFOVFǰTUSVDUVSFĴTǰCVTJOFTTǰHSPVQT

Music Business RS runs the music business in a complete cycle with all-inclusive operations from tryouts, production, promotion, marketing and media strategic planning, artist and music content management through both digital and physical distribution with the following details:

1) RS Group employs a fully integrated business model managing all types of related business. As a company associated with a number of artists, RS Group has produced a variety of music with continuous releases onto the market. The targeted market and music genre is presented to the music committee and each music label works POǰFBDIǰBMCVNǰJOEFQFOEFOUMZǰVOUJMǰUIFǰNVTJDǰBMCVNǰJTǰųOJTIFEǰ4VCTFRVFOUMZ ǰUIFǰNVTJDǰQSPEVDUJPOǰQSPDFTTǰ will be independently undertaken by the teams in each music label. The public relations plan and promotion Products and Services Descriptions strategy will also be created by those teams to be combined with the plans of Media Management Division and Distribution Division. Finally, the music marketing unit will lay-out the promotion strategy, conduct the public relation campaign and coordinate with the distributor to ensure the alignment of product’s quality and market’s popularity. 20 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

2) It is RS Group’s policy to generate products in an appropriate quantity and of good quality. As a result, each album’s investment yields a satisfactory outcome.

ǰǰǰ6UJMJ[BUJPOǰCFOFųUTǰUISPVHIǰBMMǰNFEJBǰDIBOOFMTǰGPSǰCPUIǰ'SFFǰ57ǰBOEǰ4BUFMMJUFǰ57 ǰSBEJP ǰQSJOUFEǰNFEJB ǰJOUFSOFUǰ NFEJBǰUISPVHIǰUIFǰ$PNQBOZǰBOEǰJUTǰBGųMJBUFEǰDPNQBOZĴTǰXFCTJUFTǰBOEǰTPDJBMǰNFEJBǰDIBOOFMTǰUPǰGBDJMJUBUFǰFGųDJFODZǰ PGǰUIFǰQVCMJDǰSFMBUJPOTǰQSPHSBNT ǰBOEǰVUJMJ[FǰBMMǰNFEJBǰGPSǰNBYJNVNǰFGųDJFODZ

ǰǰ&GųDJFOUǰEJTUSJCVUJPOǰUSBOTGFSTǰQSPEVDUTǰUPǰFOEǰDVTUPNFSTǰUIPSPVHIMZǰJOǰCPUIǰGPSNTǰPGǰEJHJUBMǰBOEǰQIZTJDBMǰ contents. Set up the management and follow up system for closely monitor the distribution channels.

ǰǰǰ&GųDJFOUǰBOEǰTZTUFNBUJDǰNVTJDǰDPQZSJHIUǰNBOBHFNFOUǰDSFBUFTǰBEEFEǰSFWFOVFǰGPSǰUIFǰCVTJOFTTǰ

6) The policy in opening opportunities to new group of artists, song writers, and new creative channel of songs in order to develop and improve the quality of RS Group’s songs to be updated and covering the target groups at all time.

Music business acquires most of its revenue from the following 3 sources:

1) Revenue from music products through Digital Content in the forms of Download, Ringtone, Ring-Back Tone, downloading of full song through various channels such as iTunes, the www.rsonlinemusic.com website, or Wireless "QQMJDBUJPOǰ1SPUPDPMǰ ǰBOEǰNVTJDǰMJTUFOJOHǰJOǰUIFǰGPSNǰPGǰPOǰMJOFǰTUSFBNJOHǰUISPVHIǰĶ%FF[FSķǰTZTUFNǰ

2) Income from the sale of music products in forms of CD, MP3 in the forms of new and old hit singles in various formats, including VCDs and DVDs recording the concerts of Thai modern or country music artists through their new single albums, and/or their hits collection versions and so on.

ǰ3FWFOVFǰGSPNǰDPQZSJHIUǰDPMMFDUJPOǰUISPVHIǰ34ǰBGųMJBUFEǰDPNQBOZǰDBMMFEǰĶ5IBJǰ$PQZSJHIUǰ$PMMFDUJPOǰ$P ǰ-UEķǰPSǰ “TCC” which collects all commercially viable copyright fees.

"GųMJBUFEǰ"SUJTUǰǰ4JOHFS RS Group has both String Music singers and Country Music singers. Each music style has both solo singers and groups whom have different styles. RS artists and singers include: MEDIA REVOLUTIONIST 21

String Music Singer

3.2.1

Four Mod 22 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Laolom, Jeasmine, Karamail MEDIA REVOLUTIONIST 23

New Folder

Ekk Surachate 24 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Neko Jump

Timethai MEDIA REVOLUTIONIST 25

White Vanilla

ZEE 26 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Country Music Singer

Kratae R-siam

Kung Suthiraj

Jintara Poonlarp MEDIA REVOLUTIONIST 27

Bowvee

Baitoey R-siam 28 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Marketing and Competition At present, major factor that alters the consumers’ music listening behavior has been the use of internet and widely increasing usage of the smartphone. Hence, this results in more consumers listening to music through various websites and the smartphone’s applications. Consumers, then, purchase less on the physical products but UFOEǰUPǰCFǰNPSFǰJOUFSFTUFEǰJOǰNBJOMZǰQVSDIBTJOHǰUISPVHIǰUIFǰEJHJUBMǰDIBOOFMTǰ)FODF ǰUIFǰ$PNQBOZǰFNQIBTJ[FTǰ more on contents with more varieties in order to have more channels in reaching consumers without necessarily having the physical product.

Moreover, problem on music copyright’s violation through the online system or the digital system is widely spreading due to the technology advancement. This enables consumers to easily, and rapidly reach many illegal EPXOMPBEJOHǰNVTJDǰXFCTJUFTǰ"TǰJOTQFDUJPOǰBOEǰTVQQSFTTJPOǰBSFǰRVJUFǰEJGųDVMU ǰNBOZǰTNBMMǰNVTJDǰCVTJOFTTǰPQFSBUPSTǰ PSǰTNBMMǰNVTJDǰMBCFMĴTǰDPNQBOJFTǰIBWFǰEJGųDVMUJFTǰDPOEVDUJOHǰUIFJSǰCVTJOFTT ǰBOEǰTPNFUJNFǰIBWFǰUPǰDMPTFǰEPXOǰUIFJSǰ business. However, RS has always adjusting itself to constantly retain the music business’s revenue.

Show Business Show Business income derives from 2 parts i.e. 1) the PSHBOJ[BUJPOǰPGǰDPODFSUTǰBOEǰFWFOUTǰGPSǰQVCMJDǰBOEǰQSJWBUFǰ sectors and 2) artist management.

The organization of concerts and events for public and private sectors

Shows and events are another business that is rapidly growing in Thailand because products, services and advertising agencies has turned to allocate more budget for below-the-line activities over the past years as a result of a rising cost of airtime for TV commercials compounded by a larger number of competitors selling products in the same category.

34ǰJTǰTQFDJBMJ[FEǰJOǰPSHBOJ[JOHǰDPODFSUTǰBOEǰFWFOUTǰUPǰGVMųMMǰNBSLFUJOHǰQMBOTǰPGǰBHFODJFT ǰGPSǰUIFǰQSPNPUJPOǰPGǰ products and services, that have turned to invest in non-media or below-the-line activities in forms of shows and FWFOUT ǰBOEǰBǰTFSJFTǰPGǰQMBOTǰGPSǰUIFǰPSHBOJ[BUJPOǰPGǰFOUFSUBJONFOUǰBDUJWJUJFTǰUIBUǰDBOǰPCUBJOǰMPOHUFSNǰQPTJUJWFǰ effects on business will be presented.

Marketing and Competition 5IFǰCVTJOFTTǰPGǰPSHBOJ[JOHǰDPODFSUTǰBOEǰFWFOUTǰin Thailand can be divided into three main groups as follows: ǰ1SFTFOUBUJPOǰBOEǰFWFOUǰPSHBOJ[FSTǰQSPWJEJOHǰTFSWJDFTǰPOǰUIFǰPSHBOJ[BUJPOǰPGǰHFOFSBMǰFWFOUTǰUPǰQSPNPUFǰQSPEVDUTǰ and services for customers. 2. Local event promoters providing services on the PSHBOJ[BUJPOǰBOEǰNBSLFUJOHǰPGǰTUBHFǰQFSGPSNBODFT ǰTIPXTǰBOEǰ concerts with their own investments and/or in cooperation with other local companies. 3. International event promoters providing services on UIFǰPSHBOJ[BUJPOǰPGǰTIPXTǰBOEǰDPODFSUTǰBTǰXFMMǰBTǰPOǰUIFǰ formulation of marketing plans thereof, with their own investments and/or in cooperation with other companies, by selecting live performance products for marketing in the country. MEDIA REVOLUTIONIST 29

5IFǰDPNQFUJUJPOǰGPSǰUIFǰPSHBOJ[BUJPOǰPGǰDPODFSUTǰBOEǰFWFOUTǰJOǰ5IBJMBOEǰJTǰSBUIFSǰIJHIǰCFDBVTFǰUIFSFǰJTǰBǰMBSHFǰ number of enterprises at all scales, whether small, medium or large. However, on the plus side, this business has a high prospect because most marketing plans for product promotion set aside more budgets every year for below-the-line activities.

#FJOHǰBǰMBSHFTDBMFǰFOUFSUBJONFOUǰDPNQBOZǰHJWFTǰ34ǰBOǰBEWBOUBHFǰPWFSǰPUIFSTǰJOǰUIFǰPSHBOJ[BUJPOǰPGǰDPODFSUTǰ and events, that is because we have lots of artists under our care and we run integrated media business of all kinds TVDIǰBTǰ57 ǰSBEJPǰBOEǰPUIFSǰNFEJBǰDIBOOFMǰǰ5IFTFǰRVBMJUJFTǰDBOǰHJWFǰBTTVSBODFǰUIBUǰDPODFSUTǰBOEǰFWFOUTǰPSHBOJ[FEǰ CZǰUIFǰ$PNQBOZǰDBOǰGVMųMMǰDVTUPNFSǰOFFET

Artist Management RS’s long-time engagement in the business of integrated entertainment results in loads of artists and actors/ actresses under the care of the Company. These personnel are valuable assets who create value for the Company BOEǰCFǰBǰSFQSFTFOUBUJWFǰPGǰUIFǰ$PNQBOZǰJOǰKPJOJOHǰBDUJWJUJFTǰXJUIǰPUIFSǰPSHBOJ[BUJPOT ǰBOEǰUBLJOHǰKPCTǰUPǰBQQFBSǰJOǰ public events after their albums are released and promoted.

Artist management is an arrangement of all affairs to add value to artists, create jobs to boost income for BSUJTUTǰJOǰBEEJUJPOǰUPǰUIFǰMBVODIǰPGǰNVTJDǰXPSLǰPSǰQFSGPSNBODFTǰBTǰVTVBMǰJFǰPSHBOJ[BUJPOǰPGǰDPODFSUTǰJOTJEFǰBOEǰ outside the country, appearance in public events for singing, fashion show performance, interview, sports playing, and so on, stage show performance in a fenced area with the sale of admission tickets, made-to-order production in accordance with individual customer requirements, and presentation show.

Marketing and Competition 5IFǰ$PNQBOZǰFNQMPZTǰCPUIǰNBTTǰDVTUPNJ[BUJPOǰTUSBUFHJFTǰBOEǰ$VTUPNJ[BUJPOǰ4USBUFHZǰBTǰBǰNBKPSǰQPMJDZǰ EFQFOEJOHǰPOǰFBDIǰDBUFHPSZǰPGǰQSPEVDUǰPSǰTFSWJDF ǰCZǰFNQIBTJ[JOHǰUIFǰJNQPSUBODFǰPGǰEJSFDUǰDVTUPNFSTǰBTǰUIFǰNBJOǰ focus but never forgets to take care of customers in the group of advertising agencies. With regard to the technique of work presentation, the Company aims to make customers aware that any work presented by the Company is a NBSLFUJOHǰUPPMǰUPǰIFMQǰJOEJWJEVBMǰDVTUPNFSTǰBDIJFWFǰTVDDFTTǰJOǰGVMųMMJOHǰUIFJSǰQSFEFUFSNJOFEǰNBSLFUJOHǰPCKFDUJWFTǰ by building on the principle of entertainment marketing to approach consumers. The Company reformats the management of performing artists by allowing artists to take jobs by themselves BUǰUIFǰTUBOEBSEǰSFNVOFSBUJPOǰSBUFǰųYFEǰCZǰUIFǰ$PNQBOZǰBOEǰUIPTFǰBSUJTUTǰIBWFǰUPǰEFEVDUǰBOEǰTIBSFǰBǰQBSUǰPGǰ SFWFOVFT ǰBUǰBǰTQFDJųFEǰSBUF ǰUPǰUIFǰ$PNQBOZǰǰǰ5IJTǰOFXǰGPSNBUǰIFMQTǰJODSFBTFǰKPCTǰBOEǰCPPTUTǰJODPNFǰGPSǰBSUJTUTǰ BOEǰDPOUSJCVUFTǰUPǰHSFBUFSǰŴFYJCJMJUZǰPGǰBSUJTUǰNBOBHFNFOU Media Business RS media business consists of 2 major media i.e. TV, and Radio

30 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

TV Media Business 34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰPQFSBUFTǰǰTBUFMMJUFǰUFMFWJTJPOǰDIBOOFMTǰJFǰ4BCBJEFFǰ57 ǰ:06ǰ$IBOOFM ǰ$IBOOFMǰ ǰ Channel 2 Star Max, and Sun Channel La Liga which have different concepts and target groups as follow:

Channel 8 is operated under the concept of Free TV with 24 hours varieties which presents its works to serve demands for all age and gender groups of audiences by producing and creating all forms of entertainment varieties. The laid out concept is similar to other free television channels which consists of variety of programs with its TUSFOHUIǰEVSJOHǰUIFǰTVQFSǰQSJNFǰUJNFǰQFSJPEǰGPSǰOFXǰUFMFWJTJPOǰESBNBǰXJUIǰJUTǰųSTUǰSVOǰ*Oǰ ǰ$IBOOFMǰǰIBTǰǰ OFXǰųSTUǰSVOǰESBNBTǰJFǰĶ,Bǰ,BQǰ)POHķ ǰĶ/BOHǰ.BSOķ ǰĶ,IBPǰ/PLǰ/Bķ ǰĶ7JWBǰ1Bǰ$IBǰ5FBLķǰBOEǰĶ1PPǰ$IBOBǰ4JCǰ Tis”. Moreover, there are many programs in various varieties such as the news program “ Kuikhao Chong 8”, and Kuikhao Yarmyen”, the entertainment programs “Bunthoeng 108”, the talk-show program “Pakpong”, the reality show program “Saengsawan Pichitfun”, the comedy, game-show and various concerts program including many GPSFJHOǰBOEǰEPNFTUJDǰųMNTǰUIBUǰBSFǰCFJOHǰDJSDVMBUFEǰJOǰǰIPVSǰCSPBEDBTUJOHǰ/FXǰESBNBTǰBOEǰUIFTFǰQSPHSBNTǰ have generated interesting trends among audiences and advertising agencies within a very short time which always SFŴFDUTǰ$IBOOFMǰĴTǰSBUJOHǰBTǰMFBEFSǰJOǰUIFǰFOUFSUBJONFOUǰWBSJFUZǰHSPVQǰGSPNǰ/JFMTFOǰ.FEJBǰ3FTFBSDI

Sabaidee TV channel focuses on the target group with appreciation of Thai songs not only limited to country music but also included songs for life, hit songs in the past, rare-to-hear old songs, string music, including underground music market where a music maker is given an opportunity to promote their work, under the slogan “various thai style music happy watching for the whole family. The strengths of Sabaidee TV channel of which its contents are QSPEVDFEǰBOEǰNBOBHFEǰVOEFSǰ3ǰ4JBNǰSFDPSEǰMBCFMǰJTǰDBQJUBMJ[FEǰPOǰUPǰQSFTFOUǰBǰXJEFǰWBSJFUZǰPGǰQSPHSBNT ǰCPUIǰJOǰ EFQUIǰBOEǰJOǰXJEUI ǰCZǰESBXJOHǰBOEǰVUJMJ[JOHǰUIFǰGVMMǰQPUFOUJBMǰPGǰBSUJTUTǰJOǰPVSǰDBSFǰBMPOHǰXJUIǰUIFǰTFMFDUJPOǰPGǰBOǰ emcee with unique identity, well remembered and liked by people of many different groups. All of the aforesaid characteristics make Sabaidee TV a channel of pleasure people can watch all day where people can communicate all the time via SMS which will be shown on TV screen.

:06ǰ$IBOOFM ǰUIFǰDIBOOFMǰXJUIǰQSPHSBNǰDPODFQUǰPGǰĶ5FMFWJTJPOǰGPSǰ.VTJDǰ-PWFSTķǰXIJDIǰDPOTJTUTǰPGǰWBSJPVTǰ programs such as live programs of variety favors and variety programs that are interesting to follow. This is to serve audiences and listeners of all ages and groups who love listening to music. Music videos or artist pictures in concerts are to be presented in various arrangements, and variety of entertainment programs to be shown in various formats. Creative materials are inserted to establish popularity trend to target group, and this is also another channel in recruiting new artists as well. MEDIA REVOLUTIONIST 31

ǰ $IBOOFMǰǰ4UBSǰ.BYǰJTǰUIFǰųSTUǰDPNQMFUFǰQIFOPNFOBMǰTUBSǰWBSJFUZǰJOǰ5IBJMBOEǰ5IJTǰJTǰUIFǰPOMZǰTUBUJPOǰUIBUǰ gathers top variety shows from artists, actors, celebrities, and leading local and foreign artists in full. Additionally, popular contents with top quality have been arranged to be broadcasted 24 hours in order to serve the target group.

Sun Channel La Liga is a new channel under the “Extreme Entertainment Variety” concept that consists of sport, news, information, and entertainment programs. Main target group consists of people in their early working MJWFT ǰBOEǰUIFǰBEVMUǰHSPVQǰXIPǰMPWFǰTQPSUǰ5IFǰOFXǰDIBOOFMǰTUJMMǰFNQIBTJ[FTǰPOǰMJGFǰCSPBEDBTUJOHǰPGǰUIFǰ-Bǰ-JHBǰ Spanish football in order to serve the audience group who love football which is the strong point of RS in this sector, and to expand for more coverage in this audience base group as well. The “Sun Channel La Liga” contains variety of programs such as “Inside La Liga”, Sun Sport”, La Liga World”, and “La Liga Show programs, etc. Moreover, add more variety program, “Arthit Lawan Tunkhao”, by using the professional news announcers such as Chaiwat Anutrakul, Akarapon Thongtaradol, Sasiwan Lertwiriyaprapa, and including many variety programs in order to cover more audiences.

Marketing and Competition Advertising on satellite TV spends much less money than on free TV; however, it can reach more target groups in various regions; especially, it provides an alternative to small and medium enterprises with small advertising budgets. The Company is capable of formulating a plan for the use of advertising space to meet customer requirements. In 2013, the advertising market shows an increasing growth of 10% comparing to 2012, with market value of Baht 129,880 million while the television media still registers the highest advertising value at 57% of total market value (source: Kasikorn Research Center). Additionally, in 2013, the penetration level of satellite television coverage has reached 64% of the 22 Million households with increasing trend in future, thus, creating more opportunity for expansion in future. Currently, there are many customers expressing interest in buying airtime both directly and through advertising agencies.

The Company sees that the diversity of programs via cable and satellite TV channels will make them become alternative media for products and services required to communicate message/information to customers in JOEJWJEVBMǰOJDIFǰNBSLFUTǰUPǰNFFUǰUIFJSǰTQFDJųDǰEFNBOET ǰMJGFTUZMFTǰPSǰQSFGFSFODFTǰPSǰTBUJTGZǰWJFXFSTǰJOǰFBDIǰTQFDJųDǰ region. 32 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Marketing 1) Product Branding and Program Positioning The Company clearly set the market position of the business in each type of program. The communication of BOǰJNBHFǰPGǰUIFǰ$PNQBOZǰBOEǰUIFǰEFTJHOǰPGǰQSPHSBNTǰBSFǰBJNFEǰBUǰSFTQPOEJOHǰUPǰTQFDJųDǰOFFETǰPGǰJOEJWJEVBMǰ target groups, by taking into consideration the pattern of behaviors of viewers in each group and hot trends which correspond to the strategies of RS Group of companies possessing strength and high competitiveness in the market.

ǰ$BQJUBMJ[BUJPOǰPOǰUIFǰDPNQFUJUJWFǰTUSFOHUIǰPGǰ34ǰ(SPVQǰBTǰBǰNBKPSǰFMFNFOUǰPGǰQSPEVDUJPOǰUPǰPCUBJOǰBǰUPQRVBMJUZǰ program *OǰBEEJUJPOǰUPǰDMFBSMZǰEFUFSNJOFǰUBSHFUǰWJFXFST ǰUIFǰ$PNQBOZǰDBQJUBMJ[FTǰPOǰUIFǰDPNQFUJUJWFǰTUSFOHUIǰPGǰPVSǰ PSHBOJ[BUJPO ǰJOǰUIFǰUFFOǰNBSLFUǰPGǰMBSHFǰTDBMFǰBOEǰIJHIǰQVSDIBTJOHǰQPXFS ǰJOǰUIFǰEFTJHOǰBOEǰQSPEVDUJPOǰPGǰXPSLǰ to obtain top-quality programs, using talented artists/performers/singers/teen emcees in our care, our music and other contents as a major element to create work, upon combined with the strength of our crew members who are highly skilled and experienced in the production of TV programs and videos, top-quality work is produced and great feedback is achieved.

3) Formulation of sale patterns to create maximum value for customers The design of sale patterns of advertising media to respond to the needs of and create maximum value for customers in a package deal i.e. the sale of loose spot airtime in tandem with marketing activities to repeat and create brand awareness among customers by placing emphasis on the creation of marketing activities in a CSR DPODFQUǰ $PSQPSBUFǰ4PDJBMǰ3FTQPOTJCJMJUZ ǰUPǰFODPVSBHFǰDPOTDJFODFǰBOEǰQVCMJDJ[FǰLOPXMFEHFǰBCPVUǰUIFǰTPDJBMǰ responsibility towards consumers, presented in a way that blends into with the program content and is able to communicate the properties of the product in an effective manner to make the spending of advertising budget of customers most value for money.

4) Creation of overall quality to gain customer recognition The Company focuses on the creation of overall quality in every work unit to gain customer trust and recognition, not only limited to production quality for customer satisfaction but also included before and after sale services such as the response to customer needs in a prompt and proper manner, listening to their problems and coming up with solutions for them.

5) Program development to meet the tastes of target viewers An analysis of target viewer requirements is conducted on a regular basis from which the results are used to develop production style and technique in line with the requirements of target viewers and customers to steadily boost program ratings and sales.

6) Administrative and cost management "ǰTUSVDUVSFǰIBTǰCFFOǰMBJEǰUPǰHJWFǰŴFYJCJMJUZǰJOǰBENJOJTUSBUJWFǰBOEǰDPTUǰNBOBHFNFOUǰCZǰVTJOHǰPVSǰFNQMPZFFTǰUPǰ produce work of some parts and hiring outsiders to produce work of other parts (outsourcing).

MEDIA REVOLUTIONIST 33

Competition As consumer behaviors in Thailand have changed, many of them begin to seek distinctive information that NFFUTǰUIFJSǰQSFGFSFODFT ǰCVUǰGSFFǰ57ǰNFEJBǰBWBJMBCMFǰOPXǰDBOOPUǰTVQQMZǰTVDIǰTQFDJųDǰJOGPSNBUJPOǰBOEǰDPOUFOUTǰUPǰ serve individual tastes and needs. Recently, many entrepreneurs have been more engaged in satellite TV business in diverse forms including music, news update, infotainment and even product selling channel, thus making satellite TV the business with high-growth potential; additionally, the development of technology helps bring down the cost and the breakeven point can be reached in a few years’ time. Like others, the Company has the policy to expand services or increase bandwidth/channels in response to today’s consumer preferences and lifestyles.

The provision of satellite TV services is a hot new trend evolving worldwide because of not-so-high investment when compared with free TV which requires an intensive capital of several billion baht, and satellite TV will have a MBSHFSǰOVNCFSǰPGǰTQFDJųDǰWJFXFSTǰUIBOǰGSFFǰ57ǰXIJDIǰIBTǰBǰXJEFSǰSBOHFǰPGǰWJFXFSTǰǰǰ$VSSFOUMZ ǰGSFFǰ57ǰDBOǰHFOFSBUFǰ income from the sale of advertising airtime in an average amount of 40,000 million baht; so, if a satellite TV station is operated at the full scale, its advertising airtime sales may be as high as 100,000 million baht for both inbound and outbound.

Two marketing communication models have been so far adopted by suppliers in Thailand i.e. 1) a type of advertising through media or above-the-line activities and 2) a type of advertising through direct means of communication or below-the-line activities. In the wake of rising advertising costs compounded by various rules, regulations, prohibitions banning the advertisement of some products on free TV, lots of record labels shift their focus to direct marketing activities towards the target group, thus heightening the percentage of spending in below- the-line activities which better reach the target group while at the same time generate sales. However, upon the time satellite TV plays a greater role, the percentage of above-the-line spending will regain popularity due to its much cheaper cost; moreover, the development of technology will enable product owners to shoot advertising TQPUTǰUPXBSETǰFBDIǰTQFDJųDǰ[POFǰBTǰSFRVJSFEǰUPǰCPPTUǰTBMFTǰJOǰBOZǰBSFBǰUIFZǰBSFǰTUJMMǰUIFǰVOEFSEPHT ǰBOEǰUIJTǰXJMMǰ intensify battle lines in the provinces because local marketing activities and the direct shooting of advertising spots BUUPǰBǰTQFDJųDBMMZǰEFųOFEǰ[POFǰDBOǰCFǰPSHBOJ[FEǰPSǰNBEFǰFBTJFS

Even though, in 2013, there are many new players coming into the satellite television industry which causes high competition for the existing advertising budget, however, the industry is still large enough for more growth. In the past year, RS still holds on as the number 1 leader, and as the company that provides service platform that produces contents directly to serve the market requirements, it has good opportunity in building the added value for products and gains high competitive advantage as well. 34 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Procurement of Products and Services The Company is in alliance with several leading satellite service providers like PSI, DTV and many more to come JOǰUIFǰGVUVSF ǰXJUIǰUIFǰBJNǰPGǰFYQBOEJOHǰDIBOOFMTǰUPǰSFBDIǰUIFǰUBSHFUǰHSPVQT ǰCZǰTUSJWJOHǰUPǰNJOJNJ[FǰDPOTUSBJOUTǰPOǰ an access to bandwidth as well as having a policy to open more channels to satisfy the requirements of consumers JOǰUIFǰHMPCBMJ[BUJPOǰBHFǰǰǰǰǰ5IFSFǰJTǰBǰNFUJDVMPVTǰTFMFDUJPOǰPGǰQFSTPOOFM ǰCPUIǰPOTUBHFǰBOEǰCBDLTUBHF ǰXIPǰ BSFǰUBMFOUFE ǰFYQFSJFODFEǰBOEǰSFDPHOJ[FEǰCZǰUIFǰUBSHFUǰHSPVQTǰǰ1FSTPOOFMǰPOTUBHFǰXJMMǰCF ǰPGǰDPVSTF ǰBSUJTUTǰBOEǰ performers in RS care; however, we cast independent artists and performers as well. As regards concept creation and production control, they are wholly managed by our in-house teams, while some parts of production are managed by our in-house teams and the other parts are managed in an outsourcing manner.

Radio Business 34ǰPQFSBUFTǰUIFǰ'.ǰǰ.)[ǰGSFRVFODZǰVOEFSǰUIFǰCSBOEǰOBNFǰĶ$PPMǰ'BISFOIFJUǰķ ǰUIFǰ'.ǰǰĶ$PPMǰ$FMDJVTǰ 91.5”, and “F.M. 88.5 Sabaidee Radio” with the following details:

'.ǰǰ.)[ '.ǰǰ.)[ '.ǰǰ.)[ Radio Station COOL Fahrenheit 93 COOL Celcius 91.5 Sabaidee Radio Concessioner Navy Radio Station Army Radio Station Navy Radio Station On Air Date and Time 24 hours 24 hours 24 hours Signal Coverage Bangkok and vicinity Bangkok and vicinity Bangkok and vicinity Program Concept ǰ.JOVUFTǰ.VTJDǰ'SFF[Fǰ Contemp Revo international Various Thai music your Mind Music Station For the family Target Audience Students and working Working male & female aged Students and working people aged 20 - 34 years 20-34 years old who prefer people aged 15 - 45 old international music years old

The Sky High Network Co., Ltd has changed to another new name as COOLISM Co., Ltd., and having 2 radio stations under its control i.e., COOL Fahrenheit 93, and COOL Celsius 91.5.

$00-ǰ'BISFOIFJUǰǰQSPDFFETǰBTǰQFSǰUIFǰ$PNQBOZĴTǰQPMJDZǰJOǰDPOEVDUJOHǰUIFǰGVMMZǰDPNNFSDJBMJ[FEǰCVTJOFTTǰPGǰ SBEJPǰPQFSBUJPOǰ&NQIBTJ[FǰJTǰTUJMMǰPOǰNBJOUBJOJOHǰJUTǰPSJHJOBMǰQPQVMBSJUZ ǰBOEǰJODSFBTJOHǰJUTǰBVEJFODFǰCBTFǰ"UǰQSFTFOU ǰ it still maintains clear audience base, and popularity, and manages to receive the most popularity vote in each of UIFǰBVEJFODFǰCBTFǰGSPNǰTVSWFZJOHǰEBUBǰPGǰ/JFMTFOǰ.FEJBǰ3FTFBSDIǰ5IJT ǰSFTVMUTǰJOǰDPOųEFODFǰJOǰVTJOHǰNFEJBǰGPSǰ advertising purpose from the Company’s clients of advertising agencies, and products; owners. MEDIA REVOLUTIONIST 35

Radio Station Theme Radio Station: F.M. 93.0 MHz. COOL Fahrenheit 93

Mon - Fri COOLJ 06.00 - 09.00 Patarawut Singhaseni 09.00 - 12.00 Pipat Wittayapunyanon 12.30 - 15.00 Warongporn Wichaidith 15.00 - 19.00 Porworn Kijcharoenkarnkun 19.00 - 19.30 Theerapat Chaijunyar 20.30 - 23.00 Kunda Srithammanupathum 23.00 - 02.00 Rungrong Vannaroth Sat - Sun 02.00 - 06.00 Sweep music

$PPMǰ'BISFOIFJUǰǰPGGFSTǰFBTZMJTUFOJOHǰ5IBJǰTPOHTǰXIJDIǰBSFǰGBWPSFEǰCZǰUIFJSǰBVEJFODFǰ*UǰJTǰUIFǰųSTUǰSBEJPǰ station, hosted by accepted professional PJs, that allows the audience to listen to voted songs for 50 minutes continuously. Activities that respond to the audience’s lifestyles and challenge the working group listeners are also part of the program, which enhances Cool Fahrenheit 93 to become number one radio for working people in a short period and by mutual consent according to Neilsen Media Research polls.

For these reasons, Cool Fahrenheit 93 has proved to be a popular radio station according to the Neilsen Media Research popularity poll, 10 years frequencies from 2002 to present (data as of December 2013). It has been ranked as the top station in the Easy Listening category for working group aged between 20 - 34 years old.

$00-ǰ$FMTJVTǰǰGVODUJPOTǰVOEFSǰUIFǰ$PNQBOZĴTǰQPMJDZǰCZǰPQFSBUJOHǰBTǰGVMMZǰDPNNFSDJBMJ[FEǰSBEJPǰTUBUJPOǰ UIBUǰFNQIBTJ[FTǰPOǰJUTǰQPQVMBSJUZ ǰBOEǰFYQBOETǰUPǰXJEFSǰUBSHFUǰMJTUFOFSTǰXJUIǰNPSFǰMJTUFOJOHǰUJNFǰ.BOZǰNBSLFUJOHǰ promotion activities are used to directly reach listeners’ lifestyle, and thus, at present, the COOL Celsius 91.5 receives more and more popularity. This resulting in clients from advertising agencies and products’ owners are DPOųEFOUǰJOǰDPOUJOVPVTMZǰVTJOHǰUIFǰ$PNQBOZǰUPǰBEWFSUJTFǰUIFJSǰQSPEVDUT Radio Station Theme Radio Station: F.M. 91.5 MHz. COOL Celsius 91.5

Mon - Fri COOLJ 07.00 - 10.00 Atiruj Prakitsuwan 10.00 - 13.00 Leela Soonthornvinej 13.00 - 16.00 Narkwan Rayananon 16.00 - 19.00 CJ Charoenchusana 20.30 - 23.00 (Fri. - Wed.) Ploypailin Pamornmontri 20.30 - 23.00 (Thu. - Fri.) Nuttawuj Janemana 23.00 - 02.00 Patrick Chainarm Sat - Sun 02.00 - 06.00 Sweep Music 36 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

COOL Celsius 91.5 represents the radio program on international songs and variety programs. COOL Celsius 91.5 IBTǰTUBSUFEǰJUTǰCSPBEDBTUJOHǰJOǰ.BSDIǰ ǰ ǰBOEǰIBTǰCFDPNFǰUIFǰųSTUǰ5IBJǰSBEJPǰTUBUJPOǰUIBUǰJOUSPEVDFTǰUIFǰGPSFJHOǰ copyright contents. COOL Celsius 91.5 will use the strategy called “Killer Content” by bringing in the program on the report of American Top 40 using the famous host “Ryan Secrest” and to be broadcasted life with other 150 stations worldwide. Other content is the “Call me COOLISTA” that shows lifestyle contents on food, journey and including various fashions which answers all listeners’ lifestyle.

RSiam operates this single radio frequency as the main business in promoting RS contents together with its radio NFEJBǰPQFSBUJPOǰCZǰCSPBEDBTUJOHǰUISPVHIǰ'.ǰǰ.)[ ǰGSFRVFODZǰ3FWFOVFTǰXJMMǰCFǰGSPNǰTBMFTǰPOǰBEWFSUJTJOHǰ time and event productions. Sabaidee Radio operates its radio business in accordance with the Company’s policy with its main business in promoting contents of the Company together with its radio media operation. Its main targets are to protect its popularity, expand for a wider customer base, and increase the listening time. At present, Sabaidee Radio has won the audiences’ hearts, and has been listed by the AGB Nielsen Media Research, and IBTǰSFTVMUFEǰJOǰDPOUJOVPVTǰDPOųEFODFǰJOǰVTJOHǰUIFǰ$PNQBOZĴTǰNFEJBǰDIBOOFMǰBNPOHǰBEWFSUJTJOHǰBHFODJFTǰBOEǰ products’ owners alike.

Radio Station Theme F.M. 88.5 MHz Sabaidee Radio

Mon - Fri DJ Sat. – Sun. DJ 05.00 - 07.00 Naynay 05.00 - 07.00 Oo Puntawee 08.00 - 11.00 Bughar Saree 09.00 - 11.00 Nat Avita 11.00 - 14.00 Golfy Nuttama 11.00 - 14.00 Joe Chalermsak / Noom Chaiyoo 14.00 - 17.00 Noom Chaiyoo 14.00 - 17.00 Tonk / Oui 17.00 - 20.30 Bugnar Saree 17.00 - 20.30 Ekapon Chaiwat 20.00 - 23.00 Tum + Kwang 20.00 - 23.00 Ping Fruitty 23.00 - 01.00 Jenny 23.00 - 01.00 ǰ/POHǰ-PPLǰǰ/V[[B 01.00 - 03.00 Paisarn Kaew-wiset 02.00 - 05.00 Olive 03.00 - 05.00 Touch MEDIA REVOLUTIONIST 37

Sabaidee Radio F.M. 88.5 presents with variety of Thai music i.e. country music, country for life music, country music with southern and northern accent, north-eastern music style, Mor-Lum, oldies string music, and including country pop music with the aim for easy listening, and popular to all members of the family. The radio frequency is widely and overwhelmingly accepted from audiences as its programs create good humor atmosphere among listeners similar to its name as “Sabaidee Radio, the new alternative radio frequency that creates smile and well- being families”. All songs have been selected from chart listed song hits with top download volume, and including decent materials to create good humor and well- being to families at all times. There are also professional teams of DJs who are well accepted from audiences in which some of them are very familiar with Sabaidee Radio fan club. Moreover, activity arrangements to serve life styles and friendships with the existing fan club members and expansion of the new fan club base have been created continuously. The resulting achievement enables Sabaidee radio F.M. 88.5 to receive acceptance and love, and constant loyalty from listeners

Hence, from research of AGB Nielsen Media Research, Sabaidee Radio F.M. 88.5 receives the most popular radio TUBUJPO ǰBOEǰBMTPǰSFDFJWFTǰUPQǰQPQVMBSǰWPUFǰTJODFǰJUTǰPQFOJOHǰJOǰ+VMZǰǰVOUJMǰQSFTFOUǰJOǰUIFǰTUVEFOUǰBOEǰPGųDFǰ worker groups’ category (15 - 45 years).

Marketing and Competition At present, even though behavior of listeners through radio stations has been decreasing, nevertheless, the number of music listeners on-line through websites and mobile applications has increased. The COOL Fahrenheit 93 and COOL Celsius 91.5 radio stations have registered gradually increasing listeners as the number of listeners through websites and mobile applications through both stations have registered at more than 1,500,000 and 300,000 listeners respectively. Marketing Strategies

1. Value for money Strategy *Oǰ ǰUIFǰ$PNQBOZǰIBTǰVTFEǰWBMVFǰGPSǰNPOFZǰTUSBUFHJFTǰUPǰDSFBUFǰBOǰPQUJNVNǰCFOFųUǰUIBUǰTVJUTǰUIFJSǰ DVTUPNFSĴTǰBEWFSUJTJOHǰCVEHFUǰCZǰTFMMJOHǰQBDLBHFT ǰFYQBOEJOHǰUIFǰMPPTFTQPUǰUJNFǰBOEǰPSHBOJ[JOHǰĶBDUJWJUJFTǰJOǰ programs” and marketing events. These have added to the value of sales promotions and investment.

2. Promotion Strategy Surrounded by the intense competition in the radio business that necessitates the differentiation of programs for value addition to the radio frequencies, customers and products that are engaged in the promotion activities, the sale of advertisement time no longer adequately corresponded to the demand of customers and the branding PGǰUIFǰDPNQBOZǰBOEǰSBEJPǰGSFRVFODZǰ"DDPSEJOHMZ ǰUIFǰ$PNQBOZǰIBTǰBEKVTUFEǰJUTǰQPMJDZǰCZǰFNQIBTJ[JOHǰUIFǰ promotion activities by forging the business synergy with other kinds of alliance by joining as media partner for activities or concerts with the same target customers’ group.

*OǰBMMǰPGǰUIFTFǰQSPNPUJPOǰBDUJWJUJFT ǰUIFǰ$PNQBOZǰFNQIBTJ[FEǰUIFǰRVBMJUZǰBDUJWJUJFTǰUIBUǰXJMMǰCPUIǰFOMJHIUFOǰ BOEǰFOUFSUBJOǰUIFǰQBSUJDJQBOUTǰBOEǰTJNVMUBOFPVTMZǰDPSSFTQPOEǰUPǰUIFǰNBSLFUJOHǰQPMJDJFTǰPGǰDVTUPNFSTǰJOǰBOǰFGųDJFOUǰ manner. This proves to be another channel of revenue-generating of the Company by arranging the promotion activities for customers. 38 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

*OǰBEEJUJPO ǰUIFǰ$PNQBOZǰVTFEǰUIFǰQPUFOUJBMǰPGǰJUTǰ"EWFSUJTJOHǰBOEǰ13ǰ%FQBSUNFOUTǰUPǰQVCMJDJ[FǰUIFǰBDUJWJUJFTǰ of its radio stations. The clients’ activities were widely accepted in the form of PR news and advertisements on TV QSPHSBNT ǰJOǰNBHB[JOFT ǰBOEǰPOǰPVUEPPSǰBOEǰNPCJMFǰNFEJBǰ

3. Advertising Planning Service With its long experience in the radio business, the company has a thorough understanding of all aspects of the business. Its staff can advise clients how to plan the best quality media management. They can also help them choose the most appropriate airtime or advertising package to suit their purpose and reach the audience.

The Company has planned advertising campaigns with special activities to meet the needs of the customers and the limitations on each product type, especially alcohol-mixed beverages or other products that need an access to the particular market target. Based on the policies of its business partners, the Company and the program sponsors have planned advertising strategies that will keep Sponsors’ interested and return the greatest CFOFųUǰUPǰUIFNǰBTǰUIFZǰVTFǰUIFǰ$PNQBOZĴTǰNFEJBǰTFSWJDFǰ

Radio Station Operators Radio station operators that broadcast mainly the Thai, international, and country music, and having similar target audiences are shown in the following table:

Teenagers Students Working Group Adult Radio Station 10 - 18 years 15 - 25 years 18 - 35 years 25 - 45 years Thai Music Stations F.M. 89.0 Chill FM Competitor F.M.93.0 COOL 93 COOLISM COOLISM COOLISM F.M. 103.5 FM ONE Competitor Competitor F.M.106.5 Green Wave Competitor Competitor International Music Stations F.M. 102.5 Get FM Competitor F.M. 91.5 COOL 91.5 COOLISM COOLISM '.ǰ&B[Zǰ'. Competitor Competitor Competitor F.M. 107.0 Met 107 Competitor Competitor Country Music Station F.M. 88.5 Sabaidee Radio R Siam R Siam R Siam R Siam F.M.95 Looktung Mahanakorn Competitor Competitor Competitor F.M. 90 Sap Looktung Competitor Competitor Competitor Competitor F.M. 94.5 Kluen sanuk Competitor Competitor Competitor Competitor Sukniyom MEDIA REVOLUTIONIST 39

There is strong competition in the radio business because of limits on advertising expenditure. Clients prefer to buy advertising airtime on radio stations with good ratings. Consideration is given to pricing strategies that will allow the client to buy more airtime or choose a variety of advertising styles. This will depend on the sales strategy of each company; those who can show that they are providing the best value-added service will stay ahead of the competition.

Procurement of Product or Service

DJ and Production and Creative Personnel The Company has successfully brought about the innovation to the radio circle by employing the new marketing strategy, “PJ MARKETING” after the accomplishments in the program production of 93 Cool Fahrenheit BOEǰPUIFSǰBGųMJBUFEǰSBEJPǰGSFRVFODJFTǰCZǰNPWJOHǰUIFǰ%+ǰFSBǰJOUPǰUIFǰ1+ǰ 1SPHSBNǰ+PDLFZ ǰPOFǰ&BDIǰ1+ǰJTǰSFRVJSFEǰUPǰ FOIBODFǰPOFĴTǰPXOǰQPUFOUJBMǰCZǰQPTTFTTJOHǰUIFǰCBTJDǰNBSLFUJOHǰLOPXMFEHFǰBOEǰPQUJNBMǰUFDIOPMPHZǰVUJMJ[BUJPOǰJOǰ particular. PJs are the key factor contributing to the reputation of the radio station as they are responsible people who have a good understanding of the music, and the ability to communicate with the listeners. With training, they can improve their knowledge of technology in order to be able to handle state-of-the-art equipment and software. They host their programs in a style that meets the taste of the target listener, and may also work externally as program hosts for sales promotion activities.

Broadcasting System The Company uses a computer system for automatic broadcasting control which is the technology of international standards by which its software is regularly updated to keep up with the ever-changing trends and achieve top broadcasting quality. 40 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 05 Risk Factors MEDIA REVOLUTIONIST 41

Risk Factors RS Group has evaluated the risks that might affect its Moreover, the Company has already set up the Companies and subsidiaries that may result in impacts copyrights’ collection company in order to manage toward its business operations as follows: the copyrights’ collection fees from operators who use the Company’s contents commercially as well as Risks from copyright violation monitoring and suppressing operators who violate the From the past up to the present day, music industry Company’s copyrights. The Government, on this part, suffers from the copyright violation impact in the has given cooperation and support in law enforcement form of physical products (CD, VCD, DVD), and in the against the copyrights’ violators. Campaigns on digital form which results from the widely spreading prevention, compression, and suppression copyrights’ distribution of various copyright violation products. violators have been seriously and substantially Technology advancement and popularity of websites enforced by the Government. Hence, from cooperation also assist in downloading of music or various free on all sides, the Company expects that impact against contents. Moreover, consumers’ perception is still UIFǰDPQZSJHIUTĴǰWJPMBUJPOǰXJMMǰCFǰSFEVDFEǰTJHOJųDBOUMZǰǰǰ impassive on campaign for the copyright product, and perceives that copyright violation through music Risks from concessions renewal download is quite an ordinary matter. Thus, revenues Concession for Radio Business from the product distribution and music downloading Normally, the leasing period for the radio station’s EPǰOPUǰSFBMMZǰSFŴFDUǰUIFǰSFBMǰDPOTVNQUJPOǰųHVSFǰ broadcasting is about 2 years, if the leasing time has not been extended, it will result on impacts on the However, in the past, all parties involved, in the broadcasting continuity and the Company’s revenue. Government and private sectors, including entrepreneurs, This will include risk on any changes in the contract music composers, and artists have joined in to conditions which may result in the inferior condition collaborate in encouraging consumers to purchase from original contract. Moreover, searching for the copyright products and refrain from supporting all type new radio broadcast’s airing time as replacement may of pirate products. result in losing business continuity, and in building similar popularity rating as the previous program, 5IFǰ $PNQBOZǰ IBTǰ SFBMJ[FEǰ UIFǰ JNQPSUBODFǰ PGǰ or may cause higher cost as well. However, the this problem, and has adjusted its strategies and Company truly believes that due to its continuously implementations to stimulate the recovery of its sales producing good quality performances and receiving ųHVSFǰ 5IFTFǰ BSFǰ JOǰ UIFǰ GPSNTǰ PGǰ BEKVTUJOHǰ QSPEVDUǰ high popularity with constant listeners’ base group, pricing to a more suitable level, digital system’s including as an important business operator who development and legal music download channel with abides with standard payment and strictly conforms to copyright. The adjustment of product image and new payment conditions on airing time as well as on building service to serve the changing need and living pattern of good relationship with the concession provider, the consumers encourages more consumers to turn back Company will receive some trust and, thus, reduce to legal copyright music download as it is worthwhile some risk that may happen during concession renewal. and not expensive. Nevertheless, the Company will consider value of the concession renewal by comparing with investment DPTUǰ*GǰUIFǰDPODFTTJPOǰSFOFXBMǰEPFTǰOPUǰCFOFųDJBMǰUPǰ the Company, investment on concession renewal may not be considered. 42 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Concession for Satellite Television Business Government agency that supervises television business 5IFǰ 0GųDFǰ PGǰ UIFǰ /BUJPOBMǰ #SPBEDBTUJOHǰ BOEǰ operators in Thailand with its main duty in supervising, Telecommunications Commission (NBTC) has made and issuing various regulations in order to control announcements on the regulations and methods in free and fair competition among television business giving permission for radio and television broadcasting operators with ethical standards. Consumers are to be JOǰPSEFSǰUPǰPSHBOJ[FǰUIFǰTBUFMMJUFǰUFMFWJTJPO ǰBOEǰDBCMFǰ QSPUFDUFEǰPOǰUIFJSǰCFOFųUT ǰBOEǰOPUǰUPǰCFǰFYQMPJUFEǰ television operators into its regulatory mechanisms. by business operators such as supervision on the The NBTC will issue licenses to operators periodically content to have suitable quality with the target group, in which the initial permits will have 1 year duration, suitability rating on contents for children and youth, and after that consideration will be made to issue advertising, etc. At present, NBTC still makes regular licenses of no more than 2 years at a time. During new announcements in accordance with its policy, this time, NBTC will take into consideration, using and problem concerning business operators, hence, complaints from the people on any offences, including announcements from the NBTC still exist together other new regulations that NBTC will introduce in with all the television business operators. Hence, all future, as the basis to consider the issuing of the renewal the announcements that will be issued to control the licenses to each operator. The periodic issuing of television business operations, will not be stable, and licenses with a rather short operating time may limit XJMMǰSFRVJSFǰBǰQFSJPEǰPGǰUJNFǰUPǰSFBMJ[FǰBOZǰJNQBDUǰPOǰ business operations, manufacturing plans, and revenue business operations of the Company, and eventually generating of the Company, however, the Company SFŴFDUǰSJTLTǰPOǰCVTJOFTTǰPQFSBUJPOT SFBMJ[FTǰ UIFǰ JNQPSUBODFǰ PGǰ TUSJDUMZǰ DPNQMZJOHǰ XJUIǰ SVMFTǰBOEǰSFHVMBUJPOTǰJOǰPSEFSǰUPǰDSFBUFǰDPOųEFOUǰUIBUǰ Risks from intense competition in the television continuous renewal of license on satellite television media business will be granted. Over the past years, the television industry encounters intense competition which can be seen from the 3JTLTǰGSPNǰBOOPVODFNFOUTǰPOǰSFHVMBUJPOTǰGSPNǰUIFǰ0GųDF occurrence of various new programs on satellite and of the National Broadcasting and Telecommunications local television channels. The birth of digital television Commission (NBTC) in 2014 will result in hundreds of television channels when summing up of all platforms while consumers The Company operates the satellite television business will have variety of choices on numerous television and is one of the concession bidders who have won channels. The advertising agencies will have more concessions on operating the digital terrestrial television choices for their advertising media by having “rating” on December 26, 2013. The television business i s and “value for money” as criteria in placing the considered as a mass communication business that is BEWFSUJTJOHǰNFEJBǰXIJDIǰXJMMǰSFTVMUǰJOǰNPSFǰEJGųDVMUZǰ WFSZǰJOŴVFOUJBMǰUPǰUIFǰQFPQMFǰBTǰQFPQMFǰDBOǰSFBDIǰBOEǰ for selling the advertising time. However, from the receive information thoroughly more than any other Company experiences in the production of television mass media channels, hence, business operations programs, and in managing its own satellite television of the television business is essentially operated for a long time and having quality personnel which VOEFSǰ UIFǰ MBXTǰ 0GųDFǰ PGǰ UIFǰ /BUJPOBMǰ #SPBEDBTUJOHǰ ranks it with high ranking position in satellite television and Telecommunications Commission (NBTC) is the channels from the Nielsen Media Research (the survey MEDIA REVOLUTIONIST 43

BOEǰ NBSLFUǰ SFTFBSDIǰ DPNQBOZǰ UIBUǰ JTǰ SFDPHOJ[FEǰ that make it impossible to continue, etc. However, worldwide) will eventually enable it to capture and the Company has stipulated the screening process, maintain its market share from competitors in the evaluating its usefulness, and cost effectiveness prior industry. to investment. Study on the project feasibility has to be conducted prior to signing any contract or any other Risks from occasional huge marketing events CJOEJOHǰDPOEJUJPOǰCZǰVTJOHǰFYQFSUTǰGSPNǰSFMBUFEǰųFMETǰ The Company has continuous plan to expand its to jointly consider for cautiousness and conciseness of business, and some acquired project may require the project. Moreover, advanced planning and early a rather high investment cost which may encounter preparation have to be conducted by the arranging of some risk if revenue management cannot be reach pre-sale from supporting sponsors when the project according to plan. Causes may derive from many factors is still in its production process. Additionally, large such as from rapid change in technology, changes in project has to be approved by the Company’s Board consumers’ behavior, various changing trends, more of Directors in order to reduce any risk that may occur JOUFOTJųFEǰDPNQFUJUJWFǰTJUVBUJPOǰJOǰUIFǰJOEVTUSZǰBTǰXFMMǰ from the investment. as contract termination, or the occurrence of any event 44 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 06 Property used in the business MEDIA REVOLUTIONIST 45

Property used in the business

Property used in the business operations of the Company and subsidiaries company (Group RS) detailed as follows.

Land The Company and subsidiary company rented the land from the Chetchotisak Company Limited. Detail are described in Related party transactions subject. Moreover in 2013, the Company and its subsidiaries have leased land from individuals outside the group, as detailed below.

Address Renter Contract term Rental fee/month (Baht) 1. 431/2-5 Soi Ladphrao 15 RS Public Company Limited 3 years 230,000 Jatujak, Bangkok (agreement expire on July 2014) 2. 48/18 Soi Ladphrao 15 RS Public Company Limited 8 years 4.5 months 40,000 - 45,000 Jatujak, Bangkok (agreement expire on 16 Oct 2013)

0GųDFǰ#VJMEJOH 0GųDFǰCVJMEJOHTǰVTFEǰJOǰUIFǰCVTJOFTTǰPGǰ34ǰHSPVQǰ5IFǰEFUBJMTǰBSFǰBTǰGPMMPXT

Address Ownership Type Book Value Year 2013 Obligation (million Baht) 431/2-5 RS Public Owner 0.03 Nil Soi Ladphrao 15 Company Jatujak, Bangkok Limited

5IFǰ$PNQBOZǰBOEǰTVCTJEJBSZǰDPNQBOZǰSFOUFEǰUIFǰ0GųDFǰ#VJMEJOHǰGSPNǰUIFǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰ%FUBJMǰ are described in Related party transactions subject.

Equipments Equipments used in the business of RS group. The details are as follows

Book Value Year 2013 Company Equipment and machinery Ownership Obligation (million Baht) 1. RS Public Company Studio recording and Owner 83.27 Nil Limited Broadcast equipment. 2. COOLISM Co.,Ltd. Recording Equipment Owner 2.55 Nil 3. RS International Broadcast equipment. Owner 3.57 Nil Broadcasting & Sports Management Co.,Ltd. 4. Yaak Co.,Ltd. Broadcast equipment. Owner 3.08 Nil 46 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Warehouse Warehouse of the Company and its subsidiaries are as follows.

Address Renter Contract term Rental fee/ month (Baht) 1. 9/102 Phaholyothin Road, RS Public Company 1 Year 200,000 Klongluang, Pathumthani Limited (agreement expire on Jan 2014) 2. 9/26, Building phaholyothin K-Master Co.,Ltd. 1 Year 100,000 klongluang pathumthani (agreement expire on Sep 2014)

Concession and Radio leases The Company and its subsidiaries lease radio stations from government agencies and third parties. As follows :

Station Station Owner Contract term ǰǰ'.ǰǰ.)[ Navy Radio Station 1 Jan 2014 – 31 Dec 2015 ǰǰ'.ǰǰ.)[ Navy Radio Station 1 Jan 2014 – 31 Dec 2015 ǰǰ'.ǰǰ.)[ Army Radio Station 1 Mar 2014 – 31 Dec 2014

Television leases The Company has leased air time at Channel 7 from Bangkok Broadcasting & TV Co., Ltd. (BBTV Channel 7) to broadcast television program in 2013.

Satellite service contract The Company has signed a satellite service agreement and other services Associated with Thaicom Public Company Limited for a period of 10 years. Effective from 1 August 2013 onwards.

5SBEFNBSLǰǰTFSWJDFǰ “Company” registered trademark / service “RS” for 2 types. The date of Registration is 10 November 2005 and 2 February 2007. Each Trademark has 10 years duration from the date of registration. The trademarks / service that expired, Company has been renewed by the law.

Each subsidiary companies separately registered trademarks. MEDIA REVOLUTIONIST 47 07 Legal disputes 48 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Legal disputes $PNQBOZǰBOEǰUIFǰTVCTJEJBSJFTǰIBEǰOPǰMFHBMǰEJTQVUFǰUIBUǰTJHOJųDBOUMZǰBGGFDUFEǰUIFǰ$PNQBOZĴTǰCVTJOFTTǰPSǰQPTFEǰ negative effects on the Group’s assets of which its overall value, as at 31 December 2013, was higher than 5% of shareholders’ equity. The Company and the subsidiaries had no legal dispute arisen from an out-of-the-ordinary course of business of the Group either. MEDIA REVOLUTIONIST 49 08 General information and other important information 50 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

General information and other important information

Company : RS Public Company Limited Type of business : Current business of RS contains 3 main business. Such as Music Business, Show Business and Media Business including Radio and Television. Address : 419/1 Soi Ladphrao 15, Ladphrao Road, Chomphon, Jatujak, Bangkok 10900 Registration No. : 0107546000016 Website : www.rs.co.th Tel. : 02-511-0555 Fax : 02-511-2324 Registered Capital : Baht 1,026,000,280 including 1,026,000,280 ordinary shares at one Baht par value Paid-up Capital : Baht 969,688,428 including 969,688,428 ordinary shares at one Baht par value

Share register : Thailand Securities Depository Co., Ltd. 62 The Stock Exchange of Thailand Building, Rachadapisek Road, Klongtoey, Bangkok 10110 Tel : 02-229-2800 Fax : 02-654-5427 Website : www.tsd.co.th

Auditor : Karin Audit Company Limited 6Fl., Room B1, Boonmitr Building, 138 Silom Road, Bangrak, Bangkok 10500 Tel : 0-2634-2484-6 Fax : 0-2634-2668 Website : http://www.karinaudit.co.th

Legal : -FHBMǰ0GųDF ǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFE 419/1 Soi Ladphrao 15, Ladphrao Road, Chomphon, Jatujak, Bangkok 10900 Tel : 02-511-0555 Fax : 02-938-5622 MEDIA REVOLUTIONIST 51 09 Securities and Shareholder Information 52 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Securities and Shareholder Information Registered Capital and Paid-up Capital As of December 31, 2013, the Company has the registered capital of Baht 1,026,000,280 including 1,026,000,280 ordinary shares at one Baht par value. The Company has the paid-up capital of Baht 953,866,816 including 953,866,816 ordinary shares at one Baht par value. And As of January 9, 2014, the Company has the registered capital of Baht 969,688,428 including 969,688,428 ordinary shares at one Baht par value

Shareholders The 10 major shareholders as at the book closure date on December 27, 2013 are as follows:-

No. List of Shareholders Shares percentage 1 Mr. Surachai Chetchotisak 309,000,000 32.394 2 Mr. Sorat Vanichvarakij 163,250,000 17.114 3 Mr. Yothin Vanichvarakij 41,088,400 4.308 4 Mr. Pramote Pasawong 20,000,000 2.097 5 RS Public Company Limited 17,000,000 1.782 6 Krungsri Taweesap Retirement Mutual Fund 16,921,400 1.774 7 SIX SIS LTD 15,404,240 1.615 8 Allianz Ayudhya Life Insurance Public Company Limited 13,528,000 1.418 9 Mr. Suwat Chetchotisak 12,550,400 1.316 10 Thai NVDR Company Limited 11,754,195 1.232

-JTUǰPGǰNBKPSǰTIBSFIPMEFSTǰXIP ǰBDDPSEJOHǰUPǰUIFJSǰDPOEVDUT ǰXFSFǰBCMFǰUPǰBTTFSUǰUIFJSǰJOŴVFODFTǰUPXBSETǰUIFǰ management policy and operation procedure of the company with ulterior motives (Shareholding groups or shareholders who owned over 10% and holding position as the company’s director or sending representative as the company’s director). MEDIA REVOLUTIONIST 53

Warrants Warrants of RS Public Company Limited #2 (RS-W2) 5IFǰ4UPDLǰ&YDIBOHFǰPGǰ5IBJMBOEǰIBTǰHSBOUFEǰBǰMJTUJOHǰPGǰDFSUJųDBUFTǰSFQSFTFOUJOHǰUIFǰSJHIUTǰUPǰQVSDIBTFǰTIBSFTǰ (warrants RS-W2) of the Company from June 14, 2010 (Trade date) with the following details:

Type of Securities RS Public Company Limited Warrants # 2 (RS-W2) Secondary Market Main Market Number of Warrants 140,000,269 units 6OEFSMZJOHǰ4IBSFTǰǰǰǰǰǰǰǰǰǰǰǰǰ ǰTIBSFT Issuer RS Public Company Limited. The warrants were offered to existing shareholders names appeared in the shareholder register on May 12, 2010 in accordance to Section 225 of Securities and Stock Exchange of Thailand Act regarding the closing method of the shareholders register book and determining the rights of the Shareholders on May 13, 2010, at a ratio of 5 existing ordinary shares to 1 unit of Warrant for free. Rights of Warrants 5IFǰ8BSSBOUǰIPMEFSTǰDFSUJųDBUFTǰIBWFǰSJHIUTǰUPǰQVSDIBTFǰPSEJOBSZǰTIBSFTǰPGǰ34ǰ1VCMJD Company Limited at the Exercise Ratio of 1 unit of Warrant for 1 ordinary share at an Exercise Price of Baht 1.90 per share. However, the Exercise Price and Exercise Ratio are subject to any adjustment in the Exercise Price and Exercise Ratio. 5ZQFǰPGǰ8BSSBOUTǰǰǰǰǰǰǰǰǰǰǰǰǰ 5SBOTGFSBCMFǰOBNFEǰDFSUJųDBUF Term of Warrants 4 years from the issued date (Date of Issuance is on May 20, 2010, Date of Maturity Maturity and Last Exercise Date is on May 19, 2014 and warrants will be delisted on the next day.) Offering Price Baht 0 (Baht Zero) Exercise of Warrants: Warrant Holders can exercise the right to purchase ordinary shares of the Company UIFǰMBTUǰ#VTJOFTTǰ%BZǰPGǰ+VOFǰBOEǰ%FDFNCFSǰPGǰFBDIǰZFBSǰ5IFǰųSTUǰFYFSDJTFǰEBUFǰ is on June 30, 2011 and the last exercise date is on May 19, 2014.

Dividend payment policy 5IFǰDPNQBOZǰBOEǰJUTǰTVCTJEJBSJFTǰXJMMǰQBZǰBǰEJWJEFOEǰOPUǰMFTTǰUIBOǰǰQFSǰDFOUǰPGǰOFUǰQSPųUǰBGUFSǰUBYǰBOEǰMFHBMǰ reserve. However, the Board of Directors may consider and decide not to follow this policy, or adjust it in order to NBYJNJ[FǰUIFǰCFOFųUǰUPǰUIFǰTIBSFIPMEFST 54 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 10 Management Structure MEDIA REVOLUTIONIST 55

Management Structure

Board of Directors

Nomination and Remuneration Audit Committee Committee Executive Board Risk Management Committee

Corporate Governance Committee CEO Internal Audit

Human Development Committee

$IJFGǰ0QFSBUJOHǰ0GųDFS $IJFGǰ'JOBODJBMǰ0GųDFS $IJFGǰǰ$PNNFSDJBMǰ0GųDFS -FHBMǰ0GųDF

Human Resource Finance & Corporate Client Music and Digital and Administration Accounting Management Information Radio Showbiz Corporate Technology Communication Television Corporate Branding

Sport 56 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

RS Public Company Limited

Music Showbiz Media

Remark : In case of non 100% subsidiary, the rest of core shareholders are not the connected person of RS Public Company Limited.

Management structure of the company consists of 7 set of committees and subcommittees including: Board of Directors, Audit Committee, Nomination and Remuneration Committee, Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee. Details are as follows: MEDIA REVOLUTIONIST 57

Board of Directors "TǰBUǰ%FDFNCFSǰ ǰǰ5IFǰ#PBSEǰPGǰ%JSFDUPSTǰDPOTJTUTǰPGǰUIFǰGPMMPXJOHǰRVBMJųFEǰQFSTPOT

1. Mr.Surachai Chetchotisak Chairman 2. Mrs. Pornpan Techarungchaikul Director, Executive Committee, Risk Management Committee Chairman, Good Corporate Governance Committee Chairman, Human Development Committee Chairman and Company Secretary 3. Mr. Darm Nana Director, Executive Committee Risk Management Committee Good Corporate Governance Committee 4. Mr. Danaisidh Peslapunt Director Nomination and Remuneration Committee 5. Mr. Sutthisak Prasatkarukarn Director 6. Mr. Sorat Vanichvarakij Director 7. Mr. Phisit Dachanabhirom Independent Director, Audit Committee Chairman Nomination and Remuneration Committee Chairman 8. General Pairoj Panichsamai Independent Director and Audit Committee Nomination and Remuneration Committee 9. Associate Professor Witaya Danthamrongkul Independent Director and Audit Committee Nomination and Remuneration Committee

%FųOJUJPOǰPGǰ*OEFQFOEFOUǰ%JSFDUPSTǰ

*OEFQFOEFOUǰ%JSFDUPSTǰBSFǰEFųOFEǰBTǰFYUFSOBMǰEJSFDUPS ǰOPUǰJOWPMWJOHǰJOǰ&YFDVUJWFT ǰDPNQBOZǰTUBGG ǰ&YFDVUJWFǰ%JSFDUPSǰ PSǰBVUIPSJ[FEǰTJHOBUPSZǰEJSFDUPS ǰBOEǰCFǰJOEFQFOEFOUǰGSPNǰNBKPSǰTIBSFIPMEFST ǰ&YFDVUJWFTǰBOEǰSFMBUFEǰQBSUJFTǰ*Oǰ addition, Independent Directors are able to consider equitable treatment to shareholders and to preempt any QPTTJCMFǰDPOŴJDUǰPGǰJOUFSFTUǰCFUXFFOǰUIFǰDPNQBOZǰBOEǰSFMBUFEǰQBSUJFTǰ*OEFQFOEFOUǰ%JSFDUPSTǰTIBMMǰQPTTFTTǰUIFǰ RVBMJųDBUJPOTǰBTǰGPMMPXTǰ

1. Hold shares not exceeding 0.5% of the total number of shares entitled to voting rights in the Company, the parent company, the subsidiary companies, the associated companies or any corporations that may cause a DPOŴJDUǰPGǰJOUFSFTU ǰXIJDIǰTIBMMǰCFǰJODMVTJWFǰPGǰUIFǰTIBSFTǰIFMEǰIJTIFSǰSFMBUFEǰQBSUJFT 58 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

2. He/she has been neither Executive directors** nor been an employee/staff member/advisor getting salary paid, both in present time and two years before the appointment, of/by the Company, the subsidiary companies, the BTTPDJBUFEǰDPNQBOJFT ǰUIFǰBGųMJBUFEǰDPNQBOJFT ǰPSǰBOZǰDPSQPSBUJPOTǰUIBUǰNBZǰDBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTU

3. No relationship by blood or legal registration as parent, spouse, sibling, son/daughter and/or son/daughter in- MBXǰPGǰBOǰFYFDVUJWFǰPGųDFSǰPSǰBǰNBKPSǰTIBSFIPMEFSǰXJUIǰDPOUSPMMJOHǰQPXFS ǰPSǰBǰDBOEJEBUFǰXIPǰXJMMǰCFǰOPNJOBUFEǰ as an executive or a person in charge of the operations of the Company or the subsidiary companies.

4. Business relations can be divided as follows: (a) Relationship types Relationship between professional service providers and users ǰǰ'FBUVSFTǰ"VEJUPST ǰPUIFSǰQSPGFTTJPOBMǰTFSWJDFǰQSPWJEFSTǰTVDIǰBTǰMFHBMǰDPOTVMUBOUT ǰųOBODJBMǰBEWJTPST ǰ property appraisers, etc. ǰǰ4JHOJųDBOUǰMFWFMTǰUIBUǰBSFǰDBUFHPSJ[FEǰOPOJOEFQFOEFODF - Auditors: be prohibited in all cases - Other professional service providers: Transaction value exceeds Baht 2 million a year.

Trade/Business Relations (apply the similar guidelines to the Stock Exchange’s requirements regarding related party transactions: - Features: Business transactions in all types including normal transactions, real property leases/out-leases, ǰBTTFUTFSWJDFSFMBUFEǰUSBOTBDUJPOT ǰBOEǰųOBODJBMǰBTTJTUBODFǰHSBOUTǰPSǰSFDFJQUT ǰǰ4JHOJųDBOUǰMFWFMTǰUIBUǰBSFǰDBUFHPSJ[FEǰOPOJOEFQFOEFODF 5SBOTBDUJPOǰWBMVFǰJTǰœǰ#BIUǰǰNJMMJPOǰPSǰœǰǰPGǰUIFǰ$PNQBOZĴTǰ/5"ǰ OFUǰUBOHJCMFǰBTTFUT ǰXIJDIFWFSǰ is lower. While considering a value in each time of transaction, the total value of previous transactions over the past 6 months shall be inclusive.

C ǰ5IFǰTBNFǰSFMBUJPOTIJQǰBTǰ5ZQFǰ B ǰXJUIǰDPSQPSBUJPOTǰUIBUǰBSFǰDBUFHPSJ[FEǰOPOJOEFQFOEFODFǰTVDIǰBTǰNBKPSǰ shareholders, directors (except independent/audit directors) and executives or partners of those corporations.

(c) Prohibited period for no relationship in both types (a) and (b): In present time and two years before the appointment.

(d) Exemptions: In a necessary and reasonable case which does not happen frequently or constantly, an JOEFQFOEFOUBVEJUǰEJSFDUPSǰNBZǰCFBSǰBǰSFMBUJPOTIJQǰCFZPOEǰUIFǰTJHOJųDBOUǰMFWFMT ǰBTǰTFUǰPVUǰBCPWF ǰEVSJOHǰ IJTǰPSǰIFSǰUFSNǰJOǰPGųDF ǰQSPWJEFEǰUIBUǰBǰQSJPSǰBOEǰVOBOJNPVTǰBQQSPWBMǰGSPNǰUIFǰCPBSEǰPGǰUIFǰ$PNQBOZǰJTǰ obtained. Furthermore, the board of the Company must provide the disclosure of information regarding the BGPSFTBJEǰSFMBUJPOTIJQǰJOǰBǰSFHJTUSBUJPOǰTUBUFNFOUǰGPSǰBǰQVCMJDǰPGGFSJOHǰPSǰTFDVSJUJFTǰQMBDFNFOUǰ ųMJOHǰGPSN ǰBOǰ annual information disclosure (Form 56-1) and an annual report (Form 56-2). If that independent/audit director is nominated for another term, the board of the Company shall provide a description of the said relationship in the notice of the shareholders’ meeting on an agendum for the election of director. MEDIA REVOLUTIONIST 59

5. Be not appointed as a representative of any board members or major shareholders of the company, as well as being not appointed as a representative of other shareholders who bear relationship with major shareholders of the Company.

6. No restrictions that make him/her unable to freely express his/her opinions.

ǰǰ"OǰJOEFQFOEFOUǰEJSFDUPS ǰXJUIǰUIFǰDPNQMFUFǰRVBMJųDBUJPOT ǰBTǰTUBUFEǰJOǰDMBVTFTǰ ǰNBZǰCFǰEFTJHOBUFEǰBOEǰ BVUIPSJ[FEǰCZǰUIFǰCPBSEǰPGǰUIFǰ$PNQBOZǰUPǰNBLFǰBǰEFDJTJPOǰSFHBSEJOHǰUIFǰPQFSBUJPOTǰPGǰUIFǰ$PNQBOZ ǰUIFǰQBSFOUǰ DPNQBOZ ǰUIFǰTVCTJEJBSZǰDPNQBOJFT ǰUIFǰBTTPDJBUFEǰDPNQBOJFT ǰUIFǰBGųMJBUFEǰDPNQBOJFTǰBOEPSǰPUIFSǰDPSQPSBUJPOTǰ UIBUǰNBZǰDBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTU ǰXIJDIǰTVDIǰEFDJTJPOǰDBOǰCFǰDPMMFDUJWFMZǰNBEFǰ DPMMFDUJWFǰEFDJTJPO

*GǰBOǰJOEFQFOEFOUǰEJSFDUPSǰPGǰUIFǰ$PNQBOZǰBMTPǰIPMETǰPGųDFǰBTǰBOǰJOEFQFOEFOUǰEJSFDUPSǰGPSǰUIFǰQBSFOUǰDPNQBOZ ǰ UIFǰTVCTJEJBSZǰDPNQBOJFTǰBOEPSǰUIFǰBGųMJBUFEǰDPNQBOJFT ǰUIFǰCPBSEǰPGǰUIFǰ$PNQBOZǰTIBMMǰQSPWJEFǰUIFǰEJTDMPTVSFǰ of such information as well as the disclosure of overall remuneration that certain independent director gets paid, JOǰUIFǰųMJOHǰGPSN ǰ'PSNǰǰBOEǰ'PSNǰSFTQFDUJWFMZ

Notes * Related parties mean persons under Section 258 of Securities and Exchange Act. ǰ&YFDVUJWFǰEJSFDUPSTǰNFBOǰQFSTPOTǰXIPǰJOWPMWFǰJOǰUIFǰNBOBHFNFOUǰPGǰUIFǰ$PNQBOZ ǰIPMEǰPGųDFǰBOEǰBSFǰJOǰDIBSHFǰPGǰUIFǰ$PNQBOZǰ BTǰBOǰFYFDVUJWF ǰBOEǰBSFǰBVUIPSJ[FEǰTJHOBUPSJFTǰUPǰFYFDVUFǰBǰCJOEJOHǰEPDVNFOUǰPOǰCFIBMGǰPGǰUIFǰ$PNQBOZ ǰFYDFQUǰBǰTQFDJųFEǰQFSTPOǰ in any transaction already been approved by the Board to sign a binding document jointly with other director(s). "GųMJBUFEǰDPNQBOJFTǰNFBOǰTVCTJEJBSJFTǰPGǰUXPǰBOEǰVQǰIBWJOHǰUIFǰTBNFǰQBSFOUǰDPNQBOZ

Directors with Authority to Sign for the Company

%JSFDUPSTǰBVUIPSJ[FEǰUPǰTJHOǰGPSǰUIFǰDPNQBOZǰBSFǰ.Sǰ4VSBDIBJǰ$IFUDIPUJTBL ǰ.Sǰ%BOBJTJEIǰǰ1FTMBQVOU ǰ.STǰ1PSOQBOǰ 5FDIBSVOHDIBJLVM ǰ.Sǰ%BSNǰ/BOBǰBOEǰ.Sǰ4VUUIJTBLǰ1SBTBULBSVLBSOǰ5XPǰPGǰBCPWFǰEJSFDUPSTǰDBOǰKPJOUMZǰTJHOǰBOEǰBGųYǰ the company seal.

Roles of Board of Directors

The Extraordinary General Meeting of Shareholders No. 1/2003 held on January 13, 2003 had the resolution to EFUFSNJOFǰUIFǰTDPQFǰPGǰ#PBSEǰPGǰ%JSFDUPSTĴǰBVUIPSJUZǰJOǰUIBUǰ#PBSEǰPGǰ%JSFDUPSTǰJTǰBVUIPSJ[FEǰUPǰDPNNJUǰBOZǰBDUTǰ necessary for or related to the normal business operation of the company. The Board of Directors is in charged with overseeing the company’s operations to be in compliance with the country’s laws and regulations as well as the policies and resolutions of shareholders’ meetings. The Board of Directors can appoint the committee or assign any other persons to take any or several actions under the control of the Board of Directors except for the actions stated below. Those actions can be performed after receiving the approval from the shareholders’ meeting.

*OǰDBTFTǰXIFSFǰUIFǰDPNNJUUFFǰPSǰBOZǰQFSTPOǰIBTǰBǰDPOŴJDUǰPGǰJOUFSFTUǰXJUIǰUIFǰDPNQBOZǰPSǰJUTǰTVCTJEJBSJFT ǰUIFǰ DPNNJUUFFǰJOWPMWFEǰJOǰUIBUǰDPOŴJDUǰNBZǰOPUǰWPUFǰPOǰUIBUǰDBTFǰ 60 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

(A) Any case that the laws mention must be in compliance with the resolution of the shareholders’ meeting. (B) Performing cases where the committee gains the interest or where the laws and regulations the Stock Exchange of Thailand are mentioned must be approved by the shareholders’ meeting.

The following cases must be approved by the Board of Directors’ meeting and the shareholders’ meeting with a voting score of three-fourths of the number of shareholders attending the meeting and voting: (A) Trading or transferring the company’s businesses or an important part of the business. (B) Acquiring or receiving transferred business from other companies or private entities. (C) Making, rectifying or terminating the renting contracts for the entire business of the company or an important section of it. Appointing any person to run the company’s business or form a merger with any person for the QVSQPTFǰPGǰQSPųUǰBOEǰMPTTǰTIBSJOHǰ (D) Amending the Articles of Association or Memorandum of Association. (E) Increasing or reducing capital, issuing debentures, forming mergers or closing the company. (F) Any actions mentioned in the Securities Act or announcements by the Stock Exchange of Thailand requiring the approval of the shareholders’ meeting, such as the acquisition or disposal of assets of the listed company or any related items.

The Company’s Board of Directors is responsible for consideration the list of new Directors who have been screened and presented by the Nomination and Remuneration Committee. The listed Directors must be ready to dedicate their times, knowledge, and capabilities for the company, and understand the duties and responsibilities of Director as well. The company has in place the procedure to keep new directors informed about its business and operation for them to possess profound knowledge and understanding in the company’s business.

In addition, the Board of Directors conduct the annual assessment of their performance in line with the self- BTTFTTNFOUǰGPSNǰUPǰJOTQFDU ǰBTǰXFMMǰBTǰFOIBODFǰUIFǰFGųDJFODZǰPG ǰUIFJSǰQFSGPSNBODFǰ

Board of Directors Meeting Attendance for year 2013

Name Title No. of Attendance 1. Mr. Surachai Chetchotisak Chairman 4/4 2. Mrs. Pornpan Techarungchaikul Director 4/4 3. Mr. Darm Nana Director 4/4 4. Mr. Danaisidh Peslapunt Director 3/4 5. Mr. Sutthisak Prasatkarukarn Director 4/4 6. Mr. Sorat Vanichvarakij Director 4/4 7. Mr. Phisit Dachanabhirom Independent Director 4/4 8. General Pairoj Panichsamai Independent Director 4/4 9. Associate Professor Witaya Danthamrongkul Independent Director 4/4 MEDIA REVOLUTIONIST 61

Audit Committee As at December 31, 2013. The members of the Audit Committee are :

1. Mr. Phisit Dachanabhirom1 Chairman 2. General Pairoj Panichsamai Director 3. Associate Professor Witaya Danthamrongkul Director

Remark : 1 Mr. Phisit Dachanabhirom is the Audit Committee Member that has knowledges and experiences in reviewing the 'JOBODJBMǰ4UBUFNFOUTǰ)FǰJTǰUIFǰDFSUJųFEǰBVEJUPSǰ$1"ǰ-JDFOTFǰ/Pǰǰ)FǰSFOEFSTǰIJTǰBVEJUǰTFSWJDFTǰGPSǰOPOMJTUFEǰDPNQBOZǰǰ

Responsibilities of Audit Committee A. Attend the Board of Directors Meetings as to participate in policy determination, business decision making and corporate governance issues.

B. Consider and recommend the appointment of the auditor and the proposed audit fee including the following issues : Ļǰǰ5PǰFOTVSFǰUIFǰJOEFQFOEFODFǰPGǰUIFǰFYUFSOBMǰBVEJUPS ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰDPOTJEFSǰBOZǰGBDUPSTǰUIBUǰNBZǰ DPOŴJDUǰXJUIǰUIFǰBVEJUPSĴTǰFGųDJFOUǰBOEǰQSPGFTTJPOBMǰPQFSBUJPOTǰ Ļǰǰ5PǰGSFFMZǰEJTDVTTǰTJHOJųDBOUǰNBUUFST ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰNFFUǰQSJWBUFMZǰXJUIǰUIFǰFYUFSOBMǰBVEJUPSǰPODFǰ a year, without the management team being present.

C. Consider the policy and code of conduct of the internal audit department as to ensure their continual appropriateness and effectiveness.

D. Review the annual audit plans of the internal audit department.

E. Review the internal control and internal audit system as to ensure their appropriateness and effectiveness by coordinating with the internal and external auditors. The Audit Committee shall consider the following issues : Ļǰǰ5PǰTUSFOHUIFOǰUIFǰJOEFQFOEFODFǰPGǰUIFǰJOUFSOBMǰBVEJUǰEFQBSUNFOU ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰBQQSPWFǰBOZǰ selection, promotion, rotation or termination of the department head. Ļǰǰ5PǰFOTVSFǰUIFǰJOEFQFOEFODFǰPGǰUIFǰJOUFSOBMǰBVEJUǰEFQBSUNFOU ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰDPOTJEFSǰPUIFSǰ factors that might impact its independent performance, including reporting and supervision processes.

F. Consider the quarterly audit report and recommendations of the internal and external auditors as well as follow up the action taken according to such recommendations.

(ǰǰ3FWJFXǰUIFǰRVBSUFSMZǰ$PNQBOZǰBOEǰTVCTJEJBSJFTǰųOBODJBMǰSFQPSUTǰBTǰUPǰFOTVSFǰUIBUǰUIFZǰBSFǰBDDVSBUF ǰDSFEJCMFǰ and have adequate information disclosures according to the good corporate governance principle.

H. Ensure that the Company is in compliance with the rules or regulations prescribed by the Stock Exchange of Thailand and any other laws related to its business. 62 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

*ǰǰǰ3FWJFXǰUIFǰSFMBUFEǰUSBOTBDUJPOTǰPGǰUIFǰ$PNQBOZ ǰJUTǰTVCTJEJBSJFTǰBOEǰBOZǰQFSTPOTǰUIBUǰNBZǰDBVTFǰUIFǰDPOŴJDUǰPGǰ JOUFSFTU ǰUPǰFOTVSFǰUIBUǰUIFǰSFMBUFEǰUSBOTBDUJPOTǰBSFǰJOǰBQQSPQSJBUFǰDPOEJUJPOTǰXJUIPVUǰBOZǰCFOFųUǰFNCF[[MFNFOUǰǰ

J. Coordinate with the external auditor to consider any problems or restrictions encountered in performing ųOBODJBMǰTUBUFNFOUTǰBVEJU

K. Prepare the Audit Committee report. The report must be signed by the Chairman of the Audit Committee and disclosed in the Company’s Annual Report. Its report should include the following information : Ļǰǰ5IFǰOVNCFSǰPGǰDPNNJUUFFǰNFFUJOHTǰBOEǰBUUFOEBODFǰPGǰFBDIǰNFNCFS Ļǰǰ$PNNFOUTǰPOǰ ǰǰ"DDVSBUFOFTT ǰDPNQMFUFOFTTǰBOEǰDSFEJUBCJMJUZǰPGǰUIFǰDPNQBOZĴTǰųOBODJBMǰSFQPSU ǰǰ"EFRVBDZǰPGǰUIFǰųSNĴTǰJOUFSOBMǰDPOUSPMǰTZTUFN - Compliance with SEC’s and SET’s laws and regulation and other laws relevant to the company’s business. - Suitability of the external auditor. ǰǰ5SBOTBDUJPOTǰUIBUǰNBZǰDBVTFǰDPOŴJDUTǰPGǰJOUFSFTU ǰǰǰ0UIFSǰDPODFSOTǰUIBUǰIBWFǰBSJTFOǰBTǰUIFǰBVEJUǰDPNNJUUFFǰQFSGPSNFEǰJUTǰEVUJFTǰBTǰEFųOFEǰJOǰUIFǰDPNNJUUFFĴTǰ charter. Ļǰǰ"OZUIJOHǰFMTFǰXIJDIǰTIPVMEǰCFǰNBEFǰBWBJMBCMFǰUPǰTIBSFIPMEFSTǰBOEǰHFOFSBMǰJOWFTUPSTǰXJUIJOǰUIFǰTDPQFǰPGǰ duties and responsibilities assigned by the Board of Directors.

-ǰ5IFǰ"VEJUǰ$PNNJUUFFǰJTǰBVUIPSJ[FEǰUPǰJOWJUFǰUIFǰFYFDVUJWFǰEJSFDUPST ǰ.BOBHFNFOUǰPSǰDPODFSOFEǰQFSTPOTǰUPǰ either provide necessary information or attend the meeting.

M. Consider any other matters as assigned by the Board of Directors with the consent of the Audit Committee.

Nomination and Remuneration Committee "TǰBUǰ%FDFNCFSǰ ǰǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFFǰDPOTJTUTǰPGǰǰRVBMJųFEǰQFSTPOT

1. Mr. Phisit Dachanabhirom Chairman 2. General Pairoj Panichsamai Director 3. Associate Professor Witaya Danthamrongkul Director 4. Mr. Danaisidh Peslapunt Director

Duties and responsibilities of the Nomination and Remuneration Committee B ǰ&TUBCMJTIǰDSJUFSJBǰBOEǰQSPDFEVSFTǰGPSǰTFMFDUJOHǰBǰQFSTPOǰXIPǰJTǰRVBMJųFEǰUPǰIPMEǰPGųDFǰBTǰBǰEJSFDUPS ǰTFMFDUǰ best candidate in adherence to the procedures set out, and make the recommendation to the board who shall subsequently propose the nominee for appointment by the meeting of the shareholders of the Company. The duties and responsibilities can be outlined as follows: MEDIA REVOLUTIONIST 63

Ļǰǰ%FUFSNJOFǰRVBMJųDBUJPOTǰPGǰBǰEJSFDUPSǰJOǰBDDPSEBODFǰXJUIǰUIFǰTUSVDUVSF ǰTJ[FǰBOEǰDPNQPTJUJPOǰTFUǰGPSUIǰCZǰUIFǰ board, by taking the following steps: ǰǰǰǰǰǰ$POTJEFSǰBǰDPNCJOFEǰTVJUBCJMJUZǰPGǰLOPXMFEHF ǰFYQFSJFODFǰBOEǰFYQFSUJTFǰUPǰEFUFSNJOFǰEFTJSFEǰRVBMJųDBUJPOT ǰǰǰǰǰǰǰ"TTFTTǰUIFǰJOEFQFOEFODFǰPGǰFBDIǰDBOEJEBUFǰUPǰTFFǰXIFUIFSǰIFTIFǰJTǰDPNQMFUFMZǰPSǰJODPNQMFUFMZǰRVBMJųFEǰ BTǰBOǰJOEFQFOEFOUǰEJSFDUPS ǰBOEǰUPǰDPOTJEFSǰXIFUIFSǰPSǰOPUǰJUǰJTǰOFDFTTBSZǰUPǰųOEǰBǰOFXǰJOEFQFOEFOUǰEJSFDUPSǰ in the case that the number of independent directors do not reach the numbers as stated in the board’s policy. ǰǰǰĻǰǰ$POTJEFSǰFBDIǰDBOEJEBUFĴTǰQSPNJTJOHǰEFEJDBUJPOǰPGǰUJNF Ļǰǰ4FMFDUǰBOEǰOPNJOBUFǰBǰTVJUBCMFǰDBOEJEBUFǰGPSǰUIFǰCPBSEǰUPǰDPOTJEFSǰBOEǰQSPQPTFǰUIBUǰOPNJOFFǰGPSǰųOBMǰ consideration and appointment by the meeting of the shareholders of the Company. - Determine a method of director selection that suits the Company’s characteristics. ǰǰǰǰǰǰ(PǰUISPVHIǰUIFǰMJTUǰPGǰDBOEJEBUFT ǰBOEǰTFMFDUǰUIFǰCFTUǰPOFǰXIPǰNFFUTǰUIFǰRVBMJųDBUJPOǰSFRVJSFNFOUTǰTFUǰPVU - Conduct a careful check to make sure that the best candidate who will be nominated for the appointment CZǰUIFǰTIBSFIPMEFSTĴǰNFFUJOHǰJTǰEVMZǰRVBMJųFEǰJOǰBDDPSEBODFǰXJUIǰUIFǰSVMFTǰBOEǰSFHVMBUJPOTǰFTUBCMJTIFEǰCZǰUIFǰ authorities. ǰǰǰǰǰ"QQSPBDIǰUIBUǰRVBMJųFEǰDBOEJEBUFǰUPǰNBLFǰTVSFǰUIBUǰIFTIFǰBHSFFTǰUPǰBDDFQUǰUIFǰQPTJUJPOǰBTǰEJSFDUPSǰXIFOǰ he/she is appointed by the shareholders of the Company. ǰǰǰǰǰ1SPQPTFǰIJTIFSǰOBNFǰGPSǰDPOTJEFSBUJPOǰBOEǰBQQSPWBMǰCZǰUIFǰCPBSEǰǰ6QPOǰUIFǰCPBSEĴTǰBQQSPWBM ǰBǰOPUJDFǰPGǰ the meeting of the shareholders of the Company in this regard will be made and sent to the shareholders calling them to meet, discuss and consider whether or not to appoint that nominee .

(b) Develop a model and guidelines on the payment of directors’ remuneration which will be recommended to the Board who will then propose them to the meeting of the shareholders of the Company for approval.

(d) Determine the annual remuneration of directors

(e) Offer new ESOP (or warrants) to directors and employees under diverse conditions that will induce directors and staff members to perform duties with their best effort, add a long-time value to the shareholders, and truly FOBCMFǰUPǰSFUBJOǰFGųDJFOUǰBOEǰDPNQFUFOUǰQFSTPOOFMǰIPXFWFS ǰTVDIǰJODFOUJWFǰTDIFNFǰTIPVMEǰOPUǰDPTUǰUPPǰNVDIǰ and should be fair to the shareholders of the Company.

The Board of Directors' Meeting No. 3/2007 on 26 February 2007 has approved the appointment of the Nomination and Remuneration Committee. And the scope of authority of the Board Nomination and Remuneration Committee.

Executive Committee As at December 31, 2013: The members of Executive Committee are: 1. Mr. Surachai Chetchotisak Chairman 2. Mrs. Pornpan Techarungchaikul Director 3. Mr. Darm Nana Director 4. Mr. Komsan Chetchotisak Director 64 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Responsibilities of the Executive Committee The Board of Directors Meeting No. 1/2003 held on January 28, 2003 and the Board of Directors Meeting No. 5/2005 held on 31 October 2005 had the resolution to determine the scope of Executive Committee’s authority in that &YFDVUJWFǰ$PNNJUUFFǰJTǰBVUIPSJ[FEǰUPǰDPNNJUǰBOZǰBDUTǰOFDFTTBSZǰGPSǰPSǰSFMBUFEǰUPǰUIFǰOPSNBMǰCVTJOFTTǰPQFSBUJPOǰ of the company.

" ǰǰǰ5PǰBQQSPWFǰMPBOTǰPSǰBQQMZǰGPSǰDSFEJUǰGSPNǰųOBODJBMǰJOTUJUVUJPOTǰǰBTǰXFMMǰBTǰBDUJOHǰBTǰTVSFUZǰPSǰNBLJOHǰQBZNFOUTǰ for general activities of the company. The credit limit of each item must be less than 50 million baht or equivalent.

(B) To appoint and remove the company employees who are ranked below Managing Director (currently changed UPǰ$IJFGǰ&YFDVUJWFǰ0GųDFS ǰ

(C) To initiate, suggest and formulate policy for the business direction and business strategy of the company and present it to the Board of Directors.

(D) To form corporate and management structures and Executive Committee. To oversee all aspects of the recruiting, training, employment and removal of company employees.

(E) To formulate business plans and management powers. To approve the annual budget for business operations and expenses. To run the company following the business plan and strategy as well as the policy and business direction presented to the Board of Directors.

(F) To be responsible for other duties assigned by the Board of Directors in each period.

Approval for carrying out the activities mentioned above would not be granted in cases where the Executive $PNNJUUFF ǰPSǰQBSUJFTǰBVUIPSJ[FEǰCZǰUIFǰ&YFDVUJWFǰ$PNNJUUFF ǰJTǰBVUIPSJ[FEǰUPǰBQQSPWFǰBDUJWJUJFTǰUIBUǰNBZǰDPOŴJDUǰ with the company’s interests under the regulations and announcements of the Stock Exchange of Thailand. Exceptions would be made for those activities carried out under policies and regulations approved by the Board of Directors, whereby the Board of Directors has the authority to amend or change the responsibilities of the Executive Committee whenever necessary.

Risk Management Committee "TǰBUǰ%FDFNCFSǰ ǰ ǰUIFǰ3JTLǰ.BOBHFNFOUǰ$PNNJUUFFǰDPOTJTUTǰPGǰǰRVBMJųFEǰQFSTPOT

1. Mrs. Pornpan Techarungchaikul Chairman 2. Mr. Darm Nana Director 3. Mr. Komsan Chetchotisak Director MEDIA REVOLUTIONIST 65

Duties and responsibilities of the Risk Management Committee The Company’s Board of Directors meeting no. 5/2010 on August 16, 2010, has the resolution to appoint the Risk .BOBHFNFOUǰ$PNNJUUFF ǰBOEǰIBTǰBVUIPSJ[FEǰJUTǰTDPQFǰPGǰEVUJFTǰBOEǰSFTQPOTJCJMJUJFTǰBTǰGPMMPXT (a) Consider the policy, framework, and procedure on the risk management which includes giving advice to the Company’s Board of Directors and management team on risk management.

(b) Supervise and support the risk management so that it is according to plan, and results in achievements for the PSHBOJ[BUJPOǰBTǰXFMMǰBTǰJOǰUIFǰQSPKFDUǰMFWFM

D ǰǰ$POTJEFSǰUIFǰ$PNQBOZĴTǰJNQPSUBOUǰSJTLTǰPOǰUIFǰPSHBOJ[BUJPOǰMFWFM ǰBOEǰFWBMVBUFǰUIFǰSJTLǰNBOBHFNFOUǰQSPDFEVSFTǰ to be in accordance with the Company’s strategy and business plan.

(d) Report performance to the Audit Committee and the Company’s Board of Directors.

Good Corporate Governance Committee "TǰBUǰ%FDFNCFSǰ ǰ ǰUIFǰ(PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFFǰDPOTJTUTǰPGǰǰRVBMJųFEǰQFSTPOT

1. Mrs. Pornpan Techarungchaikul Chairman 2. Mr. Darm Nana Director 3. Mr. Komsan Chetchotisak Director

Duties and responsibilities of the Good Corporate Governance Committee The Company’s Board of Directors meeting no. 1/2011 on February 23, 2011, has the resolution to appoint the (PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFF ǰBOEǰIBTǰBVUIPSJ[FEǰJUTǰTDPQFǰPGǰEVUJFTǰBOEǰSFTQPOTJCJMJUJFTǰBTǰGPMMPXT 1. Propose guideline or policy on the good corporate governance to the Audit Committee and the Company’s Board of Directors.

2. Review or improve guideline or policy on the Company’s good corporate governance.

3. Give suggestions on good corporate governance to the Audit Committee and the Company’s Board of Directors.

4. Supervise Directors and the Management team to comply with the good corporate governance’s policy.

Human Development Committee As at December 31, 2013, the members of Human Development Committee are:

1. Mrs. Pornpan Techarungchaikul Chairman 2. Mrs. Napaporn Treepayak Director 3. Mr. Niwes Buakhom Secretary 66 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Responsibilities of Human Development Committee Human Development Committee’s responsibilities are as follows : (A) To present human resource policy and management direction.

(B) To draw techniques and strategies for human resource development.

(D) To consider and make decisions on human resource development issues based on the direction approved by the company’s committee. Management Team As at December 31, 2013, the members of Management Team are as follows :-

ǰǰ.Sǰ4VSBDIBJǰǰ ǰ $IFUDIPUJTBLǰ ǰ ǰ $IJFGǰ&YFDVUJWFǰ0GųDFSǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰ ǰǰ.STǰ1PSOQBOǰǰ ǰ 5FDIBSVOHDIBJLVMǰ ǰ $IJFGǰ0QFSBUJOHǰ0GųDFS ǰǰ.Sǰ%BSNǰǰǰ ǰ /BOBǰ ǰ ǰ ǰ $IJFGǰ'JOBODJBMǰ0GųDFSǰ ǰǰ.Sǰ,PNTBOǰǰ ǰ $IFUDIPUJTBLǰ ǰ ǰ $IJFGǰ$PNNFSDJBMǰ0GųDFS 5. Mr. Danaisidh Peslapunt Senior Vice President 6. Mr. Soopachai Nilawan Senior Vice President 7. Ms. Chutima Tichachart Senior Vice President

3FNBSLǰǰ&YFDVUJWFǰSFGFSTǰUPǰFYFDVUJWFǰBTǰQFSǰEFųOJUJPOǰGSPNǰBOOPVODFNFOUǰPGǰUIFǰ4FDVSJUJFTǰBOEǰ&YDIBOHFǰ$PNNJTTJPOǰ 4&$ ǰOPǰ sor.jor 14/2540

3PMFTǰBOEǰ3FTQPOTJCJMJUJFTǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰ The Board of Directors Meeting No. 1/2003 held on January 28, 2003 and the Board of Directors Meeting No. 5/2005 held on 31 October 2005 had the resolution to determine the scope of Managing Director’s authority in that .BOBHJOHǰ%JSFDUPSǰ QSFTFOUMZǰDBMMFEǰĶ$IJFGǰ&YFDVUJWFǰ0GųDFSķ ǰJTǰBVUIPSJ[FEǰUPǰBQQSPWFEǰDPNNJUǰBOZǰBDUTǰOFDFTTBSZǰ for or related to the normal business operation of the company. The Managing Director (presently called “Chief &YFDVUJWFǰ0GųDFSķ ǰJTǰDPODFSOFEǰXJUIǰUIFǰDPNQBOZǰJOǰHFOFSBMǰBOEǰIBTǰUIFǰBVUIPSJUZǰUPǰDBSSZǰPVUǰBOZǰBDUJWJUZǰUIBUǰJTǰ necessary. The credit limit of each item must be less than 25 million baht or equivalent. However, the Managing %JSFDUPSǰ QSFTFOUMZǰDBMMFEǰĶ$IJFGǰ&YFDVUJWFǰ0GųDFSķ ǰIBTǰOPǰBVUIPSJUZǰUPǰEFBMǰXJUIǰJNQPSUBOUǰBTTFUTǰSFDFJWFEǰPSǰTPMEǰ PVUǰPGǰUIFǰDPNQBOZǰPSǰNBUUFSTǰDPODFSOJOHǰQFSTPOTǰXIPǰNBZǰCFǰJOǰDPOŴJDUǰXJUI ǰPSǰIBWFǰDPOŴJDUǰPGǰJOUFSFTUǰXJUIǰ UIFǰBDUJWJUJFTǰPGǰUIFǰDPNQBOZǰPSǰBGųMJBUFEǰDPNQBOJFTǰ*OǰTVDIǰJOTUBODFT ǰUIFǰ"VEJUǰ$PNNJUUFFǰBOEPSǰUIFǰ#PBSEǰPGǰ Directors, depending on the case, will consider the matter. MEDIA REVOLUTIONIST 67

Company Secretary 5IFǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰBQQPJOUFEǰUIFǰ$IJFGǰ0QFSBUJOHǰ0GųDFSǰUPǰCFǰUIFǰ$PNQBOZǰ4FDSFUBSZǰ5IFǰQSFTFOUǰ Company Secretary is Mrs. PornpanTecharungchaikul. The Company Secretary duty is to ensure that the Company complies with the Good Corporate Governance of the Stock Exchange of Thailand.

Name Mrs. Pornpan Techarungchaikul position Director, Executive Committee, Risk Management Committee Chairman,Good Corporate Governance Committee Chairman, Human Development Committee Chairman and Company Secretary Age 43 Years Education - Master degree (MBA) from Sasin Graduate institute of Business Administration of ǰ ǰ ǰǰǰǰ ǰǰǰ$IVMBMPOHLPSOǰ6OJWFSTJUZ ǰ ǰ ǰ ǰǰ#BDIFMPSǰEFHSFFǰPGǰ4UBUJTUJDTǰ$IVMBMPOHLPSOǰ6OJWFSTJUZ - Executive Development Program 4 (EDP 4) Year 2009 Thai Listed Companies Association Relationship between -None- Management Experience 2004 - present Director RS Public Company Limited 2008 - present Secretary to the Board of Directors and Company Secretary RS Public Company Limited ǰ ǰ ǰ ǰǰQSFTFOUǰǰǰ$IJFGǰ0QFSBUJOHǰ0GųDFSǰǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFE Executive Remuneration Cash Remuneration (A) Directors

Year 2013 List No. Amount of money (Baht) Detail of Remuneration Directors 9 720,000 Fixed remuneration and Meeting allowance Audit Committee 3 1,674,500 Fixed remuneration and Meeting allowance 68 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Detail of Remuneration and Meeting allowance are as follows:

Year 2012 No. Board of Director Fixed remuneration (Baht) Meeting allowance (Baht) 1 Mr. Surachai Chetchotisak - 100,000 2 Mrs. Pornpan Techarungchaikul - 80,000 3 Mr. Darm Nana - 80,000 4 Mr. Danaisidh Peslapunt - 60,000 - 5 Mr. Sutthisak Prasatkarukarn 80,000 6 Mr. Sorat Wanichwarakij - 80,000 7 Mr. Phisit Dachanabhirom - 80,000 8 General Pairoj Panichsamai - 80,000 9 Mr. Witaya Danthamrongkul - 80,000 Total 720,000

/PUFǰ%JSFDUPSǰSFNVOFSBUJPOǰJTǰUIFǰCFOFųUǰQBJEǰUPǰUIFǰDPNQBOZĴTǰEJSFDUPSTǰJOǰBDDPSEBODFǰXJUIǰ4FDUJPOǰǰPGǰUIFǰ1VCMJDǰ$PNQBOZǰ -JNJUFEǰ"DUǰ#&ǰ ǰ FYDMVEJOHǰTBMBSZǰBOEǰSFMFWBOUǰCFOFųUTǰQBJEǰUPǰUIFǰEJSFDUPSTǰXIPǰBMTPǰIPMEǰUIFǰUJUMFǰPGǰUIFǰDPNQBOZĴTǰ executives). There is no remuneration for the directors of subsidiaries.

(B) Executive Directors and Management Team

Year 2013 List No. Amount of money (Baht) Detail of Remuneration Executive Directors 4 - - Management team 7 82.79 Salary/bonus/ other allowance

In 2013, the Company has paid provident fund to 6 Executives at approximate amount of Baht 1.47 million.

Other Remuneration -Nil-

Personnel The number of employees in the company and its subsidiaries as of 31 December 2013 is 1,182 persons of which DBUFHPSJ[FEǰJOUPǰ34ǰFNQMPZFFTǰPGǰǰQFSTPOTǰBOEǰTVCTJEJBSJFTĴǰFNQMPZFFTǰPGǰǰQFSTPOT5IFǰUPUBMǰSFXBSETǰPGǰ company staff as of the year 2013 amounted to Baht 579.72 million, paid in the form of salaries, overtime and welfare payments, bonus and provident fund, as well as provident fund for employees totaling about Baht 13 Million. MEDIA REVOLUTIONIST 69

Human Resources Development Policy ǰǰ5IFǰ$PNQBOZǰSFBMJ[FTǰUIFǰJNQPSUBODFǰPGǰFNQMPZFFTǰBTǰIVNBOǰDBQJUBM ǰUIFǰNPTUǰWBMVBCMFǰGBDUPSǰUIBUǰJTǰ JOTUSVNFOUBMǰJOǰTUFFSJOHǰUIFǰPSHBOJ[BUJPOǰUPXBSETǰHSPXUIǰPOǰBǰTVTUBJOBCMFǰCBTJTǰ)FODF ǰBOOVBMǰPQFSBUJPOBMǰQMBOǰ BOEǰCVEHFUǰIBWFǰCFFOǰDMFBSMZǰTQFDJųFEǰBOEǰBSSBOHFEǰBDDPSEJOHMZǰ)VNBOǰSFTPVSDFTǰEFWFMPQNFOUǰJTǰEJWJEFEǰJOUPǰ UISFFǰMFWFMTǰJFǰ0SHBOJ[BUJPOǰ%FWFMPQNFOU ǰ$BSFFSǰ%FWFMPQNFOUǰBOEǰ5SBJOJOHǰ%FWFMPQNFOU

ǰǰ0SHBOJ[BUJPOǰEFWFMPQNFOUǰIBTǰQSPNPUFEǰUIFǰDSFBUJPOǰPGǰDPSQPSBUFǰDVMUVSFǰXJUIJOǰDPNQBOJFTǰVOEFSǰUIFǰ 34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰTJODFǰPSJFOUBUJPOǰPGǰOFXǰFNQMPZFFT ǰBOEǰUISPVHIǰPUIFSǰZFBSSPVOEǰųFMEǰUSJQǰBDUJWJUJFTǰ such as RS Team Building for employees, and RS Team Leader for Executive level throughout the year.

ǰǰ&NQMPZFFTĴǰ$BSFFSǰ%FWFMPQNFOUǰUIBUǰEFųOFTǰQSPHSFTTJWFǰDBSFFSǰQBUIǰBOEǰTUJQVMBUFTǰUIFǰQSPNPUJPOǰ path which includes stipulation on training duration on management courses for group to be promoted to each NBOBHFNFOUǰMFWFMǰUISPVHIǰ.BOBHFNFOUǰF-FBSOJOHǰ5IJTǰUSBJOJOHǰDPVSTFǰBOEǰUIFǰPOMJOFǰUFTUǰPOǰPSHBOJ[BUJPOĴTǰ NBOBHFNFOUǰDPNQFUFODZǰGPSǰFYFDVUJWFǰMFWFMǰBOEǰNJEEMFǰNBOBHFSTǰǰ*OǰǰJUǰXBTǰPSHBOJ[FEǰUISPVHIǰUIFǰQSPHSBNǰ for 1 generation.

1.3 Training Development is stipulated by using the Competency Base Training together with research on the Training Need with development methods on both Public Training, and In-House Training. These trainings cover on the Knowledge Development, Attitude Development, and Skill Development such as Sale course topic concerning Sale Management, Presentation for Success, Brand Image and Personality Development in Sales, etc. The Company BMTPǰPSHBOJ[FTǰOPOUSBJOJOHǰBDUJWJUJFTǰBOEǰLOPXMFEHFTIBSJOHǰQSPHSBNTǰJOǰXIJDIǰFNQMPZFFTǰBSFǰBMMPXFEǰUPǰBUUFOEǰJGǰ they are interested which are in the form of special lectures by successful executives and speakers from external PSHBOJ[BUJPOTǰTVDIǰBTǰTQFDJBMǰMFDUVSFǰDPODFSOJOHǰLOPXMFEHFǰPOǰSFWFOVFǰUBY ǰ5IFǰ5BMLǰ4IPXǰLOPXMFEHFǰPGǰUIFǰ JOWFTUNFOUǰĶ6TFEǰ.POFZǰMJLFǰBǰTMBWFķǰ"OEǰUIFǰLOPXMFEHFǰPGǰUIFǰ-5'ǰǰ3.' ǰFUDǰǰǰ

2. The Company indicates the importance in continuously building employee engagement through diverse activities such as the New Year party and The Futsal competition to make relationship of the various departments XJUIJOǰUIFǰPSHBOJ[BUJPO ǰFUD

ǰǰ5IFǰ$PNQBOZǰBMTPǰSFBMJ[FTǰJOǰCVJMEJOHǰBQQSFDJBUJPOǰUPXBSETǰDPSQPSBUFǰTPDJBMǰSFTQPOTJCJMJUZǰ $43 ǰUPǰFNQMPZFFT ǰ and to be continuously in accordance with the corporate vision by promoting and arranging for activities such as FOFSHZǰTBWJOHǰBDUJWJUZǰVOEFSǰUIFǰDBNQBJHOǰĶ0GųDFǰ/PǰǰBDUJWJUZǰPOǰEPOBUJOHǰCMPPEǰPOǰUIFǰPDDBTJPOǰPGǰ)FSǰ.BKFTUZǰ the Queen’s Birthday on Mother Day continuous for the 5th year running, CSR Day activity within the Company; activity for RS employees on charity run in the 26th Standard Charter Bangkok Marathon; and internal training for “CSR Branding for Sustainability”, etc.

ǰǰ.PSFPWFS ǰUIFǰ$PNQBOZǰBMTPǰFNQIBTJ[FTǰPOǰTBGFUZǰBOEǰIFBMUIǰJOǰUIFǰPGųDFǰCZǰDPNNVOJDBUJOHǰLOPXMFEHF ǰBOEǰ OFXTǰXJUIJOǰUIFǰPSHBOJ[BUJPOǰUISPVHIǰWBSJPVTǰNFEJB ǰBOEǰPSHBOJ[FTǰUSBJOJOHǰBDUJWJUJFTǰPOǰųSFǰFYUJOHVJTIJOHǰBOEǰųSFǰ escaping methods. 70 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 11 Corporate Governance MEDIA REVOLUTIONIST 71

Corporate Governance 5IFǰ$PNQBOZǰIBTǰTUJQVMBUFEǰJUTǰQPMJDZǰPOǰDPSQPSBUFǰHPWFSOBODFǰCZǰFNQIBTJ[JOHǰPOǰUIFǰDPOUSPMǰBOEǰJOUFSOBMǰ BVEJUǰTZTUFN ǰBOEǰDPSQPSBUFǰHPWFSOBODFǰPGǰ.BOBHFNFOUǰUPǰFGųDJFOUMZǰGPMMPXJOHǰJUTǰQPMJDZǰ5IJTǰJTǰGPSǰMPOHǰUFSNǰ CFOFųUTǰPGǰTIBSFIPMEFST ǰJODMVEJOHǰUSBOTQBSFODZǰPOǰCVTJOFTTǰPQFSBUJPOT ǰJOGPSNBUJPOǰEJTDMPTVSF ǰBOEǰXJUIǰQSPQFSǰ risk management as well as the Social and Environment Responsibility for sustaining development.

In 2013, the Company has been continuously granted the Excellent CG Scoring from Thai Listed Companies Good Corporate Governance Survey Year 2013.

4VNNBSJ[BUJPOǰPOǰDPSQPSBUFǰHPWFSOBODFǰQSBDUJDFTǰJOǰǰJTǰBTǰGPMMPXT

Good Corporate Governance Policy The Company’s Board of Directors stipulates policy on good corporate governance in a written format, and considers reviewing the good corporate governance policy and code of conduct manual for the Company Group. Follow up on evaluation of policy compliance is set to at least once a year. The Company publishes manuals to Directors and employees for references and practices and announced in the Company’s intranet. The Company’s Board of Directors Meeting No. 1/2013 on February 26, 2013 reconsidered, improved, and had its resolution to approve the good corporate governance policy and code of conduct manual for the Company Group, and followed up on evaluation of policy compliance.

Moreover, the Company has comply with the good corporate governance policy for listed companies in the Stock Exchange of Thailand as states in the 5 following guidelines: Ļǰ 4IBSFIPMEFSǰSJHIUT Ļǰ &RVBMǰ3JHIUǰUPǰ4IBSFIPMEFST Ļǰ 3JHIUTǰPGǰ4UBLFIPMEFST Ļǰ *OGPSNBUJPOǰ%JTDMPTVSFǰBOEǰ5SBOTQBSFODZ Ļǰ 3FTQPOTJCJMJUJFTǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰBOEǰ4VC$PNNJUUFFT Shareholder Rights The Company stresses the importance of respecting the shareholders’ right by following regulations as stipulated by law. In 2013, the Company had ordinary shareholders’ meeting on April 19, 2013. All Directors attended the meetings (list of the Company’s Board of Directors attendances could be checked at the minutes of the shareholders’ meeting).

5IFǰ$PNQBOZǰIBTǰQPMJDZǰPOǰFRVBMǰUSFBUNFOUǰPGǰTIBSFIPMEFSTǰCZǰSFBMJ[JOHǰPOǰUIFǰJNQPSUBODFǰPGǰTIBSFIPMEFSTĴǰ SJHIUǰPOǰTVGųDJFOUǰBOEǰUJNFMZǰJOGPSNBUJPOǰEJTDMPTVSFǰ$PODFSOJOHǰTIBSFIPMEFSTĴǰNFFUJOH ǰUIFǰ$PNQBOZǰXJMMǰJTTVFǰ notice of meeting which includes details on different meeting’s agendas at least 7 days prior to the meeting date as stipulated by law. 72 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

In 2013, Thailand Securities Depository Co., Ltd., which was the Company’s registrar, issued notice of meeting to shareholders at least 7 days in advanced, or 14 days as stipulated by law.

In 2013, the Company had issued notice of meeting which included details on different meeting’s agendas prior to the meeting date as stipulated by law, and each agenda contained principles, and reasons and suggestions of the Board of Directors. Moreover, the Company also published shareholders’ notice of meeting, and documents for the meeting in Thai and English language at the Company’s website on http://www.rs.co.th/corporate/th/ meeting.htm, and http://www.rs.co.th/corporate/eng/meeting.htm , at least 30 days before the meeting date and the Annual Report was posted in the website at least 7 days before the meeting date, as to facilitate rapid access for shareholders. Minutes of the meetings in 2013 were posted in the website 14 days afterwards. Prior to the TUBSUǰPGǰNFFUJOH ǰ$IBJSNBOǰPGǰUIFǰNFFUJOHǰIBEǰBVUIPSJ[FEǰUIFǰ$PNQBOZĴTǰ4FDSFUBSZǰUPǰFYQMBJOǰWPUJOHǰQSPDFEVSFǰ to the meeting, and during the meeting, the Chairman gave equal opportunity to shareholders in asking additional questions, and making suggestions prior to vote casting in each agenda. Support was also given in using voting paper in case of important agenda for transparency and accountability. Minute of the meeting was written correctly BOEǰDPNQMFUFMZǰXJUIJOǰUIFǰTQFDJųDǰUJNFGSBNFǰBTǰTUJQVMBUFEǰCZǰMBX ǰBOEǰIBEǰHPPEǰųMJOHǰTZTUFNǰGPSǰTIBSFIPMEFSTĴǰ checking.

In 2013, the Company gave shareholders’ right much more than stipulated by law such as publishing important and updated information through its websites, and not curtailing the shareholders’ right on the Company’s information that had to be disclosed by regulations. Concerning the meeting, no additional meeting agenda, or changing PGǰJNQPSUBOUǰJOGPSNBUJPOǰXPVMEǰCFǰDPOEVDUFEǰXJUIPVUǰQSJPSǰOPUJųDBUJPOǰUPǰTIBSFIPMEFST ǰJODMVEJOHǰBEEJUJPOBMǰ important information would not be distributed abruptly in the meeting, and not limiting shareholders’ right to come in late for the meeting. During the meeting, the Chairman opened equal opportunity to shareholders to ask questions, giving ideas, and making suggestions on operating results of the Company. Moreover, shareholders were given opportunity to send in their questions in advanced of the meeting date through the Company’s websites, or by mail to the Board of Directors. Thus, rights given to shareholders, and supporting shareholders to exercise their rights were in accordance with good corporate governance policy.

Equal Right to Shareholders For shareholders who cannot attend the meeting, the Company proposes proxies to be given to the Independent Director, who is Chairman of the Audit Committee, to vote on their behalves in the meeting. In the 2013 shareholders meeting, there were 113 shareholders who gave proxy to Chairman of the Audit Committee .

On September 26, 2013, the Company published information through its websites for minority shareholders to propose agenda for the ordinary shareholders’ meeting. This included clear cut regulations in advanced for consideration on additional agenda for minority shareholders to make proposal. The Company also regulated procedures for minority shareholders to propose person’s names for consideration as Director, and including BTTJTUJOHǰJOGPSNBUJPOǰPOǰRVBMJųDBUJPOT ǰBOEǰBHSFFNFOUǰPGǰUIFǰQSPQPTFEǰQFSTPOǰ)PXFWFS ǰOPǰTIBSFIPMEFSǰQSPQPTFEǰ on new agenda, and person’s name for Director. MEDIA REVOLUTIONIST 73

The Company has established the measure in a written statement to prevent directors, executives, staff members and employees from abusing insider information in the interests of their own or their related parties. By this measure, the Company’s directors, executives, staff members and employees are required to report a transaction that may DBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTUǰCFUXFFOǰUIFǰPSHBOJ[BUJPOǰBOEǰUIFNǰPSǰUIFJSǰSFMBUFEǰQBSUJFTǰWJBǰUIFǰEFTJHOBUFEǰMBXǰPGųDFǰ UPǰTDSFFOǰBOEǰGPSXBSEǰTVDIǰSFQPSUǰDPNQMFUFEǰXJUIǰJUTǰDPNNFOUTǰUPǰUIFǰ#PBSE ǰBOEǰUIFǰ#PBSEǰJTǰGVMMZǰBVUIPSJ[FEǰUPǰ NBLFǰBǰEFDJTJPOǰPOǰBOZǰUSBOTBDUJPO ǰXIJDIǰNBZǰDBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTU ǰGPSǰUIFǰ$PNQBOZĴTǰPWFSBMMǰCFOFųUǰǰǰǰǰ5IFǰ Company’s directors and/or executives with their interests in any transactions shall be banned from participating in a decision making process on those transactions, as detailed in the topic of insider information protection; moreover, related party transactions shall be made in accordance with relevant requirements established by Stock Exchange of Thailand, as detailed in the topic of precautionary measures or procedures for the approval of related party transactions. The certain policy has been implemented since the year 2008 for banning directors and top FYFDVUJWFT ǰGSPNǰCVZJOHǰBOEǰTFMMJOHǰUIFJSǰTIBSFTǰJOǰUIFǰ$PNQBOZǰUISFFǰXFFLTǰCFGPSFǰUIFǰQVCMJDBUJPOǰPGǰųOBODJBMǰ statements and two days after that.

The Company has regulation in prohibiting the using of opportunity or information by Director, Executive, or FNQMPZFFǰGPSǰUIFJSǰPXOǰCFOFųUT ǰPSǰDPOEVDUJOHǰCVTJOFTTǰDPNQFUJUJPOǰXJUIǰUIFǰ$PNQBOZ ǰPSǰXJUIǰSFMBUFEǰCVTJOFTTǰ This includes using of inside information for the Company’s stock trading. All regulations have been stated in the code of conduct manual, and discloses in the topic of using of internal information.

3FNBSLǰǰ ǰNFBOTǰ&YFDVUJWFǰBTǰQFSǰEFųOJUJPOǰPGǰUIFǰ4FDVSJUJFTǰBOEǰ&YDIBOHFǰ$PNNJTTJPOǰXIPǰJTǰSFTQPOTJCMFǰGPSǰDIBOHFTǰJOǰ shareholding as stipulated by law. Rights of Stakeholders 5IFǰ$PNQBOZǰSFDPHOJ[FTǰUIFǰJNQPSUBODFǰPGǰSJHIUTǰGPSǰBMMǰHSPVQTǰPGǰTUBLFIPMEFSTǰXIFUIFSǰGSPNǰJOUFSOBMǰTUBLFIPMEFSTǰ such as employees, the Company’s Management, and its subsidiaries, or external stakeholders such as competitors, DSFEJUPST ǰ(PWFSONFOUǰBHFODJFT ǰBOEǰPUIFSǰSFMBUFEǰQBSUJFTǰ5IFǰ$PNQBOZǰSFBMJ[FTǰUIFǰTVQQPSUJOHǰQSFTTVSFǰGSPNǰ TUBLFIPMEFSTǰFTQFDJBMMZǰGSPNǰDPNNVOJUJFTǰBOEǰQVCMJD ǰJOǰXIJDIǰJUǰBMXBZTǰHJWFTǰTJHOJųDBODFǰUPǰUIFǰDBVTFTǰ FYBNQMFǰ can be seen from the Role and Social Responsibility and Human Resources Development Policy). Regulations and procedures are in written format, including rules on disciplinary punishment, so that there will be guideline procedures for related persons i.e. Directors, Management and employees of RS Group etc. to follow when performing duties for the Company with honesty and ethics towards the Company and groups of stakeholders. Details in the Code of Conduct manual which covers business and employee’s code of conduct are as follows:-

Responsibilities toward social and environment 5IFǰ$PNQBOZǰIBTǰUIFǰQPMJDZǰUPǰDPOEVDUǰJUTǰCVTJOFTTǰGPSǰUIFǰCFOFųUTǰPGǰUIFǰFDPOPNZ ǰTPDJFUZ ǰBOEǰFOWJSPONFOUǰ by considering its duties and responsibilities towards the nation, society and environment. Businesses must be operated and controlled completely under the laws and regulations, as well as determinations to press on developing trends for social quality and environment internally or cooperation with Government agencies and communities. Responsibilities toward social and environment must be whole heartedly and consistently promoted UPǰBMMǰMFWFMTǰPGǰFNQMPZFFTǰPOǰCFDPNJOHǰHPPEǰDJUJ[FOTǰXIPǰNBLFǰCFOFųDJBMǰDPOUSJCVUJPOTǰUPXBSEǰDPNNVOJUJFTǰBOEǰ 74 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

societies. Employees must also be supported to jointly participate in constantly creating activities for communities and societies in order to create good corporate culture in the future. These have to be reviewed, evaluated, and followed up consistently on progress of the company’s operations to ensure that policies on social and environment have been executed as planned (example can be seen from the Role and Social Responsibility and Human Resources Development Policy).

Customer The Company is determined to distribute quality products and provide quality services to its customers, as well as having the service units to take care, explain all enquiries, and recommend solutions on problems to customers.

Shareholders 5IFǰ$PNQBOZǰJTǰSVOǰXJUIǰBǰHPPEǰBOEǰFGųDJFOUǰFYQFSUJTFǰ5IFǰDVSSFOUǰBOEǰGVUVSFǰSJTLǰJTǰDBSFGVMMZǰBTTFTTFEǰGPSǰUIFǰ CFOFųUǰPGǰTIBSFIPMEFST ǰBOEǰDPOUSPMMFEǰUPǰCFǰDFSUBJOǰUIBUǰUIFǰPQFSBUJPOBMǰSFTVMUTǰBOEǰųOBODJBMǰTJUVBUJPOTǰPGǰUIFǰ company as well as information to shareholders are completely reported.

Employee The Company considers employees its precious assets and acknowledges the value of employees. The appropriate welfare and remuneration are arranged in line with the knowledge, ability, responsibility and performance of each FNQMPZFFǰ34ǰHSPVQǰBMTPǰSFBMJ[FTǰUIFǰJNQPSUBODFǰJOǰIFBMUIDBSF ǰTBGFUZ ǰBOEǰXPSLJOHǰFOWJSPONFOUǰBTǰTBGFǰQSFDBVUJPOǰ against life and property of its employees, and follows on the labor laws’ regulations. Hence, the Company has arranged for health check, life and health insurances for employees, and consistently checks safety in the work place too.

The Company supports knowledge training for its employees, Directors and executives. (Examples are under topics Social Role and Responsibilities, and Human Resources Development Policy)

Trading Partner and Creditor The Company adheres to honesty and justice towards its trading partners by taking into consideration for the best CFOFųUTǰUPǰUIFǰ$PNQBOZ ǰBOEǰCBTFTǰPOǰKVTUJųFEǰSFNVOFSBUJPOTǰPOǰCPUIǰTJEFT ǰBOEǰBWPJETǰCJBTǰPSǰBOZǰDJSDVNTUBODFTǰ UIBUǰHJWFǰSJTFǰUPǰUIFǰDPOŴJDUǰPGǰJOUFSFTUTǰBOEǰVQIPMETǰBOEǰDPNQMJFTǰXJUIǰDPOUSBDUT ǰUFSNTǰPGǰBHSFFNFOU ǰBOEǰ obligations towards trading partners and creditors. This also includes anti-corruption and anti-bribery payment to PCUBJOǰCFOFųUǰGPSǰUIFǰ$PNQBOZĴTǰCVTJOFTTǰǰ

Competitor The Company supports free and fair trade competition as well as treating competitors professionally.

Virtue The Company is engrossed in doing the rightful things and performing its duties with honesty and straightforwardness in accordance with legislations and regulations. This conduct is applied to any activities and decision-making. The DPNQBOZǰPQFSBUFTǰJUTǰCVTJOFTTǰXJUIǰIPOFTUZǰBOEǰUBLFTǰJOUPǰBDDPVOUǰUIFǰJOŴVFODJOHǰSJTLTǰ MEDIA REVOLUTIONIST 75

Equality and Human Rights for All Parties Concerned The Company neither hinders or withholds the privileges from, nor discriminates against any persons who are different in races, nationalities, religious, genders, age, or education, including non-involvement on any human rights infringement.

The Company’s Board of Directors reviews and makes improvement on Code of Conduct manual of RS Group at least once a year. In 2013, the Company’s Board of Directors meeting No. 1/2013, has reviewed, improved and approved RS Group’s Code of Conduct manual, and publishes in the Company’s website. It includes information on new employee’s training for all employees’ acknowledgement, and controlling process for strict compliance on the Code of Conduct.

The Company has had the policy that directors, executives and staff members at all levels are required to strictly observe and follow the best practices described in the Group’s ethics handbook. In the past year, the $PNQBOZǰBOEǰUIFǰTVCTJEJBSJFTǰIBEǰOPǰMFHBMǰEJTQVUFǰUIBUǰTJHOJųDBOUMZǰBGGFDUFEǰUIFǰ$PNQBOZĴTǰCVTJOFTTǰPSǰQPTFEǰ negative effects on the Group’s assets of which its overall value, as at 31 December 2013, was higher than 5% of shareholders’ equity. The Company and the subsidiaries had no legal dispute arisen from an out-of-the-ordinary course of business of the Group either.

The Company has anticipated in sharing the development mechanism with stakeholders in strengthening operating results of the Company. This is to build business security with information transparency, listening to comments, DPNQMBJOUT ǰPSǰTVHHFTUJPOT ǰFUDǰ"DUJPOǰUIBUǰNBZǰMFBEǰUPǰGSBVEǰPSǰTVTQFDUFEǰCFIBWJPSǰXJUIJOǰUIFǰPSHBOJ[BUJPOǰFJUIFSǰ from employee or from stakeholder can be reported directly to the Management, Internal Audit unit, Investor Relation unit, Company Secretary or Audit Committee as to pass to the Board of Directors through website http:// www.rs.co.th/investor.html or through telephone numbers 0-2511-0911 and 0-2511-0555 ext. 1503 or to the stated units above. All information will be collected and checked through the Company’s stipulated process, and will be reported to the Board of Directors.

$PNQMBJOUǰDPODFSOJOHǰųOBODJBMǰBOEǰBDDPVOUJOHǰSFQPSUT ǰJOUFSOBMǰDPOUSPM ǰSJTLǰNBOBHFNFOU ǰDPNQMJBODFǰXJUIǰMBXǰ BOEǰDPEFǰPGǰDPOEVDUǰDBOǰCFǰEPOFǰUISPVHIǰUIFǰ$PNQBOZĴTǰTFDSFUBSZǰXIPǰSFDFJWFTǰBOEǰTVNNBSJ[FTǰBMMǰUPQJDT ǰBOEǰ quarterly submits to the Audit Committee, and Board of Directors. The Company gives importance to the secrecy PGǰJOGPSNBUJPOǰSFDFJWFEǰJOǰPSEFSǰUPǰCVJMEǰDPOųEFODFǰUPǰTFOEFS ǰBOEǰDPNQMBJOUǰXJMMǰPOMZǰCFǰLOPXOǰUPǰBTTJHOFEǰBOEǰ related persons.

Information Disclosure and Transparency 5IFǰ$PNQBOZǰHJWFTǰUIFǰJNQPSUBODFǰUPǰFGųDJFOUǰJOUFSOBMǰDPOUSPMǰTZTUFNǰPOǰUIFǰ.BOBHFNFOUǰBOEǰPQFSBUJPOBMǰMFWFMT ǰ CZǰDMFBSMZǰTUJQVMBUFEǰUIFǰ.BOBHFNFOUĴTǰCVTJOFTTǰBVUIPSJ[BUJPOTǰ"TTFUTĴǰVTBHFTǰBSFǰDPOUSPMMFE ǰBOEǰSFTQPOTJCJMJUJFTǰ of operator, controller, and evaluator are separated from each other to create suitable check and balance system. .PSFPWFS ǰUIFSFǰJTǰJOUFSOBMǰDPOUSPMǰPOǰUIFǰųOBODJBMǰTZTUFNǰXJUIǰųOBODJBMǰSFQPSUǰTZTUFNǰSFQPSUJOHǰEJSFDUMZǰUPǰUIFǰ responsible management unit. 76 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

The Company’s internal control unit reports directly to the Audit Committee to be certain that the main operations BOEǰJNQPSUBOUǰųOBODJBMǰBDUJWJUJFTǰQSPDFFEǰFGųDJFOUMZǰXJUIJOǰUIFǰEJSFDUFEǰHVJEFMJOFTǰ5IFǰ$PNQBOZǰIBTǰJUTǰQPMJDZǰPOǰ Compliance Control in correspondence with the concerned law and related regulations.

Sub - Committees The Company’s Board of Directors appoints the Sub - Committees to make details screening by regulating their responsibilities and scope of duties within each committee.

Most members of the Sub - Committees are Independent Directors except the Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee and the Chairman of the Board will not hold positions as member in all committees. Moreover, it also regulates Independent Directors as Chairman of each committee with exception in the Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee. At present, the Company has 6 Sub - Committees of the Audit Committee, Nomination and Remuneration Committee, Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee.

Details concerning the member’ names, duties, and responsibilities are in topic “Shareholding Structure and Management”.

Duties of the Board of Directors and Sub-Committees The Company’s Board of Directors appoints sub-committees in order to assist on corporate governance as follows:-

Ļǰǰǰ"VEJUǰ$PNNJUUFFǰIBTǰEVSBUJPOǰPGǰǰZFBST ǰBOEǰDPOTJTUTǰPGǰǰ*OEFQFOEFOUǰ%JSFDUPSTǰ/BNFTǰBOEǰEVUJFTǰPGǰUIFǰ"VEJUǰ Committee are listed in topic “Shareholding Structure and Management”.

The Company’s Board of Directors is in agreement and appoints Mr. Phisit Dachanabhirom, the Independent %JSFDUPS ǰXIPǰIBTǰWBTUǰLOPXMFEHFǰBOEǰFYQFSJFODFTǰJOǰųOBODJBMǰBOEǰBDDPVOUJOHǰųFME ǰUPǰCFDPNFǰ$IBJSNBOǰPGǰUIFǰ Audit Committee.

In 2013, the Audit Committee had 4 meetings in which all members attended all meetings, and consistently reported their operating results to the Company’s Board of Directors. There was one meeting that the Audit Committee met privately with the external auditor without the management team being present.

Ļǰǰǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFF The Company’s Board of Directors meeting No. 3/2007, on February 26, 2007, has appointed the Nomination and 3FNVOFSBUJPOǰ$PNNJUUFF ǰJUTǰTDPQFǰPGǰBVUIPSJUZ ǰBOEǰSFNVOFSBUJPOǰ5IFǰDPNNJUUFFǰDPOTJTUTǰPGǰǰRVBMJųFEǰQFSTPOTǰ which has 3 Independent Directors in which one of them is the Chairman of the Nomination and Remuneration Committee, the committee has 3 years duration (details in the “Shareholding Structure and Management”)

*In 2013, the Nomination and Remuneration Committee consisted of 3 members in which all of them were Independent Directors. MEDIA REVOLUTIONIST 77

In 2012, the committee had 2 meetings in which all members attended all meetings. The committee consistently reported their operating results to the Company’s Board of Directors.

Details of important performances in 2012 could be summarized as follows:- ǰ ǰǰ$POTJEFSFEǰUIFǰOPNJOBUJPOǰBOEǰTFMFDUJPOǰPGǰRVBMJųFEǰBOEǰTVJUBCMFǰQFSTPOǰBTǰSFQMBDFNFOUǰGPSǰ#PBSEǰPGǰ Directors retired member. 2. Considered, reviewed and approved the charter of the Nomination and Remuneration Committee. 3. Considered and reviewed the appropriateness of the pattern and criteria of the remuneration. 4. Reviewed the annual Directors’ remuneration. ǰ ǰǰ$POTJEFSFEǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰFWBMVBUJPOǰDSJUFSJB 6. Evaluate the performance of the Nomination and Remuneration Committee in 2013 7. Reported the performances of the Nomination and Remuneration Committee to the Board of Directors on regular basis.

The Nomination and Remuneration Committee commented that the stated items were suitable to the utmost MPOHUFSNǰCFOFųUǰGPSǰUIFǰ$PNQBOZ ǰ4IBSFIPMEFSTǰBOEǰ4UBLFIPMEFST

Ļǰǰǰ5IFǰ&YFDVUJWFǰ$PNNJUUFFǰDPOTJTUTǰPGǰǰRVBMJųFEǰQFSTPOT ǰBOEǰUIFJSǰOBNFTǰBSFǰMJTUFEǰJOǰUIFǰĶ4IBSFIPMEJOHǰ Structure and Management” topic.

In 2012, the Executive Committee had total 12 meetings.

Ļǰǰǰ3JTLǰ.BOBHFNFOUǰ$PNNJUUFF 5IFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰNFFUJOHǰ/PǰǰPOǰ"VHVTUǰ ǰǰIBEǰUIFǰSFTPMVUJPOǰUPǰBQQPJOU ǰBVUIPSJ[Fǰ the scope of responsibilities and consider remuneration of the Risk Management Committee. The Committee DPOTJTUFEǰPGǰǰRVBMJųFEǰQFSTPOTǰXJUIǰǰZFBSTǰEVSBUJPOǰ %FUBJMTǰBSFǰVOEFSǰUIFǰ4IBSFIPMEJOHǰ4USVDUVSFǰBOEǰ.BOBHFNFOU

In 2012, the Company’s Risk Management Committee had 1 meeting which was to plan, reviewing the system, or FWBMVBUFǰFGųDJFODZǰPGǰUIFǰSJTLǰNBOBHFNFOU

Ļǰǰǰ(PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFF The Company’s Board of Directors meeting No. 1/2011 on February 23, 2011 had the resolution to appoint, BVUIPSJ[FǰUIFǰTDPQFǰPGǰSFTQPOTJCJMJUJFTǰBOEǰDPOTJEFSǰSFNVOFSBUJPOǰPGǰUIFǰ(PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFFǰ 5IFǰ$PNNJUUFFǰDPOTJTUFEǰPGǰǰRVBMJųFEǰQFSTPOTǰXJUIǰǰZFBSTǰEVSBUJPOǰ %FUBJMTǰBSFǰVOEFSǰUIFǰ4IBSFIPMEJOHǰ4USVDUVSFǰ and Management).

In February 2013, Good Corporate Governance Committee has reviewed and improved the Good Corporate Governance Policy and Code of Conduct. The Committee also followed up the compliance of such policies.

Ļǰǰǰ5IFǰ)VNBOǰ%FWFMPQNFOUǰ$PNNJUUFFǰDPOTJTUTǰPGǰǰRVBMJųFEǰQFSTPOT ǰBOEǰUIFJSǰOBNFTǰBOEǰSFTQPOTJCJMJUJFTǰ are listed in the “Shareholding Structure and Management” topic. 78 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Company Secretary 5IFǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰBQQPJOUFEǰUIFǰ$IJFGǰ0QFSBUJOHǰ0GųDFSǰUPǰCFǰUIFǰ$PNQBOZǰ4FDSFUBSZǰ5IFǰQSFTFOUǰ Company Secretary is Mrs. Pornpan Techarungchaikul. The Company Secretary duty is to ensure that the Company complies with the Good Corporate Governance of the Stock Exchange of Thailand. The major role and duty of the Company Secretary are as following:-

Ļǰǰǰ"EWJDFǰUIFǰMFHBM ǰBDDPVOUJOHǰBOEǰUBYǰJTTVFǰBOEǰOFDFTTBSZǰSFHVMBUJPOTǰUPǰUIFǰ#PBSEǰPGǰ%JSFDUPST Ļǰǰǰ0WFSTFFǰUIFǰ#PBSEǰPGǰ%JSFDUPSTĴǰBDUJWJUJFT Ļǰǰǰ$PPSEJOBUFǰUIFǰDPODFSOFEǰQBSUZǰBTǰUPǰFOTVSFǰUIFǰJNQMFNFOUBUJPOǰPGǰUIFǰSFTPMVUJPOTǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPST Ļǰǰǰ'VODUJPOJOHǰJOWFTUPSǰSFMBUJPO ǰDPPSEJOBUFǰBOEǰDPNNVOJDBUFǰSFHVMBUPSTǰTVDIǰBTǰUIFǰ4FDVSJUJFTǰBOEǰ&YDIBOHFǰ Commission and the Stock Exchange of Thailand etc.

The Company secretary has knowledge in both the accounting and legal aspect, however, the Company also promotes people who support the work of the Company secretary and the Company’s Board of Directors to BUUFOEǰUIFǰĶ$PNQBOZǰ4FDSFUBSZǰ1SPHSBNķǰ $41 ǰPGǰUIFǰ5IBJǰ*OTUJUVUFǰPGǰ%JSFDUPSTǰ *0% ǰ.PSFPWFS ǰUIFǰMFHBMǰPGųDFǰ has been assigned by the Company to help with the works of the Board of Directors to be in accordance with rules, SFHVMBUJPOT ǰPSǰMBXǰCVUǰIBTǰOPUǰCFFOǰFTUBCMJTIFEǰBTǰBǰTQFDJųDǰTVQFSWJTPSZǰPQFSBUJPOBMǰVOJU

Director Meeting The Director meetings are arranged at least quarterly and extraordinary meetings in between as deemed necessary. All meetings have apparently set-out agenda and planned meeting date and are intended to consistently monitor company’s performance. In case that the Company does not have a monthly meeting, the Company has the policy to send the monthly operational report to the Board of Directors, so that the Board of Directors can supervise, and control management’s operations consistently and effectively. Invitation, agenda and information hand-outs BSFǰEVMZǰEJTUSJCVUFEǰǰEBZTǰQSJPSǰUPǰUIFǰNFFUJOHǰTPǰEJSFDUPSTǰIBWFǰBǰDIBODFǰUPǰGBNJMJBSJ[FǰUIFNTFMWFTǰUPǰUIFǰJTTVFT

$IBJSNBOǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰBOEǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰNBLFǰEFDJTJPOǰPOǰBHFOEBTǰGPSǰUIFǰ#PBSEǰPGǰ %JSFDUPSTĴǰNFFUJOHǰXJUIǰFNQIBTJ[JOHǰUIBUǰJNQPSUBOUǰTVCKFDUTǰIBWFǰUPǰCFǰJOǰUIFǰNFFUJOHǰBHFOEBTǰ%JSFDUPSTǰDBOǰ GSFFMZǰTVCNJUǰBHFOEBǰBOEǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰDBOǰBDDFTTǰOFDFTTBSZǰJOGPSNBUJPOǰGSPNǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFS

*OEFQFOEFOUǰ%JSFDUPSTǰ"VEJUǰ$PNNJUUFFǰ UIFǰEFųOJUJPOǰBOEǰRVBMJųDBUJPOǰTIPXOǰJOǰ.BOBHFNFOUǰ4FDUJPO ǰIBWFǰ attended all meetings. In 2013, there have been 4 meetings at the Company premises. Every director attends all meetings except Mr. Danaisidh Peslapunt who miss 1 meeting due to illness.

*GǰBOZǰEJSFDUPSǰIBTǰTJHOJųDBOUǰDPOŴJDUǰPGǰJOUFSFTUǰJOǰBOZǰBHFOEB ǰTVDIǰEJSFDUPSǰTIBMMǰOPUǰBUUFOEǰUIFǰNFFUJOHǰEVSJOHǰ the consideration of that agenda.

The Company’s Board of Directors has its policy in allowing the non-executive Directors to conduct their own meeting as deem necessary. This is to debate all issues concerning the Management without their present, and the $IJFGǰ&YFDVUJWFǰ0GųDFSǰXJMMǰCFǰJOGPSNFEǰPGǰUIFǰNFFUJOHǰSFTVMU MEDIA REVOLUTIONIST 79

Self - Evaluation on the Performance of the Board of Directors The Company’s Board of Directors arranges for its self - evaluation annually by using the Company’s self - evaluation form. The Board of Directors will individually and jointly consider their performances for their joint consideration in PSEFSǰUPǰJNQSPWFǰGPSǰNPSFǰFGųDJFOUǰPQFSBUJPOTǰ

4FMGǰıǰFWBMVBUJPOǰFMFNFOUTǰDPOTJTUǰPGǰUIFǰTUSVDUVSFǰBOEǰRVBMJųDBUJPOǰSPMFT ǰEVUJFTǰBOEǰSFTQPOTJCJMJUJFTǰNFFUJOHǰBOEǰ duties of the Board of Directors, relationship with management, self - development of the Board, and development of Executives.

Moreover, the Nomination and Remuneration Committee will supply suggestions on regulations for the evaluation POǰQFSGPSNBODFǰPGǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰQSPQPTFǰGPSǰUIFǰBQQSPWBMǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰ3FTVMUTǰPGǰUIFǰ QFSGPSNBODFǰXJMMǰCFǰFWBMVBUFEǰCZǰUIFǰFWBMVBUJPOǰGPSNǰTQFDJųFEǰCZǰUIFǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFFǰ and to be evaluated by the Company’s Board of Directors which only consists of Independent Directors for further improvement.

The Company’s Board of Directors arranged for its self-evaluation every year. On February 26, 2013 in the Company’s Board of Directors’ meeting No. 1/2013, had made annual consideration on self-evaluation of the Company’s Board of Directors of 2013, so that the Company’s Board of Directors could jointly consider the performances, and QSPCMFNTǰGPSǰGVSUIFSǰJNQSPWFNFOUǰ3FTVMUTǰPOǰQFSGPSNBODFǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰGPSǰUIFǰZFBSǰǰIBEǰ been evaluated by the Company’s Board of Directors which consisted of only Independent Directors for further consideration and improvement.

Moreover, the Board of Directors has arranged for performance evaluations for other committees such as the Audit Committee, and the Nomination and Remuneration Committee.

Remuneration The Company has clearly and transparently stipulated policy on remuneration for Directors and Executives. During the ordinary shareholders’ meeting No. 1/2003 and the Company’s Board of Directors’ meeting No. 5/2003, remuneration for Directors was approved to be within the similar level of the same industry which was high enough UPǰBUUSBDUǰBOEǰQSPUFDUǰUIFǰRVBMJųFEǰ%JSFDUPSTǰBOEǰCFǰJOǰBDDPSEBODFǰXJUIǰUIFǰ$PNQBOZĴTǰPQFSBUJOHǰSFTVMUTǰ5IFǰ Executives remuneration would be in accordance with the Company’s operating results, and individual Executives QFSGPSNBODFǰ'PSǰ$IJFGǰ&YFDVUJWFǰ0GųDFSĴTǰQFSGPSNBODFǰFWBMVBUJPO ǰUIFǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFFǰ TVQQMJFEǰJOQVUTǰPOǰSFHVMBUJPOTǰGPSǰUIFǰFWBMVBUJPOǰPOǰQFSGPSNBODFǰPGǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰQSPQPTFǰGPSǰ the approval of the Board of Directors. Results on the performance were evaluated by the Company’s Board of Directors which only consisted of Independent Directors. (Details on remuneration for Directors and Executives were shown in “Shareholding Structure of the Company).

Directors and Executives’ Development The Company’s Board of Directors has the policy on assigning the present Director to introduce new Director to UIFǰ$PNQBOZ ǰBOEǰMFDUVSJOHǰPOǰUIFǰTVNNBSJ[BUJPOǰPGǰUIFǰ$PNQBOZĴTǰCVTJOFTTǰQMBO ǰPQFSBUJOHǰSFTVMUT ǰTUSBUFHZ ǰ competitive situations, vision, corporate culture, corporate governance, business ethics and other details concerning the Company’s operation etc. 80 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

The Company’s Board of Directors has the policy to create and develop new knowledge for Directors and Executives by encouraging them to attend seminars and meetings which provide useful topics that have been arranged by the 5IBJǰ*OTUJUVUFǰPGǰ%JSFDUPST ǰBOEǰPUIFSǰSFMBUFEǰPSHBOJ[BUJPOTǰJOǰPSEFSǰUPǰTVQQPSUǰFGųDJFOUǰPQFSBUJPOT ǰXJUIǰBMMǰDPTUTǰ UPǰCFǰųOBODJBMMZǰTVQQPSUFEǰCZǰUIFǰ$PNQBOZǰ EFUBJMTǰXFSFǰTIPXOǰJOǰĶ%FTDSJQUJPOǰPGǰ.BOBHFNFOUǰ5FBNǰBOEǰPUIFSǰ persons overseeing the Company”).

4VDDFTTJPOǰQMBOǰGPSǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFT The Company’s Board of Directors supports the arrangement of succession plan that will assist in smooth operation of the Company. Moreover, the Board of Directors also makes preparation for the executive development program GPSǰUIFǰTVDDFTTJPOǰQMBOǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFTǰ ǰJOǰDBTFǰUIBUǰUIFZǰDBOOPUǰQFSGPSNǰ their duties. This is to reduce risks from dis-continuation in corporate management with the following procedures:

1. The Executive Board and Human Development Committee have to consider and select high potential Executives for further development and preparation.

2. The Human Development Committee is to develop the assigned group by preparing for the high level development plan for high level Executives.

3. The Executive Board and Human Development Committee will together make the appropriate selection on DBOEJEBUFTǰGPSǰUIFǰQPTJUJPOTǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFTǰ'PSǰUIFǰTFMFDUFEǰQPTJUJPOǰPGǰ UIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFS ǰUIFǰTFMFDUJPOǰXJMMǰQSFDFEFǰUPǰUIFǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFF ǰBOEǰUIFǰ Company’s Board of Directors for consideration.

4. The Nomination and Remuneration Committee will make consideration on the proposed person concerning the TVJUBCJMJUZ ǰLOPXMFEHF ǰBOEǰDPNQFUFODZǰUIBUǰXJMMǰCFOFųUǰUIFǰ$PNQBOZǰXJUIǰPUIFSǰOFDFTTBSZǰSFMBUFEǰJOGPSNBUJPOǰ for proposal in the Company’s Board of Directors meeting and further appointment.

Investor Relation 5IFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰSFBMJ[FTǰUIBUǰųOBODJBMǰBOEǰOPOųOBODJBMǰJOGPSNBUJPOǰSFTVMUǰJOǰEFDJTJPOǰNBLJOHǰ impact on investors and stakeholders. Then, disclosure on information must be importantly correct, complete, and adequate through various media channels of the Stock Exchange of Thailand, and the Company’s website. Moreover, meetings have been arranged between the Company’s Management team and securities analysts, and general investors in order to have question and answer sessions equally.

)FODF ǰUIFǰ$PNQBOZǰBTTJHOTǰUIFǰĶ*OWFTUPSǰ3FMBUJPOǰ6OJUķǰUPǰDPNNVOJDBUFǰBOEǰQSPWJEFTǰTFSWJDFTǰPOǰJOGPSNBUJPO ǰ corporate news, and Company’s various activities to institutional investors, shareholders, analysts, related Government agencies, and the general public. Investors can contact this unit at MEDIA REVOLUTIONIST 81

Telephone No. : 0-2511-0911 and 0-2511-0555 ext 1503, 1505 Website : http://www.rs.co.th/investor.html Facebook : http://www.facebook.com/pages/Rs-ir/256459961140733 Twitter : https://twitter.com/RS_IR E-mail Address : [email protected], [email protected]

Moreover, in 2013, the Company published information through many activities such as:- Ļǰǰǰ"OBMZTUǰ.FFUJOHǰUPǰBOOPVODFǰUIFǰ$PNQBOZĴTǰPQFSBUJOHǰSFTVMUTǰJOǰFWFSZǰRVBSUFSǰ5IFǰBOBMZTUTǰIBEǰPQQPSUVOJUZǰ to ask questions on various topics with the Management with the meeting’s documents to be published in the Company’s website.

Ļǰǰǰ1BSUJDJQBUFǰXJUIǰPUIFSǰSFHJTUFSFEǰDPNQBOJFTǰJOǰUIFǰĶ0QQPSUVOJUZǰ%BZķ ǰPSHBOJ[FEǰCZǰUIFǰ4UPDLǰ&YDIBOHFǰPGǰ Thailand in March and August 2013.

Ļǰǰǰ1BSUJDJQBUFǰJOǰFWFOUTǰPSHBOJ[FEǰCZǰUIFǰ4UPDLǰ&YDIBOHFǰPGǰ5IBJMBOEǰBOEǰųOBODFǰDPNQBOJFTǰGPSǰNFFUJOHTǰXJUIǰ institutional , and foreign investors such as Thailand Focus 2013 in Thailand, Citi ASEAN Conference in Singapore, BOEǰ SPBETIPXǰ JOǰ WBSJPVTǰ DPVOUSJFTǰ TVDIǰ BTǰ )POHǰ ,POH ǰ 4JOHBQPSF ǰ .BMBZTJB ǰ +BQBOǰ BOEǰ 64" ǰ FUDǰ %VSJOHǰ UIFǰ shareholders’ meeting to announce the operating results, and resolutions on various important issues of the Company, shareholders were given opportunity to question Executives on various issues and minute of the meeting was published in the Company’s website. Report on annual form F 56-1, and the annual report F 56-2 were published through SET Community Portal (SCP) system of the Stock Exchange of Thailand, and through the Company’s website. The annual report will be delivered to shareholders and general public annually. Nomination of Directors and Executives The Board of Directors Meeting No. 3/2007 held on February 26, 2007 had its resolution to appoint the Nomination and Remuneration Committee and also approved the responsibilities of the Nomination and Remuneration Committee. Hence, personnel selection for the company’s Director must proceed through the Nomination and Remuneration Committee. The Director’s selection procedures must be done by the Nomination and Remuneration Committee XIPTFǰDPOTJEFSBUJPOǰXJMMǰCFǰCBTFEǰBTǰQFSǰRVBMJųDBUJPOǰJOǰTFDUJPOǰǰPGǰUIFǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰ"DUǰ#&ǰǰ (1992) and the related announcements of the Securities and Exchange Commission. Moreover, considerations will CFǰCBTFEǰPOǰBCJMJUZ ǰFYQFSJFODFT ǰLOPXMFEHF ǰBOEǰTQFDJųDǰTLJMMǰGPSǰUIFǰCFOFųUǰBOEǰEFWFMPQNFOUǰPGǰDPNQBOZĴTǰ business, and dedicating their times and efforts in conducting their duties. Then, the list will be submitted to the Board of Directors and shareholders’ meeting for approval.

To appoint the Board of Directors, the shareholders’ meeting appoints the director based on majority scores with the following regulations and guidelines: (A) The voting score of each shareholder is equal: one share equals one score (B) Shareholders can vote for each directorial appointment. (C) Persons who receive the highest scores will be appointed to the committee. In the case of any persons SFDFJWJOHǰFRVBMǰTDPSFT ǰUIFǰOPNJOBUJPOǰQSFTJEFOUǰXJMMǰNBLFǰUIFǰųOBMǰEFDJTJPOǰ 82 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

The Board of Directors Independence from Management The Company’s Board of Directors consists of 3 non-Executive Directors (3 Independent Directors), and 6 Executive Directors, details of each Directors are shown in topic “Description of Management Team and Other Persons Overseeing the Company”

Chairman of the Board of Directors is the same person as the Chairman of Executive Committee, and represents major group of shareholders. However, as structure of the Company’s Board of Directors consists of 1/3 of Independent Directors, there is check and balance in business operations.

5IFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰBDLOPXMFEHFTǰUIBUǰUIFǰǰ*OEFQFOEFOUǰ%JSFDUPSTǰIBWFǰRVBMJųFEǰBTǰQFSǰSFHVMBUJPOTǰ stipulated by the Company as in details from “Management Structure of the Company”. The Company’s Board of Directors is in agreement and appoints Mr. Phisit Dachanabhirom, the Independent Director, who has vast LOPXMFEHFǰBOEǰFYQFSJFODFTǰJOǰųOBODJBMǰBOEǰBDDPVOUJOHǰųFME ǰUPǰCFDPNFǰ$IBJSNBOǰPGǰUIFǰ"VEJUǰ$PNNJUUFF

Suitability of the Board of Directors 5IFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰTUJQVMBUFEǰTVJUBCMFǰRVBMJųDBUJPOTǰGPSǰQFSTPOTǰUPǰIPMEǰUIJTǰQPTJUJPOǰBTǰQFSTPOǰ XJUIǰLOPXMFEHF ǰFYQFSJFODFT ǰBOEǰTQFDJųDǰDBQBCJMJUZǰGPSǰ$PNQBOZĴTǰCFOFųUǰ5IJTǰJODMVEFTǰEPOBUJOHǰUJNF ǰLOPXMFEHF ǰ capability, and effort in performing duty for the Company. There is also regulations for all Directors and high level Executives (**) to report their securities holding consistently to the Company’s Board of Directors.

Director, in the Company’s Board of Directors, is not allowed to hold position as Director in the registered companies of more than 3 companies, and Executive Director is not allowed to hold position as Director in other registered companies of more than 2 companies. This includes holding position as Director of the Company’s Chairman of Executive Committee, and high level Executive (**) in other registered companies must be approved by the Company’s Board of Directors beforehand.

Director or the high level executive of the Company must not be employed as employee or partner of the Company’s external auditor company during the past 2 years.

3FNBSLǰ ǰNFBOTǰ&YFDVUJWFǰVOEFSǰEFųOJUJPOǰPGǰUIFǰ4&$

5IFǰ#PBSEǰPGǰ%JSFDUPSTĴǰ&GųDJFODZǰJOǰ1FSGPSNJOHǰ*UTǰ%VUJFT

Policy Stipulation The Company’s Board of Directors participates in regulating vision, mission, duty, strategy, target, business plan, and budget of the Company. This also includes supervision on the Management team to proceed as business plan, BOEǰBHSFFEǰCVEHFUǰFGųDJFOUMZǰBOEǰFGGFDUJWFMZ ǰBSSBOHFNFOUǰPOǰHPPEǰDPSQPSBUFǰHPWFSOBODFǰQPMJDZ ǰJOUFSOBMǰDPOUSPMǰ system, internal auditing and suitable risk management and policy, including consistently follow up on operating performances in the Board of Directors’ meeting. Moreover, the Board of Directors has to make consideration on regulations and separation of duties, and responsibilities clearly among the Board of Directors, Audit Committee, MEDIA REVOLUTIONIST 83

Nomination and Remuneration Committee, Risk Management Committee, Good Corporate Governance Committee, &YFDVUJWFǰ$PNNJUUFF ǰ)VNBOǰ%FWFMPQNFOUǰ$PNNJUUFFǰBOEǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰǰ5IFǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰ to review, and approve the Company’s vision and mission at least once in every 5 years.

Management Supervision The Company’s Board of Directors has to make evaluation on adequacy of internal control, and result on risk management and compliance with the good corporate governance policy at least once a year. On February 26, 2013, the Company’s Board of Directors meeting No. 1/2013 has evaluated on the adequacy of internal control, result on risk management and compliance with the good corporate governance policy.

Supervision on the Operations of subsidiaries and associated companies For the appointment of Directors for subsidiaries and associated companies, the nomination and voting are under the management from 2014 onwards, and has to receive approval from the Company’s Board of Directors. Persons who are appointed as Directors for subsidiaries and associated companies have the duties to operate for the best interest of the subsidiaries and associated companies. The appointed Directors require approval from the Company’s Board of Directors prior to making resolution, or voting on important issue that is on the same level that requires approval from the Board of Directors if this is operated by the Company itself.

Moreover, in case of the subsidiaries, the appointed persons have to oversee that the subsidiaries have regulations DPODFSOJOHǰUSBOTBDUJPOTǰPGǰSFMBUFEǰDPNQBOJFT ǰXJUIǰEBUBǰDPMMFDUJPO ǰBOEǰBDDPVOUJOHǰSFDPSEǰUIBUǰDBOǰCFǰWFSJųFE ǰBOEǰ DPNQMJFEǰGPSǰUIFǰųOBODJBMǰTUBUFNFOUǰPOǰUJNF ǰBTǰXFMMǰBTǰBQQSPQSJBUFǰBOEǰDPODJTFǰJOUFSOBMǰDPOUSPMǰTZTUFN

During 2013, the Company has conformed to the Good Corporate Governance except for the following instant: 1. Did not disclose the Executive Directors’ remunerations that had been received as Directors from other companies as it is not information of the Company.

Monitoring Internal Use of Information The Company has explained to the administrators their responsibilities in reporting the number of shares in the company owned by them, their spouses and their children who are considered as minors, and any changes made to the holdings, to the Stock Exchange of Thailand, in accordance with Article 59, where the penalty is indicated in Article 275 of the Securities and Exchange Act B.E. 2535 (1992). Apart from the legislative measures, the company has the policy covering the internal information usage written in the Code of Conduct for the group, approved by the Board of Directors on March 1, 2006, to serve as a guideline to all directors, management and employees. The Code of Conduct was latest reviewed, improved and approved by the resolution of the Board of Directors Meeting No. 1/2013 held on February 26, 2013.

In addition, the Company has laid out rules and regulations on the use of the company’s internal information as follows: 84 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

(1) The Director, Executive, staff members and the employees of the company are obliged to treat the internal JOGPSNBUJPOǰPGǰUIFǰ$PNQBOZǰXJUIǰDPOųEFOUJBMJUZǰ

(2) The Director, Executive, staff members and the employees of the Company should not directly or indirectly EJTDMPTFǰDPOųEFOUJBMǰPSǰJOUFSOBMǰJOGPSNBUJPOǰPGǰUIFǰ$PNQBOZǰGPSǰUIFǰQFSTPOBMǰCFOFųUǰPGǰBOZǰJOEJWJEVBMǰ

(3) The Director, Executive, the staff members and the employees of the Company should not buy, sell, transfer PSǰSFDFJWFǰUIFǰDPNQBOZĴTǰBTTFUTǰCZǰVTJOHǰUIFǰDPOųEFOUJBMǰPSǰJOUFSOBMǰJOGPSNBUJPOǰUIBUǰNBZǰDBVTFǰEJSFDUǰPSǰJOEJSFDUǰ damage to the Company.

The above mentioned regulations include the spouses and children who are considered minors of the Board of Directors, the staff members and employees of the company. Any violation of the Company’s regulations would be considered as a serious breach of those regulations which could lead to a penalty ranging from a verbal warning to being asked to leave the company.

4JODFǰ ǰUIFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰTQFDJųFEǰUIFǰQPMJDZǰGPSCJEEJOHǰ%JSFDUPST ǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFTǰ ǰUPǰUSBEFǰUIFǰ$PNQBOZǰTUPDLǰEVSJOHǰUIFǰQFSJPETǰPGǰǰXFFLTǰCFGPSFǰQVCMJTIJOHǰPGǰUIFǰųOBODJBMǰTUBUFNFOUT ǰBOEǰ ǰEBZTǰBGUFSǰEJTDMPTJOHǰPGǰUIFǰųOBODJBMǰTUBUFNFOUT

Auditor Remuneration Remuneration from auditing service The Company and its subsidiaries have paid the audit fees to Karin Audit Co., Ltd., the Company’s auditing DPNQBOZǰGPSǰUIFǰZFBSǰ ǰUIBUǰJODMVEFTǰQFSTPOǰPSǰCVTJOFTTǰSFMBUFEǰUPǰUIFǰBVEJUPSTǰBOEǰBVEJUJOHǰPGųDFǰVOEFSǰUIFǰ auditing company during the past year, to the amount of Baht 2.7 Million which separates into Baht 0.8 Million from the Company, and Baht 1.9 Million from its subsidiaries.

Non-Audit Fee -Nil- MEDIA REVOLUTIONIST 85 12 Responsibilities toward society, environment, and related persons 86 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Responsibilities toward society, environment, and related persons

1. Equitable business practices 1. Organization Development The Company strives for legitimacy practice, and The Company promotes the building of corporate performs its duties with honesty and straight forwardness culture within its group of companies starting from under the Company’s rules and regulations and new employee orientation and through continuous performs the business ethics in all its activities and external education on all year round activities such as decision makings of the Company. “RS Team Building” activity for employees, and “RS Team Leader” for management. 2. Complying with laws and human rights 2. Career Development The Company stresses the importance on complying The Company has stipulated the career path and with laws and human rights by adhering on its business promotion path for employees, including stipulation practises to be in accordance with laws. This also on duration for management training hours for each includes the human rights which is the basic rights of group of employees to be promoted as management. all human beings who are born with equality with the Employees’ preparation has been conducted through same honour, and privilege without deprivation or non- the management e-learning project which is the On- allowance of any special rights, or any discrimination Line training and testing on topic of “Management due to their differences on races, nationalities, religions, $PNQFUFODZķǰPGǰUIFǰPSHBOJ[BUJPOǰGPSǰMPXFSǰBOEǰNJEEMFǰ genders, colour of their skins, ages, languages, or management group. educational institutions, and including other items 3. Training Development unrelated to the discrimination on human rights. Guideline for the training development has been TQFDJųFEǰCZǰVTJOHǰĶ$PNQFUFODZǰ#BTFǰ5SBJOJOHķǰUPHFUIFSǰ 3. Equal treatment to the labour force with the research result that necessarily required for the 5IFǰ$PNQBOZǰJTǰXFMMǰSFBMJ[FEǰUIBUǰBMMǰFNQMPZFFTǰBSFǰ training need. Development methods are based on the the most valuable asset of the Company, and are the public training and in-house training that cover on topics most important factor in pushing the Company to of knowledge development, attitude development, and BDIJFWFǰJUTǰHPBMTǰ)FODF ǰUIFǰ$PNQBOZǰIBTǰFNQIBTJ[FEǰ skill development such as sale and marketing training on fair treatment and practice in terms of opportunity, courses on “Presentation for Success”, and on topic remuneration, promotion, job transfer, dismissal, as of image building and sale personality development XFMMǰBTǰEFųOJOHǰQMBOǰGPSǰIVNBOǰEFWFMPQNFOUǰJOUPǰǰ etc. The Company also offers other non-training, and MFWFMTǰTVDIǰBTǰUIFǰPSHBOJ[BUJPOǰEFWFMPQNFOU ǰDBSFFSǰ knowledge sharing activities that open opportunities development, and training development. for interested employees to participate in the form of special lectures by other successful executives, BOEǰTQFBLFSTǰGSPNǰPUIFSǰPSHBOJ[BUJPOTǰTVDIǰBTǰTQFDJBMǰ lecture on tax benefits, organising talk show on investment knowledge, and activity on knowledge of LTF & RMF etc. MEDIA REVOLUTIONIST 87

Moreover, during 2013, activities to promote and 5. Roles and Responsibilities toward Community, develop its human resources in many important aspects Environment, and the General Public. The Company have been arranged by the Company and subsidiaries BEIFSFTǰUPǰDPOEVDUǰJUTǰCVTJOFTTǰGPSǰCFOFųUǰPGǰUIFǰ such as: economy, society, and environment with consideration 1.) Appropriate health check-up program for on its duty and responsibility towards the country, employees’ annual health check-up that includes society, and environment as well as operating and negotiation with hospital for special price on additional controlling its business completely under the scope health check items and including health check-up by of laws and other related regulations. This also IPTQJUBMǰBUǰUIFǰ$PNQBOZĴTǰPGųDF includes determination in driving trend for the quality ǰǰǰǰ ǰ&NQMPZFFĴTǰXFMGBSFǰCFOFųUTǰTVDIǰBTǰNFEJDBMǰ development of society, and environment on its own and expenses’ welfare through life and accident group by cooperation with the government and community. JOTVSBODF ǰųOBODJBMǰXFMGBSF ǰBOEǰPUIFST ǰTVDIǰBTǰųOBODJBMǰ Responsibility towards society and environment must welfare for funeral, in case of death, and in case of wholeheartedly and continuously be promoted to all death for employee’s father, mother, child, or lawful levels of employees into becoming good and valuable TQPVTF ǰųOBODJBMǰIFMQǰGPSǰNBSSJBHF ǰPSEJOBUJPO ǰFUD DJUJ[FOǰPGǰUIFǰDPNNVOJUJFTǰBOEǰTPDJFUZǰ4VQQPSUTǰBSFǰ 3.) Engagement activities for employees such as to be given constantly to employees for participation the New Year activity, football matches in order to in various activities for the communities and society in build relationship among departments within the establishing good corporate culture in future. PSHBOJ[BUJPOǰFUD In 2013, important roles and responsibilities toward 4.) Arrangement on seminar concerning safety and society of the RS group can be listed below: sanitation in the work place by supplying knowledge, OFXTǰUISPVHIǰWBSJPVTǰNFEJBǰXJUIJOǰUIFǰPSHBOJ[BUJPO ǰ BOEǰBMTPǰBDUJWJUZǰPOǰUIFǰBOOVBMǰųSFǰESJMMT

4. Responsibilities toward customer and consumer The Company determines to create and produce all types of media and entertainment portfolios for continuous satisfaction to the customers, distribution of quality products and services to customers as well as supplying the working unit to give services, care, explanation on queries and various problem-solving for customers. 88 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

R Siam - Activity on Moral Moral Support Support against Flooding against Flooding

R Siam, the subsidiary under RS Public Company Limited, operates under “Activity on Moral Support against 'MPPEJOHķǰIBTǰBSSBOHFEǰBDUJWJUZǰUPǰIFMQǰŴPPEǰWJDUJNTǰJOǰWBSJPVTǰBSFBTǰBTǰGPMMPXT

Phanat Nikhom District, Chonburi Province

Area in Wat Kudkoon, and Hard Kooduer, .VBOHǰ%JTUSJDU ǰ6CPOǰ Ratchathani Province

Bang Kratum District, Bansang, Phitsanulok Province Nardee, and Kabinburi District, PrachinBuri Province MEDIA REVOLUTIONIST 89

“Do For Dad” Activity Do (This card is for our father) For Dad

On the occasion of His Majesty the King’s Birthday on December 5th and the 2014 New Year celebration, in order to show loyalty to His Majesty the King and love towards our father, the RS Public Company Limited, in cooperation with Raks Thai Foundation, and Chulalongkorn Hospital, have arranged for the “Do For Dad” project (this card is for our father) under the “RS Give Back” project of RS Public Company Limited, and “84 Years – 84 Schools” of the Raks Thai Foundation. This activity has been conducted throughout December month by arranging for artists or the “Raks Thai” Good-will Ambassador to write the father day cards together with children suffering from chronic illness at the Chulalongkorn Hospital so the children can post these cards showing love to their fathers. 90 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

“Support the Elephant Family” Support the Project Elephant

RS Public Company Limited, under the “RS Give Back” project, in coordination with the “Thai Society for the Prevention of Cruelty to Animals”, TSPCA, have arranged activity on inviting people and the general public to support in feeding the baby elephants. This is to take care and help the growing baby elephants not to becoming stray elephant and living under proper care. Artist “Nako Jump”, the TSPCA Good-Will Ambassa- dor for 2013, is a role model in supporting the baby elephant through the “Asian Elephant Foundation of Thailand” with the aim to attract general public in supporting and helping elephant, which is the country’s animal mascot, and in order to stimulate people’s attention in participating in valuable activities for society. MEDIA REVOLUTIONIST 91

Kamikaze - Lunch Treat Project for “Rajvithi Home for Girls” Give & Share

5IFǰ,BNJLB[FǰNVTJDǰMBCFM ǰBǰTVCTJEJBSZǰPGǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFE ǰVOEFSǰUIFǰĶ,BNJLB[Fǰ(JWFǰǰ4IBSFķǰ project has arranged for a lunch treat at “Rajvithi Home for Girls”. This is to pay and share happiness back to society by giving lunch to about 70 girls with age between 6 – 18 years old who have been under conditions that require relief due from problems of lacking supporter, poor family, or under distress condition with improper care, broken family, father or mother require assistance or under arrest, etc. Apart from activities on entertainment and lunch treat, the Company also donates part of the activity’s income to the “Rajvithi Home for Girls” for other activities as well. 92 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Other Activities for Society during 2013

Ķ'VMųMMJOHǰ-PWF ǰ$BSFǰBOEǰ Warmth” Activity on Senior $JUJ[FOǰ%BZ

Activity, for RS employees with volunteering spirits, for charity run in the 26th Standard Charter - Bangkok Marathon with donation to Ananda Mahidol Foundation. MEDIA REVOLUTIONIST 93

Public Relation Presenter on the World Aids Day

Activity on Blood Donation as Royal Charity on Mother Day 94 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Moreover, RS Public Company Limited, in coordination with the Stock Exchange of Thailand, has arranged for internal training on topic of “CSR Branding for Sustainability” for all its working units. This is to share knowledge BOEǰVOEFSTUBOEJOHǰJOǰPSEFSǰUPǰBQQMZǰUIFǰ$43ǰDPODFQUǰGPSǰFGųDJFOUǰCVTJOFTTǰPQFSBUJPOTǰPGǰUIFǰEVSBCJMJUZǰQSPEVDUǰ branding, and business operations of the Company.

6. Environmental Management The Company has promoted in establishing campaign and building conscious among employees on conservation, BOEǰVTJOHǰSFTPVSDFTǰBOEǰFOFSHZǰDMFWFSMZǰBOEǰFGųDJFOUMZǰ5IJTǰBMTPǰJODMVEFTǰTVQQPSUǰBOEǰDSFBUFTǰBDUJWJUJFTǰUIBUǰBSFǰ CFOFųDJBMǰGPSǰUIFǰQSFTFSWBUJPO ǰDPOTFSWBUJPO ǰBOEǰPOǰDPOUJOVPVTMZǰDPOTVNJOHǰOBUVSBMǰSFTPVSDFT ǰFOWJSPONFOU ǰBOEǰ WBSJPVTǰFOFSHZǰTPVSDFTǰ5IJTǰJTǰFYFDVUFEǰCZǰQSPNPUJOHǰPOǰDBNQBJHOTǰBOEǰCVJMEJOHǰKPJOUǰDPOTDJPVTǰJOUPǰSFBMJ[JOHǰUIFǰ CFOFųU ǰWBMVF ǰBOEǰFGųDJFOUMZǰDPOTVNJOHǰSFTPVSDFTǰXIJDIǰJODMVEFTǰFMFDUSJDJUZǰVTBHFǰDPOTFSWBUJPOǰCZǰTXJUDIJOHǰPGGǰ light switches, and electrical appliances after each usage, turn off light switches during lunch break, turn off the BJSǰDPOEJUJPOJOHǰVOJUTǰIBMGǰBOǰIPVSǰCFGPSFǰMFBWJOHǰPGųDF ǰVTJOHǰTUBJSTǰJOTUFBEǰPGǰUIFǰFMFWBUPS ǰXBUFSǰDPOTFSWBUJPOǰCZǰ IBWJOHǰPGųDJBMǰUPǰNPOJUPSǰMFBLBHFTǰPGǰFRVJQNFOU ǰPJMǰDPOTFSWBUJPOǰCZǰQSJPSǰQMBOOJOHǰCFGPSFǰBOZǰKPVSOFZ ǰVTJOHǰFNBJMǰ instead of using paper document delivery, and also including other energy reservation in the work-place such as using 2 sides of paper, etc. Apart from constant public relation campaign by supplying information to employees, energy conservation campaigns are used for stimulation under the “OFFICE No. 5” campaign with award to be presented to the working unit with the most outstanding achievement on energy conservation as well. Awards received during 2013

Mrs. Pornpan Techarungchaikul, the Chief 0QFSBUJOHǰ0GųDFS ǰBOEǰ.STǰ4VQBOVUǰ Praditsathien, the Investor Relations Manager, received award for “Outstanding Investor Relation Awards 2013” under the “SET Awards 2013” campaign in which the Stock Exchange of Thailand, in coordination with the “Money & Banking” NBHB[JOF ǰIBEǰPSHBOJ[FEǰUIFǰFWFOUǰUPǰ announce distinctions with awards to the registered companies with distinctive results JOǰWBSJPVTǰųFMET MEDIA REVOLUTIONIST 95

Mr. Ong-art Singlumpong, the Managing Director of television channel 8, received award from HRH Princess Soamsavali Kitiyakara on behalf of the “Action on Smoking and Health Foundation Thailand”

Kung Sutiraj Wongtaewan received the award “Sinrapin Baowee RSiam ( Chief Master Krobkrua Bhuddamaka”, Sergeant of the Air Force Weerayuth Narnchar), on the occasion of PunChan Parama Imanothai RSiam, Poj Suwannapun RSiam, New Chalutjak Trinongluck, and Soe “Wisaka Buchar” Satayut Nakthongpetch Wong Plit, received festival in 2013. award of “PikkaNaraesuan” 2013 which was held by the “Broadcaster and Journalist’s Assembly of Thailand (BJ.AT) 96 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 13 Internal Control and Risk Management MEDIA REVOLUTIONIST 97

Internal Control and Risk Management 5IFǰ$PNQBOZǰFNQIBTJ[FTǰUIFǰJNQPSUBODFǰPGǰQSPNPUJOHǰ and guidelines for operations, and to be followed up UIFǰJOUFSOBMǰDPOUSPMǰUPǰCFǰTVGųDJFOUǰBOEǰTVJUBCMFǰGPSǰJUTǰ and evaluated on the result of the policy. Moreover, the business operations in order to protect against damage Company’s Board of Directors has to clearly stipulate PSǰJNQSPQFSǰCFOFųDJBMǰVTBHFǰ5IFǰǰǰBVEJUǰEFQBSUNFOUǰ the business operations’ target, review the business is responsible for auditing important operations and plan, and give suggestion to the management for ųOBODJBMǰBDUJWJUJFT ǰBOEǰTVCNJUUJOHǰUIFǰBVEJUǰSFQPSUǰ consideration and operation. directly to the Audit Committee. This is to give the audit department enough independence in its operations. 2. Risk Management 5IFǰ$PNQBOZǰFNQIBTJ[FTǰUIFǰJNQPSUBODFǰPGǰSJTLǰ At present, chief of the internal control is Miss Korapin management by appointing the Risk Management Naksuprangsi, the Assistant Vice President of the Audit Committee to specify the policy, regulation, and with Department. support to be given to ensure that the risk management &EVDBUJPOǰǰ5SBJOJOH is in accordance to policy, or plan and with successful Ļǰǰǰ#BDIFMPSǰEFHSFFǰJOǰ"DDPVOUJOHǰ$IVMBMPOHLPSOǰ implementation. ǰǰǰǰ6OJWFSTJUZ Ļǰǰ.BTUFSǰEFHSFFǰJOǰ#VTJOFTTǰ"ENJOJTUSBUJPO 3. Operational control of the management ǰǰǰ5IBNNBTBUǰ6OJWFSTJUZ The Company has the policy, regulation, operational Ļǰǰ1BSUJDJQBUFEǰJOǰWBSJPVTǰUSBJOJOHǰBOEǰTFNJOBSǰDPVSTFTǰ HVJEFMJOF ǰBVUIPSJ[BUJPO ǰBQQSPWJOHǰQPXFSǰJOǰPSEFSǰUPǰ from the Federation of Accounting Professions, have strict control. Institute of Internal Auditors of Thailand, Thai Institute of Directors (IOD), and Stock Exchange of Thailand. 4. Information systems and data communications The Company has arranged for the information systems Experiences : that systematically relating to the accounting, and Ļǰǰǰǰǰ ǰ "TTJTUBOUǰ.BOBHFSǰPGǰĶ,1.(ǰ ųOBODJBMǰSFQPSUJOHǰPQFSBUJPOT ǰBOEǰJTǰJOǰBDDPSEBODFǰXJUIǰ Phoomchai Audit Co., Ltd.” the controlling policy and regulations. Ļǰǰ%FDǰǰǰQSFTFOUǰǰ "TTJTUBOUǰ7JDFǰ1SFTJEFOUǰPGǰ the Audit Department - RS Plc. 5. Monitoring System During the committee meeting no. 1/2557 on February The Company’s Board of Directors acknowledges the 26, 2014 in which 3 members of the Audit Committee operating results comparing to targets for every quarter, were presented, the Audit Committee had evaluated and having the internal control department that evaluates UIFǰTVGųDJFODZǰPGǰJOUFSOBMǰDPOUSPMǰTZTUFNǰCZǰDIFDLJOHǰ UIFǰTVGųDJFODZ ǰBOEǰFGųDJFODZǰof the existing control information from the Executives, and reply from system, and monitoring the internal control system questionnaires on sufficiency of the Company’s of various work-units to be in accordance with the internal control system by themselves. Evaluation approved controlling plan from the Audit Committee. on the Company’s internal control system could be TVNNBSJ[FEǰJOUPǰǰQBSUTǰBTǰGPMMPXT Hence, the Board of Directors has the opinion that, at QSFTFOU ǰUIFǰ$PNQBOZǰIBTǰTVGųDJFOUǰJOUFSOBMǰDPOUSPMǰ 1. Corporation and environment: system concerning transactions with major shareholders, 5IFǰ$PNQBOZǰSFDPHOJ[FTǰHPPEǰFOWJSPONFOUǰJOǰUIFǰXPSLǰ directors, executives, or persons related to the stated place by stipulating on good corporate governance policy persons. On the internal control under other topics, the and using code of conduct booklet of the Company’s Board of Directors has the opinion that the Company group of companies. These are publicised as references BMSFBEZǰIBTǰTVGųDJFOUǰJOUFSOBMǰDPOUSPM 98 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 14 Related Party Transactions MEDIA REVOLUTIONIST 99

Related Party Transactions Details and information of related party transactions of the Company, subsidiary companies, and related companies BSFǰJMMVTUSBUFEǰJOǰUIFǰOPUFǰPGǰUIFǰųOBODJBMǰTUBUFNFOUTǰBTǰPGǰ%FDFNCFSǰ ǰǰ5IFǰ$PNQBOZĴTǰ"VEJUǰ$PNNJUUFFǰ had examined the related party transactions and made a remark that those related party transactions are in accordance with general commercial conditions, and rules and regulations of the Stock Exchange of Thailand with DPNQMFUFǰFWJEFODFǰPGǰBMMǰUSBOTBDUJPOTǰBTǰXFMMǰBTǰBEFRVBUFǰEJTDMPTVSFǰPGǰUIFǰųOBODJBMǰTUBUFNFOUTǰǰǰǰ

In 2013 from January 2013, the Company and its subsidiaries underwent related party transactions with individuals XIPǰNBZǰQPTTFTTǰBǰDPOŴJDUǰPGǰJOUFSFTUǰBTǰGPMMPXTǰ

Person who may Relationship FODPVOUFSǰDPOŴJDUT Chetchotisak Company Mr. Surachai Chetchotisak is a director and shareholder holding 18.70% of the paid-up Limited capital of Chetchotisak Co., Ltd. Mrs. Sujeera Chetchotisak is a shareholder holding 6.30% of the paid-up capital of Chetchotisak Co., Ltd. She is also wife of Mr. Surachai Chetchotisak, a director and shareholder of the 32.39 % of the shares with voting rights of the company. Mr. Suwat Chetchotisak is a director and shareholder holding 14.35% of the paid-up capital of Chetchotisak Co., Ltd. He is a shareholder holding 4.63% of the Company’s paid-up capital and he is also Mr.Surachai Chetchotisak’s brother. Miss Malee Chetchotisak is a director and shareholder holding 14.50% of the paid-up capital of Chetchotisak Co., Ltd. She is a sibling of Mr. Surachai Chetchotisak and Mr. Suwat Chetchotisak. Mr. Surachai Chetchotisak He is a director and shareholder holding 32.39% of the Company’s paid-up capital. SS2C Co., Ltd. Mr. Surachai Chetchotisak is a director and shareholder holding 30.00% of the paid-up capital of SS2C Co., Ltd. Mrs. Sujeera Chetchotisak is a shareholder holding 30.00% of the paid-up capital of SS2C Co., Ltd. She is also wife of Mr. Surachai Chetchotisak, a director and shareholder of the 32.39 % of the shares with voting rights of the company. Mr. Chot Chetchotisak is a shareholder holding 20.00% of the paid-up capital of SS2C Co., Ltd. He is a shareholder holding 0.01% of the Company’s paid-up capital and he is also Mr.Surachai Chetchotisak’s son. Mr. Chet Chetchotisak is a shareholder holding 20.00% of the paid-up capital of SS2C Co., Ltd. He is a shareholder holding 0.17% of the Company’s paid-up capital and he is also Mr.Surachai Chetchotisak’s son.

3FNBSLǰ5IFǰTIBSFIPMEJOHǰQSPQPSUJPOǰPGǰQFSTPOTǰXIPǰNBZǰFODPVOUFSǰDPOŴJDUTǰXBTǰEBUFEǰPOǰǰ%FDFNCFSǰ 100 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Nature of Related Party Transactions and Pricing Conditions and Policy The pricing of related party transactions was principally concentrated on the assets rental and appropriate EFUFSNJOFEǰCBTFEǰPOǰUIFǰNBSLFUǰQSJDFǰBOEǰPUIFSǰDPOEJUJPOTǰJOTJHOJųDBOUMZǰEJGGFSFOUǰGSPNǰUIPTFǰJOǰUIFǰNBSLFUǰ5IFǰ related party transactions comprised of:

0GųDFǰ3FOUBMǰ *OǰUIFǰųOBODJBMǰTUBUFNFOUTǰGPSǰUIFǰZFBSǰFOEFEǰ%FDFNCFSǰ ǰ ǰUIFǰ$PNQBOZǰBOEǰTVCTJEJBSJFTǰNBEFǰQBZNFOUǰPGǰ UIFǰPGųDFǰSFOUBM ǰDPNNPOǰTFSWJDFǰGFF ǰQVCMJDǰVUJMJUJFTǰFYQFOTFǰBOEǰPUIFSǰSFOUBMTǰUPǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰ BOEǰ44$ǰ$PNQBOZǰ-JNJUFEǰ SFQSFTFOUJOHǰUIFǰQBSUZǰXJUIǰXIPNǰUIFǰDPOŴJDUǰPGǰJOUFSFTUǰNBZǰBSJTF ǰJOǰUIFǰBNPVOUǰPGǰ Baht 64.98 million, Baht 8.51 million and Baht 0.22 million respectively.

The Company also rented the Chetchotisak building 1 – 4 from Chetchotisak Company Limited with the purpose GPSǰVTJOHǰUIFNǰBTǰPGųDFǰCVJMEJOHTǰBOEǰQBSLǰCVJMEJOHǰCZǰQBZJOHǰSFOUBMǰBOEǰDPNNPOǰTFSWJDFǰGFFǰBUǰUIFǰSBUFǰPGǰ#BIUǰ 230 – 320 per square meter which is reasonable when comparing to nearby buildings which charged the rental and common service fee at Baht 380 – 600 per square meter.

For other building rental fee, near to the vicinity of to Chetchotisak Company Limited and SS2C Company Limited BTǰQFSǰEFUBJMTǰJOǰDIBSUǰǰPOǰJUFNTǰ ǰ ǰBOEǰ ǰUIFǰSFOUBMǰBOEǰDPNNPOǰTFSWJDFǰGFFǰXFSFǰUPǰCFǰQBJEǰBTǰŴBUǰSBUFǰ UIFǰŴBUǰSBUFǰTFSWJDFǰGFFǰNFBOTǰUIFǰSFOUBMǰBOEǰDPNNPOǰTFSWJDFǰGFFǰXJMMǰCFǰDIBSHFEǰGPSǰUIFǰXIPMFǰCVJMEJOHǰSBUIFSǰ than the number of square meters based on the conditions of each building), with the purpose for using them as PGųDFǰBOEǰDBSǰQBSLǰCVJMEJOHTǰǰǰ

)PXFWFS ǰUIFǰPGųDFǰUIFǰ$PNQBOZǰSFOUFEǰGSPNǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰ BTǰQFSǰEFUBJMTǰJOǰDIBSUǰǰPOǰ JUFNTǰ ǰBOEǰ ǰXBTǰUIFǰPGųDFǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰSFOUFEǰGSPNǰUIFǰ.S,SJFOHLSBJǰ$IFUDIPUJTBLǰBOEǰ JNQSPWFEǰUIFǰUPXOIPVTFǰVUJMJUZǰTQBDFǰJOUPǰUIFǰPGųDFǰ5IFǰ$PNQBOZǰQSPWJEFEǰGBDJMJUBUJPOǰPGǰQVCMJDǰVUJMJUJFTǰBOEǰ charged the rental/service fees at the charter rate, with an average rate about Baht 265 per square meter (calculate from rental / service charge as total package cost divided by average usage area of the building) which was at lower average rate than the Chetchotisak building 1-3. This was reasonable rate as in the detailed comparison in previous section. Moreover, reason that the Company had to sub-rent from the Chetchotisak Company Limited, because UIJTǰDPNQBOZǰXBTǰBOǰFYQFSUǰJOǰPGųDFǰSFOUBMǰNBOBHFNFOU MEDIA REVOLUTIONIST 101

0GųDFǰ3FOUBMǰ

Rental fee, Rented Contract period Central space Approved by Building / Address Renter Rent by Service fee / (square month (**) metre) Start End ( * ) (million Baht) 1. Chetchotisak Building 1 Chetchotisak RS Public Company 3,864 1.12 June 2012 May 2015 Board of Directors 419/1 Soi Ladphrao 15, Co.,Ltd. Limited Jatujak, Bangkok 2. Chetchotisak Building 2 Chetchotisak RS Public Company 4,645 1.33 June 2012 May 2015 Board of Directors 419/2 Soi Ladphrao 15, Co.,Ltd. Limited Jatujak, Bangkok COOLISM Co.,Ltd. 1200 0.36 June 2012 May 2015 Board of Directors RS In-store Media 50 0.01 June 2012 May 2015 Board of Directors Co.,Ltd. K-Master Co.,Ltd. 183 0.04 Jan 2013 May 2015 Board of Directors 3. Chetchotisak Building 3 Chetchotisak RS Public Company 2,242 0.65 July 2013 July 2015 Board of Directors 419/3 Soi Ladphrao 15, Co.,Ltd. Limited Jatujak, Bangkok 4. 419/4 Soi Ladphrao 15, SS2C Co.,Ltd. RS Public Company (Lump 0.69 August Dec 2015 Board of Directors Jatujak, Bangkok Limited sum price) 2012 5. 203/18-20 Mr.Kriengkai Thai Copyright (Lump 0.05 June 2012 May 2015 Board of Directors Soi Ladphrao 15, Chetchotisak / Collection Co.,Ltd. sum price) Jatujak, Bangkok Chetchotisak RS Public Company (Lump 0.12 June 2012 May 2015 Board of Directors Co.,Ltd. Limited sum price) 6. 203/34-36 Mr.Kriengkai Thai Copyright (Lump 0.14 June 2012 May 2015 Board of Directors Soi Ladphrao 15, Chetchotisak / Collection Co.,Ltd. sum price) Jatujak, Bangkok Chetchotisak Co.,Ltd.

Land Rental *OǰUIFǰųOBODJBMǰTUBUFNFOUTǰGPSǰUIFǰZFBSǰFOEFEǰ%FDFNCFSǰ ǰ ǰUIFǰ$PNQBOZǰBOEǰTVCTJEJBSJFTǰNBEFǰQBZNFOUǰ of land rental to Chetchotisak Company Limited in the amount of Baht 0.28 million.

The Company and subsidiary company rented the land from the Chetchotisak Company Limited while this land had been subleased from Mr.Kriengkai Chetchotisak for using as equipment storage building by charging the land rental at the rate of Baht 95 - 135 per square wah, which was considered reasonable when compared to the rental of nearby land. The rental details were as follows: 102 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Land Rental

Rental fee/ Rented Contract term Approved by Type Renter Rent by month space (Baht) ( * ) (**) Land Mr.Kriengkai RS Public 152 20,000 Feb 2013 - May 2015 Management Soi Ladphrao 15 Chetchotisak / Company square (***) Jatujak, Bangkok Chetchotisak Limited wah Co.,Ltd. K-Master 52 5,000 Jan 2013 - May 2015 Co.,Ltd. square metre

Note : * The rental agreement may be renewed at expiry. (The rental agreement renewal may not be automatically enabled and the reconsideration at any renewal shall be made). ** The Related Party Transactions were approved as per the regulations of the Capital Market Supervisory Board, , and were disclosed as per the Stock Exchange of Thailand’s announcements. ǰǰǰ5IJTǰBHSFFNFOUǰXBTǰQSPDFFEFEǰCZǰ.BOBHFNFOUǰTJODFǰUIFǰTJ[FǰPGǰUIFǰUSBOTBDUJPOǰEJEǰOPUǰNFFUǰUIFǰDSJUFSJBǰUIBUǰSFRVJSFEǰUIFǰBQQSPWBMǰPGǰUIFǰ Board of Directors as per the regulations of the Capital Market Supervisory Board.

Purchase of Fixed Assets -Nil-

Guarantee -Nil-

The Necessity and Rationale of the Related Party Transactions "MMǰSFMBUFEǰQBSUZǰUSBOTBDUJPOTǰBSFǰEPOFǰVOEFSǰUIFǰOFDFTTJUZǰBOEǰSBUJPOBMFǰPGǰUIFǰUSBOTBDUJPOTǰUPǰPQUJNJ[FǰUIFǰųSNǰ CFOFųUǰ ǰUIFǰSFMBUFEǰQBSUZǰUSBOTBDUJPOTǰCFUXFFOǰUIFǰ$PNQBOZǰBOEǰUIFǰTVCTJEJBSZǰDPNQBOJFTǰBOEǰSFMBUFEǰ QBSUJFT ǰUIFǰDPSFǰUSBOTBDUJPOǰPGǰXIJDIǰBSFǰ-BOEǰSFOUBM ǰ0GųDFǰSFOUBMǰBOEǰ(VBSBOUFF ǰXFSFǰVOEFSǰOPSNBMǰDPVSTFǰPGǰ business, no special condition and no transfer of interest. Pricing, fee rate and/or interest rate could be compared XJUIǰPUIFSǰFOUJUJFTĴǰUSBOTBDUJPOTǰBOEǰIBTǰCFFOǰEJTDMPTFEǰJOǰUIFǰOPUFTǰUPǰųOBODJBMǰTUBUFNFOUTǰPGǰ

The Audit Committee has reviewed the related party transactions such as sales and purchase of goods or assets, DPQZSJHIU ǰ QSPEVDUJPOǰ TFSWJDF ǰ PSHBOJ[JOHǰ DPODFSUTǰ BOEǰ NBSLFUJOHǰ BDUJWJUJFT ǰ TBMFTǰ PGǰ BEWFSUJTJOH ǰ TFSWJDFT ǰ MPBOǰ JOUFSFTU ǰBOEǰFUD ǰEJTDMPTFEǰJOǰUIFǰOPUFTǰUPǰųOBODJBMǰTUBUFNFOUTǰPGǰǰBOEǰIBTǰUIFǰGPMMPXJOHǰDPNNFOUT

The mentioned transactions occurred under normal course of business, necessity and rationale of the connected USBOTBDUJPOTǰUPǰPQUJNJ[FǰUIFǰųSNǰCFOFųU MEDIA REVOLUTIONIST 103

Measures or Steps of Approval in Related Party Transactions The Company has set a policy for the approval of related party transactions. The related party transactions has SPPUFEǰJOǰOFDFTTJUZ ǰSBUJPOBMFǰBOEǰPQUJNBMǰPGǰUIFǰųSNǰCFOFųUǰBOEǰDPOEJUJPOTǰBSFǰJOEJGGFSFOUǰUPǰUIFǰUSBOTBDUJPOǰ XJUIǰFYUFSOBMǰQBSUJFTǰ*OǰDBTFǰPGǰUIFǰTJHOJųDBOUǰSFMBUFEǰQBSUZǰUSBOTBDUJPOT ǰDPOEVDUFEǰJOǰBDDPSEBODFǰXJUIǰUIFǰSVMFǰ governing listed securities, all approval must be consented by the Audit Committee, the Board of Directors and Shareholders’ meeting excluding votes of the related persons. Nevertheless, all procedures must be in line with concerned regulations of the Capital Market Supervisory Board.

Policy and Future Potential of Related Party Transactions, including acquisition and disposal of assets The Company still maintains the policy for transactions between the Company and the subsidiary companies TVDIǰBTǰPGųDFǰSFOUBM ǰMBOEǰSFOUBMǰBOEǰHVBSBOUFFǰPGǰMPBOǰGSPNǰCBOLǰCZǰUIFǰ$PNQBOZǰBOEǰUIFǰ$PNQBOZĴTǰEJSFDUPSTǰ )PXFWFS ǰUIFǰ$PNQBOZǰIBTǰOPǰQPMJDZǰUIBUǰNBZǰMFBEǰUPǰDPOŴJDUǰPGǰJOUFSFTUTǰCFUXFFOǰUIFǰSFMBUFEǰQFSTPOTǰ TVDIǰ BTǰMPBOǰBOEǰHVBSBOUFFǰPGǰMPBOǰFUD ǰFYDFQUǰGPSǰUIFǰDBTFǰUIBUǰXJMMǰPQUJNJ[FǰUIFǰųSNǰCFOFųU ǰBOEǰDPOEJUJPOTǰBSFǰ indifferent or better than the transaction with external parties. The Company will ensure that all related party transactions according to concerned regulations of the Capital Market Supervisory Board, will be consented by the Board of Directors and Shareholders’ meeting. 104 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 15 Financial Highlights MEDIA REVOLUTIONIST 105

Financial Highlights Statements of Financial Position For the Year Ended December 31, 2011 - 2013 (Thousand baht)

2011 2012 2013 Detail (Audited) % (Audited) % (Audited) % ASSETS CURRENT ASSETS : Cash and cash equivalents 282,174 14.7% 313,597 12.3% 572,147 19.2% 5FNQPSBSZǰJOWFTUNFOUǰǰųYFEǰEFQPTJUǰ 4,208 0.2% 4,306 0.2% 4,391 0.1% with maturity of twelve months Trade accounts receivable-net 626,099 32.7% 652,953 25.6% 756,169 25.3% Trade accounts receivable- Related 1,907 0.1% 11,155 0.4% 19,730 0.7% parties-net Short-term loans to related parties - net 10,000 0.5% - - - - Inventories - net 37,392 2.0% 140,564 5.5% 63,312 2.1% Accrued income 140,261 7.3% 244,965 9.6% 233,716 7.8% Other current assets 113,369 5.9% 152,697 6.0% 98,823 3.3% Total Current Assets 1,215,409 63.5% 1,520,237 59.5% 1,748,288 58.5% /0/$633&/5ǰ"44&54ǰ Investments in associated company 1,458 0.1% 5,606 0.2% 5,496 0.2% for under the equity method Property plant and equipment - net 111,763 5.8% 259,520 10.2% 310,016 10.4% Advance payment of license for - - - - 38,000 1.3% operation right in spectrum of digital television Intangible assets - net 469,231 24.5% 643,320 25.2% 720,771 24.1% Deferred tax assets 40,330 2.1% 64,554 2.5% 73,119 2.4% Other non-current assets 75,269 3.9% 61,830 2.4% 90,520 3.0% Total Non-Current Assets 698,050 36.5% 1,034,830 40.5% 1,237,922 41.5% TOTAL ASSETS 1,913,459 100.0% 2,555,067 100.0% 2,986,210 100.0% 106 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Statement of Financial Position For the Year Ended December 31, 2011 - 2013 (Cont.) (Thousand baht)

2011 2012 2013 Detail (Audited) % (Audited) % (Audited) % LIABILITIES AND EQUITY CURRENT LIABILITIES : 4IPSUUFSNǰMPBOTǰGSPNǰųOBODJBMǰJOTUJUVUJPOT - - 86,000 3.4% - - Trade accounts payable and others payable 231,308 12.1% 195,324 7.6% 185,015 6.2% Trade accounts payable and others - related 1,305 0.1% 1,697 0.1% 1,659 0.1% $VSSFOUǰQPSUJPOǰPGǰǰMJBCJMJUZǰVOEFSǰųOBODJBMǰ 2,488 0.1% 4,587 0.2% 5,140 0.2% lease agreements $VSSFOUǰQPSUJPOǰPGǰFNQMPZFFǰCFOFųUǰ - - - - 11,011 0.4% obligations Current portion of long-term loan - - 240,000 9.4% 286,915 9.6% Short-term loans from related parties - - - - 8,000 0.3% 6OFBSOFEǰSFWFOVFTǰǰPUIFST 66,481 3.5% 74,880 2.9% 196,725 6.6% Accrued expenses 249,427 13.0% 324,454 12.7% 463,323 15.5% Other current liabilities 113,716 5.9% 164,678 6.4% 164,382 5.5% Total Current Liabilities 664,724 34.7% 1,091,619 42.7% 1,322,170 44.3% NON-CURRENT LIABILITIES : -JBCJMJUJFTǰVOEFSǰųOBODJBMǰMFBTFǰBHSFFNFOUT 10,982 0.6% 16,684 0.7% 12,759 0.4% Long-term loans - - 81,000 3.2% - - &NQMPZFFǰCFOFųUǰPCMJHBUJPOT 15,971 0.8% 32,537 1.3% 38,756 1.3% Deferred tax liabilities - - 21,134 0.8% 30,874 1.0% Other non-current liabilities 6,142 0.3% 10,626 0.4% 11,394 0.4% Total Non-Current Liabilities 33,095 1.7% 161,981 6.3% 93,783 3.1% Total Liabilities 697,819 36.5% 1,253,600 49.1% 1,415,953 47.4% EQUITY Share capital : "VUIPSJ[FEǰTIBSFǰDBQJUBMǰ 1,026,000 53.6% 1,026,000 40.2% 1,026,000 34.4% Issued and paid - up share capital 882,654 46.1% 882,692 34.5% 953,867 31.9% Treasury shares - - (74,672) (2.9%) (74,672) (2.5%) Premium on share capital 129,502 6.8% 129,536 5.1% 193,593 6.5% Advance receipts for share subscription - - 17,225 0.7% 30,061 1.0% Difference between the purchase price of (16,594) (0.9%) (16,594) (0.6%) (16,594) (0.6%) investment in subsidiaries under common control and their net book value 3FUBJOFEǰFBSOJOHTǰ %FųDJUT ǰ Appropriated - Legal reserve 17,959 0.9% 32,312 1.3% 52,995 1.8% Appropriated - Treasury share reserve - - 74,672 2.9% 74,672 2.5% 6OBQQSPQSJBUFE 187,237 9.8% 251,060 9.8% 353,342 11.8% Equity attributable to owners of the Company 1,200,759 62.8% 1,296,232 50.7% 1,567,264 52.5% Non - controlling interests 14,881 0.8% 5,235 0.2% 2,993 0.1% Total equity 1,215,640 63.5% 1,301,467 50.9% 1,570,257 52.6% TOTAL LIABILITIES AND EQUITY 1,913,459 100.0% 2,555,067 100.0% 2,986,210 100.0% MEDIA REVOLUTIONIST 107

Statements of Comprehensive Income For the Year Ended December 31, 2011 - 2013 (Thousand baht)

2011 2012 2013 Detail (Audited) % (Audited) % (Audited) % Revenues Revenue from media 941,852 34.5% 1,192,979 42.4% 1,986,275 57.4% Revenue from music distribution 934,477 34.2% 883,216 31.4% 777,175 22.5% 3FWFOVFǰGSPNǰTIPXCJ[ 814,141 29.8% 718,826 25.6% 692,561 20.0% Revenue from other services 38,885 1.4% 17,370 0.6% 5,452 0.2% Total sales and services income 2,729,356 100.0% 2,812,391 100.0% 3,461,463 100.0% Cost of sales and services 1,799,490 65.9% 1,751,614 62.3% 2,109,271 60.9% (SPTTǰQSPųU 929,866 34.1% 1,060,778 37.7% 1,352,192 39.1% Other income 35,666 1.3% 60,201 2.1% 22,354 0.6% (SPTTǰQSPųUǰCFGPSFǰFYQFOTFT 965,532 35.4% 1,120,978 39.9% 1,374,547 39.7% Selling expenses 101,264 3.7% 151,472 5.4% 213,511 6.2% Administrative expense 534,736 19.6% 556,744 19.8% 659,219 19.0% "NPSUJ[BUJPOǰPGǰFNQMPZFFǰCFOFųUǰFYQFOTFT 9,859 0.4% 8,598 0.3% 8,705 0.3% Total expenses 645,860 23.7% 716,813 25.5% 881,435 25.5% 1SPųUǰCFGPSFǰųOBODFǰDPTUTǰBOEǰǰ 319,673 11.7% 404,165 14.4% 493,112 14.2% income tax Finance costs 2,707 0.1% 7,509 0.3% 17,294 0.5% 1SPųUǰCFGPSFǰJODPNFǰUBY 316,965 11.6% 396,656 14.1% 475,818 13.7% Income tax 117,547 4.3% 122,824 4.4% 83,561 2.4% 1SPųUǰBOEǰDPNQSFIFOTJWFǰJODPNFǰGPSǰ 199,418 7.3% 273,832 9.7% 392,257 11.3% the years

Attributable to Owner of the Company 189,109 6.9% 284,273 10.1% 394,492 11.4% Non - controlling interests 10,310 0.4% (10,442) (0.4%) (2,235) (0.1%) 199,418 7.3% 273,832 9.7% 392,257 11.3%

Earnings per share Owner of the Company (Baht) 0.2172 0.3256 0.4364 Number of ordinary shares (Shares) 870,696 873,049 903,953

Diluted earnings per share Owner of the Company (Baht) 0.2035 0.2991 0.4116 Weighted average number of diluted ordinary shares (Shares) 929,102 950,440 958,410 Financial Statement Year 2011 are update in accordance with Accounting Standards applicable in the Year 2013 by the Management. 108 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Statements of Cash Flows For the Year Ended December 31, 2011 - 2013 (Thousand baht)

2011 2012 2013 Detail (Audited) % (Audited) % (Audited) % CASH FLOWS FROM OPERATING ACTIVITIES ǰǰǰ/FUǰQSPųU 199,418 70.7% 273,832 87.3% 392,257 68.5% ǰ"EKVTUNFOUTǰUPǰSFDPODJMFǰOFUǰQSPųUǰUPǰ net cash provided by (used in) operating activities ǰ%FQSFDJBUJPOǰBOEǰBNPSUJ[BUJPOǰǰ 85,419 30.3% 92,930 29.6% 278,242 48.6% Allowance for doubtful accounts (2,119) (0.8%) (2,913) (0.9%) (13,720) (2.4%) (reversal) and written off withholding tax Allowance for decline in value of 5,218 1.8% 2,425 0.8% (12,402) (2.2%) inventory (reversal) Allowance for sales return - net (reversal) (21,407) (7.6%) 38,701 12.3% (10,973) (1.9%) Allowance for impairment of assets (reversal) 1,901 0.7% (18,694) (6.0%) 28,296 4.9% Allowance for impairment - investment - - (4,148) (1.3%) - - in associate (reversal) Reversal impairment - investment in - - - - 110 0.0% subsidiaries (reversal) Allowance for doubtful accounts on (2,039) (0.7%) - - - Short-term loans Provision for loss on investment in - - - - (2,253) subsidiaries (reversal) Provision for damage from litigation case 3,861 1.4% 2,001 0.6% - - Loss (gain) on sales and written off (3,556) (1.3%) 20,538 6.5% 515 0.1% equipment Loss on sales of intangible assets - - 167 0.1% - - ǰ1SPWJTJPOǰGPSǰFNQMPZFFǰCFOFųUTǰ 17,391 6.2% 16,566 5.3% 17,230 3.0% ǰ6OSFBMJ[FEǰHBJOǰPOǰFYDIBOHFǰSBUFTǰ - - (507) (0.2%) (67) (0.0%) Interest income (4,265) (1.5%) (2,395) (0.8%) (4,761) (0.8%) Interest expenses 2,707 1.0% 7,509 2.4% 17,294 3.0% Income tax 117,565 41.7% 122,824 39.2% 83,561 14.6% ǰ1SPųUǰGSPNǰPQFSBUJOHǰBDUJWJUJFTǰCFGPSFǰ changes in operating assets and liabilities 400,096 141.8% 548,837 175.0% 773,329 135.1% (INCREASE) DECREASE IN OPERATING ASSETS Trade accounts receivable (139,156) (49.3%) (36,670) (11.7%) (94,808) (16.6%) Inventories 9,824 3.5% (105,597) (33.7%) 89,721 15.7% Other current assets 3,218 1.1% (141,397) (45.1%) 62,002 10.8% Other non - current assets (4,303) (1.5%) (23,442) (7.5%) (9,163) (1.6%) INCREASE (DECREASE) IN OPERATING LIABILITIES Accounts payable and others payable 14,663 5.2% (37,222) (11.9%) (6,047) (1.1%) Other current liabilities 8,050 2.9% 80,368 25.6% 300,943 52.6% ǰ%FDSFBTFǰJOǰFNQMPZFFǰCFOFųUǰPCMJHBUJPOTǰ (1,420) (0.5%) - - - - Other non - current liabilities 379 0.1% 4,030 1.3% 3,020 0.5% Proceed from refunding witholding tax 26,435 9.4% 42,516 13.6% 11,775 2.1% Payment of income tax (80,639) (28.6%) (119,527) (38.1%) (146,492) (25.6%) Net Cash Provided by Operating Activities 237,148 84.0% 211,895 67.6% 984,281 172.0% MEDIA REVOLUTIONIST 109

Statements of Cash Flows For the Year Ended December 31, 2011 - 2013 (Cont.) (Thousand baht)

2011 2012 2013 Detail (Audited) % (Audited) % (Audited) % CASH FLOWS FROM INVESTING ACTIVITIES Interest income 4,020 1.4% 2,685 0.9% 4,570 0.8% Increase in short-term loans to related (8,102) (2.9%) (8,040) (2.6%) - - parties and related persons Receipts from short-term loans to - - 18,040 5.8% - - related parties and related persons Decrease in short-term loans to others (901) (0.3%) 1,531 0.5% 1,309 0.2% Cash received from sales of investment - - 2,610 0.8% - - in subsidiary Payment of inventment in subsidiaries - - (2,610) (0.8%) - - ǰ5FNQPSBSZǰJOWFTUNFOUTǰǰųYFEǰEFQPTJUǰ (124) (0.0%) (98) (0.0%) 85 0.0% with maturity of twelve months Increase in payable for purchase on assets - - 2,149 0.7% (2,149) (0.4%) ǰ1VSDIBTFǰPGǰųYFEǰBTTFUTǰ (33,313) (11.8%) (191,636) (61.1%) (121,262) (21.2%) ǰ1SPDFFETǰGSPNǰEJTQPTBMǰPGǰųYFEǰBTTFUTǰ 4,222 1.5% 8,996 2.9% 1,267 0.2% Advance payment of license for operation right in spectrum of digital - - - - (38,000) (6.6%) Increase in intangible assets (322,990) (114.5%) (221,589) (70.7%) (313,590) (54.8%) Net Cash Used in Investing Activities (357,188) (126.6%) (387,963) (123.7%) (467,769) (81.7%) CASH FLOWS FROM FINANCING ACTIVITIES Payment of interest expenses (2,741) (1.0%) (6,860) (2.2%) (17,452) (3.0%) Receipt of short-term loans from 45,000 15.9% 166,000 52.9% 25,000 4.4% ǰǰǰǰųOBODJBMǰJOTUJUVUJPOTǰ Repayment of short-term loans from (45,000) (15.9%) (80,000) (25.5%) (111,000) (19.4%) ǰǰǰǰųOBODJBMǰJOTUJUVUJPOTǰ Receipts of long-term loans from - - 321,000 102.4% 205,915 36.0% ǰǰǰųOBODJBMǰJOTUJUVUJPOTǰ Repayment of long-term loans from (15,000) (5.3%) - - (240,000) (41.9%) ǰǰǰųOBODJBMǰJOTUJUVUJPOTǰ ǰ3FQBZNFOUǰPGǰMJBCJMJUZǰVOEFSǰųOBODJBMǰMFBTFǰǰ (12,117) (4.3%) (4,364) (1.4%) (4,787) (0.8%) Increase in subsidiary's share capital - - 800 0.3% - - Increase in short-term loans from - - - - 8,000 1.4% related parties Dividend paid (230,667) (81.7%) (131,430) (41.9%) (271,535) (47.4%) Premium on Share Capital - - (74,672) (23.8%) - - Advance receipts for share subscription - - 17,225 5.5% 30,061 5.3% Increase in share capital 298,367 105.7% 72 0.0% 118,007 20.6% Net Cash Provided by (Used in) Financing Activities 37,843 13.4% 207,772 66.3% (257,792) (45.0%) NET INCREASE (DECREASE) IN CASH AND CASH (82,197) (29.1%) 31,704 10.1% 258,720 45.2% ǰǰǰǰǰ&26*7"-&/54ǰ ǰ46#4*%"3:4ǰ$"4)ǰ"5ǰ*/7&45.&/5ǰ4"-&4ǰ - - (4,634) (1.5%) - - ǰ46#4*%"3:4ǰ$"4)ǰ"5ǰ*/7&45.&/5ǰ163$)"4&ǰ - - 4,353 1.4% - - ǰ$"4)ǰ"/%ǰ$"4)ǰ&26*7"-&/54ǰ"5ǰ5)&ǰ 364,371 129.1% 282,174 90.0% 313,597 54.8% BEGINNING OF THE YEAR ǰ$"4)ǰ"/%ǰ$"4)ǰ&26*7"-&/54ǰ"5ǰ5)&ǰ 282,174 100.0% 313,597 100.0% 572,317 100.0% ENDING OF THE YEAR Financial Statement Year 2011 are update in accordance with Accounting Standards applicable in the Year 2013 by the Management. 110 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Key Financial Ratios As at 31 December (Thousand baht)

Financial Ratio 2011 2012 2013 Liquidity Ratios Liquidity Ratio (time) 1.83 1.39 1.32 Quick Ratio (time) 1.38 0.90 1.02 Cash Flows Ratio (time) 0.36 0.24 0.82 Account Receivable Turnover (time) 4.90 4.35 4.81 Average Debt Collection Period (day) 75 84 76 Inventory Turnover (time) 24.65 14.49 16.37 Average Number of Days Sales (day) 15 26 23 Accounts Payable Turnover (time) 8.76 9.28 12.71 Credit Period (day) 42 40 29 Cash Cycle (day) 48 70 70 1SPųUBCJMJUZǰ3BUJP (SPTTǰ1SPųUǰ.BSHJOǰ 34.07% 37.72% 39.06% 0QFSBUJOHǰ1SPųUǰ.BSHJOǰ 10.41% 12.23% 13.60% 0QFSBUJOHǰ$BTIǰ'MPXTǰUPǰ0QFSBUJOHǰ1SPųUǰ3BUJPǰ 83.50% 61.60% 209.08% /FUǰ1SPųUǰ.BSHJOǰ 6.84% 9.90% 11.32% Return on Equity (%) 18.23% 22.77% 27.55% &GųDJFODZǰ3BUJPT Return on Asset (%) 18.42% 18.09% 17.80% Return on Fixed Asset (%) 203.65% 178.44% 162.63% Assets Turnover (time) 1.59 1.29 1.10 EBITDA Margin (%) 15.30% 17.03% 16.61% Leverage Ratio Debt/Equity Ratio (time) 0.58 0.97 0.90 Interest Coverage (time) 118.08 53.82 28.51 Debt Service Coverage (Cash basis)(time) 0.76 0.53 1.32 Dividend Payment Rate (%) 70.01% 76.83% 83.86% Per Share Book Value per Share (baht) 1.38 1.48 1.73 Earning per Share (baht) 0.2172 0.3256 0.4364 MEDIA REVOLUTIONIST 111 16 Management Discussion and Analysis 112 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Board of Directors’ Report

To Shareholders, R.S. Public Company Ltd.

5IFǰ#PBSEǰPGǰ%JSFDUPSǰJTǰSFTQPOTJCMFǰGPSǰUIFǰSFQPSUJOHǰPGǰUIFǰDPOTPMJEBUFEǰųOBODJBMǰTUBUFNFOUTǰPOǰUIFǰDPNQBOZǰ and subsidiaries, contents of which have been consistently prepared with respect to the Thai generally accepted accounting standards where prudence are duly exercised and information disclosed in the notes accompanying the statements.

The Extraordinary General Meeting of Shareholders No. 1/2546 has approved an Audit Committee comprising independent directors who are not involved in the day-to-day operations to take responsibility over the quality of UIFǰųOBODJBMǰSFQPSUTǰBOEǰJOUFSOBMǰDPOUSPMT ǰXIJDIǰUIFǰ"VEJUǰ$PNNJUUFFĴTǰPQJOJPOǰXBTǰEFTDSJCFEǰJOǰ"VEJUǰ$PNNJUUFFǰ Report shown in this annual report.

The Board of Director has considered that the company has good internal control and has concurred with the Audit $PNNJUUFF ǰUIFǰ&YFDVUJWFTǰBOEǰUIFǰBVUIPSJTFEǰBVEJUPSTǰGPSǰUIFǰDPOTPMJEBUFEǰųOBODJBMǰTUBUFNFOUTǰPGǰǰPOǰUIFǰ DPNQBOZǰBOEǰTVCTJEJBSJFTǰUIBUǰUIFǰDPNQBOZĴTǰUIFǰųOBODJBMǰQPTJUJPOǰBOEǰUIFǰSFTVMUǰPGǰPQFSBUJPOǰQSFTFOUTǰGBJSMZǰJOǰ conformity with generally accepted accounting principles.

(Surachai Chetchotisak ) $IBJSNBO$IJFGǰ&YFDVUJWFǰ0GųDFS MEDIA REVOLUTIONIST 113

Audit Committee Report

To Shareholders, RS Public Company Ltd.

In 2013, the Audit Committee performed its duties in accordance with the Audit Committee Charter approved by the Board of Directors, and encouraged to enhance good corporate governance. This was to ensure transparency, ethics, BOEǰDPEFǰPGǰDPOEVDUǰDPNQMJBODFǰXIJDIǰDSFBUFEǰDPOųEFODFǰUPXBSETǰTIBSFIPMEFST ǰBOEǰPUIFSǰTUBLFIPMEFSTǰ5IFǰ ųOBODJBMǰTUBUFNFOUTǰPGǰǰIBEǰCFFOǰSFWJFXFEǰCZǰUIFǰ"VEJUǰ$PNNJUUFFǰXJUIǰUIFǰFYFDVUJWFTǰBOEǰUIFǰBVUIPSJ[FEǰ BVEJUPSTǰUPǰųOEǰUIBUǰUIFǰDPNQBOZĴTǰųOBODJBMǰTUBUFNFOUTǰBOEǰųOBODJBMǰEBUBǰEJTDMPTVSFǰBSFǰFOUJSF ǰTVGųDJFOUǰBOEǰ precise and meet the general accounting standard. The Company’s internal control systems are appropriate and no substantial defect has been found. The Company conducts its operations in accordance with the related rules, BOEǰUIFǰHPPEǰDPSQPSBUFǰHPWFSOBODFǰQPMJDZ ǰJODMVEJOHǰUIFǰQPMJDZǰDPODFSOJOHǰUSBOTBDUJPOTǰUIBUǰNJHIUǰCSJOHǰDPOŴJDUǰPGǰ JOUFSFTUǰ5IFǰ"VEJUǰ$PNNJUUFFǰDPNNFOUFEǰUIBUǰUIFǰTUBUFEǰJUFNTǰXFSFǰTVJUBCMFǰUPǰUIFǰVUNPTUǰMPOHUFSNǰCFOFųUǰGPSǰ the Company.

The Audit Committee also held meetings with external auditors and internal audit department in order to discuss the issues on risk assessment, audit results and the adequacy of the internal control systems, including suggestion on prevention or reduction of risks. Moreover, the Audit Committee considered and approved internal audit plans, as well as overseeing the company’s operations to ensure transparency and compliance with laws and regulations. In 2013 the Audit Committee held the meeting for 4 times, including the meeting with external auditors without executives or management in order to grant external auditors the opportunity to express any problems from audit ųOEJOHTǰBOEǰSFDPNNFOEBUJPOTǰ*OǰBEEJUJPO ǰUIFǰ"VEJUǰ$PNNJUUFFǰFWBMVBUFǰUIFǰ"VEJUǰ$PNNJUUFFǰQFSGPSNBODFǰGPSǰ 2013.

The Audit Committee also nominated Karin Audit Company Limited to be chosen as external auditor for 2014 upon DMPTFMZǰDPOTJEFSFEǰUIFǰDPNQBOZĴTǰRVBMJųDBUJPO ǰJOEFQFOEFODF ǰFYQFSJFODFǰBOEǰBVEJUǰGFFǰǰǰ5IJTǰIBTǰCFFOǰQSPQPTFEǰ to the Board of Directors for further approval in Shareholders’ Meeting.

(Phisit Dachanabhirom) Chairman of the Audit Committee 114 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Management Discussion and Analysis

The management discussion and analysis has been prepared from the performances of RS Public Company Limited BOEǰUIFǰDPNQBOJFTǰXJUIJOǰ34ǰ(SPVQǰ ĶTVCTJEJBSJFTķ ǰJOǰBDDPSEBODFǰXJUIǰUIFǰųOBODJBMǰTUBUFNFOUTǰFYBNJOFEǰCZǰ the auditor for the year ending December 31, 2011, 2012 and 2013 respectively. To clearly illustrate the overall performance of RS Group of Companies, the operations are divided into 3 categories i.e., media business, music EJTUSJCVUJPOǰCVTJOFTT ǰBOEǰTIPXCJ[ǰCVTJOFTT ǰBMMǰPGǰXIJDIǰBSFǰUIFǰDPSFǰCVTJOFTTǰPQFSBUJPOTǰPGǰUIFǰ$PNQBOZ 5IFǰFDPOPNJDǰBOEǰJOEVTUSJBMǰTJUVBUJPOTǰUIBUǰSFŴFDUǰUIFǰSFTVMUTǰPGǰPQFSBUJPOǰBOEǰQPMJDZ ǰTUSBUFHZ ǰ or business decision. During the past two years, satellite television business has been regarded as the rising star business that generates increasingly important revenue growth to the Company. This is due from growth in the television media industry, and from ability of the Company’s management team that produces quality performances to the market. However, the main factor that has impact towards overall growth in the television media industry is the expenses on advertising budget of the industry which will increase or decrease depending on many factors such as the economic and political situation, domestic consumers’ consumption, competition among advertisers, and decision making on type of media for advertising, etc.

However, main factors that are important in decision making prior to place advertising from various advertising agencies are the “rating”, and “value for money”. Even though how much the advertising industry will grow any QSPHSBNǰXJUIPVUǰSBUJOHǰXJMMǰOPUǰCFǰBCMFǰUPǰTFMMǰBOZǰBEWFSUJTJOHǰ)FODF ǰUIFǰ$PNQBOZǰSFBMJ[FTǰUIFǰJNQPSUBOUǰPGǰHPPEǰ quality contents that build the program rating and, thus, adjusts the marketing strategy and competitive style to be in correspondence with the present situation that can compete evenly with competitors. This also includes the strategic adjustments to serve future growth as each program will be determined with key strategy such as branding, positioning, clear target group, creative development of the program in correspondence with popularity trend and taste of target group, using strong point of RS as the main element in producing quality program as well as suitable cost management, etc. The strategic formulation will help build rating and attract attention of customers who are the advertising agencies into channeling more of their advertising budgets through the Company’s programs as they foresee value for money with their limited budgets. Summary of operating results by business category 5IFǰDPOTPMJEBUFEǰųOBODJBMǰTUBUFNFOUTǰPGǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰǰBOEǰJUTǰTVCTJEJBSJFTǰ ĶUIFǰ$PNQBOZķ ǰGPSǰ the year ended December 31, 2013 shows Total Sales and Services Income of Baht 3,461.5 million, Cost of Sales PGǰ#BIUǰ ǰNJMMJPOǰBOEǰ4FMMJOHǰBOEǰ"ENJOJTUSBUJWFǰ&YQFOTFTǰBOEǰPUIFSǰFYQFOTFTǰPGǰ#BIUǰǰNJMMJPOǰ1SPųUǰ and Comprehensive Income for the Periods Attributable to the Owner of the Company in this year was Baht 394.5 million, showing an increase of 38.8% or Baht 110.2 million from the same period last year, which was reported at Baht 284.3 million. This is primarily due to:

Revenue 3FWFOVFǰGSPNǰTBMFTǰBOEǰTFSWJDFTǰBUǰUIFǰFOEǰPGǰųTDBMǰZFBSǰ%FDFNCFSǰ ǰ ǰBNPVOUFEǰUPǰ#BIUǰ ǰ.JMMJPO ǰ a net increase of Baht 649.1 Million comparing to 2012, or at 23.1%, which could be separately explained as per each business group as follows: MEDIA REVOLUTIONIST 115

(Unit : Bt. Million) Year 2012 Year 2013 Change Revenues 4GXGPWGHTQOOGFKC 4GXGPWGHTQOOWUKEFKUVTKDWVKQP 4GXGPWGHTQOUJQYDK\ 4GXGPWGHTQOQVJGTUGTXKEGU Total sales and services income Cost of sales and services Gross profit 1VJGTKPEQOG Gross profit before expenses Selling and administrative expenses and other expenses Profit before finance costs and income tax (KPCPEGEQUVU Profit before income tax +PEQOGVCZ Profit and comprehensive income for the years 0QPEQPVTQNNKPIKPVGTGUVU Profit and comprehensive income for the years Attributable to the Owner of the Company 284.3 394.5 38.8% Earnings per share Attributable to the Owner of the Company (Baht) 0.3256 0.4364 34.0%

Revenue from Media Business Revenue from media business consisted of revenues from the television, and radio media business, and in 2013 the Company registered revenue from media business at Baht 1,986.3 Million, an increase from 2012 at the amount of Baht 793.3 Million, or at 66.5%. 116 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Television Media Business: Satellite Television Business : Ratio of revenue from the satellite television business to the total revenue from sales and services was at 29.7%, an increase from last year of 20.1% due to increasing revenue from the advertising sales. The increase was from additional advertising spaces in various forms, quality development of contents, NPEJųDBUJPOTǰPGǰUIFǰDIBSUǰBOEǰTUZMFǰPGǰUIFǰQSPHSBNTǰJOǰPSEFSǰUPǰBQQFBMǰBOEǰBUUSBDUǰNPSFǰBVEJFODFǰBOEǰJODMVEJOHǰ adjustment on sales strategy in correspondence with the changing style of programs. Additionally, external promotional activities of the channels were arranged so that audiences would be able to participate more with the Company. Popular programs in each channel were such as the “Bun Therng 108”, and “Park Pong” program, and new dramas broadcasted this year were “ Gar Kup Hong”, “Kaow Nok Nar”, “Nang Marn”, “Wiwarr Pachartaek”, and “Poochana Sibtitt” from “Channel 8”; the “Bun Therng Mue Thieng”, and “Sod Chuen” programs from “Sabaidee TV”, and “Kon Dung Nung Clear”, and “Hi Entertain” programs from “Channel 2”, etc.

In 2014, “Star Max” channel applies the rebranding strategy by changing its name from “Star Max” to “Channel 2” to make it easy for audiences to remember.

Sport Rights Management: The Company’s revenue on Sport Right management came from the live broadcasting of Spanish football league, the highest league in Spain, or the “Primera Division”, or generally known as the “La Liga”, the “Copa Del Ray” football competition, and home matches of the national Spanish football team in the RVBMJųDBUJPOǰSPVOETǰPGǰUIFǰ'*'"ǰ8PSMEǰ$VQǰǰǰ3BUJPǰPGǰJUTǰSFWFOVFǰUPǰUPUBMǰSFWFOVFǰGSPNǰTBMFTǰBOEǰTFSWJDFTǰXBTǰ at 10.6%, an increase from last year of 2.5% in which the main revenue came from sales of the “Sun Box” set-top boxes, other revenues were from advertising sales, bundling sales, and sublicensing sales, etc.,

Radio Media Business In 2013, ratio of radio media business to total revenue from sales and services was at 16.0%, an increase from last year of 14.2%. Revenue of the radio media business generated from operation of 3 stations i.e., “COOL Fahrenheit 93”, “Sabaidee Radio 88.5”, and “COOL Celsius 91.5” (started broadcasting from end of 1st qtr. 2013), while the other remaining stations “COOL Fahrenheit 93”, “Sabaidee Radio 88.5” operated in 2012 (started broadcasting in 3rd qtr. 2012).

Revenue from radio media business in 2013 showed an increased amount from 2012 due to increasing advertising SBUFǰPGǰUIFǰĶ$00-ǰ'BISFOIFJUǰķǰXIJDIǰDPWFSFEǰIJHIǰVUJMJ[BUJPOǰSBUF ǰBOEǰSFWFOVFǰGSPNǰWBSJPVTǰBDUJWJUJFTǰPGǰUIFǰ station. This also included increasing revenue from an expansion to cover the international music and gradually receiving more popularity from audiences, who listened through radio, on-line media, and through applications. Moreover, continuous activities’ arrangement from the channels on the purpose of public relations, protecting the customers’ base, and allowing audiences to participate with the channels, had received good responses from customers and listeners of the programs. Main activities for this year were “Cool Outing 8”, “Cool Outing Special”, “Ink Eat Around The World” from “COOL Fahrenheit 93”, “Cool Sensation”, “7 Gorgeous”, “I Like COOL Celsius” GSPNǰĶ$00-ǰ$FMTJVTǰķ ǰBOEǰĶǰ,SVOHOVOHǰ/BJDIFFXJUǰıǰ/FSBNJUDIPNFǰ/FSBNJUGVOOǰJOǰ64"ķ ǰĶ$IVOUBOBǰ1BSUZķ ǰ “FungSabaidee Meesupp”, “ Sabaidee Radio Fan club” from “Sabaidee Radio 88.5”. MEDIA REVOLUTIONIST 117

At present, the “COOL Fahrenheit 93” station is still ranked as number one in the easy listening group after a long period of time, and “Sabaidee Radio 88.5” station starts gradually receiving good response and is ranked in high ranking position from the “Nielsen Media Research”.

Revenue from Music Distribution Business Revenue from music distribution business consisted of revenue from physical sales, digital business, and copyright collection. In 2013, the Company generated revenue from music business at Baht 777.2 Million, a decrease from last year of Baht 106.0 Million, or at 12.0%, and ratio of revenue from music distribution to total revenue from sales and services was at 22.5%, a decrease from last year of 31.4% due mainly from reducing income from NVTJDǰEPXOMPBEJOHǰ)PXFWFS ǰNVTJDǰTUSFBNJOHǰTFSWJDFǰUISPVHIǰUIFǰĶ%FF[FSķǰBQQMJDBUJPOǰPOǰĶ%UBDķǰNPCJMFǰQIPOFǰ network that started its service at the end of last year, showed revenue growing trend which resulted from increasing membership number that grew in correspondence with popularity of its type of service, and the growing trend of the 3G mobile phone users. Moreover, revenue from physical sales showed a declining trend resulting from decreased quantity on introduction of the main albums which was in correspond with changing consumers’ behaviour in the market.

Revenue from Show Business 3FWFOVFǰGSPNǰUIFǰTIPXCJ[ǰCVTJOFTTǰDPOTJTUFEǰPGǰSFWFOVFTǰGSPNǰDPODFSUǰPSHBOJ[BUJPOT ǰBOEǰNBSLFUJOHǰBDUJWJUJFT ǰ BSUJTUTĴǰNBOBHFNFOU ǰBOEǰQSPEVDUJPOǰDPOUSBDUTǰ*Oǰ ǰSFWFOVFǰGSPNǰUIFǰTIPXCJ[ǰCVTJOFTTǰBNPVOUFEǰUPǰ#BIUǰ 692.6 Million, a decrease of Baht 26.3 Million from last year, or at 3.7%, and ratio of its revenue to total revenue from sales and services was at 20.0%, a decrease from last year of 25.6%. The main cause was from the decreased JOǰSFWFOVFǰPGǰUBJMPSǰNBEFǰFWFOUTǰXIJDIǰTIPXFEǰSFEVDJOHǰOVNCFSǰPGǰUIFǰųOJTIFEǰDPOUSBDUTǰXIJMFǰSFWFOVFǰGSPNǰ BSUJTUǰNBOBHFNFOUǰBOEǰNBSLFUJOHǰBDUJWJUJFTǰTIPXFEǰJODSFBTJOHǰųHVSFǰ$PODFSUTǰBOEǰNBJOǰBDUJWJUJFTǰPGǰUIFǰZFBSǰ XFSFǰTVDIǰBTǰĶ34ǰ.FFUJOHǰ$PODFSUǰ3FUVSOǰķ ǰĶ4IPSUǰ$IBSHFǰ4IPDLǰ3PDLǰ3FUVSOǰ$PODFSUķ ǰĶ,BNJLB[Fǰ,ǰ'JHIUǰ Concert”, “Looktung Festival Year 3”, “Sabaidee Sunjorn Year 4”, “Thai Life Insurance Sunjorn Concert”, “You Wonder Trip”, “You Tour Your School”, “Miss You Concert”, and “Dara Star Max Concert”, etc.

Cost of Sales and Services Cost of sales and services in 2013 amounted to Baht 2,109.3 Million, an increase of Baht 357.7 Million from 2012, or at 20.4%, which was due mainly from increasing cost of media business both from television and radio media. Cost increasing from the television media came from the development in quality and production of various contents in dramas, game shows, news programs, including variety shows so that they would have solid and attractive contents readily for increasing audience base as well as continued recording of sport content right fees as cost of sales since 2012 onwards. Meanwhile, cost increasing from the radio media came from management of 1 additional station “COOL Celsius 91.5” which started its operation since late in the 1st quarter onwards. 118 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Selling and Administrative Expenses, Other Expenses, and Financial Cost Selling and administrative expenses, and other expenses for the year 2013 was at Baht 881.4 Million, an increase of Baht 164.6 Million from 2012, or at 23.0%, which was from the increase of sales expenses in relation to the JODSFBTFEǰNFEJBǰSFWFOVF ǰBTǰXFMMǰBTǰUIFǰJODSFBTFǰJOǰBENJOJTUSBUJWFǰFYQFOTFTǰGSPNǰUIFǰQBSUTǰPGǰUIFǰųYFEǰBOEǰWBSJBCMFǰ expenses in relation to business expansion this year.

Finance costs in 2013 amounted to Baht 17.3 Million, a net increase from last year of Baht 9.8 Million, or at 130.3%, XIJDIǰXBTǰEVFǰUPǰMPBOTǰGSPNǰUIFǰųOBODJBMǰJOTUJUVUJPOǰUPǰCFǰVTFEǰBTǰXPSLJOHǰDBQJUBMǰBOEǰQBZNFOUTǰPOǰWBSJPVTǰ contents of satellite television channels.

(SPTTǰ1SPųUǰ.BSHJO ǰ/FUǰ1SPųUǰ.BSHJOǰBOEǰ3FUVSOǰ0Oǰ&RVJUZǰ 30&

2011 2012 2013 (SPTTǰ1SPųUǰ.BSHJO 34.1% 37.7% 39.1% /FUǰ1SPųUǰ.BSHJO 6.8% 9.9% 11.3% Return on Equity (ROE) 18.2% 22.8% 27.6%

'SPNǰUBCMFǰTIPXO ǰUIJTǰJOEJDBUFEǰUIFǰ$PNQBOZǰIBTǰBOǰJODSFBTFEǰHSPTTǰQSPųUǰNBSHJO ǰOFUǰQSPųUǰNBSHJO ǰBOEǰSFUVSOǰ on equity comparing to last year. These increments were mainly the result of growth in the satellite television media. Assets

Asset components As at December 31, 2013, the Company had the total assets of Baht 2,986.2 million of which 58.5 % was current assets and 41.5 % was non-current assets.

Total assets in 2013 increased from 2012 by 16.9% which was mainly caused by increasing cash and cash equivalent at 82.4% which came from cash from operating activity. Moreover, land, building and equipment increased 19.5% GSPNǰJOWFTUNFOUǰNBJOMZǰJOǰPQFSBUJOHǰFRVJQNFOU ǰPGųDFǰEFDPSBUJPOǰBOEǰFRVJQNFOUǰ0UIFSǰOFUǰBDDPVOUǰSFDFJWBCMFTǰ increased 15.8% in response with increased revenue and intangible assets – net increased 12.0% from the sport copyrights payment during the year. MEDIA REVOLUTIONIST 119

Quality of the Assets Account receivables - other - net

(Million Baht) 2011 2012 2013 Accounts receivable- Others-net Not Due 325.3 387.7 487.7 Over Due : Less than 3 months 232.0 184.2 240.9 3 - 6 months 54.3 41.7 8.8 6 - 12 months 5.8 37.8 18.5 More than 12 months 62.0 54.5 36.2 Total 679.4 705.9 792.1 Less Allowance for doubtful accounts (53.3) (52.9) (35.9) Total Accounts receivable Others-net 626.1 653.0 756.2 Accounts receivable Turnover (time) 4.90 4.35 4.81 Average Debt Collection Period (day) 75 84 76

As at December 31, 2011, 2012, and 2013, the Company had net account receivables from person or juristic person at amount of Baht 626.1 million, Baht 635.0 million, and Baht 756.2 million respectively. Amount of the increased account receivables in 2013 was because the Company had business expansion and higher income, thus, the account receivables had increased which was mainly from account receivables from normal trading activities in which the Company might have agreement in collecting some advanced payments, or giving the average credit terms in the period of 60 – 90 days depending on the type of products or services.

Consideration from the table of aging periods, most of the outstanding overdue payments over 80% were not due or less than 3 months overdue which were within the credit allowance of the Company. Moreover, the average trade receivables turnover ratio from the last 3 years was at 4 - 5 times which had the average collection period of 75 - 85 days and was close to the average credit term policy of the Company at about 60 - 90 days.

The Company had policy in recording allowance for doubtful accounts for customer with overdue payment JOǰPSEFSǰUPǰSFŴFDUǰPOǰSJTLǰPGǰVOQBJEǰEFCUǰ$POTJEFSBUJPOǰXPVMEǰCFǰVTFEǰPOǰUPUBMǰBNPVOUǰPGǰVOQBJEǰBDDPVOUǰPGǰ customer who might have payment problem and problem in debt collection by considering on the total amount of debts unpaid to the Company.

However, the Company had strict debt collection with debtors and would constantly reviewed on allowance for EPVCUGVMǰBDDPVOUTǰJOǰFWFSZǰBDDPVOUJOHǰQFSJPETǰJOǰPSEFSǰUPǰSFŴFDUǰUIFǰSFNBJOJOHǰBDDPVOUǰSFDFJWBCMFTǰJOǰUIFǰųOBODJBMǰ statement with the expected receiving amount. In 2011, 2012 and 2013, average allowance for doubtful accounts was at 5% - 8% of account receivables. 120 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Inventory - net

(Million Baht) 2011 2012 2013 Inventories 68.1 173.7 84.0 (Less) Allowance for decline in value of inventory (30.7) (33.1) (20.7) Inventories - net 37.4 140.6 63.3 Inventory Turnover (time) 24.65 14.49 16.37 Average Number of Days Sales (day) 15 26 23

As at December 31, 2011, 2012, and 2013, the Company’s net inventory amounted to Baht 37.4 million, 140.6 million, and 63.3 million respectively as the remaining inventory in 2013 decreased from 2012 was mainly from selling of the satellite signal receiver “Sun Box”.

At the end of 2013, main inventory consisted of product type of musical discs i.e. CD, VCD, and DVD at 25%, work in progress such as drama, concert, and marketing activity, and contract production, etc., at 55%, and the satellite signal receiver “Sun Box” at 15%.

The above table indicated that the Company’s average sales period for the last 3 years was at 15 - 30 days as majority of work in progress did not have a long period of delivery time such as drama, concert, and marketing activity, etc. Moreover, the Company had the policy in managing inventory at suitable level as well as controlling the level of products to be at the suitable requirement of consumers. For the unsold and remaining inventory in the warehouse, or work in progress with long delivery period, the Company had policy in constantly reviewing UIFǰFYQFDUFEǰOFUǰWBMVFǰPGǰJOWFOUPSZǰJOǰFWFSZǰBDDPVOUJOHǰQFSJPETǰJOǰPSEFSǰUPǰSFŴFDUǰUIFǰSFBMǰFYQFDUFEǰWBMVFǰGPSǰ sale in accordance with the ever changing economic and market situations. In the year 2011, 2012, and 2013, the Company had average allowance for inventory at 20% - 45% of total remaining inventory which was mainly for product type of musical discs i.e. CD, VCD, and DVD.

Intangible assets - net

(Million Baht) 2011 2012 2013 Intangible assets 739.0 924.9 1,031.1 (Less) Allowance for impairment of assets (269.8) (281.6) (310.3) Intangible assets - net 469.2 643.3 720.8

As at December 31, 2011, 2012, and 2013, the Company’s net intangible assets were Baht 469.2 million, Baht 643.3 million, and Baht 720.8 million respectively as value of the intangible assets in 2013 increased from 2012 was mainly from payment for sport copyrights. MEDIA REVOLUTIONIST 121

At the end of 2013, the intangible assets consisted of sport copyrights of more than 50% while the remaining was from copyrights of movies, dramas, etc.

From the above table, allowance for impairment at the end of 2011, 2012, and 2013 amounted to Baht 269.8 million, Baht 281.6 million, and 310.3 million respectively which came mainly from copyrights of music, and movies with long duration of time. The Company had the policy to constantly review the expected net value in every BDDPVOUJOHǰQFSJPETǰJOǰPSEFSǰUPǰSFEVDFǰSJTLǰGSPNǰWBMVFǰTIPXOǰJOǰUIFǰųOBODJBMǰTUBUFNFOUǰUIBUǰNJHIUǰCFǰIJHIFSǰUIBOǰ BDUVBMǰSFDFJWJOHǰWBMVFǰJOǰBDDPSEBODFǰXJUIǰUIFǰFDPOPNJDǰCFOFųUTǰFYQFDUFEǰUPǰCFǰSFDFJWFEǰJOǰUIFǰGVUVSF Liquidity

$BTIǰŴPX

(Million Baht) 2011 2012 2013 Cash Flows From Operating Activities 237.1 211.9 984.3 Cash Flows From Investing Activities (357.2) (388.0) (467.9) Cash Flows From Financing Activities 37.8 207.8 (257.8) Net Increase (Decrease) in Cash and cash equivalents (82.2) 31.7 258.5 Cash and cash equivalents at the ending of the year 282.2 313.6 572.1

For the year ending December 31, 2013, the Company’s net cash and cash equivalents was at Baht 572.1 million, BOǰJODSFBTFǰPGǰ#BIUǰǰNJMMJPOǰDPNQBSJOHǰUPǰUIFǰQSFWJPVTǰZFBSǰ5IFǰSFBTPOǰGPSǰJODSFBTFǰJOǰDBTIǰŴPXǰGSPNǰ operating activities was from improved operating performance during the year.

However, in 2013, the Company had invested in the intangible assets with payments of sport copyrights including JOWFTUNFOUǰJOǰUIFǰPQFSBUJOHǰFRVJQNFOUǰXIJDIǰTIPXFEǰPWFSBMMǰQJDUVSFǰPGǰDBTIǰŴPXǰJOǰUIFǰJOWFTUJOHǰBDUJWJUJFTǰBUǰ#BIUǰ ǰNJMMJPOǰ.PSFPWFS ǰEVSJOHǰUIFǰZFBS ǰQBZNFOUTǰIBEǰCFFOǰQBJEǰGPSǰUIFǰTIPSUǰBOEǰMPOHǰUFSNǰMPBOTǰGSPNǰųOBODJBMǰ institutions, including dividend payment to shareholders, while the Company received payments from the exercise PGǰXBSSBOUTǰ348ǰUIBUǰSFTVMUFEǰJOǰDBTIǰŴPXǰGPSǰųOBODJOHǰBDUJWJUJFTǰBUǰ#BIUǰǰNJMMJPO

Key Liquidity Ratios

(Million Baht) 2011 2012 2013 Liquidity Ratio (time) 1.83 1.39 1.32 Quick Ratio (time) 1.59 1.12 1.20 Average Debt Collection Period (day) 75 84 76 Average Number of Days Sales (day) 15 26 23 Credit Period (day) 42 40 29 Cash Cycle (day) 48 70 70 122 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Overall picture of the Company’s liquidity during the past 3 years showed current assets at higher level than the current liabilities, average debt collection period was in accordance with the Company policy, and product sales or delivery of contracts to customers including debt payments were in accordance with normal business operation PGǰUIFǰ$PNQBOZǰ5IVT ǰUIFǰ$PNQBOZǰFOKPZFEǰDPOUJOVPVTǰDBTIǰŴPXǰBOEǰTVGųDJFOUǰXPSLJOHǰDBQJUBMǰGPSǰCVTJOFTTǰ operations.

However, due to expansion of the media business, the Company had to search for contents to add more variety UPǰUIFǰQSPHSBNTǰ'PSǰDPOUFOUTǰXJUIǰIJHIǰJOWFTUNFOUǰDPTU ǰUIFǰ$PNQBOZǰTPVSDFEǰJUTǰųOBODFǰGSPNǰUIFǰTIPSUǰBOEǰMPOHǰ UFSNǰMPBOTǰGSPNǰųOBODJBMǰJOTUJUVUJPOTǰUIBUǰXFSFǰTVJUBCMFǰUPǰUIFǰUZQFǰPGǰBTTFUTǰJODMVEJOHǰUIFǰVTFǰPGǰUIFǰ$PNQBOZĴTǰ working capital for the operation Sources of Funds

Liabilities, Shareholders’ Equity, and Debt to Equity Ratio

(Million Baht) 2011 2012 2013 4IPSUUFSNǰMPBOTǰGSPNǰųOBODJBMǰJOTUJUVUJPOT - 86.0 - Current portion of long-term loan - 240.0 286.9 Long-term loans - 81.0 - Other current liabilities 664.7 765.6 1,035.3 Other non-current liabilities 33.1 81.0 93.8 Total Liabilities 697.8 1,253.6 1,416.0 Equity attributable to owners of the Company 1,200.8 1,296.2 1,567.3 Debt to Equity Ratio (time) 0.58 0.97 0.90

Total liabilities for 2011, 2012, and 2013 amounted to Baht 697.8 million, 1,253.6 million and Baht 1,416.0 million respectively while the increased liabilities in 2013 when comparing to 2012 were from expenses payable and the unearned revenue which was normal transaction of the Company.

5IFǰTIPSUǰBOEǰMPOHǰUFSNǰMPBOTǰGSPNǰųOBODJBMǰJOTUJUVUJPOTǰJOǰǰXFSFǰNBJOMZǰGSPNǰUIFǰTQPSUǰDPQZSJHIUTĴǰQBZNFOUTǰ and the Company was able to comply with conditions of the loan agreements with all loan payments paid in due times. In 2013, the Company made repayments for short and long term loans totaled Baht 351.0 million.

As at December 31, 2011, 2012, and 2013, the Company’s shareholders’ equity of the majority interest were Baht 1,200.8 million, Baht 1,296.2, and Baht 1,567.3 million respectively. The shareholders’ equity of the majority interest in 2013 increased from the year 2012 due to payments from the exercise of warrants RS-W2 at Baht 148.1 million including the increase from business operation during the year while dividend payment to shareholders was at Baht 271.5 million. MEDIA REVOLUTIONIST 123

From the above statement, majority of the Company’s capital structure came from capital of the shareholders, BOEǰPQFSBUJOHǰQFSGPSNBODFǰPGǰUIFǰ$PNQBOZǰ4PVSDFǰPGǰGVOEǰGSPNǰMPBOTǰUISPVHIǰųOBODJBMǰJOTUJUVUJPOTǰXFSFǰNBJOMZǰ happened from starting of business expansion as it was necessary to have more investment fund. During the past ZFBST ǰUIFǰ$PNQBOZǰXBTǰBCMFǰUPǰNBOBHFǰJUTǰųOBODFǰBOEǰTUSJDUMZǰDPNQMZǰXJUIǰDPOEJUJPOTǰJOǰUIFǰMPBOǰDPOUSBDUT ,FZǰGBDUPSTǰBOEǰJOŴVFODFǰUIBUǰNBZǰBGGFDUǰUIFǰQFSGPSNBODFǰBOEǰųOBODJBMǰQPTJUJPOǰPGǰUIFǰ$PNQBOZǰ in the future During the late 2013, the National Broadcasting and Telecommunication Commission (NBTC) had arranged the auction of frequency band for the service of digital system on the national business services in 4 categories i.e., Ķ$IJMESFO ǰ:PVUIǰBOEǰ'BNJMZķ ǰĶ/FXTǰBOEǰ*OGPSNBUJPOķ ǰĶ(FOFSBMǰXJUIǰ4UBOEBSEǰ%FųOJUJPOǰ 4% ķ BOEǰĶ(FOFSBMǰXJUIǰ )JHIǰ%FųOJUJPOǰ )% ķǰ5IFǰ$PNQBOZǰIBTǰXPO ǰǰDIBOOFM ǰPOǰUIFǰBVDUJPOǰPGǰGSFRVFODZǰCBOEǰGPSǰUIFǰTFSWJDFǰPGǰEJHJUBMǰ TZTUFNǰPOǰUIFǰOBUJPOBMǰCVTJOFTTǰTFSWJDFTǰPGǰUIFǰĶ(FOFSBMǰXJUIǰ4UBOEBSEǰ%FųOJUJPOǰ 4% ǰDBUFHPSZǰGSPNǰUIFǰUPUBMǰǰ channels in the same category. The winning auction value was at Baht 2,265 million with 15 years for the license in using the frequency and license to operate the digital television business from the permission granted date.

By entering into the digital television business, the Company has opened opportunity to expand business for GVSUIFSǰHSPXUIǰ5IFǰ$PNQBOZǰSFBMJ[FTǰUIBUǰUIJTǰUFMFWJTJPOǰDIBOOFMǰXJMMǰQFOFUSBUFǰJOUPǰBVEJFODFTǰJOǰBMMǰQMBUGPSNT ǰ and help in enhancing the revenue earning potential by operating the television media business as well as building long term business stability to the overall business group of the Company. Additionally, this will also increase competitive ability into par with large business operators in the same industry. Moreover, by having own various quality contents such as dramas, movies, television programs and music, etc., personnel with experiences in television media business for a long time, supporting units from programs’ production, artist management, radio stations to units for arrangement of marketing activities, thus, the Company has gain good advantages in business DPNQFUJUJPOǰ5IJTǰPQFOTǰHPPEǰPQQPSUVOJUZǰGPSǰUIFǰ$PNQBOZǰJOǰSFDFJWJOHǰBEEJUJPOBMǰCFOFųUǰBOEǰSFXBSEǰJOǰUIFǰGVUVSF

However, growth in the media business may receive impact from some risks such as risk from political unrest, household spending, allocation of the advertising budget, intense competitive situation in the television media industry, and rapidly changing of the popularity trend and consumers’ behavior, etc. These are factors that may SFŴFDUǰJNQBDUǰUPǰUIFǰPWFSBMMǰQJDUVSFǰPGǰUIFǰUFMFWJTJPOǰNFEJBǰCVTJOFTTǰ5IFǰ$PNQBOZ ǰUIFO ǰSFBMJ[FTǰUIPTFǰSJTLTǰUIBUǰ may occur and has planned measures in dealing with the unusual events, including adjustment of various strategies such as cost management during economic recession, adjustment of the programming chart, changing of program TUZMF ǰFUDǰ#ZǰIBWJOHǰDBQBCMFǰQFSTPOOFMǰXJUIǰMPOHǰFYQFSJFODFTǰJOǰUIFǰNFEJBǰCVTJOFTT ǰUIFǰ$PNQBOZǰJTǰDPOųEFOUǰJOǰ NBOBHJOHǰUIFǰSJTLT ǰBOEǰSFEVDJOHǰJNQBDUTǰUIBUǰNBZǰIBWFǰBOZǰFGGFDUǰPOǰUIFǰCFOFųUǰPGǰUIFǰ$PNQBOZ

Professional Fee a) Audit Fee RS Group of Companies paid the audit fee for the year 2013 and 2012 in the amounts of Baht 2.7 million and Baht 2.5 million respectively. b) Others (Non-Audit Fee) - None - 124 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 17 Financial Statement MEDIA REVOLUTIONIST 125

Independent Auditor’s Report

To the Shareholders of RS Public Company Limited

*ǰIBWFǰBVEJUFEǰUIFǰBDDPNQBOZJOHǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰPGǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰBOEǰJUTǰ subsidiaries, and of RS Public Company Limited, respectively, which comprise the consolidated and separate statement of ųOBODJBMǰQPTJUJPOǰBTǰBUǰ%FDFNCFSǰ ǰ ǰUIFǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰTUBUFNFOUTǰPGǰDPNQSFIFOTJWFǰJODPNF ǰDIBOHFTǰ JOǰFRVJUZǰBOEǰDBTIǰŴPXTǰTUBUFNFOUTǰGPSǰUIFǰZFBSǰUIFOǰFOEFE ǰBOEǰBǰTVNNBSZǰPGǰTJHOJųDBOUǰBDDPVOUJOHǰQPMJDJFTǰBOEǰPUIFSǰ notes. Management’s Responsibility for the Consolidated and Separate Financial Statements .BOBHFNFOUǰJTǰSFTQPOTJCMFǰGPSǰUIFǰQSFQBSBUJPOǰBOEǰGBJSǰQSFTFOUBUJPOǰPGǰUIFTFǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰ in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary UPǰFOBCMFǰUIFǰQSFQBSBUJPOǰPGǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰUIBUǰBSFǰGSFFǰGSPNǰNBUFSJBMǰNJTTUBUFNFOU ǰ whether due to fraud or error.

Auditor’s Responsibility .ZǰSFTQPOTJCJMJUZǰJTǰUPǰFYQSFTTǰBOǰPQJOJPOǰPOǰUIFTFǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰCBTFEǰPOǰNZǰBVEJUǰ*ǰ conducted my audit in accordance with Thai Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate ųOBODJBMǰTUBUFNFOUTǰBSFǰGSFFǰGSPNǰNBUFSJBMǰNJTTUBUFNFOU

"OǰBVEJUǰJOWPMWFTǰQFSGPSNJOHǰQSPDFEVSFTǰUPǰPCUBJOǰBVEJUǰFWJEFODFǰBCPVUǰUIFǰBNPVOUTǰBOEǰEJTDMPTVSFTǰJOǰUIFǰųOBODJBMǰ statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material NJTTUBUFNFOUǰPGǰUIFǰųOBODJBMǰTUBUFNFOUT ǰXIFUIFSǰEVFǰUPǰGSBVEǰPSǰFSSPSǰ*OǰNBLJOHǰUIPTFǰSJTLǰBTTFTTNFOUT ǰUIFǰBVEJUPSǰ DPOTJEFSTǰJOUFSOBMǰDPOUSPMǰSFMFWBOUǰUPǰUIFǰFOUJUZĴTǰQSFQBSBUJPOǰBOEǰGBJSǰQSFTFOUBUJPOǰPGǰUIFǰųOBODJBMǰTUBUFNFOUTǰJOǰPSEFSǰUPǰ design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation PGǰUIFǰųOBODJBMǰTUBUFNFOUT

*ǰCFMJFWFǰUIBUǰUIFǰBVEJUǰFWJEFODFǰ*ǰIBWFǰPCUBJOFEǰJTǰTVGųDJFOUǰBOEǰBQQSPQSJBUFǰUPǰQSPWJEFǰBǰCBTJTǰGPSǰNZǰBVEJUǰPQJOJPO

Opinion In my opinion, the consolidated and separate financial statements referred to above fairly, in all material respects, the financial position as at December 31, 2013, and the financial performance and cash flows for the year then ended of RS Public Company Limited and its subsidiaries, and of RS Public Company Limited, respectively, in accordance with Thai Financial Reporting Standards.

Other matter 8JUIPVUǰRVBMJGZJOHǰNZǰPQJOJPO ǰ*ǰESBXǰBUUFOUJPOǰUPǰOPUFTǰǰBOEǰǰUPǰUIFǰųOBODJBMǰTUBUFNFOUTǰEFTDSJCJOHǰUIFǰFGGFDUǰPGǰUIFǰ $PNQBOZǰBOEǰJUTǰTVCTJEJBSJFTǰBEPQUJPOǰGSPNǰ+BOVBSZǰ ǰǰPGǰDFSUBJOǰOFXǰBDDPVOUJOHǰQPMJDJFTǰ5IFǰDPSSFTQPOEJOHǰųHVSFTǰ QSFTFOUFEǰBSFǰCBTFEǰPOǰUIFǰBVEJUFEǰųOBODJBMǰTUBUFNFOUTǰBTǰBUǰBOEǰGPSǰUIFǰZFBSǰFOEFEǰ%FDFNCFSǰ ǰǰBGUFSǰNBLJOHǰUIFǰ adjustments described in notes 4.

(Wimolsri Jongudomsombut) $FSUJųFEǰ1VCMJDǰ"DDPVOUBOU Registration No. 3899 Karin Audit Company Limited Bangkok February 26, 2014 126 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED G 6HSDUDWH 'HFHPEHU 'HFHPEHU -DQXDU\ W %DK &RQVROLGDWHG UBUFNFOUT 'HFHPEHU 'HFHPEHU -DQXDU\ 1RWHV 5HVWDWHG 5HVWDWHG 5HVWDWHG 5HVWDWHG Q V QWK LJLWDOWHOHYLVLR G W H W W W H W V V W V V W V G W W 5HODWHGSDUWLHVQH 7RWDO&XUUHQW$VVHW 7RWDO1RQ&XUUHQW$VVHW 2WKHUVQH 5IFǰBDDPNQBOZJOHǰOPUFTǰBSFǰBOǰJOUFHSBMǰQBSUǰPGǰUIFTFǰųOBODJBMǰT 5638%/,&&203$1

5638%/,&&203$1

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

(DUQLQJVSHUVKDUH 2ZQHURIWKH&RPSDQ\ %DKW 1XPEHURIRUGLQDU\VKDUHV 6KDUHV

'LOXWHGHDUQLQJVSHUVKDUH 2ZQHURIWKH&RPSDQ\ %DKW :HLJKWHGDYHUDJHQXPEHURIGLOXWHGRUGLQDU\VKDUHV 6KDUHV

5IFǰBDDPNQBOZJOHǰOPUFTǰBSFǰBOǰJOUFHSBMǰQBSUǰPGǰUIFTFǰųOBODJBMǰTUBUFNFOUT 130 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED (TXLW\DWWULEXWDEOH UHVHUYH 8QDSSURSULDWHG 7UHDVXU\VKDUH 5HWDLQHGHDUQLQJV GHILFLWV $SSURSULDWHG %DKW /HJDOUHVHUYH &RQVROLGDWHG $GYDQFHUHFHLSWV WRRZQHUVRI 1RQ&RQWUROOLQJ IRUVKDUHVXEVFULSWLRQ WKH&RPSDQ\ LQWHUHVWV 7RWDO SXUFKDVHSULFHRI 'LIIHUHQFHEHWZHHQWKH XQGHUFRPPRQFRQWURO DQGWKHLUQHWERRNYDOXH LQYHVWPHQWLQVXEVLGLDULHV UBUFNFOUT 3DLGXS 3UHPLXPRQ 7UHDVXU\ ,VVXHGDQG 1RWHV 6KDUH&DSLWDO 6KDUH&DSLWDO VKDUHV DVUHSRUWHG UHVWDWHG 5IFǰBDDPNQBOZJOHǰOPUFTǰBSFǰBOǰJOUFHSBMǰQBSUǰPGǰUIFTFǰųOBODJBMǰT 5638%/,&&203$1

5638%/,&&203$1

5IFǰBDDPNQBOZJOHǰOPUFTǰBSFǰBOǰJOUFHSBMǰQBSUǰPGǰUIFTFǰųOBODJBMǰTUBUFNFOUT MEDIA REVOLUTIONIST 133

5638%/,&&203$1

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

5IFǰBDDPNQBOZJOHǰOPUFTǰBSFǰBOǰJOUFHSBMǰQBSUǰPGǰUIFTFǰųOBODJBMǰTUBUFNFOUT 134 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

5638%/,&&203$1

,QWKHVHFRQGTXDUWHURIWKH&RPSDQ\KDVVROGVRPHLQYHVWPHQW LQVKDUHRI567HOHYLVLRQ&R/WG 3URFHHGVIURPVDOHVRILQYHVWPHQWLQVXEVLGLDU\ZDVDVIROORZV 6HH1RWHDQG &DVKUHFHLYDEOHIURPVDOHVRILQYHVWPHQWLQVXEVLGLDU\ /HVV &DVKDQGFDVKHTXLYDOHQWV 1HW /HVV 2WKHUDVVHWVOHVVRWKHUOLDELOLWLHV /HVV 5HFODVVLILHGWRLQYHVWPHQWLQDVVRFLDWHGFRPSDQ\E\XVLQJ ERRNYDOXHDWGDWHRIVDOHRILQYHVWPHQW

,QWKHIRXUWKTXDUWHURIWKH&RPSDQ\KDVSXUFKDVHVRPHLQYHVWPHQW LQVKDUHRI567HOHYLVLRQ&R/WG 3URFHHGVIURPSXUFKDVHRILQYHVWPHQWLQVXEVLGLDU\ZDVDVIROORZV 6HH1RWHDQG &DVKIRUSXUFKDVHRILQYHVWPHQWLQVXEVLGLDU\ $GG &DVKDQGFDVKHTXLYDOHQWV 1HW $GG 2WKHUDVVHWVOHVVRWKHUOLDELOLWLHV %RRNYDOXHDWGDWHRISXUFKDVHRILQYHVWPHQW

5IFǰBDDPNQBOZJOHǰOPUFTǰBSFǰBOǰJOUFHSBMǰQBSUǰPGǰUIFTFǰųOBODJBMǰTUBUFNFOUT MEDIA REVOLUTIONIST 135

5638%/,&&203$1

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uV VKDUH RI SURILW RU ORVV DQG RWKHU FRPSUHKHQVLYH LQFRPH RI HTXLW\ DFFRXQWHGLQYHVWHHVIURPWKHGDWHWKDWVLJQLILFDQWLQIOXHQFHFRPPHQFHVXQWLOWKHGDWHWKDWVLJQLILFDQWLQIOXHQFHFHDVHV:KHQWKH *URXSuV VKDUH RI ORVVHV H[FHHGV LWV LQWHUHVW LQ DQ HTXLW\ DFFRXQWHG LQYHVWHH WKH *URXSu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uVLQWHUHVWLQWKHLQYHVWHH8QUHDOLVHGORVVHVDUH HOLPLQDWHGLQWKHVDPHZD\DVXQUHDOLVHGJDLQVEXWRQO\WRWKHH[WHQWWKDWWKHUHLVQRHYLGHQFHRILPSDLUPHQW 136 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

7KHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVFRPSULVHWKHILQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDVIROORZV 5DWHRI6KDUHKROGLQJ &RPSDQ\1DPH 1DWXUHRI%XVLQHVV 2SHUDWLQJVXEVLGLDULHV .0DVWHU&R/WG 6HUYLFHSURYLGHUDQGRUJDQL]HU

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u0HHWLQJRI&RROLVP&R/WG )RUPHUO\6N\+LJK1HWZRUN&R/WG KHOGRQ0DUFK SDVVHGWKHUHVROXWLRQWRFKDQJHRILWVQDPHWR&RROLVP&R/WGDVUHJLVWHUHGZLWKWKH0LQLVWU\RI&RPPHUFH 7KH([WUDRUGLQDU\6KDUHKROGHUVu0HHWLQJ1RRI3RHPD&2/WG VXEVLGLDU\ KHOGRQ$XJXVWSDVVHG WKHUHVROXWLRQWRGHFUHDVHWKHVKDUHFDSLWDOIURP%DKWPLOOLRQWR%DKWPLOOLRQE\UHGXFLQJIURPVKDUHV DWWKHSDUYDOXHRI%DKWSHUVKDUHWRVKDUHVDWWKHSDUYDOXHRI%DKWSHUVKDUH7KHGHFUHDVHRIVKDUH FDSLWDOZDVUHJLVWHUHGZLWKWKH0LQLVWU\RI&RPPHUFHRQ2FWREHU 7KH ([WUDRUGLQDU\ 6KDUHKROGHUVu 0HHWLQJ RI /D]HUIDFH 5HFRUGV &R /WG KHOG RQ 1RYHPEHU SDVVHG WKH UHVROXWLRQWROLTXLGDWHWKLVVXEVLGLDU\FRPSDQ\

%$6,62)35(3$5$7,212)7+(),1$1$&,$/67$7(0(176 6WDWHPHQWRIFRPSOLDQFH 7KH ILQDQFLDO VWDWHPHQWV DUH SUHSDUHG LQ DFFRUGDQFH ZLWK 7KDL )LQDQFLDO 5HSRUWLQJ 6WDQGDUGV v7)56w LQFOXGLQJ UHODWHGLQWHUSUHWDWLRQVDQGJXLGHOLQHVSURPXOJDWHGE\WKH)HGHUDWLRQRI$FFRXQWLQJ3URIHVVLRQV )$3 DSSOLFDEOHUXOHV DQGUHJXODWLRQVRIWKH7KDL6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ 7KHILQDQFLDOVWDWHPHQWVLVVXHGIRU7KDLVWDWXWRU\DQGUHJXODWRU\UHSRUWLQJSXUSRVHVDUHSUHSDUHGLQWKH7KDLODQJXDJH 7KHVH(QJOLVKODQJXDJHILQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGIURPWKH7KDLODQJXDJHVWDWXWRU\ILQDQFLDOVWDWHPHQWV 7KH)$3KDVLVVXHGWKHIROORZLQJQHZDQGUHYLVHG7)56DQG$QQRXQFHPHQWVUHOHYDQWWRWKH*URXSuVRSHUDWLRQVDQG HIIHFWLYHIRUDFFRXQWLQJSHULRGVEHJLQQLQJRQRUDIWHU-DQXDU\ 7$6 7RSLF 7$6 ,QFRPH7D[HV 7$6 5HYLVHG $FFRXQWLQJIRU*RYHUQPHQW*UDQWVDQG'LVFORVXUHRI*RYHUQPHQW$VVLVWDQFH 7$6 5HYLVHG 7KH(IIHFWVRI&KDQJHVLQ)RUHLJQ([FKDQJH5DWHV 7)56 2SHUDWLQJ6HJPHQWV 76,& *RYHUQPHQW$VVLVWDQFH1R6SHFLILF5HODWLRQWR2SHUDWLQJ$FWLYLWLHV 138 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

7$6 7RSLF 76,& ,QFRPH7D[HV5HFRYHU\RI5HYDOXHG1RQ'HSUHFLDEOH$VVHWV 76,& ,QFRPH7D[HV&KDQJHVLQWKH7D[6WDWXVRIDQ(QWLW\RULWV6KDUHKROGHUV )$3$QQRXQFHPHQW $FFRXQWLQJJXLGDQFHIRU7UDQVIHUVRI)LQDQFLDO$VVHWV 7KH DGRSWLRQ RI WKHVH QHZ DQG UHYLVHG 7)56 DQG )$3 $QQRXQFHPHQWV KDV UHVXOWHG LQ FKDQJHV LQ WKH *URXSuV DFFRXQWLQJSROLFLHV7KHHIIHFWVRIWKHVHFKDQJHVDUHGLVFORVHGLQQRWH ,QDGGLWLRQWRWKHDERYHQHZDQGUHYLVHG7)56DQG$QQRXQFHPHQWVDVDW'HFHPEHUWKH)$3KDGLVVXHGD QXPEHURIQHZLQWHUSUHWDWLRQVDQGKDVQRWDGRSWHGWKHQHZDQGUHYLVHG7)56WKDWKDYHEHHQLVVXHGDVRIWKHUHSRUWLQJ GDWHEXWDUHQRW\HWHIIHFWLYH7KRVHQHZDQGUHYLVHG7)56WKDWDUHDSSOLFDEOHWRWKH*URXSuV&RPSDQ\uVRSHUDWLRQV ZKLFK EHFRPH HIIHFWLYH IRU DQQXDO ILQDQFLDO SHULRGV EHJLQQLQJ RQ RU DIWHU -DQXDU\ LQ WKH \HDU LQGLFDWHG LQ WKH IROORZLQJWDEOHDUHDVIROORZVZKLFKDUHHIIHFWLYHIRUILQDQFLDO 7)56 7RSLF

7)56 7RSLF

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

F 3UHVHQWDWLRQRILQIRUPDWLRQRQRSHUDWLQJVHJPHQWV )URP-DQXDU\WKH*URXSKDVDGRSWHG7)562SHUDWLQJ6HJPHQWV7KHQHZSROLF\IRUSUHVHQWDWLRQRILQIRUPDWLRQ RQRSHUDWLQJVHJPHQWVWRJHWKHUZLWKLQIRUPDWLRQRQWKHSUHYLRXVSROLF\LVJLYHQEHORZ7KHQHZSROLF\KDVEHHQDSSOLHG UHWURVSHFWLYHO\ DQG VHJPHQW LQIRUPDWLRQ LQFOXGHG LQ WKH ILQDQFLDO VWDWHPHQWV IRU WKH \HDU HQGHG 'HFHPEHU ZKLFKDUHLQFOXGHGLQWKH*URXSuVILQDQFLDOVWDWHPHQWVIRUFRPSDUDWLYHSXUSRVHVKDVEHHQUHSUHVHQWHGDFFRUGLQJO\ 7KH FKDQJH LQ SROLF\ RQO\ LPSDFWV SUHVHQWDWLRQDO DVSHFWV DQG KDV QR LPSDFW RQ WKH *URXSuV UHSRUWHG DVVHWV OLDELOLWLHV UHVXOWVRUHDUQLQJVSHUVKDUH 7)56LQWURGXFHVWKHvPDQDJHPHQWDSSURDFKwWRVHJPHQWUHSRUWLQJ,WUHTXLUHVDFKDQJHLQWKHSUHVHQWDWLRQDQGGLVFORVXUH RIVHJPHQWLQIRUPDWLRQEDVHGRQWKHLQWHUQDOUHSRUWVUHJXODUO\UHYLHZHGE\WKH*URXSuV&KLHI2SHUDWLQJ'HFLVLRQ0DNHULQ RUGHUWRDVVHVVHDFKVHJPHQWuVSHUIRUPDQFHDQGWRDOORFDWHUHVRXUFHVWRWKRVHVHJPHQWV3UHYLRXVO\WKH*URXSSUHVHQWHG VHJPHQWLQIRUPDWLRQLQUHVSHFWRILWVEXVLQHVVDQGJHRJUDSKLFDOVHJPHQWVLQDFFRUGDQFHZLWK7$66HJPHQW5HSRUWLQJ 7KHFKDQJHLQEDVLVRISUHVHQWDWLRQDQGGLVFORVXUH RIVHJPHQWLQIRUPDWLRQKDVKDGQRVLJQLILFDQWHIIHFWRQWKHVHJPHQW LQIRUPDWLRQUHSRUWHGLQWKH*URXSuVILQDQFLDOVWDWHPHQWV

6,*1,),&$17$&&2817,1*32/,&,(6

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y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

,QWDQJLEOHDVVHWV ,QWDQJLEOHDVVHWVZLWKILQLWHOLYHVDUHDPRUWLVHGRQDV\VWHPDWLFEDVLVRYHUWKH XVHIXOHFRQRPLFXVHIXOOLIHDQGWHVWHGIRU LPSDLUPHQW ZKHQHYHU WKHUH LV DQ LQGLFDWLRQ WKDW WKH LQWDQJLEOH DVVHW PD\ EH LPSDLUHG 7KH DPRUWLVDWLRQ SHULRG DQG WKH DPRUWLVDWLRQPHWKRGRIVXFKLQWDQJLEOHDVVHWVDUHUHYLHZHGDWOHDVWDWHDFKILQDQFLDO\HDUHQG7KHDPRUWLVDWLRQH[SHQVHLV FKDUJHGWRWKH6WDWHPHQWRIFRPSUHKHQVLYHLQFRPH $VXPPDU\RIWKHLQWDQJLEOHDVVHWVZLWKILQLWHXVHIXOOLYHVLVDVIROORZV &RS\ULJKWVRIFHUWDLQVKRZDUHDPRUWL]HGE\SURSRUWLRQDWHRIUHYHQXHJHQHUDWHGZLWKLQJUDQWHGSHULRG 6RIWZDUHDUHDPRUWL]HGRQWKHEDVLVRIHVWLPDWHGXVHIXOOLYHVRI\HDUV 144 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

2WKHUVFRS\ULJKWVDUHDPRUWLVHGRQDVWUDLJKWOLQHEDVLVRYHUWKHWHUPRIWKHDJUHHPHQW ,QWDQJLEOHDVVHWVZLWKLQGHILQLWHXVHIXOOLYHVDUHQRWDPRUWLVHGEXWDUHWHVWHGIRULPSDLUPHQWDQQXDOO\HLWKHULQGLYLGXDOO\RUDW WKHFDVKJHQHUDWLQJXQLWOHYHO7KHDVVHVVPHQWRILQGHILQLWHOLIHLVUHYLHZHGDQQXDOO\ ,QWDQJLEOHDVVHWZLWKLQGHILQLWHXVHIXOOLYHVLVWKH&RS\ULJKWRIPXVLFDOPDVWHUWDSH&RS\ULJKWRIGUDPD&RS\ULJKWRIILOPV ,PSDLUPHQW 7KH FDUU\LQJ DPRXQWV RI WKH &RPSDQ\uV DVVHWV DUH UHYLHZHG DW HDFK UHSRUWLQJ GDWH WR GHWHUPLQH ZKHWKHU WKHUH LV DQ\LQGLFDWLRQRILPSDLUPHQW,IDQ\VXFKLQGLFDWLRQH[LVWVWKHDVVHWVu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uVYDOXHLQXVHDQGIDLUYDOXHOHVVFRVWVWRVHOO ,QDVVHVVLQJYDOXHLQXVHWKHHVWLPDWHGIXWXUHFDVKIORZVDUHGLVFRXQWHGWRWKHLUSUHVHQWYDOXHXVLQJDSUHWD[GLVFRXQWUDWH WKDWUHIOHFWVFXUUHQWPDUNHWDVVHVVPHQWVRIWKHWLPHYDOXHRIPRQH\DQGWKHULVNVVSHFLILFWRWKHDVVHW)RUDQDVVHWWKDW GRHVQRWJHQHUDWHFDVKLQIORZVODUJHO\LQGHSHQGHQW RIWKRVHIURPRWKHUDVVHWVWKHUHFRYHUDEOHDPRXQW LVGHWHUPLQHGIRU WKHFDVKJHQHUDWLQJXQLWWRZKLFKWKHDVVHWEHORQJV 5HYHUVDOVRILPSDLUPHQW ,PSDLUPHQWORVVHVUHFRJQLVHGLQSULRUSHULRGVLQUHVSHFWRIRWKHUQRQILQDQFLDODVVHWVDUHDVVHVVHGDWHDFKUHSRUWLQJGDWH IRUDQ\LQGLFDWLRQVWKDWWKHORVVKDVGHFUHDVHGRUQRORQJHUH[LVWV$QLPSDLUPHQWORVVLVUHYHUVHGLIWKHUHKDVEHHQDFKDQJH LQWKHHVWLPDWHVXVHGWRGHWHUPLQHWKHUHFRYHUDEOHDPRXQW$QLPSDLUPHQWORVVLVUHYHUVHGRQO\WRWKHH[WHQWWKDWWKHDVVHWuV FDUU\LQJDPRXQWGRHVQRWH[FHHGWKHFDUU\LQJDPRXQWWKDWZRXOGKDYHEHHQGHWHUPLQHGQHWRIGHSUHFLDWLRQRUDPRUWLVDWLRQLI QRLPSDLUPHQWORVVKDGEHHQUHFRJQLVHG 7UDGHDQGRWKHUDFFRXQWVSD\DEOH 7UDGHDQGRWKHUDFFRXQWVSD\DEOHDUHVWDWHGDWFRVW (PSOR\HHEHQHILWV 3RVWHPSOR\PHQW EHQHILW SODQ RWKHU WKDQ D GHILQHG FRQWULEXWLRQ SODQ 7KH &RPSDQ\uV REOLJDWLRQ LQ UHVSHFW RI SRVW HPSOR\PHQW EHQHILWV XQGHU GHILQHG EHQHILW SODQV UHFRJQL]HG LQ WKH ILQDQFLDO VWDWHPHQWV EDVHG RQ FDOFXODWLRQV E\ WKH LQGHSHQGHQW DFWXDU\ XVLQJ WKHSURMHFWHG XQLW FUHGLW PHWKRG HVWLPDWLQJ WKH DPRXQW RI IXWXUH EHQHILW WKDW HPSOR\HHV KDYH HDUQHGLQUHWXUQIRUWKHLUVHUYLFHLQWKHFXUUHQWDQGSULRUSHULRGVWKDWEHQHILWLVGLVFRXQWHGWRGHWHUPLQHLWVSUHVHQWYDOXH MEDIA REVOLUTIONIST 145

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v6XUSOXVRQWUHDVXU\VKDUHVw 1HWGHILFLWVRQVDOHRUFDQFHOODWLRQRIWUHDVXU\VKDUHVDUHGHELWHGWR UHWDLQHGHDUQLQJVDIWHUVHWWLQJRIIDJDLQVWDQ\UHPDLQLQJEDODQFHRIVXUSOXVRQWUHDVXU\VKDUHVDQGWKHUHVHUYHIRUWUHDVXU\ VKDUHVDUHFUHGLWHGDWWKHHTXLYDOHQWDPRXQWWRWKHFRVWRIVKDUHGVROGEDFNWRUHWDLQHGHDUQLQJV 146 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

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

5HYHQXHIURPILOPV 5HYHQXHIURPILOPVUHSUHVHQWVWKHUHYHQXHIURPER[RIILFHVKDULQJEHWZHHQFLQHPDuVRZQHUFRS\ULJKWDQGVDOHVRI VSRQVRUVKLS 5HYHQXHIURPER[RIILFHVKDULQJEHWZHHQFLQHPDu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u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uV&RPSDQ\u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ySHUDQQXP 5HQWDODQGFRPPRQVHUYLFHIHHuVXQLWSULFHDUHFRPSDUDEOHWRWKHPDUNHWSULFHVXUYH\RIUHQWDODQGFRPPRQVHUYLFHIHH 150 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

6LJQLILFDQWEDODQFHVDWHDFK6WDWHPHQWRIILQDQFLDOSRVLWLRQGDWHDQGWUDQVDFWLRQVIRU\HDUVHQGHG'HFHPEHUDQG ZLWKUHODWHGSDUWLHVZHUHDVIROORZV 0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 'HFHPEHU 'HFHPEHU 'HFHPEHU 'HFHPEHU 7UDGHDFFRXQWVUHFHLYDEOH 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG 7KDL&RS\ULJKW&ROOHFWLRQ&R/WG

0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 'HFHPEHU 'HFHPEHU 'HFHPEHU 'HFHPEHU

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

0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 'HFHPEHU 'HFHPEHU 'HFHPEHU 'HFHPEHU $GYDQFH 6XEVLGLDULHVFRPSDQ\ 1DJDVLD&R/WG $YDQW&R/WG 56LDP&R/WG 566SRUWPDVWHU&R/WG 56)LOPDQG'LVWULEXWLRQ&R/WG 567HOHYLVLRQ&R/WG 7RWDO $FFUXHGLQFRPH 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG &RROLVP&R/WG )RUPHUO\6N\+LJK1HWZRUN&R/WG

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

0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 'HFHPEHU 'HFHPEHU 'HFHPEHU 'HFHPEHU 0RYHPHQWRIORDQVIURP %HJLQQLQJEDODQFH ,QFUHDVHGXULQJIRUWKH\HDUV 3DLGGXULQJIRUWKH\HDUV (QGLQJEDODQFH 8QHDUQHGUHYHQXHV 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG 7KDL&RS\ULJKW&ROOHFWLRQ&R/WG 7RWDO $FFUXHGLQWHUHVWH[SHQVH $VVRFLDWHGFRPSDQ\ ,GHD3RZHU&R/WG 7RWDO $FFUXHGH[SHQVHV 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG 7KDL&RS\ULJKW&ROOHFWLRQ&R/WG 7RWDO MEDIA REVOLUTIONIST 155

7KH&RPSDQ\uVILQDQFLDOVWDWHPHQWVLQFOXGHVLJQLILFDQWWUDQVDFWLRQVEHWZHHQWKH&RPSDQ\DQGVXEVLGLDULHVIRUHDFKRIWKH \HDUVHQGHG'HFHPEHUDQGDVIROORZV 0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 5HYHQXHIURPPHGLD 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG

0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 2WKHULQFRPH 5HYHQXHIURPPDQDJHPHQWVHUYLFH 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG 7KDL&RS\ULJKW&ROOHFWLRQ&R/WG

0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH 2WKHULQFRPH 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG 7KDL&RS\ULJKW&ROOHFWLRQ&R/WG

6HOOLQJDQGDGPLQLVWUDWLRQH[SHQVHV 6XEVLGLDULHVFRPSDQ\ .0DVWHU&R/WG

0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH

)LQDQFHFRVWVLQWHUHVWSD\DEOH 6XEVLGLDULHVFRPSDQ\ 7KDL&RS\ULJKW&ROOHFWLRQ&R/WG &RROLVP&R/WG )RUPHUO\ 6N\+LJK1HWZRUN&R/WG 56,Q6WRUH0HGLD&R/WG 56,QWHUQDWLRQDO%URDGFDVWLQJDQG6SRUW 0DQDJHPHQW&R/WG 3RHPD&R/WG $ODGGLQ+RXVH&R/WG 1DJDVLD&R/WG %OX)DLU\&R/WG $YDQW&R/WG '0HGLDDQG3URGXFWLRQ&R/WG 56LDP&R/WG %DQJNRN2UJDQL]HU&R/WG 567HOHYLVLRQ&R/WG $VVRFLDWHGFRPSDQ\ ,GHD3RZHU&R/WG 7RWDOILQDQFHFRVWVLQWHUHVWSD\DEOH

.H\PDQDJHPHQWSHUVRQQHOFRPSHQVDWLRQ 6KRUWWHUPHPSOR\HHEHQHILW /RQJWHUPHPSOR\HHEHQHILW 7RWDONH\PDQDJHPHQWSHUVRQQHOFRPSHQVDWLRQ

&$6+$1'&$6+(48,9$/(176 %DKW &RQVROLGDWHG 6HSDUDWH &DVKRQKDQG 'HSRVLWDWEDQN +LJKO\OLTXLGVKRUWWHUPLQYHVWPHQWV 7RWDO MEDIA REVOLUTIONIST 159

$&&281765(&(,9$%/(1(7 $VDW'HFHPEHUDQGDFFRXQWVUHFHLYDEOHZDVFODVVLILHGE\DJLQJDVIROORZV %DKW &RQVROLGDWHG 6HSDUDWH $FFRXQWVUHFHLYDEOHUHODWHGSDUWLHV &XUUHQW 2YHUGXH /HVVWKDQPRQWKV PRQWKV PRQWKV 2YHUPRQWKV 7RWDO /HVV$OORZDQFHIRUGRXEWIXODFFRXQWV 7RWDODFFRXQWVUHFHLYDEOHUHODWHGSDUWLHVQHW $FFRXQWVUHFHLYDEOHRWKHUVQHW &XUUHQW 2YHUGXH /HVVWKDQPRQWKV PRQWKV PRQWKV 2YHUPRQWKV 7RWDO /HVV$OORZDQFHIRUGRXEWIXODFFRXQWV 7RWDODFFRXQWVUHFHLYDEOHRWKHUVQHW 160 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

,19(1725,(6y1(7 $VDW'HFHPEHUDQGLQYHQWRULHVZHUHDVIROORZV %DKW &RQVROLGDWHG 6HSDUDWH )LQLVKHGJRRGV)LOPVDQG0XVLF7DSHV &'V9&'V'9'V :RUNLQSURFHVVPRYLHGUDPDWHOHPRYLH DQGRWKHUV 0XVLF 793URJUDP &RQFHUWDQGPDUNHWLQJDFWLYLWLHV 'UDPDVHULHV 7HOHPRYLH )LOP 3URGXFWLRQKRXVH 7RWDOZRUNLQSURFHVV 5DZPDWHULDO 6DWHOOLWHWHOHYLVLRQUHFHLYHUV 2WKHU 7RWDO /HVV$OORZDQFHIRUGHYDOXDWLRQRI LQYHQWRULHV ,QYHQWRULHVQHW MEDIA REVOLUTIONIST 161

6+2577(50/2$167227+(561(7 $VDW'HFHPEHUDQGVKRUWWHUPORDQVWRRWKHUVZHUHDVIROORZV %DKW &RQVROLGDWHG 6HSDUDWH 6KRUWWHUPORDQVWRHPSOR\HH 7RWDO

,QWKHVHFRQGTXDUWHURIWKHVXEVLGLDU\FRPSDQ\KDVVKRUWWHUPORDQVWRRWKHUFRPSDQ\DPRXQWRI%DKWPLOOLRQ IRUFRSURMHFWLVXQVHFXUHGDQGKDVQRDQ\LQWHUHVWFKDUJH7KHVXEVLGLDU\FRPSDQ\UHFHLYHGWKHZKLOHDPRXQWKDVDOUHDG\

27+(5&855(17$66(76 $VDW'HFHPEHUDQGRWKHUFXUUHQWDVVHWVZHUHDVIROORZV %DKW &RQVROLGDWHG 6HSDUDWH 8QGXHLQSXW9DOXH$GGHG7D[ 3UHSDLGH[SHQVH $GYDQFHUHFHLYDEOH 2WKHU$FFRXQWUHFHLYDEOH 2WKHU 7RWDO 162 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED 'LYLGHQG5HFHLYHG 3URYLVLRQ &DUU\LQJYDOXH %DKW $OORZDQFHIRULPSDLUPHQW VDW'HFHPEHUDQGFRQVLVWHGRI &RVW0HWKRG 3DLGXSFDSLWDO ,19(670(176,168%6,',$5,(6

7RWDO ,QYHVWPHQWVLQVXEVLGLDULHVZKLFKUHFRUGHGE\WKHFRVWPHWKRGD +LJK1HWZRUN&R/WG 6SRUW0DQDJHPHQW&R/WG 1DJDVLD&R/WG $YDQW&R/WG %OX)DLU\&R/WG'0HGLDDQG3URGXFWLRQ&R/WG 567HOHYLVLRQ&R/WG

,19(670(17,1$662&,$7('&203$1,(6 %DKW 3HUFHQW 3DLGXSFDSLWDO 3HUFHQWDJHRIKROGLQJ 1DPH 1DWXUHRIEXVLQHVV 567HOHYLVLRQ&R/WG 3URGXFWLRQKRXVHy79 SURJUDPV)LOPDQG DGYHUWLVHPHQW GRUPDQWFRPSDQ\ ,GHD3RZHU&R/WG 2UJDQL]HU

%DKW &RQVROLGDWHG ,QYHVWPHQWVDWHTXLW\PHWKRG ,QYHVWPHQWVDWFRVWPHWKRG ,GHD3RZHU&R/WG /HVV,PSDLUPHQWRILQYHVWPHQW 7RWDOLQYHVWPHQWVLQDVVRFLDWHGFRPSDQLHV

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uSURSHUW\SODQWDQG PLOOLRQ $VDW'HFHPEHUWKHERRNYDOXHRIYHKLFOHVDQGHTXLSPH UHVSHFWLYHO\LQWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDQGWKH PLOOLRQ $VDW'HFHPEHUWKH&RPSDQ\uVSURSHUW\SODQWDQGHTXLS MEDIA REVOLUTIONIST 169

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

,17$1*,%/($66(761(7 $VDW'HFHPEHUDQGLQWDQJLEOHDVVHWVDUHDVIROORZ %DKW &RQVROLGDWHG 6HSDUDWH &RVW %HJLQQLQJEDODQFH $GGLWLRQ 'LVSRVDO7UDQVIHU &DUU\IRUZDUGEDODQFH $FFXPXODWHGDPRUWL]DWLRQ %HJLQQLQJEDODQFH $PRUWL]DWLRQIRUWKHSHULRGV 'LVSRVDO7UDQVIHU &DUU\IRUZDUGEDODQFH %DODQFH /HVV $OORZDQFHIRULPSDLUPHQW 1HWERRNYDOXH 170 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

%DKW &RQVROLGDWHG 6HSDUDWH &RS\ULJKWRIPXVLF &RS\ULJKWRIGUDPD &RS\ULJKWRIILOP 2WKHUFRS\ULJKW 7RWDO 7ZRVXEVLGLDULHVFRPSDQLHVREWDLQHGVSRUWOLFHQVLQJIURPWZRRYHUVHDVIHGHUDWLRQV VHH1RWH

'()(55('7$; 'HIHUUHG LQFRPH WD[HV DUHFDOFXODWHG LQ IXOO RQ WHPSRUDU\ GLIIHUHQFHV XQGHU WKH OLDELOLW\ PHWKRG XVLQJ D SULQFLSDO WD[ UDWHRI $VDW'HFHPEHUDQGGHIHUUHGWD[FRQVLVWHGRI %DKW &RQVROLGDWHG 6HSDUDWH 'HIHUUHGWD[DVVHWV $FFRXQWUHFHLYDEOH ,QWDQJLEOHDVVHWV /RVVFDUU\IRUZDUG 7RWDO 'HIHUUHGWD[OLDELOLWLHV ,QWDQJLEOHDVVHWV 7RWDO 1HW MEDIA REVOLUTIONIST 171

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

,WLVXQGHUVWRRGWKDWWKH*RYHUQPHQWZLOOSURFHHGWRDPHQGWKHODZLQRUGHUWRPDLQWDLQWKHFRUSRUDWHLQFRPHWD[UDWHDWQRW KLJKHUWKDQIRUWKHDFFRXQWLQJSHULRGZKLFKEHJLQVRQRUDIWHU-DQXDU\DQGRQZDUGVLQRUGHUWRJLYHIXOO HIIHFWWRWKH&DELQHWUHVROXWLRQGDWHG2FWREHUWRLQFUHDVH7KDLODQGuVWD[FRPSHWLWLYHQHVV MEDIA REVOLUTIONIST 173

27+(5&855(17/,$%,/,7,(6 $VDW'HFHPEHUDQGRWKHUFXUUHQWOLDELOLWLHVZDVDVIROORZV %DKW &RQVROLGDWHG 6HSDUDWH $OORZDQFHIRUVDOHUHWXUQ 8QGXHRXWSXW9DOXH$GGHG7D[ 2WKHUV 7RWDO

/,$%,/,7<81'(5),1$1&,$//($6( $VDW'HFHPEHUDQGWKH*URXSKDGOLDELOLW\XQGHUILQDQFLDOOHDVHDVIROORZV %DKW &RQVROLGDWHG 6HSDUDWH /LDELOLW\XQGHUILQDQFLDOOHDVH /HVV&XUUHQWSRUWLRQRIOLDELOLW\XQGHUILQDQFLDOOHDVH /LDELOLW\XQGHUILQDQFLDOOHDVHQHW

$VDW'HFHPEHUWKH*URXSKDVILQDQFLDOOHDVHDJUHHPHQWVIRUYHKLFOHV7KHVHDUHSD\DEOHPRQWKO\LQWKHDPRXQW RI %DKW PLOOLRQ LQ WKH FRQVROLGDWHG ILQDQFLDO VWDWHPHQWV DQG WKH 6HSDUDWH ILQDQFLDO VWDWHPHQWV %DKW PLOOLRQ 7KHFXUUHQWSRUWLRQRI%DKWPLOOLRQ %DKWPLOOLRQ ZHUHSUHVHQWHGXQGHUFXUUHQWOLDELOLWLHV $V DW 'HFHPEHU WKH &RPSDQ\ DQG VXEVLGLDULHV KDYH FRPPLWWHG WR SD\ WKH OHDVH XQGHU WKH ILQDQFLDO OHDVH DJUHHPHQWVDVIROORZV %DKW

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

(03/2<((%(1(),72%/,*$7,216 $QLQGHSHQGHQWDFWXDU\FDUULHGRXWDQHYDOXDWLRQRIWKH&RPSDQ\uVREOLJDWLRQVIRUHPSOR\HHVuORQJWHUPEHQHILWVXVLQJWKH SURMHFWHGXQLWFUHGLWPHWKRG7KH&RPSDQ\KDVSURYLGHGWKHSURYLVLRQIRUHPSOR\HHVuORQJWHUPEHQHILWVDVDW'HFHPEHU DQGDVIROORZV %DKW &RQVROLGDWHG &RQVROLGDWHG &XUUHQWSRUWLRQRIHPSOR\HHEHQHILWREOLJDWLRQV (PSOR\HHEHQHILWREOLJDWLRQVQHW 7RWDO MEDIA REVOLUTIONIST 175

0RYHPHQWLQWKHSUHVHQWYDOXHRIWKHGHILQHGEHQHILWREOLJDWLRQV %DKW &RQVROLGDWHG 6HSDUDWH 3URYLVLRQIRUHPSOR\HHEHQHILWVEHJLQQLQJ $GGUHFRJQL]HGDPRXQW /HVVOLDELOLW\GHFUHDVHIURPDFWXDOSDLG 3URYLVLRQIRUHPSOR\HHEHQHILWVHQGLQJ 3UHVHQWYDOXHRIXQIXQGHGREOLJDWLRQ DVDW'HFHPEHU ([SHQVHUHFRJQLVHGLQSURILWRUORVV &XUUHQWVHUYLFHFRVW 3DVWVHUYLFHFRVW ,QWHUHVWFRVW 7RWDOUHFRJQL]HGLQWKHVWDWHPHQWRI &RPSUHKHQVLYH,QFRPH

3ULQFLSDODFWXDULDODVVXPSWLRQV &RQVROLGDWHG6HSDUDWH )RUWKH\HDUHQGHG'HFHPEHUDQG 'LVFRXQWUDWH (VWLPDWLRQRIIXWXUHVDODU\LQFUHDVH y 5HWLUHPHQWDJH \HDUROG

176 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

',9,'(1'5(&(,9(')52068%6,',$5,(6 'LYLGHQG 3HUVKDUH 7RWDODPRXQW %DKW 0LOOLRQV%DKW &RROLVP&R/WG )RUPHUO\6N\+LJK1HWZRUN&R/WG )LUVW 6HFRQG 7KLUG $YDQW&R/WG 567HOHYLVLRQ&R/WG 1DJDVLD&R/WG 56LDP&R/WG $ODGGLQ+RXVH&R/WG 7RWDO

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v$GYDQFHUHFHLSWVIRUVKDUH VXEVFULSWLRQwXQGHUv(TXLW\w MEDIA REVOLUTIONIST 177

75($685<6+$5(675($685<6+$5(5(6(59( 7UHDVXU\VKDUHV 2Q)HEUXDU\WKH&RPSDQ\uV%RDUGRI'LUHFWRU1RSDVVHGDUHVROXWLRQWRUHSXUFKDVHQRWPRUHWKDQ PLOOLRQVKDUHVRUQRWPRUHWKDQRIWKH&RPSDQ\u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uVVDOHV 7UHDVXU\VKDUHUHVHUYH 0RYHPHQWVLQWKHWUHDVXU\VKDUHUHVHUYHDFFRXQWDVDW'HFHPEHUDUHVXPPDULVHGEHORZ %DKW &RQVROLGDWHG6HSDUDWH %DODQFHDVDW-DQXDU\ 5HVHUYHGLQFUHDVHGXULQJWKH\HDU %DODQFHDVDW'HFHPEHU

178 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

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uVPHHWLQJ1RKHOGRQ$XJXVWWKH%RDUGRI'LUHFWRUVUHVROYHGWRDSSURSULDWHOHJDO UHVHUYHLQDPRXQWRI%DKWDQGDSSURSULDWHWKHQHWSURILWIRUWKHVL[PRQWKSHULRGHQGHG-XQHIRU VKDUHKROGHUDVLQWHULPGLYLGHQGLQDPRXQWRI%DKWPLOOLRQ &RPPRQVKDUHVVKDUHVDWYDOXH%DKW SHUVKDUH :KHUHE\SUHVHQWO\WKHGLYLGHQGKDVDOUHDG\EHHQSDLGWRVKDUHKROGHUVRQ6HSWHPEHU

6+$5(35(0,80$1'/(*$/5(6(59( 6KDUHSUHPLXP 6HFWLRQRIWKH3XEOLF&RPSDQLHV$FW%(UHTXLUHVFRPSDQLHVWRVHWDVLGHVKDUHVXEVFULSWLRQUHFHLYHGLQH[FHVVRI WKHSDUYDOXHWRDUHVHUYHDFFRXQW vVKDUHSUHPLXPw 6KDUHSUHPLXPLVQRWDYDLODEOHIRUGLYLGHQGGLVWULEXWLRQ /HJDOUHVHUYH 6HFWLRQRIWKH3XEOLF&RPSDQLHV$FW%(UHTXLUHVWKDWDFRPSDQ\VKDOODOORFDWHQRWOHVVWKDQRILWVDQQXDOQHW SURILWOHVVDQ\DFFXPXODWHGORVVHVEURXJKWIRUZDUGWRDUHVHUYHDFFRXQW vOHJDOUHVHUYHw XQWLOWKLVDFFRXQWUHDFKHVDQ DPRXQWQRWOHVVWKDQRIWKHUHJLVWHUHGDXWKRUL]HGFDSLWDO7KHOHJDOUHVHUYHLVQRWDYDLODEOHIRUGLYLGHQGGLVWULEXWLRQ MEDIA REVOLUTIONIST 179

($51,1*63(56+$5( %DVLFHDUQLQJVSHUVKDUH 7KHFDOFXODWLRQVRIEDVLFHDUQLQJVSHUVKDUHIRUWKH\HDUHQGHG'HFHPEHUDQGZHUHEDVHGRQWKHSURILWIRUWKH \HDUDWWULEXWDEOHWRRUGLQDU\VKDUHKROGHUVRIWKH&RPSDQ\DQGWKHQXPEHURIRUGLQDU\VKDUHVRXWVWDQGLQJGXULQJWKH\HDUDV IROORZV &RQVROLGDWHG 6HSDUDWH 3URILWIRUWKHSHULRGDWWULEXWDEOHWRVKDUHKROGHUVRI WKH&RPSDQ\EDVLF %DKW 2UGLQDU\VKDUHVRXWVWDQGLQJDVDW-DQXDU\ 6KDUHV (IIHFWRIRZQVKDUHVKHOGLQSHULRGV 6KDUHV (IIHFWRIVKDUHVLVVXHGLQSHULRGV 6KDUHV :HLJKWHGDYHUDJHRUGLQDU\VKDUHVRXWVWDQGLQJEDVLF 6KDUHV

(DUQLQJVSHUVKDUHEDVLF %DKW

'LOXWHGHDUQLQJVSHUVKDUH 7KHFDOFXODWLRQVRIGLOXWHGHDUQLQJVSHUVKDUHIRUWKH\HDUHQGHG'HFHPEHUDQGZHUHEDVHGRQWKHSURILWIRU WKH\HDUZHUHEDVHGRQWKHSURILWIRUWKH\HDUDWWULEXWDEOHWRRUGLQDU\VKDUHKROGHUVRIWKH&RPSDQ\DQGWKHQXPEHURI RUGLQDU\VKDUHVRXWVWDQGLQJGXULQJWKH\HDUDIWHUDGMXVWLQJIRUWKHHIIHFWVRIDOOGLOXWLYHSRWHQWLDORUGLQDU\VKDUHVDVIROORZV

&RQVROLGDWHG 6HSDUDWH 3URILWIRUWKHSHULRGDWWULEXWDEOHWRVKDUHKROGHUVRI WKH&RPSDQ\GLOXWHG %DKW :HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHV RXWVWDQGLQJEDVLF 6KDUHV (IIHFWRIH[HUFLVHRIVKDUHVRSWLRQV :HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHV RXWVWDQGLQJGLOXWHG 6KDUHV (DUQLQJVSHUVKDUHGLOXWHG %DKW 180 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

(;3(16(6%<1$785( 6LJQLILFDQWH[SHQVHVIRUWKH\HDUDQGZHUHDVIROORZV

7KRXVDQGV%DKW &RQVROLGDWHG 6HSDUDWH &KDQJHVLQ ILQLVKHGJRRGVDQGZRUNLQSURFHVV EDODQFH &RVWRIVHUYLFHDQGUDZFRQVXPDEOHDQGPDWHULDO XVHG (PSOR\HHH[SHQVHV 'HSUHFLDWLRQ 5HQWDODQGXWLOLW\H[SHQVH 6DOHVSURPRWLRQDQGSXEOLFUHODWLRQVH[SHQVH $OORZDQFHIRULPSDLUPHQWDVVHW /RVVIRUGDPDJHRILQYHQWRU\DQGSURYLVLRQIRU GHFOLQHLQYDOXHRILQYHQWRU\ MEDIA REVOLUTIONIST 181 7RWDO 7RWDO (OLPLQDWHG (OLPLQDWHG 7RWDO 7RWDO RUJHRJUDSKLFVHJPHQW RXSuVPDQDJHPHQWDQGLQWHUQDOUHSRUWLQJVWUXFWXUH HQVHV GRQDUHDVRQDEOHEDVLV8QDOORFDWHGLWHPVPDLQO\FRPSULVH %DKW %DKW 2WKHUVHUYLFHV 2WKHUVHUYLFHV 6KRZEL] 6KRZEL] ZLWKEXVLQHVVVHJPHQWLVDVIROORZV ZLWKEXVLQHVVVHJPHQWZDVDVIROORZV SKLFDUHDQDPHO\LQ7KDLODQGDQGKDVWKHUHIRUHRQO\RQHPDM QHVV7KHSULPDU\IRUPDWEXVLQHVVVHJPHQWVLVEDVHGRQWKH*U QJORDQVERUURZLQJVDQGH[SHQVHVDQGFRUSRUDWHDVVHWVDQGH[S DWWULEXWDEOHWRDVHJPHQWDVZHOODVWKRVHWKDWFDQEHDOORFDWH 0XVLFGLVWULEXWLRQ 0XVLFGLVWULEXWLRQ 0HGLD 0HGLD 6(*0(17,1)250$7,21

5HYHQXHVIURPH[WHUQDO 5HYHQXHVIURPLQWHUQDO 5HYHQXHVIURPH[WHUQDO5HYHQXHVIURPLQWHUQDO *HRJUDSKLFVHJPHQWV )RUWKH\HDUHQGHG'HFHPEHUWKHRSHUDWHGLQIRUPDWLRQ 0DQDJHPHQWFRQVLGHUVWKDWWKH*URXSRSHUDWHVLQDVLQJOHJHRJUD %XVLQHVVVHJPHQWV 6HJPHQWUHVXOWVDVVHWVDQGOLDELOLWLHVLQFOXGHLWHPVGLUHFWO\ LQWHUHVWRUGLYLGHQGHDUQLQJDVVHWVDQGUHYHQXHLQWHUHVWEHDUL )L[HGDVVHWV &RVWRIVDOHVDQGVHUYLFHV ,QWDQJLEOHDVVHWV *URVVSURILW ORVV 6HJPHQWLQIRUPDWLRQLVSUHVHQWHGLQUHVSHFWRIWKH*URXSuVEXVL 5HYHQXHV 5HYHQXHV &RVWRIVDOHVDQGVHUYLFHV*URVVSURILW ORVV )L[HGDVVHWV ,QWDQJLEOHDVVHWV )RUWKH\HDUHQGHG'HFHPEHUWKHRSHUDWHGLQIRUPDWLRQ 182 ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

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uV RSHUDWLRQVDQGLWVFDVKIORZV0DQDJHPHQWEHOLHYHVWKDWWKHLQWHUHVWUDWHULVNLVPLQLPDOEHFDXVHWKHLQWHUHVWUDWHVRQ RYHUGUDIWVDQGORDQVDUHDWPDUNHWUDWHVDQGVXEVWDQWLDOSRUWLRQVRIORDQVDUHVKRUWWHUPPDWXULW\$FFRUGLQJO\WKH *URXSGRHVQRWKHGJHVXFKULVN /LTXLGLW\ULVN 7KH *URXS PRQLWRUV LWV OLTXLGLW\ ULVN DQG PDLQWDLQV D OHYHO RI FDVK DQG FDVK HTXLYDOHQWV GHHPHG DGHTXDWH E\ PDQDJHPHQWWRILQDQFHWKH*URXSuVRSHUDWLRQVDQGWRPLWLJDWHWKHHIIHFWVRIIOXFWXDWLRQVLQFDVKIORZV )DLUYDOXHV 7KHIDLUYDOXHLVWKHDPRXQWIRUZKLFKDQDVVHWFRXOGEHH[FKDQJHGRUDOLDELOLW\VHWWOHGEHWZHHQNQRZOHGJHDEOH ZLOOLQJSDUWLHVLQDQDUPu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

$VDW'HFHPEHUWKHUHZHUHQRDQ\VDOHVDQGSXUFKDVHIRUZDUGFRQWUDFWV MEDIA REVOLUTIONIST 183

&$3,7$/0$1$*(0(17 7KHSULPDU\REMHFWLYHVRIWKH&RPSDQ\uVFDSLWDOPDQDJHPHQWDUHWRPDLQWDLQWKHLUDELOLWLHVWRFRQWLQXHDVDJRLQJFRQFHUQ DQGWRPDLQWDLQDQDSSURSULDWHFDSLWDOVWUXFWXUH

$VDW'HFHPEHUGHEWWRHTXLW\UDWLRLQWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVLV 6HSDUDWH

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

$VDW'HFHPEHUDQGWKH&RPSDQ\DQGWKHVXEVLGLDULHVZHUHEHLQJVXHGZLWKWKHSODLQWLIIGHPDQGLQJ WKH&RPSDQ\WRSD\IRUWKHGDPDJHFDXVHGE\WKH&RPSDQ\u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

&RPSDQ\ 7\SHRIOLFHQVH 7RWDORIOLFHQVH ,VVXHGDWH 3HULRG %OX)DLU\&RPSDQ\/LPLWHG 7HOHFRP2SHUDWLRQ/LFHQVH7\SH 'HFHPEHU \HDUV 1DJDVLD&RPSDQ\/LPLWHG 7HOHFRP2SHUDWLRQ/LFHQVH7\SH 'HFHPEHU \HDUV

68%6(48(17(9(17 7KH([WUDRUGLQDU\6KDUHKROGHUVu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

$W WKH %RDUG RI 'LUHFWRUV 0HHWLQJ1R KHOG RQ )HEUXDU\ WKH %RDUG RI 'LUHFWRUV UHVROYHG WR DSSURSULDWHWKHQHWSURILWIRUWKHIRUVKDUHKROGHUDVGLYLGHQGDWYDOXH%DKWSHUVKDUHIRUWKH RSHUDWLQJUHVXOW7KHGLYLGHQGRI%DKWSHUVKDUHZDVSDLGWRVKDUHKROGHUVDVWKHLQWHULPGLYLGHQGGXULQJWKH \HDUDQGWKHDGGLWLRQDOGLYLGHQGRI%DKWSHUVKDUHZLOOEHDSSURYHGDWWKHDQQXDOJHQHUDOPHHWLQJRI VKDUHKROGHUV

5(&/$66,),&$7,216 7KHILQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG'HFHPEHUKDYHEHHQUHFODVVLILHGWRFRQIRUPZLWKWKHSUHVHQWDWLRQRI ILQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG'HFHPEHUDVIROORZ 0LOOLRQ%DKW &RQVROLGDWHG 6HSDUDWH %HIRUH$IWHU %HIRUH $IWHU 5HFODVV 5HFODVV 5HFODVV 5HFODVV 5HFODVV 5HFODVV 6WDWHPHQWRIFRPSUHKHQVLYHLQFRPH &RVWRIVDOHVDQGVHUYLFHV $GPLQLVWUDWLYHH[SHQVHV 7KHUHFODVVLILFDWLRQVKDYHEHHQPDGHEHFDXVHLQWKHRSLQLRQRIPDQDJHPHQWWKHQHZFODVVLILFDWLRQLVPRUHDSSURSULDWHWRWKH &RPSDQ\

$335529$/)257+(,17(5,0),1$1&,$/67$7(0(176 7KHVHILQDQFLDOVWDWHPHQWVKDYHEHHQDSSURYHGIRULVVXHE\WKH&RPSDQ\uVDXWKRUL]HGGLUHFWRUVRQ)HEUXDU\

RS PUBLIC COMPANY LIMITED Chetchotisak Building, 419/1 Ladphrao 15 , Ladphrao Road, Chomphon, Chatuchak Bangkok, 10900