3Q15 Analyst Meeting 20 November 2015 Agenda . 3Q15 Financial Performance . Digital TV Business • Current Magnet Program • Channel Rating • Regulatory Update GMM GRAMMY PUBLIC COMPANY LIMITED 2 Financial Performance GMM GRAMMY PUBLIC COMPANY LIMITED 3 Financial Performance Music & Digital 2015 Turnaround Revenue Growth 3Q15 Revenue - More albums & releases of new singles THB 645.1 Million 5.7% - Increase Youtube sharing & digital music marketing - Underlying the growth of music group this quarter - Showbiz bounces off high activities & was fuelled by digital music marketing with higher concerts throughout the year contribution from SMS service Song2U, while - Full-year revenue from MuangThai YouTube viewers and revenue sharing for music & non-music contents kept rising and reaching 19MB GMM Live House (Opened in Oct-14) per month, with a total of THB 53MB for 3Q15 - Showbiz performance, though maintained at the same level as last year, somewhat slowdown after Y-o-Y % Growth 5.7% the blast happened at Ratchaprasong intersection. 7 Others 210 20 During 4Q15 upcoming events incl “Potato”, “Big Physical 16 Mountain Music Festival”, “Jimlai Festival”, etc. 28 139 208 80 155 Digital 117 21 - Copyrights revenue trended upward with music 199 55 181 175 rights becoming increasingly used in popular TV 185 196 YouTube 119 115 27 114 56 singing contest for many digital TV programs 18 31 434 37 Copyright 46 45 48 54 - Physical sales dropped with a total number of 234 138 153 166 164 Showbiz 310 albums as of 3Q15 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 GMM GRAMMY PUBLIC COMPANY LIMITED 4 Financial Performance Digital TV – GMM ONE 2015 Gearing towards Top-notch DTT Channels 3Q15 Revenue THB 173.5 Million - Continue adding magnet contents 46.0% especially drama & sitcom in primetime - Revenue for ONE digital TV - Revenue stream from analog - Expand viewers’ base in outskirts & continue to grow 31.4% Q-o-Q free TV platform decreased in rural area with top-rated ranks from accordance with the transition - Create brand awareness i.e. billboard, series of Prime time drama on towards digital free TV platform. roadshow air this quarter “Ban Lang Mek The pull back sitcoms planned “Tawan Tat Burapa”, with line- to broadcast in 4Q15 were Y-o-Y % Growth ups of new hits variety shows expected to gain high popularity 19.2% targeting at mass audience i.e. among fanbase incl. “Heng “Suk Wan Duan Pleng”. During Heng Heng”, “Phu Kong Chai 47 49 46.0% ONE DTV 4Q15, drama airtime will be Sanae”, “Baan Nee Mee Rak”, 30 44 expanded throughout Sat-Sun “Mue Prab Kook Kook Koo” 245 Others 21 322 - Normalized 3Q15 revenue by - Year-to-date media advertising 354 351 125 20 Free TV taking into account the 248 was still depressed by economic 218 18 disconsolidated One Enterprise recession, with seasonality 21 153 73 98 20 resulted in an improved impact witnessed during 3Q15 41 1Q14 2Q14 3Q14 1Q15 2Q15 2Q15 3Q15 3Q15 performance by 19.2% Y-o-Y Normalized Normalized Consol ONE Consol ONE GMM GRAMMY PUBLIC COMPANY LIMITED 5 Financial Performance Digital TV – GMM 25 2015 Gearing towards Top-notch DTT Channels 3Q15 Revenue - Stay ahead with series of fresh and THB 408.5 Million 2.3% differentiated contents - Showcase prime-time programs under - Ramp-up revenue for Digital TV - Revenue from radio media slogan “Entertaining Drama & Great GMM25, with rising trend after the rose 8.4% Q-o-Q, but dropped Fun premiered at 8 pm” launch of new programs in prime-time 11.7% Y-o-Y in line with - Provide total content solutions across slots under slogan “Entertaining Drama declining media industry multi-platforms to enlarge viewer base & Great Fun premiered at 8 pm spending while maximize revenue & branding - GMM 25 joined LINE TV with similar target viewers by broadcasting popular - Showbiz dropped after the contents i.e. “Club Friday the Series”, blast at Ratchaprasong Y-o-Y % Growth 2.3% intersection, despite big 13 13 “Ugly Duckling” on LINE TV shortly after 35 17 Others 29 40 concerts showed including 19 the first run, with upcoming plan to 5 Showbiz 15 “Big Hero”, “Green concert# 64 166 co-produce for exclusive broadcasts on 153 Radio 53 188 The Lost Love Songs” 143 LINE TV, which enhanced copyright 28 128 Free TV revenue & broaden viewers’ base to - Satellite-FreeTV revenue 112 100 103 GMM 25 DTV on-line platform that can further attract declined from previous year, 159 158 102 90 104 106 media agency as proven by several following the industry transition 44 0 1 4 GMM25 contents touching over 100 towards digital TV 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 million viewers record GMM GRAMMY PUBLIC COMPANY LIMITED 6 Financial Performance Home Shopping 3Q15 Revenue 2015 High Double Digit THB 450.6 Million 48.4% Revenue Growth - Despite overall depression in consumer confidence and purchasing power, O-Shopping maintained an average daily sales at 5.1 MB with rising customer base up to 790k - Differentiate with variety of - Plan to penetrate online shoppers products “Oshoppingtv.com” together with mobile application - Expand through internet showcasing more variety of product lines up to 1,000 channel items with high security payment system - Daily sales target approaching - Launch special promotion twice a month and partner with Linepay, Bank Credit Card for co-promotion 5 MB per day by yr-end 2015 - Regulatory spotlight and - Initiate new project : Master Antenna TV (MATV) in connection with high rise condominium broadcasting supporting policy system to penetrate O-shopping channel for residential viewer GMM GRAMMY PUBLIC COMPANY LIMITED 7 Financial Performance Satellite TV Platform Movies & Others 3Q15 Revenue 3Q15 Revenue THB 102.2 Million 73.7% THB 239.3 Million 20.2% - Approximately 200K units were sold this quarter, - Despite new movie “Freelance” generated box office lower Y-o-Y according to the shrinking volume of revenue by THB 88 million together with substantial set-top-box sold for the whole market mainly copyrights revenue in ASEAN market, 3Q15 revenue caused by digital TV transformation from movie slightly dropped 2.1% in line with overall - In an attempt to stimulate sales, series of local film industry got impacted from political unrest, promotion were launched this quarter following the economic recession and strong competition from new product lines “Mini Gold” with gold prize, Hollywood blockbusters together with big regional event “Z super - In 4Q15 GTH prepared to premiere new teen movie Mechanic Fin Fun Fair” across 4 provinces – “May Who?” directed by famous producer “Chayanop Bangkok, Hadyai, Chiangmai, Khonkaen, Boonprakob” whose past achievement in “SuckSeed” Moreover, the Company joined Tesco Lotus was very popular. The new film “May Who?” featured presented “Exclusive Trip Around the World 2” Japanese comic story telling format with fantasy giveaway Prague-Berlin tour package & closed out character and animation technique festive season with “Big Shoppers Farewell Year - Other business revenue decreased in the absence of end” for Tesco Lotus customers to win iPhone 6S publishing group following the divestment this quarter GMM GRAMMY PUBLIC COMPANY LIMITED 8 Strong Financial Position Interest Bearing Debt (IBD) Ratio Financial Position and Total Cash on Hand 16,301 15,950 4,000 5.00 15,106 3,500 4.50 14,145 13,918 12,604 4.00 11,894 12,180 11,711 11,596 3,000 3.19 10,821 11,523 2.99 3.50 10,136 9,776 2,500 3.00 8,627 9,007 7,795 7,391 7,660 2,000 2.50 6,942 6,442 6,481 6,364 6,115 1,500 1.61 2.00 4,503 4,699 5,093 4,319 0.94 1.18 1.21 1.50 3,936 3,916 3,879 3,977 3,583 3,772 3,661 1,000 0.78 0.74 3,173 0.72 0.59 0.57 1.00 3,678 3,340 2,157 2,032 3,016 2,815 500 3,719 2,884 3,284 2,228 2,100 3,348 0.50 1,514 1,014 2,197 1,940 1,847 1,334 1,264 - - 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Cash IBD: Equity Assets Liabilities Equities IBD Note: Total cash on hand = Cash and cash equivalents + Current investments i.e. Fixed deposit, Trading and Debt securities GMM GRAMMY PUBLIC COMPANY LIMITED 9 2015 Outlook Profit before corporate expenses and MI 2014 2015 Unit : MB 1H 2H 1H 3Q15 4Q15 Existing Business Music 163 249 291 84 + Others -45 -87 20 29 + Business Progress Home Shopping -51 -18 -20 -4 + Pay TV -1,461 None None None None Digital TV -158 -575 -584 -152 - The ONE Enterprise (51% Equity) -115 -112 - Extraordinary Items Divestment (SE-ED) + 72 Disconsolidating ONE TV + 654 Divestment (Index) + 103 Divestment (Others) + 34 Total -1,552 -430 455 -154 GMM GRAMMY PUBLIC COMPANY LIMITED 10 Digital TV Business GMM GRAMMY PUBLIC COMPANY LIMITED 11 Digital Terrestrial TV Business Two unique and distinct Digital TV channels to capture maximum audience exposure No. 31 on Digital TV and No. 41 on Satellite/Cable No. 25 on Digital TV and No. 35 on Satellite/Cable Theme Smart and Stylish Sincere and Sassy Positioning • Celebrate Your Life In Style Everyday on ONE • GMM Channel is with you every step of your life and every beat of your heart Main Target audiences • Premium Mass Audiences • Young & Young At Heart • Modern Families • Gen Y • Trendy Office Workers • Social media savvy population Selected Magnet Content • Pen-Tor (All-New Season) • Club Friday the Series • Star-studded Line-up of new primetime dramas • Drama “I Wanna Be Sup’Tar” • The Star (Variety Show) • GMM25 The Concert • Suk Wan Duan Pleng (Variety Show) • Red Carpet • All-Day Live News • EFM Entertainment News GMM GRAMMY PUBLIC COMPANY LIMITED 12 CELEBRATE LIFE IN STYLE EVERYDAY Digital TV Business Smart and Stylish Current Magnet programs “Yours