Management S Discussion and Analysis on the Company S

MCOT Public Company Limited

63/1 Rama IX Road, Huaykwang

Bangkok 10310 Thailand Phone +66 (0) 2201 6000 Fax +66 (0) 2245 1435 E-mail Contact@mcot.net

Ref: MCOT/ 6138/1320 May 14, 2019

The Stock Exchange of Thailand

Attn: The President

Re: The Management’s Discussion and Analysis on the Company’s Operating Results based on the Financial Statements for the three-month period ended March 31, 2019

Dear Sir,

On May 14, 2019, has resolved to approve the Company’s Financial Statements’ for the three-month period ended March 31, 2019, which are reviewed by the Office of the Auditor General of Thailand and the Audit Committee of MCOT Plc., the details of which are as follows:

Management’s Discussion and Analysis (MD&A) on MCOT Public Company Limited’s operating results for the three-month period ended March 31, 2019

In the first three months of 2019, the Company faced a deficit of Baht 32 million, a 71% reduction, compared to the same period of last year, due to continuously effective expense management.

Operating Results of MCOT Plc. And its Subsidiary are summarized below.

Unit: Million Baht (Reviewed) Jan-Mar Jan-Mar % YOY 2019 2018 Total Revenue 594 562 +6 Television 175 151 +16 Radio 164 164 - Digital 12 21 -43 Broadcast Network Operation Service 120 95 +26 Joint Operations 105 102 +3 Additional income from agreements 11 11 - Others 16 18 -11 Total Expenses 657 712 -8 Net Profit (loss) (32) (110) +71 EPS (loss) (0.05) (0.16) +69 Parent Company Profit (loss) (32) (107) +70 Net Profit of Minority Interest (loss) (0.3) (2.5) +88

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Overall Industry

According Nielsen (Thailand), ad spending in Q 1-2019 decreased 1.5%, compared to the same period of last year, with consumer goods brands being the top advertising spenders. Despite the election in March, ad spending did not grow as much as expected. Transit was the fastest-growing ad medium, which grew 9.8%, while Internet reserved its second place which grew 0.8%. At the same time, TV ad spending grew 0.18%.

On the other hand, ad spending on magazines, newspaper, cable and satellite TV, cinema and outdoor dropped 25%, 20%, 12%, 3% and 2% respectively. Likewise, ad spending on in-store and radio dropped 2% and 1.5%, respectively.

Total revenue

In Q1-2019, total revenue of MCOT Plc. was Baht 594 million, a 6% increase from the same period of last year, due to increased revenue from TV and BNO. But when compared with the last quarter of 2018, total revenue decreased 20%, partly due to the fact that Q4- 2018 was the highest-generating revenue quarter. Details of revenue structure were as follows:  TV (29%)  Radio (28%)  Broadcast Network Operation Service (20%)  Joint Operations (20%)  Digital (digital media and MCOT satellite network) (2%)  Others (1%)

TV and radio remained the core business of MCOT Plc., which accounted for 57% of the total revenue and saw a positive trend. The management of MCOT sought new opportunities to generate additional revenue and leveraged its existing assets. The disparity between revenue and expenses as well as new measures implemented to enhance the Company’s competitiveness is described as follows:

Television revenue

In Q 1-2019, TV revenue amounted to Baht 175 million, a 16% increase compared to the same period of last year, and a 28% drop compared to the previous quarter. MCOT’s TV revenue comprised:  Advertising (45%)  Special projects in collaboration with government and state enterprises (43%)  Time-rental (9%)  Other operations (3%)

9 MCOT HD remained the major source of TV revenue. Despite a 16% drop compared to 2018, revenue from Special projects in collaboration with government and state enterprises increased 30%. This was another important source of revenue which helped compensate for the loss in advertising revenue. In March 2019, 9 MCOT HD (30) was ranked the thirteenth. The channel would broadcast new programs and society-friendly contents in Q2- 2019.

At MCOT, we all work together towards a common goal of promoting transparency and anti-corruption to achieve sustainable development. MCOT has adopted an anti-corruption policy against all forms of corruption, which applies to any action taken by MCOT employees. For more information, please visit www.mcot.net/ir> good governance >corporate governance>anti-corruption policy. -3-

Following Article 10 in the Order of the Chief of National Council for Peace and Order No. 4/2019 on the Solution for Television and Telecommunication Industries, MCOT notified an intention to return the license to operate MCOT Family 14 Channel on May 10, 2019. However, MCOT would to maintain our stand in supporting kids, youth, family and society through all our media outlets. It was expected that NBTC would approve the termination broadcast services of MCOT Family 14 Channel to be effective in Q3-2019.

Radio revenue Despite a 1.5% drop in the overall radio industry, MCOT’s radio business was able to maintain its performance generating Baht 164 million in Q1-2019, a 0.2% drop compared to the same period of last year. MCOT’s radio revenue comprised.

 Central radio stations (74%)  Regional radio stations (26%)

FM 107 MHz, FM 97.5 MHz Mellow and FM 96.5 MHz were the stations whose revenue increased from Q1-2018.

Digital Media

Digital media revenue amounted to Bath 12 million, a 45% drop from the same period of last year, due to a decrease in the number of clients for C-Band satellite rental service and digital business revenue including www.mcot.net, Youtube and Facebook. MCOT utilized its assets by broadcastings its own contents on various platforms.

Broadcasting Network Operation Service (BNO)

In Q1-2019, MCOT’s revenue from BNO amounted to Baht 120 million, a 26% increase compared to the same period of last year, partly due to increased service fee for broadcast facilities. Currently, the BNO service was able to cover more than 90% of the households nationwide, in accordance with the timeframe set by the NBTC.

Total expenses

In Q1-2019, total expenses amounted to Baht 657 million, a 8% decrease compared to 2018, and a 5% decrease compared to 2017. TV and radio expenses accounted for 74% of the Company’s total expenses. Administrative expense significantly decreased 32%, compared with the previous year due to recovering doubtful debt.

Net Loss

Despite the intense competition among digital TV operators, decreased ad spending in the industry and disparity between revenue and expenses, MCOT Plc. was able to effectively control its expenses resulting in a deficit of Baht 32 million, which 71% reduced from 2018 compared to the same period of last year.

Assets, Liabilities and Shareholder’s Equity Unit: Million Baht (Reviewed) March 31, 2019 December 31, 2018 Assets 6,601 6,667 Liabilities 2,930 3,031 Shareholder’s Equity 3,672 3,636

As of March 31, 2019, the Company had total assets of Baht 6,601 million, total liabilities of Baht 2,930 million and shareholder’s equity of Baht 3,672 million. To sum, the financial statements represented the Company’s financial strength.

Sincerely yours,

(Mr. Nanthasit Leksrisakul) Executive Vice President and Chief Strategy and Finance Officer (CFO) MCOT Public Company Limited Authorized to sign on behalf of the company

Investor Relations Tel. 02 201 6388 Fax 0 2245 1854