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Message from the Chairman and the Co-Chief Executive Officers

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Message from the Chairman and the Co-Chief Executive Officers MESSAGE FROM THE CHAIRMAN AND THE CO-CHIEF EXECUTIVE OFFICERS MESSAGE FROM THE CHAIRMAN AND THE CO-CHIEF EXECUTIVE OFFICERS Dear Shareholders, In 2009, Grammy embarked on two significant missions. Firstly, Thais living abroad and for foreigners who enjoy listening to Thai the Company strongly emphasized businesses that are considered music. By expanding into this untapped market, the Company ‘Star Businesses’ or those that show potential in bringing about can export more content in terms of physical products and digital future prosperity. Secondly, we adjusted our strategies to better formats, as well as managing our music publishing business to meet changes in consumer behavior and constantly evolving many countries, and together with our foreign partners, groom technology. more artists under projects such as “Asian Hero”. Grammy views that ‘Star Businesses’ are those that can take The second mission is adjusting the Company’s strategies to advantage of the Group’s vast content, manage and adapt them better meet changing consumer behavior and technological to suit modern consumers’ lifestyles, or are capable of creating innovations by increasing the variety of distribution channels so new businesses through our existing content. These businesses that consumers can more readily access our music. This has include Digital Business, Satellite Television Business, Show been done by increasing the number of mobile sales units and Business, and International Music Business. expanding our telesales capacity, in addition to expanding the Our Digital Business has, on average, grown 50% over the past range of music products such as VCDs and DVDs of concerts, and two years due to our strategy of introducing monthly subscription edutainment products. services through every leading mobile telephone operator. We are The Company’s remaining core businesses showed satisfactory considered pioneers in creating this highly successful business growth despite Thailand facing an economic and political crisis. model, which manages content in a new format. Television program production for free television channels For our Satellite Television Business, Grammy was able to harness continued to grow, spurred by primetime dramas, sit-coms, both its longstanding expertise in targeting a wide spectrum of reality shows such as ‘The Star’, which proved popular across a viewer segments and the strength of its content to launch four wide audience. The latter also is an avenue for recruiting new channels within one year, all of which were well-received by both artists. Variety shows and dramas targeting teenaged audiences the audience and sponsors. have done particularly well, with GMM Grammy retaining its ‘Fan TV’ is the leading channel for fans who enjoy Thai country leadership in these two genres. music, and it has rapidly risen to become the third highest ranking Although revenue from the Radio Business declined in line channel on national cable television. ‘Bang Channel’ is among with economic conditions, new strategies to boost and retain the top tier cable channels favored by teenagers, while ‘Green its radio-related revenue share such as concerts, activities, and Channel’ wins the hearts of working age viewers who enjoy travel agencies yielded results indicating that these changes are contemporary music and rare footages of concerts, whilst ‘Acts pushing the business in the right direction. Channel’ caters to sit-com and drama fans. The Publishing Business has increasingly embraced new media. In addition, the Company and the Stock Exchange of Thailand have One example is creating Maxim’s “e-gazine”. In addition, we are jointly invested in Family Know-how Company Limited, which working to transfer magazine content to the satellite television operates the ‘Money Channel’, currently considered a central programs. source of information on finance and investments in Thailand. Through our subsidiary GTH, four films were produced in 2009. And in 2010, the Company plans to launch two to three more BTS: Bangkok Traffic (Love) Story earned 146 million baht in box satellite television channels to tap into opportunities available office sales, making it the most financially successful Thai film in in other viewer segments, and to strengthen the overall media 2009, in addition to being a winner of numerous awards. business platform. Thus, 2009 is a year that Grammy has set its goals on being a Show Business, which focuses on organizing concerts, is one leader in entertainment content by creating a high quality content of the best ways to make use of music content. In 2009, the platform to meet the needs of various consumer groups. Grammy emphasis was on creating new types of concerts, particularly firmly believes in ability to utilize its strong content over a long music festivals, which are the latest trend. One such concert was period of time, and delivered through the appropriate media or the ‘Dee Boy Pop Fest’ in Nakorn Ratchasima, a highland resort products which most conveniently matches the lifestyle of its about one and a half hour from Bangkok. target consumers. In parallel, the Company has created a media At the beginning of 2010, GMM Grammy also organized the ‘Big platform that is suited with the changing times, whether it be new Mountain Music Festival’, which showcases creativity for such media or segmented media, with the full backing of Grammy’s event in Thailand. Besides offering a wide expanse for artist leadership in a comprehensive range of mass media businesses. to perform and welcoming the largest audience the Company Nonetheless, Grammy’s missions could not be accomplished had ever managed, other forms of entertainment and activities without the support from every shareholder, members of the were available to ensure that all thoroughly enjoyed themselves management team, business partners, financial institutions, throughout the duration of the festival which lasted three days and related government agencies and our customers, as well as every two nights. employee in the Group, for their wholehearted cooperation in As a result of this successful music festival, the Company plans to weathering the challenging times together. make it an annual event, jointly developed with the expertise and On behalf of the Board of Directors, I wish to thank you and hope support of our subsidiaries, Index Event Agency Plc. that our Company will grow and progress sustainably, and bring One business that shows promising growth is the International excellent returns to every shareholder in the long run, as befits Music Business, which emphasizes creating new markets for the trust that you have always had in us. Mr. Paiboon Damrongchaitham Ms. Boosaba Daorueng Mrs.Saithip Montrikul na Audhaya Chairman Chief Executive Officer Co - Chief Executive Officer 04 AUDIT COMMITTEE REPORT GMM Grammy Public Company Limited and Its Subsidiaries AUDIT COMMITTEE REPORT GMM Grammy Public Company Limited and Its Subsidiaries The Audit Committee (“the Committee”) has been appointed 5. Reviewed related transactions or conflict of interest issues by a resolution passed by the Board of Directors which to ensure that transactions were reasonable and fair in comprises 4 independent Directors. Mr. Chai Nasylvanta was accordance with the rules or announcements of the SET and appointed Chairman of the Audit Committee and the other the disclosures were correct and complete. members are Mr. Dej Bulsuk, Mr. Weerawong Chittmittrapap 6. Reviewed and acknowledged internal audit results quarterly. and Mr. Wanich Jarungidanan. The Director of the Internal Followed up management actions and progresses on Audit Department serves as the secretary to the Committee. the internal and external audit findings and recommendations. In 2009, the Committee had performed according to the Audit Approved the internal audit plan for the year 2010. Committee Charter which complies with the relevant rules In addition, the Committee reviewed the Independence of the and regulations set forth by the Stock Exchange of Thailand Internal Audit and concurred to the performance evaluation and the Good Corporate Governance policy. The Committee of the Internal Audit staffs and their remunerations which conducted 4 meetings, The summary of attendance of Audit were assessed and proposed by Chief Executive Officer. Committee members is as follows : 7. Annually reviewed and updated the Charter of Audit Committee Name Position Regular Meeting and Internal Audit, to ensure that the Charters still suit with 1. Mr. Chai Nasylvanta Chairman 2/4 the Company’s business environment. 2. Mr. Dej Bulsuk Member 4/4 8. Conducted the Audit Committee self assessment on its 3. Mr. Weerawong Chittmittrapap Member 4/4 composition, qualification, activities in compliance to 4. Mr. Wanich Jarungidanan Member 3/3 the audit Committee Charter, training, authority and the The Committee activities could be summarized as follows: independence. For the year 2009, the Committee concluded 1. Reviewed the quarterly and the annual financial statements that the Committee has adequately completed its duty as for the year 2009 regarding the disclosure of significant assigned and reported the assessment results along with information, rendered by the Internal Audit Department, the Committee’s activities to the Board of Directors Meetings the External Auditors and the Management, to ensure on February 26, 2010. the accuracy, reliability and adequacy. 9. Reviewed that the Company abided by the Good Corporate 2. Reviewed the efficiency and the adequacy of the
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