Message from Chairman of the Board

We still committed to expand this business which is our expertise to create a stable and sustainable business growth.

To: Company Shareholders BEC World Public Company Limited

8,789

Million Baht

Total Revenues in 2018

10.2%

lower compared to the previous year.

2018 is another year which our industry regressed slightly since the beginning of the year, compared to 2017. Consequently, despite the fact that we can generate more advertising revenue from our new channels almost Baht 200 million, BEC World Group's, whose revenue base is higher than other operators in the past, advertising revenue generation in 2018 is only Baht 8,789 million which is 10.2% or Baht 1,011 million lower compared to the previous year. However, due to the organization restructuring and our effort to create new revenue bases, BEC World Group is able to generate more revenue from copyright licensing and other services, which is 70 % or Baht 436 million higher than the last year.

As a result of the continuous regression of advertising expenditure since the beginning of 2015 and the fact that there is no indication whatsoever for any change to the current trend, BEC World Group has been constantly controlling the costs and expenses since many years ago to reduce the loss while we are waiting for the rise of advertising expenditure. However, the intense competition from new channels, who becoming more known after operating more than four years, is the major obstacle for BEC World Group to maintain its costs and expenses as we need to keep our audience share. Despite our need to create new sources of incomes and having expenses from the reduction of organization size and the adjustment of the reserve expenses for employees' long-term benefits as special expenses, our cost and expense still decrease considerably compared to the previous year. Nevertheless, we still able to maintain our position as the top-rated television channel as ever.

Despite the fact that, in 2018, our revenue from copyright licensing and other services is Baht 436 million higher compared to the previous year and the fact that we had made effort to reduce the costs and expenses, our advertising revenue still plunged by Baht 1,011 million due to the regressive trend of the industry. In addition, since we have special expenses from the reduction of the organization size and the adjustment of the reserve expenses for employees' long-term benefits, BEC World Group's profit for 2018, which is the shareholder equity, is Baht 391 Million lower compared to the last year. Consequently, we suffered loss in the amount of Baht 330 million.

Despite the significant dropped in the profit compared to the last year, BEC World Group financial position is still stable and we can still generate cash flow from our operation at a high rate as before. Moreover, due to the governments' measure to delay the payment of licenses, the Company has more current assets with a decrease of current liabilities. As a result, it has a higher liquidity ratio.

In the early year of 2019, although there is no indication that the advertising expenditure will increase, but from the projected higher growth rate of macro-economic, the national elections and various economic stimulus, as well as the well-known plan to adjust the distribution of revenue, it is expected that the domestic purchasing power will grow. This growth of the domestic purchasing power will be the main factor to stimulate more competition in the domestic consumer market. Therefore, we are anticipating the growth of advertising expenditure in this year. We still committed to expand this business which is our expertise to create a stable and sustainable business growth. In this regard, we will focus increasing the efficiency of revenue generation and controlling the costs and expenses to reduce loss as before.

Despite the drop in our operating result in the previous year due to unfavorable environment, it is a result of the efforts, dedication, abilities and cooperation of our employees and associates at all levels, as well as the good support from customers, mass media, investors, our shareholders and the public. On behalf of the Board of Directors of BEC World Plc., we hereby expressed our sincere gratitude to all concerned parties.

Mr. Somchai Boonnamsiri

Chairman of the Board