RS 2016 MEDIA REVOLUTIONIST

Investor Relations

Message from chairman

Message from the Chairman and Chief Executive Officer

Dear Shareholders,

The year 2015 was an important step for RS in changing its corporate structure into the media company, after fully transformed its digital tv business under the “Channel 8” brand using number 27 of the nationwide tv reception. This was the result of competing and receiving the general operating television license in the category of license for using the frequency and operating the television business from the National Broadcasting and Telecommunications Commission (NBTC) in late 2013.

In the past year, free tv industry encountered a very intense competition from the digital tv business as each operator competed in capturing viewership which was shown into the form of rating figure, while advertising budget was still limited. This reflected situation of the overall Thai economic figure in 2015 as, even though, it registered an increase in economic growth comparing to previous year but overall picture was still stagnant. It was due to the fact that domestic economy from the previous year was heavily stumbled due to political turmoil. External factors also had some impact towards overall Thai economy that resulted in impact towards the advertising industry which rely its growth in conjunction with the country economic situation.

At any rate, the overall Thai economy in 2016 is expected to improve, based on economic stimulus measures such as the measure to help low income earners, the measure to support SMEs, the measures to stimulate the real estate sector, etc. Other initiatives include more clear and concrete plans for public investments in infrastructure, which will help build trust in private sector investments and among consumers. As for exports and tourism, such sectors are benefiting from the weakening of the Baht currency. All these factors contribute to the anticipation that the GDP in 2016 will grow, leading the way for growth in the advertising industry.

As RS has experience for a long period of time and is ready in every operation whether in experienced teams, producing variety contents, including the financial situations, these enable “Channel 8” to continuously increasing its rating. From data of AGB Nielsen Media Research, the “Channel 8” has number 4 rating nationwide, which includes rating for both the analogue and digital channels while variety programs and the sports programs receive huge response from viewers.

In 2015, the operating results showed a slightly decrease in revenue which was due to revenue from copyright management of the 2014 FIFA World Cup in the prior year. Excluding revenue from this event, revenue from the digital TV business recorded growth as each channel registered continuous good performance. Apart from “Channel 8” which showed number 4 rating in the country, the “Channel 2”, and “Sabaidee TV” also showed high ranking in the satellite tv categories. Revenue from radio media business decreased slightly due to saturation in the industry but “Cool Fahrenheit 93” protected its market shares in term of revenue and audience. Revenue from music distribution business decreased from last year from changes in consumers’ behavior. However, music business was considered an important business of the Company as it was the main source of contents and artists which can be extended to media business. Revenue from Event Business showed an increase from previous year due to increasing number of events.

On the corporate social responsibility, RS committed to activities for society in conjunction with the entertainment business all along. In 2015, we have joined in with variety of social projects including some of our own activities. Some of the projects that could be mentioned were “RS Birthday Charity”, the monthly activity that invited singers or actors who had birthday in that month to join in the beneficial activities for society in many locations such as the “Children Foundation”, “Social Service Center for the Elders”, “School for the Blind”, “Veterans General Hospital”, etc. Moreover, there were many activities such as the activity on selling the "DorgKaew Kulaya" flower on the occasion of the Disabled Day so that all income would be used to develop and support all disabled people throughout the country; campaign to raise awareness to people on the "Aids" problem and to build knowledge on defense in the World Aids Day; campaign on selling the Mahidol flag with income donating to the Siriraj Foundation to help the underserved patients and purchase medical equipment; activity on charity rally with income to build the hospital of the Thai Red Cross, etc.

Good corporate governance is always a very important factor in operating the RS business as indicates in the Corporate Governance Report of Thai Listed Companies 2015 that the Company has been listed in the very best CG scoring. The Company has reviewed its good corporate governance policy on the yearly basis and always instructs its Directors, Executives and employees to follow the policy. Apart from the goal in achieving the business success, we are determined to build sustainable society and balance that covers the economy, society and environment, including the building of long term benefit for our shareholders.

On behalf of the Company’s Board of Directors, we would like to thank shareholders, business allies, customers, government agencies, and sponsors who have confident, trust, and always support us all along. Most important of all are our employees and artists who dedicated their bodies and minds, and ready to change and encounter with every situations. All these have generated the corporate culture and important strong point for RS people in moving our organization forward towards our objective strongly and firmly.


Mr. Surachai Chetchotisak
Chairman and Chief Executive Officer