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BEC WORLDPUBLIC COMPANYLIMITED

February 23,2017

To: President,

Stock Exchange of Thailand.

Re: Submission of FinancialStatements for theYear 2016

Enclosures: FinancialStatements forthe Yearended December 31, 2016and the relevant management discussion and analysis with the reasons of the changes more than 20%.

We are sending youherewith the enclosed financial statements ofthe company andthe consolidatedstatement ofthe group for the year ended December 31, 2016, which wereaudited by the Auditor and our Audit Committee has already reviewed them.

For the year2016, the group,BEC World, wasable to made Bahtl,218.3 mi lion as its net profit for the shareholdersof BEC World; which is Baht 1,764.4 mi lionlower than that ofthe prioryear, downs 59.2%.The decline of profit wasmainly a resultant of the bigdrop of ouradvertising income ofour main business activity i.e. "Channel 3" asthe demand for ouradvertising air-timeduring the day-time haddropped a lotthroughout the year and ourbusiness was also suspendedfor over amonth during thelast quarter of the year. Even we wereable to make more income from the 2new digital terrestrial, OTIV, channels and alsoable to reduceour operatingcosts substantial ybut unfortunately thedrop ofour operating costsis not able to coverthe drop ofour main adverting income thusthe net profit for the shareholders ofBEC World isdecreased year-on-yearat the high amount andhigh rate as discussed further in the attachedmanagement discussion andanalysis.

Please be informedaccordingly.

Sincerely Yours,

(Chatchai Thiamtong)

Vice President - Finance

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Ilead Office:3 199 Maleenonl Tower, FloorB I, G, 2, 3,8,9,I0,30-34 RamaIV Road,Klonqlon.Klonglocy. &1ngkokIO II0, Thalland.Tel. 0-2204-3333,0-2262-3333 fox :66 (0) 2204- 1384

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BECWorld Plc.

BEC WORLDPUBLIC COMPANYLIMITED

Consolidated FinancialStatements for the year2016 Management Discussion and Analysis:

Business Environment:

During the year2016, "Nielsen Media Research" [Nielsen] reported that the advertising spending (Adex) continuedits downward trend from the beginning of the year.Even there were improvements during the secondand the third quarters, but the Adex are stilllower year-on-year. During the last quarter of the year,the Adex fell deeply, especially after the sad news in the afternoon of the October 13thwhichcaused the suspense of entertain and media businesses for more than a month afterward that. Nielsen reported that the advertisingindustry shrank 12 percent year-on-yearin 2016 whereasTelevisions felldeeper but still the major medium in the industry holding a lion shareof the Adex as usual. Whenlooking atthe sources of the spending, Nielsen also reported that whencompares with prior year most of the big advertisers spendless Adex this year whereas the biggest advertiser cut its spending over 40 percent; even there were those who sti lincreased their spending but the increase is small.However, as the entertain and media businesses were suspendedfor more than amonth in thelast quarter ofthe year,therefore the year-on-year comparisonswere distorted andmay notrepresent the true behavior ofthe advertisers.

Structure Changes:

During the year, 2016, the structureof BEC World group is unchanged.

Operati ng Results:

Due to the accountingpolicy for investments, the reported profit as shownin the separate statementsis difference from that shownin the consolidated statements.This MD&A will discuss those numbers shownin the consolidated statementsin order to avoid any confusion.

For theyear 2016, thegroup, BEC World, was able to made Bahtl,218.3 mi lionas its net profitfor theshareholders of BEC World;which is Baht 1,764.4 millionlower than that of the prioryear, downs 59.2%. The declineof profit was mainlya resultant of the big dropof our advertising incomeof our main businessactivity i.e. "Channel3" as the demand for ouradvertising air-time during the day­time had dropped a lot throughout theyear and our business wasalso suspended for over a month during thelast quarterof the year. Evenwe wereable to make more income from the 2 new digital terrestrial, DTIV,channels and also able to reduceour operating costssubstantially but unfortunately the dropof our operating costs is notable tocover the dropof our mainadverting income thus the net profitfor the shareholders of BEC World is decreasedyear-on-year at the highamount and high rate as mentioned.

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Revenues:

BBC WORLDPUBLIC COMPANYLIMITED

For the year2016, BEC World group generatedlower year-on-year "advertising income"as the Loading on our mainstream business, "Channel3", had dropped as market sentimentand incentive for the advertisers to complete in the market deteriorated by economic conditions which caused many of our advertisers to reduce their spending with us and also because our business was suspended for over a month from the afternoon of the October 13th. Our "advertising income" in the year 2016 was only Bahtll,151.2 million,Baht3,045.5 millionlower decreased 21.5% year-on­ year, even we had higher income from our 2 new DTTV channels by about BahtlOO mi lion. During the year 2016, we had more than 100new advertisers but the number of our supporters in 2016 is sti lsmal er than that of the 2015 as those who stopped spending are out-numbered those who started becoming our new supporters. Our income from organizing concerts and shows is alsolower year-on-yearas the internationalconcerts had moved to our associated joint venture company since the beginning of the 2nd half of 2015; our "copyrights and other services income" and our "sales of goods" are also Lower year-on-yearin Line with the market conditions.

Costs and Operating Expenses:

"Costs ofservices", especial y those not related to "concerts and shows",decreased 8.9% year-on­year, Lowered down by Baht814.8 mi lion. Majority of the decrease are programming costsand cost of goodsand serviceswhich were declined in line with the revenue. Infact, almost allofour costitems were decreased from the prior year's base except DTTV's net-works service costswhich increased in line with its expansion plan anddepreciation as we had expandedour investment during the Last 2 years.Our "selling expenses"also decreased by Baht149.3 millionlowered year­ on-yearby 25.3% partly as a direct results ofthe decrease of ourrevenue. However, our"administration expenses"increased year-on-year1.2% Baht18.7 million higher as we had higher provision for doubtful debts. Our "finance costs"also higher year-on-year as we are transforming from an excess cash companyto aproper capital structured company consequentof the invest in DTTV since2014 and partly from the changeof accounting policy during theprior year in recognition ofthe Digital channels'License costthat now splitsin to "costs"and "finance costs" which also causedbigger costsin the early stage ofthe Licenseperiod than that ofthe Latter part. Anyhow, BEC World group aretrying to do ourbest to controlthe increases ofour operating coststo minimize the wastes and to ensurethat they are not inflated much more than necessary while waiting for the readiness ofthe market andthe advertising spendingpotential.

Financial positions:

Our total assets atthe endof 2016are at aboutthe samewhen compared withbalance at the end ofthe prior yearboth the currentassets and the non-current part. However, our Liabilities increasedabout Bahtl,050 million as wehave higher short-term borrowings from payments for DTTV Licenses andrelated investments. Our"shareholders' equity"decreased in line with thelowered down profit asmentioned. However,BEC World's financialpositions are stronghaving reasonable Low liabilitiesand generated high funds from operation asusual.

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Ilead Office:3J99MaleenontTower,Floor 131.G, 2. 3,8,9,I0,30-34RamaIVRoad, Klongton,Klongtoey,BangkokIO110,TI1ailanTel.0-2204-3333,0-2262-3333Fax :66 (0)2204-1384

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BEC World pcl published this content on 23 February 2017 and is solely responsible for the information contained herein.
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