JKN Global Media Public : Management Discussion and Analysis Quarter 1 Ending 31 Mar 2022 (Additional information)

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Management Discussion and Analysis of the Company's Performance for the the three-month period ended 31 March 2022

(Additional information)

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JKN GLOBAL GROUP PUBLIC COMPANY LIMITED Management Discussion and Analysis of the Company's Performance for the three-month period ended March 31, 2022

1. Overview of operating results of the Company and its subsidiaries

		Baht Million		2022	2021	+/(-)	+/(-)%
		Total revenues		465.92	442.53	23.40	5.29%
		Total expenses	(330.85)	(273.75)	57.11	20.86%
		Profit from operating activities		135.07	168.78	(33.71)	(19.98%)
		Finance income	0.06	0.25	(0.19)	(76.83%)
		Finance cost
			(63.54)	(41.73)	21.81	52.28%
		Income tax expenses	(17.91)	(27.90)	(9.99)	(35.79%)

		Net profit			50.62		99.40		(48.78)		(44.45%)
		Loss attributable to Non-controlling interests	(3.76)	(0.11)	(3.65)	3,352.29%
		Profit attributable to owners of the parent			54.38		99.51		(45.13)		(45.35%)
		company
		Net profit ratio (ROS)	10.86%	22.46%
		Earnings per share (Baht)			0.09		0.16		(0.07)		(44.05%)
		Diluted earnings per share (Baht)			0.08		0.14		(0.06)		(42.39%)

Total Revenue

For the three-month period ended 31 March 2022, the Company and its subsidiaries earned a total revenue of THB 465.92 million, which increased by THB 23.40 million or 5.29% from the same period of previous year. The total revenue of each operating segments for the the three-month period ended 31 March 2022 of the Company and its subsidiaries had changed from same period of previous year as follows

1. Revenue from sales of program rights increased 5.56% (2) Revenue from advertising and media services decreased 4 9 . 5 4 % ( 3) Revenue from sales of products increased 100% ( 4) Other income decreased 79.62 %.

Net profit

For the three-month period ended 31 March 2022, the Company and its subsidiaries had net profits of THB 50. 62 million which decreased by THB 48.78 million or 49.08% from the same period of previous year, mainly due to the increased of THB 21.81 million or 52.28% in finance cost, arisen from short-term loans from financial institution, including the debentures that had been issued during the previous year for the purpose of the acquisition of new business in the last year. Moreover, an arisen from Selling and servicing expenses mainly due to subsidiaries had been publicized it's products to raise brand awarenesss to the consumers.

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JKN GLOBAL GROUP PUBLIC COMPANY LIMITED Management Discussion and Analysis of the Company's Performance for the three-month period ended March 31, 2022

From the reason mentioned above, total revenue to net profit ratio (net profit margin) for the three-month period ended 31 March 2022 decreased from 22.46% to 10.86%. In addition, the total selling and admin expense to total revenue ratio for the three-month period ended 31 March 2022 increased from 12.01% to 16.43.

For the earings per share, when comparing the conversion price and the fair value of the Company's shares, the fair value was higher than the conversion price. ( Based on the closing price of the Company's shares as at 31 March 2022 was 6.9 Baht per share, while the conversion price of the convertible debenture about 6.7 Baht per share). As a result, it is probable that the convertible debentures will be converted, the diluted earnings per share was calculated.

2. Summary of operating results by business type

	Baht Million			2022		2021		+/(-)		+/(-) %
	1. Content Business
	Revenue from sales of program rights		437.02		414.00		23.02	5.56%
	- Domestic sales			396.94		162.52		234.42		144.23%
	- Export sales		40.08		251.48		(211.40)	(84.06%)
	Cost of program rights			(172.08)		(201.56)		(29.48)		(14.63%)
	Gross profit of content business		264.94		212.44		52.50	24.71%
	Gross profit margin			60.62%		51.31%
	2. Advertising and Media Business
	Revenue from services		4.54		9.00		(4.46)	(49.54%)
	Cost of services			(69.65)		(19.05)		50.60		265.70%
	Gross loss of advertising and media business		(65.11)		(10.04)		(55.07)	(548.32%)
	Gross loss margin			(1,433.22%)		(111.54%)
	3. Product sales Business
	Revenue from sales of products		20.38		-		20.38	100.00%
	Cost of product sales			(12.56)		-		12.56		100.00%
	Gross profit of product sales business		7.82		-		7.82	100.00%
	Gross profit margin			38.37%		-
	Total Gross profit		207.65		202.40		5.25	2.60%
	Total Gross profit margin			44.95%		47.85%

Content Business

For the three-month period ended 31 March 2022, the Company had revenue from program rights of THB 437.02 million which was composed of domestic sales amounting to THB 396.94 million and export sales about THB 40.08 million or accounted for 90. 83% and 9. 17% ( 2021: 39.25% and 60.75% ) of total

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JKN GLOBAL GROUP PUBLIC COMPANY LIMITED Management Discussion and Analysis of the Company's Performance for the three-month period ended March 31, 2022

revenue from program rights, which overall increased by THB 23.02 million or 5.56% from the same period of previous year. The increase in revenue program right mainly from domestic sales of THB 234.42 million or 144.23% due to the reorder from a major customer with more volume for digital television (DDT) broadcasting and Cabsat in this period and renewing the expired license. Moreover, major customers purchased more of rights to broadcast on Internet Protocol television (IPTV) which is the new platform license that the Company had purchased during the end of year 2021. While export sales of revenue program right decreased by THB 211.40 million or 84.06%, mainly due to decline of orders from major customers who broadcast via cable and satellite (Cabsat) as the license year of program rights were not expired and there were still enough to be broadcasted on their channels.

	Baht Million			2022		2021		+/(-)		+/(-)%
	Rights to broadcast only one platform
	DTT		-	209.24	(209.24)	(100.00%)
	Cabsat			27.58		26.84		0.74		2.76%
	VOD		-	0.24	(0.24)	(100.00%)
	Subtotal			27.58		236.32		(208.74)		(88.33%)
	Rights to broadcast more than one platform
	DTT, Cabsat		212.50	0.62	211.88	34,174.19%
	DTT, Cabsat, IPTV			121.60		-		121.60		100.00%
	DTT, VOD		35.25	14.54	20.71	142.43%
	Cabsat, VOD			40.08		162.52		(122.44)		(75.34%)
	Subtotal			409.43		177.68		231.75		130.43%
	Total revenue from sales of program rights by platform			437.01		414.00		23.01		5.56%

For the three-month period ended 31 March 2022, considering revenue from program rights based on type of platform given to the customer, the revenue from sales the program rights that broadcast only one platform on digital television ( DTT) decreased from the same period of previous year due to the demand from most of customers has changed to the program rights to broadcast more than one platform especially the sales of program rights which can broadcast on digital television, cable and satellite and Video on demand (DTT, Cabsat, VOD). Moreover, the Company sold more of rights to broadcast on Internet Protocol television (IPTV) during this period. As a result, revenue from sales of program rights to broadcast more than one platform increased of THB 231.75 million.

For the backlog as of 31 March 2022 of THB 967. 86 million which is composed of THB 331. 58 million for the domestic sales and THB 636.28 million or USD 19.20 million for the export sales.

Costs of program rights business mainly consist of amortization, dubbing and translation costs. The Company had costs of program rights business totaling THB 172.08 million and THB 201. 56 million for the three-month period ended 31 March 2022 and 2021 respectively, in which decrease of 14.63%. As a result

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JKN GLOBAL GROUP PUBLIC COMPANY LIMITED Management Discussion and Analysis of the Company's Performance for the three-month period ended March 31, 2022

of the average license year increased from 3 years to 5 - 7 years, the amortization and costs of program rights therefore decreased.

The Company and its subsidiaries earned gross profits from program rights business for the three- month period ended 31 March 2022 and 2021 in a total of THB 264. 94 million and THB 212. 44 million, respectively, an increase of 24. 71% . The gross profit margin for the three-month period ended 31 March 2022 and 2021 was 60.62% and 51. 31% , respectively. This was mainly due to the decline of costs of program rights as mentioned above.

Advertising and Media Business

Advertising income is the income from the service by provide time to displaying the advertisement on the following platforms

• channel named " JKN 18" that broadcast through digital TV station or known as NEW18 in the past (acquire the whole station to operate by the Company since April 2021)
• available time during news programs under the brand JKN- CNBC and JKN NEWS that broadcast through digital TV station.

For the three-month period ended 31 March 2022, the Company and its subsidiaries earned service income totaled THB 4. 54 million, the decrease of THB 4.46 million or 49. 54% from the same period of previous year due to higher advertising revenue from JKN 18. However, the impact of Coronavirus desease 2019 pandemic that spread directly and indirectly to the various businesses in the country. Therefore, many companies in the country have been reduced their advertising expense to control the budget. Moreover, JKN 18 channel's broadcast schedules are currently rearranged to build more interest and channel's rating.

Product Sales Business

The income from product sales contains the sales of nutritional supplement products and healthy drinks which had been distributed since April 2021.

For the three-month period ended 31 March 2022, the Company and its subsidiaries earned revenue from product sales business of Baht 20.38 million which comprise the nutritional supplement products of Baht 7.80 million and healthy drinks of Baht 12.58 million.

Other Income and finance income

Other income of the Company and its subsidiaries consists of agent fee income (service income by distributes Thai contents to the worldwide) , gain on exchange rate and gain on short- term investment. Moreover, the finance income of the Company and its subsidiaries is interest income. For the three-month period ended 31 March 2022, other income and finance income were totaling THB 4. 04 million, which decreased by THB 15.73 million from the same period of previous year. As a result of the fact that the Thai