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Opportunity Day March 13, 2020

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Page 1: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Opportunity DayMarch 13, 2020

Page 2: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by JKN Global Media Public Company Limited (the “Company”) to

you solely for your reference. This presentation is confidential and its content may not be copied, reproduced, redistributed, quoted, referred to or otherwise disclosed, in whole or in

part, directly or indirectly, to any third party without the prior written consent of the Company.

Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential

Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the

Company. None of the Company respective directors makes any representation or warranty (express or implied) regarding, and assumes any responsibility or liability for, the

accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. None of the Company or any of their respective members, directors,

officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or

its contents or otherwise arising in connection therewith.

This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any

securities in Thailand or any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.

This presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These views

are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and

these may change over time and in many cases are outside the control of the Company and its directors. You are cautioned not to place undue reliance on these forward looking

statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections will

be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the

basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,”

“projects,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or

in the forward-looking statements as a result of various factors and assumptions.

Disclaimer

Page 3: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Company overview

Financial Highlights

Business outlook

Q & A

Page 4: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

COMPANY OVERVIEW

Page 5: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Company Established with paid-up capital 1 Mil Baht

JKN Dramax channel starts operations.

Digital TV launched for Thai public.

License signed with CNBC (Asia) under American Broadcaster NBC (Universal)

Listed in The Market for Alternative Investment (mai)

Becomes worldwide distributor of BEC World content

JKN CNBC launches operations.

Plan to list in the SET (Stock Exchange of Thailand)

Page 6: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

A news TV station broadcast through

Digital TV, cable/satellite,

online, OTT branded under “JKN-CNBC” and “JKN-News”

A television network broadcast through cable/satellite and

IPTV systems, branded as

“JKN Dramax”

We are in the research and develop phase of launching a

comprehensive financial and

investment training institution.

We operate as an integrated marketing

communications distributor.

Page 7: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Corporate Vision

To be Number 1 global content management and distribution company in Thailand and

CLMV countries.

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FINANCIAL HIGHLIGHTS

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Financial Highlight

304

457

846

1,156

1,423

1,711

Total Revenue2014 2015 2016 2017 2018 2019

Media Product Other

Revenue - YTD (THBm)

Revenue Total revenue of the company and its

subsidiaries increased from the increasing of revenue from program rights.

The company continues its acquisition of new content rights in order to support the growth of the business.

Revenue by segment

Growth 20%

92%

4%3% 1%FY 2018

96%

2%1% 1%

FY 2019

Program right

Presenter
Presentation Notes
มรายไดรวมเทากบ 1,710.75 ลานบาท เพมขน 288.14 ลานบาท (รอยละ 20.25) รายไดคาสทธจากธรกจใหบรการและจำหนายลขสทธคอนเทนต เตบโตเทากบรอยละ 24.59 รายไดจากการใหบรการจากธรกจบรการโฆษณา ลดลงเทากบรอยละ 13.37 และ รายไดจากการขายจากธรกจจำหนายผลตภณฑ ลดลงเทากบรอยละ 73.40
Page 28: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Adaptability

1950 - 2010 2011 - 2017 2018 - 2019

Analog TV

Cabsat TV

Analog TV

Cabsat TV

DTT

Online

Streaming

Cabsat TV

DTT

Online

Streaming

DVD

Blu-ray

USB

DVD

Blu-ray

USB

Cassette Tap

CD

58

269 163 163 128

350 383 290

8 33

180

609

234 179

0 -26 - -- - 6

297 266

106

433

241

- 2 121

24 - - 21 5

133

11 18 -

100 200 300 400 500 600 700

2016 2017 2018 2019

Cabsat DTT VOD Home Ancillary Cabsat, Home Cabsat, VOD DTT, Cabsat DTT, Cabsat, VOD DTT, VOD VOD, Home

Revenue by platforms (THBm)

Content platform

Presenter
Presentation Notes
อดตโตท DTT ปนเปลยนมาเปน VOD โดยท cabsat กมกลบมาเหมอนกนโดยเปนการขายพวง Cabsat, VOD และ Cabsat, DTT
Page 29: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Revenue by platforms

-58

393

264

8 --

269

458

312

33 -

385

169

574

11

180

-

178

371 375

18

698

2 -

100

200

300

400

500

600

700

800

DTT, CABSAT (TV Right) CABSAT DTT HOME VOD CINEMA2016 2017 2018 2019

Unit: Million Baht 2018 % 2019 % Change %

DTT, CABSAT (TV Right) 384 29% 178 11% (206) (54%)CABSAT 169 13% 371 23% 202 120% DTT 574 44% 375 23% (199) (35%)HOME 11 1% 18 1% 7 64% VOD 180 14% 698 43% 518 288% CINEMA - - 2 0% 2 100% Total 1,318 1,642 324 25%

Presenter
Presentation Notes
ปทแลวยอดขายสวนใหญมาจาก platform DTT – RS (164 MB), Bright (175 MB), BEC (88 MB) และชอง 5 (73 MB) ปนเปน RS (85 MB) และ มเดยกราวน (278 MB แตมลดหนชอง 5ประมาณ 51 MB) ปนเปลยนมาเปน VOD – ซงปทแลวและปนยงมรายใหญคอ Bflix (172 และ 262 MB) โดยมตปทเพมเขามาคอ Hongmin (151 MB), Skylinks (78 MB), beyonddream(109 MB) สำหรบตางประเทศทปทแลวขายเปน TV right นนจากทกลาวไป ปนลกคารายใหมสวนใหญและรายเดมบางรายมาซอสทธ VOD เพม โดยรายใหญปทแลวคอ Skylinks (133 MB) และ Arait (177 MB) ในสวน Cabsat – TV direct (208 MB) TCNN (61 MB) และ นววน (54 MB) ปทแลวเปนผจดการ (79 MB) มเดยจกซอ (56 MB) และ ยไนเตดโฮม (28 MB)
Page 30: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Content by Geographic

933 MB

385MB

2018

Thailand Export

61%

82%

25%

9%

14%

9%

0% 20% 40% 60% 80% 100%

Indian Philippines Other

Revenue - Location Revenue - Categories

Backlog as at 31 Dec 20191,124

MB

518 MB

2019

Thailand Export

2018

2019

Backlog การขายคอน

เทนต 278 ลานบาท

Page 31: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Financial Highlight

Expenses

The increase in costs resulted from increased amount of rights held by the Company

Administrative expense increased from the last year was resulting from the increase in employee cost to support the growth of the business and new business such as news station under the name of JKN CNBC, and the increase in loss on exchange rate of THB 34.88 million due to the fact that the Thai Baht value appreciated against US Dollar. Moreover, there is rise of allowance for doubtful accounts, the Company setup THB 21.13 million for doubtful debts during this year.

232 255

558

830

1068

1298

2014 2015 2016 2017 2018 2019

55%

14%

59%

13%

57%

17%

Cost of program right SG&A

2017 2018 2019

Total expense (THBm)

Expenses per total revenue

Expense by segment

Program right Media Product SG&A

78%

3%1%

18%FY 2018 74%

2%0%

23%FY 2019

Presenter
Presentation Notes
Admin expense เพม 113.37 MB คาใชจายพนกงานและผบรหาร โดยเพมขนเทากบ 45.03 ลานบาท คดเปนเพมขนรอยละ 51.88จำนวนพนกงานทเพมขนเพอรองรบกบการขยายตวของธรกจ รายการขาดทนจากอตราแลกเปลยน โดยเพมขนเทากบ 34.88 ลานบาท ซงมสาเหตหลกมาจากคาเงนบาททแขงตวมากขนและบรษทฯมลกหนการคาตางประเทศเปนจำนวน 24.11 ลานเหรยญสหรฐอเมรกา สงผลใหบรษทฯเกดผลขาดทนจากอตราแลกเปลยน คาเผอหนสงสยจะสญ โดยในปปจจบนบรษทฯและบรษทยอยมการตงคาเผอหนสงสยจะสญเพมเปนจำนวน 21.13 ลานบาท (โดย ณ วนท 28 กมภาพนธ 2563 บรษทฯและบรษทยอยไดรบชำระเงนจากลกหนการคาทถกตงคาเผอหนสงสยจะสญแลวเปนจำนวน 12.70 ลานบาท และรบชำระเปนเชคลงวนทลวงหนาไวแลวเปนจำนวน 25.60ลานบาท) และ
Page 32: Opportunity Dayjkn.listedcompany.com/misc/presentation/20200313... · 3/13/2020  · Opportunity Day March 13, 2020. The information ( “Confidential Information ”) contained in

Selling & Administrative expenses

2126

5

11

30

7

Events Marketing AD & PR Other

2018 2019

87

120 1

39

132

14

3522

49

Employee cost Profession fee Loss on exchangerate

Doubtful debts Other

2018 2019

Selling Expense 2018 2019 Change %change

Events marketing 20.79 10.57 (10.22) (49.16%)

Advertising & PR 25.70 29.91 4.21 16.38%

Other 5.22 7.08 1.86 35.63%

Total selling expenses 51.71 47.56 (4.15) (8.03%)

Admin expense 2018 2019 Change %Change

Employee cost 86.79 131.82 45.03 51.88% Professional fee 11.53 14.05 2.52 21.86% Loss on exchange rate - 34.88 34.88 100.00% Provision for doubtful accounts 0.52 21.65 21.13 4,063.46% Other 38.97 48.78 9.81 25.17% Total administrative expenses 137.81 251.18 113.37 82.27%

Selling expense (THBm) Admin expense (THBm)

Presenter
Presentation Notes
Selling ลดลงจากปกอน เปนจำนวน 4.15 ลานบาท หรอคดเปนลดลงรอยละ 8.03 เนองจาก เมอปทแลวบรษทฯ และบรษทยอย มการจดงานประชาสมพนธรวมกบลกคาทเปนสถานโทรทศนระบบดจตอลเพอเปนการโปรโมทและประชาสมพนธคอนเทนตใหเปนทรจกแกผชมซรย ซงปนไมไดมการจดงานดงกลาวแลวภายหลงทคอนเทนตของบรษทฯเปนทรจกและตดตลาดมากขน ทำใหคาใชจายในการขายและการบรการลดลง Admin เพมขนจากปกอน เปนจำนวนเงน 113.37 ลานบาท หรอคดเปนเพมขนรอยละ 82.27 เนองจาก คาใชจายพนกงานและผบรหาร เพมขนเทากบ 45.03 ลานบาท คดเปนเพมขนรอยละ 51.88 ซงสอดคลองกบจำนวนพนกงานทเพมขนเพอรองรบกบการขยายตวของธรกจ คาเผอหนสงสยจะสญ มการตงคาเผอหนสงสยจะสญเพมเปนจำนวน 21.13 ลานบาท (โดย ณ วนท 28 กมภาพนธ 2563 บรษทฯและบรษทยอยไดรบชำระเงนจากลกหนทถกตงคาเผอหนสงสยจะสญแลว12.70 ลานบาท และรบชำระเปนเชคลงวนทลวงหนาไวแลวเปนจำนวน 25.60ลานบาท) และ รายการขาดทนจากอตราแลกเปลยน เพมขนเทากบ 34.88 ลานบาท ซงมสาเหตหลกมาจากคาเงนบาททแขงตวมากขนและบรษทฯมลกหนการคาตางประเทศเปนจำนวน 24.11 ลานเหรยญสหรฐอเมรกา
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Financial Highlight

Gross profit & Gross profit margin The increase in net profits and net gross profit from last year

was due to the rise in revenue from program rights, and most of the cost of program rights is the amortization expenses which is increase rate lower than the growth of income.

ROA & ROE The increase of ROE was due to the increase in total revenue

and net profit margin. Although the operating result was growth, the assets was Sharply increased due to the increase of AR. Thus, there is no significant change of ROA

increase of ROA was due to significant growth in operating lt

107259

395488 525

696

35.2%

56.7%46.9%

42.3% 37.4%41.1%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%

0

200

400

600

800

2014 2015 2016 2017 2018 2019

Gross profit Gross profit Margin

49

133164

188228

253

16.3%

29.2%

19.4%

16.2% 16.0% 14.8%

0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%

0

50

100

150

200

250

300

2014 2015 2016 2017 2018 2019

Net Profit Net profit Margin

12.6% 15.0% 12.0%7.8% 7.1% 7.0%

50.9%46.4%

35.2%

15.8%11.7% 11.8%

2014 2015 2016 2017 2018 2019

ROA ROE

Gross profit (THBm) ROA & ROE

Net profit (THBm)

Presenter
Presentation Notes
มกำไรสทธเทากบ 252.81 ลานบาท ซงเตบโตเพมขนเทากบ 25.13ลานบาท หรอคดเปนรอยละ 11.04 เนองจากรายไดรวมเพมขนในอตรารอยละ 20.25 แตจากการทบรษทฯ ไดลงทนซอคอนเทนตเพมขนเรอยมาตงแตป 2560 เพอรองรบการเตบโตของธรกจ รวมถงคาเงนบาททแขงตวมากขนทำใหบรษทฯเกดผลขาดทนจากอตราแลกเปลยนมากขนตามไปดวย สงผลใหอตราสวนรายไดรวมตอกำไรสทธลดลงจากรอยละ 16.00 เปนรอยละ 14.8
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Financial Highlight

730 1,044 1,696

3,139 3,251 4,006

539 6601,147

1,312 1,1971,791

191 384549

1,826 2,054

2,215

2.8

1.7 2.1

0.7 0.580.81

0

0.5

1

1.5

2

2.5

3

0

2,000

4,000

6,000

8,000

10,000

2014 2015 2016 2017 2018 2019Asset LiabilitiesShareholder's equity Debt to equity ratio (time)

0.91 0.78 0.561.34

4.58

1.47

2014 2015 2016 2017 2018 2019

0.951.1

0.99 0.971.11

1.25

2014 2015 2016 2017 2018 2019

Current ratio (time)

Intangible asset turnover (time)

Balance sheet composition (THBm) & D/E ratio (time)

Presenter
Presentation Notes
บรษทฯและบรษทยอยมอตราสวนสภาพคลองเทากบ 1.47 เทา และ 4.58 เทา ตามลำดบ และมอตราสวนสภาพคลองหมนเรว เทากบ 1.41 เทา และ 4.30 เทา ตามลำดบ โดยมสาเหตสำคญมาจากการทบรษทฯและบรษทยอย มหนกทจะครบกำหนดชำระภายในเดอนกรกฎาคม 2563 ทำใหตองจดประเภทหนกดงกลาวเปนหนสนหมนเวยน ทำใหยอดคงเหลอของหนสนหมนเวยนเพมขน จงทำใหอตราสวนสภาพคลองและมอตราสวนสภาพคลองหมนเรว ของบรษทฯและบรษทยอยปรบตวลดลง
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Intangible assets – Program rights

Target 2020

Program rights 800

Total CAPEX 800

296

62

234 340

120

447

965

389

1,023

777

616

1,184

776 779

1,181 1,189

930

1,447

Acquisitions Amortize program rights NBV

2014 2015 2016 2017 2018 2019

CAPEX (THBm)

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Accounts receivable

ลกหนการคา - กจการทไมเกยวของกน 31.12.62 % 31.12.61 % Change % Changeยงไมถงกาหนดชาระ 759,529 43% 579,567 52% 179,962 31% คางชาระ

นอยกวา 3 เดอน 219,679 12% 136,898 12% 82,781 60% 3 - 6 เดอน 312,846 18% 90,792 8% 222,054 245% 6 - 12 เดอน 508,801 29% 302,840 27% 205,961 68% มากกวา 12 เดอน 1,952 0% 8,151 1% (6,199) (76%)

รวม 1,802,807 101% 1,118,248 100% 684,559 61% หก คาเผอหนสญ (23,675) (1%) (2,028) (0%) (21,647) 1,067% รวมลกหนการคาสทธ 1,779,132 100% 1,116,220 100% 662,912 59% Day in AR turnover 316 Days 241 Days

Presenter
Presentation Notes
ปจจบนสำหรบลกหนการคาทคางชำระเกน 6 เดอน บรษทฯ ไดรบการชำระจากลกคาแลวเทากบ 264.86 ลานบาท และสำหรบลกหนทคางชำระนอยกวา 6 เดอนนน บรษทฯ กไดรบชำระมาแลว 95.98 ลานบาท (ขอมล ณ 28 กมภาพนธ 2563) นอกจากนบรษทฯมลกคาตางประเทศจำนวน 4 รายจาก 6 รายใหญทไดรบการตรวจสอบความมตวตนและพจารณาความสามารถในการชำระหนจากสถาบนการเงนในประเทศแหงหนงแลวเพอรบทำประกนการชำระหนของลกหน และปจจบนบรษทฯอยอยในขนตอนการทำสญญารบประกนการชำระหน
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Listing in the Stock Exchange of Thailand (SET)

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3rd-4th Quarter 2020Trading in the SET commences

Feb 2020BOD approved the stock dividend payment.

Apr 2020AGM approves stock dividend payment.

May 2020BOD meeting approves motion to register stock in SET.

2nd–3rd Quarter 2020Registration process with SEC

Timeline

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เพมสภาพคลองในการซอขายหน

ชวยใหการเคลอนไหวของราคามเสถยรภาพ

ปลดลอกนกลงทนสถาบน กองทนทงในและตางประเทศ

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CONVERTIBLE BONDA worldwide distributor of BEC, International sales

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หวขอ รายละเอยด

จานวนเงนตน 1,200 ลานบาท

อตราดอกเบย 3% ตอป

อาย 5 ป นบจากวนออกหนก

ราคาแปลงสภาพ 8 บาทตอหน

ระยะเวลาใชสทธแปลงสภาพ หลงครบกาหนด 1 ปนบจากวนออกหนก

หนสามญเพอรองรบการแปลงสภาพ 150 ลานหน คดเปน 21.74%

วธการจดสรร จดสรรใหกบ North Haven Thai Private Equity ซงเปนนกลงทนสถาบน

ภายใตการบรหารของ Morgan Stanley

Convertible Bond

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จายชาระคนเงนกยม 600 ลานบาท

ใชในการขยายธรกจในอนาคต 300 ลานบาท

ใชเปนเงนทนหมนเวยน 300 ลานบาท

Financial cost ของ เงนกระยะยาว เทากบ 7.8-8%

Convertible Bond

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ลดภาระตนทนทางการเงน

เพมสภาพคลองในการดาเนนธรกจ

Morgan Stanley เปนนกลงทนสถาบน ทเขามาลงทนระยะยาว

พนธมตรทจะสามารถเขามาชวยเหลอ ในเรองการขยายธรกจไปยงตางประเทศ

Convertible Bond

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BUSINESS OUTLOOK

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International Sales - Master Pieces of Indian Series

JKN acquired the top ranks Indian series

with high budget productions for selling

international markets, such as Porus, Prithi

Vallabh, and Vigharnarta Ganesh. Last

year, we were selling our series for the

amount more than Baht 600 million to The

international markets include Cambodia,

Lao PDR, Myanmar, Vietnam.

Indian Series

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International sales - Great series from Channel 3HD

We are the sole worldwide sole distributor of BEC World* which

we got the exclusive rights of more than 90 series of Channel

3HD, including romantic comedy, melodrama, and horror for

international sales. We were selling the Channel 3HD series to

Philippines and Malaysia.

Thai series

*Excluding China, Macau, HongKong, Cambodia, Myanmar, Vietnam

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International sales - JKN & BEC contract Renewal

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Filmart Hong KONG - Mar 2019

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Filmart Hong KONG - Mar 2019

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Content Asia - Aug 2019

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MIPCOM France - Oct 2019

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ATF Singapore - Dec 2019 (Upcoming)

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ATF Singapore - Dec 2018 (Last year)

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Material

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• We work with leading broadcasters and digital platforms around the world

• We have output deals with major clients such as GMA (Philippines) and Dimsum (Malaysia, Brunei & Singapore).

• We craft a volume of stand alone linear & digital deals throughout the year and around the globe.

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Our Business partner

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• We recently closed about 500 hours of content to GMA

• Currently in discussion with ABS-CBN for other titles.

• We also target to push Thai Content channel to Cignal which is no.1 Pay TV platform in the Philippines.

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OUR Market Penetration Strategy: Philippines

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Philippines - Price proposed

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• We have licensed over 425 hours of Thai content to Dim Sum in Malaysia an OTT player covering Malaysia, Brunei and Singapore. Dim Sum will soon be launching in Indonesia later part of the year.

• Astro is the largest DTH platform in Malaysia and we are in discussion for some horror content.

• While with Media Prima, they would like Thai content with Chinese Subtitles.

OUR Market Penetration Strategy: Malaysia, Brunei and Singapore

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• We have to prioritize Indonesia due to its 261M population.

• Thai content has never been exposed in the Indonesian market but we are confident that Indonesians will be able to accept Thai dramas. Therefore, we will be working with Rajawali TV in Indonesia in incubating Thai drama in their network.

OUR Market Penetration Strategy: Indonesia

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Korea

• We closed deal 265 hours of Thai drama to TVA (Korea)

Japan

• We are in discussion with Hulu Japan.

OUR Market Penetration Strategy: South Korea and Japan

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The company licensed from CNBC to translate items with content

about business and economic broadcasts around the world in

order to sell to the broadcast tv channels as Thailand language.

Domestic Thailand In addition, the company has received

permission to produce items in the format of CNBC by MC

Thailand.

At present, the company has started to sell items made the

translation with Channel 3 and Bright TV.

In the future, the company will bring the winnings from the IPO to

develop Studio filming for CNBC.

ตวอยางรายการในเครอ CNBC

JKN CNBC Project

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CNBC Studio

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Q&A