Corporate INFO

Mr. Phoon Chiong Kit
Chairman of the Board of Directors and Chief Executive Officer

Dear Shareholders,

Since the beginning of the year 2020, all countries around the world have been affected by the spread of COVID-19. It is the most severe pandemic and has affected the world economy badly. Recently, the Bank of Thailand has lowered its GDP forecasts for 2020 in Thailand to a negative 8.1% from a negative 5.3%. This is considered the worst economic contraction in Thai history, even more severe than the Tom Yum Kung crisis in 1997. The Asian Development Bank predicts that the GDP of ASEAN countries will only grow 1.0%, down from the previous year’s growth rate of 4.4%, making 2020 a most challenging year for businesses in Thailand and any expansion of the business networks in international markets, especially ASEAN.

At present, Master Ad Public Company Limited (“MACO”) has modified its business strategy from being just a provider of Out-of-Home advertising media in Thailand to laying a foundation for expansions of the Out-of-Home media business into international markets, especially in the ASEAN market. Material changes to MACO business during January - March 2020 was that the Company has restructured the advertising media business in Thailand. Plan B Media Public Company Limited (“PlanB”), the leader of Out-of-Home media of Thailand, has become a 19.96% shareholder in MACO. As part of this deal, PlanB will become responsible for managing, selling, and marketing all of MACO’s domestic advertising media. The Company will only remain as a media owner in the country. This allows the Company to focus its attention on expanding the business into international markets. This the collaboration will help reduce MACO’s costs by combining the experienced sales and marketing teams of MACO and PlanB and allow the Company to jointly develop and create advertising media packages that can better attract the attention of consumers and media buyers. As a result of discussions between the two management teams, the Company will write-off non-profitable billboards and retain those billboards with better locations that can offer the most effective advertising media exposure. These superior locations will allow the Company to create better and more cost-effective advertising returns. The Company is confident that, with an extensive billboard network of the group in the excellent locations, combined with a wider variety of media contents from PlanB, the Company will be able to increase its market shares in the competitive Out-of-Home Thai media market.

As for international markets, the Company has seen continued an improvement over the past years, especially in Malaysia. Performance in Malaysia reached breakeven earnings since before interest and tax, from our advertising media operations focused on mass transportation systems and airports. In Indonesia, where the Company has the right to manage advertising media on the first MRT line of Jakarta, the Company turned a profit for its first year of operations in April 2019. Unfortunately, the impact of the Coronavirus outbreak has thrown this initial success in our international media business into disarray. We are looking to renegotiate some terms and we will strive to build on our success so far. Our plans will be ready to continue working in the international market once the COVID-19 crisis is past. We will continue to become the leader of the Out-of-Home media business in ASEAN as originally planned.

Since the COVID-19 pandemic started in early 2020, the Company has given priority to the health and safety of all our employees. The Company has closely watched and monitored the pandemic situation, and has established measures to prevent the spread of the COVID-19 in our offices including; temperature recording each time before entry into the office building, reducing any exposure that may be a source of disease spread, allocating sanitary masks, providing hand washing gels at various points, and spraying disinfectant regularly in the office. Apart from internal action taken within the Company, we have also taken this opportunity to contribute to society at large through sharing advertising space for COVID-19 content free of charge, including publishing a list of hospitals with screening services through the video series “COVID-19 easy to prevent, early detection, early treatment” that is broadcast nationwide on the Company’s digital screens. In addition, we have collaborated with the Department of Mental Health to publicize ways by which individuals can manage stress during the quarantine and have also supported providing necessary personal protection equipment for the Khlong Toei community. These are our modest efforts to create a sustainable feeling of social responsibility for all stakeholders in our community

I would, on behalf of the Board of Directors, our executives, and employees, also like to express our concern and deliver words of encouragement to all our stakeholders who maybe affected by the pandemic situation of COVID-19. Last, but certainly not least, I would like to express gratitude to the management team, all our staffs, for the commitment they have shown in executing the Company’s strategy with full dedication to enable us to overcome this crisis together.