2Q20 Results Meeting& 2H20 Highlights

14 August 2020

Virtual Conference

2Q20 Performance

Summary

Quarterly Financial Results ▪ 2Q19 - 2Q20

95 92 66

186

109

11% 10%7%

19%

13%

2Q19 3Q19 4Q19 1Q20 2Q20

-7%YoY-15%QoQ

542 443 465 500 586

262 270 250

376 221 96 174 181

109 26

900 887 895 985833

44% 44% 41%

56%53%

2Q19 3Q19 4Q19 1Q20 2Q20

(THB mn, %)

Revenue and GPM

Net Profit and NPM

Commerce

Media

Music & Others

Commerce

Media

Music & Others

%GPM

(THB mn, %) +14%YoY-42%QoQ

%NPM

• Highest record commerce revenue from higher of every sales channels

• Lower cost of CH8 from reductions in content cost, license, USO and MUX fees

3

• A rise in net profit from higher GPM and well-managed expenses

6M Financial Results ▪ 1H19 vs 1H20

205 295

11%16%

1H19 1H20

1,105 1,086

549 597

175 135

1,829 1,818

45%54%

1H19 1H20

-1%YoY(THB mn, %)

Revenue and GPM

Net Profit and NPM

Commerce

Media

Music & Others

Commerce

Media

Music & Others

%GPM

(THB mn, %) +44%YoY

%NPM

• Additional media revenue from content licensing without additional cost

• Lower cost of CH8, radio and music in proportion to a decrease in each revenue

4

• A rise in net profit from higher GPM and lower finance cost from disappearance of deferred interest

Commerce Performance

236 191 190 231 261

242 217 239

239 270

65

35 36

29

55 542

443 465 500

586 68% 66% 64% 65% 68%

2Q19 3Q19 4Q19 1Q20 2Q20

%GPM

(Revenue, THB mn)

YoY : +8%QoQ : +17%

Inbound

Outbound

Online & Others

Key Highlights

• Improved inbound & outbound sales momentum by 13%QoQ from growing customer to 1.4m people, coupled with sales channel expansion in Q1-Q2

• Predictive Dialing System (PDS) adopted more precisely to fully enhance efficiency of the call center system in maximizing customer contact

• “RS Mall Mid Year Super Sale”, another grand sales promotion continued to boost up the sales efficiency despite the market downturn

• High GPM at 68% showing the company’s ability to manage its overall product combination that most profitable and offering products that specifically address health care amid Covid-19 situation

Leverage on expanding customer base & sales channels

Effective marketing campaign and promotion

High gross margin maintained

5

1.4M customers

A fully implemented software tool

TV Performance

188 204 170

336

198

193 209 174

336

199

-33% -26%-53%

36%

4%

2Q19 3Q19 4Q19 1Q20 2Q20

Satellite TV

%GPM

(Revenue, THB mn)Key Highlights

• 2Q20 TV ADEX contracted as a result of Covid-19 pandemic and weak private consumption. However, people have had to spend more time at home, resulted in an unchanged of the number of TV viewers

• Adaptability of Channel 8’s sales and content production approaches, including content management in international markets and on other online platforms resulted in similar quarterly income of Channel 8 during 2019

• Content production cost plunged over 25% compared to quarterly cost in 2019 from content cost management and lower operating cost benefited from license fee waiver, a reduced rate of annual contribution to USO fund and a ceasing of MUX fee since June

A huge drop in TV ADEX

Unmatched CH8’s performance

Effective cost controls & benefits

YoY : +3%QoQ : -41%

6

Radio Performance

47 42 55

33 23

23 19

21

6

70 61

76

39

23

70%78%

72%81%

57%

2Q19 3Q19 4Q19 1Q20 2Q20

(Revenue, THB mn)

%GPM

Key Highlights

• “COOLfahrenheit”, No.1 radio station for Easy Listening category, showing a decrease in revenue in accordance with overall industryand no activities for listeners during Covid-19. However, both popular “COOL Outing” and “Ink Eat All Around” activities have resumed in Jul

• “COOLanything” new feature under the concept of “Enjoy music and shopping in one app”, developed to support the commerce business

Radio media industry shrank and no activities-linked

YoY : -68%QoQ : -42%

7

Media

Event

Turn online music fans into customers

Start in Q3

Music & Others Performance

55 86 83 74

24

41

88 98

35

2

96

174 181

109

26

55%64% 62% 64% 66%

2Q19 3Q19 4Q19 1Q20 2Q20

(Revenue, THB mn)Key Highlights

• Main revenues from YouTube, music downloading and to license music catalogue to bolster income streams

• A ceasing of events and concerts during Covid-19 measures causing a decline in other revenue

Online-generated revenue

Preventive measures implemented for Covid-19

YoY : -73%QoQ : -76%

%GPM

8

Music

Event & Concert

2H20 Highlights

Entertainmerce Strategy

10

RS GROUP

8M

Age 40+

Urban & Rural 70%

5M

(1.4M Customers)

Age 35-55

Urban 70%

32M subscribers &

9M followers

Age 18-50

Nationwide

4M

Age 25-44

BKK 65%

REACH

Commerce Media | TV Media | Radio Music

11

Content marketing through “Storytelling” Campaign & Promotion

Commerce Business Highlights

2x Inbound sales uplift

12

Product Lineup Technology Adopted

Partner

Customer Frequency

1.4 >> 1.6 M

+14%

1.9 >> 2.5 x/Year

+32%

S.O.M. DTX Probiotics

S.O.M. MultiplusCollagen

S.O.M. Choles

S.O.M. OVOMOV

S.O.M. Probio-10

REJU Real Bird Nest Drink

Meal Replacement

>20 SO per month

Commerce Business Highlights

Fashion FMCG Home & Living

TV Business Highlights

13

New Programs TV Entertainmerce Programs

Expected THB 50m from licensing

to be booked in 2H20

Expected THB 1m in revenue per slot

Radio Business Highlights

14

Lifestyle Online Shopping

No. of active listener : 150K per day

Product : Lifestyle & Gadget

Target customer : Age 25-44, BKK 65%

Storytelling : By COOLJ

To boost online sales by 80%YoY

Music Business Highlights

15

To turn >30M music fans into customers, starts in Oct

OPTION 3

Presentation for Lifestar Only

RS Investor Relations+662 037 8125-6

http://www.rs.co.th/investor.htmlir@rs.co.th

https://www.facebook.com/RSInvestorRelations/https://twitter.com/rs_ir

ir_rs