Annual Report 2013

RS PUBLIC COMPANY LIMITED ANNUAL REPORT 2013

02

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Contents 1 Message from the Chairman and Chief Executive Officer……..........................[002] 2 Management Team…………………………………………………………………[005] 3 Policy and Business Overview……………………………………………………..[016] 4 Business Descriptions……………………………………………………………..[018] 5 Risk Factors………………………………………………………………………..[040] 6 Property used in the business……………………………………………………..[044] 7 Legal disputes……………………………………………………………………..[047] 8 General information and other important information...................................[049] 9 Securities and Shareholder Information……………………………………………[051] 10 Management Structure……………………………………………………………[054] 11 Corporate Governance…………………………………………………………….[070] 12 Responsibilities toward society……………………………………………………[085] 13 Internal Control and Risk Management……………………………………………[096] 14 Related Party Transactions………………………………………………………..[098] 15 Financial Highlight…………………………………………………………………[104] 16 Management Discussion and Analysis…………………………………………….[111] 17 Financial Statement………………………………………………………………..[124]

MEDIA REVOLUTIONIST

01

Message from the Chairman and Chief Executive Officer

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Message from the Chairman and Chief Executive Officer

Mr. Surachai Chetchotisak $IBJSNBOǰBOEǰ$IJFGǰ&YFDVUJWFǰ0GųDFS

MEDIA REVOLUTIONIST

03

Dear Shareholders, The 2013 was another extremely important year for operators of the television media industry in Thailand as the National Broadcasting Commission had stipulated the television licenses auction for the frequency band type, or licenses for operating normal television business or under the normal well-known name as the free TV. RS is the television business operator for the non-frequency band type or satellite television that already has experiences and readiness in every aspect whether on the personnel, production of contents on entertainment WBSJFUZǰBOEǰOPSNBMǰNBUUFSǰBTǰXFMMǰBTǰųOBODJBMǰDBQBCJMJUZ ǰ$BSFGVMǰTUVEJFTǰIBWFǰCFFOǰNBEFǰPOǰEFUBJMTǰBOEǰSFUVSOǰPOǰ investment on the license auction for television of the frequency band type so that business investment on 15 years duration for this license auction generates the best long and short term results to the Company’s stakeholders.

5IFÇ°$PNQBOZÇ°IBEÇ°EFDJEFEÇ°UPÇ°QBSUJDJQBUFÇ°JOÇ°UIFÇ°MJDFOTFÇ°BVDUJPOÇ°PGÇ°UIFÇ°WBSJFUZÇ°HSPVQÇ°GPSÇ°TUBOEBSEÇ°EFĹłOJUJPOÇ°UZQFÇ° by considering on cost of the license fee as well as the annual transmission cost, the possible access rate through terrestrial networks after covering most parts of the country, and the form of television reception via satellite to most households in the country. After considerations had been made on the mentioned factors, the Company, then, had auctioned on the license for television business operation of the frequency band type at the cost of #BIUÇ° Ç°.JMMJPO Ç°5IFÇ°$PNQBOZÇ°XBTÇ°DPOĹłEFOUÇ°UIBUÇ°UIFÇ°QSJDFÇ°XBTÇ°BÇ°TVJUBCMFÇ°DPTUÇ°UIBUÇ°DPVMEÇ°HFOFSBUFÇ°QSPĹłUBCMFÇ° CVTJOFTTÇ°PQFSBUJPOÇ°GSPNÇ°UIFÇ°ĹłSTUÇ°ZFBSÇ°CZÇ°DBQJUBMJ[JOHÇ°POÇ°UIFÇ°TVDDFTTÇ°GSPNÇ°NBOBHJOHÇ°UIFÇ°TBUFMMJUFÇ°UFMFWJTJPOÇ°DIBOOFMÇ° 8. Broadcasting will be ready for transmission on April 1, 2014 as per announcement from the test transmission from the National Broadcasting Commission.

The Company anticipated that the upgrading of satellite television channel 8 to the general television business operator, or the free TV, that had nationwide access rate, would enable the increment on investment expansion capability on various contents to their full capacities, and also increase more competitive edge. Moreover, return on investment to stakeholders would increase in the long term.

Overall Thai economic situation in 2013 showed a rather good growth in the 1st quarter but decelerating sign started to show during the 2nd quarter due to decreasing export from slackening world economy and strengthening of the Baht. In the 3rd quarter, the economy still registered reduced growth due to weakening household spending, and reducing government and private sector’s spending. Economic growth came to a rapid halt during the last quarter GSPNǰQPMJUJDBMǰDPOŴJDUǰUIBUǰHFOFSBUFEǰTJODFǰMBUFǰJOǰ0DUPCFS ǰBOEǰUIFǰ#BOLǰPGǰ5IBJMBOEǰIBEǰGPSFDBTUFEǰUIFǰ5IBJǰPWFSBMMǰ economic growth to 3%.

The advertising industry unavoidably received such impact from overall weakening of the economy. Overall advertising expenses registered only 3% growth, while the advertising budgets of the original television operators had only 2% growth, however, advertising budgets of the satellite television operators’ group registered 23% growth.

RS, as the satellite television operator in 2013, registered a high 83% growth due to strength of its contents which were continuously accepted very well from audiences and advertising buyers alike. Thus, the Company had opportunity to adjust its advertising rates for the Channel 8, and Sabaidee TV to 100% during early 2013, while the remaining 2 stations i.e., You Channel and Star Max received more recognition from their audiences and registered better audience rating gradually.

Radio media still recorded continuous growth as one station playing international music had been added to the Company’s management during the end of the 1st quarter under the “COOL Celsius� brand in order to build on the success of the Thai music station “COOL Fahrenheit� which occupied number one popularity station for more than 10 years.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Overall picture of our media business indicated 67% growth rate which showed a very satisfactory successful step forward into a media business operator from now on. On the management of business license of the La Liga football, the long and short term membership applications had been opened to all interested football fans to view live coverage of the Spanish La Liga football on special channel for the whole season. This included another alternative to consumers who preferred to purchase the new set top box, the opportunity to continuously view an important football league of the world commencing from last season by adding special channel, the “Sun Channel La Liga�, into the new set top box under the name “Sunbox�.

Music business is still considered as an important business as it is the original source of contents and most of the $PNQBOZÄ´TÇ°FNQMPZFFTÇ°IBWFÇ°FYQFSJFODFTÇ°UISPVHIÇ°JNQPSUBOUÇ°NVTJDÇ°MBCFMÇ°DPNQBOJFTÇ°TVDIÇ°BTÇ°Äś:FTÇ°.VTJDġ Ç°Äś,BNJLB[Fġ Ç° “Gardenâ€?, and “R Siamâ€? that cover various groups of listeners. Music business, we believe, is still important to the Company in a long term but the income generating’s patterns may have changed. The Company is always ready to experiment with the new business models all the time as it is ready from the last important adjustment a few years BHP Ç°)FODF Ç°UIFÇ°$PNQBOZÇ°IBTÇ°BÇ°WFSZÇ°Ĺ´FYJCMFÇ°CVTJOFTTÇ°PQFSBUJPOÇ°XJUIÇ°NBYJNVNÇ°FGĹłDJFODZÇ°BTÇ°UIJTÇ°DBOÇ°CFÇ°TFFOÇ°GSPNÇ° UIFÇ°DPOUJOVPVTMZÇ°IJHIÇ°HSPTTÇ°QSPĹłUÇ°SBUFÇ°GPSÇ°NBOZÇ°ZFBST On corporate social responsibility, RS still adhered to continuously participate in social activities together with its entertainment business operations. In 2013, RS had joined with many social projects including arrangement of some internal activities in which some projects could be mentioned as follow; Project “RS - Coordinate our Hearts to Help 'MPPEÇ°7JDUJNTġǰUPÇ°IFMQÇ°Ĺ´PPEÇ°WJDUJNTÇ°JOÇ°NBOZÇ°BSFBTÇ°JOÇ°$IPOCVSJ Ç°6CPOÇ°3BUDIBUIBOJ Ç°1SBDIJOÇ°#VSJ Ç°BOEÇ°1IJUTBOVMPLÇ° provinces; "“Do For Dadâ€? project (This card is for father), in order to pay respect to His Majesty the King and show love for fathers of the chronically ill children at the Chulalongkorn Hospital; “ Fostering the Elephant Familyâ€? project in conjunction with the Thai Society for the Prevention of Cruelty to Animals (TSPCA) by inviting people and general public to foster the young elephants, and taking care and help the growing young elephants to live in proper care without having to become stray elephants. Moreover, in 2013, “CSR Branding for Sustainabilityâ€? policy was stipulated BOEÇ°JOUSPEVDFEÇ°UPÇ°BMMÇ°XPSLJOHÇ°VOJUTÇ°JOÇ°PSEFSÇ°UPÇ°BQQMZÇ°FGĹłDJFODZÇ°JOUPÇ°UIFJSÇ°CVTJOFTTÇ°PQFSBUJPOT Ç°TIPXJOHÇ°SFTQPOTJCJMJUZÇ° towards society, and for the Company’s business sustainability.

Application of the good corporate governance is always important to RS’s business operations. From the research results on the Corporate Governance of Thai Listed Companies 2013, the Company was ranked in the “Excellentâ€? or the “Excellent CG Scoringâ€? group. The Company reviews the good corporate governance policy and business ethic annually, and all Directors, Executives, and employees consistently comply with the policy. Not only being successful GPSÇ°CVTJOFTTÇ°PQFSBUJPOT Ç°XFÇ°BSFÇ°EFUFSNJOFEÇ°JOUPÇ°CFDPNJOHÇ°PSHBOJ[BUJPOÇ°UIBUÇ°CVJMETÇ°TVTUBJOBCMFÇ°TPDJFUZ Ç°BOEÇ°GPSNTÇ°UIFÇ° CBMBODFÇ°QMBUGPSNÇ°DPWFSJOHÇ°UIFÇ°FDPOPNJD Ç°TPDJBMÇ°BOEÇ°FOWJSPONFOU Ç°JODMVEJOHÇ°HFOFSBUFTÇ°CFOFĹłUTÇ°UPÇ°TIBSFIPMEFSTÇ°JOÇ°UIFÇ° long term as well.

"DIJFWFNFOUÇ°XJUIJOÇ°UIFÇ°34Ç°PSHBOJ[BUJPOÇ°SFTVMUFEÇ°GSPNÇ°XPSLJOHÇ°UPHFUIFSÇ°BTÇ°UFBNXPSLÇ°VOEFSÇ°DMFBSÇ°WJTJPOÇ°BOEÇ°UBSHFU Ç°0OÇ° behalf of the Company’s Board of Directors, we would like to thank shareholders, customers, government agencies, and sponsors, and most important of all, our employees and artists who dedicated their bodies and minds by VOJUJOHÇ°JOÇ°NPWJOHÇ°PVSÇ°DPNQBOZÇ°GPSXBSEÇ°TUSPOHMZÇ°BOEÇ°ĹłSNMZ Ç°5IFÇ°$PNQBOZÇ°XPVMEÇ°OPUÇ°CFÇ°BCMFÇ°UPÇ°PWFSDPNFÇ°PCTUBDMFTÇ° and crisis many times without physical and moral supports from all our allies in every aspect. The Company also SFBMJ[FEÇ°UIFÇ°JNQPSUBOUÇ°PGÇ°UFBNXPSL Ç°BOEÇ°UIFÇ°PGGFSJOHÇ°PGÇ°HFOFSPTJUZÇ°UPÇ°FBDIÇ°PUIFS Ç°BOEÇ°XPVMEÇ°MJLFÇ°UPÇ°TFFÇ°UIFÇ°TIBSJOHÇ° of kindness among each other as well as showing compassion to the underprivileged people in society. These would be in coordination with our corporate strategy in 2013 as the “Media Revolutionistâ€? that presented variety of quality entertainment in a different form and always with a sense of social responsibility.

MEDIA REVOLUTIONIST

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Management Team

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

M rs .

Pornpan Techa run

g

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Mr. Darm Nana

ikul

Mr. Sorat

Van

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Mr. S

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Gen era l

m

anichsamai roj P Pa i

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Mr. Da

Peslapunt

Pro ate oci

Ass

fessor Witay

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urachai Chetchotis ak Mr. S

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06

MEDIA REVOLUTIONIST

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Mr. Surachai Chetchotisak

Age : 51 Years Position : $IBJSNBO ǰ$IJFGǰ&YFDVUJWFǰ0GųDFS Shareholding : 32.394 % Education : Honorary Docterate Degree of Marketing, ǰǰǰǰǰǰ$IBOESBLBTFNǰ3BKBCIBUǰ6OJWFSTJUZ Bachelor’s degree of Political Sciences, ǰǰǰǰǰǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰ Thai Institute of Directors Training : Director Accreditation Program (DAP) Year 2003

Experience : 2012 - present Chairman RS Public Company Limited 2003 - present Chairman of the Executive Committe RS Public Company Limited Ç° Ç°QSFTFOUÇ°Ç°Ç°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÇ° RS Public Company Limited Directorships in other companies that are not owned by the RS Public Company Limited : Director of Chetchotisak Co.,Ltd. Director of SS2C Co.,Ltd. Director of Tiger Fun Co.,Ltd. Director of Primo Posto Co.,Ltd.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Mrs. Pornpan Techarungchaikul

Age : 43 Years Position : Director, Secretary to the Board of Directors and Company Secretary ǰ ǰǰǰ$IJFGǰ0QFSBUJOHǰ0GųDFS Shareholding : None Education : Master degree (MBA) from Sasin Graduate institute ǰǰǰǰǰǰPGǰ#VTJOFTTǰ"ENJOJTUSBUJPOǰPGǰ$IVMBMPOHLPSOǰ6OJWFSTJUZ ǰǰǰǰǰ#BDIFMPSǰEFHSFFǰPGǰ4UBUJTUJDTǰ$IVMBMPOHLPSOǰ6OJWFSTJUZǰǰǰǰ Thai Institute of Directors Training : ǰǰǰǰǰ%JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Director Accreditation Program (DAP) Year 2004

Experience : 2008 - present

Secretary to the Board of Directors and Company Secretary RS Public Company Limited 2007 - present $IJFGǰ0QFSBUJOHǰ0GųDFS RS Public Company Limited 2004 - present Director RS Public Company Limited 2003 - 2007 Executive Vice President RS Public Company Limited 2001 - March 2003 Assistant Managing Director Golden Land Property Development Public Company Limited 1999 - July 2001 Assistant Vice President SG Securities Co., Ltd. Directorships in other companies that are not owned by the RS Public Company Limited : None

MEDIA REVOLUTIONIST

Mr. Darm Nana

Age : 44 Years Position :Ç°%JSFDUPS Ç°$IJFGÇ°'JOBODJBMÇ°0GĹłDFS Shareholding : None Education : Master of Business Administration (MBA), 6OJWFSTJUZÇ°PGÇ°/PUSFÇ°%BNF Ç°*OEJBOB Ç°6 4 "Ç°Ç° Bachelor degree of Arts in Economics (BA Econ), 5IBNNBTBUÇ°6OJWFSTJUZÇ° Thai Institute of Directors Training : %JSFDUPSÇ°$FSUJĹłDBUJPOÇ°1SPHSBNÇ° %$1 Ç°:FBSÇ° Director Accreditation Program (DAP) Year 2008

Experience : 2007 - Present Director RS Public Company Limited Ç° Ç°1SFTFOUÇ°Ç°Ç°$IJFGÇ°'JOBODJBMÇ°0GĹłDFS RS Public Company Limited 2002 - 2007 Senior Vice President Corporate Banking, HSBC Thailand Directorships in other companies that are not owned by the RS Public Company Limited : None

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Mr. Danaisidh Peslapunt

Age : 58 Years Position : Director, ǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰǰ&YFDVUJWFǰ7JDFǰ1SFTJEFOUǰ ǰ$FOUSBMǰ-FHBMǰ0GųDF Shareholding : None Education : Thai Barrister at Law from The Institute of Legal Education Thai Bar Association ǰǰǰǰǰǰ#BDIFMPSǰPGǰ-BXǰGSPNǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰ ǰǰǰǰǰǰ$FSUJųDBUFǰPGǰ*OUFMMFDUVBMǰ1SPQFSUZǰBOEǰ*OUFSOBUJPOBMǰ Trade from The Institute of Legal Education Thai Bar Association Thai Institute of Directors Training : %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Director Accreditation Program (DAP) Year 2008 Financial Statements for Directors (FSD) Year 2008

Experience : 2007 - present Director RS Public Company Limited ǰ ǰQSFTFOUǰǰǰǰ&YFDVUJWFǰ7JDFǰ1SFTJEFOUǰ ǰ$FOUSBMǰ-FHBMǰ0GųDF RS Public Company Limited 1997 - 2007 Law Consultant RS Public Company Limited Directorships in other companies that are not owned by the RS Public Company Limited : None

MEDIA REVOLUTIONIST

Mr. Sutthisak Prasatkarukarn

Age : 48 Years Position : Director, Managing Director, Thai Copyright Collection Co.,Ltd. Shareholding : None Education : ǰǰǰǰǰǰ.BTUFSǰPGǰ-BXTǰ -- . ǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰ ǰǰǰǰǰǰ#BDIFMPSǰEFHSFFǰPGǰ-BX ǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰǰ ǰǰǰǰǰǰ$FSUJųDBUFǰJOǰ#VTJOFTTǰ-BX ǰ3BNLIBNIBFOHǰ6OJWFSTJUZǰ Thai Institute of Directors Training : ǰǰǰǰǰǰ%JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ

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Experience : 2012 - present Director RS Public Company Limited 2003 - present Managing Director Thai Copyright Collection Company Limited Directorships in other companies that are not owned by the RS Public Company Limited : None

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Mr. Sorat Vanichvarakij

Age : 40 Years Position : Director Shareholding : 17.114 % Education : Master of Business Administration (MBA) Asian Institute of Technology (AIT) Bachelor degree of Marketing Business Administration Ç°Ç°Ç°Ç°Ç°Ç°"TTVNQUJPOÇ°6OJWFSTJUZÇ°PGÇ°5IBJMBOEÇ° "#"$

Thai Institute of Directors Training : Ç°Ç°Ç°Ç°Ç°%JSFDUPSÇ°$FSUJĹłDBUJPOÇ°1SPHSBNÇ° %$1 Ç°:FBSÇ°

Experience : 2012 - present Director RS Public Company Limited Ç° Ç°QSFTFOUÇ°Ç°Ç°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFS YT Group Company Limited Ç° Ç°QSFTFOUÇ°Ç°Ç°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÇ°Ç° VRK Engineering Company Limited Ç° Ç°QSFTFOUÇ°Ç°Ç°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÇ°Ç°Ç°Ç°Ç° Pan Asia Industrial Company Limited Directorships in other companies that are not owned by the RS Public Company Limited : YT Group Company Limited VRK Engineering Company Limited Pan Asia Industrial Company Limited

MEDIA REVOLUTIONIST

Mr. Phisit Dachanabhirom

Age : 72 Years Position : Independent Director and Audit Committee Chairman Shareholding : None Education : Bachelor Degree of Accounting, Ç°Ç°Ç°Ç°Ç°Ç°5IBNNBTBUÇ°6OJWFSTJUZÇ° Bachelor Degree of Commerce, Ç°Ç°Ç°Ç°Ç°Ç°5IBNNBTBUÇ°6OJWFSTJUZÇ°Ç° Ç°Ç°Ç°Ç°Ç°Ç°$FSUJĹłFEÇ°1VCMJDÇ°"DDPVOUÇ°/P Thai Institute of Directors Training : %JSFDUPSÇ°$FSUJĹłDBUJPOÇ°1SPHSBNÇ° %$1 Ç°:FBSÇ° Audit Committee Program (ACP) Year 2005 Director Accreditation Program (DAP) Year 2004

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Experience : 2007 - present Independent Director and Audit Committee Chairman RS Public Company Limited 2013 - present Director Don Muang Tollway Public Company Limited 2003 - present Director and Audit Committee Chairman Jaymart Public Company Limited 2002 - present Director and Advisor, Phuket International Hospital Company Limited 2001 - present Executive Chairman Professional Alliance Group Limited Directorships in other companies that are not owned by the RS Public Company Limited : Don Muang Tollway Public Company Limited Jaymart Public Company Limited Phuket International Hospital Company Limited Professional Alliance Group Limited Polipharm Company Limited

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

General Pairoj Panichsamai

Age : 67 Years Position : Independent Director and Audit Committee Shareholding : None Education : Master degree of Social Development National Institute of Development Administration (NIDA) Ç°Ç°Ç°Ç°3PZBMÇ°.JMJUBSZÇ°"DBEFNZÇ°4BOEIVSTUÇ°6 , Bachelor of Law, School of law LL.B., Ç°Ç°Ç°Ç°3BNLIBNIBFOHÇ°6OJWFSTJUZÇ°Ç°Ç°Ç° Thai Institute of Directors Training : %JSFDUPSÇ°$FSUJĹłDBUJPOÇ°1SPHSBNÇ° %$1 Ç°:FBSÇ° Audit Committee Program (ACP) Year 2007 Director Accreditation Program (DAP) Year 2007 Finance for Non-Finance Director (FN) Year 2007

Experience : 2007 - present Independent Director and Audit Committee RS Public Company Limited 2006 Deputy Supreme Commander, Supreme Command Headquarters (Army) 2005 Chairman of the RTA Advisory Board 2000 Commanding General Army Weapons Production Control Center Directorships in other companies that are not owned by the RS Public Company Limited : None

MEDIA REVOLUTIONIST

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Associate Professor Witaya Danthamrongkul Age : 51 Years Position : Independent Director and Audit Committee Shareholding : None Education : Master of Business Administration (MBA.) ǰǰǰǰǰǰ0SFHPOǰ4UBUFǰ6OJWFSTJUZ ǰ64" Bachelor degree of Economic (1st Honor) 5IBNNBTBUǰ6OJWFSTJUZ ǰ5IBJMBOEǰ Thai Institute of Directors Training : %JSFDUPSǰ$FSUJųDBUJPOǰ1SPHSBNǰ %$1 ǰ:FBSǰ Director Accreditation Program (DAP) Year 2007

Experience : 2007 - present Independent Director and Audit Committee RS Public Company Limited Present Associate Professor and Lecturer, Department of Human Resource and ǰ ǰǰǰǰǰǰǰǰǰǰ0SHBOJ[BUJPOǰ.BOBHFNFOU ǰ'BDVMUZǰPGǰ ǰ ǰǰǰǰǰǰǰǰǰǰ$PNNFSDFǰBOEǰ"DDPVOUBODZ ǰ5IBNNBTBUǰ6OJWFSTJUZ 2009 - present Independent Director and Audit Committee Chairman Prinsiri Public Company Limited 2006 - 2007 Director, Journal of Business Administration Faculty of Commerce and Accountancy ǰ ǰǰǰǰǰǰǰǰǰǰǰ5IBNNBTBUǰ6OJWFSTJUZ 2000 - 2001 Training Director Institute of Small and Medium Enterprises Development (ISMED) Directorships in other companies that are not owned by the RS Public Company Limited : Independent Director and Audit Committee Chairman, Prinsiri Public Company Limited

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

03

Policy and Business Overview

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MEDIA REVOLUTIONIST

Policy and Business Overview RS starting business from the jukebox and the tape record under the “Rose� brand by Mr.Kriengkrai chetchotisak and Mr.Surachai Chetchotisak in 1976. Before fully established with an investment of 50,000 baht behalf “Rose Sound�, which later changed its name to “RS Promotion 1992 Co.,Ltd� in 1992, including the relocation of a building, from 6SVQPOHǰ3PBEǰUPǰ$IFUDIPUJTBLǰ#VJMEJOHǰ4PJǰ-BEQSBPǰ ǰXJUIǰBOǰJOWFTUNFOUǰPGǰ ǰNJMMJPOǰCBIUǰFYQBOTJPOǰPGǰUIFǰ music business as a fully integrated entertainment company. In addition to releasing the album, which is the core business, the company also entered into other entertainment business. Such as the Radio Program, TV shows, TV series and movies. In 2003, RS listed on the Stock Exchange of Thailand and was renamed to “RS Public Company Limited� operating 3 major business such as Music Business, Show Business and Media Business until now. The company’s operations are grouped as follows:

RS Public Company Limited Music

Showbiz

Media

RS Public Company Limited

RS Public Company Limited

Television

Thai Copyright Collection Co.,Ltd.

K. Master Co.,Ltd.

RS Public Company Limited

RS Public Company Limited

Poema Co.,Ltd

YAAK Co.,Ltd.

COOLISM Co.,Ltd.

Blu Fairy Co.,Ltd.

K.Master Co.,Ltd

Nagasia Co.,Ltd. Aladdin House Co.,Ltd.

Radio

RS International Broadcasting & Sports Management Co.,Ltd. **

Dee Media & Production Co., Ltd

Publishing Idea Power Co., Ltd.***

Moderntrade RS In-store Media Co., Ltd. *

Temporarily Suspended.

- RS Film & Distribution Co., Ltd. - Avant Co., Ltd. - R.S. Sportmaster Co., Ltd. Ç°#BOHLPLÇ°0SHBOJ[FSÇ°$P Ç°-UE - R.S. Television Co., Ltd. - R Siam Co., Ltd. - S-One Sports Co., Ltd. * 65% shares held by RS Public Company Limited ** 83.33% shares held by RS Public Company Limited *** 25% shares held by Poema Co., Ltd. As at December 31, 2013

Vision The revolutionist that creates entertainment products with social responsibility Mission To offer quality entertainment products that meet our customer’s needs through the force of excellent human resource that is poised to respond to any changes and always explore new opportunities by adhering to the pprinciples of modern management and technology.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

04

Business Descriptions

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MEDIA REVOLUTIONIST

Business Descriptions At present, RS Group has 3 main core businesses which are the Music Business, Show Business and Media Business.

Revenue Structure 2011

Type of Revenue

2012

2013

share in total share in total share in total Amount revenue Amount revenue Amount revenue (Million Baht) (%) (Million Baht) (%) (Million Baht) (%)

Music Business

934.5

34%

883.2

31%

777.2

22%

Show Business

814.1

29%

718.8

26%

692.6

20%

Media Business

941.9

34%

1,193.0

42%

1,986.3

57%

50.8

4%

17.4

1%

5.5

1%

2,765.0

100%

2,812.4

100%

3,461.5

100%

Revenue from Other Business Total Revenues

4PVSDF Ç°Ç°5IFÇ°$PNQBOZÄ´TÇ°.BOBHFNFOUÇ°PCUBJOFEÇ°EBUBÇ°GSPNÇ°ĹłOBODJBMÇ°TUBUFNFOUTÇ°JOÇ° Ç° Ç°BOEÇ°SFBSSBOHFEÇ°UIFNÇ°BTÇ°QFSÇ°UIFÇ° Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°OFXMZÇ°EFĹłOFEÇ°SFWFOVFÇ°TUSVDUVSFÄ´TÇ°CVTJOFTTÇ°HSPVQT

Music Business RS runs the music business in a complete cycle with all-inclusive operations from tryouts, production, promotion, marketing and media strategic planning, artist and music content management through both digital and physical distribution with the following details: 1) RS Group employs a fully integrated business model managing all types of related business. As a company associated with a number of artists, RS Group has produced a variety of music with continuous releases onto the market. The targeted market and music genre is presented to the music committee and each music label works POǰFBDIǰBMCVNǰJOEFQFOEFOUMZǰVOUJMǰUIFǰNVTJDǰBMCVNǰJTǰųOJTIFE ǰ4VCTFRVFOUMZ ǰUIFǰNVTJDǰQSPEVDUJPOǰQSPDFTTǰ will be independently undertaken by the teams in each music label. The public relations plan and promotion Products and Services Descriptions strategy will also be created by those teams to be combined with the plans of Media Management Division and Distribution Division. Finally, the music marketing unit will lay-out the promotion strategy, conduct the public relation campaign and coordinate with the distributor to ensure the alignment of product’s quality and market’s popularity.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

2) It is RS Group’s policy to generate products in an appropriate quantity and of good quality. As a result, each album’s investment yields a satisfactory outcome.

Ç°Ç°Ç°6UJMJ[BUJPOÇ°CFOFĹłUTÇ°UISPVHIÇ°BMMÇ°NFEJBÇ°DIBOOFMTÇ°GPSÇ°CPUIÇ°'SFFÇ°57Ç°BOEÇ°4BUFMMJUFÇ°57 Ç°SBEJP Ç°QSJOUFEÇ°NFEJB Ç°JOUFSOFUÇ° NFEJBÇ°UISPVHIÇ°UIFÇ°$PNQBOZÇ°BOEÇ°JUTÇ°BGĹłMJBUFEÇ°DPNQBOZÄ´TÇ°XFCTJUFTÇ°BOEÇ°TPDJBMÇ°NFEJBÇ°DIBOOFMTÇ°UPÇ°GBDJMJUBUFÇ°FGĹłDJFODZÇ° PGÇ°UIFÇ°QVCMJDÇ°SFMBUJPOTÇ°QSPHSBNT Ç°BOEÇ°VUJMJ[FÇ°BMMÇ°NFEJBÇ°GPSÇ°NBYJNVNÇ°FGĹłDJFODZ

Ç° Ç° &GĹłDJFOUÇ° EJTUSJCVUJPOÇ° USBOTGFSTÇ° QSPEVDUTÇ° UPÇ° FOEÇ° DVTUPNFSTÇ° UIPSPVHIMZÇ° JOÇ° CPUIÇ° GPSNTÇ° PGÇ° EJHJUBMÇ° BOEÇ° QIZTJDBMÇ° contents. Set up the management and follow up system for closely monitor the distribution channels.

ǰǰǰ&GųDJFOUǰBOEǰTZTUFNBUJDǰNVTJDǰDPQZSJHIUǰNBOBHFNFOUǰDSFBUFTǰBEEFEǰSFWFOVFǰGPSǰUIFǰCVTJOFTT ǰ 6) The policy in opening opportunities to new group of artists, song writers, and new creative channel of songs in order to develop and improve the quality of RS Group’s songs to be updated and covering the target groups at all time.

Music business acquires most of its revenue from the following 3 sources: 1) Revenue from music products through Digital Content in the forms of Download, Ringtone, Ring-Back Tone, downloading of full song through various channels such as iTunes, the www.rsonlinemusic.com website, or Wireless "QQMJDBUJPOǰ1SPUPDPMǰ ǰBOEǰNVTJDǰMJTUFOJOHǰJOǰUIFǰGPSNǰPGǰPOǰMJOFǰTUSFBNJOHǰUISPVHIǰĜ%FF[FSġǰTZTUFN ǰ 2) Income from the sale of music products in forms of CD, MP3 in the forms of new and old hit singles in various formats, including VCDs and DVDs recording the concerts of Thai modern or country music artists through their new single albums, and/or their hits collection versions and so on.

Ç°3FWFOVFÇ°GSPNÇ°DPQZSJHIUÇ°DPMMFDUJPOÇ°UISPVHIÇ°34Ç°BGĹłMJBUFEÇ°DPNQBOZÇ°DBMMFEÇ°Äś5IBJÇ°$PQZSJHIUÇ°$PMMFDUJPOÇ°$P Ç°-UE ġǰPSÇ° “TCCâ€? which collects all commercially viable copyright fees.

"GĹłMJBUFEÇ°"SUJTUÇ° Ç°4JOHFS RS Group has both String Music singers and Country Music singers. Each music style has both solo singers and groups whom have different styles. RS artists and singers include:

MEDIA REVOLUTIONIST

String Music Singer

3.2.1

Four Mod

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Laolom, Jeasmine, Karamail

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New Folder

Ekk Surachate

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Neko Jump

Timethai

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White Vanilla

ZEE

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Country Music Singer

Kratae R-siam

Kung Suthiraj

Jintara Poonlarp

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Bowvee

Baitoey R-siam

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Marketing and Competition

At present, major factor that alters the consumers’ music listening behavior has been the use of internet and widely increasing usage of the smartphone. Hence, this results in more consumers listening to music through various websites and the smartphone’s applications. Consumers, then, purchase less on the physical products but UFOEǰUPǰCFǰNPSFǰJOUFSFTUFEǰJOǰNBJOMZǰQVSDIBTJOHǰUISPVHIǰUIFǰEJHJUBMǰDIBOOFMT ǰ)FODF ǰUIFǰ$PNQBOZǰFNQIBTJ[FTǰ more on contents with more varieties in order to have more channels in reaching consumers without necessarily having the physical product.

Moreover, problem on music copyright’s violation through the online system or the digital system is widely spreading due to the technology advancement. This enables consumers to easily, and rapidly reach many illegal EPXOMPBEJOHǰNVTJDǰXFCTJUFT ǰ"TǰJOTQFDUJPOǰBOEǰTVQQSFTTJPOǰBSFǰRVJUFǰEJGųDVMU ǰNBOZǰTNBMMǰNVTJDǰCVTJOFTTǰPQFSBUPSTǰ PSǰTNBMMǰNVTJDǰMBCFMĴTǰDPNQBOJFTǰIBWFǰEJGųDVMUJFTǰDPOEVDUJOHǰUIFJSǰCVTJOFTT ǰBOEǰTPNFUJNFǰIBWFǰUPǰDMPTFǰEPXOǰUIFJSǰ business. However, RS has always adjusting itself to constantly retain the music business’s revenue.

Show Business

Show Business income derives from 2 parts i.e. 1) the PSHBOJ[BUJPOÇ°PGÇ°DPODFSUTÇ°BOEÇ°FWFOUTÇ°GPSÇ°QVCMJDÇ°BOEÇ°QSJWBUFÇ° sectors and 2) artist management.

The organization of concerts and events for public and private sectors Shows and events are another business that is rapidly growing in Thailand because products, services and advertising agencies has turned to allocate more budget for below-the-line activities over the past years as a result of a rising cost of airtime for TV commercials compounded by a larger number of competitors selling products in the same category.

34Ç°JTÇ°TQFDJBMJ[FEÇ°JOÇ°PSHBOJ[JOHÇ°DPODFSUTÇ°BOEÇ°FWFOUTÇ°UPÇ°GVMĹłMMÇ°NBSLFUJOHÇ°QMBOTÇ°PGÇ°BHFODJFT Ç°GPSÇ°UIFÇ°QSPNPUJPOÇ°PGÇ° products and services, that have turned to invest in non-media or below-the-line activities in forms of shows and FWFOUT Ç°BOEÇ°BÇ°TFSJFTÇ°PGÇ°QMBOTÇ°GPSÇ°UIFÇ°PSHBOJ[BUJPOÇ°PGÇ°FOUFSUBJONFOUÇ°BDUJWJUJFTÇ°UIBUÇ°DBOÇ°PCUBJOÇ°MPOH UFSNÇ°QPTJUJWFÇ° effects on business will be presented.

Marketing and Competition 5IFÇ°CVTJOFTTÇ°PGÇ°PSHBOJ[JOHÇ°DPODFSUTÇ°BOEÇ°FWFOUTÇ°in Thailand can be divided into three main groups as follows: Ç°1SFTFOUBUJPOÇ°BOEÇ°FWFOUÇ°PSHBOJ[FSTÇ°QSPWJEJOHÇ°TFSWJDFTÇ°POÇ°UIFÇ°PSHBOJ[BUJPOÇ°PGÇ°HFOFSBMÇ°FWFOUTÇ°UPÇ°QSPNPUFÇ°QSPEVDUTÇ° and services for customers.

2. Local event promoters providing services on the PSHBOJ[BUJPOÇ°BOEÇ°NBSLFUJOHÇ°PGÇ°TUBHFÇ°QFSGPSNBODFT Ç°TIPXTÇ°BOEÇ° concerts with their own investments and/or in cooperation with other local companies.

3. International event promoters providing services on UIFÇ°PSHBOJ[BUJPOÇ°PGÇ°TIPXTÇ°BOEÇ°DPODFSUTÇ°BTÇ°XFMMÇ°BTÇ°POÇ°UIFÇ° formulation of marketing plans thereof, with their own investments and/or in cooperation with other companies, by selecting live performance products for marketing in the country.

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5IFǰDPNQFUJUJPOǰGPSǰUIFǰPSHBOJ[BUJPOǰPGǰDPODFSUTǰBOEǰFWFOUTǰJOǰ5IBJMBOEǰJTǰSBUIFSǰIJHIǰCFDBVTFǰUIFSFǰJTǰBǰMBSHFǰ number of enterprises at all scales, whether small, medium or large. However, on the plus side, this business has a high prospect because most marketing plans for product promotion set aside more budgets every year for below-the-line activities. #FJOHǰBǰMBSHF TDBMFǰFOUFSUBJONFOUǰDPNQBOZǰHJWFTǰ34ǰBOǰBEWBOUBHFǰPWFSǰPUIFSTǰJOǰUIFǰPSHBOJ[BUJPOǰPGǰDPODFSUTǰ and events, that is because we have lots of artists under our care and we run integrated media business of all kinds TVDIǰBTǰ57 ǰSBEJPǰBOEǰPUIFSǰNFEJBǰDIBOOFM ǰǰ5IFTFǰRVBMJUJFTǰDBOǰHJWFǰBTTVSBODFǰUIBUǰDPODFSUTǰBOEǰFWFOUTǰPSHBOJ[FEǰ CZǰUIFǰ$PNQBOZǰDBOǰGVMųMMǰDVTUPNFSǰOFFET

Artist Management RS’s long-time engagement in the business of integrated entertainment results in loads of artists and actors/ actresses under the care of the Company. These personnel are valuable assets who create value for the Company BOEǰCFǰBǰSFQSFTFOUBUJWFǰPGǰUIFǰ$PNQBOZǰJOǰKPJOJOHǰBDUJWJUJFTǰXJUIǰPUIFSǰPSHBOJ[BUJPOT ǰBOEǰUBLJOHǰKPCTǰUPǰBQQFBSǰJOǰ public events after their albums are released and promoted.

Artist management is an arrangement of all affairs to add value to artists, create jobs to boost income for BSUJTUTÇ°JOÇ°BEEJUJPOÇ°UPÇ°UIFÇ°MBVODIÇ°PGÇ°NVTJDÇ°XPSLÇ°PSÇ°QFSGPSNBODFTÇ°BTÇ°VTVBMÇ°J F Ç°PSHBOJ[BUJPOÇ°PGÇ°DPODFSUTÇ°JOTJEFÇ°BOEÇ° outside the country, appearance in public events for singing, fashion show performance, interview, sports playing, and so on, stage show performance in a fenced area with the sale of admission tickets, made-to-order production in accordance with individual customer requirements, and presentation show.

Marketing and Competition

5IFǰ $PNQBOZǰ FNQMPZTǰ CPUIǰ NBTTǰ DVTUPNJ[BUJPOǰ TUSBUFHJFTǰ BOEǰ $VTUPNJ[BUJPOǰ 4USBUFHZǰ BTǰ Bǰ NBKPSǰ QPMJDZǰ EFQFOEJOHǰPOǰFBDIǰDBUFHPSZǰPGǰQSPEVDUǰPSǰTFSWJDF ǰCZǰFNQIBTJ[JOHǰUIFǰJNQPSUBODFǰPGǰEJSFDUǰDVTUPNFSTǰBTǰUIFǰNBJOǰ focus but never forgets to take care of customers in the group of advertising agencies. With regard to the technique of work presentation, the Company aims to make customers aware that any work presented by the Company is a NBSLFUJOHǰUPPMǰUPǰIFMQǰJOEJWJEVBMǰDVTUPNFSTǰBDIJFWFǰTVDDFTTǰJOǰGVMųMMJOHǰUIFJSǰQSF EFUFSNJOFEǰNBSLFUJOHǰPCKFDUJWFTǰ by building on the principle of entertainment marketing to approach consumers.

The Company reformats the management of performing artists by allowing artists to take jobs by themselves BUǰUIFǰTUBOEBSEǰSFNVOFSBUJPOǰSBUFǰųYFEǰCZǰUIFǰ$PNQBOZǰBOEǰUIPTFǰBSUJTUTǰIBWFǰUPǰEFEVDUǰBOEǰTIBSFǰBǰQBSUǰPGǰ SFWFOVFT ǰBUǰBǰTQFDJųFEǰSBUF ǰUPǰUIFǰ$PNQBOZ ǰǰǰ5IJTǰOFXǰGPSNBUǰIFMQTǰJODSFBTFǰKPCTǰBOEǰCPPTUTǰJODPNFǰGPSǰBSUJTUTǰ BOEǰDPOUSJCVUFTǰUPǰHSFBUFSǰŴFYJCJMJUZǰPGǰBSUJTUǰNBOBHFNFOU

Media Business

RS media business consists of 2 major media i.e. TV, and Radio

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

TV Media Business

34Ç°1VCMJDÇ°$PNQBOZÇ°-JNJUFEÇ°PQFSBUFTÇ° Ç°TBUFMMJUFÇ°UFMFWJTJPOÇ°DIBOOFMTÇ°J F Ç°4BCBJEFFÇ°57 Ç°:06Ç°$IBOOFM Ç°$IBOOFMÇ° Ç° Channel 2 Star Max, and Sun Channel La Liga which have different concepts and target groups as follow:

Channel 8 is operated under the concept of Free TV with 24 hours varieties which presents its works to serve demands for all age and gender groups of audiences by producing and creating all forms of entertainment varieties.

The laid out concept is similar to other free television channels which consists of variety of programs with its TUSFOHUIÇ°EVSJOHÇ°UIFÇ°TVQFSÇ°QSJNFÇ°UJNFÇ°QFSJPEÇ°GPSÇ°OFXÇ°UFMFWJTJPOÇ°ESBNBÇ°XJUIÇ°JUTÇ°ĹłSTUÇ°SVO Ç°*OÇ° Ç°$IBOOFMÇ° Ç°IBTÇ° Ç° OFXÇ°ĹłSTUÇ°SVOÇ°ESBNBTÇ°J F Ç°Äś,BÇ°,BQÇ°)POHġ Ç°Äś/BOHÇ°.BSOġ Ç°Äś,IBPÇ°/PLÇ°/Bġ Ç°Äś7JWBÇ°1BÇ°$IBÇ°5FBLġǰBOEÇ°Äś1PPÇ°$IBOBÇ°4JCÇ° Tisâ€?. Moreover, there are many programs in various varieties such as the news program “ Kuikhao Chong 8â€?, and Kuikhao Yarmyenâ€?, the entertainment programs “Bunthoeng 108â€?, the talk-show program “Pakpongâ€?, the reality show program “Saengsawan Pichitfunâ€?, the comedy, game-show and various concerts program including many GPSFJHOÇ°BOEÇ°EPNFTUJDÇ°ĹłMNTÇ°UIBUÇ°BSFÇ°CFJOHÇ°DJSDVMBUFEÇ°JOÇ° Ç°IPVSÇ°CSPBEDBTUJOH Ç°/FXÇ°ESBNBTÇ°BOEÇ°UIFTFÇ°QSPHSBNTÇ° have generated interesting trends among audiences and advertising agencies within a very short time which always SFĹ´FDUTÇ°$IBOOFMÇ° Ä´TÇ°SBUJOHÇ°BTÇ°MFBEFSÇ°JOÇ°UIFÇ°FOUFSUBJONFOUÇ°WBSJFUZÇ°HSPVQÇ°GSPNÇ°/JFMTFOÇ°.FEJBÇ°3FTFBSDI

Sabaidee TV channel focuses on the target group with appreciation of Thai songs not only limited to country music but also included songs for life, hit songs in the past, rare-to-hear old songs, string music, including underground music market where a music maker is given an opportunity to promote their work, under the slogan “various thai style music happy watching for the whole family. The strengths of Sabaidee TV channel of which its contents are QSPEVDFEǰBOEǰNBOBHFEǰVOEFSǰ3ǰ4JBNǰSFDPSEǰMBCFMǰJTǰDBQJUBMJ[FEǰPOǰUPǰQSFTFOUǰBǰXJEFǰWBSJFUZǰPGǰQSPHSBNT ǰCPUIǰJOǰ EFQUIǰBOEǰJOǰXJEUI ǰCZǰESBXJOHǰBOEǰVUJMJ[JOHǰUIFǰGVMMǰQPUFOUJBMǰPGǰBSUJTUTǰJOǰPVSǰDBSFǰBMPOHǰXJUIǰUIFǰTFMFDUJPOǰPGǰBOǰ emcee with unique identity, well remembered and liked by people of many different groups. All of the aforesaid characteristics make Sabaidee TV a channel of pleasure people can watch all day where people can communicate all the time via SMS which will be shown on TV screen.

:06ǰ$IBOOFM ǰUIFǰDIBOOFMǰXJUIǰQSPHSBNǰDPODFQUǰPGǰĜ5FMFWJTJPOǰGPSǰ.VTJDǰ-PWFSTġǰXIJDIǰDPOTJTUTǰPGǰWBSJPVTǰ programs such as live programs of variety favors and variety programs that are interesting to follow. This is to serve audiences and listeners of all ages and groups who love listening to music. Music videos or artist pictures in concerts are to be presented in various arrangements, and variety of entertainment programs to be shown in various formats. Creative materials are inserted to establish popularity trend to target group, and this is also another channel in recruiting new artists as well.

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Ç° $IBOOFMÇ° Ç°4UBSÇ°.BYÇ°JTÇ°UIFÇ°ĹłSTUÇ°DPNQMFUFÇ°QIFOPNFOBMÇ°TUBSÇ°WBSJFUZÇ°JOÇ°5IBJMBOE Ç°5IJTÇ°JTÇ°UIFÇ°POMZÇ°TUBUJPOÇ°UIBUÇ° gathers top variety shows from artists, actors, celebrities, and leading local and foreign artists in full. Additionally, popular contents with top quality have been arranged to be broadcasted 24 hours in order to serve the target group.

Sun Channel La Liga is a new channel under the “Extreme Entertainment Variety� concept that consists of sport, news, information, and entertainment programs. Main target group consists of people in their early working MJWFT ǰBOEǰUIFǰBEVMUǰHSPVQǰXIPǰMPWFǰTQPSU ǰ5IFǰOFXǰDIBOOFMǰTUJMMǰFNQIBTJ[FTǰPOǰMJGFǰCSPBEDBTUJOHǰPGǰUIFǰ-Bǰ-JHBǰ Spanish football in order to serve the audience group who love football which is the strong point of RS in this sector, and to expand for more coverage in this audience base group as well. The “Sun Channel La Liga� contains variety of programs such as “Inside La Liga�, Sun Sport�, La Liga World�, and “La Liga Show programs, etc.

Moreover, add more variety program, “Arthit Lawan Tunkhao�, by using the professional news announcers such as Chaiwat Anutrakul, Akarapon Thongtaradol, Sasiwan Lertwiriyaprapa, and including many variety programs in order to cover more audiences.

Marketing and Competition Advertising on satellite TV spends much less money than on free TV; however, it can reach more target groups in various regions; especially, it provides an alternative to small and medium enterprises with small advertising budgets. The Company is capable of formulating a plan for the use of advertising space to meet customer requirements. In 2013, the advertising market shows an increasing growth of 10% comparing to 2012, with market value of Baht 129,880 million while the television media still registers the highest advertising value at 57% of total market value (source: Kasikorn Research Center). Additionally, in 2013, the penetration level of satellite television coverage has reached 64% of the 22 Million households with increasing trend in future, thus, creating more opportunity for expansion in future. Currently, there are many customers expressing interest in buying airtime both directly and through advertising agencies.

The Company sees that the diversity of programs via cable and satellite TV channels will make them become alternative media for products and services required to communicate message/information to customers in JOEJWJEVBMÇ°OJDIFÇ°NBSLFUTÇ°UPÇ°NFFUÇ°UIFJSÇ°TQFDJĹłDÇ°EFNBOET Ç°MJGFTUZMFTÇ°PSÇ°QSFGFSFODFTÇ°PSÇ°TBUJTGZÇ°WJFXFSTÇ°JOÇ°FBDIÇ°TQFDJĹłDÇ° region.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Marketing 1) Product Branding and Program Positioning The Company clearly set the market position of the business in each type of program. The communication of BOÇ°JNBHFÇ°PGÇ°UIFÇ°$PNQBOZÇ°BOEÇ°UIFÇ°EFTJHOÇ°PGÇ°QSPHSBNTÇ°BSFÇ°BJNFEÇ°BUÇ°SFTQPOEJOHÇ°UPÇ°TQFDJĹłDÇ°OFFETÇ°PGÇ°JOEJWJEVBMÇ° target groups, by taking into consideration the pattern of behaviors of viewers in each group and hot trends which correspond to the strategies of RS Group of companies possessing strength and high competitiveness in the market.

Ç°$BQJUBMJ[BUJPOÇ°POÇ°UIFÇ°DPNQFUJUJWFÇ°TUSFOHUIÇ°PGÇ°34Ç°(SPVQÇ°BTÇ°BÇ°NBKPSÇ°FMFNFOUÇ°PGÇ°QSPEVDUJPOÇ°UPÇ°PCUBJOÇ°BÇ°UPQ RVBMJUZÇ° program *OÇ° BEEJUJPOÇ° UPÇ° DMFBSMZÇ° EFUFSNJOFÇ° UBSHFUÇ° WJFXFST Ç° UIFÇ° $PNQBOZÇ° DBQJUBMJ[FTÇ° POÇ° UIFÇ° DPNQFUJUJWFÇ° TUSFOHUIÇ° PGÇ° PVSÇ° PSHBOJ[BUJPO Ç°JOÇ°UIFÇ°UFFOÇ°NBSLFUÇ°PGÇ°MBSHFÇ°TDBMFÇ°BOEÇ°IJHIÇ°QVSDIBTJOHÇ°QPXFS Ç°JOÇ°UIFÇ°EFTJHOÇ°BOEÇ°QSPEVDUJPOÇ°PGÇ°XPSLÇ° to obtain top-quality programs, using talented artists/performers/singers/teen emcees in our care, our music and other contents as a major element to create work, upon combined with the strength of our crew members who are highly skilled and experienced in the production of TV programs and videos, top-quality work is produced and great feedback is achieved.

3) Formulation of sale patterns to create maximum value for customers The design of sale patterns of advertising media to respond to the needs of and create maximum value for customers in a package deal i.e. the sale of loose spot airtime in tandem with marketing activities to repeat and create brand awareness among customers by placing emphasis on the creation of marketing activities in a CSR DPODFQUÇ° $PSQPSBUFÇ° 4PDJBMÇ° 3FTQPOTJCJMJUZ Ç° UPÇ° FODPVSBHFÇ° DPOTDJFODFÇ° BOEÇ° QVCMJDJ[FÇ° LOPXMFEHFÇ° BCPVUÇ° UIFÇ° TPDJBMÇ° responsibility towards consumers, presented in a way that blends into with the program content and is able to communicate the properties of the product in an effective manner to make the spending of advertising budget of customers most value for money.

4) Creation of overall quality to gain customer recognition The Company focuses on the creation of overall quality in every work unit to gain customer trust and recognition, not only limited to production quality for customer satisfaction but also included before and after sale services such as the response to customer needs in a prompt and proper manner, listening to their problems and coming up with solutions for them.

5) Program development to meet the tastes of target viewers An analysis of target viewer requirements is conducted on a regular basis from which the results are used to develop production style and technique in line with the requirements of target viewers and customers to steadily boost program ratings and sales.

6) Administrative and cost management "Ç°TUSVDUVSFÇ°IBTÇ°CFFOÇ°MBJEÇ°UPÇ°HJWFÇ°Ĺ´FYJCJMJUZÇ°JOÇ°BENJOJTUSBUJWFÇ°BOEÇ°DPTUÇ°NBOBHFNFOUÇ°CZÇ°VTJOHÇ°PVSÇ°FNQMPZFFTÇ°UPÇ° produce work of some parts and hiring outsiders to produce work of other parts (outsourcing).

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Competition

As consumer behaviors in Thailand have changed, many of them begin to seek distinctive information that NFFUTǰUIFJSǰQSFGFSFODFT ǰCVUǰGSFFǰ57ǰNFEJBǰBWBJMBCMFǰOPXǰDBOOPUǰTVQQMZǰTVDIǰTQFDJųDǰJOGPSNBUJPOǰBOEǰDPOUFOUTǰUPǰ serve individual tastes and needs. Recently, many entrepreneurs have been more engaged in satellite TV business in diverse forms including music, news update, infotainment and even product selling channel, thus making satellite TV the business with high-growth potential; additionally, the development of technology helps bring down the cost and the breakeven point can be reached in a few years’ time. Like others, the Company has the policy to expand services or increase bandwidth/channels in response to today’s consumer preferences and lifestyles.

The provision of satellite TV services is a hot new trend evolving worldwide because of not-so-high investment when compared with free TV which requires an intensive capital of several billion baht, and satellite TV will have a MBSHFSÇ°OVNCFSÇ°PGÇ°TQFDJĹłDÇ°WJFXFSTÇ°UIBOÇ°GSFFÇ°57Ç°XIJDIÇ°IBTÇ°BÇ°XJEFSÇ°SBOHFÇ°PGÇ°WJFXFST Ç°Ç°Ç°$VSSFOUMZ Ç°GSFFÇ°57Ç°DBOÇ°HFOFSBUFÇ° income from the sale of advertising airtime in an average amount of 40,000 million baht; so, if a satellite TV station is operated at the full scale, its advertising airtime sales may be as high as 100,000 million baht for both inbound and outbound.

Two marketing communication models have been so far adopted by suppliers in Thailand i.e. 1) a type of advertising through media or above-the-line activities and 2) a type of advertising through direct means of communication or below-the-line activities. In the wake of rising advertising costs compounded by various rules, regulations, prohibitions banning the advertisement of some products on free TV, lots of record labels shift their focus to direct marketing activities towards the target group, thus heightening the percentage of spending in belowthe-line activities which better reach the target group while at the same time generate sales. However, upon the time satellite TV plays a greater role, the percentage of above-the-line spending will regain popularity due to its much cheaper cost; moreover, the development of technology will enable product owners to shoot advertising TQPUTÇ°UPXBSETÇ°FBDIÇ°TQFDJĹłDÇ°[POFÇ°BTÇ°SFRVJSFEÇ°UPÇ°CPPTUÇ°TBMFTÇ°JOÇ°BOZÇ°BSFBÇ°UIFZÇ°BSFÇ°TUJMMÇ°UIFÇ°VOEFSEPHT Ç°BOEÇ°UIJTÇ°XJMMÇ° intensify battle lines in the provinces because local marketing activities and the direct shooting of advertising spots BU UPÇ°BÇ°TQFDJĹłDBMMZÇ°EFĹłOFEÇ°[POFÇ°DBOÇ°CFÇ°PSHBOJ[FEÇ°PSÇ°NBEFÇ°FBTJFS Even though, in 2013, there are many new players coming into the satellite television industry which causes high competition for the existing advertising budget, however, the industry is still large enough for more growth. In the past year, RS still holds on as the number 1 leader, and as the company that provides service platform that produces contents directly to serve the market requirements, it has good opportunity in building the added value for products and gains high competitive advantage as well.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Procurement of Products and Services The Company is in alliance with several leading satellite service providers like PSI, DTV and many more to come JOÇ°UIFÇ°GVUVSF Ç°XJUIÇ°UIFÇ°BJNÇ°PGÇ°FYQBOEJOHÇ°DIBOOFMTÇ°UPÇ°SFBDIÇ°UIFÇ°UBSHFUÇ°HSPVQT Ç°CZÇ°TUSJWJOHÇ°UPÇ°NJOJNJ[FÇ°DPOTUSBJOUTÇ°POÇ° an access to bandwidth as well as having a policy to open more channels to satisfy the requirements of consumers JOÇ°UIFÇ°HMPCBMJ[BUJPOÇ°BHF Ç°Ç°Ç°Ç°Ç°5IFSFÇ°JTÇ°BÇ°NFUJDVMPVTÇ°TFMFDUJPOÇ°PGÇ°QFSTPOOFM Ç°CPUIÇ°PO TUBHFÇ°BOEÇ°CBDL TUBHF Ç°XIPÇ° BSFÇ°UBMFOUFE Ç°FYQFSJFODFEÇ°BOEÇ°SFDPHOJ[FEÇ°CZÇ°UIFÇ°UBSHFUÇ°HSPVQT Ç°Ç°1FSTPOOFMÇ°PO TUBHFÇ°XJMMÇ°CF Ç°PGÇ°DPVSTF Ç°BSUJTUTÇ°BOEÇ° performers in RS care; however, we cast independent artists and performers as well. As regards concept creation and production control, they are wholly managed by our in-house teams, while some parts of production are managed by our in-house teams and the other parts are managed in an outsourcing manner.

Radio Business

34Ç°PQFSBUFTÇ°UIFÇ°' . Ç° Ç°.)[ Ç°GSFRVFODZÇ°VOEFSÇ°UIFÇ°CSBOEÇ°OBNFÇ°Äś$PPMÇ°'BISFOIFJUÇ° ġ Ç°UIFÇ°' . Ç° Ç°Äś$PPMÇ°$FMDJVTÇ° 91.5â€?, and “F.M. 88.5 Sabaidee Radioâ€? with the following details:

Radio Station

' . Ç° Ç°.)[ COOL Fahrenheit 93

' . Ç° Ç°.)[ COOL Celcius 91.5

' . Ç° Ç°.)[ Sabaidee Radio

Concessioner

Navy Radio Station

Army Radio Station

Navy Radio Station

On Air Date and Time

24 hours

24 hours

24 hours

Signal Coverage

Bangkok and vicinity

Bangkok and vicinity

Bangkok and vicinity

Program Concept

Ç°.JOVUFTÇ°.VTJDÇ°'SFF[FÇ° your Mind

Contemp Revo international Various Thai music Music Station For the family

Target Audience

Students and working people aged 20 - 34 years old

Working male & female aged Students and working 20-34 years old who prefer people aged 15 - 45 international music years old

The Sky High Network Co., Ltd has changed to another new name as COOLISM Co., Ltd., and having 2 radio stations under its control i.e., COOL Fahrenheit 93, and COOL Celsius 91.5. $00-ǰ'BISFOIFJUǰ ǰQSPDFFETǰBTǰQFSǰUIFǰ$PNQBOZĴTǰQPMJDZǰJOǰDPOEVDUJOHǰUIFǰGVMMZǰDPNNFSDJBMJ[FEǰCVTJOFTTǰPGǰ SBEJPǰPQFSBUJPO ǰ&NQIBTJ[FǰJTǰTUJMMǰPOǰNBJOUBJOJOHǰJUTǰPSJHJOBMǰQPQVMBSJUZ ǰBOEǰJODSFBTJOHǰJUTǰBVEJFODFǰCBTF ǰ"UǰQSFTFOU ǰ it still maintains clear audience base, and popularity, and manages to receive the most popularity vote in each of UIFǰBVEJFODFǰCBTFǰGSPNǰTVSWFZJOHǰEBUBǰPGǰ/JFMTFOǰ.FEJBǰ3FTFBSDI ǰ5IJT ǰSFTVMUTǰJOǰDPOųEFODFǰJOǰVTJOHǰNFEJBǰGPSǰ advertising purpose from the Company’s clients of advertising agencies, and products; owners.

MEDIA REVOLUTIONIST

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Radio Station Theme Radio Station: F.M. 93.0 MHz. COOL Fahrenheit 93 Mon - Fri

COOLJ

06.00 - 09.00

Patarawut

09.00 12.30 15.00 19.00 20.30 23.00

Pipat Warongporn Porworn Theerapat Kunda Rungrong

-

12.00 15.00 19.00 19.30 23.00 02.00

Sat - Sun

02.00 - 06.00

Singhaseni

Wittayapunyanon Wichaidith Kijcharoenkarnkun Chaijunyar Srithammanupathum Vannaroth

Sweep music

$PPMǰ'BISFOIFJUǰ ǰPGGFSTǰFBTZ MJTUFOJOHǰ5IBJǰTPOHTǰXIJDIǰBSFǰGBWPSFEǰCZǰUIFJSǰBVEJFODF ǰ*UǰJTǰUIFǰųSTUǰSBEJPǰ station, hosted by accepted professional PJs, that allows the audience to listen to voted songs for 50 minutes continuously. Activities that respond to the audience’s lifestyles and challenge the working group listeners are also part of the program, which enhances Cool Fahrenheit 93 to become number one radio for working people in a short period and by mutual consent according to Neilsen Media Research polls.

For these reasons, Cool Fahrenheit 93 has proved to be a popular radio station according to the Neilsen Media Research popularity poll, 10 years frequencies from 2002 to present (data as of December 2013). It has been ranked as the top station in the Easy Listening category for working group aged between 20 - 34 years old. $00-ǰ$FMTJVTǰ ǰGVODUJPOTǰVOEFSǰUIFǰ$PNQBOZĴTǰQPMJDZǰCZǰPQFSBUJOHǰBTǰGVMMZǰDPNNFSDJBMJ[FEǰSBEJPǰTUBUJPOǰ UIBUǰFNQIBTJ[FTǰPOǰJUTǰQPQVMBSJUZ ǰBOEǰFYQBOETǰUPǰXJEFSǰUBSHFUǰMJTUFOFSTǰXJUIǰNPSFǰMJTUFOJOHǰUJNF ǰ.BOZǰNBSLFUJOHǰ promotion activities are used to directly reach listeners’ lifestyle, and thus, at present, the COOL Celsius 91.5 receives more and more popularity. This resulting in clients from advertising agencies and products’ owners are DPOųEFOUǰJOǰDPOUJOVPVTMZǰVTJOHǰUIFǰ$PNQBOZǰUPǰBEWFSUJTFǰUIFJSǰQSPEVDUT Radio Station Theme Radio Station: F.M. 91.5 MHz. COOL Celsius 91.5 Mon - Fri 07.00 - 10.00 10.00 - 13.00 13.00 - 16.00 16.00 - 19.00 20.30 - 23.00 (Fri. - Wed.) 20.30 - 23.00 (Thu. - Fri.) 23.00 - 02.00 Sat - Sun 02.00 - 06.00

COOLJ Atiruj Prakitsuwan Leela Soonthornvinej Narkwan Rayananon CJ Charoenchusana Ploypailin Pamornmontri Nuttawuj Janemana Patrick Chainarm Sweep Music

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

COOL Celsius 91.5 represents the radio program on international songs and variety programs. COOL Celsius 91.5 IBTÇ°TUBSUFEÇ°JUTÇ°CSPBEDBTUJOHÇ°JOÇ°.BSDIÇ° Ç° Ç°BOEÇ°IBTÇ°CFDPNFÇ°UIFÇ°ĹłSTUÇ°5IBJÇ°SBEJPÇ°TUBUJPOÇ°UIBUÇ°JOUSPEVDFTÇ°UIFÇ°GPSFJHOÇ° copyright contents. COOL Celsius 91.5 will use the strategy called “Killer Contentâ€? by bringing in the program on the report of American Top 40 using the famous host “Ryan Secrestâ€? and to be broadcasted life with other 150 stations worldwide. Other content is the “Call me COOLISTAâ€? that shows lifestyle contents on food, journey and including various fashions which answers all listeners’ lifestyle.

RSiam operates this single radio frequency as the main business in promoting RS contents together with its radio NFEJBǰPQFSBUJPOǰCZǰCSPBEDBTUJOHǰUISPVHIǰ' . ǰ ǰ.)[ ǰGSFRVFODZ ǰ3FWFOVFTǰXJMMǰCFǰGSPNǰTBMFTǰPOǰBEWFSUJTJOHǰ time and event productions. Sabaidee Radio operates its radio business in accordance with the Company’s policy with its main business in promoting contents of the Company together with its radio media operation. Its main targets are to protect its popularity, expand for a wider customer base, and increase the listening time. At present, Sabaidee Radio has won the audiences’ hearts, and has been listed by the AGB Nielsen Media Research, and IBTǰSFTVMUFEǰJOǰDPOUJOVPVTǰDPOųEFODFǰJOǰVTJOHǰUIFǰ$PNQBOZĴTǰNFEJBǰDIBOOFMǰBNPOHǰBEWFSUJTJOHǰBHFODJFTǰBOEǰ products’ owners alike.

Radio Station Theme F.M. 88.5 MHz Sabaidee Radio Mon - Fri 05.00 - 07.00 08.00 - 11.00 11.00 - 14.00 14.00 - 17.00 17.00 - 20.30 20.00 - 23.00 23.00 - 01.00 01.00 - 03.00 03.00 - 05.00

DJ Naynay Bughar Saree Golfy Nuttama Noom Chaiyoo Bugnar Saree Tum + Kwang Jenny Paisarn Kaew-wiset Touch

Sat. – Sun. 05.00 - 07.00 09.00 - 11.00 11.00 - 14.00 14.00 - 17.00 17.00 - 20.30 20.00 - 23.00 23.00 - 01.00 02.00 - 05.00

DJ Oo Puntawee Nat Avita Joe Chalermsak / Noom Chaiyoo Tonk / Oui Ekapon Chaiwat Ping Fruitty Ç°/POHÇ°-PPLÇ° Ç°/V[[B Olive

MEDIA REVOLUTIONIST

37

Sabaidee Radio F.M. 88.5 presents with variety of Thai music i.e. country music, country for life music, country music with southern and northern accent, north-eastern music style, Mor-Lum, oldies string music, and including country pop music with the aim for easy listening, and popular to all members of the family. The radio frequency is widely and overwhelmingly accepted from audiences as its programs create good humor atmosphere among listeners similar to its name as “Sabaidee Radio, the new alternative radio frequency that creates smile and wellbeing familiesâ€?. All songs have been selected from chart listed song hits with top download volume, and including decent materials to create good humor and well- being to families at all times. There are also professional teams of DJs who are well accepted from audiences in which some of them are very familiar with Sabaidee Radio fan club. Moreover, activity arrangements to serve life styles and friendships with the existing fan club members and expansion of the new fan club base have been created continuously. The resulting achievement enables Sabaidee radio F.M. 88.5 to receive acceptance and love, and constant loyalty from listeners Hence, from research of AGB Nielsen Media Research, Sabaidee Radio F.M. 88.5 receives the most popular radio TUBUJPO Ç°BOEÇ°BMTPÇ°SFDFJWFTÇ°UPQÇ°QPQVMBSÇ°WPUFÇ°TJODFÇ°JUTÇ°PQFOJOHÇ°JOÇ°+VMZÇ° Ç°VOUJMÇ°QSFTFOUÇ°JOÇ°UIFÇ°TUVEFOUÇ°BOEÇ°PGĹłDFÇ° worker groups’ category (15 - 45 years).

Marketing and Competition

At present, even though behavior of listeners through radio stations has been decreasing, nevertheless, the number of music listeners on-line through websites and mobile applications has increased. The COOL Fahrenheit 93 and COOL Celsius 91.5 radio stations have registered gradually increasing listeners as the number of listeners through websites and mobile applications through both stations have registered at more than 1,500,000 and 300,000 listeners respectively.

Marketing Strategies

1. Value for money Strategy *Oǰ ǰUIFǰ$PNQBOZǰIBTǰVTFEǰWBMVFǰGPSǰNPOFZǰTUSBUFHJFTǰUPǰDSFBUFǰBOǰPQUJNVNǰCFOFųUǰUIBUǰTVJUTǰUIFJSǰ DVTUPNFSĴTǰBEWFSUJTJOHǰCVEHFUǰCZǰTFMMJOHǰQBDLBHFT ǰFYQBOEJOHǰUIFǰMPPTF TQPUǰUJNFǰBOEǰPSHBOJ[JOHǰĜBDUJWJUJFTǰJOǰ programs� and marketing events. These have added to the value of sales promotions and investment.

2. Promotion Strategy Surrounded by the intense competition in the radio business that necessitates the differentiation of programs for value addition to the radio frequencies, customers and products that are engaged in the promotion activities, the sale of advertisement time no longer adequately corresponded to the demand of customers and the branding PGǰ UIFǰ DPNQBOZǰ BOEǰ SBEJPǰ GSFRVFODZ ǰ "DDPSEJOHMZ ǰ UIFǰ $PNQBOZǰ IBTǰ BEKVTUFEǰ JUTǰ QPMJDZǰ CZǰ FNQIBTJ[JOHǰ UIFǰ promotion activities by forging the business synergy with other kinds of alliance by joining as media partner for activities or concerts with the same target customers’ group. *OǰBMMǰPGǰUIFTFǰQSPNPUJPOǰBDUJWJUJFT ǰUIFǰ$PNQBOZǰFNQIBTJ[FEǰUIFǰRVBMJUZǰBDUJWJUJFTǰUIBUǰXJMMǰCPUIǰFOMJHIUFOǰ BOEǰFOUFSUBJOǰUIFǰQBSUJDJQBOUTǰBOEǰTJNVMUBOFPVTMZǰDPSSFTQPOEǰUPǰUIFǰNBSLFUJOHǰQPMJDJFTǰPGǰDVTUPNFSTǰJOǰBOǰFGųDJFOUǰ manner. This proves to be another channel of revenue-generating of the Company by arranging the promotion activities for customers.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

*OǰBEEJUJPO ǰUIFǰ$PNQBOZǰVTFEǰUIFǰQPUFOUJBMǰPGǰJUTǰ"EWFSUJTJOHǰBOEǰ13ǰ%FQBSUNFOUTǰUPǰQVCMJDJ[FǰUIFǰBDUJWJUJFTǰ of its radio stations. The clients’ activities were widely accepted in the form of PR news and advertisements on TV QSPHSBNT ǰJOǰNBHB[JOFT ǰBOEǰPOǰPVUEPPSǰBOEǰNPCJMFǰNFEJB ǰ 3. Advertising Planning Service With its long experience in the radio business, the company has a thorough understanding of all aspects of the business. Its staff can advise clients how to plan the best quality media management. They can also help them choose the most appropriate airtime or advertising package to suit their purpose and reach the audience.

The Company has planned advertising campaigns with special activities to meet the needs of the customers and the limitations on each product type, especially alcohol-mixed beverages or other products that need an access to the particular market target. Based on the policies of its business partners, the Company and the program sponsors have planned advertising strategies that will keep Sponsors’ interested and return the greatest CFOFųUǰUPǰUIFNǰBTǰUIFZǰVTFǰUIFǰ$PNQBOZĴTǰNFEJBǰTFSWJDF ǰ

Radio Station Operators

Radio station operators that broadcast mainly the Thai, international, and country music, and having similar target audiences are shown in the following table: Radio Station

Teenagers 10 - 18 years

Thai Music Stations F.M. 89.0 Chill FM F.M.93.0 COOL 93 F.M. 103.5 FM ONE F.M.106.5 Green Wave International Music Stations F.M. 102.5 Get FM F.M. 91.5 COOL 91.5 ' . Ç°&B[ZÇ°'.

F.M. 107.0 Met 107 Country Music Station F.M. 88.5 Sabaidee Radio F.M.95 Looktung Mahanakorn F.M. 90 Sap Looktung F.M. 94.5 Kluen sanuk Sukniyom

Students 15 - 25 years

COOLISM

Working Group 18 - 35 years

Adult 25 - 45 years

Competitor COOLISM Competitor Competitor

COOLISM Competitor Competitor

Competitor

Competitor Competitor

Competitor COOLISM Competitor Competitor

R Siam

R Siam Competitor Competitor Competitor

R Siam Competitor Competitor Competitor

Competitor Competitor

COOLISM

R Siam Competitor Competitor Competitor

MEDIA REVOLUTIONIST

39

There is strong competition in the radio business because of limits on advertising expenditure. Clients prefer to buy advertising airtime on radio stations with good ratings. Consideration is given to pricing strategies that will allow the client to buy more airtime or choose a variety of advertising styles. This will depend on the sales strategy of each company; those who can show that they are providing the best value-added service will stay ahead of the competition.

Procurement of Product or Service DJ and Production and Creative Personnel The Company has successfully brought about the innovation to the radio circle by employing the new marketing strategy, “PJ MARKETINGâ€? after the accomplishments in the program production of 93 Cool Fahrenheit BOEÇ°PUIFSÇ°BGĹłMJBUFEÇ°SBEJPÇ°GSFRVFODJFTÇ°CZÇ°NPWJOHÇ°UIFÇ°%+Ç°FSBÇ°JOUPÇ°UIFÇ°1+Ç° 1SPHSBNÇ°+PDLFZ Ç°POF Ç°&BDIÇ°1+Ç°JTÇ°SFRVJSFEÇ°UPÇ° FOIBODFÇ°POFÄ´TÇ°PXOÇ°QPUFOUJBMÇ°CZÇ°QPTTFTTJOHÇ°UIFÇ°CBTJDÇ°NBSLFUJOHÇ°LOPXMFEHFÇ°BOEÇ°PQUJNBMÇ°UFDIOPMPHZÇ°VUJMJ[BUJPOÇ°JOÇ° particular. PJs are the key factor contributing to the reputation of the radio station as they are responsible people who have a good understanding of the music, and the ability to communicate with the listeners. With training, they can improve their knowledge of technology in order to be able to handle state-of-the-art equipment and software.

They host their programs in a style that meets the taste of the target listener, and may also work externally as program hosts for sales promotion activities.

Broadcasting System The Company uses a computer system for automatic broadcasting control which is the technology of international standards by which its software is regularly updated to keep up with the ever-changing trends and achieve top broadcasting quality.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

05

Risk Factors

MEDIA REVOLUTIONIST

41

Risk Factors RS Group has evaluated the risks that might affect its Companies and subsidiaries that may result in impacts toward its business operations as follows:

Risks from copyright violation

From the past up to the present day, music industry suffers from the copyright violation impact in the form of physical products (CD, VCD, DVD), and in the digital form which results from the widely spreading distribution of various copyright violation products.

Technology advancement and popularity of websites also assist in downloading of music or various free contents. Moreover, consumers’ perception is still impassive on campaign for the copyright product, and perceives that copyright violation through music download is quite an ordinary matter. Thus, revenues from the product distribution and music downloading EPǰOPUǰSFBMMZǰSFŴFDUǰUIFǰSFBMǰDPOTVNQUJPOǰųHVSF ǰ However, in the past, all parties involved, in the Government and private sectors, including entrepreneurs, music composers, and artists have joined in to collaborate in encouraging consumers to purchase copyright products and refrain from supporting all type of pirate products.

5IFǰ $PNQBOZǰ IBTǰ SFBMJ[FEǰ UIFǰ JNQPSUBODFǰ PGǰ this problem, and has adjusted its strategies and implementations to stimulate the recovery of its sales ųHVSF ǰ 5IFTFǰ BSFǰ JOǰ UIFǰ GPSNTǰ PGǰ BEKVTUJOHǰ QSPEVDUǰ pricing to a more suitable level, digital system’s development and legal music download channel with copyright. The adjustment of product image and new service to serve the changing need and living pattern of consumers encourages more consumers to turn back to legal copyright music download as it is worthwhile and not expensive.

Moreover, the Company has already set up the copyrights’ collection company in order to manage the copyrights’ collection fees from operators who use the Company’s contents commercially as well as monitoring and suppressing operators who violate the Company’s copyrights. The Government, on this part, has given cooperation and support in law enforcement against the copyrights’ violators. Campaigns on prevention, compression, and suppression copyrights’ violators have been seriously and substantially enforced by the Government. Hence, from cooperation on all sides, the Company expects that impact against UIFǰDPQZSJHIUTĴǰWJPMBUJPOǰXJMMǰCFǰSFEVDFEǰTJHOJųDBOUMZ ǰǰ

Risks from concessions renewal

Concession for Radio Business Normally, the leasing period for the radio station’s broadcasting is about 2 years, if the leasing time has not been extended, it will result on impacts on the broadcasting continuity and the Company’s revenue.

This will include risk on any changes in the contract conditions which may result in the inferior condition from original contract. Moreover, searching for the new radio broadcast’s airing time as replacement may result in losing business continuity, and in building similar popularity rating as the previous program, or may cause higher cost as well. However, the Company truly believes that due to its continuously producing good quality performances and receiving high popularity with constant listeners’ base group, including as an important business operator who abides with standard payment and strictly conforms to payment conditions on airing time as well as on building good relationship with the concession provider, the Company will receive some trust and, thus, reduce some risk that may happen during concession renewal.

Nevertheless, the Company will consider value of the concession renewal by comparing with investment DPTU Ç°*GÇ°UIFÇ°DPODFTTJPOÇ°SFOFXBMÇ°EPFTÇ°OPUÇ°CFOFĹłDJBMÇ°UPÇ° the Company, investment on concession renewal may not be considered.

42

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Concession for Satellite Television Business 5IFÇ° 0GĹłDFÇ° PGÇ° UIFÇ° /BUJPOBMÇ° #SPBEDBTUJOHÇ° BOEÇ° Telecommunications Commission (NBTC) has made announcements on the regulations and methods in giving permission for radio and television broadcasting JOÇ°PSEFSÇ°UPÇ°PSHBOJ[FÇ°UIFÇ°TBUFMMJUFÇ°UFMFWJTJPO Ç°BOEÇ°DBCMFÇ° television operators into its regulatory mechanisms.

The NBTC will issue licenses to operators periodically in which the initial permits will have 1 year duration, and after that consideration will be made to issue licenses of no more than 2 years at a time. During this time, NBTC will take into consideration, using complaints from the people on any offences, including other new regulations that NBTC will introduce in future, as the basis to consider the issuing of the renewal licenses to each operator. The periodic issuing of licenses with a rather short operating time may limit business operations, manufacturing plans, and revenue generating of the Company, however, the Company SFBMJ[FTÇ° UIFÇ° JNQPSUBODFÇ° PGÇ° TUSJDUMZÇ° DPNQMZJOHÇ° XJUIÇ° SVMFTÇ°BOEÇ°SFHVMBUJPOTÇ°JOÇ°PSEFSÇ°UPÇ°DSFBUFÇ°DPOĹłEFOUÇ°UIBUÇ° continuous renewal of license on satellite television will be granted.

3JTLTÇ°GSPNÇ°BOOPVODFNFOUTÇ°POÇ°SFHVMBUJPOTÇ°GSPNÇ°UIFÇ°0GĹłDF of the National Broadcasting and Telecommunications Commission (NBTC) The Company operates the satellite television business and is one of the concession bidders who have won concessions on operating the digital terrestrial television on December 26, 2013. The television business i s considered as a mass communication business that is WFSZÇ°JOĹ´VFOUJBMÇ°UPÇ°UIFÇ°QFPQMFÇ°BTÇ°QFPQMFÇ°DBOÇ°SFBDIÇ°BOEÇ° receive information thoroughly more than any other mass media channels, hence, business operations of the television business is essentially operated VOEFSÇ° UIFÇ° MBXT Ç° 0GĹłDFÇ° PGÇ° UIFÇ° /BUJPOBMÇ° #SPBEDBTUJOHÇ° and Telecommunications Commission (NBTC) is the

Government agency that supervises television business operators in Thailand with its main duty in supervising, and issuing various regulations in order to control free and fair competition among television business operators with ethical standards. Consumers are to be QSPUFDUFEÇ°POÇ°UIFJSÇ°CFOFĹłUT Ç°BOEÇ°OPUÇ°UPÇ°CFÇ°FYQMPJUFEÇ° by business operators such as supervision on the content to have suitable quality with the target group, suitability rating on contents for children and youth, advertising, etc. At present, NBTC still makes regular new announcements in accordance with its policy, and problem concerning business operators, hence, announcements from the NBTC still exist together with all the television business operators. Hence, all the announcements that will be issued to control the television business operations, will not be stable, and XJMMÇ°SFRVJSFÇ°BÇ°QFSJPEÇ°PGÇ°UJNFÇ°UPÇ°SFBMJ[FÇ°BOZÇ°JNQBDUÇ°POÇ° business operations of the Company, and eventually SFĹ´FDUÇ°SJTLTÇ°POÇ°CVTJOFTTÇ°PQFSBUJPOT

Risks from intense competition in the television media business

Over the past years, the television industry encounters intense competition which can be seen from the occurrence of various new programs on satellite and local television channels. The birth of digital television in 2014 will result in hundreds of television channels when summing up of all platforms while consumers will have variety of choices on numerous television channels. The advertising agencies will have more choices for their advertising media by having “ratingâ€? and “value for moneyâ€? as criteria in placing the BEWFSUJTJOHÇ°NFEJBÇ°XIJDIÇ°XJMMÇ°SFTVMUÇ°JOÇ°NPSFÇ°EJGĹłDVMUZÇ° for selling the advertising time. However, from the Company experiences in the production of television programs, and in managing its own satellite television for a long time and having quality personnel which ranks it with high ranking position in satellite television channels from the Nielsen Media Research (the survey

MEDIA REVOLUTIONIST

BOEǰ NBSLFUǰ SFTFBSDIǰ DPNQBOZǰ UIBUǰ JTǰ SFDPHOJ[FEǰ worldwide) will eventually enable it to capture and maintain its market share from competitors in the industry.

Risks from occasional huge marketing events

The Company has continuous plan to expand its business, and some acquired project may require a rather high investment cost which may encounter some risk if revenue management cannot be reach according to plan. Causes may derive from many factors such as from rapid change in technology, changes in consumers’ behavior, various changing trends, more JOUFOTJųFEǰDPNQFUJUJWFǰTJUVBUJPOǰJOǰUIFǰJOEVTUSZǰBTǰXFMMǰ as contract termination, or the occurrence of any event

43

that make it impossible to continue, etc. However, the Company has stipulated the screening process, evaluating its usefulness, and cost effectiveness prior to investment. Study on the project feasibility has to be conducted prior to signing any contract or any other CJOEJOHǰDPOEJUJPOǰCZǰVTJOHǰFYQFSUTǰGSPNǰSFMBUFEǰųFMETǰ to jointly consider for cautiousness and conciseness of the project. Moreover, advanced planning and early preparation have to be conducted by the arranging of pre-sale from supporting sponsors when the project is still in its production process. Additionally, large project has to be approved by the Company’s Board of Directors in order to reduce any risk that may occur from the investment.

44

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

06

Property used in the business

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Property used in the business Property used in the business operations of the Company and subsidiaries company (Group RS) detailed as follows.

Land

The Company and subsidiary company rented the land from the Chetchotisak Company Limited. Detail are described in Related party transactions subject. Moreover in 2013, the Company and its subsidiaries have leased land from individuals outside the group, as detailed below.

Address 1. 431/2-5 Soi Ladphrao 15 Jatujak, Bangkok 2. 48/18 Soi Ladphrao 15 Jatujak, Bangkok

Renter

Contract term

Rental fee/month (Baht)

RS Public Company Limited

3 years (agreement expire on July 2014) RS Public Company Limited 8 years 4.5 months (agreement expire on 16 Oct 2013)

230,000 40,000 - 45,000

0GĹłDFÇ°#VJMEJOH

0GĹłDFÇ°CVJMEJOHTÇ°VTFEÇ°JOÇ°UIFÇ°CVTJOFTTÇ°PGÇ°34Ç°HSPVQ Ç°5IFÇ°EFUBJMTÇ°BSFÇ°BTÇ°GPMMPXT Address

Ownership

Type

Book Value Year 2013 (million Baht)

Obligation

431/2-5 Soi Ladphrao 15 Jatujak, Bangkok

RS Public Company Limited

Owner

0.03

Nil

5IFÇ°$PNQBOZÇ°BOEÇ°TVCTJEJBSZÇ°DPNQBOZÇ°SFOUFEÇ°UIFÇ°0GĹłDFÇ°#VJMEJOHÇ°GSPNÇ°UIFÇ°$IFUDIPUJTBLÇ°$PNQBOZÇ°-JNJUFE Ç°%FUBJMÇ° are described in Related party transactions subject.

Equipments

Equipments used in the business of RS group. The details are as follows Company

Book Value Year 2013

Obligation

Equipment and machinery

Ownership

1. RS Public Company Limited

Studio recording and Broadcast equipment.

Owner

(million Baht) 83.27

2. COOLISM Co.,Ltd.

Recording Equipment

Owner

2.55

Nil

3. RS International Broadcasting & Sports Management Co.,Ltd.

Broadcast equipment.

Owner

3.57

Nil

4. Yaak Co.,Ltd.

Broadcast equipment.

Owner

3.08

Nil

Nil

46

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Warehouse

Warehouse of the Company and its subsidiaries are as follows.

Address 1. 9/102 Phaholyothin Road, Klongluang, Pathumthani 2. 9/26, Building phaholyothin klongluang pathumthani

Renter

Contract term

RS Public Company Limited K-Master Co.,Ltd.

1 Year (agreement expire on Jan 2014) 1 Year (agreement expire on Sep 2014)

Rental fee/ month (Baht) 200,000 100,000

Concession and Radio leases

The Company and its subsidiaries lease radio stations from government agencies and third parties. As follows : Station Ç°Ç°' . Ç° Ç°.)[

Station Owner Navy Radio Station

Contract term 1 Jan 2014 – 31 Dec 2015

Ç°Ç°' . Ç° Ç°.)[

Navy Radio Station

1 Jan 2014 – 31 Dec 2015

Ç°Ç°' . Ç° Ç°.)[

Army Radio Station

1 Mar 2014 – 31 Dec 2014

Television leases

The Company has leased air time at Channel 7 from Bangkok Broadcasting & TV Co., Ltd. (BBTV Channel 7) to broadcast television program in 2013.

Satellite service contract

The Company has signed a satellite service agreement and other services Associated with Thaicom Public Company Limited for a period of 10 years. Effective from 1 August 2013 onwards.

5SBEFNBSLÇ° Ç°TFSWJDFÇ°

“Company� registered trademark / service “RS� for 2 types. The date of Registration is 10 November 2005 and 2 February 2007. Each Trademark has 10 years duration from the date of registration. The trademarks / service that expired, Company has been renewed by the law.

Each subsidiary companies separately registered trademarks.

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Legal disputes

47

48

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Legal disputes $PNQBOZǰ BOEǰ UIFǰ TVCTJEJBSJFTǰ IBEǰ OPǰ MFHBMǰ EJTQVUFǰ UIBUǰ TJHOJųDBOUMZǰ BGGFDUFEǰ UIFǰ $PNQBOZĴTǰ CVTJOFTTǰ PSǰ QPTFEǰ negative effects on the Group’s assets of which its overall value, as at 31 December 2013, was higher than 5% of shareholders’ equity. The Company and the subsidiaries had no legal dispute arisen from an out-of-the-ordinary course of business of the Group either.

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General information and other important information

49

50

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

General information and other important information Company Type of business Address Registration No. Website Tel. Fax Registered Capital Paid-up Capital Share register

Tel Fax Website Auditor Tel Fax Website Legal Tel Fax

: RS Public Company Limited : Current business of RS contains 3 main business. Such as Music Business, Show Business and Media Business including Radio and Television. : 419/1 Soi Ladphrao 15, Ladphrao Road, Chomphon, Jatujak, Bangkok 10900 : 0107546000016 : www.rs.co.th : 02-511-0555 : 02-511-2324 : Baht 1,026,000,280 including 1,026,000,280 ordinary shares at one Baht par value : Baht 969,688,428 including 969,688,428 ordinary shares at one Baht par value : Thailand Securities Depository Co., Ltd. 62 The Stock Exchange of Thailand Building, Rachadapisek Road, Klongtoey, Bangkok 10110 : 02-229-2800 : 02-654-5427 : www.tsd.co.th : Karin Audit Company Limited 6Fl., Room B1, Boonmitr Building, 138 Silom Road, Bangrak, Bangkok 10500 : 0-2634-2484-6 : 0-2634-2668 : http://www.karinaudit.co.th : -FHBMǰ0GųDF ǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFE 419/1 Soi Ladphrao 15, Ladphrao Road, Chomphon, Jatujak, Bangkok 10900 : 02-511-0555 : 02-938-5622

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Securities and Shareholder Information

51

52

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Securities and Shareholder Information Registered Capital and Paid-up Capital

As of December 31, 2013, the Company has the registered capital of Baht 1,026,000,280 including 1,026,000,280 ordinary shares at one Baht par value. The Company has the paid-up capital of Baht 953,866,816 including 953,866,816 ordinary shares at one Baht par value. And As of January 9, 2014, the Company has the registered capital of Baht 969,688,428 including 969,688,428 ordinary shares at one Baht par value

Shareholders

The 10 major shareholders as at the book closure date on December 27, 2013 are as follows:-

No. List of Shareholders

Shares

percentage

1

Mr. Surachai Chetchotisak

309,000,000

32.394

2

Mr. Sorat Vanichvarakij

163,250,000

17.114

3

Mr. Yothin Vanichvarakij

41,088,400

4.308

4

Mr. Pramote Pasawong

20,000,000

2.097

5

RS Public Company Limited

17,000,000

1.782

6

Krungsri Taweesap Retirement Mutual Fund

16,921,400

1.774

7

SIX SIS LTD

15,404,240

1.615

8

Allianz Ayudhya Life Insurance Public Company Limited

13,528,000

1.418

9

Mr. Suwat Chetchotisak

12,550,400

1.316

10

Thai NVDR Company Limited

11,754,195

1.232

-JTUǰPGǰNBKPSǰTIBSFIPMEFSTǰXIP ǰBDDPSEJOHǰUPǰUIFJSǰDPOEVDUT ǰXFSFǰBCMFǰUPǰBTTFSUǰUIFJSǰJOŴVFODFTǰUPXBSETǰUIFǰ management policy and operation procedure of the company with ulterior motives (Shareholding groups or shareholders who owned over 10% and holding position as the company’s director or sending representative as the company’s director).

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Warrants

Warrants of RS Public Company Limited #2 (RS-W2) 5IFÇ°4UPDLÇ°&YDIBOHFÇ°PGÇ°5IBJMBOEÇ°IBTÇ°HSBOUFEÇ°BÇ°MJTUJOHÇ°PGÇ°DFSUJĹłDBUFTÇ°SFQSFTFOUJOHÇ°UIFÇ°SJHIUTÇ°UPÇ°QVSDIBTFÇ°TIBSFTÇ° (warrants RS-W2) of the Company from June 14, 2010 (Trade date) with the following details:

Type of Securities Secondary Market Number of Warrants 6OEFSMZJOHÇ°4IBSFTÇ°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°

RS Public Company Limited Warrants # 2 (RS-W2) Main Market 140,000,269 units Ç°TIBSFT

Issuer

RS Public Company Limited. The warrants were offered to existing shareholders names appeared in the shareholder register on May 12, 2010 in accordance to Section 225 of Securities and Stock Exchange of Thailand Act regarding the closing method of the shareholders register book and determining the rights of the Shareholders on May 13, 2010, at a ratio of 5 existing ordinary shares to 1 unit of Warrant for free.

Rights of Warrants

5IFÇ°8BSSBOUÇ°IPMEFSTÇ°DFSUJĹłDBUFTÇ°IBWFÇ°SJHIUTÇ°UPÇ°QVSDIBTFÇ°PSEJOBSZÇ°TIBSFTÇ°PGÇ°34Ç°1VCMJD Company Limited at the Exercise Ratio of 1 unit of Warrant for 1 ordinary share at an Exercise Price of Baht 1.90 per share. However, the Exercise Price and Exercise Ratio are subject to any adjustment in the Exercise Price and Exercise Ratio.

5ZQFÇ°PGÇ°8BSSBOUTÇ°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°

5SBOTGFSBCMFÇ°OBNFEÇ°DFSUJĹłDBUF

Term of Warrants

4 years from the issued date (Date of Issuance is on May 20, 2010, Date of Maturity Maturity and Last Exercise Date is on May 19, 2014 and warrants will be delisted on the next day.)

Offering Price

Baht 0 (Baht Zero)

Exercise of Warrants:

Warrant Holders can exercise the right to purchase ordinary shares of the Company UIFÇ°MBTUÇ°#VTJOFTTÇ°%BZÇ°PGÇ°+VOFÇ°BOEÇ°%FDFNCFSÇ°PGÇ°FBDIÇ°ZFBS Ç°5IFÇ°ĹłSTUÇ°FYFSDJTFÇ°EBUFÇ° is on June 30, 2011 and the last exercise date is on May 19, 2014.

Dividend payment policy 5IFÇ°DPNQBOZÇ°BOEÇ°JUTÇ°TVCTJEJBSJFTÇ°XJMMÇ°QBZÇ°BÇ°EJWJEFOEÇ°OPUÇ°MFTTÇ°UIBOÇ° Ç°QFSÇ°DFOUÇ°PGÇ°OFUÇ°QSPĹłUÇ°BGUFSÇ°UBYÇ°BOEÇ°MFHBMÇ° reserve. However, the Board of Directors may consider and decide not to follow this policy, or adjust it in order to NBYJNJ[FÇ°UIFÇ°CFOFĹłUÇ°UPÇ°UIFÇ°TIBSFIPMEFST

54

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

10

Management Structure

MEDIA REVOLUTIONIST

Management Structure Board of Directors Nomination and Remuneration Committee Risk Management Committee Corporate Governance Committee

Audit Committee Executive Board

Internal Audit

CEO

Human Development Committee

$IJFGǰ0QFSBUJOHǰ0GųDFS Human Resource and Administration Corporate Communication Corporate Branding Sport

$IJFGǰ'JOBODJBMǰ0GųDFS

$IJFGǰǰ$PNNFSDJBMǰ0GųDFS

-FHBMǰ0GųDF

Finance & Accounting

Corporate Client Management

Music and Digital

Information Technology

Radio

Showbiz Television

55

56

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

RS Public Company Limited Music

Showbiz

Media

RS Public Company Limited

RS Public Company Limited

Television

Thai Copyright Collection Co.,Ltd.

K. Master Co.,Ltd.

RS Public Company Limited

RS Public Company Limited

Poema Co.,Ltd

YAAK Co.,Ltd.

COOLISM Co.,Ltd.

Blu Fairy Co.,Ltd.

K.Master Co.,Ltd

Nagasia Co.,Ltd. Aladdin House Co.,Ltd. Dee Media & Production Co., Ltd

Radio

RS International Broadcasting & Sports Management Co.,Ltd. **

Publishing

Moderntrade

Idea Power Co., Ltd.***

RS In-store Media Co., Ltd. *

Temporarily Suspended.

- RS Film & Distribution Co., Ltd. - Avant Co., Ltd. - R.S. Sportmaster Co., Ltd. Ç°#BOHLPLÇ°0SHBOJ[FSÇ°$P Ç°-UE - R.S. Television Co., Ltd. - R Siam Co., Ltd. - S-One Sports Co., Ltd. * 65% shares held by RS Public Company Limited ** 83.33% shares held by RS Public Company Limited *** 25% shares held by Poema Co., Ltd. As at December 31, 2013

Remark : In case of non 100% subsidiary, the rest of core shareholders are not the connected person of RS Public Company Limited.

Management structure of the company consists of 7 set of committees and subcommittees including: Board of Directors, Audit Committee, Nomination and Remuneration Committee, Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee. Details are as follows:

MEDIA REVOLUTIONIST

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Board of Directors

"TÇ°BUÇ°%FDFNCFSÇ° Ç° Ç°5IFÇ°#PBSEÇ°PGÇ°%JSFDUPSTÇ°DPOTJTUTÇ°PGÇ°UIFÇ°GPMMPXJOHÇ°RVBMJĹłFEÇ°QFSTPOT 1. Mr.Surachai 2. Mrs. Pornpan

Chetchotisak Techarungchaikul

3. Mr. Darm

Nana

4. Mr. Danaisidh

Peslapunt

5. Mr. Sutthisak 6. Mr. Sorat 7. Mr. Phisit

Prasatkarukarn Vanichvarakij Dachanabhirom

8. General Pairoj

Panichsamai

9. Associate Professor Witaya Danthamrongkul

Chairman Director, Executive Committee, Risk Management Committee Chairman, Good Corporate Governance Committee Chairman, Human Development Committee Chairman and Company Secretary Director, Executive Committee Risk Management Committee Good Corporate Governance Committee Director Nomination and Remuneration Committee Director Director Independent Director, Audit Committee Chairman Nomination and Remuneration Committee Chairman Independent Director and Audit Committee Nomination and Remuneration Committee Independent Director and Audit Committee Nomination and Remuneration Committee

%FĹłOJUJPOÇ°PGÇ°*OEFQFOEFOUÇ°%JSFDUPSTÇ° *OEFQFOEFOUÇ°%JSFDUPSTÇ°BSFÇ°EFĹłOFEÇ°BTÇ°FYUFSOBMÇ°EJSFDUPS Ç°OPUÇ°JOWPMWJOHÇ°JOÇ°&YFDVUJWFT Ç°DPNQBOZÇ°TUBGG Ç°&YFDVUJWFÇ°%JSFDUPSÇ° PSÇ°BVUIPSJ[FEÇ°TJHOBUPSZÇ°EJSFDUPS Ç°BOEÇ°CFÇ°JOEFQFOEFOUÇ°GSPNÇ°NBKPSÇ°TIBSFIPMEFST Ç°&YFDVUJWFTÇ°BOEÇ°SFMBUFEÇ°QBSUJFT Ç°*OÇ° addition, Independent Directors are able to consider equitable treatment to shareholders and to preempt any QPTTJCMFÇ°DPOĹ´JDUÇ°PGÇ°JOUFSFTUÇ°CFUXFFOÇ°UIFÇ°DPNQBOZÇ°BOEÇ°SFMBUFEÇ°QBSUJFT Ç°*OEFQFOEFOUÇ°%JSFDUPSTÇ°TIBMMÇ°QPTTFTTÇ°UIFÇ° RVBMJĹłDBUJPOTÇ°BTÇ°GPMMPXT Ç° 1. Hold shares not exceeding 0.5% of the total number of shares entitled to voting rights in the Company, the parent company, the subsidiary companies, the associated companies or any corporations that may cause a DPOĹ´JDUÇ°PGÇ°JOUFSFTU Ç°XIJDIÇ°TIBMMÇ°CFÇ°JODMVTJWFÇ°PGÇ°UIFÇ°TIBSFTÇ°IFMEÇ°IJT IFSÇ°SFMBUFEÇ°QBSUJFT

58

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

2. He/she has been neither Executive directors** nor been an employee/staff member/advisor getting salary paid, both in present time and two years before the appointment, of/by the Company, the subsidiary companies, the BTTPDJBUFEÇ°DPNQBOJFT Ç°UIFÇ°BGĹłMJBUFEÇ°DPNQBOJFT Ç°PSÇ°BOZÇ°DPSQPSBUJPOTÇ°UIBUÇ°NBZÇ°DBVTFÇ°BÇ°DPOĹ´JDUÇ°PGÇ°JOUFSFTU 3. No relationship by blood or legal registration as parent, spouse, sibling, son/daughter and/or son/daughter inMBXÇ°PGÇ°BOÇ°FYFDVUJWFÇ°PGĹłDFSÇ°PSÇ°BÇ°NBKPSÇ°TIBSFIPMEFSÇ°XJUIÇ°DPOUSPMMJOHÇ°QPXFS Ç°PSÇ°BÇ°DBOEJEBUFÇ°XIPÇ°XJMMÇ°CFÇ°OPNJOBUFEÇ° as an executive or a person in charge of the operations of the Company or the subsidiary companies.

4. Business relations can be divided as follows: (a) Relationship types Relationship between professional service providers and users Ç°Ç°'FBUVSFT Ç°"VEJUPST Ç°PUIFSÇ°QSPGFTTJPOBMÇ°TFSWJDFÇ°QSPWJEFSTÇ°TVDIÇ°BTÇ°MFHBMÇ°DPOTVMUBOUT Ç°ĹłOBODJBMÇ°BEWJTPST Ç° property appraisers, etc. Ç°Ç°4JHOJĹłDBOUÇ°MFWFMTÇ°UIBUÇ°BSFÇ°DBUFHPSJ[FEÇ°OPO JOEFQFOEFODF - Auditors: be prohibited in all cases - Other professional service providers: Transaction value exceeds Baht 2 million a year.

Trade/Business Relations (apply the similar guidelines to the Stock Exchange’s requirements regarding related party transactions: - Features: Business transactions in all types including normal transactions, real property leases/out-leases, ǰBTTFU TFSWJDF SFMBUFEǰUSBOTBDUJPOT ǰBOEǰųOBODJBMǰBTTJTUBODFǰHSBOUTǰPSǰSFDFJQUT ǰǰ4JHOJųDBOUǰMFWFMTǰUIBUǰBSFǰDBUFHPSJ[FEǰOPO JOEFQFOEFODF 5SBOTBDUJPOǰWBMVFǰJTǰœǰ#BIUǰ ǰNJMMJPOǰPSǰœǰ ǰPGǰUIFǰ$PNQBOZĴTǰ/5"ǰ OFUǰUBOHJCMFǰBTTFUT ǰXIJDIFWFSǰ is lower.

While considering a value in each time of transaction, the total value of previous transactions over the past 6 months shall be inclusive.

C ǰ5IFǰTBNFǰSFMBUJPOTIJQǰBTǰ5ZQFǰ B ǰXJUIǰDPSQPSBUJPOTǰUIBUǰBSFǰDBUFHPSJ[FEǰOPO JOEFQFOEFODFǰTVDIǰBTǰNBKPSǰ shareholders, directors (except independent/audit directors) and executives or partners of those corporations. (c) Prohibited period for no relationship in both types (a) and (b): In present time and two years before the appointment. (d) Exemptions: In a necessary and reasonable case which does not happen frequently or constantly, an JOEFQFOEFOU BVEJUǰEJSFDUPSǰNBZǰCFBSǰBǰSFMBUJPOTIJQǰCFZPOEǰUIFǰTJHOJųDBOUǰMFWFMT ǰBTǰTFUǰPVUǰBCPWF ǰEVSJOHǰ IJTǰPSǰIFSǰUFSNǰJOǰPGųDF ǰQSPWJEFEǰUIBUǰBǰQSJPSǰBOEǰVOBOJNPVTǰBQQSPWBMǰGSPNǰUIFǰCPBSEǰPGǰUIFǰ$PNQBOZǰJTǰ obtained. Furthermore, the board of the Company must provide the disclosure of information regarding the BGPSFTBJEǰSFMBUJPOTIJQǰJOǰBǰSFHJTUSBUJPOǰTUBUFNFOUǰGPSǰBǰQVCMJDǰPGGFSJOHǰPSǰTFDVSJUJFTǰQMBDFNFOUǰ ųMJOHǰGPSN ǰBOǰ annual information disclosure (Form 56-1) and an annual report (Form 56-2). If that independent/audit director is nominated for another term, the board of the Company shall provide a description of the said relationship in the notice of the shareholders’ meeting on an agendum for the election of director.

MEDIA REVOLUTIONIST

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5. Be not appointed as a representative of any board members or major shareholders of the company, as well as being not appointed as a representative of other shareholders who bear relationship with major shareholders of the Company.

6. No restrictions that make him/her unable to freely express his/her opinions. ǰǰ"OǰJOEFQFOEFOUǰEJSFDUPS ǰXJUIǰUIFǰDPNQMFUFǰRVBMJųDBUJPOT ǰBTǰTUBUFEǰJOǰDMBVTFTǰ ǰNBZǰCFǰEFTJHOBUFEǰBOEǰ BVUIPSJ[FEǰCZǰUIFǰCPBSEǰPGǰUIFǰ$PNQBOZǰUPǰNBLFǰBǰEFDJTJPOǰSFHBSEJOHǰUIFǰPQFSBUJPOTǰPGǰUIFǰ$PNQBOZ ǰUIFǰQBSFOUǰ DPNQBOZ ǰUIFǰTVCTJEJBSZǰDPNQBOJFT ǰUIFǰBTTPDJBUFEǰDPNQBOJFT ǰUIFǰBGųMJBUFEǰDPNQBOJFTǰBOE PSǰPUIFSǰDPSQPSBUJPOTǰ UIBUǰNBZǰDBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTU ǰXIJDIǰTVDIǰEFDJTJPOǰDBOǰCFǰDPMMFDUJWFMZǰNBEFǰ DPMMFDUJWFǰEFDJTJPO

*GǰBOǰJOEFQFOEFOUǰEJSFDUPSǰPGǰUIFǰ$PNQBOZǰBMTPǰIPMETǰPGųDFǰBTǰBOǰJOEFQFOEFOUǰEJSFDUPSǰGPSǰUIFǰQBSFOUǰDPNQBOZ ǰ UIFǰTVCTJEJBSZǰDPNQBOJFTǰBOE PSǰUIFǰBGųMJBUFEǰDPNQBOJFT ǰUIFǰCPBSEǰPGǰUIFǰ$PNQBOZǰTIBMMǰQSPWJEFǰUIFǰEJTDMPTVSFǰ of such information as well as the disclosure of overall remuneration that certain independent director gets paid, JOǰUIFǰųMJOHǰGPSN ǰ'PSNǰ ǰBOEǰ'PSN ǰSFTQFDUJWFMZ Notes

* Related parties mean persons under Section 258 of Securities and Exchange Act. ǰ&YFDVUJWFǰEJSFDUPSTǰNFBOǰQFSTPOTǰXIPǰJOWPMWFǰJOǰUIFǰNBOBHFNFOUǰPGǰUIFǰ$PNQBOZ ǰIPMEǰPGųDFǰBOEǰBSFǰJOǰDIBSHFǰPGǰUIFǰ$PNQBOZǰ BTǰBOǰFYFDVUJWF ǰBOEǰBSFǰBVUIPSJ[FEǰTJHOBUPSJFTǰUPǰFYFDVUFǰBǰCJOEJOHǰEPDVNFOUǰPOǰCFIBMGǰPGǰUIFǰ$PNQBOZ ǰFYDFQUǰBǰTQFDJųFEǰQFSTPOǰ in any transaction already been approved by the Board to sign a binding document jointly with other director(s).

"GųMJBUFEǰDPNQBOJFTǰNFBOǰTVCTJEJBSJFTǰPGǰUXPǰBOEǰVQǰIBWJOHǰUIFǰTBNFǰQBSFOUǰDPNQBOZ

Directors with Authority to Sign for the Company %JSFDUPSTǰBVUIPSJ[FEǰUPǰTJHOǰGPSǰUIFǰDPNQBOZǰBSFǰ.S ǰ4VSBDIBJǰ$IFUDIPUJTBL ǰ.S ǰ%BOBJTJEIǰǰ1FTMBQVOU ǰ.ST ǰ1PSOQBOǰ 5FDIBSVOHDIBJLVM ǰ.S ǰ%BSNǰ/BOBǰBOEǰ.S ǰ4VUUIJTBLǰ1SBTBULBSVLBSO ǰ5XPǰPGǰBCPWFǰEJSFDUPSTǰDBOǰKPJOUMZǰTJHOǰBOEǰBGųYǰ the company seal.

Roles of Board of Directors The Extraordinary General Meeting of Shareholders No. 1/2003 held on January 13, 2003 had the resolution to EFUFSNJOFǰUIFǰTDPQFǰPGǰ#PBSEǰPGǰ%JSFDUPSTĴǰBVUIPSJUZǰJOǰUIBUǰ#PBSEǰPGǰ%JSFDUPSTǰJTǰBVUIPSJ[FEǰUPǰDPNNJUǰBOZǰBDUTǰ necessary for or related to the normal business operation of the company. The Board of Directors is in charged with overseeing the company’s operations to be in compliance with the country’s laws and regulations as well as the policies and resolutions of shareholders’ meetings. The Board of Directors can appoint the committee or assign any other persons to take any or several actions under the control of the Board of Directors except for the actions stated below. Those actions can be performed after receiving the approval from the shareholders’ meeting. *OǰDBTFTǰXIFSFǰUIFǰDPNNJUUFFǰPSǰBOZǰQFSTPOǰIBTǰBǰDPOŴJDUǰPGǰJOUFSFTUǰXJUIǰUIFǰDPNQBOZǰPSǰJUTǰTVCTJEJBSJFT ǰUIFǰ DPNNJUUFFǰJOWPMWFEǰJOǰUIBUǰDPOŴJDUǰNBZǰOPUǰWPUFǰPOǰUIBUǰDBTF ǰ

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

(A) Any case that the laws mention must be in compliance with the resolution of the shareholders’ meeting.

(B) Performing cases where the committee gains the interest or where the laws and regulations the Stock Exchange of Thailand are mentioned must be approved by the shareholders’ meeting.

The following cases must be approved by the Board of Directors’ meeting and the shareholders’ meeting with a voting score of three-fourths of the number of shareholders attending the meeting and voting: (A) Trading or transferring the company’s businesses or an important part of the business.

(B) Acquiring or receiving transferred business from other companies or private entities.

(C) Making, rectifying or terminating the renting contracts for the entire business of the company or an important section of it. Appointing any person to run the company’s business or form a merger with any person for the QVSQPTFǰPGǰQSPųUǰBOEǰMPTTǰTIBSJOH ǰ (D) Amending the Articles of Association or Memorandum of Association.

(E) Increasing or reducing capital, issuing debentures, forming mergers or closing the company.

(F) Any actions mentioned in the Securities Act or announcements by the Stock Exchange of Thailand requiring the approval of the shareholders’ meeting, such as the acquisition or disposal of assets of the listed company or any related items.

The Company’s Board of Directors is responsible for consideration the list of new Directors who have been screened and presented by the Nomination and Remuneration Committee. The listed Directors must be ready to dedicate their times, knowledge, and capabilities for the company, and understand the duties and responsibilities of Director as well. The company has in place the procedure to keep new directors informed about its business and operation for them to possess profound knowledge and understanding in the company’s business.

In addition, the Board of Directors conduct the annual assessment of their performance in line with the selfBTTFTTNFOUÇ°GPSNÇ°UPÇ°JOTQFDU Ç°BTÇ°XFMMÇ°BTÇ°FOIBODFÇ°UIFÇ°FGĹłDJFODZÇ°PG Ç°UIFJSÇ°QFSGPSNBODF Ç°

Board of Directors Meeting Attendance for year 2013

1.

2.

3.

4.

5.

6.

7.

8.

9.

Name Mr. Surachai Chetchotisak Mrs. Pornpan Techarungchaikul Mr. Darm Nana Mr. Danaisidh Peslapunt Mr. Sutthisak Prasatkarukarn Mr. Sorat Vanichvarakij Mr. Phisit Dachanabhirom General Pairoj Panichsamai Associate Professor Witaya Danthamrongkul

Title Chairman Director Director Director Director Director Independent Director Independent Director Independent Director

No. of Attendance 4/4 4/4 4/4 3/4 4/4 4/4 4/4 4/4 4/4

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Audit Committee

As at December 31, 2013. The members of the Audit Committee are : 1. Mr. Phisit 2. General Pairoj 3. Associate Professor Witaya

Dachanabhirom1 Panichsamai Danthamrongkul

Chairman Director Director

Remark : 1 Mr. Phisit Dachanabhirom is the Audit Committee Member that has knowledges and experiences in reviewing the 'JOBODJBMÇ°4UBUFNFOUT Ç°)FÇ°JTÇ°UIFÇ°DFSUJĹłFEÇ°BVEJUPSÇ°$1"Ç°-JDFOTFÇ°/P Ç° Ç°)FÇ°SFOEFSTÇ°IJTÇ°BVEJUÇ°TFSWJDFTÇ°GPSÇ°OPO MJTUFEÇ°DPNQBOZ Ç°Ç°

Responsibilities of Audit Committee A. Attend the Board of Directors Meetings as to participate in policy determination, business decision making and corporate governance issues.

B. Consider and recommend the appointment of the auditor and the proposed audit fee including the following issues : ĝǰǰ5PǰFOTVSFǰUIFǰJOEFQFOEFODFǰPGǰUIFǰFYUFSOBMǰBVEJUPS ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰDPOTJEFSǰBOZǰGBDUPSTǰUIBUǰNBZǰ DPOŴJDUǰXJUIǰUIFǰBVEJUPSĴTǰFGųDJFOUǰBOEǰQSPGFTTJPOBMǰPQFSBUJPOT ǰ ĝǰǰ5PǰGSFFMZǰEJTDVTTǰTJHOJųDBOUǰNBUUFST ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰNFFUǰQSJWBUFMZǰXJUIǰUIFǰFYUFSOBMǰBVEJUPSǰPODFǰ a year, without the management team being present.

C. Consider the policy and code of conduct of the internal audit department as to ensure their continual appropriateness and effectiveness.

D. Review the annual audit plans of the internal audit department.

E. Review the internal control and internal audit system as to ensure their appropriateness and effectiveness by coordinating with the internal and external auditors. The Audit Committee shall consider the following issues : ĝǰǰ5PǰTUSFOHUIFOǰUIFǰJOEFQFOEFODFǰPGǰUIFǰJOUFSOBMǰBVEJUǰEFQBSUNFOU ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰBQQSPWFǰBOZǰ selection, promotion, rotation or termination of the department head. ĝǰǰ5PǰFOTVSFǰUIFǰJOEFQFOEFODFǰPGǰUIFǰJOUFSOBMǰBVEJUǰEFQBSUNFOU ǰUIFǰ"VEJUǰ$PNNJUUFFǰTIBMMǰDPOTJEFSǰPUIFSǰ factors that might impact its independent performance, including reporting and supervision processes.

F. Consider the quarterly audit report and recommendations of the internal and external auditors as well as follow up the action taken according to such recommendations. ( Ç°Ç°3FWJFXÇ°UIFÇ°RVBSUFSMZÇ°$PNQBOZÇ°BOEÇ°TVCTJEJBSJFTÇ°ĹłOBODJBMÇ°SFQPSUTÇ°BTÇ°UPÇ°FOTVSFÇ°UIBUÇ°UIFZÇ°BSFÇ°BDDVSBUF Ç°DSFEJCMFÇ° and have adequate information disclosures according to the good corporate governance principle.

H. Ensure that the Company is in compliance with the rules or regulations prescribed by the Stock Exchange of Thailand and any other laws related to its business.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

* ǰǰǰ3FWJFXǰUIFǰSFMBUFEǰUSBOTBDUJPOTǰPGǰUIFǰ$PNQBOZ ǰJUTǰTVCTJEJBSJFTǰBOEǰBOZǰQFSTPOTǰUIBUǰNBZǰDBVTFǰUIFǰDPOŴJDUǰPGǰ JOUFSFTU ǰUPǰFOTVSFǰUIBUǰUIFǰSFMBUFEǰUSBOTBDUJPOTǰBSFǰJOǰBQQSPQSJBUFǰDPOEJUJPOTǰXJUIPVUǰBOZǰCFOFųUǰFNCF[[MFNFOU ǰǰ J. Coordinate with the external auditor to consider any problems or restrictions encountered in performing ųOBODJBMǰTUBUFNFOUTǰBVEJU K. Prepare the Audit Committee report. The report must be signed by the Chairman of the Audit Committee and disclosed in the Company’s Annual Report. Its report should include the following information : Ļǰǰ5IFǰOVNCFSǰPGǰDPNNJUUFFǰNFFUJOHTǰBOEǰBUUFOEBODFǰPGǰFBDIǰNFNCFS Ļǰǰ$PNNFOUTǰPOǰ ǰǰ"DDVSBUFOFTT ǰDPNQMFUFOFTTǰBOEǰDSFEJUBCJMJUZǰPGǰUIFǰDPNQBOZĴTǰųOBODJBMǰSFQPSU ǰǰ"EFRVBDZǰPGǰUIFǰųSNĴTǰJOUFSOBMǰDPOUSPMǰTZTUFN - Compliance with SEC’s and SET’s laws and regulation and other laws relevant to the company’s business.

- Suitability of the external auditor. ǰǰ5SBOTBDUJPOTǰUIBUǰNBZǰDBVTFǰDPOŴJDUTǰPGǰJOUFSFTU ǰǰǰ0UIFSǰDPODFSOTǰUIBUǰIBWFǰBSJTFOǰBTǰUIFǰBVEJUǰDPNNJUUFFǰQFSGPSNFEǰJUTǰEVUJFTǰBTǰEFųOFEǰJOǰUIFǰDPNNJUUFFĴTǰ charter. Ļǰǰ"OZUIJOHǰFMTFǰXIJDIǰTIPVMEǰCFǰNBEFǰBWBJMBCMFǰUPǰTIBSFIPMEFSTǰBOEǰHFOFSBMǰJOWFTUPSTǰXJUIJOǰUIFǰTDPQFǰPGǰ duties and responsibilities assigned by the Board of Directors.

- Ç°5IFÇ°"VEJUÇ°$PNNJUUFFÇ°JTÇ°BVUIPSJ[FEÇ°UPÇ°JOWJUFÇ°UIFÇ°FYFDVUJWFÇ°EJSFDUPST Ç°.BOBHFNFOUÇ°PSÇ°DPODFSOFEÇ°QFSTPOTÇ°UPÇ° either provide necessary information or attend the meeting.

M. Consider any other matters as assigned by the Board of Directors with the consent of the Audit Committee.

Nomination and Remuneration Committee

"TǰBUǰ%FDFNCFSǰ ǰ ǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFFǰDPOTJTUTǰPGǰ ǰRVBMJųFEǰQFSTPOT 1.

2.

3.

4.

Mr. Phisit General Pairoj Associate Professor Witaya Mr. Danaisidh

Dachanabhirom Panichsamai Danthamrongkul Peslapunt

Chairman Director Director Director

Duties and responsibilities of the Nomination and Remuneration Committee B ǰ&TUBCMJTIǰDSJUFSJBǰBOEǰQSPDFEVSFTǰGPSǰTFMFDUJOHǰBǰQFSTPOǰXIPǰJTǰRVBMJųFEǰUPǰIPMEǰPGųDFǰBTǰBǰEJSFDUPS ǰTFMFDUǰ best candidate in adherence to the procedures set out, and make the recommendation to the board who shall subsequently propose the nominee for appointment by the meeting of the shareholders of the Company. The duties and responsibilities can be outlined as follows:

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Ļǰǰ%FUFSNJOFǰRVBMJųDBUJPOTǰPGǰBǰEJSFDUPSǰJOǰBDDPSEBODFǰXJUIǰUIFǰTUSVDUVSF ǰTJ[FǰBOEǰDPNQPTJUJPOǰTFUǰGPSUIǰCZǰUIFǰ board, by taking the following steps: ǰǰǰǰ ǰǰ$POTJEFSǰBǰDPNCJOFEǰTVJUBCJMJUZǰPGǰLOPXMFEHF ǰFYQFSJFODFǰBOEǰFYQFSUJTFǰUPǰEFUFSNJOFǰEFTJSFEǰRVBMJųDBUJPOT ǰǰǰǰ ǰǰǰ"TTFTTǰUIFǰJOEFQFOEFODFǰPGǰFBDIǰDBOEJEBUFǰUPǰTFFǰXIFUIFSǰIF TIFǰJTǰDPNQMFUFMZǰPSǰJODPNQMFUFMZǰRVBMJųFEǰ BTǰBOǰJOEFQFOEFOUǰEJSFDUPS ǰBOEǰUPǰDPOTJEFSǰXIFUIFSǰPSǰOPUǰJUǰJTǰOFDFTTBSZǰUPǰųOEǰBǰOFXǰJOEFQFOEFOUǰEJSFDUPSǰ in the case that the number of independent directors do not reach the numbers as stated in the board’s policy. ǰǰǰĻǰǰ$POTJEFSǰFBDIǰDBOEJEBUFĴTǰQSPNJTJOHǰEFEJDBUJPOǰPGǰUJNF Ļǰǰ4FMFDUǰBOEǰOPNJOBUFǰBǰTVJUBCMFǰDBOEJEBUFǰGPSǰUIFǰCPBSEǰUPǰDPOTJEFSǰBOEǰQSPQPTFǰUIBUǰOPNJOFFǰGPSǰųOBMǰ consideration and appointment by the meeting of the shareholders of the Company.

- Determine a method of director selection that suits the Company’s characteristics. ǰǰǰ ǰǰǰ(PǰUISPVHIǰUIFǰMJTUǰPGǰDBOEJEBUFT ǰBOEǰTFMFDUǰUIFǰCFTUǰPOFǰXIPǰNFFUTǰUIFǰRVBMJųDBUJPOǰSFRVJSFNFOUTǰTFUǰPVU - Conduct a careful check to make sure that the best candidate who will be nominated for the appointment CZǰUIFǰTIBSFIPMEFSTĴǰNFFUJOHǰJTǰEVMZǰRVBMJųFEǰJOǰBDDPSEBODFǰXJUIǰUIFǰSVMFTǰBOEǰSFHVMBUJPOTǰFTUBCMJTIFEǰCZǰUIFǰ authorities. ǰǰǰ ǰǰ"QQSPBDIǰUIBUǰRVBMJųFEǰDBOEJEBUFǰUPǰNBLFǰTVSFǰUIBUǰIF TIFǰBHSFFTǰUPǰBDDFQUǰUIFǰQPTJUJPOǰBTǰEJSFDUPSǰXIFOǰ he/she is appointed by the shareholders of the Company. ǰǰǰ ǰǰ1SPQPTFǰIJT IFSǰOBNFǰGPSǰDPOTJEFSBUJPOǰBOEǰBQQSPWBMǰCZǰUIFǰCPBSE ǰǰ6QPOǰUIFǰCPBSEĴTǰBQQSPWBM ǰBǰOPUJDFǰPGǰ the meeting of the shareholders of the Company in this regard will be made and sent to the shareholders calling them to meet, discuss and consider whether or not to appoint that nominee . (b) Develop a model and guidelines on the payment of directors’ remuneration which will be recommended to the Board who will then propose them to the meeting of the shareholders of the Company for approval. (c) Establish guidelines for evaluating CEO performance. (d) Determine the annual remuneration of directors (e) Offer new ESOP (or warrants) to directors and employees under diverse conditions that will induce directors and staff members to perform duties with their best effort, add a long-time value to the shareholders, and truly FOBCMFǰUPǰSFUBJOǰFGųDJFOUǰBOEǰDPNQFUFOUǰQFSTPOOFM ǰIPXFWFS ǰTVDIǰJODFOUJWFǰTDIFNFǰTIPVMEǰOPUǰDPTUǰUPPǰNVDIǰ and should be fair to the shareholders of the Company.

The Board of Directors' Meeting No. 3/2007 on 26 February 2007 has approved the appointment of the Nomination and Remuneration Committee. And the scope of authority of the Board Nomination and Remuneration Committee.

Executive Committee

As at December 31, 2013: The members of Executive Committee are: 1.

2.

3.

4.

Mr. Surachai Mrs. Pornpan Mr. Darm Mr. Komsan

Chetchotisak Techarungchaikul Nana Chetchotisak

Chairman Director Director Director

64

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Responsibilities of the Executive Committee The Board of Directors Meeting No. 1/2003 held on January 28, 2003 and the Board of Directors Meeting No. 5/2005 held on 31 October 2005 had the resolution to determine the scope of Executive Committee’s authority in that &YFDVUJWFǰ$PNNJUUFFǰJTǰBVUIPSJ[FEǰUPǰDPNNJUǰBOZǰBDUTǰOFDFTTBSZǰGPSǰPSǰSFMBUFEǰUPǰUIFǰOPSNBMǰCVTJOFTTǰPQFSBUJPOǰ of the company. " ǰǰǰ5PǰBQQSPWFǰMPBOTǰPSǰBQQMZǰGPSǰDSFEJUǰGSPNǰųOBODJBMǰJOTUJUVUJPOTǰǰBTǰXFMMǰBTǰBDUJOHǰBTǰTVSFUZǰPSǰNBLJOHǰQBZNFOUTǰ for general activities of the company. The credit limit of each item must be less than 50 million baht or equivalent.

(B) To appoint and remove the company employees who are ranked below Managing Director (currently changed UPÇ°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFS Ç° (C) To initiate, suggest and formulate policy for the business direction and business strategy of the company and present it to the Board of Directors.

(D) To form corporate and management structures and Executive Committee. To oversee all aspects of the recruiting, training, employment and removal of company employees.

(E) To formulate business plans and management powers. To approve the annual budget for business operations and expenses. To run the company following the business plan and strategy as well as the policy and business direction presented to the Board of Directors.

(F) To be responsible for other duties assigned by the Board of Directors in each period.

Approval for carrying out the activities mentioned above would not be granted in cases where the Executive $PNNJUUFF ǰPSǰQBSUJFTǰBVUIPSJ[FEǰCZǰUIFǰ&YFDVUJWFǰ$PNNJUUFF ǰJTǰBVUIPSJ[FEǰUPǰBQQSPWFǰBDUJWJUJFTǰUIBUǰNBZǰDPOŴJDUǰ with the company’s interests under the regulations and announcements of the Stock Exchange of Thailand.

Exceptions would be made for those activities carried out under policies and regulations approved by the Board of Directors, whereby the Board of Directors has the authority to amend or change the responsibilities of the Executive Committee whenever necessary.

Risk Management Committee

"TÇ°BUÇ°%FDFNCFSÇ° Ç° Ç°UIFÇ°3JTLÇ°.BOBHFNFOUÇ°$PNNJUUFFÇ°DPOTJTUTÇ°PGÇ° Ç°RVBMJĹłFEÇ°QFSTPOT 1. Mrs. Pornpan 2. Mr. Darm 3. Mr. Komsan

Techarungchaikul Nana Chetchotisak

Chairman Director Director

MEDIA REVOLUTIONIST

65

Duties and responsibilities of the Risk Management Committee The Company’s Board of Directors meeting no. 5/2010 on August 16, 2010, has the resolution to appoint the Risk .BOBHFNFOUǰ$PNNJUUFF ǰBOEǰIBTǰBVUIPSJ[FEǰJUTǰTDPQFǰPGǰEVUJFTǰBOEǰSFTQPOTJCJMJUJFTǰBTǰGPMMPXT (a) Consider the policy, framework, and procedure on the risk management which includes giving advice to the Company’s Board of Directors and management team on risk management. (b) Supervise and support the risk management so that it is according to plan, and results in achievements for the PSHBOJ[BUJPOǰBTǰXFMMǰBTǰJOǰUIFǰQSPKFDUǰMFWFM D ǰǰ$POTJEFSǰUIFǰ$PNQBOZĴTǰJNQPSUBOUǰSJTLTǰPOǰUIFǰPSHBOJ[BUJPOǰMFWFM ǰBOEǰFWBMVBUFǰUIFǰSJTLǰNBOBHFNFOUǰQSPDFEVSFTǰ to be in accordance with the Company’s strategy and business plan. (d) Report performance to the Audit Committee and the Company’s Board of Directors.

Good Corporate Governance Committee

"TÇ°BUÇ°%FDFNCFSÇ° Ç° Ç°UIFÇ°(PPEÇ°$PSQPSBUFÇ°(PWFSOBODFÇ°$PNNJUUFFÇ°DPOTJTUTÇ°PGÇ° Ç°RVBMJĹłFEÇ°QFSTPOT 1. Mrs. Pornpan 2. Mr. Darm 3. Mr. Komsan

Techarungchaikul Nana Chetchotisak

Chairman Director Director

Duties and responsibilities of the Good Corporate Governance Committee The Company’s Board of Directors meeting no. 1/2011 on February 23, 2011, has the resolution to appoint the (PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFF ǰBOEǰIBTǰBVUIPSJ[FEǰJUTǰTDPQFǰPGǰEVUJFTǰBOEǰSFTQPOTJCJMJUJFTǰBTǰGPMMPXT 1. Propose guideline or policy on the good corporate governance to the Audit Committee and the Company’s Board of Directors.

2. Review or improve guideline or policy on the Company’s good corporate governance.

3. Give suggestions on good corporate governance to the Audit Committee and the Company’s Board of Directors.

4. Supervise Directors and the Management team to comply with the good corporate governance’s policy.

Human Development Committee

As at December 31, 2013, the members of Human Development Committee are: 1. Mrs. Pornpan 2. Mrs. Napaporn 3. Mr. Niwes

Techarungchaikul Treepayak Buakhom

Chairman Director Secretary

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Responsibilities of Human Development Committee Human Development Committee’s responsibilities are as follows : (A) To present human resource policy and management direction.

(B) To draw techniques and strategies for human resource development.

(C) To oversee and supervise human resource operation.

(D) To consider and make decisions on human resource development issues based on the direction approved by the company’s committee.

Management Team

As at December 31, 2013, the members of Management Team are as follows : Ç°Ç°.S Ç°4VSBDIBJÇ°Ç° Ç°Ç°.ST Ç°1PSOQBOÇ°Ç° Ç°Ç°.S Ç°%BSNÇ°Ç°Ç° Ç°Ç°.S Ç°,PNTBOÇ°Ç° 5. Mr. Danaisidh 6. Mr. Soopachai 7. Ms. Chutima

Ç° Ç° Ç° Ç°

$IFUDIPUJTBLÇ° Ç° 5FDIBSVOHDIBJLVMÇ° /BOBÇ° Ç° Ç° $IFUDIPUJTBLÇ° Ç° Peslapunt Nilawan Tichachart

Ç° Ç° Ç° Ç°

$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÇ°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç°Ç° $IJFGÇ°0QFSBUJOHÇ°0GĹłDFS $IJFGÇ°'JOBODJBMÇ°0GĹłDFSÇ° $IJFGÇ°$PNNFSDJBMÇ°0GĹłDFS Senior Vice President Senior Vice President Senior Vice President

3FNBSL Ç°Ç°&YFDVUJWFÇ°SFGFSTÇ°UPÇ°FYFDVUJWFÇ°BTÇ°QFSÇ°EFĹłOJUJPOÇ°GSPNÇ°BOOPVODFNFOUÇ°PGÇ°UIFÇ°4FDVSJUJFTÇ°BOEÇ°&YDIBOHFÇ°$PNNJTTJPOÇ° 4&$ Ç°OPÇ° sor.jor 14/2540

3PMFTÇ°BOEÇ°3FTQPOTJCJMJUJFTÇ°PGÇ°UIFÇ°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÇ° The Board of Directors Meeting No. 1/2003 held on January 28, 2003 and the Board of Directors Meeting No. 5/2005 held on 31 October 2005 had the resolution to determine the scope of Managing Director’s authority in that .BOBHJOHÇ°%JSFDUPSÇ° QSFTFOUMZÇ°DBMMFEÇ°Äś$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSġ Ç°JTÇ°BVUIPSJ[FEÇ°UPÇ°BQQSPWFEÇ°DPNNJUÇ°BOZÇ°BDUTÇ°OFDFTTBSZÇ° for or related to the normal business operation of the company. The Managing Director (presently called “Chief &YFDVUJWFÇ°0GĹłDFSġ Ç°JTÇ°DPODFSOFEÇ°XJUIÇ°UIFÇ°DPNQBOZÇ°JOÇ°HFOFSBMÇ°BOEÇ°IBTÇ°UIFÇ°BVUIPSJUZÇ°UPÇ°DBSSZÇ°PVUÇ°BOZÇ°BDUJWJUZÇ°UIBUÇ°JTÇ° necessary. The credit limit of each item must be less than 25 million baht or equivalent. However, the Managing %JSFDUPSÇ° QSFTFOUMZÇ°DBMMFEÇ°Äś$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSġ Ç°IBTÇ°OPÇ°BVUIPSJUZÇ°UPÇ°EFBMÇ°XJUIÇ°JNQPSUBOUÇ°BTTFUTÇ°SFDFJWFEÇ°PSÇ°TPMEÇ° PVUÇ°PGÇ°UIFÇ°DPNQBOZ Ç°PSÇ°NBUUFSTÇ°DPODFSOJOHÇ°QFSTPOTÇ°XIPÇ°NBZÇ°CFÇ°JOÇ°DPOĹ´JDUÇ°XJUI Ç°PSÇ°IBWFÇ°DPOĹ´JDUÇ°PGÇ°JOUFSFTUÇ°XJUIÇ° UIFÇ°BDUJWJUJFTÇ°PGÇ°UIFÇ°DPNQBOZÇ°PSÇ°BGĹłMJBUFEÇ°DPNQBOJFT Ç°*OÇ°TVDIÇ°JOTUBODFT Ç°UIFÇ°"VEJUÇ°$PNNJUUFFÇ°BOE PSÇ°UIFÇ°#PBSEÇ°PGÇ° Directors, depending on the case, will consider the matter.

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Company Secretary

5IFÇ° #PBSEÇ° PGÇ° %JSFDUPSTÇ° IBTÇ° BQQPJOUFEÇ° UIFÇ° $IJFGÇ° 0QFSBUJOHÇ° 0GĹłDFSÇ° UPÇ° CFÇ° UIFÇ° $PNQBOZÇ° 4FDSFUBSZ Ç° 5IFÇ° QSFTFOUÇ° Company Secretary is Mrs. PornpanTecharungchaikul. The Company Secretary duty is to ensure that the Company complies with the Good Corporate Governance of the Stock Exchange of Thailand.

Name position Age Education Ç° Ç° Ç° Ç°

Ç°Ç°Ç°Ç° Ç°

Relationship between Management Experience Ç°

Ç°

Ç°

Mrs. Pornpan Techarungchaikul Director, Executive Committee, Risk Management Committee Chairman,Good Corporate Governance Committee Chairman, Human Development Committee Chairman and Company Secretary 43 Years - Master degree (MBA) from Sasin Graduate institute of Business Administration of Ç°Ç°Ç°$IVMBMPOHLPSOÇ°6OJWFSTJUZ Ç°Ç°#BDIFMPSÇ°EFHSFFÇ°PGÇ°4UBUJTUJDTÇ°$IVMBMPOHLPSOÇ°6OJWFSTJUZ - Executive Development Program 4 (EDP 4) Year 2009 Thai Listed Companies Association -None2004 - present Director RS Public Company Limited 2008 - present Secretary to the Board of Directors and Company Secretary RS Public Company Limited Ç° Ç°QSFTFOUÇ°Ç°Ç°$IJFGÇ°0QFSBUJOHÇ°0GĹłDFSÇ°Ç°34Ç°1VCMJDÇ°$PNQBOZÇ°-JNJUFE

Executive Remuneration Cash Remuneration (A) Directors List Directors Audit Committee

No. 9 3

Year 2013 Amount of money (Baht) Detail of Remuneration 720,000 Fixed remuneration and Meeting allowance 1,674,500 Fixed remuneration and Meeting allowance

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Detail of Remuneration and Meeting allowance are as follows: No. Board of Director 1 2 3 4 5 6 7 8 9

Mr. Surachai Mrs. Pornpan Mr. Darm Mr. Danaisidh Mr. Sutthisak Mr. Sorat Mr. Phisit General Pairoj Mr. Witaya Total

Chetchotisak Techarungchaikul Nana Peslapunt Prasatkarukarn Wanichwarakij Dachanabhirom Panichsamai Danthamrongkul

Year 2012 Fixed remuneration (Baht) Meeting allowance (Baht) 100,000 80,000 80,000 60,000 80,000 80,000 80,000 80,000 80,000 720,000

/PUF Ç°%JSFDUPSÇ°SFNVOFSBUJPOÇ°JTÇ°UIFÇ°CFOFĹłUÇ°QBJEÇ°UPÇ°UIFÇ°DPNQBOZÄ´TÇ°EJSFDUPSTÇ°JOÇ°BDDPSEBODFÇ°XJUIÇ°4FDUJPOÇ° Ç°PGÇ°UIFÇ°1VCMJDÇ°$PNQBOZÇ° -JNJUFEÇ°"DUÇ°# & Ç° Ç° FYDMVEJOHÇ°TBMBSZÇ°BOEÇ°SFMFWBOUÇ°CFOFĹłUTÇ°QBJEÇ°UPÇ°UIFÇ°EJSFDUPSTÇ°XIPÇ°BMTPÇ°IPMEÇ°UIFÇ°UJUMFÇ°PGÇ°UIFÇ°DPNQBOZÄ´TÇ° executives). There is no remuneration for the directors of subsidiaries.

(B) Executive Directors and Management Team

List Executive Directors Management team

No. 4 7

Year 2013 Amount of money (Baht) Detail of Remuneration 82.79 Salary/bonus/ other allowance

In 2013, the Company has paid provident fund to 6 Executives at approximate amount of Baht 1.47 million.

Other Remuneration -Nil-

Personnel

The number of employees in the company and its subsidiaries as of 31 December 2013 is 1,182 persons of which DBUFHPSJ[FEÇ°JOUPÇ°34Ç°FNQMPZFFTÇ°PGÇ° Ç°QFSTPOTÇ°BOEÇ°TVCTJEJBSJFTÄ´Ç°FNQMPZFFTÇ°PGÇ° Ç°QFSTPOT 5IFÇ°UPUBMÇ°SFXBSETÇ°PGÇ° company staff as of the year 2013 amounted to Baht 579.72 million, paid in the form of salaries, overtime and welfare payments, bonus and provident fund, as well as provident fund for employees totaling about Baht 13 Million.

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Human Resources Development Policy

Ç° Ç° 5IFÇ° $PNQBOZÇ° SFBMJ[FTÇ° UIFÇ° JNQPSUBODFÇ° PGÇ° FNQMPZFFTÇ° BTÇ° IVNBOÇ° DBQJUBM Ç° UIFÇ° NPTUÇ° WBMVBCMFÇ° GBDUPSÇ° UIBUÇ° JTÇ° JOTUSVNFOUBMÇ°JOÇ°TUFFSJOHÇ°UIFÇ°PSHBOJ[BUJPOÇ°UPXBSETÇ°HSPXUIÇ°POÇ°BÇ°TVTUBJOBCMFÇ°CBTJT Ç°)FODF Ç°BOOVBMÇ°PQFSBUJPOBMÇ°QMBOÇ° BOEÇ°CVEHFUÇ°IBWFÇ°CFFOÇ°DMFBSMZÇ°TQFDJĹłFEÇ°BOEÇ°BSSBOHFEÇ°BDDPSEJOHMZ Ç°)VNBOÇ°SFTPVSDFTÇ°EFWFMPQNFOUÇ°JTÇ°EJWJEFEÇ°JOUPÇ° UISFFÇ°MFWFMTÇ°J F Ç°0SHBOJ[BUJPOÇ°%FWFMPQNFOU Ç°$BSFFSÇ°%FWFMPQNFOUÇ°BOEÇ°5SBJOJOHÇ°%FWFMPQNFOU Ç°Ç°0SHBOJ[BUJPOÇ°EFWFMPQNFOUÇ°IBTÇ°QSPNPUFEÇ°UIFÇ°DSFBUJPOÇ°PGÇ°DPSQPSBUFÇ°DVMUVSFÇ°XJUIJOÇ°DPNQBOJFTÇ°VOEFSÇ°UIFÇ° 34Ç°1VCMJDÇ°$PNQBOZÇ°-JNJUFEÇ°TJODFÇ°PSJFOUBUJPOÇ°PGÇ°OFXÇ°FNQMPZFFT Ç°BOEÇ°UISPVHIÇ°PUIFSÇ°ZFBS SPVOEÇ°ĹłFMEÇ°USJQÇ°BDUJWJUJFTÇ° such as RS Team Building for employees, and RS Team Leader for Executive level throughout the year. Ç° Ç° &NQMPZFFTÄ´Ç° $BSFFSÇ° %FWFMPQNFOUÇ° UIBUÇ° EFĹłOFTÇ° QSPHSFTTJWFÇ° DBSFFSÇ° QBUIÇ° BOEÇ° TUJQVMBUFTÇ° UIFÇ° QSPNPUJPOÇ° path which includes stipulation on training duration on management courses for group to be promoted to each NBOBHFNFOUÇ°MFWFMÇ°UISPVHIÇ°.BOBHFNFOUÇ°F -FBSOJOH Ç°5IJTÇ°USBJOJOHÇ°DPVSTFÇ°BOEÇ°UIFÇ°PO MJOFÇ°UFTUÇ°POÇ°PSHBOJ[BUJPOÄ´TÇ° NBOBHFNFOUÇ°DPNQFUFODZÇ°GPSÇ°FYFDVUJWFÇ°MFWFMÇ°BOEÇ°NJEEMFÇ°NBOBHFSTÇ° Ç°*OÇ° Ç°JUÇ°XBTÇ°PSHBOJ[FEÇ°UISPVHIÇ°UIFÇ°QSPHSBNÇ° for 1 generation.

1.3 Training Development is stipulated by using the Competency Base Training together with research on the Training Need with development methods on both Public Training, and In-House Training. These trainings cover on the Knowledge Development, Attitude Development, and Skill Development such as Sale course topic concerning Sale Management, Presentation for Success, Brand Image and Personality Development in Sales, etc. The Company BMTPÇ°PSHBOJ[FTÇ°OPO USBJOJOHÇ°BDUJWJUJFTÇ°BOEÇ°LOPXMFEHF TIBSJOHÇ°QSPHSBNTÇ°JOÇ°XIJDIÇ°FNQMPZFFTÇ°BSFÇ°BMMPXFEÇ°UPÇ°BUUFOEÇ°JGÇ° they are interested which are in the form of special lectures by successful executives and speakers from external PSHBOJ[BUJPOTÇ°TVDIÇ°BTÇ°TQFDJBMÇ°MFDUVSFÇ°DPODFSOJOHÇ°LOPXMFEHFÇ°POÇ°SFWFOVFÇ°UBY Ç°5IFÇ°5BMLÇ°4IPXÇ°LOPXMFEHFÇ°PGÇ°UIFÇ° JOWFTUNFOUÇ°Äś6TFEÇ°.POFZÇ°MJLFÇ°BÇ°TMBWFġǰ"OEÇ°UIFÇ°LOPXMFEHFÇ°PGÇ°UIFÇ°-5'Ç° Ç°3.' Ç°FUD Ç°Ç°Ç° 2. The Company indicates the importance in continuously building employee engagement through diverse activities such as the New Year party and The Futsal competition to make relationship of the various departments XJUIJOÇ°UIFÇ°PSHBOJ[BUJPO Ç°FUD Ç°Ç°5IFÇ°$PNQBOZÇ°BMTPÇ°SFBMJ[FTÇ°JOÇ°CVJMEJOHÇ°BQQSFDJBUJPOÇ°UPXBSETÇ°DPSQPSBUFÇ°TPDJBMÇ°SFTQPOTJCJMJUZÇ° $43 Ç°UPÇ°FNQMPZFFT Ç° and to be continuously in accordance with the corporate vision by promoting and arranging for activities such as FOFSHZÇ°TBWJOHÇ°BDUJWJUZÇ°VOEFSÇ°UIFÇ°DBNQBJHOÇ°Äś0GĹłDFÇ°/P Ç° Ç°BDUJWJUZÇ°POÇ°EPOBUJOHÇ°CMPPEÇ°POÇ°UIFÇ°PDDBTJPOÇ°PGÇ°)FSÇ°.BKFTUZÇ° the Queen’s Birthday on Mother Day continuous for the 5th year running, CSR Day activity within the Company; activity for RS employees on charity run in the 26th Standard Charter Bangkok Marathon; and internal training for “CSR Branding for Sustainabilityâ€?, etc. Ç°Ç°.PSFPWFS Ç°UIFÇ°$PNQBOZÇ°BMTPÇ°FNQIBTJ[FTÇ°POÇ°TBGFUZÇ°BOEÇ°IFBMUIÇ°JOÇ°UIFÇ°PGĹłDFÇ°CZÇ°DPNNVOJDBUJOHÇ°LOPXMFEHF Ç°BOEÇ° OFXTÇ°XJUIJOÇ°UIFÇ°PSHBOJ[BUJPOÇ°UISPVHIÇ°WBSJPVTÇ°NFEJB Ç°BOEÇ°PSHBOJ[FTÇ°USBJOJOHÇ°BDUJWJUJFTÇ°POÇ°ĹłSFÇ°FYUJOHVJTIJOHÇ°BOEÇ°ĹłSFÇ° escaping methods.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

11

Corporate Governance

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Corporate Governance 5IFÇ° $PNQBOZÇ° IBTÇ° TUJQVMBUFEÇ° JUTÇ° QPMJDZÇ° POÇ° DPSQPSBUFÇ° HPWFSOBODFÇ° CZÇ° FNQIBTJ[JOHÇ° POÇ° UIFÇ° DPOUSPMÇ° BOEÇ° JOUFSOBMÇ° BVEJUÇ°TZTUFN Ç°BOEÇ°DPSQPSBUFÇ°HPWFSOBODFÇ°PGÇ°.BOBHFNFOUÇ°UPÇ°FGĹłDJFOUMZÇ°GPMMPXJOHÇ°JUTÇ°QPMJDZ Ç°5IJTÇ°JTÇ°GPSÇ°MPOHÇ°UFSNÇ° CFOFĹłUTÇ°PGÇ°TIBSFIPMEFST Ç°JODMVEJOHÇ°USBOTQBSFODZÇ°POÇ°CVTJOFTTÇ°PQFSBUJPOT Ç°JOGPSNBUJPOÇ°EJTDMPTVSF Ç°BOEÇ°XJUIÇ°QSPQFSÇ° risk management as well as the Social and Environment Responsibility for sustaining development.

In 2013, the Company has been continuously granted the Excellent CG Scoring from Thai Listed Companies Good Corporate Governance Survey Year 2013.

4VNNBSJ[BUJPOÇ°POÇ°DPSQPSBUFÇ°HPWFSOBODFÇ°QSBDUJDFTÇ°JOÇ° Ç°JTÇ°BTÇ°GPMMPXT

Good Corporate Governance Policy

The Company’s Board of Directors stipulates policy on good corporate governance in a written format, and considers reviewing the good corporate governance policy and code of conduct manual for the Company Group.

Follow up on evaluation of policy compliance is set to at least once a year. The Company publishes manuals to Directors and employees for references and practices and announced in the Company’s intranet.

The Company’s Board of Directors Meeting No. 1/2013 on February 26, 2013 reconsidered, improved, and had its resolution to approve the good corporate governance policy and code of conduct manual for the Company Group, and followed up on evaluation of policy compliance.

Moreover, the Company has comply with the good corporate governance policy for listed companies in the Stock Exchange of Thailand as states in the 5 following guidelines: ĝǰ 4IBSFIPMEFSǰSJHIUT ĝǰ &RVBMǰ3JHIUǰUPǰ4IBSFIPMEFST ĝǰ 3JHIUTǰPGǰ4UBLFIPMEFST ĝǰ *OGPSNBUJPOǰ%JTDMPTVSFǰBOEǰ5SBOTQBSFODZ ĝǰ 3FTQPOTJCJMJUJFTǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰBOEǰ4VC $PNNJUUFFT

Shareholder Rights

The Company stresses the importance of respecting the shareholders’ right by following regulations as stipulated by law. In 2013, the Company had ordinary shareholders’ meeting on April 19, 2013. All Directors attended the meetings (list of the Company’s Board of Directors attendances could be checked at the minutes of the shareholders’ meeting).

5IFǰ$PNQBOZǰIBTǰQPMJDZǰPOǰFRVBMǰUSFBUNFOUǰPGǰTIBSFIPMEFSTǰCZǰSFBMJ[JOHǰPOǰUIFǰJNQPSUBODFǰPGǰTIBSFIPMEFSTĴǰ SJHIUǰPOǰTVGųDJFOUǰBOEǰUJNFMZǰJOGPSNBUJPOǰEJTDMPTVSF ǰ$PODFSOJOHǰTIBSFIPMEFSTĴǰNFFUJOH ǰUIFǰ$PNQBOZǰXJMMǰJTTVFǰ notice of meeting which includes details on different meeting’s agendas at least 7 days prior to the meeting date as stipulated by law.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

In 2013, Thailand Securities Depository Co., Ltd., which was the Company’s registrar, issued notice of meeting to shareholders at least 7 days in advanced, or 14 days as stipulated by law.

In 2013, the Company had issued notice of meeting which included details on different meeting’s agendas prior to the meeting date as stipulated by law, and each agenda contained principles, and reasons and suggestions of the Board of Directors. Moreover, the Company also published shareholders’ notice of meeting, and documents for the meeting in Thai and English language at the Company’s website on http://www.rs.co.th/corporate/th/ meeting.htm, and http://www.rs.co.th/corporate/eng/meeting.htm , at least 30 days before the meeting date and the Annual Report was posted in the website at least 7 days before the meeting date, as to facilitate rapid access for shareholders. Minutes of the meetings in 2013 were posted in the website 14 days afterwards. Prior to the TUBSUǰPGǰNFFUJOH ǰ$IBJSNBOǰPGǰUIFǰNFFUJOHǰIBEǰBVUIPSJ[FEǰUIFǰ$PNQBOZĴTǰ4FDSFUBSZǰUPǰFYQMBJOǰWPUJOHǰQSPDFEVSFǰ to the meeting, and during the meeting, the Chairman gave equal opportunity to shareholders in asking additional questions, and making suggestions prior to vote casting in each agenda. Support was also given in using voting paper in case of important agenda for transparency and accountability. Minute of the meeting was written correctly BOEǰDPNQMFUFMZǰXJUIJOǰUIFǰTQFDJųDǰUJNFGSBNFǰBTǰTUJQVMBUFEǰCZǰMBX ǰBOEǰIBEǰHPPEǰųMJOHǰTZTUFNǰGPSǰTIBSFIPMEFSTĴǰ checking.

In 2013, the Company gave shareholders’ right much more than stipulated by law such as publishing important and updated information through its websites, and not curtailing the shareholders’ right on the Company’s information that had to be disclosed by regulations. Concerning the meeting, no additional meeting agenda, or changing PGǰ JNQPSUBOUǰ JOGPSNBUJPOǰ XPVMEǰ CFǰ DPOEVDUFEǰ XJUIPVUǰ QSJPSǰ OPUJųDBUJPOǰ UPǰ TIBSFIPMEFST ǰ JODMVEJOHǰ BEEJUJPOBMǰ important information would not be distributed abruptly in the meeting, and not limiting shareholders’ right to come in late for the meeting. During the meeting, the Chairman opened equal opportunity to shareholders to ask questions, giving ideas, and making suggestions on operating results of the Company. Moreover, shareholders were given opportunity to send in their questions in advanced of the meeting date through the Company’s websites, or by mail to the Board of Directors. Thus, rights given to shareholders, and supporting shareholders to exercise their rights were in accordance with good corporate governance policy.

Equal Right to Shareholders

For shareholders who cannot attend the meeting, the Company proposes proxies to be given to the Independent Director, who is Chairman of the Audit Committee, to vote on their behalves in the meeting. In the 2013 shareholders meeting, there were 113 shareholders who gave proxy to Chairman of the Audit Committee .

On September 26, 2013, the Company published information through its websites for minority shareholders to propose agenda for the ordinary shareholders’ meeting. This included clear cut regulations in advanced for consideration on additional agenda for minority shareholders to make proposal. The Company also regulated procedures for minority shareholders to propose person’s names for consideration as Director, and including BTTJTUJOHǰJOGPSNBUJPOǰPOǰRVBMJųDBUJPOT ǰBOEǰBHSFFNFOUǰPGǰUIFǰQSPQPTFEǰQFSTPO ǰ)PXFWFS ǰOPǰTIBSFIPMEFSǰQSPQPTFEǰ on new agenda, and person’s name for Director.

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The Company has established the measure in a written statement to prevent directors, executives, staff members and employees from abusing insider information in the interests of their own or their related parties. By this measure, the Company’s directors, executives, staff members and employees are required to report a transaction that may DBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTUǰCFUXFFOǰUIFǰPSHBOJ[BUJPOǰBOEǰUIFNǰPSǰUIFJSǰSFMBUFEǰQBSUJFTǰWJBǰUIFǰEFTJHOBUFEǰMBXǰPGųDFǰ UPǰTDSFFOǰBOEǰGPSXBSEǰTVDIǰSFQPSUǰDPNQMFUFEǰXJUIǰJUTǰDPNNFOUTǰUPǰUIFǰ#PBSE ǰBOEǰUIFǰ#PBSEǰJTǰGVMMZǰBVUIPSJ[FEǰUPǰ NBLFǰBǰEFDJTJPOǰPOǰBOZǰUSBOTBDUJPO ǰXIJDIǰNBZǰDBVTFǰBǰDPOŴJDUǰPGǰJOUFSFTU ǰGPSǰUIFǰ$PNQBOZĴTǰPWFSBMMǰCFOFųU ǰǰǰǰǰ5IFǰ Company’s directors and/or executives with their interests in any transactions shall be banned from participating in a decision making process on those transactions, as detailed in the topic of insider information protection; moreover, related party transactions shall be made in accordance with relevant requirements established by Stock Exchange of Thailand, as detailed in the topic of precautionary measures or procedures for the approval of related party transactions. The certain policy has been implemented since the year 2008 for banning directors and top FYFDVUJWFT ǰGSPNǰCVZJOHǰBOEǰTFMMJOHǰUIFJSǰTIBSFTǰJOǰUIFǰ$PNQBOZǰUISFFǰXFFLTǰCFGPSFǰUIFǰQVCMJDBUJPOǰPGǰųOBODJBMǰ statements and two days after that.

The Company has regulation in prohibiting the using of opportunity or information by Director, Executive, or FNQMPZFFǰGPSǰUIFJSǰPXOǰCFOFųUT ǰPSǰDPOEVDUJOHǰCVTJOFTTǰDPNQFUJUJPOǰXJUIǰUIFǰ$PNQBOZ ǰPSǰXJUIǰSFMBUFEǰCVTJOFTT ǰ This includes using of inside information for the Company’s stock trading. All regulations have been stated in the code of conduct manual, and discloses in the topic of using of internal information.

3FNBSL Ç° Ç° Ç° NFBOTÇ° &YFDVUJWFÇ° BTÇ° QFSÇ° EFĹłOJUJPOÇ° PGÇ° UIFÇ° 4FDVSJUJFTÇ° BOEÇ° &YDIBOHFÇ° $PNNJTTJPOÇ° XIPÇ° JTÇ° SFTQPOTJCMFÇ° GPSÇ° DIBOHFTÇ° JOÇ° shareholding as stipulated by law.

Rights of Stakeholders

5IFǰ$PNQBOZǰSFDPHOJ[FTǰUIFǰJNQPSUBODFǰPGǰSJHIUTǰGPSǰBMMǰHSPVQTǰPGǰTUBLFIPMEFSTǰXIFUIFSǰGSPNǰJOUFSOBMǰTUBLFIPMEFSTǰ such as employees, the Company’s Management, and its subsidiaries, or external stakeholders such as competitors, DSFEJUPST ǰ(PWFSONFOUǰBHFODJFT ǰBOEǰPUIFSǰSFMBUFEǰQBSUJFT ǰ5IFǰ$PNQBOZǰSFBMJ[FTǰUIFǰTVQQPSUJOHǰQSFTTVSFǰGSPNǰ TUBLFIPMEFSTǰFTQFDJBMMZǰGSPNǰDPNNVOJUJFTǰBOEǰQVCMJD ǰJOǰXIJDIǰJUǰBMXBZTǰHJWFTǰTJHOJųDBODFǰUPǰUIFǰDBVTFTǰ FYBNQMFǰ can be seen from the Role and Social Responsibility and Human Resources Development Policy). Regulations and procedures are in written format, including rules on disciplinary punishment, so that there will be guideline procedures for related persons i.e. Directors, Management and employees of RS Group etc. to follow when performing duties for the Company with honesty and ethics towards the Company and groups of stakeholders.

Details in the Code of Conduct manual which covers business and employee’s code of conduct are as follows:-

Responsibilities toward social and environment

5IFÇ°$PNQBOZÇ°IBTÇ°UIFÇ°QPMJDZÇ°UPÇ°DPOEVDUÇ°JUTÇ°CVTJOFTTÇ°GPSÇ°UIFÇ°CFOFĹłUTÇ°PGÇ°UIFÇ°FDPOPNZ Ç°TPDJFUZ Ç°BOEÇ°FOWJSPONFOUÇ° by considering its duties and responsibilities towards the nation, society and environment. Businesses must be operated and controlled completely under the laws and regulations, as well as determinations to press on developing trends for social quality and environment internally or cooperation with Government agencies and communities. Responsibilities toward social and environment must be whole heartedly and consistently promoted UPÇ°BMMÇ°MFWFMTÇ°PGÇ°FNQMPZFFTÇ°POÇ°CFDPNJOHÇ°HPPEÇ°DJUJ[FOTÇ°XIPÇ°NBLFÇ°CFOFĹłDJBMÇ°DPOUSJCVUJPOTÇ°UPXBSEÇ°DPNNVOJUJFTÇ°BOEÇ°

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

societies. Employees must also be supported to jointly participate in constantly creating activities for communities and societies in order to create good corporate culture in the future. These have to be reviewed, evaluated, and followed up consistently on progress of the company’s operations to ensure that policies on social and environment have been executed as planned (example can be seen from the Role and Social Responsibility and Human Resources Development Policy).

Customer

The Company is determined to distribute quality products and provide quality services to its customers, as well as having the service units to take care, explain all enquiries, and recommend solutions on problems to customers.

Shareholders

5IFÇ°$PNQBOZÇ°JTÇ°SVOÇ°XJUIÇ°BÇ°HPPEÇ°BOEÇ°FGĹłDJFOUÇ°FYQFSUJTF Ç°5IFÇ°DVSSFOUÇ°BOEÇ°GVUVSFÇ°SJTLÇ°JTÇ°DBSFGVMMZÇ°BTTFTTFEÇ°GPSÇ°UIFÇ° CFOFĹłUÇ°PGÇ°TIBSFIPMEFST Ç°BOEÇ°DPOUSPMMFEÇ°UPÇ°CFÇ°DFSUBJOÇ°UIBUÇ°UIFÇ°PQFSBUJPOBMÇ°SFTVMUTÇ°BOEÇ°ĹłOBODJBMÇ°TJUVBUJPOTÇ°PGÇ°UIFÇ° company as well as information to shareholders are completely reported.

Employee

The Company considers employees its precious assets and acknowledges the value of employees. The appropriate welfare and remuneration are arranged in line with the knowledge, ability, responsibility and performance of each FNQMPZFF ǰ34ǰHSPVQǰBMTPǰSFBMJ[FTǰUIFǰJNQPSUBODFǰJOǰIFBMUIDBSF ǰTBGFUZ ǰBOEǰXPSLJOHǰFOWJSPONFOUǰBTǰTBGFǰQSFDBVUJPOǰ against life and property of its employees, and follows on the labor laws’ regulations. Hence, the Company has arranged for health check, life and health insurances for employees, and consistently checks safety in the work place too.

The Company supports knowledge training for its employees, Directors and executives. (Examples are under topics Social Role and Responsibilities, and Human Resources Development Policy)

Trading Partner and Creditor

The Company adheres to honesty and justice towards its trading partners by taking into consideration for the best CFOFĹłUTÇ°UPÇ°UIFÇ°$PNQBOZ Ç°BOEÇ°CBTFTÇ°POÇ°KVTUJĹłFEÇ°SFNVOFSBUJPOTÇ°POÇ°CPUIÇ°TJEFT Ç°BOEÇ°BWPJETÇ°CJBTÇ°PSÇ°BOZÇ°DJSDVNTUBODFTÇ° UIBUÇ° HJWFÇ° SJTFÇ° UPÇ° UIFÇ° DPOĹ´JDUÇ° PGÇ° JOUFSFTUTÇ° BOEÇ° VQIPMETÇ° BOEÇ° DPNQMJFTÇ° XJUIÇ° DPOUSBDUT Ç° UFSNTÇ° PGÇ° BHSFFNFOU Ç° BOEÇ° obligations towards trading partners and creditors. This also includes anti-corruption and anti-bribery payment to PCUBJOÇ°CFOFĹłUÇ°GPSÇ°UIFÇ°$PNQBOZÄ´TÇ°CVTJOFTT Ç°Ç°

Competitor

The Company supports free and fair trade competition as well as treating competitors professionally.

Virtue

The Company is engrossed in doing the rightful things and performing its duties with honesty and straightforwardness in accordance with legislations and regulations. This conduct is applied to any activities and decision-making. The DPNQBOZÇ°PQFSBUFTÇ°JUTÇ°CVTJOFTTÇ°XJUIÇ°IPOFTUZÇ°BOEÇ°UBLFTÇ°JOUPÇ°BDDPVOUÇ°UIFÇ°JOĹ´VFODJOHÇ°SJTLT Ç°

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Equality and Human Rights for All Parties Concerned

The Company neither hinders or withholds the privileges from, nor discriminates against any persons who are different in races, nationalities, religious, genders, age, or education, including non-involvement on any human rights infringement.

Copyright

The Company has the policy on non-violation of any copyright.

The Company’s Board of Directors reviews and makes improvement on Code of Conduct manual of RS Group at least once a year. In 2013, the Company’s Board of Directors meeting No. 1/2013, has reviewed, improved and approved RS Group’s Code of Conduct manual, and publishes in the Company’s website. It includes information on new employee’s training for all employees’ acknowledgement, and controlling process for strict compliance on the Code of Conduct.

The Company has had the policy that directors, executives and staff members at all levels are required to strictly observe and follow the best practices described in the Group’s ethics handbook. In the past year, the $PNQBOZǰBOEǰUIFǰTVCTJEJBSJFTǰIBEǰOPǰMFHBMǰEJTQVUFǰUIBUǰTJHOJųDBOUMZǰBGGFDUFEǰUIFǰ$PNQBOZĴTǰCVTJOFTTǰPSǰQPTFEǰ negative effects on the Group’s assets of which its overall value, as at 31 December 2013, was higher than 5% of shareholders’ equity. The Company and the subsidiaries had no legal dispute arisen from an out-of-the-ordinary course of business of the Group either.

The Company has anticipated in sharing the development mechanism with stakeholders in strengthening operating results of the Company. This is to build business security with information transparency, listening to comments, DPNQMBJOUT ǰPSǰTVHHFTUJPOT ǰFUD ǰ"DUJPOǰUIBUǰNBZǰMFBEǰUPǰGSBVEǰPSǰTVTQFDUFEǰCFIBWJPSǰXJUIJOǰUIFǰPSHBOJ[BUJPOǰFJUIFSǰ from employee or from stakeholder can be reported directly to the Management, Internal Audit unit, Investor Relation unit, Company Secretary or Audit Committee as to pass to the Board of Directors through website http:// www.rs.co.th/investor.html or through telephone numbers 0-2511-0911 and 0-2511-0555 ext. 1503 or to the stated units above. All information will be collected and checked through the Company’s stipulated process, and will be reported to the Board of Directors. $PNQMBJOUǰDPODFSOJOHǰųOBODJBMǰBOEǰBDDPVOUJOHǰSFQPSUT ǰJOUFSOBMǰDPOUSPM ǰSJTLǰNBOBHFNFOU ǰDPNQMJBODFǰXJUIǰMBXǰ BOEǰDPEFǰPGǰDPOEVDUǰDBOǰCFǰEPOFǰUISPVHIǰUIFǰ$PNQBOZĴTǰTFDSFUBSZǰXIPǰSFDFJWFTǰBOEǰTVNNBSJ[FTǰBMMǰUPQJDT ǰBOEǰ quarterly submits to the Audit Committee, and Board of Directors. The Company gives importance to the secrecy PGǰJOGPSNBUJPOǰSFDFJWFEǰJOǰPSEFSǰUPǰCVJMEǰDPOųEFODFǰUPǰTFOEFS ǰBOEǰDPNQMBJOUǰXJMMǰPOMZǰCFǰLOPXOǰUPǰBTTJHOFEǰBOEǰ related persons.

Information Disclosure and Transparency

5IFÇ°$PNQBOZÇ°HJWFTÇ°UIFÇ°JNQPSUBODFÇ°UPÇ°FGĹłDJFOUÇ°JOUFSOBMÇ°DPOUSPMÇ°TZTUFNÇ°POÇ°UIFÇ°.BOBHFNFOUÇ°BOEÇ°PQFSBUJPOBMÇ°MFWFMT Ç° CZÇ°DMFBSMZÇ°TUJQVMBUFEÇ°UIFÇ°.BOBHFNFOUÄ´TÇ°CVTJOFTTÇ°BVUIPSJ[BUJPOT Ç°"TTFUTÄ´Ç°VTBHFTÇ°BSFÇ°DPOUSPMMFE Ç°BOEÇ°SFTQPOTJCJMJUJFTÇ° of operator, controller, and evaluator are separated from each other to create suitable check and balance system. .PSFPWFS Ç°UIFSFÇ°JTÇ°JOUFSOBMÇ°DPOUSPMÇ°POÇ°UIFÇ°ĹłOBODJBMÇ°TZTUFNÇ°XJUIÇ°ĹłOBODJBMÇ°SFQPSUÇ°TZTUFNÇ°SFQPSUJOHÇ°EJSFDUMZÇ°UPÇ°UIFÇ° responsible management unit.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

The Company’s internal control unit reports directly to the Audit Committee to be certain that the main operations BOEǰJNQPSUBOUǰųOBODJBMǰBDUJWJUJFTǰQSPDFFEǰFGųDJFOUMZǰXJUIJOǰUIFǰEJSFDUFEǰHVJEFMJOFT ǰ5IFǰ$PNQBOZǰIBTǰJUTǰQPMJDZǰPOǰ Compliance Control in correspondence with the concerned law and related regulations.

Sub - Committees

The Company’s Board of Directors appoints the Sub - Committees to make details screening by regulating their responsibilities and scope of duties within each committee.

Most members of the Sub - Committees are Independent Directors except the Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee and the Chairman of the Board will not hold positions as member in all committees. Moreover, it also regulates Independent Directors as Chairman of each committee with exception in the Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee. At present, the Company has 6 Sub - Committees of the Audit Committee, Nomination and Remuneration Committee, Executive Committee, Risk Management Committee, Good Corporate Governance Committee and Human Development Committee.

Details concerning the member’ names, duties, and responsibilities are in topic “Shareholding Structure and Management�.

Duties of the Board of Directors and Sub-Committees

The Company’s Board of Directors appoints sub-committees in order to assist on corporate governance as follows:ĝǰǰǰ"VEJUÇ°$PNNJUUFFÇ°IBTÇ°EVSBUJPOÇ°PGÇ° Ç°ZFBST Ç°BOEÇ°DPOTJTUTÇ°PGÇ° Ç°*OEFQFOEFOUÇ°%JSFDUPST Ç°/BNFTÇ°BOEÇ°EVUJFTÇ°PGÇ°UIFÇ°"VEJUÇ° Committee are listed in topic “Shareholding Structure and Managementâ€?.

The Company’s Board of Directors is in agreement and appoints Mr. Phisit Dachanabhirom, the Independent %JSFDUPS ǰXIPǰIBTǰWBTUǰLOPXMFEHFǰBOEǰFYQFSJFODFTǰJOǰųOBODJBMǰBOEǰBDDPVOUJOHǰųFME ǰUPǰCFDPNFǰ$IBJSNBOǰPGǰUIFǰ Audit Committee.

In 2013, the Audit Committee had 4 meetings in which all members attended all meetings, and consistently reported their operating results to the Company’s Board of Directors. There was one meeting that the Audit Committee met privately with the external auditor without the management team being present.

ĝǰǰǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFF

The Company’s Board of Directors meeting No. 3/2007, on February 26, 2007, has appointed the Nomination and 3FNVOFSBUJPOÇ°$PNNJUUFF Ç°JUTÇ°TDPQFÇ°PGÇ°BVUIPSJUZ Ç°BOEÇ°SFNVOFSBUJPO Ç°5IFÇ°DPNNJUUFFÇ°DPOTJTUTÇ°PGÇ° Ç°RVBMJĹłFEÇ°QFSTPOTÇ° which has 3 Independent Directors in which one of them is the Chairman of the Nomination and Remuneration Committee, the committee has 3 years duration (details in the “Shareholding Structure and Managementâ€?) *In 2013, the Nomination and Remuneration Committee consisted of 3 members in which all of them were Independent Directors.

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In 2012, the committee had 2 meetings in which all members attended all meetings. The committee consistently reported their operating results to the Company’s Board of Directors.

Details of important performances in 2012 could be summarized as follows:Ç° Ç°Ç°$POTJEFSFEÇ°UIFÇ°OPNJOBUJPOÇ°BOEÇ°TFMFDUJPOÇ°PGÇ°RVBMJĹłFEÇ°BOEÇ°TVJUBCMFÇ°QFSTPOÇ°BTÇ°SFQMBDFNFOUÇ°GPSÇ°#PBSEÇ°PGÇ° Directors retired member.

2. Considered, reviewed and approved the charter of the Nomination and Remuneration Committee.

3. Considered and reviewed the appropriateness of the pattern and criteria of the remuneration.

4. Reviewed the annual Directors’ remuneration. ǰ ǰǰ$POTJEFSFEǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰFWBMVBUJPOǰDSJUFSJB 6. Evaluate the performance of the Nomination and Remuneration Committee in 2013 7. Reported the performances of the Nomination and Remuneration Committee to the Board of Directors on regular basis.

The Nomination and Remuneration Committee commented that the stated items were suitable to the utmost MPOH UFSNǰCFOFųUǰGPSǰUIFǰ$PNQBOZ ǰ4IBSFIPMEFSTǰBOEǰ4UBLFIPMEFST ĝǰǰǰ5IFǰ&YFDVUJWFǰ$PNNJUUFFǰDPOTJTUTǰPGǰ ǰRVBMJųFEǰQFSTPOT ǰBOEǰUIFJSǰOBNFTǰBSFǰMJTUFEǰJOǰUIFǰĜ4IBSFIPMEJOHǰ Structure and Management� topic.

In 2012, the Executive Committee had total 12 meetings.

ĝǰǰǰ3JTLǰ.BOBHFNFOUǰ$PNNJUUFF

5IFÇ°$PNQBOZÄ´TÇ°#PBSEÇ°PGÇ°%JSFDUPSTÇ°NFFUJOHÇ°/P Ç° Ç°POÇ°"VHVTUÇ° Ç° Ç°IBEÇ°UIFÇ°SFTPMVUJPOÇ°UPÇ°BQQPJOU Ç°BVUIPSJ[FÇ° the scope of responsibilities and consider remuneration of the Risk Management Committee. The Committee DPOTJTUFEÇ°PGÇ° Ç°RVBMJĹłFEÇ°QFSTPOTÇ°XJUIÇ° Ç°ZFBSTÇ°EVSBUJPO Ç° %FUBJMTÇ°BSFÇ°VOEFSÇ°UIFÇ°4IBSFIPMEJOHÇ°4USVDUVSFÇ°BOEÇ°.BOBHFNFOU

In 2012, the Company’s Risk Management Committee had 1 meeting which was to plan, reviewing the system, or FWBMVBUFǰFGųDJFODZǰPGǰUIFǰSJTLǰNBOBHFNFOU

ĝǰǰǰ(PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFF

The Company’s Board of Directors meeting No. 1/2011 on February 23, 2011 had the resolution to appoint, BVUIPSJ[FǰUIFǰTDPQFǰPGǰSFTQPOTJCJMJUJFTǰBOEǰDPOTJEFSǰSFNVOFSBUJPOǰPGǰUIFǰ(PPEǰ$PSQPSBUFǰ(PWFSOBODFǰ$PNNJUUFF ǰ 5IFǰ$PNNJUUFFǰDPOTJTUFEǰPGǰ ǰRVBMJųFEǰQFSTPOTǰXJUIǰ ǰZFBSTǰEVSBUJPO ǰ %FUBJMTǰBSFǰVOEFSǰUIFǰ4IBSFIPMEJOHǰ4USVDUVSFǰ and Management).

In February 2013, Good Corporate Governance Committee has reviewed and improved the Good Corporate Governance Policy and Code of Conduct. The Committee also followed up the compliance of such policies.

ĝǰǰǰ5IFÇ°)VNBOÇ°%FWFMPQNFOUÇ°$PNNJUUFFÇ°DPOTJTUTÇ°PGÇ° Ç°RVBMJĹłFEÇ°QFSTPOT Ç°BOEÇ°UIFJSÇ°OBNFTÇ°BOEÇ°SFTQPOTJCJMJUJFTÇ° are listed in the “Shareholding Structure and Managementâ€? topic.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Company Secretary

5IFǰ #PBSEǰ PGǰ %JSFDUPSTǰ IBTǰ BQQPJOUFEǰ UIFǰ $IJFGǰ 0QFSBUJOHǰ 0GųDFSǰ UPǰ CFǰ UIFǰ $PNQBOZǰ 4FDSFUBSZ ǰ 5IFǰ QSFTFOUǰ Company Secretary is Mrs. Pornpan Techarungchaikul. The Company Secretary duty is to ensure that the Company complies with the Good Corporate Governance of the Stock Exchange of Thailand. The major role and duty of the Company Secretary are as following:Ļǰǰǰ"EWJDFǰUIFǰMFHBM ǰBDDPVOUJOHǰBOEǰUBYǰJTTVFǰBOEǰOFDFTTBSZǰSFHVMBUJPOTǰUPǰUIFǰ#PBSEǰPGǰ%JSFDUPST Ļǰǰǰ0WFSTFFǰUIFǰ#PBSEǰPGǰ%JSFDUPSTĴǰBDUJWJUJFT Ļǰǰǰ$PPSEJOBUFǰUIFǰDPODFSOFEǰQBSUZǰBTǰUPǰFOTVSFǰUIFǰJNQMFNFOUBUJPOǰPGǰUIFǰSFTPMVUJPOTǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPST Ļǰǰǰ'VODUJPOJOHǰJOWFTUPSǰSFMBUJPO ǰDPPSEJOBUFǰBOEǰDPNNVOJDBUFǰSFHVMBUPSTǰTVDIǰBTǰUIFǰ4FDVSJUJFTǰBOEǰ&YDIBOHFǰ Commission and the Stock Exchange of Thailand etc.

The Company secretary has knowledge in both the accounting and legal aspect, however, the Company also promotes people who support the work of the Company secretary and the Company’s Board of Directors to BUUFOEǰUIFǰĶ$PNQBOZǰ4FDSFUBSZǰ1SPHSBNķǰ $41 ǰPGǰUIFǰ5IBJǰ*OTUJUVUFǰPGǰ%JSFDUPSTǰ *0% ǰ.PSFPWFS ǰUIFǰMFHBMǰPGųDFǰ has been assigned by the Company to help with the works of the Board of Directors to be in accordance with rules, SFHVMBUJPOT ǰPSǰMBXǰCVUǰIBTǰOPUǰCFFOǰFTUBCMJTIFEǰBTǰBǰTQFDJųDǰTVQFSWJTPSZǰPQFSBUJPOBMǰVOJU

Director Meeting

The Director meetings are arranged at least quarterly and extraordinary meetings in between as deemed necessary.

All meetings have apparently set-out agenda and planned meeting date and are intended to consistently monitor company’s performance. In case that the Company does not have a monthly meeting, the Company has the policy to send the monthly operational report to the Board of Directors, so that the Board of Directors can supervise, and control management’s operations consistently and effectively. Invitation, agenda and information hand-outs BSFǰEVMZǰEJTUSJCVUFEǰ ǰEBZTǰQSJPSǰUPǰUIFǰNFFUJOHǰTPǰEJSFDUPSTǰIBWFǰBǰDIBODFǰUPǰGBNJMJBSJ[FǰUIFNTFMWFTǰUPǰUIFǰJTTVFT $IBJSNBOǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰBOEǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰNBLFǰEFDJTJPOǰPOǰBHFOEBTǰGPSǰUIFǰ#PBSEǰPGǰ %JSFDUPSTĴǰNFFUJOHǰXJUIǰFNQIBTJ[JOHǰUIBUǰJNQPSUBOUǰTVCKFDUTǰIBWFǰUPǰCFǰJOǰUIFǰNFFUJOHǰBHFOEBT ǰ%JSFDUPSTǰDBOǰ GSFFMZǰTVCNJUǰBHFOEBǰBOEǰUIFǰ#PBSEǰPGǰ%JSFDUPSTǰDBOǰBDDFTTǰOFDFTTBSZǰJOGPSNBUJPOǰGSPNǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFS *OEFQFOEFOUǰ%JSFDUPST ǰ"VEJUǰ$PNNJUUFFǰ UIFǰEFųOJUJPOǰBOEǰRVBMJųDBUJPOǰTIPXOǰJOǰ.BOBHFNFOUǰ4FDUJPO ǰIBWFǰ attended all meetings. In 2013, there have been 4 meetings at the Company premises. Every director attends all meetings except Mr. Danaisidh Peslapunt who miss 1 meeting due to illness. *GǰBOZǰEJSFDUPSǰIBTǰTJHOJųDBOUǰDPOŴJDUǰPGǰJOUFSFTUǰJOǰBOZǰBHFOEB ǰTVDIǰEJSFDUPSǰTIBMMǰOPUǰBUUFOEǰUIFǰNFFUJOHǰEVSJOHǰ the consideration of that agenda.

The Company’s Board of Directors has its policy in allowing the non-executive Directors to conduct their own meeting as deem necessary. This is to debate all issues concerning the Management without their present, and the $IJFGǰ&YFDVUJWFǰ0GųDFSǰXJMMǰCFǰJOGPSNFEǰPGǰUIFǰNFFUJOHǰSFTVMU

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Self - Evaluation on the Performance of the Board of Directors

The Company’s Board of Directors arranges for its self - evaluation annually by using the Company’s self - evaluation form. The Board of Directors will individually and jointly consider their performances for their joint consideration in PSEFSǰUPǰJNQSPWFǰGPSǰNPSFǰFGųDJFOUǰPQFSBUJPOT ǰ 4FMGǰĹǰFWBMVBUJPOǰFMFNFOUTǰDPOTJTUǰPGǰUIFǰTUSVDUVSFǰBOEǰRVBMJųDBUJPO ǰSPMFT ǰEVUJFTǰBOEǰSFTQPOTJCJMJUJFT ǰNFFUJOH ǰBOEǰ duties of the Board of Directors, relationship with management, self - development of the Board, and development of Executives.

Moreover, the Nomination and Remuneration Committee will supply suggestions on regulations for the evaluation POǰQFSGPSNBODFǰPGǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰQSPQPTFǰGPSǰUIFǰBQQSPWBMǰPGǰUIFǰ#PBSEǰPGǰ%JSFDUPST ǰ3FTVMUTǰPGǰUIFǰ QFSGPSNBODFǰXJMMǰCFǰFWBMVBUFEǰCZǰUIFǰFWBMVBUJPOǰGPSNǰTQFDJųFEǰCZǰUIFǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFFǰ and to be evaluated by the Company’s Board of Directors which only consists of Independent Directors for further improvement.

The Company’s Board of Directors arranged for its self-evaluation every year. On February 26, 2013 in the Company’s Board of Directors’ meeting No. 1/2013, had made annual consideration on self-evaluation of the Company’s Board of Directors of 2013, so that the Company’s Board of Directors could jointly consider the performances, and QSPCMFNTǰGPSǰGVSUIFSǰJNQSPWFNFOU ǰ3FTVMUTǰPOǰQFSGPSNBODFǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰGPSǰUIFǰZFBSǰ ǰIBEǰ been evaluated by the Company’s Board of Directors which consisted of only Independent Directors for further consideration and improvement.

Moreover, the Board of Directors has arranged for performance evaluations for other committees such as the Audit Committee, and the Nomination and Remuneration Committee.

Remuneration

The Company has clearly and transparently stipulated policy on remuneration for Directors and Executives. During the ordinary shareholders’ meeting No. 1/2003 and the Company’s Board of Directors’ meeting No. 5/2003, remuneration for Directors was approved to be within the similar level of the same industry which was high enough UPÇ°BUUSBDUÇ°BOEÇ°QSPUFDUÇ°UIFÇ°RVBMJĹłFEÇ°%JSFDUPSTÇ°BOEÇ°CFÇ°JOÇ°BDDPSEBODFÇ°XJUIÇ°UIFÇ°$PNQBOZÄ´TÇ°PQFSBUJOHÇ°SFTVMUT Ç°5IFÇ° Executives remuneration would be in accordance with the Company’s operating results, and individual Executives QFSGPSNBODF Ç°'PSÇ°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÄ´TÇ°QFSGPSNBODFÇ°FWBMVBUJPO Ç°UIFÇ°/PNJOBUJPOÇ°BOEÇ°3FNVOFSBUJPOÇ°$PNNJUUFFÇ° TVQQMJFEÇ° JOQVUTÇ° POÇ° SFHVMBUJPOTÇ° GPSÇ° UIFÇ° FWBMVBUJPOÇ° POÇ° QFSGPSNBODFÇ° PGÇ° $IJFGÇ° &YFDVUJWFÇ° 0GĹłDFSÇ° BOEÇ° QSPQPTFÇ° GPSÇ° the approval of the Board of Directors. Results on the performance were evaluated by the Company’s Board of Directors which only consisted of Independent Directors. (Details on remuneration for Directors and Executives were shown in “Shareholding Structure of the Company).

Directors and Executives’ Development

The Company’s Board of Directors has the policy on assigning the present Director to introduce new Director to UIFǰ$PNQBOZ ǰBOEǰMFDUVSJOHǰPOǰUIFǰTVNNBSJ[BUJPOǰPGǰUIFǰ$PNQBOZĴTǰCVTJOFTTǰQMBO ǰPQFSBUJOHǰSFTVMUT ǰTUSBUFHZ ǰ competitive situations, vision, corporate culture, corporate governance, business ethics and other details concerning the Company’s operation etc.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

The Company’s Board of Directors has the policy to create and develop new knowledge for Directors and Executives by encouraging them to attend seminars and meetings which provide useful topics that have been arranged by the 5IBJǰ*OTUJUVUFǰPGǰ%JSFDUPST ǰBOEǰPUIFSǰSFMBUFEǰPSHBOJ[BUJPOTǰJOǰPSEFSǰUPǰTVQQPSUǰFGųDJFOUǰPQFSBUJPOT ǰXJUIǰBMMǰDPTUTǰ UPǰCFǰųOBODJBMMZǰTVQQPSUFEǰCZǰUIFǰ$PNQBOZǰ EFUBJMTǰXFSFǰTIPXOǰJOǰĜ%FTDSJQUJPOǰPGǰ.BOBHFNFOUǰ5FBNǰBOEǰPUIFSǰ persons overseeing the Company�).

4VDDFTTJPOÇ°QMBOÇ°GPSÇ°UIFÇ°$IJFGÇ°&YFDVUJWFÇ°0GĹłDFSÇ°BOEÇ°IJHIÇ°MFWFMÇ°&YFDVUJWFT

The Company’s Board of Directors supports the arrangement of succession plan that will assist in smooth operation of the Company. Moreover, the Board of Directors also makes preparation for the executive development program GPSǰUIFǰTVDDFTTJPOǰQMBOǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFTǰ ǰJOǰDBTFǰUIBUǰUIFZǰDBOOPUǰQFSGPSNǰ their duties. This is to reduce risks from dis-continuation in corporate management with the following procedures: 1. The Executive Board and Human Development Committee have to consider and select high potential Executives for further development and preparation.

2. The Human Development Committee is to develop the assigned group by preparing for the high level development plan for high level Executives.

3. The Executive Board and Human Development Committee will together make the appropriate selection on DBOEJEBUFTǰGPSǰUIFǰQPTJUJPOTǰPGǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFSǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFT ǰ'PSǰUIFǰTFMFDUFEǰQPTJUJPOǰPGǰ UIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFS ǰUIFǰTFMFDUJPOǰXJMMǰQSFDFEFǰUPǰUIFǰ/PNJOBUJPOǰBOEǰ3FNVOFSBUJPOǰ$PNNJUUFF ǰBOEǰUIFǰ Company’s Board of Directors for consideration.

4. The Nomination and Remuneration Committee will make consideration on the proposed person concerning the TVJUBCJMJUZ ǰLOPXMFEHF ǰBOEǰDPNQFUFODZǰUIBUǰXJMMǰCFOFųUǰUIFǰ$PNQBOZǰXJUIǰPUIFSǰOFDFTTBSZǰSFMBUFEǰJOGPSNBUJPOǰ for proposal in the Company’s Board of Directors meeting and further appointment.

Investor Relation

5IFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰSFBMJ[FTǰUIBUǰųOBODJBMǰBOEǰOPO ųOBODJBMǰJOGPSNBUJPOǰSFTVMUǰJOǰEFDJTJPOǰNBLJOHǰ impact on investors and stakeholders. Then, disclosure on information must be importantly correct, complete, and adequate through various media channels of the Stock Exchange of Thailand, and the Company’s website.

Moreover, meetings have been arranged between the Company’s Management team and securities analysts, and general investors in order to have question and answer sessions equally. )FODF ǰUIFǰ$PNQBOZǰBTTJHOTǰUIFǰĜ*OWFTUPSǰ3FMBUJPOǰ6OJUġǰUPǰDPNNVOJDBUFǰBOEǰQSPWJEFTǰTFSWJDFTǰPOǰJOGPSNBUJPO ǰ corporate news, and Company’s various activities to institutional investors, shareholders, analysts, related Government agencies, and the general public. Investors can contact this unit at

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Telephone No. Website Facebook Twitter E-mail Address

: : : : :

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0-2511-0911 and 0-2511-0555 ext 1503, 1505 http://www.rs.co.th/investor.html http://www.facebook.com/pages/Rs-ir/256459961140733 https://twitter.com/RS_IR supanutp@rs.co.th, kitsada@rs.co.th

Moreover, in 2013, the Company published information through many activities such as:ĝǰǰǰ"OBMZTUǰ.FFUJOHǰUPǰBOOPVODFǰUIFǰ$PNQBOZĴTǰPQFSBUJOHǰSFTVMUTǰJOǰFWFSZǰRVBSUFS ǰ5IFǰBOBMZTUTǰIBEǰPQQPSUVOJUZǰ to ask questions on various topics with the Management with the meeting’s documents to be published in the Company’s website. ĝǰǰǰ1BSUJDJQBUFǰXJUIǰPUIFSǰSFHJTUFSFEǰDPNQBOJFTǰJOǰUIFǰĜ0QQPSUVOJUZǰ%BZġ ǰPSHBOJ[FEǰCZǰUIFǰ4UPDLǰ&YDIBOHFǰPGǰ Thailand in March and August 2013. ĝǰǰǰ1BSUJDJQBUFǰJOǰFWFOUTǰPSHBOJ[FEǰCZǰUIFǰ4UPDLǰ&YDIBOHFǰPGǰ5IBJMBOEǰBOEǰųOBODFǰDPNQBOJFTǰGPSǰNFFUJOHTǰXJUIǰ institutional , and foreign investors such as Thailand Focus 2013 in Thailand, Citi ASEAN Conference in Singapore, BOEǰ SPBETIPXǰ JOǰ WBSJPVTǰ DPVOUSJFTǰ TVDIǰ BTǰ )POHǰ ,POH ǰ 4JOHBQPSF ǰ .BMBZTJB ǰ +BQBOǰ BOEǰ 64" ǰ FUD ǰ %VSJOHǰ UIFǰ shareholders’ meeting to announce the operating results, and resolutions on various important issues of the Company, shareholders were given opportunity to question Executives on various issues and minute of the meeting was published in the Company’s website. Report on annual form F 56-1, and the annual report F 56-2 were published through SET Community Portal (SCP) system of the Stock Exchange of Thailand, and through the Company’s website. The annual report will be delivered to shareholders and general public annually.

Nomination of Directors and Executives

The Board of Directors Meeting No. 3/2007 held on February 26, 2007 had its resolution to appoint the Nomination and Remuneration Committee and also approved the responsibilities of the Nomination and Remuneration Committee.

Hence, personnel selection for the company’s Director must proceed through the Nomination and Remuneration Committee. The Director’s selection procedures must be done by the Nomination and Remuneration Committee XIPTFǰDPOTJEFSBUJPOǰXJMMǰCFǰCBTFEǰBTǰQFSǰRVBMJųDBUJPOǰJOǰTFDUJPOǰ ǰPGǰUIFǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰ"DUǰ# & ǰ ǰ (1992) and the related announcements of the Securities and Exchange Commission. Moreover, considerations will CFǰCBTFEǰPOǰBCJMJUZ ǰFYQFSJFODFT ǰLOPXMFEHF ǰBOEǰTQFDJųDǰTLJMMǰGPSǰUIFǰCFOFųUǰBOEǰEFWFMPQNFOUǰPGǰDPNQBOZĴTǰ business, and dedicating their times and efforts in conducting their duties. Then, the list will be submitted to the Board of Directors and shareholders’ meeting for approval.

To appoint the Board of Directors, the shareholders’ meeting appoints the director based on majority scores with the following regulations and guidelines: (A) The voting score of each shareholder is equal: one share equals one score (B) Shareholders can vote for each directorial appointment.

(C) Persons who receive the highest scores will be appointed to the committee. In the case of any persons SFDFJWJOHÇ°FRVBMÇ°TDPSFT Ç°UIFÇ°OPNJOBUJPOÇ°QSFTJEFOUÇ°XJMMÇ°NBLFÇ°UIFÇ°ĹłOBMÇ°EFDJTJPO Ç°

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

The Board of Directors Independence from Management

The Company’s Board of Directors consists of 3 non-Executive Directors (3 Independent Directors), and 6 Executive Directors, details of each Directors are shown in topic “Description of Management Team and Other Persons Overseeing the Company�

Chairman of the Board of Directors is the same person as the Chairman of Executive Committee, and represents major group of shareholders. However, as structure of the Company’s Board of Directors consists of 1/3 of Independent Directors, there is check and balance in business operations.

5IFÇ°$PNQBOZÄ´TÇ°#PBSEÇ°PGÇ°%JSFDUPSTÇ°BDLOPXMFEHFTÇ°UIBUÇ°UIFÇ° Ç°*OEFQFOEFOUÇ°%JSFDUPSTÇ°IBWFÇ°RVBMJĹłFEÇ°BTÇ°QFSÇ°SFHVMBUJPOTÇ° stipulated by the Company as in details from “Management Structure of the Companyâ€?. The Company’s Board of Directors is in agreement and appoints Mr. Phisit Dachanabhirom, the Independent Director, who has vast LOPXMFEHFÇ°BOEÇ°FYQFSJFODFTÇ°JOÇ°ĹłOBODJBMÇ°BOEÇ°BDDPVOUJOHÇ°ĹłFME Ç°UPÇ°CFDPNFÇ°$IBJSNBOÇ°PGÇ°UIFÇ°"VEJUÇ°$PNNJUUFF

Suitability of the Board of Directors

5IFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰTUJQVMBUFEǰTVJUBCMFǰRVBMJųDBUJPOTǰGPSǰQFSTPOTǰUPǰIPMEǰUIJTǰQPTJUJPOǰBTǰQFSTPOǰ XJUIǰLOPXMFEHF ǰFYQFSJFODFT ǰBOEǰTQFDJųDǰDBQBCJMJUZǰGPSǰ$PNQBOZĴTǰCFOFųU ǰ5IJTǰJODMVEFTǰEPOBUJOHǰUJNF ǰLOPXMFEHF ǰ capability, and effort in performing duty for the Company. There is also regulations for all Directors and high level Executives (**) to report their securities holding consistently to the Company’s Board of Directors.

Director, in the Company’s Board of Directors, is not allowed to hold position as Director in the registered companies of more than 3 companies, and Executive Director is not allowed to hold position as Director in other registered companies of more than 2 companies. This includes holding position as Director of the Company’s Chairman of Executive Committee, and high level Executive (**) in other registered companies must be approved by the Company’s Board of Directors beforehand.

Director or the high level executive of the Company must not be employed as employee or partner of the Company’s external auditor company during the past 2 years.

3FNBSL Ç° Ç°NFBOTÇ°&YFDVUJWFÇ°VOEFSÇ°EFĹłOJUJPOÇ°PGÇ°UIFÇ°4 & $

5IFÇ°#PBSEÇ°PGÇ°%JSFDUPSTÄ´Ç°&GĹłDJFODZÇ°JOÇ°1FSGPSNJOHÇ°*UTÇ°%VUJFT

Policy Stipulation

The Company’s Board of Directors participates in regulating vision, mission, duty, strategy, target, business plan, and budget of the Company. This also includes supervision on the Management team to proceed as business plan, BOEǰBHSFFEǰCVEHFUǰFGųDJFOUMZǰBOEǰFGGFDUJWFMZ ǰBSSBOHFNFOUǰPOǰHPPEǰDPSQPSBUFǰHPWFSOBODFǰQPMJDZ ǰJOUFSOBMǰDPOUSPMǰ system, internal auditing and suitable risk management and policy, including consistently follow up on operating performances in the Board of Directors’ meeting. Moreover, the Board of Directors has to make consideration on regulations and separation of duties, and responsibilities clearly among the Board of Directors, Audit Committee,

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Nomination and Remuneration Committee, Risk Management Committee, Good Corporate Governance Committee, &YFDVUJWFǰ$PNNJUUFF ǰ)VNBOǰ%FWFMPQNFOUǰ$PNNJUUFFǰBOEǰUIFǰ$IJFGǰ&YFDVUJWFǰ0GųDFS ǰǰ5IFǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰ to review, and approve the Company’s vision and mission at least once in every 5 years.

Management Supervision

The Company’s Board of Directors has to make evaluation on adequacy of internal control, and result on risk management and compliance with the good corporate governance policy at least once a year. On February 26, 2013, the Company’s Board of Directors meeting No. 1/2013 has evaluated on the adequacy of internal control, result on risk management and compliance with the good corporate governance policy.

Supervision on the Operations of subsidiaries and associated companies

For the appointment of Directors for subsidiaries and associated companies, the nomination and voting are under the management from 2014 onwards, and has to receive approval from the Company’s Board of Directors. Persons who are appointed as Directors for subsidiaries and associated companies have the duties to operate for the best interest of the subsidiaries and associated companies. The appointed Directors require approval from the Company’s Board of Directors prior to making resolution, or voting on important issue that is on the same level that requires approval from the Board of Directors if this is operated by the Company itself.

Moreover, in case of the subsidiaries, the appointed persons have to oversee that the subsidiaries have regulations DPODFSOJOHǰUSBOTBDUJPOTǰPGǰSFMBUFEǰDPNQBOJFT ǰXJUIǰEBUBǰDPMMFDUJPO ǰBOEǰBDDPVOUJOHǰSFDPSEǰUIBUǰDBOǰCFǰWFSJųFE ǰBOEǰ DPNQMJFEǰGPSǰUIFǰųOBODJBMǰTUBUFNFOUǰPOǰUJNF ǰBTǰXFMMǰBTǰBQQSPQSJBUFǰBOEǰDPODJTFǰJOUFSOBMǰDPOUSPMǰTZTUFN During 2013, the Company has conformed to the Good Corporate Governance except for the following instant: 1. Did not disclose the Executive Directors’ remunerations that had been received as Directors from other companies as it is not information of the Company.

Monitoring Internal Use of Information

The Company has explained to the administrators their responsibilities in reporting the number of shares in the company owned by them, their spouses and their children who are considered as minors, and any changes made to the holdings, to the Stock Exchange of Thailand, in accordance with Article 59, where the penalty is indicated in Article 275 of the Securities and Exchange Act B.E. 2535 (1992). Apart from the legislative measures, the company has the policy covering the internal information usage written in the Code of Conduct for the group, approved by the Board of Directors on March 1, 2006, to serve as a guideline to all directors, management and employees. The Code of Conduct was latest reviewed, improved and approved by the resolution of the Board of Directors Meeting No. 1/2013 held on February 26, 2013.

In addition, the Company has laid out rules and regulations on the use of the company’s internal information as follows:

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

(1) The Director, Executive, staff members and the employees of the company are obliged to treat the internal JOGPSNBUJPOǰPGǰUIFǰ$PNQBOZǰXJUIǰDPOųEFOUJBMJUZ ǰ (2) The Director, Executive, staff members and the employees of the Company should not directly or indirectly EJTDMPTFǰDPOųEFOUJBMǰPSǰJOUFSOBMǰJOGPSNBUJPOǰPGǰUIFǰ$PNQBOZǰGPSǰUIFǰQFSTPOBMǰCFOFųUǰPGǰBOZǰJOEJWJEVBM ǰ (3) The Director, Executive, the staff members and the employees of the Company should not buy, sell, transfer PSǰSFDFJWFǰUIFǰDPNQBOZĴTǰBTTFUTǰCZǰVTJOHǰUIFǰDPOųEFOUJBMǰPSǰJOUFSOBMǰJOGPSNBUJPOǰUIBUǰNBZǰDBVTFǰEJSFDUǰPSǰJOEJSFDUǰ damage to the Company.

The above mentioned regulations include the spouses and children who are considered minors of the Board of Directors, the staff members and employees of the company. Any violation of the Company’s regulations would be considered as a serious breach of those regulations which could lead to a penalty ranging from a verbal warning to being asked to leave the company.

4JODFǰ ǰUIFǰ$PNQBOZĴTǰ#PBSEǰPGǰ%JSFDUPSTǰIBTǰTQFDJųFEǰUIFǰQPMJDZǰGPSCJEEJOHǰ%JSFDUPST ǰBOEǰIJHIǰMFWFMǰ&YFDVUJWFTǰ

ǰUPǰUSBEFǰUIFǰ$PNQBOZǰTUPDLǰEVSJOHǰUIFǰQFSJPETǰPGǰ ǰXFFLTǰCFGPSFǰQVCMJTIJOHǰPGǰUIFǰųOBODJBMǰTUBUFNFOUT ǰBOEǰ ǰEBZTǰBGUFSǰEJTDMPTJOHǰPGǰUIFǰųOBODJBMǰTUBUFNFOUT

Auditor Remuneration

Remuneration from auditing service The Company and its subsidiaries have paid the audit fees to Karin Audit Co., Ltd., the Company’s auditing DPNQBOZǰGPSǰUIFǰZFBSǰ ǰUIBUǰJODMVEFTǰQFSTPOǰPSǰCVTJOFTTǰSFMBUFEǰUPǰUIFǰBVEJUPSTǰBOEǰBVEJUJOHǰPGųDFǰVOEFSǰUIFǰ auditing company during the past year, to the amount of Baht 2.7 Million which separates into Baht 0.8 Million from the Company, and Baht 1.9 Million from its subsidiaries.

Non-Audit Fee -Nil-

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Responsibilities toward society, environment, and related persons

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Responsibilities toward society, environment, and related persons 1. Equitable business practices The Company strives for legitimacy practice, and performs its duties with honesty and straight forwardness under the Company’s rules and regulations and performs the business ethics in all its activities and decision makings of the Company.

2. Complying with laws and human rights The Company stresses the importance on complying with laws and human rights by adhering on its business practises to be in accordance with laws. This also includes the human rights which is the basic rights of all human beings who are born with equality with the same honour, and privilege without deprivation or nonallowance of any special rights, or any discrimination due to their differences on races, nationalities, religions, genders, colour of their skins, ages, languages, or educational institutions, and including other items unrelated to the discrimination on human rights.

3. Equal treatment to the labour force 5IFÇ°$PNQBOZÇ°JTÇ°XFMMÇ°SFBMJ[FEÇ°UIBUÇ°BMMÇ°FNQMPZFFTÇ°BSFÇ° the most valuable asset of the Company, and are the most important factor in pushing the Company to BDIJFWFÇ°JUTÇ°HPBMT Ç°)FODF Ç°UIFÇ°$PNQBOZÇ°IBTÇ°FNQIBTJ[FEÇ° on fair treatment and practice in terms of opportunity, remuneration, promotion, job transfer, dismissal, as XFMMÇ°BTÇ°EFĹłOJOHÇ°QMBOÇ°GPSÇ°IVNBOÇ°EFWFMPQNFOUÇ°JOUPÇ° Ç° MFWFMTÇ°TVDIÇ°BTÇ°UIFÇ°PSHBOJ[BUJPOÇ°EFWFMPQNFOU Ç°DBSFFSÇ° development, and training development.

1. Organization Development The Company promotes the building of corporate culture within its group of companies starting from new employee orientation and through continuous external education on all year round activities such as “RS Team Building� activity for employees, and “RS Team Leader� for management.

2. Career Development The Company has stipulated the career path and promotion path for employees, including stipulation on duration for management training hours for each group of employees to be promoted as management.

Employees’ preparation has been conducted through the management e-learning project which is the OnLine training and testing on topic of “Management $PNQFUFODZġǰPGÇ°UIFÇ°PSHBOJ[BUJPOÇ°GPSÇ°MPXFSÇ°BOEÇ°NJEEMFÇ° management group.

3. Training Development Guideline for the training development has been TQFDJĹłFEÇ°CZÇ°VTJOHÇ°Äś$PNQFUFODZÇ°#BTFÇ°5SBJOJOHġǰUPHFUIFSÇ° with the research result that necessarily required for the training need. Development methods are based on the public training and in-house training that cover on topics of knowledge development, attitude development, and skill development such as sale and marketing training courses on “Presentation for Successâ€?, and on topic of image building and sale personality development etc. The Company also offers other non-training, and knowledge sharing activities that open opportunities for interested employees to participate in the form of special lectures by other successful executives, BOEÇ°TQFBLFSTÇ°GSPNÇ°PUIFSÇ°PSHBOJ[BUJPOTÇ°TVDIÇ°BTÇ°TQFDJBMÇ° lecture on tax benefits, organising talk show on investment knowledge, and activity on knowledge of LTF & RMF etc.

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Moreover, during 2013, activities to promote and develop its human resources in many important aspects have been arranged by the Company and subsidiaries such as: 1.) Appropriate health check-up program for employees’ annual health check-up that includes negotiation with hospital for special price on additional health check items and including health check-up by IPTQJUBMǰBUǰUIFǰ$PNQBOZĴTǰPGųDF ǰǰǰǰ ǰ&NQMPZFFĴTǰXFMGBSFǰCFOFųUTǰTVDIǰBTǰNFEJDBMǰ expenses’ welfare through life and accident group JOTVSBODF ǰųOBODJBMǰXFMGBSF ǰBOEǰPUIFST ǰTVDIǰBTǰųOBODJBMǰ welfare for funeral, in case of death, and in case of death for employee’s father, mother, child, or lawful TQPVTF ǰųOBODJBMǰIFMQǰGPSǰNBSSJBHF ǰPSEJOBUJPO ǰFUD 3.) Engagement activities for employees such as the New Year activity, football matches in order to build relationship among departments within the PSHBOJ[BUJPOǰFUD 4.) Arrangement on seminar concerning safety and sanitation in the work place by supplying knowledge, OFXTǰUISPVHIǰWBSJPVTǰNFEJBǰXJUIJOǰUIFǰPSHBOJ[BUJPO ǰ BOEǰBMTPǰBDUJWJUZǰPOǰUIFǰBOOVBMǰųSFǰESJMMT 4. Responsibilities toward customer and consumer The Company determines to create and produce all types of media and entertainment portfolios for continuous satisfaction to the customers, distribution of quality products and services to customers as well as supplying the working unit to give services, care, explanation on queries and various problem-solving for customers.

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5. Roles and Responsibilities toward Community, Environment, and the General Public. The Company BEIFSFTÇ° UPÇ° DPOEVDUÇ° JUTÇ° CVTJOFTTÇ° GPSÇ° CFOFĹłUÇ° PGÇ° UIFÇ° economy, society, and environment with consideration on its duty and responsibility towards the country, society, and environment as well as operating and controlling its business completely under the scope of laws and other related regulations. This also includes determination in driving trend for the quality development of society, and environment on its own and by cooperation with the government and community.

Responsibility towards society and environment must wholeheartedly and continuously be promoted to all levels of employees into becoming good and valuable DJUJ[FOÇ°PGÇ°UIFÇ°DPNNVOJUJFTÇ°BOEÇ°TPDJFUZ Ç°4VQQPSUTÇ°BSFÇ° to be given constantly to employees for participation in various activities for the communities and society in establishing good corporate culture in future.

In 2013, important roles and responsibilities toward society of the RS group can be listed below:

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

R Siam - Activity on Moral Support against Flooding

Moral Support against Flooding

R Siam, the subsidiary under RS Public Company Limited, operates under “Activity on Moral Support against 'MPPEJOHġǰIBTÇ°BSSBOHFEÇ°BDUJWJUZÇ°UPÇ°IFMQÇ°Ĺ´PPEÇ°WJDUJNTÇ°JOÇ°WBSJPVTÇ°BSFBTÇ°BTÇ°GPMMPXT

Phanat Nikhom District, Chonburi Province Area in Wat Kudkoon, and Hard Kooduer, .VBOHÇ°%JTUSJDU Ç°6CPOÇ° Ratchathani Province

Bansang, Nardee, and Kabinburi District, PrachinBuri Province

Bang Kratum District, Phitsanulok Province

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“Do For Dad” Activity (This card is for our father)

Do For Dad

On the occasion of His Majesty the King’s Birthday on December 5th and the 2014 New Year celebration, in order to show loyalty to His Majesty the King and love towards our father, the RS Public Company Limited, in cooperation with Raks Thai Foundation, and Chulalongkorn Hospital, have arranged for the “Do For Dad” project (this card is for our father) under the “RS Give Back” project of RS Public Company Limited, and “84 Years – 84 Schools” of the Raks Thai Foundation. This activity has been conducted throughout December month by arranging for artists or the “Raks Thai” Good-will Ambassador to write the father day cards together with children suffering from chronic illness at the Chulalongkorn Hospital so the children can post these cards showing love to their fathers.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

“Support the Elephant Family” Project

Support the Elephant

RS Public Company Limited, under the “RS Give Back” project, in coordination with the “Thai Society for the Prevention of Cruelty to Animals”, TSPCA, have arranged activity on inviting people and the general public to support in feeding the baby elephants. This is to take care and help the growing baby elephants not to becoming stray elephant and living under proper care. Artist “Nako Jump”, the TSPCA Good-Will Ambassador for 2013, is a role model in supporting the baby elephant through the “Asian Elephant Foundation of Thailand” with the aim to attract general public in supporting and helping elephant, which is the country’s animal mascot, and in order to stimulate people’s attention in participating in valuable activities for society.

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Kamikaze - Lunch Treat Project for “Rajvithi Home for Girls”

Give & Share

5IFǰ,BNJLB[FǰNVTJDǰMBCFM ǰBǰTVCTJEJBSZǰPGǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFE ǰVOEFSǰUIFǰĶ,BNJLB[Fǰ(JWFǰ ǰ4IBSFķǰ project has arranged for a lunch treat at “Rajvithi Home for Girls”. This is to pay and share happiness back to society by giving lunch to about 70 girls with age between 6 – 18 years old who have been under conditions that require relief due from problems of lacking supporter, poor family, or under distress condition with improper care, broken family, father or mother require assistance or under arrest, etc. Apart from activities on entertainment and lunch treat, the Company also donates part of the activity’s income to the “Rajvithi Home for Girls” for other activities as well.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Other Activities for Society during 2013

Ķ'VMųMMJOHǰ-PWF ǰ$BSFǰBOEǰ Warmth” Activity on Senior $JUJ[FOǰ%BZ

Activity, for RS employees with volunteering spirits, for charity run in the 26th Standard Charter - Bangkok Marathon with donation to Ananda Mahidol Foundation.

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Public Relation Presenter on the World Aids Day

Activity on Blood Donation as Royal Charity on Mother Day

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Moreover, RS Public Company Limited, in coordination with the Stock Exchange of Thailand, has arranged for internal training on topic of “CSR Branding for Sustainabilityâ€? for all its working units. This is to share knowledge BOEÇ°VOEFSTUBOEJOHÇ°JOÇ°PSEFSÇ°UPÇ°BQQMZÇ°UIFÇ°$43Ç°DPODFQUÇ°GPSÇ°FGĹłDJFOUÇ°CVTJOFTTÇ°PQFSBUJPOTÇ°PGÇ°UIFÇ°EVSBCJMJUZÇ°QSPEVDUÇ° branding, and business operations of the Company.

6. Environmental Management

The Company has promoted in establishing campaign and building conscious among employees on conservation, BOEÇ°VTJOHÇ°SFTPVSDFTÇ°BOEÇ°FOFSHZÇ°DMFWFSMZÇ°BOEÇ°FGĹłDJFOUMZ Ç°5IJTÇ°BMTPÇ°JODMVEFTÇ°TVQQPSUÇ°BOEÇ°DSFBUFTÇ°BDUJWJUJFTÇ°UIBUÇ°BSFÇ° CFOFĹłDJBMÇ°GPSÇ°UIFÇ°QSFTFSWBUJPO Ç°DPOTFSWBUJPO Ç°BOEÇ°POÇ°DPOUJOVPVTMZÇ°DPOTVNJOHÇ°OBUVSBMÇ°SFTPVSDFT Ç°FOWJSPONFOU Ç°BOEÇ° WBSJPVTÇ°FOFSHZÇ°TPVSDFT Ç°5IJTÇ°JTÇ°FYFDVUFEÇ°CZÇ°QSPNPUJOHÇ°POÇ°DBNQBJHOTÇ°BOEÇ°CVJMEJOHÇ°KPJOUÇ°DPOTDJPVTÇ°JOUPÇ°SFBMJ[JOHÇ°UIFÇ° CFOFĹłU Ç°WBMVF Ç°BOEÇ°FGĹłDJFOUMZÇ°DPOTVNJOHÇ°SFTPVSDFTÇ°XIJDIÇ°JODMVEFTÇ°FMFDUSJDJUZÇ°VTBHFÇ°DPOTFSWBUJPOÇ°CZÇ°TXJUDIJOHÇ°PGGÇ° light switches, and electrical appliances after each usage, turn off light switches during lunch break, turn off the BJSÇ°DPOEJUJPOJOHÇ°VOJUTÇ°IBMGÇ°BOÇ°IPVSÇ°CFGPSFÇ°MFBWJOHÇ°PGĹłDF Ç°VTJOHÇ°TUBJSTÇ°JOTUFBEÇ°PGÇ°UIFÇ°FMFWBUPS Ç°XBUFSÇ°DPOTFSWBUJPOÇ°CZÇ° IBWJOHÇ°PGĹłDJBMÇ°UPÇ°NPOJUPSÇ°MFBLBHFTÇ°PGÇ°FRVJQNFOU Ç°PJMÇ°DPOTFSWBUJPOÇ°CZÇ°QSJPSÇ°QMBOOJOHÇ°CFGPSFÇ°BOZÇ°KPVSOFZ Ç°VTJOHÇ°F NBJMÇ° instead of using paper document delivery, and also including other energy reservation in the work-place such as using 2 sides of paper, etc. Apart from constant public relation campaign by supplying information to employees, energy conservation campaigns are used for stimulation under the “OFFICE No. 5â€? campaign with award to be presented to the working unit with the most outstanding achievement on energy conservation as well.

Awards received during 2013

Mrs. Pornpan Techarungchaikul, the Chief 0QFSBUJOHÇ°0GĹłDFS Ç°BOEÇ°.ST Ç°4VQBOVUÇ° Praditsathien, the Investor Relations Manager, received award for “Outstanding Investor Relation Awards 2013â€? under the “SET Awards 2013â€? campaign in which the Stock Exchange of Thailand, in coordination with the “Money & Bankingâ€?

NBHB[JOF Ç°IBEÇ°PSHBOJ[FEÇ°UIFÇ°FWFOUÇ°UPÇ° announce distinctions with awards to the registered companies with distinctive results JOÇ°WBSJPVTÇ°ĹłFMET

MEDIA REVOLUTIONIST

Mr. Ong-art Singlumpong, the Managing Director of television channel 8, received award from HRH Princess Soamsavali Kitiyakara on behalf of the “Action on Smoking and Health Foundation Thailand”

Kung Sutiraj Wongtaewan received the award “Sinrapin Krobkrua Bhuddamaka”, on the occasion of “Wisaka Buchar” festival in 2013.

Baowee RSiam ( Chief Master Sergeant of the Air Force Weerayuth Narnchar), PunChan Parama Imanothai RSiam, Poj Suwannapun RSiam, New Chalutjak Trinongluck, and Soe Satayut Nakthongpetch Wong Plit, received award of “PikkaNaraesuan” 2013 which was held by the “Broadcaster and Journalist’s Assembly of Thailand (BJ.AT)

95

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

13

Internal Control and Risk Management

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97

Internal Control and Risk Management 5IFÇ°$PNQBOZÇ°FNQIBTJ[FTÇ°UIFÇ°JNQPSUBODFÇ°PGÇ°QSPNPUJOHÇ° UIFÇ°JOUFSOBMÇ°DPOUSPMÇ°UPÇ°CFÇ°TVGĹłDJFOUÇ°BOEÇ°TVJUBCMFÇ°GPSÇ°JUTÇ° business operations in order to protect against damage PSÇ°JNQSPQFSÇ°CFOFĹłDJBMÇ°VTBHF Ç°5IFÇ°Ç°Ç°BVEJUÇ°EFQBSUNFOUÇ° is responsible for auditing important operations and ĹłOBODJBMÇ° BDUJWJUJFT Ç° BOEÇ° TVCNJUUJOHÇ° UIFÇ° BVEJUÇ° SFQPSUÇ° directly to the Audit Committee. This is to give the audit department enough independence in its operations.

At present, chief of the internal control is Miss Korapin Naksuprangsi, the Assistant Vice President of the Audit Department. &EVDBUJPOǰ ǰ5SBJOJOH ĝǰǰǰ#BDIFMPSǰEFHSFFǰJOǰ"DDPVOUJOHǰ$IVMBMPOHLPSOǰ ǰǰǰǰ6OJWFSTJUZ ĝǰǰ.BTUFSǰEFHSFFǰJOǰ#VTJOFTTǰ"ENJOJTUSBUJPO ǰǰǰ5IBNNBTBUǰ6OJWFSTJUZ ĝǰǰ1BSUJDJQBUFEǰJOǰWBSJPVTǰUSBJOJOHǰBOEǰTFNJOBSǰDPVSTFTǰ from the Federation of Accounting Professions, Institute of Internal Auditors of Thailand, Thai Institute of Directors (IOD), and Stock Exchange of Thailand.

Experiences : ĝǰǰ ǰ ǰ ǰ ǰ

"TTJTUBOUǰ.BOBHFSǰPGǰĜ,1.(ǰ Phoomchai Audit Co., Ltd.� ĝǰǰ%FD ǰ ǰ ǰQSFTFOUǰǰ "TTJTUBOUǰ7JDFǰ1SFTJEFOUǰPGǰ the Audit Department - RS Plc. During the committee meeting no. 1/2557 on February 26, 2014 in which 3 members of the Audit Committee were presented, the Audit Committee had evaluated UIFǰTVGųDJFODZǰPGǰJOUFSOBMǰDPOUSPMǰTZTUFNǰCZǰDIFDLJOHǰ information from the Executives, and reply from questionnaires on sufficiency of the Company’s internal control system by themselves. Evaluation on the Company’s internal control system could be TVNNBSJ[FEǰJOUPǰ ǰQBSUTǰBTǰGPMMPXT 1. Corporation and environment: 5IFǰ$PNQBOZǰSFDPHOJ[FTǰHPPEǰFOWJSPONFOUǰJOǰUIFǰXPSLǰ place by stipulating on good corporate governance policy and using code of conduct booklet of the Company’s group of companies. These are publicised as references

and guidelines for operations, and to be followed up and evaluated on the result of the policy. Moreover, the Company’s Board of Directors has to clearly stipulate the business operations’ target, review the business plan, and give suggestion to the management for consideration and operation.

2. Risk Management 5IFÇ° $PNQBOZÇ° FNQIBTJ[FTÇ° UIFÇ° JNQPSUBODFÇ° PGÇ° SJTLÇ° management by appointing the Risk Management Committee to specify the policy, regulation, and with support to be given to ensure that the risk management is in accordance to policy, or plan and with successful implementation.

3. Operational control of the management The Company has the policy, regulation, operational HVJEFMJOF Ç°BVUIPSJ[BUJPO Ç°BQQSPWJOHÇ°QPXFSÇ°JOÇ°PSEFSÇ°UPÇ° have strict control.

4. Information systems and data communications The Company has arranged for the information systems that systematically relating to the accounting, and ĹłOBODJBMÇ°SFQPSUJOHÇ°PQFSBUJPOT Ç°BOEÇ°JTÇ°JOÇ°BDDPSEBODFÇ°XJUIÇ° the controlling policy and regulations.

5. Monitoring System The Company’s Board of Directors acknowledges the operating results comparing to targets for every quarter, and having the internal control department that evaluates UIFǰ TVGųDJFODZ ǰ BOEǰ FGųDJFODZǰ of the existing control system, and monitoring the internal control system of various work-units to be in accordance with the approved controlling plan from the Audit Committee.

Hence, the Board of Directors has the opinion that, at QSFTFOU Ç° UIFÇ° $PNQBOZÇ° IBTÇ° TVGĹłDJFOUÇ° JOUFSOBMÇ° DPOUSPMÇ° system concerning transactions with major shareholders, directors, executives, or persons related to the stated persons. On the internal control under other topics, the Board of Directors has the opinion that the Company BMSFBEZÇ°IBTÇ°TVGĹłDJFOUÇ°JOUFSOBMÇ°DPOUSPM

98

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

14

Related Party Transactions

MEDIA REVOLUTIONIST

99

Related Party Transactions Details and information of related party transactions of the Company, subsidiary companies, and related companies BSFÇ°JMMVTUSBUFEÇ°JOÇ°UIFÇ°OPUFÇ°PGÇ°UIFÇ°ĹłOBODJBMÇ°TUBUFNFOUTÇ°BTÇ°PGÇ°%FDFNCFSÇ° Ç° Ç°5IFÇ°$PNQBOZÄ´TÇ°"VEJUÇ°$PNNJUUFFÇ° had examined the related party transactions and made a remark that those related party transactions are in accordance with general commercial conditions, and rules and regulations of the Stock Exchange of Thailand with DPNQMFUFÇ°FWJEFODFÇ°PGÇ°BMMÇ°USBOTBDUJPOTÇ°BTÇ°XFMMÇ°BTÇ°BEFRVBUFÇ°EJTDMPTVSFÇ°PGÇ°UIFÇ°ĹłOBODJBMÇ°TUBUFNFOUT Ç°Ç°Ç°Ç° In 2013 from January 2013, the Company and its subsidiaries underwent related party transactions with individuals XIPÇ°NBZÇ°QPTTFTTÇ°BÇ°DPOĹ´JDUÇ°PGÇ°JOUFSFTUÇ°BTÇ°GPMMPXTÇ° Person who may FODPVOUFSÇ°DPOĹ´JDUT

Relationship

Chetchotisak Company Limited

Mr. Surachai Chetchotisak is a director and shareholder holding 18.70% of the paid-up capital of Chetchotisak Co., Ltd. Mrs. Sujeera Chetchotisak is a shareholder holding 6.30% of the paid-up capital of Chetchotisak Co., Ltd. She is also wife of Mr. Surachai Chetchotisak, a director and shareholder of the 32.39 % of the shares with voting rights of the company.

Mr. Suwat Chetchotisak is a director and shareholder holding 14.35% of the paid-up capital of Chetchotisak Co., Ltd. He is a shareholder holding 4.63% of the Company’s paid-up capital and he is also Mr.Surachai Chetchotisak’s brother.

Miss Malee Chetchotisak is a director and shareholder holding 14.50% of the paid-up capital of Chetchotisak Co., Ltd. She is a sibling of Mr. Surachai Chetchotisak and Mr. Suwat Chetchotisak.

Mr. Surachai Chetchotisak

He is a director and shareholder holding 32.39% of the Company’s paid-up capital.

SS2C Co., Ltd.

Mr. Surachai Chetchotisak is a director and shareholder holding 30.00% of the paid-up capital of SS2C Co., Ltd. Mrs. Sujeera Chetchotisak is a shareholder holding 30.00% of the paid-up capital of SS2C Co., Ltd. She is also wife of Mr. Surachai Chetchotisak, a director and shareholder of the 32.39 % of the shares with voting rights of the company.

Mr. Chot Chetchotisak is a shareholder holding 20.00% of the paid-up capital of SS2C Co., Ltd. He is a shareholder holding 0.01% of the Company’s paid-up capital and he is also Mr.Surachai Chetchotisak’s son.

Mr. Chet Chetchotisak is a shareholder holding 20.00% of the paid-up capital of SS2C Co., Ltd. He is a shareholder holding 0.17% of the Company’s paid-up capital and he is also Mr.Surachai Chetchotisak’s son.

3FNBSL Ç°5IFÇ°TIBSFIPMEJOHÇ°QSPQPSUJPOÇ°PGÇ°QFSTPOTÇ°XIPÇ°NBZÇ°FODPVOUFSÇ°DPOĹ´JDUTÇ°XBTÇ°EBUFEÇ°POÇ° Ç°%FDFNCFSÇ°

100

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Nature of Related Party Transactions and Pricing Conditions and Policy

The pricing of related party transactions was principally concentrated on the assets rental and appropriate EFUFSNJOFEǰCBTFEǰPOǰUIFǰNBSLFUǰQSJDFǰBOEǰPUIFSǰDPOEJUJPOTǰJOTJHOJųDBOUMZǰEJGGFSFOUǰGSPNǰUIPTFǰJOǰUIFǰNBSLFU ǰ5IFǰ related party transactions comprised of:

0GųDFǰ3FOUBMǰ

*OǰUIFǰųOBODJBMǰTUBUFNFOUTǰGPSǰUIFǰZFBSǰFOEFEǰ%FDFNCFSǰ ǰ ǰUIFǰ$PNQBOZǰBOEǰTVCTJEJBSJFTǰNBEFǰQBZNFOUǰPGǰ UIFǰPGųDFǰSFOUBM ǰDPNNPOǰTFSWJDFǰGFF ǰQVCMJDǰVUJMJUJFTǰFYQFOTFǰBOEǰPUIFSǰSFOUBMTǰUPǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰ BOEǰ44 $ǰ$PNQBOZǰ-JNJUFEǰ SFQSFTFOUJOHǰUIFǰQBSUZǰXJUIǰXIPNǰUIFǰDPOŴJDUǰPGǰJOUFSFTUǰNBZǰBSJTF ǰJOǰUIFǰBNPVOUǰPGǰ Baht 64.98 million, Baht 8.51 million and Baht 0.22 million respectively.

The Company also rented the Chetchotisak building 1 – 4 from Chetchotisak Company Limited with the purpose GPSǰVTJOHǰUIFNǰBTǰPGųDFǰCVJMEJOHTǰBOEǰQBSLǰCVJMEJOHǰCZǰQBZJOHǰSFOUBMǰBOEǰDPNNPOǰTFSWJDFǰGFFǰBUǰUIFǰSBUFǰPGǰ#BIUǰ 230 – 320 per square meter which is reasonable when comparing to nearby buildings which charged the rental and common service fee at Baht 380 – 600 per square meter.

For other building rental fee, near to the vicinity of to Chetchotisak Company Limited and SS2C Company Limited BTǰQFSǰEFUBJMTǰJOǰDIBSUǰ ǰPOǰJUFNTǰ ǰ ǰBOEǰ ǰUIFǰSFOUBMǰBOEǰDPNNPOǰTFSWJDFǰGFFǰXFSFǰUPǰCFǰQBJEǰBTǰŴBUǰSBUFǰ UIFǰŴBUǰSBUFǰTFSWJDFǰGFFǰNFBOTǰUIFǰSFOUBMǰBOEǰDPNNPOǰTFSWJDFǰGFFǰXJMMǰCFǰDIBSHFEǰGPSǰUIFǰXIPMFǰCVJMEJOHǰSBUIFSǰ than the number of square meters based on the conditions of each building), with the purpose for using them as PGųDFǰBOEǰDBSǰQBSLǰCVJMEJOHT ǰǰǰ )PXFWFS ǰUIFǰPGųDFǰUIFǰ$PNQBOZǰSFOUFEǰGSPNǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰ BTǰQFSǰEFUBJMTǰJOǰDIBSUǰ ǰPOǰ JUFNTǰ ǰBOEǰ ǰXBTǰUIFǰPGųDFǰ$IFUDIPUJTBLǰ$PNQBOZǰ-JNJUFEǰSFOUFEǰGSPNǰUIFǰ.S ,SJFOHLSBJǰ$IFUDIPUJTBLǰBOEǰ JNQSPWFEǰUIFǰUPXOIPVTFǰVUJMJUZǰTQBDFǰJOUPǰUIFǰPGųDF ǰ5IFǰ$PNQBOZǰQSPWJEFEǰGBDJMJUBUJPOǰPGǰQVCMJDǰVUJMJUJFTǰBOEǰ charged the rental/service fees at the charter rate, with an average rate about Baht 265 per square meter (calculate from rental / service charge as total package cost divided by average usage area of the building) which was at lower average rate than the Chetchotisak building 1-3. This was reasonable rate as in the detailed comparison in previous section. Moreover, reason that the Company had to sub-rent from the Chetchotisak Company Limited, because UIJTǰDPNQBOZǰXBTǰBOǰFYQFSUǰJOǰPGųDFǰSFOUBMǰNBOBHFNFOU

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101

0GųDFǰ3FOUBMǰ

Building / Address 1. Chetchotisak Building 1 419/1 Soi Ladphrao 15, Jatujak, Bangkok 2. Chetchotisak Building 2 419/2 Soi Ladphrao 15, Jatujak, Bangkok

3. Chetchotisak Building 3 419/3 Soi Ladphrao 15, Jatujak, Bangkok 4. 419/4 Soi Ladphrao 15, Jatujak, Bangkok 5. 203/18-20 Soi Ladphrao 15, Jatujak, Bangkok 6. 203/34-36 Soi Ladphrao 15, Jatujak, Bangkok

Renter

Rent by

Chetchotisak Co.,Ltd.

RS Public Company Limited

Chetchotisak Co.,Ltd.

RS Public Company Limited COOLISM Co.,Ltd. RS In-store Media Co.,Ltd. K-Master Co.,Ltd. RS Public Company Limited

Chetchotisak Co.,Ltd. SS2C Co.,Ltd. Mr.Kriengkai Chetchotisak / Chetchotisak Co.,Ltd. Mr.Kriengkai Chetchotisak / Chetchotisak Co.,Ltd.

RS Public Company Limited Thai Copyright Collection Co.,Ltd. RS Public Company Limited Thai Copyright Collection Co.,Ltd.

Rental fee, Contract period Central Approved by Service fee / (**) month Start End ( * ) (million Baht) 3,864 1.12 June 2012 May 2015 Board of Directors

Rented space (square metre)

4,645

1.33

June 2012 May 2015 Board of Directors

1200 50

0.36 0.01

June 2012 May 2015 Board of Directors June 2012 May 2015 Board of Directors

183 2,242

0.04 0.65

Jan 2013 May 2015 Board of Directors July 2013 July 2015 Board of Directors

(Lump sum price) (Lump sum price) (Lump sum price) (Lump sum price)

0.69 0.05

August Dec 2015 Board of Directors 2012 June 2012 May 2015 Board of Directors

0.12

June 2012 May 2015 Board of Directors

0.14

June 2012 May 2015 Board of Directors

Note : * The rental agreement may be renewed at expiry. (The rental agreement renewal may not be automatically enabled and the reconsideration at any renewal shall be made). ** The Related Party Transactions were approved as per the regulations of the Capital Market Supervisory Board, and were disclosed as per the Stock Exchange of Thailand’s announcements

Land Rental

*OǰUIFǰųOBODJBMǰTUBUFNFOUTǰGPSǰUIFǰZFBSǰFOEFEǰ%FDFNCFSǰ ǰ ǰUIFǰ$PNQBOZǰBOEǰTVCTJEJBSJFTǰNBEFǰQBZNFOUǰ of land rental to Chetchotisak Company Limited in the amount of Baht 0.28 million.

The Company and subsidiary company rented the land from the Chetchotisak Company Limited while this land had been subleased from Mr.Kriengkai Chetchotisak for using as equipment storage building by charging the land rental at the rate of Baht 95 - 135 per square wah, which was considered reasonable when compared to the rental of nearby land. The rental details were as follows:

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Land Rental Type Land Soi Ladphrao 15 Jatujak, Bangkok

Renter

Rent by

Rented space

Mr.Kriengkai Chetchotisak / Chetchotisak Co.,Ltd.

RS Public Company Limited K-Master Co.,Ltd.

152 square wah 52 square metre

Rental fee/ month (Baht)

20,000 5,000

Contract term (*)

Approved by (**)

Feb 2013 - May 2015 Management (***) Jan 2013 - May 2015

Note : * The rental agreement may be renewed at expiry. (The rental agreement renewal may not be automatically enabled and the reconsideration at any renewal shall be made). ** The Related Party Transactions were approved as per the regulations of the Capital Market Supervisory Board, , and were disclosed as per the Stock Exchange of Thailand’s announcements. ǰǰǰ5IJTǰBHSFFNFOUǰXBTǰQSPDFFEFEǰCZǰ.BOBHFNFOUǰTJODFǰUIFǰTJ[FǰPGǰUIFǰUSBOTBDUJPOǰEJEǰOPUǰNFFUǰUIFǰDSJUFSJBǰUIBUǰSFRVJSFEǰUIFǰBQQSPWBMǰPGǰUIFǰ Board of Directors as per the regulations of the Capital Market Supervisory Board.

Purchase of Fixed Assets -Nil-

Guarantee -Nil-

The Necessity and Rationale of the Related Party Transactions

"MMǰSFMBUFEǰQBSUZǰUSBOTBDUJPOTǰBSFǰEPOFǰVOEFSǰUIFǰOFDFTTJUZǰBOEǰSBUJPOBMFǰPGǰUIFǰUSBOTBDUJPOTǰUPǰPQUJNJ[FǰUIFǰųSNǰ CFOFųU ǰ ǰUIFǰSFMBUFEǰQBSUZǰUSBOTBDUJPOTǰCFUXFFOǰUIFǰ$PNQBOZǰBOEǰUIFǰTVCTJEJBSZǰDPNQBOJFTǰBOEǰSFMBUFEǰ QBSUJFT ǰUIFǰDPSFǰUSBOTBDUJPOǰPGǰXIJDIǰBSFǰ-BOEǰSFOUBM ǰ0GųDFǰSFOUBMǰBOEǰ(VBSBOUFF ǰXFSFǰVOEFSǰOPSNBMǰDPVSTFǰPGǰ business, no special condition and no transfer of interest. Pricing, fee rate and/or interest rate could be compared XJUIǰPUIFSǰFOUJUJFTĴǰUSBOTBDUJPOTǰBOEǰIBTǰCFFOǰEJTDMPTFEǰJOǰUIFǰOPUFTǰUPǰųOBODJBMǰTUBUFNFOUTǰPGǰ The Audit Committee has reviewed the related party transactions such as sales and purchase of goods or assets, DPQZSJHIU ǰ QSPEVDUJPOǰ TFSWJDF ǰ PSHBOJ[JOHǰ DPODFSUTǰ BOEǰ NBSLFUJOHǰ BDUJWJUJFT ǰ TBMFTǰ PGǰ BEWFSUJTJOH ǰ TFSWJDFT ǰ MPBOǰ JOUFSFTU ǰBOEǰFUD ǰEJTDMPTFEǰJOǰUIFǰOPUFTǰUPǰųOBODJBMǰTUBUFNFOUTǰPGǰ ǰBOEǰIBTǰUIFǰGPMMPXJOHǰDPNNFOUT The mentioned transactions occurred under normal course of business, necessity and rationale of the connected USBOTBDUJPOTǰUPǰPQUJNJ[FǰUIFǰųSNǰCFOFųU

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Measures or Steps of Approval in Related Party Transactions

The Company has set a policy for the approval of related party transactions. The related party transactions has SPPUFEǰJOǰOFDFTTJUZ ǰSBUJPOBMFǰBOEǰPQUJNBMǰPGǰUIFǰųSNǰCFOFųUǰBOEǰDPOEJUJPOTǰBSFǰJOEJGGFSFOUǰUPǰUIFǰUSBOTBDUJPOǰ XJUIǰFYUFSOBMǰQBSUJFT ǰ*OǰDBTFǰPGǰUIFǰTJHOJųDBOUǰSFMBUFEǰQBSUZǰUSBOTBDUJPOT ǰDPOEVDUFEǰJOǰBDDPSEBODFǰXJUIǰUIFǰSVMFǰ governing listed securities, all approval must be consented by the Audit Committee, the Board of Directors and Shareholders’ meeting excluding votes of the related persons. Nevertheless, all procedures must be in line with concerned regulations of the Capital Market Supervisory Board.

Policy and Future Potential of Related Party Transactions, including acquisition and disposal of assets

The Company still maintains the policy for transactions between the Company and the subsidiary companies TVDIǰBTǰPGųDFǰSFOUBM ǰMBOEǰSFOUBMǰBOEǰHVBSBOUFFǰPGǰMPBOǰGSPNǰCBOLǰCZǰUIFǰ$PNQBOZǰBOEǰUIFǰ$PNQBOZĴTǰEJSFDUPST ǰ )PXFWFS ǰUIFǰ$PNQBOZǰIBTǰOPǰQPMJDZǰUIBUǰNBZǰMFBEǰUPǰDPOŴJDUǰPGǰJOUFSFTUTǰCFUXFFOǰUIFǰSFMBUFEǰQFSTPOTǰ TVDIǰ BTǰMPBOǰBOEǰHVBSBOUFFǰPGǰMPBOǰFUD ǰFYDFQUǰGPSǰUIFǰDBTFǰUIBUǰXJMMǰPQUJNJ[FǰUIFǰųSNǰCFOFųU ǰBOEǰDPOEJUJPOTǰBSFǰ indifferent or better than the transaction with external parties. The Company will ensure that all related party transactions according to concerned regulations of the Capital Market Supervisory Board, will be consented by the Board of Directors and Shareholders’ meeting.

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ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

15

Financial Highlights

105

MEDIA REVOLUTIONIST

Financial Highlights Statements of Financial Position For the Year Ended December 31, 2011 - 2013 Detail ASSETS CURRENT ASSETS : Cash and cash equivalents 5FNQPSBSZÇ°JOWFTUNFOUÇ° Ç°ĹłYFEÇ°EFQPTJUÇ° with maturity of twelve months Trade accounts receivable-net Trade accounts receivable- Related parties-net Short-term loans to related parties - net Inventories - net Accrued income Other current assets Total Current Assets /0/ $633&/5Ç°"44&54Ç° Investments in associated company for under the equity method Property plant and equipment - net Advance payment of license for operation right in spectrum of digital television Intangible assets - net Deferred tax assets Other non-current assets Total Non-Current Assets TOTAL ASSETS

2011 (Audited)

%

282,174 4,208

14.7% 0.2%

626,099 1,907

2012 (Audited)

(Thousand baht)

%

2013 (Audited)

313,597 4,306

12.3% 0.2%

572,147 4,391

19.2% 0.1%

32.7% 0.1%

652,953 11,155

25.6% 0.4%

756,169 19,730

25.3% 0.7%

10,000 37,392 140,261 113,369 1,215,409

0.5% 2.0% 7.3% 5.9% 63.5%

140,564 244,965 152,697 1,520,237

5.5% 9.6% 6.0% 59.5%

63,312 233,716 98,823 1,748,288

2.1% 7.8% 3.3% 58.5%

1,458

0.1%

5,606

0.2%

5,496

0.2%

111,763 -

5.8% -

259,520 -

10.2% -

310,016 38,000

10.4% 1.3%

469,231 40,330 75,269 698,050 1,913,459

24.5% 2.1% 3.9% 36.5% 100.0%

643,320 64,554 61,830 1,034,830 2,555,067

25.2% 2.5% 2.4% 40.5% 100.0%

720,771 73,119 90,520 1,237,922 2,986,210

24.1% 2.4% 3.0% 41.5% 100.0%

%

106

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Statement of Financial Position For the Year Ended December 31, 2011 - 2013 (Cont.)

(Thousand baht)

2011 (Audited)

%

2012 (Audited)

%

231,308 1,305 2,488

12.1% 0.1% 0.1%

86,000 195,324 1,697 4,587

3.4% 7.6% 0.1% 0.2%

185,015 1,659 5,140

6.2% 0.1% 0.2%

-

-

-

-

11,011

0.4%

66,481 249,427 113,716 664,724

3.5% 13.0% 5.9% 34.7%

240,000 74,880 324,454 164,678 1,091,619

9.4% 2.9% 12.7% 6.4% 42.7%

286,915 8,000 196,725 463,323 164,382 1,322,170

9.6% 0.3% 6.6% 15.5% 5.5% 44.3%

10,982 15,971 6,142 33,095 697,819

0.6% 0.8% 0.3% 1.7% 36.5%

16,684 81,000 32,537 21,134 10,626 161,981 1,253,600

0.7% 3.2% 1.3% 0.8% 0.4% 6.3% 49.1%

12,759 38,756 30,874 11,394 93,783 1,415,953

0.4% 1.3% 1.0% 0.4% 3.1% 47.4%

1,026,000 882,654 129,502 (16,594)

53.6% 46.1% 6.8% (0.9%)

1,026,000 882,692 (74,672) 129,536 17,225 (16,594)

40.2% 34.5% (2.9%) 5.1% 0.7% (0.6%)

1,026,000 953,867 (74,672) 193,593 30,061 (16,594)

34.4% 31.9% (2.5%) 6.5% 1.0% (0.6%)

17,959 187,237 1,200,759 14,881 1,215,640 1,913,459

0.9% 9.8% 62.8% 0.8% 63.5% 100.0%

32,312 74,672 251,060 1,296,232 5,235 1,301,467 2,555,067

1.3% 2.9% 9.8% 50.7% 0.2% 50.9% 100.0%

52,995 74,672 353,342 1,567,264 2,993 1,570,257 2,986,210

1.8% 2.5% 11.8% 52.5% 0.1% 52.6% 100.0%

Detail LIABILITIES AND EQUITY CURRENT LIABILITIES : 4IPSU UFSNÇ°MPBOTÇ°GSPNÇ°ĹłOBODJBMÇ°JOTUJUVUJPOT Trade accounts payable and others payable Trade accounts payable and others - related $VSSFOUÇ°QPSUJPOÇ°PGÇ°Ç°MJBCJMJUZÇ°VOEFSÇ°ĹłOBODJBMÇ° lease agreements $VSSFOUÇ°QPSUJPOÇ°PGÇ°FNQMPZFFÇ°CFOFĹłUÇ° obligations Current portion of long-term loan Short-term loans from related parties 6OFBSOFEÇ°SFWFOVFTÇ° Ç°PUIFST Accrued expenses Other current liabilities Total Current Liabilities NON-CURRENT LIABILITIES : -JBCJMJUJFTÇ°VOEFSÇ°ĹłOBODJBMÇ°MFBTFÇ°BHSFFNFOUT Long-term loans &NQMPZFFÇ°CFOFĹłUÇ°PCMJHBUJPOT Deferred tax liabilities Other non-current liabilities Total Non-Current Liabilities Total Liabilities EQUITY Share capital : "VUIPSJ[FEÇ°TIBSFÇ°DBQJUBMÇ° Issued and paid - up share capital Treasury shares Premium on share capital Advance receipts for share subscription Difference between the purchase price of investment in subsidiaries under common control and their net book value 3FUBJOFEÇ°FBSOJOHTÇ° %FĹłDJUT Ç° Appropriated - Legal reserve Appropriated - Treasury share reserve 6OBQQSPQSJBUFE Equity attributable to owners of the Company Non - controlling interests Total equity TOTAL LIABILITIES AND EQUITY

2013 (Audited)

%

107

MEDIA REVOLUTIONIST

Statements of Comprehensive Income For the Year Ended December 31, 2011 - 2013 Detail Revenues Revenue from media Revenue from music distribution 3FWFOVFǰGSPNǰTIPXCJ[ Revenue from other services Total sales and services income Cost of sales and services (SPTTǰQSPųU Other income (SPTTǰQSPųUǰCFGPSFǰFYQFOTFT Selling expenses Administrative expense "NPSUJ[BUJPOǰPGǰFNQMPZFFǰCFOFųUǰFYQFOTFT Total expenses 1SPųUǰCFGPSFǰųOBODFǰDPTUTǰBOEǰǰ income tax Finance costs 1SPųUǰCFGPSFǰJODPNFǰUBY Income tax 1SPųUǰBOEǰDPNQSFIFOTJWFǰJODPNFǰGPSǰ the years Attributable to Owner of the Company Non - controlling interests

Earnings per share Owner of the Company (Baht) Number of ordinary shares (Shares) Diluted earnings per share Owner of the Company (Baht) Weighted average number of diluted ordinary shares (Shares)

2011 (Audited)

%

2012 (Audited)

%

(Thousand baht)

2013 (Audited)

%

941,852 934,477 814,141 38,885 2,729,356 1,799,490 929,866 35,666 965,532 101,264 534,736 9,859 645,860 319,673

34.5% 34.2% 29.8% 1.4% 100.0% 65.9% 34.1% 1.3% 35.4% 3.7% 19.6% 0.4% 23.7% 11.7%

1,192,979 883,216 718,826 17,370 2,812,391 1,751,614 1,060,778 60,201 1,120,978 151,472 556,744 8,598 716,813 404,165

42.4% 31.4% 25.6% 0.6% 100.0% 62.3% 37.7% 2.1% 39.9% 5.4% 19.8% 0.3% 25.5% 14.4%

1,986,275 777,175 692,561 5,452 3,461,463 2,109,271 1,352,192 22,354 1,374,547 213,511 659,219 8,705 881,435 493,112

57.4% 22.5% 20.0% 0.2% 100.0% 60.9% 39.1% 0.6% 39.7% 6.2% 19.0% 0.3% 25.5% 14.2%

2,707 316,965 117,547 199,418

0.1% 11.6% 4.3% 7.3%

7,509 396,656 122,824 273,832

0.3% 14.1% 4.4% 9.7%

17,294 475,818 83,561 392,257

0.5% 13.7% 2.4% 11.3%

189,109 10,310 199,418

6.9% 0.4% 7.3%

284,273 (10,442) 273,832

10.1% (0.4%) 9.7%

394,492 (2,235) 392,257

11.4% (0.1%) 11.3%

0.2172 870,696

0.3256 873,049

0.4364 903,953

0.2035

0.2991

0.4116

929,102

950,440

958,410

Financial Statement Year 2011 are update in accordance with Accounting Standards applicable in the Year 2013 by the Management.

108

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Statements of Cash Flows For the Year Ended December 31, 2011 - 2013 Detail CASH FLOWS FROM OPERATING ACTIVITIES ǰǰǰ/FUǰQSPųU ǰ"EKVTUNFOUTǰUPǰSFDPODJMFǰOFUǰQSPųUǰUPǰ net cash provided by (used in) operating activities ǰ%FQSFDJBUJPOǰBOEǰBNPSUJ[BUJPOǰǰ Allowance for doubtful accounts (reversal) and written off withholding tax Allowance for decline in value of inventory (reversal) Allowance for sales return - net (reversal) Allowance for impairment of assets (reversal) Allowance for impairment - investment in associate (reversal) Reversal impairment - investment in subsidiaries (reversal) Allowance for doubtful accounts on Short-term loans Provision for loss on investment in subsidiaries (reversal) Provision for damage from litigation case Loss (gain) on sales and written off equipment Loss on sales of intangible assets ǰ1SPWJTJPOǰGPSǰFNQMPZFFǰCFOFųUTǰ ǰ6OSFBMJ[FEǰHBJOǰPOǰFYDIBOHFǰSBUFTǰ Interest income Interest expenses Income tax ǰ1SPųUǰGSPNǰPQFSBUJOHǰBDUJWJUJFTǰCFGPSFǰ changes in operating assets and liabilities (INCREASE) DECREASE IN OPERATING ASSETS Trade accounts receivable Inventories Other current assets Other non - current assets INCREASE (DECREASE) IN OPERATING LIABILITIES Accounts payable and others payable Other current liabilities ǰ%FDSFBTFǰJOǰFNQMPZFFǰCFOFųUǰPCMJHBUJPOTǰ Other non - current liabilities Proceed from refunding witholding tax Payment of income tax Net Cash Provided by Operating Activities

(Thousand baht)

2011 (Audited)

%

2012 (Audited)

2013 (Audited)

199,418

70.7%

273,832

87.3%

392,257

68.5%

85,419 (2,119)

30.3% (0.8%)

92,930 (2,913)

29.6% (0.9%)

278,242 (13,720)

48.6% (2.4%)

5,218

1.8%

2,425

0.8%

(12,402)

(2.2%)

(21,407) 1,901 -

(7.6%) 0.7% -

38,701 (18,694) (4,148)

12.3% (6.0%) (1.3%)

(10,973) 28,296 -

(1.9%) 4.9% -

-

-

-

-

110

0.0%

(2,039)

(0.7%)

-

-

-

-

-

-

(2,253)

3,861 (3,556)

1.4% (1.3%)

2,001 20,538

0.6% 6.5%

515

0.1%

17,391 (4,265) 2,707 117,565

6.2% (1.5%) 1.0% 41.7%

167 16,566 (507) (2,395) 7,509 122,824

0.1% 5.3% (0.2%) (0.8%) 2.4% 39.2%

17,230 (67) (4,761) 17,294 83,561

3.0% (0.0%) (0.8%) 3.0% 14.6%

400,096

141.8%

548,837

175.0%

773,329

135.1%

(139,156) 9,824 3,218 (4,303)

(49.3%) 3.5% 1.1% (1.5%)

(36,670) (105,597) (141,397) (23,442)

(11.7%) (33.7%) (45.1%) (7.5%)

(94,808) 89,721 62,002 (9,163)

(16.6%) 15.7% 10.8% (1.6%)

14,663 8,050 (1,420) 379 26,435 (80,639) 237,148

5.2% 2.9% (0.5%) 0.1% 9.4% (28.6%) 84.0%

(37,222) 80,368 4,030 42,516 (119,527) 211,895

(11.9%) 25.6% 1.3% 13.6% (38.1%) 67.6%

(6,047) 300,943 3,020 11,775 (146,492) 984,281

(1.1%) 52.6% 0.5% 2.1% (25.6%) 172.0%

%

%

-

109

MEDIA REVOLUTIONIST

Statements of Cash Flows For the Year Ended December 31, 2011 - 2013 (Cont.)

Detail CASH FLOWS FROM INVESTING ACTIVITIES Interest income Increase in short-term loans to related parties and related persons Receipts from short-term loans to related parties and related persons Decrease in short-term loans to others Cash received from sales of investment in subsidiary Payment of inventment in subsidiaries Ç°5FNQPSBSZÇ°JOWFTUNFOUTÇ° Ç°ĹłYFEÇ°EFQPTJUÇ° with maturity of twelve months Increase in payable for purchase on assets Ç°1VSDIBTFÇ°PGÇ°ĹłYFEÇ°BTTFUTÇ° Ç°1SPDFFETÇ°GSPNÇ°EJTQPTBMÇ°PGÇ°ĹłYFEÇ°BTTFUTÇ° Advance payment of license for operation right in spectrum of digital Increase in intangible assets Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Payment of interest expenses Receipt of short-term loans from Ç°Ç°Ç°Ç°ĹłOBODJBMÇ°JOTUJUVUJPOTÇ° Repayment of short-term loans from Ç°Ç°Ç°Ç°ĹłOBODJBMÇ°JOTUJUVUJPOTÇ° Receipts of long-term loans from Ç°Ç°Ç°ĹłOBODJBMÇ°JOTUJUVUJPOTÇ° Repayment of long-term loans from Ç°Ç°Ç°ĹłOBODJBMÇ°JOTUJUVUJPOTÇ° Ç°3FQBZNFOUÇ°PGÇ°MJBCJMJUZÇ°VOEFSÇ°ĹłOBODJBMÇ°MFBTFÇ°Ç° Increase in subsidiary's share capital Increase in short-term loans from related parties Dividend paid Premium on Share Capital Advance receipts for share subscription Increase in share capital Net Cash Provided by (Used in) Financing Activities NET INCREASE (DECREASE) IN CASH AND CASH Ç°Ç°Ç°Ç°Ç°&26*7"-&/54Ç° Ç°46#4*%"3: 4Ç°$"4)Ç°"5Ç°*/7&45.&/5Ç°4"-&4Ç° Ç°46#4*%"3: 4Ç°$"4)Ç°"5Ç°*/7&45.&/5Ç°163$)"4&Ç° Ç°$"4)Ç°"/%Ç°$"4)Ç°&26*7"-&/54Ç°"5Ç°5)&Ç° BEGINNING OF THE YEAR Ç°$"4)Ç°"/%Ç°$"4)Ç°&26*7"-&/54Ç°"5Ç°5)&Ç° ENDING OF THE YEAR

(Thousand baht)

2011 (Audited)

%

2012 (Audited)

2013 (Audited)

4,020 (8,102)

1.4% (2.9%)

2,685 (8,040)

0.9% (2.6%)

4,570 -

0.8% -

-

-

18,040

5.8%

-

-

(901) -

(0.3%) -

1,531 2,610

0.5% 0.8%

1,309 -

0.2% -

(124)

(0.0%)

(2,610) (98)

(0.8%) (0.0%)

85

0.0%

(33,313) 4,222

(11.8%) 1.5%

2,149 (191,636) 8,996

0.7% (61.1%) 2.9%

(2,149) (121,262) 1,267

(0.4%) (21.2%) 0.2%

(322,990) (357,188)

(114.5%) (126.6%)

(221,589) (387,963)

(70.7%) (123.7%)

(38,000) (313,590) (467,769)

(6.6%) (54.8%) (81.7%)

(2,741) 45,000

(1.0%) 15.9%

(6,860) 166,000

(2.2%) 52.9%

(17,452) 25,000

(3.0%) 4.4%

(45,000)

(15.9%)

(80,000)

(25.5%)

(111,000)

(19.4%)

-

-

321,000

102.4%

205,915

36.0%

(15,000)

(5.3%)

-

-

(240,000)

(41.9%)

(12,117) -

(4.3%) -

(4,364) 800 -

(1.4%) 0.3% -

(4,787) 8,000

(0.8%) 1.4%

(230,667) 298,367

(81.7%) 105.7%

(131,430) (74,672) 17,225 72

(41.9%) (23.8%) 5.5% 0.0%

(271,535) 30,061 118,007

(47.4%) 5.3% 20.6%

37,843 (82,197)

13.4% (29.1%)

207,772 31,704

66.3% 10.1%

(257,792) 258,720

(45.0%) 45.2%

364,371

129.1%

(4,634) 4,353 282,174

(1.5%) 1.4% 90.0%

313,597

54.8%

282,174

100.0%

313,597

100.0%

572,317

100.0%

%

%

Financial Statement Year 2011 are update in accordance with Accounting Standards applicable in the Year 2013 by the Management.

110

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Key Financial Ratios As at 31 December Financial Ratio Liquidity Ratios Liquidity Ratio (time) Quick Ratio (time) Cash Flows Ratio (time) Account Receivable Turnover (time) Average Debt Collection Period (day) Inventory Turnover (time) Average Number of Days Sales (day) Accounts Payable Turnover (time) Credit Period (day) Cash Cycle (day) 1SPųUBCJMJUZǰ3BUJP (SPTTǰ1SPųUǰ.BSHJOǰ

0QFSBUJOHǰ1SPųUǰ.BSHJOǰ

0QFSBUJOHǰ$BTIǰ'MPXTǰUPǰ0QFSBUJOHǰ1SPųUǰ3BUJPǰ

/FUǰ1SPųUǰ.BSHJOǰ

Return on Equity (%) &GųDJFODZǰ3BUJPT Return on Asset (%) Return on Fixed Asset (%) Assets Turnover (time) EBITDA Margin (%) Leverage Ratio Debt/Equity Ratio (time) Interest Coverage (time) Debt Service Coverage (Cash basis)(time) Dividend Payment Rate (%) Per Share Book Value per Share (baht) Earning per Share (baht)

(Thousand baht)

2011

2012

2013

1.83 1.38 0.36 4.90 75 24.65 15 8.76 42 48

1.39 0.90 0.24 4.35 84 14.49 26 9.28 40 70

1.32 1.02 0.82 4.81 76 16.37 23 12.71 29 70

34.07% 10.41% 83.50% 6.84% 18.23%

37.72% 12.23% 61.60% 9.90% 22.77%

39.06% 13.60% 209.08% 11.32% 27.55%

18.42% 203.65% 1.59 15.30%

18.09% 178.44% 1.29 17.03%

17.80% 162.63% 1.10 16.61%

0.58 118.08 0.76 70.01%

0.97 53.82 0.53 76.83%

0.90 28.51 1.32 83.86%

1.38 0.2172

1.48 0.3256

1.73 0.4364

MEDIA REVOLUTIONIST

16

Management Discussion and Analysis

111

112

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Board of Directors’ Report To Shareholders, R.S. Public Company Ltd. 5IFǰ#PBSEǰPGǰ%JSFDUPSǰJTǰSFTQPOTJCMFǰGPSǰUIFǰSFQPSUJOHǰPGǰUIFǰDPOTPMJEBUFEǰųOBODJBMǰTUBUFNFOUTǰPOǰUIFǰDPNQBOZǰ and subsidiaries, contents of which have been consistently prepared with respect to the Thai generally accepted accounting standards where prudence are duly exercised and information disclosed in the notes accompanying the statements.

The Extraordinary General Meeting of Shareholders No. 1/2546 has approved an Audit Committee comprising independent directors who are not involved in the day-to-day operations to take responsibility over the quality of UIFǰųOBODJBMǰSFQPSUTǰBOEǰJOUFSOBMǰDPOUSPMT ǰXIJDIǰUIFǰ"VEJUǰ$PNNJUUFFĴTǰPQJOJPOǰXBTǰEFTDSJCFEǰJOǰ"VEJUǰ$PNNJUUFFǰ Report shown in this annual report.

The Board of Director has considered that the company has good internal control and has concurred with the Audit $PNNJUUFF ǰUIFǰ&YFDVUJWFTǰBOEǰUIFǰBVUIPSJTFEǰBVEJUPSTǰGPSǰUIFǰDPOTPMJEBUFEǰųOBODJBMǰTUBUFNFOUTǰPGǰ ǰPOǰUIFǰ DPNQBOZǰBOEǰTVCTJEJBSJFTǰUIBUǰUIFǰDPNQBOZĴTǰUIFǰųOBODJBMǰQPTJUJPOǰBOEǰUIFǰSFTVMUǰPGǰPQFSBUJPOǰQSFTFOUTǰGBJSMZǰJOǰ conformity with generally accepted accounting principles.

(Surachai Chetchotisak ) $IBJSNBO $IJFGǰ&YFDVUJWFǰ0GųDFS

MEDIA REVOLUTIONIST

113

Audit Committee Report To Shareholders, RS Public Company Ltd. In 2013, the Audit Committee performed its duties in accordance with the Audit Committee Charter approved by the Board of Directors, and encouraged to enhance good corporate governance. This was to ensure transparency, ethics, BOEǰDPEFǰPGǰDPOEVDUǰDPNQMJBODFǰXIJDIǰDSFBUFEǰDPOųEFODFǰUPXBSETǰTIBSFIPMEFST ǰBOEǰPUIFSǰTUBLFIPMEFST ǰ5IFǰ ųOBODJBMǰTUBUFNFOUTǰPGǰ ǰIBEǰCFFOǰSFWJFXFEǰCZǰUIFǰ"VEJUǰ$PNNJUUFFǰXJUIǰUIFǰFYFDVUJWFTǰBOEǰUIFǰBVUIPSJ[FEǰ BVEJUPSTǰUPǰųOEǰUIBUǰUIFǰDPNQBOZĴTǰųOBODJBMǰTUBUFNFOUTǰBOEǰųOBODJBMǰEBUBǰEJTDMPTVSFǰBSFǰFOUJSF ǰTVGųDJFOUǰBOEǰ precise and meet the general accounting standard. The Company’s internal control systems are appropriate and no substantial defect has been found. The Company conducts its operations in accordance with the related rules, BOEǰUIFǰHPPEǰDPSQPSBUFǰHPWFSOBODFǰQPMJDZ ǰJODMVEJOHǰUIFǰQPMJDZǰDPODFSOJOHǰUSBOTBDUJPOTǰUIBUǰNJHIUǰCSJOHǰDPOŴJDUǰPGǰ JOUFSFTU ǰ5IFǰ"VEJUǰ$PNNJUUFFǰDPNNFOUFEǰUIBUǰUIFǰTUBUFEǰJUFNTǰXFSFǰTVJUBCMFǰUPǰUIFǰVUNPTUǰMPOH UFSNǰCFOFųUǰGPSǰ the Company.

The Audit Committee also held meetings with external auditors and internal audit department in order to discuss the issues on risk assessment, audit results and the adequacy of the internal control systems, including suggestion on prevention or reduction of risks. Moreover, the Audit Committee considered and approved internal audit plans, as well as overseeing the company’s operations to ensure transparency and compliance with laws and regulations.

In 2013 the Audit Committee held the meeting for 4 times, including the meeting with external auditors without executives or management in order to grant external auditors the opportunity to express any problems from audit ĹłOEJOHTÇ°BOEÇ°SFDPNNFOEBUJPOT Ç°*OÇ°BEEJUJPO Ç°UIFÇ°"VEJUÇ°$PNNJUUFFÇ°FWBMVBUFÇ°UIFÇ°"VEJUÇ°$PNNJUUFFÇ°QFSGPSNBODFÇ°GPSÇ° 2013.

The Audit Committee also nominated Karin Audit Company Limited to be chosen as external auditor for 2014 upon DMPTFMZǰDPOTJEFSFEǰUIFǰDPNQBOZĴTǰRVBMJųDBUJPO ǰJOEFQFOEFODF ǰFYQFSJFODFǰBOEǰBVEJUǰGFF ǰǰǰ5IJTǰIBTǰCFFOǰQSPQPTFEǰ to the Board of Directors for further approval in Shareholders’ Meeting.

(Phisit Dachanabhirom) Chairman of the Audit Committee

114

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Management Discussion and Analysis The management discussion and analysis has been prepared from the performances of RS Public Company Limited BOEǰUIFǰDPNQBOJFTǰXJUIJOǰ34ǰ(SPVQǰ ĜTVCTJEJBSJFTġ ǰJOǰBDDPSEBODFǰXJUIǰUIFǰųOBODJBMǰTUBUFNFOUTǰFYBNJOFEǰCZǰ the auditor for the year ending December 31, 2011, 2012 and 2013 respectively. To clearly illustrate the overall performance of RS Group of Companies, the operations are divided into 3 categories i.e., media business, music EJTUSJCVUJPOǰCVTJOFTT ǰBOEǰTIPXCJ[ǰCVTJOFTT ǰBMMǰPGǰXIJDIǰBSFǰUIFǰDPSFǰCVTJOFTTǰPQFSBUJPOTǰPGǰUIFǰ$PNQBOZ

5IFÇ°FDPOPNJDÇ°BOEÇ°JOEVTUSJBMÇ°TJUVBUJPOTÇ°UIBUÇ°SFĹ´FDUÇ°UIFÇ°SFTVMUTÇ°PGÇ°PQFSBUJPOÇ°BOEÇ°QPMJDZ Ç°TUSBUFHZ Ç° or business decision.

During the past two years, satellite television business has been regarded as the rising star business that generates increasingly important revenue growth to the Company. This is due from growth in the television media industry, and from ability of the Company’s management team that produces quality performances to the market. However, the main factor that has impact towards overall growth in the television media industry is the expenses on advertising budget of the industry which will increase or decrease depending on many factors such as the economic and political situation, domestic consumers’ consumption, competition among advertisers, and decision making on type of media for advertising, etc.

However, main factors that are important in decision making prior to place advertising from various advertising agencies are the “rating�, and “value for money�. Even though how much the advertising industry will grow any QSPHSBNǰXJUIPVUǰSBUJOHǰXJMMǰOPUǰCFǰBCMFǰUPǰTFMMǰBOZǰBEWFSUJTJOH ǰ)FODF ǰUIFǰ$PNQBOZǰSFBMJ[FTǰUIFǰJNQPSUBOUǰPGǰHPPEǰ quality contents that build the program rating and, thus, adjusts the marketing strategy and competitive style to be in correspondence with the present situation that can compete evenly with competitors. This also includes the strategic adjustments to serve future growth as each program will be determined with key strategy such as branding, positioning, clear target group, creative development of the program in correspondence with popularity trend and taste of target group, using strong point of RS as the main element in producing quality program as well as suitable cost management, etc. The strategic formulation will help build rating and attract attention of customers who are the advertising agencies into channeling more of their advertising budgets through the Company’s programs as they foresee value for money with their limited budgets.

Summary of operating results by business category

5IFǰDPOTPMJEBUFEǰųOBODJBMǰTUBUFNFOUTǰPGǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰǰBOEǰJUTǰTVCTJEJBSJFTǰ ĜUIFǰ$PNQBOZġ ǰGPSǰ the year ended December 31, 2013 shows Total Sales and Services Income of Baht 3,461.5 million, Cost of Sales PGǰ#BIUǰ ǰNJMMJPOǰBOEǰ4FMMJOHǰBOEǰ"ENJOJTUSBUJWFǰ&YQFOTFTǰBOEǰPUIFSǰFYQFOTFTǰPGǰ#BIUǰ ǰNJMMJPO ǰ1SPųUǰ and Comprehensive Income for the Periods Attributable to the Owner of the Company in this year was Baht 394.5 million, showing an increase of 38.8% or Baht 110.2 million from the same period last year, which was reported at Baht 284.3 million. This is primarily due to:

Revenue

3FWFOVFÇ°GSPNÇ°TBMFTÇ°BOEÇ°TFSWJDFTÇ°BUÇ°UIFÇ°FOEÇ°PGÇ°ĹłTDBMÇ°ZFBSÇ°%FDFNCFSÇ° Ç° Ç°BNPVOUFEÇ°UPÇ°#BIUÇ° Ç°.JMMJPO Ç° a net increase of Baht 649.1 Million comparing to 2012, or at 23.1%, which could be separately explained as per each business group as follows:

MEDIA REVOLUTIONIST

(Unit : Bt. Million) Revenues 4GXGPWG HTQO OGFKC 4GXGPWG HTQO OWUKE FKUVTKDWVKQP 4GXGPWG HTQO UJQYDK\ 4GXGPWG HTQO QVJGT UGTXKEGU

Year 2012 Year 2013

Total sales and services income

Cost of sales and services

Gross profit 1VJGT KPEQOG

Gross profit before expenses Selling and administrative expenses and other expenses

Profit before finance costs and income tax (KPCPEG EQUVU

Profit before income tax +PEQOG VCZ

Profit and comprehensive income for the years 0QP EQPVTQNNKPI KPVGTGUVU

115

Change

Profit and comprehensive income for the years Attributable to the Owner of the Company

284.3

394.5

38.8%

Earnings per share Attributable to the Owner of the Company (Baht)

0.3256

0.4364

34.0%

Revenue from Media Business Revenue from media business consisted of revenues from the television, and radio media business, and in 2013 the Company registered revenue from media business at Baht 1,986.3 Million, an increase from 2012 at the amount of Baht 793.3 Million, or at 66.5%.

116

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Television Media Business:

Satellite Television Business : Ratio of revenue from the satellite television business to the total revenue from sales and services was at 29.7%, an increase from last year of 20.1% due to increasing revenue from the advertising sales. The increase was from additional advertising spaces in various forms, quality development of contents, NPEJĹłDBUJPOTÇ°PGÇ°UIFÇ°DIBSUÇ°BOEÇ°TUZMFÇ°PGÇ°UIFÇ°QSPHSBNTÇ°JOÇ°PSEFSÇ°UPÇ°BQQFBMÇ°BOEÇ°BUUSBDUÇ°NPSFÇ°BVEJFODFÇ°BOEÇ°JODMVEJOHÇ° adjustment on sales strategy in correspondence with the changing style of programs. Additionally, external promotional activities of the channels were arranged so that audiences would be able to participate more with the Company. Popular programs in each channel were such as the “Bun Therng 108â€?, and “Park Pongâ€? program, and new dramas broadcasted this year were “ Gar Kup Hongâ€?, “Kaow Nok Narâ€?, “Nang Marnâ€?, “Wiwarr Pachartaekâ€?, and “Poochana Sibtittâ€? from “Channel 8â€?; the “Bun Therng Mue Thiengâ€?, and “Sod Chuenâ€? programs from “Sabaidee TVâ€?, and “Kon Dung Nung Clearâ€?, and “Hi Entertainâ€? programs from “Channel 2â€?, etc.

In 2014, “Star Max� channel applies the rebranding strategy by changing its name from “Star Max� to “Channel 2� to make it easy for audiences to remember.

Sport Rights Management: The Company’s revenue on Sport Right management came from the live broadcasting of Spanish football league, the highest league in Spain, or the “Primera Divisionâ€?, or generally known as the “La Ligaâ€?, the “Copa Del Rayâ€? football competition, and home matches of the national Spanish football team in the RVBMJĹłDBUJPOÇ°SPVOETÇ°PGÇ°UIFÇ°'*'"Ç°8PSMEÇ°$VQÇ° Ç°Ç°3BUJPÇ°PGÇ°JUTÇ°SFWFOVFÇ°UPÇ°UPUBMÇ°SFWFOVFÇ°GSPNÇ°TBMFTÇ°BOEÇ°TFSWJDFTÇ°XBTÇ° at 10.6%, an increase from last year of 2.5% in which the main revenue came from sales of the “Sun Boxâ€? set-top boxes, other revenues were from advertising sales, bundling sales, and sublicensing sales, etc.,

Radio Media Business In 2013, ratio of radio media business to total revenue from sales and services was at 16.0%, an increase from last year of 14.2%. Revenue of the radio media business generated from operation of 3 stations i.e., “COOL Fahrenheit 93�, “Sabaidee Radio 88.5�, and “COOL Celsius 91.5� (started broadcasting from end of 1st qtr. 2013), while the other remaining stations “COOL Fahrenheit 93�, “Sabaidee Radio 88.5� operated in 2012 (started broadcasting in 3rd qtr. 2012).

Revenue from radio media business in 2013 showed an increased amount from 2012 due to increasing advertising SBUFǰPGǰUIFǰĜ$00-ǰ'BISFOIFJUǰ ġǰXIJDIǰDPWFSFEǰIJHIǰVUJMJ[BUJPOǰSBUF ǰBOEǰSFWFOVFǰGSPNǰWBSJPVTǰBDUJWJUJFTǰPGǰUIFǰ station. This also included increasing revenue from an expansion to cover the international music and gradually receiving more popularity from audiences, who listened through radio, on-line media, and through applications.

Moreover, continuous activities’ arrangement from the channels on the purpose of public relations, protecting the customers’ base, and allowing audiences to participate with the channels, had received good responses from customers and listeners of the programs. Main activities for this year were “Cool Outing 8�, “Cool Outing Special�, “Ink Eat Around The World� from “COOL Fahrenheit 93�, “Cool Sensation�, “7 Gorgeous�, “I Like COOL Celsius�

GSPNÇ°Äś$00-Ç°$FMTJVTÇ° ġ Ç°BOEǰĜǰ,SVOHOVOHÇ°/BJDIFFXJUǰĹǰ/FSBNJUDIPNFÇ°/FSBNJUGVOOÇ°JOÇ°64"ġ Ç°Äś$IVOUBOBÇ°1BSUZġ Ç° “FungSabaidee Meesuppâ€?, “ Sabaidee Radio Fan clubâ€? from “Sabaidee Radio 88.5â€?.

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117

At present, the “COOL Fahrenheit 93� station is still ranked as number one in the easy listening group after a long period of time, and “Sabaidee Radio 88.5� station starts gradually receiving good response and is ranked in high ranking position from the “Nielsen Media Research�.

Revenue from Music Distribution Business Revenue from music distribution business consisted of revenue from physical sales, digital business, and copyright collection. In 2013, the Company generated revenue from music business at Baht 777.2 Million, a decrease from last year of Baht 106.0 Million, or at 12.0%, and ratio of revenue from music distribution to total revenue from sales and services was at 22.5%, a decrease from last year of 31.4% due mainly from reducing income from NVTJDǰEPXOMPBEJOH ǰ)PXFWFS ǰNVTJDǰTUSFBNJOHǰTFSWJDFǰUISPVHIǰUIFǰĜ%FF[FSġǰBQQMJDBUJPOǰPOǰĜ%UBDġǰNPCJMFǰQIPOFǰ network that started its service at the end of last year, showed revenue growing trend which resulted from increasing membership number that grew in correspondence with popularity of its type of service, and the growing trend of the 3G mobile phone users. Moreover, revenue from physical sales showed a declining trend resulting from decreased quantity on introduction of the main albums which was in correspond with changing consumers’ behaviour in the market.

Revenue from Show Business 3FWFOVFÇ°GSPNÇ°UIFÇ°TIPXCJ[Ç°CVTJOFTTÇ°DPOTJTUFEÇ°PGÇ°SFWFOVFTÇ°GSPNÇ°DPODFSUÇ°PSHBOJ[BUJPOT Ç°BOEÇ°NBSLFUJOHÇ°BDUJWJUJFT Ç° BSUJTUTÄ´Ç°NBOBHFNFOU Ç°BOEÇ°QSPEVDUJPOÇ°DPOUSBDUT Ç°*OÇ° Ç°SFWFOVFÇ°GSPNÇ°UIFÇ°TIPXCJ[Ç°CVTJOFTTÇ°BNPVOUFEÇ°UPÇ°#BIUÇ° 692.6 Million, a decrease of Baht 26.3 Million from last year, or at 3.7%, and ratio of its revenue to total revenue from sales and services was at 20.0%, a decrease from last year of 25.6%. The main cause was from the decreased JOÇ°SFWFOVFÇ°PGÇ°UBJMPSÇ°NBEFÇ°FWFOUTÇ°XIJDIÇ°TIPXFEÇ°SFEVDJOHÇ°OVNCFSÇ°PGÇ°UIFÇ°ĹłOJTIFEÇ°DPOUSBDUTÇ°XIJMFÇ°SFWFOVFÇ°GSPNÇ° BSUJTUÇ° NBOBHFNFOUÇ° BOEÇ° NBSLFUJOHÇ° BDUJWJUJFTÇ° TIPXFEÇ° JODSFBTJOHÇ° ĹłHVSF Ç° $PODFSUTÇ° BOEÇ° NBJOÇ° BDUJWJUJFTÇ° PGÇ° UIFÇ° ZFBSÇ° XFSFÇ°TVDIÇ°BTÇ°Äś34Ç°.FFUJOHÇ°$PODFSUÇ°3FUVSOÇ° ġ Ç°Äś4IPSUÇ°$IBSHFÇ°4IPDLÇ°3PDLÇ°3FUVSOÇ°$PODFSUġ Ç°Äś,BNJLB[FÇ°,Ç°'JHIUÇ° Concertâ€?, “Looktung Festival Year 3â€?, “Sabaidee Sunjorn Year 4â€?, “Thai Life Insurance Sunjorn Concertâ€?, “You Wonder Tripâ€?, “You Tour Your Schoolâ€?, “Miss You Concertâ€?, and “Dara Star Max Concertâ€?, etc.

Cost of Sales and Services

Cost of sales and services in 2013 amounted to Baht 2,109.3 Million, an increase of Baht 357.7 Million from 2012, or at 20.4%, which was due mainly from increasing cost of media business both from television and radio media. Cost increasing from the television media came from the development in quality and production of various contents in dramas, game shows, news programs, including variety shows so that they would have solid and attractive contents readily for increasing audience base as well as continued recording of sport content right fees as cost of sales since 2012 onwards. Meanwhile, cost increasing from the radio media came from management of 1 additional station “COOL Celsius 91.5� which started its operation since late in the 1st quarter onwards.

118

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Selling and Administrative Expenses, Other Expenses, and Financial Cost

Selling and administrative expenses, and other expenses for the year 2013 was at Baht 881.4 Million, an increase of Baht 164.6 Million from 2012, or at 23.0%, which was from the increase of sales expenses in relation to the JODSFBTFEÇ°NFEJBÇ°SFWFOVF Ç°BTÇ°XFMMÇ°BTÇ°UIFÇ°JODSFBTFÇ°JOÇ°BENJOJTUSBUJWFÇ°FYQFOTFTÇ°GSPNÇ°UIFÇ°QBSUTÇ°PGÇ°UIFÇ°ĹłYFEÇ°BOEÇ°WBSJBCMFÇ° expenses in relation to business expansion this year.

Finance costs in 2013 amounted to Baht 17.3 Million, a net increase from last year of Baht 9.8 Million, or at 130.3%, XIJDIÇ°XBTÇ°EVFÇ°UPÇ°MPBOTÇ°GSPNÇ°UIFÇ°ĹłOBODJBMÇ°JOTUJUVUJPOÇ°UPÇ°CFÇ°VTFEÇ°BTÇ°XPSLJOHÇ°DBQJUBMÇ°BOEÇ°QBZNFOUTÇ°POÇ°WBSJPVTÇ° contents of satellite television channels.

(SPTTÇ°1SPĹłUÇ°.BSHJO Ç°/FUÇ°1SPĹłUÇ°.BSHJOÇ°BOEÇ°3FUVSOÇ°0OÇ°&RVJUZÇ° 30&

(SPTTÇ°1SPĹłUÇ°.BSHJO /FUÇ°1SPĹłUÇ°.BSHJO Return on Equity (ROE)

2011 34.1% 6.8% 18.2%

2012 37.7% 9.9% 22.8%

2013 39.1% 11.3% 27.6%

'SPNÇ°UBCMFÇ°TIPXO Ç°UIJTÇ°JOEJDBUFEÇ°UIFÇ°$PNQBOZÇ°IBTÇ°BOÇ°JODSFBTFEÇ°HSPTTÇ°QSPĹłUÇ°NBSHJO Ç°OFUÇ°QSPĹłUÇ°NBSHJO Ç°BOEÇ°SFUVSOÇ° on equity comparing to last year. These increments were mainly the result of growth in the satellite television media.

Assets Asset components

As at December 31, 2013, the Company had the total assets of Baht 2,986.2 million of which 58.5 % was current assets and 41.5 % was non-current assets.

Total assets in 2013 increased from 2012 by 16.9% which was mainly caused by increasing cash and cash equivalent at 82.4% which came from cash from operating activity. Moreover, land, building and equipment increased 19.5% GSPNǰJOWFTUNFOUǰNBJOMZǰJOǰPQFSBUJOHǰFRVJQNFOU ǰPGųDFǰEFDPSBUJPOǰBOEǰFRVJQNFOU ǰ0UIFSǰOFUǰBDDPVOUǰSFDFJWBCMFTǰ increased 15.8% in response with increased revenue and intangible assets – net increased 12.0% from the sport copyrights payment during the year.

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Quality of the Assets

Account receivables - other - net (Million Baht) Accounts receivable- Others-net Not Due Over Due : Less than 3 months 3 - 6 months 6 - 12 months More than 12 months Total Less Allowance for doubtful accounts Total Accounts receivable Others-net Accounts receivable Turnover (time) Average Debt Collection Period (day)

2011

2012

2013

325.3

387.7

487.7

232.0 54.3 5.8 62.0 679.4 (53.3) 626.1 4.90 75

184.2 41.7 37.8 54.5 705.9 (52.9) 653.0 4.35 84

240.9 8.8 18.5 36.2 792.1 (35.9) 756.2 4.81 76

As at December 31, 2011, 2012, and 2013, the Company had net account receivables from person or juristic person at amount of Baht 626.1 million, Baht 635.0 million, and Baht 756.2 million respectively. Amount of the increased account receivables in 2013 was because the Company had business expansion and higher income, thus, the account receivables had increased which was mainly from account receivables from normal trading activities in which the Company might have agreement in collecting some advanced payments, or giving the average credit terms in the period of 60 – 90 days depending on the type of products or services.

Consideration from the table of aging periods, most of the outstanding overdue payments over 80% were not due or less than 3 months overdue which were within the credit allowance of the Company. Moreover, the average trade receivables turnover ratio from the last 3 years was at 4 - 5 times which had the average collection period of 75 - 85 days and was close to the average credit term policy of the Company at about 60 - 90 days.

The Company had policy in recording allowance for doubtful accounts for customer with overdue payment JOÇ°PSEFSÇ°UPÇ°SFĹ´FDUÇ°POÇ°SJTLÇ°PGÇ°VOQBJEÇ°EFCU Ç°$POTJEFSBUJPOÇ°XPVMEÇ°CFÇ°VTFEÇ°POÇ°UPUBMÇ°BNPVOUÇ°PGÇ°VOQBJEÇ°BDDPVOUÇ°PGÇ° customer who might have payment problem and problem in debt collection by considering on the total amount of debts unpaid to the Company.

However, the Company had strict debt collection with debtors and would constantly reviewed on allowance for EPVCUGVMÇ°BDDPVOUTÇ°JOÇ°FWFSZÇ°BDDPVOUJOHÇ°QFSJPETÇ°JOÇ°PSEFSÇ°UPÇ°SFĹ´FDUÇ°UIFÇ°SFNBJOJOHÇ°BDDPVOUÇ°SFDFJWBCMFTÇ°JOÇ°UIFÇ°ĹłOBODJBMÇ° statement with the expected receiving amount. In 2011, 2012 and 2013, average allowance for doubtful accounts was at 5% - 8% of account receivables.

120

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Inventory - net (Million Baht) Inventories (Less) Allowance for decline in value of inventory Inventories - net

2011 68.1 (30.7) 37.4

2012 173.7 (33.1) 140.6

2013 84.0 (20.7) 63.3

Inventory Turnover (time)

24.65

14.49

16.37

15

26

23

Average Number of Days Sales (day)

As at December 31, 2011, 2012, and 2013, the Company’s net inventory amounted to Baht 37.4 million, 140.6 million, and 63.3 million respectively as the remaining inventory in 2013 decreased from 2012 was mainly from selling of the satellite signal receiver “Sun Box”.

At the end of 2013, main inventory consisted of product type of musical discs i.e. CD, VCD, and DVD at 25%, work in progress such as drama, concert, and marketing activity, and contract production, etc., at 55%, and the satellite signal receiver “Sun Box” at 15%.

The above table indicated that the Company’s average sales period for the last 3 years was at 15 - 30 days as majority of work in progress did not have a long period of delivery time such as drama, concert, and marketing activity, etc. Moreover, the Company had the policy in managing inventory at suitable level as well as controlling the level of products to be at the suitable requirement of consumers. For the unsold and remaining inventory in the warehouse, or work in progress with long delivery period, the Company had policy in constantly reviewing UIFǰFYQFDUFEǰOFUǰWBMVFǰPGǰJOWFOUPSZǰJOǰFWFSZǰBDDPVOUJOHǰQFSJPETǰJOǰPSEFSǰUPǰSFŴFDUǰUIFǰSFBMǰFYQFDUFEǰWBMVFǰGPSǰ sale in accordance with the ever changing economic and market situations. In the year 2011, 2012, and 2013, the Company had average allowance for inventory at 20% - 45% of total remaining inventory which was mainly for product type of musical discs i.e. CD, VCD, and DVD. Intangible assets - net (Million Baht) Intangible assets (Less) Allowance for impairment of assets Intangible assets - net

2011 739.0 (269.8) 469.2

2012 924.9 (281.6) 643.3

2013 1,031.1 (310.3) 720.8

As at December 31, 2011, 2012, and 2013, the Company’s net intangible assets were Baht 469.2 million, Baht 643.3 million, and Baht 720.8 million respectively as value of the intangible assets in 2013 increased from 2012 was mainly from payment for sport copyrights.

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At the end of 2013, the intangible assets consisted of sport copyrights of more than 50% while the remaining was from copyrights of movies, dramas, etc.

From the above table, allowance for impairment at the end of 2011, 2012, and 2013 amounted to Baht 269.8 million, Baht 281.6 million, and 310.3 million respectively which came mainly from copyrights of music, and movies with long duration of time. The Company had the policy to constantly review the expected net value in every BDDPVOUJOHǰQFSJPETǰJOǰPSEFSǰUPǰSFEVDFǰSJTLǰGSPNǰWBMVFǰTIPXOǰJOǰUIFǰųOBODJBMǰTUBUFNFOUǰUIBUǰNJHIUǰCFǰIJHIFSǰUIBOǰ BDUVBMǰSFDFJWJOHǰWBMVFǰJOǰBDDPSEBODFǰXJUIǰUIFǰFDPOPNJDǰCFOFųUTǰFYQFDUFEǰUPǰCFǰSFDFJWFEǰJOǰUIFǰGVUVSF

Liquidity $BTIÇ°Å´PX (Million Baht) Cash Flows From Operating Activities Cash Flows From Investing Activities Cash Flows From Financing Activities Net Increase (Decrease) in Cash and cash equivalents Cash and cash equivalents at the ending of the year

2011 237.1 (357.2) 37.8 (82.2) 282.2

2012 211.9 (388.0) 207.8 31.7 313.6

2013 984.3 (467.9) (257.8) 258.5 572.1

For the year ending December 31, 2013, the Company’s net cash and cash equivalents was at Baht 572.1 million, BOǰ JODSFBTFǰ PGǰ #BIUǰ ǰ NJMMJPOǰ DPNQBSJOHǰ UPǰ UIFǰ QSFWJPVTǰ ZFBS ǰ 5IFǰ SFBTPOǰ GPSǰ JODSFBTFǰ JOǰ DBTIǰ ŴPXǰ GSPNǰ operating activities was from improved operating performance during the year.

However, in 2013, the Company had invested in the intangible assets with payments of sport copyrights including JOWFTUNFOUǰJOǰUIFǰPQFSBUJOHǰFRVJQNFOUǰXIJDIǰTIPXFEǰPWFSBMMǰQJDUVSFǰPGǰDBTIǰŴPXǰJOǰUIFǰJOWFTUJOHǰBDUJWJUJFTǰBUǰ#BIUǰ ǰNJMMJPO ǰ.PSFPWFS ǰEVSJOHǰUIFǰZFBS ǰQBZNFOUTǰIBEǰCFFOǰQBJEǰGPSǰUIFǰTIPSUǰBOEǰMPOHǰUFSNǰMPBOTǰGSPNǰųOBODJBMǰ institutions, including dividend payment to shareholders, while the Company received payments from the exercise PGǰXBSSBOUTǰ34 8 ǰUIBUǰSFTVMUFEǰJOǰDBTIǰŴPXǰGPSǰųOBODJOHǰBDUJWJUJFTǰBUǰ#BIUǰ ǰNJMMJPO

Key Liquidity Ratios (Million Baht) Liquidity Ratio (time) Quick Ratio (time) Average Debt Collection Period (day) Average Number of Days Sales (day) Credit Period (day) Cash Cycle (day)

2011 1.83 1.59 75 15 42 48

2012 1.39 1.12 84 26 40 70

2013 1.32 1.20 76 23 29 70

122

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

Overall picture of the Company’s liquidity during the past 3 years showed current assets at higher level than the current liabilities, average debt collection period was in accordance with the Company policy, and product sales or delivery of contracts to customers including debt payments were in accordance with normal business operation PGǰUIFǰ$PNQBOZ ǰ5IVT ǰUIFǰ$PNQBOZǰFOKPZFEǰDPOUJOVPVTǰDBTIǰŴPXǰBOEǰTVGųDJFOUǰXPSLJOHǰDBQJUBMǰGPSǰCVTJOFTTǰ operations.

However, due to expansion of the media business, the Company had to search for contents to add more variety UPÇ°UIFÇ°QSPHSBNT Ç°'PSÇ°DPOUFOUTÇ°XJUIÇ°IJHIÇ°JOWFTUNFOUÇ°DPTU Ç°UIFÇ°$PNQBOZÇ°TPVSDFEÇ°JUTÇ°ĹłOBODFÇ°GSPNÇ°UIFÇ°TIPSUÇ°BOEÇ°MPOHÇ° UFSNÇ°MPBOTÇ°GSPNÇ°ĹłOBODJBMÇ°JOTUJUVUJPOTÇ°UIBUÇ°XFSFÇ°TVJUBCMFÇ°UPÇ°UIFÇ°UZQFÇ°PGÇ°BTTFUTÇ°JODMVEJOHÇ°UIFÇ°VTFÇ°PGÇ°UIFÇ°$PNQBOZÄ´TÇ° working capital for the operation

Sources of Funds Liabilities, Shareholders’ Equity, and Debt to Equity Ratio (Million Baht) 4IPSU UFSNǰMPBOTǰGSPNǰųOBODJBMǰJOTUJUVUJPOT Current portion of long-term loan Long-term loans Other current liabilities Other non-current liabilities Total Liabilities Equity attributable to owners of the Company Debt to Equity Ratio (time)

2011 664.7 33.1 697.8 1,200.8 0.58

2012 86.0 240.0 81.0 765.6 81.0 1,253.6 1,296.2 0.97

2013 286.9 1,035.3 93.8 1,416.0 1,567.3 0.90

Total liabilities for 2011, 2012, and 2013 amounted to Baht 697.8 million, 1,253.6 million and Baht 1,416.0 million respectively while the increased liabilities in 2013 when comparing to 2012 were from expenses payable and the unearned revenue which was normal transaction of the Company.

5IFÇ°TIPSUÇ°BOEÇ°MPOHÇ°UFSNÇ°MPBOTÇ°GSPNÇ°ĹłOBODJBMÇ°JOTUJUVUJPOTÇ°JOÇ° Ç°XFSFÇ°NBJOMZÇ°GSPNÇ°UIFÇ°TQPSUÇ°DPQZSJHIUTÄ´Ç°QBZNFOUTÇ° and the Company was able to comply with conditions of the loan agreements with all loan payments paid in due times. In 2013, the Company made repayments for short and long term loans totaled Baht 351.0 million.

As at December 31, 2011, 2012, and 2013, the Company’s shareholders’ equity of the majority interest were Baht 1,200.8 million, Baht 1,296.2, and Baht 1,567.3 million respectively. The shareholders’ equity of the majority interest in 2013 increased from the year 2012 due to payments from the exercise of warrants RS-W2 at Baht 148.1 million including the increase from business operation during the year while dividend payment to shareholders was at Baht 271.5 million.

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123

From the above statement, majority of the Company’s capital structure came from capital of the shareholders, BOEǰPQFSBUJOHǰQFSGPSNBODFǰPGǰUIFǰ$PNQBOZ ǰ4PVSDFǰPGǰGVOEǰGSPNǰMPBOTǰUISPVHIǰųOBODJBMǰJOTUJUVUJPOTǰXFSFǰNBJOMZǰ happened from starting of business expansion as it was necessary to have more investment fund. During the past ZFBST ǰUIFǰ$PNQBOZǰXBTǰBCMFǰUPǰNBOBHFǰJUTǰųOBODFǰBOEǰTUSJDUMZǰDPNQMZǰXJUIǰDPOEJUJPOTǰJOǰUIFǰMPBOǰDPOUSBDUT

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By entering into the digital television business, the Company has opened opportunity to expand business for GVSUIFSǰHSPXUI ǰ5IFǰ$PNQBOZǰSFBMJ[FTǰUIBUǰUIJTǰUFMFWJTJPOǰDIBOOFMǰXJMMǰQFOFUSBUFǰJOUPǰBVEJFODFTǰJOǰBMMǰQMBUGPSNT ǰ and help in enhancing the revenue earning potential by operating the television media business as well as building long term business stability to the overall business group of the Company. Additionally, this will also increase competitive ability into par with large business operators in the same industry. Moreover, by having own various quality contents such as dramas, movies, television programs and music, etc., personnel with experiences in television media business for a long time, supporting units from programs’ production, artist management, radio stations to units for arrangement of marketing activities, thus, the Company has gain good advantages in business DPNQFUJUJPO ǰ5IJTǰPQFOTǰHPPEǰPQQPSUVOJUZǰGPSǰUIFǰ$PNQBOZǰJOǰSFDFJWJOHǰBEEJUJPOBMǰCFOFųUǰBOEǰSFXBSEǰJOǰUIFǰGVUVSF However, growth in the media business may receive impact from some risks such as risk from political unrest, household spending, allocation of the advertising budget, intense competitive situation in the television media industry, and rapidly changing of the popularity trend and consumers’ behavior, etc. These are factors that may SFŴFDUǰJNQBDUǰUPǰUIFǰPWFSBMMǰQJDUVSFǰPGǰUIFǰUFMFWJTJPOǰNFEJBǰCVTJOFTT ǰ5IFǰ$PNQBOZ ǰUIFO ǰSFBMJ[FTǰUIPTFǰSJTLTǰUIBUǰ may occur and has planned measures in dealing with the unusual events, including adjustment of various strategies such as cost management during economic recession, adjustment of the programming chart, changing of program TUZMF ǰFUD ǰ#ZǰIBWJOHǰDBQBCMFǰQFSTPOOFMǰXJUIǰMPOHǰFYQFSJFODFTǰJOǰUIFǰNFEJBǰCVTJOFTT ǰUIFǰ$PNQBOZǰJTǰDPOųEFOUǰJOǰ NBOBHJOHǰUIFǰSJTLT ǰBOEǰSFEVDJOHǰJNQBDUTǰUIBUǰNBZǰIBWFǰBOZǰFGGFDUǰPOǰUIFǰCFOFųUǰPGǰUIFǰ$PNQBOZ

Professional Fee

a) Audit Fee RS Group of Companies paid the audit fee for the year 2013 and 2012 in the amounts of Baht 2.7 million and Baht 2.5 million respectively. b) Others (Non-Audit Fee) - None -

124

ANNUAL REPORT 2013 RS PUBLIC COMPANY LIMITED

17

Financial Statement

MEDIA REVOLUTIONIST

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Independent Auditor’s Report To the Shareholders of RS Public Company Limited *ǰIBWFǰBVEJUFEǰUIFǰBDDPNQBOZJOHǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰPGǰ34ǰ1VCMJDǰ$PNQBOZǰ-JNJUFEǰBOEǰJUTǰ subsidiaries, and of RS Public Company Limited, respectively, which comprise the consolidated and separate statement of ųOBODJBMǰQPTJUJPOǰBTǰBUǰ%FDFNCFSǰ ǰ ǰUIFǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰTUBUFNFOUTǰPGǰDPNQSFIFOTJWFǰJODPNF ǰDIBOHFTǰ JOǰFRVJUZǰBOEǰDBTIǰŴPXTǰTUBUFNFOUTǰGPSǰUIFǰZFBSǰUIFOǰFOEFE ǰBOEǰBǰTVNNBSZǰPGǰTJHOJųDBOUǰBDDPVOUJOHǰQPMJDJFTǰBOEǰPUIFSǰ notes.

Management’s Responsibility for the Consolidated and Separate Financial Statements .BOBHFNFOUǰJTǰSFTQPOTJCMFǰGPSǰUIFǰQSFQBSBUJPOǰBOEǰGBJSǰQSFTFOUBUJPOǰPGǰUIFTFǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰ in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary UPǰFOBCMFǰUIFǰQSFQBSBUJPOǰPGǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰUIBUǰBSFǰGSFFǰGSPNǰNBUFSJBMǰNJTTUBUFNFOU ǰ whether due to fraud or error.

Auditor’s Responsibility .ZǰSFTQPOTJCJMJUZǰJTǰUPǰFYQSFTTǰBOǰPQJOJPOǰPOǰUIFTFǰDPOTPMJEBUFEǰBOEǰTFQBSBUFǰųOBODJBMǰTUBUFNFOUTǰCBTFEǰPOǰNZǰBVEJU ǰ*ǰ conducted my audit in accordance with Thai Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate ųOBODJBMǰTUBUFNFOUTǰBSFǰGSFFǰGSPNǰNBUFSJBMǰNJTTUBUFNFOU "OǰBVEJUǰJOWPMWFTǰQFSGPSNJOHǰQSPDFEVSFTǰUPǰPCUBJOǰBVEJUǰFWJEFODFǰBCPVUǰUIFǰBNPVOUTǰBOEǰEJTDMPTVSFTǰJOǰUIFǰųOBODJBMǰ statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material NJTTUBUFNFOUǰPGǰUIFǰųOBODJBMǰTUBUFNFOUT ǰXIFUIFSǰEVFǰUPǰGSBVEǰPSǰFSSPS ǰ*OǰNBLJOHǰUIPTFǰSJTLǰBTTFTTNFOUT ǰUIFǰBVEJUPSǰ DPOTJEFSTǰJOUFSOBMǰDPOUSPMǰSFMFWBOUǰUPǰUIFǰFOUJUZĴTǰQSFQBSBUJPOǰBOEǰGBJSǰQSFTFOUBUJPOǰPGǰUIFǰųOBODJBMǰTUBUFNFOUTǰJOǰPSEFSǰUPǰ design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation PGǰUIFǰųOBODJBMǰTUBUFNFOUT *ǰCFMJFWFǰUIBUǰUIFǰBVEJUǰFWJEFODFǰ*ǰIBWFǰPCUBJOFEǰJTǰTVGųDJFOUǰBOEǰBQQSPQSJBUFǰUPǰQSPWJEFǰBǰCBTJTǰGPSǰNZǰBVEJUǰPQJOJPO Opinion In my opinion, the consolidated and separate financial statements referred to above fairly, in all material respects, the financial position as at December 31, 2013, and the financial performance and cash flows for the year then ended of RS Public Company Limited and its subsidiaries, and of RS Public Company Limited, respectively, in accordance with Thai Financial Reporting Standards.

Other matter 8JUIPVUǰRVBMJGZJOHǰNZǰPQJOJPO ǰ*ǰESBXǰBUUFOUJPOǰUPǰOPUFTǰ ǰBOEǰ ǰUPǰUIFǰųOBODJBMǰTUBUFNFOUTǰEFTDSJCJOHǰUIFǰFGGFDUǰPGǰUIFǰ $PNQBOZǰBOEǰJUTǰTVCTJEJBSJFTǰBEPQUJPOǰGSPNǰ+BOVBSZǰ ǰ ǰPGǰDFSUBJOǰOFXǰBDDPVOUJOHǰQPMJDJFT ǰ5IFǰDPSSFTQPOEJOHǰųHVSFTǰ QSFTFOUFEǰBSFǰCBTFEǰPOǰUIFǰBVEJUFEǰųOBODJBMǰTUBUFNFOUTǰBTǰBUǰBOEǰGPSǰUIFǰZFBSǰFOEFEǰ%FDFNCFSǰ ǰ ǰBGUFSǰNBLJOHǰUIFǰ adjustments described in notes 4.

(Wimolsri Jongudomsombut) $FSUJųFEǰ1VCMJDǰ"DDPVOUBOU Registration No. 3899 Karin Audit Company Limited Bangkok February 26, 2014

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