1 MD&A 2Q 2018 (ended 30 June 2018) MASTER AD PLC MANAGEMENT DISCUSSION & ANALYSIS 2Q 2018 6 AUG 2018 MEDIA INDUSTRY In recent years, advertising industry has witnessed the shift in the media

estate business and thus the Company has to revise its strategy and target group. The year 2017 marks “The Year of Shift”. First of all, the target customers of the Company have been changed from middle to

. Sales from dessert café 206.64 96% 191.94 97% 8% 606.44 97% 517.40 97% 17% 2. Catering/ OEM/ sale via head office 8.49 4% 3.13 2% 171% 14.09 2% 7.84 1% 80% Total sales 215.13 99% 195.07 99% 10% 620.53 99

, the Company and its subsidiaries recorded total sales of Baht 1,222 million, a decrease of 6% YoY, occurred from a decline in Domestic Branded sales. This decrease was mainly from the food service

declared as the “Year of Shift”. It is the opportunity for the organization, high-ranking executives and staff to revise the business model in order for the organization to achieve stable growth and the goal

% YoY to THB 14,125mn. Meanwhile, Outdoor media– segment which MACO focuses on – bucked the trend, increased by 12.8% YoY to THB 6,391mn. In recent years, advertising industry has witnessed the shift in

– continued to buck the trend, OOH media with a 13.1% market share, increased by 7.0% to THB 9,805mn1. OOH media continues to benefit from the structural shift in the media industry, the ongoing trend of people

3,169mn. OOH media continues to benefit from the structural shift in the media industry and people’s behavior to spend more time outside. Online media, which reports on a yearly basis by the Digital

% Gain from exchange rate Other income 3.03 2.10 0.94 45% Total revenues 295.72 233.17 62.55 27% Cost of sales and services 208.23 159.63 48.60 30% Gross profit 84.46 71.44 13.01 18% Gross profit margin 29

café 202.52 96.80 171.51 97.37 18.08 399.80 97.33 325.45 97.46 22.85 2. catering/ OEM/ sale via head office 3.46 1.65 2.45 1.39 41.22 5.61 1.37 4.71 1.41 19.11 Total sales 205.98 98.46 173.96 98.76 18.41