Page 57 - Mono Technology Public Company Limited : Annual Report 2014 EN

Risk Factors

The company adjusted Risk Management strategy, for risks that may happen to core and brand-new
businesses, to be prepared for a rapid business expansion. Risk Management Committee, with an important
role to formulate the policy and to guideline important Risk Management strategy for operation, is responsible
for monitoring and forestalling risks at appropriate level as well as to submit any report on the Companys risk
management to the Board of Directors regularly. Key risk factors can be divided as follows;

1.Risk from unexpectedly lower ROI on Digital TV business in initial phase

Digital TV business is Mono Groups new division which requires a massive amount of capital investment
on DTTV license fee, devices, studio construction and decoration, program production, miscellaneous expenses
including local and international content license whereas advertising revenues were previously less profitable
as time was needed to build an audience base and gain popularity. The National Broadcasting and Telecom
munications Commission (NBTC) held an auction for the national commercial digital terrestrial television license for
24 channels instead of 6 previous channels on analog television, thus; product owners and media agencies were
presented with a wider range of advertisement channels. The first half of year 2014 showed a sign of economic
fluctuations and political conflict that affected in an economic downturn in general. This had a direct impact on
consumer confidence on their spending and investment behavior, similarly; the same result went to the advertisement
industry. A report by Thailand Development Research Institute (TDR) estimated that this repercussion would be
ongoing until 2015 due to the mentioned factors and would return a risk from lower ROI unexpectedly, which is
likely to affect the companys overall performance.

Nevertheless, gaining an audience base and popularity is considered mandatory to ensure media buyers
that any advertising products and services reach the target groups as planned. MONO29 realizes the importance
of content acquisition and content production that capably reaches the target audience the most as well as of
executing marketing campaigns to launch the channel all over the country to create the brand awareness. TV
program adjustment should be put continually in schedule to compete with the others in this heated competition
at all time.

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