Letter from the Chairman and Group CEO

Letter from the Chairman and Group CEO

Mr. Paiboon Damrongchaitham

Ms. Boosaba Daorueng
Group Chief Executive Officer

Dear Shareholders,

The year 2022 is another year that GMM Grammy Public Company Limited continues to operate amid challenges from the economic conditions of all countries, including Thailand, which is slowing down. The situation of Covid-19 has begun to unfold, but the impact on consumer behavior and the overall entertainment industry has inevitably decelerated. However, the Company is still determined to maintain its leadership in the music business and content production for various media. We have never stopped adapting and increasing revenue channels to strengthen the Group's business. The Company continues to focus on flexibility in adapting to situations to maintain competitiveness and create new business opportunities, which is the key to driving the Company's sustainability. In 2022, the Company generated total revenue of 5,319.7 million baht and a net profit of 166.4 million baht.

Currently, the music industry has entered the Second Wave, led by the growth of Digital Music Platforms or Music Streaming Platforms such as YouTube, Facebook, Spotify, Apple Music, Tencent Music, JOOX, etc. Digital disruption, which used to be a threat to the music business previously, has become the main source of income for more than 50% of the music business. The music business, also known as the Digital Music Business, is expected to play an ever-increasing role in the future. In addition, the Company also values creating a new generation of artists by establishing GMM Academy to raise the standard of artist training to meet international standards and to develop modern artists as sustainable careers. Another business that has returned to growth after the improvement of the Covid-19 situation is Showbiz. The Company, operating under the GMM SHOW, has organized 12 concerts and festivals, representing more than 280,000 audiences. All the above reflects the Company's ability to adapt in order to cope with the ever-changing business situation.

Other businesses of GMM Grammy Public Company Limited, such as the home shopping business, are also affected by the epidemic but still maintain a customer base and expand distribution channels well. As for the film business this year, four movies were released, with the highlight being "Love Destiny 2: The Movie," a co-investment between GDH and Broadcast Thai Television Co., Ltd. The movie is well-received by both domestic and international audiences bases, also named the nationally highest-grossing movie in 2022.

In addition to the determination to run a successful business, the Company has always valued conducting business under Good Governance and Business Ethics. Once again, the Company received the Thai listed companies' corporate governance assessment at the highest level of "excellent" or five stars for the 12th consecutive year from the Thai Institute of Directors (IOD). We commit to continue conducting business sustainably, including further development of management based on good governance to create positive results for society and the world in the long term.

On behalf of the Board of Directors, we would like to express our gratitude to those involved, shareholders, customers, business partners, financial institutions, governmental organizations, agency companies, artists, executives, and all employees. Everyone plays a significant role in helping the Company improve the quality of creation, production, service, and management, to create good returns for shareholders in the long run. We are ready to be a substantial force to continue sustainably developing the nation's media and entertainment industry.