Master Public : Management Discussion and Analysis Quarter 1 Ending 30 Jun 2022

	13 May 2019
MASTER AD PUBLIC COMPANY LIMITED	10 AUGUST 2022
MANAGEMENT DISCUSSION & ANALYSIS 1Q 2022/23 ENDED 30 JUNE 2022

BUSINESS HIGHLIGHTS 1Q 2022/23

MACO got off to a good start to the first quarter of fiscal year of 2022/23, recording revenue of THB 574mn and net profit of THB 34mn.

• Total revenue was THB 574mn, increased by 17.9% YoY. The increase was mainly from an organic growth in all of the Company's operation.
  o Advertising revenue increased by 7.1% YoY to THB 85mn. o System Integration increased by 20.0% YoY to THB 489mn.
• A net profit of THB 34mn with a net profit margin of 5.9%.

CONSOLIDATED P&L SNAPSHOT

THB (mn)	1Q 2021/22	4Q 2021/22	1Q 2022/23	QoQ (%)	YoY (%)
	(Restated)
Operating revenue	487	643	574	-10.7%	17.9%
Cost of sales	364	541	422	-21.9%	16.0%
Gross profit	123	102	151	48.0%	23.5%
SG&A	90	97	101	4.9%	13.0%
Share of profit (loss) from JVs & associates	(8)	3	7	118.0%	183.7%
EBITDA	259	70	117	69.6%	-54.9%
EBIT	36	19	68	266.8%	91.2%
Interest expenses	12	11	8	-27.5%	-32.7%
Tax	19	5	13	-342.3%	-31.5%
Net profit (loss) continued business	(1)	4	34	754.1%	4,287.5%
Net profit (loss) from discontinued business	95	(97)	-	n/a	-100.0%
Net profit (loss)	94	(93)	34	136.4%	-63.7%
Gross profit margin	25.2%	15.9%	26.4%
EBITDA margin	53.3%	10.7%	20.4%
Net profit (loss) continued business margin	-0.2%	0.6%	5.9%

REVENUE BY SEGMENTS (THB mn)

	1Q 2021/22	4Q 2021/22	1Q 2022/23	QoQ (%)	YoY (%)
	(Restated)
Advertising	80	69	85	22.3%	7.1%
System Integration	407	574	489	-14.8%	20.0%
Total Revenue	487	643	574	-10.7%	17.9%

% CONTRIBUTION TO TOTAL REVENUE

	1Q 2021/22	4Q 2021/22	1Q 2022/23
	(Restated)
Advertising	16.4%	10.9%	14.9%
System Integration	83.6%	89.1%	85.1%
Total Revenue	100.0%	100.0%	100.0%

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	13 May 2019
MASTER AD PUBLIC COMPANY LIMITED	10 AUGUST 2022
MANAGEMENT DISCUSSION & ANALYSIS 1Q 2022/23 ENDED 30 JUNE 2022

PERFORMANCE ANALYSIS (1Q 2022/23 vs 1Q 2021/22)

The global economy has continued to recover, thanks to the easing of restrictions to prevent COVID-19 pandemic and the reopening of borders, which led to the returning back to normalcy of business activities across the globe. As a result, the Company was able to make a good start of the first quarter of fiscal year 2022/23, recording operating revenue of THB 574mn, an increase of 17.9% YoY.

• Advertising revenue contributed 14.9% of total revenue or THB 85mn, increased by 7.1% YoY.
• System Integration revenue contributed 85.1% of total revenue or THB 489mn, increased by 20.0% YoY. This was mainly from more installation and maintenance projects.

The positive business performance led to higher cost of sales, which increased by 16.0% YoY to THB 422mn. Cost-to-salesratio slightly decreased from 74.8% to 73.6% in this quarter. As a result, gross profit margin increased to 26.4% from 25.2% in the same period of last year.

Selling, General and Administrative expenses ("SG&A") increased by 13.0% YoY to THB 101mn. However, SG&A to revenue ratio decreased from 18.4% to 17.7% due to revenue increasing faster than SG&A.

In this quarter, the Company recorded a share of profit from investment in joint ventures & associates of THB 7mn (prior year: share of loss THB 8mn). This was primarily from the recovery of business performance in both domestic and international markets.

As a result, the Company recorded net profit of THB 34mn with a net profit margin of 5.9%.

FINANCIAL POSITION

ASSETS

ASSETS BREAKDOWN		31 MAR 2022			30 JUN 2022
		(THB mn)		% out of total			(THB mn)		% out of total
Cash & cash equivalents and current investments	1,210	18.8%			1,079		17.1%
Trade & other receivables	252	3.9%			406		6.4%
Investment in joint venture and associates	2,408	37.5%			2,435		38.6%
Property, plant and equipment	442	6.9%			448		7.1%
Right-of-use assets	485	7.5%			459		7.3%
Goodwill and Intangible assets	641	10.2%			645		10.2%
Other assets	987	15.4%			845		13.4%
Total assets	6,425	100.0%			6,317		100.0%

Total assets as of 30 June 2022 was reported at THB 6,317mn, a decrease of 1.7% or THB 108mn from THB 6,425mn as of 31 March 2022.

Total current assets were THB 2,061mn, increasing by 4.2% or THB 83mn, primarily from an increase of 1) trade and other receivables of THB 154mn and 2) work in process of System Integration business THB 82mn. However, the increase was partially offset by a decrease in 3) cash & cash equivalents and current investments of THB 131mn.

Total non-currentassets stood at THB 4,256mn, decreasing by 4.3% or THB 191mn, primarily due to a decrease in investment in financial assets of THB 190mn.

Trade and other receivables were THB 406mn, an increase of 61.0% or THB 154mn from THB 252mn. As of 30 June 2022, the average collection period as at the end of this quarter was 63 days compared to 76 days as of 31 March 2022.

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										13 May 2019
	MASTER AD PUBLIC COMPANY LIMITED		10 AUGUST 2022
MANAGEMENT DISCUSSION & ANALYSIS 1Q 2022/23 ENDED 30 JUNE 2022
AGEING OF TRADE RECEIVABLES (THB mn)	31 MAR 2022			30 JUN 2022
Not yet due	102				125
Up to 3 months	21				72
3 - 6 months	19				10
6 - 12 months	7				11
Over 12 months	9				8
Total	158				226
Allowance for expected credit losses	2				2
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES AND EQUITY BREAKDOWN				31 MAR 2022			30 JUN 2022
			(THB mn)	% out of total		(THB mn)	% out of total
Short term loans from financial institutions			195	3.0%			195	3.1%
Trade and other payables			906	14.1%			962	15.2%
Advances received from employers and unearned revenue	300	4.7%			232	3.7%
Other current liabilities			91	1.4%			98	1.5%
Lease liabilities			469	7.3%			450	7.1%
Other non-current liabilities			198	3.1%			184	2.9%
Total liabilities			2,159	33.6%			2,121	33.6%
Shareholders' equity			4,266	66.4%			4,196	66.4%
Total liabilities and equity			6,425	100.0%			6,317	100.0%

Total liabilities were THB 2,121mn, decreasing by 1.8% or THB 38mn from THB 2,159mn as of 31 March 2022.

Total equity was THB 4,196mn, decreasing by THB 70mn or 1.6%. This was mainly attributed to a decrease in 1) other components of shareholders' equity of THB 158mn. Nevertheless, the decrease was partially offset by an increase in 2) non- controlling interests of the subsidiaries of THB 55mn and 3) retained earnings of THB 34mn.

CASH FLOW

As of 30 June 2022, the Company had net cash used in operating activities of THB 138mn. Net cash from investing activities was THB 7mn. Net cash used in financing activities was THB 12mn. The key components were cash paid for

1. lease liabilities of THB 17mn, 2) repayment of long-terms loans form financial institutions of THB 16mn and 3) interest expenses of THB 10mn. However, this was offset by cash received from 4) issuance of ordinary shares of THB 32mn.

3-MONTH CASH FLOW SNAPSHOT (THB mn)

1,210(138)

7

(12)*

1,079

Beginning cash	Cash flows used in	Cash flows from	Cash flows used in	Ending cash
(31 March 2022)	operating activities	investing activities	financing activities	(30 June 2022)

*Included translation adjustment of THB 12mn

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																13 May 2019
			MASTER AD PUBLIC COMPANY LIMITED		10 AUGUST 2022
		MANAGEMENT DISCUSSION & ANALYSIS 1Q 2022/23 ENDED 30 JUNE 2022
KEY FINANCIAL RATIOS
					1Q			1Q					31-Mar-			30-Jun-
					2021/22			2022/23					2022			2022
					(Restated)
	Profitability Ratios										Liquidity Ratios
	Gross profit	(%)		25.2%			26.4%			Current ratio	(times)	1.3			1.3
	Operating EBITDA	(%)		53.3%			20.4%			Quick ratio	(times)	1.1			1.1
	Net profit (incl.										Account receivable
	minority interest)	(%)		1.0%			8.2%			turnover	(times)	4.8			5.8
	Net profit	(%)								Average collection	(days)	76			63
		-0.2%			5.9%			period
	Return on equity	(%)		-20.6%			2.5%			Payable days	(days)	232			204
	Efficiency Ratios										Leverage Ratios
	Return on assets	(%)		-11.1%			1.7%			Liability to Equity	(times)	0.5			0.5
	Return on fixed	(%)		-118.0%			21.0%			Debt to equity	(times)	0.1			0.1
	assets
	Asset turnover	(times)	0.3			1.1

Remark:

• Financial ratios were calculated based on The Stock Exchange of Thailand's formula.
• Following to the disposal of 1) all of MACO's domestic billboard assets and ordinary shares in Multi Sign Company Limited and Comass Company Limited and 2) 75.0% in VGI Global Media (Malaysia) Sdn. Bhd., the Company had restated profit and loss statement in 2020/21. The statement of financial position only as of end of March 2021 had reflected the aforementioned disposal asset and investment. Therefore, the Company calculate the ratio, which related to statement of financial position in 1Q 2021/22 as an average of balance at the end of March 2021 and March 2022.

MANAGEMENT OUTLOOK

With the succession of our business restructuring in the previous year, MACO was able to generate net profit in 1Q 2022/23. To continue its ongoing success, the Company will resume to strengthen its existing media businesses whilst exploring new potential opportunities.

For our existing media business, MACO has an expansion plan to increase the presence of the Street Furniture media across the BTS' Gold Line and Saint Louis station, domestically. As for our media in international market, the Company plans to install additional billboard media within prime locations in Vietnam market. The System Integration business is expected to grow in accordance with the new installation and maintenance projects from the government and private sector. The Company is anticipating to see positive gains within its new digital-related business. This is derived from the joint venture between MACO and Yggdrazil Group Public Company Limited (YGG) which is expected to be established within 2Q 2022/23, where the Company will start recognising its performance in 3Q 2022/23 onwards. Lastly, MACO aims to find new business opportunities that could strengthen and enhance value of its existing business. The Company will announce to the investment community once progress has been made this year.

As the Thai economy gradually opens up, the Company is confident it has passed its downturn. With the availability of cash- on-hand and possibility to receive funding from an issuance and allocation of warrants no.4 (MACO-W4), MACO is well- equipped and in a strong financial position to maintain its momentum of success.

……………………………………………………….

Tamonwan Narintavanich

(Chief Financial Officer)

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