Page 101 - 56-1 One Report 2022 EN

Part 1 Business Operation and Operating Performance

4. Management’s Discussion & Analysis (MD&A)

Investors may study the Company’s consolidated financial statements, adjusted financial data, the summary of
operating data in previous years together with the notes to the financial statements and the contents presented on
this Annual Registration Statement.
 Performance Overview

In 2022, The Company recognized the core profit (profit attributable to the owner of the Company before unrealized
gain (loss) on the exchange rate of the Company and joint ventures and before extra items) at Baht 527 million,
increased by 995.3% compared to that of 2021 of Baht 48 million. Despite the decrease of revenue from satellite
and related services following the decrease in Thai broadcast customers, especially from government entities, the
cost of services also decreased because of the structural change in operating costs after the concession ended,
which resulted in a significant increase in the core profit. The Company had ending cash and cash equivalents,
including the current financial assets, at the end of 2022 of Baht 5,848 million, which increased by 19.3% compared
to Baht 4,902 million at the end of 2021, due to the increase in operational cash flow.
THCOM’s revenue from sales and service for 2022 was Baht 2,927 million, decreased by 11.4% from Baht 3,303
million for 2021 due to the decrease in revenue from Thai broadcast customers, together with the decrease of
International broadband clients. However, the cost of sales and services for 2022 was Baht 1,500 million, decreased
by 36.1% compared to Baht 2,349 million for 2021 due to the decrease of satellite depreciation and concession fee
after concession ended.

The Company reported a net profit of Baht 42 million for 2022, or Baht 0.04 per share, reflecting a decrease of
70.7% compared to the previous year's net profit of Baht 144 million. The main reasons for this decline were:

 In Q3/2022, THCOM recognized the impairment of the satellite of Baht 259 million, resulting from the
general downtrend of the broadcast industry, together with the delay in applying foreign landing right
license due to changes in the regulatory process, which caused the shift of transponder sales to be later
than the original plan.
 The net foreign exchange gain for 2022 was Baht 120 million, which decreased by 67.6% from Baht 369
million for 2021

 The share of profit (loss) of investment in subsidiaries and joint ventures for 2022 was Baht (306) million,
the net loss increased by 14.6% compared to the loss of Baht (267) million for 2021. LTC’s revenue for
2022 has grown from that of 2021 and continued generating operating profit. The loss was mainly from the
depreciation of the Lao Kip against the US Dollar, resulting in a loss from marked-to-market of its US Dollar
liabilities. The depreciation of the Lao Kip against the US Dollar significantly fluctuated during 2022.
However, it has become more stable during December 2022 and continues to January 2023.

 Business Overview
Business of providing satellite services and related services

The awards for the Orbital Slot Auction Package bidding

On January 18, 2023, the Office of the National Broadcasting and Telecommunications Commission (NBTC)
announced that Space Tech Innovation Company Limited, a wholly-owned subsidiary of THCOM, has won 2 sets
of the Orbital Slot Packages, which were Package 2 at 78.5 degrees East and Package 3 at 119.5 and 120 degrees
East. The auction price (excluding VAT) for the slot 78.5 degrees East was Baht 380 million, whereas that of slot
119.5 and 120 degrees East was Baht 417 million.

Part 1 Page 87