Management Discussion and Analysis Yearly Ending 31-Dec-2013 (Edit Template)

Management Discussion and Analysis Company name : JMT NETWORK SERVICES PUBLIC COMPANY LIMITED Year : 2013 Quarter : Yearly Ending : 31-Dec-2013 Note : IR57/001 February 20, 2014 Subject: Explanation for the change of over 20% in operating result of year ended 2013 To: The Committee and Manager Director The Stock Exchange of Thailand According to the meeting of board of directors, JMT Network Services Public Company Limited No. 1/2557 That held on February 20, 2014 had been approved the financial statements and operating results of the company and its subsidiaries for year ended December 31, 2013 that had been audited by the auditors of the company. The results can be summarized as follows: The operating results of company and its subsidiaries year ended 2013. The company's consolidated comprehensive profit amounted to Baht 75.08 million, an decrease of Baht 110.15 million or 31.84% over the last year (Baht 35.07 million). This was due to 1. The company's consolidated revenue for 2013 amounted to Baht 362.33 million, an decrease of Baht 393.74 million or 7.98 % over the last year (Baht 31.41 million). This was due to: - Revenue from distressed debt decreased from Baht 279.90 million (2012) to Baht 255.11 million (2013) or 8.85% over the last year (Baht 24.78 million) due to the amortization of Investment in debt acquisition in accounts receivable increase, which caused a reduction in revenue recognition. - Revenue from debt collection service in 2013 amounted to Baht 97.44 million. It decreased Baht 8.72 million or 8.21% over the last year due to decrease rate debt collection service. 2. In 2013 and 2012 the company's cost of sales are Baht 195.60 million and Baht 187.29 million, respectively. The employees due to increasingly support to buy more distressed debt and adjusting reap, the salaried employees. 3. In 2013 and 2012, the company's consolidate gross profit amounted Baht 166.73 million and Baht 206.45 million, respectively. or 19.24% over the last year due to Revenue from buying distressed debt decreased from the amortization of Investment in debt acquisition receivables increased and decrease rate of debt collection service. 4. In 2013 and 2012, the company's consolidated cost of sale and administrative amounted Baht 84.19 million and Baht 58.45 million, respectively. An increase of Baht 25.73 million or 44.03% over the last year due to the company had established a higher reserves, staff expenses ,depreciation of fixed assets and utilities increased. Please be informed accordingly. Yours faithfully, (Mr. Supot Wanna) Company Secretary This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.