3. Business Segments

There are 3 distinct business segments of Pico:

1)  Event marketing

2)  Museum and permanent exhibition

3)  Others

3.1 Product description and services rendered

3.1.1 Event marketing

Integrated event marketing and turnkey event and exhibition management
covers the entire communication program for a selected product. This
includes the conceptual design, drawing, production, related development
initiatives and installation of the finished design and the management
thereof.

Pico can offer all of these services to each link of the supply chain
e.g. the product owners, trade show organizers or event owner, event
organizers, show managers, project managers all the way down to the
event service providers like painting, electrician and utility services
and supportive logistics.

-   Event marketing

    -   Service description

  This is to provide a market communication tool to the product owner to
  directly reach his target customers. Services provided will vary
  depending on the client’s objectives e.g. to boost sale of products or
  merchandise or to launch new products/merchandise or to create an
  effective client relationship management. Normally, a specific and
  brief event is created in the format of a seminar, amusement program
  or a musical concert with participation by target consumers who should
  leave the program with a lasting impression. Venues for these events
  vary depending on the conceptual design for each type of products from
  department stores, hotels and trade show centers. Event marketing,
  therefore, reaches the target group immediately and effectively
  creates value to the customer’s products.

-   Past works / services performed

-   Event marketing: Road shows for various automobile brands e.g.
    Chevrolet, Mercedes –Benz, Ford and Jeep. Others: Nokia and AIS.

-   Product launch: Chevrolet Colorado launch, Chevy OK Day, Chevy
    Homecoming Day.

-   Road shows for Thailand Elite Card for Tourism Authority of Thailand
    in Taiwan and Korea.

-   120 years anniversary for Electricity Generating Authority of
    Thailand, Bicentennial anniversary of the King Mongkut’s Institute
    of Technology, Ladkrabang.

-   Annual meeting of National Science and Technology Development Agency
    (NSTDA)

-   Transform Thailand Exhibition

-   Product launch: Grand Opening Ceremony for General Motor (Thailand)
    assembly center and first Zafira drive off assembly line in Rayong
    2000 CP Orange launch, Bang Sai, Ayuthaya 2002.

-   Festival/Gala: Nokia Big Bang Festival at Siam Square 2001. Fendi
    Party Night at The Species, Bangkok and Thailand 2000.

-   Seminars: IBM Japan convention 2000 at the Shangrila Bangkok.

-   Design and construction of Subaru pavilion in the 22^(nd) Thailand
    International Motor expo 2005.

-   Pavilion construction for Heineken, Tiger Beer and Cheers Beer in
    the “Best of Nonthaburi” festival 2005.

-   “ Thai Metalex” 2005 of Siam-Fuchs Lubricants Company Limited

-   Design, construction and decoration display in the “OTOP” Premium
    and “Kitchen to the World 2005”, at the exhibition hall of the
    Department of External Trade Promotion. Ratchadapisek Road.

-   Asean Energy Business Forum 2004 held at World Trade Center, Metro
    Manila, Philippines under contract from PTT Public Company Limited

-   Turnkey Event and Exhibition Management

  This is market communication through an exhibition/display for
  ultimate customers or for the trade show organizer/event owner. The
  time period is usually brief and in accordance with the scheduled
  exhibition tenure. Generally the trade shows are classed by:

-   International or world class exposition such as the Geneva Telecom,
    Frankfurt Motor Show or Cebit. These expo’s are attended by
    participants from both private and public sectors worldwide and
    occupy hundreds of thousands square meters of space. Frequency
    varies from annual, biannual or annual at year end.

-   Regional Exhibition. This kind of trade show normally aims to
    showcase regional capability or a display of merchandise made by a
    specific group of industry that is acknowledged as principal to the
    area e.g. Asia Telecom, International Bangkok Motors Show, ASCOPE
    and Bangkok Gem and Jewelry Fair. Space usage, frequency and
    participants will be similar to the world class events but with more
    regional touch.

-   Local Trade Exhibition. This has more local contents depending on
    the merchandise show organizer e.g. the BOI Fair, Investor Fair. The
    government is also involved in this segment to showcase its
    educational achievements e.g. The National Science Week and the ICT
    Expo.

-   Past works / services performed

    -   Management of display in the Thailand Pavilion at the Universal
        Exposition in Germany in 2000. Design and decoration of the
        Thailand Pavilion in Canada, Australia and Spain in 1986, 1988
        and 1992 respectively.

    -   Design, construction an management of stands for various
        products e.g. Mercedes-Benz, Chevrolet, Ford, Jeep and Kenwood
        in the Bangkok International Motors show 2001-2005.

  Pico was assigned by various government units in organizing world
  class events.

-   Exhibition management for various public and private organizations
    in and outside of Thailand. ICT Expo 2004, Hemophilia 2004, Thailand
    Science and Technology 2004, SET in the City 2004, IT&CMA, Power
    Gen, ATF, AIME, Air Freight Asia, Bangkok Gems, Combex, Architects,
    TIFF, TPLAS, Home Buyer Guide, Com World Thailand 2005, Intermach
    and Asean Energy Business Forum 2004 in the Philippines , ITB at
    Berlin, and Thailand Science Tech 2003-2005

3.1.2 Museum and permanent exhibition.

-   Service Description.

  This business aims to continually inform the visitors of the features
  of the display/ exhibition in the form of an education center, public
  relations center and museum. Emphasis is placed on features of
  interest or knowledge oriented information. The time span is permanent
  or semi permanent (over one year). Improvements in technology and data
  information in the display are made in accordance with the changes.
  Normally improvements are made every 3-5 years.

-   Past works/services performed.

    -   MUSEUM

-   Renovation and interior decoration Arts and Culture Hall for the
    eastern region, phase II Burapa University, Chonburi.

-   BLCP Visitor Center of the BLCP Power Plant in the Mab Ta Phut
    industrial estate, Rayong.

-   Design and decoration for a display center for Isan folk knowledge
    for the “SUPPORT” foundation under H.M. the Queen’s patronage,
    Ubonrachathani for Office of Small and Medium Enterprises Promotion.

-   Design and decoration of the sports museum for the Sport Authority
    of Thailand.

-   Design for 5 storey building behind the Rama7 museum of the Rama7
    Institute at Larn Luang.

-   District museum for 4 districts of Bangkok depicting life in the
    community of Sam Pantawong, Bangrak, Bangkoknoi, Bangkhuntien.

-   Historical archive of the Bangkok University’s Surat Osathanugraha
    library. Rangsit campus.

-   Design and installation of Electricity and the Thai energy display
    for the National Science Museum Organization.

-   Project for the development of a historical park and museum to
    commemorate the heroism of 2484.

-   “8 December 1941 Memorial Museum Wing 53 Historical Park”, for Air
    Command 4, Ao Manao, Prachaupuap Khirikhan.

-   Ramkhamhang Museum (Sukhothai) for the Department of Fine Arts.

-   Buddhism Museum, Bhudda Monthon for the National Buddhism Office.

-   Rama7 Museum with display depicting life and activities history of
    Rama7 at Rama7 Institute, Larn Luang.

-   Design and installation of display materials for Hall of Opium of
    the Tourism Authority of Thailand (TAT) phase 2, Chiang Rai.

-   Design and installation of inside display for H.M. the Princess
    Mother’s archive for the Mae Fah Luang foundation and the TAT.

-   Improvements to the museum archive of Prince Paribatra, Suan Pakkad
    palace for the Chumbhot-Pantip Foundation, Bangkok

-   The Three Kingdom Project, Chonburi.

-   Mobile display, “Astronomy and the People” of the Science Center for
    Education, Ekamai for the Non Formal Education Department of the
    Ministry of Education.

-   Design and construction in the exhibition hall of the Securities
    Exchange of Thailand main building.

-   Design and construction of the Family Planning Museum for the
    Ministry Public of Health.

-   Internal display of the Children’s Museum for Bangkok Metropolitan
    Administration, The science, nature and the King sections.

-   The prevention and action against narcotics display for the Office
    of the Narcotics Control Board.

-   Semi permanent exhibitions

-   Design and decoration of the Asean Handicrafts archive of the
    SUPPORT international division, Bang Sai.

-   Internal display for visitors at Khao Yai National Park, Sarika and
    Nang Rong waterfalls for the Parks and Wildlife Department.

-   Rama9 display hall with “magic vision” display board in the compound
    of Armed Forces Preparatory School, Nakorn Nayok.

-   Renovation and decoration for the library, club house, technical
    display, control, graphic and “magic vision” at the Armed Forces
    Preparatory School.

-   Historical display of the history of Maha That Chedi of the Doi
    Inthanon, Chiang Mai for the Royal Thai Air Force.

-   Museum of the lignite mining in honor of King Rama7 at Mae Moh Mine,
    Lampang.

-   “Natural Disasters” display for the Science Education Office.

-   “Time” display for the Science Center for Education.

-   “Man and his Environment” and “Life and the stars” for the Science
    Center for Education.

-   Museum at the undersea park Chulabhorn 36, Phang-nga Province.

-   Museum for the Sino Thai relationship under the auspices of H.M. the
    King for Hua Chiew University. “Roads to Nature” display for the
    Science Museum Office of the Ministry of Science, Technology and
    Environment.

-   “Astronomy and Space” at the Science Park at Wah Gore, Prachuap
    Kirikhan for the Ministry of Education.

-   Her Royal Highness Mother Memorial, SCB Park Plaza

-   “The Father of Thai Sciences” display at the Science Park, Wah Gore,
    Prachuap Kirikhan for the Ministry of Education.

3.1.3 Others

  These include:

-   Rental of large air-conditioned tents from 1,000 sq.m. to 20,000
    sq.m. This serves to provide additional temporary space to
    exhibition organizers or large projects requiring significant
    covered space.

-   Graphic design for signage and banner projects used in advertising
    and/or public relation work.

-   Furnishings to complement the merchandise display to enhance sale
    such as display cabinets. These are eye catching units placed in the
    exhibition booth to increase sale in accordance with the client’s
    marketing plan

-   Interior design of offices. Logo design based on client’s business
    concept and philosophy.

-   Recent commissionings and installations

-   Erection of large tents at the Bangkok International Motors Show
    2001-2005 at BITEC.

-   Erection of large tents for the World’s AIDS conference 2004.

-   Interior decoration of Siemens Retail Shop

-   Various design of logos for financial institution clients e.g.
    United Securities Public Co., Ltd.

-   Lighted boxes and installation at designated spots for “First
    Choice”.

-   Provide various models and graphic work.

-   Erection of tented traveling road shows for Chevrolet nationwide.

-   Interior design for retail banking of Land and Houses Retail Bank
    Public Co., Ltd.

3.2 Market and Competition

The market for the event and exhibition is estimated to be valued at
Baht 7000 million in 2004 (excluding trade transacted in the exhibition)
and growing at 20% per annum. This expansion is estimated to be at 15%
in 2005 due to the slight economic slowdown.

The government sector business is expected to play a significant role.
It is expected to showcase its achievements, increase its public
relations drive on its mega projects, boost the tourism prospects
following the disastrous tsunami and the southern unrest. This type of
communication is widely recognized as most effective, soliciting a high
consumer’s response and overall good reach to the public. In the private
sector intense market competition in traditional media channels also led
to an increase in “below the line” advertising like event marketing.

The market is characterized by a high degree of competition with small
and large operators and multinationals competing for the business. As
one of the top five players, with a proven track record of over 25
years, Pico is in an excellent position to grow with the market Our
extensive network covering 26 countries, access to market information
and a well established client’s base will further enhance our market
opportunities.

-   Customers

Pico’s target market includes companies with a track record of
consistent growth an aspiration to be at the international level.
Businesses that receive government’s support, those looking to boost
sale and other operation that is looking for the marketing communication
with its customers. The groupings are as follows:

The Government Sector. This includes all government-owned offices,
agencies and state-owned companies. Since the government is committed to
the expansion of the industrial sector, numerous promotion projects are
conducted to educate, enhance understanding and foster further
industrial growth e.g. the food and tourism industry with clearly
designated government units being responsible for this development.

  The Private Sector consists of;

-   The automotive group. Thailand has become a major center for
    automobile production both for the export and local market. With the
    rapidly expansion of the domestic market, clients in this sector
    focus on event marketing which is direct to the consumer with
    instantaneous and measurable results. This sector will continue to
    be a consistent growth sector.

-   The telecommunication group. This segment continues to grow and is
    characterized by intense competition. The segment continues to rely
    substantially on event marketing as a communication tool.

-   The energy sector. This is a definite growth area with emphasis on
    social/community responsibility. Event marketing and/or exhibition
    are used to enforce its message of corporate responsibility to the
    public.

-   The financial institutions sector. The retail banking is a growth
    sub segment of this industry and is characterized by heavy
    competition with changing product offerings and gimmicks to gain
    market share. Event marketing is a key to reach the consumers with
    instantaneous feedbacks and results.

-   With the consistent economic growth and more competitive pressure it
    is expected that demand for public relations services will increase
    as firms in the consumer, jewelry and clothing look to ways and
    means to increase their market share.

  Breakdown of Income by Business Segment

+-------------------------------+--------+---+-------+----------+-------+
| Business Group                | Income |   |       |          |       |
|                               | P      |   |       |          |       |
|                               | ortion |   |       |          |       |
+-------------------------------+--------+---+-------+----------+-------+
|                               | 2005   |   |       | 2004     |       |
+-------------------------------+--------+---+-------+----------+-------+
|                               | M      |   | %     | Million  | %     |
|                               | illion |   |       | Baht     |       |
|                               | Baht   |   |       |          |       |
+-------------------------------+--------+---+-------+----------+-------+
| 1) State enterprises /        | 129    |   | 21.14 | 83       | 13.06 |
| Government                    |        |   |       |          |       |
|                               | 342    |   | 54.97 | 315      | 49.30 |
| 2) Private sector             |        |   |       |          |       |
|                               | 27     |   | 4.36  | 66       | 10.23 |
| -   Automotive                |        |   |       |          |       |
|                               | 29     |   | 4.82  | 175      | 27.40 |
| -   Telecommunication         |        |   |       |          |       |
|                               | 50     |   | 5.13  |          |       |
| -   Energy                    |        |   |       |          |       |
|                               | 139    |   | 9.59  |          |       |
| -   Financial Institutions    |        |   |       |          |       |
|                               |        |   |       |          |       |
| -   Others                    |        |   |       |          |       |
+-------------------------------+--------+---+-------+----------+-------+
| Total                         | 716    |   | 1     | 639      | 1     |
|                               |        |   | 00.00 |          | 00.00 |
+-------------------------------+--------+---+-------+----------+-------+
|                               |        |   |       |          |       |
+-------------------------------+--------+---+-------+----------+-------+

-   Service Conduct

  Pico and subsidiaries conduct their services in the following manners:

-   Direct Solicitation

  The marketing team will closely track the customer’s progress and/or
  receives an invitation to pitch or tender from both the government and
  private sectors. A proposal based on the customer’s requirements and
  budget will be submitted for approval. If selected the production team
  will continue with the work.

-   Maintaining a good relationship with customers

  Pico’s policy is to deliver internationally accepted standard of work
  to ensure maximum client’s satisfaction. This will result in a close
  and mutually beneficial relationship that will lead to repeat
  businesses. With the focus on growth companies and a definitive
  marketing plan, Pico is consistently awarded with work contracts.

-   Business Alliances.

  By maintaining a close alliance with the trade/show organizers or
  others who are in the event management chain, new leads are discovered
  with sound references from these organizers.

-   Customer’s referral

  With Pico’s over 20 years of experience and internationally accepted
  works, customer’s word of mouth is its best advertising.

-   Pico Far East and other subsidiaries thereof.

  The affiliation with Pico’s Far East with its worldwide network and
  alliances gives Pico Thailand an access to the institutional clients
  base especially when they move to Thailand.

3.3 Materials Sourcing

  Pico offers an integrated service in the event/exhibition marketing
  business. Emphasis is on the turnkey service form the conceptual
  design, construction, decoration, installation and management of the
  merchandise exhibition.

1.  Marketing Department.

  This unit prepares a list of target market customers from the data
  provided by the exhibition centers such as BITEC, QSNCC, IMPACT or
  from the show organizers like Bangkok Exhibition Services, Reed Tradex
  or from other announcements. Potential customers are then contacted
  for information and the required particulars obtained. Once known the
  marketing department will establish a conceptual design and intended
  communication plan to the consumers to be forwarded to other
  responsible units in the company.

  2. Design Department

  The design department is responsible for the realization of the
  conceptual design of the marketing department. It will determine the
  creative talents to be employed in order to effectively respond to the
  customer’s wishes. In-house services from PX System for booth design
  or Artcom Graphic for graphics or entire outsourcing may be made
  depending on the requirements. Once decided, an estimate will be
  calculated for submission to the customer.

  3. Interior design and construction.

  Once detailed design is completed, production will be undertaken
  either internally or externally by carefully selected outside
  contractors depending on cost and experience consideration. Outside
  subcontractors are rigorously monitored for quality of work at all
  stages of production. Once completed and inspected, the commissioned
  works will be delivered to the customer at the designated area.

  4. Administration Department

  Once the “hardware” is completed a new team to run the show will be
  formed. This covers presentation personnel, training, rehearsing.
  Outside contractors will be used e.g. personnel service, cleaning,
  security and performing troupe. Pico will be coordinating these
  efforts to ensure that the established theme of the event is closely
  followed until the end.

3.4 Work in Progress

  --------------------------------------- ------------- ------------------
  Undelivered works                       No. of jobs   Total value (MB)

  1. Event Marketing                      8             22.2

  2. Event Marketing : Trade Exhibition   5             19.1

  3. Permanent Exhibition and Museum      9             280.7

  3 Others                                2             15.5

  Total                                   24            337.5
  --------------------------------------- ------------- ------------------