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1 Thailand Company Guide Version 11 Bloomberg: DTAC TB Reuters: DTAC.BK Refer to important disclosures at the end of this report DBS Group Research. Equity 2 Apr 2018 HOLD (Upgrade from FULLY VALUED) Last Traded Price ( 30 Mar 2018): Bt44.50 (SET : 1,776.26) Price Target 12-mth: Bt46.00 (3% upside) (Prev Bt44.30) Analyst Wasu MATTANAPOTCHANART wasum@th.dbs.com What s New 1Q18F core earnings to jump over 200% y-o-y Raise FY18F earnings by 95% Raise TP by 3% to Bt46.00 Price Relative TOT deal coming soon Upgrade to HOLD. DTAC s share price has declined by 11% since we downgraded the stock to FULLY VALUED on 31 Jan As the share price now has 2% upside to our new TP of Bt46.00, we upgrade our call to HOLD. 4Q18F core earnings are expected to jump over 200% y-o-y mainly due to lower costs. Also, we raise FY18F earnings by 95% to reflect the delay of the 2.3GHz deal with TOT, which should be signed within 2Q18. 1Q18F core earnings to jump over 200% y-o-y. We forecast 1Q18F core earnings of Bt886m (+255% y-o-y, +65% q-o-q) on the back of Bt16.4bn service income ex. IC (+1% y-o-y and q-oq). The surge in the bottom line is expected to be supported by lower handset losses (1Q17: Bt959m vs 1Q18F: Bt317m) and lower regulatory fee (1Q17: 15.8% vs 1Q18F: 11.7%). Despite TRUE s aggressiveness and ADVANC s renewed handset campaign for prepaid subscribers, DTAC remains focused solely on offering discounted handsets for postpaid clients. Forecasts and Valuation FY Dec (Btm) 2016A 2017A 2018F 2019F Revenue 82,478 78,275 79,287 80,876 EBITDA 26,973 29,936 26,694 23,890 Pre-tax Profit 2,592 2,333 2,037 4,608 Net Profit 2,086 2,115 2,159 4,217 Net Pft (Pre Ex.) 2,542 2,014 2,165 4,223 Net Pft Gth (Pre-ex) (%) (58.9) (20.8) EPS (Bt) EPS Pre Ex. (Bt) EPS Gth Pre Ex (%) (59) (21) 8 95 Diluted EPS (Bt) Net DPS (Bt) BV Per Share (Bt) PE (X) PE Pre Ex. (X) P/Cash Flow (X) EV/EBITDA (X) Net Div Yield (%) P/Book Value (X) Net Debt/Equity (X) ROAE (%) Earnings Rev (%): 95 (4) Consensus EPS (Bt): Other Broker Recs: B: 11 S: 11 H: 9 Source of all data on this page: Company, DBSVTH, Bloomberg Finance L.P Raise FY18F earnings by 95%. We now expect DTAC to sign the 2.3GHz capacity deal with TOT by June and start incurring expenses (Bt4.5bn p.a.) in 3Q18, instead of 2Q18. This leads to a 95% increase in our FY18F earnings to Bt2.2bn (+8% y-o-y). The Attorney General will do a final review of the TOT deal, and the firm expects to sign the contract soon. Valuation: We have a TP of Bt46.00, based on DCF valuation and assuming 2% terminal growth and 8.1% WACC; the higher TP is due to the absence of investments in tower and fibre JV with CAT. Key Risks to Our View: All of DTAC s concessions will expire in September Failure to win the bandwidth back (in terms of licences) will result in a substantial drop in service quality. At A Glance Issued Capital (m shrs) 2,368 Mkt. Cap (Btm/US$m) 105,368 / 3,378 Major Shareholders (%) Telenor Asia Pte Ltd 42.6 Thai Telco Holdings Limited 15.0 Thai NVDR 10.4 Free Float (%) m Avg. Daily Val (US$m) 11.4 ICB Industry : Telecommunications / Fixed Line Telecommunications ed: CK / sa: PY, CS

2 Quarterly / Interim Income Statement (Btm) 1Q17 2Q17 3Q17 4Q17 1Q18F % y-o-y % q-o-q Service revenue ex. IC 16,223 16,407 15,957 16,234 16, % 1.7% IC revenue % -2.4% Service revenue 17,071 17,227 16,764 17,022 17, % 1.5% Handset revenue 2,446 2,055 1,833 3,039 2, % 65.8% Total revenue 19,747 19,444 18,810 20,275 19, % 7.8% Cost of services -11,893-11,754-11,762-11,889-12, % 1.1% Cost of handsets -3,405-2,797-2,455-3,577-2, % 45.7% Gross profit 4,450 4,894 4,594 4,809 5, % 4.7% SG&A -3,889-3,581-3,666-4,173-3, % 13.8% FX gain/loss % 300.0% Interest income % 10.5% Other income and share profit % -70.1% EBIT 633 1,375 1, , % -36.1% Finance cost % -7.5% Tax % % Non-controlling interest na na Net profit % -9.8% Norm. profit % 6.4% Profitability ratios GPM - overall 22.5% 25.2% 24.4% 23.7% 25.8% GPM - service ex. IC 31.7% 33.2% 31.2% 31.7% 31.3% GPM - handset -39.2% -36.1% -33.9% -17.7% -15.0% Regulatory costs (% of service revenue ex. IC) 15.8% 13.3% 13.6% 10.8% 11.7% EBITDA margin - overall 34.9% 40.4% 41.5% 37.5% 42.9% EBITDA margin - ex. Handset 45.4% 49.5% 49.7% 47.3% 49.9% Effective tax rate -14% -22% -20% 50% -6% NPM 1.2% 3.8% 3.2% 2.7% 4.6% Norm. net margin 1.3% 3.8% 2.6% 2.6% 4.5% Source of all data: Company, DBSVTH Page 2

3 CRITICAL DATA POINTS TO WATCH Critical Factors Valuation takes into account the need for new licences in All of DTAC s concessions (55MHz) will expire in September The 5MHz (out of 10MHz) bandwidth under the 850MHz spectrum will likely be returned to the State Railway of Thailand, while the other 5MHz bandwidth should be up for bidding. The 45MHz under the 1.8GHz spectrum should be up for bidding in mid We expect DTAC to win one 1.8GHz licence (15MHz bandwidth) at Bt40bn and one 850MHz licence (5MHz bandwidth) at Bt38bn. Service Revenue Sale of Handsets and Handset Margin Better prepared financially for the next auction. DTAC is confident of winning at least one licence in the next 1.8GHz auction. The strain on its financials will be lower, as it did not win any new licences in the recent two auctions, and it will no longer have the high revenue-sharing scheme in its portfolio after the expiry of all of its concessions. On 3 February 2016, the dividend payout was cut from 80% to 50%. Still committed to providing services in Thailand. DTAC plans to spend around Bt18-20bn capex per year on the 3G/4G network. It now has 3G coverage of 98% of the population and nationwide 4G coverage (every district of Thailand). Of the total 50MHz on hand, 20MHz from 2.1GHz (5MHz) and 1.8GHz (15MHz) spectra will be used for 4G services. Other Operating Income EBITDA Margins Source: Company, DBSVTH Page 3

4 Balance Sheet: We expect DTAC s net gearing ratio to rise from 0.8x in 2017 to 1.2x in FY18F, assuming that the firm will win the 1.8GHz licence (15MHz bandwidth) at Bt40bn and 850MHz licence (5MHz) at Bt38bn. Leverage & Asset Turnover (x) Share Price Drivers: Revenue growth and stable market share. Key Risks: Inability to win new licences in All of DTAC s concessions will expire Sep Failure to win the bandwidth back (in terms of licences) will result in a substantial drop in service quality. Capital Expenditure Company Background DTAC is a cellular operator in Thailand with a subscriber market share of 25%, on par with TRUE s but behind ADVANC s 49%. ROE (%) Forward PE Band (x) PB Band (x) Source: Company, DBSVTH Page 4

5 Income Statement (Btm) FY Dec 2015A 2016A 2017A 2018F 2019F Revenue 87,753 82,478 78,275 79,287 80,876 Cost of Goods Sold (62,063) (60,846) (59,529) (62,256) (61,358) Gross Profit 25,689 21,632 18,746 17,031 19,518 Other Opng (Exp)/Inc (16,866) (17,796) (15,309) (13,734) (13,483) Operating Profit 8,823 3,836 3,437 3,297 6,035 Other Non Opg (Exp)/Inc Associates & JV Inc (6.7) Net Interest (Exp)/Inc (1,248) (1,396) (1,340) (1,497) (1,664) Exceptional Gain/(Loss) (295) (456) 101 (6.0) (6.0) Pre-tax Profit 7,445 2,592 2,333 2,037 4,608 Tax (1,557) (506) (218) 123 (392) Minority Interest Preference Dividend Net Profit 5,893 2,086 2,115 2,159 4,217 Net Profit before Except. 6,188 2,542 2,014 2,165 4,223 EBITDA 27,597 26,973 29,936 26,694 23,890 Growth Revenue Gth (%) (2.9) (6.0) (5.1) EBITDA Gth (%) (10.3) (2.3) 11.0 (10.8) (10.5) Opg Profit Gth (%) (37.7) (56.5) (10.4) (4.1) 83.1 Net Profit Gth (Pre-ex) (%) (42.4) (58.9) (20.8) Margins & Ratio Gross Margins (%) Opg Profit Margin (%) Net Profit Margin (%) ROAE (%) ROA (%) ROCE (%) Div Payout Ratio (%) Net Interest Cover (x) Source: Company, DBSVTH Page 5

6 Quarterly / Interim Income Statement (Btm) FY Dec 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 Revenue 19,537 21,465 19,748 19,443 18,809 Cost of Goods Sold (14,249) (16,820) (15,297) (14,551) (14,215) Gross Profit 5,288 4,645 4,451 4,892 4,595 Other Oper. (Exp)/Inc (4,114) (4,368) (3,889) (3,581) (3,774) Operating Profit 1, , Other Non Opg (Exp)/Inc Associates & JV Inc (0.3) 0.36 (3.0) Net Interest (Exp)/Inc (339) (323) (324) (363) (345) Exceptional Gain/(Loss) 6.84 (139) Pre-tax Profit 858 (19.9) Tax (199) 50.0 (37.9) (215) (146) Minority Interest Net Profit Net profit bef Except EBITDA 7,175 6,510 6,879 7,853 7,541 Growth Revenue Gth (%) (1.3) 9.9 (8.0) (1.5) (3.3) EBITDA Gth (%) 17.0 (9.3) (4.0) Opg Profit Gth (%) (76.4) (37.4) Net Profit Gth (Pre-ex) (%) 21.0 (74.1) (32.6) Margins Gross Margins (%) Opg Profit Margins (%) Net Profit Margins (%) Balance Sheet (Btm) FY Dec 2015A 2016A 2017A 2018F 2019F Net Fixed Assets 69,188 67,160 57,941 55,734 63,112 Invts in Associates & JVs Other LT Assets 15,299 16,019 17,068 89,694 84,142 Cash & ST Invts 10,121 18,293 26,048 15,423 16,119 Inventory 2,826 2,063 1,954 1,656 1,653 Debtors 9,722 8,973 8,590 8,859 9,037 Other Current Assets 3,605 2,571 2,624 3,034 3,095 Total Assets 111, , , , ,433 ST Debt 15, , Creditor 29,867 32,919 29,985 31,796 31,337 Other Current Liab 5,054 5,137 4,438 4,509 4,529 LT Debt 33,000 49,000 47,000 52,500 52,500 Other LT Liabilities 899 1,002 1,827 54,935 54,921 Shareholder s Equity 27,221 27,144 29,234 30,773 33,981 Minority Interests Total Cap. & Liab. 111, , , , ,433 Non-Cash Wkg. Capital (18,768) (24,449) (21,256) (22,755) (22,082) Net Cash/(Debt) (37,879) (30,872) (22,967) (37,242) (36,546) Debtors Turn (avg days) Creditors Turn (avg days) Inventory Turn (avg days) Asset Turnover (x) Current Ratio (x) Quick Ratio (x) Net Debt/Equity (X) Net Debt/Equity ex MI (X) Capex to Debt (%) Z-Score (X) Source: Company, DBSVTH Page 6

7 Cash Flow Statement (Btm) FY Dec 2015A 2016A 2017A 2018F 2019F Pre-Tax Profit 7,445 2,592 2,333 2,037 4,608 Dep. & Amort. 18,796 23,202 26,686 23,397 17,855 Tax Paid (2,113) (2,771) (218) 123 (392) Assoc. & JV Inc/(loss) (3.7) (10.1) 6.70 (10.0) (10.0) Chg in Wkg.Cap. (13.5) 3,082 (4,304) 3,716 (788) Other Operating CF (409) 1,016 Net Operating CF 24,776 26,626 24,674 28,853 22,290 Capital Exp.(net) (18,384) (18,161) (16,770) (18,000) (20,000) Other Invts.(net) Invts in Assoc. & JV Div from Assoc & JV Other Investing CF (5,198) (24,020) 0.0 Net Investing CF (23,572) (17,392) (16,770) (42,020) (20,000) Div Paid (11,242) (2,226) 0.0 (1,108) (1,594) Chg in Gross Debt 14,336 1,165 (150) 3, Capital Issues Other Financing CF Net Financing CF 3,094 (1,061) (150) 2,542 (1,594) Currency Adjustments Chg in Cash 4,297 8,173 7,754 (10,625) 696 Opg CFPS (Bt) Free CFPS (Bt) Source: Company, DBSVTH Target Price & Ratings History Source: DBSVTH Analyst: Wasu MATTANAPOTCHANART THAI-CAC Corporate Governance CG Rating (as of Oct 2017) Certified THAI-CAC is Companies participating in Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) under Thai Institute of Directors (as of Feb 2018) are categorised into: Score Declared Certified Description Companies that have declared their intention to join CAC Companies certified by CAC. Corporate Governance CG Rating is based on Thai Institute of Directors (IOD) s annual assessment of corporate governance practices of listed companies. The assessment covers 235 criteria in five categories including board responsibilities (35% weighting), disclosure and transparency (20%), role of stakeholders (20%), equitable treatment of shareholders (10%) and rights of shareholders (15%). The IOD then assigns numbers of logos to each company based on their scoring as follows: Score Range Number of Logo Description Excellent Very Good Good Satisfactory Pass <50 No logo given N/A Page 7

8 DBSVTH recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame) Share price appreciation + dividends Completed Date: 2 Apr :16:56 (THA) Dissemination Date: 2 Apr :20:11 (THA) Sources for all charts and tables are DBSVTH unless otherwise specified. GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH''). This report is solely intended for the clients of DBS Bank Ltd, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH''). The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the DBS Group ) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without notice. This research is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to update the information in this report. This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned schedule or frequency for updating research publication relating to any issuer. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that: (a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein. Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets. Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. Page 8

9 DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making. ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate 1 does not serve as an officer of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests 2 in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately. There is no direct link of DBS Group's compensation to any specific investment banking function of the DBS Group. COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBS Bank Ltd, DBS HK, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), DBSV HK or their subsidiaries and/or other affiliates have a proprietary position in recommended in this report as of 28 Feb Neither DBS Bank Ltd, DBS HK nor DBSV HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research Report. Compensation for investment banking services: 3. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively. Disclosure of previous investment recommendation produced: 4. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months. 1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst. 2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant. Page 9

10 RESTRICTIONS ON DISTRIBUTION General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Australia This report is being distributed in Australia by DBS Bank Ltd. ( DBS ) or DBS Vickers Securities (Singapore) Pte Ltd ( DBSVS ). DBS holds Australian Financial Services Licence no DBSVS is exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001 ( CA ) in respect of financial services provided to the recipients. DBSVS is regulated by the Monetary Authority of Singapore under the laws of Singapore, which differ from Australian laws. Distribution of this report is intended only for wholesale investors within the meaning of the CA. Hong Kong This report has been prepared by an entity(ies) which is not licensed by the Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong Kong and is attributable to DBS Vickers Hong Kong Limited, a licensed corporation licensed by the Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at equityresearch@dbs.com. Indonesia Malaysia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia. This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies. Wong Ming Tek, Executive Director, ADBSR Singapore Thailand This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No E) or DBSVS (Company Regn No G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at for matters arising from, or in connection with the report. This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Page 10

11 United Kingdom This report is produced by DBS Vickers Securities (Thailand) Co Ltd which is regulated by the Securities and Exchange Commission, Thailand. This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and regulated by the Financial Conduct Authority in the United Kingdom. In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at persons having professional experience in matters relating to investments. Any investment activity following from this communication will only be engaged in with such persons. Persons who do not have professional experience in matters relating to investments should not rely on this communication. Dubai International Financial Centre United Arab Emirates United States Other jurisdictions This research report is being distributed by DBS Bank Ltd., (DIFC Branch) having its office at PO Box , 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it. This report is provided by DBS Bank Ltd (Company Regn. No E) which is an Exempt Financial Adviser as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. This report is for information purposes only and should not be relied upon or acted on by the recipient or considered as a solicitation or inducement to buy or sell any financial product. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situation, or needs of individual clients. You should contact your relationship manager or investment adviser if you need advice on the merits of buying, selling or holding a particular investment. You should note that the information in this report may be out of date and it is not represented or warranted to be accurate, timely or complete. This report or any portion thereof may not be reprinted, sold or redistributed without our written consent. This report was prepared by DBS Vickers Securities (Thailand) Co Ltd (''DBSVTH''). DBSVUSA did not participate in its preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate. In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions. Page 11

12 DBS Regional Research Offices HONG KONG DBS Vickers (Hong Kong) Ltd Contact: Paul Yong 18th Floor Man Yee Building 68 Des Voeux Road Central Central, Hong Kong Tel: Fax: Participant of the Stock Exchange of Hong Kong MALAYSIA AllianceDBS Research Sdn Bhd Contact: Wong Ming Tek ( U) 19th Floor, Menara Multi-Purpose, Capital Square, 8 Jalan Munshi Abdullah Kuala Lumpur, Malaysia. Tel.: Fax: general@alliancedbs.com SINGAPORE DBS Bank Ltd Contact: Janice Chua 12 Marina Boulevard, Marina Bay Financial Centre Tower 3 Singapore Tel: Fax: equityresearch@dbs.com Company Regn. No E INDONESIA PT DBS Vickers Sekuritas (Indonesia) Contact: Maynard Priajaya Arif DBS Bank Tower Ciputra World 1, 32/F Jl. Prof. Dr. Satrio Kav. 3-5 Jakarta 12940, Indonesia Tel: Fax: research@id.dbsvickers.com THAILAND DBS Vickers Securities (Thailand) Co Ltd Contact: Chanpen Sirithanarattanakul 989 Siam Piwat Tower Building, 9th, 14th-15th Floor Rama 1 Road, Pathumwan, Bangkok Thailand Tel Fax: research@th.dbs.com Company Regn. No Securities and Exchange Commission, Thailand Page 12