New Dimension for Offshore Investment 1 September 2015 Dr. Kongkiat Opaswongkarn Chief Executive Officer Asia Plus Group Holdings PCL
Why Invest Globally? PROS Diversification Products (Equities / Fixed Incomes / Mutual Funds / Property Assets) Markets Currencies CONS FX Risk Political Risk OBSTACLES Capital Gains Tax 2
Market Cap Comparison Rank Country Market Cap (Billion USD) % of World % of GDP World 60,861 100.0 85 1 USA 22,390 36.8 146 2 China 5,462 10.3 52 3 Japan 4,731 7.4 90 4 Hong Kong 3,817 6.6 1,505 5 UK 3,391 5.5 137 6 France 1,931 3.1 69 7 Germany 1,771 2.8 49 8 Canada 1,664 2.7 114 9 Switzerland 1,610 2.5 236 10 India 1,407 2.4 84 11 South Korea 1,077 1.8 91 12 Australia 931 1.6 78 13 Taiwan 745 1.3 183 14 Spain 703 1.1 52 15 Italy 596 1.0 26 16 Brazil 536 0.9 34 17 Saudi Arabia 452 0.7 65 18 Singapore 450 0.7 189 22 Russia 365 0.6 17 25 Malaysia 337 0.6 145 27 Thailand 336 0.5 107 28 Indonesia 303 0.5 46 29 Philippines 227 0.4 94 As of 24 August 2015 3
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Millions Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Macro View - USA 4 3 2 1 0-1 -2-3 -4-5 GDP Growth YoY 11 10 9 8 7 6 5 4 Unemployment Rate 65 60 55 50 45 40 35 30 ISM Manufacturing Housing Starts Dollar Index Export Growth YoY 2.5 2.0 1.5 1.0 0.5 0.0 100 95 90 85 80 75 70 25 20 15 10 5 0-5 -10-15 -20-25 As of July 2015 4
Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Stock Market - US S&P 500 Index 2,200 29 2,000 27 1,800 25 1,600 23 1,400 21 1,200 19 1,000 17 800 15 600 13 400 11 S&P 500 P/E (RHS) As of 24 August 2015 5
Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Stock Market - US Nasdaq Index 5,400 50 4,900 46 4,400 42 3,900 38 3,400 34 2,900 30 2,400 26 1,900 22 1,400 18 900 14 400 10 Nasdaq P/E (RHS) As of 24 August 2015 6
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Macro View - Europe GDP Growth YoY Unemployment Rate Manufacturing PMI 4 3 2 1 0-1 -2-3 -4-5 -6 13 12 11 10 9 8 7 56 54 52 50 48 46 44 Consumer Price Index YoY EUR/USD Export Growth YoY 5 4 3 2 1 0-1 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1.0 15 10 5 0-5 -10-15 -20 As of July 2015 7
Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Stock Market - Europe Euro Stoxx 600 Index 450 20 400 18 350 16 300 14 250 200 12 150 10 100 8 Euro Stoxx 600 P/E (RHS) As of 24 August 2015 8
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Macro View - Japan 8 6 4 2 0-2 -4-6 -8-10 -12 GDP Growth YoY 6.0 5.5 5.0 4.5 4.0 3.5 3.0 Unemployment Rate 240 230 220 210 200 190 180 170 160 150 Debt as Percent of GDP Consumer Price Index YoY USD/JPY Export Growth YoY 4 3 2 1 0-1 -2-3 130 120 110 100 90 80 70 50 40 30 20 10 0-10 -20-30 -40-50 As of July 2015 9
Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Stock Market - Japan Nikkei 225 Index 25,000 50 23,000 45 21,000 40 19,000 35 17,000 30 15,000 25 13,000 20 11,000 15 9,000 10 7,000 5 Nikkei 225 P/E (RHS) As of 24 August 2015 10
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Trillion Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Macro View - China GDP Growth YoY Manufacturing PMI House Price Growth Tier 1 YoY 13 65 20 12 60 15 11 10 9 8 55 50 45 10 5 0 7 40-5 6 35-10 8.5 USD/CNY 50 Export Growth YoY Outstanding Balance of Margin Purchase and Debt Payment 8.0 7.5 7.0 6.5 40 30 20 10 0-10 -20 2.5 2.0 1.5 1.0 0.5 6.0-30 0.0 As of July 2015 11
Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Stock Market - China Shanghai Composite Index 7,200 45 6,200 40 5,200 4,200 35 30 25 3,200 2,200 20 15 1,200 10 200 5 Shanghai Composite P/E (RHS) As of 24 August 2015 12
Market Valuations Forward PER 25 20 15 10 16 15 18 13 11 14 5 0 USA - S&P500 Europe - Stoxx 600 Japan China Hong Kong (Hang Seng) Thailand 50 40 30 Current PER 12M Forward PER Forward EPS Growth Data as of 24 Aug 15 20 10 11 11 11 13 9 14 0-10 -20 USA - S&P500 Europe - Stoxx 600 Japan China Hong Kong (Hang Seng) Thailand EPS Growth 2015F EPS Growth 2016F Thailand data from ASPS Research Date as of 13 Aug 15 13
Sectoral P/E Valuations Price / Earning S&P 500 Stoxx Europe 600 Nikkei Shanghai Composite Financials 16 12 15 8 11 Technology 18 17 16 37 19 Consumer Discretionary 22 17 13 22 21 Telecom 12 20 16 28 19 Consumer Staples 19 19 23 25 22 Healthcare 17 18 36 26 34 Energy 30 13 16 16 8 Utilities 16 13 14 17 14 Industrials 15 16 14 26 22 Materials 15 16 13 34 12 SET Data as of 24 August 15 14
Investment Ideas 15
Example of Asset Allocation Sector Focus USA Financials China Technology Japan Europe Europe Japan Financials Consumer Discretionary Financials & Insurance Automobiles USA China Financials & Insurance Technology 16
Selected Industries / Major Industries Banking Insurance Technology Automobile Retail Consumer Discretionary 17
Financials and Banking Attractive Valuations Low P/E, P/BV Strong Balance Sheet Recovery Indicators Higher Interest Rates, Higher NIMs upon Recovery 18
Banking Valuations COMPANY MARKET MARKET CAP ($, Billion) P/E P/BV DIV. YIELD (%) WELLS FARGO US 263 11 1.4 3 JPMORGAN US 223 9.3 0.9 3.1 ING NETHERLANDS 44 11 1.0 6.6 SOCIETE GENERALE FRANCE 30 8.3 0.6 5.5 CREDIT SUISSE SWISS 40 9.3 0.9 3.9 UNICREDIT ITALY 30 9.6 0.6 3.5 MITSUBISHI UFJ JAPAN 89 10 0.7 2.5 SUMITOMO JAPAN 54 8.2 0.7 3.2 ICBC CHINA 226 4.8 0.7 6.8 KASIKORN BANK THAI 11 8.1 1.2 2.8 SIAM COMM BANK THAI 13 8.3 1.3 4.7 Data as of 24 August 15 19
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) WELLS FARGO US 263 11 1.4 3 Scaled to reflect real performance of a stock Data as of 24 August 15 20
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) ICBC CHINA 226 5 0.7 6.8 Scaled to reflect real performance of a stock Data as of 24 August 15 21
Insurance Attractive Valuations High Dividend Yield Higher Market Returns, Higher Profit Resilience of Investment, Low Volatility Value of New Policy Growth 22
Insurance Valuations COMPANY MARKET MARKET CAP ($, Billion) P/E P/BV DIV. YIELD (%) AIG US 74 10 0.6 1.8 SWISS RE SWISS 29 9.6 0.8 6.0 ZURICH SWISS 38 10 1.2 6.4 ALLIANZ GERMAN 56 9.2 0.9 5.5 AXA FRANCE 47 8.9 0.8 5.4 AVIVA UK 29 8.9 1.2 5.5 TOKIO MARINE JAPAN 28 13 0.9 2.3 AIA HK 67 16 1.9 1.5 PING AN CHINA 81 9.5 1.4 1.8 CHINA LIFE CHINA 99 12 1.6 2.9 BANGKOK LIFE THAI 2 14 2.4 2.1 Data as of 24 August 15 23
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) AIG US 74 10 0.6 1.8 Scaled to reflect real performance of a stock Data as of 24 August 15 24
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) TOKIO MARINE JAPAN 28 13 0.9 2.3 Scaled to reflect real performance of a stock Data as of 24 August 15 25
Technology Major Investment Theme High Growth Potential (Online vs. Offline) Product Innovation Mega Trend Social Media, e-commerce, Wearable Devices 26
Technology Valuations COMPANY MARKET MARKET CAP ($, Billion) P/E P/BV DIV. YIELD (%) APPLE US 588 11 3.7 2.1 FACEBOOK US 231 30 4.7 0 ALIBABA US 165 25 5.1 0 GOOGLE US 413 18 2.9 0 AMAZON US 217 53 13 0 NETFLIX US 41 206 19 0 SOFTBANK JAPAN 69 16 2.5 0.6 TENCENT HK 160 25 7.0 0.4 SAMSUNG S.KOREA 139 7 0.9 1.9 Data as of 24 August 15 27
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) APPLE US 588 11 3.7 2.1 Scaled to reflect real performance of a stock Data as of 24 August 15 28
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) FACEBOOK US 231 30 4.7 0 Scaled to reflect real performance of a stock Data as of 24 August 15 29
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) GOOGLE US 413 18 2.9 0 Scaled to reflect real performance of a stock Data as of 24 August 15 30
Automobile Attractive Valuations Economic Recovery Plan Model, Technology Innovations Auto Sales Reaching Record High 31
Automobile Valuations COMPANY MARKET MARKET CAP ($, Billion) P/E P/BV DIV. YIELD (%) GENERAL MOTORS US 44 5.5 1.0 5.2 FORD US 52 6.8 1.5 4.8 TESLA US 29 96 25 0 DAIMLER GERMAN 66 7.6 1.3 5.1 BMW GERMAN 46 7.9 1.1 4.4 VOLKSWAGEN GERMAN 70 6.3 0.8 4.0 PORSCHE GERMAN 17 4.8 0.5 4.1 TOYOTA JAPAN 195 9.0 1.2 3.3 HONDA JAPAN 55 11.2 0.9 2.6 NISSAN JAPAN 40 8.6 0.9 3.9 Data as of 24 August 15 32
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) DAIMLER GERMAN 66 8 1.3 5.1 Scaled to reflect real performance of a stock Data as of 24 August 15 33
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) VOLKSWAGEN GERMAN 70 6 0.8 4 Scaled to reflect real performance of a stock Data as of 24 August 15 34
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) TOYOTA JAPAN 195 9 1.2 3.3 Scaled to reflect real performance of a stock Data as of 24 August 15 35
Retail Attractive Valuations Steady Growth Continues in the US Bottoming Out in the UK and Europe Worldwide Expansion 36
Retail Valuations COMPANY MARKET MARKET CAP ($, Billion) P/E P/BV DIV. YIELD (%) WALMART US 206 14 2.4 3.1 COSTCO US 58 24 4.5 1.2 MACY US 19 12 3.8 2.4 HOME DEPOT US 146 21 19 2.0 CARREFOUR FRANCE 18 14 1.7 3.2 SEVEN & I JAPAN 37 23 1.9 1.5 CPALL THAI 12 26 9.4 2.3 CENTRAL THAI 5 19 3.5 2.0 Data as of 24 August 15 37
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) WALMART US 206 14 2.4 3.1 Scaled to reflect real performance of a stock Data as of 24 August 15 38
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) SEVEN & I JAPAN 37 23 1.9 1.5 Scaled to reflect real performance of a stock Data as of 24 August 15 39
Consumer Discretionary Economic Recovery High Profit Margin Business Beneficiary of EUR Depreciation 40
Consumer Discretionary Valuations COMPANY MARKET MARKET CAP ($, Billion) P/E P/BV DIV. YIELD (%) STARBUCKS US 75 27 10 1.5 DISNEY US 161 17 3.2 1.3 NIKE US 89 25 6.0 1.1 LVMH FRANCE 65 16 2.5 2.9 HERMES FRANCE 30 28 7.1 1.3 INDITEX SPAIN 80 29 7.4 2.2 ADIDAS GERMAN 12 16 2.1 2.7 FAST RETAILING JAPAN 43 36 6.1 0.8 Data as of 24 August 15 41
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) LVMH FRANCE 65 16 2.5 2.9 Scaled to reflect real performance of a stock Data as of 24 August 15 42
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) STARBUCKS US 75 27 10.2 1.5 Scaled to reflect real performance of a stock Data as of 24 August 15 43
COMPANY MARKET MARKET ($, Billion) P/E P/BV DIV. YIELD (%) INDITEX SPAIN 80 29 7.4 2.2 Scaled to reflect real performance of a stock Data as of 24 August 15 44
Exchange Traded Funds (ETFs) Diversification Lower Fees Trades Like a Stock 45
ETF Valuations ETF MARKET TICKER MARKET CAP ($, Billion) S&P 500 US SPY US 158 NASDAQ US QQQ US 35 EUROPE EUROPE HEDJ US 19 NIKKEI JAPAN 1321 JP 23 CHINA A50 CHINA 2823 HK 4 CHINA H-SHARE HK 2828 HK 6 Data as of 24 August 15 46
August-13 October-13 December-13 February-14 April-14 June-14 August-14 October-14 December-14 February-15 April-15 June-15 Mutual Funds - Europe AXA World Funds Flamlington Europe Real Estate Securities 17% Sector Allocation 6% 4% 5% 35% AXA World Funds Flamlington Europe Real Estate Securities is a master fund of ASP-EUPROP fund by Asset Plus 170 160 150 140 130 Fund Performance 120 33% 110 Office Retail Residential Industrial Storage Others 100 90 Performance (%) YTD 1Y 3Y Annualized 5Y Annualized Fund^ 20 30 83 125 Benchmark 19 29 74 111 ^ Master Fund Performance from AXA as of July 2015 AXA World Funds - Framlington Europe Real Estate Securities FTSE EPRA NAREIT Deleloped Europe Capped / AXA
Mutual Funds US High Yield Bonds AXA World Funds US High Yield Bonds USD Fund Sector Allocation 14% 36% 10% 9% 7% 8% 8% 8% Energy Basic Industry Healthcare Services Media Telecom Capital Goods Others Source: AXA Performance (%) YTD 1Y 3Y Annualized 5Y Annualized Fund^ 3.07-0.24 22.7 51.7 Benchmark 2.49-0.55 21.9 49.7 ^ Master Fund Performance from AXA as of August 2015 48
Mar-00 Mar-02 Mar-04 Mar-06 Mar-08 Mar-10 Mar-12 Mar-14 Property Assets US and UK House Price Index 350 300 250 200 150 100 UK Nationalwide House Price Index S&P/Case-Shiller Composite-20 Home Price Index Source: www.telegraph.co.uk Data as of March 2015 49
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