Thailand. Opportunities Amid Challenges: Focusing on Fundamentals

Thailand Opportunities Amid Challenges: Focusing on Fundamentals Dr. Pakorn Peetathawatchai Chief Strategy and Finance Officer The Stock Exchange of Thailand July 2014

Opportunities amid challenges: focusing on fundamentals I. Thailand s growth potential remains promising Exports continue as a bright spot, supported by stronger global and regional demand Growth opportunities through intra-regional trade and investment connectivity II. The road to economic recovery III. Thai listed companies continue to be resilient IV. Thai capital market landscape

I. Thailand s growth potential The Thai economy has shown impressive resilience to shocks. The economy is expected to grow at around 1.5-2.5 percent in 2014 and will continue to expand at a healthy pace of 4-5 percent over the medium-term. Short-term growth will come from: - Exports to continue as a key driver - Planned infrastructure investments to boost the country s potential. (%YoY) 2012 2013 2014f GDP Growth 6.4 2.9 1.5-2.5 - Private consumption 6.6 0.2 0.8 - Private investment 14.6-2.8 1.8 - Public consumption 7.4 4.9-0.2 - Public investment 8.9 1.3-5.0 - Export value of goods (USD) 3.2-0.2 3.7 - Import value of goods (USD) 7.8-0.4 0.5 - Number of tourists (%YoY) 16.0 19.6 1.1 - Number of tourists (million) 22.3 26.7 27.0 Thailand: Medium-term GDP Growth forecast Note: *2014 mid-range forecast by NESDB, 2015 onward forecast by BOT, IMF Source: NESDB, Department of Tourism, Bank of Thailand, IMF s World Economic Outlook (%) 7 6 5 4 3 2 1 0 0.1 6.4 2.9 2.0 Actual Forecast* 5.0 4.8 4.7 4.5 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 3

2005 2006 2007 2008 2009 2010 2011 2012 2013 Apr-14 2006 2007 2008 2009 2010 2011 2012 2013 Apr-14 I. Thailand s growth potential External vulnerabilities appear manageable with Thailand s strong foreign reserve positions, and slight current account surplus. Strong commitment to fiscal discipline reflects sound fiscal positions and well-managed public debt. External debt and international reserves (billion USD) 250 200 150 Short-term external debt Gross External Debt Net international reserves 1/ 192 141 Public debt and fiscal balance (percent of GDP) (%) 6 4 2 0 Public debt to stay below 60 percent of GDP under fiscal sustainability framework 46.1 (%) 80 60 40 100 50 61-2 -4-2.0 20 0-6 Fiscal balance/ GDP (LHS) Public debt/ GDP (RHS) 0 1/ International reserves and net forward positions Source: Bank of Thailand, Fiscal Policy Office, IMF's World Economic Outlook Database (as of May 2014) 4

1998 2000 2002 2004 2006 2008 2010 2012 Mar-14 I. Thailand s growth potential Subdued inflation leaves room for accommodative monetary policy stance Financial sector resilience is strengthening. Credit boom is gradually cooling off. Banks are well-capitalized and asset quality has been stable. Inflation 6(%YoY, latest data as of Apr 14) 4 2 0-2 -4-6 Jan-09 Nov-09 Sep-10 Jul-11 May-12 Mar-13 Feb-14 Apr-14 2.45 2.00 1.66 headline inflation core inflation policy interest rate Capital adequacy and Non-performing loans (%) (%) 15.0 18 16 14 12 10 8 6 4 2 0 Tier1 (LHS) CAR (LHS) Gross NPLs to total loan (RHS) 11.8 2.4 50 45 40 35 30 25 20 15 10 5 0 Source: Bank of Thailand, Fiscal policy office 5

end2012 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14-2.1-1.6-1.5-1.8-2.0-1.2-1.5-1.2-0.6-0.7-0.2-0.6-0.4-0.7-0.1-0.2-0.1 0.0 0.5 0.2 0.5 0.3 0.0 0.3 0.5 0.5 0.8 1.2 2.4 2.3 I. Thailand s growth potential Thai Baht has weakened during the past 12 months, but stabilized at around 32.4 Baht/US$ recently. Slight Baht depreciation could partly support Thailand s export competitiveness. Nevertheless, Thai Baht has been less affected by the regional turbulence amid QE tapering. Exchange rate Foreign net capital flow (%) Rebased end 2012 = 100 (billion USD) as of Jun 25, 2014 110 3.0 Bond market Equity market 100 90 80 70-2.5% -5.2% -6.1% -7.1% -23.5% 2.0 1.0 0.0-1.0-2.0-3.0 0.8 1.5-1.9-0.4-1.1-0.1 Singapore Malaysia Philippines Thailand Indonesia Source: Bloomberg, The stock exchange of Thailand, The Thai bond market association 6

I. Thailand s growth potential Exports will return as a bright spot, supported by stronger global and regional demand. Border trade with CLMV is growing robustly and will likely do so for years to come. Thailand s exports by destination to total exports (%) 30 20 10 0 (%YoY) 40 30 20 10 0-10 26.0 25.6 5.0-3.5 14.7 11.4 8.3 10.9 11.8 8.0 8.3 4.3 2005 2010 2013 5M2014 11.9 11.2 9.810.5 9.7 9.9 10.0 10.1 ASEAN (9) CLMV CLMM China EU (27) Japan US Thailand s exports growth by destination (value in term of USD) 2005 2010 2013 5M2014 6.3 1.4 2.6-5.6-1.7-5.2 ASEAN (9) CLMV CLMM China EU (27) Japan US 0.8 1.1 Real GDP growth rate (%) Country 2012 2013 2014 2015 2019 ASEAN5 6.2 5.0 4.9 5.4 5.6 CLMV* 5.7 5.9 6.3 6.4 6.6 CLMM** 5.6 5.0 5.7 5.6 5.6 China 7.7 7.7 7.5 7.3 6.5 US 2.8 1.9 2.8 3.0 2.2 Euro area (17) -0.7-0.5 1.2 1.5 1.5 Japan 1.4 1.5 1.4 1.0 1.1 Note: *CLMV= Cambodia, Laos, Myanmar and Vietnam. Real GDP growth rate for CLMV is weighted averaged. **CLMM= Cambodia, Laos, Myanmar and Malaysia (border trade). Real GDP growth rate for CLMM is weighted averaged. Source: The customs of Thailand, IMF's World Economic Database, forecast as of April 2014 7

II. The road to economic recovery Thai economy has proven resilient to a number of political shocks 2006 Feb Government dissolved the parliament. Q2 Protest began Sep Coup was launched 4.6 5.1 5 2008 Aug Protestors occupied the Government House Sep Caretaker PM was appointed after previous PM was discharged. Nov Protestors occupied the Suvarnabhumi airport Dec New PM sworn into office. Thailand s GDP Growth (%) 2010 Apr Protestors occupied Rajaprasong area 7.8 2013 Nov Amnesty bill was proposed, protestors occupied streets in Bangkok Dec PM dissolved the parliament 6.5 2014 Jan-May Ongoing protest in Bangkok area May 22nd Coup was launched. 2.5 Global Financial Crisis 0.1 2.9 1.5-2.5 2007 May Constitutional court dissolved a political party. Dec New election launched and PM was appointed. -2.3 2009 Apr Protestors gathered at Din- Daeng and Victory Monument 2011 May Prime minister dissolved the parliament July New election Aug new PM was appointed. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f Sources: NESDB, FPO 9

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 II. The road to economic recovery Tourism has been adversely impacted but historically has been quick to rebound. Fiscal disbursement was lagging, due to some delay in capital expenditures. But the Ministry of Finance has speeded up the disbursement of FY2014 budget and the approval of FY2015 budget, following the guideline from National Council of Peace and Order (NCPO). International tourist arrivals (thousand) The 3,000 28 government is processing to setup 23 22 2,500 the parliament 16 in Q3 2014. 2,000 The key changes are: 1,500 reforming political system 1,000 resolve 500 populism policies 0 26 25 PM and some politicians in caretaker No.of government international tourists (LHS) are in lawsuit. 18 22 24 14 11 4 0-8 -9-2 -11 %YoY (RHS) (%) 30 25 20 15 10 5 0-5 -10-15 Budget for fiscal year 2014 FY 2014 Framework Amount (million Baht) 1-year Target (% of Framework) 1-year Expected (% of Framework) Expenditures 2,525,000 95.0% 90.0% - Current - Capital Carry-over expenditures from previous budgets 2,096,645 428,355 97.7% 82.0% 96.3% 57.3% 301,093 72.0% 70.3% Source: Bank of Thailand, Fiscal Policy Office, Ministry of Tourism and Sports 10

Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Index change following political shocks II. The road to economic recovery Experience shows that SET has proven resilient to political shocks, generally returning to pre-shock levels in less than a year. 140 The government is processing to setup 120 the parliament in Q3 2014. The key changes 100 are: reforming political system 80 resolve populism policies60 3 Months SET index dynamics following political shocks (rebase 100 one day before shock) 5 Months 2010 (Protest at Ratchaprasong) 1992 (Black May) 2013 (the amnesty bill + QE Tapering) As ofjun25, 2014 7 Months 2008 (PAD occupied the Suvarnabhumi airport + Subprime crisis) 13 Months PM and some politicians 40 in caretaker government are in lawsuit. Source : The stock exchange of Thailand Time since political shocks 11

II. The road to economic recovery The National Council for Peace and Order s political roadmap leads to democratic elections. In the medium term, economic policies will continue to be pro-growth and supportive of domestic demand. Timeline of the events : Political roadmap (tentative timeline) : Phase I (Present) National Council on Peace and Order (NCPO) to take charge Ensure order and reconciliation Implement urgent economic measures Fully functioning government is expected in September Phase II (next 3 months) Form an interim government Lift martial law and curfew when the situation returns to normal* Enact reform initiatives Phase III (15+ months) Set up reform committees to draft new constitution Put in place a new constitution (mid-2015) New election *At present, curfew has been lifted for all areas in the country. Mission Statement and Policies of the Head of the National Council for Peace and Order (NCPO) http://www.mfa.go.th/main/en/mediacenter/3756/47440-mission-statement-and-policies--of-the-head-of-the.html Latest update on political situation in Thailand can be found at http://www.mfa.go.th/main/en/media-center/3756 12

II. The road to economic recovery NCPO s economic policy framework focuses on maintaining free market mechanism, removing market distortions, and addressing structural obstacles. Stimulus measures will boost economic growth in 2014-2015. Short-term stimulus measures 1. Repay rice farmers under the rice-pledging scheme 2. Accelerate budget disbursement for 2014 fiscal year and approve budget 2015 fiscal year 3. Infrastructure projects such as double-track railways, the Metropolitan Rapid Transit (MRT) 4. Clarify tax measures: - An extension of the current value-added tax rate (VAT) of 7%; - Corporate income tax to be kept at 20% NCPO s Economic Policy Framework Private sector confidence + Foreign investor confidence Economic growth 1. Market-based, private sector-driven economy - Reduction of SOE role 2. Free flow of capital and free trade - Fostering border trade 3. Ensure fiscal discipline within fiscal sustainability framework 4. Comprehensive reforms to enhance long-term competitiveness - Labor market reform 13

31/12/2013 31/1/2014 28/2/2014 31/3/2014 30/4/2014 31/5/2014 III. Thai listed companies YTD, SET index performance is approximately 13%. YTD index performance and movement (%); as of Jun 25, 2014 23.0 19.6 17.216.0 14.5 13.1 14.513.2 12.113.4 (%); data at end Dec 2013 100.8 92.9 79.6 76.8 53.7 46.7 68.6 30.1 21.6 9.3 In USD 4.0 3.0 3.2 1.2-7.1-4.3 India Philippines Thailand Indonesia Vietnam Singapore Malaysia China 4-year (2010-2013) index performance In USD 21.2 In local currency In local currency -8.8-10.6-27.2-35.4 Philippines Thailand Malaysia Indonesia Singapore India Vietnam China Source : Bloomberg, The stock exchange of Thailand 2.0 YTD index performance and movement Dec 31, 2013=100 120 115 110 105 100 95 90 85 as of Jun 25, 2014 Thailand MSCI Emerging Markets Index MSCI World Index MSCI BRIC Index 15

III. Thai listed companies SET s forward P/E ratio is attractive compared to peers, while market dividend yield is around 3.1%. Forward P/E ratio (unit: times) 17.86 19.24 16.46 16.95 14.89 15.49 14.29 15.35 13.31 14.54 13.93 14.47 26 June 2013 26 June 2014 9.72 10.79 10.17 9.09 8.34 8.04 Philippines Malaysia Indonesia Taiwan Thailand Singapore Hong Kong Korea China Market Dividend Yield (unit: %) 1.32 1.10 2.14 2.10 2.30 2.17 26 June 2013 26 June 2014 3.41 3.40 2.65 3.10 3.05 3.11 3.03 3.12 3.20 3.30 3.67 3.85 Korea Indonesia Philippines Taiwan Malaysia China Thailand Singapore Hong Kong Source : Bloomberg, The stock exchange of Thailand 16

III. Thai listed companies Thai listed companies have become global and regional players. 17

III. Thai listed companies Number of Thai listed companies invested abroad expanded significantly by approximately 50 percent between 2006-2013, from 59 to 109 companies. Revenue of trade and investment abroad reached 45 percent of total revenue of listed companies in recent years. Number of Thai listed companies invested abroad 90 80 70 60 50 40 30 20 10 0 47 81 36 53 16 31 As of 2013, the number of Thai listed companies invested abroad totaled 109 companies out of total 596 listed companies. 24 20 10 10 14 12 10 4 6 3 Revenue of trade and investment abroad to total revenue* (%) 50 45 40 35 30 25 20 15 10 5 0 38 43 41 45 42 44 44 45 2006 2007 2008 2009 2010 2011 2012 2013 2006 2013 Source : The stock exchange of Thailand * Data of 115 companies which reported revenue of trade and investment abroad FY 2006-2013 18

19 III. Thai listed companies In particular, Thailand stands to benefit from our connectivity to high-growth CLMV. 2013 GDP and Expected 2015-2018 GDP growth SET as connectivity for investing in CLMV USD 57 billion 7.8% USD 425 billion 3.8% China USD 16 billion 7.3% USD 8,227 billion 7.3% USD 10 billion 7.8% USD 156 billion 5.7% Equity investment in listed companies operating in and exporting to CLMV Investing in holding companies operating abroad Infrastructure funds for infrastructure projects in CLMV USD 328 billion 5.0% Malaysia Source : IMF's World Economic Database, forecast as of April 2014

III. Thai listed companies Holding company: a new investment vehicle to match investors in SET to businesses operating abroad. Holding company listing Shareholders (Thai/foreign) Holding company (Thai incorporated) 50% (must be maintained) Thai/Foreign subsidiary (core business) The first holding companies operating abroad listed on SET CK power (CKP) acquired majority of shares in South East Asia Energy Co.,Ltd. (SEAN), the major shareholder of Nam Ngum 2 hydro power plant in Lao PDR, making its core asset. CKP also invested in solar power and cogeneration power plants in Thailand. Listed on SET as of July 18, 2013 with 2,680 million baht IPO value. Company to be listed by 2014: AMATA VN invest in industrial estate and commercial project in Vietnam. Under filing process. PM Thoresen Asia Holdings Ltd. (PMTA)'s core operating is a fertilizer maker, Baconco which has evolved into Vietnam s second largest fertilizer company in terms of production. Under filing process. Source : The stock exchange of Thailand 20

Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 III. Thai listed companies Infrastructure funds are new SET investment vehicles and will support both domestic and regional infrastructure developments. Infrastructure fund listing 3 infrastructure funds listed on SET BTS rail mass transit growth infrastructure fund (BTSGIF) 60 billion baht IPO size : the largest IPO in Thailand Revenue from the operation of the original BTS sky train system. Amata B.Grimm power plant infrastructure fund (ABPIF) 6 billion baht IPO size Revenue from the operation of power plants for industrial sectors in Thailand and Vietnam True Telecommunications Growth Infrastructure Fund (TRUEIF) 58 billion baht IPO size: the first telecom infrastructure fund Revenue from the rental of 5,845 telecommunication towers, core fiber-optic cable grids and related transmission equipment (FOC system) 200 100 0 40 20 0 Market capitalization of BTS and BTSGIF (billion baht); data as of Jun 25, 2014 BTSGIF first day trade Market capitalization of AMATA and ABPIF (billion baht); data as of Jun 25, 2014 ABPIF first day trade BTS BTSGIF AMATA ABPIF Potential businesses to utilize infrastructure fund: Private sector: telecommunication, electricity cogeneration State-own enterprises: Metropolitan Waterworks Authority, Provincial Waterworks Authority, Electricity Generating Authority of Thailand Source : The stock exchange of Thailand 150 50-50 Market capitalization of TRUE and TRUEIF (billion baht); data as of Jun 25, 2014 TRUEIF first day trade TRUE TRUEIF 21

2008 Mar-10 Aug-10 Jan-11 Jun-11 Nov-11 Apr-12 Sep-12 Feb-13 Jul-13 Dec-13 May-14 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 IV. Thai capital market landscape SET has the highest average daily turnover in ASEAN, during the past 3 years. Average daily turnover (2008 - May 2014) (million USD) 2,500 2,000 1,500 1,000 500 0 May14 1,189 993 659 194 0 Share turnover velocity* (2011 - May 2014) (%) 140 120 100 80 60 40 20 May14 69 38 30 20 Thailand Singapore Malaysia Indonesia Philippines Thailand Singapore Malaysia Indonesia Philippines *Share turnover velocity is calculated by {Monthly EOB Domestic Share Turnover / Month-end Domestic Market Capitalization) *12 Source : World Federation of Exchanges (WFE). 23

IV. Thai capital market landscape SET has a well diversified investor base. Local investors have played a key role in providing liquidity to SET and stabilizing SET index amid volatile international capital flows. SET index and net buying position in SET and mai Unit: million baht (LHS), index (RHS); cumulative Dec 31, 2013-Jun 25, 2014 60,000 40,000 20,000 0-20,000-40,000 2 Jan 14 2 Feb 14 2 Mar 14 2 Apr 14 2 May 14 2 Jun 14 Local institutes Foreign investors SET index Source : The stock exchange of Thailand ProprietaryTrading Local retail investors 1,500 1,450 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1,000 Transactions by investor type (average trading value: million baht) Foreign investors Local retail investors Local institutes Proprietary trading 13% 12% 13% 13% 13% 10% (2,356) (3,495) (3,886) (4,198) (6,347) (3,643) 7% 8% 9% 8% 9% 10% (1,214) (2,205) (2,586) (2,512) (4,294) (3,617) 61% 62% 55% 55% 57% 54% (11,113) (18,018) (16,287) (17,765) (28,747) (19,239) 19% 18% 23% 24% 22% 25% (3,542) (5,347) (6,713) (7,830) (10,940) (9,057) 2009 2010 2011 2012 2013 2014 (YTD) 24

IV. Thai capital market landscape SET has a relatively larger number of liquid large-cap listed companies compared to peers. Market capitalization (billion USD); data as of 26 Jun 2014 Number of listed companies having market capitalization >= $1 billion and daily average trading value* >= $10 million data as of 26 Jun 2014 677 542 22 19 414 400 11 8 Singapore Malaysia Thailand Indonesia Thailand Singapore Malaysia Indonesia *Average daily trading value during 26 Dec 2013 26 Jun 2014 **Large-cap listed companies mean companies having market capitalization>= $1 billion and daily average trading value >= $10 million Source : World Federation of Exchanges (WFE), Bloomberg 25

1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 IV. Thai capital market landscape Number of listed companies and securities has consistently increased from new IPOs, especially in last 3 years. No. of companies 700 600 Newly listed company (SET & mai & PFUND & IFF) Total listed company (SET & mai & PFUND & IFF) 649 500 454 400 300 200 100 0 Breakdown of number of listed companies and securities IPOs (2012-2014 latest) Total outstanding Stocks: SET 30 498 Stocks: mai 29 98 Property funds & REIT 17 50 Infrastructure funds 3 3 Total IPOs 79 649 18 18 9 13 21 8 8 3 1 8 7 4 1 19 34 34 39 60 36 43 43 28 40 5 1 0 2 10 24 29 50 55 22 16 16 22 15 16 24 38 17 * Source: SETSMART (Include Property Funds & IFF) * As of May 9, 2014 26

IV. Thai capital market landscape Thailand is recognized as a leader in capital market corporate governance. ACGA s CG Watch market scores: 2007 to 2012 2007 2010 2012 1.Hong Kong (67) 1.Singapore (67) 1.Singapore (69) 2.Singapore (65) 2.Hong Kong (65) 2.Hong Kong (66) 3.India (56) 3.Japan (57) 3.Thailand (58) 4.Taiwan (54) 4.Thailand (55) 4.Japan (55) 5.Japan (52) 4.Taiwan (55) 4.Malaysia (55) 6. Korea (49) 6.Malaysia (52) 6.Taiwan (53) 6. Malaysia (49) 7.India (49) 7.India (51) 8.Thailand (47) 7.China (49) 8.Korea (49) 9.China (45) 9.Korea (45) 9.China (45) 10.Philippines (41) 10.Indonesia (40) 10.Philippines (41) 11.Indonesia (37) 11.Philippines (37) 11.Indonesia (37) Source: Asian Corporate Governance Association The World Bank corporate governance country assessment 2012 83 83 85 87 76 83 64 69 62 65 66 63 Thailand (2012) Selected Asia (Indonesia, India, Malaysia, Thailand, Philippines, Vietnam) Source: The World Bank ASEAN corporate governance scorecard 2012-2013 * 80% 60% 40% 20% 0% 75.4% 67.7% 71.7% 71.7% 2012 62.3% 55.7% 58.0% 48.9% 54.6% 2013 43.3% 33.9% 28.4% Thailand Malaysia Singapore Philippines Indonesia Vietnam * average total corporate governance score of the country s 100 largest listed companies based on market capitalization Source : Joint Initiative of the ASEAN Capital Markets Forum and the Asian Development Bank 27

IV. Thai capital market landscape Thai capital market was upgraded from the Secondary Emerging Market to Advanced Emerging Market status by FTSE in March 2012. A number of Thai stocks are now presented in the global index calculation: 26 in MSCI Standard index and 3 in DJSI World index. 1. ADVANC: Advanced Info Service 2. AOT: Airports of Thailand FTSE Global Equity Index Series Country Classification (as of May 2014) 3 Thai stocks in Dow Jones Sustainability Index (DJSI) World Index (as of May 2014) Developed Advanced Emerging Secondary Emerging Frontier Australia Brazil Chile Argentina Austria Czech Republic China Bahrain Belgium/Luxembourg Hungary Columbia Bangladesh Canada Malaysia Egypt Botswana Denmark Mexico India Bulgaria Finland Poland Indonesia Cote d lvoire France South Africa Morocco Croatia Germany Taiwan Pakistan Cyprus Greece Thailand Peru Estonia Hong Kong Turkey Philippines Ghana Ireland Russia Jordan Israel Thailand Kenya Italy UAE Lithuania Japan Macedonia Netherlands Malta New Zealand Mauritius Norway Nigeria Portugal Oman Singapore Qatar South Korea Romania Spain Serbia Sweden Slovakia Switzerland Slovenia UK Sri Lanka USA Tunisia Vietnam DJSI World component Invited list for DJSI 2014 (Number of companies) 1. SCC: Siam Cement Co. Malaysia 37 2. PTT: PTT PCL Thailand 31 3. PTTGC: PTT Global Chemical PCL Singapore 26 Indonesia 18 26 Thai stocks in MSCI Standard index (as of May 2014) 3. BANPU: Banpu 4. BBL: Bangkok Bank 5. BEC: BEC World 6. BGH: Bangkok Dusit Medical Services 7. BTS : Bangkok Mass Transit System 8. CPN: Central Pattana 9. CPF: Charoen Pokphan Foods 10. CPALL: CP All 11. GLOW: Glow Energy 12. HMPRO: Home product center 13. IVL: Indorama Ventures 14. IRPC: IRPC 15. KBANK: Kasikornbank 16. KTB: Krung Thai Bank 17. MINT: Minor international 18. PTT: PTT 19. PTTGC: PTT Global Chemical 20. PTTEP: PTT Exploration & Production 21. SCB: Siam Commercial Bank 22. SCC: Siam Cement 23. TMB : Thai Military Bank 24. TOP: Thai Oil 25. TRUE: True Corporation 26. BH: Bumrungrad Hospital Source : FTSE, MSCI, DJSI 28

IV. Thai capital market landscape Derivatives market is growing rapidly, especially single stock futures and SET50 index futures Daily average trading volume in TFEX (unit: number of contracts per day) 6,165 CAGR 2008-2013 50% 508 829 2,751 16,479 14,927 462 977 9,009 34,351 47,921 Others* Currency futures Gold futures 393 4,014 444 185 1,397 4,006 154 600 8,498 10,381 10,212 6,468 8,849 17,690 16,467 23,218 37,328 Single stock futures SET50 index futures 2008 2009 2010 2011 2012 2013 Jan - Jun26, 2014 Total 8,837 12,771 18,676 41,145 48,823 68,017 81,224** * Others comprise of Oil futures, SET50 Index options, Silver futures, Interest rate futures and Sector futures * *TFEX has modified its SET50 futures contract to have a smaller contract size on May 6, 2014. The new SET50 futures, or mini-set50 futures, have a contract size that is one-fifth that of the previous one. The contract multiplier was reduced from THB 1,000 per index point to THB 200 per index point, resulting in a drop in size to about THB 200,000. Source: SETSMART 29

Disclaimer This document was prepared by The Stock Exchange of Thailand in good faith upon sources believed to be reliable but no representation or warranty expressed or implied is made to their accuracy or correctness. The Stock Exchange of Thailand accepts no liability for any direct or consequential loss or damage arising from any use of this document or its contents. All information and opinion expressed here is subject to change without notice. The copyright belongs to The Stock Exchange of Thailand. No part of this document may be published or copied in any form or by any means without the written permission of The Stock Exchange of Thailand. 30

Appendix: Trading at SET Exchange and Trading Integrated Equities Domestic common shares Dual listings State enterprise listings SME listings Warrants Property funds / REITs / Infrastructure Fund Domestic mutual funds / ETFs Domestic indices / FTSE indices Shariah index Data, System and Other Services Model Post-Trade Services Derivatives Stock index futures Single stock futures Gold / Silver futures Derivative warrants Interest rate futures Oil futures Currency futures Sector Index Futures Fixed Income Corporate bonds Government and state enterprises bonds Post-Trade Services Clearing & settlement Central Depository Securities and fund registration SET Information Services SET listed companies & product information database 31

Appendix: Trading at SET 2 options to get all benefits from investing in Thai stocks. Option 1: Mostly for strategic shareholders Option 2: General option Proportion of trading value by type of stocks by foreign investors Trade stock-f Most SET-listed Thai companies have foreign ownership restriction. Check out foreign ownership restriction of each stock via www.set.or.th >> company/securities info >> equity >> then select your preferred company. Trade NVDR stock or stock-r Another option is to trade NVDRs. (Non-Voting Depository Receipts) Obtain all financial benefits with the exception of voting rights. Gain greater efficiency, flexibility and convenience as if you are local investors. Foreign Shares, 13.07% Local Shares, 45.77% Source: SET NVDR, 41.16% Remarks: Trading stocks on local board is applicable. However, to get all benefits, stocks should be transferred to stock-f or stock-r. NVDRs traded on local board, no price different from local stocks. 32

Appendix: Opportunity Day Webcast Quarterly updated info of many listed companies are available on opportunity day webcast and application on tablet. 1 Opportunity Day Webcast Live from Meeting room Application on ipad & Android Tablet This application can be searched OppDay in AppStore or PlayStore 3 channels to view and join Live opportunity Day 2 Allow SET to broadcast VDO File of Company s Analyst Meeting 1. Website www.set.or.th/oppday www.settrade.or.th/oppday 2. iphone & Smart Phone 3. Application on ipad & Android Tablet Note: Presentation in English is currently still limited. However, the company presenting in English are increasing gradually. 33

Appendix: Dow Jones Sustainability Index (DJSI) 3 stocks in DJSI World Index component (as of May 2014) PTT: PTT PCL PTTGC: PTT Global Chemical PCL SCC: Siam Cement PCL 14 stocks in invited list ADVANC: Advanced Info Service PCL BBL: Bangkok Bank BAY: Bank of Ayudhya PCL BEC: BEC World PCL BIGC: Big C Supercenter PCL CPF: Charoen Pokphand Foods CPALL: CP ALL PCL KBANK: Kasikorn bank KTB: Krung Thai Bank Co PTTEP: PTT Exploration & Production PCL PTTGC: PTT Global Chemical PCL PTT: PTT PCL SCC: Siam Cement Public Co. SCB: Siam Commercial Bank PCL 34

Appendix: FTSE ASEAN Index Series ASEAN Exchanges announced the three new tradable indices on 30 May 2014. What s new: FTSE ASEAN Stars Index: Comprises the 30 biggest companies of each ASEAN country. The index will contain 180 companies in total. FTSE ASEAN All-Share Index: Represents the performance of large, mid and small cap ASEAN companies in all 7 markets. FTSE ASEAN All Share Ex-Developed Index: Represents the performance of all markets in FTSE ASEAN All-Share Index except Singapore. Existing FTSE ASEAN Index: FTSE/ASEAN 40 Index: Comprise the 40 biggest companies in ASEAN country. More info of FTSE ASEAN Index Series, go to http://www.set.or.th/en/products/index/ftse_asean_p1.html 35

Appendix: www.aseanexchanges.org More info of ASEAN exchanges, go to www.aseanexchanges.org. 36

Appendix: GMS Exchanges information center SET and GMS exchanges agree to exchange market information to be shown on GMS Exchanges information. The website will be an integrated single-window view into the GMS capital market. http://www.set.or.th/en/gms_exchanges 37

IPOs IPOs size hit SET s all time high records in 2013 Market Cap. (Mil.USD) 12,000 Market Capitalization of New Listed Companies (2000-2014) 11,275 10,000 8,000 5,791 6,000 4,000 3,293 2,473 2,543 3,160 3,205 3,249 2,373 522 891 1,039 1,839 2,847 2,000 1,319 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year IPOs with market capitalization over 300 million USD Symbol Trade Date Market Sector Market Capitalization (Mil.USD) BTSGIF 19/4/2013 SET Transportation & Logistics 1,894 TRUEIF 27/12/2013 SET Information & Communication Technology 1,760 M 15/8/2013 SET Food & Beverage 1,345 EA 30/1/2013 mai Medium-Sized Enterprise 622 NOK 20/6/2013 SET Transportation & Logistics 492 MONO 6/6/2013 mai Medium-Sized Enterprise 484 MEGA 19/11/2013 SET Commerce 459 CKP 18/7/2013 SET Energy & Utilities 433 MC 4/7/2013 SET Commerce 364 TLGF 19/3/2012 SET Property Fund & REITs 558 AAV 31/5/2012 SET Transportation & Logistics 544 ANAN 7/12/2012 SET Property Development 424 VGI 11/10/2012 SET Media & Publishing 318 LHBANK 10/5/2011 SET Banking 482 38

Appendix: IPOs summary (year-to-date) This year SET s IPOs might reach 8 billion USD; many of IPOs in pipeline. New Listing (SET + mai) Trade (Mkt. Cap 3,853 Mil.USD) SET : 9 Companies 2,592 Mil.USD Mai : 4 Companies 241 Mil.USD PFUND/REIT : 4 Funds 1,020 Mil.USD IFF : - Fund - Mil.USD RTO : - Company - Mil.USD Companies having filing approval (Mkt. Cap 1,028 Mil.USD) SET: : 2 Companies 352 Mil.USD Mai : 4 Companies 143 Mil.USD PFUND/REIT : 5 Funds 533 Mil.USD IFF : - Fund - Mil.USD. Companies under SEC filing and expected to IPO within 2014 (Mkt. Cap 2.8 Bil.USD) SET : 6 Companies 500 Mil.USD mai : 9 Companies 124 Mil.USD PFUND/REIT : 5 Funds 649 Mil.USD IFF : 1 Fund 1,515 Mil.USD Data are as of 30 June 2014 39

Highlight of IPOs Many of new IPOs and upcoming IPOs with market capitalization over 300 mil.usd Ichitan Group (ICHI) Producer and distributor of ready-made beverages, being a market leader of ready-to-drink green tea. The company is categorized in food sector, which is one of the highlight sector of the SET. Market capitalization at IPO = 512 million USD Trading date: 21 April 2014 Kaset Thai International Sugar Corporation (KTIS) Thailand s third largest sugar producer who is a fully integrated sugar business including an ethanol factory, a bleached paper pulp factory, a biomass power plant, and a bio-fertilizer pellet factory. Market capitalization at IPO = 1.2 billion USD, biggest IPO YTD. Trading : 28 April 2014 Thai Hotel Investment Freehold and Leasehold Property Fund (THIF) Property fund investing in five-stars hotels in Bangkok and other famous tourist destinations in Thailand such as Chiangmai, Phuket and Samui Island Market capitalization at IPO = 806 million USD Trading : 16 June 2014 LH Shopping Center (LHSC) Property fund investing in a shopping mall named Terminal 21 located at the center of Bangkok and market village Hua Hin Estimated market capitalization at IPO = 363 million USD Trading : Q4/2014 Remark: Companies are already traded or under filing at the Securities and Exchange Commission 40