III. Thai listed companies

ThailandOpportunities Amid Challenges: Focusing on Fundamentals

The Stock Exchange of Thailand

August 2014

http://www.studysquares.com/travel/wp-content/uploads/จุดผ่านแดนถาวรแม่สาย.jpg

I. Thailand’s growth potential remains promising

• Growth opportunities through intra-regional trade and investment connectivity

• Exports to return as a bright spot, supported by stronger external demand

• Planned infrastructure investments to boost the country’s potential

II. The road to economic recovery

III. Thai listed companies continue to be resilient

IV. Thai capital market landscape

Opportunities amid challenges: focusing on fundamentals

Source: Fiscal Policy Office, Department of Tourism, Bank of Thailand, IMF’s World Economic Outlook

(%YoY) 2012 2013 2014f

GDP Growth 6.4 2.9 2.0

- Private consumption 6.6 0.2 0.3

- Private investment 14.6 -2.8 -3.5

- Public consumption 7.4 4.9 4.6

- Public investment 8.9 1.3 4.0

- Export value of goods (USD)

3.2 -0.2 1.5

- Import value of goods (USD)

7.8 -0.4 -5.2

- Number of tourists (%YoY) 16.0 19.6 1.1

- Number of tourists (million) 22.3 26.7 27.0

• 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.

Thailand: Medium-term GDP Growth forecast

0.1

6.4

2.92.0

5.0 4.8 4.7 4.5

0

1

2

3

4

5

6

7

2011 2012 2013 2014f 2015f 2016f 2017f 2018f

(%)

3

I. Thailand’s growth potential

Actual

Forecast*

Note: *2014 mid-range forecast by NESDB, 2015 onward forecast by BOT, IMF

1/ International reserves and net forward positions

Source: Bank of Thailand, Fiscal Policy Office, IMF's World Economic Outlook Database (as of May 2014)

External debt and international reserves

(billion USD)

63

144

192

0

50

100

150

200

250

2005

2006

2007

2008

2009

2010

2011

2012

2013

Jun-

14

Short-term external debt

Gross External Debt

Net international reserves 1/

• 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.

4


Public debt and fiscal balance (percent of GDP)

-0.3

46.6

0

20

40

60

80

-6

-4

-2

0

2

4

6

2006

2007

2008

2009

2010

2011

2012

2013

Jun-

14

Fiscal balance/ GDP (LHS)

Public debt/ GDP (RHS)

60

(%)(%)

Public debt to stay below 60 percent of GDP

under fiscal sustainability framework

Source: Bank of Thailand, Fiscal policy office

Capital adequacy and Non-performing loans

05101520253035404550

0

2

4

6

8

10

12

14

16

18

1998

2000

2002

2004

2006

2008

2010

2012

2014

Q1

Tier1 (LHS)

CAR (LHS)

Gross NPLs to total loan (RHS)

(%) (%)

15.5

12.3

2.3

• 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.

5


-6

-4

-2

0

2

4

6

Jan-09 Nov-09 Sep-10 Jul-11 May-12 Mar-13 Feb-14

headline inflation

core inflation

policy interest rate

Inflation

Jul-14

2.35

1.712.00

(%YoY, latest data as of Jul 14)

May

-14

Source: Bloomberg, The stock exchange of Thailand, The Thai bond market association

• 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.

Foreign net capital flowExchange rate

(%) Rebased end 2012 = 100 (billion USD) as of July 31, 2014

6


70

80

90

100

110

end2

012

Jan-

13Fe

b-13

Mar

-13

Apr-1

3M

ay-1

3Ju

n-13

Jul-1

3Au

g-13

Sep-

13O

ct-1

3N

ov-1

3D

ec-1

3Ja

n-14

Feb-

14M

ar-1

4Ap

r-14

May

-14

Jun-

14

Singapore Malaysia Philippines

Thailand Indonesia

2.4

0.8

1.5

0.5

-1.6

-1

.5

-0.1

-2

.1

2.3

0.3

-1.9

-0

.4

-0.6

-0

.2

-0.1

0.

8 -2

.0

0.9

3.6

0.5

-0.6

0.

2 -0

.7 -0.2

-1

.8

0.0

-1.2

0.

3 0.

0 -1

.5 -1.2

-0.4

-0

.7

0.5

0.5

-1.1

-0.1

0.5

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

Jan-

13

Mar

-13

May

-13

Jul-1

3

Sep-

13

Nov

-13

Jan-

14

Mar

-14

May

-14

Jul-1

4

Bond market Equity market

-23.5%

-7.1%-5.2%-2.5%-6.1%

5.011.8

8.31.4 2.6

-5.2

0.8

-2.5

8.04.1

-4.3

7.5

-1.5

2.8

-100

10203040

ASEAN (9) CLMV CLMM China EU (27) Japan US

2005 2010 2013 6M2014

26.0

8.3 10.911.9

9.89.7 10.0

25.8

8.9 11.4 11.0 10.5 9.9 10.2

0

10

20

30

ASEAN (9) CLMV CLMM China EU (27) Japan US

2005 2010 2013 6M2014

• 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 export growth by destination (value in term of USD)

Source: The customs of Thailand, IMF's World Economic Database, forecast as of April 2014

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.

Thailand’s exports by destination to total exports

(%YoY)

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

(%)

7

(%)







9

• Thai economy has proven resilient to a number of political shocks

4.65.1 5.0

2.5

-2.3

7.8

0.1

6.5

2.9

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f

Thailand’s GDP Growth (%)

Global Financial

Crisis

2006

Feb Government dissolved

the parliament.

Q2 Protest began

Sep Coup was launched

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.

2010

Apr Protestors occupied

Rajaprasong area

2013

Nov Amnesty bill was

proposed, protestors

occupied streets in

Bangkok

Dec PM dissolved the

parliament

2007

May Constitutional court dissolved

a political party.

Dec New election launched and PM

was appointed.

2014

Jan-May Ongoing protest in

Bangkok area

May 22nd Coup was launched.

July 31st National legislative

assembly were

appointed

2009

Apr Protestors gathered at Din-

Daeng and Victory Monument

2011May Prime minister dissolved the

parliamentJuly New electionAug new PM was appointed.

Sources: NESDB, FPO

1.5-2.5


10

The government is

processing to setup

the parliament in Q3

2014. The key

changes are:

• reforming political

system

• resolve populism

policies

• PM and some

politicians in

caretaker government

are in lawsuit.

• 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).

16

28

23 22

26 25

18

2224

1411

4

0

-8 -9

-2

-11

-15

-10

-5

0

5

10

15

20

25

30

0

500

1,000

1,500

2,000

2,500

3,000

Jan-

13

Apr-1

3

Jul-1

3

Oct

-13

Jan-

14

Apr-1

4

No.of international tourists (LHS) %YoY (RHS)

International tourist arrivals

(%)(thousand)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

2,096,645

428,355

97.7%

82.0%

96.3%

57.3%

Carry-over

expenditures

from previous

budgets

301,093 72.0% 70.3%

Budget for fiscal year 2014

Source: Bank of Thailand, Fiscal Policy Office, Ministry of Tourism and Sports


11

The government is

processing to setup

the parliament in Q3

2014. The key

changes are:

• reforming political

system

• resolve populism

policies

• PM and some

politicians in

caretaker government

are in lawsuit.

• Experience shows that SET has proven resilient to political shocks, generally returning to pre-shock levels in less than a year.

40

60

80

100

120

140

Mon

th 0

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 1

0

Mon

th 1

1

Mon

th 1

2

Mon

th 1

3

Inde

x ch

ange

follo

win

g po

litic

al s

hock

s

Time since political shocks

SET index dynamics following political shocks

(rebase 100 one day before shock)

7 Months

2010 (Protest at Ratchaprasong)

1992 (Black May)

2013 (the amnesty bill

+ QE Tapering)

As ofJun25, 2014

2008 (PAD occupied the

Suvarnabhumi airport

+ Subprime crisis)

3 Months5 Months

13 Months

Source : The stock exchange of Thailand


12

• 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) :

Fully functioning government is expected in September

Mission Statement and Policies of the Head of the National Council for Peace and Order (NCPO)

http://www.mfa.go.th/main/en/media-center/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

Phase III (15+ months)

• Set up reform committees to

draft new constitution

•Put in place a new constitution

(mid-2015)

•New election

Phase II (Present)

• Thailand adopted a temporary constitution

• 200 members of national legislative assembly

were appointed.

•An interim government is expected in

September

•Enact reform initiatives

Phase I (May 22nd – July 2014)

• National Council on Peace and Order

(NCPO) took charge, and ensured order

and reconciliation

• Urgent economic measures were

implemented. FY2015 budget of 2.575

trillion baht has been approved.

•All curfews have been lifted for all areas

in the country.

























http://www.mfa.go.th/main/en/media-center/3756




13

• 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.


NCPO’s Economic Policy Framework

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

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%

Private sector

confidence

+

Foreign investor

confidence

Economic

growth

14

• Infrastructure investments in the pipeline will boost the country’s potential, support regional connectivity, and enhance logistic efficiency.


The development of transportation infrastructure US$84 billion

over the next 8 years

1.Railway network:

Dual-track railways of 17 routes, new diesel locomotives, and

upgrading the railway signaling system.

2.Public transportation in Bangkok and vicinities:

Additional 10 metro rails and sky trains, NGV buses, road and bridge

construction in Bangkok and its vicinities.

3.Regional connectivity road and motorway:

Motorways to connect major cities and economic zones, roads to

support tourism and agricultural sector.

4.Water freight transportation network:

Developments of Pakbara port, cruise ship port, rail freight system

straight through Laem-cha-bung port, and Pah-sak river freight system.

5. Airport capacity expansion:

Capacity expansion for Suvannabhum airport, Don muang airport, and

Phuket airport.

Railway

network,

20.8

Bangkok

public

transportati

on, 37.3

Regional

connectivity

road and

motorway,

19.9

Water

freight, 3.1

Airport

capacity

expansion,

2.8

Transportation Infrastructure Development

(US$ Billion)

Source: Office of Transport and Traffic Policy and Planning






100.879.6

53.730.1 21.6

-8.8 -10.6 -27.2

92.976.8

46.768.6

9.3 21.22.0

-35.4

Philippines Thailand Malaysia Indonesia Singapore India Vietnam China

In USD In local currency

25.7 24.318.4 18.1 17.3

7.92.4 2.0

19.122.3

16.6 15.7 18.1

6.50.2

4.0

Indonesia India Philippines Thailand Vietnam Singapore Malaysia China

In USD In local currency

4-year (2010-2013) index performance (%); data at end Dec 2013

YTD index performance and movement

(%); as of Jul 31, 2014

• YTD, SET index performance is approximately 18% in USD or 16% in local currency.

Source : Bloomberg, The stock exchange of Thailand

YTD index performance and movement

Dec 31, 2013=100

16

III. Thai listed companies

as of Jul 31, 2014

80

90

100

110

120

130

31/1

2/20

13

31/1

/201

4

28/2

/201

4

31/3

/201

4

30/4

/201

4

31/5

/201

4

30/6

/201

4

31/7

/201

4

Thailand

MSCI Emerging Markets Index

MSCI BRIC Index

MSCI World Index

1.21

2.14 2.14

2.94 3.03 3.20 3.23 3.073.44

1.06

1.97 2.16

2.99 3.06 3.10 3.15 3.233.64

Korea Indonesia Philippines Taiwan Thailand China Malaysia Singapore Hong Kong

End of July 2013 End of July 2014

19.3016.48 15.35 15.12 13.63 14.62

10.49 9.75 8.56

19.33 16.66 16.42 15.17 14.95 14.92

11.49 10.58 8.75

Philippines Malaysia Indonesia Taiwan Thailand Singapore Hong Kong Korea China

End of July 2013 End of July 2014

III. Thai listed companies • SET’s forward P/E ratio is attractive compared to peers, while market dividend yield is around 3.06%.

(unit: %)

Market Dividend Yield

Forward P/E ratio

Source : Bloomberg, The stock exchange of Thailand

17

(unit: times)

18


• Thai listed companies have become global and regional players.

http://www.pttep.com/th/index.aspx

http://www.pttep.com/th/index.aspx

http://www.minorinternational.com/Home/Index.php



http://www.thaiuniongroup.com/en/home.ashx


http://www.banpu.com/en/index.php

http://www.indoramaventures.com/index.php?lang_selection=en





http://www.indoramaventures.com/index.php?lang_selection=en

http://www.shangri-la.com/

19

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

47

36

1610 10

4 6 3

81

53

3124

2014 12 10

0

10

20

30

40

50

60

70

80

90

2006 2013


* Data of 115 companies which reported revenue of trade and investment abroad FY 2006 - 2013

As of 2013, the number of Thai

listed companies invested

abroad totaled 109 companies

out of total 596 listed companies.

Revenue of trade and investment abroad to total revenue*

38

4341

4542

44 44 45

0

5

10

15

20

25

30

35

40

45

50

2006 2007 2008 2009 2010 2011 2012 2013

(%)

20

Source : IMF's World Economic Database, forecast as of April 2014


2013 GDP and Expected 2015-2018 GDP growth

USD 57 billion

7.8%

USD 156 billion

5.7%

USD 16 billion

7.3%

USD 10 billion

7.8%

USD 425 billion

3.8%

ChinaUSD 8,227 billion

7.3%

MalaysiaUSD 328 billion

5.0%

• In particular, Thailand stands to benefit from our connectivity to high-growth CLMV.

SET as connectivity for investing in CLMV

• Equity investment in listed companies operating in and exporting to CLMV

• Investing in holding companies operating abroad

• Infrastructure funds for infrastructure projects in CLMV

Holding company listing

• 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.• Market Capitalization of CKP as of July31, 2014 with 17,270 million baht

The first holding companies operating abroad listed on SET

• AMATA VN invest in industrial estate and commercial project in Vietnam.• Under filing process.


Holding company

(Thai incorporated)

Thai/Foreign

subsidiary

(core business)

Shareholders

(Thai/foreign)

50%

(must be maintained)

Company to be listed by 2014:

• 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.

21

III. Thai listed companies• Holding company: a new investment vehicle to match investors in SET to businesses operating abroad.

Presenter

Presentation Notes

Next, SET integrated business model

Infrastructure fund listing

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.

3 infrastructure funds listed on SET

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


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

0

100

200

Jan-

13

Feb-

13M

ar-1

3

Apr-1

3

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14M

ar-1

4

Apr-1

4

May

-14

Jun-

14

Jul-1

4

(billion baht); data as of Jul31, 2014

Market capitalization of BTS and BTSGIF

BTSBTSGIF

BTSGIF first day trade

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)

0

20

40

Jul-1

3

Aug-

13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4


Market capitalization of AMATA and ABPIF

AMATA

ABPIF

ABPIFfirst day trade

-50

50

150

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4


Market capitalization of TRUE and TRUEIF

TRUE

TRUEIF

TRUEIFfirst day trade

22

III. Thai listed companies• Infrastructure funds are new SET investment vehicles and will support both domestic and regional infrastructure

developments.

Presenter

Presentation Notes







*Share turnover velocity is calculated by {Monthly EOB Domestic Share Turnover / Month-end Domestic Market Capitalization) *12

Source : World Federation of Exchanges (WFE).


24

• SET has the highest average daily turnover in ASEAN, during the past 3 years.

Share turnover velocity* (2011 - Jun 2014)

(%)

Average daily turnover (2008 - Jun 2014)

(million USD)

19

Jun 1485

3226

0

500

1,000

1,500

2,000

2,500

2008

Mar

-10

Aug-

10

Jan-

11

Jun-

11

Nov

-11

Apr-1

2

Sep-

12

Feb-

13

Jul-1

3

Dec

-13

May

-14

Thailand Singapore Malaysia

Indonesia Philippines

1,409Jun 14

784

552

176 0

20

40

60

80

100

120

140

Jan-

11

May

-11

Sep-

11

Jan-

12

May

-12

Sep-

12

Jan-

13

May

-13

Sep-

13

Jan-

14

May

-14

Thailand Singapore Malaysia

Indonesia Philippines

30617

19% 18% 23% 24% 22% 24%

61% 62% 55% 55% 57% 56%

7% 8% 9% 8% 9% 10%

13% 12% 13% 13% 13% 10%

2009 2010 2011 2012 2013 2014 (YTD)

Foreign investors Local retail investors

Local institutes Proprietary trading

• 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.


25

SET index and net buying position in SET and mai

Unit: million baht (LHS), index (RHS); cumulative Dec 31, 2013 - Jul 31, 2014

Transactions by investor type

(3,542) (5,347)

(average trading value: million baht)

(6,713) (7,830) (10,940)

(11,113) (18,018) (16,287) (17,765) (28,747)

(9,080)

(21,500)

(1,214) (2,205) (2,586) (2,512) (4,294)

(2,356) (3,495) (3,886) (4,198) (6,347)

(3,814)

(3,750)


1,0001,0501,1001,1501,2001,2501,3001,3501,4001,4501,5001,5501,600

-50,000

-30,000

-10,000

10,000

30,000

50,000

2 Ja

n 14

2 Fe

b 14

2 M

ar 1

4

2 Ap

r 14

2 M

ay 1

4

2 Ju

n 14

2 Ju

l 14

Local institutes ProprietaryTradingForeign investors Local retail investorsSET index

Number of listed companies having market capitalization

>= $1 billion and daily average trading value* >= $10 milliondata as of 31 Jul 2014

*Average daily trading value during 26 Dec 2013 – 31 Jul 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

Market capitalization

(billion USD); data as of 31 July 2014

685

545

438 429

Singapore Malaysia Indonesia Thailand

25

20

108

Thailand Singapore Malaysia Indonesia

26

• SET has a relatively larger number of liquid large-cap listed companies compared to peers.


18 9 13 21 8 8 3 1 8 7 4 1 19 34 34 3960

36 43 43 28 405 1 0 2 10 24 29

50 5522 16 16 22 15 16 24 38 20

18

454

652

0

100

200

300

400

500

600

700

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*

Source: SETSMART (Include Property Funds & IFF)

* As of end-July 2014

Newly listed company (SET & mai & PFUND & IFF)

Total listed company (SET & mai & PFUND & IFF)

No. of companies

• Number of listed companies and securities has consistently increased from new IPOs, especially in last 3 years.


27

Breakdown of number of listed companies and securities IPOs (2012-2014 latest) Total outstandingStocks: SET 30 498Stocks: mai 29 100Property funds & REIT 17 51Infrastructure funds 3 3

Total IPOs 79 652

Source: Asian Corporate Governance Association

The World Bank corporate governance country

assessment 2012ACGA ’s CG Watch market scores: 2007 to 2012

• Thailand is recognized as a leader in capital market corporate governance.

83 83 7685 87 83

64 69 62 65 66 63

Thailand (2012)Selected Asia (Indonesia, India, Malaysia, Thailand, Philippines, Vietnam)

67.7%62.3% 55.7%

48.9%43.3%

28.4%

75.4% 71.7% 71.7%58.0% 54.6%

33.9%

0%

20%

40%

60%

80%

Thailand Malaysia Singapore Philippines Indonesia Vietnam

2012

2013

ASEAN corporate governance scorecard 2012 - 2013 *

* 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

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: The World Bank

28


Developed Advanced Emerging Secondary Emerging FrontierAustralia Brazil Chile ArgentinaAustria Czech Republic China Bahrain

Belgium/Luxembourg Hungary Columbia BangladeshCanada Malaysia Egypt Botswana

Denmark Mexico India BulgariaFinland Poland Indonesia Cote d’lvoireFrance South Africa Morocco Croatia

Germany Taiwan Pakistan CyprusGreece Thailand Peru Estonia

Hong Kong Turkey Philippines GhanaIreland Russia JordanIsrael Thailand KenyaItaly UAE Lithuania

Japan MacedoniaNetherlands MaltaNew Zealand Mauritius

Norway NigeriaPortugal Oman

Singapore QatarSouth Korea Romania

Spain SerbiaSweden Slovakia

Switzerland SloveniaUK Sri Lanka

USA TunisiaVietnam

Source : FTSE, MSCI, DJSI

• 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 Thailand3. BANPU: Banpu4. BBL: Bangkok Bank5. BEC: BEC World6. BGH: Bangkok Dusit Medical Services7. BTS : Bangkok Mass Transit System8. CPN: Central Pattana9. CPF: Charoen Pokphan Foods10. CPALL: CP All11. GLOW: Glow Energy12. HMPRO: Home product center13. IVL: Indorama Ventures14. IRPC: IRPC15. KBANK: Kasikornbank16. KTB: Krung Thai Bank17. MINT: Minor international18. PTT: PTT19. PTTGC: PTT Global Chemical20. PTTEP: PTT Exploration & Production21. SCB: Siam Commercial Bank22. SCC: Siam Cement23. TMB : Thai Military Bank24. TOP: Thai Oil25. TRUE: True Corporation26. BH: Bumrungrad Hospital

26 Thai stocks in MSCI Standard index (as of May 2014)

29


3 Thai stocks in Dow Jones Sustainability Index (DJSI) World Index(as of May 2014)

FTSE Global

Equity Index

Series

Country

Classification (as of May 2014)

DJSI World component Invited list for DJSI 2014(Number of companies)

1. SCC: Siam Cement Co. Malaysia 372. PTT: PTT PCL Thailand 313. PTTGC: PTT Global Chemical PCL Singapore 26

Indonesia 18

* 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 30

• 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)

8,498 10,381 10,212 17,690 16,467

23,218

41,385

154 600 4,006

6,468 8,849

34,351

60,270

1,397 4,014

16,479 14,927

9,009

2,751

977

185 393 444

508 829

462

2008 2009 2010 2011 2012 2013 Jan - Jul31,

2014

Others*

Currency futures

Gold futures

Single stock futures

SET50 index futures

CAGR 2008-2013 50%

8,837Total 12,771 18,676 41,145 48,823 68,017 108,868**


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.

31

Post-Trade Services

Clearing & settlement

Central Depository

Securities and fund

registration

Derivatives

Stock index futures

Single stock futures

Gold / Silver futures

Derivative warrants

Interest rate futures

Oil futures

Currency futures

Sector Index Futures

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

Fixed Income

Corporate bonds

Government and state

enterprises bonds

SET Information Services

SET listed companies &

product information database

Exchangeand

Trading

Post-Trade Services

Data, System and Other Services

Integrated

Model

Appendix: Trading at SET

32

Presenter

Presentation Notes

Next slide will tell you about our varieties product of SET. We have got equity, derivatives, fixed income, post-trade services and SET information services to brokerage firms and market data vendor.

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.

2 options to get all benefits from investing in Thai stocks.

Option 1:

Mostly for strategic shareholders

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.

Option 2:

General option

Appendix: Trading at SET

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.

NVDR, 41.16%

Local Shares, 45.77%

Foreign Shares, 13.07%

Proportion of trading value by type

of stocks by foreign investors

Source: SET , May2012 - Apr2013

33

http://www.set.or.th/

Allow SET to broadcast VDO File of Company’s Analyst Meeting

Opportunity Day Webcast

1. Website

www.set.or.th/oppday

www.settrade.or.th/oppday

2. iPhone & Smart Phone

3. Application on iPad & Android Tablet

Live from Meeting room

Appendix: Opportunity Day Webcast

3 channels to view and join Live opportunity Day

Note: Presentation in English is currently still limited. However, the company presenting in English are increasing gradually.

• Quarterly updated info of many listed companies are available on opportunity day webcast and application on tablet.

34

1

2

Application on iPad & Android Tablet

This application can be searched “OppDay” in AppStore or

PlayStore

Appendix: Dow Jones Sustainability Index (DJSI)

35

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

Appendix: FTSE ASEAN Index Series

36

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

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

37

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.

38

http://www.set.or.th/en/gms_exchanges

IPOs

39

• IPOs size hit SET’s all time high records in 2013

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

IPOs with market

capitalization over 300

million USD

522

2,473

891

2,543

5,791

3,293 3,160 3,2052,373

1,0391,839 1,319

3,249

11,275

2,847

0

2,000

4,000

6,000

8,000

10,000

12,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Market Cap. (Mil.USD)

Year

Market Capitalization of New Listed Companies (2000 - 2014)

Appendix: IPOs summary (year-to-date)• This year SET’s IPOs might reach 8 billion USD; many of IPOs in pipeline.

40

.

Trade (Mkt. Cap 3,853 Mil.USD)SET : 9 Companies 2,592 Mil.USDMai : 4 Companies 241 Mil.USDPFUND/REIT : 4 Funds 1,020 Mil.USDIFF : - Fund - Mil.USDRTO : - Company - Mil.USD

New Listing

(SET + mai)

Companies having filing approval (Mkt. Cap 1,028 Mil.USD)SET: : 2 Companies 352 Mil.USDMai : 4 Companies 143 Mil.USDPFUND/REIT : 5 Funds 533 Mil.USDIFF : - Fund - Mil.USD

Companies under SEC filing and expected to IPO within 2014 (Mkt. Cap 2.8 Bil.USD)SET : 6 Companies 500 Mil.USDmai : 9 Companies 124 Mil.USDPFUND/REIT : 5 Funds 649 Mil.USDIFF : 1 Fund 1,515 Mil.USD

Data are as of 30 June 2014

Remark: Companies are already traded or under filing at the Securities and Exchange Commission

41

Highlight of IPOs• Many of new IPOs and upcoming IPOs with market capitalization over 300 mil.USD

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

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

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

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

Presenter

Presentation Notes


http://www.ktisgroup.com/index

Documents

III. Thai listed companies