title of presentation (arial 39 pt) · plus stronger regional demand for final consumption....

Dr. Pakorn PeetathawatchaiChief Strategy and Finance OfficerThe Stock Exchange of Thailand February 2014

ThailandOpportunities Amid Challenges: Focusing on Fundamentals

Opportunities amid challenges: focusing on fundamentals

• 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

• Thai listed companies continue to be resilient

• Thailand’s capital market and SET play a major role in financialconnectivity

Source: Office of the National Economic and Social Development Board , Department of Tourism, Bank of Thailand, IMF’s World Economic Outlook

(%YoY) 2012 2013 2014f

GDP Growth 6.4 2.9 3.0-4.0

- Private consumption 6.6 0.2 1.4

- Private investment 14.6 -2.8 3.8

- Public consumption 7.4 4.9 2.0

- Public investment 8.9 1.3 0.3

- Export value of goods (USD) 3.2 -0.2 5.0-7.0

- Import value of goods (USD) 7.8 -0.4 5.7

- Number of tourists (%YoY) 16.0 19.6 3.0

- Number of tourists (million) 22.3 26.7 27.5

• The Thai economy has shown impressive resilience to shocks. The economy is expected to grow at 3 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

2.9

3.5

54.4 4.7 4.7

0

1

2

3

4

5

6

7

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

(%)

3

Thailand’s growth potential

ActualForecast*

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

1/ International reserves and net forward positionsSource: Bank of Thailand/ IMF's World Economic Outlook Database

External debt and international reserves (billion USD)

60

140

190

0

50

100

150

200

250

2005

2006

2007

2008

2009

2010

2011

2012

Nov-1

3

Dec-1

3

Short-termGross External DebtNet international reserves 1/

CountryCurrent Account

(% of GDP)

Fiscal Balance

(% of GDP)

HeadlineInflation

(%)

Thailand -0.6 -2.0 2.2

India -4.4 -8.5 10.9

Indonesia -3.4 -2.2 7.3

Brazil -3.4 -3.0 6.3

Turkey -7.4 -2.3 7.7

South Africa -6.1 -4.9 5.9

Current account, fiscal balance and inflation in 2013

• Thailand is distinct from other fragile economies. • External vulnerabilities appear manageable with Thailand’s strong foreign reserve positions, and

slight current account deficit.

4


Source: Bank of Thailand, Fiscal policy office

-6

-4

-2

0

2

4

6

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

headline inflationcore inflationpolicy interest rate

Inflation (%YoY)

1.670.91

2.25Dec -13

Public debt to GDP and fiscal deficit to GDP

0

20

40

60

80

-6

-4

-2

0

2

4

6

2005

2006

2007

2008

2009

2010

2011

2012

Dec-1

3

Fiscal balance/ GDP (LHS)Public debt/ GDP (RHS)

(%)(%)

45.5

-2.0

• Domestic vulnerabilities remain contained:- Strong commitment to fiscal discipline reflect sound fiscal positions and well-managed public debt- Subdued inflation leaves room for accommodative monetary policy stance

Public debt to stay below 60 percent of GDP under fiscal sustainability framework

5


Source: Bank of Thailand, Fiscal policy office

75

80

85

90

95

100

-5

0

5

10

15

20

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

Private credit growth (LHS)

Loan to deposit (RHS)

Private credit growth and loan to deposit ratio

96.6Dec -13

11.3

(% YoY) (%)

Capital adequacy and Non-performing loans

05101520253035404550

02468

1012141618

1998

2000

2002

2004

2006

2008

2010

2012

Tier1 (LHS)CAR (LHS)Gross NPLs to total loan (RHS)

(%) (%)16.4

12.1

2.2

• Domestic vulnerabilities remain contained:- Financial sector resilience is strengthening. Credit boom is gradually cooling off while bank capitalization and

asset quality continue to improve.

6


70

80

90

100

110

end2

012

Feb-

13

Apr-1

3

Jun-

13

Aug-

13

Oct-1

3

Dec-1

3

4 Fe

b-14

Singapore Thailand Malaysia

Philippines Indonesia

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

• The Thai Baht has weakened, though has been less affected by the regional turbulence amid QE tapering. • Slight Baht depreciation could boost Thailand’s export competitiveness.

Foreign net capital flowExchange rate (%) Rebased end 2012 = 100 (billion USD)

-24%

-11%-9%-7%-4%

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

0.5

-0.6

0.2

-0.7 -0

.2 -1

.8 0.0

-1

.2 0.3

0.0

-1.5 -1

.2

-0.4

-2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0

Jan-

13

Mar-1

3

May-1

3

Jul-1

3

Sep-

13

Nov-1

3

Jan-

14

Bond market Equity market

7


22.0

4.3 7.4 8.315.3 13.6 13.6

26.0

8.3 10.9 11.9 10.0 9.8 9.7

0

10

20

30

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

22.0 26.0

14.0

29.0

4.511.8 9.6

26.0

11.8 8.31.4 2.6

-5.2

0.8

-100

10203040

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

• Exports return as a bright spot, supported by stronger global and regional demand.• Exports to ASEAN is gaining momentum, where Thailand’s exports to ASEAN reached 26% of total

exports in 2013 and its trade balance with ASEAN is already in a surplus. • Border trade with CLMV is growing robustly and will likely do so for years to come.

Thailand’s exports growth by destination (value in term of USD)

Source: The customs of Thailand, IMF's World Economic Database, forecast as of October 2013

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 2016ASEAN5 6.2 5.0 5.4 5.5 5.4

CLMV* 5.7 5.9 6.0 6.0 6.0CLMM** 5.6 5.0 5.2 5.4 5.4

China 7.7 7.6 7.3 7.0 7.0

US 2.8 1.6 2.6 3.3 3.5EU (27) -0.3 0.0 1.3 1.6 1.8Japan 1.9 1.9 1.2 1.1 1.2

(%)

8

(%)


Source: The customs of Thailand, World trade organization

9

• G3’s economic recovery benefits Thailand two-fold:- Thailand’s direct trade with G3 through exports of about 30% of total Thai exports.- Thailand’s exports of intermediary products to ASEAN and China as part of the supply chain to G3,

plus stronger regional demand for final consumption.


Thailand

US, EU (27), Japan

Final consumption exports: 12% of total Thai exports

Intermediary product exports: 26% of total Thai exports

Direct trade: Exports to G3 30% of total Thai exports

ASEAN (9), China

Direct trade: Exports to G3 30% of total ASEAN (9) exports

Direct trade: Exports to G3 40% of total China exports

10

A new government could be formed by Q4 2014.

General election could be completed in Q2 2014

The government is processing to setup the parliament in H1 2014. The key changes are:

• reforming political system

• resolve populism policies

• PM and some politicians in caretaker government are in lawsuit.

Political resolution is expected in Q2 2014.

Econ

omic

grow

th

The incumbent’s policies

• Tax reform • Land reform• ASEAN connectivity

• Pro-fiscal stimulus• Pro-populism policy• Pro-welfare

• Reducing the cost of living for Thai people•Increasing the net purchasing power among mid to lower income people•Pro-business•Pro-investment•Planned public infrastructure investment

The opposition’s policies

• Political resolution is expected later in the year; economic policies will continue to be pro-growth and supportive of domestic demand no matter which party takes office.

• Part of planned infrastructure investments are likely to be postponed, but will help to boost the country’s competitiveness and promote inclusive growth once implemented.


Developed markets are recovering

• Global activities strengthened during the second half of 2013 and expected to improve further in 2014–15, largely due to the recovery in the advanced economies.

Thai Companies are growing beyond Thailand

The volatility of international capital flows

• Continued Fed’s tapering may trigger more capital outflows, and deeper-than-expected slowdown in key emerging economies.

Key success factors for the Thai economy in 2014:

Political instability• The parliament will likely be dissolved in H1 2014 followed by new election.

• Over the last 5 years of political uncertainty, Thai listed companies have been resilient, as profitability remains strong and regional investment expands.

Upside gain

Downside risks Key challenges facing the Thai economy in 2014:

• Although current external and internal environments remain challenging, the resilience of underlying economic fundamentals will allow the Thai economy to weather the storm and reap global opportunities.

11




• Thailand’s capital market and SET plays a major role in financialconnectivity


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

-35.4Philippines Thailand Malaysia Indonesia Singapore India Vietnam China

In USD In local currency

10.4

0.4

-5.0 -4.2 -2.4-5.4

3.5

-4.1

10.3

2.6

-3.4 -3.1 -1.9-4.4

3.4

-3.9

Vietnam Philippines Malaysia India Thailand Singapore Indonesia China

In USD In local currency

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

YTD index performance and movement(%); as at Jan 31, 2014

• SET 2010-2013 index performance was among the best in the world. • In the short run, SET index performance YTD is around -2.4% in line with other EMs. Nevertheless, SET

index to date outperformed Singapore, Malaysia and MSCI EM and World Indices.

Source : Bloomberg, The stock exchange of Thailand

90

95

100

105

31/12

/2013

5/1/20

14

10/1/

2014

15/1/

2014

20/1/

2014

25/1/

2014

30/1/

2014

ThailandMSCI World IndexMSCI Emerging Markets IndexMSCI BRIC Index

YTD index performance and movementDec 31, 2013=100

13

Thai listed companies

17.814.5 15.0 14.2 14.9 13.5

9.9 11.5 10.3

16.6 15.9 14.4 13.4 13.3 11.6 9.8 9.7 7.9

Philippines Malaysia Taiwan Indonesia Singapore Thailand Korea Hong Kong China

Jan2013 Jan2014

• SET’s forward P/E ratio is attractive compared to peers, while market dividend yield is around 3.4%.

(%)

Market Dividend Yield

Forward P/E ratio

3.0 2.8 3.7 2.6 2.4 3.42.1 2.0 1.3

3.5 3.5 3.4 3.4 3.1 2.8 2.3 2.2 1.3

Hong Kong Singapore Malaysia Thailand China Taiwan Philippines Indonesia Korea

Jan2013 Jan2014


14


2.2 2.1 1.6

-1.6 -2.1 -2.7-5.0 -5.1 -5.2

Financial SET Technology Consumption Property Services Manufacturing Agri & Food Resources

YTD sector index performance

(%); as at Jan 31, 2014

• With strong underlying growth opportunities, many sectors are set to quickly recover. • Financial and technology outperformed, as reported earnings improved in Q4 and FY2013.• However, manufacturing, agri & food, and resource industries dropped, as Q4 earnings are expected

to decline.

&construction

189.2146.5 113.6

80.3 76.8 71.8 66.7 37.3 16.7

Services Technology Agri & Food Property SET Manufacturing Financial Consumption Resources

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

&construction

Source : The stock exchange of Thailand

15


16

Thai listed companies• Thai listed companies have become global and regional players.• Number of Thai listed companies invested abroad expanded significantly by 50 percent

between 2006-2012.

Number of Thai listed companies invested abroad

47

36

1610 10

4 6 3

68

46

2519 19

11 9 7

0

10

20

30

40

50

60

70

80

2006 2012


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/

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

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

17

• Foreign trade and investments of Thai listed companies have generated significant portions of foreign revenues. During 2006-2013, revenue from both investment abroad and exports grew rapidly at the annual rates of 19% and 9%, respectively.

• Revenue of trade and investment abroad reached 40 percent of total revenue of listed companies in recent years.

Notes: * 42 listed companies revenue, ** 85 listed companies revenueSource : The stock exchange of Thailand

Foreign income of listed companies

3,401 4,027 4,8

64 5,560

6,023

9,290

11,50

4

7,474 8,3

71 9,591

8,375 10

,252 12

,701 15,13

3

02,0004,0006,0008,000

10,00012,00014,00016,000

2006 2007 2008 2009 2010 2011 2012Revenue from investment abroad* (19% CAGR)Revenue from exports** (9% CAGR)

(million USD)


Revenue of trade and investment abroad to total revenue(%)

26 2831

34 3336

40

05

1015202530354045

2006 2007 2008 2009 2010 2011 2012

18

Source : IMF's World Economic Database, forecast as of October 2013


2012 GDP and Expected 2015-2018 GDP growth

USD 53 billion7.0%

USD 138 billion5.5%

USD 14 billion7.5%

USD 9 billion7.6%

USD 377 billion4.7%

China

USD 8,227 billion7.0%

MalaysiaUSD 303 billion

5.2%

• 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.

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.

19

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

abroad.

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 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14

(billion baht); data as at Feb 5, 2014Market 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-13 Sep-13 Nov-13 Jan-14

(billion baht); data as at Feb 5, 2014Market capitalization of AMATA and ABPIF

AMATAABPIF

ABPIFfirst day trade

-50

50

150

Oct-13 Dec-13 Feb-14

(billion baht); data as at Feb 5, 2014Market capitalization of TRUE and TRUEIF

TRUE

TRUEIFTRUEIFfirst day trade

20

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

infrastructure developments.



• Thailand’s capital market and SET plays a major role in financial connectivity


• Capital market continues to deepen. • The size of equity and bond markets has surpassed total bank lending since early 2000s. In 2013,

despite financial turbulences, bond and equity market capitalization remained nearly twice bank lending.


22

Thailand’s capital market and SET

0

300

600

900

1,200

1978 1983 1988 1993 1998 2003 2008 2013

Bank lending Equity Bond

Equity(Market

capitalization)USD 356 Billion

Bond Outstanding

USD 274 Billion

Bank lendingUSD 376 Billion

Outstanding value of Bank lending, Equity market and Bond marketUnit: Billion USD

Share turnover velocity* (2011 – 2013) (%)

Average daily turnover (2008 – 2013)(million USD)

*Share turnover velocity is calculated by {Monthly EOB Domestic Share Turnover / Month-end Domestic Market Capitalization) *12Source : World Federation of Exchanges (WFE)


23

• SET’s average daily turnover is around USD 1,535 million, up from USD 1,000 million in 2012.

0

20

40

60

80

100

120

140

Jan-

11Ap

r-11

Jul-1

1Oc

t-11

Jan-

12Ap

r-12

Jul-1

2Oc

t-12

Jan-

13Ap

r-13

Jul-1

3Oc

t-13

Thailand Singapore Malaysia

Indonesia Philippines

33

Dec-13

48

281813

0

500

1,000

1,500

2,000

2,500

2008

Feb-

10Ju

n-10

Oct-1

0Fe

b-11

Jun-

11Oc

t-11

Feb-

12Ju

n-12

Oct-1

2Fe

b-13

Jun-

13Oc

t-13

Thailand Singapore Malaysia

Indonesia Philippines

779Dec-13

753

274455

130

19% 18% 23% 24% 22%33%

61% 62% 55% 55% 57%45%

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

13% 12% 13% 13% 13% 13%

2009 2010 2011 2012 2013 Jan-14

Foreign investors Local retail investors

Local institutes Proprietary trading

• SET has a well diversified investor base. • Local retail investors have played a key role in providing liquidity to SET and stabilizing SET index amid

volatile international capital flows.


24


SET index and net buying position in SET and maiUnit: billion baht (LHS), index (RHS); as at end Jan 2014

Transactions by investor type

1,474 1,542 1,5611,598

1,5621,452

1,423 1,2941,383 1,443 1,371 1,299 1,274

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

-80

-60

-40

-20

0

20

40

60

80

Local institutes Proprietary tradingForeign investors Local retail investors SET index

(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)

(10,443)

(14,247)

(1,214) (2,205) (2,586) (2,512) (4,294)(2,356) (3,495) (3,886) (4,198) (6,347)

(3,095)

(3,989)

Number of listed companies having market capitalization >= $1 billion and daily average trading value* >= $10 milliondata as at Jan 2014

*Average daily trading value during Nov 2013 – Jan2014**Large-cap listed companies mean companies having market capitalization>= $1 billion and daily average trading value >= $10 millionSource : World Federation of Exchanges (WFE), Bloomberg

Market capitalization(billion USD); data as at Dec 2013

744

500

354 347

Singapore Malaysia Thailand Indonesia

22

17

108

Thailand Singapore Malaysia Indonesia

25

Thailand’s capital market and SET• SET has a relatively larger number of liquid large-cap listed companies compared to peers.

Source: Asian Corporate Governance Association

The World Bank corporate governance country assessment 2012ACGA ’s CG Watch market scores: 2007 to 2012

• Many agencies recognize Thailand as a leader in capital market corporate governance.

83 83 76 85 87 8364 69 62 65 66 63

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

67.7% 62.3% 56.1% 48.9% 43.4%

0%

20%

40%

60%

80%

Thailand Malaysia Singapore Philippines Indonesia

ASEAN corporate governance scorecard*2012

•average total corporate governance score of the country’s 100 largest listed companies based on market capitalizationSource : Joint Initiative of the ASEAN Capital Markets Forumand 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

26


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

FTSE Global Equity Index Series Country Classification as at March 2012

Source : FTSE, MSCI

• The Thai capital market was upgraded from the Secondary Emerging Market to Advanced Emerging Market status by FTSE in March 2012.

• 26 Thai stocks are now in the MSCI Standard index.1. ADVANC: Advanced Info Service2. AOT: Airports of Thailand3. BANPU: Banpu4. BAY: Bank of Ayudhya5. BBL: Bangkok Bank6. BEC: BEC World7. BGH: Bangkok Dusit Medical Services8. BTS : Bangkok Mass Transit System9. CPN: Central Pattana10. CPF: Charoen Pokphan Foods11. CPALL: CP All12. GLOW: Glow Energy13. HMPRO: Home product center14. IVL: Indorama Ventures15. IRPC: IRPC16. KBANK: Kasikornbank17. KTB: Krung Thai Bank18. MINT: Minor international19. PTT: PTT20. PTTGC: PTT Global Chemical21. PTTEP: PTT Exploration & Production22. SCB: Siam Commercial Bank23. SCC: Siam Cement24. TMB : Thai Military Bank25. TOP: Thai Oil26. TRUE: True Corporation

26 Thai stocks in MSCI Standard index (as of November 2013)

27


* Others comprise of Oil futures, SET50 Index options, Silver futures, Interest rate futures and Sector futures Source: SETSMART

28

Thailand’s capital market and SET• 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 23,048 154 600

4,006

6,468 8,849

34,351 24,545

1,397 4,014

16,479 14,927

9,014

5,206

2,751

977

582

185 393 444

508 829

457

311

2008 2009 2010 2011 2012 2013 Jan-14

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 53,692

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.

29

Further information: http://www.set.or.th/jp/info.html

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 futuresCurrency futuresSector 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

30

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, May 2012-April 2013

31

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

Appendix: NEXT FUNDS Thai Stock SET50 Exchange Traded

Fund

32

Source: Tokyo Stock Exchange

Fund Outline

Underlying Index SET 50 index

Management Company Nomura Asset Management

Listing Date 12 May 2011 at Tokyo Stock Exchange

Market Price (*1) 2,534 JPY as of 31 Jan 2014

12 month Dividend Yield (*3) 1.54%

Market Price (Reference) S&P 500

Past 3 months -11.86% +5.53%

Past 6 months -9.44% +9.95%

Past 1 year -10.14% +33.19%

Past 3 years - +72.86%

Past 5 years - +145.36%

Name Weight

PTT PCL 8.90%

Advanced Info Service 7.20%

PTT Exploration & Production 6.70%

Siam Commercial Bank 5.70%

Siam Cement PCL-NVDR 5.00%http://www.tse.or.jp/english/rules/etfs/list/pamphlet/1559-e.pdf

Return on Investment

Constituents (as of 29 Nov 2013)

Performance

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

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.

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

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title of presentation (arial 39 pt) · plus stronger regional demand for final consumption....

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