February 24, 2017 OUTPERFORM

COMPANY RESEARCH | Company Update

The Erawan Group
(ERW TB)
Share Price: Bt4.42 Target Price: Bt6.00 (+35.7%)

Book now, good price guaranteed
 Plans to expand hotel portfolio from 41 to 95 with Bt9.1bn capex
budget for 2017-2020
 Targeting 10% yoy revenue growth in FY17 comprising 7%
organic growth and 3% growth from nine new hotels
 OUTPERFORM, raised DCF-based TP to Bt6.0/sh (from
Bt5.5/sh), implying 32x FY17F PE; top pick in the sector
To open four more midscale & economy hotels by 2019
At the analyst briefing yesterday, ERW revealed its investment plan for
the next four years. It plans to almost double asset size from Bt11.7bn
currently supported by a Bt9.1bn capex budget for 2017-2020. This
would expand its hotel portfolio from 41 to 95 by 2020. ERW said the
first project would comprise a midscale hotel (Novotel) and an economy Teerapol UDOMVEJ
hotel (Ibis Styles) on Sukhumvit 4 (Soi Nana). Both hotels will be in the 662 - 659 7000 ext 5012
same building and have a total of 318 rooms. It is scheduled to open in teerapol.udomvej@krungsrisecurities.com
4Q18. The second project would include two hotels, also in one building,
under Mercure and Ibis and would be located on Sukhumvit 24 near The Key Data
Emporium. This will have 500 rooms and is scheduled to open in 4Q19. 12-mth High/Low (Bt) 5.30 / 3.92
Market capital (Btm/US$m) 11,041.9 / 315.6
Expect FY17F core profit to grow by 34%
3m avg Turnover (Btm/US$m) 28.1 / 0.8
Management expects revenue to grow by 10% this year, comprising 7% Free Float (%) 40.0
organic growth from higher occupancy rate and higher room rates. The Issue Shares (m shares) 2,498
remaining 3% growth would come from nine new Hop Inn hotels (8 in Major shareholders:
Thailand, 1 in Philippines) which will open this year and increase the - WATTANAVEKIN SUKAKAR 15.1
number of Hop Inn rooms by 41% to 2,652. We conservatively assumed - CITY HOLDING CO LTD 8.2
- WANNAMETHEE VANSAMOR 6.0
only 8% revenue growth this year and forecast core profit would grow by
34% to Bt464m. This is 8% higher than consensus estimate because we Share Price Performance
believe the market has overlooked one key point – ERW will start to pay
a fixed rent of Bt72.5m plus variable fee based on the performance of
Ibis Patong and Ibis Pattaya under ERWPF in 2Q17, which ERW
currently pays the minimum guaranteed rental of Bt111.5m per year and
this will end in 1Q17. The historical data suggest this would be less than
the minimum guaranteed rental.
Expect record profit in 1Q17 peak tourism season
We revised up FY17-19F earnings by 3-9% after upgrading assumptions
and derived a new TP of Bt6.0/sh. ERW is cheap currently at 24x FY17F
P/E compared to regional peers’ average of 28x. We expect ERW to
post record earnings in 1Q17 as YTD RevPar growth is 9% yoy, YTD 1Mth 3Mth 12Mth
exceeding management’s target at 7% for 2017. Absolute (%) (1.8) (2.6) (3.9) 10.5
Relative to index (%) (4.0) (4.6) (8.9) (11.9)
Financial Summary (Btm)
Year to Dec 2015 2016 2017F 2018F 2019F Krungsri Securities vs Market
Sales (Btm) 5,255 5,571 6,044 6,613 7,585 Positive Neutral Negative
Growth (%) 24 6 8 9 15 Market
EBITDA (Btm) 1,521 1,691 1,840 2,011 2,258 Recommend 14 2 0
Krungsri Market % +/-
Growth (%) 57 11 9 9 12
Target Price (Bt) 6.0 5.8 4.3
Recurring profit (Btm) 195 346 464 534 656
’17 Net Profit (Btm) 464 428 8.3
Growth (%) (215) 77 34 15 23 ’18 Net Profit (Btm) 534 499 6.9
Net profit (Btm) 195 367 464 534 656
FDEPS (Bt) (Core) 0.08 0.14 0.18 0.21 0.26 Krungsri's earnings revision
Growth (%) (215.3) 74.7 34.1 15.2 22.7
2017F 2018F
PE (x) 56.6 32.4 24.2 21.0 17.1
Earnings revision (%) 3.3 8.5
DPS (Bt) 0.04 0.06 0.06 0.06 0.08
Source: Bloomberg, Krungsri Securities
Yield (%) 0.9 1.4 1.3 1.5 1.8
BVPS (Bt) 1.87 1.97 2.09 2.25 2.45
P/BV (x) 2.4 2.2 2.1 2.0 1.8

Disclaimer: This publication constitutes information disclosed to the public and believed to be reliable but its accuracy and completeness are not guaranteed. All opinions,
suggestions, or projections are for informational purposes only and shall not be construed as an inducement for the sale or purchase of securities. Amendments to this
publication may be made without prior notice. Investors are urged to exercise caution in making a decision to invest in any securities.
1

536 1.236 1. Depreciation) (789) (813) (759) (794) (796) 0% 1% Gross Profit 597 723 477 581 628 8% 5% SG&A (348) (379) (357) (368) (377) 3% 9% Operating Profit 249 344 120 213 251 18% 1% ERWPF Rental Payment (28) (28) (28) (28) (28) 0% 0% Other income 20 9 14 7 10 37% -51% Interest (95) (93) (89) (89) (91) 1% -5% Pretax profit 146 232 17 103 142 39% -3% Income Tax (33) (44) (16) (30) (32) 7% -4% Associates 2 8 5 (4) 5 -232% 144% Minority interest (12) (7) (6) (13) (15) 13% 27% Profit after tax (pre-ex) 103 189 1 56 101 80% -2% Extraordinaries.4% 0.6 2.Quarterly (Btm) 4Q15 1Q16 2Q16 3Q16 4Q16 Chg Chg QoQ YoY Sales 1.498 2.01 0.00 0. GW & FX 0 3 16 0 2 Reported net profit 103 191 17 56 103 85% 0% Shares out (end Q.498 2. 2017 Financial statement .08 0.498 0% 0% Pre-ex EPS 0.04 0.498 2. m) 2.498 2.375 1.386 1.498 0% 0% Adjusted shares (m) 2.9% EBITDA margin (%) 30.5 6.2% 30.4% 30.6% 600 656 9.6 3.04 80% -2% EPS 0.498 2.08 0.5% 7.2% 30.02 0.8% 0.0 6.0% Core earnings (Btbn) 449 464 3.04 0.0% 29.2% Source: Krungsri Securities Krungsri Securities Research 2 .498 2.498 2.3% 492 534 8.498 2.424 4% 3% COGS (incl.Company Update | ERW February 24.8% 29.04 85% 0% Depreciation (179) (180) (181) (185) (185) 0% 3% EBITDA 449 533 315 405 446 10% -1% Key ratios Gross margin (%) 43% 47% 39% 42% 44% 2% 1% SG&A/Revenue (%) 25% 25% 29% 27% 26% 0% 1% EBITDA margin (%) 32% 34% 25% 29% 31% 2% -1% Net profit margin (%) 7% 12% 1% 4% 7% 3% 0% Source: Krungsri Securities ERW: Revised assumptions FY17F FY18F FY19F % chg % chg % chg old new old new old new Revenue (Btbn) 6.0 0.2% 6.4% 0.02 0.3 7.

412 2.282 1.441 1.467 10.886 3.300 Source: Krungsri Securities Krungsri Securities Research 3 .340 2.563 Occupancy rate (%) Luxury Resort 81% 81% 82% 82% Midscale 84% 85% 84% 83% Economy 83% 86% 85% 84% Hop Inn Thai 70% 71% 72% 73% Hop Inn Inter 0% 65% 60% 60% RevPar growth Luxury Resort 8% 3% 4% 4% Midscale 7% 5% 3% 3% Economy 0% 9% 4% 4% Hop Inn Thai 30% 10% 6% 6% Hop Inn Inter 5% EBITDA margin Luxury 29% 29% 29% 29% Midscale 39% 39% 39% 38% Economy 35% 35% 35% 34% Hop Inn Thai 48% 48% 48% 48% Hop Inn Inter 28% 28% 28% Capex 855 2.Company Update | ERW February 24.691 Economy 2.662 Hop Inn Thai 1.200 2.385 7.153 8.300 2. of Hotel 41 50 62 78 No.432 Hop Inn Inter 168 312 762 1.812 Total 6.282 1.716 2. 2017 ERW: Key Assumptions 2016A 2017F 2018F 2019F No.253 2.253 2. of room Luxury Resort 966 966 966 966 Midscale 1.

3) 4.4 0.2 MAND SP MANDARIN ORIENTAL INTL LTD 1.2) 5.3 N/A 16.8) CENTEL TB CENTRAL PLAZA HOTEL PCL 1.4 12.9 41 HK GREAT EAGLE HOLDINGS LTD 3.2 13.6 23.2 0.9 NA NA (27.5 (22.1 13.1) 14.3) (9.5 30.6) 29.6 20.6 3.0 31.201 13.1 (5.1 1.225 30.0 3.0 2704 TT AMBASSADOR HOTEL/THE 285 20.5 13.7 28.4 9861 JP YOSHINOYA HOLDINGS CO LTD 956 51.0 13.4 2.7 3.9 1.1 7.5) (4.0 3.2 5.4 (1.5 2.8 1.5 2.1 3.1 34.6 4.2 -14.4 1.9 0.0 23.9 4.9 2.353 36.5 18.9 (0.4 341 HK CAFE DE CORAL HOLDINGS LTD 1.2 Food M TB MK RESTAURANTS GROUP PCL 1.5 188.651 32.6 5.627 24.4 17.8 0.5 (0.7) 2.5 0.5) (13.9 1.7 NA 3.2 2.9 24.1 1.3) 2707 TT FORMOSA INTERNATIONAL HOTELS 719 18.8 23.3) (6.4 7.7 Average (Simple) 24.2 (1.7 20.6 9.2) (1.6) (3.1 4.4 22.6 6.0 Average (Simple) 29.8 7.6 1.3 4.9 18.6 4.3 1.4 7.5) (3.4 (4.277 23.5 10.3 NA NA 0.7 3.791 21.3 21.5 4.4 10.4 N/A (5.6 OUE SP OUE LTD 1.4) MINT TB MINOR INTERNATIONAL PCL 4.5 15.0 16.7 4.8 42.0 20.6 3.2 1.7 (1.4 2.9 6.4 4.3 22.6 4.7 34.7 2.8) 45 HK HONGKONG & SHANGHAI HOTELS 1.7 3.6 3.2 2.4 2.9) (10.0 3.537 26.5 0.6 Source: Bloomberg. Krungsri Securities Krungsri Securities Research 4 .3) (19.9 1.8 2.9) (6.3 (2.390 26. 2017 P/E Band P/BV Band Source: Bloomberg.2 JFC PM JOLLIBEE FOODS CORP 4.1 74.4 5.7 4.5 12.8 2.4 5.5 1.8 5.5 20.9 27.9 10.4 0.0 18.4 (22.6 1.2 3. Krungsri Securities Peer table Market PE P/BV EPS Div Yld ROE Share Price Cap (x) (x) Growth% (%) (%) Performance BB Ticker Name US$ 16F 17F 16F 17F 16F 17F 16F 16F 1M 3M 6M YTD Hotel ERW TB ERAWAN GROUP PCL/THE 316 32.0 3.1 31.8 60.8) 4.2 9.9 4.8) (6.5 0.7 11.978 26.5 (1.5) (3.1 69 HK SHANGRI-LA ASIA LTD 4.7 5.0 13.5 19.5) 11.9 11.6 27.2 3.4 4.6 5.0 25.Company Update | ERW February 24.9 4.5 16.8) 3.6 Average (Simple) 35.3 25.9) (3.1 0.9 2. Krungsri Securities Source: Bloomberg.2 11.2 2.5 25.1) 1.2 14.5 (2.0 12.6) (16.4 24.1 1.1) 1.

2017 INCOME STATEMENT (Btm) 2015 2016 2017F 2018F 2019F Turnover 5.432) (2. m) 2.000) NOPLAT (net op profit less adjusted tax) 589 733 827 941 1.389 Other operating income 40 33 35 37 39 EBIT 803 962 1.040) Operating profit 763 928 1.011 2.768) (7.571) Increase/(decrease) in cash & equivalents 335 (216) (663) (38) 162 (Increase)/decrease in debt (163) 179 (400) (1.389 Other operating income 40 33 35 37 39 EBIT 803 962 1.08 0.102 Normalised OpFCF (est.498 Shares in issue (weighted avg.632) (8.286) Operating free cashflow (OpFCF) 489 660 (538) (479) (219) Net interest income adjusted for tax impact (274) (262) (267) (292) (323) Net free cashflow (NetFCF) 215 398 (805) (771) (542) Non-operating income (net of tax) 0 (1) 0 0 0 Equity income from associates 19 15 15 16 16 Investments (1) 7 0 0 0 Net change in other assets/liabilities 101 (146) 0 0 0 Other items (122) (91) (82) (100) (106) Residual cashflow (RCF) 212 181 (872) (856) (632) Dividends (99) (100) (150) (139) (160) Equity capital raised 61 0 0 0 0 Other items (1) (118) (41) (43) (46) Cashflow from financing (40) (218) (191) (183) (206) Net change in cash 172 (37) (1.Company Update | ERW February 24.137 2.498 EPS (before extraordinary items.224 1.585 Cost of sales (COGS) (2.04 0. maintenance CAPEX) 56 247 1.428 Interest expense (387) (362) (367) (398) (442) Interest income 5 6 5 1 1 Other income 0 0 0 0 0 Goodwill amortization (112) (112) (82) (100) (106) Pre-tax profit 310 494 638 727 880 Income tax on company & subsidiaries (99) (122) (147) (164) (194) Profit after tax 211 372 491 563 687 Minority interests (35) (41) (43) (45) (47) Share of associate net income 19 15 15 16 16 Preferred dividends 0 0 0 0 0 Recurring attributable net profit 195 346 464 534 656 Extraordinary items 0 21 0 0 0 Reported net profit 195 367 464 534 656 Shares in issue (Y/E.806 2.648 1.14 0.038) (838) Net cash/(debt) at YS (7.06 0.374) (1.595) (7.632) (8.571 6.498 2.695) (9.067 FCFE (free cashflow to equity) 375 2 (472) 144 368 Krungsri Securities Research 5 .482) (1.410 2.048 1.21 0.224 1.498 2.326) Depreciation & amortization (717) (730) (757) (787) (830) Gross profit 2.063) (1.607) (1.286) (2.695) (9.498 2.048 1.429 S&A expense (1.187 1.498 2.06 0. m) 2.498 2.498 2.083 1.19 0.26 DPS (Bt) 0.000) (1.498 2.840 2.632) (2.401) (2.733) Ending net cash /(debt) (7.521 1.595) (7.08 DPS/EPS (%) 51 41 30 30 30 CASH FLOW (Btm) 2015 2016 2017F 2018F 2019F Operating profit 763 928 1.186) (2.655 2.044 6.691 1.733) (10.187 1.258 Notional cash taxes on ungeared operations (214) (228) (256) (283) (326) Net change in working capital (79) (12) 64 78 135 CAPEX (738) (791) (2.428 Depreciation & amortization 717 730 757 787 830 EBITDA 1.06 0.613 7.946 3.255 5. Bt) 0.759) (2.880) (3.498 2.083 1.

632 11.5 11.7 6.498 2.479 2.3 30.9 18.1) 56.748 3.7) 23.4 30.9 6.Company Update | ERW February 24.0 3.3 17.820 14.8 6.3 18.3 17.671 4.911 15.7 17.4 ROCE inc capitalised goodwill 1.4 EBITDA (28.388 5.2) 31.09 2.5 Operating performance EBITDA margin 22.4 0.3 2.815 9.627 Preferred equity 0 0 0 0 0 Minorities 177 212 155 156 158 Total equity & minorities 4.2 13.457 6.721 2.4 EBIT margin 7.918 5.4 0.269 7.2 EPS pre extraordinary items (228.6 13.9 6.09 2.663 Investments & associates 162 163 156 156 156 Other assets 1.5 0.87 1.0 22.7 34.7 14.4 0.278 639 630 Property and equipment 11.8 S&A/turnover 28.257 1.2 6.047 1.1 15.87 1.603 11.3 EBIT (56.0 8.0 34.8 9.9 24.9) (275.8 5.924 2.6 Operating profit margin 6.606 3.399 8.694 3.882 5.3 0.869 6.1 15.011 795 132 94 A/C receivable 212 202 202 203 203 Inventory 55 62 53 58 63 Others 103 134 227 246 270 Total Current Assets 1.618 2.5) (214.938 9.97 2.1 9.0 50.6) 0.4 ROA (1.434 Share capital 2.2) 87.839 10.343 1.6 54.1 11.5 4.4 Krungsri Securities Research 6 .7 12.97 2.702 4.7) (215.3 7.6 23.5 9.5 16.25 RATIOS (%) 2015 2016 2017F 2018F 2019F Growth Turnover (9.988 5.327 11.3 43.769 1.073 5.4) 77.3 56.4 56.2 ROE (3. 2017 BALANCE SHEET (Btm) 2015 2016 2017F 2018F 2019F Cash & equivalents 676 1.8 28.3) 74.4 0.83 1.150 14.616 1.715 17.3) 167.593 3.525 4.1 Turnover/avg total assets (x) 0.5 Gross profit margin 34.0 Net profit margin (2.558 2.2) 1.2 Accounting ratios Cash profit margin 50.5) 4.4 26.0 (7.409 1. Bt) 1.7 8.6) 3.558 2.218 Short-term debt 1.6 26.7 26.232 5.2 13.83 1.5 4.319 Total ordinary equity 4.707 13.1 Net profit (111.2 Asset turnover (Turnover/avg Op assets) 0.2 8.8 40.2 EPS (diluted) (228.785 Accumulated depreciation 5.558 A/C payable 254 261 252 273 299 Other current liabilities 773 713 795 863 944 Total Current Liabilities 2.269 Other liabilities 344 357 363 363 363 Total Liabilities 9.5 56.498 2.769 1.4 0.9 19.1 15.801 Long-term debt 6.3 3. Bt) 1.5 NOPLAT margin (NOPLAT/Turnover) 4.5 ROCE (NOPLAT/avg Op assets) 1.705 1.7 43.2 DPS (73.6 26.6 Effective tax rate (11.498 2.517 14.2 9.4 15.498 Share premium 787 836 836 836 836 Revaluation surplus 3 (7) (27) (27) (27) Translation adjustment 0 0 0 0 0 Retained earnings 1.1 26.4 14.722 5.6 7.047 6.25 Adjusted book value ps (Y/E.610 1.4 0.187 BV per ordinary share (Y/E.2) 15.8 30.8 5.9 44.642 7.2 6.769 Goodwill 0 0 0 0 0 Total Assets 14.

3 19.4 Debt service (OpFCF/net interest paid) 1.8 EV/OpFCF (x) 37.4 2. days turnover 14.498 2.4 0.08 0.242 11.6 1.548 13.242 11.2 0. days COGS 39.4 1.5 1.4) (1.1 3.311 12.0 8.9 37.5 28.229 Net noncore assets 1.2 2.5) Short-Term Ratios (x) Current assets/current liabilities 0.4 9.3 EV/NOPLAT (x) 31.8 (1.816 Turnover 5.15 Share price (Bt) – 4.1) (43.498 2.498 Share price (Bt) 4 5 5 5 5 Ordinary equity MV 10.0 ENTERPRISE VALUATIONS (Btm) 2015 2016 2017F 2018F 2019F Ordinary shares (m) 2.6 76.2 10.97 2.25 2.432 13.4 8.8 19.9 Krungsri Securities Research 7 .0 A/C payable.4 0. days COGS 9.521 1.45 Free cashflow to equity (FCFE) per share 0.7 3.3 2.5 1.1 15.428 NOPLAT 589 733 827 941 1.2 9.8 Inventory.585 EBITDA 1.3 12.5 1.5 1.7 16.4 1.07 15.8 20.336 18.1 22.15 0.21 0.2 11.362 16.0 8.8 P/FCFE (x) 29.0 8.5 1.029 Core EV Multiples EV/Turnover (x) 3.4) 76.7 1.4 24.4 1.4 0.19 22.7 24.3 0.45 Adjusted BVPS 1.255 5.7 Interest cover (x) Interest cover (EBIT & int.5 1.9 37.2 A/C receivable.7) EV/OpFCFnormalised (x) 326.21 0.827 9.400 11.510 19.8 P/ABV (x) 2.19) 0. x) 1.6 1.06 0.6 32.3 EV/avg capital employed (x) 1.26 FDEPS 0.4 3.8 Yield (%) 0.09 2.1 2.498 2.904 11.5 6.174 952 289 250 413 Core Enterprise Value (EV) 18.242 MI & deferred taxes 212 155 156 158 159 Equity MV (adjusted ord) 10.427 8.04 0.225 21.1 11.2 2.1 2.06 0.97 2.227 22.0 1.401 Preferred equity 0 0 0 0 0 Debt 8.4 2.9 37.06 0.9 EV/EBITDA (x) 12.14 0.2 0.827 Enterprise Value 19.1 2.4 0.25 2.840 2.09 2.2 21.27) 74.398 11.067 Op (core) capital employed (CE) 12.224 1.827 10.571 6.3 1.3 1.076.1 11.977 21.242 11.8 10.258 EBIT 803 962 1.011 2.6 EV/capital employed (YE.87 1.incl/int.692 11.18 0.2 3.927 15.5 1.8) (99.7 EV/EBIT (x) 22.9 2.73 DPS 0. 2017 EQUITY VALUATIONS (Bt) 2015 2016 2017F 2018F 2019F EPS 0. total assets/avg.937 20.2 2.8 P/BV (x) 2.0 3.7 37.0 13.7 1.1 25.2 NOPLAT/interest paid 1.4 0.0 1.607 8.19 0.806 2.26 FDEPS growth (%) (215.4 (23.08 0.0 3.4 RISK MEASURES 2015 2016 2017F 2018F 2019F Equity multiplier (avg.6 (37.0 17.8 PE (fully diluted.9 1.00 (0.2 Current assets less inventory/current liabilities 0.08 BVPS 1.613 7.102 OpFCF 489 660 (538) (479) (219) OpFCF (normalized) 56 247 1.1 Net debt/equity & MI 1.6 10.1 0.872 19.6 18.648 1.696 Avg.3) 0.2 0.4 1.06 0.315 12.14 0.691 1. equity) 3.67 34.1 PE/FDEPS growth (x) (0.5 1.644 16.824 20.0 3.9 23.2) (0.5 3.083 1.Company Update | ERW February 24.044 6.4 17.42 PE (x) 56. core capital employed 12.396 11.87 1.3 3.3 12. expense) 2.2 2.5 30.1 3.5 31.498 2. x) 56.237 14.

Krungsri Securities Public Company Limited does not confirm.CG Rating 2015 Companies with CG Rating ADVANC BAFS BCP BIGC BTS CK CPN DRT DTAC DTC EASTW EGCO GRAMMY HANA HMPRO INTUCH IRPC IVL KBANK KCE KKP KTB LHBANK LPN MCOT MINT MONO NKI PHOL PPS PS PSL PTT PTTEP PTTGC QTC RATCH ROBINS SAMART SAMTEL SAT SC SCB SCC SE-ED SIM SNC SPALI THCOM TISCO TKT TMB TOP VGI WACOAL AAV ACAP AGE AHC AKP AMATA ANAN AOT APCS ARIP ASIMAR ASK ASP BANPU BAY BBL BDMS BKI BLA BOL BROOK BWG CENTEL CFRESH CHO CIMBT CM CNT COL CPF CPI CSL DCC DELTA DEMCO ECF EE ERW GBX GC GFPT GLOBAL GUNKUL HOTPOT HYDRO ICC ICHI INET IRC KSL KTC LANNA LH LOXLEY LRH MACO MBK MC MEGA MFEC NBC NCH NINE NSI NTV OCC OGC OISHI OTO PAP PDI PE PG PJW PM PPP PR PRANDA PREB PT PTG Q-CON QH RS S&J SABINA SAMCO SCG SEAFCO SFP SIAM SINGER SIS SITHAI SMK SMPC SMT SNP SPI SSF SSI SSSC SST STA STEC SVI SWC SYMC SYNTEC TASCO TBSP TCAP TF TGCI THAI THANA THANI THIP THRE THREL TICON TIP TIPCO TK TKS TMI TMILL TMT TNDT TNITY TNL TOG TPC TPCORP TRC TRU TRUE TSC TSTE TSTH TTA TTCL TTW TU TVD TVO UAC UT UV VNT WAVE WINNER YUASA ZMICO 2S AEC AEONTS AF AH AIRA AIT AJ AKR AMANAH AMARIN AP APCO AQUA AS ASIA AUCT AYUD BA BEAUTY BEC BFIT BH BIG BJC BJCHI BKD BTNC CBG CGD CHG CHOW CI CITY CKP CNS CPALL CPL CSC CSP CSS CTW DNA EARTH EASON ECL EFORL ESSO FE FIRE FOCUS FORTH FPI FSMART FSS FVC GCAP GENCO GL GLAND GLOW GOLD GYT HTC HTECH IEC IFEC IFS IHL IRCP ITD JSP JTS JUBILE KASET KBS KCAR KGI KKC KTIS KWC KYE L&E LALIN LHK LIT LST M MAJOR MAKRO MATCH MATI MBKET M-CHAI MFC MILL MJD MK MODERN MOONG MPG MSC MTI MTLS NC NOK NUSA NWR NYT OCEAN PACE PATO PB PCA PCSGH PDG PF PICO PL PLANB PLAT PPM PRG PRIN PSTC PTL PYLON QLT RCI RCL RICHY RML RPC S SALEE SAPPE SAWAD SCCC SCN SCP SEAOIL SIRI SKR SMG SOLAR SORKON SPA SPC SPCG SPPT SPVI SRICHA SSC STANLY STPI SUC SUSCO SUTHA SYNEX TAE TAKUNI TCC TCCC TCJ TEAM TFD TFI TIC TIW TLUXE TMC TMD TOPP TPCH TPIPL TRT TSE TSR TT UMI UP UPF UPOIC UREKA UWC VIBHA VIH VPO WHA WIN XO Disclaimer The disclosure of the survey result of the Thai Institute of Directors Association ("IOD") regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. therefore. Nevertheless. verify. . or certify the accuracy and completeness of such survey result. As a result. The result. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. is from the perspective of a third party. It is not an assessment of operation and is not based on inside information. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. the survey result may be changed after that date or when there is any change to the relevant information.

Anti-corruption Progress Indicator 2015 Level 5: Extended BCP CPN GYT PE PM PPP PT PTT PTTGC SAT SCC THANI TOP Level 4: Certified ADVANC AMANAH ASP AYUD BAFS BANPU BAY BBL BKI BLA BTS CFRESH CIMBT CNS CSL DCC DRT DTC EASTW ECL EGCO ERW FSS GCAP HANA HTC IFEC INTUCH IRPC IVL KBANK KCE KGI KKP KTB LANNA LHBANK MBKET MFC MINT MTI NKI PPS PSL PTG PTTEP SABINA SCB SINGER SIS SNC SNP SSF SSI SSSC SVI TCAP THCOM THRE THREL TISCO TMB TMD TNITY TOG TSTH Level 3B: Established by Commitment and Policy AAV AHC AIT AKR ARROW ASK BA BDMS BEC BJCHI CGH CHG CHOW CIG CITY CK CKP COLOR CWT EARTH EASON EPG F&D FANCY FIRE FMT FORTH GENCO GL GOLD GPSC GRAMMY HYDRO IRCP IT JCT KCM KWC LH LIT LOXLEY MACO MANRIN MATI MODERN MSC NOBLE NOK NPK NUSA OISHI OTO PAF PAP PATO PF PJW PLANB PLE POLAR PRG PTL Q-CON QTC RCI S11 SALEE SAM SAMART SAMTEL SAPPE SC SCP SFP SIM SLP SMT SPA SPORT SSC SST STEC STPI SUC SUTHA T TAE TBSP TCC TFD TGCI TGPRO THANA THIP TIW TK TMW TNDT TOPP TPC TPCH TPIPL TSR TT TYCN UAC UBIS UEC UMI UP UPF UT UV VPO WAVE WINNER YUASA Level 3A: Established by declaration of intent ABC ACAP AGE AH ANAN AP APCS APURE AS ASIA ASIAN ASIMAR BIGC BROOK BWG CEN CENTEL CHARAN CHO CHOTI CM CNT COL CPF CPI CPL DELTA DEMCO DIMET DNA DTAC EA ECF EE EVER FPI GBX GC GFPT GLOW HMPRO HOTPOT ICC ICHI INOX INSURE IRC JAS JTS JUBILE KC KTC KYE LHK LPN LRH MAKRO MC MCOT MFEC MJD MONO MOONG NBC NDR NINE NMG NSI NTV OGC PACE PCSGH PDI PG PHOL PLAT PR PRANDA PREB PS QLT RATCH RML ROBINS ROJNA RWI SAMCO SCCC SCG SEAOIL SE-ED SENA SITHAI SMK SMPC SPALI SPC SPCG SPI SRICHA STANLY SUPER SYMC SYNEX SYNTEC TASCO TCMC TFI THAI TICON TKT TLUXE TMILL TMT TNL TPCORP TSTE TTCL TU TVI UOBKH UREKA VGI VNT WACOAL WHA ZMICO Level 2: Declared 2S ABICO AF AIRA AKP ALUCON AMARIN AMATA AOT APCO BEAUTY BFIT BH BKD BLAND BROCK BRR BSBM BTNC CCP CI CSC CSR CSS EFORL EPCO ESTAR FE FER FNS FVC GEL GLOBAL GUNKUL IEC IFS ILINK INET J JMT JUTHA K KASET KBS KCAR KKC KSL KTECH L&E LALIN LTX M MALEE MBAX MBK MEGA MILL MK MPG MTLS NCH NCL NNCL NPP OCC OCEAN PB PCA PDG PRINC PSTC PYLON QH ROCK ROH RP RPC S&J SGP SIAM SKR SMG SMIT SORKON SPACK SPPT SR SUSCO TAKUNI TEAM TF TIC TIP TIPCO TMC TMI TPA TPP TRT TRU TRUE TSC TSI TTW TVD TVO TVT U UKEM UNIQ UWC VIBHA VNG WIIK WIN XO Level 1: Committed AEONTS AFC AJ AMC AQUA ARIP AUCT BAT-3K BIG BJC BOL CBG CCET CCN CGD CMR CPH CSP CTW DCON DRACO DSGT DTCI E EMC ESSO FOCUS FSMART GIFT GLAND GRAND GREEN HFT HTECH IHL ITD JSP KDH KTIS KTP LEE LST MAJOR MATCH MAX M-CHAI MDX MIDA ML MPIC NC NEP NWR OHTL PICO PK PL PPM PRAKIT PRECHA PRIN RAM RICH RS SANKO SAUCE SAWAD SAWANG SCN SEAFCO SF SHANG SIRI SMART SMM SOLAR SPG SPVI STA STAR SVH SVOA SWC TAPAC TC TCCC TCJ TCOAT TH TKS TNH TNPC TPAC TPOLY TRC TRUBB TSE TTA TTI TTL TTTM TWP TWZ UMS UPA UPOIC UTP UVAN VARO VI VIH VTE WG Disclaimer The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand. Annual Report (Form 56-2). and disclosure of any current investigations. It is not an assessment of operation and is not based on any inside information." Reference Level 5: Extended – Extension of the anti-corruption policy to business partners in the supply chain. Nevertheless. as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1). or certify the accuracy and completeness of the assessment result.) Level 3: Established – Carrying out preventive measures. including consistent monitoring and review processes Level 3A: Established by declaration of intent. Since this assessment is only the assessment result as of the date appearing in the assessment result. is made in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Level 3B: Established by Commitment and Policy Level 2: Declared – Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 1: Committed – Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws . communication and training for all employees. or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. it may be changed after that date or when there is any change to the relevant information. risk assessment. Krungsri Securities Public Company Limited does not confirm. prosecutions or closed cases Level 4: Certified – Audit engagement by audit committee or auditors approved by the office of SEC. Thaipat Institute made this assessment based on the information received from the listed company. verify. and receiving certification or assurance by independent external assurance providers (CAC etc. which is assessed by Thaipat Institute.

FRM Construction Property. 27 249/171-172 Moo 5 Tambol Ta Rahad. Klongtoey. 5010 karun.com Teerapol Udomvej Healthcare.krungsrisecurities.com Nalinee Praman.thongthip@Krungsrisecurities. Chiang Mai 50200 Tel: 0-3879-0430 Fax: 0-3879-0425 Tel: 0-5321-9234-6 Fax: 0-5321-9247 Hat Yai Branch Chiang Rai 90-92-94 Nipat U Tit Nueng Road.Stocks with an expected capital gain below 10% in the next 12 months for small-caps. Krungsri Securities Public Company Limited Headquarters 898 Ploenchit Tower. 5000 naphat. Tambol Phra Pathom Jaedee.com . Ploenchit Road. Fl. Insurance ext. Bangkhuntien.com Karun Intrachai Media Renewable Energy ext. Phitsanulok 65000 Tel: 0-5530-3360 Fax: 0-5530-2580 Central line: Analyst Team Sector Coverage 662-659-7000 E-mail Naphat Chantaraserekul. Bangna-Trad Road. Sukhumvit 24 Road 67/1 Ratchadamnoen Road.intrachai@krungsrisecurities.Small cap.pruitipat@krungsrisecurities. Suphanburi. 5016 worrapong. Lumpini Pathumwan. Assistant Analyst Mid . MAI Fax 662-658-5643 Definition of Ratings OUTPERFORM . ext. 5005 artit. Tambol Nai Muang. Chiang Rai 57000 Tel: 0-7422-1229 Fax: 0-7422-1411 Tel: 0-5371-6489 Fax: 0-5371-6490 Phitsanulok 275/1 Phichaisongkram Road. 114 Sri Chan Road. Tourism ext.com Kittisorn Pruitipat. Tel: 0-2895-9575 Fax: 0-2895-9557 Nakhon Ratchasima 30000 Tel: 0-4425-1211-4 Fax: 0-4425-1215 Vibhavadi-rangsit Bank of Ayudhya Public Company Limited Khon Kaen 123 Suntowers (B) Building.udomvej@krungsrisecurities.tuntiwutthipong@krungsrisecurities. Nakhon Pathom 73000 Tel: 0-2695-4500 Fax: 0-2695-4599 Tel: 0-3427-5500-7 Fax: 0-3421-8989 Central Bangna Suphanburi 589/151 Central City Tower 1 Office. 5004 jesada.jansawang@krungsrisecurities. 168 Chomphon Road. 3rd Floor. Bangna. Tambol Nai Muang. CFA Banking. Strategy ext. Petrochemical. MAI ext.com Kitti Pitakteerabandit. Chonburi 20000 Amphur Muang. -5% to +5% for big-caps UNDERPERFORM . Head of Research Energy. Amphur Hat Yai. below 5% for big-caps www. Bangkok 10260 Amphur Muang.Tambol Hat Yai.Stocks with an expected capital gain between -10% and +10% in the next 12 months for small-caps. Songkhla 90110 Amphur Muang. Insurance Strategy Transportation. Tambol Bang Plasoi. ICT. Vibhavadirangsit Road. Fl. Bangkok 10150 Amphur Muang Nakhon Ratchasima. Bangkok 10110 Amphur Muang. 5012 teerapol. Tambol Nai Muang. Smaedum. 72000 Tel: 0-2763-2000 Fax: 0-2399-1448 Tel: 0-3550-1234 Fax: 0-3552-2449 Rama II Nakhon Ratchasima 111/917-919 Rama II Road. above 5% for big-caps NEUTRAL . 5019 kittisorn. 10.Materials Contractor ext. Assistant Analyst Artit Jansawang Mid . 70 Chang Phuak Road.com Jesada Techahusdin. Khon Kaen 40000 Tel: 0-2273-8388 Fax: 0-2273-8399 Tel: 0-4322-6120 Fax: 0-4322-6180 Chonburi Chiang Mai 64/17 Sukhumvit Road.Small cap.com Sunthorn Thongthip Insurance Food. Tambol Sri Phum Amphur Muang.Stocks with an expected capital gain above 10% in the next 12 months for small-caps. Commerce ext. Tambol Wiang. Consumer Finance. Bangkok 10330 Tel: 0-2659-7000 Fax: 0-2658-5699 Internet Trading: 0-2659-7777 Branches Emporium Nakhon Pathom 662 Emporium Tower.com Worrapong Tuntiwutthipong Electronic. 231-232 Thamalai Road. CFA.techahusdin@krungsrisecurities. Jatujak. Amphur Muang. Bangkok 10900 Amphur Muang. 5009 sunthorn. Jompol.chantaraserekul@krungsrisecurities. Klongton. Automotive.