Thai Capital Market Story

Thailand-China Capital Market Cooperation Seminar

October 2019

2

Million People66.4 (as of 2018)

Thailand Economic Outlook

Thailand Tourism Statistics 2018

No. of tourisms 38.3 Mil. People

- China 10.5 Mil. People

Total Revenue 2,007 Bil. THB

- China 580 Bil. THB

2.7%

1.0%

3.0%3.3%

4.0% 4.1%

3.0%

2013 2014 2015 2016 2017 2018 2019 (F)

Expected GDP

(2.7 – 3.2%)

Thailand GDP growth

(Unit: %YOY)

% to GDP(2017)

%YoY

2017 2018 2019 (F)

- Private consumption 48% 3.2 4.6 4.2

- Public consumption 16% 0.5 1.8 2.2

- Private investment22%

1.7 3.9 3.7

- Public investment -1.2 3.3 4.0

- Export value 67% 9.8 7.7 -1.2

- Import value 54% 13.2 13.7 -1.6

- Tourism revenue (%YoY) 18% 11.7 9.6 9.3

- No. of tourists (million people) 35.6 38.3 41

Source: Office of the National Economic and Social Development Board (NESDB)

Highlight Industries

Manufacturing: Automotive, Electronic, Jewelry, Food Processing

Agriculture : Rice, Rubber, Tapioca, Sugar

Services: Tourism, Healthcare, Logistics

Population:

(27.5% of total)

(28.9% of total)

Export 12.0% of total export

Import 20.1% of total import

3

Thailand & Bangkok ranks Top 10 of global travel destination in 2018

Thailand Economic Outlook

Source: World Tourism Organization

Top 10 Destination Countries & Cities in 2018By International tourism

Receipts (USD Billion)% Change2017-2018

Destination countries

USA 214.5 1.8

Spain 73.8 8.4

France 67.3 10.9

Italy 49.3 11.5

Japan 41.1 20.5

German 43.0 8.0

Thailand 63.0 10.7

UK 51.9 5.9

China 40.4 4.7

Australia 45.0 7.9

Cities2018 International

Overnight

Visitors

Growth

Forecast for

2019

Average

Length of

Stay

Average Spend Per

Day (USD)

Bangkok 22.78 million 3.34% 4.8 nights $184

Paris 19.10 million 2.24% 2.5 nights $296

London 19.09 million 3.47% 5.8 nights $148

Dubai 15.93 million 1.68% 3.5 nights $553

Singapore 14.67 million 4.0% 4.2 nights $272

Kuala Lumpur 13.79 million 9.87% 5.7 nights $142

New York 13.60 million 2.94% 7.9 nights $152

Istanbul 13.40 million 8.14% 5.8 nights $106

Tokyo 12.93 million 10.02% 5.4 nights $196

Antalya, Turkey 12.41 million 8.14% 14.0 nights $44

“Bangkok rank no. 1 of Mastercard’s Global Destination Cities

Index For The Fourth Consecutive Year”

Source: Mastercard’s Global Destination Cities Index 2019

4

Thailand ranked sixth among countries with best healthcare system

Thailand Economic Outlook

Source: CEOWORLD

Rank CountriesHealthcare Index

OverallInfrastructure Professionals Cost

Medicine

Availability

Government

Readiness

1 Taiwan 78.72 87.16 14.23 83.59 82.30 87.89

2 South Korea 77.70 79.05 13.06 78.39 78.99 65.09

3 Japan 74.11 90.75 30.01 82.59 92.06 96.30

4 Austria 71.32 86.18 20.25 78.99 88.23 91.80

5 Denmark 70.73 78.77 21.60 74.88 74.18 93.20

6 Thailand 67.99 92.58 17.37 96.22 67.51 89.91

7 Spain 65.38 77.86 13.24 71.82 55.10 81.38

8 France 64.66 86.28 34.25 75.81 83.82 96.80

9 Belgium 64.63 72.48 24.51 68.68 64.78 94.90

10 Australia 61.73 88.63 14.66 75.61 90.25 88.41

The Health Care Index is a statistical analysis of the overall quality of the health care system, including health care infrastructure; health care professionals (doctors, nursing staff, and other health workers) competencies; cost (USD p.a.per capita); quality medicine availability, and government readiness.

Top 10 Countries With The Best Health Care Systems, 2019

5

Outline

Thai Capital Market Landscape

Current Investment Themes

12

6

ASEAN Peers Comparison

Thai Capital Market Landscape1

Source: World Federation of Exchanges

640

349 353 383

289

59

657

559500

384

271

152

Singapore Thailand Indonesia Malaysia Philippines Vietnam

Market Capitalization (Billion USD) as of September 2019

2015

2019

7

Thailand has become the most liquid capital market since 2012 and

the largest fund raising venue in ASEAN during 2014 - present

Thai Capital Market Landscape1Average daily trading value of equity markets*

Unit: Million USD

1,719

1,041

776

470 667

387

500

146

0

500

1,000

1,500

2,000

2,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep-19

Thailand

Singapore

Indonesia

Malaysia

Philippines

Size of IPO issued in ASEAN exchanges

Unit: Million USD

Country 2014 2015 2016 2017 2018Sep

2019

2014 –Sep 2019

Thailand 4,024 4,350 1,503 3,428 2,626 720 16,652

Singapore 2,577 372 1,662 3,367 1,535 1,671 11,184

Malaysia 1,251 1,283 293 1,718 163 392 5,101

Indonesia 768 878 1,043 709 1,287 778 5,463

Philippines 316 116 1,017 454 174 8 2,085

Indonesia

Malaysia

Note: Singapore data as of September 2019Source: The Stock Exchange of Thailand, World Federation of Exchanges (WFE)

Source: Bloomberg

8

SET has a relatively larger number of liquid large-cap listed companies and increasing number of constituents in MSCI, the benchmark index

Thai Capital Market Landscape1Number of Thai listed companies in MSCI Standard index

2529 29

34 33 35 36

2013 2014 2015 2016 2017 2018 43678

2019 MSCI membersADVANC, AOT, BANPU, BBL, BEM, BH, BGH, BTS, BJC, LH,

CPALL, CPF, CPN, DTAC, EA, GULF, HMPRO, EGCO,

INTUCH, IVL, IRPC, KBANK, KTB, MINT, MTC, PTT, PTTGC,

PTTEP, RATCH, ROBINS, SCB, SCC, TMB, TOP, TRUE, TU

44

23

6 6

1

Thailand Singapore Indonesia Malaysia Philippines

Number of listed companies having market capitalization >= $1 billion and average

daily trading value* >= $ 10 million

As of September 2019

*Calculated by 6 months average daily trading valueSource: Bloomberg

Sep 2019

9

SET has diverse business sectors listed on the exchange withservices sector being the largest industry among 8 industries in SET & mai.

Thai Capital Market Landscape1Sectors listed on the Exchange

Breakdown by number of companies Breakdown by Market Capitalization

Agro & Food629% Consumer

Product507%

Financials70

10%

Industrials13118%

Property & Construction

12417%

Resources669%

Services16123%

Technology497%

Source: The Stock Exchange of Thailand as end of September 2019

Total

713*Companies

Breakdown by number of companies

Companies in SET 550

Companies in mai 163

Note: *Excluding Property Fund & REITs 61 securities

Unit: Number of companies and Percent

Breakdown by Market Capitalization

Agro & Food37

6%

Consumer Product

4 1%

Financials85

15%

Industrials26

5%

Property & Construction

80 14%Resources

127 23%

Services146

26%

Technology55

10%

Total

560Billion USD

Unit: Billion USD and Percent

10

22%

29%

49%

Local Institute + Prop trading

Foreign Investors

Local Investors

Holding value by investor type*

Unit: Percent, data as of May 2019

Remark: Holding value by investor type on book closing date

Source: The Stock Exchange of Thailand

Investor base in Thai stock market is well diversified

Thai Capital Market Landscape1

766 801

713 729

594

287 381

446 650

712

121 150 163 188 193

119 156 154 219 225

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 Sep-19

Prop. Trade

Institutional Investors

Foreign Investor

Retail Investors

(9%) (11%) (10%) (12%) (13%)

(9%)(10%) (11%) (11%) (11%)

(22%)(26%)

(30%)(36%)

(41%)

(69%)(54%)

(48%)(41%)

(35%)

Average daily trading value by investor type

Unit: Million USD (Percent), data as end of September 2019

11

Technology has made investment more accessible

Online trading & Digital channelfor investors

SET Application & SET Member

An internet based information database system

Source: The Stock Exchange of Thailand

Thai Capital Market Landscape1Number of retail trading accounts

Unit: Accounts

CAGR

12%

Average daily internet trading value by retail investors

Unit: Million USD

225

460 343

134

2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep-19

Online trading Investment consultant

626,441 700,225 797,326974,851

1,098,7311,244,907 1,353,225

1,510,0531,661,046

1,783,049

2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep-19

70%

30%23%

77%

12Source: The Stock Exchange of Thailand

MSCI stock addition & FTSE advanced emerging market country help

attract foreign investment

Thailand average daily trading value by investor type

252356 283 277

381 446650 712

787

1,282

1,116970

1,107 1,030

1,135 1,01224%22%

20%22%

25%

30%

36%

41%

2012 2013 2014 2015 2016 2017 2018 Sep-19

Proportion of

foreign trading to

total trading value

Local

trading

value

Foreign

Trading

value

(Unit: million USD)

176 242 200 200

271 303

464 500 76

114

83 87

110 144

186 212

2012 2013 2014 2015 2016 2017 2018 Sep-19

MSCI

Non-MSCI

Average daily foreign trading value in MSCI Thailand

Standard Index and non-MSCI stocks

(70%) (68%) (71%) (70%) (71%) (68%)

(Unit: million USD)

Note: Data as of May Semi Annual Index Review (SAIR) during 2011 – H1/2019

2225

29 29

34 3335 36

No. of stocks in MSCI Thailand Standard index

(73%)

Thai Capital Market Landscape1

(73%)

13

SET offers a wide range of attractive products to create valueand broaden investment opportunities for investors.

Thai Capital Market Landscape1

Common Stock

Preferred Stock

Warrants

Derivative Warrants

Exchange Traded Funds

Non-Voting Depositary Receipt

Depositary Receipt

Equities

SET50 Index Futures

SET50 Index Options

Single Stock Futures

50 Baht Gold Futures

10 Baht Gold Futures

Gold-D Futures

Interest Rate Futures

Oil Futures

Currency Futures

Sector Index Futures

Rubber Futures

Derivatives

Property Funds

REITs

Infrastructure Funds

Quasi-fixed income

14Source : The Stock Exchange of Thailand

PrimaryListing

2

SecondaryListing

3

Infrastructure Trust

4Real Estate

Investment Trust (REIT)

5

Foreign

Company

Listed company in

Home Exchange

(e.g. Cambodia, Laos)

Listed company on SET

Income generating

infrastructure assets

Infrastructure trust (IFT)

Income generating

real estate assets

Real estate

Investment trust

(REIT)

Ordinary Share Unit Trust

Listing of a company

incorporated abroad

on the SET as a

primary exchange

Allow foreign listed

companies to list on SET

as the Secondary Listing

Listing of Foreign

Infrastructure Assets

Listing of Foreign

Real Estate

Holding Company

1

Listing of the Thai

holding company with

core companies

operating overseas

Shareholders (Thai/foreign)

Holding Company(Thai incorporated)

Core Company(Foreign subsidiary)

> 50%

Various schemes to facilitate foreign listing are available to suit different capital requirements and business structures.

Thai Capital Market Landscape1

15Source : DJSI* New member in 2019 / Note: DJSI Emerging Market Index has been calculated since 2013.

Number of Thai listed companies in DJSI Index

2 3 4 4 5 5

8

11

3 4

10

1315 16

19 19

2012 2013 2014 2015 2016 2017 2018 2019

DJSI World Index DJSI Emerging Market Index

Thai Capital Market Landscape1No. Symbol

DJSI World

DJSI

Emerging Market 7 Industry Leaders

1 ADVANC*

2 AOT

3 BANPU Coal and Consumable Fuels

4 BTS

5 CPALL Food & Staples Retailing

6 CPF

7 CPN

8 HMPRO

9 IRPC

10 IVL

11 KBANK

12 MING

13 PTT

14 PTTEP Oil & Gas Upstream & Integrated

15 PTTGC Chemicals

16 SCB

17 SCC

18 TOP Oil and Gas Refining & Marketing

19 TRUE Telecommunication Services

20 TU Food products

Thai Listed Companies in 2019 DJSI Members

11 19

Thai listed companies continue to perform strongly on sustainability.

Ranking World’s Top Stock Exchanges on Sustainability Disclosure

Note : The evaluation takes into consideration

seven quantitative indicators of corporate ESG performance:

1)greenhouse gas emissions, 2) energy use, 3) water use,

4) waste, 5) occupational safety, 6) employee turnover, and

7) temporary staff.

20

Source: Measuring Sustainability Disclosure report 2018 by Corporate Knights

• SET won United Nation Sustainable Stock Exchange

(UN SSE) Market Transparency Award, the top ranked

emerging market exchange

16

• Well-being

• International exposure

• Infrastructure

• Sustainability

• High dividend

Outline

Thai Capital Market Landscape

Current Investment Themes

1

2

17

Positioning the Thai capital market as the “Market of Well-being” Current Investment Themes – Well Being2

Company GICs sectorMarket capitalization

(billion USD)

Ranked in global

sectorBusiness hi-light

Airport service 34.7 1st

(from 67firms)

Operates 6 international airports in

Thailand and serves 140 million

passengers a year

Health care facilities 12.5 3th

(from 244firms) 30% of customers from abroad

Real estate operating 10.09th

(from 644 firms)

Thailand largest retail developer with

30 shopping centers in Thailand and

1 developing project abroad

Hotel & resort 5.714th

(from 628firms)

Operates hotels in 26 countries and

restaurant presence in 20 countries

Note: Global Industrial classification standard (GICs)

Source: Bloomberg as end of September 2019, The Stock Exchange of Thailand

18

SET launches SET Well-Being Index to reflect the performance of highly competitive stocks in well-being related sectors which is the strength of Thailand

Current Investment Themes – Well Being2

Note: SETWB starts on April 1, 2019

Source : The Stock Exchange of Thailand

7 Sectors in SETWB index

• Tourism & Leisure

• Health Care Services

• Transportation &

Logistics

• Food & Beverage

• Commerce

• Agricultural

• Fashion

30 securities from 7sectors

with high competitiveness

95

100

105

110

April-19 May-19 June-19 July-19 August-19 September-19

SETWB index SET index

SETWB vs SET: total return index performance

(data as end of September 2019)

The SET Well-Being Index (SETWB)

19Source: The Stock Exchange of Thailand (data as of end 2018)

Number of listed companies investing abroad

Note: One company may invest in more than one country/region.

North Asia

91America

41

Europe

46

South Asia

37

Australia

17

Middle east 19

Africa

15

ASEAN 190

(CLMV 144)

68 65 59 57 57 5542

28

Myanmar Vietnam Singapore Laos Cambodia Indonesia Malaysia Philippines

Unit: Company

Thai listed companies have expanded abroad and

grabbed extra growth opportunities.

Current Investment Themes – International Exposure2

35%36%

37%

40% 40%41%

42%43%

45% 45%46% 46%

47%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

The ratio of revenue from abroad to total revenue of Thai listed companies

Note: Revenue from abroad refers to the revenue derived from business operating overseas and exports revenue.

Nevertheless, some firms usually classify revenue from overseas based on geographical locations of customers without

indicating whether the amount is derived from operation overseas or exports. All foreign revenue that fall under these criteria

will be classified as ‘revenue from abroad’.

(Data of 108 companies which continually reported revenue from trade and investment abroad during 2006 – 2018)

20

SET launches CLMV Exposure index which will enable investors to benefit from CLMV economies.

Current Investment Themes – International Exposure2

Source : The Stock Exchange of Thailand

90

100

110

120

SET CLMV Index SET index

SETCLMV vs SET: total return index performanceSET CLMV Exposure Index

Selection criteria

• Stocks selected from Thai-listed companies, generating ≥ 10%

of annual revenues from CLMV countries or ≥ THB 100 million

annually (~USD 3.1 million).

• The market cap of selected stocks must be ≥ THB 5 billion

(~USD 1.5 million) with at least 20% of free-float.

• Monthly traded status, indicated by the turnover ratio, ≥ 0.5%

of total listed shares.

35

27% of Market Cap on SET & mai

Thai listed firms selected into 2019

SET THSI Index

dividend yields2.8%

(data as end of September 2019)

21

Current Investment Themes - Infrastructure2 Infrastructure development funds offer high yield.

96

105

212

907

1,943

1,979

2,082

6,050

ABPIF

BRRGIF

SUPEREIF

EGATIF

TFFIF

JASIF

BTSGIF

DIF

Infrastructure market capitalization

(Unit: million USD)

Noted: *SUPEREIF listed in SET on August 21, 2019,

Source: The Stock Exchange of Thailand, data as end of September 2019

Dividend yields,

higher than market average (3%)(Excluded SUPERIF)

Infrastructure funds listed in SET8 6%

9.93

6.25

5.94

2.10

8.36

3.77

5.87

12 Months trailing dividend yield

(Unit: Percent)

* N/A

Price at IPO

(Unit: Baht)

10.0

10.8

10.0

10.0

10.0

10.0

10.3

10.5

17.4

11.0

11.0

13.0

13.3

12.6

9.2

4.9

Current price(Sep 30, 2019)

(Unit: Baht)

27 Dec 2013

19 Apr 2013

16 Feb 2015

31 Oct 2018

13 Jul 2015

21 Aug 2019

7 Aug 2017

27 Sep 2013

Year of IPO

22

Current Investment Themes - Sustainability2 To deepen sustainability practice in to smaller Thai listed companies

Source : The Stock Exchange of Thailand

90

100

110

120

SETTHSI index SET index

SETTHSI vs SET: total return index performance

53

56% of Market Cap on SET & mai

Thai listed firms selected into 2019

SET THSI Index

dividend yields3.3%

SETTHSI Index (Thailand Sustainability Investment)

Selection criteria

• The market cap of selected stocks must be

≥ THB 5 billion (~USD 1.5 million) with at least 20% of free-float.

• Monthly traded status, indicated by the turnover ratio,

• ≥ 0.5% of total listed shares.

Stock selected from the THSI list and not limited to

the number of the stocks from the list.• Being DJ sustainability list (DJSI)

• Survey based (3 dimensions of ESG ratings by SET)

(data as end of September 2019)

23

Thai listed companies offer high dividend yield.

Current Investment Themes – High Dividend2

Source : The Stock Exchange of Thailand

30

5.2% Dividend yields

Thai listed firms selected into 2019 SETHD Index

90

100

110

120

De

c-1

7

Jan

-18

Fe

b-1

8

Ma

r-1

8

Ap

r-18

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

Se

p-1

8

Oct-

18

No

v-1

8

De

c-1

8

Jan

-19

Fe

b-1

9

Ma

r-1

9

Ap

r-19

Ma

y-1

9

Jun

-19

Jul-

19

Au

g-1

9

Se

p-1

9

SETHD index SET index

SETHD vs SET: total return index performance

(data as end of September 2019)

The SET High Dividend 30 Index (SETHD)

6 6 6 6

5

1

< 4.00 4.01 - 5.00 5.01 - 6.00 6.01 - 7.00 7.01 - 8.00 > 8.00 (%)

Number of high dividend yield stock in SETHD classified by dividend yield

(data as of September 2019)

SETHD Index selection criteria• Stocks selected from SET100 index in the same period and

have paid dividends continuously in 3 accounting periods.

• Cash dividends (excluding special dividends) are paid

continuously for the last 3 years.

• Stocks that have passed the above criteria will be ranked in

descending order by the average daily dividend yield for the

past 3 months.