17 June 2016

Thriving CLMVT Economic Growth :

The Role of Capital Markets and SET

2

• CLMVT Economic Growth

Capital Market Ecosystem and SET

Thriving CLMVT Economic Growth: The Role of

Capital Markets and SET

1

2

3

X Nominal GDP in 2015 (billion USD)

2015 Nominal GDP (billion USD) among CLMVT

18

192

Vietnam

Laos

Cambodia

67 13 Myanmar

395

Thailand

4

Source: IMF

Economic development in CLMVT has outpaced many

other parts of the world over the past decades

Nominal GDP (current prices)

Unit: billion US$

World Advanced economies

CLMVT Emerging and

Developing Asia Emerging and

Developing Europe

4% 2% 9% 14% 4%

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CAGR 9%

CLMVT

Thailand

Vietnam

Myanmar

Cambodia Lao PDR

Thai listed companies have benefited from business

expansion outside Thailand

152

114

79

40 36 27

18 15 13

ASEA

N

CLMV

East

Asia

Amer

ica

Euro

pe

Sout

h As

ia

Aust

ralia

Midd

le Ea

st

Afric

a

5

Number of Thai listed companies investing abroad

In 2015, 192 of 639 companies invested aboard

% of revenues from oversea business to total revenues of Thai listed companies*

36% 37% 37% 39% 39% 42% 42% 43% 45% 46%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Remark: * Data of 110 companies which continually reported revenue from trade and investment abroad during 2006 - 2015 Source : The Stock Exchange of Thailand

6

• CLMVT Economic Growth

Capital Market Ecosystem and SET

Thriving CLMVT Economic Growth: The Role of

Capital Markets and SET

1

2

3,762

3,730

1,048

14,12

9

6,520

1,485

2,448

1,664

4,295

1,989

2,921

3,828

3,078

1,531

1,054

3,012

2,651

8,608

10,37

2

8,518

9,337

9.2%

5.9%

-1.4%

-10.5%

4.4% 4.8%

2.2%

5.3% 7.1% 6.3%

4.6% 5.1% 5.0%

2.5%

-2.3%

7.8%

0.1%

6.5%

2.9% 4.6%

-15.0

-10.0

-5.0%

0.0%

5.0%

10.0

15.0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Remark: The figures during 1995-2006 are capital raising from listed companies

The figures during 2007-2015 are capital raising from newly-listed companies and listed companies

Source: The Stock Exchange of Thailand

Capital raised from listed companies (Million USD)

GDP Growth (1994 - 2014)

7

Thai companies’ regional and global expansion

3

Domestic growth

Recapitalization after the 1997 financial crisis

1

Capital market has been the main source of fund in the period of

opportunities and challenges

2

Source: World Federation of Exchanges (WFE)

Average daily turnover (2008 – 2016)

Unit: Million USD

8

Thailand has become the most liquid capital market in

ASEAN since 2012

0

500

1,000

1,500

2,000

2,500

2008

2009

2010

2011

Jan

-12

Fe

b-1

2

Mar-

12

Ap

r-12

May-1

2

Ju

n-1

2

Ju

l-12

Au

g-1

2

Sep

-12

Oct-

12

No

v-1

2

Dec-1

2

Jan

-13

Fe

b-1

3

Mar-

13

Ap

r-13

May-1

3

Ju

n-1

3

Ju

l-13

Au

g-1

3

Sep

-13

Oct-

13

No

v-1

3

Dec-1

3

Jan

-14

Fe

b-1

4

Mar-

14

Ap

r-14

May-1

4

Ju

n-1

4

Ju

l-14

Au

g-1

4

Sep

-14

Oct-

14

No

v-1

4

Dec-1

4

Jan

-15

Fe

b-1

5

Mar-

15

Ap

r-15

May-1

5

Ju

n-1

5

Ju

l-15

Au

g-1

5

Sep

-15

Oct-

15

No

v-1

5

Dec-1

5

Jan

-16

Fe

b-1

6

Mar-

16

Singapore Thailand Indonesia Malaysia Philippines

1,040

1,638

1,025

1,130

1,303

829

1,254

825

1,310

878

SET

SGX

Bursa IDX

PSE

SET was upgraded from the Secondary Emerging Market to the Advanced Emerging Market by FTSE

13 Thai listed companies are included in Dow Jones Sustainability Indexes (DJSI)

29 Thai stocks are now included in MSCI Standard index

Thai listed companies achieved the highest marks on the ASEAN

Corporate Governance Scorecard among all ASEAN Countries, assessed by ADB

9

SET and Thai listed companies have been recognized

internationally

Asian Development Bank

SET was the 1st exchange among ASEAN exchanges to join

the UN Sustainable Stock Exchanges Initiative in 2014

Overview of CLMVT Exchanges

T

Lao Securities Exchange est: 2010 listed co: 5 market cap: US$ 1,405 m.

Hochiminh Stock Exchange est: 2000 listed co: 306 market cap: US$ 55,605 m.

Hanoi Stock Exchange est: 2005 listed co: 378 market cap: US$ 6,547 m.

Cambodia Securities Exchange est: 2010 no. of listed co: 4 market cap: US$ 210 m.

The Stock Exchange of Thailand est. 1975 listed co: 643 market cap: US$ 376 b.

Yangon Stock Exchange est: 2015 listed co: 2 market cap: US$ 796 m.

Remarks: data as of June 13, 2016 except Vietnam which use data as of May 21, 2016

10

11 Source: The Stock Exchange of Thailand

&

• At year 2000, helped HOSE to set

up the trading system and

provided relevant support

• Organized training and education

for both HOSE and HNX since

2011

• Signed MoU to support the

development of HOSE

Vietnam Thailand

&

• Organized training and education

with LSX since 2009

• Signed MoU to support the

development of LSX since 2008

Laos Thailand

&

• Organized trainings and seminars

since 2011

• Signed MoU on technical

assistance for the development of capital market (2013)

Myanmar Thailand

&

• Organized training and education

with CSX since 2009

• Signed MoU with CSX to support

the development of the stock

exchange (2014)

Cambodia Thailand

SET has supported CLMV exchanges to further the development of their capital markets

12

Accelerate Capital Market

Development for Sustainable Growth

Build Supply

and Investor

Base

1

Attain

International

Recognition

4

Enhance Market

Quality and

Integrity

2

5

• Corporate governance development

• Investor education

• Listed companies and investment products

• Investor base expansion

• Alignment with international standards

• Harmonization

Secure Government

Policy and Support • Supportive law and

regulatory framework

• Tax incentives for listed

companies and investors

Ensure

Sustainability

3

• Operational efficiency improvement

• Economy of scale

To fast track the development, the CLMVT capital markets

requires holistic framework, efficiency and scale

Various schemes to facilitate securities are available to suit

different capital requirements and business structures

Source: The Stock Exchange of Thailand 13

Bond Market

Equity Market and Unit Trust

Lao Ministry of Finance - THB Sovereign Bond Lao Ministry of Finance issued Thai Baht Sovereign Bond to institutional and high net worth investors 9 series (from May 2013 to June 2015) valued 21,590 M.THB

EDL-Generation Public Company Limited - THB Bond LSX listed private power company has raised 6,500 M.THB (Dec 2014) for future hydropower projects expansion

Both foreign assets and Thai assets are welcome to raise

fund Many channels are available on SET i.e. Infrastructure Trust, REIT, Dual Listing and Primary Listing

14

Investors

Issuers

Thai Capital Market

Investors

Issuers

Developed Capital Markets

Free fund flow among CLMVT capital markets is needed to

enhance investment opportunities and fast track economic

development

Investors Issuers

CLMV

Capital Markets