COMPANY UPDATE

ธนาคารไทยพาณิชย

2 มิถุนายน 2559

SCB TB / SCB.BK

Sector: Bank – OVERWEIGHT

SCB มีแผนการขายหุน SCBLIF จริงหรือไม ?

คําแนะนําพื้นฐาน: ซื้อ เปาหมายพื้นฐาน: 157.00 บาท ราคา (1/06/59): 137.00 บาท Price chart

ประเด็นการลงทุน ไมวาการซื้อขายหุนของ SCBLIF จะเกิดขึ้นหรือไม เราเชื่อวา ธนาคารไทย พาณิชยยังคงมีแนวโนมการเติบโตของกําไรสุทธิที่สดใสในชวงครึ่งปหลัง จากการลดการตั้งสํารองเผื่อหนี้สูญฯ เมื่อเปรียบเทียบกับชวงเดียวกันของ ปกอน (จากกรณีของ สหวิริยาสตีล อินดัสตรี) และหากขาวการซื้อขายหุน ของ SCBLIF เป นความจริ งจะเป นป จจั ยหนุ นหลั กสํ าหรั บการปรั บขึ้ น ประมาณการกํ าไรสุ ทธิ ในป 2559 นอกจากนั้ นเรายั งคาดหวั งการเติ บโต ของสิ น เชื่ อ ที่ อ าจจะสู ง กว า คาดหากรั ฐ บาลสามารถผลั ก ดั น โยบาย ขับเคลื่อนการลงทุนใหเปนไปตามแผนในชวงปลายปนี้โดยเรายังคงแนะนํา “ซื้อ” สําหรับ SCB ประเด็นใหม ผูบริ หารของธนาคารไทยพาณิ ชย ออกมาปฏิเสธที่จะแสดงความเห็นจาก รายงานข า ววานนี้ เกี่ ยวกั บ แผนการขายหุ นของธนาคารใน SCB Life Assurance จํานวน 49% ใหแกพารทเนอรายใหมในตางประเทศ (ตามใน ขาวคือ AIA Group Limited และ Britain’s Prudential PCL เปนหนึ่งใน กลุมพารทเนอที่แสดงความสนใจ) กําไรจํานวนมากหากดีลดังกลาวเกิดขึ้นจริง ปจจุบัน ธนาคารไทยพาณิชย ถือหุนประมาณ 100% ใน SCBLIF (SCB Life Assurance) โดยราคามูลคาทางบัญชี ณ สิ้นป 2558 มีมูลคามากกวา 266 บาทตอหุน โดยหากธนาคารสามารถขายหุน SCBLIF สัดสวน 49% ที่ ราคาเทนเดอรลาสุดเทากับ 1,170 บาท/หุน ใหแกพารทเนอรายใหมไดจริง จะทําให ธนาคารไทยพาณิชยไดรับกําไรมหาศาลถึง 26.5 พันลานบาท หรือคิดเปนกําไรสุทธิหลังหักภาษีเทากับ 7.8 บาท/หุน โดยปจจุบันเรายัง ไมทราบราคาซื้อขายที่แนนอนสําหรับดีลนี้แตเชื่อวาราคาขายไมนาจะต่ํา กวา ราคาที่ธนาคารไดทําเทนเดอรหุน SCBLIF ใน ปลายปที่แลวที่ 1,170 บาท/หุน ซึ่งเราคาดวาอัตราสวนเงินกองทุนตอสินทรัพยเสี่ยงจะเพิ่มขึ้น มากกวา 20% มากที่สุ ดในกลุ มธนาคารจากเดิ ม 18.6% ณ สิ้นเดื อน มีนาคม 2559 โดยกําไรพิเศษดังกลาว ทําใหมีความเปนไปไดที่ธนาคารจะ จายปนผลพิเศษแกผูถือหุนหากดีลดังกลาวประสบความสําเร็จ และสําหรับ ป 2558 ธนาคารไทยพาณิชยจายปนผลใหแกผูถือหุนที่อัตรา 5.50 บาท/ หุน โดยในป 2559 เราคาดวาธนาคารจะจายปนผลปกติในอัตราเทากันกับป กอน (5.50 บาท/หุน)

Price

Bt 205

Rel. to SET

Rel. Idx 110

155

100

105

90

55

80

5 70 06/15 07/15 09/15 11/15 01/16 03/16 05/16

Share price perf. (%) Relative to SET Absolute

1M 1.3 2.6

3M (6.2) (1.1)

12M (9.4) (13.6)

Key statistics Market cap 12-mth price range 12-mth avg daily volume # of shares (m) Est. free float (%) Foreign limit (%)

Consensus rating % 100 80 60 40 20 0

48

Buy

38

Hold Sell

14

Bt465.1bn USD13.0bn Bt112.0/Bt163.0 Bt1,006m USD28.2m 3,395 62.8 45.8

BLS Target price BLS earnings vs. Consensus vs. Consensus Bt 160.0 155.0 150.0 145.0 140.0 135.0

1

Btm 60000

BLS

Cons.

55000 50000 45000 BLS

Cons.

BLS Cons.

40000 16E

17E

Financial summary FY Ended 31 Dec 2014 2015 2016E 2017E Revenues (Btm) 170,411 177,037 166,820 185,166 Net profit (Btm) 53,335 47,182 48,500 55,000 EPS (Bt) 15.69 13.88 14.27 16.18 EPS grow th (%) +6.2% -11.5% +2.8% +13.4% Core profit (Btm) 64,303 67,572 70,469 72,552 Core EPS (Bt) 18.92 19.88 20.73 21.34 Core EPS grow th (%) +3.5% +5.1% +4.3% +3.0% PER (x) 10.6 12.0 11.7 10.3 PBV (x) 2.0 1.8 1.7 1.5 Dividend (Bt) 6.0 5.5 5.5 6.0 Dividend yield (%) 3.6 3.3 3.3 3.6 ROE (%) 20.1 15.9 15.0 15.5

CG/Anti-Corruption

/

4

สุวัฒน บํารุงชาติอุดม นักวิเคราะหการลงทุนปจจัยพื้นฐานดานหลักทรัพย [email protected] +66 2 618 1341

See disclaimer at the end of report

SCB: Financial Tables – Year PROFIT & LOSS (Btm ) Interest income Interest expense Net interest incom e Fee & service income Total non-interest incom e Operating income Operating expenses Operating profit before provision Provisioning charges Operating profit after provision Exceptional items Tax Minority interest Net profit (loss) Reported EPS Fully diluted EPS Core net profit Core EPS PPOP KEY RATIOS Revenue Grow th (%) PPOP Grow th (%) EPS Grow th (%) Net Loan Grow th (%) Cum. LLRs to Net loans (%) Provision charge to loans (%) Yield on Average Assets (%) Cost of Funds (%) Interest Spread (%) Net Interest Margin: NIM (%) Effective tax rate (%) Asset grow th (%) BALANCE SHEET (Btm ) Cash & Equivalent Interbank & securities Investment in securities Net Loan & accrued interests Other assets Total assets Deposits ST debts, REPO & current portion Long-term debt Other liabilities Total liabilities Paid-up capital Share premium Retained earnings Shareholders equity Minority interests Total Liab.&Shareholders' equity

2013 120,691 (47,682) 73,009 43,745 48,246 121,255 (47,317) 73,938 (13,641) 60,297 2,277 (11,821) (519) 50,233 14.78 14.78 62,117 18.27 73,938

2014 123,381 (42,281) 81,100 42,768 44,467 125,567 (48,089) 77,478 (13,214) 64,264 2,563 (13,175) (317) 53,335 15.69 15.69 64,303 18.92 77,478

2015 122,462 (39,628) 82,834 43,190 45,184 128,019 (48,948) 79,071 (29,723) 49,348 9,390 (11,498) (58) 47,182 13.88 13.88 67,572 19.88 79,071

2016E 119,681 (33,996) 85,685 46,856 48,490 134,175 (52,136) 82,038 (20,500) 61,538 (1,350) (11,569) (119) 48,500 14.27 14.27 70,469 20.73 82,038

2017E 126,807 (37,059) 89,747 52,654 54,708 144,455 (57,538) 86,918 (21,000) 65,918 3,651 (14,366) (203) 55,000 16.18 16.18 72,552 21.34 86,918

63.9 24.7 28.0 12.0 3.6 0.8 5.0 2.0 3.0 3.2 18.9 11.6

47.8 4.8 6.2 2.6 3.4 0.8 4.7 1.6 3.1 3.2 19.7 6.5

48.2 2.1 (11.5) 3.0 1.3 1.7 4.4 1.4 3.0 3.1 19.6 2.8

48.4 3.8 2.8 2.0 1.8 1.1 4.3 1.2 3.1 3.2 19.2 2.5

51.5 5.9 13.4 3.1 2.3 1.1 4.4 1.3 3.1 3.2 20.6 4.7

35,755 171,522 504,873 1,679,097 142,960 2,534,206 1,822,911 130,622 55,000 277,633 2,286,166 33,992 11,124 175,569 246,272 1,768 2,534,206

42,132 291,615 502,808 1,721,935 141,214 2,699,703 1,895,343 147,686 55,001 315,375 2,413,405 33,992 11,124 211,301 285,332 966 2,699,703

38,979 260,943 537,000 1,773,174 164,214 2,774,309 1,890,729 151,421 55,002 369,464 2,466,616 33,992 11,124 237,421 307,463 230 2,774,309

39,759 267,467 555,400 1,807,959 172,861 2,843,445 1,887,997 167,836 55,003 394,993 2,505,829 33,992 11,124 267,225 337,267 349 2,843,445

50,500 310,000 591,350 1,863,428 161,348 2,976,625 1,952,397 182,954 55,004 413,847 2,604,201 33,992 11,124 301,830 371,872 552 2,976,625

Asset quality Loan loss reserve Average interest earnings assets Average interest bearing liabilities BV per share ABV per share NPL amounts NPL (%) Equity/loans Equity/NPLs

Loan and asset growth Gross loan growth (%) (LHS) Asset growth (%) (RHS)

% 30 25 20 15 10 5 0 11

12

13

14

15

16E

17E

LDR and loans to deposits + debt %

LDR (%) Loan / (Deposit + Debt) Loan / (Deposit + Debt - RR)

120 110 100 90 80 70 11

12

13

14

15

16E

17E

Net interest margin and interest spread %

NIM (%)

Interest spread (%)

3.5 3.0 2.5 2.0 11

12

13

14

15

16E

17E

Loan loss provisioning bp

Provision charge / Loans (bp) LLR / Net loans (%)

%

200

4 3.5 3 2.5 2 1.5 1 0.5 0

150 100 50 0 11

12

13

14

15

16E 17E

NPLs and reserve against NPLs 60,317 59,014 64,777 32,848 43,348 2,306,871 2,511,511 2,658,730 2,699,484 2,798,800 1,968,793 2,140,949 2,222,533 2,230,855 2,288,077

%

%

NPL (%) (LHS) LLR / NPL (%)

4

200

72.97 74.67

84.23 85.11

90.52 92.99

99.32 101.76

109.56 112.44

3

150

2

100

39,992 214.00 14.67 615.80

42,743 211.00 16.57 667.55

58,996 289.00 17.34 521.16

56,046 290.00 18.65 601.77

53,244 267.81 19.96 698.43

1

50

0

0 11

12

13

14

15

16E 17E

Dividend payout Dividend (Bt) Payout ratio (%)

Bt/Shr

KEY ASSUMPTIONS (%) GDP Grow th Avg Lending Rate/Loan Avg Funding Cost/Funding Mix Net Fee Income Grow th OPEX Grow th 1 Day REPO rate

2013 2.9 6.0 2.2 13.9 9.4 2.5

2014 0.9 6.0 2.1 14.0 11.0 2.0

2015 4.0 6.1 2.3 15.0 10.0 2.5

2016E 4.4 6.1 2.3 15.0 10.0 2.5

2017E 4.4 6.1 2.3 15.0 10.0 2.5

7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

6.00 5.25

%

5.50 5.50

6.00

3.50 3.50

50 40 30 20 10 0

11

12

13

14

15

16E 17E

ธนาคารไทยพาณิชย - 2

SCB: Financial Tables – Quarter QUARTERLY PROFIT & LOSS (Btm ) Interest Income Interest Expense Net interest income Fee & service income Other incom e & MI Total non-interest income Operating inc Operating expenses Operating profit before provision Provisioning charges Operating profit after provision Exceptional items Profit before tax Tax Minority Interest Net profit (loss) EPS Core profit Core EPS KEY RATIOS Asset Yield/Avg Assets (%) Funding Cost (%) Interest Spread (%) Net Interest Margin (%) Fee income/total operating income (%) BV (Bt) ROE (%) ROA (%) Assets to Equities (X) Cost to Income (%) Est CAR (%) QUARTERLY BALANCE SHEET (Btm ) Cash & Equivalent Interbank & securities Investment in securities Gross loan Other assets Total assets Deposits ST debts, REPO & current portion Long-term debt Other liabilities Total liabilities Paid-up capital Share premium Retained earnings Shareholders equity Minority interests Total Liab.&Shareholders' equity BANK DATA Total Income Grow th (%) NII/Total Income (%) Non-NII/Total Income (%) Net Interest Income Grow th (%) Net Fee Income Grow th (%) OPEX Grow th (%)

1Q15 31,028 10,496 20,532 11,255 503 11,758 32,290 12,498 19,792 3,601 16,191 252 16,443 3,277 (14) 13,152 3.87 16,500 4.85

4.6 1.6 3.0 3.2 34.9 87.4 18.1 2.2 9.0 39.3 16.7

2Q15 31,049 10,235 20,814 11,454 706 12,160 32,973 11,766 21,207 5,131 16,076 287 16,363 3,132 (14) 13,218 3.89 18,061 5.31

4.5 1.5 3.0 3.2 34.7 86.6 17.9 2.2 9.4 36.5 16.9

3Q15 29,911 9,840 20,070 10,452 475 10,927 30,997 11,914 19,083 16,002 3,081 8,294 11,375 2,342 (15) 9,018 2.65 16,726 4.92

4.3 1.4 2.9 3.1 33.7 85.7 12.3 1.5 9.5 39.0 17.5

4Q15 30,475 9,056 21,418 10,029 311 10,340 31,758 12,769 18,989 4,989 14,000 557 14,556 2,747 (15) 11,795 3.47 16,227 4.77

4.4 1.3 3.1 3.3 31.6 90.5 15.8 1.9 9.0 40.6 17.3

1Q16 30,421 8,751 21,670 10,955 420 11,376 33,046 11,657 21,389 5,010 16,379 (3,285) 13,094 2,558 10 10,546 3.10 18,841 5.54

4.3 1.2 3.1 3.3 33.2 96.3 13.3 1.7 8.7 35.7 18.6

Net loan growth trend YTD Loan growth (%) FY Loan growth (%)

% 3.5 3 2.5 2 1.5 1 0.5 0 -0.5 -1

3Q14

1Q15

29,392 288,787 533,753 1,836,965 90,129 2,779,025 1,905,330 151,229 115,635 312,338 2,484,532 33,929 11,099 222,095 294,286 208 2,779,025

29,549 297,726 486,646 1,836,303 111,665 2,761,889 1,927,968 90,360 121,342 330,684 2,470,353 33,929 11,099 226,071 291,323 213 2,761,889

38,979 260,943 537,000 1,856,005 81,383 2,774,309 1,890,729 142,937 121,164 311,786 2,466,616 33,929 11,099 237,421 307,463 230 2,774,309

23,724 282,069 616,808 1,861,513 68,849 2,852,963 1,950,956 122,714 119,571 341,066 2,534,307 33,929 11,099 258,788 327,344 312 2,861,963

1Q15 5 64 36 6 3 13

2Q15 5 63 37 2 10 (0)

3Q15 (2) 65 35 (4) 1 (0)

4Q15 (0) 67 33 5 (9) (4)

1Q16 2 66 34 6 (3) (7)

1Q16

Provisioning charge (accumulated) Accum. Provisioning (Bt,m) % of FY Provision

Bt,m 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

100

% 120

100

83

100

73

80 60

24

29

40

12

20 0

3Q14

1Q15

3Q15

1Q16

Net profit trend (accumulated) Bt,m

Accum. Profit (Bt,m) % of FY Profit

60,000 100

50,000 40,000

% 120

100

77

100

75

80

56

30,000

60 28

20,000

40

22

10,000

20

0

0 3Q14

30,413 262,360 506,226 1,830,453 58,568 2,688,020 1,865,491 140,720 113,049 271,326 2,390,586 33,929 11,099 224,118 297,198 237 2,688,020

3Q15

1Q15

3Q15

1Q16

Net interest margin %

FY NIM (%)

NIM (%)

3.5 3.4 3.3 3.2 3.1 3.0 2.9 3Q14

1Q15

3Q15

1Q16

Interest spread FY Interest spread (%) Interest spread (%)

% 3.3 3.2 3.1 3.0 2.9 2.8 2.7 3Q14

1Q15

3Q15

1Q16

Company profile Siam Commercial Bank (SCB) was established on January 30, 1906. It ranks second among Thai banks in terms of loans (Bt1.86trn) and deposits (Bt1.95trn). SCB’s loan portfolio comprises corporate, retail and SME lending in the proportions 36:44:20. With 1,200 branches across the country, the bank has the most extensive network in Thailand

ธนาคารไทยพาณิชย - 3

Sources: Company data, Bualuang Research

0.6

4.2

0.6 1.3 1.0

6.6

10.0 -5.2-6.6 0.0

4Q15

1Q16

3Q15

-10.0

2Q15

1Q16

4Q15

4Q14

-55.0

-0.4

4.9

1Q15

-35.0

40.0

20.0 6.8

4Q14

-45.0

%

30.0

3Q14

-15.0

Growth % (QoQ) 35.3

2Q14

-1.2 -9.1 5.0

-4.2

70,000 60,000 50,000 40,000 30,000 20,000 10,000 -

Classified NPL

1Q14

25.0

Btm

4Q13

45.0

Classified NPLs trend, 2Q13-1Q16

3Q13

2.5

3Q14

2Q14

1Q14

4Q13

3Q13

70,000 25.3 60,000 12.9 9.7 50,000 -2.8 -6.1 40,000 30,000 20,000 10,000 -

2Q13

%

Growth % (QoQ) 39.0 26.1

3Q15

SM

1Q15

Btm

Figure 2 :

2Q13

Special mentioned loan trends, 2Q13-1Q16

2Q15

Figure 1 :

Sources: Company data, Bualuang Research

ธนาคารไทยพาณิชย - 4

Regional Comparisons Bloomberg Code 11 HK 2388 HK DBS SP UOB SP MAY MK CIMB MK 601998 CH 601939 CH BBRI IJ BMRI IJ BBCA IJ BPI PM ICICIBC IN AXSB IN BAY TB BBL TB KBANK TB KKP TB KTB TB SCB TB TCAP TB TISCO TB TMB TB

Hang Seng Bank BOC Hong Kong DBS group Holding UOB Malayan Bank CIMB Group Holding Bhd China Citic Bank China Construction Bank Bank Rakyat Bank Mandiri Tbk PT Bank Central Asia Tbk PT Bank of Philippines ICICI Bank Ltd Axis Bank Ltd Bank of Ayudhya Bangkok Bank KASIKORNBANK Kiatnakin Bank Krung Thai Bank Siam Commercial Bank Thanachart Capital TISCO Financial Group TMB Bank Simple average

Price Market Cap

PER (x)

EPS Growth (%)

(US$ equivalent) 2016E 2017E 34,225 15.7 14.4 32,384 8.2 9.2 28,193 9.0 8.7 21,333 9.6 9.2 19,346 12.4 11.8 9,237 9.8 8.7 38,610 7.1 7.0 161,807 5.4 5.3 18,872 10.0 8.9 15,715 10.6 9.1 23,780 16.6 14.9 7,883 17.5 15.3 20,687 11.0 8.3 18,091 12.1 8.6 7,628 13.6 12.4 8,720 8.7 8.0 11,604 9.3 7.9 979 8.7 7.8 6,659 7.2 6.6 13,036 9.6 8.5 1,218 7.4 7.2 993 7.9 7.6 2,775 8.7 7.8 10.3 9.3

(local curr.) HKD139.1 HKD23.8 SGD15.5 SGD18.3 MYR8.2 MYR4.4 CNY5.8 CNY4.9 IDR10,450.0 IDR9,200.0 IDR13,175.0 PHP93.5 INR240.1 INR512.0 THB37.00 THB163.00 THB173.00 THB41.25 THB17.00 THB137.00 THB34.00 THB44.25 THB2.26

2016E 52.6 147.5 -2.7 -0.9 -7.8 32.1 -8.9 -1.3 1.8 0.7 8.7 17.0 31.3 20.8 7.3 4.7 12.7 20.6 15.8 2.8 7.6 5.9 21.1 16.9

PBV (x)

ROE (%)

2017E 2016E 2017E 2016E 2017E 2016E 2017E 6.6 1.8 1.8 12.3 12.7 4.5 4.4 -19.0 1.1 1.1 12.8 12.6 5.5 5.5 4.1 0.9 0.9 10.4 10.1 3.9 4.0 4.2 1.0 0.9 10.2 10.0 4.1 4.3 4.2 1.2 1.2 10.3 10.3 6.0 6.3 13.1 0.9 0.8 9.0 9.4 3.8 4.4 0.2 0.8 0.7 12.0 11.0 3.7 3.8 3.0 0.8 0.7 15.1 13.9 5.5 5.6 12.5 1.9 1.7 20.9 20.2 2.9 3.3 14.6 1.6 1.4 16.1 16.1 2.5 2.7 11.1 3.1 2.6 19.8 18.9 1.3 1.5 12.6 2.2 2.0 13.4 13.7 2.0 2.1 25.1 1.3 1.2 13.3 15.5 2.2 2.4 40.3 2.0 1.7 18.0 21.3 1.1 1.2 10.0 1.3 1.2 9.8 10.1 2.9 3.2 8.9 0.8 0.8 9.6 9.8 4.1 4.4 16.9 1.2 1.0 14.0 15.2 2.3 2.5 12.5 0.9 0.8 10.3 11.0 7.5 7.9 9.1 0.9 0.8 12.8 12.8 5.3 5.9 13.4 1.4 1.3 15.0 15.5 4.0 4.4 2.6 0.8 0.7 10.4 10.1 5.7 6.2 4.2 1.2 1.1 14.6 14.0 5.6 5.9 11.5 1.2 1.0 13.3 13.3 3.2 3.6 9.6 1.3 1.2 13.2 13.4 3.9 4.1

PER band versus SD (next 12 months)

PBV band versus SD (next 12 months)

x

x

19

+1.5 SD = 17.16x

17 +1.0 SD = 15.06x

15

3.1

+3.0 SD = 2.81x

2.6

+2.0 SD = 2.48x +1.0 SD = 2.15x

+0.50 SD = 12.95x

2.1

LT-average = 10.85x

1.6

9

-0.5 SD = 8.74x

1.1

7

-1.0 SD = 6.64x

0.6

YE15

0.1 YE01

13 11

5 YE01

YE03

YE05

YE07

YE09

YE11

YE13

YE17

PER band and share price

Div Yield (%)

LT-average = 1.82x -1.0 SD = 1.49x -2.0 SD = 1.16x

YE03

YE05

YE07

YE09

YE11

YE13

YE15

YE17

PBV band and share price 1

250

13x 1

200

350 1

11x

300

9x

250

7x

200

5x

150

150 100 50

3.0x 2.5x 2.2x 1.9x 1.6x 1.3x

100

YE03

YE05

YE07

YE09

YE11

YE13

YE15

YE17

0 YE01

Foreign holdings %

SCB

Bank

40

38.2

20 0 1/16

YE03

YE05

YE07

YE09

YE11

YE13

YE15

YE17

Short selling activities during past four weeks

60

12/15

50

2/16

3/16

4/16

5/16

Btm 120 100 80 60 40 20 0

25/4/16 27/4/16 29/4/16 1/5/16 3/5/16 5/5/16 7/5/16 9/5/16 11/5/16 13/5/16 15/5/16 17/5/16 19/5/16 21/5/16 23/5/16 25/5/16 27/5/16 29/5/16 31/5/16

0 YE01 (50)

ธนาคารไทยพาณิชย - 5

DISCLAIMER

Bualuang Securities Public Company Limited

BUALUANG SECURITIES PUBLIC COMPANY LIMITED (BLS) is a subsidiary of BANGKOK BANK PUBLIC COMPANY LIMITED (BBL). This document is produced based upon sources believed to be reliable but their accuracy, completeness or correctness is not guaranteed. The statements or expressions of opinion herein were arrived at after due and careful consideration to use as information for investment. Expressions of opinion contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information shall be at the sole discretion and risk of the user. BUALUANG SECURITIES PUBLIC COMPANY LIMITED MAY BE IN RELATIONSHIP WITH THE SECURITIES IN THIS REPORT. “Opinions, projections and other information contained in this report are based upon sources believed to be accurate including the draft prospectus, but no responsibility is accepted for any loss occasioned by reliance placed upon the contents hereof. Bualuang Securities Public Company Limited may from time to time perform investment, advisory or other services for companies mentioned in this report, as well as dealing (as principal or otherwise) in, or otherwise being interested in, any securities mentioned herein, This report does not constitute a solicitation to buy or sell any securities”. Investors should carefully read details in the prospectus before making investment decision. BUALUANG SECURITIES PUBLIC COMPANY LIMITED MAY ACT AS MARKET MAKER AND ISSUER OF DWs, AND ISSUER OF STRUCTURED NOTES ON THESE SECURITIES. The company may prepare the research reports on those underlying securities. Investors should carefully read the details of the derivative warrants and structured notes in the prospectus before making investment decisions. BUALUANG SECURITIES PUBLIC COMPANY LIMITED IS OR MAY BE AN UNDERWRITER/CO-UNDERWRITER/JOINT LEAD IN RESPECT OF THE INITIAL PUBLIC OFFERING (“IPO”) OF SECURITIES.

Lead underwriter/ Underwriter/ Co-underwriter

Financial Advisor

CG Rating Score Range

Score Range

Description

90 – 100

Excellent

80 – 89

Very Good

70 – 79

Good

60 – 69

Satisfactory

50 – 00359

Pass

Below 50

No logo given

N/A

Anti-Corruption Progress Indicator Level

Description

5

Extended

4

Certified

3B

Established by Commitment and Policy

3A

Established by Declaration of Intent

2

Declared

1

Committed

Partially progress

Partially progress

No progress

No progress

ธนาคารไทยพาณิชย - 6

CORPORATE GOVERNANCE REPORT DISCLAIMER

This research report was prepared by Bualuang Securities Public Company Limited and refers to research prepared by Morgan Stanley. Morgan Stanley does not warrant or guarantee the accuracy or completeness of its research reports. Morgan Stanley reserves copyright and other proprietary rights in the material reproduced in this report. Morgan Stanley is under no obligation to inform Bualuang Securities or you if the views or information referred to or reproduced in this research report change. Corporate Governance Report 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. 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 result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. Bualuang Securities Public Company Limited does not conform nor certify the accuracy of such survey result. "Disclaimer: The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by the relevant institution as disclosed by the Office of the Securities and Exchange Commission, is made in order to comply with the policy and sustainable development plan for the listed companies. The relevant institution made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 562), or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, [•] Securities Company Limited does not confirm, verify, or certify the accuracy and completeness of the assessment result."

BUALUANG RESEARCH – RECOMMENDATION FRAMEWORK

STOCK RECOMMENDATIONS

SECTOR RECOMMENDATIONS

BUY: Expected positive total returns of 15% or more over the next 12 months. HOLD: Expected total returns of between -15% and +15% over the next 12 months. SELL: Expected negative total returns of 15% or more over the next 12 months. TRADING BUY: Expected positive total returns of 15% or more over the next 3 months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 12 months.

ธนาคารไทยพาณิชย - 7