ANNUAL REPORT BANGKOK DUSIT MEDICAL SERVICES Public Company Limited 2012 Philosophy Bangkok Hospital is where advances in medicine meet with compassion. Vision Bangkok Hospital is a premier tertiary healthcare provider, dedicated to international quality, customer focused care. Mission We are committed to being the leader in providing internationally accepted, efųcient and ethical high quality care through a dedicated healthcare team, effective leadership and up to date technology. Our hospitals shall be the medical service facilities with high standard and international quality, for trustworthiness and optimal satisfaction of the customers. Bangkok Hospital intends to continually improve the management system and its services by emphasizing on the continuous quality improvement throughout the organization.

PHYSICAL HEALTH green health

MENTAL HEALTH MEDICAL HEALTH CARE

FOOD & NUTRITION

ENVIRONMENT CONTENT 05 Statement of the Chairman of the Board of Directors 06 Statement of the Chairman of the Executive Committee 08 Financial Highlights 12 Juristic persons in which the company holds 10% of shares or greater 14 Board of Directors 16 Company Management 24 Nature of Business 34 Corporate Social Responsibility Activities 38 Green Health Project 42 Research and Development 44 Healthcare Industry Outlook and Competition 48 Risk Factors 52 Shareholding Structure and Management 62 Good Corporate Governance 74 Connected Transactions 78 Management discussion and analysis 83 Auditor’s Remuneration 85 Report of the Audit Committee 86 The Board of Director’s Report on its Responsibility to the Financial Statements 87 Report of Independent Auditor 88 Financial Statements 100 Notes to Consolidated Financial Statements 149 General Information 150 Juristic persons in which the company holds 10% of shares or greater Statement of the Chairman of the Board of Directors

In 2012, the business and economic situation was as expected, with the domestic economy continuing to grow despite uncertainty of the economy in various regions around the world, which had some impact on the country’s overall economy. However, the global uncertainty did not affect the private hospital business in Thailand. As the Company has made preparations in terms of personnel as well as adjusted our strategies, the Company’s operating revenue has grown, as we had targeted, by 25 percent from the previous year. It is expected that the revenue will continue to grow as a result of the increase in income per capita, increase in number of patients as people pay more attention to their health, increase in aging population and increased medical tourism.

To strengthen our business and prepare for competition in the industry, the Company has continued to give 5 importance to investment in clinical personnel and maintaining medical care standards in both the quality of services and medical innovation to continue improving our quality of care. Furthermore, the Company expects that the introduction of the ASEAN Economic Community (AEC) in 2015 will increase opportunities for growth in the healthcare service sector in Thailand. As Thailand is geographically situated in the center of the ASEAN Region, AEC will enable Thailand to become one of the leading medical tourism destinations. This in turn will lead to increased demand for healthcare services and economic growth, which will contribute to higher purchasing power and greater attention to personal health. A n n u a l R e p o r t 2 0 1 2 1 0 2 t r o p e R l a u n n A Statement of the Chairman of the Board of Directors With the determination to provide the best services and the unity of the physicians and nurses, the Bangkok Hospital (roup is aleading healthcare provides that has been Ŵourishing alongside Thai society for over 40 years. On behalf of the Board of Directors, I would like to thank our shareholders, debenture holders, fellow physicians and all the staff, as well as all stakeholders, for entrusting the Bangkok Hospital network and for continued supporting for the Company as always.

(Professor Emeritus Arun Pausawadi, M.D.) Chairman of the Board of Directors A n n u a l R e p o r t 2 0 1 2 6 Statement of the Chairman of the Executive Committee of theExecutiveCommittee Statement Hospital hasreceivedcerti from JointCommissionInternational(JCI),U.S.A.Inaddition,Bangkok hospitals havereceivedinternationalservicestandardsaccreditation developed andimprovedhealthcareservices.Currently,12ofour At theendoflastyear,BangkokHospitalnetworkcontinuously encompassing Bangkok,suburbsandmajorprovincesacrossthecountry. within thenetwork,bothinThailandandoverseas.We offer5,400beds, alongside Thaisocietyforover40years.Presently,wemanage30hospitals BangkokHospitalisaprivatehospitalbusinessthathasprospered to society. Group, makingitthe namely, BangkokHospitalGroup,Samitivej BNHHospital,PhyathaiHospitalGroupandPaolo promote holisticcaretothesociety.Participantsof projectincluded and healthcareknowledgetotheThaipeople.Inaddition,projectaimhelpadvantagedpeople to with theVejdusit Foundation,theCompanyinitiatedGreenHealthProjectwithobjectivetoprovidemedical alongside Thaisociety.Inadditiontopromotingsocialactivitiesthatwecontinueorganizeyearlyincooperation become aThaihospitalthatmeetsinternationalstandards,wearealsodeterminedtoprovidecareandgrow ApartfromouraimtoexpandanddevelopthestandardofservicesBangkokHospitalnetwork doctors. DOCTOR”, whichprovidesemergencymedicalcareandallowsremotepatientstoreceivefromspecialist the Thailand andSaudiArabia)toreceivesuchhonorfromFIFA. Furthermore,in2012,BangkokHospitalnetworkwas Centre ofExcellence.We arethe ų rst privatehospitalinThailandtousetechnologysupportmedicalservicesbyintroducingthe ų rst projectinThailandthatbroughttogether26private hospitalsinbringinghealthcare oftheChairman ų cation fromFIFA, namely,FIFA ų rst privatehospitalinThailandandASEANthethirdAsia(Japan, . edical ų ve hospitalgroupswithinthenetwork, Ķ 2 ROBO atar, In terms of operating results, looking back to 2010, which was the year the Board of Directors made the decision to merge with the Phyathai Hospital and Paolo Hospital Groups, we were concerned about the outcome of the merger, the change in organizational culture and personnel at all levels, including physicians and nurses. However, today, we are pleased to say that the decision and our determination has endeavored cooperation within the large private hospital network and strengthened the Company. Consequently, the operating results in 2012 has escalated signiųcantly with medical care revenue increasing from Baht 23,513 million in 2010 to Baht 35,224 million in 2011 and Baht 44,307 million in 2012. The Company’s assets increased from Baht 32,197 million in 2010 to Baht 5,792 million in 2011 and Baht 6,461 million in 2012. .arket capitalization also increased from Baht 57,940 million in 2010 to Baht 126,728 million in 2011 and Baht 175,409 million at the end of 2012.

As the ASEAN Economic Community will be introduced in 2015, our experience and the trust that we have Statement of the Chairman Executive Committee continued to receive gives us the conųdence that we are ready to provide medical care services to the ASEAN 7 population that will Ŵow into Thailand. I am conųdent that the medical staff within the Bangkok Hospital network are equipped with the knowledge, capabilities and potential to prove the medical abilities of Thai physicians to the world and will lead this organization to become the number one medical organization in the region as they have done so in the past.

On behalf of Bangkok Dusit .edical Services Public Company -imited, I would like to express sincere gratitude to our shareholders, customers, as well as business alliances who have continuously supported the Bangkok Hospital network. I would also like to thank the Board of Directors, doctors, nurses, management and all personnel for your A n u a l R e p o r t 2 0 1 determination and dedication in your duties so that the Bangkok Hospital network may continue to be stable and strong with sustainable growth for many years to come.

(Mr. Prasert Prasarttong-Osoth, M.D.) Chairman of the Executive Committee A n n u a l R e p o r t 2 0 1 2 8 F i n a n c i a l H i g h l i g h t s Financial 1,000 1,200 1,400 1,600 SET Index 200 400 600 800 5 YearsSharePrices(2008-2012)ComparedtoSETIndex Jan-08 0 Operations and GrowthonRevenuefromHospital Revenue fromHospitalOperations 23,513 2010 8.9% Jul-08 Jan-09 35,224 49.8% 2011 Bangkok DusitMedicalServicePublic Co.,Ltd.SharePrice SET Index from HospitalOperations Growth onRevenue Revenue fromHospitalOperations Highlights Jul-09 44,307 25.8% 2012 Jan-10 Jul-10 Including non-recurringitems Net profitandProfitMargin Jan-11 2,295 2010 9.6% Jul-11 11.9% 4,386 2011 Net Pro Net pro Jan-12 ų ų t Margin t (MillionBaht) Jul-12 BGH SharePrice(Baht) 17.3% 7,937 2012 0 20 40 60 80 100 120 ucaea euto naqiiino ...Lbrtre opn iie n21 2/ Board-approved rate asof12 purchase asaresultofanacquisitionA.N.B.Laboratories CompanyLimitedin2010 1/ Excludingnon-recurringitemswhich areconsistedofgainonfairvalueadjustmentinvestmentsin2012and 2011andgai Interest Coverage Net Interest-BearingDebttoEBITDA Net Interest-BearingDebttoEquity Total Interest-BearingDebttoEquity Leverage andCoverageratios)(x) Average PayablePeriod(days) Average InventoryPeriod(days) Average Collection(Days) Liquidity Ratio(x) Assets &LiabilitiesManagement Return onAverageEquity Return onAverageAssets Returns (%) Net Pro Net Pro 1 Net Pro Growth onRevenuefromHospitalOperations Growth Ratios(%) Financial Ratios Dividend PerShare(Baht) Basic EarningsPerShare(Baht) Book ValuePerShare(Baht) Share CapitalIssueandFullyPaid Information aboutCommonShares Net pro Operating Income Revenue fromHospitalOperations Income Statements Total Shareholders’Equity Total Liabilities Total Assets Balance Sheets EBITDA Margin(Excludingnon ro ų tabilit ų ų ų ų t Margin t Margin(Excludingnon t Growth t Z Ratios(%) (in millionBaht) 1/ (in millionBaht) nd March2013  recurring items)  recurring items)  up (MillionShare) 1/ 1/ 1,545.5 45,994 44,307 38,827 29,634 68,461 7,937 0221 2010 2011 2012 12.6 47.4 12.3 30.8 22.9 12.5 17.3 13.4 23.3 81.0 25.8 25.1 1.5 0.4 0.5 0.8 5.1 1.8 2/ 1,545.5 36,726 35,224 33,417 25,375 58,792 4,386 21.6 23.2 11.1 39.8 12.2 26.5 18.4 11.9 10.6 91.1 49.8 1.5 0.4 0.5 1.2 9.6 1.1 3.0 n onabargain 23,968 23,513 1,246.0 16,283 15,914 32,197 2,295 23.0 33.0 13.1 31.5 26.5 15.4 8.9 0.8 1.9 9.5 1.5 0.5 0.7 8.7 0.8 7.3 9.6 9.5

A n n u a l R e p o r t 2 0 1 29 F i n a n c i a l H i g h l i g h t s 10 A n n u a l R e p o r t 2 0 1 2 Y o u r T r u s t e d H e a l t h c a r e N e t w o r k Your Trusted Healthcare Network 11 A n n u a l R e p o r t 2 0 1 2 Y o u r T r u s t e d H e a l t h c a r e N e t w o r k 12 A n n u a l R e p o r t 2 0 1 2 Juristic persons in which the company holds 10% of shares or greater holds 10%ofsharesorgreater Juristic persons BCM BRH BSH BHH BPK BPH BCH BTH BKY BKH BIO BHI BHH BH BDMS Training BDMS Inter B-Cop BCM BCH ANB AIH Initial 100.0 100.0 100.0 97.3 99.7 99.8 98.8 99.7 Bangkok HospitalKhaoYai Co.,Ltd. Bangkok HospitalRatchasimaCo., Ltd. (Thailand) Co.,Ltd. Bio-Molecular Laboratories Bangkok HealthInsuranceCo.,Ltd. Bangkok HospitalHadyaiCo.,Ltd. Bumrungrad HospitalPLC. BDMS Training Co.,Ltd. Services Co.,Ltd. BDMS InternationalMedical Bangkok HelicopterServicesCo.,Ltd. Bangkok HospitalChaingmaiCo.,Ltd. Wattanavej Co.,Ltd. A.N.B. LaboratoryCo.,Ltd. Asia InternationalHealthcareCo.,Ltd. BIO PPMS International BDMS BKY SVH BKH BUD GLS BNH Company Name 100.0 100.0 100.0 100.0 100.0 95.0 95.8 90.4 91.5 inwhichthecompany Health First Irving SSH Sodexho More than 99.0 96.0 68.1 74.0 MP KDH Irving GLS First Health Cool &Joy BUD BTH BSH BRH BPK BPH BPD BPB BNH nta CompanyName Initial 90% BPB BKK Royal NPMS BHI Training BDMS AIH Medicpharma Co.,Ltd. Krungthon HospitalCo.,Lt.d Irving SheridanSECo.,Ltd. Greenline SynergyCo.,Ltd. First HealthFoodCo.,Ltd. Cool &JoyCo.,Ltd. Bangkok HospitalUdonCo.,Ltd. Bangkok HospitalTrad Co., Ltd. Bangkok HospitalSamuiCo.,Ltd. Bangkok HospitalRayongCo.,Ltd. Bangkok HospitalPattayaCo.,Ltd. Bangkok HospitalPattayaCo.,Ltd. Bangkok HositalPrapradaengCo.,Ltd. Bankok PremierLifeInsuranceCo.,Ltd. BNH MedicalCenterCo.,Ltd. as atDecember31,2012 100.0 100.0 100.0 100.0 100.0 100.0 Dhabi Royal Abu ANB 100.0 30.0 PYTS PYT 3 PYT 2 PYT 1 PSAMUT PPMS PPFP PPCL PNW PMED PCHOK NPMS NHS PNW PCHOK PSAMUT PMED PPCL Initial 100.0 99.8 85.7 93.3 98.3 Sriracha NakornGeneralHospital PLC. The PhayaThai3HospitalCo.,Ltd. The PhayaThai2HospitalCo.,Ltd. Phaya Thai1HospitalCo.,Ltd. Paolo SamutPrakranCo.,Ltd. Public Co.,Ltd Phnom PenhMedicalServices Phnom PenhFirstPropertyCo.,Ltd. Prasit PatanaPlc. Thai MedicalCenterPLC. Paolo MedicCo.,Ltd. Siam MedicalCo.,Ltd. New PetchburiMedicalServicesCo.,Ltd. National HealthcareSystemsCo.,Ltd. PYTS PYT3 PYT2 PYT1 Company Name 100.0 66.5 98.2 99.1 50-89% Rattanak Royal Pisith Angkor NHS BPD 70.0 80.0 74.0 79.0 Udon Pattana SVH SSH Sodexho Seam Reap S.R. Property RRH Royal BKK Royal AbuDhabi RAM RAH nta CompanyName Initial 20-49% B-COP MP PPFP Reap Seam Property S.R. BH JOY COOL & KDH RAM Udorn PattanaCo.,Ltd. Samitivej Plc.(SVH) Samitivej SrirachaCo.,Ltd. (Thailand) Co.,Ltd. Sodexo HealthcareSupportService Seam ReapInvesmentCo.,Ltd. S.R. PropertyCo.,Ltd. Royal RattanakMedicalServicesCo.,Ltd. Royal BangkokHealthcareCo.,Ltd. Service LLC. Al GhaithBangkokDusitManagement Ramkhamhaeng HospitalPlc. Angkor PisithCo.,Ltd. 49.0 49.0 49.0 49.0 49.0 23.9 30.0 20.0 38.2 Less than Pattana Udon

20% 15.3 13 A n n u a l R e p o r t 2 0 1 2 Juristic persons in which the company holds 10% of shares or greater Board of Directors

1 2 3

5 6 7 B o a r d f D i e c t s

14 9 10 11 A n u a l R e p o r t 2 0 1 13 14 15 12 8 4 8. Mr.ChirotchanaSuchato,M.D. 7. Mr.PraditTheekakul 6. Mr.ChatreeDuangnet,M.D. 5. Mr.Pongsak Viddayakorn, M.D. M.D. 4. Mr.PrasertPrasarttong-Osoth, 3. Mr.WichaiThongtang M.D. 2. Mr.ChuladejYossundharakul, 1. Professor Emeritus Director to CEO Director /Executiveadvisor Medical Center CEO ofBangkok Hospital Officer –MedicalAffairs, Director ,ChiefOperating Director CEO &President 2nd ViceChairman Director Directors Chairman oftheBoard Arun Pausawasdi,M.D. 15. Mr.Thongchai Jira-alongkorn 15. 14. MissKananuchLekwijit 13. Mr.SripopSarasas Íëç«# 12. Mr.SomchaiSujjapongse, 11. Mr.ChawalitSetthmethikul 10. Mr.ThavatvongThanasumitra SantasiriSornmani,M.D. 9. Professor Emeritus Director Committee Member ofAudit Independent Director/ Committee Member ofAudit Independent Director/ Committee Member ofAudit Independent Director/ Independent Director Director Director Committee /Independent Chairman ofAudit 15 A n n u a l R e p o r t 2 0 1 2 B o a r d o f D i r e c t o r s 16 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t Noted Ļ Relationship amongothermanagement Ļ Number ofshareholding* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Ļ Ļ Ļ Thailand Ļ Other Position Ļ Mahidol University Ļ AssociationofThailand Ļ Ļ Ļ Ļ Experience MahidolUniversity Ļ Ļ Hamburg,German Ļ Ļ DirectorsAssociation Ļ Education 75 years Chairman oftheBoardDirectors Arun Pausawasdi,M.D. Professor Emeritus None 381,781shares(0.03%) 15/16 1998 Director ofChaoPhyaMedicalCenterCo.,Ltd. Director ofChaoPhyaHospitalPLC Vice President,SirirajFoundation Member of the Thaimedicalregistrationlicensecommittee Vice President, ThePrinceMahidolAwardFoundation Chairman, Centre forContinuingMedicalEducationof Director oftheMedicalAssociatio Dean, FacultyofMedicineSirirajHospital, Chairman ofScienti Secretary General,RoyalCollegeofSurgeonsThailand President, RoyalCollegeofSurgeonsThailand Assistant toMinistryofPublicHealth MedicalDoctor,FacultyofMedicineSirirajHospital, Certi FacharztfurChirurgie,TheMedicalCouncilof Dr.Med,HamburgUniversity,German Company Management Directors AccreditationProgramClass45,ThaiInstituteof ų cate ofMedicalClinic,MahidolUniversity * :Outstanding sharesheld asof18 : Company Management Pro ų c SessionMedical,TheMedical n ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. Experience Medicine Ļ JointStatePrivateSector,Class1 Ļ Directors Association Ļ Education 79 years CEO &President Mr. PrasertPrasarttong-Osoth,M.D. Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Ļ Other Position Siriraj Hospital Ļ Ļ Ļ

Bachelor Degree fromSirirajMedicalSchool,Universityof Certi Directors AccreditationProgramClass45,ThaiInstituteof None 294,517,734share(19.06%)* 16/16 1994 Chairman, A.N.B. LaboratoriesCo.,Ltd. Chairman, Bangkok AirwaysHoldingCo.,Ltd. Director/ CEO, BangkokAirwaysCo.,Ltd. Surgeon inDepartment ofSurgery,FacultyMedicine Member of National LegislativeCouncil Member of National LegislativeCouncil(Senator) Bangkok DusitMedicalServicesPLC. ų cate fromNationalDefenseCollege,Courseforthe Noted Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Ļ Other Position Ļ Ļ Ļ Experience Mahidol University Ļ Ļ DirectorsAssociation Ļ Education 80 years Director Mr. ChuladejYossundharakul,M.D. None 27,565,795Shares(1.78%) 16/16 1994 Director, Royal BangkokHealthcareCo.,Ltd. Director, Bangkok HospitalPattaya,Co.,Ltd. Chairman, Bangkok HospitalPrapadaengCo.,Ltd. Hospital Director, BangkokHospital Hospital Director, KarunaPitakHospital Head, Surgical Unit,NationalCancerInstitute Medical Doctor, FacultyofMedicineSirirajHospital, Diplomate ofAmericanBoardSurgery Directors AccreditationProgramClass45,ThaiInstituteof * :Outstanding sharesheld asof18 : Company Management Pro ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. Ļ Ļ Ļ Education 66 years 2nd ViceChairman Mr.Wichai Thongtang Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ ofGrandAssetHotelsandPropertyPcl. Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Other Position Ļ Ļ Ļ Ļ Ļ Ļ Experience Bangkok, Thailand Ļ ThammasatUniversity,Bangkok,Thailand Ļ Ļ Ļ Ļ Directors Certi Audit CommitteeProgram(ACP)#3 Directors AccreditationProgram(DAP)#15 None 184,998,269shares(11.97%) 15/16 2011 Executive Vice PresidentofIVGlobalSecurities Chairman of theBoard,Yannaphan Plc. Chairman of theBoard,HealthNetworkPlc. President and CEOofSikarinHospitalPlc. Bachelor’s Degree ofLaw,ThammasatUniversity, Master’s Degree ofPublicAdministration, Capital Market Academy#9 Role ofthe Chairman Program(RCP)#11 Financial for Non-FinanceDirector(FND)#21

Chairman ofCableThaiHoldingPcl., Executive VicePresidentofMetromachineryCo.,Ltd. Chairman oftheBoardDirectorsandExecutiveDirector Vice ChairmanofBangkokDusitMedicalServicesPcl. Head oftheWichaiThongtangLawFirm Chairman oftheBoard,PaoloNawaminCo.,Ltd Chairman oftheBoard,PaoloChokchai4Co.,Ltd Chairman oftheBoard,PaoloSamutprakarnCo.,Ltd Chairman oftheBoard,PaoloMedicCo.,Ltd Chairman oftheBoard,SrirachaNakornHospitalPcl. Chairman oftheBoard,Phyathai3HospitalCo.,Ltd Chairman oftheBoard,Phyathai2HospitalCo.,Ltd. Chairman oftheBoard,Phyathai1HospitalCo.,Ltd. Chairman oftheBoard,PrasitPatanaPcl. Chairman ofAuditCommittee,KPNAutomotivePlc. Vice ChairmanofKPN,Yamaha Group ų cation Program(DCP)#62 17 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t 18 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t Noted Relationship among othermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Other position Ļ Ļ Ļ Ļ Ļ Experience Ļ Ļ Ļ Ļ Ļ Ļ Ļ Education 79 years Director Mr. Pongsak Viddayakorn, M.D. Ļ MetropolitanAdministrationGovernor(Healthcare) CouncilofThailand Mahidol University Mahidol University Directors Association Chairman, RoyalBangkokHealthcareCo.,Ltd. Chairman, AsiaInternationalHealthcareCo.,Ltd. Chairman, BangkokPremierBrokerageInsuranceCo.,Ltd. Chairman, B.D.M.SInternationalMedicalServicesCo.,Ltd. Vice Chairman,AngkorPisithCo.,Ltd. Chairman, BangkokHospitalKhao-Yai Co.,Ltd. Director, ThaiMedicalCentrePLC. Director, SiamMedicCo.,Ltd. Director, PaoloSamutPrakarnCo.,Ltd. Director, PaoloMedicCo.,Ltd. Director, SrirachanakornGeneralHospitalPLC. Director, Phyathai3HospitalCo.,Ltd. Director, Phyathai2HospitalCo.,Ltd. Director, Phyathai1HospitalCo.,Ltd. Director, PrasitPatanaPLC. Chairman, BangkokRatchasimaHospitalCo.,Ltd. Chairman, BangkokPhuketHospitalCo.,Ltd. Vice Chairman,SamitivejPLC. Director ofMedicalAssociation Chairman, PrivateHospitalAssociation Member ofconsultationcommitteetheBangkok Director ofTheMedicalHeathCareCentreTeacher President /BangkokDusitMedicalServicesPCL. Medical Doctor,FacultyofMedicineSirirajHospital, Post GraduateStudy,UniversityofPennsylvania,USA. DTM&H Diploma,FacultyofTropical MedicineandHygiene, Certi Honorary DoctorateinBusinessManagement,ChristianUniversity Directors AccreditationProgramClass45,ThaiInstituteof Honorary DoctorateinHumanities,UniversitiesofBaguio 100,000Shares(0.01%) 15/16 1994 None ų cate fromNationalDefencesCollege * :Outstanding sharesheld asof18 : Company Management Pro ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. Ļ Relationship among othermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointed Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Other Position Assurance&Utilization ReviewPhysicians,USA Ļ Pennsylvania, USA Ļ County,Pennsylvania, USA Ļ NewCastle,Pennsylvania, USA Ļ PennsylvaniaStateUniversity, Pennsylvania,USA Ļ Ļ Ļ Experience Ļ Ļ Ļ Ļ Ļ Ļ DirectorsAssociation Ļ Education 68 years CEO ofBangkok HospitalMedicalCenter Director ,ChiefOperatingOfficer–MedicalAffairs, Mr. ChatreeDuangnet,M.D. None 180,000Shares/(0.01%) 16/16 2006 Director,SupeiorBioTech Co.,Ltd. Director,RoyalBangkokHealthcareCo.,Ltd. Director,SodexhoHealthcareSupportServices(Th)Co.,Ltd. Director,AsiaInternationalHealthcareCo.,Ltd. Director,BangkokHealthInsuranceCo.,Ltd. Director,RattanakMedicalServicesCo.,Ltd. Director,PhnomPenhMedicalServicesCo.,Ltd. Director,AngkorPisithCo.,Ltd. Director,B.D.M.SInternationalMedicalServicesCo.,Ltd. Director,BangkokHelicopterServicesCo.,Ltd. Director,BioMolecularLaboratory(Thailand)Co.,Ltd. Director,NationalHealthcareSystemsCo.,Ltd. Director,PaoloNawaminCo.,Ltd Director,PaoloChokchai4Co.,Ltd Director,PaoloSamutprakarnCo., Ltd Director,PaoloMedicCo.,Ltd Director,SrirachaNakornHospital Plc. Director,Phyathai3HospitalCo., Ltd Director,Phyathai2HospitalCo., Ltd. Director,Phyathai1HospitalCo., Ltd. Director,PrasitPatanaPlc. Chairman,BangkokHospitalUdon Co.,Ltd. Chairman,GreenlineSynergyCo., Ltd. Chairman,BangkokHospitalSamui Co.,Ltd. Training coursesinQA/UR/RM.AmericanBoardofQuality PhysicianExecutive,JamesonHealth System,NewCastle, President,LawrenceIndependent PhysicianAssociation,Lawrence ChairmanoftheBoard,Jameson PhysicianHospitalOrganization, ClinicalAssistantProfessorofPediatrics, CollegeofMedicine, ChiefExecutiveAdministrator,Bangkok Hospital, GroupChiefMedicalOf MedicalDoctor,FacultyofMedicine, ChulalongkornUniversity Certi Fellow,AmericanAcademyofPediatrics Certi Fellow,AmericanCollegeofMedicalQuality Certi DirectorsAccreditationProgramClass54,ThaiInstituteof ų ų ų ed, AmericanBoardofPediatrics ed, AmericanBoardofQualityAssurance&UtilizationReviewPhysicians ed ofNationalDefenseCollege ų cer, BumrungradHospital,Bangkok Noted Ļ Relationship among othermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector GroundHandlingCo.,Ltd. Ļ Ļ Ļ Ļ Ļ BangkokAirwaysCo.,Ltd. Ļ Ļ (Thailand)Co.,Ltd. Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Other position RamkamhaengUniversity/Bangkok,Thailand Ļ Ļ Ļ ThaiInstituteofDirectorsAssociation Ļ Education 54 years Director /ExecutiveadvisortoCEO Mr. PraditTheekakul None 563,000Shares/(0.04%) 16/16 2008 Director, Worldwide FlightServicesBangkokAir Chairman, BangkokAirCatering,WFS-PGCargoCo.,Ltd. Director, ThaiPetroleumServiceCo.,Ltd. Director, Catering–BangkokAirwaysCo.,Ltd. Director, BangkokAirwaysHoldingCo.,Ltd. Senior ExecutiveVicePresident-Administration Director, Sodexo SupportServices(Thailand)Co.,Ltd. Director, Sodexo HealthcareSupportServices Director, BDMS Training Co.,Ltd. Director, A.N.B. LaboratoriesCo.,Ltd. Director, Bangkok HelicopterServicesCo.,Ltd. Director, Paolo NawaminCo.,Ltd Director, Paolo Chokchai4Co.,Ltd Director, Paolo SamutprakarnCo.,Ltd Director, Paolo MedicCo.,Ltd Director, Sriracha NakornHospitalPlc. Director, Phyathai 3HospitalCo.,Ltd Director, Phyathai 2HospitalCo.,Ltd. Director, Phyathai 1HospitalCo.,Ltd. Director, Prasit PatanaPlc. Director, Bangkok HospitalUdonCo.,Ltd Director, Samitivej PCL. Bachelor Degree orArts(PoliticalScience) The ThaiBarrister Bachelor DegreeofLawChulalongkornUniversity/Bangkok Directors Certi * :Outstanding sharesheld asof18 : Company Management Pro ų cation ProgramClass29th, ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. Ļ Education 77 years Director Mr. ChirotchanaSuchato,M.D. Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Ļ Ļ Ļ Ļ Other position of Thailand Ļ Ramathibodi Hospital Ļ Ļ Experience Mahidol University Ļ Houston, Texas Ļ DownstateUniversityofNewYork Ļ ThaiInstituteofDirectorsAssociation

None 39,408,009Shares(2.55%) 16/16 1994 Director, Asia InternationalHealthcareCo.,Ltd. Director, Bangkok PremierBrokerageInsuranceCo.,Ltd. Director, Bangkok HealthInsuranceCo.,Ltd. Director, Bangkok HospitalKhao-Yai Co.,Ltd. Director, Bangkok HospitalPhuketCo.,Ltd. Chairman, Bangkok HospitalPattayaCo.,Ltd Consultant to Radiology,ClinicofTheTeacher Council Professor of Radiologydivision,FacultyofMedicine, SchoolDirector,ofX-Tray Technician Medical Doctor, FacultyofMedicineSirirajHospital, Graduated Course RadiobiologyatM.D.AndersonHospital, Diplomate ofAmericanBoardRadiology, Directors AccreditationProgramClass45, 19 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t 20 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t Noted Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Position ParasiticDiseases,WHO Ļ Ļ Ļ Experience Mahidol University Ļ Ļ ThaiInstituteofDirectorsAssociation Ļ Education 78 Years Independent Director Chairman ofAuditCommittee/ Santasiri Sornmani,M.D. Professor Emeritus None 1,715,127Shares(0.11%) 16/16 1994 Vice Chairman, ChureevejCo.,Ltd.(ChureevejHospital) Chairman,TheMedicPharmaCo.,Ltd. Member, Expert CommitteeonFoodBorne Dean, Faculty ofTropical Medicine,MahidolUniversity VicePresidentforAdministration,MahidolUniversity Medical Doctor, FacultyofMedicineSirirajHospital, Ph.D. (Tropical Medicine),LiverpoolUniversity Directors AccreditationProgramClass43, * :Outstanding sharesheld asof18 : Company Management Pro ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. HandlingCo.,Ltd. Ļ Ļ Ļ Ļ Ļ BangkokAirwaysCo.,Ltd. Ļ ThaiInstituteofDirectorsAssociation Other position Ļ Experience Ļ Education 65 years Director Mr. ThavatvongThanasumitra Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointed Ļ

None 4,860,016Shares(0.31%) 14/16 1999 Director, Worldwide FlightServicesBangkokAirGround Chairman, BangkokAirCatering,WFS-PGCargoCo.,Ltd. Managing Director,ThaiPetroleumServiceCo.,Ltd. Director, BangkokHelicopterServicesCo.,Ltd. Vice President,Catering–BangkokAirwaysCo.,Ltd. Bachelor ofLaw,ThammasartUniversity Managing Director,AirLankaCateringServiceCo.,Ltd. Directors Certi Director, SeniorExecutiveVicePresidentofFinance, ų cation ProgramClass27th, Noted Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointed Ļ Development PCL. Ļ Other position Ļ Ļ Ļ Authority Ļ Corporation Ļ MinistryofFinance Ļ Ļ Ļ MinistryofFinance Ļ Experience ThaiInstituteofDirectorsAssociation Ļ ThaiInstituteofDirectorsAssociation Ļ PublicAdministration,ThammasatUniversity Ļ Class 40 Ļ ThaiBarAssociation Ļ Thammasat University Ļ Education 65 years Independent Director Mr. ChawalitSetthmethikul None None 15/16 2011 President :SrirachaHarbourPCL. ChairmanofTheBoardDirectors:HemarajLandand Director :TheThaiBAR Director :Of Vice President :TheBoardofAirportsThailandPCL. Vice Chairman :TheBoardofMetropolitanElectricity Chairman: The BoardofSmallBusinessCreditGuarantee Deputy Director-General :TheExciseDepartmentof Inspector of MinistryofFinance Deputy Permanent SecretariesofMinistryFinance DirectorGeneralofTheThaiCustomsDepartment, Director Certi Directors Accreditation ProgramClass6/2003, Master ofPolitical Science(M.Pol.Sc), Diploma from NationalDefenceCollegeofThailand, Barrister atLaw,InstituteofLegalEducation, Bachelor ofLaws(LL.B.)(SecondClassHonors), * :Outstanding sharesheld asof18 : Company Management Pro ų ų ce ofThecouncilState cation Program(DCP)Class74, ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. Ļ Bangkok, Thailand Ļ Columbus,Ohio,U.S.A. Ļ Columbus,Ohio,U.S.A. ThaiInstituteofDirectorsAssociation Ļ Education 51 years Member ofAuditCommittee Independent Director/ Mr. SomchaiSujjapongse,Phd. Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Ļ Other position Ļ of Finance Ļ Ļ Experience Ļ Ļ Ļ FiscalPolicyOf Ļ FiscalPolicyOf Ļ FiscalPolicyOf Ļ MinistryofFinance Ļ MinistryofFinance Directors Certi B.A. (Economics) (Hons.)1984/ChulalongkornUniversity/ M.A. (Economics) 1985TheOhioStateUniversity/

None None 9/16 2011 Director, BoardofThaiOilPublicCompanyLimited Director, BoardofAeronauticalRadioThailand Director,BoardofMetropolitanElectricityAuthority Director-General FiscalPolicyOf Director-General TheCustomsDepartment,Ministry Director-General StateEnterprisePolicyOf Deputy Director-General FiscalPolicyOf Fiscal Policy AdvisorFiscalPolicyOf Director, Economic RehabilitationPlanningandPolicyDivision Director, Savings andInvestmentPolicyDivision Director, Fiscal PolicyandPlanningDivision Director, Fiscal RiskManagementGroup Director, Bureau ofFiscalPolicyOf Ph.D. (Economics)1990TheOhioStateUniversity/ ų ų ų ų cation ProgramClass75th, ce/ MinistryofFinance ce /MinistryofFinance ce /MinistryofFinance ų ce, MinistryofFinance ų ce MinistryofFinance ų ce / ų ce (SEPO) ų ce / 21 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t 22 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t Noted Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector KiattanaTransport PCL. Ļ AdvancedInformationTechnology PCL. Ļ TheRoyalCeramicIndustryPCL. Ļ Other position Conservation PCL Ļ Ļ Ļ Experience UniversityofSouthernCalifornia,U.S.A. Ļ Ļ ThaiInstituteofDirectors Ļ ThaiInstituteofDirectors Ļ Education 56 years Member ofAuditCommittee Independent Director/ Mr. SripopSarasas None None 16/16 2008 Director /Member ofAuditCommittee Director /Member ofAuditCommittee Director/MemberofAuditCommittee Chief Executive Of Managing Director/ PhatraSecuritiesPCL. President & CEO KrungThaiAssetManagementPCL Master Degree inBusinessAdministration(Finance) Diploma Thai InstituteofDirectors Certi Certi ų ų cate, AuditCommitteeProgram–ACP1/2004 cate, DirectorCerti * :Outstanding sharesheld asof18 : Company Management Pro ų cer GeneralEnvironmental ų cation Program22/2002 ų le as of31 th December 2012includes spousesanddependents (ifany). st December 2012. Ļ Ļ Ļ Experience Ļ Education 56 years Independent Director Miss KananuchLekwijit Ļ Ļ Ļ Ļ Other position Ļ Education 53 years Director Mr.Thongchai Jira-alongkorn Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Ļ Ļ Other position Ļ ThaiInstituteofDirectors Association Director ofHealth NetworkPublicCompanyLimited Director ofMetro GraniteCompanyLimited DirectorofKornthipCompanyLimited Director/ ManagingDirector, ThonburiPahich LeasingCo.,Ltd. General Manager,ViriyahLeasingCo.,Ltd Managing director,ViriyahInternationalBroker Co.,Ltd. DeputyManagingdirector,Viriyah InsuranceCo.,Ltd None 3,993,092shares(0.26%) 16/16 2011 Director ofSaithong BusinessCompanyLimited DirectorofPaoloMedicCompanyLimited Directors Certi Master ofArt(M.A.)fromKasetsartUniversity Bangkok University,SchoolofBusiness AdministrationmajorMarketing ų cation ProgramClass27th, Noted GovernmentofSweden Ļ Financial Institutions InstituteofBankingandFinance forExecutivesfrom Ļ Directors Association Ļ Ļ Ļ byKingPrajadhipok’sInstitute DemocraticSystemsforExecutives,class13 Ļ Association&IMD “EnhancingCompetitiveness”byThaiListedCompanies Ļ CapitalMarketAcademy(CMA)TheStockExchangeofThailand Ļ EconomicsfromChulalongkornUniversity,Thailand Ļ Ļ Education 55 years Chief FinancialOfficer Mrs. NarumolNoi-am Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ CommercialCo.,Ltd. Ļ Ļ Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Board ofDirectormeetingattendance Ļ Year ofappointedtobeadirector Applied International Management Program,Swedenby Financial ExecutiveDevelopment ProgramClass12byTheThai Directors Certi Class 6/2010byThaiInstituteofDirectorsAssociation Successful Formulation&ExecutionofStrategy Advanced Certi TLCA LeadershipDevelopmentProgram Leader ProgramCapitalMarketAcademyClass15by Bachelor ofEconomics(secondclasshonors)Faculty Managing Director,V.GroupMitsuautosalesCo.,Ltd. Managing Director,V.M.S.CarSalesCo.,Ltd. Managing Director,ViriyahMazda(2004)Co.,Ltd. Managing Director,VSKAutomobileCo.,Ltd. Managing Director,VIGAutomobile(2003)Co.,Ltd. Managing Director,V.S.RAutosalesCo.,Ltd. Managing Director,V.S.T.Autosales(2002)Co.,Ltd. Managing Director,ViriyahAutosalesCo.,Ltd. Managing Director,ViriyahNakarinCo.,Ltd. Managing Director,S.V.T.Property2003Co.,Ltd. Director/ VicePresident,VIGCarRentCo.,Ltd. Director/ ManagingDirector,ThonburiAutomotive Director/GeneralManagerT.B.B.LeasingCo.,Ltd. None 1,137,336Shares(0.07%) 10/10** 2012 MBA BankingandFinance,fromNorthTexas StateUniversity,USA : Outstandingshares heldasof18 : * attend the Boardof Directors meeting since Board ofdirector meeting no 4/2012. * Directors hadbeen appointedbythe AGM2012 heldon20 : ** ų cation ProgramClass107byThaiInstituteof ų cate CourseinPoliticsandGovernance th December2012 includesspousesanddependents (ifany). Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Ļ Experience Ļ Education 62 years Chief ofDoctor Mr TrinCharumilind Ļ MahidolUniversity,Thailand Ļ Ļ TheUnitedStates Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Ļ Other Position IndustrialFinanceCorporationofThailand Ļ TMBBankPublicCompanyLimited Ļ Experience Ļ Relationship amongothermanagement Ļ Number ofcompanyshares* Director, BDMSTraining Co.,Ltd. Director, BangkokHealthInsuranceCo.,Ltd. Director, BangkokHelicopterServicesCo.,Ltd. Director, GreenlineSynergyCo.,Ltd. Director, NationalHealthcareSystemCo.,Ltd. Director, AngkorPisithCo.,Ltd. Director, PaoloMemorialHospitalNawamin Director, PaoloMemorialHospitalChokchai4 Director, PaoloMemorialHospitalSamutprakarn Director, PaoloMemorialHospitalPhaholyothin Director, PhyathaiSrirachaHospital Director, Phyathai3Hospital Director, Phyathai2Hospital Director, Phyathai1Hospital Director, PrasitPatanaPCL. Director, BangkokHospitalChiangmaiCo.,Ltd. Director, BangkokHospitalUdonCo.,Ltd. Director, BangkokHospitalPhuketCo.,Ltd. Director, BangkokHospitalPattayaCo.,Ltd. Director,ThaiListedCompaniesAssociation Senior VicePresident,FinanceDepartment SeniorVicePresident,InvestmentBankingDepartment None None None None ChiefMedicalOf Director ofBangkokAllergyandAsthmaCenter Faculty ofMedicineSirirajHospital/ Diplomat AmericanBoardofPediatrics/TheUnitedStates Diplomat AmericanBoardofAllergyandImmunology/ th April2012,which directorswereondutyand ų cer, BangkokHospitalMedicalCenter 23 A n n u a l R e p o r t 2 0 1 2 C o m p a n y M a n a g e m e n t 24 A n n u a l R e p o r t 2 0 1 2 N a t u r e o f B u s i n e s s Nature of outsidethehospital,interpretercanuseWirelessIPPhonetocommunicateatanytime. andinterpreters’computersforcommunicationexchangingofinformation.Inthecasethatinterpreter is areavailable24hoursadayusingUni applicationsthatprovideinterpretationof3majorlanguages,namely,Japanese,ArabicandEnglish.Interpreters fromoverseas.Thesystememploysthevideophonetoprovideinterpretersin26languages.There are - TheCompanyinstalledtheTele Interpretersystemtoimprovecommunicationsbetweenphysiciansandpatients sharesfromtheexistingshareholders,whichincreasedCompany’sownershipto19.47%. pershare,increasingtheCompany’sownershipfrom16.31%to16.95%.TheCompanyalsoboughtadditional - TheCompanybought114,391,922sharesofrightsissuesPrasitPattanaPublicLimitedatBaht 1 inKhaoYai, NakornratchasimaProvince. holding100%ofthetotalsharesoutstanding,tooperateaprivatehospitalthatcaterspeopleandtourists - TheCompanyestablishedtheBangkokHospitalKhaoYai CompanyLimited,withBaht70millioncapitaland 2009 x-raytodetectanddiagnoseacutecoronarysyndromeatBangkokHeartHospital. - TheCompanyboughtthe256-slicemulti-detectorCTscan,newestinnovationinhigh-speed,computerized forthebestinterestsofendusersandtolowercostsassociatedwithinformationtechnologydevelopments. informationtechnology.TheaimofthisnewcompanyistostandardizetechnologywithintheGroup - TheCompanyestablisheda100%ownedsubsidiary,GreenlineSynergyLimited,toactasthecenterfor 2008 Major DevelopmentsinthePastFiveYears Baht 1,545.46million. limited in1994.Presently,theCompanyhasaregisteredcapitalofBaht1,700.00million,withpaid-up listed ontheStockExchangeofThailand2ndOctober1991andregistereditsconversiontopubliccompany February 1972,BangkokHospitalcommencedoperationsinprovidingmedicalservices.TheCompanywaslater “Bangkok DusitMedicalServicesCompanyLimited”withaninitialregisteredcapitalofBaht10million.On26th BangkokDusitMedicalServicesPublicCompanyLimitedwasregisteredon30thOctober1969underthename History Business ų ed Communicationtechnology.Thesystemisinstalledonthephysicians’ aswella blood banktostoreandreserve blood. diagnosislaboratory whichmeetshigh standards, diseasebyateamofhematology physiciansand toprovidemedicalcare topatientswithblood theBangkokHematologyCenter on20thAugust2010 - WattanosothHospital,the cancerhospital,opened providedtotheGroup. inordertoimproveinformationtechnologyservices holds100%,fromBaht30millionto200 CompanyLimited,asubsidiaryinwhichthe - TheCompanyincreasedcapitalinGreenlineSynergy andpaid-upcapitalofKDH. numberofsharesheldequalto20.01%registered theStockExchangeofThailand,resultingintotal Later,theCompanyacquiredadditionalsharesthrough 16.82%ofregisteredandpaid-upcapitalKDH. shareholdersofKDHwithinitialinvestmentequalto privatehospital,byacquiringsharesfromexisting StockExchangeofThailandandoperatinga150-bed CompanyLimited“KDH”,acompanylistedonthe - TheCompanyinvestedinKrungthonHospitalPublic 2010 brainsurgery. instrumentstoassistinprovidingthebestspineand - TheSpineAcademy,BangkokHospitalacquiredsurgical thespinetowithinafractionofmillimeter. exactlocationofbraintumorsorvariouspointsin assiststhesurgeoninaccuratelydetermining the instrument usedinspineandbrainsurgery,which Ļ highest accuracy. onsmallareasorinpinningthespinewith spineduringsurgery,enablingsurgeonstooperate resulting photographispreciseandpinpointsthe ComputerizedTomography throughX-Ray.The thespineandsurroundingareasusing Ļ Intraoperative CTscanner,orO-arm,photographs Surgical Navigator(“Stealth7”)aninnovative anddoesnot requireanesthesia. greatlyreduces patient’sanxietyofcon enterthetunnelwhengetting ascanasbefore,which suchmachineinThailand. Patientsdonotneedto - TheCompanyinvestedinan OpenMRI1.0T,theonly exportsequalingabout20% oftotalsales. distributesmedicineandmedicalsupplieswith Inaddition,thecompanyalsoproducesand the4thlargestproducerofsalineincountry. withtotalinvestmentofBaht734.0million.ANBis fromexistingshareholderson1stDecember2010 ofA.N.B.LaboratoriesCompanyLimited(“ANB”) Theincreasedcapitalwasusedtoacquireallshares capitalofBaht1.0millionto736.0million. theCompanyholds100%,frominitialregistered HealthcareCompanyLimited,asubsidiaryinwhich - TheCompanyincreasedcapitalinRoyalBangkok 2010andhascurrentlycompletedtheliquidation. registeredtheclosingofbusinesson5thNovember theBangkokHospitalHuaHinCompanyLimited thebusinessandallassetstoparentcompany, tomeettheCompany’spolicy.Aftertransferof personnel,whichwillincreaseoperationalef resources,especiallyinmanagementofmedical TheBangkokHematologyCenterprovidesef increase HuaHin,inordertoreducemanagementcostsand CompanyLimited,asabranchofBangkokHospitalin subsidiarytoBangkokDusitMedicalServicesPublic operationsoftheBangkokHospitalHuaHinfrom purposeoftheEntireBusinessTransfer wastotransfer hospitalinHuaHin,PrachuabkirikhanProvince.The holds100%andwasestablishedasa60-bedprivate CompanyLimited,asubsidiaryinwhichthe EntireBusinessTransfer ofBangkokHospitalHuaHin On28thOctober2010,theCompanyexecutedan - TheCompanywentthroughsomerestructuring. holisticmedicalcaretopatientswithblooddisease. Ŵ exibility inmanagementofoperationsand ų ned spaces ų ciency ų cient 25 A n n u a l R e p o r t 2 0 1 2 N a t u r e o f B u s i n e s s - The Bangkok Spine Academy has performed minimal invasive spine surgery using a microscope to reduce pain and blood loss and for faster recuperation. - The Bangkok Heart Hospital and the Paciųc Rim Electrophysiology Research Institute established the “Paciųc Rim Electrophysiology Research Institute at Bangkok Hospital” and the “Cardiac Electrophysiology Clinic” headed by Dr. Koonlawee Nademanee, an American Board cardiologist specializing in cardiac electrophysiology. The Institute provides diagnosis and treatment of a variety of irregular heart rhythms (cardiac arrhythmias) using catheter ablation, electrophysiology and cardiac device implantation. - The Company invested in the Bi-plane DSA used in diagnosis and treatment of strokes and other blood vessels with visual effects using 2 megapixel digital imaging. The technology enables doctors to more efųciently diagnose by creating 3 dimension imaging, which can clearly show blood vessels that are as thin as a strand of hair. 2011 - In 2011, the Company invested in 103,827,600 common shares of Bumrungrad Hospital Public Company Limited (“BH”), equal to 14.22% of outstanding shares sold of BH. - The Extraordinary Shareholders’ Meeting 1/2011 on 24th February 2011 approved the merger of the Company and Health Network Public Company Limited (Phyathai Hospital Group and Paolo Hospital Group) through an Entire Business Transfer of Health Network Public Company Limited, which is majority held by Mr. Wichai Tongtang and family. The Company paid a total of Baht 9,825,357,789 for the merger, comprised of newly issued common shares of the Company in the amount of no more than 230,870,405 shares at Baht 37.75 per share, equal to no

N a t u r e o f B s i n more than Baht 8,715,357,789 and cash of approximately Baht 680,000,000, as well as transfer of loans and interest incurred from Health Network in the amount of no more than Baht 430,000,000. The Meeting also 26 approved the tender offer for all shares of Prasit Pattana Public Company Limited. - The Company registered additional capital of Baht 1,481,034,024 on 1st April 2011 to pay for the entire business transfer of Health Network Public Company Limited. This increased the Company’s holding in Prasit Pattana Public Company Limited (Phyathai Hospital Group: Phyathai Hospital 1-3 and Phyathai Hospital Sriracha) from 19.47% to 68.64%. In addition, the Company now holds shares of 4 companies within the Paolo Memorial Hospital Group, namely, 100% of Paolo Medic Company Limited (Paolo Memorial Hospital Phaholyotin), 88.73% of Paolo Samutrprakarn Company Limited (Paolo Memorial Hospital Samutrprakarn), 80.72% of Siam Medical Company Limited (Paolo Memorial Hospital Chokchai 4) and 99.76% of Thai Medical Center Public Company Limited (Paolo Memorial Hospital Nawamintr). Consequently, after the mergers, the Company now has 27 hospitals in the Group, from 19 (25 hospitals in Thailand and 2 hospitals in Cambodia), with a total of 4,987 beds, up from A n u a l R e p o r t 2 0 1 3,193 beds. - The Company made a tender offer on Prasit Pattana Public Company Limited (“PYT”) with a period of 25 business days from 8th April to 23rd May 2011. Payment was offered in two ways, namely, Baht 3.71 cash per share or common shares of the Company (“BGH”) at 10.1706 PYT shares for 1 BGH share. The respondents must choose either option.

After the tender offer, the Company held 97.10% of 2009 on 14 rai of land and began providing medical PYT outstanding shares, up from 68.64%. The Company services under Bangkok Hua Hin Medical Clinic on 1st issued 64,366,277 rights shares to respondents who November 2010. The Bangkok Hospital Hua Hin is chose to receive BGH shares, resulting in Baht comprised of 5 Ŵoors with 60 beds. The ųrst Ŵoor 1,545,400,481 of paid-up capital from Baht 1,481,034,024. accommodates out-patients and emergency services. - The Company increased paid-up capital by another The second Ŵoor houses surgery theaters and ICU. Baht 58,402 to accommodate the conversion of the On the third Ŵoor, there are the Bio Molecular convertible bonds to common shares of the Company, Laboratory, Administration ofųces, Executive ofųces resulting in a paid-up capital of Baht 1,545,458,883. and training facilities. The fourth and ųfth Ŵoors are The convertible bonds matured in July 2011, therefore, for in-patient rooms. Total usable area is 12,000 the Company no longer has any convertible bond square meters. The helicopter pad for patient transfers N a t u r e o f B s i n obligations. to hospitals in Bangkok is on the 6th Ŵoor. 27 - The Company invested in an additional 1,474,000 - Bangkok Hospital opened the Bangkok Sports and common shares of Udon Pattana (1994) Company Exercises Medicine Center and uses sports and Limited (Ake Udon Hospital) equal to 4.9%, resulting exercise medicine in healing and developing physical in 4,474,000 shares or 14.9% of shares outstanding, ability of athletes, both professionals and amateurs, up from 3,000,000 shares or 10%. When including both national team athletes and the general public, ownership of Udon Pattana shares through Prasit so that they may play sports or exercise efųciently Pattana Public Company Limited and Ramkamhaeng with less injury. The Center also provides rehabilitation Hospital Public Company Limited, a subsidiary and after playing sports by expert physicians in sports associated company respectively, the Company medicine. In addition, Bangkok Hospital provided holds 28.17% of shares outstanding of Ake Udon medical check-ups to Thai national team athletes A n u a l R e p o r t 2 0 1 Hospital. for SEA Games, Asian Games and the Olympic Games, - The Company set up a subsidiary, “Bangkok Premier as well as sponsored the Football Association of Life Insurance Broker Company Limited” with registered Thailand, taking care of the Thai national football and paid-up capital of Baht 4.0 million (Baht 10 par value). team for more than 15 years. Presently, the subsidiary has registered and paid-up - Wattanosoth Hospital performed advanced medicine capital of Baht 20 million. by utilizing PET/CT in detecting brain cell deterioration to ųnd the cause in the of Alzheimer disease in the Services early stages. - The Company ofųcially commenced operations of - Wattanosoth Hospital purchased the CT Simulator to Bangkok Hospital Hua Hin on 6th April 2011. better view details of X-rays in 3D, which reduced the Construction on the Hospital started on 11th November time in planning treatment. - The Bangkok Spine Academy, Bangkok Hospital, organized the biggest spine seminar of the year entitled “Master Classes in Advanced Spine Surgery” and was honored to have Dr. Rick Delamarter and Dr. Daniel K. Riew, renowned spine surgeons from the United States, as guest speakers. The event was attended by Dr. Phudhiphorn Thienprasit, Senior Director of the Bangkok Spine Academy, along with the surgical team to exchange experiences in spine medicine. - The Embassy of Japan and Bangkok Hospital organized the cooperation agreement signing ceremony between Bangkok Hospital and 10 hospitals in Japan. The event was presided over by His Excellency Mr. Seiji Kojima, the Ambassador of Japan to Thailand and Dr. Prasert Prasarttong-osoth, CEO& President. Bangkok Hospital, as well as representatives from hospitals in Japan. This signiųed the good relationship between hospitals in Thailand and Japan. - Bangkok Hospital opened Bangkok Plaza, a center for food, 24-hour convenience store and banking services to provide convenience to patrons of the Hospital and people living in Soi Soonvijai area on 11th November 2011. - The Bangkok Hospital opened Bangkok Hospital Counter Service in the departure area of Suvarnnabhumi International Airport to provide services to foreign patients who travelled to Thailand to receive medical care at the Hospital. - Bangkok Hospital Ratchasima Company Limited, a subsidiary in which the Company holds 89.7% opened the “Bangkok Hospital Pakchong”, a 30 bed hospital in Pakchong District, Nakornratchasima Province, making it the 28th hospital in Thailand for the Bangkok Hospital network (26 hospitals in Thailand and 2 hospitals in Cambodia. N a t u r e o f B s i n

28

2012 - The Company invested in an additional 70,522,600 common shares of Bumrungrad Hospital Public Company Limited equal to 9.66% of registered and paid-up capital. Consequently, the Company now holds 174,350,200

A n u a l R e p o r t 2 0 1 shares or 23.88% of registered and paid-up capital of Bumrungrad Hospital Public Company Limited. - The Annual General Meeting of the Shareholders in 2012 approved the decrease of registered capital in the amount of Baht 7,932,525 from Baht 1,553,391,408. This resulted in new registered capital of Baht 1,545,458,883. The Meeting also approved increase in registered capital by way of a general mandate in the amount of Baht 154,545,888 from Baht 1,545,458,883, resulting in new registered capital of Baht 1,700,004,771for Ŵexibility in raising capital for the business. However, to date, the Company has not increased capital through said general mandate. - Bangkok Dusit Medical Services Public Company Limited made a tender offer for all outstanding shares of Prasit Pattana Public Company Limited (“PYT”) in order to delist shares of PYT from the Stock Exchange of Thailand with the Ofųce of the Securities and Exchange Commission. After the tender offer, Prasit Pattana Public Company Limited delisted shares from the Stock Exchange of Thailand on 4th May 2012 and the Company now holds 98.32% of Prasit Pattana Public Company Limited. - The Company established a new 100% owned subsidiary under Bangkok Hospital Chiangmai Company Limited to construct a 200-bed hospital in Muang District, Chiangmai Province with registered capital of Baht 1,000 million and paid-up capital of Baht 250 million. - The Company established a new 100% owned injuries sustained by the athletes and rehabilitation subsidiary under Bangkok Hospital Udorn Company as well as increasing physical ųtness, preparation Limited to operate a 120-bed private hospital on techniques before games and sports techniques for Thongyai Road in Muang District, Udornthani Province the greatest efųciency of the athletes, including with registered and paid-up capital of Baht 500 million. nutrition and sports psychology. The subsidiary bought the business from Udorn - Bangkok Hospital opened the Bangkok Academy Panyavej Hospital and ofųcially commenced business of Sports and Exercise Medicine (BASEM) to strengthen as Bangkok Hospital Udorn on 12th December 2012, our capabilities and raise the level of service with making it the 29th hospital in the Bangkok Hospital Group. over Baht 70 million invested. BASEM was established to meet our objective of being the leader in health - The Bangkok Hospital network is visionary in introducing N a t u r e o f B s i n technological innovation, namely ROBO DOCTOR or care, to meet the lifestyles of the new generation Remote Presence System from U.S.A., to increase that like to exercise and play sports, as well as to 29 efųciency of patient care. Patients have close and provide care for sports-related injuries and analysis fast access to specialist physicians so that people in of problems in playing sports. The services include remote areas can be treated by standardized specialists. medical care of injuries sustained by the athletes ROBO DOCTOR has been introduced in three hospitals, namely, Bangkok Hospital (Soi Soonvijai), Bangkok and rehabilitation as well as increasing physical Hospital Phuket and Bangkok Hospital Pattaya to ųtness, preparation techniques before games and provide efųciency in patient referral and fast access sports techniques for the greatest efųciency of the to specialists. Patients and doctors are able to athletes, including nutrition and sports psychology. interact face-to-face and exchange information, Services in sports medicine will support Thailand’s which strengthens efųciency of care and conųdence desire to be the medical hub and lead Bangkok A n u a l R e p o r t 2 0 1 of the patients in accepting medical care. Hospital to become the top sports medicine institute - Bangkok Hospital Medical Center and the College of Sports Science and Technology, Mahidol University in ASEAN. received the FIFA Medical Centre of excellence - Bangkok Premier Life Insurance Broker, a subsidiary, Certiųcate from Jiri Dvorak, M.D., FIFA Chief Medical which has expertise in health insurance within the Ofųcer. We are the ųrst in Thailand and the ASEAN Bangkok Hospital network, has joined hands with Muang region and third in Asia (Japan, Qatar, Thailand and Thai Life Assurance Company Limited to raise standard Saudi Arabia) to receive such honor. Currently, there of living and health care by introducing an innovative are only 26 medical institutions around the world life insurance product, health insurance and open up that have received such recognition. This clearly shows the continued dedication and role of Bangkok various channels of service. The cooperation has Hospital Medical Center in sports medicine. We have brought about newly developed health insurance been responsible for taking care of the health of policies that meet the needs of the consumers to national football players and team members of the access quality medical care while saving costs when Thai premier league, in terms of medical care of in need. - The Phyathai Hospital Group and the Bangkok Hospital Group joined forces to open the Phyathai 3 Heart Center by Bangkok Heart Hospital with a budget of over Baht 100 million to expand client base in Thonburi area. Reiterating the Group’s leadership in heart hospitals that meet international standards and the use of Off-Pump CABG. Moreover, the heart hospital provides complete service in health care and heart disease with state-of- the-art technology and a team of specialists in all ųelds of heart disease to meet the international standards (JCI) and provide heart patients in the Thonburi area with the same level of service as received at Bangkok Heart Hospital. The Hospital provides complete diagnosis and treatment of heart and coronary disease from initial diagnosis, examination using special equipment, care and prevention of heart disease, surgery and after surgery recovery, as well as rehabilitation of the heart using internationally recognized modern medical

N a t u r e o f B s i n equipment and technology. - The Bangkok Hospital Group joined forces with the Paolo Memorial Hospital Group to develop medical technology 30 and medical services by opening the “Cancer Center” Paolo Memorial Hospital by Wattanosoth Hospital to meet the needs and lifestyles of patients as much as possible. The Center provides complete services in the prevention and treatment of cancer from detection of ųrst stages of cancer, planning, treatment once detected to radiology to stop the spreading of cancer cells by a team of specialist doctors. - The Bangkok Spine Academy, Bangkok Hospital announced the success of a new surgical technique developed in Thailand to treat back pain through Direct Lateral Interbody Fusion (DLIF). The surgery treats back and leg pain caused by the spine pressing on the nerves or scoliosis. The distinctive points of this surgery are that it does not destroy the back muscles, less blood loss, small scar, and fast recovery. This technique uses Intraoperative Neuromonitoring sent through a 1-inch tube to monitor the nerves and spine. Then a replacement Intervertebral A n u a l R e p o r t 2 0 1 disc is inserted making the spine stronger, enabling it to carry more body weight and lessening back pain. Moreover, the technique can effectively treat Spondylolisthesis or Scoliosis in elderly patients without having to make incisions along the back muscles, which may help lessen chronic back pain, median nerve entrapment, loose screws or loss of back muscle that occur after conventional surgery. - Bhumibol Adulyadej Hospital, Wattanosoth Hospital and Paolo Memorial Hospital Nawamin, being three public and private hospitals, joined together to organize the memorandum of understanding signing ceremony entitled “Out-Patient Referral for Radiology Treatment” for cancer patients using state-if-the-art medical technology to increase potential of radiology treatment for cancer patients of every group. 1. Private Hospitals Business Number Total number % of Number Hospital Operated By of bed of Bed Holding Bangkok Hospital Group 1 Bangkok Hospital Bangkok Dusit Medical Services PLC. 343 2 Bangkok Heart Hospital Bangkok Dusit Medical Services PLC. 97 3 Wattanosoth Cancer Hospital Bangkok Dusit Medical Services PLC. 48 4 Bangkok Hospital Hua hin Bangkok Dusit Medical Services PLC. 60 5 Bangkok Hospital Prapradang Bangkok Prapradang Hospital Co., Ltd 60 79.00% 6 Bangkok Hospital Pattaya Bangkok Pattaya Hospital Co., Ltd 400 97.22% 7 Bangkok Hospital Rayong Bangkok Rayong Hospital Co., Ltd 220 100.00% 8 Bangkok Hospital Chantaburi Wattanavej Co., Ltd. 170 99.69% 9 Bagnkok Hospital Trat Bangkok Trat Hospital Co., Ltd. 114 99.76% 10 Bangkok Hospital Ratchasima Bangkok Hospital Ratchasima Co., Ltd. 300 90.36% 11 Bangkok Hospital Pakchong Bangkok Hospital Ratchasima Co., Ltd. 30 90.36% 12 Bangkok Hospital Udon Bangkok Hospital Udon Co., Ltd. 120 100.00% 13 Bangkok Hospital Samui Bangkok Samui Hospital Co., Ltd. 50 100.00%

14 Bangkok Hospital Phuket Bangkok Phuket Hospital Co., Ltd. 317 99.68% N a t u r e o f B s i n 15 Bagnkok Hospital Had Yai Bangkok Had Yai Hospital Co., Ltd. 165 2,494 98.79% 31 Samitivej Group ïøĉþĆì ÿöĉêĉđüß ÝĈÖĆé (öĀćßî) 16 Samitivej Hospital (Sukumvith) Samitivej Plc. (SVH) 275 95.76% 17 Samitivej Hospital (Srinakarin) Samitivej Plc. (SVH) 400 95.76% 18 Samitivej Hospital (Sriracha) Samitivej Sriracha Co., Ltd. 150 825 68.06% 19 BNH Hospital BNH Medical Center Co., Ltd. 144 144 91.48% Royal Hospital Group Angkor Pisith Co., Ltd. 20 Royal Angkor Pisith Angkor Pisith Co., Ltd. 21 80.00% 21 Royal Rattanak Hospital Rattanak Medical Services Co., Ltd. 30 51 70.00% A n u a l R e p o r t 2 0 1 Phayathai Group ïøĉþĆì ēøÜó÷ćïćúóâćĕì 1 ÝĈÖĆé 22 Phaya Thai 1 Hospital Phaya Thai 1 Hospital Co., Ltd. 350 100.00% 23 Phaya Thai 2 Hospital Phaya Thai 2 Hospital Co., Ltd. 260 99.15% 24 Phaya Thai 3 Hospital Phaya Thai 3 Hospital Co., Ltd. 230 98.20% 25 Phaya Thai Sriracha Hospital Phaya Thai Sriracha Hospital PLC. 257 1,097 66.53% Paolo Memorail Hospital Group ïøĉþĆì đðćēúđöéĉÙ ÝĈÖĆé 26 Paolo Memorial Hospital Phaholyothin Paolo Medic Co., Ltd. 237 100.00% 27 Paolo Memorial Hospital Samutprakarn Paolo Samut Prakran Co., Ltd. 200 93.30% 28 Paolo Memorial Hospital Chokchai 4 Siam Medical Co., Ltd. 120 85.69% 29 Paolo Memorial Hospital Nawamin Thai Medical Center PLC. 140 697 99.76% 5,308 32 A n n u a l R e p o r t 2 0 1 2 N a t u r e o f B u s i n e s s 2. NonHospitalsBusiness Remark :*Companyhelddirectly15.26%andtroughsubsidiary13.3% Number Group ofinvestedHospital(Companyhasnotmanage) 11. Insurancebroker 10. Training 9. HealthcareBusiness(HoldingCompany) 8. Landholdingcompanyincambodia companyandthesubsidiaries 7. CarteringandGeneralsupportfor companyandthesubsidiaries 6. Marketingandpromotionsupport 5. MedicalEvacuation andtheSubsidiariesShareservice 4. Informationandtechnologyforcompany 3. BioMolecularLab (centralpurchaseandaccounting) 2. MedicalLabandShareServices equipment 1. Manufacturesalineandmedical 33 32 31 30 Bumrungrad Hospital Krungthon Hospital Ramkamhaeng Hospital Aek UdonInternationalHospital Nature ofBusiness optlOperatedBy Hospital Bangkok PremierLifeInsuranceCo., Ltd. Bangkok HealthInsuranceCo.,Ltd. BDMS Training Co.,Ltd. Royal BangkokHealthcareCo.,Ltd. Asia InternationalHealthcareCo.,Ltd Phnom PenhFirstPropertyCo.,Ltd Siem ReapLandInvestmentCo.,Ltd. S.R. PropertyInvestmentCo.,Ltd. which isthecompanysubsidiary) (Held troughSamitivejPLC, Irving SheridanSECo.,Ltd. which istheSamitivejPLC.'ssubsidiary) (Held troughFirstHealthFoodCo.,Ltd., Sodexo HealthcareSupportService(Thailand)Co.,Ltd. which isthecompanysubsidiary) (Held troughSamitivejPLC, First HealthFoodCo.,Ltd. Cool &JoyCo.,Ltd. Bangkok HelicopterServicesCo.,Ltd. Greenline SynergyCo.,Ltd. Bio-Molecular Laboratories(Thailand)Co.,Ltd. trough subsidiary24.9%) (Company helddirectly74%and National HealthcareSystemsCo.,Ltd. Medicpharma Co.,Ltd. which isthecompanysubsidiaryown100%) (Held troughRoyalBangkokHealthcareCo.,Ltd., A.N.B. LaboratoryCo.,Ltd. Bumrungrad HospitalPCL Krungthon HospitalPCL Ramkamhaeng HospitalPCL. Udon Pattana(1994)Co.,Ltd. Operated By Number of bed 538 150 300 350 Total number of Bed 1,338 % ofholding 100.0 100.0 100.0 100.0 100.0 100.0 100.0 49.0 49.0 49.0 96.0 74.0 99.0 30.0 49.0 95.0 98.9 49.0 Holding 23.94% 20.01% 38.24% 28.56%* % of Revenue Structure of Company and Subsidiaries Between year 2010-2012 Unite : Million Baht 2012 2011 2010 Type of Operated by % of revenue Holding Revenue % Revenue % Revenue % Patient revenue Bangkok Dusit Medical Services PLC. 100.0 9,909.3 22.4 8,218.7 23.3 7,182.8 30.5 Samitivej PLC. (SVH) 95.8 7,580.7 17.1 6,687.7 19.0 5,887.9 25.0 BNH Medical Center Co., Ltd. 91.5 1,869.9 4.2 1,579.7 4.5 1,466.1 6.2 Prasit Patana PLC. (PPCL) 98.3 8,714.1 19.7 5,632.8 16.0 Paolo Medic Co., Ltd. (1)(2) 100.0 1,979.3 4.5 1,339.0 3.8 Siam Medical Co., Ltd.(1)(2) 85.7 712.7 1.6 480.8 1.4 Thai Medical Center PLC. (1)(2) 99.8 675.3 1.5 420.3 1.2 Paolo Samut Prakran Co., Ltd. (1)(2) 93.3 1,087.3 2.5 720.3 2.0 Bangkok Hosital Prapradaeng Co., Ltd. 79.0 240.2 0.5 202.9 0.6 181.7 0.8 Bangkok Hospital Pattaya Co., Ltd. 97.3 3,167.5 7.1 2,793.1 7.9 2,499.7 10.6 Bangkok Hospital Rayong Co., Ltd. 100.0 1,575.9 3.6 1,359.9 3.9 1,193.5 5.1 Bangkok Hospital Trad Co., Ltd. 99.8 321.3 0.7 299.4 0.8 275.2 1.2 Wattanavej Co., Ltd. 99.7 852.3 1.9 717.0 2.0 647.3 2.8 33 Bangkok Hospital Had Yai Co., Ltd. 98.8 1,110.0 2.5 944.8 2.7 770.5 3.3 Bangkok Hospital Samui Co., Ltd. 100.0 545.9 1.2 459.4 1.3 432.8 1.8 Bangkok Hospital Phuket Co., Ltd. 99.7 2,319.1 5.2 2,065.8 5.9 1,839.3 7.8 Bangkok Hospital Ratchasima Co., Ltd. 90.4 1,113.2 2.5 925.6 2.6 817.9 3.5 Bangkok Hospital Udon Co., Ltd. 100.0 73.6 0.2 Angkor Pisith Co.. Ltd. 80.0 112.8 0.3 95.5 0.3 83.9 0.4 Rattanak Medical Services Co., Ltd. 70.0 176.0 0.4 155.8 0.4 130.2 0.6 A n u a l R e p o r t 2 0 1 N a t u r e o f B s i n Total 44,136.4 99.6 35,098.4 99.6 23,408.8 99.6 Other revenue which related to patient revenue National Healthcare Systems Co., Ltd. 74.0 168.9 0.4 121.1 0.3 55.6 0.2 Bio-Molecular Laboratories 95.0 2.0 0.0 5.0 0.0 48.2 0.2 (Thailand) Co., Ltd. Total 170.90 0.39 126.10 0.4 103.80 0.4 Total revenue from operation 44,307.3 100.0 35,224.5 100.0 23,512.6 100.0

Remarks 1 Subsidiaries from the Company acquisition in year 2011 2 Subsidiaries from the Company acquisition in year 2012 34 A n n u a l R e p o r t 2 0 1 2 C o r p o r a t e S o c i a l R e s p o n s i b i l i t y A c t i v i t e s Corporate SocialResponsibility - Project“BasicLifesavingSkills(CPR)”:BangkokHospitalrealizesthatthedeathratefromvariousemergency - Project“UrbanitesUniteforGoodHealth”:BangkokHospitalinassociationwiththeLumpiniYouth Centerandthe held atthePongsakViddyakornMeetingRoom,BangkokRehabilitationCenter,Hospital. including burns,nosebleeds,scaldingfromhotwaterandpoisonbitessnakesbees.Theeventwas skills suchashowtohelppeoplewhohavefainted,arechokingwell area asitisclosetothehospital.Participantsattendedalectureandhadopportunitypracticelifesaving taught byemergencyunitdoctorsandnurses.TheprojectwasinitiatedwithparticipantsfromtheSoiSoonvijai situations hasrisencontinuously.Consequently,wehaveorganizedtrainingcoursesinbasiclifesavingskills of charge. in frontoftheElderlyCitizenBuildingLumpiniPark.Theeventprovidesvariousbasicmedicalcheck-upsfree past 14yearsatLumpiniPark.BangkokHospitalbringsindoctorstosharesecretstakingcareofone’shealth promote healthcareandexerciseforthepeopleofBangkok.Thiseventhasbeenorganizedmonthly Culture, SportsandTourism Department oftheBangkokMetropolitanAdministrationhasorganizedthisprojectto Activities ų rst aid, - BangkokHospitalinassociationwiththeFootballAssociationofThailandorganizedWarm-UpProgram and - OntheoccasionofWorld HeartDay,BangkokHospital,oneoftheleadersinprovidingmedicalcareforheart therapists ofregionalfootballteamscanattendthetrainingcourseatsametime. Ratchasima, BangkokHospitalPhuketandHadYai sothattrainers, Program wasbroadcastedacrossthecountryviateleconferencetoBangkokHospitalPattaya, so thattheymayusethesetechniquestocarefortheirfootballplayersdecreaseup30%ofinjuries.The such aretrainers,assistantteamphysical Committee (F-MARC)sentMr.MarioBizzini,Ph.D.,PTtoThailandteachthoseinvolvedinthetrainingofathletes brought inFIFA toprovidewarm-uptechniques,preventionofinjuries.TheFIFA MedicalAssessmentandResearch bad thingsfortheheartandadviceontechniquesinpreventingtreatingdisease. Heart Emotion,aprogramtoinducehappinessforthegoodofheart;andDon’t,onreducing team ofphysicaltherapists;HealthyHeartDiet,aprogramdemonstratinghowtocookhealthyfood; Healthy HeartModel(4H)namely,Active,anexerciseprogramtostrengthentheheartledbya take careofone’sheartincludingtheheartsfamilymembers.Theactivitywasapro-activeoneusing the dangersthatareclosetothemandhowpreventdiseaseaswellappropriatelyseriously and waystolessentheseverityof“coronaryheartdisease”sothatThaipeoplearealertunderstand Plaza Ladprao.Theeventwasdesignedtoprovideknowledgeonhowchangebehaviorsdecreasetherisk patients, organized“HealthyHeartThailand”undertheconcept“OneWorld, OneHeart,Home”atCentral ų tness trainers,sportsscientists,teamnursesorphysicaltherapists ų tness trainersandphysical 35 A n n u a l R e p o r t 2 0 1 2 C o r p o r a t e S o c i a l R e s p o n s i b i l i t y A c t i v i t e s Activities of the Vejdusit Foundation Under the Royal Patronage of HRH Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra in 2012 1. 3rd Big Hat Big Give The Vejdusit Foundation in association with the Big Knit Company Limited donated 1,200 knitted hats to underprivileged children in remote areas in Thailand by presenting the donation to Her Royal Highness Princess Maha Chakri Sirindhorn.

2. 2012 Medical, Nursing and Public Health Research Scholarships A total of 5 scholarships were awarded equaling Baht 734,000. This is the 10th consecutive year of the scholarship program with a total of 57 scholarships equaling Baht 7.7 million awarded to date. C o r p a t e S c i l R s n b y A v

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3. Helping the Less Fortunate on Tour 2012 A project to help the less fortunate to have a better quality of life with regards to physical and mental health. A n u a l R e p o r t 2 0 1 The Tour provided doctors, nurses and staff to carry-out medical check-ups as well as distribute medicine, medical supplies and equipment and basic consumer goods to the underprivileged such as the following: (the Tour traveled every month)

Ļ Disadvantaged children at Banglamung Home for Boys Ļ Infants in the slums at Foundation for Slum Child Care Under the Royal Patronage of HRH Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra - Onnuch Garbage Site Community - Nongkaem Garbage Site Community

Ļ Underprivileged children at Mahamek Home for Boys C o r p a t e S c i l R s n b y A v

Ļ Underprivileged children affected by the Ŵooding of schools in the Bangpahan District, Ayudhaya Province at Wat 37 Bangplerng School, Wat Thangklang School, Wat Kaewta School and Wat Tarnlen School A n u a l R e p o r t 2 0 1

Ļ Underprivileged children at Border Police Patrol School in Baan Praektakrau, Prachuabkirikun Province Ļ Children with intellectual disabilities at Rajanukul Institute Under the Royal Patronage of HRH Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra 38 A n n u a l R e p o r t 2 0 1 2 G r e e n H e a l t h P r o j e c t Green Health 5. Environment 4. Food &Nutrition 3. MedicalHealthCare 2. MentalHealth 1. PhysicalHealth also takecare oftheenvironment. abstain andquitwastingresources. Intakingcareofone’shealth,onemust stroke andcancerareallrelatedtoabaddiet. 5 fataldiseasesinThailandarediabetes,highbloodpressure, heartattack, of stressasyourmentalhealthwillaffectbody. or regularexercise,willhelpmakeyourbodystrong. as follows: have cometogetherforGreenHealth. Group andPaoloHospitalGroup.Itisthe Hospital Group,SamitivejBNHHospital,Phyathai by 5hospitalgroupswithintheBangkokHospitalnetwork,namely, the projecttopromotingtotalwellnessinsociety.Theiscarriedout the Thaipeople,especiallytohelpsociety’sunderprivileged,andexpand the knowledgeinmedicineandpublichealthtotakecareof Bangkok DusitMedicalServicesPublicCompanyLimited.Theaimistouse Increase greenareassothat theenvironmentismorepleasing.Reduce, More importantthatdeliciousfoodisqualityforbetter health.The Get medicalcheck-upsyearlyataccreditedhospitals. Smile moreoften,calmlyfaceproblems,practiceclearing yourmind Exercising, whetheritbechoosingtowalkinsteadofusingtheelevator The conceptstotalwellness,whichareattheheartofthisproject, The BangkokHospitalGroupGreenHealthProjectisaCSRprojectofthe ų rst timeinThailandthat26hospitals Project into theschoolstorenovate 2. GreenHealth@School equipment. concentrator, 88walkers,singlecanesandtripodcanes,3bloodpressuremonitors,nursingbedsother of 101piecesequipmentweredonatedsuchas6wheelchairs,1stainlesssteelcommodewheelchair,oxygen donations topurchaseadditionalnewnursingequipment,thustotaling171piecesofequipment.Atotal as wellmonetarydonationsofBaht456,000.00from18benefactors.TheProjectusedpartthe longer needthemorhavepassedaway.Reusingnursingequipmentcanalsohelpsavetheenvironment. the projectalsoencouragesmakinggooduseofequipmentassomethemmaynotbeinpatientsno patients andpeoplewithdisabilitieswhoareinneed.Apartfromhelpingthoseneedofessentialnursingequipment, 1. GreenHealthCare&Share Main EventsoftheProjectin2012 training inpublichealthandorganizesbene Samutsongkram, Chonburi,Rayong,Trad, Prachaubkirikhan,Ayudhya, Nakronrachasima,SongklaandMaehongsorn. Group haveorganizedthisactivityfor48schoolsineveryregionincludingthefollowingprovinces:Bangkok,Samutprakarn, The projectdonatesthe“GoodHealthRoom”forchildrenandyouths.Ateamofpharmacistsnursesgo In 2012,theGreenHealthcare&ShareProjectreceived85piecesofnursingequipmentfrom19generousdonors A projectforsharingandaswellacenterdonationsofusednewnursingequipmenttogiveelderly http://www.facebook.com/GreenHealthbyBangkokHospitalGroup Website :www.greenhealthbangkokhospitalgroup.com Contact theGreenHealth Presently, BangkokHospitalGroup,SamitivejPhyathaiGroupandPaoloMemorial the BangkokHospital Group,SamitivejHospital Group, BNHHospital,PhyathaiHospital GroupandPaoloHospital Group. 1. Mr.PrasertPrasarttong-Osoth, M.D., CEO&President,alongwithexecutivesoftheBangkokHospital network,representing tel:1719 ų rst aidroomaswellprovidemedicineand ų cial activitiestoimpoverishedschoolsacrossthecountry. ų rst aidkits.Theteamalsoprovides 1 39 A n n u a l R e p o r t 2 0 1 2 G r e e n H e a l t h P r o j e c t 2 3 4

5 6 6.1

7 7.1 7.2

40

8 9 10 A n u a l R e p o r t 2 0 1 r e n H a l t h P o j c G

11 11.1 12

2. Brand Ambassadors of all 5 dimensions of the Green Health Project: Mr. Pongsakorn Chindawatana, M.D., Ms. Apissada Unsuphan, Ms. Pavita, Panyapool, Ms. Chayarnpat Suyakot and Ms. Suthirat Kaewwiset. 3. Inaugural launch of the Green Health Project on 30th July 2012 attended by Mr. Prasert Prasarttong-Osoth, M.D., CEO & President and celebrities, as well as donors in the Green Health Care & Share program. 4. Ms. Apiwan Piyasiranont donated 4 pieces of nursing equipment including bath bench, tripod cane, walker and gel positioner at the Green Health booth on TUŴPPSPG#BOHLPL)PTQJUBM 5. Wheelchairs delivered to monks who have suffered from a stroke or bone disease in Chiangmai Province. 6. Patients with paresis or physical disabilities in Chiangrai Province. 6.1 Wheelchairs delivered to patients in Chiangrai Province. 7. Mr. Pongsakorn Chindawatana, M.D. Brand Ambassador of the 4th dimension of wellness (Take care, prevent, know the disease) presented and demonstrated how to use the wheelchair to relatives of the patient at Bangkok Hospital. 7.1 Assistant Professor Ajjima Srethaputr, Mr. Pongsakorn Chindawatana, M.D. and (SFFO)FBMUITUBGGQSFTFOUFEXIFFMDIBJSTUPSFQSFTFOUBUJWFTPG)VBJ,IXBOH%JTUSJDU0GųDFBOEXJGFPGQBSFTJTQBUJFOUGSPN$IVNDIPO#VFOH 1SBSBN #BOHLPLBUUIF(SFFO)FBMUICPPUIPOTUŴPPSPG#BOHLPL)PTQJUBM7.2 Paresis patient who received the wheelchair donation, with his wife, at Chumchon Bueng Praram 9, Bangkok. 8. Assistant Professor Ajjima Srethaputr presented the oxygen concentrator to the son of a patient who is in persistent vegetative state from shock at Phutthamonthon Sai 1, Bangkok. 9. Volunteers of the Green Health Care & Share Project presented 85 pieces of new nursing equipment to Parn Hospital, Muang Parn District, Chiangrai Province. 10. The Pringpuangkaew Family presented the Green Health Care & Share Project with 2 wheelchairs. 11. Presented an oxygen concentrator to Mrs. Korng Srichompu, a cancer patient, in Nong Khai Province. 11.1 An oxygen concentrator is delivered to a cancer patient in Nong Khai Province. 12. Ms. Thanjira Thanaworapongprapa donated a patient bed to Mr. Sopon Nilsamak, a paralyzed patient, in Chaiyaphum Province. 13. Bangkok Hospitalexplainedhowto use themedicineandmedicalsuppliestostaffatWatKaewtaSchool, Ayudhaya Province Samutsongkram Province Wat KloongKoenSchool,Samutsongkram Province Wat BangChalongnorkSchool,Samutprakarn Province by providingtrainingon5-dimensions ofhealthandtreeplantingworkshop Health Youth Ambassadors”eventwithparticipationfrom 100studentsfrom20schoolsintheThonburiareaordertodevelop m the “GoodHealthRoom”toWatBangPlerngandThangKlangSchools inAyudhaya Province Hospital 1presentedthe“GoodHealthRoom”toCenterforDevelopment ofPre-schoolers,MakkasanRailTracks Room sign. 15. 14 presented the“Good HealthRoom”toBaanPongsai School,SaraburiProvince from BangkokHospital selectedandpresentedmedicine andmedicalsuppliestoBaan PongsaiSchool,SaraburiProvince PG#BOHLPL)PTQJUBMSFOPWBUFEUIFųSTUBJESPPN GPSFYBNQMF D . SamitivejHospitalGroupandBNHpresentedthe“GoodHealth Room”toNongpluangPittayaSchool,NakornratchasimaPro StudentsrepresentingtheMaptaputPanpittayakarnSchool,RayongProvince, acceptedthedonationofmedicinecupboardandGood BangkokHospitalHuaHinpresentedthe“GoodHealthRoom”toBorder PolicePatrolSchoolinBaanPraektakrau,Prachuabkirikun 15.1 BangkokHospitalRayongpresentedthe“GoodHealthRoom”toMaptaput PanpittayakarnSchool,RayongProvince 22. BangkokHospitalpresentedthe“Good HealthRoom”toWatKaewtaSchool,Ayudhaya Province 15.1 21 18 13 23 21. 20. 1BPMP.FNPSJBM)PTQJUBM(SPVQSFOPWBUFEUIFųSTBJESPPNBU#B PaoloMemorialHospitalGrouppainted andrenovatedthemulti-purposebuildingat IBOHJOHUIFCFETIFFUT BU#BBO1POHTBJ4DIPPM 4BSBCVSJ1SPWJO 19. 1BPMP.FNPSJBM)PTQJUBM(SPVQSFOPWBUFEUIFųSTUBJESPPNBU 23.1 16 14 22 19 18. PhyathaiHospital3organizedthe“Green 17. PhyathaiHospital2presented 23.2 BO%PO$IBO4DIPPM  DF 23. BangkokHospital 22.1 23.1 Representatives Nursesfrom 16. Pharmacists odel youths Phyathai Province Health vince 23.2 22.1 20 17 15 41 A n n u a l R e p o r t 2 0 1 2 G r e e n H e a l t h P r o j e c t 42 A n n u a l R e p o r t 2 0 1 2 R e s e a r c h & D e v e l o p m e n t Research Mucositis DuringChemo-RadiotherapyinHeadandNeck CanceratWattanosothHospital 3.StudyofDevelopmentandEffectiveness ofClinicalPracticeGuidelinesforMinimizationSevereOral in AcuteStrokePatients 2.Theeffect ofStickExerciseinCombinationwithBobathTechnique inthePreventionofShoulderSubluxation Experience 1.RetrospectiveStudyEffectiveness In review boardandethiccommitteewillcommencein2013.Thoseprojectsareasfollows: Asfortheother6newresearch projects,theyareunderreviewandapprovalbytheHospital’sInstitution 2.ThaiTranslation ofMigraineDisabilityAssessment(MIDAS)andTest-Retest ReliabilityStudyofTheThaiversions Hospital 1.AQualitativeStudyoftheEffectivenessGroupSupportActivitiesinPatientandfamilyatWatthanosoth commenced, namely: projects, 2havebeenapprovedbytheHospital’sInstitutionreviewboardandethiccommitteealready In2012,therewere8newresearchprojectsinitiatedbymedicalpersonnelattheHospital.Ofthose Check-up ProgramatBangkokHospitalMedicalCenter 4.PrevalenceandRiskFactors ofAsymptomaticCarotidArteryDiseaseinThaiPopulationwhoAttendAnnual 3.RetrospectiveStudyofHospitalizedPatientswithIn 2.RetrospectiveStudyofHospitalizedPatientswithDengueInfectionDuringJanuary2010–December Patient inCriticalCareUnit,BangkokHospitalMedicalGroup 1.ActiveSurveillanceCulturestoScreenforMethicillin-ResistantStaphylococcusAureus(MRSA)inReferral for furtherpublicationasfollows: In 2012,therewere4researchprojectsthathavebeencompletedandareintheprocessofanalysisreporting will leadtodevelopmentofqualityoref promote andsupportresearchthatmeetinternationalstandardstobringaboutknowledgeorinnovation,which IncarryingouttheBangkokHospitalMedical Center’smissionistoprovidequalitymedicalservices,westrive & Development ų ciency ofmedicalservicesandimprovethequalitylifeourpatients. Ŵ uenza VaccinationinHealthcareworkers:TheBangkokMedicalCenter Ŵ uenza inAdultDuringJanuary2010–December syndrome peppermint-oil capsulesinThaiirritablebowel to assesstheef 3.Arandomized,prospectivedoubleblindstudy Venous ThromboembolismAfterHipFractureSurgery 2.RivaroxabanSafetyPro neonate attheBangkokhospitalmedicalcenter 1.Screeningforacriticalcongenitalheartdiseasein committee asfollows: from theHospital’sInstitutionreviewboardandethic with otherresearchdepartmentsandreceivedapproval Center hasconductedclinicalresearchinconjunction Additionally,in2012,theBangkokHospitalMedical 6.HeadacheRegistryProgram for Dietitian 5.CreationofSimpli Checkup PatientsatBangkokMedicalCenter 4.PrevalenceandRiskFactorsofPrediabetesin ų cacy andsafetyofEnteric-coated ų ed NutritionScreeningTool ų le intheProphylaxisof research institutionsbothdomesticandinternational. continue toexpandresearchcooperationwithleading TheBangkokHospitalMedicalCenterstrivesto injuries anddeathfrombraindamage. to promotethewearingofsafetyhelmetsprevent The knowledgegainedfromthisresearchcanbeused was completedandpublishedinDecember2012. Passengers inBangkoktowardswearingSafetyHelmets” “Survey ofAttitudeandBehaviorMotorcyclists Research Center.The and surveyresearchcooperationfromtheABACPoll health researchtothecommunitythroughacademic In2012,BangkokHealthResearchCenterexpanded Center, BangkokHospitalon1stNovember2011”. department underthename“BangkokHealthResearch and establishedanewresearchdevelopment Dusit MedicalServicesnetwork,wehavereorganized to supportresearchinallareaswithintheBangkok Bangkok HospitalMedicalCenterandexpandservices Inordertoincrease researchcapabilitiesatthe ų rst jointresearchproject, 43 A n n u a l R e p o r t 2 0 1 2 R e s e a r c h & D e v e l o p m e n t 44 A n n u a l R e p o r t 2 0 1 2 H e a l t h c a r e I n d u s t r y O u t l o o k a n d C o m p e t i t i o n Healthcare IndustryOutlook 4PVSDF0GųDFPGUIF/BUJPOBM&DPOPNJDBOE4PDJBM%FWFMPQNFOU# 1. DomesticPatients asfollows: the creationofASEANEconomicCommunity(AEC)in2015.Theprivatehospitalmarketcanbedividedinto2groups private hospitalinupcountry,thesectorlongtermstillhaspotentialtogrowespeciallyafter and alsofrompeoplebecomingmorehealthconscions.Asaresultofthesedriverstogetherwiththegrowth number ofpatientswhichdrivenbythegrowingagingpopulation,increaseinmedicaltourism 2011 withtheCAGRduring2002-2011of6.8%perannum. Growth ofhealthcareexpenditurecomparedtoGDPsince2002-2011 than GDPgrowth. annum comparedtotheGDPgrowthrateof4.0%duringsameperiod.Therefore,healthexpendituregrewfaster million. From2002to2011,thecompoundannualgrowthrate(CAGR)ofhealthcareexpenditurewas5.6%per In 2012,theprivatehospitalsectorhascontinuouslygrownasaresultofanincreaseinincomepercapitaand Statistics alsoshowthecontinuedgrowthofdomestic inpatient andoutpatientsfrom2.6%in2002to7.3% Statistics showthatthegrowthofhealthcareexpenditureinThailand2011isaround3.1%orBaht168,713 Year CAGR (’02–‘11) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 au MlinBh)GrowthRate(%) Value (MillionBaht) 4,599,655 4,596,112 4,263,139 4,364,833 4,259,026 4,054,504 3,858,019 3,688,189 3,468,166 3,237,042 GDP -2.3 4.0 0.1 7.8 2.5 5.0 5.1 4.6 6.3 7.1 5.3 PBSE au MlinBh)GrowthRate(%) Value (MillionBaht) and Competition 168,713 163,630 158,499 150,192 143,280 138,970 130,213 120,577 111,784 103,705 Health expenditure 5.6 3.1 3.2 5.5 4.8 3.1 6.7 8.0 7.9 7.8 3.1 4PDJBM%FWFMPQNFOU#PBSE 4PVSDF0GųDFPGUIF1FSNBOFOU4FDSFUBSZPGUIF.JOJTUSZPG1VC The numberofIn-PatientsandOut-PatientsinThailandsince2002to2011 with anunhealthylifestylewhichmaycauseaseriousillness andchronicdisease. city area,theurbanexpansionwillbeoneofkeydrivers forhealthcareservices.Moreover,theurbanismcomes increase from31.1%in2001to38.0%2020.Asthemajority ofthecoverageareasprivatehospitalsarein 3. UrbanExpansion demographics willincreasedemandforthehealthcare services. people aremorepronetodisease,syndrome,andsicknessthanyoungerpeople,thissigni estimates thattheportionsofpeopleolderthan60willgrowfrom9.4%in2000to25.1%2030.Aselderly is olderthan60yearsofagehaverisen.TheOf growth, agingpopulationgrowthhasbeenonanincreasetrend.Theaverageageandtheratioofthat 2. ChangesinDemographic of households.TheratiohealthcareexpendituretoGDPincreasedfrom5.8%in20027.1%2011. adjustment in2012shouldenablepeopletohavemorepurchasingpowerandincreasethehealthcareexpenditure 1. IncreasedIncomepercapita factors areasfollow: The NationalStatisticsOf Presently, asaresultofbettereducation,accesstohealthcareservicesanddownwardtrendpopulation The government’spoliciestoincreaseincomepercapitathroughtheminimumwageandforcivilservants Therefore, itisclearthatinpast10yearsthedemandforhealthserviceshascontinuouslygrown.Thedriving Year 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 ubro nPtet NumberofOut-Patients Number ofIn-Patients 16,489,248 11,223,834 10,307,684 9,497,993 8,911,696 8,092,741 7,749,734 6,772,814 6,220,845 5,564,656 ų ce forecaststhattheratioofpopulationresidingin Bangkok andVicinityareawill ų ce oftheNationalEconomicandSocialDevelopmentBoard(NESB) 172,416,262 164,766,694 152,428,645 140,078,456 130,741,335 118,422,898 106,251,652 100,058,309 103,281,854 99,325,944 MJD)FBMUIBOEUIF0GųDFPGUIF/BUJPOBM&DPOPNJDBOE oa ubro ainsGrowthRate(%) Total NumberofPatients 188,905,510 175,990,528 162,736,329 149,576,449 139,653,031 126,515,639 114,001,386 106,831,123 109,502,699 104,890,600 ų cant changeinthe

(2.4) 10.4 11.0 6.7 4.4 2.6 7.3 8.1 8.8 7.1 45 A n n u a l R e p o r t 2 0 1 2 H e a l t h c a r e I n d u s t r y O u t l o o k a n d C o m p e t i t i o n 46 A n n u a l R e p o r t 2 0 1 2 H e a l t h c a r e I n d u s t r y O u t l o o k a n d C o m p e t i t i o n 4PVSDF#VSFBVPG4BOBUPSJVNBOE"SUPG)FBMJOH %FQBSUNFOUPG 2. InternationalpatientswhocometoThailandfor healthcareservices(MedicalTourism) to 2,240,000personsin2011withtheCAGRof13.0%perannum.Thesigni increase inthenumberofforeignerswhocametoThailandforhealthcareservicesfrom1,373,807persons2007 of healthcareservices. hospitals canachievetheinternationalstandardaccreditationswhichstrengthenforeigners’con through theeconomyofscale,hospitalsthencanprovideservicesatareasonableprice.Moreover,manyprivate hospitals inThailandoperatebusinessunderthenetworkmodelwhichallowtocontroltheircost quali of Asia.Thailandhasthecompetitiveadvantagesoverothercountriesintermqualitycare,international trend eachyear.Thisispartlyduetothegovernment’spoliciessupportThailandinbecomingMedicalHub total of32,838 bedsin2011. The numberofbedshospitalsacrossthecountryandprivateduring2003-2010 the referralsystemthathelpsprovidingabetterqualityofhealthcareservicesandresourcesmanagementef complexity diseaseswithmodernmedicalequipments.Thesethreestandardofcarescanbeconnectedthrough primary carecenters.Thetertiaryisforthemedicalcentersthatprovidecompleteservices for provide ahigherlevelofservicestobothinpatientsandoutpatientsmorecomplexitytreatment than general medicalservicessuchasclinicsorsmallcenters.Thesecondarycareincludescenters that care intoprimarycare,secondaryandtertiarycare.Theisforthemedicalcentersthatprovide Market OutlookandCompetition 121,658 million. international patientswillbeapproximately2,530,000personsandincreaserevenuetoBaht in 2011. patients contributeshigherhealthcareservice’srevenuefromBaht41,000millionin2007to97,874 According tothedatafromDepartmentofHealthServiceSupport,MinistryPublicHealth,thereisan Since 2002,therehavebeennumerousforeignerscomingtothecountryforhealthcareserviceswithupward According tothe datafromtheBureauof SanatoriumandArtofHealing, therewere321private hospitalswith In 2010,themarketshareofprivatebedstototalnumberinThailandisonly24.5%. Healthcare servicesinThailandarecomprisedofpublicandprivatesectorcanbedividedthelevelmedical For 2012,theOf Year 2010 2009 2008 2007 2006 2005 2004 2003 ų ed clinicalpersonnel,thestateofartmedicalequipmentandtechnology,valueformoney.Asprivate ų oa ubro esi hiadTotal numberofprivatebeds Total numberofbedsinThailand ce ofthePermanentSecretaryMinistryPublicHealthestimatesthatnumber 134,105 117,568 125,866 139,715 134,763 132,920 133,245 134,622 )FBMUI4FSWJDF4VQQPSU ų cant growthinnumberofinternational 32,872 33,405 36,004 35,792 35,806 35,506 35,267 34,863 ų dence inthequality ų ciency. Presently, private hospitals in Thailand mainly compete in term of the network hospitals which enhance effective management in customer bases, service area expansion, economy of scale, resource sharing, and referral system within the network hospital. Additionally, in order to meet the patient rising demand, the private hospitals target to compete in service offering, qualiųed clinical personnel, advance medical technology medical equipment, and setting speciality medical centers. Market Trend There is an ongoing expansion trend of economic growth and urbanization to upcountry area over the years. According to the data from the National Statistic Ofųce, the average household income and the average personnel expenditure in upcountry area increase at faster price than those in Bangkok and vicinity area. During 2007-2011, the CAGR of monthly income per capita in Bangkok and vicinity area, and upcountry were 4.4% and 6.4% respectively. This rapid growth is mainly due to the higher prices of agricultural products and the expansion of industrial factories to rural area. Therefore, there is a potential growth in economic and social in upcountry provinces. Average Monthly Income per Household by Region During 2007 - 2011 Region 2007 2009 2011 CAGR Entire country 18,660 20,904 23,236 5.6

Central Region 35,007 37,732 41,631 4.4 Eastern Region 18,932 20,960 20,822 2.4 H e a l t h c r I n d u s y O o k C m p i Northern Region 13,568 15,727 17,350 6.3 47 Northeastern Region 12,995 15,358 18,217 8.8 Southern Region 19,716 22,926 27,326 8.5 4PVSDF0GųDFPGUIF/BUJPOBM&DPOPNJDBOE4PDJBM%FWFMPQNFOU#PBSE 1SJNF.JOJTUFS0GųDF Beside the signiųcant growth in economic and social, the upcountry provinces are a great opportunity for private hospitals as there have a high demand for healthcare services with less competition. The target areas are the location that has potential to attract both Thai and international patients with the large cash Ŵow in the economy and has complete facilities in accommodation, necessary infrastructure and transportation. The introduction of the ASEAN Economic Community (AEC) in 2015 also holds a great opportunity for healthcare A n u a l R e p o r t 2 0 1 sector in Thailand as a leader of medical tourist in Asia. With the geographical advantage right at the center of ASEAN, the healthcare services of Thailand can take advantage of having larger customer bases especially from elderly population around ASEAN and expatriates who come to work in the region. AEC will also enable free Ŵow investment from foreign investors as well as the free Ŵow of healthcare services. Therefore, this is the great opportunity for private hospitals to expand their business to other ASEAN countries and create cross border medical services. Moreover, the AEC blueprint allows free Ŵows of skilled labor including doctors, nurses and dentists that might help the shortage of clinical staffs in Thailand. For domestic patients, the establishment of AEC will promote domestic economic growth reŴecting higher purchasing power. People can access better healthcare services which ųnally increase hospital revenue. For the 2013, the trend still targets on chain hospital especially in upcountry areas to strengthen the network and enhance the potential to compete with other hospital operators. Besides, the hospitals emphasize on clinical staffs as limited resources. However, the essential of business operation are continuously maintaining the healthcare standard in term of quality of care, qualiųed clinical personnel, modern medical equipment and continuous business development. 48 A n n u a l R e p o r t 2 0 1 2 R i s k F a c t o r s Risk affect theCompany’soperations andbusinessopportunities. to lawsandregulationsorissuance ofnewregulationsorpoliciesrelatedtothe Company’sbusinesswillnot by thePatientProtectionCommittee. Therefore,theCompanymaynotbeableto guaranteethatfuturechanges the Company)areresponsible forcontributingtothefundaccordingrules,procedures andratedetermined of settingupapatientprotectionfundtopayfordamages topatients,wherebythehealthcareclinics(including having toprovewrongdoing,mayaffecthealthcareproviders includingtheCompany.Thereisalsoconsideration received damagesfromhealthcareserviceswiththegoal tocompensatethepatientsinatimelymannerwithout as wellthedeliberationofdraftPatientProtection Act,whichprotectspersonswhohavebeenwrongedor that arelikelytobestricter,mayimpacttheCompany’s operations.Theenforcementoflawsornewregulations, clinics, companiesandotherrelatedlaws. stipulated bythelawgoverninghealthclinics.Inaddition, theCompanymustcomplywithlawsgoverninghealth agencies. Furthermore,theCompanymusthavealicensetooperatehealthcarebusinessandclinics as 2.1 RiskfromfuturechangesinstandardsorregulationsgoverningtheCompany 2. Riskofprivatehospitalbusinessandoperations had anegativeimpactonthegrowthofGDPasexportswereaffectedbyhaltinproduction consumption stimulusandcapitalin both publicandprivatesectorsasaresultofthegovernment’srehabilitationmeasuresafter This growthismainlyfromtherecoveryofhouseholdconsumptionandsigni global economicslowdown.TheWorld BankestimatedthatThailand’sGDPgrowthin2012wouldbe4.7%. economy suchasthe At thesametime,Thailand’seconomydependsinpartonworldeconomy.Ifproblems origin ofourpatientsandthestateglobaleconomywillimpactrevenuenumberforeignpatients. health careservicesandrevenuefortheCompany.Therefore,volatilityofeconomycountry of greater numberofforeignerscomingintothecountrytoreceivemedicalservices,thus,increasingdemand for the government’spolicytosupportThailandinbecomingMedicalHubofAsiahasresultedacontinued investments, willcontinuetogrowfrom2012,asaresultoftherapidincreaseinoffshoreinvestments.Furthermore, Exports in2013areexpectedtogrowby5.5%compared3.6%2012.Domesticdemand,especially is expectedtofullyrecoverfromthe second halfoftheyear. of theyear,aswelldecreaseindemandfromEuropeanUnion,ChinaandASEANcountries costs, theCompanymaybemoreaffectedthanotherprivatehospitalsintimesofeconomicslowdown. and BangkokHospitalPhuket,providetreatmentofcomplexdiseasesbytertiarycareexperts,whichhavehigher purchasing power,and exports asaresultoftheweakenedworldeconomy,whichwillinturnimpactincomepercapitaandlessen the USeconomy,persist,itmaycauseThailand’seconomytoweaken.Thiscanbeseenfromdecreased Any changesintheinterpretationofcurrentregulations orenforcementoflawsnewregulationspolicies The CompanyoperatesunderthesupervisionofMinistryPublicHealthandotherrelatedgovernment Even thoughThailand’seconomyin2012hasrecoveredfromthe Risksfromeconomicvolatility 1. The World BankestimatesthatThailand’seconomywillgrowabout5%.Thisisbecausetheindustrialsector As BangkokHospitalandsomeofthenetworkhospitals,namely,SamitivejHospital,Pattaya Factors ų nancial volatilityoftheEuro ų nally affectingtheCompany’srevenue. Ŵ ows, especiallycontinueddirectoffshoreinvestments.However,netexports Ŵ ooding andtherecovery,althoughsomewhatslow,ofworldeconomy. ; one, especiallyinGreeceandSpain,the Ŵ ooding in2011,itwasstillaffectedbythe ų cant increaseininvestmentsby Ŵ uctuation of Ŵ ų ooding, rst half standards. as improvingquality anddeterminingindicators thatensurethe qualityofservicealwaysmeets international managing patients’expectations, reportingproceduresand the screeningofphysicians, aswellpatients’rights.TheCompanygivesimportance toprovidinginformation, which putstheCompanyatriskofbeingsuedformedical servicesprovided. against healthcareserviceproviders.Thislawmayaffect healthcareserviceprovidersandmedicalpersonnel, Proceedings forConsumerCasesB.E.2551(2008),which moreeasilyenablesconsumersandpatientsto 2.4 Riskoflawsuits the privatehospitalbusiness.Therefore,Company currentlyhasnotbeensigni the Companyhassetmeasuresindeterminingcompensation thatisfairwhencomparedtootheroperatorsin that aimstoenhancemedicalknowledgeinallareas as wellstate-of-the-artmedicaltechnology.Moreover, education andresearchtomedicalpersonnelinorder improvespecializedskills.We areaknowledgeorganization and attractingskilledmedicalpersonnel,whichwillaffecttheCompany’scosts. medical personneltomeetdemand.TheCompanyhashadcompetewithotherhospitaloperatorsinretaining reliance isplaceduponthepublicsectortodevelopmedicalpersonnelandtherehavenotbeensuf with comparablepersonnelmayhavenegativeeffectsontheCompany. and technicians.Therefore,losingmedicalpersonnelorcrucialexecutives,notbeingabletoreplacethem 2.3 Riskinlosingmedicalpersonnelorcrucialexecutives Company’s medicalservices,whichwillalsoaffecttheoperatingcosts. and improvingtheef investment ininformationtechnologytosupportexpeditionofmedicalservices.Expandingthehospitalnetwork Company hasmadesubstantialinvestmentsinstate-of-the-arttechnologyandmedicalequipment,aswell as on theCompany.Therefore,inordertomaintaincompetitiveedgeanddifferentiateservicesprovided, the and theircompetitiveedge.Thisisexpectedtocontinueinthenearmediumtermmayhavesomeeffects recent years,privatehospitalsandpublichaveincreasedtheirinvestmentstoimproveef some ofourpatients.Thus,theCompanywillhavegreatercompetitionfromthesehospitals.Furthermore,in such asopeningafter-hoursclinics,andprivatehospitalsmanagedbylargepublichospitals,whichmaytakeaway equipment inordertoexpandtheircustomerbase.Publichospitalshavealsoexpandedmedicalservicesoffered hospitals, whichhaveimprovedanddevelopedmedicalservices,aswellacquiredstate-of-the-art Apart fromcompetitionwithhospitalsatthesamelevel,Companymustalsocompetemidlevelprivate 2.2 Riskfromcompetition may helptolessentheeffectsofchangeslawsregardinghealthandenvironment. and environmentalconservation,aswellmonitorthevariousrisks,especiallyriskinprovidingmedicalcare.This Committee beestablishedtomonitorthequalityofpatientcareandensurethatitmeetsstandardssafety such asJCI(JointCommissionInternational)andHA(HospitalAccreditation).Compliancewithrequiresthata Nevertheless, management recognizes theimportanceofcontrollingandinspecting qualityofmedicalservices, Presently, peoplearemoreawareofpatients’rights, especiallywiththeissuanceofActonCourt However, theBangkokHospitalnetworkisalargeoneandhascontinuedtoprovide Presently, thehospitalbusinessinThailandisfacedwithproblemoflackmedicalpersonnel.Great The privatehospitalbusinessmustdependonskilledmedicalpersonnelsuchasphysicians,nurses,pharmacists The privatehospitalbusinessishighlycompetitiveandlikelytobeevenmoreinthefuture. However, theCompanyandhospitalswithinnetworksareincompliancewithvariousstandardsofquality ų ciency inpatienttransferaswellexpansionintomoreprovinceswithhelpsupportthe ų nding solutionswhenacomplaint isreceived,aswell ų cantly affectedbythisrisk. ų nancial supportfor ų ciency ofservice ų ų le suit cient 49 A n n u a l R e p o r t 2 0 1 2 R i s k F a c t o r s 50 A n n u a l R e p o r t 2 0 1 2 R i s k F a c t o r s However, theCompanyhasfollowingpoliciesinreducing suchrisk: before chargingfeesandexpenses,thereisariskthat we maynotbeabletoreceivepaymentforsuchservices. Receiving payment isoneofthe 3.1 Riskinreceivingpaymentofmedicalfees 3. FinancialRisks the returnasexpectedandmayaffect investments oroperationsthatarehigherthanestimated.ThesefactorsmaypreventtheCompanyfromreceiving business orthepoliticalsituationandeconomyofcountry,foreigncurrencyexchangevolatilitycost of such asthelaws,regulationsorpoliciesofgovernmentsforeigncountrieswhichgovernCompany’s has notyetstartedoperations.TherearefactorsthatmaynegativelyaffecttheCompany’sforeigninvestments, investment inPhnomPenhMedicalServicesCo.,Ltd.andBDMSInternationalLtd.,which Services Co.,Ltd.,whichmanagesRoyalRattanakHospital,equalto80.0%and70.0%,respectively,100% Pisith Co.,Ltd.,whichmanagestheRoyalAngkorInternationalHospital,andsharesheldinRattanakMedical or 2.1%oftheCompany’stotalassets.Theforeigninvestments,includingsharesheldinAngkor external parties)asof31December2012intheamountUSD47.5millionorapproximatelyBaht1,444 TheCompanyhasmadeinvestments(capital,loanstosubsidiariesandguaranteeofwith 2.6 Riskfromforeigninvestments particular groupofforeignpatients. the Companyhasexpandedforeignclientbasetocoveradditionalcountriesdecreasedependenceon any the countryinordertoexpanddomesticclientbaseandlowerdependenceonforeignclients.Inaddition, However,theCompany hasexpandedthenetworktocovermoreareasinBangkokandvariousregions the Company’sbusinessopportunities. countries inmedicaltourism,foreignpatientsmaynotcometoThailandforservicesandthisaffect against othercurrencies,thenegativeimageofThailandineyesforeigners,increasedcompetitionfrom situation inThailand,otherfactorsaffectingthetourismindustry,signi IfthereisasituationthataffectsthedecisiontoreceivemedicalservicesinThailand,suchaspolitical private hospitaloperators. from foreignpatientsishigh,there medical costswhencomparedwithothercountries,thetourismindustryandpoliticalstability.Asrevenue patrons choosestheCompany’sservicesbecauseofhighstandardandqualitymedicalservices,lower million in2012or26%and28%oftheCompany’srevenue20112012,respectively.Thisgroup from medicalservices.TherevenueforeignpatientsequaledBaht9,863millionin2011and12,267 governments oragencies,employeesofforeigncompanies,isanimportantparttheCompany’srevenue persons travellingtoThailandforpleasureorspeci Medicalservicesrevenuefromforeignpatients,whichincludespersonslivingorworkinginThailand, 2.5 Riskofrelianceonforeignpatients burdenofone-timepaymentattheendtreatment. theexpensesincurred duringthecourseoftreatmentandencourages paymentalongthewaytolessen 2. TheCompanyalsohasthe policytonotifythepartyresponsibleforpayment ofmedicalexpenses services sothatthepatientwillbeawareofbudgetand makepaymentpriortotreatment. non-emergencyprocedures,theCompany hasthepolicytoassessexpensebeforeprovidingmedical 1. Whenprovidingservicestopatientswhoarepersonally responsiblefortheexpense,incaseof ų nancial risksthattheCompanyfaces,is,whenproviding medicalcare ų erce competitioninprovidingservicestothisgroupofpatientsamong ų nancial statusandoperationsoftheCompany. ų cally toreceivemedicalcare,aswellstaffofforeign ų cant appreciationoftheThaiBaht domestic andforeignpatientsinordertoreducethisrisk. factor thatisoutoftheCompany’scontrol.Inthiscase,Companyhastriedtomaintainasuitableratio of to thedollar.TheCompanythusfacesriskfromvolatilityofforeigncurrencyexchange,whichisanexternal Company’s revenue.In2012,theThaiBahtappreciatedcomparedtoUSdollar,between30.3 31.9 competitive pricingcomparedtohealthcareprovidersinothercountries,isanotherfactorthatmayaffect the Furthermore,thevolatilityofforeigncurrency againsttheThaiBaht,whichisadeterminingfactorinsetting may beimpactedbytheeconomyofvariouscountriesoriginforeignpatients. number oflocalpatients.Thus,TheCompany’sbusiness, who visithospitalswithintheCompany’snetworkinsamewaythatdomesticeconomyimpacts the the economicstatusofcountryoriginforeignpatientshasanimpactonnumberforeigners PartoftheCompany’srevenuecomesfromservices providedtoforeignerswhotravelThailand.Therefore, 3.3 Effectsofglobaleconomyandforeigncurrencyexchangevolatility manage interestraterisk,whichincludesenteringintoswapsaccordingtothemarketsituation. of interestratesmayhavesomeimpactonthecostcapital.However,asCompanyhaspolicyto 8,158 millionfromatotalofBaht19,910or41.0% Asof31stDecember2012,theCompanyhas 3.2 Riskfrominterestratevolatility ų operations. TheCommitteemeetsregularlytoreviewanddeterminemeasuresmanagetherisk,aswell TheCompanyhassetuptheDebtorManagementCommitteecomprisedofmanagementfrom nd appropriatesolutionsfortheCompanyandpatientswhenthereisdefaultofpayment. reviewingtherelationshiptolessenriskofnon-payment. serviceswithcautionbyanalyzingthecounterparty’scredithistoryand 3. Forpaymentbycounterparties,theCompanyalsohasapolicytoprovidecreditforofmedical ų nancial liabilitiesatthe ų nancial status,pro ų nancial liabilities.Therefore,thevolatility Ŵ ų oating rateintheamountofBaht nancial status,aswellregularly ų ts andbusinessopportunities ų nance and 51 A n n u a l R e p o r t 2 0 1 2 R i s k F a c t o r s 52 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t Shareholding Structure executive of the AuditCommittee,Nomination andRemunerationCommittee,theExecutive Committeeandthetopfour 2.2 ManagementStructure of theCompany. Note :StaffPhysiciansrefertophysicianswhowork40hoursor moreaweekfortheCompanybutarenotconsideredemployees 2.1 Personnel 2. Management Source :TheThailandSecuritiesDepositoryCompanyLimited(TSD) 1. ShareholdingStructure are asfollows: shareholding structure.Aftersaidacquisitionandsale,thethreeshareholdersaforementionedheldBGHasfollows: shareholders numbers1,3and4theCompanyinformedStockExchangeofThailandchange in 10 9 8 7 6 5 4 3 2 1 As of31stDecember2012, the managementstructureofCompanyiscomprised oftheBoardDirectors, As of31December2012,theCompanyhad3,237employeesand1,022physicians,detailsasfollows: The toptenmajorshareholdersoftheCompanyonclosingregister29March2012 hrhle ubr4 equalto8.4 equalto0.02 equalto19.1 - Shareholdernumber4 - Shareholdernumber3 - Shareholdernumber1 As of17thOctober2012,theCompanywasinformedacquisitionandsalesecuritiesBGHby Physicians Total employees Employees Nurses Mr. ChuladejYossundharakul, M.D.andspouse CREDIT SUISSEAG,SINGAPOREBRANCH Mr. ChirotchanaSucharto,M.D.andspouse DEUTSCHE BANKAGSINGAPORE(DCS)A/CCLIENT Miss. PoramaphornPrasarttong-Osoth,M.D. The ViriyahInsurancePublicCompanyLimited Bangkok AirwaysCompanyLimitedandHolding Mr. SatitViddyakornandspouse Mr. WichaiThongtangandspouse Mr. PrasertPrasarttong-Osoth,M.D.andspouse Type ų cers, detailsasfollows:

Staff PhysiciansandEmployees 130,580,194 shares 295,372,734 shares Name Total 294,281 shares 2,743 1,817

379 926 Consulting PhysiciansandPart-timeEmployees and Management 494 643 333 161 Total Shares 122,681,981 918,537,375 121,938,769 184,998,269 196,704,984 27,565,795 31,337,598 39,408,009 44,694,900 49,662,607 99,544,463 % oftotalshares outstanding 11.97% 12.73% 59.43% 1.78% 2.03% 2.55% 2.89% 3.21% 6.44% 7.89% 7.94% 3,237 Total 1,022 2,150 1,087 .M.Sio aaa Committee Member CommitteeMember Chairman oftheAuditCommittee 3. Mr.SripopSarasas 2. Dr.Somchai Sujjapongse 1. Prof.(Emeritus)SantasiriSornmani are asfollows: to becomprisedofthreeindependent directorswithatermofthreeyears.Themembers oftheAuditCommittee Audit Committee 7. Reportcon 6. Protecttheinterestsofshareholdersandpractice standardizedandtransparentdisclosureofinformation. 5. Setef 4. Monitortheoperationalresultsofmanagementand Companyinordertoensureconsistencywithestablished 3. Determinepoliciesandensurethatmanagementactsinaccordancewiththosepolicies,aswellapprovebusiness 2. ComplywiththeprovisionsandgoodpracticesoflistedcompanydirectorsStockExchangeThailand. 1. Performdutiesusingtheirknowledgeandexpertiseforthebene Duties andResponsibilitiesoftheBoardDirectors and theShareholders’Meetingsforsuccessgoodcorporategovernance. Directors aswellcoordinateandmonitortoensurecompliancewiththeresolutionsofBoardDirectors’ Market SupervisoryBoard.Furthermore,theCompanySecretaryshallful to actinaccordancewiththelawregardssecuritiesandexchangenoti Company Secretary Duangnet, M.D. M.D., Mr.PongsakViddyakorn,ChuladejYossundharakul, M.D.,Mr.ChirotchanaSuchartp,M.D. andMr.Chatree 3 r rppSrss IndependentDirector Director Director IndependentDirector IndependentDirector Authorized Directors Director 15. Mr.ThongchaiJira-alongkorn Director Director 14. Miss.KananujLekvichit 13. Mr.SripopSarasas 12. Dr.SomchaiSujjapongse 11. Mr.ChawalitSetthmethikul Director 2ndViceChairman Director IndependentDirector 10. Mr.ChatreeDuangnet,M.D. 9. Mr.ThavatvongThanasumitra 8. Prof.(Emeritus)SantasiriSornmani,M.D. CEO&President 7. Mr.PraditTheekakul 6. Mr.ChirotchanaSucharto,M.D. 1stViceChairman 5. Mr.PongsakViddyakorn,M.D. 4. Mr.PrasertPrasarttong-Osoth,M.D. Chairman/IndependentDirector 3. Mr.WichaiThongtang 2. Mr.ChuladejYossundharakul, M.D. 1. Prof.(Emeritus)ArunPaisawasdi,M.D. Board ofDirectors for furtherreportingofanychangesattheBoardDirectors’ meetings. Act, aswellreportsecuritiesheldofoneself,spouseand children(notyetoflegalage)totheCompanySecretary the AuditCommittee. goals andplans. plans, annualbudgets,investments,andmake actions indicatedintheArticlesofAssociation,PublicCompanyActandrelevantlaws. regulations oftheCompanyandresolutionsshareholders’meeting.Directorsareauthorizedtoperform The BoardofDirectorsmeeting 6/2011on26thJune2011resolvedtoappointthe AuditCommittee,whichis The BoardofDirectorshasappointedMs.KessaraWongsekate, AssistantVicePresident,astheCompanySecretary Two directorsoutofthefollowing ų cient internalcontrolandauditsystemsforthepurpose ofauditing,operationaloversightandliaisewith Ŵ icts ofinterestoneself,spouseandrelatedpersonsas prescribedintheSecuritiesandExchange ų ve maysignjointlyandaf ų nancial decisions. ų x thecompanyseal:Mr.PrasertPrasarttong-Osoth, ų t oftheCompanyinaccordancewith ų ll herdutiesasassignedbytheBoardof ų cations oftheCapital 53 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t 54 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t 2 2. Apartfromthequali through acollectivedecision. Company, subsidiaries,associatedcompanies,samelevel subsidiariesorjuristicpersonsthatposeacon 1. TheAuditCommitteemembermustbeanIndependentDirectorandappointedbytheshareholders’meeting uali 2.1 NotaDirectorthathasbeen assignedbytheBoardofDirectorstomakedecisionson operationsoftheCompany, following quali 1.9 Notpossesanyothercharacteristicswhichmayrender thatpersonincapableofexpressingindependentopinions 1.8 Notconductinganybusinesswhichisofthesamenature asorinmaterialcompetitionwiththatoftheCompany 1.7 IsnotadirectorwhohasbeenappointedasrepresentativeoftheCompany’sdirectors,majorshareholders 1.6 Isnot/hasnotbeenaprofessionaladvisor,whichincludeslegalcounseland 1.1 Holdslessthan1.0percentofthevotingsharesCompany,itssubsidiaries,associatesoraf to theSecuritiesandExchangeCommission: or themeetingofBoardDirectors.IndependentDirectorsmusthavefollowingquali 1.5 Isnot/HasnotbeenanauditoroftheCompany,parentcompany,subsidiaries,associatedcompanies,major 1.4 Doesnothave/HashadbusinessrelationshipwiththeCompany,parentcompany,subsidiaries,associated 1.3 Isnotabloodrelativeoforhaslegallyregisteredrelationshipasfather,mother,spouse,siblingandchild, 1.2 Isnot/Hasnotbeenanexecutivedirector,staff,employee,salariedadvisororpersonwithcontrollingpower Independent Directorsmaybeassignedbytheboardof Directorstomakedecisionsregardingoperationsofthe ų pose con the parentcompany,subsidiaries, associatedcompanies,samelevelsubsidiariesor other juristicpersonsthat with regardstotheCompany’soperations. in materialcompetitionwiththatoftheCompanyorits subsidiaries. more than1%oftotalshareswithvotingrightsany company whosebusinessisofthesamenatureasor or itssubsidiaries,norbeasubstantialpartner,executive director,staff,employee,salariedadvisor,orhold or ashareholderwhoisrelatedpersontomajorshareholder. 2 yearspriortotheappointment. with controllingpowerorpartneroftheprofessionaladvisor,unlessthatstatushasendedfornolessthan companies, majorshareholdersorpersonswithcontrollingpowerandisnotasubstantialshareholder,person an annualservicefeeexceedingBaht2millionfromtheCompany,parentcompany,subsidiaries,associated has endedfornolessthan2yearspriortotheappointment. subsidiaries, associatedcompanies,majorshareholdersorpersonswithcontrollingpower,unlessthatstatus with controllingpowerorpartnerofanaudit shareholders orpersonswithcontrollingpoweroftheCompanyandisnotasubstantialshareholder,person no lessthan2yearspriortotheappointment. associated companies,majorshareholdersorpersonswithcontrollingpower,unlessthatstatushasendedfor controlling powerofanentitythathasabusinessrelationshipwiththeCompany,parentcompany,subsidiaries, judgment. Inaddition,theindividualmustnotbe/havebeenasubstantialshareholderorpersonwith companies, majorshareholdersorpersonswithcontrollingpower,inawaythatmayhinderone’sindependent proposed asmanagementorthosehavingcontrollingpoweroverthecompanysubsidiaries. as wellspouseofchild,withmanagement,majorshareholderscontrollingpowerorindividualstobe meaning subsidiarywiththesameparentcompany.) government authoritythatisamajorshareholderorcontrollingpersonoftheCompany.(Samelevelsubsidiaries This restrictionshallnotapplytoanindependentdirectorwhohasbeenacivilservantoradvisor or personswithcontrollingpower,unlessthatstatushasendedfornolessthan2yearspriortotheappointment. of theCompany,parentcompany,subsidiaries,associatedcompanies,samelevelmajorshareholders children asde includes sharesheldbyrelatedpersonsoftheindividualindependentdirectors.(Relatedmeaning cations oftheAuditCommittee Ŵ ict ofinterest. ų cations: ų ned inArticle258oftheSecuritiesandExchangeAct.) ų cations oftheIndependent Director,theAuditCommitteemembermustalsohave the ų rm whichemploysauditorsoftheCompany,parentcompany, ų nancial advisor,whoreceives ų cations according Ŵ ict ofinterest ų liates. This 3. Othertransactionswithinthelaw,rulesregulationsornoti 2. ConnectedtransactionsthatfollowtherelatedregulationsofStockexchangeThailand. 1. Transactions betweenanAudit CommitteememberorpersonsconnectedtoanAuditand Committee: The followingareconsideredtonothaveanimpactonthedutiesandindependentopinionsofAudit 3. IsnotamemberoftheAuditCommitteelistedcompanythatisinsamebusinessorindustryas 10) EnsurethattheCompany hassuitableriskmanagementandcontrolsystemencompassing theentireorganization, 9) InthecasethatCompanyhasitsowninternalaudit department,theAuditCommitteehasauthorityto 8) Hireorbringinspecialiststoassistauditingandinvestigating accordingtotheCompany’sguidelinesin 7) Instructandreviewevidenceinthecasewherethere issuspicionofviolationlaworanyregulationsthe 6) Reviewinternalinvestigationevidenceinthecasethat thereissuspicionoffraudorabnormalitysigni 5) Ensuretheuseofproperandef 4) Ensurethatthereisanindependentinvestigationandmonitoringprocesssoemployeescanreportinappropriate 3) NominateauditorandannualauditingfeeforconsiderationoftheBoardDirectorsapproval the 2) Ensurethecorrect,completeandreliableissuanceofreportsdisclosureinformationin 1) EnsurethattheCompanyisincompliancewithlawsonsecuritiesandexchange,regulationsofStockExchange Committee shallhavethefollowingdutiesandresponsibilities: Duties andResponsibilitiesoftheAuditCommittee to thedutiesofAuditCommitteeensurecorrectness 2.) Priceofgoodsorservicesarecomparabletothoseofferedothercustomers. 1.) Acquisitionorsaleofgoodsservicesinnormalcoursebusinesswithgeneraltradetermsthatareclearly or servicesunderthefollowingconditions: the company,subsidiaries,associatedcompaniesormajorshareholdersinvolvingacquisitionandsaleofgoods be abletoful Company orbeamemberoftheAuditCommitteemorethan 2.2 Haveknowledge,experienceandcandedicatesuf as wellsuggest waystosuitablyandef the AuditCommitteehas powertoapprovethehiringaswellfeebe paidtotheexternalparty. audit department.However, inthecasethatCompanyhiresanexternalpartyto conducttheinternalaudit, approve theappointment,transfer andtermination,aswellevaluatetheperformance oftheheadinternal specialists. the case thattheAuditCommittee listed company. Stock ExchangeofThailand,whichmaysigni defect ofinternalcontrolmeasuresforpresentationto theBoardofDirectorsforfurtherconsideration. of theinternalauditdepartment. with independentexternalauditorsandinternalauditors.TheAuditCommitteeshouldconsidertheindependence items inthe shareholders’ meeting. laws andgovernmentagencies. to ensurethatthereportsarecompletedwithintimeframeprescribedbyStockExchangeofThailand, of theCompanybyliaisingwithexternalauditorsandexecutivesresponsibleforpreparation of Thailand,andlawsrelatedtothebusiness. compliance withlaws,regulationsandethicstosupportgoodcorporategiovernance. In orderthattheAuditCommitteemayperformdutiesasassignedbyBoardofDirectors, stated anddisclosed. ų nancial statusandoperatingresultsoftheCompany.Insuch case,theCompanyshallbearcostsofhiring ų nancial statementsorothermatters. ų ll dutiesatanyonecompanytothefullest. ų ų cient internalcontrolandauditmeasuresbyengaginginthejointrevision nds orsuspectsthatthereisatransactionaction maysigni ų ciently manage risksthatariseinthebusiness. ų cantly affectthe ų cient timetotakeondutiesasassigned. ų cations oftheStockexchangeThailandaccording ų nancial reports,ef ų ų nancial statusandoperationalresultsofthe ve otherlistedcompaniesashe/shemaynot ų ciency ofinternalcontrolsand ų ų ų nancial reports nancial reports cantly impact ų cant 55 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t 56 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t 9) Completeother tasksasassignedbythe BoardofDirectors. 8) Reviewthecharterof NominationandRemunerationCommitteeannually. In thecasethatCommittee 7) Prepareasuccessionplan forthepositionofChiefExecutiveOf 6) EvaluatetheperformanceofChiefExecutiveOf 5) Prepareguidelinesandprocedureinevaluatingtheperformance oftheChiefExecutiveOf 4) Determinemodeofcompensationandguidelinesfor remunerationoftheChiefExecutiveOf 3) Determinesuitablequali CommitteeMember CommitteeMember 2) Determinemodeofremuneration,guidelinesforremunerationandDirectorssub-committee CommitteeMember CommitteeMember 1) Determinesuitablequali Duties andResponsibilitiesoftheNominationRemunerationCommittee 5. Mr.SripopSarasas Chairman oftheCommittee 4. Dr.SomchaiSujjapongse 3. Mr.ChawalitSetthmethikul 2. Mr.ChuladejYossundharakul 1. Prof.(Emeritus)SantasiriSornmani Nomination andRemunerationCommitteeareasfollows: Committee, whichistobecomprisedofindependentdirectorswithatermthreeyears.Themembers the Nomination andRemunerationCommittee 15) CompleteothertasksasassignedbytheBoardofDirectors 14) ReviewthecharterofAuditCommitteeannually.Theshouldincludedetailsresponsibilities 13) PreparetheAuditCommitteeReportanddisclosereportinCompany’sannualreport.Theshould 12) Ensurethattherearenocon 11) ReviewtheriskmanagementreportsandmonitorimportantrisksaswellreporttoBoardon Directors forapproval. circumstances, theNomination andRemunerationCommitteeshallproposesuch amendments totheBoardof deems thatitisnecessary to amendthecharterincompliancewithchanging ofrules,regulationsand Directors. approval bytheBoardofDirectors. the BoardofDirectorsanddetermineannualremuneration basedontheresultsofevaluationforfurther approval bytheBoardofDirectors. structure, guidelinesandratesshallbeproposedtothe BoardofDirectorsforapproval. that areprecise,transparent,justandcorrespondingto theresponsibilitiesandperformance.Theremuneration President aswellselectingthemostquali meeting forapproval. shall beproposedtotheBoardofDirectorsforconsiderationbeforeproposinggeneralshareholders’ will motivatequalitydirectorstoremainwiththeCompany.Theremunerationstructure,guidelinesandrates members thatareprecise,transparent,justandcorrespondingtotheresponsibilitiesperformanceso it meeting forapproval. should benominatedasDirectortotheBoardofDirectorsforconsiderationinproposinggeneralshareholders’ and circumstances,theAuditCommitteeshallproposesuchamendmentstoBoardofDirectorsforapproval. the Committeedeemsthatitisnecessarytoamendcharterincompliancewithchangingofrules,regulations Committee suchasthehiringofspecialiststoprovideopiniononmattersthatrequireexpertise.Incase the AuditCommitteeataminimum.Inaddition,chartershouldsuf of theAuditCommitteeasprescribedinregulationsStockExchangeThailandonresponsibilities include detailsasprescribedinthenoti of Thailand. and relatedpersonstoascertainthatthetransactionsarewithinlawregulationsofStockExchange Committee’s viewonthesuf The BoardofDirectorsmeeting2/2012on29thFebruary2012resolvedtoappointtheNominationandRemuneration ų cations ofDirectors,waystorecruitandguidelinesinselectingquali ų cations, waystorecruitandguidelinesinselectingthe ChiefExecutiveOf ų ciency oftheriskmanagementsystemandcontrol. Ŵ icts ofinterestbyreviewingtransactionsbetweentheCompanyorsubsidiaries ų cations oftheStockExchangeThailandandrelatedregulations. ų ed candidateforapprovalbytheBoardofDirectors. ų cer andPresidentaccordingtotheguidelinesapproved by ų cer andPresidentforapproval bytheBoardof ų ciently supportthedutiesofAudit ų cer andPresidentfor ų ed candidateswho ų cer andPresident ų cer and approved attheshareholders’meetingasprescribedby thearticleofCompany. on therelatedmatter.Moreover,abovementioned authoritydoesnotincludeothermattersthatmustbe must actinaccordancewithregulationsandguidelinesof theStockExchangeofThailandorotherrelatednoti accordance withtheregulationsofStockExchange ofThailandorotherrelatednoti it doesnotincludeconnectedtransactionsandacquisition/sale ofimportantassetsthelistedcompanyin possible con 14) OtherdutiesasassignedbytheBoardofDirectors 13) ReviewthecharterofExecutiveCommitteeannually.Incasethatdeems it is 12) Havetheauthoritytoappointworkingteamsaddressandsolveproblemsensurecompliancewith 11) ScreenandreviewthepayscaleannualraiseofCompanysubsidiaries(excludingChiefexecutive 10) Approvetheappointment,transferorterminationofmanagementwithinauthoritygrantedbyBoard 9) ApprovethesuccessionplanfrompositionofHospitalDirectororacomparableto of 8) Considerandreviewtheorganizationstructuredutiesresponsibilitiesoftoplevelbeforeproposing to 7) EnsurethattheCompanyhaspreciseandappropriateinternalcontrolsystemsriskmanagement 6) ApproveorreviewtheloanlimittosubsidiarieswithinauthoritygrantedbyBoardofDirectors. 5) ApproveexpendituresforinvestmentsandoperatingcostswithintheauthoritygrantedbyBoardofDirectors. 4) ConsiderthesummaryreportonoperationsofCompanyandpresenttoBoardDirectorseachquarter. CommitteeMember 3) SuperviseoperationsoftheCompanyandensurecompliancewithplanssetaswelllawsregulations CommitteeMember CommitteeMember 2) Considerbusinessplans,annualbudgets,investmentplansandcorporatesocialresponsibility(CSR)ofthe 1) Determinethevision,policiesandstrategiesofCompanyforfurtherapprovalbyBoardDirectors. Duties andResponsibilitiesoftheExecutiveCommittee ViceChairman 5. Mr.ThongchaiJira-alongkorn ChairmanoftheExecutiveCommittee 4. Mr.PraditTheekakul 3. Mr.ChatreeDuangnet,M.D. 2. Mr.ChuladejYossindharakul, M.D. 1. Mr.PrasertPrasarttong-Osith,M.D. Executive Committee Executive Committeeshallproposesuchamendments totheBoardofDirectorsforapproval. necessary toamendthecharterincompliancewithchangingofrules,regulationsandcircumstances, Company policies. Of and articlesofeachcompany. that thesubsidiariesmayprocessapprovalofsuchappointmentsasprescribedbylaworapplicableregulations of Directors.TheCommitteeshallalsoapprovetheDirectorsandPresident/ManagingDirectorsubsidiariesso Chief Of the BoardofDirectorsforapproval. according tothesuggestionsandcommentsofAuditCommittee. of therelevantagenciesandarticlesCompany. approval. Company sothattheyareinlinewiththepoliciesandstrategiessetproposetoBoardofDirectorsfor The aboveauthorityanddutiesshallnotincludeanitem thatwillcausetheexecutiveof The BoardofDirectorsmeeting5/2012on30thMay2012resolvedtoappointtheExecutiveCommitteeasfollows: ų cer andPresident)forfurtherapprovalbytheBoardofDirectors. ų cers orcomparablepositions. Ŵ ict tohaveastakeorcon Ŵ ict ofinterestinanyformwiththeCompanyorsubsidiaries. Furthermore, ų cations. TheCompany ų cers orpersonswith ų cations 57 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t Top 4 Executive Ofųcers Name Title 1. Mr. Prasert Prasarttong-Osoth, M.D. President & CEO/Chief Operations Ofųcer - Administrative Affairs 2. Mr. Chatree Duangnet, M.D. Chief Operation Ofųcer - Medical Affairs 3. Mrs. Narumol Noi-Am Chief Financial Ofųcer 4. Mr. Trin Charumilind, M.D. Chief of Doctor Role and Responsible for Company’s Managements 1. Manage the Company in accordance with the policies, plans, goals, regulations and good corporate governance as prescribed by the Company, as well as in strict compliance with related laws and regulations. 2. Manage the Company in accordance with the resolution of the shareholders’ meetings, resolutions of the Board of Directors’ meetings and resolutions of the Executive Committee meetings (as the case may be) within the duties, responsibilities and power of approval with honesty, care and with the best interests of the Company in mind for the greater good of the organization and the shareholders, as well as fair consideration of stakeholders. 3. Regularly report performance and progress of the Company at the Board of Directors’ meetings to ensure that the Company is operating in accordance with the determined goals and plans. 4. Report conŴicts of interest of oneself, spouse and related persons as prescribed in the Securities and Exchange Act, as well as report securities holdings of oneself, spouse and children (not yet of legal age) to the Company Secretary for further reporting of any changes to the Board of Directors. S h a r e o l d i n g t u c M m 5. Consider matters to be proposed to the Executive Committee and/or Board of Directors (as the case may be), as well as consider ways to solve any problems that arise. 58 6. Other duties as assigned from time to time by the Executive Committee and/or the Board of Directors (as the case may be). The above authority and duties shall not include an item that will cause the executive ofųcers or persons with possible conŴict to have a stake or conŴict of interest in any form with the Company or subsidiaries. Furthermore, it does not include connected transactions and acquisition/sale of important assets of the listed company in accordance with the regulations of the Stock Exchange of Thailand or other related notiųcations. The Company must act in accordance with regulations and guidelines of the Stock Exchange of Thailand or other related notiųcations on the related matter. Moreover, the abovementioned authority does not include other matters that must be approved at the shareholders’ meeting as prescribed by the article of the Company. 3. Selection of Directors A n u a l R e p o r t 2 0 1 The Nomination and Remuneration Committee has the responsibility of selecting directors to replace those that have completed their terms or must retire for other reasons or new positions. The Committee shall consider and select the qualiųed persons and present the ųnal candidates to the Board of Directors for approval (in the case of replacing existing directors) or for approval for later appointment by the shareholders. The Nomination and Remuneration Committee shall select qualiųed persons with knowledge, capability, past experience that is beneųcial to the company, leadership skills, vision, and persons who are moral and ethical. In addition, the candidates shall have a transparent and untainted work history, autonomy in making decisions with professionalism and integrity, as well as meet the qualiųcations as stated in the Company’s Articles of Association and the notiųcations of the Ofųce of the SEC. The appointment of a Director must be approved by the shareholders’ meeting as per the following guidelines: (1) Each shareholder has number of votes equal to the number of shares held. (2) Each shareholder shall cast all votes available to them under (1) to elect an individual or multiple individuals as director(s). In the event where multiple directors are elected, votes may not be distributed to the various candidates in varying proportions. (3) Candidates with the most votes are to be appointed Directors up to the number open at a given meeting. If more candidates receive equal votes than the number of Directors required, the Chairman of the meeting must cast a deciding vote. The appointment and dismissal of Directors shall be as prescribed in the Articles of Association as follows: 1. The Board of Directors shall be comprised of at least 5 directors and no less than half shall have residence in Thailand. 4. Apartfrombeingretiredatcompletionofterm,adirectormaybeunderthefollowingcircumstances 3. Attheannualgeneralshareholders’meeting,atleastonethird(1/3)ofBoardDirectorsshallberetired. 2. Directorsshallbeindividualswiththefollowingquali 6. Intheeventthatadirectorpositionisvacantduetocircumstancesotherthancompletionofterm,Board 5. DirectorswishingtoresignshallsubmitaletterofresignationtheCompanybeeffectiveuponreceipt the has determinedadditionalquali The selectionofindependentdirectorsisthesameprocessasdirectors.However,Company 7. Intheeventthatnumberofvacantdirectorpositionsisinsuf 4.) Doesnothave/Hashad businessrelationshipwiththeCompany,parentcompany, subsidiaries,associated 3.) Isnotabloodrelativeoforhaslegallyregistered relationship asfather,mother,spouse,siblingandchild, 2.) Isnot/Hasnotbeenanexecutivedirector,staff,employee, salariedadvisororpersonwithcontrollingpowerof 1.) Holdslessthan1.0percentofthevotingsharesCompany,itssubsidiaries,associatesoraf of theSECasfollows Ļ Ļ Ļ be retired.Directorswhoretireasaforementioned,mayre-elected. If theBoardofDirectorscannotbedividedbythree,thenclosestnumbertoonethird(1/3)shall Ļ Ļ Ļ Ļ shall remaininof when thedirector’stermislessthantwomonthstocompletion.Inthiscase,individualservingasreplacement of Directorsshallelectaquali letter bytheCompany. Ļ Ļ in of director positionsisinsuf to thevacantpositions.Themeetingshallbeheldwithinonemonthfromdaythatnumberof act onbehalfoftheBoardDirectorsonlyinorganizationshareholders’meetingordertoelectdirectors remaining. of Directorsastheaboveshallonlybepassedwithvotesnolessthanthreequartersnumberdirectors 2 yearspriorto theappointment. companies, major shareholdersorpersons withcontrollingpower,unless thatstatushasendedfor nolessthan power ofanentitythathas a businessrelationshipwiththeCompany,parentcompany, subsidiaries,associated judgment. Inaddition,theindividual mustnotbe/havebeenasubstantialshareholder orapersonwithcontrolling companies, majorshareholders orpersonswithcontrollingpower,inawaythatmay hinderone’sindependent as managementorthosehaving controllingpoweroverthecompanyorsubsidiaries. well asspouseofchild,withmanagement,majorshareholders withcontrollingpowerorindividualstobeproposed subsidiary withthesameparentcompany.) authority thatisamajorshareholderorcontrollingperson oftheCompany.(Samelevelsubsidiariesmeaning This restrictionshallnotapplytoanindependentdirector who hasbeenacivilservantoranadvisortogovernment or personswithcontrollingpower,unlessthatstatushas endedfornolessthan2yearspriortotheappointment. the Company,parentcompany,subsidiaries,associated companies,samelevelsubsidiaries,majorshareholders children asde includes sharesheldbyrelatedpersonsoftheindividual independentdirectors.(Relatedpersonsmeaning Apersonwhohasneverbeenremovedfromserviceinthegovernmentoragencyduetofraudulentacts. Theshareholders’meetingpassesaresolutiontoretiredirector,withnolessthanthreequartersofthetotal Disquali Resignation Death Apersonwhohasneverbeensentencedtoimprisonmentonachargerelatingfraudulentassets Apersonwhoisnotbankrupt,incompetentorquasi-incompetent Apersonofjuristicage Courtordered The CompanyhasstipulatedthatatleastonethirdoftheBoardDirectorsshallbeindependentdirectors. no lessthanhalfofthetotalnumbersharespresentatmeetingandpossessvotingrights number ofsharespresentatthemeetingandpossessvotingrightsprovidedthattotalis ų ce fortheremainderoftermdirectorwhomhereplaces. ų cation orlegallyunquali ų ned inArticle258oftheSecuritiesandExchangeAct.) ų ce fortheremainderoftermdirectorwhohasretired.TheresolutionBoard ų cient forquorum.Theindividualelectedtothevacantdirectorpositionsshallremain ų ų cations forIndependentDirectorsinaccordancewiththeregulationsofOf ed individualto ų ed ų ll thepositionatnextBoardofDirectors’meeting,except ų cations: ų cient forquorum,theremainingdirectorsmay ų liates. This ų ce 59 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t 60 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t interest throughacollectivedecision. UI"QSJMBOEųSTUBUUFOEFE#PBSENFFUJOHTBU.FFUJOH Note :(1)Mr.Thongchai Jira-alongkornwasappointed asDirectorbytheresolution oftheAnnualShareholders’ Meetingin2012 4.1 MonetaryRemuneration 4. RemunerationofExecutiveManagement Company, subsidiaries,associatedcompanies,samelevelsubsidiariesorjuristicpersonsthatposeacon 9.) Notpossesanyothercharacteristicswhichmayrenderthatpersonincapableofexpressingindependentopinions 8.) NotconductinganybusinesswhichisofthesamenatureasorinmaterialcompetitionwiththatCompany 7.) IsnotadirectorwhohasbeenappointedasrepresentativeoftheCompany’sdirectors,majorshareholdersor 6.) Isnot/hasnotbeenaprofessionaladvisor,whichincludeslegalcounseland 5.) Isnot/HasnotbeenanauditoroftheCompany,parentcompany,subsidiaries,associatedcompanies,major Total remuneration 15. Mr.ThongchaiJira-alongkorn 14. Miss.KananujLekvichit 13. Mr.SripopSarasas 12. Dr.SomchaiSujjapongse 11. Mr.ChawalitSetthmethikul 10. Mr.ChatreeDuangnet,M.D. 9. Mr.ThavatvongThanasumitra 8. Prof.(Emeritus)SantasiriSornmani,M.D. 7. Mr.PraditTheekakul 6. Mr.ChirotchanaSucharto,M.D. 5. Mr.PongsakViddyakorn,M.D. 4. Mr.PrasertPrasarttong-Osoth,M.D. 3. Mr.WichaiThongtang 2. Mr.ChuladejYossundharakul, M.D. 1. Prof.(Emeritus)ArunPausawasdi,M.D. with regardstotheCompany’soperations. competition withthatoftheCompanyoritssubsidiaries. than 1%oftotalshareswithvotingrightsanycompanywhosebusinessisthesamenatureasorinmaterial or itssubsidiaries,norbeasubstantialpartner,executivedirector,staff,employee,salariedadvisor,holdmore a shareholderwhoisrelatedpersontomajorshareholder. appointment. power orpartneroftheprofessionaladvisor,unlessthatstatushasendedfornolessthan2yearspriorto major shareholdersorpersonswithcontrollingpowerandisnotasubstantialshareholder,person annual servicefeeexceedingBaht2millionfromtheCompany,parentcompany,subsidiaries,associatedcompanies, ended fornolessthan2yearspriortotheappointment. subsidiaries, associatedcompanies,majorshareholdersorpersonswithcontrollingpower,unlessthatstatushas with controllingpowerorpartnerofanaudit shareholders orpersonswithcontrollingpoweroftheCompanyandisnotasubstantialshareholder,person Annual RemunerationtoDirectorsforyearending31 Independent Directorsmaybeassignedbytheboardoftomakedecisionsregardingoperations Director’s Name (1) ų rm whichemploysauditorsoftheCompany,parentcompany, Independent Director Independent Director Independent Director Independent Director 2 1 nd st ViceChairman ViceChairman st POXBSET Chairman President Director Director Director Director Director Director Director Dcme 02 December2012 Title Attendance at meetings 10/10 16/16 16/16 15/16 16/16 14/16 16/16 16/16 16/16 15/16 16/16 15/16 16/16 15/16 9/16 ų nancial advisor,whoreceivesan Allowance 22,451,600 Director’s 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 1,548,400 2,322,400 - Allowance Meeting 400,000 550,000 550,000 300,000 510,000 550,000 470,000 550,000 550,000 550,000 510,000 550,000 525,000 550,000 800,000 (Unit :Baht) Ŵ ict of on additional dividends. (1) TheCompany announcedinterimdividends for2011andtheAnnualShareholders’ Meetingin2011resolved nottopay 5. DividendPaymentPolicy Remuneration ofExecutiveOf Remuneration ofSub-Committees executive of the amountofBaht81.0million.Inaddition,Companymadecontributionstoprovidentfundforthose Ļ Ļ 4.2 OtherRemuneration Company hashadgoodoperatingresultsandsuf dividends withinaccountingperiodswhichmaybeapproved bytheBoardofDirectorsifdeemsthat expansion andcapitalrequirementsoftheCompanyin eachyear,asapprovedbytheshareholders,exceptfor 2009. TheCompany’spolicyistopaydividendsatnoless than50%ofthecompanypro ExecutiveOf DirectorsandSub-CommitteeMembersApartfromcompensationintheformofmeetingallowancesannual receive medicalbene medical bene allowances asapprovedbytheshareholders,Companyprovidesmedicalservices,Directorsreceive In 2012,the During 2007–2011,theCompanypaidoutdividendsas follows: The Companyhasprescribedamaterialdividendpayment policysincetheAnnualShareholders’Meetingin Total remuneration 5. Mr.SripopSarasas 4. Dr.SomchaiSujjapongse 3. Mr.ChavalitSetmeteeul 2. Mr.ChuladejYossundharakul, M.D. 1. Prof.(Emeritus)SantasiriSornmani,M.D. Total remuneration 3. Mr.SripopSarasas 2. Dr.SomchaiSujjapongse 1. Prof.(Emeritus)SantasiriSornmani,M.D. Dividend PaymentDate 25 April2008 30 April2009 19 April2010 12 January2011 4 May2012 ų cers, whichisabene ų cers Apartfromcompensationintheformofcompanycarandmobilephone,executive Nomination andRemunerationCommittee ų ų ts accordingtocompanypolicy,thesameaswithemployeesofCompany. rst four(4)ExecutiveOf

ų ts accordingtocompanypolicy,thesameaswithemployeesofCompany. Audit Commitee ų cers ending31 ų t thatallemployeesreceive,intheamountofBaht1.6million. ų cers togetherreceivedremunerationintheformofsalaryandbonus iiedPyetRt Bh e hr)DividendPaymentPeriod Dividend PaymentRate(Bahtpershare) st ų December2012 cient liquidity. 0.50 0.60 0.70 1.10 0.80 (1) tednea etnsMeetingAllowance Attendance atmeetings MeetingAllowance Attendance atmeetings 2/2 1/2 2/2 2/2 2/2 8/8 3/8 8/8 January 2007-December 2007 January 2008-December January 2009-December January 2010-December January 2011-December ų ts, dependingonbusiness 360,000 740,000 235,000 260,000 120,000 50,000 25,000 50,000 50,000 60,000 (Unit :Baht) (Unit :Baht) ų cers also 61 A n n u a l R e p o r t 2 0 1 2 S h a r e h o l d i n g S t r u c t u r e a n d M a n a g e m e n t 62 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e Good holding theshareholders’ meetings. the Company has thedutytodiscloseinformation withtransparency andshowresponsibilityof managementby right todividendpaymentsand therighttoreceiverelevantinformationregularlyand inatimelyfashion.Moreover, of allshareholders.Itisthe Company’sdutytoprotecttherightsandinterestsof the shareholders,including the goodofwhole. decisions mademustbe withhonestyandintegrity,aswellbefairtomajor andminorshareholdersfor utilization ofinsiderinformationandresolutioncon 2.1 RightsandEquality 2. RightsandEqualityofShareholders 1. CorporateGovernancePolicy management toencouragepracticeandsetexamples. the Company’spracticestocomplywithsuchregulations,whichissupportedbyBoardofDirectorsand Exchange ofThailand.TheCompanymonitorsthenewregulationsthathavebeenputintopracticeandadjusts as assignedtothePresidentandmanagement,whichwillcomplywithapprovedcorporategovernancepolicies. the Company’scontinuousandsustainablegrowth. and valueforshareholdersinthelongterm,aswellbene Directors, managementandallstakeholders.Theaimofgoodcorporategovernanceistoincreasecompetitiveedge that corporategovernancedeterminesthestructureofrelationshipsamongshareholders,Board .Rsosblt fteBado ietr n u-omtes 5. Businessethics 4. ResponsibilityoftheBoardDirectorsandsub-committees 3. Disclosureandtransparency 2. Policyonstakeholders’interests 1. Rightsandequaltreatmentofshareholderstheshareholders’meeting assure thattheCompany’scorporategovernancepolicyisup-to-dateandsuitspresentsituation. organization complieswithallpolicies,includingtheregularmonitoring,reviewandrevisionofpolicies.This is to ethical andabidesbythegoverninglawsregulations. that managementactef through integrationofpolicyandbusinessdirection,suf many changestomeetinternationalstandards.TheBoardofDirectorshasemphasizedgoodcorporategovernance the PresidentandotherDirectorswhoarebothmembersofBoardexecutivemanagement. shareholders withthePresident,aswellmanagement.Furthermore,policyclearlycoversdualrole of making. Inaddition,theBoardofDirectorsmustalsobeawareinterestsotherstakeholders. of shareholders.EachDirectormustpossesshonesty,determination,aswellindependencethoughtanddecision as wellassesseconomic,social,environmentalandethicalfactorswhichmaysigni The Companyisawareofits responsibilityinassigningimportancetorightswithoutbias andwithequaltreatment The Companyisresponsibletoshareholdersindisclosure ofinformation,preparation The Company’sgoodcorporategovernancepoliciesareincompliancewiththeguidelinessetbyStock The BoardofDirectorsplaysmanysigni The Companyrecognizesitsrole,dutyandresponsibilityinpracticinggoodcorporategovernancebelieves The CorporateGovernancePolicycoversthefollowingtopics: The BoardofDirectorshasentrustedtheAuditCommitteetodraftinternalauditschemeensurethat Since 2008,theBoardofDirectorshasreviewedandrevisedcurrentcorporategovernancepolicymade The corporategovernancepolicyrecognizesthespecialrolethatBoardofDirectorsplaysinconnecting The BoardofDirectorsisresponsibletoeveryshareholderandendeavorsunderstandtheneedsshareholders, Corporate Governance ų ciently undertheestablishedpoliciessoastoascertainthatCompanyistransparent, ų cant roles;oneofthoserolesistoensuregoodcorporategovernance Ŵ icts ofinterest.Managementmustpossessethicsandany ų cient internalcontrolsandauditing,aswellensuring ų ts oftheotherstakeholders,whichwillensure ų cantly impacttheinterests ų nancial statements, and organization ofthemeetingtoafter meeting. compliance withthelawsand regulationsoftheStockExchangeThailandfrom announcementofthemeeting general shareholdersmeeting withinfourmonthsfromtheendofaccounting year.Themeetingsareheldin the opportunitytobefully informed beforeexercisingtheirrights.To thisend,theCompanyhasheldannual 2.2 Shareholders’Meetings vote onthatagendawiththeexceptionofvotingforappointment orremovalofdirectors. the meetingsothatshareholdersmaylaterverifyinformation. “for”, “against”and“abstain”votesarerecorded,aswell asthequestionsraised,explanationsandopinionsof the meeting.Theresultsofvotingarerecordedin theminutesofmeeting.Foreachagenda,number case thatashareholderobjects,abstainsorsplitvote. Theballotsshallberetainedforfurtherinspectionafter an additionalvote,apartfromhis/hervoteasashareholder, asthedecidingvote.Ballotsshallbeusedonlyin agendas forwhichthelawdoesnotspecifyotherwise). If thevoteisequal,Chairmanofmeetingshallcast The Companydeemsthatoneshareequalsvoteandthemajoritydecidesoutcome(forgeneral within theappropriatetimeframe.Theprocessofvotingandcountingvotesiscarriedoutswiftlywithfulldisclosure. persons asDirectorstotheBoardofpriormeetingbetween1December201214January2013. shareholders toproposeagendasfortheannualgeneralmeetingaswellnominatequali as towhythatagendawasnotincludedintheproceedings.In2012,Companyprovidedopportunity for agenda isnotsuitable,theBoardofDirectorsshallreportthistoshareholders’meetingandprovidereasons proceedings forconsiderationoftheshareholders.However,ifBoardDirectorsisopinionthatsuch suitable, constructiveandbene on theCompany’swebsite.IncasethatBoardofDirectorshasconsideredproposedagenda is interested shareholderscanaccessinformationonguidelinesandconditionsinproposingagendasnominees Board ofDirectorspriortothemeeting.TheCompanygivesopportunitydosoforaperiod45days and for theannualshareholders’meeting,aswelltonominatequali in themeetinginvitationpackageordownloadproxyformfromCompany’swebsite. appointing suchproxy,shareholdersmayuseanyoneoftheproxyformsorOwerAttorneyformincluded should appointanindependentdirectorasproxytoattendthemeetingandvoteonshareholder’sbehalf. In rights, theCompanysuggeststhatincaseshareholdercannotattendaparticularmeeting, to attendmeetingsandvoteontheirbehalf.Inaddition,provideanotherchannelinexercisingshareholders’ of themeetingdate. For 2011annualgeneralmeeting,theCompanypostedletterofinvitationonwebsite30daysinadvance convenience, theCompanypostsletterofinvitationtoshareholdersmeetingonwebsite. informs shareholdersoftheirrightsinattendingthemeetingsandrighttovote.Inaddition,providegreater so thattheshareholdersmaybewellinformedwhenmakingdecisiontovote.Inletter,Companyalso shareholders ofthemeetingagendaaswellopinionBoardDirectorsoneachandotherdocuments the Companyandhaverighttobetreatedfairly. investors equallyreceiveinformationonbusinessoperations,managementpolicyandthe may betterunderstandtheCompany’soperations.Majorandminorshareholders,institutionalinvestorsforeign The Company’spolicyisto convenetheshareholders’meetingasprescribedby lawandgiveshareholders In thecasethatanyshareholderhasaspecialstakein anyoftheagendas,shareholderisnotallowedto During theshareholders’meeting,eachshareholderhasequalrightstoexpresstheiropinionsandposequestions The Companyhasapolicytogivetheshareholdersopportunitysubmitquestionsandproposeagendas The shareholdersshallreceiveproxyformstoallowtheappointanauthorizedrepresentative At eachshareholder’smeeting,theCompanywilldistributeletterofinvitationinadvancetoinform The Companyhasthepolicytosupportdisclosureofinformationandbusinesstransactionssothatshareholders ų cial totheCompany,BoardofDirectorswillincludesuchagendainmeeting ų ed andcapablepersonsasDirectorstothe ų nancial statementsof ų ed andcapable 63 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 64 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e unof the BoardandPresident willclarifyallinformationduringthemeetingandgive alldirectorstheopportunityto on businessoperations,and theannual the Board(incaseofdirectors)orPresident the caseofexecutivemanagement). attend theshareholders’meeting,he/shemustsubmit awrittenexplanationoftheabsencetoChairman and FinancialDirector(InvestorRelations),attendeach shareholders’meeting.Ifanydirectororexecutivecannot as wellsub-committees,theauditorandexecutivemanagement suchasChiefFinancialOf to themeetingagendaandallowshareholdersequal opportunityincastingvotes. information andvotingresultsaftereachagendaduring the meeting.TheCompanyhaspolicytostrictlyadhere to questionsfromtheshareholders.Aftereachagenda, resultsofthevotewillbeannouncedanddulyrecorded. in thevariousagendasbeforemeetingisof During Meetings registration stage. prepared ballotsforthevotingofindividualdirectors.Shareholdersand/orproxiesshallreceiveat the has preparedseparateballotsforeachagenda,especiallytheselectionofDirectors,wherebyCompany has decisions whenexercisingtheirrightsandvoting. the shareholderappointanindependentdirectortoactasproxy.Thisisassistshareholdersinmakinginformed Company hasdelivereddetailsonthemeetingproceedingsandappointmentofproxy,includingsuggesting that Company’s annualreport,proxyformandalistofaccompanyingdocumentsthemeeting.Additionally, the agenda aswellopinionsoftheBoardDirectorsoneachandaccompanyingdocuments(ifany), the meeting date. equality. Since2011,theCompanypostedmeetinginvitationonCompany’swebsite30dayspriorto the com) underthemenuitem“InvestorRelations”asanadditionalmodeofdispensinginformationtoensureshareholder meeting andaccompanyingdocumentsbothinThaiEnglishontheCompany’swebsite(http://www.bangkokhospital. prior tothemeetingdate. daily ThailanguagenewspaperandinatleastoneEnglishforthreeconsecutivedays needed forconnectedtransactionsorspecialmatters.Thenoti matters, whichisahigherstandardthanthelawrequires,andatleast14daysinadvancecaseapproval Prior toMeetings received. Detailsoftheproceedingsshareholders’meetingsareasfollows: Directors mustconvenetheextraordinaryshareholders’meetingwithinonemonthfromdaypetitionis regulations. Thepetitionmustclearlystatethereasonforconveningextraordinarymeeting.Boardof Directors toholdanextraordinarymeetingoftheCompany’sshareholdersasstatedincompanyrulesand 25 personswhosetotalsharesisnolessthanonetenth(1/10)ofoutstanding,maypetitiontheBoard The Chairmanofthemeeting hasprovidedsuf To honortherightsofallshareholders,Companyhasputinplaceapolicy,whichrequires thatalldirectors, For theconvenienceofshareholdersandforclarity, theCompanyusesmultimediafacilitiesinpresenting The CompanyhasassignedtheChairmanofmeetingdutynotifyingandexplainingvotingprocedures For theconvenienceofshareholders,Companyprovidesregistrationatmeetingusingbarcodesand The meetinginvitationshallincludedetailsofthemeeting,suchastimeandplacefor From theannualgeneralshareholders’meetingin2007onwards,Companyhasannounced The Companyhassentlettersofnoti Shareholders withtotalsharesnolessthanone ų cially meettheshareholders aftereachmeeting. ų ų nancial reportswithoutinfringing shareholders’rights.TheChairmanof cation byregisteredmailnolessthan10daysinadvanceforgeneral ų cially convened.ThePresidentisassignedthetaskofresponding ų cient opportunityforshareholders toraisequestionsandadvise ų fth (1/5)ofsharesoutstandingorshareholdersnolessthan ų cation ofthemeetingispublishedinatleastone ų cer, AccountingDirector 3. EqualityandRightsofStakeholders Policy under themenuitem“InvestorRelations”. to announcetheminutesofshareholders’meetingoncompanywebsite(http://www.bangkokhospital.com) to theStockExchangeofThailandwithinprescribed14daysaftermeeting.TheCompanyhaspolicy and opinionsofthemeetingaredetailedinminutes.Theminutesshareholders’submitted agenda, numberof“for”,“against”and“abstain”votesarerecorded,aswellthequestionsraised,explanations After Meetings strong riskmanagement toreciprocateand showresponsibilitytoour shareholders. development. TheCompanystrivesonprofessional management,ef and futurebusinessrisks.The Companyemphasizesbusinessforconsistentpro and sustainablecapabilityin generatingpro 3.3 PolicyonShareholders Directors’ meeting. every month.TheCompanySecretarywillpresentthereport onthechangesinsecuritiesholdingsatBoardof holding, aswellholdingsofspouseanddependents, eachtimethereisachange,totheCompanySecretary of theCompany. gain aswellprovidinginsiderinformationtootherpersons orjuristicpersonstobuysellsharesandsecurities strictly prohibitingtheuseofinsiderinformationtobuy orsellsharesandsecuritiesoftheCompanyforpersonal or informationtoestablishabusinessthatisincompetition withorisrelatedtotheCompany’sbusiness.Thisincludes or informationthattheyreceivethroughtheirpositionsfor personalgain.Noraretheypermittedtouseopportunity 3.2 PolicyonInsiderInformation between subsidiariesandstakeholders. or voteonanymattersinwhichtheyhaveaninterest,includingtransactionsbetweencompaniesand any transactionswillnotbepartofthedecisionmakingprocess.Directors,especially,allowedtoconsider con own personalgain.Directors,managementandemployeesmustrefrainfromengagingintransactionswhichhave accepted standardtermsandconditionsofbusinesstransactions. to theCompanyandshareholders.Thetermsconditionsoftransactionsmustfollowgenerally with externalpartieswhichhavenorelationshiptheCompany.Also,transactionsmustfullyprovidevalue Company’s internalguidelines.Moreover,suchtransactionsmustbestrictlycarriedoutaswithanyother regulations oftheSecuritiesandStockExchangeCommissionCapitalMarketCommittee,aswell the with relatedcounter-partiesmustbethoroughlycontemplatedtoensurecompliancetherelevantlawsand 3.1 PolicyonTransactions whichmaycauseCon relevant lawsandregulations,aswellrespectingtheinterestsofallrelatedparties.Thepoliciesarefollows: will ensurethestabilityandlongevityoforganizationinlongterm. agencies andotherrelatedorganizations.TheCompanyalsorecognizesthatthesupportofeachstakeholders or externalstakeholderssuchasshareholders,customers,creditors,counter-parties,communities,government The Companyhaspreparedtheminutesofmeetingaswellrecordedresultsvoting.Foreach The Companyaimstoachieve theutmostbene Directors andmanagementmustreportthetradingof Company’ssecuritiesandupdatetheircurrentshare The BoardofDirectorsprohibitstheDirectors,managementandemployeesfromtakingadvantageopportunities The CompanyhasthepolicytopreventDirectors,managementandemployeesfromusingtheirstatusfor The BoardofDirectorsunderstandsthattransactionswhichmayleadtocon Therefore, theCompanyhaspolicytoprotectrightsofstakeholdersthroughcompliancewith The Companyrecognizesthesigni Ŵ ict ofinterestwiththeCompany.Furthermore,anyDirectors,managementoremployeeswhohaveastakein ų cance ofeachgroupstakeholders,whethertheyareinternalpersonnel ų ts, includingmaintainingthe competitive edgebyrecognizingthecurrent ų Ŵ ts inthelongtermforshareholders throughstablegrowth ict ofInterestandTransactions betweenCompanies ų cient internal control, systematicauditand Ŵ icts ofinterestand/ortransactions ų ts throughcontinuousbusiness 65 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 66 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e to promotion, withoutbiasornepotismin evaluations,expressingopinions andwork. Equal Treatment ofEmployees effectively. evaluations, employeeswill beencouragedtocarryouttheirdutiesanddevelop theirpotentialef each year,theemployeeevaluation isalsoanimportantfactor.Bybasingemployee compensationonemployee in advance.Indeterminingemployeecompensation,apart frombusinesspro of skill,knowledge,attributesandperformance.TheCompany haswidelycommunicatedtheevaluationguidelines evaluating employeesofalllevels.Theshall beevaluatedbasedtheircapabilitiesandpotentialinterms Employee Evaluation the knowledgegainedineachtrainingcourseforgreater bene and willsendthemtoattendthosetrainingsessionsas appropriate. TheCompanyshallmonitorresultsormeasure the intranet.Forexternaltraining,Companyencourages employeesto knowledge andexperienceamongthevariousdepartments, beitthroughmeetingsorinformationexchange sessions. Apartfromtrainingonworkskillsorganizedinternally,theCompanyalsoencouragesemployeestoexchange continuously developandimproveemployees’skills,theCompanyorganizesbothinternalexternaltraining Employee Training employees inordertoretainoutstandingemployees. to planandactaccordingtheobjectivesset.TheCompanyalsogivesimportancecareeradvancement of be informedabouttheworkingprocessofvariousdepartmentswithinorganization.Thiswillenableemployees Company shallthenconsiderexternalcandidates.Eachnewemployeeisrequiredtoattendorientationinorder to staff inordertoprovideanopportunityforcareeradvancement.Iftherearenosuitableinternalcandidates, the recruit themostsuitablecandidates.Inrecruitingforaparticularposition,Companyshallgiveprioritytointernal clearly de Recruitment andCareerAdvancement guidelines inhumanresourcesmanagementfromrecruitment,trainingtomaintainingqualitypersonnelasfollows: knowledgeable andcapablepersonstoremainwiththeorganizationinlong-term.TheCompanyhasputplace of theorganization.TheaimisforCompanytobeaplacelearningpersonnel,aswellmotivate scholarships fordoctors,nursesandemployeessothattheymayusetheknowledgetoassistindevelopment the Company’sinternalwebsite. and justly.Employeesaregiventheopportunitytoexpresstheiropinionsmakesuggestionsmanagementvia supports andpromotesthehealthyworkingenvironmentorganizationalculture,treatsemployeesequally internal andexternalpersonsinordertocontinuouslyenhancetheskillsofemployees.Moreover,Company opportunity andsuitablecompensation.Furthermore,theCompanyhasarrangedfornecessarytrainingbyboth care ofincompliancewiththeCompany’sstrategyandoperationalplans.TheCompanyalsoensuresequal 3.4 PolicyonEmployees under businesslimitationssothateveryshareholderequallyreceivesinformation. lawful rights,theCompanyalsohaspolicydiscloseinformationjustly,withtransparencyandinatimelyfashion suggestions ontheCompanyoperationsatshareholders’meetings,righttofairlyreceivereturns,andother share certi The Company recognizes theimportanceof treatingemployeesequally withintheorganization,from recruitment The Companyevaluatestheemployees’knowledgeand skillbyclearlyandjustlyspecifyingtheguidelinesin The Companyhasthepolicytosupporttraininganddevelopmentofpersonnel.Inorderregularly The Companyrecognizestheimportanceofpersonneldevelopmentfromrecruitmentprocess. Employees areprovidedwithbene Employees areavaluableassettotheCompany.Capableandexperiencedemployeesconsistentlywell-taken Other thanfundamentalrightsoftheshareholderssuchasrighttoinspectnumbershares,receive ų ų nes thelevelofeducation,experience,expertiseandotherquali cate, righttoattendshareholders’meetingsandvote,freelyexpressopinionsmake ų ts andsafetywhichincludemedicalbene ų t oftheCompanyandemployees. ų ll outquestionnairesontrainingdesired ų ų cations ofeachpositioninorderto ts andthestateofeconomyin ų ts, providentfund,andacademic ų ciently and by laworwhen thecustomerhasgivenconsent. organization maintains theprivacyofcustomers andwillnotdisclose anycustomer’sinformation unlessrequired improve thequalityofmedical careservicesinordertomeettheneedsandexpectations ofthecustomers.This strives forcustomersatisfaction byprovidingqualityprofessionalservicewiththe determinationtocontinuously 3.7 PolicyonCustomers party, aswelltoensurethat thetransactionsareethicalbusiness-wise. which maybedishonestorinfringeontherightsaccording tothelaworasmutuallyagreeduponofcounter- according tothetermsandconditionsintradeagreement. TheCompanyhasthepolicytoavoidanyactions 3.6 PolicyonCounter the mutualinterestoforganizationandallrelated persons. management isabletocarryouttheirdutiesandresponsibilities independentlywithoutintervention,whichisfor a suitablecompensationprogramwhichiscomparable tomanagementinthehealthcarebusiness.Moreover, 3.5 PolicyonManagement into goodandoutstandingindividualswillensuretheorganization’sstablesustainablegrowth. been setasaguidelineformanagementandemployees.TheCompany to theregulationsbytakingintoconsiderationgoodcorporategovernanceasde of workregulations,thatemployeewillbeconsideredtoatfault.Thismustdeliberatedandrecti Create First in ordertoexchangeviews.Thiswillenabletheorganizationef include NewYear’s Party,meritmakingandsportsevents.Inaddition,managementmeetsregularly withemployees which willimprovetherelationshipbetweentwoandencouragecontentmentinworkplace;suchactivities which affectstheworkef Build GoodRelationshipbetweenManagementandEmployees within theorganization.Themanualisaccessiblebyallthroughintranetandreviewedrevisedasappropriate. contributed totheOperationalManualbeusedasaguidelineincommunicatingandcoordinatingamongdepartments quality outputthatmeetstandards,aswelleliminateandlessencon Build SolidManagementandIntra to betterthequalityoflifeforouremployees. Company shallemployadditionalemployeessothattheamountofworkissuitablefornumber Furthermore, ifthenumberofemployeesinanydepartmentisinsuf for thehealthandbene employees toworkef Provide Better fairly andjustlyalleviateanyfrustrationintheworkplace. in theshortandlongterm.Inaddition,Companyhasalsosetguidelinesonsubmittinggrievancesorderto can beusedtocorrectand/orimproveanyshortcomingsinmanagementoftheorganizationandpersonnelboth that surveysbeconductedofemployeesatalllevelstogatheropinionsandsuggestions.Theinformationgathered Employee SatisfactionSurveys The Companyrecognizesthat thecustomersareanimportantsuccessfactorof business.TheCompany The Companydoesbusinessjustlyandethicallywithpartners, competitors,creditors,counter-partiesandothers The Companyrealizesthatmanagementisanimportant successfactor.To thisend,the Companyhassetup In orderforemployeestoconformandcollectivediscipline,whenanyemployeeevadesorisinviolation The Companyrecognizesthesigni The Companyrecognizestheimportanceofcontinuousworkprocessesfrombeginningtoendinorderproduce The Companyrecognizestheimportanceofgoodqualitylifeourpersonnel,whichwillencourage In ordertobecomeawareofeachemployee’ssatisfactionorhappinessintheirwork,theCompanyhasspeci  Rate EmployeesfortheOrganizationandSociety 2 uality ofLifeforEmployees ų ciently. We, therefore,paycloseattentiontoensuringthattheworkplaceissafeandhygienic  Parties ų ų t ofouremployees.TheCompanyprovidesannualhealthcheck-upsto ciency. Therefore,wehaveorganizedactivitiesbetweenmanagementandemployees, 8 ų cance ofagoodworkingrelationshipbetweenmanagementandemployees, orking Systems ų ciently andeffectivelyreachforthesamegoals. ų cient fortheamountofworkassigned, ų rmly believesthatdevelopingemployees Ŵ icts. To thisend,everydepartmenthas ų ned bytheCompany,whichhas ų ed according ų ed 67 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 68 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 4. DisclosureandTransparency oversee, coordinateandcommunicatebetweentheorganizationcommunity. environment andthecommunity.In2007,Companyestablished“CommunityRelationsCommittee” to Company hasparticipatedinmanycharitableactivitiesandsupportedtheemployeesconcernsregarding the practiced earnestlyandconsistently,garneringawarenessresultinginorganizationalculture.Moreover,the Safety Policy”withinthehospitaltoallpersonnelandrelatedpersonsfrom2003-2009.Thepolicyhasbeen (MASCI). Furthermore,theCompanyhasannouncedandconveyed“Environmental,OccupationalHealth, Safety Managementwithintheorganizationandreceivedcerti ISO 14001forEnvironmentalManagementandMorOrGor.18001/OHSAS18001OccupationalHygiene the customersandhealthofalllevelspersonnelprovidingservice.To thisend,theCompany Report), relatedpersonsandpersonnelwithintheorganization. act responsiblytowardssociety(pleaseseedetailsunder“SocialResponsibilityActivities”onpage34oftheAnnual and hasparticipatedinactivitiesthatbene safety andenvironment-friendlystandardsthroughoutthebusiness.TheCompanyisinvolvedinpublicinterest 3.8 PolicyonSocialResponsibilityandtheEnvironment e-mail: [email protected] orthecompanywebsitewww.bangkokhospital.com. investors andinterestedpersons maycontacttheFinancialDirector(InvestorRelations) bytelephoneat0-2755-1793, on theSETwebsitewww.set.or.th andtheCompany’swebsitewww.bangkokhospital.com. Forfurtherinformation, ų 4. SiteVisits:10times 3. CompanyVisitsandConferenceCalls:135times 2. AnalystMeetings:5times 1. Roadshows:4domestically,and3abroad(7timesin total) following opportunities: the executiveof about theCompanyarePresident,ChiefFinancial Of being madeavailabletotheinvestors. recognize thecommitmentandresponsibilitytoinformation from theauditorsandhasincludedreportsinannualreportForm56-1sothatmanagementmay decision toinvestinsecuritiesoftheCompanyismadefairlyandwithequalinformation. completely andattheappropriatetimethroughfairsuitablechannels.Themainpurposeistoensurethat the affect thepriceofsharesand/orsecuritiesCompany.Thisinformationwillbedisclosedsuf which mayaffecttheinterestsofshareholdersordecisiontoinvestinCompany,turn, justly, timely,withtransparency,andasprescribedbyrelevantlawsregulations. shareholders, investorsandsecuritiesanalysts,aswellthegeneralpublic,isdonesosuf nancial statements,andnewstotheStockExchangeofThailand (SET).Interestedpersonsmaylookupthisinformation The Companyrecognizestheimpactofmedicalcareprocessonenvironment,aswellsafety The Companyaimstoconsistentlytreatsocietyandtheenvironmentwithhigheststandardsbyupholding Apart fromtheaforementionedinstances,Company provides informationonthecompany,operatingresults, In communicatingexternally,executivemanagementwhohavebeenassignedthetaskofdisclosinginformation The BoardofDirectorshaspreparedthereportresponsibilitiesto The Companyhasthepolicytodisclose The Companyhasthepolicytoensurethatdisclosureof ų cers, includingtheFinancialDirector(InvestorRelations) metwithandprovidedinformationatthe

ų t thecommunityandenvironment.ItisCompany’spolicyto ų nancial statements,importantinformationandanyother ų ų cer andFinancialDirector(InvestorRelations).In2012, cation fromManagementSystemCerti ų nancial informationandgeneralto ų nancial reports,whichmustbeaccuratebefore ų nancial statementsalongwiththereport ų ciently, completely, ų cation Institute ų rst adopted ų ciently, 6. Isnot/hasnotbeenaprofessional advisor,whichincludeslegalcounseland 5. Isnot/HasnotbeenanauditoroftheCompany,parent company,subsidiaries,associatedcompanies,major 4. Doesnothave/Hashadbusinessrelationshipwith theCompany,parentcompany,subsidiaries,associated 3. Isnotabloodrelativeoforhaslegallyregisteredrelationshipasfather,mother,spouse,siblingandchild, as 2. Isnot/Hasnotbeenanexecutivedirector,staff,employee,salariedadvisororpersonwithcontrollingpower of 1. Holdslessthan1.0percentofthevotingsharesCompany,itssubsidiaries,associatesoraf are asfollows: shareholders. subsidiaries, associatesorrelatedcompanies,whichmaynegativelyaffecttheinterestsofCompanyand/or Furthermore, theIndependentDirectorsmustnothaveabusinessorbeinvolvedwithinterestsofCompany, or relatedcompanieswithindependentmanagement,majorshareholdersnorhaveauthoritytotakeoverthebusiness. Independent Directors major shareholders. do theyreceiveamonthlysalaryfromtheCompany.TheseDirectorsmaybeappointedorrepresentativesof Non monthly salaryorotherequalcompensationfromtheCompany. Executive Directors Directors. Ofthe8Non-ExecutiveDirectors,4areIndependent 5.1 BoardofDirectors 5. ResponsibilitiesoftheBoardDirectorsandSub-Committees appointment. power orpartner oftheprofessionaladvisor, unlessthatstatushasended fornolessthan2years priortothe major shareholders orpersonswithcontrolling powerandisnotasubstantial shareholder,aperson with controlling annual servicefeeexceeding Baht2millionfromtheCompany,parentcompany,subsidiaries, associatedcompanies, ended fornolessthan2years priortotheappointment. subsidiaries, associatedcompanies, majorshareholdersorpersonswithcontrolling power, unlessthatstatushas with controllingpowerorpartnerofanaudit shareholders orpersonswithcontrollingpowerofthe Company andisnotasubstantialshareholder,person 2 yearspriortotheappointment. companies, majorshareholdersorpersonswithcontrolling power,unlessthatstatushasendedfornolessthan power ofanentitythathasabusinessrelationshipwith theCompany,parentcompany,subsidiaries,associated judgment. Inaddition,theindividualmustnotbe/havebeen asubstantialshareholderorpersonwithcontrolling companies, majorshareholdersorpersonswithcontrolling power,inawaythatmayhinderone’sindependent as managementorthosehavingcontrollingpoweroverthecompanysubsidiaries. well asspouseofchild,withmanagement,majorshareholderscontrollingpowerorindividualstobeproposed subsidiary withthesameparentcompany.) authority thatisamajorshareholderorcontrollingpersonoftheCompany.(Samelevelsubsidiariesmeaning This restrictionshallnotapplytoanindependentdirectorwhohasbeenacivilservantoradvisorgovernment or personswithcontrollingpower,unlessthatstatushasendedfornolessthan2yearspriortotheappointment. the Company,parentcompany,subsidiaries,associatedcompanies,samelevelmajorshareholders de shares heldbyrelatedpersonsoftheindividualindependentdirectors.(Relatedmeaningchildrenas 2 Independent DirectorsarewhonotinvolvedinmanagementoftheCompany,subsidiaries,associates Non-Executive Directorsarewhonotinvolvedfull-timeinthemanagementofCompanynor Executive Directorsarewhoinvolvedfull-timeinthemanagementofCompanyandreceivea The BoardofDirectorsiscomprised15members,7thosebeingExecutiveand8Non-Executive  ų Executive Directors uali ned inArticle258oftheSecuritiesandExchangeAct.) ų cations ofIndependentDirectors,whichtheCompanyhassetaccordingtoregulationsSEC, ų rm whichemploysauditorsoftheCompany,parentcompany, ų nancial advisor,whoreceives an ų liates. Thisincludes 69 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 70 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e Authority ofDirectorsandManagementareclearlyde 2. TheCompanyhasdeterminedthattheChairmanofBoardmustnotbeamemberNomination and 1. Presently,theChairmanofBoardDirectorsdoesnotparticipateinmanagementCompany.The Separation ofPositions through acollectivedecision. Company, subsidiaries,associatedcompanies,samelevelsubsidiariesorjuristicpersonsthatposeacon 9. Notpossesanyothercharacteristicswhichmayrenderthatpersonincapableofexpressingindependentopinions 8. NotconductinganybusinesswhichisofthesamenatureasorinmaterialcompetitionwiththatCompany 7. IsnotadirectorwhohasbeenappointedasrepresentativeoftheCompany’sdirectors,majorshareholdersor the ExecutiveCommittee.Therefore,managementef the responsibilityofPresidentandmanagementasonlyisassignedsuchtasksbyBoard and At thesametime,BoardofDirectorsshallnotinterferewithday-to-dayoperationsorbusinessactivitiesunder 4. Directorsshould becapableandhave theintentiontolearnabout theCompany’sbusiness, aswellshare 3. Directorsshouldattendevery shareholders’meeting,especiallyDirectorswhohave beenappointedtotheAudit 2. DirectorsshouldattendeveryBoardmeetingaswell as sub-committeemeetings,andraiseimportantquestions 1. Directorsshouldhavesuf page 53oftheAnnualReport,whichincludefollowing : Company, apartfromthedutiesandresponsibilitiesas statedin“ShareholdingStructureandManagement”on Duties ofDirectors Therefore, theCompanyhasnotsetanyof healthcare business,requiringexpertiseandspecializationinordertoclearlyunderstandtheCompany’sbusiness. knowledge andunderstandingofhealthcare,whichisanimportantfactorinselectingdirectors,especially the replacements. Inaddition,wemusttakeintoconsiderationmanagementriskthatmayoccurbecauseoflack of persons withexperienceandknowledgeunderstandingofhealthcare,aswelllimitationsin Term ofDirectorship Furthermore, theCompanyhasclearlyde Directors. Remuneration CommitteesothattheshallbefreetomakedecisionsindependentofBoard raise questionsateachmeeting. policy andstrategies,aswellensurethatBoardmeetingsareheldalldirectorsparticipateindependently Chairman andthePresidentmustnotbesamepersonsothatshallactimpartiallyindetermining with regardstotheCompany’soperations. competition withthatoftheCompanyoritssubsidiaries. than 1%oftotalshareswithvotingrightsanycompanywhosebusinessisthesamenatureasorinmaterial or itssubsidiaries,norbeasubstantialpartner,executivedirector,staff,employee,salariedadvisor,holdmore a shareholderwhoisrelatedpersontomajorshareholder. opinions independently, devotetimetothe Companyasneededand showinterestintheimportant issues. suggestions fromtheshareholders. Committee, inordertoanswer andprovideexplanationtotheshareholders’queries, aswellacknowledge conduct andoperations. to protectandmaintaintherightsinterestsofshareholders andstakeholderstoensureproperbusiness may carryoutdutiesef Independent Directorsmaybeassignedbytheboardoftomakedecisionsregardingoperations The BoardofDirectorsshallmeetregularlyeachmonthtomonitorandsupportstrategicpoliciestheCompany. Each directorhasthedutyandresponsibilityindetermining andmonitoringtheoperationalpoliciesof In principal,directorsshouldnotserveforalong,continuousperiodoftime.However,thereisshortage ų ciently. ų cient accessto ų ned thedutiesandauthorityofalllevelsmanagement. ų cial limitationsonthetermofdirectors. ų nancial informationandotherbusinessso thathe/she ų ciently respondstothepowerandresponsibilityofPresident. ų ned andseparated ų Ŵ nding suitable ict ofinterest 5. IndependentdirectorsshouldsubmitalettertotheCompanycon accounting and the Company.Presently,twoofAuditCommitteemembersareknowledgeableandhavedirectexperiencein compliance withlawsondisclosureanddeterminingriskmanagementdealingthebusiness systematic monitoringofbusinesspractices,ensuringef 5.2.1 AuditCommittee 5.2 Sub 7. AnyotherdutiesoftheDirectorsasstipulatedinnoti 6. Directorsmustsubmitandupdatetheirpersonalstakereportchangesinsecuritiesheldbyhim/her,his/her by externalauditorswillresultinjustandef listed onthestockexchangeasde for theentireyear.TheCompanyhashiredanexternalcompany,whichislicensedandquali after eachmeeting. The AuditCommitteewillreporttheactivitiesofinternalauditorsatBoardDirectors’meetingimmediately that supportnormalbusiness activitiesoftheCompanywithinagivenmonetarylimit. to theBoardofDirectorsas wellashavetheauthoritytoapprovenormalbusiness transactionsor set plans.Inaddition,theExecutive Committeeshallconsiderreportsbymanagement thataretobepresented has theresponsibilitytosuperviseandensurethat Companyanditssubsidiariesactinaccordancewiththe made thedecisiontoappointExecutiveCommittee. TheCommitteeiscomprisedof5executivedirectorsand and inordertoensurethattheCompanyfollowsstrategy, goalsandplanssetfortheyear,BoardofDirectors 5.2.3 ExecutiveCommittee President. appropriate remunerationfortheBoardofDirectors,sub-committee members,andtheChiefExecutiveOf Chief ExecutiveOf of theCompanyforbothreplacementsdirectorswho haveretiredandnewdirectorpositions,aswellthe who donottakepartinmanagementandhavethedutytoseekquali to appointtheNominationandRemunerationCommittee.TheCommitteemustbemainlycomprisedofdirectors 5.2.2 NominationandRemunerationCommittee auditing theCompany. Company andsubsidiaries.Thisistoensurethatauditorsareableactindependentlywithoutimpediments in ų without management,toenquireabouttheimportantrisksthatmayoccurfrom the Company, theChiefFinancialOf nancial statusorlimitations,whichtheauditorhasfoundinprocessofauditing to theCompany’sde Board ofDirectors’meeting. spouse aswellchildrenunderjuristicage(ifany)toshowtransparencyandmustreportanychangesthe after suchappointment. The AuditCommitteeisgrantedfullauthoritybytheBoardofDirectorstocarryoutitsduties,whichinclude In planninginternalaudits,theAuditCommitteewillhaveauditof At AuditCommitteemeetingsthatdealwiththe With therapidgrowthofCompanythroughmerger withPhyathaiandPaoloHospitalGroupsin2011 In ordertocomplywithgoodcorporategovernanceoflistedcompanies,theBoardDirectorspassedaresolution ų nancial statementswithmanagement,theAuditCommitteeshallmeetaccountingauditorsseparately,  Committees ų nance. ų cer andthePresident.Furthermore,Committee shall settheguidelinestodetermine ų nition, onthedaythathe/shehasacceptedappointmenttopositionandeachyear ų cer andtheAccountingDirectorwillbothbeinattendance.Priortomeetingson ų ned bytheSEC,tocarryoutinternalaudit.We believe thatinternalaudit ų cient reportingofthefactsastheyhaveindependenceand ų nancial statementsanddisclosureof ų cations, actsorlawsgoverningtheCompany. ų cient andstrictinternalcontrolmeasures,ensuring ų rm thathe/sheistrulyindependent,according ų ed candidatesfornominationasdirectors ų cers plantheauditofCompany ų ų nancial statementsorthe nancial statementsofthe ų ed inauditingcompanies ų nancial reportsofthe ų nances of Ŵ ų exibility. cer and 71 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 72 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e the BoardofDirectors’ meetingfromthe4/2012 meetingonwards. Note : representative shallreporttheresultofmeetingtoBoardDirectorsatnextmeeting. to accomplishthedutiesassigned.Aftersub-committeemeetings,Chairmanofcommitteesoranappointed The meetingsofthetwosub-committeesareheldasdeemedappropriateandwhenopportunityallowsinorder minutes areinaccordancewiththemeetingresolutions. sent totheDirectorswithin14daysfromdayofmeetingsothattheymayreviewandensure the directors suf send meetinginvitationsandtheagendaatleast7businessdaysinadvanceofeachordertoallow will includecontinuingagendastofollowuponanyassignmentsfrompriormeetings.TheCompanySecretaryshall held ontheWednesday priortotheBoardmeeting.Theagendaofeachmeetingwillalsobesetinadvanceand The meetingsaretobeheldonthelastWednesday ofeachmonthwiththeExecutiveCommitteemeetingtobe Directors areallinformedofthemeetingsinadvanceandcanarrangetheirschedulestoaccommodatemeetings. 5.3 BoardofDirectorsMeetingsandSub-Committee from theshareholders’meetingasstatedinArticlesofCompany. matter. TheapprovalauthorityoftheExecutiveCommitteedoesnotincludeothermatterswhichrequire with therulesandregulationsofStockExchangeThailandorotherrelatedonsuchparticular and regulationsoftheStockExchangeThailandorotherrelatedregulations.TheCompanymustactinaccordance connected transactionsandpurchase/saleofimportantassetsthelistedCompanyinaccordancewithrules interest, stakeoranyotherformsofcon 15. Mr.ThongchaiJira-alongkorn 14. Miss.KanoknujLekvichit 13. Mr.SripopSarasas 12. Dr.SomchaiSujjapongse 11. Mr.ChavalitSetmeteekul 10. Mr.ChatreeDuangnet,M.D. 9. Mr.ThavatvongThanasumitra 8. Prof.(Emeritus)SantasiriSornmani,M.D. 7. Mr.PraditTheekakul 6. Mr.ChirotchanaSucharto,M.D. 5. Mr.PongsakViddyakorn,M.D. 4. Mr.PrasertPrasarttong-Osoth,M.D. 3. Mr.WichaiThongtang 2. Mr.ChuladejYossundharakul, M.D. 1. Prof.(Emeritus)ArunPausawasdi,M.D. In 2012,themeetingsofBoardDirectorsandsub-committeescanbesummarizedasfollows: The meetingsoftheAuditCommitteeandNominationRemunerationarenotsetinadvance. The CompanyhassetthedatesforBoardofDirectors’meetingsinadvanceentireyearsothat The approvalauthorityoftheExecutiveCommitteecannotbeusedwithpersonsthatmayhavecon (1) AppointedattheAnnualGeneral Shareholders’Meetingin2012on20thAprilasDirectorof theCompanyandattended ų cient timetoreviewtheinformationpriorattendingmeeting.Theminutesofmeetingsare Director’s Name (1) Ŵ ict withtheCompanyorsubsidiaries.Suchauthorityalsodoesnotinclude Independent Director Independent Director Independent Director Independent Director 2 1 nd st ViceChairman ViceChairman Chairman President Director Director Director Director Director Director Director Title Attendance atmeetings 15/16 16/16 14/16 16/16 16/16 16/16 15/16 16/16 15/16 16/16 15/16 10/10 16/16 16/16 9/16 Ŵ ict of Note :TheMeetingoftheBoardDirectors5/2012heldon30 Company Secretary’sattendance intheDirectorCerti Board ofDirectorsfortheir acknowledgementandpractice.Inconjunction,the Companyalsosupportedthe In somecases,theCompany mayinviteexpertsinspeci or guidelinestothePresident forfurtherreportingtotheBoardofDirectorstheir acknowledgement andpractice. guidelines oftheStockExchangeandSEC. also encouragesdirectorstoattendtrainingcourseson amendmentsandupdatesoftheregulations,policies have attendedandpassedtheDirectorCerti and willenablethemtousetheknowledgeforcontinuous goodcorporategovernance.Fifteenofthedirectors (IOD). Theprogramswillprovidethedirectorswithknowledge andunderstandingofef Certi 5.5 Directors’KnowledgeEnhancement management. TheperformanceislinkedtotheoperationalresultsofCompanyandindividualaccomplishments. in theguidelinesde to thoseofcompaniessimilarsizeinthesameindustry. determining theremunerationofdirectorstocorresponddirectors’dutiesandresponsibilitiesbycomparing 5.4 DeterminingRemunerationforDirectorsandExecutives .S5IPOHDIBJ+JSBBMPOHLPSOBT&YFDVUJWF%JSFDUPSTSFQMBDJOHUI the Meeting4/2012onwards. 9. Mr.SripopSarasas 8. Dr.SomchaiSujjapongse 7. Mr.ChavalitSetmeteekul 6. Prof.(Emeritus)SantasiriSornmani,M.D. 5. Mr.ThongchaiJira-alongkorn 4. Mr.PraditTheekakul 3. Mr.ChatreeDuangnet,M.D. 2. Mr.ChuladejYossundharakul, M.D. 1. Mr.PrasertPrasarttong-Osoth,M.D. The Companyhasassignedthe CompanySecretarythetaskofsummarizingsigni The Companyhasthepolicytoencouragedirectorsof theCompanyandsubsidiariestoattendDirector As forremunerationofexecutives,theCompanywillawardbyperformanceevaluationasstated Presently, theCompanyhasappointedNominationandRemunerationCommitteetaskofjustly ų cate Program(DCP)andtheDirectorAccreditation (DAP)organizedbytheThaiInstituteofDirectors Director’s Name ų ned bytheBoardofDirectorsandHumanResourcesDepartmentforeachlevel Member/Nomination andRemuneration Member/Nomination andRemuneration Independent Director/AuditCommittee Independent Director/AuditCommittee Independent Director/Nominationand Nomination andRemunerationCommittee Independent Director/Chairmanofthe Executive Director/Nominationand Remuneration CommitteeMember Remuneration CommitteeMember Audit Committee/Chairmanofthe Chairman ofExecutiveCommittee ų cate Programand/ortheDirectorAccreditationProgram. The Company Committee Member Committee Member Executive Director Executive Director Executive Director ų PTFUIBUIBESFUJSFEBOEųOJTIFEUIFJSUFSN CPUI%JSFDUPSTBUU Title cate Programin2012. ų th c May2012appointedMr.ChuladejYossundharakul, M.D.and ų elds topresentsuchinformation orguidelinestothe Executive Committee Attendance at meetings 10/10 10/10 9/10 5/7 7/7 ų cant changestotheregulations ų cient corporategovernance Audit Committee Attendance at meetings 8/8 3/8 8/8 Committee meetings Nomination and Attendance at Remuneration 2/2 1/2 2/2 2/2 FOEFE 73 A n n u a l R e p o r t 2 0 1 2 G o o d C o r p o r a t e G o v e r n a n c e 74 A n n u a l R e p o r t 2 0 1 2 C o n n e c t e d T r a n s a c t i o n s Connected shareholders’ meetingforapproval. For largetransactionsthathaveexceptionalconditions,theBoardofDirectorsshallproposetransactionto the medium tolargenormalbusinesstransactionsandsmallthathaveexceptionalconditions. with thesameconditionsastransactionsexternalparties.TheBoardofDirectorsshallapproveincase of normal business.Therefore,managementshallconsiderapprovingsmalltransactionsandbusiness 1. NormalBusinessTransactions orTransactions SupportingNormalBusiness resolution oftheBoardDirectors.Thetransactionscanbecategorizedinto2typesasfollows: there hasnotbeenanytransferofbene the transactionswithpersonscon has norelatedpersonthat holds morethan10percentoftheremainingshares.The BoardofDirectors’Meeting than 50percentofthesharesoutstanding.The 2. FinancialAssistance Company’s transactionswithexternalparties. normal conditions,whicharepricedorhavefeescharged atthemarketratewithsameconditionsas in principaltoconsiderenteringintonormalbusinessor transactionsupportingnormalbusinesstransactionswith Nature ofTransactions approval inprincipal. normal businessbetweentheCompanyorsubsidiariesandarelatedpersoninfrontofBoardDirectors for bring transactionswithassociatedcompanieswhicharenormalbusinessorsupporting the SecuritiesandExchangeCommissioncirculardated16thJuly2008statethatfor reviewed thetransactionsforyearended31 been approvedinprincipalbytheBoardofDirectorsatMeeting8/2008.Therefore,AuditCommittee,whichhas business dealingsandtheconditionsaresameasthoseofwithexternalparties.Suchtransactionshave The SecuritiesandStockExchangeAct(FourthEdition)AmendmentB.E.2551effective31 Ļ Ļ Ļ The sizeofthetransactionisevaluatedasfollows: The Companyhasmeasuresorproceduresinapprovingnormalbusinesstransactionssupporting The Companyhasthepolicytoprovide Therefore, attheBoardofDirectorsMeeting8/2008on 27 Transactions betweentheCompany orsubsidiariesandapersonwithcon Smalltransactions:transactionswithvalueoflessthanorequaltoBaht1million0.03% Mediumtransactions:transactionswithvalueofmorethanBaht1millionbutless20or Largetransactions:transactionswithvalueofmorethanBaht20millionor3%netassets, whichever ishigher. than 0.03%butnomore3%ofnetassets,whicheverishigher. of netassets,whicheverishigher. Transactions Ŵ ict ofinteresthavethesameconditionsastransactionswithexternalparties, ų ts tothepersonswithcon ų nancial assistancetosubsidiariesinwhichtheCompany holdsmore ų nancial assistanceisprovidedundertheconditionthat subsidiary st December2012and31 th August2008,theBoardgavemanagementapproval Ŵ ict ofinterestandareinaccordancewiththe st December2011,hastheopinionthat Ŵ ict ofinterestarenormalpracticein Ŵ exibility, theCompanymay st August2008and no higherthanthemarketrate. at aratehigherthanthesavingsof to thesubsidiarywithinterestchargedatmarketrate. at themarketrate.Atsametime,ifanysubsidiaryrequirescapital,Companywilltransferexcessliquidity transferred intotheCompany’sbankaccountwillbestatedasshort-termloanfromasubsidiarywithinterestcharged program willtransfermoneyfromthesubsidiary’sbankaccounttoCompany’saccount.The country ataprimerate. as theCompanyiscapableofseekingloansatalowerrate. which islessthantheratesubsidiarywouldbechargediftakingoutaloandirectly. and thenloanthatmoneytothesubsidiaryatarateofnomorethan1%perannumaboveactualcostcapital, provided 2/2008 on26 ų nancial assistancetosubsidiariesundertheaforementionedconditions.Asof31 Bene 2.3 CentralizeLiquidityManagement(CashPooling) Bene 2.2 Guaranteeloansofforeignsubsidiaries Bene 2.1 Loanstosubsidiaries ų ų ų t derived t derived ų t derived nancial assistanceinthefollowingforms: th February2008andMeeting5/2008on28 Thesubsidiarycantakeoutaloanatratelowerthanborrowingdirectlyfrom To enabletheforeignsubsidiary toseekaloandirectlyfrom ForliquiditymanagementwithintheGroup,companieswithexcesswillreceiveinterest The Companywilltakeoutaloaninthemoneymarketorfrom ų nancial institutions,whilecompaniesneedingcapitalcanborrowatarate Attheendofbusinessday,liquiditymanagement th May2008resolvedthattheCompanyshallprovide ų nancial institutioninthatparticular st December2012,theCompany ų ų nancial institution nancial institution 75 A n n u a l R e p o r t 2 0 1 2 C o n n e c t e d T r a n s a c t i o n s 76 A n n u a l R e p o r t 2 0 1 2 C o n n e c t e d T r a n s a c t i o n s

(Unit : baht) Loan to Subsidiaries Guarantee Cash Pooling Accure Relationship Interest Obligation Interest Long term loan Short term loan Advance receivable Total debt 1 Bangkok Hospital Pattaya Co., Ltd. Company holds 97.3% - - - - - N/A 418,118,951 1,628,165 2 Bangkok Hospital Rayong Co., Ltd. Company holds 100.0% - - - - - N/A 26,520,305 131,654 3 Bangkok Hospital Had yai Co., Ltd. Company holds 98.8% - - - - - N/A 60,312,687 186,908 4 Wattanavej Co., Ltd. Company holds 99.7% - - - - - N/A 148,635,103 374,035 5 Bangkok Hospital Samui Co., Ltd. Company holds 100.0% - - - - - N/A 55,943,321 135,534 6 Bangkok Hospital trat Co., Ltd. Company holds 99.8% - - - - - N/A 35,442,759 94,235 7 Bangkok Hospital Ratchasima Co., Ltd. Company holds 90.4% 223,900,000 21,345,798 149,251 245,395,049 N/A - 14,593 - 8 Bangkok Hospital Phuket Co., Ltd. Company holds 99.7% - - - - N/A 188,237,152 422,108 - 9 Bangkok Hosital Prapradaeng Co., Ltd. Company holds 79% - 43,677,651 149,234 43,826,885 N/A - - - 10 Samitivej Plc. (SVH) Company holds 95.8% - - - - N/A 84,566,865 181,925 11 BNH Medical Center Co., Ltd. Company holds 91.5% - - - - - N/A 83,978,040 409,286 12 Prasit Patana Plc. (PPCL) Company holds 98.3% 3,327,020,000 - - 1,595,147 3,328,615,147 N/A 749,946,256 1,847,740 - 13 Paolo Medic CO.,LTD. Company holds 99.9% 508,540,000 - 243,820 508,783,820 N/A 122,760,472 447,201 14 Siam Medical Co., Ltd. Company holds 85.7% - - - - - N/A 93,171,851 226,851 15 Thai Medical Center PLC. Company holds 99.8% 559,000,000 - - 268,014 559,268,014 N/A 110,618,174 275,450

16 Paolo Samut Prakran Co., Ltd. Company holds 93.3% 101,270,000 - - 48,554 101,318,554 N/A 125,342,079 338,470 17 Ankor Pisith Co., Ltd (1) Company holds 80% 38,107,125 - - 12,746 38,119,871 USD 3,898,357 - - 18 Phnom Penh Medical Services Co., Ltd.(2) Company holds 100.0% 354,220,963 - 12,573,905 366,794,868 N/A - - 19 Royal Rattanak Medical Services Co., Ltd.(3) Company holds 70.0% 58,921,976 - - 439,863 59,361,839 N/A - - 20 National Healthcare Systems Co., Ltd. Company holds 74.0% - - - - - N/A 43,475,988 163,960 21 Bio-Molecular Laboratories (Thailand) Co., Ltd. Company holds 95.0% - - - - - N/A 4,943,161 21,367 22 Greenline Synergy Co., Ltd. Company holds 100.0% 100,000,000 - 54,795 100,054,795 N/A - - 23 BDMS Training Co., Ltd. Company holds 100.0% - 11,700,794 - 17,497 11,718,291 N/A - - 24 A.N.B. Laboratory Co., Ltd. Subsidiary holds 100.0% - - - - N/A 195,363,379 547,395 25 Bankok Premier Life Insurance Co., Ltd. Company holds 100.0% - - - - N/A - - 26 Bangkok Hospital Udon Co., Ltd. Company holds 100.0% 54,000,000 130,374,543 - 473,593 184,848,136 N/A - - 27 Bangkok Hospital Chaingmai Co., Ltd. Company holds 100.0% - - - N/A 233,748,005 506,768 - 28 Asia International Healthcare Co., Ltd. Company holds 100.0% - - - N/A 13,500,000 - - 29 Bangkok Hospital Khao Yai Co., Ltd. Company holds 100.0% - - - N/A 2,000,000 - 5,324,980,064 207,098,786 - 16,026,419 5,548,105,269 USD 3,898,357 2,796,624,548 7,953,645 Remarks (1) Debt for loan in foreign currency US$ 1.25 million (equal to Baht 38.11 million) (2) Debt for loan in foreign currency US$ 11.52 million (equal to Baht 354.22 million) (3) Debt for loan in foreign currency US$ 1.98 million (equal to Baht 58.92million) 3. Personswithmutualinterestholdingsharesinsubsidiariesandassociatedcompaniesover5%of as apersonalappointment. 9. Mrs.NarumolNoi-am 8. Miss.KananujLekvichit 7. Mr.PraditTheekakul 6. Mr.ChatreeDuangnet,M.D. 5. Mr.ChirotchanaSucharto,M.D. 4. Mr.PongsakViddyakorn,M.D. 3. Mr.WichaiThongtang 2. Mr.ChuladejYossundharakul, M.D. 1. Mr.PrasertPrasarttong-Osoth,M.D. Related personswhoaredirectorsandexecutivemanagementasfollows: the audited and/or theshareholders’meeting,ascasemaybe. professional expertisetoprovideopiniononsuchtransactionstheAuditCommitteeand/orBoardofDirectors in consideringtheconnectedtransactions,Companyhaspolicytoappointindependentpersonswith task ofensuringthatconnectedtransactionsarefair.InthecaseAuditCommitteedoesnothaveexpertise related noti shall actinaccordancewiththerulesandregulationsofSecuritiesExchangeActaswellother Policy andFutureRelatedTransactions Financial assistance debtors, etc. business suchascreditors,and Transactions supporting general transfer, andlabanalysis,etc. such asmedicalcare,patient Normal businesstransactions with votingrights: The DirectorwasappointedtothesubsidiaryasarepresentativeofCompanymajorshareholder,not The CompanyhasdisclosedtheconnectedtransactionsinNote10“ConnectedTransactions” innotesto For othertransactionsorconnectedasde - None rnato OutlookandPolicy Transaction ų ų cations. Furthermore,forinvestorprotection,theCompanyhasassignedAuditCommittee nancial statements,whichhavebeencerti Capital MarketCommittee. rules andregulations oftheStockExchangeThailand and/orthenoti Company. Such transactionsmustcomplywith the SecuritiesandExchangeAct and/or percentage ofshareholding.The ratemustnotbelessthanthecostofcapital Company shallgivegreaterimportance totheabilityrepayloanthan for thebene the Groupbycentralizingmoney managementforsuitablecostofcapitalandef The Companyhasthegoaland policy toprovide subsidiaries engagesinwithothercounter-parties,underthesame circumstances. and conditionsmustnotdifferfromthoseoftransactionsthatthe Companyand fee ormusthaveareferencerateavailable.Theconditionsofpayment andotherterms transaction supportsnormalbusiness,suchmusthave competitivepriceor companies, orbetweentheCompanysubsidiaryandarelated personandsuch materials andmedicalsupplies,procurement,hiring,construction contractbetweenthe In thecasethatCompanyandsubsidiariesengageinsaleof goods andservices,raw counter-parties, underthesamecircumstances. those theCompanyandsubsidiarieschargeothercustomers,whether individualsor other businessconditions,shallbeequalorhavesimilarconditions orareindifferentfrom fees atthemarketrate.Themedicalserviceandconditionsofpayment,aswell The Companyhasthepolicytoallowandsubsidiarieschargeeachother ų t oftheorganizationasawhole. Indeterminingtheloanamount, ų ed byanauditor. ų ned intheSecuritiesandExchangeAct,Company ų nancial assistancetosubsidiaries within ų cations ofthe ų ciency 77 A n n u a l R e p o r t 2 0 1 2 C o n n e c t e d T r a n s a c t i o n s 78 A n n u a l R e p o r t 2 0 1 2 M a n a g e m e n t D i s c u s s i o n a n d A n a l y s i s Management Summary ofconsolidatedoperatingresults Hospital, Nawamin). Limited (PaoloMemorialHospital,Chokchai4)andThaiMedicalCentrePublicCompany Phaholyothin), PaoloSamutprakarnCompanyLimited(PaoloMemorialHospital,Samutprakarn),SiamMedical Limited andSrirachaNakhonHospitalPublicCompany(PhyathaiSriracha). consists ofPhyathai1HospitalCompanyLimited,23 and consolidatedtheperformanceof: Network PublicCompanyLimited(“HealthNetwork”).Asaresult,thehasbecomemajorshareholder - - Since April1,2011,theCompanyhadcompletelyacquiredandacceptedEntireBusinessTransfer ofHealth The PaoloMemorialHospitalGroup The PhyathaiHospitalGroup, Pro Non -RecurringItemsGainonfairvalueadjustmentofinvestments Normalized Pro Non-controlling interestsofthesubsidiaries Taxes Finance expenses EBIT Income fromassociatedcompanies Dividend income Interest income Operating Pro Total OperatingExpenses&Depreciation Administrative andmanagementbene Cost ofhospitaloperationsandothers Total OperatingIncome Other income Revenue fromsalesofgoodsandfood Revenues fromhospitaloperations ų t toequityholdersoftheCompany ų t ų t Discussion andAnalysis which hasPrasitPatanaPublicCompanyLimited(“PPCL”)asthemajorshareholder, ų t expenses consists ofPaoloMedicHospitalCompanyLimited(PaoloMemorialHospital, (38,207) (29,239) 45,994 2012 (1,521) (8,969) 44,307 7,937 6,142 8,827 7,787 1,795 1,171 (315) (849) 968 516 17 57

for theyearendedDecember31,2012 (30,900) (23,675) 36,726 2011 (1,456) (7,224) 35,224 4,386 3,907 6,374 5,826 1,009 (241) (770) 479 382 104 492 63 (Unit :THBmm) % yoy (84)% (10)% 154% 37% 34% 24% 25% 57% 81% 10% 24% 23% 31% 16% 26% 4% 5% - 2012 ConsolidatedPerformance Remark :-*Excludingnon-recurringitems Pro - TheCompanyanditssubsidiariesreportedcostofhospital operationsandothers(includingdepreciation 2. Operatingexpenses - OtherincomeswereBaht516million,anincreaseof5% from2011. - RevenuefromsalesofgoodsandfoodwereBaht1,171 million,anincreaseofBaht161millionor16%from2011, - Duringthisyear,Thaiandinternationalpatientsgrew15% - Revenuefromhospitaloperationsduring2012wereBaht44,307million,anincreaseof9,083millionor 26% primarily dueto: 1. Operatingincome is asfollows:- Baht 7,937million;anincreaseof3,551million,or81%from2011.Thesummarized2012consolidatedperformance Hospital Group sinceJanuary 1, 2011 1 For comparative purpose,growth oftherevenue from hospitaloperations arecalculated assumingconsolidation ofPhyathaiHospi type ofpatientperspective,outpatientrevenuesincreased by17% proportion betweenThaiandinternationalpatientstochangefrom74%:26%in201172%28%2012.From and alsoexperiencednurses tomeettheexpandingneedsofnetworkhospitals. hospital operationstogether withtheriseinclinicalstaffexpensesasaresultofan increaseinnewlyrecruited consolidation ofPhyathaiHospital GroupandPaoloMemorialHospitalGroup,anorganic growthinrevenuefrom amortization) ofBaht29,239 millionin2012,anincreaseby23%from2011.An wasduemainlytothe as aresultofgrowthinrevenuesfromA.N.B.Laboratories CompanyLimited. from 2011. Phyathai HospitalGroupandPaoloMemorialstartedfrom2Q11onwards. rising healthcarein from 2011.Thegrowthwasdrivenbyincreaseinnumberofoutpatientsandinpatientsacrossournetworkhospitals, ų Operating incomeduring2012wereBaht45,994million,anincreaseof9,268millionor25%from2011, For theyearendedDecember31,2012,Companyanditssubsidiariesrecordedaconsolidatednetpro tability Analysis Basic earningspershare(baht) Basic earningspershare*(baht) Net pro Net pro EBIT Margin* EBIT* (THBmm) EBITDA margin* EBITDA* (THBmm) ų ų t margin t margin* Ŵ ation togetherwithanincreaseinpatientacuity.Moreover,theconsolidationofrevenuesfrom 1 and24% 1 1 from2011respectivelyresultingintherevenue whereasinpatientrevenuesincreasedby18% 10,737 2012 17.3% 13.4% 19.2% 23.3% 8,827 5.14 3.97 2011 11.9% 10.6% 17.4% 23.2% 6,374 8,534 3.00 2.67 tal Group and PaoloMemorial % yoy 71% 49% 38% 26% ų t of 1 79 A n n u a l R e p o r t 2 0 1 2 M a n a g e m e n t D i s c u s s i o n a n d A n a l y s i s 80 A n n u a l R e p o r t 2 0 1 2 M a n a g e m e n t D i s c u s s i o n a n d A n a l y s i s Company Limitedandtheadditional investmentinUdonPattana(1994)Co.,Ltd. of investmentstotalingBaht 479millionasaresultof“StepAcquisition”fortheacquisition ofPrasitPatanaPublic statements ofincome. required torevaluetheoriginalstakefromcarrying costtothefairvalueandrecognizedifferencein Thai FinancialReportingStandard(“TFRS3”)–Business Combinations(effectivein2011)whichtheCompanyare value adjustmentofinvestmentinBHtotalingBaht1,795 millionfromthis“StepAcquisition”inaccordancewith increased itsshareholdinginBHto23.88%.During1Q12, theCompanyrecordednon-recurringitemsforgainonfair shareholding, asofMarch31,2012,resultinginBHtobecome anassociatedcompany.However,in2Q12,theCompany of Baht2,234.9million,representing6.06%shareholding. Asaresult,theCompanyholdstotally20.28%of 5. Non-recurringitems - Taxes in2012wereBaht1,521million,anincreasefrom1,456million2011,duemainlyto - FinanceexpensesincreasedtoBaht849millionorby10%from2011duemainlyanissuance of - ShareofincomefrominvestmentsinassociatedcompanieswasBaht968million,increasedby154%2011, - DividendincomewasBaht17million,decreasedby84%from2011sincetheCompanyrecordeddividend - InterestincomewasBaht57million,decreasedslightlyby10%from2011 4. Others Hospital Groupandtheexpansionofexistingnetworkhospitalstoaccommodatepatientgrowth mainly totheconsolidationofproperty,premisesandequipmentfromPhyathaiHospitalGroupPaoloMemorial 3. Depreciationandamortizationexpenses 26% from2011.EBITDAmarginalsoincreasedslightly23.2%in2011to23.3%2012. - Theadministrativeexpenses(includingdepreciationandamortization)wereBaht8,969millionin2012,anincrease pre-tax pro debentures andanincreaseinlong-termloansfrom investment inBHofBaht498million. due mainlytoshareofincomefrominvestmentinRAMBaht431milliontogetherwith in BHto23.88%andbecomesourassociatedcompany. of Baht104millionfromaninvestmentinBHduring4Q11.TheCompany,subsequently,increaseditsshareholding increase ofoutsourcedcleaningandsecuritiesservicestogetherwithaninrepairmaintenanceexpenses. together withtheriseinnon-clinicalstaffexpense,anincreasegeneralsupportexpensesmainlyfromwages by 24%from2011,duemainlytotheconsolidationofPhyathaiHospitalGroupandPaoloMemorial During 2Q11,theCompany and itssubsidiariesrecordednon-recurringitemsforgain onfairvalueadjustment During 1Q12,theCompanyadditionallypurchasedordinarysharesofBHfortotal44.2millionshares,amount The depreciationandamortizationexpenseswereBaht2,951millionin2012,anincreaseby9%from2011due EBITDA; consequently,increasedfromBaht8,534millionin2011to10,7372012,by ų t, nettedwiththereductionincorporateincometaxrateto23%. ų nancial institutions. As a result, if excluding non-recurring items which are gain on fair value adjustment of investments as previously mentioned, net proųt was Baht 6,142 million, an increase of Baht 2,235 million or 57% from 2011. Net proųt margin, excluding non-recurring items, increased from 10.6% in 2011 to 13.4% in 2012 and the basic earnings per share increased from Baht 2.67 in 2011 to Baht 3.97 in 2012 or grew 49% from 2011. If including the non-recurring items, the Company and its subsidiaries recorded a consolidated net proųt of Baht 7,937 million in 2012; an increase of Baht 3,551 million, or 81% from 2011. Net proųt margin signiųcantly increased from 11.9% in 2011 to 17.3% in 2012 and the basic earnings per share increased from Baht 3.00 in 2011 to Baht 5.14 in 2012 or grew 71% from 2011.

Comprehensive income statements (Unit : THB mm) 2012 2011 % yoy Proųt for the period 8,252 4,627 78% Gain(Loss)on change in value of available-for-sale investments 5 1,372 (100)% Reversal of gain on change in value of available-for-sale investments (1,372) - N/A Actuarial loss (132) (3) N/A Gain on revaluation of land 634 9 N/A Exchange differences (35) 51 (168)% Share of other comprehensive income from associated companies 114 65 75% 81 Total comprehensive income for the period 7,467 6,121 22%

Total comprehensive income for 2012 was Baht 8,252 million, an increase by 78% from 2011 from 2011, mainly attributable to higher proųt for the period as mentioned earlier netted with the reversal of gain on change in value of available-for-sale investments due to transfer of investment in BH to an associated company for Baht 1,372 million together with the actuarial loss of Baht 132 million. In addition, as mentioned earlier, the Company and its subsidiaries recognized gain on revaluation of land of Baht 634 million. The Company also has recognized share of other comprehensive income from associated companies of Baht 114 million which was mainly as a result of gain on change in value of available-for-sale investments of RAM. A n u a l R e p o r t 2 0 1 M a n g e m t D i s c u o d A l y

Consolidated ųnancial status (Unit : THB mm) Dec-12 Dec-11 Chg % Total Assets 68,461 58,792 16% Total Liabilities 29,634 25,375 17% Total equity attributable to company's shareholders 37,296 31,995 17% Total shareholders' equity 38,827 33,417 16% 82 A n n u a l R e p o r t 2 0 1 2 M a n a g e m e n t D i s c u s s i o n a n d A n a l y s i s payment ofBaht 1,700million. 6,618 million,nettedwithrepayment oflong-termloansfrom loans from premises andequipmentfor Baht5,791million. from investmentsinsubsidiaries,associatesandothercompanies ofBaht4,267millionandthepurchaseproperty, during theyear. are asfollows:- As aresult,cashandequivalentsattheendofyearwasBaht3,590million.Details equivalent ofBaht286million,withthecashandequivalentsatbeginningyear3,876million. Liquidity of Baht1,700million. the yearended2011.Thisisduemainlytototalcomprehensiveincomeduring2012nettedwithdividendpayment December 31,2012. December 31,2012whilenetdebttoequityalsoremainsunchangedat0.4xasof2011and of our networkhospitals.However,totaldebttoequityremainsunchangedat0.5xasofDecember31,2011and of institutions amountingtoBaht1,684millionpartly million, anissuanceofdebenturesamountingtoBaht600millionandincreaseinlong-termloansfrom or 17%fromDecember31,2011,duemainlytoanincreaseinshort-termloans respectively. and equipmentforBangkokHospitalUdon,ournewnetworkhospitalsintheNorthNortheastofThailand patient growthtogetherwiththepurchaseoflandforBangkokHospitalChiangmaiandacquisitionproperty,premises and equipmentofBaht3,722millionasaresulttheexpansionexistingnetworkhospitalstoaccommodate stake inBHresultingtobecomeanassociatedcompany.Inadditional,thereisincreaseproperty,premises with decreaseinotherlong-terminvestmentsofBaht4,554million.Thesechangeswereasaresultadditional December 31,2011,duemainlytoanincreaseininvestmentassociatedcompaniesofBaht10,048million,offset and itssubsidiariesreportedtotalassetsofBaht68,461million,anincrease9,669millionor16%from Net cashfrom Net cashusedininvestingactivitieswereBaht9,716million. Theinvestingactivitiesduringtheyearweremainly Net cash For theyearendedDecember31,2012,Companyanditssubsidiarieshadnetdecreaseincash Total consolidatedshareholders’equitywasBaht38,827million,increasedby5,410millionor16%from Total consolidatedliabilitiesasof December31,2012wereBaht29,634million,anincreaseof4,259million The consolidated Cash andcashequivalentsatendoftheyear Cash andcashequivalentsatbeginningoftheyear Net increase(decrease)incashandequivalents Net cashfrom Net cash(usedin)investingactivities Net cashfromoperatingactivities ų nancial institutionsofBaht995 million,anincreaseinlong-termloansfrom Ŵ ows fromoperatingactivitieswereBaht8,409million, resultingmainlyfromanincreaseinpro ų nancing activitieswereBaht 1,020millioncomprisingmainlyfromanincreaseinnet short-term ų nancial positionoftheCompanyanditssubsidiariesasDecember31,2012:The ų nancing activities ų nance theadditionalinvestmentinBHandexpansionof ų nancial institutionsofBaht4,931 millionanddividend ų nancial institutionsofBaht994 ų nancial institutionsofBaht (9,716) 2012 3,590 3,876 1,020 8,409 (286) Ŵ ow byactivities (Unit :THBmm) ų nancial ų t Auditor’s Remuneration Ernst & Young Ofųce Company Limited has been the auditor of the Company and its subsidiaries since the annual audit in 2005 to the present. In 2012, the Company and its subsidiaries have compensated the auditor as follows: 1. Auditing Fee The Company and subsidiaries paid a total of Baht 17,296,500 in auditing fees, details as follows: (Unit : Baht) Review of 3 quarterly ųnancial statements Annual Audit Fee Total Bangkok Dusit Medical Services Plc. 870,000 1,030,000 1,900,000 37 companies in the Network 5,296,500 10,100,000 15,396,500 Total auditor remuneration 17,296,500

2. Other fees - none - A u d i t o r ’ s R e m n a

83 A n u a l R e p o r t 2 0 1 84 A n n u a l R e p o r t 2 0 1 2 R e p o r t a n d c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 31 December2012 Limited anditssubsidiaries Bangkok DusitMedicalServicesPublicCompany financial statements Report andconsolidated Dear ShareholdersofBangkok DusitMedicalServicesPublicCompanyLimited, bene being: with relatedregulationsandlaws,aswellmitigatecon has aninternalcontrolsystem,evaluatetherisksandensuresuitableef are inaccordancewithaccountingstandardsandhaveaccuratesuf main dutiesandresponsibilitiesoftheAuditCommitteearetoensurethatCompany’s of theAuditCommitteeandMr.SripopSarasasDr.SomchaiSujjapongseasmembersCommittee.The which iscomprisedof3independentdirectors,namelyProfessor(Emeritus)SantasiriSornmani,M.D.asChairman The AuditCommitteehascarriedoutthedutiesasassigned withcareandtothebestofourabilityfor 7. Confer with theauditorwithoutmanagementsothatcanfreelyreportonanyproblemsor 6. Reviewandassessthesuf 5. Considerandheartheinternalauditreportfromauditorsbyengagingancompany Consider approvingtheannualauditplan,reviewinternalprocedures, whichareapartoftheCompany’s 4. 3. Considertransactionswithrelatedpersons,disclosureofpersonsandensurethat 2. Consider andnominatetheauditorfromErnst&Young Of Review the 1. In 2012,theAuditCommitteeheldmeetingsatotalof8timestocarryoutdutiesasassigned,mostimportant The BoardofDirectorsBangkokDusitMedicalServicesPublicCompanyLimitedappointedtheAuditCommittee, ų limitations asaresultoftheaudit.Theauditorhasreported thattherewerenolimitationsofsigni and strategiesoftheCompany. that theinternalcontrolsystemissuitableandsuf ef to theguidelinesofStockExchangeThailand,compliancewithlaws,regulationsandpractices, In addition,theCommitteegaveimportancetosuitablearrangementofShareholders’meetingaccording to theBoardofDirectorsandexecutivemanagementongoodcorporategovernanceinternalcontrols. the auditaccordingtoimportanceofrisksasassessed.TheAuditCommitteeprovidedsuggestions that islicensedbytheOf according tointernationalstandards. management policy,andprovidewrittenapprovalontheinternalauditprocesstobeusedasaguideline acquisitions orsalesofassetsareincompliancewithapplicablelawsandregulations. independence fromtheCompanyandsubsidiaries. the opinionthatpersonnominatedasauditorisquali fee totheBoardofDirectorsforfurtherapprovalbyShareholders’Meeting.TheAuditCommitteeis with accurateandcompletedisclosureofimportantfacts. and beliefthattheaforementioned as reviewedandexplainedbytheauditorexecutivemanagement.TheAuditCommitteeisofopinion t oftheCompany,Shareholdersandallstakeholders. ų ciency inriskevaluationandmitigationofthevariousdepartmentsorganization. ų nancial statementsoftheCompanyandsubsidiaries,beforepresentationtoBoardDirectors, ų ų ce oftheSecuritiesandExchangeCommission.Theinternalauditorscarriedout ciency oftheinternalcontrolsystemsannually.TheCommittee isoftheopinion Report ofthe ų nancial statementswerepreparedaccordingtoaccountingstandards Ŵ icts ofinterestbetweentheCompanyandrelatedpersons. ų cient inriskmitigationaccordancewiththepolicies Professor (Emeritus)SantasiriSornmani, M.D. ų ce CompanyLimitedandtheannualauditing ų Audit Committee ų ed intermsofknowledge,capabilitywith cient disclosure,ensurethattheCompany ų cient riskcontrols,ensurecompliance Chairman ofthe AuditCommittee ų nancial statements ų cance. 85 A n n u a l R e p o r t 2 0 1 2 R e p o r t o f t h e A u d i t C o m m i t t e e 86 T h e B o a r d o f D i r e c t o r s ’ R e p o r t o n i t s A n n u a l R e p o r t 2 0 1 2 R e s p o n s i b i l i t y t o t h e F i n a n c i a l S t a t e m e n t Responsibility totheFinancialStatement The BoardofDirectors’Report accordance withgenerallyacceptedaccountingstandards. ų which theauditorhasreviewedinaccordancewithgenerallyacceptedaccountingstandards.Additionally, the and reasonablybelievesthetrustworthinessofCompany’s damages. accounting informationisrecordedaccuratelyandassetsaresafe-keptinordertopreventfraudorsigni 2012 Form56-1. Committee hasreportedtheseopinionsintheAuditReport2012AnnualandCompany’s with considerationofthesuitableitemstobepresentedandprovidesuf accounting policiesandconsistentlyadheringtothosepolicies.The that the assigned theAuditCommitteetaskofreviewingCompany’s accounting policiesandconsistentlyadheringtothosepolicies,withcarefuldiscretion.TheBoardofDirectorshas fully disclosed,aswellincompliancewithgenerallyacceptedaccountingstandardsbyselectingappropriate practices goodcorporategovernance,thatthe nancial statementsaccuratelyshowthesigni In conclusion,theBoardofDirectorsisopinionthatCompany’sinternalcontrolsystemsatisfactory Furthermore, theBoardofDirectorshasputinplaceanef The BoardofDirectorsrecognizestheimportancedutiesandresponsibilitiesinensuringthatCompany ų nancial statementsareincompliancewithgenerallyacceptedaccountingstandardsbyselectingappropriate ų cant aspectsoftheCompany’s ų nancial statementsinthe2012AnnualReportareaccurateand ų cient internalcontrolsystemtoensurethatall ų nancial statementsasof31 ų ų nancial statementswerecarefullyprepared nancial statementsandhasbeeninformed ų (Mr. PrasertPrasarttong-osoth, M.D.) cient disclosureinthenotes.TheAudit ų on its nancial statusandperformancein st December2012, CEO &President ų cant To theShareholdersofBangkok DusitMedicalServicesPublicCompanyLimited risks ofmaterialmisstatementthe ų from materialmisstatement. Standards. and their position ofBangkokDusitMedicalServicesPublicCompany Limitedanditssubsidiariesasat31December2012, Opinion opinion. by management,aswellevaluatingtheoverallpresentationof evaluating theappropriatenessofaccountingpoliciesusedandreasonablenessestimatesmade the purposeofexpressinganopiniononeffectivenessentity'sinternalcontrol.Anauditalsoincludes the assessments, theauditorconsidersinternalcontrolrelevanttoentity'spreparationandfairpresentation of and planperformtheaudittoobtainreasonableassuranceaboutwhether audit inaccordancewithThaiStandardsonAuditing.ThosestandardsrequirethatIcomplyethicalrequirements Auditor's Responsibility or error. enable thepreparationof with ThaiFinancialReportingStandards,andforsuchinternalcontrolasmanagementdeterminesisnecessary to Management's ResponsibilityfortheFinancialStatements Public CompanyLimitedforthesameperiod. explanatory information,andhavealsoauditedtheseparate holders’ equityandcash 31 December2012,andtherelatedconsolidatedstatementsofincome,comprehensivechangesinshare- Company Limitedanditssubsidiaries,whichcomprisetheconsolidatedstatementof nancial statements.Theproceduresselecteddependontheauditor'sjudgment,includingassessmentof An auditinvolvesperformingprocedurestoobtainevidenceabouttheamountsanddisclosuresin In myopinion,the I believethattheauditevidencehaveobtainedissuf My responsibilityistoexpressanopiniononthese Management isresponsibleforthepreparationandfairpresentationofthese I haveauditedtheaccompanyingconsolidated ų nancial statementsinordertodesignauditproceduresthatareappropriatethecircumstances,butnotfor ų nancial performanceandcash ų nancial statementsreferredtoabovepresentfairly,in all materialrespects,the Ŵ ows fortheyearthenended,andasummaryofsigni ų nancial statementsthatarefreefrommaterialmisstatement,whetherduetofraud Report of ų nancial statements,whetherduetofraudorerror.Inmakingthoserisk Ŵ ows fortheyearthenended,inaccordancewithThaiFinancial Reporting ų nancial statementsofBangkokDusitMedicalServicesPublic ų nancial statementsbasedonmyaudit.Iconducted ų cient andappropriatetoprovideabasisformyaudit ų nancial statementsofBangkokDusitMedicalServices independent auditor ų Certified Public Accountant(Thailand)No.4451 nancial statements. ų cant accountingpoliciesandother ų nancial statementsinaccordance ų nancial statementsarefree Wichart Lokatekrawee ų nancial positionasat Ernst &YoungOffice Limited Bangkok: 27February 2013 ų nancial 87 A n n u a l R e p o r t 2 0 1 2 R e p o r t o f i n d e p e n d e n t a u d i t o r 88 A n n u a l R e p o r t 2 0 1 2 S t a t e m e n t o f f i n a n c i a l p o s i t i o n As at31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement of 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB Total assets Total non-currentassets Other non-currentassets Intangible assets Goodwill Land andbuildingsnotusedinoperation Property, premisesandequipment Investment properties Long-term loanstorelatedparties Other long-terminvestments Investments insubsidiarycompanies Investments inassociatedcompanies Restricted Long-term depositat Non-current assets Total currentassets Other currentassets Inventories Short-term loanstorelatedparties Dividend receivable-relatedparties Trade andotherreceivables Short-term investments Cash andcashequivalents Current assets Assets Others Leasehold rights ų nancial institutiondeposits ų nancial institution financial position 8, 9,10 10, 19  Note 6, 7 10 18 17 16 15 10 14 13 12 11 10 10 6 6 68,460,980,936 59,375,084,533 10,609,368,928 33,151,946,067 12,864,094,347 4,287,063,795 3,589,575,612 9,085,896,403 779,882,276 267,768,130 UFNFOUT 150,337,990 253,524,385 552,715,404 568,719,716 633,123,001 222,795,000 495,775,237 11,268,600 23,022,448 2012 - ų - - - nancial statements Consolidated

58,791,932,247 49,915,201,634 10,609,368,928 29,430,070,630 5,049,423,501 2,815,613,743 8,876,730,613 1,037,726,798 3,377,111,722 3,875,733,420 195,333,849 557,137,056 482,139,079 511,202,630 190,226,327 121,792,752 464,365,921 24,685,891 50,000,000 2011 - - - -

24,917,353,505 50,456,221,280 47,601,300,346 5,324,980,064 6,448,076,571 9,188,934,474 2,854,920,934 1,567,094,336 322,451,390 458,385,000 207,098,786 962,104,787 184,271,166 632,796,658 19,547,968 91,267,248 24,734,463 99,317,055 7,797,600 2012 ų - - - nancial statements 10,209 Separate

41,213,735,061 38,311,231,980 23,925,320,165 4,978,103,389 1,665,538,184 4,876,099,654 1,735,973,111 2,902,503,081 1,520,306,827 230,927,282 307,097,286 829,289,509 106,061,020 510,876,287 425,816,327 14,872,145 14,455,744 72,988,099 2011 (Unit: Baht) - - - - 10,032

Liabilities andshareholders'equity 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB Total liabilities Total non-currentliabilities Other non-currentliabilities Deferred income Provision forlong-termemployeebene Debentures -netofcurrentportion Liabilities under Long -termloansfrom Non-current liabilities Total currentliabilities Other currentliabilities Accrued expenses Income taxpayable Current portionofdebentures Current portionofliabilitiesunder Current portionoflong-termloans Short-term loansfromrelatedparties Trade andotherpayables Bank overdraftsandshort-termloans Current liabilities agreement -netofcurrentportion insitutions -netofcurrentportion ų from from nance leaseagreements ų ų nancial institutions nancial institutions Statement of ų nance lease ų nancial ų ts 10, 21 Note 10 24 34 23 22 34 23 22 10 20 financial position 11,372,710,248 29,633,906,072 18,261,195,824 2,276,914,656 1,999,885,487 8,558,261,019 3,614,105,602 1,312,845,086 1,108,655,624 7,063,968,777 1,225,104,808 667,591,078 606,750,181 889,645,572 131,391,804 UFNFOUT 92,712,864 86,073,514 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries 2012 - ų nancial statements Consolidated

25,374,702,977 17,796,232,415 1,162,070,430 8,461,262,680 6,951,172,278 7,578,470,562 1,815,833,234 3,391,190,815 173,449,698 862,972,388 185,304,941 451,509,847 725,829,097 149,722,523 813,214,841 231,170,205 2011 - -

24,355,818,166 15,809,777,047 2,796,624,548 7,063,968,777 8,254,981,600 8,546,041,119 1,999,885,487 1,200,000,000 961,204,100 820,198,400 203,262,053 519,201,230 192,004,068 212,524,251 11,436,066 39,514,847 74,862,285 6,150,454 2012 ų nancial statements (continued) Separate As at31December2012

15,151,455,531 11,537,527,851 8,461,262,680 2,705,410,000 3,613,927,680 1,627,946,051 106,791,206 108,620,182 148,516,084 158,023,562 397,328,233 436,300,000 942,752,305 48,526,497 3,051,032 6,927,699 2011 - (Unit: Baht) -

89 A n n u a l R e p o r t 2 0 1 2 S t a t e m e n t o f f i n a n c i a l p o s i t i o n ( c o n t i n u e d ) 90 S t a t e m e n t o f f i n a n c i a l p o s i t i o n A n n u a l R e p o r t 2 0 1 2 ( c o n t i n u e d ) As at31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement of 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB Liabilities andshareholders'equity Share capital Shareholders' equity Total liabilitiesandshareholders'equity Total shareholders'equity Non -controllinginterestsofthesubsidiaries Equity attributabletoownersoftheCompany Other componentsofshareholders'equity Retained earnings Share premium Registered Unappropriated Appropriated -statutoryreserve Difference fromshareholdingrestructure Premium onordinaryshares Issued andfullypaid-up 1,700,004,771 ordinarysharesofBaht1each 1,545,458,883 ordinarysharesofBaht1each of Baht1each) (2011: 1,553,391,408ordinaryshares financial position (continued) Note 27 25 68,460,980,936 38,827,074,864 37,295,511,632 15,081,806,199 20,022,497,644 1,531,563,232 1,545,458,883 1,700,004,771 170,748,104 170,000,477 305,000,325 UFNFOUT 2012 ų nancial statements Consolidated

58,791,932,247 33,417,229,270 31,995,191,880 20,022,497,644 1,422,037,390 9,003,545,079 1,545,458,883 1,553,391,408 963,350,808 155,339,141 305,000,325 2011 (continued)

50,456,221,280 26,100,403,114 26,100,403,114 19,959,573,716 3,433,450,234 1,545,458,883 1,700,004,771 991,919,804 170,000,477 2012 ų - - nancial statements Separate

41,213,735,061 26,062,279,530 26,062,279,530 19,959,573,716 1,885,404,407 2,516,503,383 1,545,458,883 1,553,391,408 155,339,141 2011 - - (Unit: Baht)

5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB Weighted averagenumber ofordinaryshares(shares) Pro Basic earningspershare Non-controlling interestsofthesubsidiaries Equity holdersoftheCompany Pro Pro Income taxexpenses Pro Finance expenses Pro Share ofincomefrominvestmentsin Pro Total expenses Administrative expenses Cost ofhospitaloperationsandgoodssold Expenses Total revenues Total otherincome Other income Revenues fromhospitaloperations Revenues income taxexpenses associated companies ų investments inassociatedcompanies, Others Gain onfairvalueadjustmentofinvestments Dividend income Interest income Revenue fromsalesofgoodsandfoods ų ų ų ų ų ų nance expensesandincometax t attributabletoequityholdersof theCompany t attributableto: t fortheyear t beforeincometaxexpenses t before t beforeshareofincomefrom ų nance expensesand 12, 13,14   29, 35 Note 30 10 12 10 10 10 10 38,207,476,322 29,238,818,033 47,862,159,069 (1,520,706,466) 44,307,328,175 10,622,346,145 1,170,942,346 8,968,658,289 3,554,830,894 1,795,048,116 8,252,233,777 8,252,233,777 9,772,940,243 1,545,458,883 7,936,947,120 9,654,682,747 (849,405,902) 515,774,275 315,286,657 UFNFOUT 967,663,398 16,564,227 56,501,930 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries 2012 ų nancial statements Consolidated 5.14

30,899,676,079 23,675,485,850 37,371,338,459 Income (1,456,317,745) 35,224,466,182 4,626,538,634 4,626,538,634 6,082,856,379 7,224,190,229 2,146,872,277 1,009,460,204 1,461,915,619 4,385,987,305 6,853,307,748 6,471,662,380 (770,451,369) 240,551,329 491,804,455 479,028,410 103,527,505 381,645,368 63,051,703 2011 3.00

12,856,401,144 10,001,426,497 2,854,974,647 9,209,439,726 2,839,790,823 6,369,648,903 1,545,458,883 2,836,277,014 2,155,163,968 2,678,351,723 3,646,961,418 3,646,961,418 2,678,351,723 (810,684,404) (157,925,291) 449,760,125 202,430,001 For theyearended31December2012 47,620,553 2012 statement ų - nancial statements -

1.73 Separate

10,759,906,322 7,781,804,697 2,302,468,571 5,479,336,126 2,501,066,973 1,979,139,621 2,297,012,075 2,406,440,939 2,978,101,625 8,258,839,349 2,297,012,075 2,978,101,625 1,461,915,619 (109,428,864) (571,660,686) 407,838,566 71,717,388 42,371,398 2011 - - (Unit: Baht)

1.57

91 A n n u a l R e p o r t 2 0 1 2 I n c o m e s t a t e m e n t 92 A n n u a l R e p o r t 2 0 1 2 S t a t e m e n t o f c o m p r e h e n s i v e i n c o m e For theyearended31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement of Non-controlling interestsofthesubsidiaries Equity holdersoftheCompany Total comprehensiveincomeattributableto: Total comprehensiveincomefortheyear Other comprehensiveincomefortheyear Share ofothercomprehensiveincomefrom Exchange differencesontranslationof Gain onrevaluationofland Actuarial losses Reversal gainonchangeinvalueofavailable-for-sale Gain onchangeinvalue Other comprehensiveincome: Pro 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB associated companies ų investment inassociatedcompany from otherlong-terminvestmentto investments duetotransferofinvestment of available-for-saleinvestments ų nancial statementsinforeigncurrency t fortheyear comprehensive income 16, 17  Note 24 (1,372,147,918) 7,467,366,171 7,154,141,916 7,467,366,171 8,252,233,777 (784,867,606) (131,630,157) 634,445,804 313,224,255 (34,518,057) UFNFOUT 114,186,053 2012 4,796,669 ų nancial statements Consolidated

6,121,060,088 5,885,182,971 6,121,060,088 1,494,521,454 1,372,437,827 4,626,538,634 235,877,117 51,099,075 65,309,329 8,985,000 (3,309,777) 2011 -

(1,372,147,918) 1,738,119,787 1,738,119,787 2,678,351,723 (940,231,936) 474,157,070 (46,747,333) 2012 4,506,245 ų - nancial statements -

Separate

3,669,284,435 3,669,284,435 1,372,272,360 1,372,272,360 2,297,012,075 2011 - - - - - (Unit: Baht)

Bangkok Dusit Medical Services Public Company Limited and its subsidiaries For the year ended 31 December 2012 Statement of cash flows

Cash flows from operating activities (Unit: Baht) Consolidated Separate ųnancial statements ųnancial statements

2012 2011 2012 2011 Proųt before income tax 9,772,940,243 6,082,856,379 2,836,277,014 2,406,440,939 Adjustments to reconcile proųt before corporate income tax to net cash provided by (paid from) operating activities: Depreciation and amortisation expenses 2,950,574,134 2,707,488,415 664,350,916 701,608,922 Write-off of assets 19,699,358 18,628,818 764,124 276,429 Bad debts and allowance for doubtful accounts 108,788,432 116,796,026 14,850,406 58,859,014 Loss (reversal loss) on impairment of assets 1,914,699 (13,083,042) - (12,333,020) Loss on deteriorated inventories 1,061,037 913,628 794,531 737,983 Amortisation of deferred income (42,057,894) (43,745,508) (33,757,897) (37,492,080) Share of income from investments in associated companies (967,663,398) (381,645,368) - - Negative goodwill - (25,266,375) - - 93 Gain on fair value adjustment of investments (1,795,048,116) (479,028,410) - - Amortisation of expense for convertible debentures, issued debentures and loan 3,361,984 4,010,911 3,361,984 3,277,578 Loss (gain) on disposal of property, premises and equipment 4,620,158 (9,915,912) 3,715,104 (2,552,500) Gain on fair value adjustment of investment properties (17,876,855) (1,045,000) (17,876,855) (18,069,000)

Loss on liquidation of a subsidiary company - - - 1,031,853 A n u a l R e p o r t 2 0 1 S t a e m n o f c s h l w Unrealised loss (gain) on foreign exchange - - 14,055,135 (12,870,015) Long-term employee beneųt expenses 132,811,572 107,180,693 22,484,630 22,241,974 Interest income (56,501,930) (63,051,703) (202,430,001) (71,717,388) Dividend income (16,564,227) (103,527,505) (2,155,163,968) (1,979,139,621) Interest expense 849,405,902 770,451,369 810,684,404 571,660,686 Proųt from operating activities before changes in operating assets and liabilities 10,949,465,099 8,688,017,416 1,962,109,527 1,631,961,754

5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUBUFNFOUT 94 S t a t e m e n t o f c a s h f l o w s A n n u a l R e p o r t 2 0 1 2 ( c o n t i n u e d ) For theyearended31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement of Net cashusedininvestingactivities Cash paidforpurchaseofintangible assets Cash receivedfromlong-termloans torelatedparties Increase inlong-termloanstorelated parties Increase inshort-termloanstorelatedparties Cash paidforleaseholdrights Cash paidforpurchaseofproperty,premisesandequipment Cash receivedfromdisposalofproperty, Cash paidforinvestmentproperty Cash receivedfromdisposalofdued Cash receivedfromrefundingcapitalofasubsidiarycompany Cash paidforpurchaseofinvestmentsinsubsidiaries, Interest receivedfrominvestment Dividend received Decrease inlong-term Decrease inrestricted Decrease (increase)inshort-terminvestments Cash Net cashfromoperatingactivities Net cashfromoperatingactivities Increase (decrease)inoperatingliabilities Decrease (increase)inoperatingassets Cash flowsfromoperatingactivities(continued) 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB premises andequipment other long-terminvestment Cash paidforcorporateincometax Cash receivedfromtaxrefund Cash paidforinterestexpenses Cash receivedfrominterestincomes Other non-currentliabilities Provision forlong-termemployeebene Other currentliabilities Accrued expenses Trade andotherpayables Other non-currentassets Other currentassets Inventories Trade andotherreceivables associates andothercompany Ŵ ows frominvestingactivities ų ų nancial institutiondeposits nancial institutiondeposits cash flows ų ts 10,820,398,443 (9,715,653,295) (5,791,020,424) (1,699,131,065) (1,017,021,032) (4,266,954,772) 8,409,480,603 (198,978,746) (779,629,930) (111,254,687) 150,774,655 216,081,232 478,385,266 256,783,484 196,888,215 280,599,833 (17,280,536) (18,758,494) (55,511,843) (28,545,237) (19,620,675) UFNFOUT 42,783,342 11,999,118 50,000,000 37,051,249 25,059,813 1,663,443 2012 - - - - - ų

nancial statements Consolidated

(continued) (3,775,355,854) (3,559,683,668) (1,423,883,387) 1,539,710,529 6,194,726,557 8,277,807,444 (2,188,039,086) (140,325,399) (135,177,289) (482,018,260) 166,639,607 151,864,550 625,615,414 105,300,148 (737,131,245) (714,466,815) (52,960,502) (23,122,000) (87,604,617) (35,341,337) 500,000,000 15,111,753 61,067,509 15,041,752 62,891,993 49,562,945 18,300,692 2011 - - - - -

(8,556,018,437) (4,173,846,818) (1,743,480,338) (5,258,988,113) 2,144,345,506 1,407,040,400 2,147,366,368 (125,534,806) (167,851,367) (757,011,458) (134,327,592) 683,988,290 138,865,503 187,557,719 120,654,607 (83,639,987) (19,620,675) (54,830,925) 85,212,862 45,238,490 (5,223,796) (8,677,347) (4,675,823) 16,203,628 1,534,191 2012 ų ------nancial statements

(177) Separate

(1,010,593,176) (1,602,894,719) 1,979,139,621 1,739,532,850 1,416,483,569 (4,607,666,211) (173,832,564) (555,288,206) (762,812,347) (135,177,289) (164,527,385) 258,968,147 641,837,422 180,733,708 862,319,916 (331,495,962) (52,960,502) (69,068,435) 500,000,000 15,111,753 59,850,137 70,192,988 13,020,475 25,503,007 17,448,294 (6,353,393) (9,472,731) 2011 5,725,129 (351,887) - - - (Unit: Baht)

Acquireinvestmentsinsubsidiary companies Dividendreceivable Increase(decrease)inpayabletoconstructionretention Decreaseinaccountspayable-investmentproperty Non-cash items: Supplemental cash Cash andcashequivalentsatendofyear Cash andcashequivalentsatbeginningofyear Net increase(decrease)incashandequivalents Net cashfrom(usedin) Dividend paidbysubsidiariestonon-controllinginterests Dividend paid Net cashreceivedfromissuingordinaryshares fromnon-controllinginterests Cash paidforinvestmentinsubsidiarycompanies Cash paidforredemptionofdebentures Cash receivedfromissueofdebentures Repayments ofliabilitiesunder Repayment oflong-termloansfrom Cash receivedfromlong-termloans Repayment ofbankoverdraftandshort-termloans Cash receivedfrombankoverdraftandshort-termloans Increase inshort-termloansfromrelatedparties Cash 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB Increase inaccountspayable Assets acquiredunder from from by issuingshares - property,premisesandequipment Ŵ ows from ų ų nancial instititons nancial instititons ų nancing activities Ŵ ows information: ų ų nance leaseagreements nancing activities ų nance leaseagreements Statement of ų nancial institutions ų nancial institutions

(4,930,611,323) (8,155,066,935) (1,699,996,203) 9,150,000,000 1,020,014,884 6,617,777,800 3,589,575,612 3,875,733,420 (266,547,297) (286,157,808) (209,638,666) 106,149,426 599,229,600 (85,132,092) UFNFOUT 185,539,074 11,268,600 33,715,736 (7,613,155) Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries 2012 - - - - - ų

nancial statements Consolidated cash flows

(5,019,926,849) (4,209,929,219) (1,033,092,311) (3,000,000,000) 13,321,247,595 4,616,390,400 4,401,208,517 3,875,733,420 2,489,455,028 1,386,278,392 3,494,818,102 (137,403,367) (989,912,836) (131,467,725) 166,135,869 (66,586,442) 90,571,481 48,301,606 9,717,108 2011 - - -

(1,699,996,203) (7,950,000,000) 1,567,094,336 1,520,306,827 7,195,765,546 6,617,777,800 9,150,000,000 1,168,678,497 (684,307,800) 599,229,600 For theyearended31December2012 17,291,190 12,479,609 46,787,509 (7,613,155) (5,616,348) 10,676,268 7,797,600 2012 ų ------nancial statements

(continued) Separate

(4,200,000,000) (3,000,000,000) 13,321,247,595 1,021,610,000 4,200,000,000 3,494,818,102 1,520,306,827 1,082,258,711 1,178,622,919 (343,800,000) (989,912,836) 438,048,116 (13,722,006) 988,344,818 11,159,376 (2,154,273) 25,939,443 2011 9,717,108 - - - - (Unit: Baht)

95 A n n u a l R e p o r t 2 0 1 2 S t a t e m e n t o f c a s h f l o w s ( c o n t i n u e d ) 96 S t a t e m e n t o f c h a n g e s i n A n n u a l R e p o r t 2 0 1 2 s h a r e h o l d e r s ' e q u i t y For theyearended31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement of Balance asat31December2012 Decrease innon-controllinginterestsofsubsidiaries Change innon-controllinginterestsofsubsidiaries Share ofInterestpaidforconvertiblebondstreated Total comprehensiveincomefortheyear Other comprehensiveincomefortheyear Pro Statutory reserve(Note27) Dividend paid(Note26) Balance asat31December2011 Balance asat31December2011 subsidiariesfromdividendof Decrease innon-controllinginterestsof Change innon-controllinginterestsofsubsidiaries Total comprehensive incomefortheyear Other comprehensiveincomefortheyear Pro Statutory reserve(Note27) Conversion ofconvertibledebentures Issue ofsharecapital(Note25) Acquire investmentsinsubsidiary Cumulative effectofchangeinaccounting Balance asat31December2010 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB ų ų from dividendofsubsidiaries from purchaseinvestmentinsubsidiaries as equitysecuritiesfromanassociatedcompany from purchaseinvestmentinsubsidiaries companies byissuingshares(Note25) policy foremployeebene t fortheyear t fortheyear ų ts changes inshareholders'equity 1,545,458,883 1,545,458,883 1,545,458,883 1,246,035,935 share capital 295,236,682 Issued and paid-up 4,127,864 58,402 ------12,879,901,154 20,022,497,644 20,022,497,644 20,022,497,644 6,988,760,633 UFNFOUT Premium on 151,699,002 ordinary shares 2,136,855 ------305,000,325 305,000,325 305,000,325 305,000,325 shareholding restructure Difference from ------131,226,422 170,000,477 155,339,141 155,339,141 Appropriated- 14,661,336 24,112,719 statutory reserve Retained earnings ------15,081,806,199 (1,699,996,203) 5,161,968,125 4,382,839,409 4,385,987,305 7,792,918,659 7,936,947,120 9,003,545,079 9,003,545,079 (517,149,736) (144,028,461) (24,112,719) (14,661,336) (3,147,896) Unappro- priated ------(1,367,356,128) (1,367,356,128) 1,372,254,087 1,372,254,087 1,372,433,095 1,372,433,095 available-for-sale Surplus (de investments on changes in valueof 4,897,959 (179,008) ------ų cit) (Unit: Baht) Consolidated ųnancial statements Equity attributable to owners of the Company Other components of shareholders’ equity Exchange Share of other Equity differences on components of Excess of attributable to translation of Convertible shareholders' investment over Total other Total equity non-controlling Revaluation ųnancial debentures - equity from book value of components of attributable to interest Total surplus on statements in equity associated subsidiary shareholders' owners of of the shareholders' land foreign currency component company companies equity the Company subsidiaries equity

1,949,627,079 (168,801,173) 20,187 20,834,275 - 1,801,501,360 15,634,492,800 648,411,734 16,282,904,534

------(517,149,736) (19,303,550) (536,453,286)

------13,175,137,836 - 13,175,137,836 ------155,826,866 - 155,826,866 - - (20,187) - - (20,187) 2,175,070 - 2,175,070 ------4,385,987,305 240,551,329 4,626,538,634 S t a e m n o f c h g s i s h a r e o l d ' q u i t y 5,855,907 58,745,231 - 65,309,329 - 1,502,343,562 1,499,195,666 (4,674,212) 1,494,521,454 97 5,855,907 58,745,231 - 65,309,329 - 1,502,343,562 5,885,182,971 235,877,117 6,121,060,088

- - - - (2,340,473,927) (2,340,473,927) (2,340,473,927) 623,638,531 (1,716,835,396)

------(66,586,442) (66,586,442) 1,955,482,986 (110,055,942) - 86,143,604 (2,340,473,927) 963,350,808 31,995,191,880 1,422,037,390 33,417,229,270

1,955,482,986 (110,055,942) - 86,143,604 (2,340,473,927) 963,350,808 31,995,191,880 1,422,037,390 17,134,324,736 ------(1,699,996,203) - (1,699,996,203) ------A n u a l R e p o r t 2 0 1 ------7,936,947,120 315,286,657 8,252,233,777 632,633,745 (34,410,371) - 130,356,011 - (638,776,743) (782,805,204) (2,062,402) (784,867,606) 632,633,745 (34,410,371) - 130,356,011 - (638,776,743) 7,154,141,916 313,224,255 7,467,366,171

- - - (5,847,717) - (5,847,717) (5,847,717) - (5,847,717)

- - - - (147,978,244) (147,978,244) (147,978,244) (118,566,321) (266,544,565)

------(85,132,092) (85,132,092) 2,588,116,731 (144,466,313) - 210,651,898 (2,488,452,171) 170,748,104 37,295,511,632 1,531,563,232 22,544,170,330 98 S t a t e m e n t o f c h a n g e s i n A n n u a l R e p o r t 2 0 1 2 s h a r e h o l d e r s ' e q u i t y ( c o n t i n u e d ) For theyearended31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries (continued) Statement of Balance asat31December2012 Total comprehensiveincome fortheyear Other comprehensiveincomefortheyear Pro Statutory reserve(Note27) Dividend paid(Note26) Balance asat31December2011 Balance asat31December2011 Total comprehensiveincomefortheyear Other comprehensiveincomefortheyear Pro Statutory reserve(Note27) Conversion ofconvertibledebentures Issue ofsharecapital(Note25) Acquire investmentsinsubsidiarycompaniesby Cumulative effectofchangeinaccountingpolicy Cumulative effectofchangeinaccountingpolicy Balance asat31December2010 5IFBDDPNQBOZJOHOPUFTBSFBOJOUFHSBMQBSUPGUIFųOBODJBMTUB issuing shares(Note25) for investmentproperty for employeebene ų ų t fortheyear t fortheyear ų ts changes inshareholders'equity 1,246,035,935 1,545,458,883 1,545,458,883 1,545,458,883 share capital Issued and 295,236,682 paid-up 4,127,864 UFNFOUT ------58,402

19,959,573,716 19,959,573,716 19,959,573,716 12,879,901,154 Premium on 6,925,836,705 151,699,002 ordinary shares 2,136,855 ------

Appropriated- 170,000,477 155,339,141 155,339,141 131,226,422 14,661,336 24,112,719 statutory reserve ------Retained earnings

(1,699,996,203) 3,433,450,234 2,631,604,390 2,678,351,723 2,516,503,383 2,516,503,383 2,297,012,075 2,297,012,075 (158,120,879) Unappro- 186,554,761 215,170,145 (46,747,333) (14,661,336) (24,112,719) priated - - - -

(Unit: Baht) Separate ųnancial statements Other components of shareholders’ equity

Surplus (deųcit) Convertible Total other on changes in value debentures - components of Total of available-for-sale Revaluation equity shareholders' shareholders' investments surplus on land component equity equity

(179,008) 728,481,200 20,187 728,322,379 9,217,976,202

- - - - (158,120,879)

- (215,170,145) - (215,170,145) -

- - - - 13,175,137,836 - - - - 155,826,866 S t a e m n o f c h g s i s h a r e o l d ' q u i t y ( c n ) - - (20,187) (20,187) 2,175,070 99 ------2,297,012,075 1,372,272,360 - - 1,372,272,360 1,372,272,360 1,372,272,360 - - 1,372,272,360 3,669,284,435 1,372,093,352 513,311,055 - 1,885,404,407 26,062,279,530

1,372,093,352 513,311,055 - 1,885,404,407 26,062,279,530 - - - - (1,699,996,203) A n u a l R e p o r t 2 0 1 ------2,678,351,723 (1,367,641,673) 474,157,070 - (893,484,603) (940,231,936) (1,367,641,673) 474,157,070 - (893,484,603) 1,738,119,787 4,451,679 987,468,125 - 991,919,804 26,100,403,114 100 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s For theyearended31December2012 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Notes to 2.2 Basisofconsolidation 2.1 The 2. Basisofpreparation 1. Generalinformation the Companyisat2,SoiSoonvijai7,NewPetchburiRoad,BangKapi,Huaykwang,Bangkok. and domiciledinThailand.TheCompanyisprincipallyengagedthehospitalbusiness.registeredof Phnom PenhMedical ServicesCo.,Ltd. Angkor PisithCo.,Ltd. (Thailand) Co.,Ltd. Bio MolecularLaboratories National HealthcareSystemsCo., Ltd. Bangkok RatchasimaHospitalCo.,Ltd. Wattanavej Co.,Ltd. Bangkok Trat HospitalCo., Ltd. Bangkok SamuiHospitalCo.,Ltd. Bangkok RayongHospitalCo.,Ltd. Bangkok PattayaHospitalCo.,Ltd. Bangkok PhrapradaengHospitalCo.,Ltd. BNH MedicalCenterCo.,Ltd. Bangkok PhuketHospitalCo.,Ltd. Bangkok HospitalHatyaiCo.,Ltd. Samitivej PublicCo.,Ltd. Held bytheCompany a) The consolidated a) accounting policies. The ų The Accounting ActB.E.2543. of theNoti Accounting ProfessionActB.E.2547andtheirpresentationhasbeenmadeincompliancewiththestipulations Bangkok DusitMedicalServicesPublicCompanyLimited("theCompany")isapubliccompanyunderThailaws nancial statementsinEnglishlanguagehavebeentranslatedfromtheThai Limited (“theCompany”)andthefollowingsubsidiariessubsidiaries”)asfollows: ų ų ų nancial statementshavebeenpreparedonahistoricalcostbasisexceptwhereotherwisedisclosedinthe nancial statementsinThailanguagearetheof nancial statementshavebeenpreparedinaccordancewithaccountingstandardsenunciatedunderthe Company’s name ų cation oftheDepartmentBusinessDevelopmentdated28September2011,issuedunder consolidated financialstatements ų nancial statementsincludethe Central lab Central lab Nature of business Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital ų ų Baht 1,000million nancial ofBangkokDusitMedicalServicesPublicCompany Baht 300million Baht 180million Baht 250million Baht 150million Baht 400million Baht 280million Baht 105million Baht 586million Baht 500million Baht 500million cial statutory Baht 10million Baht 75million USD 10million USD 10million 2012 Registered capital ų nancial statementsoftheCompany.The Baht 1,000million Baht 300million Baht 180million Baht 250million Baht 150million Baht 400million Baht 280million Baht 105million Baht 586million Baht 500million Baht 500million Baht 10million Baht 75million USD 10million USD 10million 2011 ų nancial statements. shareholding bythe 100.00 100.00 100.00 Company 2012 80.00 95.00 74.02 90.36 99.69 99.76 97.27 79.00 91.48 99.68 98.79 95.76 Percentage of (percent) 2011 100.00 100.00 100.00 80.00 95.00 74.02 89.73 99.69 99.76 97.22 79.00 91.48 99.68 98.78 95.76 ų ce of A.N.B. LaboratoriesCo.,Ltd. (liquidated in2012) Phuket HealthAndTravel Co.,Ltd. (Thailand) Co.,Ltd. Sodexo HealthcareSupportServices First HealthFoodCo.,Ltd. Irving SheridanSECo.,Ltd. Samitivej SrirachaCo.,Ltd. National HealthcareSystemsCo.,Ltd. Held bythesubsidiaries Bangkok HospitalUdonCo.,Ltd. Bangkok HospitalChiangmaiCo.,Ltd. Bangkok PremierLifeInsuranceBrokerCo.,Ltd. Thai MedicalCenterPublicCo.,Ltd. Siam MedicalCo.,Ltd. Paolo SamutprakarnCo.,Ltd. Paolo MedicCo.,Ltd. Prasit PatanaPublicCo.,Ltd. BDMS Training Co.,Ltd. Bangkok HospitalKaoYai Co.,Ltd. Greenline SynergyCo.,Ltd. Royal BangkokHealthcareCo.,Ltd. Bangkok HealthInsuranceLimited New PetchburiMedicalServicesCo.,Ltd. Asia InternationalHealthcareCo.,Ltd. B.D.M.S. InternationalMedicalServicesCo.,Ltd. Royal RattanakMedicalServicesCo.,Ltd. Held bytheCompany Company’s name (continued) products andfacility distribution ofhealth Life insurancebroker Management service information service Manufacturer and Healthcare travel Health insurance Training business management for Technology and pharmaceutical Restaurant and Restaurant and food products distribution of medicine and management distributor of Nature of Investment health food business Investment Central lab healthcare Hospital products Dormant business Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital service Assets Riel 26,000million Baht 1,108million Riel 9,200million Baht 499million Baht 188million Baht 500million Baht 250million Baht 201million Baht 100million Baht 300million Baht 200million Baht 736million Baht 105million Baht 0.1million Baht 15million Baht 14million Baht 75million Baht 20million Baht 42million Baht 70million Baht 35million Baht 1million Baht 1million 2012 Registered capital - Riel 26,000million Baht 2,341million Riel 9,200million Baht 499million Baht 200million Baht 736million Baht 105million Baht 188million Baht 201million Baht 100million Baht 300million Baht 0.1million Baht 70million Baht 15million Baht 14million Baht 75million Baht 42million Baht 35million Baht 1million Baht 5million Baht 1million Baht 4million 2011 - - shareholding bythe Company 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2012 74.00 96.03 68.06 25.97 99.76 85.69 93.30 98.32 99.94 70.00 Percentage of - (percent) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2011 96.03 68.06 25.97 99.76 80.72 88.73 97.14 99.94 70.00 74.00 - - 101 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 102 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s to the assets andliabilities underthestipulated guidelines. Theeffectofthe adoptionofthisaccounting standardin2013 the carryingamountofanasset orliabilityintheaccountingrecordsanditstaxbase, andtorecognisedeferredtax TAS 12IncomeTaxes as below. statements fortheyearwhenthereareinitiallyapplied, whileTAS 12willhaveimpactonthe the businessofCompany;TAS 21(revised2009)andTFRS 8willnothaveanysigni 2.3 The 3. Newaccountingstandardsnotyeteffective incorporated inCambodia. Co., Ltd.,PhnomPenhMedicalServicesLtd.andRoyalRattanakwhichwere for SIC 25 SIC 21 SIC 10 Accounting StandardInterpretations: TFRS 8 Financial ReportingStandard: TAS 21(revised2009) TAS 20(revised2009) TAS 12 Accounting standards: This accountingstandardrequires anentitytoidentifytemporarydifferences,which aredifferencesbetween The Company’smanagementbelievesthatTAS 20(revised2009), SIC10,21and25arenotrelevantto ų method, havebeenpreparedsolelyforthebene f) Non-controllinginterestsrepresenttheportionofpro e) Material balancesandtransactionsbetweentheCompanyitssubsidiarieshavebeen eliminatedfrom d) Theassetsandliabilitiesinthe c) The b) Subsidiariesarefullyconsolidated,beingthedateonwhichCompanyobtainscontrol,andcontinueto All subsidiariesincorporatedinThailandexceptB.D.M.S.InternationalMedicalServicesCo.,Ltd.,AngkorPisith The FederationofAccountingProfessionsissuedthefollowingnew/revisedaccountingstandardsthatareeffective scal yearsbeginningonorafter1January2013. the consolidatedstatementof held bytheCompanyandarepresentedseparatelyinconsolidatedpro the consolidated holders’ equity. differences ontranslationof using monthlyaverageexchangerates.Theresultingdifferencesareshownunderthecaptionof using theexchangerateprevailingonendofreportingperiod,andrevenuesexpensestranslated the Company. be consolidateduntilthedatewhensuchcontrolceases. ų nancial statements oftheCompanyandits subsidiariesareasfollows: separate ų nancial statementsofthesubsidiariesarepreparedusingsamesigni ų nancial statements,whichpresentinvestmentsinsubsidiariesandassociatesunderthecost

ų nancial statements. ų nancial statementsinforeigncurrency” ų ų nancial position. nancial statementsofoverseassubsidiarycompaniesaretranslatedtoBaht Income Taxes -Changes intheTax StatusofanEntityoritsShareholders Income Taxes -Recovery ofRevaluedNon-DepreciableAssets Government Assistance-NoSpeci Operating Segments The EffectsofChangesinForeignExchangeRates Accounting forGovernmentGrantsandDisclosureofAssistance Income Taxes ų t ofthepublic. ų t orlossandnetassetsofthesubsidiariesthatarenot ų c RelationtoOperatingActivities inthestatementsofchangesshare- ų t orlossandwithinequityin ų ų cant impactonthe cant accountingpoliciesas ų nancial statements “Exchange ų nancial standard interpretationsasfollows: in theRoyalGazetteon17January2013,mandatinguseofaccountingtreatmentguidanceand Service income deducting discounts. passed tothebuyer.Salesareinvoicedvalue,excluding valueaddedtax,ofgoodsandfoodsuppliedafter Revenue fromsalesofgoodsandfoods are recognisedasincomewhenserviceshavebeenrendered ormedicinedelivered. Hospital operations 4.1 Revenuerecognition 4. Significantaccountingpolicies of TFRIC13andhasyettoreachaconclusion. of theCompany.Managementisstillevaluating Treatment GuidanceforTransfers ofFinancialAssets,SIC29,TFRIC4and12arenotrelevanttothebusiness TFRIC 13 TFRIC 12 TFRIC 4 Financial ReportingStandardInterpretations: SIC 29 Accounting StandardInterpretation: Accounting Treatment GuidanceforTransfers of FinancialAssets Increase inothercomprehensiveincomefor2012 Statements ofcomprehensiveincome Increase (decrease)inpro Income statement Decrease inothercomponentsofshareholders'equity Increase inunappropriatedretainedearnings As at31December2012 Statement of In addition,theFederationofAccountingProfessionshasissuedNoti Service incomeisrecognised whenserviceshavebeenrendered. Sales ofgoodsandfoodsarerecognisedwhenthesigni Revenues fromhospitaloperations,mainlyconsistingof medicalfees,hospitalroomsalesandmedicinesales, The managementoftheCompanyhasassessedeffectthesestandardsandbelievesthatAccounting ų nancial position

ų t fortheyear2012 Customer LoyaltyProgrammes Service ConcessionArrangements Determining whetheranArrangementcontainsaLease Service ConcessionArrangements:Disclosures ų rst-year impacttothe ų cant risksandrewardsofownershipthegoodshave ų nancial statements Consolidated (519) 194 215 19 ų cation No.30/2012-34/2012,published ų nancial statementsoftheadoption ų nancial statements 1 January2014 1 January2014 1 January2014 1 January2014 1 January2013 Effective date Consolidated (198) 180 (8) 2 (Unit: MillionBaht) 103 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 104 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 4.2 Cashandcashequivalents Dividends Interest income membership programisamortisedtoincomeoveraperiodof10years. and graduallyamortisedtoincomeovermembershipperiod.ForcashreceivedinadvancefromtheLifePrivilege Membership income and allowanceforlossonimpairment ofassets(ifany). 4.6 Property,premisesand equipment/Depreciation 4.5 Investments the estimatedsellingpriceinordinarycourseofbusinesslesscostsnecessarytomakesale. 4.4 Inventories collection experiencesandanalysisofdebtaging. for theestimatedlossesthatmaybeincurredincollectionofreceivables.Theallowanceisgenerallybased on 4.3 Trade accountsreceivableandallowancefordoubtful with anoriginalmaturityof3monthsorlessandnotsubjecttowithdrawalrestrictions. Cash andcashequivalentsconsistofinhandat Dividends arerecognisedwhentherighttoreceivedividendsisestablished. Interest incomeisrecognisedonanaccrualbasisbasedtheeffectiverate. Membership incomeiscashreceiptfromsalesofmembershipcardswhichinitiallyrecordedasdeferred Land isstatedatrevaluedamount. Buildingsandequipmentarestatedatcostless accumulateddepreciation The fairvalueofmarketablesecuritiesisbasedonthe latest bidpriceofthelastworkingdayyear. f) Investmentsinsubsidiariesandassociatesareaccounted forintheseparate Investments inassociatesareaccountedfortheconsolidated e) d) Investments innon-marketableequitysecurities,whichtheCompanyclassi c) Investmentsindebtsecurities,bothduewithinoneyearandexpectedtobeheldmaturity,arerecorded b) Investments inavailable-for-salesecuritiesarestatedatfairvalue.Changesthevalueofthese b) a) Investmentsinsecuritiesheldfortradingarestatedatfairvalue.Changesthevalueofthese Inventories arevaluedatlowerofcost(weightedaveragebasis)ornetrealisablevalue.Netvalueis Trade accountsreceivablearestatedatthenetrealisablevalue.Allowancefordoubtfulisprovided cost method. stated atcostnetofallowanceforlossondiminutionin value(ifany). with theamortised/accretedamountpresentedasan adjustment totheinterestincome. at amortisedcost.Thepremium/discountondebtsecuritiesisamortised/accretedbytheeffectiveratemethod securities aresold. are recordedasaseparateiteminshareholders’equity,andwillbepro are recordedinpro ų t orloss. ų nancial institutionsandhighlyliquidinvestment ų nancial statementsusingtheequitymethod. ų ų nancial statementsusingthe es asotherinvestments,are ų t orlosswhenthe amortisation expenseischarged topro and theamortisationmethod ofsuchintangibleassetsarereviewedatleast each for impairmentwheneverthere isanindicationthattheintangibleassetmaybeimpaired. Theamortisationperiod impairment losses(ifany). recognition, theintangibleassetsarecarriedatcostless anyaccumulatedamortisationand of businessacquisitionwhileintangibleassetsacquired inothercasesarerecognisedatcost.Followingtheinitial 4.7 Intangibleassets or losswhentheassetisderecognised. following estimatedusefullives: land” comprehensive incometotheextentthatitdoesnotexceedanamountalreadyheldin assets, thedecreaseisrecognisedinpro same assetpreviouslyrecognisedasanexpense. a revaluationincreasewillberecognisedasincometotheextentthatitreversesdecreaseof assets, theincreaseiscrediteddirectlytoequityunderheadingof does notdiffermateriallyfromfairvalueattheendofreportingperiod. bene appraiser toitsfairvalues.Revaluationsaremadewithsuf Vehicles Structure equipment,furnitureandof Medical toolsandequipmentmachines Building, structuresandbuildingimprovements Land improvements Intangible assetswith Intangible assetsacquiredthroughbusinesscombination areinitiallyrecognisedattheirfairvalueonthedate Depreciation ofpremisesandequipmentiscalculatedbyreferencetotheircostonastraight-linebasisoverthe - Whenanasset’scarryingamountisdecreasedasaresultofrevaluationtheCompanyanditssubsidiaries’ - Whenanasset’scarryingamountisincreasedasaresultofrevaluationtheCompanyanditssubsidiaries’ Differences arisingfromtherevaluationaredealtwithin An itemofproperty,premisesandequipmentisderecognisedupondisposalorwhennofutureeconomic No depreciationisprovidedonlandand Depreciation attributedtotheoriginalcostportionisincludedindeterminingincome. Land initiallyrecordedatcostontheacquisitiondate,andsubsequentlyrevaluedbyanindependentprofessional ų inrespectofthesameasset. ts areexpectedfromitsuseordisposal.Anygainlossarisingondisposalofanassetisincludedinpro ų nite livesareamortisedona systematicbasisovertheeconomicusefullifeandtested ų ce equipment ų t orloss. ų t orlossHowever,therevaluationdecreaseischargedtoother ų xed assetsunderconstructionandinstallation. ų cient regularitytoensurethatthecarryingamount ų nancial statementsasfollows: “Revaluation surplusonland” 5-20years “Revaluation surpluson ų nancial yearend.The 3 -15years 3 -10years 5 -40years 5 -8years . However, ų t 105 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 106 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s classi 4.11 Operatingleases the assets. period. Theproperty,premisesorequipmentacquired under are includedinotherlong-termpayables,whiletheinterest elementischargedtopro and thepresentvalueofminimumleasepayments. Theoutstandingrentalobligations,netof are classi 4.10 Long-termrentalagreements with authorityintheplanninganddirectionofCompany’s operations. Company thatgivesthemsigni directly orindirectly,whichareundercommoncontrolwiththeCompany. 4.9 Relatedpartytransactions goodwill cannotbereversedinfutureperiods. less thanthecarryingamount,animpairmentlossisrecognisedinpro cash-generating units)towhichthegoodwillrelates.Whererecoverableamountofunit is of thecombination.TheCompanyestimatesrecoverableamounteachcash-generatingunit(orgroup of Company’s cashgeneratingunits(orgroupofcash-generatingunits)thatareexpectedtobene and whencircumstancesindicatethatthecarryingvaluemaybeimpaired. the excessisimmediatelyrecognisedasgaininpro value ofthenetassetsacquired.Iffairacquiredexceedscostbusinesscombination, services arereceived. acquiree eitheratfairvalueortheproportionateshareofacquiree’sidenti in theacquiree.Foreachbusinesscombination,acquirermeasuresnon-controllinginterest,ifany, the fairvalueatacquisitiondateofconsiderationtransferred,andamountanynon-controllinginterest 4.8 Goodwill/Businesscombination The intangibleassetwith on astraightline basisovertheperiodof thelease. Leases ofassetswhereasigni Leases ofproperty,premisesorequipmentwhichtransfer substantiallyalltherisksandrewardsofownership They alsoincludeassociatedcompaniesandindividualswhichdirectlyorindirectlyownavotinginterestinthe Related partiescompriseenterprisesandindividualsthatcontrolorarecontrolledbytheCompany,whether For thepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationisallocatedtoeach Goodwill iscarriedatcostlessanyaccumulatedimpairmentlosses.testedforannually Goodwill isinitiallyrecordedatcost,whichequalstotheexcessofcostbusinesscombinationoverfair Acquisition-related costsareaccountedforasexpensesintheperiodswhichincurredand Business combinationsareaccountedforusingtheacquisitionmethodwithcostofbeing Computer software5-10years ų ed asoperatingleases.Payments madeunderoperatingleasesarerecognisedas expenses inpro ų ed as ų nance leases.Financeleasesarecapitalisedatthelower ofthefairvalueleasedassets ų nite usefullivesisasfollow: ų cant in ų cant portionoftherisksand rewardsofownershipisretainedbythelessorare Ŵ uence overtheCompany,keymanagementpersonnel,directorsandof ų t orloss. ų nance leasesisdepreciatedovertheusefullifeof ų t orloss.Impairmentlossesrelatingto ų able netassets. ų t orlossoverthelease ų t fromthesynergies ų nance charges, ų t orloss ų cers trust fundandtheCompany’s anditssubsidiariescontributionsarerecognisedasexpenses whenincurred. monthly contributedbyemployees andbytheCompanyitssubsidiaries.Thefund’s assetsareheldinaseparate 1PTUFNQMPZNFOUCFOFųUT 4IPSUUFSNFNQMPZFFCFOFųUT 4.15 Employeebene at theendofreportingperiod. Monetary assetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedintoBahtattheexchangerateruling 4.14 Foreigncurrencies 4.13 Leaseholdrights exceeds thecarryingamountthatwouldhavebeendetermined,istreatedasarevaluationincrease. is recognisedinpro that wouldhavebeendeterminedhadnoimpairmentlossrecognisedfortheassetinprioryears.Suchreversal carrying amountoftheassetattributabletoareversalanimpairmentlossshallnotexceed used todeterminetheasset’srecoverableamountsincelastimpairmentlosswasrecognised.Theincreased amount. Apreviouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheassumptions may nolongerexistorhavedecreased,theCompanyanditssubsidiariesestimateasset’srecoverable the previousrevaluation. and therevaluationwastakentoequity,apartofsuchimpairmentisrecognisedinequityupamount able, willingparties,afterdeductingthecostsofdisposal. and itssubsidiariescouldobtainfromthedisposalofassetinanarm’slengthtransactionbetweenknowledge- corroborated byavaluationmodelthat,basedoninformationavailable,re asset. Indeterminingfairvaluelesscoststosell,anappropriatevaluationmodelisused.Thesecalculationsare discount ratethatre In determiningvalueinuse,theestimatedfuturecash which isthehigherofasset’sfairvaluelesscoststosellanditsinuse,thancarryingamount. indicate thatanassetmaybeimpaired.Animpairmentlossisrecognisedwhentherecoverableamountofasset, the property,premisesandequipmentotherintangibleassetswhenevereventsorchangesincircumstances 4.12 Impairmentofassets The Companyanditssubsidiaries anditsemployeeshavejointlyestablishedaprovident fund.Thefundis De Salaries, wages,bonusesandcontributionstothesocial security fundarerecognisedasexpenseswhenincurred. Gains andlossesonexchangeareincludedindetermining income. Transactions inforeigncurrenciesaretranslatedintoBahtattheexchangeraterulingdateoftransaction. Leasehold rightsareamortisedonthestraight-linebasisoverleaseperiod. In theassessmentofassetimpairmentifthereisanyindicationthatpreviouslyrecognisedlosses An impairmentlossisrecognisedinpro At theendofeachreportingperiod,Companyanditssubsidiariesperformimpairmentreviewsinrespect ų ned contributionplans ų t orlossunlesstheassetiscarriedatarevaluedamount,inwhichcasereversal, Ŵ ų ects currentmarketassessmentsofthetimevaluemoneyandrisksspeci ts ų t orloss.Howeverincaseswherepropertywaspreviouslyrevalued Ŵ ows arediscountedtotheirpresentvalueusingapre-tax Ŵ ects theamountthatCompany ų c tothe 107 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 108 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s obligations asade employees uponretirementunderlaborlaw.TheCompanyanditssubsidiariestreattheseseverancepayment De a professionallyquali prehensive income. takes asubstantialperiodof timetogetreadyforitsintendeduseorsalearecapitalised aspartofthecost 4.19 Borrowingcosts on taxablepro 4.18 Incometax ų related parties,long-termloans,liabilitiesunder bank overdraftsandshort-termloansfrom institution deposits,andinvestments.Financialliabilitiescarriedonthestatementof investments, tradeandotherreceivables,short-termloanslong-termtorelatedparties,restricted of theassetisrecognisedinpro properties arerecognisedinpro investment propertiesarestatedatfairvalue.Anygainsorlossesarisingfromchangesinthevalueof 4.16 Investmentproperties of yearsserviceandtheunusedvacationday.Thisprovisionhasbeenadjustedannually. the Company’sanditssubsidiaries'policyformula,takingintoconsiderationemployee'ssalary,number Provisions forvacation previous accountingpolicy,throughanadjustmenttothebeginningbalanceofretainedearningsin2011. the transitionalliability,whichexceedsliabilitythatwouldhavebeenrecognisedatsamedateunder 4.17 Financialinstruments nancial instrumentsforspeculativeortradingpurpose. ų The Companyanditssubsidiarieshaveobligationsinrespectoftheseverancepaymentsitmustmaketo The obligationunderthede For the Actuarial gainsandlossesarisingfrompost-employmentbene Borrowing costsdirectlyattributable totheacquisition,constructionorproduction ofanassetthatnecessarily Income taxisprovidedintheaccountsatamount expected tobepaidthetaxationauthorities,based The Companyanditssubsidiarieshavenopolicytohold anyoff-statementof On disposalofinvestmentproperties,thedifferencebetweennetproceedsandcarryingamount Investment propertiesaremeasuredinitiallyatcost,includingtransactioncosts.Subsequenttoinitialrecognition, The Companyanditssubsidiarieshavesetupprovisionsforvacationwhichiscalculatedinaccordancewith Financial assetscarriedonthestatementof ned bene ų rst-time adoptionofTAS 19EmployeeBene ų t plans ų ts determinedinaccordancewithtaxlegislation. ų ned bene ų ed independentactuarybasedonactuarialtechniques,usingtheprojectedunitcreditmethod. ų t plan. ų ų ų t orlosswhenincurred. t orlossintheperiodwhenassetisderecognised. ned bene ų ų t planandotherlong-termemployeebene nancial institutions,tradeandotherpayables,short-termloansfrom ų ų nancial positionincludedcashandequivalents,short-term nance leases,convertibledebenturesanddebentures. ų ts, theCompanyanditssubsidiarieselectedtorecognise ų ts arerecognisedimmediatelyinothercom- ų nancial positionderivative ų ų nancial positionincluded t plansisdeterminedby ų nancial is recognisedasincomeorexpensesonanaccrualbasis. 4.21 Interestrateswapcontracts obligation, andareliableestimatecanbemadeoftheamountobligation. 5. Significantaccountingjudgmentsandestimates event, itisprobablethatanout 4.20 Provisions of interestandothercoststhatanentityincursinconnectionwiththeborrowingfunds. respective assets.Allotherborrowingcostsareexpensedintheperiodtheyincurred.Borrowingconsist the management. evidence ofimpairmentexists. Thedeterminationofwhatis“signi when therehasbeenasigni Impairment ofequityinvestments relating totheassetssubjectreview. is lowerthanthecarryingamount.Thisrequiresjudgements regardingforecastoffuturerevenuesandexpenses periodical basisandrecordimpairmentlossesintheperiod whenitisdeterminedthattheirrecoverableamount by independentvaluerusingmarketapproach.Suchvaluation isbasedoncertainassumptionsandestimates. estimate usefullivesandresidualvalueswhenthereareanychanges. useful livesandresidualvaluesoftheCompany’sitssubsidiaries’premisesequipmenttoreview Property, premisesandequipment/Depreciation prevailing economicconditions. based upon,amongotherthings,debtcollectionexperience,theagingpro Allowance fordoubtfulaccounts been transferred,takingintoconsiderationtermsandconditionsofthearrangement. required tousejudgmentregardingwhethersigni Leases estimates. Signi These judgmentsandestimatesaffectreportedamountsdisclosuresactualresultscoulddifferfromthese requires managementtomakesubjectivejudgmentsandestimatesregardingmattersthatareinherentlyuncertain. The netamountofinteresttobereceivedfromorpaidthecounterpartyunderanrateswapcontract Provisions arerecognisedwhentheCompanyanditssubsidiarieshaveapresentobligationasresultofpast The Companyanditssubsidiaries treatsavailable-for-saleinvestmentsandother investmentsasimpaired In addition,themanagementisrequiredtoreviewproperty, premisesandequipmentforimpairmentona The Companyanditssubsidiariesmeasurelandatrevalued amounts.Fairvaluefromrevaluationisdetermined In determiningdepreciationofpremisesandequipment,themanagementisrequiredtomakeestimates In determiningallowancesfordoubtfulaccounts,themanagementneedstomakejudgmentandestimates In determiningwhetheraleaseistobeclassi The preparationof

ų cant judgmentsandestimatesareasfollows: ų nancial statementsinconformitywithgenerallyacceptedaccountingprinciplesattimes ų cant orprolongeddeclinein thefairvaluebelowtheircostorwhereotherobjective Ŵ ow ofresourcesembodyingeconomicbene ų ų ed asanoperatingleaseor cant risksandrewardsofownershiptheleasedassethave ų cant” or“prolonged”requires judgementof ų ų ų le ofoutstandingdebtsandthe nance lease,themanagementis ts willberequiredtosettlethe 109 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 110 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 6. Cashandcashequivalents Post-employment bene unit andtochooseasuitablediscountrateinordercalculatethepresentvalueofthosecash testing, requiremanagementtomakeestimatesofcash Goodwill andintangibleassets estimates. appraiser, andrecogniseschangesinthefairvaluepro Investment properties the endofreportingperiod. will arisefromthelitigation,Companyanditssubsidiariesnotrecordprovisionforcontingentliabilities at record provisionforcontingentliabilitiesintheirbooksofaccount.Incaseswhereithasassessedthatnodamage has usedjudgmenttoassesstheoutcomeoflitigation.Incasesloss,Companyanditssubsidiaries will Litigation turnover rate. is madebasedonvariousassumptions,includingdiscountrate,futuresalaryincreasemortalityrateandstaff 7. Restrictedfinancialinstitutionsdeposits and asescrowaccount. government agencies,state enterpriseandprivateentitiestoguaranteecontractual performance,amongothers issued bythebanksonbehalf ofthesubsidiarycompanies.Thesealsorepresentbank depositshaveplacedwith QFSDFOUQFSBOOVN CFUXFFOBOEQFSDFOUQFS "TBU%FDFNCFS CBOLEFQPTJUTJOTBWJOHBDDPVOUT ųYFE Total cashandequivalents Less: Fixeddeposits,noteswithmaturitiesofmore Fixed deposits,notes,andmutualfunds Cash anddepositsatbanks The initialrecognitionandmeasurementofgoodwillotherintangibleassets,subsequentimpairment The Companyanditssubsidiariespresentinvestmentpropertiesatthefairvalueestimatedbyanindependent The Companyanditssubsidiarieshavecontingentliabilitiesarisingfromlitigation.Company'smanagement The obligationunderthede Cash andcashequivalentsconsistofthefollowing: These representbankdeposits thatsubsidiarycompanieshaveplacedwithbanksto securelettersofguarantees Restricted bankdeposits than 3months(short-terminvestments)

ų ts underde ų ned bene ų ned bene ų t planisdeterminedbasedonactuarialtechniques.Suchdetermination ų t plans Ŵ ų EFQPTJUTBOECJMMTPGFYDIBOHFDBSSJFEJOUFSFTUTCFUXFFOB t orloss.Thevaluationinvolvescertainassumptionsand ows tobegeneratedbytheassetorcashgenerating BOOVN  3,589,576 3,880,366 3,138,217 (267,768) 742,149 (23,022) ų 2012 nancial statements Consolidated 3,875,733 4,364,785 1,018,681 3,346,104 (464,366) (24,686) 2011 1,567,094 1,567,104 1,567,094 2012 ų nancial statements - Consolidated (10) 10 Ŵ (Unit: ThousandBaht) ows. 1,520,307 1,520,317 1,520,307 2011 - (10) 10 OE 9. Tradeaccountsreceivable 8. Tradeandotherreceivables Total tradeaccountsreceivable -net Total tradeaccountsreceivable -unrelatedpartiesnet Less: Allowancefordoubtfulaccounts Total tradeaccountsreceivable-unrelatedparties Unrelated parties Total tradeaccountsreceivable-relatedparties Related parties Total tradeandotherreceivables-net Other receivables-unrelatedparties Other receivables-relatedparties Trade receivables-unrelatedparties-net Trade receivables-relatedparties As at31December2012and2011,theaginganalysisofoutstandingtradeaccountsreceivableisasfollows: over 12months 6 -12months 3 -6months Less than3months 6 -12months 3 -6months Less than3months 4,287,064 4,029,369 4,031,646 4,029,369 4,337,054 3,374,010 (307,685) 234,929 2012 224,223 238,351 500,470 ų ų 2012 20,489 nancial statements nancial statements 2,277 2,277 1,997 Consolidated Consolidated 278 2 3,377,112 3,192,485 3,195,398 3,192,485 3,493,385 2,613,130 (300,900) 167,923 233,893 245,702 400,660 012011 2011 012011 2011 13,791 2,913 2,913 2,400 369 144 (126,998) 822,039 800,365 927,363 110,271 129,413 601,912 962,105 800,365 85,767 21,674 21,086 2012 79,578 60,488 21,674 2012 ų ų nancial statements nancial statements 570 18 Separate Separate (Unit: ThousandBaht) (Unit: ThousandBaht) (134,637) 754,039 746,315 880,952 101,585 131,735 121,141 526,491 829,290 746,315 41,557 33,694 7,538 7,724 7,724 180 6 111 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 112 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 10. Relatedpartytransactions parties. Belowisasummaryofthosetransactions. have beenconcludedoncommercialtermsandbasesagreeduponbetweentheCompanythoserelated Sales ofmedicalequipmentand vehicle Interest expenses Other expenses Consulting andmanagementfeeexpenses Service cost Other income Dividend income(Note13) Interest income Consulting andmanagementfeeincome Revenue fromhospitaloperationsandlabservices Subsidiary companies Dividend payment Other expenses Service cost Other income Dividend income(Note12) Revenue fromhospitaloperationsandlabservices Associated companies Purchases ofinvestments Purchases andsalesof Interest chargeofinter-companyloan Rental incomeandrentalexpenses Revenue andexpensesfromconsultingmanagement Revenue fromhospitaloperationandlabservices The signi The Companyanditssubsidiarieshadsigni ų cant intercompanytransactionsareasfollows: ų Transaction xed assets ų cant businesstransactionswithindividualsorrelatedparties,which The samepricesaspurchasesfromunrelatedparties Prices aredependentontheconditionof Interest rateclosetothatchargedbycommercialbanks Rates asstipulatedinagreements Rates asstipulatedinagreements Based onthepricechargedtonormalcustomers 157.9 ų 2012 32.3 10.0 nancial statements 0.6 0.8 ------Consolidated For theyearsended31December Pricing andlendingpolicy 2011 99.2 26.2 3.2 1.8 ------1,874.1 ų 151.2 207.4 485.8 190.3 293.7 268.2 2012 nancial statements 70.0 36.1 92.1 83.3 - - 0.6 0.1 5.0 Separate ų xed assets (Unit: MillionBaht) 1,818.2 2011 153.1 206.2 367.9 236.8 36.6 37.3 55.2 40.2 36.7 61.8 - - 1.2 0.2 1.1 shown inthestatementof Total otheraccountsreceivable-relatedparties Total Others Total Consulting andmanagementfeereceivable Other accountsreceivable-relatedparties Total dividendreceivable-relatedparties Dividend receivable-relatedparties Total tradeaccountsreceivable-relatedparties Trade accountsreceivable-relatedparties Dividend payment Other expenses Service cost Other income Dividend income(Note14) Revenue fromhospitaloperationsandlabservices Individuals orrelatedcompanies The outstandingbalancesoftheabovetransactionsasat31December2012and2011havebeenseparately Related companies Subsidiary companies Associated companies Subsidiary companies A relatedcompany An associatedcompany Related companies Subsidiary companies Associated companies ų nancial positionasfollows: 20,489 20,489 17,451 11,269 134.2 2012 2012 ų ų 3,038 7,798 3,471 2,277 1,601 11.7 nancial statements nancial statements 8.9 2.5 8.0 3.6 676 - - - - Consolidated Consolidated For theyearsended31December 13,791 13,791 5,307 8,484 2,913 2,019 2011 2011 14.9 10.5 11.0 5.8 4.7 894 ------60,488 29,876 29,842 30,612 30,612 21,674 20,905 134.2 ų ų 2012 2012 7,798 7,798 nancial statements nancial statements 1.0 0.9 0.1 8.0 1.3 139 630 - 29 5 Separate Separate (Unit: ThousandBaht) (Unit: MillionBaht) 33,694 11,203 11,203 22,491 22,491 13.6 11.0 2011 2011 7,724 1,107 6,617 0.1 1.9 ------113 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s (Unit: Thousand Baht) Consolidated Separate ųnancial statements ųnancial statements 2012 2011 2012 2011 Leasehold rights - related parties (included in other non-current assets) Associated companies 274,062 272,672 - - Related parties 78,576 85,708 - - Total leasehold rights - related parties 352,638 358,380 - - Deposits and long-term prepaid expense - related parties (included in other non-current assets) Associated company 2,700 2,700 2,700 2,700 Subsidiary companies - - 6,029 122 Total deposits - related parties 2,700 2,700 8,729 2,822 Trade accounts payable - related parties Associated companies 75,356 89,466 53,220 73,782 Subsidiary companies - - 72,989 54,499 Related companies 27 715 - 530 Total trade accounts payable - related parties 75,383 90,181 126,209 128,811 Other accounts payable - related parties Associated companies 7,059 13,126 4 - 114 Subsidiary companies - - 88,233 46,676 Related companies 3,611 5,769 1,008 195 Total other accounts payable - related parties 10,670 18,895 89,245 46,871 Deposits - related parties (included in other non-current liabilities) Associated company 61 - 61 - Subsidiary companies - - 2,399 2,399 Total deposits - related parties 61 - 2,460 2,399

Movement of loans to and loans from related parties during the year are summarised as follows: A n n u a l R e p o r t 2 0 1 2 N o t e s c n l i d a f m (Unit: Thousand Baht) Separate ųnancial statements 31 December 2011 Increase Decrease 31 December 2012 Short-term loans to related parties Subsidiary companies 307,097 456,769 (556,767) 207,099 Total short-term loans to related parties 307,097 456,769 (556,767) 207,099 Long-term loans to related parties Subsidiary companies 1,665,538 4,173,847 (514,405) 5,324,980 Total long-term loans to related parties 1,665,538 4,173,847 (514,405) 5,324,980 Short-term loans from related parties Subsidiary companies 1,627,946 2,796,625 (1,627,946) 2,796,625 Total short-term loans from related parties 1,627,946 2,796,625 (1,627,946) 2,796,625 subsidiaries whereby havetopaymonthly servicefeestothesubsidiary attheratestipulatedin theagreements. which havetopaymonthlyservice andmanagementfeestothesubsidiariesatrates stipulatedintheagreements. Service andmanagementagreement has topayamonthlyrentalfeeattheratestipulatedin theagreement. building fromasubsidiarycompanyforitshospitaloperations, expiringon30April2014.Thatsubsidiarycompany stipulated intheagreement.Inaddition,suchanother subsidiary companyenteredintoanagreementtorentthe of abuilding,expiringon31December2015.Thesubsidiary companyhastopayamonthlyrentalfeeattherate A subsidiary the agreement.Subsequently,subsidiaryextendedagreementto30April2013. in hospitaloperationswherebythesubsidiarycompanyhastopayamonthlyrentalfeeatratestipulated in The Company Long termrentalagreement rates stipulatedintheagreement.Thepaymentmustbemadeonamonthlybasis. agreement isfor1yearandentitledtorenew.Thesubsidiarycompanyshallreceivemanagementincomeat the monthly basis. shall receivemanagementincomeattheratesstipulatedinagreement.Thepaymentmustbemadeon a other 4subsidiarycompanies.Theagreementisfor1-2.5yearsandentitledtorenew.company operation resultasstipulatedintheagreement. expiring on28May2022.Thesubsidiarycompanyistoreceivemanagementincomeatacertainpercentageoftotal The Subsidiaries on thenetrevenuefromhospitaloperations. The Company Management agreement 5,532.1 million(2011:Baht1,972.6million). at 31December2012,theCompanyhasoutstandingshorttermandlongloanstosubsidiariestotalingBaht agreement payableonamonthlybasiswhileprincipalisrepayablethestipulatedinagreements.As ų years withitssubsidiaries.TheCompanychargedinterestonloanstorelatedpartiesattheFixedDepositRateplus Short-term andlong-termloanstorelatedparties xed rateperannum,LIBORplus A subsidiarycompanyhasentered intoinformationtechnologymanagementagreements withtheCompanyand A subsidiarycompanyhasentered intoserviceandmanagementagreementswiththe Companyandsubsidiaries A subsidiarycompanyenteredintoanagreementtorent landfromanothersubsidiarycompanyforconstruction In May2004,asubsidiarycompanyenteredintothree-yearagreementtorentlandfromtheCompanyforuse A subsidiarycompanyhasenteredintoaHospitalManagementAgreementwith3companies.The A subsidiarycompanyhasenteredintoaHospitalManagementAgreementwithits4companiesand A subsidiarycompanyhasenteredintoaHospitalManagementAgreementwithanothercompany, The Companyprovideshospitalmanagementservicestoitssubsidiaries,fortheremunerationratesarebased The Companyhasenteredintoshort-termloanagreementsandlong-termwithtermsof3-8 ų xed rateperannumandMLRminus ų xed rateperannumstipulatedinthe 115 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 116 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 11. Inventories directors andmanagementasbelow. Directors andmanagement’sbene associated company. facility amountingtoUSD0.8million(2011:1million)foranoverseassubsidiarycompany. Guarantee obligationswithrelatedparties The Companyhasextendedtheagreementfor25monthsendedon30September2015. agreement stipulatesthemonthlyminimumservicefeethatassociatedcompanyistoearnfromCompany. Company. Theagreementisforaperiodof3yearsfromthedateservicecommencedandrenewable. Associated company Air ambulanceserviceagreement has topaymonthlyservicefeesattheratestipulatedinagreements rates stipulatedintheagreements. and subsidiarieswherebytheCompanyhavetopaymonthlyservicefeesubsidiaryat Total Less: Provisionfordeterioratedinventories Supplies andothers Reagent Medicines andmedicalsupplies Total Post-employment bene Short-term employeebene During theyearended31December2012and2011,Companyitssubsidiarieshadbene A subsidiarycompanyhasguaranteedcreditfacilitywith The Companyhasguaranteedlong-termloanamountofUSD3.1million(2011:3.6million)andoverdraft On 1September2007,anassociatedcompanyenteredintoairambulanceserviceagreementwiththe A subsidiarycompanyhasenteredintomanagementagreementswithanotherwherebyit A subsidiarycompanyhasenteredintofoodprovidingandmaintenanceserviceagreementswiththeCompany ų ts ų ts ų ts ų 779,882 782,502 672,814 115.6 115.0 nancial institutionamountofBaht3.9millionforan 37,854 71,834 ų ų 2012 2012 (2,620) nancial statements nancial statements 0.6 Consolidated Consolidated 1,037,727 1,039,285 904,876 49,584 84,825 2011 2011 82.2 81.7 (1,558) 0.5 93,063 93,063 91,267 ų ų (1,796) 2012 2012 115.6 115.0 nancial statements nancial statements 0.6 - - Separate Separate (Unit: ThousandBaht) (Unit: MillionBaht) ų ts fortheir 230,927 231,928 231,928 2011 2011 81.7 82.2 (1,001) 0.5 - - 12. Investments in associated companies (Unit: Thousand Baht) Consolidated Separate Natures of Paid-up % Share ųnancial statements ųnancial statements Company’s name business Capital holding Equity Method Cost Method 2012 2011 2012 2011 2012 2011 Associated companies held by the Company The Medic Pharma Co., Ltd. Pharmaceuticals Baht 21.4 million 49.00 49.00 165,167 144,140 52,500 52,500 Cool & Joy Co., Ltd. Production of television and radio program Baht 5 million 30.00 30.00 1,069 1,069 1,500 1,500 S.R. Property Investment Co., Ltd. Real estate Riel 20 million 49.00 49.00 2,093 1,837 101 101 Siem Reap Land Investment Co., Ltd. Real estate Riel 20 million 49.00 49.00 1,764 1,529 101 101 Phnom Penh First Property Co., Ltd. Real estate Riel 20 million 49.00 49.00 3,532 2,947 88 88 Bangkok Helicopter Services Co., Ltd. Service Baht 100 million 49.00 49.00 34,977 38,134 50,859 50,859 Ramkhamhaeng Hospital Public Co., Ltd. Hospital Baht 120 million 38.24 38.24 2,835,589 2,329,480 1,459,800 1,459,800 Krungdhon Hospital Public Co., Ltd. Hospital Baht 150 million 20.01 20.01 104,179 107,865 101,072 101,072 Udon Pattana (1994) Co., Ltd. (held by the Company at 15.26% and indirectly held by subsidiary at 9.83% (2011: 9.71%)) Hospital Baht 300 million 25.09 24.97 185,430 180,101 69,952 69,952 Bumrungrad Hospital Public Co., Ltd. Hospital Baht 730 million 23.88 - 9,523,489 - 7,452,961 - Total investments in associated companies held by the Company 12,857,289 2,807,102 9,188,934 1,735,973 Associated companies held 117 by the subsidiary companies Sodexo Support Services (Thailand) Co., Ltd. Management services Baht 5 million 26.00 26.00 6,412 8,118 Al Ghaith Bangkok Dusit Management Management UAE DIRHAM Services LLC. services 0.15 million 30.00 30.00 393 393 Total investments in associated company held by the subsidiary companies 6,805 8,511 Total investments in associated companies in the consolidated ųnancial statements 12,864,094 2,815,613

12.1 Additional investments in associated companies A n n u a l R e p o r t 2 0 1 2 N o t e s c n l i d a f m Bumrungrad Hospital Public Co., Ltd. In the ųrst quarter of 2012, the Company additionally purchased ordinary shares of Bumrungrad Hospital Public Co., Ltd. for total of 44.2 million shares, amount of Baht 2,234.9 million, representing 6.06 percent of shareholding. As a result, the Company holds totally 20.28 percentage of shareholding in that company and changes its status to become an associated company. The Company realised gain from the remeasurement of its previously held shareholding to fair value in the consolidated statement of income by Baht 1,795.0 million, under the caption “Gain on fair value adjustment of investment” and reversed gain on change in value of available-for-sale invest- ments due to transfer of investment from other long-term investments to investments in associated companies amounting to Baht 1,372.3 million in the statements of comprehensive income.

In the second quarter of 2012, the Company additionally purchased ordinary shares of Bumrungrad Hospital Public Co., Ltd. for total of 26.3 million shares, amount of Baht 1,762.2 million. As a result, the Company's share- holding in that company increased to 23.88 percent. 118 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s of Thailand by Baht39million,underthecaption from theremeasurementofitspreviouslyheldshareholdingtofairvalueinconsolidatedstatementincome holding inthatcompanyandchangesitsstatustobecomeanassociatedcompany.TheCompanyrealisedgain (1994) Co.,Ltd.fromtheformershareholders.Asaresult,Companyholdstotally24.97percentageofshare- investment of1,577,000shares,totalingBaht38.30millionor5.26percentageshareholdinginUdonPattana tage ofshareholdingbytheCompany.Subsequently,duringyear2011,Companypurchasedadditional the subsidiarycompany,has10percentageofshareholdinginUdonPattana(1994)Co.,Ltd.or9.71indirectpercen- Udon Pattana(1994)Co.,Ltd. 12.2 Detailsofshareincomeanddividendreceivedfromtheassociatedcompaniesaresetoutbelow. reversed allowanceforimpairmentofsuchinvestmentsBaht12.3millionin2011. Total Bumrungrad HospitalPublicCo., Ltd. Krungdhon HospitalPublicCo.,Ltd. Ramkhamhaeng HospitalPublic Co., Ltd. Total Al GhaithBangkokDusitManagementServicesLLC. Sodexo SupportServices(Thailand)Co.,Ltd. Associated companiesheldbythesubsidiary Bumrungrad HospitalPublicCo.,Ltd. Udon Patana(1994)Co.,Ltd. Krungdhon HospitalPublicCo.,Ltd. Ramkhamhaeng HospitalPublicCo.,Ltd. Bangkok HelicopterServicesCo.,Ltd. Phnom PenhFirstPropertyCo.,Ltd. Siem ReapLandInvestmentCo.,Ltd. S.R. PropertyInvestmentCo.,Ltd. Cool &JoyCo.,Ltd. The MedicPharmaCo.,Ltd. Associated companiesheldbytheCompany Below arefairvaluesofinvestmentsinassociatedcompanies thatarelistedcompaniesontheStockExchange As aresultofpurchasinginvestmentasstatedinNote13.3and13.4,PrasitPatanaPublicCompanyLimited, Company’s name Company’s name “gain onfairvalueadjustmentofinvestments” Share ofincome/(loss) 967,663 497,719 431,080 associated companies from investmentsin 27,327 ų 2012 (3,157) 5,404 5,329 2,658 nancial statements 683 303 317 - - Consolidated 20,272,865 12,901,915 7,231,356 139,594 2012 Fair valuesasat31December 381,645 349,806 22,811 2011 (2,827) 3,508 7,006 693 309 339 - - - - . TheCompanyhasalso 268,193 200,828 55,061 ų Dividend received 2012 6,004 6,300 nancial statements during theyear ------3,685,714 3,588,148 Separate 2011 97,566 (Unit: ThousandBaht) (Unit: ThousandBaht) - 55,061 61,812 2011 5,250 1,501 ------13. Investmentsinsubsidiarycompanies 12.3 Belowisasummaryof calculated basedonaudited million) representing96percent(2011:94percent)oftotalshareincomefromallassociatedcompanieswere of Thailandfortheyearended31December2012Baht931million(2011:twoassociatedcompanies 357 Al GhaithBangkokDusitManagement Sodexo SupportServices(Thailand)Co.,Ltd Associated companiesheld Bumrungrad HospitalPublicCo.,Ltd. Udon Patana(1994)Co.,Ltd. Krungdhon HospitalPublicCo.,Ltd. Ramkhamhaeng HospitalPublicCo.,Ltd. Bangkok HelicopterServicesCo.,Ltd. Phnom PenhFirstPropertyCo.,Ltd. Siem ReapLandInvestmentCo.,Ltd. S.R. PropertyInvestmentCo.,Ltd. Cool &JoyCo.,Ltd. The MedicPharmaCo.,Ltd. Associated companiesheldbytheCompany National Healthcare SystemsCo.,Ltd. Bangkok RatchasimaHospitalCo.,Ltd. Wattanavej Co.,Ltd. Bangkok Trat HospitalCo.,Ltd. Bangkok SamuiHospitalCo.,Ltd. Bangkok RayongHospitalCo.,Ltd. Bangkok PattayaHospitalCo.,Ltd. Bangkok PhrapradaengHospitalCo.,Ltd. BNH MedicalCenterCo.,Ltd. Bangkok PhuketHospitalCo.,Ltd. Bangkok HospitalHatyaiCo.,Ltd. Samitivej PublicCo.,Ltd. Share ofincomefrominvestmentinthreeassociatedcompanieswhicharelistedcompanyontheStockExchange Services LLC. by thesubsidiarycompanies Company’s name Company’s name ų ų nancial statementsofthosecompanies. nancial informationofassociatedcompanies of business Central Lab Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Nature Baht 730million Baht 300million Baht 150million Baht 120million Baht 100million Baht 21million Riel 20million Riel 20million Riel 20million Baht 5million Baht 5million UAE DIRHAM 0.15 million 2012 adu aia oa iblte Total revenues Total liabilities Paid-up capital Baht 1,000million Baht 300million Baht 180million Baht 250million Baht 150million Baht 400million Baht 280million Baht 105million Baht 586million Baht 500million Baht 500million Baht 75million Baht 300million Baht 150million Baht 120million Baht 100million Baht 21million Paid-up Riel 20million Riel 20million Riel 20million capital Baht 5million Baht 5million UAE DIRHAM 0.15 million 2011 - As at31December 15,861.8 1,086.5 6,766.5 2012 100.00 100.00 415.4 152.6 305.7 235.1 141.0 Total assets 2012 74.02 90.36 99.69 99.76 97.27 79.00 91.48 99.68 98.79 95.76 61.4 67.4 - 2.9 % Share holding 1,071.1 5,415.0 2011 100.00 100.00 105.7 356.5 312.9 258.5 145.9 2011 74.02 89.73 99.69 99.76 97.22 79.00 91.48 99.68 98.78 95.76 63.5 69.8 - - 2.9 7,474.2 2,143.2 2012 105.7 127.9 361.9 164.9 133.8 1,639,071 48.7 57.8 63.1 923,936 450,643 245,889 150,000 415,020 708,966 602,655 610,153 574,458 - - 2012 Investments -cost 56,768 96,775 2,110.2 method 2011 361.7 180.7 139.9 37.5 60.4 66.0 91.4 74.5 Separate - - - 1,639,071 917,286 450,643 245,889 150,000 415,020 708,196 602,655 610,153 574,373 2011 14,041.6 56,768 96,775 For theyearsended31December 3,572.1 2012 430.8 304.4 443.9 467.0 61.4 ų - - 1.4 0.6 0.7 nancial statements 3,044.1 2011 371.5 319.3 393.5 295.9 517,382 160,857 124,606 430,936 70.0 2012 59,274 35,890 14,963 33,750 - - - 1.5 0.6 0.7 (Unit:ThousandBaht) Dividend received - - - - during theyear (Unit: MillionBaht) 2,667.5 1,127.3 2012 Net income (7.5) 57.5 20.8 21.3 13.3 - - 1.4 0.6 0.6 (loss) 179,450 180,000 244,982 147,447 384,970 2011 66,622 19,951 45,000 79,739 34,573 2011 909.0 - - 55.7 (5.9) 13.5 22.9 35.0 - - - 1.4 0.6 0.7 119 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 120 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s Co., Ltd.Asaresult,theCompany's shareholdinginthatcompanyincreasedto97.27 percent. Bangkok PattayaHospitalCo., Ltd. Co., Ltd.Asaresult,theCompany'sshareholdinginthat companyincreasedto98.79percent. Bangkok HospitalHatyaiCo.,Ltd. 13.1 Total investmentsinsubsidiary Less: Allowanceforimpairmentofinvestment Total investments insubsidiarycompanies Bangkok HospitalUdonCo.,Ltd. Bangkok HospitalChiangmaiCo.,Ltd. Bangkok PremierLifeInsurance Thai MedicalCenterPublicCo.,Ltd. Siam MedicalCo.,Ltd. Paolo SamutprakarnCo.,Ltd. Paolo MedicCo.,Ltd. Prasit PatanaPublicCo.,Ltd. BDMS Training Co.,Ltd. Bangkok HospitalKaoYai Co.,Ltd. Greenline SynergyCo.,Ltd. Royal BangkokHealthcareCo.,Ltd. Bangkok HealthInsuranceLimited New PetchburiMedicalServicesCo.,Ltd. Asia InternationalHealthcareCo.,Ltd. B.D.M.S. InternationalMedical Royal RattanakMedicalServicesCo.,Ltd. Phnom PenhMedicalServicesCo.,Ltd. Angkor PisithCo.,Ltd. Bio MolecularLaboratories In 2012,theCompanypurchased additionalinvestmenttotalingBaht0.8million inBangkokPattayaHospital In 2012,theCompanypurchasedadditionalinvestment totalingBaht0.1millioninBangkokHospitalHatyai companies -net Broker Co.,Ltd. Services Co.,Ltd. (Thailand) Co.,Ltd. previously held Additional investmentsin2012subsidiarycompanies whichtheCompanyanditssubsidiaries Company’s name Health insurance Training business and information Life insurance of business Management Investment Central Lab Technology Investment Nature Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital service service broker Riel 9,200million Riel 26,000million Baht 1,108million Baht 500million Baht 250million Baht 201million Baht 100million Baht 300million Baht 200million Baht 736million Baht 105million USD10million Baht 20million Baht 42million Baht 70million Baht 35million Baht 10million USD 10million Baht 1million Baht 1million Paid-up capital 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2012 99.76 85.69 93.30 98.32 99.94 70.00 80.00 95.00 % Share holding 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2011 99.76 80.72 88.73 97.14 99.94 70.00 100.0 80.00 95.00 - - 24,917,354 24,937,354 9,236,292 1,733,240 2,922,872 2012 Investments -cost 499,930 250,000 887,135 939,589 200,000 736,000 154,063 338,323 287,840 (20,000) 20,000 70,000 47,027 35,000 94,208 1,000 9,502 999 method Separate 23,925,320 23,945,320 1,675,754 2,922,872 9,109,950 2011 887,135 904,818 154,063 338,323 287,840 200,000 736,000 (20,000) 35,000 94,208 70,000 47,027 4,000 1,000 9,502 - - 999 ų nancial statements 1,874,097 414,054 Dividend received 2012 63,296 (Unit:ThousandBaht) during theyear 7,600 4,036 7,453 ------1,818,168 399,900 2011 18,400 4,750 4,931 7,453 ------The subsidiary companywasincorporated inMay2012andhasBaht 250millionpaid-upsharecapital. Chiangmai province. ThiscompanyhasBaht 1,000millionofregistered capitalandtheCompanyholds 100percent. subsidiary company,namely BangkokHospitalChiangmaiCompanyLimited,to operate ahospitalbusinessin Bangkok HospitalChiangmai Co.,Ltd. 13.2 Investmentinanewsubsidiary companyduringtheyear acquired alloftheadditionalshares. 1,600,000 additionalordinaryshareswithaparvalueof Baht10pershare,totaling16million.TheCompany Broker Co.,Ltd.passedaresolutiontoincreaseitsshare capitalfromBaht4millionto20byissuing Bangkok PremierLifeInsuranceBrokerCo.,Ltd. As aresult,theCompany'sshareholdinginthatcompany increasedto85.69percent. Siam MedicalCo.,Ltd. Ltd. Asaresult,theCompany'sshareholdinginthatcompanyincreasedto93.30percent. Paolo SamutprakarnCo.,Ltd. 66.53 percent. General HospitalPublicCo.,Ltd.Asaresult,thesubsidiarycompany’sshareholdinginthatcompanyincreased to Prasit PatanaPublicCo.,Ltd.andSrirachaNakornGeneralHospital Co., Ltd.Asaresult,thesubsidiarycompany’sshareholdinginthatcompanyincreasedto98.20percent. Prasit PatanaPublicCo.,Ltd.andPhyathai3Hospital Co.,Ltd. Asaresult,thesubsidiarycompany’sshareholdinginthatcompanyincreasedto99.15percent. Prasit PatanaPublicCo.,Ltd.andPhyathai2Hospital to beBaht1,108,208,020. offsetting withde written-off non-issuedshares.Thesubsidiarycompanyhasalsodecreaseditsissuedandfullypaid-upsharesby 1 each,totalingBaht390,773,228,fromformalregisteredshare2,732,047,520tobe2,341,274,292by Ltd. Asaresult,theCompany'sshareholdinginthatcompanyincreasedto98.32percent. Prasit PatanaPublicCo.,Ltd. Co., Ltd.Asaresult,theCompany'sshareholdinginthatcompanyincreasedto90.36percent. Bangkok RatchasimaHospitalCo.,Ltd. On 25April2012,ameeting oftheBoardDirectorsCompanyapproved establishmentofanew On 3September2012,theExtraordinaryMeetingofShareholders No.3/2012ofBangkokPremierLifeInsurance In 2012,theCompanypurchasedadditionalinvestment totalingBaht34.8millioninSiamMedicalCo.,Ltd. In 2012,theCompanypurchasedadditionalinvestmenttotalingBaht57.5millioninPaoloSamutprakarnCo., In 2012,thesubsidiarycompanypurchasedadditionalinvestmenttotalingBaht37.3millioninSrirachaNakorn In 2012,thesubsidiarycompanypurchasedadditionalinvestmenttotalingBaht2.4millioninPhyathai3Hospital In 2012,thesubsidiarycompanypurchasedadditionalinvestmenttotalingBaht0.7millioninPhyathai2Hospital In addition,PrasitPatanaPublicCo.,Ltd.hasdecreasedits390,773,228registeredshareswithparvalueofBaht In 2012,theCompanypurchasedadditionalinvestmenttotalingBaht126.3millioninPrasitPatanaPublicCo., In 2012,theCompanypurchasedadditionalinvestmenttotalingBaht6.7millioninBangkokRatchasimaHospital ų cit amountofBaht1,233,066,272,fromformalissuedandfullypaid-upshares2,341,274,292 121 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 122 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s Goodwill frommerger entire businesstransferagreement. in a).Aftermerger,theCompanyhasadditionalinvestmentsubsidiarycompaniesasfollows: transfer on1April2011bypayingthetotalconsiderationofBaht11,484million(Seepaidsummary into themergerwithHealthNetworkPublicCompanyLimitedandhascompletedentirebusiness 13.3 MergerwithHealthNetworkPublicCompanyLimitedin2011 Co., Ltd.,totalingBaht499.9million,tooperateahospitalbusinessinUdonthaniprovince. Bangkok HospitalUdonCo.,Ltd. Total considerationpaid forcalculatinggoodwill Add :FairvalueoftheCompany’sexisting19.47%shareholding in PrasitPatanaPublicCompanyLimited Total consideration Novation ofloan Cash The Companyissued230,870,405ordinaryshares(calculationfromfairvalueatacquisitiondate) * IncludingtheCompany’sexisting19.47%shareholdinginPrasitPatanaPublicCompanyLimitedandresultedachange 5) ThaiMedicalCentrePublicCompanyLimited 4) SiamMedicalCompanyLimited 3) PaoloSamutprakarnCompanyLimited 2) PaoloMedicCompanyLimited 1) PrasitPatanaPublicCompanyLimitedanditssubsidiaries value intheconsolidatedstatementofincomebyBaht440million,undercaption“gainonfairadjustmentinvestme this companytoasubsidiarycompany.TheCompanyrealisedgainfromtheremeasurementofitspreviouslyheldshareholding a) Considerationpaidforgoodwillcalculationisasfollows: The CompanyandHealthNetworkPublicLimitedmustcomplywiththeconditionsstipulatedin On 24February2011,theExtraordinaryGeneralMeetingofCompanyapprovedfortoenter In thesecondquarterof2012,Companyinvesteda100percentshareholdinginBangkokHospitalUdon opn %ofsharesheld Company 100.00% 99.76% 80.72% 88.73% 68.64%* (Unit: ThousandBaht) 12,996,662 11,484,103 10,424,687 1,512,559 379,416 680,000 status of nts”. fair capital increasehasbeenoffsetwithsharepremiumunder shareholders'equityinstatementsof income statementsforamountofBaht43.4millionand thecostofBaht146.1millionwhichwasrelatedtoshare Company Limited,offeringthe twofollowingoptionsofpaymenttoshareholders: 13.4 Tender offertopurchasesecuritiesofPrasitPatanaPublicCompanyLimited Goodwill Consideration paid Net assetacquired Less :Non-controllinginterest Fair valueofnetassets Other non-currentliabilities Provision forlong-termemployeebene Liabilities under Long-term loansfrom Other currentliabilities Income taxpayable Trade accountspayable Other non-currentassets Intangible assets-net Property, premisesandequipment-net Investment property Other long-terminvestments-net Restricted Long-term depositat Other currentassets Inventories Short-term loantoarelatedcompany Trade accountsreceivable-net Short-term investments Cash andcashequivalents The costofmergerandtenderoffertotalingBaht189.5 millionhasbeenseparatelyrecordedasexpensein 2. TheCompany’snewlyissued ordinarysharesattheratioof10.1706inPrasit PatanaPublicCompany 1. CashpaymentofBaht3.71 pershare On 7April2011,theCompanysubmittedatenderoffer proposaltopurchasesecuritiesofPrasitPatanaPublic b) Thefairvalueofassetsandliabilitiesatacquisitiondateareasfollows: Limited to1shareintheCompany, equalingBaht37.75pershare. ų nancial institutiondeposits ų nance leaseagreement ų ų nancial institution nancial institutions ų ts ų 12,996,662 nancial position. (1,336,070) (5,565,664) (Unit: ThousandBaht) 1,986,099 9,310,200 3,686,462 5,022,532 9,342,016 (937,341) (304,132) (205,270) (833,921) (311,239) (463,867) 244,233 110,889 158,317 360,000 818,977 264,357 188,269 34,400 24,094 50,000 62,315 123 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 124 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 14. Otherlong-terminvestments Company's shareholdinginthatcompanyasat31December2011was97.14percent. totaling Baht4.04millioninPrasitPatanaPublicCompanyLimitedfromtheformershareholders.Asaresult, percent. from fairvalueatacquisitiondate).Asaresult,theCompany'sshareholdinginthatcompanyincreasedto97.10 Baht 43.34millionandissuing64.4ordinarysharesoftheCompany,totaling2,896.56(calculation Prasit PatanaPublicCompanyLimitedof666.34millionshares,totalingBaht2,939.9bycashpayment Total otherlong-terminvestmentsin Investments inunrelatedcompanies Udon Patana(1994)Co.,Ltd.* Superior BiotechHoldingCo.,Ltd. Thai LongstayManagementCo.,Ltd. Investments inunrelatedcompanies Investments inrelatedcompanies X-Ray ComputerUrupongCo.,Ltd. Bangkok AirwaysCo.,Ltd. Investments inrelatedcompanies Investments inlistedsecurities Surplus onchangesinvalueof Bangkok ChainHospitalPublicCo.,Ltd. Bumrungrad HospitalPublicCo.,Ltd. Aikchol HospitalPublicCo.,Ltd. Thai MilitaryBankPublicCo.,Ltd. Investments inlistedsecurities Available-for-sale investments Investments heldbytheCompany * Changestatustobecomeassociatedcompanyin2011 In addition,inthethirdquarterof2011,Companypurchasedadditionalinvestment1.09millionshares, After Tender offercompletionon 23May,2011,theCompanyhasadditionalinvestmentinordinarysharesof the separate available-for-sale investments Company's name ų nancial statements Travel business of business Investment X-ray lab Hospital Hospital Hospital Hospital Nature Airline Bank (Million Baht) Paid-up capital 41,372 1,200 1,995 300 100 100 730 125 44 % share holding 10.00 14.22 9.09 1.06 4.09 1.20 1.50 0.20 - 322,451 276,400 271,949 269,829 Investment (cost) 2012 40,520 36,000 5,000 4,520 1,770 5,531 4,451 - - 531 350 Consolidated andseparate 4,830,049 1,372,094 3,457,955 3,455,835 4,876,100 ų nancial statements 2011 40,520 36,000 4,520 5,531 5,000 1,770 - - 531 350 12,874 Dividend income 2012 during theyears 7,798 4,631 4,631 4,541 8,043 (Unit:ThousandBaht) 245 200 200 - - - - 88 2 99,160 11,075 10,830 87,345 87,345 87,281 2011 740 600 140 245 - - - 63 1 companies. them asinvestmentsinsubsidiary companiesbecausethesubsidiarycompany has nopowertocontrolsuch Investments inordinaryshares(ceasedoperations)-Subsidiary companies and operatingpolicydecisionsofthatcompany. it asinvestmentinassociatedcompanybecausethesubsidiary companyhasnopowertoparticipateinthe Prasitthirat CompanyLimited Ltd. fortotalof30millionshares,amountBaht269.83 million,representing1.50percentofshareholding. Bangkok ChainHospitalPublicCompanyLimited Total other long-terminvestments-net Investment inordinaryshares Less :Allowanceforimpairmentofinvestment Phuket HospitalPublicCo.,Ltd. Unrelated company Phyathai HerbsCo.,Ltd. Phuket ParadiseCo.,Ltd. Klass -VCo.,Ltd. Phyathai 4Hospital(PetchaburiRoad)Co.,Ltd. Subsidiary companies (ceased operations) Investments inordinaryshares Investments inunrelatedcompanies Asia LaboratoriesCenterLimited Udon Patana(1994)Co.,Ltd.* Phuket InternationalHospitalCo.,Ltd. Prasitthirat Co.,Ltd. Thai HerbalProductsCo.,Ltd. Investments inunrelatedcompanies by thesubsidiarycompanies Investment held * Changestatustobecomeassociatedcompanyin2011 A subsidiarycompanyhasinvestments incompaniesthathaveceasedtheiroperations buthasnotclassi A subsidiarycompanyhad33.33percentageofshareholding inPrasitthiratCompanyLimitedbuthasnotclassi In thesecondquarterof2012,CompanypurchasedordinarysharesBangkokChainHospitalPublicCo., in theconsolidated (ceased operations)-net Company's name ų nancial statements Hospital In processofliquidation Adjudged bankrupt Adjudged bankrupt Adjudged bankrupt Central lab Hospital Hospital Educational institution Sales ofherbalproducts of business Nature Paid-up (Million capital Baht) 300 195 150 358 196 409 250 328 80 5 % share holding 19.08 63.64 72.26 89.66 89.79 10.00 33.33 8.00 6.15 0.60 495,774 137,434 107,192 35,889 42,889 42,889 29,552 Investment (cost) 2012 (7,000) - - - - - 400 290

Consolidated andseparate ų 5,049,423 nancial statements 137,434 107,192 2011 35,889 42,889 42,889 29,552 (7,000) - - - - - 400 290

Dividend income 16,564 during theyears 2012 3,690 3,600 (Unit:ThousandBaht) ------50 40 ų 103,528 nancial 2011 4,368 2,700 1,000 ------600 ų 20 48 ų ed ed 125 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 126 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 15. Investmentproperties 16. Property,premisesandequipment based onIncomeapproach. accredited independentvaluer,usingtheMarketapproach.Thefairvalueofbuildingforrenthasbeendetermined land andbuildingforrent.Thefairvalueofhasbeendeterminedbasedonvaluationsperformedby an Transfer in/(Transfer out) Purchases Increase fromrevaluation 31 December2011 Translation adjustment Disposals /Written-off Transfer in/(Transfer out) Purchases Increase fromrevaluation Increase fromacquisition 31 December2010 Cost/reappraised value 31 December2012 Gain onrevalueofassets Transfer fromproperty, Purchase 31 December2011 Gain onrevalueofassets Transfer fromproperty, Purchase Increase fromacquisition 31 December2010 The investmentpropertiesoftheCompanyanditssubsidiariesconsist premises andequipment premises andequipment Assets whichare Land andland or reappraised stated atcost improvement 1,092,854 8,545,410 2,860,267 5,345,964 330,145 512,526 value - - - 8,985 49 35,445 35,445 34,400 Land 1,045 Consolidated ------improvement Building and 24,190,680 16,130,196 building 1,223,027 7,079,417 370,332 629,089 793,454 (35,925) 17,571 - - Building 187,350 154,781 135,177 ų 17,877 12,008 19,604 equipment 11,831,078 nancial statements 2,684 machine Medical 1,810,257 1,354,679 2,969,286 7,633,783 Consolidate tools, (196,395) - - - and 64,852 66,232 3,493 - - furniture, equipment, qimn eilsTotal Vehicles equipment and of Structure ų 222,795 190,226 135,177 Assets whicharestatedatcost 5,807,481 1,006,114 4,282,332 nancial statements (106,133) 34,400 17,877 12,008 19,604 Total 216,474 635,547 101,924 518,730 2,684 1,045 - 4,514 - - ų ų ce xture 619,274 121,255 462,439 (33,312) 90,440 67,475 271,035 271,035 252,966 2,431 1,177 18,069 Land - - 240 Separate ------and medicaltools under installation and equipment Building under construction (1,512,759) 1,693,874 1,496,430 ų (595,984) 964,574 279,925 822,939 nancial statements Building 25,264 187,350 154,781 135,177 17,877 12,008 19,604 (288) - - 2,684 - - - (Unit: ThousandBaht) (Unit: ThousandBaht) 14,316,264 34,677,653 52,490,353 458,385 425,816 135,177 252,966 3,864,692 6,116,426 17,877 12,008 18,069 19,604 (372,053) Total 512,526 (56,270) 2,684 51,082 (5,975) 8,985 - ercaincagdicue nicm ttmn o h er Depreciation chargedincludedinincomestatementfortheyear 31 December2012 31 December2011 Net bookvalue 31 December2012 impairmentloss 31 December2011 Reversal ofimpairmentloss 31 December2010 Impairment of 31 December2012 Translation adjustment Disposals /Written-off Transfer in /(Transfer out) Depreciation fortheyear 31 December2011 Translation adjustment Disposals /Written-off Transfer in/(Transfer out) Depreciation fortheyear Increase fromacquisition 31 December2010 Accumulated depreciation 31 December2012 Translation adjustment Disposals /Written-off 2012 (Baht2,294millionincludedincostofhospitaloperations,salesandservices, andthebalanceinadministrativeexpense 2011 (Baht2,114millionincludedincostofhospitaloperations,salesandservices, andthebalanceinadministrativeexpense ų xed assets Assets whichare Land andland or reappraised stated atcost improvement 10,120,624 10,150,790 8,517,616 value 24,839 25,297 17,482 2,955 4,869 1,914 2,955 7,011 ------458 330 16 improvement Building and 10,702,252 11,811,303 14,351,468 13,488,428 26,162,771 building 1,139,359 1,089,527 2,468,573 7,161,985 (25,304) (27,009) (12,098) (32,292) (2,045) (1,254) - - - 2,696 4,775 (750) 750 Consolidate equipment 13,337,004 4,843,502 machine 1,717,567 1,149,986 7,460,626 1,036,963 5,053,853 4,370,452 8,283,151 Medical (367,228) (193,226) (325,328) tools, and 53,134 (1,955) (2,133) ------2,686 ų nancial statements furniture, equipment, qimn eilsTotal Vehicles equipment and of 3,425,594 Structure 6,508,040 1,777,905 1,398,061 4,730,135 4,409,420 Assets whicharestatedatcost (148,551) (139,351) 462,811 422,604 711,822 (96,028) (58,215) (2,911) (2,845) - - - - - 3,643 100 ų ų ce xture 460,190 503,320 367,289 692,772 189,452 159,084 (18,287) (31,952) (19,165) (continued) 61,574 56,119 69,275 (157) (744) (208) ------203 and medicaltools under installation and equipment Building under construction 1,658,644 1,496,430 1,658,644 (17,384) (1,517) ------s) s) (Unit: ThousandBaht) 25,353,206 23,057,327 33,151,946 29,430,071 15,815,852 58,510,021 2,814,188 2,814,188 2,605,543 2,605,543 4,974,248 (509,975) (346,510) (568,753) (34,556) (7,180) (1,154) (1,034) 9,228 4,869 1,914 2,955 3,705 (750) 127 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 128 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s in theconsolidatedstatements ofcomprehensiveincome. increased fromthebookvalue ofBaht9million.TheCompanythereforerecorded its landusingthemarketapproach.Thefairvaluesof therevaluedlandamountedtoBaht203millionwhich ercaincagdicue nicm ttmn o h er Depreciation chargedincludedinincomestatementfortheyear 31 December2012 31 December2011 Net bookvalue 31 December2012 Disposals /Written-off Transfer in /(Transfer out) Depreciation fortheyear 31 December2011 Disposals /Written-off Transfer in /(Transfer out) Depreciation fortheyear 31 December2010 Accumulated depreciation 31 December2012 Disposals /Written-off Transfer in /(Transfer out) Purchases Increase fromrevaluation 31 December2011 Disposals /Written-off Transfer in/(Transfer out) Purchases Cumulative effectofchange 31 December2010 Cost/reappraised value In 2011,asubsidiaryhasrecordedappraisalresultwhich engagedanindependentappraisertoappraiseallof 2012 (Baht573millionincludedincostofhospitaloperations,salesandservices, andthebalanceinadministrativeexpenses) 2011 (Baht594millionincludedincostofhospitaloperations,salesandservices, andthebalanceinadministrativeexpenses) in accountingpolicy Assets whichare Land andland or reappraised improvement stated atcost 1,018,331 1,863,384 1,863,384 (252,966) au Assetswhicharestatedatcost value 721,250 352,237 789,897 789,897 24,532 ------improvement Building and building 1,627,979 4,674,036 4,587,759 4,352,682 1,899,330 2,556,935 2,688,429 2,117,101 130,548 104,529 273,402 222,817 91,199 (8,184) (2,051) (3,893) (1,153) 3,262 - - - - equipment 1,187,457 1,067,284 2,201,999 1,612,937 3,389,456 1,934,956 3,002,240 2,606,095 machine Medical 326,642 334,441 465,521 400,663 tools, (67,398) (83,005) and (4,623) (4,943) Separate 4,700 - - - - 425 furniture, ų equipment, qimn eilsTotal Vehicles equipment and of nancial statements Structure 1,101,093 1,649,713 1,448,757 1,248,721 1,224,092 1,173,838 163,613 112,964 425,621 274,919 (25,639) (25,452) 77,309 62,982 94,705 75,706 (5,510) (7,633) - - - 946 ų ų ce xture 124,096 124,604 173,041 117,319 147,863 143,389 (13,923) (14,978) 48,945 30,544 10,391 28,859 19,452 (3,614) (3,681) 6,638 ------"Gain onrevaluationofland" medical toolsand equipment under construction and Building under installation (246,520) 124,050 249,510 365,735 127,030 365,735 313,487 127,030 (74,782) ------(10) (Unit: ThousandBaht) 12,115,365 10,103,546 6,448,077 4,978,103 5,667,288 5,125,443 4,466,613 9,618,728 1,783,929 (100,357) (252,966) (120,509) 643,355 683,991 683,991 786,190 352,237 (24,056) (27,564) (20,842) 643,355 (1,153) (1,105) (3,838) In 2012, the Company and six subsidiary companies have recorded appraisal result which engaged an independent appraiser to appraise all of its land using the market approach. The fair values of the revalued land in consolidated ųnancial statements amount of Baht 2,631 million which increased from the book values of Baht 513 million and decreased from the book values of Baht 2 million (Separate ųnancial statements: the fair values of the revalued land amount of Baht 1,141 million which increased from the book values of Baht 352 million). The Company and its subsidiaries recorded the increase amount as "Gain on revaluation of land" in the statements of comprehensive income and recorded the decrease amount as "Loss on revaluation of land" in the statements of income.

The revaluation surplus can neither be offset against deųcit nor used for dividend payment.

If the Company and its subsidiaries recorded the land at cost, their net book value as at 31 December 2012 and 2011 would have been as follows: (Unit: Thousand Baht) Consolidated Separate ųnancial statements ųnancial statements Net book value (at cost): As of 31 December 2012 6,806,326 1,179,380 As of 31 December 2011 5,715,550 458,130

As at 31 December 2012, the Company and its subsidiaries have medical tools, equipment and vehicles under ųnance lease agreements with net book values amounting to Baht 244.0 million and Baht 21.1 million in the separate ųnancial statements (2011: Baht 420.3 million and Baht 11.2 million in the separate ųnancial statements). 129 As at 31 December 2012, the Company and its subsidiaries have certain building improvement, medical tools, equipment and vehicles which have been fully depreciated but are still in use. The original cost of those assets amounted to approximately Baht 11,631.4 million and Baht 2,962.4 million in the separate ųnancial statement (2011: Baht 9,752.8 million and Baht 2,130.1 million in the separate ųnancial statements).

17. Land and buildings not used in operations Land and buildings not used in operations as at 31 December 2012 and 2011 consisted of: (Unit: Thousand Baht)

Consolidated Separate A n n u a l R e p o r t 2 0 1 2 N o t e s c n l i d a f m ųnancial statements ųnancial statements 2012 20112012 2011 Land and buildings at historical cost 368,174 368,174 367,847 367,847 Revaluation surplus 265,668 143,748 265,668 143,748 Allowance for impairment (719) (719) (719) (719) Total 633,123 511,203 632,796 510,876

In 2012, the Company has recorded appraisal result which engaged an independent appraiser to appraise all of its land using the market approach. The fair values of the revalued land amount of Baht 602 million which increased from the book values of Baht 122 million and was recorded as "Gain on revaluation of land" in the statements of comprehensive income. 130 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 18. Intangibleassets amounted toapproximatelyBaht29million(2011:million). As at31December2012 As at31December2011 Net bookvalue As at31December2012 Translation adjustment Disposals /written-off Amortisation fortheyear As at31December2011 Translation adjustment Disposals /written-off Transfer out Amortisation fortheyear Increase fromacquisition As at31December2010 Accumulated amortisation As at31December2012 Translation adjustment Disposals/written-off Transfer in Purchases As at31December2011 Translation adjustment Disposals/written-off Transfer in Purchases Increase fromacquisition As at31December2010 Cost Intangible assets,asat31December2012and2011,whicharecomputersoftwarefollows: The cumulativecapitalisedinterestonloansrecordedasaportionofcostlandnotusedinoperations ų nancial statements Consolidated 1,193,388 198,979 996,567 140,325 349,676 471,726 568,720 482,139 624,668 114,249 514,428 161,407 270,306 35,122 82,904 (4,223) (3,980) 2,135 (384) (141) 102 (83) (70) (29) 35 ų nancial statements Separate 184,271 283,485 125,535 157,950 148,344 72,988 99,214 14,252 84,962 11,715 73,247 9,473 (Unit: ThousandBaht) 133 ------19. Leasehold rights (Unit: Thousand Baht) Consolidated Separate ųnancial statements ųnancial statements 2012 20112012 2011 Cost 733,767 716,587 133,010 133,010 Less: Accumulated amortisation (181,052) (159,450) (33,693) (26,949) Book value - net 552,715 557,137 99,317 106,061 Amortisation for the year 22,137 19,041 6,744 5,903

A reconciliation of the net book value of leasehold rights for the years 2012 and 2011 is presented below. (Unit: Thousand Baht) Consolidated Separate ųnancial statements ųnancial statements 2012 20112012 2011 Net book value at beginning of year 557,137 509,064 106,061 59,003 Increase from acquisition - 141 - - Purchases 27,281 52,961 - 52,961 Less: amortisation (22,137) (19,041) (6,744) (5,903) Translation adjustment (9,566) 14,012 - - Net book value at end of year 552,715 557,137 99,317 106,061 131

20. Bank overdrafts and short-term loans from financial institutions As at 31 December 2012, the Company and its subsidiaries have bank overdraft facilities with banks of Baht 1,205 million and USD 1 million (2011: Baht 450 million and USD 1 million) and in separate ųnancial statements of Baht 850 million (2011: Baht 150 million). The facilities carry interest rate at MOR for Baht currency facilities and LIBOR plus ųxed rate for US currency facilities.

21. Trade and other payables (Unit: Thousand Baht) A n n u a l R e p o r t 2 0 1 2 N o t e s c n l i d a f m Consolidated Separate ųnancial statements ųnancial statements 2012 20112012 2011 Trade payables - related parties 75,383 90,181 126,209 128,811 Trade payables - unrelated parties 2,149,653 2,266,225 315,400 454,895 Other payables - related parties 10,670 18,895 89,245 46,871 Other payables - unrelated parties 987,864 731,504 358,602 257,719 Accounts payable - construction and retention 390,536 284,386 71,748 54,456 Total trade and other payables 3,614,106 3,391,191 961,204 942,752 132 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s The Company 22. Long-termloansfromfinancialinstitutions Long-term loans-netofcurrentportion Less: Currentportionduewithinoneyear Long-term loans c) In November2011,theCompanyenteredinto a7yearsand6monthsloanagreementwith b) InNovember2011,theCompanyenteredintoaloanagreementwith a) In2008,theCompanyenteredintoa10-yearloanagreementwithbankgrantingcreditfacilitiesofBaht f) InJuly2012,theCompany enteredintoa5-yearloanagreementwith e) InJune2012,theCompanyenteredintoa7yearsand 6monthsloanagreementwitha In January2012,theCompanyenteredintoa8yearsand 6monthsloanagreementwitha d) not yetwithdrawnsuchloan. 1 yearfromtheagreementdateandextendedagreement.Asat31December2012,Companyhad every six-monthaccordingtoaconditionasstipulatedintheagreement.Thedrawdownperiodwaswithin stipulated intheagreement.Theinterestisrepayableonamonthlybasisandprincipal facilities ofBaht1,000millioncarryinginterestatsix-monthFixedDepositRateplus as at31December2012wasBaht1,776.3million(2011:2,120.1million). for theaboveloanwitha Company anditssubsidiariesmustcomply.Thealsoenteredintoaninterestrateswapcontract that theCompanyanditssubsidiariesmaynotmortgageanyassetsalsocertaincovenantswhich the agreementwithinterestandprincipalpayableonamonthlybasis.Thisloanincludescondition 3,438 million.TheloancarriesinterestattheFixedDepositRateplus the endofloanperiod.Asat 31December2012,thisloanhasoutstandingbalance ofBaht2,500million. stipulated intheagreement. Theinterestisrepayableonasemi-annuallybasisand principalisrepayableat Baht 2,500million.Theloan hasaperiodof5yearsandcarriesinterestatthe 31 December2012,thisloanhasoutstandingbalanceof Baht1,671.4million. principal isrepayableonaquarterlybasisaccordingto aconditionasstipulatedintheagreement.Asat plus granting creditfacilitiesofBaht1,766millioncarrying interest attherateofsix-monthFixedDepositRate outstanding balanceofBaht558.5million. basis accordingtoaconditionasstipulatedintheagreement. Asat31December2012,thisloanhas ų granting creditfacilitiesofBaht586millioncarryinginterestattheratesix-monthFixedDepositRateplus As at31December2012,thisloanhasoutstandingbalanceofBaht2,569.0million(2011:1,021.6million). and theprincipalisrepayableonaquarterlybasisaccordingtoconditionasstipulatedinagreement. Rate plus institution grantingcreditfacilitiesofBaht3,000millioncarryinginterestattheratesix-monthFixedDeposit xed ratesperannumasstipulatedintheagreement.The interestandprincipalarerepayableonamonthly ų xed ratesperannumasstipulatedintheagreement.The interestisrepayableonamonthlybasisand ų xed ratesperannumasstipulatedintheagreement.Theinterestisrepayableonamonthlybasis ų nancial institutionasdiscussedinNote36.2theoutstandingbalanceofthisloan 8,558,261 9,447,906 (889,645) 2012 ų nancial statements Consolidated 6,951,172 7,764,387 (813,215) 2011 As at31December ų xed rateperannumasstipulatedin ų ų nancial institutiongrantingcredit nancial institutionamounting to ų ų 8,254,982 9,075,180 xed rateperannumas xed ratesperannumas (820,198) ų 2012 nancial statements ų ų Separate nancial institution nancial institution (Unit: ThousandBaht) 2,705,410 3,141,710 (436,300) 2011 ų nancial The subsidiaries a) In 2007 and 2008, Angkor Pisith Co., Ltd., a subsidiary company, entered into a 7 years and 10 months loan agreement with a foreign ųnancial institution granting credit facilities of USD 4 million. The loan bears interest at the rate of LIBOR plus a ųxed rate per annum. The interest is repayable on a monthly basis and the principal is repayable on a quarterly basis according to a condition as stipulated in the agreement. This loan is guaranteed by the Company. As at 31 December 2012, this loan has outstanding balance of USD 3.1 million or equivalent to Baht 94.4 million. (2011: USD 3.6 million or equivalent to Baht 113.8 million). b) In 2008, Bangkok Ratchasima Hospital Co., Ltd., a subsidiary company, entered into a 7 - year loan agreement with a ųnancial institution. The credit facilities were Baht 20 million. The loan bears interest at ųxed rate per annum. The interest and principal are repayable on a monthly basis according to a condition as stipulated in the agreement. As at 31 December 2012, this loan has outstanding balance of Baht 8.9 million (2011: Baht 12.2 million). c) In 2009, Sriracha Nakorn General Hospital Public Company Limited, a subsidiary company of a subsidiary company, entered into a 9 - year loan agreement with another ųnancial institution to obtain loan of Baht 410 million. This loan consequently amended to bears interest at a six-month Fixed Deposit Rate plus ųxed rate per annum, with the speciųed repayments of principal and interest as stipulated in the agreement. As at 31 December 2012, this loan has outstanding balance of Baht 269.4 million (2011: Baht 315.8 million).

The Company’s and its subsidiaries' loan agreements contain certain covenants which the Company and its subsidiaries must comply such as ųnancial ratios.

23. Liabilities under finance lease agreements As at 31 December 2012 and 2011, liabilities under ųnance lease agreements are as follows: 133 (Unit: Thousand Baht) Consolidated Separate ųnancial statements ųnancial statements 2012 20112012 2011 Liabilities under ųnance lease agreements 191,325 364,871 18,934 10,816 Less: Deferred interest expenses (12,538) (29,843) (1,348) (837) Total 178,787 335,028 17,586 9,979 Less: Current portion of liabilities under ųnance lease agreements (92,713) (149,723) (6,150) (3,051)

Liabilities under ųnance lease agreements - net of current portion 86,074 185,305 11,436 6,928 A n n u a l R e p o r t 2 0 1 2 N o t e s c n l i d a f m

The Company and its subsidiaries have future minimum lease payments which required under the ųnance lease agreements as follows: (Unit: Thousand Baht) As at 31 December 2012 Consolidated ųnancial statements Less than 1 year 1 - 5 year Total Future minimum ųnance lease payments 101,651 89,674 191,325 Deferred interest expenses (8,938) (3,600) (12,538) Present value of future minimum ųnance lease payments 92,713 86,074 178,787 134 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 24. Provisionfor long-termemployeebenefits months andattheendofagreements. tools, equipment,andvehiclesforuseintheiroperations.Installmentsaredueonamonthlybasisover32-60 Present valueoffutureminimum Deferred interestexpenses Future minimum Present valueoffutureminimum Deferred interestexpenses Future minimum Present valueoffutureminimum Deferred interestexpenses Future minimum De Actuarial loss Bene Interest cost Current servicecost Increase fromacquisition De Provision forlong-termemployeebene The Companyanditssubsidiarieshave ų ų ned bene ned bene ų ts paidduringtheyear ų ų t obligationatend ofyear t obligationatbeginningofyear ų ų ų nance leasepayments nance leasepayments nance leasepayments ų ų ų nance leasepayments nance leasepayments nance leasepayments ų ų nance leaseagreementswithvariousleasingcompaniestorentmedical ts, whichiscompensationsonemployees’retirement,was asfollows: Less than1year Less than1year Less than1year 1,108,656 862,972 131,630 2012 (18,758) ų 39,174 93,638 149,723 169,207 nancial statements (19,484) 3,051 3,525 6,150 6,844 - (474) (694) Consolidated Consolidated Separate Separate As at31December2012 As at31December2012 As at31December2012 862,972 304,133 471,633 (23,122) 012011 2011 30,742 76,439 3,147 ų ų nancial statements nancial statements 1 -5year 1 -5year 1 -5year ų 195,664 185,305 11,436 12,090 (10,359) nancial statements 6,928 7,291 (363) (654) 148,516 212,524 16,241 46,747 ų 2012 (5,224) 6,244 nancial statements - Separate (Unit: ThousandBaht) (Unit: ThousandBaht) (Unit: ThousandBaht) (Unit: ThousandBaht) 335,028 364,871 (29,843) 10,816 17,586 18,934 (1,348) Total Total Total 9,979 132,629 148,516 (837) 16,568 (6,355) 5,674 - - 25. Sharecapital as of31December 2011wasBaht1,545,458,833 (1,545,458,883ordinary sharesofBaht1each). As aresultofshareissuance andconvertedtheremainingconvertiblebonds,Company's paidupsharecapital Baht 37.75pershare,totaling Baht156milliontomajorshareholdersofHealthNetwork PublicCompanyLimited. private placementsold4.1 million newlyissuedordinaryshareswithaparvalue ofBaht1each,attheprice for EntireBusinessTransfer andTender offerasstatedinNote13.3and13.4respectively.In addition,theCompany has alreadyregisteredthechangeinshare the capital ofBaht1,553,391,408,consisting1,553,391,408 ordinary shareswithparvalueofBaht1each.TheCompany Baht 307,197,070,consistingof307,197,070ordinaryshares withparvalueofBaht1eachtobethenewregistered ordinary shareswithparvalueofBaht1eachandapproved theincreaseinCompany’sregisteredcapitalof with parvalueofBaht1eachtobethenewregistered capitalofBaht1,246,194,338,consisting1,246,194,338 the reductionofCompany’sregisteredcapitalBaht 1,312,264,222,consistingof1,312,264,222ordinaryshares Administrative expenses Cost ofhospitaloperations,salesandservices Year 2010 Year 2011 Year 2012 Future salaryincreaserate(dependingonageofemployee) Discount rate Line itemsunderwhichsuchexpensesareincludedinpro Total expenserecognisedinpro Interest cost Current servicecost Long-term employeebene Consequently, inthesecond quarterof2011,theCompanyissued295.2millionnewly issuedordinaryshares On 24February2011,theExtraordinaryGeneralMeeting oftheCompany’sshareholdersNo.1/2011approved Amounts ofde Principal actuarialassumptionsatthevaluationdatewereasfollows: ų nancial statements Consolidated ų 1,108,656 ned bene 471,633 862,972 De ų ned bene ų ų t obligationforthecurrentandprevioustwoperiodsareasfollows: t orloss ų t expensesincludedinthepro ų t obligation ų nancial statements Separate 132,629 148,516 212,524 ų t orloss ų rst quarterof2011. Experience adjustmentsarisingontheplanliabilities ų t orlosswereasfollows: ų nancial statements 3.0 -7.5 3.7 -4.1 132,812 Consolidated ų ų 39,174 93,638 54,525 78,287 2012 2012 nancial statements nancial statements 68,661 Consolidated Consolidated %pranm (%perannum) (% perannum) - - 3.0 -7.5 3.7 -5.0 107,181 47,192 59,989 30,742 76,439 012011 2011 012011 2011 ų ų ų nancial statements 14,125 22,485 16,241 6,244 2012 2012 nancial statements nancial statements 8,360 6.0 4.1 Separate Separate Separate 31,203 (Unit: ThousandBaht) (Unit: ThousandBaht) - - 14,284 22,242 16,568 5,674 7,958 6.0 4.7 135 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s On 20 April 2012, the Annual General Meeting of the Company’s shareholders approved the reduction of the Company’s registered capital by Baht 7,932,525, from Baht 1,553,391,408 to Baht 1,545,458,883, and approved the increase of the Company’s registered capital by Baht 154,545,888 under a general mandate, through the issue of 154,545,888 new ordinary shares with a par value of Baht 1 per share. The new registered capital will be Baht 1,700,004,771, consisting of 1,700,004,771 ordinary shares with par value of Baht 1 per share. The Company has already registered the capital increase in May 2012.

26. Dividend

Dividend Approved byTotal dividend Dividend per share (Million Baht) (Baht) Final dividend for 2011 Annual General Meeting of the shareholders on 20 April 20121,700 1.10 Total dividend during 2012 1,700 1.10

27. Statutory reserve Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is required to set aside to a statutory reserve at least 5 percent of its net proųt after deducting accumulated deųcit brought forward (if any), until the reserve reaches 10 percent of the registered capital. The statutory reserve is not available for dividend distribution.

28. Expenses by nature 136 Signiųcant expenses by nature for the years ended 31 December 2012 and 2011 are as follows: (Unit: Million Baht) Consolidated Separate ųnancial statements ųnancial statements 2012 20112012 2011 Employee expenses 10,192.1 8,587.7 2,199.4 1,786.0 Doctor fee 8,298.8 7,053.2 1,444.8 1,325.4 Cost of drugs and supplies 6,146.7 5,164.7 1,123.6 953.3 Depreciation and amortisation expenses 2,950.6 2,707.5 664.4 701.6 A n n u a l R e p o r t 2 0 1 2Advertising N o t e s c n l i d a f m and public relation expenses 866.4 473.1 394.7 198.0 Rental expenses 444.4 376.8 69.2 40.1

29. Income tax Corporate income tax for the year ended 31 December 2012 was calculated at the rate of 23 percent (2011: 30 percent) on taxable net proųt.

30. Earnings per share Basic earnings per share is determined by dividing proųt for the year attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year. to payrentalonayearlybasis.Thefeeforthe The agreementwillcoveraperiodof30yearsafterthesigningdateandCompanyisobliged the Companyenteredintoanotherlandandhospitalbuildingrentalagreementwiththatgovernmentauthority. has totransfertheownershipoversuchbuildingthatauthority.Afterauthorityacceptstransfer,in2006 authority. Theconditionoftheagreementstatesthatuponcompletionbuildingconstruction,Company be paidatBaht30,000permonthandfrom1January2027onward100,000month. December 2035andtherentalispaidonamonthlybasis.The onward. the rateofBaht131,000permonth.Therentalwillbe175,000monthstartingfrom1September2006 2005 to31August2012andtherentalispaidonamonthlybasis.The latest rentalofevery3years. of Baht50,000permonthandthisfeeistobeincreasedevery3years.Theratewillby10%the years from28September2004to272034.The be increasedbytherateasagreedinagreement.Therentalforlast3yearswillBaht560,000permonth. 26 February2004to252024.Therentalfeeforthe The Company 31. Long-termleaseagreements fee stipulated inagreementwhicheveris higher. stipulated inthe agreement,ofmonthly gross operatingrevenuebefore deductedanyexpenses ortheminimum clinic inabuildingforperiod of5yearsfrom28May2010.Thesubsidiarycompany hastopayfeeattherate same companyforproviding ofservicesintheparkingbuildingfor30yearstotaling Baht103.4million. will bepaidonamonthlybasis. Inaddition,thesubsidiarycompanyhasenteredinto aserviceagreementwiththe company iscommittedtopayBaht38.8millionasprepaid rentalaspertheschedule.Theremainingfee for 30years,effectivefrom8December2004.Thetotal rentalfeewillthusbeBaht155.1million.Thesubsidiary Samitivej PublicCompanyLimited deducted anyexpensesortheminimumfeestipulated inagreementwhicheverishigher. Company hastopayfeeattheratestipulatedin agreement,ofmonthlygrossoperatingrevenuebefore operate medicalclinicinabuildingforperiodof2years from1September2011to272013.The rate willbeincreasedby10%ofthelatestrentaleverythreeyears. is 18July2011andrentaltobepaidatBaht100,000permonththisfeeincreasedevery3years. The March 2041andtherentalispaidonamonthlybasiswithnofor increased every5years.TherentalforthelastyearswillthusbeBaht990,943peryear. The Companyhasenteredintoanagreementtoconstructahospitalbuildingonlandownedbygovernment The Companyhasenteredintoalandrentalagreementforperiodof30yearsfrom1January2006to31 The Companyhasenteredintoalandrentalagreementforcarparkingperiodof7yearsfrom1September The CompanyhasenteredintoalandrentalagreementforconstructionofanOPDbuildingperiod30 The Companyhasenteredintoalandrentalagreementforcarparkingbuildingperiodof20yearsfrom The subsidiarycompanyhas enteredintoamedicalservicesagreementwithcompany tooperatemedical The subsidiarycompanyhasenteredintoarentalagreement foraparkingbuildingdated10September2003, The Companyhasenteredintoarentalagreementandmedicalserviceswithcompanyto The Companyhasenteredintoalandrentalagreementforperiodof30yearsfrom18March2011to17 ų rst 5yearsisBaht492,676peryearandthisfeetobe ų rst paymentdateis10October2005attherentalfee ų rst 17monthsisBaht200,000permonthandwill ų rst paymentdateis5January2006andrentalto ų rst paymentdateis1September2005at ų rst 3months.The ų rst paymentdate 137 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 138 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 32. Commitmentsandcontingentliabilities expiring intheyear2013andrentalfeeispaidonamonthlybasisasstipulatedagreement. Phyathai 1HospitalCo.,Ltd. 2037, andtherentalfeeispaidonamonthlybasisatamountasstipulatedinagreement. Paolo MedicCo.,Ltd. for theconstructionofahospitalperiod30years,commencing1September1993,withoptionstorenew. BNH MedicalCenterCo.,Ltd. - thelandandbuildingrentalcontracts Contractual commitments Total - thesaleandpurchasecontract forland the buildingconstructionanddecorationcontracts - - themedicalequipmentprovision - theof - thelandandbuildingrentalcontracts Contractual commitments Total - thesaleandpurchasecontractforland the buildingconstructionanddecorationcontracts - - themedicalequipmentprovision - theof (including long-termagreementsinNote31) and maintenancecontracts (including long-termagreementsinNote31) and maintenancecontracts The subsidiarycompanyenteredintoalandrentalagreementwithstateenterpriseforperiodof3years The subsidiarycompanyenteredintoalandandpremisesrentalagreementwhichwillbeexpiredinJanuary The subsidiarycompanyenteredintoanagreementwithassociationwhichisashareholder,toleaseland As at31December2012and2011,commitmentscontingentliabilitiesareasfollows: ų ų ce equipmentrentalandotherservices ce equipmentrentalandotherservices Consolidated Consolidated Within Within 1 year 1 year 1,279 1,352 562 367 249 101 748 236 270 - 98 - ų ų nancial statements nancial statements years years 1 -5 1 -5 116 183 456 458 222 97 60 80 56 97 - 3 As at31December2012 As at31December2012 5 years 5 years Over Over 450 426 515 471 24 44 ------Separate Separate Within Within 1 year 1 year 208 340 267 50 90 50 18 23 29 21 - - ų ų nancial statements nancial statements years years 1 -5 1 -5 46 55 39 42 ------9 3 (Unit: MillionBaht) (Unit: MillionBaht) 5 years 5 years Over Over 132 132 137 137 ------34. Debentures 33. Segmentinformation normal courseofbusiness,suchasfacilityusageandcontractualperformance. the bankonbehalfofCompanyanditssubsidiaryinrespectcertainperformancebondsasrequired Baht 198million(2011:189million)andtheCompany'swas2625issuedby Contingent liabilities annum withinterest payableeverysix-month. per unit,totalingBaht2,500 million.Thesedebenturesare4-yearat thecouponrateof3.99%per a debentureholders’representative debentureforthetotalnumberof2,500,000 units, atthepriceofBaht1,000 debentures foramountof30,000units,totalingBaht30 million. per annumwithinterestpayableeverysix-month.Upto 31December2012,theCompanyhadrepurchasedsuch 4.80% perannumandthe7-yeardebenturesforamount ofBaht1,000millionatthecouponrate5.35% are dividedintotwotranches:the5-yeardebenturesfor theamountofBaht2,000millionatcouponrate total numberof3,000,000units,atthepriceBaht1,000 perunit,totalingBaht3,000million.Thesedebentures had redeemedthe3-yeardebenturesforamountof Baht3,000millioninthe of Baht2,000millionatthecouponrate4.84%perannumwithinterestpayableeverysix-month.TheCompany amount ofBaht3,000millionatthecouponrate4.11%perannumand5-yeardebenturesfor unit, totalingBaht5,000million.Thesedebenturesaredividedintotwotranches:the3-yearfor the without adebentureholders’representativeforthetotalnumberof5,000,000units,atpriceBaht1,000 per 31 December2012and2011aresummarisedbelow. Thailand. Asaresult,mostoftherevenues,operatingpro pertain totheaforementionedindustrysegmentandgeographicarea. Debentures -netofcurrentportion Less: Currentportionofdebentures Balance endofyear Amortisation ofdebentureexpenses Debentures expenses Redemption ofdebentureduringyear Debentures issuedduringtheyear Balance beginningofyear As at31December2012,theCompanyanditssubsidiaryhadoutstandingbankguaranteesofapproximately On 3March2011,theCompany hadissuedunsecured,nameregisteredandunsubordinated debentureswithout On 4June2009,theCompanyhadissuedunsecured,name registeredandunsubordinateddebenturesforthe On 6March2008,theCompanyhadissuedunsecured,namedregisteredandunsubordinateddebentures Movements ofdebenturesnetfromdebentureexpensesandamortizationduringtheyearended The Companyanditssubsidiariesoperatemainlyinthehospitalbusinessrelatedbusinesses ų ts andassetsasre Consolidated /Separate (1,999,885) 7,063,969 9,063,854 8,461,263 600,000 2012 3,361 - (770) Ŵ ected inthese ų rst quarterof2011. ų nancial statements ų nancial statements (3,000,000) 8,461,263 8,461,263 3,500,000 7,963,172 2011 (Unit: ThousandBaht) (5,182) 3,273 - 139 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 140 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 35. Promotionalprivileges exemption period. one yearorfromseveralyears. utilise thelossasadeductionagainstnetpro Signi according tothepromotionalcerti Wattanavej Co.,Ltd. one yearorfromseveralyears. utilise thelossasadeductionagainstnetpro privileges areasfollows: to thepromotionalcerti payment ofdividendandassetsdispositions,etc. with interestpayableeverysix-month. per unit,totalingBaht600million.Thisdebentureis10-yeardebenturesatthecouponrateof4.5%annum a debentureholders’representativedebentureforthetotalnumberof600,000units,atpriceBaht1,000 3.78% perannumwithinterestpayableeverysix-month. Baht 1,000perunit,totalingmillion.Thesedebenturesare3-yearatthecouponrateof without adebentureholders’representativedebentureforthetotalnumberof1,000,000units,atprice - Exemptionfromincometax ondividedpaidfromthepro In caseoflossesbeingincurredduringthecorporateincome taxexemptionperiod,theCompanyisallowedto - Exemption fromcorporateincometaxderived thepromotedoperation,withlimitedrateof100 - Exemptionofimportdutyonmachineryasapproved by theboard. Wattanavej Co.,Ltd.hasbeengrantedpromotionalprivilegesunderTheInvestmentPromotionActB.E.2520, - Exemptionfromincometaxondividendpaidthepro In caseoflossesbeingincurredduringthecorporateincometaxexemptionperiod,Companyisallowedto - Exemption fromcorporateincometaxderivedthe promoted operation,withthelimitedrateof100 - Exemptionofimportdutyonmachineryasapprovedbytheboard. The CompanyhasbeengrantedpromotionalprivilegesunderInvestmentPromotionActB.E.2520,according Debenture agreementcontainscertaincovenantswhichtheCompanymustcomplywithsuchas In August2012,theCompanyhadissuedunsecured,nameregisteredandunsubordinateddebentureswithout On 29March2011,theCompanyhadissuedunsecured,nameregisteredandunsubordinateddebentures ų date thatrevenuesare percent oftheinvestmentexcludinglandandworking capitalforaperiodof8yearscommencingfromthe exemption period. date thatrevenuesare percent oftheinvestmentexcludinglandandworkingcapitalforaperiod8yearscommencingfrom cant privilegesareasfollows: ų cate No.2302(2)/2553,dated26November2010,forhospitalbusinessType 7.7.Signi ų ų rst derivedfromthepromotedoperation. rst derivedfromthepromotedoperation.

ų cate No.1686(2)/2547,dated25August2004,forhospitalbusinessType 7.11. ų ų ts foraperiodof5yearsafterexemptionperiod,whether fromany ts foraperiodof5yearsafterexemptionperiod,whetherfromany ų ų t ofthepromotedoperation throughoutthetax t ofthepromotedoperationsthroughouttax ų nancial ratios, ų cant Type 7.11.Signi B.E. 2520,accordingtothepromotionalcerti Bangkok SamuiHospitalCo.,Ltd. the promotedandnon-promotedoperationasfollows: promotional privileges. one yearorfromseveralyears. utilise thelossasadeductionagainstnetpro and/or activeingredientsinmedicines.Type 6.5.Signi 2520, accordingtothepromotionalcerti A.N.B. LaboratoriesCo.,Ltd. one yearorfromseveralyears. utilise thelossasadeductionagainstnetpro Total revenues Other income Revenue fromhospitaloperations Bangkok SamuiHospitalCo.,Ltd.hasbeengrantedpromotionalprivilegesunderTheInvestmentPromotionAct Revenues oftheCompanyandsubsidiarycompaniesfor theyears2012and2011canbeseparatedbetween The Companyandsubsidiarycompaniesmustcomply withtheconditionsstipulatedininvestment - Exemptionfromincometaxondividendpaidthepro In caseoflossesbeingincurredduringthecorporateincometaxexemptionperiod,Companyisallowedto - Exemption fromcorporateincometaxderivedthe promoted operation,withthelimitedrateof100 - Exemptionofimportdutyonmachineryasapprovedbytheboard. A.N.B. LaboratoriesCo.,Ltd.hasbeengrantedpromotionalprivilegesunderTheInvestmentPromotionActB.E. - Exemptionfromincometaxondividendpaidthepro In caseoflossesbeingincurredduringthecorporateincometaxexemptionperiod,Companyisallowedto - Exemption fromcorporateincometaxderivedthepromotedoperation,withlimitedrateof100 - Exemptionofimportdutyonmachineryasapprovedbytheboard. exemption period. date thatrevenuesare percent oftheinvestmentexcludinglandandworkingcapitalforaperiod5yearscommencingfrom exemption period. date thatrevenuesare percent oftheinvestmentexcludinglandandworkingcapitalforaperiod8yearscommencingfrom ų cant privilegesareasfollows: ų ų rst derivedfromthepromotedoperation. rst derivedfromthepromotedoperation. 1,165,766 1,146,601 Promoted operation 2012 19,165 ų cate No.1913(2)/2011,dated4August2011,forproductionofmedicines ų cate No.1719(2)/2547,dated1September2004,forhospitalbusiness ų ų ts foraperiodof5yearsafterexemptionperiod,whetherfromany ts foraperiodof5yearsafterexemptionperiod,whetherfromany 951,872 951,872 2011 ų - cant privilegesareasfollows: Consolidated Non-promoted operation 46,696,393 43,160,727 3,535,666 ų ų t ofthepromotedoperationthroughouttax t ofthepromotedoperationthroughouttax 2012 ų nancial statements 36,419,466 34,272,594 2,146,872 2011 47,862,159 44,307,328 3,554,831 2012 (Unit: ThousandBaht) Total 37,371,338 35,224,466 2,146,872 2011 141 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 142 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s if thecontract wasterminatedatthestatement of 36. Financialinstruments Ŵ overdrafts, short-termloans,long-termanddebentures.However,mostof 36.2 Interestraterisk instruments forspeculativeortradingpurposes. consider appropriate,tomanagesuchrisks.NeithertheCompanynorsubsidiariesholdorissuederivative subsidiaries donotusederivativeinstruments,whiletheCompanyusesinstrumentsasandwhenthey currency exchangerates,andfromnonperformanceofcontractualobligationbycounterpartiesinthefuture. The 36.1 Financialriskmanagement with these mentioned inNote4.17to No. 107 ų institution whichconvertsa Interest rateswapcontract rate swapcontracttomanagethisriskasappropriate. xed interestrateperannumonthelong-termloanbalance. oating interestratesor Fair valueofinterestrateswapcontract (liabilities) Total revenues Other income Revenue fromhospitaloperations Fair valueofinterestrateswap contractshasbeencalculatedusingtheratequoted bya The Companyanditssubsidiariesareexposedtointerestrateriskrelatesprimarilycashatbanks,bank The Companyanditssubsidiariesareexposedtoriskarisingfromchangesinmarketinterestratesforeign The Companyanditssubsidiaries’ The netfairvalueoftheinterestrateswapcontractat the statementof On 15September2008,theCompanyenteredintoa Interest rateswapareusedtomanageexposure The long-termloansanddebentureswerepresentedinnotes2234respectively. “Financial Instruments:DisclosureandPresentation” ų nancial instrumentsandhowtheyaremanagedisdescribedbelow. ų xed interestrateswhichareclosetothemarketrateandCompanyentersinto ų nancial statements.TheCompanyanditssubsidiarieshavethe Ŵ oating interestratebasedontheFixedDepositRateplus 341,128 341,128 Promoted operation 2012 ų - nancial instruments,whicharede 190,257 190,257 ų 2011 nancial position date. - Ŵ uctuations ininterestrate. Separate ų , principallycomprisethe ve-year interestrateswapcontractwitha 1.)(11.2) (11.2) 2012 ų 12,515,273 Non-promoted operation nancial statements 2,854,975 9,660,298 Consolidated 2012 ų nancial statements ų (20.5) ų ned underThaiAccountingStandard 012011 2011 10,569,649 nancial positiondatewasasfollows: 2,501,067 8,068,582 2011 ų nancial assetsandliabilitiesbear ų nancial assetsandliabilities ų xed rateperannumtoa ų 12,856,401 10,001,426 ų 2012 nancial risksassociated 2,854,975 nancial statements ų 2012 nancial institutionas Separate (Unit: ThousandBaht) Total (Unit: MillionBaht) 10,759,906 2,501,067 8,258,839 (20.5) ų ų 2011 nancial nancial - Investments - Restricted - Long-termdepositat - Trade andotheraccounts receivable - Short-terminvestments - Cashandcashequivalent Financial Assets - Debentures - Liabilitiesunder - Long-termloans - Trade andotherpayables - Bankoverdraftsandshort-termloans Financial liabilities - Investments - Restricted - Trade andotheraccountsreceivable - Short-terminvestments - Cashandcashequivalent Financial Assets from Signi ų ų nancial institution cant ų ų nancial institutiondeposit nancial institutiondeposit ų nancial assetsandliabilitiesclassi ų nance leaseagreements ų nancial institution Within Within 1 year 1 year 1,200 3,296 2,000 940 418 510 683 211 451 12 - - - - - 93 21 3 - ų Fixed interestrates Fixed interestrates ed bytypeofinterestrateareasfollows: 9,056 6,464 2,506 years years 1 -5 1 -5 50 50 ------86 - - - - - Consolidated Consolidated As at31December2012 As at31December2011 5 years 5 years Over Over 600 600 ------ų ų nancial statements nancial statements Floating Floating interest interest 6,964 6,939 3,035 3,120 3,140 3,153 rate rate ------25 13 2 Non-interest Non-interest bearing bearing 17,810 13,360 11,514 3,614 3,614 4,287 7,865 3,377 - - - - - 226 - - 57 19 46 (Unit: MillionBaht) (Unit: MillionBaht) 15,657 23,530 21,528 13,360 Total Total 7,865 3,377 3,876 9,064 9,448 3,614 1,225 4,287 3,590 464 179 268 25 50 23 143 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 144 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s - Debentures - Liabilitiesunder - Long-termloans - Trade andotherpayables - Bankoverdraftsandshort-termloans Financial liabilities - Debentures - Liabilitiesunder - Long-termloans - Short-termloansfromrelatedparties - Trade andotherpayables - Bankoverdraftsandshort-termloans Financial liabilities - Investments - Long-termloanstorelatedparties - Short-termloanstorelatedparties - Trade andotherreceivables - Cashandcashequivalent Financial Assets from from ų ų nancial institution nancial institutions ų ų nance leaseagreements nance leaseagreements Within Within 1 year 1 year 3,206 2,000 1,200 154 150 ------4 6 Fixed interestrates Fixed interestrates years years 8,655 8,461 8,975 6,464 2,500 1 -5 1 -5 185 ------11 9 Consolidated Separate As at31December2011 As at31December2012 5 years 5 years Over Over 600 600 ------ų nancial statements ų nancial statements Floating Floating interest interest 9,372 6,575 2,797 7,096 5,325 1,564 7,982 7,751 rate rate 207 231 ------Non-interest Non-interest bearing bearing 35,394 34,429 3,391 3,391 961 961 962 ------3 (Unit: MillionBaht) (Unit: MillionBaht) 20,182 23,114 42,490 34,429 Total Total 8,461 7,764 3,391 9,064 9,075 2,797 1,200 5,325 1,567 335 231 961 207 962 17 Forward exchangecontract mature withinoneyear. company seekstomanagethisriskbyenteringintoforwardexchangecontracts.Generally,thecontracts tools andequipmentsalesofgoodstransactionswhicharedenominatedinforeigncurrencies.Asubsidiary 36.3 Foreigncurrencyrisk contracts wereasfollows: - Debentures - Liabilitiesunder - Long-termloans - Short-termloansfromrelatedparties - Trade andotherpayables Financial liabilities - Investments - Long-termloanstorelatedparties - Short-termloanstorelatedparties - Trade andotherreceivables - Cashandcashequivalent Financial Assets The Companyanditssubsidiariesareexposedtoforeigncurrencyriskmainlyinrespectofpurchasemedical As at31December2012and2011,asubsidiarycompanyhastheoutstandingbalanceofforwardexchange 31 December2011 31 December2012 Balance asat ų nance leaseagreements

Foreign currency US Dollar US Dollar Euro Within 1 year 230 170 60 ------3 3 Fixed interestrates years 8,468 8,461 1 -5 ------Amount 482,588 255,442 bought 7 3,465 Separate As at31December2011 5 years Over ------ų nancial statements (Baht perforeigncurrencyunit) Floating interest 3,260 rate 4,770 3,142 1,628 1,606 1,517 Contractual exchangerate 137 - - - - - for amountbought 30.75 -31.63 30.89 -31.14 Non-interest 41.52 bearing 31,369 30,537 943 943 829 ------3 (Unit: MillionBaht) 14,184 34,859 30,537 Total 8,461 3,142 1,628 1,666 1,520 943 307 829 10 145 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 146 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 36.5 Fairvaluesof other receivablesasstatedinthestatementof customer base.Themaximumexposuretocreditriskislimitedthecarryingamountsofreceivables,loansand appropriate creditcontrolpoliciesandproceduresthereforedonotexpecttoincurmaterial loans, billofexchangeandotherreceivable.TheCompanyitssubsidiariesmanagetheriskbyadopting 36.4 Creditrisk retired byrotation.InAgendaItem5,7peoplewereproposed totheShareholders’Meetingasdirectorsreplace items withmajorityvotes,includingAgendaItem5-To considertheappointmentofdirectors toreplacethose and werelawfullyimplementedinallrespects.TheMeeting ofShareholdersconsideredandapprovedallagenda replace thoseretiredbyrotationtookplaceincompliance withthelawsandCompany’sArticlesofAssociation, Shareholders considerallagendaitems,includingthe item5toconsidertheappointmentofdirectors had opinionthatcallingthe2012AnnualGeneralMeeting ofShareholders,anditsprocedures,proposingthatthe caused damagestotheShareholders. Limited CompanyActB.E.2535,andSecuritiesExchangewereunfair,exploitative, and of the2012AnnualGeneralMeetingShareholderswereagainstArticlesAssociationCompany,Public those retiredbyrotation.ThematerialclaimsmadetheShareholdersintheirpetitionwerethatresolutions of ShareholdersandtoreconvenetheShareholders'Meetingconsiderappointmentdirectorsreplace - To considertheappointmentofdirectorstoreplacethoseretiredbyrotationat2012AnnualGeneralMeeting “Shareholders”) 38.1 Litigation2012 38. Litigation 37. Capitalmanagement the amountspresentedinstatementof ų ų willing partiesinanarm’slengthtransaction.Thefairvalueisdeterminedbyreferencetothemarketpriceof the 2012, theGroup'sdebt-to-equityratiowas0.8:1.0(2011:0.8:1.0)andCompany's0.9:1.00.6:1.0). appropriate capitalstructureinordertosupportitsbusinessandmaximiseshareholdersvalue.Asat31December nancial instrumentorbyusinganappropriatevaluationtechnique,dependingonthenatureofinstrument. xed interestrateswhichareclosetomarketrate,theirfairvalueisnotexpectedbemateriallydifferentfrom In addition,theCompanyanditssubsidiariesdonothavehighconcentrationofcreditrisksinceithasalarge The Companyanditssubsidiariesareexposedtocreditriskprimarilywithrespecttradeaccountsreceivable, Legal counseloroftheCompanygatheredinformation, includingtheproceduresforarrangingmeetings,and In thesecondquarterof2012,5peoplewhoclaimedthattheyareshareholdersCompany(the Since themajorityofCompany’sanditssubsidiaries’ A fairvalueistheamountforwhichanassetcanbeexchangedoraliabilitysettledbetweenknowledgeable, The primaryobjectiveoftheCompany’sanditssubsidiaries’capitalmanagementistoensurethatithas ų led apetitionwiththeCivilCourtrequestingcancellationofresolutionsAgendaItem5 ų nancial instruments ų nancial position. ų nancial position. ų nancial instrumentsbear Ŵ oating interestratesor ų nancial losses. registered capitalandtheCompanyholds100percent. Company Limited,tooperateahospitalbusinessinKhon Kaenprovince.ThiscompanyhasBaht600millionof Established newsubsidiarycompany 39. Eventsafterthereportingperiod 5 peoplenominatedbytheBoardofDirectors,whoreceived1 the 5directorswhoweretoretirebyrotation.TheShareholders’Metingresolvedapproveappointmentof in accordancewiththeSettlementAgreement. fee. AfterconsideringthattheSettlementAgreementisinaccordancewithlaws,Courtgranteditsjudgement of theShareholders'Meeting2011.ThePartiesallagreedwithsuchsettlementwithoutdemandingforCourt the resolutionsofMeeting,and shareholders toconsiderandcastthevoteonagendasassetoutbylawsbothpartiesshallhonor the settlementagreementwhereCompanywillholdOrdinaryShareholders'MeetinginApril2013for the importance oftherighteachshareholder.Duringcourtprocess, and theRegulationsofStockExchangeThailandthatCompanyalwaysfollowsconsidering the Ordinary Shareholders'MeetingcorrectlyinaccordancewiththeArticleofAssociationCompany,laws has Claimants requestedtheCourttorevokeResolutionofShareholders'Meeting2011whichCompany illegally andinviolationoftheArticleAssociationCompanyduetochangevotingmethod. The Company 38.2 Litigation2011 Therefore, thecaseisfullycompliedwithlaw. opinion thatthiscaseisnotunfairdismissalsincetheconsultantcontractalreadyexpiredandwasrenewed. and theCompanyhaslawfullycompliedwithcontract.Inaddition,Legalcounselorof liability inthe Company. Currently,thecaseisinlegalprocessbycentrallabourcourt.TheCompanyhasnotrecorded with agreedperiod.TheCompanydidnotrenewthecontractuponexpiration;therefore,Advisorsued amount ofBaht415Million,sincetheCompanyhiredaretiredhigh-levelexecutiveunderconsultantcontract will notresultinchangestotheresolutions. Ministry ofCommerce,on3May2012.Thecaseisinlegalprocess,butthemanagementexpectsthatthis meeting, andregisteredthechangeofdirectorsCompanywithDepartmentBusinessDevelopment, retired byrotation,withmajorityvotes.Inaddition,theCompanycompliedresolutionsobtainedat In February2013,theCompanyhasestablishedanewsubsidiary company,namelyBangkokHospitalKhonKaen In thesecondquarterof2011,claimantsconsisted5personswhoclaimedthattheyareshareholder In addition,theCompanyhasacontingentliabilityasresultofbeingsuedforunfairdismissalwithdisputed ų led anobjectionbystatingthattheCompanydidnotchangevotingmethodandheld ų led apetitiontothecourt-claimingthatCompanyheldordinaryshareholders'meetingof2011 ų nancial statementssincethemanagementbelievesthatthereisuncertaintyregardinglegalcase ų ve ClaimantsagreedtodroptheirPetitionandnotrevoketheResolutions st to5 th placevotestobedirectorsreplacethose ų ve ClaimantsandtheCompanyhave 147 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 148 A n n u a l R e p o r t 2 0 1 2 N o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 40. Approvaloffinancialstatements 11 February2013to18March2013. securities ofKrungdhonHospitalPublicCompanyLimitedatapriceBaht55.Thetenderofferperiodisfrom Hospital PublicCompanyLimited. result, theCompanyandasubsidiarycompanytotallyhold44.96percentoftotalissuedsharesinKrungdhon of thecompanyfromexistingshareholdersatapriceBaht55persharestotaling205.79million.As company hasacquired3,741,612sharesinsuchcompany,representing24.94percentofthetotalissued company, approvedtheacquisitionofsharesinKrungdhonHospitalPublicCompanyLimited.Thesubsidiary Acquisition ofsharesin 2013. In addition,on7February2013,RoyalBangkokHealthcareCo.,Ltd.submittedatenderofferproposaltopurchase On 25January2013,themeetingofBoardDirectorsRoyalBangkokHealthcareCo.,Ltd.,asubsidiary These ų nancial statementshavebeenauthorisedforissuebytheCompany’sBoardofDirectorson27February , hrungdhon HospitalPublicCompanyLimited Auditor Bond Representative Bond Registrar Securities Registrar Reference Information Registered Capital Website Company RegistrationNumber Location Type ofBusiness Fax 02-661-9192,02-264-0789-90 Telephone 02-661-9190,02-264-0777 Klongtoey, Bangkok10110 193/136-137 Ratchadaphisek Road, 4 Thailand SecuritiesDepositoryCo.,Ltd. common shareswithparvalueofBaht1each in paid-upcapital,dividedinto1,545.46million Baht 1,700.00millionwith1,545.46 www.bangkokhospital.com BorMorJor. 0107537000025 Fax 02-310-3252,02-310-3327 Telephone 1719,02-310-3000 Huay Kwang,Bangkok10320 2 SoiSoonwijai7,NewPetchaburiRoad,Bangkapi, Health CareBusiness 33 Ernst & Telephone 02-470-1952,02-470-3687Fax02-470-3684 Samsennai, Phayathai,Bangkok10400 400/22 KasikornBankBuilding,11 Securities ServiceDepartment , Telephone 02-230-5878,02-230-5756Fax02-230-6093 Bangrak, Bangkok10500 10 TMB BankPublicCompanyLimited Fax 0-2359-1259 Telephone 02-229-2800,02-654-5599 62 RatchadaphisekRoad,Klongtoey,Bangkok10110 th asikornBank PublicCompanyLimited rd th Floor,StockExchangeofThailandBuilding, Floor,LakeRajadaBuilding, Floor,393SilomRoad,Silom, : oung Of General ų ce Co.,Ltd. th Information Fl.,PaholyotinRoad 149 A n n u a l R e p o r t 2 0 1 2 G e n e r a l I n f o r m a t i o n 150 A n n u a l R e p o r t 2 0 1 2 Juristic persons in which the company holds 10% of shares or greater 26 holds 10%ofsharesorgreater Juristic persons 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Royal RattanakMedical ServicesCo.,Ltd. Angkor PisithCo.,Ltd. Bangkok HositalPrapradaengCo.,Ltd. Bangkok HospitalRatchasimaCo.,Ltd. (BNH) BNH MedicalCenterCo.,Ltd. Held throughSVH Samitivej SrirachaCo.,Ltd. Samitivej Plc.(SVH) Bangkok HospitalPattayaCo.,Ltd. Bangkok HospitalHadyaiCo.,Ltd. Bangkok HospitalPhuketCo.,Ltd. Wattanavej Co.,Ltd. Bangkok HospitalTrad Co.,Ltd. Bangkok HospitalRayongCo.,Ltd. Bangkok HospitalSamuiCo.,Ltd. Bangkok HospitalKhaoYai Co.,Ltd. Thai MedicalCenterPLC. Siam MedicalCo.,Ltd. Paolo SamutPrakranCo.,Ltd. Paolo MedicCO.,LTD. . Held troughPPCL Sriracha NakornGeneralHospitalPLC. Held troughPPCL The PhayaThai3HospitalCo.,Ltd. Held troughPPCL The PhayaThai2HospitalCo.,Ltd. Held troughPPCL Phaya Thai1HospitalCo.,Ltd. Prasit PatanaPlc.(PPCL) Bangkok HospitalUdonCo.,Ltd. Bangkok HospitalChaingmaiCo.,Ltd. Name eitrdLcto uies%held Business Location Registered 24/Nov/92 11/Dec/01 28/Dec/76 20/Dec/05 24/Sep/96 15/Sep/07 17/Feb/97 15/Mar/94 13/Aug/02 14/Aug/03 27/Aug/91 28/Oct/83 22/Jun/12 25/Jan/94 27/Jan/36 30/Jan/92 24/Jan/74 1/May/89 27/Jul/95 18/Jul/07 17/Jul/70 26/Jul/12 Date 7/Sep/93 8/Oct/86 1/Jun/07 9/Apr/01 inwhichthecompany Khan Toul Kok,PhnomPenh, Cambodia. No.11, Street592,Sangkat BoeungKak2, District, SiemReapProvince, Cambodia. Svay DangkomCommune, SiemReap National RoadNo.6,KruosVillage, Samutprakarn Province 288 SuksawatMuang Nakornratchasima Province 1308/9 MitraparpRoadNaiMuang,Muang 9/1 ConventRoadSilom,Bangrak Si Racha,ChonBuri 8 SoiLaemkateChoemChormphonRd. Bangkok 133 Sukhumvit49Klongtan,Wattana Chonburi Province 301 SukhumvitRoadkm143Pattaya Songkla Province 75 Soi15PetchkasemRoadMuang, Phuket Province 2/1 HongyokuthitRoadMuang, Chantaburi Province 25/14 ThaluangRoadMuang, 276 sukhumvitRoadMuang,Trad Province Nern Pra,MuangRayongProvince 8 Moo2,SoiSaengchanniramit Suratthani Province 57 Moo3,BorPudSamuiIsland Bangkok 2 SoiSoonwijai7NewPetchaburiRd. Bangkok 44/505 NavaminRd.KhetBuengKum Khet LatPhraoBangkok 1 ChokchaiRd,4LatPhrao Ampor MuengSamutPrakranProvince 123 SrinakarinRd.,Tambon Banmueng, Phyathai Bangkok 670/1 PhaholyothinRd.Samsennai, Sriracha, ChonburiProvince 90 SrirachaNakornRd.,3 Phasi Charoen,Bangkok 111 PhetKasemRd.PakKhlongTarat Bangkok 943 PhaholyothinRd.Samsennai,Phyathai Radjdhevee Bangkok 364/1 SriAduddayaRd.Phayathai Bangkok 943 PaholyothinRoadSamsennai,Phyathai Udon Thani 111 ThongyaiRd.MakKhaeng,Muang, Bangkok 2 SoiSoonwijai7NewPetchaburiRd. (Samitivej Sukhumvit, (Samitivej Sukhumvit, Samitivej Srinakarin) Samitivej Srinakarin) Holding Company Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital Private Hospital in Cambodia in Camobia as atDecember31,2012

Prefer share3,750,000Parvalue Common Share8,700,000 Common share5,442,995 Shares issuedand Par valueBaht10/share 1,108,208,020 Parvalue Prefer share1,300,000 100,000,000 Parvalue 100,000,000 Parvalue 100,000,000 Parvalue 200,538,671 Parvalue 100,000,000 Parvalue 10,500,000 Parvalue 30,000,000 Parvalue 58,611,935 Parvalue 18,751,000 Parvalue 28,000,000 Parvalue 18,000,000 Parvalue 50,000,000 Parvalue 40,000,000 Parvalue 15,000,000 Parvalue 30,000,000 Parvalue 35,954,180 Parvalue 22,511,351 Parvalue 48,100,000 Parvalue 50,000,000 Parvalue 7,000,000 Parvalue 8,400,000 Parvalue 10,000 Parvalue USD 1,000/share USD1,000/share 6,500 Parvalue Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 5/share Baht 5/share Baht 5/share Baht 5/share Baht 1/share paid-up 91.48% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 98.20% 70.00% 80.00% 79.00% 90.36% 68.06% 95.76% 97.27% 98.79% 99.68% 99.69% 99.76% 99.76% 85.17% 93.30% 99.99% 66.53% 99.15% 98.32% 89.13%

52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 A.N.B. LaboratoryCo.,Ltd. Royal BangkokHealthcareCo.,Ltd. Greenline SynergyCo.,Ltd. Services LLC.Heldthrough(AIH) Al GhaithBangkokDusitManagement (AIH) Asia InternationalHealthcareCo.,Ltd. Held throughSVHandBNH25.97% National HealthcareSystemsCo.,Ltd. Co., Ltd. Bio-Molecular Laboratories(Thailand) Phnom PenhFirstPropertyCo.,Ltd. Siem ReapLandInvestmentCo.,Ltd. S.R.Property InvestmentCo.,Ltd. Co., Ltd. B.D.M.S. InternationalMedicalServices Phnom PenhMedicalServicesCo.,Ltd. (Thailand) Co.,Ltd. Sodexo Healthcare Support Service Held throughSVH First HealthFoodCo., Ltd. Held throughSVH Irving SheridanSECo.,Ltd. BDMS Training Co.,Ltd. Held troughPPCLandRAM19.33% Udorn PattanaCo.,Ltd.*** Krungthon HospitalCo.,Lt.d Bumrungrad HospitalPLC. Ramkhamhaeng HospitalPlc.*** Cool &JoyCo.,Ltd. Bangkok HelicopterServicesCo.,Ltd. Medicpharma Co.,Ltd. New PetchburiMedicalServicesCo.,Ltd. Bankok PremierLifeInsuranceCo.,Ltd. Bangkok HealthInsuranceCo.,Ltd. Held throughRoyalBangkokHealthcareCo.,Ltd. Name Held through FirstHealth eitrdLcto uies%held Business Location Registered 15/May/04 20/May/03 27/Nov/06 27/Nov/06 14/Nov/02 20/Dec/05 20/Dec/05 15/Dec/89 20/Dec/02 23/Sep/10 11/Feb/08 10/Feb/06 23/Mar/04 18/Aug/08 25/Aug/86 26/Aug/71 29/Aug/10 29/Jun/95 Date 17/Jul/03 25/Jul/01 7/Nov/01 1/Jun/07 9/Jun/94 1/Jun/04 7/Jan/93 2/Jan/81 Khan DonPeh,PhnomPenh,Cambodia. 61A Street214,SangkatBeongRang, Phnom Penh,Cambodia. Sangkat Toeuk Thla,KhanRusseyKeo, Toeuk ThlaVillage,RussianFederationBlvd., 2301/2 Abu Dhabi,UnitedArabEmirates Of AI GaithTower 14 Bangkok 2 SoiSoonwijai7NewPetchaburiRd. Bangkok 2301/2 SoiSoonwijai7NewPetchaburiRd. Bangkok 2 SoiSoonwijai7NewPetchaburiRd. Phnom Penh,Cambodia. Sangkat BeongRang,KhanDonPeh, No.61 Street214, Siem Reap,Cambodia. Khum SvayDamdum,SrokKhet, 517 RoadNo.6,PhumSalakanseng, Siem Reap,Cambodia. Khum SvayDamdum,SrokKhet, 517 RoadNo.6,PhumSalakanseng, Wattana, Bangkok 23/93 SornchaiBuilding Soi Sukhumvit63 Bangkok 488 SrinakarinRoadSuanluang Bangkok 488 SrinakarinRoadSuanluang Bangkok 2 SoiSoonwijai7NewPetchaburiRoad Udornthani Province 555/5 PosriRoadMuang Bangkok 337 SomdejPrachaoThaksinRd.Thonburi Wattana, Bangkok 33 SukumvithRd.,Soi3KlongTun Nua Bangkok 2138 RamkhamhaengRoadBangkapi Bangkok 2 SoiSoonwijai7NewPetchaburiRoad Bangkok 1111 PloenchitRoadLumpini,Patumwan Bangkok 124 Thonburi-ParktorRoad Bangkok 2 SoiSoonwijai7NewPetchaburiRoad Bangkok 2301/2 NewPetchaburiRoad Bangkok 2 SoiSoonwijai7NewPetchaburiRoad Bangkok 39/1 Ram-IndraRoadKannayao Bangkok 2 SoiSoonwijai7NewPetchaburiRd. ëîîđóßøï ų ce Number1401,HamdanStreet, ĂćÙćøý Note :***TheCompany is shareholder only andisnot involve inmanagement of thebusiness čø Ċê ĆéĔĀö Ď î÷ Š th Ť ì Öø Ć îêÖøøö Floor, čÜđìóĄ Other services health food Restaurant and Asset management for staffwithinthenetwork Training Cneter Private Hospital Private Hospital Private Hospital Private Hospital and marketingsupport Public relations Air medicaltransport distribution ofmedicine Manufacture and DormantCompany Insurance Broker Health insurance distribution ofmedicine Manufacture and Laboratories Co.,Ltd. Holds sharesofA.N.B Holding Company Information technology Private HospitalinUAE HoldingCompany Share servicecompany laboratories Bio molecular Land HoldingCompany Land HoldingCompany Land HoldingCompany (Not yetinoperations) in Cambodia Private Hospital (Not yetinoperations) in Cambodia Private Hospital Common share728,383,622 Shares issuedand Par valueBaht1/share 10,500,000 Parvalue 73,600,000 Parvalue 20,000,000 Parvalue 30,000,000 Parvalue 15,000,000 Parvalue 12,000,000 Parvalue 10,000,000 Parvalue KHR 9,200,000/share 3,500,000 Parvalue 7,500,000 Parvalue 1,000,000 Parvalue 2,000,000 Parvalue 2,143,000 Parvalue 1,400,000 Parvalue KHR20,000/share 115,000 Parvalue 100,000 Parvalue 500,000 Parvalue 150,000 Parvalue KHR 20,000/share KHR 20,000/share Baht 1,000/share 10,000 Parvalue 10,000 Parvalue 10,000 Parvalue 10,000 Parvalue AED 1,000/share USD1,000/share 1,000 Parvalue 1,000 Parvalue 1,000 Parvalue 1,000 Parvalue Baht 100/share Baht 100/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 10/share Baht 1/share paid-up 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 74.00% 99.99% 96.03% 15.26% 20.01% 23.88% 38.24% 30.00% 49.00% 49.00% 99.94% 99.93% 30.00% 74.02% 95.00% 49.00% 49.00% 49.00% 151 A n n u a l R e p o r t 2 0 1 2 Juristic persons in which the company holds 10% of shares or greater

BANGKOK DUSIT MEDICAL SERVICES Public Company Limited 2 Soi Soonvijai 7 New Phetchburi Rd., Bangkok, Thailand 10310 Tel. 66-2310-3000 Fax. 66-2318-1546 www.bangkokhospital.com