October 24, 2017 NEUTRAL

Kasikornbank (KBANK TB) Share Price: Bt213.0 Target Price: Bt210.0 (-1.4%) Trying to weather the storm

Company Update ƒ Maintain FY17 financial targets but expect credit cost to exceed

225bp; announcing FY18 targets on 30 October ƒ 3Q17 profit grew 5% yoy to Bt9.5bn, missing expectations due to weak net insurance income and high provision expenses ƒ NEUTRAL, Bt210 TP implies 12x FY18F P/E and 1.3x P/BV; credit cost to remain elevated due to weak asset quality and IFRS9 implementation

Credit cost will exceed FY17 target due to high NPL formation We had neutral feedback from the analyst briefing on Friday. The Jesada TECHAHUSDIN, CFA keeps all financial targets for this year but expects full year credit cost to 662 - 659 7000 ext 5004 [email protected] be similar to 9M17 (233bp) vs previous guidance of 200-225bp. Following high NPL formation, the bank plans to sell NPL in 4Q17 to Remark: KSS is a subsidiary of Bank of Ayudhya Plc. and is therefore unable to issue a report on Bank of

COMPANY RESEARCH | maintain NPL ratio and NPL coverage at 3Q17 levels. KBANK wrote-off Ayudhya Plc. Bt18.5bn NPL in 9M17 vs Bt16bn NPL sale and write-off in 2016. We expect lower credit cost in 2018 due to the high-base effect in FY17 Key Data (EARTH NPL). The bank will hold an analyst meeting and announce 12-mth high/low (Bt) 218 / 165.5 FY18 financial targets on 30 October. Market capital (Btm/US$m) 509,764 / 15,364 3m avg. turnover (Btm/US$m) 1,230 / 37.1 3Q17 earnings miss estimate due to high provision expenses Free float (%) 68.7 Issued shares (m shares) 2,393 KBANK booked Bt9.5bn net profit (EPS Bt3.96) for 3Q17, down 13% yoy Major shareholders: but up 5% qoq, due to weak insurance income and higher than expected - THAI NVDR CO LTD 27.7 credit cost. 9M17 net profit is 75% of our full year forecast. Loans grew - STATE STREET CORP 16.1 - VANGUARD GROUP INC 3.6 4.2% yoy (flat qoq) led by corporate loans. NIM improved 4bp qoq to 3.47% thanks to higher loan yield and lower cost of funds. Non-NII grew Share Price Performance 6% yoy due to large investment gains. Credit cost was 238bp in 3Q17 vs our forecast of 200bp. NPL and special mention loans (SML) grew 3% qoq and 29% qoq while restructured loans which incurred losses grew 5% qoq. NPL coverage was stable qoq at 141%. NPL formation will stay high given on expectations of rising NPL/SML.

NEUTRAL; weak non-NII growth, high credit cost remain key drags KBANK loses its long-term appeal given slower non-NII growth and higher-than-peers’ credit cost. There is downside risk to our forecast YTD 1Mth 3Mth 12Mth earnings as we assumed only 205bp credit cost for FY18. Our sensitivity Absolute (%) 20.0 0.0 9.0 19.3 analysis shows that every 5bp increase in credit cost (vs our Relative to index (%) 10.3 (1.3) 1.5 5.9 assumption) would reduce FY18F earnings by 1.6%. Krungsri Securities vs Market Financial Summary (Btm) Positive Neutral Negative Year to Dec 2015 2016 2017F 2018F 2019F Market Operating Income 147,515 153,403 160,533 170,138 181,540 Recommend 13 13 4 Pre-provisioning Profit 80,859 89,548 92,847 97,714 103,323 Krungsri Market % +/- Net Profit 39,474 40,174 37,974 42,487 47,610 Target Price (Bt) 210.0 213.3 (1.5) Basic EPS (Bt) 16.49 16.79 15.87 17.75 19.89 ’17 Net Profit (Btm) 37,974 38,330 (0.9) ’18 Net Profit (Btm) 42,487 44,245 (4.0) EPS growth (%) (14.47) 1.77) (5.48) 11.89 12.06 DPS (Bt) 4.00 4.00 4.00 4.50 5.00 Krungsri's earnings revision PER (x) 12.9 12.7 13.4 12.0 10.7 Div Yield (%) 1.88 1.88 1.88 2.11 2.35 2017F 2018F P/BV (x) 1.78 1.58 1.46 1.33 1.22 Earnings revision (%) - - Book Value (Bt) 119.42 134.44 146.30 159.56 174.45 Source: Bloomberg, Krungsri Securities

ROAE (%) 14.54 13.23 11.30 11.61 11.91 ROAA (%) 1.78 1.68 1.47 1.55 1.63

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

Company Update | KBANK October 24, 2017

KBANK: 3Q17 results review Financial statement (Btm) 3Q16 2Q17 3Q17 Chg YoY Chg QoQ 3Q17F Diff Balance sheet Loans 1,681,224 1,752,227 1,752,249 4.2% 0.0% 1,752,227 0% Deposits 1,774,377 1,839,067 1,844,427 3.9% 0.3% 1,857,458 -1% Income statement Interest income 28,940 29,727 29,957 4% 1% 30,208 -2% Interest expenses -6,589 -6,383 -6,246 (5%) (2%) -6,525 -2% Net interest income 22,351 23,343 23,710 6% 2% 23,683 -1% Net fee income 9,924 10,215 10,643 7% 4% 10,420 -2% Non-interest income 15,472 15,967 16,437 6% 3% 16,246 -2% Total operating income 37,824 39,310 40,147 6% 2% 39,929 -2% Operating expenses -15,808 -15,851 -16,338 3% 3% -16,282 -3% Operating profit 22,016 23,459 23,810 8% 1% 23,647 -1% Loan loss provisions -6,867 -10,626 -10,405 52% (2%) -8,761 21% Pre-tax profit 15,149 12,833 13,405 (12%) 4% 14,886 -14% Tax -2,958 -2,455 -2,581 (13%) 5% -2,977 -18% Minority interest -1,334 -1,392 -1,349 1% (3%) -1,397 0% Net profit 10,856 8,986 9,475 (13%) 5% 10,512 -15% EPS 4.54 3.75 3.96 (13%) 5% 4.39 -15% Key ratios Loans to deposits 94.8% 95.3% 95.0% 94.3% Net interest margin 3.45% 3.43% 3.47% 3.40% Cost to income 41.8% 40.3% 40.7% 40.8% Gross NPL (Btm) 64,923 66,843 68,873 67,843 NPL/ Gross loans 3.86% 3.81% 3.93% 3.87% LLR/NPL 127% 141% 141% 144% Credit cost 1.64% 2.46% 2.38% 2.00% ROA 1.79% 1.46% 1.51% 1.67% ROE 14.2% 10.8% 11.2% 12.6% Source: Company data, Krungsri Securities

KBANK: Financial targets 2016 Actual 2017 Targets 1H17 Actual 3Q17 Actual Our forecast NIM 3.47% 3.3-3.5% 3.42% 3.43% 3.43% Loan Growth 5.45% 4-6% 5.3% YoY 4.8% YoY, 3.2% YTD 5.00% Non-Interest Income Growth 2.00% Up to 5% -4.9% 6.2% 2.00% Non-Interest Income Ratio 41.54% About 40% 40.4% 40.9% 40.5% Cost to Income Ratio 41.63% Mid-40s 39.9% 40.7% 42.2% Credit Cost per year (bps) 204 bps 200-225 bps 229 bps 238 bps 225 bps NPL Ratio (gross) 3.32% 3.3-3.4% 3.31% 3.30% 3.85%* Source: Company data, Krungsri Securities

Krungsri Securities Research 2

Company Update | KBANK October 24, 2017

P/E Band P/BV Band

Source: Bloomberg, Krungsri Securities Source: Bloomberg, Krungsri Securities

Peer comparison Market PE P/BV Div Yield ROE Share Price Cap (x) (x) (%) (%) Performance BB Ticker Name US$ 17F 18F 17F 18F 17F 17F 1M 3M 6M YTD Thailand BAY TB BANK OF AYUDHYA PCL 8,757 12.4 11.2 1.3 1.2 2.48 10.9 3.3 8.2 4.6 (1.3) BBL TB BANK PUBLIC CO LTD 11,075 11.5 10.5 0.9 0.9 3.38 8.2 2.7 5.5 6.9 20.7 KBANK TB PCL 15,364 13.4 12.0 1.5 1.3 1.88 11.6 0.0 9.0 13.0 20.0 KTB TB KRUNG THAI BANK PUB CO LTD 7,750 10.6 8.8 0.9 0.8 3.59 9.9 (2.6) 1.7 (5.6) 4.0 KKP TB PCL 1,927 11.2 10.5 1.6 1.5 7.95 14.6 7.9 3.4 10.2 28.0 SCB TB PUB CO 15,043 10.4 10.2 1.4 1.3 3.74 13.7 (4.9) (3.3) (8.1) (3.6) TCAP TB THANACHART CAPITAL PCL 1,808 9.0 9.1 1.0 0.9 4.27 10.4 7.9 9.0 10.2 17.0 TISCO TB TISCO FINANCIAL GROUP PCL 2,033 11.0 9.3 2.0 1.7 4.75 19.8 13.1 14.6 14.2 39.8 TMB TB TMB BANK PCL 3,409 12.8 10.7 1.3 1.2 2.34 11.2 3.2 12.2 13.2 22.9 Average 11.410.3 1.3 1.2 3.8 12.3 Malaysia MAY MK MALAYAN BANKING BHD 23,268 13.5 12.8 1.3 1.3 5.80 10.0 (5.7) (3.4) 2.3 13.3 CIMB MK CIMB GROUP HOLDINGS BHD 13,262 12.3 11.2 1.2 1.1 3.72 9.6 (1.9) (1.9) 12.5 37.3 PBK MK PUBLIC BANK BERHAD 18,700 15.0 14.3 2.1 2.0 2.91 14.9 (0.7) 0.5 2.7 3.8 Average 13.612.8 1.5 1.5 4.1 11.5 Indonesia BBCA IJ BANK CENTRAL ASIA TBK PT 37,113 21.9 19.6 3.8 3.4 1.09 18.8 6.8 10.3 17.5 31.3 BBRI IJ BANK RAKYAT INDONESIA PERSER 28,512 13.6 12.0 2.4 2.1 2.63 18.2 4.0 6.1 22.5 33.8 BMRI IJ BANK MANDIRI PERSERO TBK PT 24,509 16.9 13.6 2.0 1.8 1.96 12.5 7.6 5.2 23.2 22.7 Average 17.515.1 2.7 2.4 1.9 16.5 Singapore DBS SP DBS GROUP HOLDINGS LTD 41,127 12.0 10.7 1.2 1.1 3.00 10.3 6.6 1.8 15.5 26.0 UOB SP LTD 29,738 12.2 11.2 1.2 1.1 2.98 10.0 5.1 2.7 11.7 19.1 OCBC SP OVERSEA-CHINESE BANKING CORP 35,439 12.2 11.2 1.3 1.2 3.21 10.5 4.4 4.0 19.7 28.8 Average 12.111.0 1.2 1.1 3.1 10.3 Philippines BPI PM BANK OF THE PHILIPPINE ISLAN 7,479 16.9 14.7 2.1 1.9 1.90 13.3 (3.9) (6.8) (7.4) 10.4 MBT PM METROPOLITAN BANK & TRUST 5,729 14.8 12.2 1.4 1.2 1.07 9.6 5.9 1.4 11.1 27.8 BDO PM BDO UNIBANK INC 12,134 21.5 18.2 2.1 1.9 0.95 11.0 10.1 17.7 20.4 33.5 PNB PM PHILIPPINE NATIONAL BANK 1,422 12.0 9.8 0.7 0.7 1.14 5.8 (3.1) (13.2) (1.5) 7.3 SECB PM SECURITY BANK CORP 3,852 20.0 17.4 1.9 1.7 0.86 9.8 5.6 19.0 22.4 38.8 UBP PM UNION BANK OF PHILIPPINES 1,784 10.9 8.9 1.2 1.1 2.51 13.8 0.2 0.5 8.9 16.4 RCB PM RIZAL COMMERCIAL BANKING 1,626 19.9 18.5 1.3 1.2 1.48 6.5 19.8 3.1 24.6 78.2 Average 16.614.2 1.5 1.4 1.4 10.0 Average (Simple) 13.9 12.3 1.6 1.4 2.9 11.8 Source: Company data, Bloomberg, Krungsri Securities

Krungsri Securities Research 3

Company Update | KBANK October 24, 2017

Financial statement - Quarter (Btm) 3Q16 4Q16 1Q17 2Q17 3Q17

Balance sheet Loans 1,681,224 1,697,581 1,701,675 1,752,227 1,752,249 Deposits 1,774,377 1,794,835 1,795,072 1,839,067 1,844,427 Income statement Interest income 28,940 29,533 29,371 29,727 29,957 Interest expense (6,589) (6,529) (6,283) (6,383) (6,246) Net interest income 22,351 23,004 23,088 23,343 23,710 Net fee and service income 9,924 9,887 10,085 10,215 10,643 Non-interest income 15,472 15,153 15,518 15,967 16,437 Total operating income 37,824 38,158 38,605 39,310 40,147 Operating expense (15,808) (17,606) (15,224) (15,851) (16,338) Operating profit 22,016 20,551 23,381 23,459 23,810 Loan loss provisions (6,867) (6,871) (9,132) (10,626) (10,405) Pre-tax profit 15,149 13,680 14,249 12,833 13,405 Tax (2,958) (2,342) (2,717) (2,455) (2,581) Minority interest (1,334) (1,094) (1,360) (1,392) (1,349) Net profit 10,856 10,245 10,172 8,986 9,475 EPS 4.54 4.28 4.25 3.75 3.96

Key ratios Loans to deposits 94.8% 94.6% 94.8% 95.3% 95.0% Net interest margin 3.45% 3.46% 3.41% 3.43% 3.47% Cost to income 41.79% 46.14% 39.43% 40.32% 40.69%

Gross NPL (Btm) 64,923 65,265 65,393 66,843 68,873 NPL/ Gross loans 3.86% 3.84% 3.84% 3.81% 3.93% Credit cost 1.64% 1.63% 2.15% 2.46% 2.38%

Krungsri Securities Research 4

Company Update | KBANK October 24, 2017

INCOME STATEMENT (Btm) 2015 2016 2017F 2018F 2019F

Interest income 114,354 115,873 123,679 131,885 140,778 Interest expenses (29,341) (26,195) (28,145) (30,141) (32,419) Net interest income 85,012 89,678 95,533 101,744 108,359

Net fee income 37,526 38,943 39,722 42,105 45,053 Non-interest income 62,503 63,725 64,999 68,394 73,181

Total operating income 147,515 153,403 160,533 170,138 181,540 Operating expense (66,656) (63,854) (67,686) (72,424) (78,218)

Operating profit 80,859 89,548 92,847 97,714 103,323 Loan loss provisions (26,377) (33,753) (39,168) (37,655) (36,022)

Pretax profit 54,482 55,796 53,679 60,059 67,301 Taxation (10,527) (10,456) (10,736) (12,012) (13,460) Minority interest (4,481) (5,166) (4,970) (5,560) (6,231)

Net profit 39,474 40,174 37,974 42,487 47,610 Recurring net profit 39,474 40,174 37,974 42,487 47,610

Basic EPS (Bt) 16.49 16.79 15.87 17.75 19.89 DPS (Bt) 4.00 4.00 4.00 4.50 5.00 BVPS (Bt) 119.42 134.44 146.30 159.56 174.45

BALANCE SHEET (Btm) 2015 2016 2017F 2018F 2019F

Cash 56,226 60,589 60,735 55,068 66,727 Interbank & Money market 308,745 349,206 377,142 411,085 439,861 Investment securities 477,200 649,598 701,566 764,707 818,236 Investment in associates 662 781 820 869 939 Net loans 1,548,658 1,615,861 1,685,247 1,777,353 1,876,542 Customer liabilities under acceptances 131 2,583 2,712 2,874 3,047 Properties foreclosed - net 14,197 15,444 16,216 17,189 18,564 Premises and equipment - net 45,284 49,728 52,214 55,347 59,775 Intangible asset 24,234 23,970 25,168 26,678 28,812 Other assets 79,969 78,109 82,014 86,935 93,890 Total assets 2,555,306 2,845,868 3,003,836 3,198,107 3,406,393

Deposits 1,705,379 1,794,835 1,884,577 1,997,651 2,117,510 Interbank & Money market 71,466 160,052 168,055 178,138 188,826 Liabilities payable on demand 23,545 19,456 20,429 21,655 22,954 Borrowings 85,578 96,376 101,195 107,266 113,702 Bank liabilities under acceptances 131 2,583 2,712 2,874 3,047 Other liabilities 356,994 418,655 439,588 465,963 493,921 Total liabilities 2,243,092 2,491,956 2,616,554 2,773,547 2,939,960

Share capital 23,933 23,933 23,933 23,933 23,933 Share premium 18,103 18,103 18,103 18,103 18,103 Other reserves 14,843 19,786 19,786 19,786 19,786 Retained earnings 228,921 259,924 288,325 320,042 355,685 Total equity 285,800 321,746 350,147 381,864 417,507 Minority interests 26,413 32,166 37,135 42,695 48,926 Total equity & liabilities 2,555,305 2,845,868 3,003,836 3,198,107 3,406,393

Krungsri Securities Research 5

Company Update | KBANK October 24, 2017

FINANCIAL RATIOS 2015 2016 2017F 2018F 2019F

Profitability ratios Net int. inc./ total op. inc 57.6% 58.5% 59.5% 59.8% 59.7% Net fee inc./ total op. inc 25.4% 25.4% 24.7% 24.7% 24.8% Non-interest inc./ total op. inc 42.4% 41.5% 40.5% 40.2% 40.3%

Net interest margin 3.67% 3.52% 3.43% 3.43% 3.42% Cost-to-income 45.2% 41.6% 42.2% 42.6% 43.1%

Liquidity ratios Net L/D ratio 94.4% 94.6% 94.6% 94.6% 94.6% Net L/D ratio (inc. B/E) 89.9% 89.8% 89.8% 89.8% 89.8%

Capital adequacy ratios Tier 1 Ratio 13.8% 14.3% 14.9% 15.4% 15.9% CAR 17.4% 18.2% 18.8% 19.3% 19.8%

Asset quality ratios NPL ratio 3.08% 3.84% 3.85% 3.80% 3.75% Loan loss coverage ratio 129.6% 130.6% 146.8% 161.3% 173.3%

Returns ratios ROAE 14.5% 13.2% 11.3% 11.6% 11.9% ROAA 1.8% 1.7% 1.5% 1.5% 1.6%

GROWTH RATES 2015 2016 2017F 2018F 2019F

Total assets 7.0% 11.4% 5.6% 6.5% 6.5% Shareholders equity 11.2% 12.6% 8.8% 9.1% 9.3% Net loans 5.4% 5.4% 5.0% 6.0% 6.0% Deposits 4.6% 5.2% 5.0% 6.0% 6.0%

Interest income 0.7% 1.3% 6.7% 6.6% 6.7% Interest expense (3.6%) (10.7%) 7.4% 7.1% 7.6% Net interest income 2.3% 5.5% 6.5% 6.5% 6.5% Net fee income 10.6% 3.8% 2.0% 6.0% 7.0% Non-interest income 12.6% 2.0% 2.0% 5.2% 7.0% Operating income 6.4% 4.0% 4.6% 6.0% 6.7% Operating expense 8.5% (4.2%) 6.0% 7.0% 8.0% Operating profit 4.7% 10.7% 3.7% 5.2% 5.7% Pre-tax profit (13.5%) 2.4% (3.8%) 11.9% 12.1% Net profit (14.5%) 1.8% (5.5%) 11.9% 12.1% Recurring net profit (14.5%) 1.8% (5.5%) 11.9% 12.1%

Krungsri Securities Research 6

CG Rating 2016 Companies with CG Rating

AMATA AOT BAFS BAY BCP BIGC BTS BWG CK CPF CPN CSL DELTA DEMCO DRT DTAC DTC EASTW EGCO GFPT GPSC GRAMMY HANA HMPRO INTUCH IRPC IVL KBANK KCE KKP KTB KTC LHBANK LPN MBK MCOT MINT MONO NKI NYT OTO PHOL PPS PS PSL PTT PTTEP PTTGC QH QTC RATCH SAMART SAMTEL SAT SC SCB SCC SCCC SE-ED SIM SITHAI SNC SPALI SSSC STEC SVI TCAP THCOM TISCO TKT TMB TNDT TOP TSC TTCL TU UV VGI WACOAL WAVE

2S AAV ACAP ADVANC AGE AH AHC AKP ALUCON AMANAH ANAN AP APCO APCS ARIP ASIA ASIMAR ASK ASP AUCT AYUD BANPU BBL BDMS BEM BFIT BLA BOL BROOK CEN CENTEL CFRESH CGH CHG CHO CHOW CI CIMBT CKP CM CNS CNT COL CPI DCC EA ECF EE ERW FORTH FPI GCAP GLOBAL GBX GC GL GLOW GUNKUL HOTPOT HYDRO ICC ICHI IFEC INET IRC JSP K KSL KTIS L&E LANNA LH LHK LIT LOXLEY LRH LST M MACO MALEE MBKET MC MEGA MFC MOONG MSC MTI MTLS NCH NOBLE NSI NTV OCC OGC OISHI ORI PACE PAP PCSGH PDI PE PG PJW PLANB PM PPP PR PRANDA PREM PRG PRINC PT PTG PYLON Q-CON RICHY ROBINS RS RWI S SAMCO SABINA SALEE S&J SCG SEAFO SIAM SINGER SIS SMK SMPC SMT SNP SPI SPPT SPRC SR SSF SST STA SUSCO SUTHA SWC SYMC SYNEX SYTNEC TAE TAKUNI TASCO TBSC TCC TF TFI TGCI

AEC AEONTS AF AIRA AIT AJ AKR AMARIN AMATAV ARROW APURE AQUA AMC AS BA BEAUTY BEC BH BIG BJC BJCHI BKD BR BROCK BRR BTNC CBG CGD CHARAN CITY CMR COLOR COM7 CPL CSC CSP CSR CSS CTW DCON DIMET DNA EARTH EASON ECL EFORL EPCO EPG ESSO FE FER FOCUS FSMART FSS FVC GEL GIFT GLAND GOLD GSTEL GYT HPT HTC HTECH IFS IHL ILINK INSURE IRPC IT ITD J JMART JMT JUBILE JWD KASET KBS KCAR KGI KKC KOOL KWC KYE LALIN LPH MAJOR MAKRO MATCH MATI M-CHAI MDX MFEC MJD MK MODERN MPG NC NCL NDR NEP NOK NUSA PATO PCA PDG PF PICO PIMO PL PLAT PLE PMTA PPM PRIN PSTC QLT RCI RCL RICH RML RPC SANKO SAPPE SAWAD SCI SCN SCP SEAOIL SENA SIRI SKR SLP SMG SMIT SORKON SPA SPC SPCG SPVI SSC STANLY STPI SUC TACC TCCC TCMC TEAM TFD TFG TIC TIW TKN TLUXE TMD TNP TOPP TPA TPAC TPCH TPIPL TPOLY TRITN TRT TTI TVI TWP U UBIS UMI UPOIC UT UWC VIBHA VPO VTE WICE WIIK WIN XO

Disclaimer The disclosure of the survey result of the Thai Institute of Directors Association ("IOD") regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an assessment of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date or when there is any change to the relevant information. Nevertheless, Krungsri Securities Public Company Limited does not confirm, verify, or certify the accuracy and completeness of such survey result.

Anti‐corruption Progress Indicator 2016

Companies that have declared their intention to join CAC

A AI AIE AIR AJ ALUCON AMATAV AOT APCO AQUA ARROW ASIA ASK AU BCH BJC BJCHI BLAND BR BROCK BRR CEN CGH CHEWA CHG CHOTI CHOW CIG COL COM7 CPALL CPF CPR CSC EKH EPCO FC FER FPI FSMART GEL GFPT GGC GIFT GJS GLOBAL GOLD GPSC GREEN GSTEL GUNKUL HARN IFS ILINK INET IRC J JMART JMT JUBILE JUTHA KASET KBS KCAR KTECH KWC KYE L&E LEE LIT LVT MAKRO MATCH MATI MBAX MC MFEC MIDA MILL ML MTLS NBC NCL NEP NINE NMG NNCL NTV NUSA NWR OGC PACE PAF PAP PATO PCSGH PIMO PK PL PLANB POST PRINC PRO PSTC PYLON QTC ROH ROJNA RWI SANKO SAUCE SC SCCC SCN SEAOIL SE-ED SENA SIRI SMART SPACK SPPT SPRC SR SRICHA SST STA SUPER SUSCO SWC SYMC TAKUNI TBSP TFI THE TICON TIP TKN TLUXE TMILL TMT TNP TPA TRUE TSE TTI TU TVD TVO TVT TWPC U UPA UREKA UWC VGI VIBHA VIH VNT WAVE WHA WICE WIIK Companies certified by CAC

ADVANC AKP AMANAH AP ASP AYUD BAFS BANPU BAY BBL BCP BKI BLA BROOK BTS BWG CENTEL CFRESH CIMBT CM CNS CPI CPN CSL DCC DEMCO DIMET DRT DTAC DTC EASTW ECL EGCO FE FNS FSS GBX GCAP GLOW HANA HMPRO HTC ICC IFEC INTUCH IRPC IVL K KBANK KCE KGI KKP KSL KTB KTC LANNA LHBANK LHK LPN MBK MBKET MCOT MFC MINT MONO MOONG MSC MTI NKI NSI OCC OCEAN PB PDI PE PG PHOL PLAT PM PPP PPS PRANDA PREB PRG PSH PSL PT PTG PTT PTTEP PTTGC Q-CON QH QLT RATCH RML ROBINS S & J SABINA SAT SCB SCC SCG SGP SINGER SIS SITHAI SMIT SMPC SNC SNP SORKON SPC SPI SSF SSI SSSC SVI SYNTEC TAE TCAP TCMC TFG TGCI THANI THCOM THRE THREL TIPCO TISCO TKT TMB TMD TNITY TNL TOG TOP TPCORP TRU TSC TSTH TTCL TVI UOBKH WACOAL N/A

2S AAV ABICO ACAP ACC ADAM AEC AEONTS AF AFC AGE AH AHC AIT AJA AKR ALLA ALT AMA AMARIN AMATA AMC ANAN APCS APEX APURE AQ ARIP AS ASAP ASEFA ASIAN ASIMAR ASN ATP30 AUCT BA BAT-3K BCPG BDMS BEAUTY BEC BEM BFIT BGRIM BGT BH BIG BIZ BKD BLISS BM BOL BPP BSBM BSM BTC BTNC BTW BUI CBG CCET CCP CGD CHARAN CHO CHUO CI CITY CK CKP CMO CMR CNT COLOR COMAN CPH CPL CRANE CRD CSP CSR CSS CTW CWT D DCON DCORP DELTA DIGI DNA DTCI EA EARTH EASON ECF EE EFORL EIC EMC EPG ERW ESSO ESTAR ETE EVER F&D FANCY FMT FN FOCUS FORTH FTE FVC GC GENCO GL GLAND GRAMMY GRAND GTB GYT HFT HOTPOT HPT HTECH HYDRO ICHI ICN IEC IHL III INGRS INOX INSURE IRCP IT ITD ITEL JAS JCT JSP JTS JWD KAMART KC KCM KDH KIAT KKC KOOL KTIS KWG LALIN LDC LH LOXLEY LPH LRH LST LTX M MACO MAJOR MALEE MANRIN MAX M-CHAI MCS MDX MEGA METCO MGT MJD MK MM MODERN MPG MPIC NC NCH NDR NETBAY NEW NEWS NFC NOBLE NOK NPK NPP NVD NYT OHTL OISHI ORI OTO PAE PDG PERM PF PICO PJW PLANET PRECHA PMTA POLAR POMPUI PPM PRAKIT PLE PRIN PRM PTL RAM RCI RCL RICH RICHY RJH ROCK RP RPC RPH RS S S11 SAFARI SALEE SAM SAMART SAMCO SAMTEL SAPPE SAWAD SAWANG SCI SCP SDC SE SEAFCO SELIC SF SFP SGF SHANG SIAM SIMAT SKN SKR SKY SLP SMK SMM SMT SOLAR SPA SPALI SPCG SPG SPORT SPVI SQ SSC SSP STANLY STAR STEC STHAI STPI SUC SUTHA SVH SVOA SYNEX T TACC TAPAC TASCO TC TCB TCC TCCC TCJ TCOAT TEAM TFD TFMAMA TGPRO TH THAI THANA THIP THL TIC TIW TK TKS TM TMC TMI TMW TNDT TNH TNPC TNR TOA TOPP TPAC TPBI TPCH TPIPL TPIPP TPOLY TPP TR TRC TRITN TRT TRUBB TSF TSI TSR TSTE TTA TTL TTTM TTW TUCC TWP TWZ TYCN UAC UBIS UEC UKEM UMI UMS UNIQ UP UPF UPOIC UT UTP UV UVAN VARO VI VNG VPO VTE WG WHAUP WIN WINNER WORK WORLD WP WPH WR XO YCI YNP YUASA ZIGA ZMICO Disclaimer The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, Krungsri Securities Public Company Limited does not confirm, verify, or certify the accuracy and completeness of the assessment result." Reference Disclosure: Companies participating in Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) under Thai Institute of Directors (as of July 31, 2017) are categorised into: • Companies that have declared their intention to join CAC • Companies certified by CAC.

Krungsri Securities Public Company Limited

Headquarters 898 Ploenchit Tower, 3rd Floor, Ploenchit Road, Lumpini Pathumwan, Bangkok 10330 Tel: 0-2659-7000 Fax: 0-2658-5699 Internet Trading: 0-2659-7777 Branches Emporium Nakhon Pathom 662 Emporium Tower, Fl. 10, Sukhumvit 24 Road 67/1 Ratchadamnoen Road, Tambol Phra Pathom Jaedee, Klongton, Klongtoey, Bangkok 10110 Amphur Muang, Nakhon Pathom 73000 Tel: 0-2695-4500 Fax: 0-2695-4599 Tel: 0-3427-5500-7 Fax: 0-3421-8989

Central Bangna Suphanburi 589/151 Central City Tower 1 Office, Fl. 27 249/171-172 Moo 5 Tambol Ta Rahad, Bangna-Trad Road, Bangna, Bangkok 10260 Amphur Muang, Suphanburi, 72000 Tel: 0-2763-2000 Fax: 0-2399-1448 Tel: 0-3550-1234 Fax: 0-3552-2449

Rama II Nakhon Ratchasima 111/917-919 Rama II Road, Smaedum, 168 Chomphon Road, Tambol Nai Muang, Bangkhuntien, Bangkok 10150 Amphur Muang Nakhon Ratchasima, Tel: 0-2895-9575 Fax: 0-2895-9557 Nakhon Ratchasima 30000 Tel: 0-4425-1211-4 Fax: 0-4425-1215 Vibhavadi-rangsit Bank of Ayudhya Public Company Limited Khon Kaen 123 Suntowers (B) Building, Vibhavadirangsit Road, 114 Sri Chan Road, Tambol Nai Muang, Jompol, Jatujak, Bangkok 10900 Amphur Muang, Khon Kaen 40000 Tel: 0-2273-8388 Fax: 0-2273-8399 Tel: 0-4322-6120 Fax: 0-4322-6180

Chonburi Chiang Mai 64/17 Sukhumvit Road, Tambol Bang Plasoi, 70 Chang Phuak Road, Tambol Sri Phum Amphur Muang, Chonburi 20000 Amphur Muang, Chiang Mai 50200 Tel: 0-3879-0430 Fax: 0-3879-0425 Tel: 0-5321-9234-6 Fax: 0-5321-9247

Hat Yai Branch Chiang Rai 90-92-94 Nipat U Tit Nueng Road,Tambol Hat Yai, 231-232 Thamalai Road, Tambol Wiang, Amphur Hat Yai, Songkhla 90110 Amphur Muang, Chiang Rai 57000 Tel: 0-7422-1229 Fax: 0-7422-1411 Tel: 0-5371-6489 Fax: 0-5371-6490

Phitsanulok 275/1 Phichaisongkram Road, Tambol Nai Muang, Amphur Muang, Phitsanulok 65000 Tel: 0-5530-3360 Fax: 0-5530-2580

Central line: Analyst Team Sector Coverage 662-659-7000 E-mail Naphat Chantaraserekul, Head of Research Energy, Petrochemical, Strategy ext. 5000 [email protected] Kittisorn Pruitipat, CFA, FRM Property, ICT, Contractor ext. 5019 [email protected] Jesada Techahusdin, CFA Banking, Consumer Finance, Insurance ext. 5004 [email protected] Sunthorn Thongthip Food, Transportation, Strategy ext. 5009 [email protected] Worrapong Tuntiwutthipong Electronic, Automotive, Commerce ext. 5016 [email protected] Karun Intrachai Renewable Energy, Food ext. 5010 [email protected] Teerapol Udomvej Healthcare, Tourism ext. 5012 [email protected] Kitti Pitakteerabandit Transportation, Media ext. 5008 [email protected] Artit Jansawang Mid - Small cap, MAI ext. 5005 [email protected] Nurudon Rusme Mid - Small cap, MAI ext. 5007 [email protected] Nalinee Praman, Assistant Analyst Mid - Small cap, MAI

Definition of Ratings Fax 662-658-5643

OUTPERFORM - Stocks with an expected capital gain above 10% in the next 12 months for small-caps, above 5% for big-caps NEUTRAL - Stocks with an expected capital gain between -10% and +10% in the next 12 months for small-caps, -5% to +5% for big-caps UNDERPERFORM - Stocks with an expected capital gain below 10% in the next 12 months for small-caps, below 5% for big-caps www.krungsrisecurities.com