MBK Public Company Limited

2007/2008 Content

Š Corporate Overview Š History & Development Š Business Structure Š Shopping Plaza Š Hotel & Tourism Š Golf Š Real Estate Development Š Rice Š Financial Highlights Š Stock Per formance

2 Corporate Overview History & Development

1974 Established the business 1978 Listed on the Stock Exchange of (SET) 1985 Opened MBK Center Shopping Plaza 1990 Became the major shareholder of Patum Rice Mill and Granary Plc. (PRG) 1996 Opened Pathumwan Princess Hotel, 2001 Invested in Royal Orchid Hotel (Thailand) Plc. (Royal Orchid Sheraton Hotel) 2002 Acquired Tinidee Hotel @ Rayong (Formerly known as Royal Princess Ranong Hotel) & the Loch Plam Course, Phuket Invested in Co., Ltd. 2003 Opened Sheraton Krabi Beach Resort Acquired Plan Estate Co., Ltd. from Thanachart Capital (TCAP) Purchased land in Phuket (East side of the Loch Palm Course) for the development of the new golf course; the Red Mountain Course Purchased 116 rais of land in Samui for future development 2004 Acquired MBK Leisure, a tourist business operation 2006 Purchased land in central Pattaya for future development

4 History & Development

2007 Opened the new golf course; the Red Mountain Course Renew lease agreement on land and property development (location of MBK Center, MBK Tower and Patumwan Princess Hotel) with Set up a broker of new & old cars, motorcycles and manchines company; Apple Auto Auction (Thailand) 2008 Established 2 new real estate development companies; MBK Square Co., Ltd. & MBK Arkhet Co., Ltd.

5 Business Structure As of 30 JUNE 2008

Other Shopping Plaza Hotel & Tourism Golf RlEttReal Estate Rice Development Business

The Loch Palm Mahboonkrong MBK Center Pathumwan Plan Properties PiPrincess H ot el Course Rice (69.88%) (74.52%)

Siam Piwat Sheraton Krabi The Red Plan Estate (30.72%) Beach Resort Mountain Course (69.88%) (69.88%) Baan Suan Tinidee Hotel Rim Had @ Ranong* Cha-am

BSBann Suan Royal Orchid Siam Discovery Loch Palm Sheraton Phuket (29.77%)

Siam Tower Crystal Lake Absolute Travel (69.88%)

Siam Paragon MBK Leisure (JV 50%) (49.00%)

* Formerly known as Royal Princess Ranong Hotel 6 Shareholder Structure

Major Shareholder % Š Patum Rice Mill and Granary Plc. 25.14 Š Thanach ar t G roup 20. 76 Š RBC Dexia Investor Services Trust 4.93 Š Thai NVDR Company Limited 2.85 Š Mr. Yongsak Kanathanavanich 2.35

Information as at April 17, 2008

7 Shopping Plaza Industry Overview: Retail

Š 6 new retail centers (5 community malls and a superstore) with 59,733 sq.m. opened in Bangkok in 1Q08 resulted in the total supply of 4.79 million sq.m., an increase of 0.8% q-o-q and 3.1% y-o-y Š Shopping malls, department stores and superstores accounted for 51.3%, 26.3% and 22.3% of the total supply, respectively. Š Overall occupancy rate in 1Q08 was 93.9%, a slight drop from 94.6%in% in 4Q07 with a declining occupancy rate in downtown and midtown areas but a rising occupancy rate in suburban areas. Š Average rents remained relatively stable in 1Q08. Š New supply of 62,300 sq.m. is expected in 2Q08 riiising thttlthe total supp ly to 4.85 million sq.m. with additional 248,721 sq.m. by the end of 2008 rising the total supply to 5.10 million sq.m. Another 61,723 sqqpy.m. is expected by 2009 and 266,200 sq.m. in 2010.

Source: CB Richard Ellis 9 Industry Overview: Office

Š In 1Q08, total office space in Bangkok increased by 0.2%q% q-o-q and 1.4%y% y-o-ytoy to 7.56 million sq.m. Š Total net take-up in1Q08 grew by 35% q-o-q and 61.5% y-o-y to 48,991 sq.m. Š Occupancy rate in 1Q08 rose slightly to 88.1% with rising occupancy rate in both CBD and non-CBD. Š Demand for CBD Grade A office remained strong with occupancy rate of 92.3%. Š Grade A office rent rose by 0.9% q-o-q and 1.8% y-o-y to 672 Baht per sq.m. Grade B office rent rose by 0.5% q-o-q and 4.8% y-o-y to 506 Baht per sq.m. Š New office space of 226,000 sq.m. is expected to be completed in 2008 and another 241,300 sq.m. is expected to be completed in 2009.

Source: CB Richard Ellis 10 MBK Center

Š Total Area: 270,802.75 sq.m. Š Rental Space: ƒ Shoppi ng C ent er 142,762.86 sq.m. ƒ Office 23,330.07 sq.m. Š Average occupancy rate of 97-99% with long term lease (more than 3 years) accounting for 15% of the tenant Š Average rental rate of 1,383 Baht/sq.m./month Š Average traffic of 90,000 visitors ppyer day durin g weekday s and 110,000 visitors per day during weekend with foreign visitors accounting for 23% of total visitors Š Target to increase foreign visitor ratio to 30% within 3 years Š Average spending per customer: ƒ Thai 1,600 Baht ƒ Foreign 3,000-5,000 Baht Š Renewed contract with Chulalongkorn University for another 20 years starting from 2013 until 2033 Š Invest 450 MB in renovating Patumwan Princess Hotel room

11 Retail Business Expansion : Rama 9

Š Land Bank 14 rais of land on Rama 9 from Premier Shopping Complex Š Plan to developpqyg a boutique style neighborhood or community mall on 10 rais of land Š Target Clients: B+ consumers Š Plan to develop a residential project on 4 rais of land Š Currently in the process of developing a master plan Š Expect to start the construction of the retail project by the end of the year and compltlete b y th e end of next year ( 2009).

Source: Krung Thai Bank Research 12 Siam Piwat Siam Center Š Shopping Plaza Š RtlRental space: 19,000 sq.m.

Siam Discovery Š Shopping Plaza Š Rental space: 25,000 sq.m.

Siam Tower Š Office Building Š Rental space: 31,500 sq.m.

Siam Car Park Š Parking lot Š Parking space: 2,000 cars

Note: Siam Piwat is an Associated Company of MBK 13

Š Joint venture between Siam Piwat and The Mall Group (50:50) Š Space: ƒ Retail Shop 54,000 sq.m. ƒ Department Store 75,000 sq.m. ƒ Paragon Cineplex 18,000 sq.m. ƒ Edutainment & Healthy 11,000 sq.m. ƒ Aquarium 10,000 sq. m. ƒ Paragon Hall 8,500 sq.m.

Note: Siam Piwat is an Associated Company of MBK 14 Hotel & Tourism Industry Overview: Thailand

Tourist Arrival Š International tourist arrival: 90 83.23 79.53 81.49 ƒ The number of international tourist arrivals in 80 74.80 69.36 1Q08 were 4.18 million, an increase of 70 13.6% y-o-y. 60

50 ƒ The number of international tourist arrivals at 40 Suvanabhumi Airport during 1H08 were 5.62

Million people 30 million, an increase of 14.4%y% y-o-y.

20 13.82 14.46 10.00 11.65 11.52 ƒ TAT targets international tourist arrivals of 10 15.48 million in 2008 and 16.00 million in 0 2003 2004 2005 2006 2007 2009. International tourists Thai tourists Š Domestic tourism by Thai tourist Avg per Capita Spending & Length of stay ƒ In 2009, TAT targets 87 million Thai tourists. 4,500 10 4,058 4,048 4,121 Š In 2008, TAT targets tourism revenue of 600 3,890 4, 000 3, 775 9199.19 8.62 8 billion ba ht w it h domest ic tour ist contr ibut ing 385 8.19 8.13 8.20 3,500 billion baht. 6 3,000 Š In 2009, TAT targets tourism revenue of 630 Days

ht per Day ht per 2,500 4 aa billion bath with domestic tourist contributing 407 B 1,824 1,852 2,000 1,769 1,795 1,767 billion baht. TAT forecasts spending of 39,375 2.61 2.60 2.73 2.65 2.63 2 1,500 Baht per person per trip.

1,000 0 Š TAT continues to promote Thailand as an 2003 2004 2005 2006 2007 Avg spending - International Avg spending - Thai alterna tive des tina tion to Singapore an d Hong Avg length of stay - International Avg length of stay -Thai Kong in the MICE market. Source: Tourism Authority of Thailand, Bank of Thailand, CB Richard Ellis 16 Industry Overview: Bangkok

Tourist Arrival Avg per Capita Spending & Length of stay 30 4,500 3.76 4 24.33 25 23.80 3,987 4,038 3.66 22.57 3.73 3.533.56 4,000 3,765 21.09 3.46 3.44 2.89 3,791 3,742 2942.94 19. 52 3.26 3 20 3,500 3,212 3,248 2,954 2,924 2,867 15 3,000 11.70 12.27 12.37 11.63 2 9.78 2,500 Days Baht/Day

Million people 10 2,000 1 5 1,500

0 1,000 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 International tourists Thai tourists Avg spending - International Avg spending - Thai Avg length of stay - International Avg length of stay -Thai Š In 1Q08, there were 76 hotels with the total of 24,080 rooms in downtown area, which estimated to accounted for 40% of total supply in Bangkok Š The supply consisted of 14.7% luxury rooms, 20.4% first-class rooms, 51.2% mid-range and 13.7% economy. Š Majority of hotels in downtown area located in Ploenchit/Sukhumvit (58.6%), Silom/Sathorn (23.1%) and Riverside (18.2%) area. Š Over 7,000 htlhotel rooms or approx ima tltely 30%f% of current supply are expected by the end of 2010.

Source: Tourism Authority of Thailand, CB Richard Ellis 17 Industry Overview: Bangkok

Number of Room & Avg Occupancy Rate

70,000 80% 60,924 58,804 60,593 58,718 70% 60, 000 54,904 69.71% 67.63% 67.96% 60% 50,000 63.14% 56.45% 50% 40,000 40% ooms

RR 30, 000 30% 20,000 20%

10,000 10%

0 0% 2003 2004 2005 2006 2007 Number of Room Avg Occupancy Rate

Š Average occupancy rate of upscale (first-class & luxury) hotels in Bangkok was 76% in 1Q08, an increase of 1% q-o-q and 2% y-o-y. This was due to greater tourist arrivals including an increase in the number of group tours from other Asian and Middle East countries. Š In 1Q08, the average room rate (ADR) of Bangkok upscale hotels increase by 10.9% q-o-q and 16.9%y% y-o-ytoUSDy to USD 194, equivalent to an increase of 5.6%q% q-o-qandq and 6.1%y% y-o-ytoy to 6,259 Baht. Š Revenue per available room (RevPar) of Bangkok upscale hotels increased by 12.2% q-o-q and 19.5%y% y-o-ytoUSDy to USD 147.

Source: Tourism Authority of Thailand, CB Richard Ellis 18 Pathumwan Princess

Š Leading 4 star hotel in the heart of Bangkok Š A member of Dusit International Š 462 rooms including ƒ 307 Superior rooms ƒ 80 Deluxe rooms ƒ 58 ExecuPlus Suite ƒ 2 Grand ExecuPlus Suite Š Variety of international restaurant Š The Olympic Club with over 1,200 members Š Tantara Health Spa Š Historical average occupancy rate of 85% Š In process of renovating all 462 guestrooms. This 450 MB renovation project is expected to be completed by the end of 2009.

19 Royal Orchid Sheraton

Š Luxury riverfront hotel Š OtbStdittilhtlhiOperate by Starwood, an international hotel chain Š 734 rooms including Executive Suites, Towers rooms and The Royal Orchid Suite Š 21 function spaces with the StarMeeting Concierge team Š The Royal Orchid Mandara Spa, a member of the Starwood Spa Collection

Š Ranked 36 among the Top 50 World’s Best Hotels in Asia 2008 by Travel & Leisure Magazine Š Named to the Condé Nast Traveler's Gold List in 2008 for the eighth consecutive year

20 Industry Overview: Krabi

Tourist Arrival Avg per Capita Spending & Length of stay 1.4 4,000 6 5.04 1.19 4.93 3,502 4.84 1.2 3,500 5 1001.00 4784.78 1.0 0.94 0.94 3,000 2,886 2,861 2,919 4 0.86 3.62 3.57 3.95 0.79 0.79 0.8 0.76 2,438 2,4322,502 2,500 2.93 3 0.65 2,270 2,314 2.98 Days 2,073 2.89 0.6 Baht per Day per Baht illion people 2,000 2 MM 0.37 0.4 1,500 1 0.2 1,000 0 0.0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Avg spending - International Avg spending - Thai International tourists Thai tourists Avg length of stay - International Avg length of stay -Thai Number of Room & Avg Occupancy Rate Š Positive impact from the expansion of Krabi 14,000 70% airport to support large commercial planes 12,442 Š The opening of Hong Kong-Krabi route by 12,000 10,962 57.80%60% 10,150 9,737 China Rich Airways and Krabi route by low 10,000 9,088 52.24% 50% 47.54% cost airline further increase the number of 8,000 43.94% 40% tourist arrivals ooms RR 6,000 30% Š More opening of international managed hotel 25.88% 4,000 20% chains in Krabi during the next 2-3 years will

2,000 10% intensify the competition

0 0% Š TAT plans to cooperate with Japanese 2003 2004 2005 2006 2007 investors to open Spring Spa resorts in Number of Room Avg Occupancy Rate various targeted destination including Krabi.

Source: Tourism Authority of Thailand 21 Sheraton Krabi Beach Resort

Š 5 star luxury beachfront resort Š Operate by Starwood, an international hotel chain Š 246 rooms including ƒ 140 Superior rooms ƒ 70 Deluxe rooms ƒ 30 Zen rooms ƒ 6 Executive Suites Š Mandara Spa, a member of Starwood Spa Collection

Š Strategic movement to Meeting Incentive Conventions and Exhibitions (“MICE”) market

22 Industry Overview: Ranong

Tourist Arrival Avg per Capita Spending & Length of stay 0.5 1,800 1,748 3 1,700 0.39 1,672 0.4 1,657 0.36 0.35 2152.15 2172.17 222.2 15921,592 0.32 0.32 1,600 2.05 2.06 0.3 1,495 1,498 2.21 2 1,439 1,443 1,422 1.72 1.8 0.2 1,400 Days Million people ht per Day per ht 1.39 aa 1.35

B 1 0.1 1,200 0.032 0.021 0.019 0.021 0.030 0.0 2003 2004 2005 2006 2007 1,000 0 International tourists Thai tourists 2003 2004 2005 2006 2007 Number of Room & Avg Occupancy Rate Avg spending - International Avg spending - Thai Avg length of stay - International Avg length of stay -Thai 1,500 35% 31.89% 31.29% 29.54% 29.43% 30.82%30% 1,250 1,155 1, 105 1,051 1,073 Š Ranong 1,028 25% 1,000 ƒ There is a potential for the province to 20% 750 develop into health tourism destination

Rooms 15% ƒ TAT plans to cooperate with Japanese 500 10% investors to open Spring Spa resorts in 250 5% various targeted destination including

0 0% Ranong. 2003 2004 2005 2006 2007 Number of Room Avg Occupancy Rate

Source: Tourism Authority of Thailand 23 Tinidee Hotel @ Ranong

Š Formerly named Royal Princess Ranong Hotel Š 4 star hotel with its own Health Spa Š Manage by MBK Group Š 138 rooms and suites including ƒ 82 Superior rooms ƒ 34 Deluxe rooms ƒ 20 Corner Suites ƒ 4 Tinidee Suites

Š Original Brand for 3-4 star hotels in MBK Group

24 Hotel Business Expansion : Samui

Tourist Arrival Avg per Capita Spending & Length of stay 1.0 3,500 6 0.90 0.86 0.87 3,022 3,072 3,054 0.78 2,927 5 0.8 3,000 2,918 4.91 4.82 0680.68 4524.52 4.58 4574.57 4 0.6 2,500 2,359 2,413 2,283 2,244 2,205 3

2.84 Days 0.4 2,000 2.61 2.61 2.52 Million people Baht per Day per Baht 2.47 2

0.2 0.162 0.162 0.162 0.158 0.161 1,500 1

0.0 1,000 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 International tourists Thai tourists Avg spending - International Avg spending - Thai Avg length of stay - International Avg length of stay -Thai Number of Room & Avg Occupancy Rate

25,000 80% Š There were 1.5 million tourists visited Samui in 2007, 21,971 68.29% 85% of these were foreigners. 19,988 66.42% 70% 20,000 64.23% Š The openi ng of th e new passenger termi na l a t Samu i 62.04% 60% 55.01% Airport has increased its daily capacity to 16,000 15,000 14,405 50% 12,769 13,290 passengers, more than 4 times its previous level. 40% Š Bangkok Airway’s expansion has improved the Rooms 10, 000 30% is lan d’s access ibility. It curren tly opera te da ily direc t 20% flights to Hong Kong, Singapore and Bangkok. 5,000 10% Š Thai Airway has launched direct flight services from

0 0% Bangkok to Samui. Two airlines from Malaysian 2003 2004 2005 2006 2007 (Jaya and Firefly) also offer flights from Kaula Number of Room Avg Occupancy Rate Lumpur Source: Tourism Authority of Thailand, CB Richard Ellis 25 Hotel Business Expansion : Samui

Š Samui Hotel: ƒ The arrival of international hotel brands such as W, Conrad, Four Seasons and Park Hyatt is adding credibility to the island. ƒ According to CB Richard Ellis, hotel in resort destinations including Samui, outperformed theirs peers in Bangkok

Š MBK Expansion Plan: ƒ 150 rais of land in Bophut, Samui ƒ Plan to develop luxury resort targeting international tourists ƒ Plan to develop part of the land as residential project ƒ In process of developing Master plan ƒ Segregate the investment into phases. Phase 1 will begin next year. ƒ Expected total investment period of 5 years.

Source: CB Richard Ellis 26 Hotel Business Expansion : Pattaya

Tourist Arrival Avg per Capita Spending & Length of stay 5 4.48 3,500 5 3,173 4.09 3,087 4 3,012 2,960 3,017 3.53 3,000 4 3333.33 3.93 3.85 2,661 3.89 3.62 3.48 3 2.79 2,484 2,500 2,321 2,323 3 2.2 2.36 2.40 2,228 2.03 2.16 2 1.8 Days 1.68 2,000 2.31 2 Million people 1.46 2.3 Baht per Day Baht per

1 1,500 1

0 1,000 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 ItInternati onal lt touri itsts Thai t ouri st s Avg spending - International Avg spending - Thai Number of Room & Avg Occupancy Rate Avg length of stay - International Avg length of stay -Thai

40,000 37,595 38,085 70% Š There were 6.2 million tourists visited Pattaya 34,007 58.09% 57.15% in 2007, 70% of these were foreigners. 62. 30% 60% 57.78% 30,000 57.48% 26,503 50% Š The largest tourism groups came from Russia, 25,349 South Korea and China. 40% 20,000 Š The number of tourists visiting Pattaya still on

Rooms 30% an upward trend. 20% 10,000 Š The opening of Suvanabhumi Airport has made 10% Pattaya more accessible.

0 0% Š The growth in number of hotels managed by 2003 2004 2005 2006 2007 international chain will help to promote Pattaya Number of Room Avg Occupancy Rate as the destination.

Source: Tourism Authority of Thailand, CB Richard Ellis 27 Hotel Business Expansion : Pattaya

Š Pattaya Hotel: ƒ Majjyority of hotels are mid-class and economy hotels, which accounted for 70% of the total hotel stock in Pattaya, with the room rates below 1,500 Baht per night ƒ There were 6,500 hotel rooms at the end of June 2007, increased by 4% from the beginning of 2007. The rate was over 2,500 Baht per night. ƒ Only 4 hotels with the total of 1,300 rooms which are classified as luxury with the room rate over 5,000 Baht per night and accounted for only 3% of the total supply.

Š MBK Expansion Plan: ƒ Acquired 18 rais of land in Pattaya ƒ Plan to develop new hotel and shopping project ƒ In process of designing Master plan ƒ Expect to start construction when the lease contract with the current hotel (Montien Hotel Pattaya) expires in 2013.

Source: CB Richard Ellis 28 Hotel Business Expansion : Phuket

Tourist Arrival Avg per Capita Spending & Length of stay 4.0 5,500 6 3.50 5.44 3.5 3.28 5.29 5.57 5,000 5.20 2.88 4,552 5 3.0 2.75 45004,500 4,343 4,044 4,007 2.5 3,827 4,000 3.89 4 3.82 3.89 2.0 1.72 3,500 3.07 2.96 1.62 3 3.19 2,935 1.5 1.30 1.30 1.32 3,000 2,775 2,758 Days Million People 1.19 2,646

aht per Day 2,520

1.0 BB 25002,500 2

0.5 2,000 1 0.0 1,500 2003 2004 2005 2006 2007 1,000 0 International tourists Thai tourists 2003 2004 2005 2006 2007 Avg spending - International Avg spending - Thai Number of Room & Avg Occupancy Rate Avg length of stay - International Avg length of stay -Thai 45,000 80%

40,000 37,543 70% 34, 297 35,000 Š In 2007, there were 5 million tour is ts v is ite d 31,302 32,076 31,488 65.82% 60% 60.69% 30,000 65.47% Phuket in 2007. Phuket’s international tourist 57.40% 50% 25,000 arrivals represented approximately 22.68% of 40% 20,000 Thailand’s total international tourist arrivals. Rooms 34.60% 30% 15,000 Š Total tourist arrival in Phuket is expect to reach 20% 10,000 5.6 million generating approximately 110,000 5,000 10% MB of tourism revenue. 0 0% 2003 2004 2005 2006 2007 Number of Room Avg Occupancy Rate

Source: Tourism Authority of Thailand, CB Richard Ellis 29 Hotel Business Expansion : Phuket

Š Phuket Hotel: ƒ Majority of hotel rooms in Phuket are mid-range. First-clhllass hotel accounte d for 37% of the total supply. ƒ Luxury hotels accounted for 4% of the total upscale hotel supply. ƒ There are no upscale hotels in Phuket town or inland areas. 8% of upscale hotels locate on the East Coast with another 91% locate on the West Coast. ƒ 10 luxury hotels with over 800 rooms and 2,100 first class as well as 1,300 mid-range will be completed by 2010.

Š MBK Expansion Plan: ƒ Plan to develop a hotel with 70 villas and 60 pool villas within the Red Mountain Golf Course area.

Source: CB Richard Ellis 30 MBK Leisure

Š is a trade mark for MBK Tourism Business and are operate by

ƒ Absolute Travel Co., Ltd ƒ MBK Leisure Co., Ltd

Š Rendering the following services ƒ Ticketing agents ƒ Hotel reservation ƒ Car rental ƒ Cruise ƒ Package tour arrangement for outbound (international) and inbound (domestic) as well as FIT (individual programs)

31 Golf Industry Overview : Golf

Golf Course in Thailand 245 6% 5.5% 242 240 239 5% 235 232 3.8% 4% Š There are approximately 242 golf 230 courses in Thailand 225 3.0% 3% Growth Golf Course 220 Š In 2008, intense competition is ff

220 %% 2% expected due to the construction of

No. o No. 215 1.3% new golf courses in China & 1% 210 Vietnam 205 0% Š Tha ilan d is s till a favor ite go lf 2004 2005 2006 2007 No. of Course % Growth destination for tourists from Japan, Taiwan and Singapore 2005 2006 2007 2008 e Š Lower number of tourism golfers is Market Value 3,674 4,256 4,483 4,750 expected due to global economic % Change +11.1 +15.8 +5.3 +5.9 slowdown.

Š Currently, there are 6 golf courses in Phuket Š Each year, approximately 250,000 tourists out of the total arrivals of 5 million comes to Phuket to play golf. These people has estimated average spending of 4,000 Baht per capita per day generating approximately 1, 000 – 2, 000 MB revenue per annum

Source: Krung Thai Bank Research 33 Business Information

Golf Business is operated by MBK Resort Plc.

The Loch Palm Course ((yformerly known as Loch Palm Golf Club)

ƒ Standard 18 - holes golf course (par 72) ƒ Locate on 500 rais of land (approximately 200 acres) in Kratu, Phuket

The Red Mountain Course

ƒ Standard 18 -holes golf course (par 72) ƒ Locate on 600 rais of land (approximately 240 acres) just northeast to the Loch Palm Course in KtKratu, Ph Phktuket ƒ Voted as 1 of the top 3 golf course in Asia

34 Golf Business Expansion

Š Patumthani: ƒ The oppgening of Suvanabhumi air port is ex pected to boost the number international golf players for golf course within convenience distance from the airport

Š MBK Expansion Plan: ƒ Located on 900 rais of land in Patumthani ƒ The construction of a new standard 18 – holes golf course is expected to be completed in 2009 ƒ Plan to develop a new residential projects around the golf course under management of Plan Properties Co., Ltd.

35 Real Estate Development Industry Overview: Phuket

Š There is sustained interest in the Thai resort properties market Š The development of infrastructure including marinas, golf course as well as international standard schools and hospitals make Phuket the premiere regional resort d es tina tion. Š Land prices continue to rise with land price achieved 40 MB per rai in Karon and Kata, and 100-200 MB per rai on Patong despite uncertainty regarding the Foreign Business Act . Š Demand is expected to remain strong in the future since Phuket property is much cheaper than comparable property in the Caribbean, Mediterranean or off the Hawaiian coast.

Supply of Residential Unit in Phuket Š Increasing supply of branded residences

175,000 is expected including Shangri-La Villas in 150,500 143,300 Bangtao, Park Hyatt and Capella in 150,000 136, 445 128,110 Emerald ldBDit&RfflRid Bay, Dusit & Raffles Residences 125,000 in Phang Nga and Four Seasons in Rawai 100,000

75,000 2005 2006 2007 2008

50,000 Forecasted 43,500 46,500 49,300 52,200 25,000 Market Value

0 % Change +8.8 +6.9 +6.0 +5.9 2005 2006 2007E 2008E

Source: CB Richard Ellis, Krung Thai Bank Research 37 Business Information

Real Estate Development Business is operated by Plan Estate Co., Ltd. and the Joint Venture under the name Crystal Lake Properties Co., Ltd. Development of Lands for Sale Property Management

ƒ Baan Suan Rim Had Cha-am, Petchburi • Manage properties for sale of financial • 36 ppplots of residential development institutions • 100% sold out • Improvement and reparation of properties services ƒ Baan Suan Loch Palm, Phuket • 60 plots of residential development on 38 Building & Community Management rais of land next to the Loch Palm Course • Leased office building management • 75% sold (as of 30 June 2008) • Community or village management

Advisory & Appraisal

• Advisory services • Project analysis • AtltiAsset valuation appra ilisal

38 Business Information

Crystal Lake Properties Co., Ltd. Project Project Units Progress Details Value Courtyard 10 90 MB Sold out Sold 90 years Home lease to foreigners. 50% lump sum payment and 50% installment over 10 years.

Garden 37 350 MB 75% sold Constructions is Villa completed in May 2007.

New 6 75 MB 85% sold Construction is Townhouse completed in July 2007.

Lake Front 5 50 MB Sold out Sold land plots.

39 Real Estate Business Expansion

Š Phuket: ƒ Plan to develop a new residential project “Tropical Garden” along with a community mall for the convenience of the residences in the Red Mountain Golf Course area. ƒ Plan to develop a luxury residential project consisting of 100 units at price range of 12 MB to 40-50 MB in the Loch Palm Golf Course area. Š Patumthani: ƒ Located on 900 rais of land in Patumthani ƒ Plan to develop a new 500 units residential project (next to the new golf course) under management of Plan Properties Co., Ltd. Supply of Residential Unit in Bangkok & Vicinity Area

68,052 70,000 63,052 62,584 2005 2006 2007 2008 59,455 60,000 52,833

Forecasted 107,805 83,723 75,304 79,350 50,000

Market Value 40,000

% Change -30.0 -22.3 -10.1 5.4 30,000

20,000 ƒ More demand for residential property in a 10,000 ppceageorice range of 1-5 MB is e x pect ed 0 2003 2004 2005 2006 2007E

Source: Krung Thai Bank Research 40 Rice Industry Overview

Milled Rice Production & Consumption (million tons)

World Thailand 424 450 408 418 415 418 419 421 20 18. 2 18. 3 18. 6 400 17.4 400 18 350 16 300 14 12 250 959.5 959.5 9.9 969.6 10 200 8 150 6 100 4 50 2 0 0 2004/05 2005/06 2006/07 2007/08e 2004/05 2005/06 2006/07 2007/08e Milled Production Consumption

Š Tha i r ice pro duc tion s till s how a r is ing tren d bu t a t hig her pro duc tion cos t. Š Most Thai rice fields locate outside irrigation area. Š There are 39,834 rice mills registered with Ministry of Industry as at the end of 2006 but only 2,000 are in production Š Domestic market is accounted for 60% of the rice mills and rice trading business. Š There is a demand for jasmine rice in Chinese market and demand for organic rice in European market. Š World demand for rice is expected to rise while stock is showing a declined trend.

Source: United State Department of Agriculture, Kasikorn Research, Krung Thai Bank research 42 Industry Overview

Rice Product Export 2007

Japan 20% Others Outlook 2008 36% Š Domestic market is expected to grow at the same rate as last year. USA 13% Š Export looks optimistic since agriculture area of large food MlMalaysi a production countries is suffered Netherland Australia Hong Kong 11% from natural disaster generating 5% 6% 9% demand to import rice product from Thailand. Š During Jan-April 2008, rice 2005 2006 2007 2008E production export grew by 12.0% y-o-y Expp()ort (MB) 5,794 6,104 5,442 6,050

% Change +0.7 +5.4 -10.8 +11.2

Source: Krung Thai Bank research 43 Business Information

Rice Business is operated by Patum Rice Mill and Granary Public Co., Ltd. Š Production Capacity By Products ƒ Milling : 320,000 tons per year ƒ Small broken rice, bran oil, bran extract and ƒ Packaging : 275,000 tons per year husk ashes Rice Products Domestic Š distributed by products to Market relevant industries Domestic Š rice packed in 5 kg or 2 kg Export Š export small broken rice through Market plastic bags for domestic exporter distribution under the brand Š directly export bran oil Mahboonkrong Rice, Patta & Š directly wholly export husk ashes Jasmine Gold Š Rice mixed with variety of ƒ Power: generate electricity from rice husk for vegggetable and grains under the sale to the Electricity Generating Authority of brand “Mahboonkrong Plus” Thailand (EGAT) with production capacity of 9.24 Mega Watt Export Š execute export by agreement only

Flour Products

ƒ Glutinous rice flour, non-glutinous rice flour, jasmine rice flour and crispy jasmine rice flour

44 Financial Highlight Balance Sheet

25,000

21,101

20, 000

16,924 16,161 16,537

15,000

MB 10,636 10,465 9,750 10,000 9,209 8,528 7,633 7,715 6,788

5,000

0 FY04/05 FY05/06 FY06/07 FY07/08 Assets Liabilities Shareholders' Equity Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 CAGR Asset -0.67% 4.72% -2.29% 27.60% 6.90% Liabilities -3.70% 1.08% -12.02% 56.70% 8.65% Shareholders’ Equity 2.21% 7.99% 5.87% 7.34% 5.25%

46 Capital Structure

12,000 1.20 10,636

10,000 1.02 1.00 0900.90 0.84 8,000 7,633 7,715 0.80 6,788 0.70 0.58 6, 101 6,000 0.60 (X) MB

0.43 4,000 3,700 0.40 0.30 2,751 0.21 2,036 2,000 0.20

0 0.00 FY04/05 FY05/06 FY06/07 FY07/08 Liabilities Interest Bearing Debt D/E Interest Bearing Debt to Equity Ratio FY04/05 FY05/06 FY06/07 FY07/08 D/E 0.90 0.84 0.70 1.02 Interest Bearing Debt to Equity (X) 0.43 0.30 0.21 0.58 Interest Bearing Debt to Liabilities (X) 0.48 0.36 0.30 0.57 Interest Coverage (X) 16.48 15.01 19.62 14.59

47 Income Statement

7,000 6,282 5,899 6,000 5,800 52425,242 5,220 5,000 4,571 4,630

3,941 40004,000 MB 3,000

2,181 1,916 2,000 1,749 1,552 1,402 1,177 1,286 1,002 1,000

0 FY04/05 FY05/06 FY06/07 FY07/08 Revenue Sale EBIT Net Profit Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 CAGR Total Revenue -0.44% 14.70% 12.52% 6.50% 8.27% Sale 0.47% 17.48% 12.74% 11.11% 10.14% EBIT 2.72% 12.72% 9.53% 13.81% 8.88%

48 Expense

4,500 4,102 3,983 4,000 3, 493 3,500 3,360 3,153 3,019 3,000 2,852

2, 455 2,500 MB 2,000

1,500

1,000

500

0 FY04/05 FY05/06 FY06/07 FY07/08 Total Expense Cost of Sale

Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 Total Expense -2.00% 15.71% 14.09% 2.99% Cost of Sale 7.84% 16.19% 10.57% 6.55%

49 Revenue Breakdown

7,000 6,282 5,899 3% 6,000 4% 4% 7% 5,242 Share of Profit 9% 5% 3% 5,000 4,571 5% 10% Others 4% 1% 32% 4,000 10% 1% 31% Real Estate 33% 5% MB 31% 3% Rice 3,000 2% 2% 18% 1% Golf 17% 17% 17% 2, 000 337 Hotel

1,000 32% 36% 34% 32% Shopping Plaza

0 FY04/05 FY05/06 FY06/07 FY07/08 FY06/07 FY07/08 % Y-o-Y Shopping Plaza 1,848 2,030 9.83% Hotel 1,003 1,105 10.21% Golf 122 171 40.58% Rice 1,818 2,011 10.60% Real Estate 307 337 9.51% Others 545 463 -15.14% Share of Profit 255 166 -34.94% Total 5,899 6,282 6.50%

50 EBIT Breakdown

2,500 2,181 Share of Profit 2,250 8% 1,916 Others 2,000 1, 749 13% 14% 1,750 1,552 Real Estate 8% 3% 7% 1,500 12% 20% 23% Rice 16% 1,250 28% 2% 2% 1% Golf 1% 8%

MB 10% 1,000 1% 10% Hotel 750 Shopping 54% 52% 500 56% Plaza 53% 250

0 4% FY04/05 FY05/06 FY06/07 FY07/08 -250 FY06/07 FY07/08 % Y-o-Y Shopping Plaza 1,052 1,144 8.71% Hotel 164 346 111. 53% Golf 25 9 -65.41% Rice 3 157 5582.53% Real Estate 40 71 76.27% Others 395 307 -22.28% Share o f P rofit 255 166 -34. 94% Total 1,916 2,181 13.81%

51 Profitability

3,000 42.07% 45% 39.59% 37.72% 38.40% 40% 2,500 2,440 35% 2,181 2,066 2,000 1,916 30% 1,778 1,749 1,552 22.31% 25% 1, 486 21. 91% 22. 46% 21. 80% 1,500 1,402 MB 1,286 20% 1,177 1,002 1,000 15%

10% 500 5%

0 0% FY04/05 FY05/06 FY06/07 FY07/08 Gross Profit Operating Profit Net Profit GPM NPM Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 CAGR Gross Profit -9.72% 19.61% 16.24% 18.06% 13.20% Operating Profit 2.72% 12.72% 9.37% 13.81% 8.88% Net Profit -4.37% 17.53% 8.95% 9.03% 8.76% ROA 6.18% 7.12% 7.67% 7.45% ROE 11.87% 13.27% 13.56% 13.87% 52 Stock Performance MBK Stock Performance

180

160 MBK Š Listed on the Stock Exchange of Thailand 140 siAilince April 24, 1996 SET 120 Š Sector: Property &

100 Construction / Property Development PROPERTY 80 Š Registered and fully 60 paid-up capital of 1,886.291 MB 40 Š Par Value: 10.00 Baht 20 since listed 0 Š IPO Price: 48.00 Baht -08 -04 -05 -06 -07 -08 -04 -04 -05 -05 -05 -06 -06 -06 -07 -07 -07 -08 -04 rr rr rr rr rr Jul Jul Jul Jul Jul Oct Oct Oct Oct Ap Ap Ap Ap Ap Jan Jan Jan Jan Jan

2004 2005 2006 2007 8M 2008 Price (Baht) 48.00 44.50 57.50 70.00 68.50 P/E 9499.49 8308.30 9709.70 9629.62 8958.95 P/BV 1.05 1.02 1.13 1.29 1.20 Market Cap (MB) 9,600 8,900 10,846 13,204 12,921 Avg. Daily Trading Value (MB) 3.48 2.83 6.34 6.03 2.28 Turnover Ratio (%) 8998.99 7357.35 16. 99 19. 43 4214.21

54 Dividend Payments

10 8.00% 9.26 9 8.49 6.63% 6.74% 7.00% 8 7777.77 6.44% 6.00% 7 6.62 5.36% 5.00% 6

5 4.00% % Baht 3.75 4 3503.50 3.25 3.00% 3 2.00* 2.00% 2 1.00% 1

0 0.00% FY04/05 FY05/06 FY 06/07 FY 07/08 Earning per Share Dividend per Share Dividend Yield

FY04/05 FY05/06 FY06/07 FY07/08

Book Value per Share 56.33 60.82 64.39 69.11

* Interim Payment Only 55 Con tact: Q&AQ & A Ms. Dararat Homrossukhon E-mail: [email protected] TTl(el: (66) 2620-7120

56