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May 3, 2019 OUTPERFORM True Corporation (TRUE TB) Share Price: Bt5.1 Target Price: Bt6.0 (+17.6%) Worst-case scenario priced-in Company Update Company TRUE offers a turnaround story on both performance and financial status, which have not been priced-in. We expect TRUE to turn

profitable in 2019 after multi-year losses, driven by smaller loss from handset subsidy of Bt4bn (in line with peers) vs Bt10bn in 2018. Its

financials will turnaround after accepting the NBTC’s offer, which means the company would not need to make a cash call. Reiterate Phatipak NAVAWATANA Outperform with DCF-based TP of Bt6. 662 - 659 7000 ext 5003 [email protected] Expect 1Q19 to turn profitable We expect Bt160mn core profit for 1Q19F, turning around from Bt387mn Key Data loss in 1Q18 and Bt3bn loss in 4Q18. This would be mainly led by 12 -mth High/Low (Bt) 8.05 / 4.50 smaller loss from handset subsidy after adopting IFRS 15 this year. It is Market Cap (Btm/US$m) 170,178 / 5,314 estimated to drop to Bt800mn in 1Q19 vs Bt2.5bn (past 3-year average) 3m Avg. Turnover (Btm/US$m ) 533.7 / 16.7 because under IFRS 15, handset subsidy is recognized as it is incurred. Free Float (%) 78.7 Issued Shares (m shares) 33,368 COMPANY RESEARCH | RESEARCH COMPANY Previously, TRUE would capitalize and amortize the expense over the subsidy period. We also expect group revenue to grow at a slower pace Major Shareholders: of 4% YoY and 2% QoQ, driven by all business units including mobile, - GRO 18.3 fixed broadband and TV. 1Q19F earnings accounts for 10% of our full- - INTERNA 18.0 - UBS AG/HONG KONG 9.0 year estimate of Bt1.6bn profit, turning around from Bt4.3bn core loss in 2018 because of smaller handset subsidies. Share Price Performance

Accepting NBTC’s offer would allow TRUE to avoid cash call We reiterate our view that TRUE will accept the NBTC’s offer to stretch payment for 900MHz to 10 years instead of 4 years, in exchange for buying a 700MHz license. Our assumption is that TRUE would get two 15MHz blocks on 700MHz at Bt25bn, payable over 10 years. We also maintain that the generous payment terms for 900MHz and 700MHz means TRUE can avoid a cash call. This would ensure their financial position remains sound with net debt to EBITDA ratio of 3x and net debt to equity of 0.7x compared to 4.5x and 1.1x, respectively, if they reject the offer. They were 4x and 1.2x, respectively, in 2015 (before TRUE sought cash injection in 2016). YTD 1Mth 3Mth 12Mth OUTPERFORM, DCF-based TP of Bt6 Absolute (%) (1.9) 4.9 (1.9) (34.6) Our DCF-based TP assumes TRUE accepts the NBTC’s offer. We do Relative to index (%) (9.3) 2.8 (3.6) (28.9)

not rule out the possibility of more favorable terms for 700MHz including Krungsri Securities vs Market smaller bandwidth and lower price, which would lift our TP. Currently, Positive Neutral Negative most of the adverse impact have been priced-in, including losing the Market lawsuit to TOT for high-speed (ADSL) and cash call risk if they Recommend 14 6 8 need to make a lump sum final payment for 900MHz license in 2020. Krungsri Market % +/ - Hence, accepting the NBTC’s offer would re-rate the stock. Target Price (Bt) 6.0 5.9 2.2 ’1 9 Net Profit (Btm) 1,602 1,400 14.4 Financial Summary (Btm) ’20 Net Profit (Btm) 4,759 2,809 69.4 Year to Dec 2017 2018 2019F 2020F 2021F Sales (Btm) 135,490 136,972 141,663 145,083 148,620 Krungsri's earnings revision Growth (%) 8.6 1.1 3.4 2.4 2.4 EBITDA (Btm) 30,807 33,589 28,102 31,341 33,502 201 9F 2020 F Growth (%) 22.9 9.0 (16.3) 11.5 6.9 Earnings revision (%) - - Recurring profit (Btm) (3,496) (4,365) 1,602 4,759 6,445 Source: Bloomberg, Krungsri Securities Growth (%) nm nm nm 197.1 35.4 Net profit (Btm) 2,323 7,035 1,602 4,759 6,445 FDEPS (Bt) (Core) (0.14) (0.18) 0.07 0.19 0.26 Growth (%) nm nm nm 197.1 35.4 PE (x) nm nm 78.3 26.3 19.5 DPS (Bt) 0.03 0.14 0.03 0.10 0.13 Yield (%) 0.6 2.8 0.6 1.9 2.6 BVPS (Bt) 5.2 9.3 10.4 11.7 12.9 P/BV (x) 1.0 0.0 551.6 0.0 0.0

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 | TRUE May 3, 2019

P/E Band EV/EBITDA Band

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

Peer table Market PE EPS EV/EBITDA Div Yld ROE Share Price Cap (x) (%growth) (x) (%) (%) Performance BB Ticker Name US$ 19 F 20 F 19 F 20 F 19 F 20 F 19 F 19 F 1M 3M 6M YTD Thailand TRUE TB TRUE C ORP PCL 5,314 78.3 26.3 N/A 197.1 10.3 8.9 0.6 35.5 4.9 (1.9) (15.0) (1.9) ADVANC TB PCL 17,685 18.3 17.3 4 3 8.6 8.2 3.8 49.4 2.1 5.8 0.8 10.4 DTAC TB TOTAL ACCESS COMMUNICATION 3,789 19.9 18.9 256 6 6.0 5.7 2.5 29.5 (5.5) 6.2 6.2 18.5 INTUCH TB INTOUCH HOLDINGS PCL 5,932 15.3 14.5 8 5 23.0 22.5 4.6 36.8 1.7 9.2 13.9 24.1 THCOM TB THAICOM PCL 221 15.5 16.4 98 (5) 2.5 2.7 4.3 3.4 (9.8) (20.4) (23.2) 6.6 Average (si mple) 29.4 18.7 120.7 41.6 10.1 9.6 3.2 30.9 Regional VOC AU VOCUS GROUP LTD 1,730 23.7 21.8 70 9 9.9 9.4 0.1 4.0 10.3 20.7 16.1 23.8 728 HK CORP LTD -H 41,786 12.6 11.7 6 8 3.2 3.1 3.3 6.3 (9.2) (3.8) 7.1 1.3 941 HK CHINA MOBILE LTD 193,160 11.0 10.6 1 4 3.0 2.9 4.5 10.9 (5.6) (11.0) (0.1) (1.8) HUTCHISON TELECOMM HONG 215 HK KONG 2,070 42.1 39.6 (5) 6 5.9 5.7 1.8 2.8 3.1 9.8 16.2 15.4 762 HK HONG KONG LTD 35,965 17.7 13.0 36 36 2.7 2.5 2.3 4.3 (8.7) 2.1 8.0 10.3 ISAT IJ INDOSAT TBK PT 958 N/A N/A (7) (23) 4.8 4.3 1.1 (22.5) 7.7 (14.0) 6.8 49.0 TLKM IJ TELEKOMUNIKASI INDONESIA PER 26,649 17.2 15.9 22 9 6.3 5.7 4.2 20.1 (3.0) (1.0) (2.8) 2.1 TOWER BERSAMA TBIG IJ INFRASTRUCTURE 1,178 16.6 14.3 43 16 9.1 8.4 3.9 28.3 (6.6) (25.1) (21.3) 2.8 BHARTI IN LTD 20,371 N/A N/A (160) 219 10.3 9.3 0.8 (1.0) (0.9) 13.2 16.9 13.0 BHIN IN BHARTI INFRATEL LTD 7,215 20.3 19.2 (1) 6 7.3 7.1 4.7 16.7 (14.0) (8.6) 3.3 4.6 IDEA IB IDEA LTD 2,903 N/A N/A 82 (36) 22.9 14.5 0.0 (32.2) (3.8) (12.8) (33.8) (28.6) RCOM IB LTD 71 N/A N/A N/A N/A N/A N/A N/A N/A (52.5) (84.6) (87.3) (87.6) MK AXIATA GROUP BERHAD 8,666 28.2 24.1 (125) 17 6.1 5.9 2.9 6.7 (4.1) (1.5) 15.2 0.5 DIGI MK DIGI.COM BHD 8,342 22.9 22.3 (2) 3 12.7 12.5 4.3 237.4 (3.7) (4.7) 4.0 (1.3) T MK TELEKOM MALAYSIA BHD 2,597 17.4 17.1 300 2 4.7 4.7 2.8 8.1 (9.8) (1.7) 20.2 7.5 GLO PM INC 4,622 12.5 13.0 6 (4) 5.4 5.3 5.1 26.1 (6.4) (13.1) (13.9) (5.3) TEL PM PLDT INC 5,173 11.9 12.7 19 (6) 5.6 5.4 5.2 18.4 9.7 (5.6) (10.8) 10.2 M1 SP M1 LTD N/A 17.2 19.9 (16) (13) N/A N/A N/A N/A N/A N/A N/A N/A SINGAPORE ST SP 38,016 17.1 16.4 (45) 4 12.5 12.8 5.6 10.1 3.3 5.0 (0.3) 8.2 STH SP STARHUB LTD 1,982 14.4 15.6 (4) (7) 6.9 7.0 6.1 60.0 3.3 (14.3) (21.2) (10.9) 030200 KS KT CORP 6,167 9.7 8.6 1 13 2.5 2.4 4.0 5.7 0.7 (3.8) (4.5) (7.7) 032640 KS LG UPLUS CORP 5,568 12.3 11.1 9 11 3.4 3.3 2.9 7.7 (5.1) 0.3 (8.0) (15.9) 017670 KS SK TELECOM 17,440 10.6 8.6 (46) 23 5.7 5.5 4.2 8.1 0.2 (3.3) (2.3) (6.7) 2412 TT CO LTD 27,866 25.0 25.1 (3) (1) 11.0 11.0 4.0 9.1 1.4 3.7 4.7 (1.8) 4904 TT FAR EASTONE TELECOMM CO LTD 8,014 27.1 27 .1 (3) 0 9.9 10.0 4.9 13.5 3.7 6.1 6.3 (0.5) Average (simple) 20.9 17.8 24 18 8.0 7.5 3.4 21.9 Source: Company data, Bloomberg, Krungsri securities

Krungsri Securities Research 2

Company Update | TRUE May 3, 2019

Quarterly P&L (Bt m) 1Q18 2Q18 3Q18 4Q18 1Q19F yoy qoq Sales 33,286 35,198 34,539 33,949 34,466 4% 2% COGS (incl. depreciation) (24,324) (24,726) (25,279) (27,364) (27,123) 12% -1% Gross Profit 8,963 10,472 9,260 6,585 7,343 -18% 12% SG&A (8,673) (8,531) (8,529) (9,550) (6,411) -26% -33% Operating Profit 289 1,941 731 (2,965) 932 222% N/A Net other income/expense 35 72 114 92 100 186% 9% Net interest (1,264) (1,257) (1,187) (1,304) (1,304) 3% 0% Pretax profit (940) 756 (342) (4,177) (272) -71% -93% Income Tax 243 210 0 482 0 -100% -100% Associates 1,020 856 962 952 1,000 -2% 5% Minority interest 23 (2) 4 52 52 129% 0% Profit after tax (pre-ex) (398) (500) (249) (3,218) 160 N/A N/A Extraordinaries, GW & FX 12 10,537 634 218 0 -100% -100% Reported net profit (387) 10,037 385 (3,000) 160 N/A N/A

Shares out (end Q, m) 24,581 24,581 24,581 24,581 24,581 Adjusted shares (m) 24,581 24,581 24,581 24,581 24,581

Pre-ex EPS (0.02) (0.02) (0.01) (0.13) 0.01 N/A N/A EPS (0.02) 0.41 0.02 (0.12) 0.01 N/A N/A

Krungsri Securities Research 3

Company Update | TRUE May 3, 2019

INCOME STATEMENT (Btm) 2017 2018 2019F 2020F 2021F Turnover 135,490 136,972 141,663 145,083 148,620 Cost of sales (COGS) (101,866) (101,693) (107,664) (110,935) (112,398) Depreciation & amoritisation (33,472) (33,593) (25,269) (25,269) (25,269) Gross profit 33,624 35,280 33,999 34,149 36,221 S&A expenses (32,985) (35,283) (31,166) (29,017) (29,724) Operating profit (2,665) (4) 2,833 6,072 8,233 Other operating income 533 313 313 313 313 EBIT (2,132) 309 3,146 6,385 8,546 Interest expense (5,917) (5,012) (5,160) (5,115) (5,250) Interest income 0 0 0 0 0 Other income 0 0 0 0 0 Goodwill amortisation 0 0 0 0 0 Pre-tax profit (8,744) (4,953) (2,264) 1,020 3,046 Income tax on company & subsidiaries 1,316 (935) 0 204 609 Profit after tax (10,060) (8,142) (2,264) 816 2,437 Minority interests 0 0 0 0 0 Share of associate net income 3,154 3,790 3,866 3,943 4,022 Preferred dividends 0 0 0 0 0 Recurring attributable net profit (3,496) (4,365) 1,602 4,759 6,445 FX & Extraordinary items 5,819 10,531 5,098 8,255 9,941 Reported net profit 2,323 7,035 1,602 4,759 6,445 Shares in issue (Y/E, m) 24,581 24,581 24,581 24,581 24,581 Shares in issue (weighted avg, m) 24,581 24,581 24,581 24,581 24,581 EPS (before extraordinary items, Bt) (0.14) (0.18) 0.07 0.19 0.26 DPS (Bt) 0.03 0.14 0.03 0.10 0.13 DPS/EPS (%) NM NM 50.00 50.00 50.00

CASH (Btm) 2017 2018 2019F 2020F 2021F Operating profit (2,665) (4) 2,833 6,072 8,233 Other operating income 533 313 313 313 313 EBIT (2,132) 309 3,146 6,385 8,546 Depreciation & amortisation 33,472 33,593 25,269 25,269 25,269 EBITDA 30,807 33,589 28,102 31,341 33,502 Notional cash taxes on ungeared operations 1,316 (935) 0 204 609 Net change in working capital (3,500) (4,082) (4,664) (5,246) (5,828) CAPEX (48,000) (40,000) (25,000) (20,000) (20,000) Operating free cashflow (OpFCF) (19,377) (11,428) (1,562) 6,299 8,283 Net interest income adjusted for tax impact (5,917) (5,012) (5,160) (5,115) (5,250) Net free cashflow (NetFCF) (25,294) (16,440) (6,722) 1,184 3,033 Non-operating income (net of tax) 0 0 0 0 0 Equity income from associates 3,154 3,790 3,866 3,943 4,022 Investments 0 0 0 0 0 Net change in other assets/liabilities 0 0 0 0 0 Other items 0 0 0 0 0 Residual cashflow (RCF) (22,140) (12,650) (2,856) 5,127 7,055 Dividends (762) (3,518) (801) (2,380) (3,222) Equity capital raised 0 0 0 0 0 Debt payment 14,557 11,441 (5,000) 55,218 (5,000) Cashflow from financing 14,839 9,096 (7,159) 53,628 (7,801)

Net change in cash (31,957) 2,445 (672) 0 0 Net cash/(debt) at YS 0 0 0 0 0 Ending net cash /(debt) (31,957) 2,445 (672) 0 0

Increase/(decrease) in cash & equivalents (31,957) 2,445 (672) 0 0 (Increase)/decrease in debt 14,557 11,441 (5,000) 55,218 (5,000) NOPLAT (net op profit less adjusted tax) (1,349) (939) 2,833 6,276 8,843 Normalised OpFCF (est maint CAPEX) (19,377) (11,428) (1,562) 6,299 8,283 FCFE (free cashflow to equity) (10,737) (4,999) (11,722) 56,402 (1,967)

Krungsri Securities Research 4

Company Update | TRUE May 3, 2019

BALANCE SH EET (Btm) 2017 2018 2019F 2020F 2021F Cash & equivalents 18,227 14,090 8,298 22,463 36,476 A/C receivable 47,704 7,831 7,785 7,969 8,127 Inventory 16,849 2,128 2,009 2,053 2,084 Others 35,032 4,468 4,441 4,547 4,636 Total Current Assets 117,812 28,517 22,533 37,032 51,324 Property and equipment 176,190 57,236 67,051 61,938 56,824 Investments & associates 16,539 303 303 303 303 Other assets 154,770 54,219 50,847 47,476 44,104 Goodwill 0 1 2 3 4 Total As sets 465,311 150,957 151,416 157,430 163,237

Short-term debt 77,530 9,375 9,375 9,375 9,375 A/C payable 115,495 39,899 37,657 38,488 39,074 Other current liabilities 4,778 3,933 (5,466) (5,373) (5,294) Total Current Liabil ities 197,803 53,207 41,567 42,490 43,155 Long-term debt 49,924 37,625 37,625 39,776 41,927 Other liabilities 83,271 38,195 47,570 47,570 47,570 Total Liabilities 330,998 129,027 126,762 129,837 132,652

Share capital 133,473 4,736 4,736 4,736 4,736 Share premium 26,384 1 2 3 4 Revaluation/Warrants/Treasury 0 0 0 0 0 Translation adjustment 0 1 2 3 4 Retained earnings (31,090) (9,031) (6,198) (3,259) (267) Total ordinary equity 127,515 21,929 24, 653 27,592 30,584 Preferred equity 0 0 0 0 0 Minorities 1 1 1 1 1 Total equity & minorities 127,516 21,930 24,653 27,593 30,584

Accumulated depreciation (250,000) (249,500) (249,000) (248,500) (248,000) BV per ordinary share (Y/E, Bt) 5.2 9.3 10.4 11.7 12.9 Adjusted book value ps (Y/E, Bt) 5.2 9.3 10.4 11.7 12.9

RATIOS (%) 2017 2018 2019F 2020F 2021F Growth Turnover 8.6 1.1 3.4 2.4 2.4 EBITDA 22.9 9.0 (16.3) 11.5 6.9 EBIT nm nm nm 102.9 33.8 Net profit nm nm nm 197.1 35.4 EPS pre extraordinary items nm nm nm 197.1 35.4 EPS (diluted) nm nm nm 197.1 35.4 DPS nm 2.6 (1.8) 1.0 (0.6)

Accounting ratios Cash profit margin 24.8 6.7 7.6 7.7 7.7 Gross profit margin 24.8 25.8 24.0 23.5 24.4 Operating profit margin (2.0) (0.0) 2.0 4.2 5.5 Net profit margin 24.8 6.7 7.6 7.7 7.7 Turnover/avg total assets (x) 0.3 0.3 0.3 0.3 0.2 ROA (0.8) (0.9) 0.3 0.8 1.1 ROE (2.7) (3.3) 1.2 3.5 4.6 S&A/turnover 24.3 25.8 22.0 20.0 20.0 Effective tax rate nm nm 20.0 20.0 20.0

Operating performance EBITDA margin 22.7 24.5 19.8 21.6 22.5 EBIT margin (2.0) (0.0) 2.0 4.2 5.5 NOPLAT margin (NOPLAT/Turnover) (2.0) (0.0) 2.0 4.2 5.5 Asset turnover (Turnover/avg Op assets) 0.3 0.3 0.3 0.3 0.2 ROCE (NOPLAT/avg Op assets) (1.1) (0.0) 1.0 2.1 2.3 ROCE inc capitalised goodwill (1.1) (0.0) 1.0 2.1 2.3

Krungsri Securities Research 5

CG Rating 2018 Companies with CG Rating

ADVANC AKP AMATA AMATAV ANAN AOT AP BAFS BANPU BAY BCP BCPG BRR BTS BWG CFRESH CHO CK CKP CM CNT COL CPF CPI CPN CSS DELTA DEMCO DRT DTAC DTC EA EASTW EGCO GC GEL GFPT GGC GOLD GPSC GRAMMY GUNKUL

HANA HMPRO ICC ICHI INTUCH IRPC IVL JSP KBANK KCE KKP KSL KTB KTC LHFG LIT LPN MBK MCOT MINT MONO MTC NCL NKI NVD NYT OISHI OTO PCSGH PDJ PG PHOL PLANB PLANET PPS PRG PSH PSL PTG PTT PTTEP PTTGC PYLON Q-CON QH QTC RATCH ROBINS S & J SABINA SAMART SAMTEL SAT SC SCB SCC SCCC SDC SE-ED SIS SITHAI SNC SPALI SPRC SSSC STEC SVI SYNTEC TASCO TCAP THAI THANA THANI THCOM THIP THREL TIP TISCO TKT TMB TNDT TOP TRC TRU TRUE TSC TSTH TTCL TU TVD UAC UV VGI VIH WACOAL WAVE WHA WINNER

2S AAV ACAP AGE AH AHC AIRA AIT AKR ALLA ALT AMA AMANAH APCO AQUA ARIP ARROW ASIA ASIMAR ASK ASN ASP ATP30 AU AUCT AYUD BA BBL BDMS BEC BEM BFIT BGRIM BIZ BJC BJCHI BLA BOL BPP BROOK BTW CBG

CEN CENTEL CGH CHEWA CHG CHOW CI CIMBT CNS COM7 COMAN CPALL CSC CSP DCC DCORP DDD EASON ECF ECL EE EPG ERW ETE FN FNS FORTH FPI FSMART FVC GBX GCAP GLOBAL GLOW GULF HARN HPT HTC HYDRO ICN ILINK INET IRC ITD JAS JCKH JKN JWD K KBS KCAR KGI KKC KOOL KTIS L&E LANNA LDC LH LHK LOXLEY LRH LST M MACO MAJOR MALEE MBKET MC MEGA

METCO MFC MFEC MK MOONG MSC MTI NCH NEP NINE NOBLE NOK NSI NTV NWR OCC OGC ORI PAP PATO PB PDI PJW PLAT PM PORT PPP PREB PRECHA PRINC PRM PT QLT RICHY RML RS RWI S S11 SALEE SANKO SAWAD SCG SCI SCN SE SEAFCO SEAOIL SELIC SENA SFP SIAM SINGER SIRI SKE SMK SMPC SMT SNP SORKON SPC SPI SPPT SPVI SR SSF SST STA SUC SUSCO

SUTHA SWC SYMC SYNEX TACC TAE TAKUNI TBSP TCC TEAM TFG TFMAMA THRE TICON TIPCO TK TKN TKS TM TMC TMI TMILL TMT TNITY TNL TNP TNR TOA TOG TPA TPAC TPBI TPCORP TRITN TRT TSE TSR TSTE TTA TTW TVI TVO TWP TWPC U UMI UOBKH UP UPF UPOIC UT UWC VNT WHAUP WICE WIIK XO YUASA ZMICO

7UP ABICO ABM AEC AEONTS AF AJ ALUCON AMARIN AMC AS ASAP ASEFA ASIAN BCH BEAUTY BGT BH BIG BLAND BM BR BROCK BSBM BTNC CCET CCP CGD CHARAN CHAYO CITY CMO CMR COLOR CPL CPT CRD CSR CTW CWT D DCON DIGI DIMET EKH EMC EPCO ESSO ESTAR FE FLOYD FOCUS FSS FTE GENCO GIFT

GJS GLAND GPI GREEN GTB GYT HTECH IFS IHL III INOX INSURE IRCP IT

ITEL J JCK JMART JMT JTS JUBILE KASET KCM KIAT KWC KWG KYE LALIN LEE LPH MATCH MATI MBAX M-CHAI MDX META MILL MJD MM MODERN MPG NC NDR NETBAY NNCL NPK OCEAN PAF PDG PF PICO PIMO PK PL PLE PMTA PPPM PRIN PSTC PTL RCI RCL RJH ROJNA RPC RPH SAMCO SAPPE SCP SF SGF SGP SKN SKR SKY SLP SMIT SOLAR SPA SPCG SPG SQ SRICHA SSC

SSP STANLY STPI SUN SUPER SVOA T TCCC TCMC THE THG THMUI TIC TITLE

TIW TMD TOPP TPCH TPIPP TPOLY TTI TVT TYCN UEC UMS UNIQ VCOM VIBHA VPO WIN WORK WP WPH ZIGA

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 2018

Companies that have declared their intention to join CAC

A ABICO AIE AJ AMATA AMATAV ANAN AOT APCO ARROW ASIAN B BJC BLAND BLISS BM BPP BR BUI CEN CGH CHG CHO CHOTI CI CIMBT CITY COL CPR DDD EFORL EKH ESTAR ETE FLOYD FN FPI FTE GPI GYT ICHI ILINK INSURE IRC ITEL JAS JTS KWG LDC LEE LIT LRH MATCH MATI META MFEC MILL MTC NCL NEP NWR ORI PAP PK PLANB POST PRM PRO PSL PYLON QTC ROJNA RWI SAPPE SCI SHANG SPALI SST STANLY SUPER SWC SYMC SYNEX TAKUNI THE THIP TKN TMC TNR TOPP TPP TRITN TTI TVO UEC UKEM UPA UREKA UV UWC VIH XO YUASA

Companies certified by CAC ADVANC AKP AMANAH AP APCS ASK ASP AYUD BAFS BANPU BAY BBL BCH BCP BCPG BGRIM BJCHI BKI BLA BROOK BRR BSBM BTS BWG CENTEL CFRESH CHEWA CIG CM CNS COM7 CPALL CPF CPI CPN CSC DCC DEMCO DIMET DRT DTAC DTC EASTW ECL EGCO EPCO FE FNS FSS GBX GC GCAP GEL GFPT GGC GJS GLOW GOLD GPSC GSTEL GUNKUL HANA HARN HMPRO HTC ICC IFEC IFS INET INTUCH IRPC IVL K KASET KBANK KBS KCAR KCE KGI KKP KSL KTB KTC KWC L&E LANNA LHFG LHK LPN M MAKRO MALEE MBAX MBK MBKET MC MCOT MFC MINT MONO MOONG MSC MTI NBC NINE NKI NMG NNCL NSI OCC OCEAN OGC PATO PB PCSGH PDG PDI PDJ PE PG PHOL PL PLANET PLAT PM PPP PPPM PPS PREB PRG PRINC PSH PSTC PT PTG PTT PTTEP PTTGC Q-CON QH QLT RATCH RML ROBINS S & J SABINA SAT SC SCB SCC SCCC SCG SCN SE-ED SELIC SENA SGP SINGER SIRI SIS SITHAI SMIT SMK SMPC SNC SNP SORKON SPACK SPC SPI SPRC SRICHA SSF SSI SSSC STA SUSCO SVI SYNTEC TAE TASCO TCAP TCMC TFG TFI TFMAMA THANI THCOM THRE THREL TICON TIP TIPCO TISCO TKT TMB TMD TMILL TMT TNITY TNL TNP TOG TOP TPA TPCORP TRU TRUE TSC TSTH

TTCL TU TVD TVI TWPC U UBIS UOBKH VGI VNT WACOAL WHA WICE WIIK

N/A 2S 7UP AAV ABM ACAP ACC ADAM ADB AEC AEONTS AF AFC AGE AH AHC AI AIRA AIT AJA AKR ALLA ALT ALUCON AMA AMARIN AMC APEX APURE AQ AQUA ARIP AS ASAP ASEFA ASIA ASIMAR ASN ATP30 AU AUCT BA BAT-3K BCT BDMS BEAUTY BEC BEM BFIT BGC BGT BH BIG BIZ BKD BOL BROCK BSM BTNC BTW CBG CCET CCP CGD CHARAN CHAYO CHOW CHUO CK CKP CMAN CMC CMO CMR CNT COLOR COMAN COTTO CPH CPL CPT CRANE CRD CSP CSR CSS CTW CWT D DCON DCORP DELTA DIGI DNA DOD DTCI EA EARTH EASON ECF EE EIC EMC EPG ERW ESSO EVER F&D FANCY FC FMT FOCUS FORTH FSMART FVC GENCO GIFT GL GLAND GLOBAL GRAMMY GRAND GREEN GTB GULF HFT HPT HTECH HUMAN HYDRO ICN IEC IHL III INGRS INOX IRCP IT ITD J JCK JCKH JCT JKN JMART JMT JSP JUBILE JUTHA JWD KAMART KC KCM KDH KIAT

KKC KOOL KTECH KTIS KWM KYE LALIN LH LOXLEY LPH LST LTX LVT MACO

MAJOR MANRIN MAX M-CHAI MCS MDX MEGA METCO MGT MIDA MJD MK ML MM

MODERN MPG MPIC MVP NC NCH NDR NER NETBAY NEW NEWS NFC NOBLE NOK

NPK NPPG NTV NUSA NVD NYT OHTL OISHI OSP OTO PACE PAE PAF PERM

PF PICO PIMO PJW PLE PMTA POLAR POMPUI PORT PPM PR9 PRAKIT PRECHA PRIN PTL RAM RCI RCL RICH RICHY RJH ROCK ROH RP RPC RPH RS RSP S S11 SAAM SAFARI SALEE SAM SAMART SAMCO SAMTEL SANKO SAUCE SAWAD SAWANG SCP SDC SE SEAFCO SEAOIL SF SFP SGF SIAM SIMAT SISB SKE SKN SKR SKY SLP SMART SMM SMT SOLAR SONIC SPA SPCG SPG SPORT SPPT SPVI SQ SR SSC SSP STAR STEC STHAI STI STPI SUC SUN SUTHA SVH SVOA T TACC TAPAC TBSP TC TCC TCCC TCJ TCOAT TEAM TEAMG TGPRO TH THAI THANA THG THL THMUI TIC TIGER TITLE TIW TK TKS TM TMI TMW TNDT TNH TNPC TOA TPAC TPBI TPCH TPIPL TPIPP TPLAS TPOLY TQM TR TRC TRT TRUBB TSE TSF TSI TSR TSTE TTA TTL TTTM TTW TVT TWP TWZ TYCN UAC UMI UMS UNIQ UP UPF UPOIC UT UTP UVAN VARO VCOM VI VIBHA VNG VPO WAVE WG WHAUP WIN WINNER WORK WORLD WP WPH WR YCI YNP 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 th e 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, v erify, 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

Headquarters 898 Ploenchit Tower, 3rd Floor, Ploenchit Road, Lumpini Pathumwan, 10330 Tel: 0-2659-7000 Fax: 0-2658-5699

Branches Emporium 662 Emporium Tower, Fl. 10, Sukhumvit 24 Road 01 Klongton, Klongtoey, Bangkok 10110 Tel: 0-2695-4500 Fax: 0-2695-4599

Central Bangna 589/151 Central City Tower, Fl. 27 02 Debaratana Road, Bangna Nua,Bangna, Bangkok 10260 Tel: 0-2763-2000 Fax: 0-2399-1448

Rama II 111/917-919 Fl. 4 Rama II Road, Smaedum, 03 Bangkhuntien, Bangkok 10150 Tel: 0-2013-7145 Fax: 0-2895-9557

Vibhavadi-rangsit Bank of Ayudhya Public Company Limited 123 Suntowers (B) Building, Vibhavadirangsit Road, 04 Jompol, Jatujak, Bangkok 10900 Tel: 0-2273-8388 Fax: 0-2273-8399

Chonburi 64/17 Sukhumvit Road, Tambol Bang Plasoi, 05 Amphur Muang, Chonburi 20000 Tel: 0-3312-6580 Fax: 0-3312-6588

Hat Yai Branch 90-92-94 Nipat U Tit Nueng Road,Tambol Hat Yai, 06 Amphur Hat Yai, Songkhla 90110 Tel: 0-7422-1229 Fax: 0-7422-1411

Nakhon Pathom 67/1 Ratchadamnoen Road, Tambol Phra Pathom Jaedee, Amphur Muang Nakhon Pathom, Nakhon 07 Pathom 73000 Tel: 0-3427-5500-7 Fax: 0-3421-8989

Suphanburi 249/171-172 Moo 5 Tambol Ta Rahad, 08 Amphur Muang, Suphanburi, 72000 Tel: 0-3596-7981 Fax: 0-3552-2449

Nakhon Ratchasima 168 Chomphon Road, Tambol Nai Muang, Amphur Muang Nakhon Ratchasima, 09 Nakhon Ratchasima 30000 Tel: 0-4425-1211-4 Fax: 0-4425-1215

Khon Kaen 114 Sri Chan Road, Tambol Nai Muang, 10 Amphur Muang Khon Kaen, Khon Kaen 40000 Tel: 0-4322-6120 Fax: 0-4322-6180

Chiang Mai 70 Chang Phuak Road, Tambol Sri Phum 11 Amphur Muang Chiang Mai, Chiang Mai 50200 Tel: 0-5321-9234-6 Fax: 0-5321-9247

Chiang Rai 231-232 Thamalai Road, Tambol Wiang, 12 Amphur Muang Chiang Rai, Chiang Rai 57000 Tel: 0-5371-6489 Fax: 0-5371-6490

Phitsanulok 275/1 Phichaisongkram Road, Tambol Nai Muang, 13 Amphur Muang Phisanolok, Phitsanulok 65000 Tel: 0-5530-3360 Fax: 0-5530-2580

Definition of Ratings 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

Krungsri Securities Public Company Limited