- Translation - Opinion of the Independent Financial Advisor on the Tender Offer for the Securities Royal Orchid Hotel (Thailand) Public Company Limited Tender Offeror Grande Asset Hotels and Property Public Company Limited Prepared by Discover Management Company Limited May 24, 2018 Opinion of Independent Financial Advisor Royal Orchid Hotel (Thailand) Public Company Limited Abbreviation Meaning Abbreviation Royal Orchid Hotel (Thailand) Public Company Limited : The Company or the Business or ROH Thai Royal Orchid Real Estate Limited : TRO Sheraton Royal Orchid Company Limited : SRO Grande Asset Hotels and Property Public Company Limited : Tender Offeror or GRAND Property Perfect Public Company Limited : PF Thai Property Public Company Limited : TPROP Metro Premier Holding Company Limited : METRO Starwood Hotel (Thailand) Company Limited : STARWOOD Thai Airways International Public Company Limited : THAI MBK Hotels and Resorts Company Limited : MBKHR Tender Offer (Form 247-4) of Royal Orchid Hotel (Thailand) Public Company : Form 247-4 or Tender Offer Limited dated May 3, 2018 Discover Management Company Limited : IFA or DISCOVER The Siam Commercial Bank Public Company Limited : Tender Offer Preparer or SCB SCB Securities Company Limited : Tender Offer Agent or SCBS Ktac Appraisal and Service Company Limited : Independent Appraiser or KTAC Securities Exchange Commission : SEC Stock Exchange of Thailand : SET Annual General Meeting : AGM Extraordinary General Meeting : EGM Discover Management Company Limited Page 2/65 Opinion of Independent Financial Advisor Royal Orchid Hotel (Thailand) Public Company Limited Table of Content 1. The Tender Offeror Information (GRAND) ............................................................................................. 10 1.1. General Information ............................................................................................................................... 10 1.2. GRAND Business information in brief .................................................................................................... 10 1.3. Group Structure ...................................................................................................................................... 11 1.4. Overview of GRAND Business Operation ............................................................................................. 11 1.5. Registered capital and paid-up capital ................................................................................................. 13 1.6. Revenue Structure ................................................................................................................................. 14 1.7. GRAND Board of Directors .................................................................................................................... 14 1.8. Shareholders of GRAND ........................................................................................................................ 15 1.9. Financial position and performance ...................................................................................................... 16 1.10. Related parties and connected transactions ........................................................................................ 30 1.11. Information relating to criminal records ................................................................................................. 31 1.12. Material Pending Litigation or Claims .................................................................................................... 31 1.13. Source of Funds for the Tender Offer .................................................................................................... 31 2. Independent Financial Advisor’s Opinion on the Offer Price of ROH’s securities ................................ 32 2.1. Book Value Approach ............................................................................................................................ 33 2.2. Adjusted Book Value Approach ............................................................................................................ 33 2.3. Market Price Approach .......................................................................................................................... 36 2.4. Price to Book Value Ratio Approach or P/BV Ratio ............................................................................... 38 2.5. Price-to-Earnings Ratio Approach ......................................................................................................... 40 2.6. Discounted Cash Flow Approach .......................................................................................................... 40 2.7. Discount Rate ......................................................................................................................................... 46 2.8. Summary of the Appropriateness of the ROH’s Ordinary Shares Offer Price ...................................... 48 3. Reasons to Accept and/or Reject the Tender Offer .............................................................................. 49 3.1 Reasons to Reject the Tender Offer ...................................................................................................... 49 3.2. Risk of shareholders from rejecting this Tender Offer ........................................................................... 52 3.3. Other factor for consideration ................................................................................................................ 53 4. The Opnion of the IFA to the business plan and policies of the Tender Offeror .................................. 59 5. Benefit and impact to Shareholders who reject the offer (only for the case that the Tender Offer ...... 62 6. Summary of the Material Information of Any Contract/ Agreement ....................................................... 62 7. The Opinion of the Independent Financial Advisor ............................................................................... 63 Discover Management Company Limited Page 3/65 Opinion of Independent Financial Advisor Royal Orchid Hotel (Thailand) Public Company Limited This English Translation has been prepared solely for the convenience of the foreign shareholders of Royal Orchid Hotel (Thailand) Public Company Limited and should not be relied upon as the definitive and official opinion of the Independent Financial Advisor. The Thai language version of the Opinion of the Independent Financial Advisor on the Tender Offer is the definitive and official document and shall prevail in all respects in the event of any inconsistency with the English translation. Opinion of the Independent Financial Advisor on the Tender Offer for the securities of Royal Orchid Hotel (Thailand) Public Company Limited May 24, 2018 DM042/2018 Subject: Opinion of Independent Financial Advisor on the Tender Offer for Securities Royal Orchid Hotel (Thailand) Public Company Limited To: Directors and shareholders of Royal Orchid Hotel (Thailand) Public Company Limited Reference: 1. Resolution of Board of Directors’ meeting of Royal Orchid Hotel (Thailand) Public Company Limited No. 4/2018 held on May 11, 2018 2. Form on annual performance year 2017 of Royal Orchid Hotel (Thailand) Public Company Limited (Form 56-1) 3. Audited financial statements of Royal Orchid Hotel (Thailand) Public Company Limited for the 12 months ended December 31, 2015-2017 and reviewed financial statements of Royal Orchid Hotel (Thailand) Public Company Limited for the 3 months ended March 31, 2018 4. Tender Offer (Form 247-4) of the Tender Offeror and amendment version 5. Appraisal report of Royal Orchid Hotel (Thailand) Public Company Limited by Ktac Appraisal and Service Company Limited 6. Interviews with the management of Royal Orchid Hotel (Thailand) Public Company Limited and related person 7. Operating Services Agreement, Centralized Services Agreement, Nondisturbance Agreement and System License Agreement, including related documents and agreement Disclaimers: 1. In preparing this report, Discover Management Company Limited (“Independent Financial Advisor” or “IFA”or “DISCOVER”) has relied on information provided by the management of Royal Orchid Hotel (Thailand) Public Company Limited, the information of the Company disclosed to the public on the websites of the Securities and Exchange Commission (www.sec.or.th) and the Stock Exchange of Discover Management Company Limited Page 4/65 Opinion of Independent Financial Advisor Royal Orchid Hotel (Thailand) Public Company Limited Thailand (www.set.or.th) and the information of the Tender Offeror disclosed to the public on the websites of the Securities and Exchange Commission (www.sec.or.th) and the Stock Exchange of Thailand (www.set.or.th). 2. IFA shall not be responsible for the profits or the losses and any impacts resulting from this transaction. 3. IFA conducted the study with knowledge, skills, and reasonable professional care. 4. IFA considered and provided opinion based on prevailing market conditions and information. If market conditions and information change in the future, the results of the study in this report may be affected. 5. IFA, its shareholders, directors and management team bear no relationship to ROH, SCB, SCBS or GRAND. The Annual General Meeting of Shareholders of year 2018 of Grande Asset Hotels and Property Public Company Limited (“Tender Offeror” or “GRAND”) held on April 20, 2018 passed a resolution to approve the investment of ordinary shares of Royal Orchid Hotel (Thailand)