Opportunity Day 24 th February, 2010 The Stock Exchange of Thailand - - PowerPoint PPT Presentation

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Opportunity Day 24 th February, 2010 The Stock Exchange of Thailand - - PowerPoint PPT Presentation

May 11, 2023 460 likes •798 views

Kim Eng Securities ( Thailand) Public Company Limited Opportunity Day 24 th February, 2010 The Stock Exchange of Thailand KESTs History 1990 Nithipat Capital Co., Ltd established in October 1990 1996 Becomes Nithipat Capital and

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SLIDE 1

Kim Eng Securities (Thailand) Public Company Limited

Opportunity Day

24th February, 2010 The Stock Exchange of Thailand

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KEST’s History

1990 Nithipat Capital Co., Ltd established in October 1990 1996 Becomes Nithipat Capital and Securities Co., Ltd (NICS) 1998 Kim Eng Holdings Ltd. gains total control of NICS 2001 Kim Eng merges with Yuanta; acquires 77.73% of Yuanta (Thailand) Co., Ltd 2002 Kim Eng secures number 1 position in terms of brokerage market share 2003

  • Launched online trading service, KETRADE
  • Kim Eng listed on the SET – 3rd December 2003

2004 KEST is in MSCI Index and SET50 Index 2005 Received Derivatives Agent and Stock Borrowing and Lending licenses from the Ministry of Finance on 17 August and 26 December respectively 2006 Launched derivatives business on Thailand Futures Exchange (TFEX), with SET50 Index Futures “Most Popular House 2006” at TFEX Best Awards 2006 2007-2008 Awarded Best Research House – Retail for 2 consecutive years 2009 Kim Eng maintained its premier position in term of top ranking brokerage market share for 8 consecutive years since 2002- 2009; and also number one of market share in derivatives from Jan - Dec 2009.

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Organization Structure

Marketing Trainee Internal Audit & Compliance Management Committee (MANCOM) Chief Executive Officer (CEO) General Risk Management Research Derivatives Investment Banking Corporate Com. & Training Business Development Board of Directors Audit Committee Risk Management Committee E-Commerce Retail Sales & Dealing Retail 1 Retail 2 Foreign Institutional Local Institutional Institutional Sales Human Resources Treasury/ Cashiers Settlement/ Custodian Accounting General Services Corporate Legal Chief Operating Officer (COO) Underwriting Committee Investment Committee (IC) Operation Client Service Information and Technology Chief Fin. Officer Client Credit & Risk Control CG Committee Chief Executive Officer (CEO – Retail Business Development)

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4

Board of Directors

Honorary Chairperson ;

  • Mrs. Gloria Lee Kim Yew

The Board of Directors ; 1 Mr. Yuth Vorachattarn Chairman to the BOD & Audit Committee Member

  • 2. Dr. Paiboon Sareewiwatthana

Director & Chairman to the Audit Committee

  • 3. Dr. Preecha Jarungidanan

Director & Audit Committee Member

  • 4. Mr. Ronald Anthony Ooi Thean Yat

Director

  • 5. Mr. Montree Sornpaisarn

Director

  • 6. Mr. Judd Clark Kinne

Director

  • 7. Mr. Hwang Wei Cherng

Director

  • 8. Mr. Tan Pei-San

Director 9.

  • Mr. Pusit Kaewmongkolsri

Director KEST’s Management Committee comprises 6 members, as below

  • 1. Mr. Montree Sornpaisarn

Management Committee Chairman

  • 2. Mr. Pusit Kaewmongkolsri

Management Committee Member

  • 3. Mr. Supachai Ekkul

Management Committee Member

  • 4. Ms. Boonporn Boriboonsongsilp

Management Committee Member

  • 5. Mr. Ong Cheow Kheng

Management Committee Member

  • 6. Mr. Kosit Boonruangkaw

Management Committee Member

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5

Bangkok 14 Branch Korat 1 Branch Mahachai 1 Branch Had Yai 2 Branch Phuket 1 Branch Chiang Mai 2 Branch Chantburi 1 Branch Surin 1 Branch Ubonratchathani 1 Branch Lampang 1 Branch Surat Thani 1 Branch Cholburi 1 Branch Rayong 1 Branch Samut Songkhram 1 Branch Aranyaprathet 1 Branch Korat 2 Branch

Background of KEST

KEST commits itself to provide brokerage services in Thailand. KEST has total 42 branches including head office; 24 branches in Bangkok, 17 branches in the

  • provinces. KEST enjoys an unique

position having “Local Leadership” with a global reach.

Had Yala 1 Branch

As of August 2008

Phahurat Ladprao Ngarmvongvarn Seacon Yada Emporium Thapra Asoke Srinakarin Future ParkRungsit Bangkhae Yaowarat Pinklao Thaniya Head Office Satornnakorn Town in Town Fashion Iceland

Thailand Thailand Malaysia Malaysia Singapore Singapore Indonesia Indonesia Philippines Philippines Hong Kong Hong Kong London London New York New York Thailand Thailand Malaysia Malaysia Singapore Singapore Indonesia Indonesia Philippines Philippines Hong Kong Hong Kong London London New York New York

Vietnam

Thailand Thailand India

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6

0% 20% 40% 60% 80% 100% 2006 2006 2007 2007 2008 2008 2009 2009

2 4 6 8 10 12 14 Local Investors Foreign Investors Local Institutes

  • MKT. SHARE

KEST’s Highlights

Market Share 2009 (%)

Portion of each Customer Type of market and KEST’s market share

Local Investors Local Institutes

Baht 4,528.86 million shareholder’s equity with NCR of 180.26% as of 31 December, 2009.

918 total staffs, which include

  • 567 marketing officers; largest among brokers
  • 28 research analysts, covering economic,

fundamental and technical analysis.

  • 18 investment banking staff covering debt & equity

capital markets and offering financial advisory services.

  • 3 derivatives staff managing derivatives products.

42 branches including head office

Awarded Best Research House 2008 : Retail and Best Analyst in Energy & Petrochemicals (Retail)

Awarded Best Shareholder Treatment Awards 2008

Jan-Dec 2009 Equity Futures Market share 10.68% 10.75% Ranking 1 1

2.01 2.15 2.19 2.27 2.39 2.5 2.54 2.6 2.84 2.99 3.29 3.36 3.88 4.08 4.38 4.45 4.83 5.11 5.47 5.71 10.68 DBSV FSS MACQ GLOBL KS SCBS TSC CNS UBS BFITSE AYS CS KGI BLS TNS PHATR CGS PST KTZ ASP KIMENG

KEST’s market share (%) Portion of each Customer Type

Foreign Investors

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Breakdown Of KEST Customers

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

ม.ค. 07 ก.พ. 07 มี.ค. 07 เม.ย. 07 พ.ค. 07 มิ.ย. 07 ก.ค. 07 ส.ค. 07 ก.ย. 07 ต.ค. 07 พ.ย. 07 ธ.ค. 07 ม.ค. 08 ก.พ. 08 มี.ค. 08 เม.ย. 08 พ.ค. 08 มิ.ย. 08 ก.ค. 08 ส.ค. 08 ก.ย. 08 ต.ค. 08 พ.ย. 08 ธ.ค. 08 ม.ค. 09 ก.พ. 09 มี.ค. 09 เม.ย. 09 พ.ค. 09 มิ.ย. 09 ก.ค. 09 ส.ค. 09 ก.ย. 09 ต.ค. 09 พ.ย. 09 ธ.ค. 09

Retial Foreign Local

Customer Breakdown

Retail, foreign and local institutional customers respectively accounted for 90%, 6% and 4% of KEST’s brokerage business during January – December 2009.

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Market Share By Customer Type

Market share of each KEST's customer type to market sector

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% ม.ค./07 ก.พ./07 มี.ค./07 เม.ย./07 พ.ค./07 มิ.ย./07 ก.ค./07 ส.ค./07 ก.ย./07 ต.ค./07 พ.ย./07 ธ.ค./07 ม.ค./08 ก.พ./08 มี.ค./08 เม.ย./08 พ.ค./08 มิ.ย./08 ก.ค./08 ส.ค./08 ก.ย./08 ต.ค./08 พ.ย./08 ธ.ค./08 ม.ค./09 ก.พ./09 มี.ค./09 เม.ย./09 พ.ค./09 มิ.ย./09 ก.ค./09 ส.ค./09 ก.ย./09 ต.ค./09 พ.ย./09 ธ.ค./09

IS LI Retail

Market Share of KEST by Customer Type Date Retail Foreign Institution

Jan-07 11.38% 3.22% 2.34% Feb-07 11.75% 4.26% 3.03% Mar-07 10.96% 2.18% 2.14% Apr-07 11.23% 4.84% 2.93% May-07 11.36% 2.39% 3.12% Jun-07 12.23% 2.93% 1.82% Jul-07 12.00% 3.87% 1.78% Aug-07 12.55% 4.83% 2.29% Sep-07 11.98% 2.59% 1.71% Oct-07 12.58% 4.30% 1.84% Nov-07 13.58% 4.16% 1.91% Dec-07 12.92% 4.35% 2.00% Jan-08 12.86% 3.64% 2.42% Feb–08 12.89% 3.95% 2.95% Mar-08 12.50% 2.06% 1.97% Apr-08 13.26% 3.54% 2.02% May-08 13.70% 3.26% 1.85% Jun-08 12.35% 3.21% 2.76% Jul-08 11.76% 2.41% 1.71% Aug-08 12.07% 3.03% 1.87% Sep-08 12.00% 3.18% 1.83% Oct-08 12.69% 2.65% 1.32% Nov-08 12.60% 2.24% 1.28% Dec-08 14.52% 3.15% 1.92% Jan-09 15.46% 1.41% 2.01% Feb-09 14.22% 4.72% 2.57% Mar-09 14.64% 4.67% 2.99% Apr-09 14.87% 1.93% 2.85% May-09 16.29% 2.72% 1.69% Jun-09 15.29% 3.54% 1.28% Jul-09 15.88% 3.96% 1.59% Aug-09 15.50% 4.15% 1.90% Sep-09 Oct-09 Nov-09 Dec-09 15.56% 14.95% 15.40% 15.86% 2.97% 4.14% 4.47% 2.18๔ 1.60% 4.39% 5.00% 3.30%

KEST’s market share among domestic retail market in 2009 improved to be 14-16% level.

KEST’s foreign investor market share in 2009 dropped to 2-4% on stiff competition from brokers with new, exclusive partnerships with foreign firms and wholly owned subsidiaries of Thai financial institutions.

All market share numbers were distorted by proprietary trading portion which was 7.34%, 9.84% in 2007 – 2008 and 12.46% in the first 10 month

  • f 2009.

Since November, the SET has published proprietary trading on monthly

  • basis. Therefore, our market share among LI became 4 - 5%.
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Derivatives Brokerage Business

In Jan – Dec 2009, KEST’s Brokerage fee from Derivatives Business was 206 million baht compared to 177 million baht in Jan - Dec 2008, representing the revenue growth of 16%. KEST’s average daily volume increased from 2,248 contracts in Jan - Dec 2008 to 2,720 contracts in Jan – Dec 2009, representing an increase by 21%. In Jan - Dec 2009, the overall derivatives trading value represented 30% of the cash

  • market. In Jan – Dec 2009, KEST ranked No.1 in term of market shares that accounted for 10.75% of the

total volume in the derivatives market.

KEST's Derivatives Volumes and Market Share(%) (Year 2008)

41,672 35,488 14,444 28,858 31,384 44,919 59,475 83,085 49,263 89,532 51,818 25,413 15.10% 12.88% 11.31% 11.91% 9.60% 11.39% 12.87% 11.16% 14.42% 14.12% 12.32% 14.33%

20,000 40,000 60,000 80,000 100,000 120,000 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

Volume(Contracts)

0% 2% 4% 6% 8% 10% 12% 14% 16%

Market Share(%)

Volume M kt Share

KEST's Derivatives Volumes and Market Share(%) (Year 2009)

54,387 39,250 36,067 33,944 55,727 61,621 65,957 76,729 64,021 67,835 59,042 46,390 10.96% 10.37% 14.09% 14.40% 9.81% 11.66% 10.35% 9.06% 10.67% 11.14% 10.19% 10.09%

20,000 40,000 60,000 80,000 100,000 120,000 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

Volume(Contracts)

0% 2% 4% 6% 8% 10% 12% 14% 16%

Market Share(%)

Volume M kt Share

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Customer Accounts with Dormant A/C

12-A Number of Accounts Dec 08 Dec 09 % Change Jan 10 % Change Total Equity Account 57,093 73,246 28.29% 74,009 1.04% Internet Accuont 12,474 21,280 70.59% 21,806 2.47% Credit Balance Account 694 969 39.63% 988 1.96% Cash Account 43,925 50,997 16.10% 51,215 0.43% Futures Account 2,057 3,604 7775.21% 3,695 2.52% Number of Active Account Dec 07 Dec 08 % Change Jan 10 % Change Total Equity Account 25,869 33,528 29.61% 33,982 1.35% Internet Account 6,151 10,972 78.38% 11,323 3.20% Credit Balance Account 315 492 56.19% 509 3.46% Cash Account 19,403 22,064 13.71% 22,150 0.39% Futures Account 992 1,529 54.13% 1,574 2.94%

 At the end of January

2010, KEST had 74,009 equity accounts and 3,695 futures accounts.

 29.46 % were internet

accounts,1.33% margin accounts and the rest were cash accounts with credit lines.

 49.92% of equity accounts

and 42.60% of futures accounts were active accounts.

 Outstanding loans on

margin accounts at the end

  • f January 2010 totally Baht

1,800 million.

 Short sell value at the end

  • f January 2010 totaled Baht

76 million.

There were no defaults on

KEST margin accounts.

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Samples of Our Innovations

KEST always develop our information and communication technology to support an efficient tool for our investors, both professional fund managers and retail investors.

1st Thai broker with live research analysis via internet (kelive TV) both fundamental and technical analysis.

Real time stock information and trading via PDA. 12-A

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KEST’s Track Record from 2003 to 2008

BLCP Power 2003 FA for Connected transaction Global Thai Finance 2003 IFA on divesture of GTF in GTS CH.Karnchang 2004 FA on issue Right Warrants and ESOP Warrants Siam General Factoring 2004 IFA on Connected Transaction for Acquiring Global Thai Finance’s shares Siam Cement 2004 Tender Agent for Acquisition of TPC shares NPC Shares Thai Military Bank 2004 IFA on Connected Transaction for Acquiring DTDB & IFCT LPN Development 2004 FA for share valuation

  • n one of its subsidiary

Matching Studio 2004 IFA for Tender Offer waiver (whitewash) CS Loxinfo 2005 FA for Valuation of Teleinfo Media Bangchak Pertroleum 2005 IFA for Connected Transaction and Whitewash GMM Media 2005 IFA on Connected Transaction for Share Acquisition in MATI and POST Manecomp Precision Technologies 2005 Tender Offer Preparer and Tender Offer Agent Industrial Estate Authority of Thailand 2005 Co-FA for Study on Potential Privatization Millennium Steel 2006 IFA on Tender Offer by Tata Steel and NatSteel Bank of Ayudhya 2006 IFA on Whitewash, PP at low price to GE and asset acquisition from GE IAG Group 2006 Tender Offer Preparer & Tender Agent for Acquisition of Safety Insurance Shares Thai Military Bank 2008 IFA on Connected Transaction and T/O Waiver for ING Bank

M&A and Financial Advisory

Ocean Life Insurance 2008 Financial Advisor on Joint Venture with Dai-ichi Life Insurance Thai–German Ceramic Industry 2008 IFA on Tender Offer by Ceramic Cementhai Golden Land Property Development 2008 FA on Issuance of ESOP Warrant PTT 2008 FA on Acquisition Strategy of a listed company Charernkit Enterprise

2009 FA on Acquisition & Backdoor listing of MEDIAS Tender Offer Preparer & Tender Agent

Kasikorn Thai Bank 2009 IFA on Acquiring Muang Thai Insurance TSFC Securities 2009 FA on Debt & Capital Restructuring Loan Arranger Siam Cement Group 2009 FA on Share Valuation

  • f their investment in a

Non-listed Company Thai Credit Bank 2009 FA on Acquiring of a Leasing Company Bangchak Petroleum 2009 FA on Enhancing Liquidity & Firm Value Bangchak Petroleum 2009 FA on EJIP Program

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KEST’s Track Record from 2005-2009

Equity Capital Market

Italian Thai Development 2005 Co-Lead Manager Issue Size: 4,600 MB Bangsaphan Barmill 2005 Lead Underwriter Issue Size: 860.7 MB Salee Industry 2005 Lead Underwriter Issue Size: 99.7 MB Shin Satellite 2005 Co-Lead Manager Issue Size: 3,182 MB Phatra Securities 2005 Lead Underwriter Issue Size: 1,752 MB M.C.S. Steel 2005 Lead Underwriter Issue Size: 336 MB Indorama Polymers 2005 Co-Lead Underwriter Issue Size: 1,200 MB UOB KayHian 2005 Lead Underwriter Issue Size: 465 MB Thai Ha 2005 Lead Underwriter Issue Size: 66 MB TRC Construction 2005 Lead Underwriter Issue Size: 58.65 MB Interhides 2005 Lead Underwriter Issue Size: 273.75 MB Bangkok Metro 2006 Lead Underwriter Issue Size: 3,661.24 mil. Sena Development 2009 Lead Underwriter Issue Size: 396 mil. Siam Global House 2009 Lead Underwriter Issue Size: 663 mil.

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SIS Distribution (Thailand) Plc. 2004 Lead Underwriter Issue Size: 178.45 MB C.M. Organizer 2004 Lead Underwriter Issue Size: 125.92 MB Dhanamitr Factoring 2004 Lead Underwriter Issue Size: 57.2 MB DCON Products 2004 Lead Underwriter Issue Size: 370 MB Hwa Fong Rubber (Thailand) 2003 Lead Underwriter Issue Size: 412 MB Eastern Commercial Leasing Plc. 2004 Lead Underwriter Issue Size: 125.75 MB Airport (Thailand) Plc. 2004 Senior Co-Manager

KEST’s Track Record from 2003 to 2004

Equity Capital Market

Chonburi Concrete Product 2003 Lead Underwriter Issue Size: 550 MB Bangpakong Terminal 2003 Lead Manager Issue Size: 392 MB Thai Mitsuwa 2003 Lead Manager Issue Size: 103.7 MB Tycoons Worldwide Group(Thailand) 2003 Lead Underwriter Issue Size: 2,435 MB TPI Polene 2004 Underwriter Issue Size: 1,850 MB Syrus Securities 2004 Lead Underwriter Issue Size: 660 MB Globlex Holding Management 2004 Lead Underwriter Issue Size: 494.50 MB Univenture 2003 Lead Manager Issue Size: 412.5 MB Vanachai Group 2003 Lead Manager Issue Size: 640 MB Krungthai Bank 2003 Co-lead Underwriter Issue Size: 25,500 MB Polyplex (Thailand) 2004 Co-lead Underwriter Issue Size: 1,656 MB Thainox Stainless 2004 Co-Lead Manager Issue Size: 5,250 MB Tapaco 2004 Lead Underwriter Issue Size: 56.5 MB Siam City Bank 2003 Lead Underwriter Issue Size: 8,400 MB

Our Commitment

You Can Trust !!!

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KEST’s Track Record from 2003 to 2008

Premier Resort Krabi 2003 Lead Manager Secured Amort. Debenture Issue Size: 850 MB Cental Pattana 2003 Lead Manager Property Fund Issue Size: 2,200 MB Preuksa Real Estate 2003 Lead Manager Unsecured Amort. Debenture Issue Size: 500 MB Sahaviriya Steel 2003 Lead Manager Secured Amort. Debenture Issue Size: 4,000 MB Loxley 2003 Lead Manager Unsecured Amort. Debenture Issue Size: 2,000 MB Vanachai Group 2003 Lead Manager Secured Amort. Debenture Issue Size: 1,650 MB Cental Pattana 2003 Lead Manager Property Fund Issue Size: 3,150 MB

Debt Capital Market

Ratchthani Leasing 2003 Lead Manager Secured Amort. Debenture Issue Size: 1,000 MB Central Hotels & Resort 2003 Lead Manager Property Fund Issue Size: 800 MB

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IB’s Mandated & Potential Deals

Product Type Deals

  • 1. M&A

5 -10

  • 2. Property Fund (REIT)

2 - 3

  • 3. Initial Public Offering (IPO)/Added on

Public Offering 5 -10

  • 4. Equity/Private Placement

1 - 2

  • 5. Fixed Income

2 - 3

  • 6. Financial Advisory (FA) - Others

2 - 4

Deals by Products in pipeline

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SET Awards 2008

Best Shareholder Treatment Awards 2008 : KEST has been awarded to be “Best Shareholder Treatment Awards 2008” for the listed company which has applied Good Corporate Governance Principles to protect shareholders rights and encourage shareholders to utilize their legal rights. Best Securities Company Award 2008 : KEST has been awarded as 1 of the 6 finalist for the Best Securities Company Award 2008.

Best Securities Company Award 2008 Best Shareholder Treatment Awards 2008

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SAA – Securities Analyst Award 2007 - 2008

It is an honor again that Kim Eng Securities (Thailand) Plc. has won “the Best Research House for Retail Investors” from Securities Analyst Awards for two consecutive years, 2007 – 2008, organized by the Securities Analysts Association of Thailand. Moreover, in 2007, our analysts also won best medium and small caps analyst for institutional investors and retail investors. In 2008, we also won Best Research Analyst in Energy Sector for retail investors. We see this as a recognition of our research staff hard work and dedication to provide the best quality research service to our clients and also see it as encouragement to deliver the best quality to our clients.

Best Analyst – Medium & Small Capitalization (Institution) 2007 Best Analyst – Medium & Small Capitalization (Retail) 2007 Best Research House (Retail) 2007 Best Research House (Retail) 2008 Best Analyst – Energy Sector (Retail) 2008

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In the "SET AWARDS 2006” ceremony, Kim Eng Securities (Thailand) Plc. has been short-listed top 3 firms for 3 awards:, Best Brokerage Services – Retail, Best Research House – Retail, and Best Performance – Financials This follows the company’s success at the “SET AWARDS 2004” event where KEST was short-listed top 3 firms for 4 awards: FA for Best Newly-Listed Company, Best Newly-Listed Company, Best Brokerage House Service – Retail and Best Research House – Retail. Best Performance - Financials Best Brokerage Services – Retail Best Research House - Retail

SET AWARDS 2006

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We have been selected by the Money and Banking Magazine as “Broker of the Year for 2005 & 2006” as we have maintained our No. 1 Broker position in market share for 4 consecutive years from 2002 through 2005. In 2005, we attained our No. 1 ranking with a 10.20% market share, while holding a 9.31% market share in the 1st quarter of 2006. This is coupled with our number 1 status for Thailand Equity Offerings ranked by Bloomberg for the 1st half

  • f 2005. We wish to thank all our valued clients who

place their trust in us. We believe that our success is built by the strong team work of our staff in Marketing, Investment Banking, Research Dept., back office functions and in IT. As a result, we have created a number of innovative services; On-line Trading, KETrade (On-line Trading via Internet.), KELive (Research and archives) and KELive TV (Live TV reports).

“Broker of the Year 2005 & 2006” selected by the Money and Banking Magazine

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Financial Highlights

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Revenue Structure

  • Jan. - Dec.
  • Jan. - Dec.
  • Jan. - Dec.
  • Jan. - Dec.
  • Bt. Million

%

  • Bt. Million

%

  • Bt. Million

%

  • Bt. Million

%

  • 1. Brokerage fee from Securities Busi

2,116.36 82.44% 1,511.00 76.91% 1,618.63 82.12% 1,645.15 83.49%

  • 2. Brokerage fee from Derivatives Bus

206.72 8.05% 177.95 9.06% 89.54 4.54% 15.60 0.79%

  • 3. Fee and Services income

63.66 2.48% 36.07 1.84% 24.64 1.25% 62.06 3.15%

  • 4. Gain(loss) on trading in securities

10.80 0.42%

  • 6.62
  • 0.34%

6.91 0.35% 2.92 0.15%

  • 5. Gain(loss) on trading in derivatives
  • 0.17
  • 0.01%

(0.57)

  • 0.03%
  • 0.16
  • 0.01%

(0.23)

  • 0.01%
  • 6. Interest & dividend income

77.87 3.03% 148.56 7.56% 138.57 7.03% 170.65 8.66%

  • 7. Interest on margin loan

75.29 2.93% 75.86 3.86% 62.38 3.16% 47.32 2.40%

  • 8. Other income

16.64 0.65% 22.43 1.14% 30.64 1.55% 26.95 1.37% Total 2,567.17 100.00% 1,964.68 100.00% 1,971.15 100.00% 1,970.41 100.00% Average Daily Turnover (Bt Million) 3,799.00 2,638 2,826 2,810 % Local Retail 88.43% 82.05% 78.70% 73.09% %Local Institutional 3.01% 4.54% 4.33% 4.17% % Foreign Institutional 8.56% 13.41% 16.97% 22.74% Market Share 10.68% 8.18% 8.10% 8.57% Income 2006 2008 2007 2009

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Financial Statement

2009 2008 2007 2006 2005 2004 Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Total Asset 7,125,777 5,342,035 6,796,294 5,514,546 6,329,122 6,628,170 Total Liabilities 2,596,921 1,129,534 2,623,608 1,501,052 2,281,537 2,559,813 Total Shareholders' Equity 4,528,856 4,212,501 4,172,686 4,013,494 4,047,585 4,068,357 Total Securities and Derivatives Business Receivables and accrued interest receivables 3,920,920 1,850,707 3,425,257 1,786,235 2,445,432 4,382,433 Total Income 2,567,166 1,964,686 1,971,159 1,970,406 2,355,550 3,210,025 Net Income (Loss) 716,738 533,234 551,359 532,799 714,978 1,042,662 Net Income (Loss) per share 1.26 0.94 1.00 0.98 1.31 1.91 The Weighted Average Number of Ordinary Share (Thousand Share) 568,400 561,504 552,654 545,986 545,000 545,000

Remark: At the extra ordinary shareholders’ meeting No.2/2002 held on September 5,2002, the shareholders approved to change the par value of the ordinary shares from Baht 10.00 per share to Baht 5.00 per share. So the par value for comparison every year is Baht 5.00 Unit : Thousand Baht

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24

Financial Ratios

  • No. of Shares

570,145,000 565,387,100 556,361,700

548,087,100.00

2009 2008 2007 2006 Common size

Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. Total Income

100.00% 100.00% 100.00% 100.00%

Brokerage fees

90.49% 85.97% 86.67% 84.28%

Fees and services income

2.48% 1.84% 1.25% 3.15%

Gain(loss) on trading in securities

0.41%

  • 0.37%

0.34% 0.14%

Interest and Dividend Income

5.97% 11.42% 10.19% 11.06%

Other income

0.65% 1.14% 1.55% 1.37%

Total Cost

100.00% 100.00% 100.00% 100.00%

Variable Cost

58.34% 49.02% 49.40% 47.03%

Fixed Cost

41.66% 50.98% 50.60% 52.97%

Total Assets

100.00% 100.00% 100.00% 100.00%

Cash

29.53% 51.73% 31.05% 46.37%

Investment

5.61% 6.70% 6.18% 7.66%

Account Receivable

57.23% 32.31% 55.41% 36.43%

Other Assets

7.63% 9.26% 7.36% 9.54%

Total Liabilities

100.00% 100.00% 100.00% 100.00%

Account Payable

76.78% 72.62% 82.96% 76.04%

Accrued Expense

20.35% 21.71% 14.48% 20.44%

Other Liabilities

2.87% 5.67% 2.56% 3.52%

2009 2008 2007 2006 Ratio Analysis

Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec. ROA *

11.50% 8.79% 8.96% 9.00%

ROA (Annualized)

11.50% 8.79% 8.96% 9.00%

ROE *

16.40% 12.72% 13.47% 13.22%

ROE (Annualized)

16.40% 12.72% 13.47% 13.22%

Gross Margin

80.61% 81.26% 82.09% 83.34%

Net Margin

27.92% 27.14% 27.97% 27.04%

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25

Assets

Balance Sheets

Liabilities & Equities

(Million Baht)

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Dec.05 Dec.06 Dec.07 Dec.08 Dec.09

Tatal Others Securities Business Receivable - Net Investment in Securities - Net Cash and Deposit with Finacial Institution

(Million Baht)

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Dec.05 Dec.06 Dec.07 Dec.08 Dec.09

Liabilities Shareholders' Equity

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2,356 1,970 1,971 1,965 2,567 1,415 1,254 1,233 1,248 1,566 715 533 551 533 717 500 1,000 1,500 2,000 2,500 3,000

2005 (Jan-Dec) 2006 (Jan-Dec) 2007 (Jan-Dec) 2008 (Jan-Dec) 2009 (Jan-Dec)

Total Revenues Total Expenses (excl. corporate tax) Net Profit (Loss)

Profit & Loss

Bt.Million

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Credit Outlook & NCR

Dec.09 Dec.08 Dec.07 Dec 06 Dec 05

Detail of Doubtful Account Receivable

  • Account receivable(Old Margin

Loan) – NPL before 1999 266,432,862.33 270,258,306.97 272,142,073.71 274,829,086.25 278,340,071.87 Account receivable(Old Margin Loan) – 1999 to dated

  • Account receivable - overdue cash

a/c before 1999 2,171,421.24 2,171,421.24 2,171,421.24 3,235,559.60 3,354,939.60 Account receivable - overdue cash a/c after 1999 6,091,880.64 6,215,338.10 6,091,880.64 13,272,775.58 7,112,090.01 Accrued interest receivables - margin loans 17,349,993.90 18,070,087.25 18,190,087.25 18,819,941.44 18,826,495.15 Allowance for doubtful accounts (292,043,784.36) (296,674,772) (298,492,438.04) (309,672,948.94) (307,633,596.63)

Dec.09 Dec.08 Dec.07 Dec 06 Dec 05

NCR 180.26 376.41 154.41 247.35 169.84

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Allowance for doubtful accounts and Bad Debt

Allowance for doubtful accounts Dec.09 Dec.08 Dec.07 Dec 06 Dec 05

Beginning balance of period 296,674,772 298,492,438 309,672,949 307,633,597 343,282,909 Add Doubtful accounts 38,495 186,101 173,481 6,444,717 5,226,327 Less Bad debt written-off

  • (4,603,120)
  • (9,028,051)

Less Reversal of doubtful accounts (4,669,483) (2,003,767) (6,750,872) (4,405,365) (31,847,588) Ending balance of period 292,043,784 296,674,772 298,492,438 309,672,949 307,633,597

Bad Debt and Doubtful Accounts Dec.09 Dec.08 Dec.07 Dec 06 Dec 05

Provision for new Doubtful Debt 38,495 186,101 173,481 6,444,717 5,226,327 General provision

  • (30,000,000)

Received payment from Doubtful Debt (4,669,483) (2,003,767) (6,750,872) (4,405,365) (1,847,588) Written off Bad Debt

  • 4,076,566
  • 9,085,742

Provision for such Bad Debt

  • (4,603,120)
  • (9,028,051)

Total (4,630,988) (1,817,666) (7,103,945) 2,039,352 (26,563,570)

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Existing Clients

Business Strategy

B R O K E R A G E

Investment Banking Research New Clients

 Respectable research  Continuous IB products  Dedicating marketing with service minds  Stable & efficient IT system & network  Professional

  • peration & service

 Convenient location country-wide  Prudent risk management

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KEST’s Vision

 Be the leading broker in Thailand with high

standard of research analysis, technology and services;

 Be a creative and powerful investment bank

providing wide-range financial services for capital/financial market;

 As the slogan “Clients’ benefits are our Goal”.

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HEAD OFFICE : The Offices at Central World, 20th-21st Fl.,and 24th Fl. 999/9 Rama I Road, Pathumwan Bangkok 10330, Thailand Telephone : 0-2658-6300 Fax : 0-2658-6301 Customer Service Hotline: Tel : 66(2)658-6300 Fax : 66(2) 658-6301 Email: clientservice@kimeng.co.th www.kimeng.co.th

KIM ENG SECURITIES (THAILAND) PLC.

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