NIELSEN: THAI CONSUMER CONFIDENCE ROSE 10 POINTS IN SECOND HALF OF 2010

Thailand among the world’s most optimistic nations Thailand tops global ranking for the largest number of savers Thailand posted a strong, 10-point increase in consumer confidence at the end of 2010 with a Consumer Confidence Index of 102 according to the latest Global Consumer Confidence Index released by The Nielsen Company (NYSE: NLSN). In June 2010, the index for Thailand, which tracks consumer confidence, major concerns and spending intentions among consumers, was 92. In contrast, the Asia Pacific Index declined 4 points from 101 (Q2 2010) to 97 in Q4 2010. Nielsen’s survey polled over 29,000 internet consumers in 52 countries last November 2010. Globally, confidence levels fell in 25 out of 52 countries surveyed as widespread concern for unemployment, job creation, rising food and utility costs eradicated any expectation of sustained economic recovery. Consumer Confidence Index levels above and below a baseline of 100 indicate degrees of optimism and pessimism respectively. Thailand finished the year with a Consumer Confidence Index of 102 which remained relatively high compared to the first half of the year while global consumer confidence index remained stable from the previous quarter at 90 and ended the year two index points below the start of the year. “The second half of 2010 saw a strong rebound in consumer confidence in Thailand, again underscoring the country’s resilience. Over the years Thai consumers have consistently demonstrated a great ability to bounce back from political challenges and serious threats from natural disasters. After facing massive political demonstrations which severely impacted the country in the second quarter of 2010, consumer behavior and attitudes have more or less returned to normal. Other factors that have also resulted in Thai’s feeling more confident in the past 6 months include a strong Thai Baht, the buoyant local stock market, modest inflation and stronger gold prices” said Aaron Cross, Managing Director, Nielsen Thailand. Thailand among the world’s most optimistic nations Thailand was one of 14 countries (out of 52 where the survey was conducted) that ended 2010 with a consumer confidence index of 100 points or greater. Nine of these countries are from Asia Pacific: India (131), Philippines (120), Norway (119), Indonesia (116), Australia (112), Switzerland (110), Singapore (109), Brazil (108), Malaysia (107), Saudi Arabia (107), Vietnam (103), Sweden (103), Thailand (102) and China (100). This is an increase compared to 11 countries who hit the 100+ index mark one year ago. Thai consumers more optimistic about job prospects, personal finances and ability to spend In Q4 2010, 75 percent of Thai consumers believe that the country is still in recession (76 percent in Q2). 34 percent of these consumers believe their country will head out of recession within 12 months (25 percent in Q2). Accordingly, their optimism about jobs, personal finance and spending ability surged during the last 6 months of the year: ? Optimism about job prospects jumped by 14 points: 48 percent of Thai consumers believed that their job prospects over the next 12 months would be “Good or Excellent“, up from 34 percent in the second quarter. Across the Asia Pacific region, the average was 55 percent at the end of 2010. ? 6-point increase in perception of the state of personal finances: The proportion of consumers who feel their personal finances are in an excellent or good state increased from 50 percent in the second quarter to 56 percent in Q4 2010, exceeding the average 55 percent for Asia Pacific. ? 8-point increase in intention to spend: As a result of the overall positive sentiments towards job prospects and personal finances, 46 percent of Thai consumers feel that now is the right time to the buy things they want compared to 38 percent in second quarter. Thais are the world’s most keen savers: 7 in 10 put spare cash into savings Thailand topped the global ranking with the largest numbers of savers. 73 percent of consumers indicated they will put their spare cash into savings after covering necessary living expenses, compared to 71 percent in Q2 2010. The average for Asia Pacific was 59 percent in Q4 2010. (Table 2) After savings, holidays/vacations (43%), buying new technology products (30%) and making improvements to homes (26%) were the three most popular uses of spare cash. (Table 3) “The slight increase in the proportion of consumers putting spare cash aside for savings may be a signal that consumers are still expecting some rainy days ahead, given the continuing global concerns about inflation and a sustainable economic recovery,” Cross added. Cautious spending behavior expected as consumers seek to save on household essentials Although more consumers in Thailand have indicated a stronger perception of their ability to spend, Nielsen’s survey also revealed that 88 percent of Thai consumers changed their spending habits to save on household expenses during Q4 2010, compared to 85 percent in Q2 2010. Thai consumers indicated that they are likely to reduce their expenditures in the following categories (ranked by % of respondents). (Table 4) Try to save on gas and electricity (54%)Cut spending on new clothes (47%)Cut down on out of home entertainment / telephone expenses (44%) Cut down on holidays/ short break (33%) Economy replaced political stability as top concern for Thais The economy is the biggest concern for Thai consumers in the next six months (21% vs 17% in Q2 2010), followed by political stability (12% vs 23% in Q2 2010) and job security (9% vs 7% in Q2 2010). About the Nielsen Global Consumer Confidence Survey The Nielsen Global Consumer Confidence Survey was conducted between November 10 and November 28, 2010 and polled over 29,000 consumers in 52 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America about their confidence levels and economic outlook. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ?0.6%. Click for photo release at www.thaipr.net

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