Company Profile: Phatra Securities Public Company Limited

Background Phatra Securities Public Company Limited, (the “Company”), is one of the leading securities companies in Thailand with respect to investment banking business and the provision of brokerage services to institutional customers. Historically, the Company was the securities business department of Phatra Thanakit Finance and Securities Public Company Limited (“Phatra Thanakit”). In 1997, the government declared a policy of separating finance and securities businesses, as a result, the Company was established under the name of “Phatra Securities Company Limited”. In 1998, Phatra Thanakit Finance Public Company Limited, which had held 99.9% of the Company’s shares, sold 49.0% of the Company’s shares to KASIKORNBANK Public Company Limited and another 51.0% to Merrill Lynch, which is one of the world’s leading financial institutions. In December 2003, KASIKORNBANK Public Company Limited and Merrill Lynch sold their respective shareholdings in the Company to a group of management and employees of the company. The Company is licensed to carry out 5 types of securities businesses, namely securities brokerage, securities dealing, underwriting, investment advisory and securities lending and borrowing businesses. Types of Business At present, the Company’s core business is divided into 3 businesses, which are as follows: 1. Securities Brokerage Business. The Company provides brokerage services to both domestic and international institutional investors and High Net Worth Individuals. In 2004, the Company was ranked sixth in terms of market share which was equal to 3.99% of the SET’s total trading value and have approximately 10.0% of the SET’s total trading value with respect to institutional customers. 2. Investment Banking Business. The Company provides investment banking services in form of financial advisory and underwriting services to large Thai organizations both in the public and private sectors. Examples of the Company’s past experience include the underwriting of securities for PTT Public Company Limited, KASIKORNBANK Public Company Limited, Thai Airways International Public Company Limited, Thai Oil Public Company Limited, Airports of Thailand Public Company Limited, C.P. Group of Companies and Shinnawat Group of Companies. 3. Investment Business. During the second half of 2004, the Company re-established two departments which are responsible for managing its own investment activities, namely, the Proprietary Trading Department and the Direct Investment Department. These businesses, which were operated by the Company when it was part of Phatra Thanakit, were discontinued during the period where Merrill Lynch was a major shareholder of the Company. The Proprietary Trading Department makes short-term investments of not more than 1 year in equity and equity-linked securities listed on the SET, while the Direct Investment Department invests in assets, including listed and non-listed securities, with an investment period of 1-5 years. Moreover, the Company has a Research Department, which has been internationally recognized by both international and local institutional investors Currently, the Company produces macro-economic and equity research publications covering 58 Thai corporates listed on the SET with the total value exceeding 70% the SET’s market capitalization. In addition to producing its own research, the Company also produces co-authored research with Merrill Lynch and distributes to the investors. In addition, the Company distributes Merrill Lynch Non –Thai research on global economic and regional industrial conditions which provides benefit to the Company’s clients. The Company’s Research Department was awarded for both researches and analysts. Strengths of the Company - The Company provides a diversified range of financial services both in securities brokerage and investment banking. The Company’s distribution platform provides it with the ability to secure international and local institutional clients for corporates who approach the Company with investment banking business. The Company also provides useful information and analysis through its research, including Roadshow and Investor Forum. The Company believes that there is a limited number of securities firms that can provide the same services as the Company does. - The Company is recognized by its clients both domestically and internationally as the leading underwriter of equity offerings by leading Thai corporates. The Company has lead-managed 9 of the10 largest ever IPOs in Thailand and acted as the underwriter in 5 of the 12 Thai equity offerings with the offering value exceeding Baht 4,000.0 million over the past three years. - The Company offers a genuine combination of international business practices and investors network with local experience, knowledge and expertise. Historically, the Company had had co-operation with many of the world’s lending financial institutions namely SG Warburg, Goldman Sachs and the latest, Merrill Lynch. The Company has been able to combine such international knowledge, standards of business practice and its distribution network with its local securities experience, knowledge and expertise. These have allowed the Company to develop its leading market position in securities businesses domestically. - The Company provides internationally recognized research in both macro economic research and equity research. In addition, The Company’s Research Department received a number of awards for the quality of its research publications and its particular analysis. Such researches plays significant role in supporting investment banking and brokerage businesses. - The Company has an experienced management team and high quality staffs. The management team of the Company has more than 20 years experience in the securities business. This has been key in securing and maintaining long term relationships with its clients. In addition, the Company’s management is supported by a high quality staff, that has been key in enabling it to provide suitable financial products and to maintain international standard services to satisfy client’s needs. Goals and Business Strategies The principal objective of the Company is to be the leader in Thailand in all the core businesses that the Company provides and to be the first choice of customers in those businesses. The Company intends to achieve these objectives by focusing on the following: - The Company will continue to focus on providing investment banking service for large size high value transaction. With a strong anticipated pipeline of large Thai equity offerings over the next two years, the Company will continue to seek to secure these roles and is confident that its distribution network and market leading position will enable it to obtain underwriting mandates of many large Thai equity offerings in the future. - The Company retains flexibility when providing its services to consider revenue opportunities across business lines which is suitable to its clients who may be small, medium or large corporates. As a result, this flexibility will provide opportunities to increase its income across the businesses. - The Company will seek to expand its private client business in order to increase its income. The Company will employ additional financial consultants to able to serve more High Net Worth Individuals. The Company will also expand its business to cover retail customers by introducing an Internet trading system, which is expected to be launched by the third quarter of 2005. - The Company will develop its direct investment business. The Company will use its expertise and knowledge of the capital markets to identify undervalued companies, both listed and non-listed, that are suitable for direct investment. Any investments made will be in accordance with the strict guidelines set out by the Company’s investment committees and will be subject to, inter alia, minimum rates of return and other investment criteria. - The Company will continue to identify complementary business lines. The Company may enter into the securities borrowing and lending business, derivatives business and fund management business for expanding its businesses and increasing its business opportunities. - The Company will continue to attract and retain a qualified workforce. The Company is aware that its workforce is its most valuable asset and has consistently focused on retaining staff, which is evidenced by the average tenure of its senior and key staff. The Company intends to continue to seek to recruit the best people in the securities business to work with the Company and will continue to encourage long term staff loyalty by providing competitive packages in terms of compensation and other benefits, the prevailing working culture and extensive training programmes in all departments. Revenue Structure Type of Income 2002 2003 2004 Baht % Baht % Baht % Million Million Million Brokerage Fee from -Domestic Institutional Investors 67.2 9.0 109.0 6.7 201.5 12.1 -International Institutional Investors 293.1 39.4 444.6 27.2 520.8 31.2 - High Net Worth Individuals 90.0 12.1 226.2 13.9 291.4 17.5 Total Brokerage Fees 450.2 60.5 779.8 47.7 1,013.7 60.8 Fees and Services Income - Underwriting Fees 94.9 12.7 695.3 42.6 399.4 23.9 - Advisory Fees 127.0 17.1 119.0 7.3 218.7 13.1 Total Fees and Services Income 221.9 29.8 814.3 49.9 618.1 37.0 Other Income 72.6 9.7 39.8 2.4 36.2 2.2 Total Income 744.7 100.0 1,633.9 100.0 1,668.0 100.0 Awards - Investment Banking Department Grantor Year Type of award Finance Asia Magazine 2000 Best Domestic Investment Bank in Thailand 2001 Best IPO of the Year (in the case of PTT Public Company Limited) 2002 Best Foreign Investment Bank in Thailand 2004 Best Investment Bank and Best Equities House in Thailand Best IPO and Best Privatization in Thailand (in the case of Thai Oil Public Company Limited) Best Equity Deal (in the case of Thai Oil Public Company Limited) Best Thailand Deal (in the case of Thai Oil Public Company Limited) Euromoney Magazine 2000 Best Foreign Bond House in Thailand 2001 Best Equity House in Thailand 2002 Best Equity House in Thailand 2004 Best Equity House in Thailand The Asset Magazine 2001 Best IPO of the Year (in the case of PTT Public Company Limited) 2003 Best Domestic Investment Bank in Thailand 2004 Best Domestic Merger and Acquisition (in the case of merger of Thai Military Bank Public Company Limited, DBS and IFCT) Best Domestic Investment Bank in Thailand Best IPO (in the case of Thai Oil Public Company Limited) Money & Banking Magazine 2002 Excellence as financial advisor (in the case of PTT Public Company Limited) SET 2004 Best financial advisor for Newly Listed Company of the Year (in case of Thai Olefins Public Company Limited) - Research Department Grantor Year Type of award Asiamoney Magazine 2000 Best research firm in Thailand Best Country Analysts - Dr. Supavud Saicheua Best macroeconomics research in Thailand 2001 Best overall country research in Thailand Best analyst in Thailand - Dr. Supavud Saicheua Best macroeconomics research in Thailand 2002 Best overall country research in Thailand Best macroeconomics research in Thailand 2003 Best macroeconomics research in Thailand Institutional Investor Magazine 2000 2nd place for Best Research Team in Thailand 2001 First-team winner for Thailand country research 2004 4th place for Best Research Team in Thailand SET 2004 Best Research House of the Year – Institutional Clients End.

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