CORPORATE PRESENTATION SEPTEMBER 2018 AGENDA MKET MAYBANK - PowerPoint PPT Presentation

CORPORATE PRESENTATION SEPTEMBER 2018

AGENDA MKET MAYBANK FINANCIAL OVERVIEW GROUP HIGHLIGHTS 2 STRICTLY PRIVATE AND CONFIDENTIAL

#1 BROKER IN THAILAND FOR MAYBANK KIM ENG THAILAND THE PAST 15 OVERVIEW CONSECUTIVE YEARS 3 STRICTLY PRIVATE AND CONFIDENTIAL

MAYBANK KIM ENG THAILAND #1 BROKER FOR 17 YEARS RUNNING F I T C H R AT I N G S S T R O N G F I N A N C I A L H E A LT H B R O A D E S T N E T W O R K AA+ Rating on par 45 Assets (THB mn) with BBL, KBANK, Equity (THB mn) KTB and SCB 20,612 19,692 18,924 17,989 16,802 Updated on 2 May, 2018 14,684 13,973 9,034 7,166 2 0 1 8 A C C O L A D E S 5,275 4,637 4,420 4,517 4,496 4,818 4,914 4,655 4,660  Asset Triple A Asia Infrastructure Awards Branches 2018, TPIPP as Renewable Energy Deal of the Year 2018 Q22018 Best Broker of Southeast Asia for the year  (2015-2017), Alpha Southeast Asia 28  Best Securities Company of the year 2017 by  Solid net capital ratio of 31.74% Money & Banking Magazine – June 2017  Sufficient placement ability for underwriting IPO  Best Retail Broker in Thailand (2007-2016), Alpha Southeast Asia  Best Institutional Broker in Thailand (2007- 2016), Alpha Southeast Asia R A N K E D # 2  Best Securities Company of the Year 2015, Branches In Bangkok Money & Banking Magazine DBSV  Best Retail Broker- Finance Asia (2014-2015) MBKET 5.97 & The ASEAN Banker (2015) AWS 5.74 17 CLSA 5.40 Best Brokerage House for Thailand, The Asset  CGS-CIMB 5.30 BLS 4.78 Triple A Awards 2012- 2015 PHATRA 4.49  TFEX Best Award (2011), Alpha Southeast Asia CS 4.28 YUANTA 4.04  SET Awards 2011- Outstanding Securities FSS 4.02 Company SCBS 3.62 UBS 3.47  SET Awards 2011- Outstanding Derivatives TNS 3.16 KGI House 3.10 KS 2.98  Best Broker in Thailand (2010), Finance Asia JPM 2.81 Branches In Up-country MACQ 2.54  Best Research House for Retails (2007-2008), TISCO 2.45 SAA ASPS 2.37 KSS 2.29  Best Analyst in Energy and Petrochemicals for Retail Investors (2008), SAA Branches as of 30 JUN, 2018 Best Medium & Small Cap. Analyst for Retail  Investors (2007), SAA  Best Medium & Small Cap. Analyst for 4 STRICTLY PRIVATE AND CONFIDENTIAL Institutional Investors (2007), SAA

Fitch Ratings : AA+(tha) Thailand Credit Analysis Update as of 2 nd May, 2018 Key Rating Drivers AA+(tha) Institutional Support Driven Ratings: Fitch Ratings believe there to be a high probability that Malayan Ratings Banking Berhad (Maybank, A-/Stable/F2) will extend extraordinary support to Maybank Kim Eng Securities (Thailand) Public Company Limited (MBKET) when needed. MBKET’s National Rating reflect such support from Maybank Kim Eng Securities (Thailand) Plc its ultimate parent Maybank and highlight Maybank’s ability and propensity to support its 83.5%-owned Thai National Long-Term Rating AA+(tha) subsidiary. Short-Term Rating F1+(tha) Strategically Important Subsidiary: Fitch deems MBKET a strategically important subsidiary of Maybank, Outlook whose control extends to operations, branding and senior management. Thailand has the second-largest GDP National Long-Term Rating Stable in south-east Asia, and remains a key brokerage market for the group. MBKET has generally succeeded in supporting the group’s objective in Thailand. In turn, Maybank shares its know -how with MBKET, and allows access to some of the group’s shared banking facilities. Financial Data Maybank Kim Eng Securities (Thailand) Plc Regional Support Underpins Franchise : MBKET’s securities franchise benefits from plenty of regional support, which is crecial to the firm’s goal of reaching out to foreign institutions in finding new brokerage (Consolidated) 31 Dec 17 31 Dec 16 clients. MBKET has the ability to navigate profitability challenges in an increasingly fragmented industry. Total Assets (USDm) 579.4 468.9 MBKET draws on regional expertise to undertake initiatives in research, investment banking and wealth Total Assets (THBm) 18,924.1 16,802.6 management to strengthen its domestic franchise. Total Equity (THBm) 4,655.0 4,914.4 Net Income (THBm) 638.6 974.5 Credit Risks Remain Low : M BKET’s historically low NPL ratio provide evidence of the firm’s generally Operating profit/ 16.7 25.1 prudent controls. However, asset-quality risks may heighten if the pace of margin-loan expansion quickens in average equity (%) Net Income/ 13.4 20.0 2018. average equity (%) Equity/Assets (%) 24.6 29.3 Brokerage Challenges Lie Ahead : Fitch expects MBKET’s brokerage business to remain under pressure even as MBKET steps up efforts to boost institutional volume. The brokerage business has been on a rocky road Analysts over the past few years as aggressive new players have been rapidly expanding their market presence. The Jackerin Jeeradit +66 2 108 0163 expansion has intensified competition in the large retail segment, and reduced the availability of skilled staff. Jackerin.jeeradit@fitchratings.com As a result, MBKET’s market share dropped further – to 6.1% of the brokerage industry to 1Q18 (2010 : 12.8%). Thanasit Utamaphethai Earning Pressure Persists : Fitch expects structural challenges in Thailand’s securities industry to further +66 2 108 0154 reduce MBKET’s operating profit/average equity ration from 16.7% in 2017. Brokerage contributes nearly 60% Thanasit.utamaphethai@fitchratings.com of total revenue, but commission rates are likely to continue to fall, albeit more gradually. The agency nonetheless expects MBKET to remain profitable through the cycle, and able to support the group’s objectives over the medium term.

Fitch Ratings : MBKET is same rating level as BBL, KBANK, KTB and SCB Long-Term Ratings Bank / Securities AAA Bank of Ayudhya Bangkok Bank AA(tha) AA+ Kasikorn Bank AA(tha) Krung Thai Bank Maybank Kim Eng Securities Siam Commercial Bank CIMB Thai Bank Capital Nomura Securities AA Kasikorn Securities SCB Securities Yuanta Securities AA- CGS-CIMB Securities (Thailand) Thanachart Bank A+ TMB Bank A TCAP A- Asia Plus Group Holdings

MAYBANK KIM ENG THAILAND OUR NETWORK 1 OUR OFFSHORE MARKETS Online Markets Offline Markets USA Canada Singapore Switzerland Hong Kong UK Malaysia France 208,350 Germany Norway Japan Vietnam Retail Accounts Indonesia 45 South Korea Australia 1 Updated as of December 2016 Branches Around The Country WE ARE THE LARGEST RETAIL BROKERAGE NETWORK IN THAILAND 7 STRICTLY PRIVATE AND CONFIDENTIAL

MAYBANK KIM ENG THAILAND OUR BUSINESS OVERVIEW Number of Accounts Dec-16 Dec-17 % Change Jun -18 % Change MKET At the end of June  BROKERAGE 2 2018, MKET had 208,344 BUSINESS equity accounts and 13,510 Total Equity Account 208,344 179,321 203,391 13.42% 2.44% futures accounts.  42.27% were internet 51% 88,070 Internet Account 81,144 86,252 6.29% 2.11% accounts, 1.89% were margin Retail accounts and the rest 36.71% Credit Balance Accounts were cash accounts. 3,946 3,632 3,809 4.87% 3.60% Account  36.71% of equity accounts and 15.25% of futures 76,475 Cash Account 94,545 100,109 5.89% (23.61%) accounts were active accounts. 39% 13,510 Futures Account 12,605 13,221 4.89% 2.19% Foreign Accounts Number of Dec-16 Dec-17 % Change Jun 18 % Change Outstanding loans on margin  Active Accounts accounts at the end of June 10% Total Equity Account 2018 totaled Baht 12,997 78,676 76,209 (3.14%) 74,159 (2.69%) million. Local Institutional Short sell value Y-T-D June  Internet Account 37,283 34,362 (7.83%) 33,149 (3.53%) Accounts 2018 totaled Baht 7,944.05 million. Credit Balance 1,579 1,488 (5.76%) 1,494 (0.40%) Account  There was no default on MKET margin Cash Account 39,814 38,279 (3.86%) 31,290 (18.26%) accounts Futures Account 2,590 2,080 (19.69%) 2,060 (0.96%) 2 Updated as of Q2/2018 8 STRICTLY PRIVATE AND CONFIDENTIAL

MAYBANK KIM ENG THAILAND OUR BUSINESS OVERVIEW MKET's Derivatives Volume and Market Share (%) 2Q2017 - 2Q2018 MKET DERIVATIVES BROKERAGE 2,300,000 8% BUSINESS 2,039,614 1,918,969 1,903,785 1,821,050 1,739,547 Volume (Contracts) 1,800,000 Market Share (%) Among 42 TFEX member brokers, MKET  6% ranked #11 by derivatives trading volume 5.44% in 2Q2018. MKET’s derivatives trading 1,300,000 volumes come from servicing retail 4.45% 4% clients, foreign institutions, local 4.04% institutions and from proprietary trading. 800,000 3.61% 3.36% Since TFEX commenced trading on April  2% 2006, MKET has earned the customers’ 300,000 derivatives account 13,587 accounts. Trading channels cover both sending 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 orders through marketing officers and (200,000) 0% customer trading through the internet. MKET has the largest number of marketing  In 2Q2018, MKET’s Brokerage fee from Derivatives Business was 40.40 officers 482 derivatives sales persons - million Baht compared to 30.40 million Baht in 2Q2017, representing spreading across 45 branches (excluding the revenue increase of 32.89% . MKET’s average daily volume increased Head Office) throughout the country. from 28,992 contracts in 2Q2017 to 31,730 contracts in 2Q2018, representing an increase by 9.44% . In 2Q2018, MKET ranked No .11 in term of market shares that accounted for 3.61% of the total volume in derivatives market. 9 STRICTLY PRIVATE AND CONFIDENTIAL