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Jasa MargaJanuary 5, 2012

2

PEER COMPARISON

Research CoverageBloomberg Code Market Recommendation Mkt Cap US$m Price Target Price Upside

Jasa Marga JSMR IJ ID OUTPERFORM 3,253 4,375 5,500 25.7%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Rolling P/BV (x)

Jasa Marga

0

5

10

15

20

25

30

35

40

45

50

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Rolling FD Core P/E (x)

Jasa Marga

0%

3%

5%

8%

10%

13%

15%

18%

20%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Peer Average: P/BV vs Recurring ROE

Rolling P/BV (x) (lhs) Recurring ROE (rhs)

-60%

-38%

-16%

6%

28%

50%

72%

94%

116%

138%

160%

0

5

10

15

20

25

30

35

40

45

50


Peer Average: FD Core P/E vs FD Core EPS Growth

Rolling FD Core P/E (x) (lhs) FD Core EPS Growth (rhs)

ValuationFD Core P/E (x) P/BV (x) EV/EBITDA (x)

Dec-10 Dec-11 Dec-12 Dec-10 Dec-11 Dec-12 Dec-10 Dec-11 Dec-12

Jasa Marga 25.27 20.46 19.58 3.84 3.51 3.26 14.53 12.50 12.11

Growth and ReturnsFD Core EPS Growth Recurring ROE Dividend Yield

Dec-10 Dec-11 Dec-12 Dec-10 Dec-11 Dec-12 Dec-10 Dec-11 Dec-12

Jasa Marga 32.4% 23.5% 4.5% 15.8% 17.9% 17.2% 2.00% 2.37% 2.93%

SOURCE: CIMB, COMPANY REPORTS

Calculations are performed using EFA Monthly Interpolated Annualisation and Aggregation algorithms to December year ends

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In line with recently

announced FY11 revenue of

Rp4.9tr. Tariff hikes in 4Q11

should have been

responsible, among others

75% probability for therealisation of capex in 2012,

going by history

Share price infoShare px perf. (%) 1M 3M 12M

Relative 11.7 0.4 20.2

Absolute 15.1 19.9 24.1

Major shareholders % held

Indonesian Government 70

0%

3%

5%

8%

10%

13%

15%

18%

20%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0


P/BV vs Recurring ROE

Rolling P/BV (x) (lhs) Recurring ROE (rhs)

-50%-25%0%25%50%75%100%125%150%175%200%

05

101520253035404550

Jan-07 Jan-08 Jan -09 Jan-10 Jan-11 Jan-12

FD Core P/E vs FD Core EPS Growth

Rolling FD Core P/E (x) (lhs) FD Core EPS Growth (rhs)

Profit & Loss(Rpb) Dec-09A Dec-10A Dec-11F Dec-12F Dec-13F

Revenue 3,692 4,379 4,964 5,327 6,235

Cost Of Sales (1,528) (1,647) (1,793) (1,897) (2,229)

Gross Profit 2,164 2,732 3,171 3,430 4,006

Total Operating Costs (647.8) (743.8) (772.6) (848.8) (932.2)

Operating Profit 1,516 1,988 2,398 2,581 3,074

Operating EBITDA 1,871 2,413 2,817 3,044 3,551

Depreciation And Amortisation (354.5) (424.9) (419.2) (463.4) (477.7)

Operating EBIT 1,516 1,988 2,398 2,581 3,074

Net Interest Income (445.5) (532.1) (548.0) (588.7) (478.1)

Exchange Gains - - - - -

Other Income 23.13 20.21 0.00 0.00 0.00

Associates' Profit - - - - -

Profit Before Tax (pre-EI) 1,094 1,476 1,850 1,992 2,596

Exceptional Items 125.0 0.0 0.0 0.0 0.0

Pre-tax Profit 1,219 1,476 1,850 1,992 2,596Taxation (211.7) (291.9) (401.0) (469.7) (588.5)

Profit After Tax 1,007 1,184 1,449 1,523 2,007

Minority Interests (14.51) 8.99 4.85 (3.09) (35.55)

Net Profit 993 1,193 1,454 1,520 1,972

Recurring Net Profit 889 1,177 1,454 1,520 1,972

Cash Flow

(Rpb) Dec-09A Dec-10A Dec-11F Dec-12F Dec-13F

Pre-tax Profit 1,219 1,476 1,850 1,992 2,596

Depreciation And Non-cash Adj. 800 957 967 1,052 956Change In Working Capital (23.5) (67.7) 128.4 2.5 4.0

Tax Paid 211.7 291.9 401.0 469.7 588.5

Other Operating Cashflow (793) (980) (1,439) (1,214) (1,564)

Cashflow From Operations 1,414 1,677 1,908 2,302 2,580

Capex (1,597) (1,981) (1,192) (2,758) (2,071)

Disposals Of FAs/subsidiaries - - - - -

Acq. Of Subsidiaries/investments 0.00 43.83 0.00 0.00 0.00

Other Investing Cashflow 177.5 12.5 0.0 0.0 0.0

Cash Flow From Investing (1,420) (1,925) (1,192) (2,758) (2,071)

Debt Raised/(repaid) 351 1,557 (6) 970 (280)

Equity Raised/(Repaid) - - - - -

Dividends Paid (381.5) (656.8) (706.3) (872.5) (911.8)

Net Cash Interest - - - - -

Other Financing Cashflow (26.68) 45.15 0.00 0.00 0.00

Cash Flow From Financing (57) 945 (712) 97 (1,192)

Total Cash Generated (63.2) 697.6 3.3 (358.5) (682.4)

Change In Net Cash (414) (859) 9 (1,328) (402)

Free Cashflow To Equity 345 1,309 710 514 229

BY THE NUMBERS


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The company should start

leveraging in 2012, by a

modest Rp1tr

Balance Sheet

(Rpb) Dec-09A Dec-10A Dec-11F Dec-12F Dec-13F

Fixed Assets 11,507 13,695 14,467 16,762 18,355

Intangible Assets 385.3 499.3 499.3 499.3 499.3

Other Long Term Assets 851.9 668.2 668.2 668.2 668.2

Total Non-current Assets 12,744 14,862 15,635 17,930 19,522

Total Cash And Equivalents 3,314 4,012 3,847 3,170 2,388

Inventories - - - - -

Accounts Receivable 64.7 23.6 81.4 87.4 102.4

Other Current Assets 51.66 54.92 54.92 54.92 54.92

Total Current Assets 3,430 4,090 3,984 3,312 2,546

Trade Creditors 103.7 130.3 59.8 63.2 74.3

Short-term Debt 2,183 1,439 164 414 1,133

Other Current Liabilities 679.2 908.6 908.6 908.6 908.6

Total Current Liabilities 2,966 2,478 1,132 1,385 2,116

Total Long-term Debt 4,586 7,258 8,528 9,247 8,247

Other Liabilities 467.1 452.6 452.6 452.6 452.6

Deferred Tax 409.8 404.0 404.0 404.0 404.0

Total Non-current Liabilities 5,462 8,114 9,384 10,104 9,104

Shareholders' Equity 7,183 7,740 8,488 9,135 10,195

Minority Interests 562.1 619.5 614.6 617.7 653.2

Preferred Shareholders Funds

Total Equity 7,745 8,359 9,102 9,753 10,848

Key Drivers

Dec-09A Dec-10A Dec-11F Dec-12F Dec-13F

Avg daily traffic grth (%, main) 3.8% 3.8% 7.0% 1.8% 3.6%

Base tollrate/km (% chg, main) N/A N/A N/A N/A N/A

Base tollrate/vehicle (%chg, main) 5.4% 14.2% 6.1% 5.4% 13.1%

Avg daily traffic grth (%, 2ndary) N/A N/A N/A N/A N/A

Base tollrate/km (% chg, 2ndary) N/A N/A N/A N/A N/A

Base tollrate/vehicle (%chg, 2ndary) N/A N/A N/A N/A N/A

Avg daily traffic grth (%, tertiary) N/A N/A N/A N/A N/A

Base tollrate/km (% chg, tertiary) N/A N/A N/A N/A N/A

Base tollrate/vehicle (%chg, tertiary) N/A N/A N/A N/A N/A

BY THE NUMBERS

Key Ratios

Dec-09A Dec-10A Dec-11F Dec-12F Dec-13F

Revenue Growth 10.1% 18.6% 13.4% 7.3% 17.0%

Operating EBITDA Growth 9.9% 29.0% 16.8% 8.1% 16.6%

Operating EBITDA Margin 50.7% 55.1% 56.8% 57.2% 57.0%

Net Cash Per Share (Rp) (508) (689) (712) (955) (1,028)

BVPS (Rp) 1,056 1,138 1,248 1,343 1,499

Gross Interest Cover 2.04 2.60 3.50 4.17 5.06

Tax Rate 17.4% 19.8% 21.7% 23.6% 22.7%

Net Dividend Payout Ratio 35.6% 49.9% 48.6% 57.4% 46.2%

Accounts Receivables Days 4.78 3.68 3.86 5.80 5.56

Inventory Days - - - - -

Accounts Payables Days 18.06 25.93 19.35 11.86 11.26

ROIC (%) 11.1% 12.3% 13.1% 12.4% 13.3%

ROCE (%) 13.3% 14.1% 14.5% 14.0% 16.2%


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Opening the way1. OUTLOOK

1.1 Road growth of 32% by 2015Upon the completion of its nine projects by 2015/16, Jasa Margas toll assetscould lengthen by 32% to 763km of the total roads under operation. The newland law has substantial ramifications for Jasa Marga, whose projects are in theprocess of acquiring land (70% of total length). Jasa Marga is negotiating withthe government for financial support for Stage 2 development of Semarang-Solo.

This will comprise 49.5km of new roads of 68% of the total new roads in theSemarang-Solo section.

Figure 1: Jasa Margas toll-road evolution

410 410 410448 448 448 463 463 463

481

536 536 536 536 545 555581 581 581 581 581

10

159

272

0

100

200

300

400

500

600

700

800

900

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

km

Jasa Marga existing operation Jasa Marga new project

SOURCES: CIMB, COMPANY REPORTS

1.2 ConstructionJasa Marga has a number of projects set for groundbreaking: three in 4Q11, two

in Jan 12 and potentially two more in 2012. According to our calculations, atleast Rp8tr worth of contracts have started construction at end-2011 or couldstart in 2012.

Table of Contents1. OUTLOOK p.5

2. VALUATION AND RECOMMENDATION p.9

Notes from the Field

The land acquisition lawstates, more clearly anddecisively, that thegovernment is obliged to

provide land.

Frans Sunito, CEO

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Figure 2: 2012 construction

Operating

Underconstruction Undeveloped

Semarang Solo Stage 1 Section 2 14.1 12.5 49.6 3Q13 Ground breaking Nov11

Gempol-Pasuruan Section 1 - 13.9 20.3 1Q14 Start 1Q12

Bogor Ring Road Section 2A 3.8 2.0 5.2 1Q14 Start Jan12

Nusa Dua Benoa - 9.7 9.7 2013 Started cons truction Dec11

JORR W2 - 7.6 7.6 2013 Started cons truction Oct11

Surabaya-Mojokerto Section 4 2.3 18.5 15.5 2013 Potentially starting construction 2012

Gempol-Pandaan Section 1 - 3.0 10.6 1Q14 Potentially starting construction 1Q12

Length (km)

Project

Operation

date Notes

0 SOURCES: CIMB, COMPANY REPORTS

1.3 Single operator

Jasa Marga has ongoing cost-management programmes such as zero employeegrowth and early retirement plans. Longer term, we believe it will continue toconsolidate toll-road sections where it has market leadership of networks.

Jasa Marga has the largest market share of close to 75% (50% by 2015,assuming the completion of Trans Java and JORR 2). It has also been acquiringnew projects that are adjacent to its existing projects. Jasa Marga is also knownto have minority shares in several operating toll-road sections all over thenation.

Trans Java. Jasa Marga is responsible for two projects in the Trans Javanetwork (20% market share) that are in various project stages. It had deliveredthe first section of Semarang-Solo and Surabaya-Mojokerto in 2011. The lattercontributed to 9M11 revenue. Surabaya-Mojokerto is in a much more advanced

stage being a shorter toll road and is set for completion in 2014. Semarang-Solois still the subject of discussions, particularly for its second stage. Feasibility willrequire government support. Jasa Marga is negotiating for Rp2tr of capitalinjection by the government for the remaining 49.5km of the toll road.

Figure 3: Trans Java network

1. CikampekPalimanan

(116km) Investor:PLUS

Expressway(55%)

2. PalimananKanci(28.8km

Operate1998)

Investor:JasaMarga(100%)

3. KanciPejagan(35km

operate2010)

Investor:BakrieTollRoad

4. PejaganPemalang

(57.5km)


5. Pemalang Batang

(39km)


6. BatangSemarang(75km)


(potential)

7A. SemarangBawen(23km

Operate2011)

Investor:JasaMarga(60%)

7B. BawenSolo(49km)

Investor:Jasamarga

(60%)

8. SoloKertosono

(118km)

Investor:Thiess

9. KertosonoMojokerto

(41km)

Investor:Astratel

10. Surabaya

Mojokerto(34km

Operate1stsection

2011)

Investor:JasaMarga

(55%)

SOURCES: CIMB, BJPT

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Greater Surabaya. Jasa Marga is building a toll road adjacent to its Surabayatoll network. It has operated Surabaya Gempol for 27 years and will add twoextensions in the fork: Gempol-Pandaan and Gempol-Pasuruan. Both will be

under construction in 2012. Groundbreaking for Gempol-Pandaan should takeplace in Jan 12.

JORR 2. Two of Jasa Margas toll sections in JORR 2 are set for operation in1H14, assuming 1.5 years of construction, with a total length of 26.4km. At thecurrent pace of land acquisition and taking into account the new land law, thetwo sections should finish land clearing by 3Q12 and directly start constructionthereafter.

Figure 4: JORR 2 network

2.KunciranSerpong

(11.2km)Investor:JasaMarga

andAstratel

3.SerpongCinere

(10.1km)

Investor:ThiessWaskita

1.Kunciran

Cengkareng (15.2km)

Investor:JasaMarga

4.Cinere Cimanggis

(14.7km)

Investor:Kompas

Waskita

5.Cimanggis

Cibitung(25.4km)

Investor:BakrieToll

Road(potential)

6.Cibitung

Cilincing(34.5km)

Investor:MTD

7.TjPriokAcess(12km)

Investor:Departmentof

PublicWorks

SOURCES: CIMB, BJPT

There are several other projects in the Trans Java and JORR 2 networks thatinterest Jasa Marga. However, with the current pipeline, we think acquisitionswill happen later than sooner unless the government intervenes, such as inTrans Java.

1.4 More to come after 2015We think Jasa Margas premium should continue after 2015 considering thenumber of projects that the government is offering. Aside from Trans Java andJORR 2, the government has announced 2,000 km of toll roads for Sumateraand Kalimantan (not included in the table below). Combined with balance-sheetcapability, we believe Jasa Marga will continue to acquire new projects.

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Figure 5: Jasa Marga has yet to announce any intention to participate in the following projects

Length

(Rpbn) (US$m) (km) Investment tender

Land acquisition

process

Priority project Medan-Kualanamu 1,350 150 18 Project award

As of Dec11 is on financial

closing process

Palembang-Indralaya 1,053 117 22 Tender preparation

Tegineneng-Babatan 2,727 303 50 Tender preparation

Medan-Binjai 1,293 144 16 Tender preparation

Cileunyi-Dawuan 5,102 567 59 Tender preparation

PPP project with soft loan from

China

Sukabumi-Ciranjang 1,856 206 28 Tender preparation

Pasirkoja-Soreang 1,022 114 15 Tender preparation Finalized in 2011

Pandaan-Malang 2,528 281 38 Tender preparation Ongoing

Kemayoran-Kampung Melayu 6,954 773 10

Sunter-Batu Ceper 9,761 1,085 23

Ulujami-Tanah Abang 4,255 473 8Ps. Minggu-Casablanca 5,720 636 10

Sunter-Tembelang 7,378 820 26

Duri Pulo-Kampung Melayu 5,960 662 11

Terusan Pasteur-Gedebage 6,917 769 27

Potential project Pekanbaru-Dumai 8,446 938 135 Govt proposal

Manado-Bitung 5,612 624 46 Govt proposal

Kisaran-Bukit Tinggi 5,280 587 60 Feasibility study

Bukit Tinggi-Padang 10,230 1,137 55 Feasibility study

Terbanggi Besar-Pematang Panggan 5,780 642 100 Feasibility study

Bakauheni-Terbanggi Besar 8,200 911 1,000 Feasibility study

Cilegon-Bojonegara 920 102 16 Feasibility study

Kamal-Batu Ceper 3,590 399 32 Feasibility study

Gede Bage-Majalaya 900 100 13 Feasibility study

Semarang-Demak 296 33 24 Feasibility study

Yogyakarta-Bawen 6,085 676 104 Feasibility study

Yogyakarta-Solo 2,330 259 40 Feasibility study

Bandara Juanda-Tj. Perak 5,030 559 23 Feasibility study

Probolinggo Banyuwangi 8,000 889 170 Feasibility study

Batu Ampar-Bandara Hang Nadim 2,200 244 25

Tota l 136,773 15,197 2,203

Fit and proper evaluation; Govt

endorsed

Link

Investment cost Status

Remarks

Invesment Tender

The project is of high interest

from Jakarta municipal Govt.

Most likely will create aconsortium to handle Rp40tr

work with Jaya Real and Jaya

Konstruksi (JRPT and JKON)

Tender preparation

at feasibility study

SOURCES: CIMB, BJPT

1.5 Working up the balance sheetThe company should start to gear up significantly in 2012 for constructionworking capital. It may need to spend at least Rp4.2tr in 2012 (21% of its assets),assuming construction is divided evenly between 2012 and 2013. With DER of70% per project, it may have to raise Rp2.7tr annually in 2012/13, bringing itsgearing to 1x and 1.3x respectively (9M11: 0.6x).

2. VALUATION AND RECOMMENDATION

2.1 Premiums justifiedWe are keeping our forecasts for FY11-12 and adjusting for higher debt in 2013.We are keeping our DCF target price as we have started including new toll roadsin Bali from 2014 onwards. The project has one of the better IRRs, based on ourcalculations, due to its higher tariff base.

The company is trading at 17x P/E CY12 vs. regional peers 9.8x. We believe thepremium is justified by growth prospects. Our current 5-year net-profit CAGRestimate is 24% (FY11-16) vs. 9% for selected regional players.

Our target price is derived from DCF valuation after applying a discount of 45%to NPV. We may remove this discount upon the completion and operation of itsprojects, as risks dwindle.

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Figure 6: Growth to accelerate in 2015/16

0.75 0.97 0.80 0.58 0.38

20.4619.58

15.09

11.76

9.79

0.00

0.20

0.40

0.60

0.80

1.00

1.20

0

5

10

15

20

25

2011 2012 2013 2014 2015

PEG at current price (RHS) PER SOURCES: CIMB, COMPANY REPORTS

Figure 7: Sector Comparisons

Price Tgt Px Mkt Cap P/BV (x) Div. Yield (%)

(local curr) (local curr) (US$ m) CY2012 CY2013 CY2012 CY2012

Jasa Marga JSMR IJ Outperform 4,375 5,500 3,253 19.6 13.9 3.45 3%

Bangkok Expressways BECL TB NR 18.10 n.a. 443 9.8 8.1 0.70 7%

Average (all) 14.7 11.0 2.1 5%

Company Bloomberg Ticker Recom.Core P/E (x)

SOURCES: CIMB, BLOOMBERG

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of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person inwhole or in part, for any purpose without the prior written consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its possessionfor the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is directed at, or thecontents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong).

Indonesia: This report is issued and distributed by PT CIMB Securities Indonesia (CIMBI). The views and opinions in this research report are our own as of the date hereof and aresubject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to suchrecipient therein are unaffected. CIMBI has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the basis that it will remain confidential. Nopart of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other personin whole or in part, for any purpose without the prior written consent of CIMBI. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizenswherever they are domiciled or to Indonesia residents except in compliance with applicable Indonesian capital market laws and regulations.

Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (CIMB). The views and opinions in this research report are our own as of the date hereof and aresubject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to suchrecipient therein are unaffected. CIMB has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the basis that it will remain confidential. No partof this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in

whole or in part, for any purpose without the prior written consent of CIMB.New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the course of, and for the purposes of theirbusiness, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.

Singapore: This report is issued and distributed by CIMB Research Pte Ltd (CIMBR). Recipients of this report are to contact CIMBR in Singapore in respect of any matters arising from,or in connection with, this report. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act ofthe United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to update

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its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CIMBRaccepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. This publication is being supplied to you strictly onthe basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passedon, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR.

As of January 4, 2012, CIMB Research Pte Ltd does not have a proprietary position in the recommended securities in this report.

Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sellto any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden.

Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered withthe Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through apublic offering or in circumstances which constitutes an offer within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of theFinancial Supervisory Commission of the Republic of China.

Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (CIMBS). The views and opinions in this research report are our own as of the date hereofand are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to suchrecipient therein are unaffected. CIMBS has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the basis that it will remain confidential. Nopart of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other personin whole or in part, for any purpose without the prior written consent of CIMBS.

Corporate Governance Report:

The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the Office of the Securities andExchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed

to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based oninside information.

The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS doesnot confirm nor certify the accuracy of such survey result.

Score Range 90 100 80 89 70 79 Below 70 or No Survey Result

Description Excellent Very Good Good N/A

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United Kingdom: This report is being distributed by CIMB Securities (UK) Limited only to, and is directed at selected persons on the basis that those persons are (a) persons falling withinArticle 19 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the Order) who have professional experience in investments of this type or (b) high networth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order, (all such persons together being referred to as relevantpersons). A high net worth entity includes a body corporate which has (or is a member of a group which has) a called-up share capital or net assets of not less than (a) if it has (or is a

subsidiary of an undertaking which has) more than 20 members, 500,000, (b) otherwise, 5 million, the trustee of a high value trust or an unincorporated association or partnership withassets of no less than 5 million. Directors, officers and employees of such entities are also included provided their responsibilities regarding those entities involve engaging in investmentactivity. Persons who do not have professional experience relating to investments should not rely on this document.

United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB ResearchPte Ltd solely to persons who qualify as "Major U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only forInstitutional Investors and investment professionals whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities and whohave professional experience in such investments. Any person who is not an Institutional Investor must not rely on this communication. However, the delivery of this research report to anyperson in the United States of America shall not be deemed a recommendation to effect any transactions in the securities discussed herein or an endorsement of any opinion expressedherein. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc.

Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribtion to professional, institutional or sophisticated investorsas defined in the laws and regulations of such jurisdictions.

Recommendation Framework #1 *

Stock SectorOUTPERFORM: The stock's total return is expected to exceed a relevantbenchmark's total return by 5% or more over the next 12 months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, isexpected to outperform the relevant primary market index over the next 12 months.

NEUTRAL: The stock's total return is expected to be within +/-5% of a relevantbenchmark's total return.

NEUTRAL: The industry, as defined by the analyst's coverage universe, is expectedto perform in line with the relevant primary market index over the next 12 months.

UNDERPERFORM: The stock's total return is expected to be below a relevantbenchmark's total return by 5% or more over the next 12 months.

UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, isexpected to underperform the relevant primary market index over the next 12 months.

TRADING BUY: The stock's total return is expected to exceed a relevantbenchmark's total return by 5% or more over the next 3 months.

TRADING BUY: The industry, as defined by the analyst's coverage universe, isexpected to outperform the relevant primary market index over the next 3 months.

TRADING SELL: The stock's total return is expected to be below a relevantbenchmark's total return by 5% or more over the next 3 months.

TRADING SELL: The industry, as defined by the analyst's coverage universe, isexpected to underperform the relevant primary market index over the next 3 months.

* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand and Jakarta Stock Exchange. Occasionally, it is permitted for the total expected

returns to be temporarily outside t he prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

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Recommendation Framework #2 **

Stock Sector

OUTPERFORM: Expected positive total returns of 15% or more over the next 12months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has ahigh number of stocks that are expected to have total returns of +15% or better over

the next 12 months.

NEUTRAL: Expected total returns of between -15% and +15% over the next 12months.

NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i)an equal number of stocks that are expected to have total returns of +15% (or better)or -15% (or worse), or (ii) stocks that are predominantly expected to have total returnsthat will range from +15% to -15%; both over the next 12 months.

UNDERPERFORM: Expected negative total returns of 15% or more over the next 12months.

UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has ahigh number of stocks that are expected to have total returns of -15% or worse overthe next 12 months.

TRADING BUY: Expected positive total returns of 15% or more over the next 3months.

TRADING BUY: The industry, as defined by the analyst's coverage universe, has ahigh number of stocks that are expected to have total returns of +15% or better overthe next 3 months.

TRADING SELL: Expected negative total returns of 15% or more over the next 3months.

TRADING SELL: The industry, as defined by the analyst's coverage universe, has ahigh number of stocks that are expected to have total returns of -15% or worse overthe next 3 months.

** This framework only applies to stocks listed on the Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily

outside the prescribed ranges due to extreme market volatility or othe r justifiable company or industry-specific reasons.

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2010.

ADVANC - Excellent, AMATA - Excellent, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL - Very Good, BCP - Excellent, BEC - Very Good, BECL -Excellent, BGH - Very Good, BH - Very Good, BIGC - Very Good, BTS - Good, CCET - Very Good, CK - Very Good, CPALL - Very Good, CPF - Excellent, CPN - Excellent, DELTA -Very Good, DTAC - Very Good, GLOBAL - not available, GLOW - Very Good, HANA - Very Good, HEMRAJ - Excellent, HMPRO - Very Good, ITD - Very Good, IVL - not available,KBANK - Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR - Very Good, MCOT - Excellent, MINT - Very Good, PS - Very Good, PSL - Excellent, PTT -Excellent, PTTAR - Excellent, PTTCH - Excellent, PTTEP - Excellent, QH - Very Good, RATCH - Excellent, ROBINS - Excellent, ROJNA - Very Good, SAMART - Excellent,SAMTEL - Excellent, SCB - Excellent, SCC - Excellent, SCCC - Very Good, SIRI - Very Good, SPALI - Very Good, STA - Good, STEC - Very Good, TASCO - Very Good, THAI -Very Good, TMB - Excellent, TOP - Excellent, TRUE - Very Good, TTA - Excellent, TTW - Very Good, TUF - Very Good.

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