Page 52 - BAM ONE REPORT 2564 (ENGLISH VERSION)

50 Part 1
Business Operation and Performance

Marketing and Competition
The Company encounters the competition in NPLs and NPAs acquisition with the main competitors including other
asset management companies in Thailand that are the state enterprises such as SAM (FIDF is the major shareholder of the
Company and SAM) and asset management companies of the commercial banks in Thailand. However, most of the asset
management companies that are a business unit of commercial banks will not purchase NPLs or NPAs from other financial
institutions, but will manage NPLs and NPAs that are transferred within the group of any such commercial banks. The
Company also competes with other asset management companies such as J Asset Management Company Limited, Chayo
Asset Management Company Limited, etc. Previously, these asset management companies would mainly purchase the
assets relating to personal loans and credit card debts, but they have currently competed more in purchasing NPLs and
NPAs, which are the Company’s major targets. Besides, banks have presently separated the NPLs for auction into a larger
number of groups, based on the location and size of the collateral assets, in order to provide opportunities for new buyers
to compete with the Company. Furthermore, the Company faces competition with foreign corporations having strong
financial status that set up an asset management company in Thailand such as Loan Star Funds and Accretive Company
Limited, and the competition in the NPLs and NPAs industry may be more intense in the future.

The Company competes with other asset management companies by relying on strong financial status, ability to
access fund sources, rapidity in acknowledging news and information to track an opportunity to purchase NPLs and NPAs,
ability of suitably pricing non- performing loans and NPAs, reputation and credibility of the Company as well as the networks
in operation and experienced teams (determining ability of NPLs and NPAs management). Nevertheless, such management
ability may affect the Company’s action plan.

Furthermore, to sell the NPAs, the Company also has to compete with other real estate companies, and financial
institutions selling the NPAs, as well as other entrepreneurs in the real estate market.

Target customer group
The target group of the Company’s asset management business includes debtors that the Company purchases NPLs
from the financial institutions.

The target group of the NPAs management business includes real estate developers, investors and other customers.
Furthermore, the Company organizes an asset expo and arranges a booth in many events all over the nation for more than
100 times a year so that the Company can access the target group as much as possible.

Marketing and sale promotion policy
The Company arrange an activity to promote debt restructuring for customers being NPLs under the project “Sukjai
Dai Ban Khuen” (Happy to get home return) with aims to give an opportunity to the debtors not ordered for receivership
to be able to redeem collaterals as an accommodation, with principal amount not exceeding 10.0 million Baht. Payment
can be made one time within 90 days, or made by installment within 20 years at rate of 80.0% of the appraised price
according to the principles of the Company. Furthermore, arranges other projects to help the customers being the NPLs
continuously such as Project “BAM Chuai Lod Phue Plod Nee” (BAM to reduce debts) with objectives to give an opportunity
to debtors not ordered for receivership, not having other properties for debt settlement without collateral, and not having
principal amount exceeding 3.0 million Baht. Debt repayment can be made one time within 90 days at rate of 10.0% of
outstanding principal amount, or by installment within 3 years at rate of 15.0% of outstanding principal amount without
interest. Furthermore, the Company has a project “BAM Chuai Fuen Khuen Turakij” (BAM to restore the business), with aims
to give an opportunity to debtors of the Company, including natural persons and juristic persons, not ordered for receivership,
not having other properties for debt settlement, to settle debts with principal amount not exceeding 20.0 million Baht.
Debt repayment can be made one time within 90 days or by installments within 10 years at rate of 80.0% of the appraised
price according to the Company’s principles. However, such project is under other conditions of the Company.