Page 54 - BAM ONE REPORT 2564 (ENGLISH VERSION)

52 Part 1
Business Operation and Performance

Distribution channel
The distribution channel is divided into 2 parts by the Company’s business operation including (A) channels for debt
composition and payment channel of the debtors for NPLs management business an (B) distribution channels for NPAs
management business.

The distribution channels in case of NPLs mean the debt composition and payment channels of the debtors. After
the debt composition finishes, the Company’s debtors can make payment through different channels such as Counter
Service at 7-Eleven or large commercial banks nationwide such as Bank of Ayudhya Public Company Limited, Kasikornbank
Public Company Limited, Krungthai Bank Public Company Limited, Bangkok Bank Public Company Limited, CIMB Thai Public
Company Limited, TMB Bank Public Company Limited, Siam Commercial Bank Public Company Limited, Land and Houses
Bank Public Company Limited, etc. The payment by Counter Service helps the debtors to make payment through a branch
of a commercial bank, and payment at the head office or the Company’s branch offices. If a debtor cannot make payment
according to the debt restructuring agreement’s conditions, the Company will consider restructuring debts under the new
conditions or enter a litigation to courts. However, generally, the Company will consider choosing 2 options, which are debt
restructuring together with court proceedings.

In case of NPAs, the Company has various distribution channels for NPAs such as Assets Expos in Bangkok and other
regions all over the country, advertisement and public relation through media in the country, Company’s website, Social
Media and BAM Application on a mobile device, online booking of assets on BAM website, and giving news and information
about NPAs of the Company. Mostly the customers will purchase the property in cash or request loan from a financial
institution. Sometimes, it is installment sale. In case of installment, the customers can select the same distribution channel
as the customers buying NPLs as above mentioned.

Overview of economic condition and asset management business
Economic condition
As predicted by the Fiscal Policy Office, Thai economy in 2021 will shrink by 1.0% per year (with a forecasting range
of 0.5% - 1.5%) as triggered by the new wave of the COVID-19 pandemic which became more severe in the third quarter
and leads to an expectation that Thai economy in the latter half of 2021 will slow down from the first half following the
implementation of disease control measures and a drop in economic activities. Nonetheless, the steadily improving COVID-19
situation and the progress of vaccine procurement and distribution to the public have prompted the government to ease
the measures to control the spread of COVID-19 and plan to open the country as from November 1, 2021, which will help
to revive economic activities, particularly in tourism, retail and wholesale, transportation, leisure and entertainment, and
other business sectors. It is forecast that private consumption will grow by 0.8% per year (with a forecasting range of 0.3%
- 1.3%) and private investment by 4.0% per year (with a forecasting range of 3.5% - 4.5%), while export will likely pick up
in line with the economic recovery of trade partners. Still, the production supply chain needs to be followed up on since
it may affect export in the next period. Thai export value in 2021 is expected to rise by 16.3% per year (with a forecasting
range of 15.8% - 16.8%).

Furthermore, the government sector plays a crucial role in shoring up Thai economy through the continuous launch
of fiscal measures such as the phase 3 half-half co-payment scheme, the more you spend, the more you get program, the
phase 3 project to boost purchasing power of state welfare card holders, the project to increase purchasing power of those
needing special aids, and the financial measures through the state-owned specialized financial institutions, together with
the use of loans under the Emergency Decree Authorizing the Ministry of Finance to Raise Loans to Solve Problems and
Remedy and Restore the Economy and Society as Affected by the Coronavirus Disease Pandemic B.E. 2563 and the
Emergency Decree Authorizing the Ministry of Finance to Raise Additional Loans to Solve Economic and Social Problems
as Affected by the Coronavirus Disease Pandemic B.E. 2564 in the Amount of Baht 500 Billion (Emergency Decree on