1. Thailand’s Investment Environment PANNEE CHENGSUTTHA D IRECTOR, E UROPE D IVISION I NTERNATIONAL A FFAIRS B UREAU Thailand Office of the Board of Investment 28 March 2013, Moscow

2. O UTLINE P RESENTATION Economic Overview Why Thailand Opportunities in various sectors BOI services

3. Thailand in Brief Labor Force: 39 Million 2 nd largest economy in ASEAN THAILAND is the world’s 17th largest manufacturer 20 th largest exporter of goods 33 th largest economy Per capita GDP(2012): US$5,382 (€4,187 ) Thailand is an upper middle income country Exchange rate: €1 = Bt39.96 in 2012

4. 2013 Economic Forecasts 2012 Current Account: US$2.7 billion (€2.1 billion) 2012 Trade Balance: US$8.3 billion (€6.5 billion) Source:NESDB GDP 4.5- 5.5% Export Value 11.0% Headline Inflation 2.5-3.5% Private Consumption 3.5% Exchange rate: US$1=Bt31.08 and €1 = Bt39.96 in 2012

5. T HAILAND ’ S T AXATION 10% for Regional Operating Headquarters 15% for net profits (for firms with capital of ≤ Bt5 million baht.) 20%* of net profits (for other firms) Corporate Income Tax 7% VAT 10% of gross remittances Remittance 10-15% Withholding 0-35% ** Personal Income Tax * Two accounting periods beginning on or after 1 January 2013. ** The new tax rate will be applied for 2013 tax calendar year onwards.

6. ASEAN C ORPORATE I NCOME T AX 2013 Source: KPMG

7. T HAILAND ’ S I NDUSTRY C LUSTER BY IE S * NORTH E&E parts Food and dairy products (sugar, bakery, dried fruit snack, juice, and MSG). Agricultural processing (animal feed) NORTH E&E parts Food and dairy products (sugar, bakery, dried fruit snack, juice, and MSG). Agricultural processing (animal feed) BANGKOK & VICINITY AREAS: Food & beverages Chemical products Electronics parts Consumer products(Shampoo, toothpaste and etc) BANGKOK & VICINITY AREAS: Food & beverages Chemical products Electronics parts Consumer products(Shampoo, toothpaste and etc) CENTRAL Automotive parts Chemical products Electronics parts Consumer products CENTRAL Automotive parts Chemical products Electronics parts Consumer products WEST Apparels. Frozen and processed food. Electronics parts Food products (ice cream, yogurt, and ready-to-drink yogurt) WEST Apparels. Frozen and processed food. Electronics parts Food products (ice cream, yogurt, and ready-to-drink yogurt) EAST Automotive parts Chemical products Petrochemical products EAST Automotive parts Chemical products Petrochemical products SOUTH Palm oil Gypsum Automotive parts SOUTH Palm oil Gypsum Automotive parts Source: Office of Transport and Traffic and Policy Office (BOI’s Overseas Office Meeting) as of Oct 31, 2012 * Industrial Estates

8. 8 8 T RADE S UMMARY BETWEEN T HAILAND /R USSIA Source: MOC, as of January 17, 2013 -8.06%

9. 9 9 P RINCIPAL E XPORTS TO R USSIA Description200920102011 2011 (Jan- Nov) 2012 (Jan- Nov) % Growth (YOY) Motor cars, parts and accessories36.2213.7393.9369.9389.65.33 Plastic resins16.328.953.350.260.520.47 Other electrical equipment and parts thereof 8.845.750.350.158.115.92 Prepared or preserved fruits 22.941.855.351.939.0-24.84 Rubber products12.118.641.033.138.817.19 Others 309.4422.5555.7521.6464.7-10.91 Total 405.7771.11,149.51,076.81,050.6-2.43 Unit: US$ Million Source: MOC, as of January 17, 2013

10. 10 P RINCIPAL I MPORTS FROM R USSIA Description200920102011 2011 (Jan- Nov) 2012 (Jan- Nov) % Growth (YOY) Crude oil325.91,619.02,602.52,433.91,818.7-25.28 Iron, steel and products793.5938.21,210.51,080.31,133.14.89 Fertilizer and pesticide95.5229.9366.3349.8444.227.01 Other metal ores, metal waste scrap, and products 55.176.165.264.1117.082.49 Finished oils63.911.20.0 97.8NA Others 358.2350.3274.4258.2177.5-31.28 Total 1,692.23,224.74,519.04,186.33,788.2-9.51 Source: MOC, as of January 17, 2013 Unit: US$ Million

11. V ALUE OF I NVESTMENT P ROMOTION A PPLICATIONS B Y I NDUSTRY, 2003 – 2012 7.98 16.42 17.63 12.82 15.88 11.17 15.97 11.20 Source: BOI, as of Jan 17, 2013 16.84 37.01 Exchange rate: €1 = Bt39.96 in 2012

12. F OREIGN D IRECT I NVESTMENT A PPLICATIONS +63.5% Source: BOI, as of January 17, 2013 Exchange rate: €1 = Bt39.96 in 2012 Italian applications in 2012: €1.34 million

13. 13 R USSIAN A PPROVED A PPLICATIONS IN 2000 – 2012 Source: BOI, as of January 17, 2013 US$1=Bt31.08 in 2012 No. of Projects 8 Projects Total Investment US$37.64 Million CompanyProduct Invest (US$ million) AMEK INDUSTRIES CO., LTD.Wooden Furniture4.32 FORMICA - PHIANITE CO., LTD.Cubic Zirconia0.88 MERMAIDS PROPERTY CO., LTD.Retirement Home2.25 SIBIRSKO ZOLOTO CO., LTD.Water Theme Park0.32 WEBLOGY CONSULTING CO., LTD.Software28.96 FULL DOME PRO. CO., LTD.Software0.14 SYNGEM CO., LTD.Nanocrystal0.64 Sample of Russian Investments in Thailand

14. No restrictions on foreign currency 100% foreign ownership in manufacturing No export requirements No local content requirements LIBERAL INVESTMENT REGIME Thailand and the BOI offer:

15. Tax Incentives  Corporate income tax holidays up to 8 yrs  Additional 50% reductions of corporate income tax for 5 yrs  Import duty reductions or exemptions on machinery and raw materials  Double deduction of public utility costs  Deductions for infrastructure construction/installation costs B ASIC BOI P RIVILEGES AND M EASURES Non-Tax measures  Land ownership rights for foreign investors  One Stop Services Center (OSOS)  Work permit/visa facilitation for foreign experts and technicians One-Stop-Shop 3 hours Visas & Work Permits are issued in 3 hours

16. BOI ZONING AND INCENTIVES Zone: 1 2 3 Incentives: Lower Higher Import Duty Privileges Outside I.EInside I.E Zone 150% Reduction Zone 250% ReductionExempt Zone 3Exempt Corporate Income Tax Outside I.EInside I.E Zone 1No Privilege3 years Zone 23 years7 years Zone 38 years

17. Sector Matrix: Incentives to strengthen competitiveness Strategic or Priority Activities Maximum incentives regardless of location Customized packages Zone-Based Incentives: Zone 1 Zone 2 Zone 3 F ROM Z ONE -B ASED TO S ECTORAL A PPROACH

18. Agro-Industry Metalworking Industry Light Industry Automotive and Machinery Industry E&E Industry Chemicals and Plastics Industry Services Industry Sectors for Investment

19. EXAMPLES OF PRIORITY ACTIVITIES Agriculture and agro-industries R&D Software development Molds & Dies Biotechnology Alternative energy Manufacture of hi-tech products e.g. advanced ceramics Waste recycling & recovery

20. BOI SERVICES

21. 21 Overseas offices Country desks 1-Stop for visas & work permits: work permits in 3 hours Interaction with other govt. agencies on behalf of investors Industrial Subcontracting Services Vendors meet customers program (BUILD Unit) Investment Matchmaking Program ASEAN Supporting Industry Database BOI SUPPORT SERVICES

22. ASEAN Supporting Industry Database (ASID) www.asidnet.org Information and profiles of companies in supporting industries and manufacturers of parts and components in 10 ASEAN countries

23. 23 18th Floor, Chamchuri Square Building 319 Phayathai Road, Pathumwan Domestic Call: 0 2209 1100, Inter. Call: (66 2) 209 1100 Email: osos@boi.go.th More Convenience, less time, more efficiency! More Convenience, less time, more efficiency!

24. THANK YOU