2.2 Business Characteristics

  (1) Significant Changes & Development

In 2009, the Company has no significant change in business
characteristics, internal control structure or shareholding structure.
However, the Company restructured the Marketing Division by transferring
Marketing 3 Team to Marketing 2 Team in April 2009, and merged the Local
Institutional Sales Department to the Japanese Institution Department in
2010 for proper and better management.

(2) The Company’s Business

The Company is licensed to perform 4 types of securities businesses,
i.e. Securities Brokerage, Securities Dealing, Investment Advisory and
Securities Underwriting business. As at the end of 2009, the Company has
4 branches, namely, Rangsit, Nakornpathom, Nakornsawan and Wireless Road
Branches and has Cantor Fitzgerald as an Exclusive Partner. Moreover,
the Company also provides Internet Trading services and its Investment
Banking Department provides the financial advisory service which was
licensed by the SEC. Such services comprise of financial advisory
services including advising on merges & acquisitions, fund raising by
issuing various kinds of financial instrument such as common and
preferred stocks, bonds, debenture with warrant, etc. and listing them
in the Stock Exchange of Thailand as well as the Market for Alternative
Investment (MAI) according to the license provided.

Moreover, the Company also has securities dealing business in debt
instrument trading in which it also contributed to the Company’s income
in addition to the securities brokerage income which is the principal
income of the Company. In addition, the Company also acts as a selling
agent of unit trusts representing altogether 15 asset management
companies so that the customers will have a wide variety to choose to
invest and it also provides more investment channel for them. In
addition, the Company has started its Derivatives Agent business
services since 2008.

During 2009, United Asset Management Company Limited, the Company’s
subsidiary, which is a joint venture with Mr. Verajet Vongkusolkit and
his family in order to undertake Private Fund Management business, has
acquired both Thai and Japanese high net worth Individual and
institutional clients. Some of the clients are from APF Group and
securities companies in Japan. Even though United Asset Management Co.,
Ltd. may not be as competitive as other asset management companies with
longer time of track record as it has started the operations for only
one year, the Company believes that there will be more incoming funds
from Japan resulted by the proof of 2009 performance. In order to expand
the income channel, UAM had applied for Investment Advisory license from
the Ministry of Finance in which at present the license has been
approved and the business had started since 12 November, 2009.

Income Structure of the Company

+-------------------------+-------+------+------+------+------+------+
| Income                  | 31    |      | 31   |      | 31   |      |
|                         | Dec   |      | Dece |      | Dece |      |
|                         | ember |      | mber |      | mber |      |
|                         |       |      |      |      |      |      |
|                         | 2007* |      | 2008 |      | 2009 |      |
+-------------------------+-------+------+------+------+------+------+
|                         | Mi    | %    | Mil  | %    | Mil  | %    |
|                         | llion |      | lion |      | lion |      |
|                         |       |      |      |      |      |      |
|                         | (     |      | (B   |      | (B   |      |
|                         | Baht) |      | aht) |      | aht) |      |
+-------------------------+-------+------+------+------+------+------+
| 1. Securities Business  |       |      |      |      |      |      |
| Income                  |       |      |      |      |      |      |
+-------------------------+-------+------+------+------+------+------+
| Brokerage Fees          | 1     | 6    | 14   | 5    | 14   | 6    |
|                         | 71.94 | 3.05 | 5.70 | 5.26 | 8.63 | 0.18 |
+-------------------------+-------+------+------+------+------+------+
| Fee and Service         | 13.09 | 4.80 | 1    | 7.38 | 4.34 | 1.76 |
|                         |       |      | 9.45 |      |      |      |
+-------------------------+-------+------+------+------+------+------+
| Gain(loss) on Trading   | 8.34  | 3.06 | 1.17 | 0.44 | 2    | 8.21 |
| in Securities           |       |      |      |      | 0.28 |      |
+-------------------------+-------+------+------+------+------+------+
| Interest & dividend on  | 24.56 | 9.01 | 4    | 1    | 3    | 1    |
| securities investment   |       |      | 4.26 | 6.79 | 5.93 | 4.55 |
+-------------------------+-------+------+------+------+------+------+
| Interest on loan        | 44.77 | 1    | 4    | 1    | 3    | 1    |
|                         |       | 6.42 | 7.05 | 7.84 | 2.30 | 3.08 |
+-------------------------+-------+------+------+------+------+------+
| Total Securities        | 2     | 9    | 25   | 9    | 24   | 9    |
| Business Income         | 62.70 | 6.34 | 7.63 | 7.71 | 1.48 | 7.78 |
+-------------------------+-------+------+------+------+------+------+
| 2. Other Income         | 9.98  | 3.66 | 6.05 | 2.29 | 5.47 | 2.22 |
+-------------------------+-------+------+------+------+------+------+
| Total Income            | 2     | 10   | 26   | 10   | 24   | 10   |
|                         | 72.68 | 0.00 | 3.68 | 0.00 | 6.95 | 0.00 |
+-------------------------+-------+------+------+------+------+------+

* Remark : The data for 2007 was derived from separated financial
statement