1.  RISK FACTORS

  1. Slow down of the tourism industry

  In the past year, Thailand’s tourism industry has been affected
  primarily by two issues, the political unrest which led to the closure
  of the Suvarnabhumi International Airport and Donmuang Airport, and
  the slow down of the global economy. Although medical tourism is not
  as easily affected as the typical tourism industry as there is an
  established relationship between patients and the hospital and
  physicians, these events could cause a postponement or a reduction in
  number of patients traveling to Thailand and could in turn affect
  revenues from international patients.

  In order to minimize the risk, the Company maintains a balanced
  portfolio of international and Thai patients so that the Company does
  not rely excessively on revenue from international patients.

  2. Intensified competition in the premium healthcare sector

  With the current environment where purchasing power has been slowing
  down because of the political and global economic uncertainties, while
  the supply of private hospitals remains high, competition in the
  private healthcare sector continues to intensify. The risk of the
  Company losing its clients to other competitors therefore increases.

  In order to maintain its leading position in Thailand and Asia and to
  mitigate the risk, the Company has invested in up-to-date equipment
  and information technology, upgraded both inpatient and outpatient
  facilities as well as continuously improved its quality of care. The
  Company was the first hospital in Asia to receive US standard
  accreditation from Joint Commission International Accreditation
  (JCIA), and was the first private hospital in Thailand to receive Thai
  Hospital Accreditation (HA). In addition, the Company has a strong
  client base of referral patients both from within Thailand and
  internationally. This signifies the reputation of the Company as the
  leader both within Thailand and in the region.

  3. Shortage of professional staff

  The hospital business requires personnel with specific technical
  expertise and knowledge, including nurses, pharmacists and various
  technicians. A shortage of these professionals is possible due to the
  increasing demand. In addition, because the Company sees the
  importance of its international client base, multi-lingual
  professionals are also required.

  In order to minimize the risk, the Company offers competitive
  compensation and benefits for its staff. The Company also provides
  education and training, recreation and staff welfare activities to all
  staff members, on par with other competitors. Through a decentralized
  management structure, the Company also offers excellent career paths
  to various categories of staff members.

  4. International investments

  Bumrungrad International Limited has investments in seven countries in
  Asia and the Middle East. Such investments carry the inherent risk of
  investment and expose the Company to country and currency risk outside
  Thailand.

  To mitigate this risk, Bumrungrad International Limited’s experienced
  international management team conducts extensive feasibility studies
  and carries out detailed due diligence using firms with local
  knowledge before recommending Company’s investment. Risk is also
  reduced by engaging local equity partners in most overseas
  investments. In addition, credit risk is reduced by only leveraging in
  its subject countries without corporate guarantees by Bumrungrad
  International Limited or the Company.

  5. Legal disputes

  Hospital business is subject to litigation risk attended to the
  provision of healthcare services by hospital staff and physicians.

  Therefore, in order to minimize the risk, the Company has implemented
  a healthcare risk management system to ensure that the risk of
  mistakes by the Company’s personnel is minimized and corrected. In
  addition, the Company has various insurance policies in place against
  possible legal lawsuits.