1.  RISK FACTORS

  1. Slow down of the tourism industry

  In the past, Thailand’s tourism industry has been affected by many
  issues, including public health epidemics, international terrorism,
  the unrest in southern Thailand, and most recently, the political
  situation and the Bangkok New Year’s bombings. Although medical
  tourism is not as easily affected as the regular 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 possible 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 may be slowing
  down because of the political and economic uncertainties, while the
  supply of private hospital 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 technology
  and has 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 (“BIL”) has made investments in
  hospitals in the Philippines and the United Arab Emirates. Such
  investments carry the inherent risk of investment and expose the
  Company to country and currency risk outside Thailand.

  To mitigate this risk, BIL’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.

  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.