Page 71 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

Risk Incurred

Those factors posed risks to successful development of areas in the countries that the Company are operating,
for instance, geopolitical risks may make the factory operators located in the existing projects slow their production or
take precaution measure to adjust their plans or close businesses in the affected county and relocate their production
bases to the country which receives favorable impacts from such changes.

In case the investors are under investment decision-making process, a political change at Asian regional level

may make them delay their investment decision or decide to choose other regions which have lower geopolitical risks.
Moreover, a change of geopolitical move also impacted to changes of potential and competitive advantages of each
area due to changes of policy in country level, and it may lead to barrier to trade, both in forms of tax and non-tax,
such as imposing of standards and penalty measures as a result of impacts from international politics and restriction

of assistance on infrastructure of the developing countries by the developed countries which will impact to potential
of the country as a whole.

Risk Impact

Changes of international politics may impact to the Company’s real estate development business, especially the
achievement of overseas project development as per the planned target. If the country where the Company’s project is
located has been impacted, investment potential and attractiveness of such areas will be lessened that it may impact
to the investors and manufacturing operators’ decision on investment in such country. Fundamental factors of the
country are very crucial for investment decision and business operations.

Changes of international politics may impact to main revenues of the projects which are currently in operation of
the Company, i.e., revenue from real estate sale and rental business, and revenue from utilities service, i.e., electricity,
treated water, water treatment, natural gas, and industrial services, as they may be decreased if the manufacturing
operators delay their investment decision or production or relocate their manufacturing base to other countries which

have more advantages.

Risk Management

With regards to geopolitical risks which impact to overseas investment, the Company managed such risks by
preparing risk management measures, analyzing risks of the countries which have investment potentials before making
investment decision every time, selecting the countries which have low geopolitical risks and closely monitoring and
evaluating risk levels of each country that the Company has invested in when there are political changes at regional level.

Additionally, the Company tried to lobby the policy to increase investment rights and benefits provided to the foreign
investors to boost their attraction to invest in each country.

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