Page 72 - Amata-one-report2020-en

Risk from Business Operations in the Countries which Have Investment Expansion

Risk from business operations in the countries which have investment expansion

Greater Mekong Subregion Economic Cooperation Program (GMS Program) which has total population of 326
million people brought about the supports on trade economy and linkage of transportation and communication networks
with aims to make them become an economic corridor.

The Company has studied the business opportunities based on strategic locations of the countries in Greater
Mekong Subregion (GMS) which consist of Thailand, Vietnam, Myanmar, Lao and Cambodia and it was found that
Thailand has potential to be the logistic center of Mekong region areas; Vietnam can be developed to be the important

production bases in the future and it has location which has strategic advantages on Pacific Ocean side; locations
of Myanmar have strategic advantages on Indian Ocean side; and Lao has potential to be the logistic center to link
the southern China with the countries in Mekong region. Thus, the Company has specified the plans to expand its
business to these countries continually and such investment requires a large amount of investments and great efforts
for project development.

However, foreign countries’ laws and regulations are different from Thailand, so it is very important that the Company’s
business expansion has to rely on knowledge and expertise from business partners in those countries.

Risk Incurred

The Company’s industrial estate development business investment in foreign countries may have risks as its
project development may not achieve due to internal risk factors in such country and the Company may also encounter
with financial risks.

Risk Factors

Countries in Mekong region areas are still the developing countries, so they have political fluctuation and changes
continually, particularly political stability. Laws, regulations, and international agreements have been changed and

improved to enhance the country’s economic growth as well as to respond to external factors which affect the country
development. In addition, the important risk factors, i.e., economic structure, banking, and financial policy which are
under development may impact to the Company’s investment plans, operations and revenues.

Risk Impact

Political changes, domestic conflicts, changes in law, economic and finance policies, and business operation
conditions of each country that the Company developed businesses there may impact to success of the new project as
it may not make them achieve as per the predefined plans and it may also impact to the Company’s internal working
capital management, as well as confidence and investment decision of the customers. The Company’s revenue
from real estate sales and rental including revenue from utilities and industrial services will be directly affected, if the
customers who are the factory operators in the industrial estates which have been impacted from the change of policies
or laws in such country temporarily or permanently stop their production activities.

72 56-1 One Report 2020