Unlocking Growth: The Future of Cambodia's Capital Markets

The Cambodia Securities Excchange, launced in 2011, is one of the regionals developing capital markets with a Main and Growth Board. There are 11 listed stocks in real estate, infrastruture, banks, and telecom. The stocks are generally trading under book value and most at low Price to Earning Ratio, This Presentation discusses the importance of the capital markets in a country, provides statistics and data on the market, and compares to regional markets.

1. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Anthony Galliano Group CEO Cambodian Investment Management Holdings 1

2. Mr. Anthony is the Founder and Chairman of CIM Holdings, with more than 30 years of experience in the Banking Industry. He worked as Corporate Head in Citibank and later in ANZ Royal Bank, finally to move on and establish his own company Cambodian Investment Management in 2009. Currently Mr. Galliano holds the following positions: Member of the Board of Directors - Vibe Hospitality (Cambodia) , Digital Classifieds Group, Payscout, Remote Technologies, Regiotels , Obor Management, Cambodia Restaurant Association, Cambodia Insurance Brokers Association, AmCham Cambodia (VP), American Lao Business Association (VP), WowWee Advertising and Tanncam Singapore C h a i rma n - Affinity Star Insurance Broker (Cambodia) Chairman – Star Insurance Agent (Vietnam) and (Laos) Chairman - Premium Human Resources (Cambodia) Chairman – B2B Media Chairman - Phnom Penh BG Serviced Office (Cambodia) Director - Cambodian Investment Management Accounting and Tax Services C h i e f E x e c uti v e O f fi c e r - C ambodian I n v e s tm e n t Management CEO – Lotus Business Processing Solutions (Vietnam) Chairman – YY Circle Cambodia Anthony Galliano ( Chairman and Founder of CIM Holdings)

3. CAMBODIAN INVESTMENT MANAGEMENT HOLDING CO., LTD. (CIM Holdings) is a holding company jointly owned by Anthony Galliano and Tanncam Investment, The company has majority and minority positions or controlling stakes in the following companies. Cambodian Investment Management Tax Services (a licensed tax agent) Cambodian Investment Management A ccounting Services (a member of KICPAA , licensed by ACAR ) Affinity Star Insurance Broker (a licensed insurance broker ) Cambodian Investment Management (Corporate Finance and Company Incorporation, Company Secretarial Services) Phnom Penh BG Serviced Offices Premium Human Resources OBOR Management (a licensed fund manager) Investment Management, Arranger, Advisory, M&A B2B Cambodia (real-time business new platform) YY Circle (temporary worker platform, parent NASDAQ listed) ABOUT US

4. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS History of Cambodia Securities Exchange - Launched in 2011, it is the sole stock exchange in Cambodia, operating under the supervision of the Securities and Exchange Regulator of Cambodia (SERC). The CSX lists both equity and bonds, with companies able to raise funds by offering shares to the public. - Over the years, a number of companies have gone public, particularly from sectors like real estate, finance, and infrastructure - Total market capitalization of listed companies has reached around USD 2.5 billion by the end of 2023. - There are currently 9 listed companies on the CSX Main Board and 2 listed companies on the CSX Growth Board, which include sectors such as utilities, financial services, real estate, and transportation.

5. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS - Trading volume on the CSX is still relatively low compared to more mature exchanges in the region. Daily average trading volume varies but generally ranges between USD 100,000 - USD 500,000 . Q3 2024 Average Daily Trade Value USD 126K, Volume 101K. - The number of active investors in the market has grown. The number of trading accounts at end of Q3 2024 is 57,646 up 31% Year on Year - Notable Milestones: 2016 : Launch of a mobile trading platform 2019 : Introduction of new financial instruments, corporate bonds/rights issues. 2021 : The CSX introduced its first Initial Public Offering (IPO) for a small- and medium-sized enterprise under the Growth Board, allowing SMEs to access capital through the stock exchange. - Currently both Government and Corporate Bonds listed with 10 corporate bonds presently trading including RMA (Cambodia) Plc, Royal Railway Plc, Telcotech LTD, CIA International School, CAMGSM Plc, Golden Tree Co, and Royal Group Phnom Penh SEZ.

6. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS

7. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS S.No. Company Name Ticker Listing Date 1 ACLEDA Bank Plc. ABC 25-May-20 2 CAMGSM Plc. CGSM 27-Jun-23 3 DBD Engineering Plc. DBDE 6-Sep-21 4 Grand Twins International (Cambodia) Plc. GTI 16-Jun-14 5 JS LAND PLC JSL 10-Feb-22 6 MENGLY J. QUACH EDUCATION PLC. MJQE 28-Jun-23 7 Pestech (Cambodia) Plc. PEPC 12-Aug-20 8 Phnom Penh Autonomous Port PPAP 9-Dec-15 9 Phnom Penh SEZ Plc. PPSP 30-May-16 10 Phnom Penh Water Supply Authority PWSA 18-Apr-12 11 Sihanoukville Autonomous Port PAS 8-Jun-17

8. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Q3 2023 Q2 2024 Q3 2024 %YoY No. Trading Days 64 59 65 1.56% No. of Listings (Stocks)* 11 11 11 0.00% Total Trading Value (KHR)* 55,322M 53,027M 32,897M -40.53% Total Trading Volume (Shares)* 11,489,054 10,587,037 6,561,470 -42.89% Daily Average (KHR)* 864.40M 898.77M 506.11M -41.45% Closing Index 455.66 414.14 411.03 -9.79% No of Total Trading Accounts 43,974 53,713 57,646 31.09%

9. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Market Comparisons Stock Exchange Market Cap (USD) Listed Companies Daily Trading Volume (USD) Key Index Recent Index Performance Cambodia (CSX) 2.5 billion 11 100,000 - 500,000 CSX Index Flat to Dowm Vietnam (HOSE) 300 billion 1,600+ 500 million - 1 billion VN-Index 1,500 points (2023) Thailand (SET) 600 billion 750+ 1.5 billion - 2.5 billion SET Index 1,500 - 1,600 points (2023) Philippines (PSE) 250 billion 280+ 100 million - 300 million PSEi 6,000 - 6,500 points (2023) Singapore (SGX) 650 billion 750+ 800 million - 1.5 billion Straits Times Index (STI) 3,200 - 3,300 points (2023) Indonesia (IDX) 600 billion 800+ 1 billion - 2 billion IDX Composite (IHSG) 7,000 points (2023) Malaysia (Bursa Malaysia) 400-450 billion 900+ 700 million - 1 billion FBM KLCI 1,400 - 1,600 points (2023) NYSE (New York) 27 trillion 2,400+ 50-60 billion Dow Jones Industrial Average 34,000 - 36,000 points (2023) NASDAQ 24 trillion 3,500+ 60-70 billion NASDAQ Composite, NASDAQ-100 14,000 - 15,000 points (2023)

10. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Several factors contribute to the limited expansion of the CSX compared to other regional markets, some of the key reasons why the Cambodian stock exchange is not growing as rapidly as expected: - Low Investor Participation: Limited Retail Investor Base : Cambodia has a relatively small retail investor base due to a lack of financial literacy and awareness about the benefits of investing in capital markets. Many people in Cambodia are unfamiliar with stock trading and prefer more traditional investments like real estate or gold. - Lack of Institutional Investors : Institutional investors such as pension funds, insurance companies, and mutual funds play a key role in deepening capital markets, but their presence in Cambodia is limited. This reduces liquidity and trading volumes on the CSX. - Limited Number of Listed Companies: As of 2024, the CSX only has 11 listed companies , which is significantly lower than other regional exchanges. This limited selection of securities restricts investment opportunities and discourages investor participation. Many companies in Cambodia are still family-owned or state-owned enterprises that are hesitant to go public due to concerns about transparency, disclosure requirements, and losing control of their business.

11. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS - Lack of Liquidity: The CSX faces a liquidity problem , with low trading volumes. Daily trading volume often falls below USD 200,000 , which is insufficient to attract both domestic and foreign investors. Low liquidity means that investors may struggle to buy or sell shares without significantly impacting prices, making the market unattractive for large institutional investors. - Limited Foreign Investor Participation: While Cambodia allows foreign investors to participate in its stock market, foreign participation has remained low. Factors such as the small size of the market, limited investment options, and concerns over governance and transparency have deterred foreign investors. - Regulatory and Governance Issues: C orporate governance standards have raised concerns among investors. Many businesses are reluctant to meet the high levels of transparency and accountability required for public listings. - Slow Regulatory Development : Although Cambodia has made progress in establishing a securities market, the regulatory framework is still evolving. There is room for improvement in enforcing regulations, protecting investor rights, and promoting corporate governance standards.

12. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS - Economic Structure and Size: Small Economy : Cambodia's economy is smaller compared to regional peers like Thailand, Vietnam, or Indonesia - Limited Financial Literacy: Lack of Investor Education : There is a lack of financial literacy among the general population in Cambodia. Many Cambodians do not have access to formal financial education, which limits their understanding of how capital markets work and the potential benefits of investing in stocks. - Conservative Investment Culture : Cambodians tend to favor traditional assets like real estate, savings, or gold over financial instruments like stocks and bonds. - Competition from Other Investment Opportunities: Real Estate Dominance : Cambodia's real estate market has been a preferred investment option for both domestic and foreign investors. The high returns from real estate have diverted attention away from the stock market, reducing participation in the CSX. Bank Deposits and Savings : Bank deposits and savings are other popular forms of investment in Cambodia. The banking sector offers competitive interest rates, viewed as safer and easier to understand compared to stock market investments. - Limited Promotion and Market Awareness: Lack of Market Promotion : The Cambodian government and financial institutions have made some efforts to promote the CSX, but more needs to be done to raise awareness about the stock market. - Few Incentives for Listings : Companies may be reluctant to list on the CSX due to the perceived costs and burdens of complying with regulations. There need to be more incentives for businesses to go public, such as tax breaks or simplified listing requirements

13. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Why Cambodia needs to Accelerate the Develop its Capital Markets and Why is this the Next Opportunity: - Mobilizing Savings for Investment: Capital markets transform savings into productive investments . By providing a platform where individuals and institutions can invest their surplus funds, these savings are channeled into productive economic activities like business expansion, infrastructure projects, and innovation. This fosters long-term economic growth. - Facilitating Capital Raising for Businesses: Companies use capital markets to raise funds through the issuance of equity (stocks) or debt (bonds). This allows businesses to finance their operations, expand, invest in new technologies, and enter new markets. - Providing Liquidity: Capital markets provide liquidity, enabling investors to buy and sell securities quickly and easily. This liquidity gives investors confidence that they can enter and exit investments, making capital markets an attractive place to store wealth and invest. - Encouraging Transparency and Corporate Governance: To be listed on a stock exchange, companies are generally required to adhere to stringent disclosure standards, publish regular financial reports, and practice good corporate governance. This enhances accountability and transparency, leading to better management practices that benefit both the company and the economy.

14. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS - Risk Management and Diversification: Capital markets provide various financial instruments that help investors manage risk and diversify their portfolios. - Boosting Economic Growth and Development: A well-functioning capital market provides businesses with the funds they need to grow, which in turn leads to job creation, higher productivity, and increased innovation. It also helps in developing industries that may otherwise be underserved by bank lending. - Attracting Foreign Investment: Capital markets can attract foreign investors, bringing in capital, technology, and expertise. This influx of foreign capital can stimulate economic development and improve international relations. - Supporting Government Financing: Governments use capital markets to issue bonds to finance large-scale public projects such as infrastructure, healthcare, and education. By tapping into the capital markets, governments can access long-term funding at competitive rates without having to rely solely on tax revenue or international borrowing. - Encouraging Innovation and Entrepreneurship: Capital markets provide funding for high-growth startups and innovative companies that might not have access to traditional bank loans. This financing supports entrepreneurship, technological advancements, and the development of new industries. Venture capital, private equity, and initial public offerings (IPOs) are key components of capital markets that foster innovation and economic dynamism. Wealth Creation and Distribution: Capital markets allow individuals to participate in the ownership of companies through stock purchases, enabling wealth creation for a broader segment of the population

15. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Why Invest in the Capital Markets: Returns - As an example the  S&P 500 average yearly return is  10.628%  over the last 100 years, as of the end of July 2024. Stocks historically offer higher returns compared to alternatives like bonds or gold, Don’t Put Your Eggs in one Basket  (Diversification of Assets) risk reduction, consistent returns, exposure to various opportunities, protection against volatility, long-term growth potential, customization to goals and risk tolerance and reduced emotional bias Capital Growth and Dividends Income from both the gains in the share prices and dividends distributed (regular income) Liquidity - Unlike other assets classes, stocks can easily be sold in seconds on an exchange.

16. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Education and Retirement Planning (Savings Method) set-up regular plans to invest for retirement or education. Dollar/Khmer Riel Cost Averaging Investing in the Country’s Future Providing capital for start-ups, entrepreneurs, and business expansion Low Minimum Investment and Cost and Easy to Do generally no minimum investment and trading costs are low Price Transparency stock prices are available online up to the second so you know the value of your holding at any time. Stocks in Cambodia are Cheap Right Now, it Great time to Buy

17. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Why are Cambodian Stocks Cheap: Price Earnings Ratio and Price to Book are relatively Cheap. S&P 500 P/E Ratio is at a current level of  27.87 , Price to Book is 4.8. NASDAQ P/E is 43, Price to Book is 3.9. Stock Close P/E P/B ACLEDA 7,300 5.85 0.55 CGSM 2,450 14.94 4.02 Grand Twins International 4,200 85.71 0.59 MJQE 2,040 35.17 6.48 Sihanoukville Autonomous Port 11,300 9.98 1.46 Phnom Penh Autonomous Port 13,300 7.39 0.63 Royal Group Special Economic Zone 2,220 23.62 0.62 Phnom Penh Water Supply Authority 6,260 4.20 0.52 DBD Engineering 2,050 - 1.04 JS Land 3,450 7.10 5.16

18. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS Some are paying Good Dividends and have Excellent Yields: CAMGSM: guaranteed dividend yield of 7% to the shareholders who are the CAMGSM’s customers Mengly J. Quach Education:  the Company guarantees to distribute a dividend of USD 0.0306 per share at the IPO price  ACLEDA Bank: annual dividend of KHR 140.4795 or a yield of 2% Phnom Penh Water Supply, dividend of 350 per share and a yield of 5.6% Growing Earnings in Line with Growing Economy Potential Merger and Acquisition Targets (easier through Share Purchase) Index is at a very Low Point, all time high of 869.2 (2019), low of 318.4 (2016, now 407.24 The Market will Flourish and Foreign Direct Portfolio will Come, Demand will Pressure Price Rises

19. UNLOCKING GROWTH: THE FUTURE OF CAMBODIA’S CAPITAL MARKETS INVEST IN CAMBODIA AND ITS FUTURE YOU WILL BE REWARDED WITH SUPERIOR LONG-TERM RETURNS

20. Connect with Anthony Galliano Chief Executive Officer [email protected] THANK YOU