#1b ทีเอ็มบีธนชาต TMBThanachart Investor Presentation FY2022 Financial Performance 26 January 2023#2Executive summary Ub Looking back on the time since merger― starting in 2019 from the idea of combining 2 banks' complementary strengths — it is a clear pathway for the Merged Bank to scale up and to deliver stakeholders' value in a sustainable way. To this end, we have carried on pursuing our strategic milestones to unlock merger synergies. Concurrently, we have successfully preserved our strong financial position and withstood the unprecedented pandemic and economic headwinds, thanks to our conservative direction. As a result, we started off 2022 with a good shape for resuming growth and here are deliverables. ☐ Synergy realization: overachieved balance sheet and cost synergies while revamping group structure (ttb consumer), business model and digitalizing operating model to reinforcing revenue stream and ramp up revenue synergy. ☐ Quality loan growth: leveraged post-merger strengths and maintained leading position in HP and Mortgage markets with target to gain higher share in consumer loan arena to enhance yields. Balance sheet preparation for interest rate hike: prepared our balance sheet ahead of changing interest cycle through long-term TD pre-fund strategy and asset-liability portfolio optimization aspiring for efficient funding cost going forward. Well-contained asset quality: maintained prudent risk management and monitoring scheme to ensure sufficient risk buffer. Solid capital position: allowed us to drive organic growth, enhance capital management (AT1 partial buy back) and increase shareholders' value (Dividend and TTB-W1). 2#32022 Outcomes 2022 Targets tub 2022 Actual Loan Growth Approx. +2% +0.4% YTD Deposit Approx. +3% +4.5% YTD Growth NIM Stable 2.95% 2.97% in 2021, 3.01% excluded PPA 3.06% excluded PPA Non-NII / Total Assets 0.80%-0.90% C/I Ratio 45%-47% from 2021 of 48% or 46% excluded PPA Stage 3 Ratio ≤ 3.2% 2.81% in 2021 0.79% 45% 43.9% excluded PPA 2.7% Credit Cost 140-160 bps 157 bps in 2021 133 bps TTB's loan growth slightly increased by 0.4% YTD as growth in retail loans almost offset by commercial loan repayment (-5.7% YTD). Zooming in retail loans which our targeted area, it grew as plan, led by HP (4.3% YTD) and mortgage lending (3.2% YTD). TTB continues to maintain leading position in these markets. Consumer loans also expanded, backed by group restructuring initiatives on ttb consumer and will be a positive factor for loan yields going forward. TTB's strategy is to rebalance loan mix towards retail loans and enhance loan yield. Growth in deposit was mainly from our pre-fund strategy. Since 4Q21, TTB continued to acquire Time deposit through Up and Up, a 24-month time deposit with a step-up interest rate to store term funding for our HP port and to lock in low-cost deposit in the preparation for rising rate cycle. The pre-fund strategy although put pressure on NIM during 1H22, we started to see turning point in 3Q22 as a result of our well-prepared B/S position for rising rate environment. We expect the continuity of NIM improvement in 2023 from enhancement in assets yield and rising rate cycle, offsetting with an increase in FIDF normalization. Despite unfavorable investment market that continued to affect MF fees, other key fee engines such as bancassurance and commercial fees showed an improving momentum. The AT repurchase transaction also contributed to higher non-NII. As part of our capital management initiative to improve equity holder value, we took market opportunity to partially buy back AT1 and recognized gains from repurchase price in 2H22. A strong decline in recurrent expense was underpinned by cost saving synergies from post-merger position. With such synergy and our cost discipline, we could achieve 2022 C/I target, despite ongoing investment as per our digital transformation plan. We target to improve C/I further and aim for low 40s in the next 3 year. Stage 3 ratio was well-controlled and on a declining trend since its peak at 2.98% during Covid-19 crisis in 3Q20 and after the expiry of debt-relief program. This is a result of our prudent and conservative risk management we quickly adapted since the beginning of the pandemic. We also ensure that our NPL resolution is efficient with an aim to keep our B/S clean as well as to preserve NPL values. Risk cost ended at 133 bps, below guidance. Such a level is based on forward-looking approach which includes reserve and conservatism related to Covid-19 and economic uncertainty. LLR or NPL coverage ratio increased to 138%, a sufficient level for our portfolio, of which more than half is collateral-based.#4Well-Prepared Position for a Rising Rate Environment tub 4#5Well-managed B/S composition in preparation of interest rate trend Cost of deposit (Included DPA) 1.27% Funding Strategy Earning asset Deposit mix -50 bps Pre-funded strategy 0.80% 0.77% CASA 30% 35% 41% 40% Utb Reprice >1Y, 30% Flexible Asset-Liability Portfolio Reprice <1Y, 70% Hybrid 43% CASA 40% TD 17% The Bank will benefit from interest rate hike due to well-positioned asset-liability portfolio Assets Majority of assets can be repriced quickly . • 70% of earning assets could reprice within 1 year. Shortening investment duration. Liabilities • 100% of deposit is linked with Admin Rate, allowing the Bank to manage on rate adjustment. •TD has been accelerated on acquisition in preparation for the rate rising trend, with 47% growth YTD. 38% Deposit Hybrid 51% 47% 43% TD 32% 14% 12% 17% 2019 2020 2021 2022 Well deposit mix reflected the Bank's funding strategy at each stage With post-merger optimization balance sheet direction, we have optimized deposit structure by reducing high-cost TD from 32% to 12% in 2021, achieving lower funding cost (-50 bps). Since 4Q21, the Bank has pre-funded long term deposit TD to prepare B/S ahead of the interest rate hike. There would be pressure on NIM in short term but would help sustain margin once loan growth picks up. Borrowing Match with FCY ST lending Float 26% Fix 74% • 74% of total borrowings is fixed rate, no impact from market rate increase. • 70% of floating rate borrowings is used for FCY short-term lending. Therefore, the interest rate impact is offset. 5#6Well-managed B/S composition in preparation of interest rate trend tb Priority is to minimize the negative Mark-to-Market impact during a rising rate cycle under proper market risk guidelines THB Government in Investment Portfolio 2.3 Duration 1.4 Investment Portfolio Breakdown Data as of Dec-22 Floating Rate Bond 21% Fixed Rate Bond 79% Manage to minimize impact from rising rate through Floating Rate Bond Investment: Floating rate bond portion is 21% of HtC&S portfolio. 6% 12% 12% 19% 27% 14% ■>5 years 35% 38% 2-5 years 81% 80% ■0-2 years 73% FCY Bond 8% 53% 50% Thai Corp Bond 6% THB Govt Bond 86% • 4Q21 1Q22 2Q22 3Q22 4Q22 Managed Short Duration during 2022: We managed to stay in Short Duration since 3Q21 to minimize negative impact from expected Interest Rate Rising cycle through: Replacing Bond roll down with Floating Rate Bonds and Short-Term Foreign Currencies Government Bonds to improve total Portfolio Return. HtC&S portfolio duration was shortened from 2.3 years in 4Q21 to 1.4 years in 4Q22 where 80% of the total investment stays within 2 years. HtC&S 76% HtC 24% Remark: Long-term bonds (>5 years) have been transferred to Hold to Collect (HTC) Portfolio as per the Bank's new Business Model in 2Q22. Return Enhancement from Thai corporate bonds and FCY bonds with rating of AA- and above: THB Corp and FCY Bond portion is 14% of HtC&S portfolio. The Amortized Cost Portfolio (HTC): Following new business model to support long-term liquidity management, HtC portfolio accounts for 24% of total Bank's investment with duration = 6.9 years at end of 2022. HtC&S: Hold to Collect and Sell HtC Hold to Collect 6#7Sound Capital and Liquidity Position Robust liquidity position with high LCR and top tier capital ratios among D-SIBS LCR Ratio BoT's Minimum Requirement LDR + Borrowings ■LCR Net Liquid Asset LDR LDR+Borrowing Capital Ratios 102.5% 101.5% 16.3% 188% 187% 100.4% 99.8% 184%* 98.3% 15.7% 172% 174% 97.5% 95.7% 96.3% 95.1% 94.3% 100% Unit: THB Bn 272 300 304 281 331 CET 1 Minimum Requirement TIER 1 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-22 Net Liquid Asset Definition: Note: Preliminary numbers 8.0% 9.5% Minimum Requirement CAR Cash + Interbank Asset + Investment - Interbank liab. Top priority has always ensured strong funding and healthy liquidity position. In the preparation for rising rate environment, the Bank pre-funded balance sheets in order to efficiently manage deposit cost in the rising rate cycle as well as to have a stable funding source and maintain high liquidity position, indicated by high level of LCR which is well above the BOT's minimum requirement at 100%. Our LDR+Borrowings ratio also reflectes our highly-liquid position and well-diversified funding. As of Dec-22, capital buffer remains robust with the 3rd highest CAR among peers* Note: * Preliminary data. Official LCR as of Dec-22 will be reported to BOT end of Jan-23 Ranking based on 3Q22 performance 7 20.0% Minimum Requirement 12.0% Utb#8Y2022 Performance Asset Quality Target 2023 tub 8#9Loan mix optimization towards retail lending for better loan yield tub Total Loan Others Retail Credit Card 1,371 bn 1% 1,394 bn 2% -1.3% QoQ 1,376 bn +0.4% YTD 2% Retail Personal Loan 2% 2% 2% 2% 2% 3% Used Car 16% Retail HP 29% 29% 30% Retail Mortgage 23% 23% 23% Small and 8% 8% 8% Medium SME* Corporate Cash Your Car (CYC) 14% New Car 70% Cash Your Book (CYB) 0.1% Breakdown Retail HP 411 bn 35% 34% 32% Note: * Small SME from THB 0-100 mn turnovers, Medium SME from THB 100-400 mn Dec-21 Sep-22 Dec-22 • • . • Quality loan growth remained our key strategy in 2022. Therefore, loan resumption was selective and focused more on retail loans as we planned to enhance yields by shifting a portfolio mix toward retail segments. 2022 loan expansion came as planned. Retail segment grew by +5.0% YTD, driven by post-merger's strengths and revamped group structure. Car loan and home loan were our target areas and we could grow the portfolios by +4.3% and +3.2%, respectively. Growth in consumer lending products such as personal loans (+8.4% YTD) and credit card (+15.7% YTD) was boosted by "ttb consumer", our new subsidiary. Commercial loan, on the other hand, declined by -5.7% YTD due mainly to corporate loan repayment which was a result of our short-term tactics. In 1H22, we strategically parked excess liquidity from pre-funding deposit strategy in commercial loans before redeploying for retail loan growth in 2H22. And we remained conservative on SME portfolio and continued to de-risk the port. For QoQ momentum, loans grew from retail products; HP +1.5% QoQ, mortgage +0.7% QoQ, personal loan +4.5% QoQ and credit card +13.2% QoQ. The corporate loan and SME declined -6.3% QoQ and -1.3% QoQ in line with our SME de-risking strategy.#10Strategically building strong deposit franchise amid rate hike cycle Total Deposit +1.9% QoQ TD+NCD 1,360 bn 12% 1,374 bn 15% 1,399 bn +4.5% YTD 17% 47% 45% 43% Hybrid Saving 34% ~41% CASA 34% ~40% 34% CASA ~40% CASA Current 7% 6% 6% Dec-21 Sep-22 Dec-22 % Retail deposits 74% 73% 73% tub • • • Key deposit strategy in 2022 was to prepare our deposit structure ahead of rising rate environment. Since 4Q21, we started to build term-funding base and strategically shifted a growth driver from our flagship Hybrid deposits toward time deposit. Key objective is to build and secure term-funding base for future loan growth at lower cost before rate hikes. "Up and Up" is our tactical time deposit (TD) product for this strategy. Its 6-month step up interest rate features is attractive for customers while for the Bank this feature is superior than traditional time deposits in terms of deposit cost optimization. Overall, we could grow time deposit by 46.8% in 2022. The portion of time deposit rose from 12% in 2021 to 17% of total deposit while low-cost CASA at 40%. Our flagship transactional deposit "All Free" continued to grow by +4.8%. The decline in Hybrid deposit was due partly to the outflow to Up and Up. Moving into 2023, we will continue grow deposit franchise through our flagship products and build new ecosystem that would help we penetrate more new-to-bank customers and use TTB as their main bank. 10#11Starting to see a payoff from pre-fund strategy after a short-term impact on NII tub +23 bps QoQ 4.69% +21 bps YoY 4.52% +1 bps YoY 4.48% 4.47% 4.46% 4.42% Loan Yield 4.51% Pre-funded strategy +3 bps QoQ 0.75% 0.78% 0.81% 0.79% 0.82% +7 bps YoY 0.80% +3 bps YoY Cost of Deposit 0.77% Y2021 4Q21 1Q22 2Q22 3Q22 4Q22 Y2022 • During low-rate environment, TTB took initiatives to pre-position our B/S ahead of rising rate environment. • Since 4Q21, we have strategically acquired Up and Up time deposit, a 24-month Time Deposit with 6-month step up interest feature, to build and lock in term funding base. Although this strategy put pressure on deposit cost, it started to pay off when entering into rising rate cycle. In 2022, TTB could grow deposit by 4.5% and cost of deposit rose by 3 bps YoY. Loan yield started to improve in 2H22 after we successfully redeployed funding from low-yield corporate lending to higher yield areas of HP and mortgage to maintain our market share as well as consumer lending especially in Cash Your Car (CYC), credit card and personal loans. As a result of such a strategy, yield improved significantly during 4Q22. Our strategy to grow in HP and mortgage as well as our strategy to increase retail high yield loans would be supportive factors for loan yield recovery for year 2023. 11#12NIM and NII showing positive momentum, driven by strategic B/S initiatives Ub Net Interest Margin (NIM) and Net Interest Income NIM 2.97% 51,000 THB million +18 bps QoQ +12 bps YoY 3.10% 2.98% 2.91% 2.92% 2.95% -2 bps YoY 2.83% +7% QoQ 13,826 +8% YoY 12,769 12,968 12,409 12,414 51,617 +1% YoY Y2021 4Q21 1Q22 2Q22 3Q22 4Q22 Y2022 • Apart from deposit and loan strategy, we've shortened investment portfolio to minimize the negative impact of mark-to-market loss during rate hike cycle. We also increased floating rate bond investment portion and that allows the Bank to have flexible repricing opportunity. This reflected our flexible and effective B/S management. • As a result of B/S initiatives, NIM continued to improve +18 bps QoQ from in 3Q22. Key drivers were yield on loans (+24 bps QoQ), followed by yield on interbank and money market (+43 bps QoQ) and yield on investment (+10 bps QoQ) 12#13Win-win solution in repurchasing AT1 with gain and capital utilization tub THB million Total Non-NII 14,537 14,236 -2% YoY 3,288 3,845 +17% YoY +19% QoQ +7% YoY Total Non-NII 11,248 3,739 4,014 10,391 -8% YoY 3,365 3,475 Other Non-NII 746 903 830 Net fee and service income 2,993 2,462 2,645 3,381 847 2,534 +49% QoQ 1,264 +69% YoY 2,750 +9% QoQ -8% YoY 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 • • During Sep-Nov 22, the Bank initiated AT1 repurchase transaction of approx. US$154 mn, equivalent to 38.6% of total AT 1 outstanding. Key objective is to enhance equity holder value. Back in 2019, the purpose of AT1 issuance was to close potential fund-raising gap. Now that the Bank successfully completed merger transaction and has robust capitals, Hybrid Tier 1 is no longer needed. With this action, the Bank recognized gains of THB 65 mn in 3Q22 and THB 463 mn in 4Q22. Net fee income improved QoQ driven mainly by auto-bancassurance and credit card fee, but fee from mutual fund business was slowdown as unfavorable market situation still affected customers' investment appetite. Details of strategy Non-NII are in the following page. 13#14Better performing YoY for most strategic fee products, except MF fee Breakdown Strategic Non-NII Products Bancassurance fee * (Included ttb broker) THB million tub 1,579 Mutual fund fee 433 TF and FX fee +5% QoQ +11% YoY 1,325 1,613 1,671 1,758 6,368 +9% YoY 5,847 2,448 -4% QoQ -34% YoY -47% YoY 1,299 393 322 299 286 -9% QoQ -1% YoY 1,558 1,687 +8% YoY 404 448 400 440 400 LG fee +2% QoQ +9% YoY 547 573 139 138 136 148 151 Loan-related fee +5% YOY +66% YoY -9% QoQ 336 +280% YoY 203 23 66 89 95 86 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 ■ 2022 strategic fee engines improved YoY, boosted by BA fee and other strategic commercial fees. • However, MF fees remained a challenge and still suffered from weak market sentiment and is the key reason of YoY drop in net fee income while other fee engines showed recovery trend. Retail fees: Bancassurance maintained good momentum on the back of foundation upgrade, changing service model, offering variety product mix. Auto-bancassurance also showed good traction in 4Q22 during Motor Expo in November. Commercial fees: Overall flagship commercial fees continued to grow YoY. Growth in loan related fee was aligned with better business volume following country reopening. TF and FX fee increased from high customers' volume when compared to previous year. However, with Thai Baht appreciation to its strongest level in December 22, exporters started to delay hedging activities. Moreover, Thailand's export and import volume dropped from 3Q22. As a result, FX fee in December declined. In 2023, the Bank plans to capture potential cross-selling opportunity from Merged Bank's customer base and enhance alternatives fee incomes from ecosystem's initiatives towards new digital sales and new service model platform. Commercial fees would come from converting acquired loans to fee income to improve fee-to-assets. *TMBThanachart Broker (ttb broker), our fully owned subsidiary - operating non-life brokerage business, has become increasingly important to auto car insurance. The plan is to move car insurance renewal to service at ttb broker and improve sale efficiency in branch staffs. 14#15Benefiting from cost synergy, especially a reduction in recurring expenses Ub Total Operating Income Total Operating Expense & C/I Ratio THB million Total Operating Income 65,537 65,852 Flat YoY THB million 49% 48% C/I 44% 45% 45% 46% 45% 14,537 14,236 -2% YoY Ratio +9% QoQ, +8% YoY 51,000 51,617 +1% YoY Non-NII 16,508 15,774 15,889 16,349 17,840 3,739 3,365 3,475 3,381 +19% QoQ, 4,014 +7% YoY NII 12,769 12,409 12,414 12,968 13,826 +7% QoQ, +8% YoY 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 31,219 29,952 -4% YoY +11% QoQ +3% YoY Total 7,999 6,987 7,262 7,447 8,256 Operating Expenses -|| 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 Total operating income grew both QoQ and YoY in 4Q22, supported by NII recovery from loan expansion and benefit from B/S initiatives to prepare for rising rate cycle while growth in Non-NII was boosted by gains from AT1-debt instrument repurchase transaction. For 2022, the Bank's Non-NII performance was weighed down by selective growth strategy and slowdown in mutual fund business due mainly to fluctuations in global market. Total operating income was flat YoY and recorded at THB 65.9 bn. As per business plan, operating expense in 4Q22 increased from the ramp- up of digital investment and seasonal expenses to support business growth. Full-year 2022, OPEX declined by 4%, supported by a strong decline in recurrent expenses while cost saving synergies support the investment for efficiency improvement and digital transformation. C/I ratio, hence, was end at 45%. Our plan is to achieve C/I ratio at low-40s in the next 3 years. 15#16PPOP growth, boosted by both profitability and cost efficiency THB million Pre-Provision Operating Profit (PPOP) 8,461 8,818 8,752 8,963 9,636 +8% QoQ +14% YoY 34,300 36,169 +5% YoY || 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 . • Recurring cost was under control, reflected by lower cost base and together with an improvement in core earnings, PPOP grew by 5% YoY to THB 36.2 bn in 2022. Both QoQ and YoY growths of PPOP in 4Q22 were driven by strategic initiatives (preparing B/S ahead of rate hike cycle, loan expansion in targeted areas and capital management initiative from the AT1 partial buy-back). tub 16#17With core operating improvement and lower provision underpinning by controllable asset quality, Net Profit +36% YoY ECL & Credit Cost Expected credit loss (ECL) (THB million) Annualized credit cost (bps) Net Profit THB million Utb 157 146 142 138 133 127 124 5,017 4,808 4,382 4,361 +10% QoQ 4,802 -4% YoY 21,514 18,353 -15% YoY +4% QoQ 2,799 3,195 3,438 3,715 3,847 +37% YoY 10,474 14,195 +36% YoY 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 TTB's portfolio quality is well under control as a result of prudent risk management and conservative initiatives during COVID-19. Credit cost, therefore, was in downward trend comparing to 2021 & 2020. Stage 3 ratio was at 2.7%, below the guidance (≤3.2%). With the one-time gain from AT1 buy back and NPL sale opportunity in 4Q22, the Bank decided not to reverse provision and set-up higher ECL level for prudence. In parallel, we cleaned up B/S and further de-risk portfolio and ensure healthiness of our asset quality. Overall, 2022 provision was down by 15% YoY and recorded credit cost at 133 bps, below 2022 target range. The level of ECL is prudent and includes forward-looking approach and additional MO in preparation for unforeseen circumstance and economic headwinds. 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 Robust growth (+36% YoY) in net profit was supported by NII recovery, cost discipline and lower ECL. 4Q22 net profit increased by +4% QoQ and +37% YoY. RoE also improved by 158 bps YoY and registered at 6.6%. For 2023, the Bank plans to enhance Merged bank's customer base for cross-selling opportunity thru ecosystem's initiatives as well as to increase our fair share in consumer lending space to enhance loan yield. We will continue to improve earnings capability to generate sustainable returns to our shareholders. 17#18Y2022 Performance Asset Quality Target 2023 tub 18#19Limited portion of deep restructuring in our modified portfolio tub Total modified portfolio (Pre-COVID and during COVID) THB trillion ■Blue Orange Non-modified 1.39 1.36 1.37 1.38 % Non-modified 79% 84% 89% 88% to total loans % Modified to total loans 21% 16% Dec-20 • • . • • 11% 12% -12% -8% ~3% -3% -8% ~4% • Dec-21 Sep-22 Dec-22 Internal data for managerial view - Loan principals excluded interbank Note: Modified loans = Legacy restructured loans (before Covid-19) + Loan under debt relief program Customers' financial support has been migrated to a comprehensive debt restructuring as the BoT's debt relief program expired. To be prudent, our modified portfolio covers all types of modified loans, including legacy restructured loans (modified before Covid-19) and modified loans under debt relief program. Overall, the trend remained manageable and under control. As of 4Q22, modified loans slightly increased QoQ as we have tightened the exit criteria; and together with a decline in loans outstanding, % modified loans to total portfolio was at 12%. Zooming in modified loan quality, currently approx. 8% of total loans was in light modified terms, comparable to the BoT's Orange scheme (term extension, grace period). Only approx. 4% was in deep modification or comparable to the BoT's Blue scheme. Under the prolonged economic recovery, TTB has been prudent and taken pre- cautious approaches in managing loan modification to ensure the quality of our balance sheet and to mitigate downside risks. In addition to a stringent loan modification policy, we also ensure that our staging classification can capture and truly reflect customers' debt payment behaviors (DPD profile) in order to provide sufficient and rational level of provision. 19#20Ensuring provision adequacy in response to Covid-19 crisis Guiding Principle of Post Relief Risk Schemes Repayment Schedule Scheme Interest Staging Minimum PD Level Principal SC 1 Full Full Mostly 1 Normal SC 2 Full Partial Mostly 1 SC 3 Full Postponed Mostly 2 SC 4 Partial Postponed Mostly 2&3 SC 5 Additional skip payment ≤ 6 months Mostly 2&3 SC 6 Additional skip payment ≥ 6-12 months Mostly 2&3 SC 7 Additional skip payment ≥ 12 months Mostly 3 100% tub • To have effective management of the portfolios quality, our 7 post relief schemes have been used for both Covid-19 debt reliefs and legacy portfolio - collectively "Modified Portfolio". The framework proved to be efficient in tracking and trace their quality, so that corresponding PDs could be applied and to separate them from customers never ask for relief support. The elevated PDs are applied to both principal and accrued interest of these customers group, hence higher ECL to reflect higher risk. On top of that we have tightened policy in staging and provisioning in 2022, with focus on for those who requested for SC3-SC7. SC3-SC7: Provisioning is set aside by using lifetime PD, same approach as stage 2 provisioning. SC3-SC7: 100% Management Overlay is set aside for accrued interest not already covered by PD. ECL model calibration was completed in 1Q22 by updating PD and LGD parameters in all portfolios, including forward looking economic scenarios and applied stress test method in setting up management overlay to address economic uncertainties. Continuation of prudence and persistency in supporting customer with assets warehousing program, proactive portfolio recovery, written off and sales, and with report from independent model validator on our ECL model, we believe asset quality is in-control and the provision level as at Dec-22 considered sufficient. 20#21Prudent loan staging with higher LLR buffer DPD Profile VS Loan Staging Internal data for managerial view - Breakdown as % of Loan principals (excluded interbank) 4.0% 4.0% LLR Total loans* 3.1% DPD Staging DPD Staging DPD Staging DPD 4.1% >20% increase in LLR from pre-Covid tub Staging DPD Profile No DPD Bucket 1 DPD 1-30 DPD 31-60 Bucket 2 DPD 61-90 Bucket 3 DPD >90 Loan Staging 94.5% 93.4% 88.9% 93.2% 93.8% 88.6% 88.5% Stage 1 87.1% Stage 2 Stage 3 2.7% 2.8% Pre-Covid Dec-19 Note: * include accrued 10.1% 2.8% 3.6% 3.0% Dec-21 8.1% 3.0% 3.7% 3.1% 8.5% 3.0% 8.4% 3.9% 2.3% 3.0% interest receivables and EIR Sep-22 Dec-22 The Bank's 7 scheme picks up days past due within stages and imposes bucket and PD shifts. Our stage 2 loans, therefore, sufficiently cover early indicators of customers' behavior in debt service ability. With improving profitability, we further de-risked our portfolio and qualitatively downgraded weak loan to Stage 2 and stage 3 in 4Q22, reflected by the gab between the % of stage 3 and the % of bucket 3. On top of the prudent staging policy, we continue to build LLR buffer. Compared to pre-Covid-19, LLR rose by more than 20% to THB 57.4 bn. LLR/total loans therefore rose from 3.1% as of Dec-19 to 4.1% as of Dec-22. 21#22Strengthening portfolio quality Loan Classification (%) Pre-Covid-19 1.60 tn 1,427 bn Stage 1 Stage2 Stage 3 14.30% 1.50 tn 1.54 tn 1.53 tn 1,380 bn 1,373 bn 1,347 bn 89.0% Stage 1 89.8% Stage 1 8.3% Stage 2 7.4% Stage 2 89.6% Stage 1 7.7% Stage 2 89.8% Stage 1 7.5% Stage 2 2.76% Stage 3 2.81% Stage 3 2.72% Stage 3 2.73% Stage 3 132 bn 111 bn 118 bn 115 bn 44.1 bn 42.1 bn 41.9 bn 41.7 bn Mar-20 Stage 2+3 177 bn Dec-21 153 bn Sep-22 Dec-22 2010 160 bn 157 bn NPL Ratio/Stage 3 TFRS9 Utb 2.98%2.81% 2.73% 2.76% 2020 2021 2022 Dec-22 • • Apart from conservative loan staging approach, we have proactively resolved NPLs to de-risk our portfolio and keep our balance sheet clean. As a result, the level of weak loans or stage 2+3 have been under control and lower than pre-Covid 19 level. For resolution activities, NPL value preservation is one of key factors. In 4Q22, the Bank saw market opportunities and could accelerate NPL sales from THB 0.95 bn in 3Q22 to THB 4.5 bn while write-off was relatively stable QoQ at THB 3.3 bn. Therefore, Stage 3 loans declined to THB 41.7 bn, -1.0% YTD. • NPL or stage 3 ratio was well-contained and dropped from 2.98%, a Covid-19 peak level in 3Q21, to 2.81% as of Dec-21 and to 2.73% as of Dec-22. Note: Total loans to customers and interbank 22#23Building up reserve for future uncertainties Distribution of Risk Provision • LLR Ratio (%) 131% 124% 125% 121% 129% 132% 133% 135% 138% Allowance for ECL 52.0 53.8 54.4 53.9 54.5 55.5 55.0 56.6 57.4 (THB billion) Stage 1 10.1 11.1 12.6 12.4 12.4 12.6 12.8 12.5 13.3 Stage 2 Stage 3 21.9 21.6 21.0 21.7 22.1 23.1 23.9 25.2 24.5 19.2 21.8 20.8 19.8 20.0 19.8 18.3 18.9 19.6 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Coverage by stage Stage 1 Stage 2 Stage 3 0.9% 17.7% 47.3% 0.8% 18.5% 49.3% 1.0% 18.0% 47.1% 1.0% 18.1% 44.1% 1.0% 19.6% 47.1% 1.0% 20.3% 46.9% 1.0% 20.3% 44.3% 1.0% 21.0% 45.0% 1.1% 20.9% 47.0% +19 bps from 4Q20 +324 bps from 4Q20 -28 bps from 4Q20 Loan loss buffer has been strengthened. We consistently review our conservative ECL model and closely monitor customers' behavior to ensure sufficient levels of LLR and the distribution of risk provision. • As of Dec-22, LLR rose further to THB 57.4 bn and NPL coverage ratio or LLR ratio increased to 138%. tub 23#24Accrued interest reflecting our conservative approach 1st phase of debt relief (Full lockdown) Accrued interest 3rd phase of debt relief (partial lockdown) 9,209 7,522 7,145 7,130 7,232 7,369 7,148 7,351 7,499 7,777 Approx. -16% from peak in 3Q20 6,442 7,720 6,440 2,759 5,143 6,444 6,497 6,793 6,998 7,148 7,351 7,499 7,777 2,036 Accrued Int. Stage 1 & 2 Accrued Int. Stage 3 1,300 1,489 No stage 3 accrued interest risk 723 1,082 701 634 439 371 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 tub • TTB has continued to take conservative approach in revenue recognition for accrued interest treatment during the pandemic and under the current economic condition. In Jan-21, the Bank took conservative approach in revenue recognition for accrued interest treatment during the pandemic. Stage 3 accrued interest has been provisioning at full amount to preemptively limit future downside risk. We believe this will help improve quality of balance sheets and mitigate the risk of overstated net interest income. Overall, total accrued interest trend continuously declined from the peak in 3Q20 and stabilized during muted loan growth period. However, we do not expect a downward trend in accrued interest as we continue to resume loan growth as well as still provide financial supports to customers during this prolonged economic recovery. Note: *4Q20 accrued interest was restated and presented net from allowances for expected credit loss to be comparable with 2021 24#25Y2022 Performance Asset Quality Target 2023 tub 25#26TTB's 2023 financial targets Loan Growth Approx. +3% Deposit Growth NIM Non-NII Growth C/I Ratio Stage 3 Ratio Credit Cost In line with loan growth 3.0%-3.10% 2.95% in 2022, 3.01% excluded PPA Low single digit growth Mid-40s from 2022 of 45% or 43.9% excluded PPA ≤ 2.9% 2.73% in 2022 125-135 bps 133 bps in 2022 • • tub Loan growth target reflects our direction to maintain a selective growth strategy and prudent portfolio management under rate hike cycle and recession risk in major economies in 2023. Given our current portfolio structure, there is still room to enhance yields by gearing toward retail segment and leverage our post-merger customer base. Our plan is to acquire quality HP and housing loans to maintain leading position in these markets while ttb consumer will ramp up our presence in consumer lending area. Deposit growth will be aligned with loan growth to ensure profitability margin in 2023. In addition to our strong retail deposit franchise, ecosystem initiatives would be one of deposit growth drivers. We intend to maximize payroll customer value by deepening engagement with both employers and employees via comprehensive payroll benefits and tax planning solution. Long-term game plan is to improve CASA mix and aim for efficient cost of deposit. NIM enhancement will come from our selective loan growth strategy which will ensure the quality of interest income stream, coupled with balance sheet initiative to improve earning asset yields and funding costs amid rising rate environment and the resumed contribution to FIDF (FIDF fee). We will continue to capture potential cross-selling opportunity from post-merger customer base and enhance alternative fee incomes from ecosystem initiatives. Commercial fees would come from converting the acquired loan customers to fee income to improve fee-to-assets. Cost synergies over the past 3 years were captured faster than plan. Going forward, the Bank will accelerate digital transformation thru One app platform to reduce cost per transaction. OPEX would increase to support business growth and C/I ratio is expected to remain at mid-40s in 2023, with a plan to achieve a low-40s level in the next 3 years. After battling with Covid-19 for 3 years, Thai economy is set to return to pre-pandemic levels. Nonetheless, the recovery is clouded by possibility of global headwinds such as US recessions, inflation, weakening demand from major trading partners. With this outlook, the Bank will maintain vigilant on asset quality while ensuring efficient NPL resolution to preserve value of the bad bank side. • The higher bound of Stage 3 ratio is expected at 2.9%, lower than 2022 guidance (≤ 3.2%). Such a level implies credit cost of approx. 125 bps to 135 bps which already takes into account loan expansion plan, de-risking activities and asset quality trend. In our view, LLR at the level of 120%-130% is sufficient and prudent based on our portfolio nature which is retail secured-lending base. 26#27Appendix: ttb's Sustainability tub 27#282022 Sustainability Update 2022 Sustainability Highlights Business Sustainability > THB 1,672 mn Debt consolidation program > THB 41 mb of accident protection and life insurance claims for All Free customers MM 29% increase in number of TSP customers 41% increase in DCA TSP customers 65% Transactional Net Promoter Score Corporate Governance and Business Ethics #1 in Fair Finance Thailand for 4 consecutive years 100% of 3rd party data processors signed PDPA and DPA O case of significant data breach 100% of board participated in ESG training B Environmental Sustainability USD 150 million Green and blue bond issuance > THB 12,635 mn green and blue loan setup* THB 2,000 mn Sustainability-linked loan to support blue finance 27% reduction of tobacco exposure with commitment to exit by 2023 38% reduction of coal-fired power plant exposure with commitment to exit by 2028 * Commercial green loan setup as of end of FY2022 and EV loan setup as of Nov 2022 ttb Social Sustainability THB 318 mn positive environmental and social impact SME loan 2 45 payroll companies TITY participated in Fin live & learn programs THB 38 mn CSR development programs > 48,000 people benefited from CSR programs THB 184 mn Donation via Punboon from >200k donors 28#29Sustainability ratings & certification FairFinance® Thailand Sustainability Excellence THSI THAILAND SUSTAINABILITY INVESTMENT 2022 Sustainability Yearbook Member 2022 S&P Global 1st place in Fair Finance Thailand ranking for 4 consecutive years (2019- 2022) Inclusion in Thailand Sustainability Investment. (THSI) since 2018 FTSE4Good Inclusion in FTSE4Good for 7 consecutive years since 2016 1st time included in S&P Global's Sustainability Yearbook 2022 * CAC CERTIFIED Governance OD Thai Institute of Directors Environment ASIAN AWARDS ASSET * COUNTE שה * AWARDS Social Bloomberg Gender-Equality Index 2023 Certified as a member of Collective Action Coalition Against Corruption (CAC) since 2014 * Assessment based on 2021 performance Excellent level in IOD's Corporate Governance Report of Thai Listed Companies (CGR) The Asset Triple A Country Awards for Sustainable Finance 2022 for Best Issuer for Sustainable Finance and Best Blue Bond 1st time listed in Bloomberg Gender-Equality Index (GEI) 2022* 29 29 tub#30TTB's Sustainability tub We strive to integrate sustainability into our business and to ensure that our strategic objectives do not only fulfil short-term goals, but also contribute to long-term sustainable growth. Sustainability Governance Sustainability Framework Sustainability KPIs Board of Directors (Sub-committee: NRCC) Chief Executive Committee Sustainability (Under Strategy) Sustainability Related Functions Business Sustainability To shift towards a sustainable business model in order to create long-term financial growth and embed responsible practices Environmental Sustainability To minimize our direct and indirect environmental impacts Sustainability Framework Corporate Governance & Business Ethics To ensure effective governance, risk management and internal controls, and to foster ethical culture Social Sustainability To continuously enhance human capital management and contribute to the sustainable development of youth and community Corporate KPIs 10% Sustainability KPIs 30#31Business Sustainability tub As we go forward on the path of sustainable banking and become the recommended bank of choice, digital banking is imperative for us to strive and deliver best-deal personalized solutions by life-stage and life-event through humanized digital platforms. Ecosystems for financial well-being Mindful Spending & Maximizing Savings Continued penetration of All Free accounts with >700k new accounts/year together with adoption of high-yield saving No Fixed at >30% Car owner ecosystem To develop long-term relationship with car-owners throughout cars' life cycle and lessening the burden of owning cars 6:13 ttb Salaryman ecosystem To deepen engagement with employer and employee via comprehensive payroll benefits and tax planning solution อรุณสวัสดีครับ ขอให้วันนี้เป็นวันที aaclarosu โอนเงิน จ่ายบิล ถอนเงิน neoidu Quo Uryd ooaáws Home owner ecosystem To raise awareness on their collateral value and engagement via beyond banking services related to home ownership XXX-X-XX123-4 analuso หน้าหลัก = aunu OR กริประโยชน์ Boodu เพิ่มเม бониа > Healthy Borrowing 1,672 mb debt consolidation amount (+50% yoy) Investing for Future +41% yoy in number of customers who set up new DCA in TSP driving discipline to achieve their financial goals Sufficient Protection >41 mb (+72% yoy) medical and life insurance claims for customers with All Free accounts 31#32Corporate Governance & Business Ethics Our governance is based on policies and practices that ensure accountability, fairness and transparency. With good corporate governance, risk management and internal control, the Bank is more resilient and prepared for new challenges. It allows the Bank to operate effectively and sustainably. Corporate Governance Accountability . • IOD's CGR score of 94 Board diversity 3 female board members out of 14 (21.4%) Business Ethics & Market Conduct A ווי Market conduct • Market conduct is one of bank's key priorities with tone from the top (BOD) and executives. Board reviews monthly report of market conduct performance. Market Conduct Monitoring Dashboard enables us to assess overall performance and quickly identify areas required attention Training All employees completed 9 mandatory training i.e., PDPA, AML/CTPF, market conduct, deposit protection, non-financial risk management, fraud risk management, anti-corruption, cybersecurity risk awareness, and code of conduct tub Cybersecurity and Data Privacy Cybersecurity • • Zero significant data breach case All employees completed Cybersecurity Risk Awareness training Data privacy • • 100% of 3rd party data processors signed PDPA and DPA All employees completed PDPA training 32#33Environmental Sustainability tub We promote responsible and sustainable financing by assessing clients' long-term environmental, social and governance impacts. At the same time, we manage our direct environmental footprints to improve operational and resource efficiency. Responsible Lending Long-term commitment • • The bank will not finance any new coal-fired power plant projects with the commitment to exit by 2028. 38% reduction of the exposure since announced in 2020. The bank will exit from the tobacco industry by 2023*. 27% reduction of the exposure since announced in 2020. Exclusion List • 27 business activities E&S risk screening • 100% of commercial lending is in line with ESR policy Sustainable Finance Green and blue loan > THB 12,635 mn green and blue loan setup ** Sustainability-linked loan THB 2,000 mn Sustainability-linked loan to support blue finance ESG funds Offering 5 ESG funds Green and blue bond . Issued 100 MUSD green bond and 50 MUSD blue bond (1st company to issue blue bond in Asia) and established ttb Green and Blue Bond Framework in lining with ICMA GBP and IFC Blue Finance Guidelines with SPO Our Environmental Impacts Electricity consumption . Electricity consumption reduced by 25%, achieved 2022 target of 10% reduction compared to 2019 Water consumption • Water consumption reduced by 37%, achieved 2022 target of 10% reduction compared to 2019 *This does not apply to the entire tobacco value chain, specifically parties that are not fully dedicated to tobacco (i.e., retailers that sell tobacco products, or companies engaged in transportation and packaging) ** Commercial green loan setup as of end of FY2022 and EV loan setup as of Nov 2022 33#34Social Sustainability We embrace the diversity of workforce and build the skills and capability of our workforce. Also, we contribute to the sustainable development of youth and community and promote financial inclusion and literacy for those financially vulnerable to have a life-long financial well-being. 00 Our People Growth and development . • All employees completed mandatory training Average training of 58 hours per employee over target of 40 hours Innovation driven workforce 73 projects from >730 employees participated in ttb awards 2022 contest Engaged workforce • Promoting I-CARE culture Group-wide employee engagement survey Financial Inclusion & Literacy Positive environmental and social impact loan 318 mb to SMEs whose businesses contribute positive environmental and social impacts Financial literacy 45 payroll companies participated in Fin live & learn where 3,442 of their employees received trainings on financial literacy programs 500 SME clients are engaged both offline and online via finbiz program fin finbiz live & learn butb by Utb CSR ttb fai-fah by ttb . ไฟ-ฟ้า 3,149 employee volunteers จุดประกายเยาวชนและชุมชน . 41,523 people in communities and Ub • . 32 fai-fah for communities projects 6,731 youths benefited from fai-fah program Total CSR contribution of THB 38 mn Juuy Punboon • • • Funds raised via Punboon > THB 184 mn Number of donors on Punboon increased from 2021 by 116% A total of 248 foundations on Punboon platform with needs in different areas e.g., education, hospitality, vulnerable groups, etc. 34#35Disclaimer: The information in this material is in summary form and does not purport to be complete. No representation or warranty, express or implied, is or should be made concerning, and no reliance should be place on, the accuracy, fairness, or completeness of this information and liability therefore is disclaimed. TTBThanachart Bank Public Company Limited (the "Bank" or "ttb" or "TTB") does not independently verified, approved or endorsed the information contained herein, or undertakes to update or revise any information, whether as a result of new information, future events or otherwise. The material to be presented may contain certain forward-looking statements and information regarding the Company that reflect current views and/or expectations of the Company with respect to its performance, business and future events. Statements relating to achieving certain goals are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Past performance does not guarantee or predict future performance. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, currency exchange rates, competition from other companies, shifts in customer demands, customers and partners, changes in operating expenses including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. You are cautioned not to place reliance on these forward-looking statements, which are based on current view of the management on future events. The Company does not assume any responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for, sell or purchase any securities. Neither this material nor anything contained herein shall form the basis of any contract or commitment whatsoever. The recipients of this presentation should not make any investment or business decision or take actions in reliance on the information and statements contained in this presentation and must conduct their own investigation and analysis of the contemplated transaction and the information and data contained herein. This presentation is being made available on a confidential basis and intended only for the recipients, and may not be copied, reproduced, retransmitted or distributed by a recipient to any other persons in any manner. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the foregoing limitations and conditions. ทีเอ็มบีธนชาต TMBThanachart ttbbank.com 1428 f LINE Ο in Make REAL Change