#1K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK KASIKORNBANK Investor Presentation as of 4Q22 (Updated Economic Data) March 2023 For further information, please contact the Investor Relations Unit or visit our website at www.kasikornbank.com บริการทุกระดับประทับใจ K KASIKORNTHAI KASIKORNBANK at a Glance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Established on June 8, 1945 with registered capital of Bt5mn (USD0.15mn) ■Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of December 2022) Assets Loans 1) Deposits CAR ROE ROA Number of Branches Number of E-Machine (ATM/RCM) Number of K PLUS Users Number of Employees 5) Share Information SET Symbol Share Capital: Authorized Issued and Paid-up Number of Shares Market Capitalization 4Q22 Avg. Share Price: KBANK KBANK-F EPS BVPS Notes: Bt4,246bn (USD122.9bn) Bt2,495bn (USD72.2bn) Bt2,749bn (USD79.5bn) 18.81% 3) 7.38% 4) 0.86% 824 10,953 20mn Ranked #2 with 16.38% market share²) Ranked #2 with 16.36% market share²) Ranked #1 with 17.15% market share²) Bank only 18,840/ Consolidated 31,469 KBANK, KBANK-F Bt30.2bn (USD0.87bn) Bt23.7bn (USD0.69bn) 2.4bn shares Bt349.5bn (USD10.1bn) Bt144.49 (USD4.18) Bt144.43 (USD4.18) Bt14.78 (USD0.43) Bt205.85 (USD5.96) Ranked #2 in Thai banking sector Member of Dow Jones Sustainability Indices. Powered by the S&P Global CSA Sustainability Award Gold Class 2022 S&P Global FTSE4Good 1 1) Loans Loans to customers 2) Assets, loans and deposits market share is based on C.B.1.1 (Monthly statement of assets and liabilities) of 18 Thai commercial banks as of December 2022 3) Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from 1 January 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisted of KBank, K Companies and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd. and other subsidiaries within the permitted scope from the BOT's to be financial conglomerate. 4) ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments 5) Consolidated Number of employees includes employees of KBank, the wholly-owned subsidiaries of KBank and support service providers of KBank. Exchange rate at the end of December 2022 (Mid Rate) was Bt34.56 per USD (Source: Bank of Thailand) บริการทุกระดับประทับใจ 2#2K KASIKORNTHAI Table of Contents Operating Environment ■2023 Financial Targets ■The K-Strategy Financial Performance ■Capital and Dividend ■Summary ■ Appendix K KASIKORNTHAI Appendix Topic บริการทุกระดับประทับใจ Topic ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page 5-6 7-8 9-10 11 - 17 18-19 20 21 - 165 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page KBank Strategy Business Highlights Risk and Credit Management Financial Performance 22-48 49-57 58-67 68-85 • 2022 Highlights 69-71 • Interest Income - net 72 ° Non-interest Income 73 • Net Fee Income 74-75 Other Operating Expenses 76 Loan 77-78 • Asset Quality 79-81 Investment in Securities and Funding Structure 82-85 The Wholly-owned Subsidiaries 86-93 Muang Thai Life Assurance (MTL) 94-102 ➤ Other Information 103-117 ■Banking System and Regulations Update ■Government Policy ■Thai Economic Figures ■IR Contact Information and Disclaimer 118-127 128-142 143-163 164-165 บริการทุกระดับประทับใจ 3 4#3K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2023 (As of March 2023) ΥΟΥ Key GDP Forecasts and Assumptions 1.5 2.6 3.7 -6.1 2020 2021 2022 2023F % YoY 2020 2021 2022 2023F* (Jan 23) 2023F* (Mar 23) Key Points: ■Thai GDP is expected to grow 3.7% in 2023, driven by a strong rebound in tourism sector ■However, waning global economic momentum will put downward pressure on Thai export sector; the Thai economy will experience a K-shaped uneven recovery ■Headline inflation is expected to subside to 2.8% ■Thai GDP may return to its pre-COVID-19 level in 2023 GDP -6.1 1.5 2.6 3.7 3.7 Private Consumption -0.8 0.6 6.3 3.3 3.3 Government Consumption 1.4 3.7 0.0 -1.0 -1.0 Total Investment -4.8 3.1 2.3 2.3 2.3 - Private investment -8.1 3.0 5.1 2.8 2.8 - Public investment 5.1 3.4 -4.9 2.3 2.3 Gov't Budget Deficit (% of GDP) -5.2 -4.8 -3.5 -4.0 -3.8 Exports (Customs Basis) -5.9 17.4 5.5 -0.5 -1.2 Imports (Customs Basis) -12.7 29.5 13.6 -2.1 -2.4 Current Account (USD bn) 21.2 -10.6 -16.9 5.0 6.0 Headline Inflation -0.8 1.2 6.1 3.2 2.8 Avg Dubai Oil Price 42.2 68.8 97.0 90.0 80.0 Risk Factors: ■Global economic slowdown ■Uncertainty from Western banking turmoil ■■Volatility in energy and other commodity prices ■Fed rate hike cycle and Thai Baht volatility ■Ongoing geopolitical risks No. of Foreign Tourists (Mn) 6.7 0.4 11.2 25.5 Policy Interest Rate** 0.50 0.50 1.25 1.75 28.5 2.00 ■ Household and business balance sheet deterioration Notes: MPC's policy rate is at 1.75% (as of March 29, 2023) Source: COVID-19 Vaccination rate in Thailand*** (March 10, 2023): First dose 82.8%, Second dose 77.8%, Third dose and more 50.3% of targeted people KResearch (as of March 31, 2023) ** KBank Capital Markets Research (as of March 29, 2023) *** Ministry of Public Health บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2023 (As of March 2023) ■Global Economy ■ Government Stimulus Plan ■Inflation ■Exports and Tourism ■Fed Policy Normalization ■ Baht Outlook ■ Global economy: Global economy is expected to decelerate in 2023 amid persistent inflation and continuous rate hikes by central banks around the world while uncertainty remains with geopolitical issues and banking sector turmoil ■US: US economy is likely to face a significant slowdown in 2023 due to Fed's aggressive interest rate hikes while banking sector turmoil may pose additional risks to the economy ■ Eurozone: Eurozone economy is likely to face a significant slowdown in 2023 amid elevated inflation and tightening policy ■China: Chinese economy is expected expand at a higher rate due to the relaxation of COVID restrictions, but risks remain given ongoing property market slump and global economic slowdown ■ ASEAN economies: ASEAN economies will likely experience slower growth amid global economic slowdown, persistent inflation, and tighter financial conditions ■The delay in government formation and budget approval for the 2024 fiscal year would impact the budget disbursement and the implementation of economic stimulus measures, especially in 4Q23 onwards ■Headline inflation is expected to subside to 2.8% in 2023 as fuel prices are likely to be lower than last year despite OPEC oil production cut. However, inflation is unlikely to drop rapidly, given ongoing cost pass-through and lower government subsidies. ■Thai exports may experience negative growth in 2023, given global economic slowdown, lower commodity prices, and a high base in 2022 ■The number of tourist arrivals in 2023 is expected to accelerate to 28.5 million ■The Fed will need to weigh the impact of the collapse of the regional lenders in deciding how much to raise interest rates going forward ■Fed's interest rates at the end of 2023 are expected to be 4.75%-5.00% ■Baht fluctuated around Bt33.00-35.00 per USD amid global financial market turmoil. As Fed moves closer to its terminal rates with banking sector risks, the US dollar seems to lose its gauge ■ At 2023 year-end, Baht will reach Bt33.50-34.00 per USD, as Thai economy continues to recover, due to recovery of tourism with supporting sentiment from tourism amid China early reopening and a surplus expectations on Thai current account surplus Source: KResearch (as of March 31, 2023), and KBank Capital Markets Research (as of March 29, 2023) บริการทุกระดับประทับใจ Possible Impacts to Thai Economy ■Thai economy, especially export sector, is increasingly tilted to the downside amid increasing global economic risks ■Fading government stimuli will weigh on Thai economic recovery in 2023 ■ Domestic consumer spending is expected to weaken amid persistent inflation and fading pent-up demand ■Strong rebound in tourism sector will continue to be the main driving factor for the Thai economy, while export slump will put downward pressure on the Thai economy ■■BOT is expected to continue its gradual rate hike, amid decreasing inflation ■BOT's interest rate expected to be 2.00% at the end of 2023 ■USD/THB confirmed its appreciation, supported by a down cycle of the USD and China's reopening ■Looking forward, continuous recovery of Thai tourism will bring the current account back to surplus for 2023, while pressure from energy prices will lessen amid oversupply concerns 5 6#4K KASIKORNTHAI Y2022 Financial Performance Consolidated ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK NIM 2021 Actual Y2022 Actual Y2022 Targets 3.21% 3.33% Notes (Y2022) Y2022 NIM increased YoY due to higher yield on loans as small 3.15-3.30% ticket lending (SME and Retail) increased, and higher lending rates. More than 90% of interest income received in cash. Loan Growth 7.88% 3.03% 6-8% Net Fee Income 7.01% -6.89% Growth* Y2022 loans grew YoY mainly from corporate business and small ticket lending (SME and Retail) while home loan decreased. However, loans decreased in 2H22 from NPL outflow management. Y2022 net fee income decreased YoY mainly due to a decrease in fees from fund management and brokerage business in line with Flat growth market conditions and drop in transaction service fee rate, while fees from card business increased according to customer spending. Cost to Income Ratio** 43.49% 43.15% Low to Mid-40s Credit Cost per 173 bps year (bps) NPL Ratio (Gross)*** ROE**** ROA Y2022 cost to income ratio slightly decreased YoY from net total income increased, while higher operating expense (mainly from marketing and IT expense). Focus on cost management and productivity improvement, with new investments for future growth. Credit cost increased YoY due to prudent consideration of the 211 bps Up to 160 bps uncertain economic outlook and business strategy. NPL ratio dropped from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL 3.7-4.0% management. Asset quality is manageable with closely monitored and constantly reviewed. 3.76% 3.19% 8.44% 0.98% 7.38% 0.86% N/A N/A Note: * Net Fee Income = Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ K KASIKORNTHAI Y2023 Financial Targets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 7 NIM Consolidated Loan Growth Net Fee Income Growth* Y2022 Actual 2022 2023 NDR Targets NDR Targets 3.33% 3.15-3.3% 3.3-3.45% 3.03% 6-8% 5-7% -6.89% Flat Flat Low to Mid-40s Cost to Income Ratio** 43.15% Low to Mid-40s Credit Cost per year 211 bps (bps) NPL Ratio (Gross)*** ROE**** ROA 3.19% 7.38% 0.86% Up to 160 bps 3.7-4.0% < 3.25% N/A N/A N/A N/A Notes (Y2023) NIM rising due to higher interest rates and small ticket size lending strategy, despite higher FIDF contribution. Loans increase from regional expansion strategy and more corporate lending; continued focus on quality using effective data analytics capability. Net fee income may decrease from lower conventional transaction fees due to changing consumer behavior; wealth management business continues to expand. Moderate revenue growth; projecting higher potential investment expenses for future growth; continuing cost management and productivity improvements. Credit cost peaked in Y2022. Continue proactive asset quality 175-200 bps clean up and prudent financial policy; credit cost will remain high but gradually drop in Y2023. The credit cost will cover future uncertainties, in line with global economic circumstances and business strategy. Note: *Net Fee Income Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 8#5K KASIKORNTHAI KASIKORNBANK Vision, Purpose and Culture Vision Purpose Customer Promise BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" To Empower Every Customer's Life and Business Total Solution Attentive & Inclusive Any Time & Any Where Trustworthy K-Culture Leadership A PIONEER FOR THE BETTER, A STEP AHEAD FOREVER Customer at Heart | Collaboration | Agility | Innovativeness | Integrity PURPOSEFUL AND PRACTICAL LEADERSHIP บริการทุกระดับประทับใจ K KASIKORNTHAI The K-Strategy ■ K-Strategy is reimagined to drive growth and empower customer Vision Sustainable Development Purpose BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" ESG Beyond Banking & Innovation Strong Brand To Empower Every Customer's Life and Business Growth Strategy PAY Dominate Digital Payment Reimagine Commercial & Consumer Lending Data Key Capabilities 898 Democratize Investment & Insurance Penetrate Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT 9 10#6K KASIKORNTHAI Classified Loans ■ ☐ Cleaning up balance sheet for sustainable normalization will continue Global and local economic risks post challenges for our prudent policy ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Total loan and AIR Bt2,480bn Bt2,511bn Total loan allowance Bt121.2bn Bt133.5bn (4.9% of loan and AIR) (5.3% of loan and AIR) % Comprehensive 6.3% 6.9% %NPL coverage 149% 154% debt restructuring Stage3 Stage3 Bt88bn 3.6% Bt93bn 3.7% Stage2 Bt187bn 7.5% Stage2 Bt188bn 7.5% Stage1 Bt2205bn 88.9% Stage1 Bt2230bn 88.8% Sep 2022 Dec 2022 บริการทุกระดับประทับใจ Stage3 Bt37.6bn %ECL 42.5% Stage2 Bt40.9bn %ECL 21.9% Stage1 Bt42.7bn %ECL 1.9% Sep 2022 Stage3 Bt40.8bn %ECL 43.8% Stage2 Bt46.1bn %ECL 24.5% Stage1 Bt46.6bn %ECL 2.1% Dec 2022 K KASIKORNTHAI Composition of Growth: Loans by Business Moderate loan growth momentum in line with full-year target Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio Consolidated (Bt bn) Dec 21 2,800 2,400 2,421 2,495 Amount (Bt bn) Dec 22 Y2022 Y2022 Y2023 Loan Growth Yield Range Loan Growth Target 2,245 (%) (%) 1,914 2,002 Corporate Loans 816 880 7.8% 2-4% 2,000 34% 36% Corporate 36% SME Loans 793 780 (1.6%) 5-7% 1,600 36% 35% 1,200 33% 31% 33% ■SME ■Retail Retail Loans 711 703 (1.2%) 5-7% 35% 34% Other Loans 101 132 30.4% 800 Others 400 0 25% 4% 28% 28% 29% 4% 10 2018 2019 3% 2020 4% 2021 28% 5% Total Loans ¹) 2,422 2,495 3.0% 5.0% (%) 4-6% 1-2% 2-4% 5-7% 2022 Y2022 Note: From time to time, the Bank has adjusted loan definitions based on loan portfolio management; thus, the latest loan base is not comparable with previous reports. 1) Y2022 other loans was included loans through the World Business Group of Bt82bn, increased 73.1% YoY 2023 Outlook 11 Corporate Loans SME Loans Retail Loans Loan Definition ■ Loan portfolio grew both short-term and long-term loans from financial institutions, commerce, consumer products, food and beverages, and chemicals industries. ■ SME loans outstanding slightly decreased with an aim to control and mitigate credit risk ■ However, KBank still provided various product offerings matched to customers' needs with risk-based offerings through "Self-Apply" via digital channels ■ Retail loans outstanding slightly decreased mainly from housing loans which were affected by market competition. However, credit card showed improvement with higher spending in shopping, tourism, and restaurant categories ■ Personal loans grew from "unsecured customer" segment onboarding through "Self-Apply" via digital channels ■ Continued use of data analytics to continuously improve predictive power of credit model and credit process in order to acquire new customer segments with acceptable risk for both SME and Retail Loans Corporate Loans: Loans of KBank and KBank's Subsidiaries in Corporate Segments (annual sales tumover > Bt400mn) SMĖ Loans: Loans of KBank and KBank's Subsidiaries in SME Segments (annual sales tumover ≤ Bt400mn) Retail Loans: Loans of KBank and KBank's Subsidiaries in Retail Segments ■ Focus on supporting ESG loans in prospective industries ■ Potential loan growth in some sectors to support business opportunities ■ Grow prudently in line with market situation ■ Use data analytics to expand credit opportunities in specific industries ■ Continuously focus on small enterprises and self-employed customers with various product offerings matched to their needs and through digital channels with risk-based pricing ■ Promote business growth of healthy SME customers and accelerate supports to at-risk SMEs to maximize recovery ■ Maintain lead position in consumer market and be "1st in mind" to our customers and prospects ■ Grow prudently in line with market situation ■ Focus on intelligent lending by using data analytics to offer products and promotions aligned with customers' needs ■ Focus on acquiring "small-pocket" customers with acceptable risk and proactive monitoring to manage loan portfolio quality ■ Focus on generating additional revenue from existing credit customers Other Loans: Composed of loans through the World Business Group, insurance business (MTL), and other loan types not directly attributable to loans บริการทุกระดับประทับใจ Enterprise Risk Management Division (Net Performing Restructured 9 Loans) reclassified customer segments. 12#7K KASIKORNTHAI Net Interest Margin December 2022 (Consolidated) (%) 5 NIM (%) 8 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Yield on Earnings Assets and Cost of Fund 4 3.39 3.31 3.27 3.21 3.33 6 5.29 5.21 4.82 4.97 4.71 Yield on Loans 4.27 3 4.19 3.83 3.79 4 3.64 Yield on Earnings Assets 2 1 III 0 2018 2019 2020** 2021 2022 2 1.19 1.23 0.78 0.59 0.62 Cost of Fund 1.11 1.14 0 0.71 0.54 0.53 Cost of Deposits* 2018 2019 2020 2021 2022 ■NIM was 3.33% in 2022, increased YoY, due to higher yield on loans as small ticket lending (SME and Retail) increased, and higher lending rate. More than 90% of interest income received in cash. 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 NIM (%) 3.39 3.31 3.27 3.21 3.33 3.19 3.21 3.33 3.62 Yield on Earnings Assets (%) 4.27 4.19 3.83 3.64 3.79 3.61 3.64 3.78 4.14 Yield on Loans (%) 5.29 5.21 4.82 4.71 4.97 4.76 4.75 4.92 5.37 Cost of Fund (%) 1.19 1.23 0.78 0.59 0.62 0.57 0.59 0.61 0.71 Cost of Deposits (%), incl DPA 1.11 1.14 0.71 0.54 0.53 0.52 0.51 0.52 0.58 Note: Cost of deposits including contributions to the Financial Institutions Development Fund (FIDF) and Deposit Protection Agency (DPA). * The FIDF fee is temporarily reduce from 0.46% to 0.23% for 3 years, according to the BOT announcement in the Royal Gazette, during January 2020 to December 2022. ** The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 13 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Composition of Growth: Net Fees and Non-interest Income December 2022 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio (Bt bn) 173.26 200 155.48 160.49 154.89 163.35 I 50% (-1%) (+3%) (+5%) (-3%) (+6%) 37% 40% 36% 150 23% 27% 30% 37% 36% 30% 27% I 30% 25% 23% 21% 22% 23% 100 19% 20% 50 63% 64% 70% 73% 77% 10% 0 0% 2018 2019 2020* 2018 2021 2022 ■Net interest income Non-interest income (+2%) Non-interest Income Other operating income. ■Fee and Service Income - net (Bt bn) 70 56.95 57.80 (-9%) 60 3% 3% 45.87 43.96 50 (-21%) (-4%) 4% 3% 40.26 -8% YoY) 5% Net earned premium - net 40 67% 64% 30 72% 80% Dividend Income 2020* 2019 2021 Non-interest income ratio Net Fee income ratio Net Fee Income 2022 (Bt bn) 38.12 36.74 33.00 35.32 40 (-8%) (-4%) (-10%) (+7%) 32.88 1 (-7%) 30 82% Share of profit from investments on equity method 20 20 6% 0.1 0.1% 4% Gain on investments 15% 16% 14% 5% 3% 18% 8% 10 9% 0.3% 13% Gain on financial instrument measured at 0 20.3% FVTPL 0 2018 2019 2020 2021 2022 -8% (Gain on Trading and FX transactions-Old) 2018 2019 2020* 2021 2022 -10 Note: Non-interest Income Ratio = Non-interest Income/Total Operating Income - net -Net Fee Income Ratio = Net Fee Income / Total Operating Income - net 10 5% -0.3% -1% -2% 13% 20 ■Y2022 non-interest income accounted for 23% of total net operating income and net fee income accounted for 19%; non-interest income decreased -8% YoY, mainly due to a decrease in net fee income and net premiums earned - net Y2022 net fee income decreased -7% YoY, mainly due to a decrease in fees from fund management and brokerage business in line with market conditions and drop in transaction service fee rate, while fees from card business increased according to customer spending. - Net Premium Earned - net = Net Premium Earned less Underwriting Expense The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 14#8K KASIKORNTHAI Cost to Income Ratio December 2022 (Consolidated) Cost to Income Ratio (%) ེ g བྷཱུ 8 ྨ༅༠ 40 30 20 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Cost to Average Assets Ratio (%) 43.96 45.32 45.19 43.49 43.15 6 4 2.26 2.26 2.01 1.83 1.79 2 2018 2019 2020* 2021 2022 0 2018 2019 2020* 2021 2022 ■Y2022 cost to income ratio was 43.15%, slightly decreased YoY from net total income increased, while higher operating expense (mainly from marketing and IT expense). Focus on cost management and productivity improvement, with new investments for future growth. 2018 2019 Cost to Income Ratio (%) 43.96 45.32 2020 45.19 2021 2022 1Q22 2Q22 43.49 43.15 42.82 43.53 3Q22 43.73 4Q22 42.60 Cost to Average Assets Ratio (%) 2.26 2.26 2.01 1.83 1.79 1.69 1.74 1.73 1.99 Note: * The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 15 K KASIKORNTHAI Asset Quality and Expected Credit Loss (Provision) December 2022 (Consolidated) Expected credit loss (Provision) (Bt bn) During 1997 Asian Crisis* 54 50.6 49 44 44.1 39 34. 29 24 19 16.8 14 4 2.3 Coverage Ratio During 1997 Asian Crisis* 150 51.9 43.5 41.8 40.3 33.8 34.0 100 32.5 26.4 14.2 9.4 11.7 7.3 6.7 8.4 0.7 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1996 1997 1998 1999 2000 „IÏ. 1996 1997 1998 1999 2000 50 34.7 48.8 25.430.034.2 Note: Provision referred to Impairment Loss on Loans and Debt Securities; from January 1, 2020 onwards based on TFRS9, provision refers to Expected Credit Loss During 1997 Asian Crisis* 888 (%) 42.00 40 NPL Ratio and Credit Cost 154.3 159.1 160.6 141.4 148.5 149.2 134.5 127.1 130.0 148.6 111.0 91.6 131.8 130.9 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Asset quality is manageable with closely monitored and constantly reviewed. NPL ratio in Y2022 was at 3.19%, with coverage ratio of 154.26%. INPL ratio dropped YoY from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. Y2022 credit cost increased YoY due to prudent consideration of the uncertain economic outlook and business strategy. (bps) NPL ratio -Credit cost 900 30 40 31.70 723 23.50 700 500 20 20 287 168 204 239 175 174 205 211 173 300 10 44 15.90 102 66 64 66 85 96 10 5.10 NPL was peak at 42.3% in 1Q99 3.76 2.91 2.45 2.16 2.11 2.24 2.70 3.32 3.30 3.34 3.65 3.93 3.76 3.19 100 NPL Ratio by Business Corporate Business SME Business 0 -100 Retail Business*** 2017 2018 2019 2020 2021 2022 <2% <2% <2% <2% <2% <2% -5% -5% -6% <7% <7% <7% -4% -4% -4% <5% <5% <5% 1996 1997 1998 1999 2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2021 2022 Notes: * Data in 1996-1997 is KBank only ** The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). *** NPL ratio in retail business, excluding 180 dpd (days past due) of credit card and consumer loans for peer comparison บริการทุกระดับประทับใจ 16#9K KASIKORNTHAI ROA and ROE December 2022 (Consolidated) ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ROA (%) 2.5 (%) 24 ROE** 2.0 16 1.5 1.27 1.20 0.98 1.0 0.85 0.86 0.5 ཟླ 8 ༄ སྔ 。 + 20 10.61 9.90 8.44 7.10 7.38 0.0 0 2018 2019 2020* 2021 2022 2018 2019 2020* 2021 2022 ROA (%) ROE (%) 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 1.27 1.20 0.85 0.98 0.86 1.09 1.04 1.00 0.30 10.61 9.90 7.10 8.44 7.38 9.30 9.13 8.49 2.63 Note: The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). ** ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Capital (Reported Number: Excluding Net Profit of Each Period) December 2022 (Consolidated) Bank only Basel III KASIKORNBANK FINANCIAL CONGLOMERATE* Basel III (%) (%) 18.52 17.26 18.0 3.58 17.74 2.80 17.83 18.02 21.0 18.32 2.51 15.0 06814.9410 2.41.15.423-8815.96 18.0 2.42 19.62 3.43 18.80 2.67 18.77 18.81 2.28 15.0 1.97. 16.130 16.49 7 16.84 12.0 12.0 9.0 9.0 14.75 14.94 14.26 14.32 $14.93 15.90 16.19 15.48 15.46 15.86 6.0 6.0 3.0 3.0 0.0 0.0 2018 2019 CET1 AT1 2020** Tier1 2021 2022 ■Tier2 2022 Tier1 ■Tier2 Capital adequacy remains sufficient through the changing economic environment and to support business growth; maintained adequate Tier 1 ratio, as required under the Basel III and new requirements. 2018 2019 2020** 2021 CET1 AT1 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 Bank only CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period 17.26 18.52 17.74 17.83 18.02 17.44 17.34 18.22 14.75 14.94 14.94 15.42 15.96 15.33 15.26 16.14 18.02 15.96 KASIKORNBANK FINANCIAL CONGLOMERATE* CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period 18.32 15.90 19.62 16.19 18.80 16.13 18.77 16.49 18.81 16.84 18.34 16.35 18.37 16.39 19.19 18.81 17.21 16.84 Note: * KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisted of KBank, K Companies and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd. and other subsidiaries within the permitted scope from the BOT's to be financial conglomerate. Under Bank of Thailand regulations, net profit in the first half of the year is to be counted as capital after approval by the Board of Directors as per the Bank's regulations. Net profit in the second half of the year is also counted as capital after approval of the General Meeting of Shareholders. However, whenever a net loss occurs, the capital must be immediately reduced accordingly. ** The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 17 18#10K KASIKORNTHAI Dividend Dividend Per Share ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Dividend Payout Ratio 22.12 22.3222.51 (Bt) 5.00 5.0 4.00 4.00 4.00 4.00 4.00 4.00 50 -42.49 3.50 4.0 3.25 40 32.14 3.00 27.00 3.0 2.50 2.50 2.50 2.50 30 2.0 20 10 1.0 0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Interim Dividend 32.80 34.43* 27.83 29.40 26.96 28.75 23.73 23.91 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Dividend policy: both operating results and long-term returns to shareholders are taken into consideration in determining dividend payments, in order to ensure a sustainable and adequate capital level through the changing economic environment, the ongoing adoption of Basel III and new requirements. 2009 Dividend Per Share (Bt) 2.50 2010 2.50 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2.50 3.00 3.50 4.00 4.00 4.00 4.00 4.00 5.00 2.50 2021 3.25 2022 4.00 Dividend Payout Ratio (%) 42.49 32.14 27.00 22.12 22.32 22.51 27.83 26.96 32.80 29.40 34.43 23.73 23.91 28.75 Note: * The Board of Directors' Meeting No. 1/2020 held on 30 January 2020 has approved the share repurchase project for financial management purposes of KASIKORNBANK, not exceeding totaling 23,932,600 shares, equal to 1% of the total paid-up capital of the Bank and the maximum not exceeding Bt4,600mn, which was conducted through the Stock Exchange of Thailand during 14-27 February 2020, and the Bank had the resale period during 31 August 16 September 2020. By the end, the Bank was unable to resell as planned. To comply with laws and regulations, the Board of Directors' Meeting No. 11/2020, held on 18 September 2020, resolved to approve the decrease in paid-up capital of the Bank by writing off the unsold amount of the repurchasing shares in full. The Bank of Thailand has also approved the decrease in paid-up capital accordingly. - In 2020-2021, the BOT suspended the banks' interim dividend payment of Y2020 and allowed to pay dividend for Y2020 and Y2021 not exceed 50% of net profit for the previous year. - On June 2022, the BOT announced to remove the dividend payout ratio limit. - Dividend payout will be calculated based on dividend divided by net profit attributable to shareholders net of dividend on other equity instrument including additional Tier 1 instrument. บริการทุกระดับประทับใจ 19 K KASIKORNTHAI Summary ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■The K-Strategy: Customer Centricity remains our core philosophy with purpose to "Empower Every Customer's Life and Business" Balanced Growth: loans to grow carefully in line with economic conditions; appropriate liquidity maintained; manageable asset quality supported by strong risk management capabilities; prudent loan loss reserves; manageable cost to income ratio; appropriate ROE maintained Adequate Capital: Capital adequacy remains sufficient to support new business growth; adequate Tier 1 ratio as required under Basel III and new regulatory requirements amid uncertainties of global economy. ■ Sustainable Development: conducts business with the principles of a Bank of Sustainability, and appropriate risk management and good corporate governance principles; striving to balance economic, social, and environmental dimensions to achieve goals and create sustainable long-term returns บริการทุกระดับประทับใจ 20 20#11K KASIKORNTHAI Appendix ธนาคารกสิกรไทย HEATERG KASIKORNBANK K KASIKORNTHAI บริการทุกระดับประทับใจ KBank: Strategy ธนาคารกสิกรไทย HEREG KASIKORNBANK 21 21 บริการทุกระดับประทับใจ 22 222#12K KASIKORNTHAI Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Success is driven by continuous growth in number of customers and K PLUS users; highest Net Promoter Score among banks in Thailand Number of Customers* (mn) K+ K PLUS Users and Transactions** (mn) 31,750 15 10 225050 (+9.3%) 21.3 20 19.5 15 16.0 16.5 17.7 15.0 13.9 35,000 30,000 25,000 20,710 14,516 20,000 10 8,477 20.0 17.1 15,000 5,188 14.4 3,052 12.1 10,000 5 10.0 7.3 5,000 0 0 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Total Users -Number of Transactions (RHS) * Customers in Retail Business account for 92%, SME Business 8%, and Corporate Business less than 1% of customer portfolio ** Active users defined as minimum of 1 Login per month; 73% active users as of 2022 Net Promoter Score (NPS)*** (#1 among Banks in Thailand) 100 50 35 0 2020 63 2021 83 2022 *** NPS Study 2022 surveyed by The Nielsen Company during September to November 2022, measuring the willingness of customers to recommend a company's products or services to others บริการทุกระดับประทับใจ K KASIKORNTHAI The K-Strategy ■ K-Strategy is reimagined to drive growth and empower customer Vision Sustainable Development Purpose BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" ESG Beyond Banking & Innovation Strong Brand To Empower Every Customer's Life and Business PAY Growth Strategy Dominate Digital Payment Reimagine Commercial & Consumer Lending Data Key Capabilities 898 Democratize Investment & Insurance Penetrate Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT 23 24 224#13K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Company Structure by Investment Purpose Credit Wealth KLeasing KAsset Key Subsidiaries* KFactory & Equipment KSecurities MTL Payment Digital Asset & Beyond Banking KX Coral (NFT Marketplace Platform) KUBIX Regional Business KASIKORNTHAI BANK (Lao PDR) KASIKORNBANK (CHINA) KVF (KASIKORN VISION FINANCIAL) Bank Maspion (67.50%) KVISION KTech (China) KBTG Vietnam KLINE Wealth-related Company** JV/ IT Capability KBAO JK AMC Note: * Key subsidiaries as of 1 January 2023 ** Future investments E-money-related Company** CRM Platform Company** บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Investment for Financial Inclusion by Adopting Challenger Bank via Technology & Partnership Aimed at boosting access to banking services among Thailand's unbanked and underbanked population as well as very small businesses and the self-employed INVESTMENT IN EMERGING TECHNOLOGIES / COLLABORATIONS/ ACQUISITIONS These substantial investments will secure KBank significant additional capabilities to fulfil mission to broaden access to banking. 'FIRSTS' THREE TRANSFORMATIONAL 'Challenger Bank' Adopting 'challenger bank' to transform the way banking is done and people's expectations of their bank NEW SYSTEMS & PROCESSES FOR SIMPLER & FASTER LOAN CONSIDERATION KBank has already been trialing multiple new systems and processes in preparation for this strategic push. LINE Buy-Now-Pay-Later Loans for those who are self-employed or have no documents to prove income Loans Fairer for Micro Enterprises Using interviews and other technology-assisted assessments to approve loans Social Media Banking Loans via LINE BK BROADENING ACCESS UPCOUNTRY THROUGH MOM-AND-POP STORES KBank is working with a major retail group to give upcountry mom-and-pop store operators easier access to loans without collateral, as well as providing loans to the stores' customers. บริการทุกระดับประทับใจ 25 26#14K KASIKORNTHAI Growth Strategy: Dominate Digital Payment To increase digital market share and active K PLUS users PAY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK To make payment accessible anytime, anywhere for everyone with secure, convenient, and good customer experience Strategy Key Achievements in 2022 Howin ช้อปห้างเชินกริลง่ายๆ บ่ต้องใช้เงินสด! K Point Consumer Payment K PLUS Empower moment to pay anytime anywhere borderless experience with variety source of fund across channels Commercial Payment Enhance business opportunity and trustworthiness thru reliable payment solution and universal source of fund acceptance capability which fits domestic and overseas ecosystem Regional Payment Enrich CLMV customers' cross border payment experience with simple and cost-efficient solution by leveraging KBank local channels Note: *BNPL = Buy Now Pay Later • Multi Source of Funds on K PLUS - BNPL*, K Point, Partner Point 20 million K PLUS users (+17% YoY) • Real time, full payment covering all major corridors • Increase engagement and stickiness by embedding in customer everyday spending activities Merchant Solution for High Growth Segment • • Multi source of funds acceptance - BNPL*, K Point Uplifting merchant capability for cross platform, cross channel payment acceptance Trustworthy Payment Solution ⚫K BIZ new digital channel for small customers • Realtime Payment API 항API Application Programming Interface Bank โอนจ่ายง่าย ได้หลายบัญชี ทําได้ ในคลิกเดียว IK BIZ Dielen nem SUPPLER โลกุกธนาค 122 บริการทุกระดับประทับใจ +market 27 27 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Reimagine Commercial & Consumer Lending ■To increase consumer credit customer and support SME business with better asset quality To offer lending services with reasonable pricing to small-pocket customers to include everyone in society Strategy Penetrate Consumer Credit By selectively acquire new credit customers focusing on small- pocket segment, and focus on generating additional revenues from potential existing credit customers Support SME Business By promoting business growth of healthy SME customers and accelerating treatments for those SMEs in fragile condition to maximize recovery Leverage CBS relationship To access new business opportunity and to support transitioning into low-carbon business Key Achievements in 2022 853,000 newly acquired credit customers Self-apply channel on K PLUS for unsecured credit ⚫ 1.5 million applications/month: grew by 1.5X YOY ⚫ Bt76bn new bookings; 2X greater than assisted channels 40% reduction in credit model development time 66% reduction in time required for criteria adjustment Note: CBS Corporate Business Segment บริการทุกระดับประทับใจ KATER กสิกรโกยเปิดตัว "K PAY LATER" เป็นธนาคารแรก ช่วยคนตัวเล็กเข้าถึงสินเชื่อชื้อก่อนจ่ายทีหลัง สะดวกผ่าน 1 ไม่มีสลปเงินเดือนก็สมัครได้ 28#15K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Democratize Investment & Insurance To create long-term sustainable wealth empowerment to our customers throughout their wealth cycle Aspiration to grow wealth AUM and to acquire new investment and insurance customers Strategy Comprehensive Product Offerings o Personalized/customized product offerings to match customers' profile with competitive return and benefits o Product office transformation for advisory and product Sale & Service Model Enhancement with Digital Technology Enablement 。 Strengthening RM capability with wealth practitioners and wealth-advisory platform 。 Developing digital wealth app for integrated product suites with advisory contents and holistic portfolio о Enhance service and support through K-wealth call center K-Wealth Brand Strengthening o Top of mind in Wealth Management Key Achievements in 2022 High digital adoption by Mutual Fund customers on K PLUS : Wealth Plus: Multi-asset portfolio allocation utilizing data analytic models designed for small retail customers on KPlus. It is the leading product to bring new to mutual fund and help customers achieving long term goal with more than 70% DCA adoption. Whole Life and Health Insurance: • . • • #1 Bancassurance Channel for Whole Life & Health Insurance Awarded Health Insurance Products of The Year in 2020-2022: > Elite Health Plus: IPD Coverage Bt 20-100mn/yr, special OPD > DHealth Plus: IPD Coverage Bt5mn/time and standard room type Best selling Health Insurance Online in year 2021 "Pay when Sick (IPD+OPD)" Launched Varieties of Affordable Health Riders for small segment customers e.g. "Care Plus": cancer coverage Bt 1mn with premium only Bt1,000 KBank เมืองไทยประกันชีวิต พาการวัดแบบดิบ รอง แห่งปี 100 บริการทุกระดับประทับใจ unaonusedou Wang PLUS DHealth Product of the Year Best Life Insurance Product Theland 202 2020 29 29 K KASIKORNTHAI Growth Strategy: Penetrate Regional Market To increase AEC+3 customers and %net total income contribution ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK To achieve rapid regional digital expansion in AEC+3 using 3 strategic plays to build growth momentum and accelerate customer base development and financial return China Strategy AEC Key Achievements in 2022 A Aggressive Play: Aggressively grow corporate lending Serving Local Large Corporates, Thai Directed Investors and AEC+3 Investors Local Large Corporates Thai Direct Investment (TDI) AEC+3 Mass Acquisition Play: Acquire more consumers Acquiring local SME and individual customers via transactional banking channels and partners Business Retail B Acquiring local SME and individual customers via partners' platforms Business Retail Supply chain financing Retail online lending K-Cyber Banking C EDC Ecosystem Partners K+ ATM/ Agent Disruptive Play: Grow digital lending with more local partners Capturing credit needs of individual customers with high-yield credit via E2E online credit tech We have successfully established KBank footprints in every country in the region and offer international standard financial solutions to all customer segments. • KBank China became the biggest Thai bank in Shenzhen in terms of assets KBank Vietnam - Ho Chi Minh City (HCMC) branch was established in November 2021 with an aggressive customer acquisition execution resulting in more than 350K retail customers on K PLUS by 2022 KBank Cambodia - Phnom Penh branch captured local corporate customers and became the biggest Thai bank in Cambodia in terms of loan asset size • Successfully entered the market in Indonesia by becoming the controlling shareholder of Bank Maspion with a total stakes of 67.5% Better ME Better SME Note: EDC Electronic Data Capture Machine E2E = Enterprise to Enterprise Digital Lending Ecosysten บริการทุกระดับประทับใจ 30#16K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Penetrate Regional Market: Asset-Light Regional Expansion into AEC+3 ■Growth in regional markets: strategically focusing on AEC+3 markets, KBank pursues an integrated regional operating model: physical footprint, digital platform, and regional partnerships Physical Footprint South Korea China Lao PDR. Lao PDR. Cambodia Myanmar Vietnam Indonesia Japan China Note: Myanmar Indonesia Japan Cambodia Vietnam Two subsidiary banks: KASIKORNTHAI BANK (Lao PDR) with two branches in Ponesinuan and Lane Xang, KASIKORNBANK (CHINA) with three branches in Shenzhen, Chengdu, Shanghai and one sub-branch in Long Gang - Four international branches: Cayman Islands, Hong Kong, Phnom Penh and Ho Chi Minh City - Six representative offices: Beijing, Kunming, Tokyo, Yangon, Hanoi and Jakarta One strategic partner: Maspion Bank in Indonesia; KASIKORN Vision Financial Company Pte. Ltd. (KVF) signed a Conditional Sale and Purchase Agreement (CSPA) to purchase 67.50% of shares in Bank Maspion Indonesia from 9.99% current holding, which has finalized on December 9, 2022 (KBank and KVF together had held a total of 40% of shares in Bank Maspion Indonesia since October 28, 2022) - Global partners with 80 banks in 15 countries: 50 Japanese partner banks; 10 Chinese partner banks; 1 Hong Kong bank; 3 Korean partner banks; 12 ASEAN partner banks (in Vietnam, Indonesia, Lao PDR, Cambodia, Philippines, Brunei, Malaysia and Singapore); 3 European regional banks (in Germany and Italy) and 1 Indian Bank Digital Platform X-Border Multi-Currency Settlement X-Border THB Direct Settlement X-Border Retail Payment Partnership AEC C B BANK VietinBank CANADIA BANK PLC Hana Bank += AYA Bank 静岡銀行 A bank BCA KBZ BANK se BANK MASPION Maybank HACHIJUNI BANK S 中国民生银行 CHINA HINSHENG BANK CHUGOKU BANK [百十四銀行 A 愛知銀行 ...and others บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Strengthen Harmonized Sales and Service Experience ■Reshape channel mix and sales model according to evolving customer behavior, to deliver better experience and productivity Strategy Strengthen Digital-Led Sales and Service By enhancing KBank Platforms to fit each customer's needs, being where customers are through our connected platforms and offer K PLUS as the center of customer's identify and interaction Optimize Physical Service and Human Touch To provide suitable service level for each customer's segment and each touchpoint rather than One-Size Fit All and serve proactively through digital capabilities Enhance basic infrastructure to Harmonized Physical and Digital Customer Experience By implementing "Service Culture", "Feedback Loop" and "Knowledge Management" throughout the organization, enhancing "Risk and Fraud Management" and integrating "Customer Profile" though all channels Key Achievements in Y2022 #1 mobile banking in Thailand: 20.0 million total K PLUS users with 73% active rate Partners Partners in selected ecosystem (University and Healthcare, " E-commerce & Lifestyle platforms, E-wallet & Payment, and Joint Venture - Lending, Debt collection and Asset Management) BaaS KBank open API (QR payment, bill payment, slip verification, inward remittance, facial recognition, RP proxy, information sharing service via K+, pay with K+, KGP merchant payment platform and Fund Transfer) #1 NPS 2022 among banks in Thailand 824 branches and 10,953 ATMs and CDMs nationwide Over 240,000 banking agent touchpoints Note: RP Relying Party, KGP KASIKORN Global Payment NPS Net Promoter Score CDM Cash Deposit Machines บริการทุกระดับประทับใจ 31 32#17K KASIKORNTHAI Ecosystem Partnership & Harmonized Channel " ◉ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Orchestrating an ecosystem with partners and providing excellence throughout the customer journey Developing presence where customers are with an excellent customer experience Partnership Corporate SME Customers Retail 5 eWallet and Payment Grab Blue CONNECT University and Healthcare Chula YOUTRIP MLINE MAN Wong nai rabbit LINE Pay 支支付宝 ALIPAY WeChat Joint Venture หมอ พร้อม ปิ LINE for Co-Lending through LINE Platform E-Commerce & Lifestyle Platform/Co-Lending through Partners' Platform Laz Shopee JD CENTRAL D.CO.TH Thel Dolfin ตะวันแดง for Co-Lending through Carabao Conglomerate channels Venture Capital* Jmt for Debt Collection and Asset Management Business Ооквее Grab N Jitta aspire digio Rate FLOWACCOUNT NIUM HORGANICE DECENTRALIZED Robowealth seedcom cryptomind A alchemy Cing on Love CARRO PRIMO FoodStory BUZZEBEES HO T2P Sendo favstayên powoon set KiotViet P Note: Beacon Venture Capital, a wholly-owned venture capital fund of KBank, invests in companies and startups, via: Direct investment: a total fund size of USD185mn to invest in early to growth-stage technology startups covering not only FinTech but also consumer internet and enterprise technology, aiming to leverage new technology from startups to support KBank's businesses and ESG aspirations. However, the logos above only show a portion of our investment. Indirect investment: investments through VC Funds to enable KBank to leapfrog into the world arena and stay abreast of innovative technologies and business models in other regions, e.g. partnered as an LP with VC funds managed by Integra Partners (known as Dymon Asia Capital), Vertex Ventures, NYCA, Jerusalem Venture Partners, Pantera Capital, China Renaissance, Openspace Ventures, Do Ventures and StormBreaker. Alchemy coinvestment with Pantera บริการทุกระดับประทับใจ 33 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Harmonized Channels: Domestic Channels and No. of Transactions Branch I (-21) (-15) 1 (-10*) (-5*) E-Machine (ATM/CDM**) (-70) (+42) (+87*) (+47*) 958 11,985 10,973 10,981 10,911 10,953 10,998 11,000 886 860 839 824 829 819 2018 2019 2020 2021 2022 2022T 2023T 2018 2019 2020 2021 2022 2022T 2023T ** Cash Deposit Machine Mobile Banking Users (mn) Number of Transactions** *** K+ 1.5bn 2.0bn 2.7bn 3.8bn 5.4bn 7.5bn 8% 5% 4% 2% 1% (+3.9*) (+2.9) 1 (+4.0*) 13% 1% 10% 20% 28% Branch E-Machine (+2.7) 37% 48% Mobile Banking 23.9 86% 89% 20.0 21.1 78% 68% 17.1 58% 14.4 10.0 12.1 44% 2018 2019 2020 2021 2022 2022T 2023T 2017 2018 2019 2020 2021 2022 * Compared to Year-ended *** Transaction includes only cash deposit, cash withdrawal, payment and transfer บริการทุกระดับประทับใจ 34#18K KASIKORNTHAI Domestic Channels New KBank Branch (Hybrid Branch) KBank Community Branch (K Park) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK THE WISDOM Lounge This new branch design increases the flexibility and efficiency of branch banking services, assisting staff to smoothly facilitate customers' adoption of self-service machines and digital channels (K PLUS). ATM ATM E-Machine ตอนฯ ยืนยันตัวตน ATM As a community bank accommodating the daily needs of local people, K Park provides financial zones for transactions and co-working spaces, with a Kids Zone and other services from KBank partners all in the same place. KBank KBank Service ฝาก-ถอน-จ่ายบิล SERVICE|ยืนยันตัวตน เคแบงก์เซอร์วิส ใกล้ที่ไหน ไปที่นั่น An exclusive center providing a full range of services and facilities to High Net Worth Individuals and Affluent segments. KLOUD by KBank K CHECK ID invisalign Our enhanced self-service cash machines are a convenient touch point to authenticate all digital onboarding such as e-Savings and e-Wallet account. KBank Service - Banking Agents are business partners with extensive network coverage and extended service hours providing most banking services needed by retail customers. Digital Banking The 'KLOUD by KBank,' our new sustainable building in the center of Siam Square, creatively connects the young and vibrant Siam Square community while supporting ESG. K KBank ไม่ว่า สถานการณ์ ไหน เปิด K PLUS ก่อน KC+ ดีสารพลัส Digital Banking includes: ⚫ K BIZ ⚫ K PLUS . K-Corporate Connect . K-Payment Gateway K-PowerP@y (mPOS) ⚫ K PLUS SME ⚫ K SHOP บริการทุกระดับประทับใจ • LINE BK • MAKE Khunthong LINE KBank LIVE K KASIKORNTHAI Success Story of KLINE: Line BK Services 2022 Key Performance ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Savings B0.00 1.5% 35 Saving Accounts: 6.8mn Special Rate Accounts: October 2020 LINE BK Debit Cards: Credit Line Accounts: 170K 3 mn Launched October 2020 595K October 2020 - December 2021* February 2021 Line BK Platform User 2mn users Outstanding Loans 5bn Line BK Platform Users: 5.3 mn Outstanding Loans: 18.1 bn December 2021 Line BK Platform User 3.9mn users Outstanding Loans 14.7bn Note: During peak periods, LINE BK saw more than 40,000 loan applications on a single day and 30% of those approved had never received a loan before. ** From time to time, the Bank has adjusted loan definitions based on loan portfolio management; thus, the latest loan base is not comparable with previous reports. บริการทุกระดับประทับใจ 36#19K KASIKORNTHAI Data Analytics Reimagined K-Data Strategy: Capture Value at Scale Scale up INTELLEGENCE ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK To reach, understand & better provide product/service to wider customer groups CREDIT INVESTMENT Strategic Objectives and Initiatives Reach and offer right customer and approve qualified customer at the right moment with right pricing by intelligent data & analytics Decision support system to combine direct and indirect data for investment product recommendation PAYMENT Acquire digital data for Digital Consumer Intelligence FRAUD Cope with new digital fraud trends and able to promptly respond Productivity Balance customer experience with cost and risk control to create better value proposition Foundation 1. Simplified OPERATING MODEL 2. Scale DATA TALENT 3. Broaden DATA ACQUISITION 4. Uplift DATA FOUNDATION K บริการทุกระดับประทับใจ 5. Step up CULTURE CHANGE ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Performing Talent and Agile Organization 5 key elements to build customer empowerment organization ◉ 5 Data ▪ Purposeful & practical leadership ■ Service with integrity ■ Innovation via agility & collaboration Purposeful & Practical Leader with Excellent Service & Innovation Culture ■ Differentiated rewards to drive performance & attract talent ■ Total reward redesign to drive transformation Strategy- Driven Structure Performance- CUSTOMER EMPOWER- MENT Driven Reward 3 Making Lean & Empowered Decision- ■Multi-disciplinary teams to work on strategic execution pillar ■ More flexible (Agile); delayering to reduce hierarchy Aspiration O Customer obsession ■ More & meaningful innovation ■ Fast execution with flexibility Excellent collaboration ■ Best place to work, learn & lead ▪ Winning employee value proposition ■ New ways of hiring to attract new talent ■ Work-life harmony ☐ ■ Re-skilling & up-skilling via integrated development solution Differentiated Process Value Proposition & Integrated Development Technology บริการทุกระดับประทับใจ ■Remove unnecessary process bottlenecks ■ Autonomy & iterative experimentation 38 34 37#20K KASIKORNTHAI IT: KBTG Strategy and Innovation ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Build and Maintain the Technology that Empower Every Customer's Life and Business Aim to be ONE of the Best Tech Companies in Southeast Asia Strategy Key Achievements in 2022 Support Running the Bank " IT Project Delivery Excellence +144 New IT Projects Delivered in Y2022 Drive and manage IT project portfolio for on-time and on-budget delivery 400+ KBank Applications IT Brilliant Basics Maintain operational stability with uncompromised security World Class Tech Talent 1st Rank of Cyber Security BitSight Rating scored at 800 Fulfil, retain and uplift top tech talent capability towards a goal to be Forbes's World's Best Employers 2 Regional Development Sites Regional Expansion Support KBank regional expansion and apply innovation "From" and "To" regional Create the Future of Finance 1.5 Million users from Platform Businesses " Breakthrough Innovation kubiz Scale up existing innovation product and deliver business value/cost avoidance using advanced tech capabilities Raised Bt265mn from Destiny Token Deal The New S-Curve Explore and create new S-Curve product/investment in the area of Decentralized Finance (DeFi), Web 3.0 and metaverse that goes Beyond Banking Sold 162 NFTs Arts (130MB GMVs) via 'Coral' Platform coral bigfin Launched 'Bigfin', an asset investment analysis platform Note: KXVC First investment deal with "Forward" - Thai Blockchain-DeFi startup KASIKORN BUSINESS - TECHNOLOGY GROUP established with 5 companies, as a wholly-owned subsidiary of KASIKORNBANK; included in the KASIKORNBANK FINANICIAL CONGLOMERATE, as approved by the BOT in October 2015 บริการทุกระดับประทับใจ 39 K KASIKORNTHAI KBTG: Support Running the Bank Vision: ONE of the Best Tech Companies in Southeast Asia 2019 83 Project Delivery IT System Stability K PLUS Digital Users People < 5 hours 12.1 mn 1,332 2022 144 < 5 hours 20 mn 2,013 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2025 250 (+200%) < 5 hours +++ 1. IT Project Delivery Excellence Project Delivery Scale project delivery through transformation to support the expansion of project demand and complexity Scale Apply global best practices, processes and tools for transforming our IT delivery to overcome IT rapid changes 2. IT Brilliant Basics IT System Stability . Maintain over 400 applications with highest system availability o High system availability for customer at 99.95% (only 5-hour/year allow for critical applications) o High customer impact incident less than 10 times a year for critical applications o No high customer impact of security breach K PLUS Digital Users Ensure the best experience for customer by always optimizing front-end and back-end to support fast growing number of users บริการทุกระดับประทับใจ 3,000 (+125%) Note: % Growth against year 2019 3. World Class Tech Talent People . Increase resource capacity to support the project demand • Reduce the employee . retention within industry benchmark Increase capability for focused role to support sustainable growth 40 40#21K KASIKORNTHAI KBTG: Support Running the Bank ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 4. Regional Digital Expansion: Financial and Non-Financial Services Expansion in AEC+3 People's Republic of China Loans and supply chain products have been developed with more than 1 million customers on the Mainland KTECH (China) A fintech company wholly owned by KASIKORN VISION CO., LTD. (KVision) registered in Shenzhen, People's Republic of China, with registered capital of Bt1,300mn Primarily involved in the design and creation of IT systems, research of new technologies, and search for new business models conducive to digital banking and economic systems Promoting the expansion of financial science and technology to ASEAN countries and making Shenzhen an important node in the Belt and Road Initiative ■ Launched an online retail lending product with instant approval for KASIKORNBANK (CHINA) CO., LTD. As of September 2021, there were more than 10,000 customers using this service Lao People's Democratic Republic ■ 30 ATMs were installed in Vientiane to accommodate the use of e-Wallet and mobile banking applications Kingdom of Cambodia Launched an Internet banking service (IB) for corporate customers of KBank, Phnom Penh Branch, in August 2021 Vietnam ■ Our representative office in Ho Chi Minh City was upgraded to the status of an international branch - the first KBank branch in Vietnam. We have prioritized Internet banking, digital lending and funds transfer services with other financial institutions, both private and public Officially launched K PLUS Vietnam in March 2022, with key features such as bill payment, top up, create favorite transaction, and statement request, as well as new and enhanced features planned to deploy on a monthly basis Others ■ Worked with the Department of Consular Affairs, Ministry of Foreign Affairs, in developing an e-Visa system to be applied to visa holders from the People's Republic of China, South Korea, the United States of America, Canada, Norway, Sweden, and Denmark บริการทุกระดับประทับใจ K KASIKORNTHAI KBTG: Create the Future of Finance Scale-up Innovation Products & Partnerships Innovation MAKE Khunthong ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Launch New S-Curve Products kubiz Health and Insurance Ecosystem เมืองไทย ประกันภัย UANG THAI INSURAND THG 9 KX Vaccine Registration & Insurance Lead In house Al Highlights PAY LATER Marketing & Credit Intelligence Process Automation Facial Technology CeFi Be the Digital Asset Platform of Choice Defi Fully operated KX as 'Venture Builder' and established 'KX Venture Capital (KXVC)' as a global Web3 & Deep Tech Venture Investment coral Launch and scale Coral NFT Marketplace to be a top player bigfin Note: CeFi Centralized Finance; DeFi = Decentralized Finance; NFT = Non-fungible Token บริการทุกระดับประทับใจ Launched 'Bigfin' to become top-of- mind investor tool 41 42#22K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Creating the Future of Finance - Breakthrough Innovation Scale-up Innovation Products & Partnerships 1.1mn Users KhunThong Social chatbot helping friends settle expenses within a chat for a seamless payment experience make A 1mn Users MAKE by KBank A mobile banking application designed specifically for a new generation to personalize financial management Vaccine Registration (THG) Jointly developed with Thonburi Healthcare TG Group to serve as a main channel to register for appointments and make advance payment for Moderna vaccination via LINE application HOSPITEL ราย ประจ้า COVID-19 Hospitel Management Solution Worked with Praram9 Hospital in creating a registration system for asymptomatic COVID-19 patients in hospitals and those with minor symptoms InsurTech เมืองไทย ประกันภัย MUANG THAI INSURANCE A co-innovation project with Muang Thai Insurance Public Company Limited to build sophisticated Al model for car damage detection as a part of automated car insurance policy approvals. Self-service with car damage detection Al was launched with Progress Multi Insurance Broker (PMIB) in December 2021 Chula Care Application Application for Chula Hospital's patients with multiple services in one app; booking, queuing, and tele clinic services with various and convenient payment options via credit card, mobile banking, or K PLUS KBTG Kampus KBTG KAMPUS EMPOWERING TECH&RESEA AMPUS Partnership collaborations with national and global academic/ research institutions with the aim to solve Thailand's IT manpower shortage and strengthen Thai tech education ecosystem. Initiatives include tech up-skill/re-skill courses, apprenticeship & university degree co-design, and deep tech co- research with national & global institutes บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Create the Future of Finance - The New S-Curve KX coral Launch New S-Curve Products KASIKORN X (KX) Incubate, scale, and spin-off new S-Curve businesses in DeFi kubiz • Coral A non-fungible token (NFT) marketplace platform that comes with artists' authentication system and NFT trading using fiat currencies BigFin A digital asset investment analysis platform with features including running balance and transaction history with manual cost basis entry wwad ២ DESTINY TOKEN PARAGON Kubix Digital Asset (Kubix) A full-fledged platform on blockchain technology for asset tokenization services and digital tokens Destiny Token First Thai digital token for investment under collaboration between GDH and Broadcast Thai Television. 16K tokens sold (Bt265mn fund raised) M Token Airdropped utility token that offers privileges to Major Cineplex Group's M Gen and M Pass customers Z mit media lab • MIT Media Lab Member KBTG became a Consortium Research Lab Member at MIT Media Lab to jointly conduct research on innovative technologies, namely metaverse, blockchain, and decentralized finance (DeFi), as well as in other areas such as sustainability and education บริการทุกระดับประทับใจ 43 44#23K KASIKORNTHAI KBTG Buildings and Awards KBTG Main Building ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Innovative Firm / Product Awards UX AWARDS DESIGN reddot award product design 2022 UX Design Award (Product) from MAKE by KBank Reddot Design Award in Brands & Communication Design K-Stadium at KBTG Main Building BOX Creative Box for small meeting K>> K+ Building K+ BELL 05 04 ADAS RO Innovation Center NiɅ สํานักงานนวัตกรรมแห่งชาต National Innovation Award Innovation Organization (Merit Prize) People & ONEKBTG Culture Awards h HREXCELLENCE AWARDS2022 BEST COMPANIES TO WORK FOR IN ASIA 2022 Asian Experience Awards Employee Excellence Award in Most Innovative & Sustainable Office Design HR Excellence Award Excellence in Employee Engagement, Excellence in Employer Branding, Excellence in Workforce Mobility HR Asia Award Best Company to Work For in Asia Asian Experience Award in Employee Experience (from KBTG Inspire events & KBTG Thanks God It's Friyay) K+ Building: City-based KBTG office with co-working spaces บริการทุกระดับประทับใจ 45 45 K KASIKORNTHAI Proactive Risk & Compliance Management Value Enabler Partner with business and provide effective integrated risk solutions Key Capabilities ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK • Predictive and integrated customer segment-based credit analytics Intelligent fraud management in all key business processes Effective risk management execution for business partners and 3rd parties Enabling customers for ESG Transformation ■ Credit risk analytics & integrated credit portfolio planning & monitoring ▪ Enhanced fraud analytics & incident management ■ Customer data protection Value Protector Strengthen & secure our business to be resilient and sustainable • Prudent risk-based provision and capital management • Early error detection through effective quality assurance and fraud management Effective and proactive compliance management Customer data governance and management ☐ Organization-wide prudent risk culture Agile way of working and delivering integrated risk solutions บริการทุกระดับประทับใจ 46 46#24K KASIKORNTHAI Cyber Security ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Enhancing comprehensive cyber security and IT capabilities; addressing and aligning critical capabilities to fortify cyber security Protect KBank's Cyber Assets & Reputation and Deliver Security, Resilience, & Trustworthiness Vision Statement Customer Promise Protect Customer Assets with KBank Strategy Deliver Secure & Efficient KBank's Services & Workplace Ensure security of KBank's Services & the hybrid workplace while maintain services & works efficiency Provide secured services Strengthen Third Party Risk Management Standardize security controls for K Companies, P Companies, and manage 3rd party risks Cyber Hygiene Culture Ensure care & timely response for any cyber incidents Expand Detection & Response Increase Coverage of Cyber Incident Detection, and Standardized Security Response Cyber Hygiene Behaviors in Customer & Employee Work & Life 1 Strategic Capabilities Effective Risk Identification 2 Advanced Threat Prevention 3 Situation Awareness & Threat Detection 4 Effective Incident Response & Recovery 5 Cyber Hygiene Culture บริการทุกระดับประทับใจ K KASIKORNTHAI Improve Value-Based Productivity ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK A End-to-End Product Cost Reduction Reduce cost per unit as well as migrate onboarding and service transaction to automation B D E Channel Cost Optimization Reduce total channel cost per transaction Sales Productivity Improvement Increase sales by increasing coverage of potential customers and improve HROB current business Enhance IT Effectiveness Improve IT project management to ensure delivery is on time and on budget; remodel IT for better cost saving and avoidance Workforce Management Reskill and improve skills for the future บริการทุกระดับประทับใจ 47 48#25K KASIKORNTHAI KBank: Business Highlights บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK K KASIKORNTHAI Customer Segments Corporate Business Multi-Corporate Business Large Corporate Business Company with annual sales >Bt5,000mn ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Company with annual sales >Bt400mn to Bt5,000mn 49 SME Business Retail Business Medium Business Small & Micro Business High Net Worth Individual Affluent Individual or company with annual sales >Bt50mn to Bt400mn Individual or company with annual sales ≤ Bt50mn, and with commercial credit limit Bt15mn Middle Income Mass Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt50mn Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt10mn to < Bt50mn Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt15,000 to < Bt10mn Individual wealth with KBank and its wholly-owned subsidiaries* < Bt15,000 Customer-centric strategy: offering a full array of financial solutions and a satisfying experience to our customers ➤ Synergistic portfolio management by monitoring eight customer segments ▸ Offer financial solutions from among KBank, its wholly-owned subsidiaries, and the insurance company Make significant progress towards long-term aspirations; performance on track Note: *Wealth with KBank and its wholly-owned subsidiaries is defined as savings and investments, such as deposit products with KBank, mutual funds with KAsset; or the monthly income of an individual customer บริการทุกระดับประทับใจ 50#26K KASIKORNTHAI Revenue by Business December 2022 (Consolidated) Loans Portfolio structure Retail Business Corporate Business (29.7%) Average Yield: 5-7% (37.3%) Average Yield: 2-4% SME Business (33.0%) Average Yield: 5-7% ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Non-interest Income Retail Business (46.1%) Corporate Business (34.3%) SME Business (19.6%) * Non-interest income excludes capital market business, treasury business and others Note: Loan portion and loan yield of each customer segment includes loans from the Enterprise Risk Management Division (NPL + Performing Restructured Loans); figures are not comparable with loan data in other pages บริการทุกระดับประทับใจ K KASIKORNTHAI Corporate Business: Key Performance Multi-Corporate Business Large Corporate Business Medium Business Small & Micro Business High Net Worth Individual ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Affluent Middle Income Mass ■Aim to be trusted partner to enrich customers' businesses with best-in-class financial services and solutions Provide innovative and multi-sourced fund raising Offer total solutions for collection, payment, and settlement Enhance digital solutions and platforms Key Performance 51 Main Bank #1 Corporate Bond Underwriting #1 Mutual Fund Supervisor Increased Main Bank Status* to 40% in 2022 With 17% market share in 2022 • With 39% market share in 2022 30% 50% I 42% 43% 22% 20% 40% 37% 38% 39% 19% 19% 20% 17% 30% 10% (#2) (#3) (#1) 20% (#1) (#1) (#1) (#1) (#1) (#1) (#1) 10% 0% 2019 2020 2021 2022 2018 2019 2020 2021 2022 Source: The Thai Bond Market Association (ThaiBMA) Source: SEC (include PPF, IFF) 39% 40% 40% 34% 30% 20% 10% 0% 0% 2018 2018 2021 2022 Note: *Main Bank Status = % of customers in the market who use KBank and its wholly-owned subsidiaries as their main operating bank and/or main savings and investment bank and/or main borrowing bank ** MB = Multi-Corporate Business, CB = Large Corporate Business บริการทุกระดับประทับใจ 52 62#27K KASIKORNTHAI SME Business: Key Performance Multi-Corporate Business • • • Large Corporate Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Medium Business Small & Micro Business High Net Worth Individual Affluent Middle Income Mass Empower SMEs at every business stage Offering credit to small businesses, using data analytic capability, via appropriate channels Providing integrated payment solutions by embedding into ecosystems, both local and international Building opportunity for SMEs as the intermediary of holistic banking and beyond banking solutions Key Performance SME Main Bank Status 海#1 SME Lending #1 Remain No.1 with NPS score at 44* for SME Main Bank position with the best of branch staff & mobile applications for SME customers Strengthen #1 Main bank position Note: * Info as of Y2020 (SME NPS by BRS) Maintain No.1 position in SME products; especially commercial loans Highest share, 23% of SME credit outstanding as of September 2022 #1 in Market Share by SME loan outstanding 30% 23% 23% 23% 23% 21% 20% (#1) (#1) (#1) (#1) (#1) 10% 0% 2020 2021 1Q22 2Q22 3Q22 Source: Total SME loan outstanding from BOT Note: Main Bank Status = % of customers in the market who use KBank and its wholly-owned subsidiaries as their main operating bank and/or main savings and investment bank and/or main borrowing bank บริการทุกระดับประทับใจ 53 Internal Use Only K KASIKORNTHAI Private Banking Group: Key Performance Multi-Corporate Business . • Large Corporate Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Medium Business Small & Micro Business High Net Worth Individual Affluent Middle Income Mass International comprehensive wealth management services Cooperate with Lombard Odier to raise service and product standards to international levels Provide integrated wealth planning services, advising families on wealth management, continuity, and growth Enhance use of technology to improve client experience Build comprehensive client insights from data-mining #1 Market Share by # of customers •With 36% market share (12,851 customers) Key Performance í Growing AUM Bt779bn AUM in 2022; growth -1.1% in 2022 • AUM Breakdown: Investment 58% and Deposit 42% I (Bt bn) 37% 788 | 36% 800 775 779 36% 35% 35% 750 717 35% 687 34% 34% 34% 700 (#1) 34% 650 33% 600 2017 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Source: Private Banking Group (market share by number of customers) ■Focus Customers (Type of Customer): ➤ Sophisticated customers (over 70% of total customers); Non-Sophisticated customers ■Product Types and Services: ➤ Collaborate with Lombard Odier to develop innovative products; build capability via staff trainings and regular workshops; offer advisory services with close Chief Investment Officer collaborations; and offer referral offshore investment services ➤ Key product and services: Financial Products and Services: Investment Advisory Others: Financial Event & Privilege Non-Financial Products and Services: Family Wealth Planning & Real Estate บริการทุกระดับประทับใจ Note: High Net Worth Individual = Individual wealth with KBank and its wholly-owned subsidiaries > Bt50mn 54 554#28K KASIKORNTHAI Retail Business: Key Performance Multi-Corporate Business Large Corporate Business Medium Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Small & Micro Business High Net Worth Individual Affluent Middle Income Mass • . . . Empower Retail customers in everyday life Offering digital lending services to small-pocket customers to accelerate financial inclusion i.e., Buy-Now-Pay-Later Democratizing savings and investments through digital capability and integrated investment platform Strengthening digital-led experience with various ecosystems and by leveraging K Plus Connecting with partners and providing cross-platform loyalty program K+ #1 Digital banking ⚫ NPS: Mobile Banking Level by Nielsen 2022 • Recognition Award from national & international institutes #3 Mortgage loan outs Top 3 among commercial banks with 8.4% market share in 9M22; steady growth and maintain good portfolio quality Mortgage Loan 9.2% (% Market Share) 10% 8.3% 7.7% 5% Key Performance #1 Debit Card spending • Maintain top position by delivering value and benefits matching customer lifestyles Spending volume continuously growing > Bt96bn or increase 2% YoY #1 Mutual Fund AUM Highest share, 21.8% in Y2022 ⚫Highest share in Money Market & Fixed Income Fund, Term Fund and Foreign Investment Fund #1 Credit Card spending with 23.3% market share in 9M22 #2 No. cards ⚫ with 15.5% market share in 9M22 ⚫ Card-accepting merchant services (online & offline platforms): ranked #1, with 33% market share by sales volume in 9M22 #2 Bancassurance Premium • MTL ranked #2 in total, new business and renewal premiums with 9M22 market share of 17.1%, 19.0%, and 16.0% respectively. Bancassurance Mutual Fund 9.4% 8.4% (% Market Share) 30% 22.1% 20.5% 20.1% 21.8% 21.8% 20% (% Market Share) 30% 20% -15.8% 28.5% 24.8% 23.8% 23.0% 21.8% 20.1% 19.3% 19.9% 16.6% 17.18.4% 19.0% 17.1% 16.0% 10% 0% 0% 10% 0% + 2018 2019 2020 2021 9M22 2018 2019 2020 2021 2022 2018 2019 บริการทุกระดับประทับใจ New Business 2020 Total Premium 2021 9M22 Renewal Premium 55 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank and MTL Enter the 10 Years Bancassurance Agreement ■This transaction is a connected transaction, per Thai regulations, as it is conducted with MTL, a subsidiary which KBank effectively holds 38.25% shares. This transaction does not require shareholder approval at the Shareholders' Meeting as it is a normal business transaction conducted with general trading conditions. ■ KBank deems this transaction as a very important transaction. As such, KBank wants to solicit shareholder participation in the decision so as to enhance transparency and be consistent with good corporate governance practices. ■KBank's Board of Directors resolved to submit the transaction for shareholder approval at the Extraordinary General Meeting of Shareholders on August 26, 2021, and the Extraordinary General Meeting approved the transaction. ■KBank views the continuity of distributing the life insurance products of MTL according to this new Bancassurance Agreement, will: Provide maximum benefits to KBank's overall insurance business value; Provide more favorable conditions and greater benefits to KBank; Continue the cooperation through a 10-years relationship with MTL, a leading life insurance company; Cause no disruption in business operations with MTL and services provided to KBank customers. ■KBank appointed three external independent advisors to provide opinions on the transaction. ■ Key transaction summary of this exclusivity bancassurance agreement : KBank will receive payment of Bt 12.7 bn and annual performance bonus, in return for distributing MTL's life insurance products, health and critical illness insurance products. Amortization of BA agreement value (Bt 12.7 bn) and performance bonus will be recorded in non-interest income in Bank only financial statement and in non-controlling interest in consolidated financial statement. บริการทุกระดับประทับใจ 56#29K KASIKORNTHAI Total Economic Value ■ KBank still effectively owns 38.25% of MTL's equity. Bilateral negotiation is a balancing act. Sales Channel Value Company Value* ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Impacts on Income Statement Bancassurance Agreement has impacts on following components in the income statement: KBank (Bank only): Non-interest income: + Bt 1,270 mn (average payment per year) + Performance Bonus MTL: Non-interest expense: + Annual Payment Commission Non-contingent Performance Bonus KBank's Share in MTL Equity (38.25%) Consolidated KBank: Non-controlling interest: 61.75% x annual payment after tax Consolidated net profit: 61.75% x annual payment after tax Bancassurance Exclusivity Value *Non-listed company Potential destruction to our economic value caused by MTL having to find other sales channel replacement is high. Better value accretion can be achieved through this business alignment. ■ We considered the overall economic value to KBank from both sales channel value and company value i.e. if sales channel value increases, company value will decline. If NPE improves from this arrangement, KBank's consolidated income and MTL's NPE will rise. Note: • Annual payment = Bt1,270 mn (average payment per year) + performance bonus NPE = Net Premium Earned An average payment per year of exclusivity fee has been recognized on a monthly basis, starting from January 1, 2022 onwards. บริการทุกระดับประทับใจ 57 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Risk and Credit Management บริการทุกระดับประทับใจ 58#30K KASIKORNTHAI KBank Risk Management Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■The Bank's organization is structured to facilitate all aspects of risk management; each business unit's responsibilities and segregation of duties are clearly identified in accordance with good internal-control practices ■ Approve risk appetite and all risk management policies and guidelines ■ Oversee effectiveness of consolidated risk management framework Board of Directors Risk Oversight Committee Audit Committee Management Committee Credit Risk Management Sub-committee Credit Process Management Sub-committee Asset and Liabilities Management Sub-committee Market Risk Management Sub-committee Capital Management Sub-committee Operational Risk Sub-committee Business Continuity Management Sub-committee Information Technology Strategy Sub-committee Digital Oriented Risk, Data and Cyber Security - and IT Risk Management Sub-committee Sustainable Development Sub-committee Digital Asset Sub-committee ■ Ensure effectiveness of overall risk management of the financial conglomerate ■ Establish risk management policies and risk appetites. Set risk limits for significant aspects of the various risks ■ Formulate strategy for the organization and resources to be used for the risk management operation, in line with the risk management policy. This strategy must enable the effective analysis, assessment, evaluation, and monitoring of the risk management system Business Units CBS/DNW/PBG/ CMB/IBB/WBG/CSI/ DAS/ICB/MMT/TWG/ Risk Management and Control Function Internal Audit ADD ERM CPD/TS/CSF/KBTG ■Business units are responsible for continuous and active management of all relevant risk exposure, to be in line with its returns and risk appetite ■Risk management is responsible for providing independent and objective views on specific risk-bearing activities to safeguard the integrity of the entire risk process. Control units are set to ensure that risk levels are in line with our risk appetite ■Internal Audit is independent and responsible for evaluation to add value and improve the effectiveness of risk management, control, and governance processes of the Bank and its subsidiaries CBS Corporate Business Division, DNW = Distribution Network Division, PBG = Private Banking Group, CMB = Capital Markets Business Division, IBB = Investment Banking Business Division, WBG World Business Group, CSI = Corporate Strategy and Innovation Division, DAS = Data and Analytics Division, ICB = Integrated Channels and Business Solutions Division, MMT = Marketing Management Division, TWG = Transaction and Wealth Banking Division, CPD = Credit Products Division, TS = Central Treasury Department, CSF = Customer and Enterprise Service Fulfillment Division, KTBG = KASIKORN BUSINESS - TECHNOLOGY GROUP, ERM = Enterprise Risk Management Division, ADD = Audit Division บริการทุกระดับประทับใจ 59 K KASIKORNTHAI KBank Credit Risk Management Process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The Bank continues to enhance credit risk management processes to promote risk strategies with justified risk-return tradeoff within the rapidly changing economic environment Portfolio Management ■ Determine portfolio-by-design taking into account risk-adjusted return trade-off ■Manage portfolio according to the Bank's risk appetite and concentration risk management (Country, Industry, Large Customer Group) ■ Perform stress testing to identify impacts to portfolio and proactively prepare appropriate management actions Origination Monitoring Collection & Recovery ■ Enhance decision making/support tools for more efficient return and risk evaluation ■ Setup specific prescreening criteria for potential industries ■ Enhance customer income validation process ■ Monitor customer behavior and detect early warning signs ■Leverage National Credit Bureau information for effective credit monitoring ■ Ensure credit condition compliance (e.g. insurance, capital injection, project progress) ■Take prompt action to prevent credit deterioration บริการทุกระดับประทับใจ ■ Efficient collection and follow-up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss 60 60#31Post Approval Approval Process K KASIKORNTHAI KBank Credit Approval Process Corporate Credit Underwriting Dept. Policy Lending ⚫ Sufficiency of cash flow • Growth trends and ability to compete • Management experience and depth SME (Medium) Leverage, Liquidity, Asset Quality, ESG factors ⚫ Credit Risk Mitigation • Facilities Structure SME (Small & Micro) Retails (Housing) SME Credit and Housing Loan Approval Dept. Formula Lending Customer Integrated Credit Scorecard • Application Score ⚫ FICO Score ⚫ Bureau information/Credit history ⚫ Debt service capacity • LTV ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Retail (Unsecured Loans) Payment Service Fulfillment Department Formula Lending • Customer Integrated Credit Scorecard • Application Score • Transactional Score • FICO Score • Bureau information/Credit history ⚫ Debt service capacity ⚫ Legal document • Limit set up Credit Service Fulfillment Dept. Payment Service Fulfillment Department ⚫ Legal document ⚫ Limit set up Bank-wide Risk Asset Review Asset Quality Management Operation Dept. • Customer Review by Relationship Manager (RM) ⚫ Credit Monitoring and Asset Management Unit to facilitate RM in customer monitoring . Credit Clinic • Automated collection system • Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter generation, phone-based collection Note: FICO Fair Isaac Corporation บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank Credit Risk Management Process: Collection and Recovery Collection & Recovery Flow ■ Efficient collection and follow-up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss Debt Resolutions Performing Loans Process Non-Performing Loans Move to Better Status Move to Worsen Status Litigation Process Performing Loans* Debt Collections Rescheduled Loans* (Financial Aid Program) Repayment of Rescheduled/ NPL** Restructured Term Loans with DPD > 1 day go to debt collection stage Restructured Loans (Not classified as NPL) Relapsed NPL Write-off ↓ NPL Sales Note: * Rescheduled Loans are loans (no passed due date) that have changed payment conditions and not incurred losses. (Loans in the Financial Aid Program is a part of Rescheduled Loans) * Financial Aid Program helps customers during the bad macro business condition such as the big flood in 2011, the political unrest in 2014 and COVID-19 in 2020. * Performing loans = Pass Loans (loans passing the due date by less than 1 month) and Special Mention Loans (loans passing the due date by more than 1 month but not over 3 months) ** NPLs = Non-performing Loans = loans passing the due date by more than 3 months = Sub-standard Loans, Doubtful Loans, Doubtful of Loss Loans, and restructured loans classified as NPL บริการทุกระดับประทับใจ 62 61#32K KASIKORNTHAI TFRS9: Asset Class and Expected Credit Loss Stage 1: Perform New or good assets Probability of Default (PD) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Asset Class (Defined by Incremental Risks: New definition of SICR and Modified Loans) Stage 2: Underperforming Assets with "> 30 Days Past Due" or higher credit risk than origination capturing via risk information eg. Credit scoring, PD change etc. Expected Credit Loss (ECL): PD x LGD x EAD Incorporate forward looking over lifetime Macro-factor is captured through PD point-in-time Stage 3: Non-performing Defaulted assets Stage 1: Performing Define relevant economic 1 Year factors & scenario Incorporate through PD point-in-time Derive term structure PD & ECL by scenario Weight with probability for final ECL ■ Term structure PD is derived over behavioral life Lifetime Stage 2: Under-performing Lifetime Stage 3: Non-performing Loss Given Default (LGD) Exposure at Default (EAD) ■ Multi-scenario is weighted to come up with final Expected Credit Loss (ECL) Incorporate recovery from both collateral and cash payment Combination of drawn and undrawn as credit exposure ■ It is an accounting complication to treat drawn ECL as assets contra and undrawn ECL as liabilities, while to risk, both are "credit exposure" ■ Drawn is "outstanding amount + EIR adjustment”; Undrawn is “outstanding amount x conversion factor" "Drawn" Principal + Accrued Interest +EIR adjustment "Undrawn" Notional x CCF 1) Contingent products: LI, LC 2) Committed unused facilities CCF could be regulatory CCF or behavioral CCF Note: Significant Increase in Credit Risk (SICR) reflects higher risk than origination, but not yet bad quality; modified loans are loans with changing terms and conditions, either good or bad; thus, it can be at any stage Drawn Loan amount that customer has already drawn down, which is booked under loans to customers or part of "Interbank and money market items" Undrawn = Credit facilities that are not utilized yet or credit facilities that are utilized but are booked as contingent liabilities, excluding derivatives EIR = Effective Interest Rate; LI = Letter of Indemnity; LC = Letter of Credit; CCF = Conversion Credit Factor บริการทุกระดับประทับใจ K KASIKORNTHAI Litigation Process Litigation process in Thailand takes about 2-3 years Litigation Process Under Negotiation ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Period Negotiate, await approval, document preparation & lawyer process Approximately 2 months Pre-court (Notice) Issue notice & court filing Approximately 2 months In Court Trial / wait for court ruling Approximately 9-18 months Execution Collect payment ruled by court or foreclose Approximately 3 months Public Auction Liquidation process บริการทุกระดับประทับใจ Approximately 6-9 months 63 64 0#33K KASIKORNTHAI Credit Bureau Summary National Credit Bureau (NCB)* Two Types of Credit Reports Offered by NCB: ➤ Consumer credit report for individuals ➤ Commercial credit report for businesses Credit report (monthly reported by members) ➤ Customer information (Name, address, identification number, birth date, occupation, etc.) ➤ Credit information (History of application, approval history, loan payment history, etc.) Data Record of Credit Report Individuals: Credit report remains on file for 3 years ➤ Businesses: Credit report remains on file for 3 years Members: Financial institutions including commercial banks, specialized financial institutions (SFIs), non-bank financial institutions, finance companies, securities companies, insurance companies, etc. Note: ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK KBank Practice KBank's customers applying for loans Optional to Sign agreement to allow the Bank (Large companies normally have reliable financial statements) Corporate Business to get credit report from NCB Required to SME Business Multi- Corporate Business Large Corporate Business Medium Business Good credit Poor credit KBank's Policy Lending Reject application Required to Retail Business Small & Micro Business 4 Customer Segments in Retail (HN, AF, MI and MA) Good credit Poor credit KBank's Credit Scoring Reject application * The concept of a credit bureau started in 1961 and central credit registration started in 1964. The Central Information Service was established in 1999 and its name was changed to Central Credit Information Service in 2000 and to the National Credit Bureau in 2005 บริการทุกระดับประทับใจ 65 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Proactive risk management to counter economic slowdown and high household debt ■Continue to deploy proactive credit portfolio / risk management / asset quality management to mitigate an adverse impact from prolonged economic recovery and high household debt Corporate Business SME Business Retail Business ■ Focus on high potential industries less impacted by economic slowdown ■ Closely monitor customers in high risk industries and supply chains ➤ Actively monitor early warning signs ➤ Promptly respond to adverse events ■Selective on quality of customers ■ Proactive risk management by visiting customers; raise productivity of sales teams and relationship managers ■Efficient collection process ■Selective on high-value customers regarding prevailing BOT regulations and the Bank's policy ■ Proactive and efficient collection process based on the Bank's models ■ Analyze behavior regularly to identify weak spots บริการทุกระดับประทับใจ 66 60#34K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK J JK Asset Management Co., Ltd. (JK AMC) KBank Company Profile . Benefit to KBank • • • mt network services In June 2022, Thailand's first joint venture co-owned by a commercial bank (KBank via KVision) and an asset management company (JMT via JAM), with an initial paid up capital of Bt10bn (50% by KVision 50% by JAM) Operating an asset management business, per the relevant laws and criteria, through the purchase or acknowledgement of transfers of impaired assets, as well as foreclosed properties of KBank and KBanks' affiliates, including other financial institutions and companies, both secured and unsecured loans Allowing KBank to manage NPLs with enhanced efficiency, while offering borrowers more options for settling their debt that are suited to their debt servicing ability Balance Sheet: Income Statement: Cash and room for new good loans NPL, NPA and credit cost with insignificant impact on coverage ratio Net profit from higher net interest income from new loans and lower credit cost #1 in the AMC business within 3 years 2Q22 3Q22 2022 2025 JK AMC Business Plan • (Announced June 2022) Initial NPL transferred • Starts Operation • Total transfer Bt50bn* • Target AUM Bt100bn (KBank and others) KBank NPL Sales • Bt72bn* (accumulative amount) Note: *Legal claim amount, not book value of transferring amount; total KBank's NPL transferred mostly to JK AMC บริการทุกระดับประทับใจ K KASIKORNTHAI KBank: Financial Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Note: The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards. Some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9) บริการทุกระดับประทับใจ 68 80 67#35K KASIKORNTHAI 2022 Performance Highlights ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK expected credit loss, while EBPT improved from higher income, as a result of the Bank's strategic and interest rate direction, and efficient expense management. Y2022 loans grew 3.03% YoY, mainly from corporate business and small ticket lending (SME and Retail) while home loan decreased. However, loans decreased in 2H22 from NPL outflow management. Consolidated Net Profit (Bt bn) 2021 1Q22 2Q22 3Q22 4Q22 2022 Y2022 net profit decreased 6.00% YoY, due to higher 38.05 11.21 10.79 10.57 3.19 35.77 Profitability - NIM - ROE* - ROA - YTD Loan growth 3.21% 3.19% 3.21% 3.33% 3.62% 3.33% 8.44% 9.30% 9.13% 8.49% 2.63% 7.38% 0.98% 1.09% 1.04% 1.00% 0.30% 0.86% 7.88% 1.51% 2.79% 1.75% 3.03% 3.03% - YoY Loan growth 7.88% 6.77% 4.45% 0.83% 3.03% 3.03% - YoY Net fee income growth 7.01% (6.36%) (5.00%) (5.09%) (11.09%) - YoY Non-interest income growth (4.17%) (25.49%) (14.72%) (6.04%) 13.04% (6.89%) (8.42%) Cost control - Cost to income 43.49% 42.82% 43.53% 43.73% 42.60% Asset quality - NPL ratio - Credit Cost 3.76% 1.73% 3.78% 3.80% 3.07% 1.53% 1.59% 1.61% 3.19% 3.68% - Coverage ratio Loans to Deposits Tier 1 Ratio CAR 159.08% 158.33% 144.61% 148.74% 154.26% 3.19% 2.11% 154.26% 93.20% 93.31% 93.18% 92.65% 90.77% 16.49% 16.35% 16.39% 17.21% 16.84% 18.77% 18.34% 18.37% 19.19% 18.81% 90.77% 16.84% 18.81% Note: Under Bank of Thailand regulations, net profit in the first half of the year is counted as capital after approval by the Board of Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General Meeting of Shareholders. However, when a net loss occurs, the capital must be reduced immediately Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from January 1, 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisting of KBank, K Companies, and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd., and other subsidiaries within the permitted scope of the BOT's definition to be a financial conglomerate NIM was 3.33% in Y2022, increased YoY, due to higher yield on loans as small ticket lending (SME and Retail) increased, and higher lending rates. 43.15% Y2022 net fee income decreased 6.89% YoY, mainly due to a decrease in fees from fund management and brokerage business in line with market conditions and drop in transaction service fee rate, while fees from card business increased according to customer spending. Y2022 cost to income ratio was 43.15% decreased YoY, from net total income increased, while higher operating expense (mainly from marketing and IT expense). Focus on cost management and productivity improvement, with new investments for future growth. * ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments ■NPL ratio in Y2022 was at 3.19%, with a coverage ratio of 154.26%, from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. Asset quality is manageable with closely monitored and constantly reviewed. ■Y2022 capital base remained sufficient to support business growth. บริการทุกระดับประทับใจ K KASIKORNTHAI Consolidated Financial Statements ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Statements of Comprehensive Income (Bt mn) 2020 Interest income Interest expenses Interest income - net Fee and service income 127,592 2021 135,415 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 2022 34,828 35,010 35,924 36,367 37,620 41,421 151,333 18,570 16,024 4,087 4,210 4,174 4,355 4,532 5,274 18,334 109,022 119,390 30,741 30,800 31,751 32,012 33,088 36,148 132,998 45,699 48,628 11,949 12,224 12,367 11,683 12,099 12,197 48,345 Fee and service expenses 12,695 13,312 3,389 3,474 3,535 3,536 3,974 4,418 15,463 Fee and service income - net 33,004 35,316 8,560 8,749 8,832 8,147 8,125 7,779 32,882 Gain (Loss) on financial instrument measured at FVTPL 8,119 5,539 (184) 2,709 686 (452) 144 4,674 5,053 Share of profit (loss) from investments using equity method Gain (Loss) on investments (193) (694) (166) (315) (50) 151 (40) 54 115 1,308 817 286 85 (17) (135) (17) 38 -130 Net premium earned 72,129 69,360 17,255 18,156 15,718 14,393 17,853 18,091 Other operating income 1,682 1,289 214 401 427 406 614 Total operating income 227,456 234,328 57,655 61,254 58,218 55,745 60,606 675 67,973 66,056 2,123 242,542 Underwriting expenses 72,565 70,979 17,712 18,731 17,605 14,234 18,871 18,574 69,285 Total operating income - net 154,891 163,349 39,943 42,523 40,613 41,511 41,735 49,399 173,258 Total other operating expenses 69,997 71,044 16,965 20,478 17,390 18,070 18,251 21,041.64 74,753 Earning Before Provision and Tax 84,895 92,305 22,978 22,045 23,223 23,441 Expected Credit Loss 43,548 40,332 11,296 9,580 9,336 9,852 23,484 9,948 28,357.57 98,505 22,784.00 51,919 Impairment loss of loans and debt securities - - Operating profit before income tax expenses 41,347 51,973 11,682 12,466 13,887 13,589 13,536 5,574 46,585 Income tax expenses 7,656 9,729 2,026 2,120 2,700 2,454 2,546 933 8,633 Net profit attributable: Equity holders of the Bank 29,487 38,053 8,631 9,901 11,211 10,794 10,574 3,191 35,769 Non-controlling interest 4,203 4,192 1,025 445 (24) 341 416 1,450 2,183 Statements of Financial Position (Bt mn) Loans to customers Total Assets Deposits Total Liabilities Total Equity attributable to equity holders of the Bank 2020 2021 3Q21 4Q21 1Q22 2Q22 2,244,821 2,421,813 2,444,018 2,421,813 2,458,263 2,489,420 3,658,798 4,103,399 4,029,831 4,103,399 4,133,248 4,187,779 2,344,998 2,598,630 2,531,290 2,598,630 2,634,409 2,671,536 3,167,512 3,566,724 3,507,795 3,566,724 3,585,865 3,642,814 439,670 476,714 464,367 476,714 488,192 488,963 3Q22 4Q22 2,464,277 2,495,077 4,229,795 4,246,369 2,659,896 3,672,187 500,248 2022 2,495,077 4,246,369 2,748,685 2,748,685 3,679,289 3,679,289 503,270 503,270 Note: KBank acquired additional ordinary shares in MTGH, to hold a 51% stake valued at Bt7,529mn; the MTGH Acquisition was completed on November 30, 2009. As the MTGH acquisition was completed on November 30, 2009, the Bank's consolidated financial statements from 2010 include the performance of companies in the MTGH Group for the whole year. บริการทุกระดับประทับใจ 69 70#36K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Earnings Before Provision and Tax (EBPT) and Net Profit December 2022 (Consolidated) EBPT Net Profit (Bt bn) (Bt bn) 98.50 92.31 60 100 87.14 87.76 84.89 38.46 38.73 38.05 80 35.77 40 29.49 60 40 20 20 0 2018 2019 2020 2021 2022 0 2018 2019 2020 2021 2022 Y2022 net profit decreased 6.00% YoY, due to higher expected credit loss as a prudent consideration of the uncertain economic outlook and business strategy, while EBPT improved from higher income, as a result of the Bank's strategic and interest rate direction, and efficient expense management. EBPT (Bt bn) 2018 87.14 EBPT Growth (% YoY) 2019 87.76 (3.70%) 0.72% 2020 2021 2022 84.89 92.31 (3.27%) 8.73% 98.50 6.72% 1Q22 23.22 (1.16%) 2Q22 3Q22 4Q22 23.44 23.48 28.36 (1.45%) 2.20% 28.63% Net Profit (Bt bn) Net Profit Growth (% YoY) 38.46 12.00% 38.73 0.70% 29.49 38.05 (23.86%) 29.05% 35.77 -6.00% 11.21 5.50% 10.79 21.36% 10.57 22.52% 3.19 -67.77% บริการทุกระดับประทับใจ K KASIKORNTHAI Interest Income - net December 2022 (Consolidated) Interest Income and Interest Expenses ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Income - net (Bt bn) (Bt bn) 133.00 140.00 123.92 130.18 135.41 127.59 120.00 140.00 120.00 100.00 119.39 109.02 98.54 102.69 100.00 80.00 80.00 60.00 60.00 40.00 40.00 25.38 27.49 18.57 16.02 18.33 20.00 20.00 0.00 0.00 2018 2019 2020 2021 2022 2018 2019 ■Interest income 2020 2021 Interest expenses 2022 71 Y2022 net interest income increased 11.40% YoY, mainly due to an increase in interest income from loans to customers according to growth of new loan granted to SME and Retail business customers with focus more on offering of loan products via digital channels along with using data for lending analysis, which in line with the Bank's strategic direction. Interest Income (Bt bn) Interest Expenses (Bt bn) Interest Income - net (Bt bn) Interest Income - net (% Growth YoY) 2018 2019 2020 123.92 130.18 127.59 25.38 27.49 18.57 2021 135.41 16.02 2022 1Q22 2Q22 3Q22 4Q22 151.33 35.92 36.37 37.62 41.42 18.33 4.17 4.36 4.53 5.27 98.54 102.69 109.02 4.65% 4.21% 6.17% 9.51% 119.39 133.00 31.75 32.01 33.09 36.15 11% 12.86% 7.72% 7.64% 17.36% Note: Contributions from MTL's insurance business to KBank include non-interest income (e.g. net-premium earned-net), and interest income (e.g. interest income from investment portfolio); however, all income sources from MTL will be netted with non-controlling interests. บริการทุกระดับประทับใจ 72 22#37K KASIKORNTHAI Non-interest Income and Structure December 2022 (Consolidated) Non-interest Income to Average Assets Non-interest Income Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Premium Earned and Underwriting Expenses (%) (Bt bn) 4 120 91.43 (Bt bn) 100 87.90 80.49 80.65 3 56.95 65 (-9%) 57.80 (+2%) 80 72.13 72.56 69.36 70.9866.06 69.28 60 1.88 1.79 60 2 1.32 55 3% 3% 45.87 40 43.96 1.13 40.26 20 0.96 50 (-21%) (-4%) 0 1 45 4% 3% (-8% YoY) 2018 5% 40 2019 Net premium earned 2020 2021 2022 Underwriting expenses 0 64% 35 67% 2018 2019 2020 2021 2022 30 Net Premium Earned - net 72% 80% Non-interest Income Ratio 25 82% 20 (Bt bn) 14 5% 15 6% 0.1% (%) 100.1% 4% 15% 5% 5% 10 3% 8% 9% 0.3% 60 5 16% 14% % 1 18% 50 0 36.62 36.02 40 -5 2018 -0.3% -0.4% -1% 2019 13% 13% 6 3.54 -2% -0.3% -0.16 -0.44 -4% 2 -1.62 -3.23 2020 2021 2022 -8% 29.61 26.91 30 123.24 -2 20 10 0 2018 2019 2020 2021 2022 Other operating income Net earned premium - net Share of profit from investments on equity method Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) Gain on investments ■Fee and Service Income - net 2020 -6 Dividend Income 2018 2019 2022 Contributions from MTL's insurance business to KBank include non-interest income (e.g. net-premium earned- net), and interest income (e.g. interest income from investment portfolio); however, all income sources from MTL will be netted with non-controlling interests. 2021 2018 56.95 2019 57.80 2020 45.87 (9.17%) 1.51% 36.62 36.02 29.61 Non-interest Income (Bt bn) Non-interest Income Growth (%YoY) Non-interest Income Ratio (%) Note: Non-interest Income Ratio = Non-interest Income/Total Operating Income - net - Net Premium Earned - net = Net Premium Earned less Underwriting Expense -The Bank and its subsidiaries have adopted TFRIC 13: Customer Loyalty Programmes since January 1, 2014 onwards 2021 43.96 (20.65%) (4.17%) 2022 40.26 (8.42%) 1Q22 8.86 2Q22 9.50 3Q22 8.65 4Q22 13.25 (25.49%) (14.72%) (6.04%) 13.04% 26.91 23.24 21.82 22.88 20.72 26.83 K KASIKORNTHAI Net Fee Income December 2022 (Consolidated) Net Fee Income บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Net Fee Income to Net Total Operating Income (%) (Bt bn) 30 38.12 40 36.74 35.32 24.52 33.00 1 32.88 22.89 21.31 21.62 18.98 30 20 20 110 10 0 2018 2019 2020 2021 2022 0 2018 2019 2020 2021 2022 ■Y2022 net fee income decreased 6.89% YoY, mainly due to a decrease in fees from fund management and brokerage business in line with market conditions and drop in transaction service fee rate, while fees from card business increased according to customer spending. Net fee income to net total operating income was 18.98% in Y2022. 2018 2019 2020 2021 2022 1Q22 2022 3Q22 4Q22 Fee Income (Bt bn) Fee Income-net (Bt bn) Fee Income Growth (% YoY) Net Fee Income Growth (%YoY) Net Fee Income to Net Operating Income Ratio (%) Note: 51.19 38.12 45.70 33.00 24.52 22.89 50.58 36.74 (1.10%) (1.19%) (9.65%) 6.41% (0.58%) (7.72%) (3.61%) (10.17%) 7.01% (6.89%) 21.31 21.62 48.63 35.32 48.35 12.37 32.88 8.83 11.68 8.15 12.10 8.13 12.20 7.78 18.98 (1.97%) (1.32%) 1.24% (0.22%) (6.36%) (5.00%) (5.09%) (11.09%) 21.75 19.63 19.47 15.75 - On the consolidated basis, Bancassurance fees are not included in net fee income since November 30, 2009, due to the elimination of inter-company transactions (the accounting treatment from the Muang Thai Group Holding consolidation) บริการทุกระดับประทับใจ 73 74#38K KASIKORNTHAI Net Fee Income Structure December 2022 (Consolidated) Net Fee Income by Product ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Others 13% Credit Card Brokerage business Business 16% 6% Fund Management Business 22% Trade finance 7% Transaction services 15% Commercial credit 17% Cash management 4% Loan Related and Non-loan Related Fees - net ■Credit Card Business (mainly from credit card, merchant fees) ■Transaction services (such as ATM & debit cards, bill payments, money transfers, etc.) ■Commercial credit (mainly from commercial credit related fees) Cash management (such as fees from payroll accounts) ■Trade finance ■Fund Management Business (mainly from mutual fund and securities service fees) Brokerage business ■Others (such as capital market business, etc.) Non-loan related 84% Loan related 16% Note: - On the consolidated basis, Bancassurance fees are not included, due to the elimination of inter-company transactions (the accounting treatment from the Muang Thai Group Holding consolidation) - On the consolidated basis, Net Premium Earned - net (Net Premium Earned Less Underwriting Expenses) from Muang Thai Life Assurance (MTL) is reported as a part of non-Interest Income; KBank has a 38.25% economic interest in MTL บริการทุกระดับประทับใจ K KASIKORNTHAI Other Operating Expenses December 2022 (Consolidated) Other Operating Expenses Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) 74.75 72.73 68.35 70.00 71.04 70 29% 30% Other expenses 28% 60 28% 29% Taxes and duties 50 7% 8% I 8% 7% 7% ■Premises and equipment expenses 40 18% 16% 19% 17% 0.2% 15% 02% ■Directors' remuneration 0.2% 2% 0.2% 30 ■Employee's expenses 20 46% 46% 46% 49% 46% 10 0 2018 2019 2020 2021 2022 Y2022 other operating expenses increased 5.22% YoY, mainly due to an increase in market expenses collaborated with business partners, in line with revenue increased according to business volume and IT related expenses in order to support customers' needs. Continued to focus on cost and productivity improvement and new investments for future growth. Other Operating Expenses (Bt bn) 2018 68.35 2019 72.73 2020 70.00 2021 71.04 2022 74.75 1Q22 2Q22 3Q22 4Q22 17.39 18.07 18.25 21.04 Other Operating Expenses Growth (%YoY) 2.98% 6.41% (3.76%) 1.50% 5.22% 5.20% 5.86% 7.58% 2.75% บริการทุกระดับประทับใจ 76 60 75#39K KASIKORNTHAI Loan Structure and Loan Growth December 2022 (Consolidated, TFRS 8: Operating Segments*) Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio (Bt bn) 2,800 Consolidated Amount (Bt bn) Y2022 Y2022 Y2023 Dec 21 2,421 2,495 Dec 22 Loan Growth Yield Range Loan Growth Target 2,245 2,400 (%) (%) (%) 1,914 2,002 2,000 34% 36% Corporate Loans 816 880 7.8% 2-4% 4-6% Corporate 36% SME Loans 793 780 (1.6%) 5-7% 1-2% 1,600 36% 35% 1,200 33% 31% 800 35% 34% 33% ■SME Retail Retail Loans 711 703 (1.2%) 5-7% 2-4% Other Loans 101 132 30.4% Others 400 25% 28% 28% 29% 28% Total Loans¹) 2,422 2,495 3.0% 5.0% 5-7% 0 4% 1% 4% 3% 4% 5% 2018 2019 2020 2021 2022 Note: From time to time, the Bank has adjusted loan definitions based on loan portfolio management; thus, the latest loan base is not comparable with previous reports. 1) Y2022 other loans was included loans through the World Business Group of Bt82bn, increased 73.1% YoY Loan Growth (% YoY) Loan by Retail Products (All Segments)** (Amount in Bt bn) Dec 21 Dec 22 (%) Y2021 Loan Y2022 % Portion Loan 15 10 505 12.13 Growth Growth to Total Loan 7.88 (%) (%) 6.17 4.59 3.03 Housing Loans 483 443 7.6 (8.3) 17.7 Credit Cards 102 109 11.9 7.4 4.4 0 Consumer Loans 66 73 102.5 11.2 2.9 2018 2019 2020 2021 2022 KLeasing 121 137 5.4 13.4 5.5 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 Loans (Bt bn) 1,914 2,002 2,245 2,422 2,495 2,458 2,489 2,464 2,495 Loan Growth (% YoY) 6.17% 4.59% 12.13% 7.88% 3.03% 6.77% 4.45% 0.83% 3.03% Loan Growth (% YTD) 6.17% 4.59% 12.13% 7.88% 3.03% 1.51% 2.79% 1.75% 3.03% Note: * Since 1Q13, as per the Bank of Thailand's requirement, the Bank has complied with TFRS 8 (Operating Segments) to present operating results for each key segment in financial reports. ** From December 2021 onwards, KBank's housing loans include housing loans and all retail secured loans. Loan Definition Corporate Loans: Loans Loans of KBank and KBank's Subsidiaries in Corporate Segments (Annual sales turnover > Bt400mn); SME Loans: Loans in SME Segments (Annual sales turnover ≤ Bt400mn); Retail Loans: Loans in Retail Segments; Other Loans: Composed of loans through the World Business Group, the insurance business (MTL), and other loan types not directly attributable to the main business groups. Since Y2020 onwards, loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) were reclassified to their customer segments. - Housing Loans: KBank's housing loans and all retail secured loans; Credit Cards: KBank's credit card loans to all eight customer segments; Consumer Loans: KBank's retail unsecured loans; KLeasing: KLeasing's loans to all eight customer segments บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio Breakdown by Business, Residency of Borrowers, and Maturity of Interest Repricing December 2022 (Consolidated) (Bt bn) 3,000 Loan Portfolio by Business* By Residency of Borrowers (December 2022)* Foreign 5.14% 2,500 2,000 1,500 1,327 15.7% 14.5% 12.5% 14.6% 2,002 14.6% 16.3% 1,439 1,527 1,610 1,698 1,803 1,914 14.9% 16.2% 2,245 16.8% 2,422 17.7% 18.3% 2,495 Others ■ Housing loans 14.2% 14.2% 1,000 16.2% 14.9% 46.3% 41.7% 6.9% 11.6% 14.2% 14.7% 12.8% 14.8% 13.5% 12.5% 13.2% 14.7% 13.7% 13.5% 12.8% 8.9% 9.0% 8.6% 8.5% 6.6% 6.9% 14.3% 14.2% 17.1% 15.2% 17.2% ■Infrastructure and services 500- 8.6% 8.9% 48.1% 49.1% 48.1% 47.3% 46.2% 44.0% 41.7% 40.5% 42.1% ■Property development and construction Manufacturing and commerce Agriculture and mining 8.6% 14.5% 8.4% 0 2.4% 2.3% 2.0% 1.9% 2.1% 1.9% 1.8% 1.7% 1.6% 1.5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Domestic 94.86% 77 By Maturity of Interest Repricing (December 2022)* Definition of Loans 1) by industry Gross loans Loans to customers less deferred revenue 2) by currency = Loans to customers and AIR - net 3) by maturity of interest repricing = Loans to customers less deferred revenue Loans by Bangkok and Metropolitan vs. Upcountry Loan by Bangkok and Metropolitan vs. Upcountry Proportion of KBank's Outstanding Loans 2014 2015 2016 2017 2018 2019 2020 2021 2022 Bangkok and Metropolitan Upcountry * 64% 64% 63% 64% 62% 59% 58% 62% 62% 36% 36% 36% 37% 38% 41% 42% 38% 38% > 6 months 19.98% Others 0.65% <=6 months 9.36% Note: The information on loans breakdown by industry, residency of borrowers, and maturity of interest repricing are disclosed on half year basis Immediate repricing 70.01% บริการทุกระดับประทับใจ 8 78#40K KASIKORNTHAI Asset Quality December 2022 (Consolidated) (%) NPL Ratio ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Coverage Ratio Classified Loans* (%) (Bt bn) Stage 1 Performing 2020 2021 2022 1,951 2,130 2,230 200 5 160.60 3.93 148.60 149.19 159.08 154.26 3.65 3.76 4 3.34 3.19 150 3 100 Stage 2 Under-performing Stage 3 Non-performing Total 201 202 188 103 106 93 2,256 2,438 2,511 2 50 1 0 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 NPL ratio in Y2022 was 3.19%, with a coverage ratio of 154.26%. NPL ratio dropped YoY from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. Asset quality is manageable with closely monitored and constantly reviewed. 2018 2019 2020 2021 2022 1Q22 2Q22 3Q22 4Q22 NPL Ratio (%) Coverage Ratio (%) SML to Total Loans Ratio (%)* Loans with significant increase in credit risk (%) 3.34 3.65 3.93 3.76 3.19 3.78 160.60 148.60 149.19 159.08 154.26 158.33 3.80 144.61 3.07 3.19 148.74 154.26 1.90 2.80 7.80 7.27 6.47 7.22 6.54 6.52 6.47 Note: * Loans to customers and accrued interest receivables: Under TFRS 9, the classified loans are defined by 3 stages based on incremental risks, which cannot directly compare with the previous number these were defined by days past due. บริการทุกระดับประทับใจ K KASIKORNTHAI Expected Credit Loss and Credit Cost December 2022 (Consolidated) Impairment Loss of Loans and Debt Securities Expected Credit Loss ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Cost (Bt bn) 60 51.92 (bps) 50 43.55 350 40.33 300 40 32.53 34.01 250 205 211 175 174 173 30 200 20 150 100 10 0 50 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 79 ■Y2022 credit cost increased YoY to 211 bps, due to prudent consideration of the uncertain economic outlook and business strategy. ■An increase also supported a global economic slowdown with the potential to enter a recession in the future and Thailand's economic recovery will likely remain on an uneven path. Moreover, it also strengthens and increases flexibility in asset quality management to ensure readiness to support groups of customers according to the Bank's strategic direction, so that customers can operate their businesses with potential align with the upcoming business opportunities. Expected Credit Loss (Bt bn) 2018 32.53 2019 34.01 2020 43.55 2021 2022 40.33 51.92 1Q22 2Q22 3Q22 4Q22 9.34 9.85 9.95 22.78 (Impairment Loss of Loans and Debt Securities) Credit Cost (bps) 175 174 205 173 211 153 159 161 368 บริการทุกระดับประทับใจ 80#41K KASIKORNTHAI Bad Assets Resolution December 2022 (Consolidated) (Bt bn) 60 50- 40 30 20 Write-offs ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK NPL Portfolio Sales (Bt bn) 59.0 80 72.0 70 60 50 40 26.4 27.4 30 15.4 21.5 19.9 20 11.4 6.4 8.4 7.1 6.8 10.7 10 2008-2015: 2021: no bulk NPL sales no NPL sale 0 2007 2008 2015 2016 2017 2018 2019 2020 2021 2022 10.3 10.1 9.6 7.3 10 5.5 4.3 3.9 5.0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Outstanding Foreclosed Properties NPL sales = legal claim amount, not book value of transferring amount NPL sales mostly to AMCS except 2007: Standard Bank Asia Limited and Morgan Stanley Emerging Markets Inc., 2016: JMT Network Services PCL, and 2022: Most NPL sales to JK Asset Management Sales of Foreclosed Properties (KBank only) (Bt bn) (Bt bn) 48.9 46.3 10.5 16.7 15.9 15.1 III 31.5 28.4 24.9 12.5 12.1 13.4 16.1 17.4 19.6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M22 6.4 5.4 5.6 5.0 4.8 4.1 4.0 4.3 2.8 3.0 2.9 3.0 2.4 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M22 Note: On September 11, 2013, the Bank was formally notified of its final loss sharing portion under the asset transfer agreement with TAMC established in October 2001. This amounted to Bt206mn. An amount of Bt1,159mn relating to the provision for losses recorded in prior years has been reversed through profit or loss in 2013. บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK TFRS 9: Investment in Securities Portfolio and Structure December 2022 (Consolidated) Instrument Type Financial Assets Classification Holding Type TFRS 9: Asset Type (Bt bn) 1,098 (Bt bn) 1,200 1,029 0.4% 1,200 1,098 0.3% 0.9% 1,000 824 11% 777 1,029 0.8% 777 11% 1,000 11% 663 824 0.3% 663 0.4% 12% 0.3% 0.2% 800 10% 17% 0.3% 14% 800 0.1% 0.1% 17% 56% 15% 600 10% 0.1% 0.7% 15% 62% 7% 20% 600 0.7% 56% 16% 18% 400 54% 61% 59% 400 56% 200 66% 53% 54% 38% 38% 32% 200 40% 43% 0 2018 2019 2020 2021 2022 0 6% 2020 6% 2021 5% 2022 Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) Equity Investment Foreign Bonds 2018 Investments Subsidiaries General Available-for-sales 2019 Investment in Receivables Held-to-maturity Trading Investments Subsidiaries Fair value through OCI Amortized cost Fair value through PL Corporate Bonds ■Government & State Enterprise Bonds ■KBank's guideline for investment portfolio management is to primarily maintain liquidity in order to support a future change in business conditions. In addition, an investment strategy was established in line with changes in economic conditions and the movement of money markets and capital markets both at home and abroad. Investment Portfolio (Bt bn) 2018 663 2019 2020 777 824 2021 2022 1,098 1,029 1Q22 2Q22 3Q22 4Q22 1,080 1,050 1,049 1,029 Investment Portfolio (% Growth YoY) 23.51% 17.22% 6.15% 33.16% (6.23) 16.33% 11.03% 2.95% (6.23) บริการทุกระดับประทับใจ 81 82#42K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Deposits Growth and Loans to Deposits Ratio December 2022 (Consolidated) Deposits Loans to Deposits Ratio (Bt bn) 3,000 100% 2,599 2,749 2,345 96.6% 2,400 95.9% 95.7% 1,995 2,072 95% 93.2% 1,800 90.8% 1,200 90% 600 0 85% 2018 2019 2020 ■Deposits 2021 2022 2018 2019 2020 Loans to Deposits 2021 2022 Deposits and Loans to Deposits Ratio is in line with peers. 2018 2019 2020 2021 2022 Deposits (Bt bn) 1,995 2,072 2,345 2,599 2,749 Deposits (% YoY) 6.2% 3.9% 13.2% 10.8% 5.8% Deposits (% YTD) 6.2% 3.9% 13.2% 10.8% 5.8% 1Q22 2Q22 3Q22 4Q22 2,634 2,672 2,660 2,749 9.7% 7.7% 5.1% 5.8% 1.4% 2.8% 2.4% 5.8% Loans to Deposits Ratio (%) 95.9% 96.6% 95.7% 93.2% 90.8% 93.3% 93.2% 92.7% 90.8% บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Funding Structure and Interest Rate Movement December 2022 (Consolidated) 83 Funding Structure Deposit Structure (Bt bn) 2,889 3,053 (Bt bn) 2,800 2,599 2,749 3,200 2,502 6% 7% 2,345 2,800 2,194 2,236 2,400 3% 1,995 2,072 18% 18% 2,400 6% 4% 4% 3% 20% 2,000 3% 2,000 1,600 22% 23% 1,600 3% 4% 76% 1,200 76% - CASA 1,200 93% 94% 90% 91% 74% 800 72% 71% = 82% 91% 800 400 400 0 6% 6% 6% 6% 6% 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Current ■Savings Term Deposits ■ST and LT Borrowings Interbank and Money Market KBank Interest Rate Movement (Retail customers) ST and LT Borrowings (%) Deposit rates (%) (Jan 3, 2023) (Bt bn) 7.00 Savings 0.25 125 103 6.00 Fixed 3M-12M 0.57-1.00 100 68 82 69 5.00 Fixed 24M-36M 1.15-1.35 75 71 4.00 87% 50 3.00 Lending rates (%) (Jan 5, 2023) 84% 100% 99% 97% 25 2.00 MLR 6.37 0.17% 16% 0.19% 1.32% 0 13% 3% 1.00 MOR 6.74 2018 2019 0.00 MRR 6.50 ■ST Borrowing 2020 ■■B/E & Others 2021 2022 LT Borrowing 2015 2016 2017 2018 2019 2020 2021 2022 MLR Savings Fixed3M บริการทุกระดับประทับใจ 84 54#43K KASIKORNTHAI Long-term Senior/Subordinated Debentures Issue Date Name ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Type Feature Amount Maturity Years Interest Rate Payment Credit Rating (Per annum) period Long-term Subordinated Debentures Additional Tier 1 Subordinated 10/08/2021 Unsecured Notes* 14/10/2020 Additional Tier 1 Subordinated Notes* Unsecured Perpetual NC5.5Y Perpetual NC5Y USD350mn 4% Semi- annually Ba2 by Moody's USD500mn 5.275% Semi- annually Ba2 by Moody's 02/10/2019 Tier II Subordinated Notes due 2031* Unsecured 12NC7 USD800mn 12 Years (02/10/2031) 3.343% Semi- annually Ba1 by Moody's BB+ by Fitch Ratings Long-term Senior Debentures 27/12/2022 JPY Sustainability Long-Term Debentures #2** Unsecured JPY2520mn 2.1 Years (20/01/2025) 0.655% On 27/12/23 and 20/01/25 AA+ (tha) by Fitch 15/12/2022 USD Sustainability Long-Term Debentures** Unsecured USD45mn 3 Years (15/12/2025) 5.34% Semi- annually AA+ (tha) by Fitch 15/12/2022 JPY Sustainability Long-Term Debentures #1** Unsecured JPY2745mn 3 Years (11/12/2025) 0.86% annually AA+ (tha) by Fitch 07/12/2018 Floating Rate Notes due 2023* Unsecured USD15mn 5 Years (07/12/22023) 3m Libor+0.95% Quarterly 30/10/2018 Floating Rate Notes due 2023* (Sustainability Bond) Unsecured 12/01/2018 Senior Unsecured Notes due 2023* Unsecured USD100mn 5 Years (30/10/2023) 3m Libor+0.95% Quarterly Baa1 by Moody's USD400mn 3.256% Semi- annually BBB by S&P BBB by Fitch Ratings 5.5 Years (12/07/2023) Note: *The issued notes are drawn from the Bank's USD4bn Euro Medium Term Note Programme (EMTN) Note: ** The issued notes are drawn from the Bank's Bt30bn Medium Term Note Programme (MTN) K KASIKORNTHAI บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: The wholly-owned subsidiaries, and Muang Thai Life Assurance บริการทุกระดับประทับใจ 86 85 85#44K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK The wholly-owned subsidiaries of KBank: Business Profile and Aspiration December 2022 KAsset EST. Mar 1992 Company Name Company Profile KASIKORN ASSET MANAGEMENT CO., LTD. A leader in fund management business (i.e. mutual funds, provident funds, and private funds) KResearch EST. Dec 1994 KASIKORN RESEARCH CENTER CO., LTD. Professional in providing knowledge and analysis in economics, business, money and banking- related issues Only research house which is an affiliate of a bank KSecurities EST. Jul 2002 KASIKORN SECURITIES PCL. Professional in providing a complete range of excellent financial solutions and services, including investment banking, securities underwriting, and securities brokerage KLeasing EST. Dec 2004 KASIKORN LEASING CO., LTD. Professional in providing three core products: hire purchase, financial lease, and floor plan KF&E EST. Jul 1990 KASIKORN FACTORY AND EQUIPMENT CO., LTD. Professional in providing a complete range of machinery and equipment leasing services Asset Size Bt2.91bn Bt0.16bn Bt33.53bn Market Share 18.10% #1 Awareness based on a survey 3% (#12) 2023 Targets Maintain top tier position 3-year Aspiration Maintain top tier position Bt137.37bn Bt23.88bn 9% 16% Maintain the status as a top-notch research house Maintain the status as a top-notch research house Maintain leading position in securities business under local bank parent Top of mind securities firm Maintain a good asset quality portfolio Provide complete range of financial solutions and maintain good asset quality Maintain top tier position and focus on good asset quality Top tier leader in sustainability in equipment leasing บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: 2022 Key Operating Performance December 2022 KAsset 2022 Key Operating Performance EST. Mar 1992 Assets Under Management (AUM): Bt1.49trn KResearch EST. Dec 1994 KSecurities EST. Jul 2002 #1 Awareness based on a survey (-5.5% YoY) Trading volume: Bt1,021bn - Number of customers grew 9% YoY KLeasing KF&E EST. Dec 2004 EST. Jul 1990 Outstanding loans: Outstanding loans: Bt137.37bn (+13.37% YoY) Bt24.31bn (-3.34% YoY) The wholly-owned subsidiaries of KBank: Net Profit (Bt bn) 8 7 5.99 5.6 6 5.39 4.91 5 4.56 3.85 3.66 4 3.23 3 2 1 0 7.2 6.26 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net profit slightly dropped from the same period of 2022, -12.7% YoY. However, KBank continues to create synergy among its wholly-owned subsidiaries. บริการทุกระดับประทับใจ 87 88#45K KASIKORNTHAI KAsset Highlights in 2022 December 2022 หลักทรัพย์จัดการกองทุนกสิกรไทย #KASIKORN ASSET MANAGEMENT AUM (KAsset vs. Industry) (Bt bn) (Bt bn) 10,000 8,000 8,750 2,000 8,279 8,228 7,737 6,959 7,173 6,368 1,500 6,000 5,534 5,118 1,575 1,489 4,253 4,000 3,015 742 1,000 946 851 2,000 (%) 30.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Industry KAsset Market Share by AUM ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 500 Industry Outlook: 2022 industry AUM at Bt8.23trn, decreasing 6% YoY ■KAsset AUM at Bt1.49trn, decreasing 5.5% YoY KAsset Highlights: Ranked #1 in Mutual Fund and #2 in Provident Fund with market share of 21.9% and 17.0%, respectively Ranked #2 in total AUM with market share of 18.1% Mutual fund accounts for 71.6% of KAsset AUM KAsset AUM Breakdown by Type 36.135.985.8 30.031.0 Provident Fund 15.8% 20.721.4 19.218.517.818.018.1 *19.519.019.6 15.0 12.111.310.5 10.210.4 10.810.7 9.6 10.19.3 7.2 7.1 6.5 6.8 6.8 0.0 KAsset SCBAM BBLAM KTAM KSAM Other ■2018 2019 2020 2021 2022 บริการทุกระดับประทับใจ Private Fund 12.7% Mutual Fund 71.6% K KASIKORNTHAI KResearch Highlights in 2022 December 2022 ศูนย์วิจัยกสิกรไทย 开泰研究中心 KASIKORN RESEARCH CENTER ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 30,000 Number of News Quotes 25,000 23,953 22,431 20,000 18,047 15,000 14,532 11,500 10,000 7,910 8,452 5,000 0 2016 2017 2018 2019 2020 2021 2022 89 KResearch Highlights: The most quoted private research house in Thailand #1 awareness, being the top-of-mind research house for the public, based on a survey Source: News Center, isentia, IQnewsClip, etc. The number of quotes from the media newspapers online newspaper and other online news. (excluding magazines, TVs, and Radio) บริการทุกระดับประทับใจ 90 90#46K KASIKORNTHAI KSecurities Highlights in 2022 December 2022 หลักทรัพย์กสิกรไทย #KASIKORN SECURITIES (Bt bn) 42,000 36,000 Trading Volume (KSecurities vs. Industry)* KS CAGR Y2007-2022: 17.5% (Bt bn) 40,998 34,057 1,517 1,800 1,600 29,829 30,000- 24,790 1,119 24,000 21.651 22,937 21,899 1,296 18,000 13,772 12,37712,486 817 20,345 1,251 22,442 19,549 739 868 683 812 12,000 8,544 7,962 8,640 430 411 860 6,000- 207 91 117 0 10.0 (%) 5.0 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 2,000 1,400 Industry Outlook: 2022 industry trading volume* was Bt34.06trn, decreasing 17% YoY. KS trading volume was Bt1,021bn. 1,200 KSecurities Highlights: 1,000 1,021 800 600 400 200 0 KS ranked #12, with 3.00% market share. Majority of revenue came from brokerage. Number of customers account grew 9% YoY to 352,950 customers in 2022. KSecurities Revenue by Business 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Industry Trading Volume KS Trading Volume Market Share by Trading Volume* 3.8 3.0 3.0 3.73.0 3.73.4 3.5 3.3.1 2.11.92.42.42.2 4.64.2 4.9 5.44.7 6.16.16.3 5.1 4.0 3.12.92.9 2.11.9 0.0 KS INVX 2018 KTZ 2019 2020 BLS 2021 2022 TNS MST Note: Industry trading volume excluding proprietary trades ** SCBS change to INVX in Sep 2022 บริการทุกระดับประทับใจ K KASIKORNTHAI KLeasing Highlights in 2022 December 2022 ลีสซิ่งกสิกรไทย 开泰 KASIKORN LEASING KLeasing vs. Industry (Thousand Units) 1,500 (Bt bn) 250 1,042 200 1,000 882 872 1,008 848 792 800 769 762 150 137 100 500 90 89 91 97 108 115 115 121 50 2014 2015 2016 2017 2018 2019 2020 2021 2022 Kleasing Outstanding Loans Total Car Sales in Thailand Market Share by Total Outstanding Loans (%)¹ (%) 50 2729292928 3128282728 25 1516161614 8891012 1211111010 8 7 7 8 9 0 AYCAL TTB 2018 SCB KK TISCO KLeasing 2019 ■ 2020 2021 ■2022 Note: Investment Banking 10% Brokerage and other 90% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 91 Industry Outlook: 2022 industry car sales totaled 848,362 units KLeasing Highlights: 2022 KLeasing loans totaled Bt137.37bn, increasing 13.37% YoY 2022 KLeasing NPL ratio was 1.63%, lower than the Thai commercial bank average ratio³ KLeasing Outstanding Loans Breakdown² Floorplan 8% Fleet / Finance Lease 18% Hire Purchase 74% Other Used Car to Car, 3% Cash, 15% New car, 82% 1 Excluding captive and non-bank leasing 2 New car includes HP New car, Fleet finance, Finance lease (FL) and Floorplan and Used car includes Car to Cash (K-Car / Car registration loan) and other used cars 3 Source: BOT, Data as of Q3 2022 2.77% บริการทุกระดับประทับใจ 92#47K KASIKORNTHAI KF&E Highlights 2022 December 2022 (Bt bn) แฟคเตอรี แอนด์ อีควิปเมนท์ กสิกรไทย 开泰设备融资 KASIKORN FACTORY AND EQUIPMENT KF&E Loan Outstanding 30.0 25.11 25.15 24.31 25.0 22.88 20.38 20.0 17.63 15.0 10.0 5.0 0.0 2017 2018 2019 2020 2021 2022 Industry Outlook: ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Growth in Equipment Leasing (EQL) business forecasted using numerous factors including total import volume of machinery and equipment, direction of government policy, domestic and international business growth opportunities, and Capital Investment Index, including the labor cost factor that causes switching to use machines instead of human labor. KF&E Highlights: 2022 KF&E loan outstanding was decreased Bt24.31bn, 3.34% YoY. KF&E currently ranked #1; maintaining lead position in equipment leasing industry. Note: In 2010, KASIKORN FACTORING (KFactoring) was renamed KASIKORN FACTORY AND EQUIPMENT (KF&E) to better reflect their business, focusing on offering leasing services. for machinery and equipment; the factoring business operation of KFactoring was transferred to KBank บริการทุกระดับประทับใจ K KASIKORNTHAI Life Insurance Industry in Thailand Premium per % GDP by Country (%) 20.0 16.5 15.0 14.0 Y2019 11.6 10.0 5.86.4 5.8 6.07.67.5 5.0 1.51.11.0 2.8 3.23.2 3.44.03.9 2.3 2.4.1 3.3 3.43.4 ■Y2020 ■Y2021 1.41.41 1.221.5 1.41.61.6 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2021, Thailand insurance penetration rate was 3.4% with a high opportunity for growth. ■Muang Thai Life Assurance (MTL) ranked #4 in life insurance industry in Thailand, in 9M22 with 11.6% market share of total premium. #4 in life insurance industry in Thailand, in 2021 93 Source: Swiss Reinsurance Total Premium (Bt bn) Size of Market by Premium(%) CAGR'12-21: 5% New Business Premium Market Share by Total Premium in Life Insurance (%) Source: The Thai Life Assurance Association (%) (Bt bn) 30.0 25.6 700.0 600.0 500.0 400.0 600.2 614.1 200.0 ■2020 ■2021 9M22 25.0 24.3 24.1 180.0 568.3 601.7 627.4 160.0 20.0 610.9 537.5 140.0 14.6 15.2 503.9 15.0 13.4 13.2 442.5 120.0 438.0 14.74.1 12.61.9 300.0 391.4 100.0 10.0 1.11.6 9.1 8.1 200.0 100.0 80.0 7.5 6.2 5.8 5.8 60.0 5.0 5.5 5.2 5.21 5.0 4.4 1.9 6.6 6.9 7.0 4.1 2.4 2.5 40.0 1.41.7 0.0 20.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M22 ΑΙΑ FWD TLI MTL KTAL BLA AZAY PLT OLIC GT Others New Business Premium Total Premium * New Business Premium in 9M22 Bt124.2bn Source: The Thai Life Assurance Association Note: Total Premium = New Business Premium + Renewal Premium; New Business Premium = First Year Premium + Single Premium บริการทุกระดับประทับใจ 94#48K KASIKORNTHAI Bancassurance Highlights in 9M22 40 (%) Bancassurance Market Share by Total Premium (%) ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 30.1 30 27.3 28.8 19.9 20 20 18.4 17.1 ■2020 ■2021 9M22 11.2 10 986 9.211.3 8.3 8.3 9.18.0 9.28.59 8.7 6.1 3.9 4.2 3.84.0 0 FWD MTL KTAL PLT BLA AIA TLI AZAY GT DLA Others 1.82.42.2 1.9 1.72.1 1.22.2 MTL ranked #2 in Bancassurance market #2 in Bancassurance total premium with 17.1% market share #2 in Bancassurance new business premium with 19.0% market share 40 40 30 20 (%) 30.3 21.22.7 16.17.79.0 Bancassurance Market Share by New Business Premium (%) ■2020 ■2021 9M22 17.8 10.62.4 9.8 10 8.1 7.7 8.0 9.2 6.0 6.1 5.5 5.1 8.2 3.23.9 5.03.9 94.6 2.62 2.4 3.2 4.23.9 3.1 0 FWD MTL PLT AIA KTAL TLI SELIC DLA BLA AZAY Others Source: Muang Thai Life Assurance (MTL), The Thai Life Assurance Association (TLAA) monthly report (new format) Note: Bancassurance premium include all bank partners' premiums of MTL บริการทุกระดับประทับใจ 95 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank's Strategic Acquisition in Muang Thai Group Holding (MTGH) MTL's insurance business supports KBank's strategic objective of providing a full range of financial services to satisfy customers' needs and universal banking platform MTGH MTI MTL MTB FVC AIGEN MTIB Current KBank Economic Interests Muang Thai Group Holding Co., Ltd. (MTGH) 51.00% Muang Thai Life Assurance PCL. (MTL) 38.25% Muang Thai Insurance PCL. (MTI) 10.20% Muang Thai Broker Co., Ltd. (MTB) 50.99% MT Insure Broker Co., Ltd. (MTIB) Fuchsia Venture Capital Co., Ltd. (FVC) AIGEN Co., Ltd. (AIGEN) 38.20% 38.25% 51.00% ■ Established on 6 April 1951 mtl MUANG THAI LIFE เมืองไทย First life insurance company to have received the Royal benevolence in granting the appointment as the life insurance company of His Majesty King Bhumibol Adulyadej ■ Joined hands with Ageas in 2004 (formerly known as Fortis Insurance International NV) and joined hands with KBank in 2009 Credit Rating: S&P Global: BBB+ (Stable Outlook) Fitch Ratings: A- (Stable Outlook) / AAA(tha) (Stable Outlook) ■ Thailand Top Company Awards 2022 (Insurance Industry) from Business+ Magazine and University of the Thai Chamber of Commerce ■Most Trusted Life Insurance Company Thailand 2022 from Global Business Review Magazine ■Innovation in Product and Service Award (Life Insurance Industry) from Siamrath Co., Ltd. ■Life and Non-Life Insurance Award Category of Investment-Linked Product from "Muang Thai Unit Linked (uDesign)" and Category of Service from "MTL Click" from Business+ Magazine and Mahidol University Ageas holds 7.83% in MTGH and holds 24.99990% in MTL บริการทุกระดับประทับใจ (Data as of 30 Sep 2022) 96#49K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Muang Thai Life Assurance (MTL) Information Summary stema เมืองไทย mtl MUANG THAI LIFE Strong fundamentals and revenue generation, helped by process efficiency and service quality enhancements; platform and synergy alignment between MTL and KBank Risk-Based Capital (RBC) remains strong, sufficient to support business growth and much higher than OIC minimum requirement Statements of Comprehensive Income (Bt bn) Strategy in 2022 To become the trusted brand that is ready to take care of and stand by next to customers during their every life stage and challenging environments under "MTL Next to You". This can be achieved through presentations of products and services via multi-channel distribution, with innovations and technologies that can address customer needs in every target group in a more personalized manner on digital and non-digital platforms responding to all needs of different lifestyles. The Company also progresses to develop its workforce for handling and adapting itself to the digital world completely and continuously emphasizes market expansion in countries with potential for economic growth. 2020 2021 9M22 Net premiums earned 72.2 69.4 48.0 Net investment income 21.4 22.5 Total revenues 93.6 91.9 14.0 62.0 Long-term technical reserve increase from the previous period 26.0 25.6 10.0 Net benefit payments and insurance claims 43.0 41.6 37.7 Commissions and brokerages 9.1 8.6 5.3 Other underwriting expenses 0.6 0.7 1.8 Operating expenses & Other 5.2 5.5 3.3 Key Financial Targets Total Expenses 83.9 82.0 58.1 Bt bn 2017 2018 2019 2020 2021 9M22 Profit before income tax expense 9.7 9.9 3.9 Income tax expense 1.8 1.8 0.7 Total Premium (after refund) 102.7 94.5 83.8 75.3 73.0 50.8 Net profit (loss) 7.9 8.1 3.2 % Growth 6% -8% -11% -10% -3% -6% Statements of Financial Position (Bt bn) 2020 2021 9M22 2020 2021 9M22 Total Assets Total Liabilities Total Equities 556.4 607.5 483.4 520.9 73.0 86.6 619.1 ROE (%) 11.3% 10.2% 5.6% 537.3 ROA (%) 1.4% 1.4% 0.8% 81.8 Risk-Based Capital (RBC) 323.3% 359.7% 320.3% Source: Muang Thai Life Assurance, data based on book value except for RBC บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Investment Portfolio and Insurance Premium MTL Investment Portfolio: MTL Total Premium Fixed Income accounted for around 83% (bn) 94.5 Ghehqwxuh 5916( 100 90 Vwr fn 4316 ( 80 70 60 Qrwh 50 615 ( 40 30 Srdf #Ordq 20 618 ( Jry# #72H# Erqg 8513( 10 TTTTTTTTT 83.8 Total Premium MTL Industry 75.3 73.0 Growth 71.7 (%YOY) 57.9 53.8 50.8 49.3 Y2018 -8% 4% Y2019 -11% -3% 31.1 26.0 22.8 23.7 21.6 19.8 Y2020 -10% -2% Y2021 -3% 2% Xqlwuxvw 0 T 9M22 -6% 0% 5k ( Ghsrvlw 2018 2019 2020 2021 9M22 319 ( P ruwjdjh New Business Premium Renewal Year Premium ■Total Premium Ordq 318 ( 100% Typ hqwSurshuw 31; ( Assets Under Management (AUM)* (9M22): Bt 573,310 bn MTL Total Premium by Products: Ordinary product accounted for around 88% in 9M22 IIIII 80% 60% 40% 20% 0% 2018 2019 2020 2021 9M22 Group Personal Accident *Remark: Invested Assets + Investment Property ■Industrial ■Ordinary Source: The Thai Life Assurance Association MTL Total Premium by Channels: Bancassurance accounted for about 59% in 9M22 100% 80% 60% 40% 20% 0% 2018 Other 2019 ■Direct Marketing 2020 2021 9M22 Bancassurance ■Agents Source: The Thai Life Assurance Association (TLAA) / 2019 - 3Q22 data from TLAA monthly report (new format) บริการทุกระดับประทับใจ 97 98#50K KASIKORNTHAI MTL International Business Expansion ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Current International Business Project (On-going) Cambodia Company Name Sovannaphum Life Assurance Plc. Dara Insurance Plc. Lao PDR ST-Muang Thai Insurance Co., Ltd. Vietnam MB Ageas Life Insurance Co., Ltd. Entry Strategy เมืองไทย Joint Venture with Canadia Investment Holding Plc. Joint Venture with Individual Shareholders Ownership by MTL 49% 25% Joint Venture with ST Group Co., Ltd and Muang Thai Insurance Company Limited (MTI) Joint Venture with Military Bank and Ageas 22.5% 10% Myanmar Operation Year 2015 2018 2016 2017 2014 Business Operation Life Insurance General Insurance Composite Insurance (Life & General) Life Insurance Representative Office บริการทุกระดับประทับใจ K KASIKORNTHAI MTL's Life Insurance Product Profile Four Major Types of Life Insurance Product ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Ordinary Life Insurance Products: Provide life protection for a fixed amount to an insured person Can be further classified into four sub-categories; ➤ Endowment Life Insurance: Savings type product; insured person receives an amount at the certain period of time or a designated beneficiary receives death benefits upon the death of the insured person within the insured period (e.g. Pro Saving products) Term Life Insurance: Provides temporary protection with no savings component. Claim can be made upon death within the stated term period (e.g. MRTA products) Whole Life Insurance: Provides life time protection (to the age of 90 or 99) with the death benefit paid to the beneficiary upon the death of the insured (e.g. Pro Life products) Rider: Additional coverage desired by the insured (sample of additional coverage: medical expense, accident) ■Group Life Insurance Products: Term insurance covering a group of people, usually employees of a company or members of a union or association ■Industrial Insurance Products: Life insurance with a modest amount of coverage, low premium, and no health check requirement Personal Accident: A limited life insurance designed to cover the insured in case of personal accident บริการทุกระดับประทับใจ 99 100#51K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE K-Bancassurance Products¹) KASIKORNTHAI dalin Kha Endowment Life Insurance เชียงให mtlMuang Thai Life Assurance Products²) Endowment Life Insurance Muang Thai Smart Linked 15/3 (Global) Payment premium for only 3 years, but the coverage continues for 15 years Endowment 615 Participating (Global) Pay premium for only 6 years, but the coverage continues for 15 years ความคุ้มครองชีวิตเป็น % ของจำนวนเงินเอาประกันภัย ณ วันเริ่มมีผลคุ้มครองตามกรมธรรม์ หรือมูลค่าเวนคืนในขณะนั้น ตามแต่จ่านวนใดจะมากกว่า Life coverage is in % of the initial sum insured, or cash surrender value at the time, whichever amount is higher 660% Life Coverage End of Policy Year 220 % 110 % 330% 550% ຈາະເພິ່ນຈະດ້າມກັບ 440% ณ ในปีกรมธรรม์ 330% Premium payment at the 220% nowned ประกัน beginning of policy year 110% payment ปีกามยาวม์ที่ " End of policy year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 เงินจ่าเห็น Cash bonus: ----+ รับเงินจ่ายคืน 5% ณ สิ้นปีกรมธรรม์ ทุกๆ 2 ปีกรมธรรม์ ยกเว้นสิ้นปีกรมธรรม์ที่ครบกำหนดสัญญา * * * * * Receive cash bonus at 5% at the end of policy year for every two policy years. Except at the end of policy maturity เงินบอด Maturity Benef 600% เงินปันผลเมื่อทาบ Sea 129 Maturity dividend Term Life Insurance MRTA-Home (Mortgage Reducing Term Assurance) Example, in case the customers choose to insure their loan in full term and full coverage Loan Amount Sum insured amount Premium payment at the beginning of policy year The contract starts Coverage of Pitaksin-Home is equivalent to the reducing sum insured amount Policy Year Coverage 4 S Loan Amount Scenario1: Death or total and permanent disability The customers can choose to continue the coverage. throughout the contract term or receive cash surrender value Premium Payment at the Beginning of Policy Year Cash Bonus(1) Maturity 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Benefit 300% Maturity Dividend (if any) (1) Benefit and coverage are % of the initial sum insured. In case the benefit amount and coverage are stated incorrectly, the specified % shall apply. (2) The dividend shall be paid to the insured who is alive upon contract maturity only. However, the Company does not guarantee maturity dividend. (3) (The amount shown in the schedule below is calculated based on "Maturity Dividend Formula" only.) The Company shall pay 300% of the initial sum insured or 101% of the paid premium to the insured, whichever is higher. (4) Life coverage is equivalent to % of the initial sum insured according to the above schedule or the cash surrender value at that time or 101% of the paid premium (whichever is higher). Term Life Insurance Khumkhrong Baep Khongthi Life-Bukkhon Single Premium payment period, but the coverage can be chosen between 1 - 15 years Term of installment loan 10 12 " 14 Term of insurance 15 End of Policy Year Premium Payment Scenario1: Early Redemption at the Beginning of Policy Year Remark: the above coverage is based on an assumption that the customer's credit repayment history is normal according to the Bank's loan contract 1) K-Bancassurance products are MTL's life insurance products selling through KBank 2) Muang Thai Life Assurance products are MTL's life insurance products selling through MTL sales agents, and/or other channels บริการทุกระดับประทับใจ Remark (1) Is in % of the initial sum insured Coverage Period Premium Payment Period 1-15 Years Single Premium 100% (1) Life Coverage Maturity K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE KASIKORNTHAI K-Bancassurance Products1) Whole Life Insurance เมืองไทย mtl Muang Thai Life Assurance Products²) Whole Life Insurance 101 Muang Thai Khumkhrong Talot Chip 99/1 (CB 2.25%) Life insurance with single premium, but the coverage continues to age 99 years ตัวอย่าง Example สิ้นปีกรมธรรม์ที ความคุ้มครองชีวิต 105% ตลอดสัญญา หรือมูลค่าเวนคืน Life coverage at 105% throughout the insurance contract or surrender value หยุดชาระเบี้ยประกันภัย End of policy year Stop premium payment เงินจ่ายคืน 0 1 2 Cash bonus Muang Thai Smart Protection 99/7 Whole life coverage: payment premium for 7 years and get coverage to the age of 99 100% (1) Life Coverage Attaining the age of End of Policy Year 23456789101 m 98 99 Years Premium Payment อายุ 97 Age of 97 รับเงินจ่ายคืน 2.25% ของจำนวนเงินเอาประกันภัย ณ วันเริ่มมีผลคุ้มครองตามกรมธรรม์ ตั้งแต่ปีกรมธรรม์ที่ 1 - ครบอายุ 98 ปี ครบอายุ 58 ครบอายุ 90 ปี Attaining the Attaining the age of 98 at the Beginning of Policy Year Receive cash bonus 2.25% of the initial sum insured. from policy year 1 to attaining the age of 98 age of 99 เงินครบสัญญา Maturity benefit 102.25% (1) Life coverage is 100% of the initial sum insured or cash surrender value at that time or 101% of paid premium (whichever is higher). (2) In case of being alive until contract maturity, the benefit is 100% of the initial sum insured or 101% of paid premium (whichever is higher). Maturity Benefit 100% © Elite Health Plus Rider Right Coverage Medical expense coverage for both OPD and IPD which is paid by actual amount Comprehensive Coverage Standard single room at any hospital or special single room at 10,000-25,000 Baht per day Rider D Health Plus Rider OPD Rider Long-Term Health Coverage Insurable age is until the age of 90 with coverage period until the age of 99. Be Covered to the Max Lump sum benefit based on actual expense of 5 million Baht* Standard single room in any hospital Plus Additional Coverage Maternity Plus or Well-Being Plus that covers health checkup, vaccination, dental care, and eye care which meet all of your needs. Long-Term Health Care Entry age is up to 90 years old with long-term coverage until attaining the age of 99 Receive OPD Coverage Up to 30 times per year The Right Rider This OPD rider is not required to be purchased together with IPD coverage. Complete Coverage Including doctor's fees, disagnosis charges, or medical expenses 1) K-Bancassurance products are MTL's life insurance products selling through KBank 2) Muang Thai Life Assurance products are MTL's life insurance products selling through MTL sales agents, and/or other channels บริการทุกระดับประทับใจ 102#52K KASIKORNTHAI KBank: Other Information บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK K KASIKORNTHAI Shareholder Structure September 8, 2022 (Record Date) Shareholder Structure Top 10 Shareholders* 1. THAI NVDR CO., LTD.** 2. STATE STREET EUROPE LIMITED ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % 19.356 10.356 3. SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 4.651 Thai Shareholders 56.8% 4. THE BANK OF NEW YORK MELLON 3.355 Foreign Shareholders 43.2% 5. SOCIAL SECURITY OFFICE 2.359 (NVDR 6. SOUTH EAST ASIA UK (TYPE A) NOMINEES LIMITED 2.024 = 19.356%**) 7. STATE STREET BANK AND TRUST COMPANY 1.648 8. BNY MELLON NOMINEES LIMITED 1.507 9. SE ASIA (TYPE B) NOMINEES LLC 10. BBHISL NOMINEES LIMITED 1.052 0.983 Note: Foreign Shareholding Limit 49% Other Shareholders Total 52.708 100.000 Note: The Top 10 Shareholders are based on individual accounts ** Thai NVDR Co., Ltd (Thai NVDR) is responsible for issuing and selling Non-Voting Depository Receipts (NVDRS) to investors. The Stock Exchange of Thailand (SET) is the major shareholder, holding 99.99% of the total shares, of Thai NVDR. The NVDR limit for KBank is 25%. *** Thailand Securities Depository Company Limited (TSD), a subsidiary of the Stock Exchange of Thailand, provides three types of securities post trade services: securities depository services, securities registration services, and provident fund registration services; the shareholders booked under TSD are those who are not eligible for dividend payments as their investment is not aligned with their citizenship (i.e. foreign investors buying KBank shares on the local board or Thai investors buying KBank shares on the foreign board) Source: Thailand Securities Depository Company Limited (TSD), the Stock Exchange of Thailand website (www.set.or.th), and KBank บริการทุกระดับประทับใจ 103 104#53K KASIKORNTHAI Credit Ratings As of January 25, 2023 KBank Local Currency/ National Long-term Outlook Subordinated Debts Foreign Currency Long-term * Senior Unsecured Subordinated Debts Notes ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Thailand Government Outlook Foreign Local Currency Currency S&P's BBB¹) BBB¹) N/A N/A N/A Stable¹) BBB+ A- Stable Moody's Baa1 Baa1 Ba12) Baa1 N/A Stable Baa1 Baa1 Stable Fitch BBB BBB BB+ AA+ (tha) AA-(tha) Stable BBB+ BBB+ Stable Note: * Moody's: Foreign Currency Long-term Deposit Rating; S&P's: Long-term Counterparty Credit Rating; Fitch Ratings: Foreign Currency Long-term Issuer Default Rating 1) March 21, 2022: S&P's downgraded long-term credit ratings of 4 Thai banks, including KBank, as systemic risks have increased for banks operating in Thailand. S&P's downgraded long-term credit rating of KBank from BBB+ to BBB. However, S&P"s upgraded outlook of their credit ratings to stable from negative as it views theirs credit ratings would be stable in next 1-2 years 2) November 7, 2022: Moody's downgraded the Baseline Credit Assessments (BCAs) of two Thai banks, including KBank, to baa2 from baa1, reflecting the structural challenges to their asset quality and profitability that are exacerbated by the slow economic recovery in Thailand. Moody's also downgraded KBank's foreign-currency subordinate MTN program rating to Ba1 from Baa3 and its foreign-currency preferred stock non-cumulative MTN program rating to Ba2 from Ba1. K KASIKORNTHAI Organization Chart Auditor บริการทุกระดับประทับใจ Shareholders Corporate Secretary Board of Directors Corporate Secretariat Division Management Committee ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Advisory Council to the Board of Directors Legal Adviser Credit and Investment Screening Committee Corporate Governance Committee Human Resources and Remuneration Committee Risk Oversight Committee Audit Committee Audit Division Corporate Strategy & Analytics Corporate Strategy and Innovation Division Product Management Private Bank Business Business in Overseas Service Fulfillment Credit Products Division Transaction and Wealth Banking Division Private Banking Group World Business Group Customer and Enterprise Service Fulfillment Division Risk & Resources Management Enterprise Risk Management Division Channel & Marketing Management Capital Markets Business Data and Analytics Division Integrated Channels and Business Solutions Division Marketing Management Division Finance and Control Division Capital Markets Business Division Sales & Service Distribution Network Corporate Business Investment Banking Business Division Human Resource Division Division Division บริการทุกระดับประทับใจ Note: Effective on 1 January 2023 105 106#54K KASIKORNTHAI Board of Directors Structure ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■18 board members: 6 Independent Directors, 5 Executive Directors, and 7 Non-Executive Directors ■Director age limit is 72 years old ■Term limit of directorship for Independent directors shall not exceed nine consecutive years Executive Directors (5) ⚫ Ms. Kattiya Indaravijaya (Chief Executive Officer) ⚫Mr. Pipit Aneaknithi (President) • Mr. Patchara Samalapa (President) ⚫Mr. Krit Jitjang (President) ⚫ Dr. Pipatpong Poshyanonda (President) Non-Executive Directors (7) ⚫ Ms. Sujitpan Lamsam • (Vice Chairperson) Sqn.Ldr. Nalinee Paiboon, M.D. (Chairperson of the Corporate Governance Committee) • Mr. Saravoot Yoovidhya • Mr. Kalin Sarasin (Chairman of the Risk Oversight Committee) • Mr. Sara Lamsam ⚫ Ms. Chonchanum Soonthornsaratoon (Legal Adviser) • Mr. Suroj Lamsam Independent Directors (6) ⚫ Ms. Kobkarn Wattanavrangkul (Chairperson of the Board) • Mr. Wiboon Khusakul ⚫ Ms. Suphajee Suthumpun (Chairperson of the Human Resources and Remuneration Committee) • Mr. Chanin Donavanik ⚫ Ms. Jainnisa Kuvinichkul Chakrabandhu Na Ayudhya ⚫ Ms. Kaisri Nuengsigkapian (Chairperson of the Audit Committee) Note: More information on the Board of Directors biographies can be found on our website at https://www.kasikornbank.com/EN/about/Pages/board-of-directors.aspx บริการทุกระดับประทับใจ K KASIKORNTHAI Sustainable Development Framework and Policy ASPIRATIONS SD FRAMEWORK GOAL COMMITMENT SD POLICY MATERIAL AREA Environment Bank of Sustainability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Be an ESG Leader among Banks in Southeast Asia Ensuring environmental stewardship towards a net zero-carbon society We are committed to preserving the environment and reducing the impact of climate change. 1. Committing to becoming Net Zero in our own operations by 2030 2. Committing to reducing greenhouse gas emissions in our financed portfolio in line with Thailand's aspirations; reducing greenhouse gas emissions in significantly impacted sectors, both in terms of greenhouse gas emission volume and the proportion of loans extended to each sector; and accelerating this journey where possible 3. Being the leader in innovative "Green Finance" in Thailand 4. Providing services beyond financial solutions to support decarbonization in Thailand ⚫ GREEN OPERATIONS ⚫ SUSTAINABLE FINANCE Society Being a responsible corporate citizen to create a sustainable society We are committed to developing strong relationships with employees and society to better livelihoods and increase prosperity. STAKEHOLDER ENGAGEMENT 5. Ensuring financial inclusion and promoting financial literacy 6. Safeguarding customer data security and privacy 7. Ensuring the "Best Place to Work, Learn and Lead" by embedding Green DNA and creating future-ready workforce 8. Respecting for human rights and diversity 9. Promoting the development of youth potential as well as the pursuit of environmental, public and social activities ⚫ FINANCIAL INCLUSION and FINANCIAL/CYBER LITERACY ⚫ RESPECT TO HUMAN RIGHTS ⚫ CUSTOMER DATA SECURITY AND PRIVACY Governance / Economy Being an accountable bank to create sustainable profitability We are committed to strong ESG principles to be a responsible and accountable bank 10. Ensuring business operations under good corporate governance practices and delivering services to customers with fairness 11. Adhering to customer centricity by initiating financial innovations that meet every aspect of customers' needs 12. Ensuring efficient risk management focusing on environmental, social, and governance (ESG) issues ⚫ ESG RISK MANAGEMENT AND COMPLIANCE 1: PARIS2015 13 со M บริการทุกระดับประทับใจ 107 108#55K KASIKORNTHAI KBank Sustainable Development Journey Bank of Sustainability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK conducts business with the principles of a Bank of Sustainability, supported by good corporate governance principles, as well as appropriate risk and cost management. We strive to balance economic, social, and environmental dimensions to achieve goals and create sustainable long-term returns. The philosophy of sustainable development is instilled in all our operations as part of our Green DNA, ensuring maximum benefit for all stakeholders and paving the way for sustainable growth. KBank Sustainable Development Journey CSR after process CSR in process SD Policy Human Right Policy BOT & TBA Responsible Lending 2010 2012 SD Report 2014 SD Policy ESG credit policy Net Zero Commitment Decarbonization PCAF 2016 2019 2020 2021 Human Right Due Diligence Carbon Neutral Scenario Analysis UN PRB TCFD* UN PRI 2022 UN Global Compact Net Zero INTERNATIONAL = Bloomberg Gender Equality FTSE4Good MSCI The first Bloomberg Gender-Equality Index (GEI) member from Thailand. The Bloomberg Gender-Equality Index (GEI) distinguishes companies committed to transparency in gender reporting and advancing women's equality for four consecutive years (2019-present) A member of the FSTE4Good Emerging Index for six consecutive years (2016-present) KBank's Leadership Level rating is at AA for its ESG performance among emerging market banking sector peers Member of CDP A LIST 2022 CLIMATE Dow Jones Sustainability Indices Powered by the S&P Global C84 Pride of KBank The first Thai commercial bank with CDP A List (Leadership Level) in Climate Change, assessed by the Carbon Disclosure Project (CDP) The first and only commercial bank in Thailand and ASEAN selected as a member of the DJSI World Index and DJSI Emerging Markets Index for seven consecutive years (2016- present) Sustainability Award KBank has been classified in the Gold Gold Class 2022 S&P Global Class of the banking industry from S&P Global Sustainability Awards (2022) (Bronze Class 2018-2020 and Silver Class 2021) NATIONAL THSI THAILAND SUSTAINABILITY INVESTMENT 2022 ESG100 LCSt Included in Thailand Sustainability Investment (THSI) for seven years (2015, 2017-2022) carbon ESG 100 certificate 2022 (Certified by Thaipat Institute) neutral An Excellence award under The Low Carbon and Sustainable Business Index (LCSI) award (2021- 2022) BEST Sustainability Excellence V Sustainability Disclosure Award 2022 granted by Thaipat Institute The first and only commercial bank in Thailand granted Carbon Neutral Certification (2018-2022) SET Sustainability Awards granted by the Stock Exchange of Thailand - Best in Sustainability Awards (2022) and Highly Commended in Sustainability Awards for three years (2018-2019,2021). *For more information on KBank Task Force on Climate-related Financial Disclosures (TCFD), please see our Sustainability Report or visit our website at www.kasikornbank.com บริการทุกระดับประทับใจ 109 K KASIKORNTHAI KBank Net Zero Commitment Net Zero in OUR OWN OPERATIONS (Scope 1 & 2) by 2030 Net Zero in OUR FINANCED PORTFOLIO (Scope 3) In Line With Thailand's Aspirations*, Accelerating This Journey Where Possible NET ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Allocation at least 100-200 Billion Baht In Sustainable Financing and Investment By 2030 Commitment Supporting Customers In the Transition to A Net Zero Economy * Thailand's ambition at COP26: 2050 carbon neutrality and 2065 Net Zero GHG Emission KBank's Board of Directors has resolved to announced the Bank's Net Zero Commitment on 29 October 2021, as follows: ➤ KBank aims to empower every customer's life and business. We support our customers in the transition to a net zero economy. Sustainability is deeply ingrained in how we serve our customers and manage our operations. A We are committed to supporting Thailand and our clients in regional economies on their decarbonization journeys. We will contribute to the global effort to transition to net zero emission by 2050* and will align with the Paris Agreement goals. We are committed to be the leading sustainable bank in Thailand, allocating at least Baht 100-200 billion in sustainable financing and investment by 2030 and pioneering green banking products. We commit to becoming net zero in our own operations (Scope 1, 2) by 2030. We commit to achieving net zero in our financed portfolio in line with Thailand's aspirations, accelerating this journey where possible. We will continually assess opportunities to take earlier actions as the technology, regulatory environment and external context evolves. * Net zero emission by 2050 is the global effort to transition to net zero emission, aligning with the Paris Agreement goals. However, KBank commit to achieving net zero in our financed portfolio in line with Thailand's aspirations, accelerating this journey where possible. บริการทุกระดับประทับใจ 110#56K KASIKORNTHAI Environmental Aspect (1/2) GOAL Ensuring environmental stewardship towards a net zero society ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Commitment We are committed to preserving the environment and reducing the impact of climate change Green operations Material Areas and Targets Target: Transition to Net Zero in Our Own Operations (Scope 1&2) by 2030 Target -8.4% -12.6% (Ton CO2e) 2020 2021 2022 2023 Note: Baseline year 2020; Align with 1.5 degrees scenario. -16.8% -21% Net Zero 2024 2025 2030 KBank Decarbonization Pathway in Our Own Operations (Scope 1&2) 97,785 90,172.91 (-7.79%) 77,251 (-21.00%) 69,037 (-29.40%) 60,823 (-37.80%) 2020 (Base year) 85,465 (-12.60%) 2021 2023 This target is considered to align with SBTi. 2030 2025 2023 73 Scope 1. 2025 2027 2029 2030 Scope 2 • Actual Target Net Zero in our own operations (Scope 1&2) 21% reduction of GHG Emissions 12.6% reduction of GHG Emissions (Cumulative from base year 2020) Emission from fossil fuel burned from KBank own car fleet EV Fleet Conversion Adopt lower emission factor fuel (E85, B20) Emission incurred from electricity consumption Solar rooftop installation Energy Conservation Measures (Building Retrofit, BMIS) Space Optimization Renewable Energy Certificates (REC) Sample of Performance Own operations (Scope 1& 2): GHG Emission Reduction (Baseline year 2020) > 2021 Target: -4.2% > 2021 Performance: -7.79% > 2022 Target: -8.4% Enhance Environmental Management: - Environment and energy conservation policy - Environmental management system development Green building designing Green process designing Green mobility Green facility management: > Lighting system management > Clean energy management > Water use management > Green waste management Raise employees' awareness on energy and environmental conservation and adopt green behavior *2020-2021: KBank Actual Emission Note: 2022 onwards is forecasted based on minimum guideline align with 1.5 degrees scenario Residual emission . Carbon Removal Note: Y2022 Actual Emission will be reported in Sustainability Report which will be available in March 2023. บริการทุกระดับประทับใจ 111 K KASIKORNTHAI Environmental Aspect (2/2) GOAL Ensuring environmental stewardship towards a net zero society ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Commitment We are committed to preserving the environment and reducing the impact of climate change Material Areas and Targets Sustainable Finance Targets: Transition to Net Zero in our finance portfolio (Scope 3) in line with Thailand's Aspiration*, accelerating this journey where possible ➤ Decarbonization Pathway in our Financed Portfolio (Scope 3) Minimize lending to projects with high GHG emissions • Increase financial support to environmentally friendly projects or projects with no or low GHG emissions Sample of Performance Sector Prioritization for Glidepath MATERIALITY ASSESSMENT 1 Calculating the greenhouse gas emissions of each industry in the Bank's portfolio as a proportion of loans to different industries to rank those industries with significant greenhouse gas emissions. FEASIBILITY ASSESSMENT 2 Studying the assessment methodology of each industry, which depends on the availability of data used in the calculation and various reference scenarios (Availability of Methodology) and Availability of Counterparty Data. ABILITY TO DELIVER ASSESSMENT 3 Consider the ability to change each industry (Decarbonization Trend), Complexity to Execute, and Local Context to be used as factors in ranking the industry. Targets: Allocate at Least Bt100-200bn in Sustainable Financing and Investment by 2030 Sector Prioritization for Portfolio decarbonization management The Bank assessed and formulated a Sector Decarbonization Strategy ➤ Y2022 - 3 sectors: Power Generations, Oil and gas, and Coal mining ➤Y2023 2 Sectors Sustainable Financing and Investment: ➤ 2022 Targets: Bt25bn ► 2022 Performance: Bt26bn * Thailand's ambition at COP26: . 2050 carbon neutrality and 2065 Net Zero GHG Émission บริการทุกระดับประทับใจ 112#57K KASIKORNTHAI Social Aspect: GOAL Commitment Being a responsible corporate citizen to create a sustainable society ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK We are committed to developing strong relationships with employees and society to better livelihoods and increase prosperity. Material Areas and Targets Financial inclusion and financial/cyber literacy Target: 1) Loans to Small-Pocket Customers in Y2023 = 600,000 customers with strategies as follows: - Select and understand customers using data analytics capabilities and improve credit processes with risk-based offerings, affordability assessment, cost effectiveness, and collection and recovery - Collaborate with partners - Build customer capabilities toward sustainable growth 2) Increase cyber literacy knowledge and awareness to reach 10 million persons in Y2023 Customer data security and privacy Protect customer assets, provide secure services, and ensure care & timely responses as follows: - Deliver secure and efficient services and workplace Strengthen third party risk management Expand detection and responses Respect for Human rights Respect to human rights Human rights risk assessment in all business activities: 100% of KBank and joint ventures of KBank Note: Small-pocket customers include financial inclusion customers; 1) Customers whose salary do not exceed Bt30,000/month 2) Enterprise with sales do not exceed Bt10mn/year Sample of Performance Loan to Small-Pocket Customers: around 588,057 customers Cyber literacy campaign reached more than 10.8 million people in 2022 Number of employee volunteer hours: 216,886 hours Number of beneficiaries from CSR activities: 988,287 persons Employee engagement score: 77% Female in leadership position: 62% Internal employee filled in rate: 85% Respect to human rights: Human rights risk assessment in all business activities: 100% of KBank and joint ventures of KBank จงอย่า AGAN ส 15bdu ตั้ง ได 15175 PAYLATER 55 บริการทุกระดับประทับใจ KBank KAYLATER ช้อปตอนนี จ่ายตอน น 113 K KASIKORNTHAI Governance GOAL Commitment Being an accountable bank to create sustainable profitability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK We are committed to strong ESG principles to be a responsible and accountable bank Material Area and Targets ESG Risk Management and Compliance ESG credit: 100% of Project Finance requests and medium enterprises (and above) must be processed through the ESG credit assessment Sample of Performance In 2022, 100% of project finance and above medium- sized entrepreneurs passed ESG risk assessment worth Bt514,652mn Corporate Governance and Anti-Corruption Corporate Governance Reviewing KBank practices under Thai IOD, ASEAN CG Scorecard, and Dow Jones Sustainability Indices (DJSI) criteria ASEAN CORPORATE GOVERNANCE Implementing a strategic plan for CG activities to enhance compliance by directors, executives, and staff with CG principles, Code of Conduct, and Anti-Corruption Policy through Organizing training courses and continually communicating via e-Learning system Communicating with companies within KASIKORNBANK FINANCIAL CONGLOMERATE to ensure consistency of operations Reviewing the Statement of Business Conduct, the Code of Conduct, the Statement of CG Principles, CG Policy, and related Charters; keeping them up-to-date in accordance with Ongoing business operations and Bank Sustainability Compliance with laws, international practices, and best practices as prescribed by regulatory agencies and competent agencies • . Anti-Corruption KBank, KAsset, and KSecurities co-signed a declaration of the "Thai Private Sector Collective Action Against Corruption (CAC)" project and have been recognized as CAC certified companies since 2013. BOD approved the revised Anti-Corruption Policy in compliance with the assessment and certification criteria for anti-corruption measures of the Thai Private Sector Collective Action against Corruption. Internal Communication on Anti-Corruption Policy to ensure proper practices within the organization by Organizing training courses for executives and employees Communicating with all directors, executives and employees via KBank electronic networks and website Communicating with suppliers on operational guidelines, including Communication of supplier manual on the Code of Conduct related to business ethics, human rights and labor, anti-corruption, safety and occupational health, and environment for acknowledgment and compliance. Communication of the No Gift Policy for all occasions and festive seasons. Communication of the Bank's procurement procedures and policies, as well as sustainable business operations under good corporate governance, procurement with responsibility and operations in accordance with the ESG principles. Communication of the Code of Conduct and Anti-Corruption Policy. Provision of various channels to receive information, complaints and whistle-blowing บริการทุกระดับประทับใจ 114#58K KASIKORNTHAI ESG Risk Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank has established credit policies and operations that manifest ESG responsibility with an operational structure divided into management and transaction levels, as follows: At the management level Lending activities are structured so as to demonstrate environmental and social responsibility as follows ➤Board of Directors Approving risk management policy, frameworks, risk limits and risk appetites Risk Oversight Committee Board of Directions Corporate Governance Committee Risk Oversight Committee . Overseeing and ensuring compliance with consolidated risk management policies and strategies and acceptable risk appetite Assessing risk management policies and strategies to cover all risks including emerging risks ➤ Corporate Governance Committee Overseeing, monitoring, and undertaking sustainable development Credit Risk Management Sub-committee Sustainable Development Sub-committee Business Units Monitoring and Controlling Function ➤ Sustainable Development Sub-committee • Considering and approving sustainable development frameworks and action plans Overseeing and monitoring sustainable development operations ➤ Credit Risk Management Sub-committee • Determination of ESG credit policy and processes Business units . Screening environmental and social risks of project financing and commercial credits to be supported Ensuring and monitoring projects' compliance with regulations/ environmental and social management plans ➤ Monitoring and Controlling Functions • Ensuring credit policy and procedure compliance Reporting project finances and concerning environmental and social issues to the Corporate Governance Committee บริการทุกระดับประทับใจ K KASIKORNTHAI ESG Risk Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank has established credit policies and operations that manifest ESG responsibility with an operational structure divided into management and transaction levels, as follows: Exclusion List Offences relating to gambling Offences relating to Human trafficking At the transaction level The Bank ensures that lending transactions violate neither the law nor social ethics Offences relating to embezzlement Offences relating to exploitation of natural resources Offences relating to narcotics Offences relating to terrorism CO₂ Examples of Exclusion List: 。 Offences related to illegal activities or activities that risk violation of laws including domestic environmental laws and international agreements, for example: ■ Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal or related rules and regulations, etc. 。 Credits related to destroying or encroaching upon important ecosystems, such as mangrove forests and conservation areas, for example: ■ Natural parks, conservation areas and animal sanctuaries per related public notifications UNESCO World Heritage Sites, etc. " 。 Credits for hydropower generation from dams that generate significant impacts on the environment and society, without management measures and work plans in accordance with the Equator Principles and without support from international financial institutions for development or foreign financial institutions that have accepted the Equator Principles 。 Stop financing project of new coal-fired power generation (100% discharge existing loans on coal-fired power plants by 2030), unless there is a strategy to add or change to other low-carbon energy sources Sector - Specific Guidelines KBank has developed the loan consideration guidelines for specific industrial sectors in accordance with environmental and social impacts by including ESG factors in credit consideration for each industry in addition to other factors, to ensure that risk management at the credit portfolio and transaction levels comply with the target to achieve a low-carbon economy, especially for the industries with risks of environmental and social impacts, for example: 。 Agricultural Industry: No support for business operators that encroach upon or destroy forest areas, or conduct slash-and-burn farming practices 。 Fishery: No support businesses conducting unlawful operations, or Unregulated Fishing (IUU Fishing), or catching restricted animals or animals included in CITES 。 Electricity Generation: Support renewable energy plants, e.g. solar and wind, power plants using other fuels, e.g. biomass and waste etc. บริการทุกระดับประทับใจ 115 116#59K KASIKORNTHAI Public Recognition Highlight: 2021-2022 2021 Sustainability Award. Sustainability Award, Silver Class of CDP-B score from 2020 Carbon Disclosure Project (CDP) THE Asset S&P Global RETAIL BANKER MENTERNATIONAL THE Asset ThaiBMA the banking industry - Winner- Best Retail Bank Thailand Winner- Excellence in Service Innovation Highly Commended Achievement- Best Social Media Marketing Campaign Highly Commended Achievement- Best Payment Innovation - Highly Commended Achievement- Excellence in SME Banking The Asset ESG Corporate Awards 2020 Platinum Award: Excellence in ESG Digital Private Bank of the Year in Thailand ASIAMONEY - Best for ESG in Thailand Best for HNW in Thailand การเงินธนาคาร ADB Bank of the Year 2021 Best SME Deal (WBG) DIGITAL BANKER Best Service Provider-Cash Management - Best Service Provider-E-Solutions Partner Project Finance House of the Year Power Deal of the Year Best Private Bank - Thai Baht Bond Research Battery Storage Deal of the Year Green Project of the Year - Most Prominent Fund House in Corporate Bond Market - Best Bond House - Top Underwriting Bank Best THOR Engagement Bank-Southeast Asia Highly Commended: Outstanding Private - Best Private Bank-HNWIS PRIVATE BANKER INTERNATIONAL Highly Commended: Best Bank for Sustainability and ESG leadership - Best Retail Bank in Thailand THE ASIAN BANKER- Best Merchant Service (Facebook Pay). MORNINGSTAR Best Fund House - Domestic Equity a THE DIGITAL BANKER - Best Retirement Mutual Fund - Equity - Best Thailand Equity Large-Cap Fund - Best Thailand Mid/Long-Term Bond Fund - Best Digital/Mobile Banking Service - Top Mobile Banking in Asia Pacific (KBTG) GORANCE - Best Consumer Digital Bank in Thailand FINANCE FinanceAsia - Best FX Bank for Structured Product: Commodities Credit Equity FX and Multi-Assets - Best Corporate Treasury Sales and Structuring Team Best FX Bank for Retail Clients Best Bond House in Thailand Best Cash Management Bank Best Private Bank - Best Sustainable Bank Best Private Bank for Digital PM Marketing & Communication - Asia Thailand Domestic Cash Management BANKING&FINANCE Bank of the Year -Thailand Domestic COVID Management Initiative of the Year Winner: Best Digital Bank for CX - Thailand (LINE BK) Winner: Best Fintech for Digital CX-Alternative Wealth Management (FinVest) Winner: Best Digital Bank - Thailand (LINE BK Powerd by KBank) Winner: Outstanding Omni-channel Integration by a Retail Bank (K Check ID) Highly Acclaimed: Best CX Business Model - Winner: Best Retail Bank - Thailand Highly Acclaimed: Best Digital CX Partner/Vendor (LINE BK) Winner: Outstanding Innovation in Digital CX - Investment Product/Service Winner: Outstanding Innovation in Digital CX - Platform/Website Human Resources Online Excellence in Leadership Development - Excellence in Innovative Use of HR Tech - Winner: Best Private Bank Thailand - Highly Acclaimed: Best Private Bank for client Experience - Retail Outward Remittance Infrastructure Thailand IDC Future Enterprise of The Year IDC Thailand Best in Future of Digital Infrastructure - Thailand Best in Future of Industry Ecosystem -Regional IDC Future Enterprise of the year The Banker Best Private Bank in Thailand Capgemini Efma Winner: Bank + NewTech category (LINE BK) Asia Bankers Club The Best Office Architecture Thailand 2021-2022 (KBTG) Note: CX Customer Experience REFINITIV - Best OIS Data Contributor 2020 α Si ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2022 - Top Investment Houses in Asian Local Currency Bond Best IPO - Top Arranger - Investors' Choice for Primary Issues Corporate Bonds (THB, Rank1) Top Arranger - Investors' Choice for Primary Issues, Government Bonds (THB, Rank1) Top Sellside Firm in the Secondary Market, Government Bonds (THB, Rank1) Top Sellside Firm in the Secondary Market, Corporate Bonds (THB, Rank3) -Triple A Best Private Bank and Triple A Best Private Bank - HNWIS Best Retail Bank for Digital CX - Thailand Best Private Bank for Digital CX - Thailand - Best Digital CX in Banking - Social Channels (KASIKORN LINE) CDP Leadership Level (CDP A List) - Outstanding Interactive Chatbot Service by a Retail Bank - Best Bond Deal for Retail Investors in Southeast Asia 2022 Best Private Bank for Digital - Best Retail Bank - Thailand Best Bond House in Thailand - Best Local Currency Bond Deal of the Year (Thailand) 2022 PUM - Best Sustainability-Linked Transaction of the Year 2022 Best Retail Bank in Thailand THE ASIAN BANKER HETAIL BAITKEN - Best Chatbot / Voice Banking Initiative Application in Thailand - Best SME Bank in Thailand Best Strategic Partnership - Best In-Person (or virtual) Customer Event - Most Dynamic Third-Party Collaboration Marketing & Communication, Asia PRIVATE BANKER Winner Best Bank for INTERNATIONAL Sustainability and ESG Leadership TCCTA Best Contact Center of the Year The Contact Contor Trade A - Highly Commended- Best App for Customer Experience Highly Commended- Best Content Marketing Program Highly Commended- Excellence in SME Banking IDC Future Enterprise of the Year MORNINGSTAR Best Fund House - Domestic Fixed Income (KAsset) - Highly Commended- Excellence in Omni-Channel Integration (K CHECK ID) - Highly Commended- Trailblazing Use of Al or Machine Learning in Financial Services (Digital Commercial Loan for Shopee project) - Highly Commended- Trailblazing Use of Al or Machine Learning in Financial Services (KASIKORN LINE) - Highly Commended- Best Use of Big Data in Customer Strategy (KASIKORN LINE) - Highly Commended- Excellence in Loan Origination Process (KASIKORN LINE) ASIAN PRIVATE BANKER Best for Mass Affluence/HNW in Thailand Business+ - Product of the Year: Premium Health Insurance Product for Elite Health Insurance - Product of the Year: Lump sum Health Insurance Product for Delight Health Insurance HR Asia - Best Companies to Work for in Asia-Thailand region - HR Leader of the Year (Gold Level) - Excellence in HR Change Management (Gold Level) - Excellence in Workforce Flexibility (Gold Level) from the "Work That FITS" project BANKING & FINANCE Mobile Banking & Payment Initiative of the Year - Thailand - Strategic Partnership of the Year - Thailand - Thailand Domestic Cash Management Bank of the Year IDZ Design Center Berlin International UX Design Awards in the category of Product for MAKE by KBank Red Dot Award: Brands & Communication Design in the category of Interface & User Experience Design reddot (for Mobile User Interfaces) for Khun Thong social chatbot บริการทุกระดับประทับใจ Human Resources Employee Experience Award in the category of Most Innovative and Sustainable Office Design 117 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Banking System and Regulations Update บริการทุกระดับประทับใจ 118#60K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Commercial Banks and Specialized Financial Institutions (SFIs) Market Share (% of Total Loans) Market Share (% of Total Deposits) 6 SFIs Bt Billion 24,000- ออมสิน 20,000 17,004 17,765 18,869 19,358 20,301 21,672 22,217 Bt Billion 24,000 20,936 21,880 22,801 20,000 16,843 17,707 18,463 19,178 EXIM 16,000 30.4% 30.2% 30.4% 30.4% 29.9% 30.0% 16,000 26.8% 26.5% 26.7% 26.3% 29.9% 26.8% 27.0% 12,000 26.7% 12,000 8,000 8,000 13 Commercial Banks* 4,000 Bangkok Bank พ ธนาคารกรุงไทย KRUNGTHAL BANK ธนาคารกสิกรไทย KASIKDENBANK 0 2016 70.1% 70.1% 70.0% 69.6% 69.8% 69.6% 69.6% 2017 2018 2019 2020 2021 Nov-22 ■SFIs Commercial Banks 4,000 0 73.3% 73.2% 73.0% 73.2% 73.5% 73.3% 73.7% 2016 2017 2018 2019 2020 2021 Nov-22 SFIs Commercial Banks SCB ไทยพาณิช Մ6 Օ Net Loans Bt Billion 16,000 Deposits 14,000 12,579 12,000 10,470 10,602 11,061 11,633 11,859 10,000 22.8% 22.9% 8,000 CIMB LH BANK KIATNAKIN BANK 6,000 I ICBC Standard Chartered 4,000 2,000 0 *The integration of TMB Bank and Thanachartbank was completed in Jul-21. 22.8% 11.3% 12.3% 14.6% 15.0% 18.1% 16.4% 16.4% 16.8% 16.8% 17.5% 17.5% 2015 2016 2017 22.1% 22.7% 12.5% 15.0% 13,258 13,626 11.2% 11.3% 21.9% 10.0% 9.9% 12.5% 12.4% Bt Billion 18,000 15,632 Other ttb BAY 16.000 14,472 15,032 Other 12.8% 15.8% 16.4% 13.6% 12.9% 15.1% 15.4% 15.7% 15.8% 15.5% 16.1% 16.4% 16.7% 16.8% KBank ■ KTB 16.9% 18.1% 18.2% ■BBL 15.1% 15.3% 15.1% SCB 4,000 14,000 12,000 10,000 21.2% 20.6% 9.4% 9.7% 8,000 15.3% 6,000 19.1% 17.4% 18.6% 11,196 11,359 12,099 12,578 13,057 10.5% 20.2% 8.9% 10.7% 8.9% ttb J 20.6% 10.9% 11.3% 21.5% 21.5% BAY 11.7% 11.8% 12.6% 11.9% 16.2% 17.2% 17.1% 17.4% 16.8% 16.9% 16.3% 16.3% 2,000 I 2018 2019 2020 2021 11M22 0 --------- 15.8% 15.5% 15.8% 16.2% 17.1% 17.7% 17.2% 18.2% 18.6% 18.0% 17.7% 16.8% 17.8% 17.3% 17.1% 16.5% 16.8% 16.4% 16.3% 2015 2017 2016 2020 2021 2018 2019 11M22 15.8% ■KBank ■ KTB 17.0% 17.4% 17.7% 16.5% ■BBL 17.6% SCB LL Note: 6 SFIs include Government Saving Bank (GSB), Government Housing Bank (GHB), Export-Import Bank of Thailand (EXIM Bank), Bank for Agriculture and Agricultural Co-operatives (BAAC), Small and Medium Enterprise Development Bank of Thailand (SME Bank), and Islamic Bank of Thailand (IBank) บริการทุกระดับประทับใจ K KASIKORNTHAI Thailand's Digital Readiness: Number of Users ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ High adoption of digital lifestyle in Thai market; high penetration in smart devices and internet users in preparation toward a cashless society (Mobile Banking & e-Money) 160.7% Penetration 57.9% Mobile Internet 1) (Mobile internet numbers) Penetration Broadband Internet 1) (No. of households using internet via broadband) 80.1% Penetration Social Media 2) (No. of Facebook users) พร้อมเพย์ 73.0 Prompt Pay Million PromptPay 4) 151.6% Penetration 63.9% Penetration (Total registration) Mobile Banking 5) (No. of accounts) Internet Banking 5) (No. of accounts) 119 22.9 billion transactions (+38.8%, YoY) Bt423.5trn (+12.2%, YoY) Thailand e-Payment ³) (Volume and Value) 195.2% Penetration e-Money 5) (No. of accounts/ cards) Source: The Bank of Thailand (BOT), National Statistical Office of Thailand (NSO), Thai Banker Association (TBA), Ministry of Interior (MOI), wearesocial and KResearch Notes: Denominator for all penetration ratio is number of population age six and above as of December 2021. Denominator for fixed internet penetration is number of household. 1) As of Sep-22, 2) As of Oct-22, 3) Jan-Oct-22, 4) As of Nov-22, 5) As of Oct-22 บริการทุกระดับประทับใจ 120#61K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Financial Sector Master Plan (FSMP) Implementation Stages FSMP I (Y2004-2009) ■ Increase efficiency of the financial institutions system - 'One Presence' policy - Expand scope of business: 'Universal Banking' - New licenses for retail banks and foreign bank subsidiaries ■ Promote financial inclusion - Strengthen financial institutions (Fls) by promoting voluntary mergers ■ Protect customers Source: BOT and KResearch FSMP II (Y2010-2014) Looking forward to liberalization Reducing system-wide operating costs ■ Streamlining regulations ■Tackling remaining NPLs and NPAs Promoting competition and access to financial services ■ Promote competition ■ Promote financial access ☐ Strengthening financial infrastructure ■ Promote development of financial products that help support risk management ■ Enhance information systems for risk management ■ Push for draft/review of necessary financial laws to support risk management and an expedited resolution to NPLs ■ Promote information technology utilization ■ Develop human resources in the financial sector FSMP III (Y2016-2020) competitive, inclusive, connected, and sustainable 1) Promote electronic financial and payment services, as well as enhance efficiency of the financial system ■ Promote the adoption of digital banking & electronic payment services in the government, business, and retail sectors ▪ Enhance operational efficiency of financial institutions and other service providers ■ Evaluate future financial landscape to promote operational efficiency of financial institutions and other service providers 2) Support regional trade and investment linkages ■ Facilitating and reducing obstacles for banks' international expansion, including ■ The establishment of Qualified ASEAN Bank (QAB) ■ The development of cross-border financial infrastructures ■ The creation of suitable financial environments among neighboring countries to foster international trade and investment in the GMS 3) Promote financial access ■ For households: encouraging development of financial products and services appropriate for changing customer demands ▪ For SMEs: improving necessary SME database within the financial institution system and supporting credit extension to SMEs ▪ For Corporate: promoting and facilitating suitable environment for private sector's raising of capital 4) Develop relevant infrastructure (Enablers) ■ Developing key infrastructures in the financial system ■ Strengthening regulations and supervision in line with international standards to ensure stability of the overall financial system Note: There are four types of Commercial banks in Thailand; Full service banks; Foreign bank branches; Retail banks; and Subsidiaries GMS = Greater Mekong Subregion = Cambodia, China, Lao PDR, Myanmar, Thailand, and Vietnam บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT Consultation Paper: Repositioning Thailand's Financial Sector Digital Technology Leveraging #on Technology# and Data to Drive #nnovation# 3 Opens: - Open Competition - Open Infrastructure - Open Data# Thai banks have been ready for more open competition, based on a level playing field approach. Sustainability Managing #Transition #owards Sustainability Setting up data standard & disclosure requirements for financial institution's environment-related activities Tackling Thai households' indebtedness via both demand (consumers) and supply (loan providers) sides ✓ Many initiatives, including open infrastructure and open data, require amendments of laws and regulations, as well as cooperation from other authorities. ✓ More precise impact assessment is pending a clearer plan and details of the paper. Source: BOT Consultation Paper, KResearch • • . Resiliency Shifting #from #Stability #to Resiliency Players will be regulated in accordance with their risk profiles (risk proportionality) Burdensome regulations will be revised for greater flexibility While the BOT does not wish to see digital assets adopted as Means of Payment, it does not rule out those with proven stability and economic value Nonbank Financial Institutions will be evaluated and regulated according to their size and impact on the economy & financial system # บริการทุกระดับประทับใจ 121 122#62K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Updates on the Deposit Protection Agency (DPA) DPA Objectives and Missions Enhanced understanding of the deposit protection scheme ■Close cooperation with related authorities to maintain stability of the financial institution system ■Establishment of an appropriate system for premium collection and sound management of the Deposit Protection Fund ■Development of an effective information system to ensure fairness of the deposit protection scheme, with accurate and rapid reimbursement ■Management according to Good Governance Principles and in compliance with international standards established by the International Association of Deposit Insurers Amount of Insured Deposits ■Insured deposits include deposits and accrued interest denominated in Thai Baht accounts, excluding non- resident Thai Baht accounts Blanket guarantee will be gradually phased-out to a limited coverage of Bt1mn per depositor per institution. Until 2011, Thai banks paid 0.40% per year of the daily average deposit amount (paid in June and December), excluding deposits in foreign currencies and deposits from financial institutions not insured by the DPA Since January 27, 2012, the contribution rate has increased from 0.40% to 0.47%, with 0.46% being the contribution to the FIDF, and 0.01% being paid to the DPA. The FIDF fee will temporarily reduce to 0.23% until the end of 2022* ■Royal Decree on an extension of deposit protection coverage was announced in the Royal Gazette on September 24, 2012 The Cabinet approved a one-year extension of deposit protection up to a maximum of Bt5mn. From August 11, 2021, the protection covers deposits up to Bt1mn. Deposit Accounts in Thailand (as of November 2022) Insured Deposit Under the amending the Deposit Protection Agency Act 11 August 2012-10 August 2015 11 August 2015-10 August 2016 11 August 2016 - 10 August 2018 11 August 2018 10 August 2019 11 August 2019 - 10 August 2021 11 August 2021, onwards Up to Bt50mn Up to Bt25mn Up to Bt15mn Up to Bt10mn Up to Bt5mn Up to Bt1mn Deposits # of Accounts % Amount (Bt mn) % Less than Bt1mn More than Bt1mn, but less than Bt10mn More than Bt10mn, but less than Bt25mn More than Bt25mn, but less than Bt50mn More than Bt50mn Total 118,890,918 98.39 3,332,137 1,783,394 1.48 4,372,387 103,401 0.09 1,536,396 31,835 0.03 1,108,968 25,790 0.02 5,569,501 20.93 27.47 9.65 6.97 34.99 120,835,338 100 15,919,389 100 Source: Deposit Protection Agency (DPA), the Bank of Thailand, KBank and KResearch บริการทุกระดับประทับใจ * According to the BOT announcement in the Royal Gazette, per the authority of the emergency decree dated April 7, 2020, financial institutions are required to pay 0.23% of the average deposit amount, B/Es, debt instrument (excluding the amount counted as capital), borrowings, and securities transactions under repurchase agreements, during January 2020 to December 2022 123 K KASIKORNTHAI Regulations Update Capital (Basel III) ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Pillar2: BOT revised Pillar2 regulation to enhance risk management and capital adequacy assessment as well as emphasize ESG risk management. The revision become effective from 1 Jan 2022 onwards ■BCBS finalized new requirements on risk weighted asset (RWA) calculations including credit risk, operational risk, and CVA risk. The main objectives of the revision are to reduce variability in RWA across banks and jurisdictions and to balance simplicity and risk sensitivity of capital requirements Guidelines for supervision of financial groups of commercial banks related to digital asset business ■Remove the investment ceiling (3% of the capital of Thai banks) for FinTech business, as commercial banks have more experience investing in FinTech business, and regulators have guidelines to manage risks ■Allow subsidiaries of Thai banks to invest in companies related to Digital Assets (DA) business not greater than 3% of their capital, limiting new risks; DA companies with good governance, supervision of risks, and protection of customers are exempted from this investment ceiling ■Capital treatment: full deduction of DA holding exposure to CET1 Financial Sector Master Plan III (FSMP III) 22 Mar 2016: Cabinet approved FSMP III (2016-2020), with aims to establish strategic framework for continuous financial sector development and ensure challenges arising from the changing environment will be effectively managed Overall: FSMP III comprises four main initiatives: 1) Promote electronic financial and payment services as well as enhance efficiency of Thai financial system; 2) Support regional trade and investment linkages; 3) Promote financial access; and 4) Develop relevant infrastructure ■1Q17: BOT adopted the 'regulatory sandbox' which allowed regulatory flexibilities to be granted to financial institutions and FinTech companies to experiment with FinTech businesses with plans to grant a new license for P2P lending players or digital personal loan operators As of May-2022, BOT granted licenses for 9 digital personal loan operators ➤Impacts on Thai banks: Move toward further liberalization and digitalization, along with enhanced competition from FinTech and non-bank companies ➤Impacts on KBank: Ability to maintain competitiveness over both existing and new players, helped by an effective customer-centric strategy and preparation for a changing environment Thai and International Financial Reporting Standards (TFRSS / IFRSS) ■Year 2020 onwards: Timeframe was specified by Thailand Federation of Accounting Professions (TFAC); TFRS 9 (Financial Instruments) and TFRS 16 (Leases) became effective in 2020; TFRS 4 (Insurance Contracts) will be changed to TFRS 17 and will be effective in 2025 ➤ Expected impacts on Thai banks: For TFRS 9, expected credit loss is a significant issue due to economic uncertainty from COVID-19 outbreak and Thai systemic risk. For TFRS 17, it will be more transparent and easier to compare financial performance from insurance business ➤ Expected impacts on KBank: For TFRS 9, Bank's expected credit loss is still based on prudence basis following both TFRS 9 and BOT guidelines. Impacts resulting from TFRS 17 still under investigation Note: D-SIBS = Domestic Systemically Important Banks CVA Credit Valuation Adjustment, Source: The Bank of Thailand and KResearch บริการทุกระดับประทับใจ 124#63Tier 1 capital Tier 2 capital K KASIKORNTHAI Basel III: BOT Minimum Capital Requirement ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Transitional Arrangement for Capital Requirement All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 5.125% (4.5%+0.625%) 5.75% 6.375% 7.5% 8.0% 8.0% 8.0% 8.0% 8.0% (4.5%+1.25%) (4.5% +1.875%) (4.5% +2.5% +0.5%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) Tier 1: Min. Tier 1 Ratio 6.625% (after conservation buffer and D-SIBS buffer) (6.0%+0.625%) 7.25% (6.0%+1.25%) 7.875% (6.0%+1.875%) 9.0% (6.0% +2.5% +0.5%) 9.5% CAR: Min. Total Capital Ratio (after conservation buffer and D-SIBS buffer) 9.125% (8.5%+0.625%) 9.75% (8.5%+1.25%) 10.375% (8.5%+1.875%) 11.5% (8.5%+2.5% +0.5%) 12.0% (8.5% +2.5% +1%) 12.0% (8.5% +2.5% +1%) (6.0% +2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5% +2.5% +1%) 12.0% (8.5%+2.5% +1%) Countercyclical Buffer 0.0-2.5% 0.0-2.5% (Subject to the BOT consideration)*** Leverage Ratio Parallel run period (Tier 1/Exposure) ≥ 3% Tentative effective date Liquidity Coverage Ratio (LCR)**** LCR ≥ 60% LCR ≥ 70% LCR ≥ 80% LCR ≥ 90% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% (Liquid Assets/Net Cash Outflows within 30 days) ≥ 100% Net Stable Funding Ratio (NSFR) (Available Stable Funding / Required Stable Funding) ≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR ≥ 100% Note: * Conservation Buffer is to ensure adequate capital to absorb losses during periods of financial and economic stress. ** D-SIBS (Domestic Systemically Important Banks) Buffer is to limit negative impact associated with the distress or failure of banks on domestic financial system and economy. *** In periods of excess aggregate credit growth, BOT may require banks to set a Countercyclical Buffer up to 2.5% to achieve the broader macro-prudential goal of protecting the banking sector. **** KBank's Average Liquidity Coverage Ratio (LCR) are 166%, 174% and 158% as of June 2022, December 2021 and June 2021, respectively; more details can be found on Basel III - Pillar 3 Disclosures Report Remark: Banks with a capital ratio less than the required regulatory buffers will face various degrees of constraint on earning distribution Source: The Bank of Thailand บริการทุกระดับประทับใจ K KASIKORNTHAI Capital Definition Change (Consolidated) Basel II Tier 1 • • Issued and paid-up share capital Premium on ordinary shares Common Equity Tier 1 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Basel III • Issued and paid-up share capital* . Premium on ordinary shares Legal reserve and Retained earnings • Hybrid Tier 1 (<15% of total Tier 1) • Minority interest, Preferred stock Deduction of Tier 1 . Goodwill, Treasury stock, Deferred tax asset Investment in insurance • (50% Tier 1 and 50% Tier 2) 2 • Legal reserve and Retained earnings 1 ⚫ Other comprehensive income (OCI) e.g. surplus on bond and equity FVTOCI (100%), surplus on land & premises (100%) Additional Tier 1 • Hybrid Tier 1 with loss absorbency feature • Minority interest, Preferred stock Deduction of Common Equity Tier 1 . Goodwill, Deferred tax asset Intangible assets • Investment in insurance (Threshold Deduction) -Amount ≤ 10% of CET1, %RW = 250% (KBank's Case) - Amount > 10% of CET1, deduct CET1 Long-term sub-debt with loss absorbency feature Long-term subordinated debt 3 • Hybrid Tier 1 (exceeds from Tier 1 limit) • General Provision • General Provision • Surplus on AFS equity (45%) * 1 Net Treasury Stock • Surplus on land & premises (70% and 50%) บริการทุกระดับประทับใจ 126 125#64K KASIKORNTHAI TFRS and IFRS Implementation* 2013 2015 2016 2020 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2022 2025 TAS 21: Effects of Changes in Foreign Exchange Rates Translate 'Functional Currency' to 'Presentation Currency' TFRS 8: Operating Segments Disclose operating results for each key segment TFRS 13: Fair value TFRS 4: Insurance Contracts TFRS 16 (Leases) Measurement Clear required factors and disclosure about fair valuation ➤ Measure insurance liability based on cash flow estimation ➤ Additional disclosure regarding risk exposure There is a single, on-balance sheet accounting model for lessee that is similar to current finance lease accounting. TFRS 9 (IAS 39), TFRS 7 & TAS 32: Financial Instruments Thai banks have implemented a new provisioning rule under IAS 39, since December 2006 ➤ Unquoted equities at cost to be faired value and not able to realize capital gain/loss in profit and loss if they are faired valued through OCI ➤ Interest revenue of lending portfolio will be recognized per effective interest rate ➤ Investment in property fund, REIT, infrastructure fund and infrastructure trust established in Thailand will be classified as equity instrument. (Refer to announcement from TFAC dated 25 June 2020) TFRS 17: Insurance Contracts Insurance revenue will be based on margin, not gross premium received Expected day one loss is immediately realized while expected gain is deferred over coverage period TFRS 9 Amendments from Interest Rate Reform ➤ Replacement of IBOR with new benchmark rate is considered as continuation of existing contract and/or hedge strategies where changing rate is reflected in new EIR or hedge ineffectiveness in profit or loss. Note: TAS Thai Accounting Standard; TFRS = Thai Financial Reporting Standard; TFRIC = Thai Financial Reporting Interpretations Committee OCI Other Comprehensive Income Customer loyalty program concept of income deferral for reward credit has been adopted through IFRS15 since 2019 with no significant impact. No specific accounting guideline for digital assets has been enforced; but encourage to apply from existing relevant TFRS depends on terms and condition of digital assets. * Only financial and disclosure impact to Thai Banks บริการทุกระดับประทับใจ K KASIKORNTHAI Government Policy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 127 บริการทุกระดับประทับใจ 128#65K KASIKORNTHAI Sources and Uses of Public Funds FY2023 Budget ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK FY2023 budget act was approved in August 2022 and was published in the Royal Thai Gazette on September 19, 2022. Budget Planning Tax Revenue + Non-Tax Revenue (Bt2.49trn) + Borrowing under FY2023 Budget Act (Bt695bn) FY2023 Budget (Bt3.18trn) = General Budget (Bt2.39trn or 75%) + Investment Budget (Bt0.69trn or 22%) + Principal Repayments (Bt0.10trn or 3%) Budget Execution Budget Disbursement (100% target disbursement rate + carry-over) General Administration (Bt1.11trn or 35%) ■ Defense ■ Homeland security " Economic Affairs (Bt762bn or 24%) ■ Development of the country's competiveness ■ Subsidize SOES (e.g. Infrastructure project, free bus and train service policy) ■Infrastructure/Agricultural Development Social and Community Services (Bt1.31trn or 41%) ■ Education ■ Universal Healthcare Notes: Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year. บริการทุกระดับประทับใจ K KASIKORNTHAI Government Fiscal Budget 1400 1200 1000 540 360 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■Thai parliament approved FY2023 budget worth Bt3.18trn, with a deficit of Bt695bn ■ Implementation of FY2023 budget effective October, 2022 600 الاس 700 FY2022 609 FY2021 800 600 400 390 450 450 469 200 0 163 FY2017 100 FY2018 FY2019 FY2020 Budget Deficit 695 FY2023 Economic Policies ■2022 Budget Act ■2023 Budget Act Extra-Budget Borrowing Key Points ■FY2022 budget at Bt3.10trn with a deficit of Bt700bn ■FY2023 budget at Bt3.18trn with a deficit of Bt695bn Implementation Process FY2022 ■ Effective date: October 1, 2021 FY2023 ■ Effective date: October 1, 2022 Possible Impacts/ Expected Budget ■Government spending will help maintain economic momentum ■Fiscal sustainability to remain manageable in near-term; however, continued debt creation, both from budget deficit and other borrowings, may impact long-term fiscal sustainability Note: Thai government's fiscal year (FY) begins on October 1 and ends on September 30 of following year Sources: The Ministry of Finance and KResearch (as of October 2022) บริการทุกระดับประทับใจ 129 130#66K KASIKORNTHAI Public Debt to GDP and Fiscal Budget million Baht Public Debt % (%) 70 100 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Budget Disbursement Rate 11.000 10,500 10,000 9,500 9,000 8,500 8,000 7,500 7,000 6,500 6,000 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 % to GDP (rhs) Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Aug-22 Nov-22 Public Debt (Ihs) 55 65 60 60 90 80 70 55 60 55 45.3 50 37.7 50 50 40 30.0 22.7 30 15.0 FY 2023 45 45 20 FY 2022 10 FY 2021 40 40 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep ■ Public debt to GDP ratio rose to 61.3% in January 2023. However, it is still under the 70% limit set under the fiscal sustainability framework ■Thai government raised the ceiling of the public debt-to-GDP ratio from 60% to 70%. The public debt to GDP is expected to rise to 60.43% in FY2023 Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO) Total Budget Bt3.18trn FY23 Budget FY23 target Bt3.18trn (100%) 5M FY23 actual Unused FY23 Budget B1.44trn (45%) Bt1.74rn (55%) Bt2.52trn Bt1.26trn - Investment Budget Bt0.66trn (100%) Bt0.66trn (100%) (50%) Bt0.18rn Bt1.26trn (50%) Bt0.48trn (28%) (72%) - General Budget Bt2.52trn ■Government budget disbursement rate for 5MFY2023 is 45.3%, up 2.8% from 42.5% in 5MFY2022 บริการทุกระดับประทับใจ K KASIKORNTHAI Relief Measures for COVID-19 Impacts ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MOF Package Size Measures BOT Package Size Bt 400 billion Provide liquidity for bond mutual funds Bt 1.0 triillion Phase 1 Measures - Soft loans worth Bt150 billion - Interest cuts and delayed debt payments (SFIs) - Reducing electricity and water bills Phase 2 - Cash handouts - Emergency loans - Tax benefits Phase 3 - Implementing health-related plans and giving financial aid to affected people Economic and social rehabilitation Bt 120 billion Soft loans and asset warehousing programme Bt 500 billion Bt 1.0 trillion Corporate Bond Liquidity Stabilization Fund (BSF) Bt1.5 trillion or 9.8% of 2020 GDP Note: SFIs Specialized Financial Institutions Source: MOF, BOT and KResearch, as of July 2021 Bt 400 billion Bt1.9 trillion or 12.2% of 2020 GDP บริการทุกระดับประทับใจ 131 132#67K KASIKORNTHAI 20-Year National Strategy (2017-2036) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (As defined in Section 65 of the Constitution of the Kingdom of Thailand and passed by the NLA in June 2017) To achieve the vision "Security, Prosperity, Sustainability", to become a high-income country, to improve quality of life, to generate high income, to escape the middle income trap, and to ensure well-being for all Thais "Security" Security Key Strategies "Prosperity" 2 Competitiveness enhancement Broadening Opportunity and Equality "Sustainability" Development and Empowerment Human Capital in Society 6 3 5 Environmentally- Friendly growth Reforming Government Administration " The Goals High income country: 15,000 USD per capita by 2036 (2016 income per capita = 5,901 USD) Economic growth around 5% per year (4-5% under 12th NESDB Social and Economic Development Plan and 5% for the next three NESDB 5-Year Plans) People of all ages healthy and with lifelong learning opportunities Target Gini: <= 0.36 (inequality measurement: lower figure indicates better income distribution) Forest area as percentage of total land area more than 40% Fully implement Digital Government Services Enhance Corruption Perceptions Index beyond 50Plus (the lower tier of least corrupt countries) National Strategy Committee: Chairman is the Prime Minister; Secretary is NESDB Secretary-General 34 committee members First 17 committee members are high-ranking state officials and leading industry experts such as the Prime Minister, members of the top brass, National Police Chief, Permanent Secretary for Defense, President of the House of Representatives, Chairman of the Federation of Thai Industries, President of the National Farmers Council, President of the Thai Bankers' Association, Chairman of the Thai Chamber of Commerce, etc. Second 17 Committee members are experts from various fields 2017 2022 T Aug17: Cabinet appointed committees. Jun17: NLA passed the law Jun18: Cabinet endorsed the plan Jul18: NLA approved the plan 2027 2032 The National Economic and Social Development Plan (5-year plan) aligned with the 20-year National Strategy The 12th National Economic and Social Development Plan (2017-2021) The 13th National Economic and Social The 14th National Economic and Social Development Plan (2022-2026) Development Plan (2027-2031) บริการทุกระดับประทับใจ 2036 The 15th National Economic and Social Development Plan (2032-2036) 133 K KASIKORNTHAI Government Policy: Long-term Policies ■ 20-Year National Strategy: To achieve the vision "Security, Prosperity, Sustainability," to become a high-income country, to improve quality of life, to generate high income, to escape the middle-income trap, and to ensure well-being for all Thais ■ Transport Infrastructure Development Plan: ➤ Project will reduce logistical costs, increase transportation speed of goods and people, as well as connect Thailand to neighbors along the East-West and North-South Economic Corridors ➤ Public Transport Infrastructure Investment 2015 to 2022: worth Bt2.59trn ■ Eastern Economic Corridor (EEC): Area for facilitating and attracting investment in 10 innovative target industries to transform Thailand into Thailand 4.0 ■ Digital Economy: ➤ NBTC awarded mobile licenses in various spectrums and launched 5G ➤ Government plans to adapt National Digital ID to speed up the process towards digital economy ■ BOI Measures for Supporting Private Investment: Tax and non-tax incentive measures to support private investment, such as Special Economic Zones (SEZS) (10 provinces, including Tak, Mukdahan, Sa Kaeo, Songkhla, Trat, Chiang Rai, Kanchanaburi, Nong Khai, Nakhon Phanom, and Narathiwat) ■Ten targeted industries as new engines of growth: Next Generation Automotive, Smart Electronics, Affluent Medical and Wellness Tourism, Agriculture and Biotechnology, and Food for the Future; New S-Curve (for new growth) consists of Robotics, Aviation and Logistics, Biofuels and Biochemicals, Digital, and Medical Hub ■Additional Incentives: Biotechnology, Nanotechnology, Advanced Materials Technology, and Digital Technology ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■ Promote Establishment of International Headquarters (IHQ) and an International Trading Center (ITC) in Thailand: Help Thailand become a key trading nation in the region ■ ASEAN Economic Community (AEC): Since December 2015, ASEAN has transformed into the "ASEAN Economic Community," with free movement of goods, services, investment, and skilled labour, and a freer flow of capital; Strategic measures under the five characteristics in the AEC Blueprint 2025 will be operationalised through sectoral work plans and their implementation and monitored through the AEC 2025 Monitoring and Evaluation Framework ■Free Trade Area (FTA): Already signed FTA with ASEAN+3 (China, Japan, and Korea), India, Australia, New Zealand, Peru, Chile; In progress with Canada, European Union (EU), the Regional Comprehensive Economic Partnership (RCEP), and Comprehensive and Progressive Agreement of Trans-Pacific Partnership (CPATP) ■ Age Society: Mandatory retirement age for government and state enterprise officials will be extended from 60 to 63, effective in 2024 ■ Energy Policy: Reform petroleum concessions and energy price structures, including an LPG subsidy ■Tax Reform: Reform tax collection, generate sufficient revenue for the government, and boost competitiveness for local businesses, especially SMEs ■Constitution: National assembly seeks to amend the constitution section- by-section บริการทุกระดับประทับใจ Sources: Newspaper and KResearch (as of April 2021) 134#68K KASIKORNTHAI Government Policy: Short-term Policies ■■Government Budget: ➤ Fiscal budget deficit in FY2023: plans for Bt695bn deficit to provide additional supports to stimulate Thai economy after COVID-19 outbreak ■■■ Short-term Stimuli: ➤ Welfare Card: Give Bt200-300 a month to each welfare smart card (14.5 million people) for purchase of necessary goods for those earning less than Bt100,000 annually; give Bt500 wallets to help with transportation costs *Extra Bt200 grant in January 2023 ➤ Thailand Plus Package: attract foreign investment, especially to expedite investments from companies seeking to relocate as a result of ongoing trade war Cash handout for workers not covered by SSF: Bt5,000 monthly payments for 3 months to informal workers affected by COVID-19 (April-June 2020) ➤ Supporting tourism: Subsidies for domestic tourists (Moral Support & We Travel Together campaigns) (July 2020 to April 2021); "Special Tourist Visa" for long- staying visitors (90-day stay in country, which can be extended twice, each for an additional 90 days. Visa costs Bt2,000 per 90-day extension) ➤ Property stimulus package: Property transfer fees reduced from 2% to 0.01% and mortgage fees reduced from 1.0% to 0.01% for buying condominium units priced at not over Bt3mn (Jan - Dec 2022) ▸ Measures to help farmers: Price insurance for agricultural plants such as rice, rubber, oil palm, cassava, and corn (Bt98bn for 2022 government budget) Measures to help flood victims 2022: Package of 14 tax measures including Bt100,000 for house repairs and Bt30,000 for car maintenance to be deducted from taxable income ■Short-term Stimuli (continued): ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ➤ Projects to boost domestic consumption: 1) "Half-Half" scheme: a co-payment for food and general products subsidizing half of the purchase price - Phase 1&2: Bt3,500 to 15 million people (October 2020 - March 2021) - Phase 3: Bt4,500 to 31 million people (July - December 2021) - Phase 4: Bt1,200 to 29 million people (March-April 2022) - Phase 5 : Bt800 to 26.5 million people (September-October 2022) 2) "Shop Dee Mee Kuen" - a tax deduction for spending, 2.1) 2022: up to Bt30,000 (1 January - 15 Feb 2022) 2.2) 2023: up to Bt40,000 (1 January - 15 Feb 2023) 3) Purchasing power scheme of 3.1) State card holders: Bt400 to 13.34 million people (September - October 2022) 3.2) People classified as needing special help: Bt400 to 2.23 million people (September October 2022) Projects to boost travel: 1) We Travel Together: 40% of hotel expenses, or up to Bt3,000 per room per night, and food coupons of up to Bt600 a day (4th phase: July-October 2022) 2) Tour Travel Thai campaigns: 40% of the tour package price, or up to Bt5,000 per person Measures to help people with rising living costs: 1) State welfare cardholders: Bt100 subsidy for cooking gas and up to Bt100 for water bill (October 2022 - April 2023) 2) Vendors with state welfare cards Bt100 per 3 months subsidy for cooking gas (January-March 2023) 3) Vulnerable groups (using electricity below 500 units per month): bill subsidy Sources: Newspaper and KResearch (as of January 2023) บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Ongoing Government Measures to Assist Cost of Living Measures Household Assistance Energy Prices 39 37 35 33 31 29 27 Details Train/Bus/Skytrain and Subway Fares: Bt500 monthly allowance for welfare card holders to use for public transportation Necessity Goods: A Bt200* grant per month in welfare card to purchase necessity goods, products intended for education and farming materials from all Blue Flag shops Cooking Gas: A Bt100 discount each quarter in welfare card for purchasing cooking gas Allowances (e-Money): Depending on measure, which can be withdrawed from an ATM, such as Elderly welfare allowance (Bt50-100) and Disable allowance (Bt200) Water and electricity price: Reduce water and electricity bills and refund meter fees Diesel Fuel: ➤ Extend Bt5 per litre excise tax cut for diesel until January 20, 2023 NGV and LPG Price: ➤ Household sector: remain LPG price cap to Bt408/per 15-kilo canister (until January 2023) ➤ FT Rate: Fuel Adjustment Tariff (FT) Rate for electricity is set to increase for business user to Bt190.44 (from 93.43), while fixed for household user at Bt93.43 (January to April 2023) 21 19 Sep-10- May-11- Jan-12- Sep-12- May-13- Jan-14- Sep-14- May-15- Jan-16- Sep-16- May-17- Jan-18- Sep-18- Retail Diesel Price Value-added-tax (VAT) Rate Sep-22- Note: If income exceed Bt30,000 per annum will get Bt 200 Source: The Census and Economic Information Center (CEIC), Electricity Generating Authority of Thailand (EGAT), newspapers complied by KResearch บริการทุกระดับประทับใจ On August 24, 2021, the Government announced the following VAT Rates: ■Maintain the 7% value-added-tax (VAT) rate until September 30, 2023 136 135#69K KASIKORNTHAI Public Transport Infrastructure Investment Type of Projects Source of funds 7. Others 7% 1. High- speed Rails. 33% State Enterprise PPP 22% 12% TFF fund 2% Total projects of "Thailand strategic development of transport infrastructure 2015 to 2022" master plan 6. Air Transport 6% 5. Marine Transport 6% 4. Dual- Track Railways 15% 3. Bangkok and Mass- Transit system 16% 2. Motorway & Roads 17% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Project Detail (Total Budget) LIA 1. High-speed Rails (Bt1,006.7bn) 2. Motorway & Roads (Bt512.3bn) 4. Dual-Track Railways (Bt438.2bn) 5. Marine Transport (Bt187.6bn) Gover Government Budget 29% nment Loan 35% 3. Bangkok and Mass-Transit system (Bt476.7bn) 6. Air Transport (Bt183.5bn) Total Budget Number of projects Total disbursement Total projects 119 Bt3.02trn Type of Projects 6.Marine transport 7.Others 3% 1.High speed 7% rails 24% For 2023, public infrastructure investment is estimated to be B240bn or 1.7% higher than 2022* 5.Dual-truck railways 12% 4.Motorway & Roads 13% 3.Air- transport 17% 2.Bangkok & Mass-transit system 24% Project Detail (Expected disbursement in 2023) 1. High-speed Rails (Bt57.6bn) 4. Motorway & Roads (Bt31.2bn) 2. Bangkok and Mass-Transit system (Bt57.6bn) 5. Dual-Track Railways (Bt28.8bn) 3. Air Transport (Bt40.8bn) 6. Marine Transport (B16.8bn) Expected in 2023 Number of projects Total projects 18 Total disbursement Bt240bn Source: Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022 master plan) and estimated by KResearch (January 2023) Notes PPP Public-Private Partnership, TFF fund Thailand future fund. Total investment may be reduced due to cutting the scope of work, delay in construction, and allocation of state disbursement for COVID-19 relief measures บริการทุกระดับประทับใจ 137 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Projections on Budget Disbursement of Public Transport Infrastructure Investment (Bt bn) 350 324 318 321 297 295 300 278 270 250 236 240 214 200 150 163 129 100 79 84 50 0 Notes: 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 - Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year - Projects that were delayed or terminated by Cabinet are not included - The budget of Bt1.91trn referring "Thailand strategic development of transport infrastructure 2015 to 2022 master plan" are excluded High-speed rails (Bt693.9bn) and Suvarnabhumi airport (Bt79.5bn), but our estimation include both of these projects Source: Office of Transport and Traffic Policy and Planning ( Thailand strategic development of transport infrastructure 2015 to 2022) Note: *KResearch projected as of January 2023 บริการทุกระดับประทับใจ 138#70K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK On-going highlight projects under construction in 2023* Projects under construction Expected completion year Lop Buri-Pak Nam Pho T Bang Yai-Kanchanaburi Motorway Note Motorways/Expressways Rama III Dao Khanong Bang Yai Kanchanaburi (M81) Bang Khun Thian - Ban Phaeo (M82) Bang Bua Thong-Bang Khun Thian (M9) 2023 89% in progress 2024 84% in progress 2025 24% in progress 2026 Mabkabao-Jira Junction Bang-Pa-In-Nakhon Ratchasima Motorway Bangkok Nakhon Ratchasima Laem Chabang deep sea port development phase 3 High speed rails Thailand Chinese (Bangkok - Nakhon Ratchasima) 2027 15% in progress Bangkok-Rayong (3 Airports) 2029 Mass - transit system and commuter rail lines Pink line (Khae Rai-Min Buri) 2023 94% in progress Purple line (Tao Poon-Racha Burana) 2027 4% in progress Map Ta Phut deep sea port phase 3 Dual-Track Railways Lad Prao-Samrong Nakhon Pathom-Hua Hin Hua Hin - Prachuap Khiri Khan FEX Suvarnabhumi Airport (Phase II): Thailand Cultural Center- Min Buri Prachuap Khiri Khan- Chumphon Nakhon Pathom - Hua Hin 2023 96% in progress Lop Buri Pak Nam Pho 2023 75% in progress MabKabao Jira Junction 2023 95% in progress Khae Rai-Min Buri Dual-Track Train Prachuap Khiri Khan - Choom Porn 2023 90% in progress Mass-Transit System and Commuter Train Ban Pai-Nakorn Panom Den Chai-Chiang Rai 2026 2028 High Speed Train Air transport Airport Suvarnabhumi Airport 3rd runway 2023 42% in progress Motorway U-Tapao Airport 2025 Single Rail Transfer Operator Intermodal Facility Marine transport Laem Chabang Phase 3 2025 6% in progress 2026 19% in progress Source: Ministry of Transport and KResearch (January 2023) Notes: Projects that visibly have construction progress on-site or have been stated in official documents that it had been constructed *Only highlight/Mega projects are shown in this presentation Map Ta Phut Phase 3 บริการทุกระดับประทับใจ K KASIKORNTHAI Upcoming Infrastructure Projects TOR Process/ Bidding Process /Land reclamation /Preparing for construction Air Transport: Don Mueang Airport Phrase 3 Motorways: Kratuu-Pathong (Phuket) Mass-Transit System and Commuter Rail Lines: TOR process TOR process Expected to Status start construction Note 2024 2024 Orange line (Bang Khun non - Cultural center) Bidding Process 2023 Expect to delay due to a change in TOR Dark Red line (Rangsit - Thammasat University) Light Red line (Taling Chan - Siriraj) Red line (Taling Chan - Salaya) TOR Process + Land reclamation TOR Process + Land reclamation TOR Process + Land reclamation 2023 2023 2023 Expect to open bidding by H1/23 Projects Preparation for approval by Cabinet/ PPP Process /EIA Process/Feasibility Plan Status High-Speed Rails: Thailand-Chinese F2 (Nakhon Ratchasima - Nong Khai) Bangkok-Rayong (3 Airports) F2 Air Transport: Suvarnabhumi Airport Phase 3 (North building expansion) Suvarnabhumi Airport (East expansion) Motorways: Bang Bua Thong-Bang Khun Thian (M9), Srinakarin-Suvarnabhumi (M7) Rangsit-Bag Pa In (M5) Nakhon Pathom - Cha am (M8) Dual-tracks Railways: Khon Kean-Nhong Kai, Pak Po-Den Chai (*Priorities) Jira-Ubonracha Thani Den Chai-Chaingmai, Choom Porn-Surat Thani, Surat Thani-Song Khla, Had Yai-Padang Besar Mass-Transit System and Commuter Rail Lines: Red line (Bangsue-Phayathai-Makkasan-Huamark) Dark red line (Bangsue-Hua lamphong) Grey line (Watcharapol -Thong Lo) F1 Brown line (Khae Rai-Lam Sali) May be asked for approval by Cabinet in 2022 (Q4) Feasibility plan Expect to open bidding by H1/23 Preparation for approval by Cabinet PPP approved +Preparation for approval by Cabinet EIA process Preparation for approval by Cabinet (H1/23) PPP process Preparation for approval by Cabinet EIA approved EIA process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Upcoming Infrastructure Projects by Areas Denchai-Chiang Rai-Chiang Khong High speed train Bangkok to Chiang Mai Light rail in Chiang Mai Regional airport development (Chiang Mai) Denchai to Chiang Mai Pak Nam Pho to Denchai Khon Kaen to Nong Khai Banpai-Mukdahan-Nakhon Panom Light rail in Khon Kaen Regional airport development (Khon Kaen) Jira to Ubon Ratchathani Light rail in Nakhon Ratchasima (Orange Line (Bang Khun Non to Thailand Cultural Center) Purple Line (Tao Poon to Rat Buran; Dark Red Line (Rangsit to Thammasat University) ITV Rangsit to Bang Pain Bangkok to Mahachai Nakhon Pathom to Cha-am High speed train Bangkok to Hua Hin Red Line (Bang Sue to Hua Mak and Bang Sue to Hua Lamphong) Red Line (Taling Chan to Siriraj and Taling Chan to Salaya) Donmuang Airport Development Phase 3 and Suvamabhumi Airport U-Tapao International airport 139 Regional airport development (Krabi) ☑ Chumphon to Surat Thani Regional Airport (Nakorn Srithammarat) Surat Thani-Hat Yai-Songkhla Dual Track Railway Mass Transit System and Light Rails High Speed Train Katu to Patong in Phuket Airport Light rail in Phuket Regional airport development (Trang) Hat Yai to Padang Besar Motorway/Expressway Port Hat Yai to Malaysian border Preparation for approval by Cabinet Feasibility plan Feasibility plan บริการทุกระดับประทับใจ Source Ministry of Transport and KResearch (January 2023) Notes: Some projects are expected to be delay due to COVID-19 situation 140#71K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Eastern Economic Corridor (EEC) - Three eastern provinces: Chachoengsao, Chon Buri, and Rayong ■ Objectives: To facilitate and attract investment in innovative target industries aimed at achieving "Thailand 4.0", an innovation driven society (the 12 industries are Next-Generation Automotive, Smart Electronics, Medical and Wellness Tourism, Food for the Future, Robotics, Aviation, Agriculture & Biotechnology, Biofuels & Bio Chemicals, Digital, Medical, Defense, and Education & Human Resource Development) ■ Key Development Plan: An expansion of existing transportation facilities, plus new investment in logistics systems to transform the EEC area (13,266 square kilometer) into a regional center for trade, investment, and tourism ■ Approved Investment: Bt1.8 trn (2018-2022) from (1) BOI's approved projects (private sector investment) Bt 1,091 bn (2) infrastructure investment under Public Private Partnership (PPP) Bt 656 bn and (3) government investment from integrated budgeting Bt 95 bn. ■Investment Incentives: EEC privileges corporate income tax (CIT) exemption of up to 13 years and additional 50% CIT reduction for up to five years for some projects; 15-year CIT exemption for qualified projects under Thailand Competitive Fund (R&D investment); a flat tax rate of 17% personal income tax (PIT) for experts/specialists; long-term land leases (up to 99 Years) D Four Core Areas - 15 Crucial Investment Projects* A U-Tapao airport and aircraft maintenance Sattahip commercial seaport Laem Chabang port phase #3 ((COD)) F 'A' Map Ta Phut port phase #3 Chachoengsao Chonburi High-speed rail - east route Double-track railway Highways and motorway Next-generation automotive (EV/AV) Aviation industry, Robotics, Smart electronics 8 9 10 11 ((CO))) Rayong Advanced petrochemical and Bioeconomy Medical hub * 12 Tourism Approved Investment Amount (Bt1.8 trillion 2018-2022) Approved infranstructure investment under PPP Bt 656 bn Government's approved 0 investment Bt 95 bn BOI's approved investment Bt 1,091 bn 13 Global Business Hub / Free Economic Zone 14 New Cities, Inclusive growth 15 Public Utilities Source: The Board of Investment of Thailand (BOI), and The Eastern Economic Corridor Office of Thailand (EECO) presentation and KResearch projected (as of November 2022) บริการทุกระดับประทับใจ 141 K KASIKORNTHAI EEC Progress Projects ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Amount Owner Contract Signed Name of the selected JV Beginning Construction Expected project completion High-Speed Rail Linking 3 Airports Bt224.5bn State Railway of Thailand Oct 2019 Asia Era One Co., Ltd (CP led consortium consisting of CP, Italian Thai, CH. Karnchang, China Railway Construction Corp) 1Q23 2029 U-Tapao Airport and Aviation City Bt290bn Royal Thai Navy Jun 2020 U Tapao International Aviation Co., LTD (Bangkok Airways led Consortium consisting of Bangkok Airways, BTS, Sino-Thai) 1Q23 2025 U-Tapao MRO Bt 8.4bn Royal Thai Navy TBC (Maintenance, Repair Overhaul) To Launch Term of References (TOR) for bidding in June 2022 2025 GPC Nov 2021 Laem Chabang seaport (3rd Phase) Bt114bn Port Authority of Thailand (Gulf Energy Development Pcl + PTT Tank Terminal China Habour) 4Q23 (F Dock) 2025 (for F1 Dock) and C NNC Aug 2020 for F Dock Development (NTL Marine + Nathalin + Zhonggang Construction) for Land reclamation project 2Q21 (Land reclamation) 2029 (for F2 Dock) Bt47.9bn Map Ta Phut seaport and (3rd Phase with Phase 3.1 & 3.2) Industrial Estate Authority of Thailand Oct 2019 and PTT Tank Terminal + Gulf Energy Development Pcl 3Q21 2025 for Land reclamation and Natural gas harbor Not define 2025 2026 Bt7.5bn date yet for Liquid cargo harbor and warehouse Source: Newspaper, Eastern Economic Corridor Office of Thailand and KResearch as of January 2023 บริการทุกระดับประทับใจ 142#72K KASIKORNTHAI Thailand Economic Figures บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK K KASIKORNTHAI Currency and Interest Rate Outlook (As of March 2023) USD/THB: End Period ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Rate Trend 143 Bt 37 32.68 32.91 35.97 35.84 32.66 32.55 33.41 34.61 5.00 33.50-34.00 29.95 2.25 2.00 Fed Funds rate 1.50 1.50 1.50 33 30.60 29.98 BOT's 1-Day Repurchase rate 1.50 1.25 0-0.25 0-0.25 0.25-0.50 0.50-0.75 1.25-1:50 2.25-2.50 1.50-1.75 0-0.29-50 0-0.290.50 4.25-4.50 4.75-5.00 2.00 1.25 0.00 29 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23F 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 4Q23F USD/THB ■ Baht fluctuated around Bt33.00-35.00 per USD amid global financial market turmoil ■ As Fed moves closer to its terminal rates with banking sector risks, the USD seems to lose its gauge ■ At 2023 year-end, Baht would reach Bt33.50-34.00 per USD, as Thai economy continues to improve, due to tourism recovery amid China early reopening and a surplus expectations on Thai current account surplus ■ However, risks of global financial markets after the collapse of SVB, geopolitical tensions especially nuclear treat, and global recession are main risks to weaken Baht and Asian currencies Note: F is estimated by KBank Capital Markets Research (as of March 29, 2023) ■ Fed raised rates by 25bps to 4.75-5% in March 2023 The Fed will need to weigh the impact of the collapse regional lenders in deciding how much to raise interest rates going forward ■ We expect Fed's interest rate at the end of 2023 to be around 4.75-5.00% ■ BOT is expected to continue with its gradual hiking path, amid decreasing inflation BOT's interest rate is expected to be 2.00% at the end of 2023 บริการทุกระดับประทับใจ 144#73K KASIKORNTHAI Monthly Economic Conditions: January 2023 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 2022 ■In January 2023, private Units: YoY %, or indicated otherwise Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Private Consumption Index (PCI) 8.5 8.1 3.8 0.8 8.9 12.1 10.2 14.9 17.4 11.6 6.6 7.2 2.6 4.1 consumption continued to Non-durables Index 2.1 2.8 -4.3 4.9 2.2 3.7 1.3 7.2 7.8 5.3 2.9 3.2 0.4 2.8 increase, due to a strong Durables Index 7.4 14.1 12.2 0.2 3.0 11.6 1.9 13.6 41.5 10.4 2.6 0.3 -5.6 0.4 Service Index Passenger Car Sales Motorcycle Sales 22.9 17.1 14.8 9.8 17.3 26.5 27.3 32.8 36.8 28.9 24.7 23.0 19.9 22.7 10.6 14.9 33.8 23.9 5.8 6.2 12.9 18.2 57.1 28.2 3.3 -10.8 0.5 -9.1 12.0 27.5 16.9 -3.5 12.3 28.0 -3.4 30.0 77.1 8.6 1.5 2.8 -13.8 -1.7 Private Investment Index (PII) 2.7 7.2 3.7 1.4 0.3 3.3 5.0 4.0 10.4 14.1 0.1 -1.7 -3.2 -1.5 Construction Material Sales Index 3.3 -2.6 -2.8 -3.8 2.9 -2.2 4.1 16.9 10.9 0.8 44 4.1 11.1 -3.6 -1.5 Domestic Machinery Sales at constant prices 8.6 12.8 9.7 4.9 1.2 4.9 10.1 13.8 27.7 3.4 3.5 2.9 3.0 2.7 Imports of Capital Goods at constant prices -2.7 9.5 -5.2 4.9 -4.2 2.5 2.2 -5.7 1.3 -1.6 -4.3 -9.2 -12.9 -8.2 Newly Registered Motor Vehicles for Investment 8.6 3.5 8.5 5.0 2.5 7.4 4.8 5.9 34.6 -10.5 -4.0 -10.1 -8.5 -14.7 Manufacturing Production Index 0.4 1.9 2.4 0.2 -0.4 -2.3 -0.5 6.0 14.6 2.9 -4.2 -5.4 -8.4 -4.4 Capacity Utilization 62.8 64.1 64.0 63.9 63.3 61.9 63.2 63.3 64.9 63.8 60.5 60.1 60.0 60.4 Agricultural Production Index 0.9 -1.9 -1.8 11.7 -0.8 5.3 4.2 -3.7 -7.4 -2.7 0.6 2.2 5.4 2.7 Agricultural Price Index 11.6 4.4 0.2 8.8 10.2 9.1 11.2 18.1 23.3 18.9 18.3 13.3 7.5 1.5 Tourist arrival growth 2506.6 1641.2 2564.6 3028.2 3339.0 8518.3 13388.6 6125.0 7679.7 10598.0 7178.2 1816.0 872.0 1501.9 Exports (Custom basis) 5.5 8.0 16.2 19.5 9.9 10.5 11.8 4.3 7.5 7.8 -4.4 -6.0 -14.6 -4.5 Price 4.2 3.6 3.8 4.5 5.0 4.2 5.3 4.7 4.6 4.0 4.0 3.0 3.2 3.0 Volume 1.3 4.1 11.6 13.8 1.5 6.0 5.6 -1.0 3.7 4.7 -6.3 -8.0 -14.0 *N/A Imports (Custom basis) 13.6 20.5 16.8 18.0 21.5 24.1 24.5 23.9 21.2 15.6 -2.1 5.6 -11.9 5.5 Price 13.0 10.6 12.1 15.4 15.4 14.6 15.9 14.3 14.9 12.9 12.9 98 9.2 5.4 Volume 2.0 8.2 3.1 2.7 4.7 8.2 9.5 8.0 7.7 5.5 -6.7 -1.5 -18.0 *N/A Trade Balance ($ millions) (Custom basis) -16,123 -2,526 123 1,459 -1,908 -1,874 -1,529 -3,661 4,215 -853 -596 -1,342 -1,034 -4,650 Current Account ($ millions) -16,942.4 -2,606.1 -943.1 1,102.2 -2,020.9 -2.925.9 -3,079.8 -4,044.7 -3,587.6 -56.0 562.5 -445.2 Headline CPI 6.08 3.23 5.28 5.73 4.65 7.10 7.65 7.61 7.86 6.41 5.98 5.55 1,102.0 5.89 -2,002.6 5.02 Core CPI 2.51 0.52 1.80 2.00 2.00 2.28 2.51 2.99 3.15 3.12 3.17 3.22 3.23 3.04 rebound in tourism sector, while private investment slightly picked up MoM ■Manufacturing products improved, in line with private investment, although it remained pressured by a global economic slowdown ■Thai exports experienced contraction for 4 consecutive months and trade balance registered the highest deficit in 10 years ■Thailand headline inflation slightly declined from the previous month, but it remained at high level * Unreleased data from BOT Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ 145 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KR Household Economic Condition Index (KR-ECI) ■ In November 2022, the KR-ECI and 3-month Expected KR-ECI increased to 35.0 and 36.4, from 33.8 and 35.7 reported for October 2022, as inflation in Thailand grew at a slower rate for the third consecutive month. Additionally, households were upbeat about employment, thanks to steady recovery seen in tourism KR Household Economic Condition Index (KR-ECI) Components of 3-month Expected KR-ECI KR-ECI 50.0 KR Household Economic Condition Index (KR-ECI) -0-3-month Expected KR-ECI 48.0 Current KR-ECI 46.0 44.0 42.0 40.0 38.0 36.0 34.0 32.0 30.0 Source: KR-ECI Survey Source: KResearch 35.7 36.4 35.0 33.8 ■Nov-22 Oct-22 3-month Expected KR-ECI 32.3 37.3 Household savings Household income and employment 31.7 36.1 44.1 46.9 43.6 47.0 45.5 49.3 Household debt 45.1 49.0 Household expenses excluding debt Prices of consumer goods Source: KResearch 20.5 18.8 17.8 17.1 31.0 27.1 29.2 26.5 Nov-22 Oct-22 0 10 20 30 40 50 0 10 20 30 40 50 60 Notes: The KR Household Economic Condition Index (KR-ECI) has been devised by KResearch to monitor household sentiment towards economic conditions at the current level and over the next three months. Any reading above 50 reflects positive sentiment and below 50 negative sentiment. - Research sample includes households in Bangkok and Metropolitan Area (BMA). - KR-ECI consists of household savings, household income, household debt, household expenses excluding debt, and prices of consumer goods. บริการทุกระดับประทับใจ 146#74% YoY of MPI %MOM K KASIKORNTHAI Economic Condition Highlights: January 2023 Jan 23 MPI and CAPU improved from previous month, especially in petroleum, food and electrical appliance categories ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 4Q22 construction area permission continued to decline, which impacted investment in construction 30.0 20.0 10.0 0.0 w -10.0 -20.0 75.0 60.4 65.0 -4.4 55.0 45.0 35.0 -30.0 Jan-16 Oct-16 Jul-17 Apr-18 Jan-19 Oct-19 Jul-20 Apr-21 Jan-22 -MPI (Ihs) -%Capacity Utilization (rhs) %Capacity Utilization Rate лол % 400% 300% 200% 100% 0% -100% 0.67 0.17 -200% 1Q09 1010 1011 1012 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 -0.07 Construction areas permitted Nationwide Condominium Registration Nationwide New Housing registered in BKK and Vidnity Jan23 Headline inflation slightly declined from previous month, but remained at high level 4Q22 prices of all categories increased QoQ, but land price dropped from the same quarter in the previous year 20.0 5.02 20 -0.5 -1.0 -1.5 -20 050505050 9.88 3.04 $88 10.0 7.88 0.0 4.9 4.4 1.8 3.88 €88 -10.0 Jan- May. See May- Sep 18 Jan- May- Sep-Jan- 18 18 19 19 19 20 Hedhe CPI MbMhs) May- Sop- Jan- M1 21 22 22 22 23 May- Sep-Jan- 1009 4009 3010 2011 1012 4012 3013 2014 1015 4Q15 3016 2017 1018 4018 3019 2020 1021 4Q21 3022 Hedhe CPI Moths Coe CPI MMs) Coe CP Y-hs Singe House (Wth Lard) Townhouse (WithLand) Land Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ K KASIKORNTHAI Economic Condition Highlights: January 2023 Jan23 CCI hit a record high in 26 months, while BSI improved in line with the Thai economic recovery ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Jan23 Private consumption consistently increased, due to spending in service sector, while private investment improved เวว 90 60% 80 40% 55 51.7 49.8 BSI %YOY 20% 4.1% 22.7% 2.8% 0.4% 0%- -1.5% -1.5% -20%- 50 PCI PPI Register 4.7% Construction Import of -8.2% -40% Motor Vehicles Materials Capital Goods Consumer's Consumer's Consumer's Non Durable Durable Service 35 -60% 30 30 Jan-16 Ju-16 Jan-17 Ju-17 Jan-18 Ju-18 Jan-19 Ju-19 Jan-20 Ju-20 Jan-21 Ju-21 Jan-22 Ju-22 Jan-23 1Q22 2Q22 3Q22 ■4Q22 ■■■Dec-22 Jan-23 ConsumerConfidenceIndex (CC) Business Sertiment Index (B SI) Jan23 Foreign tourist arrivals showed strong rebound, although the number was slightly less than previous month Jan23 Exports were still in negative territory, amid global economic slowdown, while China's re-opening was not evident yet 50.0 65.0% 100% Export Value (USD Million Person = 40.0 20.4% Million) 8.9% 9.4% 7.3% 4.2% 50% 32,000 30.0 20.0 10.0 0.0 -83.2% 1,501% 1,501% 0% 28,000 24,000 -93.6%, -50% 20,000 -100% 16.000 12,000 -150% 8,000 2015 2016 2017 2018 2019 2020 2021 2022 1M23 Jan 23 No of Foreign Tourist Arrival % Tourist Arrival YoY (RHS) 4,000 0 Jan-16 Sep-16 Exports May-17 Jan-18 Sep-18. Exports excluding gold Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ % YoY 60 50 May-19 Jan-20 Sep-20 Exports % YoY May-21 Jan-22 Sep-22 Exports excluding gold % YoY 30 20 10 0 -10 -20 -30 148 147#75K KASIKORNTHAI Exports and Imports:12M22 Exports by Country ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Imports by Country Others ASEAN CLMV 11% 20.5% Others 20.0% Middle East China 35.0% 11.3% 23.4% China 9.6% Taiwan Middle East 3.9% 3.0% U.S.A. U.S.A. Hong Kong 13.2% 2.8% Australia EU Japan 3.1% 6.4% 6.9% Top 10 Exports by Product (Customs Basis) 5.9% EU 11.4% 6.0% Japan ASEAN 17.5% CLMV 5% Top 10 Imports by Product (Customs Basis) 12M22 12M22 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight % YoY USD Millions Weight %YoY Total Exports, 287,068 100% 5.5% Total Imports, 303,191 100.0% 13.6% Motor cars, parts and accessories 28,214 9.8% -3.5% Crude oil 37,396 12.3% 59.1% Automatic data processing machines and Chemicals 21,023 6.9% 1.8% 20,664 7.2% -6.2% parts thereof Machinery and parts 20,779 6.9% -0.8% Precious stones and jewelry 15,106 5.3% 50.3% Electrical machinery and parts 20,241 6.7% 5.1% Rubber products 13,862 4.8% -4.2% Electronic integrated circuits 19,041 6.3% 25.7% Polymers of ethylene, propylene, etc in 10,683 3.7% -5.0% Iron, steel and products 15,581 5.1% -5.2% primary Refine fuels 10,105 3.5% 14.2% Jewelry including silver bars and gold 15,561 5.1% 29.8% Chemical products 9,572 3.3% -3.1% Other metal ores, metal waste scrap, and 13,515 4.5% 4.3% Electronic integrated circuits 9,319 3.3% 9.4% products Machinery and part thereof 8,744 3.1% 7.2% Natural gas 12,718 4.2% 115.7% Air conditioning machine and parts thereof 7,044 2.5% 8.6% Computers, parts and accessories 9,034 2.9% -10.9% Source: Ministry of Commerce บริการทุกระดับประทับใจ K KASIKORNTHAI Export and Import Data: 2015-2021 Exports by Country ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Imports by Country 8.7% 20.4% 22.0% 22.8% 22.9% 21.7% 22.2% 21.8% 14.9% 16.0% 20.6% 22.6% 22.7% 21.2% 4.8% 4.0% 3.4% 7.0% 14.8% 9.1% 8.3% 5.4% 7.7% 5.3% 6.8% 8.2% 8.3% 5.6% 9.9% 11.2% 11.4% 11.2% 11.1% 12.7% 10.2% 15.4% 6.2% 13.3% 6.7% 7.3% 6.1% 14.9% 9.4% 9.5% 9.3% 9.9% 15.4% 10.0% 14.0% 9.2% 15.8% 14.5% 14.1% 14.0% 13.3% 11.1% 11.0% 12.5% 12.0% 11.8% 8.2% 13.7% 24.9% 20.3% 10.3% 10.2% 10.1% 9.9% 9.6% 11.5% 21.6% 8.3% 20.0% 20.0% 21.3% 24.9% 10.4% 10.3% 10.6% 11.6% 11.2% 10.3% 8.9% 8.2% 24.4% 4.8% 9.3% 9.5% 8.9% 8.8% 5.5% 7.0% 15.3% 15.1% 14.6% 15.5% 14.4% 13.7% 4.9% 4.8% 4.9% 5.7% 5.2% 19.0% 18.9% 13.9% 13.8% 13.4% 13.3% 11.9% 2015 2016 2017 2018 2019 2020 2021 ASEAN 5 CLMV EU China Japan USA Hong kong Middle East Others 2015 2016 2017 2018 2019 2020 2021 ASEAN 5 CLMV EU China Japan USA Middle East Others Total Exports, Custom Basis USD Millions 2021 Weight 2021 Import, Custom Basis %YoY USD Millions Weight % YoY Total Exports, 271,174 100.0% 17.1% Total Imports, 267,600 100.0% 29.8% Crude oil 24,139 9.0% 49.7% Electronic machines 42,902 15.8% 17.5% Motor cars, motor vehicles, parts and Machinery and parts 20,952 7.8% 15.6% 29,094 10.7% 36.2% accessories Chemicals. 20,637 7.7% 43.1% Electrical equipment 28,276 10.4% 20.3% Electrical, electronic equipment and parts 20,182 7.5% 25.9% thereof Precious stones and jewelry 10,045 3.7% -44.8% Electrical machinery and parts 19,272 7.2% 14.8% Chemical products 9,797 3.6% 45.5% Iron, steel and products 16,417 6.1% 60.6% Refine fuels 8,833 3.3% 65.2% Other metal ores, metal waste scrap, and 12,954 4.8% 59.9% Machinery and parts thereof 7,980 2.9% 21.6% products Iron and steel and their products 6,796 2.5% 40.1% Jewellery including silver bars and gold 11,983 4.5% 59.9% Textiles 6,526 2.4% 13.6% Parts and accessories of vehicles 11,333 4.2% 25.8% Other industrial products 5,804 2.1% 21.5% Source: Ministry of Commerce Computers, parts and accessories บริการทุกระดับประทับใจ 10,145 3.8% 18.3% 149 150#76% YoY K KASIKORNTHAI Export and Import Growth by Key Destinations Export growth by key destinations ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Import growth by key destinations 35% 2017 2018 2019 2020 2021 11M22 25% 6.15% 13.07% 13.85% 15% 5% 35% 2017 2018 2019 2020 2021 11M22 29.21% 16.34% 25% 18.08% 15.28% 15.38% 7.60% 5% 5% 8.56% -5% -0.18% 0.86% -5% -2.40% -6.48% -15% -15% ASEAN-5 CLMV EU China Japan USA Total Export ASEAN-5 CLMV EU China Japan USA Total Imports 2021 11M22 2021 11M22 Value Value Value Value Exports Imports Share Share (Million USD) (Million USD) (Million USD) Share (Million USD) Share ASEAN-5 31,868 11.9% 34,072 12.1% ASEAN-5 37,080 13.67% 38,032 14.3% CLMV 27,935 10.3% 28,875 10.9% 13,916 5.2% 5.2% CLMV 14,620 EU 22,541 8.3% 20,962 7.9% EU 18,711 7.0% 16,808 6.0% China 13.7% 37,204 31,831 12.0% China 66,546 24.9% 65,463 23.3% Japan 9.2% 24,985 22,872 8.6% Japan 35,685 13.3% 32,022 11.4% USA 41,768 15.4% 43,569 16.4% USA 35,685 13.3% 16,549 5.9% Total 271,174 100.00% 265,349 100.00% Total 267,600 100.00% 280,438 100.00% Source: Ministry of Commerce บริการทุกระดับประทับใจ K KASIKORNTHAI Challenges: Exports ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2023, Exports are expected to experience negative growth amid several uncertainties Exports Short-term Challenges Key Structural Problems Key Affected Products Short-term Measures from Authorities and Related Parties Long-term Measures from Authorities and Related Parties ■ Global economic recession ■ Ongoing geopolitical risks ■Declining commodity prices ■THB volatility ■High dependence on China's market ■Changing demand in electronic products and loss of competitiveness in some areas (e.g. HDD) ■High crop surplus among competitors ■Electronics and Electrical Appliances (Structural Challenge) ■Fishery and Agriculture Products (US SIMP) ■Steel and Aluminum, Washing machine (US tariffs) ■Plastic, ICs, Machinery and Electrical Equipment (US-China trade dispute) ■ Extending products to catch up with changing consumer trends ■ Enhancing practices to comply with international standards ■Setting up export promotion board ■Providing supports to help individuals gain skills and qualifications relevant to the needs of the labour market ■Negotiating FTA and regional trade agreements ■Relocating factories to GSP eligible countries ■Promoting BOI privileges granting merit based on competitiveness enhancements ■ Enhancing productivity Note: HDD = Hard Disk Drive; IUU fishing = Illegal Unreported and Unregulated fishing; FTA = Free Trade Area; GSP = Generalized System of Preferences; BOI = the Board of Investment of Thailand Source: KResearch (as of January 2023) บริการทุกระดับประทับใจ 152 151#77Million Persons K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Economic Condition Highlights: CAPEX and Investment Cycle Capacity Utilization by Key Industries Investment value of BOI-approved applications (Total)* Other manufacturing motor vehicles, trailers and semi-trailers basic metals rubber and plastics products paper and paper products. textiles tobacco beverages food 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 9M22 2021 2020 1400.0 867.5 900.0 631.1 511.9 502.7 459.5 447.4 361.4 400.0 -100.0 2016 2017 2018 2019 2020 2021 9M22 Investment value of BOI-approved applications (by Industry)* 100,000 80,000 60,000 40,000 29,640 22,067 15,379 20,000 0 Agriculture Minerals&Ceramics Light Industry 70,235 52,538 Metal Processing Electronics & Electrical Chemical Plastic Paper 15,800 18,087 0 frastructure Service & Infrastruc 2017 2018 2019 2020 2021 9M22 Technology and Innova Source: The Bank of Thailand (BOT), The Ministry of Commerce (MOC), and Office of Industrial Economics (OIE) (Data as of September 2022) Source: The Board of Investment of Thailand (BOI) Note: *Figures above indicate investments of approved projects requesting investment promotion benefits from BOI บริการทุกระดับประทับใจ K KASIKORNTHAI Tourism ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Thailand's tourism receipts will progressively increase in 2023, reaching 60% of the 2019 level %Tourism Revenue to GDP 20.0% 18.2% 17.7% -44.6% 11.5% 10.0% 5.7% 2.2% 6.6% 6.4% 0.0% 5.2% 22% 3.0% 0.69 9.70% 5.90% 3.80% 3.6% 2018 2019r 2020 1.6% 2021r 2022e 2023f % Foreign tourism revenue to GDP -% Total tourism revenue to GDP % Domestic tourism revenue to GDP In 2023, KResearch projects the number of foreign tourists coming to Thailand may reach 25.5 million, or around 64 percent of the 2019 level Meanwhile, domestic travel is expected to report steady growth. Preliminarily KResearch projects Thais will make around 155.0-160.0 million domestic trips in 2023 No. of Foreign Tourists and Domestic Trips 50.00 166.0 172.7 Tourism Revenue 200 (Bt bn) 3,500 150.8 158.0 2,947 2,994 3,000 40.00 150 38.20 30.00 90.6 39.92 100 20.00 53.0 25.5 11.14 Million Trips 2,500 1,876 1,912 997 2,000 1,757 1,500 ,071 ,082 793 352 633 1,000 50 10.00 6.70 0.42 500 319 474 1,070 687 254 98 364 0.00 0 0 2018 2019 2020 2021r 2022e 2023f 2018 2019 2020 2021r 2022e 2023f No. of Foreign tourists (persons) No. of Domestic trips ■Foreign Tourism Revenue Domestic Tourism Revenue Total Revenue Note: As of January 2023 บริการทุกระดับประทับใจ 154 153#78K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: New project launching rebound on the first 8 months; nonetheless, market remain high uncertainty Supply Side: New Housing Completions and New Projects Launched in BMR* 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Thousand) 170 ■New Housing Completions ■New Projects Launched 150 131133 130 117 14 124 111 125 114 119 102 132 108 133 110 127 81 86 115 118 112 90 66 68 101 70 58 50 30 10 2016 2017 2018 2019 2020 2021 8M21 8M22 -10 2006 Demand Side: Transferred Properties in BMR* (Thousand) 250 200 146 161 178 151 159 182 174 196 197 206 197 175 163 150 100 50 0 166 69 60.5 57 81 106 115 تتتا 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 8M21 8M22 Outstanding Mortgage Loans to Individuals and Property Developers to GDP % of GDP 30 26.8 25 20 16.8 15 10 5050 10.4 4.4 1H22 Housing Loans 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 Loans to Property Developers ■Mortgage loans to GDP are higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■ Outstanding loans granted to property developers to GDP was 4.4% in 1H22, still lower than pre-crisis level ■Supply Side: New housing projects launched in 8M22 increased 110.3% YoY mainly due to condominium launched, also compare to the low base in the last year ■Demand Side: In 8M22, property transactions increased by 8.5% compared to the low base last year, however, rising inflation and economic uncertainties may lead to more cautious buying homes later this year. ■Mortgage NPLs among Thai commercial banks was at 3.38% in 1H22, compared to 3.52% in 2021 Sources: National Economic and Social Development Council (NESDC), BOT, Real Estate Information Center (REIC), Agency for Real Estate Affairs (AREA), and KResearch Note: Including Condominium, Single House, and Townhouse; BMR = Bangkok and Metropolitan Area บริการทุกระดับประทับใจ 155 K KASIKORNTHAI Household Borrowing Household Borrowing to GDP Old Definition New Definition % of NGDP 100 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL for Consumption Loans of Thai Commercial Banks of Loans 89.7 90.1 86.8 20 79.7 79.4 78.4 79.9 80 60 71.8 59.3 60 8.8 12.0 7.5 12.7 8.8 40 24.4 28.9 10.6 22.3 7.6 8.3 12.3 12.2 23.1 23.1 22.3 22.3 9.4 13.4 9.7 9.6 15 13.3 12.8 10 25.3 25.3 24.3 5 19.6 18.9 2.62 20 7.7 11.2 15.1 24.5 29.5 33.5 33.7 33.5 34.3 38.5 38.7 37.0 0 11.9 13.2 13.9 2001 2005 2009 2013 2017 2021 9M22 0 1994 1996 1997 2010 2012 2014 2016 2018 2019 2020 2021 3Q22 Commercial Banks Non-Bank Fls SFIS Others Saving Cooperatives ---Total Old Definition: Data from 1991 - 1997: lending from commercial banks and SFIs to individual persons for consumption only New Definition: Data from 2010 onwards: takes into account individual persons' outstanding loans from all types of financial institutions, including savings Co-ops and non-banks Cross-Country Comparison of Household Debt (as of 2021) Debt Service Ratio of Thai households % of GDP % 40 160 125.9 109.1 120 90.1 89.0 30 27.9 28.1 27.2 28.4 29.1 27.0 80 68.2 67.7 62.2 20 40 0 Australia South Korea Thailand Malaysia Singapore Source: CEIC and KResearch U.S. China 10 0 2009 2011 2013 2015 2017 2019 Source: NSO and KResearch ■ Household debt to GDP stayed at 86.8% in 3Q22, and is expected to remain high in 2023 Household borrowing to GDP is higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■Thailand's household debt to GDP is comparable to other countries*; debt service ratio of Thai households is still well below 40%, indicating the household debt situation is unlikely to trigger any problems in the foreseeable future ■NPL ratio for consumption loans of commercial banks fell to 2.62% in 9M22 from 2.73% in 2021 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ 156#79K KASIKORNTHAI BOT Macro Prudential Policy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions LTV Criteria for Mortgage Loans (Effective: January 1, 2023) New (Including Top-up loans) Criteria for Credit Card / Personal Loans (Effective: September 1, 2017) Credit Cards Price and Type of Properties 1st Contract Lending Criteria NEW 2nd Contract 3rd Contract Onwards New Min.Monthly Income Bt15,000 Old Bt15,000 Personal Loans New Old LTV Limit LTV Limit LTV Limit House ≤ 100%* 80-90% 70% < Bt10mn Condo. ≤ 100%* 80-90% 70% Credit Line (times of average monthly income) Income Credit Line Credit Line <Bt30,000 ≤1.5 times Income < Bt30,000 ≥ Bt10mn House & Condo. < Bt50,000 ≤ 3 times > Bt50,000 ≤ 5 times ≤ 5 times ≥ Bt30,000 Credit Line ≤ 1.5 times ≤ 3 institutions ≤ 5 times Credit Line ≤ 5 times ≤ 90% 80% 70% 1) Under the new framework, LTV limit will be capped at 100% for the first contract of housing loans, and * loans for furniture and decorations can be added up to 10% of collaterals (old - no these conditions) 2) Prior to October 20, 2021, for the second contact, LTV limit is 80% if the first contract's installment payments are less than two years (old - three years); otherwise, LTV limit is 90% 3) Risk weight is 35% if LTV does not exceed its LTV limit; while the risk weight will increase to 75% for the loans for furniture and decorations of the first contract Notes: August 15, 2019: BOT relaxed the LTV rules for co-signers that have no ownership interest in the home being purchased April 2019: BOT tightened LTV criteria for mortgage loans, and raised down payment for the second contract onwards. Year 2009: BOT announced revised criteria in 2009-2010 on mortgage loan risk weights with a different effective date Year 2008: Risk weights for mortgage loans dropped from 50% to 35% under Basel II Criteria for Car Loans ■ Auto Registration Loans (Effective: February 1, 2019): Auto registration loan providers to be approved by Bank of Thailand and Ministry of Finance Regulated by Fiscal Policy Office Regulated by the BOT Picofinance* Pico Plus* Capital Fund Credit Line > Bt5mn > Bt10 mn > Bt50 mn < Bt50,000 Interest Rate Ceiling ≤ 36% < Bt100,00 36% for first Bt50,000. Depends on debt-servicing ability ≤24% <28% for the amount in excess of Bt50,000 ≤24% Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province บริการทุกระดับประทับใจ 157 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thailand's external balances remain relatively strong compared to peers International reserves / Imports (Import Coverage) Low foreign holding ratio in Thai government bonds Months of Imports % 9 7.7 7.0 7.0 6.7 30 6.4 6.3 6.0 24.1 25 18.4 20 3 months 14.3 15 0 5050 10 Malaysia Thailand Singapore India Indonesia Philippines Korea Source: CEIC, KResearch (data as of September 2022) International reserves / External debts (% Ratio) % 120 100 85.2 81.2 80 62.6 60 38.9 40 30.6 20 0 India Indonesia Philippines Source: CEIC, KResearch (data as of June 2022) 103.7 100% Indonesia South Korea Malaysia 13.2 1.2 Philippines Thailand 0.7 Vietnam Note: Retrieved from Asia Bond Online, based on latest available data Source: Asian Development Bank ■Thailand's economy and financial markets are able to withstand impacts from fluctuations in global liquidity due to: ■High import coverage (international reserves/monthly imports) compared with the IMF's three month import coverage guideline ■More than 100% of external debt covered by international reserves 17.2 Korea Malaysia Thailand Singapore ■Low portion of foreign holdings in Thai government bonds compared with other countries บริการทุกระดับประทับใจ 158#80Billion Baht Billion Baht K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Monetary and fiscal expansion raises financial stability concerns In contrast with the Fed, the BOT has maintained interest rate % 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 to support the economy amid COVID-19 outbreak BOT Policy Rate -Fed Funds Rate -Lower Bound Fed Funds Rate -Upper Bound Thailand has enough FX reserves to meet all internal and external obligations FX Reserves ■Net Forward Position $ Billion $ Billion ■3 months of imports Reserves backing banknotes ■ST external debt 300 $279.2 bn 300 $245.8 bn 250 250 200 200 76.6 150 246.0 216.6 150 $217.96 Billion 100 65.0 100 50 50 76.4 33.2 29.2 0 0 2021-end 2022-end Source: BOT and KResearch Last Update: December 2022 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Sources: BOT, Federal Reserves and KResearch (as of December 2022) Excess liquid assets in Thai commercial banks slightly rose Million Baht 5,000,000 ■Due to high inflationary pressures, the Fed decided to raised its policy rate to 4.25-4.50% in December 2022 ■Monetary easing leads to a massive exodus of capital from 4,000,000 emerging markets and worsens exchange rate depreciation in 2022. However, Thailand's external stability will likely be 3,000,000 maintained ■The Thai banking system excess liquidity rose slightly. The CAR was good (18.86% as of November 2022) and NPL ratio was still manageable (2.92% as of 9M22), with net profits of Bt162.2bn in 9M22 %LCR 190.9 187.7 188.6 183.5 184.7 183.9 182.8 176.9 178.1 173.8 2,000,000 2016 2017 2018 2019 2020 Liquid Assets 2021 1Q22 2Q22 3Q22 Nov-22 -LCR (%) Note: BOT has imposed the Liquidity Coverage Ratio (LCR) Framework which replaces the maintenance 6% reserve requirement. Regarding the LCR framework, all banks shall maintain high-quality liquid assets not less than net expected cash outflow over the next 30 days. The LCR was implemented on January 1, 2016, with the minimum requirement set at 60%, rising in equal annual steps of 10 percentage points to reach 100% on January 1, 2020 บริการทุกระดับประทับใจ K KASIKORNTHAI Other Figures Thai Bond Market Size (Gov't and Private bonds) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 53.9 52.4 88.8 91.0 90.9 63.3 64.4 64.8 69.4 69.6 70.2 72.9 74.5 73.6 78.1 78.7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) Foreign Holdings of Thai Bonds 1,200 1,000 800 600 4.0% 5.9% 8.3%8.4% 7.4% 6.0% 6.4% 400 -1.0% 1.5% 1.1% 200 0 2007 2010 Foreign Holding Outstanding (LHS) Source: BOT and ThaiBMA 2013 2016 90 × ៩ ៖ ៩ ៖ 8 8 3 8 8៖ 100 % to GDP % %/3.5 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields 3.0 2.5 2.0 1.5 1.0 0.5 0.0 6M 1Y -Dec 19 2Y 3Y Dec 20 4Y 5Y -⚫Dec 21 6Y 7Y 8Y --Dec 22 9Y Jan 12, 2023 10Y 15Y Current Account and FX Reserve 3.0 USD Billion 50,000 10% 40,000 USD216.6 bn (2022-end) USD Billion 300,000 8.2%7.9% 7.1% 6.1% 6.9% 6.9% 8% 6% 4% 2019 % of Thai Bond Market (RHS) 0% 2022 % of Total Bond Outstanding 250,000 30,000 200,000 20,000 10,000 150,000 0 100,000 -10,000 -20,000 USD-18.0bn (11M22) 50,000 -30,000 0 1993 1997 2001 2005 2009 2013 2017 2021 บริการทุกระดับประทับใจ Current Account (LHS) --FX Reserves (RHS) 160 159#81ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Card Loans/GDP 2.0 2.0 2.0 2.1 2.2 2.4 2.4 2.5 2.5 2.6 2.7 2.9 2.8 3.5 2.7 3.0 2.5 2.0 196,5 216,4 228,9 261,55 290,425 318,141 333,493 360.096 394.123 418,747 457,090 449,733 458,181 455,619 1.5 1.0 0.5 0.0 2013 2015 2017 2019 2021 3Q22 K KASIKORNTHAI Other Figures Million Baht Housing Loans / GDP Million Baht 600,000 500,000 % to GDP 5,000,000 26.7 27.3 26.4 30 400,000 300,000 200,000 100,000 4,000,000 21.0 22.0 22.3 22.3 22.6 23.2 -25 0 19.4 2009 17.7 17.4 18.0 18.3 2011 20 3,000,000 15 2,000,000 1,000,000 0 10 10 Credit Card Loan Outstanding (LHS) Credit Card Loan to GDP (RHS) Note 1) Credit card loans represent outstanding credit card loans from commercial banks and non-banks, excluding SFIs, saving cooperatives and others financial Institutions Personal Loans/GDP 1,709,897 1,885,139 2,034,137 2.263.552 2,510,012 2,783,129 3,021,811 3,251,488 3.448.852 3,706,397 3,918,565 4.172.556 4.410.235 4.537.468 5 Million Baht 0 1,000,000 2009 2011 2013 2015 2017 2019 2021 3Q22 Housing Loans for Personal Consumption (LHS) --% Housing Loans to GDP (RHS) 800,000 600,000 2.2 400,000 Note Housing loans represent outstanding housing loans for personal consumption granted to individuals of householders by financial institutions (including Commercial banks, Finance companies, Credit financiers, SFIs, and Insurance companies but excluding Saving Cooperatives and others financial Institution) Source: BOT, NESDC 200,000 0 % to GDP 6.0 4.8 4.4 5.0 3.7 3.4 4.0 1.7 1.9 2.1 2.3 2.4 2.3 2.3 2.3 2.3 3.0 213,745 187,491 213,310 257,129 299,139 312,851 318,354 332,996 354,243 383,303 579,911 580,383 826,311 2.0 1.0 0.0 2015 2017 2019 2021 3Q22 % Personal Loans to GDP (RHS) 2009 2011 2013 Personal Loan Outstanding (LHS) Note: 1) Personal Loans represent outstanding personal loans under supervision (including commercial banks and non-banks, excluding SFIs, saving cooperatives and others financial Institution) บริการทุกระดับประทับใจ 161 K KASIKORNTHAI Other Figures United States Thailand South Korea Japan Malaysia Singapore China 0 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loans to GDP as of 2021 Thai Banks' Net Loan Growth and NPL Ratio % YoY % to Total 66.9 93.5 15 5.23 Loans 6 12 5 99.7 3.89 9 2.94 2.99 3.08 3.09 3.14 3.25 3.12 2.92 4 101.1 6 2.44 2.31 2.31 2.69 3 123.9 3 2 12.5 15.1 14.0 10.5 4.2 3.4 1.3 4.3 5.2 1.9 6.1 5.4 4.6 0 1 152.0 % of GDP -3 168.5 -0.5 2009 0 2011 2013 2015 % YoY Net Loan Growth 2017 2019 2021 9M22 ▬▬▬% Gross NPL Ratio 50 100 150 200 Note: Data on China, Korea and Japan include loans from commercial banks as well as financial institutions, the rest include loans only from commercial banks Credit Card Statistics Note % YoY Net loans represent growth of net loans in 18 Thai commercial banks from C.B.1.1 Latest data for % Gross NPL is at 3.04% as of 2Q22. GDP Per Capita % YoY 22.3 225050524 19.9 Baht 250,000 11.3 12.8 15 11.1 9.7 10.2 8.7 200,000 4.0 6.7 7.2 8.6 3.9 1.8 6.0 10 -1.1 5.8 14.3 11.0 9.5 4.8 8.0 9.4 6.2 9.2 1.9 11.1 150,000 1.7 -5 -1.6 100,000 -10 Credit Card Loan Growth Spending Growth -11.3 -15 50,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 11M22 147,364 163,956 170,467 185,159 192,327 195,807 0 Note: The credit card statistics number includes foreign bank and non-bank credit cards Source: BOT, NESDC, NSO, CEIC Data, and KResearch 2009 บริการทุกระดับประทับใจ % YoY 20 3.2 5.7 5.4 5.2 2.9 3.2 10 -7.7 0 -10 202,151 213,586 225,095 236,861 243,705 224,962 232,176 -20 2012 GDP Per Capita 2015 2018 % YoY 2021 -30 162#82K KASIKORNTHAI Other Figures Million Person Population and Labor force ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Unemployment Rate % of Labor Force 70 60 54.0 55.0 54.5 54.8 55.2 55.6 56.0 56.3 56.8 56.6 57.2 2.50 1.93 50 2.00 1.69 1.50 40 1.40 1.50 1.18 30 1.04 20 1.00 0.68 0.66 0.72 0.84 0.88 0.99 1.05 0.98 10 0.50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■Population (Age>= 15 years) 0.00 2009 2011 2013 2015 2017 2019 2021 Oct-22 ■Labour Force Foreign Direct Investment Foreign Direct Investment Position by Countries Trillion Baht % 100% 10 25 22.1 22.2 21.8 22.9 23.8 24.7 24.3 25.7 25.9 25.4 15.2 13.9 20 80% 8 117 9.6 8.2 7.9 8.1 7.5 6.6 6.8 8.9 10.4 6.7 6.4 6.3 15 7.5 6.4 60% 6 10 31.7 34.6 35.0 35.1 36.3 35.2 36.2 34.0 32.6 32.3 1.3 -1.6. -1.3 5 40% 4 0 1.4- 1.9 1.6 -5 17.0 16.1 16.0 2 20% 1.7 2.3 2.0 2.3 16.0 14.0 14.8 14.8 13.2 28 2.8 3.0 12.5 12.7 4.9 5.6 5.8 6.6 6.5 7.0 7.9 7.7 8.6 9.1 9.0 -10 18.2 17.1 17.6 16.3 16.1 16.7 15.5 17.6 19.8 20.3 0 -15 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FDI Position (LHS) -% YoY (RHS) 2012 2013 ASEAN 2014 ■EU 2015 2016 ■China 2017 2018 2019 ■ Japan ■ US 2020 2021 ■Others Note: - FDI refers to equity investment, lending to affiliates, and reinvested earnings; investment in equity is treated as a direct investment when the direct investors own 10% or more of ordinary shares - FDI position by countries is an investment outstanding that nonresident investors have with resident enterprises as stock concept - Converted FDI US Dollar to Thai Baht by reference rate from the Bank of Thailand Source: BOT, NESDC, NSO, and KResearch บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK For Further Enquiries, Contact KASIKORNBANK Investor Relations: Chief Investor Relations Officer Investor Relations Team Tel (66) 2470 2673 to 4 Tel (66) 2470 6900 to 1 IR Website Tel (66) 2470 2660 to 1 Email: [email protected] www.kasikornbank.com → Investor Relations Disclosure Practice: ■Unreviewed/unaudited quarterly financial reports are released within 21 days from the end of each period ■Reviewed financial reports are released within 45 days from the end of the period for 1Q and 3Q; Audited financial reports are released within 2 months from the end of the period for 2Q and 4Q ■Following KASIKORNBANK's Disclosure Policy and good governance practice, KBank maintains a "silent period" for 7 days prior to the unreviewed/unaudited earnings announcement. During this period, the Bank refrains from replying to questions or commenting on the earnings announcement and arranging one-on-one or group meetings with analysts and investors บริการทุกระดับประทับใจ 163 164#83K KASIKORNTHAI DISCLAIMER: Bank of Sustainability STRIVE TOWARDS NET ZERO SOCIETY 1901 1910 1930 1950 Average Temperature Change in Thailand since 1901-2021 Warming Stripes Image by Professor Ed Hawkins (University of Reading) https://showyourstripes.info/s/asia/thailand 1970 1990 2010 2021 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK This document is intended to provide material information relating to investments or products in discussion and as a reference during the discussion, presentation, or seminar only. It does not represent or constitute any advice, offer, contract, recommendation, or solicitation and should not be relied upon as such. In preparation of this document, KASIKORNBANK PUBLIC COMPANY LIMITED ("KBank") has made several crucial assumptions and relied on financial and other information available from public sources as of the date of this document. Therefore, KBank assumes no responsibility or liability and makes no representations or warrants with respect to the accuracy and/or completeness of the information described herein. Before making their own independent decision to make any investment or enter into any transaction, the recipient of this information ("Recipient") shall carefully review information relating to services or products of KBank, including but not limited to economic and market situations and other factors pertaining to the transaction as posted on KBank's website at URL www.kasikornbank.com and in other sources, and make their own investigation on all other information, documents prepared by other institutions, as well as consult with Recipients' financial, legal, or tax advisors on each decision. The Recipient understands and acknowledges that the investment or execution of the transaction may be a transaction with low liquidity and KBank shall assume no liability for any loss, damage, or expense of any nature incurred by the Recipient arising out of such investment or execution of the transaction. The Recipient also understands and acknowledges that the information so provided by KBank does not represent the expected yield or consideration to be received by the Recipient arising out of the investment or the execution of the transaction. Further, the Recipient should be aware that the transaction can be highly risky as markets are unpredictable and uncertain, and there may be inadequate regulations and safeguards available to the Recipient. KBank reserves the right to amend, either in whole or in part, the information so provided herein at any time as it deems fit, and the Recipient acknowledges and agrees with such amendments, accordingly. For any inquiry, or in the case of making a complaint, the Recipient may seek further information from KBank at [email protected], +(662) 470 6900 to 01, +(662) 470 2660 to 61, or +(662) 470 2673 to 74. * The information herewith represents data in the Bank's consolidated financial statements, some of the numbers and ratios are calculated before netting with KBank's non-controlling interest. บริการทุกระดับประทับใจ 165 K KASIKORNTHAI บริการทุกระดับประทับใจ