#1b ทีเอ็มบีธนชาต TMBThanachart Investor Presentation 3Q21/9M21 Financial Performance Analyst Meeting October 21st, 2021#2Executive summary Focusing on funding optimization and cost discipline against revenue pressure. Asset quality in line with target. Business environment remained challenging throughout 3Q21. Our direction was therefore unchanged from 1H21. The overall 9M21 can be highlighted as follows. Focused on quality growth strategy to ensure the healthiness of our balance sheets during the pandemic Enhanced funding structure further to reduce pressure on NIM from slow asset growth and yields Maintained cost discipline and delivered cost saving initiatives during integration activities Prudently managed asset quality and ensured sufficient level of provision as well as robust capital buffer We will remain conservative as it is still a long and uncertain road for economic recovery. tub The improving vaccine rollout, the easing of Covid-19 restrictions and the open for low-risk country tourists are expected to be positive for business activities. However, Covid-19 risks still exist and Thailand's fragile economy will take time before seeing strong recovery and to regain pre Covid-19 strengths. With that outlook, TTB will stick with conservative approach and quality growth strategy. As EBT mission was successfully carried out, revenue synergy initiatives, the last component of merger synergies, can be kicked start. TTB's new value proposition post-EBT would support fee income recovery. However, it is not a quick turnaround catalyst but rather an engine to build and sustain fee income base in medium to long term. Credit cost will linger at elevated level but not deviate from our guidance. We will maintain our prudent risk management to alleviate risks of the policy cliff effect. 2#3Relief Program Update 3Q21/9M21 Performance & Asset Quality Post-EBT update tub 3#4Loans under debt relief program remained under control Loans under Relief Program to Total Loans • THB billion 1,382 1,359 1,359 Jun-20 Full lockdown ~40% ~14% Jun-21 ~12% Sep-21 Partial lockdown Partial lockdown Automatic opt-in Non-Debt Relief Debt Relief (Included Debt Relief Exit) Note: Loans to customers excluded interbank loans tub In 3Q21, loans under debt relief program represented approximately 12% of total loan portfolio, slightly lower from 14% in 2Q21 and 40% during a full lockdown in Jun-20. • The QoQ decline was due mainly to the exits from commercial customers as the programs expired. The Bank did see an uptick in relief requests from retail customers due to the 3rd wave partial lockdown. However, the request traffic was much lower than the 1st wave in 2020 as the BoT's new/extended relief programs have set criteria for only eligible customers. In terms of debt relief portfolio quality, we consider our debt relief portfolio remains healthy as over 80% of debt-relief customers requested for light modified terms and are able to service their debts with full interest payment. Although Covid-19 will continue to be a threat to economic recovery, we see that a risk to our portfolio and B/S is limited. Firstly, we have small exposure in directly affected industries. Secondly, we have been prudent in providing assistants to potential customers and continue to de-risk weak loans. Lastly, we have been strict to our Guiding Principle of Post Relief Risk Schemes to evaluate customers' behavior and risk profile to ensure sufficient level of ECL. 4#5Debt relief profile by customer segments and key products Commercial Loans Non-Debt Relief (Included Debt Relief Exit) Loans under Relief Program • THB billion 601 Corporate Small Enterprise • 585 592 505 489 482 tub -20% Sep-21 . As of Sep-21, 9% of commercial loans remained in debt relief program, lower QoQ due to customers' exits from both corporate and small SME segment. An increase in small SME balance was due mainly to customer reclassification post-EBT. The new booking remained moderate and smaller than repayment as we remain cautions. Moreover, with our close monitoring and the applying of BoT's special/soft loan criteria, we could better understand customers' needs and sift the artificial demand from the real one. Under prolonged Covid-19 situation, we believe it is crucial to utilize the system's limited resource prudently. Likewise, as we have attentively assessed and provided support to eligible customers as per the BoT's debt relief 3rd phase criteria, the increase in retail segment was slightly QoQ and much lower than Jun-2020. The current retail loans under relief program was at 14%, mainly from HP and Mortgage portfolio. 96 ~38% 96 110 ~26% ~16% -9% -99% Jun-20 Jun-21 Sep-21 Jun-20 ~9% Jun-21 ~7% Sep-21 Jun-20 -53% Jun-21 THB billion Retail Loans 779 774 765 !II ~45% -13% ~14% Jun-20 Jun-21 Sep-21 Hire Purchase ~75% Mortgage 408 400 391 300 305 305 ~50% ~12% Jun-20 Jun-21 ~14% Sep-21 Note: Loans to customers excluded interbank loans / Unsecured Credit card and personal loans Unsecured 60 57 55 ~40% -20% ~16% Jun-20 Jun-21 ~17% Sep-21 ~4% ~4% Jun-20 Jun-21 Sep-21 5 LO#6Principle-based relief schemes and deterioration of asset quality captured by the ECL model Guiding Principle of Post Relief Risk Schemes tub Repayment Schedule Scheme Interest Principal Minimum Stage Minimum PD Level SC 1 Full Full 1 Normal SC 2 Full Partial 1 SC 3 Full Postponed 1 SC 4 Partial Postponed 1 SC 5 Additional skip payment ≤ 6 months 2 SC 6 Additional skip payment ≥ 6-12 months 2 SC 7 Additional skip payment ≥ 12 months 3 . The Bank has provided relief measures to affected customers, ranging from scheme 1-7 (SC1-SC7), based on customer's debt service ability The Bank uses BOT approved and externally validated ECL models consistently throughout 2021, with parameters and behavior assumptions which drive PD and LGD and immediately pick up on any portfolio deteriorations also via SICR method. On LGD of auto portfolio, we looked back to 2 crisis cycles, the financial crisis and first car sales crisis, to pick up the worst LGD. On top of that we applied a Covid-19 factor. The model picks up days past due within stages and imposes bucket and corresponding PD shifts. On top of that, we flag customers that selected one of the 7 schemes to reflect real risk level and assign elevated PDs in accordance with the severity of the program. Therefore, by continuously updating the actual customer scheme and stage from the real flow, ECL generates provision requirements that reflect the Covid-19 impact, reducing the necessity to maintain management overlay (MO). Nevertheless, we set additional MO for the unpaid accrued interest in SC5-6, on top of using 100% LGD and respective customers' PD for all schemes. 100% In addition, looking forward and taking into account the 2nd Covid-19, MO has been set aside based on industry/customers' specific needs. Note: For SC 2-4, loan staging could be classified as stage 1 or 2 depending on customer's pre-Covid-19 status (no up-staging took place), to reflect real risk level 6#7Covid-19 readiness: Call center and non-voice capacity expansion to support incoming relief requests Incoming requests from impacted customers tub 1st wave (Full lockdown) ~14k call in Sep after partially ease business lockdown, reaching almost the lowest level since Dec❜20 ~300k call a month during peak period and dropped ~80k call a month during peak period by ~70% after peak 2nd wave (Partial lockdown) 3rd wave (Partial lockdown) Mar 2020 Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2021 Feb Mar Apr May Jun Jul Aug Sep % Loan under relief program to total loan -40% -20% -15% ~14% ~14% ~12% 7#8Relief Program Update 3Q21/9M21 Performance & Asset Quality Post-EBT update tub 8#9Operating performance Asset quality Summary of 9M21 operating performance 2021 Targets Loan Growth ≤Flat Actual 9M21 -2.4% YTD Deposit Growth <Flat -3.5% YTD NIM Stable (3.0% in 2020) Non-NII /Total Asset 0.8%-0.9% 2.98% (3.06%, excluded PPA impact) 0.77% C/I Ratio 47%-49% 46.5% (45.2%, excluded PPA impact) % Stage 3 < 3.6% 2.98% Credit cost 160-180 bps 161 bps • • • tub Under weaker-than-expected economic recovery throughout 9M21, loan growth has been more selective than the original plan. We have continued de-risking weak loans to mitigate downside risks and improve portfolio quality. This is to preserve and to ensure balance sheet healthiness for our future growth once economic situation allows. Balance sheets optimization on deposit side was well-executed. Post-merger deposit structure allows TTB to run down high cost deposits and replace with flagship products, resulting in improving cost of deposit. Funding volume was also optimized during slow loan growth environment in order to optimize profitability margin. NIM could maintain at 2.98% given the Bank's unique position from B/S optimization and funding strategy which helped lessen the impact from yield compression and changing accounting estimates to be more conservative on EIR recognition on mortgage portfolio. • Non-NII to total asset lingered in the lower bound of our target, reflecting the impact of Covid-19 resurgence on fee income. Under this challenging times, TTB has tactically adjusted our sale approach and product offerings. As result, 3Q21 retail fees could gradually recovered QoQ, despite the limitation from partial lockdown. Key drivers were non-auto BA and MF fee. ☐ . Despite integration activities, OPEX dropped YoY, as a result of cost discipline, cost saving initiatives and partly from lower variable expenses from lower business volume. However, due to the lockdown, some integration activities and related expenses i.e. rebranding and asset transfer were postponed to 4Q21, implying that C/I ratio in 4Q21 will remain at high-40s but not deviate from the guidance. In terms of the Debt Collection Act, announced in September, we expected it to be an unfavorable factor for operating expense. The uptick in % stage 3 was mainly a combination of slow loan growth and a slight increase in stage 3 outstanding. The rise in stage 3 loans was from 2 main reasons: our intention to slowdown NPL sales to preserve NPL value and our effort to de-risk weak loans (both stage 2 and 3 loans). • 9M21 credit cost came at the lower bound of our guidance as we already built up reserve in 2020 (THB24.8 bn) under the expectation of prolonged Covid-19 and slow economic recovery in 2021. Current LLR ratio of 121% is sufficient and reflects our portfolio nature of retail and collateral base.#10Maintaining quality loan growth strategy amid prolonged Covid-19 tub Total Loan Others Retail Credit Card 1,393 bn 1,359 bn Flat QoQ 1,359 bn -2.4% YTD 1% 2% Retail Personal Loan 1% .2% 1% 2% 2% 12% 2% Retail HP 29% 30% 29% New Car 69% Used Car 17% CYC 14% Retail Mortgage 22% 22% 22% CYB 0.1% Small Enterprise (SE) 7% 7% 8% Breakdown Retail HP 391 bn Corporate 36% 36% 37% Dec-20 Jun-21 Sep-21 • . • TTB aims to optimize loan mix and shift portfolio toward retail-mortgage and HP as part of B/S synergy initiatives. However, due to Covid-19 pandemic, the Bank has been more selective in growing loans in order to preserve B/S quality for future growth once economic situation allows. As a result, total loan was flat QoQ and -2% YTD as of 3Q21 due to -1% QoQ and -2% YTD in retail loans and +1% QoQ and -3% YTD in commercial loans. Our key focuses, retail-mortgage could grow +0.2% QoQ and +2% YTD amid our selective growth strategy and higher market competition for quality customers. HP portfolio, on the other hand, declined -2% QoQ and -4% YTD as loan repayment outpaced new bookings. The supply shortage in car market during 3Q21 also interrupted growth pace. Nonetheless, TTB could maintain HP market share at our normal level of around 15%. Note that the increase in % SE loan from 7% to 8% in 3Q21 was due mainly to re-segmentation after the completion of EBT. The direction on small SME segment is unchanged, still in a risk-averse mode and we will continue to de-risk weak loans. As a result, SE new booking was slower than repayment flows. 10#11Deposit strategy and structure improving cost of deposit Total Deposit TD+NCD 1,373 bn 14% 51% Hybrid 1,324 bn 11% 53% 1,325 bn 10% 49% LLI Flat QoQ -3.5% YTD Saving 29% -35% 29% CASA -36% CASA 34% ~41% CASA Current 6% 7% Dec-20 Jun-21 Sep-21 % Retail deposits 76% 75% 73% tub . • • • Deposit was flat QoQ and -4% YTD, in line with Bank's B/S synergy initiatives and liquidity management amid slow loan growth environment. Deposit strategy focuses on growing quality deposits which will lead by our flagship products - All Free and No Fixed and to reduce high-cost Time Deposit to improve cost of deposit further. Going forward, the Bank will optimize deposit structure thru saving & hybrid products and balance Time Deposit level to ensure cost management efficiency. In 3Q21, the change in deposit mix and the growing in saving deposits was due to 2 main reasons; Continuous growth in All Free, +27% QoQ and +35% YTD and ➤ Re-segmentation and a transfer from some of hybrid products (Ultra-saving) to saving accounts after the EBT 11#12Optimizing balance sheet with healthy liquidity position Continue Optimized B/S through Liquid Asset Management THB billion 101% 95% 295 Dec-20 Net Liquid Asset LDR 103% 100% 97% 95% 312 Mar-21 274 Jun-21 LDR+Borrowing % of Total Funding 103% 97% 271 Sep-21 Net Liquid Asset Definition: Cash + Interbank Asset + Investment - Interbank liab. LCR Well Above Regulatory Requirement BOT Minimum Requirement ■LCR 219% 179% 183% 184% Sep-20 Dec-20 Mar-21 Official LCR as of Sep 21 will be reported to BOT in Oct 21 Jun-21 100% 64% 63% Retail Deposit is a Major Source of Funds 23% 24% ■Jun-21 ■Sep-21 tub 2% 2% 3% 3% 5% 5% 3% 3% Retail Deposit Commercial Deposit Senior Debenture Sub-debenture Interbank Borrowing Others • • To optimize B/S, the Bank proactively manages funding cost and enhances return on liquid assets via other investments. Deposit is a major source of funds, and the Bank strategically builds retail deposit base to ensure stable deposit and less reliance on short-term wholesale funding and the Bank expected the trend to continue with deposit-led strategy and creation of a strong deposit franchise. • LCR was well above 100%, the BOT's minimum requirement. 12#13Consistent improvement in cost of deposit with a strong liquidity position tb Strong Liquidity Position 1,443 1,398 1,392 1,404 1,406 1,393 1,384 1,359 1,398 1.51% 1,382 1,373 1,380 1,363 1,359 Loans -2.4% YTD Deposit -3.5% YTD 1,324 1,325 1.29% 1.16% ~150 bn ~110 bn 0.96% 0.84% 0.80% 0.76% 0.76% Cost of Deposit ~210 bn -75 bps from Dec-19 ~160 bn ~135 bn ~148 bn TTTTTT Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 -81 bn Net Interbank Sep-21 • Our unique offerings keep TTB's retail deposit franchise in a leading position and also help the Bank in terms of deposit cost management. ➤ Our flagship products, All Free and No-Fixed, is an interest-barbell tool which allows the Bank to manage deposit growth and cost more efficiently. ➤ Post EBT structure gave room to optimize balance sheet by running down high-cost deposit. • FIDF cut helped reduce pressure from loan yield side. However, the benefit was passed on to our customers. • As a result, a hallmark of this deposit cost reduction continued for 7 consecutive quarters since merger, showing a proven track record in executing our priorities. 13#14Stabilized NIM from ability to manage deposit cost despite declining in asset yields Utb Cost of Deposit Loan Yield Loan yield (excluded PPA impact) 5.11% 4.86% 4.64% 4.58% 4.64% Net Interest Margin (NIM) NIM (excluded PPA impact) 2.94% 3.06% 3.04% Flat QoQ -20 bps YoY 1.14% -36 bps YOY 4.83% -6 bps QoQ -37bps YoY 5.00% 4.52% 4.46% -48 bps YoY 4.52% 2.92% 2.98% 0.96% 0.76% 0.76% 0.78% 2.95% -3 bps QoQ +3 bps YoY 3.07% 2.98% 3.06% Flat YoY 2.98% tui li lii li ||| || 3Q20 2Q21 3Q21 9M20 9M21 3Q20 2Q21 3Q21 9M20 9M21 III 3Q20 2Q21 3Q21 9M20 9M21 • 3Q21 deposit cost recorded at 0.76%, stable QoQ despite higher deposit volume. The YoY reduction was driven by the Bank's effort on funding strategy and balance sheets optimization. 9M21 cost of deposit was 0.78%, materially down by 36 basis points YoY. This was due to balance sheet optimization plus deposit repricing strategy on flagship products. • Loan yield remains under pressure from sluggish economic and low rate environment together with quality loan growth strategy to preserve B/S quality. As a result, loan yield dropped QoQ and YoY. Following the reduction of market benchmark rate throughout 2020, loan yield compressed to 4.52% in 9M21. • • NIM slightly dropped QoQ from yield compression. YoY improvement was mainly from funding optimization. 9M21 NIM was stable YoY at 2.98%. This was driven by balance sheet optimization and effective deposit repricing strategy during low rate environment which helped compensate for yield pressure. 14#15Well-managed funding cost lower pressure on NII THB million Net Interest Income -1.6% QoQ -4.9% YoY 13,227 12,782 12,577 3Q20 2Q21 3Q21 -5.1% YoY 40,286 38,231 9M20 9M21 tub • • Apart from B/S quality, TTB has also emphasized on P&L quality under TFRS9 adoption. We have adjusted effective interest rate (EIR) recognition to be more conservative i.e. on mortgage portfolio in order to reflect and factor in the impact from current business environment. Although this added pressure on interest income, we believe it helps improve P&L quality by mitigating risk of overstated income. As pressure from adjusted EIR approach, lower asset yield and slower loan growth outweighed the well-manage funding cost and volume, 3Q21 and 9M21 NII remained on negative territory. 15#16Despite intensified Covid-19 outbreak and the lockdown measure in many areas, retail fee income improving tub Total Non-Interest Income (Non-NII) Breakdown Strategic Non-NII Products THB billion Bancassurance fee THB million 1,514 1,388 1,083 1,224 1,238 3,686 3,850 10,689 10,175 -5% YoY Mutual fund fee 1,088 560 704 2,015 3,084 2,687 -13% YoY 447 479 1,549 TF and FX fee 280 313 383 420 349 1,026 1,152 FX 262* TF -1% QoQ, +3% YoY LG fee Total Non-NII -2% YoY 2,984 3,118 3,086 7,605 7,488 131 135 132 137 132 381 402 352 -10% QoQ, Other Non-NII 919 829 +135% YoY Net fee & service income +3% QoQ, 2,633 Loan-related fee 53 69 2,198 2,257 -14% YoY 43 55 55 172 180 3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21 3Q20 2Q21 3Q21 9M20 9M21 Prelim data . Non-interest income in 3Q21 was slightly down QoQ from non-core revenue (lower gain from FVTPL and dividend income) which offset the improvement in retail fees. The YoY improvement was mainly from low base in 3Q20 in non-core revenue. 9M21 Non-NII was weighted down from both fee income and other operating income. Despite lockdown measure in many areas, fee income from retail businesses gradually improved QoQ on the back of mutual fund fee. The contraction in auto BA fee was from lower new booking QoQ due to auto supply chain disruptions. MF fee increased mainly from high fee sale volume as global equity advanced during the quarter, supporting investment sentiment. We also introduced SCBAM as our new partner to our open architecture in August. ➤ BA fee was relatively flat, dragged down by auto BA fee. Commercial fee remained flat QoQ *after reclassification, THB 262 mn was reported as FX revenue in 2Q21 (down approx. 83 mn) 16#17With cost discipline, cost synergy realization going better than original plan Ub THB million NII Total Operating Income Total Operating Expense THB million Non-NII ◆ Total Operating Income 50,975 48,406 -5% YoY 10,689 10,175 -5% YoY 16,212 2,984 15,900 15,663 3,118 13,227 12,782 12,577 -1% QoQ -3% YoY -1% QoQ 3,086 +3% YoY -2% QoQ -5% YoY -2% QoQ -2% YoY 40,286 38,231 -5% YoY 7,429 7,402 7,268 3Q20 2Q21 3Q21 9M20 9M21 3Q20 2Q21 3Q21 Overall core revenue was impacted from economic slowdown from the pandemic. Total revenue was down by -1% QoQ and -3% YoY in 3Q21 • 9M21 total operating income subsided to TH 48.4 bn. • -4% YoY 23,536 22,597 9M20 9M21 Recurring expenses declined from cost-saving initiatives after merger. OPEX recorded at THB 7.3 bn, down by -2% QoQ and -2% YoY. The Bank made sure stringent cost saving initiatives coming along as plan during this uncertain time. Despite one-time integration expenses and separation package in 9-month period, 9M21 total operating expense was well-contained by cost saving synergy. As of Sep-21, the Merged bank's headcount went down to 15,379 personnel (-4.1k after merger), resulting from the Bank's effort to execute merged bank synergies Branch rationalization continues as plan (reduced by -12 branches QoQ and -243 branches after merger). 17#18C/I ratio in line with target, with long-term aspiration to achieve low-40s tub . Cost-to-Income Ratio C/I ratio (excluded PPA impact) 45% 45% 45% 45% 45% 46% 46% 46% Flat QoQ and YoY 46% 46% Flat YoY 3Q20 2Q21 3Q21 9M20 9M21 With the pressure on income affected from Covid-19, C/I ratio was at 46% with the effort in accelerating cost saving synergies to self-fund integration expenses. If excluded PPA impact, cost to income ratio would have been at 45%. C/I ratio in 4Q21 is expected to remain at high-40s but within the guidance due to the remaining EBT expenses i.e. delay in rebranding activities, delay in assets transfer, resulted in postpone recognition the subrogation expense 18#19Pre-provision profit reflecting our prudent business direction • THB million Pre-Provision Operating Profit (PPOP) -1% QoQ -4% YoY 8,809 8,502 8,438 27,462 25,839 -6% YoY 3Q20 2Q21 3Q21 9M20 9M21 As a result of our prudent business direction during fragile economic recovery from Covid-19, 3Q21 PPOP was THB 8,438 mn, -1% QoQ and -4% YoY. 9M21 PPOP recorded at THB 25.8 bn. tub 19#20Prudent risk management and prudent level of allowances set aside Net Profit Utb ECL & Credit Cost Expected credit loss (ECL) (THB million) Annualized credit cost (bps) 238 199 160 161 161 160 161 16,595 16,497 -1% YoY 8,237 +1% QoQ 6,863 5,480 5,491 5,527 -19% YoY II 3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21 A growing number of Covid-19 cases and renewed partial lockdown measures are increasing uncertainty. Hence, the Bank has continued to manage down weak loans by written-off and sales to ensure balance sheets quality. In 3Q21, the Bank set aside provision for loans and management overlay in total of THB 5.5 bn. 9M21, credit cost was 161 bps, up 1 bps YoY. We ensure the sufficient ECL by our Principle-based relief schemes since model development during the pandemic. Provisioning is expected to be elevated in 2021 but still within guidance. This is to ensure that the Bank has buffer for unforeseeable future and will be able to alleviate the risk of policy cliff effect. 1,619 1,235 • -14% YoY -7% QoQ 2,782 2,534 2,359 +46% YoY 8,877 || 7,675 3Q20 4Q20 1Q21 2Q21 3Q21 9M20 9M21 As a result of revenue pressure and prudent risk management, 3Q21 net profit declined by 7% QoQ. YoY improvement was mainly from lower in provisioning. • Net profit in 9M21 dropped by 14% YoY. 20 20#21Coverage by stage Distribution of Risk Provision *Remark LLR Ratio (%) 132% 131% 124% 125% 114% 121% 51.97 53.80 54.42 53.92 48.37 Allowance for ECL (THB billion) 44.37 10.12 11.13 12.59 12.45 Stage 1 11.31 9.85 Stage 2 21.92 21.62 21.00 21.71 17.14 19.63 Stage 3 17.39 17.43 19.22 21.76 20.83 19.76 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Coverage by stage Stage 1 0.8% 0.9% 0.9% 0.8% 1.0% Stage 2 13.1% 14.8% 17.7% 18.5% 18.0% 1.0% 18.1% +23 bps from 2Q20 +464 bps from 2Q20 Stage 3 43.4% 45.6% 47.3% 49.3% 47.1% 44.1% +75 bps from 2Q20 tub • • TTB remains prudent in asset quality management. We continues to prudently manage and de-risk weak loans in both stage 2 and stage 3. While strategically slowing down NPL sales to preserve NPL value, in 3Q21 we did a write-off to improve stage 3 quality. As a result, stage 3 portfolio was more collateralized compared with 2Q21. Due to the write-off, allowance for ECL (ECL from model + Management Overlay) as of Sep-21 slightly dropped to THB 53.9 bn. Overall, the LLR by stage increased across all stages when compared to pre Covid-19, reflecting the Bank's tightening ECL model and prudent risk management. Note: * Allowance of stage 3 is presented on a net basis to be in line with the industry * LLR as of Dec-20 at 131% represented changed in accounting report from gross basis to net basis to be in line with the industry 21#22Accrued interest reflecting conservative approach 1st phase of debt relief (Full lockdown) Accrued interest • 3rd phase of debt relief (partial lockdown) 9,209 7,522 7,145 7,130 7,232 tub 6,442 7,720 6,440 2,759 5,143 6,444 6,497 6,793 Accrued Int. Stage 1 & 2 Accrued Int. Stage 3 2,036 723 1,300 1,489 1Q20 2Q20 3Q20 1,082 4Q20** 701 634 439 1Q21 2Q21 3Q21 Given the current unfavorable economic conditions, the Bank took conservative approach in revenue recognition for accrued interest treatment during the pandemic. Since 1Q21, stage 3* accrued interest has been provisioning at full-amount to preemptively limit future downside risk. We believe this will help improve quality of balance sheets and the risk in overstated net interest income. • Overall, total accrued interest uptick QoQ was mainly due to 2-month skip payment from BoT's 3rd phase but the trend dropped from the peak in 3Q20 after customers exit 1st phase of relief scheme. Remark: *Stage 3 originated in 2021 : **4Q21 accrued interest was restated and presented net from allowances for expected credit loss to be comparable with 2021 22 22#23Prudent actions to strengthen portfolio quality Loan Classification (%) NPL Ratio/Stage 3 Pre-Covid-19 19 1.60 tn 1,427 bn Stage 1 Stage2 Stage 3 14.3% 1.50 tn 1.49 tn 1,346 bn 1,328 bn 89.0% Stage 1 89.5% Stage 1 89.1% Stage 1 8.3% Stage 2 7.6% Stage 2 7.9% Stage 2 2.76% Stage 3 2.89% Stage 3 2.98% Stage 3 132 bn 115 bn 118 bn 44.1 bn 43.5 bn 44.4 bn Mar-20 Stage 2+3 177 bn Jun-21 158 bn Sep-21 2010 163 bn TFRS9 tub 2.76% 2.75% 2.89% 2.98% 2020 Mar Jun Sep 2021 • • • • After the 1st wave of Covid-19 in 2020, TTB proactively resolved NPLs to clear up headroom for headwinds in 2021. We has also continued to de-risk weak loans in stage 2 to improve portfolio quality. As a result, stage 2 loan outstanding decreased to THB 118 bn or 7.9% of total loans as of Sep-21, compared to THB 132 bn or 8.3% as of Mar-20, a pre-Covid level. Stage 3 loan was at THB 44.4 bn. Stage 3 ratio rose to 2.98% due mainly to slow loan growth and uptick in stage 3. The increase in stage 3 was a combination of slow NPL resolution and a stage 2 de-risking activities. In all, asset quality remains in line with guidance and relatively low when compared to peers. TTB will continue to improve stage 2 while stage 3 is expected to persist from both NPL trend and our intention to slow NPL resolution activities to preserve NPL value from higher supply in the market. 23#24Reinforce capital position with wider buffer over requirements CET 1 4Q20 Solid Capital with ample buffer over requirement 14.4% 14.6% CET 1 3Q21 19.7% +4.1% 15.6% + 1% Tier 2 AT1 issued in Nov-19 TIER 1 3Q21 CET1 THB 166 bn TIER1 THB 178 bn THB 176 bn THB 188 bn RWA THB 1,217 bn THB 1,208 bn *prelim data for 3Q21 CAR 3Q21 Tier 1 minimum requirement 8.5% CAR minimum requirement 11.0% • tub We remain strongly capitalized, enabling the Bank to withstand the uncertainty ahead. Due to Economic headwind impacted from Covid-19 pandemic, the Bank reinforced solvency ratio with organic capital generation and balance sheet optimization, reflecting higher buffer Tier 1 and lower in credit RWA. • Total Tier1 at 15.6% has not included the roll in effect of 1H21 profit. 24 24#25Relief Program Update 3Q21/9M21 Performance & Asset Quality Post-EBT update tub 25#26Our transformative journey towards the recommended bank of choice by our customers Utb 26 26 Covid-19 debt relief Integration Business transformation Dec 2019: Merger transaction closing 2020 Supported our customers thru Covid-19 pandemics while monitoring portfolio health Merged the two businesses Harmonized two corp. cultures Captured synergy quick wins (e.g., cost and balance sheet) Jul 2021: becoming one legal entity thru EBT 2021 Continue to support our customers in need of help Proactively manage flow to NPL and enhance recovery from stage 2/3 Launch rebrand Complete EBT steps O Revamp existing digital platform Double down on capturing short/medium term synergies (e.g., cross-selling) 2022-23 Maximize the potential of the merged bank's 10mn customer base thru: • • • Financial well-being as guiding principle Sharper proposition addressing banking and beyond banking needs of our targeted customers Top tier digital platform Fully operate under ‘Digital firsť principle, allowing better customer experience, higher agility and leaner cost base The recommended bank of choice by our customers#27What's next? 2Q21 3Q21-4Q21 • Rebranding launch • Established one brand with philosophy "Make REAL Change" Bank's financial well-being = customer's financial well-being • Complete EBT in July 2021 • • Mindful Spending & Start/Maximize Saving Healthy Borrowing Investing for Future Sufficient Protection New product development/repackage for better customer's financial well-being (e.g., ttb Reserve, new TSP, Smart Protect) Revenue synergy to start kick-in via our flagship products • • 2022 onwards tub Launch new digital platform and proposition for retail, enabling digital-first operating model Continue to develop and offer financial well-being solutions to engage customers by life- stage and life-event Realize revenue synergy from larger base of customers after the merger 27 27#28Disclaimer: The information in this material is in summary form and does not purport to be complete. No representation or warranty, express or implied, is or should be made concerning, and no reliance should be place on, the accuracy, fairness, or completeness of this information and liability therefore is disclaimed. TTBThanachart Bank Public Company Limited (the "Bank" or "ttb" or "TTB") does not independently verified, approved or endorsed the information contained herein, or undertakes to update or revise any information, whether as a result of new information, future events or otherwise. The material to be presented may contain certain forward-looking statements and information regarding the Company that reflect current views and/or expectations of the Company with respect to its performance, business and future events. Statements relating to achieving certain goals are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Past performance does not guarantee or predict future performance. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, currency exchange rates, competition from other companies, shifts in customer demands, customers and partners, changes in operating expenses including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. You are cautioned not to place reliance on these forward-looking statements, which are based on current view of the management on future events. The Company does not assume any responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for, sell or purchase any securities. Neither this material nor anything contained herein shall form the basis of any contract or commitment whatsoever. The recipients of this presentation should not make any investment or business decision or take actions in reliance on the information and statements contained in this presentation and must conduct their own investigation and analysis of the contemplated transaction and the information and data contained herein. This presentation is being made available on a confidential basis and intended only for the recipients, and may not be copied, reproduced, retransmitted or distributed by a recipient to any other persons in any manner. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the foregoing limitations and conditions. ทีเอ็มบีธนชาต TMBThanachart ttbbank.com 1428 f LINE Ο in Make REAL Change