#1K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK Investor Presentation as of 1Q22 (Updated Economic Data) June 2022 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 March 2022) Assets Loans* Deposits CAR Bt4,133bn (USD124.3bn) Bt2,458bn (USD73.8bn) Bt2,634bn (USD79.1bn) 18.34% *** 9.30% **** Ranked #3 with 16.4% market share** Ranked #2 with 16.5% market share** Ranked #3 with 16.9% market share** Mamber of Dow Jones Sustainability Indices Powered by the S&P A Sustainability Award Gold Class 2022 S&P Global FTSE4Good ROE ROA 1.09% Number of Branches 833 Number of E-Machine (ATM/RCM) 10,972 Number of K PLUS Users 17.7mn Number of Employees 18,835 KBANK, KBANK-F Bt30.2bn (USD0.9bn) Share Information SET Symbol Share Capital: Authorized Issued and Paid-up Number of Shares Market Capitalization 1Q22 Avg. Share Price: KBANK KBANK-F EPS BVPS Notes: Bt23.7bn (USD0.7bn) 2.4bn shares Bt382.7bn (USD11.5bn) Ranked #2 in Thai banking sector Bt155.23 (USD4.66) Bt155.02 (USD4.66) Bt4.58 (USD0.14) Bt199.48 (USD5.99) * Loans Loans to customers less deferred revenue ** 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 March 2022 *** 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 **** 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 Exchange rate at the end of March 2022 (Mid Rate) was Bt33.30 per USD (Source: Bank of Thailand) บริการทุกระดับประทับใจ 1 2#2K KASIKORNTHAI Table of Contents ■ Operating Environment ■2022 Financial Targets ■The K-Strategy Financial Performance ■Capital and Dividend ■Summary ■ Appendix K KASIKORNTHAI Appendix KBank Strategy Business Highlights Risk and Credit Management Financial Performance 1Q22 Highlights Interest Income - net Topic บริการทุกระดับประทับใจ Topic Non-interest Income • Net Fee Income Other Operating Expenses Loan • Asset Quality Investment in Securities and Funding Structure The Wholly-owned Subsidiaries Muang Thai Life Assurance (MTL) ➤ Other Information ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page 5-6 7-8 9-10 11 - 18 19-20 21 22-176 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page 23-52 53-64 65-78 79-96 80-82 83 84 85-86 87 88-89 90-92 93-96 97-104 105-113 114-126 127-136 137-153 154-174 175-176 บริการทุกระดับประทับใจ ■Banking System and Regulations Update ■Government Policy ■Thai Economic Figures ■IR Contact Information and Disclaimer 3 4#3K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2022 % YoY Key GDP Forecasts and Assumptions 1.5 2.9 10.0 2.2 0.0 -10.0 -6.2 2019 2020 2021 2022F Key Points: ■KResearch upgraded 2022 economic growth forecast to 2.9% from 2.5%, mainly due to better-than-expected recovery of foreign tourist arrivals ■Rising inflation would remain the key threat for the Thai economy ■Elevated commodity prices, less government subsidy and higher cost pass-through would drive headline inflation to around 6.0% ■Waning global economic momentum would put downward pressure on Thai export sector ■Thai GDP may return to its pre-COVID-19 level in 2023 Risk Factors: ■Global economic slowdown % YoY 2022F* (Previous) 2022F* 2019 2020 2021 Base Case Base Case GDP 2.2 -6.2 1.5 2.5 2.9 Private Consumption 4.0 -1.0 0.3 1.7 2.9 Government Consumption 1.6 1.4 3.2 -0.2 -1.0 Total Investment 2.0 -4.8 3.4 2.8 2.6 - Private investment 2.6 -8.2 3.3 2.8 3.0 - Public investment 0.1 5.1 3.8 4.4 2.7 ■Fed rate hike cycle and Thai Baht volatility Gov't Budget Deficit (% of GDP) -2.9 -5.2 -4.8 -4.9 -4.9 Exports (Customs Basis) -2.6 -5.9 17.4 3.4 7.8 Imports (Customs Basis) -4.8 -12.7 29.5 7.4 14.5 Current Account (USD bn) 38.0 21.2 -10.6 -3.7 -6.8 ■Escalated inflationary pressure ■Russia-Ukraine crisis ■Household and business balance sheet deterioration Headline Inflation 0.7 -0.8 1.2 4.5 6.0 ■New variant of COVID-19 Policy Interest Rate** 1.25 0.50 0.50 0.75 1.00 Notes: MPC's policy rate is at 0.50% (as of June 8, 2022) COVID-19 Vaccination of Thailand (June 27, 2022): First dose 81.9%, Second dose 76.4%, Third dose 42.4% of targeted people*** represents a higher base case assumption, comparing with the previous forecast, represents a lower base case assumption, comparing with the previous forecast Source: *KResearch (as of June 28, 2022 vs forecast on March 25, 2022) **KBank Capital Markets Research (as of June 16, 2022) *** Ministry of Public Health บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2022 ■Global Economy ■Government Stimulus Plan ■Inflation ■Exports and Tourism ■Fed Policy Normalization ■ Baht Outlook ■Global economy: Global economy is expected to decelerate in 2022 amid ongoing Russia-Ukraine tensions, China's economic slowdown and the move towards tightening monetary policy by the central banks around the world ■US: US economy is expected to grow at a slower rate amid ongoing risks from surging inflation, supply chain bottlenecks, and Fed's aggressive tightening ■ Eurozone: Eurozone economy is expected to grow at a slower pace, given the Russia- Ukraine tensions, rising inflation, supply chain bottlenecks and tightening policy ■China: Chinese economy will continue to face strong headwinds due to strict zero-COVID policy, property market slump, and global economic slowdown ■ ASEAN economies: ASEAN economies on track to rebound in 2022, supported by reopening of economic activities. However, the Ukraine crisis and slower global economic growth momentum together with capital market volatility could pose risks to the economic recovery of ASEAN countries ■The government has limited space for additional stimulus while they may be less inclined to borrow more, given that they expect the economy will continue on its recovery path, driven by a rebound in tourism sector ■Inflation is expected to rise to 6.0% on the back of elevated commodity prices in the global market, higher cost pass-through on consumers across the CPI basket and less government subsidy on energy prices ■ Exports will grow at a slower pace in the 2H22 due to sluggish momentum of the global economy ■Tourist arrivals will significantly recover from last year. Overall number of tourist arrivals is estimated at 7.2 million persons for this year ■The Fed increased its interest rate by 75bps to 1.50-1.75% in June 2022, instead of 50bps initially expected, after U.S. inflation rate in May unexpectedly accelerated to 8.6% YoY, 41-year high. The Fed also signaled more interest rate hikes to curb inflation ■Baht continues to weaken above Bt34 per USD amid strong USD as sign of more Fed's tightening policy At the end of 2022, Baht would reach 33.50 per USD as improvements of Thai economy and current account surplus from a recovery of tourism ■Also, BOT would raise its interest rate in 3Q22, mainly due to inflation concern, supporting Baht and narrowing interest rate gap Source: KResearch and KBank Capital Markets Research (as of June 28, 2022) บริการทุกระดับประทับใจ Possible Impacts to Thai Economy ■Thai economy is highly vulnerable to rising inflation and fading global economic growth ■Stimulus measures may help alleviate consumers burden for only some period of time amid persistent inflation. Stimulus measures may not be able to help much ■High inflation could drive up the cost of producers and deteriorate purchasing power of consumers ■Strong rebound in tourism sector would give a boost to the Thai economy ■Rising Thai inflation, global tightening pressures and interest rate gap will force the BOT to raise its interest rates twice this year, once in 3Q22 and once 4Q22 High fluctuation in USD/THB puts more pressure towards inflation via oil imports and makes revenue management more difficult for exporters and importers ■However, global trade remains supportive of Thai exporters' revenue and investment 5 6#4K KASIKORNTHAI 1Q22 Financial Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Consolidated NIM 2021 Actual 1Q22 Actual Y2022 Targets Notes 3.21% 3.19% 3.15-3.30% 1Q22 NIM increased YoY, mainly due to higher yield on loans and lower cost of funds 1.51% YTD Loan Growth 7.88% 6-8% 6.77% YoY Net Fee Income 7.01% -6.36% YoY Growth* Cost to Income 43.49% 42.82% Ratio** Credit Cost per year 173 bps 153 bps (bps) NPL Ratio (Gross)*** 3.76% 3.78% ROE**** ROA 8.44% 0.98% 9.30% 1.09% 1Q22 YTD loans grew mainly from corporate business. 1Q22 Net fee income decreased from relatively large base Flat growth in 1Q21; mainly from fund management business inline with market condition. 1Q22 Cost to income increased YoY from higher Low to operating expenses (mainly from IT and Marketing), though net total income increased. Focus on cost Mid-40s management and productivity improvement, with new investments for future growth. Credit Cost: Inline with target. Continuous prudent Up to 160 bps consideration on factors amid the economic growth that remains uncertain from COVID-19 situation and global economic outlook. Asset quality is manageable with closely monitored and constantly reviewed. Relief measures help limit short-term impact on asset quality, while focusing more on comprehensive debt restructuring. 3.7-4.0% 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 7 K KASIKORNTHAI Y2022 Financial Targets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK NIM Consolidated Loan Growth 2021 Actual 2022 Targets 3.21% 3.15 -3.30% 7.88% 6-8% Net Fee Income Growth* 7.01% Cost to Income Ratio** 43.49% Credit Cost per year (bps) 173 bps NPL Ratio (Gross)*** 3.76% ROE**** ROA 8.44% 0.98% Flat growth Low to Mid-40s Notes (Y2022) Maintain NIM from small ticket size lending strategy; remain cautious with COVID19 situation; stable interest rate outlook Loans increase from small ticket size (retail and SME) lending, using effective data analytics capability; ongoing regional expansion strategy Net fee income growth may decrease from lower conventional transaction fees mainly caused by changing consumer behavior; relatively large net fee income base in the year before; subject to market condition Moderate revenue growth due to a mild economic recovery while projecting higher potential investment expenses for future growth; continuing cost management and productivity improvements Credit Cost: Prudent policy, maintain conservative assumptions Up to 160 bps on COVID19 situation; credit cost remains stable 3.7-4.0% N/A N/A NPL: Proactive asset quality management, utilizing effective data analytics to monitor asset quality; asset quality will slowly recover, in line with mild economic recovery 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 KASIKORNBANK "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 Purpose ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK To Empower Every Customer's Life and Business ESG Sustainability Beyond Banking & Innovation Strong Brand Sustainable Development PAY: Growth Strategy Dominate Digital Payment Key Capabilities 1. Ecosystem Partnership & Harmonized Channel 5. Data Analytics Reimagine Commercial & Consumer Lending Democratize Investment & Insurance Strengthen Harmonized Sales and Service Experience Improve Value-Based Productivity 8 TRANSFORMATION JOURNEYS 2. Intelligent Lending 6. Cyber Security 3. Proactive Risk & Compliance Management 7. Performing Talent and Agile Organization บริการทุกระดับประทับใจ Penetrate Regional Market 4. Regional Payment & Settlement 8. Modern World Class Technology Capability 9 10#6K KASIKORNTHAI Relief Measures to Lessen COVID-19 Impact ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Relief measures (the government, the BOT, and KBank) have been offered to help customers through the COVID-19 pandemic. Relief measures help limit short-term impact on asset quality, while focusing more on comprehensive debt restructuring. Total Loans Bt2.4trn Loans Exited Relief Programs Bt491bn or 20% 13% of Total Loans Able to Pay Total Loans Bt2.5trn Bt444bn or 90% Loans Exited Relief Programs Bt538bn or 22% Able to Pay Bt484bn or 90% Loans in Relief Programs Bt322bn Retail Bt108bn or 13% Days Past Due (>30 days) Bt47bn or 10% Corporate Bt82bn Able to Pay Bt302bn or 94% SME Bt132bn As of December 2021 Days Past Due (>30 days) Bt20bn or 6% Loans in Relief Programs Bt250bn or 10% 10% of Total Loans Retail Bt68bn Corporate Bt64bn Days Past Due (>30 days) Bt54bn or 10% Able to Pay Bt213bn or 85% SME Bt118bn Days Past Due (>30 days) Bt36bn or 15% As of March 2022 Note: 1) Loans in Relief programs as of June 2020, amount of Bt828bn, or 39% of total loans; as of December 2020, amount of Bt429bn, or 19% of total loans. 2) More details can be found in Investor Presentation in previous quarters. บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Customers in BOT Comprehensive Debt Restructuring % to Total Loans 40% Bt861bn Retail Bt219bn 13% 10% Bt322bn Corporate Bt137bn Retail Bt108bn Bt250bn Retail Bt68bn Back to normal SME Bt505bn Corporate Bt82bn Corporate Bt64bn Likely to require BOT 11 September 2020 SME Bt132bn December 2021 SME Bt118bn March 2022 Comprehensive Debt Restructuring Program Bt193bn* 50-80% in blue scheme * Estimated from customers in relief program, and subject to inflow and outflow of loans Note: The BOT comprehensive debt restructuring in blue scheme is the restructuring arrangement with conditions to reduce debt repayment burdens. บริการทุกระดับประทับใจ 12#7K 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 Bt bn 2,458 Consolidated Amount (Bt bn) 1Q22 1Q22 Y2022 2,422 2,800 1,914 2,002 2.245 Dec 21 Mar 22 Loan Growth Yield Range Loan Growth Target 2,400 Corporate 2,000 34% (%) (%) 34% 36% SME Corporate Loans 816 840 2.8% 2-4% 1,600 36% 34% SME Loans 793 806 1.7% 5-7% 1,200 339 Retail 359 34% 339 33% Retail Loans 711 702 (1.3%) 5-7% 800 Others 400 25% 28% 28% 29% 29% Other Loans 0 4% 4% 3% 4% Total Loans 101 2,422 111 9.3% 2,458 1.5% 4.8% (%) 1-3% 4-6% 9-11% 6-8% 2018 2019 2020 2021 1Q22 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. 1Q22 2022 Outlook Corporate Loans SME Loans Retail Loans ▪ Loan portfolio slightly grew from short-term lending ▪ KBank provided relief measures to corporate customers in a timely manner ■ SME loans grew slightly, mainly from small enterprises and self- employed customers through "Self-Apply" via digital channels; also, from certain industries which use data analytics to enhance their credit model. ■ Continued use of data analytics to enhance predictive model and credit process in order to lend intelligently with acceptable risk ▪ Retail loans decreased due to the seasonality of credit card utilization, which is the payback time for tax-saving funds purchased in 4Q21 and amount of new bookings of Home Loan products resulting from market competition ■ Personal Loan grew from "small-pocket" customer segment onboarding through the "Self Apply" digital channel ■ Continued use of data analytics to enhance predictive model and credit process in order to acquire new customer segment with acceptable risk. ■ Potential loan growth in some sectors to support business opportunities ▪ KBank continuously provides assistance to corporate customers affected by COVID-19 pandemic ■ Grow prudently in line with market situation still recovering from COVID-19 pandemic ■ Continuous focus on small enterprises and self-employed customers with various product offerings matched to their needs. Offer products through digital channels with risk-based pricing and risk-based offering ▪ Use data analytics to expand credit opportunities in specific industries, i.e. Online/ Offline Merchant, Contractor, Agriculture Trader, and Restaurant ■ Maintain lead position in consumer market and be 1st in customers' minds Grow prudently in line with market situation still recovering from COVID-19 pandemic ■ Focus on lending by using data analytics to offer products and promotions aligned with customer needs ■ Focus on "small-pocket" customers with acceptable risk, proactive monitoring, and controls on loan portfolio quality Loan Definition Corporate Loans: Loans of KBank and KBank's Subsidiaries in Corporate Segments (annual sales turnover > Bt400mn) SME Loans: Loans of KBank and KBank's Subsidiaries in SME Segments (annual sales turnover < Bt400mn) Retail Loans: Loans of KBank and KBank's Subsidiaries in Retail Segments บริการทุกระดับประทับใจ Other Loans: Composed of loans through the insurance business (MTL), regional markets, and other loan types not directly attributable to the main business groups. Before Y2020, other loans were loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) reclassified to their customer segments. 13 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Composition of Growth: Net Fees and Non-interest Income March 2022 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio (%) (Bt bn) 154.89 163.35 155.48 160.49 200 (-1%) (+3%) (-3%) (+5%) 1 50 40 37% 36% 150 30% 27% 30% 37% 36% 40.61 30 25% 27% 23% 21% 22% 100 20 1 (+1% YOY) 73% 10 50 63% 64% 70% 22% 0 78% 0 2018 2019 2020* Non-interest Income Ratio 2018 2019 2020 2021 1Q22 Net Interest Income Non-interest Income (Bt bn) 70 65 56.95 57.80 60 (-9%) (+2%) Non-interest Income 22% 22% 2021 1Q22 ■Net Fee Income Ratio Net Fee Income Other Operating Income ■Fee and Service Income - net 45.87 43.96 (Bt bn)38.12 (-21%) (-4%) 3% Net Premium Earned - net 40 (-8%) 36.74 (-4%) 33.00 35.32 (+7%) (-10%) 30- ■Dividend Income 55 3% 50 45 40 67% 35 30 64% 72% 25 80% 20 | 8.86 0.1% 5% 15 6% 4% 15% (-25% YoY) Gain on Investment 5% 16% 14% 5% 18% 10 2% 13% 100% 10% -0.6% -0.4% -0.2% 0 -0.3% -21% Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) 0 1Q22 2018 2019 2020* 2021 1Q22 Share of Profit from Investments on Equity Method 20 I 8.83 1 (-6% YoY) ■1Q22 both non-interest income and net fee income accounted for 22% of total net operating income; non-interest income decreased 25% YoY, mainly due to net premiums earned - net, the mark to market of financial assets according to market condition, and net fee income. ■Net fee income decreased 6% YoY from relatively large base in 1Q21; mainly from fund management business in line with market condition. -5 2018 2019 2020*-4% 2021 - Non-interest Income Ratio = Non-interest Income/Total Operating Income - net Note: - Net Fee Income Ratio = Net Fee Income / Total Operating Income - net - 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 Asset Quality and Expected credit loss (Provision) March 2022 (Consolidated) Expected credit loss (Provision) During 1997 (Bt bn) Asian Crisis* 54 50.6 48 44.1 42 36 30 24 16.8 18 12 62.3 141.4 127.1131.8 134.5 130.0 111.0 Coverage Ratio During 1997 Asian Crisis* (%) 150 41.8 43.5 40.3 33.8 32.534.0 100 26.4 14.2 11.7 6.7 7.3 8.4 0.7 50 34.7 9.3 48.8 25.4 30.0 34.2 0 160.6 148.5 130.9 48.6149.2 159.1158.3 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1022 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1022 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 44522505 42.0 723 31.7 35 30 23.5 NPL was peak at 287 42.3% in 1Q99 15 15.9 10 44 5.1 0 NPL Ratio and Credit Cost ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK I Asset quality remains manageable; closely monitored and constantly reviewed. NPL ratio in 1Q22 was at 3.78%, with coverage ratio of 158.33%. 1Q22 credit cost was 153bps, in line with target. Continuous prudent consideration on factors amid the economic growth that remains uncertain from COVID- 19 situation and global economic outlook. (bps) 900 NPL ratio Credit Cost 700 500 239 204 168 300 205 66 64 14 96 85 66 2.91 2.45 2.16 2.11 2.24 2.70 3.32 3.30 3.34 175 174 3.65 3.93 3.76 3.78 173 153 100 NPL Ratio by Business Corporate Business SME Business -100 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2021 1Q22 Retail Business*** 2017 2021 2018 2019 2020 1Q22 <2% <2% <2% <2% <2% <2% -5% -5% -6% <7% <7% <7% -4% -4% -4% <5% <5% <5% 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 K KASIKORNTHAI ROA and ROE March 2022 (Consolidated) ROA บริการทุกระดับประทับใจ (%) 24 ROE** ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (%) 2.5 20 2.0 16 1.5 1.27 10.61 1.20 12 9.90 0.98 1.09 8.44 9.30 0.85 7.10 1.0 8 0.5 4 0.0 0 ROA (%) ROE (%) 2018 2019 2020* 2021 1Q22 2018 2019 2020* 2021 1Q22 2018 2019 2020 2021 1Q21 1Q22 4Q21 1Q22 1.27 1.20 0.85 0.98 1.14 1.09 0.97 1.09 10.61 9.90 7.10 8.44 9.57 9.30 8.70 9.30 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 15 16#9K KASIKORNTHAI Net Interest Margin March 2022 (Consolidated) NIM (%) 8.00 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Yield on Earnings Assets and Cost of Fund (%) 6.00 5.29 5 5.21 4.82 4.71 4.76 4 4.27 3.39 3.31 4.19 Yield on Loans 3.27 3.21 3.19 3.83 4.00 3.641 3.61 3 Yield on Earnings Assets 2 2.00 1.19 1.23 1 0.78 0.59 0.57 Cost of Fund 0 1.11 1.14 Cost of Deposits* 2018 2019 2020** 2021 1Q22 0.00 0.71 0.54 0.52 2018 2019 2020* 2021 1Q22 NIM was 3.19% in 1Q22, increasing YoY, due to higher yield on loans and lower cost of funds. ■ High portion of CASA (82%) also helped support low cost of fund. 2018 2019 2020 2021 1Q21 1Q22 4Q21 1Q22 NIM (%) 3.39 3.31 3.27 3.21 3.16 3.19 3.15 3.19 Yield on Earnings Assets (%) 4.27 4.19 3.83 3.64 3.59 3.61 3.58 3.61 Yield on Loans (%) 5.29 5.21 4.82 4.71 4.56 4.76 4.65 4.76 Cost of Fund (%) 1.19 1.23 0.78 0.59 0.60 0.57 0.59 0.57 Cost of Deposits (%), incl DPA 1.11 1.14 0.71 0.54 0.55 0.52 0.53 0.52 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 K KASIKORNTHAI Cost to Income Ratio March 2022 (Consolidated) Cost to Income Ratio ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Cost to Average Assets Ratio (%) (%) 50 43.96 45.32 45.19 43.49 1 42.82 6 40 4 30 2.26 2.26 2.01 1.83 1.69 20 2 10 0 0 2018 2019 2020* 2021 1Q22 2018 2019 2020* 2021 1Q22 1Q22 cost to income ratio was 42.82%, increased YoY from an increase in other operating expenses (mainly from IT and Marketing), though net total income increased. Focus on cost management and productivity improvement, with new investments for future growth. Cost to Income Ratio (%) Cost to Average Assets Ratio (%) 2018 2019 2020 43.96 45.32 45.19 2021 43.49 1Q21 1Q22 4Q21 1Q22 41.30 42.82 48.16 42.82 2.26 2.26 2.01 1.83 1.78 | 1.69 2.01 I 1.69 17 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 18#10K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Capital (Reported Number: Excluding Net Profit of Each Period) March 2022 (Consolidated) Bank only KASIKORNBANK FINANCIAL CONGLOMERATE* Note: Basel III Basel III (%) 17.26 18.52 17.74 17.83 17.44 18.32 18.0 18.0 15.0 2.51 3.58 2.80 2.41 2.11 2.42 19.62 3.43 18.77 15.0 18.80 2.67 2.28 0.65 AT1 1.03 AT1 18.34 1.99 1.04 AT1 12.0 0.68 AT1 1.10 AT1 1.09 AT1 12.0 9.0 14.75 14.94 6.0 14.94 15.42 15.33 9.0 15.90 16.19 16.13 16.49 16.35 6.0 3.0 3.0 0.0 0.0 2018 2019 Tier1 2020** 2021 Tier2 AT1 1Q22 2018 2019 Tier 1 2020** Tier2 2021 1Q22 ■ AT1 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. Additional Tier 1 instrument issuance is intended to optimize and further strengthen capital base in long run. 2017 2018 2019 2020 2021 1Q22 Bank only CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period KASIKORNBANK FINANCIAL CONGLOMERATE* CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period 17.20 17.26 18.52 17.74 17.83 17.44 14.62 14.75 14.94 14.94 15.42 15.33 17.96 15.66 18.32 15.90 19.62 16.19 18.80 16.13 18.77 16.49 18.34 16.35 * 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). K KASIKORNTHAI Dividend Dividend Per Share บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Dividend Payout Ratio 5.00 (Bt) 5.0 4.00 4.00 4.00 4.00 4.00 3.50 4.0 3.00 3.0 2.50 2.50 2.50 2.00 2.0 (%) 50 42.49 3.25 40 32.33 32.80 34.43* 32.14 27.83 2.50 27.00 22.32 26.96 29.40 30 22.12 23.73 23.91 20 22.51 1.0 10 0.0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Interim Dividend 19 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. Dividend Per Share (Bt) Dividend Payout Ratio (%) Note: 2008 2.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 2020 2021 2.50 2.50 2.50 3.00 3.50 4.00 4.00 4.00 4.00 4.00 4.00 2.50 3.25 32.33 42.49 32.14 27.00 22.12 22.32 22.51 27.83 26.96 32.80 29.40 29.40 23.73 23.91 * The Board of Directors' Meeting of KASIKORNBANK PCL. No. 1/2020, held on January 30, 2020 has approved the share repurchase project for financial management purposes with the number of shares to be repurchased not exceeding 23,932,601 shares or equal to the amount of not exceeding 1% of the total paid-up capital of the Bank and the maximum amount not exceeding Bt4,600mn. The share repurchase was conducted through the Stock Exchange of Thailand during February 14, 2020 to February 27, 2020. - In 2020, due to the high uncertainty in the near future, the BOT supported the preventive measures by allowing financial institutions to suspend payment of interim dividend from Y2020 operating performance and to pay dividends for Y2020 not exceeding Y2019 payout ratio and 50% of Y2020 net profit. - In 2021, as banks are strong with sufficient capital to withstand a high level of uncertainty ahead, the BOT allowed bank to pay Y2021 interim dividend and Y2021 dividend not exceed 50% of 1H21 and Y2021 net profit, respectively. - 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 20 20#11K KASIKORNTHAI Summary ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■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 and loans relief measures; 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 COVID-19 and uncertainties of global economy. Additional Tier 1 instrument issuance is intended to optimize and further strengthen capital base in long run 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 K KASIKORNTHAI Appendix ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 21 24 บริการทุกระดับประทับใจ 22 22#12K KASIKORNTHAI KBank: Strategy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK บริการทุกระดับประทับใจ K KASIKORNTHAI Performance ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■ 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) 23 23 K+ K PLUS Users and Transactions** (mn) 20 20.0 19.5 (+2.6%) 15 17.7 16.0 16.5 15.0 25,000 20,710 20,000 14,516 15,000 8,477 10 5,188 17.1 I 10,000 3,052 14.4 12.1 4,323 5,990 5 10.0 7.3 5,000 15.0 17.7 0 0 2017 2018 2019 2020 2021 1Q21 1Q22 2017 2018 2019 2020 2021 1Q22 Total Users Number of Transactions (RHS) 15 10 2250 * Customers in Retail Business account for 93%, SME Business 7%, and Corporate Business less than 1% of customer portfolio ** Active users defined as minimum of 1 Login per month; 74% active users as of 1Q22 Net Promoter Score (NPS)*** (#1 among Banks in Thailand) 100 50 35 0 2020 63 2021 *** NPS Study 2021 surveyed by The Nielsen Company during August to November 2021, measuring the willingness of customers to recommend a company's products or services to others บริการทุกระดับประทับใจ 224#13K KASIKORNTHAI The K-Strategy ■ K-Strategy is reimagined to drive growth and empower customer Purpose Sustainable Development ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK To Empower Every Customer's Life and Business ESG Sustainability Beyond Banking & Innovation Strong Brand Growth Strategy PAY: [[]] Dominate Digital Payment Key Capabilities 1. Ecosystem Partnership & Harmonized Channel 5. Data Analytics Reimagine Commercial & Consumer Lending Democratize Investment & Insurance Strengthen Harmonized Sales and Service Experience Improve Value-Based Productivity 8 TRANSFORMATION JOURNEYS 2. Intelligent Lending 6. Cyber Security 3. Proactive Risk & Compliance Management 7. Performing Talent and Agile Organization บริการทุกระดับประทับใจ Penetrate Regional Market 4. Regional Payment & Settlement 8. Modern World Class Technology Capability K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Scale Up Six Growth Strategies to Strengthen Core Business (1/3) Reimagine Commercial & Consumer Lending A Marketing and Onboard Experience Improve conversion by reaching the right person at the right moment with frictionless onboarding B Risk-Based Pricing Balance risk & return on pre-defined offerings and proactive customer management C Cost-to-Serve (898) A Democratize Investment & Insurance Product Offerings with Competitive Return Offer the right products that fit each customer sub- segmentation, with competitive return & benefits B Optimize Sales & Service Channels Revisit Master RM sales model, leveraging data and technology to improve productivity and advisory services Explore new operating models to reduce cost per transaction (acquisition, servicing & collection) D Exploratory Credit Model C Differentiate credit models by industry/ sub-segment to find more qualified customers E - - Effective marketing campaign to acquire smaller segments through digital channels; explore integrated investment platform Effective CRM Activities and Privileges Engage customers with business and lifestyle activities; revisit WISDOM privileges with value differentiation to customers Effective Asset Quality Management Use data to upgrade asset quality management to reduce cost of credit บริการทุกระดับประทับใจ 25 25 26#14K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Scale Up Six Growth Strategies to Strengthen Core Business (2/3) PAY Dominate Digital Payment A Pay Anytime, Anywhere Empower pay anytime, anywhere borderless experience with variety of sources of funds across channels B Merchant Business Opportunities C D Enhance merchant business opportunities in domestic and international markets by enabling capability to accept universal sources of funds with meaningful reports Reliable Payment Solutions Enhance business' payment trustworthiness by providing reliable payment solutions fitting with ecosystem standards Best-in-Class Customer Experience in Cost Effectiveness Harmonized Sales & Services Experience A Leader Position in Mobile Platform Strengthen leader position in mobile platform as customers' main channel B Meaningful Ecosystems Embedding Embed in all meaningful ecosystems by expanding partners' selected ecosystems and global partners with E2E experiences C Best-in-Class Customer Experience Across Channels Harmonize customer experiences, build service culture across channels, and orchestrate experience centers while optimizing networks for sales, services, and branding Strengthen brilliant basics to deliver best-in-class customer experience in cost effectiveness บริการทุกระดับประทับใจ 27 27 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Scale Up Six Growth Strategies to Strengthen Core Business (3/3) Penetrate Regional Market A Aggressive Play Grow corporate lending portfolio aggressively in China & AEC B Mass Acquisition Play Acquire customers via transactional banking channels and business partners in China & AEC C Disruptive Play Accelerate digital lending and develop BaaS platform in China & AEC Improve Value-Based Productivity A E2E Product Cost Reduction Reduce cost per unit as well as migrate onboarding and service transaction to automation B Channel Cost Optimization Reduce total channel cost per transaction C Sales Productivity Improvement Increase sales by increasing coverage of potential customers and improve HROB current business D Enhance IT Effectiveness Improve IT project management to ensure delivery is on time and on budget; remodel IT for better cost saving and avoidance E Workforce Management Reskill and improve skills for the future บริการทุกระดับประทับใจ 28#15k KASIKORNTHAI New Capabilities to Enable K-Strategy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 8 Transformation Journeys are new capabilities to help "Empower Every Customer's Life and Business" To Empower Every Customer's Life and Business 1 Ecosystem Partnership & Harmonized Channel Orchestrating an ecosystems with partners and providing excellent experiences throughout the customer journey Regional Payment & Settlement Building and connecting cross- border payment capability 7 8 2 Intelligent Lending Leveraging customer data to offer personalized lending experience and achieve fair risk adjusted return Purposeful & Practical Leadership Data Analytics 5 Expanding data analytics capability to enhance business opportunity and operational efficiency 3 Proactive Risk & Compliance Management Proactively identifying potential risk and establishing loss prevention and detection Cyber Security 6 ■ Enhancing comprehensive cyber security Performing Talent and Agile Organization Modern World Class Technology Capability บริการทุกระดับประทับใจ K 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 South Korea China Lao PDR. Myanmar Japan Physical Footprint 29 29 Lao PDR. Cambodia Myanmar Vietnam Indonesia Japan China Note: Indonesia 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 Seven representative offices: Beijing, Kunming, Tokyo, Yangon, Ho Chi Minh, Hanoi, and Jakarta - One strategic partner: Maspion Bank in Indonesia - Global partners with 82 banks in 16 countries: 50 Japanese partner banks; 10 Chinese partner banks; 1 Hong Kong bank; 3 Korean partner banks; 13 ASEAN partner banks (in Vietnam, Indonesia, Lao PDR, Cambodia, Philippines, Brunei, Malaysia, Singapore and Myanmar); 4 European regional banks (in Germany, Italy and Russia) and 1 Indian Bank บริการทุกระดับประทับใจ Digital Platform X-Border Multi-Currency Settlement X-Border THB Direct Settlement X-Border Retail Payment Partnership AEC CB BANK VietinBanks A sea bank BCA BANK MASPION Hana Bank A+ HACHUN BARK AYA Bank 靜岡銀行 KEZ BANK Maybank CHUGOKU BANK 百十四 ...and others 30#16K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Penetrate Regional Market: KBank's Regional Digital Expansion via 3 Strategic Plays ■To achieve rapid regional digital expansion in AEC+3, KBank will use 3 strategic plays, each supporting the others, to build growth momentum and accelerate customer base development & financial return Strategic Plays DIGITAL LENDING & BANKING-AS-A-SERVICE End-to-end online high-yield credit capabilities with expansion to lending platform (BaaS: Bank as a Service) Disruptive Play Origination Monitoring Mass Acquisition Play CREDIT TECH Underwriting Credit Scoring Loan Booking Guarantee Collection Operation KBank & FI Partners MASS ACQUISITION WITH TRANSACTIONAL BANKING Customer acquisition through local platforms with engagement via transactional banking Business K-Cyber Banking EDC & PGW Ecosystem Partners AGGRESSIVE CORPORATE LENDING Retail K+ ATM / Agent Aggressive lending by capturing four main customer groups Aggressive Play Customer Group Locally Listed Companies Local Large Corporates TDI AEC+3 2022 Strategic Actions Accelerate digital lending and develop BaaS platform Digital value chain financing ecosystem and Better Me lending Digital lending and BaaS platform Acquire customers via transactional banking channels and business partners Value chain financing and online solo-lending K PLUS transactional banking Grow corporate lending portfolio aggressively Cross border VCF for corporates and lead arranger for Non-bank Fls Corporate lending and non-funded solutions to LLC, TDI and AEC+ Note: TDI = Thai Direct Investment; EDC Electronic Data Capture; PGW = Payment Gateway บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Strengthen Harmonized Sales and Service Experience Reshape channel mix and sales model according to evolving customer behavior, to deliver better experience and productivity 1 K PLUS as OPEN PAYMENT PLATFORM K+ and Authenticator (K-ID) Branch Harmonized LINE Channel Strengthen Optimize physical channel 2 network by maintaining coverage, resizing, and remodeling Banking Agent K-Cyber K-Corporate Connect digital marketing, develop digital/hybrid ATM/CDM onboarding 4 KCC complements digital channels by providing 3 Website RM/PS Contact TSA/DSA Center troubleshooting and educational digital service Enhance sales model to deliver total solution with best customer fit Note: KCC = K-Contact Center; RM = Relationship Manager; PS = Product Specialist, TSA = Tele Sale Agent, DSA = Direct Sale Agent บริการทุกระดับประทับใจ 31 32 22#17• K 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 SME Corporate Customers eWallet and Payment Partnership Grob EST Blue f rabbit YOUTRIP LINE MAN Wong LINE Ray 支 支付宝 ALIPAY WeCha Joint Venture for Co-Lending through LINE Platform LINE E-Commerce & Lifestyle Platform/Co-Lending through Partners' Platform Laz Retail 000 DCENTRAL COTH Dolfin Thel University and Hospital Chula Investment Platform LU ® Venture Capital* Ооквее HOW Grab N Jitta aspire WORKMATE digio Rate> NIUM HORGANICE DECENTRALIZED Robowealth cryptomind * Sendo favstay pawoon 出國大妏 CARRO PRIMS FoodStory 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 USD135mn 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. 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 Blockchain Offshore Fund, China Renaissance, Openspace Ventures, Do Ventures and StormBreaker. บริการทุกระดับประทับใจ 33 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank Unsecured Consumer Lending Landscape & Ecosystem Partnership Partnership & Ecosystem Going Forward S The Valuable Partners for Lending Laz • Different Credit Model by Industry Exploratory model Dolfin Digital Commerce TELCO Existing Credit Customer Existing Non-Credit New-to- KBank KBank x LINE LINE BK LINE) Social Media ECO SYSTEM Ecosystem Platform Credit Transaction Payment Transaction Social Media Telco Grab NCB* Debit & Wealth E- Commerce Ride-Hailing Embed into customer's everyday life application, platform and network owner Engage customers through simplified onboard process IMPROVE Interest (I) . More New and Qualified Customers with Risk- Willingness to pay based Pricing Risk- Based Pricing Qualified Lead Existing Qualified (Q) Ability to Pay Modular credit decision engine capable of providing higher approval rates without compromising risk Note: * NCB = National Credit Bureau บริการทุกระดับประทับใจ 34#18k KASIKORNTHAI Success Story of KLINE: Line BK Services 1Q22 Key Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK B0.00 Saving Accounts: 5.6mn 1.5% Special Rate Accounts: Debit Cards: Credit Line Accounts: 133K 2.4mn 600K Line BK Platform Users: 4.3mn Outstanding Loans: 18.0bn October 2020 LINE BK Launched October 2020 October 2020 - December 2021* February 2021 December 2021 Line BK Platform User 2mn users Outstanding Loans 5bn Line BK Platform User 3.9mn users Outstanding Loans 15.3bn 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. บริการทุกระดับประทับใจ 35 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Harmonized Channels: Domestic Channels and No. of Transactions 1,026 958 Branch (-21) (-6) 1 (-10*) 988 886 860 839 833 333 29 829 2017 2018 2019 2020 2021 1Q22 2022T E-Machine (ATM/CDM**) (-70) (+61) 1 (+87*) 11,891 11,985 10,973 10,981 10,911 10,972 10,998 2017 2018 2019 2020 2021 1Q22 2022T ** Cash Deposit Machine Mobile Banking Users (mn) Number of Transactions* *** K+ | (+4.0*) (+0.6) 1 1.5bn 8% (+2.7) 37% 2.0bn 2.7bn 3.8bn 5.4bn 1.6bn 5% 4% 2% 1% 1% 28% Branch 20% 13% 11% E-Machine 48% I 21.1 17.1 17.7 14.4 12.1 10.0 58% 68% 78% 86% 88% Mobile Banking 7.3 44% 2017 2018 2019 2020 2021 1Q22 2022T 2017 2018 2019 2020 2021 1Q22 * Compared to Year-ended *** Transaction includes only cash deposit, cash withdrawal, payment and transfer บริการทุกระดับประทับใจ 36#19K KASIKORNTHAI Domestic Channels New KBank Branch (Hybrid Branch), KBank ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Community Branch (K Park) THE WISDOM Lounge This new branch design focuses on increasing the flexibility and efficiency of the branch banking services. The service area and all furniture are specially designed to assist branch staff to smoothly facilitate customer's adoption of self-service machines and digital channels (K PLUS). The modular designed counter can flexibly accommodate various transaction types that flow in throughout the day. The community bank where local people able to spend their life comfortably all day! Focusing on the outskirts of the city is response to the expansion of more villages and schools. K Park provides financial zones for transactions and co-working spaces, with the Kids Zone and other services from KBank partners in the same place. An exclusive center providing a full range of services and facilities to High Net Worth Individuals and Affluent segments. E-Machine ATM ATM ATM Apart from being an ordinary cash-focused servicing machine, we enhance our self-service machine to be an authentication touch point for all digital onboarding such as e-Savings and e- Wallet account opening. The e-machines will provide massive additional convenience apart from normal branch coverage. KBank KBank Service ฝาก-ถอน-จ่ายบิล SERVICE|ยืนยันตัวตน เคแบงก์เชอร์วิส ใกล้ที่ไหน ไปที่นั่น KBank Service - Banking Agents are business partners with extensive network coverage and extended service hours, appointed by the Bank to provide specific banking services to customers such as accepting cash deposits into KBank accounts, cash withdrawals, bill payments, and identity verification when opening electronic bank accounts for retail customers. บริการทุกระดับประทับใจ Digital Banking Koon K-Toubandou dos animo โจก แอนเซอร์เกน Ana ใจเอาใจสายโช บ L Digital Banking includes: ⚫K PLUS .K PLUS SME K PLUS SHOP K-Cyber Service K-Corporate Connect K-Payment Gateway K-PowerP@y (mPOS) ⚫ LINE BK ⚫ MAKE ⚫. Khunthong ⚫ LINE KBank LIVE 37 K KASIKORNTHAI Intelligent Lending ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Continuously support our customers with better serve end-to-end journey; these includes: ■ Enhance ability to leverage overall data foundation, develop insight-driven methods in defining customer qualification criteria and credit scoring to promptly offer personalized lending experience where needs; while the bank still balance acceptable risk and fair return. ■ Proactive implement customer-centric collection strategy with appropriate approach and portfolio quality improvement End to End Credit Journey Target Port Lead Generation Reach Marketing & Offering Credit Assessment Monitoring & Collection 0004 Expected Outcome Wider Customer Reach Higher Conversion Optimized Risk Return Faster Time to Market บริการทุกระดับประทับใจ 38#20• K KASIKORNTHAI Proactive Risk & Compliance Management Value Enabler Partner with business and provide effective integrated risk solutions Predictive and integrated customer segment-based credit analytics Data-led asset quality management to provide persona-based relief packages/collection treatment to Covid-19 affected customers Intelligent fraud management in all key business processes Effective risk management execution for business partners and 3rd parties ☐ Key Capabilities Credit risk analytics & integrated credit portfolio planning & monitoring ■ Enhanced fraud analytics & incident management Customer data protection ■ Organization-wide prudent risk culture ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 Agile way of working and delivering integrated risk solutions Continuity & Resilient Operation under COVID-19 บริการทุกระดับประทับใจ 39 K KASIKORNTHAI Regional Payment & Settlement ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Facilitate payments and settlements to provide regional business connectivity and opportunities for lending KBank Become AEC's Settlement Bank Flow of Data ◉ "Exploring" ERP Solution Shipping & Inventory Mgmt CERP Flow of Advance Goods Become Main Facilitator Bank ■ Facilitate payment transactions Support multiple sources of funds Ensure seamless experience throughout journey Transactional Lending Flow of Money Note: ERP Enterprise Resource Planning บริการทุกระดับประทับใจ ■ Execute money transfer transactions Support multiple settlement currencies ■ Ensure funds availability and a smooth experience Engage customers with Total ERP solution ■ Enhance facilitating business with ERP solution ■ Provide transactional lending with value added service 40 40#21K KASIKORNTHAI Data Analytics Reimagined K-Data Strategy: Capture Value at Scale Scale up INTELLEGENCE ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 บริการทุกระดับประทับใจ 5. Step up CULTURE CHANGE K 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 & 4 Threat Detection 5 Cyber Hygiene Culture บริการทุกระดับประทับใจ Effective Incident Response & Recovery 41 42#22K KASIKORNTHAI Performing Talent and Agile Organization ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 5 key elements to build customer empowerment organization ◉ 5 Data ▪ Purposeful & practical leadership ■ Service with integrity ■ Innovation via agility & collaboration Practical Leader with Excellent Service & Structure Innovation Culture ■ Differentiated rewards to drive performance & attract talent ■ Total reward redesign to drive transformation ▪ Winning employee value proposition Purposeful & Strategy- Driven Performance- CUSTOMER EMPOWER- MENT Driven Reward 3 ■ New ways of hiring to attract new talent Work-life harmony ■ Re-skilling & up-skilling via integrated development solution Lean & Empowered Decision- Making Differentiated Process Value Proposition & Integrated Development Technology บริการทุกระดับประทับใจ ■Multi-disciplinary teams to work on strategic execution pillar ■ More flexible (Agile); delayering to reduce hierarchy Aspiration ☐ Customer obsession More & meaningful innovation ■ Fast execution with flexibility Excellent collaboration ■ Best place to work, learn & lead ■Remove unnecessary process bottlenecks ■ Autonomy & iterative experimentation Note: K KASIKORNTHAI KASIKORN BUSINESS - TECHNOLOGY GROUP Company Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK กสิกรเทคโนโลยีกรุ๊ปเซเครเทเรียต ***KASIKORN TECHNOLOGY GROUP SECRETARIAT ■ A Bridge between KBank and KASIKORN BUSINESS - TECHNOLOGY GROUP ■ Group's Control Structure Enable Seamless Integration กสิกร แล็บส์ 开泰研发 KASIKORN LABS ■ Technology Research and Innovation Labs Pioneer new possibilities กสิกร ซอฟต์ 开泰软件 KASIKORN SOFT ■ Software Development to Support Business Requirements and Innovation Generate Business Value กสิกร อินฟรา # KASKORN INFRA ■ Control Infrastructure Resources for the Change, the Run, and the Gone Ensure Service Continuity กสิกร เซิร์ฟ 开吞服务 KASIKORN SERVE ■ Center of Excellence for Technical Resource Pool and Service* Deliver Service Excellence กสิกร เอก 开基爱料艺有限公司 KASICORN X ■ Venture Builder New S-Curve Factory 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 Registered capital in each company at Bt5mn, except for KASIKORN SERVE at Bt10mn KASIKORN SERVE changed names from PROGRESS SOFTWARE COMPANY LIMITED; established in March 1993 KASIKORN INFRA changed names from KASIKORN PRO COMPANY LIMITED; established in October 2015 KUBIX is a KX's subsidiary; established in March 2021 บริการทุกระดับประทับใจ 43 44#23K KASIKORNTHAI KBTG Highlighted Accomplishments in Y2021 KBTG ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORN BUSINESS-TECHNOLOGY GROUP TECH ARM OF KBank ACCOMPLISHMENTS 145 IT Projects Delivered (+75% growth*) 400 KBank Applications 17 1st Million K PLUS users (+47% growth*) - Thailand's most popular mobile banking app Rank of Cyber Security - BitSight Rating NEW S-CURVE BUSINESS ACCOMPLISHMENTS Bt4bn New Loans - Through Marketing & Credit Intelligence via Al & Machine Learning KX Fully operated KX as 'Venture Builder' CONTA Launched 'Coral' Thailand First NFT'S Marketplace kubix 1st Bank to Receive ICO License in Thailand Established Platform Businesses THG 19 * % growth against Y2019 Co-innovations with Ecosystem Partners - Healthcare & Insurance Note: KX = KASIKORN X; NFT = Non-fungible Token; ICO Initial Coin Offering บริการทุกระดับประทับใจ K KASIKORNTHAI KBTG 3-Year Strategy (Y2022 - Y2024) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Vision ONE of the Best Tech Companies in Southeast Asia by 2024 SUPPORT RUNNING THE BANK 01. IT Project Delivery Excellence Drive strategic-focused projects and manage overall project portfolio for on-time, on-budget delivery 02. IT Brilliant Basics Modernized IT Architecture Operational Excellence (e.g. incident, service availability, capacity) " Cyber Security Level on par with Global banks IT Cost Optimization 03. Regional Expansion Support KBank regional expansion Uplift KTECH capability to enable KASIKORNABANK (China) to become one of the top foreign banks in Shenzhen 04. World Class Tech Talent " Forbes's World's Best Employers Acquire resources using hybrid model (Work from Anywhere) Uplift employee capability Note: NLP = Neuro-linguistic Programming; DeFi = Decentralized Finance; ; ICO = Initial Coin Offering CREATING THE FUTURE 05. Breakthrough Innovation " " Scale up existing innovation products Commercialize matured tech capabilities through partnerships Deliver business value/cost saving using advanced tech capabilities (Marketing/Credit Intelligence, Fraud detection, NLP Chatbot) 06. The New S-Curve " Become a Market Leader in Overall ICO Deal Volume in Thailand บริการทุกระดับประทับใจ A Prominent Industry Player in DeFi in Thailand 45 46#24K KASIKORNTHAI Support Running the Bank ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Vision: ONE of the Best Tech Companies in Southeast Asia by 2024 Project Delivery System Stability 2019 K PLUS Digital Users 83 < 5 hours 12.1 mn 1,332 People 2021 145 < 5 hours 17.1 mn 1,642 2024 250 (+200%) < 5 hours +++ 3,000 (+125%) Note: % Growth against year 2019 1. Scale Project Delivery through Transformation . • Scale to support the expansion of project demand and complexity Apply global best practices, processes and tools for transforming our IT delivery to overcome IT rapid changes 3. KPLUS Digital User Ensure the best experience for customer by always optimizing front-end and back-end to support fast growing number of users 2. 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 4. World Class Tech Talent • • Increase resource capacity to support the project demand Reduce the employee retention within industry benchmark Increase capability for focused role to support sustainable growth บริการทุกระดับประทับใจ K KASIKORNTHAI Creating the Future - Innovation & New S-Curve Scale-up Innovation Products & Partnerships ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Launch New S-Curve Products Khunthong Innovation TTAG kubix TTHAI MAKE TAGTHAI CeFi Become Market Leader in Overall ICO Deal Volume Health and Insurance Ecosystem เมือ ไทย ประกันภัย PAY LATER TEHG 9 Vaccine Registration & Insurance Lead In house Al Highlights Defi KX Fully operated KX as coral 'Venture Builder' and establish 'Endless Fund' Launch and scale Coral NFT Marketplace to be one of the top players Marketing & Credit Intelligence Process Automation Facial Technology Note: CeFi = Centralized Finance; DeFi = Decentralized Finance; NFT = Non-fungible Token บริการทุกระดับประทับใจ 47 48#25K KASIKORNTHAI Creating the future - Innovation & New S-Curve поке Innovations & Partnerships 180K Users MAKE by Kbank A mobile banking application designed specifically for a new generation to personalize financial management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 1mn Users KhunThong Social chatbot helping friends settle expenses within a chat for a seamless payment experience TB40 THG Vaccine Registration (THG) Jointly developed with Thonburi Healthcare Group to serve as a main channel to register for appointments and make advance payment for Moderna vaccination via LINE application 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 MANG THAI BELANCE 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 has been launched with PMIB broker in Dec uki UT 2021 Chula Care Application Application for Chula hospital's patients for getting multiple services in one app; booking, queuing and using tele clinic. service with various and convenient payment via credit card, mobile banking or K PLUS Jaidee Credit Line with DTAC Teamed with Total Access Communication Public Company Limited (DTAC) and LINE BK, we introduced Jaidee Credit Line to allow DTAC customers to apply for LINE BK credit line services K KASIKORNTHAI Creating the future - Innovation & New S-Curve S-Curve Products Kasikorn X (KX) KX Incubate, scale, and spin-off new s-curve businesses in DeFi. kubiz ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Kubix Digital Asset (Kubix) A full-fledged platform on blockchain technology for asset tokenization services and digital token offerings in primary market. corol coral coral Coral A non-fungible token (NFT) marketplace platform that comes with artists' authentication system and NFT trading using fiat currencies. DESTINY TOKEN • Destiny Token First Thai digital token for investment in the "Love Destiny The Movie" film under the cooperative effort of GDH and Broadcast Thai Television Co., Ltd. kubi KX Ооквее KX TBAF DI CONSI DESTINY TOKEN ในเคบท ทราย ฝนครับ เห ม า ด DESTINY TOKEN In 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. 49 50#26K KASIKORNTHAI KBTG 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 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 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 Launched an Internet banking service (IB) for corporate customers of KBank, Phnom Penh Branch, in August 2021 KTECH (China) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 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 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG K-Stadium, Innovation Center and K+ Building KBTG BELL 05 04 ADAS RONG K K+ 51 54 K-Stadium at KBTG Main Building K+ Building: City-based KBTG office with co-working spaces Innovation Center at KBTG Main Building BOX KPLUS Creative Box for small meeting at KBTG Main Building บริการทุกระดับประทับใจ Received "The Best Office Architecture Thailand 2021-2022" form Asia Pacific Property Awards and "Corporate Building 2021 (Architecture)" from Iconic Awards 52 52#27K KASIKORNTHAI KBank: Business Highlights บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 53 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 54#28K KASIKORNTHAI Business Direction ☐ Growth Strategy Dominate Digital Payments Reimagine Commercial & Consumer Lending Democratize Investment & Insurance Corporate Business Trusted partner to enrich corporate customers with best in class financial services and solutions ■ Provide innovative and multi-source of fund raising ■ Offer total solution of collection, payment and settlement Penetrate Regional Markets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Strengthen Harmonized Sales and Service Experience Improve Value-Based Productivity SME Business Empower SMEs at every business stage ■ Provide holistic banking service and beyond banking solutions ■ Innovative payment solutions ■ Conduct data analytics lending and offer products through appropriate channels, making it easier for smaller businesses to access financial credit World Business Regional digital expansion through 3 strategic plays Aggressive Play: Grow corporate lending portfolio aggressively ■ Mass Acquisition Play: Acquire customers via transactional banking channels and business partners Disruptive Play: Accelerate digital lending and develop BaaS platform Retail Business Empower Retail customers in everyday life Ecosystem orchestrator and harmonized channels to deliver anytime, anywhere experience ■ Data-driven offerings, especially consumer finance ■ Introduce investment platforms, digital lending, and BNPL for low-income segment Private Banking Group 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 บริการทุกระดับประทับใจ K KASIKORNTHAI Revenue by Business March 2022 (Consolidated) Loans Portfolio structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Non-interest Income Retail Business (29.9%) Corporate Business (35.8%) Average Yield: 5-7% Average Yield: 2-4% SME Business (34.4%) Average Yield: 5-7% Retail Business (47.3%) Corporate Business (34.5%) SME Business (18.2%) * 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 55 56#29K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Corporate Business: Performance and Market Position Multi-Corporate Large Corporate Business Business Medium Business Small and Micro Business High Net Worth Individual Affluent Middle Income Mass Main Bank Status* Corporate Bond Underwriting 30% 39% 40% 34% 22% 27% 20% 30% 25% 26% 26% 26% 16% 17% 17% 20% 19% 19% 15% 14% 20% (#1) (#1) (#1) (#1) (#1) (#1) 10% (#2) (#2) (#4) (#2) (#2) (#3) (#1) (#1) (#1) 10% 90 0% 2011 2012 2013 2014 2016 2018 2021 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 Source: The Thai Bond Market Association (ThaiBMA) Performance and Market Position ■Main Bank Status: 39% in Y2021 ■ Corporate Bond Underwriting: ranked #1 with 15% market share in 1Q22 ■Transaction Services: top player in transactional banking services Cash Management Services: MB** 24% market share in 2018 (#1)/ CB** 24% market share in 2018 (#2) Trade Finance: MB** 27% market share in 2018 (#1) / CB** 32% market share in 2018 (#1) Mutual Fund Supervisor: ranked #1 with 37% market share in 1Q22 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 K บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI SME Business: Performance and Market Position Multi-Corporate Large Corporate Business Medium Business Small and Micro Business High Net Worth Individual Affluent Middle Income Mass Business #1 in Market Share by Value* 30% 30% 30% 30% #1 in Main Bank Status* 31% 30% 28% 40% 35% 28% 29% 30% 29% 31% 30% 20% (#1) (#1) (#1) (#1) (#1) (#1) (#1) (#1) (#1) 20% (#1) (#1) (#1) 10% 10% 0% 2011 2012 2013 2014 2016 2018 Source: KBank Customer Survey 0% 2011 2012 2013 2014 2016 2018 Source: KBank Customer Survey 57 51 Performance and Market Position ■Main Bank Status: improved main bank status and strengthened #1 position ■Market Share: 31% market share; maintained #1 position ■ Market Position: strengthened #1 position in SME market - "Bank for SMEs"; targeted to be SME market leader in all areas KBank offered comprehensive solutions to SMEs through K SME CARE program launched in 2006, with a total of 25 classes and about 14,509 participants so far. In 2020, during the COVID-19 pandemic, KBank introduced How2Think - an online seminar with 24 topics Live on the "K SME" Facebook Page with over 300,000 views. Note: SME Business in Thailand accounts for 43.0% of Thailand's GDP, or Bt7.01trn (as of December 2018); supported by the government to become a key factor in economic and social growth (Source: The Office of Small and Medium Enterprises Promotion or OSMEP) - Market Share by Value = share of revenue (derived from both credit and non-credit products) that each bank gains from the market 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 * Since 2014, corporate and SME business main bank status and market share are reported every two years ** Market share by value and main bank status in 2018 may not be comparable with those in previous years due to a new SME population base covering more SMEs with better data availability บริการทุกระดับประทับใจ 58#30K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Private Banking Group: Performance and Market Position Multi-Corporate Business Large Corporate Business Medium Business Small and Micro Business High Net Worth Individual* Affluent Middle Income Market Share (Market Penetration) Assets Under Management (AUM) 36% 35% 34% 34% 34% 34% (Bt bn) 800 35% 35% 35% 750 717 (#1) 700 687 33% 2017 2018 2019 2020 2021 1Q22 Source: Private Banking Group (market share by number of customers) 650 788 775 767 600 2018 2019 2020 2021 1Q22 Mass Performance and Market Position ■ Market Penetration: ranked #1 with 35% market share (12,276 customers) and Bt767bn AUM in 1Q22 ■AUM Breakdown: Investment 60% and Deposit 40% ■ 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 Non-Financial Products and Services: Family Wealth Planning & Real Estate Others: Financial Event & Privilege Note: * High Net Worth Individual = Individual wealth with KBank and its wholly-owned subsidiaries > Bt50mn บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 59 59 KASIKORNTHAI Retail Business: Performance and Market Position Multi-Corporate Business Large Corporate Business Medium Business Bancassurance* (New Business, Total and Renewal Premium) Small and Micro High Net Worth Business Individual #1 in Mutual Fund (KAsset) Affluent Middle Income Mass Mortgage Loan (% Market Share) Ranked #2 in Total & Renewal Premiums and New Business (% Market Share) Ranked #1 in Mutual Fund AUM (% Market Share) Maintaining Top 3 with good quality portfolio (KAsset) 35% 29.7% 30% 27.8% 28.5% 24.8% 10% 9.2% 9.4% 8.3% 25% 24.4% 23.8% 23.0% 20.1% 20% 16.6% 15.8% 21.8% 19.9% 18.4% 17.1% 19.3% 15% 10% 30% 1 20% 10% - 7.4% 7.7% 20.5% 20.1% 22.1% 22.1% 21.7% 5% (#1) (#1) (#1) (#1) (#1) (#3) (#3) (#3) (#3) (#3) 5% 0% 0% 0% 2017 2018 2019 2020 2021 2018 2019 2020 2021 1Q22 2017 2018 2019 2020 2021 ■New Business Total Premium ■Renewal Premium Performance and Market Position ■Strong Growth in Retail Segment: Higher growth than market size in retail customers. KBank's retail customers grew 9.3% YoY in 1Q22. Bancassurance: MTL ranked #2 in total, new business and renewal premiums with Y2021 market share of 18.4%, 17.1%, and 19.3% respectively. A variety of life and non-life products were offered to customers, together with an alternative digital channel via K PLUS. Moreover, KBank also introduced COVID-19 insurance that provides medical coverage in case of infection or side effects from COVID-19 vaccination as well as death coverage. Fund Management Services " Mutual Funds: KAsset maintaining #1 position since 2010, with highest market share at 21.7% in 1Q22 ■Mortgage Loans: ranked in top 3, with 9.4% market share in Y2021, expanding into high potential customers with conservative growth together with strengthening partner relationships and maintaining good portfolio quality. Credit Cards: ➤ Purchase spending: ranked #1, with 22.4% market share in Y2021. Number of cards: ranked #2, with 14.7% market share in Y2021. Card-accepting merchant services (online & offline platforms): ranked #1, with more than 32% market share by sales volume in Y2021. ■Debit Cards: ➤ #1 in total debit card spending with 50.4% market share in Y2021; maintain top position by providing functions, features, security, and benefits to match customer lifestyles ➤ Variety of cards and campaigns offered to promote greater card spending in several categories, such as online shopping, and food delivery, including attractive cards with privileges for specific groups; i.e. Peanut Snoopy, JOURNEY Card, LINE BK. Note: * Total Premium = New Business Premium (NBP) + Renewal Premium; New Business Premium = First Year Premium (FYP) + Single Premium (SP) บริการทุกระดับประทับใจ 60 60#31K 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. 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 Actuarial Advisor Willis Towers Watson I.IPH KBank's actuarial advisor to provide opinion on transaction value relative to market. IFA JC Jay Capital Advisory JT KBank's independent financial advisor (IFA) to provide opinions for Shareholders' consideration. บริการทุกระดับประทับใจ Legal Advisor THANATHIP & PARTNERS KBank's legal advisor on terms and condition of bancassurance agreement. 61 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Key Transaction Summary and BA Business Going Forward ■KBank and Muang Thai Life Insurance (MTL), a subsidiary which KBank effectively holds 38.25% shares, have entered into a 10-year 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. ■In comparison to similar exclusivity bancassurance arrangement, Jay Capital (KBank's IFA) provided an opinion that terms, conditions as well as the basis of exclusivity fee determination are appropriate. KBank considered the overall economic value - both BA agreement value and equity value. ■ Aligning strategic direction with MTL through Bancassurance Agreement, KBank expects to enlarge BA markets in all key insurance products; life, health, and critical illness. In addition, KBank's Share of Wallet (SOW) in BA is still relatively low; thus, KBank could penetrate the market in a liquidity-flush environment. ■ 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 Note: BA Bancassurance; IFA = Independent Financial Advisor บริการทุกระดับประทับใจ 62 62#32K KASIKORNTHAI Total Economic Value ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ KBank still effectively owns 38.25% of MTL's equity. Bilateral negotiation is a balancing act Sales Channel Value 1 Company Value* Commission Non-contingent Performance Bonus Bancassurance Exclusivity Value KBank's Share in MTL Equity (38.25%) ■ 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. * Non-listed company บริการทุกระดับประทับใจ K KASIKORNTHAI Impacts on Income Statement ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 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 Consolidated KBank: Non-controlling interest: 61.75% x annual payment after tax Consolidated net profit: 61.75% x annual payment after tax 63 If NPE improves from this arrangement, KBank's consolidated income and MTL's NPE will rise. Note: Annual payment = Bt 1,270 mn (average payment per year) + performance bonus; NPE = Net Premium Earned บริการทุกระดับประทับใจ 64#33K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Risk and Credit Management บริการทุกระดับประทับใจ 65 K KASIKORNTHAI KBank Risk Management Structure ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■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 Board of Directors Risk Oversight Committee Audit Committee Operating 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 - ■ Approve risk appetite and all risk management policies and guidelines ■ Oversee effectiveness of consolidated risk management framework ■ 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 ■Credit Risk Management Sub-committee, Sustainable Development Sub- committee and Corporate Governance Committee oversee project financing requests that could have adverse impacts on the environment and society Business Units CBS/DNW/PBG/ CMB/IBB/WBG/CSI/ DAS/ICB/MMT/TWG/ CPD/TS/CSF/KBTG Risk Management and Control Function ERM Internal Audit ADD ■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#34Post Approval Approval Process 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 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 KASIKORN BANK 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 Note: FICO Fair Isaac Corporation Credit Service Fulfillment Dept. Bank-wide Risk Asset Review Payment Service Fulfillment Department ⚫ Legal document ⚫ Limit set up ⚫ Customer Review by Relationship Manager (RM) ⚫ Credit Monitoring and Asset Management Unit to facilitate RM in customer monitoring Credit Clinic Asset Quality Management Operation Dept. • Automated collection system • Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter generation, phone-based collection บริการทุกระดับประทับใจ 88 68 67#35K 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* Debt Collections Rescheduled Loans* (Financial Aid Program) Repayment of Rescheduled/ NPL** Restructured Term Loans with DPD > 1 day go to debt Restructured Loans (Not classified as NPL) collection stage Relapsed NPL Note: Performing Loans Process Non-Performing Loans Move to Better Status Move to Worsen Status Litigation Process Write-off NPL Sales * 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 69 K KASIKORNTHAI TFRS9: Asset Class and Expected Credit Loss Stage 1: Perform New or good assets 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 Probability of Default (PD) Stage 1: Performing 1 Year Define relevant economic factors & scenario Stage 2: Under-performing Lifetime Stage 3: Non-performing Lifetime Loss Given Default (LGD) Exposure at Default (EAD) Incorporate through PD point-in-time ■ Term structure PD is derived over behavioral life Derive term structure PD & ECL by scenario Weight with probability for final ECL ■ 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 70 70#36K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Relief Measures: To Reflect the Ability-to-Pay of Customers, Both Days Past Due and Stage Classification Are Used to Ensure the Prudence Days Past Due Days Past Due (> 30 days) Able to Pay (DPD) 90 DPDs 30 DPDs Grey Zone Grey Zone Grey Zone Stage2: Stage3: Stage1: Perform Underperforming Non-performing Grey Zone is loans classified as Underperforming or Non-performing with qualitative factors, such as Deterioration in financial position or operating results • Uncertainty in loan repayments of loans in observation period or in payment holiday package Liquidation or taken litigation process by other banks with high probability of default ■Loans in Stage 2 and Stage 3 are secured with lifetime expected credit loss (ECL) ■ Management overlays are added for vulnerable industries and economic uncertainties 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 71 72 22#37K 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. ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 Small & Micro Business Good credit Poor credit KBank's Policy Lending Reject application Required to Retail Business 4 Customer Segments in Retail (HN, AF, MI and MA) Good credit Poor credit KBank's Credit Scoring Reject application Note: * 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 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Continuity and Resiliency during COVID-19 Situation KBank takes holistic measures to ensure business continuity and resiliency during COVID-19 situation. Therefore, no key COVID-19 spread or key business disruption. • Incident Response Team (IRT) to manage overall situation/incidents COVID-19 Incident Management PROTECT Provide Protective Equipment e.g. mask, gel, face shield Launch Staff Measures & K-Tips e.g. protective measures • Report/Escalate to Executives e.g. key situation, action, criteria Increase Cleaning Cycle at frequently touched areas e.g. lifts, doors Install Thermo Scan at Key Buildings Maintain Social Distance e.g. workspace, work from home Restrict or Screen Vendors/ Visitors MONITOR RESPONSE Business Continuity Plan (BCP) Internal Provide Contact Channels for Staff to inform suspected cases External Closely monitor situation, impacts, and key actions; daily reports to executives Set up dedicated team to cope with COVID-19 infection incidents e.g. Building - deep cleaning Communication - internal and external via related channels People - provide medical support for infected staff; self quarantine for staff at risk with health report •Adjust Work mode & BCP to align with covid spread situation • Encourage customers to use digital channel services (if possible) Note: VPN Virtual Private Network • • Emphasize Work from Home (WFH) to reduce infectious risks Apply ATK and social distancing for work at site staff Split Site/floor + WFH for critical activities Provide accom or transportation support for key staff (if any) บริการทุกระดับประทับใจ 73 74#38K KASIKORNTHAI Proactive financial relief programs and thereafter ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Proactive financial relief programs to mitigate adverse impact from COVID-19 pandemic Relieve Broad-based financial relief measures ■ Proactive relief measures to customers with adverse impact from COVID-19 outbreak Financial relief measures For Business 6-month payment period (Payment Holiday or known locally as Debt Holiday) Financial aids programs i.e. payment deferral of principal and/or interest Liquidity injection programs such as BOT soft loans, etc. For Individual Reduce minimum payment for unsecured products Payment deferral of principal and/or interest Refine Proactive monitoring & customized measures ■ Proactive monitoring with an enhancement on data-driven risk- based analytics to better identify customer at risk and appropriate financial relief measure Revive Converge to new normal ■Lending business expansion with new lending capability leveraging data analytics Can pay DEBT Target Port Lead Reach Generation Marketing & Offering Credit Assessment Monitoring & Collection 000A 0000 PAY Proactive customer Can't pay management with data- driven risk- based customer analytics Provide appropriate relief measures / restructuring / NPL บริการทุกระดับประทับใจ Expected Outcome Wider Customer Reach Higher Conversion Optimized Risk Return Faster Time to Market 75 15 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 76 76#39K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Financial Aid Programs during COVID-19 for Businesses ■ Offer financial aid programs to help SME and retail customers during the COVID-19 pandemic 1Q20 Credit Adjustment (Payment deferral and/or interest rate reduction) 3Q20 4Q20 2Q20 May - Oct 20 Debt Holiday* 6-month grace period on principal and interest payments for SMEs with credit lines below Bt100mn (Automatic adjustment) 1Q21 2Q21 3Q21 Jul 21 2-month Debt Holiday For July and August 4Q21 Feb 20 - Jun 21 Up to 12-month grace period on principal payments/ 6-month grace period on principal and interest payments/ reduction in installment payments up to 12 months (30%, 50%, and 70%) for SMEs Apr-Dec 20 "Generous (Business) Owners-Empathetic Creditor" program: a cooperative effort between KBank and business operators to reduce interest rates for 6 months Loans for SMES GSB Soft Loans: Up to 5-year terms with Bt20mn loan limit for each SME, at 2% for 2 years BOT Soft Loans*: Up to 7-year terms for SMEs with credit limit below Bt500mn, at 2% for 2 years and 6 months interest free Loans guaranteed by Thai Credit Guarantee Corporation (TCG): with up to 7-year terms Apr 21 BOT Asset Warehousing**: Debt restructuring through Asset Warehousing with buy-back options within 3-5 years Apr 21 BOT Soft Loans supported by TCG credit guarantee scheme**: Up to 7-year terms, at average interest rate of 5% p.a. for five years (2% for the first 2 years) with 6 months interest free SME Loans: Loan limit of Bt300,000, at 3% with up to 5-year terms, 3-month grace period on principal "Zero Interest-rate Loan to Retain SME Staff" program: 0% interest rate with 10-year terms and 1-year grace period on debt repayments for the first year Loans against mutual funds: Short-term loans for mutual fund holders; mutual fund units can be used as collateral, with a limit from Bt30,000 to 80-95% of the funds' NAV, at 2% to 5.5% interest for 6-month to 1-year period Note: According to the Emergency Decree on Financial Assistance to Enterprises affected by COVID-19 (B.E. 2563), dated April 18, 2020. ** According to the Emergency Decree on Financial Rehabilitation and Recovery to support Businesses affected by COVID-19 (B.E. 2564), dated April 19, 2021. บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Financial Aid Programs during COVID-19 for Individuals ■ Offer financial aid programs to help SME and retail customers during the COVID-19 pandemic The First Phase Payment deferral Payment reduction • Interest rate reduction The Second and Third Phases for Individual . Payment deferral Payment reduction • Interest rate reduction • · Term loan extension * Customers can choose only one option depending on their debt service capability 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Credit card*: Reduce minimum installment payment to 5% in 2020-22 and 8% in 2023, returning to 10% in 2024 Xpress Loan and KLeasing: 3-month grace period on principal and interest payments Credit card and Xpress Cash: Grace period on principal payments Housing Loan: Up to 12-month grace period on principal payments or 50% reduction in installment payments for up to 12 months Lower interest rate ceiling*: Credit Card (from 18% to 16%); Xpress Cash and Xpress Loan (from 28% to 25%); KLeasing (from 28% to 24%) Credit card, Xpress Cash, and Xpress Loan: 6-billing cycle grace period on principal (Option 1) 4Q21 77 Xpress Loan: 30% reduction in installment payments for 6 billing cycles, at special interest rate of 22% (Option 2) KLeasing¹) Hire Purchase and Financial Lease: 50% reduction in installment payments for 6 months and extension of term loan for another 3 months (Option 1) Xpress Loan (Long-Term Loan) and Housing Loans: Grace period on principal for 3 months (Option 1); with 0.1% reduction in interest rate for 3 months for HL Reduction in installment payments for 3 months (Option 2): 30% for XPL and 50% for HL Grace period on principal and interest payments for 3 months (Option 3) KLeasing Hire Purchase and Financial Lease: Grace period on principal and interest payments for 3 months (Option 2) Credit card and Xpress Cash: Change to 48-month term loan, at special interest rate of 12% for credit card and 22% for Xpress Cash (card will be closed) (Option 2) KLeasing¹) Car to cash (Car registration Loan): 30% reduction in installment payments (Option 1) Grace period on principal and interest payments for 3 months (Option 2) with maximum interest rate <22% Debt Consolidation 2-month Debt Holiday* For customers effected from the lockdown in July 2021 Note: Debt Consolidation: Consolidate loans, with Credit Cards, Xpress Cash and Xpress Loan, by utilizing existing Home Loan's collateral for new loan from debt consolidation's collateral Customers who are currently in other relief programs of KBank, are also able to apply to this program. ** Automatic adjustment for all customers Credit card, Xpress Cash, Xpress Loan, Xpress Loan (Long- Term Loan) and Housing Loans 1) The Bank has provided another measure i.e. 3-month grace period on principal and interest payments by extending the termination period for a period of 3 months for KLeasing customers, who are severely affected by COVID-19 and are unable to pay their debts. บริการทุกระดับประทับใจ 78#40K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Financial Performance 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 K KASIKORNTHAI 1Q22 Performance Highlights Consolidated 2020 2021 1Q21 2Q21 3Q21 4Q21 1Q22 Net Profit (Bt bn) 29.49 38.05 10.63 8.89 8.63 9.90 11.21 Profitability - NIM 79 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■■1Q22 net profit increased 5.50% YoY, mainly from higher net interest income, while non- interest income decreased, operating expenses increased, with higher expected credit loss from prudent policy. 1Q22 EBPT decreased 1.16% YoY, from a drop in non-interest income and an increase in operating expenses, while net interest income increased. ■1Q22 loans grew 1.51% YTD, mainly from corporate business. ■■1Q22 NIM was 3.19%, increasing YoY, mainly due to higher yield on loans and lower cost of funds. 1.53% 1Q22 net fee income decreased 6.36% YoY, from relatively large base in 1Q21; mainly from fund management business inline with market condition. ■■1Q22 cost to income ratio was 42.82%, increased YoY from an increase in other 3.27% 3.21% 3.16% 3.22% 3.23% 3.15% 3.19% - ROE* - ROA 7.10% 8.44% 9.57% 8.11% 7.44% 8.70% 9.30% 0.85% 0.98% 1.14% 0.93% 0.87% 0.97% 1.09% - YTD Loan growth 12.13% 7.88% 2.56% 6.17% 8.87% 7.88% 1.51% - YoY Loan growth 12.13% 7.88% 12.69% 12.06% 13.32% 7.88% 6.77% - YoY Net fee income growth (10.17%) 7.01% 6.56% 6.57% 9.67% - YoY Non-interest income growth (20.65%) (4.17%) 19.30% (20.96%) (3.12%) 5.39% (4.75%) (6.36%) (25.49%) Cost control -Cost to income 45.19% 43.49% 41.30% 41.78% 42.47% 48.16% 42.82% Asset quality - NPL ratio - Credit Cost -Coverage ratio Loans to Deposits Tier 1 Ratio CAR 3.93% 2.05% 149.19% 159.08% 3.76% 1.73% 3.93% 1.52% 153.98% 95.73% 93.20% 16.13% 16.49% 15.80% 95.91% 96.07% 15.86% 3.95% 3.85% 1.85% 1.87% 154.09% 156.96% 96.55% 16.53% 3.76% 1.58% 159.08% 93.20% 16.49% 3.78% 158.33% 93.31% 16.35% 18.80% 18.77% 18.44% 18.19% 18.82% 18.77% 18.34% 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 * 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 operating expenses (mainly from IT and marketing), though net total income increased. Focus on cost management and productivity improvement, with new investments for future growth. ■■1Q22 NPL ratio was at 3.78%, with 158.33% coverage ratio. vânısynseñuusenu=1022 capital base remained adequate. 80#41K KASIKORNTHAI Consolidated Financial Statements ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2020 2021 1Q21 2Q21 3Q21 4Q21 1Q22 Interest income Interest expenses Interest income - net Fee and service income Fee and service expenses 127,592 135,415 31,972 33,605 34,828 35,010 35,924 18,570 16,024 3,840 3,888 4,087 4,210 4,174 109,022 119,390 28,133 29,717 30,741 30,800 31,751 45,699 48,628 12,615 11,839 11,949 12,224 12,367 12,695 13,312 3,184 3,264 3,389 3,474 3,535 Fee and service income - net 33,004 35,316 9,431 8,575 8,560 8,749 8,832 Gain (Loss) on financial instrument measured at FVTPL. 8,119 5,539 1,812 1,202 (184) 2,709 686 Gain (Loss) on trading and foreign exchange transactions Gain (Loss) on investments Net premium earned Other operating income Total operating income Underwriting expenses 1,308 817 116 330 286 85 (17) 72,129 69,360 16,686 17,264 17,255 18,156 15,718 1,682 1,289 348 326 214 401 427 227,456 234,328 57,212 58,206 57,655 61,254 58,218 72,565 70,979 17,184 17,351 17,712 18,731 17,605 Total operating income - net 154,891 163,349 40,028 40,855 39,943 42,523 40,613 Total other operating expenses 69,997 71,044 16,531 17,069 16,965 20,478 17,390 Earning Before Provision and Tax 84,895 92,305 23,496 23,786 22,978 22,045 23,223 Expected Credit Loss 43,548 40,332 8,650 10,807 11,296 9,580 9,336 Impairment loss of loans and debt securities Operating profit before income tax expenses 41,347 51,973 14,846 12,979 11,682 12,466 13,887 Income tax expenses 7,656 9,729 3,035 2,548 2,026 2,120 2,700 Net profit attributable: Equity holders of the Bank 29,487 38,053 10,627 8,894 8,631 9,901 11,211 Non-controlling interest 4,203 4,192 1,184 1,537 1,025 445 (24) Statements of Financial Position (Bt mn) 2020* 2021 Loans to customers (less deferred revenue) Total Assets Deposits 2,344,998 Total Liabilities Total Equity attributable to equity holders of the Bank 3,167,512 439,670 1Q21 2,244,821 2,421,813 2,302,352 3,658,798 4,103,399 3,767,115 2,598,630 2,400,615 3,566,724 3,260,149 476,714 452,029 2Q21 3Q21 1Q22 2,383,320 2,444,018 2,421,813 2,458,263 3,886,863 4,029,831 4,103,399 4,133,248 2,480,781 2,531,290 2,598,630 2,634,409 4Q21 3,373,323 456,829 3,507,795 464,367 3,585,865 Note: 3,566,724 476,714 488,192 - 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. * The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions' announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity. บริการทุกระดับประทับใจ 81 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Earnings Before Provision and Tax (EBPT) and Net Profit March 2022 (Consolidated) EBPT (Bt bn) 100 87.14 87.76 92.31 84.90 80 60 40 20 0 2018 2019 2020 2021 Net Profit (Bt bn) 60 38.46 38.73 38.05 40 29.49 23.22 20 11.21 0 1Q22 2018 2019 2020 2021 1Q22 1Q22 EBPT dropped 1.16% YoY, from a drop in non-interest income and an increase in operating expenses, while net interest income increased. 1Q22 net profit increased 5.50% YoY, mainly from higher net interest income, while non-interest income decreased, operating expenses increased, with higher expected credit loss from prudent policy. EBPT (Bt bn) EBPT Growth (% YoY) 2018 2019 87.14 87.76 84.90 (3.70%) 0.72% (3.27%) 2020 2021 1Q21 92.31 8.73% 23.50 14.22% 1Q22 23.22 (1.16%) 4Q21 22.05 18.28% 1Q22 23.22 (1.16%) Net Profit (Bt bn) Net Profit Growth (% YoY) 38.46 12.00% 38.73 0.70% 29.49 (23.86%) 5.50% Note: The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions' announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity. 38.05 29.05% 10.63 44.10% 11.21 5.50% 9.90 11.21 (25.32%) L บริการทุกระดับประทับใจ 82 62#42K KASIKORNTHAI Interest Income - net March 2022 (Consolidated) Interest Income and Interest Expenses ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Income - net (Bt bn) 140.00 123.92 130.18 127.59 135.42 120.00 (Bt bn) 120.00 119.39 109.02 98.54 102.69 100.00 100.00 80.00 80.00 60.00 35.92 60.00 31.75 40.00 25.38 27.49 18.57 16.02 40.00 20.00 4.17 20.00 0.00 0.00 2018 2019 2020 Interest In come 2021 Interest Expenses 1Q22 2018 2019 2020 2021 ■Interest Income - net 1Q22 1Q22 net interest income rose 12.86%, mainly due to higher yield on loans with continual loan growth, and higher investment volume. Interest Income (Bt bn) Interest Expenses (Bt bn) Interest Income - net (Bt bn) Interest Income - net (% Growth YoY) 2018 2019 123.92 25.38 130.18 27.49 2020 127.59 18.57 2021 1Q21 1Q22 4Q21 1Q22 135.42 16.02 31.97 I 35.92 3.84 4.17 35.01 35.92 4.21 4.17 98.54 4.65% 102.69 109.02 4.21% 6.17% 119.39 9.51% 28.13 31.75 30.80 31.75 0.18% 12.86% 15.78% 12.86% 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 K KASIKORNTHAI Non-interest Income and Structure March 2022 (Consolidated) Non-interest Income to Average Assets Non-interest Income Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Premium Earned and Underwriting Expenses 83 (%) (Bt bn) 4 120 (Bt bn) 91.43 100 87.90 80.49 80.65 3 80 72.13 72.57 69.36 70.98 | 1.88 1.79 65 2 1.32 1.13 56.95 (-99) 57.80 (+2%) 60 40 0.86 55- 1 45.87 (-21%) 4% 20 15.72 17.61 43.96 (4%) 0 2018 2019 0 45 2018 2019 2020 2021 1Q22 35 Net Premium Eamed Net Premium Earned - net 2020* 2021 1Q22 Underwriting Expenses 67% 64% Non-interest Income Ratio 25 80% (Bt bn) 72% 14 8.86 (%) 5% 60 15 6% 0.1% 4% 15% | (-25% YoY) 9 5% 50 D.1% 8% 3.54 37 36 5 14% 2% 40 16% 30 18% 100% 10% 4 27 13% -0.16 30 22 0.3% 0.4% -2% 2018 2019 -1% 2020 -4% 2021 -1 20 10 0 Net Premium Earned net Gam on financ alinstrument measured at FVTPL (Gan a Trading and FX tansactons- old) Share of Prost from investments on Equity Methad Gain on Investment Fee and Service Income-nd 1022-0.6% -0.2% -21% 2018 -0.44 2019 2020* 2021 1022 ■Net Premium Earned - net -1.62 -1.89 Dvidendincome 2018 2019 2020 2021 1Q22 "Other Operating Income 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. 2018 Non-interest Income (Bt bn) Non-interest Income Growth (%YoY) 56.95 2019 57.80 2020 45.87 2021 43.96 1Q21 11.89 1Q22 8.86 4Q21 1Q22 11.72 8.86 Non-interest Income Ratio (%) (9.17%) 36.62 1.51% (20.65%) 36.02 29.61 (4.17%) 26.91 19.30% 29.72 (25.49%) (4.75%) (25.49%) 21.82 27.57 21.82 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 * 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 84#43k KASIKORNTHAI Net Fee Income March 2022 (Consolidated) Net Fee Income (Bt bn) 38.12 36.74 33.00 35.32 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Fee Income to Net Total Operating Income (%) 30 26% 25% 23% 21% 22% 20 8.83 10 40 30 20 10 0 2018 2019 2020 2021 1Q22 0 2018 2019 2020 2021 1Q22 ■1Q22 net fee income dropped 6.36% YoY from relatively large base in 1Q21; mainly from fund management business in line with market condition. ■Net fee income to net total operating income was 21.75% in 1Q22. 2018 2019 2020 2021 1Q21 1Q22 4Q21 1Q22 Fee Income (Bt bn) 51.19 50.58 45.70 48.63 12.62 12.37 12.22 12.37 Fee Income-net (Bt bn) 38.12 36.74 33.00 35.32 9.43 8.83 8.75 8.83 Fee Income Growth (%YoY) Net Fee Income Growth (% YoY) Net Fee Income to Net Operating Income Ratio (%) 22.89 (1.10%) (1.19%) (9.65%) (7.72%) (3.61%) (10.17%) 24.52 21.31 6.41% 7.01% 21.62 23.56 2.27% (1.97%) 6.56% (6.36%) 21.75 5.56% (1.97%) 5.39% (6.36%) 20.58 21.75 Note: - 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) * 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 K KASIKORNTHAI Net Fee Income Structure March 2022 (Consolidated) Net Fee Income by Product Brokerage business 7% Others 13% Credit Card Business 14% Transaction services 16% Fund Management Business 23% Trade finance 7% Commercial credit 16% Cash management 4% Loan Related and Non-loan Related Fees - net Non-loan related 86% Loan related 14% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■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.) 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 85 86#44K KASIKORNTHAI Other Operating Expenses March 2022 (Consolidated) Other Operating Expenses Structure (Bt bn) 72.73 70.00 71.04 68.35 70 29% 28% 60 29% 28% 0.2% 0.2% 0.2% 50 0.2% 7% 7% 7% 8% 40 17% 19% 18% 16% 17.39 30 20 26% 46% 46% 46% 49% 8%0.1% 10 16% 50% 0 2018 2019 2020* 2021 1Q22 ■Others ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Directors' remuneration Taxes & Duties ■Premises & Equipment Employee's expenses 1Q22 other operating expenses increased 5.20% YoY, mainly due to an increase in IT expenses in order to support customers' need, and marketing expenses; continued to focus on cost and productivity improvement and new investments for future growth. Other Operating Expenses (Bt bn) Other Operating Expenses Growth (% YoY) 2018 2019 68.35 72.73 2020 70.00 2021 71.04 1Q21 16.53 1Q22 17.39 4Q21 1Q22 20.48 17.39 2.98% 6.41% (3.76%) 1.50% (5.44%) 5.20% 1.02% 5.20% 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 K KASIKORNTHAI Loan Structure and Loan Growth March 2022 (Consolidated, TFRS 8: Operating Segments*) Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio Bt bn 2,458 Consolidated 2,422 2,800 2,002 2.245 Amount (Bt bn) Dec 21 1Q22 1Q22 Y2022 Mar 22 Loan Growth Yield Range Loan Growth Target 1,914 2,400 34% 2,000 34% 36% Corporate SME (%) (%) Corporate Loans 816 840 2.8% 2-4% 1,600 36% 34% SME Loans 793 806 1.7% 5-7% 1,200 339 Retail 33% 359 34° 339 Retail Loans 711 702 (1.3%) 5-7% 800 Others 400 25% 28% 28% 29% 29% Other Loans 101 111 9.3% 0 4% 4% 3% 4% Total Loans 2,422 2,458 1.5% 4.8% (%) 1-3% 4-6% 9-11% 6-8% 2018 2019 2020 2021 1Q22 Loan Growth (% YoY) 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. Loan by Retail Products (All Segments)** (%) 15 (Amount in Bt bn) Dec 21 Mar 22 Y2021 Loan 12.13 Growth 1Q22 Loan Growth % Portion to Total Loan 10 7.88 6.17 6.77 (%) (%) 4.59 5 Housing Loans 483 474 7.6 (1.7) 19.3 0 2018 2019 2020 2021 1Q22 Credit Cards Consumer Loans KLeasing 102 96 11.9 (5.4) 3.9 66 68 102.5 2.7 2.8 121 125 5.4 3.3 5.1 2018 Loans (Bt bn) Loan Growth (% YoY) 1,914 2019 2,002 2020 2,245 2021 1Q21 1Q22 4Q21 1Q22 2,422 2,302 2,458 2,422 2,458 Loan Growth (% YTD) 6.17% 6.17% 4.59% 4.59% 12.13% 12.13% 7.88% 7.88% 12.69% 6.77% 7.88% 2.56% 1.51% 7.88% 6.77% 1.51% 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. 87 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: Other Loans: Composed of loans through the insurance business (MTL), regional markets, 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 to retail customer segments; Credit Cards: KBank's credit card loans to all eight customer segments; Consumer Loans: KBank's consumer loans to retail customer segments; KLeasing: KLeasing's loans to all eight customer segments บริการทุกระดับประทับใจ 88#45K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio Breakdown by Industry, Currencies, and Interest Rate March 2022 (Consolidated) Loan Portfolio by Industry* By Residency of Borrowers (December 2021)* (Bt bn) 3,000 2,500 2,002 2,245 2,422 1,914 1,803 2,000 1,527 1,610 1,698 ■ Others 17.7% 1,439 16.8% 1,327 1,500 1,000 6.9% 14.5% 14.2% 11.6% 15.7% 4.29 12.5% 4.69 2.89 4.8 6.2 8.9% 9.0% 13.5% 12.5% 13.2% 14.7% 13.7% 13.5% 12.8% 6.6% 6.9% 46.2% 41.7% 14.3% 4.29 14.6% 4.9 16.3% 6.2 Housing Loans 7.1 7.2 Utilities & Services 8.5% 14.2% 8.6% 14.7% 8.6% 500 0 1.9% 2.1% 1.9% 1.8% 1.7% 1.6% 1.4% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 8.6% 8.9% 48.1% 49.1% 48.1% 47.3% 46.2% 44.0% 41.7% 40.5% 2.0% 2.4% 2.3% Real Estate & Construction Manufacturing & Commerce Agricultural and Mining Foreign 3.4% Domestic 96.6% By Maturity of Interest Repricing (December 2021)* 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 Proportion of KBank's Outstanding Loans 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 Bangkok and Metropolitan Upcountry 64% 64% 63% 64% 62% 59% 58% 62% 63% 36% 36% 37% 36% 38% 41% 42% 38% 37% > 6 months 18.1% Others 0.7% <=6 months 9.6% Note: *The information on loans breakdown by industry, residency of borrowers, and maturity of interest repricing are disclosed on half year basis Immediate repricing 71.6% K KASIKORNTHAI Asset Quality March 2022 (Consolidated) NPL Ratio บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 89 Coverage Ratio Classified Loans** (%) (%) (Bt bn) Stage 1 Performing 2020 2021 1Q22 1,951 2,130 2,163 5 4 3.34 3.65 3.93 3.76 3.78 200 160.60 150 148.60 149.19 159.08 158.33 Stage 2 Under-performing Stage 3 Non-performing 201 202 205 103 106 108 3 Total 2,256 2,438 2,476 2 100 1 0 50 0 T 2018 2019 2020* 2021 1Q22 2018 2019 2020* 2021 I 1Q22 NPL ratio in 1Q22 was at 3.78%, with a coverage ratio of 158.33%. COVID-19 negatively affected asset quality; asset quality is manageable with closely monitored and constantly reviewed. Relief measures help limit short-term impact on asset quality, while focusing more on comprehensive debt restructuring. 2018 2019 2020 2021 1Q21 1Q22 4Q21 1Q22 NPL Ratio (%) 3.34 3.65 3.93 3.76 3.93 3.78 Coverage Ratio (%) 160.60 148.60 149.19 159.08 153.98 158.33 3.76 159.08 3.78 158.33 SML to Total Loans Ratio (%)* 1.90 2.80 - Loans with significant increase in credit risk (%) 7.80 7.27 7.88 7.22 7.27 7.22 L 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). ** 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 90#46K KASIKORNTHAI Expected Credit Loss and Credit Cost March 2022 (Consolidated) Impairment Loss of Loans and Debt Securities Expected Credit Loss ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Cost (Bt bn) 50 43.55 40.33 40 32.53 34.01 30 20 10 0 2018 2019 2020 2021 (bps) 350 300 250 200 175 174 205 173 153 150 9.34 100 50 1Q22 2018 2019 2020 2021 1Q22 1Q22 credit cost was at 153bps inline with target range; continuous prudent consideration on factors amid the economic growth that remains uncertain from COVID-19 situation and global economic outlook. Asset quality is manageable with closely monitored and constantly reviewed. Relief measures help limit short-term impact on asset quality, while focusing more on comprehensive debt restructuring. 2018 2019 2020 2021 1Q21 1Q22 4Q21 1Q22 Expected Credit Loss (Impairment Loss of Loans and Debt Securities) (Bt bn) 32.53 34.01 43.55 40.33 8.65 9.34 9.58 9.34 Credit Cost (bps) 175 174 205 173 152 153 158 153 บริการทุกระดับประทับใจ K KASIKORNTHAI Bad Assets Resolution March 2022 (Consolidated) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Write-offs 27.4 26.4 21.5 19.9 (Bt bn) 28- 24- 20 16 10.7 12 10.3 10.1 9.6 7.3 8 5.5 5.0 4.3 3.9 4 0 6.9 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 NPL Portfolio Sales 2007: KBank and Phethai AMC sold NPLs totaling Bt11.4bn to Standard Bank Asia Limited and Morgan Stanley Emerging Markets Inc. at Bt7.6bn and Bt3.8bn, respectively 2008-1Q16: NPLs continued to decline without bulk NPL sales 2016: KBank sold NPLs worth Bt6.4bn (Bt4.9bn in 2Q16 and Bt1.5bn in 4Q16) to JMT Network Services PCL 2017: KBank sold NPLs worth Bt8.4bn in 4Q17 to asset management companies 2018: KBank sold NPLs worth Bt15.4bn (Bt7.3bn in 1Q18, Bt5.4bn in 3Q18, and Bt2.7bn in 4Q18) to asset management companies 2019: KBank sold NPLs worth Bt7.1bn (Bt4.3bn in 1Q19 and Bt2.8bn in 3Q19) to asset management companies 2020: KBank sold NPLs worth Bt6.8bn (Bt4.9bn in 1Q20 and Bt1.9bn in 4Q20) to asset management companies 2021-1Q22: KBank had no NPL sales. 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 Outstanding Foreclosed Properties Sales of Foreclosed Properties (KBank only) (Bt bn) (Bt bn) 13- 46.3 45.7 40.0 31.5 35.0 28.4 24.9 30.0 25.0 19.6 20.0 16.7 15.9 15.1 16.1 17.4 15.0 12.5 12.1 13.4 10.0 5.0 0 0.0 6.4 5.4 5.6 5.0 4.8 4.1 4.2 4.3 3.9 2.8 3.0 2.9 3.3 2.4 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20211Q22 บริการทุกระดับประทับใจ 91 92#47K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK TFRS 9: Investment in Securities Portfolio and Structure March 2022 (Consolidated) Instrument Type Financial Assets Classification Holding Type TFRS 9: Asset Type (Bt bn) 1,098 1,200 1,080 (Bt bn) 0.4% 0.4% 11% 1,200 1,000 824 9% 1,098 0.3% 1,080 0.4% 777 11% 777 0.3% 11% 1,000 663 824 800 0.4% 663 10% 0.3% 17% 0.2% 0.3% 14% 18% 0.1% 15% 800 0.1% 56% 600 10% 15% 0.1% 7% 0.7% 63% 20% 16% 18% 600 0.7% 56% 400 61% 61% 54% 400 200 66% 53% 54% 56% 38% 38% 32% 200 40% 43% 0 2018 2019 2020* 2021* 1Q22* 3% 2% 6% 6% 4% 0 Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) 2018 Equity Investment Foreign Bonds Investments Subsidiaries General Corporate Bonds ■ Available-for-sales 2019 Investment in Receivables. Held-to-maturity Trading 2020* 2021* 1Q22* Investments Subsidiaries Amortized cost ■ Fair value through OCI ■Fair value through PL ■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. 2018 2019 2020 Investment Portfolio (Bt bn) 663 777 824 2021 1,098 1Q21 928 1Q22 1,080 4Q21 1Q22 1,098 1,080 Investment Portfolio (% Growth YoY) 23.51% 17.22% 6.15% 33.16% 17.85% 16.33% 33.16% 16.33% บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Deposits Growth and Loans to Deposits Ratio March 2022 (Consolidated) Deposits Loans to Deposits Ratio (Bt bn) 3,000 2,599 2,634 100% 2,345 2,400 96.6% 1,995 2,072 95.9% 95.7% 1,800 95% 93.3% 93.2% 1,200 90% 600 0 85% 2018 2019 2020 2021 1Q22 2018 2019 2020 -Loans to Deposits 2021 1Q22 ■Deposits Deposits and Loans to Deposits Ratio is in line with peers. 2018 2019 2020 2021 1Q21 1Q22 Deposits (Bt bn) 1,995 2,072 2,345 2,599 2,401 2,634 4Q21 2,599 1Q22 2,634 1 Deposits (% YoY) 6.2% 3.9% 13.2% 10.8% 9.0% 9.7% 10.8% 9.7% ! Deposits (% YTD) 6.2% 3.9% 13.2% 10.8% 2.4% 1.4% 10.8% 1.4% Loans to Deposits Ratio (%) 95.9% 96.6% 95.7% 93.2% 95.9% 93.3% 93.2% 93.3% บริการทุกระดับประทับใจ 93 94#48K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Funding Structure and Interest Rate Movement March 2022 (Consolidated) Funding Structure Deposit Structure (Bt bn) 2,889 2,908 (Bt bn) 3,200 2,502 2,800 2,800 2,194 2,236 6% 6% 2,599 2,634 3% 2,400 2,345 2,400 6% 4% 4% 3% 3% 2,000 2,072 1,995 18% 18% 20% 2,000 4% 22% 23% 3% 1,600 1,600 77% 1,200 91% 93% 94% 90% 91% 1,200 76% 74% CASA 800 800 71% 72% = 82% 400 400 0 0 6% 6% 6% 6% 5% 2018 2019 2020 Deposits ST and LT Borrowings 2021 Interbank and Money Market 1Q22 2018 2019 2020 2021 1Q22 Current ■Savings Term KBank Interest Rate Movement (Retail customers) ST and LT Borrowings (%) Deposit rates (%) (Mar 6, 2021) (Bt bn) 7 Savings 0.25 125 6 103 Fixed 3M-12M 0.32-0.40 100 5 82 69 78 Fixed 24M-36M 0.45-0.65 75 71 4 87% 50 3 Lending rates (%) (May 22, 2020) 84% 100% 99% 100% 2 25 MLR 5.47 0.17% 16% 0.19% 1.32% 13% 1 0 MOR 5.84 2018 2019 2020 2021 1Q22 0 2015 2016 2017 2018 2019 2020 2021 1Q22 MRR 5.97 ■ST Borrowing ■ B/E & Others LT Borrowing MLR Savings Fixed3M บริการทุกระดับประทับใจ K KASIKORNTHAI Long-term Senior/Subordinated Debentures Issue Date Name Long-term Subordinated Debentures ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Type Feature Amount Maturity Years Interest Rate (Per annum) Interest Payment period Credit Rating 10/08/2021 Additional Tier 1 Subordinated Notes* Unsecured Perpetual NC5.5Y USD350mm 4% Semi- annually Ba1 by Moody's 14/10/2020 Additional Tier 1 Subordinated Notes* Unsecured Perpetual NC5Y USD500mn 5.275% Semi- annually Ba1 by Moody's 02/10/2019 Tier II Subordinated Notes due 2031* Unsecured 12NC7 USD800mn 12 years (02/10/2031) 3.343% Semi- annually Baa3 by Moody's BB+ by Fitch Ratings Long-term Senior Debentures 07/12/2018 Floating Rate Notes due 2023* Unsecured USD15mn 5 Years (07/12/2023) 3m Libor+0.95% Quarterly 30/10/2018 Floating Rate Notes due 2023* (Sustainability Bond) Unsecured USD100mn 5 Years (30/10/2023) 3m Libor+0.95% Quarterly Baa1 by Moody's 12/01/2018 Senior Unsecured Notes due 2023* Unsecured USD400mn 5.5 Years (12/07/2023) 3.256% Semi- annually BBB by S&P BBB by Fitch Ratings Note: *The issued notes are drawn from the Bank's USD 4bn Euro Medium Term Note Programme (EMTN) บริการทุกระดับประทับใจ 95 96#49K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: The wholly-owned subsidiaries, and Muang Thai Life Assurance บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: Business Profile and Aspiration March 2022 KAsset EST. Mar 1992 Company Name Company Profile Asset Size KASIKORN ASSET MANAGEMENT CO., LTD. A leader in fund management business (i.e. mutual funds, provident funds, and private funds) Bt2.84bn KResearch EST. Dec 1994 KASIKORN RESEARCH CENTER CO., LTD. Professional in providing knowledge in economics, business, money, and banking Only research house which is an affiliate of a bank Bt0.15bn KSecurities EST. Apr 2005 KASIKORN SECURITIES PCL. Professional in providing a complete range of excellent financial solutions and services, including investment banking, securities underwriting, and securities brokerage Bt37.74bn KLeasing EST. Aug 2005 KASIKORN LEASING CO., LTD. Professional in providing three core products: hire purchase, financial lease, and floor plan Bt125.74bn KF&E EST. Jul 1990 KASIKORN FACTORY AND EQUIPMENT CO., LTD. Professional in providing a complete range of machinery and equipment leasing services Bt24.05bn Market Share 18% 2022 Targets Maintain top tier position 3-year Aspiration Maintain top tier position *Data as of Jun 2021 N/A 3% (#11) 8% 19%* Top of mind research house for media and for the clients of KBank and its wholly- owned subsidiaries Top of mind 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 Maintain leading position in equipment leasing industry บริการทุกระดับประทับใจ 98 97 46#50K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: 1Q22 Key Operating Performance March 2022 KAsset KResearch EST. Mar 1992 EST. Dec 1994 KSecurities EST. Apr 2005 1Q22 Key Operating Performance Assets Under Management (AUM): Bt1.54trn Most quoted research house in the media (+2.00% YoY) - Trading volume: Bt367bn - Number of customers grew 39% YoY KLeasing EST. Aug 2005 Outstanding loans: Bt125.19bn (+9.68% YoY) KF&E EST. Jul 1990 Outstanding loans: Bt24.03bn (-5.59% YoY) (Bt bn) 8 The wholly-owned subsidiaries of KBank: Net Profit 7.20 7 5.99 6 5.39 5.60 4.91 5 4.56 3.66 3.85 4 3.23 3 2 1 0 1.69 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 Net profit slightly dropped from the same period of 2021, -5% YoY. However, KBank continues to create synergy among its wholly-owned subsidiaries บริการทุกระดับประทับใจ (Bt bn) K KASIKORNTHAI KAsset Highlights in 1Q22 March 2022 10,000 8,000 หลักทรัพย์จัดการกองทุนกสิกรไทย 开泰基金管理 KASIKORN ASSET MANAGEMENT AUM (KAsset vs. Industry) (Bt bn) 6,368 6,000 4,253 4,000 3,633 2,883 3,015 851 946 5,118 5,534 1,090 1,132 1,240 1,303 1,380 1,431 1,477 1,575 1,538 6,959 7,173 7,737 8,279 8,750 8,558 2,000 1,500 1,000 2,000 742 635 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1022 500 Industry Outlook: ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 1Q22 industry AUM at Bt8.56trn, increasing 0.99% YoY KAsset AUM at Bt1.54trn, increasing 2.00% YoY KAsset Highlights: Ranked #1 in Mutual Fund and #2 in Provident Fund with market share of 21.7% and 15.7%, respectively Ranked #2 in total AUM with market share of 18.0% ■Mutual fund accounts for 73% of KAsset AUM (%) Industry -KAsset *2018-YTD include REITS Market Share by AUM 30.0 20.7 21.4 19.2 18.5 17.8 18.018.0 19.5 19.018.9 15.0 10.8 10.7 9.6 10.110.2 12.1 11.3 10.5 10.210.1 6.5 5.8 4.9 4.8 4.9 0.0 KAsset SCBAM KTAM MFC 2018 2019 2020 2021 1Q22 37.7 37.9 37.9 30.7 32.3 BBLAM Other บริการทุกระดับประทับใจ KAsset AUM Breakdown by Type Provident Fund 14% Private Fund 13% Mutual Fund 73% 99 100#51K KASIKORNTHAI KResearch Highlights in 1Q22 March 2022 ศูนย์วิจัยกสิกรไทย 开票研究中心 KASIKORN RESEARCH CENTER ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 25,000 Number of News Quotes 20,000 15,000 14,532 11,500 10,000 8,452 7,910 5,000 18,047 22,431 6,322 2016 2017 2018 2019 2020 2021 1Q22 KResearch Highlights: The most quoted private research house in Thailand Top of mind research house for the public, including clients of KBank and its wholly-owned subsidiaries 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 101 K KASIKORNTHAI KSecurities Highlights in 1Q22 March 2022 หลักทรัพย์กสิกรไทย (Bt bn) EKASIKORN SECURITIES Trading Volume (KSecurities vs. Industry)* KS CAGR Y2007-2022: 22% 40,998 (Bt bn) 1,200 1,000 42,000 2,000 1,800 36,000- 1,517 1,600 29,829 30,000- 1,400 24,790 1,119 24,000 21 551 1,296 18,000 20,345 1,251 22,93721,899 22,442 19,549 739 12,37712,486 181772 868 683 812 12,000 8,544 7,962 8,640 430 411 860 6,000- 207 91 117 0 10,960 800 600 - 400 367 - 200 0 Industry Outlook: ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 1Q22 industry trading volume* was Bt10.96trn, increasing 3% YoY. KS trading volume was Bt367bn. KSecurities Highlights: ■KS ranked #11, with 3.35% market share. Majority of revenue came from brokerage. Number of customers account grew 39% YoY to 263,524 customers in 1Q22. (%) 10.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 Total Industry Trading Volume ➡KS Trading Volume Market Share by Trading Volume* 6.1 6.1 6.3 5.1 4.6 4.2 4.95.45.0 5.0 3.8.73.4 3.7 3.43.53.4 3.2 3.1 2.9 2.9 3.0 3.0 2.1 1.9 2.4 2.4 2.1 2.1 1.8 0.0 KS SCBS KTZ BLS TNS MST 4.3 2018 2019 2020 2021 1Q22 Note: *Industry trading volume excluding proprietary trades บริการทุกระดับประทับใจ KSecurities Revenue by Business Investment Banking 4% Brokerage and other 96% 102#52K KASIKORNTHAI KLeasing Highlights in 1Q22 March 2022 ลีสซิ่งกสิกรไทย 开退租赁 KASIKORN LEASING KLeasing vs. Industry ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Thousand Units) 1,500 (Bt bn) 250 1,042 200 1,008 1,000 882 872 792 800 769 762 150 100 500 108 115 115 121 125 90 89 91 97 230 50 2014 2015 2016 2017 2018 2019 Total Car Sales in Thailand 2020 2021 1Q22 Kleasing Outstanding Loans Market Share by Total Outstanding Loans (%)* Industry Outlook: 1Q22 industry car sales totaled 229,895 units KLeasing Highlights: 1Q22 KLeasing loans totaled Bt125.19bn, increasing 9.69% YoY 1Q22 KLeasing NPL ratio was 1.19%, lower than the Thai commercial bank average ratio KLeasing Outstanding Loans Breakdown** 50 31 28 28 27 27 27 29 29 2929 T 25 15 16 16 16 15 12 11 11 1010 8 8 9 1011 8 7 7 8 8 0 TTB AYCAL TISCO SCB 2018 2019 2020 KK KLeasing 2021 ■1Q22 Floorpla Fleet / Finance Lease 19% n 7% Note: Excluding captive and non-bank leasing ** New car includes HP New car, Fleet finance, Finance lease (FL) and Floorplan Used car includes Car to Cash (K-Car / Car registration loan) and other used cars บริการทุกระดับประทับใจ K KASIKORNTHAI KF&E Highlights 1Q22 March 2022 แฟคเตอรี แอนด์ อีควิปเมนท์ กสิกรไทย #KASIKORN FACTORY AND EQUIPMENT Hire Purchas e 74% Other Used Car to Car Cash 2% 15% New car 83% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 103 KF&E Loan Outstanding 24.03 |||||| Industry Outlook: (Bt bn) 30.0 25.11 25.15 25.0 22.88 20.38 20.0 17.63 15.0 10.0 5.0 0.0 2017 2018 2019 2020 2021 1Q22 ◉ 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: 1Q22 KF&E loan outstanding was Bt24.03bn, decreasing 5.59% 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 104#53K KASIKORNTHAI Life Insurance Industry in Thailand 20.0 15.0 (%) 117.5 10.0 16.5 14.0 Premium per % GDP by Country 5.0 6.15.8 6.4 6.26.0 Taiwan South Korea Singapore 7.6 2.11.5.1 2.7 2.83.2 3.344.0 Australia India N Malaysia 2.3 2.3 China 2.4 3.6 3.3 3.4 Thailand S Y2018 ■Y2019 ■■Y2020 1.514 1.3121.2 1.61.41.6 Indonesia Philippines Vietnam ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2020, 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 1Q22 with 11.2% market share of total premium. #4 in life insurance industry in Thailand, in 2021 700.0 600.0 500.0 601.7 627.4 610.9 400.0 503.9 537.5 568.3 600.2 442.5 300.0 391.4 200.0 100.0 Source: Swiss Reinsurance Total Premium (Bt bn) Size of Market by Premium (%) CAGR'12-21: 5% New Business Premium (Bt bn) Market Share by Total Premium in Life Insurance (%) Source: The Thai Life Assurance Association (%) 614.11 200.0 30.0 25.6 180.0 25.0 24.3 24.7 2020 ■2021 1Q22 160.0 140.0 20.0 16.7 120.0 15.0 13.4 100.0 13.2 150.4 80.0 10.0 15.4.72.912.129.3.1 8.18.1 60.0 5.85.8 5.9 5.2554 40.0 5.0 4.4' 4.1 4.5 2.4 2.4 2.2 6.6 69 2.4 20.0 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 ΑΙΑ FWD TLI MTL KTAL BLA AZAY PLT OLIC GT Others Total Premium New Business Premium * New Business Premium in 1Q22 Bt41.0bn Source: The Thai Life Assurance Association Note: Total Premium = New Business Premium + Renewal Premium; New Business Premium First Year Premium + Single Premium บริการทุกระดับประทับใจ K KASIKORNTHAI Bancassurance Highlights in 1Q22 Bancassurance Market Share by Total Premium (%) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (%) 40 34.6 30 27.3 28.8 19.9 20 20 18.4 10 0 ■2020 ■2021 1Q22 2.7 13.6 11.3 10.3 91 9.0 9.8 9.6 8.38.38.3 8.7 4.2 7.8 9.28.5 6.9 3.9 3.83.7 FWD MTL KTAL PLT BLA AIA TLI AZAY GT DLA Others 1.5 1.8 1.9 1.9 1.71.4 2.1 1.7 Bancassurance Market Share by New Business Premium (%) MTL ranked #2 in Bancassurance market #2 in Bancassurance total premium with 13.6% market share #3 in Bancassurance new business premium with 11.9% market share (%) 40 30 30.3 27.4 21.3 20 17.8 14.5 17.1 16.6 11.9 11.1 10.6 10 8.2 8.1 7.7 9.5 10.9 9.2 5.5 www 5.0 3.9 2020 2021 1Q22 3.7 3.6 2.3.34.0 6.1 3.9 3.8 3.7 3.2 2.63.6 0 FWD AIA MTL PLT KTAL TLI DLA GT SELIC BLA 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 105 106#54K 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 ■ Established on 6 April 1951 MTI MTL MTB FVC AIGEN MTIB mtl MUHS THAI LIFI 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) ■Life Insurance Company with Outstanding Management (1st Place Award) 2006 - 2020 (15 consecutive years) resulting in the Company receiving the Insurance Hall of Fame Award 2020 from Office of Insurance Commission (OIC) ■Best Life Insurance Company - Thailand 2021 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% ■ Best Life Insurance Product Thailand 2021 from Global Banking and Finance Review Magazine 51.00% from International Finance Magazine Health Insurance Initiative of the Year 2021 - Thailand from Insurance Asia Magazine Ageas holds 7.83% in MTGH and holds 24.99990% in MTL บริการทุกระดับประทับใจ (Data as of 31 Mar 2022) 107 2020 2021 1Q22 Net premiums earned 72.2 69.4 Net investment income 21.4 22.5 Total revenues 93.6 91.9 Long-term technical reserve increase from the previous period 26.0 25.6 Net benefit payments and insurance claims 43.0 41.6 Commissions and brokerages 9.1 8.6 Other underwriting expenses 0.6 0.7 k KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Muang Thai Life Assurance (MTL) Information Summary mtl MUANG THAI LIFE เมืองไทย 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. 15.7 5.3 21.0 3.9 12.6 1.7 0.6 Operating expenses & Other 5.2 5.5 1.0 Key Financial Targets Total Expenses 83.9 82.0 19.8 Bt bn 2017 2018 2019 2020 2021 1Q22 Profit before income tax expense 9.7 9.9 1.2 Income tax expense 1.8 1.8 0.2 Total Premium (after refund) 102.7 94.5 83.8 75.3 73.0 16.9 Net profit (loss) 7.9 8.1 1.0 % Growth 6% -8% -11% -10% -3% -6% Statements of Financial Position (Bt bn) 2020 2021 1Q22 2020 2021 1Q22 Total Assets 556.4 607.5 ROE (%) 11.3% 10.2% 8.6% 614.7 Total Liabilities 483.4 520.9 529.5 ROA (%) Total Equities 73.0 86.6 85.2 Risk-Based Capital (RBC) 1.4% 323.3% 1.4% 1.2% 359.7% 323.9% Source: Muang Thai Life Assurance, data based on book value except for RBC บริการทุกระดับประทับใจ 108#55k KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Investment Portfolio and Insurance Premium MTL Investment Portfolio: MTL Total Premium Fixed Income accounted for around 85% (bn) Debenture 26.8% 100 94.5 90 83.8 75.3 80 73.0 Total Premium Growth MTL Industry 71.7 Stock 11.2% 70 (%YOY) 60 57.9 53.8 49.3 Y2018 -8% 4% 50 40 Y2019 -11% -3% Note 3.4% 26.0 30 22.8 23.7 21.6 16.9 Y2020 -10% -2% Policy Loan 20 11.1 Gov & S/E 3,5%- 10 5.8 Y2021 -3% 2% Trust Bond 0 1Q22 -6% -2% 3.3% 49.9% Deposit 2018 2019 2020 2021 1Q22 0.4% Investment Property 0.8% Mortgage Loan 0.6% New Business Premium Renewal Year Premium ■Total Premium 100% Assets Under Management (AUM)* (1Q22): Bt 571,576 bn MTL Total Premium by Products: Ordinary product accounted for around 86% in 1Q22 80% 60% 40% 20% 0% 2018 Group 2019 Personal Accident *Remark: Invested Assets + Investment Property 2020 ■Industrial 2021 1Q22 Ordinary Source: The Thai Life Assurance Association MTL Total Premium by Channels: Bancassurance accounted for about 49% in 1Q22 100% 80% 60% 40% 20% 0% 2018 ■ Other 2019 ■Direct Marketing 2020 2021 1Q22 Bancassurance ■Agents Source: The Thai Life Assurance Association (TLAA)/2019 - 1Q22 data from TLAA monthly report (new format) บริการทุกระดับประทับใจ K KASIKORNTHAI MTL International Business Expansion ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Current International Business Project (On-going) Cambodia Company Name Sovannaphum Life Assurance Dara Insurance Plc. 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 109 110#56K 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 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE K-Bancassurance Products¹) mtl Muang Thai Life Assurance Products²) KIPANT LES Endowment Life Insurance 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 ความ ครองชีวิต ม 3% ของจำนวนเงินเอาประกันกับ ณ วันเริ่มเมืองคุ้มครองตามกรมธรรม์ หรือมูลค่าเพิ่มขึ้นในระยะนั้น ตามแต่จำนวนใดจะมากกว่า Life coverage is in % of the initial sum insured, or cash surender value at the time, whichever amount is higher 600% Life Coverage End of Policy Year Premium Payment at the ชำระเบี้ยประกันภัย 550% 440% 300% Premium payment at the 220% beginning of policy year 110% De I End of policy year 0 1 2 3 4 5 7 8 9 10 11 12 13 14 15 นาย Cash bonus - - - - - รับเงินจ่ายค้น 5%. ณ ในปีกรมธรรม์ ทุกๆ 2 ปีกรมธรรม์ ยกเว้นในปีกรมธรรม์ที่ครบกำหนดสัญญา - - - - - Receive cash bonus at 5% at the end of policy year for every two polley years. Except at the end of polley maturity Mauty Be 600% Matyre 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 " a 4 " Coverage Loan Amount Scenario 1: Death or total and permanent disability The customers can choose to continue the coverage throughout the contract term or receive cash surrender value Beginning of Policy Year Cash Bonus 220% 110% 330% 111 Maturity 1% Th 1% 1% 1% 1% 1% 1% 1% 196 15 1% Benefit 300% Kifany Maturity Dividend (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. (The amount shown in the schedule below is calculated based on "Maturity Dividend Formula" only.) (3) 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 End of Policy Year 10 11 12 14 15 Term of insurance Premium Payment Scenariol 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 112#57K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE ASCENTHI mtl Muang Thai Life Assurance Products²) K-Bancassurance Products¹) Whole Life Insurance Khumkhrong Talot Chip 99/5 Life insurance with a premium payment of only 5 years, but the coverage continues to age 99 years ตัวอย่าง Example ชำระเบี้ยประกัน นปีกรมธรรม์ Premium payment at the beginning of policy year ความคุ้มครองชีวิต 100% ของจำนวนเงินเอาประกันภัย หรือมูลค่าเวนคืน หรือจํานวนเบี้ยประกันภัยที่ได้ชำระไว้แล้ว (ตามแต่จํานวนโคจะมากกว่า) Life coverage at 100% of sum insured or surrender value or paid premium (whichever is higher) หยุดชำระเบี้ยประกัน Stop premium payment สิ้นปีกรมธรรม์ 0 1 2 8 End of policy r 6 Elite Health Rider Whole Life Insurance Muang Thai Smart Protection 99/7 Whole life coverage: payment premium for 7 years and get coverage to the age of 99 End of Policy Year O Premium Payment at the Beginning of Policy Year 100% (1) Life Coverage 678910-11 Attaining the age of 98 99 Years อายุ 97 ปี อายุ 98 ปี ครบอายุ 99 ปี Age of 97 Age al 98 Attaining the age of 99 When Maturity Benef 100% Maturity Benefic 100% (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). Rider D Health Rider OPD Rider High coverage from 20-100 million Baht/year Je Cover critical illnesses including cancer treatment by Targeted therapy Get it easily and be covered to the max! Je Cover overseas treatment based on coverage area(2) Get coverage for standard private room, ICU room fee, examination fee, medicine cost, operation fee during hospitalization and IPD expenses in a lump sum payment of up to 5 MB per time, with no limit of times per year. 1) K-Bancassurance products are MTL's life insurance products selling through KBank Get it easily and be taken care of extensively until 99 years old. Get it easily and choose what suits you with the lump sum payment option since the first Baht or a deductible option for mare affordable premium. 2) Muang Thai Life Assurance products are MTL's life insurance products selling through MTL sales agents, and/or other channels บริการทุกระดับประทับใจ Receive OPD Coverag Complete Coverage Up to 30 times per year including doctor's fees, d charges, or medical expe The Right Rider This OPD rider is not required to be purchased together with IPD coverage. 113 K KASIKORNTHAI KBank: Other Information ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK บริการทุกระดับประทับใจ 114#58Note: K KASIKORNTHAI Shareholder Structure April 19, 2022 (Record Date) Shareholder Structure Top 10 Shareholders* ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % 1. THAI NVDR CO., LTD.** 19.043 2. STATE STREET EUROPE LIMITED 9.998 3. SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 4.793 Thai Shareholders 57.4% 4. THE BANK OF NEW YORK MELLON 3.511 Foreign Shareholders 42.6% 5. SOCIAL SECURITY OFFICE 2.569 6. (NVDR SOUTH EAST ASIA UK (TYPE A) NOMINEES LIMITED 2.092 = 19.043%**) 7. STATE STREET BANK AND TRUST COMPANY 1.797 8. BNY MELLON NOMINEES LIMITED 1.468 9. HSBC BANK PLC-SAUDI CENTRAL BANK SECURITIES ACCOUNT A 1.134 10. HSBC BANK PLC-PRUDENTIAL ASSURANCE COMPANY LIMITED 0.908 Note: Other Shareholders Foreign Shareholding Limit 49% The Top 10 Shareholders are based on individual accounts Total 52.688 100.000 ** 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 K KASIKORNTHAI Credit Ratings As of May 19, 2022 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Foreign Currency Long-term Senior Unsecured Subordinated Debts KBank Local Currency/ National Long-term Subordinated Outlook Debts Government Foreign Local Currency Currency Thailand Outlook Notes S&P's BBB¹) BBB¹) N/A N/A N/A Stable¹) BBB+ A- Stable Moody's Baa1 Baa1 Baa3 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 บริการทุกระดับประทับใจ 115 116#59K KASIKORNTHAI Organization Chart Auditor Shareholders Corporate Secretary Operating Committee Corporate Secretariat Division ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Board of Directors Management Committee Independent Directors Committee Risk Oversight Committee Audit Committee Advisory Council to the Board of Directors/ Legal Adviser Corporate Governance Committee Human Resources and Remuneration Committee Sales & Service Product Management Private Bank Business Service Fulfillment Business in Overseas Distribution Network Division Transaction and Wealth Banking Division Corporate Business Division Credit Products Division Private Banking Group Money & Capital Markets Business Capital Markets Business Division Customer and Enterprise Service Fulfillment Division World Business Group Channel & Marketing Management Integrated Channels and Business Solutions Division Marketing Management Division Investment Banking Business Division บริการทุกระดับประทับใจ Audit Division Corporate Strategy & Analytics Corporate Strategy and Innovation Division Risk & Resources Management Enterprise Risk Mgmt. Division Data and Analytics Division Finance and Control Division Human Resource Division Note: Effective on 1 January 2022 K 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) (Vice Chairperson) ⚫ Ms. Sujitpan Lamsam • Sqn.Ldr. Nalinee Paiboon, M.D. (Chairperson of the Corporate Governance Committee) • Mr. Saravoot Yoovidhya • Mr. Kalin Sarasin (Chairman of the Risk 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 https://www.kasikornbank.com/EN/about/Pages/board-of-directors.aspx บริการทุกระดับประทับใจ 117 118#60K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sustainable Development Framework and Policy 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. SD FRAMEWORK GOAL COMMITMENT SD POLICY Environment Net Zero Economy Ensuring environmental stewardship towards a net zero society We are committed to preserving the environment and reducing the impact of climate change 1. Net zero bank in our own operations by 2030 2. Decarbonized financed portfolio emissions in line with Thailand's ambition, and at the earliest for key material sectors by 2050 where possible 3. Leader of innovative "Green Finance" agenda in Thailand 4. Beyond finance solutions to support decarbonization in Thailand Bank of Sustainability Society Advance Thai 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. Financial inclusion and financial literacy 6. "Best Place to Work, Learn and Lead" by embedding Green DNA and create future-ready workforce 7. Respect for human rights and diversity 8. Development of youth potential as well as pursuit of environmental, public, and social activities Economy/Governance Responsible Banking Being an accountable bank to create sustainable profitability We are committed to strong ESG principles to be a responsible and accountable bank 9. Business operations defined by good corporate governance practices 10. Adherence to Customer Centricity by initiating financial innovations to meet every aspect of customers' needs 11. Efficient risk management focusing on environmental, social, and governance (ESG) issues 12. Market Conduct and Customer data security and privacy บริการทุกระดับประทับใจ 119 K KASIKORNTHAI Net Zero Commitment As KBank's commitment to be the leading sustainable bank in Thailand, KBank will contribute to the global effort to transition to net zero emission, with the aim of mitigating impacts of climate change, and supporting Thailand and KBank's clients in regional economies to work together in making the transition towards a net zero emission economy. KBank's Board of Directors has resolved to announced the Bank's Net Zero Commitment 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. ✓ 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. Sigratory at TCFD UNEP PRINOPLESFOR NANCE RESPONSIBLE INITIATIVE BANKING Commitment-based Sustainable Finance Initiatives Participating in commitment-based sustainable finance initiatives which are UN Principles for Responsible Banking, TCFD and memorandum of agreement on establishing responsible lending practices. BANG OF THAILAND INTERNATIONAL Dow Jones Sustainability Indices Powered by the S&P Global CSA Sustainability Award Gold Class 2022 S&P Global MSCI FTSE4Good Komb +CDP PRICLE THEN FONTACTIN NATIONAL THSI INVESTMENTLITY ESG100 C ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK PRIDE OF KBank 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 six consecutive years (2016-present) KBank has been classified in the Gold Class of the banking industry from S&P Global Sustainability Awards (2022) (Bronze Class 2018-2020 and Silver Class 2021) KBank's Leadership Level rating is at AA for its ESG performance among emerging market banking sector peers A member of the FSTE4Good Emerging Index for six consecutive years (2016-present) 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) The first Thai commercial bank with A- Leadership Level rating, assessed by the Carbon Disclosure Program (CDP) Included in Thailand Sustainability Investment (THSI) for six years (2015, 2017- present) SET AWARDS ESG 100 certificate 2021 (Certified by Thaipat Institute) The first and only commercial bank in Thailand granted Carbon Neutral Certification (2018-2021) SET Sustainability Awards - Highly Commended in Sustainability Awards granted by the Stock Exchange of Thailand for three years (2018-2019,2021) The first commercial bank in Thailand LCS to receive an Excellence award under The Low Carbon and Sustainable Business Index (LCSi) award *Note: Scope 1: Direct emissions from the activities of an organization including stationary combustion, fleet vehicles (organization-owned), chemical treatment of wastewater, as well as fugitive and process emissions. Scope 2: Energy-indirect emissions including an organization's purchased energy such as electricity, heat and steam. More information on our Sustainable Development can be found on our website and KBank's Sustainability Report 2021. บริการทุกระดับประทับใจ Sustainability Report Award 2021 Sustainability Disclosure Award granted by Thaipat Institute 120#61K KASIKORNTHAI KBank Strives towards Net Zero ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ Supporting Thailand and our clients in regional economies on their decarbonization journeys Thailand's aspirations* 2025 2030 2050 Carbon Neutrality ■ Reduction of GHG emissions in various sectors ■ 50% renewable electricity generation share for new power generation capacity 2065 Achievement of Net Zero GHG Emission KBank's Roadmap Scope 1&2: 21% GHG emission reduction ■ Scope 3: Supporting our customers in the transition to a net zero economy and pioneering green banking products Scope 1&2: Achieving Net Zero Scope 3: Allocating at least Baht 100-200 billion in sustainable financing and investment Scope 3: Achieving net zero in our financed portfolio in line with Thailand's aspirations; accelerating this journey where possible ■ Contributing to global effort to transition to net zero emissions by 2050; will align with Paris Agreement goals Source: * Thai Prime Minister's statement at the World Leaders Summit during the 26th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), November 1, 2021 บริการทุกระดับประทับใจ 121 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Example of Economic Aspect: ESG Risk Management ■KBank has integrated ESG considerations into the risk management framework, with particular attention given to risks related to lending, investment, products, and services At the management level Lending activities are structured so as to demonstrate environmental and social responsibility as follows Risk Oversight Committee Board of Directors Corporate Governance Committee Sustainable Development Sub-committee Credit Risk Management Sub-committee Business Units Monitoring and Controlling Function ■Board of Directors Approving risk management policy, frameworks, risk limits and risk appetites ■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 ■Sustainable Development Sub-committee Overseeing and ensuring effective practice of ESG risk management and sustainable development operations ■Credit Risk Management Sub-committee Determining and approving credit policy addressing environmental and social impact management in lending and investment activities ■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 122#62K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Example of Economic Aspect: ESG Risk Management (Con't) ■KBank has integrated ESG considerations into the risk management framework, with particular attention given to risks related to lending, investment, products, and services 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, for example 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. o 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, 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 о 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. ESG Lending: о 100% of Project Finance and medium enterprises (and above) requests must be processed through the Environmental, Social and Governance (ESG) assessment procedure Credit requests approved with ESG Assessment*: Baht 420 billion Project Finance: Baht 13 billion о Commercial credits for medium enterprises and above: Baht 407 billion Note: KBank's Performance as of December 2021 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Examples of Economic Aspect: CG and Anti-Corruption Corporate Governance ■ Reviewing KBank practices under Thai IOD, ASEAN CG Scorecard, and Dow Jones Sustainability Indices (DJSI) criteria ■ 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 ■ Revising the means of acknowledgment of compliance with the Code via an e-Learning system Note: Thai IOD = Thai Institute of Directors; CG = Corporate Governance 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 approval of 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 123 124#63K KASIKORNTHAI Examples of Social and Environmental Aspects Social Aspect 1. Financial Inclusion and Financial Literacy Providing financial knowledge and adding new channels of financial access for all customer categories and underprivileged groups Supporting customers' financial discipline to alleviate household debts 2. Human Resource Management 2.3. Embracing equitable treatment for employees regardless of differences Providing various channels for complaints and suggestions Developing employee skills and abilities in alignment with K-Strategy Providing a healthy and safe workplace 3. Human Rights Operations . Operating business in line with the United Nations Guiding Principles on Business and Human Rights throughout the value chain Implementing human rights risk assessment covering all operations of KBank, K Companies, P Companies, suppliers, and joint ventures 4. Social Contributions . . Applying social activity framework based on the Business for Societal Impact (B4SI) since 2015 Supporting various projects by extending budgetary support and donating items to create positive impact for society and communities 210,937 GREEN DNA Volunteer Hours ZERO Human Rights injury Human Rights Policy and Due Diligence Process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Environmental Aspect 1. Management of Climate-related Risks and Opportunities Assessing climate scenario analysis quantitatively and qualitatively Reporting based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations ...N. Decarbonizing financed portfolio emissions in line with Thailand's ambition Innovating beyond finance solutions to support decarbonization in Thailand Stop financing to new coal-fired power generation but continue to finance utilities Completely discharge existing loans on coal-fired power plants by 2030 2. Financial Support To Environmentally Friendly Businesses ..3. Allocating at least Baht 100-200 billion in sustainable financing and investment by 2030 Offering financial support to renewable energy power and environmental conservation projects Issuing sustainability bonds and investing in green bonds Introducing K Climate Transition and K-CHANGE 3. Environmental Management in KBank Appointing CEO to act as Chief Environmental Officer to drive KBank's environmental operations Targeting to become Net Zero in our own operations (Scope 1, 2) by 2030 NET ZERO GHG Emissions (Scope 1 & 2) 90,172.91 tons CO2 (7.79% decrease from base year 2020) The first Thai commercial bank to offset carbon to achieve carbon neutral. 2021-2025 Target: Total megawatts (MW) 15% of domestic market by providing various types of financial support and services to renewable energy projects Green Loans & Investment, totaling Baht 65.1 billion** • Green loans: Baht 17.5 billion • Environmental and Social- related Investment Funds: NAV Baht 21.7 billion • Investment in Green Bonds: Baht 16.4 billion Issuing Sustainability Bonds: Baht 9.5 billion Issuance and Underwriting of Green Bonds Note: * Business for Societal Impact (B4SI) is originally named as London Benchmarking Group (LBG) standard is used to evaluate the monetary value of corporate spending on social responsibility activities, including donations, hours of volunteer work and proportion of community investment. ** KBank's Performance as of December 2021 บริการทุกระดับประทับใจ 125 K KASIKORNTHAI Public Recognition Highlight: 2021-1Q22 THE Asset 1Q22 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) - 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 Business+ MORNINGSTAR - Best Fund House Domestic Fixed Income (KAsset) ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 2021 Sustainability Award. Sustainability Award, Silver CDP -B score from 2020 Carbon Disclosure Project (CDP) Class of the banking industry- S&P Global RETAIL BANKER Asset ThaiBMA MORNINGSTAR การเงินธนาคาร - Bank of the Year 2021 - Winner- Best Retail Bank Thailand Winner- Excellence in Service Innovation Highly Commended Achievement- Best Social Media Marketing Campaign ASIAMONEY Highly Commended Achievement- Best Payment Innovation Best for ESG in Thailand Highly Commended Achievement- Excellence in SME Banking Best for HNW in Thailand The Asset ESG Corporate Awards 2020 Platinum Award: Excellence in ESG Digital Private Bank of the Year in Thailand Best Service Provider-Cash Management Project Finance House of the Year ADB Best SME Deal (WBG) Best Service Provider-E-Solutions Partner - Battery Storage Deal of the Year Power Deal of the Year - Green Project of the Year Highly Commended: Outstanding - Best Private Bank-HNWIS Private Bank-Southeast Asia Best Private Bank Thai Baht Bond Research - Most Prominent Fund House in Corporate Bond Market Best Bond House Top Underwriting Bank Best THOR Engagement PRIVATE BANKER- Highly Commended: Best Bank for Sustainability and ESG leadership Best Retail Bank in Thailand THE ASIAN BANKER Best Merchant Service (Facebook Pay) Best Fund House - Domestic Equity 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) AKCE - Best Consumer Digital Bank in Thailand 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 THE BANKING: FINANCE - Best Private Bank Best Sustainable Bank - Best Private Bank for eum Digital Marketing & Communication - Asia Thailand Domestic Cash Management Bank of the Year Human Resources Thailand Domestic COVID Winner: Best Digital Bank for CX - Thailand (LINE BK) Management Initiative of the Year 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 IDC - Highly Acclaimed: Best Digital CX Partner/Vendor (LINE BK) - Excellence in Leadership Development - Excellence in Innovative Use of HR Tech Winner: Outstanding Innovation in Digital CX - Investment Product/Service Winner: Outstanding Innovation in Digital CX - Platform/Website Winner: Best Private Bank Thailand - Highly Acclaimed: Best Private Bank for client Experience Retail Outward Remittance Infrastructure - Thailand IDC Future Enterprise of The Year 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 Best OIS Data Contributor 2020 Capgemini Efma Winner: Bank + NewTech category (LINE BK) Asia Bankers Club - The Best Office Architecture Thailand 2021-2022 (KBTG) บริการทุกระดับประทับใจ REFINITIV Note: CX Customer Experience 126#64K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Banking System and Regulations Update บริการทุกระดับประทับใจ K 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) 127 6 SFIs Bt Billion 24,000 Bt Billion souilu 20,000 17,004 17,765 18,869 19,358 20,301 21,672 21,702 24,000 20,936 21,880 22,050 20,000 16,843 17,707 18,463 19,178 EXIM 16,000 29.9% 30.0% 30.4% 30.2% 30.4% 30.3% 29.9% 12,000 16,000 12,000 26.8% 26.5% 26.7% 26.5% 26.8% 27.0% 26.7% 8,000 8,000 13 Commercial Banks* 4,000 70.1% 70.1% 70.0% 69.6% 69.8% 69.6% 69.7% Bangkok Bank 0 4,000 0 I 73.3% 73.2% 73.0% 73.2% 73.5% 73.3% 73.5% sumans-aine ธนาคารไทย 2016 2017 2018 2019 2020 2021 Feb-22 ■SFIs Commercial Banks 2016 2017 2018 2019 2020 ■SFIs Commercial Banks 2021 Feb-22 Net Loans Inow SCB Deposits Bt Billion 16,000 Bt Billion 18,000 ttb CIMB O O KIATHAKIN BANK 14,000 I 12,000 10,000 10,470 10,602 11,061 11,633 11,859 12,579 21.9% 22.8% 22.9% 22.8% 22.1% 11.3% 12.3% 22.7% 12.5% LH BANK ICBC Standard Chartered S I 8,000 6,000 14.6% 15.0% 15.0% 16.9% 18.1% 15.8% 18.1% 16.4% 4,000 15.3% 15.1% 16.4% 16.8% 16.4% 2,000 16.8% 17.5% 17.5% 17.4% 16.8% 16.9% 16.3% 16.3% 12.9% 13.6% 15.1% 15.4% 15.7% 15.8% 15.5% 16.1% 12.8% 16.4% 16.8% 13,258 13,366 Other 16,000 11.2% 11.3% ttb 14,000 9.9% 10.0% 12.4% 12.5% 16.7% 14,472 15,032 15,365 Other 12,099 12,578 13,057 10.5% 10.7% ttb 11,196 11,359 20.2% 8,000 ■ KTB 18.2% BBL 6,000 4,000 15.1% SCB 2,000 ■BAY 12,000 ■KBank 10,000 21.2% 20.6% 9.4% 8.9% 8.9% 20.6% 21.5% 21.5% ■BAY 11.7% 11.8% 12.6% 10.9% 11.3% 11.9% ■KBank 15.5% 15.8% 17.1% 16.2% 18.6% 0 9.7% 15.3% 15.8% 19.1% 17.4% 18.2% 18.6% 16.8% 17.8% 17.3% 17.1% 16.5% 16.8% 16.4% 16.3% 17.2% 17.1% 16.2% 15.8% KTB 17.0% 17.4% 17.7% 16.5% ■BBL 18.0% 17.7% 17.2% 17.7% 17.6% SCB I *The integration of TMB Bank and Thanachartbank was completed in Jul-21. 0 I 2015 2016 2017 2018 2019 2020 2021 Mar-22 2015 2016 2017 2018 2019 2020 2021 Mar-22 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 128#65K 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) 153.3% Penetration Mobile Internet 1) (Mobile internet numbers) 60.1% Penetration Broadband Internet 1) (No. of households using internet via broadband) 80.0% Penetration Social Media 2) (No. of Facebook users) Prompt Pay พร้อมเพย์ 69.5 138.2% 62.8% Penetration Million PromptPay 4) Penetration (Total registration) Mobile Banking 4) (No. of accounts) Internet Banking 4) (No. of accounts) 20.7 billion transactions (+54.3%, YoY) Bt459.4trn (+3.6%, YoY) Thailand e-Payment ³) (Volume and Value) 187.3% 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 Dec-21, 2) As of Feb-22, 3) As of Dec-21, 4) As of Feb-22, 5) As of Jan-22 บริการทุกระดับประทับใจ K 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 (FIs) 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 129 130#66K 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 February 2022) Insured Deposit Under the amending the Deposit Protection Agency Act 11 August 2012-10 August 2015 Up to Bt50mn 11 August 2015-10 August 2016 Up to Bt25mn 11 August 2016 - 10 August 2018 11 August 2018 - 10 August 2019 11 August 2019 - 10 August 2021 11 August 2021, onwards 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 112,759,352 98.36 3,366,338 1,726,161 1.51 4,236,673 21.73 27.35 99,729 0.09 1,478,418 9.55 29,695 0.03 1,035,957 6.69 24,231 0.02 5,370,755 34.68 114,639,168 100 15,488,141 100 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 131 K KASIKORNTHAI Regulations Update Capital (Basel III) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Pillar2: BOT revised Pillar2 regulation to enhance risk management and capital adequacy assessment as well as emphasize on ESG risk management. The revision become effective from 1 Jan 2022 onwards ■BCBS has finalized the 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 having good governance, supervision of risks, and protection of customers are exempted from this investment ceiling 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 linkage; 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 ■Mar-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 tentatively effective in 2024. ➤ 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 resulted from TFRS 17 is still under investigation. *Note: D-SIBS = Domestic Systemically Important Banks CVA Credit Valuation Adjustment, Source: The Bank of Thailand and KResearch บริการทุกระดับประทับใจ 132#67K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT Consultation Paper: Repositioning Thailand's Financial Sector Digital Technology Leveraging on Technology and Data to Drive Innovation 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 towards 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 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Basel III: BOT Minimum Capital Requirement Transitional Arrangement for Capital Requirement 133 All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) Tier 1: Min. Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 6.625% (6.0%+0.625%) 7.25% (6.0%+1.25%) 7.875% (6.0%+1.875%) 9.0% (6.0%+2.5% +0.5%) 2016 2017 2018 2019 2020 2021 2022 2023 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 5.125% (4.5%+0.625%) 5.75% (4.5%+1.25%) 6.375% (4.5%+1.875%) 7.5% 8.0% 8.0% 8.0% (4.5% +2.5%+0.5%) (4.5%+2.5% +1%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) 8.0% (4.5%+2.5% +1%) 9.5% (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%) CAR: Min. Total Capital Ratio (after conservation buffer and D-SIBS buffer) 9.125% (8.5%+0.625%) 9.75% 10.375% (8.5%+1.25%) (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%) Countercyclical Buffer (Subject to the BOT consideration)*** 0.0-2.5% 12.0% (8.5%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 0.0-2.5% Leverage Ratio Parallel run period (Tier 1/Exposure) ≥ 3% Effective in 2023 (Tentative) Liquidity Coverage Ratio (LCR)**** Effective (Phase-in) (Liquid Assets/Net Cash Outflows within 30 days) ≥ 100% LCR ≥ 60% LCR ≥ 70% LCR ≥ 80% Effective in Jul-18 LCR ≥ 90% LCR ≥100% LCR ≥100% LCR≥ 100% LCR ≥ 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% 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 174%, 158% and 161% as of December 2021, June 2021 and December 2020, 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 134#68Tier 2 capital Tier 1 capital k KASIKORNTHAI Capital Definition Change (Consolidated) Basel II Tier 1 • Issued and paid-up share capital • • Premium on ordinary shares Legal reserve and Retained earnings Minority interest, Preferred stock • • Hybrid Tier 1 (<15% of total Tier 1) Deduction of Tier 1 Goodwill, Treasury stock, Deferred tax asset Investment in insurance (50% Tier 1 and 50% Tier 2) Long-term subordinated debt • 1 2 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 ⚫ 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 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 K 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 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) 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. 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. 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 **Tentatively effective บริการทุกระดับประทับใจ 136 135#69K KASIKORNTHAI K Government Policy บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Sources and Uses of Public Funds FY2022 Budget FY2022 budget act was approved in August 2021 and was published in the Royal Gazette on September 20, 2021. Budget Planning Tax Revenue + Non-Tax Revenue (Bt2.40trn) + Borrowing under FY2022 Budget Act (Bt700bn) FY2022 Budget (Bt3.10trn) = General Budget (Bt2.49trn or 77%) + Investment Budget (Bt0.61trn or 20%) + Principal Repayments (Bt0.10trn or 3%) Budget Execution Budget Disbursement (100% target disbursement rate + carry-over) General Administration (Bt1.36trn or 44%) ■ Defense ■Homeland security Economic Affairs (Bt339bn or 11%) • 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 (Bt1.40trn or 45%) ■ Education ■ Universal Healthcare Extra-Budget Borrowing Extra-Budget Borrowing under Special Act/Decree To relieve the impact of the COVID-19 outbreak, the government approved emergency decree that allows the Finance Ministry to borrow up to Bt500bn Notes: Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year. IFF = Infrastructure Fund, PPP = Public-Private Partnership, SFIS = Specialized Financial Institutions บริการทุกระดับประทับใจ 137 138#70K KASIKORNTHAI Government Fiscal Budget 1400 1200 1000 800 600 540 360 600 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Thai parliament approved FY2022 budget worth Bt3.10trn, with a deficit of Bt700bn ■ Implementation of FY2022 budget effective October 2021 ■To relieve the impact of the COVID-19 outbreak, the government approved an emergency decree allowing the Finance Ministry to borrow up to Bt500bn 400 390 700 450 609 200 450 469 163 100 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Budget Deficit Extra-Budget Borrowing Key Points Economic Policies ■2021 Budget Act ■2022 Budget Act ■FY2021 budget at Bt3.29trn with a deficit of Bt609bn ■FY2022 budget at Bt3.10trn with a deficit of Bt700bn Implementation Process FY2021 ■ Effective date: October 7, 2020 FY2022 ■ Effective date: October 1, 2021 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 - NLA = National Legislative Assembly; PPP = Public-Private Partnership Sources: The Ministry of Finance and KResearch (as of October 2021) บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Public Debt to GDP and Fiscal Budget Public Debt Budget Disbursement Rate million Baht % 10,000 100 65 90 9,500 Public Debt (Ihs) % to GDP (rhs) 60 80 9,000 70 8,500 63.29 60 57.55 8,000 50 1.29 7,500 50 40 .5 37.62 7,000 30 31.73 445 23.00 6,500 20 10 6,000 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 40 40 FY 2022 FY 2021 FY 2020 Jul-21 Sep-21 Nov-21 Jan-22 Mar -22 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY22 Budget FY22 target ■■Public debt to GDP ratio rose significantly to 60.58% in March 2022. 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 62.69% in FY2022 Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO) Total Budget Bt3.10trn ■Government budget disbursement rate for 8MFY2022 is 63.29%, up 3.58% from 59.71% in 8MFY2021 บริการทุกระดับประทับใจ 8M FY2022 actual Unused FY22 Budget Bt3.10trn (100%) B1.96trn (63%) - General Budget Bt2.49trn - Investment Budget Bt0.61trn Bt2.49trn (100%) Bt0.61trn (100%) Bt1.70trn (68%) Bt0.26trn (43%) Bt1.14trn (37%) Bt0.79trn (32%) Bt0.35trn (57%) 139 140#71K KASIKORNTHAI Relief Measures for COVID-19 Impacts ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Phase 1 Measures - Soft loans worth Bt150 billion MOF Package Size Measures BOT Package Size Bt 400 billion Provide liquidity for bond mutual funds Bt 1.0 triillion - 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 K KASIKORNTHAI Relief Measures for COVID-19 Impacts ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Measures from Government, BOT, and SEC for Businesses and Individuals Market Stability and Liquidity (Government, BOT, and SEC) For Businesses ■ Financial Markets: BOT, MOF, & SEC o Bt1trn Fixed Income Fund: BOT set up a special facility to provide liquidity for mutual funds. Commercial banks purchasing investment units can use the eligible underlying unit trust as collateral for liquidity support from the facility • Bond Markets: BOT will purchase bonds to provide liquidity and lessen volatility in the bond market ■ Corporate Bond Stabilization Fund (BSF): BOT • Bt400bn in bridge financing to high-quality firms with bonds maturing during 2020-2021 at higher-than- market 'penalty' rates. (Issuers must raise majority of funding through other means such as bank loans or capital increase) ■ Reduce FIDF Fee: BOT • FIDF fee cut from 0.46% of deposit base to 0.23% to 2022, supporting lower reference lending rates ■ Tax Relief: Government • Deduct 3 times for salary costs for SMEs that retain their employees • Speed up VAT refunds to exporters of domestic goods to 15 days (online) or 45 days (filing manually) Soft Loans (Government and BOT) For Businesses (Bt680bn) ■ Soft Loans for SMEs: Government and BOT • Gov't: Bt150bn worth of soft loans for SMEs, via GSB, at 2% for 2 years 。 BOT: Bt150bn worth of soft loans for SMEs with credit lines not over Bt500mn (old customers), at 2% for 2 years and 6-months interest free* : Bt250bn worth of soft loans for SME with credit lines not over Bt500mm (old customers) or Bt20mn (new customers) for 5 years with interest not over 5% (0% for the first 6 months and 2% for 2 years) : Bt100bn asset warehousing programme ■ Soft Loans for Entrepreneurs Registered with the Social Security Office: Government o Bt30bn worth of soft loans at 3% for 3 years For Individuals (Bt80bn) ■ Soft Loans for Individuals: Government o Bt40bn worth of soft loans at Bt10,000 per person at 0.1% (no collateral) via GSB & BAAC (Year 2020) o Bt20bn worth of soft loans at Bt10,000 per person at 0.35% (no collateral) via GSB & BAAC (Year 2021) o Bt20bn worth of soft loans at Bt50,000 per person at 0.35% (with collateral) via BAAC (Year 2020) For Individuals ■ Household: Others (Government) o Reduce water and electricity bills for March - May 2020, February - March 2021, May-June 2021, July- August 2021, and refund meter fees o Help water and electricity bills for state welfare cardholders (October 2021 - September 2022) ■ Work Force: o 3-month payment of 62% of wages for 2020 and 50% of wages for 2021 to people under SSF, if their employer closed their business or if the government ordered business operations suspended o Reduce SSF contribution in 2021 and 2022 o 3-month Bt5,000 monthly payments to workers not covered by the SSF in 2020 o Give Bt9,000 (Bt7,000 and Bt2,000) for February - June 2021 to workers not covered by SSF o Give Bt6,000 (B4,000 and Bt2,000) for March - June 2021 to workers covered by SSF (Section 33, We Love Each Other program) o Give Bt5,000 to night workers (December 2021) ■ Economy and Health: o Tax exemption on risk payments for medical workers o Bt80-100bn from ministries to use as stimulus funds ■ B500bn borrowing decree in 2021: o Bt30bn for health-related plans 。 Bt300bn for relief measures, including workforce o Bt170bn for economic recovery plans Notes: BOT = Bank of Thailand; SSF=Social Security Fund; GSB = Government Saving Bank; BAAC = Bank for Agriculture and Agricultural Cooperatives; SFIS = Specialized Financial Institutions The BOT provides soft loans at 0.01% to banks to lend to SMEs; amount to not be over 20% of each SME's outstanding loans; government pays for first 6-months interest; in case of NPLs, the government will support 60-70% of additional reserves for loans - On October 16, 2020, the BOT extended the registration period for another six months and also allowed banks to provide soft loans to the listed companies in the Market for Alternative Investment (MAI) Source: MOF, BOT and KResearch บริการทุกระดับประทับใจ 141 142#72K KASIKORNTHAI BOT's Relief Measures for COVID-19 Impacts ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Providing tailor-made assistance to SME and retail customers during the COVID-19 pandemic 2020 2021 2022 2023 BOT Sustainable Long-term Debt Restructuring Debt Restructuring BOT Asset Warehousing ¹); Debt restructuring through Asset Warehousing with buy-back options within 3-5 years Liquidity Injection Debt Consolidation for Individuals: • Consolidate unsecured loans, hire purchase, and housing loans from same creditor to utilize collateral. For combined unsecured loans, interest rate capped not higher than the Minimum Retail Rate (MRR), while loan repayment period can be extended according to debt service ability of debtor. • Extend Debt Consolidation scope 2) to be more flexible by allowing debtors to combine housing loan and retail unsecured loans held at different lenders to be consolidated into a single institution via refinancing. Consolidated retail loan interest rate capped at housing loan interest rate +2%. Reducing minimum credit card payment rate: Reduce minimum payment on the total credit card outstanding amount of at least 5% in 2020-2022, at least 8% in 2023, and at least 10% from 2024 onwards BOT Soft Loans (supported by TCG credit guarantee scheme) 1): Up to 7-year terms, at average interest rate of 5% p.a. for five years (2% for the first 2 years) with 6 months interest free Note: 1) According to the Emergency Decree on Financial Rehabilitation and Recovery to support Businesses affected by COVID-19 (B.E. 2564), dated April 19, 2021. 2) According to the BOT's circular Re: Guidelines for Providing Assistance to Debtors Affected by the COVID-19 Pandemic (Long-term Debt Relief Measures via Refinancing and Debt Consolidation), dated November 16, 2021. บริการทุกระดับประทับใจ 143 K 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" Key Strategies Security "Prosperity" 2 Competitiveness enhancement Development and Empowerment Human Capital 4 Broadening Opportunity and Equality in Society 6 3 5 Reforming Government Administration Environmentally Friendly growth "Sustainability" " 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 I Jun17: NLA passed the law Aug17: Cabinet appointed committees Jun18: Cabinet endorsed the plan Jul18: NLA approved the plan 2022 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) I Development Plan (2027-2031) บริการทุกระดับประทับใจ 2036 The 15th National Economic and Social Development Plan (2032-2036) 144#73K 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 (Page 128) ■ 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 (Page 132) ■ Eastern Economic Corridor (EEC): Area for facilitating and attracting investment in 10 innovative target industries to transform Thailand into Thailand 4.0 (Page 136) ■ 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 KASIKORNBANK ■ 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: 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) 145 K KASIKORNTHAI Government Policy: Short-term Policies ■Government Budget: ➤ Fiscal budget deficit in FY2021: plans for Bt609bn deficit to provide additional supports to Thai economy amid COVID-19 outbreak ■Relief Measures for COVID-19 Impacts: Helping financial market stability and liquidity, and business, work force, and individuals through soft loan programs and relief measures ■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 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) ■Short-term Stimuli (continue): ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ➤ 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) 2) Shop Dee Mee Kuen - a tax deduction for spending, up to Bt30,000 (1 January 15 Feb 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 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. (May - July 2022) 1) State welfare cardholders: Bt100 subsidy for cooking gas 2) Vendors with state welfare cards: Bt100 subsidy for cooking gas 3) Motorcycle/ Taxi riders (registered with Department of Land Transport): Bt250 baht subsidy on gasohol per month 4) Section 33: reducing contributions to the Social Security Fund under Section 33 from 5 % to 1%, Section 39 from Bt432 to Bt91 per month, and Section 40 from Bt300 to Bt180 per month Sources: Newspaper and KResearch (as of May 2022) บริการทุกระดับประทับใจ 146#74K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Ongoing Government Measures to Assist Cost of Living Household Assistance Energy Prices 39 222222222 Measures мук Details Train and Bus Fares: Bt500 monthly allowance for welfare card holders to use for bus and train service Necessity Goods: A Bt100* 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 Bt45 discount each quarter in welfare card for purchasing cooking gas Allowances (e-Money): Up to Bt 200** for e-Money in welfare card, which can be withdrawed from an ATM Water and electricity price: Reduce water and electricity bills and refund meter fees Diesel Fuel: Government set to increased raise the diesel price cap from Bt30 per litre to Bt32 per litre and the new ceiling price for diesel will be set at Bt35 per litre. NGV and LPG Price: Government lowered the NGV and LPG subsidy, allowing retail selling prices to reflect global market prices ■ NGV price rose to Bt15.59/kg since April 2019, align with global price ■LPG prices are as follows: ➤ Household sector: Current household LPG prices increased to Bt21.2/kg ➤ FT Rate: Fuel Adjustment Tariff (FT) Rate for electricity is set to increase to Bt24.77 (May - August 2022) Jan-10 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 May-19 Jan-20 Sep-20 May-21 Retail Diesel Price Value-added-tax (VAT) Rate On August 24, 2021, the Government announced the following VAT Rates: ■Maintain the 7% value-added-tax (VAT) rate until September 30, 2023 Note: *Effective period July- October 2019 ** Household income exceed Bt30,000 per annum will get Bt 100 for e-Money Source: CEIC,EGAT, newspapers Complied by KResearch บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Public Transport Infrastructure Investment 2015 to 2022 Type of Projects 7. Others 7% 1. High- speed Rails. Source of funds Project Detail (Total Budget) LII 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 33% and Mass- Transit system 16% 2. Motorway & Roads 17% State Enterprise PPP 22% 12% TFF fund 2% 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 2022, public infrastructure investment is estimated to be B264bn or 23.5% higher than 2021* 5.Dual-truck railways 12% 4.Motorway & Roads 13% 3.Air- transport 17% 2.Bangkok & Mass-transit system 24% Project Detail (Expected disbursement in 2022) 1. High-speed Rails (Bt63.3bn) 4. Motorway & Roads (Bt34.3bn) 2. Bangkok and Mass-Transit system(Bt62.6bn) 5. Dual-Track Railways (Bt32.2bn) 3. Air Transport (Bt44.4bn) 6. Marine Transport (B19.5bn) Expected in 2022 Total projects Number of projects 19 Total disbursement Bt264bn Source: Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022 master plan) and KResearch (April 2022) 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 * The budget of Bt1.91trn referring "Thailand strategic development of transport infrastructure 2015 to 2022 master plan" are excluded High-speed train (Bt637.3bn) and Suvarnabhumi airport (Bt104.4bn), but our estimation include both of these projects บริการทุกระดับประทับใจ 148 147#75K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Projections on Budget Disbursement of Public Transport Infrastructure Investment Billion baht 350 326 323 311 296 302 300 282 280 264 247 250 214 200 163 150 129 100 79 84 50 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Notes: -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 April 2022 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK On-going highlight projects under construction in 2022* 149 Projects under construction Expected completion Note year Motorways Bang Pa In Nakhon Ratchasima (M6) 2022 95% in progress Bang Yai Kanchanaburi (M81) 2023 70% in progress Bang Khun Thian - Ban Phaeo (M82) 2025 19% in progress Lop Buri-Pak Nam Pho Mabkabao-Jira Junction High speed rails Bang Yai- Kanchanaburi Motorway Bang-Pa-In-Nakhon Ratchasima Motorway Bangkok-Nakhon Thailand - Chinese (Bangkok - Nakhon 2026 8% in progress Ratchasima) Ratchasima Mass - transit system and Nakhon Pathom-Hua Hin Lad Prao - Samrong 蛋 Suvarnabhumi Airport (Phase II) i Thailand Cultural Center- Min Buri commuter rail lines Yellow line (Lad Prao - Sam Rong) 2023 92% in progress Orange line (Thailand cultural center - 2025 89% in progress Min Buri) Flua Hin - Prachuap Khiri Khan Prachuap Khin Khan - Chumphon.. Pink line (Khae Rai-Min Buri) 2023 87% in progress Khae Rai-Min Buri Dual-Track Train Dual-Track Railways Mass-Transit System and Commuter Train Nakhon Pathom - Hua Hin 2023 93% in progress High Speed Train Hua Hin - Prachuap Khiri Khan 2023 100% in progress Airport Lop Buri Pak Nam Pho 2023 69% in progress Motorway MabKabao Jira Junction 2023 92% in progress Single Rail Transfer Operator Intermodal Facility Prachuap Khiri Khan - Choom Porn 2023 83% in progress Air transport Suvarnabhumi Airport Phase 2 Suvarnabhumi Airport 3rd runway 2022 95% in progress 2023 Source: Ministry of Transport and KResearch (April 2022) 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 150#76K KASIKORNTHAI Upcoming Infrastructure Projects TOR/Bidding Process /Land reclamation High-Speed Rails: Bangkok-Rayong (3 Airports) Status Expected to start construction Note Preparing for construction + Land reclamation 2022 (Q3) Land reclamation are 99% in progress Marine Transport: Laem Cha Bang phase 3. Preparing for construction (F1*) 2023 Map Ta Phut phase 3 Preparing for building construction (F2*) 2025 Air Transport: U-Tapao Airport Don Mueang Airport Phrase 3 Motorways: Kratuu-Pathong (Phuket) Dual-Track Railways: Den Chai-Chiang Rai, Ban Pai-Nakorn Panom: Mass-Transit System and Commuter Rail Lines: Purple line (Tao Poon-Racha Burana) Orange line (Bang Khun non - Cultural center) Dark Red line (Rangsit Thammasat University) Light Red line (Taling Chan - Siriraj) Red line (Taling Chan - Salaya) 2023 Preparing for construction. 2022 TOR process 2023 Bidding process Land reclamation 2022 (Q4) Land reclamation/ Preparing for construction 2022 Land reclamation 2022 Expect to delay due to a change in TOR 2023 2023 2023 Land reclamation Land reclamation Land reclamation Projects Preparation for approval by Cabinet/ PPP Process /EIA Process** High-Speed Rails: Thai-Japanese (Bangkok - Chiang Mai) Thailand-Chinese (Nakhon Ratchasima Nong Khai) Bangkok-Rayong (3 Airports) F2 Air Transport: Suvarnabhumi Airport Phase 3(North building expansion) Motorways: Bang Bua Thong-Bang Pa In (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) EIA process PPP process Status EIA and PPP process Preparation for approval by Cabinet EIA process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Upcoming Infrastructure Projects by Areas M 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 Orange Line (Bang Khun Non to Thailand Cultural Center) Purple Line (Tao Poon to Rat Buran: TT Rangsit to Bang Pa-In TBangkok to Mahachai 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 Dark Red Line (Rangsit to Thammasat University) Nakhon Pathom to Cha-am ☑ 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 Suvarnabhumi Airport U-Tapao International airport Laem Chabang deep sea port development phase 3 High speed train Bangkok to Hua Hin Map Ta Phut deep sea port phase 3 May be asked for approval by Cabinet in 2022 EIA process Feasibility process Preparation for approval by Cabinet Chumphon to Surat Thani Regional airport development (Krabi) ☑Regional Airport (Nakom Srithammarat) TKatu to Patong in Phuket Surat Thani-Hat Yai-Songkhla Dual Track Railway Mass Transit System and Light Rails High Speed Train Airport Motorway/Expressway Light rail in Phuket Regional airport development (Trang) Hat Yai to Padang Besar Port Hat Yai to Malaysian border Cabinet Process บริการทุกระดมประทับใจ Source Ministry of Transport and KResearch (April 2022) Notes: Some projects are expected to be delay due to COVID-19 situation *F1 Marine transport phase 1 *F2 = Marine transport phase 2. 151 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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: Bt1.7 trn (2018 - Jan2022) from (1) BOI's approved projects (private sector investment) Bt 925 bn (2) infrastructure investment under Public Private Partnership (PPP) Bt 655 bn and (3) government investment from integrated budgeting Bt 82 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) Four Core Areas - 15 Crucial Investment Projects* 'A' 1 U-Tapao airport and aircraft maintenance Chachoengsao A Chonburi 2 Sattahip commercial seaport Laem Chabang port phase #3 Map Ta Phut port phase#3 5 High-speed rail-east route 6 Double-track railway ++++ 8 Highways and motorway Next-generation automotive (EWAV) 9 Aviation industry, Robotics, Smart electronics 10 Advanced petrochemical and Bioeconomy Approved Investment Amount (Bt1.7 trillion during 2018-January 2022) Approved infrastructure investment under PPP Bt 655 bn Government's approved investment Bt 82 bn 11 Rayong Medical hub A 呔 12 Tourism 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 April 2022) บริการทุกระดับประทับใจ BOI's approved investment Bt 925 bn 152#77K KASIKORNTHAI EEC Progress Projects ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Amount Owner Contract Signed Beginning Name of the selected JV 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) 3Q22 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) U-Tapao MRO Bt 8.4bn Royal Thai Navy TBC (Maintenance, Repair Overhaul) To Launch Term of References (TOR) for bidding in June 2022 GPC 4Q22 2025 2025 4Q23 Nov 2021 Laem Chabang seaport (3rd Phase) Bt114bn Port Authority of Thailand and (Gulf Energy Development Pcl + PTT Tank Terminal China Habour) for F Dock Development 2025 (F Dock) (for F1 Dock) 2Q21 C NNC Aug 2020 (NTL Marine + Nathalin + Zhonggang Construction) for Land reclamation project (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 2026 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 April 2022 บริการทุกระดับประทับใจ K KASIKORNTHAI Thailand Economic Figures ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 153 บริการทุกระดับประทับใจ 154#78K KASIKORNTHAI Currency and Interest Rate Outlook USD/THB: End Period Bt 37 32.68 32.9135.97 35.84 32 33 30.60 32.66 32.55 29.98 29.9533.41 33.50 29 0.00 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Rate Trend Fed Funds rate BOT's 1-Day Repurchase rate 3.00-3.25 2.25 2.00 1.50 1.50 1.50 1.50 1.25 1.00 0-0.25 0-0.25 0.25-0150 0.50-0.75 1.25-1150 2.25-2.50 1.50-1.75 0-0.250 0-0.2550 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22F 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22F USD/THB ■ Baht continues to weaken above Bt34.00 per USD amid strong USD as sign of more Fed's tightening policy ■ At the end of 2022, Baht would reach 33.50 per USD as improvements of Thai economy and current account surplus from a recovery of tourism ■ Also, BOT would raise its interest rate in 3Q22, mainly due to inflation concern, supporting Baht and narrowing interest rate gap ■ However, uncertainties on U.S. recession and stagflation, the war in Ukraine and Fed's tightening are main risks to weaken Baht Note: F is estimated by KBank Capital Markets Research (as of June 16, 2022) Fed raised its interest rates by 0.75%, the most since 1994, on 15 June to 1.50-1.75%. The Fed said the interest rate hike in the next meeting would be 0.50-0.75% ■ Fed may raise its interest rates to 3.00-3.25% in 2022 due to high inflationary pressure from the war in Ukraine and China's lockdowns ■ Rising Thai inflation, global tightening pressures and interest rate gap will force the BOT to raise its interest rates twice this year, once in 3Q22 and once 4Q22 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 155 Monthly Economic Conditions: April 2022 2021 Units: YoY %, or indicated otherwise Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 Private Consumption Index (PCI) Non-durables Index Durables Index Service Index Passenger Car Sales Motorcyde Sales -1.6 12.4 -0.1 1.0 -7.2 -8.6 -5.6 -2.9 3.8 1.2 5.6 2.6 0.8 8.1 -4.8 6.0 3.9 2.2 -10.7 -10.9 -8.7 -6.3 -5.0 -2.0 3.1 4.4 -5.0 2.5 0.2 54.9 24.3 12.0 -8.0 22.3 11.4 -7.4 22 -7.8 14.1 12.2 0.2 3.0 3.6 14.1 -0.6 2.3 -48 -8.5 -28 2.0 20 9.9 16.9 14.8 9.8 16.4 6.0 120.4 45.6 23.2 -8.6 38.8 18.8 -13.0 0.5 -20.5 33.6 16.8 -4.0 8.2 65.7 41.7 25.1 -17.4 -28.6 -16.0 -6.9 21.5 15.6 7.0 13.9 -7.6 -9.7 Private Investment Index (PII) 9.8 15.4 25.0 17.8 9.9 5.7 7.4 7.6 5.5 3.6 7.6 3.4 1.8 1.4 Construction Material Sales Index -1.3 -6.2 6.0 -10.8 -18.0 8.1 -1.3 -1.1 -4.2 3.2 -1.7 -1.9 -4.6 7.6 Domestic Machinery Sales at constant prices 19.1 34.5 55.9 43.1 26.3 7.8 15.5 16.3 11.9 8.3 12.9 9.5 4.8 4.0 Imports of Capital Goods at constant prices 17.6 18.1 23.4 21.5 21.5 20.5 13.3 16.3 5.0 3.0 9.6 -6.4 3.9 4.3 Newly Registered Motor Vehides for Investment 0.2 16.6 35.4 11.2 -10.8 +16.0 -9.3 -15.3 5.3 4.5 3.5 8.5 5.0 2.5 Manufacturing Production Index 5.8 17.7 25.5 18.1 3.5 5.3 -0.2 2.4 4.2 6.5 20 2.5 0.4 0.6 Capacity Utilization 63.0 64.0 64.2 64.4 60.1 57.6 61.8 63.4 64.0 65.5 63.7 63.7 63.8 63.7 Agricultural Production Index 1.6 11.8 4.3 4.1 12.0 9.2 1.0 6.0 1.3 2.0 0.9 8.8 4.9 2.8 Agricultural Price Index 3.0 12.5 14.3 10.5 0.7 -6.5 -7.8 -8.1 -3.2 -2.1 4.5 0.4 8.8 10.1 Tourist arrival growth 93.6 NA. N.A. N.A. N.A. N.A. N.A. 1589.2 2882.4 3413.7 1641.2 2564.6 3028.2 3339.0 Exports (Custom basis) 17.1 12.9 41.6 43.8 20.3 8.9 17.1 17.3 24.7 24.2 8.0 16.2 19.5 Price 26 -1.0 1.3 3.6 22 2.4 23 3.3 5.9 6.8 3.6 3.8 4.5 5.0 Volume 15.0 15.4 38.5 40.9 17.8 5.2 14.1 12.6 19.1 19.0 4.1 11.6 13.8 1.5 Imports (Custom basis) 29.8 27.8 62.0 52.4 45.9 47.9 30.3 34.6 20.5 33.4 20.5 16.8 18.0 21.5 In April 2022, private consumption rebounded, due to a less concern on the Omicron outbreak. 14.4 Exports growth decelerated, due to the impact from Russia-Ukraine issue and China's Zero-COVID measure. ■Current account registered a deficit, due mainly to large trade deficit as exports of gold dropped. 9.9 April's headline inflation slightly declined but remained at high level as the Russia-Ukraine war has driven the global energy Price 4.3 7.9 7.0 6.6 3.7 1.9 3.5 5.0 6.4 5.8 9.5 10.8 13.6 13.7 Volume 18.3 12.2 44.0 36.1 31.6 37.0 16.4 14.3 6.7 21.1 8.2 3.1 27 4.7 price. Trade Balance ($ millions) (Custom basis) 3,573 472 997 1,152 183 -1,216 610 -370 1019 354 -2526 123 1459 -1,908 Current Account ($ millions) -10,901.9 -77 -1583 -818 -1590 -2731 -791 1058 346 -1378 -2204 -652 1245 3351 Headline CPI 1.23 3.41 2.44 1.25 0.45 -0.02 1.68 2.38 2.71 217 3.23 5.28 5.73 4.65 Core CPI 0.23 0.30 0.49 0.52 0.14 0.07 0.19 0.21 0.29 0.29 0.52 1.80 2.00 2.00 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ 156#79k KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KR Household Economic Condition Index (KR-ECI) ■ The protracted Russia and Ukraine conflict has substantially driven up energy and commodity prices because the two countries are major producers and exporters of these products. Rising product costs, therefore, caused the KR-ECI for March to decline to 33.4, against the 33.9 reported for February while the 3-month Expected KR-ECI remained at a low level of 36.1, versus the 36.0 percent recorded for February. 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) --3-month Expected KR-ECI 48.0 46.0 44.0 42.0 40.0 38.0 36.0 36.0 36.1 34.0 32.0 33.4 33.9 30.0 Source: KResearch SINGIN 3-month Expected KR-ECI 37.1 36.6 48.8 46.2 46.3 46.1 20.1 21.2 26.5 27.9 ■Mar-22 Feb-22 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 % YoY of MPI K KASIKORNTHAI Economic Condition Highlights: April 2022 Apr22 MPI and CAPU continued to drop MoM, due mainly to concerns on Russia-Ukraine war ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 1Q22 Activities in real estate market still in negative territory WOW% 30 20 0 -10 -20 ླ ༅ • ྣ ེ༷ ༞ 35 55 45 0.6 55 75 63.7 65 %Capacity Utilization Rate -30 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 July-21 Jan-22 MPI (Ihs) %Capacity Utilization (rhs) Apr22 Headline inflation remained at high level, due mainly to the increase of energy, electricity and raw food prices лол % 400% 300% 200% 100% 0% -100% -200% -0.1 -0.16 -0.27 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 Con struct on areas permitted Nationwide Con domin ium Re gistration Nationwide New Ho using registered in BKK and Vicinity Prices of single house, townhouse continued to increase, while land price growth was slow in 1Q22 20.0 4.6588 5.00 4.00 10.0 1.00 2 20.0 -200 -3.00 -10.0 20 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -20 Jan47 May-17 Sep-1 Jan48 May-18 Sep-8 Jan49 May-19 Sep-9 Jan 20 May-20 Sep-Jan21 May-21 Sep-2 Jan22 Headl neCPI (MM-hs) CoreCPI (MDM hs) Headl neCPI (YoY hs) Cor eCPI (YoY hs) Mayy 1Q09 4009 3010 2011 1012 4012 3013 2014 1015 4Q15 3016 2017 1018 4018 3019 2020 1021 4Q21 Singe House (Wth Lard) Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ Townhouse (WithLand) 157 4.6 4.2 3.5 625 Land 158#80k KASIKORNTHAI Economic Condition Highlights April 2022 Apr22 BSI back to below 50-threshold, due to the businesses lack of confidence caused by a rising cost, and CCI continued to drop 48.2 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Apr22 Private consumption rebounded, and investment, especially in construction, improved from the previous month 50% 40% 30% 20% CCI 56 50 40.7 35 %ΥΟΥ 10%- 16.4% 8.1% 1.7% 2.5% 7.6% 2.5% 3.0% -5.5% 0% -10% -20% -30% -40% -50% PCI PII Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Consumer Confidence Index (CCI) Business Sentiment Index (BSI) Foreign tourist arrivals increased, due mainly to a more relaxation of in-bound traveling measures in April 2022 Registered Con struction Imports of Consumer's Consumer's Consumer's Motor Materials Capital Non Durable Durable Service Vehicles Go ods -Jan-21-Feb-21-Mar-21 Apr-21-May-21-Jun-21-Ju-21-Aug-21-Sep-21-Oct-21-Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 Apr22 exports increased at a slower rate, caused by supply chain disruption and Zero-COVID measures in China 50.0 40.0 20.4% 8.9% 9.4% 7.3% 4.2% 50% Export Value (USD Million) 32,000 28,000 Million Person 30.0 -93.6% 0% 24,000 20.0 20,000 10.0 0.0 29.9 32.5 35.6 83.2% 0.29 -50% 16,000 12,000 -100% % YoY 60 50 40 9.9 20 10 8.9 0 -10 8,000 -20 4,000 -30 0 -40 Jan-16 Sep-16 Exports May-17 Jan-18 Sep-18 Exports excluding gold May-19 Jan-20 Exports % YoY Sep-20 May-21 Jan-22 Exports excluding gold % YoY 2014 2015 2016 2017 2018 2019 2020 2021 Apr-22 No of Foreign Tourist Arrival Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), % Tourist Arrival YoY (RHS) University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ K KASIKORNTHAI Exports and Imports:4M22 Exports by Country ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Imports by Country Others 34.9% ASEAN 19.8% CLMV 10.25% Others 19.7% Middle East 10.8% China 23.2% China 9.4% Taiwan 4.1% Middle East U.S.A. U.S.A. 2.8% Hong Kong 12.8% 3.0% Australia EU 3.0% 7.4% Japan 6.9% Japan 5.7% EU 11.7% ASEAN 18.0% CLMV 5.5% 6.8% Top 10 Exports by Product (Customs Basis) Top 10 Imports by Product (Customs Basis) 4M22 4M22 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight % YoY USD Millions Weight % YoY Total Exports, 97,122 100.0% 13.7% Total Imports, 99,975 100.0% 19.1% Motor cars, parts and accessories 8,917 9.2% -11% Crude oil 12,508 12.5% 95.8% Automatic data processing machines and Chemicals 7,176 7.2% 11.5% 6,653 6.9% 0.3% parts thereof Machinery and parts. 7,010 7.0% 2.6% Precious stones and jewelry 6,608 6.8% 169% Electrical machinery and parts 6,741 6.7% 8.4% Rubber products 4,751 4.9% -7.5% Electronic integrated circuits 6,123 6.1% 32.8% Polymers of ethylene, propylene, etc in 3,993 4.1% 15.5% primary forms Iron, steel and products 5,320 5.3% 9.4% Chemical products 3,452 3.6% 22.2% Other metal ores, metal waste scrap, and 4,937 5.0% 23.4% Refine fuels 3,048 3.1% 30.7% products Electronic integrated circuits 3,039 3.1% 17.11% Natural gas 3,973 4.0% 222.3% Machinery and parts thereof 2,913 3.0% 15.1% Jewelry including silver bars and gold 3,796 3.8% -31.5% Air conditioning machine and parts thereof 2,583 2.7% 2.0% Computers, parts and accessories 3,399 3.4% 14.9% Source: Ministry of Commerce บริการทุกระดับประทับใจ 160 159#81K 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% 14.9% 16.0% 22.2% 21.8% 20.6% 4.8% 22.6% 22.7% 21.2% 3.4% 4.8% 4.0% 14.8% 9.1% 7.0% 8.3% 5.4% 5.3% 5.2% 5.0% 4.8% 4.3% 7.7% 6.8% 8.2% 9.9% 8.3% 5.6% 6.2% 11.2% 11.4% 11.2% 11.1% 12.7% 10.2% 15.4% 6.7% 6.1% 7.3% 13.3% 14.9% 15.4% 9.4% 9.5% 9.3% 9.9% 15.8% 10.0% 14.0% 14.5% 9.2% 14.1% 14.0% 13.3% 11.1% 11.0% 12.5% 12.0% 11.8% 8.2% 13.7% 20.3% 24.9% 21.6% 20.0% 20.0% 21.3% 24.9% 10.3% 10.2% 10.1% 9.9% 9.6% 11.5% 8.3% 8.9% 8.2% 10.4% 10.3% 10.6% 11.6% 11.2% 10.3% 4.8% 9.3% 9.5% 8.9% 8.8% 5.5% 7.0% 24.4% 4.9% 4.8% 4.9% 5.7% 5.2% 15.3% 15.1% 14.6% 15.5% 14.4% 13.7% 19.0% 18.9% 13.9% 13.8% 13.4% 13.3% 11.9% 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 ASEAN 5 CLMV EU China Japan USA | Hong kong Middle East Others 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% Electronic machines 42,902 Crude oil 24,139 9.0% 49.7% 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% Precious stones and jewellery 10,045 3.7% thereof -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 Machinery and parts thereof 7,980 2.9% 21.6% 12,954 4.8% 59.9% 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% 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 % YoY 2017 2018 2019 2020 2021 3M2022 35% 2017 2018 2019 2020 2021 3M2022 33.63% 35% 24.79% 28.89% 29.80% 21.49% 25% 19.44% 17.07% 14.44% 25% 18.85% 15% 8.86% 9.54% 12.64% 15% 8.29% 5% 5% olo -5% -5% -15% -15% -25% ASEAN-5 CLMV EU China Japan USA -25% Total Exports ASEAN-5 CLMV EU China Japan USA Total Imports 2021 3M2022 2020 3M2022 Exports Value (Million USD) Share Value (Million USD) Imports Share Value (Million USD) Share Value (Million USD) Share ASEAN-5 8,227 37,080 13.67% 12.85% ASEAN-5 31,868 11.9% 9,056 12.1% CLMV 27,935 10.3% 7,076 11.0% 13,916 5.2% 4,163 5.6% CLMV EU 22,541 8.3% 6,440 10.1% EU 18,711 7.0% 5,199 7.0% China 37,204 13.7% 8,012 12.5% China 24.9% 66,546 17,609 23.6% Japan 24,985 9.2% 6,401 10.0% Japan 35,685 13.3% 8,988 12.1% USA 15.4% 9,612 15.0% 41,768 USA 35,685 13.3% 4,136 5.5% Total 271,174 100.00% 64,035 100.00% Total 267,600 100.00% 74,545 100.00% Source: Ministry of Commerce บริการทุกระดับประทับใจ 162 161#82K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Challenges: Exports Export is expected to mediocre in 2022 amid global trade uncertainties and transitions to structural changes 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 ■Faltering global demand ■THB volatility Exports ■■US trade policy, e.g. measures to reduce trade deficit from 16 major countries ■Trade uncertainties ■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's 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's privileges which grant 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 April 2019) บริการทุกระดับประทับใจ 163 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 47.0 49.5 basic metals rubber and plastics products 50.8 76.4 Investment Value (Bt Bn) 1400.0 867.5 900.0 631.1 511.9 459.5 447.4 361.4 400.0 -100.0 2016 2017 2018 2019 2020 2021 paper and paper products 40.8 textiles tobacco beverages food 50.7 60.7 62.0 74.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2021 2020 1Q2022 Source: The Bank of Thailand (BOT), The Ministry of Commerce (MOC), and Office of Industrial Economics (OIE) (Data as of Jun 2021) Investment Valu Investment value of BOI-approved applications (by Industry)* (Bt bn) 500 400 300 200 100 0 Agriculture Minerals & Ceramics Light Industry 10.17 20.21 4.01 21.14 636178 17.67 0 Metal Processing Electronics & Electrical Chemical Plastic Paper Service & Infrastructure ■ 2018 2019 ■ 2020 ■2021 ■ 3M2022 Technology and Innovation 2017 Source: The Board of Investment of Thailand (BOI) Note: *Figures above indicate investments of approved projects requesting investment promotion benefits from BOI บริการทุกระดับประทับใจ 164#83Million Persons K KASIKORNTHAI Tourism ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Despite bottoming in 2021, Thailand's tourism industry in 2022 will still be far from pre-COVID level %Tourism Revenue to GDP (%) 20% 18.2% 17.9% 11.6% 11.4% 10% 5.2% 6.5% 3.0% 2.1% 6.6% 2.0% 10 0% T 2018 2019 2.2% 2020 3.8%-6.1% 2.9%-4.2% 0.9%-1.9% 2021e 2022f %Foreign tourism revenue to GDP %Domestic tourism revenue to GDP ■ Outlook for tourism sector remains highly uncertain, thus, the number of foreign tourist arrivals in Thailand in 2022 may be around 2-4 million persons ■ If no serious reemergence of COVID-19 prompts government to impose stringent containment measures as in 2021, domestic travel is expected to report steady growth. Preliminarily, KResearch projects Thais will make around 109-155 million domestic trips in 2022 %Total toursim revenue to GDP No. of Foreign Tourists and Domestic Trips 166.0 172.7 180 109-155 130 50 38.2 39.9 90.6 66.7 80 25 30 6.7 0.42 2.0-4.0 0 2018 -20 2019 2020p 2021e 2022f No. of Foreign tourists (persons) -No. of Domestic trips Note: As of Jan 2022, KReseach estimates tourism data for 2021 to 2022 Million Trips (Bt bn) Tourism Revenue 4,000 2,947 2,994 3,000 1,876 1,912 634-1,008 2,000 ,071 ,082 329 1,000 813 480-698 339474 297 154-308 32 0 2018 2019 2020 2021e 2022f ■Foreign Tourism Revenue Domestic Tourism Revenue Total Revenue 22บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: New project launching rebound on the first 2 months; nonetheless, market remain high uncertainly Supply Side: New Housing Completions and New Projects Launched in BMR* Outstanding Mortgage Loans to Individuals and Property Developers to GDP % of GDP 30 125 25 20 16.8 15 10.4 10 1,000 Units 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2011 250 200 146 161 178 151 159 182 174 196 175 163 197 206 197 2012 2013 Demand Side: Transferred Properties in BMR* 2014 2015 2016 2017 2018 2019 1,000 Units New Housing Completions New Projects Launched 170 150 131 133 130 117 124 111 125 14 114 119 110 102 132 108 131 81 127 90 86 115 112 109 66 68 101 70 73 58 50 30 50 10 -10 2006 2007 2008 60.5 2017 2018 2019 2020 2021 2M2021 27.1 166 2021 15.7 7.1 2M21 2M22 20.6 20.3 2M2022 4.7 0 1993 1997 2001 Loans to Property Developers 2005 2009 2013 2017 1Q21 Housing Loans ■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 4.7% in 1Q21, still lower than pre-crisis level ■Supply Side: New housing projects launched in 2M22 increased 121.1% YoY, compare to the low base in the last year ■Demand Side: In 2M22, property transactions contracted 1.5% YoY, with a rise in household debt and high concern about employment security ■Mortgage NPLs among Thai commercial banks was at 3.74% in 1Q21, compared to 3.78% in 2020 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 166 165#84k KASIKORNTHAI Household Borrowing Household Borrowing to GDP Old Definition New Definition ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL for Consumption Loans of Thai Commercial Banks % of Loans % of NGDP 100 89.7 90.1 79.7 79.4 78.4 79.9 80 71.8 59.3 8.8 .5 60 12.0 12.7 7.6 8.3 13.4 13.3 9.4 9.7 15 10.6 12.3 12.2 10 25.3 25.3 23.1 23.1 22.3 22.3 40 28.9 22.3 24.4 19.6 18.9 225050 19.39 2.73 20 7.7 11.2 15.1 24.5 29.5 33.5 33.7 33.5 34.3 38.4 38.7 2001 2005 2009 2013 2017 2021 11.9 13.2 13.9 0 1994 1996 1997 2010 2012 2014 2016 2018 Commercial Banks Non-Bank Fls SFIS Others 2019 2020 2021 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 160 % 40 125.9 109.1 120 27.9 28.1 29.1 28.4 90.1 89.0 27.2 27.0 30 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 90.1% in 2021, and is expected to remain high in 2022 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 rose to 2.73% in 2021 from 2.85% in 2020 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 167 KASIKORNTHAI BOT Macro Prudential Policy ■New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions LTV Criteria for Mortgage Loans (Effective: October 20, 2021 - December 31, 2022) Criteria for Credit Card / Personal Loans (Effective: September 1, 2017) New (Including Top-up loans) 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 < Bt10mn ≥ Bt10mn House Condo. House & Condo. ≤ 100%* 100% 100% ≤ 100%* 100% 100% Credit Line (times of average monthly income) Income Credit Line Credit Line <Bt30,000 ≤1.5 times Income < Bt30,000 < Bt50,000 ≤3 times ≤5 times Credit Line ≤ 1.5 times <3 institutions Credit Line ≤ 5 times ≤ 100% 100% 100% >Bt30,000 ≤ 5 times 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: > Bt50,000 ≤ 5 times For credit card and personal loans, credit line will be raised to 2 times for customers who have monthly income below 30,000 Baht per month, effective until December 2022. 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 Picofinance* Regulated by the BOT 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 Credit Line Pico Plus* Capital Fund Interest Rate Ceiling > Bt5mn Bt50,000 ≤ 36% > Bt10 mn < Bt100,00 <36% for first Bt50,000 > Bt50 mn Depends on debt-servicing ability <28% for the amount in excess of Bt50,000 ≤24% <24% Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province บริการทุกระดับประทับใจ 168#85K 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 30% 12 25.9% 9.7 9.8 25% Months of Imports w 8.6 8.9 17.6% 6 7.3 7.3 20% 6.6 16.6% 15% CO 10% 3 months' 5% India 0 Source: CEIC, KResearch (data as of March 2022) International reserves / External debts (% Ratio) 0% Indonesia Philippines Korea Malaysia Thailand Singapore Indonesia South Korea Malaysia 100% % 120 113.7 100 92.7 -89.0 80 69.7 60 41.8 40 31.7 23.1 20 0 India Indonesia Philippines Korea Malaysia Thailand Singapore Source: CEIC, KResearch (data as of 2021) 1.3% Philippines 13.7% 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 ■Low portion of foreign holdings in Thai government bonds compared with other countries บริการทุกระดับประทับใจ 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 to support the economy amid COVID-19 outbreak Thailand has enough FX reserves to meet all internal and external obligations % BOT Policy Rate 3.00 Fed Funds Rate -Lower Bound Fed Funds Rate -Upper Bound 2.50 2.00 1.50 1.00 0.50 0.00 ■3 months of imports $ Billion $ Billion FX Reserves 300 300 Reserves backing banknotes ■ST external debt ■Net Forward Position 250 250 200 200 69.8 266.4 150 150 $298.8 Billion $212.0 Billion 100 68.0 100 50 50 74.2 32.4 0 Source: BOT, KResearch Last Update: May 5, 2022 0 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 ■Due to high inflationary pressures, the Fed decided to raised its policy rate to 0.75-1.00% in May 2022 ■Monetary easing leads to a massive exodus of capital from emerging markets and worsens exchange rate depreciation. However, Thailand's external stability will likely be maintained ■The Thai banking system excess liquidity fell slightly. The CAR was good (19.62% as of February 2022) and NPL ratio was still manageable (3.12% as of 4Q21), with net profits of Bt168.1bn in 2021 Excess liquid assets in Thai commercial banks slightly rose Million Baht 5,000,000 %LCR 200 191.3 190.2 187.8 183.5 184.7 190 4,000,000 176.9 178.1 180 173.8 3,000,000 170 2,000,000 160 2016 2017 2018 Liquid Assets. 2019 2020 2021 Jan-22 Feb-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 169 170#86Billion Baht Billion Baht K KASIKORNTHAI Other Figures Thai Bond Market Size (Gov't and Private bonds) 16,000 88.8 91.7 100 14,000 12,000 10,000 63.3 64.4 64.8 69.4 69.6 70.2 72.9 74.5 73.6 78.1 78.7 90 53.9 52.4 8,000 6,000 4,000 2,000 0 14,733 % to GDP • Neg 80 70 60 4.0 3.0 14 % 32 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) Foreign Holdings of Thai Bonds ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields 3.73 2.29 2.48 2.69 2.87 2.96 3.02 3.07 1.92 2.0 1.47 30 1.0 0.55 0.64 10 0.0 0 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 15Y Dec 18 Dec 19 -Dec 20 Dec 21-May 5, 2022 Current Account and FX Reserve USD246 bn (2021) 300,000 250,000 % of Total Bond Outstanding 200,000 150,000 100,000 -10,000 -20,000 50,000 USD-9.5bn (11M21) 0 50,000 40,000 8% 8% 1,200 1,000 800 8% 8% 9% 7% 7% 7% 8% 6% 4% 6% 6% 6% 600 400 1% 200 0 2% 1% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Foreign Holding Outstanding (LHS) % of Thai Bond Market (RHS) ៩៖ នំ៖៖៖៖ សំ៖៖ 30,000 7% $20,000 6% 10,000 K KASIKORNTHAI Other Figures Housing Loans / GDP บริการทุกระดับประทับใจ Million Baht 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 17.7 17.4 18.0 18.3 1,709,897 1,885,139 2,034,137 2,263,552 19.4 21.0 22.0 22.3 22.3 22.6 23.2 2,510,012 2,783,129 3,021,811 3,251,488 3.448.852 3.706,397 3,918,565 4,172,556 4,410,244 Current Account (LHS) FX Reserves (RHS) Million Baht 600,000 500,000 ธนาคารกสิกรไทย 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 2.6 400,000 % to GDP 300,000 26.7 27.3 30 200,000 25 100,000 196,59 0 20 2009 15 10 % to GDP 3.5 2.7 2.9 2.8 3.0 2.5 216,427 228,903 261,553 290,425 318.141 333,493 360,096 394,123 418,747 457,090 449,733 458,181 22 - 0 2.0 1.5 1.0 0.5 0.0 2021 2012 2015 Credit Card Loan Outstanding (LHS) 2018 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 0 2009 2011 2013 2015 2017 LO 5 Million Baht 800,000 0 700,000 2019 2021 600,000 500,000 2.2 400,000 300,000 200,000 100,000 0 Housing Loans for Personal Consumption (LHS) --% Housing Loans to GDP (RHS) 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 1.9 1.7 2.1 2.3 2.4 2.3 2.3 2.3 2.3 213,745 187,491 213,310 257,129 299,139 312,851 318,354 332,996 354,243 % to GDP 5.0 4.4 4.5 3.7 3.4 4.0 Q 3.5 383,303 579,911 580,383 707,715 TTTTT 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Personal Loan Outstanding (LHS) -% Personal Loans to GDP (RHS) 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 172 171 USD Billion#87K KASIKORNTHAI Other Figures Loans to GDP as of 2020 United States Thailand South Korea Japan Malaysia Singapore China ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Banks' Net Loan Growth and NPL Ratio 66.9 % YoY % to Total Loans 93.5 15 5.23 6 99.7 12 3.89 5 101.1 9 2.94 2.99 3.08 3.09 3.14 3.25 3.12 2.69 4 2.44 6 2.31 2.31 3 123.9 3 152.0% of GDP 12.5 15.1 14.0 10.5 4.2 3.4 1.3 4.3 5.2 1.9 6.1 2 5.7 0 1 168.5 -3 T -0.5 2009 0 2011 2013 2015 2017 2019 2021 3 53 73 93 ;3 433 453 473 493 4;3 % YoY Net Loan Growth --% Gross NPL Ratio 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 13 Thai commercial banks from C.B.1.1 Latest % Gross NPL is as of 3Q20 GDP Per Capita Baht % YoY -10 -15 2200RPROD 25 19.9 250,000 11.3 12.8 11.1 15 9.7 10.2 8.7 200,000 4.0 6.7 10 5 5.8 14.3 11.0 9.5 4.8 7.2 8.0 6.0 -1.1 9.4 6.2 9.2 1:3 150,000 -5 -1.6 100,000 -11.3 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Credit Card Loan Growth Spending Growth 2021 50,000 147,364 8.6 3.9 1.8 3.2 5.7 5.4 5.2 % YoY 20 2 10 0 2.9 3.2 -7.7 0 2009 163,956 170,467 185,159 192,327 195,807 202,151 213,586 225,095 236,861 243,705 224,962 I 232,176 2012 GDP Per Capita 2015 2018 % YoY 2021 -10 -20 -30 Note: The credit card statistics number includes foreign bank and non-bank credit cards Source: BOT, NESDC, NSO, CEIC Data, and KResearch บริการทุกระดับประทับใจ K KASIKORNTHAI Other Figures Population and Labor force ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Unemployment Rate 70 Million Person 60 54.0 % of Labor Force 2.00 54.5 55.0 54.8 55.2 55.6 56.0 56.3 56.6 56.8 57.2 1.69 1.64 1.50 50 1.50 1.18 1.04 40 39.4 38.5 30 38.9 20 10 0 0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■Population (Age>= 15 years) 2009 2011 2013 2015 2017 2019 2021 0.99 0.84 0.88 1.05 0.98 1.00 0.68 0.66 0.72 0.50 ■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 8 117 8.9 10.4 7.5 6.4 6 1.3 -1.6 -1.3 4 ------ 20 80% 9.6 8.2 7.9 8.1 7.5 6.6 6.8 6.7 6.4 6.3 15 10 60% 31.7 34.6 35.0 35.1 36.3 35.2 36.2 34.0 32.6 32.3 5 40% 0 -5 2 20% 4.9 5.6 5.8 6.6 6.5 7.0 7.9 7.7 8.6 9.1 9.0 -10 1.4- 1.9 1.6 17.0 16.1 18.2 17.1 16.0 1.7 2.3 2.0 2.3 2.8 16.0 14.0 14.8 13.2 14.8 17.6 16.3 16.1 16.7 15.5 17.6 30 2.8 12.5 12.7 19.8 20.3 0 -15 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FDI Position (LHS) % YoY (RHS) Note: 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ASEAN ■China ■Japan ■ US - 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 ■EU Others Source: BOT, NESDC, NSO, and KResearch บริการทุกระดับประทับใจ 173 174#88K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 175 K KASIKORNTHAI DISCLAIMER: Bank of Sustainability STRIVE TOWARDS NET ZERO SOCIETY 1801 1910 1930 1950 Average Temperature Change in Thailand since 1901-2021 Waming Saripes image by Professor Ed Hawk (University of Reading) bipeshowyourstripes.info/sathaland 1979 1990 2010 2021 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 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 176#89K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK With concern and care from KBank, let's protect ourselves from COVID-19 Wearing hygienic mask Clean your hands with alcohol-based gel Keep away from each other at least 1 meter บริการทุกระดับประทับใจ K KASIKORNTHAI บริการทุกระดับประทับใจ 177