#1K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK Investor Presentation as of 3Q23 (Updated Economic Data) December 2023 For further information, please contact the Investor Relations Unit or visit our website at www.kasikornbank.com บริการทุกระดับประทับใจ K KASIKORNTHAI KASIKORNBANK at a Glance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Established on June 8, 1945 with registered capital of Bt5mn (USD0.14mn) ■Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of September 2023) Assets 1) Loans Deposits CAR ROE (9M23) ROA (9M23) Number of Branches Number of E-Machine (ATM/RCM) Number of K PLUS Users Number of Employees 5) Share Information SET Symbol Share Capital: Authorized Issued and Paid-up Number of Shares Market Capitalization 3Q23 Avg. Share Price: KBANK KBANK-F EPS (9M23) BVPS (9M23) Bt4,266bn (USD116.7bn) Bt2,438bn (USD66.7bn) Bt2,681bn (USD73.3bn) 19.62% 3) 8.63% 4) 1.03% 813 11,001 21.4mn Ranked #3 with 16.09% market share²) Ranked #3 with 15.66% market share Ranked #2 with 16.84% market share²) Bank only 18,711 / Consolidated 31,531 KBANK, KBANK-F Bt30.2bn (USD0.83bn) Bt23.7bn (USD0.65bn) 2.4bn shares Bt298.5bn (USD8.16bn) Bt126.00 (USD3.45) Bt126.00 (USD3.45) Bt13.62 (USD0.37) Bt215.09 (USD5.88) Ranked #3 in Thai banking sector 1 Top 5% SAPS S 86/100 carbon neutral CDP CLOSET ACTION A LIST 2022 CLIMATE ESG100 Environmental Social-Governance MSCI Notes: 1) Loans Loans to customers 2) Assets, loans and deposits market share is based on C.B.1.1 (Monthly statement of assets and liabilities) of 17 Thai commercial banks as of September 2023 3) Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from 1 January 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisted of KBank, K Companies and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd. and other subsidiaries within the permitted scope from the BOT's to be financial conglomerate. 4) ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments 5) Consolidated Number of employees includes employees of KBank, the wholly-owned subsidiaries of KBank and support service providers of KBank. Exchange rate at the end of June 2023 (Mid Rate) was Bt36.56 per USD (Source: Bank of Thailand) บริการทุกระดับประทับใจ 2#2K KASIKORNTHAI Table of Contents ■ Operating Environment ■2023 Financial Targets ■The K-Strategy Financial Performance ■Capital and Dividend ■Summary ■ Appendix K KASIKORNTHAI Appendix Topic บริการทุกระดับประทับใจ Topic ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page 5-6 7-8 9-10 11-18 19-20 21 22 - 171 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page KBank Strategy Business Highlights Risk and Credit Management Financial Performance 23-50 51-58 59-68 69-85 9M23 Highlights 69-72 • Interest Income - net 73 • Non-interest Income and Structure 74 • Net Fee Income and Structure 75 Other Operating Expenses 76 Loan 77-78 • Asset Quality 79-81 Investment in Securities and Funding Structure 82-85 The Wholly-owned Subsidiaries 86-97 Muang Thai Life Assurance (MTL) 98-106 ➤ Other Information 107-121 ■Banking System and Regulations Update ■Government Policy ■Thai Economic Figures ■IR Contact Information and Disclaimer 122-131 132-145 146-169 170-171 บริการทุกระดับประทับใจ 3 4#3K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2024 (as of 12 December 2023) дол% Key GDP Forecasts and Assumptions 1.5 2.6 2.5 -8.0 2021 2022 2023F 3.1 2024F Key Points: ■Thai GDP in 2024 is expected to grow 3.1%, up from 2.5% projected for 2023, mainly driven by a continuous rebound in tourism sector, export rebound, and government spending ■If the digital wallet scheme is implemented, the Thai GDP in 2024 may be accelerating to 3.6% ■However, uncertain global economic outlook may continue to weigh on the Thai economic recovery ■ Average headline inflation for 2024 is expected to decline to 0.8%, given lower pressure from global energy prices ■Thai economic recovery has been uneven and sluggish, having only returned to pre-pandemic levels in 2023 Risk Factors: % YoY 2023F* 2021 2022 2024F* (Dec 23) 2024F* (Dec 23) (Dec 23) Base case DW** GDP 1.5 2.6 2.5 3.1 3.6 Private Consumption 0.6 6.3 7.0 2.8 3.8 Government Consumption 3.7 0.0 -4.9 2.0 2.0 Total Investment 3.1 2.3 1.2 2.3 2.6 - Private investment 3.0 5.1 2.0 3.0 3.3 - Public investment 3.4 -4.9 -1.0 1.5 1.5 Gov't Budget Deficit (% of GDP) -4.8 -3.5 -3.3 -3.7 -3.7 Exports (Customs Basis) 17.4 5.5 -1.3 2.0 2.0 Imports (Customs Basis) 29.5 13.6 -3.3 2.6 2.8 ■Rising geopolitical tensions Current Account (USD bn) -10.6 -16.9 6.8 9.3 8.5 ■Fed funds rate and Thai Baht volatility Headline Inflation 1.2 6.1 1.3 0.8 0.9 Avg Dubai Oil Price 68.8 97.0 82.0 72.5 72.5 No. of Foreign Tourists (Mn) 0.4 11.2 27.6 30.6 30.6 Policy Interest Rate*** 0.50 1.25 2.50 2.50 2.50 ■Household and business balance sheet deterioration ■Impacts of El Niño on farm production ■Global economic slowdown Notes: MPC's policy rate is at 2.50% (as of November 29, 2023) Source: KResearch (as of December 12, 2023) **DW Including Digital Wallet Programe *** KBank Capital Markets Research (as of December 13, 2023) บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2024 (as of 18 December 2023) ■Global Economy ■Government Stimulus Plan ■Inflation ■Exports and Tourism ■Fed Policy Normalization Baht Outlook ■Global economy: Global economy is expected to grow at a slightly slower pace in 2024 amid lagged impact of monetary tightening, and China's sluggish recovery while uncertainty remains with geopolitical issues ■US: After stronger-than-expected growth in 2023, the US economy is likely to slow down due to tighter financial condition but is likely to achieve a 'soft landing' in 2024 ■ Eurozone: Eurozone economy is likely to gradually rebound in 2024 as inflation eases but it is likely to see more impact from financial tightening ■China: China's economy is likely to recover at a weaker pace in 2024, despite several supports from the government, as there is no sign of bottoming out in China's real estate sector, which will continue to pressure household and business spending ■ASEAN economies: ASEAN economies will gradually recover in 2024 in consistent with the global trade, but will continue to face uncertainty from the global economy ■Delay in budget approval for the 2024 fiscal year will impact budget disbursement in 1Q24. However, the government's economic stimulus measures that are set to take effect from 2Q24 onwards are likely to be a key factor supporting domestic consumption ■ Average headline inflation for 2024 may drop to 0.8%, given lower pressure from global energy prices while the government may maintain energy subsidy in 2024 ■Thai exports may rebound to growth in 2024, partly due to low base effect ■Tourist arrivals in 2024 expected to accelerate to 30.6 million ■Fed would cut its interest rates totaling of 75bps starting in 2Q24 as the Fed would wait and ensure that inflation will not surge back up again ■Baht is expected to be at 34.00 per USD at the end of 2024 as the difference between the interest rates of the BOT and the Fed is likely to narrow and Thai economy is likely to continue growing and the current account balance is likely to pose a bigger surplus ■However, Thai baht will be facing some volatility throughout next year due to several risks in many area that will carry into 2024 Source: KResearch (as of December 18, 2023), and KBank Capital Markets Research (as of December 13, 2023) บริการทุกระดับประทับใจ Possible Impacts to Thai Economy ■The Thai economy will remain on its recovery path but will still face uncertainty from the global economy ■Government stimulus measures may help boost domestic consumption and GDP in 2024. If the digital wallet scheme is implemented, the Thai GDP in 2024 may be accelerating to 3.6% from 3.1% in base case ■Domestic consumer spending will continue to expand but at a decelerated pace after remarkable growth in 2023 ■ A rebound in tourism sector will continue to be the main driving factor for Thai economy, despite declining momentum, while an export rebound will help support the Thai economy in 2024 ■■BOT's rate would reach its terminal level and would maintain the current rate at 2.50% throughout 2024 to ensure that inflationary pressures from government stimulus as well as minimum wage hikes are well contained ■Looking forward, the recent Thai current account has surprisingly turned into a surplus with the continuous. recovery of Thai tourism and economy 5 6#4K KASIKORNTHAI 9M23 Financial Performance Consolidated NIM 3Q23 Actual 9M23 Actual Y2023 Targets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Notes (9M23) NIM increased YoY mainly due to higher interest rates, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash. YTD loans decreased from SME, personal loan, home loan, credit 5-7% cards, and from prudent underwriting policy and NPL outflow management, while regional and KLeasing increased. Flat 42.07% 42.65% Low to Mid-40s 3.76% 3.62% 3.3-3.45% Loan Growth Net Fee Income Growth1) -2.29% YTD -2.29% YTD -0.46% QoQ -1.07% YoY -3.96% YoY 1.15% QoQ -5.86% YoY Cost to Income Ratio²) Credit Cost per 209 bps 207 bps year (bps) NPL Ratio (Gross) ³) ROE4) ROA 3.11% 3.11% < 3.25% 8.63% 1.03% N/A N/A Net fee income decreased YoY from brokerage business in line with market conditions, and a drop in transaction service fees. Cost to income decreased YoY from net total income increased, despite higher operating expenses (partly due to employee expenses from cost of living subsidy measures which were one-time expenses). Cost to income will rise seasonally in 4Q23. Focus on cost management and productivity improvement, with new investments for future growth. 175-200 bps 2023 credit cost will remain high, and may slightly exceed the target range, but stay within 210 bps, due to ongoing, proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan. Asset quality is manageable with prudent policy and focus efforts. 8.63% 1.06% Note: 1) Net Fee Income = Fees and Service Income - Fees and Service Expense; 2) Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); 3) 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; 4) ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 7 K KASIKORNTHAI Y2023 Financial Targets NIM Consolidated Loan Growth Y2022 Actual 2023 NDR Targets 3.33% 3.3-3.45% 3.03% 5-7% Net Fee Income Growth* -6.89% Flat Cost to Income Ratio** 43.15% Low to Mid-40s Credit Cost per year (bps) 211 bps 175 - 200 bps NPL Ratio (Gross)*** ROE**** 3.19% < 3.25% ROA ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Notes (Y2023) NIM rising due to higher interest rates and small ticket size lending strategy, despite higher FIDF contribution. NIM may go slightly higher than 9M23 level, in line with interest rate trend. Loans increase from regional expansion strategy and more corporate lending; continued focus on quality using effective data analytics capability. Loan growth may be below target range amid uneven economic recovery. Net fee income may decrease from lower conventional transaction fees due to changing consumer behavior; wealth management business continues to expand. Net fee growth should improve in the last quarter but may not reach target. Moderate revenue growth; projecting higher potential investment expenses for future growth; continuing cost management and productivity improvements. Credit cost peaked in Y2022. Continue proactive asset quality clean up and prudent financial policy, credit cost may slightly exceed the target range, but rising to no more than 210 bps. The credit cost will cover future uncertainties, in line with global economic circumstances and business strategy. 7.38% 0.86% N/A N/A Note: * Net Fee Income Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); * *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 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 Vision Sustainable Development Purpose BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" ESG Beyond Banking & Innovation Strong Brand To Empower Every Customer's Life and Business Growth Strategy PAY: Dominate Digital Payment Reimagine Commercial & Consumer Lending Data Key Capabilities (888) Democratize Penetrate Investment & Insurance Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT 9 10#6K KASIKORNTHAI Classified Loans ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Tightening underwriting policy and ongoing clean-up put asset quality under control. Uncertain economic recovery put the pressure for high and sustainable ECL. Total loan and AIR Total loan allowance (ECL) Bt2,465bn Bt2,452bn Bt128.2bn (5.2% of loan and AIR) Bt129.8bn (5.3% of loan and AIR) |%NPL coverage 147% 155% Stage3 Bt94bn 3.8% Stage3 Bt87bn 3.6% Stage2 Bt179bn 7.3% Stage2 Bt179bn 7.3% Stage1 Bt2,192bn 88.9% Stage3 Bt41.0bn %ECL 43.7% Stage3 Bt41.7bn %ECL 47.7% Stage1 Bt2,186bn 89.1% Stage2 Bt40.6bn %ECL 22.7% Stage2 Bt40.4bn %ECL 22.6% Stage1 Bt46.6bn %ECL 2.1% Stage1 Bt47.7bn %ECL 2.2% Jun 2023 Sep 2023 Jun 2023 บริการทุกระดับประทับใจ K KASIKORNTHAI Balance Sheet Cleanup Updates Loans in Relief program (1) System-wide supportive measures Loans in Comprehensive Debt Restructuring (CDR) %Comprehensive Debt Restructuring Loans were 6.8% as of 3Q23. Targeted measures (Long-term and more sustainability) Sep 2023 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Loan and AIR (Stage 2 & 3) Total loans in stage 2 and stage 3 continued to decline, even including impact from large corporate customer deterioration. 11 19% Loan and AIR Bt313bn (Stage 2 & 3) (12.7%) Bt300bn (12.0%) Bt282bn 428 High Viability Rate Bt275bn 13% • High Collateral (11.1%) (11.2%) Bt270bn Bt273bn (10.9%) (11.1%) Bt266bn (10.9%) High Reserve ■Stage 3 Bt108bn 4.4% 322 Bt110bn 4.4% Bt88bn 3.6% Bt93bn 3.7% 6.9% 7.0% 7.2% Bt89bn 3.6% 6.8% Bt94bn 3.8% Bt87bn 3.6% 174 173 177 166 Stage 2 Bt205bn 8.3% Bt190bn Bt187bn 7.6% 7.5% Bt188bn 7.5% Bt181bn Bt179bn Bt179bn 7.3% 7.3% 7.3% 2020 2021 2022 1Q23 2Q23 3Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 2019 2020 2021 2022 1Q23 2Q23 3Q23 9M23 Total Loan Allowance (bn) ECL to Loan and AIR (%) 125 134 145 134 128 128 130 130 6.2% 6.0% 5.9% 5.3% 5.2% 5.2% 5.3% 5.3% Credit Cost (bps) NPL ratio (%) 174 bps 3.65% 205 bps 3.93% 173 bps 3.76% 211 bps 205 bps 208 bps 209 bps 3.19% 3.04% 3.20% 3.11% NPL Coverage (%) 148.6% 149.2% Write off (bn) 26.4 21.5 NPL Sales (bn) (2) 7.1 6.8 159.1% 27.4 0 154.3% 59.0 156.7% 1.0 147.3% 4.3 154.9% 3.7 207 bps 3.11% 154.9% 9.0 72.0 35.6 15.0 22.7 73.3 Note: 1) Loans in relief programs including debt resolution measures during the early stage of COVID-19; covering broad-based payment holiday and opt-in program; loans in CDR before 3Q23 included one-year scheme 2) NPL sales = legal claim amount, not book value of transferring amount บริการทุกระดับประทับใจ 12 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) Consolidated 2,800 2,421 2,495 2,438 Amount (Bt bn) Dec 22 9M23 9M23 Y2023 Sep 23 Loan Growth Yield Range Loan Growth Target 2,245 (%) 2,400 (%) 2,002 2,000 34% 36% 36% Corporate Corporate Loans 880 878 (0.3%) 2-4% 36% 1,600 35% SME Loans 780 724 ■SME (7.2%) 5-7% 1,200 33% 31% Retail Loans 703 677 34% 33% 30% (3.7%) 5-7% Retail Other Loans 132 160 21.3% 800 Others 400 28% 28% 29% 28% 28% Total Loans 1) 2,495 2,438 (2.3%) 5-7% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 3% 4% 5% 6% 2019 2020 2021 2022 9M23 Note: From time to time, the Bank has adjusted loan definitions based on loan portfolio management; thus, the latest loan base is not comparable with previous reports. 1) Other loans were included loans through the World Business Group. In 9M23, WBG loans were Bt107bn, increased 30.1% YTD and 63.9% YoY 9M23 2023 Outlook Corporate Loans SME Loans Retail Loans Loan Definition ▪ Loan portfolio was stable from short-term loans, but long-term loan slightly dropped due to customers repayment and postpone drawdown. ■ SME loan outstanding decreased due to balance sheet clean up as well as to control and mitigate credit risk from viable customers; more focus on secured credit customers in 2023 ■ However, KBank still provided various product offerings matched to customers' needs with risk-based offerings ■ Unsecured loan outstanding decreased due to seasonal repayment of Credit Card which hiked at year end. However, spending showed improvement in tourism, transportation and restaurant categories ■ Personal loans grew prudently to control and mitigate credit risk ■ Home loans decreased as per market competition. However, new volume showed improving trend in 3Q23 ■ Continued use of data analytics to continuously improve predictive power of credit model and credit process in order to acquire new customer segments with acceptable risk for both SME and Retail Loans Corporate Loans: Loans of KBank and KBank's Subsidiaries in Corporate Segments (annual sales 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 ■ Focus on supporting ESG loans in prospective industries ■ Potential loan growth in some sectors to support business opportunities ■ Grow prudently in line with market situation focusing on secured credit ■ Utilize data analytics to expand credit opportunities in specific industries Support business growth of healthy SME customers and accelerate supports to at-risk SMEs to maximize recovery ■ Provide various product offerings matched to customer needs ■ Grow prudently in line with market situation while maintaining a leading position in the consumer market and being '1st in mind' for our customers and prospects ■ Focus on intelligent lending utilizing data analytics to offer products and promotions aligned with customers' needs ■ Focus on good credit quality customers with acceptable risk and proactively monitor to manage loan portfolio quality ■ Focus on generating additional revenue from existing credit customers บริการทุกระดับประทับใจ Other Loans: Composed of loans through the World Business Group, insurance business (MTL), 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 Net Interest Margin September 2023 (Consolidated) NIM ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Yield on Earnings Assets and Cost of Fund (%) 5 (%) 8 4 3.62 5.85 Yield on Loans 3.31 3.27 3.21 3.33 6 5.21 4.82 4.71 4.97 3 4.19 3.83 4 3.64 3.79 4.46 Yield on Earnings Assets 2 1 0 2019 2020** 2021 2022 9M23 2 1.23 0.78 1.13 0.59 0.62 Cost of Fund 0 1.14 0.95 Cost of Deposits* 0.71 0.54 0.53 ** 2019 2020 2021 2022 9M23 ■NIM stood at 3.62% in 9M23, increased YoY, mainly due to higher interest rates, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash. NIM (%) Yield on Earnings Assets (%) Yield on Loans (%) Cost of Fund (%) Cost of Deposits (%), incl DPA 2019 2020 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 3.31 3.27 3.21 3.33 3.26 3.62 3.46 3.63 3.76 4.19 3.83 3.64 3.79 3.70 4.46 4.21 4.47 4.67 5.21 4.82 4.71 4.97 4.85 5.85 5.49 5.91 6.19 1.23 0.78 0.59 0.62 0.59 1.13 1.01 1.14 1.24 1.14 0.71 0.54 0.53 0.52 0.95 0.87 0.94 1.04 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 14#8K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Composition of Growth: Net Fees and Non-interest Income September 2023 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio (Bt bn) 50% 163.35 173.26 I 1 200 160.49 154.89 (+3%) (-3%) (+5%) (+6%) 141.76 40% 36% 150 36% 27% 23% (+14% YoY) 30% I 27% 30% 23% 30% 21% 22% 23% 123% 23% 19% 17% 100 20% 50 64% 70% 73% 77% 77% 10% 0% 0 2019 2019 9M23 2020* 2021 2022 ■Net interest income Non-interest income Non-interest Income Other operating income 2020* 2021 2022 9M23 Non-interest income ratio Net Fee income ratio Net Fee Income 23.63 (-6% YoY) (Bt bn) 70 57.80 60 (+2%) ■Fee and Service Income - net 45.87 43.96 (-21%) 40.26 (Bt bn) 36.74 50 (-4%) Net earned premium - net. 33.00 35.32 32.88 3% (-8%) 32.16 40 5% (-4%) (-10%) 40 64% (+19% YoY) Dividend Income (+7%) (-7%) 5% 30 30 72% 80% 82% 1 73% Share of profit/loss from investments on equity method 20 20 01% 5% Gain/Loss on investments 10 15% 10 5% 9% 8% 9% 14% 18% 25% 0 0 -0.3% 0.4% 2% 0.2% Gain on financial instrument measured at FVTPL 2019 2020* 2021 2022 9M23 2019 9M23-12% (Gain on Trading and FX transactions-Old) 9M23 non-interest income accounted for 23% of total net operating income and net fee income accounted for 17%. 9M23 non-interest income increased 19% YoY, mainly due to the increase in mark to market financial instruments measured at fair value through profit or loss according to market conditions and revenue from trading and foreign exchange transactions, while net premium earned - net decreased YoY due to higher underwriting expenses increased, although net premiums earned still had growth. 9M23 net fee income decreased -6% YoY mainly from brokerage business in line with market conditions, and a drop in transaction service fees. 3% 0.3% 13% -0.3% -1% 2020-%2021-8%2022 Note: Non-interest Income Ratio = Non-interest Income/Total Operating Income - net - 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 K KASIKORNTHAI Cost to Income Ratio September 2023 (Consolidated) Cost to Income Ratio ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Cost to Average Assets Ratio I (%) (%) 50 45.32 45.19 43.49 43.15 6 I 42.65 40 4 30 2.26 2.01 1.83 1.79 1.89 20 2 10 0 0 2019 2020 2021 2022 9M23 2019 2020 2021 2022 9M23 9M23 cost to income ratio was 42.65%, decreased YoY from net total income increased, despite higher operating expenses (partly due to employee expenses from cost of living subsidy measures which were one-time expenses). Cost to income will rise seasonally in 4Q23. Focus on cost management and productivity improvement, with new investments for future growth. Cost to Income Ratio (%) Cost to Average Assets Ratio (%) 2019 2020 2021 45.32 45.19 43.49 2022 43.15 9M22 43.37 9M23 42.65 1Q23 2Q23 3Q23 42.50 43.37 42.07 2.26 2.01 1.83 1.79 1.72 1.89 1.87 1.96 1.86 Note: *The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 15 16#9K KASIKORNTHAI Asset Quality and Expected Credit Loss (Provision) September 2023 (Consolidated) Expected credit loss (Provision) (Bt bn) During 1997 Asian Crisis* Coverage Ratio During 1997 Asian Crisis* (%) 160.6 159.1 148.5 149.2 141.4 127.1 134.5 130.0 111.0 154.3 148.6 131.8 130.9 54 50.6 51.9 150 49 44 44.1 43.5 41.8 40.3 39 138.3 34 33.8 32.5 34.0 100 29 26.4 24 19 16.8 48.8 14 14.2 6.7 7.3 8.4 11.7 50 34.7 25.430.034.2 2.3 0.7 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 0 1996 1997 1998 1999 2000 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* I ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ Asset quality is manageable with prudent policy and focus efforts. 154.9 NPL ratio in 9M23 was at 3.11%, with coverage ratio of 154.9%. 2023 credit cost will remain high, and may slightly exceed the target range, but stay within 210 bps, due to ongoing, proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 40 (%) 40 888 42.00 NPL Ratio and Credit Cost (bps) 900 INPL ratio Credit cost 700 500 168 204 239 175 174 205 173 211 207 300 96 85 66 2.91 2.45 2.16 2.11 2.24 2.70 3.32 3.30 3.34 3.65 3.93 3.76 3.19 3.11 NPL Ratio by Business 100 Corporate Business 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2021 2022 9M23 -100 SME Business Retail Business*** 2017 2018 2019 2020 2021 2022 9M23 <2% <2% <2% <2% <2% <2% <2% -5% -5% -6% <7% <7% <7% <7% -4% -4% -4% <5% <5% <5% <5% 30 31.70 723 23.50 287 20 44 15.90 66 64 10 5.10 NPL was peak at14 42.3% in 1Q99 0 1996 1997 1998 1999 2000 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 September 2023 (Consolidated) ROA (%) ROE (%) บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ROA (%) (%) ROE** 2.5 24 I 20 2.0 16 1.5 1.20 0.98 1.03 12 9.90 0.85 0.86 8.44 8.63 1.0 7.10 7.38 8 0.5 4 0.0 0 2019 2020* 2021 2022 9M23 2019 2020 2021 2022 9M23 2019 2020 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 1.20 0.85 0.98 0.86 1.04 1.03 1.01 1.03 1.06 9.90 7.10 8.44 7.38 8.97 8.63 8.43 8.82 8.63 Note: * The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). ** ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments บริการทุกระดับประทับใจ 17 18#10K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Capital (Reported Number: Excluding Net Profit of Each Period) September 2023 (Consolidated) Bank only Basel III KASIKORNBANK FINANCIAL CONGLOMERATE* Basel III (%) 18.52 17.74 17.83 18.02 19.02 (%) 19.62 18.0 2.07 21.0 18.80 18.77 19.62 18.81 3.58 15.0 2.80 2.41 2.07 0.68-14.94 1.10 15.42 1.03 15.96 1.05 16.95 18.0 3.43 15.0 26-16.13--16.49-07-16 84-08-17.65 1.97 12.0 12.0 9.0 14.94 14.26 14.32 14.93 15.90 9.0 16.19 6.0 15.48 15.46 15.86 $16.67 6.0 3.0 3.0 0.0 0.0 2019 CET1 2020' AT1 2021 Tier1 2022 9M23 2019 Tier2 2020** 2021 CET1 AT1 2022 Tier1 ■Tier2 9M23 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. 2019 2020 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 Bank only CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period 18.52 17.74 17.83 18.02 18.22 19.02 18.13 18.18 19.02 14.94 14.94 15.42 15.96 16.14 16.95 16.06 16.12 16.95 KASIKORNBANK FINANCIAL CONGLOMERATE* CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period Note: 19.62 16.19 18.80 18.77 16.13 16.49 18.81 16.84 19.19 17.21 19.62 17.65 18.90 19.01 19.62 16.92 17.04 17.65 * 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 22.12 22.3222.51 (Bt) 5.00 5.0 4.00 4.00 4.00 4.00 4.00 4.00 50 42.49 3.50 4.0 3.25 3.00 40 32.14 3.0 2.50 2.50 2.50 27.00 30 2.0 20 1.0 0.50 10 0.0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 ■Interim Dividend 32.80 34.43* 27.83 29.40 26.96 28.75 23.73 23.91 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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. 2010 2011 Dividend Per Share (Bt) 2.50 2.50 Dividend Payout Ratio (% 32.14 27.00 2012 2013 3.00 3.50 22.12 2014 4.00 4.00 2015 2016 2017 4.00 4.00 4.00 2018 2019 2020 5.00 2021 2022 1H23 2.50 3.25 4.00 0.50 22.32 22.51 27.83 26.96 32.80 29.40 34.43 23.73 23.91 28.75 n.a. Note: * The Board of Directors' Meeting No. 1/2020 held on 30 January 2020 has approved the share repurchase project for financial management purposes of KASIKORNBANK, not exceeding totaling 23,932,600 shares, equal to 1% of the total paid-up capital of the Bank and the maximum not exceeding Bt4,600mn, which was conducted through the Stock Exchange of Thailand during 14-27 February 2020, and the Bank had the resale period during 31 August - 16 September 2020. By the end, the Bank was unable to resell as planned. To comply with laws and regulations, the Board of Directors' Meeting No. 11/2020, held on 18 September 2020, resolved to approve the decrease in paid-up capital of the Bank by writing off the unsold amount of the repurchasing shares in full. The Bank of Thailand has also approved the decrease in paid-up capital accordingly. - In 2020-2021, the BOT suspended the banks' interim dividend payment of Y2020 and allowed to pay dividend for Y2020 and Y2021 not exceed 50% of net profit for the previous year. - On June 2022, the BOT announced to remove the dividend payout ratio limit. - Dividend payout will be calculated based on dividend divided by net profit attributable to shareholders net of dividend on other equity instrument including additional Tier 1 instrument. บริการทุกระดับประทับใจ 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 with prudent underwriting policy and NPL outflow management in line with economic conditions although expand to regional market; appropriate liquidity maintained; proactively asset quality management with closely monitored and constantly reviewed; prudent loan loss reserves; manageable cost to income ratio; appropriate ROE maintained ■ Adequate Capital: Capital adequacy remains sufficient to support new business growth; adequate Tier 1 ratio as required under Basel III and new regulatory requirements amid uncertainties of global economy. ■Sustainable Development: conducts business with the principles of a Bank of Sustainability, and appropriate risk management and good corporate governance principles; striving to balance economic, social, and environmental dimensions to achieve goals and create sustainable long-term returns K KASIKORNTHAI บริการทุกระดับประทับใจ Appendix ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 21 24 บริการทุกระดับประทับใจ 22 222#12K KASIKORNTHAI KBank: Strategy บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Success is driven by continuous growth in number of customers and K PLUS users; highest Net Promoter Score among banks in Thailand Number of Customers* (mn) K+ K PLUS Users and Transactions** (mn) 10 225050 (+6.5%) 22.7 21.3 19.5 17.7 16.0 16.5 15 2018 2019 2020 2021 2022 9M23 * Customers in Retail Business account for 92%, SME Business 8%, and Corporate Business less than 1% of customer portfolio 100 15 225050 37,925 40,000 31,750 35,000 30,000 20,710 21,157 25,000 14,516 20,000 8,477 10 20.0 5,188 15,000 17.1 14.4 12.1 10,000 10.0 19.3 21.4 5,000 0 2018 2019 2020 2021 Total Users 2022 ■ 9M22 --Number of Transactions (RHS) 9M23 ** Active users defined as minimum of 1 Login per month; 73% active users as of 9M23 Net Promoter Score (NPS)*** (#1 among Banks in Thailand) 50 35 0 2020 63 2021 83 2022 *** NPS Study 2022 surveyed by The Nielsen Company during September to November 2022, measuring the willingness of customers to recommend a company's products or services to others บริการทุกระดับประทับใจ 23 24 24#13K KASIKORNTHAI The K-Strategy ■ K-Strategy is reimagined to drive growth and empower customer Vision Sustainable Development Purpose BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 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" ESG Beyond Banking & Innovation Strong Brand To Empower Every Customer's Life and Business Growth Strategy PAY: Dominate Digital Payment Reimagine Commercial & Consumer Lending Data Key Capabilities K 888 Democratize Penetrate Investment & Insurance Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 25 25 KASIKORNTHAI KBank: Company Structure by Investment Purpose Key Subsidiaries Credit Wealth KLeasing KFactory & Equipment KSecurities KAsset MTL* Payment EE Digital Asset & Beyond Banking KX (Venture Builder and Venture Capital Fund) KUBIX (ICO Portal) UNITA CAPITAL (Investment in Digital Asset Business) ORBIX TRADE (Digital Asset Exchange) ORBIX CUSTODIAN*** (Digital Asset Custodian) ORBIX INVEST*** (Digital Asset Fund Management) ORBIX TECHNOLOGY & INNOVATION (Blockchain Infrastructure Development) Regional Business KASIKORNTHAI BANK (Lao PDR) KASIKORNBANK (CHINA) KVF (KASIKORN VISION FINANCIAL) Bank Maspion (84.55%) KVISION KTech (China) KBTG Vietnam KBAO (JV) TD TAWANDANG (Investment) (Financial Services) JK AMC (JV) JAM (Investment) (Asset Management Business) NGERN HAI JAI (Investment) CAR HERO** (Auto Loan) KASIKORN INVESTURE (KIV) JV/Investment (Partner Network & IT Capability) KLINE (JV) & KLINE Insurance Broker (Loan, Insurance brokerage and channel for e-payment Business) T2P Holding** (JV) (Lending & Financial Transaction Solutions). Note: *Indirect subsidiary - MTL is a subsidiary of Muang Thai Group Holding **In the restructuring process *** In a process of requesting for Business License KGP** (Online Payment Solutions) KAPTURE ONE (JV) BUZZEBEES (Investment) (CRM Solution Platform) Grab Holdings (Investment) (On Demand Service) บริการทุกระดับประทับใจ 26#14• • . K KASIKORNTHAI Progress of Growth Strategy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK PAY Dominate Digital Payment Reimagine Commercial & Consumer Lending Increase customer's engagement and obtain fund flow Make payment accessible anytime, anywhere Increase digital market share and K PLUS users to 23.9mn in 2023 88 Democratize Investment & Insurance Objective & Aspiration Expand consumer credit and SME support with better asset quality, offering inclusive lending services at reasonable pricing for all . Increase fee and non-interest income Grow wealth AUM by 20% (mutual fund AUM at 38%) within three years Grow wealth customer base by 1 million customers within three years . Penetrate Regional Market Focus China, Indonesia and Vietnam 2023 4% of Net Total Income (NTI) 1.3mn K PLUS users in Vietnam 2027 Indonesia: Top 20 banks by loan size & the largest bank in East Java Vietnam: Top 20 banks by asset size K PLUS 21.4mn with 73% active rate K PLUS Users 37.9bn Total Transactions 7.0bn, valued Bt18.1trn Financial Transactions -2.29% YTD (-1.07% YoY) Loan Growth decreased from SME, personal loan, home loan, credit cards, and NPL outflow management 9M23 Performance 17.4bn Loan Outstanding from LINE BK (JV-lending with LINE)* Mutual Fund Bt49bn (5.7% YTD) AUM Growth 91K (12.2% YTD) New Mutual Fund Customers >90% from K PLUS Bancassurance #2 Total Premium 16.0% market share #2 New Business Premium 16.3% market share Strengthen Harmonized Sales and Service Experience 2.5% of Net Total Income in 2022 #1 >800k The biggest Thai K PLUS Users bank in Shenzhen in Vietnam Launched KBTG Vietnam Launched QRIS in Indonesia Objective & Aspiration Strengthen digital-led sales and service through KBank and partner platforms Optimize physical service and human touch Enhance basic infrastructure to harmonized physical and digital customer experience Note: *Not consolidated in KBank Consolidated Financial Statement #1 9M23 Performance #1 813 11,001 Mobile Banking NPS 2022 among Branches E-Machines (K PLUS Users) Thai banks บริการทุกระดับประทับใจ QRIS = Quick Response Code Indonesia Standard NPS Net Promoter Score > 210,000 Banking agents including touchpoints K KASIKORNTHAI Growth Strategy: Dominate Digital Payment ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK To increase digital market share and active K PLUS users PAY: To make payment accessible anytime, anywhere for everyone with secure, convenient, and good customer experience Strategy Key Achievements in 9M23 Consumer Payment Empower moment to pay anytime anywhere borderless experience with variety source of fund across channels Commercial Payment Enhance business opportunity and trustworthiness thru reliable payment solution and universal source of fund acceptance capability which fits domestic and overseas ecosystem • Campaign to boost up New Gen spending K PLUS ⚫ K PLUS user continuously grew 13% YoY to 21.4 million users อป าง นก ง่ายๆ ไม่ต้องใช้ Use K Point K+market • Continuously increase engagement and stickiness in customer everyday spending activities Merchant Solution for High Growth Segment Capturing small merchants by launching Health and Beauty package • Promotion and Campaign to cross sell KSHOP ได้ทุกธนา Regional Payment Enrich CLMV customers' cross border payment experience with simple and cost-efficient solution by leveraging KBank local channels Trustworthy Business Payment Solution • Capturing enterprises e-payment by launching PromptBiz solution Capturing new business volume with bill payment thru K Corp API 111 KO โอนจ่ายง่าย ได้หลายบัญชี mild funanida API IBIZ Apation Programing interface บริการทุกระดับประทับใจ 27 28#15K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Reimagine Commercial & Consumer Lending ■To increase consumer credit customer and support SME business with better asset quality To offer lending services with reasonable pricing to customers to include everyone in society Strategy Penetrate Consumer Credit Expand our credit portfolio through secured loan to minimize risk and selectively acquire unsecured-loan customer focusing on fraud detection and credit monitoring. Up- and cross-sell to capture more revenues from potential existing customers and promptly manage at-risk customers. Support SME Business Promote business growth and ensure the long-term success of our SME customers by fostering the development of "healthy" SME customers and expediting assistance for those in a vulnerable state to maximize their recovery. Leverage CBS relationship Remain competitive by "explore-and-seize" new business opportunities and supporting the transition into a low-carbon business model. Note: CBS Corporate Business Segment Key Achievements in 9M23 New-to-KBank Credit Customers • • 309K newly acquired credit customers Bt52bn new booking amount in 1H23 (51% of total new booking) from New-to-KBank credit customers Self-apply channel on K PLUS for unsecured credit • 1.45 millions applications/month including both commercial and consumer products Bt110bn new booking amount from existing customers Bt13bn new booking for "Green" Bt1bn new booking with partners บริการทุกระดับประทับใจ 29 29 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Democratize Investment & Insurance (848) To create long-term sustainable wealth empowerment to our customers throughout their wealth cycle Aspiration to grow wealth AUM and to acquire new investment and insurance customers Strategy Key Achievements in 9M23 5.7% YTD Mutual Fund AUM Growth (Bt49bn). Higher than 2.8% industry growth. Main driver is Term Fund sales volume beneficial from attractive government bond yield. Comprehensive Product Offerings 。 IPO private equity and term fund to capture market opportunity. 。 Core-Satellite has rolled out to customers. o Launched Varieties of Affordable Insurance matching needs of each customer segment Sale & Service Model Enhancement with Digital Technology Enablement 。 Strengthening RM capability with wealth specialist. 。 Developing digital wealth app for integrated product suites with advisory contents and holistic portfolio. K-Wealth Brand Strengthening o Top of mind in Wealth Management. 。 Market alert advisory content to customers. o Gain/Loss alert recommendation. . • product to enhance returns while coping with the volatile market 118% YTD AUM Growth of Multi Asset/Balanced Fund - our core Launched Bancassurance - Legacy 99/1, 99/5, 99/10 for legacy planning to address High-Net-Worth & Affluent customer needs Launched Bancassurance - Critical illness online for Middle Income customer addressing their needs - to can get cash back when there is no claim More than 90% of New Mutual Fund customers from K PLUS ⚫ 37% YoY Growth of Mutual Fund Digital Sale Volume (Bt17bn), mainly from low-risk products Regularly engage customer digitally through weekly K-Wealth Outlook view, K-Wealth Flash Update, and K-Wealth Investment Tips C บริการทุกระดับประทับใจ 30 30#16K KASIKORNTHAI Growth Strategy: Penetrate Regional Market ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■To achieve rapid regional digital expansion in AEC+3 using 3 strategic plays to build growth momentum and accelerate customer base development and financial returns A B C China Strategy AEC Aggressive Play: Aggressively grow corporate lending Serving Local Large Corporates, Thai Directed Investors, and AEC+3 Investors Local Large Corporates Thai Direct Investment (TDI) AEC+3 Mass Acquisition Play: Acquire more customers Acquiring local SME and individual customers with partner collaborations Business Retail Acquiring local SME and individual customers via transactional banking channels and partners Business Retail Retail online lending via a self-owned platform under a self-owned platform under 'Better ME' concept K-Cyber Banking EDC Ecosystem Partners ATM/ Agent Supply chain financing via 'Better SME' concept K+ Disruptive Play: Grow digital lending with more local partners Capturing credit needs of individual customers with high-yield credit via E2E online credit tech BaaS Digital Lending Ecosystar Key Achievements in 9M23 We have successfully established KBank's presence in every country across the region, providing international-standard financial solutions catering to diverse customer segments ⚫ KBank China has successfully introduced IT foundation systems for its online business operations. • KBank Vietnam – Ho Chi Minh City branch has launched a new product designed for cross-selling within our fast-growing customer base. In addition, the number of K PLUS customers has significantly increased, surpassing 800,000 and is expected to reach 1.3 million by end-2023. KBank Indonesia via PT Bank Maspion has onboarded 3,000+ merchants in the QRIS initiative, demonstrating its extensive adoption. Note: EDC Electronic Data Capture Machine E2E = Enterprise to Enterprise QRIS Quick Response Code Indonesia Standard BaaS Banking as a Service บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Penetrate Regional Market: Asset-Light Regional Expansion into AEC+3 ■Growth in regional markets: With a strategic focus on the AEC+3 market, KBank is committed to implementing an integrated regional operating model encompassing physical presence, digital platforms, and regional partnerships. Physical Footprint 31 Note: South Korea China Lao PDR. Myanmar Japan Cambodia Vietnam Indonesia - Two subsidiary banks: KASIKORNTHAI BANK SOLE Limited (Lao PDR) with two branches in Ponesinuan and Lane Xang, KASIKORNBANK (CHINA) with four branches in Shenzhen, Chengdu, Shanghai, Beijing and one sub-branch in Long Gang Four international branches: Cayman Islands, Hong Kong, Phnom Penh and Ho Chi Minh City Six representative offices: Beijing, Kunming, Tokyo, Yangon, Hanoi and Jakarta - One strategic partner: Maspion Bank in Indonesia; KASIKORNBANK Group has become a majority shareholder of Maspion Bank in Indonesia by holding a share of 84.55% - Global partners with 80 banks in 14 countries: 50 Japanese partner banks; 10 Chinese partner banks; 1 Hong Kong bank; 3 Korean partner banks; 12 ASEAN partner banks (in Vietnam, Indonesia, Lao PDR, Cambodia, Philippines, Brunei, Malaysia and Singapore); 3 European regional banks (in Germany and Italy) and 1 Indian Bank บริการทุกระดับประทับใจ Lao PDR. Cambodia Myanmar Vietnam Indonesia Japan China Digital Platform X-Border Multi-Currency Settlement X-Border THB Direct Settlement X-Border Retail Payment Partnership AEC VietinBank: BIDV⭑ ECEL LBB Bank BANK MASPION mandiri BCA Maybank BDO Hana Bank + * 靜岡銀行 HICH BANK S 中国民生银行 CHUGOKU BANK 百十四旅行 ...and others 型 △ 愛知銀行 32 32#17K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Strengthen Harmonized Sales and Service Experience ■Reshape channel mix and sales model according to evolving customer behavior, to deliver better experience and productivity Strategy Strengthen Digital-Led Sales and Service By enhancing KBank Platforms to fit each customer's needs, being where customers are through our connected platforms and offer K PLUS as the center of customer's identity and interaction Optimize Physical Service and Human Touch To provide suitable service level for each customer's segment and each touchpoint rather than One-Size Fit All and serve proactively through digital capabilities Enhance basic infrastructure to Harmonized Physical and Digital Customer Experience By implementing "Service Culture", "Feedback Loop" and "Knowledge Management" throughout the organization, enhancing "Risk and Fraud Management" and integrating "Customer Profile" though all channels Note: RP Relying Party KGP = KASIKORN Global Payment NPS CDM Net Promoter Score Cash Deposit Machines Key Achievements in 9M23 #1 mobile banking in Thailand: 21.4 million total K PLUS users with 73% active rate Partners Partners in selected ecosystem (University, Healthcare, Travel, E-commerce & Lifestyle platforms, E-wallet & Payment, and Joint Venture - Lending, Insurance Brokerage, Debt collection and Asset Management, and CRM Solution Platform) BaaS KBank open API (QR payment, bill payment, slip verification, inward remittance, facial recognition, RP proxy, information sharing service via K PLUS, pay with K PLUS, KGP merchant payment platform and Fund Transfer) #1 NPS 2022 among banks in Thailand 813 branches and 11,001 ATMs and CDMs nationwide Over 210,000 banking agent touchpoints บริการทุกระดับประทับใจ 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 Partnership SME Corporate Customers Retail 回 eWallet and Payment xplore YOUTRIP rabbit LINE MAN Wongm LINE PR 支支付宝 University and Healthcare Chula RUO wsu E-Commerce & Lifestyle Platform/ Co-Lending through Partners' Platform R NOWACCOUNT P PRIMO Laz The Shopee Ооквее Alchemy ALIPAY WC Joint Venture LINE for Co-Lending through LINE Platform jmt ๐ วัน for Debt Collection and Asset Management Business for Co-Lending through Carabao Conglomerate channels BUZZEDEES for End-to-End Loyalty management system from point exchange to CRM platform. Venture Capital* Grab Nitta aspire digio NIUM HORGANICE THINKER FINT MLINE MAN wong nai algbra TEP FORWARD Seedoor cryptomind DECENTRALIZED CARRO Rob-wealth Sendo favstay pawoon E Kiot Viet Rate Seller OnePay C 00 ALODOKTER zenius Jo Health Selly e klook 33 33 Note: * Beacon Venture Capital, a wholly-owned venture capital fund of KBank, invests in companies, via: Direct investment: investments in early to growth-stage technology startups with FinTech roots including but not limited to consumer internet and enterprise technology, aiming to leverage new technology from startups to support KBank's businesses and ESG aspirations. However, the logos above only show a portion of our investment. Indirect investment: investments through VC Funds to enable KBank to leapfrog into the world arena and stay abreast of innovative technologies and business models in other regions, e.g. partnered as an LP with VC funds managed by Integra Partners, Vertex Ventures, NYCA, Jerusalem Venture Partners, Pantera Capital, Wavemaker Impact, Quona Capital, Siam Capital, China Renaissance, Openspace Ventures, Do Ventures, and StormBreaker. Alchemy coinvestment with Pantera บริการทุกระดับประทับใจ 34#18K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Harmonized Channels: Domestic Channels and No. of Transactions Branch E-Machine (ATM/CDM**) (-70) (+42) (+48) I (+47*) (-21) (-15) (-11) (-5*) 886 860 10,973 10,981 10,911 10,953 11,001 11,000 839 824 813 819 2019 2020 2021 2022 9M23 2023T 2019 2020 2021 2022 9M23 2023T Mobile Banking Users (mn) ** Cash Deposit Machine Number of Transactions** *** K+ 2.7bn 3.8bn 5.4bn 7.5bn 7.1bn 4% 2% 1% 1% 1% Branch (+3.9*) (+2.9) (+1.4) 28% 20% 13% 10% 8% E-Machine (+2.7) Mobile Banking 23.9 20.0 21.4 17.1 68% 78% 86% 89% 91% 14.4 12.1 2019 2020 2021 2022 9M23 2023T * Compared to Year-ended K KASIKORNTHAI Domestic Channels New KBank Branch (Hybrid Branch) KBank 2019 2020 2021 2022 9M23 *** Transaction includes only cash deposit, cash withdrawal, payment and transfer บริการทุกระดับประทับใจ Community Branch (K Park) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK THE WISDOM Lounge This new branch design increases the flexibility and efficiency. of branch banking services, assisting staff to smoothly facilitate customers' adoption of self-service machines and digital channels (K PLUS). E-Machine ATTOT ATM ATM As a community bank accommodating the daily needs of local people, K Park provides financial zones for transactions and co-working spaces, with a Kids Zone and other services from KBank partners all in the same place. KBank KBank Service ฝาก-ถอน-จ่ายบิล SERVICE ยืนยันตัวตน เคแบงก์เชอร์วิส ใกล้ที่ไหน ไปที่นั่น An exclusive center providing a full range of services and facilities to High Net Worth Individuals and Affluent segments. KLOUD by KBank CHECK D Invisalign Our enhanced self-service cash machines are a convenient touch point to authenticate all digital onboarding such as e-Savings and e-Wallet account. K KBank Service - Banking Agents are business partners with extensive network coverage and extended service hours providing most banking services needed by retail customers. KBank ไม่ว่าสถานการณ์ไหน ปิด KK PLus ก่อน K+ answaa Digital Banking The 'KLOUD by KBank,' our new sustainable building in the center of Siam Square, creatively connects the young and vibrant Siam Square community while supporting ESG. Digital Banking includes: ⚫ K BIZ • LINE BK ⚫ K PLUS . K-Corporate Connect ⚫K PLUS SME ⚫ K SHOP . K-Payment Gateway K-PowerP@y (mPOS) • MAKE Khunthong LINE KBank LIVE บริการทุกระดับประทับใจ 36 36 35#19K KASIKORNTHAI Success Story of KLINE: Line BK Services 9M23 Key Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK B0.00 1.5% Saving Accounts: 7.8mn Special Rate Accounts: 202K Debit Cards: Credit Line Accounts: 3.4mn 589K Line BK Platform Users: 6.1 mn Outstanding Loans: 17.4 bn October 2020 LINE BK Launched October 2020 October 2020 - December 2022* February 2021 December 2021 Line BK Platform User 2mn users Outstanding Loans 5bn Line BK Platform User 3.9mn users Outstanding Loans 14.7bn December 2022 Line BK Platform User 5.3mn users Outstanding Loans 18.1 bn Note: During peak periods, LINE BK saw more than 40,000 loan applications in a single day and 30% of those approved had never received a loan before. บริการทุกระดับประทับใจ K KASIKORNTHAI Data Analytics Strategic Objectives and Initiatives ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K-Data Strategy: Data Insights to Actions to Meaningful Business Impacts Scale up INTELLIGENCE To reach, understand & better provide products/services to wider customer groups CREDIT & Fraud Reach new customer segments • Prevent fraud and bad customers Right approval decision for qualified customers • PAYMENT Acquire and utilize payment data for customer understanding Support business use cases: marketing, credit risk, and fraud prevention INVESTMENT Identify and acquire wealth customers Best experience to customers to manage and grow their wealth at KBank with confidence Capability 1. Scale DATA TALENT 2. Broaden DATA ACQUISITION 3. Uplift DATA FOUNDATION 4. Step up CULTURE CHANGE บริการทุกระดับประทับใจ 38 37 37#20ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Performing Talent and Agile Organization 5 key elements to build customer empowerment organization 5 Data Organization Design for Growth & Productivity ■ Continue and scale purposeful and practical leadership to drive transformation. Purposeful & Practical Leader CUSTOMER ☐ Design competitive total 4 reward to drive business. Performance EMPOWER- MENT 2 -Driven Reward Effective New Way of Work 3 ■ Reskill at scale and integrate E2E value-chain based development. Integrated Development Technology บริการทุกระดับประทับใจ ■ Restructure resources allocation for both growth and productivity with innovative staff fulfillment Aspiration ■ Customer obsession More & meaningful innovation ■ Fast execution with flexibility ■ Excellent collaboration ■ Best place to work, learn and lead ■ Co-create with leaders to embed "FITS" concept into work-life. ■F: Flexible work arrangement ■I: Impacted outcome for customer expectation ■T: Trusted environment between supervisor and employee ■S: Security on work and life 39 K KASIKORNTHAI KASIKORN BUSINESS - TECHNOLOGY GROUP Company Structure กสิกรเทคโนโลยีกรุ๊ปเซเครเทเรียต *** KASIKORN TECHNOLOGY GROUP SECRETARIAT ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK A Bridge between KBank and KASIKORN BUSINESS - TECHNOLOGY GROUP ■ Group's Control Structure Enable Seamless Integration กสิกร แล็บส์ 开型研发 KASIKORN LABS " ■ Technology Research and Innovation Labs Pioneer new possibilities Regional KBTG VIETNAM ▪ KBTG's extended arm and overseas IT hub to support expanding K-Group IT Hub & Innovation กสิกร อินฟรา KASKORN INFRA ■ Control Infrastructure Resources for the Change, the Run, and the Gone Ensure Service Continuity KTECH 开泰科技 ■ Aim to explore new technology and partner for financial services business Explore New Technology กสิกร ซอฟต์ 开费软件 KASIKORN SOFT ■ Software Development to Support Business Requirements and Innovation Generate Business Value Note: KUBIX is a KX's subsidiary; established in March 2021 KXVC is a KX's subsidiary: established in October 2023 Macro Technology is 75% acquired in April 2023 กสิกร เอก 开费爱料息有限公司 KASKORN K ■ Venture Builder and Venture Capital focusing on Web 3.0 New S-Curve Factory MARCO TECHNOLOGY ■ 75% owned subsidiary to support KBTG on IT talents and operation kubiz ICO portal provider offering alternative way of fundraising & investment KXVC ■ Venture Capital focusing on Al, Web3.0, Deep Tech regionally beacon Design User Interface and User Experience for business บริการทุกระดับประทับใจ 40 40#21Note: K KASIKORNTHAI IT: KBTG Strategy and Innovation ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Build and Maintain the Technology that Empower Every Customer's Life and Business Aim to be ONE of the Best Tech Companies in Southeast Asia Strategy Key Achievements in 9M23 Support Running the Bank " IT Project Delivery Excellence Drive and manage IT project portfolio for on-time and +122 New IT Projects Delivered in 9M23 on-budget delivery IT Brilliant Basics 224 Projects currently in development Maintain operational stability with uncompromised security 400+ KBank Applications World Class Tech Talent Fulfil, retain and uplift top tech talent capability towards a goal to be Forbes's World's Best Employers 1st Rank of Cyber Security among Banks in Thailand From BitSight Rating Regional Expansion Support KBank regional expansion and apply innovation "From" and "To" regional Create the Future of Finance Breakthrough Innovation 2 Regional Development Sites (Vietnam, China) 3.3 Million users from Platform Businesses " kubix Raised Bt265mn from Destiny Token Deal Scale up existing innovation product and deliver business value/cost avoidance using advanced tech capabilities The New S-Curve Explore and create new S-Curve product/investment in the area of Decentralized Finance (DeFi), Web 3.0 and metaverse that goes Beyond Banking coral bigtin Continue its business with first campaign with GMM Expanding its coverage to other investments beyond digital assets. KXVC Launched Bt3,500mn flagship fund aiming Al, Web3, and Deep Tech KASIKORN BUSINESS - TECHNOLOGY GROUP established with 5 companies, as a wholly-owned subsidiary of KASIKORNBANK; included in the KASIKORNBANK FINANICIAL CONGLOMERATE, as approved by the BOT in October 2015 บริการทุกระดับประทับใจ K KASIKORNTHAI KBTG: Support Running the Bank Vision: ONE of the Best Tech Companies in Southeast Asia Project Delivery IT System Stability K PLUS Digital Users People 2019 83 < 5 hours 12.1 mn 1,332 2022 144 < 5 hours 20 mn 2,013 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2025 250 (+200%) < 5 hours +++ 1. IT Project Delivery Excellence Project Delivery Scale project delivery through transformation to support the expansion of project demand and complexity Scale Apply global best practices, processes and tools for transforming our IT delivery to overcome IT rapid changes 2. IT Brilliant Basics IT System Stability . Maintain over 400 applications with highest system availability o High system availability for customer at 99.95% (only 5-hour/year allow for critical applications) o High customer impact incident less than 10 times a year for critical applications o No high customer impact of security breach K PLUS Digital Users Ensure the best experience for customer by always optimizing front-end and back-end to support fast growing number of users บริการทุกระดับประทับใจ 3,000 (+125%) Note: % Growth against year 2019 3. World Class Tech Talent People . Increase resource capacity to support the project demand • Reduce the employee retention within industry benchmark . Increase capability for focused role to support sustainable growth 41 42#22K KASIKORNTHAI KBTG: Support Running the Bank ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 4. Regional Digital Expansion: Financial and Non-Financial Services Expansion in AEC+3 KTECH (China) A fintech company wholly owned by KASIKORN VISION CO., LTD. (KVision) registered in Shenzhen, People's Republic of China, with registered capital of Bt1,300mn Primarily involved in the design and creation of IT systems, research of new technologies, and search for new business models conducive to digital banking and economic systems ■ Launched KChina Data Infrastructure, Personal Commercial Loan and Beijing branch opening to support KASIKORNBANK (CHINA) CO., LTD. Passed High Tech Enterprise Certification and passed the renewal of ISO 9001, 20000, 27001. This could support in term of favorable policies and financial support from local government and corporate branding Indonesia Advised and closely observed Core Banking Upgrade, which was prolonged for 20 years, to fulfill regulator's instruction and expedite business expansion readiness Provide guidance to implement new mobile banking application in alignment with retail segment's strategy Sharing and support strategies and active/passive cyber defense implementation with best practices upon necessity to Bank Maspion Vietnam ■ The representative office in Ho Chi Minh City was upgraded to the status of an international branch - the first KBank branch in Vietnam. The Bank has prioritized Mobile Banking, Internet banking, merchant acquiring, digital lending, Home loan and funds transfer services with other financial institutions, both private and public Customers of K PLUS Vietnam, launched in March 2022, are expected to reach 1 Million by end of 2023. ■ KBTG Vietnam (KBTGVN) is expected to launch new digital SME channel in Dec 2023. ■ KBTG Vietnam (KBTGVN) also expanded the office to Hanoi in August. the B บริการทุกระดับประทับใจ VIETNAM KBTGVN Office K KASIKORNTHAI KBTG: Create the Future of Finance Scale-up Innovation Products & Partnerships Financial Innovation AINU MAKE Khunthong Al Products & Partnership เมืองไทย ประกันภัย WERE THE PUPIC Verification Tech Car Al Tech PAYLATER ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Launch New S-Curve Products kubix KX Insurance Lead In house Al Highlights Marketing & Credit Intelligence Process Automation Facial Technology CeFi Be the Digital Asset Platform of Choice Defi Fully operated KX as 'Venture Builder' and established 'KX Venture Capital (KXVC)' as a global Web3 & Deep Tech Venture Investment coral Launch and scale Coral NFT Marketplace to be a top player bigfin Note: CeFi Centralized Finance; DeFi = Decentralized Finance; NFT = Non-fungible Token บริการทุกระดับประทับใจ Launched 'Bigfin' to become top-of- mind investor tool 43 44#23K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Create the Future of Finance - Breakthrough Innovation Scale-up Innovation Products & Partnerships 1.6mn Users KhunThong Social chatbot helping friends settle expenses within a chat for a seamless payment experience поке A 2mn Users MAKE by KBank A mobile banking application designed specifically for a new generation to personalize financial management AINU AINU A business solution for identity verification driven by Al to elevate business operation and achieve regulatory requirement with ease. Solutions offer ID card extract, face recognition, liveliness detection applicable to various industries. CAR AI for Insurance Car Al Tech เมืองไทย ประกันภัย BURING THE HELPSANCE A car inspection Al for assessing and detecting car damages to help business increase operation efficiency and reduce cost and human error. The first use case of Car Al will be applied to Muang Thai Insurance Public Company Limited and will be launched commercially soon. Techtopia: Across the Al-Verse MOTO KBTC TECHTOPIA, TECHTSA A seminar titled, "Techtopia: Across The Al-Verse", to share knowledge about Al in four main areas, namely Al Trend and Outlook (Experience the influence of Al through emerging trends and innovations); Al Transformation (Steps of undertaking organizational transformation in numerous dimensions with Al); Al x Human (Delve into factors that will support coexistence between humans and Al); and Al Ecosystem (Explore future businesses driven by Al and open doors to new opportunities). The speakers included executives and experts in Al from leading platforms and organizations, such as AWS (Amazon Web Services), Google Cloud, Microsoft (Thailand), LINE BK, and Siam Piwat Group. บริการทุกระดับประทับใจ 45 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Create the Future of Finance - The New S-Curve KX coral Launch New S-Curve Products KASIKORN X (KX) Incubate, scale, and spin-off new S-Curve businesses in DeFi • Coral A non-fungible token (NFT) marketplace platform for reinventing fan engagement experience through digital collectible NFT BigFin A digital asset investment analysis platform with features including running balance and transaction history with manual cost basis entry KXVC • KXVC Launched Bt3,500mn flagship fund targeting Al, Web3, and Deep Tech with strong synergy with KBank to create financial innovations in APAC. Kubix Digital Asset (Kubix) A full-fledged platform on blockchain services and digital tokens kubi technology for asset tokenization DESTINY TOKEN ⚫ Destiny Token First Thai digital token for investment under collaboration between GDH and Broadcast Thai Television. 16K tokens sold (Bt265mn fund raised) ⚫ M Token Airdropped utility token that offers privileges to Major Cineplex Group's M Gen and M Pass customers MIT Media Lab Member mit media KBTG became a Consortium Research Lab Member at MIT Media Lab to jointly conduct research on innovative technologies, namely metaverse, blockchain, and decentralized finance (DeFi), as well as in other areas such as sustainability and education บริการทุกระดับประทับใจ 46 46#24K KASIKORNTHAI KBTG Buildings and Awards D Recognition & Awards Asian Technology Excellence Awards In the categories of Al - Financial Technology for Car Al, increase the efficiency for car inspection process and operation Design Excellence Award 2023 (DEmark Award) K PLUS Vietnam, a mobile banking application for Vietnamese users, won the award recognizing outstanding product designs. KBTG Main Building AIBP ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK HR Excellence Award 2023 In 3 categories: Excellence in Employer Branding (Gold), Excellence in Recovery & Rebound Strategy (Gold), and Excellence in Women Empowerment Strategy (Silver) 2023 AIBP ASEAN Enterprise Innovation Award Honoring KBTG transformation program which plays crucial role in increasing software development's productivity and quality K+ Building BELL 05 04 ASRO K-Stadium at KBTG Main Building Innovation Center K+ Building: City-based KBTG office "Hackathon" Hall บริการทุกระดับประทับใจ 47 47 K KASIKORNTHAI Proactive Risk & Compliance Management Value Enabler Partner with business and provide effective integrated risk solutions Key Capabilities ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Value Protector Strengthen and secure our business to be resilient and sustainable • Predictive and integrated . customer segment-based credit analytics Intelligent fraud management in all key business processes • Effective risk management execution for business partners, 3rd parties Enabling customers for ESG Transformation ◉ Credit risk analytics & integrated credit portfolio planning & monitoring Enhanced fraud analytics & incident management ■ Customer data protection • • Prudent risk-based provision and capital management Early error detection through effective quality assurance and fraud management and Ensuring No Surprises • Effective and proactive Operational Risk and compliance management • Customer data governance and management Organization-wide prudent risk culture Agile way of working and delivering integrated risk solutions บริการทุกระดับประทับใจ 48#25K 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 Protect Customer Assets Customer Promise Strategy with KBank Digital frauds protection for customers Reduce loss of customer due to digital frauds & cyber cri Strategic Capabilities 1 Effective Risk Identification 2 Provide secured services Strengthen cyber resilience capabilities Continues enhance prevention, detection, response & recovery capabilities Advanced Threat Prevention 3 Ensure care and timely response for any cyber incidents Uplift Risk Management for third parties and subsidiaries Continues uplift cybersecurity maturity of subsidiaries, and management 3rd party risks Situation Awareness and Threat Detection 4 Effective Incident Response and Recovery 5 Cyber Hygiene Culture บริการทุกระดับประทับใจ K KASIKORNTHAI Improve Value-Based Productivity E2E Product Offering • Digital onboarding and servicing Sale & Service Optimization Enhance Sales Opportunities Strengthen digital-led sales and service Optimize physical service and human touch • ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK New product features and process design (e.g. Virtual Card) Operation & Back Office • Operational Excellence Workforce Management • Organization design for growth: Focus on productivity • Integrated development: Scale and integrate • Effective new way of work: Embed in work-life IT Effectiveness • KBTG Transformation ⚫IT Cost Optimization • Business Value generation and Productivity Enhancement Property & Facility • Efficiently manage demand and supply of property assets (Branch and Non-Branch) • Optimize cost of facility and equipment Other Marketing, Travelling & Communication Note: E2E Enterprise to Enterprise บริการทุกระดับประทับใจ 49 50#26K 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 5 51 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 52#27K KASIKORNTHAI Corporate Business: Key Performance Multi-Corporate Business Large Corporate Business Medium Business Small & Micro Business High Net Worth Individual ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Affluent Middle Income Mass ■ Aim to be trusted partner to enrich customers' businesses with best-in-class financial services and solutions Provide innovative and multi-sourced fund raising Offer total solutions for collection, payment, and settlement Enhance digital solutions and platforms Main Bank Main Bank Status* at 41% in 9M23 Key Performance #1 Corporate Bond Underwriting #1 Mutual Fund Supervisor • With 16% market share in 9M23 • With 39% market share in 9M23 50% 30% 43% 40% 37% 38% 39% 39% 39% 40% 39% 20% 19% 19% 40% 20% 17% 16% 30% 30% 20% (#1) (#1) (#1) (#1) (#1) 20% 10% (#2) (#3) (#1) (#1) (#1) 10% 10% 0% 0% 0% 2021 2022 9M23 2019 2020 2021 2022 9M23 Source: The Thai Bond Market Association (ThaiBMA) 2019 2020 2021 Source: SEC (include PPF, IFF) 2022 9M23 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 Property Fund; IFF = Infrastructure Fund PPF บริการทุกระดับประทับใจ K KASIKORNTHAI SME Business: Key Performance . • . • Multi-Corporate Business Large Corporate Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Medium Business Small & Micro Business High Net Worth Individual Affluent Middle Income Mass Empower SMEs at every business stage Offering credit to businesses, using data analytic capability, via appropriate channels Providing integrated payment solutions by embedding into ecosystems, both local and international Building opportunity for SMEs as the intermediary of holistic banking and beyond banking solutions Supporting customers in the transition to a Net Zero Economy . SME NPS and #1 Main Bank Status Remain No.1 with NPS score at 85* for SME customers • Strengthen No.1 Main Bank** position of SME market in Thailand Note: *Info as of 2022 (SME NPS Study 2022 by NielsenIQ) **Info as of 2022 (Main Banking Study 2022 by IPSOS) Key Performance #1 SME Lending Maintain No.1 position in SME products; especially commercial loans Highest share, 23% of SME credit outstanding as of March 2023 #1 in Market Share by SME loan outstanding 30% 23% 23% 23% 21% 20% (#1) (#1) (#1) (#1) 10% 0% 2020 2021 2022 1Q23 Source: Total SME loan outstanding from BOT Note: Main Bank Status = % of customers in the market who use KBank and its wholly-owned subsidiaries as their main operating bank and/or main savings and investment bank and/or main borrowing bank บริการทุกระดับประทับใจ 54 53 53#28K KASIKORNTHAI Private Banking Group: Key Performance . • • Multi-Corporate Business Large Corporate Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Medium Business Small & Micro Business High Net Worth Individual Affluent Middle Income Mass International comprehensive wealth management services Cooperate with Lombard Odier to raise service and product standards to international levels Provide integrated wealth planning services, advising families on wealth management, continuity, and growth Enhance use of technology to improve client experience Build comprehensive client insights from data-mining 36% #1 Market Share by # of customers With 35.4% market share (12,821 customers) 35% 34% 34% 33% 2019 35% 35% 35% 35% 2020 2021 2022 (#1) 9M23 Key Performance • Growing AUM Bt786bn AUM in 9M23; growth 0.9% YTD in 9M23 AUM Breakdown: Investment 60% and Deposit 40% (Bt bn) 800 750 717 700 788 786 775 779 650 2019 2020 2021 2022 9M23 Source: Private Banking Group (market share by number of customers) ■ Focus Customers (Type of Customer): ➤ Sophisticated customers (over 70% of total customers); Non-Sophisticated customers ■ Product Types and Services: > Collaborate with Lombard Odier to develop innovative products; build capability via staff trainings and regular workshops; offer advisory services with close Chief Investment Officer collaborations; and offer referral offshore investment services ➤ Key product and services: Financial Products and Services: Investment Advisory Non-Financial Products and Services: Family Wealth Planning & Real Estate Others: Financial Event & Privilege บริการทุกระดับประทับใจ K KASIKORNTHAI Retail Business: Key Performance Note: High Net Worth Individual = Individual wealth with KBank and its wholly-owned subsidiaries > Bt50mn ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 55 55 • Multi-Corporate Business Large Corporate Business Medium Business Small & Micro Business High Net Worth Affluent Middle Income Mass Individual Empower Retail customers in everyday life Seamlessly integrating all service channels of KBank through K PLUS Democratizing savings and investments through digital capability and integrated investment platform Liquidity enhancement, along with provision of financial literacy to retail customers in support of their vigorous growth Connecting with partners and providing cross-platform loyalty program K+ #1 Digital Banking ⚫ NPS: Mobile Banking Level by Nielsen 2022 • Recognition Award from national & international institutes #3 Mortgage Loan Outstanding Top 3 among commercial banks with 7.7% market share in 9M23; steady growth and maintain good portfolio quality (% Market Share) Key Performance #1 Debit Card spending •Maintain top position by delivering value and benefits matching customer lifestyles with 51% market share in 1H23 Launched media promoting Journey card and improving customer experience with auto renewal expired card #1 Mutual Fund AUM Highest share, 22.5% in 9M23 Highest share in Money Market & Fixed Income Fund, Term Fund and Foreign Investment Fund #1 Credit Card spending with 20.5% market share in 9M23 #2 Number of Cards ⚫ with 15.4% market share in 9M23 ⚫ Card-accepting merchant services (online & offline platforms): ranked #1, with 34% market share by sales volume in 1H23 #2 Bancassurance Premium • MTL ranked #2 in total, new business and renewal premiums with 9M23 market share of 16.0%, 16.3%, and 15.9% respectively. Bancassurance Mortgage Loan (% Market Share) Mutual Fund (% Market Share) 10% 9.2% 9.4% 8.3% 8.1% 7.7% 30% 20% 20.1% 22.1% 21.8% 21.8% 22.5% 30% 24.8% 23.0% 20.1% 19.91.8% 19.3% 20% 5% 16.6% 18.4% 17.1% 18.3% 10% 10% 0% 0% 0% 2019 2020 2021 2022 9M23 2019 2020 2021 2022 9M23 บริการทุกระดับประทับใจ 16.3%.0% 5.9% 16.8.6% 2019 New Business 2020 Total Premium 2021 2022 9M23 Renewal Premium 56#29K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank and MTL Enter the 10 Years Bancassurance Agreement ■This transaction is a connected transaction, per Thai regulations, as it is conducted with MTL, a subsidiary which KBank effectively holds 38.25% shares. This transaction does not require shareholder approval at the Shareholders' Meeting as it is a normal business transaction conducted with general trading conditions. ■ KBank deems this transaction as a very important transaction. As such, KBank wants to solicit shareholder participation in the decision so as to enhance transparency and be consistent with good corporate governance practices. ■KBank's Board of Directors resolved to submit the transaction for shareholder approval at the Extraordinary General Meeting of Shareholders on August 26, 2021, and the Extraordinary General Meeting approved the transaction. ■KBank views the continuity of distributing the life insurance products of MTL according to this new Bancassurance Agreement, will: Provide maximum benefits to KBank's overall insurance business value; Provide more favorable conditions and greater benefits to KBank; Continue the cooperation through a 10-years relationship with MTL, a leading life insurance company; Cause no disruption in business operations with MTL and services provided to KBank customers. ■KBank appointed three external independent advisors to provide opinions on the transaction. ■ Key transaction summary of this exclusivity bancassurance agreement : KBank will receive payment of Bt 12.7 bn and annual performance bonus, in return for distributing MTL's life insurance products, health and critical illness insurance products. Amortization of BA agreement value (Bt 12.7 bn) and performance bonus will be recorded in non-interest income in Bank only financial statement and in non-controlling interest in consolidated financial statement. บริการทุกระดับประทับใจ K KASIKORNTHAI Total Economic Value ■ KBank still effectively owns 38.25% of MTL's equity. Bilateral negotiation is a balancing act. Sales Channel Value Company Value* + 1 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Impacts on Income Statement Bancassurance Agreement has impacts on following components in the income statement: KBank (Bank only): Non-interest income: + Bt 1,270 mn (average payment per year) + Performance Bonus MTL: 57 Commission Non-contingent Performance Bonus Bancassurance Exclusivity Value KBank's Share in MTL Equity (38.25%) *Non-listed company Potential destruction to our economic value caused by MTL having to find other sales channel replacement is high. Better value accretion can be achieved through this business alignment. ■ We considered the overall economic value to KBank from both sales channel value and company value i.e. if sales channel value increases, company value will decline. 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 If NPE improves from this arrangement, KBank's consolidated income and MTL's NPE will rise. Note: • Annual payment = Bt1,270 mn (average payment per year) + performance bonus NPE = Net Premium Earned An average payment per year of exclusivity fee has been recognized on a monthly basis, starting from January 1, 2022 onwards. บริการทุกระดับประทับใจ 58#30K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Risk and Credit Management บริการทุกระดับประทับใจ 59 59 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 Management Committee Credit Risk Management Sub-committee Credit Process Management Sub-committee Asset and Liabilities Management Sub-committee Market Risk Management Sub-committee Capital Management Sub-committee Operational Risk Sub-committee Business Continuity Management Sub-committee Information Technology Strategy Sub-committee Digital Oriented Risk, Data and Cyber Security - and IT Risk Management Sub-committee Sustainable Development Sub-committee Digital Asset Sub-committee ■ 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 Business Units CBS/DNW/PBG/ CMB/IBB/WBG/CSI/ Risk Management and Control Units ERM Internal Audit ADD DAS/ICB/MMT/TRN/ WMB/CPD/TS/CSF/ KBTG ■Business units are responsible for continuous and active management of all relevant risk exposure, to be in line with its returns and risk appetite ■Risk management units are 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 Business Division, MMT = Segment and Marketing Management Division, TRN = Transaction Banking Business Division, WMB =Wealth Management and Bancassurance Division, CPD = Credit Products Business Division, TS = Central Treasury Department, CSF = Customer and Enterprise Service Fulfillment Division, KTBG = KASIKORN BUSINESS - TECHNOLOGY GROUP, ERM = Enterprise Risk Management Division, ADD = Audit Division บริการทุกระดับประทับใจ 60#31Approval Process Post Approval 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 (SME Only) ⚫ 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 • FICO Score • Bureau information/Credit history ⚫ Debt service capacity ⚫ Legal document • Limit set up Credit Service Fulfillment Dept. Payment Service Fulfillment Department • Legal document • Limit set up Bank-wide Risk Asset Review Asset Quality Management Operation Dept. • Customer Review by Relationship Manager (RM) ⚫ Credit Monitoring and Asset Management Unit to facilitate RM in customer monitoring . Credit Clinic • Automated collection system Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter generation, phone-based collection Note: FICO Fair Isaac Corporation บริการทุกระดับประทับใจ 62 62 61#32K 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 collection Restructured Loans (Not classified as NPL) stage Relapsed NPL Performing Loans Process Non-Performing Loans Move to Better Status Move to Worsen Status Litigation Process Write-off NPL Sales Note: * Rescheduled Loans are loans (no passed due date) that have changed payment conditions and not incurred losses. (Loans in the Financial Aid Program is a part of Rescheduled Loans) * Financial Aid Program helps customers during the bad macro business condition such as the big flood in 2011, the political unrest in 2014 and COVID-19 in 2020. * Performing loans = Pass Loans (loans passing the due date by less than 1 month) and Special Mention Loans (loans passing the due date by more than 1 month but not over 3 months) ** NPLs = Non-performing Loans loans passing the due date by more than 3 months = Sub-standard Loans, Doubtful Loans, Doubtful of Loss Loans, and restructured loans classified as NPL บริการทุกระดับประทับใจ 63 K KASIKORNTHAI TFRS9: Asset Class and Expected Credit Loss Stage 1: Perform New or good assets Probability of Default (PD) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Asset Class (Defined by Incremental Risks: New definition of SICR and Modified Loans) Stage 2: Underperforming Assets with "> 30 Days Past Due" or higher credit risk than origination capturing via risk information eg. Credit scoring, PD change etc. Expected Credit Loss (ECL): PD x LGD x EAD Incorporate forward looking over lifetime Macro-factor is captured through PD point-in-time Stage 3: Non-performing Defaulted assets Stage 1: Performing 1 Year Define relevant economic factors & scenario Incorporate through PD point-in-time Derive term structure PD & ECL by scenario Weight with probability for final ECL Stage 2: Under-performing Lifetime Stage 3: Non-performing Loss Given Default (LGD) Exposure at Default (EAD) Lifetime ■ Term structure PD is derived over behavioral life ■ 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 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; CCF = Conversion Credit Factor บริการทุกระดับประทับใจ 64 0#33K 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 Approximately 2 months preparation & lawyer process Pre-court (Notice) Issue notice & court filing Approximately 2 months In Court Trial / wait for court ruling Execution Collect payment ruled by court or foreclose Public Auction Liquidation process บริการทุกระดับประทับใจ Approximately 9-18 months Approximately 3 months Approximately 6-9 months K KASIKORNTHAI Credit Bureau Summary National Credit Bureau (NCB)* Two Types of Credit Reports Offered by NCB: ➤ Consumer credit report for individuals ➤ Commercial credit report for businesses Credit report (monthly reported by members) ➤ Customer information (Name, address, identification number, birth date, occupation, etc.) ➤ Credit information (History of application, approval history, loan payment history, etc.) Data Record of Credit Report Individuals: Credit report remains on file for 3 years ➤ Businesses: Credit report remains on file for 3 years ■Members: Financial institutions including commercial banks, specialized financial institutions (SFIs), non-bank financial institutions, finance companies, securities companies, insurance companies, etc. Note: ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank Practice KBank's customers applying for loans Sign agreement to allow the Bank Optional to (Large companies normally have reliable financial statements) Corporate Business to get credit report from NCB Required to 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 Retail Business 4 Customer Segments in Retail (HN, AF, MI and MA) Good credit Poor credit KBank's Credit Scoring Reject application * The concept of a credit bureau started in 1961 and central credit registration started in 1964. The Central Information Service was established in 1999 and its name was changed to Central Credit Information Service in 2000 and to the National Credit Bureau in 2005 บริการทุกระดับประทับใจ 65 66#34K 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 adverse impact from customers with significant credit deterioration, prolonged economic recovery, and high household debt Corporate 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 ■Continuously improve credit monitoring tools to proactively alert to signs of credit deterioration ■ Enhance efficiency of credit processes for customers with different risk profiles SME Business ■Selective on quality of customers ■■Proactive risk management by visiting customers; raise productivity of sales teams and relationship managers ■■Efficient collection processes ■ Enhance efficiency of credit processes for customers with different risk profiles Retail Business ■Selective on high-value customers regarding prevailing BOT regulations and the Bank's policies ■ Proactive and efficient collection processes based on the Bank's models ■ Analyze behavior regularly to identify weak spots ■ Enhance efficiency of credit processes for customers with different risk profiles บริการทุกระดับประทับใจ 67 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK J JK Asset Management Co., Ltd. (JK AMC) KBank jmtwork services Company Profile In June 2022, Thailand's first joint venture co-owned by a commercial bank (KBank via KASIKORN INVESTURE (KIV)) and an asset management company (JMT via JAM), with an initial paid up capital of Bt10bn (50% by KIV: 50% by JAM) • • Operating an asset management business, per the relevant laws and criteria, through the purchase or acknowledgement of transfers of impaired assets, as well as foreclosed properties of KBank and KBanks' affiliates, including other financial institutions and companies, both secured and unsecured loans Benefit to KBank • Allowing KBank to manage NPLs with enhanced efficiency, while offering borrowers more options for settling their debt that are suited to their debt servicing ability . Balance Sheet: Income Statement: Cash and room for new good loans NPL, NPA and credit cost with insignificant impact on coverage ratio Net profit from higher net interest income from new loans and lower credit cost ▲ Net profit from share of profit (loss) from investment using equity method #1 in the AMC business within 3 years 9M23 • Bt73.3bn* 2Q22 3Q22 JK AMC Business Plan Initial NPL • Starts transferred Operation KBank NPL Sales 2022 • Total transfer Bt50bn* (KBank) ⚫ Bt72.0bn* Note: *Legal claim amount, not book value of transferring amount; total KBank's NPL transferred mostly to JK AMC บริการทุกระดับประทับใจ 2025 • Target AUM Bt130bn (KBank and others) 68 880#35K 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 9M23 Performance Highlights ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 69 - ROA Consolidated 2021 2022 1Q23 2Q23 3Q23 9M23 Net Profit (Bt bn) 38.05 35.77 10.74 10.99 11.28 33.02 Profitability - NIM 3.21% 3.33% 3.46% 3.63% 3.76% 3.62% - ROE* 8.44% 7.38% 8.43% 8.82% 8.63% 8.63% 0.98% 0.86% 1.01% 1.03% 1.06% - YTD Loan growth 7.88% 3.03% (1.20%) (1.84%) (2.29%) - YoY Loan growth 7.88% 3.03% 0.28% (1.61%) (1.07%) - YoY Net fee income growth 7.01% (6.89%) (8.13%) (5.31%) (3.96%) - YoY Non-interest income growth (4.17%) (8.42%) 32.00% 19.70% 5.19% 1.03% (2.29%) (1.07%) (5.86%) 19.09% Cost control - Cost to income 43.49% 43.15% 42.50% 43.37% 42.07% 42.65% Asset quality - NPL ratio 3.76% 3.19% - Credit Cost 1.73% 2.11% - Coverage ratio 159.08% 154.26% 3.04% 2.05% 156.68% 3.20% 2.08% 147.31% Loans to Deposits 93.20% 90.77% 90.85% 90.40% Tier 1 Ratio 16.49% 16.84% 16.92% 17.04% 3.11% 2.09% 154.90% 90.95% 17.65% CAR 18.77% 18.81% 18.90% 19.01% 19.62% 3.11% 2.07% 154.90% 90.95% 17.65% 19.62% 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 ■■9M23 net profit increased 1.35% YoY, due to EBPT improvement, while expected credit loss increased 9M23 loans dropped -2.29% YTD from SME, personal loan, home loan, credit cards, and from prudent underwriting policy and NPL outflow management, while regional and KLeasing increased ■9M23 NIM was 3.62%, increasing YoY, mainly due to higher interest rates, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash 9M23 net fee income decreased -5.86% YoY, from brokerage business in line with market conditions, and a drop in transaction service fees ■9M23 cost to income ratio was 42.65%, decreasing YoY, from net total income increased, despite higher operating expenses (partly due to employee expenses from cost of living subsidy measures which were one-time expenses). Cost to income will rise seasonally in 4Q23. Focus on cost management and productivity improvement, with new investments for future growth ■■9M23 NPL ratio was at 3.11%, with a coverage ratio of 154.90% ■2023 credit cost will remain high, and may slightly exceed the target range, but stay within 210 bps, due to ongoing proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan 9M23 capital base remained sufficient to support business growth บริการทุกระดับประทับใจ 70 70#36K KASIKORNTHAI Consolidated Financial Statements Statements of Comprehensive Income (Bt mn) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2021 2022 3Q22 4Q22 1Q23 2Q23 3Q23 9M23 Interest income Interest expenses Interest income - net Fee and service income 135,415 151,333 37,620 41,421 42,441 45,215 47,236 134,892 16,024 18,334 4,532 5,274 7,566 8,514 9,217 25,297 119,390 132,998 33,088 36,148 34,875 36,701 38,019 109,595 48,628 48,345 12,099 12,197 12,529 11,877 12,177 36,583 Fee and service expenses 13,312 15,463 3,974 4,418 4,415 4,163 4,374 | 12,951 Fee and service income - net 35,316 32,882 8,125 7,779 8,114 7,714 7,803 | 23,631 Gain (Loss) on financial instrument measured at FVTPL 5,539 5,053 144 4,674 3,671 3,525 797 | 7,993 Share of profit (loss) from investments using equity method (694) 115 (40) 54 (0.01) (182) 105 (77) Gain (Loss) on investments 817 (130) (17) 38 (152) (212) 230 (135) Net premium earned 69,360 66,056 17,853 18,091 18,422 15,361 15,906 49,689 Other operating income 1,289 2,123 614 675 512 532 673 1,717 Total operating income 234,328 242,542 60,606 67,973 66,419 64,556 64,386 195,361 Underwriting expenses 70,979 69,285 18,871 18,574 19,845 16,487 17,271 53,602 Total operating income - net 163,349 173,258 41,735 49,399 46,574 48,070 47,115 141,759 Total other operating expenses 71,044 74,753 18,251 21,042 19,793 20,847 19,821 60,461 Earning Before Provision and Tax 92,305 98,505 23,484 28,358 26,781 27,223 27,294 81,298 Expected Credit Loss 40,332 51,919 9,948 22,784 12,692 12.784 12,793 | 38,269 Impairment loss of loans and debt securities Operating profit before income tax expenses 51,973 46,585 13,536 5,574 14,089 14,439 14,501 | 43,029 Income tax expenses 9,729 8,633 2,546 933 2,562 2,760 2,838 8,161 Net profit attributable: Equity holders of the Bank 38,053 35,769 10,574 3,191 10,741 10,994 11,282 33,017 Non-controlling interest 4,192 2,183 416 1,450 786 685 381 1,852 Statements of Financial Position (Bt mn) Loans to customers Total Assets Deposits Total Liabilities Total Equity attributable to equity holders of the Bank 2021 2022 3Q22 4Q22 2Q23 3Q23 9M23 2,421,813 2,495,077 2,464,277 2,495,077 2,465,031 2,449,289 2,438,026 | 2,438,026 | 4,103,399 4,246,369 4,229,795 4,246,369 4,238,084 4,268,100 4,266,004 4,266,004 | 2,598,630 2,748,685 2,659,896 2,748,685 2,713,372 2,709,500 2,680,655 2,680,655 3,566,724 3,679,289 3,672,187 3,679,289 3,661,550 3,687,141 3,676,666 3,676,666 476,714 503,270 500,248 503,270 512,421 516,353 525,160 1Q23 525,160 Note: KBank acquired additional ordinary shares in MTGH, to hold a 51% stake valued at Bt7,529mn; the MTGH Acquisition was completed on November 30, 2009. As the MTGH acquisition was completed on November 30, 2009, the Bank's consolidated financial statements from 2010 include the performance of companies in the MTGH Group for the whole year. บริการทุกระดับประทับใจ 71 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Earnings Before Provision and Tax (EBPT) and Net Profit September 2023 (Consolidated) EBPT Net Profit (Bt bn) (Bt bn) 100 87.76 84.89 92.31 98.50 60 81.30 38.73 80 38.05 35.77 40 33.02 29.49 60 40 20 20 0 0 2019 2020 2021 2022 9M23 2019 2020 2021 2022 9M23 9M23 net profit increased 1.35% YoY, due to EBPT improvement, while expected credit loss increased. EBPT (Bt bn) 2020 84.89 EBPT Growth (% YoY) 2019 87.76 0.72% (3.27%) 8.73% 6.72% 2021 92.31 2022 98.50 9M22 70.15 (0.16%) 9M23 81.30 15.90% 1Q23 26.78 15.32% 2Q23 27.22 16.14% 3Q23 27.29 16.23% Net Profit (Bt bn) 38.73 29.49 38.05 35.77 32.58 Net Profit Growth (% YoY) 0.70% (23.86%) 29.05% (6.00%) 15.73% 33.02 1.35% 10.74 (4.19%) 10.99 1.86% 11.28 6.69% บริการทุกระดับประทับใจ 72#37K KASIKORNTHAI Interest Income net September 2023 (Consolidated) - Interest Income and Interest Expenses ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Income - net (Bt bn) (Bt bn) 151.33 133.00 160.00 140.00 130.18 135.41 1134.89 140.00 119.39 127.59 120.00 109.02 | 109.60 102.69 120.00 100.00 100.00 80.00 80.00 60.00 60.00 40.00 20.00 27.49 18.57 16.02 18.33 25.30 40.00 20.00 0.00 0.00 2019 2020 Interest income 2021 2022 Interest expenses 9M23 2019 2020 2021 2022 9M23 9M23 net interest income increased 13.16% YoY, due to higher interest rate, despite higher cost of fund from FIDF fee resumption and higher deposit rate. Interest Income (Bt bn) Interest Expenses (Bt bn) Interest Income - net (Bt bn) Interest Income - net (% Growth YoY) 2019 130.18 27.49 2020 127.59 18.57 2021 2022 135.41 151.33 16.02 18.33 9M22 109.91 13.06 9M23 1Q23 134.89 25.30 42.44 7.57 2Q23 45.21 8.51 3Q23 47.24 9.22 102.69 4.21% 109.02 6.17% 119.39 133.00 9.51% 11.40% 96.85 9.32% 109.60 34.88 36.70 38.02 13.16% 9.84% 14.65% 14.90% 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 September 2023 (Consolidated) Non-interest Income to Average Assets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 73 Non-interest Income Structure Net Premium Earned and Underwriting Expenses (%) (Bt bn) (Bt bn) 4 65 57.80 (+2%) 120 80.49 100 80.65 3 60 80 72.13 72.56 69.36 70.98 66.06 69.28 3% 1.79 55 2 1.32 1.13 50 45.87 (-21%) 0.96 1.01 43.96 (-4%) 149.69 53.60 60 40.26 40 20 4% 45 (-8%) 32.16 1 0 5% 40 64% (+19% YoY) 2019 2021 0 5% 35 2019 2020 2021 2022 9M23 30 72% 80% 2020 2022 9M23 Net premium earned Underwriting expenses Net Premium Earned - net 25 Non-interest Income by Business* 82% Retail Business ■SME Business Corporate Business 20 15 0.1% 5% 73% (Bt bn) 15% 10 10 9% 100% 29.4% 80% 60% 21.0% 40% 20% 0% 8% 5 29.1% 31.3% 17.9% 18.5% 14% 18% 34.3% 34.7% 0 19.6% 23.5% -5 -0.3% 2019 -0.4% -1% -2% 13%% 0.3% 9% 25% 6 13% -0.3% 2020 -4% 2021 -8% 2022 9M23 -8.4% 2 -0.16 -0.44 -1.62 -3.23 -3.91 -12% -2 2019 49.6% 50.2% 53.0% 46.1% 41.8% Other operating income ■Fee and Service Income net 2020 2021 2022 9M23 -6 Net earned premium - net ■Dividend Income 2019 2020 2021 2022 9M23 ■Share of profit/loss from investments on equity method Gain/Loss on investments * Non-interest income excludes capital market business, treasury business and others Non-interest Income (Bt bn) Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) 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. 2019 57.80 Non-interest Income Growth (%YoY) 1.51% 2020 45.87 (20.65%) (4.17%) (8.42%) 2021 43.96 2022 40.26 9M22 27.01 9M23 32.16 1Q23 11.70 2Q23 11.37 3Q23 9.10 (16.22%) 19.09% 32.00% 19.70% 5.19% Non-interest Income Ratio (%) 36.02 29.61 26.91 23.24 21.81 22.69 25.12 23.65 19.31 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 บริการทุกระดับประทับใจ 74#38K KASIKORNTHAI Net Fee Income and Structure September 2023 (Consolidated) Net Fee Income ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Fee Income by Products (Bt bn) 100% 36.74 6% 7% 40 35.32 33.00 32.88 13% 13% 12% 90% 6% Others 8% 4% 30 23.63 6% I 80% (such as capital market business, etc.) Brokerage Business 20 22% 24% 26% 23% 70% 22% 10 6% 60% 6% 3% 0 3% 6% 8% 7% 2019 2020 2021 2022 9M23 50% 4% 4% 4% 21% 21% Net Fee Income to Net Total Operating Income 40% 20% 17% 17% ■Fund Management Business (mainly from mutual fund and securities service fees) Trade Finance Cash management (such as fees from payroll accounts) ■Commercial Credit (%) 30% 30 22% 21% 15% 15% 22.89 20% 17% ■Transaction Services 21.31 21.62 (such as ATM & debit cards, bill payments, 18.98 money transfers, etc.) 20 16.67 10% 13% 13% 16% 17% ■Credit Cards Business 12% (mainly from credit card, merchant fees) 0% 10 2019 2020 2021 2022 9M23 0 2019 2020 2021 2022 9M23 9M23 net fee income decreased -5.86% YoY mainly from brokerage business in line with market conditions, and a drop in transaction service fees. 2019 Fee Income (Bt bn) 50.58 2020 45.70 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 48.63 48.35 36.15 36.58 12.53 11.88 12.18 Fee Income-net (Bt bn) Fee Income Growth (% YoY) 36.74 33.00 35.32 32.88 25.10 23.63 8.11 7.71 7.80 Net Fee Income Growth (% YoY) Net Fee Income to Net Operating Income Ratio (%) 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) - Loan related fee in 9M23 was 16% of loan related and non-loan related fees - net บริการทุกระดับประทับใจ (1.19%) (9.65%) 6.41% (0.58%) (3.61%) (10.17%) 7.01% (6.89%) (0.70%) 1.20% 1.31% (5.51%) (5.86%) (8.13%) 1.66% (5.31%) 0.65% (3.96%) 22.89 21.31 21.62 18.98 20.27 16.67 17.42 16.05 16.56 75 K KASIKORNTHAI Other Operating Expenses September 2023 (Consolidated) Other Operating Expenses Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) 74.75 72.73 70.00 71.04 70 I 60.46 29% 30% Other expenses 60 29% 28% Taxes and duties I 28% 50 7% 8% 8% 7% Premises and equipment expenses 40 18% 16% 15% 8% 17% ■Directors' remuneration 2% 030 0.2% 14% 20 30 20 Employee's expenses 20 46% 46% 49% 46% 49% 10 0 2019 2020 2021 2022 9M23 9M23 other operating expenses increased 12.57% YoY, partly due to an increase in employee expenses from cost of living subsidy measures, which were one-time expenses and an increase in customer service expenses according to business volume. Other Operating Expenses (Bt bn) 2019 72.73 2020 70.00 2021 71.04 2022 74.75 9M22 53.71 9M23 60.46 1Q23 19.79 2Q23 20.85 3Q23 19.82 Other Operating Expenses Growth (%YoY) 6.41% (3.76%) 1.50% 5.22% 6.22% 12.57% 13.82% 15.37% 8.60% บริการทุกระดับประทับใจ 76 60#39K KASIKORNTHAI Loan Structure and Loan Growth September 2023 (Consolidated, TFRS 8: Operating Segments*) Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio (Bt bn) 2,800 Consolidated 2,421 2,495 2,438 Amount (Bt bn) Dec 22 9M23 9M23 Y2023 Sep 23 Loan Growth Yield Range Loan Growth Target 2,245 2,400 (%) (%) 2,002 2,000 34% 36% 36% Corporate Corporate Loans 880 878 (0.3%) 2-4% 36% 1,600 35% SME Loans 780 724 1,200 33% 31% 34% 33% 30% ■SME Retail (7.2%) 5-7% Retail Loans 703 677 (3.7%) 5-7% 800 Other Loans 132 160 21.3% Others 400 28% 28% 29% 28% 28% Total Loans 1) 2,495 2,438 (2.3%) 5-7% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 2019 3% 4% 5% 6% 2020 2021 2022 9M23 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. 1) Other loans were included loans through the World Business Group. In 9M23, WBG loans were Bt107bn, increased 30.1% YTD and 63.9% YoY Loan by Retail Products (All Segments)** (%) (Amount in Bt bn) Dec 22 Sep 23 50505 15 12.13 Y2022 Loan Growth 9M23 Loan Growth 7.88 % Portion to Total Loan 10 4.59 3.03 (%) (%) -5 2019 2020 2021 2022 -1.07 9M23 Housing Loans 443 430 (8.3) (2.9) 17.6 Credit Cards 109 99 7.4 (9.1) 4.1 Consumer Loans 73 62 11.2 (15.2) 2.6 KLeasing 137 149 13.4 8.1 6.1 2019 Loans (Bt bn) 2,002 2020 2,245 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 2,422 2,495 2,464 2,438 2,465 2,449 2,438 Loan Growth (% YoY) Loan Growth (% YTD) 4.59% 4.59% 12.13% 7.88% 12.13% 7.88% 3.03% 0.83% (1.07%) 0.28% (1.61%) (1.07%) 3.03% 1.75% (2.29%) (1.20%) (2.29%) (1.84%) Note: * Since 1Q13, as per the Bank of Thailand's requirement, the Bank has complied with TFRS 8 (Operating Segments) to present operating results for each key segment in financial reports. ** From December 2021 onwards, KBank's housing loans include housing loans and all retail secured loans. Loan Definition - Corporate Loans: Loans Loans of KBank and KBank's Subsidiaries in Corporate Segments (Annual sales turnover > Bt400mn); SME Loans: Loans in SME Segments (Annual sales turnover ≤ Bt400mn); Retail Loans: Loans in Retail Segments; Other Loans: Composed of loans through the World Business Group, the insurance business (MTL), and other loan types not directly attributable to the main business groups. Since Y2020 onwards, loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) were reclassified to their customer segments. - Housing Loans: KBank's housing loans and all retail secured loans; Credit Cards: KBank's credit card loans to all eight customer segments; Consumer Loans: KBank's retail unsecured loans; KLeasing: KLeasing's loans to all eight customer segments บริการทุกระดับประทับใจ 77 K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Loan Portfolio Breakdown by Business, Residency of Borrowers, and Maturity of Interest Repricing June 2023 (Consolidated) (Bt bn) 3000 Loan Portfolio by Business* By Residency of Borrowers (June 2023)* Foreign 5.58% 2500 2,495 2,422 2,449 2,245 Others 2000 1,527 1,610 1,680 1500 1,891 1,781 15.7% 14.5% 13.3% 13.3% 13.6 % 15.3% 148% 1,977 17.7% 18.3% 18.4% 16.8% Housing loans % 16 1000 6.9% 6.6% 15 % 15.3% 14.5% 14.3% 14.7% 14.1% 12.5% 13.2% 14.8% 13.9% 13.7% 13.0% 6.8% 8.6% 9.0% 9.1% 8.6% 8.6% 8.4% 8.8% 11 % 500 2.0% 1.9% 2.1% 1.9% 1.8% 1.7% 1.6% 1.4% 1.5% 1.6% 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 48.1% 49.1% 48.6% 47.9% 46.7% 44.5% 41.7% 40.5% 42.1% 41.7% Infrastructure and services Property development and construction Manufacturing and commerce ■Agriculture and mining Domestic 94.42% By Maturity of Interest Repricing (June 2023)* Definition of Loans 1) by industry Gross loans Loans to customers less deferred revenue 2) by currency = Loans to customers and AIR - net 3) by maturity of interest repricing = Loans to customers less deferred revenue Loans by Bangkok and Metropolitan vs. Upcountry Loan by Bangkok and Metropolitan vs. Upcountry Proportion of KBank's Outstanding Lo: 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Bangkok and Metropolitan Upcountry 64% 63% 64% 62% 59% 58% 62% 62% 65% 36% 37% 36% 38% 41% 42% 38% 38% 35% > 6 months 18.19% Others 0.65% <=6 months 11.72% Note: *The information on loans breakdown by industry, residency of borrowers, and maturity of interest repricing are disclosed on half year basis Immediate repricing 69.44% บริการทุกระดับประทับใจ 8 78#40K KASIKORNTHAI Asset Quality September 2023 (Consolidated) NPL Ratio ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Coverage Ratio Classified Loans* (%) (%) 5 200 4 3.65 3.93 3.76 148.60 149.19 159.08 154.26 154.90 3.19 3.11 150 3 100 Total (Bt bn) Stage 1 Performing Stage 2 Under-performir Stage 3 Non-performing 106 2,438 2021 2022 1Q23 2Q23 3Q23 2,130 2,230 2,211 2,192 202 188 181 2,186 179 179 93 89 94 87 2,511 2,481 2,465 2,452 2 1 50 0 0 2019 2020 2021 2022 9M23 2019 2020 2021 2022 9M23 NPL ratio in 9M23 was at 3.11%, with a coverage ratio of 154.90%. Asset quality is manageable with prudent policy and focus efforts. 2019 2020 2021 2022 9M22 9M23 1Q23 2Q23 3Q23 NPL Ratio (%) 3.65 3.93 3.76 3.19 3.07 3.11 3.04 3.20 3.11 Coverage Ratio (%) 148.60 149.19 159.08 154.26 148.74 154.90 156.68 147.31 154.90 SML to Total Loans Ratio (%)* 2.80 Loans with significant increase in credit risk (%) 7.80 7.27 6.47 6.52 6.19 6.25 6.15 6.19 Note: * Loans to customers and accrued interest receivables: Under TFRS 9, the classified loans are defined by 3 stages based on incremental risks, which cannot directly compare with the previous number these were defined by days past due. บริการทุกระดับประทับใจ K KASIKORNTHAI Expected Credit Loss and Credit Cost September 2023 (Consolidated) Impairment Loss of Loans and Debt Securities Expected Credit Loss ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Cost (Bt bn) (bps) 60 51.92 50 43.55 40.33 350 38.27 40 34.01 300 205 211 207 250 30 174 173 200 20 150 100 10 0 50 0 2019 2020 2021 2022 9M23 2019 2020 2021 2022 9M23 79 2023 credit cost will remain high, and may slightly exceed the target range, but stay within 210 bps, due to ongoing proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan. Expected Credit Loss (Bt bn) 2019 34.01 2020 43.55 2021 40.33 2022 51.92 9M22 9M23 1Q23 29.14 38.27 12.69 2Q23 12.78 3Q23 12.79 (Impairment Loss of Loans and Debt Securities) Credit Cost (bps) 174 205 173 211 159 207 205 208 209 บริการทุกระดับประทับใจ 80 80#41K KASIKORNTHAI Bad Assets Resolution September 2023 (Consolidated) Write-offs ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK NPL Portfolio Sales (Bt bn) 70 60 50 40 30 (Bt bn) 59.0 80 72.0 73.3 70 60 50 40 26.4 27.4 30 15.4 21.5 20 11.4 6.4 8.4 7.1 6.8 2008-2015: 9.0 10 2021: no bulk NPL sales no NPL sale 0 2016 2021 2022 9M23 Gill 19.9 20 10.7 10.3 10.1 9.6 10 5.5 4.3 3.9 7.3 5.0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Outstanding Foreclosed Properties 2007 NPL sales 2008 2015 2017 2018 2019 2020 legal claim amount, not book value of transferring amount NPL sales mostly to AMCS except 2007: Standard Bank Asia Limited and Morgan Stanley Emerging Markets Inc., 2016: JMT Network Services PCL, and 2022: Most NPL sales to JK Asset Management Sales of Foreclosed Properties (KBank only) (Bt bn) 31.5 28.4 24.9 16.7 15.9 15.1 12.5 12.1 16.1 17.4 19.6 13.4 (Bt bn) 54.7 56.4 46.3 13.1 6.5 5.4 5.6 6.0 5.0 4.8 4.1 4.0 4.3 2.8 3.0 2.9 3.0 2.4 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20229M23 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Note: On September 11, 2013, the Bank was formally notified of its final loss sharing portion under the asset transfer agreement with TAMC established in October 2001. This amounted to Bt206mn. An amount of Bt1,159mn relating to the provision for losses recorded in prior years has been reversed through profit or loss in 2013. บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK TFRS 9: Investment in Securities Portfolio and Structure September 2023 Instrument Type (Consolidated) Financial Assets Classification (TFRS 9) Consolidation Bank only (Bt bn) (Bt bn) 1,098 1,200 1,029 1,037 1,098 1,029 1,037 0.4% 1,200 824 0.9% 1.0% 824 0.3% 1,000 11% 0.8% 1.0% 777 11% 10% 1,000 0.3% 11% 800 0.4% 12% 11% 0.2% 10% 17% 800 14% 56% 17% 18% 560 15% 62% 600 15% 65% 478 495 600 20% 56% 329 8% 18% 30% 13% 18% 400 400 11% 33% 61% 59% 60% 35% 38% 14% 200 53% 54% 29% 200 38% 32% 56% 50% 41% 67% 0 0 6% 6% 5% 5% 8% 6% 4% 6% 2019 2020 2021 2022 9M23 2020 2021 Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) 2022 9M23 Investments Subsidiaries 2020 2021 2022 9M23 Amortized Cost Equity Investment Foreign Bonds Corporate Bonds ■Government & State Enterprise Bonds Fair Value through OCI Fair Value through PL ■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. 81 Investment Portfolio (Bt bn) 824 1,098 1,029 1,050 1,037 Investment Portfolio (% Growth YoY) 23.51% 17.22% 6.15% 33.16% (6.23%) 11.03% (1.24%) บริการทุกระดับประทับใจ 2018 2019 2020 2021 2022 663 777 9M22 9M23 1Q23 2Q23 3Q23 1,057 1,054 1,037 (2.08%) 0.38% (1.24%) 82#42K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Deposits Growth and Loans to Deposits Ratio September 2023 (Consolidated) Deposits Loans to Deposits Ratio (Bt bn) 3,000 2,599 2,749 2,681 100% 2,345 96.6% 2,400 95.7% 2,072 95% 93.2% 1,800 90.8% 90.9% 1,200 90% 600 0 85% 2019 2020 2021 ■Deposits 2022 9M23 2019 2020 2021 Loans to Deposits 2022 9M23 Deposits and Loans to Deposits Ratio is in line with peers. Deposits (Bt bn) Deposits (% YoY) Deposits (% YTD) 2018 2019 2020 2021 2022 1,995 2,072 2,345 2,599 2,749 6.2% 3.9% 13.2% 10.8% 5.8% 6.2% 3.9% 13.2% 10.8% 5.8% 9M22 9M23 1Q23 2,660 2,681 Loans to Deposits Ratio (%) 5.1% 0.8% 2.4% (2.5%) 95.9% 96.6% 95.7% 93.2% 90.8% 92.7% 2,713 3.0% 2Q23 3Q23 2,709 2,681 1.4% (1.3%) (1.4%) (2.5%) 0.8% 90.9% 90.9% 90.4% 90.9% บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Funding Structure and Interest Rate Movement September 2023 (Consolidated) Funding Structure Deposit Structure 83 (Bt bn) 3,200 2,236 2,502 2,889 2,972 2,946 (Bt bn) I 2,800 2,599 6% 6% 6% 2,345 2,800 2,400 2,072 2.681 2,749 18% I 20% 3% 3% 18% 2,400 2% 3% 4% 2,000 20% 23% 2,000 3% 4% 1,600 1,600 76% 74% 1,200 76% 1,200 800 93% 94% 90% 92% 91% 800 71% 74% CASA = 80% 400 400 0 0 6% 6% 6% 6% 2019 2020 2021 2022 9M23 2019 2020 2021 2022 6% 9M23 Deposits ST and LT Borrowings Current ■ Savings Term Interbank and Money Market KBank Interest Rate Movement (Retail customers) Deposit rates (%) (October 4, 2023) ST and LT Borrowings (%) 8.00 Savings 0.30 (Bt bn) 7.00 103 Fixed 3M-12M 1.05-1.70 125 90 6.00 82 5.00 Fixed 24M-36M 2.15-2.30 100 69 68 4.00 75 Lending rates (%) (October 4, 2023) 99% 87% 84% 3.00 50 97% 100% MLR 7.27 2.00 25 16% 1% 1.00 13% 3% MOR 7.59 0 0.00 2019 2020 2021 MRR 7.30 2016 2017 2018 2019 2020 2021 2022 10M23 ■ST Borrowing B/E & Others 2022 LT Borrowing 9M23 MLR Savings -Fixed3M บริการทุกระดับประทับใจ 84 54#43K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Long-term Senior/Subordinated Debentures Interest Issue Date Name Type Feature Amount Maturity Years Interest Rate Payment Credit Rating (Per annum) period Long-term Subordinated Debentures 10/08/2021 Additional Tier 1 Subordinated Notes* Unsecured 14/10/2020 Additional Tier 1 Subordinated Notes* Unsecured Perpetual NC5.5Y Perpetual NC5Y USD350mn 4% Semi- annually Ba2 by Moody's USD500mn 5.275% Semi- annually Ba2 by Moody's 02/10/2019 Tier II Subordinated Notes due 2031* Unsecured 12NC7 USD800mn 12 Years (02/10/2031) 3.343% Semi- annually Ba1 by Moody's BB+ by Fitch Ratings Long-term Senior Debentures Senior Unsecured Notes 07/03/2023 Unsecured USD600mn due 2028* 5 Years (07/03/2028) 5.458% 27/12/2022 JPY Sustainability Long-Term Debentures #2** Unsecured JPY2,520mn 2.1 Years (20/01/2025) 0.655% Semi- annually On 27/12/23 and 20/01/25 Baa1 by Moody's BBB by Fitch Ratings AA+ (tha) by Fitch 15/12/2022 USD Sustainability Long-Term Debentures** Unsecured USD45mn 3 Years (15/12/2025) 5.34% Semi- annually AA+ (tha) by Fitch 15/12/2022 JPY Sustainability Long-Term Debentures #1** Unsecured JPY2,745mn 3 Years (11/12/2025) 0.86% Annually AA+ (tha) by Fitch Floating Rate Notes 07/12/2018 due 2023* Unsecured USD15mn 5 Years (07/12/2023) 3m Libor+0.95% Quarterly USD100mn 5 Years (30/10/2023) 3m Libor+0.95% Quarterly 30/10/2018 Floating Rate Notes due 2023* (Sustainability Bond) Unsecured Note: *The issued notes are drawn from the Bank's USD4bn Euro Medium Term Note Programme (EMTN) Note: ** The issued notes are drawn from the Bank's Bt30bn Medium Term Note Program (MTN) K KASIKORNTHAI บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: The wholly-owned subsidiaries, and Muang Thai Life Assurance 85 บริการทุกระดับประทับใจ 86#44K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: Business Profile and Aspiration September 2023 KAsset EST. Mar 1992 Company Name Company Profile KASIKORN ASSET MANAGEMENT CO., LTD. A leader in fund management business (i.e., mutual funds, provident funds, and private funds) Asset Size Bt2.75bn KResearch EST. Dec 1994 KASIKORN RESEARCH CENTER CO., LTD. Professional in providing knowledge and analysis in economics, business, money and banking- related issues Only research house which is an affiliate of a bank Bt0.18bn KSecurities EST. Jul 2002 KASIKORN SECURITIES PCL. Professional in providing a complete range of excellent financial solutions and services, including investment banking, securities underwriting, and securities brokerage Bt29.45bn KLeasing EST. Dec 2004 KASIKORN LEASING CO., LTD. Professional in providing three core products: hire purchase, financial lease, and floor plan KF&E EST. Jul 1990 KASIKORN FACTORY AND EQUIPMENT CO., LTD. Professional in providing a complete range of machinery and equipment leasing services Bt149.51bn Bt22.81bn Market Share 18.4% #1 Awareness based on a survey 2.75% (#12) 9%1 14% 2023 Targets Maintain top tier position Maintain the status as a top-notch research house Maintain leading position in securities business under local bank parent 3-year Aspiration Maintain top tier position Maintain the status as a top-notch research house Top of mind securities firm Maintain a good asset quality portfolio Provide complete range of financial solutions and maintain good asset quality Maintain top tier position and focus on good asset quality Top tier leader in sustainability in equipment leasing Note: 1 Outstanding market share among 6 banks leasing companies (AYCAL, TTB, SCB, KK, TISCO and KL), lasted data as of 1H23 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: 2023 Key Operating Performance September 2023 KAsset EST. Mar 1992 KResearch EST. Dec 1994 2023 Key Operating Performance Assets Under Management (AUM): Bt1.59trn #1 Awareness based on a survey KSecurities EST. Jul 2002 Trading volume: Bt524bn KLeasing EST. Dec 2004 Outstanding loans: (8.6% YoY) - Number of customers grew 8% YoY KF&E EST. Jul 1990 Outstanding loans: Bt148.51bn (+12.84% YoY) Bt23.95bn (+1.26% YoY) (Bt bn) 1 8965 4 3 2-0 The wholly-owned subsidiaries of KBank: Net Profit 5.99 5.39 5.6 4.91 4.56 3.66 3.85 3.23 7.2 22 6.26 4.12 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 87 10 Net profit dropped from the same period of 2022, -12.17% YoY. However, KBank continues to create synergy among its wholly- owned subsidiaries. บริการทุกระดับประทับใจ 88#45K KASIKORNTHAI KAsset Highlights in 9M23 September 2023 หลักทรัพย์จัดการกองทุนกสิกรไทย #KASIKORN ASSET MANAGEMENT AUM (KAsset vs. Industry) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) 10,000 8,750 (Bt bn) 2,000 8,000 8,279 7,737 8,228 8,632 6,959 7,173 6,368 6,000 5,118 5,534 4,253 4,000 3,015 742 3.633 1,090 1,132 1.240 1.303 1.380 1,431 1,477 1,575 1,500 1,589 1,489 946 851 2,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Industry -KAsset Market Share by AUM 1,000 500 Industry Outlook: 9M23 industry AUM at Bt8.63trn, increasing 7.5% YoY KAsset AUM at Bt1.59trn, increasing 8.6% YoY KAsset Highlights: Ranked #1 in Mutual Fund and #2 in Provident Fund with market share of 22.5% and 16.9%, respectively Ranked #2 in total AUM with market share of 18.4% Mutual fund accounts for 71% of KAsset AUM KAsset AUM Breakdown by Type (%) 30.0 21.4 20.6 18.5 17.8 18.0 18.118.4 19.5 19.0 19.6 15.0 0.0 KAsset SCBAM 11.3 10.5 10.2 10.49.9 10.7 9.6 10.1 9.3 9.5 7.1 6.5 6.8 6.8 6.6 BBLAM KTAM 2019 2020 2021 2022 9M23 36.1 35.9 35.8 35.0 31.0 Provident Fund 15% KSAM Other บริการทุกระดับประทับใจ Private Fund 14% Mutual Fund 71% K KASIKORNTHAI KResearch Highlights in 9M23 September 2023 ศูนย์วิจัยกสิกรไทย ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 开康研究中心 KASIKORN RESEARCH CENTER 30,000 Number of News Quotes 25,000 23,873 22,431 20,000 18,047 14,532 15,000 11,500 10,000 7,910 8,452 5,000 | 16,888 0 2016 2017 2018 2019 2020 2021 2022 9M23 89 KResearch Highlights: The most quoted private research house in Thailand #1 awareness, being the top-of-mind research house for the public, based on a survey Source: News Center, isentia, IQnewsClip, etc. The number of quotes from the media newspapers online newspaper and other online news. (excluding magazines, TVs, and Radio) บริการทุกระดับประทับใจ 90 90#46K KASIKORNTHAI KLeasing Highlights in 9M23 September 2023 ลีสซิ่งกสิกรไทย 开泰超 KASIKORN LEASING KLeasing vs. Industry (Thousand Units) 1,500 (Bt bn) 250 1,042 1,008 200 1,000 872 800 769 792 848 149 762 150 587 137 100 500 89 91 97 108 115 115 121 50 2 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Total Car Sales in Thailand - KLeasing Outstanding Loans Market Share by Total Outstanding Loans (%)¹ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Industry Outlook: 9M23 industry car sales totaled 586,839 units KLeasing Highlights: 9M23 KLeasing loans totaled Bt148.51bn, increasing 12.84% YoY 9M23 KLeasing NPL ratio was 1.82%, lower than the industry average³ KLeasing Outstanding Loans Breakdown² (%) 50 Floorplan 7% 2929292829 2828272827 25 1616161413 Fleet/Finance Lease 89 101212 1111101010 77899 17% 0 AYCAL TTB SCB 2019 ■2020 Note: ■2021 KK 2022 TISCO KLeasing 1H23 Hire Purchase 76% Other Used Car Car to 4% Cash 16% New car 80% 1 Excluding captive and non-bank leasing, Lasted Data as of 1H23 2 New car includes HP New car, Fleet finance, Finance lease (FL) and Floorplan and Used car includes Car to Cash (K-Car / Car registration loan) and other used cars 3 Source: BOT, Lasted Data as of 1Q23 = 1.89% บริการทุกระดับประทับใจ K KASIKORNTHAI KSecurities Highlights in 9M23 September 2023 หลักทรัพย์กสิกรไทย #KASIKORN SECURITIES Trading Volume (KSecurities vs. Industry)* (Bt bn) 42,000 36,000 30,000- 24,000 18,000 12,000 6,000- 12,377 12,48613,772 7,962 8,640 430 411 207 117 0 (%) 10.0 (Bt bn) KS CAGR Y2008-2022: 16.7% 40,998 2,000 1,800 34,057 1,517 1,600 29,829 24,790 21,296 22,937 1,119 1,021 I 817 20,345 1,251 19,549 21,899 22,442 19,066 683 812 860 868 800 600 524 400 200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M23 Total Industry Trading Volume KS Trading Volume Market Share by Trading Volume* 5.0 3.83.7 3.0 3.43.53.4 3.02.8 3..2.9 1.92.42.42.22.0 0.0 KS INVX KTX ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 1,400 Industry Outlook: ■9M23 industry trading volume* was Bt19.07trn, decreasing 30% YoY KS trading volume was Bt524.49bn 1,200 KSecurities Highlights: 1,000 KS ranked #12, with 2.75% market share Majority of revenue came from brokerage Number of customers account grew 8% YoY to 373,810 customers in 9M23 KSecurities Revenue by Business 5.4 4.24.9 6.16.35.1 4.74.9 4.04 4.6 2.92.92.1.91.7 BLS TNS MST ■2019 2020 2021 2022 ■9M23 Note: * Industry trading volume excluding proprietary trades บริการทุกระดับประทับใจ Investment Banking 5.6% Brokerage and other 94.4% 91 92#47K KASIKORNTHAI KF&E Highlights in 9M23 September 2023 แฟคเตอรี แอนด์ อีควิปเมนท์ กสิกรไทย ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 开泰设备融资 KASIKORN FACTORY AND EQUIPMENT KF&E Loan Outstanding 25.11 25.15 24.31 23.95 (Bt bn) 30.0 25.0 22.88 20.38 20.0 17.63 15.0 10.0 5.0 0.0 2017 2018 2019 2020 2021 2022 9M23 Industry Outlook: 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: 9M23 KF&E loan outstanding was Bt23.95bn, +1.26% YoY KF&E currently ranked #2; 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 93 K KASIKORNTHAI KASIKORN INVESTURE COMPANY LIMITED (KIV) A holding company under KASIKORNBANK FINANCIAL CONGLOMERATE to invest in other companies with its partners Investment Value Total around 30,000 There are Million Baht 14 Companies under KIV's structure ⚫ KASIKORN LINE COMPANY LIMITED (JV) ⚫ KASIKORN LINE INSURANCE BROKER COMPANY LIMITED Operate business related to personal loan, nano loan and insurance broker business via LINE platform NGERN HAI JAI COMPANY LIMITED ⚫ CAR HERO COMPANY LIMITED Operate business related to auto loan • JK ASSET MANAGEMENT COMPANY LIMITED (JV) LIMITED (Investment) CAR HERO ⚫ J ASSET MANAGEMENT COMPANY К Operate business related to bad debt management both secured and unsecured loan (Debt collection) KASIKORN LINE ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK • KASIKORN CARABAO COMPANY LIMITED (JV) Provide financial service for TD's retail customers and stakeholders of Carabao Conglomerate • TD TAWANDANG COMPANY LIMITED kbao ตะวันแดง TD (Investment) Operate retail management business under brand TD Kiv KASIKORN INVESTURE Travel Ecosystem Platform* Travel Ecosystem T2P HOLDINGS THINKERFINT ⚫ T2P HOLDINGS COMPANY LIMITED* Operate business related to e-wallet as a financial transaction solution and provide Nano loan to small merchants ⚫ THINKERFINT COMPANY LIMITED (Investment) Operate business related to system development to support credit approval decision KGP KAPTURE ONE KAPTURE ONE COMPANY LIMITED (JV) A loyalty management company to provide loyalty service for KBank and its subsidiaries BUZZEBEES COMPANY LIMITED (Investment) A leading CRM and customer engagement solution KASIKORN GLOBAL PAYMENT COMPANY LIMITED* Provide digital payment services for merchants with wide range of sources of fund Note: In the restructuring process Online platform and travel solution for corporates and retails Grab GRAB HOLDINGS LIMITED (Investment) The digital platform for on demand service บริการทุกระดับประทับใจ 94 44#48K KASIKORNTHAI KIV Business Model Mass Market ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Opportunity to Improve Profitability KIV Business Model Profitably Servicing the Mass Market (Inclusive of Underbanked) Major Financial Services Categories Bank's + Partner's Capabilities = Cost Down • Non-Corp Loans Asset-Based Investment Insurance Brokerage Deposit / Saving / Source of Fund Payment / Channels e-Wallet Infrastructure Group-Savings e-Wallet Payment Gateway • Loyalty Points KAPTURE LINE BK TPP KGP ONE LINE BK BUT Over 15 Million Users Key KBank's Capabilities 888 K+ Over 20 Million K Plus Users Sales & Service Channel (Selling / KYC) % Credit Scored • P2P Borrow-Lend Value-Chain Based . Foreign Currency kbao K Over 10 Billion Baht Note: According to BOT's Survey on Financial Inclusion, there were 45.5% usage, 49.5% self-exclusion, and 5% no-access. บริการทุกระดับประทับใจ K KASIKORNTHAI KIV's Economic Value 900 - 1,100 Economic Profit¹) Million Baht 81 2022 2023 KIV's Investment Value²) 21,500 25,000 30,000 No. of Investment 6 14 Loan Book 37,000³) 40,000 45,000 層 Deposit Wallet LINE BK T2P To Be Launched Data Core IT Back-End Funding ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 4,500 - 5,000 2026 65,000 - 70,000 14 75,000 80,000 Significantly increase KBank's corporate values • Faster Speed and Efficiency of Business Operations • Better Cost Effectiveness • More Accessibility in Ecosystems . A Crucial Role to Boost KBank's ROE Performance in the Next 3-5 Years Note: 1) Economic Profits = Profit Sharing of Companies Under KIV + Net Interest Income from Loan to Companies Under KIV + Additional Sale and Service for KBank 2) Investment Value = Capital Injection + Accumulated Profit Sharing of Companies Under KIV + Realized and Unrealized Gains (Losses) on Investment บริการทุกระดับประทับใจ 95 96 90#49K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Accounting Treatment of KIV on KBank's Consolidated Financial Statements KBank Statement of Financial Position Assets Cash Financial assets measured at FVTPL Investments - net Investments in subsidiaries, associates and joint venture - net Premises and equipment - net Other assets Liabilities and Equity Total Liabilities Total Equity Accounting Treatment: " KIV 1.Subsidiaries Accounting Method: Consolidation 2.Associate / Joint Venture Accounting Method: Equity Method 3.Investment (FVTPL, FVTOCI) Accounting Method: Fair Value Subsidiaries: line by line consolidation to statement of financial position, profit and loss and OCI Associate / Joint Venture: Investment return from net profit as share of profit (loss) from investments using equity method and from OCI as share of OCI from investment using equity method Investment: o Investment return as dividend income (equity instrument) and interest income (debt instrument) о Investment value is mark to market to statement of Profit and Loss or OCI subjected to the instrument type บริการทุกระดับประทับใจ KBank Statement of Profit or Loss Interest income - net Fees and service income - net Gain (loss) on financial instrument measured at FVTPL Share of profit (loss) from investments using equity method Dividend income Total other operating expenses Expected credit loss Net Profit Statement of Other Comprehensive Income (OCI) Gain (loss) on investments in equity instruments designed at FVTOCI - net K KASIKORNTHAI Life Insurance Industry in Thailand Premium per % GDP by Country (%) 20.0 15.0 14.0 11.6 10.0 8.2 6.45.85.4 7.67.57.4 5.0 3.23.23.0 4.03.98.7 1.11.00.9 2.4.12.0 3.43.4.4 -Y2020 ■Y2021 Y2022 1.10.9 1.21.51.3 1.6 1.6 1.6 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2022, 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 9M23 with 11.5% market share of total premium. #4 in life insurance industry in Thailand, in 2022 Source: Swiss Reinsurance Size of Market by Premium(%) Market Share by Total Premium in Life Insurance (%) Source: The Thai Life Assurance Association New Business Total Premium Premium (%) (Bt bn) CAGR 13-22: 5% (Bt bn) 30.0 700.0 614.1 611.4 200.0 24.9 25.6 180.0 25.0 23.8 600.0 500.0 537.5 568.3 601.7 627.4 160.0 610.9 20.0 140.0 503.9 600.2 15.3 14.7 400.0 442.5 1455.1 120.0 15.0 13.2 13.7 100.0 300.0 80.0 10.0 200.0 60.0 14.44.0 11.1.31.58.1 5.8 5.9 5.0 100.0 40.0 20.0 0.0 2013 2014 2015 2016 2017 2018 2019 Total Premium 2020 2021 New Business Premium 2022 9M23 ΑΙΑ FWD TLI MTL KTAL BLA *New Business Premium in 9MM23 = Bt132.0bn Source: The Thai Life Assurance Association Note: Total Premium = New Business Premium + Renewal Premium; New Business Premium First Year Premium + Single Premium บริการทุกระดับประทับใจ ■2021 2022 B 9M23 5.8 5.2 5.6° 5.4 5.1 4.4 7.1 7.5 7.4 1.8 2.4 1.51.7 AZAY PLT OLIC TMLTH Others 98 97 40#50K KASIKORNTHAI Bancassurance Highlights in 9M23 40 (%) Bancassurance Market Share by Total Premium (%) 28.6 31.8 ■2021 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 30 27.3 18.4 20 16.80 ■ 2022 9M23 MTL ranked #2 in Bancassurance market #2 in Bancassurance total premium with 16.0% market share #2 in Bancassurance new business premium with 16.3% market share 12.2 916.9 10 10 8.3 8.78.69.18.07.3 8.58.4 8.7 7.0 6.25.8 3.84.44.5 1.7 2.42.9 2.4 2.31.6 2.2 2.2.22.4 0 FWD MTL PLT BLA KTAL TLI AIA AZAY DLA SELIC Others (%) Bancassurance Market Share by New Business Premium (%) 30 26.0 21.31.2 20 18.3 17.1 16.3 13.3 17.8 2021 2022 9M23 12.3 10 10.6 9.87.6 7.4 7.77.9 7.2 5.3 4.9 5.4 3.9 3.9 4.76.15.1 5.9 6.1 3.3 4.0 2.6 3.4 4.24.05.1 0 FWD MTL PLT AIA DLA KTAL BLA TLI SELIC AZAY Others Source: Muang Thai Life Assurance (MTL), The Thai Life Assurance Association (TLAA) monthly report (new format) Note: Bancassurance premium include all bank partners' premiums of MTL บริการทุกระดับประทับใจ 99 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank's Strategic Acquisition in Muang Thai Group Holding (MTGh) MTL's insurance business supports KBank's strategic objective of providing a full range of financial services to satisfy customers' needs and universal banking platform MTGh MTI MTL MTB FVC AIGEN MTIB Current KBank Economic Interests Muang Thai Group Holding Co., Ltd. (MTGh) 51.00% Muang Thai Life Assurance PCL. (MTL) 38.25% Muang Thai Insurance PCL. (MTI) 10.20% Muang Thai Broker Co., Ltd. (MTB) 50.99% MT Insure Broker Co., Ltd. (MTIB) Fuchsia Venture Capital Co., Ltd. (FVC) AIGEN Co., Ltd. (AIGEN) 38.25% 38.25% 48.83% Established on 6 April 1951 mtl MUANG THAI LIFE เมืองไทย First life insurance company to have received the Royal benevolence in granting the appointment as the life insurance company of His Majesty King Bhumibol Adulyadej ■ Joined hands with Ageas in 2004 (formerly known as Fortis Insurance International NV) and joined hands with KBank in 2009 ◉ Credit Rating: > S&P Global: BBB+ (Stable Outlook) Fitch Ratings: A- (Stable Outlook)/AAA(tha) (Stable Outlook) ■Insurance Hall of Fame Award 2022 Micro Insurance Awards 2022 OIC InsurTech Award 2022 from the Office of Insurance Commission (OIC) ■ Corporate Excellence Award Inspirational Brand Award from Enterprise Asia ■ HR Asia Best Companies to Work for in Asia 2023 Award from HR Asia Magazine ■ Excellence in HR Innovation Award (Gold) from Human Resources Online Ageas holds 7.83% in MTGH and holds 24.99990% in MTL บริการทุกระดับประทับใจ (Data as of 30 Sep 2023) 100#51K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Muang Thai Life Assurance (MTL) Information Summary เมืองไทย mtl MUANG THAI LIFE Strong fundamentals and revenue generation, helped by process efficiency and service quality enhancements; platform and synergy alignment between MTL and KBank Risk-Based Capital (RBC) remains strong, sufficient to support business growth and much higher than OIC minimum requirement Statements of Comprehensive Income (Bt bn) Strategy in 2023 Under the strategic concept of "Happiness Reinvented", the Company continues to develop life and health insurance products and be the No.1 most trusted life & health partner with products, services and innovations that cater to the diverse needs of consumers, covering all genders, ages, groups, lifestyles and every role and responsibility in life. Our goal is to democratize insurance and make it accessible for all through our four core pillars: People, Preferred Partner, Customers and Beyond Our Customers. 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. 2021 2022 9M23 Net premiums earned 69.4 66.1 49.8 Net investment income 22.5 20.4 17.2 Total revenues 91.9 86.5 67.0 Long-term technical reserve increase from the previous period 25.6 14.5 11.0 Net benefit payments and insurance claims 41.6 50.6 39.6 Commissions and brokerages 8.6 7.4 5.3 Other underwriting expenses 0.7 2.5 1.9 Operating expenses & Other 5.5 4.6 3.9 Key Financial Targets Total Expenses 82.0 79.6 61.7 Bt bn 2018 2019 2020 2021 2022 9M23 Profit before income tax expense 9.9 6.9 5.3 Total Premium Income tax expense 94.5 83.8 75.3 73.0 69.3 52.5 1.8 1.2 1.0 (after refund) Net profit (loss) 8.1 5.7 4.3 % Growth -8% -11% -10% -3% -5% 3% Statements of Financial Position (Bt bn) 2021 2022 9M23 2021 2022 9M23 ROE (%) 10.2% 6.6% 7.7% Total Assets 607.5 625.0 634.1 Total Liabilities 520.9 537.6 547.7 ROA (%) 1.4% 0.9% 1.1% Total Equities 86.6 87.4 86.5 Risk-Based Capital (RBC) 359.7% 331.5% 343.6% บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Investment Portfolio and Insurance Premium MTL Investment Portfolio: MTL Total Premium Fixed Income accounted for around 82% (bn) 90 83.8 75.3 Ghehqwxuh 5917 ( 80 73.0 69.3 70 60 57.9 52.5 53.8 49.3 Vwr fn <1; ( 50 43.3 Orwh 614 ( Srdf #rdq 618 ( 40 30 26.0 26.0 21.6 23.7 34.7 17.8 20 XqlWuxvw 613 ( 10 0 T Jry# #2# Erqg 85k ( Ghsrvlw 314( T Total Premium Growth (%YOY) Y2019 Y2020 Y2021 Y2022 9M23 MTL Industry -11% -10% -3% -5% 3% គុំនុំ ន ៩ ៖ -3% -2% 2019 2020 2021 2022 9M23 P ruwjdjh# Ordq 319( New Business Premium Renewal Year Premium ■Total Premium Iqyhvwp hqw Surshuw 31; ( Assets Under Management (AUM)* (30 Sep 23): Bt 592,092 bn MTL Total Premium by Products: Ordinary product accounted for around 86% in 9M23 100% 80% 60% 40% 20% 0% 2019 Group 2020 Personal Accident *Remark: Invested Assets + Investment Property 2021 ■Industrial 2022 Ordinary 9M23 Source: The Thai Life Assurance Association MTL Total Premium by Channels: Bancassurance accounted for about 55% in 9M23 100% 80% 60% 40% 20% 0% 2019 Other 2020 ■Direct Marketing 2021 2022 9M23 Bancassurance ■Agents Source: The Thai Life Assurance Association (TLAA)/2019 - 3Q22 data from TLAA monthly report (new format) บริการทุกระดับประทับใจ 101 102#52K KASIKORNTHAI MTL International Business Expansion ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Current International Business Project (On-going) Cambodia Company Name Sovannaphum Life Assurance Plc. Dara Insurance Plc. Lao PDR ST-Muang Thai Insurance Co., Ltd. Vietnam MB Ageas Life Insurance Co., Ltd. Entry Strategy เมืองไทย Joint Venture with Canadia Investment Holding Plc. Joint Venture with Individual Shareholders Ownership by MTL 49% 25% Joint Venture with ST Group Co., Ltd and Muang Thai Insurance Company Limited (MTI) Joint Venture with Military Bank and Ageas 22.5% 10% Myanmar Operation Year 2015 2018 2016 2017 2014 Business Operation Life Insurance General Insurance Composite Insurance (Life & General) Life Insurance Representative Office บริการทุกระดับประทับใจ K KASIKORNTHAI MTL's Life Insurance Product Profile Four Major Types of Life Insurance Product ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ Ordinary Life Insurance Products: Provide life protection for a fixed amount to an insured person Can be further classified into four sub-categories; ➤ Endowment Life Insurance: Savings type product; insured person receives an amount at the certain period of time or a designated beneficiary receives death benefits upon the death of the insured person within the insured period (e.g. Pro Saving products) Term Life Insurance: Provides temporary protection with no savings component. Claim can be made upon death within the stated term period (e.g. MRTA products) Whole Life Insurance: Provides life time protection (to the age of 90 or 99) with the death benefit paid to the beneficiary upon the death of the insured (e.g. Pro Life products) Rider: Additional coverage desired by the insured (sample of additional coverage: medical expense, accident) ■Group Life Insurance Products: Term insurance covering a group of people, usually employees of a company or members of a union or association ■Industrial Insurance Products: Life insurance with a modest amount of coverage, low premium, and no health check requirement Personal Accident: A limited life insurance designed to cover the insured in case of personal accident บริการทุกระดับประทับใจ 103 104#53K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE K-Bancassurance Products¹) Endowment Life Insurance mtlMuang Thai Life Assurance Products²) Endowment Life Insurance Pheu Sasom Sub 11/3 Guarantee Pay premium for only 3 years, but the coverage continues for 11 years ชาระเบี้ยประกันบ ณ ข Premium payment ความคุ้นตา จะไดเป็น % 4นวนเงินเอาประกันภัย ณ วันเริ่มมีผมคุ้มครองตามกรมธรรม์ หรือมูลค่าเงินกันในขณะนั้น 101% นวนเบี้ยประกันภัยที่ได้ชำระไว้ ตามแต่น้ำนานไทรกว่า Life Coverage in % of the initial sum insured, or cash surrender value at the time, or 101% of the paid premium, whichever is higher. 300% 200% หยุดป่ะเบี้ยประกันภัย 100% Stop premium at the beginning of policy year payment รา 0 1 2 4 5 6 7 8 9 10 11 End of policy year เป็นจ่ายสิน Cash bonus --- รับเป็นว่าเป็น 35% ณ สิ้นปีกรมธรรม์ ทุกๆปีกรมธรรม์ ยกเว้นในปีกรมธรรม์ที่ครบกำหนดสัญญา ===== Receive cash bonus at 3% at the end of policy years Except at the end of policy maturity สราญญา 309% 300 านวนเงินเอาประกันภัย 101 วนเบี้ยประกันภัยที่ได้ชำระไว้ Maturity benefit is 309% of the initial sum insured or 101% of the paid premium, whichever is higher. Muang Thai Smart Linked Pro 10/1 (Global) Pay single premium, guarantees cash bonus every year and get an opportunity to receive upside gain from invest in global assets. End of Policy Year Premium Payment at the Beginning of Policy Year Cash Bonus 105% Life Coverage or cash surrender value at that time (whichever is higher) 00000 8910 1% 1% 1% 1% 1% 1% 1% 1% Maturity 1% Benefit Maturity 101% Dividend of any (¹) Benefit and coverage are % of the initial sum insured. In case the benefit amount and coverage are stated incorrectly, the specified % shall apply. (2) The dividend shall be paid to the insured who is alive upon contract maturity only. However, the Company does not guarantee. maturity dividend. 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 The customers can choose to continue the coverage throughout the contract term or receive cash surrender Term Life Insurance Khumkhrong Baep Khongthi Life-Bukkhon Single Premium payment period, but the coverage can be chosen between 1 - 5 years 100%) Life Coverage Premium payment at the beginning of policy year The contract starts Coverage of Pitaksin-Home is equivalent to the reducing sum insured amount Policy Year Coverage • S Loan Amount Scenario 1: Death or total and permanent disability value End of Policy Year Premium Payment Term of installment loan Term of insurance at the Beginning of Policy Year 10 12 14 15 Scenariol Early Redemption 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. 15 Maturity K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE KASOENTHAI Back K-Bancassurance Products1) Whole Life Insurance mtl Muang Thai Life Assurance Products²) Whole Life Insurance Muang Thai Khumkhrong Talot Chip 99/1 (CB 2.25%) Life insurance with single premium, but the coverage continues to age 99 years ตัวอย่าง ความคุ้มครองชีวิต 105% ตลอดสัญญา หรือมูลค่าเวนคืน Life coverage at 105% throughout the insurance contract or surrender value Example นปีกรมธรรม์ที่ End of policy year หยุดชำระเบี้ยประกันภัย Stop premium payment เงินจ่าย บ 0 1 Cash bonus 97 Age of 97 บอย Antaining the age of 98 Artaining the age of 99 รับเงินจ่ายคืน 2-25% ของจํานวนเงินเอาประกันภัย ณ วันเริ่มมีผลคุ้มครองตามกรมธรรม์ ตั้งแต่ปีกรมธรรม์ที่ 1 - ครบอายุ 98 ปี Receive cash bonus at 2.25% of the initial sum insured. from policy year 1 to attaining the age of 98 Elite Health Plus Rider Right Coverage Medical expense coverage for both OPO and PD which is paid by actual amount Comprehensive Coverage Standard single room at any hospital or special single room at 10,000-25,000 Baht per day Long-Term Health Coverage Insurable age is until the age of 90 with coverage period until the age of 99 เงินครบสัญญา Maturity benefit 102.25% 105 Muang Thai Happy Return 99/7 Receive cash bonus every year and pay 7 years for coverage until attaining the age of 99 End of Pay Year Premium Payment at the Beginning of Paly Year Cash-Fam 100% Life Coverage or cash surrender value at that time or at of paid premium whichever is higher) Attaining the Age of 98-99 Years 1% annual cash bonus from the end of policy year 1-staining the 100% (1) Is in % of the initial sum insured. (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 Plus Rider OPD Per Time Rider/and OPD MaoChai Rider Both Riders are not required to be purchased together with IPD coverage. Be Covered to the Max Lump sum benefit based on actual expense of 5 million Baht Standard single room in any hospital Plus Additional Coverage Maternity Plus.or Well-Being Plus that covers health checkup, vaccination, dental care, and eye care which meet all of your needs. Long-Term Health Care Entry age is up to 90 years old with long-term coverage until attaining the age of 99 OPD Per Time Rider OPD 500-3,000 THB per time per day. Up to 30 times per year. Complete Coverage OPD MaoChai Rider OPD 15,000 100,000 THB per year. Up to 2 times per day for second opinion. Including telemedicine, doctor fees, diagnosis charge, medical expenses, physical therapy fee, CT Scan and MRI diagnosis, or kidney dialysis. 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 106#54K KASIKORNTHAI KBank: Other Information บริการทุกระดับประทับใจ K KASIKORNTHAI Shareholder Structure September 14, 2023 (Record Date) Shareholder Structure Top 10 Shareholders* ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % 1. THAI NVDR CO., LTD.** 14.429 2. STATE STREET EUROPE LIMITED 8.660 3. SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 5.350 4. THE BANK OF NEW YORK MELLON 3.441 Thai Shareholders 59.19% (NVDR Foreign Shareholders 40.81% 5. SOCIAL SECURITY OFFICE 2.289 6. STATE STREET BANK AND TRUST COMPANY 1.821 7. SOUTH EAST ASIA UK (TYPE A) NOMINEES LIMITED 1.379 = 14.429%**) 9. SE ASIA (TYPE B) NOMINEES LLC 1.304 9. ELECTRICITY GENERATING AUTHORITY OF THAILAND SAVING & CREDIT COOPERATIVE LIMITED 1.209 10. HSBC BANK PLC - SAUDI CENTRAL BANK SECURITIES ACCOUNT A 1.090 Note: Foreign Shareholding Limit 49% Note: The Top 10 Shareholders are based on individual accounts Other Shareholders Total 59.026 100.000 ** 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 107 108#55K KASIKORNTHAI Credit Ratings As of August 15, 2023 Foreign Currency KBank Local Currency/ National Long-term Outlook Subordinated Debts Long-term * Senior Unsecured Subordinated Debts Notes ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thailand Government Outlook Foreign Local Currency Currency S&P's BBB¹) BBB¹) N/A N/A N/A Stable¹) BBB+ A- Stable Moody's Baa1 Baa1 Ba12) Baa1 N/A Stable Baa1 Baa1 Stable Fitch BBB BBB BB+ AA+ (tha) AA-(tha) Stable BBB+ BBB+ Stable Note: * Moody's: Foreign Currency Long-term Deposit Rating; S&P's: Long-term Counterparty Credit Rating; Fitch Ratings: Foreign Currency Long-term Issuer Default Rating 1) March 21, 2022: S&P's downgraded long-term credit ratings of 4 Thai banks, including KBank, as systemic risks have increased for banks operating in Thailand. S&P's downgraded long-term credit rating of KBank from BBB+ to BBB. However, S&P"s upgraded outlook of their credit ratings to stable from negative as it views their credit ratings would be stable in next 1-2 years 2) November 7, 2022: Moody's downgraded the Baseline Credit Assessments (BCAs) of two Thai banks, including KBank, to baa2 from baa1, reflecting the structural challenges to their asset quality and profitability that are exacerbated by the slow economic recovery in Thailand. Moody's also downgraded KBank's foreign-currency subordinate MTN program rating to Ba1 from Baa3 and its foreign-currency preferred stock non-cumulative MTN program rating to Ba2 from Ba1. K KASIKORNTHAI Organization Chart Auditor Corporate Secretary Corporate Secretariat Division บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Shareholders Board of Directors Advisory Council to the Board of Directors Legal Adviser Credit and Investment Screening Committee Corporate Governance Committee Human Resources and Remuneration Committee Risk Oversight Committee Management Committee Audit Division Audit Committee 109 Private Bank Biz Biz in Overseas Service Fulfillment Risk & Resources Mgmt. Corporate Strategy & Analytics 1. Corporate Strategy and Innovation Division 2. Data and Analytics Division 3. Credit Products Business Division Product Management 4. Transaction Banking Business Division Channel & Marketing Management 6. Integrated Channels Business Division 5. Wealth Management and Bancassurance Division 7. Segment and Marketing Management Division Sales & Service 8. Distribution Network Division 9. Corporate Business Division 10. Private Banking Group Capital Markets Biz 11. Capital Markets Business Division 12. Investment Banking Business Division บริการทุกระดับประทับใจ 13. World Business Group 14. Customer and Enterprise Service Fulfillment Division 15. Enterprise Risk Mgmt. Division 16. Finance and Control Division 17. Human Resource Division Note: Effective on 1 November 2023 110#56K KASIKORNTHAI Board of Directors Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■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) ⚫ Dr. Pipatpong Poshyanonda (President) ⚫Mr. Chongrak Rattanapian (President) ⚫ Mr. Rungruang Sukkirdkijpiboon (President) Non-Executive Directors (7) ⚫ Ms. Sujitpan Lamsam • (Vice Chairperson) Sqn.Ldr. Nalinee Paiboon, M.D. (Chairperson of the Corporate Governance Committee) • Mr. Saravoot Yoovidhya • Mr. Kalin Sarasin (Chairman of the Risk Oversight Committee) • Mr. Sara Lamsam ⚫ Ms. Chonchanum Soonthornsaratoon (Legal Adviser) • Mr. Suroj Lamsam Independent Directors (6) ⚫ Ms. Kobkarn Wattanavrangkul (Chairperson of the Board) • Mr. Wiboon Khusakul ⚫ Ms. Suphajee Suthumpun (Chairperson of the Human Resources and Remuneration Committee) • Mr. Chanin Donavanik ⚫ Ms. Jainnisa Kuvinichkul Chakrabandhu Na Ayudhya ⚫ Ms. Kaisri Nuengsigkapian (Chairperson of the Audit Committee) Note: More information on the Board of Directors biographies can be found on our website at https://www.kasikornbank.com/EN/about/Pages/board-of-directors.aspx บริการทุกระดับประทับใจ K KASIKORNTHAI Sustainable Development Framework and Policy ASPIRATIONS SD FRAMEWORK GOAL COMMITMENT SD POLICY MATERIAL AREA Environment Bank of Sustainability ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Be an ESG Leader among Banks in Southeast Asia Ensuring environmental stewardship towards a net zero-carbon society We are committed to preserving the environment and reducing the impact of climate change. 1. Committing to becoming Net Zero in our own operations by 2030 2. Committing to reducing greenhouse gas emissions in our financed portfolio in line with Thailand's aspirations; reducing greenhouse gas emissions in significantly impacted sectors, both in terms of greenhouse gas emission volume and the proportion of loans extended to each sector; and accelerating this journey where possible 3. Being the leader in innovative "Green Finance" in Thailand 4. Providing services beyond financial solutions to support decarbonization in Thailand ⚫ GREEN OPERATIONS ⚫ SUSTAINABLE FINANCE Society Being a responsible corporate citizen to create a sustainable society We are committed to developing strong relationships with employees and society to better livelihoods and increase prosperity. STAKEHOLDER ENGAGEMENT 5. Ensuring financial inclusion and promoting financial literacy 6. Safeguarding customer data security and privacy 7. Ensuring the "Best Place to Work, Learn and Lead" by embedding Green DNA and creating future-ready workforce 8. Respecting for human rights and diversity 9. Promoting the development of youth potential as well as the pursuit of environmental, public and social activities ⚫ FINANCIAL INCLUSION and FINANCIAL/CYBER LITERACY ⚫ RESPECT TO HUMAN RIGHTS ⚫ CUSTOMER DATA SECURITY AND PRIVACY Governance / Economy Being an accountable bank to create sustainable profitability We are committed to strong ESG principles to be a responsible and accountable bank 10. Ensuring business operations under good corporate governance practices and delivering services to customers with fairness 11. Adhering to customer centricity by initiating financial innovations that meet every aspect of customers' needs 12. Ensuring efficient risk management focusing on environmental, social, and governance (ESG) issues ⚫ ESG RISK MANAGEMENT AND COMPLIANCE PARISCOS CORES CAP บริการทุกระดับประทับใจ 111 112#57K KASIKORNTHAI KBank Sustainable Development Journey Bank of Sustainability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK conducts business with the principles of a Bank of Sustainability, supported by good corporate governance principles, as well as appropriate risk and cost management. We strive to balance economic, social, and environmental dimensions to achieve goals and create sustainable long-term returns. The philosophy of sustainable development is instilled in all our operations as part of our Green DNA, ensuring maximum benefit for all stakeholders and paving the way for sustainable growth. KBank Sustainable Development Journey CSR after process CSR in process SD Policy Human Right Policy BOT & TBA Responsible Lending 2010 2012 SD Report 2014 SD Policy ESG credit policy Net Zero Commitment Decarbonization PCAF 2016 2019 2020 2021 Human Right Due Diligence Carbon Neutral Scenario Analysis UN PRB TCFD* UN PRI Pride of KBank 2022 UN Global Compact Net Zero INTERNATIONAL = Bloomberg 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 five consecutive years (2019-present) A member of the FSTE4Good Emerging Index for six consecutive years (2016-present) KBank's Leadership Level rating is FTSE4Good MSCI at AA for its ESG performance among emerging market banking sector peers +CDP A LIST 2022 CLIMATE Dow Jones The first Thai commercial bank with CDP A List (Leadership Level) in Climate Change, assessed by the Carbon Disclosure Project (CDP) The first and only commercial bank in Thailand and ASEAN selected as a Sustainability Indices member of the DJSI World Index and DJSI Emerging Markets Index for seven consecutive years (2016- present) Top 1% 86/100 KBank was ranked in the top 5% of the S&P Global ESG Score 2022 for the banking industry with score of 86/100 in the S&P Corporate Sustainability Assessments 2022 NATIONAL THS SUSTAINABILITY INVESTMENT 2022 ESG100 Level rating is "AAA" of SET ESG Rating 2023 Included in Thailand Sustainability Investment (THSI) for seven years (2015, 2017-2022) carton ESG 100 certificate 2022 (Certified by Thaipat Institute) BEST An Excellence award under The Low LCSB Carbon and Sustainable Business Index (LCSI) award (2021-2022) Sustainability Disclosure Award 2022 granted by Thaipat Institute The first and only commercial bank in Thailand granted Carbon Neutral Certification (2018-2022) SET Sustainability Awards granted by the Stock Exchange of Thailand - Best in Sustainability Awards (2022) and Highly Commended in Sustainability Awards for three years (2018-2019,2021). *For more information on KBank Task Force on Climate-related Financial Disclosures (TCFD), please see our Sustainability Report or visit our website at www.kasikornbank.com บริการทุกระดับประทับใจ 113 K KASIKORNTHAI KBank Net Zero Commitment Net Zero in OUR OWN OPERATIONS (Scope 1 & 2) by 2030 Net Zero in OUR FINANCED PORTFOLIO (Scope 3) In Line With Thailand's Aspirations*, Accelerating This Journey Where Possible NET ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Allocation at least 100-200 Billion Baht In Sustainable Financing and Investment By 2030 Commitment Supporting Customers In the Transition to A Net Zero Economy Thailand's ambition at COP26: 2050 carbon neutrality and 2065 Net Zero GHG Emission KBank's Board of Directors has resolved to announced the Bank's Net Zero Commitment on 29 October 2021, as follows: > KBank aims to empower every customer's life and business. We support our customers in the transition to a net zero economy. Sustainability is deeply ingrained in how we serve our customers and manage our operations. A We are committed to supporting Thailand and our clients in regional economies on their decarbonization journeys. We will contribute to the global effort to transition to net zero emission by 2050* and will align with the Paris Agreement goals. We are committed to be the leading sustainable bank in Thailand, allocating at least Baht 100-200 billion in sustainable financing and investment by 2030 and pioneering green banking products. We commit to becoming net zero in our own operations (Scope 1, 2) by 2030. We commit to achieving net zero in our financed portfolio in line with Thailand's aspirations, accelerating this journey where possible. We will continually assess opportunities to take earlier actions as the technology, regulatory environment and external context evolves. * Net zero emission by 2050 is the global effort to transition to net zero emission, aligning with the Paris Agreement goals. However, KBank commit to achieving net zero in our financed portfolio in line with Thailand's aspirations, accelerating this journey where possible. บริการทุกระดับประทับใจ 114#58K KASIKORNTHAI Environmental Aspect (1/2) GOAL Ensuring environmental stewardship towards a net zero society ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Commitment We are committed to preserving the environment and reducing the impact of climate change Green operations Material Areas and Targets Target: Transition to Net Zero in Our Own Operations (Scope 1&2) by 2030 Target -4.2% -8.4% -12.6% -16.8% -21% Net Zero (Ton CO2e) 2020 2021 2022 2023 Note: Baseline year 2020; Align with 1.5 degrees scenario. 2024 2025 2030 KBank Decarbonization Pathway in Our Own Operations (Scope 1&2) 97,785 90,172.91 (-7.79%) 77,251 (-21.00%) 81,402.17 (-16.75%) This target is considered to align with SBTi. 2030 2025 Net Zero in our own operations (Scope 1&2) 21% reduction of GHG Emissions (Cumulative from base year 2020) *4.2% emission reduction per year *Baseline year 2020 Scope 1 Net Zero (Scope 1 and 2) 2020 2021 2022 2025 2030 Scope 2 (Base year) • Actual Target *2020-2022: KBank Actual Emission Note: 2023 onwards is forecasted based on minimum guideline align with 1.5 degrees scenario Emission from fossil fuel burned from KBank own car fleet EV Fleet Conversion Adopt lower emission factor fuel (E85, B20) Emission incurred from electricity consumption Consumed more renewable energy (Solar rooftop installation) Energy Conservation Measures (Building Retrofit, BMIS, A/C) Space Optimization Renewable Energy Certificates (REC) Residual emission Carbon Removal Reforestation Carbon Capture Utilization Storage (CCUS) Sample of Performance Own operations (Scope 1& 2): GHG Emission Reduction (Baseline year 2020) > 2021 Target: -4.2% > 2021 Performance: -7.79% > 2022 Target: -8.4% > 2022 Performance: -16.75% Enhance Environmental Management: - Environment and energy conservation policy - Environmental management system development Green building designing Green process designing Green mobility Green facility management: > Lighting system management > Clean energy management > Water use management > Green waste management Raise employees' awareness on energy and environmental conservation and adopt green behavior บริการทุกระดับประทับใจ 115 K KASIKORNTHAI Environmental Aspect (2/2) GOAL ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Ensuring environmental stewardship towards a net zero-carbon society Commitment We are committed to preserving the environment and reducing the impact of climate change Material Areas and Targets Sustainable Finance Targets: Transition to Net Zero in our finance portfolio (Scope 3) in line with Thailand's Aspiration*, accelerating this journey where possible • ➤ Decarbonization Pathway in our Financed Portfolio (Scope 3) Minimize lending to projects with high GHG emissions Increase financial support to environmentally friendly projects or projects with no or low GHG emissions Sample of Performance Sector Prioritization for Glidepath MATERIALITY ASSESSMENT 1 Calculating the greenhouse gas emissions of each industry in the Bank's portfolio as a proportion of loans to different industries to rank those industries with significant greenhouse gas emissions. FEASIBILITY ASSESSMENT 2 Studying the assessment methodology of each industry, which depends on the availability of data used in the calculation and various reference scenarios (Availability of Methodology) and Availability of Counterparty Data. ABILITY TO DELIVER ASSESSMENT 3 Consider the ability to change each industry (Decarbonization Trend), Complexity to Execute, and Local Context to be used as factors in ranking the industry. Targets: Allocate at Least Bt100-200bn in Sustainable Financing and Investment by 2030 * Thailand's ambition at COP26: . 2050 carbon neutrality and 2065 Net Zero GHG Emission Sector Prioritization for Portfolio decarbonization management The Bank assessed and formulated a Sector Decarbonization Strategy ➤ Y2022 - 3 sectors: Power Generations, Oil and gas, and Coal ➤ Y2023-4 sectors: Power Generations, Oil and gas, Coal, and Cement Sustainable Financing and Investment: ► 2022 Performance: Bt26n ➤ 2023 Targets: Bt25bn ➤1H23 Performance: Bt19bn บริการทุกระดับประทับใจ 116#59K KASIKORNTHAI Social Aspect: GOAL Commitment Being a responsible corporate citizen to create a sustainable society ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK We are committed to developing strong relationships with employees and society to better livelihoods and increase prosperity. Material Areas and Targets Financial inclusion and financial/cyber literacy Targets: 1) Financial Literacy for the underprivileged to reach 52,500 persons in Y2023 2) Increase cyber literacy knowledge and awareness to reach 10 million persons in Y2023 Customer data security and privacy Protect customer assets, provide secure services, and ensure care & timely responses as follows: - Deliver secure and efficient services and workplace - Strengthen third party risk management - Expand detection and responses Sample of Performance (as of 2022) Financial Literacy for the underprivileged reached 51,001 persons Cyber literacy campaign reached 10.8 million people Number of employee volunteer hours: 216,886 hours Number of beneficiaries from CSR activities: 988,287 persons Employee engagement score: 77% Female in leadership position: 62% Internal employee filled in rate: 85% Respect to human rights: Human rights risk assessment in all business activities: 100% of KBank and joint ventures of KBank Respect for Human rights Respect to human rights Human rights risk assessment in all business activities: 100% of KBank จงอย่า n 151Adu 15THA PAYLATER บริการทุกระดับประทับใจ ช้อปตอนน จ่ายตอนนน K KASIKORNTHAI Governance GOAL Commitment Being an accountable bank to create sustainable profitability ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK We are committed to strong ESG principles to be a responsible and accountable bank Material Area and Targets ESG Risk Management and Compliance ESG credit: 100% of Project Finance requests and medium enterprises (and above) must be processed through the ESG credit assessment Sample of Performance In 2022, 100% of project finance and above medium- sized entrepreneurs passed ESG risk assessment worth Bt514,652mn Corporate Governance and Anti-Corruption Work 117 Corporate Governance Reviewing KBank practices under BOT, SEC, SET, Thai IOD, ASEAN CG Scorecard, and Dow Jones Sustainability Indices (DJSI) criteria ASEAN CORPORATE GOVERNANCE Implementing a strategic plan for CG activities to enhance compliance by directors, executives, and staff with CG principles, Code of Conduct, and Anti-Corruption Policy through Organizing training courses and continually communicating via e-Learning system Communicating with companies within KASIKORNBANK FINANCIAL CONGLOMERATE to ensure consistency of operations Reviewing the Statement of Business Conduct, the Code of Conduct, the Statement of CG Principles, CG Policy, and related Charters; keeping them up-to-date in accordance with Ongoing business operations and Bank Sustainability Compliance with laws, international practices, and best practices as prescribed by regulatory agencies and competent agencies Conducting phishing drill exercises internally on a continual basis to build awareness and stay ahead of cyber threats • . Anti-Corruption KBank, KAsset, and KSecurities co-signed a declaration of the "Thai Private Sector Collective Action Against Corruption (CAC)" project and have been recognized as CAC certified companies since 2013. BOD approved the revised Anti-Corruption Policy in compliance with the assessment and certification criteria for anti-corruption measures of the Thai Private Sector Collective Action against Corruption. Internal Communication on Anti-Corruption Policy to ensure proper practices within the organization by Organizing training courses for executives and employees Communicating with all directors, executives and employees via KBank electronic networks and website Communicating with suppliers on operational guidelines, including Communication of supplier manual on the Code of Conduct related to business ethics, human and labor rights, occupational safety and health, and environment, as well as the Anti-Corruption Policy and the Conflicts of Interest Prevention Policy for their acknowledgment and compliance. The Bank also encouraged suppliers to participate in the anti-corruption network. Communication of the No Gift Policy regardless of 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. Additionally, suppliers are encouraged to comply with Anti- Corruption Policy and practices. Provision of various channels to receive information, complaints and whistle-blowing บริการทุกระดับประทับใจ 118#60K KASIKORNTHAI ESG Risk Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank has established credit policies and operations that manifest ESG responsibility with an operational structure divided into management and transaction levels, as follows: Risk Oversight Committee Board of Directors At the management level Lending activities are structured so as to demonstrate environmental and social responsibility as follows Corporate Governance Committee Credit Risk Management Sub-committee Sustainable Development 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 and monitoring sustainable development operations Sustainable Development Sub-committee . . Considering and approving sustainable development frameworks and action plans Considering and endorsing policies, goals, strategies, and targets related to sustainable development performance Overseeing and monitoring sustainable development operations Considering sustainable development communications both within and outside KBank, and information disclosure in compliance with domestic and global sustainability frameworks and standards ➤ Credit Risk Management Sub-committee Determining ESG credit policy and processes, and updating such policy and processes Business units . Screening environmental and social risks of project financing and commercial credits to be supported Ensuring and monitoring projects' compliance with regulations/ environmental and social management plan ➤ Monitoring and Controlling Functions • Determining environmental and social management as agreed Reporting to Corporate Governance Committee บริการทุกระดับประทับใจ K KASIKORNTHAI ESG Risk Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank has established credit policies and operations that manifest ESG responsibility with an operational structure divided into management and transaction levels, as follows: Exclusion List Offences relating to gambling At the transaction level The Bank ensures that lending transactions violate neither the law nor social ethics Offences relating to human tracfficking Offences relating to narcotics Offences relating to embezzlement Offences relating to exploitation of Offences relating to terrorism natural resources Examples of Exclusion List: 。 Offences related to illegal activities or activities that risk violation of laws including domestic environmental laws and international agreements, for example: ■ Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) ■ Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal or related rules and regulations, etc. 。 Credits related to destroying or encroaching upon important ecosystems, such as mangrove forests and conservation areas, for example: ■ Natural parks, conservation areas and animal sanctuaries per related public notifications UNESCO World Heritage Sites, etc. " 。 Credits for hydropower generation from dams that generate significant impacts on the environment and society, without management measures and work plans in accordance with the Equator Principles and without support from international financial institutions for development or foreign financial institutions that have accepted the Equator Principles 。 Stop financing project of new coal-fired power generation (100% discharge existing loans on coal-fired power plants by 2030) Sector - Specific Guidelines KBank has developed the loan consideration guidelines for specific industrial sectors in accordance with environmental and social impacts by including ESG factors in credit consideration for each industry in addition to other factors, to ensure that risk management at the credit portfolio and transaction levels comply with the target to achieve a low-carbon economy, especially for the industries with risks of environmental and social impacts, for example: 。 Agricultural Industry: No support for business operators that encroach upon or destroy forest areas, or conduct slash-and-burn farming practices 。 Fishery: No support businesses conducting unlawful operations, or Unregulated Fishing (IUU Fishing), or catching restricted animals or animals included in CITES 。 Electricity Generation: Support renewable energy plants, e.g. solar and wind, power plants using other fuels, e.g. biomass and waste etc. บริการทุกระดับประทับใจ 119 120#61K KASIKORNTHAI Public Recognition Highlight: 2022-9M23 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2022 - Top Investment Houses in Asian Local Currency Bond THE Asset DIGITAL BANKER a - 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, Rank 1) - Top Sellside Firm in the Secondary Market, Corporate Bonds (THB, Rank3) -Triple A Best Private Bank and Triple A Best Private Bank - HNWIS - Best Retail Bank for Digital CX - Thailand Best Private Bank for Digital CX - Thailand - Best Digital CX in Banking - Social Channels (KASIKORN LINE) - Best Retail Bank - Thailand Best Bond House in Thailand Top Underwriter Best Bond House ThaiBMA - Deal of the Year -Most Innovative Deal - Corporate ESG Bond of the Year THE ASIAN BANKER CDP Leadership Level (CDP A List) 2022 CLIMATE - Outstanding Interactive Chatbot Service by a Retail Bank - Best Bond Deal for Retail Investors in Southeast Asia 2022 - Best Local Currency Bond Deal of the Year (Thailand) 2022 - Best Sustainability-Linked Transaction of the Year 2022 Best Retail Bank in Thailand THE ASIAN BANKER - Best Chatbot / Voice Banking Initiative Application in Thailand - Best SME Bank in Thailand RETAIL BANKER - Best Strategic Partnership Best In-Person (or virtual) Customer Event Most Dynamic Third-Party Collaboration Highly Commended- Best App for Customer Experience - Highly Commended- Best Content Marketing Program Highly Commended- Excellence in SME Banking Dow Jones - Sustainability Award - DJSI Sustainability Indices World Index and DJSI Emerging Markets Index 86100 -the top 5% of the S&P Global ESG Score 2022 for the banking industry - Winner - Best Bank for PRIVATE BANKER ***Sustainability and ESG Leadership - Best Contact Center of the Year TCCTA IDC MORNINGSTAR Future Enterprise of the Year Best Fund House - Domestic Fixed Income (KAsset) - Highly Commended- Excellence in Omni-Channel Integration (K CHECK ID) - Highly Commended- Trailblazing Use of Al or Machine Learning in Financial Services (Digital Commercial Loan for Shopee project) - Highly Commended- Trailblazing Use of Al or Machine Learning in Financial Services (KASIKORN LINE) - Highly Commended- Best Use of Big Data in Customer Strategy (KASIKORN LINE) Highly Commended- Excellence in Loan Origination Process (KASIKORN LINE) ASIAN PRIVATE BANKER Best for Mass Affluence/HNW in Thailand Business+ HR Asia BANKING FINANCE IDZ C - 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 - Best Companies to Work for in Asia-Thailand region - HR Leader of the Year (Gold Level) - Excellence in HR Change Management (Gold Level) - Excellence in Workforce Flexibility (Gold Level) from the "Work That FITS" project Mobile Banking & Payment Initiative of the Year - Thailand Human - Strategic Partnership of the Year - Thailand -Thailand Domestic Cash Management Bank of the Year Resources UX Design Awards in the category of Product for MAKE by KBank -Red Dot Award: Brands & Communication Design in the category of Interface & User Experience Design (for Mobile User Interfaces) for KhunThong social chatbot red fot Note: CX Customer Experience РШТ Employee Experience Award in the category of Most Innovative and Sustainable Office Design Best Private Bank for Digital Marketing & Communication, Asia RETAIL BANKER INTERNATIONAL GLOBAL FINANCE Asset * IFR ASIA INTERNATIONAL BUSINESS MAGAZINE ASIAMONEY BrandAge 9M23 - Best Retail Bank in Thailand a - Best Bond House in Thailand FinanceAsia - Best DCM House in Thailand -Most Recommended Retail Bank in Thailand Best Frictionless Customer Experience Initiative (YouTrip) - Best Mobile Banking Service (K PLUS) - BankQuality Ranking - Most Selected Main Bank in Thailand - Best Digital Credit Evaluation Initiative - Best Frictionless Customer Experience Initiative Highly Commended - Best Retail Bank - Thailand - Highly Commended - Best Mobile Wallet Initiative (YouTrip) Best Open Banking Initiative (K LINE) - Most Dynamic Third-Party Collaboration (K LINE) - Highly Commended - Best Loan Offering (K LINE) - Best Mobile Wallet Initiative (Highly Commended) The World's Best Trade Finance Providers 2023 - SET ESG Rating 2023 "AAA" BTS Group Holding's Baht 11 billion Multi-tranche Sustainability-linked Debentures - Project Finance House of the Year - Renewable Energy Deal of the Year - Rooftop Solar Transport Deal of the Year - Highway - Digital Private Bank of the Year ESG Bond: BTS Group's Baht 20 billion Sustainability-linked Bonds - Best Private Bank Thailand - Best for High Net Worth in Thailand - Thailand's Most Admired Brand: Mobile Banking PшM - Best Private Bank for Building Client Communities, Asia mongoDB. THE DIGITAL BANKER -2023 MongoDB APAC Innovation Award - Customer Focused (MAKE by KBank) - Best Retail Bank for Digital CX in Thailand - Outstanding Digital CX in FX Services (YouTrip) Best Private Bank for Digital CX in Thailand - Best Private Bank - Thailand REFINITIV บริการทุกระดับประทับใจ - Best THB Interest Rates Swap Contributor (Runner-up) - Best THB Local Cross Currency Contributor (Runner-up). K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Banking System and Regulations Update 121 บริการทุกระดับประทับใจ 122#62K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Commercial Banks and Specialized Financial Institutions (SFIs) Market Share (% of Total Loans) Market Share (% of Total Deposits) 6 SFIs Bt Billion Bt Billion 24,000 21,672 22,274 22,341 souilu 20,000 17,004 17,765 18,869 19,358 20,301 24,000 21,880 20,936 22,793 22,732 20,000 30.8% 31.0% 16,843 17,707 18,463 19,178 EXIM 16,000 30.4% 30.2% 30.4% 16,000 29.9% 30.0% 29.9% 26.5% 26.7% 26.4% 26.7% 12,000 12,000 26.7% 26.8% 27.0% 26.8% | 8,000 8,000 13 Commercial Banks* Bangkok Bank sumang-aine ธนาคารกสิกรไทย 4,000 0 70.1% 70.1% 70.0% 69.6% 69.8% 69.6% 69.2% 69.0% 2016 2017 2018 2019 2020 2021 2022 Aug-23 Commercial Banks ■SFIs 4,000 0 73.3% 73.2% 73.0% 73.2% 73.5% 73.3% 73.6% 73.3% 2016 2017 2018 2019 2020 2021 2022 Aug-23 Commercial Banks ■SFIs Inow SCB Ub O CIMB O LH BANK Standard Chartered S ICBC Net Loans Deposits Bt Billion 16,000 14,000 12,000 I 10,000 I 8,000 KIATHAKIN BANK 10,470 10,602 11,061 11,633 11,859 22.8% 22.9% 22.8% 22.1% 22.7% 11.3% 12.3% 12.5% 12.9% 13.6% 12,579 13,258 13,618 13,721 11.2% 12.5% 12.6 % ttb 14,000 21.9% 10.0% 9.7% 9... 12.4% 12.3% 12.4% BAY 12,000 12.8% KBank10,000 6.7% 16.7% Bt Billion 18.000 ■Other 16,000 14,472 15,032 15,658 15,495 Other 11,196 11,359 12,099 12,578 13,057 10.5% 12.0% 11.9% ttb 20.2% 8.9% 8.9% 8.9% 21.5% 21.5% 6,000 4,000 2,000 18.1% 16.4% 15.8% 15.7% 15.8 % 16.9% 18.1% 17.3% 17.3% ■KTB 8,000 ■BBL 6,000 ■SCB 21.2% 20.6% 9.7% 9.4% 15.3% 15.8% 19.1% 17.4% 20.6% 11.9% 10.9% 11.3% 15.8% 15.8% 15.5% 17.1% 16.5% 16.2% 12.6% 11.7% 11.4% 11.7% 17.4% 17.2% BAY KBank 17.1% 16.2% 17.0% 17.4% 16.6% 16.7% KTB ■BBL 4,000 18.0% 2,000 0 *The integration of TMB Bank and Thanachartbank was completed in Jul-21. I 2015 2016 2017 2018 2019 2020 2021 2022 Sep-23 0 18.2% 18.6% 18.6% 16.8% 17.8% 17.3% 17.1% 16.5% 16.8% 16.4% 16.4% 16.3% 2015 2016 2017 2018 2019 2020 2021 2022 Sep-23 17.7% 17.2% 17.7% 17.3% 17.3% SCB Note: 6 SFIs include Government Saving Bank (GSB), Government Housing Bank (GHB), Export-Import Bank of Thailand (EXIM Bank), Bank for Agriculture and Agricultural Co-operatives (BAAC), Small and Medium Enterprise Development Bank of Thailand (SME Bank), and Islamic Bank of Thailand (IBank) บริการทุกระดับประทับใจ K KASIKORNTHAI Thailand's Digital Readiness: Number of Users ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■ 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) 192.3% Penetration Mobile Internet 1) (Mobile internet numbers) 54.4% Penetration Broadband Internet 1) (No. of households using internet via broadband) 123 83.1% Penetration Social Media 2) (No. of Facebook users) Thailand e-Payment Volume: 19.5 bn transactions, +28.8% YoY Value: 318.1 trn baht, +10.2% YoY (Volume and Value) 3) Prompt Pay พร้อมเพย์ 76.3 m Million 166.2% Penetration 45.0% Penetration PromptPay 4) (Total registration) Mobile Banking 4) (No. of accounts) Internet Banking 4) (No. of accounts) 203.1% 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 2022. Denominator for fixed internet penetration is number of household. 1) As of Jun-23, 2) As of Jul-23, 3) Jan-Jul 23, 4) As of Aug-23, 5) As of Jul-23 บริการทุกระดับประทับใจ 124#63K 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 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT Consultation Paper: Repositioning Thailand's Financial Sector Digital Technology Leveraging #on Technology# and Data #o Drive #nnovation# 3 Opens: - Open Competition - Open Infrastructure - Open Data# Thai banks have been ready for more open competition, based on a level playing field approach. • Sustainability Managing #Transition #owards Sustainability Setting up data standard & disclosure requirements for financial institution's environment-related activities Tackling Thai households' indebtedness via both demand (consumers) and supply (loan providers) sides ✓ Many initiatives, including open infrastructure and open data, require amendments of laws and regulations, as well as cooperation from other authorities. ✓ More precise impact assessment is pending a clearer plan and details of the paper. Source: BOT Consultation Paper, KResearch • • . Resiliency Shifting #from #Stability #to Resiliency Players will be regulated in accordance with their risk profiles (risk proportionality) Burdensome regulations will be revised for greater flexibility While the BOT does not wish to see digital assets adopted as Means of Payment, it does not rule out those with proven stability and economic value Nonbank Financial Institutions will be evaluated and regulated according to their size and impact on the economy & financial system # บริการทุกระดับประทับใจ 125 126#64K 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 Aug 2023) 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 Up to Bt15mn 11 August 2018 - 10 August 2019 Up to Bt10mn 11 August 2019 - 10 August 2021 11 August 2021, onwards Up to Bt5mn Up to Bt1mn Deposits # of Accounts 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 124,621,176 % 98.47 Amount (Bt mn) % 3,352,795 1,778,589 1.41 4,406,596 102,803 0.08 1,533,730 31,660 0.03 1,107,704 25,762 0.02 126,559,990 100 5,257,621 15,658,446 21.41 28.14 9.79 7.07 33.58 100 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 127 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 ESG risk management. The revision become effective from 1 Jan 2022 onwards ■BCBS finalized new requirements on risk weighted asset (RWA) calculations including credit risk, operational risk, and CVA risk. The main objectives of the revision are to reduce variability in RWA across banks and jurisdictions and to balance simplicity and risk sensitivity of capital requirements Guidelines for supervision of financial groups of commercial banks related to digital asset business ■Remove the investment ceiling (3% of the capital of Thai banks) for FinTech business, as commercial banks have more experience investing in FinTech business, and regulators have guidelines to manage risks ■Allow subsidiaries of Thai banks to invest in companies related to Digital Assets (DA) business not greater than 3% of their capital, limiting new risks; DA companies with good governance, supervision of risks, and protection of customers are exempted from this investment ceiling ■Capital treatment: full deduction of DA holding exposure to CET1 Financial Sector Master Plan III (FSMP III) 22 Mar 2016: Cabinet approved FSMP III (2016-2020), with aims to establish strategic framework for continuous financial sector development and ensure challenges arising from the changing environment will be effectively managed Overall: FSMP III comprises four main initiatives: 1) Promote electronic financial and payment services as well as enhance efficiency of Thai financial system; 2) Support regional trade and investment linkages; 3) Promote financial access; and 4) Develop relevant infrastructure 1Q17: BOT adopted the 'regulatory sandbox' which allowed regulatory flexibilities to be granted to financial institutions and FinTech companies to experiment with FinTech businesses with plans to grant a new license for P2P lending players or digital personal loan operators As of June-2023, 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 2022 onwards: Timeframe was specified by Thailand Federation of Accounting Professions (TFAC); TFRS 9 (Financial Instruments) has been effective since 2020 with the amendment for IBOR reform during 2020-2022. TFRS 17 (Insurance Contracts) will be effective in 2025 ➤ Expected impacts on Thai banks: New benchmark rate of IBOR reform is treated as repriced rate in TFRS9 EIR calculation, hedge accounting and valuation. Existing hedge strategies can be continued with day1 impact in PL or OCI depending on classification. TFRS 17 will delay revenue recognition over coverage period; previous revenue in retained earning will be reclassified to liability on transition. ➤ Expected impacts on KBank: For TFRS 9, impacts from IBOR reform are limited while TFRS 17 impact is still under investigation. Note: D-SIBS = Domestic Systemically Important Banks CVA Credit Valuation Adjustment, Source: The Bank of Thailand and KResearch บริการทุกระดับประทับใจ 128#65ธนาคารกสิกรไทย K KASIKORNTHAI Basel III: BOT Minimum Capital Requirement 开泰银行 KASIKORNBANK Transitional Arrangement for Capital Requirement All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 5.125% (4.5%+0.625%) 5.75% (4.5%+1.25%) 6.375% (4.5% +1.875%) 7.5% 8.0% 8.0% 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%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) Tier 1: Min. Tier 1 Ratio 6.625% (after conservation buffer and D-SIBS buffer) (6.0%+0.625%) 7.25% (6.0%+1.25%) 7.875% (6.0%+1.875%) 9.0% (6.0% +2.5% +0.5%) 9.5% CAR: Min. Total Capital Ratio (after conservation buffer and D-SIBS buffer) 9.125% (8.5%+0.625%) 9.75% (8.5%+1.25%) 10.375% (8.5%+1.875%) 11.5% (8.5%+2.5% +0.5%) 12.0% (8.5% +2.5% +1%) 12.0% (8.5% +2.5% +1%) (6.0% +2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0% +2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) Countercyclical Buffer 0.0-2.5% 0.0-2.5% (Subject to the BOT consideration)*** Leverage Ratio Parallel run period (Tier 1/Exposure) ≥ 3% Tentative effective date Liquidity Coverage Ratio (LCR)**** (Liquid Assets/Net Cash Outflows within 30 days) ≥ 100% LCR ≥ 60% LCR ≥ 70% LCR ≥ 80% LCR ≥ 90% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% LCR ≥ 100% Net Stable Funding Ratio (NSFR) (Available Stable Funding / Required Stable Funding) ≥ 100% Note: NSFR≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR≥ 100% NSFR≥ 100% NSFR ≥ 100% NSFR≥ 100% * 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 173%, 164%, and 166% as of June 2023, December 2022, and June 2022, 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 129 K KASIKORNTHAI Capital Definition Change (Consolidated) Tier 1 capital Basel II Tier 1 • Issued and paid-up share capital . • Premium on ordinary shares Legal reserve and Retained earnings • Hybrid Tier 1 (<15% of total Tier 1) • Minority interest, Preferred stock Deduction of Tier 1 Goodwill, Treasury stock, Deferred tax asset Investment in insurance (50% Tier 1 and 50% Tier 2) • Long-term subordinated debt 1 2 Common Equity Tier 1 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 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 Digital Asset Exposure Long-term sub-debt with loss absorbency feature Tier 2 capital 3 • Hybrid Tier 1 (exceeds from Tier 1 limit) General Provision • Surplus on AFS equity (45%) 1 Surplus on land & premises (70% and 50%) • General Provision Net Treasury Stock บริการทุกระดับประทับใจ 130#66K 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 Measurement Clear required factors and disclosure about fair valuation ➤ Measure insurance liability based on cash flow estimation ➤ Additional disclosure regarding risk exposure TFRS 16 (Leases) A single, on-balance sheet accounting model for lessee that is similar to current finance lease accounting. TFRS 9, TFRS 7 & TAS 32: Financial Instruments ➤Impairment is based on 3-stage classification and introduce lifetime forward-looking concept. However, no significant impact to Thai banks as adopted new BOT provisioning rule since December 2006 ➤ Unquoted equities at cost to be faired value and not able to realize capital gain/loss in profit and loss if they are faired valued through OCI ➤ Interest revenue of lending portfolio will be recognized per effective interest rate ➤ Investment in property fund, REIT, infrastructure fund and infrastructure trust established in Thailand will be classified as equity instrument. (Refer to announcement from TFAC dated 25 June 2020) TFRS 17: Insurance Contracts Insurance revenue will be based on margin, not gross premium received Expected day one loss is immediately realized while expected gain is deferred over coverage period TFRS 9 Amendments from Interest Rate Reform ➤ Replacement of IBOR with new benchmark rate is considered as continuation of existing contract and/or hedge strategies. ➤Changing rate is reflected in new EIR or hedge ineffectiveness. Note: TAS = Thai Accounting Standard; TFRS = Thai Financial Reporting Standard; TFRIC = Thai Financial Reporting Interpretations Committee OCI Other Comprehensive Income Customer loyalty program concept of income deferral for reward credit has been adopted through IFRS15 since 2019 with no significant impact. No specific accounting guideline for digital assets has been enforced; but encourage to apply from existing relevant TFRS depends on terms and condition of digital assets. * Only financial and disclosure impact to Thai Banks บริการทุกระดับประทับใจ K KASIKORNTHAI Government Policy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 131 บริการทุกระดับประทับใจ 132#67K KASIKORNTHAI Sources and Uses of Public Funds FY2024 Budget ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK FY2024 the cabinet approved budget plan on September 18, 2023. However, the budget act would be published in April 2024. Budget Planning Budget Execution Tax Revenue + Non-Tax Revenue (Bt2.79trn) + Borrowing under FY2023 Budget Act (Bt693bn) FY2023 Budget (Bt3.48trn) = General Budget (Bt2.62trn or 75%) + Expenditures for replenishment (Bt0.03rn or 1%) + Investment Budget (Bt0.71trn or 21%) + Principal Repayments (Bt0.12trn or 3%) Budget Disbursement (100% target disbursement rate + carry-over) Notes: Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year. บริการทุกระดับประทับใจ 133 K KASIKORNTHAI Government Fiscal Budget 1400 1200 1000 800 600 540 360 600 lllu 609 400 450 200 450 469 100 0 FY2018 FY2019 FY2020 FY2021 700 695 693 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■In September 2023, the Cabinet approved a draft of FY2024 budget worth Bt3.48trn, with a deficit of Bt693bn ■In April 2024, Thai parliament would approve FY2024 budget and the budget act would be effective Budget Deficit Economic Policies ■2023 Budget Act ■2024 Budget Act FY2022 FY2023 FY2024 Extra-Budget Borrowing Key Points ■FY2023 budget at Bt3.18trn with a deficit of Bt695bn ■FY2024 budget at Bt3.48trn with a deficit of Bt693bn Implementation Process FY2023 ■ Effective date: October 1, 2022 FY2023 ■Tentative effective date: April 2024 Possible Impacts/ Expected Budget ■Government spending will help maintain economic momentum ■Fiscal sustainability to remain manageable in near-term; however, continued debt creation, both from budget deficit and other borrowings, may impact long-term fiscal sustainability Note: Thai government's fiscal year (FY) begins on October 1 and ends on September 30 of following year Sources: The Ministry of Finance and KResearch (as of October 2023) บริการทุกระดับประทับใจ 134#68K KASIKORNTHAI Public Debt to GDP and Fiscal Budget Public Debt ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Budget Disbursement Rate Million Baht 11,000 10,000 9,000 8,000 7,000 6,000 Public Debt (Ihs) -% to GDP (rhs) (%) % 70 120 65 100 60 80 55 660 50 45 40 40 FY 2024 40 20 FY 2023 20.3 -FY 2022 14.2 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep ■Public debt to GDP ratio rose to 62.1% in October 2023. However, it is still under the 70% limit set under the fiscal sustainability framework ■Thai government raised the ceiling of the public debt-to-GDP ratio from 60% to 70%. The public debt to GDP is expected to rise to 61.35% in FY2024 Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO) FY24 Budget Total Budget* Bt3.18trn - General Budget Bt2.52trn - Investment Budget Bt0.66trn FY24 target Bt3.18trn (100%) Bt2.52trn (100%) Bt0.66trn (100%) 2M FY24 actual Unused FY24 Budget Bt0.64rn (20%) Bt0.60trn (24%) Bt0.04rn (6%) Bt2.54rn (80%) Bt1.92trn (76%) Bt0.62trn (94%) ■Government budget disbursement rate for 2MFY2024 is 20.3%*, down 2.4% from 22.7% in 2MFY2023 * Noted: compared with FY2023 budget for reference only as official FY2024 budget is not effective บริการทุกระดับประทับใจ 135 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 "Prosperity" 2 Competitiveness enhancement Broadening Opportunity "Sustainability" Security Development and and Equality Empowerment in Society Human Capital Reforming 3 5 Government Administration Environmentally- Friendly growth " The Goals High income country: 15,000 USD per capita by 2036 (2016 income per capita = 5,901 USD) Economic growth around 5% per year (4-5% under 12th NESDB Social and Economic Development Plan and 5% for the next three NESDB 5-Year Plans) People of all ages healthy and with lifelong learning opportunities Target Gini: <= 0.36 (inequality measurement: lower figure indicates better income distribution) Forest area as percentage of total land area more than 40% Fully implement Digital Government Services Enhance Corruption Perceptions Index beyond 50Plus (the lower tier of least corrupt countries) National Strategy Committee: Chairman is the Prime Minister; Secretary is NESDB Secretary-General 34 committee members First 17 committee members are high-ranking state officials and leading industry experts such as the Prime Minister, members of the top brass, National Police Chief, Permanent Secretary for Defense, President of the House of Representatives, Chairman of the Federation of Thai Industries, President of the National Farmers Council, President of the Thai Bankers' Association, Chairman of the Thai Chamber of Commerce, etc. Second 17 Committee members are experts from various fields 2017 2022 T 2027 2032 2036 Jun17: NLA passed the law Aug17: Cabinet appointed committees. Jun18: Cabinet endorsed the plan Jul18: NLA approved the plan The National Economic and Social Development Plan (5-year plan) aligned with the 20-year National Strategy The 12th National Economic and Social Development Plan (2017-2021) The 13th National Economic and Social The 14th National Economic and Social Development Plan (2022-2026) Development Plan (2027-2031) บริการทุกระดับประทับใจ The 15th National Economic and Social Development Plan (2032-2036) 136#69K KASIKORNTHAI Long-term Policies of the New Government ■ Transport Infrastructure Development Plan: ➤ Investing in the country's transportation infrastructure, including roads, water, rail, and air, to expand Thailand's trade and opportunities ■ Eastern Economic Corridor (EEC): Area for facilitating and attracting investment in 12 innovative target industries, such as automation and robotics, to transform Thailand into Thailand 4.0 ■ Economy: ➤ Employing the principle of "Market-driven, innovation-supported, and income-enhancing" to support the agricultural sector's efficiency and productivity ■ BOI Measures for Supporting Private Investment: ➤ Promoting new economies such as the digital economy and advanced technology industries to enhance the country's competitive advantage ➤ Extending special economic zones and the economy in all four regions to decentralize economic activities to various provinces ■ 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 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 operationalized through sectoral work plans and implementation and monitored through the AEC 2025 Monitoring and Evaluation Framework ■Free Trade Area (FTA): 14 FTAs (18 countries) have signed with ASEAN+3 (China, Japan, and Korea), India, Australia, New Zealand, Peru, Chile and the Regional Comprehensive Economic Partnership (RCEP); In progress with European Union (27 countries), United Arab Emirates (UAE), Canada, Turkey, Sri Lanka, and in study with Comprehensive and Progressive Agreement of Trans-Pacific Partnership (CPTPP), Gulf Cooperation Council (GCC), African Continental Free Trade Agreement (AfCFTA) ■Aging Society: ➤ Monthly pension payments for the elderly ➤ Mandatory retirement age for government and state enterprise officials might be extended from 60 to 63, effective in 2024 ■Constitution: Thai government committee plans referendum on constitutional amendments Sources: Newspaper and KResearch (as of October 2023) บริการทุกระดับประทับใจ K KASIKORNTHAI Short-term Policies of the New Government ■Government Budget: ➤ Fiscal budget deficit in FY2024: Plan is for Bt693bn deficit to provide additional supports to stimulate Thai economic recovery ■Short-term Stimuli: ➤ Debt moratoriums for farmers and SMEs: (effective) - Farmers: debt suspension for 2.7 million farmers financed by the Bank for Agriculture and Agricultural Cooperatives (BAAC) starting October 1, 2023 (government support interest burden of Bt11bn annually) ➤ Debt relief for other groups, including teachers, police officers, and people: (planning) ➤ Raising daily minimum wage to Bt600 by 2027: (planning) - Expected to hike Bt400 from an average Bt337 in 2024 - To Bt600 by 2027 ➤ Increase salary for workers with a bachelor's degree to Bt25,000 (planning) ■ Short-term Stimuli (continued): ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ➤ Projects to boost domestic consumption: Bt10,000 digital wallet planned for 50 million Thais, worth Bt500bn or 2.9% of GDP: The government estimates that there are 50 million people eligible for the handout, who either earn less than Bt70,000 a month or have less than Bt500,000 in their savings accounts The government will propose Bt500bn loan bill to fund the project The project is expected to launch in 1H24 E-Refund: Thai people can get a maximum Bt50,000 tax deduction for spending on goods and services (expected to start in January 2024) > Projects to boost travel: Supporting traveling sector: Implement visa-free entry for foreign tourists Chinese and Kazakhstani tourists will be granted a temporary visa exemption for a 30-day stay (between September 25, 2023 - February 29, 2024) Russian tourists temporary stays extended from 30 to 90 days (between November 1, 2023 - April 30, 2024) Taiwanese and Indian tourists will be granted a temporary visa exemption for a 30-day stay (during November 10, 2023 - May 10, 2024) > Measures to help people with rising living costs: Commerce ministry asked manufacturers to reduce prices on 150,000 daily products (from October 2, 2023 to the end of 2023) Sources: Newspaper and KResearch (as of November 2023) บริการทุกระดับประทับใจ 137 138#70K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Ongoing Government Measures to Assist Cost of Living Measures Household Assistance Energy Prices 39 3222222 25 19 Details Train/Bus/Skytrain and Subway Fares: Bt750 monthly allowance for welfare card holders to use for public transportation Necessity Goods: A Bt300 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 Bt80 discount per three months in welfare card to purchasing cooking gas Allowances (e-Money): Depending on measure, which can be withdrawed from an ATM, such as Elderly welfare allowance (Bt50-100) and Disable allowance (Bt200) Water and electricity price: Reduce water and electricity bills and refund meter fees Diesel Fuel: ➤ Not Extend Bt2.5 per liter excise tax cut for diesel since September 20, 2023 ➤ Decreased retail diesel price to Bt30.0 per liter Benzine Fuel: Reducing retail price in Benzine categories up to Bt2.50 per liter for 3 months NGV and LPG Price: ➤ Household sector: increased LPG price cap to Bt423 /per 15-kilo canister (Effective March 2023) FT Rate: Fuel Adjustment Tariff (FT) Rate for electricity is set to decrease to Bt0.9119 (during May to August 2023) and Bt0.2048 (during September to December 2023) 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 Jan-22 Sep-22- May-23- On September 13, 2023, the Government announced the following VAT Rates: ■Maintain the 7% value-added-tax (VAT) rate until September 30, 2024 Source: The Census and Economic Information Center (CEIC), Electricity Generating Authority of Thailand (EGAT), newspapers complied by KResearch บริการทุกระดับประทับใจ K KASIKORNTHAI Public Transport Infrastructure Investment Type of Projects Total projects of "Thailand strategic development of transport infrastructure 2015 to 2022" master plan 6. Air Transport 6% 5. Marine Transport 6% 4. Dual- Track Railways 15% 3. Bangkok and Mass- Transit system 16% 7. Others 7% 1. High- speed Rails. 33% 2. Motorway & Roads 17% 5.Dual-truck railways 20% For 2023, public infrastructure investment is estimated to be B164bn or 1.0% higher than 2022* 4.Motorway & Roads 16% Source of funds ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Project Detail (Total Budget) State Enterprise PPP 22% 12% TFF fund 1. High-speed Rails (Bt1,006.7bn) 2% 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 2% 7.Others 1% 1.High speed 3.Air- transport 27% rails 29% 2.Bangkok & Mass-transit system 5% Project Detail (Expected disbursement in 2023) High-speed Rails (Bt47.6bn) Motorway & Roads (Bt26.2bn) Bangkok and Mass-Transit system(Bt8.2bn) Dual-Track Railways (Bt32.8bn) Air Transport (Bt44.3bn) Marine Transport (B3.3bn) Expected in 2023 Total projects Number of projects 18 Total disbursement Bt164bn Source: Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022 master plan) and estimated by KResearch (as of November 2023) Notes: PPP = Public-Private Partnership, TFF fund = Thailand future fund. Total investment may be reduced due to cutting the scope of work, delay in construction, and allocation of state disbursement for COVID-19 relief measures บริการทุกระดับประทับใจ 140 139#71K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Projections on Budget Disbursement of Public Transport Infrastructure Investment (Million Baht) 250,000 200,000 150,000 100,000 50,000 0 2016 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 November 2023 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK On-going highlight projects under construction in 2023* Projects under construction E Lop Buri-Pak Nam Pho Bang Yal- Kanchanaburi Motorway Motorways/Expressways Rama III Dao Khanong Bang Yai - Kanchanaburi (M81) Bang Khun Thian - Ban Phaeo (M82) Bang Bua Thong-Bang Khun Thian (M9) Expected completion year Note 2024 71% in progress 2024 94% in progress 2025 59% in progress 2029 Mabkabao-Jira Junction Bang-Pa-In Nakhon Ratchasima Motorway Bangkok-Nakhon Ratchasima High speed rails Thailand - Chinese (Bangkok - Nakhon Ratchasima) 2028 24% in progress Bangkok-Rayong (3 Airports) 2029 Mass - transit system and commuter rail lines Pink line (Khae Rai-Min Buri) 2023 98% in progress Laem Chabang deep sea port development phase Purple line (Tao Poon-Racha Burana) 2027 17% in progress Map Ta Phut deep seaport phase Dual-Track Railways Lop Buri Pak Nam Pho 2023 90% in progress MabKabao Jira Junction 2026 55% in progress Prachuap Khiri Khan - Choom Porn 2023 98% in progress Ban Pai-Nakorn Panom 2026 DX Dual-Track Train Den Chai-Chiang Rai 2028 2% in progress Mass-Transit System and Commuter Train Air transport High Speed Train Airport Motorway Suvarnabhumi Airport 3rd runway 2023 73% in progress U-Tapao Airport 2027 Marine transport Single Rail Transfer Operator Intermodal Facility Laem Chabang Phase 3 Map Ta Phut Phase 3 2027 6% in progress 2027 58% in progress Others Land bridge (Chumphon-Ranong) 2030 Lad Prao-Samrong Nakhon Pathom-Hua Hin Flua Hin - Prachuap Khiri Khan Suvarnabhumi Airport (Phase II) Thailand Cultural Center- Min Buri Prachuap Khin Khan- Chumphon.. Khae Rai-Min Buri Source Ministry of Transport and KResearch (as of November 2023) Notes Projects that visibly have construction progress on-site or have been stated in official documents that it had been constructed *Only highlight/Mega projects are shown in this presentation บริการทุกระดับประทับใจ 141 142#72K KASIKORNTHAI Upcoming Infrastructure Projects TOR Process/ Bidding Process /Land reclamation /Preparing for construction Air Transport: Don Mueang Airport Phrase 3 Motorways: Kratuu-Pathong (Phuket) Mass-Transit System and Commuter Rail Lines: TOR process TOR process Status Expected to start construction 2024 2024 Note Orange line (Bang Khun non - Cultural center) Bidding Process 2023 Expect to delay due to a change in TOR Dark Red line (Rangsit - Thammasat University) Light Red line (Taling Chan - Siriraj) TOR Process + Land reclamation TOR Process Land reclamation TOR Process + Land reclamation 2025 2025 Expect to open bidding by 1H24 2025 Red line (Taling Chan - Salaya) Projects Preparation for approval by Cabinet/ PPP Process /EIA Process/Feasibility Plan High-Speed Rails: Thailand-Chinese F2 (Nakhon Ratchasima - Nong Khai) Bangkok-Rayong (3 Airports) F2 Air Transport: Suvarnabhumi Airport Phase 3 (North building expansion) Suvarnabhumi Airport Phase 2 (East expansion) Motorways: Bang Bua Thong-Bang Khun Thian (M9), Srinakarin-Suvarnabhumi (M7) Rangsit-Bag Pa In (M5) Nakhon Pathom - Cha am (M8) Dual-tracks Railways: Khon Kean-Nhong Kai, Pak Po-Den Chai (*Priorities) Jira-Ubonracha Thani Den Chai-Chiangmai, Choom Porn-Surat Thani, Surat Thani-Song Khla, Had Yai-Padang Besar Mass-Transit System and Commuter Rail Lines: Red line (Bangsue-Phayathai-Makkasan-Huamark) Dark red line (Bangsue-Hua lamphong) Grey line (Watcharapol -Thong Lo) F1 Brown line (Khae Rai-Lam Sali) Others: Land bridge (Chumphon-Ranong) Status Preparation for approval by Cabinet in 2H23 Feasibility plan Review master plan for Phase 3 Expect to open bidding by 2H23 Preparation for approval by Cabinet by 2H23 EIA process Preparation for approval by Cabinet by 2H23 EIA process Approved by Cabinet (16 Oct 2023) Preparation for approval by Cabinet EIA process Preparation for approval by Cabinet Preparation for approval by Cabinet Preparation for approval by Cabinet (BMA proposes to MRTA to be the operator) EIA Process EIA Process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Upcoming Infrastructure Projects by Areas Denchai-Chiang Rai-Chiang Khong High speed train Bangkok to Chiang Mai Light rail in Chiang Mai Regional airport development (Chiang Mai) Denchai to Chiang Mai Pak Nam Pho to Denchai Orange Line (Bang Khun Non to Thailand Cultural Center) Purple Line (Tao Poon to Rat Buran: ITV Rangsit to Eang Pain Bangkok to Mahachai Nakhon Pathom to Cha-am High speed train Bangkok to Hua Hin 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 Ratchasimal Dark Red Line (Rangsit to Thammasat University) 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 Regional airport development (Krabi) Chumphon to Surat Thani Regional Airport (Nakom Srithammarat) Surat Thani-Hat Yai-Songkhla Dual Track Railway Mass Transit System and Light Rails High Speed Train Airport Katu to Patong in Phuket Light rail in Phuket Regional airport development (Trang) Hat Yai to Padang Besar Motorway/Expressway Port THat Yai to Malaysian border บริการทุกระดับประทับใจ Source: Ministry of Transport and KResearch (as of November 2023) Notes: Some projects are expected to be delay due to COVID-19 situation 143 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 ■Investment: 1) Approved Investment: Bt2.0 trn (2018-2022) from (1) BOI's approved projects (private sector investment) Bt1,250 bn (2) infrastructure investment under Public Private Partnership (PPP) Bt661 bn and (3) government investment from integrated budgeting Bt95 bn. 2) Investment Framework in Infrastructure: Bt337 bn (2023 - 2027) from (1) government investment Bt178 bn and (2) private investment and under Public Private Partnership (PPP) Bt159 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* U-Tapao airport and aircraft maintenance Approved Investment Amount (Bt2.0 trillion 2018-2022) A Chachoengsao chonburi Rayong EN 000000000000 Sattahip commercial seaport Laem Chabang port phase#3 Map Ta Phut port phase #3 High-speed rail-east route Double-track railway ++++ Highways and motorway Next-generation automotive (EV/AV) Aviation industry, Robotics, Smart electronics Advanced petrochemical and Bioeconomy Medical hub 12 Tourism Global Business Hub / Free Economic Zone New Cities, Inclusive growth 15 Public Utilities Approved infranstructure investment under PPP Bt 661 bn O Source: The Board of Investment of Thailand (BOI), and The Eastern Economic Corridor Office of Thailand (EECO) presentation and KResearch projected (as of August 2023) บริการทุกระดับประทับใจ Government's approved investment Bt 95 bn BOI's approved investment Bt 1,250 bn 144#73K 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) U Tapao International Aviation Co., LTD (Bangkok Airways led Consortium consisting of Bangkok Airways, BTS, Sino-Thai) After the approval of amendments to overlapping area contracts 2029 2H23 2027 U-Tapao Airport and Aviation City Bt290bn Royal Thai Navy Jun 2020 U-Tapao MRO Bt8.4bn Royal Thai Navy TBC (Maintenance, Repair Overhaul) To Launch Term of References (TOR) for bidding in June 2022 2025 GPC Nov 2021 (Gulf Energy Development Pcl + PTT Tank Terminal China Habour) 4Q23 (F Dock) 2027 (for F1 Dock) Laem Chabang seaport (3rd Phase) Bt114bn Port Authority of Thailand and for F Dock Development C NNC 2Q21 2029 Aug 2020 (NTL Marine+Nathalin + Zhonggang Construction) for Land reclamation project (Land reclamation) (for F2 Dock) Bt47.9bn Map Ta Phut seaport and (3rd Phase with Phase 3.1 & 3.2) Industrial Estate Authority of Thailand Oct 2019 and PTT Tank Terminal + Gulf Energy Development Pcl 3Q21 2025 for Land reclamation and Natural gas harbor Bt7.5bn Not define date yet 2025 2026 for Liquid cargo harbor and warehouse Source: Newspaper, Eastern Economic Corridor Office of Thailand and KResearch as of November 2023 บริการทุกระดับประทับใจ K KASIKORNTHAI Thailand Economic Figures ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 145 บริการทุกระดับประทับใจ 146#74K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Currency and Interest Rate Outlook (as of 13 December 2023) USD/THB: End Period Interest Rate Trend Bt 35.97 35.84 33.41 34.61 35.00 34.00 Fed Funds rate BOT's 1-Day Repurchase rate 10.00 332 37 82.68 32.91 32.66 32.55 29.98 29.95 5.00 2.25 2.00 0.00 29 1,50 1.50 1.50 1.50 1.25 0-0.25 0-0.25 0.25-0.50 0.50-0,75 1.25-1.50 2.25-2.50 1.50-1.75 0-0.2550 0-0.29.50 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23F Dec-24F 4.25-4.50 1.25 5.25-5.50 4.50-4.75 2.50 2.50 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 4Q23F 4Q24F USD THB ■ Baht is expected to be at 34.00 per USD at the end of 2024 as the difference between the interest rates of the BOT and the Fed is likely to narrow ■ Also, Thai economy is likely to continue growing and the current account balance is likely to pose a bigger surplus ■ However, Thai baht will be facing some volatility throughout next year due to several risks in many area that will carry into 2024 ■Fed would cut its interest rates totaling of 75bps starting in 2Q24 as the Fed would wait and ensure that inflation will not surge back up again ■ On the contrary, BOT's rate would reach its terminal level and would maintain the current rate at 2.50% throughout 2024 to ensure that inflationary pressures from government stimulus as well as minimum wage hikes are well contained Note: F is estimated by KBank Capital Markets Research (as of December 13, 2023) บริการทุกระดับประทับใจ K KASIKORNTHAI Monthly Economic Conditions: October 2023 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 2022 Units: YoY %, or indicated otherwise Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 ■In October 2023, private Private Consumption Index (PCI) 8.5 5.9 6.7 2.1 6.3 6.7 8.6 8.3 7.0 5.8 7.8 7.6 6.6 7.3 consumption improved in Non-durables Index 2.1 1.4 2.0 -0.5 2.2 3.6 1.9 1.9 4.3 1.7 1.9 2.6 0.9 3.5 Durables Index Service Index Passenger Car Sales Motorcycle Sales 7.4 2.6 0.3 -5.6 0.4 4.3 3.0 1.3 7.9 4.2 2.9 -1.8 -2.6 3.9 almost all categories, except in 22.9 24.7 23.0 19.9 22.7 24.2 28.2 24.0 19.1 17.3 17.8 16.6 15.3 11.9 10.6 4.4 -11.1 -1.0 -9.4 22.8 -26.3 24.5 -21.6 31.7 -29.7 32.8 43.2 38.4 12.0 0.6 3.3 -12.7 -1.2 15.1 9.0 11.5 23.5 25.3 13.5 9.2 9.6 25.1 service sector that showed sign of deceleration Private Investment Index (PII) 2.7 0.5 -1.0 4.4 -1.6 0.0 0.7 -2.4 3.1 -1.8 1.0 4.9 -4.5 -0.2 Construction Material Sales Index 3.3 4.1 11.1 -3.6 -1.1 0.2 1.8 -7.6 2.6 -1.3 1.0 3.4 -1.5 -1.9 Domestic Machinery Sales at constant prices 8.6 3.7 3.1 0.2 0.4 3.3 5.3 0.8 4.9 4.6 -6.4 -12.4 -12.1 -5.5 Imports of Capital Goods at constant prices -2.7 -5.1 -9.2 -13.5 -4.5 -2.6 -1.1 -3.9 11.6 5.4 10.1 -1.7 1.5 6.0 Newly Registered Motor Vehicles for Investment 8.6 -4.0 -10.1 -8.5 -14.7 -10.7 -17.7 -17.8 -16.5 -20.0 -10.5 -27.5 -30.8 -8.9 Manufacturing Production Index 0.4 4.2 -5.4 -8.4 4.8 -2.4 -3.9 -8.7 -3.0 -5.0 4.7 -7.7 -6.3 4.3 Capacity Utilization 62.8 60.5 60.1 60.0 60.4 61.4 60.7 58.6 59.7 59.6 60.2 58.9 58.6 57.8 Agricultural Production Index 0.9 -24 1.8 -0.9 2.5 5.6 1.5 9.1 -5.7 -0.6 -3.2 -0.1 1.3 -0.9 Agricultural Price Index 11.6 18.4 13.3 7.5 17 44 -87 -7.4 -2.5 -5.9 -3.6 -2.8 1.6 1.0 Tourist arrival growth 2506.6 7178.9 1815.8 872.3 1502.7 1283.3 953.0 644.0 286.2 191.5 119.5 107.7 69.2 49.7 Exports (Custom basis) 5.5 4.4 -6.0 -14.6 4.5 4.7 -4.2 -7.6 4.6 -6.4 -6.2 2.6 2.1 8.0 Price 4.2 3.2 3.0 3.2 3.0 2.1 0.9 0.9 0.2 -0.4 0.5 1.1 1.7 1.5 Volume 1.3 -6.3 -7.8 -14.2 -6.3 -6.0 -6.5 5.8 -6.1 -5.5 -5.9 -2.9 -0.6 5.3 Imports (Custom basis) 13.6 -2.1 5.6 -11.9 5.5 1.1 -7.1 -7.3 -3.4 -10.3 -11.0 -12.8 -83 10.2 to deficit Price 13.0 13.0 Volume 2.0 བསྒྱུ 12.1 12.4 8.8 5.2 0.5 1.8 -1.6 -3.5 -1.8 -0.6 1.5 1.3 -7.7 37 -190 2.1 -32 -61 -53 -0.3 -6.0 -10.4 -114 -9.2 9.1 Trade Balance ($ millions) (Custom basis) Current Account ($millions) -16,123 -16,942.4 410.9 -521.8 -596 -1,342 -1,034 -4,650 -1,113 2,719 -1,472 -1,849 58 -1,978 360 2,093 -832 854.4 -2,445.6 509.4 3,964.2 -239.6 -3,161.6 867 6 508.0 401.2 3,406.0 664.6 Headline CPI Core CPI 6.08 2.51 5.98 5.55 3.17 3.22 5.89 3.23 5.02 3.79 2.83 2.67 0.53 0.23 0.38 0.88 0.30 -0.31 3.04 1.93 1.75 1.66 1.55 1.32 0.86 0.79 0.63 0.66 ■Both of manufacturing and agricultural productions declined, after accelerating in the previous period ■Thai exports expanded at a highest rate in more than a year ■Meanwhile, current account still registered to surplus for the third consecutive month, despite trade balance returning ■Headline inflation slipped into negative territory for the first time in 25 months, due to government measures and high base in 2022 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ 147 148#75% YoY of MPI K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KR Household Economic Condition Index (KR-ECI) ■ In September 2023, KR-ECI and 3-month Expected KR-ECI rose to 37.4 and 39.7, respectively, compared to the previous month. This indicates a significant improvement in households' views toward product prices - particularly in the energy and utility categories - and expenses (excluding debt) following the government's formation and introduction of stimulus measures such as a reduction in energy prices. KR Household Economic Condition Index (KR-ECI) Components of 3-month Expected KR-ECI 48.0 KR-ECI 50.0 KR Household Economic Condition Index (KR-ECI) 3-month Expected KR-ECI 40.0 44.0 42.0 40.0 38.0 36.0 14.0 32.0 30.0 Jan-18 Apr-18 M-18 Oct-18 Jan-19 Apr-19 JU-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 12-10 12-0 M-21 12-10 Jan-22 April 22 MY-22 Oct-22 Jan-23 Apr-23 Jul-23 Current KR-ECI ■Sep 23 Aug 23 37.0 Household savings 3-month Expected KR-ECI 40.9 Household income and employment 39.7 48.7 489 44.1 51.5 50.0 49.4 38.9 Household debt 50.3 37.4 225 36.2 Household expenses excluding debt 204 224 21.5 Prices of consumer goods 31.3 29.6 9.1 Sep-23 Aug-23 27.7 Source: KResearch 0 10 20 30 40 50 0 10 20 30 40 50 60 Source: KResearch 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 K KASIKORNTHAI Economic Condition Highlights: October 2023 Oct23 MPI and CAPU declined MoM after accelerating in the previous period ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 3Q23 All property indicators showed improvement, especially construction area permits that returned to positive territory 30.0 20.0 10.0 75.0 400% 300% 65.0 58.7 200% 100% 0.0 55.0 0% -10.0 -4.3 Mar 45.0 1.01. -0.08 -0.10 -100% -20.0 -200% -30.0 MPI (Ihs) Jan-17 Oct-17 Jul-18 Apr-19 Jan-20 Oct-20 Jul-20 Apr-22 Jan-23 35.0 -%Capacity Utilization (rhs) 1009 1010 1011 1012 1013 1014 Construction areas permitted Nationwide 1015 1016 1017 1018 1019 1020 1021 1022 1023 Condominium Registration Nationwide New Housing registered in BKK and Vicinity Oct23 Thai inflation slipped into negative territory for the first time in more than 2 years, due to government support and high base 3Q23 Land price continued to improve in line with Thai economic recovery, while housing prices remained flat 20.0 2.0 8.00 1.5 1.0 0.66 10.0 0.5 0.0 -0.5 1.00 0.00 -0.31 -1.00 0.0 -1.0 -1.5 -4.00 -20 -5.00 Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- 17 17 17 18 18 18 19 19 19 20 20 20 21 21 21 22 -10.0 22 22 23 Care CPI (MoM-Ihs) Care CPI (YoY rhs) Headline CPI(MoM-Ihs) Headline CPI(YoY-rhs) Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) Single House (With Land) บริการทุกระดับประทับใจ 1Q09 4Q09 3Q10 2011 1012 4Q12 3Q13 2014 1015 4Q15 30 16 2017 1Q18 4Q18 3019 2020 1021 4Q21 3022 2023 Townhouse (With Land) Land 3.8 3.7 3.6 150 149#76Million Person CCI K KASIKORNTHAI Economic Condition Highlights: October 2023 Oct 23 CCI increased for the third consecutive month, amid government's subsidy measures, while BSI continuously declined ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Private consumption improved in almost all categories. However, private investment slightly dropped 90 60.2 45 48.9 40 35 888888888 BSI % YoY 60% 40% 11.9% 20% 7.3% 6.0% 3.5% 3.9% 0% -20% -0.2% -8.9% -1.9% -40% PCI PPI -60% Registered Construction Motor Materials Vehicles Import of Capital Consumer's Consumer's Consumer's Non Durable Durable Service Goods. 30 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Consumer Confidence Index (CCI) Business Sentiment Index (BSI) ■1Q23 ■2Q23 3Q23 10M23 ■Sep-23 Oct-23 Oct 23 Foreign tourist arrivals slightly increased, even though the activities in service started to show sign of deceleration Exports in Oct 2023 expanded for the third consecutive month, given low base in 2022 and improvement in some categories Export Value (USD 2507% 50.01 40.0 100% Million) 20.4% 209% 32,000 8.9% 9.4% 7.3% 50% 28,000 30.0 0% 24,000 -83.2% -93.6% 49% 20.0 -50% 20,000 6 10.0 -100% 16,000 12,000 0.0 -150% 8,000 2015 2016 2017 2018 2019 No of Foreign Tourist Arrival 2020 2021 2022 10M23 Oct23 --% Tourist Arrival YoY (RHS) 4,000 0 Jan-17 Sep-17 Exports May-18 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ K KASIKORNTHAI Exports and Imports: 10M23 Exports by Country % YoY 60 50 40 30 8.0% 20 10 0 -10 6.8% -20 -30 -40 Jan-19 Sep-19 Exports excluding gold May-20 Jan-21 Sep-21 Exports % YoY May-22 Jan-23 Sep-23 Exports excluding gold % YoY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Imports by Country Others 19% CLMV 9.4% Others 34.4% ASEAN 19.0% Middle East 10% China 9.9% Taiwan Middle East 3.1% Hong Kong 3.2% Australia EU Japan 3.3% 6.2%7.1% U.S.A. 13.7% Top 10 Exports by Product (Customs Basis) China 24% 5% U.S.A. 7% CLMV 5.3% Japan EU 11% 7% ASEAN 17% Top 10 Imports by Product (Customs Basis) Total Exports, Custom Basis USD Millions 10M23 Weight Import, Custom Basis % YoY USD Millions 10M23 Weight %YoY Total Exports, 236,648 100.0% -2.7% Total Imports, 243,313 100.0% -4.6% Motor cars, parts and accessories 24,851 10.5% 7.4% Crude oil 27,960 11.5% -8.0% Automatic data processing machines and parts thereof 14,400 6.1% -17.6% Machinery and parts 17,811 7.3% 3.4% Electrical machinery and parts 17,754 7.3% 4.5% Precious stones and jewelry 12,855 5.4% -6.0% Electronic integrated circuits 16,343 6.7% 1.1% Rubber products 11,043 4.7% 5.6% Refine fuels 8,283 3.5% -6.2% Chemicals 15,106 6.2% -15.5% Electronic integrated circuits 8,152 3.5% 5.3% Iron, steel and products 11,179 4.6% -17.2% Polymers of ethylene, propylene, etc in Natural gas 9,944 4.1% -13.0% 7,540 3.2% -18.5% primary Jewellery including silver bars and gold 9,800 4.0% -26.6% Machinery and parts thereof 7,305 3.1% -1.4% Other metal ores, metal waste scrap, and Chemical products 6,775 2.9% -18.0% 9,429 3.9% -18.8% product Fresh, frozen and dried fruit 6,408 2.7% 30.2% Vegetables and vegetable products 8,708 3.6% 14.6% Source: Ministry of Commerce บริการทุกระดับประทับใจ 152 151#77K KASIKORNTHAI Export and Import Data: 2016 - 2022 Exports by Country ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Imports by Country 24.6% 24.5% 23.4% 23.8% 22.9% 22.2% 22.6% 21.7% 24.1% 23.9% 22.3% 22.2% 24.2% 24.4% 42% 3.8% 3.3% 7.6% 8.3% 6.5% 8.2% 9.7% 8.2% 11.3% 5.3% 5.2% 5.0% 6.2% 7.2% 6.7% 7.3% 5.4% 11.1% 11.4% 11.2% 12.7% 14.8% 15.4% 6.0% 16.6% 5.9% 15.8% 13.4% 14.5% 14.2% 14.1% 13.4% 11.4% 9.5% 9.3% 9.9% 10.0% 9.8% 9.2% 8.6% 11.0% 12.5% 12.0% 11.8% 12.9% 13.7% 12.0% 21.6% 20.0% 20.1% 21.3% 24.2% 24.9% 23.4% 8.5% 8.3% 8.3% 8.0% 7.6% 8.0% 7.9% 10.3% 10.6% 11.6% 11.2% 10.5% 10.3% 10.9% 8.3% 8.0% 7.8% 7.8% 7.5% 6.8% 6.0% 4.9% 4.8% 4.9% 5.7% 6.0% 5.2% 5.3% 15.1% 14.6% 15.5% 14.4% 13.4% 13.7% 14.2% 13.9% 13.8% 13.4% 13.3% 13.0% 11.9% 12.2% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 ■ASEAN 5 CLMV EU China Japan USA Hongkong Middle East others ASEAN 5 CLMV EU China ■Japan ■USA ■Middle East others 2022 2022 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight % YoY USD Millions Weight % YoY Total Exports, 287,068 100.0% 5.5% Total Imports, 303,191 100.0% 13.6% Motor cars, parts and accessories 28,214 9.8% -3.5% Crude oil 37,397 12.3% 59.1% Chemicals 21,023 6.9% 1.8% Automatic data processing machines and 20,664 7.2% -6.2% parts Precious stones and jewellery 15,106 5.3% 50.3% Machinery and parts Electrical machinery and parts 20,779 6.9% -0.8% 20,241 6.7% 5.1% Rubber products 13,862 4.8% -4.2% Electronic integrated circuits 19,041 6.3% 25.7% Polymers of ethylene, propylene, etc in 10,683 3.7% -5.0% Iron, steel and products 15,581 5.1% -5.2% primary Refine fuels 10,105 3.5% 14.2% Jewelry including silver bars and gold 15,561 5.1% 29.8% Chemical products 9,572 3.3% -3.1% Other metal ores, metal waste scrap, and 13,515 4.5% 4.3% Electronic integrated circuits 9,320 3.3% 9.4% product Machinery and parts thereof 8,744 3.1% 7.2% Natural gas 12,717 4.2% 115.7% Air conditioning machine and parts thereof 7,044 2.5% 8.6% Computers, parts and accessories 9,034 3.0% -11.0% Source: Ministry of Commerce % YoY บริการทุกระดับประทับใจ K KASIKORNTHAI Export and Import Growth by Key Destinations Export growth by key destinations ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Import growth by key destinations 35% 2018 2019 2020 2021 2022 9M23 35% 2018 2019 2020 2021 2022 9M23 25% 25% 15% 5% 10.0% 11.0% 5% -5% -6.9% 0.1% 5% -1.3% -1.2% -4.7% -3.8% -5% -15% -2.9% -2.8% -16.2% -25% -15% -10.2% -9.5% י זיו -6.0% ASEAN-5 CLMV EU China Japan USA Total Export ASEAN-5 CLMV EU China Japan USA Total Imports 2022 9M23 2022 9M23 Exports Value (Million USD) Value Imports Share Share ASEAN-5 40,743 14.19% (Million USD) 29,804 13.9% Value (Million USD) Value Share (Million USD) Share ASEAN-5 37,046 12.2% 25,322 11.6% CLMV 31,147 EU 22,794 China 34,390 Japan 24,669 USA Total 47,527 10.9% 7.9% 12.0% 8.6% 16.6% 20,063 16,595 26,333 12.4% 18,856 36,004 16.9% 9.4% CLMV 15,954 5.3% 11,795 5.4% 7.8% EU 18,244 6.0% 15,166 6.9% China 71,014 23.4% 52,583 24.0% 8.6% Japan 34,584 11.4% 23,897 10.9% USA 18,026 5.9% 14,803 6.8% 287,068 100.00% 213,069 100.00% Total 303,191 100.00% 218,902 100.00% Source: Ministry of Commerce บริการทุกระดับประทับใจ 154 153#78K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Challenges: Exports In 2023, Exports are expected to experience negative growth amid several uncertainties Exports Short-term Challenges Key Structural Problems Key Affected Products Short-term Measures from Authorities and Related Parties Long-term Measures from Authorities and Related Parties ■Global economic recession ■Ongoing geopolitical risks ■ Unfavorable weather condition ■THB volatility ■High dependence on China's market ■Changing demand in electronic products and loss of competitiveness in some areas (e.g. HDD) ■High crop surplus among competitors ■Electronics and Electrical Appliances (Structural Challenge) ■Fishery and Agriculture Products (US SIMP) ■Steel and Aluminum (US tariffs and CBAM), Washing machine (US tariffs) ■Plastic, ICs, Machinery and Electrical Equipment (US-China trade dispute) ■ Extending products to catch up with changing consumer trends ■ Enhancing practices to comply with international standards ■Setting up export promotion board ■Providing supports to help individuals gain skills and qualifications relevant to the needs of the labour market ■Negotiating FTA and regional trade agreements ■Relocating factories to GSP eligible countries ■Promoting BOI privileges granting merit based on competitiveness enhancements ■Enhancing productivity Note: HDD Hard Disk Drive; IUU fishing = Illegal Unreported and Unregulated fishing; FTA = Free Trade Area; GSP = Generalized System of Preferences; BOI = the Board of Investment of Thailand Source: KResearch (as of January 2023) บริการทุกระดับประทับใจ 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)* food baverages tobacco 31.0 textiles paper and paper products rubber and plastics products 42.8 basic metals motor vehicles, trailers and semi-trailers Other manufacturing 43.9 45.9 46.1 52.9 500.0 700.0 631.1 618.6 511.9 459.5 447.4 361.4 53.3 300.0 69.2 72.7 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 9M23 2022 2021 Investment Value (Bn) 100.0 364.4 -100.0 2017 2018 2019 2020 2021 2022 1H23 Investment value of BOI-approved applications (by Industry)* 150,000 130,000 110,000 1H23 107,688.0 90,000 70,000 38,932.0 50,000 18,211.0 22,244.0 25,963,0 30,000 14,408.0 9,926.0 10,765.0 13,053.0 5,003.0 10,000 -10,000 Agricultural Food and Biotechnology Source: The Bank of Thailand (BOT), The Ministry of Commerce (MOC), and Office of Industrial Economics (OIE) Source: The Board of Investment of Thailand (BOI) Note: *Figures above indicate investments of approved projects requesting investment promotion benefits from BOI ** BOI announced new activities & privileges promotion (effective in 2023) บริการทุกระดับประทับใจ High Value Service 156 ** 155#79Persons Million Persons K KASIKORNTHAI Tourism ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Total tourism receipts (both domestic and foreign tourism) will progressively increase in 2023, reaching 61% of the 2019 level, while foreign tourists may reach 27.6 million, or around 69% of the 2019 level %Tourism Revenue to GDP 20.0% 18.2% 17.7% 15.0% 11.6% 11.3% 10.9% 10.0% 6.6% 5.2% 6.4% 57% 5.0% 2.2% 3.0% 3.6% 6.5% 4.4% 1.6% 0.0% 2.2% 2.1% 0.6% 2020 2021p 2022e 2018 2019 2023f In 2023, KResearch projects the number of foreign tourists coming to Thailand may reach 27.6 million, or around 69% of the 2019 level Meanwhile, domestic travel is expected to report steady growth. Preliminarily, KResearch projects Thais will make around 185.0 million domestic trips in 2023 % Foreign tourism revenue to GDP % Tourism tourism revenue to GDP % Domestic tourism revenue to GDP No. of Foreign Tourists and Domestic Trips Tourism Revenue (Bt bn) 50.00 166.0 172.7 185.0 200 3,500 150.8 2,947 2,994 40.00 3,000 150 30.00 38.20 90.6 27.6 39.92 100 20.00 53.0 11.14 Million Trips 2,500 1,876 1,912 1,954 997 2,000 1,500 ,071 ,082 793 352 633 1,170 784 50 10.00 6.70 0.42 1,000 500 319 474 254 98 364 0.00 0 0 2018 2019 2020 2021r 2022e 2023f 2018 2019 2020 2021r 2022e 2023f No. of Foreign tourists (persons) No. of Domestic trips ■Foreign Tourism Revenue Domestic Tourism Revenue ■Total Revenue Source: MOTS and Forecast by Kasikorn Research Center Note: As of October 2023 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In comparison to the same period in 2019, 68% of foreign visitors to Thailand in the first nine months of 2023 returned Quarterly comparison of foreign tourists between 2019 and 2023 Number of foreign visitors by region in the first nine months of 2023 compared to 2019 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 1Q 2Q 3Q ■2019 (Pre-Covid 19) #2023 Africa Middle East Oceania America South Asia Europe North-East Asia South-East Asia Persons 0 5,000,000 ■9M23 10,000,000 9M19 (Pre-Covid 19) 15,000,000 Top 5 Foreign Tourists by Country in 3Q23 Top 5 Foreign Tourists by Country in 9M23 Vietnam India South Korea China Malaysia Russia India South Korea China Malaysia Persons 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Persons 0 ■ 3Q23 ■3Q19 Source: MOTS บริการทุกระดับประทับใจ 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 ■9M23 -9M19 158 157#801,000 Units 170 ■New Housing Completions Supply Side: New Housing Completions and New Projects Launched in BMR* 150 ■New Projects Launched 130 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: The first eight months of 2023 saw a drop in the launch of new projects because demand declined, and unsold units remained high. % of GDP 110 117 90 81 70 66 68 50 -10 322 30 10 131133 124 111 125 14 114 119 - 102 132 108 133 127 - 118 86 115 112 101 73 8160.5 30 Outstanding Mortgage Loans to Individuals and Property Developers to GDP 25 20 16.8 2006 2007 2008 2009 2010 2012 2013 107 92 70.6 63.0 0 15 26.7 05 10.4 10 2015 2016 2018 Demand Side: Transferred Properties in BMR* 2020 2021 2022 4.1 1,000 Units. 250 200 146 161 178 151 159 182 174 196 197 206 197 175 163 166 150 100 50 0 195 8M2022 119 115 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 8M2022 8M2023 8M2023 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 1H23 ---Loans to Property Developers 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 4.1% in 1H23, lower than pre-crisis level ■Supply Side: The number of new housing projects launched in 8M23 fell by 10.8% YoY. Beside the high base of comparison, slowing recovery of consumers' purchasing power as well as high unsold units caused developers to remain cautious ■Demand Side: Property sales during 8M23 decreased by 3.9% YoY as a result of a drop in demand. A cautious approach to home buying may be seen later in 2023, due to the fragile economy, high levels of family debt, and rising mortgage loan rates ■Mortgage NPLs among Thai commercial banks was at 3.16% in 2Q23, compared to 3.01 in 2022 and 3.52% in 2021 Sources: National Economic and Social Development Council (NESDC), BOT, Real Estate Information Center (REIC), Agency for Real Estate Affairs (AREA), and KResearch Note: *Including Condominium, Single House, and Townhouse; BMR = Bangkok and Metropolitan Area บริการทุกระดับประทับใจ K KASIKORNTHAI Household Borrowing Household Borrowing to GDP ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL for Consumption Loans of Thai Commercial Banks % of Loans 888 Old Definition % of NGDP 100 New Definition 25 94.2 94.7 91.4 90.7 90.7 84.4 84.0 82.7 84.1 76.1 80 60 59.3 7.1 10.6 9.4 9.7 8.8 7.5 7.6 8.3 13.4 13.3 12.0 12.7 12.3 12.2 10.5 10.5 10.7 12.8 12.7 12.8 220 40 28.9 24.4 8.8 18.9 23.1 23.1 22.3 22.3 25.3 25.3 24.4 24.2 24.2 2505 15 10 22.3 19.6 0 20 11.2 15.1 7.7 29.5 33.5 33.7 33.5 34.3 24.5 38.4 38.7 36.4 35.9 35.8 11.9 13.2 13.9 0 1994 1996 1997 2010 2012 2014 2016 2018 2019 2020 2021 2022 1Q23 2Q23 Commercial Banks SFIs Saving Cooperatives Non-Bank Fls Others 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 2022) Debt Service Ratio of Thai households % of GDP % 50 117.8 108.2 40 86.9 81.2 66.4 61.9 30 27.9 28.1 27.2 28.4 29.1 27.0 23.0 56.1 20 Australia South Korea Thailand Malaysia US China Source: CEIC and KResearch Singapore 10 0 IIII 2009 2011 2013 2015 2017 2019 2021 Source: NSO and KResearch 2.71 2001 2004 2007 2010 2013 2016 2019 2022 2Q23 ■ Household debt to GDP stayed at 90.7% in 2Q23, and is expected to remain high in 2023 ■Household borrowing to GDP is higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■Thailand's household debt to GDP is comparable to other countries*; debt service ratio of Thai households is still well below 40%, indicating the household debt situation is unlikely to trigger any problems in the foreseeable future ■NPL ratio for consumption loans of commercial banks rose to 2.71% in 2Q23 from 2.62% in 4Q22 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ 160 159#81K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT's Directional Papers on Sustainable Resolutions of Household Debts 1 Existing NPLs (esp. those related to COVID-19) Accelerate Troubled Debt Restructuring or TDR (SFIs, non- bank and banks) Debt counselling services from creditors Debt mediators Voluntary bankruptcy/ rehabilitation filing by debtors made possible 1 Jan 2024 Responsible Lending Issue regulations to ensure responsible lending at all stages of indebtedness Encourage creditors to provide guidelines to assist borrowers, such as debt restructuring, especially existing NPLs 2 Hard-to- solve/persistent debts Starting with persistent debts from express/speedy cash and elderly customers Helping debtors to make practical debt repayment plans 1 Apr 2024 3 Fast debt creation with high default risks Being agri-related debts, credit cards and personal loans Responsible lending (e.g. restriction on product PR, fair contracts, control of debt purposes) Upcoming additional Debt Service Ratio or DSR and LTV ratios to ensure debtors' daily- life survival Risk-based pricing Promote responsible borrowing through literacy Effective date Persistent Debt: PD (Opt-In basis) General PD borrowers are those indebted consecutively for 3 years, borrowers will be urged to make larger monthly payments. Severe PD borrowers are indebted consecutively for 5 years. Participant in the scheme could be able to exit debt cycle within 5 years with interest rates not exceeding 15% per year Source: BOT, as of 14 February 2023 and 21 July 2023 . 1 Jan 2025 Debt-service ratio (DSR), effective timeline depending on economic situation monthly income below Bt30,000: monthly payment for existing and new loans cannot exceed 60% of monthly income monthly income above Bt30,000: monthly payment for existing and new loans cannot exceed 70% of monthly income บริการทุกระดับประทับใจ 4 . . • . Other debts not yet being included in household debts Such debts include Student Loans, other cooperatives or Co-Op (Bt0.7trn; 4.3% of GDP) and loan shark Open data to promote financial inclusion (e.g., water and electricity bill info) Risk-based pricing 2Q25 at the earliest Risk-based pricing (RBP) Submit plans in 1Q24 Be tested in sandbox in 2Q24 Regulatory sandbox (1-2 years) K KASIKORNTHAI BOT's Responsible Lending framework and Timeline Responsible Lending framework ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Intended outcome: Responsible and fair credit service providers throughout the period of indebtedness (end-to-end process) Before/About to go into debt During debt Becoming troubled debt Selling debt Responsible Lending guideline should be implemented under appropriate management Nudge: Financial Literacy and discipline Advertisement Product offering Product development Considering affordability Q3 2023 Q4 Q1 Information Commitment tools Resolving persistent debt Debt restructuring and troubled debt restructuring Incentive Litigation and debt transferring Timeline (Tentative) 2024 Q2 Q3 Q4 2025 Q1 Q2 Responsible Lending (beginning on January 1, 2024) Borrowers with minimum monthly income of Bt20,000 Banks Non-banks Consultation paper and public hearing Release regulations Borrowers with minimum monthly income of Bt10,000* *Impact will be considered in order to further adjust conditions within one year. Risk-based pricing (RBP): 1Q24: RBP Plan proposed by Financial institutions; 2H24: Open the Regulatory sandbox (1-2 years) Debt-service ratio (DSR), depending on the economic situation บริการทุกระดับประทับใจ 161 162#82K KASIKORNTHAI BOT Macro Prudential Policy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions LTV Criteria for Mortgage Loans (Effective: January 1, 2023) New (Including Top-up loans) Criteria for Credit Card / Personal Loans (Effective: September 1, 2017) Credit Cards Price and Type of Properties 1st Contract Lending Criteria NEW 2nd Contract 3rd Contract Onwards New Min.Monthly Income Bt15,000 Old Bt15,000 Personal Loans New Old LTV Limit LTV Limit LTV Limit House ≤ 100%* 80-90% 70% < Bt10mn Condo. ≤ 100%* 80-90% 70% Credit Line (times of average monthly income) Income Credit Line Credit Line <Bt30,000 ≤1.5 times Income < Bt30,000 ≥ Bt10mn House & Condo. < Bt50,000 ≤ 3 times > Bt50,000 ≤ 5 times ≤ 5 times >Bt30,000 Credit Line ≤ 1.5 times ≤ 3 institutions ≤ 5 times Credit Line ≤ 5 times ≤ 90% 80% 70% 1) Under the new framework, LTV limit will be capped at 100% for the first contract of housing loans, and * loans for furniture and decorations can be added up to 10% of collaterals (old - no these conditions) 2) Prior to October 20, 2021, for the second contact, LTV limit is 80% if the first contract's installment payments are less than two years (old - three years); otherwise, LTV limit is 90% 3) Risk weight is 35% if LTV does not exceed its LTV limit; while the risk weight will increase to 75% for the loans for furniture and decorations of the first contract Notes: August 15, 2019: BOT relaxed the LTV rules for co-signers that have no ownership interest in the home being purchased April 2019: BOT tightened LTV criteria for mortgage loans, and raised down payment for the second contract onwards. Year 2009: BOT announced revised criteria in 2009-2010 on mortgage loan risk weights with a different effective date Year 2008: Risk weights for mortgage loans dropped from 50% to 35% under Basel II Criteria for Car Loans ■ Auto Registration Loans (Effective: February 1, 2019): Auto registration loan providers to be approved by Bank of Thailand and Ministry of Finance Regulated by Fiscal Policy Office Picofinance* Regulated by the BOT Pico Plus* Capital Fund Credit Line Interest Rate Ceiling > Bt5mn Bt50,000 ≤ 36% > Bt10 mn > Bt50 mn < Bt100,00 36% for first Bt50,000 Depends on debt-servicing ability ≤24% <28% for the amount in excess of Bt50,000 ≤24% Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province บริการทุกระดับประทับใจ 163 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thailand's external balances remain relatively strong compared to peers International reserves / Imports (Import Coverage) Low foreign holding ratio in Thai government bonds Months of Imports 12 9.9 6 6 0 India % 9.0 25 22.9 8.1 8.0 7.8 20.0 7.0 20 6.5 15.0 15 3 months 10 Indonesia Philippines Korea 5 Malaysia Thailand Singapore 0 Indonesia South Korea Malaysia 11.6 1.9 Philippines Thailand 0.2 Vietnam Source: CEIC, KResearch (*data as of Jun-23, ** as of Sep-23) International reserves / External debts (% Ratio) % 120 100 83.9 80 60 40 31.3 20 0 India 71.9 59.7 39.2 101.9 100% i.in.l. 17.7 Indonesia Philippines Korea Malaysia Thailand Singapore 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 Source: CEIC, KResearch (data as of Jun-23) บริการทุกระดับประทับใจ 164#83Billion Baht Billion Baht K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Monetary and fiscal expansion raises financial stability concerns In contrast to 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 Fed Funds Rate -Lower Bound 6.00 Fed Funds Rate -Upper Bound 5.00 4.00 3.00 2.00 FX Reserves ■Net Forward Position $ Billion $ Billion ■3 months of imports Reserves backing banknotes ■ST external debt 300 300 $241.3 bn $245.8 bn 250 250 200 200 71.8 150 216.6 211.2 150 $217.55 Billion 68.4 100 100 50 50 77.4 0 29.2 2022-end 30.1 0 July 2023 Last Update: October 27, 2023 1.00 0.00 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sources: BOT, Federal Reserves and KResearch (as of August 2023) ■Due to high inflationary pressures, the Fed decided to raise its policy rate to 5.25-5.50% in November 2023 ■Monetary easing leads to a massive exodus of capital from emerging markets and worsens exchange rate depreciation in 2023. However, Thailand's external stability will likely be maintained ■Thai banking system excess liquidity rose slightly. CAR was good (19.54% as of August 2023) and NPL ratio was still manageable (2.67% as of 2Q23), with net profits of Bt123.1 billion in 1H23 Source: BOT and KResearch Excess liquid assets in Thai commercial banks slightly rose Million Baht 5,000,000 183.5 184.7 4,000,000 176.9 178.1 173.8 3,000,000 %LCR 191.9 190.3 191.3 187.7 184.1 2,000,000 2016 2017 2018 2019 2020 Liquid Assets 2021 2022 1Q23 2Q23 Aug-23 ―LCR (%) Note: BOT has imposed the Liquidity Coverage Ratio (LCR) Framework which replaces the maintenance 6% reserve requirement. Regarding the LCR framework, all banks shall maintain high-quality liquid assets not less than net expected cash outflow over the next 30 days. The LCR was implemented on January 1, 2016, with the minimum requirement set at 60%, rising in equal annual steps of 10 percentage points to reach 100% on January 1, 2020 บริการทุกระดับประทับใจ K KASIKORNTHAI Other Figures Thai Bond Market Size (Gov't and Private bonds) 18,000 100 88.8 91.0 90.9 91.8 16,000 90 14,000 63.3 64.4 64.8 69.4 69.6 70.2 72.9 74.5 73.6 78.1 78.7 12,000 53.9 52.4 10,000 8,000 6,000 4,000 2,000 0 • 3 3 8 6 8 8 3 8 8 គឺ % 4.0 3.5 % to GDP 1,200 1,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) Foreign Holdings of Thai Bonds 800 600 4.0% 5.9% 400 -1.0% 1.5% 1.1% 200 49 76 0 2007 2009 2011 8.3% 8.4% 2013 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields 3.6 3.0 2.4 2.4 2.5 2.7 2.8 2.9 2.9 3.0 3.1 3.2 3.2 2.5 2.0 1.5 1.0 0.5 0.0 6M 1Y -Dec 19 2Y 3Y 4Y 5Y Dec 20 - Dec 21 6Y 7Y 8Y --Dec 22 9Y 10Y 15Y Nov 3, 2023 Current Account and FX Reserve USD Billion 50,000 USD216.6 bn (2022-end) USD Billion 300,000 10% 8.2% 7.9% 7.4% 7.1% 6.9% 6.9% 8% 6.0% 6.4% 6.1% 5.7% 6% 4% 2% 0% % of Total Bond Outstanding 40,000 250,000 30,000 200,000 20,000 150,000 10,000 100,000 0 -10,000 50,000 -20,000 2015 2017 2019 2021 Oct-23 1993 1996 1999 2002 2005 2008 2011 USD-14.7 bn (2022-end) 2014 2017 2020 0 % of Thai Bond Market (RHS) Current Account (LHS) --FX Reserves (RHS) Foreign Holding Outstanding (LHS) Source: BOT and ThaiBMA บริการทุกระดับประทับใจ 166 165#84K KASIKORNTHAI Other Figures Million Baht Housing Loans / GDP ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Card Loans/GDP Million Baht % to GDP 600,000 500,000 5,000,000 26.6 27.3 26.9 26.7 26.7 30 400,000 2.0 2.0 2.0 2.1 2.2 4,000,000 22.0 22.3 22.3 22.6 23.2 300,000 25 21.0 19.4 200,000 17.7 17.4 18.0 18.3 20 3,000,000 20 100,000 0 15 2009 2011 2013 2,000,000 1,000,000 1,709,897 1,885,139 2,034,137 2,263,552 2,510,012 0 2009 2012 2,783,129 3,021,811 3,251,488 3.448.852 3.706,397 3,918,565 4,172,556 4,410,235 Housing Loans for Personal Consumption (LHS) 4,666,198 4,702,217 4,755,808 2015 2018 2021 1H23 --% 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 K KASIKORNTHAI Other Figures Loans to GDP as of 2022 United States Thailand South Korea Japan Malaysia Singapore China 0 50 69.9 88.9 100.7 102.9 108.5 126.4 100 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 150 15 0 10 2.4 2.4 2.5 2.5 2.6 2.7 % of GDP 2.9 2.8 2.8 290,425 318,141 333,493 360,096 394.123 418,747 457,090 449.733 458,181 2015 2017 2019 482,966 461,707 Credit Card Loan Outstanding (LHS) Credit Card Loan to GDP (RHS) Note 1) Credit card loans represent outstanding credit card loans from commercial banks and non-banks, excluding SFIs, saving cooperatives and others financial Institutions Personal Loans/GDP 2021 Million Baht 900,000 % to GDP 4.6 4.3 800,000 700,000 600,000 500,000 2.2 222 400,000 1.7 1.9 2.1 2.3 2.4 2.3 2.3 2.3 2.3, 3.4 3.7 3.9 300,000 200,000 100,000 213,745 187,49 213,310 257,129 299,139 312,851 318,354 332,996 354,243 383,303 579,911 580,383 633,153 746,474 821,339 0 2009 2011 2013 Personal Loan Outstanding (LHS) 2015 2017 2019 2021 Aug-23 % 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 167 % YoY ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Banks' Loan Growth and NPL Ratio 15 15.23 12 3.89 9 2.94 2.69 2.44 2.31 2.31 2.99 3.08 3.09 3.14 3.25 3.12 2.86 2.81 12.0 14.6 13.9 10.6 4.8 6.2 2.4 4.6 5.8 2.3 5.6 6.4 2.7 0.5 % of GDP 176.8 0 -0.7 0 2009 200 2011 2013 % YoY Loan Growth 2015 2017 2019 ―% Gross NPL Ratio 2021 2Q23 Note: % YoY loans represent growth of loans in 17 domestically-registered commercial banks Baht % YoY 25 19.9 20 12.8 11.1 15 9.7 10.2 8.7 6.7 7.2 6.0 10 21.1 250,000 11.3 11.0 200,000 4.0 -1.1 5 5.8 14.3 11.0 9.5 4.8 8.0 9.4 6.2 9.2 1.7 5.4 2.6 150,000 0 1.9 -5 -1.6 100,000 -10 11.3 -15 50,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Credit Card Loan Growth Spending Growth 2022 8M23 147,364 163,956 170,467 0 Note: The credit card statistics number includes foreign bank and non-bank credit cards Source: BOT, NESDC, NSO, CEIC Data, and KResearch บริการทุกระดับประทับใจ 185,159 8.6 192,327 3.9 195,807 GDP Per Capita 1.8 3.2 5.7 5.4 202,151 213,586 225,095 236,861 % YoY 20 20 7.2 5.2 2.9 3.0 243,705 225,311 -7.5 231,986 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 GDP Per Capita ―% YoY 248,635 0 -10 -20 -30 168 10 10 6 Aug-23 2.6#85K KASIKORNTHAI Other Figures Population and Labor force ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Unemployment Rate % of Labor Force Million Person 70 2.50 60 54.0 54.5 55.0 54.8 55.2 55.6 56.0 56.3 56.6 56.8 57.1 58.6 59.0 2.00 1.93 1.69 50 1.50 8.9 9.4 89.4 38.6 38.5 38.3 38.1 38.4 38.2 38.5 38.7 39.9 0.3 40 1.50 1.18 1.04 30 1.00 0.68 0.66 0.72 0.84 0.88 0.99 1.05 0.98 1.32 0.85 20 0.50 10 0 0.00 2011 2012 2013 2014 2015 2016 2017 ■Population (Age>= 15 years) 2018 2019 2020 2021 2022 3Q23 Labour Force 2009 2011 2013 2015 2017 2019 2021 3Q23 Foreign Direct Investment Foreign Direct Investment Position by Countries Trillion Baht 10 19.5 15.2 8 13.9 7.5 6 2.8 % YoY 100% 25 22.1 22.2 21.8 22.9 23.8 24.7 24.5 25.8 25.2 24.8 23.7 24.3 20 80% 14.3 9.6 8.2 7.9 8.1 7.5 6.6 6.7 6.6 10.5 15 60% 10 4.7 31.7 -0.4 0.2 5 40% 1.4 4 0 1.9 1.6 17.0 16.1 16.0 1.7 16.0 -5 20% 34.6 35.0 35.1 36.3 2.3 2.0 2.9 14.8 14.7 14.0 35.2 35.6 33.5 6.2 6.1 6.3 7.0 32.5 31.8 3.8 3.7 3.5 13.3 13.2 12.9 30.2 31.9 3.9 14.2 5.0 14.0 2 -10 18.2 17.1 17.6 16.3 16.1 16.7 15.5 17.5 19.5 20.2 21.7 17.9 4.9 5.6 5.8 6.6 6.5 7.0 8.4 8.3 9.1 9.6 9.5 10.9 9.7 0% 0 -15 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2Q23 FDI Position (LHS) % YoY (RHS) Note: 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2Q23 ASEAN ■ EU ■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 Source: BOT, NESDC, NSO, and KResearch บริการทุกระดับประทับใจ Others K 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 169 170#86K KASIKORNTHAI DISCLAIMER: Bank of Sustainability EVCAR ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK This document is intended to provide material information relating to investments or products in discussion and as a reference during the discussion, presentation, or seminar only. It does not represent or constitute any advice, offer, contract, recommendation, or solicitation and should not be relied upon as such. In preparation of this document, KASIKORNBANK PUBLIC COMPANY LIMITED ("KBank") has made several crucial assumptions and relied on financial and other information available from public sources as of the date of this document. Therefore, KBank assumes no responsibility or liability and makes no representations or warrants with respect to the accuracy and/or completeness of the information described herein. Before making their own independent decision to make any investment or enter into any transaction, the recipient of this information ("Recipient") shall carefully review information relating to services or products of KBank, including but not limited to economic and market situations and other factors pertaining to the transaction as posted on KBank's website at URL www.kasikornbank.com and in other sources, and make their own investigation on all other information, documents prepared by other institutions, as well as consult with Recipients' financial, legal, or tax advisors on each decision. The Recipient understands and acknowledges that the investment or execution of the transaction may be a transaction with low liquidity and KBank shall assume no liability for any loss, damage, or expense of any nature incurred by the Recipient arising out of such investment or execution of the transaction. The Recipient also understands and acknowledges that the information so provided by KBank does not represent the expected yield or consideration to be received by the Recipient arising out of the investment or the execution of the transaction. Further, the Recipient should be aware that the transaction can be highly risky as markets are unpredictable and uncertain, and there may be inadequate regulations and safeguards available to the Recipient. KBank reserves the right to amend, either in whole or in part, the information so provided herein at any time as it deems fit, and the Recipient acknowledges and agrees with such amendments, accordingly. For any inquiry, or in the case of making a complaint, the Recipient may seek further information from KBank at [email protected], +(662) 470 6900 to 01, +(662) 470 2660 to 61, or +(662) 470 2673 to 74. * The information herewith represents data in the Bank's consolidated financial statements, some of the numbers and ratios are calculated before netting with KBank's non-controlling interest. บริการทุกระดับประทับใจ 171 K KASIKORNTHAI บริการทุกระดับประทับใจ