#1K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK Investor Presentation as of 1Q23 July 2023 For further information, please contact the Investor Relations Unit or visit our website at www.kasikornbank.com บริการทุกระดับประทับใจ 1 K KASIKORNTHAI KASIKORNBANK at a Glance Top 5% SAPS 2002 86/100 CDP A LIST 2022 CLIMATE carbon MSCI ESG100 Environmental Social Governance neutral 2022 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Established on June 8, 1945 with registered capital of Bt5mn (USD0.15mn) ■Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of March 2023) Assets Loans" Deposits CAR ROE ROA Number of Branches Number of E-Machine (ATM/RCM) Number of K PLUS Users Number of Employees 5) Share Information SET Symbol Share Capital: Authorized Issued and Paid-up Number of Shares Market Capitalization 1Q23 Avg. Share Price: KBANK KBANK-F EPS BVPS Notes: 1) Loans Loans to customers Bt4,238bn (USD124.3bn) Bt2,465bn (USD72.3bn) Bt2,713bn (USD79.6bn) 18.90% 3) 8.43% 4) 1.01% 819 10,924 20.6mn Ranked #2 with 16.34% market share²) Ranked #2 with 16.23% market share²) Ranked #2 with 16.92% market share²) Bank only 18,695/ Consolidated 31,324 KBANK, KBANK-F Bt30.2bn (USD0.89bn) Bt23.7bn (USD0.69bn) 2.4bn shares Bt313.9bn (USD9.21bn) Bt141.35 (USD4.14) Bt141.56 (USD4.15) Bt4.38 (USD0.13) Bt209.71 (USD6.15) Ranked #2 in Thai banking sector 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 March 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 March 2023 (Mid Rate) was Bt34.10 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 22-168 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page KBank Strategy Business Highlights Risk and Credit Management Financial Performance 23-51 52-60 61-70 71-88 1Q23 Highlights 71-74 • Interest Income - net 75 • Non-interest Income 76 • Net Fee Income 77-78 Other Operating Expenses 79 Loan 80-81 • Asset Quality 82-84 Investment in Securities and Funding Structure 85-88 The Wholly-owned Subsidiaries 89-96 Muang Thai Life Assurance (MTL) 97-105 ➤ Other Information 106-120 ■Banking System and Regulations Update ■Government Policy ■Thai Economic Figures ■IR Contact Information and Disclaimer 121-130 131-144 145-166 167-168 บริการทุกระดับประทับใจ 3 4#3K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2023 (as of July 2023) % YoY Key GDP Forecasts and Assumptions 1.5 2.6 3.7 -8.0 -6.1 2020 2021 2022 2023F % YoY 2020 2021 2022 2023F* (Mar 23) 2023F* (Jul 23) GDP -6.1 1.5 2.6 3.7 3.7 Private Consumption -0.8 0.6 6.3 3.3 3.8 Government Consumption 1.4 3.7 0.0 -1.0 -3.0 Total Investment -4.8 3.1 2.3 2.3 1.8 - Private investment -8.1 3.0 5.1 2.8 2.0 - Public investment 5.1 3.4 -4.9 2.3 2.2 Gov't Budget Deficit (% of GDP) -5.2 -4.8 -3.5 -3.8 -3.8 Exports (Customs Basis) -5.9 17.4 5.5 -1.2 -1.2 Imports (Customs Basis) -12.7 29.5 13.6 -2.4 -2.4 Current Account (USD bn) 21.2 -10.6 -16.9 6.0 9.5 Headline Inflation -0.8 1.2 6.1 2.8 1.8 Avg Dubai Oil Price 42.2 68.8 97.0 80.0 78.0 No. of Foreign Tourists (Mn) 6.7 0.4 11.2 28.5 28.5 Policy Interest Rate** 0.50 0.50 1.25 2.00 2.25 Notes: MPC's policy rate is at 2.00% (as of May 31, 2023) Source: Key Points: ■Thai GDP is expected to grow 3.7% in 2023, driven by a strong rebound in tourism sector ■However, waning global economic momentum will put downward pressure on Thai export sector ■Meanwhile, domestic political uncertainty would add downside risks to the Thai economy ■The average headline inflation for 2023 may subside to the level lower than 2.0%, given very low rate in the past few months ■Thai GDP will return to its pre-COVID-19 level in 2023 Risk Factors: ■Uncertainty from political issues in Thailand ■Global economic slowdown ■Uncertainty from Western banking turmoil ■ Volatility in energy and other commodity prices ■Fed rate hike cycle and Thai Baht volatility ■ Ongoing geopolitical risks ■Household and business balance sheet deterioration COVID-19 Vaccination rate in Thailand*** (March 10, 2023): First dose 82.8%, Second dose 77.8%, Third dose and more 50.3% of targeted people KResearch (as of July 11, 2023 vs forecast on March 31, 2023) ** KBank Capital Markets Research (as of July 5, 2023) *** Ministry of Public Health บริการทุกระดับประทับใจ 5 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2023 (as of July 2023) ■Global Economy ■ Government Stimulus Plan ■Inflation ■Exports and Tourism ■Fed Policy Normalization ■Baht Source: KResearch (as of May 8, 2023), and Outlook ■ Global economy: Global economy is expected to decelerate in 2023 amid persistent inflation and continuous rate hikes by central banks around the world while uncertainty remains with geopolitical issues and banking sector turmoil ■US: US economy is likely to face a significant slowdown in 2023 due to Fed's aggressive interest rate hikes while banking sector turmoil may pose additional risks to the economy ■ Eurozone: Eurozone economy is likely to face a significant slowdown in 2023 amid elevated inflation and tightening policy ■China: Chinese economy is expected to expand at a higher rate due to relaxation of COVID restrictions, but risks remain given ongoing property market slump and global economic slowdown ■ ASEAN economies: ASEAN economies will likely experience slower growth amid global economic slowdown, persistent inflation, and tighter financial conditions ■The delay in government formation and budget approval for the 2024 fiscal year will impact budget disbursement and implementation of economic stimulus measures, especially in 4Q23 onwards ■The average headline inflation for 2023 may subside to the level lower than 2.0% as fuel prices are likely to be lower than last year despite OPEC oil production cut. However, inflation is unlikely to drop rapidly, given ongoing cost pass-throughs and lower government subsidies ■Thai exports may experience negative growth in 2023, given global economic slowdown, lower commodity prices, and a high base in 2022 ■The number of tourist arrivals in 2023 is expected to accelerate to 28.5 million ■The Fed paused its rate hike in June, but Fed's dot plots said that the hiking cycle has not been over yet with two mote hikes, but the markets expect only one more rate hike ■Fed's interest rates at the end of 2023 are expected to be 5.25-5.50% ■ Baht weakened amid uncertainties from Fed moves and Thai internal factors pushing THB above 35.00 per USD late-June ■However, at 2023 year-end, Baht could reach 33.50-34.00 per USD, as the Thai economy continues to recover, thanks to strong support from tourism recovery, amid some pressure from slowed exports. KBank Capital Markets Research (as of July 5, 2023) บริการทุกระดับประทับใจ Possible Impacts to Thai Economy ■Thai economy, especially export sector, is increasingly tilted to the downside amid increasing global economic risks ■Fading government stimuli will weigh on Thai economic recovery in 2023 ■Domestic consumer spending is expected to weaken amid persistent inflation and fading pent-up demand ■Strong rebound in tourism sector will continue to be the main driving factor for the Thai economy, while export slump will put downward pressure on the Thai economy ■ BOT expressed a hawkish tone for its gradual hiking path, amid decreasing inflation ■ BOT's interest rate is expected to be 2.25% at the end of 2023. ■Recently, Baht has moved correlatedly with gold price, while the weakening of the Yuan and Yen put pressure on Asian currencies ■Looking forward, the continuous recovery of Thai tourism will bring the current account back to surplus in 2023, while pressure from energy prices has lessened, amid concern over the recession 6#4K KASIKORNTHAI 1Q23 Financial Performance Consolidated ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Notes (1Q23) NIM increased YoY, mainly due to higher yield in line with interest rate 3.3 3.45% trend, despite higher cost of fund from interest rate and FIDF. More than 90% of interest income received in cash. Y2022 Actual 1Q23 Actual Y2023 Targets NIM 3.33% 3.46% -1.20% YTD Loan Growth 3.03% 5-7% 0.28% YoY Net Fee Income -6.89% -8.13% YoY Flat Growth¹) YTD loans decreased from SME, Credit Cards, Personal loan, and from NPL outflow management, while Regional and KLeasing increased. Cost to Income 43.15% 42.50% Ratio²) Credit Cost per 211 bps 205 bps year (bps) Low to Mid-40s Net fee income decreased YoY from high-base Brokerage and Fund Management Business in 1Q22 in line with market conditions. Cost to income decreased YoY as net total income increased, despite higher operating expense (mainly due to one-time employee expenses for cost of living subsidy measures). Focus on cost management and productivity improvement, with new investments for future growth. In 1Q23, we detected deterioration, worth 6% of ECL, in a single large 175-200 bps corporate loan. We took immediate action, covering the potential loss with management overlay. The level of management overlay temporarily dropped but stayed within our 15-20% comfort range. NPL Ratio 3.19% (Gross) ³) 3.04% < 3.25% ROE4) ROA 7.38% 0.86% 8.43% 1.01% N/A N/A In 2023, the credit cost will hold in the range of 175-200 bps. We expect extra effort will be needed to keep credit cost within this range because of our ongoing, proactive asset quality cleanup efforts and this one-time deterioration in a large corporate loan. However, credit cost may hit the upper bound of the target range or slightly exceed it, rising to no more than 210 bps. 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 K KASIKORNTHAI Y2023 Financial Targets บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 Notes (Y2023) NIM rising due to higher interest rates and small ticket size lending strategy, despite higher FIDF contribution. Loans increase from regional expansion strategy and more corporate lending; continued focus on quality using effective data analytics capability. Net fee income may decrease from lower conventional transaction fees due to changing consumer behavior; wealth management business continues to expand. Moderate revenue growth; projecting higher potential investment expenses for future growth; continuing cost management and productivity improvements. Credit cost peaked in Y2022. Continue proactive asset quality 175-200 bps clean up and prudent financial policy; credit cost will remain high but gradually drop in Y2023. The credit cost will cover future uncertainties, in line with global economic circumstances and business strategy. Credit Cost per year (bps) 211 bps NPL Ratio (Gross)*** ROE**** 3.19% < 3.25% ROA N/A N/A 7.38% 0.86% Note: *Net Fee Income Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 7 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 Cleaning up balance sheet for sustainable normalization will continue Global and local economic risks post challenges for our prudent policy Total loan and AIR Bt2,481bn Bt2,511bn % Comprehensive 6.9% 7.0% %NPL coverage debt restructuring Stage3 Bt93bn 3.7% Stage3 Bt89bn 3.6% Stage2 Bt188bn 7.5% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Total loan allowance (ECL) Bt133.5bn (5.3% of loan and AIR) 154% Bt128.1bn (5.2% of loan and AIR) 157% Stage3 Bt40.8bn %ECL 43.8% Stage3 Bt38.6bn %ECL 43.5% Stage2 Bt181bn 7.3% Stage2 Bt46.1bn %ECL 24.5% Stage2 Bt43.3bn %ECL 23.9% Stage1 Bt2,230bn 88.8% Stage1 Bt2,211bn 89.1% Stage 1 Bt46.6bn %ECL 2.1% Stage1 Bt46.2bn %ECL 2.1% Dec 2022 Mar 2023 Dec 2022 Mar 2023 บริการทุกระดับประทับใจ ■ K KASIKORNTHAI Balance Sheet Cleanup Updates ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Over the past 4 quarters, total stage2 and stage3 loans declined Bt42bn, and total loan allowance declined Bt20bn. %ECL to Loan and AIR 6.0% 5.6% 4.9% 5.3% 5.2% Total Loan Allowance (ECL) Bt148bn Bt141bn Bt134bn Bt128bn Bt121bn Loan and AIR (Stage 2 & 3) Bt312bn Bt300bn Bt275bn Bt282bn Bt270bn Stage2 Bt205bn 8.3% Stage3 Bt108bn 4.4% Stage2 Bt190bn 7.6% Stage3 Bt110bn 4.4% Stage2 Bt187bn 7.5% Stage3 Bt88bn 3.6% Stage2 Bt188bn 7.5% Stage3 Bt93bn 3.7% Stage2 Bt181bn 7.3% Stage3 Bt89bn 3.6% Sep 2022 Dec 2022 Mar 2023 Mar 2022 Jun 2022 Note: Cleanup methodology covers discounted pay-off with borrowers, write-offs and NPL sales บริการทุกระดับประทับใจ 11 12#7K KASIKORNTHAI Composition of Growth: Loans by Business Moderate loan growth momentum in line with full-year target Loan Portfolio Structure Consolidated ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio (Bt bn) 2,800 2,421 2,495 2,465 Amount (Bt bn) Dec 22 1Q23 1Q23 Y2023 Mar 23 Loan Growth Yield Range Loan Growth Target 2,245 2,400 (%) (%) 2,002 2,000 34% 36% 36% Corporate Corporate Loans 880 876 (0.5%) 2-4% 36% 1,600 35% SME Loans 780 763 (2.2%) 5-7% ■SME Retail Loans 703 690 1,200 33% 31% (1.9%) 5-7% 31% 34% 33% ■Retail Other Loans 132 136 3.8% 800 Others Total Loans 1) 2,495 400 28% 28% 29% 28% 28% 2,465 (1.2%) 5.5% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 3% 4% 5% 5% 2019 2020 2021 2022 1Q23 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 1Q23 WBG loans were Bt85bn, increased 4.2% YTD, and 69.0% YoY 1Q23 2023 Outlook Corporate Loans SME Loans Retail Loans Loan Definition ■ Loan portfolio mainly grew from short-term loans in financial institutions, healthcare, petroleum and petrochemicals as well as consumer goods industries. ■ SME loans outstanding was decreased due to balance sheet clean up as well as to control and mitigate credit risk from viable customers ■ However, KBank still provided various product offerings matched to customers' needs with risk-based offerings ■ Unsecured loans outstanding decreased due to seasonal repayment of Credit Card which hiked at year end. However, spending showed improvement in tourism, restaurant, and consumer 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 1Q23 ■ 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 ▪ Use data analytics to expand credit opportunities in specific industries ■ Provide various product offerings matched to customer needs with risk-based pricing ■ Promote business growth of healthy SME customers and accelerate supports to at-risk SMEs to maximize recovery ■ Maintain lead position in consumer market and be "1st in mind" to our customers and prospects ■ Grow prudently in line with market situation ■ Focus on intelligent lending by using data analytics to offer products and promotions aligned with customers' needs ■ Focus on acquiring "small-pocket" customers with acceptable risk and proactive monitoring to manage loan portfolio quality ■ Focus on generating additional revenue from existing credit customers 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. K KASIKORNTHAI Net Interest Margin March 2023 (Consolidated) NIM ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Yield on Earnings Assets and Cost of Fund (%) (%) 5 8 4 3.31 3.27 3.21 3.33 3.46 5.49 Yield on Loans 6 5.21 I 4.82 4.97 4.71 3 4.19 3.83 4 3.64 3.79 4.21 Yield on Earnings Assets 2 1 0 2019 2020** 2021 2022 1Q23 2 1.23 0.78 1.01 0.59 0.62 Cost of Fund 0 1.14 0.71 0.54 0.53 0.87 Cost of Deposits* 2019 2020" 2021 2022 13 1Q23 ■NIM was 3.46% in 1Q23, increased YoY, mainly due to higher yield in line with interest rate trend, despite higher cost of fund from higher rate and the resumption of FIDF fee to its normal rate in January 2023. More than 90% of interest income received in cash. 2019 2020 2021 2022 1Q22 1Q23 4Q22 1Q23 NIM (%) 3.31 3.27 3.21 3.33 3.19 3.46 3.62 3.46 Yield on Earnings Assets (%) 4.19 3.83 3.64 3.79 3.61 4.21 4.14 4.21 Yield on Loans (%) 5.21 4.82 4.71 4.97 4.76 5.49 5.37 5.49 Cost of Fund (%) 1.23 0.78 0.59 0.62 0.57 1.01 0.71 1.01 Cost of Deposits (%), incl DPA 1.14 0.71 0.54 0.53 0.52 0.87 0.58 0.87 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 March 2023 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio (Bt bn) 163.35 173.26 200 160.49 50% 154.89 (+3%) (-3%) (+5%) (+6%) 40% 36% 150 23% 1 30% 36% 30% 27% 27% I 30% 23% 23% 25% 21% 22% 19% 100 1 46.57 20% 17% 50 64% 70% 73% 77% 1(+15% YoY) 10% 25% 75% 0% 0 2019 2020* 2021 2019 2022 1Q23 Net interest income Non-interest income Non-interest Income Other operating income ■Fee and Service Income - net (Bt bn) 70 57.80 (+2%) 60 13% 45.87 43.96 50 (-21%) 4% 40.26 (-4%) 3% (-8%) Dividend Income 5% 40 64% 30 72% 80% 2020* 2021 2022 1Q23 Non-interest income ratio Net Fee income ratio Net Fee Income 33.00 35.32 32.88 (-4%) (-10%) (+7%) (-7%)! (Bt bn) 36.74 40 Share of profit from investments on equity method 30 82% 11.70 Gain on investments 20 20 5% (+32% YoY) 0 Gain on financial instrument measured at 15% 10 5% 3% FVTPL 10 8% 69% 9% 14% 18% 13% 0.3% (Gain on Trading and FX transactions-Old) 13% 31% Net earned premium - net 0 0 -0.3% 0.4% -2% -0.3% 2019-1%2020 -4%2021-8% 2022 1Q23.12% 2019 8.11 (-8% YoY) 2020 2021 2022 1Q23 ■1Q23 non-interest income accounted for 25% of total net operating income and net fee income accounted for 17%; non-interest income increased 32% YoY, mainly due to higher mark-to-market financial instruments measured at fair value through profit or loss according to market conditions and net premium earned - net, in line with insurance business 1Q23 net fee income decreased - 8% YoY from high-base brokerage and fund management business in 1Q22 in line with market conditions -10 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 March 2023 (Consolidated) Cost to Income Ratio ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Cost to Average Assets Ratio (%) (%) 50 45.32 45.19 43.49 43.15 6 42.50 40 4 30 2.26 2.01 1.83 1.79 1.87 20 2 10 0 0 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23 1Q23 cost to income ratio was 42.50%, decreased YoY from net total income increased, despite higher operating expense (mainly due to employee expenses from cost of living subsidy measures which were one-time expenses). ■Focus on cost management and productivity improvement, with new investments for future growth. 2019 Cost to Income Ratio (%) 45.32 2020 45.19 2021 43.49 2022 1Q22 1Q23 4Q22 1Q23 43.15 42.82 42.50 42.60 42.50 Cost to Average Assets Ratio (%) 2.26 2.01 1.83 1.79 1.69 1.87 1.99 1.87 15 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 16#9K KASIKORNTHAI Asset Quality and Expected Credit Loss (Provision) March 2023 (Consolidated) Expected credit loss (Provision) (Bt bn) During 1997 Asian Crisis* 160.6 159.1 141.4 148.5 149.2 127.1 134.5 130.0 111.0 154.3 148.6 131.8 130.9 Coverage Ratio During 1997 Asian Crisis* (%) 51.9 150 43.5 41.8 40.3 33.8 32.5 34.0 100 26.4 12.7 48.8 14.2 50 34.7 6.7 7.3 8.4 11.7 25.430.034.2 2.3 0.7 1996 1997 1998 1999 2000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1023 1996 1997 1998 1999 2000 54 50.6 49 44 44.1 39 34 29 24 19 16.8 Note: Provision referred to Impairment Loss on Loans and Debt Securities; from January 1, 2020 onwards based on TFRS9, provision refers to Expected Credit Loss During 1997 Asian Crisis* 888 (%) 42.00 30 40 40 31.70 723 23.50 NPL Ratio and Credit Cost 156.7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1923 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK I Asset quality is to be closely monitored and constantly reviewed. NPL ratio in 1Q23 was at 3.04%, with coverage ratio of 156.68%. INPL ratio dropped YoY from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. ■1Q23 credit cost improved QoQ but increased YoY; continuous prudent consideration of the uncertain economic outlook and business strategy. (bps) 900 NPL ratio Credit cost 700 30 500 287 168 204 239 205 175 174 173 211 205 300 15.90 10 10 44 66 64 66 5.10 NPL was peak at 42.3% in 1Q99 96 85 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 3.04 100 0 -100 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2021 2022 1Q23 NPL Ratio by Business Corporate Business SME Business Retail Business*** 2017 2018 2019 2020 2021 2022 1Q23 <2% <2% <2% <2% <2% <2% <2% -5% 5% 6% <7% <7% <7% <7% -4% 4% 4% <5% <5% <5% <5% 20 20 Notes: * Data in 1996-1997 is KBank only ** The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). *** NPL ratio in retail business, excluding 180 dpd (days past due) of credit card and consumer loans for peer comparison K KASIKORNTHAI ROA and ROE March 2023 (Consolidated) ROA บริการทุกระดับประทับใจ (%) ROE** ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (%) 24 2.5 20 2.0 16 1.5 1.20 0.98 1.01 12 9.90 1.0 0.85 0.86 8.44 8.43 7.10 7.38 8 0.5 4 0.0 0 2019 2020* 2021 2022 1Q23 2019 2020 2021 2022 1Q23 ROA (%) ROE (%) 2019 2020 2021 2022 1Q22 1Q23 4Q22 1Q23 1.20 0.85 0.98 0.86 1.09 1.01 0.30 1.01 9.90 7.10 8.44 7.38 9.30 8.43 2.63 8.43 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) March 2023 (Consolidated) Bank only Basel III KASIKORNBANK FINANCIAL CONGLOMERATE* Basel III (%) (%) 18.52 17.74 17.83 18.02 18.13 21.0 19.62 18.80 18.0 3.58 2.80 2.41 15.0 068-14.94 1.10-15.42-03-15.96-10-16.06 2.07 2.07 18.0 3.43 2.67 18.77 2.28 18.81 18.90 1.97 1.97 085-16.13-10-16.49-07-16.84-08-16.92 15.0 12.0 12.0 9.0 9.0 14.94 14.26 14.32 14.93 15.02 16.19 15.48 15.46 15.86 15.94 6.0 6.0 3.0 3.0 0.0 0.0 2019 2020** 2021 2022 1Q23 2019 CET1 AT1 Tier1 Tier2 2020 ** 2021 CET1 2022 1Q23 AT1 Tier1 ■Tier2 Capital adequacy remains sufficient through the changing economic environment and to support business growth; maintained adequate Tier 1 ratio, as required under the Basel III and new requirements. 2019 2020 2021 2022 1Q22 1Q23 4Q22 1Q23 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 17.44 18.13 18.02 18.13 14.94 14.94 15.42 15.96 15.33 16.06 15.96 16.06 KASIKORNBANK FINANCIAL CONGLOMERATE* CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period 19.62 16.19 18.80 16.13 18.77 16.49 18.81 16.84 18.34 16.35 18.90 16.92 18.81 18.90 16.84 16.92 Note: * KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisted of KBank, K Companies and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd. and other subsidiaries within the permitted scope from the BOT's to be financial conglomerate. Under Bank of Thailand regulations, net profit in the first half of the year is to be counted as capital after approval by the Board of Directors as per the Bank's regulations. Net profit in the second half of the year is also counted as capital after approval of the General Meeting of Shareholders. However, whenever a net loss occurs, the capital must be immediately reduced accordingly. ** The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). 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 40 32.14 3.00 27.00 3.0 2.50 2.50 2.50 2.50 30 20 2.0 10 1.0 0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Interim Dividend 32.80 34.43* 27.83 29.40 26.96 28.75 23.73 23.91 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 19 Dividend policy: both operating results and long-term returns to shareholders are taken into consideration in determining dividend payments, in order to ensure a sustainable and adequate capital level through the changing economic environment, the ongoing adoption of Basel III and new requirements. Dividend Per Share (Bt) 2009 2.50 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Dividend Payout Ratio (%) 42.49 2.50 32.14 2.50 27.00 3.00 22.12 3.50 4.00 4.00 4.00 4.00 4.00 5.00 2.50 3.25 4.00 22.32 22.51 27.83 26.96 32.80 29.40 34.43 23.73 23.91 28.75 Note: * The Board of Directors' Meeting No. 1/2020 held on 30 January 2020 has approved the share repurchase project for financial management purposes of KASIKORNBANK, not exceeding totaling 23,932,600 shares, equal to 1% of the total paid-up capital of the Bank and the maximum not exceeding Bt4,600mn, which was conducted through the Stock Exchange of Thailand during 14-27 February 2020, and the Bank had the resale period during 31 August - 16 September 2020. By the end, the Bank was unable to resell as planned. To comply with laws and regulations, the Board of Directors' Meeting No. 11/2020, held on 18 September 2020, resolved to approve the decrease in paid-up capital of the Bank by writing off the unsold amount of the repurchasing shares in full. The Bank of Thailand has also approved the decrease in paid-up capital accordingly. - In 2020-2021, the BOT suspended the banks' interim dividend payment of Y2020 and allowed to pay dividend for Y2020 and Y2021 not exceed 50% of net profit for the previous year. - On June 2022, the BOT announced to remove the dividend payout ratio limit. - Dividend payout will be calculated based on dividend divided by net profit attributable to shareholders net of dividend on other equity instrument including additional Tier 1 instrument. บริการทุกระดับประทับใจ 20 20#11K KASIKORNTHAI Summary ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■The K-Strategy: Customer Centricity remains our core philosophy with purpose to "Empower Every Customer's Life and Business" Balanced Growth: loans to grow carefully in line with economic conditions and expand to regional market; appropriate liquidity maintained; asset quality is to be 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 21 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 (+2.1%) 21.7 21.3 19.5 17.7 16.0 16.5 15 2018 2019 2020 2021 2022 1Q23 * Customers in Retail Business account for 92%, SME Business 8%, and Corporate Business less than 1% of customer portfolio 100 15 225050 31,750 35,000 30,000 20,710 25,000 14,516 20,000 8,477 12,325 15,000 10 20.0 5,188 17.1 5,990 14.4 10,000 12.1 10.0 5,000 17.7 20.6 0 2018 2019 2020 Total Users 2021 2022 . 1Q22 Number of Transactions (RHS) 1Q23 ** Active users defined as minimum of 1 Login per month; 73% active users as of 1Q23 Net Promoter Score (NPS)*** (#1 among Banks in Thailand) 63 50 35 0 2020 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 888 Democratize Penetrate Investment & Insurance Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT 25 25 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Company Structure by Investment Purpose Key Subsidiaries* Credit Wealth KLeasing Payment KAsset KASIKORN Global Payment (KGP) KFactory & Equipment KSecurities MTL Digital Asset & Beyond Banking KX (Venture Builder and Venture Capital Fund) KUBIX (ICO Portal) Regional Business KASIKORNTHAI BANK (Lao PDR) KASIKORNBANK (CHINA) KVF (KASIKORN VISION FINANCIAL) Bank Maspion (67.68%) KVISION KTech (China) KBTG Vietnam JV/Investment** (Partner Network & IT Capability) Note: KLINE KBAO JK AMC KAPTURE ONE*** NGERN HAI JAI*** Key subsidiaries as of 1Q23 ** Not include investment through venture capital e.g., wealth-related company and E-wallet related company *** Set up during 2Q23 บริการทุกระดับประทับใจ 26#14K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Investment for Financial Inclusion by Adopting Challenger Bank via Technology & Partnership Aimed at boosting access to banking services among Thailand's unbanked and underbanked population as well as very small businesses and the self-employed INVESTMENT IN EMERGING TECHNOLOGIES / COLLABORATIONS/ ACQUISITIONS These substantial investments will secure KBank significant additional capabilities to fulfil mission to broaden access to banking. 'FIRSTS' THREE TRANSFORMATIONAL 'Challenger Bank' Adopting 'challenger bank' to transform the way banking is done and people's expectations of their bank NEW SYSTEMS & PROCESSES FOR SIMPLER & FASTER LOAN CONSIDERATION KBank has already been trialing multiple new systems and processes in preparation for this strategic push. LINE Buy-Now-Pay-Later Loans for those who are self-employed or have no documents to prove income Loans Fairer for Micro Enterprises Using interviews and other technology-assisted assessments to approve loans Social Media Banking Loans via LINE BK BROADENING ACCESS UPCOUNTRY THROUGH MOM-AND-POP STORES KBank is working with a major retail group to give upcountry mom-and-pop store operators easier access to loans without collateral, as well as providing loans to the stores' customers. บริการทุกระดับประทับใจ KASIKORNTHAI Growth Strategy: Dominate Digital Payment K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 27 27 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 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 Regional Payment Enrich CLMV customers' cross border payment experience with simple and cost-efficient solution by leveraging KBank local channels K PLUS Key Achievements in 1Q23 ⚫ K PLUS user continuously grew 17% YoY to 20.6 million users • Real time, full payment covering all major corridors • Increase engagement and stickiness by embedding in customer everyday spending activities Merchant Solution for High Growth Segment • Rebranding "K SHOP Get Money Easily and Surely" • Uplifting merchant capability: K SHOP Payment Link, Installment Cross Bank Trustworthy Business Payment Solution • Cross Border Fund Transfer to major corridors on K BIZ for small customers Uplifting payment capability: bulk payment, real-time payment API QAPI ช้อป า นกน้อย ต้องใช้ DOD her ได้ทุกธนา Konk โอนจ่ายง่าย ได้หลายบัญชี malo lunanides I BIZ KPoint K-market บริการทุกระดับประทับใจ 28 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 1Q23 New-to-KBank Credit Customer • • 90K newly acquired credit customers Bt13bn new booking amount (26% of total new booking) from new-to- KBank credit customer Self-apply channel on K PLUS for unsecured credit • 950K applications/month including both commercial and consumer products Bt37bn new booking amount from existing customer Bt5bn new booking for "Green" Bt500mn 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 Comprehensive Product Offerings o Personalized/customized product offerings to match customers' profiles with competitive return and benefits o Product office transformation for advisory and product Sale & Service Model Enhancement with Digital Technology Enablement 。 Strengthening RM capability with wealth practitioners and wealth-advisory platform o Developing digital wealth app for integrated product suites with advisory contents and holistic portfolio 。 Enhancing service and support through K-Wealth call center K-Wealth Brand Strengthening o Top of mind in Wealth Management Key Achievements in 1Q23 Significant Mutual Fund AUM Growth by Bt31bn or 3.2% YTD growth, which is higher than industry 0.7%. Main driver is sales volume of Term Fund due to attractive government bond yield Multi-Asset/Balanced Fund AUM grew by 39% YTD as we recommend this fund type as a core product to enhance returns while coping with a volatile market New Mutual Fund customers grew by 3% YTD from Y2022 and over 90% from K PLUS Launched Varieties of Affordable Insurance matching needs of each customer segment • Middle Income Customers • Life Insurance high coverage term ending at Age 70 . Life Insurance high coverage + 81 Critical Illness Kank Rider for 35 Critical Illness starting at Bt2,500 for 500K coverage High Net Worth and Affluent customers Endowment 11/3 for goal-based saver SME customers • SME Loan Credit Protection plus Critical Illness จนราย Davil PLUS บริการทุกระดับประทับใจ 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 China Strategy AEC A B 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 Key Achievements in 1Q23 We have successfully established KBank footprints in every country in the region and offer international standard financial solutions to all customer segments KBank China became the biggest Thai bank in Shenzhen in terms of assets • KBank Vietnam - Ho Chi Minh City (HCMC) branch was established in November 2021 with an aggressive customer acquisition execution resulting in more than 450K retail customers on K PLUS by 1Q23 KBank Cambodia Phnom Penh branch captured local corporate customers and became the biggest Thai bank in Cambodia in terms of loan asset size • KBank in collaboration with Bank Maspion Indonesia successfully launched QRIS – a bill payment service for merchants - as the first product to be introduced after the increase of its shareholdings to 67.68% Acquiring local SME and individual customers via partners' platforms Business Retail Acquiring local SME and individual customers via transactional banking channels and partners Business Retail Supply chain financing Retail online lending K-Cyber Banking EDC Ecosystem Partners K+ ATM/ Agent C Disruptive Play: Grow digital lending with more local partners Capturing credit needs of individual customers with high-yield credit via E2E online credit tech Better ME Better SME Digital Lending Ecosystar Note: EDC Electronic Data Capture Machine E2E Enterprise to Enterprise QRIS Quick Response Code Indonesia Standard บริการทุกระดับประทับใจ 31 37 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Penetrate Regional Market: Asset-Light Regional Expansion into AEC+3 ■Growth in regional markets: strategically focusing on AEC+3 markets, KBank pursues an integrated regional operating model: physical footprint, digital platform, and regional partnerships Physical Footprint Note: South Korea China Lao PDR. Myanmar Cambodia Japan Vietnam Indonesia Two subsidiary banks: KASIKORNTHAI BANK (Lao PDR) with two branches in Ponesinuan and Lane Xang, KASIKORNBANK (CHINA) with three branches in Shenzhen, Chengdu, Shanghai and one sub-branch in Long Gang - Four international branches: Cayman Islands, Hong Kong, Phnom Penh and Ho Chi Minh City - Six representative offices: Beijing, Kunming, Tokyo, Yangon, Hanoi and Jakarta One strategic partner: Maspion Bank in Indonesia; KASIKORN Vision Financial Company Pte. Ltd. (KVF) signed a Conditional Sale and Purchase Agreement (CSPA) to purchase 67.50% of shares in Bank Maspion Indonesia from 9.99% current holding, which has finalized on December 9, 2022 (KBank and KVF together had held a total of 40% of shares in Bank Maspion Indonesia since October 28, 2022) - Global partners with 80 banks in 15 countries: 50 Japanese partner banks; 10 Chinese partner banks; 1 Hong Kong bank; 3 Korean partner banks; 12 ASEAN partner banks (in Vietnam, Indonesia, Lao PDR, Cambodia, Philippines, Brunei, Malaysia and Singapore); 3 European regional banks (in Germany and Italy) and 1 Indian Bank 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 con mask VietinBank a man na A bank BCA BANK MASPION AYA Bank KBZ BANK Hana Bank + 靜岡銀行 HICH BANK S 中国民生银行 CHUGOKU BANK △ 愛知銀行 ...and others 型 二百十四旅行 Maybank 32 22#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 1Q23 #1 mobile banking in Thailand: 20.6 million total K PLUS users with 73% active rate Partners Partners in selected ecosystem (University and Healthcare, E-commerce & Lifestyle platforms, E-wallet & Payment, and Joint Venture - Lending, Debt collection and Asset Management) BaaS " KBank open API (QR payment, bill payment, slip verification, inward remittance, facial recognition, RP proxy, information sharing service via K+, pay with K+, KGP merchant payment platform and Fund Transfer) #1 NPS 2022 among banks in Thailand 819 branches and 10,924 ATMs and CDMs nationwide Over 220,000 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 SME Corporate Customers Retail eWallet and Payment Partnership CONNECT Grab Blue f YOUTRIP LINE MAN Wong nal rabbit LINE Pay 支支付宝 ALIPAY WChale University and Healthcare Chula Joint Venture nwo พริมปิ LINE for Co-Lending through LINE Platform E-Commerce & Lifestyle Platform/Co-Lending through Partners' Platform Laz Thel Oะวันออ TD for Co-Lending through Carabao Conglomerate channels jmt for Debt Collection and Asset Management Business FOMOCOUN Ооквее Venture Capital* Grob N Jitta aspire digio NIUM HORGANICE Sendo for stays powoon EBke KiotViet SEARCH Rate DECENTRALIZES Roboth P cryptomind A alchemy САЙРО Рама FoodStory O FORWARD THINKERINT Note: Beacon Venture Capital, a wholly-owned venture capital fund of KBank, invests in companies and startups, via: Direct investment: a total fund size of USD185mn to invest in early to growth-stage technology startups covering not only FinTech but also consumer internet and enterprise technology, aiming to leverage new technology from startups to support KBank's businesses and ESG aspirations. However, the logos above only show a portion of our investment. Indirect investment: investments through VC Funds to enable KBank to leapfrog into the world arena and stay abreast of innovative technologies and business models in other regions, e.g. partnered as an LP with VC funds managed by Integra Partners (known as Dymon Asia Capital), Vertex Ventures, NYCA, Jerusalem Venture Partners, Pantera Capital, China Renaissance, Openspace Ventures, Do Ventures and StormBreaker. Alchemy coinvestment with Pantera บริการทุกระดับประทับใจ 34 33 33#18K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Harmonized Channels: Domestic Channels and No. of Transactions Branch E-Machine (ATM/CDM**) (-70) (+42) (-29) I (+47*) (-21) (-15) (-5) (-5*) 886 10,973 10,981 10,911 10,953 860 10,924 1 11,000 839 824 819 819 2019 2020 2021 2022 1Q23 2023T Mobile Banking Users (mn) 2019 2020 2021 2022 1Q23 2023T ** Cash Deposit Machine Number of Transactions** *** K+ 2.7bn 3.8bn 5.4bn 7.5bn 2.2bn (+3.9*) 4% 2% 1% 1% Branch 1% (+2.9) (+0.6) 20% 13% 10% 8% E-Machine (+2.7) 28% Mobile Banking 23.9 20.0 20.6 17.1 14.4 68% 78% 86% 89% 91% 12.1 2019 2020 2021 2022 1Q23 2023T * Compared to Year-ended K KASIKORNTHAI Domestic Channels New KBank Branch (Hybrid Branch) KBank 2019 2020 2021 2022 1Q23 *** 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 1Q23 Key Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK B0.00 1.5% Saving Accounts: Special Rate Accounts: Debit Cards: Credit Line Accounts: 7.0 mn 180K 3.1 mn 582K Line BK Platform Users: 5.4 mn Outstanding Loans: 17.7 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 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 18.1 bn 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 INVESTMENT Acquire and utilize payment • Identify & Acquire Wealth Customers data for customer understanding Support business use cases: marketing, credit risk, and fraud prevention Best experience to customers to manage & 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 ■ Purposeful & Practical Leadership ■Trusted leadership team ■ Differentiated reward to drive performance & attract talent ■ Total reward redesign to drive transformation 5 Purposeful Data & Practical Leadership Organization Designed for Growth CUSTOMER Performance EMPOWER- MENT -Driven Rewards 3 ■Strategic-driven structure with multi- disciplinary teams ■ Effective resource allocation 2 Effective New Way of Work Aspiration Customer Obsession More & Meaningful Innovation ■Fast Execution with Flexibility ■ Excellent Collaboration ■ Best Place to Work, Learn, and Lead ■ Winning employee value proposition ■New way of hiring to attract new talent " ■ Re-skilling & up-skilling via integrated development solution Integrated Development Technology Adopting agile way of work and encouraging innovation ■ Enabling hybrid work-mode บริการทุกระดับประทับใจ K KASIKORNTHAI KASIKORN BUSINESS - TECHNOLOGY GROUP Company Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 39 39 กสิกรเทคโนโลยีกรุ๊ปเซเครเทเรียต กสิกร แล็บส์ #KASIKORN LABS ■Technology Research and Innovation Labs Pioneer new possibilities KASIKORN TECHNOLOGY GROUP SECRETARIAT กสิกร ซอฟต์ 开票软件 KASIKORN SOFT ■ A Bridge between KBank and KASIKORN BUSINESS - TECHNOLOGY GROUP ■ Group's Control Structure Enable Seamless Integration ■ Software Development to Support Business Requirements and Innovation Generate Business Value กสิกร อินฟรา KASKORN INFRA ■ Control Infrastructure Resources for the Change, the Run, and the Gone Ensure Service Continuity กสิกร เอก 开都爱码思有限公司 KASKORN X ■ Venture Builder and Venture Capital focusing on Web 3.0 New S-Curve Factory Note: KASIKORN BUSINESS - TECHNOLOGY GROUP established with 5 companies, as a wholly-owned subsidiary of KASIKORNBANK; included in the KASIKORNBANK FINANICIAL CONGLOMERATE, as approved by the BOT in October 2015 Registered capital in each company at Bt5mn, except for KASIKORN SERVE at Bt10mn KASIKORN INFRA changed names from KASIKORN PRO COMPANY LIMITED; established in October 2015 KUBIX is a KX's subsidiary; established in March 2021 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 1Q23 Support Running the Bank " IT Project Delivery Excellence +23 New IT Projects Delivered in 1Q23. Drive and manage IT project portfolio for on-time and on-budget delivery IT Brilliant Basics 190+ 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 BitSight Rating scored at 800** Regional Expansion Support KBank regional expansion and apply innovation "From" and "To" regional Create the Future of Finance 2 Regional Development Sites (Vietnam, China) 2 Million users from Platform Businesses " Breakthrough Innovation kubix Scale up existing innovation product and deliver business value/cost avoidance using advanced tech capabilities Raised Bt265mn from Destiny Token Deal The New S-Curve Explore and create new S-Curve product/investment in the area of Decentralized Finance (DeFi), Web 3.0 and metaverse that goes Beyond Banking coral bigtin Sold 162 NFTs Arts (130MB GMVs) via 'Coral' Platform KXVC Launched 'Bigfin', an asset investment analysis platform First investment deal with "Forward" - Thai Blockchain-DeFi startup KASIKORN BUSINESS - TECHNOLOGY GROUP established with 5 companies, as a wholly-owned subsidiary of KASIKORNBANK; included in the KASIKORNBANK FINANICIAL CONGLOMERATE, as approved by the BOT in October 2015 บริการทุกระดับประทับใจ 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 3. World Class Top Tech Talent Acquisition of Marco Technology Co., Ltd. ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MongoDB APAC Innovation Award KBTG 8 marco KBTG AME MONGODB 2023 APAC INNOVATION AWARD MINNER Customer-Focused KBTG KADEN MongoDB. APAC INNOVATION AMARD WINNER Customer-Focused make KASIKORN SOFT Co., Ltd., a software development subsidiary under KBTG, has successfully completed a deal to hold 75% total shares of Marco Technology Co., Ltd. Marco Technology is a well recognized expert in Quality Management, Software Development and IT Operations. This acquisition will support Marco Technology to strengthen their operations to KBTG/KBank's standards and boost their capabilities in new solution research and technology. KBTG won the MongoDB APAC Innovation Award in the Customer-Focused category for MAKE by KBank. This money management assistant created in the labs of KBTG received praise from MongoDB for utilizing the company's technology to develop the platform. บริการทุกระดับประทับใจ K 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 an online retail lending product with instant approval for KASIKORNBANK (CHINA) CO., LTD. Became a member of the Shenzhen Financial Technology Association. This move is intended to advance innovation in the AEC+3 market via collaboration with large organizations in the fintech industry, such as Alipay, Huawei, Tencent, and Ping An 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 Internet banking, digital lending and funds transfer services with other financial institutions, both private and public Officially launched K PLUS Vietnam in March 2022, with key features such as bill payment, top up, create favorite transaction, and statement request, as well as new and enhanced features planned to deploy on a monthly basis Officially opened KBTG Vietnam (KBTGVN) office in Ho Chi Minh City with a mission to empower KBank as an IT Hub and create new S-Curve innovations in Vietnam Set Inology Ogation In-utheast A KAG VIETNAM Indonesia Developed QRIS (Quick Response Code Indonesia Standard) for PT Bank Maspion Indonesia. QRIS supports payments from any mobile banking application and electronic wallet service provider with greater convenience, speed and security. This is the first service developed by KBank after increasing our shareholding ratio in PT Bank Maspion Indonesia Tbk to 67.68% in 2022 บริการทุกระดับประทับใจ KBTGVN Office 43 44#23K KASIKORNTHAI KBTG: Create the Future of Finance Scale-up Innovation Products & Partnerships Innovation MAKE Khunthong ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Launch New S-Curve Products kubix Health and Insurance Ecosystem เมืองไทย ประกันภัย Tk MLWIC THG 9 KX Vaccine Registration & Insurance Lead In house Al Highlights PAYLATER Marketing & Credit Intelligence Process Automation Facial Technology CeFi Be the Digital Asset Platform of Choice coral Defi Fully operated KX as 'Venture Builder' and established 'KX Venture Capital (KXVC)' as a global Web3 & Deep Tech Venture Investment Launch and scale Coral NFT Marketplace to be a top player Launched 'Bigfin' to become top-of- mind investor tool bigfin Note: CeFi = Centralized Finance; DeFi = Decentralized Finance; NFT = Non-fungible Token บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Creating the Future of Finance - Breakthrough Innovation Scale-up Innovation Products & Partnerships 1.2mn Users KhunThong Social chatbot helping friends settle expenses within a chat for a seamless payment experience make A 1.2mn Users MAKE by KBank A mobile banking application designed specifically for a new generation to personalize financial management THG Vaccine Registration (THG) Jointly developed with Thonburi Healthcare Group to serve as a main channel to register for appointments and make advance payment for Moderna vaccination via LINE application COVID-19 Hospitel Management Solution Worked with Praram9 Hospital in creating a registration system for asymptomatic COVID-19 patients in hospitals and those with minor symptoms InsurTech เชีย ไทย ประกันภัย A co-innovation project with Muang Thai Insurance Public Company Limited to build sophisticated Al model for car damage detection as a part of automated car insurance policy approvals. Self-service with car damage detection Al was launched with Progress Multi Insurance Broker (PMIB) in December 2021 Chula Care Application Application for Chula Hospital's patients with multiple services in one app; booking, queuing, and tele clinic services with various and convenient payment options via credit card, mobile banking, or K PLUS KBTG Kampus KBTG KAMPUS EMPOWERises TECHERISH AMPUS Partnership collaborations with national and global academic/ research institutions with the aim to solve Thailand's IT manpower shortage and strengthen Thai tech education ecosystem. Initiatives include tech up-skill/re-skill courses, apprenticeship & university degree co-design, and deep tech co- research with national & global institutes บริการทุกระดับประทับใจ 45 446#24K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Create the Future of Finance - The New S-Curve Launch New S-Curve Products KASIKORN X (KX) KX Incubate, scale, and spin-off new S-Curve businesses in DeFi • Coral coral A non-fungible token (NFT) marketplace platform that comes with artists' authentication system and NFT trading using fiat currencies BigFin A digital asset investment analysis platform with features including running balance and transaction history with manual cost basis entry 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 KXVC FORWARD • KXVC Successfully announced a deal with Forward, a Thai-based startup specializing in blockchain and DeFi. The round was led by RPVAF-1 (PrimeStreet Capital), with participation from Beacon VC, Krungsri Finnovate. MIT Media Lab Member 14 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 K KASIKORNTHAI KBTG Buildings and Awards DA EA Customer-focused KBTG KBTG Main Building Recognition & Awards ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Most Innovative & Sustainable Office Design from Employee Excellence Award in 2022 (Silver) MongoDB APAC Innovation Award in Customer-Focused category for MAKE by KBank for utilizing the company's technology to develop the platform K+ Building K K-Stadium at KBTG Main Building BOX Creative Box for small meetings BELL 05 04 SO Innovation Center K บริการทุกระดับประทับใจ K+ Building: City-based KBTG office with co-working spaces Shared Working Space "Hackathon" Hall 47 48#25• . K KASIKORNTHAI Proactive Risk & Compliance Management Value Enabler Partner with business and provide effective integrated risk solutions Predictive and integrated customer segment-based credit analytics Intelligent fraud management in all key business processes • Effective risk management execution for business partners, 3rd parties Enabling customers for ESG Transformation ◉ Key Capabilities Credit risk analytics & integrated credit portfolio planning & monitoring Enhanced fraud analytics & incident management ■ Customer data protection ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Value Protector Strengthen & secure our business to be resilient and sustainable • Prudent risk-based provision and capital management Early error detection through effective quality assurance and fraud management 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 K KASIKORNTHAI Cyber Security ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Enhancing comprehensive cyber security and IT capabilities; addressing and aligning critical capabilities to fortify cyber security Protect KBank's Cyber Assets & Reputation and Deliver Security, Resilience, & Trustworthiness Vision Statement Customer Promise Protect Customer Assets with KBank Strategy Strategic Capabilities Digital frauds protection for customers Reduce loss of customer due to digital frauds & cyber cri Provide secured services Strengthen cyber resilience capabilities Continues enhance prevention, detection, response & recovery capabilities Advanced 1 Effective Risk 2 Identification Threat Prevention 3 Ensure care & timely response for any cyber incidents Uplift Risk Mgmt for 3rd parties and subsidiaries Continues uplift cybersecurity maturity of subsidiaries, and management 3rd party risks Situation Awareness & Threat Detection 4 Effective Incident Response & Recovery 5 Cyber Hygiene Culture บริการทุกระดับประทับใจ 49 50#26K KASIKORNTHAI Improve Value-Based Productivity E2E Product Offering ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK • Digital onboarding and servicing Sale & Service Optimization Strengthen digital-led sales and service Enhance Sales Opportunities Optimize physical service and human touch • 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 K KASIKORNTHAI บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Business Highlights บริการทุกระดับประทับใจ 51 52 62#27K KASIKORNTHAI Customer Segments Corporate Business Multi-Corporate Business Large Corporate Business Company with annual sales >Bt5,000mn ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Company with annual sales >Bt400mn to Bt5,000mn 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 53 K KASIKORNTHAI Revenue by Business March 2023 (Consolidated) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loans Portfolio structure Non-interest Income Retail Business Corporate (29.6%) Business Average Yield: 5-7% SME Business (32.8%) Average Yield: 5-7% (37.6%) Average Yield: 2-4% Retail Business Corporate Business (37.0%) (42.3%) SME Business (20.7%) * Non-interest income excludes capital market business, treasury business and others Note: Loan portion and loan yield of each customer segment includes loans from the Enterprise Risk Management Division (NPL + Performing Restructured Loans); figures are not comparable with loan data in other pages บริการทุกระดับประทับใจ 54 554#28• K KASIKORNTHAI Corporate Business: Key Performance Multi-Corporate Business Large Corporate Business Medium Business Small & Micro Business High Net Worth Individual ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Affluent Middle Income Mass ■ Aim to be trusted partner to enrich customers' businesses with best-in-class financial services and solutions Provide innovative and multi-sourced fund raising Offer total solutions for collection, payment, and settlement Enhance digital solutions and platforms Main Bank Main Bank Status* at 39% in 1Q23 Key Performance #1 Corporate Bond Underwriting • With 16% market share in 1Q23 #1 Mutual Fund Supervisor ⚫ With 39% market share in 1Q23 30% 50% I 43% 39% 40% 39% 40% 37% 38% 39% 39% 20% 40% 19% 19% 20% 17% 16% 30% 30% 20% 10% (#2) (#3) (#1) 20% (#1) (#1) (#1) (#1) (#1) (#1) (#1) 10% 10% 0% 0% 0% 2019 2020 2021 2022 1Q23 2019 20201 2021 2022 1Q23 2021 2022 1Q23 Source: The Thai Bond Market Association (ThaiBMA) Source: SEC (include PPF, IFF) Note: *Main Bank Status = % of customers in the market who use KBank and its wholly-owned subsidiaries as their main operating bank and/or main savings and investment bank and/or main borrowing bank ** MB = Multi-Corporate Business, CB = Large Corporate Business บริการทุกระดับประทับใจ 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 December 2022 #1 in Market Share by SME loan outstanding 30% 23% 23% 21% 20% (#1) (#1) (#1) 10% 0% 2020 2021 2022 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 56 5 55#29K KASIKORNTHAI Private Banking Group: Key Performance . • • Multi-Corporate Business Large Corporate Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Medium Business Small & Micro Business High Net Worth Individual Affluent Middle Income Mass International comprehensive wealth management services Cooperate with Lombard Odier to raise service and product standards to international levels Provide integrated wealth planning services, advising families on wealth management, continuity, and growth Enhance use of technology to improve client experience Build comprehensive client insights from data-mining #1 Market Share by # of customers •With 36% market share (12,844 customers) Key Performance • Growing AUM Bt765bn AUM in 1Q23; growth -1.8% in 1Q23 AUM Breakdown: Investment 60% and Deposit 40% I (Bt bn) 37% | 36% 800 36% 35% 1 35% 35% 35% 34% 34% (#1) 34% 750 717 700 33% 2018 2019 2020 2021 2022 1Q23 Source: Private Banking Group (market share by number of customers) ■Focus Customers (Type of Customer): 788 775 779 765 650 2019 2020 2021 2022 1Q23 ➤ 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 57 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK • 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 outs Top 3 among commercial banks with 8.1% market share in 2022; steady growth and maintain good portfolio quality Key Performance #1 Debit Card spending •Maintain top position by delivering value and benefits matching customer lifestyles with 53% market share in 2022. • Launched new Virtual Debit Card to match customer lifestyle. 值 #1 Mutual Fund AUM Highest share, 22.5% in 1Q23 Highest share in Money Market & Fixed Income Fund, Term Fund and Foreign Investment Fund #1 Credit Card spending with 23.0% market share in 2022 #2 No. cards ⚫ with 15.6% market share in 2022 ⚫ Card-accepting merchant services (online & offline platforms): ranked #1, with 35% market share by sales volume in 2022 #2 Bancassurance Premium ⚫ MTL ranked #2 in total, new business and renewal premiums with 1Q23 market share of 14.7%, 16.3%, and 13.7% respectively. Bancassurance (% Market Share) 10% Mortgage Loan 9.2% Mutual Fund (% Market Share) 9.4% 8.3% 8.1% 7.7% (% Market Share) 30% 1 30% 24.8% 22.1% 21.8% 21.8% 22.5% 23.0% 21.8% 20.1% 20.1% 19.9% 19.3% 18.4% 18.3% 20% 20% 16.6% 17.1% 16.85.6% 16.3% 5% 14.7% 3.7% 10% 10% 0% 0% 0% 2018 2019 2020 2021 2022 2019 2020 2021 2022 1Q23 บริการทุกระดับประทับใจ 2019 2020 2021 ■New Business Total Premium 2022 Renewal Premium T 1Q23 58#30K 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: 59 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 60 60#31K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Risk and Credit Management บริการทุกระดับประทับใจ 61 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/TWG/ 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 and Business Solutions Division, MMT = Marketing Management Division, TWG = Transaction and Wealth Banking Division, CPD = Credit Products Division, TS = Central Treasury Department, CSF = Customer and Enterprise Service Fulfillment Division, KTBG = KASIKORN BUSINESS - TECHNOLOGY GROUP, ERM = Enterprise Risk Management Division, ADD = Audit Division บริการทุกระดับประทับใจ 62#32Approval 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 • FICO Score ⚫ Bureau information/Credit history ⚫ Debt service capacity • LTV ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Retail (Unsecured Loans) Payment Service Fulfillment Department Formula Lending • Customer Integrated Credit Scorecard • Application Score • Transactional Score ⚫ FICO Score • Bureau information/Credit history • Debt service capacity ⚫ Legal document • Limit set up 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 64 40 63#33K 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 65 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 66 60#34K 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 67 68#35K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Proactive risk management to counter economic slowdown and high household debt Continue to deploy proactive credit portfolio / risk management / asset quality management to mitigate an adverse impact from prolonged economic recovery and high household debt Corporate Business SME Business Retail Business ■ Focus on high potential industries less impacted by economic slowdown ■ Closely monitor customers in high risk industries and supply chains ➤ Actively monitor early warning signs ➤ Promptly respond to adverse events ■Selective on quality of customers ■ Proactive risk management by visiting customers; raise productivity of sales teams and relationship managers ■Efficient collection process ■Selective on high-value customers regarding prevailing BOT regulations and the Bank's policy ■ Proactive and efficient collection process based on the Bank's models ■ Analyze behavior regularly to identify weak spots บริการทุกระดับประทับใจ 69 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK J JK Asset Management Co., Ltd. (JK AMC) KBank K Company Profile Jmtev ⚫ 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 JK AMC Business Plan . 2Q22 Initial NPL transferred . 3Q22 Starts Operation 2022 1Q23 2025 KBank NPL Sales Total transfer Bt50bn* (KBank) Bt72.0bn* Target AUM Bt130bn (KBank and others) Bt35.6bn* Note: *Legal claim amount, not book value of transferring amount; total KBank's NPL transferred mostly to JK AMC บริการทุกระดับประทับใจ 70 70#36K 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 1Q23 Performance Highlights 71 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■■1Q23 net profit decreased 4.19% YoY, due to higher expected credit loss. However, EBPT improved as a result of 1Q23 loans dropped 1.20% YTD from SME, Credit Cards, Personal loan, and from NPL outflow management, while Regional and KLeasing increased ■NIM was 3.46% in 1Q23, increasing YoY, mainly due to higher yield in line with interest rate trend, despite higher cost of fund from higher rate and resumption of FIDF fee to its normal level of 0.46%. More than 90% of interest income received in cash Consolidated 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 strong growth in operating income and consistently efficient expense management Net Profit (Bt bn) 38.05 35.77 11.21 10.79 10.57 3.19 10.74 Profitability - NIM 3.21% 3.33% 3.19% 3.21% 3.33% 3.62% 3.46% - ROE* 8.44% 7.38% 9.30% 9.13% 8.49% 2.63% 8.43% - ROA 0.98% 0.86% 1.09% 1.04% 1.00% 0.30% - YTD Loan growth 7.88% 3.03% 1.51% 2.79% 1.75% 3.03% 1.01% -1.20% - YoY Loan growth 7.88% 3.03% 6.77% 4.45% 0.83% 3.03% - YoY Net fee income growth 7.01% (6.89%) - YoY Non-interest income growth (4.17%) (8.42%) (6.36%) (5.00%) (5.09%) (25.49%) (14.72%) (6.04%) (11.09%) 13.04% 0.28% (8.13%) 32.00% Cost control - Cost to income 43.49% 43.15% 42.82% 43.53% 43.73% 42.60% 42.50% Asset quality - NPL ratio 3.76% - Credit Cost 1.73% 3.19% 2.11% 3.80% 1.59% 3.07% 1.61% 3.19% 3.68% - Coverage ratio 159.08% 154.26% Loans to Deposits 93.20% 90.77% 93.31% 93.18% 92.65% Tier 1 Ratio 16.49% 16.84% 16.35% 16.39% 17.21% CAR 18.77% 18.81% 18.34% 18.37% 19.19% 90.77% 16.84% 18.81% 16.92% 3.78% 3.04% 1.53% 2.05% 158.33% 144.61% 148.74% 154.26% 156.68% 90.85% 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 18.90% * 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 1Q23 net fee income decreased 8.13% YoY from high-base brokerage and fund management business in 1Q22, in line with market conditions 1Q23 cost to income ratio was 42.50%, decreasing YoY, from net total income increasing, despite higher operating expense (mainly due to one-time employee expenses from cost of living subsidy measures). Focus on cost management and productivity improvement, with new investments for future growth 1Q23 NPL ratio was at 3.04%, with a coverage ratio of 156.68% from proactive NPL management In 1Q23, we detected deterioration, worth 6% of ECL, in a single large corporate loan. We took immediate action, covering the potential loss with management overlay, resulting in 1Q23 credit cost of 2.05% a little bit higher than target range. In 2023, credit cost will hold in the range of 175-200 bps. We expect extra effort will be needed to keep credit cost within this range because of our ongoing, proactive asset quality cleanup efforts and this one-time deterioration in a large corporate loan. However, the credit cost may hit the upper bound of the target range or slightly exceed it, rising to no more than 210 bps ■1Q23 capital base remained sufficient to support business growth บริการทุกระดับประทับใจ 72 22#37K KASIKORNTHAI Consolidated Financial Statements Statements of Comprehensive Income (Bt mn) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2021 2022 1Q22 2Q22 3Q22 4Q22 1Q23 Interest income Interest expenses Interest income - net Fee and service income 135,415 151,333 35,924 36,367 37,620 41,421 42,441 16,024 18,334 4,174 4,355 4,532 5,274 7,566 119,390 132,998 31,751 32,012 33,088 36,148 34,875 48,628 48,345 12,367 11,683 12,099 12,197 12,529 Fee and service expenses 13,312 15,463 3,535 3,536 3,974 4,418 4,415 Fee and service income - net 35,316 32,882 8,832 8,147 8,125 7,779 8,114 Gain (Loss) on financial instrument measured at FVTPL 5,539 5,053 686 (452) 144 4,674 3,671 Share of profit (loss) from investments using equity method Gain (Loss) on investments (694) 115 (50) 151 (40) 54 (0.01) 817 (130) (17) (135) (17) 38 (152) Net premium earned 69,360 66,056 15,718 14,393 17,853 18,091 18,422 Other operating income 1,289 2,123 427 406 614 675 512 Total operating income 234,328 242,542 58,218 55,745 60,606 67,973 66,419 Underwriting expenses 70,979 69,285 17,605 14,234 18,871 18,574 19,845 Total operating income - net 163,349 173,258 40,613 41,511 41,735 49,399 46,574 Total other operating expenses 71,044 74,753 17,390 18,070 18,251 21,042 19,793 Earning Before Provision and Tax 92,305 98,505 23,223 23,441 23,484 28,358 26,781 Expected Credit Loss 40,332 51,919 9,336 9,852 9,948 22,784 12,692 Impairment loss of loans and debt securities Operating profit before income tax expenses 51,973 46,585 13,887 13,589 13,536 5,574 14,089 Income tax expenses 9,729 8,633 2,700 2,454 2,546 933 2,562 Net profit attributable: Equity holders of the Bank 38,053 35,769 11,211 10,794 10,574 3,191 10,741 Non-controlling interest 4,192 2,183 (24) 341 416 1,450 786 Statements of Financial Position (Bt mn) Deposits Loans to customers Total Assets Total Liabilities Total Equity attributable to equity holders of the Bank 2021 2022 2,421,813 2,495,077 4,103,399 4,246,369 2,598,630 2,748,685 3,566,724 3,679,289 476,714 503,270 3,585,865 488, 192 1Q22 2Q22 2,458,263 2,489,420 4,133,248 4,187,779 2,634,409 2,671,536 3,642,814 488,963 3Q22 4Q22 1Q23 2,464,277 2,495,077 2,465,031 4,229,795 4,246,369 4,238,084 2,659,896 2,748,685 2,713,372 3,672,187 3,679,289 3,661,550 500,248 503,270 512,421 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 73 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Earnings Before Provision and Tax (EBPT) and Net Profit March 2023 (Consolidated) EBPT Net Profit (Bt bn) (Bt bn) 92.31 98.50 I 60 100 87.76 84.89 80 38.73 38.05 35.77 40 29.49 60 40 26.78 20 20 10.74 20 0 2019 2020 2021 2022 1Q23 0 2019 2020 2021 2022 1Q23 1Q23 net profit decreased 4.19% YoY, due to higher expected credit loss. However, EBPT improved YoY as a result of strong growth in operating income and consistently efficient expense management. EBPT (Bt bn) 2019 87.76 2020 84.89 2021 EBPT Growth (% YoY) 92.31 0.72% (3.27%) 8.73% 2022 98.50 6.72% 1Q22 23.22 1Q23 26.78 4Q22 1Q23 (1.16%) 15.32% 28.36 28.63% 26.78 15.32% Net Profit (Bt bn) 38.73 29.49 38.05 35.77 Net Profit Growth (% YoY) 0.70% (23.86%) 29.05% (6.00%) 11.21 10.74 5.50% (4.19%) 3.19 10.74 (67.77%) (4.19%) บริการทุกระดับประทับใจ 74#38K KASIKORNTHAI Interest Income - net March 2023 (Consolidated) Interest Income and Interest Expenses ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Income - net (Bt bn) (Bt bn) 151.33 133.00 160.00 130.18 135.41 140.00 127.59 140.00 120.00 119.39 102.69 109.02 120.00 100.00 100.00 80.00 80.00 60.00 60.00 | 42.44 34.88 40.00 40.00 27.49 18.57 16.02 18.33 20.00 20.00 7.57 0.00 0.00 2019 2020 2021 2022 1Q23 2019 2020 Interest income 2021 2022 1Q23 Interest expenses 1Q23 net interest income increased 9.84% YoY, mainly due to an increase in interest income from loans to customers, while interest expense increased according to the resumption of the contribution from financial institutions to the FIDF to its normal level of 0.46%. Interest Income (Bt bn) Interest Expenses (Bt bn) Interest Income - net (Bt bn) Interest Income - net (% Growth YoY) 2019 2020 130.18 127.59 27.49 18.57 2021 135.41 16.02 2022 1Q22 1Q23 4Q22 1Q23 151.33 18.33 35.92 42.44 41.42 42.44 4.17 7.57 5.27 7.57 102.69 4.21% 109.02 6.17% 119.39 9.51% 133.00 31.75 34.88 36.15 34.88 11.40% 12.86% 9.84% 17.36% 9.84% Note: Contributions from MTL's insurance business to KBank include non-interest income (e.g. net-premium earned-net), and interest income (e.g. interest income from investment portfolio); however, all income sources from MTL will be netted with non-controlling interests. บริการทุกระดับประทับใจ K KASIKORNTHAI Non-interest Income and Structure March 2023 (Consolidated) Non-interest Income to Average Assets Non-interest Income Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Premium Earned and Underwriting Expenses 75 (%) (Bt bn) 4 120 (Bt bn) 100 80.4980.65 3 65 1.79 60 57.80 (+2%) 80 72.13 72.56 69.36 70.98 69.28 66.06 60 2 996 1.32 55 1.13 0.96 1.10 50 45.87 (-21%) 40 43.96 (-4%) 18.42 19.85 20 40.26 0 1 45 (-8%) 2019 40 2020 Net premium earned 2021 0 64% 2022 1Q23 Underwriting expenses 35 2019 2020 2021 2022 Non-interest Income Ratio 1Q23 30 72% Net Premium Earned - net 80% 25 82% I 11.70 20 (Bt bn) 15 0.1% 5% 1 (32% YoY) 14 (%) 15% 10 10 60 5 14% 18% 50 0 -0.3% 36.02 40 I -5 2019 -0.4% -1% 2020 8% 13% -4%2021 0.3% 9% 69% 31% 8% 13% 6 0% -0.32022 29.61 26.91 1023-12% -1% 2 -0.16 30 23.24 25.12 -2 Other operating income 20 Dividend Income 10 0 Gain on investments Net earned premium-net 2019 2020 2021 2022 1Q23 -8% Fee and Service Income net ■Share of profit from investments on equity method-6 Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) 2019 2020 1Q23 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. -0.44 -1.62 -3.23 I-1.42 2021 2022 Non-interest Income (Bt bn) 2019 57.80 2020 45.87 Non-interest Income Growth (%YoY) Non-interest Income Ratio (%) 1.51% (20.65%) 36.02 29.61 2021 43.96 (4.17%) 26.91 2022 40.26 (8.42%) 23.24 1Q22 8.86 1Q23 11.70 4Q22 13.25 1Q23 11.70 (25.49%) 32.00% 21.82 25.12 13.04% 32.00% 26.83 25.12 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 76 70#39K KASIKORNTHAI Net Fee Income March 2023 (Consolidated) Net Fee Income (Bt bn) 36.74 40 35.32 33.00 32.88 30 20 10 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Fee Income to Net Total Operating Income (%) 30 22.89 21.31 21.62 18.98 20 17.42 8.11 10 0 2019 2020 2021 2022 1Q23 0 2019 2020 2021 2022 1Q23 ■1Q23 net fee income decreased 8.13% YoY from high-base brokerage and fund management business in 1Q22 in line with market condition. Net fee income to net total operating income was 17.42% in 1Q23. 2019 2020 2021 2022 1Q22 1Q23 4Q22 1Q23 Fee Income (Bt bn) Fee Income-net (Bt bn) Fee Income Growth (%YoY) Net Fee Income Growth (% YoY) Net Fee Income to Net Operating Income Ratio (%) Note: 50.58 45.70 36.74 33.00 48.63 35.32 48.35 12.37 12.53 32.88 8.83 8.11 (1.19%) (9.65%) 6.41% (3.61%) (10.17%) 7.01% 22.89 21.31 21.62 (0.58%) (6.89%) 18.98 (1.97%) 1.31% (6.36%) (8.13%) 21.75 17.42 12.20 7.78 8.11 (0.22%) 1.31% (11.09%) (8.13%) 15.75 17.42 12.53 - On the consolidated basis, Bancassurance fees are not included in net fee income since November 30, 2009, due to the elimination of inter-company transactions (the accounting treatment from the Muang Thai Group Holding consolidation) บริการทุกระดับประทับใจ K KASIKORNTHAI Net Fee Income Structure March 2023 (Consolidated) Net Fee Income by Product Brokerage business 5% Others 12% Credit card business 16% Fund Management Business 22% Transaction services 16% Commercial Cash credit management 17% Trade 4% finance 8% Loan Related and Non-loan Related Fees - net Non-loan related 84% Loan related 16% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Credit card business (mainly from credit card, merchant fees) ■Transaction services (such as ATM & debit cards, bill payments, money transfers, etc.) ■Commercial credit (mainly from commercial credit related fees) Cash management (such as fees from payroll accounts) ■Trade finance ■Fund Management Business (mainly from mutual fund and securities service fees) ■Brokerage business Others (such as capital market business, etc.) Note: - On the consolidated basis, Bancassurance fees are not included, due to the elimination of inter-company transactions (the accounting treatment from the Muang Thai Group Holding consolidation) - On the consolidated basis, Net Premium Earned - net (Net Premium Earned Less Underwriting Expenses) from Muang Thai Life Assurance (MTL) is reported as a part of non-Interest Income; KBank has a 38.25% economic interest in MTL บริการทุกระดับประทับใจ 77 78#40K KASIKORNTHAI Other Operating Expenses March 2023 (Consolidated) Other Operating Expenses Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) 72.73 74.75 70.00 71.04 70 I 29% 30% Other expenses 60 29% 28% 50 7% 7% 8% 8% I 40 18% 17% 16% 15% 0.2% 0.2% 0.2% 0.2% 30 Taxes and duties Premises and equipment expenses ■■Directors' remuneration ■Employee's expenses 19.79 20 46% 46% 49% 46% 27% 8% 10 0.1% 14% 0 2019 2020 2021 2022 51% 1Q23 1Q23 other operating expenses increased 13.82% YoY, mainly due to an increase in employee expenses from cost of living subsidy measures, which were one time expenses and customer service expenses increased according to business volume. Other Operating Expenses (Bt bn) 2019 72.73 2020 70.00 2021 71.04 2022 74.75 1Q22 1Q23 17.39 19.79 4Q22 1Q23 21.04 19.79 Other Operating Expenses Growth (%YoY) 6.41% (3.76%) 1.50% 5.22% 5.20% 13.82% 2.75% 13.82% บริการทุกระดับประทับใจ K KASIKORNTHAI Loan Structure and Loan Growth March 2023 (Consolidated, TFRS 8: Operating Segments*) Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio (Bt bn) Consolidated 2,800 2,421 2,495 2,465 Amount (Bt bn) Dec 22 Mar 23 1Q23 1Q23 Y2023 Loan Growth Yield Range Loan Growth Target 2,245 2,400 2,002 (%) (%) 2,000 34% 36% 36% Corporate Corporate Loans 880 876 (0.5%) 2-4% 36% 1,600 35% 1,200 33% 31% 31% 34% 33% ■SME ■Retail SME Loans 780 763 (2.2%) 5-7% Retail Loans 703 690 (1.9%) 5-7% Other Loans 132 136 3.8% 800 Others 400 28% 28% 29% 28% 28% Total Loans 1) 2,495 2,465 (1.2%) 5.5% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 3% 4% 5% 5% 2019 2020 2021 2022 1Q23 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 1Q23 WBG loans were Bt85bn, increased 4.2% YTD, and 69.0% YoY Loan by Retail Products (All Segments)** (Amount in Bt bn) Dec 22 Mar 23 Y2022 1Q23 % Portion 15 10 250 (%) 12.13 Loan Growth Loan Growth to Total Loan 7.88 (%) (%) 4.59 3.03 5 Housing Loans 443 440 (8.3) (0.6) 17.9 0.28 0 2019 2020 2021 2022 1Q23 Credit Cards Consumer Loans KLeasing 109 101 7.4 (7.4) 4.1 73 68 11.2 (7.3) 2.8 137 142 13.4 3.3 5.8 2019 2020 2021 2022 1Q22 1Q23 4Q22 Loans (Bt bn) 2,002 2,245 2,422 2,495 2,458 2,465 2,495 1Q23 2,465 Loan Growth (% YoY) Loan Growth (% YTD) 4.59% 4.59% 12.13% 12.13% 7.88% 3.03% 6.77% 0.28% 3.03% 0.28% 7.88% 3.03% 1.51% (1.20%) 3.03% (1.20%) 79 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 80#41K ธนาคารกสิกรไทย KASIKORNTHAI 开泰银行 KASIKORNBANK Loan Portfolio Breakdown by Business, Residency of Borrowers, and Maturity of Interest Repricing March 2023 (Consolidated) (Bt bn) 3,000 Loan Portfolio by Business* By Residency of Borrowers (December 2022)* Foreign 5.14% 2,500 2,495 2,422 2,245 Others 2,000 1,439 1,527 1,610 1,698 1,803 1,914 11.6% 12.8% 15.7% 14.5% 14.6% 14.8% 17.2% 1,500 1,327 12.5% 14.2% 1,000 16.2% 13.5% 12.5% 13.2% 14.7% 13.7% 13.5% 12.8% 8.9% 9.0% 8.6% 8.5% 14.9% 6.9% 6.6% 46:2% 41.7% 6.9% 14.2% 14.2% 14.3% 14.2% 2,002 14.6% 16.3% 14.9% 16.2% 17.7% 18.3% 16.8% ■ Housing loans 17.1% 15.2% ■Infrastructure and services 14.7% 8.6% 14.5% 8.4% ■Property development and construction 500- 0 8.6% 8.9% 48.1% 49.1% 48.1% 47.3% 46.2% 44.0% 41.7% 40.5% 42.1% 2.4% 2.3% 2.0% 1.9% 2.1% 1.9% 1.8% 1.7% 1.6% 1.5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Manufacturing and commerce Agriculture and mining 2021 2022 Definition of Loans 1) by industry Gross loans Loans to customers less deferred revenue 2) by currency Loans to customers and AIR - net 3) by maturity of interest repricing = Loans to customers less deferred revenue Loans by Bangkok and Metropolitan vs. Upcountry Loan by Bangkok and Metropolitan vs. Upcountry Domestic 94.86% By Maturity of Interest Repricing (December 2022)* > 6 months 19.98% Others 0.65% <=6 months 9.36% Proportion of KBank's Outstanding Loans 2015 2016 2017 2018 2019 2020 2021 2022 1Q2023 Bangkok and Metropolitan 64% 6.3% 64% 62% 59% 58% 62% 62% 63% Upcountry 36% 37% 36% 38% 41% 42% 38% 38% 37% Note: *The information on loans breakdown by industry, residency of borrowers, and maturity of interest repricing are disclosed on half year basis Immediate repricing 70.01% K KASIKORNTHAI Asset Quality March 2023 (Consolidated) NPL Ratio บริการทุกระดับประทับใจ Coverage Ratio (%) (%) 5 200 3.93 3.65 3.76 148.60 149.19 159.08 154.26 156.68 4 3 2 1 illii 3.19 150 3.04 100 50 0 0 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 81 Classified Loans* (Bt bn) Stage 1 Performing Stage 2 Under-performing Stage 3 Non-performing Total 2021 2022 1Q23 2,130 2,230 2,211 202 188 181 106 93 89 2,438 2,511 2,481 NPL ratio in 1Q23 was at 3.04%, with a coverage ratio of 156.68%. NPL ratio dropped YoY from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. Asset quality is to be closely monitored and constantly reviewed. NPL Ratio (%) Coverage Ratio (%) SML to Total Loans Ratio (%) Loans with significant increase in credit risk (%) 2019 2020 2021 2022 1Q22 1Q23 4Q22 1Q23 3.65 3.93 3.76 3.19 3.78 3.04 3.19 3.04 148.60 149.19 159.08 154.26 158.33 156.68 154.26 156.68 2.80 7.80 7.27 6.47 7.22 6.25 L 6.47 6.25 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 82 62#42K KASIKORNTHAI Expected Credit Loss and Credit Cost March 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 I 50 43.55 350 40.33 300 40 34.01 250 205 211 205 174 173 30 200 150 20 12.69 100 10 50 0 0 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23 In 1Q23, we detected deterioration, worth 6% of ECL, in a single large corporate loan. We took immediate action, covering the potential loss with management overlay. The level of management overlay temporarily dropped but stayed within our 15-20% comfort range In 2023, credit cost will hold in the range of 175-200 bps. We expect extra effort will be needed to keep credit cost within this range because of our ongoing, proactive asset quality cleanup efforts and this one-time deterioration in a large corporate loan. However, credit cost may hit the upper bound of the target range or slightly exceed it, rising to no more than 210 bps Expected Credit Loss (Bt bn) 2019 34.01 2020 43.55 2021 40.33 2022 51.92 1Q22 9.34 1Q23 12.69 4Q22 22.78 1Q23 12.69 (Impairment Loss of Loans and Debt Securities) Credit Cost (bps) 174 205 173 211 153 205 368 205 บริการทุกระดับประทับใจ K KASIKORNTHAI Bad Assets Resolution March 2023 (Consolidated) (Bt bn) 70 60 50 40 30 20 10 5.5 4.3 3.9 5.0 0 10.3 7.3 Write-offs ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK NPL Portfolio Sales (Bt bn) 80 72.0 59.0 70 60 50 40 35.6 26.4 27.4 30 15.4 19.9 10.7 اتاتت 21.5 20 11.4 8.4 6.4 7.1 6.8 10 2008-2015: 2021: no bulk NPL sales no NPL sale 0 1.1 2007 2017 2021 2022 1Q23 NPL sales 10.1 9.6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Outstanding Foreclosed Properties 2008 2015 2016 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) 16.7 15.9 15.1 31.5 28.4 24.9 12.5 12.1 13.4 16.1 17.4 19.6 (Bt bn) 54.7 54.1 46.3 6.5 5.4 5.6 5.0 4.8 4.1 4.0 4.3 2.8 3.0 2.9 3.0 2.4 13.1 1.8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 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 84 83 83#43K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK TFRS 9: Investment in Securities Portfolio and Structure March 2023 Instrument Type (Consolidated) Financial Assets Classification (TFRS 9) Consolidation Bank only (Bt bn) (Bt bn) 1,098 1,200 1,029 1,057 0.4% 1,098 0.9% 0.8% 1200 1,029 1,057 1,000 824 11% 0.3% 0.9% 777 11% 11% 824 0.8% 11% 0.3% 1000 800 0.4% 12% 12% 560 10% 14% 17% 0.2% 511 17% 18% 800 478 15% 56% 8% 600 15% 62% 63% 15% 20% 600 329 30% 13% 18% 56% 400 11% 33% 35% 61% 59% 59% 400 14% 200 53% 54% 38% 31% 56% 200 38% 32% 67% 50% 45% 0 T 0 6% 6% 5% 5% 8% 6% 4% 5% 2019 2020 2021 2022 1Q23 2020 2021 2022 1Q23 2020 2021 2022 1Q23 Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) Investments Subsidiaries 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. Investment Portfolio (Bt bn) 2018 663 2019 2020 2021 777 824 1,098 2022 1,029 Investment Portfolio (% Growth YoY) 23.51% 17.22% 6.15% 33.16% (6.23%) 16.33% 1Q22 1,080 1,057 (2.08%) 1Q23 4Q22 1Q23 1,029 | 1,057 (6.23%) (2.08%) | บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Deposits Growth and Loans to Deposits Ratio March 2023 (Consolidated) Deposits Loans to Deposits Ratio (Bt bn) 3,000 2,599 2,749 2,713 100% 2,345 96.6% 2,400 2,072 95.7% 95% 93.2% 1,800 90.9% 90.8% 1,200 90% 600 0 85% 2019 2020 2021 ■Deposits 2022 1Q23 2019 2020 2021 -Loans to Deposits 2022 1Q23 Deposits and Loans to Deposits Ratio is in line with peers. Deposits (Bt bn) Deposits (% YoY) Deposits (% YTD) Loans to Deposits Ratio (%) 2018 2019 2020 2021 2022 1,995 2,072 2,345 2,599 2,749 6.20% 3.90% 13.20% 10.80% 5.77% 6.20% 3.90% 13.20% 10.80% 5.77% 95.90% 96.62% 95.73% 93.20% 90.77% บริการทุกระดับประทับใจ 1Q22 2,634 9.70% 1 3.00% 1.40% (1.30%) 93.30% 1Q23 4Q22 1Q23 2,713 2,749 2,713 5.77% | 3.00% 5.77% (1.30%) 90.90% 90.77% 90.90% 85 86#44K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Funding Structure and Interest Rate Movement March 2023 (Consolidated) Funding Structure Deposit Structure (Bt bn) 2,972 2,967 2,236 2,502 2,889 (Bt bn) 3,200 2,800 2,599 2,749 2,713 6% 5% I 6% 2,345 2,800 3% 2,400 2,072 18% 18% I 4% 18% 2,400 2% 3% 2,000 20% 4% 2,000 3% 23% 4% 1,600 1,600 1,200 76% 76% 76% - CASA 1,200 74% 800 93% 94% 90% 92% 91% 71% = 82% 800 400 400 0 0 6% 6% 6% 6% 6% T 2019 2020 2021 2022 1Q23 2019 2020 ■Current 2021 ■Savings 2022 1Q23 Term ■Deposits ST and LT Borrowings Interbank and Money Market KBank Interest Rate Movement (Retail customers) ST and LT Borrowings (%) Deposit rates (%) (Jun 6, 2023) 8.00 (Bt bn) Savings 0.30 7.00 125 103 89 Fixed 3M-12M 0.87-1.45 82 6.00 100 69 68 5.00 Fixed 24M-36M 1.90-2.05 75 4.00 Lending rates (%) (Jun 6, 2023) 50 99% 87% 3.00 97% 98% 100% 2.00 MLR 7.02 25 2% 1.00 0.00 MOR MRR 7.34 1% 0 13% 3% 7.05 2019 2020 2021 2022 1Q23 2016 2017 2018 2019 2020 2021 2022 2023 ■ST Borrowing ■B/E & Others LT Borrowing MLR Savings -Fixed3M K บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK KASIKORNTHAI Long-term Senior/Subordinated Debentures Issue Date Long-term Subordinated Debentures Name Type Feature Amount Maturity Years Interest Rate (Per annum) Interest Payment period Credit Rating Additional Tier 1 10/08/2021 Unsecured Subordinated Notes* Perpetual NC5.5Y USD350mn 4% 14/10/2020 Additional Tier 1 Subordinated Notes* Unsecured Perpetual NC5Y USD500mn 5.275% Semi- annually Semi- annually Ba2 by Moody's Ba2 by Moody's 02/10/2019 Tier II Subordinated Notes due 2031* 12 Years Unsecured 12NC7 USD800mn 3.343% (02/10/2031) Semi- annually Ba1 by Moody's BB+ by Fitch Ratings Long-term Senior Debentures 07/03/2023 Senior Unsecured Notes due 2028* Unsecured USD600mn 5Years (07/03/2028) 5.458% Semi- annually Baa1 by Moody's BBB by Fitch Ratings. 27/12/2022 JPY Sustainability Long-Term Debentures #2** Unsecured JPY2520mn 2.1 Years (20/01/2025) 0.655% On 27/12/23 and 20/01/25 AA+ (tha) by Fitch 15/12/2022 USD Sustainability Long-Term Debentures** Unsecured USD45mn 3 Years (15/12/2025) 5.34% Semi- annually AA+ (tha) by Fitch 15/12/2022 JPY Sustainability Long-Term Debentures #1** Unsecured JPY2745mn 3 Years (11/12/2025) 0.86% annually AA+ (tha) by Fitch 07/12/2018 Floating Rate Notes due 2023* Unsecured USD15mn 5 Years (07/12/22023) 3m Libor+0.95% Quarterly 30/10/2018 Floating Rate Notes due 2023* (Sustainability Bond) Unsecured 12/01/2018 Senior Unsecured Notes due 2023* Unsecured USD100mn 5 Years (30/10/2023) 3m Libor+0.95% Quarterly USD400mn 5.5 Years (12/07/2023) 3.256% Semi- annually Baa1 by Moody's BBB by S&P BBB by Fitch Ratings Note: *The issued notes are drawn from the Bank's USD4bn Euro Medium Term Note Programme (EMTN) Note: ** The issued notes are drawn from the Bank's Bt30bn Medium Term Note Programme (MTN) บริการทุกระดับประทับใจ 88 10 87#45K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: The wholly-owned subsidiaries, and Muang Thai Life Assurance บริการทุกระดับประทับใจ 89 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: Business Profile and Aspiration March 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) KResearch EST. Dec 1994 KASIKORN RESEARCH CENTER CO., LTD. Professional in providing knowledge and analysis in economics, business, money and banking- related issues Only research house which is an affiliate of a bank KSecurities EST. Jul 2002 KASIKORN SECURITIES PCL. Professional in providing a complete range of excellent financial solutions and services, including investment banking, securities underwriting, and securities brokerage KLeasing EST. Dec 2004 KASIKORN LEASING CO., LTD. Professional in providing three core products: hire purchase, financial lease, and floor plan KF&E EST. Jul 1990 KASIKORN FACTORY AND EQUIPMENT CO., LTD. Professional in providing a complete range of machinery and equipment leasing services Asset Size Bt2.60bn Market Share Bt0.18bn Bt29.39bn 18% #1 Awareness based on a survey 2.9% (#11) Bt142.68bn Bt23.24bn 9%1 16% 2023 Targets Maintain top tier position Maintain the status as a top-notch research house 3-year Aspiration Maintain top tier position Maintain the status as a top-notch research house Maintain leading position in securities business under local bank parent Top of mind securities firm Maintain a good asset quality portfolio Provide complete range of financial solutions and maintain good asset quality Maintain top tier position and focus on good asset. quality Top tier leader in sustainability in equipment leasing Note: 1 Outstanding market share among 6 banks leasing companies (AYCAL, TTB, SCB, KK, TISCO and KL) บริการทุกระดับประทับใจ 90 90#46K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: 2023 Key Operating Performance March 2023 KAsset EST. Mar 1992 KResearch EST. Dec 1994 KSecurities EST. Jul 2002 KLeasing EST. Dec 2004 2023 Key Operating Performance Assets Under Management (AUM): Bt1.57trn #1 Awareness based on a survey (1.8% YoY) Trading volume: Bt225bn - Number of customers grew 8% YoY KF&E EST. Jul 1990 Outstanding loans: Outstanding loans: Bt131.21bn (+12.42% YoY) Bt24.09bn (+0.25% YoY) 8 7 (Bt bn) The wholly-owned subsidiaries of KBank: Net Profit 5.99 6 5.39 5.6 4.91 5 4.56 3.85 3.66 4 3.23 3 2 1 0 7.2 6.26 1.36 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Net profit dropped from the same period of 2022, -19.24% YoY. However, KBank continues to create synergy among its wholly-owned subsidiaries. บริการทุกระดับประทับใจ K KASIKORNTHAI KAsset Highlights in 1Q23 March 2023 (Bt bn) 10,000 หลักทรัพย์จัดการกองทุนกสิกรไทย #KASIKORN ASSET MANAGEMENT AUM (KAsset vs. Industry) 8,750 (Bt bn) 2,000 8,000 6,000 8,279 7,737 8,228 8,537 6,959 7,173 6,368 5,118 5,534 4.253 4,000 3.633 1,090 1,132 1,240 1,303 1,380 1,431 1,477 1,575 1,500 1,566 1,489 3,015 742 946 851 1,000 2,000 Cen (%) 30.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Industry KAsset Market Share by AUM 500 Industry Outlook: ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 1Q23 industry AUM at Bt8.54trn, decreasing 0.4% YoY KAsset AUM at Bt1.57trn, increasing 1.8% YoY KAsset Highlights: Ranked #1 in Mutual Fund and #2 in Provident Fund with market share of 22.5% and 16.8%, respectively Ranked #2 in total AUM with market share of 18.3% Mutual fund accounts for 70.9% of KAsset AUM 36.135.935.835.0 31.0 KAsset AUM Breakdown by Type Provident Fund 15% 18.5 17.818.018.118.3 21.4 19.5 19.019.6 20.8 15.0 11.3 10.5 10.210.410.0 10.7 9.6 10.1 9.3 9.3 7.1 6.5 6.8 6.8 6.6 0.0 KAsset SCBAM BBLAM KTAM KSAM 2019 2020 2021 2022 1023 Other บริการทุกระดับประทับใจ Private Fund 14% Mutual Fund 71% 91 92#47K KASIKORNTHAI KResearch Highlights in 1Q23 March 2023 ศูนย์วิจัยกสิกรไทย 开泰研究中心 KASIICORN RESEARCH CENTER Number of News Quotes ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 30,000 25,000 23,873 22,431 20,000 18,047 14,532 15,000 11,500 10,000 7,910 8,452 5,000 0 2016 2017 2018 6,407 2019 2020 2021 2022 1Q23 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 K KASIKORNTHAI KLeasing Highlights in 1Q23 March 2023 ลีสซิ่งกสิกรไทย 开泰超 KASIKORN LEASING KLeasing vs. Industry (Thousand Units) 1,500 (Bt bn) 250 1,042 1,008 200 1,000 872 800 848 769 792 762 150 137 131 100 500 108 115 115 121 89 91 97 215 50 (%) 50 25 2 2015 2016 1Q23 2017 2018 2019 2020 2021 2022 Total Car Sales in Thailand - KLeasing Outstanding Loans Market Share by Total Outstanding Loans (%)¹ 2929292828 2828272827 0 AYCAL TTB 2019 ■2020 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 93 Industry Outlook: 1Q23 industry car sales totaled 214,809 units KLeasing Highlights: 1Q23 KLeasing loans totaled Bt131.21bn, increasing 12.42% YoY 1Q23 KLeasing NPL ratio was 1.62%, lower than the industry average³ KLeasing Outstanding Loans Breakdown² Floorplan 8% 1616161413 8 9 101213 Fleet/Finance Lease 1111101010 77899 17% SCB 2021 KK TISCO KLeasing Hire Purchase 75% 2022 1Q23 Note: 1 Excluding captive and non-bank leasing Other Used Car Car to 3% Cash 16% New car 81% 2 New car includes HP New car, Fleet finance, Finance lease (FL) and Floorplan and Used car includes Car to Cash (K-Car / Car registration loan) and other used cars 3 Source: BOT, Data as of 4Q22 = 1.88% บริการทุกระดับประทับใจ 94#48K KASIKORNTHAI KSecurities Highlights in 1Q23 March 2023 หลักทรัพย์กสิกรไทย (Bt bn) #KASIKORN SECURITIES Trading Volume (KSecurities vs. Industry)* KS CAGR Y2008-2022: 16.7% 42,000 40,998 36,000 30,000- 1,800 34,057 1,517 1,600 29,829 24,790 24,000 21,296 1,119 22,937 1.021 20,345 19,549 21,899 22,442 18,000 12,377 12,486" 817 13,772 1,251 1,000 12,000 7,962 8,640 430 411 683 812 860 868 800 7,812 600 6,000- 400 207 117 200 225 0 0 (%) 10.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Total Industry Trading Volume KS Trading Volume Market Share by Trading Volume* ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) 2,000 1,400 Industry Outlook: 1Q23 industry trading volume* was Bt7.81trn, decreasing 29% YoY KS trading volume was Bt225.36bn 1,200 KSecurities Highlights: KS ranked #11, with 2.88% market share Majority of revenue came from brokerage Number of customers account grew 8% YoY to 359,034 customers in 1Q23 KSecurities Revenue by Business 5.0 3.83.7 3.0 3.43.53.43 4.24.95.4 4.75.2 6.16.35.1 4.04.5 3.02.9 3.2.8 1.92.42.42.21.9 2.92.92.1.91.7 0.0 KS INVX KTZ BLS TNS MST 2019 2020 2021 2022 1Q23 Note: * Industry trading volume excluding proprietary trades บริการทุกระดับประทับใจ Investment Banking 9.4% Brokerage and other 90.6% 95 K KASIKORNTHAI KF&E Highlights in 1Q23 March 2023 แฟคเตอรี แอนด์ อีควิปเมนท์ กสิกรไทย 开泰设备融资 KASIKORN FACTORY AND EQUIPMENT KF&E Loan Outstanding (Bt bn) 30.0 25.11 25.15 24.31 24.09 25.0 22.88 20.38 20.0 17.63 15.0 10.0 5.0 0.0 2017 2018 2019 2020 2021 2022 1Q23 Industry Outlook: ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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: 1Q23 KF&E loan outstanding was increased Bt24.09bn, +0.25% YoY KF&E currently ranked #1; maintaining lead position in equipment leasing industry Note: In 2010, KASIKORN FACTORING (KFactoring) was renamed KASIKORN FACTORY AND EQUIPMENT (KF&E) to better reflect their business, focusing on offering leasing services. for machinery and equipment; the factoring business operation of KFactoring was transferred to KBank บริการทุกระดับประทับใจ 96 90#49K KASIKORNTHAI Life Insurance Industry in Thailand 20.0 Premium per % GDP by Country (%) 16.5 15.0 14.0 11.6 10.0 5.86.4 5.8 6.07.67.5 5.0 1.51.11.0 2.8 3.23.2 3.44.03.9 2.3 2.4.1 3.3 3.43.4 Taiwan South Korea Singapore Australia India Malaysia China Thailand Y2019 ■Y2020 ■Y2021 1.4141 1.21.21.5 1.41.61.6 Indonesia Philippines Vietnam ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2021, Thailand insurance penetration rate was 3.4% with a high opportunity for growth. ■Muang Thai Life Assurance (MTL) ranked #3 in life insurance industry in Thailand, in 1Q23 with 12.7% market share of total premium. #4 in life insurance industry in Thailand, in 2022 Source: Swiss Reinsurance Total Premium (Bt bn) Size of Market by Premium (%) CAGR 13-22: 5% New Business Premium (Bt bn) Market Share by Total Premium in Life Insurance (%) Source: The Thai Life Assurance Association (%) 30.0 700.0 600.0 500.0 601.7 627.4 400.0 503.9 537.5 568.3 610.9 600.2 442.5 300.0 200.0 100.0 614.1 611.4 200.0 24.9 25.6 ■2021 2022 1Q23 25.0 23.4 180.0 160.0 20.0 17.3 140.0 120.0 15.0 13.2 13.7 14.714.4 11.9 100.0 11.812.7 12.2 10.0 8.1 80.0 5.6 5.8 5.9 60.0 5.0 5.2 5.65 4.9 5.1 6.9 7.4 7.3 1.8 4.4 2.4 2.2 156.5 40.0 1.71.8 20.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1923 ΑΙΑ FWD MTL TLI KTAL BLA AZAY PLT OLIC GT Others New Business Premium Total Premium * New Business Premium in 1Q23 Bt44.9bn Source: The Thai Life Assurance Association Note: Total Premium = New Business Premium + Renewal Premium; New Business Premium First Year Premium + Single Premium บริการทุกระดับประทับใจ K KASIKORNTHAI Bancassurance Highlights in 1Q23 Bancassurance Market Share by Total Premium (%) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (%) 40 36.0 ■2021 30 28.6 ■2022 27.3 18.4 20 20 16.8 14.7 916 910.7 10 9.18.0 8.5 58.38.77.7 8.76.26.2 8.58.4 5.9 3.84.44.1 1.72.43.6 1.8 1.81.4 2.3.7 0 FWD MTL PLT KTAL BLA AIA TLI AZAY DLA GT Others (%) 40 40 Bancassurance Market Share by New Business Premium (%) 1Q23 1.3 MTL ranked #2 in Bancassurance market #2 in Bancassurance total premium with 14.7% market share #2 in Bancassurance new business premium with 16.3% market share 30 20 28.6 21.31.2 ■2021 2022 1Q23 18.3 17.1 16.3 17.8 13.3 11.6 9.3 10 10.6 7.7 7.9.6 987.4 4.96.1 5.3 4.76.14.2 3.3 3.9 3.9 6.1 5.9 2.6 3.2 4.03.1 2.5 0 FWD MTL PLT DLA KTAL AIA BLA TLI AZAY SELIC 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 97 98#50K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank's Strategic Acquisition in Muang Thai Group Holding (MTGH) MTL's insurance business supports KBank's strategic objective of providing a full range of financial services to satisfy customers' needs and universal banking platform MTGH MTI MTL MTB FVC AIGEN MTIB Current KBank Economic Interests Muang Thai Group Holding Co., Ltd. (MTGH) 51.00% Muang Thai Life Assurance PCL. (MTL) 38.25% Muang Thai Insurance PCL. (MTI) 10.20% Muang Thai Broker Co., Ltd. (MTB) 50.99% MT Insure Broker Co., Ltd. (MTIB) Fuchsia Venture Capital Co., Ltd. (FVC) AIGEN Co., Ltd. (AIGEN) 38.20% 38.25% 49.94% ■ Established on 6 April 1951 mtl MUANG THAI LIFE เมืองไทย First life insurance company to have received the Royal benevolence in granting the appointment as the life insurance company of His Majesty King Bhumibol Adulyadej ■ Joined hands with Ageas in 2004 (formerly known as Fortis Insurance International NV) and joined hands with KBank in 2009 Credit Rating: S&P Global: BBB+ (Stable Outlook) Fitch Ratings: A- (Stable Outlook) / AAA(tha) (Stable Outlook) ■ Thailand Top Company Awards 2023 (Insurance Industry) from Business+ Magazine & University of the Thai Chamber of Commerce ■ Business+ Product Innovation Awards 2023 Life and Non-Life Insurance, Category of Service from Application "MTL Click" from Business+ Magazine & Mahidol University ■Most Sustainable Insurance Service Provider from the Global Economics Magazine ■Thailand Most Admired Company 2023 from BrandAge Magazine ■ Ageas holds 7.83% in MTGH and holds 24.99990% in MTL บริการทุกระดับประทับใจ (Data as of 30 Sep 2022) 99 2021 2022 1Q23 Net premiums earned 69.4 66.1 Net investment income 22.5 20.4 Total revenues 91.9 86.5 Long-term technical reserve increase from the previous period 25.6 14.5 Net benefit payments and insurance claims 41.6 50.6 Commissions and brokerages 8.6 7.4 Other underwriting expenses 0.7 2.5 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 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. 18.4 5.8 24.2 4.7 14.1 1.8 0.6 Operating expenses & Other 5.5 4.6 1.1 Key Financial Targets Total Expenses 82.0 79.6 22.3 Bt bn 2018 2019 2020 2021 2022 1Q23 Profit before income tax expense Income tax expense Net profit (loss) Statements of Financial Position (Bt bn) Total Assets 9.9 6.9 1.9 Total Premium 94.5 83.8 75.3 73.0 69.3 19.9 1.8 1.2 0.3 (after refund) 8.1 5.7 1.6 % Growth -8% -11% -10% -3% -5% 18% 2021 2022 1Q23 2021 2022 1Q23 607.5 625.0 ROE (%) 10.2% 6.6% 7.1% 632.4 Total Liabilities 520.9 Total Equities 537.6 86.6 87.4 544.7 ROA (%) 1.4% 0.9% 1.0% 87.8 Risk-Based Capital (RBC) 359.7% 331.5% 358.1% Source: Muang Thai Life Assurance, data based on book value except for RBC บริการทุกระดับประทับใจ 100#51K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Investment Portfolio and Insurance Premium MTL Investment Portfolio: Fixed Income accounted for around 83% MTL Total Premium Jry# #72H# Erqg 8517 ( Total Premium Growth MTL Industry (%YOY) Y2019 -11% -3% Y2020 -10% -2% 19.9 Y2021 -3% 2% Y2022 -5% 0% 1Q23 18% 4% 1Q23 ■Total Premium 2020 New Business Premium 2021 2022 Renewal Year Premium Ghsrvlw 316 P ruwjdjh# Toynwwp hqwSurshuw 31; ( Ordq 318 ( Vwrfn 50 4318 ( Qrwh 615 ( 40 30 Sraf #Ordq 20 617 ( 10 XqlwWuxvw 5k ( 2019 "FFFF| (bn) 90 Ghehqwxuh 581: ( 100% Assets Under Management (AUM)* (31 Mar 23): Bt 588,336 bn MTL Total Premium by Products: Ordinary product accounted for around 84% in 1Q23 80% 60% 40% 20% 0% 2019 Group 2020 Personal Accident *Remark: Invested Assets + Investment Property K 2021 ■Industrial 2022 1Q23 Ordinary Source: The Thai Life Assurance Association MTL Total Premium by Channels: Bancassurance accounted for about 46% in 1Q23 100% 80% 60% 40% 20% 0% 2019 ■ Other 2020 ■Direct Marketing 2021 2022 1Q23 ■Bancassurance ■ Agents Source: The Thai Life Assurance Association (TLAA)/2019 - 3Q22 data from TLAA monthly report (new format) บริการทุกระดับประทับใจ KASIKORNTHAI MTL International Business Expansion ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Current International Business Project (On-going) Cambodia Company Name Sovannaphum Life Assurance Dara Insurance Plc. Plc. Lao PDR ST-Muang Thai Insurance Co., Ltd. Vietnam MB Ageas Life Insurance Co., Ltd. Entry Strategy เมืองไทย Joint Venture with Canadia Investment Holding Plc. Joint Venture with Individual Shareholders Ownership by MTL 49% 25% Joint Venture with ST Group Co., Ltd and Muang Thai Insurance Company Limited (MTI) Joint Venture with Military Bank and Ageas 22.5% 10% Myanmar Operation Year 2015 2018 2016 2017 2014 Business Operation Life Insurance General Insurance Composite Insurance (Life & General) Life Insurance Representative Office บริการทุกระดับประทับใจ 101 102#52K KASIKORNTHAI MTL's Life Insurance Product Profile Four Major Types of Life Insurance Product ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Ordinary Life Insurance Products: Provide life protection for a fixed amount to an insured person Can be further classified into four sub-categories; ➤ Endowment Life Insurance: Savings type product; insured person receives an amount at the certain period of time or a designated beneficiary receives death benefits upon the death of the insured person within the insured period (e.g. Pro Saving products) Term Life Insurance: Provides temporary protection with no savings component. Claim can be made upon death within the stated term period (e.g. MRTA products) Whole Life Insurance: Provides life time protection (to the age of 90 or 99) with the death benefit paid to the beneficiary upon the death of the insured (e.g. Pro Life products) Rider: Additional coverage desired by the insured (sample of additional coverage: medical expense, accident) ■Group Life Insurance Products: Term insurance covering a group of people, usually employees of a company or members of a union or association ■Industrial Insurance Products: Life insurance with a modest amount of coverage, low premium, and no health check requirement Personal Accident: A limited life insurance designed to cover the insured in case of personal accident บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sample of K-Bancassurance and MTL Products K BANCASSURANCE K-Bancassurance Products¹) Endowment Life Insurance Pheu Sasom Sub 11/3 Guarantee Pay premium for only 3 years, but the coverage continues for 11 years ความคุ้มค่า รร เป็น % นวนเงินเอาประกันภัย ณ วันเริ่มมีผมคุ้มครองตามกรมธรรม์ หรือมูลค่าเงินกินในขณะนั้น หรีด 101 % ของจำนวนเบี้ยประกันภัยที่ได้ชำระไว้ ตามแต่จำนวนได้ ramh Life Coverage in % of the initial sum insured, or cash surrender value at the time, or 101% of the paid premium, whichever is higher. mtlMuang Thai Life Assurance Products²) Endowment Life Insurance Muang Thai Smart Linked 15/3 (Global) Payment premium for only 3 years, but the coverage continues for 15 years 330% ชำระเบี้ยประกันฝัน ณ พัชร 300% 200% 100% หยุดป่ะเบี้ยประกันภัย Stop premium payment รา 0 1 2 4 5 6 7 8 9 10 11 Premium payment at the beginning of policy year End of policy year เป็นจ่ายสิน Cash bonus - - - - - - รับเงินจ่ายคืน 15% ณ สิ้นปีกรมธรรม์ ทุกๆ ปีกรมธรรม์ ยกเว้นในปีกรมธรรม์ที่ครบกำหนภิญญา = = = = = = Life Coverage 220 110% End of Policy Year Premium Payment at the Beginning of Policy Year Cash Bonus 15 th th 1% 1% 1% 1% 1% 196 15 103 Maturity Benefit Maturity Dividend 300% Kifany (1) Benefit and coverage are % of the initial sum insured. In case the benefit amount and coverage are stated incorrectly, the specified % shall apply. (2) The dividend shall be paid to the insured who is alive upon contract maturity only. However, the Company does not guarantee maturity dividend. (The amount shown in the schedule below is calculated based on "Maturity Dividend Formula" only.) The Company shall pay 300% of the initial sum insured or 101% of the paid premium to the insured, whichever is higher. (4) Life coverage is equivalent to % of the initial sum insured according to the above schedule or the cash surrender value at that time or 101% of the paid premium (whichever is higher). 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. (3) Term Life Insurance MRTA-Home (Mortgage Reducing Term Assurance) Example, in case the customers choose to insure their loan in full term and full coverage Loan Amount Sum insured amount Premium payment at the beginning of policy year The contract starts Coverage of Pitaksin-Home is equivalent to the reducing sum insured amount Policy Year Coverage • S Loan Amount Scenario 1: Death or total and permanent disability The customers can choose to continue the coverage throughout the contract term or receive cash surrender value Term Life Insurance Khumkhrong Baep Khongthi Life-Bukkhon Single Premium payment period, but the coverage can be chosen between 1 - 15 years Term of installment loan Term of insurance 10 12 14 15 End of Policy Year Premium Payment Scenariol Early Redemption at the Beginning of Policy Year Remark: the above coverage is based on an assumption that the customer's credit repayment history is normal according to the Bank's loan contract 1) K-Bancassurance products are MTL's life insurance products selling through KBank 2) Muang Thai Life Assurance products are MTL's life insurance products selling through MTL sales agents, and/or other channels บริการทุกระดับประทับใจ Remark (1) Is in % of the initial sum insured Coverage Period Premium Payment Period 1-15 Years Single Premium 100% (1) Life Coverage Maturity 104#53K 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 Smart Protection 99/7 Whole life coverage: payment premium for 7 years and get coverage to the age of 99 ตัวอย่าง Example Muang Thai Khumkhrong Talot Chip 99/1 (CB 2.25%) Life insurance with single premium, but the coverage continues to age 99 years ความคุ้มครองชีวิต 105% ตลอดสัญญา หรือมูลค่าเวนคืน Life coverage at 105% throughout the insurance contract or surrender value นปีกรมธรรม์ที่ หยุดชำระเบี้ยประกันภัย End of policy year Stop premium payment Premium Payment เงินจ่าย บ 0 1 97 Cash bonus Age of 97 อายุ 6 Antaining the age of 98 at the Beginning Artaining the age of 99 of Policy Year รับเงินจ่ายคืน 2-25% ของจํานวนเงินเอาประกันภัย ณ วันเริ่มมีผลคุ้มครองตามกรมธรรม์ ตั้งแต่ปีกรมธรรม์ที่ 1 - ครบอายุ 98 ปี เงินครบสัญญา 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 100%(1) Life Coverage End of Policy Year O 56789101 Attaining the age of 99 Years Maturity benefit 102.25% Maturity Benefit 100% (1) Life coverage is 100% of the initial sum insured or cash surrender value at that time or 101% of paid premium (whichever is higher). (2) In case of being alive until contract maturity, the benefit is 100% of the initial sum insured or 101% of paid premium (whichever is higher). Long-Term Health Coverage Insurable age is until the age of 90 with coverage period until the age of 99 Be Covered to the Max Lump sum benefit based on actual expense of 5 million Baht Standard single room in any hospital Rider D Health Plus Rider 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. 10 Long-Term Health Care Entry age is up to 90 years old with long-term coverage until attaining the age of 99 Receive OPD Coverage Up to 30 times per year 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 K KASIKORNTHAI KBank: Other Information OPD Rider The Right Rider This OPD rider is not required to be purchased together with IPD coverage. Complete Coverage including doctor's fees, disagnosis charges, or medical expenses ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 105 บริการทุกระดับประทับใจ 106#54K KASIKORNTHAI Shareholder Structure April 18, 2023 (Record Date) Shareholder Structure Top 10 Shareholders* ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % 1. THAI NVDR CO., LTD.** 15.922 2. STATE STREET EUROPE LIMITED 10.054 3. SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 5.089 Thai Shareholders 57.01% 4. THE BANK OF NEW YORK MELLON 3.458 Foreign Shareholders 42.99% 5. SOCIAL SECURITY OFFICE 2.434 6. STATE STREET BANK AND TRUST COMPANY 2.169 (NVDR = 15.922%**) 7. SOUTH EAST ASIA UK (TYPE A) NOMINEES LIMITED 1.783 Note: Foreign Shareholding Limit 49% Note: The Top 10 Shareholders are based on individual accounts 8. BNY MELLON NOMINEES LIMITED 1.384 9. SE ASIA (TYPE B) NOMINEES LLC 1.074 10. HSBC BANK PLC - SAUDI CENTRAL BANK SECURITIES ACCOUNT A 1.060 Other Shareholders Total 55.573 100.000 ** Thai NVDR Co., Ltd (Thai NVDR) is responsible for issuing and selling Non-Voting Depository Receipts (NVDRS) to investors. The Stock Exchange of Thailand (SET) is the major shareholder, holding 99.99% of the total shares, of Thai NVDR. The NVDR limit for KBank is 25%. *** Thailand Securities Depository Company Limited (TSD), a subsidiary of the Stock Exchange of Thailand, provides three types of securities post trade services: securities depository services, securities registration services, and provident fund registration services; the shareholders booked under TSD are those who are not eligible for dividend payments as their investment is not aligned with their citizenship (i.e. foreign investors buying KBank shares on the local board or Thai investors buying KBank shares on the foreign board) Source: Thailand Securities Depository Company Limited (TSD), the Stock Exchange of Thailand website (www.set.or.th), and KBank บริการทุกระดับประทับใจ K KASIKORNTHAI Credit Ratings As of May 16, 2023 KBank Local Currency/ National Long-term Subordinated Outlook Debts Foreign Currency 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. บริการทุกระดับประทับใจ 107 108#55K KASIKORNTHAI Organization Chart Auditor Corporate Strategy & Analytics Corporate Strategy and Innovation Division Corporate Secretary Corporate Secretariat Division 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 Management Committee Product Management Private Bank Business Business in Overseas Credit Products Division Transaction and Wealth Banking Division Channel & Marketing Management Private Banking Group Capital Markets Business World Business Group Data and Analytics Division Integrated Channels and Business Solutions Division Marketing Management Division Capital Markets Business Division Sales & Service Distribution Network Division Corporate Business Investment Banking Business Division Division บริการทุกระดับประทับใจ Risk Oversight Committee Audit Committee Audit Division Service Fulfillment Customer and Enterprise Service Fulfillment Division Risk & Resources Management Enterprise Risk Management Division Finance and Control Division Human Resource Division Note: Effective on 1 January 2023 K KASIKORNTHAI Board of Directors Structure ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■18 board members: 6 Independent Directors, 5 Executive Directors, and 7 Non-Executive Directors ■Director age limit is 72 years old ■Term limit of directorship for Independent directors shall not exceed nine consecutive years Executive Directors (5) ⚫Ms. Kattiya Indaravijaya (Chief Executive Officer) Mr. Pipit Aneaknithi (President) • Mr. Patchara Samalapa (President) ⚫Mr. Krit Jitjang (President) ⚫ Dr. Pipatpong Poshyanonda (President) • Non-Executive Directors (7) ⚫ 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 109 110#56K KASIKORNTHAI Sustainable Development Framework and Policy ASPIRATIONS SD FRAMEWORK GOAL COMMITMENT SD POLICY MATERIAL AREA Environment Bank of Sustainability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Be an ESG Leader among Banks in Southeast Asia Ensuring environmental stewardship towards a net zero-carbon society We are committed to preserving the environment and reducing the impact of climate change. 1. Committing to becoming Net Zero in our own operations by 2030 2. Committing to reducing greenhouse gas emissions in our financed portfolio in line with Thailand's aspirations; reducing greenhouse gas emissions in significantly impacted sectors, both in terms of greenhouse gas emission volume and the proportion of loans extended to each sector; and accelerating this journey where possible 3. Being the leader in innovative "Green Finance" in Thailand 4. Providing services beyond financial solutions to support decarbonization in Thailand • GREEN OPERATIONS ⚫ SUSTAINABLE FINANCE Society Being a responsible corporate citizen to create a sustainable society We are committed to developing strong relationships with employees and society to better livelihoods and increase prosperity. STAKEHOLDER ENGAGEMENT 5. Ensuring financial inclusion and promoting financial literacy 6. Safeguarding customer data security and privacy 7. Ensuring the "Best Place to Work, Learn and Lead" by embedding Green DNA and creating future-ready workforce 8. Respecting for human rights and diversity 9. Promoting the development of youth potential as well as the pursuit of environmental, public and social activities ⚫ FINANCIAL INCLUSION and FINANCIAL/CYBER LITERACY ⚫ RESPECT TO HUMAN RIGHTS ⚫ CUSTOMER DATA SECURITY AND PRIVACY Governance / Economy Being an accountable bank to create sustainable profitability We are committed to strong ESG principles to be a responsible and accountable bank 10. Ensuring business operations under good corporate governance practices and delivering services to customers with fairness 11. Adhering to customer centricity by initiating financial innovations that meet every aspect of customers' needs 12. Ensuring efficient risk management focusing on environmental, social, and governance (ESG) issues ⚫ ESG RISK MANAGEMENT AND COMPLIANCE PARISIONS บริการทุกระดับประทับใจ K KASIKORNTHAI KBank Sustainable Development Journey Bank of Sustainability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK conducts business with the principles of a Bank of Sustainability, supported by good corporate governance principles, as well as appropriate risk and cost management. We strive to balance economic, social, and environmental dimensions to achieve goals and create sustainable long-term returns. The philosophy of sustainable development is instilled in all our operations as part of our Green DNA, ensuring maximum benefit for all stakeholders and paving the way for sustainable growth. KBank Sustainable Development Journey CSR after process CSR in process SD Policy Human Right Policy BOT & TBA Responsible Lending 2010 2012 SD Report 2014 SD Policy ESG credit policy Net Zero Commitment Decarbonization PCAF 2016 2019 2020 2021 Human Right Due Diligence Carbon Neutral Scenario Analysis UN PRB TCFD* UN PRI 2022 UN Global Compact Net Zero 111 INTERNATIONAL = Bloomberg FTSE4Good MSCI The first Bloomberg Gender-Equality Index (GEI) member from Thailand. The Bloomberg Gender-Equality Index (GEI) distinguishes companies committed to transparency in gender reporting and advancing women's equality for five consecutive years (2019-present) A member of the FSTE4Good Emerging Index for six consecutive years (2016-present) KBank's Leadership Level rating is at AA for its ESG performance among emerging market banking sector peers +CDP A LIST 2022 CLIMATE Pride of KBank The first Thai commercial bank with CDP A List (Leadership Level) in Climate Change, assessed by the Carbon Disclosure Project (CDP) The first and only commercial bank in Thailand and ASEAN selected as a Dow Jones 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 THSI THAILAND SUSTAINABILITY INVESTMENT 2022 ESG100 LCSB Included in Thailand Sustainability Investment (THSI) for seven years (2015, 2017-2022) carton ESG 100 certificate 2022 (Certified by Thaipat Institute) An Excellence award under The Low Carbon and Sustainable Business Index (LCSI) award (2021- 2022) BEST 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 112#57K 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 Q ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 113 K KASIKORNTHAI Environmental Aspect (1/2) GOAL Commitment Green operations Ensuring environmental stewardship towards a net zero society ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK We are committed to preserving the environment and reducing the impact of climate change 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 114#58K KASIKORNTHAI Environmental Aspect (2/2) GOAL ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 2 portfolio as a proportion of loans to different industries to rank those industries with significant greenhouse gas emissions. FEASIBILITY ASSESSMENT Studying the assessment methodology of each industry, which depends on the availability of data used in the calculation and various reference scenarios (Availability of Methodology) and Availability of Counterparty Data. ABILITY TO DELIVER ASSESSMENT 3 Consider the ability to change each industry (Decarbonization Trend), Complexity to Execute, and Local Context to be used as factors in ranking the industry. Targets: Allocate at Least Bt100-200bn in Sustainable Financing and Investment by 2030 Sector Prioritization for Portfolio decarbonization management The Bank assessed and formulated a Sector Decarbonization Strategy ➤ Y2022 - 3 sectors: Power Generations, Oil and gas, and Coal ➤Y2023 2 Sectors Sustainable Financing and Investment: ► 2022 Targets: Bt25bn ► 2022 Performance: Bt26bn * Thailand's ambition at COP26: . 2050 carbon neutrality and 2065 Net Zero GHG Emission บริการทุกระดับประทับใจ 115 K KASIKORNTHAI Social Aspect: GOAL Commitment Being a responsible corporate citizen to create a sustainable society ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 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 Respect for Human rights Respect to human rights Human rights risk assessment in all business activities: 100% of KBank 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 จงอย่า n 151Adu 15THA PAYLATER ช้อปตอนน จ่ายตอนนน Work บริการทุกระดับประทับใจ 116#59K KASIKORNTHAI Governance GOAL Commitment Being an accountable bank to create sustainable profitability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK We are committed to strong ESG principles to be a responsible and accountable bank Material Area and Targets ESG Risk Management and Compliance ESG credit: 100% of Project Finance requests and medium enterprises (and above) must be processed through the ESG credit assessment Sample of Performance In 2022, 100% of project finance and above medium- sized entrepreneurs passed ESG risk assessment worth Bt514,652mn Corporate Governance and Anti-Corruption Corporate Governance Reviewing KBank practices under Thai IOD, Sustainability Indices (DJSI) criteria ASEAN CG Scorecard, and Dow Jones • ASEAN CORPORATE GOVERNANCE Implementing a strategic plan for CG activities to enhance compliance by directors, executives, and staff with CG principles, Code of Conduct, and Anti-Corruption Policy through Organizing training courses and continually communicating via e-Learning system Communicating with companies within KASIKORNBANK FINANCIAL CONGLOMERATE to ensure consistency of operations Reviewing the Statement of Business Conduct, the Code of Conduct, the Statement of CG Principles, CG Policy, and related Charters; keeping them up-to-date in accordance with Ongoing business operations and Bank Sustainability Compliance with laws, international practices, and best practices as prescribed by regulatory agencies and competent agencies • . Anti-Corruption KBank, KAsset, and KSecurities co-signed a declaration of the "Thai Private Sector Collective Action Against Corruption (CAC)" project and have been recognized as CAC certified companies since 2013. BOD approved the revised Anti-Corruption Policy in compliance with the assessment and certification criteria for anti-corruption measures of the Thai Private Sector Collective Action against Corruption. Internal Communication on Anti-Corruption Policy to ensure proper practices within the organization by Organizing training courses for executives and employees Communicating with all directors, executives and employees via KBank electronic networks and website Communicating with suppliers on operational guidelines, including Communication of supplier manual on the Code of Conduct related to business ethics, human 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 117 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: Risk Oversight Committee Board of Directions At the management level Lending activities are structured so as to demonstrate environmental and social responsibility as follows Corporate Governance Committee ➤ Board of Directors Approving risk management policy, frameworks, risk limits and risk appetites Risk Oversight Committee Overseeing and ensuring compliance with consolidated risk management policies and strategies and acceptable risk appetite Assessing risk management policies and strategies to cover all risks including emerging risks ➤ Corporate Governance Committee Overseeing, monitoring, and undertaking sustainable development Sustainable Development Sub-committee . . 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 Credit Risk Management Sub-committee Sustainable Development Sub-committee ➤ Credit Risk Management Sub-committee Considering sustainable development communications both within and outside KBank, and information disclosure in compliance with domestic and global sustainability frameworks and standards Determining ESG credit policy and processes, and updating such policy and processes Business Units 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 Function ➤ Monitoring and Controlling Functions • Determining environmental and social management as agreed Reporting to Corporate Governance Committee 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: 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 Offences relating to exploitation of 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 K KASIKORNTHAI Public Recognition Highlight: 2022-1Q23 ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK 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 - 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 - Outstanding Interactive Best Bond House in Thailand - 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 HNWIS COP Leadership Level (CDP A List) 2022 CLIMATE Chatbot Service by a Retail Bank 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 PRIVATE BANKER - Winner - Best Bank for ***Sustainability and ESG Leadership TCCTA -Best Contact Center of the Year Highly Commended- Best App for Customer Experience - Highly Commended- Best Content Marketing Program Highly Commended- Excellence in SME Banking 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 - 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 BANKING FINANCE 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 IDZ C -Red Dot Award: Brands & Communication Design in the category of Interface & User Experience Design red fot (for Mobile User Interfaces) for KhunThong social chatbot 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. ThaiBMA Top Underwriter Best Bond House Deal of the Year Most Innovative Deal Corporate ESG Bond of the Year 1Q23 THE ASIAN BANKER Best Retail Bank in Thailand RETAIL BANKER INTERNATIONAL GLOBAL FINANCE - Most Recommended Retail Bank in Thailand - Best Frictionless Customer Experience Initiative (YouTrip) - Best Mobile Banking Service (K PLUS) 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) - The World's Best Trade Finance Providers 2023 THE Asset # - BTS Group Holding's Baht 11 billion Multi-tranche Sustainability-linked Debentures IFR - ESG Bond: BTS Group's Baht 20 billion Sustainability-linked Bonds ASIA ASIAMONEY - Best for High Net Worth in Thailand BrandAge - Thailand's Most Admired Brand: Mobile Banking mongoDB. - 2023 MongoDB APAC Innovation Award - Customer Focused (MAKE by KBank) บริการทุกระดับประทับใจ 119 120#61LL K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Banking System and Regulations Update บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Commercial Banks and Specialized Financial Institutions (SFIs) Market Share (% of Total Loans) Market Share (% of Total Deposits) 6 SFIs Bt Billion Bt Billion 24,000 21,672 22,274 22,173 28,000 20,301 souilu 18,869 19,358 20,000 17,765 17,004 30.8% 31.0% 16,000 EXIM 30.4% 30.2% 30.4% 29.9% 30.0% 29.9% 12,000 8,000 24,000 20,000 16,000 12,000 8,000 20,936 21,880 22,793 22,892 16,843 17,707 18,463 19,178 26.5% 26.7% 26.4% 26.4% 26.7% 26.8% 27.0% 26.8% 13 Commercial Banks* 4,000 70.1% 70.1% 70.0% 69.6% 69.8% 69.6% 69.2% 69.0% 4,000 0 Bangkok Bank 0 sumang-aine 2016 2017 2018 2019 2020 2021 2022 Feb-23 SFIs Commercial Banks 73.3% 73.2% 73.0% 73.2% 73.5% 73.3% 73.6% 73.6% 2016 2017 2018 2019 2020 2021 2022 Feb-23 Commercial Banks SFIs ธนาคารกสิกรไทย 121 Net Loans Inow SCB Bt Billion Deposits 16,000 tb O I 14,000 12,579 | 12,000 10,470 10,602 11,061 11,633 11,859 10,000 I CIMB O KIATHAKIN BANK I 8,000 6,000 I LH BANK ICBC 4,000 Standard Chartered S 22.8% 22.1% 11.3% 12.3% 14.6% 15.0% 18.1% 16.4% 16.4% 16.8% 16.4% 22.7% 12.5% 15.0% 15.8% 22.8% 22.9% 12.8% 12.9% 13.6% 15.1% 15.4% 15.7% 15.8% 15.1% 15.3% 16.1% 15.5% 16.7% 13,258 11.2% 12.5% 12.6% 21.9% 10.0% 9.7% 9.6% 12.4% 12.3% 12.4% 16.7% 16.6% 13,618 13,535 Bt Billion 18,000 16.4% 16.9% 18.1% 17.3% 17.3% 2,000 16.8% 17.5% 17.5% 17.4% 16.8% 16.9% 16.3% 16.0% 16.3% KTB 8,000 ■BBL 6,000 15.4% 15.2% SCB 4,000 2,000 Other 16,000 ■ttb 14,000 11,196 11,359 12,099 12,578 13,057 ■BAY 12,000 21.2% 20.6% ■KBank10,000 9.7% 9.4% 15.3% 15.8% 17.1% 17.4% 19.1% 14,472 15,032 15,658 15,690 Other 12.0% 11.9% 10.5% ■■ttb 20.2% 8.9% 8.9% 8.9% 20.6% 21.5% 21.5% BAY 11.7% 11.4% 11.7% 12.6% 11.3% 10.9% 15.5% 15.8% 11.9% ■KBank 17.2% 17.4% 17.1% 16.2% 15.8% ■KTB I 17.0% 17.4% 16.6% 16.7% 16.2% 16.5% ■BBL 0 *The integration of TMB Bank and Thanachartbank was completed in Jul-21. 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 0 18.2% 18.6% 18.6% 18.0% 17.7% 17.2% 17.7% 17.3% 17.3% SCB 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 1Q23 I 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 122#62K KASIKORNTHAI Thailand's Digital Readiness: Number of Users ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ High adoption of digital lifestyle in Thai market; high penetration in smart devices and internet users in preparation toward a cashless society (Mobile Banking & e-Money) 161.6% Penetration Mobile Internet 1) (Mobile internet numbers) 58.5% Penetration Broadband Internet 1) (No. of households using internet via broadband) 77.0% Penetration Volume: 5.3 bn transactions, +32.7% YoY Value: 91.7 trn baht, +18.4% YoY 3) Social Media 2) (No. of Facebook users) Thailand e-Payment (Volume and Value) Prompt Pay พร้อมเพย์ 74.7 m Million 157.4% Penetration 66.5% Penetration PromptPay 4) (Total registration) Mobile Banking (No. of accounts) 5) Internet Banking 5) (No. of accounts) 199.3% Penetration e-Money 5) (No. of accounts/ cards) Source: The Bank of Thailand (BOT), National Statistical Office of Thailand (NSO), Thai Banker Association (TBA), Ministry of Interior (MOI), wearesocial and KResearch Notes: Denominator for all penetration ratio is number of population age six and above as of December 2022. Denominator for fixed internet penetration is number of household. 1) As of Dec-22, 2) As of Jan-23, 3) Jan-Feb-23, 4) As of Jan-23, 5) As of Feb-23 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Financial Sector Master Plan (FSMP) Implementation Stages FSMP I (Y2004-2009) ■ Increase efficiency of the financial institutions system - 'One Presence' policy - Expand scope of business: 'Universal Banking' - New licenses for retail banks and foreign bank subsidiaries ■ Promote financial inclusion - Strengthen financial institutions (FIs) by promoting voluntary mergers ■ Protect customers Source: BOT and KResearch FSMP II (Y2010-2014) Looking forward to liberalization Reducing system-wide operating costs ■ Streamlining regulations ■Tackling remaining NPLs and NPAs Promoting competition and access to financial services ■ Promote competition ■ Promote financial access ☐ Strengthening financial infrastructure ■ Promote development of financial products that help support risk management ■ Enhance information systems for risk management ■ Push for draft/review of necessary financial laws to support risk management and an expedited resolution to NPLs ■ Promote information technology utilization ■ Develop human resources in the financial sector FSMP III (Y2016-2020) competitive, inclusive, connected, and sustainable 1) Promote electronic financial and payment services, as well as enhance efficiency of the financial system ■ Promote the adoption of digital banking & electronic payment services in the government, business, and retail sectors ▪ Enhance operational efficiency of financial institutions and other service providers ■ Evaluate future financial landscape to promote operational efficiency of financial institutions and other service providers 2) Support regional trade and investment linkages ■ Facilitating and reducing obstacles for banks' international expansion, including ■ The establishment of Qualified ASEAN Bank (QAB) ■ The development of cross-border financial infrastructures ■ The creation of suitable financial environments among neighboring countries to foster international trade and investment in the GMS 3) Promote financial access ■ For households: encouraging development of financial products and services appropriate for changing customer demands ▪ For SMEs: improving necessary SME database within the financial institution system and supporting credit extension to SMEs ▪ For Corporate: promoting and facilitating suitable environment for private sector's raising of capital 4) Develop relevant infrastructure (Enablers) ■ Developing key infrastructures in the financial system ■ Strengthening regulations and supervision in line with international standards to ensure stability of the overall financial system Note: There are four types of Commercial banks in Thailand; Full service banks; Foreign bank branches; Retail banks; and Subsidiaries GMS = Greater Mekong Subregion = Cambodia, China, Lao PDR, Myanmar, Thailand, and Vietnam บริการทุกระดับประทับใจ 123 124#63K 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 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Updates on the Deposit Protection Agency (DPA) DPA Objectives and Missions Enhanced understanding of the deposit protection scheme ■Close cooperation with related authorities to maintain stability of the financial institution system Establishment of an appropriate system for premium collection and sound management of the Deposit Protection Fund ■Development of an effective information system to ensure fairness of the deposit protection scheme, with accurate and rapid reimbursement ■Management according to Good Governance Principles and in compliance with international standards established by the International Association of Deposit Insurers Amount of Insured Deposits ■Insured deposits include deposits and accrued interest denominated in Thai Baht accounts, excluding non- resident Thai Baht accounts Blanket guarantee will be gradually phased-out to a limited coverage of Bt1mn per depositor per institution. Until 2011, Thai banks paid 0.40% per year of the daily average deposit amount (paid in June and December), excluding deposits in foreign currencies and deposits from financial institutions not insured by the DPA Since January 27, 2012, the contribution rate has increased from 0.40% to 0.47%, with 0.46% being the contribution to the FIDF, and 0.01% being paid to the DPA. The FIDF fee will temporarily reduce to 0.23% until the end of 2022* ■Royal Decree on an extension of deposit protection coverage was announced in the Royal Gazette on September 24, 2012 The Cabinet approved a one-year extension of deposit protection up to a maximum of Bt5mn. From August 11, 2021, the protection covers deposits up to Bt1mn. Deposit Accounts in Thailand (as of February 2023) 11 August 2012-10 August 2015 Insured Deposit Under the amending the Deposit Protection Agency Act Up to Bt50mn 11 August 2015-10 August 2016 11 August 2016 - 10 August 2018 11 August 2018 - 10 August 2019 Up to Bt25mn 11 August 2019 - 10 August 2021 11 August 2021, onwards Up to Bt15mn Up to Bt10mn Up to Bt5mn Up to Bt1mn Deposits Less than Bt1mn # of Accounts 120,364,172 % Amount (Bt mn) 98.42 3,382,725 % 21.28 More than Bt1mn, but less than Bt10mn 1,776,912 1.45 4,372,830 27.51 More than Bt10mn, but less than Bt25mn 103,626 0.08 1,542,807 More than Bt25mn, but less than Bt50mn More than Bt50mn 31,823 0.03 1,111,600 25,984 0.02 Total 122,302,517 100 5,483,858 15,893,820 9.71 6.99 34.50 100 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 125 126#64K 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 August-2022, BOT granted licenses for 9 digital personal loan operators ➤Impacts on Thai banks: Move toward further liberalization and digitalization, along with enhanced competition from FinTech and non-bank companies ➤Impacts on KBank: Ability to maintain competitiveness over both existing and new players, helped by an effective customer-centric strategy and preparation for a changing environment Thai and International Financial Reporting Standards (TFRSS / IFRSS) ■Year 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 127 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Basel III: BOT Minimum Capital Requirement Transitional Arrangement for Capital Requirement All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 5.125% (4.5%+0.625%) 5.75% 6.375% 7.5% 8.0% 8.0% 8.0% 8.0% 8.0% (4.5%+1.25%) (4.5% +1.875%) (4.5% +2.5% +0.5%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) (4.5%+2.5% +1%) Tier 1: Min. Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 6.625% (6.0%+0.625%) 7.25% (6.0%+1.25%) 9.0% 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%) 7.875% (6.0%+1.875%) (6.0% +2.5% +0.5%) 9.5% (6.0% +2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 9.5% (6.0% +2.5% +1%) 12.0% (8.5%+2.5% +1%) 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 164%, 166% and 174% as of December 2022, June 2022, and December 2021, respectively; more details can be found on Basel III - Pillar 3 Disclosures Report Remark: Banks with a capital ratio less than the required regulatory buffers will face various degrees of constraint on earning distribution Source: The Bank of Thailand บริการทุกระดับประทับใจ 128#65K 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 KASIKORNBANK Basel III • Issued and paid-up share capital* • . Premium on ordinary shares • Legal reserve and Retained earnings Other comprehensive income (OCI) e.g. surplus on bond and equity FVTOCI (100%), surplus on land & premises (100%) Additional Tier 1 Hybrid Tier 1 with loss absorbency feature Minority interest, Preferred stock Deduction of Common Equity Tier 1 . Goodwill, Deferred tax asset • Intangible assets ⚫ Investment in insurance (Threshold Deduction) - Amount 10% of CET1, %RW = 250% (KBank's Case) - Amount > 10% of CET1, deduct CET1 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 • General Provision • Surplus on AFS equity (45%) 1 . Surplus on land & premises (70% and 50%) * Net Treasury Stock บริการทุกระดับประทับใจ K KASIKORNTHAI TFRS and IFRS Implementation* 2013 2015 2016 2020 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2022 2025 TAS 21: Effects of Changes in Foreign Exchange Rates Translate 'Functional Currency' to 'Presentation Currency' TFRS 8: Operating Segments Disclose operating results for each key segment TFRS 13: Fair value TFRS 4: Insurance Contracts TFRS 16 (Leases) Measurement Clear required factors and disclosure about fair valuation ➤ Measure insurance liability based on cash flow estimation ➤ Additional disclosure regarding risk exposure There is a single, on-balance sheet accounting model for lessee that is similar to current finance lease accounting. TFRS 9 (IAS 39), TFRS 7 & TAS 32: Financial Instruments Thai banks have implemented a new provisioning rule under IAS 39, since December 2006 ➤ Unquoted equities at cost to be faired value and not able to realize capital gain/loss in profit and loss if they are faired valued through OCI ➤ Interest revenue of lending portfolio will be recognized per effective interest rate ➤ Investment in property fund, REIT, infrastructure fund and infrastructure trust established in Thailand will be classified as equity instrument. (Refer to announcement from TFAC dated 25 June 2020) TFRS 17: Insurance Contracts Insurance revenue will be based on margin, not gross premium received Expected day one loss is immediately realized while expected gain is deferred over coverage period TFRS 9 Amendments from Interest Rate Reform ➤ Replacement of IBOR with new benchmark rate is considered as continuation of existing contract and/or hedge strategies. 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 130 129#66K KASIKORNTHAI K KASIKORNTHAI Government Policy บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Sources and Uses of Public Funds FY2023 Budget FY2023 budget act was approved in August 2022 and was published in the Royal Thai Gazette on September 19, 2022. Budget Planning Tax Revenue + Non-Tax Revenue (Bt2.49trn) + Borrowing under FY2023 Budget Act (Bt695bn) FY2023 Budget (Bt3.18trn) = General Budget (Bt2.39trn or 75%) + Investment Budget (Bt0.69trn or 22%) + Principal Repayments (Bt0.10trn or 3%) Budget Execution Budget Disbursement (100% target disbursement rate + carry-over) General Administration (Bt1.11trn or 35%) ■ Defense ■ Homeland security Economic Affairs (Bt762bn or 24%) ■ Development of the country's competiveness ■ Subsidize SOES (e.g. Infrastructure project, free bus and train service policy) ■Infrastructure/Agricultural Development Social and Community Services (Bt1.31trn or 41%) ■ Education ■ Universal Healthcare Notes: Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year. บริการทุกระดับประทับใจ 131 132#67K KASIKORNTHAI Government Fiscal Budget 1400 1200 1000 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Thai parliament approved FY2023 budget worth Bt3.18trn, with a deficit of Bt695bn ■Implementation of FY2023 budget effective October 2022 600 540 360 الاس 800 600 400 390 700 695 450 609 200 450 469 163 100 0 FY2017 FY2018 FY2019 FY2020 FY2022 FY2023 Budget Deficit Economic Policies ■2022 Budget Act ■2023 Budget Act FY2021 Extra-Budget Borrowing Key Points ■FY2022 budget at Bt3.10trn with a deficit of Bt700bn ■FY2023 budget at Bt3.18trn with a deficit of Bt695bn Implementation Process FY2022 ■ Effective date: October 1, 2021 FY2023 ■ Effective date: October 1, 2022 Possible Impacts/ Expected Budget ■Government spending will help maintain economic momentum ■Fiscal sustainability to remain manageable in near-term; however, continued debt creation, both from budget deficit and other borrowings, may impact long-term fiscal sustainability Note: Thai government's fiscal year (FY) begins on October 1 and ends on September 30 of following year Sources: The Ministry of Finance and KResearch (as of October 2022) บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Public Debt to GDP and Fiscal Budget Public Debt Budget Disbursement Rate million Baht 11,000 10,500 10,000 9,500 9,000 8,500 8,000 7,500 7,000 6,500 6,000 (%) % 70 100 55 90 65 80 60 60 70 59.9 60 53.1 55 45.3 50 37.7 50 40 50 30.0 30 22.7 45 45 15.0 20 Jan-17 Mar-17 May-17 -inc Sep- Nov- Sep-19 Public Debt (lhs) May-2 Sep-20 Jan- Mar-2 May-2 Jul-21 % to GDP (rhs) Sep-21 Nov-2 Jan-2 Mar-22 Jun -22 ■■Public debt to GDP ratio rose to 61.2% in March Aug-22 Oct-22 Dec-22 Feb-23 2023. However, it is still under the 70% limit set under the fiscal sustainability framework ■Thai government raised the ceiling of the public debt-to-GDP ratio from 60% to 70%. The public debt to GDP is expected to rise to 60.43% in FY2023 Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO) 40 40 FY 2023 FY 2022 10 ⚫FY 2021 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY23 Budget FY23 target Bt3.18trn (100%) Bt2.52trn (100%) Bt0.66trn (100%) 7M FY23 actual Unused FY23 Budget B1.90trn (60%) Bt1.65trn (65%) Bt0.26rn (40%) Bt1.28rn (40%) Bt0.87trn (35%) Bt0.40trn (60%) Total Budget Bt3.18trn - General Budget Bt2.52trn - Investment Budget Bt0.66trn ■Government budget disbursement rate for 7MFY2023 is 59.9%, up 2.3% from 57.6% in 7MFY2022 บริการทุกระดับประทับใจ 133 134#68K KASIKORNTHAI 20-Year National Strategy (2017-2036) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (As defined in Section 65 of the Constitution of the Kingdom of Thailand and passed by the NLA in June 2017) To achieve the vision "Security, Prosperity, Sustainability", to become a high-income country, to improve quality of life, to generate high income, to escape the middle income trap, and to ensure well-being for all Thais "Security" Security Key Strategies "Prosperity" 2 Competitiveness enhancement Broadening Opportunity and Equality in Society Development and Empowerment Human Capital 3 5 Reforming Government Administration Environmentally- Friendly growth "Sustainability" " The Goals High income country: 15,000 USD per capita by 2036 (2016 income per capita = 5,901 USD) Economic growth around 5% per year (4-5% under 12th NESDB Social and Economic Development Plan and 5% for the next three NESDB 5-Year Plans) People of all ages healthy and with lifelong learning opportunities Target Gini: <= 0.36 (inequality measurement: lower figure indicates better income distribution) Forest area as percentage of total land area more than 40% Fully implement Digital Government Services Enhance Corruption Perceptions Index beyond 50Plus (the lower tier of least corrupt countries) National Strategy Committee: Chairman is the Prime Minister; Secretary is NESDB Secretary-General 34 committee members First 17 committee members are high-ranking state officials and leading industry experts such as the Prime Minister, members of the top brass, National Police Chief, Permanent Secretary for Defense, President of the House of Representatives, Chairman of the Federation of Thai Industries, President of the National Farmers Council, President of the Thai Bankers' Association, Chairman of the Thai Chamber of Commerce, etc. Second 17 Committee members are experts from various fields 2017 2022 T Aug17: Cabinet appointed committees Jun17: NLA passed the law Jun18: Cabinet endorsed the plan Jul18: NLA approved the plan 2027 2032 The National Economic and Social Development Plan (5-year plan) aligned with the 20-year National Strategy The 12th National Economic and Social Development Plan (2017-2021) The 13th National Economic and Social The 14th National Economic and Social Development Plan (2022-2026) Development Plan (2027-2031) บริการทุกระดับประทับใจ 2036 The 15th National Economic and Social Development Plan (2032-2036) 135 K KASIKORNTHAI Government Policy: Long-term Policies ■ 20-Year National Strategy: To achieve the vision "Security, Prosperity, Sustainability," to become a high-income country, to improve quality of life, to generate high income, to escape the middle-income trap, and to ensure well-being for all Thais ■Transport Infrastructure Development Plan: > Project will reduce logistical costs, increase transportation speed of goods and people, as well as connect Thailand to neighbors along the East-West and North-South Economic Corridors ➤ Public Transport Infrastructure Investment 2015 to 2022: worth Bt2.59trn ■ Eastern Economic Corridor (EEC): Area for facilitating and attracting investment in 10 innovative target industries to transform Thailand into Thailand 4.0 ■ Digital Economy: > NBTC awarded mobile licenses in various spectrums and launched 5G ➤ Government plans to adapt National Digital ID to speed up the process towards digital economy ■ BOI Measures for Supporting Private Investment: Tax and non-tax incentive measures to support private investment, such as Special Economic Zones (SEZS) (10 provinces, including Tak, Mukdahan, Sa Kaeo, Songkhla, Trat, Chiang Rai, Kanchanaburi, Nong Khai, Nakhon Phanom, and Narathiwat) ■Ten targeted industries as new engines of growth: Next Generation Automotive, Smart Electronics, Affluent Medical and Wellness Tourism, Agriculture and Biotechnology, and Food for the Future; New S-Curve (for new growth) consists of Robotics, Aviation and Logistics, Biofuels and Biochemicals, Digital, and Medical Hub ■Additional Incentives: Biotechnology, Nanotechnology, Advanced Materials Technology, and Digital Technology ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■ Promote Establishment of International Headquarters (IHQ) and an International Trading Center (ITC) in Thailand: Help Thailand become a key trading nation in the region ■ ASEAN Economic Community (AEC): Since December 2015, ASEAN has transformed into the "ASEAN Economic Community," with free movement of goods, services, investment, and skilled labour, and a freer flow of capital; Strategic measures under the five characteristics in the AEC Blueprint 2025 will be operationalised through sectoral work plans and their implementation and monitored through the AEC 2025 Monitoring and Evaluation Framework ■Free Trade Area (FTA): Already signed 14 FTAS (18 countries) 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 studying with Comprehensive and Progressive Agreement of Trans-Pacific Partnership (CPTPP), Gulf Cooperation Council (GCC), African Continental Free Trade. Agreement (AfCFTA) ■ Age Society: Mandatory retirement age for government and state enterprise officials will be extended from 60 to 63, effective in 2024 ■ Energy Policy: Reform petroleum concessions and energy price structures, including an LPG subsidy ■Tax Reform: Reform tax collection, generate sufficient revenue for the government, and boost competitiveness for local businesses, especially SMEs ■Constitution: National assembly seeks to amend the constitution section- by-section บริการทุกระดับประทับใจ Sources: Newspaper and KResearch (as of May 2023) 136#69K KASIKORNTHAI Government Policy: Short-term Policies ■Government Budget: ➤ Fiscal budget deficit in FY2023: Plan is for Bt695bn deficit to provide additional supports to stimulate Thai economy after COVID-19 outbreak ■■■ Short-term Stimuli: ➤ Welfare Card: Give Bt200-300 a month to each welfare smart card (14.5 million people) for purchase of necessary goods for those earning less than Bt100,000 annually; give Bt500 wallets to help with transportation costs Thailand Plus Package: attract foreign investment, especially to expedite investments from companies seeking to relocate as a result of ongoing trade war ➤ Cash handout for workers not covered by SSF: Bt5,000 monthly payments for 3 months to informal workers affected by COVID-19 (April-June 2020) Supporting tourism: Subsidies for domestic tourists (Moral Support & We Travel Together campaigns) (July 2020 to April 2021); "Special Tourist Visa" for long- staying visitors (90-day stay in country, which can be extended twice, each for an additional 90 days. Visa costs Bt2,000 per 90-day extension) ➤ Property stimulus package: Property transfer fees reduced from 2% to 0.01% and mortgage fees reduced from 1.0% to 0.01% for buying condominium units priced at not over Bt3mn (Jan - Dec 2022) ▸ Measures to help farmers: Price insurance for agricultural plants such as rice, rubber, oil palm, cassava, and corn ➤ Measures to help flood victims 2022: Package of 14 tax measures including Bt100,000 for house repairs and Bt30,000 for car maintenance to be deducted from taxable income ■Short-term Stimuli (continued): ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ➤ Projects to boost domestic consumption: 1) "Half-Half" scheme: a co-payment for food and general products subsidizing half of the purchase price - Phase 1&2: Bt3,500 to 15 million people (October 2020 - March 2021) - Phase 3: Bt4,500 to 31 million people (July - December 2021) - Phase 4 Bt1,200 to 29 million people (March-April 2022) - Phase 5 : Bt800 to 26.5 million people (September - October 2022) 2) "Shop Dee Mee Kuen" - a tax deduction for spending 2.1) 2022: up to Bt30,000 (1 January - 15 Feb 2022) 2.2) 2023: up to Bt40,000 (1 January - 15 Feb 2023) 3) Purchasing power scheme of 3.1) State card holders: Bt400 to 13.34 million people (September - October 2022) 3.2) People classified as needing special help: Bt400 to 2.23 million people (September October 2022) Projects to boost travel: 1) We Travel Together: 40% of hotel expenses, or up to Bt3,000 per room per night and food coupons of up to Bt600 a day (5th phase: February-September 2023) 2) Tour Travel Thai campaigns: 40% of the tour package price, or up to Bt5,000 per person Measures to help people with rising living costs: 1) State welfare cardholders: Bt100 subsidy for cooking gas and up to Bt100 for water bill (October 2022 - April 2023) 2) Vendors with state welfare cards: Bt100 subsidy every 3 months for cooking gas (January-March 2023) 3) Vulnerable groups: electricity subsidy (using electricity below 300 units per month): bill subsidy since April 2023 4) Electricity bill subsidy of Bt150 in May 2023 Sources: Newspaper and KResearch (as of January 2023) บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Ongoing Government Measures to Assist Cost of Living Household Assistance Energy Prices 39 35 TITTITOL-uer 19 222222 25 Sep-10- May-11 Jan-12- Sep-12- May-13- Jan-14 Measures why Sep-14- May-15- Jan-16 Sep-16- May-17- Jan-18 Sep-18- May-19- Jan-20 Sep-20 May-21 Jan-22- Sep-22- 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: ➤ Extend Bt5 per litre excise tax cut for diesel until July 20, 2023 ➤ Decreased retail diesel price to Bt32.50 per liter (Effective on May 4, 2023) 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) Retail Diesel Price Value-added-tax (VAT) Rate On August 24, 2021, the Government announced the following VAT Rates: ■Maintain the 7% value-added-tax (VAT) rate until September 30, 2023 Source: The Census and Economic Information Center (CEIC), Electricity Generating Authority of Thailand (EGAT), newspapers complied by KResearch บริการทุกระดับประทับใจ 137 138#70K KASIKORNTHAI Public Transport Infrastructure Investment Type of Projects Source of funds 7. Others 7% 1. High- speed Rails. 33% State Enterprise PPP 22% 12% TFF fund 2% Total projects of "Thailand strategic development of transport infrastructure 2015 to 2022" master plan 6. Air Transport 6% 5. Marine Transport 6% 4. Dual- Track Railways 15% 3. Bangkok and Mass- Transit system 16% 2. Motorway & Roads 17% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Project Detail (Total Budget) LLA 1. High-speed Rails (Bt1,006.7bn) 2. Motorway & Roads (Bt512.3bn) 4. Dual-Track Railways (Bt438.2bn) 5. Marine Transport (Bt187.6bn) Gover Government Budget 29% nment Loan 35% 3. Bangkok and Mass-Transit system (Bt476.7bn) 6. Air Transport (Bt183.5bn) Total Budget Number of projects Total disbursement Total projects 119 Bt3.02trn Type of Projects 7.Others 6.Marine transport 5.Dual-truck railways 20% 1.High speed rails 29% For 2023, public infrastructure investment is estimated to be B169bn or 2.6% higher than 2022* 4.Motorway & Roads 16% 3.Air- transport 27% Project Detail (Expected disbursement in 2023) High-speed Rails (Bt48.4bn) Motorway & Roads (Bt26.7bn) Bangkok and Mass-Transit system(Bt8.3bn) Dual-Track Railways (Bt33.4bn) 2.Bangkok & Mass-transit system 5% Air Transport (Bt45.0bn) Marine Transport (B3.3bn) Expected in 2023 Number of projects Total projects 18 Total disbursement Bt167bn Source: Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022 master plan) and estimated by KResearch (May 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 139 K 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 Notes: 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 -Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year - Projects that were delayed or terminated by Cabinet are not included - The budget of Bt1.91trn referring "Thailand strategic development of transport infrastructure 2015 to 2022 master plan" are excluded High-speed rails (Bt693.9bn) and Suvarnabhumi airport (Bt79.5bn), but our estimation include both of these projects Source: Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022) Note: *KResearch projected as of May 2023 บริการทุกระดับประทับใจ 140#71K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK On-going highlight projects under construction in 2023* Projects under construction Motorways/Expressways Rama III Dao Khanong Bang Yai Kanchanaburi (M81) Expected completion year Note 2023 89% in progress 2024 87% in progress 2025 44% in progress 2026 Bang Khun Thian - Ban Phaeo (M82) E Lop Buri-Pak Nam Pho Bang Bua Thong-Bang Khun Thian (M9) Bang Yal- Kanchanaburi Motorway Mabkabao-Jira Junction Bang-Pa-In Nakhon Ratchasima Motorway Bangkok-Nakhon Ratchasima Laem Chabang deep sea port development phase 3 High speed rails Thailand Chinese (Bangkok - Nakhon Ratchasima) 2027 16% in progress Bangkok-Rayong (3 Airports) 2029 Mass - transit system and commuter rail lines Pink line (Khae Rai-Min Buri) 2023 94% in progress Purple line (Tao Poon-Racha Burana) 2027 7% in progress Lad Prao-Samrong Nakhon Pathom-Hua Hin Suvarnabhumi Airport (Phase II) Thailand Cultural Center- Min Buri Map Ta Phut deep sea port phase Dual-Track Railways Nakhon Pathom - Hua Hin 2023 100% in progress Flua Hin - Prachuap Khiri Khan Lop Buri Pak Nam Pho 2023 77% in progress MabKabao Jira Junction 2023 95% in progress Prachuap Khin Khan- Chumphon.. Khae Rai-Min Buri Dual-Track Train Prachuap Khiri Khan - Choom Porn 2023 94% in progress Mass-Transit System and Commuter Train Ban Pai-Nakorn Panom 2026 Den Chai-Chiang Rai 2028 High Speed Train Airport Air transport Suvarnabhumi Airport 3rd runway 2023 64% in progress Motorway U-Tapao Airport 2025 Single Rail Transfer Operator Intermodal Facility Marine transport Laem Chabang Phase 3 2025 6% in progress 2026 39% in progress Source Ministry of Transport and KResearch (May 2023) Notes: Projects that visibly have construction progress on-site or have been stated in official documents that it had been constructed *Only highlight/Mega projects are shown in this presentation Map Ta Phut Phase 3 บริการทุกระดับประทับใจ K KASIKORNTHAI Upcoming Infrastructure Projects TOR Process/ Bidding Process /Land reclamation /Preparing for construction Air Transport: Don Mueang Airport Phrase 3 Motorways: Kratuu-Pathong (Phuket) Mass-Transit System and Commuter Rail Lines: Orange line (Bang Khun non - Cultural center) TOR process TOR process Expected to Status start construction Note 2024 2024 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 2023 Red line (Taling Chan - Salaya) TOR Process + Land reclamation TOR Process + Land reclamation 2023 2023 Expect to open bidding by H1/23 Projects Preparation for approval by Cabinet/ PPP Process /EIA Process/Feasibility Plan Status ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Upcoming Infrastructure Projects by Areas Denchai-Chiang Rai-Chiang Khong High speed train Bangkok to Chiang Mai Light rail in Chiang Mai Regional airport development (Chiang Mai) Denchai to Chiang Mai Pak Nam Pho to Denchai Khon Kaen to Nong Khai Banpai-Mukdahan-Nakhon Panom Light rail in Khon Kaen Regional airport development (Khon Kaen) Jira to Ubon Ratchathani Light rail in Nakhon Ratchasimal Orange Line (Bang Khun Non to Thailand Cultural Center) Purple Line (Tao Poon to Rat Buran: Dark Red Line (Rangsit to Thammasat University) ITV Rangsit to Eang Pain Bangkok to Mahachai Nakhon Pathom to Cha-am Red Line (Bang Sue to Hua Mak and Bang Sue to Hua Lamphong) Red Line (Taling Chan to Siriraj and Taling Chan to Salaya) Donmuang Airport Development Phase 3 and Suvarnabhumi Airport U-Tapao International airport 141 High-Speed Rails: Thailand-Chinese F2 (Nakhon Ratchasima - Nong Khai) Bangkok-Rayong (3 Airports) F2 Air Transport: Suvarnabhumi Airport Phase 3 (North building expansion) Suvarnabhumi Airport (East expansion) Motorways: Bang Bua Thong-Bang Khun Thian (M9), Srinakarin-Suvarnabhumi (M7) Rangsit-Bag Pa In (M5) Nakhon Pathom - Cha am (M8) Dual-tracks Railways: Khon Kean-Nhong Kai, Pak Po-Den Chai (*Priorities) Jira-Ubonracha Thani Den Chai-Chaingmai, Choom Porn-Surat Thani, Surat Thani-Song Khla, Had Yai-Padang Besar Mass-Transit System and Commuter Rail Lines: Red line (Bangsue-Phayathai-Makkasan-Huamark) Dark red line (Bangsue-Hua lamphong) Grey line (Watcharapol -Thong Lo) F1 Brown line (Khae Rai-Lam Sali) May be asked for approval by Cabinet in 2022 (Q4) Feasibility plan Expect to open bidding by H1/23 Preparation for approval by Cabinet PPP approved +Preparation for approval by Cabinet EIA process Preparation for approval by Cabinet (H1/23) PPP process Preparation for approval by Cabinet EIA approved EIA process High speed train Bangkok to Hua Hin 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 Preparation for approval by Cabinet Feasibility plan Feasibility plan บริการทุกระดับประทับใจ Source: Ministry of Transport and KResearch (May 2023) Notes: Some projects are expected to be delay due to COVID-19 situation 142#72K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Eastern Economic Corridor (EEC) - Three eastern provinces: Chachoengsao, Chon Buri, and Rayong ■ Objectives: To facilitate and attract investment in innovative target industries aimed at achieving "Thailand 4.0", an innovation driven society (the 12 industries are Next-Generation Automotive, Smart Electronics, Medical and Wellness Tourism, Food for the Future, Robotics, Aviation, Agriculture & Biotechnology, Biofuels & Bio Chemicals, Digital, Medical, Defense, and Education & Human Resource Development) ■ Key Development Plan: An expansion of existing transportation facilities, plus new investment in logistics systems to transform the EEC area (13,266 square kilometer) into a regional center for trade, investment, and tourism ■ Approved Investment: Bt1.8 trn (2018-2022) from (1) BOI's approved projects (private sector investment) Bt 1,091 bn (2) infrastructure investment under Public Private Partnership (PPP) Bt 656 bn and (3) government investment from integrated budgeting Bt 95 bn. ■Investment Incentives: EEC privileges corporate income tax (CIT) exemption of up to 13 years and additional 50% CIT reduction for up to five years for some projects; 15-year CIT exemption for qualified projects under Thailand Competitive Fund (R&D investment); a flat tax rate of 17% personal income tax (PIT) for experts/specialists; long-term land leases (up to 99 Years) D Four Core Areas - 15 Crucial Investment Projects* 'A' Chachoengsao Chonburi 1 U-Tapao airport and aircraft maintenance 2 Sattahip commercial seaport Laem Chabang port phase #3 Map Ta Phut port phase#3. 5 High-speed rail-east route 6 Double-track railway ++++ Highways and motorway Next-generation automotive (EWAV) Aviation industry, Robotics, Smart electronics 8 9 10 11 Advanced petrochemical and Bioeconomy Medical hub Rayong A 呔 12 Tourism Approved Investment Amount (Bt1.8 trillion 2018-2022) Approved infranstructure investment under PPP Bt 656 bn Government's approved 0 investment Bt 95 bn BOI's approved investment Bt 1,091 bn 13 Global Business Hub/Free Economic Zone 14 New Cities, Inclusive growth 15 Public Utilities Source: The Board of Investment of Thailand (BOI), and The Eastern Economic Corridor Office of Thailand (EECO) presentation and KResearch projected (as of November 2022) บริการทุกระดับประทับใจ K KASIKORNTHAI EEC Progress Projects ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Amount Owner Contract Signed Name of the selected JV Beginning Construction Expected project completion High-Speed Rail Linking 3 Airports Bt224.5bn State Railway of Thailand Oct 2019 Asia Era One Co., Ltd (CP led consortium consisting of CP, Italian Thai, CH. Karnchang, China Railway Construction Corp) 1Q23 2029 U-Tapao Airport and Aviation City Bt290bn Royal Thai Navy Jun 2020 U Tapao International Aviation Co., LTD (Bangkok Airways led Consortium consisting of Bangkok Airways, BTS, Sino-Thai) 2H23 2026 U-Tapao MRO Bt 8.4bn Royal Thai Navy TBC (Maintenance, Repair Overhaul) To Launch Term of References (TOR) for bidding in June 2022 2025 GPC Nov 2021 Laem Chabang seaport (3rd Phase) Bt114bn Port Authority of Thailand (Gulf Energy Development Pcl + PTT Tank Terminal China Habour) 4Q23 (F Dock) 2025 (for F1 Dock) and for F Dock Development Aug 2020 C NNC (NTL Marine+Nathalin + Zhonggang Construction) for Land reclamation project 2Q21 (Land reclamation) 2029 (for F2 Dock) Bt47.9bn Map Ta Phut seaport and (3rd Phase with Phase 3.1 & 3.2) Industrial Estate Authority of Thailand Oct 2019 and PTT Tank Terminal + Gulf Energy Development Pcl 3Q21 2025 for Land reclamation and Natural gas harbor 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 May 2023 บริการทุกระดับประทับใจ 143 144#73K KASIKORNTHAI Thailand Economic Figures บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Currency and Interest Rate Outlook (As of July 2023) USD/THB: End Period ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Rate Trend Bt 332 371 33 30,60 32.68 135.97 35.84 32.91 32.66 32.55 29.98 29.95 33.41 34.633.50-34.00 10.00 Fed Funds rate BOTS 1-Day Repurchase rate 5.25-5.50 5.00 2.25 2.00 4.25-4.50 1.50 1.50 1.50 1.50 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 1.25 1.25 2.25 29 0.00 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-201 Dec-21 Dec-22 Dec-23F 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22F 4Q23F USDT HB ■ Baht weakened amid uncertainties from Fed moves and Thai internal factors pushing THB above 35.00 per USD late-June However, at 2023 year-end, Baht could reach 33.50-34.00 per USD, as the Thai economy continues to recover, thanks to strong support from tourism recovery, amid some pressure from slowed exports ■ Recently, Baht has moved correlatedly with gold price, while the weakening of the Yuan and Yen put pressure on Asian currencies ■ The Fed paused its rate hike in June, but Fed's dot plots said the hiking cycle has not been over yet with two more rate hikes, but the markets expect only one more rate hike ■Fed's interest rates at the end of 2023 are expected to be 5.25-5.50% ■ BOT expressed a hawkish tone for its gradual hiking path, amid decreasing inflation ■ BOT's interest rate is expected to be 2.25% at the end of 2023 Note: F is estimated by KBank Capital Markets Research (as of July 5, 2023) บริการทุกระดับประทับใจ 145 146#74K KASIKORNTHAI Monthly Economic Conditions: March 2023 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2022 ■In March 2023, private Units: YoY %, or indicated otherwise Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 consumption remained Private Consumption Index (PCI) 8.5 10.8 8.9 12.1 10.2 14.9 17.4 11.7 6.6 7.1 2.5 4.0 3.9 6.0 Non-durables Index 2.1 -5.0 2.2 3.8 1.5 7.3 8.0 5.5 2.9 2.8 0.3 2.3 3.6 2.6 stable, while private Durables Index 7.4 0.2 3.0 11.6 1.9 13.6 41.5 10.4 2.6 0.3 -5.6 0.4 4.3 3.0 Service Index Passenger Car Sales Motorcycle Sales 22.9 9.8 17.3 26.5 27.3 32.8 36.8 28.9 24.7 23.0 19.9 22.7 24.2 28.2 10.6 26.9 7.1 6.9 13.6 18.6 57.2 27.7 2.8 -11.0 -1.2 -9.3 -22.7 -26.1 12.0 -2.2 10.8 24.7 -3.3 28.2 77.0 9.7 1.8 3.9 -13.7 -1.2 14.9 8.7 Private Investment Index (PII) 2.7 1.4 0.3 3.4 5.0 4.0 10.4 5.0 0.2 -1.6 -4.3 -2.8 0.1 -1.6 Construction Material Sales Index 3.3 -3.8 2.9 -2.2 4.1 16.9 10.9 2.6 4.1 11.1 -3.6 -1.1 0.2 -0.8 Domestic Machinery Sales at constant prices 8.6 5.0 1.2 5.1 10.1 13.8 27.7 12.5 3.6 2.9 0.0 0.2 3.4 1.1 Imports of Capital Goods at constant prices -2.7 -4.9 -4.2 2.5 2.2 -5.7 1.3 -0.8 4.3 -9.2 -13.6 -9.5 -2.6 -3.6 Newly Registered Motor Vehicles for Investment 8.6 5.0 2.5 7.4 4.8 5.9 34.6 23.8 -4.0 -10.1 -8.5 -14.7 -10.7 -17.7 Manufacturing Production Index 0.4 10.2 -0.4 -2.3 -0.5 6.0 14.6 2.9 -42 -5.4 -8.4 -4.8 -2.4 -4.6 Capacity Utilization 62.8 63.9 63.3 61.9 63.2 63.3 64.9 63.8 60.5 60.1 60.0 60.4 61.6 60.8 Agricultural Production Index 0.9 12.8 0.6 6.3 6.6 -1.5 -6.5 -1.6 2.0 2.6 4.2 4.0 8.7 9.9 Agricultural Price Index 11.6 8.9 10.2 9.2 11.3 18.2 23.3 18.9 18.3 13.3 7.5 1.5 4.2 -8.7 Tourist arrival growth 2506.6 3026.6 3339.0 8518.3 13388.6 6125.0 7679.7 10598.0 7178.2 1816.0 872.0 1501.9 1283.3 953.0 Exports (Custom basis) 5.5 19.5 9.9 10.5 11.8 4.3 7.5 7.8 -4.4 -6.0 -14.6 4.5 -4.7 4.2 Price 4.2 4.5 5.0 4.2 6.3 4.7 4.6 4.0 4.0 3.0 3.2 3.0 2.1 0.9 Volume 1.3 13.8 1.5 6.0 5.6 -1.0 3.7 4.7 -6.3 -8.0 -14.0 -6.2 -6.0 -5.8 Imports (Custom basis) 13.6 18.0 21.5 24.1 24.5 23.9 21.2 15.6 -2.1 5.6 -11.9 5.5 1.1 -7.1 Price 13.0 15.4 15.4 14.6 15.9 14.3 15.0 14.2 14.0 13.3 13.5 8.9 5.2 0.6 Volume 2.0 2.7 4.7 8.2 9.5 8.0 7.7 5.5 -6.7 -1.5 -18.0 0.2 -3.3 -6.3 Trade Balance ($ millions) (Custom basis) -16,123 1,459 -1.908 -1,874 -1,529 +3,661 -4,215 -853 -596 -1,342 +1,034 -4,650 -1,113 2,719 investment declined MoM in line with manufacturing sector ■Manufacturing production decreased on the back of a slowdown in global demand, while agricultural production continued to improve ■Thailand's current account saw larger surplus consistent with improving trade balance ■Thai headline and core inflation declined, with high base last year and softened energy prices Current Account ($ millions) -16,942.4 1,102.2 -2,020.9 -2,925.9 3,079.8 -4,035.7 3.578.6 69.5 510.6 -550.7 967.4 -2,148.9 1,332.3 4,778.6 Headline CPI 6.08 5.73 4.65 7.10 7.65 7.61 7.86 6.41 5.98 5.55 5.89 5.02 3.79 2.83 Core CPI 2.51 2.00 2.00 2.28 2.51 2.99 3.15 3.12 3.17 3.22 3.23 3.04 1.93 1.76 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ 147 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KR Household Economic Condition Index (KR-ECI) ■ In March 2023, the KR-ECI and 3-month Expected KR-ECI decreased to 35.8 and 37.6, from 36.6 and 38.6 reported for February 2023, as Thai households became more concerned about their debt burden. Nonetheless, the perception of households towards income and employment is improving in line with Thailand's continued economic recovery, driven by the tourism sector KR Household Economic Condition Index (KR-ECI) Components of 3-month Expected KR-ECI KR-ECI 50.0 48.0 46.0 44.0 42.0 40.0 38.0 36.0 34.0 32.0 --KR Household Economic Condition Index (KR-ECI) 30.0 - Source: KResearch -3-month Expected KR-ECI Current KR-ECI 23 Feb-23 35.5 Household savings Household income and employment 46.2 46.9 42.3 3-month Expected KR-ECI 40.2 Household debt 381.6 37.4 202 Household expenses excluding debt 20.5 17.9 201 30.9 7.3 Prices of consumer goods 30.3 27.7 Source Research 0 10 20 30 40 50 0 10 20 30 g E 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 40 39.5 29.1 48.9 50.8 *Mar-23 Feb-23 50 60 148#75Million Person CCI 90 85 80 75 70 65 60 55 50 50 45 40 35 30 %MoM % YoY of MPI K KASIKORNTHAI Economic Condition Highlights: March 2023 30.0 20.0 10.0 0.0 -10.0 -20.0 -30.0 Mar23 MPI and CAPU declined in almost all categories, due to weaker demand in global market ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 4Q22 Construction area permissions continued to decline, which impacted investment in construction ཁཁུངས་བ་པའི་རིག་མིང་གཅིག་གཟང་དམིག་པར་ བྱ་ Jan-17 Oct-17 Jul-18 Apr-19 Jan-20 Oct-20 Jul-20 Apr-22 Jan-23 35.0 1Q09 1010 1011 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 0.67 0.17 -0.07 ▬▬▬▬▬▬▬▬▬MPI (Ihs) ▬▬▬▬▬▬▬▬▬▬▬%Capacity Utilization (rhs) Construction areas permitted Nationwide Condominium Registration Nationwide Mar23 Headline and core inflation decreased, with high base last year and decelerated domestic retail diesel price 1Q23 Price of housing categories is close to the previous quarter, whereas land prices continue to drop 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -20 2.83 1.75 Jan-May- Sep- Jan May- Sep- Jan May- Sep- Jan May- Sep- Jan- May- Sep- Jan-May- Sep-Jan- 17 17 17 18 18 18 19 19 19 20 20 20 21 21 21 22 22 Head in CA MM- Head in eCR Y rh 22 23 CareCPIM M CareCPI Y 20.0 10.0 0.00 0.0 -3.00 -4.00 -5.00 -10.0 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ New Housing registered in BKK and Vicinity May 1Q09 4Q09 3Q10 2011 1012 4Q12 3Q13 2014 1Q15 4Q15 3016 2017 1Q18 4Q18 3019 2020 1021 4021 3Q22 Single House (With Land) Town house (With Land) Land K KASIKORNTHAI Economic Condition Highlights: March 2023 Mar23 BSI and CCI continued to improve, in line with consistent recovery of Thailand's economic activities ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Mar23 Public investment declined MoM along with manufacturing production, due to decreasing global demand -וווווו 70 53.8 55 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 50.0 20.4% 40.0 8.9% 9.1% 30.0 Consumer Confidence Index (CCI) Business Sentiment Index (BSI) PREROGOR 45 52.9 40 90 BSI % YoY 60% 28.2% 40% 20% 6.0% 2.6% 3.0% 0% -20% -40% -1.5% -0.7% -2.6% -17.7% -60% PCI PPI Registered Construction Import of Motor Materials Capital Vehicles Consumer's Consumer's Consumer's Non Durable Durable Service Goods Mar23, Foreign tourist arrivals showed strong rebound, especially in Chinese tourists Mar23 Exports contracted for the sixth consecutive month, but at a rate lower than expected as some key shipments improved 20.0 29.9 32.5 35.6 10.0 0.0 2015 2016 2017 No of Foreign Tourist Arrival ■2Q22 3Q22 4Q22 ■1Q23 ■Feb-23 Mar-23 2507% 100% Export Value (USD Million) 1282% 50% 32,000 28,000 953% 0% -83.2% 24,000 38.2 -93.6% -50% 20,000 39.8 5 -100% 16,000 12,000 6 -150% 8,000 2018 2019 2020 2021 2022 3M23 Mar23 % Tourist Arrival YoY (RHS) 4,000 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ 0 Jan-17 Sep-17 May-18 Exports Jan-19 Sep-19 Exports excluding gold May-20 Exports % YoY Jan-21 % YoY 60 50 40 30 20 -4.2% 10 0 -10 -20 -0.4% -30 -40 Sep-21 May-22 Jan-23 Exports excluding gold % YoY 150 4.8 4.5 -2.1 149#76K KASIKORNTHAI Exports and Imports: 1Q23 Exports by Country ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Imports by Country China Others 35.4% ASEAN 19.6% CLMV 9.9% China 8.8% Others 23.8% Middle East 18.7% 10.3% Taiwan 4.3% Middle East 3.4% Hong Kong U.S.A. 2.9% Australia EU 2.9% 6.6% Japan 13.1% 7.4% U.S.A. 6.4% ASEAN 18.4% CLMV 5.7% EU Japan 6.5% 11.6% Top 10 Exports by Product (Customs Basis) Top 10 Imports by Product (Customs Basis) 1Q23 1Q23 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight % YoY USD Millions Weight % YoY Total Exports, 70,280 100.0% -4.5% Total Imports, 73,324 100.0% -0.5% Motor cars, parts and accessories 7,342 10.5% 4.4% Crude oil 8,956 12.2% 11.3% Automatic data processing machines and Machinery and parts 5,198 7.1% -4.4% 4,617 6.6% -15.0% parts thereof Electrical machinery and parts 4,964 6.8% -2.2% Precious stones and jewellery 4,252 6.0% -22.8% Chemicals 4,934 6.7% -8.6% Rubber products 3,433 4.9% -4.6% Electronic integrated circuits 4,679 6.4% 3.6% Electronic integrated circuits 2,299 3.3% 12.9% Air conditioning machine and parts thereof 2,273 3.2% -26.5% Iron, steel and products 3,569 4.9% -8.8% Polymers of ethylene, propylene, etc in Natural gas 2,970 4.1% 1.0% 2,233 3.2% -6.2% Other metal ores, metal waste scrap, and primary 2,943 4.0% -21.1% product Machinery and parts thereof 2,131 3.0% 4.0% Vegetables and vegetable products 2,553 3.5% 31.3% Refine fuels 2,127 3.0% -18.9% Chemical products 2,056 3.0% -8.2% Jewellery including silver bars and gold 2,521 3.4% -17.7% Source: Ministry of Commerce บริการทุกระดับประทับใจ K 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% 5.3% 5.2% 5.0% 8.2% 9.7% 8.2% 11.3% 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 Total Exports, Custom Basis USD Millions 2022 Weight 2022 Import, Custom Basis % 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% primary Iron, steel and products 15,581 5.1% -5.2% Refine fuels 10,105 3.5% 14.2% Jewellery 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 บริการทุกระดับประทับใจ 151 152#77% YoY K KASIKORNTHAI Export and Import Growth by Key Destinations Export growth by key destinations ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Import growth by key destinations 35% 2018 2019 2020 2021 2022 3M23 35% 2018 2019 2020 2021 2022 3M23 25% 15% 5% 25% 5% 8.18% 3.52% 2.16% 5% 55% -5% -0.24% -2.20% -2.20% -5% -3.88% -4.50% -6.30% -7.40% -0.73% -5.54% -0.50% -15% -15% ASEAN-5 CLMV EU China Japan USA Total Export ASEAN-5 CLMV EU China Japan USA Total Imports 2022 3M23 2022 3M23 Value Value Value Value Exports Imports Share Share (Million (Million (Million Share (Million Share USD) USD) USD) USD) ASEAN-5 40,743 14.19% 10,220 14.5% ASEAN-5 37,046 12.2% 9,239 12.6% CLMV 31,147 10.9% 6,957 9.9% CLMV 15,954 5.3% 4,220 5.8% EU 22,794 7.9% 5,753 8.2% EU 18,244 6.0% 4,797 6.5% China 34,390 12.0% 7,726 11.0% China 71,014 23.4% 17,479 23.8% Japan 24,669 8.6% 6,467 9.2% Japan 34,584 11.4% 8,496 11.6% USA 47,527 16.6% Total 287,068 100.00% 11,449 16.3% 70,280 USA 18,026 5.9% 4,688 6.4% 100.00% Total 303,191 100.00% 73,324 100.00% Source: Ministry of Commerce บริการทุกระดับประทับใจ K KASIKORNTHAI Challenges: Exports ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2023, Exports are expected to experience negative growth amid several uncertainties Exports Short-term Challenges Key Structural Problems Key Affected Products Short-term Measures from Authorities and Related Parties Long-term Measures from Authorities and Related Parties ■Global economic recession ■High uncertainty surrounding the banking turmoil in the West ■ Ongoing geopolitical risks ■Declining commodity prices ■THB volatility ■High dependence on China's market ■Changing demand in electronic products and loss of competitiveness in some areas (e.g. HDD) ■High crop surplus among competitors ■Electronics and Electrical Appliances (Structural Challenge) ■Fishery and Agriculture Products (US SIMP) ■Steel and Aluminum (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 154 153#78Million Persons K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Economic Condition Highlights: CAPEX and Investment Cycle Capacity Utilization by Key Industries Investment value of BOI-approved applications (Total)* food baverages tobacco 31.6 textiles paper and paper products 48.7 rubber and plastics products 46.4 basic metals motor vehicles, trailers and semi-trailers Other manufacturing 45.6 49.6 55.9 61.7 Investment Value (Bt Bn) 700.0 631.1 618.6 511.9 459.5 447.4 500.0 361.4 300.0 100.0 -100.0 2017 2018 2019 2020 2021 2022 Investment value of BOI-approved applications (by Industry)* 68.8 300,000 80.2 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 3M23 2022 2021 Investment Value (Bn) 250,000 200,000 150,000 100,000 58,699 37,134 50,000 25,252 85,503 80,970 54,933 276,120 0 0 Agriculture Minerals&Ceramics Light Industry Metal Processing Electronics&Electrical Chemical Plastic Paper Service & Infrastructure Technology and Innovation 2018 2019 2020 2021 2022 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 บริการทุกระดับประทับใจ K KASIKORNTHAI Tourism ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thailand's tourism receipts will progressively increase in 2023, reaching 70% of the 2019 level %Tourism Revenue to GDP 20.0% 18.2% 17.7% -44.6% 11.5% 10.0% 5.7% 2.2% 6.6% 6.4% 0.0% 5.2% 22% 3.0% 0.69 3.1% 11.60% 7.40% 4.20% 3.6% 2018 2019r 2020 1.6% 2021r 2022e 2023f % Foreign tourism revenue to GDP -% Total tourism revenue to GDP % Domestic tourism revenue to GDP In 2023, KResearch projects the number of foreign tourists coming to Thailand may reach 28.5 million, or around 71 percent of the 2019 level Meanwhile, domestic travel is expected to report steady growth. Preliminarily KResearch projects Thais will make around 168.0-170.0 million domestic trips in 2023 No. of Foreign Tourists and Domestic Trips 50.00 166.0 172.7 40.00 38.20 30.00 90.6 39.92 20.00 53.0 11.14 10.00 6.70 0.42 0.00 2018 2019 2020 2021r 2022e 2023f No. of Foreign tourists (persons) No. of Domestic trips Note: As of April 2023 Tourism Revenue (Bt bn) 169.0 200 3,500 2,947 2,994 150.8 3,000 150 2,500 28.5 1,876 1,912 2,084 997 2,000 100 1,500 ,071 ,082 793 352 633 1,000 50 500 319 474 1,332 752 254 98 364 0 2018 2019 2020 2021r 2022e 2023f ■Foreign Tourism Revenue Domestic Tourism Revenue Total Revenue บริการทุกระดับประทับใจ 156 155#7930 10 -10 51 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: New project launching decreased in the first 2 months of 2023, compared to the high base in the last year 2006 2007 Supply Side: New Housing Completions and New Projects Launched in BMR* Outstanding Mortgage Loans to Individuals and Property Developers to GDP % of GDP 1,000 Units 30 ■New Housing Completions ■New Projects Launched 170 150 131133 130 117 110 102 132 90 66 101 70 50 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 25 26.9 20 16.8 15 124 111 125 14 114 10.4 119 108 133 10 127 107 115 118 112 92 5 4.1 0 8160.5 1993 13.0 1998 2003 -Loans to Property Developers 2008 2013 2018 2022 Housing Loans Demand Side: Transferred Properties in BMR* 1,000 Units 250 200 178 146 161 151 159 182 174 196 197 206 197 195 175 163 166 150 100 50 0 2008 2022 2M2022 13 16.0 2M2023 21.421.6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2M2022 2M2023 ■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 2022, still lower than pre-crisis level ■Supply Side: New housing projects launched in 2M23 decreased 18.8% YoY compared to the high base in the last year ■Demand Side: In 2M23, property transactions increased by 0.9%. However, rising living costs and high debts amid economic uncertainties may lead to more cautious buying homes later in 2023. ■Mortgage NPLs among Thai commercial banks was at 3.01% in 2022, compared to 3.52% in 2021 and 3.78% in 2020 Sources: National Economic and Social Development Council (NESDC), BOT, Real Estate Information Center (REIC), Agency for Real Estate Affairs (AREA), and KResearch Note: Including Condominium, Single House, and Townhouse; BMR = Bangkok and Metropolitan Area บริการทุกระดับประทับใจ K KASIKORNTHAI Household Borrowing ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL for Consumption Loans of Thai Commercial Banks % of Loans 25 Household Borrowing to GDP Old Definition New Definition % of NGDP 100 89.6 90.2 86.9 79.7 79.4 78.4 79.9 80 71.8 9.4 9.7 10.4 59.3 8.8 7.5 7.6 8.3 13.4 13.3 7.1 60 12.0 12.7 12.3 12.2 12.8 10.6 25.3 25.3 23.1 23.1 22.3 22.3 24.4 40 28.9 22.3 24.4 19.6 18.9 20 77 11.2 15.1 24.5 29.5 33.5 33.7 33.5 34.3 38.4 38.7 36.4 O G5 G 20 15 10 11.9 13.2 13.9 0 1994 1996 1997 2010 Commercial Banks 2012 2014 2016 2018 Non-Bank Fls SFIS Others 2019 2020 2021 2022 Saving Cooperatives --Total 19.39 Old Definition: Data from 1991 - 1997: lending from commercial banks and SFIs to individual persons for consumption only New Definition: Data from 2010 onwards: takes into account individual persons' outstanding loans from all types of financial institutions, including savings Co-ops and non-banks Cross-Country Comparison of Household Debt (as of 2021) Debt Service Ratio of Thai households % of GDP % 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 2001 2004 2007 2010 2013 2016 2019 2022 2.62 ■Household debt to GDP stayed at 86.9% in 2022, and is expected to remain high in 2023 ■Household borrowing to GDP is higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■Thailand's household debt to GDP is comparable to other countries*; debt service ratio of Thai households is still well below 40%, indicating the household debt situation is unlikely to trigger any problems in the foreseeable future ■NPL ratio for consumption loans of commercial banks fell to 2.62% in 2022 from 2.73% in 2021 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ 158 157#80K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT's Directional Papers on Sustainable Resolutions of Household Debts 1 . Existing NPLs Hard-to- (esp. those related to COVID-19) 2 solve/persistent 3 Fast debt creation with 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 Source: BOT, as of 14 February 2023 debts Starting with persistent debts from express/speedy cash and elderly customers • Helping debtors to make practical debt • repayment plans 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) Other debts not 4 yet Upcoming additional Debt Service Ratio or DSR and LTV ratios to ensure debtors' daily- life survival Risk-based pricing • . Promote responsible borrowing through literacy บริการทุกระดับประทับใจ 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) A possible lift in interest rate ceiling Risk-based pricing 159 K 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 Lending Criteria Price and Type of Properties 1st Contract NEW 2nd Contract 3rd Contract Onwards Min.Monthly Income New Bt15,000 Old Bt15,000 Personal Loans New Old LTV Limit LTV Limit LTV Limit House ≤ 100%* < Bt10mn Condo. ≤ 100%* 80-90% 80-90% 70% 70% Credit Line (times of average monthly income) Income Credit Line Credit Line <Bt30,000 ≤1.5 times Income < Bt30,000 > Bt10mn House & Condo. < Bt50,000 ≤ 3 times > Bt50,000 ≤ 5 times ≤ 5 times >Bt30,000 Credit Line ≤ 1.5 times ≤ 3 institutions ≤ 5 times Credit Line ≤ 5 times ≤ 90% 80% 70% 1) Under the new framework, LTV limit will be capped at 100% for the first contract of housing loans, and * loans for furniture and decorations can be added up to 10% of collaterals (old - no these conditions) 2) Prior to October 20, 2021, for the second contact, LTV limit is 80% if the first contract's installment payments are less than two years (old - three years); otherwise, LTV limit is 90% 3) Risk weight is 35% if LTV does not exceed its LTV limit; while the risk weight will increase to 75% for the loans for furniture and decorations of the first contract Notes: August 15, 2019: BOT relaxed the LTV rules for co-signers that have no ownership interest in the home being purchased April 2019: BOT tightened LTV criteria for mortgage loans, and raised down payment for the second contract onwards. Year 2009: BOT announced revised criteria in 2009-2010 on mortgage loan risk weights with a different effective date Year 2008: Risk weights for mortgage loans dropped from 50% to 35% under Basel II Criteria for Car Loans ■ Auto Registration Loans (Effective: February 1, 2019): Auto registration loan providers to be approved by Bank of Thailand and Ministry of Finance Regulated by Fiscal Policy Office Regulated by the BOT Picofinance* Pico Plus* Capital Fund Credit Line > Bt5mn > Bt10 mn > Bt50 mn Interest Rate Ceiling < Bt50,000 ≤ 36% < Bt100,00 36% for first Bt50,000 <28% for the amount in excess of Bt50,000 Depends on debt-servicing ability ≤ 24% ≤24% Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province บริการทุกระดับประทับใจ 160#81K 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 9.4 9.4 25 8.7 8.4 8.0 7.2 6.2 9 3 22.4 15 3 months 2050 19.1 14.9 10 0 India Indonesia Philippines Korea Malaysia Thailand Singapore Source: CEIC, KResearch (data as of February 2023) International reserves / External debts (% Ratio) % 120 100 81.2 80 60 40 31.3 20 0 India 74.0 60.0 40.5 97.9 100% 15.1 Indonesia Philippines Korea Malaysia Thailand Singapore Source: CEIC, KResearch (data as of December 2022) Indonesia South Korea Malaysia 12.7 2.3 Philippines Thailand 0.5 Vietnam Note: Retrieved from Asia Bond Online, based on latest available data Source: Asian Development Bank ■Thailand's economy and financial markets are able to withstand impacts from fluctuations in global liquidity due to: ■High import coverage (international reserves/monthly imports) compared with the IMF's three month import coverage guideline ■More than 100% of external debt covered by international reserves ■Low portion of foreign holdings in Thai government bonds compared with other countries บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Monetary and fiscal expansion raises financial stability concerns In contrast with the Fed, the BOT has maintained interest rate to support the economy amid COVID-19 outbreak Thailand has enough FX reserves to meet all internal and external obligations BOT Policy Rate FX Reserves ■3 months of imports Fed Funds Rate -Lower Bound Net Forward Position $ Billion 6.00 Fed Funds Rate -Upper Bound 5.00 $ Billion Reserves backing banknotes ■ST external debt 300 300 $252.1 bn $245.8 bn 250 250 4.00 % 3.00 200 200 75.7 150 216.6 223.4 150 $224.17 Billion 68.4 2.00 100 100 50 50 1.00 80.1 0 29.2 2022-end 28.6 0 0.00 April 2023 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 May 2023) Source: BOT and KResearch Last Update: May 5, 2023 161 Excess liquid assets in Thai commercial banks slightly rose 5,000,000 ■Due to high inflationary pressures, the Fed decided to raised Million Baht its policy rate to 5.00-5.25% in May 2023 ■Monetary easing leads to a massive exodus of capital from emerging markets and worsens exchange rate depreciation in 2022. However, Thailand's external stability will likely be maintained %LCR 200 192.5 187.7 189.5 190.4 183.5 184.7 190 4,000,000 176.9 178.1 173.8 180 3,000,000 170 160 2016 2017 2018 2019 Liquid Assets 2020 -LCR (%) 2021 2022 Jan-23 Feb-23 ■The Thai banking system excess liquidity rose slightly. The 2,000,000 CAR was good (18.75% as of February 2023) and NPL ratio was still manageable (2.73% as of 2022), with net profits of Bt210.1 billion in 2022 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 162#82Billion Baht Billion Baht K KASIKORNTHAI Other Figures 18,000 Thai Bond Market Size (Gov't and Private bonds) 16,000 14,000 12,000 10,000 8,000 6,000 53.9 52.4 4,000 2,000 0 1,200 1,000 800 600 88.8 91.0 90.9 63.3 64.4 64.8 69.4 69.6 70.2 72.9 74.5 73.6 78.1 78.7 90 15,603 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) Foreign Holdings of Thai Bonds 400 -1.0% 1.5% 1.1% 200 49 76 0 4.0% 5.9% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields % to GDP 100 80 ៖ ៖ ន ន 8 8 9 8 8 9 % %/33.5 3.0 2.5 2.0 1.7 1.8 1.9 2.0 2.1 2.1 2.2 2.3 2.4 2.5 2.5 2.8 1.5 1.0 0.5 0.0 0 6M 1Y --Dec 19 2Y 3Y Dec 20 4Y 5Y 6Y --Dec 21 7Y 8Y --Dec 22 9Y 10Y May 3, 2023 15Y Current Account and FX Reserve USD Billion 50,000 USD216.6 bn (2022-end) USD Billion 300,000 10% 40,000 8.3% 8.4% 8.2% 7.9% 7.4% 7.1% 6.9% 6.9% 8% 6.0% 6.4% 6.1% 6.3% 6% 4% 2% 0% % of Total Bond Outstanding 250,000 30,000 200,000 20,000 10,000 150,000 0 100,000 -10,000 50,000 -20,000 USD-17.2 bn (2022-end) -30,000 0 2017 2019 2021 Apr-23 1993 1997 2001 2005 2009 2013 2017 2021 2007 2009 2011 2013 2015 Foreign Holding Outstanding (LHS) Source: BOT and ThaiBMA % of Thai Bond Market (RHS) K KASIKORNTHAI Other Figures Million Baht 5,000,000 Housing Loans / GDP 4,000,000 3,000,000 2,000,000 17.7 17.4 18.0 18.3 19.4 1,000,000 0 บริการทุกระดับประทับใจ % to GDP 300,000 26.6 27.3 26.9 30 200,000 21.0 22.0 22.3 22.3 22.6 23.2 25 25 100,000 0 1.709.897 1.885,139 2.034,137 2,263,552 2,510,012 2.783.129 3.021.811 3,251,488 3,448,852 3,706,397 3.918,565 4.172.556 4.410.235 4,666,174 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Housing Loans for Personal Consumption (LHS) --% Housing Loans to GDP (RHS) Note Housing loans represent outstanding housing loans for personal consumption granted to individuals of householders by financial institutions (including Commercial banks, Finance companies, Credit financiers, SFIs, and Insurance companies but excluding Saving Cooperatives and others financial Institution) Source: BOT, NESDC 20 15 110 50 Current Account (LHS) FX Reserves (RHS) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Card Loans/GDP Million Baht 600,000 % of GDP 3.5 500,000 400,000 2.0 2.0 2.0 2.1 2.2 2.4 2.4 2.5 2.5 2.6 2.7 2.9 2.8 2.8 3.0 261,553 290,425 318,141 333,493 360,096 394,123 418,747 457,090 449,733 458,181 482,966 22110 2.5 2.0 1.5 1.0 0.5 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 Million Baht 900,000 0 800,000 700,000 600,000 500,000 400,000 2.2 300,000 200,000 100,000 0 1.7 2.1 1.9 2.4 2.3 2.3 2.3 2.3 257,129 299,139 312,851 318,354 332,996 % to GDP 6.0 4.4 5.0 3.7 3.4 4.0 2.3 3.0 2.0 354,243 383,303 579,911 580,383 707,715 349,152 1.0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Personal Loan Outstanding (LHS) ▬▬▬▬▬▬▬% Personal Loans to GDP (RHS) Note: 1) Personal Loans represent outstanding personal loans under supervision (including commercial banks and non-banks, excluding SFIs, saving cooperatives and others financial Institution) บริการทุกระดับประทับใจ 164 163#83K KASIKORNTHAI Other Figures Loans to GDP as of 2022 United States Thailand South Korea Japan Malaysia Singapore China 0 50 69.9 88.9 100.7 102.9 108.5 126.4 100 150 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Banks' Loan Growth and NPL Ratio % YoY 15 5.23 % of Total Loan 6 12 5 3.89 9 2.94 2.99 3.08 3.09 3.14 3.25 4 3.12 2.86 2.69 6 2.44 2.31 2.31 3 3 2 12.0 14.6 13.9 10.6 4.8 6.2 2.4 4.6 5.8 2.3 5.8 6.2 2.7 % of GDP 176.8 0 1 -0.7 -3 0 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 % YoY Loan Growth -% Gross NPL Ratio Note % YoY Net loans represent growth of net loans in 18 Thai commercial banks from C.B.1.1 Latest data for % Gross NPL is at 3.04% as of 2Q22. 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 GDP Per Capita Baht % YoY 21.1 250,000 -5 -10 -15 ៤៨៣ ០៣ ៩៨៦ ៩ 19.9 11.3 8.6 12.8 11.1 9.7 10.2 200,000 4.0 3.9 3.2 8.7 1.8 6.7 7.2 6.0 -1.1 1.7 150,000 5 5.8 14.3 11.0 9.5 4.8 8.0 9.4 6.2 9.2 5.4 Credit Card Loan Growth. Spending Growth -1.6 1.9 11.3 100,000 50,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 163,956 170,467 185,159 192,327 195,807 Note: The credit card statistics number includes foreign bank and non-bank credit cards Source: BOT, NESDC, NSO, CEIC Data, and KResearch K KASIKORNTHAI Other Figures Population and Labor force 5.7 5.4 5.2 2.9 % YoY 20 20 7.2 10 3.0 0 -7.5 202,151 213,586 225,095 236,861 243,705 225,311 N 231,986 248,635 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 GDP Per Capita % YoY บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Unemployment Rate Million Person % of Labor Force 70 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 2.50 50 2.00 1.93 1.69 40 1.50 1.50 1.32 30 1.04 20 1.00 0.68 0.66 0.72 0.84 0.88 0.99 1.18 1.05 0.98 10 0.50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ■Population (Age>= 15 years) Labour Force 0.00 2009 2011 2013 2015 2017 2019 2021 2022 Foreign Direct Investment Foreign Direct Investment Position by Countries Trillion Baht 10 15.2 13.9 8 7.5 6 4 % YoY 19.5 10.5 8.9 4.7 -1.3 -1.7 -0.4 13.4 -5 2 O 4.9 5.6 5.8 6.6 6.5 7.0 8.4 8.3 9.1 9.6 9.5 10.8 0 1225050574 100% 22.1 22.2 21.8 22.9 23.8 24.7 24.5 25.8 25.2 24.8 23.7 80% 9.6 8.2 7.9 8.1 7.5 6.6 6.7 6.6 6.2 6.1 6.3 60% 31.7 34.6 35.0 35.1 36.3 35.2 35.6 33.5 32.5 31.8 30.2 40% 3.9 4.4 17.0 1.9 1.6 16.1 16.0 20% 1.7 2.3 2.0 2.9 16.0 14.0 14.8 14.7 3.8 3.5 12.9 13.2 13.3 14.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FDI Position (LHS) % YoY (RHS) Note: 16.3 16.1 16.7 15.5 17.5 19.5 20.2 2015 2016 2017 2018 2019 2020 2021 2022 ■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 21.7 18.2 17.1 17.6 0% 2012 2013 ASEAN 2014 ■ EU Others 166 -10 -20 -30 165#84K 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 167 K KASIKORNTHAI DISCLAIMER: Bank of Sustainability EVCAR ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK This document is intended to provide material information relating to investments or products in discussion and as a reference during the discussion, presentation, or seminar only. It does not represent or constitute any advice, offer, contract, recommendation, or solicitation and should not be relied upon as such. In preparation of this document, KASIKORNBANK PUBLIC COMPANY LIMITED ("KBank") has made several crucial assumptions and relied on financial and other information available from public sources as of the date of this document. Therefore, KBank assumes no responsibility or liability and makes no representations or warrants with respect to the accuracy and/or completeness of the information described herein. Before making their own independent decision to make any investment or enter into any transaction, the recipient of this information ("Recipient") shall carefully review information relating to services or products of KBank, including but not limited to economic and market situations and other factors pertaining to the transaction as posted on KBank's website at URL www.kasikornbank.com and in other sources, and make their own investigation on all other information, documents prepared by other institutions, as well as consult with Recipients' financial, legal, or tax advisors on each decision. The Recipient understands and acknowledges that the investment or execution of the transaction may be a transaction with low liquidity and KBank shall assume no liability for any loss, damage, or expense of any nature incurred by the Recipient arising out of such investment or execution of the transaction. The Recipient also understands and acknowledges that the information so provided by KBank does not represent the expected yield or consideration to be received by the Recipient arising out of the investment or the execution of the transaction. Further, the Recipient should be aware that the transaction can be highly risky as markets are unpredictable and uncertain, and there may be inadequate regulations and safeguards available to the Recipient. KBank reserves the right to amend, either in whole or in part, the information so provided herein at any time as it deems fit, and the Recipient acknowledges and agrees with such amendments, accordingly. For any inquiry, or in the case of making a complaint, the Recipient may seek further information from KBank at [email protected], +(662) 470 6900 to 01, +(662) 470 2660 to 61, or +(662) 470 2673 to 74. * The information herewith represents data in the Bank's consolidated financial statements, some of the numbers and ratios are calculated before netting with KBank's non-controlling interest. บริการทุกระดับประทับใจ 168#85K KASIKORNTHAI บริการทุกระดับประทับใจ