TMB Synergy and Financial Projections slide image

TMB Synergy and Financial Projections

Latest projection of 5-year synergy Total 5-year synergy value² Balance sheet synergy1 Revenue synergy Cost synergy1 2020 2021 2022 TMB Make THE Difference Key synergy drivers . Balance sheet synergy³ Replace high-cost TBANK's TD/NCD with lower deposit cost products Reduce low return loan of TMB portfolio ~ 1-3 bn • ~3-5 bn Revenue synergy TMB customers TBANK customers . Cross-sell mutual fund Cross-sell BA • Cross-sell CYC . Cross-sell Flashplus ~10-12 bn Cost synergy4 • Relocate and optimize branch footprint • Combine workforce • Optimize IT spending • Optimize marketing expenses 2023 2024 1/ Cost and funding synergy is "cost avoidance” from not merged scenario 2/ Exclude dis-synergy from customer churn / loss of AUM during customer transfer and credit risk model calibration 3/ Balance sheet synergy is based on execution in 2020, while the results last for the following years 4/ Cost synergy is before tax benefits reduction and will be based on execution roadmap each year 23
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