#1K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNBANK Investor Presentation as of 2Q23 (Updated Economic Data) October 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 S 86/100 carbon neutral CDP CLOSET ACTION A LIST 2022 CLIMATE ESG100 Environmental Social-Governance MSCI 2022 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Established on June 8, 1945 with registered capital of Bt5mn (USD0.14mn) ■Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of June 2023) Assets Loans 1) Deposits CAR ROE (1H23) ROA (1H23) Number of Branches Number of E-Machine (ATM/RCM) Number of K PLUS Users Number of Employees Share Information SET Symbol Share Capital: Authorized Issued and Paid-up Number of Shares Market Capitalization 2Q23 Avg. Share Price: KBANK KBANK-F EPS (1H23) BVPS (1H23) Notes: 1) Loans Loans to customers Bt4,268bn (USD119.9bn) Ranked #2 with 16.41% market share²) Bt2,449bn (USD68.8bn) Ranked #2 with 15.97% market share Bt2,710bn (USD76.1bn) Ranked #2 with 17.12% market share²) 19.01% 3) 8.65% 4) 1.02% 816 10,967 21.1mn Bank only 18,722/ Consolidated 31,430 KBANK, KBANK-F Bt30.2bn (USD0.85bn) Bt23.7bn (USD0.67bn) 2.4bn shares Bt306.8bn (USD8.62bn) Ranked #2 in Thai banking sector Bt131.18 (USD3.69) Bt131.47 (USD3.69) Bt9.02 (USD0.25) Bt211.37 (USD5.94) 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 June 2023 3) Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from 1 January 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisted of KBank, K Companies and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd. and other subsidiaries within the permitted scope from the BOT's to be financial conglomerate. 4) ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments 5) Consolidated Number of employees includes employees of KBank, the wholly-owned subsidiaries of KBank and support service providers of KBank. Exchange rate at the end of June 2023 (Mid Rate) was Bt35.59 per USD (Source: Bank of Thailand) บริการทุกระดับประทับใจ 2#2K KASIKORNTHAI Table of Contents ■ Operating Environment ■2023 Financial Targets ■The K-Strategy Financial Performance ■Capital and Dividend ■Summary ■ Appendix K KASIKORNTHAI Appendix Topic บริการทุกระดับประทับใจ Topic ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page 5-6 7-8 9-10 11-18 19-20 21 22 - 171 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Slide Page KBank Strategy Business Highlights Risk and Credit Management Financial Performance 1H23 Highlights 23-50 51-58 59-68 69-86 69-72 • Interest Income - net 73 • Non-interest Income and Structure 74 • Net Fee Income and Structure 75-76 Other Operating Expenses 77 Loan 78-79 • Asset Quality 80-82 Investment in Securities and Funding Structure 83-86 The Wholly-owned Subsidiaries 87-98 Muang Thai Life Assurance (MTL) 99-107 ➤ Other Information 108-122 ■Banking System and Regulations Update ■Government Policy ■Thai Economic Figures ■IR Contact Information and Disclaimer 123-132 133-146 147-169 170-171 บริการทุกระดับประทับใจ 3 4#3K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Operating Environment: Economic Outlook for 2023 (as of 27 September 2023) YOY Key GDP Forecasts and Assumptions 1.5 2.6 3.0 -6.1 2020 2021 2022 2023F % YoY 2020 2021 2022 2023F* Jul 23) 2023F* (Sep 23) Key Points: ■Thai GDP is expected to grow 3% from the previous projection of 3.7% Waning global economic momentum, particularly from Chinese economic slowdown, will put downward pressure on Thai export and tourism sector ■ Average headline inflation for 2023 may subside to below 2.0%, given very low rate in the past few months ■Thai GDP will return to pre-COVID-19 level in 2023 GDP -6.1 1.5 2.6 3.7 3.0 Private Consumption -0.8 0.6 6.3 3.8 5.0 Government Consumption 1.4 3.7 0.0 -3.0 -3.2 Total Investment -4.8 3.1 2.3 1.8 1.6 - Private investment -8.1 3.0 5.1 2.0 2.0 - Public investment 5.1 3.4 -4.9 2.2 1.3 Gov't Budget Deficit (% of GDP) -5.2 -4.8 -3.5 -3.8 -3.9 Exports (Customs Basis) -5.9 17.4 5.5 -1.2 -2.5 Imports (Customs Basis) -12.7 29.5 13.6 -2.4 -2.4 Current Account (USD bn) 21.2 -10.6 -16.9 9.5 6.5 Headline Inflation -0.8 1.2 6.1 1.8 1.4 Avg Dubai Oil Price 42.2 68.8 97.0 78.0 84.0 No. of Foreign Tourists (Mn) 6.7 0.4 11.2 28.5 27.6 Policy Interest Rate** 0.50 0.50 1.25 2.25 2.50 Risk Factors: ■Global economic slowdown Impact from El Niño ■Fed rate hike cycle and Thai Baht volatility ■ Ongoing geopolitical risks ■Household and business balance sheet deterioration Notes: MPC's policy rate is at 2.50% (as of September 27, 2023) Source: *KResearch (as of September 26, 2023 vs forecast on July 11, 2023) ** KBank Capital Markets Research (as of September 27, 2023) บริการทุกระดับประทับใจ 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 Outlook ■Global economy: Global economy expected to decelerate in 2023 amid persistent inflation, continuous rate hikes by major central banks, and sluggish recovery of China while uncertainty remains with geopolitical issues and banking sector turmoil ■US: US economy likely to slow in 2023 due to Fed's aggressive interest rate hikes and tighter credit condition, but may not enter a recession in 2023 ■ Eurozone: Eurozone economy likely to slow in 2023 amid elevated inflation and tightening policy, but may not enter a recession in 2023 ■China: Chinese economy expected to expand at a higher rate due to relaxation of COVID restrictions, but risks remain given ongoing property market slump, weakening consumer confidence, and global economic slowdown while the prospect of any large economic stimulus seems less likely ■ ASEAN economies: ASEAN economies will likely experience slower growth amid global economic slowdown, persistent inflation, and tighter financial conditions ■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 ■Average headline inflation for 2023 may drop to 1.4%, given low rate in 2Q23. However, inflation may accelerate again due to uncertainty surrounding cost pass-through and commodity price trend, given threats from severe weather and ongoing geopolitical tensions ■Thai exports may experience negative growth in 2023, given global economic slowdown, lower commodity prices, and a high base in 2022 ■Tourist arrivals in 2023 expected to accelerate to 27.6 million ■Fed hiked 25bps in July to 5.25-5.50% after a pause in June with a neutral tone depending on data. The market sees little chance of a Fed rate hike this year ■Fed's interest rate at the end of 2023 expected to be 5.25-5.50% as Fed's hawkish tone fades while the market anticipates how long Fed can hold the rate ■■Baht weakened to Bt35.00 per USD with USD resurgence and Thai internal factors ■ However, at 2023 year-end, Baht could reach Bt33.50-34.00 per USD, as the Thai economy continues to recover, thanks to strong support from tourism recovery Possible Impacts to Thai Economy ■ Thai economy, especially export sector, increasingly tilted to the downside amid increasing global economic risks ■Fading government stimuli will weigh on Thai economic recovery in 2023 ■Domestic consumer spending 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 Thai economy, while export slump will put downward pressure on Thai economy ■ BOT rate would be near neutral with a data-dependent method, while inflation continues to drop below BOT's target range for 3 consecutive months ■■BOT's interest rate expected to remain at 2.50% the end of 2023 ■Rise of USD put pressure on the Thai Baht and Asian currencies amid fragile China economic recovery ■Looking forward, the recent Thai current account has surprisingly turned into a surplus with the continuous recovery of Thai tourism and economy Source: KResearch (as of September 27, 2023), and KBank Capital Markets Research (as of September 27, 2023) บริการทุกระดับประทับใจ 5 6#4K KASIKORNTHAI 1H23 Financial Performance Consolidated NIM 1H23 Actual Y2023 Targets 43.37% 42.94% Flat Low to Mid-40s 2Q23 Actual 3.63% 3.54% 3.3-3.45% Loan Growth -0.64% QoQ -1.84% YTD -1.84% YTD -1.61% YoY 5-7% Net Fee Income Growth¹) -5.31% YoY -4.93% QoQ -6.77% YoY Cost to Income Ratio²) Credit Cost per 208 bps 206 bps year (bps) 175-200 bps NPL Ratio 3.20% 3.20% < 3.25% (Gross) ³) ROE4) ROA Note: 1) Net Fee Income 8.82% 1.03% 8.65% 1.02% N/A N/A ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Notes (1H23) NIM increased YoY mainly due to higher interest rates, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash. YTD loans decreased from SME, Credit Cards, Personal loan, and from NPL outflow management, while Regional and KLeasing increased. Net fee income decreased YoY from Brokerage and Fund Management businesses in line with market conditions, and a drop in transaction service fees. Cost to income decreased YoY from net total income increased, despite higher operating 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. Since 1Q23, the level of management overlay temporarily dropped from a one-time deterioration in a large corporate loan, but stayed within our range of comfort of 15-20%. Management overlay will be built up going forward, depending on the economic situation. 2023 credit cost will remain high, and may slightly exceed the target range, but rising to no more than 210 bps, due to ongoing, proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan. Fees and Service Income - Fees and Service Expense; 2) Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); 3) NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions; 4) ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 7 K KASIKORNTHAI Y2023 Financial Targets NIM Consolidated Loan Growth Y2022 Actual 2023 NDR Targets 3.33% 3.3-3.45% 3.03% 5-7% Net Fee Income Growth* -6.89% Flat Cost to Income Ratio** 43.15% Low to Mid-40s Credit Cost per year (bps) 211 bps 175 - 200 bps NPL Ratio (Gross)*** ROE**** 3.19% < 3.25% ROA ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Notes (Y2023) NIM rising due to higher interest rates and small ticket size lending strategy, despite higher FIDF contribution. NIM may go slightly higher than 1H23 level, in line with interest rate trend. Loans increase from regional expansion strategy and more corporate lending; continued focus on quality using effective data analytics capability. Loan growth may be below target range amid uneven economic recovery. Net fee income may decrease from lower conventional transaction fees due to changing consumer behavior; wealth management business continues to expand. Net fee growth may be better than 1H23, but may not reach target. Moderate revenue growth; projecting higher potential investment expenses for future growth; continuing cost management and productivity improvements. Credit cost peaked in Y2022. Continue proactive asset quality clean up and prudent financial policy, credit cost may slightly exceed the target range, but rising to no more than 210 bps. The credit cost will cover future uncertainties, in line with global economic circumstances and business strategy. 7.38% 0.86% N/A N/A Note: * Net Fee Income Fees and Service Income - Fees and Service Expense; ** Cost to Income Ratio = Total Other Operating Expenses to Total Operating Income - net (Total Operating income less Underwriting Expenses); * *** NPL Ratio (Gross) = NPL (gross) to total loans; NPL (gross) used in the calculation are loans to general customers and loans to financial institutions that are non-performing loans; total loans used in the calculation are loans to general customers and loans to financial institutions **** ROE = Net profit deducted Additional Tier 1 dividend after tax/Average total equity excluded Additional Tier 1 บริการทุกระดับประทับใจ 8#5K KASIKORNTHAI KASIKORNBANK Vision, Purpose and Culture Vision Purpose Customer Promise BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" To Empower Every Customer's Life and Business Total Solution Attentive & Inclusive Any Time & Any Where Trustworthy K-Culture Leadership A PIONEER FOR THE BETTER, A STEP AHEAD FOREVER Customer at Heart | Collaboration | Agility | Innovativeness | Integrity PURPOSEFUL AND PRACTICAL LEADERSHIP บริการทุกระดับประทับใจ K KASIKORNTHAI The K-Strategy ■ K-Strategy is reimagined to drive growth and empower customer Vision Sustainable Development Purpose BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" ESG Beyond Banking & Innovation Strong Brand To Empower Every Customer's Life and Business Growth Strategy PAY: Dominate Digital Payment Reimagine Commercial & Consumer Lending Data Key Capabilities (888) Democratize Penetrate Investment & Insurance Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT 9 10#6K KASIKORNTHAI Classified Loans ◉ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL coverage dropped to reflect the inflow from uneven economic recovery and large corporate customer; but remained at comfortable level ◉ % Comprehensive debt restructure slightly increased from ongoing proactive asset quality management Total loan and AIR Total loan allowance (ECL) Bt2,481bn Bt2,465bn Bt128.1bn (5.2% of loan and AIR) Bt128.2bn (5.2% of loan and AIR) % Comprehensive 7.0% 7.2% %NPL coverage 157% 147% debt restructuring Stage3 Stage3 Bt89bn Bt94bn 3.6% 3.8% Stage2 Bt181bn 7.3% Stage1 Bt2,211bn 89.1% Mar 2023 Stage3 Bt38.6bn %ECL 43.5% Stage3 Bt41bn %ECL 43.7% Stage2 Bt179bn 7.3% Stage1 Bt2,192bn 88.9% Stage2 Bt43.3bn %ECL 23.9% Stage2 Bt40.6bn %ECL 22.7% Stage1 Bt46.2bn %ECL 2.1% Stage1 Bt46.6bn %ECL 2.1% Jun 2023 Mar 2023 Jun 2023 บริการทุกระดับประทับใจ K KASIKORNTHAI Balance Sheet Cleanup Updates Due to our ongoing clean-up balance sheet ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Total loans in stage 2 and stage 3 were stable, even including impact from large corporate customer deterioration Comprehensive Debt Restructuring reduced to around 7.2% as of June 2023 which focus on keeping high viability customers into the program Loans in Relief Loans in Comprehensive program(1) 13% of Total Loans Y2021 System-wide supportive measures Debt Restructuring (CDR) Loan and AIR Bt300bn (Stage 2 & 3) Bt282bn (12.7%) Bt275bn (12.0%) (11.1%) Bt270bn (11.2%) Bt273bn (10.9%) Bt110bn 4.4% Bt88bn 4.4% Bt93bn 3.6% Bt89bn 3.7% Bt94bn 3.6% ■Stage3 Stage2 Bt190bn 8.3% Bt187bn 7.6% Bt188bn 7.5% Bt181bn 7.5% Bt179bn 7.3% Jun 2022 6.9% of 7.0% of Total Loans Total Loans Total Loans Total Loan Allowance 7.2% of Jun 2022 Sep 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Dec 2022 Mar 2023 Jun 2023 Bt141bn Bt121bn Bt134bn Bt128bn Bt128bn % ECL to 6.0% 5.6% 4.9% 5.3% 5.2% Y2022 Mar 2023 Jun 2023 Loan and AIR Credit Cost NPL ratio % NPL Coverage Write-off 159 bps 3.80% 161 bps 3.07% 173 bps(3) 3.19% 205 bps 3.04% 208 bps(4) 3.20% 144.6% 148.7% 154.3% 156.7% 147.3% Targeted measures (Long-term and more sustainability) NPL Sales (2) Bt14.3bn Bt30bn Bt29.7bn Bt25bn Bt7.9bn(3) Bt17bn(3) Bt1bn Bt35.6bn Bt4.3bn(4) Bt15bn(4) Note: 1) Loans in relief programs = Loans in KBank's relief programs including debt resolution measures during the early stage of COVID-19; covering broad-based payment holiday and opt-in program 2) NPL sales legal claim amount, not book value of transferring amount 3) Y2022 Credit cost = 211 bps; Write-off = Bt59bn; NPL sales = Bt72bn 4) 1H23 Credit cost = 206 bps; Write-off Bt5.3bn; NPL sales = Bt50.6bn บริการทุกระดับประทับใจ 11 12#7K KASIKORNTHAI Composition of Growth: Loans by Business Moderate loan growth momentum in line with full-year target Loan Portfolio Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio (Bt bn) Consolidated Amount (Bt bn) 1H23 1H23 Y2023 2,800 2,245 2,421 2,495 2,449 Dec 22 Jun 23 Loan Growth Yield Range Loan Growth Target 2,400 2,002 (%) (%) 2,000 34% 36% 35% Corporate Corporate Loans 880 866 (1.6%) 2-4% 36% 1,600 35% ■SME SME Loans 780 751 (3.7%) 5-7% 1,200 33% 31% Retail Loans 703 684 31% (2.6%) 5-7% 33% Retail 34% Other Loans 132 148 12.1% 800 Others 400 28% 28% 29% 28% 28% Total Loans 1) 2,495 2,449 (1.8%) 5.7% (%) 4-6% 1-2% 2-4% 5-7% 0 4% 3% 4% 5% 6% 2019 2020 2021 2022 1H23 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 1H23 WBG loans were Bt95bn, increased 16.4% YTD, and 67.6% YoY 1H23 2023 Outlook Corporate Loans ▪ Loan portfolio slightly dropped mainly from long-term loans SME Loans Retail Loans Loan Definition ■ SME loans outstanding decreased due to balance sheet clean up as well as to control and mitigate credit risk from viable customers; more focus on secured credit customers in 2023 ■ However, KBank still provided various product offerings matched to customers' needs with risk-based offerings ■ Unsecured loans outstanding decreased due to seasonal repayment of Credit Card which hiked at year end. However, spending showed improvement in tourism, transportation and restaurant categories ■ Personal loans grew prudently to control and mitigate credit risk ■ Home loans decreased as per market competition. However, new volume showed improving trend in 1H23 ■ Continued use of data analytics to continuously improve predictive power of credit model and credit process in order to acquire new customer segments with acceptable risk for both SME and Retail Loans Corporate Loans: Loans of KBank and KBank's Subsidiaries in Corporate Segments (annual sales turnover > Bt400mn) SME Loans: Loans of KBank and KBank's Subsidiaries in SME Segments (annual sales turnover ≤ Bt400mn) Retail Loans: Loans of KBank and KBank's Subsidiaries in Retail Segments ■ Focus on supporting ESG loans in prospective industries ■ Potential loan growth in some sectors to support business opportunities ■ Grow prudently in line with market situation focusing on secured credit ■ Utilize data analytics to expand credit opportunities in specific industries Support business growth of healthy SME customers and accelerate supports to at-risk SMEs to maximize recovery ■ Provide various product offerings matched to customer needs ■ Grow prudently in line with market situation while maintaining a leading position in the consumer market and being '1st in mind' for our customers and prospects ■ Focus on intelligent lending utilizing data analytics to offer products and promotions aligned with customers' needs ■ Focus on acquiring New-to-KBank credit customers with acceptable risk and proactively monitor to manage loan portfolio quality ■ Focus on generating additional revenue from existing credit customers บริการทุกระดับประทับใจ Other Loans: Composed of loans through the World Business Group, insurance business (MTL), and other loan types not directly attributable to the main business groups. Before Y2020, other loans were loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) reclassified to their customer segments. K KASIKORNTHAI Net Interest Margin June 2023 (Consolidated) NIM ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Yield on Earnings Assets and Cost of Fund (%) (%) 5 8 4 3.54 3.31 3.27 3.21 3.33 6 5.21 5.69 Yield on Loans 4.82 4.97 4.71 3 4.19 3.83 4 3.64 3.79 4.33 Yield on Earnings Assets 2 I 2 1.23 1.07 1 0.78 0.59 0.62 Cost of Fund 0 0 1.14 0.90 Cost of Deposits* 0.71 0.54 0.53 2019 2020** 2021 2022 1H23 2019 2020 2021 2022 1H23 ■NIM stood at 3.54% in 1H23, increased YoY, mainly due to higher interest rate, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash. 2019 2020 2021 2022 1H22 1H23 1Q23 2Q23 NIM (%) 3.31 3.27 3.21 3.33 3.21 3.54 3.46 3.63 Yield on Earnings Assets (%) 4.19 3.83 3.64 3.79 3.64 4.33 4.21 4.47 Yield on Loans (%) 5.21 4.82 4.71 4.97 4.76 5.69 5.49 5.91 Cost of Fund (%) 1.23 0.78 0.59 0.62 0.58 1.07 1.01 1.14 Cost of Deposits (%), incl DPA 1.14 0.71 0.54 0.53 0.51 0.90 0.87 0.94 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 13 14#8K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Composition of Growth: Net Fees and Non-interest Income June 2023 (Consolidated) Total Operating Income - net 160.49 154.89 (+3%) (-3%) (+5%) Non-interest Income Ratio and Net Fee Income Ratio (Bt bn) 50% 163.35 173.26 I 200 (+6%) 40% 36% 94.64 30% 150 23% 27% 36% 30% 27% 30% 23% 21% 22% 23% 124% (+15% YoY) 19% 17% 100 20% 24% 50 64% 70% 73% 77% I 10% 76% 0% 0 2019 2020* 2019 1H23 (Bt bn) 70 57.80 60 (+2%) 3% 45.87 2020* 2021 2022 ■Net interest income Non-interest income Non-interest Income ■Other operating income 2021 2022 1H23 Non-interest income ratio Net Fee income ratio Net Fee Income ■Fee and Service Income-net 43.96 50 (-21%) (-4%) 40.26 | (Bt bn) 36.74 Net earned premium - net 4% 3% (-8%) 40 (-4%) 5% 123.07 33.00 35.32 (-10%) (+7%) 40 32.88 1 (-7%) 64% Dividend Income 30 I 15.83 30 (+26% YoY) 82% 5% Share of profit from investments on equity method 20 (-7% YoY) 20 69% Gain on investments 10 10 5% 3% 9% 8% 9% 0 -0.3% 2019 18% 13% 20201% .3% 31% 0 13% 4% 2% 0.3% 2% 2021-4% 2022-8% 1H23-1% -11% Gain on financial instrument measured at FVTPL 2019 2020* 2021 2022 1H23 (Gain on Trading and FX transactions-Old) - Net Fee Income Ratio = Net Fee Income / Total Operating Income - net 5% 0.1% 15% 14% 72% 80% 1H23 non-interest income accounted for 24% of total net operating income and net fee income accounted for 17%. Non-interest income increased 26% YoY, mainly due to higher mark-to-market financial instruments measured at fair value through profit or loss according to market conditions, while net premium earned - net decreased YoY from higher underwriting expenses, although net premiums earned still had growth. 1H23 net fee income decreased -7% YoY mainly from brokerage and fund management businesses in line with market conditions, and a drop in transaction service fees. 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 new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). บริการทุกระดับประทับใจ 15 K KASIKORNTHAI Cost to Income Ratio June 2023 (Consolidated) Cost to Income Ratio (%) (%) 50 45.32 45.19 43.49 43.15 42.94 6 40 30 20 10 0 2019 2020* 2021 2022 1H23 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Cost to Average Assets Ratio 4 2.26 2.01 1.83 1.79 1.91 2 0 2019 2020* 2021 2022 1H23 1H23 cost to income ratio was 42.94%, 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 and an increase in customer service expenses according to business volume). Focus on cost management and productivity improvement, with new investments for future growth. Cost to Income Ratio (%) Cost to Average Assets Ratio (%) 2019 2020 45.32 45.19 2021 43.49 2022 1H22 43.15 43.18 1H23 42.94 1Q23 42.50 2Q23 43.37 2.26 2.01 1.83 1.79 1.71 1.91 1.87 1.96 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) June 2023 (Consolidated) Expected credit loss (Provision) (Bt bn)) 54 During 1997 Asian Crisis* 50.6 160.6 148.5 159.1 149.2 141 127.1 134.5 130.0 154.3 111.0 148.6 131.8 130.9 147.3 Coverage Ratio During 1997 Asian Crisis* (%) 51.9 150 49 43.5 44 44.1 41.8 40.3 39 34 33.8 32.5 34.0 100 29 26.4 25.5 24 48.8 19 16.8 14.2 50 34.7 14 9 6.7 7.3 8.4 11.7 25.430.034.2 2.3 0.7 -1 0 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 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 (%) 40 31.70 723 23.50 NPL Ratio and Credit Cost ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK I Asset quality is to be closely monitored and constantly reviewed. NPL ratio in 1H23 was at 3.20%, with coverage ratio of 147.31%. INPL ratio dropped YoY from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. ■1H23 credit cost remained high due to prudent consideration of uncertain economic outlook and vulnerable customers. (bps) 900 INPL ratio Credit cost 700 30 30 500 287 20 168 204 44 15.90 96 66 64 10 5.10 NPL was peak at14 42.3% in 1Q99 175 174 205 173 85 66 2.91 2.45 2.16 2.11 2.24 2.70 3.32 3.30 3.34 3.65 3.93 3.76 3.193.20 239 211 206 300 0 1996 1997 1998 1999 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 2021 2022 1H23 Notes: Data in 1996-1997 is KBank only NPL Ratio by Business 2017 2018 2019 2020 2021 2022 1H23 Corporate Business <2% <2% <2% <2% <2% <2% <2% -5% -5% -6% <7% <7% <7% <7% -4% 4% 4% <5% <5% <5% <5% Retail Business*** ** 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 TOQ -100 SME Business บริการทุกระดับประทับใจ 17 K KASIKORNTHAI ROA and ROE June 2023 (Consolidated) ROA (%) ROE (%) ROA (%) ROE** ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (%) 2.5 24 20 2.0 16 1.5 1.20 0.98 1.02 12 9.90 0.85 0.86 8.44 8.65 1.0 7.10 7.38 8 0.5 4 0.0 0 2019 2020* 2021 2022 1H23 2019 2020* 2021 2022 1H23 2019 2020 2021 2022 1H22 1H23 1Q23 2Q23 1.20 0.85 0.98 0.86 1.06 1.02 1.01 1.03 9.90 7.10 8.44 7.38 9.27 8.65 8.43 8.82 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 18#10K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Capital (Reported Number: Excluding Net Profit of Each Period) June 2023 (Consolidated) Bank only KASIKORNBANK FINANCIAL CONGLOMERATE* Basel III Basel III (%) (%) 18.52 17.74 18.0 3.58 2.80 17.83 2.41 18.02 18.18 21.0 19.62 18.80 15.0 068-14.941.10 15.42 103-15.961.04-16.12 2.07 2.06 18.0 3.43 2.67 18.77 2.28 1.97 085-16.13-762-16.49-07-16 8408-17.04 18.81 1.97 19.01 15.0 12.0 12.0 9.0 14.94 14.26 14.32 14.93) 9.0 15.08 16.19 15.48 15.46 15.86 16.06 6.0 6.0 3.0 3.0 0.0 0.0 2019 2020 CET1 AT1 2021 Tier1 2022 1H23 2019 Tier2 2020 ** 2021 CET1 2022 1H23 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 1H22 1H23 1Q23 2Q23 Bank only CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period KASIKORNBANK FINANCIAL CONGLOMERATE* CAR (%), excluding net profit of each period Tier 1 (%), excluding net profit of each period 18.52 17.74 17.83 18.02 17.34 18.18 18.13 18.18 14.94 14.94 15.42 15.96 15.26 16.12 16.06 16.12 19.62 16.19 18.80 18.77 18.81 16.13 16.49 16.84 18.37 16.39 19.01 17.04 18.90 19.01 16.92 17.04 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 3.00 40 32.14 3.0 2.50 2.50 2.50 27.00 30 2.0 20 1.0 0.50 10 0.0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 ■Interim Dividend 32.80 34.43* 27.83 29.40 26.96 28.75 23.73 23.91 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 19 Dividend policy: both operating results and long-term returns to shareholders are taken into consideration in determining dividend payments, in order to ensure a sustainable and adequate capital level through the changing economic environment, the ongoing adoption of Basel III and new requirements. 2010 2011 Dividend Per Share (Bt) 2.50 2.50 Dividend Payout Ratio (% 32.14 27.00 2012 2013 3.00 3.50 22.12 2014 4.00 4.00 2015 2016 2017 4.00 4.00 4.00 2018 2019 2020 5.00 2021 2022 1H23 2.50 3.25 4.00 0.50 22.32 22.51 27.83 26.96 32.80 29.40 34.43 23.73 23.91 28.75 n.a. Note: * The Board of Directors' Meeting No. 1/2020 held on 30 January 2020 has approved the share repurchase project for financial management purposes of KASIKORNBANK, not exceeding totaling 23,932,600 shares, equal to 1% of the total paid-up capital of the Bank and the maximum not exceeding Bt4,600mn, which was conducted through the Stock Exchange of Thailand during 14-27 February 2020, and the Bank had the resale period during 31 August - 16 September 2020. By the end, the Bank was unable to resell as planned. To comply with laws and regulations, the Board of Directors' Meeting No. 11/2020, held on 18 September 2020, resolved to approve the decrease in paid-up capital of the Bank by writing off the unsold amount of the repurchasing shares in full. The Bank of Thailand has also approved the decrease in paid-up capital accordingly. - In 2020-2021, the BOT suspended the banks' interim dividend payment of Y2020 and allowed to pay dividend for Y2020 and Y2021 not exceed 50% of net profit for the previous year. - On June 2022, the BOT announced to remove the dividend payout ratio limit. - Dividend payout will be calculated based on dividend divided by net profit attributable to shareholders net of dividend on other equity instrument including additional Tier 1 instrument. บริการทุกระดับประทับใจ 20 20#11K KASIKORNTHAI Summary ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■The K-Strategy: Customer Centricity remains our core philosophy with purpose to "Empower Every Customer's Life and Business" Balanced Growth: loans to grow carefully 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 (+4.3%) 22.2 21.3 19.5 17.7 16.0 16.5 15 22505. 31,750 35,000 30,000 25,279 20,710 25,000 15 14,516 20,000 12,840 8,477 10 20.0 15,000 5,188 10.0 17.1 14.4 10,000 12.1 18.5 21.1 5,000 0 0 2018 2019 2018 2019 2020 2021 2022 1H23 2020 Total Users 2021 2022 1H22 --Number of Transactions (RHS) 1H23 * Customers in Retail Business account for 92%, SME Business 8%, and Corporate Business less than 1% of customer portfolio 100 ** Active users defined as minimum of 1 Login per month; 73% active users as of 1H23 Net Promoter Score (NPS)*** (#1 among Banks in Thailand) 50 35 0 2020 63 2021 83 2022 *** NPS Study 2022 surveyed by The Nielsen Company during September to November 2022, measuring the willingness of customers to recommend a company's products or services to others บริการทุกระดับประทับใจ 23 24 24#13K KASIKORNTHAI The K-Strategy ■ K-Strategy is reimagined to drive growth and empower customer Vision Sustainable Development Purpose BANK OF SUSTAINABILITY ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK "KASIKORNBANK aims to be the most innovative, proactive, and customer centric financial institution, delivering world class financial services and sustainable value for all stakeholders by harmoniously combining technology and talent" ESG Beyond Banking & Innovation Strong Brand To Empower Every Customer's Life and Business Growth Strategy PAY: Dominate Digital Payment Reimagine Commercial & Consumer Lending Data Key Capabilities K 888 Democratize Penetrate Investment & Insurance Regional Market Strengthen Harmonized Sales and Service Experience HR Proactive Risk & Compliance Value-Based Productivity บริการทุกระดับประทับใจ IT ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI KBank: Company Structure by Investment Purpose Credit Wealth Payment Digital Asset & Beyond Banking Regional Business Key Subsidiaries* KLeasing KAsset KFactory & Equipment KSecurities MTL KASIKORN INVESTURE (KIV) JV/Investment (Partner Network & IT Capability) KLINE (JV) & KLINE Insurance Broker (Loan and Insurance Business) KBAO (JV) TD TAWANDANG (Investment) (Financial Services) JK AMC (JV) JAM (Investment) (Asset Management Business) NGERN HAI JAI (Investment) CAR HERO** (Auto Loan) T2P✶✶ & THINKERFINT (Investment) (Financial Transaction Solutions) KGP** (Online Payment Solutions) KAPTURE ONE (JV) BUZZEBEES (Investment) (CRM Solution Platform) Grab Holdings (Investment) (On Demand Service) Note: * Key subsidiaries as of 1H23 **In the restructuring process บริการทุกระดับประทับใจ 25 25 KX (Venture Builder and Venture Capital Fund) KUBIX (ICO Portal) KASIKORNTHAI BANK SOLE Limited (Lao PDR) KASIKORNBANK (CHINA) KVF (KASIKORN VISION FINANCIAL) Bank Maspion (67.68%) KVISION KTech (China) KBTG Vietnam 26#14• • . K KASIKORNTHAI Progress of Growth Strategy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK PAY Dominate Digital Payment Reimagine Commercial & Consumer Lending Increase customer's engagement and obtain fund flow Make payment accessible anytime, anywhere Increase digital market share and K PLUS users to 23.9mn in 2023 88 Democratize Investment & Insurance Objective & Aspiration Expand consumer credit and SME support with better asset quality, offering inclusive lending services at reasonable pricing for all . Increase fee and non-interest income Grow wealth AUM by 20% (mutual fund AUM at 38%) within three years Grow wealth customer base by 1 million customers within three years . Penetrate Regional Market Focus China, Indonesia and Vietnam 2023 4% of Net Total Income (NTI) 1.3mn K PLUS users in Vietnam 2027 Indonesia: Top 20 banks by loan size & the largest bank in East Java Vietnam: Top 20 banks by asset size K PLUS 21.1mn with 73% active rate K PLUS Users 25.3bn Total Transactions 4.5bn, valued Bt12.4trn Financial Transactions -1.84% YTD (-1.61% YoY) Loan Growth decreased from SME, Credit Cards, Personal Loan and NPL outflow management 1H23 Performance 17.5bn Loan Outstanding from LINE BK (JV-lending with LINE)* Mutual Fund Bt42bn (4.3% YTD) AUM Growth 52K (7.2% YTD) New MF Customers > 90% from K PLUS Bancassurance #2 Total Premium 15.4% market share #2 New Business Premium 15.8% market share 2.5% of Net Total Income in 2022 #1 676k The biggest Thai K PLUS Users bank in Shenzhen in Vietnam Launched KBTG Vietnam Launched QRIS in Indonesia Strengthen Harmonized Sales and Service Experience Objective & Aspiration Strengthen digital-led sales and service through KBank and partner platforms Optimize physical service and human touch Enhance basic infrastructure to harmonized physical and digital customer experience Note: Not consolidated in KBank Consolidated Financial Statement QRIS Quick Response Code Indonesia Standard NPS Net Promoter Score #1 1H23 Performance #1 816 10,967 Mobile Banking NPS 2022 among Branches E-Machines (K PLUS Users) Thai banks บริการทุกระดับประทับใจ > 220,000 Banking agents including touchpoints 27 K KASIKORNTHAI Growth Strategy: Dominate Digital Payment ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK To increase digital market share and active K PLUS users PAY: To make payment accessible anytime, anywhere for everyone with secure, convenient, and good customer experience Strategy Key Achievements in 1H23 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 ⚫ K PLUS user continuously grew 14% YoY to 21.1 million users • Multi Source of Fund on K PLUS - Partner Point • Continuously increase engagement and stickiness in customer everyday spending activities Merchant Solution for High Growth Segment Capturing more MOLS by leveraging partner online solution • Uplifting merchant capability: K SHOP Chat and Bill Trustworthy Business Payment Solution • Capturing small enterprises with online K Payroll package thru K BIZ • Capturing new business volume with payout solution from online entertainment platform thru K CORP API **API Aapaton Programing interface ได้ทุกธนา 111 KO โอนจ่ายง่าย ได้หลายบัญชี mild funanidos I BIZ Note: MOLS = Merchant Online บริการทุกระดับประทับใจ อป าง นก ง่ายๆ ไม่ต้องใช้ Use K Point K-market 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 1H23 New-to-KBank Credit Customers . • 195K newly acquired credit customers Bt52bn new booking amount (51% of total new booking) from New-to-KBank credit customers Self-apply channel on K PLUS for unsecured credit • 972K applications/month including both commercial and consumer products Bt50bn new booking amount from existing customers Bt8bn new booking for "Green" Bt1bn new booking with partners บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Democratize Investment & Insurance (848) To create long-term sustainable wealth empowerment to our customers throughout their wealth cycle Aspiration to grow wealth AUM and to acquire new investment and insurance customers Strategy Key Achievements in 1H23 29 29 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 。 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 Significant Mutual Fund AUM Growth by Bt42bn or 4.3% YTD growth, which is higher than industry 1.7%. Main driver is sales volume of Term Fund due to attractive government bond yield ° Multi-Asset/Balanced Fund AUM grew by 69% 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 7.2% YTD and over 90% from K PLUS Launched Varieties of Affordable Insurance matching needs of each customer segment Middle Income Customers • Endowment 15/6 for Tax Saving and Goal-Based saver Affluent customers • OPD lumpsum for customer concern about medical expense SME customers Kark Group health insurance for employee welfare บริการทุกระดับประทับใจ นายวนราย oDpultiiPLUS 30#16K KASIKORNTHAI Growth Strategy: Penetrate Regional Market ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■To achieve rapid regional digital expansion in AEC+3 using 3 strategic plays to build growth momentum and accelerate customer base development and financial returns A B C China Strategy AEC Aggressive Play: Aggressively grow corporate lending Serving Local Large Corporates, Thai Directed Investors, and AEC+3 Investors Local Large Corporates Thai Direct Investment (TDI) AEC+3 Mass Acquisition Play: Acquire more customers Acquiring local SME and individual customers with partner collaborations Business Supply chain financing via Acquiring local SME and individual customers via transactional banking channels and partners Retail Business Retail online lending via a self-owned platform under a self-owned platform under 'Better ME' concept K-Cyber Banking EDC Ecosystem Partners 'Better SME' concept Retail ATM/ Agent K+ Disruptive Play: Grow digital lending with more local partners Capturing credit needs of individual customers with high-yield credit via E2E online credit tech BaaS Digital Lending Ecosystar Key Achievements in 1H23 We have successfully established KBank's presence in every country across the region, providing international-standard financial solutions catering to diverse customer segments KBank China successfully reached 2 million customers and launched the first self-owned personal consumption loan aimed at enhancing quality of life and business. KBank Vietnam - Ho Chi Minh City (HCMC) branch increased capital to Bt9.6bn to accommodate the expansion of services across all customer groups. KPLUS users nearly reached 680,000 customers. KBank increased its shareholding of Bank Maspion Indonesia to 67.68%. Working with an online platform, we offer loan services to small businesses to broaden our customer base. Our QRIS service covered 680 touchpoints and catered to 631 merchants, highlighting its widespread adoption. Note: EDC Electronic Data Capture Machine E2E = Enterprise to Enterprise QRIS Quick Response Code Indonesia Standard BaaS Banking as a Service 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: With a strategic focus on the AEC+3 market, KBank is committed to implementing an integrated regional operating model encompassing physical presence, digital platforms, and regional partnerships. Physical Footprint Note: South Korea China Lao PDR. Myanmar Japan Cambodia Vietnam Indonesia - Two subsidiary banks: KASIKORNTHAI BANK SOLE Limited (Lao PDR) with two branches in Ponesinuan and Lane Xang, KASIKORNBANK (CHINA) with four branches in Shenzhen, Chengdu, Shanghai, Beijing and one sub-branch in Long Gang Four international branches: Cayman Islands, Hong Kong, Phnom Penh and Ho Chi Minh City Six representative offices: Beijing, Kunming, Tokyo, Yangon, Hanoi and Jakarta - One strategic partner: Maspion Bank in Indonesia; KASIKORNBANK Group has become a majority shareholder of Maspion Bank in Indonesia by holding a share of 67.68% (KBank had held 5.15% and KVF had held 62.53% since April 12, 2023) - Global partners with 80 banks in 14 countries: 50 Japanese partner banks; 10 Chinese partner banks; 1 Hong Kong bank; 3 Korean partner banks; 12 ASEAN partner banks (in Vietnam, Indonesia, Lao PDR, Cambodia, Philippines, Brunei, Malaysia and Singapore); 3 European regional banks (in Germany and Italy) and 1 Indian Bank บริการทุกระดับประทับใจ Lao PDR. Cambodia Myanmar Vietnam Indonesia Japan China Digital Platform X-Border Multi-Currency Settlement X-Border THB Direct Settlement X-Border Retail Payment Partnership AEC MetinBank: BIDV⭑ ECEL LBB Bank BANK MASPION mandiri BCA Maybank BDO Hana Bank + * 靜岡銀行 HICH BANK S 中国民生银行 CHUGOKU BANK 百十四旅行 ...and others 型 △ 愛知銀行 32 32#17K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Growth Strategy: Strengthen Harmonized Sales and Service Experience ■Reshape channel mix and sales model according to evolving customer behavior, to deliver better experience and productivity Strategy Strengthen Digital-Led Sales and Service By enhancing KBank Platforms to fit each customer's needs, being where customers are through our connected platforms and offer K PLUS as the center of customer's identity and interaction Optimize Physical Service and Human Touch To provide suitable service level for each customer's segment and each touchpoint rather than One-Size Fit All and serve proactively through digital capabilities Enhance basic infrastructure to Harmonized Physical and Digital Customer Experience By implementing "Service Culture", "Feedback Loop" and "Knowledge Management" throughout the organization, enhancing "Risk and Fraud Management" and integrating "Customer Profile" though all channels Note: RP Relying Party KGP = KASIKORN Global Payment NPS CDM Net Promoter Score Cash Deposit Machines Key Achievements in 1H23 #1 mobile banking in Thailand: 21.1 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, and CRM Solution Platform) BaaS KBank open API (QR payment, bill payment, slip verification, inward remittance, facial recognition, RP proxy, information sharing service via K+, pay with K+, KGP merchant payment platform and Fund Transfer) #1 NPS 2022 among banks in Thailand 816 branches and 10,967 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 eWallet and Payment Grab Blue f HORNECT University and Healthcare Chula Partnership YOUTRIP LINEMAN wong nal LINE Pay rabble 支付宝 ALIPAY WICK Joint Venture HUD wsout LINE for Co-Lending through LINE Platform jmt Corporate Customers E-Commerce & Lifestyle Platform/Co-Lending through Partners' Platform Retail The l Shopee ๐ วัน for Debt Collection and Asset Management Business for Co-Lending through Carabao Conglomerate channels BUZZEDEES for End-to-End Loyalty management system from point exchange to CRM platform. Venture Capital* R Доквее NOWACCOUNT Grab Nitta aspire digio NIUM HORGANICE TEP FORWARD Seedoo cryptomind DECENTRALIZED Rob-wealth CARRO P Alchemy THINKER FINT MLINE MAN wong nai Sendo favstay pawoon Kiot Viet Rate Seller OnePay ALODOKTER zenius PRIMO 0 Jio Health Selly Note: *Beacon Venture Capital, a wholly-owned venture capital fund of KBank, invests in companies and startups with a total fund size of USD255mn, via: Direct investment: investments in early to growth-stage technology startups with FinTech roots including but not limited to consumer internet and enterprise technology, aiming to leverage new technology from startups to support KBank's businesses and ESG aspirations. However, the logos above only show a portion of our investment. Indirect investment: investments through VC Funds to enable KBank to leapfrog into the world arena and stay abreast of innovative technologies and business models in other regions, e.g. partnered as an LP with VC funds managed by Integra Partners (known as Dymon Asia Capital), Vertex Ventures, NYCA, Jerusalem Venture Partners, Pantera Capital, Wavemaker Impact, Quona 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) (+14) 1 (+47*) (-21) (-15) (-8) (-5*) 886 860 10,973 10,981 10,911 10,953 10,967 1 11,000 839 824 816 819 2019 2020 2021 2022 1H23 2023T 2019 2020 2021 2022 1H23 2023T ** Cash Deposit Machine Mobile Banking Users (mn) Number of Transactions** *** K+ 2.7bn 3.8bn 5.4bn 7.5bn 4.5bn 4% (+3.9*) 2% 1% 1% 1% Branch (+2.9) (+1.1) 20% 13% 10% 8% E-Machine (+2.7) 28% Mobile Banking 23.9 20.0 21.1 17.1 78% 86% 89% 91% 14.4 68% 12.1 2019 2020 2021 2022 1H23 2023T * Compared to Year-ended K KASIKORNTHAI Domestic Channels New KBank Branch (Hybrid Branch) KBank 2019 2020 2021 2022 1H23 *** 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 1H23 Key Performance ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK B0.00 1.5% Saving Accounts: 7.4mn Special Rate Accounts: 190K Debit Cards: Credit Line Accounts: 3.2mn 582K Line BK Platform Users: 5.7mn Outstanding Loans: 17.5bn 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#21K 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 1H23 Support Running the Bank " IT Project Delivery Excellence Drive and manage IT project portfolio for on-time and +123 New IT Projects Delivered in 1H23 on-budget delivery IT Brilliant Basics Maintain operational stability with uncompromised security World Class Tech Talent 228 Projects currently in development 400+ KBank Applications Fulfil, retain and uplift top tech talent capability towards a goal to be Forbes's World's Best Employers 1st Rank of Cyber Security among Banks in Thailand From BitSight Rating Regional Expansion Support KBank regional expansion and apply innovation "From" and "To" regional Create the Future of Finance 2 Regional Development Sites (Vietnam, China) 2.7 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 Note: 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 Launched 'Bigfin', an asset investment analysis platform KXVC Closed new investment deals with Transak and Magic KASIKORN BUSINESS - TECHNOLOGY GROUP established with 5 companies, as a wholly-owned subsidiary of KASIKORNBANK; included in the KASIKORNBANK FINANICIAL CONGLOMERATE, as approved by the BOT in October 2015 บริการทุกระดับประทับใจ K KASIKORNTHAI KBTG: Support Running the Bank Vision: ONE of the Best Tech Companies in Southeast Asia Project Delivery IT System Stability K PLUS Digital Users People 2019 83 < 5 hours 12.1 mn 1,332 2022 144 < 5 hours 20 mn 2,013 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2025 250 (+200%) < 5 hours +++ 1. IT Project Delivery Excellence Project Delivery Scale project delivery through transformation to support the expansion of project demand and complexity Scale Apply global best practices, processes and tools for transforming our IT delivery to overcome IT rapid changes 2. IT Brilliant Basics IT System Stability . Maintain over 400 applications with highest system availability o High system availability for customer at 99.95% (only 5-hour/year allow for critical applications) o High customer impact incident less than 10 times a year for critical applications o No high customer impact of security breach K PLUS Digital Users Ensure the best experience for customer by always optimizing front-end and back-end to support fast growing number of users บริการทุกระดับประทับใจ 3,000 (+125%) Note: % Growth against year 2019 3. World Class Tech Talent People . Increase resource capacity to support the project demand • Reduce the employee retention within industry benchmark . Increase capability for focused role to support sustainable growth 41 42#22K KASIKORNTHAI KBTG: Support Running the Bank ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 4. Regional Digital Expansion: Financial and Non-Financial Services Expansion in AEC+3 KTECH (China) A fintech company wholly owned by KASIKORN VISION CO., LTD. (KVision) registered in Shenzhen, People's Republic of China, with registered capital of Bt1,300mn Primarily involved in the design and creation of IT systems, research of new technologies, and search for new business models conducive to digital banking and economic systems ■ Launched 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 K KASIKORNTHAI KBTG: Create the Future of Finance Scale-up Innovation Products & Partnerships Innovation MAKE Khunthong ธนาคารกสิกรไทย KBTGVN Office 开泰银行 KASIKORN BANK Launch New S-Curve Products kubix Health and Insurance Ecosystem เมืองไทย ประกันภัย AND THE NURUN 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 Defi Fully operated KX as 'Venture Builder' and established 'KX Venture Capital (KXVC)' as a global Web3 & Deep Tech Venture Investment coral Launch and scale Coral NFT Marketplace to be a top player bigfin Note: CeFi Centralized Finance; DeFi = Decentralized Finance; NFT = Non-fungible Token บริการทุกระดับประทับใจ Launched 'Bigfin' to become top-of- mind investor tool 43 44#23K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Creating the Future of Finance - Breakthrough Innovation Scale-up Innovation Products & Partnerships 1.3mn Users KhunThong Social chatbot helping friends settle expenses within a chat for a seamless payment experience поке A 1.4mn 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 เมืองไทย ประกันภัย SEARCH THE WQUCE 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 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBTG: Create the Future of Finance - The New S-Curve KX coral Launch New S-Curve Products KASIKORN X (KX) Incubate, scale, and spin-off new S-Curve businesses in DeFi • Coral A non-fungible token (NFT) marketplace platform that comes with artist 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 kubi technology for asset tokenization DESTINY TOKEN services and digital tokens ⚫ 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 Transak 11 Magic • KXVC Successfully closed Series A investment with Transak, the Web3 onboarding infrastructure provider and Strategic investment round with Magic, the Wallet-as- a-service (WaaS) solution. MIT Media Lab Member mit media KBTG became a Consortium Research Lab Member at MIT Media Lab to jointly conduct research on innovative technologies, namely metaverse, blockchain, and decentralized finance (DeFi), as well as areas such as sustainability and education บริการทุกระดับประทับใจ 46 46#24K KASIKORNTHAI KBTG Buildings and Awards HONGODB 2023 APAC INNOVATION AMARD WINNER Customer-Focused KBTG MongoDB. APAC INNOVATION ARD WINNER Customer Focused Recognition & Awards MongoDB APAC Innovation Award in Customer-Focused category for MAKE by KBank for utilizing the company's technology to develop the platform KBTG Main Building ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK EMPLOYE Employee Excellence ERIE Award Best Remote Management ARDS Strategy (Silver) category for exceptional SPOR management and support of our employees Hu Res to Work From Anywhere during and after COVID K+ Building K-Stadium at KBTG Main Building BOX Creative Box for small meetings BELL 05 04 SO Innovation Center K บริการทุกระดับประทับใจ K K+ Building: City-based KBTG office with co-working spaces Shared Working Space "Hackathon" Hall 47 47 . K KASIKORNTHAI Proactive Risk & Compliance Management Value Enabler Partner with business and provide effective integrated risk solutions Key Capabilities ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK • Predictive and integrated customer segment-based credit analytics Intelligent fraud management in all key business processes • Effective risk management execution for business partners, 3rd parties Enabling customers for ESG Transformation ◉ Credit risk analytics & integrated credit portfolio planning & monitoring Enhanced fraud analytics & incident management ■ Customer data protection 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 48#25K KASIKORNTHAI Cyber Security ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Enhancing comprehensive cyber security and IT capabilities; addressing and aligning critical capabilities to fortify cyber security Protect KBank's Cyber Assets & Reputation and Deliver Security, Resilience, & Trustworthiness Vision Statement Protect Customer Assets Customer Promise Strategy with KBank Digital frauds protection for customers Reduce loss of customer due to digital frauds & cyber cri Strategic Capabilities 1 Effective Risk Identification 2 Provide secured services Strengthen cyber resilience capabilities Continues enhance prevention, detection, response & recovery capabilities Advanced Threat Prevention 3 Ensure care & 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 K KASIKORNTHAI Improve Value-Based Productivity E2E Product Offering • Digital onboarding and servicing Sale & Service Optimization Enhance Sales Opportunities Strengthen digital-led sales and service Optimize physical service and human touch • ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK New product features and process design (e.g. Virtual Card) Operation & Back Office • Operational Excellence Workforce Management • Organization design for growth: Focus on productivity • Integrated development: Scale and integrate • Effective new way of work: Embed in work-life IT Effectiveness • KBTG Transformation ⚫IT Cost Optimization • Business Value generation and Productivity Enhancement Property & Facility • Efficiently manage demand and supply of property assets (Branch and Non-Branch) • Optimize cost of facility and equipment Other Marketing, Travelling & Communication Note: E2E Enterprise to Enterprise บริการทุกระดับประทับใจ 49 50#26K KASIKORNTHAI KBank: Business Highlights บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Customer Segments Corporate Business Multi-Corporate Business Large Corporate Business Company with annual sales >Bt5,000mn ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Company with annual sales >Bt400mn to Bt5,000mn 5 51 SME Business Retail Business Medium Business Small & Micro Business High Net Worth Individual Affluent Individual or company with annual sales >Bt50mn to Bt400mn Individual or company with annual sales ≤ Bt50mn, and with commercial credit limit Bt15mn Middle Income Mass Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt50mn Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt10mn to < Bt50mn Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt15,000 to < Bt10mn Individual wealth with KBank and its wholly-owned subsidiaries* < Bt15,000 Customer-centric strategy: offering a full array of financial solutions and a satisfying experience to our customers ➤ Synergistic portfolio management by monitoring eight customer segments ▸ Offer financial solutions from among KBank, its wholly-owned subsidiaries, and the insurance company Make significant progress towards long-term aspirations; performance on track Note: *Wealth with KBank and its wholly-owned subsidiaries is defined as savings and investments, such as deposit products with KBank, mutual funds with KAsset; or the monthly income of an individual customer บริการทุกระดับประทับใจ 52#27K KASIKORNTHAI Corporate Business: Key Performance Multi-Corporate Business Large Corporate Business Medium Business Small & Micro Business High Net Worth Individual ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Affluent Middle Income Mass ■ Aim to be trusted partner to enrich customers' businesses with best-in-class financial services and solutions Provide innovative and multi-sourced fund raising Offer total solutions for collection, payment, and settlement Enhance digital solutions and platforms Main Bank Main Bank Status* at 41% in 1H23 Key Performance #2 Corporate Bond Underwriting • With 15% market share in 1H23 #1 Mutual Fund Supervisor • With 39% market share in 1H23 50% 30% 43% 40% 37% 38% 39% 39% 39% 40% 41% 20% 19% 19% 40% 20% 17% | 15% 30% 30% (#2) (#3) (#1) 20% (#1) (#1) (#1) (#1) (#1) 20% 10% (#1) (#2) I 10% 10% 0% 0% 0% 2019 2020 2021 2022 1H23 2019 2020 2021 2022 1H23 2021 2022 1H23 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 March 2023 #1 in Market Share by SME loan outstanding 30% 23% 23% 23% 21% 20% (#1) (#1) (#1) (#1) 10% 0% 2020 2021 2022 1Q23 Source: Total SME loan outstanding from BOT Note: Main Bank Status = % of customers in the market who use KBank and its wholly-owned subsidiaries as their main operating bank and/or main savings and investment bank and/or main borrowing bank บริการทุกระดับประทับใจ 54 53 53#28K KASIKORNTHAI Private Banking Group: Key Performance . • • Multi-Corporate Business Large Corporate Business ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Medium Business Small & Micro Business High Net Worth Individual Affluent Middle Income Mass International comprehensive wealth management services Cooperate with Lombard Odier to raise service and product standards to international levels Provide integrated wealth planning services, advising families on wealth management, continuity, and growth Enhance use of technology to improve client experience Build comprehensive client insights from data-mining #1 Market Share by # of customers With 35.1% market share (12,633 customers) Key Performance • Growing AUM Bt777bn AUM in 1H23; growth -0.3% in 1H23 AUM Breakdown: Investment 60% and Deposit 40% 36% 35% 34% 34% 33% 2019 35% 35% 35% 35% 2020 2021 2022 (#1) 1H23 Source: Private Banking Group (market share by number of customers) ■Focus Customers (Type of Customer): (Bt bn) 800 750 717 700 788 775 779 777 650 2019 2020 2021 2022 1H23 ➤ 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 55 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 8.0% market share in 1Q23; 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 52% market share in 1Q23 Launched marketing campaign to boost up spending both domestic and cross-border #1 Mutual Fund AUM Highest share, 22.6% in 1H23 ⚫ Highest share in Money Market & Fixed Income Fund, Term Fund and Foreign Investment Fund #1 Credit Card spending with 20.8% market share in 1H23 #2 No. cards ⚫ with 15.5% market share in 1H23 ⚫ Card-accepting merchant services (online & offline platforms): ranked #1, with 34% market share by sales volume in 1Q23 #2 Bancassurance Premium • MTL ranked #2 in total, new business and renewal premiums with 1H23 market share of 15.4%, 15.8%, and 15.2% respectively. Bancassurance 21.8% 19.9% 19.3% 18.4% 18.3% 16.6% 17.1% 16.8%.6% 15.45.8% 5.2% (% Market Share) 10% Mortgage Loan Mutual Fund (% Market Share) (% Market Share) 9.2% 9.4% 8.3% 8.1% 8.0% 30% 20% 30% 22.1% 20.1% 21.8% 21.8% 22.6% 24.8% 23.0% 20.1% 20% 10% 10% 5% 0% 0% 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1H23 บริการทุกระดับประทับใจ 2019 2020 2021 New Business Total Premium 2022 Renewal Premium 1H23 56#29K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank and MTL Enter the 10 Years Bancassurance Agreement ■This transaction is a connected transaction, per Thai regulations, as it is conducted with MTL, a subsidiary which KBank effectively holds 38.25% shares. This transaction does not require shareholder approval at the Shareholders' Meeting as it is a normal business transaction conducted with general trading conditions. ■ KBank deems this transaction as a very important transaction. As such, KBank wants to solicit shareholder participation in the decision so as to enhance transparency and be consistent with good corporate governance practices. ■KBank's Board of Directors resolved to submit the transaction for shareholder approval at the Extraordinary General Meeting of Shareholders on August 26, 2021, and the Extraordinary General Meeting approved the transaction. ■KBank views the continuity of distributing the life insurance products of MTL according to this new Bancassurance Agreement, will: Provide maximum benefits to KBank's overall insurance business value; Provide more favorable conditions and greater benefits to KBank; Continue the cooperation through a 10-years relationship with MTL, a leading life insurance company; Cause no disruption in business operations with MTL and services provided to KBank customers. ■KBank appointed three external independent advisors to provide opinions on the transaction. ■ Key transaction summary of this exclusivity bancassurance agreement : KBank will receive payment of Bt 12.7 bn and annual performance bonus, in return for distributing MTL's life insurance products, health and critical illness insurance products. Amortization of BA agreement value (Bt 12.7 bn) and performance bonus will be recorded in non-interest income in Bank only financial statement and in non-controlling interest in consolidated financial statement. บริการทุกระดับประทับใจ K KASIKORNTHAI Total Economic Value ■ KBank still effectively owns 38.25% of MTL's equity. Bilateral negotiation is a balancing act. Sales Channel Value Company Value* + 1 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Impacts on Income Statement Bancassurance Agreement has impacts on following components in the income statement: KBank (Bank only): Non-interest income: + Bt 1,270 mn (average payment per year) + Performance Bonus MTL: 57 Commission Non-contingent Performance Bonus Bancassurance Exclusivity Value KBank's Share in MTL Equity (38.25%) *Non-listed company Potential destruction to our economic value caused by MTL having to find other sales channel replacement is high. Better value accretion can be achieved through this business alignment. ■ We considered the overall economic value to KBank from both sales channel value and company value i.e. if sales channel value increases, company value will decline. Non-interest expense: + Annual Payment Consolidated KBank: Non-controlling interest: 61.75% x annual payment after tax Consolidated net profit: 61.75% x annual payment after tax If NPE improves from this arrangement, KBank's consolidated income and MTL's NPE will rise. Note: • Annual payment = Bt1,270 mn (average payment per year) + performance bonus NPE = Net Premium Earned An average payment per year of exclusivity fee has been recognized on a monthly basis, starting from January 1, 2022 onwards. บริการทุกระดับประทับใจ 58#30K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Risk and Credit Management บริการทุกระดับประทับใจ 59 59 K KASIKORNTHAI KBank Risk Management Structure ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ■The Bank's organization is structured to facilitate all aspects of risk management; each business unit's responsibilities and segregation of duties are clearly identified in accordance with good internal-control practices Board of Directors Risk Oversight Committee Audit Committee Management Committee Credit Risk Management Sub-committee Credit Process Management Sub-committee Asset and Liabilities Management Sub-committee Market Risk Management Sub-committee Capital Management Sub-committee Operational Risk Sub-committee Business Continuity Management Sub-committee Information Technology Strategy Sub-committee Digital Oriented Risk, Data and Cyber Security - and IT Risk Management Sub-committee Sustainable Development Sub-committee Digital Asset Sub-committee ■ Approve risk appetite and all risk management policies and guidelines ■ Oversee effectiveness of consolidated risk management framework ■ Ensure effectiveness of overall risk management of the financial conglomerate ■ Establish risk management policies and risk appetites. Set risk limits for significant aspects of the various risks ■ Formulate strategy for the organization and resources to be used for the risk management operation, in line with the risk management policy. This strategy must enable the effective analysis, assessment, evaluation, and monitoring of the risk management system Business Units CBS/DNW/PBG/ CMB/IBB/WBG/CSI/ Risk Management and Control Units ERM Internal Audit ADD DAS/ICB/MMT/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 60#31Approval Process Post Approval K KASIKORNTHAI KBank Credit Risk Management Process ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The Bank continues to enhance credit risk management processes to promote risk strategies with justified risk-return tradeoff within the rapidly changing economic environment Portfolio Management ■ Determine portfolio-by-design taking into account risk-adjusted return trade-off ■Manage portfolio according to the Bank's risk appetite and concentration risk management (Country, Industry, Large Customer Group) ■ Perform stress testing to identify impacts to portfolio and proactively prepare appropriate management actions Origination Monitoring Collection & Recovery> ■ Enhance decision making/support tools for more efficient return and risk evaluation ■ Setup specific prescreening criteria for potential industries ■ Enhance customer income validation process ■ Monitor customer behavior and detect early warning signs ■Leverage National Credit Bureau information for effective credit monitoring ■ Ensure credit condition compliance (e.g. insurance, capital injection, project progress) ■Take prompt action to prevent credit deterioration บริการทุกระดับประทับใจ ■ Efficient collection and follow-up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss K KASIKORNTHAI KBank Credit Approval Process Corporate Credit Underwriting Dept. Policy Lending ⚫ Sufficiency of cash flow • Growth trends and ability to compete • Management experience and depth SME (Medium) Leverage, Liquidity, Asset Quality, ESG factors ⚫ Credit Risk Mitigation • Facilities Structure SME (Small & Micro) Retails (Housing) SME Credit and Housing Loan Approval Dept. Formula Lending Customer Integrated Credit Scorecard • Application Score • 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. Bank-wide Risk Asset Review Payment Service Fulfillment Department ⚫ Legal document ⚫ Limit set up • Customer Review by Relationship Manager (RM) ⚫ Credit Monitoring and Asset Management Unit to facilitate RM in customer monitoring . Credit Clinic Asset Quality Management Operation Dept. • Automated collection system Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter generation, phone-based collection Note: FICO Fair Isaac Corporation บริการทุกระดับประทับใจ 62 62 61#32K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank Credit Risk Management Process: Collection and Recovery Collection & Recovery Flow ■ Efficient collection and follow-up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss Debt Resolutions Performing Loans* Debt Collections Rescheduled Loans* (Financial Aid Program) Repayment of Rescheduled/ NPL** Restructured Term Loans with DPD > 1 day go to debt collection Restructured Loans (Not classified as NPL) stage Relapsed NPL Performing Loans Process Non-Performing Loans Move to Better Status Move to Worsen Status Litigation Process Write-off NPL Sales Note: * Rescheduled Loans are loans (no passed due date) that have changed payment conditions and not incurred losses. (Loans in the Financial Aid Program is a part of Rescheduled Loans) * Financial Aid Program helps customers during the bad macro business condition such as the big flood in 2011, the political unrest in 2014 and COVID-19 in 2020. * Performing loans = Pass Loans (loans passing the due date by less than 1 month) and Special Mention Loans (loans passing the due date by more than 1 month but not over 3 months) ** NPLs = Non-performing Loans loans passing the due date by more than 3 months = Sub-standard Loans, Doubtful Loans, Doubtful of Loss Loans, and restructured loans classified as NPL บริการทุกระดับประทับใจ 63 K KASIKORNTHAI TFRS9: Asset Class and Expected Credit Loss Stage 1: Perform New or good assets Probability of Default (PD) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Asset Class (Defined by Incremental Risks: New definition of SICR and Modified Loans) Stage 2: Underperforming Assets with "> 30 Days Past Due" or higher credit risk than origination capturing via risk information eg. Credit scoring, PD change etc. Expected Credit Loss (ECL): PD x LGD x EAD Incorporate forward looking over lifetime Macro-factor is captured through PD point-in-time Stage 3: Non-performing Defaulted assets Stage 1: Performing 1 Year Define relevant economic factors & scenario Incorporate through PD point-in-time Derive term structure PD & ECL by scenario Weight with probability for final ECL Stage 2: Under-performing Lifetime Stage 3: Non-performing Loss Given Default (LGD) Exposure at Default (EAD) Lifetime ■ Term structure PD is derived over behavioral life ■ Multi-scenario is weighted to come up with final Expected Credit Loss (ECL) Incorporate recovery from both collateral and cash payment Combination of drawn and undrawn as credit exposure ■ It is an accounting complication to treat drawn ECL as assets contra and undrawn ECL as liabilities, while to risk, both are "credit exposure" ■ Drawn is "outstanding amount + EIR adjustment"; Undrawn is "outstanding amount x conversion factor" "Drawn" Principal + Accrued Interest +EIR adjustment "Undrawn" Notional x CCF CCF could be regulatory CCF or behavioral CCF Note: Significant Increase in Credit Risk (SICR) reflects higher risk than origination, but not yet bad quality; modified loans are loans with changing terms and conditions, either good or bad; thus, it can be at any stage Drawn Loan amount that customer has already drawn down, which is booked under loans to customers or part of "Interbank and money market items" Undrawn = Credit facilities that are not utilized yet or credit facilities that are utilized but are booked as contingent liabilities, excluding derivatives EIR Effective Interest Rate; CCF = Conversion Credit Factor บริการทุกระดับประทับใจ 64 0#33K KASIKORNTHAI Litigation Process Litigation process in Thailand takes about 2-3 years Litigation Process Under Negotiation ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Period Negotiate, await approval, document Approximately 2 months preparation & lawyer process Pre-court (Notice) Issue notice & court filing Approximately 2 months In Court Trial / wait for court ruling Execution Collect payment ruled by court or foreclose Public Auction Liquidation process บริการทุกระดับประทับใจ Approximately 9-18 months Approximately 3 months Approximately 6-9 months K KASIKORNTHAI Credit Bureau Summary National Credit Bureau (NCB)* Two Types of Credit Reports Offered by NCB: ➤ Consumer credit report for individuals ➤ Commercial credit report for businesses Credit report (monthly reported by members) ➤ Customer information (Name, address, identification number, birth date, occupation, etc.) ➤ Credit information (History of application, approval history, loan payment history, etc.) Data Record of Credit Report Individuals: Credit report remains on file for 3 years ➤ Businesses: Credit report remains on file for 3 years ■Members: Financial institutions including commercial banks, specialized financial institutions (SFIs), non-bank financial institutions, finance companies, securities companies, insurance companies, etc. Note: ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank Practice KBank's customers applying for loans Sign agreement to allow the Bank Optional to (Large companies normally have reliable financial statements) Corporate Business to get credit report from NCB Required to Required to SME Business Multi- Corporate Business Large Corporate Business Medium Business Small & Micro Business Good credit Poor credit KBank's Policy Lending Reject application Retail Business 4 Customer Segments in Retail (HN, AF, MI and MA) Good credit Poor credit KBank's Credit Scoring Reject application * The concept of a credit bureau started in 1961 and central credit registration started in 1964. The Central Information Service was established in 1999 and its name was changed to Central Credit Information Service in 2000 and to the National Credit Bureau in 2005 บริการทุกระดับประทับใจ 65 66#34K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Proactive risk management to counter economic slowdown and high household debt Continue to deploy proactive credit portfolio / risk management / asset quality management to mitigate adverse impact from customers with significant credit deterioration, prolonged economic recovery, and high household debt Corporate Business ■ Focus on high potential industries less impacted by economic slowdown ■Closely monitor customers in high risk industries and supply chains ➤ Actively monitor early warning signs ➤ Promptly respond to adverse events ■Continuously improve credit monitoring tools to proactively alert to signs of credit deterioration ■ Enhance efficiency of credit processes for customers with different risk profiles SME Business ■Selective on quality of customers ■■Proactive risk management by visiting customers; raise productivity of sales teams and relationship managers ■■Efficient collection processes ■ Enhance efficiency of credit processes for customers with different risk profiles Retail Business ■Selective on high-value customers regarding prevailing BOT regulations and the Bank's policies ■ Proactive and efficient collection processes based on the Bank's models ■ Analyze behavior regularly to identify weak spots ■ Enhance efficiency of credit processes for customers with different risk profiles บริการทุกระดับประทับใจ 67 K KASIKORNTHAI K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK J JK Asset Management Co., Ltd. (JK AMC) KBank Company Profile jmt network services ⚫ 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 1H23 • Bt50.6bn* 2Q22 3Q22 JK AMC Business Plan Initial NPL • Starts transferred Operation KBank NPL Sales 2022 • Total transfer Bt50bn* (KBank) ⚫ Bt72.0bn* Note: *Legal claim amount, not book value of transferring amount; total KBank's NPL transferred mostly to JK AMC บริการทุกระดับประทับใจ 2025 • Target AUM Bt130bn (KBank and others) 68 880#35K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: Financial Performance Note: The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards. Some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9) บริการทุกระดับประทับใจ 69 K KASIKORNTHAI 1H23 Performance Highlights Consolidated Net Profit (Bt bn) Profitability - NIM - ROE* - ROA - YTD Loan growth 2021 2022 1Q23 2Q23 38.05 35.77 10.74 10.99 1H23 21.74 3.21% 3.33% 3.46% 8.44% 7.38% 8.43% 0.98% 0.86% 1.01% 7.88% 3.03% - YoY Loan growth - YoY Net fee income growth - YoY Non-interest income growth 7.88% 3.03% 7.01% (6.89%) (4.17%) (8.42%) 3.54% 8.65% 1.03% 1.02% (1.20%) (1.84%) (1.84%) 0.28% (1.61%) (1.61%) (8.13%) (5.31%) (6.77%) 32.00% 19.70% 25.64% 3.63% 8.82% Cost control - Cost to income 43.49% 43.15% 42.50% 43.37% 42.94% Asset quality 3.76% 1.73% 3.19% 2.11% 159.08% 154.26% 3.04% 2.05% 156.68% 93.20% 90.77% 90.85% 16.49% 16.84% 16.92% 3.20% 2.08% 147.31% 90.40% 17.04% 18.77% 18.81% 18.90% 19.01% 3.20% 2.06% 147.31% 90.40% 17.04% 19.01% - NPL ratio - Credit Cost - Coverage ratio Loans to Deposits Tier 1 Ratio CAR Note: Under Bank of Thailand regulations, net profit in the first half of the year is counted as capital after approval by the Board of Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General Meeting of Shareholders. However, when a net loss occurs, the capital must be reduced immediately Capital Adequacy Ratio (CAR) has been reported in accordance with Basel III Capital Requirement from January 1, 2013 onwards. CAR is based on KASIKORNBANK FINANCIAL CONGLOMERATE. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisting of KBank, K Companies, and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd., and other subsidiaries within the permitted scope of the BOT's definition to be a financial conglomerate * ROE = Net profit (attributable to equity holders of the Bank) deduct dividend from other equity instruments after income tax divided by average equity of equity excluded other equity instruments ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 1H23 net profit decreased -1.22% YoY, due to higher expected credit loss. However, EBPT continued to improve as a result of strong growth in operating income and consistently efficient expense management ■1H23 loans dropped -1.84% YTD from SME, Credit Cards, Personal loan, and from NPL outflow management, while Regional and KLeasing increased ■NIM was 3.54% in 1H23, increasing YoY, mainly due to higher interest rate, despite higher cost of fund from FIDF and higher deposit rate. More than 90% of interest income received in cash ■1H23 net fee income decreased -6.77% YoY, from Brokerage and Fund Management businesses in line with market conditions, and a drop in transaction service fees. 1H23 cost to income ratio was 42.94%, decreasing YoY, from net total income increased, despite higher operating expense (mainly due to employee expenses from one-time cost of living subsidy measures). Focus on cost management and productivity improvement, with new investments for future growth ■1H23 NPL ratio was at 3.20%, with a coverage ratio of 147.31% from proactively embarking and cooperating with professional partners to enhance the effectiveness of NPL management. Since 1Q23, the level of management overlay temporarily dropped from a one-time deterioration in a large corporate loan but stayed within our comfort range of 15-20%. Management overlay will be built up going forward, depending on the economic situation ■■2023 credit cost will remain high, and may slightly exceed the target range, but rising to no more than 210 bps, due to ongoing proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan 1H23 capital base remained sufficient to support business growth บริการทุกระดับประทับใจ 70 70#36K KASIKORNTHAI Consolidated Financial Statements Statements of Comprehensive Income (Bt mn) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2021 2022 2Q22 3Q22 4Q22 1Q23 2Q23 1H23 Interest income Interest expenses Interest income - net Fee and service income 135,415 151,333 36,367 37,620 41,421 42,441 45,215 87,656 16,024 18,334 4,355 4,532 5,274 7,566 8,514 16,080 119,390 132,998 32,012 33,088 36,148 34,875 36,701 71,576 48,628 48,345 11,683 12,099 12,197 12,529 11,877 24,406 Fee and service expenses 13,312 15,463 3,536 3,974 4,418 4,415 4,163 8,578 Fee and service income - net 35,316 32,882 8,147 8,125 7,779 8,114 7,714 15,828 Gain (Loss) on financial instrument measured at FVTPL 5,539 5,053 (452) 144 4,674 3,671 3,525 7,196 Share of profit (loss) from investments using equity method (694) 115 151 (40) 54 (0.01) (182) (182) Gain (Loss) on investments 817 (130) (135) (17) 38 (152) (212) (365) Net premium earned 69,360 66,056 14,393 17,853 18,091 18,422 15,361 33,783 Other operating income 1,289 2,123 406 614 675 512 532 1,044 Total operating income 234,328 242,542 55,745 60,606 67,973 66,419 64,556 130,976 Underwriting expenses 70,979 69,285 14,234 18,871 18,574 19,845 16,487 36,332 Total operating income - net 163,349 173,258 41,511 41,735 49,399 46,574 48,070 94,644 Total other operating expenses 71,044 74,753 18,070 18,251 21,042 19,793 20,847 40,640 Earning Before Provision and Tax 92,305 98,505 23,441 23,484 28,358 26,781 27,223 54,004 Expected Credit Loss 40,332 51,919 9,852 9,948 22,784 12,692 12,784 25,476 Impairment loss of loans and debt securities Operating profit before income tax expenses 51,973 46,585 13,589 13,536 5,574 14,089 14,439 | 28,528 Income tax expenses 9,729 8,633 2,454 2,546 933 2,562 2,760 5,322 Net profit attributable: Equity holders of the Bank 38,053 35,769 10,794 10,574 3,191 10,741 10,994 21,735 Non-controlling interest 4,192 2,183 341 416 1,450 786 685 1,471 Statements of Financial Position (Bt mn) Loans to customers Total Assets Deposits Total Liabilities Total Equity attributable to equity holders of the Bank 2021 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 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 2022 2Q22 4Q22 2,671,536 2,659,896 2,748,685 3,642,814 3,672,187 3,679,289 488,963 500,248 503,270 3Q22 2,489,420 2,464,277 2,495,077 2,465,031 2,449,289 2,449,289 | 4,187,779 4,229,795 4,246,369 4,238,084 4,268,100 4,268,100 I 2,713,372 2,709,500 2,709,500 3,661,550 512,421 1Q23 2Q23 1H23 3,687,141 3,687,141 516,353 516,353 71 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Earnings Before Provision and Tax (EBPT) and Net Profit June 2023 (Consolidated) EBPT (Bt bn) 100 87.76 92.31 98.50 1 84.89 80 60 40 20 0 2019 2020 2021 2022 Net Profit (Bt bn) 60 38.73 38.05 35.77 40 54.00 29.49 21.74 20 1H23 0 2019 2020 2021 2022 1H23 1H23 net profit decreased -1.22% YoY, due to higher expected credit loss. However, EBPT continued to improve YoY as a result of strong growth in operating income and consistently efficient expense management. EBPT (Bt bn) EBPT Growth (% YoY) 2019 87.76 0.72% 2020 2021 84.89 92.31 (3.27%) 8.73% 2022 98.50 6.72% 1H22 46.66 (1.31%) 1H23 54.00 15.73% 1Q23 26.78 15.32% 2Q23 27.22 16.14% Net Profit (Bt bn) 38.73 29.49 38.05 35.77 Net Profit Growth (% YoY) 0.70% (23.86%) 29.05% (6.00%) 22.00 21.74 12.72% (1.22%) 10.74 (4.19%) 10.99 1.86% บริการทุกระดับประทับใจ 72 22#37K KASIKORNTHAI Interest Income - net June 2023 (Consolidated) Interest Income and Interest Expenses ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Income - net (Bt bn) (Bt bn) 151.33 I 133.00 160.00 140.00 130.18 135.41 140.00 119.39 127.59 120.00 102.69 109.02 I 120.00 100.00 87.66 100.00 71.58 80.00 80.00 60.00 60.00 40.00 27.49 18.57 16.02 18.33 40.00 16.08 20.00 0.00 20.00 0.00 2019 2020 2021 2022 1H23 2019 2020 2021 2022 1H23 Interest income Interest expenses 1H23 net interest income increased 12.25% YoY, due to higher interest rate, despite higher cost of fund from FIDF fee resumption and higher deposit rate. Interest Income (Bt bn) Interest Expenses (Bt bn) Interest Income - net (Bt bn) Interest Income - net (% Growth YoY) 2019 130.18 27.49 2020 127.59 18.57 2021 2022 135.41 151.33 16.02 18.33 1H22 1H23 1Q23 2Q23 72.29 8.53 87.66 42.44 45.21 16.08 7.57 8.51 102.69 4.21% 109.02 6.17% 119.39 133.00 9.51% 11.40% 63.76 10.22% 71.58 34.88 36.70 12.25% 9.84% 14.65% 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 June 2023 (Consolidated) Non-interest Income to Average Assets ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 73 Non-interest Income Structure Net Premium Earned and Underwriting Expenses (%) (Bt bn) (Bt bn) 4 65 57.80 (+2%) 120 80.49 100 60 3 45.87 80 80.65 72.13 72.56 69.36 70.98 66.06 69.28 55 43.96 60 1.79 I 2 50 1.32 1.13 0.96 1.08 45 (-21%) 4% 40.26 33.78 36.33 (-4%) 40 (-8%) 20 5% 23.07 0 40 64% 2019 35 2020* Net premium earned 2021 0 2019 30 2020* 2021 2022 1H23 72% (+26% YoY) 80% 25 82% 5% 2022 1H23 Underwriting expenses Net Premium Earned - net Non-interest Income by Business** I 20 (Bt bn) 5% 0.1% 69% 14 (Bt bn) 15 Corporate Business SME Business Retail Business 15% 10 5% 80 3% 8% 5 14% 18% 57.80 -0.4% 13% 9% 0.3% 9% 31% 10 13% 6 60 0 -0.3% -2% 45.87 43.96 29.4% 40.26 -5 2019 2020* -1% 2021 -4% -0.3% 2022 -8% 1H23 2 -11% -0.16 -0.44 -1.62 -3.23 -2.55 40 21.0% 20 49.6% 31.3% 18.5% 50.2% -2 29.1% 34.3% 23.07 Other operating income Fee and Service Income - net 17.9% -6 53.0% 19.6% 46.1% | 35.2% 41.8% Net earned premium-net Dividend Income 23.0% 0 2019 2020* 2021 2022 1H23 Share of profit from investments on equity method Gain on financial instrument measured at FVTPL (Gain on Trading and FX transactions-Old) Gain on investments 2019 2020* 2021 2022 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. 1H23 Non-interest Income (Bt bn) Non-interest Income Growth (% YoY) Non-interest Income Ratio (%) 2019 57.80 2020 45.87 2021 43.96 2022 40.26 1H22 18.36 1H23 23.07 1Q23 11.70 2Q23 11.37 1.51% (20.65%) (4.17%) (8.42%) 36.02 Note: Non-interest Income Ratio = Non-interest Income/Total Operating Income - net - Net Premium Earned net Net Premium Earned less Underwriting Expense and others 29.61 26.91 23.24 - The Bank and its subsidiaries have adopted TFRIC 13: Customer Loyalty Programmes since January 1, 2014 onwards * The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years' financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). ** Non-interest income excludes capital market business, treasury business บริการทุกระดับประทับใจ (20.28%) 22.36 25.64% 32.00% 19.70% 24.37 25.12 23.65 74#38K KASIKORNTHAI Net Fee Income and Structure June 2023 (Consolidated) Net Fee Income ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Net Fee Income by Products (Bt bn) (Bt bn) 36.74 40 35.32 33.00 32.88 40 36.74 35.32 30 35 13% 33.00 32.88 7% 20 15.83 6% 8% 13% 30 6% 10 22% 6% 25 24% 26% 0 6% 22% 2019 2020 2021 2022 1H23 3% ■Credit Cards Business ■Transaction Services ■Commercial Credit Cash management Trade Finance ■Fund Management Business 20 6% 4% 7% 15.83 Net Fee Income to Net Total Operating Income 21% 4% Brokerage Business 15 21% 12% 20% (%) 30 17% 5% Others 22% 10 8% 22% 22.89 21.31 21.62 21% 17% 15% 4% 17% 18.98 20 20 16.72 5 15% 13% 13% 12% 16% 17% 0 10 2019 2020 2021 2022 1H23 0 2019 2020 2021 2022 1H23 Fee Income (Bt bn) Fee Income-net (Bt bn) Fee Income Growth (% YoY) Net Fee Income Growth (% YoY) 1H23 net fee income decreased -6.77% YoY mainly from brokerage and fund management businesses in line with market conditions, and a drop in transaction service fees. 2019 2020 2021 2022 1H22 1H23 1Q23 2Q23 50.58 45.70 48.63 36.74 33.00 35.32 48.35 32.88 24.05 24.41 12.53 11.88 16.98 15.83 8.11 7.71 22.89 (1.19%) (9.65%) 6.41% (0.58%) (3.61%) (10.17%) 7.01% (6.89%) 21.31 21.62 18.98 (1.66%) (5.71%) 1.48% (6.77%) 1.31% (8.13%) 1.66% (5.31%) 20.67 16.72 Net Fee Income to Net Operating Income Ratio (%) Note: 17.42 16.05 - 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 June 2023 (Consolidated) Net Fee Income by Product Brokerage Business 5% Others 12% Credit Card Business 17% Fund Management Business 22% Trade Finance 8% Cash ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Transaction Services 15% Commercial Credit 17% ■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.) Management 4% Loan Related and Non-loan Related Fees - net Non-loan related 84% Loan related 16% 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 75 76#39K KASIKORNTHAI Other Operating Expenses June 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% Taxes and duties I 50 7% 7% 8% 8% 40.64 Premises and equipment expenses 40 18% 17% 16% 15% ■Directors' remuneration 0.2% 0.2% 0.2% 28% 0.2% 30 8% ■Employee's expenses 14% 20 0.3% 46% 46% 49% 46% 10 49% 0 2019 2020 2021 2022 1H23 1H23 other operating expenses increased 14.61% 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 1H22 35.46 1H23 40.64 1Q23 19.79 2Q23 20.85 Other Operating Expenses Growth (% YoY) 6.41% (3.76%) 1.50% 5.22% 5.53% 14.61% 13.82% 15.37% บริการทุกระดับประทับใจ K KASIKORNTHAI Loan Structure and Loan Growth June 2023 (Consolidated, TFRS 8: Operating Segments*) Loan Portfolio Structure (Bt bn) Consolidated 2,800 2,421 2,495 2,449 2,245 2,400 2,002 2,000 34% 36% 35% 36% 1,600 35% 1,200 33% 31% 31% 34% 33% 800 Corporate ■SME ■Retail Others SME Loans Corporate Loans Retail Loans 400 28% 28% 29% 28% 28% Other Loans Total Loans 1) 0 4% 3% 4% 5% 6% 2019 2020 2021 2022 1H23 Loan Growth (% YoY) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Loan Portfolio Amount (Bt bn) Dec 22 Jun 23 1H23 1H23 Y2023 Loan Growth Yield Range Loan Growth Target (%) (%) 880 866 (1.6%) 2-4% 780 751 (3.7%) 5-7% 703 684 (2.6%) 5-7% 132 148 12.1% 2,495 2,449 (1.8%) 5.7% (%) 4-6% 1-2% 2-4% 5-7% 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 1H23 WBG loans were Bt95bn, increased 16.4% YTD, and 67.6% YoY Loan by Retail Products (All Segments)** 77 (%) (Amount in Bt bn) 15 10 50505 12.13 7.88 4.59 3.03 2019 2020 2021 2022 -1.61 1H23 Housing Loans Credit Cards Consumer Loans KLeasing Loans (Bt bn) Loan Growth (% YoY) Loan Growth (% YTD) Dec 22 Jun 23 Y2022 1H23 % Portion Loan Loan Growth Growth to Total Loan (%) (%) 443 437 (8.3) (1.2) 17.9 109 100 7.4 (8.6) 4.1 73 65 11.2 (11.8) 2.6 137 145 13.4 5.4 5.9 2021 2,422 2022 1H22 1H23 1Q23 2Q23 2,495 2,489 2,449 2,465 2,449 4.45% (1.61%) 0.28% (1.61%) 7.88% 2.79% (1.84%) 2019 2020 2,002 2,245 4.59% 12.13% 7.88% 3.03% 4.59% 12.13% 3.03% (1.84%) (1.20%) 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 78#40K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Loan Portfolio Breakdown by Business, Residency of Borrowers, and Maturity of Interest Repricing June 2023 (Consolidated) (Bt bn) 3000 Loan Portfolio by Business* By Residency of Borrowers (December 2022)* Foreign 5.14% 2,495 2,422 2,449 2500 2,245 Others 2000 1500 1,781 1,527 1,610 1,680 15.7% 14.5% 13.3% 13.3% 13.6 % 15.3% 1,977 1,891 17.7% 18.3% 18.4% 16.8% Housing loans 1000 6.9% 6.6% % 15.3% % 16 14.5% 14.3% 14.7% 14 8% 8.8% 12.5% 13.2% 14.8% 13.9% 13.7% 13.0% 6.8% 8.6% 9.0% 9.1% 8.6% 8.6% 8.4% 11 % Infrastructure and services 14.1% Property development and construction Manufacturing and commerce 500 48.1% 49.1% 48.6% 47.9% 46.7% 44.5% 41.7% 40.5% 42.1% 41.7% 0 ■Agriculture and mining 2.0% 1.9% 2.1% 1.9% 1.8% 1.7% 1.6% 1.4% 1.5% 1.6% 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H2023 Domestic 94.86% By Maturity of Interest Repricing (December 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 Proportion of KBank's Outstanding Lo: 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Bangkok and Metropolitan Upcountry 64% 63% 64% 62% 59% 58% 62% 62% 65% 36% 37% 36% 38% 41% 42% 38% 38% 35% > 6 months 19.98% Others 0.65% <=6 months 9.36% 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 June 2023 (Consolidated) NPL Ratio บริการทุกระดับประทับใจ Coverage Ratio ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Classified Loans** 79 19 (%) (%) 5 200 3.93 3.65 3.76 148.60 149.19 159.08 154.26 147.31 4 3.19 3.20 150 (Bt bn) Stage 1 Performing Stage 2 Under-performing Stage 3 Non-performing 2021 2,130 2022 1Q23 2Q23 2,230 2,211 2,192 202 188 181 179 106 93 89 94 3 100 Total 2,438 2,511 2,481 2,465 2 1 0 50 0 2019 2020 2021 2022 1H23 2019 2020 2021 2022 1H23 NPL ratio in 1H23 was at 3.20%, with a coverage ratio of 147.31%. 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. 2019 2020 2021 2022 1H22 1H23 1Q23 2Q23 NPL Ratio (%) 3.65 3.93 3.76 3.19 3.80 3.20 3.04 3.20 Coverage Ratio (%) 148.60 149.19 159.08 154.26 144.61 147.31 156.68 147.31 SML to Total Loans Ratio (%)* 2.80 Loans with significant increase in credit risk (%) 7.80 7.27 6.47 6.54 6.15 6.25 6.15 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). ** 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 80#41K KASIKORNTHAI Expected Credit Loss and Credit Cost June 2023 (Consolidated) Impairment Loss of Loans and Debt (Bt bn) Securities Expected Credit Loss ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Cost 60 51.92 50 43.55 40.33 40 34.01 30 20 10 0 2019 2020 2021 2022 (bps) 350 300 205 211 I 206 250 25.48 174 173 200 150 100 50 0 T 1H23 2019 2020 2021 2022 1H23 Since 1Q23, the level of management overlay temporarily dropped from a one-time deterioration in a large corporate loan, but stayed within our comfort range of 15-20%. Management overlay will be built up going forward, depending on the economic situation. ■ 2023 credit cost will remain high, and may slightly exceed the target range, but rising to no more than 210 bps, due to ongoing, proactive asset quality cleanup efforts, and a one-time deterioration in a large corporate loan. 2019 2020 2021 2022 1H22 Expected Credit Loss (Bt bn) 34.01 43.55 40.33 51.92 19.19 1H23 25.48 1Q23 2Q23 12.69 12.78 (Impairment Loss of Loans and Debt Securities) Credit Cost (bps) 174 205 บริการทุกระดับประทับใจ 173 211 156 206 205 208 81 K KASIKORNTHAI Bad Assets Resolution June 2023 (Consolidated) Write-offs ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) NPL Portfolio Sales (Bt bn) 70 60 50- 40- 30 20 10 5.5 4.3 3.9 5.0 0 19.9 10.7 10.3 10.1 9.6 7.3 26.4 80 59.0 70 60 50 40 30 27.4 15.4 21.5 11.4 8.4 6.4 7.1 6.8 10 2008-2015: 2021: no bulk NPL sales 5.3 0 no NPL sale 2007 2008 2015 2016 2017 2018 2019 2020 Gill 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Outstanding Foreclosed Properties NPL sales legal claim amount, not book value of transferring amount 72.0 50.6 2021 2022 1H23 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 (Bt bn) 54.7 53.1 46.3 31.5 28.4 24.9 12.5 12.1 13.4 16.1 17.4 19.6 13.1 6.5 5.4 5.6 5.0 4.8 4.1 4.0 4.3 4.2 2.8 3.0 2.9 3.0 2.4 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 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 82 22#42K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK TFRS 9: Investment in Securities Portfolio and Structure June 2023 Instrument Type (Consolidated) Financial Assets Classification (TFRS 9) Consolidation Bank only (Bt bn) 1,200 (Bt bn) 1,098 1,029 1,054 1,098 1,029 0.4% 1,054 824 0.9% 1.0% 1,200 11% 0.3% 1,000 777 11% 11% 824 1.0% 0.8% 0.3% 11% 1,000 800 0.4% 12% 11% 10% 0.2% 17% 14% 17% 18% 800 56% 15% 560 504 600 15% 62% 64% 478 20% 600 56% 8% 329 18% 30% 13% 16% 400 400 61% 59% 59% 38% 11% 33% 35% 30% 56% 200 53% 54% 200 38% 32% 67% 50% 43% 6% 0 0 6% 6% 5% 5% 8% 4% 6% 2019 2020 2021 2022 1H23 2020 2021 Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) Equity Investment Foreign Bonds Corporate Bonds ■Government & State Enterprise Bonds 2022 Investments Subsidiaries 1H23 2020 2021 2022 1H 23 Amortized Cost 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. 2018 2019 Investment Portfolio (Bt bn) 663 777 2020 824 2021 2022 1,098 1,029 1H22 1H23 1,050 1,054 1Q23 2Q23 1,057 1,054 Investment Portfolio (% Growth YoY) 23.51% 17.22% 6.15% 33.16% (6.23%) 11.03% บริการทุกระดับประทับใจ 0.38% (2.08%) 1 0.38% 83 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Deposits Growth and Loans to Deposits Ratio June 2023 (Consolidated) Deposits Loans to Deposits Ratio (Bt bn) 100% 3,000 2,599 2,749 2,709 96.6% 2,345 95.7% 2,400 2,072 95% 93.2% 1,800 90.8% 90.4% 1,200 90% 600 0 85% 2019 2020 2021 ■Deposits 2022 1H23 2019 2020 2021 2022 1H23 Loans to Deposits Deposits and Loans to Deposits Ratio is in line with peers. 2018 2019 2020 2021 2022 1H22 1H23 Deposits (Bt bn) 1,995 2,072 2,345 2,599 2,749 2,672 2,709 1Q23 2,713 2Q23 | 2,709 Deposits (% YoY) Deposits (% YTD) 6.2% 3.9% 13.2% 10.8% 5.8% 6.2% 3.9% 13.2% 10.8% 5.8% 7.7% 1.4% 3.0% 1.4% 2.8% (1.4%) (1.3%)! (1.4%) Loans to Deposits Ratio (%) 95.9% 96.6% 95.7% 93.2% 90.8% 93.2% 90.4% 90.9% 90.4% บริการทุกระดับประทับใจ 84#43K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Funding Structure and Interest Rate Movement June 2023 (Consolidated) Funding Structure Deposit Structure (Bt bn) 3,200 2,236 2,502 2,889 2,972 2,975 (Bt bn) 2,599 2,749 2,709 2,800 I 6% 6% 6% 2,345 2,800 2,400 2,072 18% 20% 18% 3% 3% 2,400 2% 3% 20% 2,000 4% 23% 2,000 3% 4% 1,600 1,600 76% 75% 1,200 76% 1,200 71% 74% CASA = 80% 800 93% 94% 90% 92% 91% 800 400 400 6% 0 0 6% 6% 6% 2019 2020 2021 2022 1H23 2019 2020 2021 2022 5% 1H23 ■Current ■Savings Term Deposits ST and LT Borrowings Interbank and Money Market KBank Interest Rate Movement (Retail customers) ST and LT Borrowings (%) Deposit rates (%) (October 4, 2023) 8.00 Savings 0.30 (Bt bn) 7.00 103 Fixed 3M-12M 1.05-1.70 125 99 6.00 82 100 69 68 5.00 Fixed 24M-36M 2.15-2.30 75 4.00 Lending rates (%) (October 4, 2023) 99% 87% 50 97% 93% 3.00 100% MLR 7.27 25 2.00 1% 13% 3% 7% 0 1.00 MOR 7.59 2019 2020 2021 2022 1H23 0.00 MRR 7.30 2016 2017 2018 2019 2020 2021 2022 10M23 ■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 86 85 85#44K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank: The wholly-owned subsidiaries, and Muang Thai Life Assurance บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: Business Profile and Aspiration June 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 Bt2.72bn Market Share Bt0.17bn Bt29.11bn 18.3% #1 Awareness based on a survey 2.7% (#12) Bt145.59bn Bt23.11bn 9%1 14% 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 88 80 80 87#45K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK The wholly-owned subsidiaries of KBank: 2023 Key Operating Performance June 2023 KAsset EST. Mar 1992 KResearch EST. Dec 1994 KSecurities EST. Jul 2002 KLeasing EST. Dec 2004 2023 Key Operating Performance (7.1% YoY) Assets Under Management (AUM): Bt1.56trn #1 Awareness based on a survey Trading volume: Bt360bn - Number of customers grew 8% YoY KF&E EST. Jul 1990 Outstanding loans: Outstanding loans: Bt144.79bn (+13.20% YoY) Bt24.06bn (+1.96% YoY) (Bt bn) 7 896543210 The wholly-owned subsidiaries of KBank: Net Profit 5.99 5.39 5.6 4.91 4.56 3.66 3.85 3.23 7.2 6.26 2.96 Net profit dropped from the same period of 2022, -10.04% YoY. However, KBank continues to create synergy among its wholly- owned subsidiaries. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 บริการทุกระดับประทับใจ K KASIKORNTHAI KAsset Highlights in 1H23 June 2023 หลักทรัพย์จัดการกองทุนกสิกรไทย #KASIKORN ASSET MANAGEMENT AUM (KAsset vs. Industry) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 89 (Bt bn) 10,000 8,000 6,000 6,9597,173 7,7378,279 8,750 8,2288,557 (Bt bn) 2,000 6,368 5,118 5,534 4,253 4,000 3,015 742 1,0901,132 1,240 1,303 1,380 1,431 1,477 1,575 1,489 1.563 1,500 946 1,000 851 2,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Industry KAsset Market Share by AUM 500 Industry Outlook: 1H23 industry AUM at Bt8.56trn, increasing 5.1% YoY ■KAsset AUM at Bt1.56trn, increasing 7.1% YoY KAsset Highlights: ■Ranked #1 in Mutual Fund and #2 in Provident Fund with market share of 22.6% and 17.1%, respectively Ranked #2 in total AUM with market share of 18.3% Mutual fund accounts for 72% of KAsset AUM KAsset AUM Breakdown by Type (%) 30.0 21.4 18.5 17.8 18.018.118.3 19.5 19.019.6 20.5 15.0 11.3 10.5 10.210.4 9.9 10.7 9.6 10.1 9.3 9.2 7.1 6.5 6.8 6.8 6.6 0.0 KAsset SCBAM BBLAM KTAM 2019 2020 2021 2022 1H23 KSAM 36.1 35.935.8 35.5 31.0 Provident Fund 15% Other บริการทุกระดับประทับใจ Private Fund 13% Mutual Fund 72% 90 90#46K KASIKORNTHAI KResearch Highlights in 1H23 June 2023 ศูนย์วิจัยกสิกรไทย 开康研究中心 KASIKORN RESEARCH CENTER 30,000 Number of News Quotes 25,000 20,000 23,873 22,431 18,047 14,532 15,000 11,500 10,000 7,910 8,452 11,779 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 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 5,000 0 2016 2017 2018 2019 2020 2021 2022 1H23 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 1H23 June 2023 ลีสซิ่งกสิกรไทย ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 91 开泰超 KASIKORN LEASING KLeasing vs. Industry (Thousand Units) 1,500 Industry Outlook: (Bt bn) 1H23 industry car sales totaled 406,131 units 250 1,042 1,008 200 KLeasing Highlights: 1,000 872 848 800 769 792 762 150 145 137 500 108 115 115 121 406 100 89 91 97 50 2 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Total Car Sales in Thailand - KLeasing Outstanding Loans Market Share by Total Outstanding Loans (%)¹ 1H23 KLeasing loans totaled Bt144.79bn, increasing 13.20% YoY 1H23 KLeasing NPL ratio was 1.66%, lower than the industry average³ KLeasing Outstanding Loans Breakdown² (%) 50 25 2929292829 2828272827 0 AYCAL TTB 2019 ■2020 1616161413 89 101212 1111101010 77899 SCB KK TISCO KLeasing ■2021 2022 1H23 Note: 1 Excluding captive and non-bank leasing Floorplan 7% Fleet / Finance Lease 17% Hire Purchase 76% 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 Y2022 = 1.88% บริการทุกระดับประทับใจ 92#47K KASIKORNTHAI KSecurities Highlights in 1H23 June 2023 (Bt bn) หลักทรัพย์กสิกรไทย #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 1,400 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 12,000 7,962 8,640 430 411 683 812 860 868 6,000- 207 117 0 (%) 10.0 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (Bt bn) 2,000 Industry Outlook: 1H23 industry trading volume* was Bt13.20trn, decreasing 31% YoY KS trading volume was Bt360.38bn 1,200 KSecurities Highlights: 1,000 13,197 800 600 400 360 200 0 KS ranked #12, with 2.73% market share Majority of revenue came from brokerage Number of customers account grew 8% YoY to 365,781 customers in 1H23 KSecurities Revenue by Business 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Total Industry Trading Volume KS Trading Volume Market Share by Trading Volume* 5.0 3.83.7 3.0 3.43.53.43 3.02.7 3..3.0 1.92.42.42.21.9 0.0 KS INVX KTX 4.24.95.4 4.75.0 6.16.35.1 4.7 4.0 2.92.92.1.91.7 BLS TNS MST 2019 2020 2021 2022 1H23 Note: * Industry trading volume excluding proprietary trades บริการทุกระดับประทับใจ Investment Banking 6.6% Brokerage and other 93.4% 93 K KASIKORNTHAI KF&E Highlights in 1H23 June 2023 แฟคเตอรี แอนด์ อีควิปเมนท์ กสิกรไทย 开泰设备融资 KASIKORN FACTORY AND EQUIPMENT KF&E Loan Outstanding 25.11 25.15 24.31 24.06 (Bt bn) 30.0 25.0 22.88 20.38 20.0 17.63 15.0 10.0 5.0 0.0 2017 2018 2019 2020 2021 2022 1H23 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: 1H23 KF&E loan outstanding was increased Bt24.06bn, +1.96% YoY KF&E currently ranked #2; maintaining lead position in equipment leasing industry Note: In 2010, KASIKORN FACTORING (KFactoring) was renamed KASIKORN FACTORY AND EQUIPMENT (KF&E) to better reflect their business, focusing on offering leasing services. for machinery and equipment; the factoring business operation of KFactoring was transferred to KBank บริการทุกระดับประทับใจ 94#48K KASIKORNTHAI KASIKORN INVESTURE COMPANY LIMITED (KIV) A holding company under KASIKORNBANK FINANCIAL CONGLOMERATE to invest in other companies with its partners Investment Value Total around 30,000 There are Million Baht 14 Companies under KIV's structure ⚫ KASIKORN LINE COMPANY LIMITED (JV) • KASIKORN LINE INSURANCE BROKER COMPANY LIMITED Operate business related to personal loan, nano loan and insurance broker business via LINE platform NGERN HAI JAI COMPANY LIMITED (Investment) ⚫ CAR HERO COMPANY LIMITED Operate business related to auto loan CAR HERO • JK ASSET MANAGEMENT COMPANY LIMITED (JV) ⚫ J ASSET MANAGEMENT COMPANY LIMITED (Investment) Operate business related to bad K debt management both secured and unsecured loan (Debt collection) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK • KASIKORN CARABAO COMPANY LIMITED (JV) Provide financial service for TD's retail customers and stakeholders of Carabao Conglomerate • TD TAWANDANG COMPANY LIMITED kbao ตะวันแดง (Investment) Operate retail management business under brand TD KASIKORN LINE TD KV KASIKORN INVESTURE Travel Ecosystem Platform* Travel Ecosystem T2P HOLDINGS THINKERFINT ⚫ T2P HOLDINGS COMPANY LIMITED* Operate business related to e-wallet as a financial transaction solution and provide Nano loan to small merchants ⚫ THINKERFINT COMPANY LIMITED (Investment) Operate business related to system development to support credit approval decision KAPTURE <ONE KGP KAPTURE ONE COMPANY LIMITED (JV) A loyalty management company to provide loyalty service for KBank and its subsidiaries BUZZEBEES COMPANY LIMITED (Investment) A leading CRM and customer engagement solution KASIKORN GLOBAL PAYMENT COMPANY LIMITED* Provide digital payment services for merchants with wide range of sources of fund Note: In the restructuring process K KASIKORNTHAI KIV Business Model Mass Market Online platform and travel solution for corporates and retails Grab GRAB HOLDINGS LIMITED (Investment) The digital platform for on demand service บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Opportunity to Improve Profitability KIV Business Model Profitably Servicing the Mass Market (Inclusive of Underbanked) Major Financial Services Categories Deposit / Saving / Source of Fund e-Wallet Infrastructure Group-Savings Payment / Channels e-Wallet Bank's + Partner's Capabilities = Cost Down • Non-Corp Loans Asset-Based Investment Insurance Brokerage • Payment Gateway Loyalty Points Credit Scored • P2P Borrow-Lend Value-Chain Based . Foreign Currency Deposit Wallet KAPTURE LINE BK TPP KGP ONE LINE BK BUI kbao K Over 15 Million Users Over 10 Billion Baht LINE BK T2P To Be Launched % Key KBank's Capabilities 888 K+ Over 20 Million K Plus Users Sales & Service Channel (Selling / KYC) Note: According to BOT's Survey on Financial Inclusion, there were 45.5% usage, 49.5% self-exclusion, and 5% no-access. บริการทุกระดับประทับใจ Data Core IT Back-End Funding 96 95 55#49K KASIKORNTHAI KIV's Economic Value Economic Profit¹) Million Baht 81 900 - 1,100 2022 2023 KIV's Investment Value²) 21,500 25,000 30,000 No. of Investment 6 14 Loan Book 37,000³) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 4,500 - 5,000 2026 65,000 70,000 14 75,000 80,000 40,000 45,000 Significantly increase KBank's corporate values • Faster Speed and Efficiency of Business Operations • Better Cost Effectiveness • More Accessibility in Ecosystems • A Crucial Role to Boost KBank's ROE Performance in the Next 3-5 Years Note: 1) Economic Profits = Profit Sharing of Companies Under KIV + Net Interest Income from Loan to Companies Under KIV + Additional Sale and Service for KBank 2) Investment Value = Capital Injection + Accumulated Profit Sharing of Companies Under KIV + Realized and Unrealized Gains (Losses) on Investment บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Accounting Treatment of KIV on KBank's Consolidated Financial Statements KBank Statement of Financial Position Assets Cash Financial assets measured at FVTPL Investments - net Investments in subsidiaries, associates and joint venture - net Premises and equipment - net Other assets Liabilities and Equity Total Liabilities Total Equity Accounting Treatment: . KIV 1.Subsidiaries Accounting Method: Consolidation 2.Associate / Joint Venture Accounting Method: Equity Method 3.Investment (FVTPL, FVTOCI) Accounting Method: Fair Value Subsidiaries: line by line consolidation to statement of financial position, profit and loss and OCI Associate / Joint Venture: Investment return from net profit as share of profit (loss) from investments using equity method and from OCI as share of OCI from investment using equity method Investment: 。 Investment return as dividend income (equity instrument) and interest income (debt instrument) о Investment value is mark to market to statement of Profit and Loss or OCI subjected to the instrument type บริการทุกระดับประทับใจ KBank Statement of Profit or Loss Interest income - net Fees and service income - net Gain (loss) on financial instrument measured at FVTPL Share of profit (loss) from investments using equity method Dividend income Total other operating expenses Expected credit loss Net Profit Statement of Other Comprehensive Income (OCI) Gain (loss) on investments in equity instruments designed at FVTOCI - net 98 97 40#50K KASIKORNTHAI Life Insurance Industry in Thailand Premium per % GDP by Country (%) 20.0 15.0 14.0 11.6 10.0 8.2 6.45.85.4 7.67.57.4 5.0 3.23.23.0 4.03.93.7 1.11.00.9 2.4.12.0 3.43.4.4 Taiwan South Korea Singapore Australia India Malaysia China Thailand Y2020 Y2021 Y2022 1.410.9 1.21.51.3 1.61.0.6 Indonesia Philippines Vietnam ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK In 2022, Thailand insurance penetration rate was 3.4% with a high opportunity for growth. ■Muang Thai Life Assurance (MTL) ranked #4 in life insurance industry in Thailand, in 1H23 with 11.9% market share of total premium. #4 in life insurance industry in Thailand, in 2022 Source: Swiss Reinsurance Size of Market by Premium(%) Market Share by Total Premium in Life Insurance (%) Source: The Thai Life Assurance Association Total Premium (Bt bn) CAGR'13-22: 5% 700.0 600.0 New Business Premium (%) (Bt bn) | 614.1 611.4 30.0 24.9 25.6 ■2021 2022 1H23 200.0 25.0 24.0 180.0 500.0 601.7 627.4 400.0 503.9 537.5 568.3 610.9 600.2 442.5 300.0 200.0 100.0 160.0 20.0 16.0 140.0 14.7 15.0 13.2 13.7 14.4 120.0 100.0 4.13.1 11.1.3.1.9 10.0 300.0 80.0 8.1.1 7.4 5.8 60.0 5.2 5.6 5.8 5.9 5.3 5.1 7.1 7.5 7.4 5.0 5.1 4.4 2.0 2.4 40.0 2.3 1.51.7 20.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 ΑΙΑ FWD TLI MTL KTAL AZAY BLA PLT OLIC TMLTH Others New Business Premium Total Premium * New Business Premium in 1H23 = Bt86.8bn 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 1H23 Bancassurance Market Share by Total Premium (%) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (%) 40 33.6 30 28.6 27.3 18.4 20 20 10 0 ■2021 ■2022 1H23 99 16.8 15.4 916 911.5 9.18.0 07.8 8.38.77.4 8.58.4 8.7 6.8 6.26.0 3.84.44.5 $1.72.43.2 1.8 1.81.5 2.3.7 2.4 FWD MTL PLT KTAL BLA TLI AIA AZAY DLA GT Others Bancassurance Market Share by New Business Premium (%) MTL ranked #2 in Bancassurance market #2 in Bancassurance total premium with 15.4% market share #2 in Bancassurance new business premium with 15.8% market share 30 20 (%) 27.0 21.31.2 18.3 17.1 15.8 17.8 13.3 ■2021 ■2022 1H23 11.9 10 10.6 8.1 9.87.6 5.3 3.9 7.4 7.79 4.9 5.2 3.9 4.76.14.6 5.9 3.3 6.1 0 2.6 3.4 3.2 4.0 5.8 FWD MTL PLT DLA AIA KTAL 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 100#51K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank's Strategic Acquisition in Muang Thai Group Holding (MTGH) MTL's insurance business supports KBank's strategic objective of providing a full range of financial services to satisfy customers' needs and universal banking platform MTGH MTI MTL MTB FVC AIGEN MTIB Current KBank Economic Interests Muang Thai Group Holding Co., Ltd. (MTGh) 51.00% Muang Thai Life Assurance PCL. (MTL) 38.25% Muang Thai Insurance PCL. (MTI) 10.20% Muang Thai Broker Co., Ltd. (MTB) 50.99% MT Insure Broker Co., Ltd. (MTIB) Fuchsia Venture Capital Co., Ltd. (FVC) AIGEN Co., Ltd. (AIGEN) 38.25% 38.25% 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 Jun 2023) 101 2021 2022 1H23 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. 33.9 11.8 45.7 7.0 27.3 3.6 1.3 Operating expenses & Other 5.5 4.6 2.6 Key Financial Targets Total Expenses 82.0 79.6 41.8 Bt bn 2018 2019 2020 2021 2022 1H23 Profit before income tax expense Income tax expense Net profit (loss) Statements of Financial Position (Bt bn) Total Assets Total Liabilities Total Equities 86.6 87.4 87.1 Risk-Based Capital (RBC) Source: Muang Thai Life Assurance, data based on book value except for RBC 9.9 6.9 3.9 Total Premium 94.5 83.8 75.3 73.0 69.3 35.8 1.8 1.2 0.8 (after refund) 8.1 5.7 3.1 % Growth -8% -11% -10% -3% -5% 11% 2021 2022 1H23 2021 2022 1H23 607.5 625.0 632.1 ROE (%) 520.9 537.6 545.0 ROA (%) 10.2% 6.6% 7.6% 1.4% 0.9% 1.1% 359.7% 331.5% 362.5% บริการทุกระดับประทับใจ 102#52K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK MTL Investment Portfolio and Insurance Premium MTL Investment Portfolio: MTL Total Premium Fixed Income accounted for around 82% (bn) 90 83.8 75.3 80 73.0 69.3 Total Premium Growth MTL Industry Debenture 26.0% 70 60 57.9 (%YOY) 53.8 49.3 Stock 50 43.3 Y2019 -11% -3% 10.5% Note 3.2% 35.8 40 Y2020 -10% -2% 30 26.0 26.0 21.6 23.7 23.5 Gov & S/E Policy Loan Y2021 -3% 2% 20 3.4% 12.3 Bond Y2022 -5% 0% Unit Trust 10 52.6% 2.5% 0 T T 1H23 11% 4% Deposit 0.1% Mortgage 2019 2020 2021 2022 1H23 New Business Premium Renewal Year Premium ■Total Premium 100% Investment Property Loan 0.8% 0.6% Assets Under Management (AUM)* (30 Jun 23): Bt 593,160 bn MTL Total Premium by Products: Ordinary product accounted for around 85% in 1H23 80% 60% 40% 20% 0% 2019 Group 2020 Personal Accident *Remark: Invested Assets + Investment Property K 2021 ■Industrial 2022 Ordinary 1H23 Source: The Thai Life Assurance Association MTL Total Premium by Channels: Bancassurance accounted for about 51% in 1H23 100% 80% 60% 40% 20% 0% 2019 ■ Other 2020 ■Direct Marketing 2021 2022 1H23 ■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 103 104#53K 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 mtlMuang Thai Life Assurance Products²) Endowment Life Insurance 105 Pheu Sasom Sub 11/3 Guarantee Pay premium for only 3 years, but the coverage continues for 11 years ชำระเบี้ยประกันฝัน 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. 300% 200% 100% หยุดป่ะเบี้ยประกันภัย Stop premium payment รา 0 1 2 4 5 6 7 8 9 10 11 ณ พัชร Premium payment at the beginning of policy year End of policy year เป็นจ่ายสิน Cash bonus - - - - - - รับเงินจ่ายคืน 15% ณ สิ้นปีกรมธรรม์ ทุกๆ ปีกรมธรรม์ ยกเว้นในปีกรมธรรม์ที่ครบกำหนภิญญา = = = = = = Receive cash bonus at 3% at the end of policy years Except at the end of policy maturity สราญญา 309% 300 านวนเงินเอาประกันภัย 101 วนเบี้ยประกันภัยที่ได้ชำระไว้ Muang Thai Smart Linked Pro 10/1 (Global) Pay single premium, guarantees cash bonus every year and get an opportunity to receive upside gain from invest in global assets. End of Policy Year Premium Payment at the Beginning of Policy Year Cash Bonus 105% Life Coverage or cash surrender value at that time (whichever is higher) 00000 8910 1% 1% 1% 1% 1% 1% 1% 1% Maturity 1% Benefit Maturity 101% Dividend of any Maturity benefit is 309% of the initial sum insured or 101% of the paid premium, whichever is higher. (¹) Benefit and coverage are % of the initial sum insured. In case the benefit amount and coverage are stated incorrectly, the specified % shall apply. (2) The dividend shall be paid to the insured who is alive upon contract maturity only. However, the Company does not guarantee. maturity dividend. Term Life Insurance MRTA-Home (Mortgage Reducing Term Assurance) Example, in case the customers choose to insure their loan in full term and full coverage Loan Amount Sum insured amount Premium payment at the beginning of policy year The contract starts Policy Year Coverage Coverage of Pitaksin-Home is equivalent to the reducing sum insured amount • 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 - 5 years End of Policy Year Premium Payment Term of installment loan Term of insurance at the Beginning of Policy Year 10 12 14 15 Scenariol Early Redemption Remark: the above coverage is based on an assumption that the customer's credit repayment history is normal according to the Bank's loan contract 1) K-Bancassurance products are MTL's life insurance products selling through KBank 2) Muang Thai Life Assurance products are MTL's life insurance products selling through MTL sales agents, and/or other channels บริการทุกระดับประทับใจ 100%) Life Coverage Remark (1) Is in % of the initial sum insured. 15 Maturity 106#54K 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 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 เงินจ่าย บ 0 1 97 Cash bonus Age of 97 รับเงินจ่ายคืน 2-25% ของจํานวนเงินเอาประกันภัย ณ วันเริ่มมีผลคุ้มครองตามกรมธรรม์ ตั้งแต่ปีกรมธรรม์ที่ 1 - ครบอายุ 98 ปี บอย Antaining the age of 98 Artaining the age of 99 Receive cash bonus at 2.25% of the initial sum insured. from policy year 1 to attaining the age of 98 เงินครบสัญญา Maturity benefit 102.25% Elite Health Plus Rider Right Coverage Medical expense coverage for both OPO and PD which is paid by actual amount Comprehensive Coverage Standard single room at any hospital or special single room at 10,000-25,000 Baht per day Long-Term Health Coverage Insurable age is until the age of 90 with coverage period until the age of 99 Muang Thai Happy Return 99/7 Receive cash bonus every year and pay 7 years for coverage until attaining the age of 99 End of Pay Year Premium Payment at the Beginning of Paly Year Cash-Fam 100% Life Coverage or cash surrender value at that time or at of paid premium whichever is higher) Attaining the Age of 98 99 Tears 1% annual cash bonus from the end of policy year 1-staining the 100% (1) Is in % of the initial sum insured. (2) In case of being alive until contract maturity, the benefit is 100% of the initial sum insured or 101% of paid premium (whichever is higher). Rider D Health Plus Rider OPD Per Time Rider/and OPD MaoChai Rider Both Riders are not required to be purchased together with IPD coverage. Be Covered to the Max Lump sum benefit based on actual expense of 5 million Baht Standard single room in any hospital Plus Additional Coverage Maternity Plus.or Well-Being Plus that covers health checkup, vaccination, dental care, and eye care which meet all of your needs. Long-Term Health Care Entry age is up to 90 years old with long-term coverage until attaining the age of 99 OPD Per Time Rider OPD 500-3,000 THB per time per day. Up to 30 times per year. Complete Coverage OPD MaoChai Rider OPD 15,000 100,000 THB per year. Up to 2 times per day for second opinion. Including telemedicine, doctor fees, diagnosis charge, medical expenses, physical therapy fee, CT Scan and MRI diagnosis, or kidney dialysis. 1) K-Bancassurance products are MTL's life insurance products selling through KBank 2) Muang Thai Life Assurance products are MTL's life insurance products selling through MTL sales agents, and/or other channels บริการทุกระดับประทับใจ K KASIKORNTHAI KBank: Other Information ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 107 บริการทุกระดับประทับใจ 108#55K 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 August 15, 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 109 110#56K 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) ⚫ Dr. Pipatpong Poshyanonda (President) ⚫Mr. Chongrak Rattanapian (President) ⚫ Mr. Rungruang Sukkirdkijpiboon (President) Non-Executive Directors (7) ⚫ Ms. Sujitpan Lamsam • (Vice Chairperson) Sqn.Ldr. Nalinee Paiboon, M.D. (Chairperson of the Corporate Governance Committee) • Mr. Saravoot Yoovidhya • Mr. Kalin Sarasin (Chairman of the Risk Oversight Committee) • Mr. Sara Lamsam ⚫ Ms. Chonchanum Soonthornsaratoon (Legal Adviser) • Mr. Suroj Lamsam Independent Directors (6) ⚫ Ms. Kobkarn Wattanavrangkul (Chairperson of the Board) • Mr. Wiboon Khusakul ⚫ Ms. Suphajee Suthumpun (Chairperson of the Human Resources and Remuneration Committee) • Mr. Chanin Donavanik ⚫ Ms. Jainnisa Kuvinichkul Chakrabandhu Na Ayudhya ⚫ Ms. Kaisri Nuengsigkapian (Chairperson of the Audit Committee) Note: More information on the Board of Directors biographies can be found on our website at https://www.kasikornbank.com/EN/about/Pages/board-of-directors.aspx บริการทุกระดับประทับใจ 111 112#57K 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 113 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 114#58K 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 115 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 116#59K 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 117 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 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 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 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 บริการทุกระดับประทับใจ Work 118#60K 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 BOT, SEC, SET, Thai IOD, ASEAN CG Scorecard, and Dow Jones Sustainability Indices (DJSI) criteria ASEAN CORPORATE GOVERNANCE Implementing a strategic plan for CG activities to enhance compliance by directors, executives, and staff with CG principles, Code of Conduct, and Anti-Corruption Policy through Organizing training courses and continually communicating via e-Learning system Communicating with companies within KASIKORNBANK FINANCIAL CONGLOMERATE to ensure consistency of operations Reviewing the Statement of Business Conduct, the Code of Conduct, the Statement of CG Principles, CG Policy, and related Charters; keeping them up-to-date in accordance with Ongoing business operations and Bank Sustainability Compliance with laws, international practices, and best practices as prescribed by regulatory agencies and competent agencies • . 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 119 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 Directors 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 and monitoring sustainable development operations Sustainable Development Sub-committee . Considering and approving sustainable development frameworks and action plans . Considering and endorsing policies, goals, strategies, and targets related to sustainable development performance Overseeing and monitoring sustainable development operations 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 120#61K 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: 2022-1H23 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) ThaiBMA Top Underwriter Best Bond House - Deal of the Year - Most Innovative Deal - Corporate ESG Bond of the Year 1H23 HNWIS THE ASIAN BANKER - Best Retail Bank in Thailand COP Leadership Level (CDP A List) 2022 CLIMATE - Best Retail Bank - Thailand - Outstanding Interactive Chatbot Service by a Retail Bank 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 Dow Jones - Sustainability Award - DJSI Sustainability Indices World Index and DJSI Emerging Markets Index 86100 -the top 5% of the S&P Global ESG Score 2022 for the banking industry - Winner - Best Bank for PRIVATE BANKER ***Sustainability and ESG Leadership - Best Contact Center of the Year TCCTA IDC MORNINGSTAR Future Enterprise of the Year Best Fund House - Domestic Fixed Income (KAsset) Highly Commended- Best App for Customer Experience - Highly Commended- Best Content Marketing Program Highly Commended- Excellence in SME Banking - 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 Employee Experience RETAIL BANKER INTERNATIONAL GLOBAL FINANCE THE Asset * IFR ASIA INTERNATIONAL BUSINESS MAGAZINE ASIAMONEY BrandAge PшM a - Best Bond House in Thailand FinanceAsia - Best DCM House in Thailand - Most Recommended Retail Bank in Thailand Best Frictionless Customer Experience Initiative (YouTrip). - Best Mobile Banking Service (K PLUS) - BankQuality Ranking - Most Selected Main Bank in Thailand - Best Digital Credit Evaluation Initiative - Best Frictionless Customer Experience Initiative Highly Commended - Best Retail Bank - Thailand - Highly Commended - Best Mobile Wallet Initiative (YouTrip) Best Open Banking Initiative (K LINE) - Most Dynamic Third-Party Collaboration (K LINE) - Highly Commended - Best Loan Offering (K LINE) - Best Mobile Wallet Initiative (Highly Commended) The World's Best Trade Finance Providers 2023 BTS Group Holding's Baht 11 billion Multi-tranche Sustainability-linked Debentures - Project Finance House of the Year - Renewable Energy Deal of the Year - Rooftop Solar Transport Deal of the Year - Highway - Digital Private Bank of the Year ESG Bond: BTS Group's Baht 20 billion Sustainability-linked Bonds - Best Private Bank Thailand - Best for High Net Worth in Thailand - Thailand's Most Admired Brand: Mobile Banking - Best Private Bank for Building Client Communities, Asia mongoDB. -2023 MongoDB APAC Innovation Award - Customer Focused (MAKE by KBank) Resources Award in the category of Most Innovative and Sustainable Office Design THE DIGITAL BANKER 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 Best Private Bank for Digital Marketing & Communication, Asia - Best Retail Bank for Digital CX in Thailand - Outstanding Digital CX in FX Services (YouTrip) - Best Private Bank - Thailand Best Private Bank for Digital CX in Thailand REFINITIV บริการทุกระดับประทับใจ - Best THB Interest Rates Swap Contributor (Runner-up) - Best THB Local Cross Currency Contributor (Runner-up) 121 122#62LL 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 24,000 Bt Billion 21,672 22,274 22,345 24,000 souilu 20,301 | 20,000 17,004 17,765 18,869 19,358 20,936 21,880 22,793 22,822 20,000 30.8% 31.0% 16,843 17,707 18,463 19,178 EXIM 16,000 30.4% 30.2% 30.4% 16,000 29.9% 30.0% 29.9% 26.5% 26.7% 26.4% 26.7% 12,000 12,000 26.7% 26.8% 27.0% 26.8% 8,000 8,000 13 Commercial Banks* Bangkok Bank sumang-aine ธนาคารกสิกรไทย 4,000 70.1% 70.1% 70.0% 69.6% 69.8% 69.6% 69.2% 69.0% 4,000 73.3% 73.2% 73.0% 73.2% 73.5% 73.3% 73.6% 73.3% 0 2016 2017 2018 2019 2020 2021 2022 1H23 SFIs Commercial Banks. 2016 2017 2018 SFIs 2019 2020 2021 2022 1H23 Commercial Banks. Inow SCB tb O CIMB O LH BANK Standard Chartered S KIATHAKIN BANK ICBC *The integration of TMB Bank and Thanachartbank was completed in Jul-21. 123 I Net Loans Deposits Bt Billion 16,000 14,000 12,000 10,470 10,602 11,061 11,633 11,859 12,579 13,258 13,618 13,614 Bt Billion 18,000 10,000 - 8,000 22.8% 22.1% 11.3% 12.3% 22.7% 6,000 14.6% 15.0% 12.5% 15.0% 4,000 16.4% 18.1% 15.8% 22.8% 22.9% 12.9% 13.6% 15.1% 15.4% 15.7% 15.8% 11.2% 12.5% 12.6% 21.9% 10.0% 9.7% 9.6% 12.4% 12.3% 12.4% 12.8% 16.7% 16.7% 16.6% 16.4% Other 16,000 ttb 14,000 BAY 12,000 ■KBank10,000 14,472 15,032 15,658 15,495 Other 11,196 11,359 12,099 12,578 13,057 10.5% 12.0% 20.2% 20.6% 21.5% 21.5% 8.9% 8.9% 8.9% 11.7% 11.4% 11.7% 21.2% 20.6% 12.6% KTB 16.9% 18.1% 17.3% 17.3% ■BBL 16.4% 16.8% 16.4% 16.1% 15.5% 15.1% 15.3% 15.4% 15.2% SCB 2,000 8,000 6,000 4,000 9.4% 9.7% 10.9% 11.3% 11.9% 11.9% ttb BAY ■KBank I I 16.2% 17.4% 17.1% 17.2% 15.3% 15.8% 15.5% 15.8% 15.8% 17.0% 17.4% 16.6% 16.7% 19.1% 17.4% 17.1% 16.2% 16.5% ■KTB ■BBL 18.2% 18.6% 18.6% 18.0% 17.7% 17.2% 17.7% 17.3% 17.3% SCB 16.8% 17.5% 17.5% 17.4% 16.8% 16.9% 16.3% 16... 16.3% 2,000 0 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 1H23 0 2015 2016 2017 2018 2019 2020 2021 2022 1H23 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 124#63K 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) 154.5% Penetration Mobile Internet 1) (Mobile internet numbers) 56.1% 82.5% Penetration Penetration Broadband Internet 2) (No. of households using internet Social Media ³) (No. of Facebook users) Thailand e-Payment Volume: 10.8 bn transactions, +30.0% YoY Value: 183.4 trn baht, +11.5% YoY 4) (Volume and Value) via broadband) Prompt Pay พร้อมเพย์ 78.5 m Million 161.6% Penetration 48.7% Penetration PromptPay 5) (Total registration) Mobile Banking 5) (No. of accounts) Internet Banking 5) (No. of accounts) 209.2% 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 Mar-23, 2) As of Dec-22, 3) Apr-23, 4) Jan-Apr 23, 5) As of May-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 125 126#64K 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 June 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 Up to Bt15mn Up to Bt10mn Up to Bt5mn Up to Bt1mn 11 August 2021, onwards Deposits Less than Bt1mn More than Bt1mn, but less than Bt10mn # of Accounts 123,147,230 1,806,771 % Amount (Bt mn) 98.43 3,361,558 1.44 4,436,997 More than Bt10mn, but less than Bt25mn 103,744 0.08 1,545,463 More than Bt25mn, but less than Bt50mn More than Bt50mn 31,545 0.03 1,103,083 25,628 0.02 Total 125,114,918 100 5,293,112 15,740,213 % 21.36 28.19 9.82 7.01 33.63 100 Source: Deposit Protection Agency (DPA), the Bank of Thailand, KBank and KResearch บริการทุกระดับประทับใจ * According to the BOT announcement in the Royal Gazette, per the authority of the emergency decree dated April 7, 2020, financial institutions are required to pay 0.23% of the average deposit amount, B/Es, debt instrument (excluding the amount counted as capital), borrowings, and securities transactions under repurchase agreements, during January 2020 to December 2022 127 128#65K KASIKORNTHAI Regulations Update Capital (Basel III) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Pillar2: BOT revised Pillar2 regulation to enhance risk management and capital adequacy assessment as well as emphasize ESG risk management. The revision become effective from 1 Jan 2022 onwards ■BCBS finalized new requirements on risk weighted asset (RWA) calculations including credit risk, operational risk, and CVA risk. The main objectives of the revision are to reduce variability in RWA across banks and jurisdictions and to balance simplicity and risk sensitivity of capital requirements Guidelines for supervision of financial groups of commercial banks related to digital asset business ■Remove the investment ceiling (3% of the capital of Thai banks) for FinTech business, as commercial banks have more experience investing in FinTech business, and regulators have guidelines to manage risks ■Allow subsidiaries of Thai banks to invest in companies related to Digital Assets (DA) business not greater than 3% of their capital, limiting new risks; DA companies with good governance, supervision of risks, and protection of customers are exempted from this investment ceiling ■Capital treatment: full deduction of DA holding exposure to CET1 Financial Sector Master Plan III (FSMP III) 22 Mar 2016: Cabinet approved FSMP III (2016-2020), with aims to establish strategic framework for continuous financial sector development and ensure challenges arising from the changing environment will be effectively managed Overall: FSMP III comprises four main initiatives: 1) Promote electronic financial and payment services as well as enhance efficiency of Thai financial system; 2) Support regional trade and investment linkages; 3) Promote financial access; and 4) Develop relevant infrastructure 1Q17: BOT adopted the 'regulatory sandbox' which allowed regulatory flexibilities to be granted to financial institutions and FinTech companies to experiment with FinTech businesses with plans to grant a new license for P2P lending players or digital personal loan operators As of June-2023, BOT granted licenses for 9 digital personal loan operators ➤Impacts on Thai banks: Move toward further liberalization and digitalization, along with enhanced competition from FinTech and non-bank companies ➤Impacts on KBank: Ability to maintain competitiveness over both existing and new players, helped by an effective customer-centric strategy and preparation for a changing environment Thai and International Financial Reporting Standards (TFRSS / IFRSS) ■Year 2022 onwards: Timeframe was specified by Thailand Federation of Accounting Professions (TFAC); TFRS 9 (Financial Instruments) has been effective since 2020 with the amendment for IBOR reform during 2020-2022. TFRS 17 (Insurance Contracts) will be effective in 2025 ➤ Expected impacts on Thai banks: New benchmark rate of IBOR reform is treated as repriced rate in TFRS9 EIR calculation, hedge accounting and valuation. Existing hedge strategies can be continued with day1 impact in PL or OCI depending on classification. TFRS 17 will delay revenue recognition over coverage period; previous revenue in retained earning will be reclassified to liability on transition. ➤ Expected impacts on KBank: For TFRS 9, impacts from IBOR reform are limited while TFRS 17 impact is still under investigation. Note: D-SIBS = Domestic Systemically Important Banks CVA Credit Valuation Adjustment, Source: The Bank of Thailand and KResearch บริการทุกระดับประทับใจ 129 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 130#66K 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 KASIKORN BANK 2022 2025 TAS 21: Effects of Changes in Foreign Exchange Rates Translate 'Functional Currency' to 'Presentation Currency' TFRS 8: Operating Segments Disclose operating results for each key segment TFRS 13: Fair value TFRS 4: Insurance Contracts Measurement Clear required factors and disclosure about fair valuation ➤ Measure insurance liability based on cash flow estimation ➤ Additional disclosure regarding risk exposure TFRS 16 (Leases) A single, on-balance sheet accounting model for lessee that is similar to current finance lease accounting. TFRS 9, TFRS 7 & TAS 32: Financial Instruments ➤ Impairment is based on 3-stage classification and introduce lifetime forward-looking concept. However, no significant impact to Thai banks as adopted new BOT provisioning rule since December 2006 ➤ Unquoted equities at cost to be faired value and not able to realize capital gain/loss in profit and loss if they are faired valued through OCI ➤ Interest revenue of lending portfolio will be recognized per effective interest rate ➤ Investment in property fund, REIT, infrastructure fund and infrastructure trust established in Thailand will be classified as equity instrument. (Refer to announcement from TFAC dated 25 June 2020) TFRS 17: Insurance Contracts Insurance revenue will be based on margin, not gross premium received Expected day one loss is immediately realized while expected gain is deferred over coverage period TFRS 9 Amendments from Interest Rate Reform ➤ Replacement of IBOR with new benchmark rate is considered as continuation of existing contract and/or hedge strategies. ➤Changing rate is reflected in new EIR or hedge ineffectiveness. Note: TAS = Thai Accounting Standard; TFRS = Thai Financial Reporting Standard; TFRIC = Thai Financial Reporting Interpretations Committee OCI Other Comprehensive Income Customer loyalty program concept of income deferral for reward credit has been adopted through IFRS15 since 2019 with no significant impact. No specific accounting guideline for digital assets has been enforced; but encourage to apply from existing relevant TFRS depends on terms and condition of digital assets. * Only financial and disclosure impact to Thai Banks บริการทุกระดับประทับใจ 132 131#67K 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 133 134#68K 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 KASIKORNTHAI Public Debt to GDP and Fiscal Budget Public Debt ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Budget Disbursement Rate 135 million 11,000 10,000 9,000 8,000 7,000 6,000 Jan-17 May-17 Sep-17 -18 Public Debt (Ihs) % to GDP (rhs) Oct-22 Feb-23 Jun-23 ■Public debt to GDP ratio rose to 61.7% in July 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) (%) % 70 100 65 59 90 80 60 70 89.8 83.5 76.4 67.7 59.9 55 55 60 53.1 45.3 50 37.7 50 50 40 30.0 FY 2023 22.7 30 45 15.0 -FY 2022 20 40 10 10 ⚫FY 2021 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY23 Budget - Investment Budget Bt0.66trn FY23 target Bt3.18trn (100%) Bt2.53trn (100%) Bt0.65trn 11M FY23 actual Unused FY23 Budget Bt2.86rn (90%) Bt0.32rn (10%) (100%) Bt2.43trn (96%) Bt0.42rn (64%) Bt0.10trn (4%) Bt0.23trn (36%) Total Budget Bt3.18trn - General Budget Bt2.52trn ■Government budget disbursement rate for 11MFY2023 is 89.8%, up 2.4% from 87.4% in 11MFY2022 บริการทุกระดับประทับใจ 136#69K 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) 137 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) 138#70K 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 Measures Household Assistance Energy Prices 39 37 25 19 222222 Details Train/Bus/Skytrain and Subway Fares: Bt750 monthly allowance for welfare card holders to use for public transportation Necessity Goods: A Bt300 grant per month in welfare card to purchase necessity goods, products intended for education and farming materials from all Blue Flag shops Cooking Gas: A Bt80 discount per three months in welfare card to purchasing cooking gas Allowances (e-Money): Depending on measure, which can be withdrawed from an ATM, such as Elderly welfare allowance (Bt50-100) and Disable allowance (Bt200) Water and electricity price: Reduce water and electricity bills and refund meter fees Diesel Fuel: ➤ Not Extend Bt5 per litre excise tax cut for diesel since July 21, 2023 Decreased retail diesel price to Bt32.0 per liter ➤ NGV and LPG Price: ➤ Household sector: increased LPG price cap to Bt423/per 15-kilo canister (Effective March 2023) ➤ FT Rate: Fuel Adjustment Tariff (FT) Rate for electricity is set to decrease to Bt0.9119 (during May to August 2023) and Bt0.6689 (during September to December 2023) Jan-10 Sep-10- May-11 -12- Sep-12- May-13 Jan-14 Sep-14- May-15 Jan-16 Sep-16 May-17 Jan-18 Sep-18- May-19- Jan-20 Sep-20 Value-added-tax (VAT) Rate Retail Diesel Price May-21 Jan-22- Sep-22 May-23- Source: The Census and Economic Information Center (CEIC), Electricity Generating Authority of Thailand (EGAT), newspapers complied by KResearch บริการทุกระดับประทับใจ On August 24, 2021, the Government announced the following VAT Rates: ■Maintain the 7% value-added-tax (VAT) rate until September 30, 2023 140 139#71K 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 5.Dual-truck railways 20% 6.Marine transport 2% 7.Others 1% 1.High speed rails 29% For 2023, public infrastructure investment is estimated to be B164bn or 1.0% higher than 2022* 4.Motorway & Roads 16% 3.Air- transport 27% Project Detail (Expected disbursement in 2023) High-speed Rails (Bt47.6bn) Motorway & Roads (Bt26.2bn) Bangkok and Mass-Transit system(Bt8.2bn) Dual-Track Railways (Bt32.8bn) 2.Bangkok & Mass-transit system 5% Air Transport (Bt44.3bn) Marine Transport (B3.3bn) Expected in 2023 Total projects Number of projects 18 Total disbursement Bt164bn Source: Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022 master plan) and estimated by KResearch (August 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 141 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 August 2023 บริการทุกระดับประทับใจ 142#72K 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 70% in progress 2024 92% in progress 2025 54% in progress 2028 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) 2028 21% in progress Bangkok-Rayong (3 Airports) 2029 Mass - transit system and commuter rail lines Pink line (Khae Rai-Min Buri) 2023 96% in progress Purple line (Tao Poon-Racha Burana) 2027 13% 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 84% in progress MabKabao Jira Junction 2026 52% in progress Prachuap Khin Khan- Chumphon.. Khae Rai-Min Buri Dual-Track Train Prachuap Khiri Khan - Choom Porn 2023 97% in progress Mass-Transit System and Commuter Train Ban Pai-Nakorn Panom 2026 Den Chai-Chiang Rai 2028 1% in progress High Speed Train Airport Motorway Air transport Suvarnabhumi Airport 3rd runway 2023 72% in progress U-Tapao Airport 2027 Single Rail Transfer Operator Intermodal Facility Marine transport Laem Chabang Phase 3 2025 6% in progress 2026 53% in progress Source Ministry of Transport and KResearch (January 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 TOR Process + Land reclamation 2023 Red line (Taling Chan - Salaya) TOR Process + Land reclamation 2023 Expect to open bidding by 1H23 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 143 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 1H23 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 (as of August 2023) Notes: Some projects are expected to be delay due to COVID-19 situation 144#73K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Eastern Economic Corridor (EEC) - Three eastern provinces: Chachoengsao, Chon Buri, and Rayong ■ Objectives: To facilitate and attract investment in innovative target industries aimed at achieving "Thailand 4.0", an innovation driven society (the 12 industries are Next-Generation Automotive, Smart Electronics, Medical and Wellness Tourism, Food for the Future, Robotics, Aviation, Agriculture & Biotechnology, Biofuels & Bio Chemicals, Digital, Medical, Defense, and Education & Human Resource Development) ■ Key Development Plan: An expansion of existing transportation facilities, plus new investment in logistics systems to transform the EEC area (13,266 square kilometer) into a regional center for trade, investment, and tourism ■Investment: 1) Approved Investment: Bt2.0 trn (2018-2022) from (1) BOI's approved projects (private sector investment) Bt1,250 bn (2) infrastructure investment under Public Private Partnership (PPP) Bt661 bn and (3) government investment from integrated budgeting Bt95 bn. 2) Investment Framework in Infrastructure: Bt337 bn (2023 - 2027) from (1) government investment Bt178 bn and (2) private investment and under Public Private Partnership (PPP) Bt159 bn. ■Investment Incentives: EEC privileges corporate income tax (CIT) exemption of up to 13 years and additional 50% CIT reduction for up to five years for some projects; 15-year CIT exemption for qualified projects under Thailand Competitive Fund (R&D investment); a flat tax rate of 17% personal income tax (PIT) for experts/specialists; long-term land leases (up to 99 Years) Four Core Areas - 15 Crucial Investment Projects* A A Chachoengsao chonburi Rayong 00000600 U-Tapao airport and aircraft maintenance Sattahip commercial seaport Laem Chabang port phase#3 Map Ta Phut port phase #3 High-speed rail-east route Double-track railway ++++ Highways and motorway Next-generation automotive (EV/AV) Aviation industry, Robotics, Smart electronics Advanced petrochemical and Bioeconomy Medical hub 12 Tourism Global Business Hub / Free Economic Zone New Cities, Inclusive growth 15 Public Utilities Approved Investment Amount (Bt2.0 trillion 2018-2022) Approved infranstructure investment under PPP Bt 661 bn O Source: The Board of Investment of Thailand (BOI), and The Eastern Economic Corridor Office of Thailand (EECO) presentation and KResearch projected (as of August 2023) บริการทุกระดับประทับใจ Government's approved investment Bt 95 bn BOI's approved investment Bt 1,250 bn 145 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 U-Tapao Airport and Aviation City Bt290bn Royal Thai Navy Jun 2020 Asia Era One Co., Ltd (CP led consortium consisting of CP, Italian Thai, CH. Karnchang, China Railway Construction Corp) U Tapao International Aviation Co., LTD (Bangkok Airways led Consortium consisting of Bangkok Airways, BTS, Sino-Thai) After the forming of the new-elected government 2029 2H23 2027 U-Tapao MRO Bt8.4bn Royal Thai Navy TBC (Maintenance, Repair Overhaul) To Launch Term of References (TOR) for bidding in June 2022 2025 GPC Nov 2021 (Gulf Energy Development Pcl + PTT Tank Terminal China Habour) 4Q23 (F Dock) 2025 (for F1 Dock) Laem Chabang seaport (3rd Phase) Bt114bn Port Authority of Thailand 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 August 2023 บริการทุกระดับประทับใจ 146#74K KASIKORNTHAI Thailand Economic Figures บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Currency and Interest Rate Outlook (as of 27 September 2023) USD/THB: End Period 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 BOT's 1-Day Repurchase rate 5.00 2.25 2.00 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 1.50 1.25 4.25-4.50 1.25 5.25-5.50 2.50 29 0.00 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23F 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22F 4Q23F USDT HB ■ Baht weakened to Bt35.00 per USD with USD resurgence and Thai internal factors ■ However, at 2023 year-end, Baht could reach Bt33.50-34.00 per USD, as the Thai economy continues to recover, thanks to strong support from tourism recovery ■Fed hiked 25bps in July to 5.25-5.50% after a pause in June with a neutral tone depending on data Fed's interest rate at the end of 2023 expected to be 5.25-5.50% as Fed's hawkish tone fades ■ BOT's interest rate would be near neutral with a data-dependent method, while inflation continues to drop below BOT's target range for 3 consecutive months ■ BOT's interest rate expected to remain at 2.50% year end 2023 Note: F is estimated by KBank Capital Markets Research (as of September 27, 2023) บริการทุกระดับประทับใจ 147 148#75K KASIKORNTHAI Monthly Economic Conditions: July 2023 2022 Units: YoY %, or indicated otherwise Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Private Consumption Index (PCI) 8.5 14.9 17.4 11.7 6.5 6.9 2.4 4.8 4.8 6.7 7.9 7.0 6.5 7.3 Non-durables Index 2.1 7.4 7.9 5.5 2.8 2.8 0.3 2.3 3.6 2.1 1.9 4.0 3.1 2.0 Durables Index 7.4 13.6 41.5 10.4 2.6 0.3 -5.6 0.4 4.3 3.0 1.3 7.9 4.2 2.9 Service Index Passenger Car Sales Motorcycle Sales 22.9 32.81 36.8 28.9 24.7 23.0 19.9 22.7 24.2 28.2 24.0 19.1 17.3 17.8 10.6 19.8 58.4 28.2 2.8 -11.6 -2.0 -9.6 -22.8 -26.3 -24.4 -21.3 -31.4 -29.0 12.0 28.4 76.9 9.5 1.5 3.4 -13.5 -1.3 15.0 9.0 11.6 23.7 25.6 14.4 Private Investment Index (PII) 2.7 3.2 9.3 4.3 -0.7 -2.2 -5.0 -1.6 0.2 0.7 -2.5 2.7 -1.6 1.4 Construction Material Sales Index 3.3 16.9 10.9 2.5 4.1 11.1 -3.6 -1.1 0.2 1.8 -7.6 2.6 -2.7 1.9 Domestic Machinery Sales at constant prices 8.6 13.8 27.8 12.6 3.7 3.0 0.2 0.3 3.8 5.4 0.4 3.7 -3.7 -4.8 Imports of Capital Goods at constant prices -2.7 -5.6 0.8 -0.8 -5.1 -9.2 -13.5 -4.5 -2.6 -1.1 -3.9 11.6 5.4 10.1 Newly Registered Motor Vehicles for Investment 8.6 5.9 34.6 23.8 -4.0 -10.1 -8.5 -14.7 -10.7 -17.7 -17.8 -16.5 -20.0 -10.5 Manufacturing Production Index 0.4 6.0 14.6 2.9 -4.2 -5.4 -8.4 -4.8 -2.4 -3.9 -8.7 -3.0 -5.0 -4.4 Capacity Utilization 62.8 63.3 64.9 63.8 60.5 60.1 60.0 60.4 61.5 60.8 58.7 59.8 59.8 60.6 Agricultural Production Index 0.9 -0.8 -3.1 -0.5 -0.5 1.8 2.8 3.5 6.5 2.3 7.3 -5.5 1.0 2.7 Agricultural Price Index 11.6 18.1 23.3 19.0 18.4 13.3 7.5 1.6 4.3 -8.8 -7.4 -2.6 -6.0 -3.7 Tourist arrival growth 2506.6 6125.0 7679.7 10598.0 7178.2 1816.0 872.0 1501.9 1283.3 953.0 643.9 286.2 191.5 119.5 Exports (Custom basis) 5.5 4.3 7.5 7.8 -4.4 -6.0 -14.6 -4.5 -4.7 -4.2 -7.6 -4.6 -6.4 -6.2 Price 4.2 4.7 4.6 4.0 3.2 3.0 3.2 3.0 2.1 0.9 0.9 0.2 -0.4 0.5 Volume 1.3 -1.3 3.7 4.5 -6.3 -7.8 -14.2 -6.3 -6.0 -6.5 -5.8 -6.1 -5.5 -5.9 Imports (Custom basis) 13.6 23.9 21.2 15.6 -2.1 5.6 -11.9 5.5 1.1 -7.1 -7.3 -3.4 -10.3 -11.1 Price 13.0 19.7 18.3 15.8 13.0 12.1 12.4 8.8 5.2 0.5 1.8 -1.6 -3.5 -1.8 Volume 2.0 7.3 6.0 4.2 -7.7 -2.2 -19.0 2. -3.2 -6.1 -5.3 -0.3 -6.0 -10.4 Trade Balance ($ millions) (Custom basis) -16.123 -3,661 -4,215 -853 -596 -1,342 -1,034 -4,650 -1,113 2,719 -1,472 -1.849 58 -1,978 Current Account ($ millions) -16,942.4 -4,035.7 -3,578.6 -217.5 350.6 -713.7 794.7 -1,978.3 1,034.0 4,413.3 -581.3 -2,766.1 1,448.8 -444.9 Headline CPI 6.08 7.61 7.86 6.41 5.98 5.55 5.89 5.02 3.79 2.83 2.67 0.53 0.23 0.38 Core CPI 2.51 2.99 3.15 3.12 3.17 3.22 3.23 3.04 1.93 1.75 1.66 1.55 1.32 0.86 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■In July 2023, Private consumption and private investment increased MoM, in line with Thai economic recovery ■Manufacturing and agricultural production improved, due to an increase in domestic demand ■Thai exports contracted more than expected, amid global economic slowdown, while trade balance registered a deficit in this month ■Headline inflation slightly increased, due to increasing oil prices, while core inflation gradually decelerated 149 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KR Household Economic Condition Index (KR-ECI) ■ In July 2023, KR-ECI increased to 36.0 from 35.0 in June 2023, given fading concerns of Thai households. This reflected across all components of the index amid Thailand's continuous economic recovery driven by tourism sector. Nevertheless, 3-month Expected KR-ECI remained stable at 38.8 as uncertainties in Thai economy remained high KR Household Economic Condition Index (KR-ECI) Components of 3-month Expected KR-ECI KR-ECI 50.0 48.0 40.0 44.0 42.0 40.0 38.01 36.0 34.0 32.0 30.0 KR Household Economic Condition Index (KR-ECI) --3-month Expected KR-ECI Current KR-ECI Jul-19 61-100 22 02-10 Oct-20 38.0 CC 38.8. 36.0 35.0 Household savings Household income and employment Household debt Household expenses excluding debt Prices of consumer goods Source: KResearch ■■Jul-23 Jun-23 35.1 33.8 3-month Expected KR-ECI 39.8 39.9 46.6 49.2 46.4 49.3 44.4 49.9 42.1 49.4 21.1 22.6 20.1 22.9 30.4 29.8 28.6 28.6 Jul-23 Jun-23 0 10 20 20 30 40 50 0 10 20 30 40 50 60 Source: KResearch Notes: The KR Household Economic Condition Index (KR-ECI) has been devised by KResearch to monitor household sentiment towards economic conditions at the current level and over the next three months. Any reading above 50 reflects positive sentiment and below 50 negative sentiment. - Research sample includes households in Bangkok and Metropolitan Area (BMA). - KR-ECI consists of household savings, household income, household debt, household expenses excluding debt, and prices of consumer goods. บริการทุกระดับประทับใจ 150#76WOW% % YoY of MPI K KASIKORNTHAI Economic Condition Highlights: July 2023 Jul23 MPI and CAPU increased MoM, in line with higher private consumption particularly in non-durable goods 30.0 20.0 10.0 0.0 m -10.0 -20.0 -30.0 60.865.0 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2Q23 all property indicators were still in negative territory, whereas construction areas permitted decreased less than previous quarter ཙཱིཏྟི ༡༧ཡིན ༤, 75.0 400% 300% 200% 55.0 100% W-4.4 0% M -0.05 -0.15 45.0 1Q09 1010 1011 1012 1Q13 1Q14 1015 1016 1017 1018 1019 1Q20 1Q21 1Q22 1Q23 -0.49 -100% 35.0 -200% Construction areas permitted Nationwide Condominium Registration Nationwide New Housing registered in BKK and Vicinity Jan-17 Oct-17 Jul-18 Apr-19 Jan-20 Oct-20 Jul-20 Apr-22 Jan-23 -MPI (Ihs) -%Capacity Utilization (rhs) Jul23 Headline inflation slightly increased, due to higher energy prices 2Q23 Price of housing category remained flat, while land price showed improvement but was still under the pre-COVID level 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -20 3.00 2.00 1.00 0.00 0.86 -1.00 20.0 10.0 0.38 : ال 0.0 -3.00 -4.00 -5.00 -10.0 21 21 22 22 22 23 23 Core CPI (MbMihs Core CPI (YoYehs) 1Q09 4009 3Q10 2011 1012 4Q12 3013 2014 1015 4Q15 3Q16 2017 1Q18 4Q18 3019 2020 1021 4021 3Q22 2023 Single House (With Land) Townhouse (With Land) Land Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- Sep- Jan-May- 17 17 17 18 18 18 19 19 19 20 20 20 21 HeadlineCPI(MdM-hs) HeadlineC PI(YoY-rts) Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ K KASIKORNTHAI Economic Condition Highlights: July 2023 Jul23 CCI dropped for the first time after rising for 14 consecutive months, likewise BSI continue to decline, amidst political uncertainty ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Jul23 Private consumption and investment picked up, but demand in durable goods continued to decline CCI SEOKRESEAR 35 30 3.6 33 3.3 1.1 55.6 49.3 35 30 TITTI ៩៩៦៩៣88888 BSI 60% 40% % YoY 20% 7.3% 1.4% 1.9% 10.1% 2.0% 2.9% 17.8% 0% -20% -10.5% -40% -60% PCI PPI Registered Construction Motor Vehicles Materials Import of Capital Goods Consumer's Consumer's Consumer's Non Durable Durable ■2Q23 ■7M23 ■ Jun-23 ■Jul-23 Service Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Consumer Confidence Index (CCI) Business Sentiment Index (BSI) Jul23 Foreign tourist arrivals continuously rebounded, especially in the ■4Q22 ■1Q23 Jul23 Exports contracted more than expected, due to the sagging demand from main trading partners Million Person Russian market 50.0 2507% 100% Export Value (USD Million) 20.4% 40.0 8.9% 9.4% 7.3% 4.2% 381% 32,000 50% 28,000 30.0 20.0 29.9 -83.2% 120% 0% 24,000 10.0 0.0 32.5 35.6 -93.6% 38.2 -50% 20,000 39.8 16.000 2 -100% 12,000 -150% 8,000 2015 2016 2017 2018 2019 2020 2021 2022 7M23 Jul23 No of Foreign Tourist Arrival --% Tourist Arrival YoY (RHS) 4,000 0 Jan-17 Sep-17 May-18 Jan-19 Sep-19 May-20 Exports Exports excluding gold Jan-21 Exports % YoY Sep-21 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE) บริการทุกระดับประทับใจ May-22 % YoY 60 50 40 30 20 -6.2% 10 0 -10 -20 -5.3% -30 -40 Jan-23 - Exports excluding gold % YoY 152 151#77K KASIKORNTHAI Exports and Imports: 7M23 Exports by Country ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Imports by Country Others 19% CLMV 9.5% Middle East 10% China 24% Taiwan 5% U.S.A. 7% CLMV 5.4% Japan EU 11% 7% ASEAN 17% Others 34.5% ASEAN 19.1% China 10.1% Middle East 3.2% Hong Kong 3.0% Australia EU Japan 3.2% 6.4% 7.2% U.S.A. 13.3% Top 10 Exports by Product (Customs Basis) Top 10 Imports by Product (Customs Basis) 7M23 7M23 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight % YoY Total Exports, 163,313 100.0% -5.5% Total Imports, USD Millions 171,598 Weight %YoY 100.0% -4.7% Motor cars, parts and accessories 17,032 10.4% 8.7% Crude oil 20,665 12.0% -6.4% Automatic data processing machines and 10,037 6.1% -16.2% Machinery and parts 12,548 7.3% 2.9% parts thereof Electrical machinery and parts 11,935 7.0% 1.5% Precious stones and jewelry 8,318 5.1% -15.3% Rubber products 7,851 4.8% -6.4% Electronic integrated circuits 11,355 6.6% 2.6% Electronic integrated circuits 5,467 3.4% 1.5% Chemicals 10,876 6.3% -15.3% Polymers of ethylene, propylene, etc in Iron, steel and products 8,105 4.7% -20.7% 5,234 3.2% -23.4% primary Natural gas 7,178 4.2% -0.8% Refine fuels 4,953 3.2% -20.7% Other metal ores, metal waste scrap, and product 6,737 3.9% -22.1% Machinery and parts thereof. 5,224 3.0% -4.5% Vegetables and vegetable products 6,567 3.8% 19.2% Fresh, frozen and dried fruit 4,875 3.0% 16.8% Jewellery including silver bars and gold 6,475 3.8% -26.0% Chemical products 4,795 2.9% -19.7% 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% 8.2% 9.7% 8.2% 11.3% 5.3% 5.2% 5.0% 6.2% 7.2% 6.7% 7.3% 5.4% 11.1% 11.4% 11.2% 12.7% 14.8% 15.4% 6.0% 16.6% 5.9% 15.8% 13.4% 14.5% 14.2% 14.1% 13.4% 11.4% 9.5% 9.3% 9.9% 10.0% 9.8% 9.2% 8.6% 11.0% 12.5% 12.0% 11.8% 12.9% 13.7% 12.0% 21.6% 20.0% 20.1% 21.3% 24.2% 24.9% 23.4% 8.5% 8.3% 8.3% 8.0% 7.6% 8.0% 7.9% 10.3% 10.6% 11.6% 11.2% 10.5% 10.3% 10.9% 8.3% 8.0% 7.8% 7.8% 7.5% 6.8% 6.0% 4.9% 4.8% 4.9% 5.7% 6.0% 5.2% 5.3% 15.1% 14.6% 15.5% 14.4% 13.4% 13.7% 14.2% 13.9% 13.8% 13.4% 13.3% 13.0% 11.9% 12.2% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 ■ASEAN 5 CLMV EU China Japan USA Hongkong Middle East others ASEAN 5 CLMV EU China ■Japan ■USA ■Middle East others 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 153 154#78% 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 6M23 35% 2018 2019 2020 2021 2022 6M23 25% 15% 5% 25% 5% 12.6% -5% -7.5% -15% 5% -2.4% -1.3% 3.7% -3.6% -5.4% -5% -13.3% -25% -15% וויור -0.1% -2.0% -8.6% י זיו -3.5% ASEAN-5 CLMV EU China Japan USA Total Export ASEAN-5 CLMV EU China Japan USA Total Imports 2022 6M23 2022 6M23 Value Value Value Value Exports Imports (Million USD) Share Share (Million (Million Share (Million Share USD) USD) USD) ASEAN-5 40,743 14.19% 19,939 14.1% ASEAN-5 37,046 12.2% 17,431 11.8% CLMV 31,147 10.9% 13,662 9.6% CLMV 15,954 5.3% 8,109 5.5% EU 22,794 7.9% 11,203 7.9% EU 18,244 6.0% 10,224 6.9% China 34,390 12.0% 17,765 12.6% China 71,014 23.4% 35,075 23.8% Japan 24,669 8.6% 12,516 8.9% Japan 34,584 11.4% 16,193 10.9% USA 47,527 16.6% 23,128 16.4% USA 18,026 5.9% 9,787 6.6% Total 287,068 100.00% 141,170 100.00% Total 303,191 100.00% 147,478 100.00% 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 ■Ongoing geopolitical risks ■ Unfavorable weather condition ■THB volatility ■High dependence on China's market ■Changing demand in electronic products and loss of competitiveness in some areas (e.g. HDD) ■High crop surplus among competitors ■Electronics and Electrical Appliances (Structural Challenge) ■Fishery and Agriculture Products (US SIMP) ■Steel and Aluminum (US tariffs and CBAM), Washing machine (US tariffs) ■Plastic, ICs, Machinery and Electrical Equipment (US-China trade dispute) ■ Extending products to catch up with changing consumer trends ■ Enhancing practices to comply with international standards ■Setting up export promotion board ■Providing supports to help individuals gain skills and qualifications relevant to the needs of the labour market ■Negotiating FTA and regional trade agreements ■Relocating factories to GSP eligible countries ■Promoting BOI privileges granting merit based on competitiveness enhancements Enhancing productivity Note: HDD = Hard Disk Drive; IUU fishing = Illegal Unreported and Unregulated fishing; FTA = Free Trade Area; GSP = Generalized System of Preferences; BOI = the Board of Investment of Thailand Source: KResearch (as of January 2023) บริการทุกระดับประทับใจ 156 155#79Million 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 31.0 textiles paper and paper products rubber and plastics products 42.6 basic metals motor vehicles, trailers and semi-trailers Other manufacturing 45.5 46.3 47.5 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 1H23 2022 2021 54.6 54.8 73.2 69.0 Investment Value (Bn) 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 1H23 364.4 Investment value of BOI-approved applications (by Industry)* 150,000 130,000 110,000 90,000 70,000 50,000 18,211.0 30,000 14,408.0 10,000 -10,000 Agricultural Food and Biotechnology Medical 38,932.0 Machine and Automative Electrical Appliances and Electronics 1H23 107,688.0 22,244.0 Mineral and Materials 25,963,0 9,926.0 10,765.0 5,003.0 13,053.0 Chemical Petrochemical and Plastic Public Utilities Digital Source: The Bank of Thailand (BOT), The Ministry of Commerce (MOC), and Office of Industrial Economics (OIE) Source: The Board of Investment of Thailand (BOI) Note: *Figures above indicate investments of approved projects requesting investment promotion benefits from BOI ** BOI announced new activities & privileges promotion (effective in 2023) บริการทุกระดับประทับใจ K KASIKORNTHAI Tourism ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thailand's tourism receipts will progressively increase in 2023, reaching 61% of the 2019 level %Tourism Revenue to GDP 20.0% 18.2% 17.7% 15.0% 11.6% 11.3% 10.0% 6.6% 6.4% 5.7% 5.0% 0.0% 2018 5.2% 3.0% 2.2% 2.2% 3.6% 1.6% 2.1% 2019 2020 2021p0 0.6% 2022e 2023f % Foreign tourism revenue to GDP % Tourism tourism revenue to GDP % Domestic tourism revenue to GDP 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 10.8% 6.5% 4.3% In 2023, KResearch projects the number of foreign tourists coming to Thailand may reach 27.6 million, or around 69 percent of the 2019 level Meanwhile, domestic travel is expected to report steady growth. Preliminarily KResearch projects Thais will make around 170.0 million domestic trips in 2023 Tourism Revenue (Bt bn) 170.0 200 3,500 150.8 2,947 2,994 3,000 150 2,500 1,940 27.6 1,876 1,912 997 100 2,000 1,500 ,071 ,082 793 352 633 1,170 770 50 1,000 319 474 500 254 98 364 0 2018 2019 2020 2021r 2022e 2023f ■Foreign Tourism Revenue Domestic Tourism Revenue ■Total Revenue บริการทุกระดับประทับใจ 158 Creative Industries High Value Service 157 **#8020 -30 2006 51 2007 2009 2010 2011 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 1,000 Units 250 200 196 146 161 178 151 159 182 174 197 206 197 195 175 163 166 150 100 2014 Demand Side: Transferred Properties in BMR* 2016 Supply Side: New Housing Completions and New Projects Launched in BMR* 1,000 Units ■New Housing Completions New Projects Launched 170 131133 120 20 117 124 111 125 14 114 119 102 132 108 133 127 81 - 118 107 92 115 112 66 101 70 60.5 2020 2021 2022 5M2022 35 40.5 33.7 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Property Market: New project launching decreased in the first 5 months of 2023, compared to the high base in the last year 5M2023 2017 2018 2019 2020 Household Borrowing to GDP Old Definition New Definition % of NGDP 100 882 80 60 K KASIKORNTHAI Household Borrowing % of Loans 25 94.2 94.7 91.4 90.6 84.4 84.0 82.7 84.1 20 19.39 76.1 9.4 9.7 59.3 8.8 7.5 7.6 8.3 13.4 13.3 12.0 12.7 12.3 12.2 40 28.9 10.6 22.3 23.1 23.1 22.3 22.3 10.5 10.5 12.8 12.7 25.3 25.3 24.4 24.2 15 10 5 24.4 19.6 18.9 20 7.7 11.2 15.1 24.5 29.5 33.5 33.7 33.5 34.3 38.4 38.7 36.4 35.9 0 11.9 13.2 13.9 0 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 67.5 66.2 2021 2022 5M2022 5M2023 ■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: Compared to the high base in the previous year, the number of new housing projects launched in 5M23 fell by 16.8% YoY. ■Demand Side: Due to a decline in demand, property sales fell by 1.9% during the 5M23 period. Later in 2023, cautious home purchases might be made as a result of the unstable economy, high household debt levels, and rising mortgage loan rates. ■Mortgage NPLs among Thai commercial banks was at 3.16% in 1Q23, compared to 3.01 in 2022, 3.52%. Outstanding Mortgage Loans to Individuals and Property Developers to GDP % of GDP 30 26.7 25 20 16.8 15 10.4 10 4.1 5 0 1993 1996 1999 2002 2005 2008 2011 2014 -Loans to Property Developers 2017 2020 1H23 Housing Loans % NPL for Consumption Loans of Thai Commercial Banks ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 159 Commercial Banks Non-Bank Fls 1994 1996 1997 2010 2012 2014 2016 2018 2019 2020 2021 2022 1Q23 Saving Cooperatives --Total SFIs Others 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 Debt Service Ratio of Thai households Cross-Country Comparison of Household Debt (as of 2022) % of GDP % 50 117.8 108.2 40 86.9 81.2 27.9 28.1 27.2 28.4 29.1 27.0 66.4 61.9 30 23.0 56.1 20 Australia South Korea Thailand Malaysia US China Source: CEIC and KResearch Singapore 10 0 IIII 2009 2011 2013 2015 2017 2019 2021 Source: NSO and KResearch 2.68 2001 2004 2007 2010 2013 2016 2019 2022 1Q23 Household debt to GDP stayed at 90.6% in 1Q23, and is expected to remain high in 2023 ■Household borrowing to GDP is higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■Thailand's household debt to GDP is comparable to other countries*; debt service ratio of Thai households is still well below 40%, indicating the household debt situation is unlikely to trigger any problems in the foreseeable future ■NPL ratio for consumption loans of commercial banks rose to 2.68% in 1Q23 from 2.62% in 4Q22. Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ 160#81K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT's Directional Papers on Sustainable Resolutions of Household Debts 1 Existing NPLs (esp. those related to COVID-19) Accelerate Troubled Debt Restructuring or TDR (SFIs, non- bank and banks) Debt counselling services from creditors Debt mediators Voluntary bankruptcy/ rehabilitation filing by debtors made possible 1 Jan 2024 Responsible Lending Issue regulations to ensure responsible lending at all stages of indebtedness Encourage creditors to provide guidelines to assist borrowers, such as debt restructuring, especially existing NPLs 2 Hard-to- solve/persistent debts Starting with persistent debts from express/speedy cash and elderly customers Helping debtors to make practical debt repayment plans 1 Apr 2024 Persistent Debt: PD (Opt-In basis) General PD borrowers are those indebted consecutively for 3 years, borrowers will be urged to make larger monthly payments. Severe PD borrowers are indebted consecutively for 5 years. Participant in the scheme could be able to exit debt cycle within 5 years with interest rates not exceeding 15% per year Source: BOT, as of 14 February 2023 and 21 July 2023 3 Fast debt creation with high default risks Being agri-related debts, credit cards and personal loans Responsible lending (e.g. restriction on product PR, fair contracts, control of debt purposes) Upcoming additional Debt Service Ratio or DSR and LTV ratios to ensure debtors' daily- life survival Risk-based pricing Promote responsible borrowing through literacy Effective date . 1 Jan 2025 Debt-service ratio (DSR), effective timeline depending on economic situation monthly income below Bt30,000: monthly payment for existing and new loans cannot exceed 60% of monthly income monthly income above Bt30,000: monthly payment for existing and new loans cannot exceed 70% of monthly income บริการทุกระดับประทับใจ 4 . . • . Other debts not yet being included in household debts Such debts include Student Loans, other cooperatives or Co-Op (Bt0.7trn; 4.3% of GDP) and loan shark Open data to promote financial inclusion (e.g., water and electricity bill info) Risk-based pricing 2Q25 at the earliest Risk-based pricing (RBP) Submit plans in 1Q24 Be tested in sandbox in 2Q24 Regulatory sandbox (1-2 years) K KASIKORNTHAI BOT's Responsible Lending framework and Timeline Responsible Lending framework ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Intended outcome: Responsible and fair credit service providers throughout the period of indebtedness (end-to-end process) Before/About to go into debt During debt Becoming troubled debt Selling debt Responsible Lending guideline should be implemented under appropriate management Nudge: Financial Literacy and discipline Advertisement Product offering Product development Considering affordability Q3 2023 Q4 Q1 Information Commitment tools Resolving persistent debt Debt restructuring and troubled debt restructuring Incentive Litigation and debt transferring Timeline (Tentative) 2024 Q2 Q3 Q4 2025 Q1 Q2 Responsible Lending (beginning on January 1, 2024) Borrowers with minimum monthly income of Bt20,000 Banks Non-banks Consultation paper and public hearing Release regulations Borrowers with minimum monthly income of Bt10,000* *Impact will be considered in order to further adjust conditions within one year. Risk-based pricing (RBP): 1Q24: RBP Plan proposed by Financial institutions; 2H24: Open the Regulatory sandbox (1-2 years) Debt-service ratio (DSR), depending on the economic situation บริการทุกระดับประทับใจ 161 162#82K KASIKORNTHAI BOT Macro Prudential Policy ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions LTV Criteria for Mortgage Loans (Effective: January 1, 2023) New (Including Top-up loans) Criteria for Credit Card / Personal Loans (Effective: September 1, 2017) Credit Cards Lending Criteria Price and Type of Properties 1st Contract NEW 2nd Contract 3rd Contract Onwards New Min.Monthly Income Bt15,000 Old Bt15,000 Personal Loans New Old LTV Limit LTV Limit LTV Limit House ≤ 100%* 80-90% 70% < Bt10mn Condo. ≤ 100%* 80-90% 70% Credit Line (times of average monthly income) Income Credit Line Credit Line <Bt30,000 ≤1.5 times Income < Bt30,000 ≥ Bt10mn House & Condo. < Bt50,000 ≤ 3 times > Bt50,000 ≤ 5 times ≤ 5 times >Bt30,000 Credit Line ≤ 1.5 times ≤ 3 institutions ≤ 5 times Credit Line ≤ 5 times ≤ 90% 80% 70% 1) Under the new framework, LTV limit will be capped at 100% for the first contract of housing loans, and * loans for furniture and decorations can be added up to 10% of collaterals (old - no these conditions) 2) Prior to October 20, 2021, for the second contact, LTV limit is 80% if the first contract's installment payments are less than two years (old - three years); otherwise, LTV limit is 90% 3) Risk weight is 35% if LTV does not exceed its LTV limit; while the risk weight will increase to 75% for the loans for furniture and decorations of the first contract Notes: August 15, 2019: BOT relaxed the LTV rules for co-signers that have no ownership interest in the home being purchased April 2019: BOT tightened LTV criteria for mortgage loans, and raised down payment for the second contract onwards. Year 2009: BOT announced revised criteria in 2009-2010 on mortgage loan risk weights with a different effective date Year 2008: Risk weights for mortgage loans dropped from 50% to 35% under Basel II Criteria for Car Loans ■ Auto Registration Loans (Effective: February 1, 2019): Auto registration loan providers to be approved by Bank of Thailand and Ministry of Finance Regulated by Fiscal Policy Office Picofinance* Regulated by the BOT Pico Plus* Capital Fund Credit Line Interest Rate Ceiling > Bt5mn Bt50,000 ≤ 36% > Bt10 mn > Bt50 mn < Bt100,00 36% for first Bt50,000 Depends on debt-servicing ability ≤24% <28% for the amount in excess of Bt50,000 ≤24% Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province บริการทุกระดับประทับใจ 163 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thailand's external balances remain relatively strong compared to peers International reserves / Imports (Import Coverage) Low foreign holding ratio in Thai government bonds Months of Imports % 12 9.9 9.1 25 6 8.0 7.9 7.2 7.5 6.8 15 0 India Indonesia Philippines 22.7 18.6 20 15.5 15 3 months 10 5 Korea Malaysia Thailand Singapore 0 Indonesia Source: CEIC, KResearch (data as of June 2023) International reserves / External debts (% Ratio) % 120 100 81.6 80 60 40 32.7 20 0 India 73.1 60.4 39.9 111.0 100% iaml. 16.7 Indonesia Philippines Korea Malaysia Thailand Singapore Source: CEIC, KResearch (data as of December 2022) South Korea Malaysia 12.3 1.9 Philippines Thailand 0.4 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 164#83Billion Baht Billion Baht 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 FX Reserves % BOT Policy Rate Fed Funds Rate -Lower Bound 6.00 Fed Funds Rate -Upper Bound 5.00 4.00 3.00 2.00 Net Forward Position $ Billion $ Billion ■3 months of imports Reserves backing banknotes ■ST external debt 300 300 $245.8 bn $251.9 bn 250 250 200 200 73.9 150 216.6 220.8 150 $223.92 Billion 68.4 100 100 50 50 81.6 1.00 0.00 0 29.2 2022-end 31.1 0 July 2023 Source: BOT and KResearch Last Update: August 10, 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 August 2023) Excess liquid assets in Thai commercial banks slightly fell Million Baht 5,000,000 ■Due to high inflationary pressures, the Fed decided to raised its policy rate to 5.25-5.50% in July 2023 ■Monetary easing leads to a massive exodus of capital from 4,000,000 emerging markets and worsens exchange rate depreciation in 2022. However, Thailand's external stability will likely be 3,000,000 maintained ■The Thai banking system excess liquidity fell slightly. The CAR was good (19.02% as of June 2023) and NPL ratio was still manageable (2.68% as of 1Q23), with net profits of Bt123.1 billion in 1H23 %LCR 191.9 190.2 187.7 183.5 184.7 183.8 176.9 178.1 173.8 2,000,000 2016 2017 2018 2019 Liquid Assets 2020 2021 2022 1Q23 2Q23 -LCR (%) Note: BOT has imposed the Liquidity Coverage Ratio (LCR) Framework which replaces the maintenance 6% reserve requirement. Regarding the LCR framework, all banks shall maintain high-quality liquid assets not less than net expected cash outflow over the next 30 days. The LCR was implemented on January 1, 2016, with the minimum requirement set at 60%, rising in equal annual steps of 10 percentage points to reach 100% on January 1, 2020 บริการทุกระดับประทับใจ K KASIKORNTHAI Other Figures Thai Bond Market Size (Gov't and Private bonds) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Bond Yields 18,000 100 88.8 91.0 90.9 91.8 16,000 14,000 63.3 64.4 64.8 69.4 69.6 70.2 72.9 74.5 73.6 78.1 78.7 12,000 10,000 53.9 52.4 8,000 6,000 4,000 2,000 0 × ៩ ៩ ៩ ៖ 8 8 3 8 8 គឺ 90 % 3.5 3.0 2.5 2.1 2.2 2.3 2.3 2.4 2.4 2.4 2.5 2.5 2.6 2.6 .8 % to GDP 2.0 1.5 1.0 0.5 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) 6M 1Y -*-Dec 19 2Y 3Y 4Y -Dec 20 -⚫ Dec 21 5Y 6Y 7Y 8Y 9Y --Dec 22 10Y 15Y Aug 10, 2023 1,200 1,000 Foreign Holdings of Thai Bonds 800 600 4.0% 5.9% 400 -1.0% 1.5% 1.1% 200 49 76 0 2007 2009 2011 8.3% 8.4% 2013 Current Account and FX Reserve USD Billion 50,000 USD216.6 bn (2022-end) USD Billion 300,000 10% 8.2% 7.9% 7.4% 7.1% 6.9% 6.9% 8% 6.0% 6.4% 6.1% 6.3% 6% 4% 2015 2017 2019 % of Thai Bond Market (RHS) 2021 0% Jul-23 % of Total Bond Outstanding 40,000 250,000 30,000 200,000 20,000 150,000 10,000 100,000 0 -10,000 50,000 USD-14.7 bn (2022-end) -20,000 0 1993 1997 2001 2005 2009 2013 2017 2021 Foreign Holding Outstanding (LHS) Source: BOT and ThaiBMA บริการทุกระดับประทับใจ Current Account (LHS) --FX Reserves (RHS) 166 165#84K KASIKORNTHAI Other Figures Million Baht Housing Loans / GDP Million Baht 600,000 500,000 400,000 % to GDP 300,000 5,000,000 26.6 27.3 26.9 26.7 26.7 30 200,000 100,000 4,000,000 22.0 22.3 22.3 22.6 23.2 25 21.0 0 19.4 17.7 17.4 18.0 18.3 20 3,000,000 20 2009 15 2,000,000 1,000,000 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 0 2009 --% Housing Loans to GDP (RHS) 4,172,556 4,410,235 4,666,198 4,702,217 4,755,808 15 10 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Credit Card Loans/GDP % of GDP 3.5 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 2.6 2.6 3.0 2.5 2.0 1.5 261,553 318,141 333,493 360,096 394,123 418,747 457,090 449,733 458,181 482,966 456,783 461,284 1.0 0.5 0.0 2012 2015 2018 2021 1H23 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 2015 2012 Housing Loans for Personal Consumption (LHS) 2018 2021 1H23 600,000 2.2 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) 300,000 Source: BOT, NESDC K KASIKORNTHAI Other Figures Loans to GDP as of 2022 United States Thailand South Korea Japan Malaysia Singapore China 0 50 69.9 88.9 100.7 102.9 108.5 126.4 100 150 1.7 1.9 2.1 2.3 2.4 2.3 2.3 2.3 2.3 % to GDP 4.4 4.4 4.5 3.7 3.9 3.4 0 2009 2012 2015 Personal Loan Outstanding (LHS) 2018 2021 1H23 -% Personal Loans to GDP (RHS) Note: 1) Personal Loans represent outstanding personal loans under supervision (including commercial banks and non-banks, excluding SFIs, saving cooperatives and others financial Institution) บริการทุกระดับประทับใจ 167 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Thai Banks' Loan Growth and NPL Ratio 15 15.23 12 3.89 9 2.94 6 3 2.44 2.31 2.31 12.0 14.6 13.9 10.6 4.8 6.2 2.4 4.6 5.8 2.3 5.6 6.4 2.7 1.3. 2.69 2.99 3.08 3.09 3.14 3.25 3.12 2.86 2.82 0 % of GDP 176.8 -0.7 -3 0 2009 2011 2013 % YoY Loan Growth 2015 2017 2019 -% Gross NPL Ratio 2021 1Q23 200 Note: Data on China, Korea and Japan include loans from commercial banks as well as financial institutions, the rest include loans only from commercial banks Credit Card Statistics Note % YoY Net loans represent growth of net loans in 18 Thai commercial banks from C.B.1.1 Latest data for % Gross NPL is at 3.04% as of 2Q22. GDP Per Capita Baht % YoY 21.1 25 19.9 250,000 11.3 20 12.8 12.7 15 11.1 9.7 10.2 10 5 5.8 14.3 11.0 9.5 7.2 6.0 6.7 4.8 8.0 9.4 6.2 9.2 8.7 200,000 4.0 -1.1 5.4 2.4 150,000 0 -5 11.6 100,000 -10 -15 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 50,000 Credit Card Loan Growth Spending Growth 147,364 163,956 170,467 0 Note: The credit card statistics number includes foreign bank and non-bank credit cards Source: BOT, NESDC, NSO, CEIC Data, and KResearch บริการทุกระดับประทับใจ 8.6 3.9 1.8 3.2 185,159 192,327 195,807 202,151 213,586 5.7 5.4 5.2 225,095 236,861 % YoY 20 20 7.2 10 2.9 3.0 0 -7.5 -10 243,705 225,311 231,986 248,635 -20 -30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 GDP Per Capita --% YoY 168#85K KASIKORNTHAI Other Figures Million Person Population and Labor force ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Unemployment Rate % of Labor Force 70 2.50 60 54.0 54.5 55.0 54.8 55.2 55.6 56.0 56.3 56.6 56.8 57.1 58.6 58.9 1.93 2.00 1.69 50 1.50 1.32 40 1.50 1.18 30 38.5 39.9 1.04 1.00 20 0.68 0.66 0.72 0.84 0.88 0.99 1.05 0.98 0.89 10 0.50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 ■Population (Age>= 15 years) Labour Force 0.00 2009 2011 2013 2015 2017 2019 2021 1H23 Foreign Direct Investment Foreign Direct Investment Position by Countries Trillion Baht % YoY 100% 10 15.2 13.9 8 7.5 6 19.5 10.5 8.9 4.7 -1.3 -1.7 -0.4 5 13.4 4 2 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 LSCOGSFUN 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 1.9 1.6 1.7 17.0 16.1 16.0 16.0 3.8 20% 2.3 2.0 14.8 14.0 2.9 14.7 3.5 13.2 12.9 13.3 14.2 -10 18.2 17.1 17.6 16.3 16.1 16.7 15.5 17.5 19.5 20.2 21.7 -15 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FDI Position (LHS) % YoY (RHS) ■China 2021 2022 Others Note: 2012 2013 2014 2015 2016 2017 2018 2019 2020 ASEAN ■ EU ■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 K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK For Further Enquiries, Contact KASIKORNBANK Investor Relations: Chief Investor Relations Officer Investor Relations Team Tel (66) 2470 2673 to 4 Tel (66) 2470 6900 to 1 IR Website Tel (66) 2470 2660 to 1 Email: [email protected] www.kasikornbank.com → Investor Relations Disclosure Practice: ■Unreviewed/unaudited quarterly financial reports are released within 21 days from the end of each period ■Reviewed financial reports are released within 45 days from the end of the period for 1Q and 3Q; Audited financial reports are released within 2 months from the end of the period for 2Q and 4Q ■Following KASIKORNBANK's Disclosure Policy and good governance practice, KBank maintains a "silent period" for 7 days prior to the unreviewed/unaudited earnings announcement. During this period, the Bank refrains from replying to questions or commenting on the earnings announcement and arranging one-on-one or group meetings with analysts and investors บริการทุกระดับประทับใจ 169 170#86K KASIKORNTHAI DISCLAIMER: Bank of Sustainability EVCAR ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK This document is intended to provide material information relating to investments or products in discussion and as a reference during the discussion, presentation, or seminar only. It does not represent or constitute any advice, offer, contract, recommendation, or solicitation and should not be relied upon as such. In preparation of this document, KASIKORNBANK PUBLIC COMPANY LIMITED ("KBank") has made several crucial assumptions and relied on financial and other information available from public sources as of the date of this document. Therefore, KBank assumes no responsibility or liability and makes no representations or warrants with respect to the accuracy and/or completeness of the information described herein. Before making their own independent decision to make any investment or enter into any transaction, the recipient of this information ("Recipient") shall carefully review information relating to services or products of KBank, including but not limited to economic and market situations and other factors pertaining to the transaction as posted on KBank's website at URL www.kasikornbank.com and in other sources, and make their own investigation on all other information, documents prepared by other institutions, as well as consult with Recipients' financial, legal, or tax advisors on each decision. The Recipient understands and acknowledges that the investment or execution of the transaction may be a transaction with low liquidity and KBank shall assume no liability for any loss, damage, or expense of any nature incurred by the Recipient arising out of such investment or execution of the transaction. The Recipient also understands and acknowledges that the information so provided by KBank does not represent the expected yield or consideration to be received by the Recipient arising out of the investment or the execution of the transaction. Further, the Recipient should be aware that the transaction can be highly risky as markets are unpredictable and uncertain, and there may be inadequate regulations and safeguards available to the Recipient. KBank reserves the right to amend, either in whole or in part, the information so provided herein at any time as it deems fit, and the Recipient acknowledges and agrees with such amendments, accordingly. For any inquiry, or in the case of making a complaint, the Recipient may seek further information from KBank at [email protected], +(662) 470 6900 to 01, +(662) 470 2660 to 61, or +(662) 470 2673 to 74. * The information herewith represents data in the Bank's consolidated financial statements, some of the numbers and ratios are calculated before netting with KBank's non-controlling interest. บริการทุกระดับประทับใจ 171 K KASIKORNTHAI บริการทุกระดับประทับใจ