Forward23+ Investor Presentation

Dato’ Abdul Rahman Ahmad

16 October 2020 FORWARD Together Analysis of [#] current situation We have a terrific legacy and successfully pivoted from our core IB origins into a large diversified regional

USD 1.1 bil P/B 1.0x

USD 146.1 mil USD 1.8 bil USD 0.8 bil USD 0.4 bil USD 0.4 bil USD 246.4 mil JV with CGC + Principal P/B 1.3x P/B 2.2x P/B 2.1x P/B 2.0x P/B 2.0x P/B 1.0x Presence in all 10 ASEAN Universal Expanded in Indonesia Indonesia RBS markets banking acquisition Launched CIMB Philippines

2018-19 2012 Today 2008 2009 5th Largest 2007 ASEAN by assets 2006 2nd Largest in 2005 Malaysia Malaysian Universal Universal Banking Operations in ASEAN Footprint 6th Largest in Bank MISTC Completed Indonesia

3 Our franchise today is a leader in ASEAN with a number of strengths

2005 2007 2014 2019 CAGR Strengths and Position Today

th 51 5 Largest ASEAN 47 Universal Bank by assets Market 37 Capitalisation 8.8% 2nd Largest in Malaysia (RM ‘bil) 16

6th Largest in Indonesia

ASEAN Markets (#) 2 2 8 10 High quality talent

Entrepreneurial and innovative culture Assets (RM ‘bil) 114 201 414 573 12.3% Strength of client relationships in wholesale Profitable consumer franchises

Source: Bloomberg, Annual Reports 4 Despite our strengths we lag behind our peers in terms of ROE…

2009 ROE (%) 2019 ROE (%)

1 BRI 35.2 1 Vietcom Bank 25.9 2 BCA 31.8 2 BRI 19.4 3 Vietcom Bank 25.6 3 BCA 18.0 4 Public Bank 26.1 4 Bank Mandiri 15.1 5 Bank Mandiri 22.1 5 BNI 14.0 6 BNI 16.3 6 Public Bank 13.6 7 15.5 7 DBS 13.2 1 8 CIMB 15.0 8 BDO Unibank 12.6 9 12.6 9 UOB 11.6 10 OCBC 12.2 10 OCBC 11.2 11 UOB 11.9 11 10.9 12 Bank 11.2 12 Siam Commercial Bank 10.4 13 BDO Unibank2 9.7 13 Kasikornbank 9.9 14 DBS 8.4 14 CIMB1 8.5 15 Maybank 3.1 15 8.5

1. Reported ROE; If normalised 9.3% 2. Return on average equity from annual reports 5 Source: Annual reports This has led to a significant decline in shareholder value

CIMB Adjusted 10-Year Share Price

RM7.0 15 October 2020 Share Price: RM3.05 RM6.0 Market Cap: RM30.27 bil

RM5.0

RM4.0 5 January 2011 Share Price: RM6.39 Market Cap: RM66.89 bil RM3.0

RM2.0 2010 2012 2014 2016 2018 2020

Movement (%) YTD 1Y 3Y 5Y

CIMB Total Shareholder Return (TSR) (39.4%) (36.1%) (45.5%) (23.6%) FBMKLCI Total Shareholder Return (3.1%) (0.5%) (5.0%) 3.5% (TSR)

Note: All data updated up to 15 October 2020

Source: Bloomberg 6 We have a number of challenges that we need to tackle

1 2 3 4

Portfolio allocation Cost Credit Management Customer We over-invest in low-return Our C/I ratio remains one of the Asset quality has been a Decline in Malaysia NPS business and under-invest in highest across ASEAN consistent challenge caused by higher return businesses recurring high provisions

5 6 7 8

Capital lockup Governance Complexity Technology Performance Culture High goodwill and intangible Multiple organisation overlaps Significant investments • Too focused on asset/revenue assets hinders efficiency required for stability, digitalization and not earnings driven & analytics • Lack of link between performance and reward

External disruption of COVID-19

7 To invest better to grow profitable businesses and fix underperforming areas

3-Year Average: Countries 3-Year Average: Regional Business Units

SME T&M Consumer

Malaysia

Cambodia Indonesia Targeted Targeted FY2019 Singapore (%) FY2019

RAROC (%) RAROC SMME RAROC RAROC

Business Corporate Thailand

GVP Vietnam and Philippines

RWA (RM'mil) RWA (RM'mil)

Over-investment in underperforming businesses and under-investment in well performing businesses

8 Our Cost/Income ratio remains significantly higher than average

CIR FY2019 benchmarks (%) CIR FY2019 by country (%) CIMB cost structure

Total cost of RM9.5 bil with a growth rate of 3% p.a. 34.4 CIMB Malaysia 51 3Y CAGR 40.5 Malaysia Average 45.9 Personnel 4% 41.1 Establishment (2%) 42.5 Marketing 11% 42.7 CIMB Niaga 49 Admin and General 6% 43.0 Indonesia Average 44.7 Total (BAU) 3% 43.7 Operating income 3.5% 44.6 CIMB Singapore 59 45.3 Personnel cost has remained high despite reduction in employees – average cost per employee is 45.7 Singapore Average 43.4 increasing 46.7 CIMB Group 2016 2019 3Y CAGR 49.7 CIMB Thai 68 Number of staff 40,446 36,197 (4.0%) Adjusted 53.4 beginning of year (#)

Reported 55.5 Thailand Average 49.3 Average p-cost per 121 161 10.0% staff (RM ‘000) Median = 43.7

Source: Annual reports 9 Asset quality has been a consistent challenge, with recurring elevated provisions ex-Malaysia Provisions (RM ‘bil) Credit cost: 3Y ave (2017-19) (bps)

Maybank 39 Public Bank 6 Malaysia RHB 21 CIMB 16 BCA 116 BRI 240 Indonesia Mandiri 188 2.4 2.4 CIMB 187 2.2 2.0 DBS 30 OCBC 21 1.4 Singapore UOB 21 CIMB 31 SCB 137 Bangkok Bank 127 Thailand KasikornBank 126 2016 2017 2018 2019 1H20 CIMB 119

Credit cost (bps) 70 70 40 55 132

Note: CIMB provisions are normalised

Source: Annual Reports 10 Addressing Technology Infrastructure

CIMB Clicks total uptime (scheduled, unscheduled & service degradation) 98.65% 98.24% 97.67%

95.96%

94.67%

2016 2017 2018 ~ 19% of2019 our critical systemsUp to June 2020 and substantial percentage of infrastructure has reached / are Key Focus Areas reaching end of life / end of support 1 2 3 Investments required to CIMB Clicks improving, but Innovate, strengthen digital update critical technology remains an issue presence and analytics infrastructure

11 On top of this, we are amidst a once in a lifetime crisis with Covid-19

United States, comparison of post-WWII recessions Significant uncertainty in outcomes % real GDP peak drop during crisis

Covid-19 Scenarios

Virus ‘81 ‘08 Global contained, Muted Slow, Inflation ‘73 Oil Financial growth world long-term • Virus contained, growth returns: recession shock Crisis returns recovery growth Expected GDP recovery in Q1 2021

• Muted world recovery: Virus resurgence; -2.6 -3.1 -4.0 slow long-term growth with expected GDP recovery in Q2 2023

-9.2 • Slow long-term growth: Virus resurgence -12.6 with expected GDP recovery beyond 2023

-16.2

Source: Bureau of economic analysis, Oxford Economics 12 Recalibrated [#] Strategic Plan Our ambition is to be a top-quartile bank in ASEAN in terms of ROE

2019 ROE (%) 2024 ROE (%)

19.4 Bank 1 18.0 Bank 2 Top 15.1 Bank 3 quartile banks 13.6 Bank 4 13.2 * Aim to: 11.6 Bank 5  Build a Great, High 11.2 Bank 6 Performing Sustainable 10.9 Bank 7 Business and Bank 8 10.4 Organisation 9.9 Bank 9  Become a Top 9.3 Bank 10 adjusted1 Quartile ASEAN 2.8 Bank 11 Bank 1H20 ROE reported

* Weighted average top quartile 1. 2019 financial results and ratios excludes MSS, FMC costs, and impairments / write off of intangible assets 14 Source: Annual Reports The path ahead builds upon the foundations of Forward23, incorporating a set of key guiding principles

When defining the path ahead we applied these guiding principles

. Forward23 as starting point; Refine not throw out

. Incorporate new normal

. Accept trade-offs

. Detailed and measureable performance metrics

. Collective ownership – aligning top down and bottom up resulting in clear accountability

. Turnaround mindset

15 Recalibrating our Forward23 Strategy

Vision To be the leading focused ASEAN bank Strategic Themes

1 Delivering a) Reshape portfolio b) Drive cost efficiency c) Digitise for value d) Focused investments Sustainable  Accelerate profitable  Reset cost base  Strengthen technology  Facilitate intra-ASEAN wholesale growth  Tighten expense  Digitise & automate front  Preferred & wealth Financial  Fix & turnaround management & back office  CASA, fee income and transaction Returns underperforming  Increase productivity  Focus on data & analytics banking businesses  Islamic Finance  Selective CIMB digital investments

2 Disciplined Execution 3 Customer Centricity 4 Transform Fundamentals  Performance culture  Strengthen reliability  Risk management  Simplify corporate, oversight &  Transform Customer journeys  Capital optimisation management structure  Treat customers Fairly  Finance & Compliance  Regional operating model 5 Purpose-driven a) Culture & Values b) Human capital c) Sustainability organisation

16 We have a clear view on where we will compete and how will we win

To be the leading focused ASEAN bank

Leading Focused ASEAN

We seek to be We will not be everything to everyone. We shall focus on key We are a local amongst the markets and segments, where we play to win ASEAN bank. leading ASEAN Where will we compete How will we win This identity banks (top resonates with Universal Bank: Across all segments 1 Lead the market on customer quartile) when experience and service for focused our staff and measured by Focused Universal Bank: Consumer and customer segments external financial metrics SME; high quality wholesale stakeholders. It 2 Stay competitive in providing value to such as ROE* and provides an customers by becoming more efficient CIR as well as ASEAN focus: ASEAN wholesale and element of Preferred; niche in commercial non-financial 3 Leveraging our ASEAN footprint as a differentiation metrics such as Focused player: ASEAN wholesale and differentiator where relevant and aspiration NPS, Preferred; niche in consumer finance 4 Investing in technology, digital and Organisational analytics to lead on service, Universal community focused bank Health and experience and value Sustainability Selective investments: Digital attacker 5 Being brilliant at the basics: end to leveraging on partnerships to create a end risk management, controls, hedge on future performance orientation

* Weighted average top quartile 17 Our portfolio needs to be reshaped

Malaysia Indonesia Singapore Thailand Cambodia Digital

SME/ Consumer Wealth Wealth SME/ TnG & Commercial & SME Management Management Commercial TNGD 1)1 Undertake stringent portfolio review Wealth Consumer T&M Consumer Consumer Philippines Management 2)2 Implementation of dynamic allocation framework Wealth Wealth T&M Corporate T&M Vietnam • Stronger growth vs Management Management market for performing Transaction Transaction Commercial Corporate1 Transaction businesses banking banking banking • Slower growth vs ASEAN market for Transaction T&M COBA transaction T&M businesses that banking banking need to be fixed

Corporate COMBA Consumer Commercial Corporate

1. Focused on ASEAN Double down Grow Fix and turnaround Exit Growth through partnership 18 Reshaping our portfolio will involve the following:

Accelerating growth Improving segments Focused investments in 1 2 3 in focus areas that require fixing growth areas

CASA Growth COBA and Intra-ASEAN Strengthen funding COMBA Wholesale base

NOII Growth Become a focused Preferred Improve cross-sell player in these customers/ markets Wealth

Selected Asset Selective Digital Transaction Growth and T&M investments banking

19 Tackling cost efficiency is non-negotiable

Levers Cost Trajectory

(RM ‘mil) Reset the cost base Cost BAU Take-out Escalation Digitise and automate 9,500 500 Cost Eliminate duplication, streamline structure Take-out and operating model

Increase productivity

Tight expense management

2019 2020 2021 2021-2024 2024

Source: Annual reports 20 Our fundamentals need to be transformed to support the franchise

Elements of digitise for value

Technology Stability/ Availability • Baselining completed with execution underway • Complete Bolster activities to improve resiliency • Develop Boost technology blueprint for advanced capabilities

Digitise • Strengthen digital for revenue generation • Digitise to transform customer journeys • Automate front to back office to improve productivity

Data & Analytics • Data led insights to better serve customers • Strengthen risk through analytics

21 Customer centricity can be a differentiator moving forward

What will we do? What should customers expect?

>99.95% uptime of digital Strengthen reliability channels

Transform customer journeys Market-leading turnaround time

Relevant, value adding and Understand customer needs deeply competitive products and services

Treat customers fairly Top quartile by NPS in focus segments

22 Our fundamentals need to be transformed to support the franchise

Elements of Fundamentals Transformation

Risk Management Holistic approach across client selection, underwriting, market risk, collections

Capital Optimisation Data driven and fact-based; rigorous and dynamic asset allocation

Finance Single source of truth; modern and automated

Compliance Enhance compliance culture across the organisation

23 We need to step up on disciplined execution

Elements of disciplined execution

Deliver what we promise consistently

Clear transparent accountability

Simpler performance management, KPIs (rigorous metrics and tracking)

Linking performance to rewards

24 Our journey will involve strengthening and creating a purpose driven organisation

Culture & Values Performance Integrity & Accountability Overall purpose Passion To build a high performing Human capital sustainable Best talent organisation to Better place to work help advance Sustainability customers and Embrace sustainable practices society Shape our role in society

25 Targets remain as previously committed in Forward23 but we will be more granular and clearly define both near term and longer term outcomes

2022 Objectives 2024 Targets Aspiration

1 Cost reduction 1 ROE Top Quartile* 1 Building a great sustainable Cost take out of RM800mil - RM1bil organisation

Winning in Malaysia 2a 2 CIR 45% 2 Top 2 Malaysian Banking Group by Top 2 bank in market share in focused ROE segments Winning in Indonesia 2b 3 CET 1 13% 3 Best performing ASEAN FI by market Grow 1.5x Market in focused segments cap growth Turnaround COBA and COMBA 4 NPS Top Quartile 2c Growing sustainable franchise in SG and TH 1 5 DJSI 75th Percentile Ranking 3 Performance Culture and Disciplined Execution 6 Talent High Performing Organisation

* Weighted average top quartile 1. Dow Jones Sustainability Index 26 ROE Trajectory

Top Quartile**

9.3%

2%-4%

2019 ROE 2020 ROE* Grow Assets Grow NOII Provisions Cost Capital 2024 ROE Judiciously Aggressively Improvement Reduction Management

*2020 ROE is based on FY20 guidance 27 ** Weighted average top quartile Final Remarks

Forward23+ is a recalibration of our existing strategy and is extended to 2024 due to Covid-19 disruption

Transiting from an asset growth to earnings growth model/plan

Forward23+ will be focused on getting CIMB’s ROE into the top quartile* in ASEAN

Committed to cost management to lower CIR from improved efficiency without compromising growth

Build a great sustainable organisation

* Weighted average top quartile 28 THANK YOU

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