Updated Economic Data)

KASIKORNBANK Investor Presentation as of 1Q21 (Updated Economic Data)

June 2021

For further information, please contact the Investor Relations Unit or visit our website at www.kasikornbank.com

KASIKORNBANK at a Glance  Established on June 8, 1945 with registered capital of Bt5mn (USD0.16mn)  Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of March 2021) Assets Bt3,767bn (USD120.2bn) Ranked #4 with 15.8% market share** Loans* Bt2,302bn (USD73.5bn) Ranked #3 with 16.8% market share** Deposits Bt2,401bn (USD76.6bn) Ranked #3 with 16.5% market share** CAR 18.44% *** ROE (1Q21) 9.57% **** ROA (1Q21) 1.14% Number of Branches 859 Number of E-Machine (ATM/RCM) 10,864 Number of K PLUS Users 15.0mn Number of Employees 19,511 Share Information SET Symbol KBANK, KBANK-F Share Capital: Authorized Bt30.2bn (USD1.0bn) Issued and Paid-up Bt23.7bn (USD0.8bn) Number of Shares 2.4bn shares Market Capitalization Bt344bn (USD10.9bn) Ranked #2 in Thai banking sector 1Q21 Avg. Share Price: KBANK Bt136.25 (USD4.35) KBANK-F Bt136.16 (USD4.34) EPS Bt4.35 (USD0.14) BVPS Bt184.22 (USD5.88) Notes: * Loans = Loans to customers less deferred revenue ** Assets, loans and deposits market share is based on C.B.1.1 (Monthly statement of assets and liabilities) of 14 Thai commercial banks as of March 2021 *** 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 **** 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 Exchange rate at the end of March 2021 (Mid Rate) was Bt31.34 per USD (Source: Bank of Thailand) 2 Table of Contents Topic Slide Page

 Operating Environment 5 - 6  2021 Financial Targets 7  The K-Strategy 8 - 9  Financial Performance 10 - 16  Capital and Dividend 17 - 18  Summary 19

 Appendix 20 - 160

Appendix Topic Slide Page  KBank  Strategy 21-44  Business Highlights 45-52  Risk and Credit Management 53-65  Financial Performance 66-83

• Y2021 Highlights 66-69 • Interest Income - net 70 • Non-interest Income 71 • Net Fee Income 72-73 • Other Operating Expenses 74 • Loan 75-76 • Asset Quality 77-79 • Investment in Securities and Funding Structure 80-83

 The Wholly-owned Subsidiaries 84-91  Muang Thai Life Assurance (MTL) 92-100  Other Information 101-110  Banking System and Regulations Update 111-119  Government Policy 120-137  Thai Economic Figures 138-158  IR Contact Information and Disclaimer 159-160

4 Operating Environment: Economic Outlook for 2021 Key GDP Forecasts and Assumptions

5.0 2.4 1.8 Key Points: 0.0  The projected base case for 2021 GDP growth ranges from

%YoY -5.0 0.0 to 2.4%, on condition that foreign tourist arrivals will number -10.0 -6.1 2019 2020 2021F around 0.25-1.2 million this year  However, uncertainties lie within the economic impact of the 2021F* new COVID-19 outbreak and vaccination progress 2021F* % YoY (Previous) 2019 2020  Improving export outlook and continued government stimulus Base measures will support economic recovery Range Base Case Range Case  GDP 2.4 -6.1 1.8 0.0-2.4 1.8 0.0-2.4 It may take at least 2 years, until 2023, for Thai GDP to return to its pre-COVID-19 level Private Consumption 4.5 -1.0 2.8 1.9-3.4 0.9 0.5-2.0 Government Consumption 1.4 0.8 3.0 2.5-3.5 3.0 2.5-3.5 Total Investment 2.2 -4.8 2.0 1.4-3.0 4.6 3.6-6.1 Risk Factors: - Private investment 2.8 -8.4 1.0 0.5-1.5 3.5 2.5-5.0  New COVID-19 outbreak and possible COVID variant - Public investment 0.2 5.7 6.1 5.1-8.4 8.5 7.5.10.0  Domestic distribution of COVID-19 vaccine Gov't Budget Deficit (% of GDP) -2.9 -5.1 -5.3 -5.0 to -5.4 -5.3 -5.0 to -5.4 Exports (Customs Basis) -2.7 -6.0 7.0 6.7-9.5 9.0 7.0-9.6  Thai Baht volatility Imports (Customs Basis) -4.7 -12.4 10.0 9.6-12 15.5 13.5-16.6  Trade tensions and geopolitical risks Current Account (USD bn) 38.2 16.5 5.9 2.9-7.5 1.0 -0.3 to -2.6 Headline Inflation 0.7 -0.9 1.1 0.8-1.5 1.2 0.8-1.5  Household and business balance sheet deterioration if outbreak Policy Interest Rate*** 1.25 0.50 0.50 0.50 lasts longer than expected Notes: MPC’s policy rate is at 0.50% (as of May 5, 2021) represents a higher base case assumption, comparing with the previous forecast, represents a lower base case assumption, comparing with the previous forecast Source: * KResearch (as of June 10, 2021 vs forecast on April 20, 2021) ** KBank Capital Markets Research (as of January 19, 2021)

Operating Environment: Economic Outlook for 2021 Outlook Possible Impacts to Thai Economy

 Global Economy  Global economy: Global recovery is expected to be uneven, due to progress on  Thai economy is still highly vulnerable to pandemic vaccination and the COVID-19 situation in each country situation abroad and at home  US: US economy will recover at a faster rate, due to the rapid pace of vaccinations  With slow progress on a COVID-19 vaccine, and fiscal stimulus program tourism sector will take years to return to  Eurozone: Europe’s economic recovery is expected to be slower than the US, due pre-COVID level to the COVID-19 resurgence and slow vaccine roll-out  China: Chinese economy is expected to rebound strongly, as domestic and external demand is picking up  ASEAN economies: ASEAN economies will likely see uneven economic revival, due to containment of COVID-19, political factors, and economic structure in each country

 Government Stimulus Plan  Government may roll out additional short-term stimulus packages at a large scale to  Supportive fiscal measures may help sustain offset economic impact caused by new COVID-19 outbreak domestic activities to some extent  Government investment projects may be delayed, due to potential shortage of capital goods amid disrupted global supply chain

 Inflation  Inflation is expected to increase to 1.1%, due to rising oil prices and recovery of  Monetary policy expected to remain domestic and global demand accommodative to economic growth throughout 2021

 Exports and Tourism  Thai exports will rebound strongly, with faster-than-expected global economic  Stronger than expected global economic recovery recovery provides an upside to Thai exports  Tourist arrivals are expected to return in 4Q21, on condition that almost half of Thai population is vaccinated and the COVID-19 situation in Thailand is under control

 Fed Policy Normalization  Fed would keep its ultra-monetary easing with Fed Funds rate of 0.00-0.25% and  BOT likely maintains its policy rate at 0.50% in its quantitative easing throughout the year, as the economy remains on a pace of 2021, due to fiscal relief measures and new debt recovery measures amid new wave of COVID-19

 Baht  Baht hit around Bt31.8 per USD in late-June, after uncertainty over the Fed’s QE  Despite an expected Baht appreciation, global trade tapering supported the USD sentiment in 1H21 will support Thai exporters’ revenue  However, Baht would appreciate and hit Bt30.50 per USD at the end of 2021, as  Meanwhile, BOT support is likely limited, as global economic recovery, more capital flows to Asia, and improving Thai current Thailand remains on the USTR’s watch list for account balance after border reopening currency manipulation Source: KResearch and KBank Capital Markets Research (as of June 21, 2021)

6 Y2021 Financial Targets Consolidated 2020 Actual 1Q21 Actual Y2021 Targets Note (Y2021)

1Q21 NIM declined YoY, mainly due to lower yield on loans from interest rate cut, deterioration of asset quality NIM 3.27% 3.16% 3.1-3.3% and loans in relief measures despite lower cost of deposit from savings rate cut.

2.56% YTD 1Q21 YTD loans grew mainly from SMEs (mainly from Loan Growth 12.13% YTD 4-6% COVID-19 relief measures), retail lending using data 12.69% YoY analytics capability, and corporate business.

Net Fee Income Low single digit 1Q21 net fee income increased 6.56% YoY and increased -10.17% 6.56% YoY 13.60% QoQ, mainly from fund management business Growth* growth rate and brokerage fee.

1Q21 cost to income decreased YoY mainly due to a Cost to Income managed expenses in economic slowdown; but cost to 45.19% 41.30% Mid-40s income will rise seasonally in 2H21. Ratio** Focus on cost management and productivity improvement, with new investments for future growth. Credit Cost per year Credit Cost: Maintain conservative assumptions and 205 bps 152 bps Up to 160 bps (bps) prudent financial policy amid high uncertainties related to COVID-19. Relief measure help limit short-term impact on asset quality; while, asset quality is closely monitored and NPL Ratio (Gross)*** 3.93% 3.93% 4.0-4.5% constantly reviewed. ROE**** 7.10% 9.57% N/A ROA 0.85% 1.14% 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

KASIKORNBANK Vision, Purpose and Culture

Vision BANK OF SUSTAINABILITY

“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”

Purpose To Empower Every Customer’s Life and Business Customer Total Solution Attentive & Inclusive Any Time & Any Where Trustworthy Promise

K-Culture A PIONEER FOR THE BETTER, A STEP AHEAD FOREVER

Customer at Heart | Agility | Collaboration | Innovativeness

8 The K-Strategy  K-Strategy is reimagined to drive growth and empower customer Purpose To Empower Every Customer’s Life and Business

Strong STRONG TRUSTWORTHY BRAND Brand

Growth Dominate Digital Reimagine Commercial Democratize Penetrate Strategy Payment & Consumer Lending Investment & Insurance Regional Market

Strengthen Harmonized Sales and Service Experience

Improve Value-Based Productivity

Key 8 TRANSFORMATION JOURNEYS Capabilities 1. Ecosystem Partnership 3. Proactive Risk & 4. Regional Payment & 2. Intelligent Lending & Harmonized Channel Compliance Management Settlement 7. Performing Talent and 8. Modern World Class 5. Data Analytics 6. Cyber Security Agile Organization Technology Capability

Relief Measures to Lessen COVID-19 Impact (Not Comparable to Loans by Business)  Relief measures (the government, the BOT, and KBank) have been offered to help customers through the COVID-19 pandemic.  Relief measures help limit short-term impact on asset quality; while, asset quality is closely monitored and constantly reviewed.

Total Loans Total Loans Exited Loans Loans Able to Pay Exited Bt2.2trn Relief Bt2.3trn Able to Pay Bt416bn or 96% Relief Programs Bt486bn or 94% Bt433bn Programs 19% of Bt516bn or 21% 14% of Total Loans Days Past Due (> 30 days) or 23% Bt17bn or 4% Total Loans Days Past Due (> 30 days) Bt30bn or 6% Retail Loans in Bt150bn Retail Relief Able to Pay Loans in Bt89bn Able to Pay Corporate Bt399bn or 93% Relief Bt287bn or 90% Programs Corporate Bt129bn Bt428bn Programs Bt94bn Bt319bn or 19% SME or 14% SME Bt149bn Days Past Due (> 30 days) Days Past Due (> 30 days) Bt29bn or 7% Bt136bn Bt32bn or 10% As of December 2020 As of March 2021

10 Composition of Growth: Loans by Business  Moderate loan growth momentum in line with full-year target Loan Portfolio Structure Loan Portfolio Bt bn ConsolidatedAmount (Bt bn) 1Q21 1Q21 Y2021 2,400 2,245 2,302 Dec 20 Mar 21 Loan Grow th Yield Range Loan Growth Target 1,803 1,914 2,002 2,000 36% 36% Corporate (%) (%) (%) 1,600 36% 34% Corporate Loans 814 822 1.0% 3-5% 1-3% 35% SME 1,200 SME Loans 733 757 3.3% 5-7% 2-4% 34% 33% 33% Retail 800 36% 35% Retail Loans 638 660 3.5% 5-7% 11-13% 28% Others 400 24% 25% 28% 28% Other Loans 60 63 4.2% 0 5% 4% 4% 3% 3% Total Loans 2,245 2,302 2.6% 4.6% 4-6% 2017 2018 2019 2020 1Q21 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. 1Q21 2021 Outlook

Corporate . Loan portfolio mainly grew from short-term lending of big deal loans . KBank continuously provides assistance to corporate customers who were directly and Loans indirectly affected by COVID-19 outbreak . Potential business growth in some sectors for business expansion . Domestic and global trade still uncertain; local government spending and public . Amid slow pace of global and local economy, the bank prudently investment remain major drivers. Lending growing organically and prudently while still SME supported customers’ liquidity needs, where appropriate meeting customers’ funding needs and aligning with government measures Loans . Major loan contribution to Construction and Commerce Consumer . Apply data analytics to enhance predictive model and credit process in order to lend industry intelligently with acceptable risk, via blended traditional and digital channels

. Retail loans grew mainly from home loans, expanding into high potential . Continuous growth supporting consumer market and local demand customers with product offerings matched to customers’ needs . Focus on lending thru data analytics and supporting financial solutions for all life . Offered “Smart PAY & Smart CASH via K PLUS” for credit card stages via assisted and unassisted channels where most relevant to customers’ Retail customers to better provide accessibility and convenience lifestyles and needs Loans . Offered new feature, "Swipe, Press, Pay by Installments in one card," for . Maintain lead market position in key strength products Xpress Cash. Customer enables QR code, scans option for cardless cash withdrawal at K-ATMs nationwide, and completes money transfer free of . Focus on new potential target customers with acceptable risk; predictive monitoring charge 24/7 via KPLUS and strict control on loan portfolio quality

Loan Definition Retail Loans: Loans of KBank and KBank’s Subsidiaries in Retail Segments Corporate Loans: Loans of KBank and KBank’s Subsidiaries in Corporate Segments (annual sales turnover > Bt400mn) Other Loans: Loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans) SME Loans: Loans of KBank and KBank’s Subsidiaries in SME Segments (annual sales turnover ≤ Bt400mn) and other loan types

Composition of Growth: Net Fees and Non-interest Income March 2021 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio  1Q21 non-interest income (%) accounted for 30% of total net (Bt bn) 160.49 154.89 50 200 156.86 155.48 (+3%) (-1%) (-3%) 40% operating income and net fee (+2%) 40 37% 36% 150 30% 30% income accounted for 24%; 36% 30% 25% 40% 37% 40.03 30 25% 23% 24% 100 21% non-interest income increased (+5% YOY) 20 19% YoY, mainly from mark to 50 60% 63% 64% 70% 30% 10 0 70% 0 market of financial assets 2017 2018 2019 2020* 1Q21 2017 2018 2019 2020* 1Q21 according to market condition Non-interest Income Ratio Net Fee Income Ratio Net Interest Income Non-interest Income and net fee income Non-interest Income Net Fee Income  Net fee income increased 7% (Bt bn) 70 62.70 Other Operating Income 65 (-2%) 56.95 57.80 YoY, mainly from fund 2% 60 (-9%) (+2%) (Bt bn)41.31 3% Fee and Service Income - net 55 3% 45.87 (+6%) 38.12 36.74 management business and 50 (- 21%) 40 (-8%) (-4%) 33.00 Net Premium Earned - net 45 4% (- 10%) brokerage business 40 66% 30 35 67% 64% Dividend Income 30 72% 25 Share of Profit from Investments on Equity 20 9.43 20 11.89 Method 9% 5% (+7% YoY) 15 6% 0.1% (+19% YoY) 3% 4% 3% 10 0.3% 0.1% 15% 5% Gain on Investment 10 6% 5% 3% 79% 64% 5 16% 13% 14% 18% 1% 7% -0.4% -1% 0 -0.3% 15% Gain on financial instrument measured at FVTPL 0 -1% -4% (Gain on Trading and FX transactions-Old) -5 2017 2018 2019 2020* 1Q21 2017 2018 2019 2020* 1Q21 Note: - Non-interest Income Ratio = Non-interest Income/Total Operating Income - net - Net Fee Income Ratio = Net Fee Income / Total Operating Income - net - Net Premium Earned - net = Net Premium Earned less Underwriting Expense * The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years’ financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9).

12 Asset Quality and Expected credit loss (Provision) March 2021 (Consolidated) Expected credit loss (Provision) Coverage Ratio During 1997 During 1997  Asset quality remains manageable; closely Asian Crisis* Asian Crisis* 154.0 (%) 160.6 monitored and constantly reviewed (Bt bn) 141.4 148.6 149.2 134.5 54 50.6 150 131.8 127.1 130.0 148.5 48 44.1 43.5  NPL ratio in 1Q21 was at 3.93%, with 41.8 111.0 130.9 42 91.6 36 33.8 32.5 34.0 100 coverage ratio of 154% 30 26.4 24 16.8 48.8  1Q21 credit cost was 152bps; while 18 14.2 50 34.7 34.2 9.4 11.7 25.4 30.0 12 6.7 7.3 8.4 8.7 COVID-19 negatively affected asset quality, 6 2.3 0.7 relief measures lessened impact in the 0 0 1996 1997 1998 1999 2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020**1Q21 1996 1997 1998 1999 2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 1Q21 short-term 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 NPL Ratio and Credit Cost

During 1997 Asian Crisis* (%) 888 (bps) 45 42.0 900 40 NPL ratio Credit Cost 723 35 31.7 700 30 23.5 500 25 NPL was peak at 42.3% in 1Q99 20 287 239 204 205 300 NPL Ratio by Business 2016 2017 2018 2019 2020 1Q21 15 168 175 174 152 15.9 102 96 66 64 66 85 Corporate Business <2% <2% <2% <2% <2% <2% 10 100 44 3.76 3.32 3.30 3.34 3.65 3.93 3.93 5 14 3.76 2.45 2.16 2.11 2.24 2.70 SME Business ~5% ~5% ~5% ~6% <7% <7% 5.1 0 -100 Retail Business*** ~4% ~4% ~4% ~4% <5% <5% 1996 1997 1998 1999 2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** 1Q21 Notes: * Data in 1996-1997 is KBank only ** The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: Financial Instruments) since January 1, 2020 onwards, some financial statements and financial ratios are not comparable with previous years’ financial figures before Y2020, which were based on the prior accounting standards (non-TFRS9). *** NPL ratio in retail business, excluding 180 dpd (days past due) of credit card and consumer loans for peer comparison

ROA and ROE March 2021 (Consolidated)

ROA ROE***

(%) (%) 24 2.5 20 2.0 16 1.5 1.20 1.27 1.20 1.14 12 10.24 10.61 9.90 9.57 0.85 7.10 1.0 8 0.5 4 0.0 0 2017 2018 2019 2020* 1Q21 2017 2018 2019 2020* 1Q21

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 ROA (%) 1.20 1.27 1.20 0.85 0.87 1.14 1.47 1.14

ROE (%) 10.24 10.61 9.90 7.10 7.26 9.57 12.74 9.57

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). ** The Bank restated the 1Q20 financial statements, due to reclassification of investment in trust fund to FVOCI. *** 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

14 Net Interest Margin March 2021 (Consolidated) NIM Yield on Earnings Assets and Cost of Fund (%) (%) 8.00 5 6.00 5.45 5.29 5.21 4 3.44 3.39 4.82 3.31 3.27 3.16 4.37 4.56 4.27 4.19 3.83 Yield on Loans 3 4.00 3.59 Yield on Earnings Assets 2 1 2.00 1.22 1.19 1.23 0.78 0.6 Cost of Fund 0 1.11 1.11 1.14 0.71 Cost of Deposits* 0.00 0.55 2017 2018 2019 2020** 1Q21 2017 2018 2019 2020* 1Q21  NIM was 3.16% in 1Q21, decreasing YoY, due to lower yield on loans from interest rate cut, deterioration of asset quality and loans in relief measures despite lower cost of deposit from savings rate cut  High portion of CASA (81%) also helped support low cost of fund

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 NIM (%) 3.44 3.39 3.31 3.27 3.49 3.16 3.08 3.16 Yield on Earnings Assets (%) 4.37 4.27 4.19 3.83 4.20 3.59 3.52 3.59 Yield on Loans (%) 5.45 5.29 5.21 4.82 5.37 4.56 4.42 4.56 Cost of Fund (%) 1.22 1.19 1.23 0.78 0.98 0.60 0.62 0.60 Cost of Deposits (%), incl DPA 1.11 1.11 1.14 0.71 0.87 0.55 0.57 0.55

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 2 years, according to the BOT announcement in the Royal Gazette, during January 2020 to December 2021. ** 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).

Cost to Income Ratio March 2021 (Consolidated)

Cost to Income Ratio Cost to Average Assets Ratio

(%) (%) 6 50 42.31 43.96 45.32 45.19 41.30 40 4 2.31 2.26 2.26 30 2.01 1.78 20 2 10 0 0 2017 2018 2019 2020* 1Q21 2017 2018 2019 2020* 1Q21

 1Q21 cost to income ratio was 41.30%, decreased YoY mainly due to a managed expenses in economic slowdown; but cost to income will rise seasonally in 2H

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Cost to Income Ratio (%) 42.31 43.96 45.32 45.19* 45.94* 41.30 52.10* 41.30 Cost to Average Assets Ratio (%) 2.31 2.26 2.26 2.01 2.06 1.78 2.25 1.78

16 Capital (Reported Number: Excluding Net Profit of Each Period) March 2021 (Consolidated) Bank only KASIKORNBANK FINANCIAL CONGLOMERATE* Basel III Basel III

(%) 17.26 18.52 17.74 17.42 (%) 19.62 17.20 17.96 18.32 18.80 18.44 18.0 18.0 3.43 2.67 2.58 2.51 3.58 2.80 2.77 2.30 2.42 2.64 15.0 0.65 AT1 0.63 AT1 0.68 AT1 0.66 AT1 15.0 12.0 12.0 9.0 14.62 14.75 14.94 14.94 14.65 9.0 15.66 15.90 16.19 16.13 15.80 6.0 6.0 3.0 3.0 0.0 0.0 2017 2018 2019 2020** 1Q21 2017 2018 2019 2020** 1Q21

Tier1 Tier2 Tier1 Tier2  Capital adequacy remains sufficient to support business growth; maintained adequate Tier 1 ratio, as required under the Basel III and new requirements  Additional Tier 1 instrument issuance is intended to optimize and further strengthen capital base in long run

2016 2017 2018 2019 2020 1Q21 Bank only CAR (%), excluding net profit of each period 18.17 17.20 17.26 18.52 17.74 17.42 Tier 1 (%), excluding net profit of each period 14.27 14.62 14.75 14.94 14.94 14.65 KASIKORNBANK FINANCIAL CONGLOM ERATE* CAR (%), excluding net profit of each period 18.84 17.96 18.32 19.62 18.80 18.44 Tier 1 (%), excluding net profit of each period 15.16 15.66 15.90 16.19 16.13 15.80

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). 17

Dividend Dividend Per Share Dividend Payout Ratio

(%) (Bt) 5.00 5.0 50 42.49 4.00 4.00 4.00 4.00 4.00 40 34.43* 4.0 3.50 31.88 32.14 32.80 29.40 3.00 27.00 27.83 23.73 3.0 30 22.32 26.96 2.50 2.50 2.50 2.50 32.33 22.12 2.00 2.00 2.0 20 22.51

1.0 10

0.0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Interim Dividend  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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dividend Per Share (Bt) 2.00 2.00 2.50 2.50 2.50 3.00 3.50 4.00 4.00 4.00 4.00 4.00 5.00 2.50 Dividend Payout Ratio (%) 31.88 32.33 42.49 32.14 27.00 22.12 22.32 22.51 27.83 26.96 32.80 29.40 34.43 23.73 Note: * The Board of Directors’ Meeting of KASIKORNBANK PCL. No. 1/2020, held on January 30, 2020 has approved the share repurchase project for financial management purposes with the number of shares to be repurchased not exceeding 23,932,601 shares or equal to the amount of not exceeding 1% of the total paid-up capital of the Bank and the maximum amount not exceeding Bt4,600mn. The share repurchase was conducted through the Stock Exchange of Thailand during February 14, 2020 to February 27, 2020. **Due to the high uncertainty in the near future, the BOT supports the preventive measures by allowing financial institutions to suspend payment of interim dividend from Y2020 operating performance and to pay dividends for the year 2020 not exceeding last year payout ratio and 50% of this year’s net profit. 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. 18 Summary  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 loans relief measures; appropriate liquidity maintained; manageable asset quality supported by strong risk management capabilities; appropriate loan loss reserves; manageable cost to income ratio; appropriate ROE maintained  Adequate Capital: maintains adequate Tier 1 ratio, as required under Basel III amid COVID-19 especially after debt moratorium and remain sufficient for new requirements. Additional Tier 1 instrument issuance is intended to optimize and further strengthen capital base in long run  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

Appendix

20 KBank: Strategy

Performance  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 PLUS Users and Transactions** (mn)

17.7 14,516 20 (+7.3%) 20 15,000 16.0 16.5 15.0 13.9 15 15 8,477 15.0 10,000 10 10 5,188 12.7 14.4 4,323 3,052 12.1 5,000 5 10.0 3,213 5 1,646 7.3 4.6 0 0 0 2016 2017 2018 2019 2020 1Q20 1Q21 2016 2017 2018 2019 2020 Total Users Number of Transactions (RHS)

* Customers in Retail Business account for 93%, SME Business 7%, and Corporate ** Active users defined as minimum of 1 Login per month; 75% active users as of 1Q21 Business less than 1% of customer portfolio Net Promoter Score (NPS)*** (#1 among Banks in Thailand) 40 35 35 30 30 25 2019 2020

*** NPS Study 2020 surveyed by The Nielsen Company during August to September 2020, measuring the willingness of customers to recommend a company’s products or services to others

22 The K-Strategy  K-Strategy is reimagined to drive growth and empower customer Purpose To Empower Every Customer’s Life and Business

Strong STRONG TRUSTWORTHY BRAND Brand

Growth Dominate Digital Reimagine Commercial Democratize Penetrate Strategy Payment & Consumer Lending Investment & Insurance Regional Market

Strengthen Harmonized Sales and Service Experience

Improve Value-Based Productivity

Growth Strategy: Strengthen Leadership Position Dominate Digital Payment . K PLUS as Open Banking Platform: Gain online payment share via K PLUS open-platform and ecosystem partnership collaboration . Omni-Channel Merchant Platform: Accept all sources of funds and support Online to Offline (O2O) experience; providing smart information and Customer Relationship Management (CRM) . Regional Payment and Settlement: Facilitate payment and settlement to provide regional business connectivity Reimagine Commercial & Consumer Lending . Penetrating Consumer Credit: Add secured loan for self-employed and expand into unsecured loans . SME Business Recovery: Use data to improve customer survival rate . Leveraging Corporate Relationship: Service large corporates & monetize relationship through shared platforms with capital markets fee bundling

Democratize Investment & Insurance . Master Relationship Manager (RM) x Completed Offering: Penetrate wealth-potential customers via Master RM by completed offerings and better experience . Digital & New Investment Platform: Provide personal-based advice to offer products thru Open Architecture platform . Competitive Product Offerings: Improve return to customers by better sourcing and optimized risk; develop products for small customers

24 Penetrate Regional Market: Asset-Light Regional Expansion into . Growth in regional markets: strategically focusing on AEC+3 markets, KBank pursues an integrated regional operating model: physical footprint, digital platform, and regional partnerships

Physical Footprint

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

Note: AEC - Two subsidiary banks: KASIKORNTHAI BANK (Lao PDR) with two branches in Ponesinuan and Lane Xang, KASIKORNBANK (CHINA) with three branches in Shenzhen, Chengdu, Shanghai and one sub-branch in Long Gang - Three international branches: Cayman Islands, Hong Kong, and Phnom Penh - Seven representative offices: Beijing, Kunming, Tokyo, Yangon, Ho Chi Minh, Hanoi, and Jakarta - One strategic partner: Maspion Bank in Indonesia - Global partners with 84 banks in 17 countries: 52 Japanese partner banks; 10 Chinese partner banks; 1 Hong Kong bank; 3 Korean partner banks; 13 ASEAN partner banks (in Vietnam, Indonesia, Lao PDR, Cambodia, Philippines, Brunei, Malaysia, Singapore and Myanmar); 4 European regional banks (in Germany, Italy and Russia) and 1 Indian Bank …and others

Penetrate Regional Market: KBank’s Regional Digital Expansion via 3 Strategic Plays  To achieve rapid regional digital expansion in AEC+3, KBank will use 3 strategic plays, each supporting the others, to build growth momentum and accelerate customer base development & financial return Strategic Plays 2021 Strategic Actions DIGITAL LENDING & BANKING-AS-A-SERVICE End-to-end online high-yield credit capabilities with expansion to Disruptive lending platform (BaaS: Bank as a Service) Pilot digital lending with Play CREDIT TECH local partners Origination Underwriting Credit Scoring Loan Booking KBank & Monitoring Guarantee Collection Operation FI Partners

MASS ACQUISITION WITH TRANSACTIONAL BANKING Customer acquisition through local platforms with engagement via Build 4 transactional Mass transactional banking banking channels Acquisition Business Retail Play with low-risk, stage-gate K-Cyber Ecosystem EDC & PGW ATM / Agent execution Banking Partners

AGGRESSIVE CORPORATE LENDING Aggressive lending by capturing four main customer groups Grow corporate lending Aggressive Play Customer Group portfolio aggressively with Locally Listed Local Large competitive pricing Companies Corporates TDI AEC+3

Note: TDI = Thai Direct Investment; EDC = Electronic Data Capture; PGW = Payment Gateway 26 Strengthen Harmonized Sales and Service Experience  Reshape channel mix and sales model according to evolving customer behavior, to deliver better experience and productivity

Optimize physical channel 1 K PLUS as OPEN 2 PAYMENT PLATFORM network by maintaining and Authenticator (K-ID) coverage, resizing, and Branch remodeling Harmonized Channel Banking Agent Strengthen digital marketing, develop

digital/hybrid ATM/CDM onboarding KCC complements Enhance sales model to 4 3 deliver total solution with digital channels by Website RM/PS providing Contact TSA/DSA best customer fit troubleshooting and Center educational digital service

Note: KCC = K-Contact Center; RM = Relationship Manager; PS = Product Specialist, TSA = Tele Sale Agent, DSA = Direct Sale Agent

Improve Value-Based Productivity . Dynamic and flexible resource allocation aligned with strategic direction and support to new businesses, e.g. digital payment, credit reimagining, investment and insurance democratization, and regional market penetration . Spending effectiveness aligned with business priorities and desired value of product proposition . Productivity improvement focused on Integrated End-to-End Customer Journey and Organization-wide Support Excellence using lean management toward data driven in the areas of: Seamless customer service experience and sales productivity enhancement IT modernization and procurement effectiveness .Optimize branch & ATM network .Improve asset utilization; optimize maintenance service .Enhance digital on-boarding /license costs and contract negotiations .Drive customer migration to chat bot and self- service options on K PLUS .Design IT architecture and infrastructure together with .Increase sales productivity using data analytics adopting modernized technology for cost optimization Human resources optimization Operational process improvement .Focus on lean organization with organizational .Enhance cash handling optimization and centralization design, workforce management through staff model redeploying, upskilling, and reskilling .Streamline and digitize back-office processes .Strengthen E2E credit and non-credit risk product .Create organizational infrastructure to drive agile processes working environment and workplace redesigned .Enhance data analytics tools for risk and compliance monitoring

28 New Capabilities to Enable K-Strategy  8 Transformation Journeys are new capabilities to help “Empower Every Customer’s Life and Business” To Empower Every Customer’s Life and Business

1 Ecosystem Partnership Regional 4 & Harmonized Channel Payment & Settlement . Orchestrating an ecosystems with partners . Building and connecting cross- and providing excellent experiences border payment capability throughout the customer journey

2 5 Intelligent Lending Purposeful Data Analytics . Leveraging customer data to . Expanding data analytics offer personalized lending & Practical capability to enhance business experience and achieve fair risk Leadership opportunity and operational adjusted return efficiency

3 Proactive Risk & Cyber Security 6 Compliance Management . Enhancing comprehensive . Proactively identifying potential risk and cyber security establishing loss prevention and detection

7 Performing Talent and Agile Organization 8 Modern World Class Technology Capability

Ecosystem Partnership & Harmonized Channel . Orchestrating an ecosystem with partners and providing excellence throughout the customer journey . Developing presence where customers are with an excellent customer experience

Partnership

eWallet and Payment

Joint Venture for Co-Lending through LINE Platform University and Hospital

E-Commerce & Lifestyle Platform/ Co-Lending Investment Platform through Partners’ Platform

Venture Capital*

Note: Beacon Venture Capital, a wholly-owned venture capital fund of KBank, invests in companies and startups, via: - * Direct investment: a total fund size of USD135mn to invest in early to growth-stage technology startups covering not only FinTech but also consumer internet and enterprise technology, aiming to leverage new technology from startups to support KBank’s businesses - 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 and China Renaissance

30 Harmonized Channels: Domestic Channels and No. of Transactions Branch E-Machine (ATM/CDM**)

(+19*) (-117)

(-1) (-30*) 11,891 11,985 10,973 10,981 10,864 11,000 1,026 958 886 860 859 830

2017 2018 2019 2020 1Q21 2021T 2017 2018 2019 2020 1Q21 2021T

** Cash Deposit Machine Mobile Banking Users (mn) Number of Transactions***

1.2bn 1.5bn 2.0bn 2.7bn 3.8bn 1.2bn Branch 11% 8% 5% 3% 2% 1% 20% 16% (+3.1*) 28% E-Machine (+0.6) 37% 48% 59% Mobile 78% 83% 17.5 68% Banking 14.4 15.0 58% 10.0 12.1 44% 7.3 30%

2017 2018 2019 2020 1Q21 2021T 2016 2017 2018 2019 2020 1Q21 * Compared to Y2020 *** Transaction includes only cash deposit, cash withdrawal, payment and transfer

Sample of Domestic Channels New KBank Branch (Hybrid Branch) Community Branch (K Park)

Hybrid Branch K Park @ PTT Station This new branch design focuses on increasing flexibility and efficiency of branch banking services. In this new branch format, the The community bank where local people able to spend their life comfortably service area and all furniture in the waiting area are specially designed to assist branch staff to smoothly facilitate customer all day! Focusing on the outskirts of the city is response to the expansion of adoption of self-service machines and digital channels (K PLUS). The modular counter allows branch staff to serve customers with more villages and schools. K Park provides financial zones for transactions flexibility in adjusting counter height (High/Low) to accommodate different flow-in throughout the day. and co-working spaces with the Kids Zone and parcel service from KBank partner in the same place.

THE WISDOM Lounge E-Machine Digital Banking

Digital Banking : includes: •K PLUS • K PLUS SME • K PLUS SHOP • K-Cyber Service • K-Corporate Connect • K-Payment Gateway • K-PowerP@y (mPOS) Apart from being an ordinary cash-focused servicing machine, • LINE BK we enhance our self-service machine to be an authentication • MAKE THE WISDOM @ ICON SIAM touch point for all digital onboarding such as e-Savings and e- • Khunthong Wallet account opening. The e-machines will provide massive An exclusive center providing a full range of services and • LINE KBank LIVE facilities to High Net Worth Individuals and Affluent segments additional convenience apart from normal branch coverage.

32 Intelligent Lending . Prudently scaling customer portfolio with better serve end-to-end customer journey; these includes: . Enhance ability to leverage overall data foundation, develop insight-driven methods in defining customer qualification criteria and credit scoring to promptly offer personalized lending experience where needs; while the bank still balance acceptable risk and fair return. . Redefine insight-driven customer-centric collection strategy with appropriate approach and portfolio quality improvement

End to End Credit Journey

Target Port Lead Reach Marketing Credit Monitoring Generation & Offering Assessment & Collection

Expected Outcome

Wider Customer Reach Higher Conversion Optimized Risk Return Faster Time to Market

Proactive Risk & Compliance Management Value Enabler Key Capabilities Value Protector

Partner with business and provide Strengthen & secure our business effective integrated risk solutions to be resilient and sustainable • Predictive and integrated • Prudent risk-based provision customer segment-based and capital management credit analytics . Credit risk analytics & • Early error detection through effective quality assurance and • Data-led asset quality integrated credit portfolio fraud management management to provide planning & monitoring persona-based relief • Effective and proactive packages/collection treatment . Enhanced fraud analytics compliance management to Covid-19 affected customers & incident management • Customer data governance • Intelligent fraud management and management in all key business processes . Customer data protection • Effective risk management execution for business partners and 3rd parties . Organization-wide prudent risk culture . Agile way of working and delivering integrated risk solutions . Continuity & Resilient Operation under COVID-19

34 Regional Payment & Settlement  Facilitate payments and settlements to provide regional business connectivity and opportunities for lending

. Execute money transfer transactions Become AEC’s Settlement Bank . Support multiple settlement Flow of Data currencies . Ensure funds availability and a smooth experience

ERP Solution Shipping & Inventory Mgmt

Flow of Become “Exploring” Goods Engage customers with Total Main Facilitator Bank ERP solution . Facilitate payment transactions Transactional Lending . Enhance facilitating . Support multiple sources of funds business with ERP solution . Ensure seamless experience . Provide transactional throughout journey Flow of Money lending with value added service

Note: ERP = Enterprise Resource Planning

Data Analytics . Enhancing data analytics capability to enhance business opportunities and operational efficiency To Empower Every Customer’s Life and Business

A B C D E F G Business Data Data Modeling / MIS Evaluation Deployment Maintenance Understanding Understanding Preparation /Dashboard & Feedback loop

Organization Demand & Supply Management, Role and Responsibility (R&R) and People Capability Structure

Process & Data Management & Tools Model / Management Information System (MIS) Infrastructure Development, Evaluation & Deployment

Culture Communication & Adoption

Data Incident Management Data Incident Management

36 Cyber Security . Enhancing comprehensive cyber security and IT capabilities; addressing and aligning critical capabilities to fortify cyber security

Vision Protect KBank’s Cyber Assets & Reputation and Statement Deliver Security, Resilience, & Trustworthiness Ensure care & timely Customer Protect Customer Assets Provide secured services response for any cyber Promise with KBank incidents Advance Prevention Expand Value Chain Expand Detection & Prevention Response Strategy Strengthen processes & technology Expand prevention assurance Expand cyber threat detection controls to address advanced threats program to K Group and third party capability throughout the value chain, and new technology adoption engagements and strengthen response capabilities

Cyber Hygiene Culture Cyber Hygiene Behaviors in Customer & Employee Work & Life

Situation 4 Effective 1 Effective Risk 2 Advanced 3 Awareness & Incident Response Strategic Identification Threat Prevention Capabilities Threat Detection & Recovery

5 Cyber Hygiene Culture

Performing Talent and Agile Organization . People Strategy : #UnlockPeoplePotential Aspiration Aspiration #UnlockPeoplePotential To build the Toorganization build an with Uplift People Untangle Unify organizationfull of positive- filled & Talent Organization Culture withenergy positive people who Uplift employees’ profiles & Establish ambidextrous Embed K-Culture DNA skill mobilizing capabilities organization; build effective energyare committedand capable to into KBank’s way of work drive for mutual to have the “right” number coexistence and seamless to ensure cross-functional people who are of “right” skill people & collaboration for faster alignment and achieve goals in order to committed to drive “right” leaders at the “right” decision-making and mutual goals of the bank ceaselessly time to fit with business execution for mutual goals in deliver the best needs ordersolutions to to ceaselesslycustomers deliver Upgrade Elevate HR's role beyond supporting execution to become a the best & timely to HR4.0 thought partner and solution enabler solutions to customers Deliver Employee Value Winning Team : Self Learning & Growth : Proposition Meaningful contribution to community

38 KASIKORN BUSINESS – TECHNOLOGY GROUP (KBTG) Aiming to build modern world-class technology, allowing KBank to be the Top Regional Financial Provider

IT Project Delivery . Drive strategic-focused projects and manage overall project Excellence portfolio for on-time, on-budget delivery

. Best Employer of Choice . Agile in Southeast Asia . Global Delivery . Acquire, motivate, retain People E2E Software Practice employees Capability Delivery . E2E Automation . Enhance employee Transformation (e.g. DevSecOps, capability Test Automation, BEST TECH Infra as Code) ORGANIZATION . E2E Process in Southeast Asia Improvement BY 2022 Breakthrough Operational Innovation Excellence

. Scale up existing products . Brilliant Basics (e.g. incident, . Continue to explore service availability, capacity) (Innovation Runway / Idea . Top-tier Security Level Portal, Partnership) . IT Cost Reduction . Build new capabilities (AI Factory, NLP for cost saving) Note: DevSecOps = Development, Security, and Operation; CICD = Continuous Integration and Continuous Delivery 39

KBTG Technology Towards a Sustainable Society: Paperless, Cashless and Contactless K PLUS Mobile Banking: grow #1 Use decentralized technology to Thai mobile banking platform for digitize contracts and assets for easy financial transactions, mobile more inclusive and efficient payments, and lifestyle banking financial services MAKE by KBank: launch new mobile banking application for a new generation in 1Q21 Eatable: launch a novel food DECENTRALIZED KhunThong: create a social ordering platform to maximize FINANCE MOBILE chatbot with seamless payment flexibility for restaurants and their PAYMENT experience customers in the 4.0 era PLATFORM BUSINESS Create a faster, more secure, automated IT process that integrates Employ data analytics and software development, code security machine learning to improve credit DEVSECOPS scan, and deployment into a single process, personalization, and automated workflow product recommendations

Set up regional-scale infrastructure MACHINE to support IT services that can run LEARNING Launch AI-based contactless face anywhere – on premises and on cloud – and can expand recognition technology service for exponentially payment applications and partners HYBRID CLOUD

Enable computer understanding Establish software testing process using automation technology to in Thai language (e.g. chatbot, reduce manual testing effort as well social listening), which can reduce BIOMETRICS as increase scale, quality, and human operator workload by 65% agility TEST THAI NLP AUTOMATION Note: NLP = Natural Language Programming 40 KBTG Technology – Examples of Notable Innovations in 1Q21 Towards a Sustainable Society: Paperless, Cashless, and Contactless MAKE by KBank LINE BK KUBIX Kubix Digital Asset Company Limited was A mobile banking application designed specifically Customers can open an account, make funds established to operate as an Initial Coin for a new generation increasingly reliant on transfers, and receive real-time notifications on Offering (ICO) portal for offering digital tokens mobile banking for the freedom it gives to transactions; includes integration of risk- in the primary market, aiming to develop personalize financial management. assessment for instant loan service approval investment markets via blockchain, while via LINE application . helping to promote technological literacy among investors, especially in digital token investment.

Chula Care Application KhunThong Tech Kampus Chula Hospital's patients can access multiple Social chatbot helping friends settle expenses A special collaboration between KBTG and nine services in one application, e.g., booking within a chat for a seamless payment top research/academic institutes consists of two appointments, queuing and using tele clinic service experience. initiatives: co-research and curriculum with convenient payment options via credit card development, aiming to grow Thai technology or K PLUS. Patients can also choose to receive innovation, while also develop new generations medicine from a 7-Eleven convenience store. of young talent about to enter the real world.

KBTG Regional Digital Expansion KASIKORN VISION Information Technology Co.,Ltd (KTECH) . 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 . Promoting the expansion of financial science and technology to ASEAN countries and making Shenzhen an important node in the Belt and Road Initiative . Successfully completed the first project, a personal car rental loan KTECH Office in Shenzhen, China service in November 2020

Financial Service Expansion in AEC . K-ATM machines installed in Lao People’s Democratic Republic to provide greater convenience to customers in conducting transactions via other banks’ cards and QR codes . Support other businesses of KBank Laos through new products and services e.g., payroll service via QR KBank, cash-in & cash-out channel for QR KBank . Enhanced KBank brand and product awareness K-ATM in Lao PDR

42 KBTG: K-Stadium, Innovation Center and K+ Building

K-Stadium at KBTG Main Building K+ Building: City-based KBTG office with co-working spaces

Innovation Center at KBTG Main Building Creative Box for small meeting at KBTG Main Building K+ Building: City-based KBTG office with co-working spaces

KBTG Structure

. A Bridge between KBank and KASIKORN BUSINESS – TECHNOLOGY GROUP . Group’s Control Structure

Enable Seamless Integration

. Technology Research . Software Development to . Control Infrastructure . Center of Excellence for . Venture Builder and Innovation Labs Support Innovation and Resources for the Change, Technical Resource Pool Business Requirements the Run, and the Gone and Service

Pioneer new Ensure Service Deliver Service Generate Business Value possibilities Continuity Excellence 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 SERVE changed names from PROGRESS SOFTWARE COMPANY LIMITED; established in March 1993

44 KBank: Business Highlights

Customer Segments

Multi-Corporate Company with annual sales >Bt5,000mn Corporate Business Business Large Corporate Business Company with annual sales >Bt400mn to Bt5,000mn

Medium Business Individual or company with annual sales >Bt50mn to Bt400mn SME Business Small & Micro Individual or company with annual sales ≤ Bt50mn, and with commercial Business credit limit ≤ Bt15mn

High Net Worth Individual wealth with KBank and its wholly-owned subsidiaries* ≥ Bt50mn Individual Individual wealth with KBank and its wholly-owned subsidiaries* Affluent Retail ≥ Bt10mn to < Bt50mn Business Individual wealth with KBank and its wholly-owned subsidiaries* Middle Income ≥ Bt15,000 to < Bt10mn

Mass Individual wealth with KBank and its wholly-owned subsidiaries* < Bt15,000 Retail Business Retail  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

46 Revenue by Business March 2021 (Consolidated) Loans Portfolio structure Non-interest Income *

Retail Corporate Business Business Corporate (28.8%) (37.1%) Business Average Yield: 5-7% Average Yield: 3-5% Retail (31.5%) Business (49.3%) SME Business SME (34.1%) Business Average Yield: 5-7% (19.2%)

* Non-interest income excludes capital market business, treasury business and others Note: Loan portion and loan yield of each customer segment includes loans from the Enterprise Risk Management Division (NPL + Performing Restructured Loans); figures are not comparable with loan data in other pages * 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).

Business Direction . Growth Strategy  Dominate Digital Payments  Penetrate Regional Markets  Reimagine Commercial & Consumer Lending  Strengthen Harmonized Sales and Service Experience  Democratize Investment & Insurance  Improve Value-Based Productivity Corporate Business SME Business Retail Business

Trusted partner to enrich customer’s Bank for SME Customers Best Customer-Centric Bank businesses with best in class . Integrated business solutions, both . Ecosystem orchestrator and financial services and solutions financial and non-financial harmonized channel to deliver . Best funding solutions . Digital banking for SME anytime, anywhere experience . Best transaction banking and . Data Analytic Lending . Data-driven offerings, especially breakthrough initiator consumer finance

World Business Private Banking Group Regional digital expansion through 3 strategic plays International Comprehensive Wealth Management Services . Aggressive Play: Grow corporate lending portfolio . Cooperate with Lombard Odier to raise service and product aggressively with competitive pricing standards to international levels . Mass Acquisition Play: Build 4 transactional banking channels . Provide integrated wealth planning services, advising families to acquire customers through local platforms with low-risk and on wealth management, continuity, and growth stage-gate execution . Enhance use of technology to improve client experience . Disruptive Play: Pilot digital lending with local partners and . Build comprehensive client insights from data-mining build end-to-end online high-yield credit capabilities with expansion to lending platforms (BaaS: Bank as a Service)

48 Corporate Business: Performance and Market Position

Medium Multi-Corporate Large Corporate Small and Micro High Net Worth Affluent Middle Mass Business Business Business Business Individual Income

Main Bank Status* Corporate Bond Underwriting

30% 34% 22% 27% 20% 30% 26% 26% 25% 20% 19% 18% 23% 24% 25% 16% 17% 17% 14% 20% (#1) (#1) (#1) (#1) (#1) (#1) (#1) (#1) 11% 10% (#1) (#2) (#4) (#2) (#2) (#3) (#1) (#1) 10% (#2)

0% 0% 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 2009 2010 2011 2012 2013 2014 2016 2018 Source: The Thai Bond Market Association (ThaiBMA) Source: KBank Customer Survey

Performance and Market Position  Main Bank Status: maintained #1 ranking in 2018  Corporate Bond Underwriting: ranked #1 with 18% market share in 1Q21  Transaction Services: top player in transactional banking services  Cash Management Services: MB** 24% market share in 2018 (#1) / CB** 24% market share in 2018 (#2)  Trade Finance: MB** 27% market share in 2018 (#1) / CB** 32% market share in 2018 (#1)

Note: * Since 2014, Corporate and SME Business main bank status is reported every two years 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

SME Business: Performance and Market Position Medium Multi-Corporate Large Corporate Small and Micro High Net Worth Affluent Middle Mass Business Business Business Business Individual Income

#1 in Market Share by Value* #1 in Main Bank Status* 31% 30% 30% 30% 30% 40% 30% 28% 35% 29% 29% 30% 31% 30% 28% 20% (#1) (#1) (#1) (#1) (#1) (#1) (#1)(#1) (#1) (#1) 20% (#1) (#1)

10% 10%

0% 0% 2011 2012 2013 2014 2016 2018 2011 2012 2013 2014 2016 2018 Source: KBank Customer Survey Source: KBank Customer Survey Performance and Market Position . Main Bank Status: improved main bank status and strengthened #1 position . Market Share: 31% market share; maintained #1 position . Market Position: strengthened #1 position in SME market – “Bank for SMEs”; targeted to be SME market leader in all areas  KBank offered comprehensive solutions to SMEs through K SME CARE program launched in 2006, with a total of 25 classes and about 14,509 participants so far. In 2020, during the COVID-19 pandemic, KBank introduced How2Think - an online seminar with 24 topics Live on the "K SME" Facebook Page with over 300,000 views.

Note: - SME Business in Thailand accounts for 43.0% of Thailand’s GDP, or Bt7.01trn (as of December 2018); supported by the government to become a key factor in economic and social growth (Source: The Office of Small and Medium Enterprises Promotion or OSMEP) - Market Share by Value = share of revenue (derived from both credit and non-credit products) that each bank gains from the market - 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 * Since 2014, corporate and SME business main bank status and market share are reported every two years ** Market share by value and main bank status in 2018 may not be comparable with those in previous years due to a new SME population base covering more SMEs with better data availability

50 Private Banking Group: Performance and Market Position

Medium Multi-Corporate Large Corporate Small and Micro High Net Worth Affluent Middle Mass Business Business Business Business Individual* Income

Market Share (Market Penetration) Assets Under Management (AUM)

(Bt bn) 37% 36% 36% 36% 800 775 774 750 35% 717 34% 34% 34% 687 34% 700 677 34% (#1) 650 33% 600 32% 2017 2018 2019 2020 1Q21 2016 2017 2018 2019 2020 1Q21

Source: Private Banking Group (market share by number of customers) Performance and Market Position  Market Penetration: ranked #1 with 36% market share (12,076 customers) and Bt774bn AUM in 1Q21  AUM Breakdown: Investment 65% and Deposit 35%  Focus Customers (Type of Customer):  Sophisticated customers (over 70% of total customers); Non-Sophisticated customers  Product Types and Services:  Collaborate with Lombard Odier to develop innovative products; build capability via staff trainings and regular workshops; offer advisory services with close CIO 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

Note: * High Net Worth Individual = Individual wealth with KBank and its wholly-owned subsidiaries ≥ Bt50mn

Retail Business: Performance and Market Position Multi-Corporate Large Corporate Medium Small and Micro High Net Worth Affluent Middle Mass Business Business Business Business Individual Income

Bancassurance* Mortgage Loan (New Business, Total and Renewal Premium) #1 in Mutual Fund (KAsset)

(% Market Share) Ranked #2 in Total & Renewal Premiums and (% Market Share) Ranked #1 in Mutual Fund AUM (% Market Share) Maintaining Top 3 with good quality portfolio #3 in New Business (KAsset) 35% 29.7% 30% 27.8% 28.5% 24.8% 30% 9.3% 24.4% 21.8% 10% 25% 23.8% 23.0% 7.4% 19.9% 16.9% 20.2% 20.1% 21.5% 7.4% 7.4% 7.7% 20.1% 16.6% 20.5% 20.1% 20% 15.8% 16.3% 20% 15% 15.2% 10% 5% 10% (#1) (#1) ( #1) ( #1) (#1) (#3) (#3) (#3) (#3) (#3) 5% 0% 2017 2018 2019 2020 1Q21 0% 0% 20172018201920201Q21 New Business Total Premium Renewal Premium 2016 2017 2018 2019 2020 Performance and Market Position . Strong Growth in Retail Segment: Higher growth than market size in retail customers. KBank’s retail customers grew 8%YoY in 1Q21. . Bancassurance: MTL ranked #2 in total and renewal premiums with market share of 16.3%, and 16.9%, and also ranked #3 in new business with 15.2% market share in 1Q21. A variety of life and non-life products were offered to customers, together with an alternative digital channel via K PLUS. Moreover, coverage for COVID-19 vaccine allergies was offered for customers who renewed or took out COVID-19 insurance . Fund Management Services  Mutual Funds: KAsset maintaining #1 position since 2010, with highest market share at 21.5% in 1Q21. . Mortgage Loans: ranked in top 3, with 9.3% market share in Y2020, expanding into high potential customers with conservative growth together with strengthening partner relationships and maintaining good portfolio quality. . Credit Cards:  Purchase spending: ranked #1, with 20.0% market share in 2M21.  Number of cards: ranked #2, with 13.1% market share in 2M21.  Card-accepting merchant services (online & offline platforms): ranked #1, with more than 31% market share by sales volume in 1M21. .Debit Cards: #1 in total debit card spending with 52% market share in 1M21; maintaining top position by providing functions, features, security, and benefits to match customer lifestyles Variety of cards and campaigns offered to promote greater card spending in several categories, such as travelling, online shopping, and food delivery, including attractive cards with privileges for specific groups; i.e. K-Provincial Debit Card (Nakhon Nayok), MADCARD for Kerry Express, JOURNEY Card, and KBank x BLACKPINK (Black Edition) Card.

Note: * Total Premium = New Business Premium (NBP) + Renewal Premium; New Business Premium = First Year Premium (FYP) + Single Premium (SP) 52 KBank: Risk and Credit Management

KBank Risk Management Structure  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  Approve risk appetite and all risk management policies and guidelines  Oversee effectiveness of consolidated risk management framework Risk Oversight Committee Audit Committee

Operating Committee  Ensure effectiveness of overall risk management of the financial conglomerate Credit Risk Management Sub-committee  Establish risk management policies and risk appetites. Set risk limits for Credit Process Management Sub-committee significant aspects of the various risks Asset and Liabilities Management Sub-committee  Formulate strategy for the organization and resources to be used for the Market Risk Management Sub-committee risk management operation, in line with the risk management policy. Capital Management Sub-committee This strategy must enable the effective analysis, assessment, evaluation, Operational Risk Sub-committee and monitoring of the risk management system Business Continuity Management Sub-committee Information Technology Strategy Sub-committee  Credit Risk Management Sub-committee and Corporate Governance Digital Oriented Risk, Data and Cyber Security - Committee oversee project financing requests that could have adverse and IT Risk Management Sub-committee impacts on the environment and society

 Business units are responsible for continuous and active management of Business Units Internal Audit all relevant risk exposure, to be in line with its returns and risk appetite Business Units RiskRisk Management Management Internal Audit  Risk management is responsible for providing independent and objective CBS/DNW/PBG/ and Control Function ADD CBS/ SME/ RBS/ and Control Function CAT views on specific risk-bearing activities to safeguard the integrity of the CMB/IBB/WBG/ ERM/ CSF/ KBTG CMB/ WBS/ CSP/ TS ERM entire risk process. Control units are set to ensure that risk levels are in ICB/MMT/TWG/ line with our risk appetite CPD/TS/CSF/KBTG  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, 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 54 KBank Credit Risk Management Process  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  Monitor customer behavior and  Efficient collection and making/support tools for more detect early warning signs follow-up of customers with efficient return and risk  Leverage National Credit Bureau late payments evaluation information for effective credit  Restructure viable customers  Setup specific prescreening monitoring to prevent NPLs criteria for potential industries  Ensure credit condition compliance  Foreclose pledged assets to  Enhance customer income (e.g. insurance, capital injection, recover loan loss validation process project progress)  Take prompt action to prevent credit deterioration

KBank Credit Approval Process

Corporate SME SME Retails Retail (Medium) (Small & Micro) (Housing) (Unsecured Loans)

Credit Underwriting Dept. SME Credit and Housing Loan Approval Dept. Payment Service Fulfillment Department

Policy Lending Formula Lending Formula Lending • Application Score • Sufficiency of cash flow • Application Score • Transactional Score • Growth trends and ability to compete • FICO Score • FICO Score • Management experience and depth • Bureau information/Credit history • Bureau information/Credit history • Leverage, Liquidity, Asset Quality, ESG factors • Debt service capacity • Debt service capacity • Credit Risk Mitigation • LTV Approval Process Approval • Facilities Structure

Credit Service Fulfillment Dept. Payment Service Fulfillment Department

• Legal document • Legal document • Limit set up • Limit set up Bank-wide Risk Asset Review

Asset Quality Management Operation Dept. Post Approval Post • Customer Review by Relationship Manager (RM) • Credit Monitoring and Asset Management Unit to • Automated collection system facilitate RM in customer monitoring • Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter • Credit Clinic generation, phone-based collection

Note: FICO = Fair Isaac Corporation

56 KBank Credit Risk Management Process: Collection and Recovery Collection & Recovery Flow

 Efficient collection and follow-up of customers with late payments Performing Loans  Restructure viable customers to prevent NPLs Process  Foreclose pledged assets to recover loan loss Non-Performing Loans Move to Better Status Debt Resolutions Move to Worsen Status

Litigation Process Rescheduled Loans* Performing Debt (Financial Aid Program) Repayment of Loans* Collections Rescheduled/ Restructured NPL** Write-off Term Loans with Restructured Loans DPD > 1 day go to debt (Not classified as NPL) NPL Sales collection stage Relapsed NPL

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

Litigation Process  Litigation process in Thailand takes about 2-3 years Litigation Process Period

Negotiate, await approval, document Under Approximately 2 months Negotiation preparation & lawyer process

Pre-court (Notice) Issue notice & court filing Approximately 2 months

In Court Trial / wait for court ruling Approximately 9-18 months

Collect payment ruled by court or Execution Approximately 3 months foreclose

Public Auction Liquidation process Approximately 6-9 months

58 TFRS9: Asset Class and Expected Credit Loss Asset Class (Defined by Incremental Risks: New definition of SICR and Modified Loans)

Stage 1: Perform Stage 2: Underperforming Stage 3: Non-performing Assets with “> 30 Days Past Due” or higher credit risk than origination New or good assets Defaulted assets capturing via risk information eg. Credit scoring, PD change etc. Expected Credit Loss (ECL): PD x LGD x EAD Probability of Incorporate forward looking over lifetime Default (PD) . Macro-factor is captured through PD point-in-time

Stage 1: Performing 1 Year Define relevant economic Incorporate through PD Derive term structure Weight with probability factors & scenario point-in-time PD & ECL by scenario for final ECL Lifetime Stage 2: Under-performing . Term structure PD is derived over behavioral life Stage 3: Non-performing Lifetime . Multi-scenario is weighted to come up with final Expected Credit Loss (ECL)

Loss Given Incorporate recovery from both collateral and cash payment Default (LGD) 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, Exposure at while to risk, both are “credit exposure” Default (EAD) . Drawn is “outstanding amount + EIR adjustment”; Undrawn is “outstanding amount x conversion factor” “Drawn” “Undrawn” Notional x CCF Principal 1) Contingent products: LI, LC ------+ Accrued Interest 2) Committed unused facilities CCF could be regulatory CCF or behavioral CCF + EIR adjustment

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; LI = Letter of Indemnity; LC = Letter of Credit; CCF = Conversion Credit Factor 59

Credit Bureau Summary National Credit Bureau (NCB)* KBank Practice

 Two Types of Credit Reports Offered by NCB: KBank’s customers applying for loans  Consumer credit report for individuals  Commercial credit report for businesses Sign agreement to allow the Bank to get credit report from NCB  Credit report (monthly reported by members) Optional to Required to  Customer information (Name, address, identification (Large companies normally have Required to reliable financial statements) number, birth date, occupation, etc.)  Credit information (History of application, approval Corporate Business SME Business Retail Business history, loan payment history, etc.) Multi- Large Medium Small & 4 Customer Segments in  Data Record of Credit Report Corporate Corporate Business Micro Retail (HN, AF, MI and MA) Business Business Business  Individuals: Credit report remains on file for 3 years

 Businesses: Credit report remains on file for 3 years Good credit Poor credit Good credit Poor credit  Members: Financial institutions including commercial banks, specialized financial institutions (SFIs), non-bank KBank’s Reject KBank’s Reject Policy application Credit application financial institutions, finance companies, securities Lending Scoring companies, insurance companies, etc.

Note: * 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

60 KBank: Continuity and Resiliency during COVID-19 Situation  KBank takes holistic measures to ensure business continuity and resiliency during COVID-19 situation. Therefore, no COVID-19 spread or any key business disruption. COVID-19 Incident Management • ActivateIncident Response IRT (COVID-19) Team (IRT) • Report/Escalate to Executives to managemanage overalloverall situation/incidents since 1 Feb 20 e.g. key situation, action, criteria

Provide Launch Increase Cleaning Maintain Protective Staff Cycle Install Social Restrict or Measures Thermo Distance Screen PROTECT Equipment & K-Tips at frequently Scan at Key Vendors/ e.g. mask, gel, touched areas e.g. workspace, e.g. protective Buildings Visitors face shield e.g. lifts, doors work from home measures

Internal External MONITOR Provide Contact Channels for Staff Closely monitor situation, impacts, and to inform suspected cases key actions; daily reports to executives

Set up dedicated team to cope with COVID-19 infection incidents RESPONSE e.g. Building - deep cleaning Communication - internal and external via related channels People - provide medical support for infected staff; self quarantine for staff at risk with health report

Business Define key criteria with actions • Update Barebone & Key Activities with key staff Continuity Plan - Workmode (Lean, Critical, Barebone) • Split Site and Provide VPN for key staff (BCP) - Key Scenarios and Actions for COVID-19 • Secure Accommodation /Transportation for key staff

Note: VPN = Virtual Private Network 61

Proactive financial relief programs and thereafter  Proactive financial relief programs to mitigate adverse impact from COVID-19 pandemic Relieve Refine Revive > Proactive monitoring & customized > Broad-based financial relief measuresmeasures Converge to new normal

 Proactive relief measures to  Proactive monitoring with an  Lending business expansion with customers with adverse impact enhancement on data-driven risk- new lending capability leveraging from COVID-19 outbreak based analytics to better identify data analytics customer at risk and appropriate financial relief measure

Can pay Financial relief measures: Phase I

For Business . 6-month payment period (Payment Holiday or known locally as Debt Holiday) Proactive . Financial aids programs i.e. payment customer Can’t pay deferral of principal and/or interest management . Liquidity injection programs such as BOT with data- soft loans, etc. driven risk- Provide For Individual based customer appropriate relief . Reduce minimum payment for unsecured measures / products analytics restructuring / . Payment deferral of principal and/or NPL interest

62 Proactive risk management to counter economic slowdown and high household debt  Continue to deploy proactive credit portfolio / risk management / asset quality management to mitigate an adverse impact from prolonged economic recovery and high household debt

Corporate Business SME Business Retail Business

 Focus on high potential industries  Selective on quality of customers  Selective on high-value less impacted by economic  Proactive risk management by customers regarding prevailing slowdown visiting customers; raise BOT regulations and the Bank’s  Closely monitor customers in high productivity of sales teams and policy risk industries and supply chains relationship managers  Proactive and efficient collection  Actively monitor early warning  Efficient collection process process based on the Bank’s signs models   Promptly respond to adverse Analyze behavior regularly to events identify weak spots

KBank: Financial Aid Programs during COVID-19 for Businesses  Offer financial aid programs to help SME and retail customers during the COVID-19 pandemic 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Credit May – Oct 20 Debt Holiday* 6-month grace period on principal and interest payments for Adjustment SMEs with credit lines below Bt100mn (Automatic adjustment) (Payment deferral Feb 20 – Jun 21 Up to 12-month grace period on principal payments for SMEs and/or interest (Registration has been ended on June 30, 2020) rate reduction) Apr – Dec 20 “Generous (Business) Owners-Empathetic Creditor” program: a cooperative effort between KBank and business operators to reduce interest rates for 6 months

Apr 21 BOT Asset Warehousing**: Debt restructuring through Asset Warehousing with buy-back options within 3-5 years Loans for GSB Soft Loans: Up BOT Soft Loans*: Up to 7-year terms for SMEs with credit limit below Bt500mn, at BOT Soft Loans supported by TCG credit to 5-year terms with 2% for 2 years and 6 months interest free SMEs Bt20mn loan limit for guarantee scheme**: Up to 7-year terms, at average each SME, at 2% for 2 interest rate of 5% p.a. for five years (2% for the first 2 years years) with 6 months interest free Loans guaranteed by Thai Credit Guarantee Corporation (TCG): with up to 7-year terms “Zero Interest-rate Loan to Retain SME Staff” program: 0% interest rate with 10- year terms and 1- year grace period on debt repayments for the first year Loans against mutual funds: Short-term loans for mutual fund holders; mutual fund units can be used as collateral, with a limit from Bt30,000 to 80% - 95% of the funds' NAV, at 2% to 5.5% interest for 6-month to 1-year period

Note: * According to the Emergency Decree on Financial Assistance to Enterprises affected by COVID-19 (B.E. 2563), dated April 18, 2020. ** According to the Emergency Decree on Financial Rehabilitation and Recovery to support Businesses affected by COVID-19 (B.E. 2564), dated April 19, 2021. 64 KBank: Financial Aid Programs during COVID-19 for Individuals  Offer financial aid programs to help SME and retail customers during the COVID-19 pandemic 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 The First Phase Credit card**: Reduce minimum installment payment to 5% in 2020-21 and 8% in 2022, returning to 10% in 2023 • Payment deferral Xpress Loan and KLeasing: • Payment reduction 3-month grace period on principal and • Interest rate interest payments reduction Credit card and Xpress Cash: Grace period on principal payments

Housing Loan: Up to 12-month grace period on principal payments or 50% reduction in installment payments for up to 12 months The Second Lower interest rate ceiling**: Phase for Credit Card (from 18% to 16%); Xpress Cash and Xpress Loan (from 28% to 25%); KLeasing (from 28% to 24%) Individual* Credit card, Xpress Cash, and Xpress Loan: 6-billing cycle grace period on principal (Option 1) • Payment deferral Xpress Loan: 30% reduction in installment payments for 6 billing cycles, at special interest rate of 22% (Option 2) • Payment reduction KLeasing Hire Purchase and Financial Lease: 50% reduction in installment payments for 6 months and extension of term • Interest rate loan for another 3 months (Option 2) reduction Xpress Loan (Long-Term Loan) and Housing Loans: • Term loan • Grace period on principal for 3 months (Option 1); with 0.1% reduction in interest rate for 3 months for HL extension • Reduction in installment payments for 3 months (Option 2): 30% for XPL and 50% for HL • Grace period on principal and interest payments for 3 months (Option 3) * Customers can choose KLeasing Hire Purchase and Financial Lease: Grace period on principal and interest payments for 3 only one option months depending on their debt service capability Credit card and Xpress Cash: Change to 48-month term loan, at special interest rate of 12% for credit card and 22% for Xpress Cash (card will be closed) (Option 2) (to Jul25)

KLeasing Car to cash (Car registration Loan): 30% reduction in installment payments with maximum interest rate < 22%

Debt Debt Consolidation: Consolidate KBank’s loans, with Credit Cards, Xpress Cash and Xpress Loan, by utilizing existing Consolidation Home Loan’s collateral for new loan from debt consolidation’s collateral

Note: * According to BOT’s announcement on January 12, 2021, BOT allows banks to help SME and retail borrowers by extending current measures from December 30, 2020 to June 30, 2021, such as second phase of COVID-19 relief measures for retail and assistance guidelines after debt holiday for SMEs. BOT also urges banks to provide financial assistance to all customers by taking into account the risk of customer. ** Automatic adjustment for all customers 65

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)

66 1Q21 Performance Highlights  1Q21 net profit increased 44.10% YoY, mainly due Consolidated 2019 2020 1Q20* 2Q20 3Q20 4Q20 1Q21 to lower expected credit losses and higher EBPT Net Profit (Bt bn) 38.73 29.49 7.38 2.18 6.68 13.26 10.63  1Q21 EBPT increased 14.22% YoY, mainly due to Profitability higher non-interest income from mark to market of - NIM 3.31% 3.27% 3.49% 3.22% 3.17% 3.08% 3.16% financial assets, net fee income and lower - ROE*** 9.90% 7.10% 7.26% 2.15% 6.59% 12.74% 9.57% operating expenses - ROA 1.20% 0.85% 0.87% 0.25% 0.75% 1.47% 1.14%  - YTD Loan growth 4.59% 12.13% 2.05% 6.23% 7.73% 12.13% 2.56% 1Q21 loans grew 12.69% YoY, mainly from retail - YoY Loan growth 4.59% 12.13% 6.70% 10.01% 10.68% 12.13% 12.69% lending using data analytics capability, SMEs - YoY Net fee income growth (3.61%) (10.17%) 1.38% (12.02%) (17.46%) (11.75%) 6.56% (mainly from COVID-19 relief measures), and - YoY Non-interest income growth 1.51% (20.65%) (18.55%) 3.36% (39.78%) (23.82%) 19.30% corporate business Cost control  NIM was 3.16%, decreasing YoY due to lower - Cost to income 45.32% 45.19% 45.94% 38.36% 44.75% 52.10% 41.30% yield on loans from interest rate cut, deterioration Asset quality of asset quality, and loans in relief measures - NPL ratio 3.65% 3.93% 3.86% 3.92% 3.95% 3.93% 3.93% despite lower cost of deposit from savings rate cut - Credit Cost 1.74% 2.05% 2.35% 3.87% 2.02% 0.12% 1.52% - Coverage ratio 148.60% 149.19% 138.66% 155.68% 161.12% 149.19% 153.98%  1Q21 net fee income rose 6.56% YoY, mainly from Loans to Deposits 96.62% 95.73% 92.78% 92.15% 94.85% 95.73% 95.91% fund management business and brokerage fees Tier 1 Ratio 16.19% 16.13% 15.17% 15.38% 15.74% 16.13% 15.80%  1Q21 cost to income ratio was 41.30%, CAR 19.62% 18.80% 18.53% 18.09% 18.45% 18.80% 18.44% decreasing YoY mainly due to managed expenses

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 in economic slowdown; cost to income will rise Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General seasonally in 2H21 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  1Q21 NPL ratio at 3.93%, with 153.98% coverage 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, ratio 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  1Q21 capital base remained adequate * The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions’ announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity. ** 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

Consolidated Financial Statements 2019 2020 1Q20* 2Q20 3Q20 4Q20 1Q21 Interest income 130,178 127,592 33,779 31,954 31,386 30,473 31,972 Interest expenses 27,490 18,570 5,697 4,872 4,131 3,870 3,840 Interest income - net 102,688 109,022 28,082 27,082 27,255 26,603 28,133 Fee and service income 50,580 45,699 12,335 10,930 10,854 11,580 12,615 Fee and service expenses 13,840 12,695 3,485 2,883 3,048 3,278 3,184 Fee and service income - net 36,740 33,004 8,850 8,047 7,805 8,302 9,431 Gain (Loss) on financial instrument measured at FVTPL - 8,119 (300) 4,723 518 3,178 1,812 Gain (Loss) on trading and foreign exchange transactions 8,362 ------Gain (Loss) on investments 8,412 1,308 144 205 364 595 116 Net premium earned 80,490 72,129 15,796 18,092 17,887 20,354 16,686 Total operating income 241,144 227,456 53,650 59,306 54,677 59,823 57,212 Underwriting expenses 80,653 72,565 15,597 18,132 17,923 20,912 17,184 Total operating income - net 160,491 154,891 38,053 41,174 36,754 38,911 40,028 Total other operating expenses 72,729 69,997 17,481 15,796 16,447 20,272 16,531 Expected Credit Loss - 43,548 11,872 20,192 10,815 669 8,650 Impairment loss of loans and debt securities34,012------Operating profit before income tax expenses 53,750 41,347 8,699 5,186 9,491 17,970 14,846 Income tax expenses 10,309 7,656 1,349 901 2,048 3,358 3,035 Net profit attributable: Equity holders of the Bank 38,727 29,487 7,375 2,175 6,679 13,258 10,627 Non-controlling interest 4,714 4,203 (25) 2,110 765 1,353 1,184 Statements of Financial Position (Bt mn) 2019 2020* 1Q20* 2Q20 3Q20 4Q20 1Q21 Loans to customers (less deferred revenue) 2,001,956 2,244,821 2,043,093 2,126,753 2,156,650 2,244,821 2,302,352 Total Assets 3,293,889 3,658,798 3,483,527 3,585,800 3,545,648 3,658,798 3,767,115 Deposits 2,072,049 2,344,998 2,202,112 2,307,997 2,273,850 2,344,998 2,400,615 Total Liabilities 2,840,174 3,167,512 3,033,814 3,135,108 3,089,066 3,167,512 3,260,149 Total Equity attributable to equity holders of the Bank 406,358 439,670 406,789 402,386 408,716 439,670 452,029

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. * The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions’ announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity.

68 Earnings Before Provision and Tax (EBPT) and Net Profit March 2021 (Consolidated)

EBPT Net Profit

(Bt bn) (Bt bn) 100 90.48 87.14 87.76 84.90 60 80 38.46 38.73 40 34.34 60 29.49 40 23.50 20 10.63 20 0 0 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21  1Q21 EBPT grew 14.22% YoY, mainly from higher non-interest income from mark to market of financial assets, net fee income and lower operating expenses  1Q21 net profit increased 44.10% YoY, mainly due to lower expected credit losses and higher EBPT

2017 2018 2019 2020 1Q20* 1Q21 4Q20 1Q21 EBPT (Bt bn) 90.48 87.14 87.76 84.90 20.57 23.50 18.64 23.50 EBPT Grow th (% YoY) 1.05% (3.70%) 0.72% (3.27%) (4.24%) 14.22% (9.31%) 14.22%

Net Profit (Bt bn) 34.34 38.46 38.73 29.49 7.37 10.63 13.26 10.63 Net Profit Grow th (% YoY) (14.53%) 12.00% 0.70% (23.86%) (26.58%) 44.10% 50.63% 44.10%

Note: * The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions’ announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity.

Interest Income - net March 2021 (Consolidated) Interest Income and Interest Expenses Interest Income - net

(Bt bn) 130.18 (Bt bn) 102.69 109.02 140.00 119.34 123.92 130.18 94.16 98.54 100.00 120.00 100.00 80.00 80.00 60.00 60.00 27.49 31.97 40.00 28.13 40.00 25.18 25.38 18.57 20.00 3.84 20.00 0.00 0.00 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21 Interest Income Interest Expenses Interest Income - net

 1Q21 net interest income slightly rose 0.18%, mainly due to loan growth, while NIM dropped in line with interest rate trend

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Interest Income (Bt bn) 119.34 123.92 130.18 127.59 33.78 31.97 30.47 31.97 Interest Expenses (Bt bn) 25.18 25.38 27.49 18.57 5.70 3.84 3.87 3.84

Interest Income - net (Bt bn) 94.16 98.54 102.69 109.02 28.08 28.13 26.60 28.13 Interest Income - net (% Growth YoY) 5.00% 4.65% 4.21% 6.17% 11.21% 0.18% 4.04% 0.18%

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.

70 Non-interest Income and Structure March 2021 (Consolidated) Non-interest Income to Average Assets Non-interest Income Structure Net Premium Earned and Underwriting Expenses (%) (Bt bn) 120 99.79 91.43 4 62.70 100 93.85 87.90 80.49 80.65 3 65 (-2%) 56.95 57.80 80 72.13 72.57 2.18 2% 1.88 1.79 (-9%) (+2%) 60 2 1.32 1.28 3% 3% 40 55 45.87 20 16.69 17.18 1 (-21%) 0 4% 0 45 2017 2018 2019 2020 1Q21 66% Net Premium Earned Underwriting Expenses 2017 2018 2019 2020 1Q21 64% 35 67% Net Premium Earned – net Non-interest Income Ratio 72% 25 (Bt bn) 11.89 (%) 5% (+19% YoY) 14 60 15 9% 6% 0.1% 3% 4% 50 40 0.3% 15% 3% 9 5.94 37 36 6% 0.1% 5% 5% 3.54 40 30 30 3% 79% 5 4 30 13% 16% 14% 18% 1% 7% -0.4% 15% -1% -0.16 -0.44 -0.50 -4% -1 20 -0.3% -1% 2017 2018 2019 2020 1Q21 10 -5 2017 2018 2019 2020 1Q21 Net Premium Earned - net Other Operating Income Fee and Service Income - net 0 Contributions from MTL's insurance business to KBank 2017 2018 2019 2020 1Q21 Net Premium Earned - net Dividend Income include non-interest income (e.g. net-premium earned-net), Share of Profit from Investments on Equity Method Gain on Investment and interest income (e.g. interest income from investment portfolio); however, all income sources from MTL will be netted with non-controlling interests.

2017 2018 2019 2020 1Q20* 1Q21 4Q20 1Q21 Non-interest Income (Bt bn) 62.70 56.95 57.80 45.87 9.97 11.89 12.31 11.89

Non-interest Income Growth (%YoY) (1.62%) (9.17%) 1.51% (20.65%) (18.55%) 19.30% (23.82%) 19.30% Non-interest Income Ratio (%) 39.97 36.62 36.02 29.61 26.20 29.72 31.63 29.72

Note: - Non-interest Income Ratio = Non-interest Income/Total Operating Income - net - The Bank and its subsidiaries have adopted TFRIC 13: Customer Loyalty Programmes since January 1, 2014 onwards - Net Premium Earned - net = Net Premium Earned less Underwriting Expense * The Bank restated the 1Q20 financial statements from the reclassification of investment in fund/ REIT to investments in FVOCI to comply with the Federation of Accounting Professions’ announcement on 25 June 2020 and reclassification some items which did not impact to total assets, total liabilities and total equity.

Net Fee Income March 2021 (Consolidated)

Net Fee Income Net Fee Income to Net Total Operating Income

(Bt bn) (%) 30 26% 41.31 25% 38.12 36.74 23% 24% 40 33.00 21% 20 30 20 9.43 10 10

0 0 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21

 1Q21 net fee income rose 7% YoY, mainly from fund management business and brokerage business.  Net fee income to net total operating income was 23.56% in 1Q21.

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Fee Income (Bt bn) 51.76 51.19 50.58 45.70 12.34 12.62 11.58 12.62 Fee Income-net (Bt bn) 41.31 38.12 36.74 33.00 8.85 9.43 8.30 9.43 Fee Income Growth (%YoY) 6.43% (1.10%) (1.19%) (9.65%) 1.53% 2.27% (11.10%) 2.27% Net Fee Income Growth (%YoY) 6.07% (7.72%) (3.61%) (10.17%) 1.38% 6.56% (11.75%) 6.56% Net Fee Income to Net Operating Income Ratio (%) 26.33 24.52 22.89 21.31 23.26 23.56 21.34 23.56

Note: On the consolidated basis, Bancassurance fees are not included in net fee income since November 30, 2009, due to the elimination of inter-company transactions (the accounting treatment from the Muang Thai Group Holding consolidation)

72 Net Fee Income Structure March 2021 (Consolidated) Net Fee Income by Product

Others 11% Credit Card Business Credit Card Business (mainly from credit card, merchant fees) Brokerage 12% business Transaction services (such as ATM & debit cards, bill payments, money transfers, etc.) 8% Commercial credit (mainly from commercial credit related fees) Transaction services Cash management (such as fees from payroll accounts) Fund 18% Trade finance Management Fund Management Business (mainly from mutual fund and securities service fees) Business Trade Commercial 26% finance credit Brokerage business 16% 6% Others (such as capital market business, etc.) Cash management 3%

Loan Related and Non-loan Related Fees - net Note: - On the consolidated basis, Bancassurance fees are not included, due to the Loan elimination of inter-company transactions (the accounting treatment from the related Muang Thai Group Holding consolidation) 13% - 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 Non-loan - The Bank and its subsidiaries have adopted new accounting standards (TFRS 9: related Financial Instruments) since January 1, 2020 onwards, some financial statements 87% and financial ratios are not comparable with previous years’ financial figures, which were based on the prior accounting standards (non-TFRS9)

Other Operating Expenses March 2021 (Consolidated)

Other Operating Expenses Structure

(Bt bn) 72.73 70.00 70 66.37 68.35 29% Others 60 28% 29% 27% 0.2% 50 0.2% 0.2% 0.2% 7% Directors' remuneration 7% 7% 7% 40 18% 19% 19% 17% 30 16.53 Taxes & Duties 20 47% 24% Premises & Equipment 46% 46% 46% 0.1% 8% 10 16% 0 51% Employee's expenses 2017 2018 2019 2020 1Q21

 1Q21 other operating expenses decreased 5.44% YoY, due to expense management during economic slowdown; continuing focus on cost and productivity improvements and new investments for future growth

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Other Operating Expenses (Bt bn) 66.37 68.35 72.73 70.00 17.48 16.53 20.27 16.53

Other Operating Expenses Growth (%YoY) 3.94% 2.98% 6.41% (3.76%) 9.19% (5.44%) (4.27%) (5.44%)

74 Loan Structure and Loan Growth March 2021 (Consolidated, TFRS 8: Operating Segments*)

Loan Portfolio Structure Loan Portfolio Bt bn 2,245 2,302 ConsolidatedAmount (Bt bn) Y2020 1Q21 1Q21 Y2021 1,803 1,914 2,002 Dec 20 Mar 21 Loan Growth Loan Growth Yield Range Loan Growth Target 2,000 36% 36% Corporate 36% 34% (%) (%) (%) (%) 1,500 35% SME Corporate Loans 814 822 17.7% 1.0% 3-5% 1-3% 33% 33% 1,000 36% 35% 34% Retail SME Loans 733 757 9.1% 3.3% 5-7% 2-4% Retail Loans 638 660 14.8% 3.5% 5-7% 11-13% 500 24% 28% 28% 28% Others 25% Other Loans 60 63 (27.8%) 4.2% 5% 4% 4% 3% 3% 0 Total Loans 2,245 2,302 12.1% 2.6% 4.6% 4-6% 2017 2018 2019 2020 1Q21 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. Loan Growth (% YoY) Loan by Retail Products (All Segments)

(%) (Amount in Bt bn) Dec 20 Mar 21 Y2020 1Q21 % Portion 15 Loan Loan to 12.13 12.69 Growth Growth Total Loan 10 (%) (%YTD) 6.20 6.17 Housing Loans 390 407 19.9 4.4 17.7 4.59 5 Credit Cards 91 84 5.8 (7.3) 3.7 Consumer Loans 91 102 17.1 12.7 4.4 0 KLeasing 115 114 0.1 (0.7) 5.0 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Loans (Bt bn) 1,803 1,914 2,002 2,245 2,043 2,302 2,245 2,302 Loan Growth (% YoY) 6.20% 6.17% 4.59% 12.13% 6.70% 12.69% 12.13% 12.69% Loan Growth (% YTD) 6.20% 6.17% 4.59% 12.13% 2.05% 2.56% 12.13% 2.56% 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. 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: Loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans), and other loan types - Housing Loans: KBank’s housing loans to retail customer segments; Credit Cards: KBank’s credit card loans to all eight customer segments; Consumer Loans: KBank’s consumer loans to retail customer segments; KLeasing: KLeasing’s loans to all eight customer segments

Loan Portfolio Breakdown by Industry, Currencies, and Interest Rate December 2020 (Consolidated) Loan Portfolio by Industry* By Residency of Borrowers (December 2020)*

(Bt bn) 2,500 Foreign 2,245 2,002 2.7% 1,914 16.8% 2,000 1,803 Others 1,698 16.3% 1,610 14.6% 1,527 14.3% 17.2% Housing Loans 1,500 1,439 14.2% 1,327 14.5% 14.2% 14.9% 16.2% 15.7% 14.2% 11.6% 14.6% 14.2% Utilities & Services 12.5% 14.8% 13.7% 13.5% 12.8% 15.5% 14.7% 1,000 16.0% 13.2% 8.9% 8.6% 13.0% 12.5% 8.5% 8.9% Real Estate & Construction 13.0% 6.6% 6.8% Domestic 6.7% 6.9% 6.5% Manufacturing & Commerce 97.3% 500 47.3% 46.2% 46.2% 41.7% 48.9% 48.9% 48.1% 49.1% 48.1% Agricultural and Mining 2.4% 2.3% 2.0% 1.9% 2.1% 1.9% 1.8% 1.7% 1.6% 0 2012 2013 2014 2015 2016 2017 2018 2019 2020

By Maturity of Interest Repricing (December 2020)*

Definition of Loans 1) by industry = Gross loans = Loans to customers less deferred revenue > 6 months Others 2) by currency = Loans to customers and AIR - net 16.2% 0.5% 3) by maturity of interest repricing = Loans to customers less deferred revenue

Loans by Bangkok and Metropolitan vs. Upcountry <=6 months Proportion of KBank's Outstanding Loans 2014 2015 2016 2017 2018 2019 2020 1Q21 10.4% Bangkok and Metropolitan 64% 64% 63% 64% 62% 59% 58% 63% Immediate Upcountry 36% 36% 37% 36% 38% 41% 42% 37% repricing 72.9% Note: * The information on loans breakdown by industry, residency of borrowers, and maturity of interest repricing are disclosed on half year basis

76 Asset Quality March 2021 (Consolidated) NPL Ratio Coverage Ratio Classified Loans* (Bt bn) 4Q20 1Q21 (%) (%) Stage 1 Performing 1,951 2,004 200 5 148.45 160.60 153.98 Stage 2 Under-performing 201 206 3.65 3.93 3.93 148.60 149.19 4 3.30 3.34 150 Stage 3 Non-performing 103 105

3 100 Total 2,256 2,315 2 1 50 0 0 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21

 NPL ratio in 1Q21 was at 3.93%, with a coverage ratio of 153.98%  COVID-19 negatively affected asset quality; overall NPL situation remains manageable; while, asset quality is closely monitored and constantly reviewed

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 NPL Ratio (%) 3.303.343.653.933.863.933.933.93 Coverage Ratio (%) 148.45 160.60 148.60 149.19 138.66 153.98 149.19 153.98

SML to Total Loans Ratio (%)* 2.59 1.90 2.80 - - - - -

Loans with significant increase in credit risk (%) - - - 7.80 9.32 7.88 7.80 7.88

Note: * Loans to customers and accrued interest receivables: Under TFRS 9, the classified loans are defined by 3 stages based on incremental risks, which cannot directly compare with the previous number these were defined by days past due.

Expected Credit Loss and Credit Cost March 2021 (Consolidated) Impairment Loss of Loans Expected and Debt Securities Credit Loss Credit Cost

(Bt bn) (bps)

50 41.81 43.55 350 34.01 300 239 40 32.53 250 205 175 174 30 200 152 20 150 8.65 100 10 50 0 0 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21

 1Q21 credit cost was 152bps; conservative assumptions and prudent financial policy maintained amid high uncertainties related to COVID-19. Relief measures helped limit short-term impact on asset quality; asset quality is closely monitored and constantly reviewed

2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Expected Credit Loss (Impairment Loss of Loans and Debt Securities) (Bt bn) 41.81 32.53 34.01 43.55 11.87 8.65 0.67 8.65

Credit Cost (bps) 239 175 174 205 235 152 12 152

78 Bad Assets Resolution March 2021 (Consolidated) Write-offs NPL Portfolio Sales (Bt bn) 26.4  2007: KBank and Phethai AMC sold NPLs totaling Bt11.4bn to Standard 28 Bank Asia Limited and Morgan Stanley Emerging Markets Inc. at Bt7.6bn 24 21.5 and Bt3.8bn, respectively 19.9  2008-1Q16: NPLs continued to decline without bulk NPL sales 20  2016: KBank sold NPLs worth Bt6.4bn (Bt4.9bn in 2Q16 and Bt1.5bn in 16 4Q16) to JMT Network Services PCL 10.7  2017: KBank sold NPLs worth Bt8.4bn in 4Q17 to asset management 12 10.3 10.1 9.6 companies 7.3  2018: KBank sold NPLs worth Bt15.4bn (Bt7.3bn in 1Q18, Bt5.4bn in 3Q18, 8 5.5 5.0 and Bt2.7bn in 4Q18) to asset management companies 4.3 3.9 4 2.4  2019: KBank sold NPLs worth Bt7.1bn (Bt4.3bn in 1Q19 and Bt2.8bn in 3Q19) to asset management companies 0  2020: KBank sold NPLs worth Bt6.8bn (Bt4.9bn in 1Q20 and Bt1.9bn in 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 4Q20) to asset management companies 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

Outstanding Foreclosed Properties Sales of Foreclosed Properties

(Bt bn) (Bt bn) 31.6 10 35.0 31.1 27.9 8 30.0 24.9 25.0 5.4 5.6 19.6 6 5.0 4.8 20.0 16.7 17.4 15.9 15.1 16.1 4.1 4.2 4.3 13.4 15.0 12.5 12.1 4 3.0 3.3 2.8 2.9 2.4 10.0 2 1.2 5.0 0.0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21

TFRS 9: Investment in Securities Portfolio and Structure March 2021 (Consolidated) Instrument Type Financial Assets Classification Holding Type TFRS 9: Asset Type

(Bt bn) (Bt bn) 1,000 928 1,000 824 0.3% 777 928 900 777 11% 0.3% 0.3% 0.4% 0.3% 663 824 800 663 10% 800 0.1% 0.1% 14% 14% 0.2% 700 536 0.3% 15% 536 0.1% 0.7% 10% 15% 0.2% 600 0.4% 7% 18% 600 0.7% 20% 0.2% 500 12% 16% 56% 51% 9% 18% 0.5% 400 15% 54% 400 56% 300 57% 200 66% 53% 54% 63% 43% 64% 38% 100 200 43% 32% 40% 0 4% 3% 2% 6% 2017 2018 2019 2020 1Q21 0 6%

Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) 2017 2018 2019 Trading Avai lable-for-sal es 2020* 1Q21* Equity Investment Held-to-maturity General Foreign Bonds Inv estments Subsidiaries Investment in Receivables Investments Subsidiaries Corporate Bonds Amortized cost Government & State Enterprise Bonds Fair v alue through OCI Fair v alue 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.

2016 2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Investment Portfolio (Bt bn) 650 536 663 777 824 788 928 824 928

Investment Portfolio (% Grow th YoY) 36.10% (17.52%) 23.51% 17.22% 6.15% 11.50% 17.85% 6.15% 17.85%

80 Deposits Growth and Loans to Deposits Ratio March 2021 (Consolidated)

Deposits & B/E Loans to Deposits Ratio (Bt bn) 2,700 100% 2,345 2,401 2,400 96.6% 2,072 96.0% 95.9% 2,100 1,879 1,995 95.7% 95.9% 1,800 95% 1,500 1,200 900 90% 600 300 0.3 0 0 0 0 0 85% 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21 Deposits B/E Loans to Deposits  Deposits and Loans to Deposits Ratio is in line with peers.

2016 2017 2018 2019 2020 1Q20 1Q21 4Q20 1Q21 Deposits (Bt bn) 1,795 1,879 1,995 2,072 2,345 2,202 2,401 2,345 2,401 Deposits (% YoY) 5.2% 4.7% 6.2% 3.9% 13.2% 11.3% 9.0% 13.2% 9.0% Deposits (% YTD) 5.2% 4.7% 6.2% 3.9% 13.2% 6.3% 2.4% 13.2% 2.4% Loans to Deposits Ratio (%) 94.6% 96.0% 95.9% 96.6% 95.7% 92.8% 95.9% 95.7% 95.9%

Funding Structure and Interest Rate Movement March 2021 (Consolidated) Funding Structure Deposit Structure

(Bt bn) 2,345 2,401 (Bt bn) 2,608 2,502 2,400 1,995 2,072 2,800 2,194 2,236 5% 19% 2,019 4% 2,000 1,879 20% 2,400 3% 24% 3% 6% 4% 22% 2,000 3% 1,600 21% 1,600 4% 3% 4% 1,200 75% 75% 1,200 93% 92% 71% 93% 91% 94% 72% CASA 800 800 73% = 81% 400 400 0 6% 6% 6% 6% 6% 2017 2018 2019 2020 1Q21 0 2017 2018 2019 2020 1Q21 Deposits ST and LT Borrowings Interbank and Money Market Current Savings Term

KBank Interest Rate Movement (Retail customers) ST and LT Borrowings (%) Deposit rates (%) (Mar 6, 2021) 8 Savings 0.25 (Bt bn) 7 100 82 6 Fixed 3M-12M 0.32-0.40 71 71 69 69 5 Fixed 24M-36M 0.45-0.65 75 100% 100% 4 84% 99% 100% Lending rates (%) (May 22, 2020) 50 3 2 MLR 5.47 25 0.17% 1 MOR 5.84 0.38% 16% 1.32% 0.26% 0 0.19% 0 MRR 5.97 2017 2018 2019 2020 1Q21 2014 2015 2016 2017 2018 2019 2020 1Q21 ST Borrowing B/E & Others LT Borrowing

MLR Savings Fixed3M

82 Long-term Senior/Subordinated Debentures

Issue Maturity Interest Rate Interest Name Type Feature Amount Payment Credit Rating Date Years (Per annum) period

Long-term Subordinated Debentures

Additional Tier 1 Subordinated Perpetual Semi- 14/10/2020 Unsecured USD500mn - 5.275% Ba1 by Moody’s Notes* NC5Y annually

Tier II Subordinated Notes 12 years Semi- Baa3 by Moody’s 02/10/2019 Unsecured 12NC7 USD800mn 3.343% due 2031* (02/10/2031) annually BB+ by Fitch Ratings

Subordinated Instruments intended to qualify as Tier 2 Capital of 10.5 years 14/07/2016 Unsecured 10.5NC5.5 Bt7,500mn 3.50% Quarterly AA- (tha) by Fitch Ratings KASIKORNBANK PCL No.1/2016 (14/01/2027) due 2027

Long-term Senior Debentures

5 Years 07/12/2018 Floating Rate Notes due 2023* Unsecured - USD15mn 3m Libor+0.95% Quarterly - (07/12/2023)

Floating Rate Notes due 2023* 5 Years 30/10/2018 Unsecured - USD100mn 3m Libor+0.95% Quarterly - (Sustainability Bond) (30/10/2023)

Baa1 by Moody’s 5.5 Years Semi- 12/01/2018 Senior Unsecured Notes due 2023* Unsecured - USD400mn 3.256% BBB+ by S&P (12/07/2023) annually BBB by Fitch Ratings

Baa1 by Moody’s 5.5 Years Semi- 06/10/2016 Senior Unsecured Notes due 2022* Unsecured - USD400mn 2.375% BBB+ by S&P (06/04/2022) annually BBB by Fitch Ratings

Note: *The issued notes are drawn from the Bank’s USD2.5bn Euro Medium Term Note Programme (EMTN)

KBank: The wholly-owned subsidiaries, and Muang Thai Life Assurance

84 The wholly-owned subsidiaries of KBank: Business Profile and Aspiration March 2021

KAsset KResearch KSecurities KLeasing KF&E EST. 1992 EST. 1995 EST. Jul 2005 EST. Aug 2005 EST.1990

Company KASIKORN ASSET KASIKORN RESEARCH KASIKORN LEASING KASIKORN FACTORY AND KASIKORN SECURITIES PCL Name MANAGEMENT CO., LTD. CENTER CO., LTD. CO., LTD. EQUIPMENT CO., LTD.

A leader in fund ‒ Professional in providing Professional in providing a Professional in providing Professional in providing a management business knowledge in economics, complete range of excellent three core products: hire complete range of (i.e. mutual funds, business, money, and financial solutions and purchase, financial lease, machinery and equipment Company provident funds, and banking services, including investment and floor plan leasing services Profile private funds) ‒ Only research house banking, securities which is an affiliate of a underwriting, and securities bank brokerage

Asset Size Bt3.04bn Bt0.14bn Bt32.52bn Bt113.80bn Bt25.56bn

Market Share 18% N/A 4% (#10) 7%* 17%

Top of mind research house Maintain leading position in Maintain top tier position for media and for the clients Maintain a good asset 2021 Targets Maintain top tier position securities business under and focus on good asset of KBank and its wholly- quality portfolio local bank parent quality owned subsidiaries Provide complete range 3-year of financial solutions and Maintain leading position in Maintain top tier position Top of mind research house Top of mind securities firm Aspiration maintain good asset equipment leasing industry quality

* KLeasing’s Market Share as of Y2020

The wholly-owned subsidiaries of KBank: 1Q21 Key Operating Performance March 2021

KAsset KResearch KSecurities KLeasing KF&E EST. 1992 EST. 1995 EST. Jul 2005 EST. Aug 2005 EST.1990 1Q2021 Key Assets Under Management Most quoted research - Trading volume: Bt419bn Outstanding loans: Outstanding loans: Operating (AUM): Bt1.51trn house in the media - Number of customers grew Bt114.14bn (-0.22% YoY) Bt25.53bn (+11.10% YoY) Performance (+11.59% YoY) 55% YoY

The wholly-owned subsidiaries of KBank: Net Profit

(Bt bn) 5.99 6 5.39 5.60  Net profit continues to rise from the same period of 4.91 5 4.56 2020, increasing 16% YoY, along with synergy among 3.85 KBank and its wholly-owned subsidiaries 4 3.66 3.23 3 2.25 2 1.78

0 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21

86 KAsset Highlights in 1Q21 March 2021 Industry Outlook:  2021 industry AUM at Bt8.47trn, increasing 24.05% YoY AUM (KAsset vs. Industry)  KAsset AUM at Bt1.51trn, increasing 11.59% YoY (Bt bn) (Bt bn) 10,000 2,000 8,279 8,474 7,737 8,000 6,959 7,173 KAsset Highlights: 6,368 1,500 5,534 1,477 1,507 6,000 5,118 1,380 1,431  Ranked #1 in Mutual Fund and #2 in Provident Fund 4,253 1,240 1,303 1,000 3,633 1,132 4,000 1,090 2,883 3,015 946 2,576 851 with market share of 21.5% and 15.6%, respectively 742 500 2,000 635 509  Ranked #2 in total AUM with market share of 17.8% ‐ ‐ 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21  Mutual fund accounts for 74% of KAsset AUM

Industry KAsset *2018-YTD include REITs Market Share by AUM KAsset AUM Breakdown by Type 37.4 (%) 32.1 32.3 Provident 29.9 30.7 30.0 Fund 20.5 20.721.4 13% 19.518.719.218.5 17.8 19.8 19.3 Private Fund 12.612.1 15.0 11.810.310.810.710.1 11.6 11.3 10.5 13% 6.7 6.5 6.5 5.8 4.9 Mutual Fund 0.0 74% KAsset SCBAM KTAM MFC BBLAM Other

2016 2017 2018 2019 1Q21

KResearch Highlights in 1Q21 March 2021

KResearch Highlights: Number of News Quotes  The most quoted private research house 20,000 18,047 in Thailand 18,000  Top of mind research house for the 16,000 14,532 public, including clients of KBank and its 14,000 wholly-owned subsidiaries 12,000 11,500

10,000 8,452 7,672 7,910 8,000

6,000 4,633 4,000

2,000

- 2015 2016 2017 2018 2019 2020 1Q21

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)

88 KSecurities Highlights in 1Q21 March 2021 Industry Outlook:  1Q21 industry trading volume* was Trading Volume (KSecurities vs. Industry)* Bt10.61trn, increasing 42% YoY (Bt bn) (Bt bn) 30,000 29,829 2,000  KS trading volume was Bt419bn 24,790 1,800 25,000 22,937 22,442 1,600 21,551 21,899 KSecurities Highlights: 20,345 1,400 20,000 19,549 1,119 1,200  KS ranked #10, with 3.95% market share 13,772 1,296 1,251 15,000 12,377 860 868 1,000 12,486 812 739 683 10,610 800  Majority of revenue came from brokerage 10,000 7,967 8,544 7,962 8,640 817 600 430 411 400 5,000 207  Number of customers account grew 55% 117 200 41 91 419 0 0 YoY to 262,351 customers in 1Q21 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21

Total Industry Trading Volume KS Trading Volume Market Share by Trading Volume* KSecurities Revenue by Business

(%) 10.0 Investment Banking 6.8 6.1 6.16.3 5.4 5.7 12% 4.7 4.6 4.24.9 5.0 4.0 4.1 3.5 3.8 3.7 3.0 3.8 3.73.4 3.6 3.1 2.9 3.0 2.3 2.9 2.7 2.1 1.9 2.4 2.5

0.0 Brokerage and other KS SCBS KTZ BLS TNS MBKET 88% 2017 2018 2019 2020 1Q2021

Note: * Industry trading volume excluding proprietary trades 89

KLeasing Highlights in 1Q21 March 2021

Industry Outlook: KLeasing vs. Industry  1Q21 industry car sales totaled 194,137 units,

(Thousand decreasing 2.96% YoY Units) (Bt.bn.) 1,500 1,331 150 1,042 1,008 792 KLeasing Highlights: 872 1,000 882 800 769 114.1 100 108.1 114.8 114.9  1Q21 KLeasing loans totaled Bt114.14bn, 97.1 89.2 89.8 88.7 90.7 decreasing 0.22% YoY 500 50 194  1Q21 KLeasing NPL ratio was 1.30%, lower than - - 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 the Thai commercial bank average ratio Total Car Sales in Thailand Kleasing Outstanding Loans Market Share by Total Outstanding Loans (%)* KLeasing Outstanding Loans Breakdown**

50 (% )

293031 2929 2828 252727 25 1414151616 1412121111 10 8 888 9 8 8 7 7

0 TMB AYCAL TISCO SCB KK KLeasing 2016 2017 2018 2019 2020

Note: * Excluding captive and non-bank leasing; Lasted Data as of Y2020 ** New car includes HP New car, Fleet finance, Finance lease (FL) and Floorplan Used car includes Car to Cash (K-Car / Car registration loan) and other used cars

90 KF&E Highlights in 1Q21 March 2021

Industry Outlook:  Growth in Equipment Leasing (EQL) business forecasted KF&E Outstanding Loans using numerous factors including total import volume of machinery and equipment, direction of government policy, (Bt.bn) 25.11 25.53 domestic and international business growth opportunities, 25.0 22.88 20.38 and Capital Investment Index, including the labor cost factor 20.0 17.63 that causes switching to use machines instead of human 14.80 15.0 labor.

10.0 KF&E Highlights:

5.0  KF&E outstanding loans were Bt25.53bn, increasing

0.0 11.10% YoY 2016 2017 2018 2019 2020 1Q21  KF&E currently ranked #1; maintaining lead position in equipment leasing industry

Note: In 2010, KASIKORN FACTORING (KFactoring) was renamed KASIKORN FACTORY AND EQUIPMENT (KF&E) to better reflect their business, focusing on offering leasing services for machinery and equipment; the factoring business operation of KFactoring was transferred to KBank

Life Insurance Industry in Thailand

Premium per % GDP by Country

(%) Source: Swiss Reinsurance 20.0 17.5 16.5 Y2017 Y2018 Y2019  In 2019, low penetration rate of 3.3% in Thailand with 15.0 17.9 a high opportunity for growth 10.0 6.1 5.8 6.2 6.0 5.0 3.3 3.4 3.6  Muang Thai Life Assurance (MTL) ranked #4 in life 6.6 6.6 2.1 2.7 2.8 2.3 2.3 3.6 3.3 1.51.4 1.3 1.6 2.3 1.5 2.8 3.3 2.7 1.9 1.2 1.2 1.3 1.4 - insurance industry in Thailand, in 1Q21 with 11.8% market share of total premium India China Taiwan Vietnam Thailand Malaysia Australia Indonesia Singapore Philippines South Korea Size of Market by Premium(%) Market Share by Total Premium in Life Insurance (%) New Business Total Premium Source: The Thai Life Assurance Association Premium (Bt bn) (%) (Bt bn) 2019 2020 1Q21 700.0 200.0 30.0 600.2 180.0 24.3 600.0 25.0 24.0 627.4 160.0 500.0 601.7 537.5 568.3 610.9 140.0 20.0 23.1 503.9 16.7 15.2 400.0 442.5 120.0 15.0 13.4 12.8 12.6 11.8 300.0 391.4 100.0 15.1 9.1 328.6 10.0 12.7 13.7 8.8 153.2 80.0 5.86.5 6.6 200.0 5.2 4.1 6.0 60.0 9.6 5.2 4.3 5.0 2.4 1.4 100.0 40.0 5.8 5.3 4.0 2.4 2.3 1.4 1.7 6.9 - 20.0 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3M20211Q21 AIA FWD TLI MTL KTAL BLA AZAY PLT OLIC GT Others TP NBP

* New Business Premium in 1Q21 = Bt43.7bn

Source: The Thai Life Assurance Association Note: SCB Life premium is combined with FWD Total Premium = New Business Premium + Renewal Premium; New Business Premium = First Year Premium + Single Premium 92 Bancassurance Highlights in 1Q21

Bancassurance Market Share by Total Premium (%)

(%) 40 2019 2020 1Q21 32.3 30 28.8 20 16.3 19.9 10.5  MTL ranked #2 in Bancassurance market 26.1 22.6 10 8.8 8.8 8.6 6.8 11.711.3 3.84.2 8.1 8.3 8.49.0 8.19.2 4.23.9 3.2 1.9 1.8 1.9 1.5 1.5 1.6 3.5 2.21.2  #2 in Bancassurance total premium 0 FWD MTL KTAL AIA BLA PLT TLI AZAY SELIC GT Others with 16.3% market share  #3 in Bancassurance new business Bancassurance Market Share by premium with 15.2% market share New Business Premium (%)

(%) 40 2019 2020 1Q21 29.0 30 30.3 18.7 20 15.2 10.4 25.6 16.6 8.2 10 18.6 5.1 9.5 3.0 2.8 2.5 2.4 2.7 9.18.2 9.4 7.38.1 4.54.4 8.89.2 4.15.0 2.1 2.6 2.3 2.4 8.3 3.7 0 FWD AIA MTL PLT KTAL SELIC TLI BLA GT AZAY Others

Source: Muang Thai Life Assurance (MTL), The Thai Life Assurance Association (TLAA) monthly report (new format) Note: SCB Life premium is combined with FWD Bancassurance premium include all bank partners‘ premiums of MTL

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  Established on 6 April 1951  First life insurance company to have received the Royal benevolence in granting the appointment as the life insurance company of His Current KBank Economic Interests Majesty King Bhumibol Adulyadej Muang Thai Group Holding Co. Ltd (MTGH) 51.00%  Joined hands with Ageas in 2004 (formerly known as Fortis Insurance International NV) and joined hands with KBank in 2009 Muang Thai Life Assurance PCL (MTL) 38.25%  Credit Rating:  S&P Global: BBB+ (Stable Outlook) Muang Thai Insurance PCL (MTI) 10.20%  Fitch Ratings: A- (Negative Outlook) / AAA(tha) (Negative Outlook)  Life Insurance Company with Outstanding Management Muang Thai Broker Co, Ltd (MTB) 50.99% (1st Place Award) 2006 - 2019 (14 consecutive years) MT Insure Broker Co, Ltd (MTIB) 38.20% from Office of Insurance Commission (OIC)  Life Insurance Company of the Year 2014, 2017 and 2018 Fuchsia Venture Capital Co, Ltd (FVC) 38.25% from Asia Insurance Industry Awards  Ageas holds 7.83% in MTGH and holds 24.99990% in MTL AIGEN Co, Ltd (AIGEN) 51.00% Remark: on 9 Apr 21, Fitch Ratings revised to A- (Stable Outlook) / AAA(tha) (Stable Outlook)

94 Muang Thai Life Assurance (MTL) Information Summary  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 2021

2019 2020 1Q21 To become the trusted brand that is ready to take care of and stand by customers Net premiums earned 80.5 72.2 16.8 during their every life stage under “MTL Trusted Lifetime Partner”. This can be Net investment income 20.4 21.4 5.3 achieved through presentations of products and services via multi-channel Total revenues 100.9 93.6 22.1 distribution, with innovations and technologies that can address customer needs in every target group in a more personalized manner on digital and non-digital Long-term technical reserve increase from the previous period 35.1 26.0 6.5 platforms responding to all needs of different lifestyles. The Company also Net benefit payments and insurance claims 41.4 43.0 9.8 progresses to develop its workforce for handling and adapting itself to the digital Commissions and brokerages 9.1 9.1 2.1 world completely and continuously emphasizes market expansion in countries with Other underwriting expenses 0.8 0.6 0.1 potential for economic growth. Operating expenses & Other 5.0 5.2 1.1 Key Financial Targets Total Expenses 91.4 83.9 19.6 Bt bn 2016 2017 2018 2019 2020 1Q21 Profit before income tax expense 9.5 9.7 2.5 Total Premium 97.0 102.7 94.5 83.8 75.3 Income tax expense 1.8 1.8 0.5 (after refund) Industry Net profit (loss) growth 7.7 7.9 2.0 % Growth 10% 6% -8% -11% -10% Statements of Financial Position (Bt bn) 2019 2020 1Q21 2019 2020 1Q21 ROE (%) 12.4% 11.3% 13.1% Total Assets 531.1 556.4 570.1 Total Liabilities 464.5 483.4 491.7 ROA (%) 1.5% 1.4% 1.7% Total Equities 66.6 73.0 78.4 Risk-Based Capital (RBC) 385.7% 323.3% 318.6%

Source: Muang Thai Life Assurance, data based on book value except for RBC Note: OIC = Office of Insurance Commission

MTL Investment Portfolio and Insurance Premium MTL Investment Portfolio: MTL Total Premium Fixed Income accounted for around 84% (bn) 120 102.7 100 94.5 83.8 Total MTL Industry 80 75.3 Premium Growth 60 (%YOY) 40 31.1 Y2017 6% 6% 22.8 26.0 21.6 18.1 Y2018 -8% 4% 20 11.7 Y2019 -11% -3% 71.6 71.7 57.9 53.8 6.4 0 Y2020 -10% -2% 1Q21 5% 2% 2017 2018 2019 2020 1Q21

New Business Premium Renewal Year Premium Total Premium

Assets Under Management (AUM)* (1Q21): Bt 542,073 bn Source: The Thai Life Assurance Association

MTL Total Premium by Products: MTL Total Premium by Channels: Ordinary product accounted for around 81% in 1Q21 Bancassurance accounted for about 61% in 1Q21

100% 100%

80% 80% 60% 60% 40% 40% 20% 20% 0% 2017 2018 2019 2020 1Q21 0% Group Personal Accident Industrial Ordinary 2017 2018 2019 2020 1Q21 Other Direct Marketing Bancassurance Agents

*Remark: Invested Assets + Investment Property Source: The Thai Life Assurance Association (TLAA) / 2019 – 1Q21 data from TLAA monthly report (new format)

96 MTL International Business Expansion

MTL Current International Business Project (On-going)

Cambodia Lao PDR Vietnam Myanmar Company Name Sovannaphum Dara Insurance ST-Muang Thai MB Ageas - Life Assurance Plc. Insurance Co., Ltd. Life Insurance Plc. Co., Ltd.

Entry Strategy Joint Venture Joint Venture with Joint Venture with Joint Venture - with Canadia Individual ST Group Co., Ltd and with Military Investment Shareholders Muang Thai Insurance Bank and Holding Plc. Company Limited Ageas (MTI)

Ownership by MTL 49% 25% 22.5% 10% -

Operation Year 2015 2018 2016 2017 2014

Business Operation Life Insurance General Insurance Composite Insurance Life Insurance Representative (Life & General) Office

MTL’s Life Insurance Product Profile Four Major Types of Life Insurance Product

 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

98 Sample of K-Bancassurance and MTL Products K-Bancassurance Products1 Muang Thai Life Assurance Products2 Endowment Life Insurance

Endowment 615 Participating (Global) MUANG THAI SPEED RETURN 5/3 Pay premium for only 6 years, but the coverage continues for 15 years Pay premium for only 3 years, but the coverage continues for 5 years

Remark (1) Life coverage is in % of the initial sum insured or cash surrender value at that time or 101% of paid premium (whichever is higher). (2) Is in % of the initial sum insured (3) In case of being alive until contract maturity, the benefit is 310% of the initial sum insured or 101% of paid premium (whichever is higher).

Term Life Insurance Term Life Insurance

MRTA-Home (Mortgage Reducing Term Assurance) Khumkhrong Baep Khongthi Life-Bukkhon Single Premium payment period, but the coverage can be chosen between 1 - 15 years

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

Sample of K-Bancassurance and MTL Products K-Bancassurance Products1 Muang Thai Life Assurance Products2 Whole Life Insurance Khumkhrong Talot Chip 99/5 Muang Thai Smart Protection 99/20 Life insurance with a premium payment of only 5 years, but the coverage continues to age 99 years Whole life coverage: pay premium for 20 years and get coverage to the age of 99

Remark (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. (3) Life coverage is 100% of the initial sum insured or cash surrender value at that time or paid premium (whichever is higher).

Rider D Health Rider OPD Rider

101

Shareholder Structure April 21, 2021 (Record Date) Shareholder Structure Top 10 Shareholders* %

1. THAI NVDR CO., LTD** 21.177 2. STATE STREET EUROPE LIMITED 9.490 3. SOUTH EAST ASIA UK (TYPE C) NOMINEES 5.318 LIMITED Thai 4. SOCIAL SECURITY OFFICE 3.980 Foreign Shareholders 5. THE BANK OF NEW YORK MELLON 3.209 56% Shareholders 44% 6. STATE STREET BANK AND TRUST COMPANY 1.961 (NVDR = 21.177%**) 7. EAST FOURTEEN LIMITED-JOHN HANCOCK 1.225 FUNDS 8. BNY MELLON NOMINEES LIMITED 1.177 9. SE ASIA (TYPE B) NOMINEES LLC 1.169 10. GIC PRIVATE LIMITED 1.143 Other Shareholders 50.152 Note: Total 100.000 Foreign Shareholding Limit 49%

Note: * The Top 10 Shareholders are based on individual accounts ** 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

102 Credit Ratings As of January 28, 2021

KBank Thailand Foreign Currency Local Currency/ National Outlook Government Outlook Long-term * Senior Subordinated Long-termRti Subordinated Foreign Local Unsecured Debts Debts Currency Currency Notes

Watch S&P's BBB+ BBB+ N/A N/A N/A BBB+ A- Stable2) Negative1)

Moody's Baa1 Baa1 Baa3 Baa1 N/A Stable3) Baa1 Baa1 Stable4)

Fitch BBB5) BBB5) BB+5) AA+ (tha) AA-(tha)5) Stable BBB+ BBB+ Stable6)

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) August 24, 2020: S&P’s changed the outlook on the long-term ratings of two Thai banks, including KBank, to watch negative from stable, following the change in the outlook for the banking industry outlook to negative from stable on August 21, 2020 2) April 13, 2020: S&P’s downgraded its outlook on Thailand’s sovereign credit rating to ‘Stable’ from ‘Positive’; reflecting its view that the COVID-19-induced economic uncertainty and the state of emergency declaration could delay political transitions expected under the civilian government over the next 12 months 3) April 22, 2020: Moody's changed the outlook on the long-term ratings of ten Thai banks, including KBank, to stable from positive, following the change in the outlook for the sovereign's rating to stable from positive on April 21, 2020 4) April 21, 2020: Moody’s changed the outlook on the Government of Thailand's issuer ratings to stable from positive, as the drivers of the outlook change to positive July 2019 have become significantly less likely to materialize, such as delays in policy implementation, ongoing political tensions, and the deep economic shock caused by the COVID-19 outbreak 5) April 2-8, 2020: Fitch downgraded KBank’s ratings, including SCB, BBL and BAY, due to the challenging operating environment and the large-scale economic disturbance caused by the COVID-19 pandemic 6) March 17, 2020: Fitch downgraded the outlook of Thailand to stable from positive, reflecting the evolving impact of the global COVID-19 outbreak on Thailand's economy through its tourism sector as well as lingering uncertainty in Thailand's political environment following the country's transition to civilian rule

103

Advisory Council to the Organization Chart Board of Directors/ Legal Adviser Independent Directors Auditor Shareholders Committee Corporate Governance Committee Corporate Secretary Board of Directors Human Resources and Remuneration Committee

Risk Oversight Committee

Management Audit Committee Operating Committee Committee

Corporate Audit Division Secretariat Division

Corporate Business Distribution Network Private Banking Capital Markets Investment Banking World Business Division Division Group Business Division Business Division Group

Integrated Channels Transaction and Marketing Enterprise Risk Customer and and Business Wealth Banking Credit Products Management Management Enterprise Service Finance and Control Human Resource Solutions Division Division Division Division Division Fulfillment Division Division Division

Note: Effective on 1 December 2020 104 Board of Directors Structure  18 board members: 9 Independent Directors, 5 Executive Directors, and 4 Non-Executive Directors  Director age limit is 72 years old  Term limit of directorship for Independent directors shall not exceed nine consecutive years  Lead Independent Director and Independent Directors Committee were appointed in order to ensure proper checks and balances Executive Directors (5) Non-Executive Directors (4) Independent Directors (9)

• Ms. Kattiya Indaravijaya • Ms. Sujitpan Lamsam • Ms. Kobkarn Wattanavrangkul (Chief Executive Officer) (Vice Chairperson) (Chairperson of the Board and Lead Independent Director) • Mr. Pipit Aneaknithi • Mr. Sara Lamsam (President) • Sqn.Ldr. Nalinee Paiboon, M.D. • Ms. Chonchanum Soonthornsaratoon (Chairperson of the Corporate Governance • Mr. Patchara Samalapa (Legal Adviser) Committee) (President) • Mr. Suroj Lamsam • Mr. Saravoot Yoovidhya • Mr. Krit Jitjang • Dr. Piyasvasti Amranand (President) (Chairman of the Risk Oversight Committee) • Mr. Kalin Sarasin • Dr. Pipatpong Poshyanonda (Chairman of the Audit Committee) (President) • Mr. Wiboon Khusakul • Ms. Suphajee Suthumpun (Chairperson of the Human Resources and Remuneration Committee) • Mr. Chanin Donavanik • Ms. Jainnisa Kuvinichkul Chakrabandhu Na Ayudhya Note: More information on the Board of Directors biographies can be found on our website https://www.kasikornbank.com/EN/about/Pages/board-of-directors.aspx

105

Sustainable Development PRIDE OF KBank KASIKORNBANK conducts business with the principles of a Bank of Sustainability, supported by good corporate governance principles, as well as appropriate risk and cost INTERNATIONAL management. We strive to balance economic, social, and environmental dimensions to The first and only commercial bank in Thailand and ASEAN selected as a member of the DJSI World Index and DJSI achieve goals and create sustainable long-term returns. The philosophy of sustainable Emerging Markets Index for five consecutive years development is instilled in all our operations as part of our Green DNA, ensuring maximum (2016-present) benefit for all stakeholders and paving the way for sustainable growth. KBank has been classified in the Silver Class of the banking industry from S&P Global Sustainability Awards (2021) (Bronze Class 2018-2020)

A member of the FSTE4Good Emerging Index for the fifth consecutive years (2016-present)

KBank’s Leadership Level rating is at AA for its ESG performance among emerging market banking sector peers

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 two consecutive years (2019-present) The first Thai commercial bank with B Management Level rating, assessed by the Carbon Disclosure Program (CDP) NATIONAL SET Sustainability Awards Included in Thailand – Outstanding granted by Sustainability the Stock Exchange of Investment (THSI) for Thailand for two consecutive five years (2015, 2017- years (2018-2019) present) Sustainability Report Commitment-based Sustainable Finance Initiatives ESG 100 certificate 2020 Award 2020 Participating in commitment-based sustainable finance initiatives which are UN Principles for Responsible Banking, (Certified by Thaipat) TCFD and memorandum of agreement on establishing responsible lending practices. Sustainability The first and only Disclosure Award commercial bank in Thailand granted by Thaipat granted Carbon Neutral Institute Certification (2018-2020)

Note: More information on our Sustainable Development can be found on our website and KBank’s Sustainability Report 2020 106 Example of Economic Aspect: ESG Risk Management  KBank has integrated ESG considerations into the risk management framework, with particular attention given to risks related to lending, investment, products, and services At the management level At the transaction level Lending activities are structured so as to demonstrate environmental The Bank ensures that lending transactions violate and social responsibility as follows neither the law nor social ethics, for example

 Board of Directors  Approving risk management policy, frameworks, risk limits and risk appetites Board of Directors  Risk Oversight Committee  Overseeing and ensuring compliance with consolidated risk management policies and strategies and acceptable risk appetite  Assessing risk management policies and Risk Oversight Corporate Governance strategies to cover all risks including Committee Committee emerging risks  Corporate Governance Committee  Overseeing, monitoring, and undertaking sustainable development  Determining and approving credit policy Credit Risk addressing environmental and social impact Management Sub-committee management in lending and investment activities  Ensuring effective practice of environmental and Environmental and Social Assessment social risk management • Check if requests do not fall under Exclusion list, and conduct  Business units preliminary Environment, Social and Governance screening check  Screening environmental and social risks of projects to be supported  Ensuring and monitoring projects’ • Secure endorsement by Heads of Business and Enterprise Risk Management (Only for Project Finance requests) Monitoring and compliance with regulations/ environmental Business Units Controlling Function and social management plans  Monitoring and Controlling Functions • Conduct detailed specific industry, ESG aspects and credit analysis  Ensuring credit policy and procedure for request approval compliance  Reporting project finances and concerning • Approve/reject requests within delegated lending authority along environmental and social issues to the with designating environmental and social impact conditions Corporate Governance Committee

107

Examples of Economic Aspect: CG and Anti-Corruption Corporate Governance Anti-Corruption

. Reviewing KBank practices under Thai IOD, ASEAN CG  KBank, KAsset, and KSecurities co-signed a declaration of Scorecard, and Dow Jones Sustainability Indices (DJSI) criteria, the “Private Sector Collective Action Coalition Against including the Sustainable Development Policy in accordance with the Corruption (CAC)” project and have been recognized as CAC Bank’s business and Sustainable Development Goals certified companies since 2013  BOD approval and annual reviews of Anti-Corruption Policy, . Implementing a strategic plan for CG activities to enhance including issues such as bribes and inducements, gifts and benefits, compliance by directors, executives, and staff with CG charitable contributions and sponsorships, and political participation principles, Code of Conduct, and Anti-Corruption Policy  Internal Communication on Anti-Corruption Policy to ensure through proper practices within the organization by  Organizing training courses and continually  Organizing training courses for executives and employees communicating via e-Learning system  Communicating with all directors, executives and employees via  Communicating with companies within KBank electronic networks and website KASIKORNBANK FINANCIAL CONGLOMERATE to  Communicating with suppliers on operational guidelines, ensure consistency of operations including . Reviewing the Statement of Business Conduct, the Code of  Guidelines for acknowledgement and compliance related to Conduct, the Statement of CG Principles, CG Policy, and business ethics, human rights, labor, occupational health and related Charters; keeping them up-to-date in accordance safety, and the environment  Communication on business operations in compliance with anti- with corruption policy and practices  Ongoing business operations and Bank Sustainability  Arrangement of supplier meetings on KBank’s procurement  Compliance with laws, international practices, and best procedures practices as prescribed by regulatory agencies and  Communication with customers and suppliers on No Gift Policy for competent agencies all occasions and festive seasons  Provision of various channels to receive information, complaints and whistle-blowing

Note: Thai IOD = Thai Institute of Directors; CG = Corporate Governance 108 Examples of Social and Environmental Aspects Social Aspect Environmental Aspect

1. Financial Inclusion and Financial Literacy 1. Management of Climate-related Risks and Opportunities • Providing financial knowledge and adding new channels of financial access • Assessing climate scenario analysis quantitatively and qualitatively for all customer categories and underprivileged groups • Reporting based on the Task Force on Climate-related Financial • Supporting customers’ financial discipline to alleviate household debts Disclosures (TCFD) recommendations 2. Human Resource Management 2. Financial Support To Environmentally Friendly Businesses • Embracing equitable treatment for employees regardless of differences • Offering financial support to renewable energy power and environmental • Providing various channels for complaints and suggestions conservation projects • Developing employee skills and abilities in alignment with K-Strategy • Issuing sustainability bonds and investing in green bonds • Providing a healthy and safe workplace • Introducing K Climate Transition, Thailand’s first and only fund under the 3. Human Rights Operations climate transition theme, which invests in LO Funds – Climate Transition, • Operating business in line with the United Nations Guiding Principles on (USD), I Class A Business and Human Rights throughout the value chain • Introducing K-CHANGE, Thailand's first Impact Investing fund with the • Implementing human rights risk assessment covering all operations of investment policy through the Master Fund Baillie Gifford Positive Change KBank, K Companies, P Companies, suppliers, and joint ventures Fund - Class B accumulation (GBP). 4. Social Contributions 3. Environmental Management in KBank • Applying the social activity framework based on the London Benchmarking • Appointing CEO to act as Chief Environmental Officer to drive KBank’s Group (LBG)* since 2015 environmental operations • Supporting various projects by extending budgetary support and donating • Committing to transform to a low carbon society items to create positive impact for society and communities • Targeting to reduce GHG emissions by 6.1% by 2023 (base year 2018)

The first Thai and ASEAN 349,108 bank to launch a Volunteer Human Rights The first Thai commercial bank Sustainability Bond Hours Policy and to become a TCFD Supporter. ZERO Due Diligence GHG Emissions Process (Scope 1 & 2) tons CO 97,785.73 2 KBTG– LEED-Platinum injury (21.34% decrease from base year 2012)

Note: * London Benchmarking Group (LBG) standard is used to evaluate the monetary value of corporate spending on social responsibility activities, including donations, hours of volunteer work an proportion of community investment. 109

Public Recognition Highlight: 2020-1Q21 1Q21 2020 - An index component of the Dow Jones Sustainability Indices (DJSI) 2020, including the DJSI World Index and the DJSI Emerging Markets Index - Sustainability Award, Silver Class of the banking industry - Gold Award: Best Advance in - The Bronze Class of the banking Competencies and Skill Development industry category by RobecoSAM - Silver Award: Best Advance in Leadership Development - The Most Popular Stock Award - A member of the 2021 Bloomberg Gender-Equality Index - Best Companies to Work for in Asia - Most Caring Companies - Thailand - Best for ESG - Best Home Loan Product in Thailand 2020 - Best DCM House in Thailand - Best Staff Training and - B score from 2020 Carbon Disclosure Project (CDP) - Best Private Bank in Thailand Development Programme - Innovation Leader of The Year - Thailand Bond House of The Year - Triple A Best Private Bank in Thailand - Thailand Capital Markets Deal of the Year - Triple A Best Private Bank-HNWIS in Thailand - Best Retail Bank in Thailand - Best Service Provider: Transaction Bank - Best Home Loan Product - Sustainability Disclosure Award 2020 - Best Service Provider: Cash Management - Best Service Provider: E-Solutions Partner - Best Private Bank for Portfolio - Best Wealth Management Bank in Thailand Management Technology - Asia - The Asset ESG Corporate Awards 2020 - Best FX Bank for Structured Products - 1 of 20 Asia/Pacific Best Platinum Award: Excellence in Environmental, Social and Governance - Best Corporate Treasury Sales and Structuring Team Bank for 2020 - Best FX Bank for Retail Clients - K PLUS as #1 Top 10 of - Best ESG Green Financing in Southeast Asia: Thailand Finance Apps by MAU in - Best Local Currency Bond Deal of the Year, Thailand Thailand iOS & Google Play - Best Bond Deal for Retail Investors in Southeast Asia - Highly Commended Achievement- Most Effective Investment Service Offering - Winner- Most Innovative Digital Offering - Granted Carbon - Winner: Loan Offering of the Year Neutral Certification - Winner: Best Customer Experience – Debit Card - Winner: Best Private Bank- Digitally Empowering RMs - Top Outright - Winner: Outstanding Customer Experience for Loans Primary Dealer - Winner: Best Digital Customer Experience in Wealth Management - Highly Acclaimed: Best Digital Customer Experience in Private Banking - Highly Acclaimed: Best Digital Customer Experience – Loan Application - Best Fund House - Domestic Equity - 2020 Thailand’s Most Admired Brand - Best Retirement Mutual Fund – Equity for K-Credit Card products and K PLUS - Best Long-Term Equity Fund - Top Underwriting Bank - Product Innovation Awards for lifestyle financial - Deal of the Year products in the categories of credit card and debit card - Best Outright Primary - Best Brand Performance on Social Media in Banking Category Dealer

110 Banking System and Regulations Update

111

Thai Commercial Banks and Specialized Financial Institutions (SFIs)

Market Share (% of Total Loans) Market Share (% of Total Deposits)

Bt Billion 6 SFIs Bt Billion 24,000 24,000 20,301 20,334 20,936 20,988 18,869 19,358 18,463 19,178 20,000 17,765 20,000 17,707 16,680 17,004 16,296 16,843 26.5% 16,000 30.0% 30.4% 30.2% 30.4% 16,000 27.0% 26.8% 26.5% 29.9% 29.9% 26.7% 26.8% 29.9% 26.2% 12,000 12,000

8,000 8,000

14 Commercial Banks 4,000 4,000 70.1% 70.1% 70.1% 70.0% 69.6% 69.8% 69.6% 73.8% 73.3% 73.2% 73.0% 73.2% 73.5% 73.5% 0 0 2015 2016 2017 2018 2019 2020 Feb-21 2015 2016 2017 2018 2019 2020 Feb-21 SFIs Commercial Banks SFIs Commercial Banks

Net Loans Deposits Bt Billion Bt Billion 14,000 12,579 12,627 16,000 14,472 14,530 11,633 11,859 12,000 11,061 Other 13,057 10,470 10,602 14,000 12,099 12,578 Other 21.9% 21.6% 11,359 22.9% BAY 11,196 20.3% 10,000 22.7% 22.8% 12,000 BAY 22.1% 21.5% 20.2% 22.8% KBank 21.5% 12.8% 12.7% 20.6% 20.6% 12.9% 8,000 13.6% 10,000 21.2% 12.6% KBank 11.3% 12.3% 12.5% 12.9% 11.3% 11.9% 16.4% 16.8% KTB 9.7% 10.9% 16.5% 15.0% 15.1% 15.4% 8,000 9.4% 16.2% KTB 6,000 14.6% 15.0% 15.8% 15.5% 15.8% 15.8% 16.9% 17.0% BBL 15.3% 16.4% 15.8% 15.7% 15.8% 6,000 16.2% 16.5% 17.0% 16.8% 18.1% 17.4% 17.1% BBL 4,000 SCB 19.1% 16.1% 15.5% 15.1% 14.9% 16.4% 16.8% 16.4% 4,000 17.7% 17.2% 17.4% SCB 2,000 18.2% 18.6% 18.6% 18.0% 16.8% 17.5% 17.5% 17.4% 16.8% 16.9% 17.0% 2,000 16.8% 17.8% 17.3% 17.1% 16.5% 16.8% 16.2% 0 0 2015 2016 2017 2018 2019 2020 1Q21 2015 2016 2017 2018 2019 2020 1Q21

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)

112 Thailand’s Digital Readiness: Number of Users

 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 )

13.4 billion transactions 145.7% 53.0% 81.7% (+49.1%) Penetration Penetration Penetration Bt443.7trn (+8.7%)

Mobile Internet 1) Broadband Internet 1) Social Media 2) Thailand e-Payment 1) (Mobile internet numbers) (No. of households using internet (No. of Facebook users) (Volume and Value) via broadband)

56.4 110.3% 52.4% 178.2% Million Penetration Penetration Penetration PromptPay 2) Mobile Banking 3) Internet Banking 3) e-Money 3) (Total registration) (No. of accounts) (No. of accounts) (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 2020. Denominator for fixed internet penetration is number of household. 1) As of December 2020, 2) As of January 2021, 3) As of February 2021

113

Financial Sector Master Plan (FSMP) Implementation Stages FSMP I FSMP II (Y2010-2014) FSMP III (Y2016-2020) (Y2004-2009) Looking forward to liberalization competitive, inclusive, connected, and sustainable . Increase efficiency of 1) Promote electronic financial and payment services, as well as enhance Reducing system-wide operating costs the financial institutions efficiency of the financial system system - ‘One Presence’ policy . Streamlining regulations . Promote the adoption of digital banking & electronic payment services - Expand scope of . Tackling remaining NPLs and NPAs in the government, business, and retail sectors business: . Enhance operational efficiency of financial institutions and other service providers ‘Universal Banking’ Promoting competition and access to . Evaluate future financial landscape to promote operational efficiency of - New licenses for retail financial services banks and foreign bank financial institutions and other service providers subsidiaries . Promote competition 2) Support regional trade and investment linkages . Promote financial . Promote financial access inclusion . Facilitating and reducing obstacles for banks’ international expansion, - Strengthen financial Strengthening financial infrastructure including institutions (FIs) by . Promote development of financial . The establishment of Qualified ASEAN Bank (QAB) promoting voluntary products that help support risk . The development of cross-border financial infrastructures mergers management . The creation of suitable financial environments among neighboring . Protect customers . Enhance information systems for countries to foster international trade and investment in the GMS risk management . Push for draft/review of necessary 3) Promote financial access financial laws to support risk . For households: encouraging development of financial products and management and an expedited services appropriate for changing customer demands resolution to NPLs . For SMEs: improving necessary SME database within the financial institution . Promote information technology system and supporting credit extension to SMEs utilization . For Corporate: promoting and facilitating suitable environment for private . Develop human resources in the sector’s raising of capital financial sector 4) Develop relevant infrastructure (Enablers) . Developing key infrastructures in the financial system . Strengthening regulations and supervision in line with international standards Source: BOT and KResearch 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 114 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- Insured Deposit Under the amending the Deposit Protection Agency Act resident Thai Baht accounts 11 August 2012 – 10 August 2015 Up to Bt50mn  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), 11 August 2015 – 10 August 2016 Up to Bt25mn 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 11 August 2016 - 10 August 2018 Up to Bt15mn contribution to the FIDF, and 0.01% being paid to the DPA. The FIDF fee will temporarily reduce to 0.23% for 2 years* 11 August 2018 - 10 August 2019 Up to Bt10mn  Royal Decree on an extension of deposit protection coverage was announced in the Royal Gazette on September 24, 2012 11 August 2019 - 10 August 2021 Up to Bt5mn  The Cabinet approved a one-year extension of deposit protection up to a maximum of Bt5mn. From August 11, 2021, the protection will cover deposits up to Bt1mn. 11 August 2021, onwards Up to Bt1mn Deposit Accounts in Thailand (as of February 2021)

Deposits # of Accounts % Amount (Bt mn) % * According to the BOT announcement in the Royal Less than Bt1mn 106,403,018 98.40 3,211,402 21.82 Gazette, per the authority of the emergency decree More than Bt1mn, but less than Bt10mn 1,590,307 1.47 3,960,215 26.90 dated April 7, 2020, financial institutions are required to More than Bt10mn, but less than Bt25mn 93,999 0.09 1,385,534 9.41 pay 0.23% of the average deposit amount, B/Es, debt instrument (excluding the amount counted as capital), More than Bt25mn, but less than Bt50mn 27,510 0.03 969,137 6.58 borrowings, and securities transactions under More than Bt50mn 22,749 0.02 5,194,617 35.29 repurchase agreements, during January 2020 to Total 108,137,583 100 14,720,905 100 December 2021

Source: Deposit Protection Agency (DPA), the Bank of Thailand , KBank and KResearch

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Regulations Update Capital (Basel III)  D-SIBs* Buffer : Currently, D-SIBs are required to maintain a D-SIBs Buffer at 1%  BCBS has finalized the 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 Financial Sector Master Plan II (FSMP II)  Year 2010 - 2014: BOT’s FSMP II consists of three key policies: 1) Reducing system-wide operating costs; 2) Promoting competition and access to financial services; and 3) Strengthening financial infrastructure, including market liberalization, which will increase access by foreign financial institutions via granting licenses in some business areas as well as permission to increase number of branches and ATMs  Year 2014-2015: BOT established a licensing framework for new types of business operations for specific underserved markets, i.e. Nano-finance

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 linkage; 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  Mar-21: BOT granted licenses for 2 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 2020 onwards: Timeframe was specified by Thailand Federation of Accounting Professions (TFAC); TFRS 9 (Financial Instruments) and TFRS 16 (Leases) became effective in 2020; TFRS 4 (Insurance Contracts) will be changed to TFRS 17 and will be tentatively effective in 2024.  Expected impacts on Thai banks: For TFRS 9, expected credit loss is a significant issue due to economic uncertainty from COVID-19 outbreak. For TFRS 17, it will be more transparent and easier to compare financial performance from insurance business.  Expected impacts on KBank: For TFRS 9, Bank’s expected credit loss is still based on prudence basis following both TFRS 9 and BOT guidelines. Impacts resulted from TFRS 17 is still under investigation. *Note: D-SIBs = Domestic Systemically Important Banks Source: The Bank of Thailand and KResearch 116 Basel III: BOT Minimum Capital Requirement Transitional Arrangement for Capital Requirement

All dates are as of 1 January 2016 2017 2018 2019 2020 2021 2022 2023

Conservation Buffer* 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5%

D-SIBs Buffer** - - - 0.5% 1.0% 1.0% 1.0% 1.0%

CET1: Min. Common Equity Tier 1 Ratio 5.125% 5.75% 6.375% 7.5% 8.0% 8.0% 8.0% 8.0% (after conservation buffer and D-SIBs buffer) (4.5%+0.625%) (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%)

Tier 1: Min. Tier 1 Ratio (after conservation buffer and 6.625% 7.25% 7.875% 9.0% 9.5% 9.5% 9.5% 9.5% D-SIBs buffer) (6.0%+0.625%) (6.0%+1.25%) (6.0%+1.875%) (6.0%+2.5%+0.5%) (6.0%+2.5%+1%) (6.0%+2.5%+1%) (6.0%+2.5%+1%) (6.0%+2.5%+1%)

CAR: Min. Total Capital Ratio (after conservation buffer and 9.125% 9.75% 10.375% 11.5% 12.0% 12.0% 12.0% 12.0% D-SIBs buffer) (8.5%+0.625%) (8.5%+1.25%) (8.5%+1.875%) (8.5%+2.5%+0.5%) (8.5%+2.5%+1%) (8.5%+2.5%+1%) (8.5%+2.5%+1%) (8.5%+2.5%+1%)

Countercyclical Buffer (Subject to the BOT consideration)*** - - - - - 0.0-2.5% 0.0-2.5% 0.0-2.5%

Leverage Ratio Effective in Parallel run period 2023 (Tier 1 / Exposure)  3% (Tentative) Liquidity Coverage Ratio (LCR)**** Effective (Phase-in) (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% Effective in Jul-18 Net Stable Funding Ratio (NSFR) (Available Stable Funding / Required Stable Funding)  100% NSFR  100% NSFR  100% NSFR  100% NSFR  100% NSFR  100% NSFR  100%

Note: * 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 161%, 169% and 189% as of December 2020, June 2020 and December 2019, 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

117

Capital Definition Change (Consolidated) Basel II Basel III Tier 1 Common Equity Tier 1 • Issued and paid-up share capital • Issued and paid-up share capital* • Premium on ordinary shares • Premium on ordinary shares • Legal reserve and Retained earnings • Legal reserve and Retained earnings • Other comprehensive income (OCI) e.g. surplus on bond and equity FVTOCI (100%), 1 surplus on land & premises (100%)

Additional Tier 1 • Hybrid Tier 1 (<15% of total Tier 1) • Hybrid Tier 1 with loss absorbency feature • Minority interest, Preferred stock • Minority interest, Preferred stock Tier 1 capital Tier Deduction of Tier 1 Deduction of Common Equity Tier 1 • Goodwill, Treasury stock, Deferred tax asset • Goodwill, Deferred tax asset 2 • Intangible assets • Investment in insurance • Investment in insurance (Threshold Deduction) (50% Tier 1 and 50% Tier 2) - Amount ≤ 10% of CET1, %RW = 250% (KBank’s Case) - Amount > 10% of CET1, deduct CET1

• Long-term subordinated debt 3 • Long-term sub-debt with loss absorbency feature • Hybrid Tier 1 (exceeds from Tier 1 limit) • General Provision • General Provision • Surplus on AFS equity (45%) 1 * Net Treasury Stock • Surplus on land & premises (70% and 50%) Tier 2 capital Tier 118 TFRS and IFRS Implementation* 2013 2014 2015 2016 2020 2024**

TAS 21: Effects of TFRIC 13: TFRS 13: Fair TFRS 4: Insurance TFRS 16 (Leases) TFRS 17: Insurance Changes in Foreign Customer Loyalty value Contracts There is a single, on-balance Contracts  Insurance revenue will Exchange Rates Programmes Measurement sheet accounting model that is  Measure be based on margin,  Translate ‘Functional  Deferred portion  Clear required insurance liability similar to current finance lease not gross premium Currency’ to of income for factors and accounting. ‘Presentation Currency’ based on cash received reward credit disclosure flow estimation TFRS 9 (IAS 39), TFRS 7 & TAS granted about fair  Expected day one loss TFRS 8: Operating  Additional 32: Financial Instruments Segments valuation is immediately realized disclosure  Thai banks have implemented a while expected gain is  Disclose operating regarding risk new provisioning rule under IAS deferred over coverage results for each key exposure 39, since December 2006 segment period  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 Note: TAS = Thai Accounting Standard; TFRS = Thai Financial Reporting Standard; TFRIC = Thai Financial in Thailand will be classified as Reporting Interpretations Committee equity instrument. (Refer to OCI : Other Comprehensive Income announcement from TFRC *Only financial and disclosure impact to Thai Banks dated 25 June 2020) **Tentatively effective

119

Government Policy

120 Sources and Uses of Public Funds FY2021 Budget

FY2021 budget act was approved in September 2020 and was published in the Royal Gazette on October 7, 2020. General Administration (Bt1.40trn or 42%) . Defense Budget Planning Budget Execution . Homeland security FY2021 Budget Economic Affairs Tax Revenue + (Bt3.29trn) (Bt521bn or 16%) Non-Tax Revenue = . Development of the country’s (Bt2.68trn) Budget competiveness General Budget Disbursement . Subsidize SOEs (Bt2.54trn or 77%) (100% target (e.g. Infrastructure project, free + bus and train service policy) disbursement rate + Investment Budget . Infrastructure/Agricultural Development Borrowing under (Bt0.65trn or 20%) + carry-over) FY2021 Budget Act + Social and Community (Bt609bn) Principal Repayments Services (Bt1.37rn or 42%) (Bt0.10trn or 3%) . Education . Universal Healthcare

Extra-Budget Borrowing Quasi-Fiscal Instrument To relieve the impact of the COVID-19 outbreak, the Quasi-fiscal Extra-Budget government approved SFIs taking deposits, activities Borrowing under emergency decree that allows borrowing, as well as (e.g Soft Loan Special Act/Decree the Finance Ministry to borrow government subsidy Program) up to Bt1.0trn

Notes: Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year. IFF = Infrastructure Fund, PPP = Public-Private Partnership, SFIs = Specialized Financial Institutions

121

Government Fiscal Budget  Thai parliament approved FY2021 budget worth Bt3 29trn, 1200 . with a deficit of Bt609bn 1000  Implementation of FY2021 budget effective October 2020 800 600 400  To relieve the impact of the COVID-19 outbreak, the 600 government approved an emergency decree allowing the 163 100

Billion Baht 400 Finance Ministry to borrow up to Bt1trn (Bt600bn for 609 FY2020 and Bt400bn for FY2021), of which Bt600bn will 200 390 450 450 469 be used for relief measures and public health and 0 Bt400bn will be spent on economic recovery measures FY2017 FY2018 FY2019 FY2020 FY2021  In addition to growth in commercial bank loans, Budget Deficit Extra-Budget Borrowing government funding activities may affect system liquidity

Economic Key Points Implementation Process Possible Impacts/ Policies Expected Budget

 2020 Budget Act  FY2020 budget at Bt3.2trn with a FY2020  Government spending will help deficit of Bt469bn  Effective date: February 24, 2020 maintain economic momentum  Fiscal sustainability to remain  2021 Budget Act  FY2021 budget at Bt3.29trn with FY2021 manageable in near-term; however, a deficit of Bt609bn  Effective date: October 7, 2020 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 - NLA = National Legislative Assembly; PPP = Public-Private Partnership Sources: The Ministry of Finance and KResearch (as of October 2020) 122 Public Debt to GDP and Fiscal Budget Public Debt Budget Disbursement Rate

100 9,000 60 90 Public Debt % to GDP 80 FY 2021 58 8,500 70 FY 2020 54.91 56 47.21 60 FY 2019 39.35 54 54 8,000 50 34.32 52 40 28.56 7,500 50 30 21.04 20 10.81

48 Budget Cumulative % Disbursement Rate (%) Rate Disbursement

7,000 % to GDP 10 46 0 44 Billion Baht Billion

6,500 Jul Oct Jan Apr Feb Mar Jun Sep Dec Nov Aug 42 May 6,000 40 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 FY21 Budget FY21 target 7M FY2021 Unused FY21 actual Budget

Total Budget Bt3.29trn Bt1.77trn Bt1.51trn Bt3.29trn (100%) (54%) (46%)  Public debt to GDP ratio rose significantly to 54.91%, - General Budget Bt2.64trn Bt1.58trn Bt1.06n as of April 2021. However, it is still under the 60% Bt2.64trn (100%) (60%) (40%) - Investment Budget Bt0.65trn Bt0.20trn Bt0.45trn limit set under the fiscal sustainability framework Bt0.65trn (100%) (30%) (70%)  Thai government committed to keep the ratio of public  Government budget disbursement rate for 7MFY2021 is 54%, debt to GDP not exceed 60%. The public debt to GDP decreased by 4% from the 58% in 7MFY2020. The disbursement is expected to rise to 57.9% in FY2021 started to catch up after the budget enactment

Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO)

123

Relief Measures for COVID-19 Impacts MOF BOT Measures Package Size Measures Package Size Provide liquidity for bond Phase 1 Bt400 billion Bt1.0 triillion - Soft loans worth Bt150 billion mutual funds - Interest cuts and delayed debt payments (SFIs) - Reducing electricity and water bills Soft loans and asset Bt500 billion Bt120 billion Phase 2 warehousing programme - Cash handouts - Emergency loans - Tax benefits Corporate Bond Liquidity Bt400 billion Phase 3 Bt1.0 trillion Stabilization Fund (BSF) - Implementing health-related plans and giving financial aid to affected people - Economic and social rehabilitation Bt1.5 trillion or 9.8% of 2020 GDP Bt1.9 trillion or 12.2% of 2020 GDP

Note: SFIs = Specialized Financial Institutions

Source: MOF, BOT and KResearch, as of January 2021

124 Relief Measures for COVID-19 Impacts Measures from Government, BOT, and SEC for Businesses and Individuals

Market Stability and Liquidity Soft Loans Others (Government, BOT, and SEC) (Government and BOT) (Government) For Businesses For Businesses (Bt680bn) For Individuals . Financial Markets: BOT, MOF, & SEC . Soft Loans for SMEs: Government and BOT . Household: o Bt1trn Fixed Income Fund: BOT set up a special o Gov’t: Bt150bn worth of soft loans for SMEs, via o Reduce water and electricity bills for March - May facility to provide liquidity for mutual funds. GSB, at 2% for 2 years 2020, February - March 2021, and May - June 2021, Commercial banks purchasing investment units can o BOT: Bt150bn worth of soft loans for SMEs with and refund meter fees use the eligible underlying unit trust as collateral for credit lines not over Bt500mn (old customers), at 2% . Work Force: liquidity support from the facility for 2 years and 6-months interest free* o 3-month payment of 62% of wages for 2020 and 50% o Bond Markets: BOT will purchase bonds to provide : Bt250bn worth of soft loans for SME with credit of wages for 2021 to people under SSF, if their liquidity and lessen volatility in the bond market lines not over Bt500mm (old customers) or Bt20mn employer closed their business or if the government . Corporate Bond Stabilization Fund (BSF): BOT (new customers) for 5 years with interest not over ordered business operations suspended o Bt400bn in bridge financing to high-quality firms with 5% (0% for the first 6 months and 2% for 2 years) o Reduce SSF contribution to 3% for January 2021 bonds maturing during 2020-2021 at higher-than- : Bt100bn asset warehousing programme and 0.5% for February - March 2021 market ‘penalty’ rates. (Issuers must raise majority of . Soft Loans for Entrepreneurs Registered with the o 3-month Bt5,000 monthly payments to workers not funding through other means such as bank loans or Social Security Office: Government covered by the SSF in 2020 capital increase) o Bt30bn worth of soft loans at 3% for 3 years o Give Bt9,000 (Bt7,000 and Bt2,000) for February - . Reduce FIDF Fee: BOT June 2021 to workers not covered by SSF o FIDF fee cut from 0.46% of deposit base to 0.23% o Give Bt6,000 (B4,000 and Bt2,000) for March - June for 2 years, supporting lower reference lending rates For Individuals (Bt80bn) 2021 to workers covered by SSF (Section 33, We . Tax Relief: Government . Soft Loans for Individuals: Government Love Each Other program) o Deduct 3 times for salary costs for SMEs that retain o Bt40bn worth of soft loans at Bt10,000 per person at . Economy and Health: their employees 0.1% (no collateral) via GSB & BAAC (Year 2020) o Bt45bn for health-related plans o Speed up VAT refunds to exporters of domestic o Bt20bn worth of soft loans at Bt10,000 per person at o Bt555bn for relief measures, including workforce goods to 15 days (online) or 45 days (filing manually) 0.35% (no collateral) via GSB & BAAC (Year 2021) o Bt400bn for economic recovery plans o Bt20bn worth of soft loans at Bt50,000 per person at o Tax exemption on risk payments for medical workers 0.35% (with collateral) via BAAC (Year 2020) o Bt80-100bn from ministries to use as stimulus funds

Notes: BOT = Bank of Thailand; SSF=Social Security Fund; GSB = Government Saving Bank; BAAC = Bank for Agriculture and Agricultural Cooperatives; SFIs = Specialized Financial Institutions The BOT provides soft loans at 0.01% to banks to lend to SMEs; amount to not be over 20% of each SME’s outstanding loans; government pays for first 6-months interest; in case of NPLs, the government will support 60-70% of additional reserves for loans - On October 16, 2020, the BOT extended the registration period for another six months and also allowed banks to provide soft loans to the listed companies in the Market for Alternative Investment (MAI) Source: MOF, BOT and KResearch 125

Overview of Relief Measures for COVID-19 Impacts . BOT opted to switch from blanket measures to proactive and more targeted assistance 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 BOT Blanket Measures Targeted Measures

Feb-20 Apr-20 Sep-20 Oct-20 Jan-21 Apr-21 Issued proactive Launched debt Launched DR Issued debt Extended current • Issued two new measures to assist holiday for BIZ to help restructuring measures to help measures*** to Business borrowers and relax SMEs* for expedite debt guidelines for borrowers support business pre-emptive debt 6-month period restructuring for SMEs after debt affected by new recovery and restructuring rules multi-creditor holiday has round of COVID- transformation businesses ended 19** post-COVID-19 Mar-20 Issued minimum Jun-20 Sep-20 Feb-21 • Changed the guidelines covering Implemented Implemented Rolled out credit methods for card and various types of loan second debt calculation of personal loan products (inc. the first phase of relief consolidation default interest Individual Debt Mediation and application of phase of relief measures to Fair for both NPL debt repayment measures for retail) assist retail and non-NPL borrowers status proceeds Effective Period of BOT relief measures Loan The BOT temporarily allows banks to relax loan classification for two years for loans in suspension period of relief measures Classification After debt holiday ended, BOT allowing freeze of loan stages in 2 cases: Guidelines Oct 20 – Dec 20 1)SMEs who May – Oct 20 are in debt Debt holiday 6-month period, restructuring Ended on Oct 22,2020 process Oct 20 – Jun 21 2)SMEs who cannot forecast their cash flow clearly**

Note: * According to the Emergency Decree on Financial Assistance to Enterprises affected by Coronavirus 2019 (B.E. 2563), dated April 18, 2020. ** According to BOT’s announcement on January 12, 2021, BOT allows banks to help SME and retail borrowers by extending current measures from December 30, 2020 to June 30, 2021, such as second phase of COVID-19 relief measures for retail and assistance guidelines after debt holiday for SMEs. BOT also urges banks to provide financial assistance to all customers by taking into account the risk of customer. *** According to the Emergency Decree on Financial Rehabilitation and Recovery to support Businesses affected by COVID-19 (B.E. 2564), dated April 19, 2021. (i.e. soft loans and asset warehousing) Source: Bank of Thailand (BOT) 126 Relief Measures for COVID-19 Impacts (Continued) Measures from BOT Credit Adjustment For Businesses Phase 2: For Individuals: Second phase is to ease burdens of people affected; customer . Loan Payments for SMEs: can opt-in to alternative measure suited to their debt service ability o 6-month debt holiday on principal and interest payments for SMEs having credit lines . Reduce the interest rate ceiling for credit cards and personal loans by 2% to 4% not over Bt100mn (ended in October 2020) p.a., effective from August 1, 2020 onwards. For Individuals: First phase is minimum guideline for general public. Measure ended in . Increase credit limit from 1.5x to 2x of monthly income for good debtors with a June 2020 monthly income of less than Bt30,000, from August 2020 to December 2021 . Credit Card and Revolving Loans: . Provide alternative measures to help debtors hit by COVID-19 who do not become o Reduce minimum installment payment to 5% in 2020-21 and 8% in 2022, returning to NPLs, such as suspension on principal and/or interest payment, extension of term loan, 10% in 2023; refinancing into long-term loans with lower interest rates payment reduction, or postponement of debt repayment . Personal Loans with Installment Payments and Auto Title Loans: . Restructure debt: FIs must focus on debtor’s debt service ability in order to relieve their o (Banks and SFIs), 3-month grace period on principal and interest payments burden o (Other lenders), 3-month grace period on principal and interest payments, or pay up Debt Consolidation Program for Individuals to 70% of installments for 6 months . Consolidate unsecured loans, hire purchase and housing loan from same creditor to . Hire Purchase: utilize the collateral. For the combined unsecured loan, interest rate is capped not higher o 3-month grace period on principal and interest payments, or 6-month grace period on than the Minimum Retail Rate (MRR), while loan repayment period can be extended principal payments for motorcycles (<=Bt35,000), automobiles (<=250,000), and leasing according to the debt service ability of debtor (<=Bt3mn) “DR BIZ” Project for Businesses who have multiple financial institution creditors . Housing Loans and Micro and Nano Finance: with a total loan of Bt50–500mn o 3-month grace period on principal payments and case-by-case interest rate cuts for . Receive relief measures with all financial institutions in an integrated manner housing (<=Bt3mn) and micro and nano finance (<=Bt20mn) . Have main creditors to take care debtors and coordinate with other creditors . Ease Commercial Bank Loan Rules for Easier Access . Around 8,400 debtors with a total loan of Bt1.2trn have qualifications to join the project Loan Classification

 Standstill: For debt holiday, allow to maintain loan stages for SMEs who are in process of debt restructuring until December 31, 2020; and SMEs who cannot forecast their cash flow clearly until June 30, 2021  Non-NPL (Pre-Emptive): 1) Can immediately classify Non-NPL debtors as stage 1 (stage 1 or stage 2 >> stage 1) 2) Not to be deemed as TDR and not to be reported to National Credit Bureau  NPL: Classify as stage 1, under a 3 consecutive-month payment period (from the previous 12 months)  Additional Working Capital: Can be classified as stage 1, provided that the debtors have sufficient cash flow for repayment

Regulation Relaxation Report to the BOT Other measures

 No additional provision for unused credit line  Financial institutions are required to submit  Relaxing credit line for emergency cases  Easing liquidity-related regulations, including NSFR and LCR reports to the BOT detailing target loans and  Reducing the FIDF fee from 0.46% of deposit base to 0.23% outstanding debts of the debtors who are subject per annum for a period of two years to these measures

Source: BOT 127

20-Year National Strategy (2017-2036) (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 Key Strategies 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 2027 2032 2036

Jun17: NLA passed the law Aug17: Cabinet appointed committees Jun18: Cabinet endorsed the plan Jul18: NLA approved the plan The National Economic and Social Development Plan (5-year plan) aligned with the 20-year National Strategy

The 12th National Economic and Social The 13th National Economic and Social The 14th National Economic and Social The 15th National Economic and Social Development Plan (2017-2021) Development Plan (2022-2026) Development Plan (2027-2031) Development Plan (2032-2036)

128 Government Policy: Long-term Policies

 20-Year National Strategy: To achieve the vision “Security, Prosperity,  Promote Establishment of International Headquarters (IHQ) and an Sustainability,” to become a high-income country, to improve quality of life, to International Trading Center (ITC) in Thailand: Help Thailand become a key generate high income, to escape the middle-income trap, and to ensure well-being trading nation in the region for all Thais (Page 128)  ASEAN Economic Community (AEC): Since December 2015, ASEAN has  Transport Infrastructure Development Plan: transformed into the “ASEAN Economic Community,” with free movement of goods,  Project will reduce logistical costs, increase transportation speed of goods and services, investment, and skilled labour, and a freer flow of capital; Strategic people, as well as connect Thailand to neighbors along the East-West and measures under the five characteristics in the AEC Blueprint 2025 will be North-South Economic Corridors operationalised through sectoral work plans and their implementation and  Public Transport Infrastructure Investment 2015 to 2022: worth Bt2.59trn monitored through the AEC 2025 Monitoring and Evaluation Framework (Page 132)  Free Trade Area: Already signed FTA with ASEAN+3 (China, Japan, and Korea), India, Australia, New Zealand, Peru, Chile; In progress with Canada, European  Eastern Economic Corridor (EEC): Area for facilitating and attracting investment Union (EU), the Regional Comprehensive Economic Partnership (RCEP), and in 10 innovative target industries to transform Thailand into Thailand 4.0 (Page 136) Comprehensive and Progressive Agreement of Trans-Pacific Partnership (CPATP)  Digital Economy:  Age Society: Mandatory retirement age for government and state enterprise  NBTC awarded mobile licenses in various spectrums and launched 5G officials will be extended from 60 to 63, effective in 2024  Government plans to adapt National Digital ID to speed up the process towards digital economy  Energy Policy: Reform petroleum concessions and energy price structures, including an LPG subsidy  BOI Measures for Supporting Private Investment: Tax and non-tax incentive measures to support private investment, such as Special Economic Zones (SEZs)  Tax Reform: Reform tax collection, generate sufficient revenue for the government, and boost competitiveness for local businesses, especially SMEs (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,  Constitution: National assembly seeks to amend the constitution section-by- Smart Electronics, Affluent Medical and Wellness Tourism, Agriculture and section 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

Sources: Newspaper and KResearch (as of April 2021)

129

Government Policy: Short-term Policies

 Government Budget:  Short-term Stimuli (continue):  Fiscal budget deficit in FY2021: plans for Bt609bn deficit to provide additional  Projects to boost domestic consumption: supports to Thai economy amid COVID-19 outbreak (Page 122) 1) "Half-Half” scheme : a co-payment for food and general products subsidizing  Relief Measures for COVID-19 Impacts: Helping financial market stability and half of the purchase price liquidity, and business, work force, and individuals through soft loan programs and - Phase 1&2: Bt3,500 to 15 million people (October 2020 - March 2021) relief measures (Page 124-127) - Phase 3: Bt3,000 to 31 million people (July - December 2021) 2) Additional Bt500 given each month to 14 million people holding welfare cards  Short-term Stimuli: (October 2020 - March 2021)  Welfare Card: Give Bt200-300 a month to each welfare smart card (14.5 million 3) Section 33 - We Love Each Other program : Bt6,000 (Bt4,000 and B2,000) people) for purchase of necessary goods for those earning less than Bt100,000 given to people who meet the deposit conditions of less than Bt500,000 during annually; Give Bt500 wallets to help with transportation costs March - June 2021  Thailand Plus Package: attract foreign investment, especially to expedite 4) We Win program : Bt9,000 (Bt7,000 and Bt2,000) per person during February investments from companies seeking to relocate as a result of ongoing trade war ‘ - June 2021  Cash handout for workers not covered by SSF: Bt5,000 monthly payments for 3 5) “Ying Chai Ying Dai” program : Give e-vouchers (up to Bt7,000) to people who months to informal workers affected by COVID-19 (April - June 2020) spend money from July - September 2021 to encourage purchase of food,  Supporting tourism: Subsidies for domestic tourists (Moral Support & We Travel products, and services through the government's e-wallet (can be used from Together campaigns) (July 2020 to April 2021); "Special Tourist Visa” for long- August to December 2021) staying visitors (90 day stay in country, which can be extended twice, each for an additional 90 days. The visa costs Bt2,000 per 90-day extension)  Property stimulus package: Property transfer fees reduced from 2 percent to 0.01 percent and mortgage fees reduced from 1.0 percent to 0.01 percent for buying condominium units priced at not over Bt3mn (Jan - Dec 2021)  Measures to help farmers: Many price insurances for agricultural plants such as rice, rubber, oil palm, cassava, and corn (Bt75bn for 2021 government budget)

Sources: Newspaper and KResearch (as of May 2021)

130 Ongoing Government Measures to Assist Cost of Living Measures Details Household Assistance Train and Bus Fares: Bt500 monthly allowance for welfare card holders to use for bus and train service Necessity Goods: A Bt100* 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 Bt45 discount each quarter in welfare card for purchasing cooking gas Allowances (e-Money) : Up to Bt 200** for e-Money in welfare card, which can be withdrawed from an ATM Water and electricity price: Reduce water and electricity bills and refund meter fees Energy Prices Diesel Fuel: Government intends to restructure diesel fuel prices to reflect global prices NGV and LPG Price: Government lowered the NGV and LPG subsidy, allowing retail Elimination of some Oil Fund levies (effective Diesel Price 35 selling prices to reflect global market prices 33  NGV price rose to Bt15.31/kg since April 2019, align with global price 31 29  LPG prices are as follows: 27 29.99  Household sector: Current household LPG prices are Bt18.87/kg 25 and Bt16.37/kg for low income household. Baht/Litre 23 Price moves in accordance  Transport sector: adjusted to market price at Bt18.87/kg 21 with global oil prices 19  Industrial sector: adjusted in line with relevant production costs, currently at Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Bt18.87/kg Retail Price Price without Subsidy FT Rate: Fuel Adjustment Tariff (FT) Rate for electricity is set to increase by less than the actual cost (from Jan-Apr 2021, FT rate at Bt-0.1532/unit )

Value-added-tax (VAT) Rate On August 25, 2020, the Government announced the following VAT Rates:  Maintain the 7% value-added-tax (VAT) rate until September 30, 2021

Note : * Effective period July– October 2019 ** Household income exceed Bt30,000 per annum will get Bt 100 for e-Money Source: KResearch 131

Public Transport Infrastructure Investment 2015 to 2022

Type of Projects Source of funds Project Detail (Total Budget)

6. Air 7. Others 1. High‐speed Total Transport 6% Rails 6% 34% State PPP 5. Marine Enterprise TFF 1. High-speed Rails (Bt1,006.7 bn) 4. Dual-Track Railways (Bt438.2bn) projects of 22% Transport 12% fund “Thailand 6% 2% strategic development of 4. Dual‐Track 2. Motorway & Roads (Bt512.3 bn) 5. Marine Transport (Bt187.6 bn) Railways transport 15% Govern infrastructure ment 2015 to 2022” Loan 3. Bangkok and Mass-Transit system (Bt476.7 bn) 6. Air Transport (Bt183.5 bn) Govern 35% master plan* ment 3. Bangkok Budget and Mass‐ 2. Motorway 29% Total Budget Number of projects Total disbursement Transit & Roads system 17% Total projects 119 Bt3,017,600Mn

Type of Projects New vs on-going Project Detail (Expected disbursement in 2021) projects

New projects 1. Bangkok and Mass-Transit system(Bt48.4 bn) 4. High-speed Rails (Bt30.3 bn) 7. Others 1. Bangkok and 6. Air Transport Mass-Transit 11% system For 2021, public 5. Marine Transport infrastructure 2. Motorway & Roads (Bt40.4 bn) 5. Marine Transport (Bt15.7 bn)

investment is 4. High-speed estimated to be Rails B180bn or 18% 3. Dual-Track Railways (Bt30.9 bn) 6. Air Transport (Bt6.2 bn) higher than On-going projects 2020* 89% Expected in 2021 Number of projects Total disbursement 3. Dual-Track Railways Total projects 35 Bt180.4bn 2. Motorway & Roads On-going projects 31 Bt126.4bn

New projects 4 Bt54.9bn

Source : Office of Transport and Traffic Policy and Planning (Thailand strategic development of transport infrastructure 2015 to 2022 master plan ) and KResearch (April 2021) 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 * The budget of Bt1.91trn referring “Thailand strategic development of transport infrastructure 2015 to 2022 master plan” are excluded High-speed train (Bt637.3bn) and Suvarnabhumi airport (Bt104.4bn), but our estimation include both of these projects 132 Budget Disbursement of Public Transport Infrastructure Investment 2015 to 2022  In 2021-2024, the government is expected to accelerate disbursement budget as a mean to restore economic momentum after COVID-19

Investment Disbursement Schedule (FY2016-2030)*

400 356.7 345.5 350 327.9 312.6 300 256.7 253.4 250 204.9

Billion Baht 200 184.6 156.8 151.1 147.5 150

100 65.1 50 36.8 24.5 19.1 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Notes: - Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year - High-speed railways are included - 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 (Bt637.3bn) and Suvarnabhumi airport (Bt104.4bn), 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 April 2021 133

On-going highlight projects under construction in 2021* Projects under construction Expected Note completion year Motorways: Bang Pa In-Nakhon Ratchasima 2021 90% in progress (M6) Bang Yai-Kanchanaburi (M81) 2023 30% in progress Projects under construction Expected Note completion year

High Speed Rails: About to start construction Thailand-Chinese (Bangkok- 2026 contract lots 3-2 to 4-7** Nakhon Ratchasima) which is worth Bt40,275mn. New contract lots worth Bt27,527mn are signed (4-3, 4-4 and 4-6) which expected to start construction in late 2021 Projects under construction Expected Note completion year Mass-Transit System and Commuter Rail Lines: Yellow line (Lad Prao-Sam 2021 53% in progress Rong) Orange line (Thailand cultural 2023 66% in progress center-Min Buri) Pink line (Khae Rai-Min Buri) 2021 60% in progress Projects under Expected Note construction Projects under construction Expected Note completion year completion year Dual-Track Railways: Air Transport: Nakhon Pathom-Hua Hin 2021 57% in progress Hua Hin-Prachuap Khiri Khan Suvarnabhumi Airport Phase 2 2021 85% in progress 2021 20% in progress Lop Buri-Pak Nam Pho 2021 40% in progress MabKabao-Jira Junction 2021 70% in progress Source : Ministry of Transport and KResearch (April 2021) Prachuap Khiri Khan-Choom 2021 50% in progress Notes : Projects that visibly have construction progress on-site or have been stated in official documents that it had been constructed Porn *There are currently 30 projects under construction. For the purpose of visualization, only highlight projects are shown in this presentation **Contract lots are 3-2 , 3-3 , 3-4 , 3-5 , 4-7 which have construction disbursement of Bt40,275mn and 1080 construction days

134 Upcoming Infrastructure Projects Upcoming Infrastructure Projects by Status Upcoming Infrastructure Projects by Areas

EHIA/TOR/Bidding Process Status Expected to Note start construction

High-Speed Rails: - Due to land reclamation Bangkok-Rayong (3 Airports) Preparing for End of 2021 or problem and change in stations, construction beginning of construction may be delayed 2022

Marine Transport: Leam Cha Bang phase 3 Land reclamation 2021 Land reclamation Map Ta Phut phase 3 2021

Air Transport: Suvarnabhumi Airport 3rd runway Bidding (passed 2022 - To increase flight capacity from EHIA) 68 to 90 flights per HR

U-Tapao Airport Preparing for 2021 construction

Dual-Track Railways: Land reclamation Den Chai-Chiang Rai, Ban Pai-Nakorn Panom 2022

Mass-Transit System and Commuter Rail Lines: - Expect to delay due to a change Purple line (Tao Poon-Racha Burana) 2022 in TOR Orange line (Bang Khun non-Cultural center) Land reclamation 2022 -Expect to delay due to EIA Dark Red line (Rangsit) 2022 process Projects Preparation for approval by Cabinet/ PPP Process /EIA Process** Status

High-Speed Rails: - May be asked for Thai-Japanese (Bangkok-Chiang Mai) approval by Cabinet Thailand-Chinese (Nakhon Ratchasima-Nong Khai) in 4Q21 Bangkok to Hua Hin - EIA and PPP process

Air Transport: Suvarnabhumi Airport Phase 3 (North building expansion) - Preparation for approval by Cabinet

Motorways: - EIA and PPP Hat Yai to Malaysia Border process Samut Prakan to Bangkok to Samut Sakorn EIA process

Dual-tracks Railways: Pak Po-Den Chai, Jira-Ubonracha Thani, Khon Kean-Nhong Kai, Choom Porn- - Preparation for Source : Ministry of Transport and KResearch (April 2021) Surat Thani, Surat Thani-Song Khla, Had Yai-Padang Besar approval by Cabinet Notes : Some projects are expected to be delay due to COVID-19 situation

135

Eastern Economic Corridor (EEC): Three eastern provinces: Chachoengsao, Chon Buri, and Rayong  Objectives: To facilitate and attract investment in 10 innovative target industries aimed at achieving “Thailand 4.0”, an innovation driven society (the 10 industries are Next-Generation Automotive, Smart Electronics, Medical and Wellness Tourism, Food for the Future, Robotics, Aviation, Agriculture & Biotechnology, Biofuels & Bio Chemicals, Digital, and Medical Hub)  Key Development Plan: An expansion of existing transportation facilities, plus new investment in logistics systems to transform the EEC area (13,266 square kilometer) into a regional center for trade, investment, and tourism  Approved Investment Amount: Bt1.1 trn (during 2019-2020) from industries & private businesses 429 bn Bt and infrastructure development 683 bn Bt; high-priority projects to start in 2019 are U-Tapao Airport, high speed railways from Bangkok to Rayong, the third phase of Laem Chabang Port and Map Ta Phut Port, and the maintenance repair and overhaul (MRO) campus.  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* Approved Investment Amount ( Bt1.1trn during 2019-2020)

Unit: Billion Bt Bt bn

752.2 947.8

Infrastructure Industries and others (Private)

Source: The Board of Investment of Thailand (BOI), and The Eastern Economic Corridor Office of Thailand (EECO) presentation and KResearch projected (as of April 2021)

136 EEC Progress

Expected Contract Beginning Projects Amount Owner Name of the selected JV project Signed Construction completion

Charoen Pokphand Group (CP) led State Railway of High-Speed Rail Linking 3 Airports Bt224bn Oct 2019 Consortium 4Q21 2025 Thailand (CP, Italian Thai, CH. Karnchang, China Railway Construction Corp)

Bangkok Airways led Consortium U-Tapao Airport and Aviation City Bt290bn Royal Thai Navy Jun 2020 4Q21 2025 (Bangkok Airways, BTS, Sino-Thai)

GPC (Gulf Energy Development Pcl + PTT Tank Terminal + China Habour) 1Q21 Port Authority of for F Dock Development Laem Chabang seaport (3rd Phase) Bt114bn Aug 2020 (Land 2025 Thailand C NNC reclamation) (NTL Marine + Nathalin + Zhonggang Construction) for Land reclamation project Industrial Estate 1Q21 PTT Tank Terminal + Gulf Energy Map Ta Phut seaport (3rd Phase) Bt55.4bn Authority of Oct 2019 (Land 2026 Development Pcl Thailand reclamation)

Note As Thai Airways is restructuring and no longer as a state enterprise, Maintenance, repair and overhaul (MRO) centre has been cancelled since March 2021. Bangkok Airways is now become new potential investor of MRO project (but the agreement has not yet finalized.) Source: Newspaper, Eastern Economic Corridor Office of Thailand and KResearch as of April 2021

137

Thailand Economic Figures

138 Currency and Interest Rate Outlook USD/THB: End Period Interest Rate Trend

Fed Funds rate BOT's 1-Day Repurchase rate 4.00 2.75 Bt 35.97 35.84 2.25 37 32.91 2.00 1.50 1.50 1.50 1.75 32.68 32.66 32.55 2.00 1.25 0.50 0.50

30.50 p.a. % 33 30.60 29.98 29.95 0-0.25 0-0.25 0-0.25 0.25-0.50 0.50-0.75 1.25-1.50 2.25-2.50 1.50-1.75 0.00-0.25 0.00-0.25 29 0.00 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21F Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21F USD/THB . Baht hit around Bt31.8 per USD in late-June, after . Fed would keep its ultra-monetary easing with its uncertainty over the Fed’s QE tapering supported the rate at 0.00-0.25%, and the size of an asset USD sentiment in 1H21 purchase throughout the year . However, Baht would appreciate and hit Bt30.50 per . However, Fed would signal a quicker tapering USD at the end of 2021, as global economic recovery, timeline than the markets previously expected more capital flows to Asia, and improving Thai . BOT likely to maintain its policy rate at 0.50% in current account balance after border reopening 2021, amid ongoing fiscal relief measures and debt measures to counter the impact of new COVID-19 outbreak

Note: F is estimated by KBank Capital Markets Research (as of June 21, 2021)

139

Monthly Economic Conditions: April - May 2021

2019 2020 YTD  April indicators began to be Units: YoY %, or indicated otherwise 4Q-20 1Q-21 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 2020 affected by the third wave of the Private Consumption Index (PCI) 2.3 -1.9 1.8 -1.1 -0.4 2.4 3.3 -4.6 -2.5 3.7 8.7 1.2 COVID-19 outbreak ꞏ Non-durables Index 2.3 -1.7 -1.9 -4.2 -3.6 -1.9 -0.1 -8.7 -3.2 -0.8 5.2 -2.2 ꞏ Durables Index -1.7 -12.3 1.1 -2.2 -4.5 0.2 6.9 -12.3 -7.7 13.3 54.9 7.8  Private consumption index ꞏ Service Index 2.9 -21.3 -23.4 -17.3 -22.7 -20.1 -27.8 -29.1 -19.7 0.7 6.6 -12.0 contracted at a higher pace than ꞏ Passenger Car Sales -1.6 -28.3 0.6 -9.7 -11.8 3.9 10.8 -28.0 -15.5 29.9 120.3 4.5 ꞏ Motorcycle Sales -3.3 -10.2 -4.0 0.9 -11.4 -9.6 11.1 -6.1 -5.5 15.6 64.1 12.5 previous month, but improved Private Investment Index (PII) -2.6 -5.2 1.0 7.1 -4.0 0.8 6.3 2.2 8.1 10.7 11.9 8.1 from the previous year due to low ꞏ Construction Material Sales Index -0.7 -3.5 -5.9 3.9 -10.4 -6.0 -1.3 3.8 -0.9 8.5 -3.6 2.1 base effect ꞏ Domestic Machinery Sales at constant prices -5.4 -4.9 7.4 10.0 5.1 5.9 11.1 6.1 8.2 15.0 20.1 12.1 ꞏ Imports of Capital Goods at constant prices -0.9 -11.4 -3.8 16.0 -15.4 -1.0 5.4 1.6 31.4 20.0 21.2 21.2  Exports excluding gold slightly ꞏ Newly Registered Motor Vehicles for Investment -3.0 -10.9 5.8 0.1 -5.0 1.8 27.7 -4.0 -5.2 9.3 16.6 3.3 increased, as the global demand -3.6 -9.3 Manufacturing Production Index -1.6 0.8 -1.3 -0.6 -2.8 -2.0 -1.3 5.9 18.5 4.4 have started to recover ꞏ Capacity Utilization 66.0 60.8 63.8 64.7 63.5 63.8 64.2 64.7 64.2 65.2 64.8 64.7 Agriculture Production Index -0.3 -4.1 -2.1 3.7 0.1 0.0 -7.5 1.4 6.8 3.1 0.8 3.1  Current account recorded a wider 1.9 6.1 11.1 9.7 12.3 9.7 11.3 7.1 ꞏ Agriculture Price Index 9.1 12.8 13.3 10.6 deficit, due mainly to service Tourist arrival growth 4.6 -83.2 -99.9 -99.7 -100.0 -99.9 -99.8 -99.8 -99.7 -99.2 N.A. -99.6 Exports (Custom basis) -2.6 -6.0 -2.0 0.9 -6.7 -3.6 4.7 0.3 -2.6 8.5 13.1 4.8 balance Price 0.3 -0.8 -1.4 -1.9 0.5 -1.7 -3.1 -2.6 -2.4 -0.7 -0.2 -1.1  May headline inflation and core Volume -3.7 -5.9 -1.6 5.0 -5.5 -3.3 4.5 -1.2 -2.2 11.8 14.6 13.1 Imports (Custom basis) -4.8 -12.4 -4.2 9.4 -14.3 -1.0 3.6 -5.2 22.0 14.1 29.8 13.9 inflation edged higher, due mainly Price 0.2 -2.0 -1.8 2.9 -1.8 -2.2 -1.3 -0.9 2.2 7.8 9.7 6.5 to low base effect and higher Volume -5.7 -11.8 -4.3 6.2 -12.3 -1.1 1.2 -6.0 21.1 6.8 14.7 13.6 energy price Trade Balance ($ millions) (Custom basis) 10,009 24,477 3,063 516 2,047 53 964 -202 7 711 182 698 Current Account ($ millions) 38,206 16,539 -1,168 -2,551 674 -1,294 -829 -673 -1,071 -806 -1298 -962 Headline CPI 0.71 -0.90 -0.40 -0.53 -0.50 -0.41 -0.27 -0.34 -1.17 -0.08 3.41 2.44 0.83 Core CPI 0.52 0.30 0.18 0.12 0.19 0.18 0.19 0.21 0.04 0.09 0.30 0.49 0.23 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE)

140 KR Household Economic Condition Index (KR-ECI) . The KR-ECI figures in March 2021 enjoyed consistent growth from the previous month, from 39.5 and 41.3 in February 2021 to 40.4 and 41.5, respectively. As the COVID-19 situation showed signs of improvement in March. . The 3-Month Expected KR-ECI have also seen improvement - rising from 48.4 in February 2021 to 50.7- owing to the government’s approval of plans to reopen the country to tourists. . Households continue to face high uncertainty after the emergence of a new wave of COVID-19 shoring up confidence an urgent mission for the government.

KR Household Economic Condition Index (KR-ECI) Components of 3-month Expected KR-ECI

3-month Expected KR-ECI KR-ECI 50.0 40.1 48.0 37.9 46.0 50.7 44.0 48.4 41.3 42.0 41.5 40.0 40.4 45.6 38.0 39.5 47.8 36.0 29.1 34.0 32.2 32.0 30.0 35.8 Mar-21 Feb-21 37.4 Jul-20 Jul-19 Jul-18 Jan-21 Jan-20 Jan-19 Jan-18 Mar-21 Mar-20 Mar-19 Mar-18 Sep-20 Nov-20 Sep-19 Nov-19 Sep-18 Nov-18 May-20 May-19 May-18 0 102030405060 Current KR-ECI 3-month Expected KR-ECI 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.

141

Economic Condition Highlights: April - May 2021

Apr21 MPI and CapU edged lower MoM, due to Activities in real estate market, except condominium registrations, the COVID-19 situation, but were up YoY as low base effect were higher in 1Q21

18.5 20 85 400% 15 300% 10 75 5 200% 0 65 100% -5 64.8 % YoY 0% 0.02 -10 55 %YoY of MPI of %YoY -100% -0.50 -15 -20 45 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21-0.16

-25 Rate Utilization %Capacity -30 35 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Construction areas permitted Nationwide Condominium Registration Nationwide New Housing registered in BKK and Vicinity

MPI (lhs) %Capacity Utilization (rhs)

May21 Headline inflation and core inflation up 2.44%YoY Single house and townhouse showed small growths in 1Q21, but and 0.49% YoY, respectively, due to very low base last year prices of land increased at higher rate

1.0 4.00 20.0 3.00 2.44 2.00 10.0 0.5 1.00 7.5 %YoY

%MoM 0.8 0.49 0.00 0.0

-1.00 % YoY 0.0 0.8 -2.00 -10.0 -3.00 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 -0.5 -4.00 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Headline CPI (MoM-lhs) Core CPI (MoM-lhs) Single House (With Land) Townhouse (With Land) Land Headline CPI (YoY-rhs) Core CPI (YoY-rhs)

Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE)

142 Economic Condition Highlights: April - May 2021 Apr21 CCI and BSI declined, due mainly to the more stringent control Apr PCI was lower from the previous month, because of the new wave measure of the new wave of COVID-19 outbreak in April of COVID-19, but higher YoY due to low base effect

90 60 80% 85 54.90% 55 60% 80 46 40% 75 50 %YoY 16.60% 21.20% 8.7% 11.9% 70 20% 5.20% 6.60% 45 65 0% BSI CCI 60 40 -20% -3.60% 55 -40% 46 35 PCI PII Registered Motor Construction Materials Imports of Capital Consumer's Non Consumer's Durable Consumer's Service 50 Vehicles Goods Durable 45 30 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 1Q20 2Q20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Co ns umer Co nf ide nce In de x ( CCI ) Bu sine ss Sen timen t In de x ( BSI)

Apr21 Foreign tourist arrivals stayed low, as international travel Exports in Apr21 continued to show a positive growth, due to restrictions remained improving economic activity in some countries

Export Value % YoY 50.0 20.4% 4.2% 50% 8.9% 9.4% 7.3% (USD Million) 40.0 0% 28,000 28.9 40 24,000 30 30.0 -6.5% 20 -83.2% -50% 20,000 20.0 -99.6% -99.6% 16,000 10 12,000 0 24.8 -100% 13.1 -10 35.6 29.9 10.0 32.5 8,000 -20 39.8 38.2

6.7 4,000 0.01 -30

0.0 0.03 -150% 0 -40 Million Person 2014 2015 2016 2017 2018 2019 2020 4M21 Apr-21 No of Foreign Tourist Arrival % Tourist Arrival YoY (RHS) Jan-16 Sep-16 May-17 Jan-18 Sep-18 May-19 Jan-20 Sep-20

Exports Exports excluding gold Exports % YoY Exports excluding gold % YoY Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), and Office of Industrial Economics (OIE)

143

Exports and Imports: 4M21 Exports by Country Imports by Country Taiwan 3.8% Others Others Middle East Middle East ASEAN CLMV 16.3% 3.4% 17.6% 3.5% 23.9% 10.93% U.S.A. China Hong Kong 5.5% 23.8% 4.0% China EU Australia 13.2% 9.0% 4.3% Japan ASEAN CLMV 5.6% EU Japan U.S.A. 14.0% 24.1% 8.9% 9.8% 14.9%

Top 10 Exports by Product (Customs Basis) Top 10 Imports by Product (Customs Basis)

4M2021 4M21 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight %YoY USD Millions Weight %YoY Total Exports, 85,577 100.0% 4.8% Total Imports, 84,879 100.0% 13.9% Electronic machines 13,188 15.4% 14.8% Crude oil 7,271 8.6% -2.1% Motor cars, motor vehicles, parts and Machinery and parts 6,866 8.1% 4.5% 10,019 11.7% 37.1% accessories Chemicals 6,446 7.6% 22.1% Electrical equipment 9,444 11.0% 21.0% Electrical machinery and parts 6,220 7.3% 12.2% Chemical products 2,831 3.3% 27.2% Electrical, electronic equipment and parts 6,094 7.2% 12.4% Machinery and parts thereof 2,557 3.0% 12.6% thereof Jewellery including silver bars and gold 5,463 6.4% 106.0% Precious stones and jewellery 2,457 2.9% -69.8% Iron, steel and products 4,862 5.7% 27.4% Refine fuels 2,343 2.7% 11.0% Other metal ores, metal waste scrap, and 3,996 4.7% 36.1% Iron and steel and their products 2,086 2.4% 21.2% products Textiles 2,085 2.4% 2.6% Parts and accessories of vehicles 3,830 4.5% 14.3% Rubber 1,914 2.2% 47.4% Electrical household appliances 3,088 3.6% 51.4% Source: Ministry of Commerce

144 Export and Import Data: 2015 - 2020 Exports by Country Imports by Country 20.4% 8.7% 20.6% 21.2% 14.9% 22.0% 22.8% 22.9% 21.7% 22.2% 4.8%3.4% 22.6% 22.7% 9.1% 7.0% 3.4% 7.7% 4.8% 4.0% 3.8% 5.0% 4.8%3.4% 14.8% 6.8% 8.2% 9.9% 8.3% 5.6% 5.4% 5.3% 5.2% 6.2% 7.3% 11.2% 11.4% 11.2% 11.1% 12.7% 10.2% 6.7% 6.1% 14.9% 15.4% 15.8% 9.4% 9.5% 9.3% 9.9% 10.0% 14.0% 14.5% 14.1% 14.0% 11.1% 11.0% 12.5% 12.0% 11.8% 8.2% 20.3% 24.9% 21.6% 20.0% 20.0% 21.3% 10.3% 10.2% 10.1% 9.9% 9.6% 11.5% 8.9% 8.2% 10.4% 10.3% 10.6% 11.6% 11.2% 4.8% 9.3% 9.5% 8.9% 8.8% 5.5% 24.4% 4.9% 4.8% 4.9% 5.7% 15.3% 15.1% 14.6% 15.5% 14.4% 19.0% 13.9% 13.8% 13.4% 13.3% 18.9%

2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 ASEAN 5 CLMV EU China Japan USA Hong kong Middle East Others ASEAN 5 CLMV EU China Japan USA Middle East Others 2020 2020 Total Exports, Custom Basis Import, Custom Basis USD Millions Weight %YoY USD Millions Weight %YoY Total Exports, 231,468 100.0% -6.0% Total Imports, 206,992 100.0% -12.4% Electronic machines 36,514 15.8% 2.6% Machinery and parts 18,118 8.8% -13.4% Electrical equipment 23,561 10.2% -2.7% Crude oil 16,955 8.2% -20.0% Motor cars, motor vehicles, parts and accessories 21,267 9.2% -22.2% Electrical machinery and parts 16,789 8.1% -4.4% Electrical, electronic equipment and parts thereof 16,027 7.7% 3.7% Precious stones and jewellery 18,207 7.9% 16.0% Chemicals 14,457 7.0% -5.5% Polymers of ethylene in primary forms 7,972 3.4% -13.1% Iron, steel and products 10,234 4.9% -20.8% Chemical products 6,736 2.9% -11.2% Parts and accessories of vehicles 9,012 4.4% -21.7% Machinery and parts thereof 6,528 2.8% -11.0% Computers, parts and accessories 8,576 4.1% 4.7% Textiles 5,749 2.5% -16.8% Other metal ores, metal waste scrap, and 8,096 3.9% -9.4% Refine fuels 5,355 2.3% -26.9% products Iron and steel and their products 4,859 2.1% -12.5% Jewellery including silver bars and gold 7,493 3.6% -32.1% Source: Ministry of Commerce

145

Export and Import Growth by Key Destinations Export growth by key destinations Import growth by key destinations

2017 2018 2019 2020 3M21 35% 2017 2018 2019 2020 3M2021 29.27% 25% 20.64% 25% 14.86% 11.93% 15% 12.50% 15% 9.37% 7.59% 6.15% 5% 0.60% 2.27% 5% 0.45% % YoY

-5% % YoY -5% -15% -10.16% -5.16% -15% -25% ASEAN-5 CLMV EU China Japan USA Total -25% Exports ASEAN-5 CLMV EU China Japan USA Total Imports

2020 3M2021 2020 3M2021 Value Value Value Value Exports Imports

(Million USD)Share (Million USD) Share (Million USD)Share (Million USD) Share 26,996 13.0% 7,782 12.2% ASEAN-5 31,059 13.42% 8,283 12.91% ASEAN-5 CLMV 24,410 10.55% 7,075 11.03% CLMV 12,373 6.0% 3,567 5.6% EU 20,706 8.95% 6,417 10.00% EU 17,278 8.3% 4,600 7.2% China 29,754 12.85% 8,015 10.59% China 49,853 24.1% 14,788 23.2% Japan 22,876 9.88% 6,432 10.03% Japan 27,680 13.4% 8,966 14.1% USA 34,344 14.84% 9,621 13.63% USA 14,853 7.2% 3,605 5.7% Total 231,468 100.00% 64,148 100.00% Total 206,992 100.0% 63,632 100.0%

Source: Ministry of Commerce 146 Challenges: Exports  Export is expected to mediocre in 2021 amid global trade uncertainties and transitions to structural changes Exports

Short-term Challenges  Faltering global demand  THB volatility  US trade policy, e.g. measures to reduce trade deficit from 16 major countries  Trade uncertainties

Key Structural Problems  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

Key Affected Products  Electronics and Electrical Appliances (Structural Challenge)  Fishery and Agriculture Products (US SIMP)  Steel and Aluminum, Washing machine (US tariffs)  Plastic, ICs, Machinery and Electrical Equipment (US-China’ s trade dispute)

Short-term Measures from Authorities  Extending products to catch up with changing consumer trends and Related Parties  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

Long-term Measures from Authorities  Negotiating FTA and regional trade agreements and Related Parties  Relocating factories to GSP eligible countries  Promoting BOI’s privileges which grant 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 April 2019)

147

Tourism industry in Thailand expected to take over 3 years to recover to near pre-COVID-19 level

• The third wave of the COVID-19 outbreak may take longer to ease as compared to %Tourism Revenue to GDP the two previous waves. This is likely to delay the government’s efforts in re-opening the country to international tourists. Meanwhile, the availability of COVID-19 vaccines (%) in Thailand is limited, as inoculations to be given to Thais are scheduled to arrive during 2H21. Given various impacts on the tourism industry, it is expected that the 20% 18.2% 17.9% number of international tourist arrivals in Thailand during 2021 will be lower than prior estimates. Thus, the number of international tourist arrivals in Thailand during 2021 is 11.6% 11.4% now estimated at approximately 0.25 - 1.2 million, against the roughly 2 million 10% 5.2% 2.6% - 3.6% 6.5% 3.0% projected in March 2021. 2.4% - 2.8% 6.6% 0.2% - 0.8% 0% 2.2% • Domestic travel has also been impacted by the third wave of the COVID-19 2018 2019 2020 2021 pandemic. If the outbreak can be controlled during 2Q21, domestic travel will gradually recover by 3Q21. However, it is expected that the number of domestic %Foreign tourism revenue to GDP %Domestic tourism revenue to GDP travelers in Thailand during 2021 will be lower than previous estimates. Domestic %Total toursim revenue to GDP travel is now anticipated at 85-109 million trips, compared to the 90-120 million trips projected in January 2021.

No. of Foreign Tourists and Domestic Trips Tourism Revenue

(Bt bn) (Million Persons) (Million Trips) 172.7 2,994 166.0 180 3,200 2,947 130 50 86.3 85 - 109 1,876 1,912 38.2 39.9 2,200 25-120 80 1,071 1,082 412-567 25 1,200 813 30 474 6.7 0.25 - 1.2 339 387-447 0 -20 200 2018 2019 2020 2021 2018 2019 2020 2021 No. of Foreign tourists (persons) No. of Domestic trips Foreign tourism revenue Domestic tourism revenue Total revenue

Note: As of May 2021, KReseach estimates tourism data for 2020 to 2021

148 Economic Condition Highlights: CAPEX and Investment Cycle

Capacity Utilization by Key Industries Investment value of BOI-approved applications (Total)*

1,100 Integrated Circuits & Parts 809.4 867.5 45.7 900 (+12%) (+7%) 631.1 459.5 700 (-27%) 447.4 361.4 Motor Vehicles (-13%) 59.6 500 (-19%) (-19%)

Value 300 (Bt bn) (Bt

Basic Metal Investment 100 47.3 -100 2015 2016 2017 2018 2019 2020 Rubber & Plastic Products 48.2 Investment value of BOI-approved applications (by Industry)* Chemical & Chemical Products 76.8 500 Paper and Paper Products 75.1 2017 400 300 Textiles 2018 200

37.4 115.49 86.14 (Bt (Bt bn) 56.69 36.76 24.07

100 22.57 19.29 0.41 Tobacco 2019 0 57.7 Value Investment

Food 2020 53.2

Baverages 2M21 56.3 2015 2016 2017 2018 2019 2020

0 20406080100 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 (Data as of Dec 2020) benefits from BOI

149

Property Market: Property developers remain cautious in launching new projects as a result of slowing in housing demand

Supply Side: New Housing Completions and New Projects Launched in BMR* Outstanding Mortgage Loans to Individuals and Property Developers to GDP

1,000 Units % of GDP 30 26.8 140 131 New Housing Completions New Projects Launched 125 25 114 119 120 117 108 111 114 20 16.8 102 15 10.4 100 86 81 10 68 80 73 64 66 68 5 4.7 58 132 133 52 124 127 131 0 60 115 112 109 101 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 84 40 75 22.3 Loans to Property Developers Housing Loans 62 62 49 46 51 50 11.812.3 20 37 6.8  Mortgage loans to GDP are higher than pre-crisis level, due to 0 factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market Demand Side: Transferred Properties in BMR*  Outstanding loans granted to property developers to GDP was

1,000 Units 4.7% in 2020, still lower than pre-crisis level  Supply Side: Overall new housing projects launched in 250 196 197 206 197 2M/2021 decreased by 42.2% (YoY), due to large amount of 200 178 182 174 175 housing supply and effect from Covid-19 146 161 151 159 163 150  Demand Side: On the first 2M/2020, property transactions 100 decreased by 21.2% (YoY), as consumer concerned about 50 26.0 20.5 employment security and increase in household debt. 0  Mortgage NPLs among Thai commercial banks rose to 3.78% in 2020, from 3.71% in 2019

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

150 Household Borrowing Household Borrowing to GDP % NPL for Consumption Loans of Thai Commercial Banks

Old Definition New Definition % of Loans % of GDP 25 19.39 100 89.3 20 79.7 79.4 78.4 79.8 71.8 80 9.3 15 59.3 8.8 7.5 7.6 8.3 13.4 7.1 12.0 12.7 12.3 12.2 60 4.7 10.6 10 8.8 25.2 40 28.9 22.3 23.1 23.1 22.3 22.3 19.6 24.4 18.9 5 2.84 20 15.1 7.7 11.2 29.5 33.5 33.7 33.5 34.3 38.3 0 13.9 24.5 0 11.9 13.2 2001 2005 2009 2013 2017 2020 1994 1996 1997 2010 2012 2014 2016 2018 2019 2020 Commercial Banks SFIs Saving Cooperatives  Household debt to GDP edged up to 89.3% in 2020, and is Non-Bank FIs Others Total expected to rise further in 2021

Old Definition: Data from 1991 – 1997: lending from commercial banks and SFIs to individual persons for consumption only  Household borrowing to GDP is higher than pre-crisis New Definition: Data from 2010 onwards: takes into account individual persons’ outstanding loans from all types of financial level, due to factors such as changes in consumer institutions, including savings Co-ops and non-banks behavior, intense competition among banks, and a more Cross-Country Comparison Debt Service Ratio of Thai households accessible credit market of Household Debt (as of 3Q20) % of GDP %  Thailand’s household debt to GDP is comparable to 160 40 129.2 other countries*; debt service ratio of Thai households 29.1 120 103.8 27.9 28.1 27.2 28.4 is still well below 40%, indicating the household debt 93.3 89.3 30 27.0 69.5 situation is unlikely to trigger any problems in the 80 67.9 62.2 20 foreseeable future 40 10  NPL ratio for consumption loans of commercial banks 0 was at 2.84% in 2020 from 2.90% in 2019 0 2009 2011 2013 2015 2017 2019 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch Source: NSO and KResearch Source: CEIC and KResearch 151

BOT Macro Prudential Policy  New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions

LTV Criteria for Mortgage Loans Criteria for Credit Card / Personal Loans (Effective: January 20, 2020) (Effective: September 1, 2017)

New (Including Top-up loans) Credit Cards Personal Loans Lending Criteria Price and 1st Contract 2nd 3rd Contract New OldNew Old Type of Properties NEW OLD (Apr-19) Contract Onwards Min.Monthly Income Bt15,000 Bt15,000 - - - LTV Limit LTV Threshold LTV Limit LTV Limit Income Credit Line Credit Line Income Credit Line Credit Line House ≤ 100%*≤ 95% 80-90% 70% Credit Line < Bt10mn < Bt30,000 ≤ 1.5 times ≤ 1.5 times Condo. ≤ 100%* ≤ 90% 80-90% 70% (times of average < Bt30,000 monthly income) < Bt50,000 ≤ 3 times≤ 5 times ≤ 3 institutions ≤ 5 times House & ≤ 90% 80% Bt10mn 80% 70% > Bt50,000 ≤ 5 times Bt30,000 ≤ 5 times Condo. (LTV Limit)  For credit card loans, credit line will be raised to 2 times for customers who have monthly income 1) Under the new framework, LTV limit will be capped at 100% for the first contract of below 30,000 Baht per month, effective until December 2021. housing loans, and * loans for furniture and decorations can be added up to 10% of collaterals (old - no these conditions) 2) For the second contact, LTV limit is 80% if the first contract’s installment payments are Criteria for Car Loans 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  Auto Registration Loans (Effective: February 1, 2019): Auto registration loan increase to 75% for the loans for furniture and decorations of the first contract providers to be approved by Bank of Thailand and Ministry of Finance

Regulated by Fiscal Policy Office Regulated by the BOT

Notes: Picofinance* Pico Plus* - August 15, 2019: BOT relaxed the LTV rules for co-signers that have no ownership Capital Fund  Bt5mn  Bt10 mn  Bt50 mn interest in the home being purchased - April 2019: BOT tightened LTV criteria for mortgage loans, and raised down payment Credit Line  Bt50,000  Bt100,00 Depends on debt-servicing ability for the second contract onwards. Interest Rate  36%  36% for first Bt50,000  24% - Year 2009: BOT announced revised criteria in 2009-2010 on mortgage loan risk Ceiling weights with a different effective date  28% for the amount in  24% - Year 2008: Risk weights for mortgage loans dropped from 50% to 35% under Basel II excess of Bt50,000 Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province

152 Thailand’s external balances remain relatively strong compared to peers

High international reserve / Imports (Import Coverage) Low foreign holding ratio in Thai government bonds

30% 27.0% 25.5% 20 23.6% 14.7 20% 15 13.3 14.0% 11.7 12.4 13.1% 10.2 10.4 10 10% 6.0 5 3 months 0% Indonesia South Korea Malaysia U.S. Thailand Months of Imports 0 India Indonesia Philippines Korea Malaysia Thailand Singapore Note: Retrieved from Asia Bond Online, based on latest available data Source: CEIC, KResearch (data as of December 2020) Source: Asian Development Bank, US Department of Treasury High international reserve ratio / External debts

 Thailand’s economy and financial markets are able to 140% 129% withstand impacts from fluctuations in global liquidity due to: 120% 96% 98% 100%  High import coverage (international reserves/monthly 100% 79% 80% imports) compared with the IMF’s three month import 60% 43% coverage guideline 31% 40% 21%  More than 100% of external debt covered by 20% international reserves 0% India Indonesia Philippines Korea Malaysia Thailand Singapore  Low portion of foreign holdings in Thai government bonds compared with other countries

Source: CEIC, KResearch (data as of December 2020), Retrieved on April 2021

153

Monetary and fiscal expansion raises financial stability concerns

In consistent with the Fed, the BOT cut interest rate to Thailand has enough FX reserves support the economy amid COVID-19 outbreak to meet all internal and external obligations

3 months of imports $ Billion $ Billion Reserves backing banknotes FX Reserves 300 300 ST external debt Net Forward Position 250 250

200 200 53.1 150 250.4 150 $281.9 Billion $196.1 Billion 100 100 68.1

50 50 74.8 31.4 0 0 Source: BOT, KResearch Last Update: April 23, 2021 Excess liquid assets in Thai commercial banks slightly rose

Million Baht %LCR 5,000,000 200  Due to a deteriorating economy, the Fed decided to cut its policy 183.5 184.7 190 rate by 1.50% in 2020 to 0.00-0.25% 4,000,000 182.1 178.1 176.9 175.5  Monetary easing leads to a massive exodus of capital from 173.8 180 emerging markets and worsens exchange rate depreciation. 3,000,000 170 However, Thailand’s external stability will likely be maintained  The Thai banking system excess liquidity fell slightly. The CAR 2,000,000 160 2016 2017 2018 2019 2Q20 4Q20 Feb 21 was good (20.1% as of 4Q20) and NPL ratio was still manageable Liquid Assets LCR (%) (3.1% as of 4Q20), with net profits of Bt146.2bn in 2020 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

154 Other Figures

Thai Bond Market Size (Gov't and Private bonds) Bond Yields

16,000 88% 87% 100% % 79% 79% 90% 3.5 14,000 74% 76% 78% 69% 70% 71% 80% 12,000 63% 64% 65% 3.0 57% 56% 70% 10,000 60% 2.5 2.24 1.71 1.82 8,000 50% 2.0 1.60 1.27 1.44 40% 1.5 1.06 6,000 GDP to % 0.87 Billion Baht 30% 4,000 1.0 0.41 0.45 0.53 0.69 20% 2,000 0.5 10,341 11,403 12,577 13,940 13,865 4,888 5,086 6,118 6,962 7,327 8,580 8,992 9,287 9,825 10% 13,297 0 0% 0.0 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 15Y

Thai Bond Outstanding (LHS) Bond Market Size to GDP (RHS) Dec 18 Dec 19 Dec 20 Apr 30,2021 Foreign Holdings of Thai Bonds Current Account and FX Reserve

USD246bn (Mar21) 1200 8% 8% 8% 8% 9% 50,000 300,000 7% 7% 8% 1000 40,000 250,000 6% 6% 6% 7% 6% 6% 30,000 800 6% 200,000 5% 20,000 600 4% 150,000 4% 10,000 USD Billion USD Billion Billion Baht 100,000 400 1% 3% 0 2% 2% 200 1% -10,000 50,000 1% USD-3bn (Mar21) 918 % of Total Bond % Outstanding 49 76 66 280 419 710 708 683 571 664 932 990 857 856 0 0% -20,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21

Foreign Holding Outstanding (LHS) % of Thai Bond Market (RHS) Current Account (LHS) FX Reserves (RHS)

155

Other Figures Credit Card Loans/GDP Million Baht % to GDP 500,000 2.9 3.5 Housing Loans / GDP 2.7 2.5 2.5 2.6 3.0 400,000 2.2 2.4 2.4 2.0 2.0 2.0 2.1 2.5 Million Baht % to GDP 300,000 2.0 200,000 1.5 5,000,000 26.8 30 1.0 100,000 23.2 0.5 22.3 22.3 22.6 25 196,599 216,427 228,903 261,553 290,425 318,141 333,493 360,096 394,123 418,747 457,090 457,090 4,000,000 21.0 22.0 19.4 0 0.0 17.7 17.4 18.0 18.3 20 2009 2012 2015 2018 2020 3,000,000 Credit Card Loan Outstanding (LHS) Credit Card Loan to GDP (RHS) 15 Note : 1) Credit card loans represent outstanding credit card loans from commercial banks and non-banks, 2,000,000 10 excluding SFIs, saving cooperatives and others financial Institutions

1,000,000 5 Personal Loans/GDP

1,709,897 1,885,139 2,034,137 2,263,552 2,510,012 2,783,129 3,021,811 3,251,488 3,448,852 3,706,397 3,918,565 4,172,508 Million Baht 0 0 % to GDP 3.7 2009 2012 2015 2018 2020 700,000 3.4 4.0 Housing Loans for Personal Consumption (LHS) 600,000 3.5 2.4 2.3 3.0 % Housing Loans to GDP (RHS) 500,000 2.2 2.1 2.3 2.3 2.3 2.3 400,000 1.7 1.9 2.5 2.0 300,000 1.5 200,000 1.0 Note : Housing loans represent outstanding housing loans for personal consumption 100,000

213,745 187,491 213,310 257,129 299,139 312,851 318,354 332,996 354,243 383,303 579,911 580,383 0.5 granted to individuals of householders by financial institutions (including 0 0.0 Commercial banks, Finance companies, Credit financiers, SFIs, and Insurance companies but excluding Saving Cooperatives and others financial Institution) 2009 2012 2015 2018 2020 Personal Loan Outstanding (LHS) % Personal Loans to GDP (RHS) Source: BOT, NESDB Note : 1) Personal Loans represent outstanding personal loans under supervision (including commercial banks and non-banks, excluding SFIs, saving cooperatives and others financial Institution) . 156 Other Figures Loans to GDP as of 2020 Thai Banks’ Net Loan Growth and NPL Ratio

United States 67.1 % YoY % to Total Loans Thailand 90.5 18 5.23 6 15 5 South Korea 98.4 3.89 12 3.25 2.94 2.99 3.08 3.09 3.14 4 Japan 100.4 9 2.69 2.44 2.31 2.31 3 Malaysia 129.4 6 2 3 12.5 15.1 14.0 10.5 4.2 3.4 1.3 4.3 5.2 1.9 6.1 Singapore 144.7 % of GDP 0 1 -0.5 China 170.0 -3 0 2009 2012 2015 2018 2020 0 20406080100 120 140 160 180 %YoY Net Loan Growth %Gross NPL Ratio

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 Note : %YoY Net loans represent growth of net loans in 14 Thai commercial banks from C.B.1.1 Latest %Gross NPL is as of 2Q20 Credit Card Statistics GDP Per Capita Baht % YoY % YoY 25 19.9 250,000 20 20 11.3 12.8 11.1 8.6 15 9.7 10.2 8.7 5.7 5.4 5.2 6.7 7.2 6.0 200,000 4.0 3.9 1.8 3.2 2.9 10 10 -1.1 5 5.8 14.3 11.0 9.5 4.8 8.0 9.4 6.2 9.2 0.8 0 150,000 -7.3 0 -1.6 -5 -11.3 -10 -13.3 100,000 -10 -15 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Feb 21 50,000 -20

Credit Card Loan Growth Spending Growth 147,364 163,956 170,467 185,159 192,327 195,807 202,151 213,586 225,095 236,861 243,787 225,914 0 -30 Note: The credit card statistics number includes foreign bank and non-bank credit cards 2009 2012 2015 2018 2020 Source: The Bank of Thailand, National Statistical Office (NSO), CEIC Data, and KResearch GDP Per Capita % YoY 157

Other Figures Population and Labor force Unemployment Rate

Million Person % of Labor Force 54.0 54.5 55.0 54.8 55.2 55.6 56.0 56.3 56.6 56.8 60 2.00 1.69 50 1.50 40 1.50 1.18 0.98 1.04 0.99 1.05 30 0.84 0.88 1.00 0.72 20 0.68 0.66 10

38.9 39.4 39.4 38.6 38.5 38.3 38.1 38.4 38.2 38.5 0.50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0.00 Population (Age>= 15 years) Labour Force 2009 2012 2015 2018 2020

Foreign Direct Investment Foreign Direct Investment Position by Countries

Trillion Baht % 100% 10 25 23.2 22.1 22.2 21.8 22.9 23.8 24.7 24.3 25.1 25.1 15.2 13.9 20 80% 9.6 8.2 7.9 8.1 8 11.7 15 9.3 7.5 6.6 6.8 6.7 6.3 7.5 8.9 9.4 6.3 60% 6 2.8 10 30.0 31.7 34.6 35.0 35.1 36.3 35.2 36.2 34.3 33.1 -1.3 -1.6 5 4 40% 0 1.2 1.4 1.9 1.6 1.7 2.3 2.0 2.3 2.8 2.7 -5 16.5 17.0 2 16.1 16.0 16.0 14.0 14.8 14.8 13.4 12.6 4.9 5.6 5.8 6.6 6.5 7.0 7.9 7.7 8.5 9.0 -10 20% 0 -15 19.8 18.2 17.1 17.6 16.3 16.1 16.7 15.5 17.8 20.2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FDI Position (LHS) % YoY (RHS) ASEAN EU China Japan US Others Source: BOT, NESDC, National Statistical Office (NSO), and KResearch Note: - 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 158 For Further Enquiries, Contact KASIKORNBANK Investor Relations:

Chief Investor Relations Officer Tel (66) 2470 2673 to 4 Investor Relations Team Tel (66) 2470 6900 to 1 Tel (66) 2470 2660 to 1 Email: [email protected] IR Website 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

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This document is intended to provide material information relating to investments or products in DISCLAIMER: 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.

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