Investor Presentation As of 1Q13

KASIKORNBANK Investor Presentation as of 1Q13

July 2013

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

KASIKORNBANK at a Glance Established on June 8, 1945 with registered capital of Bt5mn (USD 0.17mn) Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of March 2013) Asse ts Bt2,110bn (USD72.0bn) Ranked #4 with 14.7% market share** Loans* Bt1,356bn (USD46.3bn) Ranked #4 with 14.8% market share** Deposits Bt1,428bn (USD48.7bn) Ranked #4 with 15.1% market share** CAR 15.79% *** ROE (1Q13) 21.23% ROA (1Q13) 1.93% Number of Branches 877 Number of ATMs 7,689 Number of Employees 17,718 Share Information SET Symbol KBANK, KBANK-F Share Capital: Authorized Bt30.5bn (USD1.0bn) Issued and Paid-up Bt23.9bn (USD0.8bn) Number of Shares 2.4bn shares Market Capitalization Bt498bn (USD17.0bn) Ranked #2 in Thai banking sector 1Q13 Avg. Share Price: KBANK Bt204.75 (USD6.99) KBANK-F Bt206.72 (USD7.05) EPS (1Q13) Bt4.22 (USD0.14) BVPS Bt81.85 (USD2.79) 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) *** 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 Exchange rate at the end of March 2013 (Mid Rate) was Bt29.31per USD (Source: Bank of Thailand)

2 Table of Contents Topic Slide Page

Operating Environment 5 - 6

The K-Strategy 7

2013 Financial Targets 8

Composition of Growth 9 - 14

Capital and Dividend 15 - 16

Summary 17

Appendix 18 - 117

Appendix Topic Slide Page KBank ¾ Highlights 19-24 ¾ Strategy 25-35 ¾ Risk and Credit Management 36-40 ¾ Financial Performance 41-60 • 1Q13 Highlights 42-45 • Net Interest Margin 46 • Non-interest Income 47 • Net Fee Income 48 • Net Premium Earned - net 49 • Other Operating Expenses 50 • Loan 51-54 • Asset Quality 55-57 • Investment in Securities and Funding Structure 58-60 ¾ The wholly-owned subsidiaries of KBank 61-68 ¾ Muang Thai Life Assurance (MTL) 69-76 ¾ Other Information 77-80 Banking System and Regulation Update 81-88 Government Policy 89-99 Thai Economic Figures 100-115 IR Contact Information and Disclaimer 116-117

4 Operating Environment: Economic Outlook for 2013

Key GDP Forecasts and Assumptions Key Points: Private consumption and investment are expected to grow, albeit at a sharply decelerating rate Due to an economic slowdown in China, Thailand’s main export destination, and weak global sentiment, a robust recovery is unlikely in Thai exports in 2H13. Thus, exports are expected to expand rather modestly in 2013 % YoY 2011 2012 2013F Range Base Given this weaker economic outlook, GDP growth Case forecast for 2013 was revised down to 4.0% (base case) GDP 0.1 6.5 3.8-4.3 4.0 with the forecast range between 3.8%-4.3% Private Consumption 1.3 6.7 2.3-2.8 2.6 Total Investment 3.3 13.2 2.8-3.8 3.3 Gov. Budget Deficit (% of GDP)* -3.3 -2.8 -2.9 to -2.2 -2.7 Risk Factors: Exports 14.3 3.2 2.0-7.0 4.0 Lingering global economic uncertainties, especially China Imports 24.9 7.8 3.5-9.0 5.7 Current Account (USD bn) 5.9 2.7 -2.1 to 0.7 -0.5 Geopolitical risks Headline Inflation 3.8 3.0 2.2-2.7 2.5 Uncertainties in domestic politics and progress in the Policy Interest Rate** 3.25 2.75 2.50 2.50 public investment plan

Note: * Does not include borrowing under the emergency decree for water resource management Source: KResearch (as of June 28, 2013) and **KBank Capital Markets Research (as of June 21, 2013)

Operating Environment: Economic Outlook for 2013 Government Stimulus Plan (App. pages 89-99) Uncertainties remain regarding the implementation of Water Resource Management and the infrastructure development project. Satisfactory progress in the disbursement of these extra-budgetary funds in 2013 is not expected, however, there is a high degree of hope that these projects will be fully implemented in the next and subsequent years Outlook on Europe, the US, China, and ASEAN Global economic growth is expected to modestly rise: ¾ The Eurozone should experience progress in measures which are already in the pipeline, such as the establishment of a banking union. This development, plus existing financial supports, should help prevent the Eurozone from slipping into a severe economic spiral ¾ The US may experience headwinds from sequestration and the expiration of payroll tax cut measures before gaining traction in 2H13 ¾ The Chinese economy recently revealed weakness underlying its banking system. Meanwhile, the subdued global economy seems to be suppressing its exports ¾ ASEAN economies will likely resume their recovery, given the benefits of regional economic integration as well as their flexibility in pushing forward fiscal and monetary policies needed to withstand impacts from lingering global economic uncertainties Outlook on Inflation (App. pages 103 and 105) Headline inflation is benign in 2013 as a result of: ¾ Stable oil prices ¾ Baht appreciation, which may reduce production costs as well as import prices ¾ Continuation of government measures to assist cost of living (i.e. LPG subsidy for household use and reduction of excise tax on diesel) Outlook on Exports and Tourism (App. pages 104 and 106-107) Exports will slightly expand, due mainly to subdued global economic sentiment and China’s slowdown Tourism will likely register double-digit growth, supported by an increasing number of Chinese tourists, as well as regional integration Outlook on CAPEX cycle (App. page 108) Capacity utilization is unlikely to improve, consistent with a weak MPI. This is mainly due to weak external demand for Thai exports, especially those in the global supply chain. Hence, the new investment cycle may be delayed, pending FDI flow Baht (App. page 101) Thai Baht will stay under depreciation pressure in the near-term due to portfolio outflows, larger trade deficits, and global market risk aversion; the Baht looks oversold and will likely rebound to 30.00 by year-end as the market reassesses Q.E. exit timing Source: KResearch and KBank Capital Markets Research (as of June 28, 2013)

6 The K-Strategy

Long-Term Risk-Adjusted Sustainable Profitability Customer Centricity

Customer Strategy TO BE CUSTOMER’S MAIN BANK PRODUCTPRODUCT && SOLUTIONSOLUTION BRANDINGBRANDING && MARKETINGMARKETING SERVICESERVICE QUALITYQUALITY Clear & consistent communication ExcellentExcellent customercustomer experienceexperience InnovateInnovate && bebe responsiveresponsive Clear & consistent communication atat allall channelschannels

KASIKORNBANK, its wholly-owned 8 Customer Segments* 4 Product Domains subsidiaries, and its strategic partner I N T E G R A T I O N The Way We Work +

Strategic Understanding Innovative & Managing Sales & Service Proactive Risk Capabilities Customer Needs Products Excellence Management

Note: * The definition of eight customer segments can be found in App. page 26

2013 Financial Targets (Consolidated)

2012 Actual 1Q13 Actual 2013 Targets Notes

ROE 20.76% 21.23% N/A ROA 1.86% 1.93% N/A NIM 3.58% 3.49% 3.4-3.6% System ranking maintained (Page 46) Loan Growth 9.57% 2.19% YTD 9-11% Decent and sustainable loan growth; in line with economic growth (Page 9 and 51-54) 11.12% YoY Non-Interest Income Mainly driven by fee income and insurance business; net fee 19.72% 16.72% YoY Mid-teens income to grow up to mid-teens** and net premium earned-net Growth* to grow up to 20% in 2013 (Page 12-13 and 47-49)

Approximately Bt2bn plus Higher provision was set aside to serve as countercyclical Provision Average per Q Bt2.1bn Bt3.5bn Countercyclical Provision provision; credit cost revised up to range between 70 - 80+bps in 2013; prudent and aligned with global market environment Low cost to income ratio in 1Q13, to reflect normal seasonal Cost to Income Ratio 45.00% 40.02% Mid-40s pattern; cost to income ratio will range in mid-40s (Page 14) Manageable with lingering global economic environment NPL Ratio (Gross) 2.16% 2.09% Below 2.4% (Page 11 and 55)

Note: * Non-Interest Income includes Net Premium Earned - net (Net Premium Earned less Underwriting Expenses) from Muang Thai Life Assurance (MTL); KBank has a 38.25% economic interest in MTL ** On the consolidated basis, Bancassurance fees are not included, due to the elimination of inter-company transactions (the accounting treatment from the Muangthai Group Holding consolidation)

8 Composition of Growth: Loans by Business Loan Portfolio Y2013 Loan Growth Target: 9-11% Corporate Loans: 4-6% Consolidated Amount (Bt bn) %YTD Growth % Yie ld Ra nge Loan Growth ¾ Growth target on long term investment and high capacity Dec12 1Q13 1Q13 1Q13 Target (Y2013) utilization industries and a focus on international trade Corporate Loans 416 424 2.1% 4-6% 4-6% customers SME Loans 469 473 0.8% 7-8% 10-12% ¾ Focused Industries: Auto & Parts, Construction Materials, Retail Loans 347 350 0.9% 6-7% 10-13% Food & Beverage, Commerce and Transportation Other Loans 95 109 14.3% - SME Loans: 10-12%

Total Loans 1,327 1,356 2.2% 6.3% 9-11% ¾ Growth target reflects high demand from domestic consumption and international trade benefits from the FTA and AEC Loan Portfolio Structure ¾ Focused Industries: Construction Materials, Construction, (Bt bn) 1,327 1,356 Hardware, Auto & Parts, Commerce, and Service 1,500 Retail Loans: 10-13% 7% 8% ¾ Align target growth of mortgage loans with industry 26% 26% Other Loans ¾ Focus on high yield products: K-Credit Card & K-Express Cash 1,000 Retail Loans SME Loans 36% 35% Corporate Loans 1Q13 Loan Growth: 2.2% YTD and 11.1% YoY 500 Corporate Loans: 2.1% YTD

31% 31% ¾ Mainly from short-term domestic and trade financial credit in 0 Construction Materials, Financial Institution, Petroleum & 2012 1Q13 Petrochemical Product, Service, and Real Estate SME Loans: 0.8% YTD Loan Definition (more details on loans can be found in App. page 52-53) Corporate Loans: Loans of KBank and KBank’s Subsidiaries in Corporate Segments ¾ Mainly from long-term credit; increased also in Commerce, (Annual sales turnover > Bt400mn) Gems & Jewelry, and Transportation SME Loans: Loans of KBank and KBank’s Subsidiaries in SME Segments (Annual sales turnover ≤ Bt400mn) Retail Loans: 0.9% YTD Retail Loans: Loans of KBank and KBank’s Subsidiaries in Retail Segments ¾ Mainly from mortgage loans, slow growth in line with industry Other Loans: Loans in Enterprise Risk Management Division and seasonal effect. K-Express Cash shows highest growth (NPL + Performing Restructured Loans), and other loan types with lower NPL than industry

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

Deposits Growth and Loans to Deposits Ratio March 2013 (Consolidated)

Deposits & B/E Loans to Deposits Ratio (Bt bn) 1,500 1,391 1,428 100% 97.9% 97.5% 1,242 96.5% 1,200 1,100 95.4% 94.9% 975 95% 900 94.7% 94.1% 93.5% 93.8% 600 92.8% 90% 300 33 52 36 19 17 0 85% 2009 2010 2011 2012 1Q13 20092010201120121Q13

Deposit B/E Loans to Deposits Loans to Deposits + B/E

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Deposits (Bt bn) 975 1,100 1,242 1,391 1,306 1,428 1,391 1,428 Deposit (% YoY) 0.8% 12.8% 12.9% 12.0% 10.4% 9.39% 12.0% 9.39% Deposit (% YTD) 0.8% 12.8% 12.9% 12.0% 5.1% 2.65% 12.0% 2.65% Loans to Deposits (%) 96.5% 97.9% 97.5% 95.4% 93.4% 94.9% 95.4% 94.9%

10 Asset Quality and Impairment Loss of Loans and Debt Securities (Provision) March 2013 (Consolidated)

Provision Coverage Ratio NPL ratio improved to 2.09% in (%) 1Q13, against the 2013 target of (Bt bn) 150 131.83 138.62 127.12 below 2.4% 10 9.4 111.02 8.4 91.64 7.8 7.3 Coverage ratio was 138.62%; this 8 6.7 100 88.38 5.9 ratio has been maintained above 6 5.4 3.7 3.5 73.90 100% since 2Q10 4 50 66.60 70.96

2 In 1Q13, KBank set aside a higher

0 0 provision expense, amid economic 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 expansion and satisfactory performance of the Bank, to serve NPL Ratio and Credit Cost as a countercyclical provision to (%) (bps) 10 200 prepare for any potential future 8.88 economic downturn or changing 8 150 6.85 105 economic circumstances, both 6 102 93 Credit Cost 4.44 100 domestic and abroad NPL ratio 4 66 64 66 83 82 3.76 50 In 2013, average provision per 2 60 3.09 2.91 2.45 2.16 2.09 quarter is estimated to be 0 0 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 approximately Bt2bn, plus the countercyclical provision; credit cost expected to move between 70 - 80+ bps

Composition of Growth: Net Fees and Non-interest Income March 2013 (Consolidated) Total Operating Income - net Non-interest Income Ratio and Net Fee Income Ratio Non-interest income (Bt bn) 104.31 50 (%) 120 90.51 (+15%) 39% 40% accounted for 40% of total 40 38% 38% 75.14 (+20%) net operating income; net fee 80 (+22%) 39% 30 38% 24% 23% 23% 25% income was 25% in 1Q13 38% 28.70 20 40 (+16% YoY) 62% 61% 62% 40% 10 Non-interest income rose, 60% 0 0 driven mainly by fee income 2010 2011 2012 1Q13 2010 2011 2012 1Q13 and life insurance premiums Net Interest Income Non-interest Income Non-interest Income Ratio Net Fee Income Ratio Non-interest Income Net Fee Income Net fee income continues to (Bt bn) 40.72 Other Operating Income (Bt bn) 24.47 be focused on non-loan (+20%) (+19%) related fees such as 40 34.02 3% Fee and Service Income - net 24 20.64 (+20%) 18.23 (+13%) transaction services and card 28.40 4% (+14%) (+31%) Net Premium Earned - net business; higher cross- 30 2% 18 60% selling capabilities will also 61% Dividend Income 12 help grow fees 20 64% 7.14 11.50 Share of Profit from Investments (+30% YoY) (+17% YoY) on Equity Method 18% 2% 6 Net fee income in 1Q13 rose 10 16% 62% Gain on Investment 14% 3% 2% 2% 0.04% mainly thru credit card, debit 0.02% 2% 0.05%2% 2% 2% 19% 0.05% 0 16% 15% 14% Gain on Trading and FX card, and ATM fees, 12% 2% 0 transactions 2010 2011 2012 1Q13 including fees from KAsset 2010 2011 2012 1Q13 Note: and KSecurities; the Bank - Non-interest Income Ratio = Non-interest Income/Total Operating Income - net will continue to focus on - Net Fee Income Ratio = Net Fee Income / Total Operating Income – net - Net Premium Earned - net = Net Premium Earned less Underwriting Expense non-loan related fees

12 Net Fee Income Structure (Bank only) March 2013 Net Fee Income by Product

Others Credit Card 10% Credit Card Business (mainly from credit card merchant fees) Business Transaction Services (such as ATM & debit cards, bill payments, money transfers, etc.) Bancassurance 15% Commercial Credit (mainly from commercial credit related fees) 16% Cash Management (such as fees from payroll accounts) Transaction Trade Finance Services Trade Finance (fee income obtained from selling Bancassurance products) 25% Bancassurance 6% Others (such as mutual funds, securities services, capital market business, etc.) Cash Commercial Management Credit 6% 22%

Loan Related and Non-loan Related Fees - net Note: - On the consolidated basis, Bancassurance fees are not included, due to the elimination of inter-company transactions (the accounting treatment from the Muangthai Group Holding Loan related consolidation) 23% - On the consolidated basis, Net Premium Earned - net (Net Premium Earned Less Underwriting Expenses) from Muang Non-loan related Thai Life Assurance (MTL) is reported as a part of non-Interest 77% Income; KBank has a 38.25% economic interest in MTL

Cost to Income Ratio March 2013 (Consolidated) Cost to Income Ratio Cost to Average Assets Ratio

70 (%) 6 (%) 60 50.92 50.57 47.53 45.00 50 40.02 40 4 2.61 2.47 30 2.63 2.19 20 2 10 0 0 2009 2010 2011 2012 1Q13 2010 2011 2012 1Q13 1Q13 cost to income ratio was low, reflecting a normal seasonal pattern Y2013 cost to income ratio is expected to range in the mid-40s Cost management is in place in key areas

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Cost to Income Ratio (%) 50.92 50.57 47.53 45.00 41.42 40.02 50.49 40.02 Cost to Average Assets Ratio (%) n.a. 2.61 2.63 2.47 2.29 2.19 2.69 2.19

14 Capital (Reported Number: Excluding Net Profit of Each Period) March 2013 Bank only KASIKORNBANK FINANCIAL CONGLOMERATE* Basel II Basel III** Basel II Basel III** 18 (%) 15.98 15.44 18 (%) 15.64 15.79 13.96 13.81 15 15 13.40 13.41 5.55 4.36 5.20 4.32 12 4.59 4.18 12 4.27 3.84 9 9 6 10.43 11.08 6 10.44 11.47 9.37 9.63 9.13 9.57 3 3

0 0 2010 2011 2012 1Q13 2010 2011 2012 1Q13 Tier1 Tier2 Tier1 Tier2 Capital adequacy remains sufficient to support business growth

Basel II Basel III 2010 2011 2012 1Q13 Bank only CAR (%), excluding net profit of each period 13.96 13.81 15.98 15.44 Tier 1 (%), excluding net profit of each period 9.37 9.63 10.43 11.08 KASIKORNBANK FINANCIAL CONGLOMERATE CAR (%), excluding net profit of each period 13.40 13.41 15.64 15.79 Tier 1 (%), excluding net profit of each period 9.13 9.57 10.44 11.47 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 details on Basel III regulation can be found in App. page 84-85

Dividend Dividend Per Share Dividend Payout Ratio

(Bt) 3.00 (%) 3.0 50 2.50 2.50 2.50 42.49 2.5 40 2.00 2.00 32.33 32.14 2.0 1.75 30.55 31.88 30 1.5 1.25 21.36 20 15.45 1.0 1.00 27.00 22.12

0.5 10

0.0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Interim Dividend

Dividend policy: both operating results and long-term returns to shareholders are taken into consideration in determining dividend payments

2004 2005 2006 2007 2008 2009 2010 2011 2012 Dividend Per Share (Bt) 1.00 1.25 1.75 2.00 2.00 2.50 2.50 2.50 3.00 Dividend Payout Ratio (%) 15.45 21.36 30.55 31.88 32.33 42.49 32.14 27.00 22.12

16 Summary

Customer-centric strategy effectively executed on new IT business capabilities: the data-mining, analytic campaign management, and multi-channel of sales and services platforms has already enhanced our capability to quickly acquire new customers; the result is a top-notch total customer experience and strong market positions

Balanced growth: loans to grow in-line with economic expansion; appropriate liquidity maintained; asset quality sustained with slightly higher credit costs reflecting countercyclical provision policy, and high loan loss reserves; strong non-interest income growth; stable cost to income ratio; strong ROE maintained

Adequate capital: Above 10% Tier 1 ratio based on Basel III consolidated basis

Appendix

18 KBank: Highlights

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 To be #1 in Corporate Bond Underwriting To be #1 in Cash Management in 2013 Services in 2014 30% 26% 30% 30% 24% 25% 23% 23% 23% 20% 21% 17% 19% 20% 20% 18% 20% 15% 14% (#1) (#1) (#1) (#1) (#2) (#2) (#2) 10% 10% (#2) (#1)10% (#2) (#2) (#3) (#2)

0% 0% 0% 2009 2010 2011 2012 2009 2010 2011 2012 2013F 2009 2010 2011 2012 Source: KBank Customer Survey Source: ThaiBMA Source: KBank Customer Survey Performance and Market Position Maintain #1 in Main Bank Status and aim to be the #1 Trusted Partner Bank in Thailand through comprehensive fund raising solutions, integrated cash management solutions and value chain solutions Leverage industrial expertise capability in utility, real estate, transportation and commerce, etc; in 2012 our executives were invited to speak at seminars on green business and urbanization Striving to be a knowledge-based organization for family business (KFAM Club) Ranked #1 in outright trading volume of corporate bonds with 29% market share, and #2 in corporate bond underwriting with 17% market share in 2012; leading position in syndicated loan arranging with acclaimed expertise in power and petrochemical sectors A top player in transactional banking services; 23% market share in cash management services, 31% market share in trade finance, and 39% market share in security services (MFS) in 2012 Awards: Best domestic providers of FX services 2012 (Asiamoney), Best FX bank for Corporates and FIs in Thailand 2012 (Alpha Southeast Asia), Thailand Capital Market Deal 2012 (IFR Asia Magazine), Best Cash Management 2012 (Alpha Southeast Asia) Network Coverage: 63 Corporate & SME Service Centers, 6 Corporate Business Centers, and 26 Cheque Direct Service Offices (March 2013) Note: Main Bank Status = % of customers in the market who use KBank and its wholly-owned subsidiaries as their main operating bank and/or main saving and investing bank and/or main borrowing bank

20 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

30% 30% 28% 29% 30% 27% 29% 30% 27% 27%

20% 20% (#1) (#1) (#1) (#1) (#1) (#1) (#1) (#1) 10% 10%

0% 0% 2009 2010 2011 2012 2009 2010 2011 2012 Source: KBank Customer Survey (updated annually) Source: KBank Customer Survey (updated annually) Performance and Market Position Strengthened #1 Main Bank position by acquiring new trade credit customers and offering effective cross-selling cash management solutions and packages Strengthened #1 position in SME market – “Bank for SMEs” Targeted to be SME market leader in all areas Improved market share from 29% in 2010 to 30% in 2011; market share maintained at 30% in 2012 Improved capital usage efficiency by increasing total income to loan ratio Only bank to offer a 2-day credit approval process for small and micro SMEs, with receipt of funds within 5 days Only bank to offer comprehensive solutions to SMEs through K SME Care program (launched in 2006, with a total of 19 classes and about 10,000 participants so far) and K SME Care Knowledge Center (established in 2009) Network coverage: Network coverage includes 877 branches, 177 SME business centers, 63 Corporate & SME service centers, 6 Corporate business centers, and 26 Cheque direct service offices (March 2013) Note: -SME Business in Thailand accounts for 37.9% of Thailand’s GDP, or Bt3.4trn; 2.8 million SME customers with 0.57 million registered as legal entities (as of June 2010); supported by the government to become a key factor in economic and social growth -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 21

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

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

(% Market Share) Ranked # 1 in both total and new (% Market Share) Ranked #1 in Mutual Fund AUM (% Market Share) business premium (KAsset) 30% 30% 15% Maintaining good quality portfolio with lowest %NPL ratio 25.02% 23.47% 22.98% 25.52% among large commercial banks 25% 22.08% 22.26% 22.74% 23.72% 24.31% 23.70% 20.47% 19.16% 20.78% 20% 15.77% 9.56% 9.38% 20% 10% 8.81% 9.25% 16.13% New 7.67% 15% (#2) (#1) Business (#1) (#1) ( #1) (#1) (#1) (#2) (#2) (#1) 10% (#2) (#2) (#1) Total 10% (#2) (#3) (#2) Premium 5% (#3) (#3) (#2) (#3) 5%

0% 0% 0% 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 Performance and Market Position Strong market penetration to affluent customers with 72% penetration in 1Q13 (constant increase from 40% in 2010) Bancassurance: MTL claims #1 position of Total Premium and New Business Premium in 1Q13 Mutual Funds: KAsset maintains #1 position with high net increase in AUM and wider gap with 2nd player Mutual Funds + Private Funds + Provident Funds: KAsset maintains #1 position with highest total AUM for the fifth consecutive year Mortgage Loans: Ranked top 3 with 9.25% market share in 1Q13 with conservative growth (in line with industry) and maintaining good quality portfolio Credit Cards: KBank ranked #2 in total spending and number of cards, with high spending volume of Bt59bn and 2.7mn cards; ranked #1 in card-accepting merchant services (such as EDC, payment gateway, etc.) with 33% market share by volume in 1Q13 Debit Cards: Maintain leader position in 1Q13 with new attractive spending campaigns to match customer lifestyles, resulting in the highest debit card spending in the industry Market leader in Digital Banking, with 60% market share of Thailand Digital Banking users (Brand of Thailand Website, December 2012) and #1 Digital Banking top of mind Brand perception rating (Nielsen, 2012) Network Coverage: 877 branches; 7,689 ATMs; 1,464 CDMs; 146 K-Lobby; and 39 THE WISDOM Centers and Corners (March 2013) Note: * Total Premium = New Business Premium (NBP) + Renewal Premium; New Business Premium = First Year Premium (FYP) + Single Premium (SP)

22 Channels Branch ATM K-Lobby *** 1,000 975 (+110)

New 9,000 102 7,603 7,689 8,294 240 232 877 Branch 865 (+72) Model* 7,500 7,471 7,366 6,955 200 35 816 30 805 6,000 (+691) 160 (+106) (+30) (+5) 146 800 782 126 4,500 (+237) (+86) 120 103 873 (+1,853) (+516) (-105**) 99 842 77 (+23) (+11) 835 (+38) 3,000 (+120) 80 (+23) (+20) (+7) (+4) (+19) (+22) 1,500 40 (+33)

600 0 0 2009 2010 2011 2012 1Q13 2013F 2009 2010 2011 2012 1Q13 2013F 2009 2010 2011 2012 1Q13 2013F Key Strategies in Channel Expansion 2009 2010 2011 2012 1Q13 Branch 782 805 816 865 877 Branch: provide customer service - Bangkok and Metro 46% 46% 46% 45% 45% ¾ Increase number of branches to 975 by year-end 2013 (including “new branch model”) - Upcountry 54% 54% 54% 55% 55% ATM 6,955 7,471 7,366 7,603 7,689 ¾ Expand branch and “new branch model” to potential area for high competitiveness - Bangkok and Metro 52% 51% 52% 51% 50% ¾ Expand branch size in high traffic/strategic areas to better serve customers - Upcountry 48% 49% 48% 49% 50% ¾ Relocate low use branches to more convenient areas CDM 973 1,014 1,067 1,398 1,464 ¾ Begin expansion of “new branch model” in 4Q12 to match customer lifestyles, - CDM (Deposit) 973 1,014 1,016 1,066 1,083 especially in BTS and Hypermart areas - CDM (Deposit & Withdraw) 51 332 381 K-Lobby 77 99 103 126 146 E-Channel: provide customer convenience Note: * “New Branch Model” is a new modern-lifestyle branch model aiming to provide ¾ #1 in number of Cash Deposit Machines (CDMs) in Thailand; utilize duo-function more convenience to targeted customers. This type of branch is designed to be smaller in size and equipped with an electronic banking machine and a small staff; CDMs (deposits & withdrawals) to increase efficiency, enhance service coverage hence, it is cost efficient to operate and improve customer convenience ** A drop in the number of ATMs reflected a relocation plan ¾ #1 in number of K-Lobby in Thailand; increase number of K-Lobby to 232 in 2013 *** K-Lobby is an electronic banking service with multiple functions such as K-ATM, K-CDM (Cash Deposit Machines), and K-PUM (Passbook Update Machine). ¾ Relocate ATMs to provide more convenient service to customers K-Lobby is available to serve customers both outside of branch offices and as stand-alone machines in areas without branches

Sample of Channels Branch New Branch Model

A new modern- lifestyle branch model aiming to provide more convenience to targeted customers. This type of branch is designed to be smaller in size and equipped with an electronic banking machine and a small staff; hence, it is cost efficient to operate

Branch @ Department Stores Mini Branch @ BTS

THE WISDOM Center and Corner K-Lobby Digital Banking

An exclusive An electronic center banking service Sample of Digital Banking providing a full with multiple • K-Mobile Banking range of functions such as • K-Cyber Service services and K-ATM, K-CDM (K-Cyber Banking, K-Cyber facilities to the (Cash Deposit Trade and K-Cyber Invest) High Net Machines), and Worth K-PUM (Passbook • K-Payment Gateway Individual and Update Machine). • K-Merchant on Mobile Affluent K-Lobby is (mPOS) segments available to serve customers both outside of branch offices and as stand-alone THE WISDOM Lounge at Sofitel So Bangkok machines in areas without branches

24 KBank: Strategy

Eight Customer Segments

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

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

Individual or company with annual sales >Bt50mn to Bt400mn Medium Business

Individual or company with annual sales ≤ Bt50mn, and with SME Small & Micro Business commercial credit limit < Bt15mn Business

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

Individual wealth with KBank and its wholly-owned subsidiaries* Affluent ≥ Bt10mn to Bt50mn

Retail Retail Individual wealth with KBank and its wholly-owned subsidiaries* Middle Income Business ≥ 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 ¾ Synergistic portfolio management by monitoring eight customer segments ¾ Offer financial solutions from among KBank, its wholly-owned subsidiaries, and the insurance company ¾ 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

26 Segment Performance Highlights Main Bank Status No. of Customers and Overall Customer Satisfaction

30% 28% 29% No. of Customers (mn) * Overall Customer Satisfaction ** 27% 27% SME Business 15 85 85 86 86 100 24% 26% 83 85 25% Corporate Business 25% 80 24% 20% 23% 10 17% 60 14% 17% Retail Business 11.1 15% 10.9 40 12% 5 10.0 11% 8.0 9.0 10% Main Bank Status = % of customers in the market who 6.9 7.5 20 10% use KBank and its wholly-owned subsidiaries as their main operating bank and/or main saving and investing 0 0 bank and/or main borrowing bank 5% 2007 2008 2009 2010 2011 2012 1Q13 2008 2009 2010 2011 2012 No. of Customers (mn) Overall Customer Satisfaction Average Product Holdings per Customer * Customers in Retail Business Division (RBS) account for 94%, SME Business Division (SME) 6%, and Corporate Business Division (CBS) less than 1% of customer portfolio Old Definition New Definition***

3 ** Customer Satisfaction Index are calculated using the weighted average of customer satisfaction 2.78 2.81 2.82 index from our eight customer segments (Overall) 2.69 2.46 Customer-centric strategy and new IT capabilities have helped improve 2.15 segment performance over the past few years

10 1.69 Segment benefits: ¾ No. of customers grew 61%, from 6.9mn in 2007 to 11.1mn in 1Q13;

1 new customers grew 2% YTD from Y2012 2007 2008 2009 2010 2011 2011 2012 (New) (New) ¾ Main Bank Status and Market Penetration increased on track with 5 (By Business Division) 4.41 4.59 our customer segment aspirations 3.54 3.12 3.11 3.30 3.04 2.82 2.86 2.67 2.48 ¾ Average product holdings per customer increased as a result of 2.17 2.69 2.80 RBS higher cross-selling capability; the overall average product holdings 1.71 2.14 2.56 SME 1.83 2.10 2.12 per customer rose to 2.82 in 2012, from 2.69 in 2011 1.44 CBS 0 ¾ Overall Customer Satisfaction increased from 83 in 2007 to 85 in 2007 2008 2009 2010 2011 2011 2012 (New) (New) 2012; the index for retail customers exceeded the World Finance *** In 2012, the Average Product Holding calculation is adjusted in all eight customer Industry Norm segments to align with our better understanding of customer behavior; 2011 numbers were restated for comparison purposes 27

Revenue by Eight Customer Segments March 2013

Loan Average Non-interest income * Portion Loan Yield (%)

Multi-Corporate Business 4.5% Multi- Mass 16.8% Corporate Large 10% Business Corporate 12% Large Corporate Business 4.6% Business 17.6% 8% Middle Income Medium 6.7% 28% Business Medium Business 22.0% 12%

Small & Affluent Small & Micro Business Micro 17.2% 9.7% 11% Business High Net Worth Individual 0.3% 4.3% 14% 3.2% High Net Affluent 5.3% Worth Middle Income 22.3% 6.9% Individual 5% Mass 0.6% 9.6%

* 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

28 KASIKORNBANK to Capture AEC Opportunities China Model: 3 Branches including Shenzhen, Chengdu and Hong Kong branch, with 3 ASEAN Economic Community (AEC): Representative Offices in China; ASEAN member countries to become a single aiming to establish AEC Plus Model: KASIKORNBANK China (LII) Business network is market by 2015; free flow of goods & services established with partner and non tariff barrier among 10 member nations banks overseas Greater opportunities available through ASEAN + 3 (China, Japan, and South Korea) To capture AEC opportunities, KBank continues to enhance business in ¾ Domestic base trading ¾ Cross border investment ¾ Foreign customers in AEC

GDP Thailand ASEAN* Higher revenue generation and expansion of Size of Economy (GDP) in USD Trillion 0.37 3.09 customer base 2013 GDP Forecast 4.8%** 5.3%

Contribution to GDP 2012 Y2015 Forecast Note: * ASEAN economic growth are averaged growth among ASEAN member countries (by NESDB) in national currencies (from IMF, October 2012) ** 2013 GDP Forecast is projected by KResearch (As of May 20, 2013) Greater Bangkok*** : Provinces 44 : 56 42 : 58 *** Greater Bangkok includes Nonthaburi, Sumut Prakarn, Nakorn Pathom, Samut Sakhon and Patumthani

KASIKORNBANK to Capture Urban Growth Opportunities Strategic Provinces Project* has been started to capture urban growth opportunities, and to prepare for the upcoming AEC Different industries, customer segments and behaviors in each strategic province in Thailand identified to capture different business opportunities Tourist Hub, Logistic Hub, Education Centre, Industrial Estate, and AEC Linkage are key areas

Bangkok Aspiration is to become no.1 in customer mind in each strategic province Higher revenue generation from both net interest income and non-interest income is expected, with a gradually rising proportion of loan and revenue generation from the upcountry Wider customer base in all customer segments is expected, along with higher Market Penetration, higher Market Share by Value, and higher Main Bank Status As of 1Q13, the portion of KBank’s outstanding loans in Bangkok and its metropolitan area is around 63% vs. around 37% in the upcountry

* In 2012, 14 provinces were selected as strategic provinces Note: Market Penetration = % of customers in the market who use at least one of the products of KBank and its wholly-owned subsidiaries 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 saving and investing bank and/or main borrowing bank

30 Strategic Provinces Project: Highlights in 2012* KBank, its wholly-owned subsidiaries, and Muang Thai Life Assurance (MTL) aim to offer a full range of financial solutions based on customer-centric strategy to capture business in strategic provinces

Corporate Business ¾ Total income earned from corporate customers in strategic provinces increased 8% in 2012 ¾ Successfully launched events to keep a strong relationship with Big Family (Phuket) ¾ Created Marketing Activities for corporate customers such as Professional Family Business Management Business Corporate and Business Matching Activities

SME Business ¾ Total income earned from SME customers in strategic provinces increased 28% in 2012 ¾ Opened six SME hubs in strategic provinces

SME ¾ Built K-SME brand awareness

Business ¾ Launched localized marketing campaign, including branding selling and retention program, to serve customer needs in each strategic province

Retail Business ¾ No. of retail customers grew 12% in 2012, especially from High Net Worth Individual and Affluent ¾ Opened 20 branches in strategic provinces

Retail ¾ Effective marketing communication and massive acquisition via launch of localized event, campaign and Business privileges to match customers’ lifestyle in each strategic province, such as Joyful Festival and Money Expo

Note: * In 2012, 14 provinces were selected as strategic provinces

K-Transformation Project

Strategic Understanding Innovating & Sales & Service Proactive Risk Capabilities Customer Needs Managing Products Excellence Management

Information Know Our Technology Customers Capital (KOC) (ITC) K-Transformation Foundation Capabilities Multi- Financial channel Information Sales And System Services (FIS) (MSS)

K-Transformation Supporting Solution (KSS)

32 New IT Business Capabilities

Key Deliverables and Benefits in 2013 New loan core banking system will start to go live end of 2013 as planned, with gradual ¾ New Core Banking System on Loans: deployment of new loan and deposit core - Open possibilities to capture new business banking solutions and rollout to mitigate new opportunities technology system risk - Help shorten product development time - Enhance product innovation capability Capabilities from new core banking system on loans will open possibilities to capture new ¾ Corporate Payment System Enhancement: business opportunities - Create a Single Cash Management Platform - Better serve customers in the areas of After 2013, gradual deployment of the Payment, Collection (Direct Debit), Balance K-Transformation project will make the project Reporting, and new Cash Management KBank’s new standard business system Front-End platform; the project budget will be included as a part of KBank’s regular annual IT budget ¾ New Branch Sales & Service and Call Center System Enhancement: KBank’s cost to income ratio will range in mid-40s - Create unique and consistent customer experience across channels including new infrastructure

New IT Business Capabilities Highlights Completed foundation and launched Set foundation around sales & services Completed MSS rollout Consolidated MSS across channels basic FIS and KOC for channels and new payments in 1Q12 and ITC launch Average Product Holding 2.78 2.69 2.82 2.46 2.15 1.69

Non-interest Income to Average Asset (%) 2.14 2.20 2.08 1.96 1.97 1.95 1.62

Cost to Income Ratio (%) 53.95 51.54 50.92 50.57 47.53 45.00 40.02

ROE (%) 20.76 21.23 15.73 16.72 15.94 14.35 12.79

Y2007-2008: Old Financial Presentation Y2009 onwards: New Financial Presentation 2007 2008 2009 2010 2011 2012 1Q13 2013 onwards Completed 9Branch 9Pre-deployment of Legacy System; 9New sales & 9Branch 9New basic solution rollout system integration testing In Progress service pilot campaign 9New basic customer analytics and payment system marketing campaign 9KOC rollout integration marketing plan New loan core banking system will 9New basic financial start to go live end of 2013 as management, planned, with gradual deployment of reporting, and budgeting new loan and deposit core banking 9Consolidate sales & services across solution to mitigate new technology channels and advanced campaign capabilities Indicated Benefits 9New branch platform rollout system risk

Note: - In 2012, Average Product Holding calculation was adjusted in all eight customer segments to align with customer behavior; 2011 number were revised for comparison purposes

* - - Since January 1, 2011, financial statements have been reclassified per the Bank of Thailand’s requirements; the 2009 and 2010 financial statements were restated and adjusted for comparison purposes

* - KOC = Know Our Customers; MSS = Multi-Channel Sales and Services; ITC = Information Technology Capital 34 KOC and MSS Capabilities Highlights Key Benefits from KOC No. of product holdings for Retail Customer Portfolio Increases Long-term strategic positioning Old Definition New* 5 Overall Retail Customer Porfolio Developing a constructive and harmonious corporate 4.25 4.34 4.14 4.10 4 3.81 3.86 Contacted either in 2009 or 2010 culture and new IT platform providing unique tools to 3.20 3.31 3.00 3.08 3.04 3 2.52 2.64 2.80 Contacted both in 2009 and 2010 support our customer-centric strategy; overcoming IT 2.17 2.82 2.86 2.86 2.69 2.66 * In 2012, the Average Product 2 2.23 2.48 Holding calculation is adjusted obstacles makes KBank a leader among peers in all eight customer segments 1 to align with our better understanding of customer behavior; 2011 number were Progress and Benefits 0 restated for comparison Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Dec11* Dec12* purposes Acquiring and building unique business and IT Key Benefits from MSS and Lead & Referral capabilities creates thoroughly integrated sales and New Branch Sales & Service Rollout Completed service IT platforms across all channels, generating 822 824 824 877865 800 (No. of Branch) 768 600 revenue and keeping KBank ahead of peers 600 Key Achievement: 427 400 9 Branch roll-out complete 100% 253 (Since March 2012) New Sales & Service System creates faster customer 200 2 5 29 0 responsiveness and a consistent customer 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 experience across channels. Integrated with KOC Volume & Amount of SME Lead Referrals Continue to Increase capabilities, the new MSS system increases Y2012 sharp rise Y2011 impacted reflected MSS campaign execution effectiveness through the branch by flood disaster (+239%) branch roll-out completion since platform; increases lead creation, cross-selling, and March 2012, and low (+541%) base in 2011 up-selling; results in better campaign response rates; (-5%) and increases product holdings and sales per (-32%) customer

KBank: Risk and Credit Management

36 KBank Risk Management Structure The Bank’s organization has been structured to facilitate all aspects of risk management; each business unit’s responsibilities and segregation of duties have been clearly identified in accordance with good internal-control practices

Approve all risk management policies and Board of Directors guidelines; approve risk limits and risk appetites Ensure the adequacy and effectiveness of risk Audit Committee management system and internal controls

Risk Management Committee Oversee and monitor risk management Sub-committee Credit Policy and Risk Management Sub-committee policies and overall risk profile under the Credit Process Management Sub-committee policies and guidelines approved by the Market Risk Management Sub-committee Bank’s Board of Directors Asset and Liabilities Management Sub-committee Operational Risk Management Sub-committee Capital Management Sub-committee

Business functions are accountable for Business Functions Risk Functions managing all risks inherent in their day-to-day activities CBS/ RBS/ ERM SME/ CMB/ CSP Risk functions are responsible for risk management policies, methodologies, and processes in order to effectively measure, monitor, and control all related risks CBS = Corporate Business Division, RBS = Retail Business Division, SME = SME Business Division, CMB = Capital Market Business Division, CSP = Corporate and SME Products Division, ERM = Enterprise Risk Management Division 37

KBank Credit Risk Management Process

PortfolioPortfolio ManagementManagement

Determine portfolio by design i.e., portfolio target setting by key credit concentration dimensions (Country, Industry, Large Customer Group) and other sub portfolio dimensions based on value-based analysis Manage portfolio according to the Bank’s risk appetite and concentration Perform stress testing to identify portfolio weaknesses and proactively prepare appropriate management actions

OriginationOrigination MonitoringMonitoring CollectionCollection && RecoveryRecovery

Enhance decision Monitor customer behavior and Efficient collection and follow- making/supporting tools for detect early warning signs up of customers with late more efficient return and risk Ensure credit condition payments evaluation compliance (e.g. insurance, Restructure viable customers Setup specific prescreening capital injection, project to prevent NPLs criteria for potential industries progress) Foreclose pledged assets to Enhance customer income Take prompt actions to prevent recover loan loss validation process credit deterioration

38 KBank Credit Approval Process

l a Corporate SME Retails

a u MB CB ME Housing Loan/ Credit Card/ n SM n > Bt5,000mn > Bt400 - 5,000mn > Bt50 – 400mn ≤ Bt50mn Secured Consumer Unsecured Consumer

Credit Underwriting Dept. SME Credit and Housing Loan Approval Processing Dept. Unsecured Credit Product Operation Dept.

Policy Lending Formula Lending Formula Lending • Sufficiency of cash flow • Application Score • Application Score • Growth trends and ability to compete • FICO Score • FICO Score • Management experience and depth • Bureau information/Credit • Bureau information/Credit history • Leverage, Liquidity, and asset quality history • Debt service capacity (except Credit Card) • Credit Risk Mitigation • Debt service capacity • LTV (only housing loan/secured consumer) Approval Process • Facilities Structure • LTV

Credit Processing Dept. Unsecured Credit Product Operation Dept. • Legal document • Legal document • Limit set up • Limit set up Bank-wide Risk Asset Review

Retail and SME Business Collection and Recovery Dept. • Customer Review by Relationship Manager (RM) Post Approval • Credit Portfolio Monitoring Unit to facilitate RM in • Automated collection system customer monitoring • Efficiently utilize available behavior scoring and collection tools i.e. SMS, automated letter • Credit Clinic generation, phone

Note: MB = Multi-Corporate Business, CB = Large Corporate Business, ME = Medium Business, SM = Small & Micro Business , FICO = Fair Isaac Corporation

Credit Bureau Summary

National Credit Bureau (NCB)* KBank Practice Two Types of Credit Reports Offered by NCB: KBank’s customers applying for loans ¾ Consumer credit report for individuals ¾ 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 ¾ Customer information (Name, address, (Large companies normally have Required to reliable financial statements) identification number, birth date, occupation, etc.) ¾ Credit information (History of application, approval Corporate Business SME Retail Business history, loan payment history, etc.)

Data Record of Credit Report Multi- Large Medium Small & 4 Customer Segment in Corporate Corporate Business Micro Retail (HN, AF, MI and MA) Business Business Business ¾ Individuals: Credit report remains on file for 3 years Good credit Poor credit Good credit Poor credit ¾ Businesses: Credit report remains on file for 5 years KBank’s Reject KBank’s Reject Policy application Credit application Members: Financial institutions including commercial Lending Scoring banks, finance companies, securities 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

40 KBank: Financial Performance

1Q13 Performance Highlights 1Q13 net profit rose 12.44% YoY, Consolidated 2011*20121Q122Q123Q124Q121Q13 driven by both net interest Net Profit (Bt bn) 24.226 35.260 8.988 9.367 9.212 7.692 10.106 income and non-interest income Profitability Loans grew 2.2% YTD and 11.1% - NIM 3.75% 3.58% 3.58% 3.53% 3.55% 3.53% 3.49% YoY; the YTD growth was mainly - ROE 16.72% 20.76% 22.43% 22.32% 21.14% 16.93% 21.23% - ROA 1.48% 1.86% 2.01% 2.00% 1.89% 1.51% 1.93% driven by corporate business - YTD Loan growth 12.43% 9.57% 0.76% 3.73% 6.32% 9.57% 2.19% NIM slightly declined, in line with - YoY Loan growth 12.43% 9.57% 12.65% 7.62% 7.35% 9.57% 11.12% - YoY net fee income growth 13.22% 18.56% 12.14% 11.85% 13.37% 38.16% 29.52% interest rates, but remained high - YoY non-interest income growth 19.78% 19.72% 19.31% 14.13% 16.12% 30.83% 16.72% Net fee income continued to grow Cost control due to customer-centric strategy; - Cost to income 47.53% 45.00% 41.42% 44.16% 43.54% 50.49% 40.02% Asset quality growth entails strengthening - NPL ratio 2.45% 2.16% 2.35% 2.20% 2.07% 2.16% 2.09% acquisition, retention, and - Coverage ratio 127.12% 131.83% 133.79% 144.57% 142.94% 131.83% 138.62% Loans to Deposits 97.47% 95.35% 93.44% 94.75% 92.06% 95.35% 94.92% cross-selling capabilities Tier 1 Ratio (Bank Only)** 9.63% 10.43% 9.59% 9.76% 10.90% 10.43% 11.08%*** 1Q13 cost to income ratio was CAR (Bank Only)** 13.81% 15.98% 15.48% 15.56% 16.53% 15.98% 15.44%*** low, reflecting a normal seasonal pattern; cost to income ratio will Note: * In accordance with the corporate income tax rate reduction from 30% of taxable profit to 23% in 2012 and 20% in 2013, range in mid-40s KBank recognized a one-time Bt1.9bn impact to the 4Q11 income statement due to deferred tax item adjustments; there was no affect on the business undertakings, profitability, or capital fund of the Bank and its subsidiaries Manageable NPLs, with high ** Under Bank of Thailand regulations, net profit in the first half of the year is counted as capital after approval by the Board of Directors as per Bank regulations. Net profit in the second half of the year is counted as capital after approval of the General coverage ratio maintained 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 1 January 2013 onwards. For KASIKORNBANK FINANCIAL CONGLOMERATE, as of 1Q13, Tier 1 = 11.47%, Tier 2 = 4.32%, and CAR = 15.79%. KASIKORNBANK FINANCIAL CONGLOMERATE means the company under the Notification of the Bank of Thailand re: Consolidated Supervision, consisting of KBank, K Companies and subsidiaries operating in supporting KBank, Phethai Asset Management Co., Ltd. and other subsidiaries within the permitted scope of the BOT’s to be a financial conglomerate

42 Consolidated Financial Statements

Statements of Comprehensive Income (Bt mn) 2011* 2012 1Q12 2Q12 3Q12 4Q12 1Q13 Interest income 83,693 96,174 22,974 23,589 24,393 25,218 25,088 Interest expenses 27,202 32,593 8,055 8,124 8,189 8,225 7,883 Interest income - net 56,491 63,581 14,918 15,465 16,204 16,994 17,205 Fee and serv ice income 26,072 31,429 7,162 7,667 7,933 8,667 9,037 Fee and serv ice expenses 5,435 6,961 1,652 1,703 1,699 1,907 1,901 Fee and service income - net 20,637 24,467 5,510 5,965 6,233 6,760 7,136 Total operating income 122,216 144,495 33,866 36,188 37,629 36,812 40,575 Underwriting expenses 31,707 40,190 9,098 10,311 11,114 9,667 11,872 Total operating income - net 90,508 104,305 24,769 25,877 26,514 27,146 28,703 Total other operating expenses 43,019 46,934 10,260 11,426 11,544 13,705 11,488 Impairment loss of loans and debt securities 7,346 8,390 1,831 1,894 2,018 2,648 3,525 Operating profit before income tax expenses 40,144 48,981 12,678 12,557 12,953 10,793 13,690 Income tax expenses 13,962 11,136 3,043 2,561 3,010 2,522 2,743 Net profit attributable: Equity holders of the Bank 24,226 35,260 8,988 9,367 9,212 7,692 10,106 Non-controlling interest 1,957 2,585 648 628 731 578 842 Statements of Financial Position (Bt mn) 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13 Loans to customers (less def erred rev enue) 1,210,834 1,326,732 1,220,068 1,256,052 1,287,299 1,326,732 1,355,747 Total Assets 1,722,940 2,077,442 1,857,149 1,887,036 2,005,460 2,077,442 2,109,967 Deposits 1,242,229 1,391,380 1,305,687 1,325,630 1,398,295 1,391,380 1,428,318 Total Liabilities 1,555,974 1,876,621 1,677,982 1,703,376 1,812,026 1,876,621 1,896,632 Total Equity attributable to equity holders of the Bank 154,799 184,946 165,719 170,030 178,599 184,946 195,877

Notes: 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 * In accordance with the corporate income tax rate reduction from 30% of taxable profit to 23% in 2012 and 20% in 2013, KBank recognized a one-time Bt1.9bn impact to the 4Q11 income statement due to deferred tax item adjustments; there was no affect on the business undertakings, profitability, or capital fund of the Bank and its subsidiaries

Earnings Before Provision and Tax (EBPT) and Net Profit March 2013 (Consolidated) EBPT Net Profit (Bt bn) (Bt bn) 57.37 60 40 35.26 50 47.49 30 40 37.14 24.23 30.20 20.05 30 20 14.73 17.22 20 10.11 10 10

0 0 2009 2010 2011* 2012 1Q13 2009 2010 2011* 2012 1Q13

EBPT and net profit in 1Q13 grew 18.65% and 12.44% YoY, respectively

2009 2010 2011* 2012 1Q12 1Q13 4Q12 1Q13 EBPT (Bt bn) 30.20 37.14 47.49 57.37 14.51 17.22 13.44 17.22 Net Profit (Bt bn) 14.73 20.05 24.23 35.26 8.99 10.11 7.69 10.11

Note: * In accordance with the corporate income tax rate reduction from 30% of taxable profit to 23% in 2012 and 20% in 2013, KBank recognized a one-time Bt1.9bn impact to the 4Q11 income statement due to deferred tax items adjustment; there was no affect on the business undertakings, profitability, or capital fund of the Bank and its subsidiaries

44 ROA and ROE March 2013 (Consolidated)

ROA ROE

(%) (%) 24 20.76 21.23 2.50 1.93 20 16.72 2.00 1.86 15.73 16 1.38 1.48 12.79 1.50 1.10 12 1.00 8 0.50 4 0.00 0 * * 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13

2009 2010 2011* 2012 1Q12 1Q13 4Q12 1Q13 ROA (%) 1.10 1.38 1.48 1.86 2.01 1.93 1.51 1.93

ROE (%) 12.79 15.73 16.72 20.76 22.43 21.23 16.93 21.23

Net Interest Margin March 2013 (Consolidated) NIM Yield on Earnings Assets and Cost of Fund (%) (%) 5 8 6.24 6.26 Yield on Loans 4 3.48 3.75 3.58 3.49 5.94 3.23 6 5.24 Yield on Earnings Assets 3 5.55 5.42 5.09 4 4.63 2 2.08 1 2.14 1.89 Cost of Fund 2 1.32 1.99 0 1.70 1.81 Cost of Deposit* 1.05 2009 2010 2011 2012 1Q13 0 2010 2011 2012 1Q13 NIM was 3.49% in 1Q13, remaining the highest level among large commercial banks NIM position will be maintained, focusing on the high-yield lending market; pressure from rising competition will remain

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 NIM (%) 3.23 3.48 3.75 3.58 3.58 3.49 3.53 3.49 Yield on Earnings Assets (%) n.a. 4.63 5.55 5.42 5.52 5.09 5.24 5.09 Yield on Loans (%) n.a. 5.24 5.94 6.24 6.24 6.26 6.35 6.26 Cost of Fund (%) n.a. 1.32 2.08 2.14 2.24 1.89 2.00 1.89 Cost of Deposit (%), incl DPA n.a. 1.05 1.70 1.99 1.99 1.81 1.92 1.81

Note: * Cost of deposits including contributions to the Financial Institutions Development Fund (FIDF) and Deposit Protection Agency (DPA)

46 Non-interest Income and Structure March 2013 (Consolidated)

Non-interest Income to Average Assets Non-interest Income Structure (%) (Bt bn) 4 50 Other Operating Income 3 2.20 40.72 1.95 2.08 2.14 1.62 Fee and Service Income - net 2 40 3% 34.02 1 4% Net Premium Earned - net* 0 28.40

2009 2010 2011 2012 1Q13 30 2% 60% Dividend Income Non-interest Income Ratio** 61%

60 (%) 20 64% Share of Profit from Investments 50 11.50 39 40 on Equity Method 35 38 38 40 18% 2% 30 16% Gain on Investment 10 14% 20 2% 3% 62% 2% 0.04% 2% 0.05% 0.02% 2% 2% 10 14% 19%2% Gain on Trading and FX 16% 15% 0.05% 2% 0 0 12% transactions 2009 2010 2011 2012 1Q13 2010 2011 2012 1Q13 Non-interest income continued to grow, mainly from fee income and life insurance earned premium

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Non-interest Income (Bt bn) 21.68 28.40 34.02 40.72 9.85 11.50 10.15 11.50 Non- interest Income Growth (%YoY) n.a. 30.97 19.78 19.72 19.31 16.72 30.83 16.72 Non- interest Income Ratio (%) 35.23 37.79 37.58 39.04 39.77 40.06 37.40 40.06

Note: * Net Premium Earned - net = Net Premium Earned less Underwriting expense ** Non-interest income ratio = Non-interest income / Total operating income-net

Net Fee Income March 2013 (Consolidated) Net Fee Income Net Fee Income to Net Total Operating Income (Bt bn) (%) 30 30 24.47 26% 25% 24% 23% 20.64 23% 20 18.23 20 15.94

10 10 7.14

0 0 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 1Q13 net fee income grew 29.52% YoY, driven by a rise in credit card, debit card, and ATM fees, as well as fee income from KAsset and KSecurities in line with market growth Net fee income growth will continue to be helped by the cross selling capability of our customer-centric strategy Net fee income to net total operating income was 25% in 1Q13; consolidated net fee income reflects the accounting treatment following the MTGH consolidation; Bancassurance fees were not included

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Fee Income (Bt bn) 19.54 22.82 26.07 31.43 7.16 9.04 8.67 9.04 Fee Income - net (Bt bn) 15.94 18.23 20.64 24.47 5.51 7.14 6.76 7.14 Fee Income Growth (%YoY) n.a. 16.77 14.25 20.55 15.42 26.19 37.02 26.19 Net Fee Income Growth (%YoY) n.a. 14.36 13.22 18.56 12.14 29.52 38.16 29.52 Net Fee Income to Net Operating Income (%) 25.90 24.26 22.80 23.46 22.24 24.86 24.90 24.86

48 Net Premium Earned - net March 2013 (Consolidated) Net Premium Earned and Underwriting Expenses Net Premium Earned – net 20 50 (Bt bn) 47.52 (Bt bn) 40.19 40 37.12 15 31.71 30 29.09 25.22 10 20 7.33 14.10 5.41 11.87 5 3.87 10 2.23 2.20 1.94 0.26 0 0 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 Net Premium Earned Underwriting Expenses Net Premium Earned - net Net Premium Earned - net = Net Premium Earned less Underwriting Expense

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Net Premium Earned (Bt bn) 2.20 29.09 37.12 47.52 10.93 14.10 11.21 14.10 Underwriting Expenses (Bt bn) 1.94 25.22 31.71 40.19 9.10 11.87 9.67 11.87

Net Premium Earned - net (Bt bn) 0.26 3.87 5.41 7.33 1.83 2.23 1.55 2.23 Net Premium Earned - net (% Growth YoY) n.a. n.a. 39.84 35.41 61.18 22.17 33.81 22.17

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.

Other Operating Expenses March 2013 (Consolidated)

Other Operating Expenses Structure

(Bt bn) 50 46.93 43.02 Others 40 38.00 25% 25% 27% 0.2% Directors' remuneration 0.2% 8% 7% 30 0.3% 7% 21% 22% Taxes & Duties 20 23% 11.49 Premises & Equipment 10 46% 46% 23% 43% 8% 0.1% 21% 47% 0 Employee's expenses 2010 2011 2012 1Q13 In 1Q13, other operating expenses dropped 16.18% QoQ; the majority came from the seasonal decrease in promotion, advertising, and marketing expenses, as well as employee expenses

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Other Operating Expenses (Bt bn) 31.34 38.00 43.02 46.93 10.26 11.49 13.71 11.49 % Growth (YoY) n.a. 21.27 13.20 9.10 0.23 11.97 10.34 11.97

50 Loan Growth March 2013 (Consolidated) Loan Growth (% YoY) (%) 20 14.43 15 12.43 11.12 9.57 10

0 2010 2011 2012 1Q13 Loans grew sensibly at 2.2% YTD and 11.1% YoY; the YTD growth was mainly driven by corporate business

2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Loans (Bt bn) 1,077 1,211 1,327 1,220 1,356 1,327 1,356 Loan Growth (% YoY) 14.43 12.43 9.57 12.65 11.12 9.57 11.12 Loan Growth (% YTD) 14.43 12.43 9.57 0.76 2.19 9.57 2.19

Loan Structure and Loan Growth Targets March 2013 (Consolidated, TFRS 8: Operating Segments*) Loan Portfolio Structure Loan Structure, Loan Yield and Loan Growth Targets

(Bt bn) (Amount in Bt bn) Dec 12** Y2012 1Q13 YTD 1Q13 Y2013 1,500 1,327 1,356 Loan Loan Yield Range Loan 7% 8% Growth Growth (%) Target 26% 26% 1,000 (%) (%) (%) 1) Corporate Loans 416 5.5 424 2.1 4-6 4-6 36% 35% Multi-Corporate Business 203 5.2 212 4.2 500 Large Corporate Business 212 5.8 212 0.0 31% 31% 2) SME Loans 469 8.7 473 0.8 7-8 10-12 0 Medium Business 260 1.9 258 (0.6) 2012 1Q13 Small and Micro Business 207 18.5 211 2.2

Corporate Loans SME Loans Retail Loans Other Loans 3) Retail Loans 347 16.0 350 0.9 6-7 10-13 4) Other Loans 95 10.8 109 14.3 Total Loans 1,327 9.6 1,356 2.2 6.3 9-11

** December 2012 loan base is not comparable with previous reports, due to customer migration to larger segments and changes to comply with TFRS 8

Loan Definition (TFRS 8: Operating Segments) Corporate Loans: Loans of KBank and KBank’s Subsidiaries in Corporate Segments (Annual sales turnover > Bt400mn) SME Loans: Loans of KBank and KBank’s Subsidiaries in SME Segments (Annual sales turnover ≤ Bt400mn) Retail Loans: Loans of KBank and KBank’s Subsidiaries in Retail Segments Other Loans: Loans in Enterprise Risk Management Division (NPL + Performing Restructured Loans), and other loan types

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

52 Loan by Retail Products March 2013 (Consolidated, TFRS 8: Operating Segments*)

Loan by Retail Products

(Amount in Bt bn) Dec 12** Y2012 Mar 13 YTD % Portion Loan Loan to Growth Growth Total Loan (%) (%) Housing Loans 203 10.1 205 0.7 15.1 Credit Cards 54 27.7 51 (5.4) 3.8 Consumer Loans 37 38.7 39 4.4 2.9 KLeasing 83 29.8 84 1.8 6.2 ** December 2012 loan base is not comparable with previous reports, due to customer migration to larger segments and changes to comply with TFRS 8

Loan Definition (TFRS 8: Operating Segments) 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

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 Portfolio Breakdown by Industry, Currencies, and Interest Rate Consolidated Loan Portfolio by Industry (March 2013) By Top 20 Borrowers (March 2013)

(Bt bn) Top 20 Borrowers 1,600 1,356 5.45% 1,327 1,400 1,211 13.1% 14.2% 1,200 1,077 11.6% Others 942 16.0% 15.8% 1,000 11.4% 16.0% Housing Loans 10.9% 15.5% 13.0% 12.9% Utilities & Services 800 14.0% 12.4% 6.5% By Currencies (December 2012)* 10.7% 6.2% 6.5% Real Estate & Construction 10.8% 5.7% 600 6.3% Manufacturing & commerce US Dollar Other Currencies Agricultural and mining 5.77% 400 0.85% 51.2% 48.9% 48.2% 55.4% 54.3% 200 2.7% 2.5% 2.5% 2.4% 2.4% 0 Thai Baht 2009 2010 2011 2012 1Q13 93.38%

Definition of Loans 1) by industry = Gross loans = Loans to customers less deferred revenue 2) by top 20 borrowers = Loans excluding the wholly-owned subsidiaries of KBank and Phethai Asset By Maturity of Interest Repricing (December 2012)* Management Company 3) by currency = Loans to customers and AIR - net Other 4) by maturity of interest repricing = Loans to customers less deferred revenue 11.9%

6 months and over Note: * The information on loans breakdown by currencies and maturity of interest repricing are disclosed on half year basis Immediate Repricing 16.2% 61.0% < 6 months 10.9%

54 Asset Quality March 2013 (Consolidated)

NPL Ratio Coverage Ratio (%) (%) 8 150 127.12 131.83 138.62 111.02 6 91.64 100 3.76 4 2.91 2.45 2.16 2.09 50 2

0 0 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13

NPL ratio improved to 2.09% in 1Q13 Coverage ratio was 138.62%; this ratio has been maintained above 100% since 2Q10

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 NPL Ratio (%) 3.76 2.91 2.45 2.16 2.35 2.09 2.16 2.09 Coverage Ratio (%) 91.64 111.02 127.12 131.83 133.79 138.62 131.83 138.62

Impairment Loss of Loans and Debt Securities (Provision) and Credit Cost March 2013 (Consolidated)

Impairment Loss of Loans and Debt Securities Credit Cost (Bt bn) (bps)

10 9.38 150 8.39 102 105 8 7.35 6.70 100 6 66 64 66 3.53 4 50 2

0 0 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 Higher provision expense was set aside in 1Q13, amid the economic expansion and the satisfactory performance of the Bank, to serve as a countercyclical provision to prepare the Bank for any potential future economic downturn or the changing economic circumstance, both domestic and abroad Credit cost rose to 105bps in 1Q13; credit cost will range between 70 – 80+ bps in 2013

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Impairment Loss of Loans and Debt Securities (Bt bn) 9.38 6.70 7.35 8.39 1.83 3.53 2.65 3.53

Credit Cost (bps) 102 66 64 66 60 105 81 105

56 Bad Assets Resolution March 2013 (Consolidated) Restructured Loans Outstanding Foreclosed Properties

% of Restructured loans to Total loans Restructured loans (Bt bn) (Bt bn) 30 16% 100 82.38 83.37 77.19 76.70 74.50 12% 80 61.51 67.01 25 60 52.33 8% 78% 18.7 17.3 76% 78% 74% 78% 20 9.1% 8.2% 62% 78% 16.1 16.7 6.9% 40 15.9 7.4% 6.9% 6.3% 6.2% 6.1% 73% 15.1 4% 12.5 20 15 12.1 38% 27% 22% 24% 22% 26% 22% 22% 0% 0 2006 2007 2008 2009 2010 2011 2012 1Q13 2006 2007 2008 2009 2010 2011 2012 1Q13 10 % of Pe rforming Re structure d loa ns to Re structure d loa ns % of Non-Performing Restructured loans to Restructured loans 5 Outstanding Restructured Loans was Bt83.37bn in 1Q13; 78% were performing restructured loans Definition: Outstanding Restructured Loans is the accumulated outstanding amount of restructured loans, comprised of performing restructured loans and non-performing restructured loans. Non-performing restructured loans are 0 already counted as part of Non-Performing Loans (NPLs) 2006 2007 2008 2009 2010 2011 2012 1Q13

Write-offs NPL Portfolio Sales Sale of Foreclosed Properties 20.0 (Bt bn) (Bt bn) 1999-2000: KBank and Phatra Thanakit sold NPLs to 10 Phethai AMC and Ploy AMC totaling Bt64.5bn* and Bt41.2bn*, respectively 8 7.5 2001-2004: KBank sold NPLs totaling Bt14.6bn* to TAMC 5.9 10.0 6 5.6 2007: KBank and Phethai AMC sold NPLs totaling 4.5 4.6 4.9 4.4 4.6 Bt11.4bn to Standard Bank Asia Limited and Morgan 4 Stanley Emerging Markets Inc. at Bt7.6bn and Bt3.8bn, respectively 2 0.0 2008-1Q13: NPLs continue to decline without bulk NPL 0.8 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 sales 0 Write-off 10.7 11.6 8.7 4.3 5.5 4.3 3.9 5.0 1.4 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 Note: * Accrued interest receivable included

Investment in Securities Portfolio and Structure March 2013 (Consolidated) Instrument Type Holding Type

(Bt bn) (Bt bn) 450 382 450 382 400 0.5% 342 342 6% 400 0.04% 0.05% 350 255 4% 0.5% 0.4% 251 264 7% 350 251 264 0.4% 0.4% 11% 255 0.5% 300 4% 0.1% 0.1% 0.3% 0.1% 12% 300 0.1% 29% 4% 5% 0.1% 0.1% 0.01% 250 6% 4% 5% 3% 250 1% 0.7% 36% 6% 8% 13% 1% 200 200 23% 28% 33% 79% 150 68% 76% 150 78% 73% 100 85% 83% 100 65% 64% 58% 50 50 3% 0 0 6% 2% 2% 5% 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 Other Investment (Investments in Receivables, Investments in Subsidiaries and Other Investments) Trading Available-for-sales Held-to-maturity Equity Investment Foreign Bonds General Inv estment in Receivables Investments Subsidiaries Corporate Bonds Government & State Enterprise Bonds Note: Accounting for investments 1) Trading: Stated at fair value (FV). Unrealized gains or losses arising from changes in FV are recognized in the income statement 2) AFS: Stated at FV. Unrealized gains or losses arising from revaluation are reflected in the shareholder’s equity 3) HTM: Stated at amortized cost, after deduction of any allowance for impairment KBank continues to manage its investment portfolio to reflect the BOT's interest rate trend and enhance risk adjusted return

2009 2010 2011 2012 1Q12 1Q13 4Q12 1Q13 Investment Portfolio (Bt bn) 254.98 251.22 264.29 382.33 372.30 342.18 382.33 342.18

% Growth (YoY) 147.69 (1.48) 5.21 44.66 47.48 (8.09) 44.66 (8.09)

58 Funding Structure and Interest Rate Movement March 2013 (Consolidated) Funding Structure Deposit Structure (Bt bn) 1,654 1,645 (Bt bn) 1,600 1,368 8% 1,600 1,391 1,428 1,228 11% 5% 1,400 4% 5% 1,242 1,101 1,100 3% 5% 1,200 1,200 34% 33% 7% 975 4% 39% 1,000 7% 32% 800 39% 800 87% 91% 84% 600 90% 60% 61% 89% 400 62% 55% 400 55% 200 0 6% 6% 5% 6% 6% 0 2009 2010 2011 2012 1Q13 2009 2010 2011 2012 1Q13 Deposits ST and LT Borrowings Interbank and Money Market Current Savings Term KBank Interest Rate Movement (Retail customers) ST and LT Borrowings

Deposit and Bill of Exchange Rates (April 30, 2013) (Bt bn) 8 (%) Savings 0.75 120 95 6 Fixed 3M-12M 1.60-2.45 89 85 79 Fixed 24M-36M 2.55 80 34% 72 4 B/E 14D-1M 1.60-1.90 53% 45% 78% 79% 2 Lending rates (Oct 24, 2012) 40 59% MLR 7.00% 51% 0 47% 2007 2008 2009 2010 2011 2012 Apr13 22% 21% MOR 7.48% 0 7% 4% MLR Savings Fixed 3M MRR 8.10% 2009 2010 2011 2012 1Q13 ST Debentures B/E & Others LT Borrowing

Long-term Senior/Subordinated Debentures

Issued Name Type Embedded Amount Maturity Interest Rate Interest Credit Rating Date Option (Years) (Per annum) Payment period 20/09/2012 Senior Unsecured Debenture Unsecured - USD500mn* 5.5 3.0% Semi-annually A3 by Moody’s BBB+ by S&P and BBB+ by Fitch Ratings 15/02/2012 Subordinated debentures of Unsecured Callable Bt22,000mn 10 4.5% Quarterly AA- (tha) KASIKORNBANK PCL after by Fitch Ratings No.1/2555 5 years and axA by S&P 22/06/2010 Subordinated debentures of Unsecured Callable Bt7,500mn 10 4.5% Quarterly AA- (tha) KASIKORNBANK PCL after by Fitch Ratings No.1/2553 5 years 17/07/2009 Subordinated debentures of Unsecured Callable Bt600mn 10 Year 1-3: 4.85% Quarterly AA- (tha) KASIKORNBANK PCL after Year 4-7: 5.25% by Fitch Ratings No.1/2552 5 years Year 8-10: 5.75% 19/12/2008 Subordinated debentures of Unsecured Callable Bt17,000mn 10 Year 1-3: 5.25% Quarterly AA- (tha) KASIKORNBANK PCL after Year 4-7: 5.75% by Fitch Ratings No.1/2551 5 years Year 8-10: 6.50% 21/08/1996 Subordinated debentures of Unsecured USD183.31mn 20 8.25% Semi-annually BBB by S&P KASIKORNBANK PCL

Note: *The issued noted is drawn down from the Bank’s USD2.5bn Euro Medium Term Note Programme

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

The wholly-owned subsidiaries of KBank: Business Profile and Aspiration March 2013 KAsset KResearch KSecurities* KLeasing KF&E EST. 1992 EST. 1995 EST. Jul 2005 EST. Aug 2005 EST.1990

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

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

Asset Size Bt1.67bn Bt0.05bn Bt12.90bn Bt85.35bn Bt10.56bn

7.28% Market Share 22.75% (#1) N/A 5.71% (#4)* N/A (as of 2012)

Top of mind research house for media and for Maintain leading position in 16-18% YoY growth on 13-15% YoY growth on in overall market 2013 Targets #1 the clients of KBank and securities business outstanding loans outstanding loans its wholly owned subsidiaries Maintain leading position 3-year Top of mind Maintain position as a leading Maintain position #1 securities firm in equipment leasing Aspiration research house industry

* In February 2012, KBank and Macquarie signed an Exclusive Strategic Alliance (ESA) covering a range of investment banking and securities operations; KSecurities and Macquarie Securities (Thailand) are traded under a new ticket called KSMACQ

62 The wholly-owned subsidiaries of KBank: Y2012 Key Operating Performance March 2013

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

1Q13 Key Assets Under Management Most quoted research - Trading volume: Bt409.96bn Outstanding loans: Outstanding loans: Operating (AUM): Bt875bn house in the media - No. of customers grew 50% Bt84.33bn (1.76% YTD, Bt10.26bn (9.88% YTD, Performance (2.85% YTD, 8.47% YoY) YoY 26.20% YoY) 19.92% YoY)

The wholly-owned subsidiaries of KBank: Net Profit

(Bt bn) 2.5 2.25

2.0 1.84 1.43 The net profit continues to rise, along with synergy among 1.5 1.19 KBank and its wholly-owned subsidiaries 0.96 1.0

0.5

0.0 2009 2010 2011 2012 1Q13 Note: Since January 1, 2011, financial statements have been reclassified per the Bank of Thailand’s requirements; the 2010 financial statements were restated and adjusted for comparison purposes; in 4Q10, KBank early adopted TAS 19 (Employee Benefits) and TAS 12 (Income Taxes) to align with international practices and standards; 2009 financial statements were restated for comparison purposes * In February 2012, KBank and Macquarie signed an Exclusive Strategic Alliance (ESA) covering a range of investment banking and securities operations; KSecurities and Macquarie Securities (Thailand) are traded under a new ticket called KSMACQ

KAsset Highlights in 1Q13 March 2013 Industry Outlook: 1Q13 industry AUM at Bt3,846bn, rising 5.87% AUM (KAsset vs. Industry) YTD and 18.70% YoY; KAsset AUM at Bt875bn,

(Bt bn) (Bt bn) growing 2.85% YTD and 8.47% YoY 3,633 3,846 4,000 (+18.7% YoY) 1,000 2,883 3,015 2,576 2,228 2,167 851 875 1,756 742 KAsset Highlights: 2,000 635 (+8.5% YoY) 500 509 Continuously ranked #1 since 2009, with 22.75% 241 319 353 0 0 market share in 1Q13 2006 2007 2008 2009 2010 2011 2012 1Q13 Total Industry AUM KAsset AUM Mutual fund accounts for 70% of KAsset AUM

Market Share by AUM KAsset AUM Breakdown by Type (%) 40 2010 2011 2012 1Q13 Provident 30.6 30.931.3 Fund 30 29.3 24.6 18% 22.0 23.422.8 19.5 Private 20 19.3 18.317.8 Mutual Fund Fund 11.0 12.0 11.812.0 12% 9.0 8.9 8.3 8.6 7.8 7.6 70% 10 5.9 7.2

0 KAsset SCBAM KTAM MFC BBLAM Other

64 KResearch Highlights in 1Q13 March 2013

Industry Outlook: Only bank affiliated research house providing knowledge in economics, business, money, and banking

KResearch Highlights: Most quoted research house in the media. Top of mind research house for media, and for the clients of KBank and its wholly-owned subsidiaries

KSecurities Highlights in 1Q13 March 2013 Industry Outlook: 1Q13 industry trading volume* was Bt7,183bn, increasing 115.46% YoY Trading Volume (KSecurities vs. Industry) KSMACQ** trading volume was Bt410bn

(Bt bn) 2: 48% (Bt bn) ’06-’1 15,000 CAGR 13,772 1,000 KSecurities Highlights: 12,377 12,486 800 KSMACQ** ranked #4, with 5.71% market 10,000 8,544 8,640 7,967 7,962 817 600 430 411 7,183 share; maintained position as one of the 400 5,000 117 207 leading securities firms 91 410 41 200 0 0 Majority of revenue came from brokerage 2006 2007 2008 2009 2010 2011 2012 1Q13 Number of customers grew 50% YoY Total Industry Trading Volume KSMACQ Trading Volume**

Market Share by Trading Volume KSecurities Revenue by Business

(%) 15 12.8 13.0 Investment 2010 2011 2012 1Q13 11.911.9 Banking 10 0.7% 5.9 5.7 4.6 4.2 4.1 4.2 4.4 4.8 4.8 4.6 4.5 4.4 4.8 4.6 5 3.5 3.3 3.2 3.0 2.8 2.9 Brokerage 0 99.3% KSMACQ** SCBS KTZ BLS TNS MBKET

Note: * Industry trading volume excluding proprietary trade ** In February 2012, KBank and Macquarie signed an Exclusive Strategic Alliance (ESA) covering a range of investment banking and securities operations; KSecurities and Macquarie Securities (Thailand) are traded under a new ticket called KSMACQ

66 KLeasing Highlights in 1Q13 March 2013

KLeasing vs. Industry Industry Outlook:

(Thousand Units) 84.3 (Bt bn) 1,435 1Q13 industry car sales totaled 413,254 units, 1,500 100 (+26.20% YoY) growing 48% YoY 794 82.9 1,000 800 549 703 682 631 615 53.9 63.8 50 KLeasing Highlights: 500 22.1 43.6 413 11.3 1Q13 KLeasing loans totaled Bt84.33bn, growing 2.9 33.9 0 0 1.76% YTD and 26.20% YoY 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 # of Total Car Sales in Thailand KLeasing Outstanding Loans

Market Share by Total Outstanding Loans (%)* KLeasing Outstanding Loans Breakdown**

(%) Floor Used 50 2009 2010 2011 2012 Plan 37 35 34 35 Car 9% Fleet / FL 6% 25 18 18 17 18 15 15 16 15 Hire 14 12 12 14 11 11 11 11 22% 8 8 8 7 Purchase New Car 0 69% TBANK AYCAL TISCO SCB KK KLeasing 94%

Note: * Excluding captive and non-bank leasing ** Definition of loan type: Hire Purchase = car loans to retail customers; Fleet = a bulk of car loans to corporate and SME customers; Floor Plan = a bulk of car loans to car dealers

KF&E Highlights in 1Q13 March 2013

Industry Outlook: Growth in Equipment Finance (EQF) business forecasted using numerous factors including total import volume and KF&E Outstanding Loans total registration volume of equipment and machinery from the Department of Industrial Works and Capital Investment (Bt bn) 10.26 Index 10.0 9.34 8.01 KF&E Highlights: 8.0 KF&E outstanding loans were Bt10.26bn, rising 9.88% YTD 6.0 and 19.92% YoY; Equipment Finance (EQF) was Bt9.87bn 3.91 rising 23.92% YoY 4.0 KF&E currently ranked #2; will maintain the leading position 2.0 in equipment leasing industry

0.0 2010 2011 2012 1Q13

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

68 Life Insurance Industry in Thailand

Premium per % GDP by Country In 2011, Low penetration rate of 2.7% in Thailand,

(%) with a high opportunity for growth 20 15.4 Y2009 Y2010 Y2011 16 13.9 Source: Swiss Reinsurance Muang Thai Life Assurance (MTL) ranked #2 in life 12 7.0 4.6 insurance industry in Thailand, in 1Q13 8 7.0 4.3 3.1 4.4 3.3 2.5 2.7 3.4 3.2 2.6 1.1 0.8 4 3.0 1.8 1.0 0.7 0.60.7 ¾ 13.6% market share by total premium 0 ¾ 16.9% market share by new business 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 (%) Total Premium First Year Premium (%) (Bt bn) (Bt bn) 30 2011 2012 1Q13 500 3% 391.4 100 23.8 -’12: 1 25 GR’03 328.6 26.3 400 CA 296.3 259.2 80 20 300 13.6 202.5 222.0 15 12.1 11.1 173.3 60 10.2 151.1 166.8 7.9 200 133.1 109.6 10 12.49 12.48 7.6 10.7 5.2 40 8.9 3.1 3.1 100 5 7.4 2.4 5.8 2.6 3.8 2.9 6.7 0 20 0 AIA MTL BLA TLI SCBLife KTAL AZAY TLA OLIC ING Others 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q13 * Total Premium First Year Premium Source: The Thai Life Assurance Association * First Year Premium in 1Q13 = Bt25.47bn

Source: The Thai Life Assurance Association Note: Total Premium = New Business Premium + Renewal Premium; New Business Premium = First Year Premium + Single Premium

Bancassurance Highlights in 1Q13

Bancassurance Market Share by Total Premium (%) The Bancassurance Life industry continued (%) its positive trend in 1Q13 with total premium 30 22.7 20.6 20.3 2011 2012 1Q13 growth of 42% and new business premium 20 10.8 growth of 60% 6.8 10 3.4 2.8 2.8 2.7 2.7 22.3 15.0 25.3 11.3 6.4 4.0 3.5 2.6 3.7 2.4 0 MTL ranked #1 in Bancassurance market MTL BLA SCBLife KTAL TLA TLI AZAY AIA ING PLT ¾ #1 in Bancassurance total premium with 22.7% market share and 39% growth ¾ #1 in Bancassurance new business Bancassurance Market Share by premium with 23% market share and New Business Premium (%) 45% growth (%) 30 23.0 2011 2012 1Q13 18.9 20 16.5 12.2 8.7 10 4.6 3.9 2.8 2.7 2.4 23.5 9.8 24.2 10.4 10.7 3.5 6.2 0.0 2.7 3.2 0 MTL BLA SCBLife TLA KTAL AIA TLI DLA PLT ING

Source: Muang Thai Life Assurance (MTL)

70 KBank’s Strategic Acquisition in Muangthai Group Holding (MTGH)

Before: 10% Stake in MTGH Currently: 51% Stake in MTGH after Acquisition

6.0% 10.0% Group A Group A KBank Swiss Re Fortis KBank Ageas*** Persons 25.0% PersonsPersons** 65.05% 10.0% 4.95% 20.0% 51.0 % 41.2% 7.8% 25.0% MTFHMTFH* MTGH*

25.2% 75.0% 53.7% 2.0% 98.0% 100.0% MTI* MTL* MTR* PL*PL MTB*MTB MTGSMTGS* 19.9% 75.0% 99.0% MTI* MTL* MTB*

KBank’s Economic Interest KBank’s Economic Interest MTFH MTI MTL MTB MTGH MTI MTL MTB 10.0% 8.5% 7.5% 9.8% 51.0% 10.1% 38.3% 50.5%

Note: * MTFH = Muangthai Fortis Holding Company Limited, MTL = Muang Thai Life Assurance Company Limited, MTI = Muang Thai Insurance PCL, MTR = Muangthai Real Estate PCL, MTB = Muangthai Broker Company Limited, MTGS = Muangthai Group Service Company Limited, PL = Phatra Leasing PCL, Group A Persons = Group of retail shareholders; Muangthai Fortis Holding (MTFH) changed its name to Muangthai Group Holding (MTGH) in July 2009 ** The details of Group A Persons can be found in Appendix A of Opinion Report of the Independent Financial Advisor Regarding to Connected Transaction *** Fortis Insurance International NV changed its name to Ageas in 2010

Source: Information from the General Meeting of Shareholders No. 97, April 3, 2009

Muang Thai Life Assurance (MTL) Information Summary Established on 6 April, 1951. The first life insurance company to be granted Royal Patronage (since 1959) Joined hands with Fortis Insurance International NV (changed name to Ageas in 2010) in 2004 and joined hands with KBank in 2005 Credit Rating: BBB+/Stable and axA+ (ASEAN) from S&P’s, AA+(tha)/Stable / BBB+/Stable from Fitch Ratings Life Insurance Company with Outstanding Management Award from OIC five years in role

Statements of Comprehensive Income (Bt bn) Strategy in 2013 2011 2012 1Q13 Net premiums earned 37.1 47.6 14.1 Continue to enhance process efficiency and service quality as Net investment income 5.2 6.4 1.9 well as developing new products and services to effectively Total revenues 42.3 54.0 16.0 satisfy the needs of all customer groups Life policy reserve increase from the previous period 21.0 28.0 8.5 Benefits payments to life policyholders 5.9 6.9 2.0 Insurance claims and loss adjustment expenses 1.9 1.9 0.5 2013 Key Financial Targets Commissions and brokerages 6.3 8.4 2.5 Bt bn 2011 2012 2013F Other underwriting expenses 0.3 0.4 0.1 Total Premium after refund 37.9 48.9 Operating expenses & Other 2.5 2.8 0.7 Total Expenses 37.9 48.5 14.3 % Growth 28% 29% ≥Industry growth Profit before income tax expense 4.4 5.6 1.7 Income tax expense 1.5 1.4 0.3 Net profit (loss) 2.9 4.1 1.4 2011 2012 1Q13 ROE (%) 21.1% 23.7% Statements of Financial Position (Bt bn) 22.8% 2011 2012 1Q13 ROA (%) 2.8% 3.1% 3.4% Total Assets 116.4 151.9 165.1 Risk-Based Capital (RBC) 319.8% 436.6% 439.6% Total Liabilities 101.5 130.5 141.4 Total Equities 14.9 21.4 23.7

Source: Muang Thai Life Assurance, data based on book value except for RBC

72 MTL Investment Portfolio and Insurance Premium

MTL Investment Portfolio: MTL Total Premium: Fixed Income accounted for around 80% Growth continues to outpace the industry

(bn)

60 48.9 Total Premium MTL Industry 50 37.9 Growth 40 29.6 27.2 30 21.5 (%YOY) 14.9 Y2010 38% 14% 20 16.5 21.7 13.1 16.4 8.4 Y2011 28% 11% 10 6.5 Y2012 29% 19% 0 1Q13 31% 20% 2010 2011 2012 1Q13 First Year and Single Premium Renewal Premium Total Premium

Source: The Thai Life Assurance Association Total Investment (1Q13): Bt155.7bn

Total Premium by Products: Total Premium by Channels: Bancassurance accounted for over 70% in 1Q13 Ordinary product accounted for around 90% with an increasing proportion

100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 2010 2011 2012 1Q13 2010 2011 2012 1Q13 Ordinary Industrial Personal Accident Group Agents Bancassurance Direct Marketing Other

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; ¾ 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) ¾ 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) ¾ 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) ¾ 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

74 Sample of K-Bancassurance and MTL Products K-Bancassurance Muang Thai Life Assurance

Endowment Life Insurance Endowment Life Insurance Pro-Savings 615 Ormsap 20/14 Life insurance with a premium payment of only 6 years, but the coverage continues for 15 years Pay premium for only 14 years, but the coverage continues for 20 years

Life Coverage at 100% of the sum insured amount End of Policy Year

Premium Payment at the Beginning of Policy year Maturity Benefit 100%

Term Life Insurance Term Life Insurance

MRTA-Home (Mortgage Reducing Term Assurance) Healthy Value 1 year coverage period, covered medical expenses up to Bt2mn

Life Coverage at 100% of the sum insured amount End of Policy Year

Premium Payment at the Beginning of Policy year

Maturity Benefit 100%

Sample of K-Bancassurance and MTL Products K-Bancassurance Muang Thai Life Assurance

Whole Life Insurance Whole Life Insurance Pro Life 90/5 Kumkrong Talodcheep Whole life coverage to the age of 90 with annual cash bonus payment from the end of policy Saving plan with whole life coverage: pay premium for only 20 years and get year 1 and requires only 5 years premium payment coverage to the age of 99

Rider Rider

PA Plus Health Care Plus Pure Cancer Accident coverage Hospital and surgery benefit rider Additional cancer insurance which provides cash benefits up to Bt1mn

76 KBank: Other Information

Shareholder Structure April 17, 2013 (Closing Registration Date) Shareholder Structure Top 10 Shareholders %

1. THAI NVDR CO., LTD* 28.652 2. STATE STREET BANK EUROPE LIMITED 7.931 3. CHASE NOMINEES LIMITED 42 5.124 Thai Shareholders Foreign 4. STATE STREET BANK AND TRUST COMPANY 3.308 51% Shareholders 49% 5. HSBC (SINGAPORE) NOMINEES PTE LTD 2.777 (NVDR = 28.65%*) 6. NORTRUST NOMINEES LIMITED-NT0 SEC 2.215 LENDING THAILAND 7. THAILAND SECURITIES DEPOSITORY COMPANY 2.171 LIMITED FOR DEPOSITORS (THAI SECURITIES – HOLDER ACCOUNT)** 8. CHASE NOMINEES LIMITED 1 1.312 9. THE BANK OF NEW YORK MELLON-CGT 1.304 Note: TAXABLE Thai Shareholding Limit 51% 10. STATE STREET BANK AND TRUST COMPANY 1.221 Foreign Shareholding Limit 49% FOR AUSTRALIA Other Shareholders 43.987 Total 100.00 Note: * NVDR stands for Non-Voting Depository Receipt ** 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)

78 Credit Ratings As of May 31, 2013

KBank Thailand

Foreign Currency Foreign Currency Outlook Government Country Ceiling Country Ceiling Outlook Long-term* Senior Unsecured for Deposit for Debt Notes

Moody’s Baa1 A3 Stable Baa1 Baa1 A2 Stable

S&P’s BBB+ BBB+ Stable BBB+ - - Stable

Fitch BBB+ BBB+ Stable BBB+ - A- Stable

Note: * Moody's: Foreign Currency Long-term Deposit Rating; S&P's: Long-term Counterparty Credit Rating; Fitch Ratings: Foreign Currency Long-term Issuer Default Rating

Public Recognition Highlight: 2012 - 1Q13 1Q13 2012

- Best Retail Bank in Thailand - Best Cash Management House in - The Bankers Choice Awards in Thailand Thailand - Asia’s Best CEO (Investor Relations) - The Leading Counterparty Bank in Thailand - Asia’s Best CFO (Investor Relations) - Best Cash Management Bank in Thailand - Best Investor Relations Company (Thailand) - Product Excellence in Debit Cards 2012 - Strategy Excellence in Business Innovation (Special Commendation) - Best SME Bank in Thailand 2012 - Best SME Banker in Thailand 2012 - The Asset’s Platinum Awards in 2012 - The Asset’s Platinum Awards - Triple A Transaction Banking Awards 2013: Awards for Listed Companies 2012: Treasury, Trade and Risk Management - Best Chief Executive Officer - House of the Year, Thailand - Best Investor Relations

- Best Bond House-Thailand 2012 SET Awards 2012: - Platinum Award, Banking and Finance sector. - Best Retail Bank in Thailand - SET Award of Honor for Excellence - Best Cash Management Bank in Thailand in Corporate Governance Report - The Best Managed Banks Achievement Awards 2013 2008-2012 - Best Bank - SET Award of Honor for Excellence - Best Cash Management Bank in Investor Relations 2010-2012 - Best FX Bank for Corporates and FIs

- ESCO Excellent Supporting Bank Awards 2013 - Best Investor Relations Professional -Best Retail Bank of the Year 2012

- Best Investor Relations by a Thai Company for Excellence - Asia’s Best CEO (Investor Relations) in Investor Relations - Best Investor Relations Company (Thailand) - Asian Corporate Director Recognition Award 2012 - Corporate Governance Asia Recognition Award 2012

80 Banking System and Regulations Update

Thai Commercial Banks and Specialized Financial Institutions (SFIs) March 2013 Market Share (% of Total Loans) Market Share (% of Total Deposits) As of Mar-2013 6 SFIs 13,723 13,573 13,812 13,439 11,793 10,996 9,935 10,074 8,824 9,172 8,622 8,872

14 Commercial Banks

As of Mar-2013

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)

82 Regulations Update

Capital (Basel III) January 2013 onwards: Basel III implementation on bank only and consolidated basis (early adopt). Requirements are in line with international guidelines ¾ Expected impacts on Thai banks: Manageable impacts expected based on quantitative impact study by the BOT ¾ Expected impacts on KBank: Manageable impacts to KBank expected

Financial Sector Master Plan II (FSMP II)

Year 2010-2014: The BOT’s FSMP II consists of three key policies: reducing system-wide operating costs; promoting competition and access to financial services; and strengthening financial infrastructure, including market liberalization, increased access by foreign financial institutions via granting licenses in some business areas, and permission for an increased number of branches and ATMs Progress In 2013: The BOT will establish a licensing framework for foreign commercial banks, aiming to enhance competitiveness within the banking industry under FSMP II ¾ Expected impacts on Thai banks: Move toward liberalization, along with higher competition ¾ Expected 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 International Accounting Standards (IASs and IFRSs) Year 2013 onwards: The time frame is specified by the Federation of Accounting Professions; IFRS 8 (Operating Segment) and IAS21 (Foreign Exchange) has been implemented since January 2013; full IFRS conversion is expected in 2016 ¾ Expected impacts on Thai banks: More logical and transparent presentation and disclosure, with different impacts on each bank ¾ Expected impacts on KBank: Manageable impacts expected, as the Bank early adopted some IASs and IFRSs and continues to prepare for full implementation

Note: TAS = Thai Accounting Standards; BCBS = Basel Committee on Banking Supervision Source: The Bank of Thailand, KResearch 83

Basel III: The BOT Implementation Timeframe The BOT implementation timeframe is mostly in line with the BCBS timeframe ¾ Effective implementation: January 1, 2013 (Bank) and January 1, 2014 (Consolidated) ¾ Banks able to early adopt Basel III on consolidated basis since January 1, 2013 ¾ Full Implementation: January 1, 2019 Transitional Arrangement for Capital Requirement All dates are as of 1 January 2013 2014 2015 2016 2017 2018 2019 Conservation Buffer* - - - 0.625% 1.25% 1.875% 2.5%

CET1: Minimum Common Equity Tier 1 Ratio (after conservation buffer) 4.5% 4.5% 4.5% 5.125% 5.75% 6.375% 7.0% (4.5%+0.625%) (4.5%+1.25%) (4.5%+1.875%) (4.5%+2.5%)

Tier 1: Minimum Tier 1 Ratio (after conservation buffer) 6.0% 6.0% 6.0% 6.625% 7.25% 7.875% 8.5% (6.0%+0.625%) (6.0%+1.25%) (6.0%+1.875%) (6.0%+2.5%)

CAR: Minimum Total Capital Ratio (after conservation buffer) 8.5% 8.5% 8.5% 9.125% 9.75% 10.375% 11.0% (8.5%+0.625%) (8.5%+1.25%) (8.5%+1.875%) (8.5%+2.5%) Countercyclical Buffer (Subject to the BOT consideration)** - - - 0.0-2.5% 0.0-2.5% 0.0-2.5% 0.0-2.5%

Leverage Ratio Parallel run period Effective

Liquidity Coverage Ratio (LCR)*** Effective (Phase-in)

Net Stable Funding Ratio (NSFR)*** Effective

* Conservation Buffer is to ensure adequate capital to absorb losses during periods of financial and economic stress. Banks with a CET1 ratio less than the required conservation buffer (i.e. 2.5% CET1) will face various degrees of constraint on distribution of dividends and bonuses ** In periods of excess aggregate credit growth, the BOT may require banks to set a Countercyclical Buffer up to 2.5% to achieve the broader macroprudential goal of protecting the banking sector *** Requirements for liquidity ratios have not been finalized. Banks are required to submit data to the BOT for further calibration Source: Bank of Thailand (BOT), KBank

84 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) 1 e.g. surplus on AFS bond and equity (100%), 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 1 capital Deduction of Tier 1 Deduction of Tier 1 • Goodwill, Treasury stock, Deferred tax asset • Goodwill, Treasury stock*, Deferred tax asset • Intangible assets (new item: gradually deduct CET1) 2 • 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 (reserve on ‘Pass’ loans and • General Provision (reserve on ‘Pass’ loans and the excess allowance of required reserves) the excess allowance of required reserves) Tier 2 Tier 2 capital capital • Surplus on AFS equity (45%) * Currently, KBank has no Hybrid Tier 1, Preferred Stock, or Treasury Stock 1 ** Long-term subordinated debentures must have loss absorbency feature, if issued • Surplus on land & premises (70% and 50%) since 1 January 2013

Financial Sector Master Plan (FSMP) Implementation Stages FSMP I FSMP II (Y2010-2014) FSMP III (Y2004-2009) Looking forward to liberalization (Y2014 onwards) Increase efficiency of the Reducing system-wide operating costs Further financial institutions development based Streamlining regulations system on FSMP II results Tackling remaining NPLs and NPAs - ‘One Presence’ policy Another feasibility (Allow banks to partner with private firms to work on raising attractiveness of NPAs, - Expand scope of business: study in light of promote efficiency in the trading of NPLs and NPAs by establishing an NPA Information ‘Universal Banking’ empirical results Center, and encourage write-offs of fully provisioned ‘doubtful of loss’ loans) - New licenses for retail banks and foreign bank Promoting competition and access to financial services subsidiaries Promote competition Promote financial inclusion - Encourage voluntary mergers to lower operating costs - Strengthen financial - Enhance the role of existing service providers institutions (FIs) by (Liberalization of branch network, widen business scope, upgrade qualified retail promoting voluntary banks to commercial banks, and expand branch network of foreign banks) mergers - Introduce new entry to fill gaps and create value-added Protect customers - Reduce government ownership in the commercial banking sector Promote financial access - Facilitate bank expansion of business, as well as support Specialized FIs in focusing on providing services to the populations without access to banks - Introduce new service providers with microfinance expertise into the system Strengthening financial infrastructure (including market liberalization, increased access for foreign financial institutions via grants of licenses for some business areas, and permission for an increased number of branches and ATMs) Promote development of financial products that help support risk management Enhance information system for risk management Push for draft/review of necessary financial laws to support risk management and an expedited resolutions to NPLs Promote information technology utilization Develop human resources in the financial sector

Note: There are four types of Commercial banks in Thailand; Full service banks; Foreign bank branches; Retail banks; and Subsidiary Source: BOT and KResearch 86 TAS and IFRS Implementation 4Q2010 2013 2014 2016 (Tentative)

31 Dec 2010 : TAS Implementation Phase 2 : IFRS Conversion Full IFRS Conversion TAS/TFRS Implementation TAS 19: Employee Benefits (KBank early adopted in 4Q10; the formal TAS 21: Effects of TFRI 13: Customer IFRS 9 (IAS 39), IFRS 7 and IAS 32: effective date is January 1, 2011) Changes in Foreign Loyalty Program Financial Instruments ¾ Use actuarial techniques to determine Exchange Rates ¾Defer portion of ¾ Thai banks have implemented a new provisioning rule under IAS 39, since retirement reserve for eligible staff ¾Translate ‘Functional income for reward Currency’ to credit granted December 2006 TAS 12: Income Taxes (KBank early ‘Presentation Currency’ ¾ Thai banks have complied with IAS 39 adopted) when reporting embedded derivatives, since 2008 (KBank early adopted in 4Q10; the formal TFRS 8: Operating effective date is January 1, 2013) Segments IFRS 4: Insurance Contracts ¾ Use deferred income tax concept to record ¾Present operating ¾ Re-measuring insurance liability to tax asset/ liability results for each key reflect current market situation segment ¾ Unbundling of deposit components Other TASs IFRS13: Fair value measurement 1 Jan 2011: New financial statement (Revised timeline from 2013 by presentation Federation of Accounting Professions) ¾ Clear required factors in fair valuation BOT’s New Financial Statement and disclosure about valuation Presentation/Convention techniques ¾ New and reclassified presentation lines in financial statement in order to align with the revised TAS

Note: TAS = Thai Accounting Standard 87

Updates on the Deposit Protection Agency (DPA) DPA Objectives and Missions Enhanced understanding of the deposit protection scheme Close cooperation with related authorities to maintain stability of the financial institution system Establishment of an appropriate system for premium collection and sound management of the Deposit Protection Fund Development of an effective information system to ensure fairness of the deposit protection scheme, with accurate and rapid reimbursement Management according to Good Governance Principles and in compliance with international standards established by the International Association of Deposit Insurers Amount of Insured Deposits Insured deposits include deposits and accrued interest denominated in Thai Baht accounts, excluding non-resident Thai Baht accounts Blanket guarantee will be gradually phased-out to a limited coverage of Bt1mn per Insured Deposit Under new Royal Decree depositor per institution Until 2011, Thai banks paid 0.40% per year of the daily average deposit amount (paid in 11 August 2012 – 10 August 2015 Up to Bt50mn June and December), excluding deposits in foreign currencies and deposits from financial institutions not insured by the DPA 11 August 2015 – 10 August 2016 Up to Bt25mn Since January 27, 2012, the contribution rate increases from 0.40% to 0.47%, of which 0.46% is paid to the BOT to manage FIDF debts* and 0.01% is paid to the DPA Royal Decree on an extension of deposit protection coverage was announced in the 10 August 2016, onwards Up to Bt1mn Government Gazette on September 24, 2012 Deposit Accounts in Thailand (as of March 2013)

Deposits (Corporate and Retail Deposits) # of Accounts % Amount (Bt mn) %

Less than Bt1mn 80,430,979 98.51% 2,561,209 24.89%

More than Bt1mn, but less than Bt50mn 1,201,078 1.47% 4,552,253 44.24%

More than Bt50mn 15,545 0.02% 3,176,253 30.87% Source: DPA, Bank of Thailand (BOT), KBank, KResearch Total 81,647,602 100.00% 10,289,715 100.00% * According to the BOT announcement in Government Gazette, per the authority of the emergency decree, dated May 11, 2012, financial institutions are required to pay 0.46% of the average deposit amount, B/Es, debt instrument (excluding the amount counted as capital), borrowings, securities transactions under repurchase agreements, beginning January 27, 2012

88 Government Policy

Sources and Uses of Public Fund FY2013 Annual Budget

General Administration (Bt822.7bn) Defense Budget Planning Budget Execution Debt services Economic Services Tax Revenue + Budget (Bt471.4bn) Non-Tax Revenue Subsidy to SFIs (e.g. loss from Disbursement (Bt2.1trn) Annual Budget rice pledging scheme) (94% target Subsidy to SOEs (Bt2.4trn) disbursement rate + (e.g. Infrastructure project, free bus and train service policy) + carry-over) Infrastructure/Agricultural Borrowing under the Annual Development Budget Act Social and Community (Bt300bn) Services (Bt1,105.9bn) One Tablet per Child Universal Healthcare

Extra-Budget Borrowing Quasi-Fiscal Instrument 1. Water Resource Management project (Bt350bn) Quasi-fiscal Extra-Budget Details in App. Page 93 SFIs taking deposit, activities (e.g. Rice Borrowing under as well as borrowing Pledging Scheme, Special Act/Decree 2. Infrastructure Investment Soft Loan Program) Project (Bt2trn) Details in App. Page 94

90 Highlights of Government Stimulus Plans Projects/ Campaigns 2012 2013 FY2012 Budget Act (Bt2.38trn) FY2012: Disbursed = Bt2.1trn or 90.3% FY2013 Budget Act (Bt2.4trn) FY2013: Disbursement as of April 2013 = Bt1.4trn or 57.6% Emergency Decree for Water Resource Management (Bt350bn) * Disbursement As of April 2013 = 2.9% Infrastructure Development (around Bt2trn) ** Corporate Income Tax Reduction (from 30% to 23% in 2012 and to 20% in 2013) ‘First-Home’ buyer (Confidence and The National Catastrophe Insurance Fund Investment Stimuli Investment

competitiveness enhancement) The BOT Soft Loans

Bt300 daily minimum wage Bt15,000 monthly income for civil servants Rice pledging policy Performing-debt suspension

burden) ‘First-Car’ buyer Energy / cost of livings (Increase income/ boost Consumption Stimuli consumption/ spending ease VAT maintained at 7.0%

Note: * Bt50bn is allocated for short-term / emergency projects, and Bt300bn is allocated for long-term projects, which are in process of Term of Reference (TOR) ** Preliminary data; pending more information from the authorities Source: Compiled by KResearch, information as of May 2013 91

Funding Needed from the Government for Investment Stimuli

1,000

800 In addition to commercial bank loan expansion, funding needed 600 from the government to finance 342.5 400 1.9 budget deficit, as well as to invest Billion Baht 200 in the water resource management 344 300 and infrastructure development 0 projects may affect liquidity in the FY2012 FY2013 F system

Budget Deficit Extra-budget borrowing

Economic Key Points Implementation Process Possible Impacts/ Policies Expected Budget

2013 Budget Act FY2013 expenditures set at FY2013 Government spending help lessen Bt2.4trn with a budget deficit of Effective date: announced in the Royal flood impacts and risks from global Bt300bn, compared to Bt2.38trn in Gazette on Sep 30, 2012 economic uncertainty expenditures with a Bt400bn Fiscal discipline to remain manageable deficit in FY2012 in the near-term; however, continued debt creation, both from budget and other borrowings, may impact long- term fiscal sustainability

Sources: MOF, KResearch (As of May 2013) Note: FY2012 is actual data, and FY2013 is estimated data

92 Emergency Decree for Water Resource Management Summary Information Budget = Bt350bn* Bt300bn long-term projects*

Others (6.7%) Budget: Bt350bn* in 2012 - June 2013 Bt50bn for short-term Land use zoning and Investment Period: 2012 - 2016 projects land utilization (16.7%) Flood ways or flood Objective: division channel Reservoir construction (40%) To prevent severe flood in Central region Bt300bn for (16.7%) To enhance investor confidence long-term projects Adapting irrigated agricultural areas into Sources of Funds: Borrowing retention areas (20%)

Key Activity Plan 2Q13 2H13 2014 - 2016

Announce winners and start Award contracts Full-scale construction borrowing to finance project Contractors start their projects Complete borrowing as stated - Design and Built projects by the Emergency Decree - Compliance with related regulatory requirements, e.g., EIA and public hearing process

Note: * Bt50bn is allocated for short-term /emergency projects, and Bt300bn is allocated for long-term projects, which are in process of Term of Reference (TOR) Sources: Strategic Committee for Water Resource Management, KResearch (Update as of May 2013)

Infrastructure Development Summary Information Bt2trn infrastructure Development

Budget: Around Bt2trn Support systems and Dual-track railways, contingency funds (0.5%) Investment Period: 2013 - 2020 (7 Years) ports construction, and distribution Objective: centers (17.7%) Enhance long-term competitiveness High-speed trains and Electric trains in and inter-city highways Create 1.5-2.0mn jobs (52.1%) Stimulate domestic economy around Bangkok plus road networks linking Enhance quality of life rural areas with industrial and tourist Sources of Funds: areas (29.7%) Main funding is expected to be domestic borrowing under a special Act Timeline

Note: * Preliminary data; pending more information from the authorities Sources: Newspaper complied by KResearch, as of May 2013 94 Summary on Government Stimulus Plans: Economic Policies Key Points

Corporate income tax cut Reduction in corporate income tax from 30% to 23% in 2012 and 20% in 2013 and 2014

Enhancing Competitiveness for SMEs Financial assistance through cooperation between SME Bank, Thai Credit Guarantee Corporation (TCG), and the Social Security Fund, as well as tax breaks

Bt300 daily minimum wage Daily minimum wage rising to Bt300 until December 2015

Bt15,000 monthly salary or equivalent income for Salaries (wages plus benefits) raised to at least Bt15,000 per month civil servants with undergraduate degrees

Rice pledging policy Using the Bank for Agriculture and Agricultural Co-operatives (BAAC) as an arm of the government to support the rice pledging program, with prices set at Bt15,000 a tonne for white rice and Bt20,000 a tonne for fragrant or ‘Hom Mali’ rice

3-Year Performing Debt Moratorium 3-year debt moratorium for small-scale farmers and low income earners with outstanding debt not to exceed Bt500,000 per person with the interest rate reduced by 3% per year

Monthly welfare allowance for citizens over age 60 Monthly welfare allowance of Bt600-1,000 paid to citizens between ages 60-90

Fund for Entrepreneurship Provide startup capital/soft loans for entrepreneurs who want to open businesses Expired Measures

‘First Home’ program 10% maximum personal income tax deduction (maximum Bt100,000 deduction per year) for (Expired measure) first-time buyers of new houses or condominiums valued below Bt5mn Deduction will be spread out over five years

‘First Car’ tax incentives Rebate of the excise tax (capped at Bt100,000) on small passenger cars (engine size less than (Expired measure) or equal to 1,500cc) and pickup trucks worth up to Bt1mn

GHB home loans with 0% interest for 3 years Government Housing Bank (GHB) will provide up to Bt1mn in housing loans for first-time home Source:(Expired KResearch, measure) information as of October 19, 2012 buyers with 0% interest for the first three years

Source: KResearch, information as of May 15, 2013 95

Summary of Four Financial Emergency Decrees Decree Name Key Points Implementation Possible Impacts/ Expected Budget Process

Emergency decree Establishing water Approved (by Cabinet): Bt310bn in government borrowing will have taken place by June 30, 2013 authorizing government management system; flood Jan 10, 2012 Funding wholly comes from government borrowing borrowing for strategic prevention program to regain Effective date: Jan 27, Boosting infrastructure investment investment plans covering investor confidence 2012 water resource management

Emergency decree Providing soft-loans with Approved (by Cabinet): Bt300bn in soft-loans providing assistance fixed interest rate of no more Jan 10, 2012 Bank of Thailand contributes up to 70% of total amount loans to flood-hit SMEs than 3% for flood-affected Effective date: Jan 27, State-owned and commercial banks contribute the remaining amount and individuals parties 2012 As of September 2012, this measure has provided support to more than 520,000 affected customers nationwide

Emergency decree Establishing a flood Approved (by Cabinet): Bt50bn in funds establishing flood-related insurance scheme, with Jan 10, 2012 Funding comes mainly from government borrowing insurance fund favorable insurance Effective date: Jan 27, As of May 7, 2013, a total of 808,119 catastrophe policies have been sold, with premiums in light of partial 2012 reinsurance premiums under the National Catastrophe Insurance Fund government support reaching Bt75,926mn

Emergency decree Set a clear responsibility to Approved (by Cabinet): Until 2011, Thai banks paid 0.40% per year of the daily average deposit improving management of manage debts, particularly Jan 10, 2012 amount to the Deposit Protection Agency; since January 27, 2012, the the Financial Institutions yearly interest rate burdens, Effective date: Jan 27, contribution rate has been increased from 0.40% to 0.47%, of which 0.46% is paid to the BOT to manage FIDF debts and 0.01% is paid to the DPA Development Fund (FIDF) by introducing additional 2012 According to news reports, SFIs will also be required to pay 0.47% of their debt sources of funds from deposits into a country development fund financial institution contributions

Source: KResearch, information as of May 2013

96 Government Assistance Measures for SMEs Affected by Wage Hike Daily minimum wage rose to Bt300 and will remain at Bt300 until December 2015

Measures Details

Tax measures Reduce income tax ¾ If annual income ≤ Bt300,000, income tax rate = 0% ¾ If annual income between Bt300,000 and Bt1mn, income tax rate = 15% ¾ If annual income over Bt1mn, income tax rate = 20% Cut withholding tax to 2% (from 3%) Allow 100% depreciation in the first year for machinery Exempt income tax from the sale of old machinery Offer tax deductions for 1.5 times incremental wages

Financial measures Offer soft loans worth Bt20bn from SME Bank and Bt10bn from Social Security Fund Offer credit line guarantee worth Bt240bn by Thai Credit Guarantee Corporation Establish Venture Capital Fund (Bt1bn) and Machine Fund (Bt3.4bn) to promote mechanization in SMEs by providing venture capital and interest rate subsidy for SMEs intending to purchase new machinery and equipment (still in Cabinet approval process)

Productivity-boosting measures Offer soft loans (0.1% p.a.) for staff training costs, by the Skill Development Fund

Other measures Reduce employer contributions to Social Security Fund to 4% (from 5%) Source: KResearch, information as of February 2013 Increase budget for state officer trainings and seminars at provincial hotels Reduce business tax by 50% to Bt40 per room (from Bt80) for small scale hotels under the supervision of the Local Administration Organization

Ongoing Government Measures to Assist Cost of Living Measures Details

Household Assistance Train and Bus Fares: A subsidized fare for buses and trains; some buses and trains provided for free Electricity: A full subsidy on electricity bills for households using less than 50 units of electricity per month

Energy Prices Diesel Fuel: The government intends to control diesel fuel prices to not exceed Bt30/litre by adjusting the amount contributed to the Oil Fund and excise tax on 37 Elimination of some Oil Fund levies Diesel Price diesel fuel 35 (effective Aug. 29, 2011) NGV and LPG Price: The government has subsidized NGV and LPG costs, 33 allowing retail selling prices to be lower than global market prices. However, the 29.99 government plans to restructure a fuel price system to better reflect global market 31 29.99 price movements Baht/Litre 29 NGV price fixed at Bt10.50/kg 27 Pegged Price Uncontrolled Price LPG prices are as follows: 25 ¾ Household sector planned price increase by Bt0.50 per month starting June 1, 2013 until the price equals to the transport sector price Jun-11 Jun-12 Dec-10 Dec-11 Dec-12 (as of May 7, 2013, price at Bt18.13/kg) ¾ Transport sector adjusted in accordance with Oil Fund levies and the direction of global prices (as of May 7, 2013, price at Bt21.38/kg) ¾ Industrial sector adjusted in alignment with relevant production costs (as of May 7, 2013, price at Bt28.07/kg) FT Rate: Fuel Adjustment Tariff (FT) Rate for electricity is set to increase by less than the actual cost Value-added-tax (VAT) Rate On August 7, 2012, the Cabinet approved the following VAT Rates: Maintain the 7% value-added-tax (VAT) rate until September 30, 2014 After Sep 2014, VAT rate may be increased to 10% unless the government Source: KResearch extends the VAT reduction period.

98 Public Debt to GDP and Fiscal Budget

Government budget disbursement rate for The public debt to GDP ratio is 44.16% as of March 7M2013 (October 2012-April 2013) was 57.6%, 2013, still under the 60% limit set by the fiscal slightly better than the same period in FY2012 sustainability framework

Bt bn % to GDP 100 5,100 48 90 FY2013 FY 2012 FY 2011 Public Debt 90.3 80 4,800 % to GDP 46 81.1 45.1 70 74.7 44.16 57.6 60 67.5 50.5 61.2 4,500 44 50 42.1 55.5 43.6 40 36.7 49.2 42.3 42.3 29.2 4,200 42 30 23.4 34.4 20 12.1 27.8

Cumulative Budget Disbursement Rate (%)DisbursementCumulative Rate Budget 21.2 3,900 40 % 10 13.9 7.5 0 Jul Oct Apr Jan Jun 3,600 38 Feb Mar Nov Dec Aug Sep May Jun-11 Jun-12 Mar-11 Sep-11 Dec-11 Mar-13 Mar-12 Sep-12 Sep-10 Dec-12 Dec-10 Note: The 2012 Budget Act was announced in the Royal Gazette on February 8, 2012 Source: Ministry of Finance

Thai Economic Figures

100 Currency and Interest Rate Outlook USD/THB: End Period Interest Rate Trend 3.25 4.00 2.75 2.50 34Bt 33.32 2.00 32 30.15 31.54 30.60 31.13 2.00 1.25 30.00 0-0.25 0-0.25 0-0.25 0-0.25 30 % p.a. 0-0.25 28 0.00 4Q09 4Q10 4Q11 4Q12 26-Jun-13 4Q13F Dec-09 Dec-10 Dec-11 Dec-12 Dec-13F USD/THB Fed Funds rate BOT's 1-Day Repurchase rate The Fed signals its plan to reduce asset purchases by On May 29th, the MPC decided to lower its policy rate end-2013 if the U.S. economy improves in line with its by 25bps to 2.50% following a deceleration in June forecasts. The strength of the U.S. economy Thailand’s economic activities, as reflected in its remains in doubt, while the same level of monetary 1Q13 GDP, and lower risks to inflation. Domestic support should be maintained through 2013. The demand growth slowed down significantly after global economy shows further signs of weakness, several fiscal stimulus measures expired, while while the U.S. government’s finances and housing exports performed poorly due to weak external market recovery remain dependent on low interest demand and the Baht’s appreciation in 4M13 rates which are products of the Q.E. measure We forecast that the MPC will maintain its 2.50% The Thai Baht stays under depreciation pressure due policy rate until year-end 2013 due to an expectation to portfolio outflows and larger trade deficits. It is of positive GDP growth, albeit at a lower rate likely to be futile to “fight the Fed” or go against the compared to expectations at the start of the year. market’s risk aversion; the Baht looks oversold and is Inflation is likely to remain low and stable while risk likely to rebound to 30.00 by year-end as the market to growth rose due to the weaker outlook on Asia’s reassesses the timing of the Q.E. exit economic growth. Recent volatility in the financial Note: F is estimated by KBank Capital Markets Research (as of June 21, 2013) market may also pose risks to the global economy

101

Impact of Baht Appreciation to Key Sectors

Impacts/ Support Reasons Sectors

Highly Export-oriented, high use of Garments, Musical and Sports Key Issues: Impacted local content, low Instruments, Canned and competitiveness, price Processed Fruit & Seafood, Export industries most affected are those inelastic, and/or weaker Frozen Shrimp, and Processed with a high proportion of local content and overseas demand Poultry low profit margin, including Footwear & Decreased competitiveness Rice and Labor-Intensive Leather Products, Furniture, Textiles & Products, e.g., Shoes, Leather Garments Products, and Furniture Less impacts are seen in high import- Deteriorating demand in the Computers and Parts, Electrical US and Europe, but seeing Appliances, Jewelry and content industries, due to benefits from benefit of lower cost of Ornaments natural FX hedges imports Diversified market, despite Rubber, Tapioca Products, Fresh high use of local content and Frozen Fruit, Sugar, Rubber Sensitivity of Baht to exports and GDP Products, and Tourism

Diversified market & lower Vehicles and Parts, Iron and Steel Baht Appreciation Impact on exports Impact on GDP costs of imports Products, and Machinery 1% - (0.6-1.1%) - (0.1-0.3%)

Domestic market-oriented Petrochemical and Petroleum Less and/or high import content Products, Construction Materials, Impacted Retail and Wholesale Trade, and Other Services Source: KResearch

Source: KResearch, information as of February 2013

102 Monthly Economic Conditions: May 2013

Units: % over-year, otherwise indicated 2012 2013 2011 2012 3Q 4Q 1Q Feb Mar Apr May Key economic figures in May13 Private Consumption Index (PCI) 3.7 5.6 6.8 7.4 3.9 3.3 1.8 1.8 -0.2 reaffirmed that the Thai Sales Volume of Benzene and Gasohol -1.4 5.1 2.3 14.9 7.0 6.3 9.9 12.5 5.0 Value-added Tax at 1995 prices 10.2 15.7 20.6 18.2 6.9 3.3 1.0 3.7 -1.6 economy was experiencing a Imports of Consumer Goods at 1995 prices 13.6 10.0 11.1 13.8 9.1 2.4 -5.3 12.3 0.9 slowing momentum Passenger Car Sales 4.3 86.7 78.6 275.7 97.2 92.1 92.9 22.9 -5.8 Motorcycle Sales 7.4 6.1 -0.5 26.0 5.7 -0.5 0.1 7.3 -11.8 Private spending decelerating Private Investment Index (PII) 7.7 17.1 13.0 28.9 3.7 8.9 3.7 -0.9 -3.3 as effects of stimuli fading Domestic Sales Volume of Cement 4.6 11.6 14.2 20.6 16.1 14.9 17.4 9.5 11.8 Sales Volume of Commercial Cars -4.4 75.4 53.4 227.2 19.4 14.0 11.6 26.5 -1.4 Exports still lackluster as the Imports of Capital Goods at 1995 prices 15.0 24.3 19.7 32.6 -2.3 -8.9 -13.1 -7.3 -12.0 global economy remained weak Value of BOI Applications 54.5 128.4 88.4 203.1 28.7 21.4 56.2 280.9 2.4 Manufacturing Production Index -8.7 2.5 -10.9 43.8 3.0 -1.3 0.9 -4.2 -7.8 Imports contracted led by a Industrial Capacity Utilization 59.3 65.4 66.1 67.0 66.2 63.0 71.1 60.2 65.8 contraction in auto parts and Agriculture Production Index 8.8 5.1 6.3 4.9 1.9 0.2 -0.7 -4.4 0.5 raw material imports Agriculture Price Index 12.1 -9.6 -9.8 -5.3 -4.0 -4.2 -4.1 -3.0 1.5 Exports (In terms of US Dollars) 14.3 3.2 -3.0 18.2 4.5 -4.6 4.2 3.7 -5.1 Current account still in deficit as Unit Value 5.6 0.6 -0.1 1.0 0.4 0.2 -0.1 -0.7 -0.4 outward remittances Volume8.32.6-2.917.04.1-4.84.34.4-4.7 countervailing May13 slight Imports (In terms of US Dollars) 24.9 7.8 -2.5 14.9 7.2 3.7 -12.3 8.5 -4.9 Unit Value 10.1 1.6 -0.5 -0.4 -1.8 -1.7 -2.6 -3.3 -3.4 trade surplus Volume 13.4 6.1 -1.9 15.4 9.2 5.5 -10.0 12.1 -1.6 May13 inflation remained benign Trade Balance (USD millions) 16,989 8,337 5,006 765 -271 575 1,975 -1,620 535 Current Account (USD millions) 5,889 2,728 2,747 923 1,267 1,568 1,936 -3,361 -1,051 because of a base effect Headline CPI 3.8 3.0 2.9 3.2 3.1 3.2 2.7 2.4 2.3 Core CPI 2.4 2.1 1.9 1.8 1.5 1.6 1.2 1.2 0.9 Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), University of the Thai Chamber of Commerce (UTCC), Office of Industrial Economics (OIE), Office of Agricultural Economics (OAE)

103

Economic Condition Highlights: May 2013 May13 BSI rose on weakening Baht, while CCI declined May13 private consumption and investment slowed due to household’s financial constraints due mainly to the fading impact of government stimuli 400% 200% 0.9%

%YoY 0% -0.2% -3.3% -5.8% -1.4% -12.2% -200% PCI PII Passenger Commercial Imports of Imports of Car Sales Car Sales Capital Goods Consumer Goods 4Q12 1Q13 Apr-13 May-13

May13 exports contracted due to sluggish global May13 foreign tourist arrivals were still well above demand and loss of competitiveness on rice exports previous years

2,395

1,890 1,819 1,780

Sources: BOT, MOC, UTCC, OIE

104 Economic Condition Highlights: May 2013

May13 MPI contracted amid sluggish external demands Activities in the property market cooled after a year of high growth

May13 inflation was benign thanks mainly to Land and property prices continued to rise in 1Q13, due to a high base effect but showed a growing demand in the upcountry

Sources: BOT, MOC, OIE, REIC (Real Estate Information Center)

105

Exports and Imports: 5M13 Exports by Country Imports by Country

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

5M13 5M13 Total Exports (BOP Basis) Total Imports (BOP Basis) USD Millions Weight %YoY USD Millions Weight %YoY Total Exports 92,926 100.00% 2.2% Total Imports 94,282 100.0% 4.8% Electronics 10,492 11.3% 1.7% Fuel 20,254 21.5% 1.5% Automotive 12,857 13.8% 14.8% Machinery, equipment, and supplies 19,228 20.4% -5.9% Agro-manufacturing Products 11,939 12.8% -2.4% Electronics parts and electrical appliances 11,027 11.7% -3.1% Machinery & Equipment 7,157 7.7% 2.2% Materials of base metal 9,738 10.3% 9.9% Petro-chemical Products 5,177 5.6% 9.4% Non-monetary gold 8,632 9.2% 42.9% Metal & Steel 5,149 5.5% 36.7% Automotive 6157 6.5% 19.83% Electrical Appliances 5,115 5.5% 8.0% Chemicals 5,673 6.0% -1.4% Petroleum products 4,882 5.3% -12.7% Non-durables Consumer goods 5,642 6.0% 10.7% Chemicals 3,944 4.2% 13.6% Agricultural and agro-manufacturing products 3,714 3.9% -4.9% Rubber 3,613 3.9% -11.0% Plastics 3,131 3.3% -2.1% Source: Bank of Thailand (BOT), BOP Basis = Balance of Payment Basis

106 Export and Import Data: 2012 Exports by Country Imports by Country

22.5% 22.5% 23.1% 25.0% 22.7% 24.4% 13.0% 21.5% 4.9% 5.4%4.7% 5.7%5.1% 23.2% 13.3% 5.2% 5.7%5.3% 23.0% 6.7% 9.8% 9.9% 15.7% 22.4% 11.6% 5.9% 20.0% 11.4% 6.2%5.7% 10.3% 10.7% 10.2% 6.4% 5.8% 18.4% USD Million USD Million 11.3% 10.9% 10.5% 11.8% 11.7% 12.4%6.3% 20.7% 9.1% 10.3% 11.0% 9.5% 18.7% 18.7% 13.3% 14.9% 13.2% 10.6% 11.2% 10.9% 12.2% 13.2% 8.1% 11.9% 24.7% 8.0% 9.0%12.7% 7.6% 7.8% 22.6% 21.3% 22.7% 24.3% 16.8% 18.5% 16.6% 16.2% 16.3%

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

2012 2012 Total Exports (BOP Basis) Total Imports (BOP Basis) USD Millions Weight %YoY USD Millions Weight %YoY Total Exports 226,156 100.0% 3.2% Total Imports 217,819 100.0% 7.8% Electronics 33,004 14.6% 0.9% Machinery, equipment, and supplies 50,537.1 23.2% 28.3% Automotive 29,368 13.0% 26.3% Fuel 47,358.8 21.7% 9.5% Agro-manufacturing Products 28,565 12.6% 4.1% Electronics parts and electrical appliances 27,711.8 12.7% 2.8% Machinery & Equipment 17,091 7.6% 1.9% Materials of base metal 21,866.5 10.0% 1.5% Petroleum products 13,117 5.8% 15.9% Automotive 14,258.3 6.5% 43.4% Petro-chemical Products 11,703 5.2% -1.8% Chemicals 13,674.4 6.3% -4.6% Electrical Appliances 11,531 5.1% 2.2% Non-durables Consumer goods 12,417.5 5.7% 11.5% Metal & Steel 11,410 5.0% 21.3% Non-monetary gold 10,742.3 4.9% -34.8% Rubber 8,746 3.9% -31.1% Agricultural and agro-manufacturing products 9,310.8 4.3% 6.4% Chemicals 8,386 3.7% 2.1% Plastics 7,896.7 3.6% 10.8% Source: Bank of Thailand (BOT), BOP Basis = Balance of Payment Basis

107

Economic Condition Highlights: CAPEX and Investment Cycle

Capacity Utilization by Key Industries: Applications Approved for Investment Promotion*

1,200 983.9 1,000 Total Investment Value (of 800 Approved Household Electrical Appliances Applications) 79.80 600 491.3 447.3

(Bt bn) (Bt 400 281.4 271.3 Integrated Circuits & Parts 53.38 200 Investment Value Vehicles 110.00 0 2009 2010 2011 2012 1Q2013 Basic Metal 53.24 Applications Approved for Investment Promotion by Industry* Rubber & Plastic Products 68.21 500 Chemical & Chemical Products 86.19 400 Paper and Paper Products 67.89 300 2010 200 Garments bn.) (Bt 80.1 37.06 67.8 42.3 2011 100 41.9 23.6 9.3 6.3 Investment Value Investment Tobacco 50.24 2012 0 1Q2013 Food and Beverage 58.04 Avg 04-08 0 50 100 150 2009 2010 2011 2012 1Q2013 Source: BOI Source: BOT, MOC, OIE Note: *Figures above indicate investments of approved projects requesting for investment (Data as of February 2013) promotion benefits from BOI

108 Property Market: No clear sign of property bubble Supply Side: New Housing Completions and New Projects Launched in BMR* Outstanding Mortgage Loans to Individuals and Property Developers to GDP % 1,000 Units

Demand Side: Transferred Properties in BMR* 1,000 Units

Mortgage loans to GDP is higher than the pre-crisis level, due to several factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market

Price growth of Properties Outstanding loans to property developers to GDP was 4.0%, which %(YoY) was lower than the pre-crisis level Supply Side: New housing completions and new projects launched were still below the pre-crisis level Demand Side: In the last 5 years, the number of transferred properties was still higher than the supply side figures Prices: Property prices are on an upward trend, albeit at a slow pace NPL ratio for mortgage loans at Thai commercial banks was low at 2.3% as of 4Q12 Sources : National Economic and Social Development Board (NESDB), BOT, Real Estate Information Center (REIC), Agency for Real Estate Affairs (AREA), the BOT, and KResearch Note: * Including Condominium, Single House and Townhouse; BMR = Bangkok and Metropolitan Area

109

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

Old Definition New Definition

Household Borrowing to GDP is higher than the pre- Old Definition: Data from 1991 – 1997 are lending from commercial banks and SFIs to individual persons for consumption only crisis level, due to several sectors such as changes in New Definition: For the data from 2010 onwards, the information accounts for all individual persons’ outstanding loans from all types of financial institutions, including saving Co-ops and non-banks consumer behavior, intense competition among banks, and a more accessible credit market Debt Service Ratio Cross Country Comparison Although household borrowing to GDP is rising, the High probability of insolvency debt service ratio of Thai households is still at a moderate level as interest rates are kept low NPL ratio for consumption loans of Thai commercial banks is on a decreasing trend reflecting a better quality of retail credit

Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), and KResearch

110 Key Regulations for Mortgage Loans

The BOT has taken preventive actions and closely monitored risk in the property market

¾ Risk weights for mortgage loans dropped from 50% to 35% under Basel II since 2008

¾ However, the BOT announced revised criteria in 2009-2010 on mortgage loan risk weights with a different effective date

Loan to Value Risk Price Condominium House Effective Date (LTV) Weights ≥ Bt10mn 9 9 > 80% March 2009 < Bt10mn 9 > 90% January 2011 75% < Bt10mn 9 > 95% January 2013* ≥ Bt10mn 9 9 ≤ 80% March 2009 < Bt10mn 9 ≤ 90% 35% January 2011 < Bt10mn 9 ≤ 95% January 2013*

Note: * The effective date is postpone from January 2012, due to the severe floods in 2011 Source: The Bank of Thailand

111

Other Figures Credit Card Loans/GDP

Housing Loans/GDP

2,500,000 19.9% 21% 20% 19.3% 19.3% 2,000,000 18.9% 20% 18.7% 19% 1,500,000 19% 17.2% 18% 16.9% 18% 1,000,000 17%

Million Baht Million Note : Credit card loans represent outstanding credit card loans in Commercial banks and non-banks but 17% Percent to to GDP Percent excluding SFIs, Saving Cooperatives and others financial Institution 500,000 16% 16% 1,438,039 1,560,724 1,709,897 1,885,139 2,034,137 2,263,552 2,309,998 Personal Loans/GDP - 15% 2007 2008 2009 2010 2011 2012 1Q2013 Housing Loans for Personal Consumption (LHS) Housing Loans to GDP (RHS)

Note : Housing loans represent outstanding housing loans for personal consumption that financial institutions (including Commercial banks, Finance companies, Credit financiers, SFIs, and Insurance companies but excluding Saving Cooperatives and others financial Institution) grant to individuals or householders Note : Personal Loans represent outstanding personal loans under supervision Source: BOT, NESDB (including Commercial banks and non-banks but excluding SFIs, Saving Note: 2013 GDP is based on 1Q2013 GDP annualized Cooperatives and others financial Institution) .

112 Other Figures

GDP Per Capita (Baht) Bond Yields

11.1% 5.00 % 200,000 9.8% 12.0% 8.3% 4.00 7.9% 7.3% 10.0% 150,000 8.0% 5.8% 3.9% 3.00 3.35 3.67 3.15 3.24 3.28 6.0% 2.75 2.82 2.97 3.04 100,000 2.00 2.60 2.61 2.71 -1.1% 4.0% 1.00 50,000 2.0% 0.0% 0.00 - -2.0% 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 15Y 2005 2006 2007 2008 2009 2010 2011 2012 12/2011 12/2012 5/2013 Unemployment Rate Foreign Direct Investment 350,000 100.0% 300,000 80.0% 250,000 60.0% 40.0% 200,000 20.0% 150,000 -28.2% 0.0% THB Million 100,000 -20.0% 50,000 -40.0% 20,668 281,654 166,437 308,407 237,185 267,546 0 -60.0% 2008 2009 2010 2011 2012 2M2013 FDI %YoY

Note: FDI refers to equity investment, lending to affiliates, and reinvested earnings. Investment in Source: NESDB, National Statistical Office (NSO), and KResearch equity is treated as a direct investment when the direct investors own 10% or more of ordinary shares

113

Other Figures Loans to GDP as of 2011 Thai Banks’ Net Loans and NPLs

Note: Data on China, Korea and Japan include loans from commercial banks as well as financial Note : %YoY Net loans represent growth of net loans in Commercial banks (include LHBANK) institutions, the rest include loans from only commercial banks Thai Banks’ Liquidity Credit Card Statistics

Note: The credit card statistics number include Foreign Banks’ Credit Card Note: The liquidity includes cash, as well as net positions in the short-term money market and net investments Source: BOT, NSO, CEIC, and KResearch

114 The ASEAN Economic Community (AEC) By 2015, ASEAN will be transformed into the “ASEAN Economic Community,” with free movement of goods, services, investment, and skilled labour, and a freer flow of capital

AEC by 2015 M Y AN M A Single Integration R Competitive Equitable Market and With the Economic Economic Production Global Region Development Base Economy

Size of ASEAN Economy (USD Trillion)

2.58 2.41 2.25 2.09 2.14 1.90 Thailand-ASEAN Trade: around 19% average growth expected during Average Projected GDP 2012-2015 Growth = 5-6%

2010 2011 2012F 2013F 2014F 2015F

Source : IMF (October 2012), KResearch Source: The Association of Southeast Asian Nations, KResearch

115

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116 DISCLAIMER: This document is intended to provide material information relating to investment or product in discussion and for reference during discussion, presentation or seminar only. It does not represent or constitute an advice, offer, contract, recommendation or solicitation and should not be relied on as such. In preparation of this document, KASIKORNBANK PUBLIC COMPANY LIMITED (“KBank”) has made several crucial assumptions and relied on the financial and other information made available from public sources, and thus KBank assumes no responsibility and makes no representations with respect to accuracy and/or completeness of the information described herein. Before making your own independent decision to invest or enter into transaction, the recipient of the information (“Recipient”) shall review information relating to service or products of KBank including economic and market situation and other factors pertaining to the transaction as posted in KBank’s website at URL www.kasikornbank.com and in other websites including to review all other information, documents prepared by other institutions and consult financial, legal or tax advisors each time. The Recipient understands and acknowledges that the investment or execution of the transaction may be the transaction with low liquidity and that KBank shall assume no liability for any loss or damage incurred by the Recipient arising out of such investment or execution of the transaction. The Recipient also acknowledges and understands 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 execution of the transaction. Further the Recipient should be aware that the transaction can be highly risky as the markets are unpredictable and there may be inadequate regulations and safeguards available to the Recipient. KBank reserves the rights to amend either in whole or in part of information so provided herein at any time as it deems fit and the Recipient acknowledges and agrees with such amendment. Where there is any inquiry, the Recipient may seek further information from KBank or in case of making complaint, the Recipient can contact KBank at [email protected] or +(662) 470 6900 to 01, +(662) 470 2673 to 74.

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