Annual Report 2020 Saksiam Leasing Public Company Limited December 8, 2020 Saksiam Leasing Public Company Limited by Dr. Suphot Singhasaneh (Chairman of the Board of Directors) Asst. Prof. Dr. Phoonsak Boonsalee (President of Executive Committee) Mr. Siwaphong Boonsalee (Managing Director) together with the directors, executives and employees witnessed the opening of the first day of trading on the Stock Exchange of Thailand.” Contents Part 1 Business Operations and Operating Results 4 Structure and Business Operation 32 Risk Management 41 Driving Business for Sustainability 45 Management Discussion and Analysis : MD&A 70 General Information and other Significant Information Part 2 Corporate Governance 73 Corporate Governance Policy 79 Management structure and key information relating to the Board of Committees, the Board of Sub-Committees, Executives, Employees and others 97 Key Operating Performance Report of Corporate Governance 111 Internal Control and Cross Transaction 121 Part 3 Financial Statements Attachment 182 Attachment 1 Profiles of Directors, Executives, Controlling Persons and Roles and Duties of the Board of Directors 199 Attachment 2 Profiles of the Board of Sub-Committees December 8, 2020 200 Attachment 3 Profiles of Head of Internal Audit Saksiam Leasing Public Company Limited by 201 Attachment 4 Assets Used in Business Operation and Assets Appraisal List Dr. Suphot Singhasaneh (Chairman of the Board of Directors) 208 Attachment 5 Corporate Governance Policy and Business Ethics Asst. Prof. Dr. Phoonsak Boonsalee (President of Executive Committee) Mr. Siwaphong Boonsalee (Managing Director) together with the directors, 209 Attachment 6 Audit Committee Report executives and employees witnessed the opening of the first day of trading on the Stock Exchange of Thailand.” Part 1 Business Operations and Operating Results Structure and Business Operation Policies and overall business operation Saksiam Leasing Public Company Limited (the “Company”) provides services on personal loan under supervision of the Bank of Thailand that has a vehicle registration as collateral, personal loan under supervision having no vehicle registration as collateral, and other loan to retail customers publicly, with the trade mark“Saksiam Leasing”. The group of loans can be divided into three Products: (1) personal loan under supervision that has a vehicle registration as collateral i.e. loan that has vehicle registration as collateral and loan that has vehicle registration as collateral with specific conditions for farmers; (2) personal loan under supervision having no vehicle registration as collateral; and (3) other loans including nano finance business and hire purchase loan. The Company was incorporated for more than 25 years by providing services through branches office in the total amount of 519 branches covering 38 provinces in Northern, Northeastern, Central, and Western region to provide accessible fund to the local people for vocational purpose or other purposes. On December 31, 2020, the Company has executives and employees in total of 1,596 people. Vision, Missions, Objectives or Strategy of the Company’s Business Operation Vision To provide retail lending services to the local people, having branches throughout Northern, Northeastern, Central, and Western region and to be known and trustworthy in good quality of employees and services. Missions To be a local source of fund, providing services of personal loan under supervision of the Bank of Thailand and other loans to the people in compliance with the Market Conduct, to establish a sustainable growth of operating results, to gain confidence from investors and financial institutions and to develop the human resources to be excellent in services providing in order to achieve customer’s satisfaction at highest. Objectives 1. Expanding the business of providing services of personal loan under supervision and other loans to the local people throughout Northern, Northeastern, Central, and Western region. In this regard, the Company plans to expand its branches to around 1,119 branches by 2023. 2. Establishing a sustainable growth in operating results by increase the loan portfolio to THB 12,000 million by 2023. 3. Developing the quality of lending service and becoming a well-known lending service to the people by being the first lending service that the people trust, consider, and choose to use and becoming competitive in this business. 4. Developing the human resources to be excellent in services providing in compliance with the Market Conduct. 4 Saksiam Leasing Public Company Limited Part 1 Business Operations and Operating Results Significant changes and developments The Company was former named Saksiam Panich Leasing Company Limited being established on January 9, 1995, with a registered capital of THB 1,000,000, with its head office at No. 49/47 Chetsada Bodin Road, Tha It Sub-district, Muang Uttaradit District, Uttradit Province, having its core objective to provide personal loan that has a vehicle registration as collateral to retail customers. On June 20, 2016, the Company converted to a public limited company and changed its name to Saksiam Leasing Public Company Limited. The Company obtained a license to operate personal loan under supervision business from the Ministry of Finance in 2005, and obtained a license to operate nano finance under supervision business from the Ministry of Finance in 2017. Then, the Company received a permission to operate personal loan under supervision business that has a vehicle registration as collateral from the Bank of Thailand (“BOT”) in 2019. Presently, the Company has registered and paid-up capital in the amount of THB 2,096,000,000, the significant changes is detailed as follows; Year Description 1995 • Incorporation of “Saksiam Panich Leasing Company Limited” with initial registered capital in the amount of THB 1,000,000, and then expanded its branches to Lampang Province. 1996 • Increased its registered capital to THB 2,140,000, and expanded its branches to Sukhothai Province and Nan Province. 1997 - 1998 • Increased its registered capital to THB 12,920,000, and expanded its branches to Phitsanulok Province and Phetchaboon Province. 2003 • Increased its registered capital to THB 20,000,000. 2005 • Increased its registered capital to THB 50,000,000 to be satisfy requirements for obtaining a license to operate the personal loan under supervision business from the Ministry of Finance, and obtained such license on October 21, 2005. • Started providing loan that has vehicle registration as collateral with specific conditions to farmers (Farmer Loan) 2011 - 2012 • Increased its registered capital to THB 200,000,000, and expanded its branches to Phichit Province, Lopburi Province, Chiangrai Province, Phayao Province, and Phrae Province. 2013 - 2014 • Increased its registered capital to THB 350,000,000, and expanded its branches to Loey Province, and Kamphaeng Phet Province. 2015 • Increased its registered capital to THB 500,000,000, and expanded its branches to Lampoon Province. 2016 • Converted to a public limited company and changed its name to Saksiam Leasing Public Company Limited on June 20, 2016. • Increased its registered capital to THB 1,000,000,000, and expanded its branches to Khon Kaen Province, Chaiyaphum Province, Nong Bua Lam Phu Province, and Nakhon Sawan Province. 2017 • Increased 79 more of its branches and expanded its branches to Kalasin Province, Chai Nat Province, Chiangmai Province, Maha Sarakham Province, and Uthai Thani Province. 2018 • Increased its registered capital to THB 1,250,000,000. • Increased its registered capital to THB 1,400,000,000. • Increased 101 more of its branches and expanded its branches to Tak Province, Sakon Nakhon Province, Sing Buri Province, Suphan Buri Province, and Ang Thong Province. Annual Report 2020 Form 56-1 One Report 5 Part 1 Business Operations and Operating Results Year Description 2019 • Increased its registered capital to THB 1,550,000,000 in order to offer newly issued ordinary shares to Bualuang Ventures Company Limited (“Bualuang Ventures”) in the amount of 150,000,000 shares. • Increased its registered capital to THB 2,096,000,000 and offered (1) the newly issued ordinary shares in the amount not exceeding 54.6 million shares to directors, executives, and/or employees of the Company pursuant to the offering of newly issued ordinary shares to directors, executives, and/or employees of the Company project and (2).the newly issued ordinary shares in the amount of not exceeding 491.4 million shares to the public including the patronage of the Company by initial public offering transaction (IPO). For the remaining newly issued ordinary shares that had not been subscribed by the directors, executives, and/or employees of the Company under such project in (1), such remaining shares would be offered to the public instead. • Increased 68 more of its branches and expanded its branches to Kanchanaburi Province, Nakhon Phanom Province, and Saraburi Province. 2020 • The Company carried on the Initial Public Offering (IPO) by offering total 546,000,000 shares at a price of THB 3.70 per share, and the Company registered its paid-up capital to THB 2,096,000,000 (2,096,000,000 ordinary shares at a par value of THB 1) with the Department of Business Development, Ministry of Commerce on December 1, 2020. In addition, the Stock Exchange of Thailand listed the Company’s shares as securities to be traded on December 8, 2020. • Increased 78 more of its branches and expanded its branches