Krungsris Business Strategy 6 April 2015 Krungsri's Business - PowerPoint PPT Presentation

Krungsri’s Business Strategy 6 April 2015 Krungsri's Business Strategy | 6 April 2015 A member of MUFG, a global financial group

This document contains forward-looking statements in regard to forecasts, targets and plans of Bank of Ayudhya Public Company Limited (“KS”) and its group companies (collectively, “the group”). These forward-looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other financial disclosure and public filings made or will be made by KS and the other companies comprising the group, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed The financial information used in this material was prepared in accordance with accounting standards generally accepted in Thailand 2

Table of contents Who is Krungsri 4 Key Financials & 12 Development Highlights New Krungsri - Integration 18 and Synergies with BTMU 3 Krungsri's Business Strategy | 6 April 2015

Who is Krungsri 4 Krungsri's Business Strategy | 6 April 2015

Our History 1945 Officially established 2007 Bank of Ayudhya, “Krungsri” and GE became strategic partners 2008 Acquisition of GE Capital Auto Lease, subsequently renamed to Krungsri Auto 2009 Acquisition of AIG Retail Bank Pcl. and AIG Card (Thailand) Co., Ltd. Acquisition of CFG Services Co., Ltd. (Srisawad), a micro finance business from AIG Acquisition of GE Money Thailand, a consumer finance company 2012 Acquisition of HSBC Thailand’s retail banking businesses Shareholding Structure Dec 2013 BTMU replaced GE as the strategic shareholder of Krungsri Ratanarak Group & Others, Jan 2015 Integration of BTMU Bangkok Branch into Krungsri 23.12% BTMU, 76.88% 5 Krungsri's Business Strategy | 6 April 2015

Facts about Krungsri 1 Personal Loan Global Ranking Thai Banks Ranking • 3.2 million accounts Forbes • 27% market share 1,259 The Global 2000 Commercial 5 1 Sales, Profits, Assets Banks Credit Card and Market Capitalization by Assets, Deposits and Loans • 3.7 million accounts • 15% market share SET Ranking Credit Ratings 2 Auto (HP) 11 THB 271.8 bn * 1 Highest rating (A-) Market Capitalization among top banks in • # 1 in used car financing Thailand by Fitch Ratings • 18% market share * Stock Exchange of Thailand (30 December 2014) 6 Krungsri's Business Strategy | 6 April 2015

Our Strong and Broad Franchise Exclusive Banking & Business ATMs Domestic Branches Overseas Branches Center 616 Banking Branches 28 Auto Business Branches 5,103 644 3 74 First Choice Micro Finance Krungsri Auto EDC 78 Branches 323 6,300 Dealers 38,391 + 13,870 Dealers 7 Krungsri's Business Strategy | 6 April 2015

Our Broad-Based Alternative Channels SMS Banking Internet Banking 1.4 Million Users 700,000 Users Krungsri Mobile Krungsri Website Social Networks 800,000 Users 50 Million Page View 1,150,000 Users 8 Krungsri's Business Strategy | 6 April 2015

Krungsri Group Companies Credit Card, Personal Loan & Sale Finance Asset Management • Krungsriayudhya Card Co., Ltd (KCC) - 99.99% • Ayudhya Capital Services Co., Ltd. (AYCAP) - 99.99% • Krungsri Ayudhya AMC Ltd. (KAMC) - 99.99% • Tesco Card Services Ltd. (TCS) - 50.00% • General Card Services Ltd. (GCS) - 99.99% Auto Hire Purchase and Leasing Investment Management • Ayudhya Capital Auto Lease Plc. (AYCAL) - 99.99% • Krunsri Asset Management Co., Ltd. (KSAM) - 76.59% Collection Services Securities • Total Services Solutions Plc. (TSS) - 99.99% • Krungsri Securities Plc. (KSS) - 98.71% Micro Finance Support Business • CFG Services Co., Ltd. (CFGS) - 99.99% • Siam Realty and Services Co., Ltd. (SRS) - 99.99% Leasing • Ayudhya Development Leasing Co., Ltd. (ADLC) - 99.99% Factoring • Krungsri Factoring Co., Ltd. (KSF) - 99.99% 9 Krungsri's Business Strategy | 6 April 2015

Krungsri Credit Ratings • After Krungsri became a strategic member of MUFG/BTMU in late 2013, credit ratings were upgraded with the rationale that Krungsri is strategic importance to BTMU and thus will benefit from parental support from BTMU. • Krungsri’s ratings are now on par with other top banks in Thailand. International Ratings Fitch Ratings Moody’s Standard & Poor's Foreign Foreign Issuer Credit currency Long Term Rating Outlook Long Term Long Term Deposit Outlook Outlook Stable Krungsri A- Baa1 Stable BBB+ Stable National Ratings TRIS Rating Fitch Ratings Foreign Foreign currency Long Term Long Term Outlook Deposit Outlook Krungsri AAA (tha) Stable AAA Stable Krungsri Auto 1 na na AA- Stable CFGS 2 na na A- Stable 1 Ayudhya Capital Auto Lease Pcl. (AYCAL) 2 CFG Services Co., Ltd. (CFGS) 10 Krungsri's Business Strategy | 6 April 2015

What Guides Krungsri Krungsri MISSION “To be a leading regional financial institution with global reach, committed responsibly to meeting the needs of our customers and serving society through sustainable growth.” Krungsri VISION “Highly qualified team of professionals providing innovative products and services, dedicated to becoming our customers’ number one preferred financial group.” Krungsri VALUES • Integrity • Team Spirit • Customer Centricity • Passion for Excellence • Embracing Changes • Global Awareness 11 Krungsri's Business Strategy | 6 April 2015

Key Financials & Development Highlights 12 Krungsri's Business Strategy | 6 April 2015

5 Year Financial Highlights Consolidated Loans & Deposits Net Interest Margin (NIM) NPLs & Coverage Ratio (THB Bn) (%) (THB Bn) Coverage ratio (%) 1,012.8 106% 146% 145% 133% 943.5 4.60% 4.51% 4.33% 4.37% 4.32% 830.0 89% 719.5 NPLs 649.0 (THB Bn) NPLs (%) 38.1 29.5 29.9 27.0 of total 576.5 560.5 687.2 764.1 837.6 21.3 Loans 2.7% 2.8% 5.5% 3.7% 2.4% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Loans Deposits Fees & Service Income Capital Base NET Profit (THB Bn) (%) (THB Bn) Bank only Tier 2 Tier 1 14.67 14.32 15.84%16.29%16.94% 11.98 16.43 18.54 19.19 1 14.68%14.69% 4.44% 6.00% 9.30 8.82 12.90 13.84 4.30% 4.51% 3.71% CAR required 11.54%11.85%10.94% 10.17% by BOT at 10.98% 8.50% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 (Note) 1. Bank only (BASEL III effective in January 2013) 13 Krungsri's Business Strategy | 6 April 2015

2014 Key Financial Highlights Consolidated Deposit Growth Loan Growth CASA (THB Bn) (THB Bn) +7.3% YoY +9.6% YoY 51% 837.6 1,012.8 764.1 943.5 NIM 4.32% 2013 2014 2013 2014 2013: +13.7% 2013: +11.2% Fee Income Growth NPL Cost-to-Income Ratio (THB Bn) +3.5% YoY 2.79% 19.2 18.5 48.47% Coverage 133% 2013 2014 2013: +14.2% 2013: 48.91% 14 Krungsri's Business Strategy | 6 April 2015

Broad-Based Growth Across All Business Segments in 2014 Consolidated SME Loan Corporate Loan Retail Loan (THB Bn) (THB Bn) (THB Bn) +9.5% +6.9% +6.3% 497.2 295.0 220.7 206.5 269.4 467.7 2013 2014 2013 2014 2013 2014 December 2014 After BTMU Integration SME SME SME 18% 20% 22% Retail Retail Retail 49% Auto HP 24% 40% THB 1,012.8 Mortgage 13% Billion Credit Card & Personal Corp 12% Loans Corp 29% 40% 42% 15 Krungsri's Business Strategy | 6 April 2015

Satisfactory Performance Despite Challenging Environment 2 0 1 4 2 0 1 4 T arg ets  L o an G ro w th (N et) +7 .3 % +7 %  N P L s R atio 2 .7 9 % ~ 2 .9 %  D ep o s it M ix: S av in g s an d C u rren t 5 1 % ~ 5 0 %  L o an M ix : R etail 4 9 % n .d .  L /D R atio 1 2 1 % n .d . ~ L /D ep o s it+D eb en tu res +B /E 1 0 6 % 1 0 0 %  N IM 4 .3 2 % ~ 4 .2 % ~ F ee In c o m e G ro w th (Y o Y ) 3 .5 % 5 %  C o s t to In c o m e R atio 4 8 .4 7 % < 4 9 % ~ P ro v is io n s 1 7 9 b p s ~ 1 7 0 b p s  L o an L o s s C o v erag e 1 3 3 % 1 2 5 -1 3 0 %  C A R (B a n k O n ly ) 1 4 .7 % n .d . 16 Krungsri's Business Strategy | 6 April 2015