KTC Story

Consumer Finance Industry & KTC Portfolio Performances

- Credit Card Business

- Personal Loan Business

KTC Story

Total Portfolio

12.0%

Card Spending

15.4%

NPL

1.9%

COF

3.3%

Net Profit

17.0%

Personal loan

16.9%

Credit card

10.4%

1.0%

Credit card

1.4%

Personal loan

(YoY)

(YoY)

(YoY)

NIM

15.3%

Top 10 Shareholders (as of Jun 30, 2016)

2011 2012 2013 2014 2015 2Q16

Thai Institutional Holding 51.59% 51.63% 53.18% 62.87% 72.01% 70.82%

Thai Individual Holding 38.43% 45.21% 43.45% 29.32% 21.87% 23.90%

Foreign Holding 9.97% 3.15% 3.37% 7.81% 6.12% 5.28%

Total Number of Shareholders 4,198 2,735 3,550 3,125 3,426 4,292

5

KTB

Foreign

49.45%

5.28%

Thai Institutional

Thai Individual

21.37%

23.90%

• Incorporated in 1996 as a credit card servicing subsidiary company of Krungthai Bank PLC

• In July 2002, KTB sold the credit card portfolio to KTC which subsequently transformed KTC into a full consumer finance company and later listed on the SET in October 2002

1 Krung Thai Bank Public Co., Ltd. 49.45%

2 Mr. Mongkol Prakitchaiwattana 8.91%

3 Thai NVDR 4.39%

4 Ms. Chantana Jirattitepat 3.08%

5SCB DIVIDEND STOCK 70/30 LONG TERM EQUITY

FUND1.85%

6 TISCO Master Pooled Fund 1.46%

7 Thai Value Focus Equity – Dividend Fund (UOBAM) 1.42%

8 Mr. Yue Kwok-Leung 1.22%

9 EGAT Provident Fund (UOBAM) 1.01%

10 CHASE NOMINEES LIMITED 0.73%

Source: TSD

6(As of June 30, 2016)

% of Total Receivables % of Total Revenue

7

Consumer Finance Industry & KTC Portfolio PerformancesConsumer Finance Industry &

KTC Portfolio Performances

Note: Beginning at 1Q2015, calculation method of quarterly Private Consumption Expenditure has been changed from Fixed Base YearMethod (base year of 1988) to Chain Volume Measures: CVM, which all previous data since 1Q1993 have been restated

0.61 0.69 0.72 0.81 0.91 1.07 1.20 1.31 1.39 0.71

4.77 5.21 5.13

5.63 5.98

6.54 6.76 6.92 6.98

3.58

12.9% 13.2% 14.0% 14.5% 15.1% 16.4% 17.7% 18.9% 19.9% 20.0%

6M16

Baht Trillion

Total Credit Card Spending of Industry Private Consumption Expenditure Total Credit Card Spending of Industry (%)

Total Credit Card Spending Private Consumption Expenditure

10.1%

4.5%

CAGR (%)

PCE

Card

Spending

CAGR (%)

9Source: BoT & NESDB

1,567,2831,807,755 1,887,015 1,988,842

2.5%

15.3%

4.4% 4.9%

6M16

# of cards (unit)

Number of Cards Growth (YoY)

10

48.7% 48.0% 46.5% 46.0% 45.9%

51.3% 52.0% 53.5% 54.0% 54.1%

8.4% 8.9% 8.7% 9.0% 8.8%

1Q16 6M16

Commercial Banks Non Banks KTC

Market Share

6M16

27% 27% 32% 34%

5% 9%8% 7%

46%34%

33% 34%

22%

30% 27% 25%

Others

Outsources & Telesale

KTC Touch

KTB

Distribution Channels

Others: Printing Media Insertion, Marketing Events, Internet, Corporate Alliance, Take One Partner,

Network Management, Others

10.0%

9.5%

7.2%8.2% 8.4%

2.5%

15.3%

4.4%

8.0%

4.9%

1Q16 6M16

Industry KTC

%Growth (YoY)

Source: BoT & KTC

1111

120,929129,828

145,800

68,14178,664

4.0%

7.4%

12.3%11.7%

15.4%

6M15 6M16

Baht Million

Spending Growth (YoY)

11.2% 9.4%

6.6%8.2% 8.0%

4.0%

7.4%

12.3%

15.5% 15.4%

1Q16 6M16

Industry KTC

% Growth

66.3% 66.9% 66.3% 66.8% 66.5%

33.7% 33.1% 33.7% 33.2% 33.5%

10.1% 9.9% 10.5% 10.8% 11.0%

1Q16 6M16

Commercial Banks Non-Banks KTC

Market Share

Source: BoT & KTC

%NPL (90dpd) 2013 2014 2015 6M16

Industry 2.29% 2.61% 3.10% 3.13%

Commercial Bank 2.64% 3.17% 3.95% 4.01%

Non-Bank 1.75% 1.75% 1.79% 1.80%

KTC 2.19% 1.66% 1.35% 1.37%

Portfolio Quality97.8%

98.3%

98.7% 98.6%

2.2%

1.7%

1.3%1.4%

35,297

37,621

41,41241,102

2.5% 2.3% 2.0% 2.1%

6M16

<= 90 days > 90 days Delinquency

Baht Million

11.0%

9.5%

5.8% 5.6%6.2%

3.8%

6.6%

10.1%9.4%

10.4%

1Q16 6M16

Industry KTC

%Growth (YoY)

60.4% 60.8% 60.9% 60.5% 60.3%

39.6% 39.2% 39.1% 39.5% 39.7%

12.2% 11.8% 12.3% 12.8% 13.0%

1Q16 6M16

Commercial Banks Non-Banks KTC

Market Share

12Source: BoT & KTC

6M16

30% 29%38% 40%

2% 3%2% 1%

65% 64%57% 56%

3% 4% 3% 3%

Others

Outsources & Telesale

KTC Touch

KTB

Others: Internet, Marketing

Events, and Others

Distribution Channels

12.5%

3.2%

8.6%10.0%

6.8%

2.0%

8.5%

7.8% 8.4%

9.8%

1Q16 6M16

Industry KTC

%Growth (YoY)

13

638,959693,273

747,343784,395

2.0%

8.5% 7.8%9.8%

6M16

Amount %Growth (YoY)

(unit)

25.5% 24.2% 20.9% 20.3% 19.3%

74.5% 75.8% 79.1% 79.7% 80.7%

5.6% 5.9% 5.8% 5.9% 6.0%

1Q16 6M16

Commercial Banks Non Banks KTC

Market Share

Source: BoT & KTC

14Source: BoT & KTC

Baht Million16.3%

4.6% 3.8%2.8% 3.2%

14.2% 10.1%11.6%

15.0%16.9%

1Q16 6M16

Industry KTC

%Growth (YoY)

98.5%

98.8%

99.0%

99.0%

1.5%

1.2%

1.0%

1.0%

15,121

16,644

18,583

19,597

3.4% 3.2% 2.8% 2.8%

6M16

<= 90 days > 90 days Delinquency

52.9% 51.3%

48.6% 48.0% 47.4%47.1% 48.7%

51.4% 52.0% 52.6%

5.1% 5.3% 5.7% 5.9% 6.0%

1Q16 6M16

Commercial Banks Non Banks KTC

Market Share

Portfolio Quality

%NPL (90dpd) 2013 2014 2015 6M16

Industry 3.65% 4.55% 5.17% 3.22%

Commercial Bank 3.80% 4.56% 5.01% 4.39%

Non-Bank 3.48% 4.54% 5.33% 2.16%

KTC 1.47% 1.17% 1.04% 1.04%

51.954.5

60.2 60.3

45.847.1

51.4 51.2

39.441.6

45.1 45.8

6.1 7.4 8.7 9.1

7.5

6.45.9 5.6

6M16

Assets Liabilities Interest Bearing Debt Equity D/E

Baht billion

30% 31% 28%

13% 4%

57%65% 72%

41.645.1 45.8

4.4%

3.7%3.3%

6M16

Short-term Loan Long-term Loan Debentures Cost of fund

Baht billion

Total Available Credit Line = 25,290 MB KTB = 18,030 MBOthers = 7,260 MB

KTC rating : A+ by TRIS

Key B/S Figures Fund Usage

15Source: KTC

16

(1) The company’s total comprehensive income was THB 2,074 million (Other comprehensive income THB 0.9 million – net of income tax).

Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY)

Total Revenue 14,337 10.0% 15,559 8.5% 8,437 12.6%

Bad Debt Recovery 1,766 22.1% 2,037 15.3% 1,156 20.0%

Administrative Expenses 5,377 13.2% 6,139 14.2% 3,357 17.1%

Marketing Expenses 945 43.6% 956 1.2% 536 31.8%

Fee Paid Expenses 1,180 6.4% 1,701 44.2% 1,009 37.9%

Interest Expense 1,764 (5.4%) 1,621 (8.1%) 758 (9.8%)

Pre-Provisioning Profit 7,195 12.0% 7,799 8.4% 4,322 14.2%

Write-Off and Provision 4,989 (2.0%) 5,183 3.9% 2,797 12.9%

Profit before Tax 2,206 65.7% 2,616 18.5% 1,525 16.6%

Income Tax - Income (Expense) (451) 53.2% (543) 20.3% (311) 15.0%

Net Profit (Loss) 1,755 36.8% 2,073 18.1% 1,215 17.0%

Operating ResultsY2014 Y2015(1) 6M16

Source: KTC

17

(1) Excluding Net Interchange & Marketing Expenses

Year

2014

Year

20156M16

Net Profit Margin 12.2% 13.3% 14.4%

Cost to Income Ratio 37.5% 39.5% 39.8%

Operating Cost to Income Ratio(1) 27.3% 29.4% 29.2%

Average Interest Received (including credit usage) 18.7% 18.2% 18.7%

Average Cost of Fund 4.4% 3.7% 3.3%

Net Interest Margin (including credit usage) 14.3% 14.5% 15.3%

D/E Ratio (times) 6.4 5.9 5.6

ROE 26.0% 25.7% 27.2%

ROA 3.3% 3.6% 4.0%

Allowance/Total Receivables 8.9% 8.2% 8.4%

Allowance/NPL 363.9% 399.9% 439.4%

Earning per share 6.8 8.0 4.7

Book Value per Share (Baht) 28.6 33.9 35.3

Dividend Payout Ratio 40.4% 40.4% NA

Source: KTC

18

Net Profit (MB)

2014 1,755

%Growth (YoY) – Total Port

2014 7.4%

%Growth (YoY) – Total Card Spending

2014 7.4%

% NPL – Total Port

2015 2,073 2015 10.3%

2015 15% 2015

2.4%

2.1%

2016 Maintain 2,073 MB

2016 Target ≤ 2.1%

2016 Target = 10%

2016 Target = 15%

6M16 1,215 6M16 12%

6M16

2014

6M16 1.9%15.4%

AUGUST 16, 2016

MARKETING PROGRAM

CREDIT CARD BUSINESS

- Campaigns in gas and supermarket / discount store categories to drive spending frequency

- Forever Rewards point redemption for discounts & give away premium as key mechanics

Everyday Spending

- Continue to penetrate the premium segment

- Brand visibility and privileges at leading Department stores ,Duty free ,Shopping Complex , Apparels ,Watch, Jewelry, Optical, and Cosmetic , etc.

- Forever Rewards point discount ,cash back , flexi as key mechanics

Shopping

- Continuous promotions with both large and medium chain restaurants

- Continue to expand stand alone restaurants especially the trendy and premium ones

- Expand more into the community mall diners segment

Dining

Partnering with over 100 fine hotels & resorts to launch

KTC FINE SELECTION CAMPAIGN (May-July 2016) :

Instant Privilege : up to 60% discount covering FINE TASTE (hotel dining), FINE STAY (hotel accommodations), FINE STYLE (Wedding Packages) + Lucky Draw Prizes

Hotel

Travel

พลิกปรากฎการณ์ท่องเท่ียวไทย ครั้งแรกในประเทศส าหรับการพาตามรอย

๗ โบราณสถาน และ ๕ ต านานสวุรรณภมูิเพื่อพิสูจน์เรื่องเล่าหลายชาติแห่งแผน่ดินแหลมทอง

สัมผัสสีสันแหง่ความเป็นไทย ผ่านการ บิน-เที่ยว-พกัสไตล์บตูกิเจ้าของรางวัลระดับชาติ

Thailand Boutique Awards

COLOURS of BOUTIQUE STAY packagesKTC is

the ONLY NON-tourism operator

out of 212 entries

from 71 countries worldwide

- Strong partnership with National Tourism Organizations

- A well-balanced of domestic and outbound creative partnership programs

- Exceptional achievement in GLOBAL TOURISM ARENA

from our BREAKTHROUGH campaigns

International Spending

- Spending volume growth 33% YoY

- Continue to offer privileges at top merchants in top spending countries & leverage special offers from key partners : Visa, MasterCard and JCB

International spending ‘cash back’ campaign : 1 Jun – 30 Sep

Special privileges

at top spending countries from Visa

An exclusive International spending campaign collaborate with Korea ‘Lotte Duty Free’

Special privileges in Japan from

JCB-------

Both travel related

services and top

merchants

Occasional Purchase• Offer flexi 0% all product categories• Capture seasonal period to promote seasonal campaigns:

Cooling Fair, TV Special, Mobile / Gadget New Model Launch, Gold Special Rate, School Break

• Secure position at major events: TME, Commart, Power Buy Expo, HomePro Expo, HomeWork and PowerBuy Super Sale

Major events

Seasonal Campaigns

Flexi 0% Promotions

- > 260 hospitals nationwide with KTC privileges, plus special offers in health check-up packages

- Special membership offers from leading gyms / fitness

- Beauty campaigns with Flexi 0% installment

Sports , Health & Beauty

- cash back up to 15% when redeem Forever Rewards points in an amount

equivalent to the amount spent online per transaction

- special privileges at more than 50 leading online websites (discount, extra Forever Rewards points, flat discount with minimum purchase, etc)

Online Spending

- Multi-channel : www.ktc.co.th/ushop , print, &

- More than 10,000 merchandises from renowned brands

- Card usage privileges + Forever Rewards redemption choices

KTC Mail Order Privileges

• Forever Reward Points remain our key marketing tool in most promotions Loyalty Rewards

- Dining privileges in > 300 restaurants especially in the tourist destinations

- Promotions in every day spending category eg. Local supermarkets and discount stores

- Expand points redemption in local department stores/ shopping centers- Special privileges at local souvenir shops

Upcountry Privileges

Wholesale

Supermarket

Department

Store

Souvenir

Shop

- KTC brand visibility and usage promotions at consumer fairs - both national and partner level

- High traffic events : , IT , Mobile , Shopping , Auto , Sports , & Hobbies (pets, books, toys, etc)

- Forever Rewards points redemption for further discount

Books Pets Sports Auto

Shopping

Events

Toys

Mobile / IT

Household Appliances

Marketing ProgramPersonal Loan

Q3-4 2016

Free up to 600 baht gift voucherNew approved member

during 1 Sep – 31 Dec 2016

Note :• Free gift voucher for the first 2 cycles only• Registration required via SMS or www.ktc.co.thwithin January 15, 2017

KTC PROUD Off-line Acquisition promotionTo achieve new member target of Year 2016

Voucher 300 bahtIF maintain principal 18,000 baht everyday

for each cycle

GOOGLE SEM

KTC PROUD Online AcquisitionInfluence and create call for action online

Who have needed in cash:Optimize Google search

Via SEM both generic and brand key word

Feb – Dec 16

CustomersSearch

ClickOn the link

Leave message Telesales call back in 2 hrs

(weekday)Name / Mobile / email

Current KTC PROUD member

Maintain cash withdraw

Prevent card switching

Create Long team relationship

• Current member who withdraw and maintain outstanding balance every 2,000 B get 1 right to win the lucky draw • SMS registration is required, Campaign starts 1 June- 30 Sep, 2016

• 1st Prize : Big C voucher 40,000 Baht+ Cash back 60,000 B total 10 prizes• 2nd Prize : Big C voucher 1,000 Baht total 100 prizes•Total 110 prizes, valued 1,100,000 Baht

Less customer burden throughout the year via Mass Activation Program

• Current member who withdraw and maintain outstanding balance every 2,000 B get 1 right to win the lucky draw • SMS registration is required, Campaign starts 1 Oct - 31 Jan, 2017

• 1st Prize : Debt clear 120% : 3 prizes• 2nd Prize : Debt clear 10% : 200 prizes

Less customer burden throughout the year via Mass Activation Program

More chances to wipe out debtswith 3 rounds and More Prizes

Disclaimer: This presentation is intended only for use by Krungthai Card Public Company Limited (KTC). No copy or use of this presentation should occurwithout the permission of KTC. KTC retains all intellectual property interests associated with the presentation. KTC makes no claim, promise, or guaranteeof any kind about the accuracy, completeness, or satisfactoriness of the content of the presentation and expressly disclaims liability for errors andomissions in such content

THANK YOU