1. Company Investment

• Investment value in 1Q26 rose substantially, primarily driven by equity investments. Which business sectors did the Company increase its holdings in? What are its future investment plans regarding new areas of interest?

  According to the Company’s investment plan, the emphasis remains on the banking and insurance sectors. The Company plans to build an investment portfolio of approximately 8 billion baht this year. Over the past four to five months, investments have progressed according to plan. The Company prioritizes businesses where it possesses deep knowledge and expertise—namely banking and insurance. Concurrently, it is exploring investments in businesses within banking and insurance ecosystems. Any additional investments must align with the established framework targeting strong business potential, solid operational performance, and high returns.

• What was the rationale behind investing in TIPH? Is there significant overlap between the insurance portfolios of TIPH and TNI?

  The investment decision was based on the expertise of TIPH’s management team. It was recognized that TIPH was highly knowledgeable and specialized. Regarding the insurance portfolios, there is no overlap; TIPH focuses primarily on corporate accounts, while TNI targets retail customers. Importantly, TIPH has demonstrated excellent business operations with strong risk management and controls. Despite facing two to three rounds of crises over the past few years, the company managed to maintain solid performance and offer a high dividend yield of around 6–7% per annum.

2. The Company has increased its dividend payouts significantly and at a faster pace than in the past. Given the strong Q1 profit growth, is there an opportunity to increase dividends beyond the historical annual increment of 0.10 baht? The current dividend yield is around 6%, slightly lower than the banking sector's yield of 7–8%.

The Company’s strategic direction focuses on delivering consistent returns to shareholders. Provided that Thanachart Group meets or surpasses its targets, the Company will be able to distribute these returns to shareholders. However, the exact scale of any additional payout will be evaluated during Q3 and Q4 of the year.

3. What is the impact of the Middle East war on Thanachart Group’s business operations?

In early March 2026, following the outbreak of the war, the Company convened a workshop with all its subsidiaries to assess potential impact across various scenarios based on the duration of the war. While the immediate impact was initially confined to rising energy costs, the scope of the impact has since expanded to include raw material shortages in certain manufacturing sectors. The Company has categorized the impact into two primary scenarios, focusing on energy costs at US$100/barrel/year and US$120/barrel/year. With Brent crude prices currently fluctuating between US$100 and US$105/barrel, the observable impact lies in consumer purchasing power. Although customers and the general public retain purchasing capacity, they have become noticeably more cautious. This behavioral shift could eventually pressure sales volumes. On the cost side, THANI is closely monitoring asset quality, particularly among SME transport clients who may struggle to pass on rising fuel costs. THANI is proactively engaging with these high-risk accounts to track their performance and restructure debt where necessary. Secured loan segments are also being monitored under close communication frameworks. Regarding operating expenses in the insurance sector, the focus is on claims management costs. For automobile insurance, this involves spare parts and repair labor. Current data indicates that most spare parts are sourced from China. As a result, this specific cost component has remained stable. However, an anticipated headwind is the rising repair labor costs due to wage adjustment demands. The insurance business is actively adjusting its operational workflows to optimize claims management. As a result, cost impacts remain manageable. On the other hand, the investment portfolio faces ongoing volatility. However, the investment team continues to monitor the situation closely and identifies opportunities to achieve targeted investment yields. In summary, if oil prices stabilize around US$100/barrel, the overall impact will remain relatively limited, and all group companies are expected to meet their respective performance targets.

In Scenario 2 in which oil prices rise to US$120/barrel and raw material shortages occur in certain sectors, most member companies of Thanachart Group are not directly impacted. However, as the situation intensifies, the impact mentioned in the first scenario will escalate, causing operating results to fall below planned targets. Nonetheless, the Company remains confident that performance will remain above prior-year levels. The Company continues to actively monitor the situation and its evolving impact on Thanachart Group's businesses.

4. Did TNI’s 100% quarter-on-quarter profit growth stem from any extraordinary items?

TNI’s Q1 2026 sales grew strongly, in line with its full-year target of 13%. This performance was further supported by effective cost controls in claims management, which reduced overall costs by approximately 5%. Additionally, following the Hat Yai floods in 4Q25, substantial loss provisions were set aside, fully impacting that quarter's financial statements. Moving into 1Q26, actual incurred losses proved manageable and lower than provisioned. Consequently, approximately 100 million baht in provisions was reversed. Flood-related claim settlements are now largely finalized, though a few customers have yet to bring in their vehicles for repairs. However, these outstanding cases are already covered by the existing provisions.

5. What is the outlook for TNI and THANI in Q2 and Q3 2026?

TNI has delivered strong operating results and maintains a positive trajectory heading into Q2 and Q3. Barring any unprecedented external headwinds, TNI is expected to meet its established performance targets.

THANI is maintaining a cautious, watchful stance. With respect to new lending, the company is placing heavy emphasis on stringent credit quality control. During the first two months, THANI aggressively expanded its lending activity to grow its loan portfolio. However, credit extensions were deliberately curbed, following the outbreak of the war. Consequently, asset quality has steadily improved, with the NPL ratio remaining low at approximately 2% and the coverage ratio rising to a healthy level of around 160%. Financial performance for Q2 and Q3 is projected to remain in line with planned targets.

6. What factors caused 1Q26 provisions to be so low at just 28 million baht? What is the trend for the remainder of the year, given the impact of rising oil prices?

The low provisions were mainly attributable to THANI, which managed its risk efficiently throughout 2025 through systematic debt restructuring, effective receivable collection, and stringent risk control. Previously, repossessed cars in inventory peaked at around 1,000 vehicles. However, the inventory has now been managed back down to a normal level of approximately 300 vehicles.

Concurrently, 1Q26 saw a 71 million baht release resulting from the reversal of Expected Credit Losses (ECL) on investments. This was primarily related to equity investments in Thai Airways, as the stock resumed trading on the Stock Exchange of Thailand since early this year. Consequently, the provisions previously set aside for this investment were released. Moving forward, this investment will be marked-to-market based on current market prices.