56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited Asset-based financing business Thanachart Plus Company Limited is an asset-based financing service provider. The service is given in the form of term loan facility and working capital facility. The security to be used as collateral includes real estates in good location, with potential for commercial development, or securities listed on the SET, which have high liquidity and good fundamentals. On the other hand, the target groups for the service include medium and large-sized enterprises. With Thanachart Group’s experiences, the company has good understanding of customers. It is able to process loan applications in an efficient manner and offer flexible terms and conditions in line with customer needs. Asset Management Business Group 1. NFS Asset Management Company Limited operates asset management business. In this connection, it purchases or takes transfers of non-performing assets from financial institutions of Thanachart Group and other financial institutions. 2. MAX Asset Management Company Limited operates asset management business. In this connection, it purchases or takes transfers of non-performing assets from other financial institutions. 3. TS Asset Management Company Limited operates asset management business. In this connection, it takes transfers and managed non-performing assets, which include non-performing loans as well as property foreclosed, from SCIB and TBANK. Investments Business 1. Thanachart SPV1 Company Limited operates investment business. It was established for the purpose of buying shares of THANI from TBANK, as part of the business restructuring plan. 2. Thanachart SPV2 Company Limited operates investment business. It was established for the purpose of buying shares of 1) Seacon, 2) Ajinomoto, 3) TGL, 4) TTD, 5) SSV, and 6) TMS from TBANK, as part of the business restructuring plan. Other businesses include: 1) Thanachart Group Leasing Company Limited, 2) Thanachart Training and Development Company Limited, 3) Security SCIB Services Company Limited, and 4) Thanachart Management and Service Company Limited, These companies were transferred by TBANK to the Company. They do not operate new businesses. Eventually, they will be dissolved and liquidated. In this connection, the Company holds the shares of these companies through SPV2. Important Changes and Development in the Past 3 Years 2019 Major restructuring of Thanachart Group’s business operations, turning theCompany into a diversified investment holding company that generates stable returns for shareholders in the long term The Company, as TBANK’s parent company, changed the shareholding structure of Thanachart Group’s member companies. In this connection, it sold all its equity stake in TBANK to TMB for the purpose of the merger between TMB and TBANK. Recognizing the potential and strengths of two banks, the Company foresaw that the merger would produce a large commercial bank which almost doubled in size with total assets amounting to almost 2 trillion baht. Importantly, their business structures and expertise would support each other. The new bank which was created from the merger would be a bank whose number of customers increasing to about 10 million. This represented greater market opportunities as a result of the two banks’ combined competitiveness and expertise. In this connection, the Company will become a diversified investment holding company. It invests in companies operating a variety of financial services businesses in which Thanachart Group has expertise. The Company is also a major shareholder of the new bank which is created from the merger. As a result, the Company will earn stable long-term returns on investment. 23
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