MUANGTHAI CAPITAL: Sustainability

Stakeholders and SDGs

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MTC Value Chain

The Company's business operations focus on providing credit services to customers with efficiency. Therefore, stakeholders have been determined based on the value chain, which consists of 5 main processes, namely:

1. Management of funding sources The company has a process for sourcing low-interest funding from multiple financial institutions to adequately support business growth.

2. Credit approval process Loans are assessed through property-based credit assessment methods instead of using customer income or credit bureau data to increase the likelihood of accessing credit sources.

3. Customer managementThere is a policy on the development of industry ethics, including training on procedures for tracking and collecting debts that are correct according to the requirements of relevant agencies. The preparation of the Debt Clinic Project, and the BoT's Fah Som Project to provide customers with financial liquidity and reduce bad debt problems that arise.

4. Debt tracking and collection There is a policy on the development of industry ethics, including training on procedures for tracking and collecting debts that are correct according to the requirements of relevant agencies. The preparation of the Debt Clinic Project, and the BoT's Fah Som Project to provide customers with financial liquidity and reduce bad debt problems that arise.

5. Expansion of credit portfolio There is a process to maintain the existing customer base and increase the new customer base by opening more branches to cover all areas of the country, including upgrading the branch status to support and service customers efficiently.

Stakeholder Engagement

Engaging with stakeholders enables the company to understand their expectations and needs , which helps the company determine issues related to business operations, which is considered one way to drive sustainable development. as well as knowing the impact that the company has on stakeholders. The company has guidelines for managing stakeholders, as follows:

1. Stakeholder identification - The company will consider individuals, groups of people, or agencies that can create an impact or be affected by the organization's operations in various participatory ways, such as dependency, responsibility, and Influence. The company divides important stakeholders into 7 groups as follows:

2. Stakeholder Prioritization - The company prioritizes stakeholders using guidelines for considering their influence and interest in the company's operations. By specifying the stakeholder matrix as follows:

The first 3 groups of stakeholders that the company gives importance to are Customers shareholders/investors/creditors, and Employees/Executives/Board of Directors.

3. Planning and Implementation of Participation with Stakeholders: - The company has established guidelines for creating participation with stakeholders. Including guidelines for sustainability operations to appropriately meet expectations that are different for each stakeholder group. As shown in the table below:

Stake- holders	Approach to Engagement	Fre- quency	Expectations of Stakeholders	Operational Approach / Goals
1. Customers	1. Contact Center 1455 2. Branch Offices 3. Social Media 4. Muangthai Capital Application 4.0 5. Customer Satisfaction Survey 6. Complaint Channels 7. Marketing Activities 8. Company Website 9. E-mail	Every day ______________________ Every month ______________________ No specific schedule	- The fast loan approval process - The approved credit limit is appropriate - Convenient and quick payment options - Reduction in interest rates and fees - Protection of customers' personal information	- Consideration of ESG through-out the loan approval process - Branch expansion to increase service accessibility - Creating a positive customer experience with excellent, inclusive, and equitable service - Respecting customer satisfaction, rights, and personal information - Comprehensive follow-up on complaints
2. Shareholders / Investors / Creditors	1. Annual General Meeting of Shareholders 2. Opportunity Day 3. Communication through the Stock Exchange 4. IR Website 5. IR Contact 6. Complaint Channels	Once a year No specific schedule	- Consistent strong performance - Good corporate governance - A stable, transparent organization with sustainable growth	- Review and adjust strategies to align with the circumstances - Good corporate governance - Tangible and effective risk management
3. Employees / Executives / Board of Directors	1. Monthly Executive Meetings 2. Announcements/Orders 3. MTC University 4. Board Meetings 5. Training and Seminar Sessions 6. Employee Satisfaction Survey 7. Complaint Channels	Every month ______________________ Every quarter ______________________ Every year ______________________ No specific schedule	- A positive working environment - Fair compensation and benefits - Good relationships among colleagues - A balance between work and personal life	- Maintain cleanliness and order of the premises - Foster a strong organizational culture - Adhere to human rights principles - Employee development within the organization
4. Business partners	1. Site Visit 2. Partner Risk Assessment Survey 3. Procurement Policy 4. Company Website 5. E-mail 6. Complaint Channels	Once a year ______________________ No specific schedule	- Collaborative efforts to achieve optimal benefits - Standardized evaluation and selection criteria - Set fair payment terms for partners	- Manage the supply chain with consideration of ESG impacts - Conduct procurement in a fair and transparent manner - Set fair payment terms for partners
5. Business competitors	1. Meetings of the Vehicle Loan Industry Association 2. Personal Loan Club Meetings 3. Meetings for Discussion and Exchange of Ideas on Various Topics	No specific schedule	- Compete fairly - Promote the industry collaboratively - Cooperate with the vehicle/personal loan associations in adhering to regulatory standards	- Collaborate with the vehicle loan industry association to promote the industry's advancement
6. Communities and society	1. Social Operations	Once a year	- Demonstrate responsibility for community health and safety - Consider the social and environmental impacts - Strictly comply with the law	- Foster engagement between the company and the community through social projects - Conduct business with care for society and the environment
7. Regulatory authorities (Bank of Thailand / Office of the Consumer Protection Board / Public Debt Management Policy and Supervision)	1. Meetings/Feedback Sessions 2. Coordination with Authorities 3. Site Visit 4. E-mail	No specific schedule	- Support policies and comply with established regulations appropriately - Transparent management - Improve operations to align with set standards	- Continuously cooperate with regulatory authorities

Sustainable Materiality

Comprising of the following 4 steps:

Identification Review of 2023 sustainability issues. Compare with international sustainable issues. Consider the issues that affect all the stakeholders. Discuss the issues with the relevant stakeholders.
Prioritization Analyze and consider information gathered from discussions with all stakeholders, prioritizing sustainability issues based on their impact on the company and stakeholders.
Validation Summarize the priorities of sustainability issues for the executive committee to consider the accuracy of sustainability issues. For acknowledgement and comments to bring sustainability issues to the public.
Review Review processes and key sustainability data after publishing the report to all stakeholders to receive their opinions and suggestions for further improvement of the report.

Materiality Assessment Result

Governance

Good Corporate Governance and Business Ethics

Innovation Development and Digital Transformation

Risk Management

Data Protection and IT Security

Supply Chain Management

Promotion of Financial Accessibility

Responsible Lending

Social

Financial Literacy

Human Rights

10.

Employee Well-being

11.

Employee Skill Development

12.

Customer Relationship Management

13.

Occupational Health and Safety

14.

Community and Social Development

Environment

15.

Climate Change

16.

Efficient Resource Utilization

17.

Biodiversity

Sustainability Performance 2024

The Company has identified 17 important issues and goals for sustainable development as follows:

Sustainability Issues

Sustainability issues	Stakeholders	Impact level	Impact on Stakeholders	Approach to Address Sustainability Issues	Related Risks	GRI
1. Good Corporate Governance and Business Ethics	Customers Shareholders/Investors/Creditors Employees/Executives/Board of Directors Partners Business Competitors Communities and Society Regulatory Authorities	High	- Operating under good governance principles reduces corruption and builds stakeholder trust - Lack of oversight or non-compliance may lead to a loss of trust and damage to the company's reputation	- Operate transparently and fairly to build investor confidence	Sustainability Risks - Risks from corruption, fraud, or poor corporate governance - Risks from external regulatory requirements	GRI 2-13
2. Innovation Development and Digital Transformation	Customers Employees/Executives/Board of Directors Partners Business Competitors Regulatory Authorities	low	- Enhance competitiveness and adaptability to changes - Meet customer satisfaction - Streamline processes - Failure to adapt may result in loss of market share	- Develop new products and services - Apply technology in workflows and service delivery	Strategic Risks - Risks in product and service development - Risks from innovation and business technology	-
3. Risk Management	Customers Shareholders/Investors/Creditors Employees/Executives/Board of Directors Partners Business Competitors Communities and Society Regulatory Authorities	High	- Achieve goals with plans to manage and reduce the impact of unforeseen events. - Lack of preparedness may affect assets and operational costs. - Loss of stakeholder confidence.	- Identify risks across all dimensions. - Monitor performance quarterly and report to the risk management committee.	Operational Risks - Financial Risks - Strategic Risks - Sustainability Risks - Emerging Risks	GRI 2-12
4. Data Protection and IT System Security	Customers Shareholders/Investors/Creditors Employees/Executives/Board of Directors Partners Regulatory Authorities	High	- Personal data is effectively managed. - Build trust with stakeholders. - Lawsuits result in loss of stakeholder confidence.	- Implement data leakage prevention measures - Enhance cybersecurity threat prevention - Comply with the Personal Data Protection Act (PDPA)	Sustainability Risks - Risks from cybersecurity threats and data breaches	GRI 2-12 GRI 418
5. Supply Chain Management	Employees/Executives/Board of Directors Business Partners	Low	- Prevent disruptions in business operations - Promote risk management among business partners - Risks of unfair procurement and vulnerabilities to corruption	- Conduct comprehensive risk assessments for partners - Assess business partner satisfaction - Collaborate on sustainability development	Sustainability Risks - Cybersecurity threats and data breach risks	GRI 2-6 GRI 306 GRI 406
6. Promoting Financial Accessibility	Customers Employees, Executives, and Board of Directors Community and Society	Med	- Expand opportunities for access to financial services - Reduce financial inequality - Increased reliance on informal lending, resulting in unfair interest rates	- Set a target to expand at least 600 branches per year - Develop the Thai 4.0 application to provide customers with convenient access to financial services	Financial Risks - Risks related to the cost-effectiveness of branch expansion	GRI 203
7. Responsible Lending	Customers Community and Society	Med	- Support sustainable debt relief measures - Ensure customers receive fair services - Lack of support measures for customers facing issues may impact	- Provide assistance to customers facing financial difficulties - Protect customer rights	Financial Risks - Risks arising from an increase in non-performing loans (NPLs)	GRI 2-23
8. Financial Education	Customers Community and Society	Low	- Help customers develop financial discipline - Promote effective debt management - Reduce excessive borrowing - Rising household debt may lead to an increase in crime rates	- Communicate financial management education through various company channels	Financial Risks - Risks from the increase in non-performing loans (NPLs)	GRI 203
9. Human Rights	Customers Shareholders/Investors/Creditors Employees, Executives, and Board of Directors Business Partners	High	- Reduce conflicts that may impact business operations - Minimize human rights violations - Ensure fair employment practices - Prevent lawsuits and legal actions - Protect company reputation	- Establish human rights policies - Monitor and ensure that human rights violations do not occur - Conduct comprehensive human rights risk assessments for business partners	Sustainability Risks - Risks related to human rights violations	GRI 407 GRI 408 GRI 409
10. Employee Well-being	Employees/Executives/ Board of Directors	Med	- Provide a conducive work environment that supports effective performance - Ensure the readiness of personnel and equipment to minimize disruptions in operations - Potential issues affecting both physical and mental health	- Plan personnel and equipment allocation to support branch expansion - Organize activities to maintain cleanliness within the office - Assess employee satisfaction and monitor feedback for improvement	Operational Risks - Risks from a shortage of personnel - Risks related to occupational health and employee safety	GRI 2-6 GRI 306 GRI 406
11. Employee Capacity Development	Employees/Executives/Board of Directors Regulatory Authorities	High	- Promote efficient operations - Reduce issues arising from non-compliance with regulations - Lack of knowledge and understanding of regulations may lead to non-compliance issues	- Provide training to enhance knowledge for employees at all levels - Communicate educational content beyond work operations through internal channels	Operational Risks - Risks from non-compliance with company regulations - Risks from providing inefficient services Sustainability Risks - Risks from external regulatory requirements	GRI 403 GRI 404 GRI 405
12. Customer Relationship Management	Customers Employees/Executives/Board of Directors	High	- Retain existing customers and attract new ones - Gain a competitive advantage in the industry - Inability to maintain the customer base	- Establish a process for hand -ling complaints and monitoring the resolution outcomes - Develop satisfaction surveys and track the results	Operational Risks - Risks from providing inefficient services	GRI 3-3
13. Occupational Health and Safety	Customers Employees/Executives/Board of Directors	High	- Reduce issues related to operational continuity - Prevent disruptions in business operations - Address the shortage of branch staff	- Promote safety through training and education - Implement an accident recording system to collect, monitor, and analyze safety	Operational Risks - Risks from a shortage of personnel - Risks of occupational health and employee safety	GRI 403
14. Community and Social Development	Community and Society	Med	- Improve the well-being of the community - Promote access to healthcare services for the community - Alleviate the burden on parents and enable children to access education - Prevent stagnation in community development	- Implement projects to promote the well-being of the community	Sustainability Risks - Risks from corruption and lack of good governance	GRI 201
15. Climate Change	Customers Investors/Shareholders/Creditors Employees/Executives/Board of Directors	High	- Reduce greenhouse gas emissions from company activities - Potential damage to life and property - Inconvenience for customers in accessing services - Impact on customer income	- Develop a budget for damage mitigation - Prepare and review continuity management plans to align with the situation - Promote environmental awareness and sustainability efforts	Sustainability Risks - Risks from natural disasters - Risks from failing to achieve the organization's greenhouse gas emission reduction targets - Carbon tax risks	GRI 201 GRI 302 GRI 305
16. Resource Efficiency	Employees/Executives/Board of Directors Community and Society	Low	- Help reduce operational costs - Lower greenhouse gas emissions from company activities - Lack of management measures may lead to increased operational costs for the company	- Implement projects to promote the reduction of greenhouse gas emissions in company operations	Sustainability Risks - Risks from failing to achieve the organization's greenhouse gas emission reduction targets - Risks from carbon taxes	GRI 302 GRI 303
17. Biodiver-sity	Customers Community and Society	Low	- Create positive impacts through branch expansion - Reduce issues related to the loss of ecosystems - Failing to set criteria for branch expansion may lead to ecosystem destruction	- Establish criteria for selecting locations for branch expansion that do not impact or harm the ecosystem	Sustainability Risks - Risks from corruption and lack of good governance - Risks from failing to achieve the organization's greenhouse gas emission reduction targets	GRI 304