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	Annually / Quarterly ______________________ 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 ______________________ Quarterly ______________________ Annually ______________________ 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. Vendors	1. Site Visit 2. Vendor Risk Assessment Survey 3. Procurement Policy 4. Website Company 5. E-mail 6. Complaint Channels	Annually ______________________ No specific schedule	- Collaborative efforts to achieve optimal benefits - Standardized evaluation and selection criteria - Set fair payment terms for Vendors	- Manage the supply chain with consideration of ESG impacts - Conduct procurement in a fair and transparent manner - Set fair payment terms for Vendors
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

In 2025, the Company adopted a Double Materiality approach to assess key sustainability issues, considering both the financial impacts on the Company (Financial Materiality) and the broader environmental and social impacts (Impact Materiality).

Integrating these two perspectives enables the Company to establish a comprehensive framework for defining its sustainability strategy. This approach supports a balanced focus between environmental and social responsibility and the creation of long-term business value, ensuring fair and transparent consideration for all stakeholder groups.

Impact Materiality

This assessment considers the impacts of the Company’s business operations on the environment and society across the value chain. It covers activities ranging from financial service delivery and organizational management to impacts on customers and communities, with a focus on identifying and evaluating both positive and negative impacts in order to create value for society and the environment.

Financial Materiality

This assessment considers how sustainability issues may affect the Company’s financial performance and enterprise value. It helps identify financially material sustainability topics and their relevance to stakeholders, including potential opportunities and risks that may impact revenue, financial costs, and the Company’s ability to access sources of capital.

Materiality Assessment Process

The Company conducts a Materiality Assessment in accordance with the Double Materiality approach to identify key sustainability issues through the following process.

1. Identification of Sustainability Issues

The Company identifies key sustainability issues by reviewing national and global sustainability trends and benchmarking against industry peers, in order to determine issues relevant to its business context.

International reporting standards, such as GRI and IFRS
Relevant laws and regulations, such as PDPA
Issues relevant to the microfinance sector
Expectations and concerns of stakeholders

2. Double Materiality Assessment

1. Impact Materiality

Assess environmental & social impacts from business, considering:

Scale and scope of the impacts
Severity and irremediability of the impacts
Likelihood of occurrence

2. Financial Materiality

Assess potential impacts on the Company’s financial position and performance, considering:

Financial magnitude of potential gains or losses
Likelihood of occurrence
Time horizon of the impacts: short-term (<1 year), medium-term (1–5 years), and long-term (>5 years)

3. Prioritization of Material Issues

The Company prioritizes sustainability issues based on the results of the Double Materiality assessment and develops a materiality matrix to reflect the significance of impacts across both dimensions.

4. Review of Sustainability Issues

The assessment results are reviewed and approved by the Sustainability Management Committee and the Board to ensure alignment with the Company’s strategy and stakeholder expectations.

Prioritization of Material Sustainability Issues

Sustainability Issues

Sustainability issues	Stakeholders	Impact level	Impact on Stakeholders	Approach to Address Sustainability Issues	Related Risks	SDGs	GRI
1. Good Corporate Governance and Business Ethics Good corporate governance based on transparency, accountability, and verifiability	Medium	High	Positive impacts 1. Promote ethics and transparency in business operations. 2. Reduce stakeholders’ exposure to corruption or abuse of power. Negative impacts 1. May cause harm to society and stakeholders through unfair practices or rights violations.	Positive impacts 1. Support prudent decision-making and strengthen financial confidence. Negative impacts 1. May result in fines, penalties, and financial losses. 2. May affect reputation, customer confidence, and long-term growth.	Transparent disclosure of operational performance	100%	100%
2. Digital Innovation and Transformation Organizational development through digital technology to enhance efficiency and customer access	Medium	Medium	Positive impacts 1. Reduce environmental impacts from travel and resource use through digital services. 2. Expand access to funding sources. Negative impacts 1. May create inequality in access to services.	Positive impacts 1. Improve operational efficiency and service speed. 2. Opportunities to develop new products & enhance competitiveness. Negative impacts 1. High costs for system development and maintenance. 2. Cybersecurity risks may disrupt operations and affect customer confidence.	Number of application users	Increase 25%	Increase 26.71%
3. Risk Management Systematic risk management across all dimensions to strengthen business stability and minimize impacts on stakeholders.	Medium	High	Positive impacts 1. Mitigate the risk on customers from over indebtedness. 2. Strengthen preparedness for climate-related risks and the transition to a low-carbon economy. Negative impacts 1. May affect customers’ well-being and economic stability. 2. Climate transition risks may affect the ability of certain customer groups to their business operations.	Positive impacts 1. Reduce earnings volatility and strengthen financial stability. 2. Enhance investor and creditor confidence through comprehensive risk management. Negative impacts 1. May affect operating costs and the Company’s profitability. 2. Costs may increase due to environmental regulations and the inability to achieve the Company’s GHG reduction targets.	Risk management covering all dimensions	100%	100%
4. Data Protection and IT System Security Preventing unauthorized access to data and protecting customers’ personal data.	Medium	Medium	Positive impacts 1. Protect customers’ personal data and privacy rights. Negative impacts 1. May affect public trust and stakeholder confidence.	Positive impacts 1. Reduce financial losses from cyber incidents and maintain customer confidence. Negative impacts 1. Increased costs related to technology investment and regulatory compliance.	Number of IT security incidents	0 incidents	0 incidents
5. Supply Chain Management Managing the supply chain responsibly and promoting ESG standards among Vendors.	Low	Medium	Positive impacts 1. Promote responsible business practices through sustainable procurement. Negative impacts 1. Potential risks from Vendors during the transition period if they are unable to comply with required standards.	Positive impacts 1. Enhance procurement efficiency and mitigate ESG-related risks. Negative impacts 1. Additional costs and resources may be required for Vendors monitoring and ESG compliance verification.	Key Vendors assessed for risk	100%	100%
6. Promoting Financial Accessibility Enhancing access to financial services to strengthen the grassroots economy.	Medium	Medium	Positive impacts 1. Stimulate economic growth at the community level, support livelihoods, and generate income. 2. Reduce barriers faced by vulnerable groups in accessing financial services. Negative impacts 1. May contribute to household debt-related risks.	Positive impacts 1. Expand the customer base and support growth in the loan portfolio. Negative impacts 1. Increase credit risk. 2. Lead to higher operating costs.	Outstanding loan balance	Increase 10%	Increase 11.56%
7. Responsible Lending Integrating ESG factors into the lending process to prevent over-indebtedness and maintain portfolio stability.	Medium	High	Positive impacts 1. Reduce the risk of over indebtedness. 2. Reduce the likelihood of loans being used for harmful activities. Negative impacts 1. Easy credit access may raise over-indebtedness risk. 2. May lead to complaints and social harm.	Positive impacts 1. Reduce NPL/ECL risk and maintain portfolio quality. Negative impacts 1. Credit assessment costs and workload may increase. 2. Reputational and legal risks may increase.	Number of complaints related to Market Conduct non-compliance	0 cases	0 cases
8. Financial Education Promoting financial literacy to enhance financial capability and reduce household debt risks.	Low	Low	Positive impacts 1. Promote financial resilience and reduce over-indebtedness risks. 2. Support sustainable community economic development. Negative impacts 1. May create inequality in access to funding sources. 2. Unclear communication may lead to customer misunderstanding.	Positive impacts 1. Improve customers’ financial management and support long-term loan portfolio quality. Negative impacts 1. Requires continuous resources for content and activity development.	Total followers across all channels	At least 400k	607.6k
9. Human Rights Respecting and protecting human rights while managing risks throughout the value chain.	Medium	Medium	Positive impacts 1. Support a safe, fair, and inclusive working environment. 2. Reduce the risk of human rights violations affecting employees and communities. Negative impacts 1. Human rights violations may lead to complaints, conflicts, and broader social impacts.	Positive impacts 1. Reduce reputational and legal risks related to human rights violations. Negative impacts 1. Costs and resources for monitoring, audits, and compliance with human rights standards may increase.	Number of human rights violation incidents	0 incidents	0 incidents
10. Employee Well-being Enhancing employee well-being through fair and safe working conditions.	Medium	Low	Positive impacts 1. Enhance employees’ quality of work life and confidence in the organization. 2. Improve employee welfare and well-being. Negative impacts 1. May affect service quality and fair treatment toward customers.	Positive impacts 1. Improve productivity, strengthen employee engagement, and reduce long-term turnover. Negative impacts 1. Costs related to welfare, recruitment, and employee well-being programs may increase.	Employee satisfaction score	At least 80%	87.03%
11. Employee Capacity Development Enhancing employee capabilities to improve organizational efficiency and service.	Low	Low	Positive impacts 1. Promote employees’ career growth and job stability. 2. Enhance workforce capabilities and service quality. Negative impacts 1. Service errors may occur and affect customers.	Positive impacts 1. Improve operational efficiency and strengthen the Company’s competitiveness. Negative impacts 1. Costs and resources for employee training and development may increase.	Average employee training hours	At least 6 hours per person per year	14.68 hours per person per year
12. Customer Relationship Management Managing customer relationships to build long-term trust.	Medium	Medium	Positive impacts 1. Strengthen customer trust and engagement while improving financial knowledge and quality of life. Negative impacts 1. Improper complaint handling may affect overall trust.	Positive impacts 1. Maintain the customer base and enhance customer satisfaction. 2. Reduce reputational and legal risks. Negative impacts 1. Costs related to system development and service quality improvement may increase.	Customer satisfaction score	At least 80%	93.78%
13. Occupational Health and Safety Promoting a safe working environment in accordance with established standards.	Low	Low	Positive impacts 1. Reduce workplace accidents and injuries while fostering a safety-conscious and responsible culture. Negative impacts 1. May affect the health of employees and related parties.	Positive impacts 1. Reduce the risk of operational disruption. Negative impacts 1. Costs related to investment in safety measures may increase. 2. Reputational and legal costs may increase.	Number of lost-time accident cases	0 cases	51 cases
14. Customer Relationship Management Developing communities and society to grow together sustainably.	Low	Low	Positive impacts 1. Improve quality of life and expand opportunities for local communities. Negative impacts 1. If project design does not align with actual needs, outcomes may not meet community and social expectations.	Positive impacts 1. Enhance trust and strengthen the Company’s reputation. 2. Strengthen engagement with communities and local stakeholders. Negative impacts 1. Costs and resources required for project implementation may increase.	Number of project beneficiaries	At least 50,000 people	31,837 people
15. Climate Change Managing risks from climate change and adapting to environmental changes.	Medium	Medium	Positive impacts 1. Participate in reducing global warming, Contribute to mitigating the effects of climate change. 2. Enhance community welfare and customer well-being in the long run. Negative impacts 1. Possible impact on livelihoods and income from changes in customer demand.	Positive impacts 1. Enhance the organization’s position in the financial sector by contributing to climate change mitigation. 2. Provide opportunities for investment in alignment with ESG principles. Negative impacts 1. Adaptation costs 2. Credit portfolio risk during transitions.	CO2 emissions	Decrease by 10%	Decrease by 12.30%
16. Resource Efficiency Utilizing resources efficiently and minimizing negative environmental impacts.	Medium	Medium	Positive impacts 1. Promote efficient use of resources, reduce waste, and improve the organization’s environmental performance. Negative impacts 1. Risk of potential operational disruption during the transition period, affecting resources and operational performance.	Positive impacts 1. Reduce costs related to energy and resource use, improving operational efficiency. Negative impacts 1. Increase complexity in processes and challenges during the improvement stages.	Carbon Emission Intensity	Decrease by 20%	Decrease by 26.22%
17. Biodiversity Managing the impact of business diversity and maintaining customer trust.	Low	Low	Positive impacts 1. Reduce loan use for activities harming ecosystems. 2. Consider ecological impact in branch location selection. Negative impacts 1. May impact long-term community well-being and stability.	Positive impacts 1. Reduce reputational risks from associations with environmentally harmful activities or areas. Negative impacts 1. May limit business opportunities if expansion is avoided in ecologically sensitive areas.	Number of branches impacting the ecosystem	0 branches	0 branches

Management Approach for Material Issues

Integration of ESG Factors in Credit Analysis

3. Risk Management
7. Responsible Lending

MTC integrates ESG factors into the credit approval process through the ESMS to screen, classify risks, define mitigation measures, and monitor throughout the contract lifecycle. This approach avoids activities that negatively impact communities and the environment. It enhances credit portfolio quality, reduces systemic risk, and supports customers' livelihoods in alignment with their communities driving long-term organizational sustainability and improved quality of life in service areas.

Climate Change

15. Climate Change
16. Resource Efficiency

MTC targets Net Zero by 2050 through reducing greenhouse gas emissions, improving energy efficiency, utilizing renewable energy, and managing resources effectively, while embedding environmental awareness across the organization.

The Company integrates both physical and transition climate risks into enterprise risk management to inform strategic planning, build organizational resilience, and maintain long-term business stability.

Customer Personal Data Protection and Information Security

4. Information Security and IT System Protection

MTC manages data in accordance with a personal data protection framework compliant with applicable laws, with an appointed DPO overseeing governance systematically. Data security measures cover access control, unauthorized use prevention, cyber incident management, and breach notification as required by law. Employee awareness programs and regular effectiveness reviews are conducted to ensure transparent, standards-compliant data management that builds trust in business operations.

Product Presentation and Sales Conduct

3. Risk Management
12. Customer Relationship Management

MTC operates its lending business responsibly in accordance with Market Conduct principles, ensuring customers receive accurate and appropriate information to support fair and transparent decision-making.

The Company systematically manages customer service across the full cycle from product development, sales, and communication to complaint handling while monitoring satisfaction to improve processes, enhance experiences, and build long-term customer relationships.

Ethical Business Conduct

1. Good Corporate Governance and Business Ethics

MTC upholds good corporate governance and conducts business in accordance with ethical principles, with transparency and fairness toward all stakeholders under a governance framework aligned with relevant laws and standards.

The Company prioritizes anti-corruption, conflict of interest management, internal controls, and whistleblowing mechanisms, while cultivating an ethical culture to build trust and support sustainable growth.