SMEs Financing amid the Financial Crisis The Case of Thailand KASIKORNBANK PLC. 10 June 2009

SMEs Financing amid the Financial CrisisSMEs Financing amid the Financial Crisis

The Case of ThailandThe Case of Thailand

KASIKORNBANK PLC.

10 June 2009

ContentsContents

Thai SMEs at a GlanceThai SMEs at a Glance Thailand MacroeconomicThailand Macroeconomic SMEs DefinitionSMEs Definition Contribution of SMEsContribution of SMEs

SMEs and International TradeSMEs and International Trade SMEs UnderstandingSMEs Understanding The key to enhance SME growth from KBank The key to enhance SME growth from KBank

Financial Innovation & SolutionFinancial Innovation & Solution Non-Financial Support SMEsNon-Financial Support SMEs

Points for Further ConsiderationPoints for Further Consideration

ContentsContents





Units: %YoY otherwise indicated 2007 2008 2009FGDP Growth 4.9 2.6 -3.5

Private Consumption 1.6 2.5 -1.1Investment 1.3 1.1 -6.1Gov. Budget (% of GDP) -1.5 -0.9 -4.5

Export Growth 17.3 16.8 -16.5Import Growth 9.1 26.4 -19.0

Headline CPI 2.3 5.5 0.5Core CPI 1.1 2.4 1.0

GDP Growth

9.0% 9.2%

5.9%4.4% 4.8%

2.2%

5.3%

7.1%6.3%

4.6% 5.2% 4.9%

2.6%

-3.5%

-10.5%

-1.4%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009F

Thailand Economic OverviewThailand Economic Overview

• Global economic crisis would have significant impact on Thailand export sector.

• Private consumption and investment are also affected by political turmoil in the past few years.

• Thus, Thai economy in 2009 is expected to be subtracted by 3.5%, the first time since 1998.

• However, we expect that Thai economy could gradually recover in the latter of 2009, and will fully recover in 2010.

• There are about 2.4 million SMEs

in number.

• SMEs GDP of 3.21 trillion Baht

accounts for 43.2% of national

GDP

• In 2009, SMEs GDP is likely to be

deducted by 1.4% due to

declining in export as a result of

global crisis.

• Employment of SMEs is more

than 3 times higher than that of

Large Enterprises

Thailand’s GDP Structure

Thailand’s SME GDP Growth

2009F 2010F200820072006

as of 2008

Source: OSMEP

SME Market in ThailandSME Market in Thailand

LEs23%

SMEs77%

Thailand’s Private SectorEmployment Proportion

LEs51.8%

SMEs43.2%

Others5.1%

2 groups of SMEs market: Micro & Small Business and Medium Business

Remark: SMEs Definition from OSMEP (Office of Small and Medium Enterprises Promotion)

Manufacturing >50 - 200 >1.45 - 5.80M

Trading - Retailing >25 - 50 >1.45 - 2.90M

Trading - Wholesaling >15 - 30 >0.87 - 1.74M

Service >50 - 200 >1.45 - 5.80M

# of Employee

FixedAssets(USD)

Manufacturing <= 50 <= 1.45M

Trading - Retailing <= 25 <= 1.45M

Trading - Wholesaling <= 15 <= 0.87M

Service <= 50 <= 1.45M

# of Employee

FixedAssets(USD)

Micro & Small Medium

SME Definition in ThailandSME Definition in Thailand

• SMEs loan accounts for 44% of the total loan

portfolio of KBANK, with the total amount of

335,938 million Baht.

• The No. 1 SMEs market share in Thailand of

25% serving over 250,000 SMEs .

• SME biz div. generates 15,408 million Baht in

term of net total income for KBank in 2008, the

highest profit among 7 customer segments.

KBank Loan Breakdown

Retail19%

Large Corporate

37%SME44%

MediumSize65%

Small & MicroSize35%

as of Apr 09

KBank SME OverviewKBank SME Overview

as of Apr 09

Commercial Credit Customer Breakdown

SME98%

Large Corporate

2%


MediumSize11%

as of Apr 09

Commercial Credit Customer Breakdown

SME98%

Large Corporate

2%


MediumSize11%

by No.

GDP Structure by Economic Activities

Data Source: White paper 2007 from OSMEP

Trading is one of the most important activities for SMEs with contribution at 30%

2.5 2.6 2.7 3.1 3.3 3.3

33.7 34.8 34.5 34.7 35.1 34.9

3.0 3.0 3.1 3.1 3.1 2.916.7 15.2 15.1 14.8 14.3 13.9

32.1 30.9 31.4 31.1 30.4 30.7

3.3 3.2 3.2 3.1 3.2 2.9

0%

20%

40%

60%

80%

100%

2002 2003 2004 2005 2006 2007

Electric, Gas &Water Supply

Service

Trading &Maintenance

Construction

Manufacturing

Mining1.2 1.1 1.2 1.4 1.5 1.5

26.9 28.8 29.1 29.5 30.3 30.7

6.3 6.2 6.3 6.5 6.5 6.3

31.2 30.5 30.1 29.9 29.2 29.1

34.2 33.0 33.0 32.5 32.2 32.2

0.3 0.3 0.3 0.2 0.3 0.2

0%

20%

40%

60%

80%

100%

2002 2003 2004 2005 2006 2007

Electric, Gas &Water Supply

Service

Trading &Maintenance

Construction

Manufacturing

Mining

National GDP Structure SME GDP Structure

• Similar to national GDP structure, manufacturing, services and trading are the most important economic activities for SMEs

• While manufacturing sector is expected to shrink around 7% in 2009• Trading sector is projected to record positive growth in 2009

ContentsContents





International Trade in ThailandInternational Trade in ThailandThai economy is heavily international trade-dependent (SME & LE)

International Trade Dependency (% of GDP)

Exports Imports Total Trade

2004 59.7 58.5 118.2

2005 62.6 67.0 129.6

2006 63.0 63.0 126.0

2007 62.4 57.3 119.8

2008 64.3 65.3 129.6

• Total Ex-Import as a percentage of GDP has continually risen to 129.6% in 2008.• Trade value has risen in 2008 (16%) although Thailand’s GDP growth rate dropped (to

2.5%) as a result of the global economic slowdown

-5

0

5

10

15

20

25

30

2004 2005 2006 2007 2008

GDP Export Import Total Trade

%Growth Rate

16.0%

2.6%

Contribution of SME in International TradeContribution of SME in International Trade

Data Source: White paper 2007 and Survey Report; MOC ‘s Trade Statistics. F: * OSMEP, as of Mar 2009; ** KResearch Forecasts

• 30% of international trade value has been

generated by SMEs, 88.1 bn USD in 2007

Trade Growth 2006 2007 2008 2009F

SME Export Growth 16.5% 20.9% 9.0%* -11.4%*

SME Import Growth 9.4% 0.2% n.a. n.a.

Nat. Export Growth 16.9% 18.6% 15.6% -20 to -17%**

Nat. Import Growth 9.0% 8.7% 27.7% -23 to -19%**

• SME export growth had increased steadily during 2006 to 2007

• SME import growth cooled substantially, in line with national imports value

2007 (Billion)

USD %

SME Exports 45.9 15.6

SME Imports 42.2 14.4

SME Trade Volume 88.1 30.0

National Exports 152.5 51.9

National Imports 141.3 48.1

National Trade Volume 293.8 100.0

Almost 30% of national trade value has been generated by SMEs

Impacts to International TradersImpacts to International Traders• Lower trust among business partners as evidenced by the means of payment, i.e. high advance

payment and open account.• Low bargaining power and lack of guarantee support from intermediary

Method of Payment

Importer Exporter

Large Enterprise

SMEsLarge

EnterpriseSMEs

LC (Letter of Credit) 23% 29% 17% 23%

BC (Bill for Collection) 4% 5% 5% 7%

Advance Payment 10% 40% 38% 10%

Open Account 63% 26% 40% 60%

• Compared to Large Enterprise, SMEs importers are less competitive and it’s getting worse due to recent recession

• Also, SMEs exporters have low bargaining power due to lack of trust among trade partnersData Source: KBANK SME Trade Vol. as of Apr. 2009

Key Concerns from Global Economic CrisisKey Concerns from Global Economic Crisis

Export Declining

Inventory Management

Thai major partners, such as US, EU, and Japan, have severe impacts from global economic crisis. Therefore, declining trend in export is expected.

Volatility of commodity prices from speculators will increase risk of inventory loss and difficulty in production and stock management.

Commodity Price

Commodity prices, fallen due to global economic crisis , will affect Thailand farm income, especially rice, palm, and corn.

Liquidity Shortage

Global financial crisis deteriorates business cash flow. Thus, the access to source of fund for business will be tougher , especially for SME businesses.

Global Economic Crisis


Export Declining




Commodity Price


Liquidity Shortage



4% 7% 3% 4% 4% 4%

25%

5% 6%18%

43%27% 34%

22%5% 9%

6%

13%3%

6%

22%37% 24%

26%41% 28%

27%

20%27%

20%

31% 30%39%

48% 50%59%

42%

62% 64%56%

0%10%20%30%40%50%60%70%80%90%

100%

Domestic (REAL) Indirect Export Export Import

Export Declining The top 3 most export dependent is likely to be severely affected by the current economic downturn particularly exacerbated by their major trade partners’ recession economy, i.e. US and EU

*Definition of Export Dependable: Having high export portion compared to total sales revenue ** SME/ LE

• Textile

• Gems & Jewelry

• Agro-Industry

Most Affected Industries


Export Declining




Commodity Price


Liquidity Shortage



Commodity Price

Zinc and Gold Prices

Livestock Price

Steel PriceKey commodity prices have plunged dramatically due to lower demand as a result of global economic crisis

Q1 2008 Q3 2008

Rice USD 1,080 USD 660-500

Tapioca THB 2.50 / Kg. THB 1.45 / Kg.

Smoked Sheet Rubber THB 90 / Kg. THB 55-58 / Kg.

Palm THB 6.0 / Kg. THB 2.8 / Kg.

Palm Oil THB 36 / Liter THB 17 / Liter

Corn THB 10-12 / Kg. THB 4.8-5.0 / Kg.

Agriculture Prices Fell More Than 21%

This will likely affect farm incomes and profitability of

the related industries.

Remark: FX 1 USD = 31.5 THB


Export Declining




Commodity Price


Liquidity Shortage



Loss from Carrying Inventory

Change in Inventory Index (Q-o-Q)

High risk for industries which have high percentage of inventory / sales

Volatility of commodity prices will increase risk of loss

from carrying inventory and difficulties in production and

stock management

Most Affected Industries

• Real Estate

• Textile

• Gems and Jewelry

• Hardware

• Construction Materials

• Industrial Agriculture

• Food & Beverage

• Pulp & Paper / Printing

* SME/ LE

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Q1/50 Q2/50 Q3/50 Q4/50 Q1/51 Q2/51 Q3/51

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Food & BeverageRubber Products & PlasticMetal ProductsTransportation Equipments

Pulp and PaperNon-Metal ProductsArtificial Metal Products


Export Declining




Commodity Price


Liquidity Shortage



Liquidity Shortage Problem High D/E ratio but low current ratio industries would be affected

Most affected industries from Liquidity Shortage

DE ratio Current ratio Impact

Communication 1.91 0.88 High

Real Estate 1.38 1.05 High

Industrial Agriculture 1.29 0.98 High

Commerce 1.27 0.99 High

Agriculture 1.21 0.83 High

Furniture & Wood 1.16 0.94 High

Financial Institute 1.15 0.84 High

Automotive and Parts 1.16 1.20 Moderate

Hotels and Restaurants 1.12 0.52 Moderate

Plastic 1.11 0.97 Moderate

Transportation 1.10 0.73 Moderate

Hardware 1.09 1.19 Moderate

Textile 1.01 1.04 Moderate

ContentsContents





SME Customer Research (SME Customer Research (Financial NeedFinancial Need))

%%

56

42

35

25

13

11

14

0 20 40 60 80 100

Lower interest rate thanother banks

Approval on credit asdesired

Not complicated documentpreparation process

Faster credit approval

Longer term of paymentthan other banks

Amount of approved credithigher than other banks

Attractive fee

10 years10 years

7 days7 days

20 % more20 % more

1% lower1% lower

Reasons cause bank switching

47

23

19

2

9

0 20 40 60 80 100

Shorter term of payment

Accept to use other products of a bank

Higher value of collateral

the minimum credit limit set by bank

NoneAdditional condition withlower interest or fee

Additional condition with lower interest or fee

Reasons if interest or fee were not lower

44

16

16

12

2

9

0 20 40 60 80 100

Higher credit limit

Long term of payment


Less value of collateral

Less documents required for approval

None

what could make you toswitch bank for Credit?

%%

%%

Longer tenor, Faster Approval and Less Collateral are key needs (excl. price, credit risk)

Common biz organizational

needs for SME

Concerns by

Business Stage

Organizational structure: Involves systematic division of tasks and duties.

Accounting: centered around systematic handling of financial data and inventory management

HR Management: centered around systematic handling of employees: recruitment, training, performance evaluation and motivation

Growth: Business concerns related to capabilities & resources planning to support higher growth

Mature: Maintaining current condition of business while seeking other growth opportunities

Decline: Preventing further decline & seeking alternative choices of business line expansion

SME Customer Research (SME Customer Research (Non-Financial NeedNon-Financial Need))

ContentsContents





Customer Needs and Concerns & Financial Solution

• Sufficient funds for investment and working capital under 4 important factors:

• No or less collateral, • Fast Approval, • Long term repayment and higher

credit limit

• Credit with no collateral (K-Klean Credit)• SLA: fast approval within 3 days and

drawdown within 10 days• Long term loan (K-SME Extend)• High LTV Product Programs (K-Max)• Factoring / Trade finance product

Crisis

• More credit need while less collateral under the crisis

• High LTV Product ( K-Max 150%)• Accept investment paper as Collateral, BE• Require no/less collateral (K-Trade Plus,

K-Privilege Trade Solution, K-Klean)

Customer Needs KBank Solution

• Lower trust among business partners in terms of payment method / term

• Business Insurance• Trade Credit Insurance• Guarantee Company Accepted

• Business partner’s risk information and risk protection tools

• Business rating / credit risk rating

Business As Usual

Financial support SMEsFinancial support SMEs

K-Klean CreditNo collateral required

K-Machine CreditMachinery pledged as collateral


K-Max150% LTV

K-Cheque to CashCheque Discount


K-P/O & Invoice Financing

K-SME Extend10 year credit term

Customer CommunicationCustomer Communication

SpeedySpeedy

LongLong

MoreMore%%

56

42

35

25

13

11

14

0 20 40 60 80 100

Lower interest rate thanother banks

Approval on credit asdesired

Not complicated documentpreparation process


Longer term of paymentthan other banks

Amount of approved credithigher than other banks

Attractive fee

10 years10 years

7 days7 days

20 % more20 % more

1% lower1% lower

Reasons cause bank switching

Customer Needs and Concerns & Non-Financial Solution

Business As Usual

• Traditional non-financial needs such as Organization management, Accounting, HR, Business knowledge for efficient business management

• Training series under K-SME Care Education Program

Crisis

• New market understanding and penetration strategy

• Provide special marketing knowledge, Creative and Innovation via advice workshop under K-SME Care

• Online Business Matching

Customer Needs KBank Solution

• Business knowledge for more effective and efficient business management

• Provide knowledge via seminar and advisory workshop under K-SME Care

• Need Physical premises for discussing business solutions with relevant experts and networking during the economy recessions

• Established K-SME Care Knowledge Center to support SMEs sustainable growth

K Smart SME 3rd issue, Jul 08

K Smart SMEK Smart SME

For SME Micro customers

K Smart SME 2nd issue, Feb 08

K SME Inspried 4th-6th issue: Launch Dec 07, Mar 08 and Jun 08

K SME InspiredK SME Inspired

For SME Small & Medium customers

• Econ Analysis• K SME Analysis• Hit the Point• Financial Tips• Marketing Strategy• New Product• K SME Care• Management• HR• Supply Chain Management• Accounting

K SME InspiredK SME Inspired

For SME Small & Medium customers

Table of Contents

• Society• Get Idea• Technology• Feng shui• Exercise• Health Care• Calendar• Cuisine• Travel • Privileges

Business Lifestyle

K SME Credit & K SME Handbook K SME Credit & K SME Handbook

K SME Care K SME Care “Teach a man to fish, You feed him for a lifetime”“Teach a man to fish, You feed him for a lifetime”

Objective

• Nurture the Thai SMEs to achieve sustainable growth in their businesses by providing extensive forms of both financial & non-financial support and not realizing economic returns from such investments.

Strategy

CapitalProvide Equity Financing by Setting up Venture Capital Fund (Khao Kla) for SMEs

AdviceProvide business consultancy in various topics such as Branding, Lean Management to Thai entrepreneurs who seek to enhance their business productivity level through well-recognized SME development institutions such as OSMED, ISMED, FTPI

ResearchProvide economic and market updates named K-SME Analysis which are tailored made specifically for SMEs and published in SME magazine, newspapers & websites

Education Provide a series of value-added training programs to Thai entrepreneurs to help them develop professional management skill by developing 10-week Management Course for Sustainable Growth in collaboration with leading universities nationwide

Target Audience

• Thai SMEs regardless of their size, industry and main bank status

• Develop cooperative efforts with highly credible and reputable organizations & institutions to carry out corporate social responsibility campaign for SMEs in an innovative and differentiated format

Non-Financial support SMEsNon-Financial support SMEs


AdviceProvide business consultancy in various topic such as Branding, Lean Management to Thai entrepreneurs who seek to enhance their business productivity level through well-recognized SME development institutions such as OSMED, ISMED, FTPI

ResearchProvide economic and market updates named K-SME Analysis which are tailored made specifically for SMEs and published in SME magazine, newspapers & website

Education Provide a series of value-added training program to Thai entrepreneurs to help them develop professional management skill by developing 10-week Management Course for Sustainable Growth in collaboration with leading universities nationwide

K SME CareK SME Care

K-SME Venture Capital under Khao Kla and new VCs.

Customer engagement via Advertorial

KBank

KAsset

VC fund with Others SME

K-SME venture Capital (KVC)

SMESME

Khao Kla Venture Capital Management

Investment

Return

KBank, KAsset support Khao Kla and KVC in funding and business operation e.g. IT, compliance and HR advise

Kha Kla structure fund for supporting SMEs (asset <200 MB and employment <200 people)







Logistics and Supply Chain Management

Amplification of 2007’s KIAsia Logistic/SCM project Detailed SCM/Logistics content via

Workshop/Exhibition/Consulting Clinic

Business Competitive Diagnosis

In-depth consulting workshop for manufacturing and service industry to lead SMEs how to choose the right strategy for the sustainable growth by using BCD

Loyalty Program for existing customers

Accounting Workshop Accounting workshop which simulates a practical tutorial to help SMEs better understand how to better manage their cashflow through accounting S/W package

Business Tax Saving Consulting workshop to help business owners understand

how to leverage tax knowledge to ease their business operations


To strengthen brand positioning Brand Academy Brand Positioning workshop via lecture/Case Study/ Showcase & 1-1 Consulting

Topics of brand Academy are - Inspiration and basic Knowledge - Brand Building Strategy such as

Logo development - Brand positioning - Brand consultant workshop

Non-Financial support SMEs during the crisisNon-Financial support SMEs during the crisis

Brand Success Story

Before After

Customer needs during the crisis K SME Care Solution

To survive from recession Business Advice “Improving business operation during the crisis” Seminar for Printing SMEs

Lean Distribution Management

Lean distribution channel is one of the most important factors for business survival during the economic downturn. This workshop will help SMEs understand how to lean their unnecessary channel.



To find opportunity for new market penetration

Online Marketing – A New tool for digital era

Special Marketing workshop to support SMEs to understand the role of the online marketing channel in the digital era

Design Innovation

Creativity & Innovation concept which will help SMEs understand and successfully launch their innovative products in commercial trade

InterBiz Week SMEs will understand how to penetrate new market focusing on packaging, trade matching including international business trip



To improve operational efficiency


Shindan Project

SMEs, with the help of Shindan – Shi (Analyst), will be able to understand their business problems and find solutions, based on the 5 principles namely General management, Human resource management, Accounting and taxation, Sales and marketing and Supply chain and Logistics.







K-SME Analysis articles

Provide the useful information and insights to help SMEs analyze economic and business situation through published articles posted via different channels such as www.ksmecare.com, Newspapers, Me Magazine, K SME Inspired

The Solutions of Financial Management Pocket Book

A practical financial management guide book that combine real business case studies and lessons learned of how to plan the financial management effectively







Strategy for Differentiation

Smart SMEs / Thinking Innovation

Integrated Marketing Communication

Branding for SMEs

360 Degree Case Study

Business Simulation Game

Analysis Comment

Blue ocean concept is still one of the most popular vote but need more practical cases

Real case study from innovative businessperson is preferable.

Update new marketing concept is helpful but sometimes guest speakers should be more specific on particular business as some concept is too broad.

Top rating of all batch. Clear concept and business case for practice in real world

Good opportunity to learn business in various dimensions

The good practice of making critical business decisions thorough sophisticated business game

Non-Financial support SMEsNon-Financial support SMEsSince 2007 K SME Care has educated more than 4,000 customers, and below are voices of customers.

Knowledge Center Business Advisor Business Network

- Training/Special Seminar

- Experience from successful person

- 1-1 advisory service from experienced consultants

- In-depth workshop

- More connections/ business network from SMEs

- Online Business matching


ContentsContents


SMEs and International TradeSMEs and International Trade SMEs UnderstandingSMEs Understanding The key to enhance SME growth from KBankThe key to enhance SME growth from KBank



Three Key Players to Solve the Problem Different Roles and Actions needed

Mitigate Impacts from Global

Economic Crisis

Bank

International Intermediary

StateAgency

Supporting Solution and Initiative• Customer Need and Concern

• Business As Usual• Recession Economy

• Financial and Non-financial innovation

Measure and Policy: Encourage governments and relevant parties to encourage cross boundary capital flow and international trading

Measure and Policy: Introduce measures to help SMEs and international trading sector i.e. provide export guarantee, credit subsidy program and extra sources of fund

Points for Further ConsiderationSpecific agency and fund for SMEs should be established

• The specific agency for SME finance and trade facilitation may be established to act

as international intermediary among the International Financial Institutions (IFIs), the

Multilateral Development Banks (MDBs) and export credit agencies (ECAs)

• Under ASEAN plus 3 and plus 6 schemes, the group may consider the formation of

regional SME fund to function in SME’s sustainable development

• More closer cooperation and assistance will be expected from IFIs and MDBs and

ECAs in developed countries to the export credit organizations in developing

countries in order to promote effective credit guarantee mechanisms.

1. Conversion Rate(Trial / Aware)

2. Retention Rate(Regular / Trial)

KEY RATIO ANALYSIS

Brand Leverage of Winning Brands looks at brand relationships in a naturally hierarchical order to identify strengths & weaknesses, from generating awareness to inducing ownership and finally to emotive commitment conversion. Marketing attention can be focused at different stages to strengthen brand building.

15

18

34

54

83

9

32

57 20 86

Recommenders

Preferrers

Owner

Considerers

Aware

(recommend the brand to others)

(Those using brand as main)

(Those considering patronizing brand)

(Those currently using the brand)

(brand awareness)

(Brands not consider)

TOM Other Spont. Prompted

15

18

34

54

83

9

32

57 20 86

Recommenders

Main Bank

Considerers

Aware

Non-Considerers


(prefer the brand over competitors)

(brand awareness)


15

18

34

54

83

9

32

57 20 86

Recommenders

Preferrers

Owner

Considerers

Aware


(Those using brand as main)

(Those considering patronizing brand)

(Those currently using the brand)

(brand awareness)

(Brands not consider)


15

18

34

54

83

9

32

57 20 86

Recommenders

Main Bank

Considerers

Aware

Non-Considerers


(prefer the brand over competitors)

(brand awareness)


achieving brand saliency

providing brand relevance

ensuring behavioural

ensuring emotive loyalty

High commitment

Low commitment

achieving brand saliency

ensuring behavioural

ensuring emotive commitment

High commitment

Low commitment

Brand Leverage

Base : All respondents (N=675)Ref : Q66/T66A1, Q71A/T71A1, Q63A-Q63D/T63A-

T63D, Q9A/T9A01, Q9B/T9B02, T9C/T9C03, Q63F/T63A06

46

43

44

63

90

42 23

1

35

Bank

KTB%

KBank%

SCB%

BAY%

TMB%

Recommenders

Preferrers

Main Bank

Owner

Considerers

Aware

Rejectors

UnaidedTOM Aided

21

27

15

44

81

17 48 34

1

UnaidedTOM Aided

4

4

6

23

44

5 29 59

5

Unaided Aided

3

3

4

19

3 28 61

41

4

2

2

10

22

2 67

3

7

16

UnaidedTOM Aided UnaidedTOM Aided

100 99 93 92 85

70%

73%

70%

73%

63%

34%

48%

34%

48%

44%

26%

17%

26%

17%

25%

21%

16%

21%

16%

21%

30%

20%

30%

20%

12%

Conversion rate = Owner/Awarer Retention rate = Main Bank/Owner Word of mouth = Recommender/Owner

19

15

20

55

79

24 26

3

49

BBL%

UnaidedTOM Aided

99

36%

35%

36%

35%

56%

5

Em

otiv

e

Com

mitm

en

tB

eh

avi

or

Com

mitm

en

tB

ran

dS

alie

ncy

Beh

avi

or

Rele

vance

46

43

44

63

90

42 23

1

35

Bank

KTB%

KBank%

SCB%

BAY%

TMB%

Recommenders

Preferrers

Main Bank

Owner

Considerers

Aware

Rejectors

UnaidedTOM Aided

21

27

15

44

81

17 48 34

1

UnaidedTOM Aided

4

4

6

23

44

5 29 59

5

Unaided Aided

3

3

4

19

3 28 61

41

4

2

2

10

22

2 67

3

7

16

UnaidedTOM Aided UnaidedTOM Aided

100 99 93 92 85

70%

73%

70%

73%

63%

34%

48%

34%

48%

44%

26%

17%

26%

17%

25%

21%

16%

21%

16%

21%

30%

20%

30%

20%

12%

Conversion rate = Owner/Awarer Retention rate = Main Bank/Owner Word of mouth = Recommender/Owner

19

15

20

55

79

24 26

3

49

BBL%

UnaidedTOM Aided

99

36%

35%

36%

35%

56%

5

Em

otiv

e

Com

mitm

en

tB

eh

avi

or

Com

mitm

en

tB

ran

dS

alie

ncy

Beh

avi

or

Rele

vance

Bank A Bank B Bank C Bank D Bank E

The Winning Brand We achieve the highest customer emotive commitment, THE LOYALTY.

KBank

Thailand SMEs Market

Thai SME Market Share 2008

KBank is number 1 in Thailand SMEs market with 25% market share

Others, 21%

TMB, 7%

KBank, 25%

BBL, 24%

SCB, 14%KTB, 9%

Financial Product & Service

Non-Financial Supports (K-SME Care Project)

Product Program E-learning Program International Trade Seminar Credit Information Rating Service

Knowledge Center Business Seminar / Workshop Business Competitiveness Diagnosis Business Research & Articles

The Asian Banker Award

Excellence in SME BankingBy The Asian Banker 2006 and 2007

Documents

SMEs Financing amid the Financial Crisis The Case of Thailand KASIKORNBANK PLC. 10 June 2009