Interaction with Stakeholders — Otbasy Bank

The Bank strives to maintain high-quality, sustainable relationships with key stakeholders and considers their interests when making key decisions and conducting operational activities.

The principles and procedures for interacting with stakeholders are formulated by the Corporate Governance Code and the Sustainable Development Policy.

The Board of Directors adheres to the practice of building an active dialogue with key stakeholders through online tools and personal meetings, and exercises control over information disclosure to stakeholders through the Bank's public reports.

The Bank defines stakeholders as those who can influence its operations or be influenced by its activities. The Bank has approved a Stakeholder Map, which defines the list of key stakeholders and the degree of their influence. The Map allows the Bank to systematize and visualize information about its environment in order to build an appropriate engagement strategy for each stakeholder. Identifying and working with stakeholders serves as a tool that enhances the business's corporate reputation, increases company capitalization, and establishes effective, balanced relationships with all interested parties. This document can be viewed on the Bank's official website hcsbk.kz under the "Sustainable Development / ESG Policies" section.

Key stakeholder groups were selected based on the level of their impact on the Bank and the level of the Bank's impact on these stakeholders.

№	Stakeholders	"Interests / Motives"	Instruments of Influence	Engagement Strategy
1	Sole Shareholder	Respecting and protecting the interests of the Bank's Sole Shareholder, JSC "NIH "Baiterek".	Legislation of the Republic of Kazakhstan, the Charter, and internal documents of the Bank.	Ensuring the exercise of the Sole Shareholder's rights within the framework of corporate governance principles, aimed at effective key decision-making in accordance with the legislation of the Republic of Kazakhstan.
2	Governing Body	General management of the Bank's activities, excluding matters reserved for the exclusive competence of the Sole Shareholder.	Legislation of the Republic of Kazakhstan, the Charter, and internal documents of the Bank.	Determining priority areas of activity and the development strategy of the Bank.
3	Management	Decision-making on any matters regarding the Bank's activities that are not assigned by the legislation of the Republic of Kazakhstan or the Bank's Charter to the competence of the Sole Shareholder or the Board of Directors.	Legislation of the Republic of Kazakhstan, the Charter, and internal documents of the Bank.	Executing decisions of the Sole Shareholder and the Board of Directors of the Bank. Preparing and implementing development plans, as well as handling other matters related to the Bank's operations.
4	Personnel	Labor relations with the employer and the direct fulfillment of obligations under employment contracts.	Labor Code, employment contracts, and internal documents of the Bank.	Exercising job powers and official duties aimed at implementing the tasks and functions of the Bank.
5	Government Authorities	Exercising the legislative and regulatory functions established in the legislation of the Republic of Kazakhstan.	Legislation of the Republic of Kazakhstan.	Monitoring and ensuring compliance with the legislation of the Republic of Kazakhstan.
6	Investors	Generating profit.	Contractual relations within the framework of investment, cooperation, and partnership agreements.	Prioritizing the repayment of principal debt and payment of remuneration on invested funds; eliminating dependence on funding.
7	Financial Institutions	Generating profit.	Contractual relations within the framework of investment, cooperation, and partnership agreements.	Prioritizing the repayment of principal debt and payment of remuneration on invested funds; eliminating dependence on funding.
8	Suppliers	Generating profit and increasing competitiveness.	Contractual relations within the framework of procurement of goods, execution of works, and provision of services.	Adhering to the requirements established for organizing the procurement process.
9	Partners	Commercial interests.	Contractual relations.	Concluding contracts and agreements on cooperation and mutual understanding. Improving and automating business processes. Monitoring the fulfillment of contractual relations.
10	Clients / Consumers	Quality and accessibility of product lines and services in the housing construction savings market.	Client preferences and satisfaction.	Improving the quality and accessibility of products and services in the housing construction savings market.
11	Auditors	Providing financial audit services.	Contractual relations.	Concluding contracts for the provision of audit services. Conducting financial statements audits and external audits.
12	Consulting Organizations	Providing consulting services.	Contractual relations.	Concluding contracts for the provision of consulting services. Improving business processes. Monitoring the fulfillment of contractual relations.
13	General Public	Quality and accessibility of product lines and services in the housing construction savings market.	Public opinion. Appeals to higher-ranking and regulatory authorities, as well as the media.	Conducting reputation audits, public opinion polls, and implementing the communication strategy. Publishing the Bank's financial and non-financial statements. Demonstrating practical commitment to the principles of social responsibility, operational transparency, and sustainable development. Assuming additional social obligations and resolving pressing social issues. Carrying out charitable activities.
14	Public Organizations (NGOs)	Diverse issues within the scope of activities of public and non-governmental organizations.	The Charter, contractual relations.	Complying with the legislation of the Republic of Kazakhstan, supporting local community activities, charity, and environmental care and protection. Ensuring employment and corporate social responsibility.
15	Media	Publishing information and reporting on the Bank's activities.	Publications and information coverage regarding the Bank's activities.	Complying with the legislation of the Republic of Kazakhstan, and developing bilateral and multilateral relations with the media.
16	Competitors	Increasing market share in public deposits, mortgage lending for housing construction and acquisition, and general mortgage lending.	Applying modern technologies, increasing the quality of products and services provided in the financial market, executing active advertising campaigns, and developing and implementing new lines of products and services in the public deposits market.	Strategy to mitigate competitive opposition: • cooperating on terms unattractive to competitors; • increasing the level of personnel loyalty to the Bank; • expanding the Bank's presence across the country; • developing and introducing new product lines and services in the housing construction savings market; • cooperating to find mutually beneficial solutions to tasks.

The process of organizing the Bank's interaction with stakeholders is based on the principle of inclusivity, which implies considering the interests of stakeholders at all stages of the Bank's activity management process and involving stakeholders in discussions on material topics and important issues, potential risks, and boundaries of responsibility.

To provide continuous updates on changes, the Bank utilizes various stakeholder engagement methods and interaction mechanisms, such as information disclosure through open sources (the Bank's official website hcsbk.kz and the Bank's social media networks), satisfaction surveys, feedback mechanisms, etc. Interaction mechanisms include joint programs and projects, the conclusion of memorandums of cooperation, conducting round tables, and publishing information. Interaction covers various areas of the Bank's work, including strategic planning, financial and operational activities, and project management. Each stakeholder, in turn, plays an important role in achieving the Bank's strategic goals.

The Bank implements a comprehensive communication strategy aimed at effective interaction with stakeholders, including the Sole Shareholder, clients, counterparties, and investors, which is designed for a ten-year period. The strategy describes communication methods and specifies concrete events and expected outcomes of the dialogue. The media plan, which is part of the communication strategy, defines quarterly and monthly information dissemination plans, transmission methods, and channels, including informal meetings with the media, and annual events involving clients and other stakeholders of the Bank.

To determine the importance of stakeholders to the Bank, a reputation audit is conducted, which includes a stakeholder survey. As a result, annual client questionnaire results are established, the purpose of which is to collect feedback and identify areas for further improvement. The results obtained influence planning and operational efficiency.

The strategy for the Bank's interaction with each stakeholder, as well as the instruments of influence, are determined by the Bank's structural units independently, depending on the specifics of their activities.

The mechanisms for the Bank to receive questions and/or complaints from stakeholders and the procedure for timely responses to them, including grievance mechanisms and external communication channels, are visually presented on the Bank's official website hcsbk.kz under the "Sustainable Development" / "Corporate Responsibility" section.

The Bank's employees responsible for interacting with stakeholders are designated by the relevant operational documents of the Bank, and their contact details are posted on the Bank's official website hcsbk.kz under the "Sustainable Development" / "ESG Contacts" section.

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