Multiplying block matrices works just like multiplication between regular matrices, provided that component matrices have the right sizes.
[tex]\begin{bmatrix}\mathbf I&\mathbf 0\\\mathbf K&\mathbf I\end{bmatrix}\begin{bmatrix}\mathbf W&\mathbf X\\\mathbf Y&\mathbf Z\end{bmatrix} = \begin{bmatrix}\mathbf{IW}+\mathbf{0Y}&\mathbf{IX}+\mathbf{0Z}\\\mathbf{KW}+\mathbf{IY}&\mathbf{KX}+\mathbf{IZ}\end{bmatrix}[/tex]
[tex]\begin{bmatrix}\mathbf I&\mathbf 0\\\mathbf K&\mathbf I\end{bmatrix}\begin{bmatrix}\mathbf W&\mathbf X\\\mathbf Y&\mathbf Z\end{bmatrix} = \begin{bmatrix}\mathbf W+\mathbf 0&\mathbf X+\mathbf 0\\\mathbf{KW}+\mathbf Y&\mathbf{KX}+\mathbf Z\end{bmatrix}[/tex]
[tex]\begin{bmatrix}\mathbf I&\mathbf 0\\\mathbf K&\mathbf I\end{bmatrix}\begin{bmatrix}\mathbf W&\mathbf X\\\mathbf Y&\mathbf Z\end{bmatrix} = \begin{bmatrix}\mathbf W&\mathbf X\\\mathbf{KW}+\mathbf Y&\mathbf{KX}+\mathbf Z\end{bmatrix}[/tex]
(I assume I is the identity matrix and 0 is the zero matrix.)