Message from The Board Of Directors

In 2023, the global economy grew by around 3.2% despite facing prolonged and intensifying geopolitical tensions, supply chain and global trade issues, as well as tight monetary policies from central banks and rising policy interest rates which reduced global liquidity. For the domestic situation, it was a year of challenges due to the prolonged formation of the government. The Thai economy recovered slowly, growing by around 1.9% as exports adjusted downwards and public investment slowed. However, there were supporting factors from continuous strong expansion in private consumption and service exports, coupled with accelerating private investment.

Amidst the uncertain global situation, it was an immense challenge for doing business in global markets. As the Board of Directors, we have set goals, strategies, and business plans to increase production efficiency of subsidiaries and create opportunities for business growth. In the 2023/2024 (Apr 2023 – Mar 2024), the company focused operations on 4 areas as follows:

1. Achieve Organic Growth: The company grew with its core products certified with many important standards, enabling it to comprehensively meet customer needs. Moreover, by exploring internal assets in each business group through increasing production efficiency and reducing costs, the subsidiaries have proposed and implemented action plans.
2. Commit to Research and Development to Innovate New S-Curve Products: To support core businesses and create new future business groups. Highlights of innovative products launched include new products for the Ultra Low Temperature Insulation and Air Ducting system from the thermal insulation business, as well as the newly designed “Flat deck” produced for Japanese automakers, the slide-style “Aeroklas E-Roller lid” truck bed cover, and “E sliding Tray” from the automotive parts and accessories business. These new products have helped the Company expand its customer base.
3. Create Business Synergy in Australia: The company implemented its Synergy plan by establishing a Fitment Centre to facilitate customers being able to install products of all brands under the Australian businesses. This also helps address labor shortages for skilled installers and efficiently control costs. Additionally, an IT system was developed for integrated use across the organization.
4. Set a long-term goal of achieving Net Zero Emissions by 2042 for the subsidiary Aeroflex Co., Ltd., , Aeroflex, is a model company that has laid out concrete plans to work towards the Net Zero Emissions target.

For the operating results in 2023/2024, the company had total revenue from sale of 13,169.7 million baht, increasing 9.0%, and net profit of 1,210.7 million baht, rising 11.9% compared to the previous year.

The thermal insulation business saw sales growth improve both domestically and internationally, especially the continuous growth in the U.S. market driven by demand for premium grade and new products that were well-received by customers. For the automotive parts and accessories business, orders continued coming in from automakers, with export sales increasing. In the 4th quarter, revenue started being recognized from new product orders, while the Australian businesses saw sales rise from the same period last year due to improved market conditions and revenue recognition from acquiring the TJM retail stores from franchisees in Australia. The plastic packaging business saw improved sales growth as the company enhanced production processes and adjusted sales strategies by increasing focus on the low-cost drinking cup packaging segment to offset the slowdown in food container packaging orders. Additionally, the share of profits from investments in associates and joint ventures in the automotive and thermal insulation businesses, both domestic and international, increased.

Based on the operating performance, the Board of Directors approved an interim dividend payment for the period ended September 30, 2023, at 0.12 baht per share, totaling 336 million baht, which was already paid to shareholders on December 8, 2023. The Board also resolved to propose to the 2024 Annual General Meeting of Shareholders to approve an annual dividend of 0.10 baht per share, totaling 280 million baht. For the full year, total dividends of 616 million baht would be paid out, equivalent to a 51.2% payout ratio of net profit.

The Group’s success lies in being an innovation leader, a world-class manufacturer and distributor, for sustainable growth.

Creative Innovation Organization

The company takes great pride in having its innovative “AERO-ROOF” under-roof insulation product nominated for the SET Awards, where it received the Outstanding Innovative Company Award from the Stock Exchange of Thailand and Money & Banking magazine in 2023. This demonstrates the value of innovations that create added value for the Company, and importantly, this is an innovation conceived for better living standards and environmental friendliness.

The company continues to emphasize research and development, focusing on creating innovations and improving work processes in parallel with promoting an organizational culture of innovation.

Global Market

For the thermal insulation business in the U.S., the company was able to expand its customer base further in both the wholesale and project customer groups. In the Japanese market, Aeroflex premium-grade rubber insulation remains in high demand. For the automotive parts and accessories business in Australia, Aeroklas Asia Pacific Group Pty Ltd in Australia recognized revenue from acquiring 5 TJM retail store businesses from franchisees on November 1, 2023. Currently, TJM has a total of 12 retail branches, and will accelerate sales growth at the branches, expand the fleet business, and maximize utilization of the existing network for highest efficiency. Regarding the joint venture investment in South Africa, the Company acknowledges the issues that arose and is taking step-by-step measures to enable the business to continue operating. The current status is that the company has sent a production consultancy team to be stationed in South Africa to oversee, monitor and resolve production issues while increasing production efficiency.

To create Sustainable Growth

The growth of Eastern Polymer Group Public Company Limited adheres to the organization’s vision of growing through creative innovations to develop quality products that benefit society and improve living standards, as well as building a secure business network to support growth in global markets to achieve sustainable growth. The Board of Directors upholds good governance principles in conducting business, supports environmental stewardship, and takes social responsibility. As a result, in the 2023/2024 :

• The company received an “Excellent” 5-star rating for corporate governance in the 2023 Corporate Governance Report (CGR) of Thai Listed Companies survey conducted by the Thai Institute of Directors (IOD).
• The company received certification as a member of the Private Sector Collective Action Coalition Against Corruption (CAC) from the CAC Council.
• The company was selected for the “Sustainable Stock” list or 2023 SET ESG Ratings at the “AA” level by the Stock Exchange of Thailand.
• The company won 2 awards in the Business Excellence category at the SET Awards 2023, namely the Outstanding Innovative Company Award for the Aero-Roof under-roof insulation innovation product, and the Outstanding Investor Relations Award in the group of listed companies with market capitalization exceeding 10,000 million baht but not over 30,000 million baht, organized by the Stock Exchange of Thailand and Money & Banking magazine.

On behalf of the Board of Directors, we would like to thank employees, business partners, customers, shareholders, and supporters in all areas for their excellent support and trust in our business. Please be assured that the company is intent on conducting business with growth based on good governance and sustainable development principles, while considering the interests of all stakeholders as the top priority.