Mongkol Simaroj

Chairman

The economic situation in Thailand in 2024 grew by 2.5 %, which is lower than expected. This reflects the ongoing recovery of the economy, which has not yet fully rebounded, despite a growth of 1.9 % in 2023. For 2025, growth is projected to be around 2.5-3.0 %, indicating that the Thai economy is still growing at a slower rate compared to other ASEAN member countries. Factors affecting economic growth include both external and internal uncertainties, such as the U.S. trade war policy, the trade deficit with the People's Republic of China, high levels of domestic household debt, declining purchasing power, and tighter lending for home and car purchases. All of these factors affect confidence in the economic system. In addition, the downturn in the capital market and the lack of liquidity remain key challenges for the Thai government in creating measures to stimulate the economy and promote confidence in the private sector to invest, expand, and create jobs, ensuring that the Thai economy can move forward.

Total fuel consumption in Thailand in 2024 was 155.49 million liters per day, an increase of about 2.1 % compared to the previous year. Gasoline consumption remained stable at 31.65 million liters per day, while diesel consumption slightly increased to 66.76 million liters per day. Meanwhile, commercial jet fuel (Jet A1) consumption increased, with an average usage of 16.02 million liters per day, reflecting the continued recovery from the initial estimates made after the COVID-19 outbreak four years ago. Currently, the aviation industry is recovering and growing well. In 2024, the Group had a sales volume of finished oil products of 1,108 million liters, which is close to the 2023 sales volume of 1,090 million liters. This decrease is mainly due to the sale of investments in some subsidiaries to the Sinopec Group, which resulted in the sales of aviation fuel and some service stations not being included in the consolidated financial statements. Including the sales volume from SINOPEC SUSCO Co., Ltd., the Group's oil sales volume in 2024 grew from 1,304 million liters to 1,489 million liters, marking an increase of about 15 % compared to the previous year.

For the operating results in 2024, the Company and its subsidiaries had total revenue of Baht 33,149 million , a slight decrease from Baht 33,706 million in 2023. Net profit was Baht 288 million, a decrease from Baht 1,225 million. The high profit in 2023 was due to an extraordinary gain from the sale of investments in subsidiaries to the Sinopec Group. However, the Company still managed to make a profit in the past year amid many negative factors. In 2024, all 26 SINOPEC joint venture service stations were completely renovated. However, service station sales are still below target due to the small number of service stations and lack of brand awareness. As a result, periodic marketing campaigns were launched to reduce fuel prices and stimulate sales. However, marketing margins dropped significantly due to the government's efforts to ease the burden on consumers during the economic downturn. Consequently, oil retailers faced low gross profit margins, a lack of budget, and minimal incentive to market and expand investments. The Group strongly hopes that, in the future, marketing margins will improve compared to the previous year, enabling business expansion and job creation. For the service stations managed under the ESSO trademark, after the acquisition from the Bangchak Group, all 108 service stations have been transformed into Bangchak service stations. Meanwhile, 130 SUSCO format service stations are still in operation. In 2025, the Group plans to manage and expand service stations for all three brands by approximately 10-20 stations, with a cautious expansion strategy aligned with economic and industrial conditions. The SUSCO Beyond Group, a subsidiaries that distributes BYD electric vehicles, currently operates 10 branches. At the end of 2024, the Company was also entrusted with distributing DENZA electric vehicles, adding another brand. The Company has prepared one distribution center in Bangkok, bringing the total number of vehicle distribution centers to 11. In 2024, the Company achieved total sales of 2,350 vehicles, an increase from 2,063 vehicles in 2023, despite a 26 % contraction in the automotive industry in Thailand due to credit control and the poor economic situation. The Company expects continued growth in electric vehicle sales, especially with the launch of new models in 2025. However, as this is a new business for the Group, management will be cautious, especially during the transition period from internal combustion engine vehicles to electric vehicles, which is marked by high volatility and increasing competition. Additionally, the Company is expanding its electric vehicle rental business and lease business to accommodate new opportunities. The Company hopes that the electric vehicle distribution and rental business will become a core business driving future growth.

In addition to the service station and vehicle dealership businesses, the Company has developed a large retail space under the name "SUSCO SQUARE." Originally, there were only two locations, but this has now expanded to four locations to meet the changing lifestyles of consumers. The Company has partnered with food and beverage outlets, both indoor and Drive-Thru, to increase the proportion of the Non-Oil business. The Company also prioritizes the design of ample and sufficient parking spaces to provide consumers with convenient, quick, and safe access to products and services. It is expected that the fourth SUSCO SQUARE branch at Pinklao will be completed within 2025 and will serve as a model for further expansion of the Non-Oil business. Furthermore, the Company has partnered with allies to install fast-charging stations within service stations to support the growing number of electric vehicles. The Company also emphasizes clean energy by installing solar roofs on the roofs of 44 gas stations and plans to install more in the future, as this saves electricity and is environmentally friendly.

In 2024, the Company was honored to receive two prestigious awards at the SET Awards 2024: the Outstanding CEO Award and the Outstanding Company Performance Award, reflecting the success in managing and developing the organization sustainably.

On behalf of the Board of Directors, I would like to express my sincere gratitude to all stakeholders for the continued support to our businesses and also to executives and employees of our group of Companies who have devoted their efforts for the Companies. We hope that we shall continuously receive such good support from everyone, so that our Group of Companies will be growing constantly with sustainable growth.