Management Discussion and Analysis for the Year Ended December 31, 2024

Enclosed are the Audited Financial Statements for the year ended December 31, 2024, and Audited Report by the Certified Public Accountant, with the explanation of the causes affecting the operating results to vary more than 20% from those of the same period of the preceding year, which can be summarized as follows:

The Company’s Financial Statements

In 2024, the Company had a sales volume of 1,097.529 million litres, an increase of 163.007 million litres, or 17.44% from the same period of 2023, the total revenue of Baht 30,135.57 million, an increase of Baht 2,649.98 million, or 9.64%, from the same period of 2023. The significant causes of the increase in the sales revenue were the increase in the sales volumes from domestic wholesales oil sales and oil fuel export to other countries, and the increase in the other income from the Company reversed the advance income-marketing support fee account to other income, which has also resulted in an increase in distribution costs, while the decrease in the gain on sale investments, due to in the 2023, the Company had the gain on sale investments in subsidiaries amount of Baht 1,135.36 million, which the company does not have such items in the same period of 2024. The Company had a net profit of Baht 394.04 million a decrease of Baht 778.96 million, or 66.41% comparing with the net profit of Baht 1,173.00 million, of the same period of 2023, due to the decrease in the gain on sale investments in subsidiaries. Excluding the net profit from the sale of investments in subsidiaries, amounting Baht 922.26 million in 2023, the company’s net profit from operations increased by Baht 143.30 million, or 57.15%

The Consolidated Financial Statements

In 2024, the Company and its subsidiaries had a total sales volume of 1,108.895 million litres, an increase of 19.278 million litres, or 1.77%, from the same period of 2023, due to the Company and its subsidiaries had the increase in the sales volumes from domestic wholesales oil sales and oil fuel export to other countries, while the decrease in sales volume of jet fuel and oil fuel through service stations, due to the Company and its subsidiaries did not include sales volume of jet fuel and oil fuel through service stations of SINOPEC SUSCO Co., Ltd. that was a business in a subsidiary which the currently is a joint venture. Whereas, Susco Beyond Group, the subsidiaries had a sales from BYD electric vehicles number of 2,350 vehicles, had increased from the same period of 2023, number of 287 vehicles, or 13.91%, the Company and its subsidiaries had a total revenue was Baht 33,149.61 million, a decrease of Baht 557.17 million, or 1.65%, from the same period of 2023, due to the Company and its subsidiaries had a decrease in the gain on sale investments in subsidiaries of Baht 1,121.93 million, while, Susco Beyond Group, the subsidiaries had a sales revenue from BYD electric vehicles increased from the increase the number of sales BYD electric vehicles, the increase in the oil fuel sales revenue, and the increase in the other income from the Company reversed the advance income-marketing support fee account to other income, which has also resulted in an increase in distribution costs. The Company and its subsidiaries had a net profit of Baht 291.72 million, a decrease of Baht 936.80 million, or 76.25%, comparing with the net profit of Baht 1,228.52 million of the same period of 2023, due to the decrease a gain on sale investments in subsidiaries. Excluding the net profit from the sale of investments in subsidiaries, amount to Baht 908.83 million in 2023, the company’s net profit from operations decreased by Baht 27.97 million, or 8.75%

As of December 31, 2024, the Company and its subsidiaries had total assets of Baht 10,690.40 million, compared to December 31, 2023, which had 9,831.39 million baht, an increase of Baht 859.01 million, or 8.74%. due to an increase in the non-current assets of Baht 638.47 million, resulting from increased rights of use from new lease agreements, and the current assets increase by Baht 220.53 million, or 7.06%, due to an increase in trade receivables and other current receivables from the electric vehicle trade receivables of BYD, due to the increased number of sales electric vehicles, and the increase in cash and cash equivalents from the sale of investments in listed securities and debt funds.

As of December 31, 2024, the company and its subsidiaries had total liabilities of Baht 6,167.45 million. Compared to December 31, 2023, which had Baht 5,256.12 million, an increase of Baht 911.33 million, or 17.34%, due to the increase in the non-current liabilities of Baht 514.94 million, or 25.53%, from the increased lease liabilities from new lease agreements and an increase a long-term borrowing from financial institutions for operational purposes, and the current liabilities an increase by Baht 396.39 million, or 12.24%, and overdrafts and short-term borrowing increase of Baht 267.40 million, or 29.24%, due to the promissory notes borrowing to pay inventory, while, trade payables and other current payables decreased by Baht 112.60 million, or a decrease of 5.70%.

When considering various financial ratios related to liquidity, the company and its subsidiaries have a liquidity ratio of 0.92, an accounts receivable turnover ratio of 49.27, an inventory turnover ratio of 28.45, a debt-to-equity ratio of 1.36, and an interest-bearing debt-to-equity ratio of 0.80. These figures confirm that the company and its subsidiaries still maintain a high and sufficient level of liquidity to support current operations and future expansion.

The perspectives of executives on trend and strategies

In summary, in 2024, the impact on the operations of the Company and its subsidiaries are as follows:
1. The oil business in 2024, compared to 2023, an increase in sales volume due to higher domestic wholesale and increased exports to foreign countries. It is expected that sales will continue to grow in 2025 with the expansion of service stations and further growth in oil exports.
2. In the early months of 2024, the overall car market slowed down due to stricter lending policies. However, in Q4 of 2024, BYD launched the DENZA and new BYD models, which met consumer demands with competitive pricing and appealing designs. This led to an increase in electric vehicle sales, with deliveries continuing from the end of 2024 into early 2025. Furthermore, BYD plans to gradually introduce new models to capture additional new consumer segments. As a result, it is expected that the sales of BYD and DENZA EVs will continue to grow strongly in 2025.
3. The company's Non-oil business has been accelerating the expansion of rental space and upgrading SUSCO service stations to be more modern. In addition, two more SUSCO Square locations will be opened, with rental income expected to increase by at least 20% by mid 2025.
4. In other businesses, the company has installed 10 more EV chargers at service stations and aims to expand partnerships to increase charging points, with a goal of reaching 100 stations within 2 years. Additionally, the company is promoting electric vehicle (EV) usage among Grab drivers through the Grab EV leasing program, “Drive and Pay scheme.” In 2024, the company has already delivered 90 EVs to drivers and plans to continue delivering EVs in 2025, with a target of 500 vehicles within 3 years. This business is expected to contribute to the company's continuous revenue growth.