MESSAGE FROM THE BOARD OF DIRECTORS

SCG Packaging Public Company Limited

"Sustainable Growth through Innovative Packaging Solutions to Evolve the Way of Life"
In 2021, the ASEAN and world economies continued to be sluggish due to COVID-19, which impacted how people lived. However, the COVID-19 situation in ASEAN started to rebound, resulting in the demand for consumer goods enjoyed growth as they were necessary items in consumers’ daily lives. Moreover, the global economy saw a sign of recovery, spurring the demands for goods and services. In addition, the production efficacy of industrial sectors improved throughout the supply chain. These factors supported the demand for packaging. Still, concerns such as increasing prices of energy and raw materials and a range of new COVID-19 variants remain serious as they could derail the world's economy.

Amidst these challenges, SCGP managed to follow the strategies to achieve a long-term growth and become a leader in the integrated packaging solutions business in the region. The Company was also entirely conducted in line with the plan to tackle economic fluctuations, while the organic expansion and the merger and partnership (M&P) led to an improved production capability and enabled the penetration to international emerging markets, allowing expansion of SCGP’ customer bases and redefinition of business scope. In 2021, SCGP acquired a stake in Go-Pak UK Limited, a foodservice packaging solutions business in the UK; Duy Tan Plastics Manufacturing Corporation Joint Stock Company, a leading rigid plastic packaging business in Vietnam; and Intan Group, a corrugated containers business in Indonesia. SCGP also entered the healthcare and medical supply market by investing in Deltalab, S.L. in Spain.

As packaging is an essential part of the customer’s supply chain, SCGP aimed to satisfy customer demand and become part of consumers’ daily lives by developing integrated packaging solutions. Innovation, which comes from employees' expertise and cooperation with customers, drives the advancement of solutions, products, and services that will meet the megatrends of the present and future. This is especially true in E-commerce and foodservice businesses today, where high growth is observed.

SCGP also aimed to continuously adjust and improve production and operations using technology, including automation, digitization and AI systems, to help analyze, project, and enhance capability and productivity. The goal was to improve competitiveness and performance efficiency, and manage liquidity in accordance with the business status.

In addition, SCGP emphasized sustainable conduct and development of the business as per the ESG aspects. The Corporate Governance Policy has intensely been enforced in all business units and countries where SCGP operates. The focus was on transparency, accountability, engagement, and communication with all stakeholders. SCGP contributed to society and the environment through essential activities and projects, including a long-term goal in achieving Net Zero by 2050. For this reason, in 2021, SCGP was awarded the Rising Star Sustainability Awards in the Sustainability Excellence category, as a sustainable development operations business; and the Best Deal of the Year Awards in the Business Excellence category, for the excellent and outstanding performance of the IPO offering by the Stock Exchange of Thailand. These meaningful distinctions reflected our pride, determination and hard-working nature in revamping the standards and turbocharging the sustainable growth of Thailand's economy and society in the long run.

SCGP has been growing steadily amidst challenging situations and accumulated a sales revenue of Baht 124,223 million from the previous year, an increase of 34% year-on-year. As a result, SCGP made profit for the year of Baht 8,294 million, an increase of 28% compared to last year. Therefore, the Board of Directors has resolved to propose that the 2022 Annual General Meeting of Shareholders approve the 2021 dividend worth Baht 0.65 per share, Baht 2,790 million in total, or 33.64 percent of the net profit of the consolidated financial statements in accordance with the dividend policy. In this, an interim dividend is worth Baht 0.25 per share, and the final year-end dividend is equal to Baht 0.40 per share.

In 2022, SCGP plans to maintain the leading position as an integrated packaging solutions business by building sustainable growth, expanding productivity, cooperating with partners in strategic areas in the ASEAN region, and penetrating emerging markets in other regions. SCGP plans to utilize a downstream packaging expansion and grow customer bases in numerous industries, especially those related to consumer lifestyles, such as food and beverage, hygiene care products, healthcare and medical products, etc. These industries have potential growth as part of the essentials in a consumer’s daily life. SCGP conducted business with a customer-centric mindset to develop innovative packaging solutions that satisfy the growing demands and evolving consumer behavior. The Company also improved the internal management capability to support business growth while proactively mitigating potential risks that may arise.

Bangkok, January 25, 2022

(Mr. Prasarn Trairatvorakul)

Chairman

(Mr. Wichan Jitpukdee)

Chief Executive Officer

MEMBERS OF SCGP