Message from Board of Directors

“Guided by the new vision and mission, IRPC Group has set ambitious financial and sustainability goals: EBITDA Baht 35,000 million and GHG emissions 20 per cent below the business-as-usual level by 2030.”

Mr. Kris Imsang
Chairman

Dear Shareholders,

Signs of global economic recovery have emerged since 2021, but uncertainty lingered. At the height of COVID-19 pandemic, no country was spared from its devastating impacts. Damaging effects were felt by ordinary people, and all sectors of the economy, including the manufacturing industries, which came to a halt or had to reduce their activities. Mass vaccination and drastic measures taken in the fight against the coronavirus may have worked initially until the more contagious delta and omicron variants began to spread. In addition to Covid-related problems, companies everywhere had to watch out for risks associated with high global inflation and oil prices that have stayed high and stable following a strong rebound from a low base in 2020. The Dubai crude price averaged USD 69 per barrel in 2021.

Be that as it may, Megatrends move inexorably forward, changing the way people live and do business. Such sweeping transformational forces compel businesses to change course, brings about new rules, regulations and standards. To capitalize on Megatrends, IRPC focuses on strategies to maintain competitiveness while adapting to rapid changes by setting a new vision and mission in anticipation of a new future. IRPC has announced our new vision “To Shape Material and Energy Solutions in Harmony with Life” and the mission “To Deliver with Innovations the Better Attributes and Solutions of Sustainable Material and Energy for the Future.” To ensure sustainable business growth going forward, IRPC has aligned its operations with the United Nations Sustainable Development Goals.

In addition, IRPC has set 2030 quantitative financial and sustainability goals as follows: EBITDA Baht 35,000 million, greenhouse gas emission reduction by 20 per cent from its business plan. To achieve the targets, the company needs to create new revenue streams and raise new businesses’ share in its total income while maintaining the strength of its existing main businesses.

IRPC has established a framework for implementing strategies and business direction, which focuses on Core Uplift based on existing internal strength and expertise to expand into Adjacent Businesses in a different value chain, while also on the lookout for Step Out Businesses to drive the company’s growth, guided by the new vision and mission to transform IRPC into a sustainable material and energy innovation company. Through various operations and projects in 2021, the company has pushed the proportion of specialty products 20 per cent by weight in its product portfolio and expanded into the market to health and personal hygiene businesses, etc.

IRPC was first in the country to develop innovative PP Meltblown pellets, used as raw material for the manufacture of innovative non-woven fabric, capable of filtering out particles, such as PM 2.5 and germs. The company also made an entry to agricultural innovation market to improve the livelihood of Thai farmers with the introduction of ZnO NANO, and investment in Ultra Clean Fuel (UCF) project to meet the government’s new fuel standard: Euro 5-compliant diesel, with commercial production expected in 2024.

Along with the development of human resource management system to improve efficiency, leading to positive corporate culture in line with the company’s new vision and business growth plan through New Organization Agile Human project, as well as adopting digital and technology systems in all of the company’s operations, including Robotic Process Automation (RPA) with Automation Anywhere in financial processes to lay the groundwork for further transformation along the pathway towards IRPC 4.0 under the company’s strategic plan.

“With prudence, astuteness and dedication amid the COVID-19 pandemic, IRPC managed to post net profits of Baht 14,505 million in 2021. As was the case in previous years, IRPC received numerous awards in recognition of its corporate governance accomplishments in terms of sustainability, transparency and accountability.”

Mr. Chawalit Tippawanich
President and Chief Executive Officer

Another important achievement for IRPC is the collaboration with PTT to establish Innopolymed Co., Ltd. to build a non-woven fabric factory through Meltblown process. This project is expected to contribute to the stability and strength of the country’s medical device and supplies manufacturing industry and public health system. This is another milestone that signals IRPC’s readiness to shift its business operations to take on future opportunities and challenges.

In addition, IRPC also cooperated with Navamindradhiraj University in a social enterprise project by co-founding Vajira Lab for Society, the first laboratory center in Thailand and Southeast Asia to provide medical device testing and certification of products, such as face masks, N95 masks, PPE suits, etc.

Amid the COVID-19 pandemic, IRPC stays committed to its business growth and strategic plans to make positive contribution to the society along the pathway towards a sustainable and balanced growth. In solidarity with the rest of the society, IRPC has announced the “We Care by IRPC” project in collaboration with the public sector, PTT Group and our networks of suppliers and customers, to extend a helping hand to get people adversely affected by the coronavirus crisis back on their feet. Among the assistance programs we have provided is the development of field hospital beds made from specialty plastic pellets based on our technology and innovations. The hospital beds were manufactured and donated to field hospitals and waiting centers for COVID patients. The company also donated fuels for use at crematoriums throughout the country, as well as supported restaurant operators affected by lockdown measures while helping vulnerable people cope through “To Our Heart’s Content: One Shop...100 Meals Served” project, etc.

With dedication and determination IRPC weathered the COVID crisis exceptionally well, and in 2021 delivered Baht 26,961 million in EBITDA and Baht 14,505 million in net profits. Thanks to outstanding performance according to its business strategy under its operational sustainability framework emphasizing transparency and accountability, IRPC has been selected as member of Dow Jones Sustainability Indices (DJSI) for the eighth consecutive year.

In 2021, IRPC was recognized for its accomplishments on multiple fronts, receiving various rewards from renowned organizations, such as the Outstanding Human Rights Model Organization Award for three consecutive years (2019-2021), Best Investor Relations Awards and Thailand Sustainability Investment (THSI) for seventh consecutive year at the SET AWARDS 2021, among others. These awards are testament to IRPC’s sustainability business credentials as a good corporate citizen with social responsibility towards all stakeholders, environmental stewardship and corporate governance, instead of merely pursuing maximum profits and delivering good operating results.

IRPC’s Board of Directors, executives and employees would like to thank all shareholders and stakeholders for their support to and confidence in IRPC. We would like to take this opportunity to reaffirm our commitment to performing our duties to the best of our ability and with total dedication to ensure sustainable business growth, guided by corporate governance principles, as well as to deliver maximum benefits in the best interests of all shareholders and stakeholders, while creating business and social value on a pathway towards a sustainable future.

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