Smart Materials & Energy for Transforming Life
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PLUS Smart Materials & Energy for Transforming Life 2020 Annual Registration Statement / Annual Report (56-1 One Report) 348 2020 Annual Registration Statement/ IRPC Public Company Limited Annual Report (56-1 One Report) IN NS SN N NTEGRA PFRMN N PETROCHEMICAL INNVAN CO N SA RSNST F STY INTEGRIT ES TS ST I NAL NS R ST NTED OPERATION N P PROS N FN ONATION C CONNS CORPORA S SNSTY NT D DO NS VAL CREAN TOGETHER NNVAN TION N N BIS OF N SNSS A ACTIVEL SLVE PROBLEM 161 IIIAL ORSIP SR LAI IRA PRORAC CLLC PROCICAL IOVAIO COPL I ASIA RSPOSIILIT OR SOCITY INRIT EICS TRS RSPCT I IIIAL ORSIP R RSLT ORITED OPRAIONAL CLLC P PROIS A LIR I PRORAC ORAIAION C CONIOS CORPORA SOCIAL RSPOSIILITY IPROVEMENT D O IS VAL CRAIO OR IOVAIO CRAION N O BIAS O SISS A ACIL SOLVE PROL Content 113 Research and Development for Excellence 08 Message from the Board of Directors 119 Driving Business for Sustainability 12 Key Performance 119 • Sustainability Management 14 Financial Highlights 126 • Corporate Social Responsibility 16 Milestones and Awards of Success 139 • Quality, Security, Safety, Health, and Environment Management 149 Management Discussion and Analysis (MD&A) 170 Securities, Shareholders, and other Important Information Duties and 172 • Securities and Shareholders Responsibilities of 176 • Juristic Persons whose 10% of shares or more are held by IRPC 24 the Board of Directors 26 Board of Directors 39 Organizational Structure 40 Management Team 49 Report of the Audit Committee Corporate 52 Message from Chairman of Governance the Corporate Governance Committee 178 54 Message from the Chairman of the Nomination and Remuneration Committee 181 Corporate Governance Policy 56 Message from the Chairman of the Risk Management Committee 186 Corporate Governance Structure and Important Information about the Board of Directors, Sub-committees, and Executives 214 Report of Key Corporate Governance Activities 243 People Management Nature of Business 247 Internal Control and Connected Transactions 58 and Business Performance 60 Business Structure and Shareholding 61 • Major Subsidiaries, Joint Ventures, and Important Associated Companies Financial 63 Nature of Business Statements 68 Integrated Petroleum and Petrochemical Complex Flow Chart 258 70 • Production Capacity and Volume 73 Products 260 Report of the Board of Directors’ Responsibilities for the Financial Reports 83 Market Overview and Industry Outlook 261 Report of the Independent Certified Public Accountants 95 Revenue Structure 264 Financial Statements 97 Strategic Projects for Business Growth 273 Notes to the Financial Statements 103 Risk Management Content 113 Research and Development for Excellence 08 Message from the Board of Directors 119 Driving Business for Sustainability 12 Key Performance 119 • Sustainability Management 14 Financial Highlights 126 • Corporate Social Responsibility 16t Milestones and Awards of Success 139 • Quality, Security, Safety, Health, and Environment Management 149 Management Discussion and Analysis (MD&A) 170 Securities, Shareholders, and other Important Information Duties and 172 • Securities and Shareholders Responsibilities of 176 • Juristic Persons whose 10% of shares or more are held by IRPC 24 the Board of Directors 26 Board of Directors 39 Organizational Structure 40 Management Team 49 Report of the Audit Committee Corporate 52 Message from Chairman of Governance the Corporate Governance Committee 178 54 Message from the Chairman of the Nomination and Remuneration Committee 181 Corporate Governance Policy 56 Message from the Chairman of the Risk Management Committee 186 Corporate Governance Structure and Important Information about the Board of Directors, Sub-committees, and Executives 214 Report of Key Corporate Governance Activities 243 People Management Nature of Business 247 Internal Control and Connected Transactions 58 and Business Performance 60 Business Structure and Shareholding 61 • Major Subsidiaries, Joint Ventures, and Important Associated Companies Financial 63 Nature of Business Statements 68 Integrated Petroleum and Petrochemical Complex Flow Chart 258 70 • Production Capacity and Volume 73 Products 260 Report of the Board of Directors’ Responsibilities for the Financial Reports 83 Market Overview and Industry Outlook 261 Report of the Independent Certified Public Accountants 95 Revenue Structure 264 Financial Statements 97 Strategic Projects for Business Growth 273 Notes to the Financial Statements 103 Risk Management e Price Approval e order e Finance e Delivery Order e Payment e Document Tracking IRPC 4.0 The digital leader by integrating digital system for organization-wide efficiency enhancement. Real-time efficiency improvement system, able to measure and monitor KPIs status of each individual plant. PLUS IRPC has developed innovation excellence in all aspects by introducing digital technology for efficiency enhancement. , real-time KPIs dashboard, is utilized to precisely predict maintenance in advance, uplifting the capacity of key businesses and outreaching to new ones. Applying streamlined digital and technology systems for operational efficiency enhancement through IRPC 4.0 and Everest Forever (E4E) Projects. BALANCE : 98.0000041% 01 DATA 01 02 DATA 01 DATA 01 03 10% 04 20% 30% 30% 50% 80% 90% A B Created OPS 4.0 controls and plans production value-added system with Artificial Intelligence (AI) of over 1,333 Million Baht CCM 4.0 a digital system to meet customer Million Baht needs with speedy response 539 Million Baht ISC 4.0 a cutting-edge tool in selective buying of crude and raw material, and production planning 386 Million Baht ERP 4.0 information technology structure formation focusing on corporate management system transformation 3 Million Baht IRPC PROSTHETIC INNOVATION LEG CENTER Elevating research and development and innovation creation to Polymer innovation to support the Excellence. quality prosthetic leg production. GREEN FLOATING CONCEPT SOLAR WITH ECO SOLUTION “Green Concept with Eco Solution” Floating Solar Project from product uses plastic innovation polymer innovation, the largest to recycle with natural material. in Southeast Asia. PLUS Places importance on continuous research and development, seeks for value-added innovations and satisfies customer needs in diverse forms, including innovation to strike a balance in economy, society and environment for better livelihoods of all. Innovative production of IRPC combines plastic with other materials to become new products for consumer demand fulfillment and heightened life quality for the future. PP Compound Plastic parts account for EV Car 90% POLIMAXX Bio-Maxx L - Cement Natural rubber mixed with cement 30:70% Polypropylene Copolymer 3340 H Grade The first runner-up of POLIMAXX the 2020 National Innovation Award Wood Plastics Composite in Society and Environment Plastic mixed with wood chips 70:30% 47 Internal Control 4. Information & Communication The quality of information and communication was of great importance to IRPC because it effects effective internal control. IRPC’s directors, management, and employees were entitled to vital information about company performance. The directors always received meeting documents in advance to afford them sufficient time to digest the information and make their decisions accordingly. Internal channels of communication included Town Hall (senior management to employees), corporate intranet, electronic mail, and Line chat groups. Meanwhile, channels of communication for external stakeholders included text messaging (SMS), Line messaging application, electronic mail, Facebook, and company website. A specialized unit was directly responsible for disclosing critical information to stakeholders on a regular basis. Through a well-defined whistleblower system, IRPC assured its employees and external parties that their reports would be reviewed with the utmost confidentiality, justice, honesty, and transparency, and timeliness. IRPC’s adoption of digital technology improved operational processes by eliminating unnecessary steps. Moreover, digital analyzes proved beneficial to the operations, employees, and customers of IRPC. This digital adoption08 2020 was Annual known Registration as the StatementIRPC 4.0 / Project,IRPC Public which Company encompassed Limited manufacturing operations (artificial intelligence–enabledAnnual Report (56-1controls One Report) and system planning), marketing (understanding and quickly responding to customer needs), procurement (eliminating redundant procedures and enhancing procurement planning), supply-chain services (supply-chain management through analyzing customer behavior and feedstock availability),Message and information from technology management and infrastructure. IRPC began developing an E-Compliance database to store information about pertinent laws, rules, regulations, andthe compliance Board assessment. of Directors The database is expected to be operational in 2020. Furthermore, IRPC raised an awareness of governance, risk management, and compliance (GRC) among its employees through regular communications, informing them of implementation guidelines and requirements. The goal of GRC communications was to ensure efficiency, transparency, and compliance. 5. Monitoring Activities IRPC monitored and assessed the adequacy of internal controls. It also formulated remedial measures for weaknesses uncovered to ensure the efficiency and effectivenessImpacted of controls. The by company economic required management of every corporate echelon (the first line of defense) volatility,to oversee