C O N T E N T S 0022 005 5 007 7 008 8 Vision Mission Message from General Awards and Core Value the President Information Recognition in 2020 1100 552 2 558 8 664 4 7722 Section 1: Business 2. Risk 3. Driving 4. Management 5. General Information Discussion and Analysis Operation and Management Sustainable Business and Other Significant (MD&A) Information Performance 1. BAFS Group Structure and Operation 7744 1108 08 1125 25 114040 Section 2: Corporate Governance 7. Corporate Governance 8. Report on 9. Internal Control Structure and Significant Corporate Governance and Connected 6. Corporate Governance Policy Information Relating to Board Performance Transactions of Directors, Subcommittees, Executives, Employees, and Others 118080 225252 2287 87 Section 3: Financial Statements Enclosure Enclosure 2: Enclosure 1: Details of Directors Details of Board of Directors, Executives, Authorized of Subsidiaries Person, the Person Assuring Overall Responsibility in Accounting and Finance (CFO), Chief Accounting and Corporate Secretary 228989 291291 2296 96 297297 Enclosure 3: Enclosure 4: Enclosure 5: Enclosure 6: Details of the Chief Audit Executive Operating Property and Details Corporate Governance Report of the Audit and the Chief Compliance Officer of Property Valuation Policy and Practices Committee and Code of Conduct Investors can study information of the company with newly issued shares in the Annual Registration Statement/Annual Report 2020 (Form 56-1 One Report) as shown in www.sec.or.th or www.bafsthai.com” Annual Registration Statement/Annual Report 2020 (Form 56-1 One Report) BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED Vision 02 Core value Belief Awareness Following Service in Teamwork of Safety Best Practice with Our Heart Quality and Environment WE ARE CARBON NEUTRAL BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED 03 Mission Society/ Businesss Community/ Shareholders Customers Partners Employees Environment Regulators Competitors To conduct To deliver To adhere to the To develop the To be responsible To abide by the To conduct business to attain customer Corporate employees to for the society, laws, regulations business fairly in sustainable wealth satisfactions by Governance Codes,, reach their highest community and and other rules accordance with and positive focusing on qualityy guidelines of the potential, environment, as relevant to the international returns to and utmost safety, Collective Action professionalism stipulated in the business conduct, practices, under the shareholders in accordance to Coalition against and ethics, and to sustainability with accountability,y, rules and consistently. international Corruption, and to adhere to the framework. virtue, and regulations relating standards. strictly comply withh Corporate transparency. to trade. the contracts and Governance Codes.. conditions as agreed. Annual Registration Statement/Annual Report 2020 (Form 56-1 One Report) BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED 04 WE ARE CARBON NEUTRAL BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED Message from the President In 2020, the Coronavirus Disease 2019 (COVID-19) brought service at Phichit depot since June 2019. Whereas its the tourism and aviation industries of the world and Lampang depot is expected to be completed and Thailand to a standstill. Various governments put strict commercial operation will commence in the third measures on international travel restrictions, resulting in quarter of 2021. NFPT is a mode of fuel transportation a decline of more than 60 percent in the aviation fuel which is a closed system. It prevents leaks of oil vapors, volume, and a 52 percent decline in total revenue of reduce CO2 emissions and PM2.5 pollution. In addition, BAFS GROUP. As a result, it is necessary for BAFS to focus the fuel pipeline transportation is the safest mode of on the financial risk management by imposing a policy to fuel transport and helps reduce accident rates, minimize maintain cash liquidity and an adequate cash flow for BAFS road surface damages caused by fuel trucks, and more GROUP’s operations amid the situation at that time. Strict importantly, support community employment to achieve cost reduction measures, postponing investments in some mutual sustainability. projects, managing cash reserves from retained earnings At the same time, BAFS is certified as Carbon Neutral and debentures, securing loans from financial institutions Company in alignment with its policy to carry environmental are some of the measures taken to reduce the impacts friendly business, underlining business approaches of caused by volatility of cash flow and to generate sufficient BAFS GROUP. 05 fund for investment in requisite projects that would readily generate incomes. In addition, BAFS has systematically set Essentially, BAFS has laid a strong foundation for future the measures to prevent infection and epidemic of COVID-19 business growth and enhanced sustainability for all its among its employees and monitoring the situation closely to stakeholders, covering economic, social and environmental ensure the readiness for operations and business continuity. dimensions. BAFS is committed to being a role model as an energy service leader, operating business within the The severe impacts of COVID-19 outbreak had caused BAFS’ sustainability framework and creating positive impacts negative financial result for the first time. Notwithstanding to give value for and to obtain the so-called license to this and based on the good governance principles, efficient operate from all its stakeholders. BAFS’ business approach risk management, knowledge management towards is consistent with and responsive to the United Nations’ innovation and sustainability management; BAFS could Sustainable Development Goals (SDGs), successfully execute the Growth Strategy in 2020 to strengthen BAFS GROUP’s financial stability through the On behalf of the Board of Directors, Management and operations of its subsidiaries, namely; preparation for the employees of BAFS, I would like to extend our thanks to investment in the new airport refuelling system; assembly, all stakeholders for the trust and supports given to BAFS’ distribution and export of aircraft refuelling vehicles in operations. I am confident that BAFS’ business model the region by BAFS Intech Company Limited; innovation based on good governance and sustainability principles and development and digital solution business by BAFS its growth strategy have made BAFS ready for the future Innovation Development Company Limited; and the world in transformation and a new generation of society. latest, the investment in solar power plants by BAFS Clean This will bring desirable results to all stakeholders and Energy Corporation Company Limited which enabling create positive impact for the business and for the country BAFS to realize earning of revenues from power plants at large in term of economic, social and environmental which are already in full commercial operation. dimensions. This, I believe, truly reflects the resilience and sustainability of our BAFS GROUP. For the northern fuel pipeline transportation project (NFPT), Fuel Pipeline Transportation Limited has completed the construction and operated for commercial Prakobkiat Ninnad President Annual Registration Statement/Annual Report 2020 (Form 56-1 One Report) BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED 06 WE ARE CARBON NEUTRAL BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED General Information (Unit : Million Baht) Key Financial Status and Performance 2020 2019 2018 2017 2016 Services Income 1,804.3 3,872.4 3,754.3 3,581.3 3,564.7 Other Income 78.1 45.8 52.3 58.9 146.8 Total Revenue 1,882.5 3,918.2 3,806.6 3,640.2 3,711.5 Cost of Services 1,528.6 1,829.2 1,658.9 1,606.0 1,546.3 Gross Profit 275.7 2,043.2 2,095.4 1,975.3 2,018.4 Administrative Expenses 588.9 701.4 611.8 583.8 578.6 Profit before finance cost and income tax expenses -235.0 1,387.6 1,535.9 1,450.4 1,586.6 Finance cost 281.1 196.3 139.4 160.3 131.2 07 Profit for the year -418.9 967.4 1,110.2 1,028.5 1,172.3 Profit attributable to Equity holders of the Company -374.3 939.9 1,050.6 970.6 1,097.1 Cash, cash equivalents and Current investments 804.6 2,038.5 2,179.0 2,064.6 4,363.5 Total Assets 19,465.8 17,345.8 16,290.4 12,414.4 12,157.8 Total Liabilities 12,698.4 9,482.0 8,437.4 4,844.7 4,786.6 Total Shareholders’ Equity 6,767.4 7,863.8 7,853.0 7,569.7 7,371.2 Key Financial Ratios Gross Profit Margin 15.28% 52.76% 55.81% 55.16% 56.62% Net Profit Margin -22.25% 24.69% 29.17% 28.25% 31.59% Return on Total Assets -2.28% 5.75% 7.74% 8.37% 11.33% Return on Total Equity -5.73% 12.31% 14.40% 13.77% 17.99% Total Liabilities to Total Equity (Times) 1.88 1.21 1.07 0.64 0.65 Book Value per share* (Baht) 10.62 12.34 12.32 11.87 11.56 Dividend per share (Baht) 0.00 1.25 1.37 1.25 1.50 Earning per share* (Baht) -0.59 1.47 1.65 1.52 1.72 Notes: * Calculation from the total common shares of 637.5 million shares Annual Registration Statement/Annual Report 2020 (Form 56-1 One Report) BANGKOK AVIATION FUEL SERVICES PUBLIC COMPANY LIMITED Awards and Recognition in 2020 Sustainability Disclosure Award 2020 from Thaipat Institute BAFS received Sustainability Disclosure Award 2020 from Mr. Voranat Piantham, Director of Thaipat Institute, at the event entitled “The State of Corporate Sustainability in 2020”, held on December 22, 2020 at the Auditorium, Bangkok Art and Culture Centre. The award is given to a Thai listed company being assessed through its Sustainability Report that can disclose, other than financial information, the Thailand Sustainability Investment company’s roles and operations related to sustainable (THSI) development in environmental, social and governance (ESG) BAFS was included in “a list of THSI aspects, thus benefiting the stakeholders while driving the sustainable stocks 2020” and awarded company towards achieving long-term sustainability and the Thailand Sustainability Investment (THSI) Sustainable Development Goals (SDGs).