Content 010 072 185 Messages from the Chairman Management Structure Anti-Corruption and Chairman of Executive Committee 016 089 188 Business Overview Information of Directors, Internal Control and Executive Officers, Company Secretary, Risk Management Internal Audit, Account Controller and Compliance 018 108 192 Company History in Brief Report of Executive Committee Related Transactions 022 111 204 Nature of Business Report of the Sustainability Report of the Audit Committee and Corporate Governance Committee 039 115 208 Risk Factors Corporate Governance Head of Internal Audit Biography 048 172 210 General Information Report of the Remuneration Board of Directors’ Statement and Other Information and Nomination Committee of Responsibility for Financial Reports 060 176 212 Dividend Policy Head of Compliance Biography Management Discussion and Analysis 062 178 222 Securities Details and Corporate Social Responsibility Annual Financial Statements Shareholding Structure and Auditor Report of Certified Public Accountant 002 Summary of Revenue and Earnings Financial Information Before Tax For Fiscal Years Ending December 31, Based on Business Segments* CP ALL Public Company Limited Revenue Earnings and its Subsidiaries Contribution Before Tax Contribution 2017 2018 2019 Consolidated Financial Information (Million Baht) 66 % 78 % CVS AND CVS AND Net Sales and Services Income 471,069 508,212 550,901 OTHERS OTHERS Total Revenues 489,403 527,174 571,110 Net Profit 19,908 20,930 22,343 Net Cash Provided by Operating Activities 46,156 41,227 40,477 Total Assets 360,299 373,742 375,617 34 % 22 % Total Liabilities 280,070 273,923 267,250 Total Equity 80,229 99,819 108,368 CASH AND CASH AND CARRY CARRY * Remark Revenue and earnings before tax before elimination Share Information ( Baht) Book Value per Share 8.93 11.11 12.06 Earnings per Share 2.14 2.22 2.38 Total Revenue Net Profit Dividend per Share 1.10 1.20 1.25 571,110 22,343 Financial Ratios (Percentage) (Million Baht) (Million Baht) Gross Margin (Sales and Services) 22.3 22.3 22.7 EBIT Margin 6.4 6.1 5.9 Net Profit Margin 4.1 4.0 3.9 Net debt to equity (times) 1.70 1.19 1.06 Net debt to equity as determined in the bond covenants (times)* 1.44 1.04 0.94 Net Debt to EBITDA (times) 3.31 2.76 2.56 Return on Total Assets 5.6 5.7 6.0 * Remark The Company is obligated to comply with debenture convenants, by monitoring Net Debt to Equity Ratio. The ratio bases in the information in the consolidated financial statements for the accounting period ending on December 31 of each accounting period that the auditor has audited 2017 2018 2019 2017 2018 2019 ANNUAL REPORT 2019 CP ALL PUBLIC COMPANY LIMITED 003 Summary of Revenue and Earnings Financial Information Before Tax For Fiscal Years Ending December 31, Based on Business Segments* CP ALL Public Company Limited Revenue Earnings and its Subsidiaries Contribution Before Tax Contribution 2017 2018 2019 Consolidated Financial Information (Million Baht) 66 % 78 % CVS AND CVS AND Net Sales and Services Income 471,069 508,212 550,901 OTHERS OTHERS Total Revenues 489,403 527,174 571,110 Net Profit 19,908 20,930 22,343 Net Cash Provided by Operating Activities 46,156 41,227 40,477 Total Assets 360,299 373,742 375,617 34 % 22 % Total Liabilities 280,070 273,923 267,250 Total Equity 80,229 99,819 108,368 CASH AND CASH AND CARRY CARRY * Remark Revenue and earnings before tax before elimination Share Information ( Baht) Book Value per Share 8.93 11.11 12.06 Earnings per Share 2.14 2.22 2.38 Total Revenue Net Profit Dividend per Share 1.10 1.20 1.25 571,110 22,343 Financial Ratios (Percentage) (Million Baht) (Million Baht) Gross Margin (Sales and Services) 22.3 22.3 22.7 EBIT Margin 6.4 6.1 5.9 Net Profit Margin 4.1 4.0 3.9 Net debt to equity (times) 1.70 1.19 1.06 Net debt to equity as determined in the bond covenants (times)* 1.44 1.04 0.94 Net Debt to EBITDA (times) 3.31 2.76 2.56 Return on Total Assets 5.6 5.7 6.0 * Remark The Company is obligated to comply with debenture convenants, by monitoring Net Debt to Equity Ratio. The ratio bases in the information in the consolidated financial statements for the accounting period ending on December 31 of each accounting period that the auditor has audited 2017 2018 2019 2017 2018 2019 004 Career Opportunities Happiness We are ready to provide over 35,000 career opportunities to individuals who are interested in becoming a part of Opportunities the CPALL family. Creating Happiness Opportunities through Sustainable Value Chains Business Growth Opportunities We believe that creating opportunities is about putting smiles Providing growth on people’s faces. Especially by helping to enhance opportunities for all in livelihoods, improve local economies, and provide opportunities a diverse range of occupations, from SME for the grassroots, all of these aspects make national business owners, to farmers, suppliers, security a real possibility. contractors, and those interested in becoming 7-Eleven business CPALL is committed to, and recognizes the importance of partners. the involvement of all parties in our supply chain. We are therefore focused on operating on the principles of good governance, integrity, and transparency to ensure that all Thai people can achieve efficient growth – bringing smiles to us all. ANNUAL REPORT 2019 CP ALL PUBLIC COMPANY LIMITED 005 Career Opportunities Happiness We are ready to provide over 35,000 career opportunities to individuals who are interested in becoming a part of Opportunities the CPALL family. Creating Happiness Opportunities through Sustainable Value Chains Business Growth Opportunities We believe that creating opportunities is about putting smiles Providing growth on people’s faces. Especially by helping to enhance opportunities for all in livelihoods, improve local economies, and provide opportunities a diverse range of occupations, from SME for the grassroots, all of these aspects make national business owners, to farmers, suppliers, security a real possibility. contractors, and those interested in becoming 7-Eleven business CPALL is committed to, and recognizes the importance of partners. the involvement of all parties in our supply chain. We are therefore focused on operating on the principles of good governance, integrity, and transparency to ensure that all Thai people can achieve efficient growth – bringing smiles to us all. 006 Sharing Market Opportunities Sharing Education Opportunities Sharing opportunities at the grassroots level by providing a sales channel for We believe that children and community products, and the youth are the future of this by using such products as country. Comprehensive production raw materials educational scholarships within CPALL and Group covering all areas, including companies. work-based learning methods, and the ability to secure jobs upon graduation,ensures that Sharing the youth will have opportunities for a good standard of living and a secure future. Happiness Sharing is the True Source of Happiness Because all of society is like a part of our family, CPALL strives to share opportunities and smiles with communities and societies all around us through local economic development projects. These projects strengthen communities by enhancing the capabilities of smallholder farmer groups and through education, which can open doors to careers that can ultimately build a strong and sustainable foundation for society. ANNUAL REPORT 2019 CP ALL PUBLIC COMPANY LIMITED 007 Sharing Market Opportunities Sharing Education Opportunities Sharing opportunities at the grassroots level by providing a sales channel for We believe that children and community products, and the youth are the future of this by using such products as country. Comprehensive production raw materials educational scholarships within CPALL and Group covering all areas, including companies. work-based learning methods, and the ability to secure jobs upon graduation,ensures that Sharing the youth will have opportunities for a good standard of living and a secure future. Happiness Sharing is the True Source of Happiness Because all of society is like a part of our family, CPALL strives to share opportunities and smiles with communities and societies all around us through local economic development projects. These projects strengthen communities by enhancing the capabilities of smallholder farmer groups and through education, which can open doors to careers that can ultimately build a strong and sustainable foundation for society. 008 Sharing for the Benefit of Thai Society To ensure that our consumers will receive clean, safe, and fairly priced products that are accessible near to home, our branches provide services all across Thailand to help Sharing with Sharing improve the qualities of Opportunities life of the Thai people. for a Better Environment Responsibility Embracing environmental responsibility through our Green Store, Green Packaging, Green Products, and Green Living concept. Sharing Happiness Through Responsible Conduct CPALL operates our business on the principles of environmental responsibility. Our management of environmental capital and energy use efficiency guarantees that the products and services across our supply chainfully embody this commitment as they reach the hands of our consumers. ANNUAL REPORT 2019 CP ALL PUBLIC COMPANY LIMITED 009 Sharing for the Benefit of Thai Society To ensure that our consumers will receive clean, safe, and fairly priced products that are accessible near to home, our branches provide services all across Thailand to help Sharing with Sharing improve the qualities of Opportunities life of the Thai people. for a Better Environment Responsibility Embracing environmental responsibility through our Green Store, Green Packaging, Green Products, and Green Living concept. Sharing Happiness Through Responsible Conduct CPALL operates our business on the principles of environmental responsibility. Our management of environmental capital and energy use efficiency guarantees that the products and services across our supply chainfully embody this commitment as they reach the hands of our consumers.