SCG Packaging Public Company Limited First 10 major Shareholders (As of December 31, 2019) Company Profile No. of Ordinary Percent of Shareholders Shares Total Shares Registration No. 0107537000921 (Issued and Paid-up) Head Office Address 1 Siam Cement Road, Bangsue, Bangkok 10800 1. The Siam Cement Public Company Limited 3,095,882,660 99.037 Business Type The Company generates revenue from holding shares in other 2. Mr. Taewan Tantichattanont 2,320,000 0.074 companies (Holding Company), operating core business for 3. Randery Burahmakan Company Limited 1,872,000 0.060 packaging solutions provider which are organized into two main 4. Ms. Orapin Thidarat 1,634,000 0.052 operating segments: integrated packaging chain and fibrous chain, also other relating businesses. 5. Mr. Man Nana 1,563,200 0.050 Initial Registered Capital (as at the registration date of conversion into the Public Limited 6. Roman Catholic Mission of Bangkok 1,068,960 0.034 Company on March 24, 1994) 7. Mr. U-thane Tantichattanont 1,000,000 0.032 Registered Capital: 1,000 Million Baht 8. Mr. Somsak Nana 931,440 0.030 Paid-up Capital: 1,000 Million Baht Issued and paid up ordinary shares of: 100 Million shares 9. Mr. Pipatpong Israsena Na Ayudhya 528,880 0.017 Issued and paid up preference shares: - None - 10. Mr. Yuph Nana 499,440 0.016 Par value of 10 Baht per share 11. Other Shareholders 18,699,420 0.598 Present Registered Capital Registered capital: 4,500 Million Baht Total 3,126,000,000 100.000 Paid-up capital: 3,126 Million Baht Issued and paid up ordinary shares of: 3,126 Million shares Issued and paid up preference shares: - None - Par value of 1 Baht per share Website www.scgpackaging.com Share Registrar Tel: +66 2586 2894 Fax: +66 2586 3007 E-mail: [email protected] Investors can find further information regarding the Company from the Registration Statement for Securities Offering (Form 69-1) and Prospectus which has been disclosed at www.sec.or.th or www.scgpackaging.com. CONTENTS Financial overview SCG Packaging SCG Packaging Public Company Limited Public Company Limited and Its Key Subsidiaries and its Subsidiaries 5 2 Message from the Board The Audit Committee’s The Governance and of Directors Report Nomination Committee’s Report 6 8 10 The Remuneration Committee’s Report 11 2019 Operating Results Sustainable Development A Sustainable World through SCG Packaging Performance 2019 Circular Economy Public Company Limited and its Subsidiaries 16 20 12 Management Structure 22 2019 Consolidated 2019 Financial Statements Financial Statements of of SCG Packaging SCG Packaging Public Company Limited Public Company Limited and its Subsidiaries 153 45 Holding Company in Subsidiaries, Associates, and Other Companies 218 Annual Report 2019 2 SCG Packaging Public Company Limited Financial Overview SCG Packaging Public Company Limited and its Subsidiaries Unit : Million Baht Profit Before Finance Costs, Income Tax Expense, Profit Attributable to Owners of the Parent Depreciation and Amortization - EBITDA 1036 6,066 14,566 29 12,082 4,425 10,499 10,554 8,843 8,518 8,554 9,189 9,422 3,332 3,418 3,285 3,290 3,123 3,194 3,225 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Assets Revenue from Sales 191 900 87,255 81,455 74,542 70,907 64,614 91,312 93,246 57,430 59,135 83,218 85,369 54,839 51,714 73,987 65,141 58,439 50,127 52,463 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3 Financial Overview SCG Packaging Public Company Limited and its Subsidiaries Unit : Million Baht 2019 2018 2017 2016 2015 Statements of Income1 Revenue 89,911 87,770 82,862 75,128 71,598 Costs and expenses 83,024 79,661 76,888 70,799 67,114 1036 6,066 14,566 EBITDA 15,036 14,566 12,082 10,554 10,499 29 12,082 5,269 4,425 Profit attributable to owners of the parent 6,066 4,425 3,285 3,225 10,499 10,554 8,843 8,518 8,554 9,189 9,422 Statements of Financial Position 3,332 3,418 3,285 3,290 3,123 3,194 3,225 Assets 139,513 93,246 91,312 85,369 83,218 Liabilities 76,697 39,986 35,661 32,617 34,892 Total equity attributable to owners of the parent 42,952 40,441 42,891 40,402 38,339 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total shareholders’ equity 62,816 53,260 55,651 52,752 48,326 Share Information Total number of shares issued2 (Million 3,126 3,126 3,126 3,126 3,126 Shares) Book value per share2 (Baht) 13.74 12.94 13.72 12.92 12.26 Basic earnings per share2 (Baht) 1.69 1.94 1.42 1.05 1.03 Proposed dividends per share2, 3 (Baht) 0.98 0.50 2.50 0.25 0.25 191 900 87,255 Financial Ratio 81,455 74,542 70,907 Dividends payout ratio (%) 57.9 25.8 176.6 23.8 24.2 64,614 91,312 93,246 57,430 59,135 Profit on revenue from sales (%) 5.9 7.0 5.4 4.4 4.5 83,218 85,369 54,839 51,714 73,987 Return on assets (%) 4.5 6.6 5.0 3.9 4.1 65,141 58,439 50,127 52,463 Return on equity attributable to owners of the parent (%) 12.6 14.6 10.6 8.3 8.7 Remarks: 1 Included financial performance of Fajar since July 2019 and Visy (Thailand) since September 2019 2 In 2019, there is a change to par value of the ordinary shares of the company and an issuance of stock dividend. This has caused the number of the ordinary shares increase from 156.3 million shares to 3,126 million shares. The numbers of the ordinary shares used in financial calculation during 2015-2018 period are adjusted to reflect those changes as if the change in par value of the ordinary share and the issuance of stock dividend had occurred since the beginning of the respective reporting period. 3 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 The proposed full year dividend of 0.98 baht per share is calculated from 1) Interim dividend in an amount of 1.11111111 baht per share on 1,563 million ordinary shares 2) Final dividend in an amount of 0.42 baht per share on 3,126 million ordinary shares 5 SCG Packaging Public Company Limited and Its Key Subsidiaries Integrated Packaging Chain 1. Fiber-Based Packaging 2. Performance and Polymer Packaging • Thai Containers Group Co., Ltd. • Conimex Co., Ltd. • D-In Pack Co., Ltd. • TC Flexible Packaging Co., Ltd. • Dyna Packs Co., Ltd. • Prepack Thailand Co., Ltd. • Tawana Container Co., Ltd. • Visy Packaging (Thailand) Limited • Thai Containers Khonkaen Co., Ltd. • SCGP-T Plastics Co., Ltd. • Thai Containers Rayong Co., Ltd. • SCGP Rigid Plastics Co., Ltd. • Precision Print Co., Ltd. • Tin Thanh Packing Joint Stock Company (Vietnam) • SCGP Solutions Co., Ltd. • Orient Containers Co., Ltd. 3. Packaging Paper • Alcamax Packaging (Vietnam) Co., Ltd.(Vietnam) • Thai Cane Paper Public Company Limited • AP Packaging (Hanoi) Co., Ltd. (Vietnam) • Siam Kraft Industry Co., Ltd. • New Asia Industries Co., Ltd. (Vietnam) • PT Dayasa Aria Prima (Indonesia) • Packamex (Vietnam) Co., Ltd. (Vietnam) • PT Fajar Surya Wisesa Tbk. (Indonesia) • PT Indocorr Packaging Cikarang (Indonesia) • SCGP Solutions (Singapore) Pte. Ltd. (Singapore) • PT Indoris Printingdo (Indonesia) • United Pulp and Paper Co., Inc. (Philippines) • PT Primacorr Mandiri (Indonesia) • Vina Kraft Paper Co., Ltd. (Vietnam) • TCG Rengo (S) Ltd. (Singapore) (on process of liquidation) Fibrous Chain 1. Forestry Business 2. Pulp and Paper Products • The Siam Forestry Co., Ltd. • Thai Union Paper Public Company Limited (on process of liquidation) • Thai Paper Co., Ltd. • Phoenix Pulp & Paper Public Company Limited • Phoenix Utilities Co., Ltd. • Interpress Printers Sendirian Berhad (Malaysia) Other Businesses • Invenique Co., Ltd. • SKIC International Co., Ltd. • SCG Paper Energy Co., Ltd. • SCGP Excellence Training Center Co., Ltd. Annual Report 2019 6 SCG Packaging Public Company Limited Message from the Board of Directors SCG Packaging Public Company Limited The economies of Southeast Asia continue to grow at a strong the export sector slowed due to the prolonged US-China trade and healthy pace, relative to other regions, while the global war, and the appreciation of the Thai Baht. economy has recently encountered dramatic challenges such as the US-China trade war, oil prices fluctuations, and volatility The company continues to focus on expanding its investments of the capital markets and currency rates. in the Southeast Asia region, and works towards improving the organization’s efficiency to respond to quick pace of changes The packaging industry in Southeast Asia witnessed healthy through more competitive supply chain offerings such as growth in 2019, driven by competitive product and service integrated packaging solutions. With the company’s efforts, exports, favorable demographics with increased purchasing total revenue from sales in 2019 registered at 89,070 million power of the working class, and other lifestyle changes. All of baht, representing a 2% increase from last year, in which sales these factors have led to the growth of packaging offering for the from Southeast Asia (excluded Thailand) was accounted for variety of consuming behaviors, namely convenient packaging, 30% of the total revenue.