Charoen Pokphand Foods : Annual Review 2022

Charoen Pokphand Foods Public Company Limited

Annual Report 2022 (Form 56-1 One Report)

Food innovation for better life and better world

Message from Executives

The Company has made a commitment to Science Based

Targets initiative (SBTi), to reduce GHG emissions and Net Zero by 2050 target sustainable

DISCLAIMER : THE USE BY CHAROEN POKPHAND FOODS PCL OFANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF CHAROEN POKPHAND FOODS PCL BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

Charoen Pokphand Foods PCL. operates a fully integrated agro-industrial and food business with the goal of establishing food security to become the "Kitchen of the World" with sustainable growth. The Company and its joint investments have manufacturing base in 17 countries around the world, and exports from Thailand to over 40 countries. The Company is on a mission to develop and deliver highly nutritious and tasty products which satisfy consumers. Concurrently, we strive to maintain the balance of business success and the value delivered to all stakeholders in alignment with The '3-Benefit' principles which aims to create prosperity for the country, local communities as well as the company and its people, under the foundation of good corporate governance.

Last year, the COVID-19 pandemic severely impacted the global economy, resulting in changes in consumer preferences and behaviors. Additionally, foreign conflicts, particularly in Ukraine and Russia, caused sharp increases in energy and raw material prices for animal feed, leading to inflation in many nations and increased interest rates. These factors presented challenges for the business, and as a result, the Company adopted policies to adjust to the shifting consumer preferences and remained cautious in making investments, as well as focus on effective cost management by increasing operating efficiency through various innovations and technologies in the manufacturing process, such as digital systems and blockchain technology.

of 0.75 Baht per share, comprising the interim dividend payment for shareholders on 14 September 2022 of 0.40 Baht per share, and an annual dividend payment proposed to be paid to shareholders on 25 May 2023 of 0.35 Baht per share.

Aside from the aforementioned factors, the livestock industry in many countries has also faced epidemics such as African Swine Fever (ASF) in the swine industry. During this time, the Company has implemented stringent biosecurity measures in our farms and operations to keep our animals safe which inturn deliver high-quality meat products for consumers.

The Company prioritizes economic growth alongside maintaining a balance with sustainable development, environmentally and socially, with good corporate governance. In 2022, the Company signed up for the Science Based Targets initiative (SBTi), which commits the Company to reduce GHG emissions to Net Zero by 2050. The Company has supported the reduction of coal energy usage and increased the adoption of renewable energy. Specifically, the Company ceased the use of coal energy at our facilities in Vietnam in June 2020 and completed the phase-out of coal energy at our facilities in Thailand in December 2022. Furthermore, the Company has worked with banks in many countries on programs to support suppliers and customers, by giving them access to the capital which will improve their liquidity during an economic slowdown.

In 2022, The Company recorded revenue from sales totaling 614,197 million Baht, representing growth from 2021 by 20%. Asset values were 926,987 million Baht, taxes paid to the state were 6,003 million Baht and net profit was 13,970 million Baht, or growth from 2021 by 7%.

The Company's Board of Directors resolved to propose to the 2022 Annual General Meeting of Shareholders to approve the payment of dividends for 2022 at a rate

On behalf of the Board of Directors, executives, and employees, we would like to extend our gratitude to all stakeholders for the continuous trust and support. We shall continue to drive business growth following our vision "Kitchen of the World" in order to strengthen food security, based on the foundation of good corporate governance and contribution to the society, community, and environment, as well as to achieve sustainable economic growth.

Mr. Soopakij Chearavanont

Mr. Prasit Boondoungprasert

Chairman

Chief Executive Officer

Our Purpose

Vision

Kitchen of the World

To deliver top quality products to consumers in every corner of the world.

Mission

The Company operates vertically integrated agro-industrial and food businesses to offer top quality products in terms of nutrition, taste, food safety, and traceability. The Company is determined to build business growth in strategic locations with the focus to maintain world-class, modern production process as well as efficient and ecofriendly consumption of natural resources in order to enhance its competencies and competitive edge on an international level. We take into account the interests of all stakeholders to ensure sustainable growth, while being able to continuously generate appropriate returns to shareholders.

Kitchen of the World

Corporate Strategic Direction

Sustainability

Sustainable Growth

Aiming for Excellent

Building Solid Foundation

Expand integrated agro-industrial and food business

Be a leader in quality and food safety

Focus on people development

Enhance capability to become a global company

Promote innovation and efficiency enhancement

Take responsibility for society and environment

Corporate Governance

Three Benefits to Sustainability (for the Country, People and the Company)

Adapt to Change

Speed and Quality

Simplification

Integrity, Honesty and Reciprocity

Innovativeness

CPF Operation Structure

as of December 31, 2022

36%*

31%*

5%*

Export 27%*

21%* 6%*

CP-Meiji

37%*

Other (2)

Republic of

China (Taiwan)

HyLife Investment

Ross Breeders Siam

Arbor Acres Thailand

Russia

United

United

SuperDrob

States

Kingdom

India

Philippines

Malaysia

Cambodia

Türkiye

China (CTEI)

Laos

Poland

Belgium

Sri Lanka

Camanor Productos Marinhos

CP All

Siam Makro

Well Well Invest S.A.

Note :

• (1) % of shareholding represent both direct and indirect holding. Presenting only major associates and joint ventures.

• (2) List of other operation areas.

• (3) Group of associate and joint venture of CPP. Details are available in Note to the Financial Statements for the year 2022.

(59.99%)

(50.10%)

(49.99%)

(49.98%)

(49.45%)

(40.00%)

(34.09%)

(8.85%)

(33.33%)