Message to shareholders
Dear Shareholders

The effect of global economic crisis in the last quarter of 2008 had an adverse impact on the entire economy as well as the petrochemical and chemical industry in early 2009. On recognition of the hardship, the Board of Directors closely monitored the situation through regular Board meetings. Concerned with the impact, the Board had revised the business plan, sale and marketing strategies, and the production plan.

Affected by the wave of economic crisis, the Company rapidly adopted an immediate action plans, including proactive sales and marketing strategies, energy saving measures, the improvement in the operating system and cash flow management.

The Company also conveyed these messages to all employees to overcome the difficulties. In 2009, owing to employees’ supports, the Company realized Baht 87,083 million in revenue and the better-than-expected net profit of Baht 6,802 million or Baht 4.54 per shares.

However, shareholders could have been informed of the Central Administrative Court’s injunction on the suspension of the 7 investment projects in Map Ta Phut Industrial Estate, involving the Company and its subsidiaries. The Company has assessed the direct and indirect impacts on the Company’s projection, Meanwhile, we have also formulates a round table discussion in order to settle for a solution and mitigate the impact in all aspects. The Board of Director’s also took into consideration possible investment risk and set out long-term goals and directions, to ensure sustainable growth of the Company.

Investment

In 2009, the Company expanded its investment overseas through Emery Oleochemicals (M) Sdn, Bhd, a 50:50 joint venture of PTT Chemicals International Private Limited and Sime Darby Plantation (M) Sdn Bhd of Malaysia, a world-class oleochemical company, to strengthen the Company’s regional business expansion with the goal to become a global leader in the biochemical product business.

Customer-Oriented Product Development

As innovation and the plastic industry are interconnected, the Company develops Polymer products under “InnoPlus”, a well-received brand not only in domestic but also in international markets, in order to meet customers’ needs and offer them various alternatives. Meanwhile, through the improvement of the supply chain management, the internal administration was enhanced to foster efficient customer relationship, in which highlighted our belief that customers are our business partners.

Employees-key Driven Towards Organizational Strength

The Company believes in its employees potential which is a key to our business success in 2009. The Individual Development Program (IDP), whereby each employee is invited to plot their individual development plan together with their superiors, was introduced. With the Company’s support, this will allow them to fully develop their own potential. This year, for the first time, the Company also introduced a new systematic approach called “Pay for Performance”, which describes financial returns that match employees’ performance.

Social and Environment Responsibilities

We give high value in a better quality of life and better society, by initiating numerous community and social development projects. Our employees are committed to social responsibilities and devote themselves in supporting activities for the communities.

The Company emphasizes on performing best practices and operating its business with high responsibilities throughout the whole value chain which leads to a continuous improvement. As a result, we ceaselessly achieved numerous environmental quality awards from certified institutions. Furthermore, in order to build safety culture, the Company established “The Behavior Based Safety” Project (BBS).

Stable growth and Sustainable Development

The Company underlined the importance of a Stable growth and Sustainable Development, via its vision and mission. Our management demonstrates the ambition of becoming a trustworthy and highly responsible organization for all stakeholders, through safety and environmental awareness and compliance with the Good Corporate Governance practices, resulting in a great number of awards. Some of our dignified prizes were the Board of the Year for Exemplary Practices and the Audit Committee Award for 2008/2009, which were evaluated and bestowed by the Thai Institute of Directors and other acceptable institutions.

We are grateful for all’s supports and trusts. It is undeniable that shareholders have played an inevitable role in helping the Company overcome obstacles. We also appreciate all supports from other stakeholders, e.g. the government and private sector, customers, business partners, and communities at home and internationally.

We, as the Board of Directors, will put our efforts in monitoring and governing the Company to assure competitive ability and commit to engage proactively with Thai communities on the basis of transparency and Good Governance.



(Mr. Prasert Bunsumpun)
Chairman


(Mr. Veerasak Kositpaisal)
President & CEO

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