Dear Shareholders,

2023 was a year of challenges, both economic slowdown and other unforeseeable factors, for the retail, wholesale, and service sectors. The Company’s Multi-Format and Multi-Category portfolio has strengthened our business to be resilient and agile amid all situations. When coupled with the efficiency in cost management and expense control, the Company concluded the year with a healthy growth with a recorded Total Revenue of 248,688 million baht and solidly uphold its financial stability resulting in a Net Profit of 8,523 million baht. This year, the Company has been rated “AA-”, stable outlook, the highest rating in retail industry by TRIS Ratings. This reinforced the Company’s leadership position in the retail and wholesale businesses in Thailand, Vietnam and Italy and signified the Company’s focus on paralleling operational growth and upgrading all sectors to mutually grow sustainably.

Driving towards Security, Prosperity, and Sustainability alongside All Stakeholder Groups

The Company has reaffirmed its commitment to Green & Sustainable Retail, positioning itself as the Asia’s exemplary retailer of sustainability. The Company upholds responsibility across three dimensions namely Environment, Social, and Governance (ESG) via its CRC “ReNEW” strategy. It places a strong emphasis on addressing the world’s climate crisis and pursues the goal of achieving net zero greenhouse gas emissions by 2050. Its tangible operations include:

1. Reduce Greenhouse Gases: Using renewable and clean energy, the Company has been utilising 142 solar panels systems and charging stations across its 62 department stores that can simultaneously support up to 793 vehicles. In addition, with 22 electric trucks for logistics and the use of energy-saving equipment such as refrigerators, chiller bulbs, and air conditioners already installed, the Company sets out to actively reduce greenhouse gas emissions, with the goal to achieve 50% emissions reduction by 2030.

2. Navigate Society Well-Being: By enhancing livability and raising quality of life through creating jobs and supporting the community products made by more than 100,000 families. The Company also aims to increase the customers’ satisfaction rate to 95% by 2030. In addition, it seeks to promote diversity, boost equality, and curb social inequalities by hiring over 1,000 elderly and physically disabled employees.

3. Eco-Friendly Product and Packaging: The Company promotes eco-friendly products and packaging through the distribution of its organic, vegan, health related, and eco-friendly products at over 76 green stores and health related stores. In addition, the Company also supports the use of recyclable and eco-friendly packaging, in which currently accounted for 28% of the total packaging usage. The Company targets to use 100% eco-friendly packaging by 2030.

4. Waste Management: The Company has managed waste with efficiency by integrating the Circular Economy principles. Food waste, in particular, has been managed throughout the value chain. Before becoming waste, food surplus that can still be consumed will be shared to vulnerable groups or put in “Surprise Bags” to sell at promotional prices. Meanwhile, food waste will be effectively turned into fertilizer. Some of excess food also goes to pet-snack manufacturing process, which provides insect-protein products. Used plastic bottles, on the other hand, are recycled into blankets for people in need. The Company, also encourages customers to bring their own fabric bags. It has also promoted proper waste segregation across all sectors in pursuit of the goal to reduce waste for landfill by 30% within 2030.

Thanks to its commitment to good corporate governance, The Company has won widespread recognition at both national and international levels. For example, it has won Sustainability of the Year from Retail Asia, a registered member of the Dow Jones Sustainability Indices - World Index (DJSI World) and Dow Jones Sustainability - Emerging Market Index (DJSI Emerging Market) and achieved “AAA” or the highest rating from SET ESG Rating 2023. Moreover, it has received Commended Sustainability Awards from SET Awards 2023. Importantly, the Company has earned the “excellent” recognition or “5-Star” on the Corporate Governance Report of Thai Listed Companies (CGR) Rating of 2023 for three consecutive years.

Pursuing New-High Business Growth, Proactively Entering Wholesale Market

In 2023, uncertainties prevailed to the point that the overall situation was not favorable to business operations. Yet, the Company’s DNA allowed it to adjust fast and grow its core businesses continuously, for example, the launched of Robinson Lifestyle Center’s Chalong branch in Phuket and Central Westville in western Bangkok. New records were also scored for two of its core businesses, Thaiwatsadu achieved its highest expansion of 14 new branches in the past year, underlining its status as Thailand’s DIY Home Retailer Leader, while Rinascente department stores in Italy, celebrated its historic record-breaking sales of EUR 1,000 million and continued to improve its branches to response to customers’ and tourists’ needs. In addition, the Company has spread its wing to new business by fully stepping into wholesale industry with the launch of “GO Wholesale” or food wholesale business. In the fourth quarter of 2023, four GO Wholesale branches were launched. They were Srinakarin Branch, Chiang Mai Branch, Amata Nakorn Branch, and Patttaya Branch. Beyond our expectation, GO Wholesale has received positive feedback and warm welcomes from customers. With this, GO Wholesale is set to serve as the Company’s new growth engine. As for the businesses in Vietnam, the Company continued to pursue growth by strengthening GO! Hypermarket, GO! Mall, and go! supermarket to expand its Food businesses to cover the whole Vietnam. In this regards, Vietnam Report has recognised Central Retail Vietnam as Vietnam’s No. 1 retailer for three consecutive years. Such recognition underlines the Company’s strengths as Vietnam’s biggest foreign retailer. The Company has held the biggest market share in Vietnam’s Hypermarket and Family Mall. Aside from pursuing its business growth, the Company has consistently placed importance to employee care to ensure its staff can prosper alongside its businesses. The Company seeks to be ‘A Great Place to Work’, creates happy workplaces, and become an employer of choice. To date, it has already won international awards in the field such as Best Companies to Work for in Asia from HR Asia and Global Best Employer Brand Awards 2023 from the Employer Branding Institute and World HRD Congress for two consecutive years.

Boosting Growth to Fly High in Year of Dragon

In 2024, the Company aims to achieve leading excellence and advancing sustainability while embracing resilience. It will continue to be flexible, agile, and adaptive as it carefully operates its businesses in the face of opportunities and risks. It is determined to move ahead with stability despite economic turmoil. With the determination to strengthen its core businesses, the Company will continuously pursue business growth for example, the Company will renovate its Central Flagship Store, Central Chidlom into Southeast Asia’s New Luxury Landmark. In addition, the Company will move forward with the expansion of Thaiwatsadu and GO Wholesale. In addition, the Company is committed to operating its businesses in accordance with CRC Care philosophy. It will foster business growth while driving all sectors under its care across seven dimensions, economy, customers, partners, employees, communities, the environment and corporate governance for all to grow sustainably together. On this occasion, on behalf of the Company’s Board of Directors, we would like to express our sincere gratitude to our shareholders, customers, suppliers and investors for their constant trust in and support for Central Retail. The Company will continue to strive to be the Platform of Trust for all sectors and mutual growth. We would like to also extend an appreciation to our employees of all levels for their dedication to delivering the best experience to customers and enabling the Company to achieve solid and sustainable success.