Charoen Pokphand Foods Public : Annual Review 2021

Contents

2

Message from Executives

Business Overview

6

Our Purpose

10

Milestones and Development

22

Innovation from the Heart to the Table

Our Performance

34	36
Performance	Awards and
Highlights 2021	Recognitions 2021

Management and Corporate Governance

40

Corporate Governance

50

Management Structure

54

Contact Us

7

Business Structure

12

Business at a Glance

Driving Business towards Sustainability

26

46

Risk Management

51

Board of Directors

Definition:

"The Company" in this Annual Review refers to Charoen Pokphand Foods Public Company Limited ("CPF") and its subsidiaries.

8

CPF Worldwide

14

Nature of Business

49

Capital and Shareholder Structure

52

Executives and Employees

Annual Report 2021 (56-1 One Report)

Sustainability Report 2021

2

Charoen Pokphand Foods Public Company Limited Annual Review 2021

Message from Executives

Chareon Pokphand Foods Public Company Limited and subsidiary operates fully integrated agro-industrial and food businesses, harnessing its investments and partnerships in 17 countries around the world, and beaconed by the vision of being "the Kitchen of the World". The Company aims to achieve food security through its continual innovations that deliver top quality products and services as well as new product development that elevates sublime satisfaction of 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. Our operation firmly supports the United Nations Sustainable Development Goals (UNSDGs); and ensures compliance with good corporate governance.

The Company prioritizes research and development to further advance in the innovation of nutrition and value addition to deliver products that promote health and wellness. Furthermore, the Company ensures that its distribution channels align with consumer behavior while the resources efficiency is augmented by automation. Digitization is also adopted to the operations to minimize business risks while maximizing the effectiveness. Our people are cared for to ensure their safety and quality of life and synchronously, the Company nurtures mutual growth of farmers, suppliers, and the society at large.

The year 2021 witnessed persisting challenges of businesses around the world due to the prolonged impact of the Covid-19 pandemic which dampened the market's buying power, drove further changes of consumer behavior, and demanded businesses to accelerate innovation and adoption of technology.

Amidst the turbulence, food security is one of the key engines for the world to overcome this crisis. With such acknowledgement, the Company deployed advanced measures to maximize safety of production and operating procedure while protecting our employees and family through provision of vaccines. In addition, coordination was made with the public sector of each country to provide overall care for the public as well.

The Company has extended its care to the society through its contribution to strengthen food security in Thailand as well as other countries. From 2020 to the present, the "CPF's Food from the Heart against Covid-19 Project" and "CP Merging Hearts to Fight against Covid-19 Project" initiatives have been ongoing where the Company has provided food and beverage to medical staff and those in need of assistance. Fresh food and condiments have been supplied to hospitals, field hospitals, vulnerable groups, vaccination centers, Covid-19 examination centers, community isolation centers, and more than 500 bureaus nationwide. Similar activities have been carried out in countries where the Company's footprint are located namely Vietnam,

Charoen Pokphand Foods Public Company Limited

Annual Review 2021

3

Cambodia, Lao, the Philippines, Turkey, the United States, and Russia. In 2021, the Company recorded total sales revenue of 512,704 million baht, asset value of 842,681 million baht, tax payment of 8,282 million baht. The Company's performance was impacted by Covid-19 pandemic, which resulted in lower consumption and declined prices of main products in several areas when compared with the year 2020. On the other hand, its operating costs increased from various activities to maximize the hygiene standards at workplaces and to ensure the safety of our employees and products at all facilities. The year 2021 also saw the increase of the cost of raw materials and logistics. Due to the abovementioned factors, the Company ended the year 2021 with the net profit of 13,028 million baht, a decrease when compared with the previous year.

The Board of Directors resolved to propose to the 2021 Annual General Meeting of Shareholders for the approval of 2021 dividend payment at the rate of 0.65 baht per share, comprising the interim dividend of 0.40 baht per share paid on 10 September 2021, and the annual dividend to be paid at 0.25 baht per share.

In 2021, the Company made 2 significant investments as follows.

1.) Entire business transfer of C.P. Retail Holding Company Limited, which held investment in retail business of Lotus's, and whose shares of which were held by the Company at 20%, to Siam Makro Public Company Limited ("Makro"), whereby the Company received settlement in the form of Makro's newly issued ordinary shares. As a result, the Company directly held shares of Makro at 10.21%. Subsequently, the Company participated in public offering of Makro's ordinary shares, which resulted in remaining Marko's share held by the Company at 8.85% upon completion of such placement.

2.) Delisting of C.P. Pokphand Co., Ltd. ("CPP"), a subsidiary whose common shares was held by the Company at 49.74%, from the Hong Kong Stock Exchange. Consequently, the Company directly holds common shares of CPP at 75.00% as of 18 January 2022.

On behalf of the Board of Directors, executives, and employees of CPF Group, we would like to extend our gratitude to all stakeholders for the continuous trust and support. The Company shall continue to drive business growth following our vision of being "the Kitchen of the World" in order to strengthen the 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 Chairman

Mr. Prasit Boondoungprasert Chief Executive Officer