Thai Oil : Integrated Report 2023

ABOUT THIS

REPORT

THAI OIL PUBLIC COMPANY LIMITED

Thai Oil Public Company Limited has published this corporate sustainability report in line with the international reporting standards for the 13th consecutive year. The Company has committed to disclose all material information on corporate sustainable development transparently and accurately. This report encompasses the Company's economic, social, and environmental performances between January 1-December 31, 2023.

Reporting Approach

This 2023 Sustainability Report applies the Integrated Reporting Framework of the Value Reporting Foundation. In addition, the reporting material topics have been identified through a materiality assessment process, while the management approach and performance are disclosed in accordance with the Global Reporting Initiative (GRI) Standards. The Report integrates supplementary indicators specific to the Oil and Gas industry as per GRI 11: Oil and Gas Sector on page 076-079. The Report also outlines operational achievement progress in alignment with the ten Principles of the United Nations Global Compact (UNGC) on page 079, the Task Force on Climate-Related Financial Disclosures (TCFD) on page 079, and the United Nations Sustainable Development Goals (SDGs) on page 080-084. The reporting information on environmental data, safety data, and materiality assessment process has been verified by the external verifier, with the statement of assurance on page 074-075.

Scope of Reporting

The scope of reporting has been determined by consideration of business relevance, information readiness, and impacts on core businesses, namely oil refinery business, petrochemical business, lube base oil business, power business, and other businesses. The Report covers only businesses of Thai Oil Public Company Limited (TOP), Thai Lube Base Public Company Limited (TLB), Thai Paraxylene Company Limited (TPX), Thaioil Energy Services Company Limited (TES), LABIX Company Limited (LABIX), and TOP SPP Company Limited (TOPSPP). In addition, the performance related to green products of TOPNEXT International Company Limited (TX), and Thaioil Ethanol Company Limited (TET) is reported. The reporting coverage is 96% of Thaioil Group's sales revenue.

For more information, please contact:

The 2023 Sustainability Report is available for download at

For additional information on Thaioil Group's performance beyond the scope of this Report, please refer to the 2023 Annual Report (Form 56-1 One Report) at

Sustainability Development Function,

Group Company Secretary and Sustainability Department

Thai Oil Public Company Limited

42/1 Moo 1, Sukhumvit Road Km. 124, Tungsukla, Sriracha,

Chonburi 20230
Tel:	+66 3840	8500, [phone]
Fax:	+66 3835	9019
Email:	[e-mail]
Website:	www.thaioilgroup.com

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001

MESSAGE TO OUR STAKEHOLDERS

THAI OIL PUBLIC COMPANY LIMITED

In 2023, Thaioil Group faced with several challenges arising from both domestic and global conditions. These challenges included prolonged economic stagnation resulting from fluctuations in financial markets and consumer goods prices, geopolitical conflicts in different regions worldwide, and demographic shifts towards an aging society, directly impacting overall business operations. Furthermore, there was a significant emphasis on achieving Thailand's goal of becoming a net zero greenhouse gas emissions nation by 2065, and the ongoing transition towards clean energy usage, known as the "Energy Transition," resulted in changes in consumer preferences and behaviors. In response to these challenges, Thaioil Group has adapted the business strategy to align with these factors to enhance our competitiveness and foster sustainable growth.

Mr. Bandhit Thamprajamchit

Chief Executive Officer and President

Thai Oil Public Company Limited

For over 62 years, Thaioil Group has been dedicated to developing its capacities to become the leading oil refinery company in the Asia-Pacificregion. Thaioil Group maintains a steadfast commitment to sustainable growth towards

1. 100-yearsustainable organization and plays a crucial role in driving Thailand's stable and sustainable economic growth.

Enhance Clean Environment

Engage Society

Ensure Good Governance

Thaioil Group has determined a long-term profit margin target for 2030 in accordance with global trends to reduce the impact of oil refining business fluctuations. In addition, the Company strives to achieve low-carbon and environmental-friendly business towards sustainable growth. The 2030 long-term profit margin target consists of 45% petroleum and high value product businesses, 30% petrochemical and high value products, 20% high value and other new S-curve businesses, and 5% power businesses. To achieve this ambitious target, Thaioil Group has developed a strategic plan under the concept of "TOP for the Great Future", built on the foundation of the 3Vs business strategic framework, as follows:

Value Maximization: Integrated Crude to Chemicals consists of strengthening business resilience and competitiveness by optimizing the benefits from the existing production base and extending the benefits across the value chain towards the petrochemical business and high value products.

Value Enhancement: Integrated Value Chain Management consists of being the market leader in sustainable energy, especially in chemical and high value products. The Company has focused on the high growth market in the region, such as Vietnam, Indonesia, and India, while seeking further investment opportunities.

Value Diversifications consists of building stability and sustainability in the investment portfolio through high value businesses, such as Disinfectants and Surfactants (D&S) businesses and new businesses related to global trends. In addition, the Company seeks investment opportunities in low-carbon businesses, such as biobusiness, new energy technology business, as well as businesses that can generate stable profit, such as power business.

To achieve the 3Vs business strategy and target, Thaioil Group has established business operational guidelines under the "TOP" concept, which consists of

1. Transformation transforming the organization in all dimensions to be ready for new business operations in the future

1. Operational to Business Excellence enhancing operations from "Operational Excellence" to "Business Excellence" in a sustainable manner
2. Partnership and Platform establishing a new working platform to achieve new businesses through partnership and platform

In addition to creating added value and business growth, Thaioil Group has defined a sustainability strategy that is aligned with the Company's business strategy in the Environment, Social, and

Governance (ESG) dimensions. This strategy is formulated to meet the expectations and maintain engagement of Thaioil Group's stakeholders through the 3Es sustainability strategic framework, as follows:

Enhance Clean Environment consists of the aspiration to reduce greenhouse gas emissions by 15% by 2035 from the base year in 2026 to achieve Carbon Neutrality by 2050 and Net Zero GHG Emissions by 2060.

Engage Society consists of the development of quality of life for society in line with the Thaioil Group's strategic directions by focusing on petrochemical business and innovations. The Company also places importance on strengthening relationship and developing quality of life for people in the communities surrounding the refinery area while enhancing social quality, such as education, occupation, public health system, and access to clean energy.

Ensure Good Governance consists of the integration of Governance, Risk, and Compliance (GRC) to ensure that there will be no violation of laws and regulations, and maintain transparency in the organization, to become a well-recognized organization in corporate governance. Thaioil Group also promotes corporate values among employees to be equipped with the knowledge on transparent governance and anti-corruption, including collaboration with the anti-corruption network.

With unwavering commitment to sustainable management, in 2023, the Company was recognized for sustainability assessment in the 2023 Sustainability Yearbook as the top 1% of the S&P Global ESG Score, the highest assessment level attainable, marking the eighth consecutive year of such achievement. Furthermore, Thaioil Group has been listed as a member of the Dow Jones Sustainability Indices (DJSI) 2023 for the 11th consecutive year by S&P Global, the world-class financial information provider and world-leading sustainability rater. This recognition affirms the Company's commitment and tangible practices in sustainability management, focusing on environment, social, and business aspects on an international level recognition.

On behalf of Thaioil Group, I would like to express our gratitude to all stakeholders for their unwavering trust and support. Thaioil Group strives to achieve steady business growth while adhering to sustainable development based on Environment, Social, and Governance (ESG) principles. We remain committed to upholding our systematic environmental management and business responsibility for the community and society under good corporate governance. Furthermore, we foster innovations to meet the needs and expectations of stakeholders and be responsive to the evolving business landscapes in accordance with our vision of empowering human life through sustainable energy and chemicals.

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003

TABLE OF

CONTENTS

THAI OIL PUBLIC COMPANY LIMITED

0102

Introduction

Group Overview

001	About This Report	008	About Thaioil
002	Message to Our	010	Business Model
	Stakeholders

004 Table of Contents

005 Financial Highlights

006 Sustainability Highlights

03		04		05
Navigating towards	Managing	Sustainability
Thaioil Group's
Sustainability	Appendix
Material ESG Topics
012	Stakeholders and	028	Environmental	074	Assurance
	Material Matters		Impact Management		Statement
021	Thaioil Group's	038	Climate Change	076	GRI, UNGC
	Business Strategy		Management		Principles COP,
	Outlook	049	Human Health &		and TCFD Framework
025	Sustainability		Indices
	Safety	080	SDGs Progress
	Governance

054 Innovation &

Customer	085 Survey of Readers'
Stewardship	Opinions

063 Performance Summary

004 INTEGRATED REPORT 2023

FINANCIAL

HIGHLIGHTS

THAI OIL PUBLIC COMPANY LIMITED

Sales Revenue	EBITDA		Net Profit/ (Loss)	Net Profit/ (Loss) per Share
Million THB			Million THB		Million THB		THB/ Share
505,703						15.63
459,402

		37,187					8.70
		35,453	32,668
					19,443
2022	2023	2022	2023	2022	2023	2022	2023

Total Assets	Total Equity	Dividend Payment	Market Capitalization
Million THB	Million THB		THB/ Share		Million THB

444,581 419,993

		158,657 168,312			114,752 120,069
				3.70	3.40
2022	2023	2022	2023	2022	2023	2022	2023

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005

SUSTAINABILITY HIGHLIGHTS

THAI OIL PUBLIC COMPANY LIMITED

Social Dimension

Empower social engagement to collaboratively uplift the quality of life, while being responsible to all stakeholders towards a sustainable future

Environmental Dimension

Enhance environmental management to ensure effectiveness and alignment with global trends

Intellectual Capital

218

new knowledge

gained from knowledge sharing sessions among employees from Knowledge Management (KM) Project.

Natural Capital

Participation in a government-led reforestation project to reduce carbon dioxide. The project has been operated in an area of 8,656 rai, which is expected to absorb approximately 92,800 tons of carbon dioxide equivalent by 2060.

Social and

Relationship

Capital

95%

community engagement score.

Natural Capital

Total Greenhouse gas emissions reduced by 28,003 tons of carbon dioxide equivalent through energy efficiency improvement projects.

Zero industrial waste disposal to landfills.

Manufactured

Capital

Accumulated carbon credits certified by Thailand Greenhouse Gas Management Organization (Public Organization) or TGO between 2019 - 2023 total

Intellectual Capital

6

New High Value

Products.

Empowering

2

community enterprises through the reforestation project by supporting knowledge of forest conservation, coupled with

Manufactured Human

Capital Capital

1	Zero
process safety event	lost-time injury
(Tier-1).	of employees.

No

human rights complaints.

92%

employee engagement score.

94%

Reduced dependence on external freshwater resource by replaced with desalination

37%

No freshwater withdrawal

for consumption from water-stressed areas.

1,311,046

tons of carbon dioxide equivalent.

Financial Capital

40

share of revenue from environmental-friendly products.

hiring the communities for planting and maintaining the forests. In addition, this initiative not only restores the environment but also stimulates local economy.

Financial Capital

720 million THB

in benefits gained by the Company from leveraging

employees' knowledge for business development.

employee satisfaction score.

Governance

and Economic

Dimension

Ensure the robustness

and maintain trustworthiness of good corporate governance as strong foundation for sustainable business growth

Financial Capital

No

cases or fines for non-compliance with laws and regulations, or cases of corruption and bribery.

Financial Capital

No

financial losses due to cyberattacks

impacting business operations.

Benefits gained from knowledge and innovation

for working process improvement 961 million THB.

Social and Relationship Capital

Zero

case of non-compliance with the Company's code of conduct, violation of laws and regulations, and actions that may induce corruption.

98% supplier satisfaction score.

94% customer engagement score.

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007

ABOUT THAIOIL

THAI OIL PUBLIC COMPANY LIMITED

THAI OIL PUBLIC COMPANY LIMITED

Thai Oil Public Company Limited is a leading integrated petroleum refinery in the Asia Pacific region. The Company has been operating for over 61 years, and has a modern and highly efficient production process to produce and distribute refined petroleum to primarily support the domestic petroleum demands. Thaioil is guided by the principles of Operational Excellence, as an integrated group of businesses in oil refinery, petrochemicals, and lube base. This synergy enables Thaioil to optimize and plan production for maximum efficiency, enhance competitiveness, and achieve a top quartile among refineries in the Asia Pacific region, solidifying business stability in the process.

Vision

Empowering human life through sustainable energy and chemicals.

Mission

To enrich stakeholders' well-being and deliver sustainable returns built upon innovation, technology and resilient portfolio with top class management and accountable corporate governance.

Corporate Values

Professionalism	Ownership and	Social
	Commitment	Responsibility
Integrity	Teamwork and	Innovation
	Collaboration
Vision Focus	Excellence
	Striving

Headquarter:

Bangkok, Thailand

Listed Date in the Stock Exchange of Thailand:

October 9, 2004

Registered Capital: 22,338,355,660 THB

Percentage of Shares Owned by PTT PLC.:

48%

Refinery Production in 2023: Approximately 307,000 BBL per day

112%

of nameplate capacity at 275,000 BBL per day

Domestic Distribution 29%

of total domestic finished oil demand

Locations of Operations:

Thailand, Vietnam, Singapore, Hong Kong, and Indonesia

Number of Employees: 1,936 persons

008

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009

BUSINESS MODEL

Macro Environment

At present, sustainable development has become the top priority on the current global agenda, encompassing not only business and financial aspects but also Environment, Social, and Governance (ESG) dimensions. These directions towards sustainability may impact Thaioil Group that involves technological advancements, adoption of alternative energy in lieu of oil usage, or intensification of global laws, regulations, and directives. Thaioil Group has recognized the significance of setting both short-term and long-term strategic directions to confront business risks and opportunities and foster long-term confidence and sustainable value for stakeholders. (For more details, please refer to Thaioil Group's Business Strategy Outlook chapter, Page 021-024)

Sustainable Value

Operating a business with a sustainable strategy and organizational objectives, including active participation in achieving the United Nations Sustainable Development Goals (UN SDGs), is crucial for collectively creating long-term value for both stakeholders and the Thaioil Group. (For more details, please refer to SDGs Progress chapter, Page 080-084)

THAI OIL PUBLIC COMPANY LIMITED

Outcomes to Thaioil Group

Outcomes to Stakeholders

Further details of Thaioil Group's 2023 performance are provided in the following chapters:

Financial Capital

Capitals/ Inputs

The financial resources of the Thaioil Group consist of owner's equity and liabilities, amounting to 168,312 and 251,681 million THB, respectively. In 2023, the Company incurred operating expenses of 436,164 million THB to support business operations as per the strategic plan.

Crude Oil
01Sourcing
Regarding Thaioil Group's crude oil procurement strategy, the Company has
engaged in the collaborative "One" project with PTT Public Company
Limited (PTT) and affiliated refineries within the PTT Group. This
initiative aims to maximize benefits in crude oil sourcing, ensuring
efficiency, diversity, and prompt response to the fluctuating
market. In addition, Thaioil Group places importance on
good governance practices, such as prohibiting the
use of crude oil from sanctioned countries,	05Usage &
which could impact transparency, trust

EBITDA 35,453 million THB.

215 million THB in cost saving from the energy efficiency improvement projects. No incidents and fines from non-compliance with laws, regulations, and cases of corruption and bribery.

Market Capitalization 120,069 million THB.

Net profit decreased by 40.48% or 8.70 THB per share.

Annual average of daily closing stock price decreased by 6.55% or 50.40 THB per share.

Dividend Yield decreased by 8.11%. 4,671 million THB of tax payment to the government.

Impacts on Stakeholders

• Message to Our Stakeholders (Page 002-003)

• About Thaioil (Page 008-009)

• Thaioil Group's Business Strategy Outlook

(Page 021-024)

• Sustainability Governance (Page 025-027)

• Fight Against Corruption ( )

• Sustainable Supply Chain Management ( )

Impacts on SDGs

Manufactured Natural CapitalCapital

In 2023, Thaioil Group invested in the acquisition, development, and maintenance of infrastructure to enhance production capabilities. The asset value was estimated at 419,993 million THB.

Thaioil Group acknowledges the limitations and irreplaceability of natural resources. In 2023, the Company utilized 14.9 million tons of raw materials for refining purposes, used 23.9 million m3 of water, and consumed 49.76 million GJ of energy. In addition, the Company implemented 23

	Design &		among stakeholders, and business				End of Use
		activities of Thaioil Group.
02 Development		Thaioil Group	acknowledges the
Thaioil Group has invested and adopted			environmental	and social	impacts
		stemming from its products. In an
best-in-class technologies in various			effort to mitigate these effects, the
project development, especially in the		Business	Group manufactures and distributes
energy and production	improvement
	Diversification & New Business	environmental-friendly	finished
processes and the Clean Fuel Project		products, such as low-carbon fuels
(CFP). These are highly significant as	Regarding the transition of technology towards	and biodegradable solvents. This
they enhance	safety	standards for	initiative helps alleviate the impact on
oil replacement with alternative energy
employees and	maximize the quality	the environment and society, resulting
sources, Thaioil Group acknowledges the
and efficiency of resource utilization to	in positive outcomes for both present
potential impact on revenue and growth.
create long-term value for the Company	and future generations.
In	response, the Company has elevated
in the future.
		its business strategy for 2024 - 2030 to

ensure sustainable business growth along with all stakeholders.

112% of Refinery Utilization Rate, increased by 4.67% from the previous year. The Gross Integrated Margin (GIM) decreased by 3.4% or 10.0 USD per barrel.

3.38 million tons of CO2 equivalent of greenhouse gas emissions (Scope 1), increased from the previous year.

Accumulated carbon credits from the alternative energy development projects in Co-generation power plant with a total of 1,310,492 tons of CO2 equivalent, and solar power generation projects with

Long-term returns to shareholders from investments in the acquisition, construction, and maintenance of land, buildings, and equipment.

Net freshwater consumption increased by 13.36% from the previous year.

Reduced external natural gas dependence by 464,839 GJ per year through energy efficiency improvement projects, resulted in a decrease of 28,003 tons of CO2 equivalent of greenhouse gas emissions (Scope 1).

• About Thaioil (Page 008-009)
• Thaioil Group's Business Strategy Outlook
(Page 021-024)
• Environmental Impact Management (Page 028-037
or	)
• Biodiversity ( )
• Climate Change Management (Page 038-048 or	)
• Circular Economy ( )
• Sustainable Supply Chain Management ( )

energy efficiency improvement projects, aimed at reducing reliance on natural resources.

03 Production &

Operation Processes

Thaioil Group's activities adhere to the Operational Excellence management principle, from upstream and downstream activities, contributing to the

04 Oil & Chemical

Distribution

a total of 554 tons of CO2 equivalent.

931,282 tons of CO2 equivalent of avoided greenhouse gas emissions (Scope 3) through the sale of low-carbon products compared to general oil products, which increased by 5.47% from the previous year.

Human Capital

In 2023, Thaioil Group had 1,936 employees to support the organization's growth, alongside an investment of 349 million THB in employee development and training.

creation of long-term value. Besides, the operation processes are supported by well-planned production

processes which are systematically linked from the production to the processing of petroleum by-products into High Value Products (HVPs) for further commercial purposes.

The fuels and chemicals produced by Thaioil Group are distributed domestically. The Company aims to create value in the oil distribution process

by continuously engaging with customers to meet customers' expectations

and market demands for shared value creation.

Employee turnover rate decreased from 4.93% to 3.62%. Employee engagement score increased from 89% to 92%.

351 average hours of employee training and development per person per year.

4,366 million THB of employee welfare. 0.32 cases per million hours worked of Total Recordable Injury Frequency Rate (TRIFR) of employees and contractors.

• Human Rights ( )
• Human and Organization Development (	)
• Human Health & Safety (Page 049-053 or	)

Social and Intellectual CapitalRelationship Capital

Thaioil Group believes that engaging and maintaining relationships with stakeholders are crucial for sustainable growth. In 2023, the Company supported community development projects and made donations amounting to 221.76 million THB.

The employees of Thaioil Group, custodians of the organization's knowledge, strive to achieve operational excellence, exceed customer expectations, and cultivate an innovative culture to enhance key work processes. In 2023, the Company supported 17 million THB in investment and research and development.

Outputs

Products

307,000 barrels of	2,426 GWh of	93,204.24 tons of
crude oil refining	electricity generation.	environmental-friendly
capacity per day.		products (TDEA,
	148,951 tons of	TRAE & AROS).
609,000 tons of	Linear Alkylbenzene
Aromatic.	(LAB).	30,093.82 tons
211,000 tons of	63.12 million liters	of green solvent.
lubricant oil.	of Ethanol (TET).

Emission of waste

from production process

Greenhouse gas emissions (Scopes 1 and 2): 3.38 million tons of CO2 equivalent.

14,273 tons of waste generation.

No industrial waste disposed to landfills.

20.05 million m3 of treated wastewater.

Community engagement score decreased from 95.85% to 95.19%. Customer engagement score decreased from 95% to 94%. Supplier satisfaction score 98% maintained from the previous year.

The innovation level of Thaioil Group is at level 3 out of 5 levels.

6 new High Value Products.

No financial loss from cyberattacks.

42,430 people, benefiting from the services provided by Thaioil Group's Health and Learning Center.

911 employees volunteered to engage with the community, dedicating a total of 7,488 hours.

Employees are equipped with skills and knowledge suited for global transformation through knowledge-sharing initiatives via internal activities and publications, such as the TOP Innovation Newsletter, and the Thaioil Innovation Awards, etc.

• Innovation & Customer Stewardship (Page 054-062
or	)
• Human Rights ( )
• Human and Organization Development (	)
• Corporate Social Responsibility ( )
• Human and Organization Development (	)
• Innovation & Customer Stewardship (Page 054-062
or	)
• Digital Transformation ( )

Shareholders/ Creditors/ Financial Institutions

Government and Related Public Agencies

Customers

Community/ Society

Employees

Suppliers/ Contractors

010

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011

STAKEHOLDERS AND MATERIAL MATTERS

THAI OIL PUBLIC COMPANY LIMITED

Stakeholder Engagement

Maintaining a good relationship with stakeholders is crucial in creating long-term business value. Thaioil Group has established an internal function to maintain continuous communication with each stakeholder group. This aims to ensure stakeholders' perspectives and expectations regarding the Company's operations, ultimately enhancing the efficiency of Thaioil Group's performance.

In this regard, Thaioil Group has identified stakeholders by analyzing their involvement throughout the value chain, from crude oil procurement to the disposal of post-utilization products, through the Company's assessment of the mutual impact and influence, as depicted in the diagram below.

STAKEHOLDERS IDENTIFICATION ALONG THE VALUE CHAIN

Crude Oil	Production	Production	Product	End-of-use
Sourcing	Process	Distribution	Usage

Suppliers : Suppliers of raw materials Society : People who may be affected by distribution process

Employees : Operators	Customers :	Society : Product users	Suppliers :
in the refining process	People who purchase		Waste collectors for
Contractors : Operators	or use the products		waste disposal
in the refining process	Government Agency :		Customers :
Government Agency :	Regulators who establish		Waste collectors for
Regulators who establish	rules, regulations, and		transforming waste into
rules, regulations,	standards of quality		value-added products
and standards for	controls for petroleum		Society : People who
manufacturing and	product		may be affected by
business practices			air pollutants and
Community : People			other wastes
who may be affected
by business activities

Shareholders: Financial capital providers

From the above diagram, Thaioil Group has categorized stakeholders into six main groups and established stakeholder engagement approaches for each group of stakeholders. Since the COVID-19 pandemic, the engagement significantly altered the frequency and approach of communication and interaction towards a more predominant online format, as depicted in the table below.

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