Message form the Chairman

Dr. Chumpol Phornprapha
Chairman

Dear Shareholders,

The Thai economy in 2024 grew by 2.5%, increased from 1.9% in 2023. Thai exports expanded by 5.4% with a value of 10.5 trillion baht, the highest record after contracting by 1.0% in 2023. Foreign tourists returned to Thailand, reaching 35.5 million, close to the record high of 39 million in 2019, which had a positive effect on the tourism industry. The recovery of the global economy, especially in the United States, which is the world's largest economy and has low interest rates, resulted in increasing the demand for many consumer goods, escalating high global inflation rates, and encouraging large capitals to relocate production bases to ASEAN countries, including Thailand. Moreover, the war between Russia and Ukraine continued to rage on since February 24th, 2022 to the end of 2024 or 1,042 days, and showed no signs of ceasing in the near future. As for world crude oil prices, the BRENT annual average price was USD 81.13 per barrel, down 1.22% from 2023, and the WTI average price was USD 77.13 per barrel, down 0.82% from 2023. Gas prices in Europe (Dutch TTF Natural Gas), which spiked up to USD 84.15 per MMBTU in August 2022, were averaging USD 15.00 per MMBTU at the end of 2024. Global policy interest rates have been trending downward. The Federal Reserve (Fed) has cut its rate three times throughout the year, totaling 100 bps, from 5.25-5.50% at the end of 2023, the highest point in 22 years since August 2007, to 4.25-4.50% at the end of 2024. The European Central Bank has continuously to cut its policy interest rate four times throughout the year, totaling 135 bps, from 4.50% at the end of 2023, the highest in 24 years, to 3.15% at the end of 2024. The Bank of Thailand has cut its policy interest rate once, 25 bps, the first cut in four years, from 2.50% at the end of 2023 to 2.25%, in order to align with the interest rate policies of global central banks.

In 2024, energy prices remained high, which affected the cost of living of Thai people. The Thai government minimized energy price subsidies after global energy prices eased in order to reduce the losses of the Oil Fuel Fund that increased from continuous energy price subsidies. However, the government has extended the cost-of-living assistance measure by fixing the price of diesel until the end of 2024 not to exceed 33 baht per liter, resulting in a decrease in the Oil Fuel Fund's losses in 2024 to Baht 77,532 million, down from Baht 111,595 million in July 2024. The government has begun to gradually reimburse loans since November 2024, which are scheduled to be repaid within 3 years. As for Thailand's agricultural sector in 2024, it was able to expand by 0.3% compared to 2023, resulting in slightly better farm income. Last year, the tourism sector was starting to recover with 35.5 million foreign tourists and 198.7 million Thai tourists. Revenue from both groups of tourists in 2024 reached Baht 2.6 trillion, an increase of 25% compared to 2023, or approximately 86% of the record high revenue in 2019 before the COVID-19 outbreak.

In 2024, motorcycle market sales were 1,708,215 units, decreased by 9.07% and was the first decline after three consecutive years of expansion. Automobile market sales were 572,675 units, decreased by 26.18%, contracting for two consecutive years. The Company has adopted more stringent lending policies to be in line with the after effect of the COVID-19 outbreak with the deteriorating quality of loans in the hire-purchase sector and the record-breaking high-level household debt issue. Furthermore, the Office of the Consumer Protection Board (OCPB) issued the announcement regarding the provision of hire-purchase businesses for automobiles and motorcycles to be contract-controlled businesses B.E. 2022, effective January 10th, 2023, and the draft royal decree for the Bank of Thailand to supervise hire-purchase of automobile and motorcycle leasing businesses, which is formerly expected to be effective in early 2024 or responsible lending and measures to solve household debt problems in a sustainable way, which is effective in January 1st, 2024 as well. With these factors, the hire-purchase and loan receivables net of the Thitikorn group were Baht 1,994.5 million decreased by 45.5%. The domestic motorcycle hire-purchase receivables were Baht 764.4 million decreased by 63.3% and automobile hire-purchase receivables were Baht 206.3 million while hire-purchase receivables in the Lao People's Democratic Republic and Kingdom of Cambodia were Baht 944.8 million or decreased by 24.7% which accounted for 47.4% of the group hire-purchase and loan net receivables. At the end of 2024, the Company Group had more than Baht 3,191.0 million in cash, or equivalent to 54.3% of a total asset with a D/E ratio of 0.1, in addition, the Company Group is ready with liquidity and can confront the rising interest rate without any problems.

Finally, I would like to take this opportunity to express our sincerest thanks to customers, business partners, investors, financial institutions, Securities and Exchange Commission, The Securities Exchange of Thailand, and shareholders for your trust and unwavering support. The dedication and experience of the management and all employees significantly contributing to the Company’s continued success and being Thailand’s leading motorcycle hire-purchase business for over 50 years. We will continue our expansion for targeting to become an industry-leading company in ASEAN countries. I am very confident that Thitikorn Group with financial stability will definitely be able to get through the crisis Lastly, I would like to wish everyone stay healthy.

• investor@tk.co.th
• (02) 310-7000
• 69 Ramkhamhaeng Rd, Huamark, Bangkapi, Bangkok 10240