Dear Shareholders,

The ongoing COVID-19 situation worsened in 2021 and the stricter pandemic measures to curb the spread of the virus have resulted in lasting global economic and social impacts. Thai Beverage Public Company Limited ("ThaiBev" or the "Group"), has been able to maintain stable operations by nimbly adjusting our business strategies in response to the new normal. During the year, we were impacted by COVID-19 control measures, particularly the extended closure of key distribution channels such as restaurants and entertainment venues. As a result, revenue for the year ended 30 September 2021 declined by 5.1% year-on-year ("y-o-y") to Baht 240,543 million. Nevertheless, we were able to register a 4.9% increase in net profit to Baht 27,339 million, due to the effective adjustments in business operations and cost optimization.

We are delighted to report that our spirits business in 2021 remained resilient and reported sales revenue amounting to Baht 115,052 million, thanks to a diverse portfolio of spirits which is typically consumed off-premise. Despite being directly impacted by the temporary closure of entertainment venues, as well as the interim ban on alcoholic beverage sales in restaurants and bars, the spirits business registered a higher profit margin, with net profit stable at Baht 22,138 million due to our active cost control measures. In addition, we continued with our efforts to strengthen our leadership position in the spirits segment. For example, we revamped Hong Thong's packaging to project a more premium and modern image to emphasize its position as the No. 1 brown spirit in Thailand. We are pleased that SangSom, Blend 285 Signature, and Meridian Brandy have achieved satisfactory growth this year despite COVID-19, and are also proud that Kulov Vodka has grown to become the No.1 in the vodka market in Thailand. Meanwhile, Grand Royal Group, the largest whiskey player in Myanmar, continued to record strong operating results and a stable cash flow.

The closure of entertainment venues and the ban on alcoholic beverage sales in restaurants in Thailand, as well as the more stringent lockdown measures in Vietnam, resulted in beer sales revenue decreasing by 7.2% y-o-y to Baht 99,157 million in 2021 and net profit decreasing to Baht 3,119 million. However, net profit of the beer business in Thailand grew due to a decrease in advertising and promotion expenses. We mobilized the production teams in our breweries to ensure uninterrupted beer production to secure full product delivery. In addition, we pivoted our focus towards off-premise channel to cope with pandemic-driven restrictions in the on-premise channel. We also adopted the use of digital technology in our business development process to strengthen our competitiveness. In Vietnam, we continued to prioritize brand building and effective cost management.

Sales revenue generated by our non-alcoholic beverage business amounted to Baht 15,205 million, a decline of 6.6% y-o-y. However, prudent cost management and control efforts resulted in a 51% increase in net profit from normal operations to Baht 548 million in 2021. During the year, due to the prolonged impact of the COVID-19 preventive measures affecting on-premise channels, we focused on retail outlets, especially those in communities, so that consumers could have easier access to our products. We also utilized digital technologies to enhance sales efficiency through online platforms.

Our food business was directly impacted by the closure of shopping malls and restaurants in 2021 that was implemented to prevent the spread of COVID-19. To manage the situation, we adjusted our business plan to accommodate changes in consumer behavior and accelerated the expansion of the sales channels of take-out and delivery. Furthermore, we adjusted our restaurant models and sales channels to reach as many consumers as possible, developed new products and created new menu, and implemented cost control measures. Nevertheless, the lower demand resulted in a 14.4% decrease in sales and a net loss of Baht 488 million in the food business.

ThaiBev has not only adapted itself to ensure business continuity but also emphasized the health and safety of its employees. We also assisted our business partners and the wider society in combating COVID-19 challenges together. We have supported all sectors by taking actions and coordinating with public health agencies as well as medical personnel. These include distributing alcohol-based cleaning products, surgical and N95 masks, and providing COVID-19 group insurance coverage for employees, medical personnel, and partners nationwide. In addition, we donated COVID-19 vaccine refrigerators and provided medical equipment, drinking water and food to hospitals. We also set up COVID-19 test and vaccination centers to alleviate and support the governmental sector.

We are committed to operating our business sustainably in a socially and environmentally responsible manner as we pursue business growth and stability. This year, we are proud that ThaiBev has retained its status as a member of the DJSI World and DJSI Emerging Markets families for the fifth and sixth year respectively. We are also recognized as the Indices Leader in the Beverages Industry with the highest sustainability score for the fourth consecutive year.

I would like to express my gratitude towards all shareholders, customers, partners and parties from all sectors for their constant support and unwavering trust in us. I would also like to express my appreciation to the Board of Directors, the senior management team and all our employees for their determination and dedication to overcome the challenges we faced throughout the year. We will continue to do our best to deliver greater value to all our stakeholders, while adhering to the highest environmental, social and governance standards.

Thapana Sirivadhanabhakdi

President and CEO