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Message from the Board of Directors

In 2021, COVID-19 continued to disrupt the global economy compounded by the rising energy and raw material costs, and the extreme weather events. Nevertheless, SCG stayed the course and achieved satisfactory growth, thanks to the rapid transformation of all its business units to address three megatrends: integrating ESG into business operations, leveraging digital transformation to answer emerging customer needs, reduce production cost, grow e-Commerce, and developing solutions to accommodate trends toward wellness and improving quality of life.

  One Way Out is Adjusting to Change  

The careful assessment of the situation coupled with swift adjustment and timely creation of emergency response plans resulted in the strong operating performance of SCG. The Company’s operating results for 2021 recorded the revenue from sales of 530,112 Million Baht, an increase of 33% from the previous year, attributable mainly to the improved performance of all businesses, particularly the higher price and sales volume of chemical products. Profit for the year amounted to 47,174 Million Baht, up 38% from the previous year due to the improved performance of the Chemicals Business and SCGP (Packaging Business). In 2021, SCG’s revenue from sales of High Value Added (HVA) Products & Services totaled 182,510 Million Baht, representing 34% of total revenue from sales. Net debt to EBITDA ratio stood at 2.6 times while cash flows were stable from strong operating results of SCG’s core business units. At the 2022 Annual General Meeting of Shareholders, the Board of Directors resolved to propose a full year dividend payment of 22,200 Million Baht, or 18.50 Baht per share, representing a payout rate of 47% of profit for the year according to the consolidated financial statements. This comprised an interim dividend of 8.5 Baht per share, and a final year-end dividend of 10 Baht per share.


  Achieving Net Zero Target in 2050 by Increasing Proportion of Alternative Energy and Investment in Deep Technology  

Leveraging ESG 4 Plus to Achieve Long-term Sustainability

SCG is resolved to move forward business under an ESG framework, developing the ESG 4 Plus target to “Set Net Zero – Go Green – Reduce Inequality – Embrace Collaboration” with adherence to fairness, transparency, verification in line with the UN Sustainable Development Goals (SDGs) and the circular economy principles as follows:

  1. Set Net Zero the Company strives to increase the proportion of alternative energy use and developing low-carbon businesses in addition to driving research and sustaining investment in deep technology and startups. The goals are to reduce 20% greenhouse gas emissions by 2030 and achieve a Net Zero target by 2050
  2. Go Green SCG is committed to developing environmentally-friendly innovations and promoting clean energy business, both domestically and overseas. The target is also set to increase the proportion of the SCG Green Choice label products that are friendly to the environment.
  3. Reduce Inequality SCG has played an increasingly active role in reducing social inequalities through developing skills and occupations that are in demand among those who lost their jobs due to COVID-19.
  4. Embrace Collaboration SCG resolves to drive ESG through collaboration with organizations at national, ASEAN, and international levels to materialize the goals.

Digital Transformation: The Key to Win Customer’s Heart

SCG has built multiple biggest digital network platforms that enable efficient, fast, and convenient distribution management. Chief among them are Prompt Plus that provides services to over 9,000 building material stores across the country and Rak-mao, an e-Procurement platform that allows more than 50,000 small- and medium-sized contractors and construction project owners nationwide to manage even better costs efficiency. Big Data Analytics and AI have been adopted to analyze customer needs to develop new solutions continually. Furthermore, SCG has leveraged digital transformation to enhance work and production efficiency such as Digital Twin technology that helps improve existing manufacturing processes, and Angel Maintenance system that helps manage maintenance and reduce manufacturing downtime for maintenance operations.

Solutions for Wellness and Better Quality of Life

During the COVID-19 pandemic, consumers have paid more attention to health and wellness. In response, SCG has accelerated the development of solutions to address the megatrend toward wellness and improving quality of life. Central to these are medical plastic innovations, Smart Building Solution that helps improve air quality and save energy with IOT technology, Ultra Clean Wall Solution that keeps a room clean and safe with SCG Bi-Ionization Air Purifier killing bacteria and viruses in the house and building, and Water Soluble Laundry Bag that reduces the risk of transmission of COVID-19 from the clothes of patients with infections.

Collaboration and Network with All Sectors to Drive the ESG Agenda

SCG has made a tangible move to drive the ESG collaborative network to a broader scale. In 2021, SCG announced its commitment through the “ESG Pathway Let’s Start Together for Us and for Our World” event, demonstrating its stance to tackle the global warming issue in collaboration with all sectors in the society. The Chemicals Business, for instance, joined hands with Unilever to develop environmentally-friendly packaging in accordance with the circular economy principles by transforming post-consumer plastic into recycled HDPE resins (rHDPE) for the first time in Thailand. The Business also collaborated with several international organizations such as Alliance to End Plastic Waste (AEPW) to solve the problem of plastic waste sustainably and The Ocean Cleanup to tackle the issue of plastic pollution in the rivers and oceans. At the other end, the Cement and Building Materials Business joined forces with Global Cement and Concrete Association (GCCA) to reduce and trap greenhouse gas emissions in concrete for the cement industry and with partners in the construction industry under the Circular Economy in Construction Industry (CECI) to reduce construction waste and reuse it as much as possible.

For its part, SCGP (Packaging Business) in cooperation with Thailand Post and Government Pharmaceutical Organization organized the “reBOX” campaign to recycle 220 tons of unused paper boxes into 300,000 surgical masks for hospitals in need.


  Reducing Inequality and Creating Job Opportunities Across ASEAN  

To reduce social inequalities among the unemployed as a result of COVID-19, SCG has carried out various skills development programs in response to the market demand. Over 3,000 individuals have taken part in the programs, and the projects will continue to reach a skilled workforce of 20,000 by 2025. Chief among the programs are training truck drivers by the SCG Skills Development School, developing skills for home renovation handymen by Q-Chang, and processing goods and creating sales from e-Commerce and offline channels under the “Power of Community” project. Moreover, the “Learn to Earn” project by the SCG Foundation is dedicated to supporting those wanting to develop their careers as nurse assistants, dental assistants, and elderly caregivers. Added to this is providing knowledge about community water management to secure water for consumption and irrigation, allowing the community to increase crop yields and generate steady income through the “No Drought, No Poverty” project and through Kubota Smart Farming. For other ASEAN nations, SCG has continually provided scholarships to youths to pursue their careers. This contribution helps produce high-demand professionals such as doctors, nurses, engineers, and teachers.

Apart from this, SCG has continued to develop and donate COVID-19 innovations in Thailand and ASEAN with a total value of 470 Million Baht such as Modular ICU units, Modular X-Ray units, Negative/Positive Pressure Isolation Chambers, over 100,000 SCGP Paper Field Hospital Beds, and Bathroom Mobile units. The SCG Vaccination Center has also provided vaccination services to more than 250,000 people.

Realizing that the Company has roles and responsibilities to operate business and grow alongside strong society and sustainable environment, SCG pledges to integrate the ESG framework in its business operations in Thailand, ASEAN, and on an international scale. To that effect, the Company is poised to collaborate with all sectors to materialize the common goals with adherence to fairness and transparency in its operations to pass on a better and sustainable world for future generations.


Skills Development Program Reaching 3,000 Individuals in 2021, and 20,000 Skilled Workforce is Targeted by 2025

The Board of Directors would like to express its sincere gratitude to all shareholders, debenture holders, joint venture partners, suppliers, contractors, customers, and all other relevant parties including domestic and international financial institutions for their continued contributions and support toward SCG. This gratitude also extends to all SCG employees for their hard work, dedication, and agility that have enabled SCG to weather the crisis and grow robustly. SCG pledges its commitment to creating innovations and solutions to address customer demand along with contributing to sustainable society and environment for many years to come.

Bangkok, January 26, 2022

Air Chief Marshal Satitpong Sukvimol
Roongrote Rangsiyopash
President & CEO