2. Ultra Clean Fuel (UCF) Project To support the government’s new emission standard and to produce Euro 5-compliant diesel as well as to improve IRPC’s competitiveness in domestic and international markets that require higher quality diesel. The Board of Directors has approved the Final Investment Decision (FID) in July 2021. The project is currently under construction and expected to be completed by Q1 of 2024. 3. Project to increase the proportion of high value products The company has set the target to increase the proportion of Specialty Products in its product portfolio to 60 percent in 2030. In 2023, the company accomplished its goal to raise the share of Specialty Products to 33 percent. The company is also implementing 4 projects to develop Specialty Products, which is at a stage where the production process is being upgraded and expected to be completed by 2024 and 2025. The projects consist of the HDPE Pipe 100RC project for producing underground water transportation pipes, the PPR (Polypropylene Random Copolymer) project for producing plumbing pipes with high durability, the PP spunbond expansion project, and the PP meltblown expansion project. 4. Project to produce nonwovens IRPC has established Innopolymed, a joint venture between the company holding a 60% stake and Innobic (Asia) with 40 %, to build a Nonwoven fabrics factory, to gain entry to the Medical Consumables market. The factory became operational in 2022. 5. IRPC Business Innovation Accelerating Program This is a project where the company focuses on creating new businesses based on internal research and through collaboration with external players to reach commercial scale. Efforts will be made to build an ecosystem to pave the way for long-term growth. Product groups covered by this project include agricultural plant nutrition products, ZnO, Silver Nano for use as a disinfectant, special grade PPR pipes, Meltblown Fabric and Waste Collector. 6. Asset development project This project aims to develop the company’s assets that do not currently generate income, such as vacant land or bulk ports, to find revenue-generating opportunities through joint investment with business allies with expertise. At present, negotiations and feasibility studies of projects are already underway. Financial Strategies IRPC aims for the efficiency in financial management, namely reasonable and suitable financial structure, funding and financial costs, that is able to support the company’s operations and investment projects. This also includes complete, correct, and up-to-date information disclosure to shareholders, analysts, investors, financial institutions, and the general public on a regular basis. The major financial strategies in 2023 are as follows: Short-term Loans: • Renewal of the loan agreement between IRPC and PTT Public Company Limited for efficient management of financial liquidity between companies in PTT Group, with a borrowing loan limit of Baht 10,000 million and Baht 1,500 million in lending amount. • Procurement of a credit line in the form of Domestic Letter of Credit (DLC) in the amount of Baht 29,840 million. Procurement of financial derivatives Procurement of financial derivatives is one way of structuring foreign-currency finances with loans/ debentures/ derivatives in order to balance the foreigncurrency profit (Natural Hedge). This includes risk management to mitigate interest rate risk through interest rate swaps between floating rates and fixed rates to help the company efficiently manage interest rate costs. 92 Structure and Business Operations of IRPC IRPC Public Company Limited
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