56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited 1.1.1 Policies and Overview of Business Operations The Company operates an investment business and is the parent company (or holding company) of Thanachart Group which its vision is to “be the parent company of a financial conglomerate which gives appropriate returns to all groups of stakeholders in a sustainable manner”. On the other hand, its subsidiaries continue to espouse the philosophy of the customer-centric strategy in order to develop the products and services that meet the needs of each customer group and to deliver good experience to customers through the use of the products and services offered by the Group’s member companies. Moreover, the Company still has investment in commercial banking business. In particular, it has an equity stake in TMB which was merged with TBANK at a level which allows the Company to participate in the conduct of their business affairs. The Company will also continue implementing the policy which covers all aspects of auto hire purchases through TTB-the leader in auto hire purchase business which places emphasis on hire purchases for both new and used cars as well as cash your car loans. The Company also has an equity stake in THANI which places emphasis on hire purchases for trucks. As regards the overall business operations in 2021, operating results of Thanachart Group declined, primarily due to the fact that in the first quarter of 2020, the Company recognized a gain of about 3 billion baht from selling its investment in AJT, which was a special one-time gain. As well, the performances of the associate companies including TTB and MBK which were in the commercial banking business as well as shopping center and hotel businesses continued to be adversely impacted directly by the state’s restrictive infection containment measures. In case the special gain was excluded, performance of the Company and its subsidiaries registered a growth. This was mainly due to the performances of all the Company’s subsidiaries which were relatively strong. Furthermore, in 2021 the Company started using the excess cash of about 10 billion baht from business restructuring to make investments for the purpose of generating additional return to the Company. Among others, these investments included the establishment of T-Plus which offered asset-based financing services as well as additional investments in TTB, THANI, MBK, and MBK LIFE. As for the direction of business operations in 2022, the Company continues to maintain its current shareholdings in the various companies and support the business operations of all the subsidiaries, ensuring that their financial positions are stable. As well, the Company will consider making new investments in a proactive manner, not only in the expansion of business networks of the Group’s member companies but also in the conduct of businesses in which it has expertise. The purpose is to generate an appropriate return to shareholders further in the long term. In 2022, Thanachart Group will adhere to the above policies and business strategies. It aims to achieve the objectives of growing in a sustainable and stable manner and producing appropriate returns for all the stakeholders concerned. On the other hand, in order to achieve such objectives, good corporate governance is required and it is also necessary to implement in parallel the activities related to sustainable development and corporate social responsibility. As a result, it has put in place the following practice framework for the conduct of business affairs under the principles of good corporate governance, sustainable development and corporate social responsibility. 1. To compete in a morally responsible and ethical manner, achieving a good performance while taking into account both short-term and long-term effects. 2. To operate its businesses by respecting and being responsible for its shareholders and stakeholders. 3. To adhere to the business operations which care for the society and development or reduced the negative impacts on the environment. 4. To be able to make adjustments amidst changes in factors. Overview of Business Operations On 3 December 2019, the Company implemented the following: 1) purchased the shares of certain companies in the Group from TBANK in line with the business restructuring plan, 2) sold all its ordinary shares of TBANK to TMB, and 21
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