Impact Management on Stakeholders in the Value Chain

TTA’s Value Chain

The Group’s Stakeholder Identification

The Group’s operations demonstrate the Group's relationship with various groups of stakeholders along with the value chain that is consistent with business operations. The Group collects data and analyzes stakeholder relationships to identify stakeholder characteristics and determine an implementation plan and approach with stakeholders, including setting up a channel for opinions hearing to understand the needs and expectations of the stakeholders. The Group can bring the opinions of stakeholders to develop and improve the Group's operations to reduce negative impacts and improve the Group's image. In this regard, the Group classifies the stakeholders into 2 categories as follows:

Primary Stakeholders

Primary Stakeholders are groups of people who gain benefits from or are affected directly by the Group’s business operations. They consist of shareholders, investors, customers, employees, suppliers, financial supporters, and communities in the area where the business operations of the Group are carried out.

Secondary Stakeholders

Secondary Stakeholders are groups of people who gain benefits from or are affected indirectly by the Group’s business operations. They include investment analysts, public sectors, and mass media.

Stakeholders Engagement Process

There are 3 steps of Stakeholders Engagement Process as described below:

Stakeholder identification and prioritization by considering 2 criteria:
- Group of stakeholders who depend on the Group's operations.
- Influence of stakeholder groups on the Group's operations.
Important involvement procedure with stakeholders:
- Determine the department responsible for engaging with each group of stakeholders. For example, the Corporate Human Resource Department will engage with the employee, while the Corporate Affairs Department and Investor Relations Department will take care of the shareholders/investors, and the Sales Department will engage with customers.
- Explore stakeholders' needs and expectations systematically by communicating and organizing participatory activities to identify issues that stakeholders are interested in and expect those issues to be addressed effectively.
- Gather information about the needs and expectations of stakeholders.
Analysis and selection of materiality
- The Sustainable Development Committee and the Sustainable Development Working Group analyze stakeholders' needs and expectations and select material topics that are consistent with the risk and opportunity impacts. In addition, these topics must be aligned with the Corporate's policies and goals.

Stakeholders Relationships

The foundation of good corporate governance is the development and maintenance of positive relationships between the Group and its stakeholders, which improves the Group's operations as a result of an analysis of stakeholders' expectations and needs. It is an important part of supporting the Group's operations to achieve the Group's goals and to encourage business sustainable business development. Therefore, effective stakeholder relationship management is a crucial factor in raising stable growth, reducing risks from any issues that can disrupt the business operation, and creating balanced mutual benefits with all groups of stakeholders.

The Group is aware of the relationship with all groups of stakeholders and commits to building trust and association with all groups of stakeholders. The Group intends to constantly deliver the best experience by applying stakeholder engagement performance when developing the Group strategic plan to prioritize the risk and impact that might affect stakeholders. The Group also encourages the participation of stakeholders through business activities and other communication channels. To prevent the risk arising from stakeholders, the Group develops the preventive plan, which includes the monitoring, measuring, and reporting of the Group’s performance for the continuous improvement of positive relationship with stakeholder, trust building, and sustainable business development.

Stakeholder Engagement Policy and Practices

The Board of Directors adheres in conducting Group’s businesses with integrity and transparency, as well as having roles and responsibilities toward society by valuing the rights of all stakeholders in the Group, whether internal or external. The Board of Directors has established guidelines in the Code of Business Conduct for directors, executives, and employees to be transparent and fair to various stakeholders. The full Group's policy and guidelines of practices toward stakeholders are available on the Company's website. (https://www.thoresen.com/en/corporate-governance/corporate-policy-documents)

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Stakeholder Engagement

Regarding the classification of stakeholders, they can be prioritized based on their influence as follows:

Stakeholders	Targets	Engagement Channels and Building Relationships	Stakeholder Expectations/ Issues of Interest	Responses in 2023
Shareholders/Investors	Regularly disclose updating material information about the Company Have transparent management, good corporate governance, and social and environmental responsibility Increase business competitiveness and operation direction Manage the short-term and long-term corporate risk	Shareholders’ Meeting at least once a year Business performance disclosure and communication via the Form 56-1 One Report and Sustainability Report Brief earnings report via Investor Relations Journal once a quarter Participation in the Stock Exchange of Thailand’s Opportunity Day once a quarter Management discussion and analysis of the financial statements through the websites of the Company and the Stock Exchange of Thailand once a quarter Quarterly investors meetings Company visits Provision of communication channels e.g., the Company’s website, E-mail, telephone, etc. Whistleblowing channels for complaints, opinions, and suggestions E-mail Mail Self-inform to Head of Internal Audit	The Company's performance, business growth, and value addition from new investment Disclosure of the progress of Company’s performance. Transparent management with good corporate governance principle Provision of good quality of products and services Environmental management and awareness of reducing global warming Business operation with responsibilities for environment, social, and governance and economic (ESG) in accordance with sustainable development guidelines Enhancement of value and safety of employees	The Company has disclosed business performance to all investors to present the overall operation and growth of the business. The Company has disclosed periodic reports such as quarterly and annual financial report, Management Discussion and Analysis (MD&A), Financial Performance Reviewed (F45-3), and 56-1 One Report, etc. The Company has disclosed non-periodic reports such as shareholders’ meetings, asset acquisition and disposition, related party transaction and Company investment, etc.
Customers	Respond to customer demand in various dimensions, as well as developing products to meet the customers’ needs Have channels for customers to make suggestions about products and services, as well as methods for obtaining advice, solutions, and complaints	After-sales satisfaction assessment form Complaint, suggestion, and feedback channels from customers such as call center, e-mail, telephone, and the Company’s website	Quality of products and services Provide efficient and timely service Products and services that serve a need and are accessible to customers of all ages Business operation with responsibilities for environment, social, and governance and economic (ESG) in accordance with sustainable development guidelines Privacy and security of customers’ data Information through social media Ability to solve problems in an appropriate and timely manner	The company has provided and communicated an after-sales satisfaction assessment to customers to continue improving the service quality. The company has communicated several complaint channels to customers for receiving suggestions, and feedback along with efficient working team and timely resolution. The company has policy to maintain the quality and delivery products on time within brand “Pizza Hut”. For food, the product will be delivered in thermally controlled bags to ensure that the product quality and taste remain high quality, when the product is delivered. The company has continuously researched and developed products under the "Pizza Hut" brand to ensure that the products distributed are safe and tasty in accordance with customers’ needs.
Employees	Understand and meet employees' needs to create a happy workplace, and continuously promote skill and capacity development Communicate directions and disclose information on various operations to keep employees informed about the Company's business activities Provide fair compensation and benefits, including proper working conditions, occupational health, and safety in operations	Communication through various channels and online systems within the Company. Employee satisfaction and engagement survey Whistleblowing channels for complaints, opinions, and suggestions. E-mail Mail Self-inform to Head of Internal Audit Portal system, We-Connect Letter, E-mail, video clip, and employees’ group chat. Annual party and annual trip for the employees of the Company and its subsidiaries MAX Evaluation	Employee benefits and remuneration Employee Retention Competency development and Career advancement Gender equality Occupational health and safety workplace Good working environment and flexibility Transparent management with good corporate governance principle Business operation with responsibilities for environment, social, and governance and economic (ESG) in accordance with sustainable development guidelines	The Company has hired and compensated all employees fairly and without discrimination based on race, nationality, religion, sex, age, skin color, disability, financial status, or family lineage. The Company has organized training courses relevant to the employees' positions and provided opportunities for career advancement and motivation through a comprehensive compensation package including salary, bonus, health insurance, welfare, a provident fund, overtime pay, increased vacation days, and rewards for loyal employees. The Company conducted an employee satisfaction and engagement survey and applied to develop the operation to meet employees’ needs. Activities to build organizational engagement
Suppliers	Enhance suppliers’ operations to create value Support and improve supplier operations to enhance knowledge and achieve the highest level of productivity Take care of the environmental and safety conditions in supplier operations Support suppliers to have knowledge, understanding and skills for safe operations Operate with honesty, transparency, and integrity, provide high-quality products and services at reasonable prices, increase business competitiveness, and provide a direction for future business growth	Supplier Registration The Company’s media such as website and investor relations journal Whistleblowing channels for complaints, opinions, and suggestions E-mail Mail • Self-inform to Head of Internal Audit Supplier Quality Assessment Form Annual seminar and meeting	Developing and promoting products and services to enhance the health, nutrition, and well-being of consumers System implementation with a defined timeline to increase tracking efficiency Business operation with responsibilities for environment, social, and governance and economic (ESG) in accordance with sustainable development guidelines Activities that increase organizational engagement and foster a positive working environment	The Company established a Supplier Code of Conduct to promote collaboration for improving and developing the environment and society. The Company communicated the Supplier Code of Conduct to suppliers for acknowledgment and compliance.
Financial Supporters	Regularly disclose an update on material information about the Company Have a transparent management and good corporate governance as well as have a social and environmental responsibility Increase business competitiveness and expand business direction Manage the short-term and long-term corporate risk	Company visits Provision of communication channels e.g., the Company’s website, E-mail, telephone, and etc.	Business conduct with more responsibilities on environmental impacts	The Company has emphasized sustainability operations that consider impacts in all dimensions and the impacts of all stakeholders. The Company always updates the information on its website to communicate accurate and up-to-date information to financial supporters.
Community	Respect community rights and take care of the environment of the surrounding community Improve the quality of life and enhance the benefits and happiness of the community and society Disclose the Company's information and operating results accurately and in a timely manner Possess knowledge and understanding of the Company's operations	Social and environmental activities Whistleblowing channels for complaints, opinions, and suggestions E-mail Mail • Self-inform to Head of internal audit	Innovation to promote sustainable community development Awareness of the environment and efficient resource utilization	The Company was continuously arranging the CSR (Corporate Social Responsibility) after process and CSR in process activities for community. The Company has addressed social issues by developing the BUDDY THAI application to prevent violence and bullying in children.
Investment Analysts	Regularly update essential information about the Company’s financial position Support information as required by investment analysts	Quarterly analyst meetings Company visits Provision of communication channels e.g., the Company’s website, E-mail, telephone, and etc.	Disclosure of the Company’s performance progress Transparent management with good corporate governance principle Business operation with responsibilities for environmental, social, and governance and economic (ESG) in accordance with sustainable development guidelines	The Company constantly updated its website information to ensure that it is up-to-date and accurately communicates information to investment analysts. The Company has disclosed periodic reports such as quarterly and annual financial report, Management Discussion and Analysis (MD&A), Financial Performance Reviewed (F45-3), and 56-1 One Report, etc.
Public Sectors	Be a good model to other companies in terms of transparent and excellent management Collaborate with government agencies and present effective strategies towards sustainable development	Business performance disclosure and communication via the Form 56-1 One Report Performance of Safety Officers report Continuous communication through phone, E-mail, and the Company’s website Whistleblowing channels for complaints, opinions, and suggestions E-mail Mail Self-inform to Head of Internal Audit	Support, promote, and develop the potential of people in society.	The Company constantly updated its website information to ensure that it is up-to-date and accurately communicates information to support public sectors. The Company has disclosed business performance to present the overall operation and growth of the business. • The Company has disclosed periodic reports such as quarterly and annual financial report, Management Discussion and Analysis (MD&A), Financial Performance Reviewed (F45-3), and 56-1 One Report, etc. The Company has complied with related laws, rules, and regulations.
Mass Media	Regularly disclose an updating material information about the Company	Annual meeting of the Company Provision of communication channels e.g., the Company’s website, E-mail, telephone, articles, news, and etc.	Improve organizational processes to meet the current trend Efficient communication	The Company constantly updated its website information to ensure that it is up-to-date and accurately communicates information to support mass media. The Company has disclosed business performance to present the overall operation and growth of the business. The Company has disclosed periodic reports such as quarterly and annual financial report, Management Discussion and Analysis (MD&A), Financial Performance Reviewed (F45-3), and 56-1 One Report, etc.

Impact Management on Stakeholders in the Value Chain