Strategic Risk The rapidly changing and complex business environment may affect the successful implementation of the business strategy. GC has, therefore, set the following measures to manage various risks related to the achievement of its business objectives. Risk Factor Key Risk Management Measures Sustainable Feedstock Supply Risk The dwindling natural gases in the Gulf of Thailand and uncertainties over volumes and pr ices due to the direction of state policies have negatively impacted GC’s cash cost competitiveness. In addition to projects aimed at enhancing feedstock flexibility for olefins production, GC must also prepare guidelines or alternatives for guaranteeing its long-term feedstock security so as to ensure feedstock availability, which will enable it to generate added value throughout the production chain through quality and cost competitiveness. Mitigation measures for impacts on current business operations Closely monitor the quantity and quality of natural gases and policies related to natural gases. Perform analysis and optimization to assess the costeffectiveness of each feedstock. Measures for increasing alternatives and flexibility Seek opportunities to procure low-cost feedstocks in the long term from feedstock suppliers in the United States and explore joint investments in port facilities for exporting feedstocks from the United States. Establish olefins feedstock flexibility strategies to increase the utilization of propane in place of naphtha and enhance flexibility when other feedstocks become more cost-effective. 91 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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