EPG Unveils FY25/26 Business Strategy (April 25- March 26)

Dr. Chalieo Vitoorapakorn, Deputy Chief Executive Officer of Eastern Polymer Group Public Company Limited (EPG), a leading global manufacturer and distributor of polymer and processed plastic products, today announced that global economic trends face mounting challenges, particularly from geopolitical conflicts and intensified trade policies leading to trade wars. Thailand's economy continues to rely on tourism recovery and private consumption growth while managing risks from both external and domestic factors. The company is prepared to navigate this highly volatile and uncertain environment.

For fiscal year 25/26 (April 25 - March 26), EPG will focus operations on leveraging its innovation and technology strengths to enhance global market competitiveness. The company has intensified implementation of its "USE" policy framework (U: Utilization S: Save E: Efficiency) to lower operational expenses and improve operational efficiency. EPG exercises disciplined liquidity management, maintaining strategic capital allocations to ensure operational continuity and enable investment in future growth opportunities, with a revenue target of THB 13.8 billion and gross profit margins of 30-33% across its three core business segments.

Thermal Insulation Business: Under the Aeroflex brand, the division targets 5% sales growth driven by premium-grade thermal insulation products. Marketing efforts will focus on Thailand, the United States, and Japan, including specialized products for Ultra Low Temperature Insulation industrial applications and Air Ducting systems, with expanded U.S. market penetration. Aeroflex insulation addresses growing global demand for energy-saving solutions and temperature control across residential and industrial sectors, aligning with emerging energy and environmental megatrends. Aeroflex recently launched its innovative AERO-ROOF insulated metal roofing solution, developed through strategic partnerships to serve construction customers prioritizing energy efficiency and green building standards.

The accelerated U.S. manufacturing reshoring policies, combined with major infrastructure investments including the Stargate project and strategic Middle East partnerships, continue driving investment capital flows into the American economy. These structural shifts create significant opportunities for infrastructure development and high-efficiency energy industries, positioning Aeroflex USA Inc., the company's U.S. subsidiary, strategically with products meeting both public and private sector demands while benefiting from government policy support and funding.

Automotive Parts and Accessories Business: The Aeroklas brand anticipates a 5% sales decline amid the global automotive industry slowdown. Aeroklas continues collaborating with leading automotive manufacturers to develop lightweight, energy-efficient parts and accessories for both internal combustion engines (ICE) and electric vehicles (EV). The division emphasizes material innovation, design advancement, and sophisticated manufacturing processes to reduce costs and production timelines while supporting expansion in challenging business environments.

Australian operations focus on cost control, new product development, and distribution channel optimization to support regional business recovery.

South African operations concentrate on supply chain development to strengthen domestic production and sourcing capabilities—a critical initiative to address existing operational challenges and restore operational stability.

Plastic Packaging Business: The EPP brand is expected to maintain revenue level through continued innovation in food and beverage packaging featuring contemporary designs that reduce costs without compromising quality. EPP utilizes high-speed automated production machinery to maximize manufacturing efficiency while elevating packaging quality standards. The division continues developing paper-based packaging alternatives to meet stringent international market safety requirements and regulations. EPP's competitive advantages include multiple certifications (TIS, GMP, HACCP, BRC, and FSC), establishing customer trust as a preferred plastic packaging manufacturer while maintaining continuous cost management efficiency.

Joint venture operations in thermal insulation and automotive parts and accessories sectors across Thailand, India, and China have experienced growth moderation consistent with industry trends.

Dr. Chalieo announced EPG's THB 483 million investment budget for fiscal year 25/26, allocated for product development, machinery additions, and production line improvements. The Board of Directors has resolved to propose an annual dividend payment of THB 0.08 per share (totaling THB 224 million) to shareholders at the 2025 Annual General Meeting scheduled for July 23, 2025. Upon shareholder approval, the record date for dividend entitlement will be August 4, 2025, with dividend payments by August 20, 2025.

"EPG remains confident that our innovation strength, strategic adaptability, and global market expertise will enable all three core businesses to achieve sustainable growth in fiscal year 25/26 despite macroeconomic challenges," Dr. Chalieo concluded.

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