Management Discussion and Analysis Quarter 1/2025

LOXLEY/CS/009/2025

-Translation-

15 May 2025

Subject: Clarification on the change in Net Profit in the Consolidated Financial Statements exceeding 20% compared to the same period of the previous year of Loxley Public Company Limited for the Quarter Ended 31 March 2025.

To: President

The Stock Exchange of Thailand

Loxley Public Company Limited ("the Company") has submitted the consolidated financial

statements for the quarter ended 31 March 2025, which could be summarized as follows:

According to the table presented above, the operating performance for the first quarter ended 31 March 2025 resulted in revenue of 2,712 million Baht and a net profit of 64 million Baht, changed more than 20% from the previous year. Details of changes could be summarized as follows:

Revenue from sales of goods and rendering of services for the three-month period ended 31 March 2025 amounted to 2,712 million Baht, representing an increase of 393 million Baht or 17% compared to the same period of the previous year. This growth was primarily driven by the Trading Business Group, which recorded revenue of 1,065 million Baht, an increase of 24% year-on-year. The increase resulted from higher sales of consumer products, particularly soybean oil, which saw continued growth in consumption demand from the previous year, despite a decline in selling prices in line with market dynamics. In addition, the Information Technology Business Group reported project revenue of 616 million Baht, marking a 20% increase from the same period last year, mainly due to revenue recognition from government projects that were gradually approved during the second half of 2024.

Profit (loss) from operating activities for the three-month period ended 31 March 2025 amounted to a profit of 6 million Baht, representing an improvement from a loss of 17 million Baht in the same period of the previous year. The improvement was mainly due to revenue growth in the Trading Business Group and the Information Technology Business Group. Meanwhile, the performance of project-based operations under the Network Solutions Business Group and the Services Business Group was slightly lower than in the previous year, due to the continuing impact of an unsteady economic recovery.

The share of profit from associates and joint ventures for the three-month period ended 31 March 2025 amounted to 125 million Baht, a decrease from 179 million Baht in the same period of the previous year. The decline in share of profit from associates was primarily due to the fluctuating performance of the security services business, which recorded a loss this year as a result of increased personnel management costs. This led to a recognized share of loss of 17 million Baht, compared to a share of profit of 24 million Baht in the prior year. Nevertheless, the core associates and joint ventures, particularly those in the coated steel products and lubricants business group, continued to deliver strong and consistent profits.

Net profit for the first quarter ended 31 March 2025 amounted to 64 million Baht, a decrease of more than 20% from the net profit of 111 million Baht in the same period of the previous year. The decline in net profit was primarily due to the decrease in the share of profit from associates and joint ventures, as described in the details above.

Please be informed accordingly.

Sincerely yours,

Loxley Public Company Limited

(Mrs. Manisara Janewithayapun) Company Secretary