Message from the Board

2023 was a year full of unprecedented domestic and global challenges that hampered growth for businesses and economies. The year saw the decline in severity of the Covid-19 along with inflation instability, multiple historic union strikes and the start of the Israel-Hamas conflict. Geopolitics continued in the spotlight after Russia and Ukraine war, and tensions remained high between the US- China while various conflicts sprung up in other regions. Earth last year also shattered global annual heat records as the climate crisis unfolds. All these revealed key challenges and shifting priorities for 2024 with expectations for greater volatility given the recession risk on the horizon.

By navigating these uncertainties, Delta Electronics Thailand established a prudent business strategy, taking a cautiously optimistic approach to seizing opportunities, harnessing both strategic and operational capabilities to continue our robust growth journey. Amid the cautious technology spending in an uncertain global economy, we posted a record high revenue and profit in 2023 with headline revenue at USD 4.1 billion and net profit at USD 524 million, a rise of 23% and 21% YoY respectively. Our strongest metric was attributed to sales of EV power electronics with doubling revenue growth from 2022, driven by scaled-up capacity and easing material status to support order rfulfillment. In the context of global tech re-focus and looming recessions, growth of datacenter-related products had moderated but stayed strong, partly due to base year effects. An uptick in artificial intelligence, IoT and high-performance computing solutions remains intact with foreseeable healthy demand and outsized prospects in coming years.

This year marked several milestones of corporate achievements with strengthened operating structure to meet future challenges. Delta Thailand successfully bolstered manufacturing capacity with the completion of new Plant 8 and R&D facilities in Bangpoo alongside the commencement of additional two plants construction in Wellgrow. We have sharpened focus on manufacturing resilience with next phase expansions of key production clusters in India and Europe well on track to support customer long-term business growth and demand requirement. Smart manufacturing implementation was accelerated to drive productivity improvement, enhancing our cost and operating efficiencies. Further investments in R&D at the main center in Germany are underway to reinforcing our competitiveness in the technological frontier and capitalizing on the megatrends with our fast-growing business in electro-mobility, networking and datacenter, ICT and energy infrastructure, automated technology for industrial and smart cities.

The Company continued to implement new technologies as well as diversifying and increasing the sophistication of our solutions and services. These efforts are pivotal in keeping us competitive globally. For Southeast Asia, we have made significant inroads towards an integrated solution provider with growing footprints to support customers. The Company has gone an extra mile and contributed to uplifting Thailand’s manufacturing landscape for value-added production and next generation S-Curve industries. Through targeted initiatives, we have broadened market access, boosting sales, forging partnerships and fostering ecosystems to the advancement of Thailand’s Electronics and Automotive sectors. We nurture SEA talent development with academic institutions and various private entities. Among the strategic priorities, we ramped up localization of supply chain by engaging overseas partners to expand their investments in Thailand and encouraging Thai suppliers to meet global technology and compliance requirements.

Overall Delta Thailand is poised to continue leadership with our strategic orientation and innovative strength in power management technology. We strive to provide best-in-class solutions to usher a new era of decarbonization for businesses and society. In pursuit of sustainability, we embarked on the decarbonized roadmap with continuous benchmarking of best practices and global standards to contribute to our climate commitments and achieve RE100 by 2030. To expedite the carbon emission reduction, among multiple initiatives, we implemented internal carbon fee mechanism, adopted more energy-saving solutions, and funded innovative low-carbon technologies. Internationally accredited certification affirms Delta Thailand’s position among the world’s top performing sustainable companies.

The year ahead is likely to offer challenges and opportunities. While global economy outlook subdued from weakening demand conditions across major economies, we have developed robust and rapid-response planning capabilities to adapt and thrive for long-term value creation to our stakeholders. On behalf of the Board of Directors, we would like to express thankfulness to our shareholders, businesses partners, financial institutions, and relevant authorities for continued trust and unwavering support. Finally we would also like to thank the management teams and our motivated employees for their dedication and outstanding deliverables throughout the year 2023.