RATCH : drives force with 3-S strategy to create sustainable growth, Preparing a 35-billion baht investment budget and Recognizing more revenue from 1,207.13 MW capaciaty this year, EBITDA growth also expected

Nonthaburi - RATCH Group Public Company Limited gears up its 3-S business strategy: Strength-Synergy-Sustainability, driving the company towards sustainable growth. The power generation and energy business remians our primary goal for driving the company's revenue growth. In 2023, the Company will realize an addition of 1,207.13 MW commercial capacity, ensuring its revenue growth. Besides, this year the company has prepared a 35 billion baht investment budget, of which 29 billion baht will be used to expand investment in the power generation business and another 6 billion baht in the non-power business. The prostpected operations in 2023 will improve with the EBITDA target of no less than 12,000 million baht.

Ms. Choosri Kietkajornkul, Chief Executive Officer, RATCH Group Public Company Limited said that the Company's strategic plan for the year 2023-2027 will emphasize on four targets: (1) the return on investment growth with EBITDA target upward from 12 billion baht this year to 15 billion baht in 2027, (2) the expansion of non-power business invetment to be no less than five percent this year and will generate additional income by 5 percent in 2027, (3) the increase of renewable energy proportion to be 20% of the total generation capacity, and achieve 25% from 2025 onwards, (4) the improvement of environmental operation, society and good governance to be on par with international standards and preparing for the declaration of a carbon neutral commitment in 2027.

This year, the company's operation will continue to impletment the 3-S strategy: Strength-Synergy-Sustainability, aligned with business goals in building the sustainable growth. We will carry out the S2: Synergy strategy to join forces with our partners to enhance the Company's investment competency and competitiveness. In this regard, the Company will use the Nexif Rach Energy Investment (NREI), a joint venture as a mechanism to proceed its existing power plant projects in Australia, Vietnam and the Philippines, totaling eight projects with overall capacity of approximately 843 megawatts to achieve commercial operation goals. According to the Company's generation capacity plan, there will be an increase in commercial operation capacity, totaling 518.99 megawatts in 2024 and 918.20 megawatts in 2025, following by 252.77 megawatts in 2027 and 213 megawatts in 2030. In addition, the Company pursues investment opportunities in Vietnam, Indonesia, and the Philippines where the national power development plans required a substantial increase in power generation, especially renewable energy projects and hydrogen fuel. As for the non-power business, it will focus on the healthcare service business by continuing to partner with the PRINC group. For innovation business, the investment will be conducted through the Innopower Co., Ltd. which is now under a feasibility study on green hydrogen development where it plans to conduct a pilot operation in Australia at first.

"In addition, the company will implement the sustainability strategic plan. This year, we aim to reduce greenhouse gas emissions in our production process by 30,000 tons of carbon dioxide equivalent, increase production capacity from renewable energy up to 20%, and develop carbon credits from community forests for another 10,000 rai, whereby the company will contribute in the forest carbon credit management project for sustainable development of the Mae Fah Luang Foundation under the Royal Patronage," said Ms. Choosri.

For newly commercial operation projects this year, the company expects to realize revenues from RATCH Energy Rayong power plant, Snapper Point gas-fired power plant, Lincoln Gap 1&2 wind power plant in Australia, and Coc San and Song Giang 2 hydroelectric power plants, and Ecowin wind power plant in Vietnam. For the acquisition of shares in Paiton Thermal Power Plant in Indonesia, the Company expects to complete this project in the second quarter of this year.