Ratch : Management Discussion and Analysis Q1/2023

RATCH Group Public Company Limited

Management Discussion and Analysis

For the 1st Quarter Ended March 31, 2023

Management Discussion and Analysis

For the the 1st Quarter Ended March 31, 2023

Abbreviation

The Company	RATCH Group Public Company Limited
The Group	RATCH Group Public Company Limited and its subsidiaries
PEA	Provincial Electricity Authority
EGAT	Electricity Generating Authority of Thailand
COD	Commercial Operation Date
EBITDA	Earnings before Interest, Tax, Depreciation and Amortization
FX	Foreign Exchange Rate
IPP	Independent Power Producer
PPA	Power Purchase Agreement
SPP	Small Power Producer

Projects/Companies
BAFS	Bangkok Aviation Fuel Services Public Company Limited, a direct associate in proportion of 15.53 percent
CS	Coc San Hydroelectric Power Plant, operated by Lao Cai Renewable Energy Stock Company, a wholly-owned
	indirect subsidiary
FRD	Asahan-1 Hydroelectric Power Plant, operated by Fareast Renewable Development Pte. Ltd., RHIS in proportion of
	90 percent
LG1&2	Lincoln Gap 1&2 Wind Farm Project, operated by Lincoln Gap Wind Farm Pty Ltd., a wholly-owned indirect
	subsidiary
HKP	Hin Kong Combined-Cycle Power Plants, operated by Hin Kong Power Company Limited, a direct joint venture in
	proportion of 51 percent
HPC	Hongsa Thermal Power Plants, operated by Hongsa Power Company Limited, an indirect joint venture in
	proportion of 40 percent
NNEG	Nava Nakorn Power Plant, operated by Nava Nakorn Electricity Generating Company Limited, an indirect joint
	venture in proportion of 40 percent
PNPC	Xe-PianXe-Namnoy Hydroelectric Power Plant, operated by Xe-PianXe-Namnoy Power Company Limited,
	a direct joint venture in proportion of 25 percent
RAC	RATCH-Australia Corporation Pty Ltd, a wholly-owned indirect subsidiary
RCO	RATCH Cogeneration Power Plant, operated by RATCH Cogeneration Company Limited, a wholly-owned
	subsidiary
RER	RATCH Energy Rayong Power Plant, operated by RATCH Energy Rayong Co.,Ltd. (previous name : "Nexif RATCH
	Energy Rayong Co.,Ltd"), a subsidiary
RG	Ratchaburi Power Plants, operated by Ratchaburi Electricity Generating Company Limited, a wholly-owned
	subsidiary
RHIS	RH International (Singapore) Corporation Pte Ltd, a wholly-owned indirect subsidiary
SCG	Sahacogen (Chonburi) Public Company Limited, a subsidiary in proportion of 51.67 percent
SP	Snapper Point Gas-Fired Power Plant, operated by Port Adelaide Energy Pty Ltd., a wholly-owned indirect
	subsidiary

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Management Discussion and Analysis

For the the 1st Quarter Ended March 31, 2023

Executive Summary

			Unit : Million THB
	Quarter 1		Increase
			%
	2023	2022	(Decrease)
Total revenues	17,004.84	18,249.67	(1,244.83)	(6.8)
EBITDA	3,700.63	2,994.64	705.99	23.6
Profit to owner of the Company	1,447.67	1,579.35	(131.69)	(8.3)
Profit before FX	1,624.76	1,166.38	458.38	39.3

Total Revenues

• In the 1st quarter 2023, the total revenues decreased by 6.8 percent as the Energy Payment of RG decreased due to lower electricity generation, corresponding to lower dispatch instruction by EGAT. However, due to the acquisition by RHIS on December 20, 2022, the revenue from sales of LG1&2, SP and CS has been consolidated. In addition, the revenue from sale of RER has been consolidated due to status change from a joint venture to a subsidiary.
• In the 1st quarter 2023, the HPC share of profit increased due to the increase in Availability Payment and the share of profit of NNEG increased due to the rise in Ft. In addition, the share of profit of BAFS increased due the increase in flight and refueling volume.

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Management Discussion and Analysis

For the the 1st Quarter Ended March 31, 2023

EBITDA

• In the 1st quarter 2023, the EBITDA increased by 23.6 percent because the EBITDA of LG1&2, SP, CS and RER has been consolidated. Furthermore, the share of profit from JV increased as previously mentioned.

Profit to Owner of the Company

• In the 1st quarter of 2023, by excluding the effect of FX, the operating result increased by THB 458.38 million or 39.3 percent. The main reason was the acquisition of LG1&2, SP, CS and RER power plants, which are in commercial operation. As a result, this enhanced the profit of the Company. While the Company had the loss on FX from loan to related parties in AUD. As AUD depreciated in relative to USD, the asset value in AUD decreased, the Company had the profit in the 1st quarter of 2023 in the amount of THB 1,447.67 million.

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Management Discussion and Analysis

For the the 1st Quarter Ended March 31, 2023

1. Significant Events of the 1st Quarter of 2023

1.1 Commercial operation of RATCH Cogeneration SPP Power Plant (Expansion)

On Februay 1, 2023, RATCH Cogeneration SPP Power Plant (Expansion) with the installed power generating capacity of 31.2 megawatts and steam generating capacity of 7.15 ton per hour, has officially commenced commercial operation. The power plant, operated by RCO, has power and steam purchase agreement with industrial users.

1.2 Progress on the purchasing of ordinary shares to invest in Thermal Power Plant in the Republic of Indonesia

RHIS has reached an arrangement that it will be acquiring 36.26 percent of power plant business in PT Paiton Energy and in Minejesa Capital B.V. and will be acquiring 65 percent in IPM Asia Pte. Ltd., which undertakes power plant operations and maintenance business. This arrangement is in line with the Company's commercial objectives and this investment will deliver consistent returns to the Company. This is also a part of the process to complete conditions precedent of Sale and Purchase Agreement which RHIS has signed on June 22, 2021.

Paiton power plant is the coal-fired thermal power plant with total capacity of 2,045 megawatts located in Paiton Power Generation Complex in the Republic of Indonesia.

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