Ratch Public : Operating Result Quarter 1 Ending 31 Mar 2020

(Translation)

RATCH 159 / 2020

May 14, 2020

Subject : Interim Financial Statements for the three-month period ended March 31, 2020 and report on changes in operating result of more than 20 percent from the same period of the previous year

To: President

The Stock Exchange of Thailand

Referring to the notification made by RATCH Group Public Company Limited (the "Company"), the Company's Board of Directors Meeting No.3/2020, held on March 20, 2020 had resolved to postpone the Annual General Meeting of Shareholders for the year 2020 due to the outbreak of 2019 Coronavirus Disease (COVID-19). Accordingly, the agenda regarding the appointment of auditors and the approval of audit fee for the year 2020 were postponed. Also, according to the notifications of the Capital Market Supervisory Board No.TorJor. 28/2563 dated March 27, 2020 by the office of the Securities and Exchange Commission ("SEC"), listed companies, which are unable to arrange the Annual General Meeting ("AGM") to appoint the company's auditors, are able to submit the company's financial statements for the 1st quarter of 2020 reviewed by the auditors in the list of auditors approved by SEC and appointed by the company. Additionally, the company is required to propose the agenda of appointment of the company's auditors as aforementioned in the upcoming AGM.

In this regard, the Board of Audit Committee Meeting No. 6/2019, held on November 12, 2019, and the Board of Directors' Meeting No. 11/2019, held on November 18, 2019, has resolved the appointment of auditors from KPMG Phoomchai Audit Limited ("KPMG") to be the auditors of the Company by appointing of any one of Mr. Vairoj Jindamaneepitak (C.P.A. (Thailand) No. 3565) or Mr. Waiyawat Kosamarnchaiyakit (C.P.A. (Thailand) No. 6333) or Mr. Natthaphong Tantichattanon (C.P.A. (Thailand) No. 8829) as the Company's auditor in the year 2020. Any one of these auditors shall be authorized to conduct the audit and express an opinion on the statutory financial statements of the Company with the auditor's remuneration in the year 2020 in the amount of Baht 1,500,000 (excluding out-of-pocket expenses at the actual amount but not exceeding Baht 45,000). The Company will propose an appointment of the mentioned auditors in the upcoming Annual General Meeting of Shareholders.

- 2 -

The Company is pleased to submit herewith the interim financial statements for the three-month period ended March 31, 2020, independent auditor's report on review of interim financial information, compared with the interim financial statements for the three-month period ended March 31, 2019, and the explanation that the operation has changed more than 20 percent from the same period of the previous year. The details are as follows:

The operating result according to the consolidated financial statement for the 1st quarter of 2020 showed the profit (attributable to owners of the Company) of THB 1,360.82 million or THB 0.94 per share, decreasing by THB 380.44 million, or 21.8 percent, compared with the profit of THB 1,741.26 million or THB 1.20 per share of the 1st quarter of 2019. However, the operating result according to the consolidated financial statement for the 1st quarter of 2020, withoutconsideration of the effect of foreign exchange gain (loss) of the Company and subsidiaries showed the profit of THB 1,983.85 million, compared with the profit of THB 1,703.23 million of the 1st quarter of 2019, increasing by THB 280.62 million, or 16.5 percent. The significant transactions were as follows:

1. The effect of exchange rate of the Company and its subsidiaries

In the 1st quarter of 2020, the Company recorded loss on foreign exchange of THB 623.03 million. The main reason was from loan to related parties in AUD currency. As AUD currency depreciated in relative to USD currency, the asset value in AUD currency decreased. In contrast, the Company recorded gain on exchange rate of Baht 38.03 million in the 1st quarter of 2019 due to the appreciation of AUD currency in relative to USD currency, resulting in the increase of asset value in AUD currency.

2. Revenue from sales and rendering of services (excluding fuel costs)

Revenue from sales and rendering of services for the 1st quarter of 2020 was THB 2,207.80 million (excluding fuel costs of THB 6,684.97 million), increasing by THB 149.00 million or 7.2 percent from revenue from sales and rendering of services in the 1st quarter of 2019 of THB 2,058.80 million (excluding fuel costs of THB 7,186.26 million). The main reasons were as follows:

(1) The increase	in revenue from sales of RATCH Cogeneration Company Limited,
a subsidiary, in the amount of THB	524.19 million post the acquisition on October 1, 2019.

1. The decrease in revenue from sales of Ratchaburi Electricity Generating Company Limited, a subsidiary, in the amount of THB 241.25 million due to the decrease in Base Availability Credit in 2020 compared to that of 2019, as specified in the Power Purchase Agreement.

- 3 -

(3) The decrease in revenue from sales of RATCH-Australia Corporation Pty Ltd, a subsidiary, in the amount of THB 134.85 million, mainly due to AUD currency depreciation in relative to USD currency. In addition, Mount Emerald Wind Farm Project generated less electricity than that in the same period of the previous year.

3. Cost of sales and rendering of services (excluding fuel costs)

Cost of sales and rendering of services for the 1st quarter of 2020 was THB 1,950.86 million (excluding fuel costs of THB 6,684.97 million), increasing by THB 732.02 million or 60.1 percent from cost of sales and rendering of services in the 1st quarter of 2019 of THB 1,218.84 million (excluding fuel costs of THB 7,186.26 million). The main reason was the cost of sales and rendering of services of RATCH Cogeneration Company Limited, a subsidiary, has been consolidated in the amount of THB 463.14 million post the acquisition on October 1, 2019. In addition, the cost of sales from Ratchaburi Electricity Generating Company Limited, a subsidiary, increased in the amount of THB 283.84 million due to the recognition of losses on revaluation of heavy oil and diesel oil prices in the total amount of THB 251.24 million.

4. Gain (loss) on fair value adjustment of derivatives

In the 1st quarter of 2020, the Company recorded gain on fair value adjustment of derivatives according to the adopted accounting policies for derivatives and hedge accounting in the amount of THB

349.85 million. In contrast, the Company recorded loss on fair value adjustment of derivatives in the1st quarter of 2019 in the amount of THB 105.46 million. The main reason was the change in fair value adjustment of cross currency swap contract between JPY and AUD currencies to manage exposure of fluctuations in foreign exchange risk on borrowings.

5. Share of profit of associates and joint ventures

Share of profit of associates and joint ventures for the 1st quarter of 2020 was THB 1,480.64 million, increasing by THB 399.51 million or 37.0 percent from THB 1,081.13 million in the 1st quarter of 2019. The main reason was due to the fact that the profit of Hongsa Power Company Limited ("HPC"), a joint venture, in a portion of 40 percent, increased in the amount of Baht 390.04 million as HPC generated more electricity than that in the same period of the previous year.

- 4 -

The statement of financial position of the Company and its subsidiaries as at March 31, 2020 showed total assets of THB 103,448.31 million, increasing by THB 3,218.88 million or 3.2 percent from THB 100,229.43 million as at December 31, 2019.

Please be informed accordingly.

Sincerely yours,

(Mrs. Wadeerat Charoencoop)

Chief Finance Officer Acting for Chief Executive Officer

Accounting Control and Analysis Division

Tel : [phone]

Fax : [phone]