Eastern Water Resources Development and Management Public : The company's business plan

Translation

EW/100/360/22

August 1, 2022

Subject: The company's business plan

Attn: The President, The Stock Exchange of Thailand

Dear Sir,

As recently reported by some news outlets, the Treasury Department plans to sign the lease contract for the major water distribution pipelines in the Eastern Seaboard area with the winner of the second bid on August 3, 2022. Thus, Eastern Water Resources Development and Management Public Company Limited (the "Company") would like to report that this issue is related to the dispute that the Company has filed a complaint against the Selection Committee of the Private Company to Manage and Operate the Main Water Distribution Network in the Eastern Area ("Selection Committee of the Private Company") appointed by the Treasury Department with the Central Administrative Court on September 23, 2021. The complaint was subsequently amended to add the Ratchaphatsadu Land Committee to the list of defendants on March 23, 2022, as the Selection Committee of the Private Company appointed by the Treasury Department issued the order to cancel the selection of the private company to manage and operate major water distribution pipeline systems in the Eastern Seaboard area and issued a new request for proposal, as well as the resolution of the Ratchaphatsadu Land Committee approving selection of private company in accordance with the new request for proposals, which would result in damages to the Company. The complaint is still under the Central Administrative Court's consideration. When the Central Administrative Court has made their verdict, the case may be appealed to the Supreme Administrative Court. Moreover, even after the contract for the project in dispute is signed, but the selection process of the private company is subsequently found to not be in compliance with the law, the Administrative Court will still have the authority to revoke the proceedings, and that if the Company determines that it has incurred damages, the n it would have the right to file a suit for damages.

Presently, the Company uses the water grid to manage water distribution in Rayong, Chon Buri and Chachoengsao Province area has a total length of 512 kilometers, 135.90 kilometers of which are pipes that leased to manage from the Treasury Department, and the other 376.10 kilometers invested by the Company including several pumping stations connecting the main cost water resources in the Eastern area, these are not part of current dispute. Therefore, the Company still operate its business as usual. In addition, the Company is in the process of developing the water grid including the construction of additional pumping stations to accommodate the increasing demand for water both in present and future especially in the Eastern Economic Corridor (EEC).

Nevertheless, the Company has started to implement projects in accordance with the water supply and main water distribution pipeline network development plans in the Eastern Seaboard with the construction of an additional 120 kilometers of

pipelines with a capacity of 350,000 cubic meters per day (CMD) connecting the Water Grid and enhancing water security to maintain the customer base and support demand growth stemming from the expansion of the industrial sector following the government's EEC policy. Additionally, the Tubma Reservoir Project was developed to ensure raw water supply reserves, prevent water shortage during drought and establish water service stability for customers. Presently, the project has completed construction and is currently capable of storing 12 million cubic meters (MCM) of raw water reserves. These projects ensure that the Company has plans to manage the situation so that the Company is able to supply water to the Eastern Seaboard area with continued efficiency.

Furthermore, the Company is expanding from the raw water business towards the total water services for various industrial estates, governmental and private agencies, both within and outside of the EEC area. These services include tap water supply, industrial water supply, water recycling services and wastewater treatment services. For tap water, recycled water and wastewater treatment services, the Company currently has contracts to provide services to the Provincial Waterworks Authority (PWA), Local Government Organizations (LGO), industrial estates and factories using up-to-date technologies in the production, maintenance and tap water distribution processes, as well as providing engineering services, to more than 200,000 water users. Presently, the Company operates 12 concessions, with contract periods of 15-30 years, with none of the larger concessions set to expire within a short timeframe. Additionally, the Company is likely to be entrusted with the extension to operate the existing concessions. As for industrial water services, the Company has developed projects to generate long-term revenues by installing industrial water production systems and strictly control the quality of water delivered to customers in accordance with the specific requirements of each industrial customer. Presently, the Company has an industrial water production capacity of more than 100,000 CMD to support the demands of industries in various industrial estates, and has started delivering industrial water to customers. The contract periods range 15-30 years with new contracts being continually added. The Company also has the total water services project to supply tap water, wastewater treatment and recycled water services to the U-Tapao International Airport, with a contract length of 25 years. All of these projects ensure that the Company will continually recognize revenue.

The Company is committed to operate its business following the corporate vision "To be th e leader in total water solution of the country", while continually seeking to expand business, enhance sustainability, maintain stability of the wat er supply and increase its competitiveness through application of cutting-edge technologies and innovation. The Company is steadfast in following the directive of the Cabinet Resolution to manage and develop water resources in the Eastern Seaboard area for the continued and sustainable growth.

Please be informed accordingly.

-Signed-

Cherdchai Pitiwacharakul

President & CEO

Legal Affairs and Corporate Governance Office

Tel [phone] Ext. 2522, 2577