Ratch : Management Discussion and Analysis Quarter 1 Ending 31 Mar 2021

RATCH Group Public Company Limited

Management Discussion and Analysis

For the 1st Quarter Ended 31 March, 2021

Management Discussion and Analysis

For the 1st Quarter Ended 31 March, 2021

Abbreviation

The Company	RATCH Group Public Company Limited
The Group	RATCH Group Public Company Limited and its subsidiaries
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

ABEIF	An Binh Energy and Infrastructure Fund, an indirect joint venture in proportion of 49 percent
HKH	Hin Kong Power Holding Company Limited, a joint venture in proportion of 51 percent
HKP	Hin Kong Power Company Limited, an indirect joint venture wholly-owned by HKH
HPC	Hongsa Power Company Limited, an indirect joint venture in proportion of 40 percent
NRER	Nexif Ratch Energy Rayong Company Limited, an indirect joint venture wholly-owned by NRES
NRES	NEXIF RATCH ENERGY SINGAPORE PTE LTD, an indirect joint venture in proportion of 49
	percent
RAC	RATCH-Australia Corporation Pty Ltd, a wholly-owned indirect subsidiary
RCO	RATCH Cogeneration Company Limited, a subsidiary in proportion of 99.97 percent
RG	Ratchaburi Electricity Generating Company Limited, a wholly-owned subsidiary
RHIS	RH International (Singapore) Corporation Pte Ltd, a wholly-owned indirect subsidiary
RIAU	PT Medco Ratch Power RIAU, an indirect joint venture in proportion of 49 percent
RPCL	Ratchaburi Power, an indirect joint venture in proportion of 25 percent
SEAN	Southeast Asia Energy Limited, a joint venture in proportion of 33.33 percent

Page 1

Management Discussion and Analysis

For the 1st Quarter Ended 31 March, 2021

Executive Summary

				Unit : Million baht
	Quarter 1
				Increase	%
				(Decrease)
	2021		2020
Total revenues	8,701.32		11,191.75	(2,490.43)	(22.3)
Total cost and expenses	6,881.12		9,207.89	(2,326.77)	(25.3)
EBITDA	2,650.04		2,870.08	(220.04)	(7.7)
Gain (Loss) on FX	267.66		(623.03)	890.69	143.0
Profit to owner of the Company	2,087.86		1,360.82	727.04	53.4
Profit before FX	1,820.20		1,983.85	(163.65)	(8.2)

The operating result for the 1st quarter of 2021 showed the profit (attributable to owners of the Company) of THB 2,087.86 million, increasing from the same period of the previous year by THB 727.04 million. The increase is owing to the gain on FX which increased the profit in the amount of THB 890.69 million. Without the effect of FX of the Company and subsidiaries, the operating result for the 1st quarter of 2021 showed the profit of THB 1,820.20 million, decreasing from the same period of the previous year by THB 163.65 million. The decrease is owing to planned maintenances of RG and HPC. While, hydro power plant's performance increased due to higher electricity generation.

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Management Discussion and Analysis

For the 1st Quarter Ended 31 March, 2021

1. Significant Events of the 1st Quarter of 2021

1.1 Shareholding in Bangkok Aviation Fuel Services Public Company Limited

On January 19, 2021, the Company has been completely transferred the shares of Bangkok Aviation Fuel Services Public Company Limited ("BAFS") for 98,983,125 shares (or equivalent to 15.53 percent of total issued and paid-up shares in BAFS) from Thai Airways International Public Company Limited ("THAI"). The purchase price is THB 27.40 per share at the total amount of THB 2,712.14 million. The Company already paid a total share purchase price to THAI.

1.2 Full Operation Commencement of Yandin Wind Farm in the Commonwealth of Australia

On March 19, 2021, Yandin Wind Farm in the Commonwealth of Australia, the Company held 70 percent through RAC, has achieved Interim Approval from the grid connection authority and entered commercial operation at full capacity, while remaining commissioning certifications continue to be completed.

Yandin Wind Farm has the capacity of 214.2 megawatts with a 15-year PPA with Alinta Sales

Pty Ltd.

1.3 Full Operation Commencement of Collector Wind Farm in the Commonwealth of Australia

On April 7, 2021, Collector Wind Farm in the Commonwealth of Australia, the Company held 100 percent through RAC, entered commercial operation at full capacity. The project has two long term PPAs covering 79.6 percent of output. These are with Infigen Energy for 60 percent of output and ALDI Foods Pty. Ltd. (a subsidiary of global supermarket company, ALDI) for 19.6 percent of generation and the remaining electricity generated will be sold in the Commonwealth of Australia's National Electricity Market. Both PPAs can now operate while remaining commissioning test and certifications are finalized with the grid connection authority.

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Management Discussion and Analysis

For the 1st Quarter Ended 31 March, 2021

Progress of Projects under Construction (as of March 31, 2021)

	Riau Power Plant
Type of Fuel		Natural Gas
Install Capacity (MW)		296.23
Location		Republic of Indonesia
Ownership		49%
PPA		20 years with PT PLN
COD		Year 2021
Progress		96.66%
MRT Pink Line Project
Technology		Monorail
Route		Khae Rai-Min Buri
Ownership		10%
Contract Term		30 years
COD		Year 2022
Progress		Civil Works = 76.13%
		Railway System = 68.73%
MRT Yellow Line Project
Technology		Monorail
Route		Lad Prao-Sam Rong
Ownership		10%
Contract Term		30 years
COD		Year 2022
Progress		Civil Works = 80.44%
		Railway System = 71.18%

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