Ratchaburi Electricity Generating Hldg : Operating Result Quarter 2 Ending 30 Jun 2018

(Translation)

RH 360 / 2018

August 14, 2018

Subject : To:Interim Financial Statements for the three-month and six-month periods ended June 30, 2018 President

The Stock Exchange of Thailand

We, Ratchaburi Electricity Generating Holding Public Company Limited ("the Company"), are pleased to submit herewith the interim financial statements for the three-month and six-month periods ended June 30, 2018 and independent auditor's report on review of interim financial information, compared with the interim financial statements for the three-month and six-month periods ended June 30, 2017 (restated). The details are as follows:-

1. Changes in accounting policies

On January 1, 2018, the Company had applied accounting policy for derivative financial instruments and hedge accounting. The changes have been applied retrospectively. The consolidated statement of financial position as at 31 December 2017, the consolidated statements of comprehensive income for the three-month and six-month periods, the consolidated of changes in equity, and cash flows for the six-month period ended 30 June 2017, comparative information, have been adjusted regarding the accounting policy changes. The impacts on the consolidated statement of financial position and the consolidated statements of comprehensive income are summary as follows:-

Unit : Million Baht

Statement of Financial Position	Dec 31, 2017	Jan 1, 2017
Assets Total Assets - Previously Reported Derivative Assets Increase / (Decrease) Investment in Associates and Joint Ventures Increase / (Decrease) Total Assets - Restated Liabilities Total Liabilities - Previously Reported Derivative Liabilities Increase / (Decrease) Deferred Tax Liabilites Increase / (Decrease) Total Liabilities - Restated Equity Total Equity - Previously Reported Retained Earnings Increase / (Decrease) Other Components of Equity Increase / (Decrease) Non-Controlling Interests Increase / (Decrease) Total Equity - Restated	94,224.83 143.51 (573.93)	96,391.09 488.56 (785.71)
	93,794.41	96,093.94
	30,943.65 3,838.44 2.82	33,938.32 3,872.25 0.70
	34,784.91	37,811.27
	63,281.18 (3,109.45) (472.33) (689.90)	62,452.77 (3,041.29) (488.75) (640.06)
	59,009.50	58,282.67

Unit : Million Baht

Statement of comprehensive income	Y2017
	Quarter 2	Quarter 1-2
Profit Attributable to Owner of the Parent - Previously Reported Finance Costs (Increase) / Decrease Share of Profit of Associates and Joint Ventures Increase / (Decrease) Income Tax Expense (Increase) / Decrease Non-controlling interests (Increase) / Decrease Profit Attributable to Owner of the Parent - Restated	2,200.99 (114.61) (46.53) (1.13) 9.30	3,559.43 (297.48) (47.86) (1.54) 39.94
	2,048.02	3,252.49

2. The operating result for the 2nd quarter of 2018

The operating result according to the consolidated financial statements of the Company and its subsidiaries for the 2nd quarter of 2018 showed the profit of Baht 2,131.87 million or Baht 1.47 per share, increasing by Baht 83.85 million, or 4.1 percent, compared to the profit of Baht 2,048.02 million or Baht 1.41 per share of the 2nd quarter of 2017, the significant transactions were as follows:-

2.1 Share of profits in associates and joint ventures

Share of profits in associates and joint ventures for the 2nd quarter of 2018 was Baht 1,727.16 million, increasing by Baht 390.31 million or 29.2 percent from Baht 1,336.85 million in the 2nd quarter of 2017. The main reason was the profit of Hongsa Power Company Limited ("HPC"), a joint venture, in a portion of 40 percent increased in the amount of Baht 320.61 million. The main reason was due to the gain on exchange rate in the 2nd quarter of 2018, in the amount of Baht 481.61 million; while loss on exchange rate in the 2nd quarter of 2017 was in the amount of Baht 38.23 million. However, without consideration of foreign exchange rate effect, the profit decreased in the amount of Baht 199.23 million, due to the fact that Hongsa Power Plants generated less electricity than the same period of the previous year.

2.2 Cost of sale and rendering of services (excluding fuel costs)

Cost of sale and rendering of services for the 2nd quarter of 2018 was Baht D,163.53 million (excluding fuel costs of Baht 8,296.77 million), decreasing by Baht 169.70 million, or 12.7 percent from the cost of sale and rendering of services in the 2nd quarter of 2017 in the amount of Baht 1,333.23 million (excluding fuel costs of Baht 8,090.95 million). The main reason was from the decrease in cost of sale of Ratchaburi Electricity Generating Company Limited by Baht 144.22 million, as the shutdowns for planned maintenance during the year 2018 were less than those of the previous year.

2.3 Revenue from Finance Leases Contracts

Revenue from finance leases contracts for the 2nd quarter of 2018 was Baht 853.62 million, decreasing by Baht 168.03 million or 16.4 percent from Baht 1,021.65 million in the 2nd quarter of 2017. The change was due to the decreased lease receivable, calculated according to the Effective Interest Method.

2.4 Revenue from Sales and Rendering of Services (excluding fuel costs)

Revenue from sale and rendering of services for the 2nd quarter of 2018 was Baht 1,588.22 million (excluding fuel costs of Baht 8,296.77 million), decreasing by Baht 187.20 million or 10.5 percent from revenue from sale and rendering of services in the 2nd quarter of 2017 of Baht 1,775.42 million (excluding fuel costs of Baht 8,090.95 million). The main reason was the decrease in revenue from sale of Ratchaburi Electricity Generating Company Limited, a subsidiary, in the amount of Baht 161.06 million due to the decrease in Base Availability Credit in 2018 compared to that of 2017, as specified in the Power Purchase Agreement.

2.5 The effect of exchange rate of the Company and its subsidiaries

In the 2nd quarter of 2018, the Company recorded loss on exchange rate of Baht 174.79 million, due to the depreciation of AUD currency in relative to USD currency, resulting in the decrease of net asset value in AUD currency. In contrast, the Company recorded gain on exchange rate of Baht 48.02 million in the 2nd quarter of 2017 due to the appreciation of AUD currency in relative to USD currency, resulting in the increase of net asset value in AUD currency.

The operating result of the Company and its subsidiaries for six-month period ended June 30, 2018 showed the profit of Baht 3,258.46 million or Baht 2.25 per share, increasing by Baht 5.97 million or 0.2 percent compared to the Baht 3,252.49 million of the same period in 2017.

The Statement of Financial Position of the Company and its subsidiaries as at June 30, 2018 showed total assets of Baht 103,684.06 million, increasing by Baht 9,889.65 million or 10.5 percent from Baht 93,794.41 million as at December 31, 2017.

Please be informed accordingly.

Sincerely yours,

(Mrs. Sunee Rajatamutha)

Chief Finance Officer

Acting for Chief Executive Officer