To be a leading value-oriented integrated energy company in Asia-Pacific

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Dear all shareholders and stakeholders,

2021 marked another challenging year for RATCH as the COVID-19 was continuing to spread around the world. As such, we adapted and changed our operating process more resilient to accommodate changing environment. RATCH consequently moved forward our mission and accomplished the targets for acquisition of capacity, new business, impressive operating and financial results, and progress of sustainability development.

Caring employees’ health and safety, as well as society’s aids during COVID-19 outbreak

RATCH devised the measures that helped protect workers and prevent them from infection. Good health was promoted through the provision of alternative vaccine and appropriate health insurance and strict compliance with public health measures. Our power plants were announced restricted zones and accommodations were provided to operators remaining safe from the virus. RATCH also informed, advised and assisted employees and their families who were at risk and closely monitored the condition. We facilitated necessity to boost efficiency and flexibility when employees worked at home or anywhere outside the office. At the result, we ably prevented the infectious diseasespread at Head Office, encouraging employees’ motivation to work to the fullest and contribute to the Company’s achievements.

Additionally, RATCH provided financial assistance, medical equipment and in-kind supports to hospitals, medical professionals, government agencies and communities across Thailand, to give them moral supports and ease their hardship caused by the COVID-19.

Striking the balance of economic values and social/environmental values

RATCH realizes that the power generation business, our core business, is in a transition period due to the climate change. The Board of Directors and the Management jointly reviewed and revised the business strategy and investment targets in the medium and long terms taking into consideration of high potential businesses especially in renewable and low-carbon energy. RATCH subsequently raised the target of renewable capacity to 2,500 MW or 25 percent of total capacity in 2025 and 4,000 MW or 40 percent in 2035. In addition, the Company planned to increase investment in portfolio of non-power business to 20 percent of the total. Importantly, the coal-fired generation was limited at 2,000 MW or 20 percent of the total targeted capacity.

In 2021, two large wind farms in Australia with attributable installed capacity of 377 MW effectively commenced commercial operations. In the meantime, one wind farm in Vietnam with attributable installed capacity of 15 MW was under construction and scheduled for commercial operations in 2022. Moreover, RATCH successfully raised stake indirectly in 180-MW Asahan-1 Hydroelectric Power Plant in Indonesia, to 47.89 percent. At the year end, RATCH’s renewable attributable installed capacity totaled 1,346 MW or 14.8 percent of total attributable installed capacity of 9,115 MW.

This year, RATCH put an emphasis on power and energy related innovation development and investment and invested 30 percent stake in Innopower Company Limited, a joint venture with Group of Electricity Generating Authority of Thailand (EGAT Group). The joint company is set to commercialize EGAT’s invention and innovation, as well as seek for investment in energy-related start-ups and new S-Curve businesses. Innopower will turn risks to opportunities, moving the Company in light of the energy transition to a green industry. RATCH also 16 RATCH Group PCL. Form 56-1 One Report 2021 diversifies into the hospital and healthcare business, as the basic needs demonstrates growth potential. Consumers nowadays pay more attention to healthcare due to the COVID-19 outbreak and the ageing conditions. In 2021, RATCH completed 2 transactions including 10 percent share purchase of Principal Capital Public Company Limited; an operator of 12 hospitals in Bangkok and upcountry, and 9.91 percent equity acquisition of Bangkok Chain International (Lao) Company Limited, the operator of a 254-bed hospital in Lao PDR.

The Company is confident that the approaches and targets will continually grow our enterprise values and the supply chain, meanwhile contributing benefits to the environment and society, helping mitigate the climate change impacts.

On path to sustainable future

RATCH remains the commitment to economic, environmental and social value creation under the 3 principal strategies; Growth Strategy, Green Strategy, Generate Strategy, together with 4 key targets: growth in power generation business particularly renewable energy; growth in non-power industry in response to low-carbon society and digital economy; capacity building for enhancing our competitiveness and leadership in the industry; and partnership with all parties for the sake of environment and society to uplift sustainability standards particularly in environmental, social and governance aspects that matter to stakeholders.

In the meantime, RATCH is on alert and prepared for the COVID-19 situation, to ensure that our operations at all locations enable to proceed and achieve growth target.

Lastly, we would like to express appreciation all shareholders, the Board of Directors, the Management, employees and stakeholders for continuous cooperation, supports and recommendations. We affirm the commitment to drive RATCH Group towards growth and sustainability.


(Mr. Boonyanit Wongrukmit)
Chairman