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Message from the chairman

Dear all shareholders and stakeholders,

2019 marked the 19th year that the RATCH has demonstrated its commitment and put its best efforts to become a leading value-oriented energy and infrastructure company in Asia Pacific driven by value creation oriented strategy via seeking collaboration with partners to expand investment in energy, infrastructure and related businesses and maximize the existing assets' revenue-generation capacity, while completing under-construction projects within schedule and under planned expenses for the anticipated quality. Our goals are to grow the enterprise value and create returns to shareholders and stakeholders in a fair and sustainable manner by operating business with good governance and responsibility for society and the environment. We have been a good neighbor to community; strictly complied with standards on safety, occupational health and environment at workplace as well as relevant laws and regulations; combatted against all types of corruption; and been riding on the path towards High Performance Organization and innovation development. We're fully convinced that all the aforementioned aspects are the foundation and forces to enhance corporate competitiveness and prosperity amid waves of rapid changes in economic, social, environmental and technological areas. Importantly, as a good corporate citizen, we have always reminded ourselves that social and national benefits are the priority, especially power security and the adoption of international best practices.

Electricity generation remains our main business. The Company realized 8,655.07 MW of equity installed capacity from its projects in Thailand and overseas. Of total, 7,159.19 MW comes from commercially-operated power plants and the remaining 1,495.88 MW from projects under construction and development.

New operating capacity of 298.84 MW was added up in 2019 by the investment in Collinsville Solar Farm in Australia and the acquisition of RATCH Cogeneration Power Plant, a small power producer located in Pathum Thani Province and 2 projects commenced operation this year- Berkprai Cogeneration Power Plant in Ratchaburi Province and Xe-Pian Xe-Namnoy Hydroelectric Power Plant. The construction of Xe-Pian Xe-Namnoy, located in Lao PDR, was completed on schedule after project rehabilitation following the collapse of Saddle Dam D in mid-2018. The Company's investments also covered projects that will start commercial operations in 2020 - Nava Nakorn SPP (Expansion) in Pathum Thani Province and Yandin Wind Farm in Australia. The projects scheduled for commercial operations in 2021 are Collector Wind Farm in Australia, Fangchenggang II Nuclear Power Plant in the People's Republic of China, and Riau Combined-Cycle Power Plant in the Republic of Indonesia. Scheduled for operation in 2024 and 2025 is Hin Kong Combined- Cycle Power Plant in Ratchaburi Province which leverages the Company and its business partner's strengths to accelerate project success. These above mentioned projects will raise the Company's capacity by 1,495.88 MW.

Meanwhile, our profitability remained satisfactory in 2019. The consolidated revenue reached Baht 43,220.07 million while the annualized net profit totaled Baht 5,963.28 million, an increase from the previous year level. Reflecting the solid financial status, the corporate credit ratings were maintained the same level as sovereign credit ratings at "AAA", "BBB+" and "Baa1" by TRIS Rating, S&P Global Ratings and Moody's Investors Service, respectively. Subsequently, Moody's Investors Service raised the Company's rating outlook from "Stable" to "Positive", on par with Thailand's sovereign rating outlook.

Throughout the past years, the Company has upheld good governance best practices, having continually reviewed and improved the operations to achieve greater efficiency. Sustainable value for the organization is the top goal of all work processes. We make sure our business operations adhere to morals, ethics, integrity, transparency, anti-corruption practices, responsibility for society and the environment and equitable treatment of stakeholders. Mirroring this are awards and recognitions including "Excellent" Assessment of Corporate Governance Report of Thai Listed Companies in 2019; quality assessment of 2019 shareholders' annual general meeting with full 100-point score; inclusion in Thailand Sustainability Investment 2019; Rising Star in Sustainability Excellence of SET Awards 2019; Sustainability Disclosure Award 2019; Outstanding Booth Award at SET in the City 2019; and Outstanding Building Safety Award 2019 - Platinum Level. Aside, we have been on the path to develop innovations for greater operational efficiency. On 28 August 2019, the Company applied for a petty patent from the Department of Intellectual Property for its "cogeneration" system that generates electric power through the combination of gas turbine, steam turbine and gas engine, to achieve high production efficiency and flexibility. The result is expected around March 2020.

Caring for society and the environment is one of the Company's priorities. It has been embedded in CSR projects and activities including "Love the Forest and the Community Project", "Community Energy Project", @CareLine Happy Community Network Project, Happy Elderly Healthy Thailand Project; employee volunteering and Education for Career Empowerment Project in Lao PDR. These undertakings help lift the quality of life, while tackling or easing social and environmental issues. The goals are to conserve natural resources and the environment through efficient resource utilization and community forests that act as natural carbon dioxide storage and reduces global warming impacts. The Company also promotes the elderly's quality of life and provides educational opportunities to the youth. It raise awareness in sharing and volunteering among employees, to do good deeds as the good citizens of society.

On behalf of the Board of Directors, the Management and employees, I would like to thank all shareholders and stakeholders for continuous supports, recommendations and trust in the Company's operations. We strongly believe that operating business cautiously in line with strategies that stress a balance in economic, social and environmental value, good governance best practices and responsibility for society and the environment will lead us towards the goal - to become a leading value-oriented energy and infrastructure company in Asia Pacific in a stable and sustainable way.

(Mr. Sutat Patmasiriwat)
Chairman of the Board of Directors

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