Bangkok--15 Feb--RATCH RATCH announced its business direction of 2008 focusing of various investment projects, domestic and abroad; the net profit is projected to increase by 10-15%. Also, “Community Forest” - a five-year CSR project - is set to launch. Mr. Narong Sitasuwan, Managing Director of RATCH, stated that in 2008 the Company will continue to be focusing on the integrated sustainable business growth, including investment in various projects in Thailand and aboard to supply electricity serving the power demand for all Thais, which is the Company’s core business together with adding investment value for all shareholders as per the Company’s policy. Presently, the Company has the working capital of 11,040 million baht and retained earnings from operation of 19,998 million baht which were prepared for the investment projects. Hence, the long-term installed capacity is targeted to 8,000 megawatts by the year 2016. This year, 1,400-Megawatt Rachaburi Power’s Power Plant Project, which the Company holds 25% of the shares, will begin generating electricity commercially in March and June. The Company will be able to realize the revenue from such production and will increase the installed capacity to 350 megawatts by equity own when include other projects that are 615-Megawatt Nam Ngum 2 Hydro Power Plant by 25% stake and 440-Megawatt Nam Ngum 3 Hydro Power Plant by 25% stake, 372-Megawatt Xe Pien Xe Nam Noi Hydro Power Plant by 25% stake, and 1,653-Megawatt Hongsa Coal-fired Power Plant by 40% stake. This can be concluded that in 2013 the Company will achieve the total installed capacity of 5,364.50 megawatts. Such capacity does not include the 3,660-Megawatt Koh Kong Power Plant Project, which the Company, with its ally, holds 70% of the shares. For the business performance of 2008, the Company projects an increase in the net profit of 10-15% compared to last year. Due to the Company will realize more revenue from Ratchaburi Power’s Power Plant. However, as planned shutdown the Company will be scheduling the major overhaul maintenance for Ratchaburi Combined Cycle Power Plant Block 3. The Company has announced the business performance of the Company and subsidiaries for 2007, ending December 31, 2007; the net profit was 5,829.40 million baht or 4.02 baht per share. When compared with 2006, the performance showed a decrease of 4.53% or 0.19 baht per share. However such performance was higher than the Company had expected, which was a decrease of 10% due to the major shutdown for maintenance of Rachaburi Thermal power plant Unit 1 and Combined-Cycle power plant Block 2. For the 2007 operation, the sale revenue was 43,820.69 million baht, a decrease of 6,552.01 million baht or 13.01% lower than the previous year due to the planned shutdown for the major overhaul at Ratchaburi Power Plant. Nonetheless, the Company received the insurance claimable of 707.77 million baht from fire incident at the Flue Gas Desulphurization (FGD) unit. In addition, the Company’s interest income was 580.53 million baht, an income received from management service fee and other incomes were 49.33 million baht and 122.16 million baht orderly. For the costs and expenses, the Company’s cost of sales was 38,122.25 million baht, a decline of 4,826.26 million baht or 11.24% from last year. Other expenses included the directors’ remuneration of 28.54 million baht and administration expenses of 631.34 million baht, an increase of 133.78 million baht from 2006. The Board of Directors has agreed to submit the Annual General Meeting of Shareholders for approval on total dividend payment of the year 2007 at 2.10 baht per share or in a total amount of 3,045 million baht. However, the interim dividend at 1.00 baht per share was paid to shareholders on September 17, 2007. The remaining yearend dividend at 1.10 baht per share will be paid to shareholders on April 30, 2008. The closing date of the share registration book for the right to receive such dividend will be April 18, 2008 at 12.00 a.m. Furthermore, Mr. Narong informed about the corporate social responsibility activities “The Company has been giving much importance to the environment management which can be seen from the surroundings of community nearby our power plant together with other activities related to the conservation of ecology and natural resources that the Company has been conducting for the community. According to the royal speech of Her Majesty the Queen Sirikit in regard to promoting the forest and natural resources conservation for Thai peoples, this year, the Company has a policy to extend such support by initiating long-term environment and natural resources conservation projects to communities nationwide under the concept of “Community Forest”. The budget of 56 million baht has already been set for the 5-year project.” For more information please contact: Public Relations Department of Ratchaburi Electricity Generating Holding PCL. Wiwan Phayakvichien and Duangkeaw Dheinsawadkij Tel. 0 2978 5221, 978 5224 E-mail: [email protected]