RATCH: Annual Report 2009

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2009 Operating Performance

1. Investment and Assets Management )NVESTMENTINCOREBUSINESS $OMESTICPROJECTS &EASIBILITYSTUDYINTHE.AVA.AKORN0OWER0LANT0ROJECT0ATHUM4HANI0ROVINCE 4HE#OMPANYENTEREDINTOAMEMORANDUMOFUNDERSTANDINGWITH.AVA.AKORN0UBLIC#OMPANY,IMITEDAND0440UBLIC#OMPANY,IMITEDIN/CTOBERTOJOINTLYCONDUCTFEASIBILITYSTUDYTODEVELOPANDOPERATEAXMEGAWATTCOGENERATIONPLANTSUSINGNATURALGAS4HEPLANTWILLBE LOCATED IN.AVA.AKORN)NDUSTRIAL%STATE0ATHUM4HANI0ROVINCE)TISEXPECTEDTHATTHE#OMPANYWILLHOLDPERCENTSTAKEINTHEJOINTVENTUREWHILE0440UBLIC#OMPANY,IMITEDAND.AVA.AKORN0UBLIC#OMPANY,IMITEDHOLDINGPERCENTEACH 04/!!SSOCIATED'AS0OWER0LANTAND%XPANSION0ROJECTS &OLLOWINGTHESUCCESSOFTHEMEGAWATT04/!!SSOCIATED'AS0OWER0LANT IN3UKHOTHAI0ROVINCEWHICHUSEFLAREGASASFUELTHE#OMPANYTHROUGH2ATCHABURI%NERGY#OMPANY,IMITEDHASINVESTEDINTHE04/!%XPANSION!SSOCIATED'AS0OWER0LANT0ROJECT4HEMEGAWATTPOWERPLANTLOCATEDADJACENTTOTHEEXISTINGPROJECTUSESNATURALGAS FROMTHE0RATU4AO!OIL RIG4HEPROJECT ISUNDERDEVELOPMENTANDCONSTRUCTIONANDISEXPECTEDTOSTARTCOMMERCIALOPERATIONSIN /VERSEASPROJECTS )N THE#OMPANYAND ITSPARTNERSHAVEFURTHERDEVELOPEDPOWERPLANTPROJECTS INOTHERCOUNTRIES)THASNEGOTIATEDONMAJORAGREEMENTSINCLUDINGPOWERPURCHASEAGREEMENTSHAREHOLDERAGREEMENTANDCONCESSIONAGREEMENT4HE#OMPANYHASALSOPREPAREDFINANCIALSUPPORTTOFUNDTHESEPROJECTS!TPRESENTTHE#OMPANY}SOVERSEASPROJECTSAREASFOLLOWS .AM.GUM(YDROELECTRIC0OWER0LANT0ROJECT ,ASTYEARISTHEFOURTHYEARTHATTHE#OMPANYINVESTED IN3OUTH%AST!SIA%NERGY,IMITED FOR THEMEGAWATT.AM.GUM(YDROELECTRIC0OWER0LANTIN,AO0$24HEPROJECTISCURRENTLYPERCENTCOMPLETEDANDEXPECTEDTOSTARTITSINITIALOPERATIONIN "ESIDESTHE#OMPANYHOLDINGPERCENTSTAKETHE PROJECT SHAREHOLDERS INCLUDE#H+ARNCHANG0UBLIC#OMPANY,IMITEDHOLDINGPERCENT THEGOVERNMENTOF,AO0$2HOLDINGPERCENT"ANGKOK%XPRESSWAY0UBLIC#OMPANY,IMITEDHOLDINGPERCENTANDOTHERSHAREHOLDERSHOLDINGPERCENT (ONGSA4HERMAL0OWER0LANT0ROJECT 4HEMEGAWATTPOWERPLANTPRODUCESELECTRICITYFROMLIGNITE,OCATEDIN(ONGSA8AYABOURY0ROVINCE,AO0$2THEPROJECTISAJOINTVENTUREBETWEENTHE#OMPANYAND"ANPU0OWER#OMPANY,IMITEDEACHHOLDINGPERCENT .AM.GUM(YDROELECTRIC0OWER0LANT0ROJECT

21 Annual Report 2009

Ratchaburi Electricity Generating Holding Public Company Lim

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STAKE INTHIS JOINTVENTUREAND,AO(OLDING3TATE%NTERPRISEHOLDINGPERCENTSTAKE4WOJOINTVENTURECOMPANIESWEREESTABLISHED4HEYARE(ONGSA0OWER#OMPANY,IMITEDWHICHWASESTABLISHEDIN*ULYTOOPERATEELECTRICITYGENERATINGCONCESSIONAND0HU&AI-INING#OMPANY,IMITEDSETUPIN3EPTEMBERTOOPERATEMININGCONCESSIONTOSUPPLYLIGNITETOTHEPOWERPLANT4HECONCESSION ISAWARDEDFORYEARS4HEPROJECTISSCHEDULEDFORINITIALOPERATIONIN .AM.GUM(YDROELECTRIC0OWER0LANT0ROJECT 4HEMEGAWATPROJECT ISLOCATEDIN8AISOMBON0ROVINCE,AO0$2)TSJOINTDEVELOPERSARE2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDHOLDINGPERCENT'-3,AO#OMPANY,IMITEDHOLDINGPERCENT-ARUBENI#ORPORATIONHOLDINGPERCENTAND,AO(OLDING3TATE%NTERPRISEHOLDINGPERCENT4HEPLANTWILLBEGINITSCOMMERCIALOPERATIONIN4HEPROJECTISCURRENTLYUNDERNEGOTIATIONONTARIFFWITH%'!4 8E0IAN8E.AMNOY(YDROELECTRIC0OWER0LANT0ROJECT 4HEMEGAWATTPROJECTISLOCATEDIN!TTAPUEAND*AMPASAK0ROVINCESIN,AO0$24HEJOINTDEVELOPERSFORTHISPROJECTARE2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDHOLDINGPERCENT+OREABASED3+%NGINEERING#ONSTRUCTION#OMPANY,IMITEDHOLDINGPERCENT+OREA7ESTERN0OWER#OMPANY,IMITEDPERCENTANDTHEGOVERNMENTOF,AO0$2PERCENT4HEPROJECTWILLBEGIN ITSCOMMERCIALOPERATIONIN4HEPROJECTISCURRENTLYNEGOTIATINGWITH%'!4ONTARIFF 4HE#OMPANYHASALWAYSSOUGHTTHEOPPORTUNITYTOEXPANDITSINVESTMENTINELECTRICITYGENERATINGBUSINESSINOVERSEASMARKETS)NADDITIONTO)NDONESIA6IETNAMAND#AMBODIAWHEREDEMANDGROWTHISHIGHTHE#OMPANYIS LOOKINGINTOOPPORTUNITIESTO INVEST INOTHERCOUNTRIESSUCHAS!USTRALIATHE0HILIPPINESANDSOME!FRICANCOUNTRIES4HE#OMPANYFOCUSESITSINVESTMENTINALREADYOPERATINGPROJECTSINORDERTOLIMITANDCONTROLRISKSTHATMAYARISEDURINGTHEPROJECTDEVELOPMENTPHASE)NADDITIONTHE#OMPANYCANIMMEDIATELYACKNOWLEDGETHEOPERATINGPERFORMANCE )NVESTMENTINALTERNATIVEENERGY +HAO+OR7IND&ARM0ROJECT0HETCHABUN0ROVINCE 4HE#OMPANYTHROUGH2ATCHABURI%NERGY#OMPANY,IMITEDHASPERCENTINVESTMENTINTHE+HAO+OR7IND&ARM0ROJECT4HEPROJECTISLOCATEDIN+HAO+OR$ISTRICT0HETCHABUN0ROVINCE4HEMEGAWATTPLANTWILLGENERATEELECTRICITYFROMITSWINDTURBINESEACHWITHMEGAWATTCAPACITY4HEPROJECTHASADDEROF"AHTPERUNITFORYEARSSUBSIDIZEDBYTHE-INISTRYOF%NERGY4HEINVESTMENTINTHISPROJECTISINLINEWITHTHEGOVERNMENT}SALTERNATIVEANDGREENENERGYPOLICY )T ISEXPECTED TOSTARTCOMMERCIALOPERATION IN4HE#OMPANYWILLHAVEMEGAWATTSFROMTHISPROJECTACCORDINGTOITSSHAREHOLDINGPROPORTION !LTERNATIVE%NERGY0OWER0LANT0ROJECT #ONSIDERING THECOUNTRY}SALTERNATIVEENERGYPOTENTIALANDTHAT THEGOVERNMENT ISPROMOTINGINVESTMENTINTHISAREABYPROVIDINGADDERFORFINANCIALSUBSIDYWHICHVARIESACCORDINGTOTHETYPEOFENERGYTHE#OMPANYTHEREFOREEMPHASIZESINDEVELOPINGALTERNATIVEENERGYPOWERPLANTSUCHASBIOMASSPOWERPLANTWHICHUSESAGRICULTURALWASTEASFUEL4HE#OMPANYHASAPOLICYTOWHOLELYINVESTINORJOINWITHCAPABLEPARTNERSUNDERSUBSTANTIALSUBSIDYFROMTHEGOVERNMENT0UBLICANDCOMMUNITYPARTICIPATIONANDACCEPTANCEAREHIGHLIGHTEDINORDERTOPROMOTESUSTAINABLEDEVELOPMENT

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3OLAR%NERGY&EASIBILITY3TUDY 4HE#OMPANYHASCLOSELY FOLLOWEDALTERNATIVEENERGY TECHNOLOGY PROGRESS ESPECIAL LY SOLAR ENERGY4HE#OMPANYWILLHAVETOSTUDYANDFINDTHERIGHTTECHNOLOGYANDTHEFEASIBILITYINTERMOFCOMMERCIALIN4HAILAND )NVESTMENTINRELATEDBUSINESSES 0OWER0LANT/PERATIONAND-AINTENANCE #HUBU2ATCHABURI%LECTRIC3ERVICES #OMPANY,IMITED 4HE#OMPANYAND#HUBU%LECTRIC0OWER4HAILAND#OMPANY,IMITED INVESTEDPER CENT EQUALLY IN#HUBU2ATCHABURI%LECTRIC3ERVICES#OMPANY,IMITEDWHICHHASACONTRACT TOPROVIDEPOWERPLANTOPERATIONSANDMAINTENANCESERVICE TO THEMEGAWATT POWERPLANTOF2ATCHABURI0OWER#OMPANY,IMITED4HECONTRACTLASTSFORYEARSSTARTINGIN%'!4ISSUBCONTRACTEDTOPROVIDETHESERVICE 2!4#(,AO3ERVICES#OMPANY,IMITED 2!4#(,AO3ERVICES#OMPANY,IMITEDINWHICHTHE#OMPANYHOLDSPERCENTSTAKEANDISLOCATEDIN,AO0$2HASBEENAWARDEDTHECONTRACTTOOPERATEANDMAINTAINTHEMEGAWATT.AM.GUM(YDROELECTRIC0OWER0LANTBY.AM.GUM0OWER#OMPANY,IMITEDSTARTINGFROM*ULYTILLTHEENDOFTHECONCESSIONPERIOD%'!4ISTHESUBCONTRACTORFORTHEOPERATIONSANDMAINTENANCEOFTHEPOWERPLANTANDDAM2!4#(,AO3ERVICES#OMPANY,IMITEDMEANWHILEPROVIDESMAINTENANCESERVICEFORTHECOMPOUNDBUILDINGSANDOTHERFACILITIESASWELLASGENERALADMINISTRATORSSERVICES 'ASTURBINEMAINTENANCEFACILITYOF%'!4$IAMOND3ERVICE#OMPANY,IMITED )N/CTOBERTHE#OMPANYENTERED INTOA JOINTVENTUREAGREEMENT INESTABLISHING%'!4$IAMOND3ERVICE#OMPANY,IMITEDWITHTHEOBJECTIVETOPROVIDEMAINTENANCESERVICEFORTHEPOWERPLANTGASTURBINE4HESERVICEAREACOVERS!SIANCOUNTRIESNAMELY4HAILAND-ALAYSIA3INGAPORE,AO0$2-YANMAR6IETNAM#AMBODIA"RUNEI!USTRALIA.EW:EALAND)NDIA0AKISTAN"ANGLADESH3RI,ANKA"HUTAN.EPAL!FGHANISTANAND-ALDIVES4HEMAINTENANCEFACILITYWILLSTART ITSOPERATIONS IN%'!4$IAMOND3ERVICE#OMPANY,IMITED}SSHAREHOLDERSINCLUDE%'!4PERCENT-ITSUBISHI(EAVY)NDUSTRIES,TDPERCENT-ITSUBISHI#ORPORATIONPERCENTANDTHE#OMPANYPERCENT4HEJOINTINVESTMENTINTHEPROJECTHELPSREDUCEDTIMEANDEXPENSESRELATEDTOGASTURBINEMAINTENANCEANDIT ISNOTNECESSARYTOHAVETHEMDONEOVERSEAS!SARESULTTHEPOWERPLANTHASHIGHERAVAILABILITY)NADDITIONITPROMOTESADVANCEDTECHNOLOGYTRANSFERWHICHHELPSIMPROVESKILLSOFLOCALENGINEERSANDPROMOTESFUTUREINDEPENDENCE 2EALIZINGTHATFUELSUPPLYANDDELIVERYAREKEYSUCCESSFACTORS INPOWERGENERATIONBUSINESSTHE#OMPANYHASCONDUCTEDFEASIBILITYSTUDYINCOALMINEIN!USTRALIAINADDITIONTOTHESURVEYIN)NDONESIA



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4OENABLE THE#OMPANY TOOPERATE THEBUSINESS INCOMPLIANCEWITH RELATED LAWS THE#OMPANYESTABLISHEDASUBSIDIARYCALLED2()NTERNATIONAL#ORPORATION#OMPANY,IMITEDIN/CTOBER4HESUBSIDIARY}SCOREBUSINESSISTOINVESTINENERGYRELATEDBUSINESSESINOTHERCOUNTRIES !SSETS-ANAGEMENT

4HE#OMPANY VIEWS THAT ASSETMANAGEMENT THAT PROMOTESOPERATIONALEFFICIENCY IS IMPORTANTANDMUSTBECOMPLIANTWITH INTERNATIONALSTANDARD4HE#OMPANYHAS THROUGHOUT THESEYEARS INVESTEDANDDEVELOPEDVARIOUSPROJECTSINANDOUTSIDE4HAILAND)TSASSETSCOMPRISEMANYPOWERPLANTSTHATAREOPERATEDBYITSSUBSIDIARIESANDJOINTVENTURES!SARESULTITHASTOENSUREEFFICIENTMANAGEMENTANDREGULARMONITORINGINORDERTOENSURETHATTHEOPERATIONSANDEFFICIENCYOFITSSUBSIDIARIESAREINLINEWITHTHEPRESETPOLICYANDSTRATEGICGOALS )NORDERTOBEINVOLVEDINPOLICYANDGOALSETTINGMANAGEMENTANDMONITORINGOFITSINVESTMENTPROJECTS}OPERATINGPERFORMANCETHE"OARDOF$IRECTORSASSIGNEDITS$IRECTORSANDEXECUTIVESTOBEREPRESENTATIVEDIRECTORSINTHE"OARDOF$IRECTORSAND%XECUTIVE#OMMITTEESOFITSSUBSIDIARIESANDJOINTVENTURES 4HE#OMPANYHASTOMONITORTHEEFFICIENCYINDICATORSOFALLPOWERPLANTSUNDERITS'ROUP3UCHINDICATORSAREFOREXAMPLE!VAILABILITY0AYMENTFUELCOSTPERUNITANDHEATRATEPERUNIT4HEBENCHMARKAGAINSTOTHERPOWERPLANTSINTHESAMECATEGORYHASBEENDONEINORDERTOIMPROVEITSEQUIPMENTANDSYSTEMTOENSURETHAT THEPOWERPLANTHASFULL RELIABILITIESANDAVAILABILITY TOACHIEVE ITSMISSIONSANDOBJECTIVES)NTHE#OMPANYORGANIZEDAJOINTMEETINGATTENDEDBYTOPEXECUTIVESOFITSAFFILIATESONCEAMONTH4HEOBJECTIVESARETOFOLLOWUPWITHTHEOPERATIONSANDMAINTENANCEOFTHE'ROUP}SPOWERPLANTSEXCHANGEEXPERIENCE

INVARIOUSAREASINCLUDINGTECHNICALENVIRONMENTANDCOMMUNITYRELATIONSANDTOJOINTLYMANAGEEQUIPMENTANDFACILITIESTHATTHEYMAYSHAREFORMUTUALBENEFITSANDECONOMICVALUE2. Financial Management 4HE#OMPANYHASREGULARLYMONITOREDCHANGESINTHEMONETARYMARKETINORDERTOBEABLETOPREPAREVARIOUSTYPESOFCREDITSTOSUITDIFFERENTINVESTMENTNEEDS IN DIFFERENT PROJECTS 4HE#OMPANYALSOREGULARLYMONITORS THE FINANCIALMANAGEMENTEFFICIENCYOFITSUBSIDIARIESANDJOINTVENTURESTHROUGHITSREPRESENTATIVESWHOSERVEASMEMBERSOFBOARDOFDIRECTORSDIRECTORSORMANAGEMENTOFTHESUBSIDIARIESANDJOINTVENTURES)NTHE#OMPANYENGAGEDINNEGOTIATIONONINTERESTEXPENSEREDUCTIONEFFORTFORITSSUBSIDIARYANDJOINTVENTUREASFOLLOWS

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2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITED !CCORDINGTOITSLOANAGREEMENTDATED*UNETHEINTERESTRATEWILLINCREASETO-,2PERCENTPERANNUMSINCE*ULY2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITEDNEGOTIATEDWITHTHEEXISTINGCREDITORSTOLOWERLOANINTERESTRATESANDFINALLYSIGNEDMEMORANDUMOFUNDERSTANDINGONINTERESTRATEADJUSTMENTON*UNE4HENEWINTERESTRATEFORTHEREMAININGLOANPERIODDURING*ULYAND-ARCHIS-,2TO-,2PERCENT4HISALLOWS2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITEDTOSAVEAPPROXIMATELY"AHTMILLIONINTERESTEXPENSETHROUGHOUTTHEREMAININGLOANPERIOD 2ATCHABURI0OWER#OMPANY,IMITED 2ATCHABURI0OWER#OMPANY,IMITEDNEGOTIATEDWITHITSCREDITORSTOLOWERTHEINTERESTRATESFOR4HAI"AHTLOANINITS$ECEMBERLOANAGREEMENT!SARESULTTHELOANINTERESTISLOWEREDFROMFREEFLOAT-,2PERCENTPERYEARTOFIXEDRATESOFPERCENTPERYEARFORFIVEYEARSDURING3EPTEMBERAND!UGUST2ATCHABURI0OWER#OMPANY,IMITEDWILLTHENBEABLETOSAVE"AHTMILLIONINTERESTEXPENSEINTHEFIVEYEARPERIOD 3. Organizational Management )NTHEFOLLOWINGACTIVITIESHAVEBEENIMPLEMENTEDTOINCREASEWORKINGPROCESSEFFICIENCY 3UCCESSION0LAN 4HE#OMPANYHASCOMPLETEDITSSUCCESSIONPLANIN4HEPLANISAIMEDTOHAVEINPLACETHEGUIDELINESFORPREPARINGITSPERSONNELBOTHINTERMSOFQUANTITYANDQUALITYTOTAKEHIGHERMANAGEMENTROLESTOREPLACETHEVACANCYANDRETIREMENT4HESUCCESSIONPLANISREFERREDTOWHENCONSIDERINGAPPOINTINGTHE#OMPANY}SMANAGERIALPOSITIONSSTARTINGFROMVICEPRESIDENTLEVELUP )NFORMATION4ECHNOLOGY3YSTEM$EVELOPMENT 4HE#OMPANYHASKEPTONDEVELOPING ITS INFORMATIONSYSTEMTOENSUREEFFICIENT INFORMATIONMANAGEMENTTHATENHANCESTHE#OMPANY}SMANAGEMENTANDAGILITY)NTHE#OMPANYUPGRADEFROM3!02TO3!0%200ROGRAM4HISHELPFACILITATEQUICKLINKANDACCESSTOVARIOUSINTERNALDATABASES4HE#OMPANYALSOINTRODUCED#/'./36ERSIONABUSINESSINTELLIGENCESOFTWAREFORDATAWAREHOUSINGANDINFORMATIONANALYSIS7ITHTHISSOFTWARETHE#OMPANYCANCOMPILEINFORMATIONFROMNUMEROUSDATABASESINPREPARINGANALYTICALREPORTSFORMANAGERIALDECISIONMAKING #RISIS-ANAGEMENTAND#OMMUNICATION0LAN 4HE#OMPANYHASTOENSUREEFFECTIVECRISISMANAGEMENTPLANTHATSUPPORTSITSVISIONANDMISSIONASWELLASITSPOSITIONASALISTEDCOMPANYONTHE3TOCK%XCHANGEOF4HAILAND4HEPLANHELPSPREVENTADVERSEIMPACTONCRISISWHILEMAINTAININGANDSTRENGTHENINGSTAKEHOLDERS}TRUSTANDCONFIDENCEINTHE#OMPANY 4HE#RISIS#OMMUNICATION0LANWASCOMPLETEDINLATE)TWILLBEUSED AS A PRACT ICE GUIDEL INE FORCOMMUNICATINGFACT TOTHEPUBLICANDCONCERNEDPARTIES IN TERMSOFCRISIS4HEMAINOBJECTIVEISTOENSUREPUBLICCONFIDENCE TOWARDS THE#OMPANY}SBUSINESS CONTINUITY AND TO PREVENTPOSSIBLEIMPACTTHATMAYFURTHEREXPAND



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ANDDAMAGETHE#OMPANY}SREPUTATION)TWILLALSOBEUSEDASTHECOMMUNICATIONMANUALDURINGCRISISTIMEANDFORTRAININGINPREPARATIONOFPOSSIBLECRISIS4HE#OMPANYWILLBEGINITSTRAININGUNDERTHEPLANINTHEFIRSTQUARTEROF

4. Social and Environment Responsibility #ORPORATE#ITIZENSHIP p l,OVE THE&ORESTS AND THE#OMMUNITY mBEINGORGANIZED FOR THESECONDCONSECUTIVEYEAR INCOOPERATIONWITH THE2OYAL&OREST $EPARTMENTUNDERTHE-INISTRYOF.ATURAL2ESOURCESAND%NVIRONMENTTHE PROJECTCOMPRISES THREEMAJORACTIVITIES4HEYARECOMMUNITY FOREST #OMPETITION l+LA9IM9OUTH#AMPmANDTHE l#OMMUNITY&OREST .ETWORK3EMINARm p )NORGANIZINGTHECOMMUNITYFORESTCOMPETITIONTHE#OMPANYPREPARED AWARDSFOR THEWINNERS4HE"AN4A0A0AO#OMMUNITY&OREST 4A0A$OOK3UBDISTRICT-AE4A$ISTRICT,AMPOON0ROVINCEWONTHE GRANDPRIZENATIONAL LEVELANDWONATROPHYFROM(2(0RINCESS-AHA #HAKRI3IRINDHORN4HEl$ON#HAO0U#OMMUNITY&ORESTm"AN+UD$OOK 3AI-OON3UBDISTRICT.AM0ONG$ISTRICT+HON+AEN0ROVINCEWONTHE OUTSTANDINGCOMMUNITYFORESTFORFOODBANKAWARD4HEREAREOTHERFOUR REGIONALAWARDS FOR THEOUTSTANDINGCOMMUNITY FORESTPROVINCIAL AWARDSANDMERITAWARDS p l+LA9IM9OUTH#AMPmINYOUNGPEOPLEAGEDBETWEEN YEARSOLD FROMCOMMUNITYFORESTS IN#HIANG-AI#HIANG2AI0AYAO ,AMPOON-AE(ONG3ONANDTHOSEFROM2ATCHABURIHAVEATTENDEDTHE NIGHTDAYCAMP0ARTICIPANTSHADTHECHANCETOLEARNANDUNDERSTAND THENATUREOFCOMMUNITYANDPRESERVEDFORESTS4HEYHAVEDEVELOPED ANEW THINKINGPROCESS REALIZED THEVALUEANDHUMANAND FOREST INTERDEPENDENCYEMBRACEDTOTHEIROWNENVIRONMENTALRESPONSIBILITYAND LATER IMPLEMENTEDWHAT THEY LEARNED INTO REAL ACTION IN THEIR OWN COMMUNITIES4HECAMPWASHELDTWICEAT$OI3UTHEP0UI.ATIONALPARK #HIANG-AI0ROVINCEAND$OI,UANG.ATIONAL0ARK#HIANG2AI0ROVINCE p l#OMMUNITY&OREST.ETWORK3EMINARmREPRESENTATIVESFROMSIXWINNINGCOMMUNITYFORESTSNATIONALWINNERFOODBANKANDREGIONALAWARDEESPARTICIPATEDINTHESEMINAR4HEYALLHADACHANCETOEXCHANGEANDSHARETHEIREXPERIENCESINCOMMUNITYFORESTRYMANAGEMENTINALLAREASRANGINGFROMSOCIALECONOMICANDSUSTAINABILITYASPECTS!STUDYTRIPWASARRANGEDTOTHE"AN4A0A0AO#OMMUNITY&ORESTWHICHWONTHENATIONALAWARDINANDWASRECOGNIZEDASTHEMODELCOMMUNITYFOREST0ARTICIPANTSCANBRINGBACKHOMEANDAPPLYTHEEXPERIENCEEXAMPLEANDKNOWLEDGETHEY LEARNEDFROMTHISACTIVITY TOTHEIR LOCALFORESTMANAGEMENT p %MPLOYEE6OLUNTEERSINTHE#OMPANYESTABLISHEDTHE3OCIAL2ESPONSIBILITY!FFAIR#OMMITTEE WHICHSERVESASAMECHANISMTODRIVEEMPLOYEES} INVOLVEMENT INSOCIALACTIVITIES RATHER THAN THOSEINITIATEDBYTHE#OMPANY%MPLOYEESCANPROPOSEPROJECTSUNDERTHESETCRITERIAANDCONDITIONS FORFINANCIALSUPPORT,ASTYEARTHEEMPLOYEES}INITIATIVEANDPROJECTSTHATARESATISFACTORILYSUCCESSFULISTHE l2ECYCLEGARBAGEBANKmPROJECTIMPLEMENTEDAT"AN!NG3UA$AM3CHOOL#HACHOENGSAO0ROVINCE

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5. Awards of Recognition 3OCIAL2ECOGNITION p'OOD#ORPORATE'OVERNANCE 4HE#OMPANYWON THE4OP#ORPORATE'OVERNANCE2EPORT!WARDSAT THE3%4!WARDS ORGANIZEDBYTHE3TOCK%XCHANGEOF4HAILAND4HEAWARDWASPRESENTEDTOLISTEDCOMPANIESWITH OUTSTANDINGCORPORATEGOVERNANCEREPORTINCOMPLIANCEWITHTHECORPORATEGOVERNANCEPRACTICE 4HE#OMPANYWASRATED l%XCELLENTm INTHE#ORPORATE'OVERNANCE!SSESSMENTOF4HAI,ISTED #OMPANIES3CHEMECONDUCTEDBYTHE4HAI )NSTITUTEOF$IRECTORS!SSOCIATION THE3TOCK %XCHANGEOF4HAILAND3%4ANDTHE3ECURITIESAND%XCHANGE#OMMISSIONOF4HAILAND3%#ON LISTEDCOMPANIES4HE#OMPANYSCOREDPERCENTAGAINSTAVERAGESCOREOFPERCENT +EY FACTORS FOR THE ASSESSMENT ARE THE SHAREHOLDERS} RIGHT EQUITABLE TREATMENT OF ALL SHAREHOLDERSSTAKEHOLDERS} RIGHTS INFORMATIONDISCLOSUREAND TRANSPARENCYAND THE"OARD OF$IRECTORS}RESPONSIBILITIES !T THE3HAREHOLDERS}-EETING!SSESSMENT3CHEMEARRANGEDBY THE4HAI )NVESTORS !SSOCIATION THE#OMPANYWAS RECOGNIZEDAS l%XCELLENTAND'OOD%XAMPLEmAMONG PARTICIPATINGLISTEDCOMPANIES p4HE#OMPANYWASGRANTEDTHEl/UTSTANDING#ONSERVATIONOF"IODIVERSIFY!WARD0UBLIC0ARTICIPATION %NCOURAGEMENT!WARDm FROMTHE.ATURAL2ESOURCEAND%NVIRONMENT0OLICYAND0LANNING/FFICE -INISTRYOF.ATURAL2ESOURCESAND%NVIRONMENTIN-AY4HEAWARDREFLECTSTHESUCCESSOFTHE $EPARTMENT4HEPROJECTLASTSFORFIVEYEARSANDPROMOTESAWARENESSOFECOLOGICALSYSTEM CONSERVATIONANDTHEESTABLISHMENTOFSTRONGCOMMUNITYFORESTNETWORKINORDERTOPROMOTEEFFICIENT ANDSUSTAINABLEFORESTPRESERVATION p 4HE#OMPANYWASRANKED4HAILAND}SRDANDSTAMONGCOMPANIESIN!SIA0ACIFICINTHE !SIAN3USTAINABILITY2ATING4HE#OMPANYWASRANKEDTHAMONG4HAICOMPANIESINBY#32!SIA ANINTERNATIONALBODYPROMOTINGCORPORATESOCIALRESPONSIBILITYACTIVITIESAMONGCOMPANIESIN!SIA0ACIFIC p 2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITEDWONTHE l4APROGGE!WARD%XCELLENCEIN7ATER %NERGYmFORITSCOOLINGWATERREUSEPLANT#720 p2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITEDWONTHE l/UTSTANDING%NTERPRISEIN,ABOUR 2ELATIONSAND7ELFARESmFORTHESECONDCONSECUTIVEYEARFROMTHE$EPARTMENTOF,ABOURAND7ELFARE -INISTRYOF,ABOUR4HEAWARDREFLECTSTHE#OMPANY}SCOMMITMENTANDDEVELOPMENTOFGOODLABOUR RELATIONS!TTHESAMETIMETHEAWARDCONFIRMSTHE#OMPANY}SABILITYTOPROVIDEGOODEMPLOYEE BENEFITSRESULTINGINJOBSECURITYSAFETYANDQUALITYOFWELLBEINGWHICHWILLHELPEFFECTIVELYPREVENT CONFLICTOFINTERESTWHILEINCREASINGSECURITYANDSAFETYINWORKPLACE

l,OVETHE&ORESTSANDTHE#OMMUNITYmPROJECTWHICHISACOOPERATIONWITHTHE2OYAL&OREST

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$EARSHAREHOLDERS 2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDTHE#OMPANYCONTINUESOPERATINGITSBUSINESSBYADHERINGTOITSCORPORATEMISSIONTHATISTOINVESTDEVELOPANDOPERATEELECTRICITYGENERATINGANDRELATEDBUSINESSTOCREATEPROFITANDGOODRETURNSTOITSSHAREHOLDERS)NOURTWOLARGESCALEPOWERPLANTPROJECTSIN,AO0EOPLE}S$EMOCRATIC2EPUBLIC,AO0$2HAVESIGNIFICANTPROGRESS4HEMEGAWATT.AM.GUM(YDROELECTRIC0OWER0LANT0ROJECT INWHICH THE#OMPANYHOLDSPERCENTSTAKEANDTHERESTHELDBY#H+ARNCHANG0UBLIC#OMPANY,IMITEDANDTHEGOVERNMENTOF,AO0$2ISNOWPERCENTCOMPLETEDANDWILLSTART ITS INITIAL OPERATION ANDDISTRIBUTE ELECTRICITY TO THE%LECTRICITY'ENERATING!UTHORITYOF4HAILAND%'!4 IN4HEOTHERPROJECT ISTHEMEGAWATT(ONGSA4HERMAL0OWER0LANTINWHICHTHE#OMPANYHOLDSPERCENTSTAKEANDTHERESTHELDBY"ANPU0UBLIC#OMPANY,IMITEDANDTHEGOVERNMENTOF,AO0$2HASALREADYSIGNEDCONCESSIONAGREEMENTSWITHTHEGOVERNMENTOF,AO0$2TOOPERATEPOWERGENERATINGANDLIGNITEMININGBUSINESSANDWILLENTER INTOTHEPOWERPURCHASEAGREEMENTWITH%'!4INEARLY 4HE#OMPANYHASADJUSTED ITSBUSINESSPLANAND INVESTMENTSTRATEGYBYPLACINGMOREEMPHASISONSMALLPOWERPRODUCERANDALTERNATIVEENERGYPROJECTS4HISISINLINEWITHTHEGOVERNMENT}SPOLICYTOREDUCERISKRELATEDTOFUELSOURCINGANDFUELPRICEFLUCTUATIONASWELLASTOPROMOTETHEPRODUCTIONANDUSEOFALTERNATIVEENERGYWITHSTRATEGIC INCREASEOF FUELSOURCESDIVERSITY4HE#OMPANYENSURED THAT THISPOLICY ISEMBRACED

Message from the Chairmanof the Board of Directors

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Annual Report 2009 Ratchaburi Electricity Generating Holding Public Com

pany Limited

ANDIMPLEMENTEDBYALL ITSWHOLLYOWNSUBSIDIARYNAMELY2ATCHABURI%NERGY#OMPANY,IMITED!SPARTOFTHEPOLICYIMPLEMENTATION THE#OMPANYHASSOLD ITSENTIREPERCENTSTAKE IN3USTAINABLE%NERGY#ORPORATION,IMITED THEDEVELOPEROFAMEGAWATTWINDFARMTO2ATCHABURI%NERGY#OMPANY,IMITED)NADDITION2ATCHABURI%NERGY#OMPANY,IMITEDEXPANDEDITSINVESTMENTTOINCREASEGENERATINGCAPACITYINTHE04/!%XPANSION!SSOCIATED'AS0OWER0LANT0ROJECTTHATUSESFLAREGASABYPRODUCTSFROMCRUDEOILRIGASTHESOURCEOFENERGYANDISNOWNEGOTIATINGTOINVESTINABIOMASSPOWERPLANTANDCOGENERATIONPOWERPLANT 7ITHITSOBJECTIVETOMORESTRENGTHENFINANCIALHEALTHTHE#OMPANYHASSOUGHTINVESTMENTOPPORTUNITIESINRELATEDBUSINESSES )N2!4#(,AO3ERVICES#OMPANY,IMITEDWASESTABLISHED IN,AO0$2TOPROVIDEPOWERPLANTOPERATIONANDMAINTENANCESERVICEFORTHE.AM.GUM(YDROELECTRIC0OWER0LANT0ROJECT4HE#OMPANYALSOCOINVESTEDWITH"ANPU0UBLIC#OMPANY,IMITED'ROUPINTHE0HU&AI-INING#OMPANY,IMITEDTHATHASBEENAWARDEDALIGNITEMININGCONCESSIONFROMTHEGOVERNMENTOF,AO0$2TOSUPPLY LIGNITETO THE(ONGSA4HERMAL0OWER0LANT4HE#OMPANYINCOOPERATIONWITH-ITSUBISHI'ROUPAND%'!4INVESTEDIN%'!4$IAMOND3ERVICE#OMPANY,IMITEDTOPROVIDEGASTURBINEREFURBLISHMENTSERVICEFORPOWERPLANTS )NADDITIONTONEWINVESTMENTANDPROJECTDEVELOPMENTTHE#OMPANYFOCUSESONTHEEFFICIENCYOFTHECURRENTLYOPERATINGPOWERPLANTS4HISISTOENSURETHEIRAVAILABILITYCOSTEFFICIENCYANDENVIRONMENTALFRIENDLINESS)NTHEPASTYEARTHE2ATCHABURI0OWER0LANT4RI%NERGY0OWER0LANT2ATCHABURI0OWER}S0OWER0LANTAND04/!!SSOCIATED'AS0OWER0LANTHAVEREGULARLYMAINTAINEDTHEIRFACILITIESACCORDINGTOTHEPLANTOUTDGEPLAN4HEYHAVEATOTALINSTALLEDCAPACITYOFMEGAWATTS2ATCHABURI0OWER0LANTINVESTEDAPPROXIMATELY"AHTMILLIONINCOOLINGWATERSENSEPLANT7ITHTHEULTRAFILTER5&ANDREVERSEOSMOSIS2/TECHNOLOGIESTREATEDWATERCANBEREUSEDINTHEPRODUCTIONPROCESSENABLINGTHEPLANTTOREDUCEPRODUCTIONCOSTANDUSELESSWATERFROMNATURALRESOURCES#ONSEQUENTLYTHEVOLUMEOFEFFLUENTRELEASEDTONATURALWATERWAYSHASBEENSIGNIFICANTLYREDUCED4HE2ATCHABURI0OWER0LANTSERIOUSLY IMPLEMENTEDCOSTEFFICIENCYMEASURESWITHEMPHASISON INVENTORYMANAGEMENT4HE6ENDOR-ANAGED)NVENTORY6-)SYSTEMISUSED IN THEMANAGEMENTOFCOMMONSPAREPARTSTHATAREAVAILABLEFROMLOCALSUPPLIERSTOREDUCEINVENTORYCOSTS!TTHESAMETIMESPAREPARTSARECLEARLYCATEGORIZEDWHILESPAREPARTRECORDINGISCOMPAREDAGAINSTTHEPOWERPLANTMAINTENANCEPLAN)TISTARGETEDTOREDUCETHEPLANT}SEXPENSESBY"AHTMILLIONINFOURYEARSDURINGAND 4HEHEALTHYPERFORMANCECLEARLY REFLECTED THE#OMPANY}S FINANCIALSTABILITYANDCONSTANTGROWTH4HE#OMPANYHAS"AHTMILLIONNETPROFITOREARNINGPERSHARE)N3EPTEMBERTHE#OMPANYPAIDINTERIMDIVIDENDTOSHAREHOLDERSAT"AHTPERSHAREORPERCENTEARNINGPERSHARE4OTALPAIDDIVIDENDIS"AHTMILLION !MIDSTTHEECONOMYDOWNTURNANDSLOWGROWTHOFDOMESTICPOWERDEMANDTHE#OMPANYHASTOFOCUSONEXPANDINGITSPROFITABILITYANDGENERATINGCAPACITYTHROUGHACQUISITIONOFORJOINTINVESTMENTINEXISTINGINDEPENDENTPOWERPRODUCERSINOROUTSIDE4HAILAND4HE#OMPANYALSOFOCUSESITSINVESTMENTINSMALLPOWERPRODUCERANDALTERNATIVEENERGYPROJECTSINTHECOUNTRYASWELLASRELATEDBUSINESSES'OODCORPORATEGOVERNANCEPRUDENTRISKMANAGEMENTHUMANRESOURCEDEVELOPMENTFORCORPORATEGROWTHPUBLICPARTICIPATIONANDSOCIALANDENVIRONMENTALRESPONSIBILITYREMAINTHEPRIORITIESTHE#OMPANYWILLHOLDONTOINTHEIROPERATIONSINONGOINGYEARS /NBEHALFOFTHE#OMPANY}S"OARDOF$IRECTORSEXECUTIVESANDEMPLOYEES)WOULDLIKETOEXTENDMYSINCERESTAPPRECIATIONTOALLSHAREHOLDERSANDSTAKEHOLDERSFORTHESUPPORTANDTRUSTOFFEREDTOUSFORTHELONGPERIOD)BELIEVETHATWITHANEXPERIENCEDANDKNOWLEDGEABLEMANAGEMENTTEAMSTRONGBUSINESSPARTNERSFINANCIALSTABILITYANDSUPPORTFROM%'!4WHICHISOURMAJORSHAREHOLDERTHE#OMPANYWILLCONTINUEITSGROWTHSECURELYANDSUSTAINABLY7EAREREADYTOBECOMEALEADINGINDEPENDENTPOWERPRODUCERINTHEREGIONTHATISTRUSTEDBYTHEPUBLICANDHASTHEABILITYTOGENERATESATISFACTORYRETURNONINVESTMENTFORSHAREHOLDERSWHILEMAKINGCONTRIBUTIONTOOURSOCIETY -R3OMBAT3ARNTIJAREE #HAIRMANOFTHE"OARDOF$IRECTORS

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Major Shareholders

Top 10 Major Shareholders 2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDASOF3EPTEMBER No. Shareholders Number of Share Percentage

4HE%LECTRICITY'ENERATING!UTHORITYOF4HAILAND%'!4 "ANPU0UBLIC#OMPANY,IMITED'ROUPED "ANPU0UBLIC#OMPANY,IMITED "ANPU0OWER#OMPANY,IMITED ./242534./-).%%3,)-)4%$'ROUPED ./242534./-).%%3,4$ ./242534./-).%%3,)-)4%$./24(%2.42534'5%2.3%9#,)%.43 ./242534./-).%%3,)-)4%$-%,"/52.%"2!.#(&5452%&5.$#,)%.43 ./242534./-).%%3,)-)4%$.%7:%!,!.$350%2!..5!4)/.&5.$ ./242534./-).%%3,)-)4%$.4'3&/.$36//2 '%-%.%2%+%.).'"%2/%036%26/%2 3OCIAL3ECURITY/FFICE'ROUPED 3OCIAL3ECURITY/FFICESOURCES 3OCIAL3ECURITY/FFICESOURCES 34!4%342%%4"!.+!.$42534#/-0!.9'ROUPED 34!4%342%%4"!.+!.$42534#/-0!.9 34!4%342%%4"!.+!.$42534#/-0!.9&/2,/.$/. 34!4%342%%4"!.+!.$42534#/-0!.9&/2#!.!$! 34!4%342%%4"!.+!.$42534#/-0!.9&/2!5342!,)! 34!4%342%%4"!.+!.$42534#/-0!.9&/2,/.$/.&/2-!3 4HE'OVERNMENT3AVINGS"ANK&UND !-%2)#!.).4%2.!4)/.!,!3352!.#%#/-0!.9,)-)4%$'ROUPED !-%2)#!.).4%2.!4)/.!,!3352!.#%#/-0!.9,)-)4%$!0%8 -%2)#!.).4%2.!4)/.!,!3352!.#%#/-0!.9,)-)4%$4)'%2 !-%2)#!.).4%2.!4)/.!,!3352!.#%#/-0!.9,)-)4%$!)!$0,53 "",!SSET-ANAGEMENT#OMPANY,IMITED'ROUPED "ANGKOK,IFE!SSUARANCE0UBLIC#OMPANY,IMITED 4HAI.6$2#OMPANY,IMITED 4OTALOF3HARESHELDBY4OP-AJOR3HAREHOLDERS 0ORTIONOF3HARESHELDBY-INOR3HAREHOLDERS 4OTALOF3HARES .OTE 4HE%LECTRICITY'ENERATING!UTHORITYOF4HAILAND%'!4ISASTATEOWNEDENTERPRISETHATOPERATESANDCOINVESTSWITHOTHERPARTIES INELECTRICITYPOWERANDRELATEDBUSINESS%'!4ISTHELARGESTSHAREHOLDEROFTHE#OMPANYITHASREPRESENTATIVESINTHE#OMPANY}S MEMBER"OARDOF$IRECTORS "ANPU'ROUPISAGROUPOF"ANPU0UBLIC#OMPANY,IMITEDANDITSASSOCIATEDCOMPANYTHATENGAGEDINCOREBUSINESSONCOALAND ELECTRICITYPOWERIN4HAILANDANDOVERSEA4HE6ONGKUSOLKITFAMILYANDTHEIRRELATEDCOMPANYAREITSMAJORSHAREHOLDER"ANPU0UBLIC #OMPANY,IMITEDHASREPRESENTATIVEINTHE#OMPANY}SMEMBER"OARDOF$IRECTORS 3HAREHOLDERSOF4HAI.6$2#OMPANY,IMITEDINITEMDONOTHAVEVOTINGRIGHTATTHESHAREHOLDERS}MEETING Share Distribution by Nationality Number of Shareholders Number of Share Percentage 4HAI &OREIGN 4OTALOF3HAREHOLDERS 2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITED}S!RTICLEOF!SSOCIATIONHASFORBIDENTHEFOREIGNSHAREHOLDERSNOTTO HOLDTHE#OMPANY}SSHARESINEXCESSOFPERCENTFROMTHETOTALOFSHARESSOLD

35Annual Report 2009


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Management Structure

.O .AME 0OSITION $ATEOF!PPOINTMENT 0RESENT4ERMIN/FFICE

2EMARKS .OANDARETHEREPRESENTATIVEDIRECTORSOFAMAJORSHAREHOLDER%'!4 .OISTHEREPRESENTATIVEDIRECTOROFAMAJORSHAREHOLDER"ANPU0UBLIC#OMPANY,IMITED .OISANEXECUTIVEDIRECTOR .OANDAREINDEPENDENTDIRECTORS

1. Board of Directors 4HE#OMPANY}SMANAGEMENTSTRUCTURECOMPRISESTHE"OARDOF$IRECTORSTHREECOMMITTEESANDONESUBCOMMITTEEAPPOINTEDBYTHE"OARDOF$IRECTORSTOSCREENDESIGNATEDISSUES4HECOMMITTEESANDSUBCOMMITTEEARETHE!UDIT#OMMITTEETHE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEETHE2ISK-ANAGEMENT#OMMITTEEANDTHE)NVESTMENT3UB#OMMITTEE4HE0RESIDENTISTHETOPEXECUTIVEPOSITIONINTHE#OMPANY !SOF$ECEMBERTHE"OARDOF$IRECTORSCONSISTEDOFMEMBERSWHOSENAMESARELISTEDASFOLLOWS

-R3OMBAT3ARNTIJAREE #HAIRMAN *ANUARY &IRST -R,AE$ILOKVIDHYARAT $IRECTORTHE(UMAN2ESOURCES $ECEMBER 3ECOND AND2EMUNERATION#OMMITTEE #HAIRMANANDTHE)NVESTMENT 3UB#OMMITTEE#HAIRMAN -R#HULASINGH6ASANTASINGH $IRECTOR *UNE 4HIRD -R3ATHIT,IMPONGPAN )NDEPENDENT$IRECTORAND !PRIL &IRST THE!UDIT#OMMITTEE#HAIRMAN -R.ATHI0REMRASMI )NDEPENDENT$IRECTORAND !PRIL &IRST THE!UDIT#OMMITTEE-EMBER -R-ETTA"ANTURNGSUK )NDEPENDENT$IRECTORANDTHE2ISK *UNE 3ECOND -ANAGEMENT#OMMITTEE#HAIRMAN -R7ITOON3IMACHOKEDEE $IRECTORTHE2ISK-ANAGEMENT *ANUARY &IRST #OMMITTEE-EMBERANDTHE )NVESTMENT3UB#OMMITTEE-EMBER -R+URUJIT.AKORNTHAP )NDEPENDENT$IRECTORTHE!UDIT *ANUARY &IRST #OMMITTEE-EMBERANDTHE )NVESTMENT3UB#OMMITTEE-EMBER -R!TCHADA+ESORNSOOK )NDEPENDENT$IRECTORTHE(UMAN !PRIL 3ECOND 2ESOURCESAND2EMUNERATION #OMMITTEE-EMBERANDTHE )NVESTMENT3UB#OMMITTEE-EMBER -R2ATANAPONG*ONGDAMGERNG $IRECTORANDTHE2ISK-ANAGEMENT !PRIL &IRST #OMMITTEE-EMBER -R0RAMOTE)NSWARNG $IRECTOR *ANUARY 3ECOND -R#HANIN6ONGKUSOLKIT $IRECTORANDTHE(UMAN .OVEMBER 4HIRD 2ESOURCESAND2EMUNERATION #OMMITTEE-EMBER -R.OPPOL-ILINTHANGGOON $IRECTOR0RESIDENTAND3ECRETARY /CTOBER 3ECOND TOTHE"OARDOF$IRECTORS

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-EMBERSOF THE"OARDOF$IRECTORSAREQUALIFIEDBY THEIR INDIVIDUALEXPERTISEANDVASTANDDIVERSEEXPERIENCES4HEYWEREAPPOINTEDAFTERATHOROUGHSELECTIONPROCESSINORDERTOENSURETHEIRABILITYTOPERFORMTHEIRDUTIESINPOLICYFORMULATINGSUPERVISINGANDOVERSEEINGTHE#OMPANY}S-ANAGEMENT}SPERFORMANCES 0ROFILESANDINFORMATIONABOUTTHE$IRECTORSAREPUBLISHEDINTHE!PPENDIX 2. Authorized Directors as the Companys Signatory 4HE#OMPANY}SAUTHORIZEDSIGNATORYARETHESIGNATURESOF-R3OMBAT3ARNTIJAREE#HAIRMANOFTHE"OARDOF$IRECTORSOR-R.OPPOL-ILINTHANGGOON0RESIDENTWITHTHE#OMPANY}S3EALORTHEJOINTSIGNATURESOFTWO$IRECTORSOUTOF FIVE$IRECTORSNAMELY-R,AE$ILOKVIDHYARAT-R#HULASINGH6ASANTASINGH-R7ITOON3IMACHOKEDEE-R2ATANAPONG*ONGDAMGERNGAND-R0RAMOTE)NSWARNGWITHTHE#OMPANY}S3EAL3. Composition of the Board of Directors 1UALIFICATIONSAND4ERMSOF-EMBERS #OMPOSITIONOFTHE"OARDOF$IRECTORS &OR THEBESTEFFICIENCYANDEFFECTIVENESS IN THE#OMPANY}SOPERATIONSANDCOMPLIANCEWITH THEAPPLICABLEREGULATIONSTHE"OARDOF$IRECTORSCLEARLYSPECIFIESTHECOMPOSITIONOFTHE"OARDOF$IRECTORS4HENUMBEROF$IRECTORSSHALLBENOLESSTHANSEVENBUTNOTEXCEEDTHIRTEEN.OMORETHANONETHIRDOFALL$IRECTORSSHALLBE%XECUTIVE$IRECTORS.OLESSTHANONETHIRDOFALL$IRECTORSSHALLBE)NDEPENDENT$IRECTORSWITHAMINIMUMNUMBEROFTHREE)NDEPENDENT$IRECTORS.OLESSTHANHALFOFALL$IRECTORSSHALLBETHERESIDENTOF4HAILAND#HAIRMANOFTHE"OARDSHALLBEA.ON%XECUTIVE$IRECTORANDNOTTHESAMEPERSONASTHE0RESIDENT4HE3HAREHOLDERS}MEETINGORTHE"OARDOF$IRECTORSSHALLAPPOINTTHE#HAIRMANANDTHE0RESIDENTFROM$IRECTORS 1UALIFICATIONSOF$IRECTOR !$IRECTORSHALLHAVETHESTATEDQUALIFICATIONSANDSHALLNOTHAVEPROHIBITEDQUALIFICATIONSBYLAW!$IRECTORSHALLNOTBEABANKRUPTPERSONANINCAPABLEORQUASIINCOMPETENTPERSONSHALLNOTHAVEBEENCONVICTEDINALEGALPROCEEDINGTOHAVEVIOLATEDLAWSRELATEDTOASSETSINAFRAUDULENTACTIONNEVERBETERMINATEDOREXPELLEDFROMAGOVERNMENTORPRIVATEORGANIZATIONSDUETOMALPRACTICEHAVENEVERBEENDEPRIVEDFROMBEINGADIRECTORMANAGEREMPLOYEEORANAUTHORIZEDEXECUTIVE INOTHERORGANIZATIONNOTBEAPOLITICIANAMEMBEROF THE0ARLIAMENTASENATORANDAMEMBEROFALOCALADMINISTRATIVEOFFICEORANEXECUTIVEOFALOCALADMINISTRATIONHAVEEDUCATIONALANDWORKEXPERIENCEOROTHERQUALIFICATIONSASSPECIFIEDBYTHE#OMPANYSHALLDEVOTESUFFICIENTTIMEANDFULLCAPABILITYFORTHEBESTBENEFITSOFTHE#OMPANYANDREGARDITASTHEDUTYTOREGULARLYATTENDTHE"OARD}SMEETINGS7HILEINOFFICEA$IRECTORCANHOLDDIRECTORSHIPINNOMORETHANFIVELISTEDCOMPANIES!$IRECTORSHALLNOTMANAGEORMAKEANYARRANGEMENTTHATWOULDCONFLICTWITHTHE#OMPANY}SINTERESTORWOULDPROVIDEADVANTAGESTOOTHERPERSONORENTITYANDFORPERSONALOROTHERPERSON}SBENEFIT !PPOINTMENTAND4ERMSOF$IRECTORS $IRECTORSAREAPPOINTEDBYTHE!NNUAL'ENERAL-EETINGOF3HAREHOLDERS!'-!TEVERY!'-ONETHIRDOFTHE$IRECTORSSHALLRETIREFROMOFFICE$IRECTORSWITHTHELONGESTSTAYINOFFICESHALLRETIRE!RETIRING$IRECTORBYAROTATIONOFOFFICEMAYBEREELECTED )NCASEANY$IRECTORRESIGNSBYREASONSOTHERTHANAROTATIONOFOFFICETHE"OARDOF$IRECTORSSHALLELECTANYPERSONTOREPLACETHERESIGNED$IRECTOR4HE$IRECTORSOAPPOINTEDSHALLRETAINHISHEROFFICEDURINGSUCHTIMEONLYASTHERESIGNED$IRECTORISENTITLEDTORETAIN $IRECTORSOFTHE#OMPANYSHALLREMAININTHEIROFFICESFORNOMORETHANTHREECONSECUTIVETERMSANDHISHERAGESHALLNOTEXCEEDYEARSOLD



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4. Board of Directors Authority and Duties !SASHAREHOLDER}S REPRESENTATIVE THE"OARDOF$IRECTORS ISOBLIGED TOMANAGEALL THE#OMPANY}SBUSINESSESANDISAUTHORIZEDTOMANAGEOVERSEEANDSUPERVISETHE-ANAGEMENT}SOPERATIONSTOENSURETHATTHEYSTRICTLYCOMPLYWITHTHEPOLICIESUNDERLEGALFRAMEWORKTHE!RTICLESOF!SSOCIATIONRESOLUTIONSOFTHE3HAREHOLDERS}-EETINGRELEVANTRULESANDREGULATIONSANDBUSINESSETHICSTHATMEETTHE#OMPANY}SOBJECTIVESINORDERTOACHIEVETHEEFFICIENCYANDEFFECTIVENESS4HE"OARDOF$IRECTORSHASROLEDUTIESANDRESPONSIBILITIES TOMANAGETHE#OMPANYWITHINTEGRITYANDAVOIDCONFLICTOFINTERESTTOPROTECTTHEORGANIZATION}SBENEFITSRATHERTHANANYPARTICULARGROUPSOFSHAREHOLDERSORSHAREHOLDER4HE"OARDOF$IRECTORS}DUTIESANDRESPONSIBILITIESAREASFOLLOWS 3ETTINGPOLICIESSTRATEGIESBUSINESSPLANANDBUDGET 4HE"OARDOF$IRECTORSSHALLCONSIDERANDDISCUSSSTRATEGIESPROPOSEDBYTHE-ANAGEMENTAND APPROVEIMPORTANTISSUESRELATEDTOTHE#OMPANY}SDIRECTIONANDPOLICIESCONSIDERANDAPPROVEANNUAL BUSINESSPLANCAPITALEXPENSEBUDGETANDPERFORMANCETARGETPROPOSEDBYTHE-ANAGEMENTAND INITIATENEWPROJECTSTHATENABLETHE#OMPANYTOACHIEVEITSGOALSAUTHORIZETHE0RESIDENTTOTAKE ACTIONMAKEAGREEMENTANDAPPROVEPAYMENTFORANYEXPENSESUNDERTHEAPPROVEDBUSINESSPLANAND CAPITALEXPENSEBUDGETINCOMPLIANCEWITHTHE#OMPANY}SRELEVANTRULESANDREGULATIONSORASDEEMED APPROPRIATE -ONITORINGANDFOLLOWINGUPTHE-ANAGEMENT}SPERFORMANCES 4HE"OARDOF$IRECTORSSHALLMONITORTHEPROGRESSOFANYSTRATEGICOPERATIONCOVERINGALLPLANSTHATMAY AFFECT THE#OMPANY}SSTRATEGICSUCCESSORCAUSEMAJORSTRATEGICCHANGEANDMONITORCORPORATE PERFORMANCEANDCOMPAREITWITHTHETARGETORPROJECTIONAT LEASTONQUARTERLYBASIS )NCASETHE OPERATIONALPERFORMANCEDOESNOTMEETTHETARGETDISCUSSIONSSHALLBEHELDTOFINDTHEBESTPOSSIBLE SOLUTION4HETARGETSHALLCOVERSHORTANDLONGTERMTARGETSPERFORMANCEEFFICIENCYINDICESAND COMPARISONWITHCOMPETITORS (UMANRESOURCESMANAGEMENT 4HE"OARDOF$IRECTORSSHALLWORKWITHTHE-ANAGEMENTINCONSIDERINGANDAPPROVINGTHEVISIONSAND STRATEGIESRELATEDTOHUMANRESOURCESANDEXECUTIVESDEVELOPMENTPLANTHEREMUNERATIONSTRATEGYAND PERFORMANCEBASEDREMUNERATIONPLAN INORDERTOATTRACTANDMAINTAINHIGHPOTENTIALEMPLOYEES INCLUDINGSPECIALREWARDSFORSENIOREXECUTIVES4HE"OARDOF$IRECTORSSHALLENSURECLEARTRANSPARENT APPROPRIATEANDUSEFULCRITERIAMETHODANDPROCESSOFRECRUITINGWITHDRAWINGORRETIRING$IRECTORSAND SENIOREXECUTIVESTOENSURETHATTHE#OMPANY}S-ANAGEMENTHASTHERIGHTQUALIFICATIONKNOWLEDGE PROFICIENCYANDEXPERIENCETOEFFICIENTLYANDSUCCESSFULLYOPERATETHE#OMPANYANDENSURETHAT EFFICIENTPERFORMANCEAPPRAISALOFSENIOREXECUTIVES IS INPLACEANDTHAT THEIRPERFORMANCESARE COMPAREDWITHTHEQUARTERLYANDANNUALTARGETS

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4HE"OARDOF$IRECTORSAPPOINTEDTHE l)NVESTMENT3UB#OMMITTEEmON*UNETOHELPSCREENINGINVESTMENTPROJECT-R0EERAWAT0OOMTHONG%XECUTIVE6ICE0RESIDENT"USINESS$EVELOPMENTACTSASTHE#OMMITTEE}SSECRETARY4HEFOURMEMBERSARE -R,AE $ILOKVIDHYARAT #HAIRMANOFTHE)NVESTMENT3UB#OMMITTEE -R7ITOON 3IMACHOKEDEE -EMBEROFTHE)NVESTMENT3UB#OMMITTEE -R+URUJIT .AKORNTHAP -EMBEROFTHE)NVESTMENT3UB#OMMITTEE -R!TCHADA +ESORNSOOK -EMBEROFTHE)NVESTMENT3UB#OMMITTEE 4HE )NVESTMENT3UB#OMMITTEE IS RESPONSIBLE FORSCREENING INVESTMENTPROJECTPROPOSEDBY THE-ANAGEMENTINORDERTOENSURETHATALLINVESTMENTPROJECTSARERELEVANTANDSUPPORTTHEPOLICYANDGOALSOFTHE#OMPANY}SBUSINESSPLANASWELLASBESTRESPONSETHE#OMPANY}SBUSINESSANDINVESTMENTENVIRONMENT4HE3UB#OMMITTEEHASTOCONSIDERSUCHINFORMATIONASPROJECTPOSSIBILITYSTUDYRELATEDBUSINESSFACTORSANDOTHEREXPECTEDBENEFITS)NTHE3UB#OMMITTEECONVENEDTIMESINCLUDINGMEETINGSHELDAFTERTHEAPPOINTMENTFROMTHE"OARDOF$IRECTORS 10. The Companys Executives 4HE"OARDOF$IRECTORSHASSPECIFIEDSCOPEOFRESPONSIBILITYANDAUTHORITYOF THE"OARDOF$IRECTORSSEPARATELYFROMTHE-ANAGEMENT4HE"OARDOF$IRECTORSISRESPONSIBLEFORFORMULATINGPOLICYANDMONITORINGTHEPERFORMANCESOFTHE#OMPANY}S-ANAGEMENTWHILETHE-ANAGEMENTISRESPONSIBLEFORIMPLEMENTINGANDEXECUTINGTHEPOLICIESANDREPORTINGTHEPERFORMANCERESULTSTOTHE"OARDOF$IRECTORS 4HE0RESIDENTISTHETOPEXECUTIVESINTHE-ANAGEMENT4EAMANDISAUTHORIZEDTOMANAGEDAILYOPERATIONSOFTHE#OMPANYASFOLLOWS -ANAGEHIREAPPOINTPUNISHANDELIMINATEEMPLOYEES4HE0RESIDENT ISAUTHORIZEDTOCONSIDER PROMOTIONORADJUSTSALARYOFEMPLOYEESEXCLUDINGTHOSEINTOPLEVELFROM%XECUTIVE6ICE0RESIDENT LEVELUP !NNOUNCEMANAGEMENTPROCESSOROTHEROPERATIONSOFTHE#OMPANYTHATDONOTCONFLICTWITHTHE #OMPANY}SREGULATIONSANDTHE"OARDOF$IRECTORS}RESOLUTION $ETERMINETHEWORKSCOPEANDCONDITIONSFOREMPLOYEES &OREXTERNALAFFAIRSTHE0RESIDENTISAUTHORIZEDTOACTASASIGNATORYEXCEPTINANYMATTERSTHATTHE 0RESIDENTORPERSONSWHOHAVERELATIONSHIPWITHHIMMAYHAVECONFLICTOFINTERESTS3UCHACTIONCANBE TAKENONLYWHENAPPROVEDBYTHE"OARDOF$IRECTORSWITHTHEPRESENCEOF)NDEPENDENT$IRECTORS )NSUCHCASETHE0RESIDENTMAYAUTHORIZEANYOTHERPERSONTOACTONHISBEHALFEXCEPTFORANYMATTER



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THATMAYHOLDTHE#OMPANY}SLIABLEASABORROWERBUYERORHIRERENGAGEDINMORETHAN"AHTMILLION PROJECT&ORANYCONTRACTTHATISWRONGFULLYMADEBYTHE0RESIDENTWHICHBREACHESTHERESOLUTIONOFTHE "OARDOF$IRECTORSTHE#OMPANYWILLNOTBEHELDLIABLEEXCEPTINCASEOFRECTIFICATIONBYTHE"OARDOF $IRECTORS 4HE"OARDOF$IRECTORSAUTHORIZEDTHE0RESIDENTTOAPPROVEPROJECTSBELOW"AHTMILLIONINTOTAL VALUE0ROJECTSWITHGREATERVALUESHALLBECONSIDEREDANDAPPROVEDBYTHE"OARDOF$IRECTORS 4HE0RESIDENTISAUTHORIZEDTOAPPROVEDONATIONOFNOMORETHAN"AHTEACH#HARITYDONATION OFUPTO"AHTSHALLBEAPPROVEDBYTHE"OARDOF$IRECTORS}#HAIRMANWHILEDONATIONEXCEEDING "AHTSHALLBEAPPROVEDBYTHE"OARDOF$IRECTORS )NCASETHATTHE0RESIDENTISNOTAVAILABLEORCANNOTPERFORMHISDUTYORWHENTHEPOSITIONISVACANTTHE"OARDOF$IRECTORSASSIGNED-R4HAWAT6IMOLSARAWONG3ENIOR%XECUTIVE6ICE0RESIDENT"USINESS$EVELOPMENT-RS$ARANEE!BHINORASETH3ENIOR%XECUTIVE6ICE0RESIDENT&INANCEAND-R0RACHUAB5JJIN3ENIOR%XECUTIVE6ICE0RESIDENT0LANNINGAND0ORTFOLIO-ANAGEMENTTOACTASTHE!CTING0RESIDENTRESPECTIVELYWITHFULLAUTHORITYEXCEPTFORTHE0RESIDENT}RESPONSIBILITYASAMEMBEROFTHE"OARDOF$IRECTORS 4HE#OMPANY}SMANAGEMENT ISDIVIDEDINTOFOURFUNCTION LINES"USINESS$EVELOPMENT0LANNINGAND0ORTFOLIO-ANAGEMENT&INANCEAND#ORPORATE!DMINISTRATION%ACHGROUP IS LEDBY3ENIOR%XECUTIVE6ICE0RESIDENT4WOUNITSUNDERTHE0RESIDENTARETHE#ORPORATE3ECRETARY/FFICEANDTHE)NTERNAL!UDIT$IVISION4HE)NTERNAL!UDIT$IVISIONREPORTSDIRECTLYTOTHE!UDIT#OMMITTEE !SOF$ECEMBERTHE#OMPANY}Sl%XECUTIVEmACCORDINGTOTHE3ECURITIESAND%XCHANGE!CTINCLUDETHOSEHOLDING%XECUTIVE6ICE0RESIDENTPOSITIONANDUP6ICE0RESIDENTOF!CCOUNTING$IVISIONAND6ICE0RESIDENTOF&INANCE$IVISIONASFOLLOWS -R .OPPOL -ILINTHANGGOON 0RESIDENT -R 4HAWAT 6IMOLSARAWONG 3ENIOR%XECUTIVE6ICE0RESIDENT"USINESS$EVELOPMENT -RS$ARUNEE !BHINORASETH 3ENIOR%XECUTIVE6ICE0RESIDENT&INANCE -R0RACHUAB 5JJIN 3ENIOR%XECUTIVE6ICE0RESIDENT0LANNINGAND0ORTFOLIO-ANAGEMENT -R0EERAWAT 0UMTHONG %XECUTIVE6ICE0RESIDENT"USINESS$EVELOPMENT -R3UCHART !VUSOSAKUL %XECUTIVE6ICE0RESIDENT&INANCE -R.IRUN 7ONGCHANGLOR %XECUTIVE6ICEPRESIDENT0LANNINGAND0ORTFOLIO-ANAGEMENT -R0RAYUT 4HONGSUWAN %XECUTIVE6ICE0RESIDENT#ORPORATE!DMINISTRATION -R6ATCHARA .OOMAHAN %XECUTIVE6ICE0RESIDENT -R3OMNUK *INDASUP %XECUTIVE6ICE0RESIDENT -R3OMMAI 0OOSANACHAKORN 6ICE0RESIDENTOF!CCOUNTING$IVISION -R3AKCHAI 3RIPETCH 6ICE0RESIDENTOF&INANCE$IVISION 0ROFILESANDINFORMATIONOFTHE%XECUTIVESAREDISCLOSEDINTHE!PPENDIX 4HE#OMPANY}SORGANIZATIONALSTRUCTUREISASFOLLOWS



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11. Secretary to the Board of Directors and Company Secretary 3ECRETARYTOTHE"OARDOF$IRECTORS 4HE"OARDOF$IRECTORSAPPOINTEDTHE0RESIDENTASTHE3ECRETARYTOTHE"OARDOF$IRECTORS4HEl#ORPORATE3ECRETARY/FFICEmWHICHREPORTSDIRECTLYTOTHE0RESIDENTISRESPONSIBLEFORARRANGINGMEETINGSADMINISTRATIONANDCOORDINATIONFORTHE"OARDOF$IRECTORS #OMPANY3ECRETARY 4HE"OARDOF$IRECTORSHASAPPOINTED-RS"OONTIVA$ANSAMASATIT6ICE0RESIDENTOF THE#ORPORATE3ECRETARY/FFICEASTHE#OMPANY3ECRETARY(ERTASKSCOVERTHE#OMPANY3ECRETARY}SRESPONSIBILITIESASSPECIFIEDBY THE3ECURITIES AND%XCHANGE!CT IN PREPARING AND KEEPING THE#OMPANY}S IMPORTANT DOCUMENTSSUCHAS$IRECTORS}2ECORDSMEETINGINVITATIONANDMEETINGANDMINUTESOFTHE"OARDOF$IRECTORSANNUALREPORTSHAREHOLDERS}MEETINGINVITATIONANDMINUTESAND$IRECTORSAND%XECUTIVES}CONFLICTOFINTERESTSREPORT3HEISALSORESPONSIBLEFORARRANGINGTHE"OARDOF$IRECTORS}MEETINGSANDSHAREHOLDERS}MEETINGPROVIDINGINITIALADVICETOFACILITATETHE"OARDOF$IRECTOR}SMEETINGSANDACTIVITIESINORDERTOCOMPLYWITHRELATEDRULESANDREGULATIONSHANDLINGSECRETARIATWORKSFORTHE"OARDOF$IRECTORSANDFACILITATINGTHE"OARDOF$IRECTORS}ACTIVITIESENSURINGTHATTHE"OARDOF$IRECTORS}ANDSHAREHOLDERS}MEETINGRESOLUTIONSAREPROPERLYEXECUTEDANDHANDLINGACTIVITIESRELATETOSHAREHOLDERS}RIGHTSANDPROPERDISCLOSUREOFINFORMATIONASENFORCEDBYTHEREGULATINGAUTHORITIES 0ROFILEANDINFORMATIONABOUTTHE#OMPANY3ECRETARYAREPUBLISHEDINTHE!PPENDIX 12. Recruitment and Nomination Procedures of Directors and Top Executives "OARDOF$IRECTORS}3ELECTION 4HE#OMPANYCONSIDERS$IRECTORRECRUITMENTAVERYIMPORTANTTASKBECAUSE$IRECTORSWHOSITINTHE"OARDOF$IRECTORSWILLPARTICIPATEINPOLICYFORMULATIONANDREGULATINGTHEMANAGEMENTANDOPERATIONSFORTHEBESTBENEFITSOFTHE#OMPANY1UALIFICATIONSOF$IRECTORSAND)NDEPENDENT$IRECTORSARESPECIFIEDINACCORDANCEWITHTHEREGULATIONSSETBYRELATEDAUTHORITIESLEGALREQUIREMENTSANDTHE#OMPANY}S2ULESAND2EGULATIONSWHICHHAVEALREADYBEENDISCLOSED4HE#OMPANYALSOCONSIDERSEDUCATIONALBACKGROUND TRAININGWORKEXPERIENCESPECIALIZEDAREASANDSKILLSTHATBESTSUITTHETASKSDIVERSITYTHATWILLENHANCETHE"OARDOF$IRECTORS}CAPABILITYANDEFFICIENCYINSUPERVISINGANDREGULATINGTHE#OMPANY}SOPERATIONSANDWILLINGNESSTOCONTRIBUTETIMEANDEFFORTSTOTHEIRDESIGNATEDMISSIONSTHATWILLSTRENGTHENTHE"OARDOF$IRECTORS 4HE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEE ISRESPONSIBLEFORSELECTINGRECRUITINGANDSCREENINGNOMINEESFORTHE"OARDOF$IRECTORS}CONSIDERATION$IRECTORS}APPOINTMENTINCLUDES #ASE !$IRECTORPOSITION ISVACANTDUETOREASONSOTHERTHANROTATIONOFOFFICE4HE"OARDOF$IRECTORSHASTHEAUTHORITYTOELECTANYPERSONTOREPLACETHERESIGNED$IRECTOR4HE$IRECTORSOAPPOINTEDSHALLRETAINHISHEROFFICEDURINGSUCHTIMEONLYASTHERESIGNED$IRECTORISENTITLEDTORETAIN!TLEASTTHREEFOURTHSOFTHEREMAINING$IRECTORSSHALLAPPROVETHEAPPOINTMENT #ASE!$IRECTORPOSITIONISVACANTDUETOROTATIONOFOFFICE4HE"OARDOF$IRECTORSSHALLPROPOSETOTHESHAREHOLDERS}MEETINGFORCONSIDERATIONATTHEANNUALGENERALMEETINGOFSHAREHOLDERS#RITERIAANDPROCESSASSPECIFIEDINTHE#OMPANY}SRULESAREASFOLLOWS %ACHSHAREHOLDER}SVOTEISEQUALTOTHENUMBEROFSHARESHELD/NESHAREEQUALSONEVOTE !SHAREHOLDERMAYVOTEFORONEORMORENOMINEESBUTMUSTNOTEXCEEDTHENUMBEROF$IRECTORSTOBE APPOINTED )NCASEASHAREHOLDERCHOOSESMORETHANONENOMINEEHESHEHASTHERIGHTTOVOTEFOREACHNOMINEE

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ATTHENUMBEROFVOTESEQUIVALENTTOTHENUMBEROFSHARESHELD4HESHAREHOLDERCANNOTVOTEMOREFOR ANYPARTICULARNOMINEE 4HENOMINEESWHORECEIVETHESECONDHIGHESTVOTESWILLBESELECTEDASTHE$IRECTORSACCORDINGTOTHE NUMBEROFNEWDIRECTORSTOBESELECTED)FTHENUMBEROFNOMINEESRECEIVINGTHESAMENUMBEROFVOTES ISHIGHERTHANTHENUMBEROFNEWDIRECTORSTOBESELECTEDTHECHAIRMANOFTHEMEETINGWILLMAKEFINAL DECISION #OMMITTEDTOENCOURAGINGEQUALTREATMENTOFSHAREHOLDERSTHE"OARDOF$IRECTORSENCOURAGESMINORSHAREHOLDERSTONOMINATEAPERSONWITHPROPERQUALIFICATIONS4HE"OARDOF$IRECTORSWILLCONSIDERANDNOMINATETHEPERSONFORTHESHAREHOLDERS}CONSIDERATIONATTHEANNUALGENERALMEETINGOFSHAREHOLDERS4HEANNOUNCEMENTFORNOMINATIONHASBEENMADEPRIORTOTHEANNUALGENERALMEETINGOFSHAREHOLDERSSINCE$ETAILSARESPECIFIEDINTHE#ORPORATE'OVERNANCE2EPORT3ECTION 2ECRUITMENTOFTHE4OP%XECUTIVES l4OP%XECUTIVEmMEANSAPERSONWHOHOLDSTHEPOSITIONOF0RESIDENT3ENIOR%XECUTIVE6ICE0RESIDENTAND%XECUTIVE6ICE0RESIDENT 4HE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEESHALLRECRUITTHE$IRECTORSANDTOPEXECUTIVESOF THE#OMPANY}S'ROUPBYREVIEWING THENOMINEE}SEDUCATIONALBACKGROUNDKNOWLEDGESKILLSANDWORKEXPERIENCESWHICHSHOULDBENEFITTHEIRDESIGNATEDMISSIONSANDTHE#OMPANY}SOVERALLOPERATIONS $IRECTORSREPRESENTINGMAJORSHAREHOLDERSSUCHAS%'!4AND"ANPU0UBLIC#OMPANY,IMITEDTHATHAVERIGHTTONOMINATETOTHE#OMPANY}S"OARDOF$IRECTORSHAVEBEENAPPOINTEDAFTERASELECTIONPROCEDURE"ACKGROUNDANDQUALIFICATIONSTHATAREPROPERANDNECESSARYINGOVERNINGTHE#OMPANY}SBUSINESSESARETAKENINTOCONSIDERATION4HE0RESIDENTWHOIS%'!4}STOPEXECUTIVEANDSECONDEDTOWORKATTHE#OMPANYHASALSOBEENNOMINATEDTOTHE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEEFORCONSIDERATIONANDSCREENINGPRIORTOTHE"OARDOF$IRECTORS}CONSIDERATIONANDORTHESHAREHOLDERS}MEETING}SCONSIDERATIONACCORDINGTOTHEPROPERSELECTINGPROCEDURE 13. Policy on Appointing Directors and Executives to be Directors and the Management of other Subsidiaries and Affiliates 4HE#OMPANYHASESTABLISHEDSUBSIDIARIESTOMANAGEANDOPERATEDESIGNATEDMISSIONSASWELLASINVESTEDINMANYCOMPANIES INFORMATIONABOUTTHESUBSIDIARIESANDAFFILIATESAREDETAILED INTHE'ENERAL )NFORMATIONSECTION4OENSURETHATTHEMANAGEMENTANDSUPERVISIONOFALLCOMPANIESAREINLINEWITHTHE#OMPANY}SPOLICYANDTOEFFECTIVELYMONITORANDASSESSOPERATIONALPERFORMANCESOFTHESUBSIDIARIESANDAFFILIATESTHE#OMPANYHASAPOLICYTOAPPOINTITS$IRECTORSANDEXECUTIVESTOBEDIRECTORSANDOREXECUTIVESINTHOSECOMPANIES 14. Remuneration for the Directors and Executives 0OLICYAND#RITERIA 4HE"OARDOF$IRECTORSHASMADETHEPOLICYANDCRITERIAONREMUNERATIONOF$IRECTORSANDTOPEXECUTIVESINWRITINGSINCE4HISENABLESTHE#OMPANYTOENSURETHATREMUNERATIONISBASEDONCLEARAPPROPRIATETRANSPARENTANDUPDATEDCRITERIAANDPROCEDUREASWELLASTHEBESTBENEFITSOF THE#OMPANY}SOPERATIONSANDABILITYTOATTRACTANDRETAINQUALITYHUMANRESOURCES2EMUNERATIONIS ,INKEDTOTHEGOALSANDPERFORMANCESOFTHE#OMPANY}S'ROUP $EPENDENTONLEVELOFDESIGNATEDRESPONSIBILITIES )NTHESAMELEVELASTHESTANDARDREMUNERATIONOFFEREDBYORGANIZATIONSINSIMILARINDUSTRYANDSIZE



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!BLETOATTRACTANDINSPIREPERSONSWITHAPPROPRIATEEDUCATIONALBACKGROUNDKNOWLEDGECAPABILITY SKILLSANDEXPERIENCETHATENHANCETHESUCCESSOFTHE#OMPANY}S'ROUP 4HE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEESCREENSANDPROPOSESTHEREMUNERATIONOFTHE#OMPANY}S$IRECTORSANDCOMMITTEESBEFORESEEKINGAPPROVALFROMTHE"OARDOF$IRECTORSANDLATERFROMTHEANNUALGENERALMEETINGOFSHAREHOLDERS!TPRESENT$IRECTORSRECEIVETWOTYPESOFREMUNERATIONSASFOLLOWS "ONUSDEPENDINGONTHELENGTHOFDIRECTORSHIPANDATTENDANCETOTHE"OARDOF$IRECTORS}MEETINGS 7HENA$IRECTORHOLDSMORETHANONEDIRECTORSHIPPOSITIONINTHE#OMPANYANDITSSUBSIDIARIESTHE $IRECTORSHALLRECEIVEBONUSFROMTHECOMPANYTHATALLOCATESTHEHIGHESTBONUSATTHATPOINTOFTIME ONLY 4HERETAINERFORTHE#OMPANY}S"OARDOF$IRECTORSPAIDONMONTHLYBASISANDDIVIDEDINTOTWOPORTIONS 4HEFIRSTPERCENTPORTIONISFIXEDPAIDANDTHERESTPERCENTISPAIDONATTENDANCETOTHE"OARD}S MEETING!SFORTHE#OMMITTEESTHEPAYMENTISMADEONATTENDANCEBASISTOTHE#OMMITTEE}SMEETING !TPRESENTTHERETAINERASAPPROVEDBYTHESHAREHOLDERS}MEETINGISASPAIDATTHEFOLLOWINGRATES 4HERETAINERFORTHE"OARDOF$IRECTORS #HAIRMAN "AHT $IRECTOR "AHT 4HERETAINERFORCOMMITTEEMEMBERS 4HE!UDIT#OMMITTEE THE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEEAND THE2ISK -ANAGEMENT#OMMITTEE #HAIRMAN "AHT $IRECTOR "AHT %XECUTIVEDIRECTORDOESNOTRECEIVETHERETAINERBUTHEISENTITLEDTORECEIVETHEBONUSASA$IRECTOR 2EMUNERATIONFORTHETOPEXECUTIVESAREDETERMINEDACCORDINGTOTHECRITERIAANDPOLICYSETBYTHE"OARDOF$IRECTORS0RIORTOTHEAPPROVAL FROMTHE"OARDOF$IRECTORS ITWASREVIEWEDBYTHE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEEBASEDONTHEYEARLYPERFORMANCEAGREEMENT

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2EMUNERATIONOF$IRECTORSAND4OP%XECUTIVES 2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITED 2EMUNERATIONFORTHE"OARDOF$IRECTORSAND#OMMITTEE-EMBERS

.O .AMES"OARD2ETAINERFOR

4OTAL

5NIT"AHT

#OMPANY}S$IRECTORS

4HE!UDIT#OMMITTEE

4HE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEE

4HE2ISK-ANAGEMENT#OMMITTEE

2EMARKS $IRECTORS}BONUSPAIDIN!PRILACCORDINGTOTHEANNUALGENERALSHAREHOLDERS}MEETINGDATED -ARCH #HAIRMANOFTHE"OARDOF$IRECTORS #HAIRMANOFTHE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEE #HAIRMANOFTHE!UDIT#OMMITTEE #HAIRMANOFTHE2ISK-ANAGEMENT#OMMITTEE !UDIT#OMMITTEEMENMEMBER 2ISK-ANAGEMENT#OMMITTEEMEMBER (UMAN2ESOURCESAND2EMUNERATION#OMMITTEEMEMBER )NDEPENDENT$IRECTOR %XECUTIVE$IRECTOR )NCHANGESINCOMMITTEESAREASFOLLOWS -R7ITOON3IMACHOKEDEEWASAPPOINTEDAMEMBEROF THE2ISK-ANAGEMENT#OMMITTEESINCE *ANUARY -R+URUJIT.AKORNTHAPWASAPPOINTEDAMEMBEROFTHE!UDIT#OMMITTEESINCE*ANUARY -R!TCHADA+ESORNSOOKRESIGNEDFROMTHE!UDIT#OMMITTEEOFFICESINCE*ANUARYANDWAS APPOINTEDAMEMBEROFTHE(UMAN2ESOURCESAND2EMUNERATION#OMMITTEESINCE*ANUARY

-R3OMBAT3ARNTIJAREE -R,AE$ILOKVIDHYARAT -R#HULASINGH6ASANTASINGH -R3ATHIT,IMPONGPAN -R.ATHI0REMRASMI -R-ETTA"ANTURNGSUK -R7ITOON3IMACHOKEDEE -R+URUJIT.AKORNTHAP -R!TCHADA+ESORNSOOK -R2ATANAPONG*ONGDAMGERNG -R0RAMOTE)NSWARNG -R#HANIN6ONGKUSOLKIT -R.OPPOL-ILINTHANGGOON 4OTAL

"ONUS

51Annual Report 2009


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2EMUNERATIONFORTHE#OMPANY}S%XECUTIVES

2ATCHABURI'AS#OMPANY,IMITED2ATCH5DOM0OWER#OMPANY,IMITED2ATCHABURI !LLIANCES#OMPANY,IMITED2ATCHABURI%NERGY#OMPANY,IMITED2!4#(,AO3ERVICES #OMPANY,IMITEDAND2()NTERNATIONAL#ORPORATION,IMITED $IRECTORSANDEXECUTIVESINTHESESUBSIDIARIESWEREAPPOINTEDBYTHE2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDANDDONOTRECEIVEREMUNERATIONFROMTHE#OMPANY

2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITED

2EMUNERATION .UMBERPERSONS 4OTAL5NIT"AHT

2EMARKS 4HE#OMPANY}SHASEXECUTIVESANDTWOAREASSIGNEDONSECONDMENTMISSIONIN2ATCHABURI%LECTRICITY'ENERATING #OMPANY,IMITED

2EMUNERATION .UMBERPERSONS 4OTAL

5NIT"AHT

2EMARKS 2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITEDHASDIRECTORS4WOEXECUTIVEDIRECTORSDONOTRECEIVE"OARD RETAINERONEISTHE0RESIDENTOF2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDANDTHEOTHER ISTHE-ANAGING$IRECTOROF2ATCHABURI%LECTRICITY'ENERATING#OMPANY,IMITED )NFOURDIRECTORSRETIREDBYROTATIONOFOFFICEFOURWEREAPPOINTEDINREPLACEMENTANDFIVEWEREINOFFICE THROUGHOUTTHEYEARANDONEOFTHESEFIVEDIRECTORSALSOHELDDIRECTORSHIPIN2ATCHABURI%LECTRICITY'ENERATING(OLDING 0UBLIC#OMPANY,IMITEDANDTHEREFOREDIDNOTRECEIVEBONUSFROM2ATCHABURI%LECTRICITY'ENERATING#OMPANY ,IMITEDACCORDINGTOTHEPRESETCRITERIA )N THE#OMPANY RESTRUCTURED ITSORGANIZATION INTEGRATING THE'ENERAL!DMINISTRATION$IVISIONWITH THE!CCOUNTINGAND&INANCE$IVISIONANDTHUSFORMEDANEWDIVISIONNAMELYTHE!DMINISTRATIONAND&INANCE$IVISION

$IRECTORS 2ETAINER "ONUS 4OTAL %XECUTIVES 3ALARY "ONUS #ONTRIBUTIONTO0ROVIDENT&UND 4OTAL

3ALARY "ONUS #ONTRIBUTIONTO0ROVIDENT&UND 4OTAL

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15. Human Resources Management 2EALIZING THATEMPLOYEESAREVALUABLERESOURCESAND IMPORTANT TOSUPPORT THE#OMPANY}SSUCCESSTHE#OMPANYHASCONTINUOUSLYIMPROVEDANDDEVELOPEDITSHUMANRESOURCESMANAGEMENTSYSTEMTOENHANCEEMPLOYEES}CAPABILITYANDENABLETHEMTODELIVERTHEMOSTEFFECTIVEPERFORMANCEASEXPECTED4HISWILLREINFORCETHE#OMPANY}SCOMPETITIVENESSANDSTRENGTH)NTHE#OMPANYPREPAREDTHE#AREER$EVELOPMENT0LANFOCUSINGON3UCCESSION0LANFORTOPANDMEDIUMLEVELEXECUTIVESINORDERTOEQUIPTHEEMPLOYEESWITHTHERIGHTSKILLSANDCAPABILITYTOTAKEMORERESPONSIBILITYALONGTHEIRCAREERDEVELOPMENTPATH4HE#OMPANYHASREVIEWEDSUFFICIENCYOFSTAFFMEMBERSINALLDIVISIONSINORDERTOENSURESUFFICIENTEMPLOYEESTOHANDLETHECURRENTWORKLOADANDPREPAREFORFUTUREBUSINESSEXPANSION

)NTERMSOFEMPLOYEES}BENEFITSTHE#OMPANYHASSETUPAPROVIDENTFUNDFOR FUTURESECURITY"OTHEMPLOYEESANDTHE#OMPANYCONTRIBUTEINTOTHEPROVIDENTFUNDATPROGRESSIVERATE4HE#OMPANYALSOREGULARLYREVIEWSALLBENEFITSANDPERKSWHICHISHANDLEDBYTHEl%MPLOYEE"ENEFITS#OMMITTEEm4HEl(EALTH3AFETYAND7ORK%NVIRONMENT#OMMITTEEmWASSETUPANDFORMEDBYREPRESENTATIVESFROMACROSSFUNCTIONSWHOMEETPLAN

ANDEXECUTEACTIVITIESRELATEDTOOCCUPATIONALHEALTHSAFETYANDWORKENVIRONMENTPROMOTION 4HECOMPETENCYBASEDHUMANRESOURCEDEVELOPMENTPROGRAMSAREPROVIDEDTOSTRENGTHENEMPLOYEES}CAPABILITYANDSKILLS3HORTANDLONGTERMKNOWLEDGECAPABILITYANDSKILLDEVELOPMENTPROGRAMSWEREOFFEREDBASEDONPRIORITYANDURGENCYOFEACHUNIT4HETRAININGSAREAPPROPRIATELYPREPAREDTOSUITEACHPOSITION4HEEXTERNALTRAININGSFOREMPLOYEESARETAKENPLACEBOTHLOCALLYANDINTERNATIONALLYESPECIALLYFORHIGHLEVELEXECUTIVESTOWHOMTHEINTENSIVEPROGRAMSAREPROVIDEDONSTRATEGICMANAGEMENTANDVISIONARYLEADERSHIP4HEYATTENDEDPUBLICCOURSESUCHASTHE#APITAL-ARKET!CADEMY,EADER0ROGRAMANDTHE+ING0RAJADHIPOK}S )NSTITUTE-ANAGEMENTAND0UBLIC%CONOMY FOR%XECUTIVE0ROGRAM4HEMIDLEVELEXECUTIVESPRIMARYLEVELEXECUTIVESANDEMPLOYEESARECONTINUOUSLYDEVELOPEDASAPREPARATIONTOSUPPORTTHE#OMPANY}S FUTUREEXPANSION4HE#OMPANYHASALSOSENT ITSEMPLOYEESTOATTENDOTHERPUBLICPROGRAMSORGANIZEDBYACADEMICINSTITUTIONSSUCHAS3ENIOR%XECUTIVE0ROGRAMBY3!3).'RADUATE)NSTITUTEOF"USINESS!DMINISTRATION#HULALONGKORN5NIVERSITY#HIEF&INANCIAL#ERTIFICATION0ROGRAMBY THE&EDERATIONOF!CCOUNTING0ROFESSIONSAND#ERTIFICATEIN)NTERNATIONAL4AX,AWBY*UDICAL4RAINING)NSTITUTE4HE#OMPANYALSOCOOPERATESWITHMANYFAMOUSINSTITUTIONS



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TOARRANGEFORTHEEMPLOYEESTRAININGSSUCHASNEGOTIATIONANDMANAGERIALSKILLCOURSESINTERRELATIONSANDTEAMBUILDINGCOURSE%NGLISHANDOTHERFOREIGNLANGUAGESCOURSE)NADDITIONTOTHESETRAININGPROGRAMSTHE#OMPANYHASENCOURAGEDTHEEMPLOYEES}AWARENESSOFSOCIALANDENVIRONMENTRESPONSIBILITYTHROUGHVOLUNTEERACTIVITIES)NPERCENTOFTOTALEMPLOYEESWERETRAINEDANDTHEHUMANRESOURCEDEVELOPMENTBUDGETISALLOCATEDATTHEAMOUNTOFPERCENTOFTOTALEXPENDITURES 4HE#OMPANYISSTRONGLYCONFIDENTTHATGREATCARE INTERMSOFSERVICESBENEFITSPLEASANTWORKPLACEENVIRONMENTANDONGOINGEMPLOYEES}DEVELOPMENTPROGRAMSANDACTIVITIESWILLSTRENGTHENEMPLOYEES}SECURITYANDMORALE!TTHEENDEMPLOYEESWILLFEELHIGHLYMOTIVATEDANDAREWILLINGTOCREATEORINVENTINNOVATIONSTHATWILLENABLETHE#OMPANYTOACHIEVEITSBUSINESSGOAL !SOF$ECEMBER THE#OMPANYAND ITSSUBSIDIARYHAVEA TOTALOFEMPLOYEESWITH"AHTOFINDIVIDUALEXPENSESREPRESENTINGPERCENTOFTHETOTALMANAGEMENTCOSTS

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2ATCHABURI%LECTRICITY'ENERATING(OLDING0UBLIC#OMPANY,IMITEDHASAPOLICYTOPAYDIVIDENDATNOLESSTHANPERCENTOFITSTOTALNETPROFITACCORDINGTOTHECONSOLIDATEDFINANCIALSTATEMENTSAFTERRESERVEREQUIREDBYLAWANDOTHERRESERVES(OWEVERDIVIDENDPAYMENTALSODEPENDSONTHE#OMPANY}SCASHFLOW $IVIDENDPAIDTOSHAREHOLDERSSINCETHEINAUGURATIONOFITSOPERATIONSISASFOLLOWS

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4HE#OMPANYHASTODEDUCTNOLESSTHANFIVEPERCENTOFITSANNUALNETPROFITFORRESERVEREQUIREDBYLAWUNTILTHE RESERVE ISNO LESSTHANPERCENTOF THEREGISTEREDCAPITALOR"AHTMILLION4HE#OMPANYHASACHIEVED THISSINCE !NAGENDA ISPROPOSEDFOR THEAPPROVAL FROMTHE!NNUAL'ENERAL-EETINGOF3HAREHOLDERSTOBEHELDON -ARCH/N3EPTEMBERTHE#OMPANYPAIDINTERIMDIVIDENDFROMTHEFIRSTHALFOPERATIONSOF *ANUARY*UNEAT"AHTPERSHARE

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4HE #OMPANY}S SOCIA L ANDENVIRONMENTALRESPONSIBILITYPOLICYISBASEDONOURCOMMITMENT TOESTABLISHPOSITIVEPUBLICPERCEPTIONANDACCEPTANCETOWARDSTHE#OMPANYASACARINGMEMBEROFTHECOMMUNITY4HROUGHOUT THESEYEARS THE#OMPANYHASCONTINUALLYORGANIZEDSOCIALACTIVITIESBYENCOURAGINGPARTICIPATIONFROMALLPARTIESINCLUDINGTHEGOVERNMENTSECTORNONPROFITORGANIZATIONSEMPLOYEESANDCOMMUNITIES INORDER TOENSUREMUTUALDIRECTANDINDIRECTBENEFITSTOALL ISANOTHERYEAROFPRIDE7ERANKED4HAILAND}SRDANDSTAMONGCOMPANIESIN!SIA0ACIFICINTHE!SIAN3USTAINABILITY2ATINGBY#32!SIAANINTERNATIONALBODYPROMOTINGCORPORATESOCIALRESPONSIBILITYACTIVITIESBYCOMPANIESOPERATINGIN!SIA0ACIFICREGION4HE#OMPANYWASRANKEDTHAMONG4HAICOMPANIESIN4HERANKINGWASBASEDONDISCLOSUREOFINFORMATIONINTHEAREASOFGOVERNANCEPOLICYANDPRACTICE#32STRATEGIESANDCOMMUNICATIONSMARKETPLACEANDSUPPLYCHAINWORKPLACEANDPEOPLEENVIRONMENTANDCOMMUNITYDEVELOPMENT)NTHEPASTYEARTHE#OMPANY}SSIGNIFICANTSOCIALRESPONSIBILITYACTIVITIESAREASFOLLOWS l,OVETHE&ORESTSANDTHE#OMMUNITYm0ROJECT+HON2AK0A0A2AK#HUMCHONWHICHCOMPRISES THREEMAJORACTIVITIESASFOLLOWS p#OMMUNITYFORESTCOMPETITIONFOR(2(0RINCESS-AHA#HAKRI3IRINDHORN}STROPHY pl+LA9IM9OUTH#AMPm p#OMMUNITY&OREST.ETWORK3EMINAR %MPLOYEE6OLUNTEERS %DUCATIONAND9OUTH%MPOWERMENTPROGRAM #OMMUNITY2ELATIONS!CTIVITIESOF2ATCHABURI0OWER0LANT Love the Forests and the Community Project 4HISFIVEYEARPROJECTWASFIRSTLAUNCHEDININCOOPERATIONWITHTHE2OYAL&OREST$EPARTMENTUNDERTHE.ATURAL2ESOURCESAND%NVIRONMENT-INISTRY4HEl,OVETHE&ORESTSANDTHE#OMMUNITYmPROJECTCONTINUEDFORTHESECONDCONSECUTIVEYEARIN4HISMODELCOMMUNITYFORESTPROJECTATTEMPTEDTOBRING4HEIR-AJESTIES}GUIDELINESABOUTSUFFICIENCYECONOMYANDNATURALRESOURCESPRESERVATION INTOREALITY4HEPROJECT ISAIMEDATCREATINGAWARENESSAMONGCOMMUNITIESANDGENERALPUBLICINNATURALRESOURCESPRESERVATIONANDENCOURAGINGPEOPLETOLIVEINHARMONYWITHTHENATURE5NDERTHISPROJECTCOMMUNITIESACTASTHEKEYDRIVERTOMATERIALIZEFORESTSPRESERVATIONCONCEPTINACCORDANCETOTHE lSUSTAINABLEFORESTSPROFITABLECOMMUNITIESm#OMMUNITIESARETAUGHTANDGUIDEDTOUNDERSTANDANDEMBRACETOTHEIROWNRESPONSIBILITYTOPROMOTEECOLOGYSYSTEMOFCOMMUNITYFORESTSINTHEIRAREASWHILETHEPEOPLEINTHECOMMUNITYCANSTILLLIVESELFSUFFICIENTLYONANDREAPTHEBENEFITSFROMTHEFORESTS 4HISPROJECTEMPHASIZESONGROWING FORESTS INPEOPLE}SHEARTANDMINDASWELLASSTRENGTHENINGCOMMUNITIES INORDERTHATBOTHCANLIVE INHARMONY )NTHEENDTHEFORESTAREASWILLBEWELLPRESERVEDANDBIODIVERSITYINTHEFORESTSWILLEXPANDIFTHEECOLOGYSYSTEMISWELLMAINTAINED

Social and Environmental Responsibility



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Community Forest Competition (for HRH Princess Maha Chakri Sirindhorns trophy) 4OPROMOTEANDNURTURECOMMUNITYSTRENGTHINPROTECTINGCOMMUNITYFORESTSTHEPROJECTENCOURAGESCOMMUNITIESTOHAVEINPLACEGOODPLANNINGSYSTEMANDPROCESSINFORESTPRESERVATIONWITHEXTENSIVECOMMUNITYMEMBERS}PARTICIPATION#OMMUNITIESWITHWELL MANAGEDPLANANDACTIVITIESBECOMETHEROLEMODELSANDKNOWLEDGECENTERSFORCOMMUNITYFORESTRYMANAGEMENTFOROTHERS (2(0RINCESS-AHA#HAKRI3IRINDHORNHASGRANTEDATROPHYFORTHEWINNEROFTHECOMMUNITYFORESTSCOMPETITIONSINCE )NTHECOMPETITIONCOMPRISESFIVECATEGORIES4HEYARETHE.ATIONAL!WARD&OOD"ANK&ORESTS!WARDS2EGIONAL!WARDS0ROVINCIAL!WARDSAND-ERIT!WARDSTOTALINGAWARDS4HEWINNINGFORESTSHAVEOUTSTANDINGMANAGEMENTSYSTEMCOVERINGSOCIALASPECTWHICHFOCUSESONCOMMUNITYPARTICIPATION INFORESTPRESERVATIONANDPROPERUSEOFFORESTSTHEECONOMICASPECTWHICHFOCUSESONGENERATINGINCOMEANDJOBSFROMTHEFORESTSANDTHESUSTAINABILITYASPECTTHATFOCUSESONBIODIVERSITYANDPRODUCTIVITYINCREASEPLAN 4HECOMPETITIONATTRACTEDMORETHANCOMMUNITYFORESTPROJECTSACCOUNTINGABOUTEIGHTPERCENTOFTHETOTALCOMMUNITYFORESTSREGISTEREDWITHTHE2OYAL&OREST$EPARTMENTATTHATTIME4HEWINNERSRECEIVEDTHETROPHYCERTIFICATESANDFINANCIALSUPPORTFORFORESTPRESERVATIONACTIVITIESTOTALING"AHTMILLION4HE#OMPANYINCOOPERATIONWITHTHE2OYAL&OREST$EPARTMENTANNOUNCEDTHEWINNERSANDPRESENTEDTHEAWARDSTOTHEMON3EPTEMBER$ETAILSAREASFOLLOWS p.ATIONAL!WARDSWINNINGATROPHYFROM(2(0RINCESS-AHA#HAKRI3IRINDHORN"AAN4A0A0AO &OREST#OMMUNITYFROM4A0LA$OOK3UBDISTRICT-AE4A$ISTRICT,AMPOON0ROVINCECOVERING RAIAREA7ITHTHECONCEPTOFlLEARNINGANDSOLVINGTHEROOTCAUSESFORRICHFORESTANDSELF SUFFICIENTLIFESTYLEmTHE"AAN4A0A0AOCOMMUNITYSUCCESSFULLYMAINTAINSBIODIVERSITYANDRICHFORESTS 4HANKSTOFULLCONTRIBUTIONOFKEYCOMMUNITYSTAKEHOLDERSVILLAGERSTEMPLESANDSCHOOLSTHE"AAN 4A0A0AOFORESTISWELLRECOVEREDANDBECOMETHEHEARTOFTHECOMMUNITYUNTILNOW p&OOD"ANK&OREST!WARD$ON *AO 0U#OMMUNITY&OREST3AI-OON3UBDISTRICT.AM0ONG $ISTRICT+HON+AEN0ROVINCE NAMEDTHEWINNER$ON*AO0UCOMMUNITYDEFINEDITSCOMMUNITY FORESTASlEDIBLEINEVERYSQUAREINCHm BECAUSETHECOMMUNITYFORESTSHAVEMORETHANSPECIES OFPLANTSMOSTOFWHICHAREFRUITSFOODPLANTSANDHERBS4HECOMMUNITYNOWRELIESONTHEFORESTAS THEMAJORSOURCEOFFOODANDMEDICINE&OODFROMTHEFORESTCANHELPSAVE"AHTPERDAYPER

HOUSEHOLDOR"AHTFORTHEENTIRECOMMUNITYPERYEAR4HECOMMUNITYSPENTPRIZEMONEYFROMWINNINGVARIOUSCOMPETITIONSANDINCOMEGENERATEDFROMTHESALESOFFIREWOODSCOLLECTEDFROMTHEFORESTTOGROWTHEFORESTAREASBYFIVEMORERAITONOWRAIINTOTAL4HECOMMUNITYALSOSTARTEDANEWNURSINGFACILITYTOGROWLOCALHERBSFORFUTURESUSTAINABILITY

Regional Award - Northern region: Wang Ta Mon Community Forest, Na Khun Krai Sub-district, Sri Samrong District, Sukhothai Province, covering 2,000 rai area. The forest is rich of bamboo which is the main source of income for the community members. By managing well the bamboo forests based on self-sufficiency economy or the elderly raises the young bamboo, the project ensures that there is always enough bamboo for everyone and for future use. Regional Award - Northeastern region: Wang Kok Khao Sa Lued Community Forest, Watabaek Sub-district, Tepsatit District, Chaiyapum Province. The Kao Sa Lued got its name from a local plant called pak sa lued which is abundant in the area. This area locates the 5,000-rai forest area that is the origin of waterways. The communitys ability to maintain the rich nature resulted in sufficient water supply that always



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Community Forest Competition (for HRH Princess Maha Chakri Sirindhorns trophy)

4O PROMOTE AND NURTURE COMMUNITY STRENGTH IN PROTECTING COMMUNITY FORESTS THE PROJECT ENCOURAGESCOMMUNITIES TO HAVE IN PLACE GOOD PLANNING SYSTEM AND PROCESS IN FOREST PRESERVATION WITH EXTENSIVE COMMUNITYMEMBERS} PARTICIPATION #OMMUNITIES WITH WELL MANAGED PLAN AND ACTIVITIES BECOME THE ROLE MODELS ANDKNOWLEDGE CENTERS FOR COMMUNITY FORESTRY MANAGEMENT FOR OTHERS

(2( 0RINCESS -AHA #HAKRI 3IRINDHORN HAS GRANTED A TROPHY FOR THE WINNER OF THE COMMUNITY FORESTSCOMPETITION SINCE

)N THE COMPETITION COMPRISES FIVE CATEGORIES 4HEY ARE THE .ATIONAL !WARD &OOD "ANK &ORESTS!WARDS 2EGIONAL !WARDS 0ROVINCIAL !WARDS AND -ERIT !WARDS TOTALING AWARDS 4HE WINNING FORESTS HAVEOUTSTANDING MANAGEMENT SYSTEM COVERING SOCIAL ASPECT WHICH FOCUSES ON COMMUNITY PARTICIPATION IN FORESTPRESERVATION AND PROPER USE OF FORESTS THE ECONOMIC ASPECT WHICH FOCUSES ON GENERATING INCOME AND JOBS FROM THEFORESTS AND THE SUSTAINABILITY ASPECT THAT FOCUSES ON BIODIVERSITY AND PRODUCTIVITY INCREASE PLAN

4HE COMPETITION ATTRACTED MORE THAN COMMUNITY FOREST PROJECTS ACCOUNTING ABOUT EIGHT PERCENT OF THE TOTAL COMMUNITY FORESTS REGISTERED WITH THE 2OYAL &OREST $EPARTMENT AT THAT TIME 4HE WINNERSRECEIVED THE TROPHY CERTIFICATES AND FINANCIAL SUPPORT FOR FOREST PRESERVATION ACTIVITIES TOTALING "AHT MILLION4HE #OMPANY IN COOPERATION WITH THE 2OYAL &OREST $EPARTMENT ANNOUNCED THE WINNERS AND PRESENTED THE AWARDSTO THEM ON 3EPTEMBER $ETAILS ARE AS FOLLOWS

.ATIONAL !WARDS WINNING A TROPHY FROM (2( 0RINCESS -AHA #HAKRI 3IRINDHORN "AAN 4A 0A 0AO &OREST #OMMUNITY FROM 4A 0LA $OOK 3UBDISTRICT -AE 4A $ISTRICT ,AMPOON 0ROVINCE COVERING RAI AREA 7ITH THE CONCEPT OF lLEARNING AND SOLVING THE ROOT CAUSES FOR RICH FOREST AND SELF

SUFFICIENT LIFESTYLEm THE "AAN 4A 0A 0AO COMMUNITY SUCCESSFULLY MAINTAINS BIODIVERSITY AND RICH FORESTS 4HANKS TO FULL CONTRIBUTION OF KEY COMMUNITY STAKEHOLDERS VILLAGERS TEMPLES AND SCHOOLS THE "AAN 4A 0A 0AO FOREST IS WELL RECOVERED AND BECOME THE HEART OF THE COMMUNITY UNTIL NOW

&OOD "ANK &OREST !WARD $ON *AO 0U #OMMUNITY &OREST 3AI -OON 3UBDISTRICT .AM 0ONG $ISTRICT +HON +AEN 0ROVINCE MED THE WINNER $ON *AO 0U COMMUNITY DEFINED ITS COMMUNITY FOREST AS lEDIBLEINEVERYSQUAREINCHmlElEDIDIBIBLEININEVEVERYRYSQUAUA BECAUSE THE COMMUNITY FORESTS HAVE MORE THAN SPECIES OF PLANTS MOST OF WHICH ARE FRUITS FOOD PLANTS AND HERBS 4HE COMMUNITY NOW RELIES ON THE FOREST AS THE MAJOR SOURCE OF FOOD AND MEDICINE &OOD FROM THE FOREST CAN HELP SAVE "AHT PER DAY PER

HOUSEHOLD OR "AHT FOR THE ENTIRE COMMUNITY PER YEAR 4HE COMMUNITY SPENT PRIZE MONEYFROM WINNING VARIOUS COMPETITIONS AND INCOME GENERATED FROM THE SALES OF FIRE WOODS COLLECTEDFROM THE FOREST TO GROW THE FOREST AREAS BY FIVE MORE RAI TO NOW RAI IN TOTAL 4HE COMMUNITYALSO STARTED A NEW NURSING FACILITY TO GROW LOCAL HERBS FOR FUTURE SUSTAINABILITY

Regional Award - Northern region: Wang Ta Mon Community Forest, Na Khun Krai Sub-district, Sri Samrong District, Sukhothai Province, covering 2,000 rai area. The forest is rich of bamboo which is the main source of income for the community members. By managing well the bamboo forests based on self-sufficiency economy or the elderly raises the young bamboo, the project ensures that there is always enough bamboo for everyone and for future use.

Regional Award - Northeastern region: Wang Kok Khao Sa Lued Community Forest, Watabaek Sub-district, Tepsatit District, Chaiyapum Province. The Kao Sa Lued got its name from a local plant called pak sa lued which is abundant in the area. This area locates the 5,000-rai forest area that is the origin of waterways. The communitys ability to maintain the rich nature resulted in sufficient water supply that always

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forestry management with nearby communities. The network continuously grows in size, thus, connecting different community forests in the nearby area to one huge forest area. p2EGIONAL!WARD3OUTHERNREGION"AAN3A+AEW#OMMUNITY&OREST#HAI"URI$ISTRICT3URAT4HANI 0ROVINCE4HECOMMUNITYFORESTISORIGINATEDFROMSTRONGBELIEFIN"UDDHISM"UDDHISTMONKSACTAS THECENTERINCONNECTINGPEOPLEANDPRESERVINGFORESTS9OUNGPEOPLEAREENCOURAGEDTOPARTICIPATE INFORESTPRESERVATIONRESULTINGINSIGNIFICANTSUSTAINABILITY p0ROVINCIAL!WARDSGRANTEDTOWINNERSNATIONWIDE p-ERIT!WARDSPRESENTEDTOWINNERSNATIONWIDE 4HEACTIVITYHASSUCCESSFULLYCREATEDAWARENESSOFTHEGENERALPUBLICONCOMMUNITYFORESTSWHICHAREKEYMECHANISMTOGROWTHENATION}SOVERALL FORESTAREASANDTOMAINTAINTHERICHFORESTSTHATCANBEGOODSOURCESOF FOODANDINCOMEFORGENERATIONS$IFFERENTCOMMUNITIESAREMOREENTHUSIASTIC INDEVELOPINGANDMANAGINGTHEIROWNCOMMUNITYFORESTS-ANYHAVEASKEDFORADVICEANDRECOMMENDATIONSFROMCONCERNEDGOVERNMENTAGENCIESESPECIALLYTHE2OYAL&OREST$EPARTMENT4HISINDIRECTLYENHANCESCLOSERRELATIONSHIPBETWEENCOMMUNITYANDTHEGOVERNMENTAGENCIES!SARESULTCOMMUNITYFORESTSAREMOREEFFICIENTLYMANAGED0EOPLEINEACHCOMMUNITYCANHELPPRESERVEANDGROWTHEIROWNCOMMUNITYFORESTSWHILEREAPINGTHEBENEFITSFROMTHEFORESTSANDCOOPERATEWITHOFFICIALSINPRESERVINGTHENATION}SFORESTRESOURCES

4HEWINNEROFTHENATIONALAWARDHASPLAYEDAVITALROLEASTHECOMMUNITYFORESTRYMANAGEMENTLEARNINGCENTER )TWELCOMES FREQUENTLY REPRESENTATIVES FROMBOTHPUBLICANDPRIVATESECTORS4ODAYCOOPERATIONINCOMMUNITYFORESTPRESERVATIONHASBEENINCREASING4HECOMMUNITYALSOSPENDSTHEFUNDINGFORCOMMUNITYFORESTSTOFURTHERDEVELOPTHEFORESTSTOBETTERSUITDIFFERENTPURPOSESSUCHASFORWORKVISITANDHARVESTAREA

fills the reservoir and sufficient for household consumption and agricultural activities throughout the year. The forest is used as a natural learning hub for other communities. Regional Award - Central and Eastern region: Baan Yang Tone Community Forest, Sai Yok District, Kanchanaburi Province, has won the award for its strong management team. The management team has successfully grown its network in the nearby communities which shared their experiences and knowledge in

Kla Yim Youth Camp l+LA9IM9OUTH#AMPmISANEXTENDEDPROJECTOFTHECOMMUNITYFORESTCOMPETITION4ARGETINGATYOUNGGENERATIONTHEPROJECTAIMSTOPROMOTEGOODUNDERSTANDINGOFNATURALRESOURCESANDTHEENVIRONMENTASWELLASINSTILLING THERESPONSIBILITY TOWARDSNATURAL RESOURCEANDENVIRONMENTALPROTECTIONANDPRESERVATION9OUNGPARTICIPANTSLEARNMOREABOUTTHElNATURALANDCOMMUNITYFORESTSmANDlCOMMUNITYANDFORESTSLIVINGINHARMONYmTHROUGHDIRECTEXPERIENCELEARNING )NTHE#OMPANYCOOPERATEDWITHTHE2OYAL&OREST$EPARTMENTANDTHE9OUTH$EVELOPMENT#ENTER!SSOCIATIONINORGANIZINGTWOYOUTHCAMPSASFOLLOWS



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p 4HE FIRSTYOUTHCAMPHELDDURING/CTOBERAT$OI3UTHEP$OI0UI.ATIONAL0ARK #HIANG-AI0ROVINCE p 4HESECONDYOUTH CAMPHELDDURING/CTOBERAT$OI ,UANG.ATIONAL0ARK #HIANG2AI0ROVINCE !TOTALNUMBEROFJUNIORHIGHSCHOOLSTUDENTSAGEDBETWEENYEARSOLDFROMSCHOOLSPARTICIPATEDINTHEACTIVITIES!LLOFTHEMAREFROMSCHOOLSLOCATEDINUPPER.ORTHERNREGIONWHERETHEREARERICHCOMMUNITYFORESTSESPECIALLYIN#HIANG-AI#HIANG2AI0AYAO,AMPOON-AE(ONG3ONAND2ATCHABURI 4HE l+LA9IM9OUTH#AMPmISARESIDENTNIGHTDAYCAMP0ARTICIPANTSLEARNEDTHROUGHTHESIXSENSESTHROUGHEYESEARSNOSEPHYSICALTOUCHANDMINDATTHESAMETIME4HISENABLESYOUNGSTUDENTSTOEFFECTIVELYREMEMBERTHEEXPERIENCESANDNEWINFORMATION!CTIVITIESWEREWELLPLANNEDANDORGANIZEDTOPROMOTEDESIREDLEARNINGS

Documents

RATCH: Annual Report 2009