Economic Performance

Economic Performance ^{(GRI 3-3)}  and  Indirect Economic Impacts

                Creating economic value through an environmentally friendly power generation business model is the key to creating shared values between the Company and society to grow together sustainably and efficiently. In 2025, the Company formulated important business strategies such as strategies to increase revenue, improve electricity production efficiency to increase the maximum capacity utilization rate, increase the amount of electricity sold, and reduce production costs, and growth by expanding investment to generate good performance of the Company which leads to the distribution of income and benefits to all groups of stakeholders of the Company.

Management Guidelines

• Management of power purchase agreements for power plants with current power purchase agreements as there are three current power purchase agreements with the Electricity Generating Authority of Thailand and it is sold to the cement plants with different prices in each agreement. For example, a selling electricity price per unit for the 90 MW project has an adder included in the base electricity cost. Therefore, it plans to manage to sell electricity to the full agreement in this part. The second part is the electricity sales agreement with the cement plants, which has the second highest electricity rate, but the cost of coal-fired power generation is higher than that of waste-fired power plants and the 18 and 55 MW power sale contracts where the adder has already expired since the electricity tariff is based on the TOU electricity scheme, the price of electricity during the peak time will be higher than the off-peak period. Therefore, it is necessary to plan the operation of the power plants in order to maximize revenue in case of limited production due to boiler maintenance shutdown and plan to reduce electricity distribution during off-peak periods in case of being affected by coal fuel cost price for profit optimum with the Company.
• Increasing the amount of electricity production and distribution as the adder in the electricity agreements with PEA in 2022 starts to expire and the cost of coal prices has increased very high. The plans for major maintenance have resulted in a decrease in power generation and electricity sales. In 2023, the electricity rate has increased due to the increase in the variable FT electricity. Therefore, production planning since 2023 is to operate the power plants with more production capacity to generate more profit than in 2022.
• Reducing production costs, which means fuel costs, fuel efficiency in power generation, and maintenance costs, has organized a plan of action in order for business operations to establish a clear goal of reducing total production costs by at least 10% by:

• Reducing fuel plants will be carried out to increase the proportion of municipal waste and low-quality sorting waste, which will reduce the overall raw material purchase cost.
• Using a higher proportion of low-quality waste fuels in order to reduce the cost of steam production per unit. The Company has implemented grate incinerators and boilers that support unsorted waste and low-quality waste, making it a management guideline to reduce fuel costs and power generation costs.
• Applying the combustion control system, if implemented, can increase the efficiency of power generation, expected to reduce the cost of power generation in AI-powered generating units by approximately 5%.
• Reducing coal consumption with alternative fuels from waste, wood, and other renewable fuels in the Boilers 8, which can reduce coal consumption by 10-15%.
• Maintenance costs by planning major maintenance shutdowns continuously from 2022, causing investment in major renovations of the boilers and allowing for reduced long-term maintenance costs for power plants and increased efficiency in power generation.

• Investment project to increase the volume of green electricity sales, totaling Baht 14,094 million

The Company has advanced its investments to expand production capacity and secure additional power purchase agreements for a total of 7 projects, focusing on a full transition to clean energy to achieve the goal of being an organization that uses entirely green energy with net zero greenhouse gas emissions. A key plan in early 2026 is to commit to phase out the use of coal fuel completely, switching to refuse-derived fuel and renewable energy instead. This is to drive the organization towards Carbon Neutrality by 2037 and achieve the ultimate net-zero target for greenhouse gas emissions by 2050, thereby supporting the transition to a low-carbon society and contributing to sustainable energy security at the international level. The details are as follows:

1. Commercial operation of the ground-mounted solar power plant project (Solar Farm) Zone 1 & 2 with an installed capacity of 225 MWdc (52.2 MWac): The project demonstrates a high level of readiness in corporate governance and compliance with engineering standards, and has obtained the Construction Permit (Or.1), Factory Operating License (Ror.Ngor.4), and investment promotion approval from the Board of Investment (BOI). The project has entered into a Power Purchase Agreement (PPA) with TPI Polene Public Company Limited and has successfully commenced Commercial Operation Date (COD) since the third quarter of 2025.
2. Expansion of renewable energy capacity through the commercial operation (COD) of a rooftop solar power project (Solar Rooftop) at the roof tile manufacturing plant, with an installed capacity of 012 MWdc (5.05 MWac): The project has entered into a Power Purchase Agreement (PPA) with TPI Polene Public Company Limited and has been supplying electricity to the system commercially (COD) since the second quarter of 2025.

During 2025, the Company continued to expand its renewable energy generation capacity to support resilient growth by developing the ground-mounted solar power project (Solar Farm) Zone 3 with an installed capacity of 11.9925 MWdc (9.6 MWac). The project has progressed in line with the Company’s strategic development plan. At present, it has obtained the Construction Permit (Or.1) and is currently in the process of developing the infrastructure in preparation for commercial operation (COD) in January 2026. The project has entered into a Power Purchase Agreement (PPA) with TPI Polene Public Company Limited.

4. In 2025, the Company continued to expand the share of renewable energy through the development of the ground-mounted solar power project (Solar Farm) Zone 4, with an installed capacity of 12.96 MWdc (9.0 MWac) and an additional capacity of 5.48 MWac to support the growing demand for clean energy within the Group. The project has entered into a Power Purchase Agreement (PPA) with TPI Polene Public Company Limited and forms part of the Company’s strategy to efficiently manage energy costs and support decarbonization target across the supply chain. The project is expected to commence Commercial Operation Date (COD) in January 2027.
5. 5. For the environmentally friendly closed-system municipal solid waste-to-energy project of Mukdahan Town Municipality, the Company signed a project agreement with the Mukdahan Provincial Administrative Organization (PAO) on December 21, 2023, and subsequently entered into a Power Purchase Agreement (PPA) with the Provincial Electricity Authority (PEA) on February 27, The project has a maximum contracted electricity supply of 8.00 megawatts and is currently under construction, with the Scheduled Commercial Operation Date (SCOD) expected by the end of 2026.
6. 6. The Company signed a municipal solid waste-to-energy project management agreement in Chiang Rai Province on October 2, 2024, with a maximum proposed electricity supply of 00 megawatts. Subsequently, on November 20, 2024, the project proceeded with preparations for the Code of Practice (CoP) report, and is currently awaiting the signing of the Power Purchase Agreement (PPA) with the Provincial Electricity Authority (PEA).
7. 7. Joint Venture Project with Electricity Generating Public Company Limited (EGCO): The Company has established E & T Renewable Energy Company Limited as a joint venture, with a registered capital of Baht 2,000 million and a paid-up capital of Baht 500 The objective is to operate power plant businesses, including solar power plants and ground-mounted solar power plants integrated with a Battery Energy Storage System (BESS). E & T Renewable Energy Company Limited has participated in the bidding for renewable electricity generation projects under the Feed-in Tariff (FiT) scheme for the period 2022–2030 for the group with no additional fuel costs. It was selected as the winning bidder for six projects, with a total proposed electricity supply capacity of 280.50 megawatts. Each project is expected to gradually commence Scheduled Commercial Operation Date (SCOD) starting from 2028 onwards.

The Company analyzes and evaluates its operational performance to eliminate obstacles and enhance profitability by setting targets within its sub-units and communicating strategies to employees to drive the organization in a unified direction. Concurrently, it is expanding its business base in accordance with Thailand's Power Development Plan (PDP) and building partnerships for stable growth. Over the past three years, the Company has focused on investing in advanced engineering technologies to transition to clean energy power plants. These operations not only create energy security and sustainable returns, but also directly contribute to reducing carbon dioxide emissions and enhancing the efficiency of carbon credit management to concretely reduce environmental impacts.

Performance Results in 2025 ^{(GRI 201-1)}

In 2025, the Company directly distributed economic value to stakeholder groups, creating a cumulative economic value of Baht 999.75 million. The breakdown is as follows:

Note : * Based on the Company's separate financial statements