business to record a lower market gross refinery margin (GRM) compared to Q2/2018. However, market GRM (Restate) 7/ Management Discussion and Analysis of Business Operation for Q2/2019 Bangchak Corporation

% 8.57 8.11 5.6% Net interest margin 2.31% 2.35% 2.27% (0.04)% 0.04% 2.33% 2.33% - Net fees and service income to operating income ratio 22.7% 24.7% 24.1% (2.0)% (1.4)% 23.7% 23.4% 0.3% Expense to

(Baht) 4.28 4.22 4.22 1.4% 1.2% 12.84 12.34 4.1% Net interest margin 2.30% 2.31% 2.33% (0.01)% (0.03)% 2.32% 2.33% (0.01)% Net fees and service income to operating income ratio 23.2% 22.7% 22.8% 0.5% 0.4

% EBIT margin 16.5% 7.4% 9.1% 15.2% 14.7% 0.5% EBITDA margin 20.6% 11.5% 9.1% 19.5% 18.9% 0.6% อตัรำก ำไรสทุธสิ ำหรับงวด 12.2% 3.7% 8.5% 12.3% 11.6% 0.7% อตัรำก ำไรสทุธสิว่นทีเ่ป็นของบรษัิท 12.1% 3.3% 8.8

กการขาย 19.6% 17.8% 1.8% 20.1% 17.9% 2.2% EBIT margin 15.5% 17.3% -1.8% 14.8% 17.2% -2.4% EBITDA margin 20.1% 21.8% -1.6% 19.2% 21.4% -2.3% อตัราก าไรสทุธ ิ 13.1% 14.6% -1.5% 12.3% 14.3% -2.0% ในเดอืนก

machinery, equipment and related expenses to increase the production capacity of the flexible packaging products another Baht 40 million. This is to increase the proportion of high gross margin products. In

increase the proportion of high gross margin products. In addition, the acquisition of assets mentioned above is the acquisition of assets according to the Notification of the Capital Market Supervisory

Solar PV Pty Ltd, an indirect subsidiary that is wholly owned by RATCH-Australia Corporation Pty Ltd has commenced commercial operations and recognition of benefit as per the Power Purchase Agreement. 70

standards. The key changes from the adoption of the above financial reporting standards are in the following areas:  The concept of interest recognition will be changed to recognize at effective interest

-18 Million Baht 6 3. KEY FINANCIAL RATIOS 31 December 2018 31 December 2017 Gross Profit Margin 34.4% 33.1% Net Profit Margin1 57.5% 53.5% Return on Equity 16.9% 19.8% Debt/Equity Ratio 0.69x 0.70x Net