materials) where global demand is increasing at around 5%. With the acquisition of these leading downstream businesses consisting of both Ethylene Oxide and Indorama Ventures 2nd Quarter 2019 MD&A 4 Propylene

) Industrial and chilled water Revenue (THB million) Natural gas (SPP) Maintenance fee Other raw materials Cost of sales and services (exclude depreciation and amortization) (THB million) Management Discussion

) Natural gas (SPP) Maintenance fee Other raw materials Others Cost of sales and services (exclude depreciation and amortization) (THB million) Industrial and chilled water +9% YoY +14% QoQ -4% YoY Management

E_1 Legal_FA_2015_12_29-c A CorpL4.1hig A Executive Summary of Management Discussion and Analysis 1 For the Year Ending December 31, 2019 Thai economy in 2019 showed decelerating growth at 2.4 percent compared to 4.2 percent in the previous year.The slowdown could be attributed to exports which contracted further due to the stronger Baht and a global economic slowdown. In addition, the investment environment of both the public and private sector remained weak, and private consumption, albeit gro...

; primarily from decreasing in raw materials and medical supplies. The inventory turnover period was 5 days, remained the same as 2016. The Company and its subsidiaries recorded allowance for non-movement

(SPP+VSPP) Steam -5% YoY +15% QoQ Natural gas (IPP)Electricity (IPP) Revenue (THB million) Natural gas (SPP) Maintenance fee Other raw materials Others Cost of sales and services (exclude depreciation

materials Others Cost of sales and services (exclude depreciation and amortization) (THB million) Industrial and chilled water 33% 17% 54% 71% 5% 5%5% 3%3% 4% 8,471 8,798 1H/60 1H/61 31% 13% 20% 56% 75% 68% 5

(THB million) Natural gas (SPP) Maintenance fee Other raw materials Others Cost of sales and services (exclude depreciation and amortization) (THB million) Industrial and chilled water +66% YoY +7% QoQ

utilization rate to available capacity, and eventually a higher cost of goods produced and low margin. To offset a slowdown in orders, the Company reduced costs by obtaining better sources of raw materials

. Waratkris is on the top ten shareholders list of a listed company operating the business in relation to distribution of metal products to be raw materials of various types of industries. 4 In accordance with