BT Wealth Industries Public : Management Discussion and Analysis Quarter 2 Ending 30 Jun 2022 -Revised

BTW 2565010

Subject	Management Discussion and Analysis for the 2nd quarter and the six month period,
	ended June 30, 2022
To	The President
	The Stock Exchange of Thailand

August 9, 2022

Management Discussion and AnalysisMD&A

Business Overview

Operating results for the 2nd quarter and the six month period, ended June 30, 2022

The Company's operating results for the 2nd quarter of , net profit increased from the same

quarter of by million baht or , as a result of many countries being relieved from the Corona 2019 virus pandemic and able to travel As a result, the Company has received new projects from overseas customers, which are steel structures In addition, during the second quarter of this year, some projects received additional work or variation orders, resulting in increase this quarter's revenue A result of that, gross profit increased from the same period last year In addition, the ratio of cost of fabrication work to revenue from fabrication work for the 2nd quarter of 2022 improved from 2021 or 9060 and 126

5933 39 1 10310 662 314 2151 2 662 319 7301 2 0107558000431 5933 Soi Ramkhamhaeng 39 Thep Leela 1, amkhamhaeng Rd, Wangthonglang, Bangkok 10310 Tel[phone] Fax[phone] Business Registration No 0107558000431

respectively Overall cost of fabrication work for the quarter were higher, mainly due to the increase in staff and labor costs, overtime and wages, etc

Administrative expenses for the 2nd quarter ended June 30, 2022 increased from the same period of the previous year by 983 million baht or 43, mainly from salaries, allowances, overtime, rental expense, consulting fees, service fees and other etc

For the first six month period of 2022, the Company had a total operating profit of 4181 million baht, an increase of 13967 million baht or 143from the same period of 2021 The revenue from fabrication work and services for the first half of 2022 amounted to 1,01637 million baht, an increase of 41412 million baht or 69from the same period of last year Most of the revenue that we recognized in the first six months of this year came from modularization, vessel & tanks, and steel structure, etc From the situation of the pandemic of Covid 19 that has greatly improved, besides the company received projects from domestic customers, we also received new projects from foreign customers as well, resulting in revenue in the first six months of this year increased As for the cost of fabrication work and services for the first six months of 2022 compared to 2021, we found that the Company's costs of fabrication work increased from the previous year as well In particular, workers with increased wages, compensation and incentives, or overtime, as well as increasing the number of workers

Administrative expenses consist of employee expenses, rental expenses and other service fees, etc For the first six month period of 2022, administrative expenses were higher than the same period of the

5933 39 1 10310 662 314 2151 2 662 319 7301 2 0107558000431 5933 Soi Ramkhamhaeng 39 Thep Leela 1, amkhamhaeng Rd, Wangthonglang, Bangkok 10310 Tel[phone] Fax[phone] Business Registration No 0107558000431

previous year by 2207 million baht or 47 This was mainly due to the loss on foreign exchange rates of forward contractsHowever, when comparing the proportion to sales in each period, administrative expenses for the first six months of 2022 were similar to the same period of 2021 or 677and 777, respectively

The financial cost for the first half of 2022 is slightly higher than the first half of 2021Most of these are interest expenses and bank fees for short term promissory notes and letter of credit for importing or purchasing materials in the country, etc

Financial Position

The company has total assets of 1,84516 million baht for the first half of the year 2022, an increase from 31 December 2021 by 19345 million baht or 12 This was mainly due to an increase in trade accounts receivable and other receivables approximately 14661million baht, which the increase in receivables varies according to the recognition of revenue from projects in the previous period The unbilled income increased by 3235 million baht, including the increase of goods and raw materials about 4556 million baht, resulting in an increase in total assets from the end of last year

For the first half of 2022, the Company had total liabilities of 79873 million baht, an increase of 15147 million baht or 23from December 31, 2021, mainly due to an increase in trade and other payables of approximately 17394 million baht, including advance construction income approximately 12 million baht However, short term loans from financial institutions decreased by 5082 million baht

Shareholders' equity for the first half of 2022 increased from the year end of 202, from 1,00446 million baht to 1,04643 million baht, respectively The result of recognition of operating profit for the first half of 2022 amounted to 4198 million baht

5933 39 1 10310 662 314 2151 2 662 319 7301 2 0107558000431 5933 Soi Ramkhamhaeng 39 Thep Leela 1, amkhamhaeng Rd, Wangthonglang, Bangkok 10310 Tel[phone] Fax[phone] Business Registration No 0107558000431

Financial Ratio

As of June 30, 2022, the Company's liquidity ratio was 159 times, which was not much different from that of December 31, 2021, or 164 times

Interest Coverage ratio as of June 30, 2022, was 1370 times, an increase from December 31, 2021 as a result of the Company's operating profit in the first half of 2022, thus increasing this ratio

Backlog Value as of June 30, 2022

Backlog as of June 30, 2022, totaling 1,12956 million baht Most of the remaining works are modularization, steel structure, and vessel& tank It is expected to be completed in the future or within 1 2 years

5933 39 1 10310 662 314 2151 2 662 319 7301 2 0107558000431 5933 Soi Ramkhamhaeng 39 Thep Leela 1, amkhamhaeng Rd, Wangthonglang, Bangkok 10310 Tel[phone] Fax[phone] Business Registration No 0107558000431

Factors effecting the Groups performance in the future

1. Litigation, on 29 June 2022, a subsidiary was sued by a local company, consortium party, claiming compensation of approximately Baht 706 million, together with interest, for an alleged breach of consortium contract The case is under consideration of the court The Groups management and the legal advisor consider that the case is groundless and that the ultimate resolutions of these legal proceedings is not likely to have a material effect on the results of the Groups operations, or its financial position The Group therefore has not recorded provision in its accounts
2. The current situation of the Coronavirus disease 2019 COVID 19 pandemic has gradually improved and most of the countries allow both business and tourism travel Therefore, the

Company has more opportunities to travel to meet with existing customers and find new customers in abroad In the past, the management and our team have traveled to meet with customers in abroad for the current projects that the Company is working on, including existing customers and prospective customers We believe that in the near future, the Company has more opportunities or projects from abroad

Lastly, the company believes that our business will be sustainable in the long term due to our strong business background and long experience and expertise We will certainly be able to deliver valuable work that meets our customers needed

Please be informed accordingly

Yours sincerely,

Mr Chotic Russamitinakornkul

Chief Executive Officer

BT Wealth Industries Public Company Limited

5933 39 1 10310 662 314 2151 2 662 319 7301 2 0107558000431 5933 Soi Ramkhamhaeng 39 Thep Leela 1, amkhamhaeng Rd, Wangthonglang, Bangkok 10310 Tel[phone] Fax[phone] Business Registration No 0107558000431