1Q19 results
Opportunity Day
23rd May 2019
1Q19 results Opportunity Day 23 rd May 2019 DISCLAIMER The - - PowerPoint PPT Presentation
1Q19 results Opportunity Day 23 rd May 2019 DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains forward - looking statements that relate to future events, which are, by
Opportunity Day
23rd May 2019
2
DISCLAIMER
The information contained in this presentation is intended solely for your reference. This presentation contains “forward-looking” statements that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical fact contained in this presentation including, without limitation, those regarding Banpu Power’s future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where Banpu Power participates or is seeking to participate and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “will”, “may”, “project”, “estimate”, “anticipate”, “predict”, “seek”, “should” or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, which may cause the actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which Banpu Power will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as of the date on which they are made. Banpu Power does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. The information set
concerning the Company. Banpu Power makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward- looking statements represent, in each case, only one if many possible scenarios and should not be viewed as the most likely or standard scenario. No assurance given that future events will occur or our assumptions are correct. Actual results may materially differ from those provided in the forward-looking statements and indications of past performance are not indications of future performance. In no event shall Banpu Power be responsible or liable for the correctness of any such material or for any damage or lost opportunities resulting from use of this material. Banpu Power makes no representation whatsoever about the opinion or statements of any analyst or
content or use of any such opinion or statement. Banpu Power’s securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or sell Banpu Power’s securities in any jurisdiction.
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Operational performance Appendix 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables Review of 1Q19 Key Takeaways Financial performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated
4 3 2 5 Project progress update 1
OUR WAY IN ENERGY
Project Soc Trang Wind 80 MW: completed feasibility study
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Source: *GIZ
DEVELOPMENT MILESTONE
PHASE 1 CONSTRUCTION
2019-2020
PHASE 3 (20 MW) COD PHASE 2 (30 MW) COD PHASE 1 (30 MW) COD INVESTMENT REGISTRATION CERTIFICATE “IRC” MOU 200 MW
2016 2018
PHASE 1 (30MW) COMPLETED FEASIBILITY STUDY AND EIA
1Q19 4Q20 2Q21 4Q21 Phase 3 Phase 2 Phase 1
Average wind speed at 100 m height (m/s) 4-5 5-6 >6
VIETNAM
Soc Trang 80 MW
HANOI HO CHI MINH CITY
PROJECT INFORMATION
SOC TRANG BAC LIU
BPP’S WIND PROJECT
OUR WAY IN ENERGY Area proposed for Sub-station Northern Side of Sub-station
Project Soc Trang Wind 80 MW: site photos
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OVERALL PROJECT LAYOUT Turbine Micrositting for Phase 1
SOC TRANG BAC LIU
Sub-station
110 KV T/L (6km)
Met Mast Hub Height 100 meter
OUR WAY IN ENERGY
Project Soc Trang Wind 80 MW: public hearing
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PUBLIC HEARING AT VINH PHOUC WARD PUBLIC HEARING AT VINH CHAU WARD
OUR WAY IN ENERGY
Project Kurokawa Solar 18.9 MW: system installation
7
54%
1Q19 COD 4Q19
Pond work Electrical work Panel foundation Solar panel installation
Start construction 3Q18
Next step:
drainage system and pond
racking system
electrical work
December 2019
OUR WAY IN ENERGY
Project Yamagata Solar 20 MW: achieved 75% completion
8
75%
1Q19
Next step:
slower pace to be in line with Grid construction completion
racking system in 2H19
substantial completion within 2H2020
PV panel installation PV panel installation Completion of racking installation Mockup for (snow) load test
Start construction 3Q18 COD 3Q20
OUR WAY IN ENERGY
Project Yabuki Solar 7 MW: progress on site preparation
9
10%
1Q19 COD 3Q20
Underground drainage* Soil erosion protection Land deforestation work Project layout
Start construction 3Q18
Next step:
preparation within 3Q19
system and pond
racking system and Installation of PV panel within 1H20
substantial completion within 2H20
Note: *Pipe Installation
OUR WAY IN ENERGY
Project SLG 1,320 MW*: achieved 51% completion
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Note: *Based on 100% basis
51%
1Q19 COD under review Start construction 2016
Boilers:
installation; induced fan installation 80% completed
OVERALL PROJECT LAYOUT
Unit 1 Unit 2
Indirect cooling tower: concrete structure completed; Internal circulating pipeline under installation
OUR WAY IN ENERGY
Project SLG 1,320 MW*: achieved 51% completion
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Chemical building Boiler 2 unit primary fan, induced fan installation Boiler 1 water wall progress Unit 2 generator stator completed
OUR WAY IN ENERGY
Project Luannan phase III 52 MWe: progress on track
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76%
April 2019 COD 2019
generator and excitation transformer
commissioning
equipment of flue gas emission deep cut system
Boiler Environmental protection facilities Turbine and generators
Start construction 2Q18
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Operational performance Appendix 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables
Review of 1Q19
Key Takeaways Financial performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated
4 3 2 5
Project progress update
1
OUR WAY IN ENERGY
Banpu Power 1Q19: conventional power
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Note: *EMJ = Extended Major Overhual, ** Equivalent Availability Factor (EAF) is a percentage and measures of the potential amount of energy that could be produced by the unit after all planned and unplanned losses are removed
BLCP
Resume normal operation with strong and consistent reliability
Hongsa
Completed its yearly maintenance of unit 1 for 18 days while excellent operation of unit 2 helps sustain the overall performance
reliability reflected in EAF**of 1Q19 at 100%
from saving on overhead cost
CHINA LAOS THAILAND
China CHP
Continue high demand during winter resulted in better performance QoQ, mainly driven by strong residential demand
QoQ from strong demand SLG
51%
transmission line construction completion
OUR WAY IN ENERGY
Banpu Power 1Q19: renewable power
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China Solar
Better weather condition result in higher irradiation, reflect in higher power sold
+0.8% QoQ
Japan Solar
Slightly increase in capacity factor from better weather conditions, reflect in higher electricity generation
from Nari Aizu which COD last year
up by 0.7% QoQ
VIETNAM JAPAN CHINA
Vietnam Wind
Completed Feasibility study of phase 1 of 30 MW
within project area and transmission line area
selection
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Operational performance
Appendix 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables Review of 1Q19 Key Takeaways Financial performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated
4 3 2 5
Project progress update
1
OUR WAY IN ENERGY
BLCP operational performance
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EQUIVALENT AVAILABILITY FACTOR (EAF) (%) NET GENERATION (GWh) COAL CONSUMPTION (‘000 t) CONTRACT AVAILABLE HOUR (hr)
2,864 1,983 2,879 1Q18 4Q18 1Q19
QoQ: +45% YoY: +0.5% QoQ: +31% YoY: +0% 1,035 752 1,073 1Q18 4Q18 1Q19 QoQ: +43% YoY: +4% QoQ: +88% YoY: +0% 100% 69% 100% 1Q18 4Q18 1Q19 4,316 2,291 4,314 1Q18 4Q18 1Q19 Resume normal operation with high efficiency
OUR WAY IN ENERGY
Hongsa operational performance
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COAL CONSUMPTION (‘000 t) EQUIVALENT AVAILABILITY FACTOR (EAF) (%) NET GENERATION (GWh) CONTRACT AVAILABLE HOUR (hr) 92% 89% 81% 1Q18 4Q18 1Q19 3,289 3,307 2,926 1Q18 4Q18 1Q19 4,018
4,021 3,422 1Q18 4Q18 1Q19 5,985 6,046 5,354 1Q18 4Q18 1Q19
QoQ: -12% YoY: -11% QoQ: -8% YoY: -11% QoQ: -15% YoY: -15% QoQ: -11% YoY: -11% Planned maintenance of unit 1 while excellent operation of unit 2 helps sustain the overall performance
OUR WAY IN ENERGY
China CHP operational performance
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ELECTRICITY SOLD (GWh) STEAM SOLD (‘000 t) 769 647 507 599 522 669 710 582 764 2,078 1,751 1,939 1Q18 4Q18 1Q19 QoQ: +11% YoY: -7% 127 120 100 207 177 211 125 115 124 459 412 436 1Q18 4Q18 1Q19
Zouping Zhengding Luannan
QoQ: +6% YoY: -5% Strong demand during winter reflect in higher power sold Major growth come from higher steam and hot water demand from residential users
OUR WAY IN ENERGY
China solar: total equity capacity 152.1 MWdc
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POWER SOLD (GWh) 1Q18 4Q18 1Q19 Operating capacity* (MW) 152.1 152.1 152.1
Operational solar 152.1 MW BPP’s effective ownership is 100% Deyuan 51.64 MWDC Xingyu 10.29 MWDC Huien 19.80 MWDC Haoyuan 20.00 MWDC Jinshan 28.95 MWDC Huineng 21.51 MWDC
Zhejiang Shandong Shaanxi Hubei Henan Anhui Jiangsu Shanxi Liaoning Hebei
* installed capacity at the reporting period
OPERATING CAPACITY AVERAGE CAPACITY FACTOR (%) QoQ: + 0.8% YoY: - 0.6% QoQ: +10% YoY: +3% Power sold remained strong from high average capacity factor 42 39 43 1Q18 4Q18 1Q19 13.6% 12.2% 13.0% 1Q18 4Q18 1Q19
OUR WAY IN ENERGY
Japan solar: total equity capacity of 233.3 MWac
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1Q18 4Q18 1Q19 Operating capacity (Total MW) 21.5 58.4 58.4 Operating capacity (Equity MW) 12.6 37.1 37.1
Capacity presented on a 100% basis and equity capacity in parentheses Figure not drawn to scale Mukawa 17 MWAC (9.5) Yabuki 7 MWAC (5.3) Olympia 10 MWAC (4) Hino 3.5 MWAC (2.6) Nari Aizu 20 MWAC (15) Onami 16 MWAC (12) Yamagata 20 MWAC Kurokawa 18.9 MWAC Shirakawa 10 MWAC Kessenuma 20 MWAC Yamagata iide 200 MWAC (102) Awaji 8 MWAC (6)
Equity MW
Note: * Power sold based on 100% basis
Hiroshima 8 MWAC (8)
OPERATING CAPACITY AVERAGE CAPACITY FACTOR (%) POWER SOLD (GWh)
Operational solar Developing solar 37.1 MW Construction 44.2 MW 152.0 MW
(As of 31 March 2019)
QoQ: + 0.7% YoY: - 3% QoQ: +45% YoY: +100% Higher power sold from additional contribution from Nari Aizu which COD last year 8 11 16 1Q18 4Q18 1Q19 13.3% 9.2% 9.9% 1Q18 4Q18 1Q19 Cloudy and snowy days in winter and consolidating large snow area projects; Mukawa and Nari Aizu
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Operational performance Appendix 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables Review of 1Q19 Key Takeaways
Financial performance
1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated
4 3 2 5
Project progress update
1
OUR WAY IN ENERGY
Note: 100% basis for availability payment (AP), energy payment (EP)
(206) 3 79 (59) (29) 729 10 336
QoQ: n.a. YoY: -26%
THB million 1,952 1,104 1,352 2,665 2,102 2,738 168 199 225 4,785 3,405 4,315 1Q18 4Q18 1Q19
QoQ: +27% YoY: -10%
1,882 558 1,279 1Q18 4Q18 1Q19
QoQ: +129% YoY: -32%
AP* EP* 1Q18 4Q18 1Q19 523 387 (46)
FX Gain/loss Based on Banpu Power’s 50% interest Deferred tax
Others TOTAL REVENUE EBITDA PROFIT CONTRIBUTION TO BPP Strong reliability and availability
BLCP financial performance
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OUR WAY IN ENERGY
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Note: *100% basis for availability payment (AP), energy payment (EP)
(348) 20 (138) 957 668 871
QoQ: +7% YoY: +21%
THB million
QoQ: - 8% YoY: -12%
3,655 2,914 3,070 1Q18 4Q18 1Q19
QoQ: +5% YoY: -16% FX Gain/loss
609 734
Based on Banpu Power’s 40% interest
1Q19 4Q18 1Q19 688 3,383 3,061 2,972 2,314 2,371 2,054 5,697
5,433 5,025
1Q18 4Q18 1Q19 AP* EP* TOTAL REVENUE EBITDA PROFIT CONTRIBUTION TO BPP Though lower revenue QoQ, but lower overhead cost help improve EBITDA
Hongsa financial performance
OUR WAY IN ENERGY
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Based on Banpu Power’s 100% interest for Luannan and Zhengding, and 70% for Zouping Luannan Zhengding Zouping RMB/kWh RMB/t
1Q18 4Q18 1Q19
Luannan Zhengding Zouping QoQ: +32% YoY: +2% RMB million QoQ: -4% YoY: -10% QoQ: -1% YoY: -19%
1Q18 4Q18 1Q19
Luannan Zhengding Zouping
Average 1Q19 coal price of 618.5 RMB/t
RMB million RMB million 0.34 0.32 0.32 518 527 519
TARIFF* TOTAL REVENUE PROFIT CONTRIBUTION TO BPP COAL PRICE EBITDA
0.39 0.33 0.33 0.40 0.42 0.42 650 624 651 779 750 704 Luannan Zhengding Zouping
128 116 91 127 105 127 125 110 125
380 330 343
1Q18 4Q18 1Q19
20 17 14 30 19 27 46 42 37
96 79 78
1Q18 4Q18 1Q19
61 47 63
1Q18 4Q18 1Q19
China CHP financial performance
OUR WAY IN ENERGY
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Note: RMB 1.0/kWh of FiT and subsidies for Jinshan, Haoyuan and Huineng phase 1, RMB0.83/kWh for Huineng phase 2 , and RMB0.98/kwh for Hui’en and Deyuan
CHINA SOLAR JAPAN SOLAR
QoQ: +10% YoY: 3% QoQ: +30% YoY: +4%
REVENUE EBITDA
QoQ: +100% YoY: -11%
NET PROFIT CASH DISTRIBUTION (FROM
TK INVESTMENT)
QoQ: n.a. YoY: n.a.
Based on Banpu Power’s 40-75% interest
JPY million RMB million 33 31 34 1Q18 4Q18 1Q19 9 4 8 1Q18 4Q18 1Q19 25 20 26 1Q18 4Q18 1Q19 89 1Q18 4Q18 1Q19
No schedule for cash dividend in 1Q18 No schedule for cash dividend in 1Q19
Solar business financial performance
OUR WAY IN ENERGY
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THB million
Note: * Other i.e., hot water, subsidy for heats
864 687 706 793 691 676 231 188 222 163 146 159 2,051 1,712 1,764 1Q18 4Q18 1Q19 $55 M $52 M $65 M +3% QoQ
China CHP Steam sales
China solar +9% QoQ
China CHP Power sales +3% QoQ
Others* +18% QoQ
China solar Others* China CHP Steam sales China CHP Power sales
Banpu Power: consolidated revenue
OUR WAY IN ENERGY
Banpu Power: consolidated EBITDA
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Note: * Others i.e., hot water, subsidy for heats
523 (46) 387 609 688 734 391 176 362 119 98 137 1,634 925 1,616 1Q18 4Q18 1Q19 +75% QoQ
China CHP +106% QoQ
Japan solar
n.a% YoY SLG equity income n.a.% YoY China solar +40% QoQ +15% YoY US$28M US$50 M US$51M BLCP equity income +74% YoY Hongsa equity income +7% QoQ +21% YoY (1) (3) 10 (7) (1) (1)
SLG Japan solar China solar China CHP Hongsa BLCP
THB million
OUR WAY IN ENERGY
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THB million
EBITDA AS REPORTED INTEREST & TAX NPAT NON- RECURRING ITEMS D&A MINORITY NP FROM OPERATION
1Q18 NET PROFIT AFTER TAX 1Q19 NET PROFIT AFTER TAX 4Q18 NET PROFIT AFTER TAX
THB million
EBITDA AS REPORTED INTEREST & TAX NPAT NON- RECURRING ITEMS D&A MINORITY NP FROM OPERATION EBITDA AS REPORTED INTEREST & TAX NPAT NON- RECURRING ITEMS D&A MINORITY NP FROM OPERATION
BLCP Hongsa China CHP China solar Japan solar SLG 523 1,342 470 609 (123) (40) (15) (872) 391 (114) 119 US$15 M
1,634
Non-recurring items:
Interest - Tax -
THB million
BLCP Hongsa China CHP China solar Japan solar SLG (46) 508 517 688 (155) (71) (8) 9 176 (184) 98 10 US$16 M
925
Non-recurring items:
Interest - Tax -
BLCP Hongsa China CHP China solar SLG Japan solar
387 1,301 1,254 734 (143) (71)
(3)
(47) 362 (97) 137
US$39 M
1,616
Non-recurring items:
Interest - Tax -
(1) (3)
(1) (7) (1)
Banpu Power: consolidated NPAT
OUR WAY IN ENERGY 49,063 41,874 2,539 2,134 7,594
TOTAL ASSETS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
0.03 0.10 0.13 2016 2017 2018
Note: * Net debt to book value of shareholders' equity
Total assets increase by THB 1,898 M to THB 51,602 M in 1Q19 from THB 51,566 M in 4Q18 from the increase in investment in China and Japan
THB million
31 Mar 2019
ASSETS TOTAL SHAREHOLDERS’ EQUITY TOTAL BORROWINGS OTHER LIABILITIES CASH EQUIVALENT
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1Q19 CONSOLIDATED FINANCIAL POSITION GEARING RATIOS
Banpu Power: consolidated financial position
Net debt (Net cash)/ Equity* (x)
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Operational performance Appendix 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables Review of 1Q19
Key Takeaways
Financial performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated
4 3 2 5
Project progress update
1
OUR WAY IN ENERGY
Key takeaways Q1 2019
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SUSTAINABLE BUSINESS PLATFORM
from all operations
including Japan, China and Vietnam office ACCELERATE GROWTH CONTINUED MOVING TOWARDS GREENER FUEL AND TECHNOLOGY 2018 2025 2023
OPERATING EQUITY CAPACITY AT YEAR-END Unit: GWe
2.15
GWe
2.87
GWe
4.30
GWe
NEW PROJECT PIPELINE OPERATING CAPACITY
development and optimize capital allocation
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Review of 1Q19 1 Operational performance Appendix 3.1 BLCP 3.2 Hongsa 3.3 China CHP 3.4 Renewables Looking ahead Financial performance 4.1 BLCP 4.2 Hongsa 4.3 China CHP 4.4 Renewables 4.5 BPP consolidated 3 2 4
OUR WAY IN ENERGY
Coal-fired power maintenance schedule 2019
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1Q19 2Q19 3Q19 4Q19
22 days each in Q4
17.5 days
4Q
each
and unit 5 for 15 days
each
22 days
Major maintenance
U2 U1
CHP LUANNAN BLCP HONGSA CHP ZHENDING CHP ZOUPING
Minor maintenance
22 days U2 17.5 days U1 15 days 7 days U2 25 days 7 days 7 days 15 days U5 7 days U1 7 days U1 35 days 7 days 6 days 8 days 10 days U1 45 days U1 10 days U2 20 days U2 20 days U3 30 days 10 days U4 15 days U4 15 days U1 U4 U2, U3 U1 U3, U4 U5 U3 U3, U4 U1, U2 U3, U4 17.5 days U3 15 days
OUR WAY IN ENERGY
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Zhengding Luannan Zouping
(Hr) (‘000 t) (‘000 t) (GWh)
China CHP operational performance
Higher steam sold (YoY) comes from increased in both industrial and residential demand Higher power sold (QoQ) is
heating season Higher steam sold (YoY) comes from increased residential demand QoQ higher utilization/ electricity sold is because of heating season Lower steam demand from Xiwang Group is the main cause of lower steam sold and electricity sold
UTILIZATION COAL CONSUMPTION ELECTRICITY SOLD STEAM SOLD 108 98 129 1Q18 4Q18 1Q19 1,306 1,231 1,030 1Q18 4Q18 1Q19 2,074 1,906 2,100 1Q18 4Q18 1Q19 1,912 1,671 1,958 1Q18 4Q18 1Q19 117 106 85 1Q18 4Q18 1Q19 120 107 129 1Q18 4Q18 1Q19 125 115 124 1Q18 4Q18 1Q19 127 120 100 1Q18 4Q18 1Q19 207 177 211 1Q18 4Q18 1Q19 710 582 764 1Q18 4Q18 1Q19 769 647 507 1Q18 4Q18 1Q19 599 522 669 1Q18 4Q18 1Q19
OUR WAY IN ENERGY
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HPC Functional currency: THB
NET LIABILITY NET ASSET
BLCP Functional currency: USD
USD$238M (THB 5,212M) (THB 378M) (THB 261M) THB 31.81/USD THB 31.81/USD THB 32.45/USD 100% basis Based on BPP’s interest
40% equity in HPC 50% equity in BLCP
USD$594M (THB 945M) (THB 10,424M) (THB 521M) THB 30.22/USD
Assuming 5% depreciation of USD against THB
CURRENCY EXPOSURE BPP’S NPAT IMPACT 1Q19 APPROXIMATE FX EXPOSURE BPP’S NPAT 5% SENSITIVITY 2Q19
BPP’s portion (THB 138M) (THB 345M) 100% basis THB 79M THB 158M
FX impact analysis guidance on P&L
OUR WAY IN ENERGY
Banpu Power : Income statement
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THB million
1Q19 4Q18 1Q18 QoQ% YoY% Sales revenue 1,763.8 1,711.4 2,050.3 3%
Cost of sales (1,339.9) (1,365.8) (1,517.5) Gross Profit 423.8 345.6 532.8 23%
GPM 24% 20% 26% Administrative expense (257.5) (361.4) (243.3)
6% Equity income 1,116.2 651.9 1,123.9 71%
Dividend income
199.9 127.3 106.8 57% 87% Amortization on fair value (9.4) (9.6) (8.9)
5% EBIT 1,473.1 770.5 1,511.2 91%
Interest expenses (69.4) (68.6) (38.5) Financial expenses (1.9) (2.3) (1.8) Income tax (core business) (110.3) (81.5) (110.5) NCI/Minorities (3.1) (8.0) (14.5) Net profit – Core business 1,288.4 610.1 1,345.9 111%
Non-recurring items (8.0) (14.1) (908.4) Income tax (non-core business) (0.5) (6.3) (2.7) Deferred tax income (expenses) 13.3 (96.2) (0.5) FX translation (38.8) 23.2 35.5 Net Profit 1,254.5 516.7 469.9 143% 167%