Absolute Clean Energy Public Company Limited Analyst Meeting Q12020 - - PowerPoint PPT Presentation

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Absolute Clean Energy Public Company Limited Analyst Meeting Q12020 - - PowerPoint PPT Presentation

Absolute Clean Energy Public Company Limited Analyst Meeting Q12020 Ticker: ACE (SET100) Disclaimer The information contained in this presentation is strictly confidential and is provided by Absolute Clean Energy Public Company Limited (the


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Absolute Clean Energy Public Company Limited

Analyst Meeting Q1’2020

Ticker: ACE (SET100)

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Strictly Private & Confidential The information contained in this presentation is strictly confidential and is provided by Absolute Clean Energy Public Company Limited (the "Company") to you solely for your information which is the same information as that contained in the recent filing and draft prospectus submitted to the Thai Securities and Exchange Commission. Neither this presentation nor any part hereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form

  • r by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the

Company and its respective affiliates or advisors. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without the prior express consent from the Company and its respective affiliates or advisors. Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, no representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this

  • presentation. The information is subject to any change without notice whether before or after such change is made, its accuracy is not guaranteed, has not been independently

verified and it may not contain all material information concerning the Company and its subsidiaries. None of the Company nor any of its respective affiliates or advisors nor any of its or their respective members, directors, officers, employees or affiliates assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. Accordingly, none of the above nor any other person accepts any liability (in negligence, or otherwise) for any loss arising from or in connection with any use of this presentation or its contents. This presentation is for information purposes only and does not constitute or form whole or part of any offer, invitation or solicitation by or on behalf of the Company for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities of the Company, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto (“Securities”) in Thailand, the United States or any other jurisdictions. Any recipient considering a purchase of Securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in a final offering document (which may be different from the information contained in this presentation ) and subject to the selling restrictions set out therein. No public offering of the Securities will be made in the United States or in any other jurisdiction outside of Thailand where such an offering is restricted or prohibited. This presentation should not be construed as legal, tax, investment or other advice. The information contained herein does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. In addition, this presentation contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks which are in many cases beyond the control of the Company, and which may change over time and may cause actual events and the Company's future results to be materially different than expected or indicated by such statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those anticipated by the Company in the forward looking statements. The recipient is cautioned not to place undue reliance on these forward looking statements. In providing this presentation, the Company does not undertake to provide any recipient with access to any additional information or to correct any inaccuracies herein which may become apparent.

Disclaimer

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Strictly Private & Confidential

Operating performance Financial Highlights Business Updates I III

Table of Contents for Analyst Presentation

II

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Business Updates

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Strictly Private & Confidential

5

92%

Q1’20 Key Highlights : Key Events in Q1’20 + Events after the reporting date

Project Under Construction

MSW Krabi 5 MW

  • January 2020 : EXIM refinance ABA’s project loan at Prime rate -2.5%
  • February 2020 : AAA’s loan contract revision 1) PN at MLR -2.5% till 2021 2) Loan at MLR -2.5% from 2022-2023 and MLR -1.5%

throughout loan term

  • June 2020: ACE included in SET 100, FTSE SET Mid Cap and FTSE SET Shariah indexes.
  • Other related event : 10 April, SCB decrease MLR rate to 5.375%

22 May, SCB decrease MLR rate to 5.25%

Capital Structure

Waste landfill Project, Udon Thani

32%

Q1’2020 Status

Insurance Claim

During the period ended 31 March 2020, an indirect subsidiary received claims from an insurance company totalling Baht 171.95 million. The compensation claim was for the event of damaged machinery during the test run (Commissioning & Test Run) of a power plant in 2016 for which the machinery has been restored to normal operating conditions/2.

Remark: /1 Current status is 47% /2 The powerplant did go into commercial operation on schedule

Solar Rooftop(ACE Solar) 0.83 MW Q1’2020 Status Q1’2020 Status/1

37% Expected COD Q1’2021 Currently in operation Expected operate Q3’2020

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Strictly Private & Confidential

6 85.2 209.5 210.5 212.2 214.47 421.37 421.37 1,000

2016 2017 2018 2019 2020 2021 2022 2024

421.37

“To be the world practical model of Clean energy powerplant, which is responsible for environment, society, and shareholders”

1979/1 (40 years ago): Shaiyo Triple A Group Board of directors have experienced to lead rice, corns, cassavas and woodchips producer and exporter, has expertise in agriculture industry and R&D in the fast growing tree and intrigued in exploring the energy sector. 2016: First COD of VSPP “ALCP” MSW Power Plant 2015: Established Absolute Clean Energy (ACE) as a Holding Company with initial paid-up capital of THB 0.5 mm. 2017: First COD of SPP “AAA” Cogeneration Power Plant 2017: Won and secured 4 SPP Hybrid Bidding

  • f total 93 capacity

MW 2018: First COD of VSPP Solar Rooftop 2012: First COD of VSPP “ACP1” Biomass Power Plant 2024: Expected to secure an installed capacity

  • f 1,000 PPA MW

and becomes Thailand’s largest biomass power producer 2022: Estimated to COD all projects/2 (421.37 MW)/3 Unit: MW

ACE’s Key Development Milestones

Remark : /1 http://www.saaa.co.th/SAA_ENG/home.php /2 Estimated timeline: Currently, Arbitration result states that PEA has to return PPA to ACE and with the assumption that normally power project’s construction period is approx. 2 years /3 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE

ACE’s Total Capacity MW/3 over time

2019: Listed in Stock Exchange of Thailand

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Strictly Private & Confidential

7

A ACE Business Portfolio in Thailand

Power Type Biomass Co-generation MSW Solar ACE’s Holding Stake in Projects 100.0% 100.0% 100.0% 100.0% 100.0% Existing + Pipeline Projects

9+14+1/1 1+0 1+1 4+2

Capacity MW (Total Capacity MW) PPA MW to Government & IU (Total PPA MW)

89.1 201.9 114.35 3.56 1.46 6.0 5.0 Remark: /1 Including APP’s capacity MW of 9.9. Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE /2 Electricity Sale Agreement (ESA) with IU Total: 291.0/1 Total: 114.35 Total: 11.0 Total: 5.02/2 72 164.31 90 4.5 4.4 Total: 236.31/1 Total: 90 Total: 8.9 Total: 5.02 Existing Under Development + Pending for Development

Overview of ACE’s Portfolio

/1 /1

3.56 1.46

COD: 213.01 Pipeline: 208.36 Total: 421.37 COD: 15 Pipeline: 18/1 Total: 33/1 COD: 170.06 Pipeline: 170.17 Total: 340.23

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Strictly Private & Confidential

8 Assets Overview

Surin:

  • No. 3

Khonkaen:

  • No. 2 and 9

Roi-et:

  • No. 5

Nongkhai:

  • No. 6

Lampang:

  • No. 7

Ubonratchathani:

  • No. 8

Chachoengsao:

  • No. 10

Kanchanaburi:

  • No. 11

Kampangphet:

  • No. 18, 19
  • SPP – Hybrid

Srisaket:

  • No. 27

Supanburi:

  • No. 20

Nakornpathom:

  • No. 21

Amnatcharoen:

  • No. 24

Lopburi:

  • No. 25

Krabi:

  • No. 17

Pracheenburi:

  • No. 26

Ranong:

  • SPP - Biomass

▪ Operating projects ▪ Under development projects and Pending for development projects

Nakhon Si Thammarat:

  • 2 SPP - Biomass

COD Biomass SCOD Biomass COD Cogeneration COD MSW SCOD MSW SCOD 4 SPP-Hybrid Solar

Well-Balanced Portfolio with Diversified Locations

Source: Company information as of May 2020 Remark: /1 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE /2 Estimated timeline: Currently, Arbitration result states that PEA has to return PPA to ACE and with the assumption that normally power project’s construction period is approx. 2 years

Chonburi:

  • No. 1, 12, 14, 23, 28

Samut Sakhon:

  • No.15

Nakhon Ratchasima:

  • No. 4, 13 ,22,29 and 30

Type Installed / Equity MW PPA MW Location COD / SCOD Date Status 1 VSPP - Biomass 9.9 8 Chonburi 4/24/2012 2 VSPP - Biomass 9.9 8 Khonkaen 5/2/2012 3 VSPP – Biomass 9.9 8 Surin 10/30/2012 4 VSPP – Biomass 9.9 8 Nakhon Ratchasima 1/16/2013 5 VSPP – Biomass 9.9 8 Roi-et 6/4/2013 6 VSPP – Biomass 9.9 8 Nongkhai 12/26/2013 7 VSPP – Biomass 9.9 8 Lampang 7/9/2014 8 VSPP – Biomass 9.9 8 Ubonratchathani 8/14/2015 9 VSPP – MSW 6 4.5 Khonkaen 11/29/2016 10 SPP - Cogen 114.35 90 Chachoengsao 2/10/2017 11 VSPP – Biomass 9.9 8 Kanchanaburi 8/16/2017 12 VSPP – Solar Rooftop 1 0.9 Chonburi 11/20/2018 13 VSPP – Solar Rooftop 0.73 0.57 Nakhon Ratchasima 2/22/2019 14 1 Solar Rooftop 1 0.9 Chonburi 9/27/2019 15 1 Solar Rooftop 0.83 0.66 Samut Sakhon May 2020 COD 3 SPP – Hybrids 1 SPP – Hybrid 93 76.31 2021 EIA process EIA Approved 17 VSPP – MSW 5 4.4 Krabi Q1 2021 Under Construction 18 VSPP – Biomass 9.9 8 Kampangphet Within 2022 19 VSPP – Biomass 9.9 8 Kampangphet Within 2022 20 VSPP – Biomass 9.9 8 Supanburi Within 2022 21 VSPP - Biomass 9.9 8 Nakornpathom Within 2022 22 VSPP - Biomass 9.9 8 Nakhon Ratchasima Within 2022 23 VSPP - Biomass 9.9 8 Chonburi Within 2022 24 VSPP - Biomass 9.9 8 Amnatcharoen Within 2022 25 VSPP - Biomass 9.9 8 Lopburi Within 2022 26 VSPP - Biomass 9.9 8 Pracheenburi Within 2022 27 VSPP – Biomass 9.9 8 Srisaket Within 2022 Under consideration

  • f Administrative

28 VSPP – Biomass/1 9.9 8 Chonburi Within 2022 Under negotiation SCOD/2 29 1 Solar farm 0.77 0.6 Nakhon Ratchasima 2020 Under development 30 1 Solar farm 0.69 0.54 Nakhon Ratchasima 2020 Under development Total Projects 421.37 339.38 Under negotiation SCOD/2 COD Under Development and pending for development (18 projects) Existing Projects (15 Projects)

2 1

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Strictly Private & Confidential

9

Project Type Location Project Name Installed MW PPA MW Equity Stake Target SCOD Current Status Construction Progress SPP Hybrid Nakhon Si Thammarat BPP2 25 21.5 100.00% 2021 EIA Approval Process N/A SPP Hybrid Kampangphet BPP3 20 13.31 100.00% 2021 EIA Approved N/A SPP Hybrid Nakhon Si Thammarat ACE Solar 1 25 21.5 100.00% 2021 EIA Approval Process N/A SPP Hybrid Ranong ACE Solar 2 23 20 100.00% 2021 EIA Approval Process N/A VSPP – MSW Krabi ALCP 6 5 4.4 100.00% Q1 2021 Under Construction VSPP – Biomass Kampangphet ACP4 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP – Biomass Kampangphet ACP7 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP – Biomass Supanburi ACP5 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP - Biomass Nakornpathom ACP6 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP - Biomass Nakhon Ratchasima AAPP3 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP - Biomass Chonburi ALCP5 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP - Biomass Amnatcharoen AFT1 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP - Biomass Lopburi BPP1 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP - Biomass Pracheenburi PSPR1 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A VSPP – Biomass Srisaket ALCP4 9.9 8 100.00% Within 2022 Under consideration of Administrative Court N/A VSPP – Biomass/1 Chonburi APP1 9.9 8 100.00% Within 2022 Under negotiation SCOD N/A Solar Rooftop Samut Sakhon ACE Solar 5 0.83 0.83 100.00% 2020 COD in May 2020 Solar farm Nakhon Ratchasima ACE Solar 6 0.77 0.77 100.00% 2020 Under development N/A Solar farm Nakhon Ratchasima ACE Solar 7 0.69 0.69 100.00% 2020 Under development N/A Waste landfill Udon Thani

  • 100.00%

Q3 2020 Under construction Total 209.19 171.00

Q1’20 Key Highlights : Project Updates

32% 92% Remark: /1 Including APP’s capacity MW of 9.9. Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE 37%

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Operating Performance

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ACE’s Biomass Powerplant

ACP1 Ban Bueng ACP2 Phonthong ACP3 Bo Ploy ABA1 Thoen ALCP1 Si Chiang Mai ALCP2 Sirindhorn AAPP2 Chokchai AAPP1 Tanee AAP1 Nam Phong

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ACE’s Biomass Operating Performance

Plant Performance (9 Projects) Gross Profit and Margin

Availability Factor* Capacity Factor** Key Observation

  • Gross Profit and Gross Profit Margin

▪ QoQ : +5% in Gross Profit and +1% in Gross Profit Margin ▪ YoY : +31% in Gross Profit and +7% in Gross Profit Margin

Unit : THB mln

Remark: * Availability Factor = Total operating hours/(Days*24 hours) ** Capacity Factor = Electricity Unit sold /(Total operating hours*Total selling Capacity))

91% 93% 92% 94% 0% 20% 40% 60% 80% 100% 2017 2018 2019 Q1'2020 97% 98% 98% 98% 0% 20% 40% 60% 80% 100% 2017 2018 2019 Q1'2020 736 913 186 233 244 28.2% 35.1% 29.7% 35.3% 36.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 200 400 600 800 1,000 2018 2019 Q1'2019 Q4'2019 Q1'2020 Gross Profit % GPM

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ACE’s MSW Powerplant

MSW Khon Kaen

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ACE’s MSW Operating Performance

Plant Performance (1 Project) Gross Profit and Margin

Availability Factor Capacity Factor Key Observation

  • Gross Profit and Gross Profit Margin

▪ QoQ : +2% in Gross Profit and +2% in Gross Profit Margin ▪ YoY : +57% in Gross Profit and +17% in Gross Profit Margin from decrease in ash disposal fee (change to THB 560/ Ton from THB 580/ Ton since June 2019)

Unit : THB mln

85% 92% 95% 100% 0% 20% 40% 60% 80% 100% 2017 2018 2019 Q1'2020 92% 94% 96% 97% 0% 20% 40% 60% 80% 100% 2017 2018 2019 Q1'2020 114 136 28 43 44 43.3% 50.0% 43.7% 59.1% 61.1% 0% 10% 20% 30% 40% 50% 60% 70% 40 80 120 160 200 2018 2019 Q1'2019 Q4'2019 Q1'2020 Gross Profit % GPM 50.8%/1

Remark : /1 adjusted gross profit margin retrospectively from extended concession period

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ACE’s Co-generation Powerplant

AAA Chachoengsao

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ACE’s Co-Gen Operating Performance

Plant Performance (1 Project) Gross Profit and Margin

Availability Factor Capacity Factor Key Observation

  • Gross Profit and Gross Profit Margin

▪ QoQ : -5% in Gross Profit and stable Gross Profit Margin from minor overhaul for gas turbine in Q1’20 resulting in decrease of unit production and unit sold ▪ YoY : -1% in Gross Profit from minor overhaul for gas turbine in Q1’20 resulting in decrease of unit production and unit sold +2% in Gross Profit Margin from using Company staffs for operation and maintenance work instead of ESCO’s

  • utsourcing ( decrease in maintenance cost THB 11.2 mln and

increase in staff cost THB 1.0 mln) which results in cost saving

  • f THB 10.2 mln per quarter approximately.

Unit : THB mln

96% 98% 99% 96% 0% 20% 40% 60% 80% 100% 2017 2018 2019 Q1'2020 83% 80% 82% 74% 0% 20% 40% 60% 80% 100% 2017 2018 2019 Q1'2020 567 577 141 147 139 29.0% 27.9% 27.1% 29.1% 29.5% 15% 17% 19% 21% 23% 25% 27% 29% 31% 200 400 600 800 2018 2019 Q1'2019 Q4'2019 Q1'2020 Gross Profit % GPM

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Financial Highlights

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Strictly Private & Confidential

18 354 425 428 29.2% 34.2% 35.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 200 400 600 800 Q1'19 Q4'19 Q1'20 Gross Profit % GPM

1,213 1,243 1,217 14 6 173

200 400 600 800 1,000 1,200 1,400 1,600 Q1'19 Q4'19 Q1'20 Sales revenue Other revenue

Q1’20 Financial Highlight P&L

Revenue/1 Gross Profit and Margin

Total Revenue 1,227

Remark: 1/ Exclude construction revenue

1,249 1,390

+11% QoQ +13% YoY Revenue in Q1’20 was THB 1,390 mln

  • QoQ : +11% results from a significant increase in other income from

THB 6 mln to THB 173 mln., which outweighs a slight decrease in sales

  • YoY : +13% result from 1) significant increase in other income 173

mln 2) Biomass sales increase 46 mln and 3) Co-Gen sales decrease 52 mln from change in natural gas price and minor

  • verhaul in Q1’20

Unit : THB mln Unit : THB mln

Gross Profit in Q1’20 was THB 428 mln

  • QoQ : +1% from GP of Biomass increases by THB 11 mln

GP of MSW remains stable GP of Co-Gen decreases by THB 8 mln

  • YoY : +21% from GP of Biomass increases by THB 58 mln

GP of MSW increases by THB 16 mln GP of Co-Gen decreases by THB 2 mln Gross Profit Margin in Q1’20 was 35.2%

  • QoQ : +1% and YoY : +6% from increase in %GP of every power

plant type +21% YoY +1% QoQ

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Strictly Private & Confidential

4,833 4,951 1,213 1,243 1,217 16 33 14 6 173 1,000 2,000 3,000 4,000 5,000 2018 2019 Q1'2019 Q4'2019 Q1'2020 Sales Revenue Other Revenue

Financial Highlight – Revenue/1

Remark: 1/ Exclude construction revenue

Total Revenue 4,849 4,984 1,227 1,249 1,390

Unit : THB mln

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Strictly Private & Confidential

Financial Highlight - Gross Profit

1,417 1,626 354 425 428

29.3% 32.8% 29.2% 34.2% 35.3%

0% 10% 20% 30% 40%

500 1,000 1,500 2,000

2018 2019 Q1'2019 Q4'2019 Q1'2020

Gross Profit % GPM Unit : THB mln

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Q1’20 Financial Highlight P&L

Core Profit/ Net Profit

133 245 594

+61% YoY

Unit : THB mln

Core Profit in Q1’20 was THB 260 mln

  • QoQ : +5% from an operating cost improvement despite a slight

decrease in sales from Co-gen of 30 mln

  • YoY : +61% from increase in sales from improving of production

efficiency and decrease in fuel cost from improvement of fuel material management and production process Net Profit in Q1’20 was THB 594 mln

  • QoQ : +142% mainly from FX gain 112 mln, Gain from forward

contract 50 mln and insurance claim of 172 mln totaling 334 mln

EBITDA and EBITDA Margin

Unit : THB mln

EBITDA in Q1’20 was THB 656 mln

  • QoQ : +37% and YoY : +58% from EBIT margin improvement

where significant increase came from insurance claim 172 mln +5% QoQ +58% YoY +37% QoQ

Net Profit 161 248 260 (28) (19) 112 50 172 16 13.3% 20.0% 21.4% 10.9% 19.7% 48.8%

  • 5.0%

5.0% 15.0% 25.0% 35.0% 45.0% 55.0%

  • 100
  • 100

200 300 400 500 600 700 Q1'19 Q4'19 Q1'20 Core profit FX Gain/(loss) Gain from Forward contract Insurance claim Reverse Impairment Core margin Net margin 414 479 484 172 34.1% 38.5% 53.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

  • 100

200 300 400 500 600 700 800 900 1,000 Q1'19 Q4'19 Q1'20 EBITDA Insurance Claim Margin 39.8% ( without Insurance Claim )

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Financial Highlight – Net Profit / Core Profit / Core Profit Margin

Net Profit

547 815 133 245 594

Unit : THB mln

557 901 161 248 260 (10) (102) (28) (19) 112

50 172

16 16 11.5% 18.2% 13.3% 20.0% 21.4%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

  • 200
  • 200

400 600 800 1,000 2018 2019 Q1'2019 Q4'2019 Q1'2020 Core profit FX Gain/(loss) Gain form Forward contract Insurance claim Reverse Impairment Core margin

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Strictly Private & Confidential

Financial Highlight - EBITDA

Unit : THB mln

1,635 1,865 414 479 484 172 33.8% 37.7% 34.1% 38.5% 53.9%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2018 2019 Q1'2019 Q4'2019 Q1'2020 EBITDA Insurance Claim Margin

( without Insurance Claim )

39.8% Core EBITDA Margin

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Strictly Private & Confidential

ACE Outstanding Debt and Leverage Ratio

ACE’s Leverage Ratio

Unit: THB mln December 31 March 31 2017 2018 2019 Q1’20 Current Interest-bearing debt 3,328 1,166 1,084 700 Non-Current Interest-bearing debt 5,197 6,632 1,911 1,933 Total interest-bearing debt 8,525 7,798 2,995 2,633 Equity (THB mln) 5,022 5,572 10,793 11,387 Unit : THB mln

5,022 5,572 10,793 11,387 1.7x 1.4x 0.3x 0.2x 0.0x 0.3x 0.6x 0.9x 1.2x 1.5x 1.8x 3,000 6,000 9,000 12,000 15,000 2017 2018 2019 Q1'20 Equity IBD/Equity

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Key Competitive Advantages of ACE to Win The Bidding

2 Operational Expertise &

Economy of Scale

✓ Lower plant heat rate = less fuel consumption by up to 30% ✓ Artificial Intelligence, IoTs and Big data for cost control and improvement ✓ Environmental friendly ✓ Proven track record in building and running 13 projects ✓ Continuous operational improvement ✓ Economy of scale ✓ Strong feedstock purchasing team

1

Advance Technology

3

Relationship with Key Stakeholder

✓ Major shareholders’ plantation business can support long-term feedstock development plan ✓ Strong & long-term relationship with community and farmers ✓ Strong relationship with lender

ACE’s 3 Core Value Represent Competitive Advantage to Secure New PPAs

R&D Sustainability

✓ Potential Fuel Crops from Major Shareholders’ plantation business ✓ New Biomass Fuel Types ✓ Machinery and Powerplant Design ✓ Feed stock security ✓ Financial security ✓ Community support

Knowhow

✓ Low O&M cost ✓ Big & strong Professional Teams get ready to handle New Projects.

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Strictly Private & Confidential

ACE’s Key Strengths and Opportunities

2 3

Efficient Operational Capabilities with Continuous Improvement

▪ Lower Feedstock and O&M cost which leads to higher margin ▪ Stronger creditworthiness which leads to lower financing cost ▪ Peer-to-Peer Electricity Trading which leads to additional electricity sales

Low Downside Risk

▪ Secured Demand & Cashflow ▪ Proven Operational Excellence & Feedstock Management ▪ Commitment to the greater good i.e., ESG and TSI (Total Societal Impact)

Continuous Growth from Projects in the Pipeline and Future

▪ VSPP’s PPA with exceptional tariff rate ▪ Better technology which leads to higher efficiency and less feedstock / kWh ▪ Economy of Scale from lower CAPEX, OPEX, and SG&A ▪ Appreciation of THB potentially leads to lower CAPEX ▪ 28% share in the latest biomass bidding

5

World Megatrend

▪ “Electrification” Era ▪ Global & Thailand Commitment to Zero Carbon which implies the rise of renewable energy ▪ Biomass becomes one of the most reliable renewable energy ▪ ESG Business

1

Thailand’s Leading Integrated Power Producer with Highest Growth Potential

▪ Largest biomass Power Producer supported by PPA with PEA in Thailand ▪

  • No. 1 Renewable Power Producer in Thailand in term of Equity MW Growth

4

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Strictly Private & Confidential

Total Societal Impact(TSI) and Environmental, Social and Governance (ESG)

Biomass Powerplant MSW Powerplant

Contribute to the Paris Agreement Decreasing Greenhouse Gas Emission. Future Potential To provide base-load to grid instead of conventional energy

  • Saves government’s spending on putting down forest fires and farm fires
  • Saves government’s spending on PM 2.5 related health problems such as respiratory

complications, masks distributions, water spraying in cities, etc.

  • Prevents economic loss from the decrease in tourism due to PM 2.5 problem

Solves PM 2.5 problem at the root

  • Additional income to farmers
  • Stabilize income for farmers under market uncertainty → reduce empty subsidies that government

have to give out

  • Stabilize electricity price preventing electricity price from increasing in the future
  • Distribution of revenue to grassroots : Shift from expensive LNG imports to purchasing fuel from

Thai farmers Positive Economic and Societal Impact GDP Contribution/1 1.8 Billion THB / year / 9.9 MW biomass power plant

Source: Thailand Energy Academy

Contribute to the Paris Agreement decreasing Greenhouse Gas Emission. Future Potential To provide base-load to grid instead of conventional energy Solves MSW mountain problems Save healthcare and environmental spending for government from problems caused by MSW in landfills

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Thank You