Absolute Clean Energy Public Company Limited Analyst Meeting Q32019 - - PowerPoint PPT Presentation

absolute clean energy public company limited
SMART_READER_LITE
LIVE PREVIEW

Absolute Clean Energy Public Company Limited Analyst Meeting Q32019 - - PowerPoint PPT Presentation

Absolute Clean Energy Public Company Limited Analyst Meeting Q32019 Disclaimer The information contained in this presentation is strictly confidential and is provided by Absolute Clean Energy Public Company Limited (the "Company") to


slide-1
SLIDE 1

Absolute Clean Energy Public Company Limited

Analyst Meeting Q3’2019

slide-2
SLIDE 2

2

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

slide-3
SLIDE 3

3

Strictly Private & Confidential

Operating performance Financial Highlights Business Updates I III

Table of Contents for Analyst Presentation

II

slide-4
SLIDE 4

Business Updates

slide-5
SLIDE 5

Strictly Private & Confidential

5

Q3’19 Key Highlights : Key Events in Q3’19 + Events after the reporting date

Project COD Acquisition

  • September 2019: COD 1 Solar rooftop project 1 MW
  • October 2019: ACE EGM’s approval for the acquisition of

the shares of Advance Power Plant Company Limited (“APP”)

  • October 2019: ABA BOD’s approval for prepayment of ABA project loan
  • November 2019: Confirmation from SCB to decrease interest rates of project loans effective from 29 October 2019 ;

1) Biomass and MSW, decrease interest rates to MLR-2.50% per annum for the first 2 years, and MLR-1.75% per annum henceforth 2) Natural Gas Power Plant, decrease interest rates to MLR-2.00% per annum for the first 2 years, and MLR-1.50% per annum henceforth

  • November 2019: Notice from ACE to debentures holders for early redemption of the debentures

Capital Structure

slide-6
SLIDE 6

Strictly Private & Confidential

6

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 3+3

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

89.1 201.9 114.35 2.73 2.29 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

2.73 2.29

COD: 212.18 Pipeline: 209.19 Total: 421.37 COD: 14 Pipeline: 19/1 Total: 33/1 COD: 169.23 Pipeline: 171.00 Total: 340.23

slide-7
SLIDE 7

Strictly Private & Confidential

7 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. 17, 18
  • SPP – Hybrid

Srisaket:

  • No. 26

Supanburi:

  • No. 19

Nakornpathom:

  • No. 20

Amnatcharoen:

  • No. 23

Lopburi:

  • No. 24

Krabi:

  • No. 16

Pracheenburi:

  • No. 25

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 18 November 2019 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, 22, 27

Samut Sakhon:

  • No.28

Nakhon Ratchasima:

  • No. 4, 13 ,21,29 and 30

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

  • f Administrative

Court 27 VSPP – Biomass/1 9.9 8 Chonburi Within 2022 Under negotiation SCOD/2 28 1 Solar Rooftop 0.83 Samut Sakhon 2020 Under construction 29 1 Solar farm 0.77 Nakhon Ratchasima 2020 Under construction 30 1 Solar farm 0.69 Nakhon Ratchasima 2020 Under construction Total Projects 421.37 335.21 Under negotiation SCOD/2 Existing Projects (14 Projects) Under Development and pending for development (19 projects) COD

2 1

slide-8
SLIDE 8

Strictly Private & Confidential

8

Q3’19 Key Highlights : Project Updates

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 Approval Process 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% 2020 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 Under construction Solar farm Nakhon Ratchasima ACE Solar 6 0.77 0.77 100.00% 2020 Under construction N/A Solar farm Nakhon Ratchasima ACE Solar 7 0.69 0.69 100.00% 2020 Under construction N/A Total 209.19 171.00 17% 5% Remark: /1 Including APP’s capacity MW of 9.9. Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE

slide-9
SLIDE 9

Strictly Private & Confidential

9

1,236 1,249 1,246 8 11 2

  • 200

400 600 800 1,000 1,200 1,400 Q3'18 Q2'19 Q3'19 Sales revenue Other revenue

Q3’19 Financial Highlight P&L

Revenue/1 Gross Profit and Margin

Total Revenue 1,244

Remark: 1/ Exclude construction revenue

1,260 1,248

  • 1% QoQ

+1% YoY Revenue in Q3’19 was THB 1,248 mln

  • QoQ : -1% from other income decrease from THB 11 mln to THB 2
  • mln. No significant change in sales
  • YoY : +1% No significant change in sales and other income

Unit : THB mln Unit : THB mln

Gross Profit in Q3’19 was THB 426 mln

  • QoQ : +1% from GP of Biomass increase THB 7 mln

GP of MSW decrease THB 5 mln GP of Co-Gen increase THB 4 mln

  • YoY : +24% from increase in GP of Biomass of THB 82 mln

GP of MSW increase THB 4 mln GP of Co-Gen decrease THB 4 mln Gross Profit Margin in Q3’19 was 34.2%

  • QoQ : +1% from increase in %GP of Biomass and Co-Gen
  • YoY : +6% mainly from increase in %GP of Biomass

344 420 426 27.8% 33.6% 34.2%

  • 100

200 300 400 500 600 700 800 900 1,000 Q3'18 Q2'19 Q3'19 Gross Profit % Gross Profit

+1% QoQ +24% YoY

slide-10
SLIDE 10

Strictly Private & Confidential

10

Q3’19 Financial Highlight P&L

Core Profit/ Net Profit

Net Profit 112 209 228

  • 9% QoQ

+61% YoY

Unit : THB mln

Core Profit in Q3’19 was THB 235 mln

  • QoQ : -9% from decrease in other income THB 9 mln and realized

THB 8.5 mln of one-time fee from early termination of operation and maintenance contract of Co-Gen which will reduce future cost

  • 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 Q3’19 was THB 228 mln

  • QoQ : +9% from decrease in unrealized loss on exchange rate of

receivable under finance lease

EBITDA and EBITDA Margin

Unit : THB mln

EBITDA in Q3’19 was THB 479 mln

  • QoQ : -3% from decrease in EBIT
  • YoY : +21% from increase in EBIT

397 493 479 32.1% 39.5% 38.5%

  • 100

200 300 400 500 600 700 800 900 1,000 Q3'18 Q2'19 Q3'19 EBITDA %EBITDA

  • 3% QoQ

+21% YoY

146 257 235

  • 34
  • 48
  • 7

9.0% 16.8% 18.3% 11.8% 20.6% 18.9%

  • 100
  • 50
  • 50

100 150 200 250 300 Q3'18 Q2'19 Q3'19 Core Profit Fx Gain/(Loss) %Net Profit %Core Profit

slide-11
SLIDE 11

Operating Performance

slide-12
SLIDE 12

12

Strictly Private & Confidential

ACE’s Biomass Powerplant

ACP1 Ban Bueng ACP2 Ponthong ACP3 Bo Ploy ABA1 Thern ALCP1 Sri Chiang Mai ALCP2 Sirinthorn AAPP2 Chokchai AAPP1 Tanee AAP1 Nam Pong

slide-13
SLIDE 13

13

Strictly Private & Confidential

ACE’s Biomass Operating Performance

Plant Performance (9 Projects) Gross Profit and Margin

Availability Factor* Capacity Factor**

91% 93% 92% 92% 0% 20% 40% 60% 80% 100% 2017 2018 9M2019 Q3'2019 97% 98% 98% 98% 0% 20% 40% 60% 80% 100% 2017 2018 9M2019 Q3'2019 555 736 168 243 250 536 679 23.6% 28.2% 25.2% 36.9% 38.0% 27.7% 35.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

  • 100

200 300 400 500 600 700 800 2017 2018 Q3'2018 Q2'2019 Q3'2019 9M2018 9M2019 Gross profit Gross profit margin

Key Observation

  • Gross Profit and Gross Profit Margin
  • QoQ : +3% in Gross Profit and +1% in Gross Profit Margin
  • YoY : +49% in Gross Profit and +13% in Gross Profit Margin

Unit : THB mln Unit : (%)

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

slide-14
SLIDE 14

14

Strictly Private & Confidential

ACE’s MSW Powerplant

MSW Khon Kaen

slide-15
SLIDE 15

15

Strictly Private & Confidential

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 : -14% in Gross Profit and -4% in Gross Profit Margin

from annual maintenance shutdown in Q3’2019 totaling 196 hrs

  • YoY : +11% in Gross Profit and +5% in Gross Profit Margin

from decrease in ash disposal fee (change to THB 580/ Ton with delivery fee THB 5k/ Time from THB 700/ Ton with delivery fee THB 15k-18k/ Time since Oct 2018)

Unit : THB mln Unit : (%) 82 114 27 35 30 86 93 36.4% 43.3% 40.7% 50.2% 45.7% 43.2% 46.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

  • 20

40 60 80 100 120 2017 2018 Q3'2018 Q2'2019 Q3'2019 9M2018 9M2019 Gross profit Gross profit margin 85% 92% 93% 90% 0% 20% 40% 60% 80% 100% 2017 2018 9M2019 Q3'2019 92% 94% 95% 96% 0% 20% 40% 60% 80% 100% 2017 2018 9M2019 Q3'2019

slide-16
SLIDE 16

16

Strictly Private & Confidential

ACE’s Co-generation Powerplant

AAA Chachoengsao

slide-17
SLIDE 17

17

Strictly Private & Confidential

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 : +3% in Gross Profit and +1% in Gross Profit Margin

from improvement of plant heat rate result in lower gas consumption

  • YoY : -3% in Gross Profit and -2% in Gross Profit Margin

from decrease in revenue from finance lease THB 4 mln from depreciated in US dollar

Unit : THB mln Unit : (%) 484 567 150 142 146 421 430 29% 29% 30% 27% 28% 29% 28% 10% 15% 20% 25% 30% 35%

  • 100

200 300 400 500 600 2017 2018 Q3'2018 Q2'2019 Q3'2019 9M2018 9M2019 Gross profit Gross profit margin 96% 98% 100% 99% 0% 20% 40% 60% 80% 100% 2017 2018 9M2019 Q3'2019 83% 80% 82% 82% 0% 20% 40% 60% 80% 100% 2017 2018 9M2019 Q3'2019

slide-18
SLIDE 18

Financial Highlights

slide-19
SLIDE 19

19

Strictly Private & Confidential 4,243 4,833 1,236 1,249 1,246 3,572 3,707 103 16 8 11 2 15 27

  • 1,000

2,000 3,000 4,000 5,000 6,000 2017 2018 Q3'2018 Q2'2019 Q3'2019 9M2018 9M2019 Sales Revenue Other Revenue

Financial Highlight – Revenue/1

Remark: 1/ Exclude construction revenue

Revenue in Q3’19 was THB 1,248 mln

  • QoQ : -1% from other income

decrease from THB 11 mln to THB 2

  • mln. No significant change in sales
  • YoY : +1% No significant change in

sales and other income

Unit : THB mln Total Revenue 4,346 4,849 1,244 1,260 1,248 3,587 3,734

slide-20
SLIDE 20

20

Strictly Private & Confidential

Financial Highlight - Gross Profit

1,121 1,417 344 420 426 1,043 1,201 26.4% 29.3% 27.8% 33.6% 34.2% 29.2% 32.4%

  • 200

400 600 800 1,000 1,200 1,400 2017 2018 Q3'18 Q2'19 Q3'19 9M18 9M19 Gross Profit % Gross Profit

Unit: THB mln

slide-21
SLIDE 21

21

Strictly Private & Confidential

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

slide-22
SLIDE 22

22

Strictly Private & Confidential

Financial Highlight - EBITDA

Unit: THB mln

1,472 1,635 397 493 479 1,222 1,386 34.7% 33.8% 32.1% 39.5% 38.5% 34.2% 37.4%

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2017 2018 Q3'18 Q2'19 Q3'19 9M18 9M19 EBITDA %EBITDA

slide-23
SLIDE 23

23

Strictly Private & Confidential

ACE Outstanding Debt and Leverage Ratio

ACE’s Leverage Ratio

Unit: THB mln December 31 September 30 Post-IPO (Pro Forma) 2016 2017 2018 3Q19 3Q19+IPO Proceed Current Interest-bearing debt 2,633 3,328 1,166 2,669 2,699 Non-Current Interest-bearing debt 5,825 5,197 6,632 4,658 4,658 Total interest-bearing debt 8,458 8,525 7,798 7,327 7,327 Equity (THB mln) 4,614 5,022 5,572 6,142 10,542 Unit : THB mln 4,614 5,022 5,572 5,449 6,142 10,542 1.8x 1.7x 1.4x 1.5x 1.2x .7x

.x .2x .4x .6x .8x 1.x 1.2x 1.4x 1.6x 1.8x
  • 2,000
4,000 6,000 8,000 10,000 12,000

2016 2017 2018 9M18 9M19 9M19+IPO Equity Total IBD/Equity

slide-24
SLIDE 24

Thank You