Analyst Meeting Q3 2017 Results 17 November 2017 For Q2 2017 - - PowerPoint PPT Presentation

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Analyst Meeting Q3 2017 Results 17 November 2017 For Q2 2017 - - PowerPoint PPT Presentation

Analyst Meeting Q3 2017 Results 17 November 2017 For Q2 2017 Results Disclaimer The information contained in this presentation is strictly confidential and is provided by BCPG Public Company Limited (the "Company") to you solely for


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For Q2 2017 Results

Analyst Meeting

Q3 2017 Results 17 November 2017

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Disclaimer

The information contained in this presentation is strictly confidential and is provided by BCPG Public Company Limited (the "Company") to you solely for your information. 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 or 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 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

  • r 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 change without notice, 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

  • therwise) 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 part of any offer or invitation 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 jurisdiction. 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. 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 update the information contained in this presentation or to correct any inaccuracies herein which may become apparent.

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Agenda Key Highlights Financial Highlights Going Forward

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Agenda Key Highlights Financial Highlights Going Forward

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JA JAPAN AN

Q3 17 Key Highlights

Signed ed contr trac act t with the e War Vete teran ans s Organiza anizatio tion n of Thailand iland to construct nstruct sol

  • lar

ar power wer plants nts 8.94 MW MW Plan n to CoD in Jun 2018 Annou

  • unc

nced ed collab llaboration

  • ration

with Sansiri iri Pcl for Smart rt Green en Ener ergy gy Community munity Starte rted d const structio ruction for Gotemba temba proje

  • ject

ct (4.4 MW DC

DC)

Plan n to CoD in Dec c 2017 Start rt Construction nstruction of Koma maga gane Proje

  • ject

ct (32.2 MW DC) Natu tural al Freak eak Recog cogniz ized d shares res of profi fit t worth th THB B 363 363 millio ion from m investme estment nt in Geot

  • ther

hermal mal in Indo done nesia sia

THAI AILAN LAND PHIL ILIP IPPIN PINES ES IN INDO DONES NESIA IA

118 118 130 130 130 130 130 130 19.5 30 30 30 30 34 34 14.4 14.4 14.4 158 158.0 .0 Q3 2016 Q2 2017 Q3 2017 Q4 2017

Operatin erating g Capac pacity ity

Thailand Japan Philippines Indonesia

137.5 174.4

158.0

336.4 332.4

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Awards and Recognitions

Received “Renewable Ener ergy gy De Deal l of the e Year” Award

FTSE SE SET T Shari riah ah Inde ndex

Included in MSCI CI Gl Global l Small ll Cap In Index ex and FTSE E SET T Sharia riah In Index ex Included in SET10 100 for the first time Awarded “Be Best st Re Renewab ewable le Ener ergy gy Compa mpany ny - Thailand 2017” and “Be Best st Corpo porat rate e Go Gover ernan nance ce Principles ples Re Renewabl ewable e Energy gy Compa mpany ny - Sout uth h East t As Asia a 20 2017 17” Nomin minee ees s for SET Award d 2017 “Best Deal of th the e Yea ear Awards”

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Agenda Key Highlights Financial Highlights Going Forward

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0.00 2.50 5.00 7.50 10.00 12.50 1,000 2,000 3,000 4,000 5,000 6,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electri ctricity city sold

Our Operat rations

  • ns in Japan

pan (2016 vs. . 2017)

Irra radi diat atio ion M kWh

ectricity Generation & Tariff

0.00 2.50 5.00 7.50 10.00 12.50 5,000 10,000 15,000 20,000 25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electr ctrici icity ty sold

Our Operat rations

  • ns in Thailan

iland d (2016 vs. 2017)

Irra radi diat atio ion M kWh

2016 2017 2016 2017

40 38.6 38.6 Q3 2016 Q2 2017 Q3 2017 Effective price - Japan JPY/kWh 11.34 11.02 11.19 Q3 2016 Q2 2017 Q3 2017 Effective price - Thailand THB/kWh

Hours/day Hours/day

Seasonality Effect to Operation

2017 2016 2017 2016

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First Recognition from Investment in Geothermal Power Plant

High gher r revenue ue from operatio ration from new plan lant t in Thailan ailand d and Japa pan Realiz alized d profit it sharin ring g from asso ssoci ciates ates since Q2 2017 2017

680 719 704 2,138 2,139 105 171 150 190 403 43 359 402

785 785 933 933 1,213 13 2,327 27 2,944 44

Q3 2016 Q2 2017 Q3 2017 9M 2016 9M 2017 Thailand Japan Profit Sharing

Income by Geogra raphy

118.0 130.0 19.5 30.0 14.4 158.0

137.5 .5 332.4 .4

Q3 2016 Q3 2017

Instal talled ed Capac pacity ity (MW) W)

Thailand Japan Philippines Indonesia Total

Unit: THB million

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SLIDE 10

QoQ +55 55.9% .9%

Group Performance – Q3 2017

Net profit from operation (excluded other income and FX) sharply increased from Geothermal investment

YoY +82.7 82.7%

Unit: THB million

785 890 854 593 637 609 371 435 678 360 462 514

Q3 2016 Q2 2017 Q3 2017 Sales EBITDA Net profit before other revenue and FX Net Profit

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Group Performance – 9M 2017

Net profit (excluded other income and FX) sharply increased from profit sharing from associates (geothermal)

YoY +42.1 42.1%

Unit: THB million

YoY +0. 0.2%

2,327 2,541 1,724 1,868 1,061 1,507 1,428 1,430

9M 2016 9M 2017 Sales EBITDA Net profit before other income and FX Net Profit

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1,428 1,430 Net profit 9M 2017 Net profit 9 M 2016

Strong Growth in Core Profit – 9M 2017

Unit: THB million

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1,428 1,068 1,430 227 133 Net profit 9M 2017 Net profit 9 M 2016 Gain from Bargaining Gain on FX Core profit 9 M 2016

Strong Growth in Core Profit – 9M 2017

Unit: THB million

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1,428 1,068 1,512 1,430 227 61 140 133 21 304 Net profit 9M 2017 Core profit 9 M 2017 Gain on FX Reversal of provision (negotiation with SunEdison) Loss on FX from Forward contract Sale of asset (Suimei sales) Net profit 9 M 2016 Gain from Bargaining Gain on FX Core profit 9 M 2016

Strong Growth in Core Profit – 9M 2017

Unit: THB million

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Improving Net Profit Margin

Earn rning ing per Share

72.5% 72.2% 71.3% 76.4% 71.6% 71.3% 47.5% 64.8% 79.5% 45.9% 52.0% 60.1%

Q3 2016 Q2 2017 Q3 2017 Gross Profit Margin EBITDA Margin Profit Margin (before FX) Profit Margin (after FX)

Profita itability bility (%)

0.25 0.23 0.26

Q3 2016 Q2 2017 Q3 2017

Unit: THB/Share

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SLIDE 16

14,195 13,879 8,061 2,651 13,226 3,233 2,856 13,517 14,089 1,911 743 10,060 17,780 A L + E A L + E PPE Cash and Cash Equivalent Investment in associates Other Assets Equity Other Liabilities Long-Term Loan Unit: THB million 2016 Q3 2017

25,489 32,612

Financial Position

As at Q3 2017, total assets increased THB 7,226 million or 28.2% due mainly to an increase in investments in associates Total Debt/Equity and Net IBD/Equity at 1.31x and 1.26x as at the end of Q3 2017

Capital structure

0.89 1.31 Debt to Equity (x)

2016 Q3 2016

Covenant : D/E ratio ≤ 3x Debt Capacity : 42,267 MTHB Outstanding Debt : 17,780 MTHB

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SLIDE 17

No. Project ect % of Inve vestment tment Loca cati tion Irrad adiat ation (kWh/m2/year) year) Insta tall lled ed Capac pacity ty (MW) Contrac tracte ted d Capac pacity ty (MW) Feed-in Tariff (FiT) (JPY/kW kWh) PPA A Period d (Year) ear) Off Taker Status tus

Operation tion

1 S1

(Natkatsugawa)

100.0 Kagoshima, Japan 1,405 0.9 0.7 40 20 Kyushu Electric Power Company COD 15/08/14 2 S11 (Takamori ) 100.0 Kumamoto, Japan 1,376 1.3 1.0 40 20 COD 16/02/15 3 S19 (Nojiri) 100.0 Miyazaki, Japan 1,433 1.1 0.9 40 20 COD 24/02/15 4 Tarumizu 100.0 Kagoshima, Japan 1,369 9.7 8.1 40 20 COD 31/08/15 5 Nikaho 100.0 Akita, Japan 1,136 13.2 8.8 40 20 Tohoku Electric Power Company COD 15/07/16 6 Nagi 100.0 Okayama, Japan 1,329 14.4 10.5 36 20 Chugoku Electric Power Company COD 02/03/17

Develop velopin ing

7 Gotemba 100.0 Shizuoka, Japan 1,291 4.4 4.0 32 20 Tokyo Electric Power Company Expect to COD within Dec 17 8 Komagane 100.0 Nagano, Japan 1,472 32.2 25.0 36 20 Chubu Electric Power Company To Sign EPC within 4Q17 9 Yabuki 100.0 Fukushima, Japan 1,294 27.9 20.0 36 20 Tohoku Electric Power Company Expect to COD within 4Q18 10 Chiba 1 100.0 Chiba, Japan 1,362 24.0 20.0 36 20 Tokyo Electric Power Company Expect to COD within 4Q18 11 Chiba 2 100.0 Chiba, Japan 1,362 12.0 10.0 32 20 Tokyo Electric Power Company Expect to COD within 1Q19

Under der devel elop

  • pmen

ment

12 Isakida 100.0 Kagoshima, Japan 1,463 4.4 3.5 36 20 13 Shimoyunohira 100.0 Oita, Japan 1,330 9.6 8.0 36 20 14 S5 100.0 Kagoshima, Japan 1,371 7.2 6.0 36 20

Project Pipeline in Japan

Oper erat ating ing and Fut utur ure e Project ect Portfolio lio in Ja Japan

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Project Pipeline in Japan

Go Gotem emba : Un Under er const stru ruction ction

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Project Pipeline in Japan

Go Gotem emba : Un Under er const stru ruction ction

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Project Pipeline in Japan

Go Gotem emba : Under construction and plan to COD in Dec’17

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Project Pipeline in Japan

Go Gotem emba : Un Under er const stru ruction ction

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Capex in pipeline

Tot

  • tal

al Capex ex in Pipe pelin line e c. THB B 10,000

000 million

ion Compe petitive itive proje

  • ject

ct finance ce offerin ering

338 3,394 3,406 2,956

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000

2018 2019 2020 Thailand Japan

Capex in pipeline

Unit: THB million

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Agenda Key Highlights Financial Highlights Going Forward

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Smart Green Energy Community

“The New Experience for Your Energy Life”

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Creating Green Community:

Green Energy Sharing Eco-system

Solar Rooftop for Own Use & Other Sources of Renewable Expand to Residential & Community Using Blockchain for Energy Trading System

Distri tributed buted Gen ener eration ion (DG) ) & M & Micro ro Grid is One e of f To Top 10 0 Tr Tren ends ds

transf sfor

  • rmi

ming g the e el elec ectric tric power er sec ector

  • r
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SLIDE 26

Smart City and Smart Grid are Coming

Source: Frost & Sullivan

Global Market Value:

$1,600,000 mil

($ 1.6 Trillion)

Smart Energy is

15.8%

  • f total market value
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“Smart Green Energy Community”

Collaboration with Sansiri

MOU U sign gned ed in Octobe tober r 2017 to initiat iate Thailand’s First rst Smart rt Green n Energy gy Commun unity ity with ith > 20 Sans nsiri iri Pr Projects

  • jects in

n Pi Pipeli line

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28

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Our Investment in the Philippines

PHIL ILIP IPPINES PINES

Nabas 36 MW + 14 MW

  • Generation between Jan to Jul has

been higher than 2016

  • However in August (typhoon season),

wind was abnormally low, 50% of expected

  • Total output YTD is 6% lower than those
  • f 2016

20 40 60 80 100 120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Accumulated Generation (GWh)

77.6 72.6

20 40 60 80 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017

Capacity Factor (%)

2 4 6 8 10 12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2011 2012 2013 Average

Average Wind Speed (m/s)

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IN INDO DONES NESIA IA

Our Investment in Indonesia

Darajat 47 MW

(271 MW)

Salak 65 MW

(377 MW)

Wayang Windu 45 MW + 24 MW

(227 MW + 120 MW) Java

Q3 2017 2017 First rst recogn gnize zed d share are of profit fit from Star r Energy gy Group up Hold ldings ngs Pte.Ltd .Ltd.

  • Wayang

Wayang Wind ndu from

  • m Jan

n 2017

  • Salak

alak and Darajat rajat from Apr r 2017

  • Acquisition

cquisition Cost t

  • Finan

inanci cial al Cost st concerning ning acqu quisi isition tion

85% 90% 95% 100% Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17

WW1 WW2 Salak Darajat