SLIDE 1
BGRIM: Investor Presentation for Q1’2019
May 2019
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
1
Agenda
1
BGRIM: Investor Presentation for Q12019 May 2019 Agenda 4 - - PowerPoint PPT Presentation
BGRIM: Investor Presentation for Q12019 May 2019 Agenda 4 - - PowerPoint PPT Presentation
BGRIM: Investor Presentation for Q12019 May 2019 Agenda 4 HIGHLIGHTS BGRIM UPDATE Q12019 OPERATING RESULTS Q 12019 BGRIM INVESTOR PRESENTATION Q32018 UPDATE Q32018 OPERATING RESULT BGRIM OVERVIEW 1 1
SLIDE 2
SLIDE 3
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
2
กรอบระยะเวลาด าเนินการของ SPP Replacement Scheme
Application submission
24 ม.ค. 2 พ.ค. 16-17 พ.ค. กฟผ. จะมีหนังสือ ตอบรับซื้อไฟฟ้าและ แจ้งผลการพิจารณา ต่อกกพ. และผู้ยื่น ขอผลิตไฟฟ้าเอกชน รายเล็ก*
ภายใน ส.ค.
2562 กพช. อนุมัติการต่อ อายุสัญญาโรงไฟฟ้า ผู้ผลิตไฟฟ้าเอกชนราย เล็ก (SPP) และการ ก่อสร้างโรงไฟฟ้าใหม่ ทดแทนโรงไฟฟ้าเดิม กกพ. ประกาศเชิญชวน การรับซื้อไฟฟ้าจากผู้ผลิต ไฟฟ้าเอกชนรายเล็ก ประเภท Firm ระบบ Cogeneration ที่จะสิ้นสุด อายุสัญญาในปี 2562-2568 (ก่อสร้างโรงไฟฟ้าใหม่)* บี.กริม เพาเวอร์ ยื่นค าเสนอขอ ขายไฟฟ้าต่อ กฟผ. จ านวนทั้งสิ้น 5 โรง
*อ้างอิงจาก: ประกาศคณะกรรมการก ากับกิจการพลังงาน (ลงวันที่ 2 พ.ค. 2562)
SLIDE 4
BGRIM INVESTOR PRESENTATION Q1’2019 3
Q3’2018 UPDATE Q3’2018 UPDATE
*For PPAs expired in 2019 - 2021
Key consideration
EGAT PPA period (years) EGAT contract capacity (MW) EGAT Tariff IU Tariff Contracted heat rate (mmBTU/KWh) BGRIM’s power plants applied with this scheme
Replacement
25 Up to 30 Capacity Payment + Energy Payment Benchmark with PEA 7,409 ABP1, ABP2, BPLC1, SPP1 (2 plants)
Extension*
1-3 Up to 60 Energy Payment Benchmark with PEA 8,282 ABP1, SPP1 (2 plants)
Existing
21-25 Up to 90 Capacity Payment + Energy Payment Benchmark with PEA 8,600 ABP1, ABP2, BPLC1, SPP1 (2 plants)
SPP Extension and Replacement Scheme
ABP1 2019 2020 2021 2022 2023 2024 ABP2 BPLC1 SPP1 #1 SPP1 #2
166 MW, (15.3% holding) 166 MW, (51.2% holding) 140-150 MW, (51.2% holding), 25 years 140-150 MW, (51.2% holding), 25 years 140-150 MW, (100.0% holding), 25 years 171 MW, (15.3% holding) 103 MW, (100.0% holding) 62 MW, (100.0% holding) 62 MW, (100.0% holding) 62 MW, (100.0%) 62 MW, (100.0%) 70-140 MW, (100.0% holding), 25 years 70-140 MW, (100.0% holding), 25 years
SLIDE 5
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
4
BGRIM OVERVIEW Q3’2018 UPDATE
Vietnam solar projects are on track with SCOD in June 2019
Dau Tieng Tay Ninh Energy Solar Plant Project (Xuan Cau)
Progress: Finished transmission line and commissioning.
Phu Yen TTP Solar Plant Project (Phu Yen)
Type of Fuel: Solar PV Capacity: Installed - up to 257 MW dc Contract - up to 214 MW ac Economic Ownership: 80% EVN PPA : 214 MW / 20 years Progress: Finished transmission line and on process of commissioning process.
2019 Timeline
June 5 May 6
Target COD DT1 (180 MWdc)
Type of Fuel: Solar PV Capacity: Installed - up to 420 MW dc Contract - up to 350 MW ac Economic Ownership: 55% EVN PPA : 350 MW / 20 years
June 15-20
Target COD DT2 (240 MWdc) Commissioning DT1 Commissioning DT2
May 12
Commissioning Phuyen TTP
May 15
Target COD Phuyen TTP (257 MWdc)
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Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
5
BGRIM OVERVIEW Q3’2018 UPDATE
DT1&2 and Phuyen TTP Vietnam Solar Projects
DT1&2 Phuyen TTP
SLIDE 7
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
6
BGRIM OVERVIEW Q3’2018 UPDATE
MOU signing with LG Chem (May 14, 2019)
Cooperation with LG Chem, world leader in fields of energy storage system (ESS), automotive batteries and mobile batteries, for the development in energy storage system.
MOU signing with Siemens and TPSC (Mar 23, 2019)
Service Collaborations to improve 9 power plants performance for increasing the availability and efficiency as well as introducing digitalization to their operation and maintenance.
MOU Signing with Strong Partners
SLIDE 8
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
7
BGRIM OVERVIEW Q3’2018 UPDATE
BGRIM 2019 activities
Q1
✓ Ft increased
from Jan 2019
✓ Synchronized
additional 3 IU MW to ABPR5 in Feb
✓ Successful Glow
SPP1 acquisition 124 MW
✓ MOU signing
with Siemens and TPSC
✓ MOU signing
with LG Chem
✓ Synchronized
additional 10 IU MW to ABPR4 in April
✓ Additional
refinancing
- pportunity of
~ THB 2.2 Bn
✓ COD Nam Che
(15 MW)
✓ COD DT1&2 (420
MW) and Phuyen TTP (257 MW)
✓ No scheduled
maintenance period
Q2 Q3 Q4
✓ COD
Interchem (5 MW)
✓ No scheduled
maintenance period
✓ Expect to
synchronize 5 IU MW to ABPR5
✓ First quarter to
fully recognize revenue from 692 MW COD in Q2’2019
*Based on our projections
✓ Rising MW contribution from
renewable power to 30% from 8%, leading to potentially higher EBITDA margin
SLIDE 9
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
8
Agenda
8
4
HIGHLIGHTS BGRIM UPDATE Q1’2019 OPERATING RESULTS
SLIDE 10
BGRIM INVESTOR PRESENTATION Q1’2019 9
Awards and Recognition Awards and Recognition
✓
SET50
✓
SET100
✓
SETCLMV FTSE SET Mid Cap
EIA Monitoring Awards 2016 Certificate of the Carbon Footprint for Organization (CFO) Best Energy Solutions Provider ASIA Project of the Year 2015: Best Distributed Generation Project The Most Innovative Bond Deal The First Non- financial Corporate Green Bond from Thailand Certificate
- f membership
- f GEIDCO*
*Global Energy Interconnection Development and Cooperation Organization
SLIDE 11
BGRIM INVESTOR PRESENTATION Q1’2019 10
Awards and Recognition
“Very Good”
“ESG 100”
(by Thaipat Institute)
“Thai CAC”
(by Thai Institute of Directors Association (IOD))
“Thailand Sustainability Investment (THSI) List”
(by Stock Exchange of Thailand)
“AGM Level”
(by Thai Investors Association)
“CGR Score”
(by Thai Institute of Directors Association (IOD))
“Sustainability Report Awards”
(by Stock Exchange of Thailand)
SLIDE 12
BGRIM INVESTOR PRESENTATION Q1’2019
29.9% 28.7% 10.6% 10.1% 8.7% 5.8%6.2%
84.3% 13.6% 0.5% 1.6%
11
Total 975 MW
In Operation 165 MW*
Solar Group 822 MW (677 MW Under Development) Hydro Group 133 MW (113 MW Under Development) Wind Group 16 MW (Under Development) Bien Hoa 13 MW Diesel Gas Fired
Total 2,257 MW
In Operation 2,022 MW*
Amata City (Chonburi) 675 MW (Including ABP1&2 Replacement 140 MW each) Amata City (Rayong) 647 MW Bangkadi 229 MW Laem Chabang 196 MW
(Including BPLC1 Replacement 140 MW)
WHA Chonburi 1 130 MW BGPR1&2 240 MW (Under Development)
Type of Energy Installed MW Equity MW Total Capacity % In
- peration
Total Capacity % In
- peration
Gas fired 2,257 MW 69.5% 2,022 MW 1,587 MW 70.2% 1,202 MW Hydro 133 MW 4.1% 20 MW 95 MW 4.2% 14 MW Solar 822 MW 25.3% 145 MW 557 MW 24.7% 135 MW Wind 16 MW 0.5% 15 MW 0.7% IWTE 5 MW 0.1% 2 MW 0.1% Diesel 13 MW 0.4% 13 MW 4 MW 0.2% 4 MW Total 3,245 MW 100% 2,200 MW* 2,260 MW 100% 1,355 MW*
Well-Diversified Portfolio with Expert in Green-Field Developer
SPP – INDUSTRIAL ESTATE 69.5% TRANSMISSION & DISTRIBUTION 0.4%
Waste to Energy (IWTE) 5 MW (Under Development)
RENEWABLE GROUP 30.1%
Poi Pet PPSEZ 14 MW**
**Transmission & distribution and solar rooftop only which not included in power plant installed capacity of 3,245 MW
SOLAR ROOFTOP
WHA (Map Ta Put) 140 MW (Including SPP1 Replacement) Solar rooftop for industrial users and commercial buildings with up to 100 MW
- pportunity**
*Up to 280 MW
*As of April 2019
SLIDE 13
BGRIM INVESTOR PRESENTATION Q1’2019 12
Long-Life PPA and Benefit from Well-Establishment of PPA
2018 SALES AND SERVICE INCOME BY CUSTOMER WEIGHTED AVERAGE REMAINING PPA LIFE
EGAT
67%
IU-TH
25%
IU-VN
3%
Steam-TH
2%
Others
3%
THB 10,257 mm
Q1’2019 Sales and Service Income LONG-TERM PPA STRUCTURE
- EGAT : 21 to 25 years tenor with take-or-pay structure
- PEA : 25 years tenor (VSPP of solar, wind, waste to energy)
- Industrial Users : up to 15 year tenor with track record of
extensions Secured Gas Supply with PTT covering respective PPA tenors Gas price pass-through at contracted heat rate under EGAT PPA
24.6 22.6 19.0 9.1
EDL PEA / MEA EGAT Industrial users - electricity (Thailand)
Track Record of Extensions
Years Years Years Years Years Note: Weighted Average Remaining PPA life is calculated as the average remaining contractual term remaining from 31 December 2018 to expiry weighted by the aggregate contracted capacity under the relevant agreement 15.0 Years
SLIDE 14
BGRIM INVESTOR PRESENTATION Q1’2019
13
FOOTHOLD IN TOP INDUSTRIAL ESTATES WITH MULTIPLE OF GENERATING UNITS IN EACH LOCATION SELECTED TOP IU FOR ELECTRICITY AND STEAM
THAILAND CAMBODIA LAOS VIETNAM ▪ 1 power plant ▪ 130 MW ▪ 3 generating units ▪ 2 power plants ▪ 229 MW ▪ 6 generating units ▪ 2 power plants ▪ 240 MW ▪ 6 generating units ▪ 1 power plant ▪ 13 MW ▪ 5 power plants ▪ 647 MW ▪ 15 generating units ▪ 5 power plants ▪ 732 MW ▪ 17 generating units ▪ 2 power plants ▪ 159 MW ▪ 5 generating units
WHA Chonburi 1 Bangkadi BGPR1&2 Amata City Rayong
Amata City Bien Hoa XXHP Gas-fired cogeneration power plants Transmission and Distribution
▪ 1 power plant ▪ 20 MW ▪ 3 generating units
Hydro power plants
Delivery of Reliability in Form of Electricity and Steam
▪ 2 power plants ▪ 124 MW ▪ 4 generating units
WHA Eastern (Map Ta Phut) Amata City Chonburi Laem Chabung
SLIDE 15
BGRIM INVESTOR PRESENTATION Q1’2019 14
Robust Growth Pipeline with Promising on Execution
ACHIEVED COD IN TIME AND WITHIN BUDGET
Gas Solar IWTE Hydro Wind
2020
Plants
Solar WVO-Coop
(7 plants - 31 MW)
40
Plants
2,076 MW
Installed Capacity
1,217 MW
Equity Capacity
ABPR3, ABPR4 & ABPR 5
(3 plants - 399 MW)
52
3,193 MW
Installed Capacity
Tadsakoi
(30 MW)
2022 Plants
ABP1 Replacement
(140 MW)*
BPLC1 Replacement
(140 MW)*
ABP2 Replacement
(140 MW)*
Nam Khao 3
(15 MW)
3,152 MW
Installed Capacity
2,105 MW
Equity Capacity
Plants
BGPR1, BGPR2
(2 plants -240 MW)
2021
50
Plants 2021
SPP1 Extension
(2 plants -124 MW)
46
2019
Plants
1,850 MW
Equity Capacity DTE (1 plants - 420 MW) Interchem (5 MW) (166 MW)
2,896 MW
Installed Capacity Phu Yen TTP (1 plants - 257 MW) ABP1 Extension Nam Che (15 MW) SPP1 (2 plants - 124 MW)
53
2,222 MW
Equity Capacity
2023 Plants
3,200 MW
Installed Capacity
Nam Khao 5
(8 MW)
2,912 MW
Installed Capacity
1,865 MW
Equity Capacity
Bo Thong 1 & 2
(2 plants - 16 MW)
48
Plants
2,227 MW
Equity Capacity
3,215 MW
Installed Capacity
Nam Khao 4
(15 MW)
SPP1 Replacement
(2 plants -140 MW)**
3,245 MW
Installed Capacity
Nam Khao 2
(15 MW)
2,238 MW
Equity Capacity
Nam Khao 1
(15 MW)
2,260 MW
Equity Capacity
2024
54
Plants
56
2025 Plants 2018
*Up to 150 MW, **Up to 280 MW
***Based on our projections and may subject to change depending on project suitability
SLIDE 16
BGRIM INVESTOR PRESENTATION Q1’2019 15
Diligently Invest in Suitable Opportunities via Strong Networks
May
Mutual Cooperation Meeting with KEPCO Strengthening the cooperation and implementation of energy storage system and smart grid technology 677 MW PPA signing for solar farm in Vietnam
Under construction with target COD in June 2019
100 MW solar rooftop opportunities
1.8 MW COD achievement and 11.3 MW under construction with target COD in 2019.
June
Determine target KPI
THAILAND LAOS MALAYSIA
Gas Solar Hybrid Hydro Transmission and Distribution System (T&D) Wind
VIETNAM CAMBODIA KOREA PHILIPPINES
MOU signing with LG Chem Cooperation with LG Chem, world leader in fields of energy storage system (ESS), automotive batteries and mobile batteries, for the development in energy storage system.
SLIDE 17
BGRIM INVESTOR PRESENTATION
16
Upcoming COD - Projects under construction are on track
% Progress
Type of Fuel: Waste to energy Capacity: 4.8 MW Economic Ownership: 48% PEA PPA : 4 MW / FIT THB 6.08 (+THB 0.70- 8 years) Progress: - Finished concept and detail design
- On process of construction site
preparation 6.8%
% Progress
Q2’2019
Interchem
% Progress
Dec’2019
Nam Che 1 Hydro Power Plant
Type of Fuel: Hydro (Run of the river) Installed Capacity: 15 MW Economic Ownership: 72.0% EDL PPA: 15 MW / 25 years Progress: - Finishing main area facilities, i.e. powerhouse and switchyard, generating unit, penstock
- On process of transmission line and
communication system 98.9%
SLIDE 18
BGRIM INVESTOR PRESENTATION Q1’2019 17
BGRIM FINANCIAL PERFORMANCE
Lower Funding Cost through Various Sources of Financing
In May 2018, BIP1 and BIP2 issued 15-year amortizing debentures in amount of THB 6,700 mm with rating A- and coupon rate of 3.95% per annual. 4.9% 4.7% 4.6% 4.4%
0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.05 0.052016 2017 2018 Q1'2019
Financing cost has gradually improved to 4.4% Q1’2019 Capital Structure ‘A’ CREDIT RATING BOND
Debenture issuance for refinancing and new investment
In October 2018, BGRIM issued 2-10-year debentures in amount of THB 9,700 mm with rating A- and effective coupon rate of 4.18% per annual.
29% 71% TOTAL DEBT
THB 60.7 bn
Project level Corporate level
In December 2018, BGRIM issued 5-7-year green bonds in amount of THB 5,000 mm with fixed coupon rate.
Debt refinance of around THB 2.2 billion is expected in 2Q19, with potential of interest saving.
SLIDE 19
Q1’2019 BGRIM INVESTOR PRESENTATION
Q3’2018 OPERATING RESULT BGRIM OVERVIEW Q3’2018 UPDATE
18
Agenda
18
4
HIGHLIGHTS BGRIM UPDATE Q1’2019 OPERATING RESULTS
SLIDE 20
BGRIM INVESTOR PRESENTATION Q1’2019 19
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
2,218 2,202 2,413 27.2% 22.2% 23.5%
19.0% 21.0% 23.0% 25.0% 27.0% 29.0% 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Q1/18 Q4/18 Q1/19
Q1/2018 to Q1/2019 (YoY):
- Sales and service income increased 25.8% YoY primarily due to
an increase in revenue from the commercial operations of ABPR3, ABPR4 and ABPR5 (which are located in Amata City Rayong Industrial Estate) on February 1, June 1 and October 1, 2018 respectively.
Q4/2018 to Q1/2019 (QoQ):
- Sales and service income increased 3.3% QoQ primarily due to an increase of
volume and selling price of electricity and steam.
Q1/2018 to Q1/2019 (YoY):
- EBITDA increased 8.8% YoY due to the operation of new power plants
- perated in 2018.
- EBITDA margin was 23.5% in Q1/2019 declining from 27.2% in Q1/2018
because of 1) an 18.7% increasing gas cost which could not be fully offset by a slight increasing average selling price and 2) the scheduled maintenance was peak in Q1/2019 for this year which is also relatively higher than Q1/2018.
Q4/2018 to Q1/2019 (QoQ):
- EBITDA increased 9.6% QoQ due to lower scheduled maintenance during
Q1/2019 relative to Q4/2018 and lower expense from seasonally peak of SG&A in Q4.
- EBITDA margin was 23.5% in Q1/2019 rebounding from 22.2% in Q4/2018
thanks to 1) more volume dispatched from industrial users, 2) less scheduled maintenances 3) continual improvement in production efficiency and 4) less seasonal impacts.
95% 97% 97%
2%
1%
2% 3% 2% 1%
8,156 9,933 10,257 Q1/18 Q4/18 Q1/19 Electricity Others Steam
(Unit: THB mm) (Unit: THB mm)
EBITDA Margin EBITDA +324 / 3.3% QoQ +2,101 / 25.8% YoY +211/ 9.6% QoQ +195 / 8.8% YoY
EBITDA AND EBITDA MARGIN TOTAL SALE AND SERVICE INCOME
Top Line and EBITDA Grew Strongly
SLIDE 21
BGRIM INVESTOR PRESENTATION Q1’2019 20
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
393 395 85 106 175 172 58 57 37 38 Q1/18 Q1/19 Q1/18 Q1/19 Q1/18 Q1/19 Q1/18 Q1/19 Q1/18 Q1/19 Q1/18 Q1/19 6* Amata City Amata City Laem Chabang WHA Chonburi 1 Bangkadi WHA Eastern Chonburi Rayong (Map Ta Phut)
2.88 3.25 3.27 3.30
Q1/18 Q1/19 Q1/18 Q1/19 EGAT Industrial Users (TH)
(Unit:THB/KWh)
1,750 749 2,127 775 Q1/18 Q1/19 Q1/18 Q1/19 EGAT Industrial Users (TH)
(Unit: GWh) (Unit: GWh)
KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE 3 MONTHS YoY
ELECTRICITY SALES VOLUME YoY ELECTRICITY SELLING PRICE YoY SALES VOLUME FOR EACH INDUSTRIAL USER FOR 3 MONTHS (TH) YoY
(Unit:THB/mmBTU)
Electricity Sales Volume Increased YoY for Both EGAT and IU (Q1/2018 vs Q1/2019)
237.21
Q1/18 Q1/19
EFFECTIVE GAS COST
281.52
EGAT
- EGAT sales volume increased 21.6% YoY primarily due to the inclusion
- f ABPR3, ABPR4 and ABPR5 which commenced commercial operation in
February, June and October 2018 respectively.
- Electricity price sales to EGAT increased by 12.8% from Baht 2.88/kWh
in Q1/2018 to Baht 3.25/kWh in Q1/2019 because the energy payment is generally adjusted to reflect changes in natural gas price which rose in Q1/2019.
IU Thailand
- IU Thailand sales volume increased 3.5% YoY primarily due to 1) the
inclusion of new industrial users in Amata City Rayong Industrial Estate especially from new operation plants in 2018, 2) the inclusion of SPP1’s industrial users in WHA Eastern (Map Ta Phut) and 3) an increase in demand load from existing customers in Bangkadi Industrial Park.
- Electricity price sales to industry users in Thailand increased 0.9%
YoY which is in line with the changes in Ft charge announced by the ERC.
* Since the consolidation in March 2019
Top Line and EBITDA Grew Strongly
SLIDE 22
BGRIM INVESTOR PRESENTATION Q1’2019
EGAT
- EGAT sales volume increased 3.6% QoQ primarily due to seasonal impact
(as the dispatch volume is usually soft in Q4) and additional contributions from SPP1 acquisition in March.
- Electricity price sales to EGAT increased by 0.3% from Baht 3.24/KWh in
Q4/2018 to Baht 3.25/KWh in Q1/2019 because the energy payment is generally adjusted to reflect changes in natural gas price which rose in Q1’2019.
- IU Thailand
- IU Thailand sales volume increased 1.7% QoQ primarily due to 1) the
inclusion of new industrial users in Amata City Rayong Industrial Estate especially from new operation plants in 2018, 2) the inclusion of SPP1’s industrial users in WHA Eastern (Map Ta Phut) and 3) an increase in demand load from existing customers in Bangkadi Industrial Park.
- Electricity price sales to industry users Thailand remain unchanged while
Ft charge slight increasing because of a decrease of capacity charge (MW) of ABP1 and ABP2.
2,053 763 2,127 775 Q4/18 Q1/19 Q4/18 Q1/19 EGAT Industrial Users (TH)
(Unit: GWh) (Unit: GWh)
21
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
Top Line and EBITDA Grew Strongly
3.24 3.25 3.30 3.30
Q4/18 Q1/19 Q4/18 Q1/19 EGAT Industrial Users (TH)
(Unit:THB/KWh)
ELECTRICITY SELLING PRICE QoQ
(Unit:THB/mmBTU)
0.0%
SALES VOLUME FOR EACH INDUSTRIAL USER (TH) QoQ ELECTRICITY SALES VOLUME QoQ
KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE QoQ
Electricity Sales Volume Increased QoQ for Both EGAT and IU (Q4/2018 vs Q1/2019)
Q4/18 Q1/19
EFFECTIVE GAS COST
278.60 281.52
395 395 98 106 172 172 63 57 35 38 Q4/18Q1/19 Q4/18Q1/19 Q4/18Q1/19 Q4/18Q1/19 Q4/18Q1/19 Q4/18Q1/19 6* Amata City Amata City Laem Chabang WHA Chonburi 1 Bangkadi WHA Eastern Chonburi Rayong (Map Ta Phut) 0.0%
* Since the consolidation in March 2019
SLIDE 23
BGRIM INVESTOR PRESENTATION Q1’2019
Ft (Fuel Adjustment Charge) is a component of electricity tariff announced by Energy Regulatory Commission (ERC) every 4 months to reflect overall
cost of fuel that EGAT uses to generate electricity which includes a portion that EGAT purchases from private sector and import from neighboring countries ➢ In general, natural gas is contributed for 70% of total fuel used to produce electricity in Thailand. Thus, change in gas price has high correlation with change in Ft over the past 10 years. ➢ In addition, the gap between these two indexes is widen since 2011 – the year that renewable business was start commencement in Thailand BGRIM’s Electricity price sold to IU is normally benchmark with Ft which would, in the long run, be moved in the same direction with change in gas price
0% 50% 100% 150% 200% 250% 300% Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Adjusted FT Index Gas price Index
22
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
High Correlation between Gas Price and Ft – Benefit to IU Sales
Change in Ft vs Gas Price in 2005-2018
Introduction of renewable energy
Adjusted FT Index Gas Price Index
SLIDE 24
BGRIM INVESTOR PRESENTATION Q1’2019
8,389 7,599 7,551 8,430 7,616 7,542
1st Round SPP 2nd Round SPP 3rd Round SPP
2018 Q1'2019
23
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
High Standard Technology Leads to High Efficiency & Availability
95.2 96.4 98.6 95.0 94.0 99.3
70 75 80 85 90 95 100
1st Round SPP 2nd Round SPP 3rd Round SPP
2018 Q1'2019
Our SPP power plants realized lower heat rates Most of our gas-fired cogeneration power plants have availability factors of above 90% since COD
HIGH AVAILABILTY (AVAILABILTY FACTOR)
Note: (a) Electricity equivalent generations of steam dispatched are calculated according to efficiency calculation of EGAT PPA (SPP generation 1) 1st Round SPP consist of ABP1, ABP2, BPLC1 BPLC2 and SPP1 2nd Round SPP consist of ABP3, ABP4, ABPR1, ABPR2 BIP1 and BIP2 3rd Round SPP consist of ABP5, ABPR3, ABPR4 ABPR5 and BPWHA
(%)
HIGH EFFICIENCY (HEAT RATE)
Contracted Heat Rate 8,600 BTU/kWh Contracted Heat Rate 8,000 BTU/kWh Contracted Heat Rate 7,950 BTU/kWh
(BTU/kWh)
SLIDE 25
BGRIM INVESTOR PRESENTATION Q1’2019 24
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
687 244 443 180 31
Unrealized Fx Gain Non- recurring expense NNP NNP to NCI NNP to Owner
835
512 220 443 318 161 244
830 381 687
100 200 300 400 500 600 700 800 900 1000
Q1/18 Q4/18 Q1/19 10.2% 3.8% 6.7% NNP Margin NNP to owner NNP to Non-Controlling Interest (NCI)
Q1/2018 to Q1/2019:
- NNP declined 17.2% / NNP to Owner declined 13.5% YoY primarily due to an 18.7%
increase in gas cost per unit but a 0.9% increase selling price per unit to IUs (from slower adjustment of Ft charge relatives to gas cost) however, this was the temporary situation as gas price starting to lower in Q2/2019. Furthermore, there was a relatively more scheduled maintenance in Q1/2019 comparing to the same period of last year; however, the scheduled maintenance is expected to be lower in the rest of this year.
- NNP margin declined to 6.7% in Q1/2019 as described previously.
Q4/2018 to Q1/2019:
- NNP increased 80.3% / NNP to Owner increased 101.4% QoQ primarily due to 1) less
seasonal impact than Q4 when there are normally drop in volume during holiday seasons and high SG&A, 2) an improvement on financing cost mainly attributable to debt refinancing, 3) lower interest expense from ABPIF and 4) relatively lower scheduled maintenance.
+306 / 80.3% QoQ
- 143 / -17.2% YoY
Reconciliation Items:
- Unrealized Fx gain is due to an appreciation of the Baht against the U.S. dollar
at the ending of each financial statement period.
- Non-recurring expense is primarily due to a remuneration program’s expense
in the amount of Baht 14 million and a provision of obsolete inventory in the amount of Baht 17 million.
NORMALIZED NET PROFIT (NNP)
(Unit: THB mm)
RECONCILE NORMALIZED NET PROFIT (NNP) OF Q1/2019
(Unit: THB mm)
Net Profit
1,203
Q1/2018 Q1/2019
Start the year with strong Q1’2019 NNP
SLIDE 26
BGRIM INVESTOR PRESENTATION Q1’2019 25
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
Strong Financial Position Thanks to the Well-Managed Capital Structure
72% 74% 28% 26% 31 Dec 18 31 Mar 19 15% 14% 9% 9% 76% 77% 31 Dec 18 31 Mar 19
100,636 110,161
Cash, cash Equivalents and ST investments Other Current Assets
(Unit: THB mm)
Assets
Total Liabilities Total Equity
110,161 100,636
Liabilities and Equity
Non- Current Assets
Financial Position as at 31 Mar 2019 Total assets
- Total assets increased by 9.5%, primarily due to an
increase in property, plant and equipment, and intangible assets.
Total liabilities
- Total liabilities increased by 12.0%, primarily due to an
increase in short-term borrowing for project acquisition, construction payable for project under construction and additional loan drawdown for the projects under development and construction.
Total Equities
- Total equities increased by 2.9%, primarily due to the
increase in retained earnings during the period.
STATEMENT OF FINANCIAL POSITION AS OF 31 MAR 2019
SLIDE 27
BGRIM INVESTOR PRESENTATION Q1’2019 26
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
BGRIM optimizes Capital Structure through Well Managed Debt Profile
THB 60,721 MM
(as of 31 March 2019) Project Level (In Operation) Loan (THB)
- Only 29% loan represents loan at the corporate level. The remaining 71%
contributes to debts at power plant level with limited recourse to sponsor
- Interest obligations of almost all power plant level debts are swapped to
fixed rate
- Only 15% of total loan as at 31 March 2019 is denominated in USD which is
matched with a proportion of EGAT tariff indexation to USD at project level, so called “Natural Hedge” strategy
THB 15,517 MM THB 9,361 MM Project Level Debenture THB 3,037 MM Corporate Level Loan THB 14,610 MM Corporate Level Debenture
24%
THB 18,176 MM Project Level (In Operation) Loan (USD)
5% 30% 26% 15% 0%
Project Level (Under Construction) Loan (USD) THB 19 MM
4.9% 4.7% 4.6% 4.4%
0.04 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.052016 2017 2018 Q1/2019
- Financing costs decreased to 4.4% in Q1/2019 due to:
- Refinancing of project bond of 1) BIP1 and BIP2
amount of 6.7 billion in May 2018 to reduce financing cost at project level.
- Issuing of corporate bond in the amount of THB 9.7
billion in October 2018 and green bond in the amount of THB 5.0 billion in December 2018
- Note that we aim to have more refinancing activities
to reduce the financial cost further in 2019.
(THB mm)
FINANCING COSTS
SLIDE 28
BGRIM INVESTOR PRESENTATION Q1’2019 27
PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE
Capital Structure and Dividend Policy
- Manage debt and equity funding to optimize capital structure
- Seek to obtain financing at project level
- Limited-recourse project loan with back-end equity
- Target 3.0x debt to equity project financing at outset,
delivering over project life
- Consolidated debt included loans at power plant because
BGRIM holds majority in most of the projects
Note: Net Interest-bearing debt is Interest-bearing debt less cash, cash equivalents and short-term investments.
55%
45% NNP to Owner 2018
NET INTEREST-BEARING DEBT TO EQUITY RATIO
- Minimum 40% of normalized net profit of consolidated financial
statements
45% of net profit are paid as dividend with the total amount of 834 THB mm
▪
Dividend payment 0.32 THB per share for 2018 was approved in AGM on 25 April 2019. The payment will be made by 10 May 2019. (Including interim dividend for 1H’2018 at the rate of 0.15 THB per share and remaining dividend for 2H’2018 at the rate of 0.17 THB per share)
1,842 0.7x 0.9x 1.5x 1.6x
(0.20) (0.10)- 0.10
Dec-18 Mar-19
Company only Consolidated
Gearing Ratios
- Consolidated net interest-bearing debt to equity ratio increased to
1.6x, and for the Company only increased to 0.9x as a result
- f additional investments in new projects to support the company’s
earnings growths in both short term and long term.
(Unit: THB mm)
DIVIDEND PAYMENT
DIVIDEND POLICY CAPITAL STRUCTURE
SLIDE 29
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULT Q3’2018 UPDATE BGRIM OVERVIEW
Q1’2019
Q3’2018 UPDATE Q3’2018 OPERATING RESULTS BGRIM OVERVIEW Q3’2018 OPERATING RESULTS BGRIM OVERVIEW
28
Appendix
28
SLIDE 30
BGRIM INVESTOR PRESENTATION
29
BGRIM OVERVIEW Q3’2018 UPDATE
Summary of PDP2018
Security Ecology Economy
◼
Increase balancing of total power generation capacity by region
◼
Include capacity from IPS (Independent Power Supply) to national power system
◼
Consider reliable capacity to balance demand-supply instead of target 15% reserve margin
◼
Increase portion of natural gas to 53% (from 37% in PDP2015)
◼
Support low-cost power generation
◼
Distributed Generation policy to stimulate economic throughout the country especially industrial sector
◼
Support renewable following COP21 frame
◼
Encourage solar rooftops to household sector
◼
Develop smart grid system to support the change to prosumer concept
SLIDE 31
BGRIM INVESTOR PRESENTATION
30
BGRIM OVERVIEW Q3’2018 UPDATE
Summary of PDP2018 - Total Power Generation Capacity (MW)
20,766 500 2,112 13,156 1,740 5,857 8,300 4,000
Renewable Hydro Cogeneration Combined Cycle (EGAT/IPP) Coal-fired (EGAT/IPP) Import IPP Bidding (EGAT/IPP) Energy Efficiency Plan (EEP)
46,090 25,310 56,431 77,211
Total capacity as of Dec 2017 during 2018-2037 Total additional capacity during 2018-2037 Total retired capacity at the end of 2037 Grand total capacity
SLIDE 32
BGRIM INVESTOR PRESENTATION
31
New 8,300 MW IPP Opportunity (Target COD) 2023 2024 2030 2032 2033 2034 2035 2036
700 MW - (Replacing TECO) 700 MW - (Replacing RG TH#1-2) 700 MW - EGAT / IPP Bidding 700 MW - EGAT / IPP Bidding 1,400 MW - EGAT / IPP Bidding (Replacing GPG) 1,000 MW - EGAT / IPP Bidding (Replacing BLCP)
North Eastern North Eastern Upper Central West West East East
1,000 MW - EGAT / IPP Bidding (Replacing BLCP) 700 MW - EGAT / IPP Bidding (Replacing Chana CC#1 and Krabi TH#1)
South South
700 MW - EGAT / IPP Bidding
Source: EPPO
SLIDE 33
BGRIM INVESTOR PRESENTATION Q1’2019 32
- Longest established infrastructure, industrial, and healthcare group in Thailand since 1878
- Concessionaire and contractor of the largest infrastructure system in Thailand and South East Asia of the 1890s:
Rangsit irrigation canals
- Introducing leading engineering technologies into Thailand since the 1880s until today with Krupp, Siemens, Carl Zeiss,
Merck, Voith and United Technologies
Values: Positivity, Pioneering Spirit, Professionalism, and Partnership
"Doing Business with Compassion for the development
- f civilization in harmony with nature"
140th Year Anniversary of B.Grimm
Opened Siam Dispensary
1890 1931 1996 2010
Built Rangsit canal together with Snidvongse family Installed the first telephone line between Germany and Thailand Supplied turnkey systems and services with Siemens for BTS sky train Awarded first Small Power Producer (“SPP”) contract for Amata B.Grimm Power 1 Consortium leader for Airport Rail Link
1878
B.Grimm Power reached 2,200 MW installed capacity
1941 April 2019
SLIDE 34
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULT Q3’2018 UPDATE BGRIM OVERVIEW
Q1’2019
Q3’2018 UPDATE Q3’2018 OPERATING RESULTS BGRIM OVERVIEW Q3’2018 OPERATING RESULTS BGRIM OVERVIEW
33 33
B.Grimm Power’s Team
- Mr. Harald Link
Chairman (23 years with B.Grimm Power) Major Shareholder
- Ms. Preeyanart Soontornwata
President (23 years with B.Grimm Power) Chairperson of The Association of Private Power Producers, Thailand
- Dr. Surachai Saibua
Management Committee Member (23 years with B.Grimm Power) Previously held positions with EGAT and Petroasia International
- Mr. Surasak Towanich
Senior Executive Vice President Sales and Marketing (23 years with B.Grimm Power) Previously held positions with EGAT and ABB
- Mr. Nopadej Karnasuta
Senior Executive Vice President CFO and International Business Development (6 years with B.Grimm Power) Previously held positions with KBANK and EGCO
- Mr. Peradach Patanachan
Senior Executive Vice President Legal Counsel (12 years with B.Grimm Power) Previously held positions with Clifford Chance and KPMG
- Mr. Chote Chusuwan
Senior Executive Vice President Chief Operation Officer (23 years with B.Grimm Power) Previously held positions with EGAT and Cogeneration PCL
BGRIM Corporate Structure – Long Commitment from Management
- Mr. Arunphun Pootong
Executive Vice President Business & Project Developments (Conventional) and Commercial & Procurement
Previously held positions with EGAT and JERA Power
SLIDE 35
BGRIM INVESTOR PRESENTATION 34
Core subsidiaries and associates only
Corporate Structure
60.0%
SLIDE 36
BGRIM INVESTOR PRESENTATION 35
BGRIM’s Shareholders
34.0% 24.4% 9.0% 1.1% 0.4% 31.1% B.Grimm Power (Singapore) PTE. LTD.
- Mr. Harald Link
B.Grimm Joint Venture Holding
- Ms. Caroline Link
Public Shareholders
Top Public Shareholders (as of 30 April 19) %
- 1. ASIAN DEVELOPMENT BANK
4.7%
- 2. BBL Long-Term Equity Fund
1.7%
- 3. Thai Life Insurance Co., Ltd
1.1%
- 4. Muang Thai Life Assurance Co., Ltd
1.0%
- 5. SOUTH EAST ASIA UK (Type C) NOMINEES
LIMITED 0.8%
- 6. Others
21.8% Total 31.1%
2,606.9 MM SHARES
Directors and Management
PUBLIC SHAREHOLDERS
SLIDE 37
BGRIM INVESTOR PRESENTATION 36
Operational Power Plants: Conventional
Note: (a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant (b) Amata B.Grimm Power owned 30.0% of ABPIF’s units and consequently, our economic ownership of Amata B.Grimm Power 1 Limited and Amata B.Grimm Power 2 Limited was 15.3% (c) NEPC is currently in the process of establishing policies relating to the extension of SPP PPAs that will expire between 2019 – 2025 (include ABP1, ABP2 and BPLC1) for 10 years with up to the existing contracted capacity. (d) Acquired from Sime Darby Energy on 30 June 2014 (e) We instead purchase power directly from a subsidiary of EVN which we then on-sell to industrial users in Amata City Bien Hoa Estate
Company Abbreviation Fuel Type COD Economic Ownership %(a) Installed Equity Offtaker / PPA Expiry Contracted Capacity (MW) Electricity Contracted Capacity (MW) Steam Contracted Capacity (MW) (MW) Program (t/h) Amata Nakorn Industrial Estate, Thailand Amata B.Grimm Power 1 ABP1 Gas-Fired Cogen Sep-98 15.3%(b) 166.4 25.5 EGAT (SPP) Sep-19(c) 90 106.2 6 Amata B.Grimm Power 2 ABP2 Gas-Fired Cogen Sep-01 15.3%(b) 171.2 26.2 EGAT (SPP) Sep-22(c) 90 82.2 16 Amata B.Grimm Power 3 ABP3 Gas-Fired Cogen Oct-12 60.70% 132.5 80.4 EGAT (SPP) Oct-37 90 46.1 13 Amata B.Grimm Power 4 ABP4 Gas-Fired Cogen Nov-15 55.50% 131.1 72.8 EGAT (SPP) Nov-40 90 32.5 – Amata B.Grimm Power 5 ABP5 Gas-Fired Cogen Jun-16 55.50% 131.1 72.8 EGAT (SPP) Jun-41 90 33.4 13 Subtotal 732.3 277.7 450 300.4 48 Amata City Industrial Estate, Thailand Amata B.Grimm Power (Rayong) 1 ABPR1 Gas-Fired Cogen Nov-13 61.70% 123.3 76.1 EGAT (SPP) Nov-38 90 17 14 Amata B.Grimm Power (Rayong) 2 ABPR2 Gas-Fired Cogen Jun-13 61.70% 124.4 76.8 EGAT (SPP) Jun-38 90 24 14 Amata B.Grimm Power (Rayong) 3 ABPR3 Gas-Fired Cogen Feb-18 55.50% 133 73.8 EGAT (SPP) Feb-43 90 18
- Amata B.Grimm Power (Rayong) 4
ABPR4 Gas-Fired Cogen Jun-18 55.50% 133 73.8 EGAT (SPP) Jun-43 90 16
- Amata B.Grimm Power (Rayong) 5
ABPR5 Gas-Fired Cogen Oct-18 55.50% 133 73.8 EGAT (SPP) Oct-43 90 14
- Subtotal
646.7 374.3 450 89 28 Laem Chabang Industrial Estate, Thailand B.Grimm Power (Laem Chabang) 1 BPLC1 Gas-Fired Cogen Jul-01(d) 100.00% 103 103 EGAT (SPP) Jul-22(c) 60 50.1 46.2 B.Grimm Power (Laem Chabang) 2 BPLC2 Gas-Fired Cogen Feb-09(d) 100.00% 56.1 56.1 – – – 60.8 18.5 Subtotal 159.1 159.1 60 110.9 64.7 Bangkadi Industrial Park, Thailand B.Grimm BIP Power 1 BIP1 Gas-Fired Cogen Apr-15 74.00% 114.6 84.8 EGAT (SPP) Apr-40 90 14 – B.Grimm BIP Power 2 BIP2 Gas-Fired Cogen Jan-16 74.00% 114.6 84.8 EGAT (SPP) Jan-41 90 18.5 – Subtotal 229.2 169.6 180 32.5 – WHA Chonburi1 Industrial Estate, Thailand B.Grimm Power (WHA) 1 BPWHA1 Gas-Fired Cogen Nov-16 75.00% 130.2 97.5 EGAT (SPP) Nov-41 90 31 – WHA Eastern (Map Ta Phut) Industrial Estate, Thailand SPP1 SPP1 Gas-Fired Cogen Feb & Dec-98 100.00% 124.00 124.00 EGAT (SPP) Feb & Dec--21 110 110 48 Gas-Fired Cogen Total 2,021.50 1,202.20 1,250.00 642.80 188.70 Amata City (Bien Hoa) Industrial Estate, Vietnam Amata Power (Bien Hoa)(e) APB Diesel Generator Apr-99 30.70% 13 4 – – – 310.5 – Conventional Total 2,034.50 1,206.20 1,250.00 953.30 188.70
SLIDE 38
BGRIM INVESTOR PRESENTATION 37
Operational Power Plants: Solar
Company / Project Abbreviation Location COD Economic Ownership %(a) Capacity Main PPA(s) Installed (MW) Equity (MW) Offtaker / Program PPA Expiry B.Grimm Yanhee Solar Power BGYSP 100.0% 59.7 59.7 Sai Luang 2 Pathumthani province, Thailand Dec-15 8.0 8.0 PEA (FiT) Dec-40 8.0 8.0 Sai Luang 3 Sai Luang 9 7.2 7.2 Sai Luang 10 7.5 7.5 Sai Yai Nha 8.0 8.0 Sai Manow 8.0 8.0 Sai Putsa 8.0 8.0 Sai Sena 2 Ayutthaya province, Thailand 5.0 5.0 Solarwa Solarwa 47.5% 38.5 18.3 Sai Lui Rim Num Nakhon Pathom province, Thailand Dec-15 8.0 3.8 PEA (FiT) Dec-40 Sai Chalouw 1 8.0 3.8 Sai Sab 8.0 3.8 BGTTRE2 Saraburi province, Thailand 8.0 3.8 BGTTRE3 6.5 3.1 TPS Commercial TPS Saraburi province, Thailand Dec-15 47.5% 8.0 3.8 PEA (FiT) Dec-40 B.Grimm Solar Power (Sakaeo) 1 BGPSK Sakaeo province, Thailand Apr-16 100.0% 8.0 8.0 PEA (FiT) Apr-41 Solar WVO-Cooperatives Solar WVO-Coop Dec-18 100.0% 30.8 30.8 BSPCD Sakaeo province, Thailand 2.3 2.3 PEA (FiT) Dec-43 BGPCCS Phetchabun province, Thailand 3.6 3.6 BSPCB Surat Thani province, Thailand 5.0 5.0 BGSP1WN Bangkok province, Thailand 5.0 5.0 MEA BGPLKB Bangkok province, Thailand 5.0 5.0 BGPBBO Samut Prakan province, Thailand 5.0 5.0 BGPSAI Nonthaburi province, Thailand 5.0 5.0 Total 145.0 120.6
Note: As of 31 December 2018 (a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant.
SLIDE 39
BGRIM INVESTOR PRESENTATION 38
Source: 56-1, EGAT, PEA (a) Some contract terms are year-on-year basis (b) According to concession agreements
SPP Gas-fired Cogeneration Solar PV Wind Hydro EGAT Industrial Users PEA (FiT) PEA (Adder) EDL Electricity Steam Term (years)
21 – 25 years 5 – 15 years(a) 5 – 15 years(a) 25 years 5 years 25 years
Extension option
✓
✓ ✓
– 5 years auto extension Up to 10 years
Contracted capacity
90 MW
(except for BPLC1 which is 60MW)
Depends on each contract 5 – 8 MW 8 MW 6.7 – 15 MW(b)
Secured fuel supply
✓ ✓ ✓
N/A N/A N/A
Natural gas cost pass-through
✓
(at contracted heat rate)
Partially through Ft Depends on contract N/A N/A N/A
FX pass-through
✓
Partially through Ft – – – –
Inflation indexation
– –
✓
– – –
Tariff
See next page 5.66 THB/kWh PEA wholesale + 10-year adder at 3.50 THB/kWh 0.065 US$/kWh
Applicable power plants
ABP1-5, ABPR1-5, BPLC1, BIP1-2, BPWHA1, BGPR1-2, SPP1 BGYSP (8 projects), Solarwa (5 projects), TPS, BGPSK Bo Thong (2 projects) XXHP (2 projects), Nam Che, Nam Khao 1-5 (5 projects)
Contractual Overview: Commercial Features
SLIDE 40
BGRIM INVESTOR PRESENTATION 39
Electricity Tariff = Capacity Payment + Energy Payment + Fuel Saving Payment + VAT
Capacity Payment Rate (THB/kW/month) = 𝐷𝑄0 × 𝑦 ×
𝐺𝑌𝑢 𝐺𝑌0 +(1− 𝑦)
Energy Payment Rate (THB/kWh) = 𝐹𝑄0 +
𝑄𝑢−𝑄0 106
× contracted Heat rate Fuel Saving Payment Rate (THB/KWh) = 𝐺𝑇0 ×
𝑄𝐹𝑇𝑢 10%
𝐺𝑌𝑢 = THB/ US$ Exchange Rate 𝑄𝑢 = Price for natural gas PTT sells to SPPs in a month (THB/mmBTU) 𝑄𝐹𝑇𝑢 = primary energy saving (“PES”) statistic measuring the efficiency rate of
- ur gas-fired cogeneration power plant in consuming natural gas in the
generation of electricity and thermal energy
Source: Company filing and data, EGAT
SPP Regulation 1992, 1998 & 2005 2007 2010 Applicable power plants ABP1-2, SPP1 BPLC1 ABP3, ABPR1-2, BIP1 ABP4-5, ABPR3-5, BIP2, BOWIN, BGPR1-2 Base Capacity Payment Rate (𝐷𝑄
0) (THB/kW)
302.00 383.66 420.00 Base Exchange Rate (𝐺𝑌0) (THB/US$) 27 37 34 US$THB FX indexation (𝑦) 0.8 0.5 0.5 Base Energy Payment Rate (𝐹𝑄
0) (THB/kWh)
0.85 1.70 1.85 Base Price for Natural Gas PTT sells to SPPs (𝑄
0)
(THB/mmBTU) 77.0812 209.4531 232.6116 Contracted Heat Rate (BTU/kWh) 8,600 8,000 7,950 Fuel Saving Payment
- ✓
✓ Base Fuel Saving Payment (𝐺𝑇0) (THB/kWh)
- 0.36
0.36
Contractual Overview: EGAT PPA under SPP Program
TARIFF STRUCTURE
SLIDE 41
BGRIM INVESTOR PRESENTATION 40
Projects Installed Capacity (MW) Steam Capacity (ton/hr) Type of maintenance Duration (days) 2018 Q1 Q2 Q3 Q4
Amata City (Chonburi)
ABP1 166.4 30.0 Major Overhaul 24 ABP2 171.2 30.0 Major Overhaul 22 Major Overhaul 12 ABP3 132.5 30.0 Major Overhaul 20 ABP4 131.1 30.0 Major Inspection 15
Laem Chabang
BPLC1 103.0 50.0 Major Overhaul 14 Major Overhaul 15 BPLC2 56.1 20.0 Major Inspection 7
Bangkadi
BIP1 114.6 20.0 Major Inspection 12 BIP2 114.6 20.0 Major Inspection 11
Major Maintenance Schedule in 2018 & 2019
Projects Installed Capacity (MW) Steam Capacity (ton/hr) Type of maintenance Duration (days) 2019 Q1 Q2 Q3 Q4
Amata City (Chonburi)
ABP1 166.4 30.0 Major Overhaul 22 ABP2 171.2 30.0 Major Overhaul 25 ABP3 132.5 30.0 Major Overhaul 20 ABP4 131.1 30.0 Major Inspection 12 ABP5 131.1 30.0 Major Inspection 24
WHA Chonburi 1
BPWHA 130.0 30.0 Major Inspection 12
SLIDE 42
BGRIM INVESTOR PRESENTATION
Abbreviation & Our Projects
ABBREVIATION
ADB Asian Development Bank COD Commercial Operation Date EBITDA Earnings before Interest, Taxes, Depreciation and Amortization EDL Electricite Du Laos EGAT Electricity Generating Authority of Thailand ERC Energy Regulatory Commission EPC Engineering, Procurement and Construction EVN Electricity of Vietnam FiT Feed-in Tariff FX Foreign exchange IPO Initial public offering IU Industrial user IWTE Industrial Waste to Energy JV Joint venture KWh / GWh Kilo / Gigawatt-hour MEA Metropolitan Electricity Authority mmBtu Million Btu (unit of gas consumption) NNP Normalized net profit O&M Operations and maintenance P.A. Per annum PEA Provincial Electricity Authority (Thailand) PPA Power purchase agreement PTT PTT public Company Limited ROA Return on assets ROE Return on equity SG&A Selling, general & administrative expense YE Year End YoY Year-on-Year
OUR PROJECTS
ABPIF Amata B.Grimm Power Plant Infrastructure Fund ABP1 Amata B.Grimm Power 1 ABP2 Amata B.Grimm Power 2 ABP3 Amata B.Grimm Power 3 ABP4 Amata B.Grimm Power 4 ABP5 Amata B.Grimm Power 5 ABPR1 Amata B.Grimm Power (Rayong) 1 ABPR2 Amata B.Grimm Power (Rayong) 2 ABPR3 Amata B.Grimm Power (Rayong) 3 ABPR4 Amata B.Grimm Power (Rayong) 4 ABPR5 Amata B.Grimm Power (Rayong) 5 BGPSK B.Grimm Solar Power (Sakaeo) 1 BGSENA B.Grimm Sena Solar Power Limited BGYSP B.Grimm Yanhee Solar Power BIP1 B.Grimm BIP Power 1 BIP2 B.Grimm BIP Power 2 BPLC1 B.Grimm Power (Laem Chabang) 1 BPLC2 B.Grimm Power (Laem Chabang) 2 BPWHA1 B.Grimm Power (WHA) 1 Nam Che Nam Che 1 Hydro Power Project XXHP Xenamnoy 2 and Xekatam 1 Hydro Power Project Interchem Progress Interchem Solar WVO Solar WVO-Cooperatives Projects DTE Dau Tieng Tay Ninh Energy Solar Plant Project (Xuan Cau) Phu Yen TTP Phu Yen TTP Solar Plant Project (Phu Yen)
41
SLIDE 43
BGRIM INVESTOR PRESENTATION
Abbreviation & Our Projects
OUR PROJECTS
BSPCD The Chon Daen agricultural cooperatives project BGPCCS The WVO project, namely the Veteran Support Office of Chonburi BSPCB The Ban Na Doem agricultural cooperatives project BGSP1WN The WVO project, namely Office of Agriculture, Industry and Services Affairs BGPLKB The WVO project, namely the Veterans General Hospital BGPBBO The WVO project, namely the WVO Office of Terminal Production Workshop BGPSAI The WVO project, namely the WVO Office of Security Services
42
SLIDE 44
BGRIM INVESTOR PRESENTATION
INVESTOR RELATIONS IR Contact
Disclaimer None of the Company makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document or otherwise made available nor as to the reasonableness of any assumption contained herein or therein, and any liability therein (including in respect of any direct, indirect or consequential loss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise or representation, whether as to the past or the future and no reliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Further, nothing in this document should be construed as constituting legal, business, tax or financial advice. This document is a summary only and does not purport to contain all of the information that may be required to evaluate any potential transaction and any recipient hereof should conduct its own independent analysis of the Company, including the consulting of independent legal, business, tax and financial advisers. The information in these materials is provided as at the date of this document and is subject to change without notice. .
Email: IR@BGrimmPower.com Tel: +66 (0) 2710 3528 Solaya Na Songkhla
Email: Solaya.N@BGrimmPower.com
Gunnlapat Wichutarat
Email: Gunnlapat.W@BGrimmPower.com
Thunruethai Makaraphan
Email: Thunruethai.M@BGrimmPower.com
Contact Us:
- Dr. Gerhard Link Building,
5 Krungthepkreetha Road, Huamark, Bangkapi, Bangkok 10240, Thailand Tel: +66 (0) 2710 3400 Fax: +66 (0) 2379 4245
43