BGRIM: Investor Presentation for Year End 2018 March 2019
Summary of 2018 Highlight “BGRIM increases total capacity by delivering projects in pipeline and beyond with improve performance both operationally and financially” 4 3 PPAs signing for 420 MW ◼ capacity of DTE (Xuan Cau) solar power plant on September 5, THB 6,700 mm 15-year ◼ 2018 2 amortizing debentures with rating A- for reduce interest PPAs signing for 257 MW ◼ rate and extend tenors of capacity of Phu Yen TTP BIP1 and BIP2 Completely own 100% of 1 ◼ (Phu Yen) solar power BGYSP - 59.7 MW Solar THB 9,700 mm corporate plant on October 10, 2018 ◼ Project since July 2018 with debentures were issued in gain from business October 2018 with rating Totaling 677 MW capacity ◼ Installed capacity grew by ◼ combination of THB 276 mm A- for refinancing to reduce with tariff of USD 9.35 26% to 2,076 MW, driven by Cent per kWh through 20 interest rate and extend successful COD of ABPR Started consolidate ◼ tenors years and target COD by 3-5 and solar WVO-Coop BGYSP ' s FS in Q3‘2018 June 30, 2019 projects. THB 5,000 mm green ◼ bonds were issued in Upside from aquisition is ◼ December 2018 with fixed toward refinancing with coupon rate for refinancing bond at lower and new investment financial cost BGRIM INVESTOR PRESENTATION Year End 2018 BGRIM OVERVIEW Q3’2018 UPDATE Q3’2018 UPDATE Q3’2018 OPERATING RESULT BGRIM OVERVIEW 1
Agenda 4 YEAR END 2018 OPERATING RESULTS BGRIM OVERVIEW BGRIM UPDATE BGRIM INVESTOR PRESENTATION Year End 2018 Q3’2018 UPDATE Q3’2018 OPERATING RESULT BGRIM OVERVIEW 2
Top Line and EBITDA Grew Strongly EBITDA AND TOTAL SALE AND SERVICE INCOME EBITDA MARGIN +5,103 / 16.2% YoY (Unit: THB mm) (Unit: THB mm) 10000 +2,171 / 28.0% YoY 27.0% 27.7% EBITDA 24.9% 25.1% 22.2% 29.0% 9000 Margin 36,585 +242 / 2.5% QoQ +474 / 5.4% YoY 2% Others 8000 +103 / 4.9% YoY 9,199 2% Steam 31,482 27.0% 8,725 7000 2% 2% 6000 9,933 -208 / 8.6% QoQ 25.0% 2% 9,691 5000 1% 2% 96% Electricity 4000 EBITDA 7,762 1% 23.0% 2% 96% 3000 2% 2,410 2,202 97% 2,099 2000 97% 21.0% 96% 1000 0 19.0% Q4/17 Q3/18 Q4/18 2017 2018 Q4/17 Q3/18 Q4/18 2017 2018 2017 to 2018 (YoY): 2017 to 2018 (YoY): • • EBITDA increased 5.4% YoY due to the operation of new power plants in Sales and service income increased 16.2% YoY primarily due to 2018. 1) an increase in electrical sales volume from COD of new power plants - • EBITDA margin declined to 25.1% in 2018 because of 1) the 10.1% rise in ABPR3 (February 2018), ABPR4 (June 2018) and ABPR5 (Oct 2018), 2) gas price per unit but only 2.8% rise in electricity selling price to IUs with limit rising volume from existing customers and 2) an increase of selling price adjustment of Ft charge and 2) relatively more scheduled maintenance in per unit. 2018. Q3/2018 to Q4/2018 (QoQ): Q3/2018 to Q4/2018 (QoQ): • Sales and service income increased 2.5% QoQ primarily due to an • EBITDA decreased 8.6% QoQ due to 1) an 4.6% increase of gas price but increase in volume from ABPR5 that fully operated in Q4/2018 despite the stable electricity selling price to IUs with no adjustment of Ft charge, partly offset by seasonally demand decline from industrial users (IUs) in however, this was the temporary situation as Ft charge already increased in Q4/2018. January 2019 2) more scheduled maintenance during Q4/2018 relative to Q3/2018 and 3) seasonally high expense • EBITDA margin declined to 22.2% in Q4/2018 BGRIM INVESTOR PRESENTATION Year End 2018 PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE 3
Top Line and EBITDA Grew Strongly KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE 12 MONTHS YoY SALES VOLUME FOR EACH INDUSTRIAL USER (Unit: GWh) ELECTRICITY SALES (Unit: GWh) FOR 12 MONTHS (TH) YoY VOLUME YoY 1,610 1,551 7,702 697 688 6,706 372 345 236 3,057 2,949 221 143 145 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 EGAT Industrial Users (TH) Amata City Chonburi Amata City Rayong Laem Chabang WHA Chonburi 1 Bangkadi EFFECTIVE GAS ELECTRICITY SELLING (Unit:THB/KWh) EGAT PRICE YoY COST (Unit:THB/mmBTU) • EGAT sales volume increased 14.9% YoY due to the inclusion of ABPR3, ABPR4 and ABPR5 which commenced commercial operation in 2018. 3.28 • Electricity price sales to EGAT increased by 6.2% from Baht 3.19 3.07 2.89/kWh in 2017 to Baht 3.07/kWh in 2018 as the energy payment is 2.89 259.0 generally adjusted to reflect the changes in natural gas price (which rose 235.3 in 2018) . IU Thailand • IU Thailand sales volume increased 3.7% YoY due to 1) the inclusion of new industrial users in Amata City Rayong Industrial Estate and 2) an increasing demand load from existing customers in Amata City Chonburi, 2017 2018 2017 2018 2017 2018 Laemchabang and WHA Chonburi 1 Industrial Estate . EGAT Industrial Users (TH) • Electricity price sales to industry users in Thailand increased 2.8% YoY, mainly from the YoY increase in Ft charge. *Due to scheduled maintenance in August BGRIM INVESTOR PRESENTATION Year End 2018 PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE 4
Top Line and EBITDA Grew Strongly KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE QoQ (Unit: GWh) ELECTRICITY SALES SALES VOLUME FOR EACH INDUSTRIAL USER (TH) (Unit: GWh) VOLUME QoQ QoQ 2,053 2,006 419 395 176 172 789 763 98 98 63 35 62 34 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 EGAT Industrial Users (TH) Amata City Chonburi Amata City Rayong Laem Chabang WHA Chonburi 1 Bangkadi EFFECTIVE GAS ELECTRICITY SELLING (Unit:THB/KWh) EGAT COST PRICE QoQ (Unit:THB/mmBTU) • EGAT sales volume increased 2.3% QoQ due to full operation of ABPR5 that achieved COD in October 2018. 0.0% • Electricity price sales to EGAT increased by 3.5% from Baht 3.13/KWh in Q3/2018 to Baht 3.24/KWh in Q4/2018 as the energy 278.6 3.30 3.30 266.5 3.24 payment is generally adjusted to reflect changes in natural gas price 3.13 (which rose in Q4/2018). IU Thailand • IU Thailand sales volume decreased 3.3% QoQ due to seasonal reason that Japanese industrial users have traditional long-holiday in Q4 and many industrial users speed up the production in Q3 every year. This could not be fully offset by an increase in demand of industrial users in WHA Chonburi 1 Industrial Estate and Bangkadi Q3/18 Q4/18 Q3/18 Q4/18 Q3/18 Q4/18 Industrial Park. EGAT Industrial Users (TH) • Electricity price sales to industry users Thailand remain unchanged due to unchanged of Ft during this period. BGRIM INVESTOR PRESENTATION Year End 2018 PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE 5
High Correlation between Gas Price and Ft – Benefit to IU Sales Change in Ft vs Gas Price in 2005-2019 300% 250% Adjusted FT Index 200% Introduction of renewable energy 150% 100% Gas Price Index 50% 0% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 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 BGRIM INVESTOR PRESENTATION Year End 2018 PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE 6
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