CK POWER PU B LIC COMPANY LIMITED JANUARY 2016 Agenda Our Group - - PowerPoint PPT Presentation

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CK POWER PU B LIC COMPANY LIMITED JANUARY 2016 Agenda Our Group - - PowerPoint PPT Presentation

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CK POWER PU B LIC COMPANY LIMITED JANUARY 2016 Agenda Our Group Our Portfolio Business Overview Significant Events in 2015 Financial Performance Financial Highlights Industry Outlook CKP Outlooks CKP in the Next

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SLIDE 1

CK POWER PUBLIC COMPANY LIMITED JANUARY 2016

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SLIDE 2
  • Business Overview
  • Financial Performance
  • CKP Outlooks
  • Xayaburi Acquisition

1

  • Our Group
  • Our Portfolio
  • Significant Events in 2015
  • Financial Highlights
  • Industry Outlook
  • CKP in the Next 5 Years
  • Looking Forward
  • CKP Snap Shot

Agenda

Page 2

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SLIDE 3

Remark : Shareholding percentage as of June 25, 2015

Our Group: Infrastructure Oriented

Bangkok Expressway and Metro Public Company Limited (BEM) TTW Public Company Limited (TTW)

  • Ch. Karnchang

Public Company Limited (CK)

Public

CKP

30.2480% 19.4023% 25.3140% 25.0357% 27.47% 19.04%

Hydro – 1,900 MW Cogeneration – 238 MW Solar – 22 MW

SouthEast Asia Energy Company Limited (SEAN) Bangpa-in Cogeneration Company Limited (BIC)

  • BIC Phase 1
  • BIC Phase 2

Nam Ngum 2 Company Limited (NN2)

Bangkhenchai Company Limited(BKC) Chiangrai Solar CompanyLimited (CRS) Nakorn Ratchasima Solar Company Limited (NRS) 75% 65% 100% 30% 30%

Xayaburi Power Company Limited (XPCL)

56% 30%

  • Infrastructure Oriented
  • Transportation System
  • Tap Water Supply
  • Electricity Supply
  • Ultimate Parent Company

as the EPC contactor

Page 3

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CKP Hydro – 1,900 MW Cogeneration – 238 MW Solar – 22 MW

  • BIC Phase 1
  • BIC Phase 2

NN2

Our Portfolio: Diversified Portfolio

XPCL BIC 1 BIC 2 BKC CRS NRS

Operation Jan 2013 42%1/ 615 258 Construction Oct 2019 30% 1,285 385 Operation Jun 2013 65% 118 76 Construction Jun 2017 65% 120 78 Aug 2012 100% 8 8 Operation Mar 2013 30% 8 2 Mar 2012 30% 6 2 COD/SCOD CKP’s shares Capacity MW Equity MW

Remark : 1/ CKP owns 56% in SEAN which holds 75% in NN2.

Total Capacity MW = 2,160 MW Total Equity MW = 810 MW

Page 4

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NN2HPP: Storage Dam

Project Summary Initial Operation Date (IOD) March 2011 Commercial Operation Date (COD) January 2013 Concession Period 25 years from COD with the GOL Power Purchase Agreement

  • 615 MW with EGAT
  • Take or Pay
  • 25 years from COD

Shareholders

  • SEAN 75%
  • EdL-Gen 25%

Shareholders of SEAN

  • CKP 56%
  • RATCH 33%
  • Other 11%

Thai-Lao Border Transmission Line

NN2

Page 5

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1,971 2,218 2,314 2,218 2,153 154 92 95 16 41 654 101 151 88

  • 3,802

3,838 4,097 3,967 3,883 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

  • 500

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

2011(Mar-Dec) 2012 2013 2014 2015(F)

PE SE EE Revenue (Secondary Axis)

GWh

Electricity Sold and Revenue

IOD period 0.02475 0.963 1.253 1.060 IOD period = Mar 26, 2011 to Dec 31, 2012 COD = Jan 1, 2013 Year PE Tariff SE Tariff EE Tariff USD / kwh THB / kwh THB / kwh THB / kwh

Power Generation

  • Installed Capacity 615 MW

(3x205 MW)

  • Annual Supply Target 2,310 GWh

plus Excess Energy

  • PE 2,218 GWh per year
  • SE 92 GWh per year

Tariff Structure

COD + 6 years after COD 0.02475 0.965 1.255 1.062 Thereafter 0.02668 1.041 1.353 1.062

MB

NN2HPP: Operating Highlights

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  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800

  • 50

100 150 200 250 300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014-Production 2015-Production 2014-Inflow (Secondary Axis) 2015-Inflow (Secondary Axis)

Monthly Electricity Production and Reservoir Level

GWh MCM

* Water level as at end of 2015 = +372.45 m.asl.

NN2HPP: Operating Highlights

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Project Summary Scheduled COD October 2019 Concession Period 29 years from COD Power Purchase Agreement

  • 1,220 MW with EGAT
  • 60 MW with EDL
  • Take or Pay

Shareholders of XPCL

  • CKP

30.0%

  • Natee Synergy 25.0%

(PTT Group)

  • EDL 20.0%
  • EGCO

12.5%

  • BEM

7.5%

  • PT Sole

5.0% Power Generation

  • Installed Capacity 1,285 MW
  • EGAT: 7 x 175 MW via 500 kV
  • EDL: 1 x 60 MW via 115 kV
  • Annual Supply Target
  • EGAT: 5,709 GWh plus EE

(Levelized tariff 2.159 THB/kWh with fx = 34 THB/USD)

  • EDL: 343 GWh

(Levelized tariff 2.173 THB/kWh with fx = 34 THB/USD)

Xayaburi HPP: Run-of-River

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Xayaburi HPP: On Schedule

Work Progress as of December 2015 = 56%

1 2 3 4 5 6

Navigation Lock Spillway Intermediate Block Powerhouse Fish Migration Transmission Line

Phase 1 Phase 2

Source: www.xayaburi.com

Page 9

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BIC 1 & 2: Gas-fired Cogeneration

Project Summary COD-BIC 1 SCOD-BIC 2

  • June 2013
  • June 2017

Concession Period 25 years from COD Power Purchase Agreement

  • 90 MW with EGAT

(Min. Take or Pay with gas price pass-through mechanism)

  • Selling the rest of

electricity and steam to industrial estate users Shareholders of BIC

  • CKP 65%
  • GPSC 25%
  • Other 10%

Installed Capacity BIC 1

  • 118 MW of electricity
  • 20 tons per hour of

steam BIC 2

  • 120 MW of electricity
  • 20 tons per hour of

steam

Bangpa-in Industrial Estate

BIC 2 BIC 1 BIC 2

Page 10

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BIC 1: Operating Highlights

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

  • 10

20 30 40 50 60 70 80 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014-Electricity 2015-Electricity 2014-Steam 2015-Steam

Monthly Electricity and Steam Production

GWh Ton

332 647 636 44 114 123 1,289 2,716 2,578

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

  • 100

200 300 400 500 600 700 800

2013(Jun-Dec) 2014 2015(F)

EGAT Ius Revenue (Secondary Axis)

Electricity and Steam Production

GWh MB

24,442 94,328 97,312 21 80 77

10 20 30 40 50 60 70 80 90

  • 20,000

40,000 60,000 80,000 100,000 120,000

2013(Jun-Dec) 2014 2015(F)

Steam Revenue (Secondary Axis)

Ton MB.

Page 11

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BIC 2: On Schedule

Work Progress as of December 2015 = 19%

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BKC: Ground-mounted Solar Farm

BIC 1 BIC 2 Project Summary COD August 2012 Concession Period 5 years from COD with automatic renewal Power Purchase Agreement

  • Provincial Electricity

Authority (PEA)

  • Adder: 8 Baht / kWh for

10 years from COD Shareholders of BIC CKP 100% Capacity 8 MW BKC

Nakhon Ratchasima Province

Page 13

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BKC: Operating Highlights

  • 1

2 3 4 5 6 7

  • 200

400 600 800 1,000 1,200 1,400 1,600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014-Electricity 2015-Electricity 2014-Irradiation 2015-Irradiation

MWh kWh/m2

Monthly Electricity Production and Irradiation

5,665 14,001 14,077 13,979 65 160 163 158

20 40 60 80 100 120 140 160 180

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000

2012(Aug-Dec) 2013 2014 2015(F)

Electricity Production

MWh

  • Avg. Tariff 11.4740 11.4278 11.6482 11.4537

(THB/kWh)

MB

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CKP: Significant Events in 2015

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

  • 2. First Dividend

Dividend payment: THB 0.10 per share Payment date: 27-Apr-2015

  • 4. XPCL Acquisition

Acquisition: 30% of XPCL’s registered capital Total shares: 805,830,000 shares Total value: approx. THB 4,344 Million Transaction date: 10-Jun-2015

  • 1. Par Value change

Old par value: THB 5 per share New par value: THB 1 per share Transaction Date: 20-Apr-2015

  • 3. Capital increase

Total new shares: 1,870 Million shares Right Offering price: THB 3 per share Total capital increase: THB 5,610 Million Register date: 29-May-2015

Issuing CKP-W1

Total units: 1,870 Million units Register date: 29-May-2015

AGM approvals on 9-Apr-2015

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Hydro 56% Cogeneration 41% Solar 3% Electricity Sales by sector 9M 2015

1,765 1,548 1,730 1,968 1,661 1,676 1,508 5,043 4,845

  • 1,000

2,000 3,000 4,000 5,000 6,000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 9M 2014 9M 2015

Revenue exc. Fx

MB

1,018 793 955 1,198 902 962 774 2,767 2,639

  • 500

1,000 1,500 2,000 2,500 3,000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 9M 2014 9M 2015

EBITDA exc. Fx

MB

  • Diversified portfolio
  • Stable revenue stream with

long-term contracts

  • Healthy margin
  • Rainfall delay in 2014-2015

57.7% 51.2% 55.2% 60.8% 54.3% 57.4% 51.4% 54.9% 54.5% EBITDA Margin

9M 2015 – CKP Performance

CKP: Financial Highlights

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Including $ 152M

9M 2015 – Finance Costs

480 16,268 3,925 746 518 September 30, 2015 (MB) CKP NN2 BIC1 BIC2 BKC Including $ 140M Cost of debt 5.07% DE Ratio = 0.89x Cost of debt 4.83% DE Ratio = 0.72x 485 17,514 3,987 569 December 31, 2014 (MB) CKP NN2 BIC1 BKC

  • Low gearing ratio at 0.72 times
  • 9-Month finance costs reduced by 9% due to loan repayment and interest rate reduction
  • Natural hedge on USD loan and USD revenue
  • NN2 Refinance is in process

CKP: Financial Highlights

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2016 Highlights

  • To enhance electricity sales through water level monitoring
  • To optimize O&M activities for quality and cost control
  • To finalize NN2’s refinance in Q1 2016
  • Construction progress of BIC2 and XPCL

CKP: Financial Highlights

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Industry Outlook: Domestic

  • Thailand’s current installed capacity

Source: Thailand’s Power Development Plan 2015 41% 35% 12% 6% 6% 64% 20% 8% 7% 1% EGAT IPP SPP Imported & Exchange

TOTAL 37,612 MW

Power Generation by Producers

Natural Gas Clean Coal Renewable Energy Imported Hydro Diesel / Fuel Oil

Power Generation by Fuel Type

VSPP

  • Thailand’s planned installed capacity at the

end of PDP 2015

Unit: MW PDP2015 Installed capacity at the end of 2014 37,612 New installed capacity 57,459 Retired (24,736)

Installed capacity at the end of 2036 70,335

PDP2015 Fuel Type Sep 2014 (percentage) Sep 2026 (percentage) Sep 2036 (percentage) Imported Hydro 7 10-15 15-20 Clean Coal (including Lignite) 20 20-25 20-25 Renewable 8 10-20 15-20 Natural Gas 64 45-50 30-40 Nuclear

  • 0-5

Diesel/Fuel Oil 1

  • TOTAL

100 100 100

  • Target fuel mix at the end of PDP 2015

Year Solar Wind Hydro Waste Biomass Biogas Energy Total Crops 2014 1,299 225 3,048 66 2,542 312 - 7,490 2036 6,000 3,002 3,282 500 5,570 600 680 19,634

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Neighboring Countries in Focus: Lao PDR

  • Lao PDR to be “the battery of Asia”
  • A theoretical hydroelectric potential of about

26,500 MW excluding the mainstream Mekong 1/

  • MOU 7,000 MW with Thailand 2/

Status Project Type Contracted Capacity (MW) In Operation Theun-Hinboun HPP Hydro 434 Houy Ho HPP Hydro 126 Nam Theun 2 HPP Hydro 948 Nam Ngum 2 HPP Hydro 597 Hongsa 1-2 Lignite 2 x 491 Under Construction Hongsa 3 (2016) Lignite 491 Nam Ngiep 1 (2019) Hydro 269 Xe Pian Xe Namnoy (2019) Hydro 354 Xayaburi (2019) Hydro 1,220 MOU Stage Nam Theun 1 HPP Hydro 525

Total 5,946

Source:1/ http://www.poweringprogress.org/ Department of Energy Business 2/ under negotiation to increase to 10,000 MW

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  • Abundant water resource on the mainstream Mekong River

Source: http://www.poweringprogress.org/

1 2 3 4 5 6 7 8 9 10 11

Project

Capacity (MW) Construction Planned

  • 1. Pak Beng

1,230

  • 2. Luang Prabang

1,410

  • 3. Xayaburi

1,285

  • 4. Pak Lay

1,320

  • 5. Sanakham

570

  • 6. Pak Chom

1,079

  • 7. Ban Khoum

2,000

  • 8. Lat Sua

800

  • 9. Don Sahong

360

  • 10. Stung Treng

980

  • 11. Sambor

460 Total 1,285 10,209

Neighboring Countries in Focus: Lao PDR

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Neighboring Countries in Focus: Myanmar

  • Existing Electricity (2014 Statistics)
  • Max. demand

2,370 MW Peak load 2,100 MW

  • No. of consumers 2.9 millions

Electrification ratio 32%

  • Demand Forecast
  • Power Supply Planning

Source: Department of Hydropower Implementation, MOEP, Myanmar

  • A hydroelectric potential of about

108,000 MW

  • MOU 1,500 MW with Thailand

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Industry Outlook: Myanmar

  • Abundant water resource in the Major River Basins

River Basins Developed capacity (MW) Under construction (MW) Under processing (MW) Potential future projects (MW) Total of each basins (MW)

Ayeyarwady Upper Ayeyarwady Lower Ayeyarwady 1,870 149 2,056 150 15,200

  • 6,000
  • 25,126

299 Chindwin

  • 380

1,860 2,240 Sittaung 810

  • 260
  • 1,070

Thanlwin 302 81 15,395 765 16,543 Others 20 111 521 1,512 2,164 Total 3,151 2,398 21,756 10,137 47,442 Source: Department of Hydropower Implementation, Myanmar

Chindwin River

Thanlwin River

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  • XPCL: on time COD and in

budget while taking into accounts the valid concerns from stakeholders

  • Additional concessions:

large-scale hydroelectric power projects

CKP in the Next 5 Years

  • BIC-2: on time COD and in

budget

  • PDP2015: more renewable

power projects, especially the ground-mounted solar power projects (at least new 100MW)

  • In-depth understanding:

country and associated risks

  • Materialization of new

projects: focusing on hydroelectric power projects.

Thailand Lao PDR Myanmar

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  • Our AMBITIONS

 To own 5,000 MW of installed capacity within the next 10 years

Looking Forward

  • Commitment to Our SHAREHOLDERS

 A fair return  A sustainable growth  A good corporate citizen  A social & environmental friendly corporation

In Operation 2015

  • NN2 615 MW
  • BIC 1 118 MW
  • Solar 22 MW

Under Construction 2015

  • XPCL 1,285 MW
  • BIC 2 128 MW
  • 1,000

2,000 3,000 4,000 5,000 6,000

2015 2017 2019 2021 2023 2025

MW Page 25

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CKP Snap Shot: A True Developer

CKP

Expertise in Hydro & In-depth experience in other technology Ability to Raise Funds (Hold Co., Project Co, and Support from major shareholders) Relationship with Government Entities (Thailand and Lao PDR) CK as an EPC Contractor (>40 yrs experience) Page 26

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Disclaimer These presentations and/or other documents have been written and presented by CK Power Plc. CK Power Plc. is solely responsible for the accuracy and completeness of the contents of such presentations and/or other documents. J.P. Morgan does not have any responsibility for or control over the contents of such presentations and/or other

  • documents. No endorsement is intended or implied notwithstanding the distribution of the presentations and/or
  • ther documents at J.P. Morgan’s Thailand CEO-CFO Conference 2016. The materials and information in the

presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.

IR Contact T el: 0 2691 9720 Fax: 0 2691 9723 Email: ir@ckpower.co.th Website: http://www.ckpower.co.th

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Maintenance plan 2016: NN2PC

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Routine Maintenance X X X X X X X X X X X X use 9 hours/month for 3 units Yearly Check up

  • Unit 1

X 6 days, 12/11/16 - 18/11/16

  • Unit 2

X 6 days, 18/11/16 - 24/11/16

  • Unit 3

X 6 days, 6/11/16 - 12/11/16 Annual Test

  • Unit 1

X 13 hours

  • Unit 2

X 13 hours

  • Unit 3

X X 13 hours Maintenance Plan 2016 Remark

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Maintenance plan 2016: BIC

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GT1 Borescope inspection @24000hr X GT2 Borescope inspection @24000hr X GT1, STG, HRSG Minor inspection @25000hr X GT2,HRSG Minor inspection @25000hr X GT1 Borescope inspection @28000hr X GT2 Borescope inspection @28000hr X Maintenance Plan 2016

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Maintenance plan 2016: BKC

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yearly Preventive Maintenance X

  • Power transformer & Station service transformer

X

  • 22 kV. Power circuit breaker

X

  • 22 kV. Current transformer

X

  • 22 kV. Voltage transformer

X

  • Protection relay

X

  • Energy meter & Meter

X

  • Busbar

X

  • Battery charger & Battery

X

  • Power Cable

X Yearly Calibration

  • Digital Meter

X

  • PEA Meter

X CCTV System X Fire Alarm System X Lighting System X X X X Water Treatment System X X X X X X X X X X X X Air Condition System X X X X Computer Set X X X X Maintenance Plan 2016