COMPANY PR OF IL E 1 20/ 03/ 2018 Sun For The Future CONT E - - PowerPoint PPT Presentation

Sun For The Future

COMPANY PR OF IL E

20/ 03/ 2018

1

Sun For The Future

CONT E NT S

• Vision & Mission
• Ke y De ve lopme nt Mile stone s
• Por

tfolios & Dive r sific ation (T

• ta ling 298.42 MW PPA)
• Inve stme nt in T

hailand (T

• ta ling 121.70 MW PPA)
• So la r PV F

a rms & So la r T he rma l – 85.5 MW PPA

• So la r PV Ro o fto ps – 14 MW PPA
• Bio ma ss Po we r Pla nts – 22.2 MW PPA
• Inve stme nt in Japan (T
• ta ling 176.72 MW PPA)
• So la r PV F

a rms – 176.72 MW PPA

• F

inanc ial Highlights

• Pro fita b ility
• Va lua tio n Assumptio n

2

T

• b e c o me a wo rld-c la ss re g io na l le a de r in pro viding

re ne wa b le e ne rg y thro ug h re lia b le te c hno lo g ie s to se rve b o th c o mme rc ia l a nd so c ia l so c ie tie s T

• e sta b lish a so lid fo o tprint in T

ha ila nd in the so la r po we r industry a nd e xpa nd into o the r re ne wa b le e ne rg ie s a s we ll a s de ve lo ping a n inte rna tio na l so la r po we r b usine ss fo c using in Asia & Oc e a nia re g io ns

Visio n Missio n

Sun For The Future

VISION & MISSION

3

Sun For The Future

– supporting GREEN & CLEAN AIR

“ We aim to reduce reliance on fossil fuels by creating cleaner air quality through renewable energy with the goal to cut emissions of major pollutants. ”

• Renewable Energy produces little to no global warming emissions. Even when including

“life cycle” emissions of clean energy (i.e. emissions from each stage of a technology’s life —manufacturing,

installation, operation, decommissioning), the global warming emissions associated with renewable

energy are minimal (*)

• Solar Energy provide air quality, public health, and greenhouse gas emission benefits as it reduces

reliance on combustion-based electricity generation.

Sources: * Intergovernmental Panel on Climate Change (IPCC). 2011

• Dr. Cathleen Maleenont, CEO of TSE PCL -

Sun For The Future

SOLAR ENERGY: CLEANER AIR - SOONER AT LOWER COST

• The costs of renewable energy technologies have declined steadily, and are projected to drop even more.

For example, the average price to install solar dropped more than 70% between 2010 and 2017 (*)

• Solar Energy requires essentially no water to operate and thus does not pollute water resources or strain supplies

by competing with agriculture, drinking water, or other important water needs. Costs will likely decline even further as markets mature and companies increasingly take advantage of economies of scale.

• In contrast, fossil fuel prices can vary dramatically and are prone to substantial price swings. For example, there

was a rapid increase in US coal prices due to rising global demand before 2008, then a rapid fall after 2008 when global demands declined (**) Likewise, natural gas prices have fluctuated greatly since 2000.

Sources: * SEIA. 2017. Solar Market Insight Report 2017 Q2 / ** UCS. 2011. A Risky Proposition: The financial hazards of new investments in coal plants..

Sun For The Future

In a Nutshell: Invest in RE to cut air pollution harms

Renewable Energy (RE) and Energy Efficiency (EE) will work in synergy to drive global energy decarburization. When pursued together, they result in higher shares of renewable energy, a faster reduction in energy intensity, and lower energy system costs. This also brings environmental and social benefits, such as less air pollution.

2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E

T HE RMAL PV F ARM

4.5

MW

44.5

MW

89.5

MW PV ROOF T OP

99.0

MW PV F ARM - JAPAN

104.5

MW

106.5

MW

129.9

MW CO- OP PV F ARM BIOMASS PP

143.4

MW

143.4

MW

143.4

MW * Po te ntial E

nhanc e rs

• VSPP Se mi- F

ir m (Bioma ss PP)

• Ove r

se a s Bioma ss PP

298.4

MW

+ Jyoso 1.25 + Biomass 22.2

+ Ha na mizuki 13.5 + Onikoube 154.98

MW PPA

BBL 5400 mT HB SCB 566 mT HB E XIM 2258 mT HB SMT B 4800 mJPY De be ntur e s 3000 mT HB

+ Sakur a 1.99 (Hanamizuki)

DE VE L OPME NT MIL E ST ONE S

Continuing Por tfolio Impr

• ve me nt:

Stre ng the ne d Pre se nc e in Pro spe c t Ma rke t & Ne w Busine ss E xpa nsio n

O wne r ship G r

• ss

E ffe c tive So la r T herm a l T SE F ully Op era ted 100% 4.50 4.50 B a se T a riff + F T

+ Adde r 8 Baht (10 ye ars fro m C OD)

0% (yea r 0 – 8) So la r PV F a rm s T SR F ully Op era ted 60% 104.80 80.00 B a se T a riff + F T

+ Adde r 6.5 Baht (10 ye ars fro m C OD)

10% (yea r 9 – 13) So la r PV Ro o fto p s T SE R F ully Op era ted 100% 14.00 14.00 F I T 6.16 B a ht 25 yea rs 20% (14 – 25 yea rs) 0% (C I T 20 yea rs) 20.42% (WHT

• n

a llo c a tio n) 0% (yea r 0 – 8) 20% (yea r 9 – 25) B io m a ss Po w er Pla nt (B SW) T SE Develo p m ent 49%* 6.00 4.60 F I T 4.24 B a ht

+ Pre mium 0.30 T HB (8 ye a rs)

20 Yrs 0% (yea r 0 – 8) B io m a ss Po w er Pla nts (OSC AR) T SE Develo p m ent 70% 19.80 17.60 F I T 4.24 B a ht

+ Pre mium 0.30 T HB (8 ye a rs)

15 Yrs 4 m ths 0% (yea r 0 – 8)

T

• ta l

360.57 298.42

1.00 F I T 5.66 B a ht 25 yea rs

Rema rks: * T

he C o m p a ny invests a t the initia l 49% o f reg istered c a p ita l a nd there w ill inc rea se to b e 100% o f reg istered c a p ita l a fter C OD 3 yea rs. 176.72 F I T 32 – 36 Yen 20 yea rs C o -o p era tive So la r PV F a rm s SV F ully Op era ted 100% 1.00 T ax R ate 5 yea rs w ith a uto m a tic renew a l Ja p a n So la r PV F a rm s T SI , T SO 5 o ut o f 8 und er

• p era tio n

97% 210.47 Pr

• je c t

O pe r ating Com pany Status Capac ity Powe r Pur c hase R ate T e nor

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Sun For The Future

POR T F OL IOS & DIVE R SIF I CAT I ON

T HAIL AND

Po rtfo lio = 121.70 MW PPA

JAPAN

Po rtfo lio = 176.72 MW PPA

Investment in T hailand

Sun For The Future

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Investment in T hailand

T SE ’S SOL AR PV F ARMS & SOL AR T HE RMALIN T HAIL AND = T OT AL 85.5 MW PPA

Sola r T he rma l = 4.5 MW (fully o pe rate d & COD in 2011) Solar PV F ar ms = 80.0 MW (fully o pe rate d & COD in 2014) Sola r PV F a rm = 1.0 MW (fully o pe rate d & COD in De c 2016)

(Go v’ t Se c to r & Co -Op So lar F arm)

T OT AL = 85.5 MW PPA

Sun For The Future

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Sun For The Future

T SE ’S SOL AR PV F ARMS & SOL AR T HE RMALIN T HAIL AND = T OT AL 85.5 MW PPA

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In partnership with

T SE ’S SOL AR PV ROOF T OPS IN T HAIL AND = T OT AL 14.0 MW PPA

Sun For The Future

Investment in T hailand

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Sun For The Future

T SE ’S SOL AR PV ROOF T OPS IN T HAIL AND = T OT AL 14.0 MW PPA

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T SE ’S BIOMASS POWE R PL ANT S IN T HAIL AND = T OT AL 22.2 MW PPA

Sun For The Future

Investment in T hailand

BSW OSW 1 OSW 2 L

• c a tion

Sura t T ha ni Na ko rn Sri T ha mma ra t Na ko rn Sri T ha mma ra t

Insta lle d Ca pa c ity

6.0 MW 9.9 MW 9.9 MW

Se lling Ca pa c ity

4.6 MW 8.8 MW 8.8 MW

Sc he me on Pur c ha se

• f E

le c tr ic ity

F iTSc he me (4.24 T HB/ kWh) F iTSc he me (4.24 T HB/ kWh) F iTSc he me (4.24 T HB/ kWh) (+ pre mium : 0.3 T HB/ kWh fo r 8 ye a rs)

SCOD

Q1/ 2018 Q2/ 2018 Q2/ 2018

R a w Ma te r ia l

Wo o dc hip Wo o dc hip Wo o dc hip 14

Sun F

• r T

he F uture

T SE ’S BIOMASS POWE R PL ANT S IN T HAIL AND = T OT AL 22.2 MW PPA

BSW OSW 1 OSW 2

15

Bo ile r & E SP Zo ne Co o ling T

• we r

Co o ling T

• we r

F ue l Sto ra g e Building F ue l Sto ra g e Building

Investment in Japan

Sun For The Future

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T SE ’S SOL AR PV F ARMS IN JAPAN

PV F a r m

Shima (1.25 MW) Sa kura (1.99 MW) T OYAMA

PV F a r m

Hike me (1.50 MW) F UKUI

PV F a r m

Jyo so (1.25 MW) Ryug a sa ki (1.75 MW) K uno (0.50 MW) IBARAKI

PV F a r m

Ha na mizuki (13.50 MW) ISHIKAWA

= T OT AL 176.72 MW PPA

Sun For The Future

Investment in Japan

PV F a r m

Oniko ub e (154.98 MW)

MIYAGI

17

# Com pa ny Pla nt T ype Pr

• jec t Site

I nsta lled Ca pa c ity (MW) Selling Ca pa c ity (MW) Feed- in- T a r iff L

• c a tion

COD

1 TSI PV Fa rm K uno 0.65 0.50 36 Ye n Ib a ra ki 18/ 8/ 2015 2 TSI PV Fa rm Shima 1.43 1.25 32 Ye n To ya ma 1/ 3/ 2016 3 TSI PV Fa rm Hike me 1.86 1.50 32 Ye n Fukui 1/ 4/ 2016 4 TSI PV Fa rm Ryug a sa ki 2.34 1.75 36 Ye n Ib a ra ki 1/ 9/ 2016 5 TSI PV Fa rm Sa kura 2.50 1.99 32 Ye n To ya ma 2/ 11/ 2016 6 TSI PV Fa rm Jyo so 1.43 1.25 36 Ye n Ib a ra ki Q2 2018 7 TSI PV Fa rm Ha na mizuki 17.50 13.50 36 Ye n Ishika wa Q1, 2019 8 TSO PV Fa rm Oniko ub e 182.76 154.98 36 Ye n Miya g i Q2, 2022

210.47 176.72 T

• ta l Ca pa c ity

Sun For The Future

T SE ’S SOL AR PV F ARMS IN JAPAN = T OT AL 176.72 MW PPA Kuno

0.5 MW

COD: Aug 2015

Shima

1.25 MW

COD: Ma r 2016

Hike me

1.50 MW

COD: Apr 2016

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Sun For The Future

T SE ’S SOL AR PV F ARMS IN JAPAN = T OT AL 176.72 MW PPA Ryugasaki

1.75 MW

COD: Se p 2016

Sakur a

1.99 MW

COD: Nov 2016

Jyoso

1.25 MW

T a r g e t COD: Q2, 2018

Hanamizuki

13.50 MW

T a r g e t COD: Q1, 2019

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Sun For The Future

T a r g e t COD: Q2, 2022

Onikoube Pr

• je c t – 154.98 MW PPA Solar

Powe r Plant

20

T SE ’S SOL AR PV F ARMS IN JAPAN = T OT AL 176.72 MW PPA

F inanc ial

Highlights

Sun For The Future

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22

Sun For The Future

250 500 750 1000

2015 2016 2017

(mT HB)

Re ve nue E BIT DA NP

(mT HB )

2015 2016 2017 Revenue

766 1013 855

EBIT DA

600 776 612

Net Profit

527 618 416

0% 25% 50% 75% 100%

2015 2016 2017

Pr

• fitability Ratio (% )

E BIT DA Mar gin NP Mar gin 2015 2016 2017 EBIT DA Ma rg in

78% 77% 72%

NP Ma rg in

69% 61% 49%

Gro wing Po rtfo lio will b e g e ne ra ting ste a dy inc o me fro m stro ng b a se in so la r e ne rg y pro viding the upside fo r inve sto rs.

F inanc ial Hig hlig hts

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Sun For The Future

De spite e xpa nde d inve stme nts during 2016-2017 in a dditio na l a sse ts to he lp fa c ilita te g ro wth, financ ial

he alth is still o n tr ac k (D/ E

= 1.61 a s o f Ye a r E

nd 2017)

F inanc ial Hig hlig hts

2000 4000 6000 8000 10000 12000 14000

F Y2014 F Y2015 F Y2016 F Y2017

6881 4844 8375 12218

Asse ts

1000 2000 3000 4000 5000 6000 7000 8000

F Y2014 F Y2015 F Y2016 F Y2017

3394 804 3789 7438

L iabilitie s

500 1000 1500 2000 2500 3000 3500 4000 4500 5000

F Y2014 F Y2015 F Y2016 F Y2017

3487 4040 4563 4619

E quity

UPCOMING PR OJE CT S SCOD within 2018

Sun For The Future

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BANGSAWAN

Oscar 1 Oscar 2 JYOSO

“ T SE is c o mmitte d to g ro w po rtfo lio & re ve nue b y inve sting in se le c tive pro je c ts.”

PPA 4.6 MW (TSE100%) PPA 1.25 MW (TSE100%) PPA 8.8 MW (TSE70%) PPA 8.8 MW (TSE70%)

Q1, 2018 Q2, 2018 Q2, 2018 Q2, 2018

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Sun For The Future

F inanc ial Hig hlig hts

PV Fa rm - TH PV Fa rm - JP PV Ro o fto p - TH Bio ma ss PP

Re v e nue (mT HB/ MW ) 16 - 18 12 - 14 7 - 9 30 - 32 Gro ss Pro fit (mT HB/ MW ) 12 - 14 11 - 12 3 - 5 19 - 21 E BIT (mT HB/ MW ) 12 - 14 3 - 4 3 - 4 7 - 9 Ne t Pro fit (mT HB/ MW ) 10 - 12 2 - 3 2 - 3 6 - 8

PV Fa rm - TH PV Fa rm - JP PV Ro o fto p - TH Bio ma ss PP

Inv e stme nt Co st Pe r MW (mT HB) < 60 < 120 < 60 < 100 Output (1.XX) 1.41 1.18 1.22 90% Capac ity Fac to r FIT Pe r kW h (Base Rate ) 3.13 32-36 JPY 6.16 4.24 Adde r (T HB/ kW h) 6.5

• 0.30

Adde r T e no r (ye ars) 10

• 8

0% fo r Y1-Y8 GK

• T

K : CIT 27.45% o n 3% W HT 20.42% 0% fo r Y1-Y8 0% fo r Y1-Y8 20% fo r Y9 o nwards DI: CIT 27.45% o n 100% W HT 5% 20% fo r Y9 o nwards 20% fo r Y9 o nwards LT Financ ing Fac ility T e no r (Ye ars) 10 18 12 11.0 Inte re st Rate (% p.a.) < 6.00% < 3.00% < 6.00% < 6.00% De bt Po rtio n 75% 80% - 85% 75% 70%

Re sult pe r MW Va lua tio n Assumptio n

T ax Rate

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Sun F

• r

T he F utur e

Sun For The Future

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