ENERGY ABSOLUTE PUBLIC COMPANY LIMITED Investor Roadshow - - PowerPoint PPT Presentation

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“A leader in alternative energy business, by using the modern technology and environmentally friendly”

ENERGY ABSOLUTE PUBLIC COMPANY LIMITED Investor Roadshow Presentation 5 June 2020

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EA at a Glance Financial Highlights EA Business in Depth

Proposed Offering & Timeline

Agenda

1 2 3 4

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E@ at Glance

Established In 2006 to produce palm oil Core Business Energy (Renewable and Utilities) Secondary Market The Stock Exchange of Thailand since 30 Jan 2013 Credit Rating Corporate rating : A CG Rating Excellent Market Capitalization (as of 19/05/20) Approximately THB 148.27 bil. (US$ 4.63 bil.)

Somphote Ahunai (CEO), 43.61% Amorn Sapthaweekul (CFO) , 3.53% Domestic Fund, 11.35% Foreign Juristic, 18.90% Others, 22.62%

At 20 March 2020

Shareholder Structure

Total Board Members = 11

Independent Directors = 6 (55%) Executive Directors = 2 (18%) Other Non - Executive = 3 (27%)

ESG Rating

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Highlight of Operating Performance

Q1/2020 FY2019

Net Profit Total Revenue

THB 4,761 mil.

increase 54% YOY

THB 14,955 mil.

increase 20% YOY

THB 1,452 mil.

increase 20% YOY

THB 6,082 mil.

increase 18% YOY

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Renewable Power Energy Storage Electric Vehicle Palm Oil Based Charging Network

(1) COD

• Solar 278 MW
• Wind 386 MW

(2) New Projects (1) Amita Taiwan 400 MWh (2) Amita Thailand 1 GWh (by 2020) (1) MPV car : Mine (2) Ferry (3) Bus & Truck (4) Other Related (1) B100 & Glycerin (2) Bio-PCM & Green Diesel (3) Other Related (1) Station (2) Equipment (3) Online App

“A leader in alternative energy business, by using the modern technology and environmentally friendly”

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EA at a Glance Financial Highlights EA Business in Depth

Proposed Offering & Timeline

Agenda

1 3 4 2

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Total Revenue of Q1/2020

Revenue for Q1/2020 period increased from Wind Power and Biodiesel unit Total Revenue increased 54% YoY Total Operating Revenue increased 53% YoY

Biodiesel 29% Power 69% Others 2% Biodiesel 39% Power 59% Others 2%

Q1/2020

787 885 982 1,860 3,511 3,678 1,839 2,120 3,047 2,766 7,681 10,974

130 80 55 106 360 235

• 2,773 3,088 4,109 4,761

12,490 14,955

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 Q4/2018 Q1/2019 Q4/2019 Q1/2020 2018 2019

Mil.bt.

Accounting gain Other revenue Other Businesses Power BiodieselGlycerin

• Amount of revenue contributed from power business

is increasing YoY after completion of 260 MW wind power, Hanuman Project.

• Stronger demand of B100 as required to use B10

caused the increase in B100 selling price 122% YoY.

Q1/2019

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Gross Profit of 1Q2020

Gross Profit Margin Q1/19 Q1/20

Biodiesel Business

2% 5%

• Higher demand of CPO from the government measurement

announcing B10 to be used as regular diesel while there was shrunk from drought in 2019.

• B100 specification change to Mono Glyceride content at 0.4% for

use as B10 caused price to increase. Power Business Solar Wind

82% 64% 82% 66%

• Increasing of power production was due to higher solar radiation.
• Revenue was fully recognized from Hanuman wind power project
• Increasing of power production from Hadkunghan wind power

plant due to strong wind compare to the last year.

Total GPM 52% 44%

1,629 2,436 2,075 5,888 8,442

13 67 91 212 51

(38) (126) (73) (216) (358)

1,604 2,377 2,093 5,884 8,135

(1,000)

• 1,000

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

Mil.bt. Power BU. Biodiesel BU. Others BU.

Q1/19 Q4/19 Q1/20 2018 2019

Note: Total Revenue and Net Profit are excluded Accounting Gain, Other Income, Gain/Loss from exchange rate.

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Total Expense & Net Profit of 1Q2020

Solar Gross Profit Increase

• Administrative expenses: for 1Q2020, were Baht 269 mil., increased by Baht 72 mil. From the personnel expense with new hiring of employee and executive were increased by Baht 41 mil. and

also Office expenses were Baht 24 mil. following the new business.

• Financial Cost: increased by Baht 170 million. This is mainly due to long term loan from financial institutions for payment of some part of supplier credits for Hanuman wind power plants project.
• FX Gain: Due to buying Forward for payment of supplier credits for Battery plant project

YoY

5,884 8,135 (81) (865) (14) 160 (1,386) 11 6,082 5,148

Gross Profit 2018 Gross Profit 2019 Selling Expense Admin Expense Share of Loss in investment FX Gain (Loss) Financial Cost Tax Net Profit 2019 Net Profit 2018

(Mil.Bt) YoY (Mil.Bt)

1,604 2,063 (20) (269) 24 (14) 36 (433) 1 1,452 1,211

Gross Profit Q1/2019 Gross Profit Q1/2020 Selling Expense Admin Expense Gain on remeasurement

• f financial

instrument Share of loss from investments FX Gain (Loss) Financial Cost Tax Net Profit Q1/2020 Net Profit Q1/2019

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Total Liability, Equity, D/E Ratio and Net D/E Ratio

13,429 24,547 30,118 29,786 39,690 45,353 47,619

5,897 8,510 11,389 14,744 19,518 24,866 26,422 2.28 2.88 2.64 2.02 2.03 1.82 1.80

1.82 2.25 2.14 1.57 1.16 1.41 1.21

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

• 20,000

40,000 60,000 80,000 2014 2015 2016 2017 2018 2019 Q1/2020 THB Mil.

Liabilities Equity D/E Ratio Net D/E

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Financial Cost and Payment Profile

Total Interest Bearing Debt

Current portion of Debentures & ST-Debt 13% Debentures 33% LT-Debt 54%

42,664

Mil.Bt.

3,000 4,000 1,500 1,500 3,000 4,000 1,467 2,272 5,215 3,506 3,355 2,660 2,074 1,386

4,467 6,272 6,715 3,506 4,855 2,660 5,074 1,386

• 4,000
• 3,000

6,000 9,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Mil.Bt.

Bond LT-Loan

A

Interest Rate

Short Term Debt: 1.50 – 4.53% P/N: 1.41 – 3.50% Long Term Debt: 3.00 – 3.80% Bond: 2.09 – 3.15%

On 16th October 2019, EA issued THB 3 billion 7-year bond to ADB with 2.744% interest and was certified by CBI to be green bond.

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Capital Investment in 2020-2021

B100 562 3% GD&PCM 800 5% Power 260 2% Charging 430 2% EV Car&Bus 3,358 19% E Ferry 1,390 8% Battery Factory 5,196 30% R&D 91 1% Property Dev., 5,130 , 30%

THB 17,217 mil.

Investment Plan in 2020-2021

Investment Plan Progress / Target

Biodiesel Business B100 : To invest in palm oil and related business GD&PCM : New plant will start commercial operation in Q3/2020 Battery Factory (Thailand) Phase l to be completed in Q4/2020, then expand in 2021 Electric Ferry (42 units) 2 units are to be operated in Q2/2020, 40 units will be completed in Q1/2021 EV Car & Bus EV Car : Start delivering 5,000 cars from Q4/2020 to Q4/2021 EV Bus : Start investing Q3/2020 EV Charging Achieved 400 Stations from 52 provinces in June 2020 and expanding to nationwide Property Development To invest 19% stake in Land Prosperity Holding Power Improve efficiency and maintenance

Cash sh from

• m the

he be beginn nning 2020 020 THB B 10,02 029 9 mil. Opera Operating g Cash sh in Flow

• w in

n 2020 020 (fore

• recast)

THB B 10,00 000 0 mil. Issu ssue e of Deben enture res s (App ppro rove ved from

• m AGM

GM 2020 20) THB B 15,00 000 0 mil.

Sources of Fund

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Financial Highlights EA Business in Depth

Proposed Offering & Timeline

Agenda

2 4

EA at a Glance

1 3

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134 175 188 152 174 158 193 50.2 49.8

25.00 28.60 30.99 35.07 24.18 20.17 17.69 16.27 36.15 0.00 10.00 20.00 30.00 40.00 100 200

300

2013 2014 2015 2016 2017 2018 2019 Q1/19 Q1/20 Sales Volume Avg Price

Biodiesel Production

Location

Kabinburi Industrial Estate, Prachinburi under BOI promotion & privileges

Plant Capacity

• Biodiesel 800,000 Liters per day
• Pilot production of green diesel/PCM 1 Ton per day
• Refined Glycerin 80 Tons per day (by product)
• B100 volume in Q1/20 = 49.8 mil.liters decreased 0.8% as compared to last year but the average

selling price increased 122.2% from the announcement B10 to be used instead of B7

• Glycerin volume in Q1/20 = 3.77 mil.kg. decreased 0.03% as compared to last year and the

average selling price decreased 26% due to the high competition in domestic and export market.

Mil.liters Baht/liter

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Palm oil Market in Thailand

• 100,000

200,000 300,000 400,000 500,000 600,000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec19 Jan 20 Feb 20 Mar 20

B100 Food and others Domestic Consumption Stock

Unit : Ton

Source: Department of Internal Trade, Thailand

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Biodiesel Business with advance technology of GD & PCM

CPO Purification Green Diesel & PCM Production (38 : 62) B100 & Glycerin Production Glycerin B100 Green Diesel PCM Sell to major oil refinery companies Sell to pharmaceuticals , Cosmetics, Personal products Advance product of biodiesel Enhancing diesel engine capacity BioPCM works as a thermal storage battery good for energy saving

Export Market Domestic Market

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New Plant for Green Diesel & PCM Production

COD

• HNM 1 & 8 = 90 MW 25 Jun 19
• HNM 5 = 48 MW

22 Mar 19

• HNM 9 = 42 MW

30 Mar 19

• HNM 10 = 80 MW

13 Apr 19 Adder 3.50 baht/kwh Technology from Siemens Gamesa, Spain

EA Solar Lampang (90 MW) EA Solar Nakornsawan (90 MW) EA Solar Phitsanulok (90 MW)

Renewable Power Production 664 MW

EA Wind Hadkanghun (126 MW)

(Songkla & Nakornsri tammarat)

EA Wind Hanuman (260 MW)

(Chaiyaphum)

EA Solar Lopburi (8 MW)

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Renewable Energy Production

153 171 140 162 155 602 627

75 58 92 67 83

292

293

25 107 185

152 115 469 253 336 417 381 353 894 1,389

200 400 600 800 1000 1200 1400 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 FY18 FY19

Mil.kWh

Solar HGH HNM Solar 42% Wind 58%

664 278 MWh

386 MWh

+ 90MW Nakornsawan + 8MW Lopburi

278 278 278 278 126 126 386 386

8 98 98 188 278 404 404 664 664

200 400 600 800 2012 2013 2014 2015 2016 2017 2018 2019 2020 MWh

+ 90MW Lampang + 90MW Phitsanulok + 126MW Had Kanghan (Songkla & Nakornsri tammarat) + 260MW Hanuman (Chaiyaphum)

Total Capacity Output Production

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Energy Storage System : Core Technology for New Businesses

1 GWh

Phase I Next Phase

50 GWh

EV Charging Station Electric Ferry (E-Ferry) Electric Vehicle (EV) Energy Trading System Energy Storage System (ESS)

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New era of Advance Technology ESS

Energy Storage System for a small renewable power plant Battery for E-Scooter

• Started investing in Amita Technologies Inc., Taiwan in

Dec 2016 current shareholding = 74.71%

• Amita Technologies Inc. was established in March

2000 to produce lithium-ion power battery with strong material science research and long test data accumulation supported by ITRI.*

• Main Businesses
• High Power Battery for EV, E-Scooter, Power Plant
• OEM (Original Equipment Manufacturer)
• PDCA- Post Dry Cell Battery
• Turnkeys of High Technology Battery Factory for EV in

Beijing

• Current production capacity and capability : 44Ah

power battery cell over 400MWh per year

* ITRI, a nonprofit R&D organization of Taiwan, who played a vital role in Taiwan's economic growth, strengthen capabilities of innovation and cooperation with international partners all over the world.

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Amita’s Products and Application

Cell

Hard & Soft pack Energy Storage System

E-Bank

Camcorder Accessories Model No. AMITA 20FT-ESS Typical Capacity 0.5-1.5MW Cycle Life 6,000 (NMC)▕ 20,000 (LTO) Voltage 48-820V

Versatile Stationary Battery System with High Safety & Manageability for Industrial, Commercial, Power System Lithium–titanate Battery (LTO) Cell Fast-charging >10C Ultra Lifespan >20,000 Cycles Non-burning and Safety Features

MIN INE Mobil ility

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Electric Ferries

To prove the high safety of battery system

Using our 800-KWh Lithium-ion battery capacity to modernize and make a cleaner and safer transportation for our community including tourist who travel along Chao Phraya River, which is one of the most impressive tourist destinations in Bangkok. The electric ferry is designed by our own team and using

• ur technology.

Battery 30kWh 12 mins with DC Charger for 200 km.

Compatible with all EV Brands

Battery: 30 kWh

Lithium Ion : NMC With STOBA Water cooling less humidity (Short circuit cause)

Charging

CCS Combo type2 (EU) Home Charge AC charge & DC Fast charge (80% 12 mins) with EA Anywhere Charger

22/150 kW AC/DC Combo Charger

EA ANYWHERE Applic licat atio ion Availab ailable le now

Hom e Favorit e Calend ar Payme nt Promoti

• n

Repo rt Log in Hel p Setting About us

Owner Application Features:

Users Traffic Energy usage Chargers Status Billing System Station Report

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EA Anywhere – Charging Stations

Opening 384 stations

• BKK 185 stations
• Up-country 52 provinces

with 199 stations

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Our Target in Y2020

602 627 289 293

469

891 1,389 73% 79%

0% 20% 40% 60% 80% 100% 500 1000 1500 2000

2018 2019 F2020

Mil.MW

Solar Wind-HGH Wind-HNM GP (%)

174 162 193

24 20 18

5 10 15 20 25 30 200 400

2017 2018 2019 2020 Mil.liters

Avg.Price/Unit

As the government promotes to use B100 to be increased to 10% (from 7%), the volume and price would increase. Wind power production will increase according to full year operation.

Biodiesel Renewable Power

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Our Target in Y2020

Electric Vehicle Car : MINE E-Ferry

180 1000 2000 3000

Q4/20 Q1/21 Q2/21 Q3/21 Q4/21

• No. of EV

EV production is going to start in Q4/2020 and ramp up to complete delivery of 5,000 units by 2021. 10 20 30 Q2/20 Q3/20 Q4/20 Q1/21

• No. of E-Ferry

The two pilot E-Ferries will start operation in Q2/2020, followed by the next 24 units within 2020 and the rest in 2021. Total 5,000 cars Total 42 units

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EA Investment through EA Mobility Holding (EMH) EMH

Subsidiary of

670 mil. Shares = 40%

• To jointly invest in quality development,

manufacturing, assembling, and distributing, including the sales and aftersales services of buses, commercial vehicle, and private vehicles.

• EMH will submit the request for waiver from

mandatory tender offer by resolution of NEX shareholders’ meeting (Whitewash).

• Working capital 500 – 600 MB.
• Bus business and related 1,520 MB.
• Loan payment 30 MB.
• Others investment 200 MB.

At 2.20 bath per share

• Mr. Boonaue Jittanom

100 mil. shares

• Mr. Kanit Sriwachiraprapa

300 mil. shares Established

In 1997 to produce high precision electronic parts

Core Business

Manufacturing and selling electronic parts and Buses and related service

CG Rating

Excellent

Objectives of the capital increase

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Financial Highlights EA Business in Depth

Proposed Offering & Timeline

Agenda

4 2 3

EA at a Glance

1

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Investment Highlights

“A leader in alternative energy business, by using the modern technology and environmentally friendly”

Robust cash flows from the power business & Consistent operating performance

Power plants remains smooth and consistently beats the benchmark of P50

Diversification into non-power generation businesses

EA also invests in other battery and new electric vehicle (EV) ferries and EV cars

Sound financial profile & Adequate liquidity

Leverage is expected to stay at fair level for the next years

A leader in alternative energy business

EA uses the modern technology which is environmentally friendly and aligns with national PDP, to yield the optimal benefit all stakeholders

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Indicative Structure for EA Debentures (1/2020)

Issuer Energy Absolute Public Company Limited (“EA” or the “Issuer”) Joint Lead Arrangers KASIKORNBANK Public Company Limited (“KBANK”) and Government Savings Bank (“GSB”) Debenture Type Thai Baht Unsubordinated and Unsecured Debentures with Debentureholders’ Representative Offering Type Private Placement to Institutional and/or High Net-Worth Investors (PP – II&HNW) Company Rating A/Stable by TRIS Rating Co., Ltd. as of 19 May 2020 Issue Rating [A-]/Stable by TRIS Rating Co., Ltd. Use of Proceeds For refinancing maturing EA debentures (EA207A) and/or working capital Total Issue Size THB [●] million + Greenshoe option Tenors [●] years [●] years [●] years [●] years Coupon Payment Semi-Annually Principal Repayment At Par Value, Bullet at the Maturity Date Key Covenants The T&C is modified to be in line with new SEC’s requirement and those of the recent EA’s debentures in 2019 Financial Covenant Net Interest Bearing Debt to Equity* shall not exceed 3.5x; the ratio is to be tested annually DHR Kiatnakin Bank Public Company Limited (“KK”) Registrar KASIKORNBANK Public Company Limited (“KBANK”) Registration Thai Bond Market Association (“ThaiBMA”)

*Please see the draft terms and conditions of the Debentures submitted to the SEC for more details

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Debentures Issuance Timeline

Subscription Period Bookbuild Date

5 Jun 2020 [1 July] 2020

Group Roadshow

[●] 2020 [●] 2020

Investor Roadshow Bookbuilding date Subscription period First Filing Submission Issue date

4 Jun 2020

Disclaimer

This presentation contains summary information about Energy Absolute Public Company Limited (“EA” or “the Company”) and its subsidiaries as at 31 March 2020 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentation contains forward looking statements that may be identified by use of words such as “anticipates,” “hopes,” “expects,” “estimates,” “intends,” “projects,”“plans”, “predicts,” “projects”, “aims” or other similar expressions that are used to identify such statements. Forward looking statements are based on certain assumptions and expectations of future events. No guarantee nor assurance is made that these assumptions and expectations are accurate or will be realized. Such forward looking statements should be considered with caution, since actual results may differ materially from those expressed or implied by such statements. The information in this presentation were obtained from various external sources which has not verified through any independent source. No representation or warranty, either express or implied, is made regarding the accuracy, completeness, correctness, reliability, or scope of the information and disclaim all responsibility and liability for the information (including, without limitation, liability for negligence). This presentation is provided for the sole purpose of enhancing understanding of the Company and should not be construed as a legal, tax or investment recommendation or any other type of advice. The Company does not provide any representation, warranty, endorsement, or acceptance, about opinion or statement of any analyst s or other third parties; or the use of any such opinion, or statement of any analysts or other third parties. This document is strictly confidential and being given solely for your information and may not be shared, copied, reproduced or redistributed to any other person in any manner.