Gunkul Engineering Public Company Limited Opportunity Day 12 - - PowerPoint PPT Presentation

Gunkul Engineering Public Company Limited Opportunity Day

12 September 2018

Strictly Private and Confidential

Content

• I. Company Overview
• II. Financial Highlight
• III. Investment Highlights
• IV. Industry Outlook
• V. Projects Update

2

Section I: Company Overview

Strictly Private and Confidential

Gunkul Engineering PLC (“Gunkul”) operates across the entire renewable energy value chain

• Founded in 1982 as an electrical equipment trader. Gunkul later

expanded into manufacturing, EPC business, and filed for IPO in 2010 to grow its renewable generation business

• Trader, manufacturer and EPC contractor: Complete value chain

business model provides end-to-end solution in the development

• f renewable energy projects
• Renewable

energy power producer: Power projects with contracted capacity(1)

• f

546.1 equity MW in Thailand, Myanmar, Japan and Malaysia (approx. 64% solar, 34% wind, and 2% gas). As of Q2 2018, we have ~282.7 equity MW in

• peration
• Approx. US$ 665.92 Million market capitalization as of 31 July

2018 (SET:GUNKUL

Notes: (1) Including operational, under construction, and secured pipeline. (2) As of July 2018 (3) Gunkul Group is a holding company with the Dhumrongpiyawut family owning 99.6% of the Group (4) Dhumrongpiyawut family accounts for 54.0% of Gunkul

Reliable manufacturer and supplier of over 5,000 electrical equipment and products

1 2

World-class renewable energy projects with a visible and robust pipeline across Asia

3

Reputable one-stop renewable energy EPC and O&M service provider with over 15% market share in Thailand

Gunkul Shareholders(2)

Gunkul Group(3) (4) 49.8%

• Mr. Gunkul Dhumrongpiyawut

4.2% UOB Kay Hian (HK) 2.9% Others 37.4% Siam Commercial Bank 3.1% Thai NVDR 2.2% Bua Luang Long Term Equity Fund 2.2% Disconnecting Switch Arrester SF6 gas switch Low-voltage switch

Gunkul Overview

4

Strictly Private and Confidential

From Equipment Trading to Renewable Energy

Secured PPA for 60MW Wind Energy Development (WED) Secured PPA for 30.9MW Gunkul Chubu Powergen (GCPG) Founded as an electrical equipment trader

1982

Set up factory for manufacturing

1992 2010

Initial Public Offering Entered into renewable energy sector as EPC and O&M contractor 1st solar project 1st wind project

2012

1st gas engine power plant 25MW gas engine power plant in Myanmar (GKMCP)

2013

Expanded into solar roof business along with reputable partners Solar roof business

2014

Solar PV module manufacturing 1 of 4 manufacturers in Thailand producing solar PV modules under Thai Industrial Standard

2015

100

2011

Wind project MOU in Myanmar Signed MOU with Myanmar Ministry of Electric Power to develop 1,000MW Wind Project Supplied and set up Thailand’s first wind turbine for EGAT

Gunkul transformed itself from a trading company with volatile earnings to a renewable energy player that has stable cashflow and high margins Gunkul’s EBITDA from Renewable Power is Expected to Increase from 86% in 2017 to 88% and 92% by 2018 and 2019

Note: Based only on the secured 513.1 equity MW in our portfolio and only 371.3MW to be COD by 2019 Target to achieve 1,000 contracted equity MW by 2020

1st Japan Solar Project 31.8MW solar power plant in Japan (Sendai)

2017 2018

5

1st Solar Rooftop Private PPA Structured the Solar Rooftop business to be Private PPA which the off- taker are reputable companies 1st Malaysia Solar Project 29.99 MW or 20.99 Equity MW solar power plant in Malaysia

86% 14% 89% 11% 92% 8%

2017 EBITDA Breakdown 2018F EBITDA Breakdown 2019F EBITDA Breakdown

Renewable Power Generation Trading & EPC

Strictly Private and Confidential

High Quality Renewables Asset Portfolio

6 THAILAND MYANMAR MALAYSIA

Solar Farm ( 96.1 MW) Fully COD ( 6 Projects) Total Gross / Equity (MW) 157.9 / 96.1 Wind Farm ( 170.0 MW) Fully COD ( 2 Projects) Total Gross / Equity (MW) 120.0 / 120.0 Under Construction ( 1 Project) Total Gross / Equity (MW) 50.0 / 50.0 Solar Rooftop ( 2.8 MW) Fully COD (9 Projects) Total Gross / Equity (MW) 5.5 / 2.8 Private PPA Solar Rooftop ( 36.3 MW) Fully COD ( 1 Project) Total Gross / Equity (MW) 1.0 / 1.0 Under Construction ( 3 Projects) Total Gross / Equity (MW) 35.3 / 35.3 Gas-Fired Plant ( 12.8 MW) Fully COD ( 1 Projects) Total Gross / Equity (MW) 25.0 / 12.8

JAPAN

Type Scheme Thailand Japan Malaysia Myanmar Total Feed in Tariff 68.9 207.1 21.0

• 297.0

Adder 27.2

• 27.2

Feed in Tariff

• Adder

170.0

• 170.0

Feed in Tariff

• 12.8

12.8 Adder

• Feed in Tariff

2.8

• 2.8

Adder

• Private PPA

36.3

• 36.3

Total 305.2 207.1 21.0 12.8 546.1

Solar Farm ( 207.1 MW) Under Construction ( 4 Projects) Total Gross /Equity (MW) 207.1 / 207.1 Solar Farm ( 20.99 MW) Under Construction ( 1 Projects) Total Gross / Equity (MW) 29.99 / 20.99 Note: (1) The figure is as of 16 Aug, 2018

Strictly Private and Confidential

Gunkul will continue to grow in Renewable Business to transform itself into a company with stable income and high margin

Vision: To Become an Asia’s Leading Renewables Company

7

Expand EPC business into Transmission Line & Substation sectors which support Thailand Electrical System By 2020, step to secure 1,000MW by increasing capacity through domestic and international Enhance Company’s Growth by entering into a Private Producer Segment Embrace new technology to drive growth and expose new

• pportunities to invest in next step, including small scale

customers

PEA

PEA’s Outstanding Project (2019-2023) in Transmission Line & Substation

169,305 THB Million (1)

• Reputable Department Stores
• Industrial / Companies

Notes: (1) https://www.pea.co.th/Portals/0/Document/cpd/60-4%20PEA%20Website.pdf Smart Living by Gunkul

1. 2. 3. 4.

Total (MW)

Existing (MW) Potential deal (MW)

472

272 200

207

207

• 121

21 100

100

• 100

113

13 100

Others

Section II: Financial Highlights

Strictly Private and Confidential

Mainly decrease in accounts receivable and inventory due to the decrease in EPC service revenue

3,121 3,360 8,590 9,749 9,803 9,385 212 447 484 463 592 663 178 20 3,369 8,562 13,516 19,553 663 1,151 2,442 2,000 3,310 2,489 405 2,261 3,930 4,822 3,157 3,031 3,257 4,654 12,641 19,523 24,991 29,771 1,098 1,078 2,678 3,605 4,338 3,958 225 1,507 3,497 2,468 1,049 1,392

4,580 4,580 7,239 7,239 18,815 18,815 25,596 25,596 30,377 30,377 35,122 35,122

0.19x 0.68x 0.85x 1.37x 1.70x 2.41x

10,000 20,000 30,000 2013 2014 2015 2016 2017 2Q2018 0.19x 2.4x 0.68x 0.85x 1.37x 1.70x 0.8 1.0 1.2 0.8 1.0 0.8

Total Assets, Liabilities, and Equities

THB MM Non-Current Assets Other Current Assets Cash Current Debt Other Current Liabilities Non-Current Debt Other Non- Current Liabilities Total Interest Bearing Debt / Equity (times) Total Equity IBD / Equity Current Ratio

Financial Position

Assets Liabilities &Equity Assets Liabilities &Equity Assets Liabilities &Equity Assets Liabilities &Equity Assets Liabilities &Equity Assets Liabilities &Equity

9

Strictly Private and Confidential

Breakdown by Business Unit

63% 50% 85% 42% 35% 49% 14% 31% 1% 1% 1% 27%

868 541 674 615 712 359 1,000 2,000 3,000 4,000 5,000 6,000 2013 2014 2015 2016 2017 6M 2017 6M 2018 Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit 2,976 3,367 4,460 4,855

35%

21%

44%

2,767 2,194

24%

42%

34% +749

THB MM 54% 42% 24% 18% 22% 15% 39% 19% 38% 22% EBIT Margin Net Profit Margin 36% 15% Decrease in EPC service revenue while EBITDA Margin and Net Profit Margin include Gain on disposal investment in Gunkul Chubu Powergen (“GCPG”) Decrease in Trading Revenue while Power Generation Revenue, which has higher EBITDA Margin and Net Profit Margin, has increased 2,045

32% 43% 25%

33%

13%

Revenue Breakdown & Earnings

Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit

10

67

816

29.5%

52%

*Normal Operation

478 1,436

Strictly Private and Confidential

Breakdown by Business Unit

63% 50% 85% 42% 35% 49% 14% 31% 1% 1% 1% 27%

868 541 674 615 712 359 1,000 2,000 3,000 4,000 5,000 6,000 2013 2014 2015 2016 2017 6M 2017 6M 2018 Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit 2,976 3,367 4,460 4,855

35%

21%

44%

2,767 2,194

24%

42%

34%

THB MM 54% 42% 24% 18% 22% 15% 39% 19% 31% 16% EBIT Margin Net Profit Margin 36% 15% Decrease in EPC service revenue while EBITDA Margin and Net Profit Margin include Gain on disposal investment in Gunkul Chubu Powergen (“GCPG”) Decrease in Trading Revenue while Power Generation Revenue, which has higher EBITDA Margin and Net Profit Margin, has increased 2,045

32% 43% 25%

17%

2%

Revenue Breakdown & Earnings

Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit

11

67 688 478

Strictly Private and Confidential

286 275 601 177 327 534

325 363 148 142

• 100

1,000 Q2 2017 Q2 2018 Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit

Comparison of QoQ

THB MM 1,242 1,084

Q2 2017 vs Q2 2018

Revenue EBIT Net Profit Revenue EBIT Net Profit 275 177 534 467 (+44%) 246 (+66%)

• 100

1,000 Q2 2018 Revenue EBIT Net Profit THB MM

Normalized EBIT and Net Profit

Excluding Loss

• n exchange

rate of 104 MB 26% 12% EBIT Margin Net Profit Margin 33%

13%

43%

23%

EBIT Margin Net Profit Margin

12

1,084 (-13%)

Strictly Private and Confidential

516 554 871 1,163 723 918

688 478 359 67 1,100 2,200 6M 2017 6M 2018 Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit

Comparison of 6M2018 and 6M2017

THB MM 2,194 2,767

6M 2017 vs 6M 2018

Revenue EBIT Net Profit Revenue EBIT Net Profit 554 1,163 918 1,227 (+78%) 816 (+127%) 1,100 2,200 6M 2018 Revenue EBIT Net Profit THB MM 2,767 (+26%)

Normalized EBIT and Net Profit

Excluding one-off expense from Cancellation Fee and Loss on exchange rate

31% 16% EBIT Margin Net Profit Margin 17%

2%

44%

29%

EBIT Margin Net Profit Margin

13

Strictly Private and Confidential

2017-2019 Forecasted Revenue & EBITDA

14

4,855 6,050 7,560 1,944 3,300 4,500

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 2017* 2018** 2019** Revenue EBITDA

(+25%) (+25%) (+70%) (+30%)

* Fully booked in 2017 ** These projections are based on the information as of May 2018

Section III: Investment Highlights

Strictly Private and Confidential

Solid Growth Potential for Renewable Energy in Thailand

16

1

Electricity Consumption will Continue to Outstrip Generation Growth in Renewable Energy Capacity

Looking toward 2036, solar power plays a significant part in the growth of renewable energy at 4.4% p.a. while the wind power demonstrates the strong development at 8.8% p.a.

Solar, 48.3% Biomass, 31.2% Wind, 11.0% Biogas, 5.8% Waste, 3.4% Solar 36.7% Biomass 34.1% Wind 18.4% Energy Crops, 4.2% Biogas 3.7% Waste 3.1%

2036 16,352 MW3

2017 5,529.0 MW2

Source: Ministry of Energy, Thailand 182.5 188.5 196.1 203.5 210.8 218.1 225.3 232.9 185.5 192.3 199.1 207.2 214.9 222.4 230.6 239.6 Generation Consumption Source: BMI Research Source: PDP 2015, Thailand 12.0% 12.0% 16.4% 17.5% 19.3% 2017 2020F 2025F 2030F 2036F Combine Cycle Hydro Renewable Thermal Cogeneration

• ther

Generating Capacity By Power Plant Types (MW) Thailand Electricity Generating and Consumption (TWh) 46,1091 54,141 60,403 63,037 70,335 Note: (1) The sum of EGAT capacity and VSPP Note: (2) The total number is retrieved the sum from EGAT, IPP, SPP and VSPP, retrieved from ERC, (3) The number comes from PDP

Strictly Private and Confidential 17

Fast Growth in Renewable Energy Sector Supported by Favorable Government Policies

2

Source: Japan’s Energy Plan, Ministry of Economy, Trade and Industry, Sustainable Energy Development Authority Malaysia, The Eleventh Malaysia Plan, Vietnam Power Development Plan for the period 2011-2020, Highlights of the PDP 7 revised, by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Japan’s Energy Plan, 2015 The Eleventh Malaysia Plan,2015 and National Renewable Energy Policy & Action Plan, 2009 Power Development Plan7, Revised 2015 To increase the domestic energy dependency rate from 6.1% in 2013 to nearly 25.0% in 2030 Promote the green growth by establishing the supportive financing mechanisms Provide adequate electricity for the growing demand through the construction of the power transmission grid Promote the use of renewable energy to account for 22.0-24.0% in 2030 Increase the share of renewable energy in electricity generation from 556MW in 2017 to 3,484MW (13.0%) by 2030 Prioritize the use of renewable energy from less than 1% in 2016 to more than 10% in 2030 Promote the generation from

• solar: to 7.0% and
• Wind: to 1.7% of the total

generating capacity Promote the generation from

• solar: from 372MW in 2017 to

854MW (3.2%) by 2030 Promote the generation from

• solar: from negligible level to

12,000MW (3.3%) and

• Wind: from 140MW to 6,000MW

(1.0%) of the total generating capacity

Strictly Private and Confidential 18

Track Record of Accelerated Growth

3

15.8 10.4 1.0 12.8 2.8 58.3 10.0 50.0 2.6 1.0 50.0 282.7 31.8 33.5 8.0 2.6 60.0 1.1 0.5 33.7 21.0 66.8 75.0 546.1 200 400 600

GCPG COD 2011 GPS COD 2012 NK COD Q4 2013 GKMCP COD Q4 2013 Solar Rooftop COD Q2 2014 RNS COD Q4 2015 BMPS COD Q2 2016 WED Project 1 COD Q1 2016 WED Project 2 COD Q3 2016 ECO Q4 2016 Private PPA COD Q2 2017 GNP COD Q1 2018 KWE COD Q2 2018 Operational Capacity Private PPA COD Q4 2018 Sendai COD Q4 2018 Kimitsu COD Q4 2018 Private PPA COD Q1 2019 Private PPA COD Q2 2019 Kenyir Gunkul COD Q4 2019 Utsunomiya COD Q1 2022 Iwakuni COD Q1 2022 Total Equity MW

Solar Gas Wind

Gunkul demonstrated a track record of successful capacity build-up and this translates into more stable and recurring electricity revenue

Note: Source: Company Filings and Company Information Equity MW

Under Construction / Under Development (Q3 2018 – 2022) In Operation (2011 – Q3 2018)

Strictly Private and Confidential 19

Vertically Integrated Business Covering Downstream Segments of Renewable Energy

4 Trading and Manufacturing Engineering, Procurement & Construction Power Generation

Samples of In-House Products

Cable and accessories, capacitor, fuse and switch, grounding, hardware and connector, Insulator, lightning protection, live part cover, maintenance equipment, meter, preformed, tool and instrument, transformer Distribution Line Transmission Line Cable and accessories, fuse and switch, hardware and connector, insulator, lightning protection, maintenance equipment, tool and instrument Power Plant Wind turbine component, solar panel component Low Voltage Line Capacitor, explosion proof product, fuse and switch, grounding, hardware and connector, insulator, lightning protection, meter, preformed, street lighting and control, telephone hardware Substation Battery and charger, capacitor, grounding, maintenance equipment, meter, tool and instrument, transformer Low-voltage switch Cutout Arrester Disconnecting Switch SF6 gas switch

Gunkul’s Own Projects

“Allow Gunkul to exploit economies of scale and cost saving advantages”

Solar Wind Gas Engine

Geographical Diversification

Energy Mix

Thailand: 53% Japan: 41% Malaysia: 4% Myanmar: 3% Solar: 64% Wind: 33% Gas Fired: 3%

Note: Above pie charts demonstrate Existing Equity MW

Existing Power Plants Total Equity Capacity of 510 MW

546 MW (Equity) 546 MW (Equity)

Project Reference Project Owner MW EPC O&M 1) GPS 26.00

P P

2) GCPG 30.90

P P

3) NK Power Solar 1.00

P P

4) CK & Sun Solar Power Plant 8.00

P P

5) Solatra Solar Power Plant 8.00

P

6) BSE (NMA) 12.50

P P

7) BSE (CPM1) 12.50

P P

8) Solar Rooftop 26.78

P P

9) RNS 87.00 P 10) BMPS 8.00

P P

11) ECO 5.00

P P

12) WED (1) 60.00 P 13) GNP (1) 60.00 P 14) KWE(1) 50.00 P Total 395.68

Note: (1) Only Balance of Plant Part

Strictly Private and Confidential 20

Cost-savings by Rooftop Solar Private PPA

Year 1-20: Electricity charge will be paid to Gunkul at agreed purchase price

Year 1 2 … 20 21 … 24 25

At the end of year 20: Asset will be transferred to purchaser

Household Smart living by GUNKUL

Gunkul has expanded business further

• G-VISION
• G-SYSTEM
• G-SERVICE
• G-EXPERIENCE
• G-SMART

Private PPA between Gunkul and Purchaser

 PPA Life of 15-20 years  Electricity will be charged at discount rate

Capturing Untapped Potentials

• f Rooftop Solar & New Technology

5

Strictly Private and Confidential 21

Experienced Management Team Able to Deliver on Growth Targets

6 The Management team, who has successfully grown the Company to where it is today, is committed to achieving Gunkul’s growth targets

• 21-year expertise in manufacturing/ supplying electrical

products & renewable energy products, and generating electrical power from renewable energy resources

• Over 21-year experience with Gunkul
• CEO since 2012
• Managing Director 1998-2012

Miss Sopacha Dhumrongpiyawut Chief Executive Officer

• Mr. Thamrong

Chankraithong Senior Vice President, Sales & Marketing

• 24 years of experience in the power industry
• 24 years of experience with Gunkul
• Senior VP, Sales & Marketing since 2010
• Assistant General Manager, Public Sector and

International 2008-2010

• 12-year expertise in Renewable Energy business
• Over 12-year experience with Gunkul
• Leading Gunkul to Initial Public Offering in 2010
• Managing Director since 2012
• Deputy Managing Director 2010-2012
• Assistant Managing Director 2007-2010
• Dr. Somboon

Aueatchasai Managing Director

• Mr. Thitipong

Techaratanayuenyong Chief Financial Officer

• Over 17-year experience in financial management of

Thailand’s listed companies. 5 years of experience in the power industry

• Expertise in capital market and derivative products
• CFO and member of the Risk Management committee

and Secretary since 2014

• 14 years of experience in the power industry
• 10 years of experience with Gunkul
• Deputy Managing Director since 2016
• Assistant Managing Director, Business Development &

Strategic Planning 2014-2015

• Mr. Phongsakorn

Damnoen Deputy Managing Director Miss Naruechon Dhumrongpiyawut Assistant Managing Director

• 11 years of experience in the power industry
• 11 years of experience with Gunkul
• Assistant Managing Director since 2017
• Senior VP, Strategic Planning and Investment 2014-

2017

• Senior VP, Logistics since 2016
• VP, Strategic Planning and Investment 2012-2014
• 22 years of experience in the power industry
• 22 years of experience with Gunkul
• Senior VP, Factory since 2010
• Mrs. Areewan

Chaloemdan Senior Vice President, Factory

• 22 years of experience in the power industry
• 4 years of experience with Gunkul
• Senior VP, PM & OM since 2015
• Mr. Phairot

Phanukan Senior Vice President, Project & Operation Management

• 16 years of experience in the power industry
• 16 years of experience with Gunkul
• Senior VP, Human Resource and Administrator since

2010

• Member of Nomination and Remuneration Committee

since 2008

• Mrs. Somluk

Kanuenghet Senior Vice President, Human Resource and Administrator

• 26 years of experience in the power industry
• 12 years of experience with Gunkul
• Senior VP, Gunkul Energy Solution & Lighting since

2016

• VP, Logistics 2011-2015
• Mr. Phudis

Triwilaskul Senior Vice President, Gunkul Energy Solution & Lighting

• Founder and Chairman
• 36-year extensive experience in Energy

business

• First mover in Renewable Energy business
• Mr. Gunkul

Dhumrongpiyawut Chairman / Founder

Section III: Industry Outlook

Thailand

Strictly Private and Confidential

Mainly Operated by Governments through Different Entities

24

Source: Thailand Electricity Security Assessment 2016; IEA, The Electric Power System – Thailand -,International Council on Large Electric Systems, EGAT, Global Energy Network Institute, Thailand PDP 2015

Owned by states, Generating Authority of Thailand (EGAT) is the sole owner of the transmission lines all over Thailand, providing electricity to Bangkok and vicinity area through Metropolitan Electricity Authority (MEA) and suburbs through Provincial Electricity Authority (PEA)

Producers Consumer Distribution Transmission EGAT Transmission System (100.00%) MEA PEA EGAT Direct BKK, NBI and SPK1 Other Provinces SPP’s Direct BKK/ Rural EGAT (37.12%) IPPs (35.21%) Imports (9.14%) SPPs (18.53%) MEA/ PEA VSPPs Transmission Network 100%

State-owned enterprises

Market Players

Thailand Power Structure

Notes: (1) BKK, NBI and SPK refers to Bangkok, Nonthaburi province and Samut Prakarn province respectively

Strictly Private and Confidential

Thailand targets to have the Renewable Energy approximately 22 GW of The Energy Mix by 2036

Energy Target in PDP 2015 Composition of the Additional Capacity

Source: Thailand PDP 2015

Of the additional generating capacity generated domestically, solar power accounts for 36.3%, divided into 3,292.5MW in the first phase and another 1,107.6MW in the second phase, in total of 4,500.1MW

37.7% 30.4% 21.1% 10.8%

To ensure the reserve margin is not less than 15.0% of the power peak demand, forecasted to be 44,424MW in 2036, Thai government expects to have the additional generating capacity of 57,459MW during 2015-2036

37,612 70,335 57,459 24,736 2014 New 2015-2036 Retire 2015-2036 2036

22 GW will come from renewable energy, which

• 12 GW will be generated domestically
• 10 GW will be imported

Thermal Renewable Other Combined Cycle 36.3% 28.7% 21.0% 14.0% Solar power Biomass Wind power Other 3,293 2,123 1,644 1,042 4,400 3,487 2,554 1,694 Solar power Biomass Wind power Others

6

Expected Generating Capacity (MW) New Energy Composition (57,459 MW) Composition of Renewable Energy Planned Additional Capacity (MW)

Added 2015-2026 Total from 2015-2036

Japan

Strictly Private and Confidential

Launching the Energy Plan Toward 2030

27

Struggled with 3 challenges on the heavy dependency on importing fuels from overseas, high electricity cost and increasing amount of CO2 emission, Japanese government has decided to solve the problems by promoting the energy conservation and balancing the energy supply Three Energy Challenges

Heavy Dependency on Overseas Energy High Electricity Cost Large CO2 Emissions Issues Details Targets Solutions Rise from 80% in 2010 to about 94% in 2013 Higher than The Average OECD Price Increasing for 4 Years during 2010-2013 Less the rate to close to 75% Cheaper than The Current Cost Comparable with The EU and the US Energy Conservation Promotion

1

Balanced Energy Supply

(Increase the portion of renewable energy)

2

Source: Japan’s Energy Plan, Ministry of Economy, Trade and Industry

Japan’s Energy Plan

Strictly Private and Confidential

Promoting the Use of Renewable Energy

28

Source: Japan’s Energy Plan, Ministry of Economy, Trade and Industry Statistical data from Agency for Natural Resource and Energy

Japanese government has targeted to increase the renewable energy from 2.2% in FY 2013 to 12.8-15.2% in 2030, of which solar power will account for approximately 74.6GWh, growing 13.0% p.a. from FY 2013

80.0% 83.4% 56.0% 9.5% 1.6% 20.0% 2.6% 7.7% 14.8% 7.9% 7.3% 9.2%

FY2010 FY2016 2030 Thermal Nuclear Renewable Hydro

2

48.6% 31.9% 11.8% 7.6%

Solar Biomass Wind Geothermal Since the implication of FiT system in July 2012, the number of the installed capacity has been increasing at 49.2% p.a. to 49,040 MW in 2017

Source: International Renewable Energy Agency 2,144 2,627 3,618 4,914 6,632 13,599 23,339 34,150 42,040 49,040

32.6% 49.2%

To balance the energy supply, Japan promotes the use of renewable energy to be 12.8-15.2% by FY20301

Energy Mix Target for 2030 Trend in Solar Market

Energy Mix FY2010-2030 Composition of Renewable Energy in 2030

Notes: (1) Exclude the portion of hydropower (2) Thermal energy in 2030 refers to energy generated from LNG, coal and oil

Installed Capacity (MW)

Solar shares the most portion at 48.6% of the renewable energy

Malaysia

Strictly Private and Confidential

Targeting to have 3,484 MW of the Installed Renewable Energy Capacity By 2030

30

Source: Eleventh Malaysia Plan 2016-2020, International Energy Agency Insights Series 2016

Continuing from the 10th Malaysia Plan, which the Renewable Energy Act 2011 was enforced and the Feed-in-Tariff scheme was implemented, the eleventh plan is focusing on the green growth1 by creating green markets and increasing the share of renewables in energy mix

Notes: (1)According to the Eleventh Malaysia Plan, “green growth” refers to growth that is resource-efficient, clean, and resilient. (2) REDD stands for “reducing emissions from deforestation and forest degradation” (3) The target comes from National Renewable Energy Policy & Action Plan (4) The Sustainable Energy Development Authority

Main Area of Focus

1

2

3

4

Green Growth1 Sustainable Consumption & Production Natural Resource Climate Change Establish the financing mechanism Strengthen green certification Increase the share of Renewable Energy Capacity to 13% by 20303

202.4 49.4 12.8 8.9 1,340.0 854.0 410.0 390.0 2014 (285MW)

SEDA4 to train 1,740 personnel Implement net energy metering to support FiT

Action

Utilizing green tax, carbon tax and REDD2 in green financing systems Introduction of green rating systems

Details

2030 (3,484MW) Biomass Solar Biogas Solid Waste

The 11th Malaysia Plan 2016 – 2020 and The National Renewable Energy Policy & Action Plan

Strictly Private and Confidential

More growth in Solar Business in Peninsular Malaysia

31

SESB (Sabah) SEB (Sarawak) TNB (Peninsular Malaysia) Source: Peninsular Malaysia Electricity Supply Outlook 2017 Energy Commission, Department of Statistics, Malaysia 84.6% 11.3% 4.1% TNB SEB SESB

During 2006-2015, the

• verall

demand

• n

electricity has increased 5% p.a., which the portion from Peninsular Malaysia varies around 85%-90% due to 79% of the population residing in the area, Peninsular Malaysia plays the significant role in the market Malaysia power is supplied by three main utility companies, Tenaga Nasional (TNB) for Peninsular Malaysia, Sabah Electricity (SESB) for the state of Sabah and Sarawak Energy (SEB) for the state of Sarawak As outlined in the 11th Malaysia Plan to stimulate the renewable energy, the total licensed capacity of renewable enrgy has increased 7% to 392MW in 2016 where Solar PV shows the highest growth of 24%

Source: Peninsular Malaysia Electricity Supply Outlook 2017 189 235 124 89 30 34 23 34 2015 2016 Solar PV Biomass Mini Hydro Biogas

+24% 392 366

Power Supply in Malaysia Renewable Energy in Peninsular Malaysia

Total Electricity Sold Domestically in 2015 Renewable Energy Capacity Mix (MW)

Vietnam

Strictly Private and Confidential

Targeting to have Renewable Energy approx. 10,000MW By 2030

33

With the objective to prioritize the development of renewable energy by 2030, Vietnamese government has targeted the portion of the renewable energy, excluding the portion from small hydro, to reach 7.5%

• f the total installed capacity.

Source: Power Development Plan7,translated by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Highlight of the PDP7 Revised, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

From the installed capacity of nearly 43,000 MW in 2016, Vietnam government expects to grow by 7.7% per year to reach the installed capacity of 129,500MW, where the renewable energy will accounts for 7.5% in 2030

Biomass Wind Solar

Among the renewable energy, Solar PV has the highest growth from the negligible level in 2016 to 44.0% of the renewable energy in 2030, equivalent to approximately 4,270MW

21.7% 34.8% 43.5% 2020 (1,380MW) 42.1% 26.3% 31.6% 2025 (3,667MW) 44.0% 28.0% 28.0% 2030 (9,713MW) 2.3% 3.8% 7.5% 2016 2020 2025 2030 Coal Small hydro Renewable Large hydro Others 42,762 60,000 96,500 129,500

Composition of Electricity Composition of Renewable Energy

Installed Capacity (MW) Forecast on Renewable Energy

Strictly Private and Confidential

Numbers of Government Supportive Programs

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Source: Document on Vietnam’s Power Development Plan, General Directorate of Energy, Ministry of Industry and Trade Power Development Plan7,translated by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH An assessment of Vietnam’s new FiT and NEM regulation, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

To put the supportive policies into practice, Vietnam government has plan for the construction of the transmission system all over the country as well as the launch of the FiT system and other favorable policies

500kV Substation 220kV Substation 500kV Line 500kV Additional Line

Construct 500kV lines for the demand in the southern part and 220kV projects Maintain the power exchange with Lao, China and Cambodia Establish the FiT System and 220kV projects for 20 years at 9.35USct/kWh for the solar power project1

Note: The project must reach the commercial operation during 1 Jun 2017- 30 Jun 2019

The project using renewable energy shall have the priority to connect to the national power system Establish the Sustainable Energy Promotion Fund and provide the support for independent power generation projects

2016-2020 2021-2030 Power Source Grid Development 40bn 108bn 74.0% 26.0%

Investment in Grid Expansion

Transmission System Amount of Investment (USD)

75.0% 25.0%

Favorable Policies to Operators

Section IV: Projects Update

Strictly Private and Confidential

Wind Projects

Korat Wind Energy Installed Capacity : 50 MW COD : 20 June 2018 Greenovation Power Installed Capacity : 67.5 MW COD : 27 March 2018

Strictly Private and Confidential

GNP – Wind Project

Project : Sarahnlom Wind Farm Location : Huay Bong, Dan Khun Tod, Nakorn Ratchasima Contract Capacity : 60 Megawatts Turbine Capacity : 2.0 & 2.1 Megawatts (33 Wind Turbine Generators) Commercial Operation Date : 27 March 2018

Strictly Private and Confidential

GNP – Wind Project

Strictly Private and Confidential

GNP – Wind Project

Strictly Private and Confidential

GNP – Wind Project

Strictly Private and Confidential

GNP – Wind Project

Strictly Private and Confidential

GNP – Wind Project

Strictly Private and Confidential

GNP – Wind Project

The world's highest Tubular wind turbine

: overall height of 210 M

Strictly Private and Confidential

KWE – Wind Project

Project : Mittraphap Wind Farm Location : Don Muang and Nong Nam Sai, Sikhio, Nakorn Ratchasima Contract Capacity : 50 Megawatts Turbine Capacity : 2.5 Megawatts (20 Wind Turbine Generators) Commercial Operation Date : 20 June 2018

Strictly Private and Confidential

KWE – Wind Project

Strictly Private and Confidential

KWE – Wind Project

Strictly Private and Confidential

KWE – Wind Project

Strictly Private and Confidential

KWE – Wind Project

Strictly Private and Confidential

Sendai – Japan Solar Project

Sendai

Solar Radiation Map of Japan

Project Description

• Project Name

Sendai

• Location

Sendai, Japan

• Contract capacity

31.8 MW

• Installed capacity

38.1 MW

Project Milestones

• All Permit

Completed

SCOD : 1 November 2018

SENDAI

Strictly Private and Confidential

Sendai – Solar Project

Strictly Private and Confidential

Sendai – Solar Project (Southern area)

Overall installation

Strictly Private and Confidential

Sendai – Solar Project (Northern area)

Overall installation

Strictly Private and Confidential

Kimitsu – Solar Project

Solar Radiation Map of Japan

Kimitsu

Project Description

• Project Name

Kimitsu

• Location

Kimitsu, Japan

• Contract capacity

33.5 MW

• Installed capacity

40.4 MW

Project Milestones

• All Permit

Completed

• COD

1Q2019

KIMITSU

Strictly Private and Confidential

Kimitsu – Solar Project

PV module installation on steep slope (Zone 2 - Block 4) PV module installation (Zone 2 - Block 3)

Strictly Private and Confidential

Kimitsu – Solar Project

Strictly Private and Confidential

Kimitsu – Solar Project

Solar Rooftop & Solar Floating

Strictly Private and Confidential

Solar Rooftop Project

58

Strictly Private and Confidential

Solar Rooftop Project

59

Strictly Private and Confidential

Solar Floating Project

60

Strictly Private and Confidential

Disclaimer

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This presentation has been prepared by Gunkul Engineering Public Company Limited (“Gunkul”) for informational purposes only and does not constitute a recommendation regarding the securities of Gunkul or any of its subsidiaries. This presentation is not intended as, and does not form part of, any offer to sell or solicitation or invitation to buy or subscribe for any securities. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Gunkul makes no representation or warranty, either expressed or implied, in relation to the accuracy, completeness or reliability of the information contained in this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment without notice and such information may change materially. The information in this presentation should not be regarded by recipients as a substitute for the exercise of their own judgment. This presentation may contain forward-looking statements and estimates with respect to the future operations and performance of Gunkul, its subsidiaries and affiliates. These forward-looking statements are subject to various assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Gunkul. Such assumptions, risks and uncertainties could cause actual results and developments to differ materially from those expressed in or implied by the forward-looking statements. Neither Gunkul nor any of its directors, officers, employees, advisors or representatives assumes any responsibility to update any of the forward- looking statements to conform such statements to actual results or developments, to reflect the occurrence of anticipated results or

• therwise. Neither Gunkul nor any of its directors, officers, employees, advisors or representatives nor any other person accepts any

liability whatsoever for any loss, however arising, from any use of this document or its contents or otherwise arising in connection therewith. Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinions expressed by

• ther business areas or groups of Gunkul as a result of using different assumptions and criterion.

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