Gunkul Engineering Public Company Limited Opportunity day 14 June - PowerPoint PPT Presentation

Gunkul Engineering Public Company Limited Opportunity day 14 June 2018

Content I. Company Overview II. 1Q 2018 Financial Performance III. Business Update IV. What is next .. ? V. Projects Update Appendix 2 Strictly Private and Confidential

Section I: Company Overview

Gunkul Overview Gunkul Engineering PLC ( “ Gunkul ” ) operates across the entire renewable energy value chain ▪ Founded in 1982 as an electrical equipment trader. Gunkul later Reliable manufacturer and supplier of over 5,000 electrical expanded into manufacturing, EPC business, and filed for IPO in 1 equipment and products 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 of renewable energy projects Arrester Disconnecting Low-voltage SF6 gas switch ▪ Renewable energy power producer: Power projects with Switch switch contracted capacity (1) of 513.1 equity MW in Thailand, Reputable one-stop renewable energy EPC and O&M 2 Myanmar, Japan and Malaysia (approx. 64% solar, 34% wind, service provider with over 15% market share in Thailand and 2% gas). As of May 2018, we have ~232.7 equity MW in operation ▪ Approx. US$ 0.85 Billion market capitalization as of 17 May 2018 (SET:GUNKUL) Gunkul Shareholders (2) Others Thai NVDR 37.4% 2.2% Bua Luang Long Term World-class renewable energy projects with a visible and 3 Equity Fund robust pipeline across Asia Gunkul Group (3) (4) 2.2% 49.8% UOB Kay Hian (HK) 2.9% Siam Commercial Bank 3.1% Mr. Gunkul Dhumrongpiyawut 4.2% Notes: (1) Including operational, under construction, and secured pipeline. (2) As of May 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 4 Strictly Private and Confidential

From Equipment Trading to Renewable Energy Gunkul transformed itself from a trading company with volatile earnings to a renewable energy player that has stable cashflow and high margins 1 st Malaysia Acquired 65MW of solar projects in Japan Solar Project Target to Wind project MOU in Myanmar achieve 1,000 29.99 MW or Solar PV module manufacturing contracted 20.99 Equity MW Signed MOU with Myanmar Founded as an 100 solar power plant Ministry of Electric Power to 1 of 4 manufacturers in Thailand equity MW by electrical in Malaysia develop 1,000MW Wind Project producing solar PV modules under Thai 2020 Initial Public Offering equipment trader Industrial Standard 1982 1992 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 st wind project 1 st gas engine power plant 1 st Japan Solar Project 1 st Solar Set up factory Entered into renewable energy Acquired 13MW Q1 : COD GNP for sector as EPC and O&M of Solar projects Rooftop Private manufacturing contractor PPA Secured PPA for 25MW gas engine power 31.8MW solar power Q2 : SCOD KWE 60MW Wind Energy plant in Myanmar (GKMCP) plant in Japan (Sendai) 8MW solar power Supplied and set up Thailand ’ s Development (WED) plant (BMP Solar) Structured the Q4 : SCOD first wind turbine for EGAT 5MW solar power Solar Rooftop SENDAI & Solar roof business plant (ECO) business to be KIMITSU Private PPA Expanded into solar roof 1 st solar project which the off- business along with taker are reputable partners Secured PPA for 30.9MW reputable Gunkul Chubu Powergen (GCPG) companies Gunkul ’ s EBITDA from Renewable Power is Expected to Increase from 86% in 2017 to 89% and 92% by 2018 and 2019 2017 EBITDA Breakdown 2018F EBITDA Breakdown 2019F EBITDA Breakdown 14% 11% 8% 86% 89% 92% Note: Renewable Power Generation 5 Based only on the secured 509.8 equity MW in our portfolio and only 368.0MW to be COD by 2019 Trading & EPC Strictly Private and Confidential

Vertically Integrated Business Covering Downstream Segments of Renewable Energy Allow Gunkul to exploit economies of scale and cost saving advantages Trading and Manufacturing E ngineering, P rocurement & C onstruction Power Generation Transmission Cable and accessories, fuse and Project Reference Existing Power Plants switches, hardware and connectors, Lines Total Equity Capacity of 513 MW insulators, lightning protection, Project Owner MW EPC O&M maintenance equipment, tools and instruments P P 1) GPS 26.0 Low Voltage Capacitors, explosion proof products, P P fuses and switches, grounding, hardware Lines 30.9 2) GCPG and connectors, insulators, lightning protection, meters, preformed, street P P 3) NK Power Solar 1.0 lighting and control, telephone hardware 4) CK & Sun Solar P P Electricity Wind turbine components, solar panel 8.0 Power Plant components Plants 5) Solatra Solar Power P 8.0 Plant P P Substation Battery and chargers, capacitors, 6) BSE (NMA) 12.5 Solar grounding, maintenance equipment, Wind meters, tools and instruments, Gas Engine P P 12.5 7) BSE (CPM1) transformers 8) Solar Rooftop P P Geographical Cables and accessories, capacitors, fuse Distribution 11.0 Energy Mix Projects and switches, grounding, hardware and Lines Diversification connectors, Insulators, lightning P 9) RNS 87.0 protection, live part covers, maintenance Japan: 41% equipment, meters, preformed, tools and Solar: 64% P P instruments, transformers 10) BMP 8.0 Thailand: 53% Wind: 33% Examples of In-House Products P 11) WED 60.0 513 MW 513 MW P (Equity) (Equity) 12) GNP 60.0 P Cutout Disconnecting Low-voltage 13) KWE 50.0 Gas Fired: 3% Switch switch Myanmar: 3% Arrester SF6 gas switch Malaysia: 4% Total 374.9 Note: Above pie charts demonstrate Existing Equity MW Gunkul ’ s Own Projects Notes: (1) Excludes pipeline projects Strictly Private and Confidential

Section II: Financial Performance

Financial Position Total Assets, Liabilities, and Equities IBD / Equity 0.19x 0.68x 0.85x 1.37x 1.70x 2.00x 0.8 1.2 0.8 1.0 0.8 0.8 Current Ratio THB MM 33,388 33,388 1,399 30,377 30,377 3,856 30,000 1,049 4,309 3,157 2.00x 3,491 4,338 25,596 25,596 3,310 2,468 1.70x 4,822 Mainly decrease in accounts receivable and inventory due 3,605 to the decrease in EPC 20,000 18,815 18,815 1.37x 2,000 service revenue 15,669 3,930 3,497 13,516 8,562 2,678 27,680 2,442 0.85x 24,991 0.68x 3,369 10,000 592 587 463 19,523 7,239 7,239 484 1,507 12,641 2,261 4,580 4,580 1,078 1,151 9,749 9,803 9,785 225 405 8,590 20 663 1,098 447 0.19x 178 212 4,654 3,257 3,360 3,121 0 Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities &Equity &Equity &Equity &Equity &Equity &Equity 2013 2014 2015 2016 2017 1Q2018 Other Non- Cash Other Current Assets Non-Current Assets Current Debt Other Current Liabilities Non-Current Debt Total Equity Current Liabilities Total Interest Bearing Debt / Equity (times) 8 Strictly Private and Confidential

Revenue Breakdown & Earnings Breakdown by Business Unit EBIT 54% 24% 22% 39% 36% 38% 7% Margin Net Profit 42% 18% 15% 19% 15% 22% -4% Margin Decrease in EPC service Decrease in Trading Revenue revenue while EBITDA while Power Generation Margin and Net Profit Margin Revenue, which has higher THB MM include Gain on disposal EBITDA Margin and Net Profit investment in Gunkul Chubu Margin, has increased 4,460 Powergen (“GCPG”) 4,855 4,800 1% 32% 14% 3,367 3,600 2,976 1% 2,045 27% 43% 2,400 85% 49% 1% 1,682 31% 1,350 1,107 35% 987 23% 868 961 709 953 1,200 615 712 541 674 25% 50% 60% 44% 63% 42% 363 211 114 30% 17% 26% 0 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 (75) 2013 2014 2015 2016 2017 Q1 Q1 2017 2018 -1,200 (3) (1) (2) Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit Notes: (1) Includes Government, Private, Foreign and Project (Trading) (2) Includes Construction and Operations & Maintain (3) Includes Electricity 9 Strictly Private and Confidential

Comparison of YoY Q1 2017 vs Q1 2018 Normalized EBIT and Net Profit EBIT EBIT 38% 7% 42% Margin Margin Net Profit Net Profit 22% -4% 31% Margin Margin Decreasing in EBIT and Net Profit are effected by THB MM Cancellation fee THB MM 588 MB 1,682 1,682 (+76%) 384 384 1,000 953 1,000 Excluding one- 702 (+93%) 514 off expense from 984 984 (+144%) 396 Cancellation Fee 363 270 211 114 280 280 229 (75) -100 -100 Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Q1 2017 Q1 2018 Q1 2018 Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit 10 Strictly Private and Confidential