Gunkul Engineering Public Company Limited 30 th May 2019 Section I: - - PowerPoint PPT Presentation

Gunkul Engineering Public Company Limited

30th May 2019

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 of renewable energy projects

• Renewable energy power producer: Power projects with contracted

capacity(1) of 543.1 equity MW in Thailand, Myanmar, Japan and Malaysia (approx. 64% solar, 34% wind, and 2% gas). As of current, we have ~348 equity MW in operation (64% operated)

• Approx. US$ 718.96 Million market capitalization end of December

2018 (SET:GUNKUL)

Notes: (1) Including operational, under construction, and secured pipeline. (2) As of May 2019 (3) Gunkul Group is a holding company with the Dhumrongpiyawut family owning 99.6% of the Group (4) Dhumrongpiyawut family accounts for 53.3% 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

3

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 2022

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

2017 2018

4

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 5

Vertically Integrated Business Covering Downstream Segments of Renewable Energy

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 543 MW

543 MW (Equity) 543 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

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 ( 3 Projects) Total Gross / Equity (MW) 170.0 / 170.0 Solar Rooftop ( 2.8 MW) Fully COD (9 Projects) Total Gross / Equity (MW) 5.5 / 2.8 Private PPA Solar Rooftop ( 32.6 MW) Fully COD ( 1 Project) Total Gross / Equity (MW) 1.0 / 1.0 Under Construction ( 3 Projects) Total Gross / Equity (MW) 31.6 / 31.6 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

32.6

• 32.6

Total 302.1 207.1 21.0 12.8 543.1

Solar Farm ( 207.1 MW) Fully COD( 2 Projects) Total Gross /Equity (MW) 65.3 / 65.3 Under Construction ( 2 Projects) Total Gross /Equity (MW) 141.8 / 141.8 Solar Farm ( 20.99 MW) Under Development ( 1 Projects) Total Gross / Equity (MW) 29.99 / 20.99

Note: (1) The figure is as of 1 Nov, 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

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Expand EPC business into Transmission Line & Substation sectors which support Thailand Electrical System By 2022, 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

302 200

207

207

• 121

21 100

100

• 100

113

13 100

Others

Strictly Private and Confidential 8

Track Record of Accelerated Growth

15.8 10.4 1.0 12.8 2.8 58.3 10.0 50.0 2.6 1.0 50.0 33.5 348.0 1.1 8.0 2.6 60.0 31.8 0.5 20.0 10.0 21.0 66.8 75.0 542.4 200 400 600

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 Sendai COD Q4 2018 Kimitsu COD Q1 2019 Operational Capacity Private PPA COD Q2 2019 Private PPA COD Q2 2019 Private PPA COD Q2 2019 Private PPA COD Q3 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 (Q1 2019 – 2022) In Operation (2011 – Q1 2019)

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

COD : 1 November 2018

SENDAI

9

Strictly Private and Confidential 10

Sendai – Japan Solar Project

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

KIMITSU

COD : 1 April 2019

11

Strictly Private and Confidential

Kimitsu – Solar Project

12

Strictly Private and Confidential

Kimitsu – Solar Project

13

Section II: Q1-2019 Performance

Strictly Private and Confidential

3,360 8,590 9,749 10,184 9,500 9,643 447 484 463 592 671 762 20 3,369 8,562 13,519 16,949 16,638 1,151 2,442 2,000 3,200 1,871 1,639 2,261 3,930 4,822 3,232 6,633 6,359 4,654 12,641 19,523 24,745 30,086 29,692 1,078 2,678 3,605 4,824 4,646 4,515 1,507 3,497 2,468 1,158 893 833

7,239 7,239 18,815 18,815 25,596 25,596 30,377 30,726 35,625 35,625 35,041 35,041 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 10,000 20,000 30,000 40,000 2014 2015 2016 2017 2018 Q12019 2.48x 0.68x 0.85x 1.37x 1.70x 0.65 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

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2.38x 0.67 1.02 *Break off Current portion of debentures

Strictly Private and Confidential

Breakdown by Business Unit

709 961 987 1,376 2,082 121 512 541 674 615 715 1,178 (70) 232

• 1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT Net Profit

47%6 31% 42%

31%

50% 1% 49% 85% 14% 1% 31% 27% 24% 44% 32% 22% 31% 47% 16% 61% 23% 23% 18% 59%

THB MM 24% 18% 22% 15% 39% 19% 38% 22% EBIT Margin Net Profit Margin 36% 15% 35%

16%

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

16

1,461 1,736 6,461 4,913 3,367 4,591 3,062 7%

(4%)

Strictly Private and Confidential

31%

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

2017 2018 2019F 2020F

Manufacturing and Trading Revenue EPC and O&M Revenue Power Generation Revenue EBIT

45%

4,913 8,000 (+25%) 3,200 (+54%) 6,460 (+31%) 2,082 (51%) 1,376 9,250 (+16%) 3,850 (+20%)

Forecasted Revenue Breakdown & Earnings

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22% 31% 47%

18% 33% 48%

25% 42% 33% 43% 19% 38% 44% 16% 40%

Strictly Private and Confidential

 ราคาปิด

2.90 บาท

 ผลตอบแทน

12.40%

อัตราผลตอบแทนจากหุ้นปันผล (5:1) + เงินสด 0.01 บาทต่อหุ้น

18

24 เม.ย. 62 25 เม.ย. 62 15 พ.ค. 62 29 พ.ค. 62

ราคาปิด

3.10 บาท

 รับหุ้นปันผล 5:1  รับเงินสดปันผล 0.01 บาท / หุ้น หุ้นปันผลเข้า TRADE

ก่อน XD 1 วัน

ราคาปิดวานนี้

Dilution Effect ท าให้ต้นทุน

เฉลี่ยลดลงเป็น 2.58 บาท

(~17%)

ราคาปิด 2.62  ผลตอบแทน 1.55% ราคาเฉลี่ย 2.68  ผลตอบแทน 3.88% ราคาสูงสุด 2.76  ผลตอบแทน 6.20% ขึ้น XD

21 วัน 35 วัน 1 วัน 0 วัน

Section III: Opportunities to growth

Strictly Private and Confidential

2019 GUNKUL’s target growth

In 2019, GUNKUL’s revenue and EBITDA will continue to grow 25% and 54%, respectively

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Three major factors to support the growth

PDP 2018 support to Solar Rooftop The Ministry of Energy has put Private PPA of Solar Rooftop in a National Power Development Plan for the country's new Power Development Plan (PDP2018) of over 10,000 MW, starting by the first five years (2019 - 2023) which expected to reach an average of 100 MW per year, before moving upwards by 1,000-2,000 MW after 2027 to reach 10,000 MW in year 2036 In 2019, our operated capacity MW will reach 401MW, including Thailand, Japan, Malaysia. We are still looking for new

• pportunities

in every countries and target to secure 1,000MW by increasing capacity through domestic and international Fully COD of Power Plant of almost 400 MW in 2019 To secure EPC of transmission line, substations and submarine cable

The acquisition of FEC on 3 July 2018 was a very good advantage for GUNKUL to enhance Company’s growth from entering into the new business segment and capture more market shares in Transmission line & Substation Construction Sector which leads to higher earnings

Government Utilities’ Outstanding Project (2019-2023) in Transmission Line & Substation

169,305 THB Million

Transmission line Underground Cable Substation Electricity Plant

TARGET

70-100 MW in 2019

TARGET

To achieve 3,500 MB in 2019

TARGET

To achieve 3,000 MB in 2019

Government Utilities 16

Strictly Private and Confidential

EPC : Opportunities to growth

Potential Projects Value announced by EGAT, PEA and MEA Selective & Captured only PEA Projects Average PEA Projects value per year during 2018 - 2023

592,177 MB 169,934 MB 33,987 MB / Year

21

Strictly Private and Confidential

EPC : Opportunities to growth Backlog (approx. 7,000 MB)

22

• Substation 115 KV (total 880 MB)
• High Voltage Power Distribution System - Underground
• Transmission line 115 KV Loop Line

400 MB 1,150 MB 115 MB

• Solar Rooftop Projects

300 MB

• Krungthep Thanakom – Fiber Optic

5,100 MB

Strictly Private and Confidential

GUNKUL’s Wind Project : 2018 Performance

83,185,430 kWh 6-month 6.17 m/s 35.64% 95.99%

Production

123,519,080 kWh 9-month 5.24 m/s 27.28% 96.19% 123,720,298 kWh 12-month 5.38 m/s 23.50% 96.13%

Period

• Avg. Wind Speed

Capacity Factor Plant Availability

50 MW

Contracted MW

60 MW 60 MW 20 June 2018

COD Date

27 March 2018

10 MW : 17 Mar 2016 50 MW : 29 Dec 2016

23

Strictly Private and Confidential

WED – Wind Project

24

Strictly Private and Confidential

GNP – Wind Project

25

Strictly Private and Confidential

KWE – Wind Project

Strictly Private and Confidential

33 kV Submarine Cable

33 kv Submarine Cable : Ko Prathong

Project Ownner : PEA Location : Ko Prathong, Pang Nga Total Project Cost : 87.5 Million Baht

• -- Project Completed ---

Strictly Private and Confidential

115 kV Submarine Cable

115 kv Submarine Cable : Ko Sa-mui

Project Ownner : PEA Location : Ko Sa-mui Total Project Cost : 1,800 Million Baht Bidding Period : Q2 - 2019

Strictly Private and Confidential

33 kV Submarine Cable

33 kv Submarine Cable : Ko Tao

Project Ownner : PEA Location : Ko Tao Total Project Cost : 1,500 Million Baht Bidding Period : Q4 - 2019

Strictly Private and Confidential

Floating Solar Power Plant

Floating Solar Power Plant

Project Ownner : EGAT Location : Sirindhorn Dam, Ubonratchathani Capacity : 250 kW Total Project Cost : 21 Million Baht

• -- Project Completed ---

Strictly Private and Confidential

High Quality Renewables Asset Portfolio

31 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 ( 3 Projects) Total Gross / Equity (MW) 170.0 / 170.0 Solar Rooftop ( 2.8 MW) Fully COD (9 Projects) Total Gross / Equity (MW) 5.5 / 2.8 Private PPA Solar Rooftop ( 32.6 MW) Fully COD ( 1 Project) Total Gross / Equity (MW) 1.0 / 1.0 Under Construction ( 3 Projects) Total Gross / Equity (MW) 31.6 / 31.6 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

32.6

• 32.6

Total 302.1 207.1 21.0 12.8 543.1

Solar Farm ( 207.1 MW) Fully COD( 2 Projects) Total Gross /Equity (MW) 65.3 / 65.3 Under Construction ( 2 Projects) Total Gross /Equity (MW) 141.8 / 141.8 Solar Farm ( 20.99 MW) Under Development ( 1 Projects) Total Gross / Equity (MW) 29.99 / 20.99

Note: (1) The figure is as of 1 Nov, 2018

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.

Gunkul Engineering Public Company Limited 1177 Pearl Bangkok Building, 8th Floor, Phahonyothin Road, Phayathai , Phayathai, Bangkok 10400

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