Opportunity Day FY2017 Results 05 March 2018 Disclaimer The - - PowerPoint PPT Presentation

Opportunity Day FY2017 Results

05 March 2018

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The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in WHA Utilities & Power Public Company Limited (“WHAUP” and shares WHAUP, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. In addition, this presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial

• performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties

and contingencies as well as various risks and these may change over time and in many cases are outside the control of the Company and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future

• events. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company

does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factors and assumptions.

Disclaimer

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Agenda I. Company Profile II. Utilities Business III. Power Business IV. Operating and Financial Performance V. Outlook 2018F Appendix

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Vision & Mission

“To be Asia's leader in Utilities and Power providing total solutions to partners with good corporate governance as well as environmentally and socially friendly

• perations”
• To develop world class utilities and power solutions fitting customer's needs
• To vertically integrate solutions in utilities and power businesses and expand market

segment in Thailand and CLMV (Asia)

• To continuously develop Human Resources competencies
• To nurture an innovative culture in the organization
• To add value to communities and the environment with good corporate governance

and sustainable development strategies VISION MISSION

• I. Company Profile

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• #1 Logistics developers
• Built-to-Suit (BTSW):

World-class standard warehouses and factories

• Built-to-Suit (BTSF):

Premium quality factories for tenants with specific requirements

• Warehouse Farm:

Combination of Built-to- Suit and Ready-Built Projects at the same site

• Built-to-Own

(BTO):Warehouse or factory customized to client’s special needs then transfer the asset to the client

• Built-to-Suit Office:

Offices that are customized to customers’ specific requirements i.e. Multi-purpose offices

• I. Company Profile

WHAUP is the Flagship Company in Utilities and Power Business of WHA Group

• #1 Industrial Estate

Developer

• Existing 9 operating and 3

developing IEs in strategic cluster to serve key sectors in Thailand - total of 46,434 rais

• Net sellable area approx.

9,920 rais consisting of 4,750 rais of operating IE and 5,170 rais developing IE

• Ready-Built factory and

warehouse in IEs and logistic park

• Potential geographical

expansion in cross-border provinces and overseas investment

• Exclusive utilities provider

in the industrial estates with high margin products and steady growth

• Active power investor with

strategic partnership with reputable partners.

• 509.6 Operational Equity

MW* and growing to 552.8 Equity MW by 2019 from under construction and in pipeline.

• To be one-stop service

for Data Center developer and provider by way of business collaboration with reputable partners

• Be part of the

Government Initiative to promote digital economy

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Business Overview

• I. Company Profile

Utilities Business Power Business

Sole provider of utilities to manufacturers/ factories in leading industrial estates with a concrete plan to capture increasing demand from heavy users and expand outside i.e. other IEs, non-IE area and international

Raw Water Industrial Water Wastewater

2016 Total Sales and Management Volume 2017 100 million m3 82 million m3 Active power investor with strategic partnership with leading Thai and international power companies

Conventional Alternative

Total Equity MW 2016 2017 478.4 MW 349.6 MW 2018F 520.5 MW 113 million m3 2018F

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Agenda I. Company Profile II. Utilities Business III. Power Business IV. Operating and Financial Performance V. Outlook 2018F Appendix

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To extend our leadership in Industrial Estate Utilities Business

1

To expand our industrial business to customers' premises to serve specific demand such as recycled water, demineralized water, reverse osmosis water, etc

2

• Continue to build up our reputation and trust by improving our service quality and enhancing our research and development (R&D)
• Leverage on exclusivity for existing and new industrial estates of WHA Group
• Expand our coverage to development and management of utilities business for other industrial estates

To expand our products/services to Non-Industrial zones including cities and municipals aiming at key cities or neighboring areas

3

To replicate our comprehensive utilities platform Internationally with first priority in CLMV

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• II. Utilities Business

Utilities Business – Business Strategies

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Industrial Estate Products (Raw Water, Industrial Water and Central Wastewater Treatment) Developing Integrated Solutions to Industrial Users Municipal Water Supply CLMV Markets

Current Positioning

Thailand’s leader in industrial water businesses provides approximately 100 million m3 per year of Industrial Estate products to customers in WHA Group

5Y Aspiration

Domestic: Integrated solutions to industrial market, expansion to other market segments with world-class operation and services International: Expand to strategic regional countries by leveraging on WHA Group brand, expertise and customer base

Current Positioning

5Y Aspiration

with Continuous Inputs of IOT, Smart Solutions and Innovations

• II. Utilities Business

Utilities Business – Business Strategies

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Agenda I. Company Profile II. Utilities Business III. Power Business IV. Operating and Financial Performance V. Outlook 2018F Appendix

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Power Business - Business Strategies

To be competent developer in Alternative Power with focus on Solar Rooftop, Waste-to-Energy, etc.

2 1

Conventional Power To leverage on our extensive strategic partnership with leading developers namely GLOW, GULF, BGRIMM, and continue to enlarge our alliances network

• To capture the incoming opportunity in Alternative Power especially in Solar and Waste-to-Energy projects through strong business alliances

and the company’s advantages

• Solar Rooftop: Leverage on 2.1 million sqm rooftop and extensive customer base from WHA Group
• Waste-to-Energy: Take advantages on the locations with access to industrial waste, hazardous waste, municipal waste

To utilize synergy within WHA Group to expand our footprint to CLMV

3

• To expand power business internationally following WHA Group’s expansion footprints in CLMV and through co-investment with leading

power companies

Alternative Power International Expansion

• III. Power Business

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Power Business - Growing Portfolio

• III. Power Business

Continuing Growth from Projects Under Construction and Projects in Pipeline

from over 2 million sqm logistics roof areas under WHA/WHA Management

Over 200 MW of solar opportunities

0.9 32.3 10

2016 2017 2018F 2019F Existing Under Construction In Pipeline

552.8 MW 349.6 MW 478.4 MW 520.5 MW

BGWHA-1 GVTP GTS1 GTS2 GTS3 GTS4 WHA KM.3 Solar GNLL2 CCE Acquisition Gheco-One Houay Ho Glow IPP WHA Gunkul

CAGR 2016-2019

16.5%

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Power Business - Potential Growth

• III. Power Business

“Developer” in Power and Energy Businesses

• IPP : Glow IPP, Gheco-One , Houay Ho Hydropower in Lao PDR
• SPP : 7 SPPs in operation & 1 SPPs under construction
• Solar Rooftop : 2.6 MW sale to grid & 0.9 MW WHA KM.3 private-sale

Further opportunities from over 6 million sqm IE roof areas and 2 million sqm logistics roof areas

• WTE : 6.9 MW CCE Project SCOD in 2019. Exploring municipal-waste-to-

energy opportunities

NGD Energy Services

• Exploring opportunity in Energy Management Services such as Cogen

plant, Boiler, Chiller, Energy Storage for IE customers

Conventional Power Alternative Power

Other Targets

• New projects in IEs : HESIE2 SCOD in 3Q’18 and HESIE4 SCOD in 2019

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Power Business - Well-balanced and High Stability Portfolio

Portfolio Analysis

• III. Power Business

Maturity < 20 Years, 20% Maturity ≥ 20 Years, 80%

IPP 53% SPP 47%

By Type of Power Plant By Type of Sourcing

Coal 43% Gas 53% Hydro 4% By Type of Power Plant By Type of Sourcing VSPP 100% Solar 60% WTE 40%

Conventional Power: 537.0 Equity MW Secured Alternative Power: 5.8 Equity MW Secured

EGAT/ PEA/ MEA, 92% Industrial Users, 8%

Highly reliable off-taker (EGAT)

Client Profile

Maturity ≥ 20 Years, …

Long-maturity Portfolio

Additional Incoming Project in 2018-2019 2017

Portfolio Summary

Project Name Type JV Partner Location Contracted Capacities (MW) WHAUP Portion Equity MW COD Operating Phase Gheco-I IPP Coal Glow Map Ta Phut IE 660.0 35.00% 231.0 Q3’12 Glow IPP IPP Gas Combined Cycle Glow HCIE 713.0 5.00% 35.7 Jan-03 Houay Ho Power IPP Hydro Glow Lao PDR 152.0 12.75% 19.4 Sep-99 GJP NLL SPP Gas Co-gen Gulf JP HRIL 122.5 25.01% 30.6 May-13 Gulf Solar VSPP Solar Gulf HLP1, HCIE, HESIE, ESIE 0.6 25.01% 0.2 Jun-14 – Jan-15 WHA Gunkul VSPP Solar Gunkul Bangna and Ayudthaya 3.3 74.99% 2.5 Apr – Jul-14 BGWHA-1 SPP Gas Co-gen B Grimm HCIE 121.0 25.01% 30.3 Nov-16 GVTP SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 May-17 GTS1 SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 Jul-17 GTS2 SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 Sep-17 GTS3 SPP Gas Co-gen Gulf MP HESIE 125.0 25.01% 31.3 Nov-17 GTS4 SPP Gas Co-gen Gulf MP HESIE 125.0 25.01% 31.3 Jan-18 Total 2,412.4 509.6 Construction Phase WHA KM.3 Solar VSPP Solar

• Samutprakan

0.9 100.0% 0.9 Q1-18 GNLL2 SPP Gas Co-gen Gulf MP HRIL 120.0 25.01% 30.0 Jan-19 CCE VSPP Waste-to-energy Glow& Suez HCIE 6.9 33.33% 2.3 2019 Total 127.8 33.2

Portfolio Analysis

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Agenda I. Company Profile II. Utilities Business III. Power Business IV. Operating and Financial Performance V. Outlook 2018F Appendix

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• IV. Operating and Financing Performance

Financial Highlight 2017

Revenue from Sales and Services (Utilities Business)

1,633.8 11.3%

1) The acquisition of Utilities Business from WHA Group 2) A Full Year Operation of BGWHA-1 and COD of 4 SPPs as planned Share of Profit and Dividend Income (Power Business)

1,995.4 102.6%

1) The acquisitions of Power Assets from WHA Group, investment in Glow and Gunkul Power Projects 2) A Full Year Operation of BGWHA-1 and COD of 4 SPPs as planned 3) FX gain from translation from Power Business of Baht 574.3 million EBITDA

2,639.2 58.7%

Solid Performance due to 1) Higher revenue from sales and services from Utilities Business 2) Higher share of profit and dividend from Power Business 3) Lower income tax due to deferred tax from 2016 Net Profit Attribute to Owners of the Parents

1,980.9 436.1%

Normalized Net Profit Attribute to Owners of the Parents

1,406.6 287.2%

YoY 2017 Remark

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• IV. Operating and Financing Performance

Utilities Business Performance Solid Operating Performance

1

Increasing Selling Volume

• Increasing in demand of existing customers
• Increasing in demand of newly COD 4 SPPs namely Gulf VTP, Gulf TS1, Gulf TS2

and Gulf TS3

REVENUE

THB 1,633.8 mm

2

Increasing Selling Price

• Increasing selling price in all products

OPERATING REVENUE

THB 1,570.2 mm

19.2% 11.3%

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29 31 32 34 43 49 13 17 25 34 29 31 32 34 82 100 20 40 60 80 100 120 2012 2013 2014 2015 2016 2017 Industrial Water Raw Water Wastewater

• IV. Operating and Financing Performance

Utilities Business Performance

• Increasing Selling Volume

Increasing in demand of existing customers and newly COD 4 SPPs

• Increasing Selling Price

Increasing selling price in all products

Sale and Management Volume

Million m3/ year

+ 22% YoY + 31% YoY + 31% YoY + 14% YoY

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• IV. Operating and Financing Performance

Utilities Business Performance

1,013.0 1,155.2 196.3 262.9 108.0 152.1 150.3 63.5

2016 2017 Industrial Water Raw Water Wastewater Other Utilities Revenues

Units: THB mm

1,633.8

Remark /1 : Other Revenue is consist of excessive charge and management fee

1,467.5

27.4% 29.5% 35.3% 33.1% 25.8% 26.9% 27.9% 30.4%

2014 2015 2016 2017 Gross Profit Margin (%) Gross Profit Margin (%) (Exclude Other Utilities)

/1

Revenue from Sales and Services Gross Profit Trend

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• IV. Operating and Financing Performance

Power Business Performance

SHARE OF PROFIT AND DIVIDEND INCOME

THB 1,995.4 mm

102.6%

Growth from Acquisition of Power Assets and Completion of Projects under Construction

Improve of Business and Operation

1 2

Completion of Project under Construction

• A full year operation of BGWHA-1
• Gulf VTP, Gulf TS1, Gulf TS2 and Gulf TS3, achieved COD in May 2017, July 2017,

September 2017,and November 2017, respectively. Improvement most of power plants and GHECO-One back to full operation after planned major maintenance 1Q’17

3

Appreciation of THB against USD

Foreign exchange translation of Baht 574.3 million

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• IV. Operating and Financing Performance

Power Business Performance

Growth from Acquisition of Power Assets and Completion of Projects under Construction

Energy Dispatch Availability Energy Dispatch Energy Dispatch Availability Energy Dispatch Availability

* Gulf VTP started commercial operation since 16 May 2017

5,232 5,021

2016 2017

90.4% 86.4%

2016 2017

GWh % AF

381 396

2016 2017

GWh

498

2016 2017 95.6 % 2016 2017

GHECO-One HHPC GNLL Gulf VTP

739 830

2016 2017

83.3 % 98.9 %

2016 2017

GWh % AF GWh % AF

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• IV. Operating and Financing Performance

Power Business Performance

Growth from Acquisition of Power Assets and Completion of Projects under Construction

Energy Dispatch Availability Energy Dispatch Energy Dispatch Availability Energy Dispatch Availability

* BGWHA-1 started commercial operation since 1 November 2016

412

2016 2017

98.4%

2016 2017

GWh % AF

280

2016 2017

GWh

55 856

2016 2017 98.9% 95.2% 2016 2017

Gulf TS1 Gulf TS2 Gulf TS3 BGWHA-1*

127

2016 2017

98.2 %

2016 2017

GWh % AF GWh % AF

Availability

99.6%

2016 2017

% AF * Gulf TS1 started commercial operation since 8 July 2017 * Gulf TS2 started commercial operation since 1 September 2017 * Gulf TS3 started commercial operation since 1 November 2017

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Share of Profit and Dividend Income totalled at Baht 1,995.4 million, a 102.6% growth from 2016.

Units: THB mm

• IV. Operating and Financing Performance

Power Business Performance

Growth from Acquisition of Power Assets and Completion of Projects under Construction

978.8 1,421.0 6.2 574.3

985.0 1,995.4

2016 2017 Normalized Share of Profit Gain (Loss) FX

• 1st Full Year Operation of

BGWHA-1

• Completion of Gulf VTP

COD in May 2017

• Completion of Gulf TS1

COD in July 2017

• Completion of Gulf TS2

COD in September 2017

• Completion of Gulf TS3

COD in November 2017

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• IV. Operating and Financing Performance

Revenue and Net Profit Growth Consolidated Performance

Remark:

/1 Net Profit Attribute to Owners of the Parent include share of profit of Baht 574.3 million FX translation gain

1,467.5 1,633.8 985.0 1,995.4 2016 2017 Revenue from Sales and Services Share of Profit and Dividend Income Net Profit 369.4 1,980.9

2,452.5 3,629.2

/1

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Consolidated Performance

• IV. Operating and Financing Performance

1,657.0 2,064.9 6.2 574.3

65.9% 71.2% 65.9% 66.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 3500.0 4000.0 2016 2017

Consolidated EBITDA/1 and EBITDA Margin

Unit : THB mm

Consolidated Net Profit/2 and Net Profit Margin/3

Remark:

/1Consolidated EBITDA from Utilities Business and Power Business and Other Income. /2Net Profit Attribute to Owners of the Parent /3 Net Profit Margin is calculated by dividing the Net Profit Attribute to Owners of the Parent by revenue from Sale and Services and Share of Profit from Investments in Associates and Joint Ventures and Other Income

Normalized EBITDA (THB mm) EBITDA Margin (%) Gain (Loss) FX (THB mm) Normalized EBITDA Margin (%)

1,663.1 2,639.2

363.2 1,406.6 6.2 574.3

369.4 1,980.9 14.7% 53.5% 14.4% 44.9%

• 60.0%
• 40.0%
• 20.0%

0.0% 20.0% 40.0% 60.0% 0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 2016 2017

Unit : THB mm

Normalized Net Profit (THB mm) Net Profit Margin (%) Gain (Loss) FX (THB mm) Normalized Net Profit Margin (%)

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Capital Structure and leverage ratio

• IV. Operating and Financing Performance

2.4% 9.9% 2016 2017

18,652 21,378 10,421 7,930 811 871 7,420 12,577 1 2 3 4 5 6 Total Assets Interest Bearing Debt Other Liabilities Total Equity Statement of Financial Position Debt Maturity Profile

2016 2017 1.51x 0.70x 2016 2017 D/E Ratio 1.38x 0.58x 2016 2017 Net IBD/E Ratio 4.2% 19.8% 2016 2017 ROE* ROA*

Financial Ratio 1,000 1,500 1,500 4,000 2018 2019 2020 2021 2022 Term Loan Bond

Unit : THB mm Unit : THB mm Note : * Weighted average equity or assets

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Agenda I. Company Profile II. Utilities Business III. Power Business IV. Operating and Financial Performance V. Outlook 2018F Appendix

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2018 Plan: Utilities Business

Continue Expanding Markets

• To grow with new WHA-Hemaraj’s Industrial Estates
• HESIE3 to be launched in 2018
• Nghe An Vietnam Phase 1 to commence in 2018
• Exploring the opportunity in Vietnam
• To serve on-premise demand (in WHA-Hemaraj IEs and outside)
• Under negotiation process with customers
• To tap non-industrial market (Municipal, commercial buildings)
• Capturing the opportunities from specialized estates
• To enter into other CLMV
• Feasibility Study on the water supply projects in Myanmar and

Vietnam

HESIE3

Raw Water

Continue Adding More Products/Services

• To expand products mix to cover recycled water, demineralized

water, desalination, RO water, etc. Industrial Water

• Process water
• Clarified water

Wastewater Treatment Current Products/Services in Existing WHA-Hemaraj’s IEs

Extend our Leadership in Industrial Estate Utilities Business

• To continuously build up reputation and trust by improving service

quality and enhancing R&D

• V. Outlook 2018F

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2018 Plan: Power Business

Leverage WHA Group’s Resources and Customer Base

HESIE3

Conventional Power

Leverage on our Extensive Strategic Partnership

• Continue to enlarge our alliance network
• To co-develop new projects
• Natural gas distribution projects in HESIE2 and HESIE4

Alternative Energy

• To capture huge opportunity from IE roof and over 2 million sqm

logistics roof areas

• Offering service to customers
• Exploring solar rooftop opportunity outside WHA-Hemaraj IEs
• Exploring municipal waste to energy
• Exploring energy management services for IE customers

Utilize Synergy within WHA Group to Expand Footprint to CLMV

• To expand power business internationally following WHA Group’s

expansion footprints in CLMV and through co-investment with leading power companies

• V. Outlook 2018F

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2018 Outlook – Visible Growth From Both Businesses

UTILITIES AND SALES MANAGEMENT VOLUME POWER CAPACITY OF WHAUP

Revenue growth will come from enlargement of sales and management volume Power capacity increase from the COD of GTS 4 and WHA KM.3 Solar in Q1’2018 with 32.2 equity MW and in pipe line 10 equity MW

100 113

2017 2018F

478 521

2017 2018F

Equity MW Equity MW Million M3 Million M3 Demand increase from new land sales customers Higher consumption from current customers’ business growth

• V. Outlook 2018F

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Agenda I. Company Profile II. Utilities Business III. Power Business IV. Operating and Financial Performance V. Outlook 2018F Appendix

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Shareholders and Management Structure

Appendix

Shareholding Structure Board of Directors

• Mr. David Richard Nardone

Director

• Ms. Jareeporn Jarukornsakul

Chairman of Board of Directors

• Mr. Vivat Jiratikarnsakul

Director

• Mr. Wisate Chungwatana

Director and Chief Executive Officer

• Mr. Surathian Chakthranont

Director

• Mr. Weidt Nuchjalearn

Independent Director and Chairman of Audit Committee

• Mr. Ekajai Tivutanond

Independent Director and Audit Committee

• Mrs. Punnee Worawuthichongsathit

Independent Director and Audit Committee

Remark /1 WHA Group covers Hemaraj Land and Development Plc., WHA Ventures Holding, H-International (SG) PTE. Ltd., Mr. Somyos Anantaprayoon , Miss Jareeporn Jarukornsakul Note: Shareholding Structure and Top 10 Shareholders are reference from WHAUP’s registered list

• f shareholders on latest closing date of 3 January 2018

Top 10 Shareholders

• No. of shares

% Hemaraj Land and Development Plc. 2,633,999,970 68.9% K 20 Select LTF 83,339,100 2.2% WHA Ventures Holding Co., Ltd. 72,581,665 1.9%

• Mr. Somyos Anantaprayoon

50,240,625 1.3% Miss Jareeporn Jarukornsakul 46,999,800 1.2% H-International (SG) Pte. Ltd. 43,500,010 1.1% Thai NVDR Co.,Lted 36,194,537 0.9% Bangkok Life Assurance PCL 31,620,000 0.8% SCB Dividend Stock 70/30 Long Term Equity Fund 29,055,015 0.8% AIA TH-EQ1-P 24,329,660 0.6% Others 773,139,618 20.2% Total 3,825,000,000 100%

WHA Group, 74% Domestic Institutions, 14% Foreign Institutions, 1% Retail, 11%

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Power Business - Well-Balanced Portfolio with Strategic Location

Appendix

BGWHA-1

• Cogeneration SPP
• Total MW : 121.0 MW
• COD in 2016

Glow IPP

• Combined Cycle IPP
• Total MW : 713.0 MW
• COD in 2003

Gheco-One

• Coal IPP
• Total MW : 660.0 MW
• COD in 2012

GJP NLL

• Cogeneration SPP
• Total MW : 122.5 MW
• COD in 2013

Huoay Ho

• Hydropower IPP
• Total MW : 152.0 MW
• COD in 1999
• Located in Lao PDR

Map ta Put IE HRIL HCIE ESIE HESIE WHA Gunkul

• Solar VSPP
• Total MW : 3.3 MW
• COD in 2014
• Located in Bangna (BKK) and

Ayudthaya

Gulf Solar (KKS, BV,TS1,TS2)

• Solar VSPPs
• Total MW : 0.6 MW
• COD in 2014-15

WHA KM.3 Solar

• Solar VSPPs
• Total MW : 0.9 MW
• SCOD in 2018

Alternative Power Operating Plants

GVTP

• Cogeneration SPP
• Total MW : 130.0 MW
• COD in 2017

GTS 2

• Cogeneration SPP
• Total MW : 130.0 MW
• COD in 2017

GTS 3

• Cogeneration SPP
• Total MW : 125.0 MW
• COD in 2017

GTS 4

• Cogeneration SPP
• Total MW : 125.0 MW
• COD in 2018

GNLL2

• Cogeneration SPP
• Total MW : 120.0 MW
• SCOD in 2019

Under Construction

GTS 1

• Cogeneration SPP
• Total MW : 130.0 MW
• COD in 2017

Waste-to-Energy

• Waste-to-Energy VSPP
• Total MW : 6.9 MW
• SCOD in 2019

Samutprakarn

Under Construction