TPI Polene Power Public Company Limited Q 3 2018 Opportunity Day 18 December 2018 Strictly Private & Confidential
Table of Content Section 1. Company & Business Overview 2. Financial Highlights 3. Key Investment Highlights Strictly Private & Confidential 1
Company & Business Overview Strictly Private & Confidential Strictly Private & Confidential 2
TPIPP’s Vision & Mission Vision The Company is determined to be a high quality and high standard leader in the business of power generation using renewable energy sources, focusing on continuous development of technology and staff to create highest benefits for shareholders and staff. The Company intends to operate its business by adhering to the principle of ethics and good corporate governance Mission • Supporting municipal waste disposal for Local Administrations by converting waste to fuel and energy properly and efficiently. • Handling waste disposal to the fullest utilization without disposal to the outside. Developing production technologies suitable for waste conditions in Thailand. • Generating electric power from renewable energy by using fuel from refuse and waste • heat. Strictly Private & Confidential 3
TPIPP as TPIPL’s Flagship for Power Business Unit: THBmm TPIPP (Q3 2018) TPIPP (9M 2018) Main Business Electricity generation from waste heat and refused derived fuel (RDF) power plants and operation in petrol and gas stations. 2,175 5,589 Total Revenue 1,123 3,011 Operating EBITDA * Net Profit 1,005 2,725 28,063 28,063 Total Asset 3,141 3,141 Concrete Business LDPE Business EVA Business Total Liabilities Cement Business Registered and 8,400 8,400 Paid-up Capital Public Total Equity 24,923 24,923 70.24% Market Cap as of 55,860 55,860 28 Sep 2018 29.76% Remark : 1.Operating EBITDA of Q3 2018 excluding net foreign exchange gain 39 THBmm 2.Operating EBITDA of 9M 2018 excluding net foreign exchange gain 49 THBmm and compensation from insurance claims of 116 THBmm Power Plant Business Strictly Private & Confidential 4
TPIPP at a Glance TPIPP is the largest operator of waste-to- energy (“WTE”) power plants in Thailand in terms of installed power generation capacit y Key Business Segments % of Q3 2018 Total Sales Revenue Operates refuse derived f uel (“ RDF ”) fired & waste-heat recovery power plants with off-take arrangements with EGAT and TPIPL 7 commercially operating power plants TG1-TG7-290MW. 1 power plants construction completed, TG8-150MW, target to COD within Q4/2018 91% Peripheral RDF production facilities to support its RDF- fired power plant operations THB 1,923.6 mm Energy & Utilities Operates petrol stations and gas stations in Bangkok and other 9% provinces in Thailand Currently owns and operates 8 petrol stations, 1 gas station and 3 petrol and gas stations Revenue derived from the sale of petrol, gas and convenience store goods THB 183.0 mm Petrol & Gas Stations Others Strictly Private & Confidential 5
Summary of TPIPP’s Power Plant Operations TPIPP’s Power Plants (Operational & Under Construction) TPIPP’s Installed Capacity Breakdown by Fuel MW Waste Heat RDF (3) Coal/RDF Coal Total capacity in operation 290 MW 440 Total capacity of 150 MW , construction completed , target to COD in Q4/2018 180 Grand total capacity 440 MW 290 Installed Expiry 180 Power Plant COD Capacity Date (2) Off taker 150 150 150 120 In operation 80 80 WHPP-40MW Jun 2009 40 MW Jul 2044 TPIPL 70 70 80 RDFPP-20MW Jan 2015 20 MW Jul 2044 EGAT 70 70 60 40 40 40 RDFPP-60MW Aug 2015 60 MW Jul 2042 EGAT 2009 2015 2016 2017 2018P 2018F WHPP-30MW (1) Jan 2016/Apr 2018 30 MW Jul 2042 TPIPL/EGAT TPIPP’s Q3 2018 Energy & Utilities Revenue Breakdown RDFPP-70MW (1) Apr 2018 70 MW Dec 2045 EGAT THB mm Coal-RDF-PP-70MW Aug 2018 70 MW ** Jul 2042 TPIPL Other 8.2 Coal-PP-150MW Q4 2018 * 150 MW Jul 2042 TPIPL 0.4% TPIPL * Target COD date ** Under an approved power generation capacity of 40 MW. 252.1 Notes: 13.1% 733.6 (1) After commencing commercial operations in January 2016, WHPP-30MW initially sold power EGAT-Base to TPIPL to be used in TPIPL’s cement production process until RDFPP-70MW commences 38.1% commercial operations. Since RDFPP-70MW commenced commercial operations in April 2018, 1,923.6 WHPP-30MW, together with RDFPP-70MW, operated as a 100 MW RDF-fired power plant (RDFPP-100MW) and sold power produced from such plant, using RDF and waste heat, to EGAT-Adder 929.7 EGAT. 48.3% (2) PPAs between the Company and EGAT has a term of five years beginning from COD and will be automatically extended for additional five-year terms, subject to at least 30 days’ prior written notice from the Company to EGAT. RDFPP-20MW and RDFPP-60MW are situated on properties leased from TPIPL for a 30-year period, which expire in July 2044 and July 2042, respectively. The Company intends to extend the lease agreements. (3) Generates power by burning RDF and partially utilizing waste heat Strictly Private & Confidential 6
Summary of TPIPP’s Petrol & Gas Station Operations TPIPP primarily sells petrol and gas to retail customers under the “TPIPL” brand The Company was granted the license to use the trademark of TPIPL in accordance with a 10-year trademark licensing agreement dated March 7, 2016 between the Company and TPIPL (the “TPIPL Trademark Agreement”) in connection with the Company’s sales of certain petrol and gas products Breakdown of TPIPP’s Petrol & Gas Stations by Type and Location Supply of Petrol and Gas Number of Number of Procurement of Petrol petrol Number of gas petrol and gas – From oil companies at market price on a spot Location stations stations stations Total basis Bangkok 2 - 1 3 Procurement of Petrol for Petrol Stations in the Saraburi province Saraburi province 4 1 1 6 – Also purchases from TPIPL at cost. TPIPL Nakornsawan regularly purchases petrol at large volumes and 1 - - 1 province at discounted prices in the open market Ubonrajthani - - 1 1 Procurement of Gas province – Agrees to purchase a minimum amount of gas Samutprakan from PTT Public Company Limited every month, 1 - - 1 province ranging from 700,000 kilograms to 1,200,000 kilograms per month Total 8 1 3 12 Historical Sales Volume Board of Investment Privileges Petrol Sales (litre in millions) Gas Sales (kg in millions) One of the gas stations has been granted promotion certificates from BOI, which entitles 17.7 it to a number of benefits including tax 17.3 34.5 31.4 14.7 exemptions from certain taxes 25.7 Expiration of Full Income Tax Exemption: – July 2017 3.7 3.6 3.7 6.4 5.7 5.6 Expiration of 50% Income Tax Reduction: – July 2022 2015 2016 2017 Q3 Q2 Q3 2015 2016 2017 Q3 Q2 Q3 2017 2018 2018 2017 2018 2018 Strictly Private & Confidential 7
Mutually Beneficial Support Framework with TPIPL Complementary Sale & Purchase Relationship with TPIPL Supports Continuing Development of Both Companies Backing and Continuing Support from Recognized Shareholder, TPIPL One of the leading cement manufacturers in the country TPIPL General Public founded in 1987 and is listed on the Stock Exchange of Shareholding Thailand since 1990 Structure ≥70% ≤30% Primarily engages in the business of manufacturing and Post IPO selling cement & low-density polyethylene/ethylene vinyl acetate plastic resin as well as selling construction TPIPP materials Waste Heat Supply & Power Sales Arrangements with TPIPL TPIPL sells waste heat to TPIPP TPIPP sells power to TPIPL Pursuant to the respective PPAs (1) Sell waste heat TPIPP Utilizes Waste Heat Emitted from Installed Power Generation Capacity (MW) TPIPL’s Cement Production Process with TPIPL as Offtaker Pursuant to the TPIPL Plan COD in Framework Q4 2018 Agreement Kangkhoy, As the power and Saraburi Province cement plants are 150 Sell power generated located in the same 70 vicinity, waste heat 40 can be obtained with WH Coal Coal minimal heat loss PP -RDF -PP (2) -40MW -70MW -150MW Notes : (1) PPAs do not specify a contracted power generation capacity (2) TG7 COD in Aug 2018.(under an approved power generation capacity of 40 MW) Strictly Private & Confidential 8
Financial Highlights Strictly Private & Confidential Strictly Private & Confidential 9
Revenue Diversified Revenue Streams Led by Growing Revenues from Energy & Utilities Division Total Revenue from Sales of Goods (THBmm) Revenue from Energy & Utilities (THBmm) 4,804.7 34.6 5,336.3 577.3 0.0 531.7 3,005.8 34.3 341.0 1,923.6 1,704.7 8.2 4,192.8 13.0 252.1 92.2 960.8 2,630.5 11.2 103.4 1,663.3 1,599.5 3,550.9 15.3 846.3 529.7 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 EGAT TPIPL Sales of shredded tires, Steam & Others 4,804.7 Revenue from Petrol & Gas Station (THBmm) 2,106.6 0.0 1,879.5 183.0 0.0 174.8 3,005.8 531.7 529.7 1,143.2 5.1 4.2 7.9 174.4 1,923.6 228.6 1,704.7 245.3 960.8 183.0 174.4 174.8 1.4 1.4 1.6 298.9 76.8 279.3 74.8 81.4 98.6 104.8 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 91.4 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 Energy & Utilities Petrol & Gas Station Agriculture Petrol sales Gas sales Other sales Strictly Private & Confidential 10
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