Banpu Public Co. Ltd. · SET:BANPU
Banpu Public — Q3 2022 Earnings Presentation
56 slides from Banpu Public's earnings presentation, Nov 16, 2022
Slide 1: 3Q22 results: Investor and analyst update
3Q22 results Investor and analyst update 16th November 2022
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains “forward-looking” statements that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of
Slide 3: Highlights
Highlights Greener, Smarter Financial Energy Energy Energy 3Q22 … Faster ! Summary Resources Generation Technology 3
Slide 4: 3Q22 highlights
3Q22 highlights Accelerating Banpu’s Robust Cash Flow Generation ESG Leadership Recognition Sustainability Transformation EBITDA for the quarter was $1,350 M ESG leadership recognition across the Significant progress in Greener, Smarter with strong contribution from Coal Banpu group, showcased by re
Slide 5: Banpu: ESG leadership and credit rating recognition
Banpu: ESG leadership and credit rating recognition In 2021, BPP demonstrated high ESG standards through sustainable and responsible operations S&P SUSTAINABILITY YEARBOOK MEMBER COMMENDED SUSTAINABILITY AWARD rating for third consecutive year class distinction, the only Recognized as one of the top
Slide 6: Greener, Smarter
Highlights Greener, Smarter Financial Energy Energy Energy 3Q22 … Faster ! Summary Resources Generation Technology 6
Slide 7: Banpu: international versatile energy provider
Banpu: international versatile energy provider ENERGY RESOURCES ENERGY GENERATION ENERGY TECHNOLOGY NATURAL GAS EXTRACTION GAS-FIRED BATTERY POWER PRODUCTION COAL MINING EV COAL-FIRED POWER MANUFACTURING & SALES E-FERRY / E-BOAT RENEWABLES MOBILITY AS A SERVICE SOLAR EPC AND O&M CARSHARING SMART CIT
Slide 8: Driving Greener, Smarter growth through Banpu NEXT
Banpu: driving the Greener, Smarter growth through Banpu NEXT Renewables Solar: Rooftops …ACCELERATE & Floating GREENER,SMARTER GROWTH Battery Production S T R O N G C AS H F L O W G E N E R AT I O N F R O M O P E R AT I O N S C O R E C O M P E TE N CI E S Leveraging price upside from energy resourc
Slide 9: Clean energy technology: catalyst for a sustainable future
Clean energy technology: catalyst for a sustainable future ENERGY S TO R A G E MO B I L I T Y Significant growth in the area of clean Global installed Global demand for Li-ion Global EV sales energy technology, in battery for EV in 2025 renewables capacity alignment with Banpu in 2025 NEXT’s strateg
Slide 10: Banpu NEXT: Greener, Smarter transformation
Banpu NEXT: Banpu’s Greener, Smarter transformation GREENER, SMARTER A C C E L E R A T E D G R O W T H S I N C E E S T A B L I S H M E N T T O T O D AY TRANSFORMATION 3Q22 INITIATED Smart cities & EMS Smart city fund 2017 2019 Altotech acquisition: investment: Acquired 25% of Invested US$15 M into A
Slide 11: Banpu NEXT: scale-up strategy for future positioning
Banpu NEXT: scale-up strategy for future positioning 1 Invest into high-quality renewable assets with potential growth pipeline and high cash flow generation potential 2 Expansion of portfolio on focused business areas and effective opportunity pipeline management Energy Energy RE (Solar RT, Energy
Slide 12: Current position and future targets
Current position and future targets 2019 Current 2025 target RENEWABLES 307 MW 805 MW 1.1 GW SOLAR: ROOFTOPS & FLOATING 109 MW 198 MW 500 MW 3.0 GWh Durapower BATTERY PRODUCTION 1.0 GWh 1.0 GWh 100% basis 0.75 GWh Cherdchai Motor JV SM ART CITIES & ENERGY MGMT including Ecoserve 4 projects 21 projec
Slide 13: Banpu NEXT: our purpose and aspirations
Banpu NEXT: our purpose and aspirations the the Vision Mission Innovating infinite To become a global energy solutions to all energy solutions To provide innovative energy the ambition. provider that innovates technology solutions ranging Net Zero Solutions betterment for all and from smart data ana
Slide 14: Financial Summary
Highlights Greener, Smarter Financial Energy Energy Energy 3Q22 … Faster ! Summary Resources Generation Technology 14
Slide 15: Consolidated financial summary 3Q22
Banpu consolidated financial summary 3Q22 KEY FIGURES KEY TAKEAWAYS 1 Continuous strong Coal business performance: EBITDA $1,350 M from solid production volume and higher ASP, compared to relatively strong levels of 2Q22, driven Strong result driven by Coal and Gas by strong coal prices, demand and
Slide 16: Banpu consolidated sales revenues – 3Q22
Banpu consolidated sales revenues – 3Q22 +35% QoQ USD million +106% YoY 2,397 Others* 90 -25% QoQ 149 +89% YoY Power +7% QoQ 1,773 573 +284% YoY 120 Gas 139 +48% QoQ +148% YoY 389 387 Coal Australia 1,161 +13% QoQ 48 +107% YoY 39 231 343 Others* Power 188 Gas Coal Indonesia 1,197 Coal Australia +52%
Slide 17: Banpu consolidated EBITDA – 3Q22
Banpu consolidated EBITDA – 3Q22 +42% QoQ USD million +155% YoY 1,350 Power 74 +28% QoQ +636% YoY Gas 377 +43% QoQ 948 +208% YoY 58 Coal Australia +20% QoQ 200 +267% YoY 264 57 Coal China +14% QoQ 530 +14% YoY Energy Technology 10 167 Power 122 50 Gas 55 Coal Indonesia Coal Australia 50 645 +56% QoQ
Slide 18: Banpu consolidated NPAT – 3Q22
Banpu consolidated NPAT – 3Q22 3Q22 NET PROFIT AFTER TAX USD million Non-recurring items: • FX gain USD:THB $79.3 M 1,350 • Other non-recurring ($7.7 M) • Derivative loss ($248.3 M) (185) - D&A - Coal swap ($42.8 M) (75) - Interest - Gas hedging ($267.4 M) - Electricity Contract $68.5 M (258) - Tax
Slide 19: Energy Resources
Highlights Greener, Smarter Financial Energy Energy Energy 3Q22 … Faster ! Summary Resources Generation Technology 19
Slide 20: U.S. gas market update
U.S. gas market update US CONSUMPTION & PROJECTION US NATURAL GAS PRODUCTION U.S. STORAGE LEVEL Unit: Bcf/d Residential Industrial Other Unit: Bcf/d 2021 actual 2022 actual 2022 forecasted Unit: Bcf Commercial Power production production production 2021 actual 2022 actual 2022 forecasted Storage 3yr
Slide 21: U.S. gas: prices expected to remain high amid winter season
U.S. gas: gas prices expected to remain high amid winter season US RIG COUNT VS HENRY HUB PRICE COMMENT US OIL AND NATURAL GAS RIG COUNT HENRY HUB SPOT PRICE ▪ Natural gas prices in 3Q22 increased from Unit: Rigs Unit: $/MMBtu the previous quarter driven by continued 1,400 8.5 surge in gas demand in
Slide 22: Gas: 3Q22 highlights
Banpu Gas: 3Q22 highlights US DRY GAS CONSUMPTION 2021 BY STATE* 2,500 - 5,000 Bcf 500 – 749 Bcf Banpu shale 1,000 - 2,499 Bcf 250 – 499 Bcf gas operations 750 – 999 Bcf 0 – 249 Bcf Average local price** Pennsylvania Marcellus Shale 0.9 Tcfe 1P reserves $7.61/Mcfe +15% QoQ Sales volume 78 Bcfe +32%
Slide 23: Gas: 3Q22 performance
Banpu Gas: 3Q22 performance 3Q22 EBITDA of $377M reflected strong underlying performance post-North Texas integration, higher average local price, and additional production from the new asset and ongoing initiatives in the legacy assets. SALES VOLUMES TOTAL REALIZED REVENUE** EBITDA*** Unit: Bcf* Un
Slide 24: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2022E VS 2021 TRENDS DEMAND Unit: Mt SUPPLY DEMAND Mild weather conditions helped ease the global thermal coal market ahead of winter. However, HCV demand is expected to remain strong due to the ban on Russian coal and expected colder-than-n
Slide 25: ASPs vs thermal coal benchmark prices
Banpu ASPs vs thermal coal benchmark prices BANPU ASP VS BENCHMARK PRICES COMMENTS ▪ The overall seaborne premium thermal coal market remained extremely strong Unit: US$/t; A$/t for CEY Monthly NEX through 3Q22, mainly due to the strong gas market, as well as the wet weather in 450 major coal fields
Slide 26: Mining: group coal sales and pricing status 2022e
Banpu Mining: group coal sales and pricing status 2022e 2022e COAL SALES* SOURCE – DESTINATION ANALYSIS COAL SALES PRICING STATUS 13.1 Mt 4.3 Mt INDONESIA 2022e 6.7 1.6 Unsold 0.3 Mt 2.7 Indexed 4% S KOREA JAPAN 16% 6.4 20.4 1.1 Mt 1.0 Mt CHINA 0.5 Mt 1.5 Mt Mt*** INDIA 1.2 Mt 0.4 2.2 Mt 80% Fixed B
Slide 27: Mining: 3Q22 highlights
Banpu Mining: 3Q22 highlights Mongolia (100%) Production volume* China Gaohe and Hebi 123 Mt reserves (CV: 6,500 – 7,000 kcal/kg) 9.5 Mt +3% QoQ Sales volume* ITM Indonesia 11.1 Mt 293 Mt reserves +10% QoQ (CV: 5,950 – 6,250 kcal/kg) Operating EBITDA Centennial Under development Banpu’s portfolio of
Slide 28: Mining: operational summary
Banpu Mining: operational summary 2022E COAL OUTPUT ROM PRODUCTION AND KEY UPDATES ▪ Q3 production was slightly behind MONGOLIA prior quarter forecast. COAL ▪ Mandalong production was 2.7 2.8 2.5 2.3 impacted by an Aboriginal cave AUSTRALIA -19% QoQ step-around. COAL** -16% YoY CHINA COAL* ▪ Clarenc
Slide 29: Mining: average production cost breakdown
Banpu Mining: average production cost breakdown AUSTRALIA COAL – AVERAGE PRODUCTION COST1 Unit: A$/t 120 ▪ Achieved a record quarter profit in Q3 driven by a renewed focus on maximizing 104 high-grade thermal coal exports 94 Depreciation 88 87 ▪ 3Q22 volume dropped 19% QoQ, driving 74 Cash overhead
Slide 30: Energy Generation
Highlights Greener, Smarter Financial Energy Energy Energy 3Q22 … Faster ! Summary Resources Generation Technology 30
Slide 31: Energy Generation: 4,256 MW committed capacity
Banpu Energy Generation: 4,256 MW committed capacity Japan China Laos 8 countries operations across the Vietnam Pacific Rim USA Thailand Indonesia 3,253 MW 1,003 MW committed thermal committed renewables Solar power plant Solar rooftop equity capacity* equity capacity portfolio portfolio Solar float
Slide 32: Thermal Power: 3Q22 highlights
Banpu Thermal Power: 3Q22 highlights 548 MWe** EBITDA CHP Japan China 618 MWe gross 73 MW NAKOSO IGCC 543 MW gross $74 M +28% QoQ 396 MW SLG IPP 1,320 MW gross Laos 751 MW HPC IPP Achieved EAF Thailand 1,878 MW gross USA 717 MW BLCP IPP 1,434 MW gross 95% 100% at HPC at BLCP 768 MW TEMPLE I CCGT 768
Slide 33: Thermal Power: 3Q22 updates
Thermal Power: 3Q22 updates BLCP HPC SLG The plant’s improved EAF at While continuing to enhance its SLG achieved higher power sold in 99.9% led to higher net EAF, the plant operated without a 3Q22. After joining power trading generation QoQ, resulting in hitch and generated strong market to raise p
Slide 34: Renewable Power: diversified Asia-Pacific portfolio
Banpu Renewable Power: diversified Asia-Pacific portfolio* Japan China 243 MW 177 MW 58 MW Vietnam 1,003 MW committed renewables Thailand 118 MW capacity across Asia-Pacific 22 MW 100 MW 48 MW 62 MW Indonesia 7 MW 687 MW 198 MW 118 MW committed solar committed solar committed wind Banpu group’s port
Slide 35: Renewable Power: 3Q22 updates
Renewable Power: 3Q22 updates China Solar Due to better irradiation conditions, the capacity factor Vietnam Solar increased YoY, resulting in higher power sold. Nhon Hai solar capacity factor dropped by ▪ Average capacity factor was 16.0% 3% from unfavourable weather. The 65 MW ▪ Power sold was 63 G
Slide 36: Energy Technology
Highlights Greener, Smarter Financial Energy Energy Energy 3Q22 … Faster ! Summary Resources Generation Technology 36
Slide 37: Energy Technology: growth targets 2025
Banpu Energy Technology: growth targets 2025 SOLAR: ROOFTOP ENERGY STORAGE E-MOBILITY SMART CITIES & ENERGY & FLOATING SYSTEMS 39.7% in UMT, 30% Beyond Green, ENERGY MGMT. TRADING 47.7% in 30.0% in 21.5% in FOMM, 20% in eVolt, Including 49% in Solar ESCO Durapower New JV 18.47% in Haupcar 100% owner
Slide 38: Energy Technology: 3Q22 updates
Banpu Energy Technology: 3Q22 updates SOLAR: ENERGY SMART CITIES ENERGY ROOFTOP & STORAGE E-MOBILITY & ENERGY MGMT. TRADING FLOATING SYSTEMS SOLAR ROOFTOPS E-MOBILITY EXPANSION ELECTRICITY SALES SECURED ELECTRICITY SUPPLY AND MUVMI NEW AREA EXPANSION ENHANCED MARKETING AND SALES Increasing its opera
Slide 39: Energy Technology: 3Q22 updates (cont'd)
Banpu Energy Technology: 3Q22 updates (cont’d) SOLAR: ENERGY SMART CITIES ENERGY ROOFTOP & STORAGE E-MOBILITY & ENERGY MGMT. TRADING FLOATING SYSTEMS ALTOTECH GLOBAL EURAZEO BANPU NEXT AQUIRES 25% INTEREST IN ALTOTECH S T R AT E G I C R AT I O N A L E : GLOBAL TO STRENGTHEN EMS BUSINESSES Altotech G
Slide 40: Appendix
APPENDIX 40
Slide 41: Banpu: 'integrated energy solutions' 2022
Banpu: ‘integrated energy solutions’ 2022 ENERGY RESOURCES ENERGY GENERATION ENERGY TECHNOLOGY Shale Gas Renewable Power Solar: Rooftop & Floating 865 MMcfed 805 MW 198 MW Net production Committed Committed capacity capacity Mining Thermal Power Clean Energy Tech 1.0 GWh (100% basis) Li-ion batterie
Slide 42: Natural gas: reserve and production terms
Natural gas: reserve and production term Reserve Production DEFINITION PRODUCTION UNIT • Natural Gas Reserve Definitions in the US are • In the US, production is measured in 1000 cubic defined by the SEC and are the same as used feet (MCF) for oil: • 1000 MCF = 1 MMCF • Proved Developed Producing (P
Slide 43: China: domestic supply constraints support imports
China: domestic supply constraints support imports CHINA THERMAL COAL IMPORTS/EXPORTS* 3Q22 Unit: Mt ▪ Lockdown due to the pandemic continued to impact the economic growth in Q3. QUARTERLY (ANNUALIZED) ANNUAL ▪ Heat waves in July-August drove coal burn by utilities, but most Chinese utilities were w
Slide 44: India: coal demand to remain strong in Q4
India: coal demand to remain strong in Q4 INDIA THERMAL COAL IMPORTS* 3Q22 Unit: Mt ▪ Power demand grew moderately by about 4.7% year-on-year in Q3 due to QUARTERLY (ANNUALIZED) ANNUAL subdued industrial activities and cooling requirement decline during the rainy season. ▪ Coal-fired generation rose
Slide 45: Coal quarterly output summary
Coal quarterly output summary AUSTRALIA OPERATIONS: COAL OUTPUT (MT) – ROM OUTPUT ON EQUITY BASIS Mines CV (kcal/kg)* 1Q22 2Q22 3Q22 4Q22e Western operations 0.8 1.6 1.2 1.6 Springvale 6,700 0.1 1.1 0.7 0.7 Clarence 6,700 0.4 0.3 0.3 0.5 Airly 6,700 0.3 0.2 0.2 0.4 Northern operations 0.9 1.2 1.1 0.
Slide 46: Key external and corporate events
Key external and corporate events Federal Reserve First cases of Federal Reserve Federal Reserve Bank of Thailand Federal Reserve Bank of Thailand raised the policy monkeypox raised the policy raised the policy raised policy rate raised the policy raised policy rate rate by 0.50% reported from 12 ra
Slide 47: FX impact analysis guidance on P&L
FX impact analysis guidance on P&L CURRENCY EXPOSURE NPAT IMPACT 3Q22 (US$M) APPROXIMATE FX EXPOSURE (US$M) NPAT 5% SENSITIVITY 4Q22 (US$M) NET LIABILITY NET ASSET Assuming 5% depreciation of local currencies against USD ▪ BOT maintained forecast growth Banpu: AUD asset, -1,500 2022 to 3.3% THB and
Slide 48: Banpu consolidated balance sheet – 3Q22
Banpu consolidated balance sheet – 3Q22 3Q22 CONSOLIDATED FINANCIAL POSITION DEBT FX STRUCTURE GEARING RATIOS USD million CASH EQUIVALENT RMB Float 1,940 1% AUD Fixed 1% Net debt / Equity 1 (x) AUD TOTAL BORROWINGS USD Fixed Float THB 1.47x 1.31x 6,283 4% Float 11% 0.88x 11% THB Fixed ASSETS USD 33%
Slide 49: Banpu group EBITDA breakdown
Banpu group EBITDA breakdown 948 1,350 666 596 USD million & holding companies 4Q21 1Q22 2Q22 3Q22 100% 68% 79% AACI OVERHEAD U.S. SHALE GAS 634 275 377 167 368 322 390 264 -1 -1 0 207 167 27 28 50 61 8 36 -5 4Q21 1Q22 2Q22 3Q22 4Q21 1Q22 2Q22 3Q22 4Q21 1Q22 2Q22 3Q22 4Q21 1Q22 2Q22 3Q22 4Q21 1Q22 2
Slide 50: Banpu group net debt breakdown
Banpu group net debt breakdown 4,792 4,948 Consolidated 4,368 4,343 USD million NOT consolidated & holding companies Net debt Net cash 4Q21 1Q22 2Q22 3Q22 65% INDONESIA COAL 100% AUSTRALIA COAL 100% AUSTRALIA POWER 79% POWER 96% BNAC AUD million 522 AUD million 402 560 565 517 426 356 356 326 -655 3
Slide 51: Banpu consolidated: operating profit
Banpu consolidated: operating profit USD million 3Q22 2Q22 3Q21 QoQ% YoY% Total sales revenues* 2,397 1,773 1,161 +35% +106% Sales revenue – Coal** 1,659 1238 870 +34% +91% Sales revenue – Gas 573 387 231 +48% +148% Sales revenue – Power 149 139 39 +7% +281% Cost of sales (964) (842) (619) Gross Pro
Slide 52: Banpu consolidated: operating profit
Banpu consolidated: operating profit USD million 3Q22 2Q22 3Q21 QoQ% YoY% Gross Profit 1,433 931 542 +54% +164% GPM 60% 53% 47% SG&A (157) (117) (124) Royalty (208) (131) (87) Income from associates 92 81 64 Other income and Dividend 14 21 14 Mining property (9) (9) (9) EBIT 1,165 777 400 +50% +191%
Slide 53: Banpu consolidated: net profit
Banpu consolidated: net profit USD million 3Q22 2Q22 3Q21 QoQ% YoY% EBIT 1,165 777 400 +50% +191% Interest expenses (73) (54) (43) Financial expenses (2) (2) (3) Income tax (core business) (124) (73) (46) Minorities (167) (101) (47) Net profit before extra items 798 547 261 +46% +206% Non-recurring
Slide 54: Centennial: income statement
Centennial: income statement USD million 3Q22 2Q22 3Q21 QoQ% YoY% Sales volume (Mt) 2.3 2.8 2.7 -19% -16% Sales revenue 388.5 342.8 187.7 +13% +107% Cost of Sales (221.3) (221.1) (160.8) Gross Profit 167.2 121.8 26.9 +37% +522% GPM 43% 36% 14% SG&A (28.2) (26.9) (23.1) Royalty (24.7) (21.9) (12.4) O
Slide 55: Australia coal: quarterly equity ROM output
Australia coal: quarterly equity rom output Total equity ROM (Mt) PLANNED ACTUAL (INDICATIVE 5.0 ONLY) 4.5 4.0 3.5 2.7 2.8 NORTHERN 3.0 2.5 2.4 2.3 2.5 2.1 2.3 1.7 1.2 0.8 2.0 1.5 1.3 1.1 0.8 1.0 1.5 WESTERN 0.9 1.0 1.7 1.3 1.6 0.5 1.1 1.2 1.2 1.2 0.8 0.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22e 202
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