WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q4 2020 Earnings Presentation
48 slides from WHA Utilities and Power Public's earnings presentation, Mar 11, 2021
Slide 1: Opportunity Day 4Q'20 Results
Your Ultimate Solution Partner in Utilities & Power with Environmental Care WHA UTILITIES AND POWER PUBLIC COMPANY LIMITED Opportunity Day 4Q’20 Results 11 March 2021
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2021 Direction vi. Appendix 3
Slide 4: Vision & Mission
I. Company Overview Vision & Mission VISION “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 operations” MISSION • To develop world class utilities and power solutions fitting customer's
Slide 5: WHAUP is the Flagship Company in Utilities and Power Business of WHA Group
I. Company Overview WHAUP is the Flagship Company in Utilities and Power Business of WHA Group ▪ #1 Logistics developers, with ▪ #1 Industrial Estate Developer ▪ Exclusive utilities provider in ▪ To be one-stop service for more than 2.49 million sqm the industrial estates with Data Center developer
Slide 6: Business Overview
I. Company Overview Business Overview Utilities Business Power Business Sole provider of utilities to manufacturers/ factories in leading Active power investor with strategic partnership with leading Thai and industrial estates with a concrete plan to capture increasing demand international power co
Slide 7: Utilities Business At A Glance
I. Company Overview Utilities Business At A Glance ✓ One of the largest industrial utilities providers in Thailand ✓ Excellent track record in providing comprehensive utilities service ✓ Exclusive right for all existing and future WHA ID’s Estates in Thailand and CLMV ✓ Strong base of industrial use
Slide 8: Utilities Business - Assets Location
I. Company Overview Utilities Business - Assets Location WHAUP’s exclusive rights to operate and provide utilities services to customers cover all WHA ID’s Industrial Estates. Currently, WHAUP provides utilities services to 10 operating IEs plus 4 developing IEs (RY 36, SIL Phase 2, IRPC and Vietnam
Slide 9: Utilities Business - Our Utilities Customer Base
I. Company Overview Utilities Business - Our Utilities Customer Base WHAUP’s has established the strong operation in EEC 83% of WHAUP’s volume are distributed to area. heavy industry. Petrochemical 2020 VOLUME by IEs Others 40% 12% Consumer 5% 9% WHA 2020 ESIE 1 14% VOLUME ESIE Steel by 5% 8% INDUST
Slide 10: Power Business - Growing Portfolio
I. Company Overview Power Business - Growing Portfolio Continuing Growth from Projects Under Construction and Committed Projects in Pipeline Unit: MWeq under Operation As of the 31 December 2020, 590 MW under operation 6.7% (Incl. solar of 39.5* MW) and 11.4 MW under development CAGR 590 MW 559 MW 5
Slide 11: Power Business - Well-balanced and High Stability Portfolio
I. Company Overview Power Business - Well-balanced and High Stability Portfolio Conventional Power: 547 Equity MW Secured (91%) Highly reliable off-taker (EGAT) Long-maturity Portfolio By Type of Power Plant By Type of Sourcing Industrial 52% Users, 13% Portfolio Analysis IPP Coal 43% SPP 48% Gas 53
Slide 12: 2020 Achievement
I. Company Overview 2020 Achievement Enlarging Solar Portfolio Thailand Largest Solar Carpark 18 MW Capacity 4.9 MW New signed in 2020 MG Solar Carpark Project at WHA ESIE2 30 MW Achieved COD in Oct’20 Achieved COD in 2020 New Contracts of Value-added Products Thailand Largest Reclamation Plant Cont
Slide 13: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2021 Direction vi. Appendix 13
Slide 14: Executive Summary
II. Executive Summary Executive Summary 2020 NNI reported at 763.7 MB, down 56% YoY mainly due to the decrease of normalized share of profit from GHECO-One. While 4Q’20 NNI reported at 172.2 MB, down 12% QoQ mainly due to no dividend income from GIPP and lower contribution from GHECO-One despite hig
Slide 15: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2021 Direction vi. Appendix 15
Slide 16: Utilities Business - Total Sales & Management Volume
III. Operating Performance Utilities Business - Total Sales & Management Volume * Utilities Portfolio Growth – Sales & Management Volume +4% +2% +4% -10%** -6%** +6%** YoY% QoQ% 110.0 114.5 YoY% 28.6 29.2 28.1 3.1 RW -8% -1% 18.5 RW -8% 2.8 5.0 35.4 5.2 IW -11% 6% 31.1 IW -14% 8.6 8.0 0.2 7.4 Value
Slide 17: Utilities Business - SDWTP
III. Operating Performance Utilities Business - SDWTP SDWTP - Average daily sales volume (100%) '000 cmd 200 Monthly Avg. 150 Quarterly Quarter Volume Volume (mm3) (1000’cmd) 100 1Q'20 118 10.9 2Q'20 140 12.8 50 3Q'20 160 14.5 4Q'20 155 14.2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 20 20
Slide 18: Power Business - IPP Group
III. Operating Performance Power Business - IPP Group Key Highlights 12M’20 GHECO-One HHPC • 94.3% Availability Rate • Lower dispatch by 24.9% YoY GIPP • Continue to stay on reserved shutdown mode • 97.5% Availability rate YTD GWh 2019 (A) 2019 (A) % AF Energy Dispatch 2020 (A) Availability 2020 (A)
Slide 19: Power Business - IPP Group (Cont'd)
III. Operating Performance Power Business - IPP Group (Cont’d) Key Highlights 4Q’20 GHECO-One HHPC • Availability at 94.0% for 3Q’20 • Lower dispatch by 39% YoY o Forced outage total 2 days GIPP • Continue to stay on reserved shutdown mode • 90% Availability rate Quarterly 4Q’19 (A) 4Q’19 (A) GWh 4Q
Slide 20: Power Business - SPP Group
III. Operating Performance Power Business - SPP Group Key Highlights 12M’20 • 4 out of 8 SPPs performed planned maintenance in 2020 while it was just one plant in 2019 • IU power demand was lower by around 3% YoY due to negative impact from planned maintenance and lower demand resulting from COVID-1
Slide 21: Power Business - SPP Group (Cont'd)
III. Operating Performance Power Business - SPP Group (Cont’d) YTD EGAT GWh Energy Dispatch IU 865 904 888 6,665 -2.1% 6,527 843 863 841 854 832 780 806 797 798 812 781 783 746 1,595 -2.8% 257 1,550 205 220 220 195 171 250 227 212 179 202 202 193 140 126 145 -1.8% 637 643 645 646 641 641 647 638 638
Slide 22: Power Business - SPP Group Quarterly 4Q'20 vs 4Q'19
III. Operating Performance Power Business - SPP Group Quarterly – 4Q’20 vs 4Q’19 EGAT GWh Energy Dispatch IU 233 -2.8% 213 213 212 215 214 212 217 219 1,699 1,651 204 204 207 198 206 194 190 379 66 +11.7% 52 43 423 50 46 47 40 62 66 59 52 50 39 54 40 35 -7.0% 169 167 167 167 166 165 164 1,320 159 15
Slide 23: Power Business - SPP Group Quarterly 3Q'20 vs 4Q'20
III. Operating Performance Power Business - SPP Group (Cont’d) Quarterly – 3Q’20 vs 4Q’20 EGAT GWh Energy Dispatch IU 1,720 -4.0% 1,651 227 238 213 224 215 213 217 223 204 204 203 206 198 206 407 186 194 +4.0% 423 69 56 55 54 37 54 33 62 66 59 52 50 39 54 40 49 1,313 -6.5% 171 170 169 170 169 169 1,
Slide 24: Power Business - Solar Performance
III. Operating Performance Power Business - Solar Performance Energy Dispatch – Total Quarterly YTD MWh. MWh. +216.1% +242.2% +34.2% 25,885.4 8,906.3 6,634.8 21,181.5 7,891.6 5,454.7 8,188.8 2,602.8 3,104.3 1,373.2 -31.3% -13.6% 4,417.6 -5.2% 4,189.0 1,060.5 898.5 1,039.6 169.1 -15.3% -17.3% 140.4 6
Slide 25: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2021 Direction vi. Appendix 25
Slide 26: Financial Highlight 12M'20 vs 12M'19
IV. Financial Performance Financial Highlight 12M’20 vs 12M’19 Unit : THB mm 12M’19 12M’20 YoY Remarks Total Revenue 1,857.2 1,698.0 -9% - Lower domestic utilities sale volume by 10% due to - Utilities Business 1,847.1 1,642.6 -11% drought and Covid-19 - Lower Excessive Charge by 96.4 MB - Revenue f
Slide 27: Financial Highlight 4Q'20 vs 4Q'19
IV. Financial Performance Financial Highlight 4Q’20 vs 4Q’19 Unit : THB mm 4Q’19 4Q’20 YoY Remarks Total Revenue 470.0 446.9 -5% - Lower Excessive charge of 26.7 MB and lower utilities - Utilities Business 465.6 427.0 -8% demand of 12.0 MB - Revenue from Solar Rooftop projects continued to - Power B
Slide 28: Financial Highlight 4Q'20 vs 3Q'20
IV. Financial Performance Financial Highlight 4Q’20 vs 3Q’20 Unit : THB mm 3Q’20 4Q’20 QoQ Remarks Total Revenue 416.9 446.9 7% - Higher Utilities Sales Volume from Raw Water and - Utilities Business 402.1 427.0 6% Industrial & Value-added Water - Revenue from Solar Rooftop projects continued to - P
Slide 29: Utilities Business - Domestic Revenue and Gross Profit Margin
IV. Financial Performance Utilities Business – Domestic Revenue and Gross Profit Margin Total Revenue from Utilities Business decreased by 11.1%YoY and 8.3%YoY for 4Q’20 and 12M’20 respectively but increased by 6.2% QoQ. Total Revenue - Utilities Business Gross Profit Margin - Utilities Business Uni
Slide 30: Utilities Business - Vietnam
IV. Financial Performance Utilities Business - Vietnam Share of Profit Quarterly YTD Unit : MB Unit : MB 188.6 188.6 Cua47.1 47.1 Lo Cua Lo SDWTP w/o PPA SDWTP w/o PPA amortization amortization 0.8 1.1 0.2 0.9 SDWTP w/ PPA 0.9 1.7 3.6SDWTP w/ PPA amortization amortization (14.3) (14.3) (27.8) (27.8)
Slide 31: Power Business - Key Headlines
IV. Financial Performance Power Business – Key Headlines 4Q’20 and 12M’20 IPP Business: GHECO-One • APR1 drop from previous year • Lower Energy Margin from unfavorable coal price • Started tax rate 10% since Nov/2019 (after applying 8-year tax exemption since Nov/2011) GIPP • Dividend payment of 36.
Slide 32: Power Business - Normalized Share of Profit and Dividend Payment
IV. Financial Performance Power Business – Normalized Share of Profit and Dividend Payment Normalized Share of Profit and Dividend Income for 3Q’20 and 9M’20 decreased 30.0%YoY and 35.0%YoY, respectively and also decreased 12.2% QoQ. /1 Normalized Share of Profit and Dividend Income Share of Profit
Slide 33: Profit and Loss Statement - 12M'20 vs 12M'19
IV. Financial Performance Profit and Loss Statement – 12M'20 (A) Vs 12M'19 (A) Normalized Net Income (NNI) w/ SDWTP PPA Amort. 12M’20 (A) Vs 12M’19 (A), -969.2 MB or -55.9% + Positive • Lower Tax (+38.7 MB) mainly due to lower Earnings Before Tax (EBT) - Negative • Lower Gross Profit before Deprecia
Slide 34: Capital Structure and Financial Ratio
IV. Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 31 December 2020 Unit : THB mm Unit : THB mm 3,750 3,540 26,419 26,419 26,172 26,172 2,640 2,000 250 2,000 11,757 12,866 250 1,500 1,103 250 1,320 1,148 2,390 13,559 12,157 1,5
Slide 35: Dividend for FY2020
IV. Financial Performance Dividend for FY2020 • Dividend Payment DPS No. Remark (THB/Share) 1 Interim 0.0925 Already paid in December 2020 2 Additional 0.1600 Subject to AGM in April 2021 Total 0.2525 • Dividend Payout Ratio Consolidated Separate Unit Financial Statements Financial Statements Net Pr
Slide 36: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2021 Direction vi. Appendix 36
Slide 37: Utilities - Growing Beyond the Core with SMART Services Platform
V. 2021 Direction Utilities - Growing Beyond the Core with SMART Services Platform • To Supply Value-added Products Wastewater to Industrial Customers Leveraging Our Reclamation Expertise to offer Exploring Potential Value-added Alternative Raw Water Products Resource 1,900,000 m3/yr capacity • To s
Slide 38: Utilities - Accelerating our Expansion in Vietnam
V. 2021 Direction Utilities - Accelerating our Expansion in Vietnam WHA Nghe An Industrial Zone 1 Duong River Surface Water : Increasing water distribution Treatment Plant : Increasing volume and utilization of customers base and water supply 76 wastewater treatment capability coverage areas to near
Slide 39: Power - Enlarging Solar Portfolio 300 MW
V. 2021 Direction Power – Enlarging Solar Portfolio 300 MW 2023(F) 21 projects COMMISSIONING in 2020 90 MW with a total capacity of 30 MW 51 MW 2021(F) (Total 40 Equity MW in operations as of 2020) 33 MW 2020(A) 2019 (A) 9 new projects SIGNED with Industrial Users with a total capacity of 18 MW Cumu
Slide 40: Power - Accelerating Business Growth
V. 2021 Direction Power – Accelerating Business Growth Introducing Innovation And Smart Solutions Actively Exploring Vietnam Opportunities P2P Energy Trading WHAUP collaborates with PEA in studying and implementing P2P Energy Trading System in WHA’s Industrial Estates Explore Potential 1 Investment
Slide 41: 2021 Target
V. 2021 Direction 2021 Target Total Water Sales & Management Volume Financial Target 19 29 Million M3 114 153 +34% Total Revenue Million M3 International International Million M3 and Normalized Million M3 YoY Share of Profit 2020 2021F +25% EBITDA Margin CAPEX Target Power Capacity at least 2021 - 2
Slide 42: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2021 Direction vi. Appendix 42
Slide 43: Power Business - GHECO-One
VI. Appendix Power Business - GHECO-One Availability Payment Profile with TFRS15 • Even though TFRS15 is applied, there is a significant drop of net AP revenue from 2019 to 2020. But expected to maintain at this level going forward TFRS 15 – Revenue Profile of GHECO-One 1 AP Revenue without TFRS 15
Slide 44: Consolidated Performance
VI. Appendix Consolidated Performance Consolidated EBITDA/1 and EBITDA Margin Consolidated Net Profit and Net Profit Margin/4 Unit : THB mm Unit : THB mm 55% 64% 52% 58% 71% 56% 44% 60% 58% 66% 52% 49% 49% -37.3% 39% 29% 29% 28% 30% -55.9% 28% 26% 2,740.8 59.8 2,137.2 344.5 59.8 344.5 1,519.7 -29.9%
Slide 45: Profit and Loss Statement - 4Q'20 vs 4Q'19
VI. Appendix Profit and Loss Statement – 4Q'20 (A) Vs 4Q'19 (A) Normalized Net Income (NNI) w/ SDWTP PPA Amort. 4Q’20 (A) Vs 4Q’19 (A), -149.8 MB or 46.5% + Positive • Lower Tax (+23.1 MB): mainly due to lower EBT, BOI tax benefit, and lower tax from no dividend income from GIPP in 4Q’20 - Negative
Slide 46: Profit and Loss Statement - 4Q'20 vs 3Q'20
VI. Appendix Profit and Loss Statement – 4Q'20 (A) Vs 3Q'20 (A) Normalized Net Income (NNI) w/ SDWTP PPA Amort. 4Q’20 (A) Vs 3Q’20 (A), - 22.6 MB or -11.6% + Positive • Higher Gross Profit before Depreciation (+6.6 MB): mostly due to higher contribution from Industrial Water as demand improved and s
Slide 47: Shareholders and Management Structure
VI. Appendix Shareholders and Management Structure Shareholding Structure Board of Directors Foreign Mr. David Richard Nardone Ms. Jareeporn Jarukornsakul Institutions Retail 2% 18% Chairman of Board of Directors Director Domestic Institutions 7% WHA Group Mr. Vivat Jiratikarnsakul Dr. Niphon Bundec
Slide 48: Power
Power
WHA Utilities and Power Public Company — Q4 2020 Earnings Presentation on 6ix