Absolute Clean Energy Pcl · SET:ACE
Absolute Clean Energy Pcl — Absolute Clean Energy Public Company — Investor Presentation (November 2020)
66 slides from Absolute Clean Energy Pcl's investor presentation, November 2020
Slide 1: Absolute Clean Energy Public Company Limited - Brief Company Information
Absolute Clean Energy Public Company Limited Brief Company Information Nov 2020 Ticker: ACE (SET100)
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form whole or part of any offer, invitation or solicitation by or on behalf of the Company for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any
Slide 3: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 3
Slide 4: Company Overview
ACE Company Overview ABSOLUTE CLEAN ENERGY PUBLIC COMPANY LIMITED clean and sustainable power producer _
Slide 5: Who is ACE?
Company Overview Who is ACE? 40 Years Strong foundation in Integrated Agricultural Industry “To be the world practical model of Clean energy powerplant, which is responsible for environment, society, and shareholders” “เป็ นโรงไฟฟ้าพลังงานสะอาดต้ นแบบของโลกที่มีความรับผิดชอบต่ อสิ่งแวดล้อม สังคม และ
Slide 6: ACE at a Glance
Company Overview ACE at a Glance Strong foundation in Abundant biomass feedstock Innovative Integrated Agricultural supported by communities surrounding Private Industry the power plants Power Producer for Absolute Clean Energy Ongoing Improvement with Innovative Technology Innovative Technology and
Slide 7: ACE at a Glance
Company Overview ACE at a Glance 35+1 Power Plants/1 Biomass (12+14+1)/1 (18 in Operations) 317.9 MW/1 439.67+9.9 MW/1 Innovative Private Power Producer for MSW (1+1) Absolute 12.0 MW Clean Energy Solar (4+2) 5.32 MW Co-generation (1+0) 114.35 MW Expected Installed Capacity 1 GW (Gross) +36% MW CAGR
Slide 8: ACE's Biomass Powerplant (12+14+1, 317.9 MW)
Company Overview ACE’s Biomass Powerplant (12+14+1, 317.9 MW)/1,/2,/3 ACP1 Ban Bueng ALCP1 Si Chiang Mai AAPP2 Chokchai ACP2 Phonthong ALCP2 Sirindhorn AAP1 Nam Phong ACP3 Bo Ploy AAPP1 Tanee ABA1 Thoen Remark: /1 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP sha
Slide 9: ACE's Biomass Powerplant (12+14+1, 317.9 MW)
Company Overview ACE’s Biomass Powerplant (12+14+1, 317.9 MW) UWC Komen Biomass UWC Amphan & SBM Satuek Biomass 9 Strictly Private & Confidential
Slide 10: ACE's MSW Powerplant (1+1, 12MW)
Company Overview ACE’s MSW Powerplant (1+1, 12MW)/1 MSW Khon Kaen Remark: /1 Capacity MW 10
Slide 11: ACE's Co-generation Powerplant (1+0, 114.35 MW)
Company Overview ACE’s Co-generation Powerplant (1+0, 114.35 MW)/1 AAA Chachoengsao Remark: /1 Capacity MW 11
Slide 12: ACE's Solar Powerplant (4+2, 5.32 MW)
Company Overview ACE’s Solar Powerplant (4+2, 5.32 MW)/1 SOLAR ROOFTOP 1 Project SOLAR ROOFTOP 1 Project Sri racha, Chonburi (Extension), Sri racha, Chonburi SOLAR ROOFTOP 2 Project SOLAR ROOFTOP 3 Project Chok Chai, Nakhon Ratchasima Mueng, Samut Sakhon Remark: /1 Capacity MW 12
Slide 13: ACE at a Glance
Company Overview ACE at a Glance >90% Capacity Factor/1 Feedstock Burn Capability Biomass: 98% > Listed Peer : 94% ACE: Up to 65% moisture MSW: 96% > Listed Peer : 72% content/2 of mixed Innovative Cogeneration: 82% > Listed Peer: 80% fuel Private Others: Up to 40% Power Producer Unit : MW for Absol
Slide 14: ACE's Key Development Milestones
ACE’s Key Development Milestones “To be the world practical model of Clean energy powerplant, which is responsible for environment, society, and shareholders” 2024: Expected to secure an installed capacity 2017: 2019: of 1,000 PPA MW 2012: 2016: Listed in Stock and becomes Won and secured 4 First CO
Slide 15: Overview of ACE's Portfolio
Overview of ACE’s Portfolio A ACE Business Portfolio in Thailand Power Type Biomass Co-generation MSW Solar ACE’s Holding 100.0% 100.0% 100.0% 100.0% 100.0% Stake in Projects Existing + Pipeline COD: 18 12+14+1/1 1+0 1+1 4+2 Pipeline: 18/1 Projects Total: 36/1 Capacity MW COD: 239.91 116 1.76 (Total
Slide 16: Well-Balanced Portfolio with Diversified Locations
Well-Balanced Portfolio with Diversified Locations Installed / Type PPA MW Location COD / SCOD Date Status Assets Overview Equity MW 1 VSPP - Biomass 9.9 8 Chonburi 4/24/2012 ▪ Operating projects ▪ Under development projects and 2 VSPP - Biomass 9.9 8 Khonkaen 5/2/2012 Pending for development projec
Slide 17: ACE's Group Structure
Company Overview ACE’s Group Structure (Holding Company) COD Under Development + Pending for Development 100% Asia Clean Energy (“ASCE”) (Holding Company) Operating Company 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Advance Advance Alliance Advance Asia Advance Bio Advance Bio Advan
Slide 18: ACE's Board of Directors
Company Overview ACE’s Board of Directors PRANAI SUWANRATH, Independent Director Chairman of the Board of Directors • Current: The Thai Red Cross- Director • Ex-Chairman of the BOD, MEA • Ex-Permanent secretary of the Ministry of Interior CHAROON INTACHAN, CHONTICHA CHITRARPORN, PATCHANEE SUTHEEVITA
Slide 19: ACE's Strategy, Core Value & Competency
Company Overview ACE’s Strategy, Core Value & Competency ACE’s Core Competency ACE’s Core Value Operation สร ้างประสิทธิภาพ ส่งเสริมพัฒนา Sustainable ทีมงาน สะสาง growth สร ้างสรรค ์ความ ปลอดภัย 9ส สะดวก Research & Innovation for สร ้างนิ สย ั Development production Efficiency สะอาด Improvement ใส่ใ
Slide 20: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 20
Slide 21: Industry Overview and Growth Potential
Industry Overview and Growth Potential
Slide 22: Electricity Consumption, Resilience Growth Throughout Country Crisis
Industry Overview and Growth Potential Electricity Consumption, Resilience Growth Throughout Country Crisis Electricity consumption is gradually growing amid the country’s instability World Electricity Consumption Unit: tWh 25,000 20,000 15,000 10,000 5,000 - 2008 2009 2010 2011 2012 2013 2014 2015
Slide 23: Global and Domestic Trend to Support Renewable Energy
Industry Overview and Growth Potential Global and Domestic Trend to Support Renewable Energy Paris Agreement: Around 88% of the world have ratified or acceded to the Agreement. Thailand government has ratified the agreement. Ratified Signed Not Signed/Withdrawing World Zero Carbon: Government around
Slide 24: Electricity Consumption Growth Rate
Electricity Consumption Growth Rate Growth: 17.90% Growth: 10.50% (2012-2020) (2019-2030) Cambodia Laos Growth: 19.80% Growth: 12.00% (2010-2035) (2018-2030) Myanmar Vietnam 24
Slide 25: International and Domestic Trend to promote and support Renewable Energy
Industry Overview and Growth Potential International and Domestic Trend to promote and support Renewable Energy Paris Agreement Set a global goal to reach zero carbon emissions in the second half of the century Thailand Constitution of the Kingdom of Reformation Plan of the Country PDP 2018 Proposal
Slide 26: Constitution, National Strategy and Government Commitment to Renewable Energy
Industry Overview and Growth Potential Constitution of the Kingdom of Thailand, 20 years National Strategy, Country Reformation and Government Commitment to Support Renewable Energy According to Constitution of the Kingdom of Thailand, Section 6 Number 5: Thailand will develop and support the produc
Slide 27: Total Societal Impact (TSI) and ESG
Industry Overview and Growth Potential Total Societal Impact(TSI) and Environmental, Social and Governance (ESG) Biomass Power plant Contribute to the Paris Agreement Decreasing greenhouse gas emission. Future Potential To provide base-load to grid instead of conventional energy • Saves government’s
Slide 28: Renewable Energy Contribute Largest Portion (37%) of Increased Capacity
Industry Overview and Growth Potential Renewable Energy Contribute Largest Portion (37%) of Increased Capacity According to the Power Development Plan (PDP) 2018 hearing, Renewable Energy is targeted to contribute the largest portion, or 37%, of the total new increased capacity by 2037. Potential MW
Slide 29: Renewable Energy Contribute Largest Portion (37%) of Increased Capacity
Industry Overview and Growth Potential Renewable Energy Contribute Largest Portion (37%) of Increased Capacity According to the Power Development Plan (PDP) 2018 hearing, Renewable Energy is targeted to contribute the largest portion, or 37%, of the total new increased capacity by 2037. Potential MW
Slide 30: Renewable Energy will provide 46% of Thailand's Electricity by 2037
Industry Overview and Growth Potential Renewable Energy will provide 46% of Thailand’s Electricity by 2037 Renewable energy portion will move from 26% in 2018 to 46% in 2037 % Electricity Capacity by Source of Total Capacity for 2018 and 2037 Electricity Capacity of Each Renewable Source for 2017 an
Slide 31: Biomass: The largest renewable energy contributor in Thailand
Industry Overview and Growth Potential Biomass : The largest renewable energy contributor in Thailand Looking at GWh contribution to grid, Biomass is the largest contributor to renewable energy growth in Thailand Electricity contribution/1 of Each Renewable Source of from 2017 to 2037/2 Unit: GWh 45
Slide 32: ACE's Historical, Current and Future Growth
Industry Overview and Growth Potential ACE’s Historical, Current and Future Growth Continuous growth with existing PPA along with future potential growth supported by favorable government renewable energy policy Existing and Pipeline of Company’s MW/1,/2 Existing, Under-Development and Pending for D
Slide 33: Future Growth
Industry Overview and Growth Potential Future Growth Continuous growth with existing PPA along with future potential growth supported by favorable government renewable energy policy Existing and Pipeline of Company’s MW/1,/2 2025 – 2037 Contract Capacity MW according to PDP 2018 Biomass Future Growt
Slide 34: Proven by Recent Bidding
Industry Overview and Growth Potential Proven by Recent Bidding Won the largest portion of MW in the 2017 SPP Hybrid Bidding (Renewable) 2017 Biomass Bidding Potential Upcoming Community Biomass/Biogas PPA/1 Largest bidding winner out of 42 candidates in the 2017 SPP Hybrid Bidding (Renewable) Unit
Slide 35: ACE's Core Value Represent Competitive Advantage to Secure New PPAs
Industry Overview and Growth Potential ACE’s 3 Core Value Represent Competitive Advantage to Secure New PPAs 1 Advance Technology ✓ Lower plant heat rate = less fuel consumption by up to 30% R&D ✓ Artificial Intelligence, IoTs and Big ✓ Fuel crops from major data for cost control and shareholders’ p
Slide 36: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 36
Slide 37: Core Competitive Advantages
Company Core Competitive Advantages
Slide 38: Company Core Competitive Advantages
Company Core Competitive Advantages 1 Thailand’s Leading Integrated Power Producer with highest growth potential /1 2 Proven Operational Capabilities 3 Secured Cash Flow Supported by PPA with EGAT/PEA 38 Remark: /1 Estimated approximate MW growth during 2019-2022; Estimated MW growth of peers based
Slide 39: Target to Secure 1 GW Installed Capacity within 2024
Company Core Competitive Advantages– Leading Integrated Renewable Power Producer Target to Secure 1 GW Installed Capacity within 2024 2019 2022/1,/2 2024 COD Capacity : 212.18 MW COD Capacity : 449.27 MW COD Capacity : 449.27 +[x] MW COD + Secure Pipeline : 421.37 MW /1 COD + Secure Pipeline : 449.2
Slide 40: Leading Biomass Power Producer in Thailand: Distinguished Efficiency
Company Core Competitive Advantages – Proven Operational Capabilities Leading Biomass Power Producer in Thailand ACE’s in-house R&D capabilities results in feedstock and O&M cost reduction with the target to reduce feedstock cost approx. 5% – 15% for current plant and 24.7%-27.8% on top for pipeline
Slide 41: Leading Biomass Power Producer in Thailand: Potentially Improving Margin
Company Core Competitive Advantages – Proven Operational Capabilities Leading Biomass Power Producer in Thailand ACE’s in-house R&D capabilities results in feedstock and O&M cost reduction with the target to reduce feedstock cost approx. 5% – 15% for current plant and 24.7%-27.8% on top for pipeline
Slide 42: Leading Biomass Power Producer in Thailand: Upside potential
Company Core Competitive Advantages – Proven Operational Capabilities Leading Biomass Power Producer in Thailand ACE’s in-house R&D capabilities results in feedstock and O&M cost reduction with the target to reduce feedstock cost approx. 5% – 15% for current plant and 24.7%-27.8% on top for pipeline
Slide 43: Most Efficient MSW Power Producer in Thailand
Company Core Competitive Advantages – Proven Operational Capabilities Most Efficient MSW Power Producer in Thailand ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven Tra
Slide 44: Ministers of Interior and Energy visited MSW KK Plant
Company Core Competitive Advantages – Proven Operational Capabilities Thailand’ Minister of Interior and Minister of Energy visited MSW KK Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced Internationa
Slide 45: Energy Regulatory Commission visit MSW KK Plant
Company Core Competitive Advantages – Proven Operational Capabilities Energy Regulatory Commission visit MSW KK Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven T
Slide 46: Sri Lanka Supreme Ambassadors visit MSW KK Plant
Company Core Competitive Advantages – Proven Operational Capabilities Sri Lanka’ Supreme Ambassadors visit MSW KK Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven
Slide 47: Bangladesh's Minister visit MSW KK Plant
Company Core Competitive Advantages – Proven Operational Capabilities Bangladesh’s Minister visit MSW KK Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven Track Re
Slide 48: MSW KK Plants Intrigued Regional Municipal
Company Core Competitive Advantages – Proven Operational Capabilities MSW KK Plants Intrigued Regional Municipal Environmental Inspection Division Team Indonesia Vice President Deligation visited Director-General of the Department of Local visited MSW KK powerplant MSW KK powerplant Administration v
Slide 49: MSW KK Plants Intrigued Regional Municipal
Company Core Competitive Advantages – Proven Operational Capabilities MSW KK Plants Intrigued Regional Municipal Phuket Municipal visited MSW KK powerplant Udonthani Municipal visited MSW KK powerplant Executive Committee of local administrative organization from Surat Thani visited MSW KK powerplan
Slide 50: MSW KK Plants Intrigued Regional Municipal
Company Core Competitive Advantages – Proven Operational Capabilities MSW KK Plants Intrigued Regional Municapal Management team from Maha Sarakham Municipal Board of Directors, Ministry of Energy and Ministry of Local Local government leaders from Songkhla Administration from Bangladesh visted MSW
Slide 51: Most Efficient MSW Power Producer: Upside potential in the near future
Company Core Competitive Advantages – Proven Operational Capabilities Most Efficient MSW Power Producer in Thailand ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven Tra
Slide 52: Competitive SPP Co-Generation Power Producer
Company Core Competitive Advantages – Proven Operational Capabilities Competitive SPP Co-Generation Power Producer Defensive scheme of Co-Generation Power Plant would help balance risk scheme of company’s powerplant portfolio Advanced Continuing Professional Run Proven Track Record Upside Potential
Slide 53: Competitive SPP Co-Generation Power Producer: Upside potential
Company Core Competitive Advantages – Proven Operational Capabilities Competitive SPP Co-Generation Power Producer Defensive scheme of Co-Generation Power Plant would help balance risk scheme of company’s powerplant portfolio Advanced Continuing Professional Run Proven Track Record Upside Potential
Slide 54: Secured Cash Flow Supported by PPA with EGAT/PEA
Company Core Competitive Advantages – Secure Cash Flow Supported by PPAs with EGAT/PEA Secured Cash Flow Supported by PPA with EGAT/PEA Reliable revenue source with high efficiency and controlled cost can guarantee cash flow to the company Biomass MSW Co-Generation 8% 10% Industrial Users Industrial
Slide 55: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 55
Slide 56: Financial Highlights
ACE Financial Highlights ABSOLUTE CLEAN ENERGY PUBLIC COMPANY LIMITED
Slide 57: Robust Revenue Growth with Diversified Revenue Mix
Financial Highlights Robust Revenue Growth with Diversified Revenue Mix Revenue/1 Revenue Breakdown by Customer 1% 6,000 4,833 4,951 4,500 4,243 3,000 99% 1,245 1,286 1,500 2019 0 Electricity sales to EGAT and PEA 2017 2018 2019 Q3'2019 Q3'2020 Sales to IUs Sales Revenue Revenue Breakdown by Type of
Slide 58: Robust Financial Performance
Financial Highlights Robust Financial Performance Financial track record shows strong and consistent revenue, EBITDA and net profit growth with continuous margin expansion. Gross Profit and Gross Profit margin/1 EBITDA/2 and EBITDA margin/1 (THB mm) (THB mm) 2,500 35.9% 40% 2,500 60% 34.2% 32.8% 29.
Slide 59: Robust Financial Performance
Financial Highlights Robust Financial Performance Financial track record shows strong and consistent revenue, EBITDA and net profit growth with continuous margin expansion. Net Profit and Profit margin/1 Adjusted Net Profit/2 and Net Profit Margin/1 (THB mm) (THB mm) 1,500 40% 1,500 60% 50% 31.9% 30
Slide 60: ACE Outstanding Debt and Leverage Ratio
ACE Outstanding Debt and Leverage Ratio ACE’s Leverage Ratio Unit: THB mln December 31 September 30 2017 2018 2019 Q3’20 Current Interest-bearing debt 3,328 1,166 1,084 748 Non-Current Interest-bearing debt 5,197 6,632 1,911 3,198 Total interest-bearing debt 8,525 7,798 2,995 3,946 Cash equivalent a
Slide 61: Strong Financial Position to Accelerate growth
Financial Highlights Strong Financial Position to Accelerate growth ACE’s Interest Expense Unit: THB mln December 31 September 30 2017 2018 2019 Q3’20 Current Interest-bearing debt 3,328 1,166 1,084 748 Non-Current Interest-bearing debt 5,197 6,632 1,911 3,198 Total interest-bearing debt 8,525 7,798
Slide 62: Profitability Ratio
Financial Highlights Profitability Ratio Return on Asset Return on Equity 20.6% 14.7% 13.3% 12.4% 12.5% 12.5% 9.8% 10.3% 8.1% 7.9% 6.9% 5.2% 5.8% 3.9% 2.4%2.8% 2017 2018 2019 Annualized Q3'20 2017 2018 2019 Annualized Q3'20 Return on Asset Return on Asset (excluding lease) Return on Equity Return on
Slide 63: Notable Additional Information
Financial Highlights Notable Additional Information General biomass powerplants have an average useful life of approximately 25-30 years/1, 30-60 years/1 for 1 co-generation powerplant and 25-30 /1 years for MSW powerplant ACE’s powerplants located in strategic land owned by itself could result to t
Slide 64: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 64
Slide 65: Key Takeaways
ACE Key Takeaways ABSOLUTE CLEAN ENERGY PUBLIC COMPANY LIMITED Pa -““ACP1” VSPP Banbueng Project
Slide 66: ACE's Key Strengths and Opportunities
Key Takeaways ACE’s Key Strengths and Opportunities 1 Thailand’s Leading Integrated Power Producer with Highest Growth Potential ▪ Largest biomass Power Producer supported by PPA with PEA in Thailand ▪ No. 1 Renewable Power Producer in Thailand in term of Equity MW Growth 2 World Megatrend ▪ “Electr
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