WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q1 2023 Earnings Presentation
53 slides from WHA Utilities and Power Public's earnings presentation, May 19, 2023
Slide 1: Q1'2023 Analyst Meeting
Q1’2023 Analyst Meeting WHA Utilities and Power Public Company Limited 19 May 2023
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: Company Overview
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 3
Slide 4: Business Overview
I. Company Overview Business Overview Utilities Business Power Business Sole provider of utilities to manufacturers/ factories in leading Active power provider and investor with strategic partnership with industrial estates with a concrete plan to capture increasing leading Thai and international po
Slide 5: Power Business – Portfolio Breakdown
I. Company Overview Power Business – Portfolio Breakdown Total Capacity (699 MW eq) : 644 MW eq under Operation + 55 MW eq under development By Type By Off-taker Analysis 3% 0.4% Portfolio Analysis Gas (42%, 297 MW eq) EGAT/ PEA/ MEA 21% Coal (33%, 231 MW eq) 33% Industrial Users Total Portfolio Tot
Slide 6: Executive Summary
I Company Overview II Executive Summary III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 6
Slide 7: Key Highlights
II. Executive Summary Key Highlights Unit : MB % change Q1’22 Q4’22 Q1’23 YoY QoQ 1) Revenue, Normalized Share of Profit and Dividend Income 608.0 654.3 813.3 34% 24% 1.1 Revenue 575.4 659.0 639.7 11% -3% - Utilities Business/1 512.5 495.5 522.5 2% 5% - Power Business/2 51.9 153.7 110.7 113% -28% -
Slide 8: Operating Performance
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 8
Slide 9: Utilities Business - Total Sales and Management Volume
III. Operating Performance Utilities Business - Total Sales and Management Volume* YoY/QoQ Unit : Million M3 -3% 4% 35.7 34.8 33.6 5.8 6.7 7.7 9.5 8.8 8.3 1.2 1.5 29.9 28.1 1.4 25.8 12.9 Domestic 11.2 Domestic 10.7 Domestic -6% +9% 6.2 6.6 5.5 Q1'22 (A) Q1'23 (A) Q4'22 (A) RW IW Value Added WW Vietn
Slide 10: Power Business - IPP Group
II. Operating Performance Power Business - IPP Group GHECO-One • Planned maintenance outage 54 days (15 Jan - 9 Mar 2023) and reserved shutdown since 10 Mar 2023 (vs 18-day maintenance in Q1’22: unplanned maintenance 11-day and forced outage 7-day) GIPP • EGAT dispatched GIPP of 79 GWh in Q1’23 (vs
Slide 11: Power Business - SPP Group
II. Operating Performance Power Business - SPP Group SPP Business: • Total dispatch dropped by -3.0% YoY due to -1.6% lower EGAT dispatch and -7.2% IU dispatch. • No major planned maintenance in both Q1’22 and Q1’23 (Zero planed maintenance in Q1’22 vs 10 days planned maintenance and 8 days unplanne
Slide 12: Power Business - Solar Energy Dispatch
II. Operating Performance Power Business - Solar Energy Dispatch Power Dispatch : Solar energy dispatch continued to increase in accordance with capacity under operation (59.1 MW as of Q1’22 vs 94.0 MW as of Q1’23) YoY/QoQ Unit : GWh +45% +48% 25.3 17.5 17.1 Q1'22 (A) Q1'23 (A) Q4'22 (A) 19 May 2023
Slide 13: Financial Performance
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 13
Slide 14: Financial Highlight Q1'23 vs Q1'22
IV. Financial Performance Financial Highlight Q1’23 vs Q1’22 Q1’22 Q1’23 YoY Remarks Unit: THB mm 1. Total Revenue, NSOP and 608.0 813.3 34% Dividend Income 1.1 Total Revenue 575.4 639.7 11% - Growth in domestic utilities revenue mainly due to an increase of water tariff adjustment and higher Excess
Slide 15: Power Business – Normalized Share of Profit and Dividend Income
IV. Financial Performance /1 Power Business – Normalized Share of Profit and Dividend Income Normalized Share of Profit and Dividend income increased by 177.0% YoY. +177.0% Unit: THB mm 189.7 6.9 - 8.7 68.5 0.5 25.0 7.2 0.2 174.8 113.1 11.0 10.5 (8.0) (3.9) (86.3) (1.8) Q1'22 Q1'23 Gheco-One SPP Ste
Slide 16: IU Gas Spread of SPP Business
IV. Financial Performance IU Gas Spread of SPP Business IU Tariff vs Gas Cost (THB/kWh) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 (F) (F) (F) Avg. total tariff Gas cost 19 May 2023 16
Slide 17: Utilities Business: Normalized Share of Profit (Vietnam)
IV. Financial Performance Utilities Business : Normalized Share of Profit (Vietnam) SDWTP Unit : MB Q1'22 (A) Q1'23 (A) 90.4% (2.4) Share of profit excl. PPA amort. PPA amort. YoY (9.0) (25.0) (11.4) (9.1) (34.1) 66.4% Cua Lo Unit : MB Q1'22 (A) Q1'23 (A) -66.8% YoY (1.8) (2.9) (1.8) (2.9) -66.8% 19
Slide 18: Profit and Loss Statement – Q1'23 vs Q1'22
IV. Financial Performance Profit and Loss Statement – Q1'23 vs Q1'22 Normalized Net Profit (NNP) Q1’23 (A) Vs Q1’22 (A), +159.5 MB or +229.8% + Positive • Higher Normalized Share of Profit (+166.0 MB) : mainly from Gheco-One (+78.3 MB), SPPs (+61.7 MB), Vietnam utilities business (+19.7 MB) and Sola
Slide 19: Capital Structure and Financial Ratio
IV. IV. Financial Performance Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 31 Mar 2023 Unit : THB mm Unit : THB mm Average cost of debt of 2.86% 3,050 3,120 27,645 27,645 27,719 27,719 1,000 13,500 13,400 1,750 1,524 1,502 1,
Slide 20: Business Update
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 20
Slide 21: Utilities & Power Business – Our Plan & Beyond 2023
V. Business Update Utilities & Power Business – Our Plan & Beyond 2023 UTILITIES BUSINESS POWER BUSINESS Grow with Industrial Estate Development Enlarge Domestic Portfolio with (Both Central utilities and Value-added Products) Focusing on Clean Energy e.g., Solar & Wind Farm, Waste-to-Energy Power O
Slide 22: Utilities Business – Projects update
V. Business Update Utilities Business – Projects update Continue to Grow along with WHA Industrial Provide Extensive Value-added Utility Products Estates to Customers Stared constructing new water treatment Signed 2 Premium Clarified Water and wastewater treatment facilities at contracts with leadin
Slide 23: Power Business – FiT Bidding Results
V. Business Update Power Business – FiT Bidding Results Our 5 Solar farm projects with total installed capacity of 125 MW equity were awarded by ERC on 5 April 2023. SCOD in year 2029 - 2030. No. Type Location Installed Capacity (MW equity) 1. SPP + ESS Ubon Ratchathani 40.0 2. VSPP Ubon Ratchathani
Slide 24: Power Business – Enlarging Renewables Portfolio
V. Business Update Power Business – Enlarging Renewables Portfolio Selected Projects Signed in Q1’23 Cumulative Signed Renewable Energy PPA 300 MW 2023(F) Winthai Food Capacity 3.7 MW 152 MW Q1’23(A) 136 MW 95 MW 2022(A) 2021(A) Wisewoods Capacity 2.1 MW 10 New Solar Private PPA signed in Q1’23 with
Slide 25: Enlarging Renewables Portfolio (Cont'd)
V. Business Update Power Business – Enlarging Renewables Portfolio (Cont’d) Selected Projects Commissioning in 2023 Mega Bangna DSG international DKSH Samut Prakan Saraburi Samut Prakan Capacity 9.9 MW Capacity 4.0 MW Capacity 1.0 MW COD Q2’23 COD Q2’23 COD Q2’23 94 MW Ford Motor Vinythai WHA ESIE 1
Slide 26: Q&A
Q&A 26
Slide 27: IR Contact
IR CONTACT WHA Utilities and Power Public Company Limited Finance and Investor Relations Department 777 WHA TOWER, 22nd Floor, Unit 2203-2205, Moo 13, Debaratna Road (Bangna-Trad) KM.7, Bang Kaeo, Bang Phli, Samut Prakarn 10540 Email: ir@wha-up.com Website: www.wha-up.com 27
Slide 28: Appendix
III Operating Performance IV Financial Performance V Business Update VI Appendix > Company Information > Company Performance > Sustainability Development Your Ultimate Solution Partner in Utilities & Power with Environmental Care 28
Slide 29: Vision and Mission
VI. Appendix: Company Information “To be Asia's leader in Utilities and Power providing total solutions to VISION partners with good corporate governance as well as environmentally and socially friendly operations” • To develop world class utilities and power solutions fitting customer's needs • To
Slide 30: Utilities Business At A Glance
VI. Appendix: Company Information 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
Slide 31: Utilities Business – Assets Location
VI. Appendix : Company Information 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 11 operating IEs located in Thailand and 1 IE (WHA Industri
Slide 32: Shareholders and Management Structure
VI. Appendix : Company Information Shareholders and Management Structure Shareholding Structure Board of Directors Ms. Jareeporn Jarukornsakul Mr. Weidt Nuchjalearn Foreign Institutions Retail 20% Chairman of Board of Directors Independent Director and Chairman of Audit Committee 1.5% Domestic WHA 1
Slide 33: Utilities Business – Strong Customer Base
VI. Appendix: Company Information Utilities Business – Strong Customer Base WHAUP’s has established the strong operation in 89% of WHAUP’s volume are distributed to heavy EEC area. industry. Q1’23 Volume by IEs Q1’23 Volume by Industry Petrochemical Others 41% 6% Consumer 9% WHA SIL 5% 13% ESIE 5% W
Slide 34: Financial Highlight Q4'22 vs Q1'23
VI. Appendix: Company Performance Financial Highlight Q4’22 vs Q1’23 Q4’22 Q1’23 YTD Remarks Unit: THB mm 1. Total Revenue, NSOP and 654.3 813.3 24% Dividend Income 1.1 Total Revenue 659.0 639.7 -3% - Growth in domestic utilities sales volume due to increased - Utilities Business 495.5 522.5 5% sale
Slide 35: Vietnam Utilities Business - SDWTP Sales Volume
VI. Appendix: Company Performance Vietnam Utilities Business - SDWTP Sales Volume ( Based on 34% Shareholding) YoY/QoQ +16% -14% Unit: Million M3 22.0 18.9 16.3 Q1’23 70% Utilization Rate Q1'22 Q1'23 Q4'22 ▪ 16% YoY volume increase in Q1’23 is mainly due to recovery of water consumption from easing
Slide 36: Utilities Business – Domestic Revenue and Gross Profit Margin
VI. Appendix : Company Performance Utilities Business – Domestic Revenue and Gross Profit Margin Total Revenue from Domestic Utilities Business increased by 2.0% YoY Total Revenue Gross Profit Margin Unit : THB mm +2.0% 512.5 522.5 48.6% 1.7 37.7 41.2 44.9% 45.8% 48.5 42.5% 40.3 39.6 44.8% 44.9% 42.
Slide 37: Balance Sheet – as of 31 March 2023
VI. Appendix : Company Performance Balance Sheet – as of 31 March 2023 Total Assets Liabilities and Equity Unit : MB Unit : MB 124 148 27,645 (122) 196 27,719 27,645 (199) 27,719 Cash = 522 Cash = 721 TL =14,902 Investment Investment = 14,445 TL = 15,024 = 14,321 Others Others TE = 12,817 TE = 12,62
Slide 38: Historical Dividend Payment
VI. Appendix : Company Performance Historical Dividend Payment THB / Share 0.30 0.2525 0.2525 0.2525 0.25 0.2034 0.2115 0.20 0.16 0.16 0.16 0.1600 0.15 0.2115 0.1000 0.10 0.2034 0.05 0.0925 0.0925 0.0925 0.0600 0.00 2017 2018 2019 2020 2021 2022 Interim Dividend Additional Dividend 3 March 2023 38
Slide 39: 2023 Target
VI. Appendix : Company Performance 2023 Target UTILITIES BUSINESS Q1’23 (A) 2023 Target 35 168 Total Water Supply and Wastewater Management Volume Million m3 Million m3 28 135 Thailand’s Total Water Supply and Wastewater Management Volume Million m3 Million m3 7 33 Vietnam’s Total Water Supply and W
Slide 40: 5Y Financial Target (2023 – 2027)
VI. Appendix : Company Performance 5Y Financial Target (2023 – 2027) Total 5Y Revenue, Normalized share of profit and dividend Total 5Y CAPEX % EBITDA Margin income during 2023-2027 during 2023-2027 *Total Revenue, Normalized share of profit and dividend income in Q1’2023 = 813 MB 3 March 2023 40
Slide 41: Sustainability Highlight
VI. Appendix : Sustainability Development Sustainability Highlight Wastewater Management Projects Solar Rooftop Projects CSR Projects WHAUP has provided Wastewater treatment services to manufacturers Offers an all-in solar rooftop service package WHAUP has social responsibility strategy and and oper
Slide 42: Sustainability Highlight (Cont'd)
VI. Appendix : Sustainability Development Sustainability Highlight (Cont’d) WHAUP supports WHA Group to Achieving Net Zero Greenhouse Gas Emissions by 2050 WHAUP Achieved Carbon Neutrality since 2021 WHAUP provides solar power, with private PPA scheme, creating 31,599 Avoided CO2 Emission offsetting
Slide 43: Framework and Strategy: Sustainability at WHAUP
VI. Appendix : Sustainability Development Framework and Strategy Sustainability at WHAUP WHAUP has adopted WHA Group’s sustainability strategy and corporate long-term targets that contribute and provide support in driving WHA Group to achieve its business ambition to stay ahead and becoming “Your Ul
Slide 44: Materiality Assessment on Sustainability
VI. Appendix : Sustainability Development Materiality Assessment on Sustainability Materiality Issues EnvironmentDimension Environment Dimension • Water Management • Waste Management • Climate Change • Energy Management • Air Emission • Biodiversity Social Social Dimension Dimension • Human Capital
Slide 45: Sustainability Highlight: Environment Dimension
VI. Appendix : Sustainability Development Sustainability Development Highlight Environment Dimension Climate Change and Water Management Water Reclamation projects Climate Change and Solar Target WHAUP , in alight with WHA Group, has committed to long-term target to provide solar power and has signe
Slide 46: Environment Dimension: Waste Management
VI. Appendix : Sustainability Development Sustainability Development Highlight Environment Dimension Waste Management Chonburi Clean Energy (CCE) Plastic Waste Reduction Sludge to Fertilizer Reduce more than 20,000 bottles of plastic waste by stop serving plastic bottled drinking water to its guests
Slide 47: Social Dimension: Clean Water for Planet Roadmap
VI. Appendix : Sustainability Development Sustainability Development Highlight Social Dimension CLEAN WATER FOR PLANET Roadmap 2000-2019 2026 - onwards 2020 2024-2026 2021-2023 Clean Water For Planet To create brand Continuous Pilot Project To Pluakdaeng awareness of Community for City Water Treatme
Slide 48: Social Dimension
VI. Appendix : Sustainability Development Sustainability Development Highlight Social Dimension PAN GAN project ‘5 YEARS’ DIRECTIONS FOR HUMAN RESOURCE MANAGEMENT WHAUP sets out a 5-year strategic direction for human resource management, starting from 2022 to 2026. The strategy is implemented to re-
Slide 49: Governance and Economic Dimension: Digital Transformation
VI. Appendix : Sustainability Development Sustainability Development Highlight Governance and Economic Dimension Digital Transformation WHAUP implemented a Digital Transformation Project Aimed to change the work processes within the organization by applying information technology (more efficient and
Slide 50: Innovation Project: Demineralized Water
VI. Appendix : Sustainability Development Sustainability Development Highlight Governance and Economic Dimension Innovation Project : Demineralized Water Innovation Highlight ✓ Sustainable Water Resource Management Large-scale Project ✓ Sustainable Raw Water Sourcing Maximum Capacity Minimized risk
Slide 51: Smart Utilities & Power + WHAUP Intelligence Platform
VI. Appendix : Sustainability Development Sustainability Development Highlight Governance and Economic Dimension SMART Utilities & Power + WHAUP intelligence Platform SCADA System Smart Metering Unified Operation Center (UOC) for Remote Monitoring Enhance the Traceability of Utilities Provided Help
Slide 52: Governance and Economic Dimension: Risk Management
VI. Appendix : Sustainability Development Sustainability Development Highlight Governance and Economic Dimension Risk Management Code of Business Conduct 100% of employees at 100% of employees all levels are trained on have been risk management by communicated on the 2022 Code of Conduct Data Securi
Slide 53: Listed in THSI SET Sustainability Index
VI. Appendix : Sustainability Development Listed in ‘THSI’ SET Sustainability Index WHAUP has been listed in 2022 Thailand Sustainability Investment (THSI) ENVIRONMENTAL Index or selected as one of the ‘Sustainable Stock’, for 3 consecutive years. This reflects the company’s potential to grow a sust
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