WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q2 2020 Earnings Presentation
48 slides from WHA Utilities and Power Public's earnings presentation, Aug 21, 2020
Slide 1: Opportunity Day 2Q'20 Results
Opportunity Day 2Q’20 Results 21 August 2020 Your Ultimate Solution Partner in Utilities & Power with Environmental Care
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. 2020 Direction vi. Appendix 3
Slide 4: Vision & Mission
I. Company Profile Vision & Mission VISION 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 MISSION • To develop world class utilities and power solutions fitti
Slide 5: WHAUP is the Flagship Company in Utilities and Power 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 2.4 million sqm the industrial estates with Data Center developer a
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 6M’20 VOLUME by IEs Others 36% 12% Consumer 6% 9% WHA 6M’20 ESIE 1 14% VOLUME ESIE Steel by 6% 9% INDU
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 Targeted 100 MW solar rooftop by 2022; 6.7% As of 2Q2020, 44.1 MW already secured CAGR and 17.5 MW under operation. ~592 570 MW 559
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 Highly reliable off-taker (EGAT) Long-maturity Portfolio By Type of Power Plant By Type of Sourcing Industrial 52% Users, 12% Portfolio Analysis IPP Coal 43% SPP 48% Gas 53% Matu
Slide 12: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2020 Direction vi. Appendix 12
Slide 13: Executive Summary
II. Executive Summary Executive Summary NNI 2Q’20 reported at 177.7 MB, down 74% YoY. The soft performance in 2Q’20 was mainly due to the decrease of normalized share of profit from GHECO-One which account for 68% of total decrease of NNI in 2Q’20 UTILITIES BUSINESS POWER BUSINESS Continue to be eff
Slide 14: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2020 Direction vi. Appendix 14
Slide 15: Utilities – Operating Performance
III. Operating Performance Utilities – Operating Performance Utilities Portfolio Growth – Sale & Management Volume 57 27 28 Vietnam +4,300% YoY 54 Vietnam +8,100% YoY 8.2 4.4 0.1 New 0.1 New DW DW 0.8 Contributor Contributor 18 9 0.4 16 7 WWT -16% YoY 9 WWT -12% YoY 4 54 8 49 27 4 23 RW -5% YoY RW -
Slide 16: Power Business - IPP Group
III. Operating Performance Power Business - IPP Group Key Highlights 2Q’20 GHECO-One HHPC • 99.4% Availability Rate with zero unplanned outage • Lower dispatch by 28.2% YoY • Lower dispatch by 0.6% YoY • Rainfall in 2Q’20 is lower than expected GIPP • Continue to stay on reserved shutdown mode • Ful
Slide 17: Power Business - IPP Group (Cont'd)
III. Operating Performance Power Business - IPP Group (Cont’d) Key Highlights 6M’20 GHECO-One HHPC • 97.6% Availability Rate with 3 days forced outage • Lower dispatch by 23.3% YoY • Higher dispatch by 26.8% YoY due to planned maintenance in 1Q’20 • Rainfall in 1H’20 is 429 mm which is the lowest si
Slide 18: Power Business - SPP Group
III. Operating Performance Power Business - SPP Group Key Highlights 2Q’20 GNLL, GVTP, and GTS 2-4 • EGAT dispatch was higher around 16% YoY as a result of EGAT maintenance of transmission line in 2Q’19 • IU power demand was lower by around 31% YoY GTS 1 • 18 days Planned maintenance during 15/05/20
Slide 19: Power Business - SPP Group (Cont'd)
III. Operating Performance Power Business - SPP Group (Cont’d) Quarterly EGAT GWh Energy Dispatch IU +3.6% 1,535 1,590 210 216 218 206 203 207 197 -25.8% 193 193 195 193 196 178 182 299 171 50 403 49 167 45 25 34 29 29 58 62 57 50 57 44 44 37 31 +14.0% 1,291 168 168 167 165 163 163 162 149 1,132 145
Slide 20: Power Business - SPP Group (Cont'd)
III. Operating Performance Power Business - SPP Group (Cont’d) Key Highlights 6M’20 GNLL • EGAT dispatch is higher around 7% • IU power demand is lower by around 5% GVTP • Planned maintenance (17 days) performed during Feb 20. • Lower EGAT and IU dispatch YoY as a result of planned maintenance GTS 1
Slide 21: Power Business - SPP Group (Cont'd)
III. Operating Performance Power Business - SPP Group (Cont’d) YTD EGAT GWh Energy Dispatch IU 3,246 -3.9% 3,119 429 420 419 434 432 419 395 390 384 403 380 367 379 379 380 808 -11.6% 356 714 117 110 110 124 115 114 89 85 86 67 69 106 85 94 94 58 2,438 -1.3% 2,405 291 310 312 281 310 285 309 285 303
Slide 22: Power Business - Solar Performance
III. Operating Performance Power Business - Solar Performance Energy Dispatch – Total Quarterly YTD MWh. MWh. +169.1% 9,153.2 +205.8% 5,531.1 6,660.8 4,282.0 3,401.8 1,808.8 793.9 414.7 -1.4% -5.8% 2,282.8 2,250.8 1,224.4 1,153.0 169.7 -43.3% 96.1 325.1 -25.7% 241.6 2Q'19 2Q'20 6M'19 6M'20 Gulf Sola
Slide 23: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2020 Direction vi. Appendix 23
Slide 24: Financial Highlight 2Q'20
IV. Financial Performance Financial Highlight 2Q’20 Unit : THB mm 2Q’19 2Q’20 YoY Remarks Total Revenue 475.1 403.9 -15.0% - Lower Utilities Sales Volume mainly from drought - Utilities Business 473.6 390.2 -17.6% mitigation plan by the government 33.3 MB - Lower Excessive Charge by 50.7 MB - Revenu
Slide 25: Financial Highlight 6M'20
IV. Financial Performance Financial Highlight 6M’20 Unit : THB mm 6M’19 6M’20 YoY Remarks Total Revenue 934.5 834.2 -10.7% - Lower Utilities Sales Volume mainly from drought - Utilities Business 931.6 813.6 -12.7% mitigation plan by the government 49.5 MB - Lower Excessive Charge by 69.9 MB - Revenu
Slide 26: Revenue and Normalized Share of Profit and Dividend Income
IV. Financial Performance Revenue and Normalized Share of Profit and Dividend Income Revenue and Normalized Share of Profit and Dividend Income was recorded at Baht 607.0 million in 2Q’20 Utilities = Utilities Operating Revenue + Other Utilities Revenue + Share of Profit (Utilities) Power = Solar Pr
Slide 27: Revenue and Normalized Share of Profit and Dividend Income (Cont'd)
IV. Financial Performance Revenue and Normalized Share of Profit and Dividend Income (Cont’d) Revenue and Normalized Share of Profit and Dividend Income was recorded at Baht 1,258.7 million in 6M’20 Utilities = Utilities Operating Revenue + Other Utilities Revenue + Share of Profit (Utilities) Power
Slide 28: 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 17.6% and 12.7% for 2Q’20 and 6M’20, respectively. However, Total Revenue from Utilities Business excluding Other Revenue decreased by 7.9% and 5.8%, respectivel
Slide 29: Utilities Business – Share of Profit from Vietnam
IV. Financial Performance Utilities Business – Share of Profit from Vietnam Business Share of Profit Quarterly YTD Unit : MB Unit : MB 94.3 Cua Lo Cua Lo SDWTP SDWTP 47.1 0.6 0.9 - - 0.5 1.8 (0.2) (29.1) (37.6) (66.7) 2Q’19 (A) 2Q'19 1Q’20 1Q'20 (A) 2Q’20 2Q'20 (A) 2Q'20 (B) 6M'19 6M’19(A) 6M'20 (A)
Slide 30: Power Business – Key Headlines
IV. Financial Performance Power Business – Key Headlines 2Q’20 IPP Business: GHECO-One • APR1 drop from previous year • Lower quarterly Availability Payment in 2Q’20 compared to 2Q’19 due to non-major maintenance year in 2020 • Unfavorable FX impact QoQ on Availability Payment due to appreciation of
Slide 31: Power Business – Key Headlines (Cont'd)
IV. Financial Performance Power Business – Key Headlines (Cont'd) 6M’20 IPP Business: GHECO-One • APR1 drop from previous year • Lower quarterly Availability Payment in 6M’20 compared to 6M’19 due to non-major maintenance year in 2020 • Lower Energy Margin from unfavorable coal price • Started tax r
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 2Q’20 and 6M’20 increased 61.3% and 39.1%, respectively. /1 Normalized Share of Profit and Dividend Income Share of Profit and Dividend Income by Power Plant
Slide 33: Power Business - GHECO-One
IV. Financial Performance 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 wit
Slide 34: Power Business - GHECO-One (Cont'd)
IV. Financial Performance Power Business - GHECO-One (Cont’d) Cash flow to Shareholders • Lower AP is substantially offset by lower debt services 1 2 3 4 5 Revenue6vs. Debt Services AP 7 8 9 10 11 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 AP Revenue (FX = 33.64) Debt Service (Principal + Int
Slide 35: Consolidated Performance
IV. Financial Performance Consolidated Performance Consolidated EBITDA/1 and EBITDA Margin Consolidated Net Profit and Net Profit Margin/4 Unit : THB mm Unit : THB mm 79% 75% 67% 61% 76% 53% 68% 51% 62% 52% 46% 51% 36% 1,281.8 27% 24% 59.8 1,566.2 26% 59.8 256.9 256.9 857.5 1,006.3 162.3 162.3 708.9
Slide 36: Profit and Loss Statement – 2Q'20 vs 2Q'19
IV. Financial Performance Profit and Loss Statement – 2Q'20 vs 2Q'19 Normalized Net Income (NNI) 2Q’20 (A) Vs 2Q’19 (A), -517.5 MB or -74.4% + Positive Lower Tax : mainly due to lower Earning Before Tax (EBT) - Negative Lower Gross Profit before Depreciation: mostly due to lower Excessive Charge
Slide 37: Profit and Loss Statement – 6M'20 vs 6M'19
IV. Financial Performance Profit and Loss Statement – 6M'20 vs 6M'19 Normalized Net Income (NNI) 6M’20 (A) Vs 6M’19 (A), -568.3 MB or -58.9% + Positive Lower Tax : mainly due to lower Earning Before Tax (EBT) - Negative Lower Gross Profit before depreciation : mostly due to lower Excessive Charg
Slide 38: Capital Structure and Financial Ratio
IV. Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 2Q’2020 Unit : THB mm Unit : THB mm 3,718 125 26,419 26,419 25,942 25,942 2,640 11,757 250 12,584 1,750 1,540 1,103 3,593 250 1,320 1,500 1,524 250 2,390 13,559 11,835 1,500 1,
Slide 39: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2020 Direction vi. Appendix 39
Slide 40: Water Situation in Rayong as of August 2020
VI. Appendix Water Situation in Rayong as of 15 August 2020 Nogplalai, Dokkrai, and Klongyai Reservoirs 15 Aug 2020 196.3m 69.3% Water Level of Main Reservoirs in Rayong 15 August 2020 15 August 2019 24 April 2020 73% 57% 24% 73% 68% 56% 57% 68% 36% 30% 38% 24% 14% 12% 9% 11% Nongplalai Dokkrai Klon
Slide 41: WHA Utilities and Power – 2020 Plan: Growing Beyond the Core
V. 2020 Direction WHA Utilities and Power – 2020 Plan Growing Beyond the Core Continuously Expand Launch Innovative Product and Solutions Utilities Business in New RECLAMATION WHA IE DEMINERALIZED WATER AND PREMIUM PRODUCT SEAWATER DESALINATION (WHA RY36, WHA IER and WHA MUNICIPAL WASTEWATER TREATME
Slide 42: 2020 Plan: Accelerating our Expansion in Vietnam
V. 2020 Direction WHA Utilities and Power – 2020 Plan (Cont’d) Accelerating our Expansion in Vietnam Cua Lo Duong River Surface Water Plant 4.8 Million m3/year Hanoi Water Treatment and Distribution WHAUP acquired 34% First Move towards Partnership +3.7 Million m3/year Non-Industrial with Aqua One S
Slide 43: 2020 Plan: Enlarging Power Portfolio
V. 2020 Direction WHA Utilities and Power – 2020 Plan (Cont’d) Enlarging Power Portfolio Chonburi Clean Energy PARTNERSHIP Industrial Waste to Energy 2.9 MWeq +33 Equity Megawatt COD Date: 7 Nov 19 in 2020 with 11 MWeq already COD in 1H’20 Conventional Power Plants Solar Rooftops All-in solar roofto
Slide 44: 2020 Plan: Specializing in Solar for Industrial Users
V. 2020 Direction WHA Utilities and Power – 2020 Plan (Cont’d) Specializing in Solar for Industrial Users MG Solar Carpark Project “Thailand’s Largest Solar Carpark Project” JJR Chicken Farm Nikkei Siam Aluminium Danieli Far East Nakhon Nayok Pathum Thani ESIE, Rayong Capacity 1.0 MW Capacity 1.0 MW
Slide 45: 2020 Plan: Introducing Innovative Energy Solutions
V. 2020 Direction WHA Utilities and Power – 2020 Plan (Cont’d) Introducing Innovative Energy Solutions WHAUP collaborates with PEA in studying P2P Energy Trading and Smart Microgrid in WHA Industrial Estates P2P Energy Trading Smart Microgrid Renewable Power Co-generation Power Prosumer Industrial U
Slide 46: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2020 Direction vi. Appendix 46
Slide 47: Shareholders and Management Structure
VI. Appendix Shareholders and Management Structure Shareholding Structure Board of Directors Foreign Institutions 1% Mr. David Richard Nardone Retail Ms. Jareeporn Jarukornsakul 14% Chairman of Board of Directors Director Domestic Institutions 12% WHA Group Mr. Vivat Jiratikarnsakul Dr. Niphon Bunde
Slide 48: Power
Power
WHA Utilities and Power Public Company — Q2 2020 Earnings Presentation on 6ix