Ratch Group Public Co. Ltd. · SET:RATCH
Ratch Group Public — Ratchaburi Electricity Generating Holding PCL — DB Access Thailand Corporate Day 2010
42 slides from Ratch Group Public's conference presentation, Jul 13, 2010
Slide 1: Ratchaburi Electricity Generating Holding PCL
Ratchaburi Electricity Generating Holdingg PCL. DB Access Thailand Corporate Day 12-13 July 2010
Slide 2: Table of Contents
Table of Contents o RATCH Overview o RATCH Highlights o RATCH Growth Strategies Appendix
Slide 3: RATCH Overview
RATCH Overview
Slide 4: Company History
Company History • In February 1999 the Thai Cabinet approved private participation on the EGAT Ratchaburi power plant with generating capacity of 3,645 MW, the g largest single g power p plant p in Thailand. • The private participation plan involves the creation of the Ratchaburi Electricity Generat
Slide 5: Company History: Price History
Company History Price History y Bht RATCH Daily Closing Market Cap. = Share Million x Closing Price (Bht) = 1,450 x 36.50 = 52,925 Mil Bht As at July 8, 2010 5
Slide 6: Company Structure
Company Structure Ratchaburi Electricity Generating Holding PCL. 100 % 100% 100 % 33.33 % 100% 50 % 100% 10% 100% 3,645 MW. RATCH-LAO Services RH International Ratchaburi Electricity Generating Co., Ltd SouthEast Asia Energy Ratchaburi Energy Co., Ltd Corporation Limited Co., Ltd Thermal & Combined
Slide 7: Shareholders as at March 2, 2010
As at March 2, 2010 NORTRUST NOMINEES BANPU LIMITED 7.52% 7 52% 14.99% Social Security Office 4.93% Government Savings Bank Fund 1.94% EGAT 45.00% AMERICAN INTERNATIONAL ASSURANCE COMPANY 1.71% BBL ASSET MANAGEMENT COMPANY LIMITED 1.12% General Public 20.72% BANGKOK LIFE ASSURANCE PCL 0.97% THAI NVD
Slide 8: Total Installed Capacity: 30,324.01 MW
Total Installed Capacity: 30,324.01 MW. RATCH’s Installed Capacity consisted of RG = 3,645 MW TECO = 350 MW RPCL = 350 MW 14,328.12 ((47.25%)) 4,345 , 4,345 MW (14.33%) 7,970.59 (26.28%) 2,092.30 1,588.00 (6 90%) (6.90%) (5 24%) (5.24%) EGAT RATCH Other 8 IPPs SPPs Foreign 1. Electricity Generating
Slide 9: RATCH Highlights
RATCH Highlights
Slide 10: RATCH Highlights: Capital Structure
RATCH Highlights Capital Structure as at March 31, 2010 Strong Balance Sheet Debt b Equity • Total Shareholders’ Equity 44,314 MB 37.27% 62.73% • Total Debt 26,330 MB >> TOTAL CAPITAL 70,644 MB D/E = 0.59 times 10
Slide 11: RATCH Highlights: Capacity Growth
RATCH Highlights Hydro Nam Bak 40 MW MW. Xe Pian = 97.5 MW NN3 = 110 MW Lignite-Fired (Mine Mouth) Combined Cycle Wind Turbine Generator Hongsa Combined Cycle RPCL 751.20 MW Wind Wi d farm f TECO 350 MW 18 MW Combined Cycle 350 MW RG Hydro 2,175 MW Gas Engine NN2 Gas Engine Pratu Tao 153.75 MW 2017
Slide 12: Stable dividends payment
Stable dividends payment – RATCH has a dividend policy of no less than 40% of Net Profit 2.20 2.25 Baht per Share (% of Net Profit) 2.10 2.10 (48.41%) (49.13%) 2 40 2.40 2.00 2 00 2.00 2 00 14%) (52.24%) (51.14%) (51 (52 24%) (47.06%) (50.32%) 1.75 2.00 (49.24%) 1.50 (48 42%) (48.42%) 1 10 1.10 1 15
Slide 13: RATCH Growth Strategy
RATCH Growth Strategy
Slide 14: RATCH Growth Strategies
RATCH Growth Strategies • Aiming to invest in renewable energy and biomass projects. • Seeking investment opportunities abroad including Vietnam, Indonesia, Australia and the Philippines etc. • Well prepared for the next bidding round since RATCH has in place at least 2 sites ready to accommodate th
Slide 15: Appendix
Appendix
Slide 16: Income statement summary
Unit : in Million Baht Q1/2010 2009 2008 2007 2006 R Revenues 10 360 54 10,360.54 37 653 83 37,653.83 43 801 84 43,801.84 46 072 34 46,072.34 51 848 22 51,848.22 Expenses 8,543.38 29,222.19 35,798.22 38,781.36 44,223.34 EBIT 1,817.16 8,431.64 8,003.62 7,290.98 7,624.88 Interest Expense 169.48 861.10
Slide 17: Balance sheet summary
Unit : in Million Baht Q1/2010 Q / 2009 2008 2007 2006 Asset C Current tAAssett 20 942 20,942 19 196 19,196 19 520 19,520 21 071 21,071 21 923 21,923 Property, plant & equipments 37,091 37,762 40,383 42,876 45,233 Invest in Joint Ventures 9,467 9,494 7,362 5,676 3 986 3,986 Others Assets 3,144 2,890
Slide 18: Debt of RATCHGEN, TECO and RPCL
As at March 2010 Unit : in Million Baht Unit : in Million USD RATCHGEN TECO Q1/2010 19,022.77 Q1/2010 75.18 2009 19,756.85 2009 91.73 2008 22,989.16 2008 122.11 2007 26,604.40 2007 135.93 2006 29,743.14 2006 163.57 2005 32,585.89 RPCL 2004 35,764.51 Million USD Million Baht Maturity Year Q1/2010 414
Slide 19: IPP capacity contribution
RATCH’s Capacity contribution Project MW Location Plant type COD holding to RATCH 1. Ratchaburi Power Plant 3,645 Ratchaburi Thermal & 99.99% TH : 2000 3,645 MW Province Combined Cycle CCGT : 2001 (Thailand) 2. Tri Energy Power Plant 700 Ratchaburi Combined Cycle 50% 2000 350 MW Province (Thailand)
Slide 20: Projects under construction
Project MW Location Plant type RATCH’s Status Expected Capacity contribution g holding ((%)) COD to RATCH 1. Nam Ngum 2 Project 615 Lao PDR Hydro 25% 96.83 Jan 2013 153.75 MW (May 2010) 2 Pratu 2. P t Tao-A T A (E (Expansion) i ) 0 975 0.975 Sukhothai S kh th i A Associated i t d Gas G 100% 70 00 70
Slide 21: Projects in Thailand
In Thailand Capacity RATCH’s Status Expected Project MW Location Plant type contribution holding (%) COD to RATCH 1. Khao Kor Wind Farm 60 Phetchabun Wind 30% • Negotiating PPA 2011 18 MW Province • Preparing RFP for lenders • Turbine Supply and Balance of Plant Agreement signed on 18 March 2010 Tot
Slide 22: Projects in Lao PDR
In Lao PDR Capacity RATCH’s Status Expected Project MW Location Plant type contribution holding (%) COD to RATCH 1. Hongsa Thermal Project 1,878 Lao PDR Lignite-Fired 40% • PPA , CA & EPC 2015 751.2 MW signed 2. Nam Ngum 3 Project 440 Lao PDR Hydro 25% • Tariff MOU signed 2017 110 MW • Negotiating P
Slide 23: Ratchaburi Power Plant (RG)
Projects in Operation Ratchaburi Power Plant (RG) Project Summary Shareholders’ Structure Location : Ratchaburi Province T h l Technology : Thermal Th l & Combined C bi d C Cycle l RATCH Total Capacity : 3,645 MW. Contributed capacity 3,645 MW. (100%) to RATCH: 100% PPA : 25 Years (Remaining:15 Year
Slide 24: Tri Energy Power Plant (TECO)
Projects in Operation Tri Energy Power Plant (TECO) Project Summary Shareholders’ Structure Location : Ratchaburi Province Technology : Combined Cycle RATCH Total Capacity : 700 MW. Contributed capacity 350 MW. (50%) 100% to RATCH: PPA : 20 Years (Remaining:10 Years) Chevron Thailand RGAS Energy Com
Slide 25: Ratchaburi Power Plant (RPCL)
Projects in Operation Ratchaburi Power Plant (RPCL) Project Summary Shareholders’ Structure Location : Ratchaburi Province Technology : Combined Cycle RATCH Total Capacity : 1,400 MW. 100% Contributed capacity 350 MW. (25%) to RATCH: Ratch Udom Power 25% PPA : 25 Years (Remaining: 23Year) HK Electri
Slide 26: Pratu Tao-A
Projects in Operation Pratu Tao-A Project Summary Shareholders’ Structure Location : Sukhothai Province in Thailand RATCH Technology : Gas Engine 100% Total Capacity : 1.75 MW. Ratchaburi Contributed capacity to RATCH: 1.75 MW. (100%) Energy PPA : 5 Years (Automatic Renewal) 100% COD : June 2007 Pra
Slide 27: Nam Ngum 2 Project
Num Ngum 2 Project Projects Summary Project Progress • RATCH-Lao Service Co., Ltd has signed O&M Agreement with Location : Lao PDR Num Ngum 2 Power co., Ltd on June 25, 2009 Technology : Hydro Power Plant • Construction C t ti completed l t d off 97.2% 97 2% as att J June 2010 Total Capacity : 615 M
Slide 28: Pratu Tao-A (Expansion)
Pratu Tao-A (Expansion) Project Summary Shareholders’ Structure Location : Sukhothai Province in Thailand Technology : Gas Engine RATCH Total Capacity : 1.75 MW. 100% Contributed capacity to RATCH: 1.75 MW. (100%) Ratchaburi PPA : 5 Years (Automatic Renewal) Energy COD : June 2007 100% Investment Am
Slide 29: Khao Kor Wind Farm Project
Khao Kor Wind Farm Project Project Summary Project Progress • MOU signed on December 3, 2008 Location : Phetchabun Province in Thailand • Share Purchase Agreement g & Shareholder Agreement g signed g on February 18, 2009 Technology : Wind Turbine Generator • RATCH has purchased another 4 % stake in
Slide 30: Hongsa Thermal Project
Hongsa Thermal Project Projects Summary Project Progress • Signed the Shareholder Agreement on February 5, 2009 for the Location : Lao PDR establishment of Hongsa Power Co., Ltd. and Phu Fai Mining to operate Hongsa Power Plant Project Technology : Lignite-Fired Lignite Fired Power Plant • Signed Ta
Slide 31: Nam Ngum 3 Project
Num Ngum 3 Project Projects Summary Project Progress Location : Lao PDR • Shareholder Agreement signed with GMS Lao Co.,Ltd., Marubeni Corporation and Lao Holding State Enterprise Technology : Hydro Power Plant on May y 13, 2008 • Signed Tariff MOU with EGAT on March 11, 2010 Total Capacity : 440 MW
Slide 32: Xe Pian - Xe Namnoy Project
Xe Pian - Xe Namnoy Project Projects Summary Project Progress Lao PDR • Joint Development Agreement signed with SK Engineering & Location : Construction and Korean Western Power on August 6, 2007 T h l Technology : H d P Hydro Power Pl Plantt • Project Development Agreement signed with the governmen
Slide 33: Nam Bak Project
Nam Bak Project Projects Summary Project Progress • Tariff proposal sent to EGAT Location : Lao PDR Technology : Hydro Power Plant Total Capacity : 160 MW. Contributed capacity to RATCH: 40 MW. (25%) PPA : n.a. IOD : n.a. COD : In 2017 Project Cost : n.a. Debt to Equity q y: 70:30 times Lender : n.a
Slide 34: Dispatch and availability factors by unit
Q1/2010 2009 2008 2007 2006 DF. EAF DF. EAF DF. EAF DF. EAF DF. EAF ((%)) ((%)) ((%)) ((%)) ((%)) ((%)) ((%)) ((%)) ((%)) ((%)) TP#1 44.65 85.98 48.82 86.03 51.36 99.41 62.05 80.99 75.79 90.34 TP#2 7.96 100.00 52.33 87.38 52.12 90.40 64.18 81.83 76.10 98.52 CCGT #1 72 33 72.33 98 52 98.52 76 69 76.6
Slide 35: Net generation by fuel
Q1/2010 2009 2008 2007 2006 Total Net Generation (GWh) 3,799.47 12,324.21 16,468.39 19,841.64 23,585.21 N tG Net Generation ti (TP#1-2) (TP#1 2) (GWh) 728 12 728.12 1 787 77 1,787.77 3 465 10 3,465.10 6 329 18 6,329.18 9 166 72 9,166.72 - By Gas 557.41 1,631.84 3,094.53 5,789.47 8,688.97 - By Oil 17
Slide 36: Fuel consumption and prices
Q1/2009 2009 2008 2007 2006 Fuel Consumption (TH#1-2) - Gas Million MMBTU 5 71 5.71 16 45 16.45 31 34 31.34 56 53 56.53 83 16 83.16 - Heavy Oil Million Liters 39.85 38.18 92.07 131.89 115.59 Fuel Consumption (CCGT#1-3) - Gas Million MMBTU 21.90 76.02 93.94 96.70 102.36 - Diesel Million Liters 4.96 0
Slide 37: Thai electricity industry structure
VSPPs Generation VSPPs EGAT IPPs SPPs Imported DEDE Minis Re stry of En Transmission Transmission System (EGAT) egulato nergy or Distribution MEA PEA Customer Direct Customer Customer EGAT : Electricity Generating Authority of Thailand Source: EPPO PEA : Provincial Electricity Authority MEA : Metrop
Slide 38: PDP 2010: Electricity Capacity by Type of fuel
PDP 2010 : Electricity Capacity by Type of fuel MW. 7% 7% 7% 7% 8% 18% 18% 8% 8% 18% 8% 8% 17% 18% 7% 16% 17% 7% 7% 15% 6% 7% 15% 6% 15% 5% 5% 14% 13% 10% 11% 12% 5% 6% 8% 4% 6% 42% 4% 43% 43% 2% 7% 44% 5% 7% 45% 45% 47% 49% 51% 51% 54% 57% 68% 65% 64% 66% 67% 64% 63% 61% 60% 15% 17% 15% 11% 13% 13%
Slide 39: Power Purchase Agreement (PPA)
Power Purchase Agreement (PPA) • Thermal Units and Combined Cycle RATCHGEN: PPA Tariff Structure Units have separate 25 year PPAs. • Tariff is designed to cover all operating and financing costs and Fixed O&M FX/ Inflation Costs Adjustments yield IRR of 19%. • Revenues are from Availability Availabi
Slide 40: Peak Generation
Peak Generation Year Increase (Decrease ) MW. MW. % 2010 24,010 1,965 8.91 2009 22 045 22,045 (523) (2 32) (2.32) 2008 22,568 (18) (0.08) 2007 22,586 1,522 7.23 2006 21 064 21,064 526 2 56 2.56 2005 20,538 1,212 6.27 o In 2009, the highest peak generation was 22,045 MW on April -2.32% decrease yoy.
Slide 41: Energy Generation
Energy Generation Year Increase (Decrease ) MW. MW. % 2010 (1st Half) 80,942 12,174 17.70 2009 (1st Half) 68,768 2009 143,456 (4,980) (3.35) 2008 148,436 1,552 1.06 2007 146,884 4,797 3.38 2006 142,088 7,234 5.36 2005 134,854 7,364 5.78 o In 2009, average monthly energy generation growth was -3.35%
Slide 42: = WN years
o% 19 = WN 2 years ~\Y * “a Be 'rature
Ratchaburi Electricity Generating Holding PCL — DB Access Thailand Corporate Day 2010 on 6ix