WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q1 2020 Earnings Presentation
40 slides from WHA Utilities and Power Public's earnings presentation, May 18, 2020
Slide 1: Analyst Meeting No.2/2020
Analyst Meeting No.2/2020 18 May 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 Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 3
Slide 4: Vision & Mission
I. Company Profile 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 n
Slide 5: WHAUP is the Flagship Company in Utilities and Power Business of WHA Group
I. Company Profile 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 2.3 million sqm the industrial estates with Data Center developer an
Slide 6: Business Overview
I. Company Profile Business Overview Utilities Business Power Business Sole provider of utilities to manufacturers/ factories in leading Active power investor with strategic partnership with leading Thai industrial estates with a concrete plan to capture increasing and international power companies
Slide 7: Agenda
Agenda i. Company Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 7
Slide 8: Utilities Business Overview
II. Utilities Business Utilities Business Overview 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 9: Assets Location
II. 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) in the future. 6
Slide 10: Our Utilities Customer Base
II. 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 2019 VOLUME by IEs Others 37% 12% Consumer 5% 9% 2019 VOLUME 15% Steel by 5% 9% INDUSTRY 4% 55% 10% WHA CIE2 Automotive
Slide 11: Agenda
Agenda i. Company Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 11
Slide 12: Growing Portfolio
III. Power Business Growing Portfolio Continuing Growth from Projects Under Construction and Committed Projects in Pipeline Targeted 100 MW solar rooftop by 2022; 6.7% As of 1Q2020, 36.9 MW already secured. CAGR ~590 569 MW 559 MW MW 521 MW 486 MW 2017 2018 2019 1Q’20 2020 F 12
Slide 13: Well-balanced and High Stability Portfolio
III. 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% Maturity ≥ 20 Hydro 4
Slide 14: Agenda
Agenda i. Company Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 14
Slide 15: Executive Summary
IV. Operating Performance Executive Summary Solid core operating profit due to strong performance of power business for the first quarter 2020 amid negative factors on Utilities business UTILITIES BUSINESS POWER BUSINESS get affected by both drought continued to show strong situation (Thailand) and
Slide 16: Utilities – Operating Performance
IV. Operating Performance Utilities – Operating Performance Utilities Portfolio Growth – Sale & Management Volume Million m3/ year 120 105 110 New 100 Vietnam 3 Contributor 100 82 0.2 35 35 New 80 34 DW 30 4 Contributor 25 17 27 60 17 17 0.4 32 34 13 9 WWT -7% YoY 40 8 55 4 4 RW +1% YoY 43 49 53 20
Slide 17: Power Business - IPP Group (Quarterly - YoY)
IV. Operating Performance Power Business - IPP Group (Quarterly - YoY) 1Q’19 1Q’19 Energy Dispatch 1Q’20 Availability 1Q’20 GWh 1,369 % AF 95.9% 100.0% 100.0% 767 50.3% 120 101 0 0 Gheco-One HHPC Glow IPP Gheco-One Glow IPP Key Highlights GHECO-One • Availability at 95.9% for 1Q20, with 3 days force
Slide 18: Power Business - SPP Group (Quarterly - YoY)
IV. Operating Performance Power Business - SPP Group (Quarterly - YoY) Key Highlights 1Q’20 SPP Business: All companies recorded FX loss from THB weakening affecting USD loan GNLL and GNLL2 • EGAT dispatch is lower around 8% as a result of maintenance of transmission line by EGAT (16-25/Mar/2020) •
Slide 19: Power Business - SPP Group (Quarterly - YoY)
IV. Operating Performance Power Business - SPP Group (Quarterly - YoY) Quarterly - YoY EGAT GWh Energy Dispatch IU 1,699 -8.3% 222 226 222 1,559 217 208 212 207 216 203 203 198 192 189 184 184 394 +5.5% 174 62 415 57 59 53 48 42 66 45 57 28 56 48 42 36 55 56 -12.4% 1,306 165 165 165 165 164 163 161
Slide 20: Agenda
Agenda i. Company Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 20
Slide 21: Financial Highlight 1Q'20
V. Financial Information Financial Highlight 1Q’20 Unit : THB mm 1Q’20 YoY Remarks Total Revenue 430.3 -6.3% - Lower Utilities Sales Volume mainly from drought mitigation - Utilities Business 423.3 -7.6% plan by the government - Lower Excessive Charge by 19.2 MB - Revenue from Solar Rooftop projects
Slide 22: Consolidated Financial Statement
V. Financial Information Consolidated Financial Statement Total Revenue and Normalized Share of Profit and Dividend Income was recorded at Baht 651.7 million in 1Q’20 Utilities = Utilities Operating Revenue + Other Utilities Revenue + Share of Profit (Utilities) Power = Solar Project Revenue + Norma
Slide 23: Utilities Performance
V. Financial Information Utilities Performance Total Revenue from Utilities Business was decreased 7.6% for 1Q’20 Total Revenue - Utilities Business Gross Profit Margin - Utilities Business Units: THB mm Units: % 458.0 47.9% 45.3% 423.3 44.0% 26.8 8.4 2% 44.2% 38.7 13.6 3% 37.3 9% 44.5% 45.2% 64.9 4
Slide 24: Power Performance
V. Financial Information Power Performance Normalized Share of Profit and Dividend Income for 1Q’20 increased 35.6% /1 Normalized Share of Profit and Dividend Income Share of Profit and Dividend Income by Power Plant Units: THB mm Units: THB mm 250.7 339.2 12.9 94.6 1.5 184.8 59.8 1.2 250.7 139.4 18
Slide 25: Consolidated Performance
V. Financial Information Consolidated Performance Consolidated EBITDA/1 and EBITDA Margin Consolidated Net Profit and Net Profit Margin/4 Unit : THB mm Unit : THB mm 68% 61% 59% 52% 48% 37% 31% 8% 559.9 - 59.8 246.3 424.2 94.6 -56.0% 2.8 59.8 43.5 94.6 -89.8% 405.5 2.8 386.7 -4.6% 269.8 219.0 -18.8%
Slide 26: Profit and Loss Statement – 1Q'19 (A) Vs 1Q'20 (A)
V. Financial Information Profit and Loss Statement – 1Q'19 (A) Vs 1Q'20 (A) Normalized Net Income (NNI) 1Q’20 (A) Vs 1Q’19 (A), -50.8 MB or -18.8% + Positive Higher Normalized Share of Profit 36.6 MB: mainly due to higher contribution from Gheco-One and CCE despite loss contribution from SWDTP and
Slide 27: Capital Structure and Leverage Ratio
V. Financial Information Capital Structure and Leverage Ratio Statement of Financial Position Debt Maturity Profile Unit : THB mm Unit : THB mm 4,125 26,419 26,419 26,583 26,583 125 12,164 2,640 13,559 250 1,750 1,103 1,430 4,000 1,540 1,500 250 1,320 250 2,390 11,757 12,989 1,500 1,500 1,290 125 1,
Slide 28: Agenda
Agenda i. Company Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 28
Slide 29: 2020 Plan – Growing Beyond the Core
VI. 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 TREATM
Slide 30: 2020 Plan – Accelerating our Expansion in Vietnam
VI. 2020 Direction WHA Utilities and Power – 2020 Plan Accelerating our Expansion in Vietnam Cua Lo Duong River Surface Water Plant 330.0 4.8 Million m3/year Hanoi Million m3 /year Water Treatment and Distribution WHAUP acquired 34% First Move towards Partnership +3.7 Million m3/year Non-Industrial
Slide 31: 2020 Plan – Enlarging Power Portfolio
VI. 2020 Direction WHA Utilities and Power – 2020 Plan Enlarging Power Portfolio Chonburi Clean Energy PARTNERSHIP Industrial Waste to Energy 2.9 MWeq +31 Equity Megawatt COD Date: 7 Nov 19 in 2020 Conventional Power Plants Solar Rooftops All-in solar rooftop packages to Solar Monitoring System indu
Slide 32: 2020 Plan – Specializing in Solar for Industrial Users
VI. 2020 Direction WHA Utilities and Power – 2020 Plan 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 Capacit
Slide 33: 2020 Plan – Introducing Innovative Energy Solutions
VI. 2020 Direction WHA Utilities and Power – 2020 Plan 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 Users/ Pr
Slide 34: Agenda
Agenda i. Company Profile ii. Utilities Business iii. Power Business Agenda iv. Operating Performance v. Financial Information vi. 2020 Direction vii. Appendix 34
Slide 35: GHECO-One FX Exposure
VII. Appendix I GHECO-One FX Exposure Impact on Cash Flow Impact on Accounting CF FX (THB/USD) USD-LINKED 37 REVENUE 36 35.63 35 +2.00 GAIN 34 33.63 33 32.25 -2.00 Mar-20 LOSS 32 31.63 31 30.40 LOAN 30 Dec-19 -2 +2 FX (THB/USD) 29 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 31.63 33.63 35.63 2017 2018 2
Slide 36: SDWTP Performance – YTD Performance
VII. Appendix I SDWTP Performance – YTD Performance Average daily sales volume (100%) Avg. 100k cmd 19 Jan 19Feb 19Mar 19Apr 19May 19Jun 19Jul 19 Aug 19 Sep 19 Oct 19Nov 19 Dec 20 Jan 20Feb 20 Mar 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 • Lower SDWTP than expected due to the delay in the constr
Slide 37: Mitigation Plans in EEC Area
VII. Appendix I Mitigation Plans in EEC Area Chonburi Rayong Chantaburi 8 Increase water from Klong Luang Bangpakong to Bang pra (cap 117 MCM) reservoir 50 MCM 1 To transfer water from Dokkrai Nongplalai Klongyai Prasae Wang tanode to Rayong (cap 79 MCM) (cap 164 MCM) (cap 40 MCM) (cap 295 MCM) Bang
Slide 38: Mitigation Plans in EEC Area
VII. Appendix I Mitigation Plans in EEC Area On going mitigation projects from various departments No. Project Goal Responsible Party 1 To transfer water from Wang-Tanode, Chantaburi to Prasae reservoir 10 mil cu.m. RID and EW 2 To pump back spilled water from Klong Saphan to Prasae reservoir (raini
Slide 39: Shareholders and Management Structure
VII. Appendix II 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 B
Slide 40: Power
Power
WHA Utilities and Power Public Company — Q1 2020 Earnings Presentation on 6ix