TPI Polene Power Public Co., Ltd. · SET:TPIPP
TPI Polene Power Public — Q1 2017 Earnings Presentation
35 slides from TPI Polene Power Public's earnings presentation, May 15, 2017
Slide 1: TPI Polene Power Public Company Limited Opportunity Day
TPI Polene Power Public Company Limited Opportunity Day 15 May 2017 Strictly Private & Confidential
Slide 2: TPI Polene Power Public Company Limited Opportunity Day
TPI Polene Power Public Company Limited Opportunity Day 15 May 2017 Strictly Private & Confidential
Slide 3: Table of Content
Table of Content Section 1. Introduction 2. Company & Business Overview 3. Key Investment Highlights 4. Business Strategies 5. Financial Highlights 6. Progress Update Appendices A. Industry Overview B. Operations Summary C. WTE Process Flow D. TPIPP’s PPA and Tariff Structure E. Environmental & HSE
Slide 4: Introduction
Introduction Strictly Private & Confidential 3
Slide 5: Key Management Executives - TPIPP
Key Management Executives - TPIPP Mr. Pakorn Leopairut Mr. Pakkapol Leopairut Mr.Worawit Lerdbussarakam President Executive Vice President Vice President • More than 10 years of industrial • Head of TPIPP’s accounting and • More than 28 years of experience in experience with specialization in financ
Slide 6: Company & Business Overview
Company & Business Overview Strictly Private & Confidential 5
Slide 7: TPIPP at a Glance
TPIPP at a Glance TPIPP is the largest operator of waste-to-energy (“WTE”) power plants in Thailand in terms of installed power generation capacity Key Business Segments % of Q1 2017 Total Sales Revenue Operates refuse derived fuel (“RDF”) fired & waste-heat recovery power plants with off-take arr
Slide 8: Summary of TPIPP's Power Plant Operations
Summary of TPIPP’s Power Plant Operations TPIPP’s Power Plants (Operational & Under Construction) TPIPP’s Installed Capacity Breakdown by Fuel MW Waste Heat RDF(3) Coal/RDF Coal Total capacity in operation 150 MW 440 Total capacity under construction 290 MW 150 Grand total capacity 440 MW 70 Install
Slide 9: Summary of TPIPP's Petrol & Gas Station Operations
Summary of TPIPP’s Petrol & Gas Station Operations TPIPP primarily sells petrol and gas to retail customers under the “TPIPL” brand The Company was granted the license to use the trademark of TPIPL in accordance with a 10-year trademark licensing agreement dated March 7, 2016 between the Company
Slide 10: Mutually Beneficial Support Framework with TPIPL
Mutually Beneficial Support Framework with TPIPL Complementary Sale & Purchase Relationship with TPIPL Supports Continuing Development of Both Companies Backing and Continuing Support from Recognized Shareholder, TPIPL One of the leading cement manufacturers in the country TPIPL General Public fou
Slide 11: Key Milestones
Key Milestones 2016 Entered into 2014 - 2015 WHPP-30MW PPA with TPIPL Entered in to 2009 - 2013 and COD of RDFPP-20MW WHPP-30MW COD of WHPP- PPA with EGAT Started 2007 40 MW Received expansion of Expanded the acceptance Expanded into RDF production installed letter from 1996 petrol sta
Slide 12: Key Investment Highlights
Key Investment Highlights Strictly Private & Confidential 11
Slide 13: Summary of Key Investment Highlights
Summary of Key Investment Highlights 1 Thailand’s Largest WTE Power Plant Operator 2 Expertise in Waste Management & WTE Renewable Technologies 3 Strong Relationships with Key Players in the Upstream & Downstream Industry Value Chain Supportive Government Policies for Renewable Energy (“RE”) Power G
Slide 14: Thailand's Largest WTE Power Plant Operator
1 Thailand’s Largest WTE Power Plant Operator Thailand’s Dominant WTE Player by Installed Capacity with Significant Future Capacity Growth in Progress Largest Installed WTE Renewable Power Generation Capacity(1) Significant Expansion Underway (MW) Installed Capacity (MW) Market Share (Installed Capa
Slide 15: Thailand's Largest WTE Power Plant Operator
1 Thailand’s Largest WTE Power Plant Operator TPIPP’s Annual Installed Capacity 2009 2015 2016 2017F 60 MW 40 MW 70 MW 260 MW Power Plants TG1 20 MW TG1 20 MW TG1 20 MW TG1 20 MW with Note (1) Electricity TG2 20 MW TG2 20 MW TG2 20 MW TG2 20 MW Sales to TPIPL TG3 20 MW TG4 30 MW TG7 70 MW(2) TG8 150
Slide 16: Expertise in Waste management & WTE Renewable Technologies
2 Expertise in Waste management & WTE Renewable Technologies TPIPP has developed its proprietary technologies to process landfill waste and Municipal Solid Waste (“MSW”) into RDF which allows it to maintain its competitive advantages Key R&D Initiatives Driving Competitive Advantages Continuous Impr
Slide 17: Strong Relationships with Key Players in the Upstream & Downstream Industry Value Chain
3 Strong Relationships with Key Players in the Upstream & Downstream Industry Value Chain Extensive network of waste suppliers provides TPIPP with a steady supply of waste for the operation of its WTE power plants while good relationship with EGAT creates revenue visibility Extensive Network of Supp
Slide 18: Supportive Government Policies for Renewable Energy Power Generation in Thailand
4 Supportive Government Policies for Renewable Energy (“RE”) Power Generation in Thailand Thai government’s policies to promote power generation from renewable fuel sources remain favorable, which provides significant growth opportunities for TPIPP Growing WTE Capacity under SPP and VSPP (January 20
Slide 19: Positive Macroeconomic Outlook with Strong GDP Growth & Increasing Power Demand
5 Positive Macroeconomic Outlook with Strong GDP Growth & Increasing Power Demand in Thailand High Growth Potential in Electricity Consumption in Thailand Underpinned by a Steadily Growing GDP Outlook Electricity Consumption per Capita (MWh/year) 8.7 3.5 2.5 1.3 0.7 0.7 Singapore China Thailand Viet
Slide 20: Experienced Management Supported by Dedicated Operating & Technical Staff
6 Experienced Management Supported by Dedicated Operating & Technical Staff Experienced management team with solid track record Management Committee Mr. Prachai Leophairatana Chairman Dr. Pramuan Leophairatana Vice Chairman Mrs. Orapin Leophairatana Vice Chairman Majority of the management com
Slide 21: Business Strategies
Business Strategies Strictly Private & Confidential 20
Slide 22: Business Strategies
Business Strategies 1 • Continuously explores the development of new technologies and processes to To achieve and maintain optimal optimize operational efficiency efficiency in power plant operations through ongoing R&D initiatives • Emphasis on continuous improvement and innovation of technological
Slide 23: Financial Highlights
Financial Highlights Strictly Private & Confidential 22
Slide 24: Revenue
Revenue Diversified Revenue Streams Led by Growing Revenues from Energy & Utilities Division Total Revenue from Sales of Goods (THBmm) Revenue from Energy & Utilities (THBmm) 3,509.6 8.4 519.2 4,368.2 77.3 1,692.1 781.3 43.4 466.0 2,982.0 930.1 960.5 985.2 0.0 6.6 145.7 116.6 108.3 0.0 1,182.7 864.5
Slide 25: Cost of Sales & Gross Profit
Cost of Sales & Gross Profit High Gross Profit Margins in 2016 and Q1 2017 Underpinned by Power Sales to EGAT Q1 2017 Cost of Sales Breakdown (THBmm) Gross Profit (THBmm) and Gross Profit Margin(1) (%) Energy & Utilities: Raw Materials & 48.1% Fuel 39% Labor 38.2% 2,103.2 18% 102.6 Maintenance Other
Slide 26: Cost & Expenses vs. EBITDA & NPAT
Cost & Expenses vs. EBITDA & NPAT Cost & Expenses Items (THBmm) EBITDA(1) (THBmm) and EBITDA margin(2) (%) Loss due to TPIPP’s disposal of equity interest in all non 65.0% 70.5% energy related 2,616.0 2000 businesses 53.6% 45.5% 45.0% 60.0% 2,407.4 160.4 1800 40.0% 49.0 125.6 1600 2,341.5 20.0% 65.0
Slide 27: Comparing Profit and Loss Statement – QoQ and YoY
Comparing Profit and Loss Statement – QoQ and YoY 2016 2016 2017 Compare (MB) Compare (%) Q1 Q4 Q1 YoY QoQ YoY QoQ Income Revenue from base tariff 498.46 478.23 476.67 (21.79) (1.56) -4.37% -0.33% Revenue from power adder 425.11 482.25 496.10 70.99 13.85 +16.70% +2.87% Other Revenues 220.52 265.46 1
Slide 28: Operating Statistic
Operating Statistic Strictly Private & Confidential 27
Slide 29: Debt Profile and Leverage Ratios
Debt Profile and Leverage Ratios Interest Bearing Liabilities (THBmm) Cash and Cash Equivalents (THBmm) Increase in long-term loans from financial institution and related parties 7,054.2 7,829.2 2,496.6 1,635.0 285.9 113.7 2015 2016 Q1 2017 2015 2016 Q1 2017 Net Debt(1) to Equity (x) Interest Covera
Slide 30: Capital Expenditure
Capital Expenditure To Fund Growth Opportunities Historical Capital Expenditure (THBmm) 5,382.2 2,980.8 1,642.9 2015 2016 Q1 2017 CAPEX from 2015 to 2016 principally related to power plant construction TPIPP expects to meet CAPEX requirements through cash in hand, cash from operations and/or fin
Slide 31: Progress Update
Progress Update Strictly Private & Confidential 30
Slide 32: Historical and Planned EIA/EHIA Report Submission Process
Historical and Planned EIA/EHIA Report Submission Process Historical EIA Report Submission Process TG Type 1st Submit 1st Meeting 2nd Submit 2nd Meeting Approved Date TG 1-2 EIA 28-Jan-09 26-Mar-09 - - 26-Mar-09 TG 3 EIA 7-Jul-10 26-Aug-10 15-Nov-10 9 Dec 10 9-Dec-10 TG 4 EIA 16-Nov-12 4-Feb-13 11-M
Slide 33: Power Plant's Update Expansion Construction Progress
Power Plant’s Update Expansion Construction Progress Type Update Construction Progress • Submission of Ror Ngor.3 in application for Ror Ngor. 4 (permit for factory operation) TG 1-2 Boiler B9 • In process of commissioning test, ready to produce steam to turbine • Submission of Ror Ngor.3 in applica
Slide 34: Conclusion
Conclusion Strictly Private & Confidential 33
Slide 35: Conclusion
Conclusion Key Attributes of TPIPP 1 Thailand’s Largest Waste-to-Energy (“WTE”) Power Plant Operator 2 Expertise in Waste Management & WTE Renewable Technologies 3 Strong Relationships with Key Players in the Upstream & Downstream Industry Value Chain Supportive Government Policies for Renewable Ene
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