WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q2 2022 Earnings Presentation
54 slides from WHA Utilities and Power Public's earnings presentation, Sep 13, 2022
Slide 1: Q2/22 Opportunity Day
Q2/2022 Q1/2022 Q2/22 Opportunity Day WHA Utilities and Power Public Company Limited 13Partner Your Ultimate Solution Sep in2022 Utilities & Power with Environmental Care
Slide 2: Agenda
Agenda 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 2
Slide 3: Vision and Mission
I. Company Overview 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 needs • To vertic
Slide 4: WHAUP is the Flagship Company in Utilities & Power of WHA Group
I. Company Overview WHAUP is the Flagship Company in Utilities & Power Business of WHA Group ▪ #1 Industrial Estate Developer ▪ To be one-stop ▪ #1 Logistics developers, ▪ Exclusive utilities provider with more than 2.55 million ▪ 12 Industrial Estates in Thailand’s in the industrial estates service
Slide 5: 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 international power companies
Slide 6: 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 7: 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 11 operating IEs located in Thailand and 1 IE (WHA Industrial Zone 1, Nghe
Slide 8: Utilities Business – Strong Customer Base
I. Company Overview Utilities Business – Strong Customer Base WHAUP’s has established the strong operation in 82% of WHAUP’s volume are distributed to heavy EEC area. industry. 6M’22 Volume by IEs 6M’22 Volume by Industry Petrochemical Others 40% 12% Consumer 7% WHA SIL 6% 12% ESIE 5% WHA CIE 1 Stee
Slide 9: Power Business – Portfolio Breakdown
I. Company Overview Power Business – Portfolio Breakdown Total Capacity (676 eq MW) : 612 eq MW under Operation + 64 eq MW under development By Type By Off-taker Analysis 3% 0.4% Portfolio Analysis Gas (44%, 297 eq MW) EGAT/ PEA/ MEA 19% Coal (34%, 231 eq MW) 30% Industrial Users Total Portfolio Tot
Slide 10: Listed in THSI SET Sustainability Index
I. Company Overview 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 sustainable business with
Slide 11: Agenda
Agenda 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 11
Slide 12: Key Highlights
II. Executive Summary Key Highlights Unit : MB % change % change Q2’21 Q1’22 Q2’22 6M’21 6M’22 YoY QoQ YoY Revenue, Normalized Share of Profit and Dividend 1) 789.0 608.0 836.6 6% 38% 1,571.1 1,444.6 -8% Income 1.1 Revenue 552.6 575.4 616.0 11% 7.1% 1,163.5 1,191.4 2% - Utilities Business/1 488.9 51
Slide 13: Agenda
Agenda 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 13
Slide 14: Utilities Business - Total Sales and Management Volume
III. Operating Performance Utilities Business - Total Sales and Management Volume* Quarterly - YoY/QoQ YTD YTD Unit : Million M3 Unit : Million M3 +12% +12% +10% 75.1 67.3 39.4 12.8 35.2 35.7 10.5 7.0 19.4 5.8 5.8 18.1 9.9 2.5 9.3 9.5 2.1 62.2 1.3 56.8 1.0 32.4 1.2 29.9 Domestic 26.2 Domestic 29.3 1
Slide 15: Power Business – IPP Group
III. Operating Performance Power Business – IPP Group Q2’22 vs Q2’21 GHECO-One • 14-days maintenance performed in Q2’22 vs 20-day maintenance in Q2’21 GIPP • EGAT dispatched GIPP of 32 GWh in Q2’22 (vs 236 GWh in Q2’21) • Stable Availability factor at 99.8% in Q2’22 HHPC • +4% higher dispatch than Q
Slide 16: Power Business – IPP Group
III. Operating Performance Power Business – IPP Group Quarterly Unit GWh Q2’21 (A) Q2’21 (A) Energy Dispatch Q2’22 (A) Availability Q2’22 (A) Q1’22 (A) Q1’22 (A) +9% +12% 99.8% 99.8% 98.7% 83.7% 1,213 76.5% 75.6% 1,113 1,085 +4% +31% -86% -66% 236 133 138 106 93 32 Gheco-One HHPC Glow IPP Gheco-One
Slide 17: Power Business – SPP Group
III. Operating Performance Power Business – SPP Group Q2’22 vs Q2’21 • Total dispatch decreased -4.0% YoY mainly due to -5.6% lower EGAT dispatch despite +0.9% slightly higher IU dispatch • GTS4 performed maintenance 58 days. 6M’22 vs 6M’21 • Total dispatch slightly decreased -0.2% YoY due to -0.5%
Slide 18: Power Business – SPP Group
III. Operating Performance Power Business – SPP Group Quarterly Q2’21 (A) Q2’21 (A) Unit: GWh Q2’22 (A) Q2’22 (A) Energy Dispatch Q1’22 (A) Availability Q1’22 (A) -6% +0.2% -4% +0.5% 99.2% 95.0% 99.7% 1,739 1,670 1,622 1,311 1,238 1,236 +1% +1% 428 432 432 EGAT 1 IU 2 Total 1 + 2 Total SPP Business
Slide 19: Power Business - Solar Energy Dispatch
III. Operating Performance Power Business - Solar Energy Dispatch Power Dispatch : Solar energy dispatch continued to increase in accordance with capacity under operation (46.2 MW as of Q2’21 vs 61.6 MW as of Q2’22) Quarterly YTD +32% Unit : GWh Unit : GWh 36.2 +28% +7% 1.4 18.7 27.5 17.5 0.7 1.6 0.
Slide 20: Agenda
Agenda 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 20
Slide 21: Financial Highlight Q2’22 vs Q2’21
IV. Financial Performance Financial Highlight Q2’22 vs Q2’21 Q2’21 Q2’22 YoY Remarks Unit: THB mm 1. Total Revenue, NSOP and 780.0 827.8 6% Dividend Income 1.1 Total Revenue 543.6 607.2 12% - Growth in domestic utilities sales volume mainly due to the sales volume growth in all product categories -
Slide 22: Financial Highlight Q2’22 vs Q1’22
IV. Financial Performance Financial Highlight Q2’22 vs Q1’22 Q1’22 Q2’22 QoQ Remarks Unit: THB mm 1. Total Revenue, NSOP and 608.0 827.8 36% Dividend Income 1.1 Total Revenue 564.4 607.2 8% - Growing domestics water sales and management - Utilities Business 512.5 555.9 9% volume for all products in
Slide 23: Financial Highlight 6M’22 vs 6M’21
IV. Financial Performance Financial Highlight 6M’22 vs 6M’21 6M’21 6M’22 YTD Remarks Unit: THB mm 1. Total Revenue, NSOP and 1,554.8 1,424.8 -8% Dividend Income 1.1 Total Revenue 1,147.3 1,171.6 2% - Growth in domestic utilities sales volume mainly due to higher demand from existing customers in pow
Slide 24: Power Business – Normalized Share of Profit and Dividend Payment
IV. Financial Performance /1 Power Business – Normalized Share of Profit and Dividend Payment /1 Power Business : Normalized Share of Profit and Dividend income increased by 260% QoQ but decreased by 10.3% YoY and 35.0% YoY in Q2’22 and 6M’22 respectively. Normalized Share of Profit and Dividend Inc
Slide 25: Utilities Business: Share of Profit (Vietnam)
IV. Financial Performance Utilities Business : Share of Profit (Vietnam) Utilities Business : Share of loss from SDWTP and Cua Lo in Q2’22 improved by 13.9% YoY and 81.6% YoY and for 6M’22 increased by 8.1% YoY, 76.5% YoY, respectively. Unit : MB Cua Lo Unit : MB SDWTP Quarterly Quarterly Q2'21 (A)
Slide 26: Capital Structure and Financial Ratio
IV. Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 30 June 2022 Unit : THB mm Unit : THB mm 3,790 Average cost of debt of 2.76% 3,500 3,120 29,120 29,120 25,839 25,839 14,899 2,000 12,101 1,800 3,790 1,500 1,354 1,527 1,300 1,0
Slide 27: Key Financial Update
IV. Financial Performance Key Financial Update Debt Profile as of Q2’22 Financial Policy* Net IBD/E Ratio under loan/bond Bank loan 14% covenant ≤ 2.5x THB 2,000 MB Weighted Average Interest Rate Bonds 2.76% 86% THB 11,900 MB 0.90x 0.93x 2021 Q2'22 Net IBD/E Ratio New Bonds No.2/2022 Historical Divi
Slide 28: Agenda
Agenda 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 28
Slide 29: Utilities Business – Projects in Pipeline
V. Business Update Utilities Business – Projects in Pipeline Providing Premium Clarified Water to Increasing Conventional Water Sales Gulf SPP Volume in WHA Industrial Estates Expects to start water distribution in Q3’22 Sale Volume in 2022 Capacity + 12.6 mm3/yr 1.4 mm3/yr Perspective design Partne
Slide 30: Power Business – Enlarging Renewables Portfolio
V. Business Update Power Business – Enlarging Renewables Portfolio Selected Projects Signed in Q2’22 Cumulative Target Signed PPA 300 MW 2023(F) 150 MW 2022(F) 125 MW Q2’22(A) 92 MW 51 MW 2021(A) 2020(A) Ford Motor Capacity 7.7 MW 3 New EPC Service projects signed inQ2’22 10 New PPA projects signed
Slide 31: Power Business – Enlarging Renewables Portfolio (Cont’d)
V. Business Update Power Business – Enlarging Renewables Portfolio (Cont’d) Selected projects commissioning in 2022 SAIC Phase 2 Prinx Chengshan ESIE (Chonburi) ESIE 3 BorgWarner Capacity 1.8 MW Capacity 19.4 MW ESIE COD : Q1’22 COD : Q3’22 Capacity 0.7 MW COD : Q2’22 2 Projects commissioned in Q2’2
Slide 32: Power Business – Smart Energy Solutions
V. Business Update Power Business – Smart Energy Solutions Innovative Energy Solution for Increased Opportunities and Efficiency P2P Energy Trading 2-sided 100% • Launch ‘RENEX’ platform auction Market Update Block Chain Scheme Clearance • In preparation for commercialization Example of RENEX Dashbo
Slide 33: Q&A
Q&A 13 Sep 2022 33
Slide 34: 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 13 Sep 2022 34
Slide 35: Agenda
Agenda 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 35
Slide 36: Shareholders and Management Structure
VI. Appendix : Company Overview Shareholders and Management Structure Shareholding Structure Board of Directors Retail Ms. Jareeporn Jarukornsakul Mr. Weidt Nuchjalearn Foreign 19% Chairman of Board of Directors Independent Director and Institutions Chairman of Audit Committee 2% Domestic 1/ Institu
Slide 37: Vietnam Utilities Business - SDWTP Sales Volume
VI. Appendix : Company Performance Vietnam Utilities Business - SDWTP Sales Volume (100%)/1 YoY/QoQ YTD Unit : Million M3 Unit : Million M3 +20% +12% +22% 7.0 12.8 5.8 5.8 10.5 Q2'21 Q2'22 Q1'22 6M'21 6M'22 ▪ 20% YoY volume increase in Q2’22 is mainly explained by more consumption of water supply du
Slide 38: 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 13.7% YoY for Q2’22. Total Revenue Gross Profit Margin Unit : THB mm +13.7% 555.9 23.6 488.9 41.0 1.9 47.9% 31.2 42.5 44.9% 45.3% 39.7 42.5% 12
Slide 39: 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 0.15 0.10 0.2034 0.2115 0.05 0.0925 0.0925 0.0925 0.00 2017 2018 2019 2020 2021 Interim Dividend Additional Dividend 13 Sep 2022 39
Slide 40: 2022 Operating Target
VI. Appendix : Company Performance 2022 Operating Target Introducing Innovation Utilities And Smart Solutions Business Power Business Water Sales and Management Volume Secured Power Purchase Agreement 700 676 Equity MW Equity MW 153 /1 75 million m3 million m3 6M’2022 2022F 6M’2022 2022F To be Asia'
Slide 41: Profit and Loss Statement – Q2'22 vs Q2'21
VI. Appendix : Company Performance Profit and Loss Statement – Q2'22 (A) vs Q2'21 (A) Normalized Net Profit (NNP) Q2’22 (A) Vs Q2’21 (A), -3.8 MB or -1.4% + Positive • Higher Gross Profit before Depreciation (+42.6 MB): due to Utilities business (+32.5) and Solar business (+10.1 MB) • Lower Financia
Slide 42: Profit and Loss Statement – Q2'22 vs Q1'22
VI. Appendix : Company Performance Profit and Loss Statement – Q2'22 (A) vs Q1'22 (A) Normalized Net Profit (NNP) Q2’22 (A) Vs Q1’22 (A), 194.4 MB or +280.3% + Positive • Higher Normalized Share of Profit (+213.0 MB): mainly from Gheco-One (+180.5 MB) and SPPs (+12.6 MB) • Higher Gross Profit before
Slide 43: Profit and Loss Statement – 6M'22 vs 6M'21
VI. Appendix : Company Performance Profit and Loss Statement – 6M'22 (A) vs 6M’21 (A) Normalized Net Profit (NNP) 6M’22 (A) Vs 6M’21 (A), -124.0 MB or -27.1% + Positive • Higher Gross Profit before Depreciation (+40.2 MB): mostly due to better Gross Profit before Depreciation from Utilities Business
Slide 44: Balance Sheet – as of 30 June 2022
VI. Appendix : Company Performance Balance Sheet – as of 30 June 2022 Total Assets Liabilities and Equity Unit : MB Unit : MB Net IBD/Equity: Actual = 0.93x Covenant = 2.50x 2,134 556 591 29,120 2,971 310 29,120 25,839 Cash = 3,039 25,839 Cash = 905 Investment TL =16,426 Investment TL = 13,455 = 13,
Slide 45: 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 46: 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 47: Sustainability Development 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 48: Sustainability Development Highlight – Environment Dimension
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 49: Sustainability Development Highlight – Social Dimension
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 50: Sustainability Development Highlight – 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 51: Sustainability Development Highlight – Governance and Economic Dimension
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 52: 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 53: 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 54: Risk Management and Code of Business Conduct
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
WHA Utilities and Power Public Company — Q2 2022 Earnings Presentation on 6ix