WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q3 2022 Earnings Presentation
59 slides from WHA Utilities and Power Public's earnings presentation, Nov 18, 2022
Slide 1: Q3/2022 Analyst Meeting
Q3/2022 Analyst Meeting WHA Utilities and Power Public Company Limited 18 November 2022 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 IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 3
Slide 4: 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 5: Power Business – Portfolio Breakdown
I. Company Overview Power Business – Portfolio Breakdown Total Capacity (681 eq MW) : 619 eq MW under Operation + 62 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 6: 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 6
Slide 7: Key Highlights
II. Executive Summary Key Highlights Unit : MB % change % change Q3’21 Q2’22 Q3’22 9M’21 9M’22 YoY QoQ YoY Revenue, Normalized Share of Profit and Dividend 1) 761.4 836.6 691.1 -9% -17% 2,332.5 2,135.7 -8% Income 1.1 Revenue 524.5 616.0 629.1 20% 2% 1,688.1 1,820.5 8% - Utilities Business/1 481.3 55
Slide 8: 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 8
Slide 9: 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 +9% +4% -7% 111.7 102.3 39.4 20.7 35.1 36.6 16.4 7.0 28.5 5.9 7.9 27.5 9.9 3.3 3.9 9.4 9.1 85.9 91.0 28.7 1.3 32.4 Domestic 1.2 29.1 1.4 Domestic 38.3 Do
Slide 10: Power Business – IPP Group
III. Operating Performance Power Business – IPP Group Q3’22 vs Q3’21 GHECO-One • 18-days maintenance performed in Q3’22 vs 28-day maintenance in Q3’21 GIPP • EGAT dispatched GIPP of 244 GWh in Q3’22 (vs 44 GWh in Q3’21) • A slight decrease in Availability factor at 96% in Q3’22 (vs 98% Q3’21) HHPC •
Slide 11: Power Business – IPP Group
III. Operating Performance Power Business – IPP Group Quarterly Unit GWh Q3’21 (A) Q3’21 (A) Q3’22 (A) Availability Q3’22 (A) Energy Dispatch Q2’22 (A) Q2’22 (A) +13% -6% 98% 96% 100% 1,213 84% 1,138 77% 1,006 68% +7% -25% +460% +663% 244 97 104 138 44 32 Gheco-One HHPC Glow IPP Gheco-One Glow IPP Y
Slide 12: Power Business – SPP Group
III. Operating Performance Power Business – SPP Group SPP Business: Q3’22 vs Q3’21 • Total dispatch decreased -5.1% YoY mainly due to -6.7% lower EGAT dispatch while IU dispatch slightly decreased by -0.1% • GTS4 and GNLL performed maintenance in Q3’22 9M’22 vs 9M’21 • Total dispatch decreased -1.8%
Slide 13: Power Business – SPP Group
III. Operating Performance Power Business – SPP Group Quarterly Q3’21 (A) Q3’21 (A) Unit: GWh Q3’22 (A) Q3’22 (A) Energy Dispatch Q2’22 (A) Availability Q2’22 (A) -6.7% +0.9% -5.1% +0.0% 99.7% 93.3% 95.0% 1,761 1,670 1,670 1,339 1,249 1,238 -0.1% -2.5% 422 421 432 EGAT 1 IU 2 Total 1 + 2 Total SPP B
Slide 14: 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 (50.3 MW as of Q3’21 vs 68.6 MW as of Q3’22) Quarterly YTD +30% Unit : GWh Unit : GWh +26% -9% 53.2 1.9 18.7 41.0 17.0 0.7 2.3 0.
Slide 15: 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 15
Slide 16: Financial Highlight Q3’22 vs Q3’21
IV. Financial Performance Financial Highlight Q3’22 vs Q3’21 Q3’21 Q3’22 YoY Remarks Unit: THB mm Total Revenue, NSOP and 1. 761.4 691.1 -9% Dividend Income 1.1 Total Revenue 524.5 629.1 20% - Growth in domestic utilities revenue mainly due to - Utilities Business 481.3 547.5 14% higher Excessive Ch
Slide 17: Financial Highlight 9M’22 vs 9M’21
IV. Financial Performance Financial Highlight 9M’22 vs 9M’21 9M’21 9M’22 YTD Remarks Unit: THB mm Total Revenue, NSOP and 1. 2,332.5 2,135.7 -8% Dividend Income 1.1 Total Revenue 1,688.1 1,820.5 8% - Growth in domestic utilities sales volume mainly due to higher demand from existing customers in pow
Slide 18: IU Gas Spread of SPP Business
IV. Financial Performance IU Gas Spread of SPP Business IU Tariff vs Gas Cost (THB/kWh) 5.0 4.0 3.0 2.0 1.0 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Average IU tariff Gas cost Note : Ft in Sep – Dec 2022 = 93.43 Satang 18 18 November 2022
Slide 19: 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 decreased by 49.3% QoQ, 53.1% YoY in Q3’22 and 41.4% YoY in 9M’22. Normalized Share of Profit and Dividend Income -41.4% Unit: THB mm 751.4
Slide 20: Utilities Business : Share of Profit (Vietnam)
IV. Financial Performance Utilities Business : Share of Profit (Vietnam) Utilities Business : Share of loss from SDWTP increased by 120.5% YoY and for 9M’22 increased by 31.1% YoY. While Share of loss Cua Lo in Q3’22 improved by 19.2% YoY and for 9M’22 increased by 71.9% YoY. Unit : MB Cua Lo Unit :
Slide 21: Profit and Loss Statement – Q3'22 vs Q3'21
IV. Financial Performance Profit and Loss Statement – Q3'22 (A) vs Q3'21 (A) Normalized Net Profit (NNP) Q3’22 (A) Vs Q3’21 (A), -186.2 MB or -67.3% + Positive • Higher Gross Profit before Depreciation (+55.5 MB): due to Utilities business (+37.2 MB) and Solar business (+18.3 MB) - Negative • Lower
Slide 22: Profit and Loss Statement – 9M'22 vs 9M’21
IV. Financial Performance Profit and Loss Statement – 9M'22 (A) vs 9M’21 (A) Normalized Net Profit (NNP) 9M’22 (A) Vs 9M’21 (A), -310.2 MB or -42.3% + Positive • Higher Gross Profit before Depreciation (+95.8 MB): Utilities business (+67.1 MB) and Solar business (+28.7 MB) • Lower Loss from Revalue
Slide 23: Capital Structure and Financial Ratio
IV. Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 30 September 2022 Unit : THB mm Unit : THB mm 3,790 Average cost of debt of 2.74% 3,500 27,138 3,120 25,839 25,839 27,138 12,101 12,900 2,000 1,800 1,354 1,420 3,790 1,500 1,30
Slide 24: Financial Activities
IV. Financial Performance Financial Activities TRIS Rating affirms the A- company rating and This reflects WHAUP”s position as the ratings on the sole utilities service provider WHAUP’s senior for all WHA’s industrial estates in Thailand and neighboring unsecured countries and recurring income deben
Slide 25: 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 25
Slide 26: Utilities Business – Projects in Pipeline
V. Business Update Utilities Business – Projects in Pipeline Partnering with ASIA Industrial Estate Providing Premium Clarified Water to Gulf SPP Already started distributing Demineralized Water to Already started 1.3 million cubic meters per year of water the 1st customer on 1-Oct-22.Its first cont
Slide 27: Power Business – Enlarging Renewables Portfolio
V. Business Update Power Business – Enlarging Renewables Portfolio Selected Projects Signed in Q3’22 Cumulative Target Signed PPA Capacity of 2 MW 150 MW 2022(F) 131 MW Capacity of 2 MW 51 MW 92 MW 2021(A) Q3’22(A) 2020(A) 8 New PPA projects signed in Q3’22 with Industrial Users with a total capacit
Slide 28: Power Business – Enlarging Renewables Portfolio (Cont’d)
V. Business Update Power Business – Enlarging Renewables Portfolio (Cont’d) Selected projects commissioning in 2022 Prinx Chengshan T.H.C. Suminoe Narumi ESIE 3 Ayutthaya ESIE Capacity 19.4 MW Capacity 0.7 MW Capacity 1.1 MW COD : Q4’22 COD : Q3’22 COD : Q3’22 8 Projects commissioned in Q3’22 with a
Slide 29: Power Business – Smart Energy Solutions P2P Energy Trading
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 30: Awards and Recognition
V. Business Update Awards and Recognition WHAUP has been listed in THSI Index Best Innovative Company Awards or selected as one of the ‘Sustainable Stock’, for 3 consecutive years. This reflects the company’s potential to grow a sustainable business with good corporate governance, as well as to crea
Slide 31: Utilities & Power
Utilities & Power
Slide 32: 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 32
Slide 33: Agenda
Agenda III Operating Performance IV Financial Performance V Business Update Appendix VI > Company Information > Company Performance > Sustainability Development Your Ultimate Solution Partner in Utilities & Power with Environmental Care 33
Slide 34: Vision and Mission
VI. Appendix : Company Information 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 ne
Slide 35: Utilities Business At A Glance
VI. Appendix : Company Information 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
Slide 36: Utilities Business – Assets Location
VI. Appendix : Company Information 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 Industri
Slide 37: Shareholders and Management Structure
VI. Appendix : Company Information Shareholders and Management Structure Shareholding Structure Board of Directors Ms. Jareeporn Jarukornsakul Mr. Weidt Nuchjalearn Foreign Institutions Retail 20% Chairman of Board of Directors Independent Director and Chairman of Audit Committee 1.7% Domestic WHA 1
Slide 38: Utilities Business – Strong Customer Base
VI. Appendix : Company Information Utilities Business – Strong Customer Base WHAUP’s has established the strong operation in 85% of WHAUP’s volume are distributed to heavy EEC area. industry. 9M’22 Volume by IEs 9M’22 Volume by Industry Petrochemical Others 39% 10% Consumer 7% WHA SIL 5% 12% ESIE 5%
Slide 39: Financial Highlight Q3’22 vs Q2’22
VI. Appendix : Company Information Financial Highlight Q3’22 vs Q2’22 Q2’22 Q3’22 QoQ Remarks Unit: THB mm 1. Total Revenue, NSOP and 836.6 691.1 -17% Dividend Income 1.1 Total Revenue 616.0 629.1 2% - Lower domestics water sales and management - Utilities Business 555.9 547.5 -2% volume resulting a
Slide 40: 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 +33% +13% +25% 7.6 6.7 19.8 5.7 15.8 Q3'21 Q3'22 Q2'22 9M'21 9M'22 ▪ 33% YoY volume increase in Q3’22 is mainly due to an increased of utilities demand in Vietn
Slide 41: 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 13.8% YoY for Q3’22. Total Revenue Gross Profit Margin Unit : THB mm +13.8% 47.9% 46.5% 547.5 44.9% 70.8 42.5% 481.3 1.6 45.0% 44.8% 43.4% 40.3
Slide 42: Power Business - SPP Group Q3’22 vs Q3’21
VI. Appendix : Company Performance Power Business - SPP Group Q3’22 vs Q3’21 EGAT Unit : GWh Energy Dispatch IU 233 238 235 235 221 227 1,761 -5.1% 1,670 209 218 216 207 216 207 205 205 192 69 422 67 63 70 60 56 49 49 49 -0.1% 421 50 43 42 39 160 43 47 47 170 168 168 168 168 167 167 166 166 166 166
Slide 43: Power Business - SPP Group Q3’22 vs Q2’22
VI. Appendix : Company Performance Power Business - SPP Group Q3’22 vs Q2’22 EGAT Unit : GWh Energy Dispatch IU 238 229 235 1,670 +0.0% 1,670 222 215 216 203 221 216 201 203 205 205 192 69 432 421 70 -2.5% 67 169 56 50 63 52 52 54 39 160 43 42 44 47 58 47 +0.9% 168 166 166 166 165 163 163 162 162 16
Slide 44: Power Business - SPP Group (Cont’d) 9M’22 vs 9M’21
VI. Appendix : Company Performance Power Business - SPP Group (Cont’d) 9M’22 vs 9M’21 EGAT Unit : GWh Energy Dispatch IU 669 680 688 5,100 -1.8% 644 640 663 646 666 5,003 620 597 622 617 599 620 584 546 190 198 175 206 183 1,276 132 134 158 154 135 159 175 128 122 142 +0.4% 1,280 165 488 450 479 482
Slide 45: 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 0.0600 0.05 0.0925 0.0925 0.0925 0.0600 0.00 2017 2018 2019 2020 2021 2022 Interim Dividend Additional Dividend 18 November 2022 45
Slide 46: Profit and Loss Statement – Q3'22 vs Q2'22
IV. Financial Performance Profit and Loss Statement – Q3'22 (A) vs Q2'22 (A) Normalized Net Profit (NNP) Q3’22 (A) Vs Q2’22 (A), -173.5 MB or -65.8% + Positive • Higher Gross Profit before Depreciation (+16.3 MB): Utilities business (+15.5 MB) and Solar business (+0.8 MB) - Negative • Lower Normaliz
Slide 47: Balance Sheet – as of 30 September 2022
VI. Appendix : Company Performance Balance Sheet – as of 30 September 2022 Total Assets Liabilities and Equity Unit : MB Unit : MB (174) 585 889 27,138 25,839 25,839 865 434 27,138 Cash = 730 Cash = 905 Investment Investment TL =14,320 TL = 13,455 = 13,688 = 14,273 Others Others TE = 12,384 TE = 12,
Slide 48: 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 700 681 Equity MW Equity MW 112 153 /1 million m3 million m3 9M’2022 2022F 9M’2022 2022F To be Asia
Slide 49: 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 50: 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 51: 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 52: Sustainability Development Highlight – Waste Management
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 53: Clean Water For Planet Roadmap
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 54: 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 55: Governance and Economic Dimension – Digital Transformation
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 56: 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 57: 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 58: Governance and Economic Dimension – Risk Management
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
Slide 59: Listed in THSI SET Sustainability Index
VI. Appendix : Sustainability Development 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 sust
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