Tpi Polene Power Public Co., Ltd. · SET:TPIPP

Tpi Polene Power Public — Q2 2021 Earnings Presentation

57 slides from Tpi Polene Power Public's earnings presentation, 2021

  1. Slide 1: TPI Polene Power Public Company Limited Investor Presentation

    TPI Polene Power Public Company Limited Investor Presentation

  2. Slide 2: Table of Content

    Table of Content Section 1.Company & Business Overview 2.Financial Highlights 3.Key Operation Highlights Strictly Private & Confidential 1

  3. Slide 3: Company & Business Overview

    Company & Business Overview Strictly Private & Confidential 2

  4. Slide 4: TPIPP as TPIPL's Flagship for Power Business

    TPIPP as TPIPL’s Flagship for Power Business Unit: THBmm TPIPP (Q2 2021) TPIPP (H1 2021) Main Business Electricity generation from waste heat and refused derived fuel (RDF) power plants and operation in petrol and gas stations. Total Revenue 2,981 5,706 Operating EBITDA * 1,501 2,904 Net Profit 1,18

  5. Slide 5: 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 Q2 2021 Total Sales Revenue  Operates refuse derived fuel (“RDF”) fired & waste-heat recovery power plants with off-take arr

  6. Slide 6: 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 Total capacity in operation 440 MW WH Coal/RDF Coal RDF Solid waste disposal project 464 Total capacity under construction 24 MW 440 24 Installed Power Pl

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: Financial Highlights

    Financial Highlights Strictly Private & Confidential 8

  10. Slide 10: 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) 5,319.6 5,052.7 22.0 36.7 5,574.0 865.5 936.1 5,329.0 254.5 2,797.1 276.3 2,678.2 2,522.5 9.5 25.7 11.0 4,346.7 473.7 347.8 5

  11. Slide 11: Cost of Sales & Gross Profit

    Cost of Sales & Gross Profit Q2 Y2021 Cost of Sales Breakdown (THBmm) Gross Profit (THBmm) and Gross Profit Margin(1) (%) Energy & Utilities: 48.7% 48.5% 48.9% 44.5% 44.6% Raw materials & Fuel 49% Labor 9% Others 7% 2,714.1 Maintenance Depreciation 29.2 7% 2,372.2 14% Electricity 31.7 Waste Heat 14%

  12. Slide 12: Cost & Expenses vs. EBITDA & NPAT

    Cost & Expenses vs. EBITDA & NPAT Cost & Expenses Items (THBmm) Operating EBITDA(1) (THBmm) and Operating EBITDA margin(2) (%) 3,600.0 49.7% 52.1% 52.9% 51.3% 3,383.4 49.3% 3,304.2 159.4 108.4 3,100.0 200.4 330.9 38.6 33.2 2,649.8 2,903.7 2,600.0 1,376.4 1,403.1 1,500.6 2,100.0 H1 2020 H1 2021 Q2 20

  13. Slide 13: Comparing Profit and Loss Statement – YoY and QoQ

    Comparing Profit and Loss Statement – YoY and QoQ Unit :THBmm 2020 2021 2020 2021 2021 Compare (%) H1 H1 Q2 Q1 Q2 YoY (H1) YoY (Q) QoQ Income Revenue from base tariff 2,723.7 2,811.0 1,448.6 1,285.0 1,525.9 3.2% 5.3% 18.7% Revenue from power adder 2,307.0 2,471.8 1,220.1 1,226.4 1,245.4 7.1% 2.1% 1.

  14. Slide 14: Operating Statistic

    Operating Statistic Generated Amount of Electricity (M.KWh) and Capacity (MW) 2020 2021 Diff %Change 615.3 Q2 545.46 602.32 +56.86 +10.42 602.3 H1 1,019.46 1,107.22 +87.76 +8.61 554.9 545.5 531.3 Q1 2021 Q2 2021 Diff %Change 510.9 504.9 492.0 3M 504.90 602.32 +97.42 +19.29 478.9 474.0 392.4 354.4 30

  15. Slide 15: Debt Profile and Leverage Ratios

    Debt Profile and Leverage Ratios Interest Bearing Liabilities (THBmm) Cash / Cash Equivalents & Other current financial assets (THBmm) Increase in long-term loans from financial institution and related parties 15,659.4 5,607.1 12,899.7 4,230.7 4,410.8 3,340.3 3,286.8 7,054.2 8,000.0 4,000.0 285.9 20

  16. Slide 16: Key Operation Highlights

    Key Operation Highlights Strictly Private & Confidential 15

  17. Slide 17: TPIPP's WTE Power Plant Situation

    1 TPIPP’ S WTE Power Plant Situation Capacity 2009 2016 & 2017 2018 2019-2020 60 MW 70 MW 110 MW 260 MW Power Plants TG1 20 MW with TG1 20 MW TG1 20 MW TG1 20 MW Electricity TG2 20 MW Sales to TG2 20 MW TG2 20 MW TG2 20 MW TPIPL TG7 (3) 70 MW TG4 30 MW TG4 30 MW TG7 70 MW TG8 (4) 150 MW - 80 MW (PPA

  18. Slide 18: Boilers' Type

    BOILERS’ TYPE RDF – CFB COAL/RDF WHRB MSW - Grate CFB WHB AQC ,SP 1 B1 B11 B6 B12 WHB AQC ,SP 2 B2 B3 B8 B13 WHB AQC ,SP 3 B4 B14 B5 WHB AQC, SP 4 B15 B9 B10 Strictly Private & Confidential 17

  19. Slide 19: COD and ADDER Schedule for each plant

    1 TPIPP’ S WTE Power Plant Situation COD and ADDER Schedule for each plant Expiration of SPP PPA TG COD ADDER ADDER 1 18 MW TG3 16 JAN 2015 7Y JAN 2022 2 55 MW TG5 6 Aug 2015 7Y AUG 2022 3 90 MW TG4+TG6 18 APR 2018 7Y APR 2025 Strictly Private & Confidential 18

  20. Slide 20: COD and BOI Schedule for each plant

    1 TPIPP’ S WTE Power Plant Situation COD and BOI Schedule for each plant TAX TG Type Off taker COD INCENTIVE TG 1-2 WH TPIPL Jun 2009 8Y TG 3 RDF EGAT Jan 2015 8Y TG 4 WH TPIPL/EGAT Jan 2016/Apr 2018 8Y TG 5 RDF EGAT Aug 2015 8/5 Y TG 6 RDF EGAT Apr 2018 8Y TG 7 Coal/RDF TPIPL Aug 2018 - TG 8 Coal T

  21. Slide 21: Trend of FT Adjustment Sell for SPP

    1 TPIPP’ S WTE Power Plant Situation Trend of FT Adjustment Sell for SPP 0.0000 -0.0500 -0.1000 -0.1383 -0.1500 -0.1951 -0.2000 -0.2254 -0.2500 -0.2632 -0.2802 -0.3016 -0.3000 -0.3195 -0.3058 -0.3406 -0.3500 -0.3477 -0.3627 -0.4000 -0.4500 -0.4715 -0.5000 Strictly Private & Confidential 20

  22. Slide 22: Trend of FT Adjustment Sell for TPIPL

    1 TPIPP’ S WTE Power Plant Situation Trend of FT Adjustment Sell for TPIPL 0 -0.05 -0.1 -0.1160 -0.1243 -0.1590 -0.15 -0.1532 -0.2 -0.25 -0.2477 -0.3 -0.35 -0.3729 -0.4 Strictly Private & Confidential 21

  23. Slide 23: Electricity Sale and Revenue

    1 TPIPP’ S WTE Power Plant Situation Electricity Sale Unit 3,000 2,498 2,500 Million Kwh 2,174 1,978 2,000 1,365 1,442 1,500 1,210 1,056 SPP 1,000 768 809 TPIPL 500 TOTAL 85% 40% 59% 95% 42% 64% 99% 69% 85% - Utilization Rate 2019 2020 Estimate 2021 Revenue 14,000 11,809 12,000 Million Baht 10,590 9

  24. Slide 24: SPP Electricity Utilization

    1 TPIPP’ S WTE Power Plant Situation SPP 700.00 600.00 500.00 Million Kwh 400.00 99.55% 100.00% 95.35% 300.00 200.00 100.00 - Year2020 Q1_2021 Q2_2021 Strictly Private & Confidential 23

  25. Slide 25: SPP Monthly Electricity Utilization

    1 TPIPP’ S WTE Power Plant Situation SPP 250.00 200.00 Million Kwh 150.00 99.93% 99.09% 100.00% 100.00% 99.97% 95.35% 99.64% 100.00 50.00 - Year2020 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Strictly Private & Confidential 24

  26. Slide 26: TPIPL Electricity Utilization

    1 TPIPP’ S WTE Power Plant Situation TPIPL 700.00 600.00 500.00 Million Kwh 400.00 300.00 66.63% 59.55% 200.00 43.72% 100.00 - Year2020 Q1_2021 Q2_2021 Strictly Private & Confidential 25

  27. Slide 27: TPIPL Monthly Electricity Utilization

    1 TPIPP’ S WTE Power Plant Situation TPIPL 250.00 200.00 Million Kwh 150.00 80.97% 100.00 72.59% 59.55% 58.45% 54.56% 45.97% 50.00 18.17% - Year2020 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Strictly Private & Confidential 26

  28. Slide 28: SPP+TPIPL Electricity Utilization

    1 TPIPP’ S WTE Power Plant Situation SPP+TPIPL 700.00 83.32% 600.00 77.45% Million Kwh 500.00 71.64% 400.00 300.00 200.00 100.00 - Year2020 Q1_2021 Q2_2021 Strictly Private & Confidential 27

  29. Slide 29: SPP+TPIPL Monthly Electricity Utilization

    1 TPIPP’ S WTE Power Plant Situation SPP+TPIPL 250.00 90.49% 86.46% 200.00 77.45% 78.77% 77.01% 73.01% Million Kwh 150.00 59.05% 100.00 50.00 - Year2020 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Strictly Private & Confidential 28

  30. Slide 30: RDF Cost (Baht/ton)

    1 TPIPP’ S WTE Power Plant Situation RDF 1200 1,003.88 1000 860.44 800 Baht/ton 728.94 600 400 200 0 Year2020 Q1_2021 Q2_2021 Strictly Private & Confidential 29

  31. Slide 31: SPP Price (Baht/kWh)

    1 TPIPP’ S WTE Power Plant Situation SPP 2.80 2.70 2.60 2.51 Baht/ Kwh 2.50 2.40 2.38 2.30 2.21 2.20 2.10 2.00 Year2020 Q1_2021 Q2_2021 Strictly Private & Confidential 30

  32. Slide 32: TPIPL Price (Baht/kWh)

    1 TPIPP’ S WTE Power Plant Situation TPIPL 2.80 2.66 2.71 2.70 2.60 2.47 Baht/ Kwh 2.50 2.40 2.30 2.20 2.10 2.00 Year2020 Q1_2021 Q2_2021 Strictly Private & Confidential 31

  33. Slide 33: Grate Boiler B13 B14 B15

    1 TPIPP’ S WTE Power Plant Situation Grate Boiler B13 B14 B15 Strictly Private & Confidential 32

  34. Slide 34: RDF Production Plan 2021

    2 MSW and RDF Raw materials Management RDF Production Plan 2021 Raw Mat RDF Grate MSW 2,500 300 2,200 LF 3,000 2,550 450 RDF 1,500 1,500 Ton per day 7,000 4,350 2,650 Strictly Private & Confidential 33

  35. Slide 35: A solid waste management center

    2 MSW and RDF Raw materials Management A solid waste management center Saraburi Plant Others Province MSW MSW MSW Pre-sorting Mat MSW Transfer station RDF Plant 5 Plants +Suppliers RDF Plant Heavy Parts RDF Presorting Plant 11 Plants ATAD MBT +Suppliers RDF-L Grate Boiler Fertilizer CFB Boiler Cemen

  36. Slide 36: RDF Production

    2 MSW and RDF Raw materials Management RDF Production Plant capacity 200 ton/day Total Production 1000 ton/day Strictly Private & Confidential 35

  37. Slide 37: Presorting Plant

    2 MSW and RDF Raw materials Management Presorting Plant Pre-Sorting Production Plant Capacity 200 ton/day 1. Nakornratchasima 2. Ayuttaya 3. Samutsakorn 4. Rayong 5. Chonburi 6. Saraburi 7. Chonburi ( Bowin) 8. Chanthaburi 9. Phatumtani 10.Ayuttaya 11.Lopburi Strictly Private & Confidential 36

  38. Slide 38: RDF Supply for Cement Kiln Plants

    2 MSW and RDF Raw materials Management RDF Supply for Cement Kiln Plants • RDF requirement for coal replacement in 4 Kiln Plants is 2,000 -2,500 ton per day • Production and Selling RDF to TPIPL is approx. 600,000 Ton per year • Estimate Revenue for RDF revenue 500 Mil baht per year • Investment of

  39. Slide 39: Strictly Private & Confidential

    Strictly Private & Confidential 38

  40. Slide 40: Strictly Private & Confidential

    Strictly Private & Confidential 39

  41. Slide 41: Strictly Private & Confidential

    Strictly Private & Confidential 40

  42. Slide 42: Plant Operation Improvement 2021-2022

    PLANT OPERATION IMPROVEMENT 2021-2022  Coal replacement by High Heating Value RDF  Improvement of Water Cooling System to increasing 1-2 % of Power Plant Efficiency  Upgrade Combustion parts of RDF Boilers to improve Plant Availability • Carbon Credit Verification Strictly Private & Confidential

  43. Slide 43: WTE Future Project

    3 WTE Future Project Capacity 2021 2022 2023 2025 260 MW 190 MW 190 MW 190 MW. TG1 20 MW Power Plants TG1 20 MW TG1 20 MW TG1 20 MW with TG2 20 MW Electricity TG7 70 MW TG2 20 MW TG2 20 MW TG2 20 MW Sales to TPIPL TG8 150 MW TG8 150 MW TG8 150 MW TG8 150 MW 180 MW (PPA 163 MW) 250 MW (PPA 203 MW) 28

  44. Slide 44: WTE Future Project

    3 WTE Future Project Strictly Private & Confidential 43

  45. Slide 45: WTE Future Project: Songkla Provincial Administrative Organization

    3 WTE Future Project Songkla Provincial administrative Oraganization MSW 500 ton/day Boiler Install Capacity 2x350 ton/day Generator Capacity 12 MW Net Contract capacity 8.0 (9.9) MW MSW Tipping fee 350 Baht/ton +10 % Every 3 year Electricity Price 5.78 Baht/Kwh Year 1-8 5.07 Baht/Kwh Year 9-20 Inve

  46. Slide 46: Winning bid announcement

    ประกาศผูช้ นะการเสนอราคาจัดหาเอกชนร่วมทุนก่อสร้างและบริหารจัดการระบบกาจัดขยะมูล ฝอย Strictly Private & Confidential 45

  47. Slide 47: WTE Future Project: Municipality Muang Nakorn Ratchasrima

    3 WTE Future Project Municipality Muang Nakorn Ratchasrima MSW 500 ton/day Boiler Install Capacity 2x350 ton/day Generator Capacity 12.0 MW Net Contract capacity 9.9 MW MSW Tipping fee 300 Baht/ton + Inflation rate every 3 year Electricity Price 5.78 Baht/Kwh Year 1-8 5.07 Baht/Kwh Year 9-20 Investm

  48. Slide 48: WTE Future Project: Municipality Thap Kwang Saraburi

    3 WTE Future Project Municipality Thap Kwang Saraburi RDF and MSW TG 7 Boiler Install Capacity B13-15 3x 750 ton/day Generator Capacity 70 MW Net Contract capacity 40 MW Electricity Price 3.66 Baht/Kwh Investment Cost 500 Mil Baht Revenue 1,200 Mil Baht / year Status Under Implement COD 2022 Strictl

  49. Slide 49: Strictly Private & Confidential

    Strictly Private & Confidential 48

  50. Slide 50: TPIPP Greenhouse Gas Reduction: Mitigation Mechanism

    4 TPIPP Greenhouse Gas Reduction Greenhouse Gas Mitigation Mechanism Thailand Greenhouse Gas Management Organization ( TGO) 1.Thailand Voluntary Emission Reduction Project ( T-VER )  TVERs Carbon Credit 82,056 Ton  Results-Based Payment 39,197 Ton  Zukunft des Kohlenstoffmarketes foundation 4 EU/

  51. Slide 51: TPIPP Greenhouse Gas Reduction

    4 TPIPP Greenhouse Gas Reduction Green Power Plant YEAR 2020 220 / 440 50 % YEAR 2021 150 / 440 34 % YEAR 2023 127 / 476 20 % B8 RDF replacement 50-80 % YEAR 2025 127 / 526 < 10 % Coal Power Plant Capacity Per Total Power Plant Capacity Strictly Private & Confidential 50

  52. Slide 52: TPIPP Greenhouse Gas Reduction

    4 TPIPP Greenhouse Gas Reduction WTE 1 Ton MSW 2.32 Ton POWER PLANT 1.3 mil Ton-RDF 4 mil Ton-MSW 10 mil Ton-CO2 RDF FOR CEMENT PLANT 0.65 mil Ton-RDF 2 mil Ton-MSW 5 mil Ton-CO2 Strictly Private & Confidential 51

  53. Slide 53: TPIPP Certification and Awards 2021

    4 TPIPP Certification and Awards 2021 SOCOTEC CERTIIFICATION INTERNATIONAL Strictly Private & Confidential 52

  54. Slide 54: Smart City Clean Energy Center

    5 Future MEGA Project Southern Economic Zone (SEZ) New Generation Technology Industrial Park Smart City Deep sea Ports and Distribution Center Clean Energy Center Strictly Private & Confidential 53

  55. Slide 55: The development of Southern Economic Zone (SEZ)

    5 Future MEGA Project The development of Southern Economic Zone (SEZ) ― On October 4th 2016, the cabinet had a resolution to approve the promotion of the “Triangle of Security, Prosperity, Sustainability” for 4 prototype cities. 1. Betong District, Yala Province 2. Su ngai go lok District, Narathiwa

  56. Slide 56: The development of Southern Economic Zone (SEZ) (Continue)

    5 Future MEGA Project The development of Southern Economic Zone (SEZ) (Continue) ― On January 7th 2021, there is a subordinate legislation by the MOC to waive all register and notarization fees to all companies in 4 southern provinces and 4 districts in Songkla. ― On February 22nd 2021, the investig

  57. Slide 57: Q & A

    Q&A Strictly Private & Confidential 56

TPI Polene Power Public Company — Q2 2021 Earnings Presentation on 6ix