WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q3 2020 Earnings Presentation
50 slides from WHA Utilities and Power Public's earnings presentation, Nov 20, 2020
Slide 1: Analyst Meeting No.4/2020
Analyst Meeting No.4/2020 20 November 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 Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. Business Update vi. Appendix 3
Slide 4: Vision & Mission
I. Company Overview 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
Slide 5: WHAUP is the Flagship Company in Utilities and Power of WHA Group
I. Company Overview 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 2.48 million sqm the industrial estates with Data Center developer
Slide 6: 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 demand international power co
Slide 7: 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 8: 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 10 operating IEs plus 4 developing IEs (RY 36, SIL Phase 2, IRPC and Vietnam
Slide 9: Utilities Business - Our Utilities Customer Base
I. Company Overview Utilities Business - Our Utilities Customer Base WHAUP’s has established the strong operation in EEC 82% of WHAUP’s volume are distributed to area. heavy industry. Petrochemical 9M’20 VOLUME by IEs Others 40% 12% Consumer 6% 9% WHA 9M’20 ESIE 1 14% VOLUME ESIE Steel by 6% 8% INDU
Slide 10: Power Business - Growing Portfolio
I. Company Overview Power Business - Growing Portfolio Continuing Growth from Projects Under Construction and Committed Projects in Pipeline Unit: MWeq under Operation Targeted 100 MW solar rooftop by 2022; 6.7% As of 3Q2020, 46.8 MW* already secured CAGR and 26.7* under operation. ~592 577 MW 559 M
Slide 11: Power Business - Well-balanced and High Stability Portfolio
I. Company Overview 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% Matu
Slide 12: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. Business Update vi. Appendix 12
Slide 13: Executive Summary
I. Executive Summary Executive Summary NNI 3Q’20 reported at 194.7 MB, down 56% YoY mainly due to the decrease of normalized share of profit from GHECO-One. However, the NNI 3Q’20 increased by 10% QoQ as a results of higher contribution from power business UTILITIES BUSINESS POWER BUSINESS Slightly
Slide 14: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. 2020 Direction vi. Appendix 14
Slide 15: Utilities Business - Total Overall
III. Operating Performance Utilities Business - Total Overall * Utilities Portfolio Growth – Sale & Management Volume +4% +1% +2% -12%** -17%** -0.4%** YoY% QoQ% 81.4 85.0 YoY% 27.7 28.0 0.3 27.5 RW -16% -7% 13.3 RW -9% 0.2 5.1 26.8 4.4 IW -22% -3% 23.0 IW -15% 9.1 7.4 7.4 1.7 0.4 Value Value 0.9 -
Slide 16: Utilities Business - SDWTP
III. Operating Performance Utilities Business - SDWTP SDWTP - Average daily sales volume (100%) Contribution started from November 2019 Monthly Avg. Quarterly Quarter Volume Volume (1000’cmd) (mm3) 4Q'19 136 12.5 1Q'20 118 10.7 2Q'20 140 12.7 3Q'20 160 14.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct No
Slide 17: Power Business - IPP Group
III. Operating Performance Power Business - IPP Group Key Highlights 3Q’20 GHECO-One HHPC • Availability at 88.2% for 3Q’20 • Lower dispatch by 15% YoY o Forced outage total 8.5 days GIPP • Continue to stay on reserved shutdown mode • Full 100% Availability rate Quarterly 3Q’19 (A) 3Q’19 (A) GWh 3Q’
Slide 18: Power Business - IPP Group (Cont'd)
III. Operating Performance Power Business - IPP Group (Cont’d) Key Highlights 9M’20 GHECO-One HHPC • 93.9% Availability Rate • Lower dispatch by 21.4% YoY • Rainfall in 9M’20 is 1,586 mm which is the second worst historical GIPP rainfall since 2001 • Continue to stay on reserved shutdown mode • Full
Slide 19: Power Business - SPP Group
III. Operating Performance Power Business - SPP Group Key Highlights 3Q’20 GNLL, GVTP, GTS 1, and GTS 3-4 • EGAT dispatch was higher around 3% YoY • IU power demand was lower by around 3% YoY GTS 2 • 18 days Planned maintenance during 10 – 27 July 2020 • Lower EGAT and IU dispatch YoY as a result of
Slide 20: Power Business - SPP Group Quarterly 3Q'20 vs 3Q'19
III. Operating Performance Power Business - SPP Group Quarterly – 3Q’20 vs 3Q’19 EGAT GWh Energy Dispatch IU 1,732 -0.7% 1,720 227 230 238 238 222 224 213 222 216 216 223 203 201 206 419 -3.0% 407 188 186 67 69 59 56 55 51 54 56 45 37 54 33 60 33 47 49 +0.1% 1,312 1,313 171 171 171 170 170 170 170 1
Slide 21: Power Business - SPP Group 3Q'20 vs 2Q'20
III. Operating Performance Power Business - SPP Group (Cont’d) Quarterly – 3Q’20 vs 2Q’20 EGAT GWh Energy Dispatch IU +7.7% 1,720 238 1,598 227 224 216 218 223 201 213 210 203 206 +33.8% 407 193 186 193 196 304 69 171 56 55 54 50 49 45 37 54 33 35 25 34 29 49 37 +1.5% 1,294 1,313 171 170 170 169 169
Slide 22: Power Business - SPP Group 9M'20 Highlights
III. Operating Performance Power Business - SPP Group (Cont’d) Key Highlights 9M’20 BPWHA-1, GVTP, GTS1, and GTS 2 • Performed planned maintenance • Lower EGAT and IU dispatch YoY as a result of planned maintenance GTS 3 and GTS 4 • Lower dispatch to IU by around 12% YoY • Higher EGAT dispatch by ar
Slide 23: Power Business - SPP Group YTD
III. Operating Performance Power Business - SPP Group (Cont’d) YTD EGAT GWh Energy Dispatch IU -1.8% 4,966 4,877 651 650 671 671 630 629 605 635 626 568 591 593 594 587 585 -7.4% 556 1,216 1,126 146 173 170 149 191 184 174 140 148 142 132 100 106 160 136 91 484 478 481 479 474 487 480 487 465 480 46
Slide 24: Power Business - Solar Performance
III. Operating Performance Power Business - Solar Performance Energy Dispatch – Total Quarterly YTD MWh. MWh. +204.0% 16,979.1 +212.0% +19.6% 6,634.8 5,547.8 13,290.0 5,454.7 4,28 5,586.0 2,126.3 2.0 1,731.1 879.2 -9.8% -2.0% -3.2% 3,357.1 3,290.4 1,074.3 1,039.6 1,15 172.8 140.4 +24.5% 3.0 -19.9% 3
Slide 25: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. Business Update vi. Appendix 25
Slide 26: Financial Highlight 3Q'20 vs 3Q'19
IV. Financial Performance Financial Highlight 3Q’20 vs 3Q’19 Unit : THB mm 3Q’19 3Q’20 YoY Remarks Total Revenue 452.8 416.9 -7.9% - Lower Utilities Sales Volume mainly from lower demand - Utilities Business 449.8 402.1 -10.6% 48.2 MB - Revenue from Solar Rooftop projects continued to - Power Busine
Slide 27: Financial Highlight 3Q'20 vs 2Q'20
IV. Financial Performance Financial Highlight 3Q’20 vs 2Q’20 Unit : THB mm 2Q’20 3Q’20 YoY Remarks Total Revenue 403.9 416.9 +3.2% - Higher Utilities Sales Volume from Demineralized Water - Utilities Business 390.2 402.1 +3.0% and Premium Clarified Water - Revenue from Solar Rooftop projects continu
Slide 28: Financial Highlight 9M'20
IV. Financial Performance Financial Highlight 9M’20 Unit : THB mm 9M’19 9M’20 YoY Remarks Total Revenue 1,387.3 1,251.1 -9.8% - Lower Utilities Sales Volume mainly from the drought - Utilities Business 1,381.4 1,215.6 -12.0% and lower demand 97.7 MB - Lower Excessive Charge by 69.8 MB - Revenue from
Slide 29: Revenue and Normalized Share of Profit and Dividend Income
IV. Financial Performance Revenue and Normalized Share of Profit and Dividend Income Revenue and Normalized Share of Profit and Dividend Income was recorded at Baht 603.6 million in 3Q’20 Utilities = Utilities Operating Revenue + Other Utilities Revenue + Share of Profit (Utilities) Power = Solar Pr
Slide 30: Revenue and Normalized Share of Profit and Dividend Income (Cont'd)
IV. Financial Performance Revenue and Normalized Share of Profit and Dividend Income (Cont’d) Revenue and Normalized Share of Profit and Dividend Income was recorded at Baht 1,862.3 million in 9M’20 Utilities = Utilities Operating Revenue + Other Utilities Revenue + Share of Profit (Utilities) Power
Slide 31: Utilities Business – Domestic Revenue and Gross Profit Margin
IV. Financial Performance Utilities Business – Domestic Revenue and Gross Profit Margin Total Revenue from Utilities Business decreased by 10.6%YoY and 12.0%YoY for 3Q’20 and 9M’20 respectively but increased by 3.0% QoQ. Total Revenue - Utilities Business Gross Profit Margin - Utilities Business -12
Slide 32: Vietnam Utilities Business
IV. Financial Performance Vietnam Utilities Business Share of Profit Quarterly YTD Unit : MB Unit : MB Cua Lo47.1 Cua Lo 47.1 141.4 SDWTP w/o PPA SDWTP w/o PPA 0.1 0.6 1.1 0.9amortization amortization SDWTP w/ PPA 0.1 0.0 0.0 1.6 SDWTP w/ PPA amortization amortization (27.8) (37.6) (37.6) (94.5) (58
Slide 33: Power Business – Key Headlines
IV. Financial Performance Power Business – Key Headlines 3Q’20 IPP Business: GHECO-One • APR1 drop from previous year • FX Loss charging into P&L resulted from USD loan • Lower Energy Margin from unfavorable coal price • Started tax rate 10% since Nov/2019 (after applying 8-year tax exemption since
Slide 34: Power Business – Key Headlines (Cont'd)
IV. Financial Performance Power Business – Key Headlines (Cont'd) 9M’20 IPP Business: GHECO-One • APR1 drop from previous year • Lower Energy Margin from unfavorable coal price • Started tax rate 10% since Nov/2019 (after applying 8-year tax exemption since Nov/2011) GIPP • Dividend payment of 36.5
Slide 35: Power Business – Normalized Share of Profit and Dividend Payment
IV. Financial Performance Power Business – Normalized Share of Profit and Dividend Payment Normalized Share of Profit and Dividend Income for 3Q’20 and 9M’20 decreased 31.2%YoY and 36.4%YoY, respectively but increased 16.9% QoQ. /1 Normalized Share of Profit and Dividend Income Share of Profit and D
Slide 36: Consolidated Performance
IV. Financial Performance Consolidated Performance Consolidated EBITDA/1 and EBITDA Margin Consolidated Net Profit and Net Profit Margin/4 Unit : THB mm Unit : THB mm 73% 68% 58% 67% 68% 51% 58% 58% 51% 30% 36% 52% 53% -39.3% 30% 58% 58% 29% 27% 29% 53% 2,167.7 -58.1% 59.8 267.3 1,738.0 59.8 267.3 -
Slide 37: Profit and Loss Statement – 3Q'20 vs 3Q'19
IV. Financial Performance Profit and Loss Statement – 3Q'20 (A) Vs 3Q'19 (A) Normalized Net Income (NNI) w/ SDWTP PPA Amort. 3Q’20 (A) Vs 3Q’19 (A), -251.1 MB or -56.3% + Positive Higher Other Income (+27.8 MB): mainly due to dividend income from GIPP of 36.5 MB - Negative Lower Gross Profit bef
Slide 38: Profit and Loss Statement – 3Q'20 vs 2Q'20
IV. Financial Performance Profit and Loss Statement – 3Q'20 (A) Vs 2Q'20 (A) Normalized Net Income (NNI) w/ SDWTP PPA Amort. 3Q’20 (A) Vs 2Q’20 (A), +17.0 MB or +9.6% + Positive Higher Gross Profit before Depreciation (+4.4 MB): mostly due to new contribution Premium and consecutive higher demand
Slide 39: Profit and Loss Statement – 9M'20 vs 9M'19
IV. Financial Performance Profit and Loss Statement – 9M'20 (A) Vs 9M'19 (A) Normalized Net Income (NNI) w/ SDWTP PPA Amort. 9M’20 (A) Vs 9M’19 (A), -819.4 MB or -58.1% + Positive Lower Tax (+15.6 MB): mainly due to lower Earnings Before Tax (EBT) - Negative Lower Gross Profit before Depreciatio
Slide 40: Capital Structure and Financial Ratio
IV. Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 3Q’2020 Unit : THB mm Unit : THB mm 3,750 3,540 26,419 26,419 26,062 26,062 2,640 2,000 250 2,000 11,757 12,865 1,103 250 1,320 1,500 1,085 250 2,390 13,559 1,500 1,290 1,320 1
Slide 41: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. Business Update vi. Appendix 41
Slide 42: Water Situation in Rayong
V. Business Update Water Situation in Rayong Latest Water Situation in Rayong (as of 13 Nov 2020) %Current level of water to total capacity Klongyai Dokkrai (cap 40 MCM) (cap 79 MCM) 13-Nov-19 37% 13-Nov-19 46% %Current level of water to total capacity 13-Nov-20 106% 13-Nov-20 94% 83%1 Eastern Regio
Slide 43: Growing Beyond the Core
V. Business Update Growing Beyond the Core Continuously Expand Launch Innovative Product and Solutions Utilities Business in New RECLAMATION DEMINERALIZED WATER AND PREMIUM PRODUCT WHA IE SEAWATER DESALINATION (WHA RY36, WHA IER and WHA MUNICIPAL WASTEWATER TREATMENT WASTEWATER SIL2) Reclamation Wat
Slide 44: Specializing in Solar for Industrial Users
V. Business Update Specializing in Solar for Industrial Users Solar Rooftop Projects of 6.6 MW MG Solar Carpark Project achieved COD in 3Q’20 “Thailand’s Largest Solar Carpark Project” Thai Forging Mercator ZF TRW Petchaburi Songkhla ESIE, Rayong WHA ESIE2 Floating Solar Capacity 1.4 MW Capacity 0.6
Slide 45: Introducing Innovative Energy Solutions
V. Business Update 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 ERC Sandbox Benefits of P2P Energy Trading Benefits of Smart Microgrid WHA signed a Memorandum of Und
Slide 46: Agenda
Agenda i. Company Overview ii. Executive Summary iii. Operating Performance Agenda iv. Financial Performance v. Business Update vi. Appendix 46
Slide 47: Power Business - GHECO-One
VI. Appendix Power Business - GHECO-One Availability Payment Profile with TFRS15 • Even though TFRS15 is applied, there is a significant drop of net AP revenue from 2019 to 2020. But expected to maintain at this level going forward TFRS 15 – Revenue Profile of GHECO-One 1 AP Revenue without TFRS 15
Slide 48: Power Business - GHECO-One (Cont'd)
VI. Appendix Power Business - GHECO-One (Cont’d) Cash flow to Shareholders • Lower AP is substantially offset by lower debt services 1 2 3 4 5 Revenue6vs. Debt Services AP 7 8 9 10 11 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 AP Revenue (FX = 33.64) Debt Service (Principal + Interest) 48
Slide 49: Shareholders and Management Structure
VI. Appendix Shareholders and Management Structure Shareholding Structure Board of Directors Foreign Mr. David Richard Nardone Institutions Ms. Jareeporn Jarukornsakul Retail 1% 18% Chairman of Board of Directors Director Domestic Institutions 7% Mr. Vivat Jiratikarnsakul Dr. Niphon Bundechanan WHA
Slide 50: Power
Power
WHA Utilities and Power Public Company — Q3 2020 Earnings Presentation on 6ix