WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q2 2024 Earnings Presentation
55 slides from WHA Utilities and Power Public's earnings presentation, Aug 23, 2024
Slide 1: Q2/2024 Opportunity Day
Q2/2024 Opportunity Day 23 August 2024 WHA Utilities and Power Public Company Limited (WHAUP)
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
I. COMPANY OVERVIEW II. EXECUTIVE SUMMARY III. OPERATING PERFORMANCE IV. FINANCIAL PERFORMANCE V. BUSINESS UPDATE VI. APPENDIX 33
Slide 4: WHAUP is the Flagship Company in Utilities & Power Business of WHA Group
I.COMPANY OVERVIEW WHAUP is the Flagship Company in Utilities & Power Business of WHA Group Utilities & Power ▪ #1 Logistics developers, with more than ▪ #1 Industrial Estate Developer ▪ Exclusive utilities provider in the ▪ To be one-stop service for Data 2.96 million sqm under owned and industrial
Slide 5: Company Overview – Utilities Business
I.COMPANY OVERVIEW COMPANY OVERVIEW – UTILITIES BUSINESS Sole provider of utilities to manufacturers/ factories in leading industrial estates with a concrete plan to capture increasing demand from heavy users and expansion outside i.e. other IEs, non-IE area and international Raw Water Industrial Wa
Slide 6: Utilities Business at a Glance
I.COMPANY OVERVIEW UTILITIES BUSINESS AS 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 user
Slide 7: Utilities Business – Asset Location
I.COMPANY OVERVIEW UTILITIES BUSINESS – ASSET LOCATION Thailand Vietnam WHAUP’s exclusive rights to operate and provide utilities services to customers in WHA Industrial Estates and 2 other Vietnam, WHAUP holds 47% stake in Cua Lo water plant in Nghe An province and 34% stake in SDWTP water areas ou
Slide 8: Company Overview – Power Business
I.COMPANY OVERVIEW COMPANY OVERVIEW – POWER BUSINESS Active power provider and investor with strategic partnership with leading Thai and international power companies Conventional Solar Hydro Waste to Energy 528 382 19 3 MWeq MWeq MWeq MWeq Total Secured Capacity (932* Equity MW) : 682 Equity MW und
Slide 9: Power Business – Portfolio Breakdown as of Q2'24
I.COMPANY OVERVIEW POWER BUSINESS – PORTFOLIO BREAKDOWN AS OF Q2’24 Total Capacity (932* Equity MW) : 682 Equity MW under Operation + 250 Equity MW under developing By Type By Type 2% 0.3% Gas (37%, 297 eq MW) Conventional Coal (28%, 231 eq MW) 32% Total Renewable Total (Solar, Waste-to-Energy) Sola
Slide 10: Sustainability Highlight
I.COMPANY OVERVIEW SUSTAINABILITY HIGHLIGHT Wastewater Management Projects Reclamation Water Value-added products Saving 7.3 mm3 per year of Converting 6.5 mm3 per year total water withdrawal and of reclamation water to Value- water discharge added water SUSTAINABLE DEVELOPMENT Solar Rooftop Project
Slide 11: Sustainability Highlight (Cont'd)
I.COMPANY OVERVIEW SUSTAINABILITY HIGHLIGHT (CONT’D) WHAUP supports WHA Group to achieving Net Zero Greenhouse Gas Emissions by 2050 WHAUP Achieved Carbon Neutrality since 2021 WHAUP provides solar power, with private PPA scheme, creating Avoided CO2 51,497 tCO2e Emission offsetting CO2 Emissions fr
Slide 12: Agenda
I. COMPANY OVERVIEW II. EXECUTIVE SUMMARY III. OPERATING PERFORMANCE IV. FINANCIAL PERFORMANCE V. BUSINESS UPDATE VI. APPENDIX 12 12
Slide 13: Key Highlights
II.EXECUTIVE SUMMARY KEY HIGHLIGHTS % change % change Q2’23 Q1’24 Q2’24 6M’23 6M’24 Unit : MB YoY QoQ YoY Revenue, Normalized Share of Profit and Dividend 1) 1,063.7 1,046.5 958.0 -10% -8% 1,877.0 2,004.6 7% Income 1.1 Revenue 789.9 729.3 733.9 -7% 1% 1,429.6 1,463.2 2% - Utilities Business/1 663.7
Slide 14: Agenda
I. COMPANY OVERVIEW II. EXECUTIVE SUMMARY III. OPERATING PERFORMANCE IV. FINANCIAL PERFORMANCE V. BUSINESS UPDATE VI. APPENDIX 14 14
Slide 15: Utilities Business – Total Sales and Management Volume
III.OPERATING PERFORMANCE UTILITIES BUSINESS – TOTAL SALES AND MANAGEMENT VOLUME 3M 6M • Domestics Sales volume in Q2’24 increased by 7% YoY mainly driven • Domestics Sales volume in 6M’24 increased by 11% YoY mainly driven by the growth in all products, except raw water. by value-added water. • Sal
Slide 16: Power Business – IPP Group
III.OPERATING PERFORMANCE POWER BUSINESS – IPP GROUP Q2’24 (A) vs Q2’23 (A): GHECO-One: • Higher energy dispatch as there was zero energy dispatch in Q2’23 from reserved shutdown since 10 Mar 2023 vs 1-month reserved shutdown in Q2’24 (since 1 Jun 24) • Availability factor was in line at 100% in Q2’
Slide 17: Power Business – IPP Group
III.OPERATING PERFORMANCE POWER BUSINESS – IPP GROUP 3M Q2’23 (A) Q2’23 (A) Q2’24 (A) Q2’24 (A) Unit : GWh Energy Dispatch Q1’24 (A) Unit : GWh Availability Q1’24 (A) -19% -6% +36% +42% +37% 1,204 100% 100% 976 97% 98% 100% 87% 131 123 164 91 116 120 - Gheco-One HHPC Glow IPP Gheco-One Glow IPP 6M 6
Slide 18: Power Business – SPP Group
III.OPERATING PERFORMANCE POWER BUSINESS – SPP GROUP Q2’24 (A) vs Q2’23 (A): • Total energy sales declined by -2.3% YoY derived from -2.6% lower EGAT dispatch and -1.0% IU demand. • GTS 2&3 performed C-level inspection in Q2’24 which led to lower dispatch to EGAT during the period. • GNLL had 14-day
Slide 19: Power Business – SPP Group
III.OPERATING PERFORMANCE POWER BUSINESS – SPP GROUP 3M Q2’23 (A) Q2’23 (A) Q2’24 (A) Q2’24 (A) Unit : GWh Energy Dispatch Q1’24 (A) Unit : GWh Availability Q1’24 (A) -3% +4% -1% -4% -2% +2% 95.6% 92.1% 92.6% 1,643 1,606 1,578 1,249 1,216 1,172 394 389 406 1 EGAT 2 IU 1 + Total Total 2 SPP Business
Slide 20: Power Business – Solar Energy Dispatch
III.OPERATING PERFORMANCE POWER BUSINESS – SOLAR ENERGY DISPATCH Power Dispatch: • Solar energy dispatch continued to increase in accordance with growing capacity under operation (104 MW as of Q2’23 vs 132 MW as of Q2’24) 3M 6M Unit : GWh Unit : GWh +44% +20% +39% 75.3 2.4 41.1 54.3 1.2 2.3 34.2 28.
Slide 21: Agenda
I. COMPANY OVERVIEW II. EXECUTIVE SUMMARY III. OPERATING PERFORMANCE IV. FINANCIAL PERFORMANCE V. BUSINESS UPDATE VI. APPENDIX 21 21
Slide 22: Financial Highlight Q2'24 vs Q2'23
IV.FINANCIAL PERFORMANCE FINANCIAL HIGHLIGHT Q2’24 VS Q2’23 Unit : MB Q2’23 Q2’24 YoY Remarks 1. Total Revenue, NSOP and 1,063.7 958.0 -10% Dividend Income 1.1 Total Revenue 789.9 733.9 -7% - The main factor was lower revenue from excessive charge (108.0 MB - Utilities Business 663.7 605.5 -9% in Q2
Slide 23: Financial Highlight 6M'24 vs 6M'23
IV.FINANCIAL PERFORMANCE FINANCIAL HIGHLIGHT 6M’24 VS 6M’23 Unit : MB 6M’23 6M’24 YoY Remarks 1. Total Revenue, NSOP and 1,877.0 2,004.6 7% Dividend Income 1.1 Total Revenue 1,429.6 1,463.2 2% - Mainly driven by revenue from Value-Added product from new - Utilities Business 1,186.2 1,216.6 3% custom
Slide 24: Power Business – Normalized Share of Profit and Dividend Income
IV.FINANCIAL PERFORMANCE POWER BUSINESS – NORMALIZED SHARE OF PROFIT AND DIVIDEND INCOME Normalized Share of Profit and Dividend Income: • Normalized Share of Profit and Dividend income decreased by 27% YoY in Q2’24 but increased 7% YoY in 6M’24 3M 6M Unit : MB Unit : MB +7% -27% -33% 501.6 470.5 5.
Slide 25: IU Gas Spread and SPP Business
IV.FINANCIAL PERFORMANCE IU GAS SPREAD AND SPP BUSINESS 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 (F) Q4'24 (F) Avg. total IU tariff Gas cost 25 25
Slide 26: Utilities Business – Normalized Share of Profit (Vietnam)
IV.FINANCIAL PERFORMANCE UTILITIES BUSINESS – NORMALIZED SHARE OF PROFIT (VIETNAM) SDWTP +2750% +25% Unit : MB +421.8% Unit : MB 3M 6M 39.5 21.9 - 17.6 - 57.9 31.3 (0.8) 26.6 +268% +18% (12.3) YoY YoY 8.5 +847.5% 6.1 (9.3) (9.3) (9.0) (18.4) (18.4) Q1’24 6M’23 6M’24 Q2’23 Q2’24 Share of profit excl.
Slide 27: Capital Structure and Financial Ratio
IV.FINANCIAL PERFORMANCE CAPITAL STRUCTURE AND FINANCIAL RATIO Statement of Financial Position Debt Maturity as of 30 June 2024 Unit : MB 29,817 30,362 30,362 Average cost of debt of 3.15% 29,817 3,700 3,120 14,658 15,211 2,500 2,050 500 1,592 1,589 1,750 3,700 1,500 13,567 13,563 3,120 2,050 1,750
Slide 28: 5-Year Financial Target (2024-2028)
IV.FINANCIAL PERFORMANCE 5-YEAR FINANCIAL TARGET (2024-2028) % EBITDA Margin Total Revenue, Normalized share of profit and dividend income in next 5 years (2024-2028) > 50% Total 5 years = 30,000 MB 8,300 5 – year CAPEX 4,228 2x ≈ 21,200 MB 2023 2028(F) 28 28
Slide 29: Financial Activities – New Bonds No.1/2024
IV.FINANCIAL PERFORMANCE FINANCIAL ACTIVITIES New Bonds No.1/2024 Tranch I Tranch II Tranch III Plain Vanilla Bond Green Bond Zero Coupon Bond Issue size THB 400 MB. Issue size THB 800 MB. Issue size THB 1,500 MB. Maturity & 3 Yr. / 3.28% p.a. Maturity & 5 Yr. / 3.53% p.a. Maturity & 2.10 Yr. / 3.20
Slide 30: Agenda
I. COMPANY OVERVIEW II. EXECUTIVE SUMMARY III. OPERATING PERFORMANCE IV. FINANCIAL PERFORMANCE V. BUSINESS UPDATE VI. APPENDIX 30 30
Slide 31: Utilities Business – Projects Update
V.BUSINESS UPDATE UTILITIES BUSINESS – PROJECTS UPDATE New contracts Projects in pipeline WHA Rayong 36 Expansion of water treatment and wastewater treatment production at WHA Rayong 36 o Total additional plant capacity: Water = 0.4 million m3 per year. Wastewater = 0.3 million m3 per year o Expecte
Slide 32: Power Business – Enlarging Renewables Portfolio
V.BUSINESS UPDATE POWER BUSINESS – ENLARGING RENEWABLES PORTFOLIO Selected Projects commissioning in Q2’24 Selected Projects to be completed in 2024 5 Projects COD in Q2’24 Total Total capacity of 7 MW 132 MW In operation as of June 24 Quality Minerals Wisewoods Lopburi Phetchaburi Capacity 3.0 MW C
Slide 33: Power Business – Enlarging Renewables Portfolio (Cont'd)
V.BUSINESS UPDATE POWER BUSINESS – ENLARGING RENEWABLES PORTFOLIO (CONT’D) Solar Private PPA projects Selected Solar Private PPA projects signed in Q2’24 signed in Q2’24 APM Agro 11 New Solar projects signed in Q2’24 With a total capacity of 13 MW Solar farm total capacity of 4.4 MW Total APM Agro R
Slide 34: Power Business – FiT Bidding
V.BUSINESS UPDATE POWER BUSINESS – FiT BIDDING Phase 1 Bidding in 2023 Phase 2 Bidding: Upcoming WHAUP won the bidding of solar power plants with a Feed-in-Tariff (FiT) Opportunity from the new PDP 2024. scheme in Phase 1 for 5 projects with a total installed capacity of 125.4 MW Equity 125 MW Solar
Slide 35: Power Business – Smart Energy Solution
V.BUSINESS UPDATE POWER BUSINESS – SMART ENERGY SOLUTION Charging EV Fleet Provision Business & Maintenance • EV Public Charging Station • EV Charger on Premise • EV Fleet Rental • After sale Service – O&M Charging Ancillary Infrastructure • Charger Mobility As A Service • Battery Storage • Energy S
Slide 36: Power Business – Smart Energy Solution (Cont'd)
V.BUSINESS UPDATE POWER BUSINESS – SMART ENERGY SOLUTION (CONT’D) Q2’24 Achievements Strategic Initiatives & 2024 Targets WHAUP strives to be the flagship CPO for commercial vehicles, introducing a new business venture that offers comprehensive EV charging solutions, synergistically aligned with Gre
Slide 37: Awards & Recognitions
V.BUSINESS UPDATE AWARDS & RECOGNITIONS 2024 AWARDS 2023 AWARDS WHAUP Earn Recognition in Thailand's ESG100 Ranking WHAUP “Commended Sustainability Excellence Award” at SET Awards 2023 The ESG100 ranking, compiled by Thaipat Institute's ESG Rating unit since 2015, selects Sustainability Excellence c
Slide 38: Target Deliverables
V.BUSINESS UPDATE TARGET DELIVERABLES Target Water Sales & Managed Volume Target Total Secured PPA Total Water Supply & Wastewater 84 178 Total Secured PPA Equity MW 932/1 1,000 Management Million m3 Million m3 MW MW Volume ▪ Vietnam’s Total Water Supply and Wastewater 17 36 ▪ Secured PPA Equity MW
Slide 39: Q&A
Q&A 39 39
Slide 40: 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 40 40
Slide 41: Appendix
III. OPERATING PERFORMANCE IV. FINANCIAL PERFORMANCE V. BUSINESS UPDATE VI. APPENDIX COMPANY INFORMATION COMPANY PERFORMANCE SUSTAINABILITY DEVELOPMENT 41 41
Slide 42: Vision and Mission
VI.APPENDIX: COMPANY INFORMATION 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 fit
Slide 43: Utilities Business – Strong Customer Base
VI.APPENDIX: COMPANY INFORMATION UTILITIES BUSINESS – STRONG CUSTOMER BASE WHAUP’s has established the strong operation in EEC area 83% of WHAUP’s volume are distributed to heavy industry. 6M’24 Volume by IEs 6M’24 Volume by Industry Petrochemical Others 37% 12% Consumer 7% 5% WHA SIL 12% ESIE 47% S
Slide 44: Power Business – Portfolio Breakdown as of 30 June 2024
VI.APPENDIX: COMPANY INFORMATION POWER BUSINESS – PORTFOLIO BREAKDOWN AS OF 30 JUNE 2024 Installed Project Name Type JV Partner Location WHAUP Portion Equity MW COD Capacities (MW) Operating Phase Gheco-I IPP Coal Glow Map Ta Phut IE 660 35.00% 231 Q3’12 Glow IPP IPP Gas Combined Cycle Glow WHA CIE
Slide 45: Shareholder and Management Structure
VI.APPENDIX: COMPANY INFORMATION SHAREHOLDER AND MANAGEMENT STRUCTURE Shareholding Structure Board of Directors Ms. Jareeporn Jarukornsakul Mr. Weidt Nuchjalearn Foreign Independent Director and Retail Chairman of Board of Directors Institutions Chairman of Audit Committee 2.0% 17.8% Domestic Mr. Ek
Slide 46: Vietnam Utilities Business – SDWTP Sales Volume
VI.APPENDIX: COMPANY PERFORMANCE VIETNAM UTILITIES BUSINESS – SDWTP SALES VOLUME (BASE ON 34% SHAREHOLDING) 3M 6M Unit: Million M3 +5% +10% +13% 16.6 14.7 8.7 8.3 7.9 Q2'23 Q2'24 Q1'24 6M'23 6M'24 SDWTP Q2’24 (A) Q1’24 (A) Q2’23 (A) ▪ 5% YoY volume increase in Q2’24 and 13% YoY increase in 6M’24 are
Slide 47: Utilities Business – Domestics Revenue and Gross Profit Margin
VI.APPENDIX: COMPANY PERFORMANCE UTILITIES BUSINESS – DOMESTICS REVENUE AND GROSS PROFIT MARGIN Total Revenue Gross Profit Margin Unit: MB +2% -9% -1% 1,185.3 1,214.3 44.2 147.5 153.2 48.5% 44.9% 45.8% 48.1% 97.8 96.8 42.5% 85.4 47.1% 44.8% 44.2% 42.8% 663.1 284.0 42.2% 259.7 611.1 603.7 109.8 4.6 3
Slide 48: Profit and Loss Statement – Q2'24 vs Q2'23
VI.APPENDIX: COMPANY PERFORMANCE PROFIT AND LOSS STATEMENT – Q2’24 (A) vs Q2’23 (A) Normalized Net Profit (NNP) Q2’24 (A) = 310.2 MB, -108.8 MB or -26.0% vs Q2’23 (A) + Positive 1• Higher Gain from revaluation of investment on GIPP (+5.4 MB) - Negative 1• Lower Normalized Share of Profit (-49.8MB) :
Slide 49: Profit and Loss Statement – 6M'24 vs 6M'23
VI.APPENDIX: COMPANY PERFORMANCE PROFIT AND LOSS STATEMENT – 6M’24 (A) vs 6M’23 (A) Normalized Net Profit (NNP) 6M’24 = 682.0 MB, +34.0 MB or +5.3% vs 6M’23 + Positive 1• Higher Normalized Share of Profit (+56.4 MB): mainly due to SDWTP (+51.8 MB), and SPP (+15.8 MB) 2• Higher Other Income (+41.8 MB
Slide 50: Balance Sheet – As of 30 June 2024
VI.APPENDIX: COMPANY PERFORMANCE BALANCE SHEET – AS OF 30 JUNE 2024 Total Asset Liabilities and Equity Unit : MB Unit : MB 29,817 30,362 29,817 549 30,362 90 598 Cash = 1,295 (143) Cash = 1,153 (4) TL = 16,250 TL = 16,800 Investment Investment = 14,961 = 15,051 Others Others TE = 13,567 TE = 13,563
Slide 51: Historical Dividend Payment
VI.APPENDIX: COMPANY PERFORMANCE HISTORICAL DIVIDEND PAYMENT 0.30 0.2525 0.2525 0.2525 0.2525 0.25 0.2034 0.2115 0.20 0.1600 0.1600 0.1600 0.1600 0.15 0.1925 0.10 0.2034 0.2115 0.1000 0.05 0.0925 0.0925 0.0925 0.0600 0.0600 0.00 2017 2018 2019 2020 2021 2022 2023 Interim Dividend Additional Dividend
Slide 52: WHAUP Waste Management Initiatives: Impactful Results 2023
VI.APPENDIX: SUSTAINABILITY DEVELOPMENT WHAUP WASTE MANAGEMENT INITINATIVES: IMPECTFUL RESULTS 2023 WASTE TO ENERGY SLUDGE TO SOIL NUTRIENT HAZARDOUS CHEMICAL REDUCE DEPENDENCY CONTAINER REDUCTION ON PLASTICS WHAUP and WHA Group have been actively reducing single-use plastic since WHAUP has transiti
Slide 53: WHAUP Energy Initiatives: Impactful Results 2023
VI.APPENDIX: SUSTAINABILITY DEVELOPMENT WHAUP ENERGY INITINATIVES: IMPECTFUL RESULTS 2023 ENERGY SAVING IN OUR OPERATIONS ENERGY SAVING IN ENERGY SAVING IN OFFICE SOLAR ENERGY PROJECT WITHIN WHAUP’S BATTERY ENERGY STORAGE INDUSTRIAL ESTATES BUILDINGS OPERATIONAL AREA SYSTEM:BESS WHAUP participated i
Slide 54: WHAUP Governance Management
VI.APPENDIX: SUSTAINABILITY DEVELOPMENT WHAUP GOVERNANCE MANAGEMENT The Board of Directors’ structure five sub-Committees. Corporate Governance and Sustainable Nomination and Remuneration Audit Committee Development Committee Committee 2 Non- 2 Independe nt directors Independe nt directors 1 executi
Slide 55: WHAUP Governance Management (Cont'd)
VI.APPENDIX: SUSTAINABILITY DEVELOPMENT WHAUP GOVERNANCE MANAGEMENT (CONT’D) Corporate Governance Performance “Effective corporate governance drives sustainable shareholder value and fosters stakeholder trust Excellent CGR Scoring AGM Scoring CG Policy and the Code of Conduct 5 Stars 100% scoring 10
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