WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q2 2022 Earnings Presentation
58 slides from WHA Utilities and Power Public's earnings presentation, Aug 19, 2022
Slide 1: Q2/2022 Analyst Meeting
Q2/2022 Analyst Meeting WHA Utilities and Power Public Company Limited 19 August 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 (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 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 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 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 +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 1.0 1.3 32.4 1.2 56.8 Domestic 29.9 25.7 Domestic 26.2 2
Slide 10: 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 11: 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 12: 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 13: 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 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 (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 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 Q2'22 vs Q2'21
IV. Financial Performance Financial Highlight Q2’22 vs Q2’21 Q2’21 Q2’22 YoY Remarks Unit: THB mm Total Revenue, NSOP and 780.0 827.8 6% Dividend Income Total Revenue 543.6 607.2 12% - Growth in domestic utilities sales volume mainly due to the sales volume growth in all product categories - Utiliti
Slide 17: 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 Total Revenue, NSOP and 608.0 827.8 36% Dividend Income 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 Q2’22.
Slide 18: 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 Total Revenue, NSOP and 1,554.8 1,424.8 -8% Dividend Income Total Revenue 1,147.3 1,171.6 2% - Growth in domestic utilities sales volume mainly due to higher demand from existing customers in power - Ut
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 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 20: 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 21: Profit and Loss Statement – Q2'22 vs Q2'21
IV. Financial 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 Financial Cost (+
Slide 22: Profit and Loss Statement – Q2'22 vs Q1'22
IV. Financial 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 Deprecia
Slide 23: Profit and Loss Statement – 6M'22 vs 6M'21
IV. Financial 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 (+29.9 M
Slide 24: 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 25: 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 26: 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 26
Slide 27: 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 28: 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 29: 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 30: 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 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 – Appendix
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 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/ Inst
Slide 38: Utilities Business – Strong Customer Base
VI. Appendix : Company Information 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%
Slide 39: 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 40: 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 41: Power Business - SPP Group Q2'22 vs Q2'21
VI. Appendix : Company Performance Power Business - SPP Group Q2’22 vs Q2’21 EGAT Unit : GWh Energy Dispatch IU 219 222 219 221 229 226 226 1,739 -4.0% 1,670 210 215 207 215 212 216 201 203 428 67 +0.9% 62 169 63 432 56 54 63 44 52 52 54 43 63 43 42 44 58 168 167 165 165 164 163 163 163 163 162 162
Slide 42: Power Business - SPP Group Q2'22 vs Q1'22
VI. Appendix : Company Performance Power Business - SPP Group Q2’22 vs Q1’22 EGAT Unit : GWh Energy Dispatch IU 221 222 224 229 1,662 +0.5% 1,670 210 215 203 215 217 216 201 203 199 191 191 +1.2% 427 432 67 169 63 69 52 52 54 66 60 52 51 42 44 45 41 43 58 +0.2% 163 163 162 162 161 159 158 157 157 15
Slide 43: Power Business - SPP Group (Cont'd) 6M'22 vs 6M'21
VI. Appendix : Company Performance Power Business - SPP Group (Cont’d) 6M’22 vs 6M’21 EGAT Unit : GWh Energy Dispatch IU 436 443 453 439 3,339 -0.2% 3,333 411 427 424 428 424 410 415 392 406 387 394 381 +0.6% 127 129 109 104 108 136 104 86 123 854 859 88 87 83 99 86 126 118 - 0.5% 323 305 309 314 31
Slide 44: 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 19 August 2022 44
Slide 45: IU Gas Spread of SPP Business
VI. Appendix : Company 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 *IU gas spread = Avg. IU tariff – gas cost (@ heat rate = 7,400 BTU/kWh) 19 A
Slide 46: 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 47: 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 48: 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 49: 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 50: Sustainability 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 51: Sustainability 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 52: Social Dimension: 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 53: Sustainability 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 54: 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 55: 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 56: 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 57: Governance: Risk Management and Code of 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
Slide 58: Listed in THSI SET Sustainability Index
VI. Appendix : Sustainability Development Listed in ‘THSI’ SET Sustainability Index WHAUP has been listed in 2021 Thailand Sustainability Investment (THSI) ENVIRONMENTAL Index or selected as one of the ‘Sustainable Stock’, for 2 consecutive years. This reflects the company’s potential to grow a sust
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