WHA Utilities and Power Public Company Limited · SET:WHAUP
WHA Utilities and Power Public — Q2 2023 Earnings Presentation
58 slides from WHA Utilities and Power Public's earnings presentation, Aug 17, 2023
Slide 1: Q2'2023 Analyst Meeting
Q2’2023 Analyst Meeting WHA Utilities and Power Public Company Limited 17 August 2023
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: Company Overview
I Company Overview Executive Summary II 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 provider and investor with strategic partnership with industrial estates with a concrete plan to capture increasing leading Thai and international po
Slide 5: 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 11 operating IEs located in Thailand and 1 IE (WHA Industrial Zone 1, Nghe
Slide 6: Power Business – Portfolio Breakdown
I. Company Overview Power Business – Portfolio Breakdown Total Capacity (717 MW eq) : 654 MW eq under Operation + 63 MW eq under development By Type By Type Portfolio Analysis 3% 0.4% Gas (41%, 297 eq MW) 24% Conventional 23% Coal (32%, 231 eq MW) Total Total 41% Solar (23%, 167 eq MW)* Renewable 71
Slide 7: Agenda: Executive Summary
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 7
Slide 8: Key Highlights
II. Executive Summary Key Highlights Unit : MB % change % change Q2’22 Q1’23 Q2’23 6M’22 6M’23 YoY QoQ YoY Revenue, Normalized Share of Profit and 1) 836.6 813.3 1,063.7 27% 31% 1,444.6 1,877.0 30% Dividend Income 1.1 Revenue 616.0 639.7 789.9 28% 23% 1,191.4 1,429.6 20% - Utilities Business/1 555.9
Slide 9: Agenda: Operating Performance
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 9
Slide 10: Utilities Business - Total Sales and Management Volume
III. Operating Performance Utilities Business - Total Sales and Management Volume* 3M 6M Unit : Million M3 +3% +16% +0.3% 75.1 75.3 39.4 40.5 34.8 12.8 15.3 7.0 8.6 6.7 19.4 9.9 18.5 9.7 8.8 2.5 2.9 1.3 1.4 62.3 31.9 1.5 60.1 32.4 28.2 26.2 13.3 Domestic 11.8 Domestic Domestic 23.0 Domestic 11.2 Dom
Slide 11: Power Business - IPP Group
II. Operating Performance Power Business - IPP Group Q2’23 vs Q2’22 GHECO-One • No energy dispatch due to reserved shutdown since 10 Mar 2023 (vs Unplanned maintenance outage 14 days (6 - 19 Apr’22) in Q2’22) • Higher availability factor at 100% GIPP • EGAT dispatched GIPP of 116 GWh in Q2’23 (vs 32
Slide 12: Power Business - IPP Group
II. Operating Performance Power Business - IPP Group 3M Q2’22 (A) Q2’22 (A) Q2’23 (A) Q2’23 (A) Unit : GWh Energy Dispatch Q1’23 (A) Unit : % AF Availability Q1’23 (A) -100% -100% 100% -5% +42% +263% +47% 100% 1,213 84% 97% 97% 138 131 116 92 40% 79 202 32 0 Gheco-One HHPC Glow IPP Gheco-One Glow IP
Slide 13: Power Business - SPP Group
II. Operating Performance Power Business - SPP Group Q2’23 vs Q2’22 • Total dispatch dropped by -1.2% YoY due to +1.1% YoY higher EGAT dispatch but -7.28% YoY IU dispatch. • GNLL has lower dispatch to EGAT by -21% due to postpone maintenance from March 23 to April 23 (23 days). 6M’23 vs 6M’22 • Tota
Slide 14: Power Business - SPP Group
II. Operating Performance Power Business - SPP Group 3M Q2’22 (A) Q2’22 (A) Q2’23 (A) Q2’23 (A) Unit : GWh Energy Dispatch Q1’23 (A) Unit : % AF Availability Q1’23 (A) -8% +0.6% +1% +3% 98.1% 1,670 1,650 1,612 1,238 1,251 1,216 -8% +0.6% 95.6% 95.0% 432 398 396 EGAT 1 IU 2 Total Total 1 + SPP Busine
Slide 15: Power Business - Solar Energy Dispatch
II. Operating Performance Power Business - Solar Energy Dispatch Power Dispatch : Solar energy dispatch continued to increase in accordance with capacity under operation (61.6 MW as of Q2’22 vs 104.1 MW as of Q2’23) 3M 6M Unit : GWh Unit : GWh +50% +11% +47% 54.3 2.3 28.6 1.2 25.7 1.0 36.9 2.0 19.1
Slide 16: Agenda: Financial Performance
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 16
Slide 17: Financial Highlight Q2'23 vs Q2'22
IV. Financial Performance Financial Highlight Q2’23 vs Q2’22 Q2’22 Q2’23 YoY Remarks Unit: THB mm 1. Total Revenue, NSOP and 836.6 1,063.7 27% Dividend Income 1.1 Total Revenue 616.0 789.9 28% - Growth in domestic utilities revenue mainly due to an increase of water tariff adjustment and higher Init
Slide 18: Financial Highlight 6M'23 vs 6M'22
IV. Financial Performance Financial Highlight 6M’23 vs 6M’22 6M’22 6M’23 YTD Remarks Unit: THB mm 1. Total Revenue, NSOP and 1,444.6 1,877.0 30% Dividend Income 1.1 Total Revenue 1,191.4 1,429.6 20% - Higher revenue from domestic utilities due to an increased - Utilities Business 1,068.3 1,186.2 11%
Slide 19: Power Business – Normalized Share of Profit and Dividend Income
IV. Financial Performance /1 Power Business – Normalized Share of Profit and Dividend Income Normalized Share of Profit and Dividend income increased by 12% YoY in Q2’23 and 48% YoY in 6M’23. 3M 6M Unit: THB mm +12% +45% +48% 465.3 17.8 - 6.9 2.4 315.1 - 25.0 14.6 275.6 1.6 1.0 396.9 246.7 9.1 7.4 -
Slide 20: IU Gas Spread of SPP Business
IV. Financial Performance IU Gas Spread of SPP Business IU Tariff vs Gas Cost (THB/kWh) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 (F) (F) Avg. total tariff Gas cost 17 Aug 2023 20
Slide 21: Utilities Business: Normalized Share of Profit (Vietnam) SDWTP
IV. Financial Performance Utilities Business : Normalized Share of Profit (Vietnam) Unit : MB SDWTP 3M 6M Q2'22 Q2'23 Q1'23 6M'22 6M'23 6.1 8.5 +115.2% (2.4) YoY (18.4) +156.0% +455% YoY (9.3) QoQ (15.2) (9.0) (40.1) (12.3) (11.4) (0.8) (9.5) (18.6) (24.7) (58.7) +97% +93% +79% Share of profit excl.
Slide 22: Capital Structure and Financial Ratio
IV. IV. Financial Performance Financial Performance Capital Structure and Financial Ratio Statement of Financial Position Debt Maturity Profile as of 30 June 2023 Unit : THB mm Unit : THB mm 3,700 Average cost of debt of 2.96% 3,050 3,120 30,297 30,297 27,645 27,645 15,708 13,500 3,000 1,750 1,500 1
Slide 23: Financial Activities
IV. Financial Performance Financial Activities New Bonds No.2/2023 Tranch I Tranch II Plain Vanilla Bond Green Bond Issue size THB 3,000 MB. Issue size THB 500 MB. Maturity & 3 Yr. / 3.26% p.a. Maturity & 5 Yr. / 3.55% p.a. Coupon Semi-annual Coupon Semi-annual Offering to II/ HNW Offering to II/ HN
Slide 24: Agenda: Business Update
I Company Overview Executive Summary II III Operating Performance IV Financial Performance V Business Update VI Appendix Your Ultimate Solution Partner in Utilities & Power with Environmental Care 24
Slide 25: Utilities & Power Business – Our Plan & Beyond 2023
V. Business Update Utilities & Power Business – Our Plan & Beyond 2023 UTILITIES BUSINESS POWER BUSINESS Grow with Industrial Estate Development Enlarge Domestic Portfolio with (Both Central utilities and Value-added Products) Focusing on Clean Energy e.g., Solar & Wind Farm, Waste-to-Energy Power O
Slide 26: Utilities Business – Projects update
V. Business Update Utilities Business – Projects update Continue to Grow along with WHA Industrial Estates Stared constructing new water treatment and wastewater treatment facilities at WHA Projects update IER Total plant capacity: • water = 3.0 mm3/year, wastewater = 1.9 mm3/year. Expected completi
Slide 27: Power Business – Enlarging Renewables Portfolio
V. Business Update Power Business – Enlarging Renewables Portfolio Selected Projects Signed in Q2’23 Cumulative Signed Renewable Energy PPA 300 MW 2023(F) Aisin Powertrain Capacity 3.3 MW 170 MW Q2’23(A) 136 MW 95 MW 2022(A) 2021(A) BMW Capacity 1.6 MW 19 New Solar Private PPA signed in Q2’23 with a
Slide 28: Power Business – Enlarging Renewables Portfolio (Cont'd)
V. Business Update Power Business – Enlarging Renewables Portfolio (Cont’d) Selected Projects Commissioning in 2023 Mega Bangna Winthai Food Harley Davison Samut Prakan Samut Prakan Rayong Capacity 9.9 MW Capacity 3.7 MW Capacity 1.0 MW COD Q2’23 COD Q3’23 COD Q4’23 3 Projects commissioned in Q2’23
Slide 29: Q&A
Q&A 29
Slide 30: 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 30
Slide 31: Appendix: Company Information
III Operating Performance IV Financial Performance V Business Update VI Appendix > Company Information > Company Performance > Sustainability Development Your Ultimate Solution Partner in Utilities & Power with Environmental Care 31
Slide 32: Vision and Mission
VI. Appendix: Company Information “To be Asia's leader in Utilities and Power providing total solutions to VISION partners with good corporate governance as well as environmentally and socially friendly operations” • To develop world class utilities and power solutions fitting customer's needs • To
Slide 33: 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 34: 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’23 Volume by IEs 6M’23 Volume by Industry Petrochemical Others 38% 12% Consumer 9% WHA SIL 6% 13% ESIE 5%
Slide 35: Power Business – Portfolio Breakdown
VI. Appendix: Company Information Power Business – Portfolio Breakdown Portfolio Summary Installed WHAUP Equity Project Name Type JV Partner Location Capacities COD Portion MW (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 36: Shareholders and Management Structure
VI. Appendix: Company Information Shareholders and Management Structure Shareholding Structure Board of Directors Foreign Retail Ms. Jareeporn Jarukornsakul Mr. Weidt Nuchjalearn Institutions 19.9% Chairman of Board of Directors Independent Director and Chairman of Audit Committee 1.5% Domestic WHA
Slide 37: Financial Highlight Q2'23 vs Q1'23
VI. Appendix: Company Performance Financial Highlight Q2’23 vs Q1’23 Q1’23 Q2’23 QoQ Remarks Unit: THB mm 1. Total Revenue, NSOP and 813.3 1,063.7 31% Dividend Income 1.1 Total Revenue 639.7 789.9 23% - Growth in domestic utilities revenue mainly due to higher - Utilities Business 522.5 663.7 27% In
Slide 38: Vietnam Utilities Business - SDWTP Sales Volume
VI. Appendix: Company Performance Vietnam Utilities Business - SDWTP Sales Volume ( Based on 34% Shareholding) 3M 6M +20% Unit: Million M3 +23% +28% 15.3 12.8 8.6 7.0 6.7 Q2'22 Q2'23 Q1'23 6M'22 6M'23 Q2’23 90% Utilization Rate ▪ 23% YoY volume increase in Q2’23 and 20% YoY volume increase in 6M’23
Slide 39: 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 19% YoY in Q2’23 and 11% YoY in 6M’23 Total Revenue Gross Profit Margin Unit : THB mm +11% 1,186.2 50.2% 1,068.3 45.8% 25.3 147.5 44.9% 42.5% 8
Slide 40: Profit and Loss Statement – Q2'23 vs Q2'22
VI. Appendix : Company Performance Profit and Loss Statement – Q2'23 vs Q2'22 Normalized Net Profit (NNP) Q2’23 (A) Vs Q2’22 (A), +155.2 MB or +58.8% + Positive • Higher Gross Profit before Depreciation (+128.8 MB): mostly due to Utilities Business (+90.7 MB), and Solar Business (+38.1 MB) • Higher
Slide 41: Profit and Loss Statement – 6M'23 vs 6M'22
VI. Appendix : Company Performance Profit and Loss Statement – 6M'23 vs 6M'22 Normalized Net Profit (NNP) 6M’23 (A) Vs 6M’22 (A), +314.8 MB or +94.5% + Positive • Higher Normalized Share of Profit (+219.2 MB): mainly due to SPPs (+158.1 MB), Vietnam utilities business (+44.1 MB), and Gheco- One (+12
Slide 42: Balance Sheet – as of 30 June 2023
VI. Appendix : Company Performance Balance Sheet – as of 30 June 2023 Total Assets Liabilities and Equity Unit : MB Unit : MB 1,954 202 496 30,297 2,286 27,645 365 30,297 Cash = 2,675 27,645 Cash = 721 Investment Investment TL =17,310 = 14,321 = 14,523 TL = 15,024 Others Others TE = 12,987 = 12,603
Slide 43: 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 0.1600 0.15 0.2115 0.1000 0.10 0.2034 0.05 0.0925 0.0925 0.0925 0.0600 0.00 2017 2018 2019 2020 2021 2022 Interim Dividend Additional Dividend 3 March 2023 43
Slide 44: 2023 Target
VI. Appendix : Company Performance 2023 Target UTILITIES BUSINESS 6M’23 (A) 2023 Target 75 168 Total Water Supply and Wastewater Management Volume Million m3 Million m3 60 135 Thailand’s Total Water Supply and Wastewater Management Volume Million m3 Million m3 15 33 Vietnam’s Total Water Supply and
Slide 45: 5Y Financial Target (2023 – 2027)
VI. Appendix : Company Performance 5Y Financial Target (2023 – 2027) Total 5Y Revenue, Normalized share of profit and dividend Total 5Y CAPEX % EBITDA Margin income during 2023-2027 during 2023-2027 THB THB 27,000 18,500 > 50% mm mm *Total Revenue, Normalized share of profit and dividend income in Q
Slide 46: Power Business – FiT Bidding Results
VI. Appendix : Company Performance Power Business – FiT Bidding Results Power Business-Fit Bidding Results Our 5 Solar farm projects with total installed capacity of 125 MW equity were awarded by ERC on 5 April 2023. SCOD in year 2029 - 2030. No. Type Location Installed Capacity (MW equity) 1. SPP +
Slide 47: Sustainability Highlight
VI. Appendix : Sustainability Development Sustainability Highlight Wastewater Management Projects Solar Rooftop Projects CSR Projects WHAUP has provided Wastewater treatment services to manufacturers Offers an all-in solar rooftop service package WHAUP has social responsibility strategy and and oper
Slide 48: Sustainability Highlight (Cont'd)
VI. Appendix : Sustainability Development 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 31,599 Avoided CO2 Emission offsetting
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: 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 51: Sustainability Development Highlight: Environment Dimension
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: Sustainability Development Highlight: Social Dimension
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 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 54: Sustainability Development Highlight: Governance and Economic Dimension
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: Risk Management and Code of Business 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 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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