Ratch Group Public Co. Ltd. · SET:RATCH
Ratch Group Public — Ratchaburi Electricity Generating Holding PCL — Non-Deal Roadshow (July 2011)
52 slides from Ratch Group Public's roadshow presentation, Jul 4, 2011
Slide 1: Sustainable Growth in a Changing Global Setting
RATCHABURI ELECTRICITY GENERATING HOLDING PCL. Thailand Sustainable Growth in a Changing Global Setting 4-8 July 2011
Slide 2: RATCH Overview, Highlights, Acquisition of TSI
• RATCH Overview • Highlights • Acquisition Of TSI
Slide 3: RATCH Overview
RATCH Overview
Slide 4: RATCH background and establishment
• In February 1999 the Thai Cabinet approved private participation on the EGAT Ratchaburi power plant with generating capacity of 3,645 MW, the single largest power plant in Thailand. • The private participation plan involves the creation of the Ratchaburi Electricity Generating Holding Company Limi
Slide 5: Ratchaburi Electricity Generating Holding PCL group structure
Ratchaburi Electricity Generating Holding PCL. 100 % 100 % 100 % 33.33 % 100% 49% 100 % 100% 37.5% 40% 10% 100% 25% 3,645 MW 16 78 MW 16.78 110 MW RH International Nam Ngum 3 Ratchaburi Electricity SouthEast Asia Energy Ratchaburi Energy Solar Power 40% RATCH-LAO Corporation Limited Power Generating
Slide 6: Domestic and international power generation investments
Domestic Lao PDR International Power Generation Renewable Energy Power Generation Investments in Power Generation RATCHGEN Khao Kor Wind Power Nam Ngum 2 Power RATCH-Australia Corporation Ti E Tri Energy H Hongsa P Power Solarta Ratchaburi Power Nam Ngum 3 Power SPP VSPP Related Business Ratchaburi
Slide 7: RATCH is the biggest generator after EGAT and largest IPP
RATCH is the Biggest generator after EGAT and the Largest IPP in Thailand Thailand’s Total Installed Capacity: 31,699 MW. SPPs 2,182 MW Foreign Purchase Other 8 IPPs 2,049 MW 7,971 MW TECO CO 350 MW RATCH RG 4,499 MW 3,645 MW RPCL 350 MW NN2 154 MW EGAT 14,998 MW Oth 8 IPPs Other IPP consisted i t d
Slide 8: Major Shareholders and Foreign Shareholder
As at March 2, 2011 Major Shareholders Foreign Shareholder Thailife Company 25.00% 23.59% Limited 0.93% 20.00% The Bank of Minor New York Shareholders Group 23.77% 14.34% EGAT 15 00% 15.00% 14 07% 14.07% 1.19% 45.00% 12.17% 12.05% Thai NVDR 1.40% 10.00% Government Saving Bank Bongkok Life F d Fund A
Slide 9: Stable dividends payment
Stable dividends payment – RATCH has a dividend policy of no less than 40% 2.25 2.25 Baht per Share 2.10 2.20 2.00 00 2.10 (48.41%) (62.51%) 2 40 2.40 2.00 2 00 (52 24%) (52.24%) (49 13%) (49.13%) (50.32%) (51.14%) 1.75 (47.06%) 2.00 (49.24%) 1.50 (48.42%) 1 15 1.15 1 15 1.15 1 10 1.10 1.60 1.00 1.1
Slide 10: Highlights
Highlights g g
Slide 11: 2011 Power Consumption and key events
2011 Power Consumption • Peak generation was 23,900 MW in May, decreased 0.46% yoy • Total energy generation has decreased 2.13% yoy Event Investment in SPP Cogeneration g Projects j : Awarded three new SPP p projects j with total capacity p y of 350 MW One project of the Nava Nakhon Electricity G
Slide 12: Project Progress and Financial Highlights
Project Progress : Signed Share Purchase Agreement & Shareholder Agreement Solarta Power Project j on 13 January 2011 Hongsa Power Project : Signed O&M Agreement on 23 February 2011 : Signed Share Purchase Agreement & Shareholder Agreement Ratchaburi World Cogeneration (SPP) on 15 March 2011 Num Ngu
Slide 13: 2011 Projects in Operation and pipeline
Total Projects 2011 Projects in Operation 6,323 MW 7,000 Company Effective RATCH’s 6,000 4,518 MW Shareholding Capacity Stake 5,000 4 000 4,000 3,000 1,805 MW RATCHGEN 100.00% 3,645 MW 2,000 In Thailand 174 MW 1,000 In Australia 632 MW 0 In Laos 999 MW TECO 50.00% 350 MW In Operation 2011 In Pipelin
Slide 14: Strong Balance Sheet and financial ratios
Strong Balance Sheet Unit : in Million Baht Financial Ratio 1Q11 1Q10 2010 2009 69,342 69,446 68,656 Current Ratio (times) 1 90 1.90 2 04 2.04 2 00 2.00 2.41 Cash & S/T Investment Interest Bearing Debt ROE (%) 2.56 3.29 11.46 15.77 Other Liabilities Other Asset ROA (%) 1 73 1.73 2 09 2.09 7 52 7.52
Slide 15: Annexure
ANNEXURE
Slide 16: 1Q11 vs 1Q10 income statement
Unit : in Million Baht 1Q11 1Q10 Diff % Revenues 8,497.20 10,360.54 (1,863.34) (17.98) Cost & Expenses 6,659.54 8,544.26 (1,884.72) (22.06) EBIT 1,837.66 1,816.28 21.38 1.18 Finance costs 170.78 169.48 1.30 0.77 Income tax expense 472.02 186.44 285.58 153.18 Profit for the period 1,194.86 1,460.36 (
Slide 17: Revenue breakdown 1Q11 vs 1Q10
Unit : in Million Baht Unit : in Million Baht 1Q11 1Q10 Diff % Net Sales 8 101 22 8,101.22 9 881 83 9,881.83 (1 780 61) (1,780.61) (18 02) (18.02) AP 3,160.05 2,723.72 436.33 16.02 EP – Fuel 4,882.30 7,124.97 (2,242.67) (31.48) -VOM 58.87 33.14 25.73 77.64 Share of profit from jointly-controlled ent
Slide 18: Cost and expenses 1Q11 vs 1Q10
Unit : in Million Baht 1Q11 1Q10 Diff % Cost of Sale and rendering of services 6,202.49 8,354.17 (2,151.68) (25.76) - Fuel 4 859 43 4,859.43 7 037 28 7,037.28 (2 177 85) (2,177.85) (30 95) (30.95) - VOM 49.97 32.92 17.05 51.79 - Rendering of services - RL 17.75 2.59 15.16 n.a. - Other 1,275.34 1,281
Slide 19: Q1/2011 RATCH portion of loans
Unit : in Million Baht As at March 2011 Q1/2011 RATCH P Portion ti Milli Baht Million B ht Milli USD Million RATCHGEN 100% 16,110 - TECO 50% - 21.49 RPCL 25% 1,259.44 93.17 SEAN 25% 3,813.25 45 Maturity Year RATCHGEN 2015 TECO 2013 RPCL 2020 SEAN 2022 Page 19
Slide 20: Projects in operation and pipeline
Location Effective Total Capacity RATCH’s Capacity Stake Shareholding (MW.) (MW.) Projects in Operation (in Thailand) Ratchaburi Power Plant (RATCHGEN) Ratchaburi Province 100.00% 3,645 3,645 As of 2011 Tri Energy Power Plant (TECO) Ratchaburi Province 50.00% 700 350 4,518 MW Ratchaburi Power Plant
Slide 21: Related business investments
Effective Business Shareholding In Thailand Chubu Ratchaburi Electric Services Co., Ltd 49.99% Operation & Maintenance Services to Ratchaburi Power Company Limited’s plant for 14 years, since June 2008 (Initial operation date-IOD) EGAT Diamond Service Co., Ltd 10.00% Provide Gas Turbines maintenance
Slide 22: Ratchaburi Power Plant (RATCHGEN)
Ratchaburi Power Plant (RATCHGEN) Project Summary Shareholders’ Structure Location : Ratchaburi Province Technology : Thermal & Combined Cycle RATCH Total Capacity : 3,645 MW. Contributed capacity 3,645 MW. (100%) to RATCH: 100% PPA : 25 Years (Remaining:14 Years) COD : TH#1-2 - Oct 2000, CCGT #1-2
Slide 23: Tri Energy Power Plant (TECO)
Tri Energy Power Plant (TECO) Project Summary Shareholders’ Structure Location : Ratchaburi Province T h l Technology : C bi d C Combined Cycle l RATCH Total Capacity : 700 MW. Contributed capacity 350 MW. (50%) 100% to RATCH: PPA : 20 Years (Remaining:9 Years) Chevron Thailand RGAS Energy Company I
Slide 24: Ratchaburi Power Plant (RPCL)
Ratchaburi Power Plant (RPCL) Project Summary Shareholders’ Structure Location : Ratchaburi Province Technology : Combined Cycle RATCH Total Capacity : 1,400 MW. Contributed capacity 350 MW. (25%) 100% to RATCH: PPA : 25 Years (Remaining: 22 Year) 25% Ratch Udom Power HK Electric COD : CCGT #1 –Marc
Slide 25: Pratu Tao-A
Pratu Tao-A Pt t Tao-A Ptatu T A Shareholders’ Structure Location : Sukhothai Province Technology : Gas Engine RATCH Total Capacity : 1.75 MW. Contributed capacity to RATCH: 1.75 MW. (100%) 100% PPA : 5 Years Y (Automatic Renewal) Ratchaburi COD : June 2007 Energy 100% Investment Amount (for RATCH)
Slide 26: Nam Ngum 2 Hydroelectric Power Plant
Num Ngum 2 Hydroelectric Power Plant Projects Summary Shareholders’ Structure Location : Lao PDR 33.3% RATCH Technology : Hydro Power Plant 38% Total Capacity : 615 MW. (3x205 MW.) C.H Karnchang Contributed capacity to RATCH: 153.75 MW. (25%) 16.7% PPA : 27 Years 75% SouthEast B Bangkok k kEExpressw
Slide 27: Solarta Power Project
Solarta Power Project Projects Summary Project Progress • Signed Share Purchase Agreement and Shareholders Agreement Location : Ayutthaya Province with Yanhee Power Holding on January 13, 2011 Suphan Buri Province Nakon Pathom Province Technology : Solar Power Generation Shareholders’ Structure Tota
Slide 28: Hongsa Power Project
Hongsa Power Project Projects Summary Project Progress • Signed the Shareholder Agreement on February 5, 2009 for the Location : Lao PDR establishment of Hongsa Power Co., Ltd. and Phu Fai Mining to operate Hongsa Power Plant Project Technology : Lignite-Fired Power Plant • Signed Tariff MOU with EG
Slide 29: Sao Thian-A
Sao Thian-A Projects Summary Project Progress Sao Thian-A oil field • Gas Sales Agreement signed with PTTEP and PTTEP Siam Location : Sukhothai Province Limited on 29 June 2011 Technology : Gas Engine • Under Construction Total installed Capacity : 3.6 MW Shareholders’ Structure Contributed capacity
Slide 30: Khao Kor Wind Farm Project
Khao Kor Wind Farm Project Project Summary Project Progress • MOU signed on December 3, 2008 Location : Phetchabun Province • Share Purchase Agreement & Shareholder Agreement signed on February 18, 18 2009 Technology : Wind Turbine Generator • Preparing RFP for lenders Total Capacity : 60 MW. • Turb
Slide 31: Ratchaburi World Cogeneration (RW Cogen)
Ratchaburi World Cogeneration (RW Cogen) Project Summary P j t Progress Project P • Share Purchase Agreement and the Shareholders Agreement Location : Ratchaburi Industrial signed on March 15, 2011 Estate, Ratchaburi Province Province. 40% Technology : Cogeneration RATCH Total Capacity : 110 MW (2x1
Slide 32: Nava Nakhon Electricity Generating (NNEG)
Nava Nakhon Electricity Generating (NNEG) Project Summary Project j Progress g • Share Purchase Agreement and the Shareholders Agreement Location : Nava Nakorn Industrial signed on May 30, 2011 Promotion Zone, Pathumthani Province 40% RATCH Technology : Cogeneration 30% PTT NNEG Total Capacity : 130
Slide 33: Nam Ngum 3 Project
Num Ngum 3 Project Projects Summary P j t Progress Project P • Shareholder Agreement signed with GMS Lao Co.,Ltd., Location : Lao PDR Marubeni Corporation and Lao Holding State Enterprise on May 13, 2008 Technology : Hydro Power Plant • Signed Tariff MOU with EGAT on March 11, 2010 Total Capacity :
Slide 34: Xe Pian - Xe Namnoy Project
Xe Pian - Xe Namnoy Project Projects Summary Project Progress • Joint Development Agreement signed with SK Engineering & Location : Lao PDR Construction and Korean Western Power on August 6, 2007 T h l Technology : H d P Hydro Power Pl Plantt • Project Development Agreement signed with the governmen
Slide 35: Nam Bak Project
Nam Bak Project Projects Summary Project Progress Location : Lao PDR • Tariff proposal sent to EGAT Technology : Hydro Power Plant Total Capacity : 160 MW. Contributed capacity to RATCH: 40 MW. (25%) PPA : n.a. IOD : n.a. COD : I 2017 In Project Cost : n.a. Debt to Equity : 70:30 times Lender : n.a.
Slide 36: Planned Outage at Ratchaburi Power Plant in 2011
Actual Outage Planned Outage at Ratchaburi Power Plant in 2011 Planned Outage Plant Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec RG CCST-10 MI 12 6 CCGT-11 CI 23 6 CCGT-12 CI 23 6 MI RG CCST-20 13 7 CCGT-21 CI 24 7 CCGT-22 CI 24 7 RG CCST-30 MI 20 8 MI CCGT-31 20 24 20 21 CCGT-32 10 24 10 21 The
Slide 37: Planned Outage at Ratchaburi Power Plant in 2010
Actual Outage Planned Outage at Ratchaburi Power Plant in 2010 Planned Outage Plant Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec RG CCST-10 CI CI CCGT-11 11 3 6 20 CCGT-12 CI CI 6 20 11 2 RG CCST-20 MI CCGT-21 MI 27 25 25 1 MI CCGT-22 MI 25 25 15 1 RG CCST-30 CI CCGT-31 23 4 27 10 CCGT-32 23 4 2
Slide 38: Thai power industry structure
National Energy Policy Council Mi i t off Energy Ministry E EPPO 1 Power Purchase Generation EGAT IPPs SPPs VSPPs From Abroad Regulator R Transmission EGAT Transmission Di t ib ti Distribution PEA2 MEA3 End Users Direct Customers Source: Ministry of Energy and EGAT Note: 1.Energy Policy and Planning
Slide 39: Monthly Revenue = Availability Payment + Energy Payment
• The PPA Tariff has two main components to cover fixed and variable generation costs called Availability Payments (“AP”) & Energy Payments (“EP”) respectively Monthly Revenue = Availability Payment + Energy Payment Availability Payment Covers Energy Payment Covers • Debt financing cost ; Principal
Slide 40: Monthly Peak Generation and Energy Generation
In 2010, Monthly Peak Generation Peak generation was 24,010 MW in May, increased 8.91%yoy. 2007 2008 2009 2010 2011 In 2011, 26,000 , Peak generation was 23,900 MW in May, decreased 0.46%yoy. Peak Generation 24,000 Year Increase (Decrease ) MW. 22,000 MW. % 2011 , 23,900 ((110)) ((0.46)) 20 000 20,0
Slide 41: Power development and demand forecast
Source: Energy Policy and Planning Office, December 2010 Page 41
Slide 42: Acquisition of TSI
Acquisition q Of TSI
Slide 43: Solid growth opportunities across the Asian region
Solid growth opportunities across the Asian region Access to strong electricity demand growth in regulatory environment of Australia. Australia To expand a strategic business in Australia as an operator. To strengthen the company's core business and related business in energy with TSE, a world
Slide 44: Large scale entry into Australian market
Large Scale entry • Give RATCH access to a portfolio of over 1,125.6 MW of generation assets into Australian • Positive Australian energy industry outlook Market • Well regulated g market with revenue from secured contracts Immediate stable • Provide RATCH immediate cash inflows during the construct
Slide 45: Portfolio of generation and wind assets
Portfolio of generation and wind assets: TSI GAS Coal Wind • Townsville • Loy Yang A • Starfish Hill • Kemerton • Collinsville • Windy Hill • BP Kwinana • Toora Asset Ownership Capacity Equity MW Type Fuel PPA Expiry Townsville 100% 234MW 234MW Base Gas 2025 K Kemerton t 100% 300MW 300MW P k Peak G
Slide 46: TSI asset locations by state
Windy Hill TSI Equity Capacity Equity Capacity Fuel BP Kwinana 100% 12MW 12MW Wind Townsville TSI Equity Capacity Equity Capacity Fuel TSI Equity Capacity Equity Capacity Fuel 100% 234MW 234MW Gas 30% 118MW 35MW Gas Collinsville Kemerton QLD WA SA NSW TSI Equity Capacity Equity Capacity Fuel TSI Equ
Slide 47: TSI Fund portfolio diversified by fuel type, operations and geography
TSI Fund has a portfolio of high quality power assets, diversified by fuel type, operations and geography Note: Figures are based on HY11 EBITDA contribution Source : www.tsinfrastructurefund.com Page 47
Slide 48: Majority of portfolio underpinned by long term PPAs
Majority of portfolio underpinned by long term Power Purchase Agreement (PPA) contracts Weighted average remaining contract life of 12 years* Years Operating Life FY11 Revenue Starfish Hill Uncontracted Windy Hill 8% T Toora Townsville Kemerton Collinsville BP Kwinana Loy Yang 5 10 15 20 25 30 3
Slide 49: TSI Fund gas portfolio
The TSI Fund gas portfolio consists of three operating gas power stations with total generation capacity of 652MW BP Kwinana Power Station Kemerton Power Station Townsville Power Station • Located in Western Australia • Located in Western Australia • Located in North Queensland • 118MW co-generation
Slide 50: TSI Fund coal portfolio
The TSI Fund coal portfolio consists of two operating coal power stations with total generation capacity of 2,380MW Collinsville Power Station Loy Yang A Power Station • Located in Queensland • Located in Victoria, Loy Yang A (LYA) currently sells its output into the National Electricity Market (NEM
Slide 51: TSI Fund wind portfolio
The TSI Fund wind portfolio consists of three operating wind farms with total generation capacity of 67.5MW Wind Farm Location Commissioned Capacity (MW) Contracting Party Expiry Date Starfish Hill South Australia 2003 34.5 Merchant - Toora Victoria 2002 21.0 gy Australia Energy 2012 Windy Hill Quee
Slide 52: Thank you
Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These view
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