BGRIM: Analyst Presentation – Q2’2017 21 August 2017
BGRIM First Half of 2017 Key Highlights Strengthen Capital Strong Operating Structure Performance • Net D/E ratio 1.6x after IPO • 14% Sales growth YoY (Net Interest-bearing debt) from THB 13.6 billion to THB 15.6 billion • THB 11.5 billion project bond with • 28% EBITDA Margin 3.8% coupon rate for the first year • 13% NNP to Owner growth YoY , • USD 20 million ADB facility NNP to owner at record high and USD 235 million term sheet Delivering Project Robust Pipeline as Promised of Growth • 8 Solar Projects with total ~36 MW • COD XXHP hydro power plant Co- invest in Gov’t and Agri Coop. program in Lao in 1 Aug 17, adding 20 MW capacity • 51% growth by 2022 • 25 consecutive projects 14 projects in pipeline with diversified portfolio on-time/ on-budget with favorable target EIRR 1
Agenda BGRIM Overview Growth Strategy Q2/2017 Operating Result Project Update 2
B.Grimm is the Longest Established Infrastructure Developer in Thailand "Doing Business with Compassion for the development of civilization in harmony with nature" Values: Positivity, Pioneering Spirit, Professionalism, and Partnership • Longest established infrastructure, industrial, and healthcare group in Thailand since 1878 • Concessionaire and contractor of the largest infrastructure system in Thailand and South East Asia of the 1890s: Rangsit irrigation canals • Introducing leading engineering technologies into Thailand since the 1880s until today with Krupp, Siemens, Carl Zeiss, Merck, Voith and United Technologies 1878 1890s 1931 1994 1996 2010 July 2017 Supplied turnkey Consortium Opened Siam Built Rangsit canal Awarded first Small B.Grimm Power Installed the first systems and services Power Producer leader for reached 1,646 MW Dispensary together with telephone line (“SPP”) contract for with Siemens for BTS Airport Rail Link installed capacity Snidvongse family between sky train Amata B.Grimm Germany and Power 1 Thailand 3
BGRIM Strength in Numbers st 21 2.5 28 % Years of energy GW Total Largest SPP experiences in Generating EBITDA Margin among Thai Thailand Capacity Listed Peers Strong operating Experienced result from high 768 MW Under Highest installed Management Team efficient power plants Construction and MW with highest with good track become COD Development with number of operating record in power diversified portfolio power plants development *Remark: Information updated as of 21 Aug 2017. 4
BGRIM is Number ONE SPP among Thai Listed Power Generators BGRIM is the Largest SPP Power Generating Company among Listed Peers in Thailand Under construction and Development MW In operation MW 2500 (Installed 2,138 MW) 2000 639 1,680 1500 1,047 983 1000 1,680 480 357 680 1,499 239 500 626 567 441 0 No. of SPP power 12 8 7 5 3 plants in operation Source: IPA Advisory Limited and AWR Lloyd. (a) By Installed capacity of SPP power plants of listed power companies and B.Grimm Power only as of January 2017 5
Experienced Management Team with Strong Commitment to BGRIM B.Grimm Power’s Team Mr. Harald Link Chairman (2 4 years with B.Grimm Power) Major Shareholder Ms. Preeyanart Soontornwata President (2 1 years with B.Grimm Power) Chairperson of The Association of Private Power Producers, Thailand Mr. Sumkan Ratsameebanjongkit Dr. Surachai Saibua Senior Executive Vice President Management Committee Member Chief Operation Officer (2 1 years with B.Grimm Power) ( 4 years with B.Grimm Power) Ex-VP at Petroasia International Ex-MD at RATCH Mr. Chote Chusuwan Mr. Nopadej Karnasuta Mr. Peradach Patanachan Mr. Somkiet Pongpiyapaiboon Mr. Surasak Towanich Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Deputy Chief Operation Officer Business Development Chief Financial Officer Legal Counsel Sales and Marketing and Commercial ( 4 years with B.Grimm ( 10 years with B.Grimm Power) (2 1 years with B.Grimm Power) (2 1 years with B.Grimm Power) ( 7 years with B.Grimm Power) Power) Previously held position with Previously held positions with Previously held position with Ex-First Senior Vice Clifford Chance Cogeneration PCL (now part of Ex-Operating Manager with GE EGAT and ABB Power President at Kasikorn Bank International Operations Co., Inc. Company Limited GLOW Group) PCL 6
Diversified Portfolio of 2,482 MW with 768 MW under Development SPP - Industrial Estate 89.0% Renewable Group 10.5% Hydro Wind Gas Fired Solar Wind Group 16 MW (under development) Hemaraj 130 MW 6% Laem Chabang* 206 MW 6% Total 43% 263 MW 9% (In Operation Amata Nakorn* 134 MW) 51% Solar Group 34% Hydro Group 754 MW 114 MW 11% Total 133 MW Bangkadi ( 15 MW under construction, 2,206 MW 229 MW 98 MW under development ) (In Operation 1,499 MW) 11% Installed MW Equity MW Type of Under Energy % % Capacity Capacity V.R.M. Cons & Dev 240 MW 29% ( under development ) Gas 399 MW 2,206 MW 89.0% 1,444 MW 89.3% fired 240 MW Amata City Hydro 15 MW 133 MW 5.3% 95 MW 5.8% 647 MW Power 98 MW ( 399 MW under construction ) Solar 114 MW 4.6% 59 MW 3.7% Transmission & Distribution 0.5% Diesel Wind 16 MW 0.6% 16 MW 15 MW 1.0% Diesel 13 MW 0.5% 4 MW 0.2% Bien Hoa 414 MW 13 MW Total 2,482 MW 100% 1,617 MW 100% 354 MW Under Construction Under Development Remark: *Assuming there are replacements in Amata Nakorn (ABP1 150.0 MW in 2019, ABP2 150.0 MW in 2022) and in Laem Chabang (BPLC1 150.0 MW in 7 2022) while existing ABP2 (59.6 MW) and BPLC2 (56.1 MW) still run 1 gas turbine and steam turbine configuration after SPP replacement plants achieve COD
Trustworthy Customers with Long Remaining PPAs Secure Cash Flow 6M/17 Sales and Service Income by Customer Weighted Average Remaining PPA Life (THB mm) (Years) 25.0 23.9 Track Record of Extensions Others Steam-TH 20.4 2% 3% IU-VN 4% 10.1 8.4 EDL PEA EGAT Industrial users Industrial users - electricity - steam Solar (Thailand) (Thailand) IU-TH 6M/2017 Sales Income 29% 15,615 mm EGAT Long-term PPA Structure 62% • EGAT : 21 to 25 years tenor • PEA (Solar) : 25 years tenor • Industrial Users : up to 15 year tenor with track record of extensions Secured Gas Supply with PTT covering respective PPA tenors Gas price pass-through at contracted heat rate under EGAT PPA Note: Weighted Average Remaining PPA life is calculated as the average remaining contractual term remaining from 31 March 2017 to expiry weighted by the aggregate contracted capacity under the relevant agreement 8
Strategically Chosen Blue Chip Customers in Diverse Industries Foothold in Top Industrial Estates Selected Top IU for Electricity and Steam Foothold in Top Industrial Estates Vietnam Hemaraj Laem Chabang Laos ▪ 1 power plant ▪ 2 power plants in operation in operation Bangkadi Amata Nakorn Thailand ▪ 2 power plants ▪ 5 power plants Bangkok in operation in operation Cambodia Amata City Penom Penh V.R.M. Bien Hoa ▪ 2 power plants ▪ 1 power plant under Ho Chi Minh in operation development Poipet Special Amata City Economic Zone ▪ 2 power plants ▪ Development in operation of power plants ▪ 3 power plants and/or under transmission construction and distribution systems Gas-fired cogeneration power plants Distribution and diesel power plant 9
Agenda BGRIM Power Overview Growth Strategy Q2/2017 Operating Result Project Update 10
Robust Growth Pipeline with Secured PPAs and Promising on Execution Achieved COD in time and within budget for 25 consecutive projects during past 6 years Gross Installed Capacity Increase (2017-2022) +1,105 MW +133 MW 2022 2021 44 Plants 44 2020 Potential to increase Plants 2,482 MW* 41 from 36 MW solar 2019 Installed Capacity projects if ERC process Plants is on track 2,397 MW 39 Installed Capacity 2018 Plants 2,127 MW 34 Installed Capacity 2017 2,111 MW Plants Installed Capacity 30 ABP2 Replace 2,060 MW Plants (150MW) BGPR1, BGPR2 Installed Capacity (240MW) 1,646 MW ABP1 Replace Bo Thong 1 & 2 Installed Capacity (150MW) (16MW) ABPR3, ABPR4, BPLC Replace ABPR5 Tadsakoi (150MW) (399MW) (30MW) Nam Khao XXHP (5 plants) Nam Che 1 (20MW) (68MW) (15MW) 934 MW 1,167 MW 1,266 MW 1,281 MW 1,542 MW 1,617 MW Equity Capacity Equity Capacity Equity Capacity Equity Capacity Equity Capacity Equity Capacity Remark: *Assuming existing ABP2 (59.6 MW) and BPLC (56.1 MW) still run 1 gas turbine and steam turbine configuration after SPP replacement plants 11 achieve COD
BGRIM’s Strategy for Sustainable Growth SHORT-TERM MEDIUM-TERM LONG-TERM 70/30 * ✓ Highly Efficient Operating Power Plants ✓ Attractive M&A Conventional/Renewable Opportunities SPP for new Domestic/International Industrial Estate ✓ Investment in Suitable Renewable Energy projects in different Thailand countries Renewable Energy ✓ Strong Network with local partners for Oversea Expansion Network & Partnership ✓ Leverage Strengths and Expertise for Transmission and Business Growth and Expansion CLMV Distribution Operator BGRIM’s Experienced BGRIM’s World Class BGRIM ’s Strong Financial Engineering and Business Technology with High and Well Managed Capital Development Teams Standard Structures 12 Remark: *Target MW Growth Portion
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