BGRIM: Investor Presentation for Q1’2018 May 2018
BGRIM Q1’2018 Key Highlights COLLABORATION BGRIM and Siemens aim to collaborate on enhancing ◼ efficiency, availability and digitalization and target to be WITH SIEMENS finalized in July 2018. B.Grimm was rated as ‘A’ credit rating by TRIS with target to ◼ ‘A’ CREDIT issue corporate bond of at least THB 5.5bn in Oct 2018 RATING BOND Progress on BIP 1-2 project debenture issuance amount of ◼ THB 6.7bn in May 2018 B.Grimm has been pursuing to invest in the largest solar power VIETNAM SOLAR ◼ plant with an installed capacity of 420 MW in Vietnam. PROJECT The project is eligible to obtain tariff of 9.35 US dollar cents ◼ INVESTMENT and targets to COD on 30 June 2019 SOLAR ROOFTOP B.Grimm joint venture with facility providers to develop solar ◼ JOINT VENTURE rooftop project with up to 70 MW. Q1’2018 BGRIM INVESTOR PRESENTATION Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE 3
Agenda Q1’2018 Update BGRIM Overview Q1’2018 Operation Result Project Update Q1’2018 BGRIM INVESTOR PRESENTATION Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE 2
Enhancing Profitability of Operating Project “BGRIM and Siemens Thailand aims to COLLABORATION collaborate on enhancing the performance of WITH SIEMENS gas turbine target to finalize in July 2018” Benefits from the collaboration with Siemens Enhance Enhance Moving towards Availability Efficiency Digitalization To increase availability or To enhance heat rate of gas To predict the degradation of reduce a number of turbine after performing a machine more accurate maintenance days major overhaul More electricity to sales Use less gas to produce More capacity available during maintenance electricity to sales to IUs 2018 TENTATIVE May June Execution on long- July Progress Update term service Technical team finalize Determine target KPI agreement (LTSA) implementation concept Q1’2018 BGRIM INVESTOR PRESENTATION Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE 4
Lower Funding Cost through Various Sources of Financing “BGRIM financial cost will gradually reduce by ‘A’ CREDIT RATING BOND well-managed capital structure ” 1. Corporate loan saving Q1/2018 Capital Structure THB 7.3 bn Potential to gearing with low funding cost - ADB facility of USD 235mm Loan 3% Corporate THB 1.8 bn TRIS Rating announces the company rating at “A” with level 13% “Stable” outlook Debenture TOTAL DEBT Corporate debenture will be issued at tentative timeline 10% THB 5.5 bn THB 53.1 bn in Oct 2018 to mainly roll-over an unrated bond of THB 5.5 bn and use for new investment Existing Corporate Debt 87% Project level 2. Project loan saving THB 45.8 bn Financing cost has gradually Preliminarily structure of BIP1 and BIP2 project bond to be issued in May 2018 improved to 4.5% Loan • Amount of THB 6.7 bn 65% THB 34.3 bn • 15-year amortization 0.05 • Issued rating “A - ” 4.9% 0.05 0.05 4.7% Other potential project loans to be refinanced include 0.05 Debenture 0.05 BPLC 1-2 (THB 1.8 bn), BGPSK solar (THB 0.4 bn) and 4.5% 22% 0.05 THB 11.5 bn solar JV (THB 5.4 bn) 0.05 0.04 Existing 0.04 Project Debt 2016 2017 Q1/18 Q1’2018 BGRIM INVESTOR PRESENTATION 4 Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE
Investing in the Largest Solar Project in ASEAN “BGRIM grows inorganically by investing in VIETNAM SOLAR PROJECT solar project 420 MW in Vietnam . ” INVESTMENT Project Profile Land Profile LOCATION: Partner Xuan Cau Co.,Ltd. Tay Ninh (South-Western Vietnam) LAND AREA: Project type Solar PV Approx. 724 ha. (4,525 rais) Installed : up to 420 MW dc Capacity Contract : up to 350 MW ac Tariff structure 9.35 Cent USD per kWh Progress PPA period 20 Years ✓ The project obtained MOIT (Ministry of Industry and Trade) approval and in process of obtaining PPA BGRIM shareholding Up to 55% ✓ Local partner is proceeding land certificate expected to complete in June SCOD 30 June 2019 ✓ BGRIM shortlisted EPC and in process of final negotiation Q1’2018 BGRIM INVESTOR PRESENTATION 5 Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE
Moving Forward to Develop Solar Rooftop Projects “BGRIM establishes a new joint venture SOLAR ROOFTOP JOINT VENTURE company for development of solar rooftop projects up to 70 MW .” Project Profile Location Joint venture with facility Project description providers Approximately USD 1-1.5 Project cost mm per MW Capacity Up to 70 MW Tariff structure Discounted to PEA tariff LOCATION: CONSTRUCTION PPA period 10-15 Years Industrial users in PERIOD: industrial estates 2-3 months after NTP in Thailand. BGRIM shareholding 70-100% Q1’2018 BGRIM INVESTOR PRESENTATION 6 Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE
Agenda Q1’2018 Update BGRIM Overview Q1’2018 Operating Result Project Update Q1’2018 BGRIM INVESTOR PRESENTATION Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE 9
Well-Diversified Portfolio with Expert in Green-Field Developer SPP – INDUSTRIAL ESTATE 87.6% RENEWABLE GROUP 11.9% Gas Fired Wind Group Industrial Waste to 16 MW Energy (IWTE) Hemaraj (under development) 5 MW 130 MW 2% (under development) 5% Laem Chabang* 6% 206 MW 9% Amata Nakorn* Total 298 MW 34% Bangkadi 754 MW 49% 11% In Operation 229 MW 44% 134 MW Total 2,206 MW Hydro Group 133 MW In Operation 1,631 MW Solar Group ( 113 MW under development ) 145 MW V.R.M. 11% (31 MW under development) 240 MW ( under development ) Installed MW Equity MW Type of Total In Total In % % 29% Energy Capacity operation Capacity operation Gas 2,206 MW 87.6% 1,631 MW 931 MW Amata City 1,498 MW 87.9% fired 647 MW ( 266 MW under construction ) 5.3% 5.5% 133 MW 95 MW Hydro 20 MW 14 MW Solar 145 MW 5.8% 114 MW 90 MW 5.3% 59 MW TRANSMISSION & DISTRIBUTION 0.5% Diesel 0.6% 0.9% Wind 16 MW 15 MW 0.2% 0.1% IWTE 5 MW 2 MW Bien Hoa Diesel 13 MW 0.5% 13 MW 4 MW 0.2% 4 MW 13 MW 100% 100% Total 2,518 MW 1,779 MW 1,703 MW 1,008 MW Remark: *Assuming ABP2 (59.6 MW) and BPLC2 (56.1 MW) still run 1 gas turbine and steam turbine configuration after SPP Q1’2018 BGRIM INVESTOR PRESENTATION replacement plants achieve COD Q1’2018 UPDATE Q1’2018 OPERATING RESULT 8 BGRIM OVERVIEW PROJECT UPDATE
Long-Life PPA and Benefit from Well-Establishment of PPA Q1’2018 SALES AND SERVICE INCOME BY WEIGHTED AVERAGE REMAINING PPA LIFE CUSTOMER Track Record of Extensions Steam-TH Others 2% 3% 24.9 23.3 IU-VN 19.7 3% Years Years Years 9.6 7.6 Years Years IU-TH EDL PEA / MEA EGAT Industrial users Industrial users 30% - electricity - steam (Thailand) (Thailand) THB 8,156 mm Q1’2018 Sales and Service Income LONG-TERM PPA STRUCTURE • EGAT EGAT : 21 to 25 years tenor with take-or-pay structure 62% • PEA : 25 years tenor (VSPP of solar, wind, waste to energy) • 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 2018 to expiry weighted by the aggregate contracted capacity under the relevant agreement Q1’2018 BGRIM INVESTOR PRESENTATION 9 Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE
Delivery of Reliability in Form of Electricity and Steam FOOTHOLD IN TOP INDUSTRIAL ESTATES WITH SELECTED TOP IU FOR ELECTRICITY AND STEAM MULTIPLE OF GENERATING UNITS IN EACH LOCATION VIETNAM XXHP Hemaraj ▪ 1 power plant ▪ 20 MW ▪ 1 power plant ▪ 3 generating units LAOS ▪ 130 MW ▪ 3 generating units Laem Chabang ▪ 2 power plants ▪ 206 MW Bangkadi ▪ 5 generating units THAILAND ▪ 2 power plants ▪ 229 MW ▪ 6 generating units Amata Nakorn ▪ 5 power plants CAMBODIA ▪ 754 MW V.R.M. ▪ 17 generating units ▪ 2 power plants ▪ 240 MW ▪ 6 generating units Amata City Bien Hoa ▪ 1 power plant Amata City ▪ 13 MW ▪ 5 power plants ▪ 647 MW ▪ 15 generating units Gas-fired cogeneration power plants Transmission and Distribution Hydro power plants Q1’2018 BGRIM INVESTOR PRESENTATION 10 Q1’2018 UPDATE Q1’2018 OPERATING RESULT BGRIM OVERVIEW PROJECT UPDATE
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