BGRIM: Investor Presentation November 2017
BGRIM Q3/2017 Key Highlights STRENGTHEN STRONG OPERATING CAPITAL STRUCTURE PERFORMANCE • Net D/E ratio 1.5x as at 30 Sep 17 Growth top line; Profitability enhance reduced from 4.1x in 31 Dec 16 • 15% Sales growth YoY; THB 23.7 (Net Interest-bearing debt) billion for 9M’2017 • USD 20 million ADB facility and • 17% EBITDA growth YoY Strong USD 235 million facility expects to • 24% NNP to Owner growth YoY be signed by Q4/2017 Performance • 28% EBITDA Margin • Pursuant of rating-corporate bond to be rollover in Oct 2018 with RECOGNITION OF REVENUE ROBUST PIPELINE OF FROM XXHP IN LAOS GROWTH Growing • Recognized revenue from EDL for • ABPR 3, 4 and 5 progressed as Robust THB 59 million generated from planned , an additional of 399 MW in BGRIM first hydro power project – Pipeline 2018 XXHP – which COD in Aug’17 with • Selected as sponsors of the solar installed capacity of 20 MW farm projects for a total of 7 projects with a total capacity of 31 MW • Significant progress on SPP replacement Q3’2017 B.GRIMM INVESTOR PRESENTATION B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT Q3/2017 OPERATING RESULT PROJECT UPDATE PROJECT UPDATE 1
Agenda B.Grimm Overview B.Grimm Growth Strategy Q3/2017 Operating Result Project Update Q3’2017 B.GRIMM INVESTOR PRESENTATION B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT PROJECT UPDATE 2
B.Grimm Updates and Outlooks 1. Improving Gearing Ratio • Improve current gearing from 4.1x to 1.5x under • Rollover corporate bond with rating bond and larger tenor Well-managed • Manage capital structure to lower finance cost Capital Structure 2. SPP • The scheme for SPP operators whose contract will expire between 2019-2025to 5. Micro Grid Replacement extend with the new 25-year PPA Scheme • Contract capacity is 10-30 MW; <=30% of net generating capacity • SPP has an ability to produce power in firm contract during peak period 3. SPP • Total quota of 300 MW; Capacity per project is 10-50MW Hybrid • Submit application in mid Oct 2017 Scheme • Announced winner in early Dec 2017 • VSPP must use biofuels as feedstock to produce power in semi-firm contract 4. VSPP during peak period for 6 months a year Semi-Firm • Total quota of 268 MW; Capacity per project is up to 10 MW Scheme • Submit application tentative in early 2018 (subject to SPP Hybrid timeline) Q3’2017 B.GRIMM INVESTOR PRESENTATION B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT PROJECT UPDATE 3
Lower Finance Cost from Improving Gearing Ratio Ongoing Consideration Repayment of Corporate Loan as Planned 1. Corporate debenture GEARING RATIO Debt Profile issaunce Improving AFTER IPO AFTER IPO Gearing Ratio Potential to under Well- gearing with low Loan managed funding cost 4% THB 1.9 bn facility, i.e. ADB Capital Structure 10% Corporate Corporate Level Repay Debenture will 1.4 Debenture shareholder 10% Debenture be rolled-over by loan THB 5,493 MM 4% (THB bn) THB 5.5 bn a rating bond Corporate Level within Q4 2018 Loan THB 1,949 MM 42% Existing Corporate Corporate Debt 4.6 Project Level loan Loan (THB) 22% (THB bn) THB 22,295 MM Project Level 4.1x Debenture THB 11,482 MM 2. Strategy to enhance financing costs 22% 1.5x Project Level Loan (USD) Debt room to THB 12,039 MM enhance financing cost by refinancing Loan 64% with Project D/E on Use of D/E on THB 34.3 bn Dec 2016 IPO Q3'2017 Debenture / Loan proceed Key consideration Lower gearing ratio of 1.5x Largest part of Debt Profile comes Debenture 22% 1. Refinancing net interest debt to equity from Project Debt THB 11.5 bn yield after IPO Existing 2. Operating years Project Debt 3. Refinancing cost Q3’2017 B.GRIMM INVESTOR PRESENTATION B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT PROJECT UPDATE 4
SPP Replacement Scheme – Renewal of 25-year PPA Conditions Implications to BGRIM Criteria and conditions for SPP replacement 1. 3 SPP plants, ABP1, ABP2 and BPLC, are qualified for SPP replacement (150 Condition - Constructed within the existing area or nearby MW each) - Sold to the industrial users within the industrial area - Connected with the existing electricity systems. 2. ABP1, ABP2 will have SPP 10 – 30 MW Contracted - more equity capacity (51% ownership) Replacement capacity - <= 30% of net generating capacity (Electricity and steam) after Existing PPA capacity under Scheme ABPIF scheme (15% ownership) Operator - Firm SPP operator with Cogeneration systems 3. EPC efficiency support Within year 2019 – 2025 Contract - the replacement and also benefit expiration BGRP1 & BGRP2 which PPA was awarded under 3 rd SPP scheme (2010) SCOD - Expiry date of existing PPA or - 31 Dec 2021 in case existing PPA is expired by 2020 4. Increase in operating margin due to the PPA period - 25 years increase in portion of electricity sold to industrial users Type of fuel - Natural gas only 5. SPP replacement scheme is expected - 7 May 2018: EGAT to notify ERC for qualified SPP plant for Key tentative to apply to all SPPs timeline SPP replacement scheme Tariff Structure Power plants Existing capacity New capacity Tariff structure Key terms and conditions Installed Equity Installed Equity capacity capacity capacity capacity ABP1 166.4 25.5 150.0 76.8 Contracted Heat Rate 7,409 BTU/KWh ABP2.0* 111.6 17.1 150.0 76.8 BPLC1 103.0 103.0 150.0 150.0 CP 0 (at 34 Baht/USD 497.94 ABP2.1* 59.6 9.1 59.6 30.5 exchange rate with baht/KW/month 50% indexation) BPLC2* 56.1 56.1 56.1 56.1 Total 496.7 210.8 565.7 390.2 2.0086 Baht/KWh EP 0 Additional 69.0 179.4 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 achieve COD *Note: CP: Capacity payment, EP: Energy payment Q3’2017 B.GRIMM INVESTOR PRESENTATION B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT PROJECT UPDATE 5
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 2017 Built Rangsit canal Supplied turnkey systems Awarded first Small Consortium leader B.Grimm Power Opened Siam Installed the first Power Producer (“SPP”) together with telephone line and services with for Airport Rail reached 1,646 MW Dispensary Snidvongse family between Germany Siemens for BTS sky train contract for Amata Link installed capacity and Thailand B.Grimm Power 1 Q3’2017 B.GRIMM INVESTOR PRESENTATION 6 B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT PROJECT UPDATE
Diversified Portfolio of 2,513 MW with 867 MW Under Development SPP – INDUSTRIAL ESTATE 88% RENEWABLE GROUP 11.5% Gas Fired Wind Group Hemaraj 16 MW 130 MW (under development) Laem Chabang* 6% 6% 206 MW 9% Amata Nakorn* 34% Total 294 MW 754 MW Bangkadi 11% 49% Solar Group 229 MW In Operation Hydro Group 45% 145 MW 134 MW Total 2,206 MW 133 MW ( 15 MW under construction, In Operation 1,499 MW 98 MW under development ) V.R.M. 11% 240 MW ( under development ) Installed MW Equity MW Type of 29% Under Energy % % Capacity Capacity Develop Amata City 647 MW Gas 2,206 MW 87.8% 707 MW 1,498 MW 88.1% fired ( 399 MW under construction ) Hydro 133 MW 5.3% 95 MW 5.6% 113 MW Power Diesel TRANSMISSION & DISTRIBUTION 0.5% Solar 145 MW 5.8% 31 MW 90 MW 5.3% Wind 16 MW 0.6% 16 MW 15 MW 0.9% Bien Hoa 13 MW Diesel 13 MW 0.5% 4 MW 0.2% 867 MW Total 2,513 MW 100% 1,701 MW 100% 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 2022) while existing ABP2 (59.6 MW) and BPLC2 (56.1 MW) still run 1 gas turbine and steam turbine configuration Q3’2017 after SPP replacement plants achieve COD B.GRIMM INVESTOR PRESENTATION 7 B.GRIMM Q3/2017 KEY HIGHLIGHTS B.GRIMM OVERVIEW B.GRIMM GROWTH STRATEGY Q3/2017 OPERATING RESULT PROJECT UPDATE
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