GLOBAL POWER SYNERGY PUBLIC COMPANY LIMITED dbAccess Asia Conference 2019 May 21 st , 2019 THE INNOVATIVE POWER FLAGSHIP OF PTT GROUP
Q1 2019 KEY HIGHLIGHTS ‘GROWING PROFIT WITH SUSTAINABILITY AND CONTROL’ SIGNIFICANT PROFIT SUSTAINABILITY CONTROL GROWTH 118% increase in THB 0.80 per GPSC completed the Nam Lik1 ’s construction is share acquisition of GLOW 69.11% EBITDA QoQ due to 100% completed on March 14, 2019 , and contribution of GLOW dividends for 2H/2018 Xayaburi and CUP4 submitted the Tender Offer and better operation of which was paid on which are under for Securities for the 30.89% Sriracha Power Plant April 18, 2019 construction expected to remaining shares of GLOW on 27% of gross profit Awards from COD within 2019 March 22, 2019 margin in Q1/2019 due NNEG expansion phase • Best Power Company 2019 Integration with GLOW will to better performance expected to COD in 2020 and Best IR Company consist of 3 phases, with next with better cost (Energy Sector) from six months focused on management of Sriracha International Business Magazine planning and capturing quick Power Plant • CFO of the year from the Asset wins 12% of normalized Triple A awards Coordinated with PTT Group net profit margin in • OEMS Improvement (Gold on ESS and new S-curve Q1/2019 due to better Award) and Best Practice Sharing projects , aiming to be a performance of Sriracha from PTT Group Operational system integrator Excellence Award 2019
GPSC Growth and Strategic Direction Updates on GLOW Acquisition GPSC Portfolio Investment in Affiliates Financial Performance 3
Strategic Direction and Growth Strategy 3 Pillars S-CURVE SELECTIVE GROWTH SYNERGY & INTEGRATION Battery Business Energy Storage Growth along with System Integrator PTT Group Synergy Capture Energy Management Domestic and Solution Provider Operation Excellence International & Asset Optimization Renewable Corporate & Business Infrastructure 4
Strategic Direction and Growth Strategy Synergy & Integration GPSC and GLOW integration with three key priorities Realize synergies to Define new Ensure operational capture value organizational structure continuity and business SYNERGY & and manage change growth after integration INTEGRATION Integration will consist of 3 phases, with next six months focused on planning and capturing quick wins May-Jul 2019 Aug – Oct 2019 Nov 2019 onwards Synergy Capture Implementation 1 2 3 Analysis & Planning Quick Wins Operation Excellence Launching all initiatives • Baselining performance • Designing and launching all • & Asset Optimization • Driving full integration plan quick wins Enhancing and prioritizing • implementation synergy initiatives • Preparing to launch all • Monitoring, controlling and remaining synergy initiatives Developing business cases • Corporate & Business reporting progress on and action plan Infrastructure financial and other metrics • Launching select quick win initiatives 5
Strategic Direction and Growth Strategy Selective Growth SHORT-TERM GROWTH LONG-TERM GROWTH 2021-2025 2019-2020 GROWTH ALONG WITH RENEWABLE IN PTT GROUP SELECTIVE GREENFIELD AND Domestic and international GROWTH DEVELOPER SCHEME such as Gas to power INVESTMENT investment also the investment in Maptaphut and EEC area PDP 2018 USE CO-GENERATION Opportunity capture such as SPP replacement as ERC EXPERTISE TO announced the electricity Growth along EXPAND IN purchase from SPP with FOCUS COUNTRIES with PTT Group contact ending during 2019- 2025, Solar floating (EPC) and Solar PPPA Domestic and SELECT & DEVELOP International STRATEGIC PARTNER for focus countries Renewable 6
Strategic Direction GPSC has strengthen its knowledge and capabilities in providing ESS services and Growth Strategy GPSC AS A SYSTEM EXPLORE NEW S-CURVE INTEGRATOR S-curve BUSINESS FROM ESS SEEKING NEW MARKET AND 2019 Onwards CUSTOMERS THROUGH PILOT PROJECTS 2018-2019 S-CURVE System Integrator/ Manufacturer in Market and Developer in Battery Technology Micro-grid/ESS Intelligence in Digital Energy Peak Shift & Gas Turbine Efficiency Renewable Integration for Peak GCL GC Improvement (Dec 2019) Shift & Back-up (Mar 2019) Become a pioneer battery Increase efficiency of Gas Increasing effectiveness producer and energy Turbine of power consumption Battery Business storage system integrator Improve power stability of GC that benefit environment operation in Rayong province Support ESS by offering Provide future power Energy Storage Energy Management optimization for major System Integrator industries supporting GC Solution Group Invest in potential project GPSC Energy Storage System Projects Information and Status: Energy within electricity value Type Customer Capacity Status chain Management Residential Chiang Mai U 10kW/17kWh Solution Provider Industrial GCL 625kW/625kWh with 2MWp solar Industrial GC 250kW/1.5MWh Complete Contructing 7
GPSC Growth and Strategic Direction Updates on GLOW Acquisition GPSC Portfolio Investment in Affiliates Financial Performance 8
Acquisition Transaction Timeline and Long-term Finance Plan 23 May Aug 18 Payment to EGM/ Shareholder Approval shareholders Tender Offer period 14 March 19 25 March 19 17 May 19 Q3 2019 20 Jun 18 Deal Closing Start of Offer Tender Offer Expected Period SPA Signing Completion Equity Offering Acquisition of GLOW Acquisition of GLOW Tender offer Tender offer Long-term financial plan Long-term financial plan 93,000 MB 69.11% • 22 March, GPSC submitted the Tender On March 14, 2019, GPSC acquired both GPSC plans to issue equity offering to Offer for Securities (Form 247-4) directly and indirectly the shares of ensure right capital structure and • GPSC has made a tender offer for the GLOW, equivalent to 69.11%, from financial ratio of GPSC . remaining shares of GLOW . In case ENGIE Global Developments B.V . GPSC has more than 80%, GPSC would consider delisting GLOW. 9
Purchase Price and Tender Offer Price of GLOW Dividend to be paid at Brokerage fee and THB 1.1770 per share VAT at THB 0.2429 per share 1.1770 0.2429 91.9906 90.5707 Acquisition price Dividend Brokerage fees Tender offer 17 May 2019 and VAT price (Net) 10
Use and Source of Fund with Deleveraging Plan USE OF FUND SOURCE OF FUND AND DELEVERAGING PLAN FOR FUTURE GROWTH 134.5 Bn Loan from PTT and GC 35 Bn Equity ≤ 74 Bn Bridge loan from Financial Institutions 99.5 Bn Loan and Debentures Consideration of Consideration for GPSC Bridging loan Deleveraging plan GLOW's shares Tender offer 30.89% Net D/E Target Net D/E for 69.11% 1X 1.96X USE OF FUND FOR FUTURE GROWTH SHORT-TERM PLAN LONG-TERM FINANCIAL PLAN GPSC acquired shares of GLOW, equivalent GPSC secured the short- After the capital restructuring plan, GPSC will • • to 69.11% from ENGIE Global term loan at THB 134,500 repay short-term loan with debentures/ long- Developments. million from PTT, GC and term loan, equity injection, and net dividend GPSC completed the payment amounting to Financial institutions. payment from GLOW • THB 93,000 million in total. The fund will also be used in investments for • GPSC has made a tender offer to purchase future growth. • the remaining 30.89% shares of GLOW. 11
GPSC Growth and Strategic Direction Updates on GLOW Acquisition GPSC Portfolio Investment in Affiliates Financial Performance 12 12
GPSC Electricity Growth Pipeline Selective Growth 5,026 MW Equity Capacity FUTURE GROWTH 4,776 MW COD of projects 4,766 MW Equity Capacity Growth along with 4,748 MW Equity Capacity PTT Group COD of projects Equity Capacity ERU +250MW COD of projects GLOW SPP Replacement Inorganic Growth Rayong WTE +2,771MW +10MW Conventional Energy +39.5MW Expansion+18MW ( Thailand and International) Note: Base on 100% in GLOW COD of projects Renewable Energy (Solar and Wind) XPCL + 321MW NL1PC +26MW CUP 4 +45MW CUP 3 Expansion +15MW Target 2019 2020 2021 2023 within 2025 13
Diversified Sources of Fuels and Customer Base Expansion in EEC THAILAND Portfolio by source of fuel (MW) GRP TSR (SSE1) Solar Waste, Glow Energy Solar Solar 2% PV Rooftop 0.3% 3% Pitch RPCL Hydro CHPP Hydro 5% 18% (Solar) EEC BIC-1-2 9% NNEG Coal 5,026 1,955 16% CHPP MW MW “ Utility demand in EEC Natural gas expected to grow Natural gas 79% 3.42% CAGR* ” 68% 2018 2023 Portfolio Sriracha ERU Growth Pipeline Glow IPP GPSC‘s source of fuel will be more diversified and CCE less focus on natural gas by including coal and Rayong hybrid fuel. As a result, cost of fuel will be less Glow Energy Solar PV volatile from change in natural gas price. Rooftop Rayong WTE Glow SPP Gheco- IRPC-CP 11 Phase one Phase1-2 1-3 CUP1-4 Glow Note: Base on 100% in GLOW Glow Energy Energy Glow Glow Solar Phase SPP Energy Plant 1,2,4,5 CFB 3 2,3 Source: PEA, MEA, Ministry of energy 14
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