Q1 2020 Corporate Presentation
Petroleum Authority of Thailand PLC (PTT) GPSC's parent company: the largest energy conglomerate in Thailand PTT’s Holding Business Area Company Activities (%) E&P PTTEP 65.29% Exploration and production PTT Global Coal 100% Coal business Management Upstream PTT Global LNG 50% LNG value chain LNG PTT LNG 100% LNG receiving terminal Sole owner/operation of the transmission Gas Pipeline* 100% pipeline Gas S&M* 100% Supply & marketing of natural gas Intermediate Extracting hydrocarbon contents in natural gas GSP* 100% for petrochemical’s feedstock Import/Export/Out-out trading of petroleum and Trading Trading* 100% petrochemical products Oil Marketing PTTOR** 100% Retail service stations and commercial marketing PTTGC 48.18% Petrochemical flagship Downstream Petrochemical & TOP 48.03% Refinery flagship Refining Integrated refinery & petrochemical IRPC 48.05% Power flagship Technology 22.81% Power New S-Curve business of PTT group & Engineering Note: *Businesses directly operated by PTT PLC **Transferred asset to PTTOR on July 1, 2018 Source: PTT’s Investor Update May 2019 2
Current power industry structure in Thailand • EGAT and IPPs dominate electricity generation market , with the combined market share 75%. • EGAT is the sole purchaser for almost all of the electricity generated, while VSPPs sell electricity directly to the MEA and PEA • SPPs sell electricity to both EGAT and directly to industrial users Peak demand 37,312 MW in 2019 EGAT IPPs Imports SPPs VSPPs Cogeneration Generation (39%) (36%) (9%) (16%) (<1%) Plant EGAT Transmission (Single Buyer, Network System Operator) (99%) ERC (Regulator) PEA (69%) MEA (30%) Distribution End User Industrial User End Users (99%) (1%) Definition EGAT Electricity Generating Authority of Thailand (State-owned entity) IPP Independent Power Producers SPP Small Power Producers VSPP Very Small Power Producers MEA Metropolitan Electricity Authority (State-owned entity) PEA Provincial Electricity Authority (State-owned entity) ERC Energy Regulatory Commission Source: EGAT and GPSC 3
Power plant definition and revenue structure IPP SPP VSPP Small Power Producer (SPP) / Very Small Power Producer (VSPP): Independent Power Producer Cogeneration (Cogen): (IPP): • A very small generator whose power • A large power producer who A small power producer who sell their electricity • generating process is generated from has entered into the Power to EGAT* and sell their electricity and utilities renewable energy, cogeneration, Purchase Agreement (PPA) (e.g. steam, industrial water, chilled water) to biogas, biomass, waste heat, etc. with with contracted capacity Industrial customers (IUs) more than 90 MW contracted capacity no more than 10 Contract Type: MW of electricity capacity • IPPs are obliged to sell their EGAT: entire output to EGAT • VSPPs are able to sell power to the - Firm: Contract term > 5 years ; CP + EP (+ FS)** Distribution Utility Authority only - Non-Firm: Contract term <= 5 Years; Only EP NF IUs: Commercial contract as agreed. EGAT (Power) Availability Fuel Base Capacity Energy Firm Ft adder Payment Payment Payment Payment Tariff K factor Energy Non-Firm Payment (seasonal weight) Industrial Customers Availability % Energy cost PEA tariff Electricity x regarding TOU Rate 4.2** Feed in Tariff Availability % Dispatch to Steam Base Cost Payment Rate Steam x EGAT (APR) (Gas index + CPI index) * Under various type of contracts. ** Fuel Saving (FS) *** Reference rate with conditions: https://www.pea.co.th/Documents/Rate2015.pdf 4
GPSC's vision and mission VISION The Global Leading Innovative and Sustainable Power Company Create long- term shareholders’ value with profitable growth MISSION Deliver reliable energy through operational excellence to customers Conduct business with social and environmental responsibility Seek innovation in power and utility efficiency management through energy storage technology 5
GPSC Customers’ Profile in Q1/2020 51% Industrial Users 48% EGAT LONG TERM OFF TAKE CONTRACTS 1% Others Guaranteed market and source of revenue Guarantee a minimum level of profit in regards to their investment *Q1/2020 revenue by customers Price adjustment formula, varying with fuel price 6
GPSC Innovative Power Company at a Glance | as of 8 May 2020 TOTAL EQUITY CAPACITY * SHAREHOLDING STRUCTURE Electricity | 5,026 MW Steam | 2,876 T/H Chilled Water | 15,400 RT Public Industrial Water | 7,372 Cu.m./H 22.8% 24.8% 2,819.7 million shares 8.9% 22.7% COMBINED CYCLE | 20.8% COGENERATION | THERMAL Electricity | 4,463 MW Steam | 2,876 T/H COMPANY INFORMATION Chilled Water | 15,400 RT Industrial Water | 7,372 cu.m./H Business Type | Energy & Utilities Paid-up Capital | THB 28,197 million Market Cap. | THB 191,741.6 million Listed on | Stock Exchange of Thailand HYDROELECTRIC Electricity | 449 MW CREDIT RATINGS BBB- AA- RENEWABLE ENERGY Electricity | 114 MW A+(tha) OTHER BUSINESSES 24M | BSA Note: *Committed equity capacity 7
GPSC’s Business Portfolio by Fuel and Plant Type | as of Q1/2020 BY FUEL TYPE 68% natural gas INSTALLED MW EQUITY MW 16% coal FUEL TYPE total capacity in operation % total capacity in operation % 9% hydro 63 % natural gas 5,047 4,987 3,399 3,381 6 8 % 5% petroleum pitch 19 % 2% solar hydro 1,502 1,502 449 449 9 % 0.3% waste 13 % coal 1,045 1,045 814 814 16% petroleum BY FUEL TYPE 3 % 250 - 250 - 5 % pitch TOTAL solar 2 % 149 109 101 101 2% 5,026 MW 0.2 % waste 18 9 13 3 0. 3 % committed equity capacity TOTAL 8,011 7,691 100% 5,026 4,7 4 8 100% 49% IPP BY PLANT TYPE 43% SPP INSTALLED MW EQUITY MW PLANT TYPE 5% ERU total capacity in operation % total capacity in operation % 3% VSPP + renewable IPP 4,910 4,910 61% 2,440 2,440 4 9 % SPP 2,614 2,554 33% 2,192 2,174 4 3 % BY PLANT TYPE ERU 250 - 3% 250 - 5 % TOTAL 5,026 MW VSPP + 237 227 3% 144 13 4 3 % renewable committed equity capacity TOTAL 8,011 7,691 100% 5,026 4,7 4 8 100% 8
GPSC’s Business Portfolio by Plant Type | as of Q1/2020 VSPP and renewable | 3% IPP | 49% Global Renewable Power 39.5 27% 65% natural gas (GRP) Sriracha Power Plant 700 29% 18% coal Thai Solar Renewable 32 22% Glow IPP 677 28% TSR (SSE1) * 17% hydro Ratchaburi Power (RPCL) * 210 9% Ichinoseki Solar Power 21 15% 70% solar (ISP1) TOTAL 1,587 65% IPP TOTAL 18% hydro GHECO-One 429 18% Combined Heat and Power 5 3% 2,439 MW 9% waste Producing (CHPP Solar) Xayaburi Power (XPCL) * 321 13% 3% natural gas Glow Energy Solar PV Houay Ho Power 102 4% committed equity capacity 2 1% Rooftop TOTAL 423 17% VSPP and renewable TOTAL Glow Energy Solar Plant 1 1% 145 MW TOTAL 100.5 70% committed equity capacity Nam Lik 1 Power (NL1PC) * 26 18% Rayong WTE 10 7% SPP | 43% Chonburi Clean Energy 3 2% (CCE) Glow Energy Phase 2 281 13% TOTAL 13 9% CHPP 5 3% Glow Energy Phase 4 77 4% 82% natural gas Glow Energy Phase 5 328 15% 18% coal ERU | 5% Glow SPP2 213 10% Glow SPP11 272 12% 100% petroleum pitch Rayong CUP 1-3 354 16% SPP TOTAL IRPC-CP (Phase 1-2) 122 6% 2,192 MW Bangpa-in Cogeneration 59 3% committed equity capacity BIC (Phase 1-2)* ERU TOTAL 250 100% NNEG * 56 3% 250 MW Rayong CUP 4 45 2% committed equity capacity TOTAL 1,807 82% Glow SPP3 300 14% Glow CFB3 85 4% TOTAL 385 18% Note: * GPSC associates and Joint Ventures 9
Q1 2020 KEY HIGHLIGHTS “Growing profit with sustainability and control” PROFIT SUSTAINABILITY CONTROL SIGNIFICANT GROWTH Integration & move forward 2 nd Interim Dividend 107% Increase in Adjusted Projects Under Construction with the new organizational Net Income, YoY 2019 2 nd interim dividend payment due to full contribution from Glow GLOW acquisition completed and of THB 0.80 per share made on Expansion phase, 92.3% construction and higher AP from Sriracha Power new organization structure 17 Apr 2020 progress, SCOD in 2020 implemented since 1 Apr 2020 to Plant due to THB depreciation ensure synergy target and group’s against USD Awards vision are supported WTE , 57.5% construction progress, 27% QoQ increase from SCOD in 2021 Bridging Loan Fully Repaid Q4/2019 Best Cross-Border M&A ERU , jointly operated with Thaioil, due to increased AP and EP from deal from the THB 134.6 GPSC’s bridging loan of THB 134.5 29% construction progress, EGAT and decreased cost of SPP billion acquisition deal billion fully repaid in Q1/2020 as SCOD in 2023 natural gas and maintenance of Glow Energy PLC planned by capital increase of THB 74 from Engie billion and debenture issuance of THB Development BV No Significant COVID-19 35 billion completed in Q4/2019 and SPP Replacement , replacement of: new bank loans of THB 12 billion Impact GE Phase 2 (Stage 1): under obtained in Q1/2020 2019 Bond Deal of the Q1/2020 started off with strong construction with SCOD in 2022 Year from the issuance of operational performance. However, GSPP2 and GSPP3 (Stage 2) : Closing of 39.5 MW Solar Project THB 35 billion bonds any delayed impact on industrial under feasibility study for internal Completed M&A of 39.5 MW solar customers demand being closely investment approval project through GRP on 26 Mar 2020 monitored
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