Q1 2020 ANALYST MEETING 18 May 2020
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
Due to COVID-19 situation, 2 nd interim dividend announced instead of 2019 annual dividend DIVIDEND PAYMENT | T H B m i l l i o n On 30 March 2020 the BoD approved 2 nd interim 74% Payout Ratio 75% 5000 (% of net income) dividend payment instead of the annual dividend 65% 4,061 Net Income payment to reduce impacts from postponement of AGM 56% 4000 55% from 1 April 2020 to 4 June 2020 as part of 3,359 45% precautionary measures during COVID-19 outbreak. 3000 35% Dividend 2000 25% Payment 2,256 Dividends from 2019 performance totaling THB 1.30 per share 2H/19 2H/18 15% 1,199 1000 1H/2019: THB 0.50 per share Paid on 12 Sep 2019 5% 2H/2019: Paid on 17 Apr 2020 THB 0.80 per share 1H/18 749 1H/19 676 0 -5% *to be acknowledged by the AGM held on 4 Jun 2020 2018 2019 The dividend payment is a result of: DIVIDEND POLICY Successful acquisiton of GLOW Minimum dividend of not less than 30 percent of the Better operating performance in 2019 from continuous growth net profit according to the financial statements of the of 4 projects that started COD in 2019 and higher Availability Company after the deduction of tax, reserved funds as Payment (AP) required by law (with additional conditions) 17 Apr 2020 15 May 2020 4 Jun 2020 26 Feb 2020 Dividend Record date New AGM Date XD Payment Date for AGM Key Timeline 3
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 4
G rowth and Strategic Directions Update of Projects Financial Activities and Plans Financial Performance
GPSC Electricity Growth Pipeline 5,026 MW 2 4,776 MW equity capacity equity capacity 4,766 MW 1 equity capacity SELECTIVE GROWTH PROJECT COD Go along with PTT PROJECT COD Group INORGANIC GROWTH Conventional Energy SPP Replacement (Stage 1) 3 (TH and International) G RP | +39.5 MW Rayong W T E | +10 MW Renewable Energy PROJECT COD (solar and wind) ERU | +250 MW Battery Business Ex pansion | +18 MW 2020 – 2025 Target Se m i-solid Batte r y 2022 - 2023 Pilot p lant | 30 MWh 2021 2020 Notes: 1. Consisting of operating projects 4,708 MW (COD before 2020), GRP 39.5 MW and NNEG Expansion 18 MW) 2. Maintain original capacity of Glow Cogeneration plants 3. SPP Replacement Stage 1: Glow Energy Phase 2 (new plant with 2 PPAs with EGAT, total capacity of 192 MW electricity and 300 T/h steam, SCOD in 2022; and SPP Replacement Stage 2: Glow SPP2 and Glow SPP3 is under feasibility study for internal investment approval. 6
Strategic Direction and Growth Strategy | 3S Strategy Synergy Capture SYNERGY & Operation Excellence & Asset Optimization INTEGRATION Corporate & Business Infrastructure Go along with PTT Group SELECTIVE GROWTH Domestic and International Renewable Battery Business Energy Storage System Integrator S-CURVE Energy Management Solution Provider 7
Strategic Direction and Growth Strategy | Synergy and Integration SYNERGY AND INTEGRATION IMPLEMENTATION “working as one team to deliver synergy ” RECURRING SYNERGY VALUE BASED ON CURRENT PORTFOLIO THB+1.6 bn per year 3% 8% 89% Corp. Function Ramp up with full THB - 4.0 bn & IT Procurement synergy value Operations & One-time contribution by 2024 Maintenance initial investment 2020 ENDORSED SELECTED INITIATIVES TO LOCK-IN VALUE As of Q1/2020, GPSC was able to recognize the synergy value of approx. THB 121 mm from: SYNERGY & INTEGRATION • O&M : Maintenance productivity optimization & Change from time based to activities based Procurement : Reduce total cost of power plant, indirect spend and coal management • Operation Excellence & • Corporate Functions : Optimize financing costs, insurance and working capital management Asset Optimization Corporate & Business 2020 FOCUS MOVED FROM INDENTIFYING Infrastructure POTENTIAL TO DELEVERING PROMISES Execution Focus | Move to monitoring and controlling Speed of Delivery | Prioritization and planning Enablement & Ownership Transfer 8
Strategic Direction and Growth Strategy | Selective Growth SUSTAINABILITY STRATEGY & COMMITMENT To be listed in DJSI by 2022 Increasing renewable energy up to 30% of GPSC’s installed capacity Renewable Energy* Commited Long-Term Target Capacity 30% Way forward to 11% 70% 89% 2020-2023 sustainable growth 5,026 MW equity capacity Conventional Energy SELECTIVE GROWTH Go along with PTT Group Domestic and international “Continuously seeking more international Renewable growth opportunities” Note: *Renewable energy includes solar, wind, waste, hydro, etc. 9 9
Strategic Direction and Growth Strategy | S-Curve THE JOURNEY OF PTT AND GPSC NEW S-CURVE Smart Energy Management & Solution Provider Energy Storage & System Integration Battery Digital Business Energy Transformation Enablement Distributed Energy Resources SMART ENERGY MANAGEMENT ESS FOR GC’s INNOVATION CENTER (Phase II: Q4/2020) (Launched: Feb 2020) 1.39 MW renewable energy (solar roof + floating) Increase gas 1.2 MWh ESS for backup, engine efficiency S-CURVE renewable optimization and Peak shift with ESS zero-import building 250kW/1.5MWh Blockchain P2P energy Emergency trading Battery Business backup power EV chargers Artificial Intelligence Energy Storage & GPSC ENERGY STORAGE SYSTEM PROJECT INFORMATION AND STATUS System Integrator Types Customers Capacity Status Smart Energy Residential Chiang Mai University 10kW/17kWh Management & Industrial GCL 625kW/625kWh with 2MWp solar Solution Provider Industrial GC 250kW/1.5MWh Smart City 1MW/1MWh VISTEC Completed Contructing 10
S-Curve Business | Shift Design to Decide BATTERY MANUFACTURE First Battery Cell by End of 2020 11
Growth and Strategic Directions Update of Projects Update of Projects Financial Activities and Plans Financial Performance
Global Renewable Power Company Limited (GRP) M&A project TYPE ELECTRICITY (MW) PROJECT CLOSING | 26 MAR 2020 39.5 Solar Power Plants GPSC’s HOLDING CUSTOMERS 100% Provincial Electricity Authority (PEA) (through GRP) Global Renewable N.P .S Star Group World X Change Asia P .P . Solar Power Operating 18 17.9 3.6 Capacity (6*3) (5.96*3) (1.2*3) (MW) Off-taker PEA PEA PEA FiT at 5.66 FiT at 5.66 Adder at 8 Tariff Scheme Service Company THB/kWh THB/kWh THB/kWh COD Dec 2015 Dec 2015 Mar 2014/Mar 2015 Pichit, Suphanburi Location Pichit Khon Kaen and Lopburi 13
Project under Nava Nakorn Electricity Generation (NNEG) Expansion construction TYPE ELECTRICITY (MW) STEAM (T/h) SCOD | Q3/2020 10 Expansion 60 Gas-fired Cogeneration 185 40 Total CUSTOMERS LOCATION Nava Nakorn EGAT Industrial Users Industrial Promotion (SPP Firm, 90 MW, 25-yr) Zone, Pathumthani GPSC’s HOLDING PROJECT UPDATE Q1/2020 30% • Main tasks e.g. engineering design, progress 92.3% construction and procurement of main of total share machinery and equipment are on schedule. 14
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