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Energy Absolute Energy for Future Analyst Meeting For Q3/2018
Energy AbsoluteEnergy for Future
Analyst MeetingFor Q3/2018
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AGENDA
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Over View
Our Power Business
Our Biodiesel Business
Our Financial Results
Our Growth
E@ at a Glance
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Established In 2006 to produce palm oil
Core Business Energy (Renewable and Utilities)
Secondary Market The Stock Exchange of Thailand since 30 Jan 2013
Market Capitalization
As of 30 Oct 2018
Approximately THB 182.77 billion (US$ 5.54 billion)
Credit Rating Corporate rating : A-
Liquidity Free Float 39.86%
Closed price : THB/share ‘000 shares
1 Jul 2017 15 Sep 2017 18 Oct 2018
Shareholder Structure
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Number of Total Shareholders = 17,888Free Float = 39.86%
Mr.Somphote AhunaiChief Executive Officer
Education• MBA from University of Pittsburgh, USA• Bachelor of Engineering from Chulalongkorn University, ThailandPrevious Work • Analyst and Researcher in USA.• Managing Director of a Securities Brokerage company in Thailand• Managing Director of a Renewable Energy company in Thailand
Mr.Amorn SapthaweekulDeputy to CEO and Chief Finance Officer
Education• Master of Science from Chulalongkorn University, Thailand• Bachelor of Business Administration
(Finance and Banking) from Thammasat University, ThailandPrevious Work• Investment Banker and Financial Advisor,• Director in a Renewable Energy company
Our Business & Group Structure
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E@ “A leader in alternative energy business,
by using the modern technology and environmentally friendly”
BiodieselB100 Glycerin
Solar Power Wind Power Energy Storage EV Charging
201720162009 20152011
EV & Green Diesel & PCM
2018
Renewable Power Plant
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AGENDA
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Over View
Our Power Business
Our Biodiesel Business
Our Financial Results
Our Growth
Solar
42%Wind
58%
Our Capacity
7
664278 MWh
386 MWh
+ 8MWLopburi
+ 90MWNakornsawan
+ 90MWLampang
+ 90MWPhitsanulok
+ 126MWHad Kanghan(Songkla &Nakornsritammarat)
+ 260MWHanuman(Chaiyaphum)
Electricity Price Structure
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Base
Tariff
Adder10 years
from COD
FtFuel
Adjustment
Charge
Baht/
kWh
-0.159 Bt./kWh For May – Dec 2018
Peak Time: Weekdays
09.00 –22.00
4.2243 Bt./kWh
Off-Peak Time: Weekdays
22.00 – 09.00 + Weekend + Holidays
2.3567 Bt./kWh
Solar Wind
8 Bt. 6.5 Bt. 3.5 Bt.
Lopburi8 MWh
Until Oct 2022
Nakornsawan90 MWh
Until Dec 2023
HKH 1 = 36 MWhUntil Mar 2027
Lampang90 MWh
Until Feb 2025
HKH 2&3 = 90 MWhUntil Jun 2027
Phitsanulok90 MWh
Until Apr 2026
Hanuman Projects260 MWh
Solar Power 278 MW
1 acre = 2.529 rais 9
Nakornsawan (THB 6.7 bil)
Contracted Cap: 90 MW
Installed Cap : 126.126 MW
Technology: Fixed system
COD : 23 Dec 2013
Land area: 1,858 Rais (735 acres)
Adder : 6.50 baht/kwh
Lopburi (THB 812 mil)
Contracted Cap: 8 MW
Installed Cap : 9.33 MW
Technology: Fixed System
COD : 17 Oct 2012
Land area: 315 Rais (124.5 acres)
Adder : 8 baht/kwh
Phitsanulok (THB 9.5 bil)
Contracted Cap: 90 MW
Installed Cap : 133.92 MW
Technology: Tracking system
COD : 1 Apr 2016
Land area : 1,800 Rais (732 acres)
Adder : 6.50 baht/kwh
Lampang (THB 8.07 bil)
Contracted Cap: 90 MW
Installed Cap : 128.396 MW
Technology: Tracking system
COD : 17 Feb 2015
Land area : 2,354 Rais (930 acres)
Adder : 6.50 baht/kwh
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3 4
Wind Power 386 MW
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Hanuman : HNM
(Chaiyaphum)
THB 20 bil.
Contracted Cap: 260 MW
SCOD : Q4/2018
Adder : 3.50 baht/kwh
Status: During Construction
2 Hadkanghan : HKH
(East Coast Southern)
THB 10.4 bil.
Contracted Cap: 126 MW
COD :
HKH 1 = 36 MW COD 3 Mar 17
HKH 2 = 45 MW COD 10 Jun 17
HKH 3 = 45 MW COD 23 Jun 17
Adder : 3.50 baht/kwh
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Project Specification :
Technology from
Siemens Gamesa, Spain
103 sets of Wind Turbine
Generator at 2.5 MWh each
Hub height 163 m.
Blade length 67 m.
Cut in wind speed = 3 m/sec
Project Specification :
Technology from
Vestas, Denmark
70 sets of Wind Turbine
Generator at 1.8 MWh each
Hub height 137 m.
Blade length 51 m.
Cut in wind speed = 3 m/sec
Output from power production
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
P90 (Base case) P50 (Best case)
Total Capacity : YOY
Total Capacity : QOQ
In Q3/2018 : Full operation of 4 Solar Power Plants and 3 Wind Power Plants
with the total contract capacity of 404 MWh
Power production output from Wind Power Plants QoQ increased 139.58%
due to strong wind speed, average capacity factor in Q3/2018 = 41.68%
(Q3/2017 = 29.32%) and for 9m/2018 = 28.18%
Power production output from Solar Power Plants decreased QoQ 16.05% and
YoY 7.486% due to longer period of raining days.
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AGENDA
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Over View
Our Power Business
Our Biodiesel Business
Our Financial Results
Our Growth
Biodiesel Production
Add a footer 13
Location Kabinburi Industrial Estate, Prachinburiunder BOI promotion & privileges
PlantCapacity
• Biodiesel 800,000 Liters per day• Pilot production of green diesel/PCM 1 Ton per day• Refined Glycerin 80 Tons per day (by product)
• B100 volume 9m/2018 = 120.29 mil.liters decreased 5.13%.
• Blending of B100 to high speed diesel = 7-20%
• Glycerin volume 9m/2018 = 8,980 tons increased 6.65% price increased 27.20% due to stronger demand
Oleochemicals : Green Diesel and PCM
Add a footer 14
Green Diesel or Bio Hydrogenated Diesel (BHD) : Advance product of biodiesel
Green Diesel and PCM : Total feed capacity130 tons/day Total Investment of New Plant in Rayong THB 2 bil.
Started pilot plant in Q2 with production capacity of GD at 1 liter/hour and PCM at 1 ton/day
Phase I : Capacity = 65 tons (feed)/day is during construction, to be completed within Dec 2019
Phase II : To be completed within Dec 2020
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AGENDA
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Over View
Our Power Business
Our Biodiesel Business
Our Financial Results
Our Growth
Strong Growth in Revenue and Net Profit
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• Total revenue for 9m/2018 was THB 9,717.20 mil. including accounting gain on a business combination (AMITA) THB 894.58 mil.
• Total revenue from normal operation for 9m/2018 was THB 8,822.62 mil. increased 1.20%
• Net profit from normal operation for 9m/2018 was THB 3,311.68 mil. increased 13.34%
• Incremental operating revenue and net profit resulted from full operation of power business, contributed from 4 Solar Power Plants (278 MW) and 3 Wind Power Plants (126 MW)
• Successful in power business strengthen operating EA’s cash flow of 9m/2018 to reach THB 5.56 bil.,which is planned to invest in new projects
Growth from Power Business
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Power Business : contribution 66% Total capacity was 404 MW comprised of
278 MW of solar and 126 MW of wind Solar : Total units sold decreased 5.63% resulted from lower of
solar radiation and heavy rain. But average selling price increased 1.12%
Wind : Total units sold increased 120.78% resulted from full operation and strong wind speed. And average selling price increased 0.96%.
Gross profit margin = 71.55% and EBT = THB 4,026 mil.
Biodiesel Business : contribution 31% B100 : Total sale volume decreased 5.13% due to high
competition. Average selling price decreased 19.46% resulted from over supply of crude palm oil that effected to the selling price.
Glycerin : Revenue from Glycerin increased 35.67% effected from the increase of sale volume by 6.65% and increase of selling price by 27.20% resulted from stronger demand in global market
Gross profit margin = 6.9% and EBT = THB 146 mil.
Total Total
Revenue Contribution
Effects on 9M/2018 Net Profit
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Solar
Gross Profit Increase
The increase of Admin Expense in 9M/2018 (YoY)
• Personnel expenses increased THB 81 mil due to business expansion.
• Admin expense from AMITA THB 79 mil. (49% of this item was R&D expense)
• PR and advertising expense increased THB 32 mil. due to activities to promote EA
Anywhere and MINE Mobility as EA’s strategic plan.
The increase of Financial Cost in 9M/2018 (YoY)
• The financial cost increased THB 7 mil. After COD of 126-MW
wind power plants, the financial cost incurred was recorded as
expense instead of asset as previously.
Source of Fund Management
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TRIS Rating has upgraded the company rating from “BBB+” to “A-”. The upgrade reflects the enlarged cash flow from EA’s power portfolio and the improvement in financial profile
Times
Compare with peer companies
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Mil. Bt. Mil. Bt.
* Total revenue and net profit of EA included accounting item from acquired AMITTA THB 894.58 mil.(Excluded the item, total revenue rank is no. 8 and net profit rank is no. 4)
Total asset THB 56,036 mil. – No.8 Total liabilities THB 37,522 mil. – No.6 Paid up Capital THB 373 mil. - smallest Total shareholders equity THB 17,597 mil. - No.10 Total revenue THB 9,883 mil. – No.7 Net profit THB 4,206 mil. – No.4
Compare with peer companies
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The highest of Return on Equity at 32.53% Return on Asset 12.51% - No.4 Net Profit Margin 42.56% - No.5 NP of power business is 61.47% - Highest
Market Data : EA is the largest among Power Producers
22Source : The Stock Exchange of Thailand, as of 16 Nov 2018
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AGENDA
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5
Over View
Our Power Business
Our Biodiesel Business
Our Financial Results
Our Growth
New chapter of EA
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E@ “A leader in alternative energy business,
by using the modern technology and environmentally friendly”
BiodieselB100 Glycerin
Solar Power Wind Power Energy Storage EV Charging
201720162009 20152011
EV & Green Diesel & PCM
2018
Renewable Power Plant
Start investing in energy storage business : Amita Technologies Inc.
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Investment in Amita
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Jan 2017
EA subscribed new shares from capital increase, proceed for capacity
expansion.
Nov 2017
EA acquired shares from Taiwan Emerging Market
Apr 2018
Voluntary Offer shares from general shareholders35.20% 50.69% 69.99%
17.68 mil.shares@35 = NTD 618.92 mil.
(THB 685.91 mil.)
7.78 [email protected] = NTD 273.87 mil.
(THB 301.27 mil.)
9.70 mil.shares@80 = NTD 775.84 mil.
(THB 844.11 mil.)
Fair value of equity interest (50.69%)Book value of equity interest (50.69%) Fair value of equity interest Less FX loss Accounting gain
= 1,821.695= 911.135= 910.560
(15.983)= 894.577
The patents and brand are amortized based on its estimated useful life which is 20 years. Goodwill is not amortized but is tested for impairment annually.
Patents 805.776 mil. Brand 277.869 milGoodwill 962.546 mil.
Patents & Certificates
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50 GWh Energy Storage Factory
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1 GWh Total of 50 GWh 2017-2018
Phase I : EA groupStart developing of
1 GWh worth THB 4 bil.
2H/2019Phase II : Partnership
investment of 49 GWh worth THB 98 bil.
2021Phase I :
Start commercial operation
The production in Phase I at 1 GWh will be served to power plant to stabilize production and distribution both
domestically and internationally.
The production in Phase II to reach the total of 50 GWh will cover to other
industries including EV.
Energy Storage Applications
Source : Silicon Valley Bank- Energy Storage Overview29
StationaryMobile
On/Off grid StorageElectric Transport Electronic Devices
Storage for utilities
Used to shift energy produced
Useful for integrating intermittent energy source
Provide grid stability and range of other benefits
Batteries for plug-in electric vehicles
Batteries for hybrid vehicles
Batteries for other electric vehicles (buses, train etc)
Mobile Phones, Smart phones
Laptops
Power tools
Mobile games
Energy Requirements (kW or MW)
Technology & Market Maturity LowHigh
Low High
Phase I : 1 GWh Energy Storage Factory
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EA
Amita Taiwan
Amita New Technology Pte.Ltd.Singapore
70%
100%
Financial Support
from Financial Institution
Technical Support
from Strategic Partners
Management & Public
30%
Amita Technology (Thailand)Phase I : 1 GWh
100%
2018 Taiwan Business Alliance Conference
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President Tsai Ing-wen and Somphote Ahunai in “2018 Taiwan Business Alliance Conference”
MOEA confirms its intention to provide information/solution/assistance for EA ’s intended activities; refer companies/investmentopportunities to EA ; and facilitate the technical and/or economic cooperation/coordination/liaison between EA and other Taiwanese companies. MOEA desires to encourage EA to foster its long-term cooperation with Taiwanese companies.
The Government of Taiwan invited EA to sign Letter of Intent between EA and the Ministry of Economic Affairs (or MOEA), Taiwan in "2018 Taiwan Business Alliance Conference" on 8th October 2018, chaired by President Tsai Ing-wen.
Add a footer32
MOU signing between the Industrial Technology Research Institute (ITRI), EA and Amita, Taiwan to co-develop new technology of battery with high
safety for EA’s new battery factory, the 50 GWh factory
ITRI, a nonprofit R&D organization of Taiwan, has played a vital role in Taiwan's economic growth, strengthen capabilities of multidisciplinary innovation and cooperation with international partners all over the world.
MOU signing in May 2017 and April 2018
EA’s 50 GWh energy storage factory is strongly supported by the government under BOI best
scheme and EEC promotion.
Opportunity of Renewable Energy + ESS
Source: Cleantechnica.com 33
Energy MahanakornTarget 1,000 EV Charging station
https://www.eaanywhere.com 34
Partnership investment between EMN and landlord in order to secure strategic location to serve EV in the near future.
MOU with TCC Group
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6 Nov 2018 : MOU with TCC GroupTo install charging station at Southeast Headquarter (Silom) and other places of TCC Group.
To stimulate the growth of Thailand’s EV in the future.
MINE Mobility : Mission No Emissionin Bangkok International Motor Show 2018
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Range : 200-250 km per charge
MOU with Korean Partners
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12 Jul 2018 : MOU with KEPCO KDN Co., Ltd. and ILJIN Power Co., Ltd.To join hands together in order to find opportunities for cooperation
in energy related businesses such as Power ICT and renewable energy including photovoltaic power plant in Thailand and nearby countries.
Investment Plan for 2018-2019
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Investment Plan Progress / Target Source of Fund
Biodiesel Business
(Including Expansion + Green Diesel + PCM)
Start commissioning of PCM in Dec 2018
To be completed in 2019
Internal cash + long term debt
Wind Power Plant
Hanuman Project 260 MWh
Completed construction
To be COD in Q4/2018
On Shore 5,000 : Internal Cash
WTG 10% deposit in 2017 : Internal Cash
WTG 90% due in Mar 2019 : Long Term Debt)
Energy Storage Phase I : 1GWh
(Including infrastructure)
Order machinery, During construction
To be completed in 2H/2019
Internal cash + long term debt
EV Charging 1,000 stations Achieved 200 Stations in 2018 Internal cash
R&D Battery / Green Diesel / EV / New Project Internal cash
Net cash THB 3,600 mil.
Operating Cash in Flow in 2018 THB 8,000 mil.
New issue of Debentures or Long term financing
THB 20,000 mil.
Progress of Project
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Green Diesel & PCM• Building Pilot Plant for Green Diesel 1 liter/hour and PCM 1 ton/day• Preparing for factory construction / purchasing equipment and machine• Processing for engineering design within April 2019
Wind Power: HANUMAN• Construction on plan
• Preparing for transmission line – the last process• To be COD in the Dec 2018 – Jan 2019
Energy Storage System• Phase I for 1Gwh: During construction of foundation and pedestal• Purchased machine and Preparing for business structure• Signed MOU with ITRI & Amita and LOI with Taiwan / Presenting Project in TI Expo 2018
EV Charging Station• 6 Nov 18: installed 155 stations, on process 10 stations and preparing 22 stations• 6 Nov 18: MOU with TCC Group for install EV charging station
Mine Mobility• Designed 3 models EV car and presented in Bangkok International Motor Show
2018 in March• Preparing for production and commercial in the end of 2019
Thank youE n e rg y A b s o l u t e P C L
