Corporate Presentation DBS Vickers Pulse of Asia Singapore. 6 th January 2017

Transcription

1 Corporate Presentation DBS Vickers Pulse of Asia Singapore 6 th January

2 THB / Share GPSC has been included in FTSE Index in 3Q16 to reflect stock s performance SET50/SET100 Index Calculated from the stock price of the top 50 and top 100 listed companies on SET in term of : Large market capitalization High liquidity High turnover Compliance with requirements regarding the shares distribution of minority shareholders (Free float 20%) GPSC s Stock Price (May 15 December 16) Best CFO Award (15 Jul 2016) Ranked Excellent for CGR Scoring (26 Oct 2016) Investors Choice Award (27 Jul 2016) Most Progress IR (1 Dec 2016) First trading Day (18 May 2015) Global Small Cap Indexes (30 Nov 2015) Included in SET100 (4 Jan 2016) ESG 100 (29 Apr 2016) Included in SET50 (4 Jul 2016) Asia Pacific ex Japan Small Cap (19 Sep 2016) 20 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 IPO in May 2015, GPSC have been growing our business with continuously increased market capitalization. Starting from November 2015 where GPSC has been included in the Global standard, namely MSCI Index and recently in September 2016 GPSC is just included in FTSE Index. GPSC was classified to be in SET100 in January 2016 and then in July 2016, progressed to be qualified in SET50. In April 2016, GPSC has been shortlisted in ESG 100 with sustainable business awarded by Thaipat Institute. In 2H/2016, GPSC s CFO received Best CFO Award from Investment Analysts Association. The company also received Investors Choice Award from Thai Investors Association, ranked Excellent for CGR Scoring by Thai Institute of Directors and GPSC IR team received Most Progress in IR Award from IR Magazine. These are the results of confidence on GPSC performance from all stakeholders. 2 2

3 GPSC s Awards and Recognitions 15Jul16: SET congratulates GPSC on being listed in SET50 29Apr16: Listed on 2016 ESG 100 Sustainable Business 14Jul16: Best CFO Award from Investment Analysts Association 27Jul16: Investors Choice Award from Thai Investors Association 3 3 1Dec16: Most Progress in IR Award from IR Magazine

4 Thailand Power Industry Overview Financial Performance Key Takeaway 4

5 Current Power Industry Structure in Thailand Click to edit Master title style EGAT and IPPs dominate electricity generation market, with the combined market share 72%. 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 Actual Energy 189,264 Gwh in 2016 Thailand Generation EGAT (36%) IPPs (36%) Imports (10%) SPPs (17%) VSPPs (<1%) Cogeneration Plant Transmission EGAT (99%) ERC (Regulator) Distribution MEA (30%) PEA (69%) Definition EGAT IPP SPP VSPP MEA PEA End User (99%) Provincial Electricity Authority 18/01/60 5 Source: EGAT, Company Electricity Generating Authority of Thailand Independent Power Producers Small Power Producers Very Small Power Producers Metropolitan Electricity Authority Industrial User (1%) 5 Thailand Power Industry Overview

6 Power Plant Definition and Revenue Structure Click to edit Master title style IPP SPP VSPP Independent Power Producer (IPP): A larger power producer who has electricity capacity more than 90 MW IPPs are obliged to sell their entire output to EGAT Small Power Producer (SPP): A small power producer who sell their electricity no more than or equal to 90 MW to EGAT SPP Type Firm : Contract Term > 5 Years Non-Firm : Contract Term <= 5 Years SPPs can sell their electricity and steam to industrial customers located next to the SPP plant Very Small Power Producer (VSPP): A very small generator whose power generating process is generated from renewable energy, specific fuels, and energy with no more than 10 MW of electricity capacity VSPPs are able to sell power to the Distribution Utility Availability Payment Availability % x Availability Payment Rate (APR) Energy Payment Energy cost regarding % Dispatch to EGAT 18/01/60 6 Firm Non-Firm Electricity Steam EGAT (Power) Capacity Payment K factor (seasonal weight) Industrial Customers Energy Payment Energy Payment PEA tariff TOU Rate 4.2* Steam Base Cost x (Gas index + CPI index) * Reference rate with conditions Base Tariff 6 Thailand Power Industry Overview Ft Feed in Tariff adder

7 Pricing structure for each type of GPSC s power plant Click to edit Master title style GPSC s Business Portfolio Luangphabang Pricing Structure Sriracha Rachaburi Power Xayaburi Power 700 MW 1,400 MW 1,285MW Loei 2 (A.Tha Li) 500 KV Vientiane IPP/Import = Availability Payment + Energy Payment Investment cost Equity Return Financing Cost Fix O&M Fuel Cost Variable O&M Khon Kaen 4 SPP (firm) = Capacity Payment + Energy Payment Nava Nakorn Electricity Generation 125 MW 30 T/h Bangpa-in Cogeneration Phase 1 : 117 MW Phase 2 : 117 MW 20 T/h 20 T/h IRPC Clean Power 240 MW 300 T/h KM Vary by type of fuel & Contract Period FX adjustment Vary by type of fuel Fuel adjustment Cogen (SPP non-firm) = K factor(seasonal weight) x EP CUP 1-4 Cogen (Sell to IU) = Electricity + Steam 384 MW 1,410 T/h Base Tariff (PEA : TOU 4.2) + Ft Cost Plus Basis Chantaburi s Shrimp Farmer Cooperative 5 MW Thai Solar Renewable 80 MW VSPP Renewable = Base tariff + Ft +Adder VSPP Renewable = FiT Japan : ISP MW Lao PDR : NL1PC 65 MW 18/01/60 7 Renewable = FiT Renewable = Fixed Rate with escalation 7 Thailand Power Industry Overview

8 Natural gas and Renewable will be major sources of fuel in Thailand in 2036, together accounted for over 70% Click to edit Master title style According to Thailand s Power Development Plan 2015 (PDP - by Energy Policy and Planning Office (EPPO), Ministry of Energy), power plant capacity in Thailand will generate 326,119 GWh of electrical energy by the end of 2036, which accounted for 2.6% CAGR Natural gas will still be a major source of fuel, accounted for 36.8% of total energy production The reserve margin from is higher than EGAT s suitable reserve margin of 15%; implying that in the next 15 years the demand of electricity will significantly increase Thus, electricity generating need to be prepared to ensure an appropriate level of country s electricity demand and supply Projected Electricity Generating by source of fuel (GWh) Reserve margin 350, , ,285 *Others 172 **Nuclear power 16,094 19,341 Total capacity 326,119 GWh 0.1% 4.9% 5.9% Others Nuclear power Lignite 250,000 *Others 54, % Coal 200, ,000 1,459 (0.8%) 20,183 (10.6%) 18,287 (9.6%) 28,175 (14.8%) Lignite Coal Import & Renewable 115, % Import 15% Renewable 20% 100,000 50, ,180 (64.2%) Natural gas 120, /01/ Thailand Power Industry Overview Remark: *Others are Fuel oil, Diesel, Thai-Malaysian gas pipeline which account for less than 1% of total capacity, **New clear power is added into plan in 2035 with projected capacity of 8,024 GWh Source: Power Development Plant Energy Policy and Planning Office (EPPO), Ministry of Energy) 36.8% Natural gas

9 80,000 Large opportunity for GPSC to tap in those expected capacity Click to edit Master title style Projected Power Plant Capacity by producer type (MW) 43,624 (100%) Total capacity 70,335 MW Thailand's power contract capacity during (new and retired) Unit: MW 60,000 40,000 20,000 3,387 (7.8%) 4,406 (10.1%) 5,519 (12.7%) 14,767 (33.8%) Imported VSPP SPP IPP 12,347 11,765 8,210 10, % Imported 16.7% VSPP 11.7% SPP 14.7% IPP 39.3% EGAT 43,624 (24,736) +51, , ,792 70, ,545 (35.6%) EGAT 27, % CAGR of the power generating capacity by producer type is expected in PDP 2015 By 2036, Imported & VSPP will increase its portion to 34.3% of the total generating capacity which is nearly to EGAT s at 39.3% During there is a large amount of new contract capacity at 20,655 MW for GPSC to tap in Peak demand in 2016 occurred at night because more than 1,200 MW of electricity produced from solar power plants in day time that distributed to MEA and PEA replaces production from EGAT IPP which this portion of electricity is not recorded by EGAT to accumulate the peak demand causing peak demand to shift from day to night time. 18/01/60 9 Source: Power Development Plant Energy Policy and Planning Office (EPPO), Ministry of Energy, as of June 20, Retired capacity New capacity Total capacity Thailand Power Industry Overview

10 Thailand Power Industry Overview Financial Performance Key Takeaway 10

11 Petroleum Authority of Thailand PCL (PTT), GPSC s parent company, is the largest energy conglomerate in Thailand PTT-Operated Business Gas Business Unit Oil Business Unit The entire chain of natural gas from exploration and production, procurement, transportation to gas separation and marketing of natural gas Engaging in marketing and distribution of refined fuels, LPG and lubricating products International Trading Business Unit A fully international trading business covering procurement, international trading of crude oil, condensate, petroleum, petrochemical products as well as other specialty substances Infrastructure Business Unit Engaging in maximizing efficiency of infrastructural asset management and promote proficiency in professional project management such as land development businesses, standards and operating systems for sustainability, engineering and maintenance services etc. Business invested through PTT Group companies Petroleum exploration and production (E&P) PTT conducts the exploration and production business (domestic and international) through PTT Exploration and Production PCL (PTTEP) Coal Business PTT invests in the coal business and coal mining business in Indonesia for sale to China, Korea, Japan, and Taiwan through PTT Energy Resources Co., Ltd (PTTER) Power Business PTT engages in the power business through Global Power Synergy PCL (GPSC) As PTT s power-business flagship, GPSC produces public utilities (electricity, steam, demineralized water, chilled water) for industrial users and Electricity Generating Authority of Thailand (EGAT) Petrochemical & Refining Business PTT invests through 10 subsidiaries in doing Petrochemical & Refining Business The scope is from fuel processing, production and sales of upstream, intermediate, and downstream petrochemicals, together with various polymers, worldwide marketing business, and integrated logistical services Source: PTT s Nature of Business, PTT s Annual Report

12 1997 Introduction to GPSC, a PTT Group s Power Flagship GPSC has been founded to be the power flagship of PTT Group. In , PTT Group were restructured and transferred Power Assets to GPSC. The integration results in a total generating capacity of 1,851 MW of electricity; thereafter GPSC has acquired more to have 1,922 MW of committed electricity, 1,582 tons per hour of steam, 2,080 cubic meters per hour of industrial water and 12,000 refrigeration tons of chilled water. KEY MILESTONES Established Sriracha Power Plant (700 MW, IPP) Established Rayong Power Plant (339 MW, SPP) Consolidated all PTT s power asset under GPSC Transferred 8 of PTT s power assets to GPSC Asia Pacific ex Japan 2016 Complete COD of total electricity capacity of 1,922 MW2019 Market Cap* USD 1.56 BN or 0.4% of SET PTT Group s Power Flagship, Listed on Stock Exchange of Thailand Global Small Cap Indexes Independent Power (Thailand) PTT Utility GPSC s Pre-listed Shareholding 56% 24% 24% 20% 60% 40% 30% 30% 28% 12% * Dated 9 November 2016 at USD/THB 35 12

13 Vision & Mission GPSC s Shareholding Structure Vision Public 25.0% 22.7% Being Global Leading Innovative Power and Utility Management Flagship of PTT Group delivering the sustainable value to all stakeholders 8.9% 22.6% Mission 20.8% Create long term shareholders value with profitable growth. Delivery reliable energy through operation excellent to customer. Conduct business with social and environmental responsibility Seek for innovation in power and utility efficient management through Energy Storage Technology/ Smart Grid/Smart City 13

14 Capacity GPSC s facilities produce electricity of 1,922 Equity MW (2,318 Equity MW equivalent ; electricity 1,922 Equity MW, steam 1,582 T/H) BUSINESS PORTFOLIO Combined Cycle / Cogeneration Renewable Energy Hydroelectric Other Businesses Electricity 1,517 MW Steam 1,582 T/H Industrial Water 2,080 Cu.m./H Chilled Water 12,000 RT ELECTRICITY 1,922 MW (operate 1,381 MW, under constriction 541 MW) Electricity 58 MW Electricity 347 MW 24M Technologies, Inc. (USA) Business Service Alliance Co.,Ltd. STEAM 1,582 T/H (operate 1,441 T/H) ELECTRICITY CAPACITY BREAKDOWN Unit: Megawatt Renew & Hydro 21% VSPP 0.003% INDUSTRIAL WATER 2,080 Cu.m./H CHILLED WATER 12,000 RT 1,922 Equity MW SPP 31% IPP 48% IPP Independent Power Producers SPP Small Power Producers VSPP Very Small Power Producers Electricity 1,922 Equity MW, Steam 1,582 T/H (or equivalent to 2,318 Equity MW) 14

15 500 KV GPSC s Business Portfolio : 12 Affiliates in 4 Countries Combined Cycle / Cogeneration Renewable Energy Sriracha Power Plant (IPP) 100% Combined Heat and Power Producing (VSPP) 100% Thai Solar Renewable 40% (VSPP) Electricity: 700 MW Industrial water: 80 Cu.m./h Electricity: 5 MW Chilled water: 12,000 RT Electricity: 80 MW Rayong Power Plant (SPP Non-firm) 100% Nava Nakorn Electricity Generation (SPP Firm) 30% Ichinoseki Solar Power 99% CUP 1-3 Electricity: 339 MW Steam: 1,340 T/H Industrial water: 2,000 Cu.m./h CUP-4 (SCOD in Q1/2018) Electricity: 45 MW Steam: 70 T/h Electricity : 125 MW Steam: 30 T/h Bangpa-in Cogeneration (SPP Firm) Phase 1 Electricity: 117 MW Steam: 20 T/h 25% (SCOD in Q4/2017) Electricity: 20.8 MW CHPP Solar Cooperatives (VSPP) Electricity: 5 MW 100% IRPC Clean Power (SPP Firm) 51% Total Electricity: 240 MW Steam: 300 T/h Phase 1 COD Electricity: 45 MW Steam: 170 T/h Phase 2 under construction (SCOD in 2017) Phase 2 (SCOD in June 2017) Electricity: 117 MW Steam: 20 T/h Ratchaburi Power (IPP) 15% Electricity: 1,400 MW Hydroelectric Xayaburi Power (IPP) 25% (SCOD in October 2019) Electricity: 1,285 MW Business Service 25% Alliance 15 Other Businesses 24M Technologies 15.8% Nam Lik 1 Power 40% (SCOD in 2018) Electricity: 65 MW Project under construction Upcoming COD by 2017 Loei 2 (A.Tha Li) 0

16 Summary of GPSC Power Plants Details Name Type Equity GPSC s Total capacity Steam Industrial capacity water (MW) share % (MW) (T/H) (Cu.m/H) COD Tenor IN OPERATION Sriracha IPP 100% /2025 CUP-1 SPP 100% / CUP-2 SPP 100% / CUP-3 SPP 100% / CHPP VSPP 100% /2038 IRPC-CP Phase 1 SPP 51% /2040 CHPP (Solar) VSPP 100% Consolidate to Financial Statement TSR Renew 40% /2038 NNEG SPP 30% /2041 BIC-1 SPP 25% /2038 RPCL IPP 15% 1, /2033 Share of Profit / Dividend Income Total operating 1,381 1,441 2,080 UNDER CONSTRUCTION CUP-4 SPP 100% ISP1 Solar 99% /2037 IRPC-CP Phase 2 SPP 51% /2044 NL1PC Hydro 40% /2044 BIC-2 SPP 25% /2042 XPCL IPP 25% 1, /2048 Total under construction Total capacity 1,922 1,582 2,080 Electricity 1,922 Equity MW, Steam 1,582 T/H (or equivalent to 2,318 Equity MW) 16

17 Majority of GPSC s revenue is from electricity, PTT Group is GPSC s major customer In Operation : 1,736 Equity MW equivalent (Electricity 1,376 Equity MW, Steam 1,441 T/H) ELECTRICITY CAPACITY BREAKDOWN Unit:Equity Megawatt VSPP 1% SPP 31% Renew 2% 1,381 Equity MW IPP 66% Total Equity GPSC s Name Type capacity capacity Steam share % (MW) (MW) (T/H) IN OPERATION Sriracha IPP 100% CUP-1 SPP 100% CUP-2 SPP 100% CUP-3 SPP 100% CHPP VSPP 100% 5 5 IRPC-CP Phase 1 SPP 51% CHPP (Solar) VSPP 100% 5 5 Consolidate to Financial Statement TSR Renew 40% NNEG SPP 30% BIC-1 SPP 25% RPCL IPP 15% 1, Share of Profit / Dividend Income Total operating 1,381 1,441 9M16 Revenue by product (THB million) Industrial water 1% Steam 33% 17 Chilled water 1% Electricity (IPP) 28% Total 16,214 Electricity (SPP+IUs) 37% Electricity and Steam are major source of GPSC s revenue, accounted for 98% of total revenue. 9M16 Revenue by customer (THB million) Non PTT Group 8% EGAT 35% Others 1% Total 16,214 PTT Group 56% Accounted for more than 50% of total revenue, PTT Group is the largest customer of GPSC in 9M/16.

18 CHPP Solar Cooperatives has started COD as planned with the first full quarter to realize revenue in Q CHPP Solar Cooperatives Chanthaburi Province CHPP Solar Cooperatives starts COD on 30 December 2016 as planned with operating capacity of 5 MW Securing Feed-in-Tariff (FiT) at 5.66 THB per unit along 25 years of contract with Provincial Electricity Authority (PEA) Q will be the first full quarter that performance of CHPP Solar Cooperatives will be consolidated to GPSC 18

19 COD in 2017 CHPP Solar Cooperatives Successfully COD Bangpa-In Cogeneration Company Limited (BIC) Phase 2 Type Capacity Customer Solar Electricity: 5 MW PEA COD 30 December, 2016 Total Investment Contract 244 THB million FiT THB 5.66/unit 25 years End 2041 Type Capacity SPP Electricity: 117 MW Steam: 20 T/h Customer Electricity: EGAT 90 MW (25 years), IUs 27 MW Steam: IUs 20 T/h SCOD 2017 Total Investment D/E 3:1 5,340 THB Million % Progress as of Nov 16 Nov,16 81% 3Q16 78% IRPC Clean Power Company Limited (IRPC-CP) Phase 2 Ichinoseki Solar Power 1GK (ISP1) Type Capacity Customer SPP SCOD 2017 Total Investment D/E 3:1 Electricity: 240 MW Steam: T/H Electricity: EGAT 2x90 MW (25 years), IRPC 60 MW (27 years) Steam: IRPC T/H 13,600 THB Million % Progress as of Nov 16 Nov 16 92% 3Q16 90% Type Solar Capacity Electricity: 20.8 MW Customer SCOD 2017 Total Investment D/E 4:1 Tohoku Electric Power (20 years) ~10,000 JPY million % Progress as of Nov 16 (Land Preparation) Nov 16 93% 3Q16 84% 19

20 GPSC will deliver outstanding growth during Secured Electricity MW Completed projects GPSC s Committed Capacity Unit: Equity MW Unit: Equity MW 38 1,338 1, CUP-4 1,530 1, Loei 2 (A.Tha Li) 500 KV Luangphabang 1,922 Vientiane (Solar) Khon Kaen Secured equity steam Completed projects KM Unit: T/h CUP-4 1, , , ,582 1,

21 Growth Strategy Growth on Equity MW GPSC s Target Growth Unit: Secured MW 1,922 Growth along with PTT Group CUP-4 and Expansion Growth domestically and internationally along with upstream and downstream business of PTT Group Focus on SPP and Cogeneration as utilities provider along with PTT group presence Quick Win Renewable Energy M&A Renewable business Acquisition of operating/ under-construction assets Coal Big Win International Gas Investment in international mega projects 2016 Adjacent & Support Opportunities Energy Storage technology Operation and Maintenance services Transmission and Distribution business 21

22 Research & Development 24M Technologies, Inc. (24M) Cambridge, Massachusetts (MA), USA Business Application Lithium Ion Battery (LFP) technology Energy Storage System (ESS) M was established Developed 5x thicker electrodes than previously possible Progress update Developed end to end cell production Automated line eliminates coating, drying etc. Invested > $50 to make 9000th full size cell Proven key high volume unit operation High volume manufacturing production line 24M has signed an MOU with NEC Energy Solutions (NECES) to supply Semisolid Lithium-Ion battery to NECES energy storage system. Currently, 24M is working on the development of High Volume Manufacturing production line. Awards & Recognition In 2016, 24M has received many awards and recognition from the industry including: Energy Innovation Pioneers: CERAWEEK, HIS Energy New Energy Pioneers: Future of Energy Summit, Bloomberg New Energy - Listed in 50 Smartest Companies 2016 : MIT Technology Review - Best Technical Development within Energy Storage IDTechEx Awards Shareholding Structure Others 85% Total Investment of GPSC Portion 15% ~22 USD million

23 Waste to Energy Project Waste Management Project Rayong Province Type RDF Waste to energy Power Plant (Future Development) Capacity Treat MSW at least 500 ton/day Electricity 8 MW Customer RDF Power Plant/ Cement Plant PEA SCOD Contract Waste Management Contract between GPSC & Rayong PAO (Secured feedstock) PPA under Feed-in-tariff scheme Progress update Shareholding Under the Public and Private Partnership (PPP), the Waste Management Contract is being proved by the Attorney General Thailand During process of apply PPA under Feed-in-tariff scheme ESA/CoP has been finished Completed Basic Engineering Design Package (BED) December 28, 2016, GPSC already signed the Rayong Integrated Waste Management by Private Operator Contract (by converting to RDF) with Rayong Provincial Administration Organization for 22 years 100% Remark: MSW = Municipal Solid Waste PAO = Provincial Administrative Organization 23

24 Strategic Country Selection Investment focus: Hydro power plant GPSC focus: Control committed project to achieve schedule Investment focus: Conventional Power Plant Laos Battery of ASEAN Indonesia PTT s footprint GPSC focus: Synergy with PTT Upstream Business PTT has already invested in two coal mines in Indonesia GSPC will take this opportunity to explore other energy investments through the connection and local accessibility. Myanmar Gas to Power Investment focus: Both conventional and renewable energy sources are promoted Transmission Line GPSC focus: Synergy with PTT Upstream business (NG) It allies with Myanmar s government to explore other forms of energy production Japan Keeps expanding Investment focus: Solar power plant Other renewable power plant GPSC focus: Control committed project to achieve in both budget and timeframe. Expand investment solar business 24

25 Target 10% of Renewable energy and 30% of International projects in GPSC s Portfolio Committed Portfolio (MW) Expected Portfolio (MW) Solar 3% Biomass 2% Waste to energy 1% Other Renew 2% Solar 5% Coal 12% Hydro 18% Total 1,922MW Hydro 12% Natural gas 66% Natural gas 79% International 30% Domestic 70% 25

26 2016 Interim dividend payout ratio is 43% of 1H/2016 net income Unit: Baht per share Final Dividend Interim Dividend On 18 August 2016, BOD approved a resolution for the payment of interim dividend for 1H/2016. The dividend per share is 0.45 Baht which is higher than 2015 interim dividend, resulting from the better operating results. The Record Date will be on 1 September 2016 for the right to receive the dividend. The dividend payment date will be on 14 September The dividend will be paid from the tax exemption profit portion wherein individual shareholders shall not include as taxable income and not be entitled to a dividend tax credit. 13-Aug Feb Aug-16 Dividend from Year 2015 Operating performance Declaration Date Dividend from 1H/2016 Operating performance Dividend Policy : Minimum of 30% of net income according to a financial statement, after deductions of tax, reserve capital requirement (with additional conditions) Remark: *Dividend yield calculated from Accumulated dividend declared amounts for the last 12 months/stock closing price on the period end date 26

27 Thailand Power Industry Overview Financial Performance Key Takeaway 27

28 Q3/16 Revenue of THB 5,176 MM, decreased 7% QoQ Click to edit Master title style Quarterly revenue (THB MM) 4,629 3% 30% 4,802 2% 31% 34% 36% +12% YoY 5,484 5,553 2% 2% 31% 33% 38% 37% 33% 31% 29% 28% -7% QoQ 5,176 2% 36% 36% 25% 17,642 2% 26% 30% 42% -8% 16,214 2% 33 % 37 % 28 % Industrial + Chilled water Steam Electricity (SPP) Electricity (IPP) Q3/16 VS Q2/16 (QoQ) Operating revenue in Q3/16 decreased by THB 377 MM or 7%. The decrease was due to the decline in revenue from Energy Payment (EP), from the lower sales volume of Sriracha plant and the lower sales price due to the reduction of Ft. Q3/16 VS Q3/15 (YoY) Operating revenue in Q3/16 increased by THB 547 MM or 12%. The increase was due to higher sales volume of Rayong plant both from existing and new customers. 9M/16 VS 9M/15 Operating revenue in 9M/16 decreased by THB 1,428 MM or 8% from lower sales volume to EGAT of Sriracha plant and the declining in the sales price followed the reduction in gas price. Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 9M15 9M16 18/01/60 Remark: *Revenue from Electricity (IPP) includes income from electricity sales and finance lease. 28 Financial Performance

29 Q3/16 Revenue and GPM by Plant Click to edit Master title style Sriracha Plant (IPP) Rayong Plant (SPP) Total revenue & GPM (THB million, %) 9% 11% 10% -15% YoY -16% QoQ 1,545 1% 1,558 1% 1,314 99% 99% 100% Q3/15 Q2/16 Q3/16 Gross profit margin 7% 10% 7, % 9M15-40% 4,482 0% 100% 9M16 Industrial water Electricity Total revenue & GPM (THB million, %) 20% 26% 23% +9% YoY -4% QoQ 3,034 3,446 3,306 2% 2% 2% 46% 46% 48% 52% 53% 52% Q3/15 Q2/16 Q3/16 20% 25% 9,977 10,077 2% 2% Industrial water 45% 46% Steam 53% 52% Electricity 9M15 +1% 9M16 Gross profit margin IRPC-CP Phase 1 Plant (SPP) Total revenue & GPM (THB million, %) 31% 28% % 58% 49% 42% Q3/15 Q2/16 Q3/16 9M15 30% Gross profit margin 1,505 51% 49% 9M16 Steam Electricity QoQ: Total revenue was lower by 16% mainly from the decline in revenue of Energy Payment (EP) of natural gas cost which was resulted from dispatched instruction and lower weight factor from the decrease in demand of electricity consumption during rainy season. YoY: Total revenue decreased by 15%, mainly from electricity submitted volume to EGAT. 9M: Total revenue dropped by 40% because of the reductions in electricity sales volume submitted to EGAT by 40% and sales price by 5%. QoQ: Total revenue was lower by 4% due to the drops in lower sales volume to EGAT under SPP Non-Firm type with the lower k- factor (Seasonal weight) YoY: Total revenue slightly increased by 9%, mainly from rises in sales volumes of steam and electricity caused by the increasing of industrial customer demand. 9M: Total revenue slightly increased by 1% mainly from the increase in Industrial Users, with another factor that in August-September 2015 one of our major customer had a maintenance shutdown. QoQ: Total revenue increased by 2% mainly from the increase in sales volume of steam. 18/01/60 29 Financial Performance

30 Click to edit Master title style Quarterly gross profit and gross profit margin* (THB million, %) % 3% Gross profit improved 50% YoY, GPM improved to 21% from plant optimization and higher SPP s sales volume 15% 15% +50% YoY 1,188 2% 85% 22% 23% 20% 1,251 2% 83% -16% QoQ 1,046 2% 86% 15% 2,626 2% 77% +33% 21% 3,485 2% 84% VSPP SPP Q3/16 VS Q2/16 (QoQ) Gross profit in Q3/16 was THB 1,046 million decreased by THB 205 million or 16%. This mainly due to the lower sales volume and the increase in turbine maintenance cost at Rayong Plant. Q3/16 VS Q3/15 (YoY) Compare with Q3/15, gross profit increased by THB 347 million or 50%. The increase was from increase in revenue from sales of electricity and steam from the COD of IRPC-CP. 9M16 VS 9M15 Gross profit in 9M16 significantly increased by THB 859 million or 33%. Mainly due to the increase in sales volumes from SPP plants together with lower natural gas price and maintenance cost. 88% 78% 9% 19% 14% 14% 12% Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 21% 13 % 9M15 9M16 IPP 18/01/60 Remark: *Gross profit margin does not include depreciation and amortization expenses. 30 Financial Performance

31 Click to edit Master title style Quarterly EBITDA and EBITDA margin (THB MM, %) 12% 12% Q3/16 EBITDA strongly increased by 58% YoY with better EBITDA margin of 17% 19% 19% 17% 13% 18% Q3/16 VS Q2/16 (QoQ) EBITDA in Q3/16 was THB 870 MM decreased by THB 186 MM or 18% mainly due to the decrease in sales volume. +58% YoY -18% QoQ 1,039 1, , % 2,965 Q3/16 VS Q3/15 (YoY) Compare with Q3/15, EBITDA showed a strongly increase by THB 318 MM or 58%. The favorable outcome was mainly caused by the increase in sale volume from both existing and new power plants together with the drop in production costs resulting from the plant optimization M/16 VS 9M/15 EBITDA in 9M/16 significantly increased by THB 750 MM or 34%. The increase was mainly caused by the lower cost of raw materials from the drop in natural gas price. Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 9M15 9M16 18/01/60 31 Financial Performance

32 Net profit for 9M/16 for the company increased 45% from better operating results and dividend income Click to edit Master title style Quarterly net profit and net profit margin (THB MM, %) 11% % 11% 7% % 16% 13% 14% + 28% YoY +6% QoQ % % 13% 33% 8% 69% 87% 59% 8% 1,571 18% 15% 67% +45% 14% 2,281 18% 10 % 73 % Dividend income Share of profit of associates and joint ventures Earnings from operation of the company and subsidiaries Q3/16 VS Q2/16 (QoQ) Net profit in Q3/16 was THB 724 million increased by THB38 million or 6%. The increase due to the dividend income of THB 240 MM from affiliate Q3/16 VS Q3/15 (YoY) Net profit increase by 158 million or 28% The increase due to higher demand of electricity and steam volume from existing and new customers of SPP (Rayong Power Plant) and lower natural gas cost with better cost management. 9M/16 VS 9M/15 Net Profit in 9M/16 significant increased by Increase in earnings from production capacity expansion and cost optimization of SPP Rayong Plant and IRPC Clean Power Company Limited (IRPC-CP) Phase 1 which had COD in November 2015 Dividend income increase from affiliate for THB 420 million during 9M/16 38% 66% Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 9M15 9M16 18/01/60 32 Financial Performance

33 Summary of financial position of GPSC and its subsidiaries Click to edit Master title style Total Assets (THB MM) Total Liabilities & Shareholders equity (THB MM) +2% +2% Current assets 28% Investment in associates jointly ventures and other long term investments 15% 55,983 15,784 8,278 57,281 11,410 9,381 20% 17% 5% 27% 2% 55,983 2,958 14,989 57,281 2,502 15,718 5% 1% Other current liabilities 28% Long-term borrowing Other non-current liabilities Property, plant and equipment 42% 23,467 25,878 45% 66% 37,128 38,292 66% Equity Finance lease receivable 12% Other non-current assets 3% 6,929 6,536 4,076 11% 7% 31 Dec Sep Dec Sep 16 Total assets were THB 57,281 MM, increased by 2% from THB 55,983 MM. Increases in investments from the better operating result of the associates and JV Increase in assets under constructions of IRPC-CP Phase 2. Total liabilities were THB 18,989 million increased by THB 134 million or 1% mainly from the additional drawdowns of long-term loans for power plant constructions. Equity were THB 38,292 million increased by THB 1,164 million or 3% mainly from an increase in the unappropriated retained earnings. 18/01/60 33 Financial Performance

34 Well-managed debt profile and continuous deleveraging Click to edit Master title style Total interest-bearing debt: THB 15,718 million JPY THB 4% 96% Current portion of long -term loan Non-current portion of long-term loan 10% 90% Oct 17-Sep 21 53% Oct 16 Sep 17 10% Current portion THB 1,595 million After Sep 21 37% By currency By maturity o The debt balance of the company and its subsidiaries as at 30 September 2016 was in Thai Baht and Japanese Yen currency. o All interest-bearing debt is long-term debt, which includes 10% current portion. o Non-current portion of long-term debt was THB 14,123 million. o 53% of total long-term debt will be repaid between October 2017 to September /01/60 34 Financial Performance

35 Key financial ratios support GPSC s strong financial position Click to edit Master title style DSCR (Times) Total D/E and Net Debt/ Equity ratio (Times) Earning per share (EPS) (Baht/share) x 0.50x 0.50x 0.07x 0.13x 0.21x Q3/15 Q2/16 Q3/16 D/E ratio Net Debt/Equity ratio 2.75x* x 2.27x 1.83x Q3/15 Q2/16 Q3/ x* Q3/15 Q2/16 Q3/16 ROE (%) ROA (%) Book value per share (BVPS) (Baht/share) Q3/15 Q2/16 Q3/16 Q3/15 Q2/16 Q3/16 Q3/15 Q2/16 Q3/16 18/01/60 Remark: *D/E ratio of 2.75x and DSCR ratio of 1.05x are a maximum and minimum of financial covenant rate, respectively, according to the company s policy 35 Financial Performance

36 Thailand Power Industry Overview Financial Performance Key Takeaway 36

37 rowing Profit with Sustainability and Control Strategic Framework Click to edit Master title style GPSC is PTT Group s Power Flagship GPSC has been recognizing more revenue and stable growth in gross profit in which SPP plants contribute to higher gross profit compare to IPP. Currently GPSC s portfolio is in Thailand (one of the current largest consumers) and Laos PDR. However, there are also potential projects in Myanmar (the emerging and potential consumers of the region) Reliability Efficiency Manage Project Management Balance Growth and Return to Investors Cost Conscious Portfolio Management Maximize Move Operating Assets 100% Owner full control NG Conventional power plant Generate revenue & profit Portfolio Management Active or Passive Control Various types of business Operating asset and under construction More important impact in the future Business Development New Project Initiatives Battery technology business platform Various types of business Key driver of business growth Expectation from stakeholders 37 Key Takeaway

38 THANK YOU Global Power Synergy Public Company Limited 555/2 Energy Complex, Building B Vibhavadi Rangsit Rd. Chatuchak, Bangkok IR Contact Sukittee Chaiyarak Pimploy Wichienprakarn Juthamas Singanurak ir@gpscgroup.com Tel , , Disclaimer The information contained here is being furnish on a confidential basis for discussion purposes only and only for the use of the recipient, and may be subject to completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any security of engage in any transaction. The information contained herein has been obtained from sources that Global Power Synergy Public Company Limited ( GPSC ) considers to be reliable; however, GPSC makes no representation as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein. Any projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such projections, valuations and analyses may be based on subjective assessments and assumptions and may utilize one among alternative methodologies that produce differing results; accordingly, such projections, valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events. The recipient should make an independent evaluation and judgement with respect to the matters contained herein. 38