1Q18 results. Investor and analyst update. 16 th May PDF Free Download

1Q18 results Investor and analyst update 16 th May 2018

DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains forward-looking statements that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical fact contained in this presentation including, without limitation, those regarding Banpu Power s future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where Banpu Power participates or is seeking to participate and any statements preceded by, followed by or that include the words believe, expect, aim, intend, will, may, project, estimate, anticipate, predict, seek, should or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, which may cause the actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which Banpu Power will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as of the date on which they are made. Banpu Power does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. The information set out herein is subject to change without notice, its accuracy is not guaranteed, has notbeen independently verified and it may not contain all material information concerning the Company. Banpu Power makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one if many possible scenarios and should not be viewed as the most likely or standard scenario. No assurance given that future events will occur or our assumptions are correct. Actual results may materially differ from those provided in the forwardlooking statements and indications of past performance are not indications of future performance. In no event shall BanpuPower be responsible or liable for the correctness of any such material or for any damage or lost opportunities resulting from use of this material. BanpuPower makes no representation whatsoever about the opinion or statements of any analyst or other third party. BanpuPower does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or use of any such opinion or statement. Banpu Power s securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the securities lawsofany state of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of such act or such laws. This presentation does not constitute an offer to sell or a solicitation of an offer to buy or sell Banpu Power s securities in any jurisdiction. 2

1 2 Review of 1Q18 Operational performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 3 Financial performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated 4 Looking ahead Appendix 3

BPP: cash flow stability plus strong growth profile TOTAL EQUITY COMMITTED CAPACITY 2.79 GWe HIGH RETURN LOW STABILITY Operational BLCP 1,434 MW (50%) CHINA SOLAR 152 MW HONGSA 1,878 MW (40%) Development CASH FLOW SLG 1,320 MW (30%) JAPAN SOLAR 233 MW CHINA CHP 539 MWe UPSIDE POTENTIAL A well-balanced portfolio with all assets generating strong returns BLCP:High reliability resulting stable cash flow Hongsa:Becoming major earnings contributor to BPP with continuous improvement in efficiency and reliability China CHP: Ability to maintain profitability despite volatile coal cost. Sole supplier of steam in Luannan and Zhengding areas SLG: Using HELE technology and supplying electricity to high demand area China Solar: Fast solar farms development Japan Solar: Low operational risk with attractive financial scheme 4

1Q18 Banpu Power overview THAILAND LAOS JAPAN CHINA BLCP Hongsa CHP Solar Solar Strong earnings contribution as normal operation resumed Strong earnings contribution with significant improvement in plant reliability Better sale from high steam demand, but performance impacted by high coal cost Better performance from better weather condition and stable operation Higher capacity factor QoQ from better weather condition EAF* of 100%, up from 66% in 4Q17 EAF* of 92%, up from 83% in 4Q17 EBITDA decreased to RMB 97 M, -23% QoQ due to rising coal cost Power sold increased from additional capacity Capacity factor increased to 13%, +3% QoQ Reported revenue of RMB 33M, +6% QoQ Secured project financing for project Yabuki in March EBITDA of THB 1.9 Bn, +167% QoQ Profit contribution of THB 0.5 Bn, up from THB -0.2 Bn EBITDA of THB 3.7 Bn + 29% QoQ Profit contribution of THB 0.6 Bn, +47% QoQ SLG Construction on going with target COD by end 2019early 2020 Upcoming COD of 44.5 MW within this year Note: * Equivalent Availability Factor (EAF) is a percentage and measures of the potential amount of energy that could be produced by the unit after all planned and unplanned losses are removed 5

Japan Solar project: Mukawa 17 MW MODULE INSTALLATION MODULE INSTALLATION CABLE WORKS TEST FOR RING MAIN UNIT 6

Japan Solar project: Yamagata 20 MW TEST ASSEMBLY FROM PRE-ASSEMBLY PART MATERIAL FOR PRE-ASSEMBLY CABLE WORKS FOUNDATION WORK 7

Japan Solar project: NariAizu 20 MW SITE PREPARATION SITE PREPARATION MODULE INSTALLATION MODULE INSTALLATION 8

1 2 3 4 Review of 1Q18 Operational performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables Financial performance 1.1 BLCP 1.2 Hongsa 1.3 China CHP 1.4 Renewables 1.5 BPP consolidated Looking ahead Appendix 9

BLCP operational performance EQUIVALENT AVAILABILITY FACTOR (EAF) (%) NET GENERATION (GWh) QoQ: +34% YoY: +4% Resumed normal operation after completed major overhaul with stable power generation QoQ: +65% YoY: +2% 96 100 2,795 1,735 2,864 66 CONTRACT AVAILABLE HOUR (hr) COAL CONSUMPTION ( 000 t) QoQ: +72% YoY: +4% QoQ: +64% YoY: +3% 4,150 4,316 2,512 1,009 632 1,035 10

Hongsa operational performance EQUIVALENT AVAILABILITY FACTOR (EAF) (%) NET GENERATION (GWh) QoQ: +9% YoY: +22% Significant improvement in plant efficiency and reliability QoQ: +10% YoY: +35% 70 83 92 2,435 2,992 3,289 CONTRACT AVAILABLE HOUR (hr) COAL CONSUMPTION ( 000 t) QoQ: +7% YoY: +21% QoQ: +8% YoY: +33% 4,944 5,581 5,985 3,022 3,708 4,018 11

China CHP operational performance ELECTRICITY SOLD (GWh) STEAM SOLD ( 000 t) QoQ: +13% YoY: +6% QoQ: +13% YoY: +7% +13% QoQ mainly from residential heating 434 406 458 1,948 522 1,834 435 2,077 599 Luannan 157 155 207 561 544 710 Zhengding 125 108 125 Zouping 152 143 127 865 854 769 12

China Solar: total equity capacity 152.1 MW DC OPERATING CAPACITY BPP s effective ownership is 100% QoQ: +1% Operational solar 152.1 MW YoY: 0% AVERAGE CAPACITY FACTOR (%) Increased both QoQ and YoY from better weather condition and stable operation Shaanxi Shanxi Xingyu Huien 10.30 MW DC 19.70 MW DC Huineng 21.50 MW DC Hubei Henan Hebei Haoyuan 20.00 MW DC Anhui Shandong Jinshan 28.95 MW DC Jiangsu Zhejiang Liaoning Deyuan 51.64 MW DC 13.30% 32 12.70% 13.60% POWER SOLD (GWh) QoQ: +5% YoY: +31% Significant increase YoY driven by additional capacity 40 42 Operating capacity (MW) 140.00 152.09 152.09 13

Japan Solar: total equity capacity of 233.3 MW AC OPERATING CAPACITY Capacity presented on a 100% basis and equity capacity in parentheses Figure not drawn to scale Operational solar Construction Developing solar (As of 31 Mar 2018) 12.6 MW 44.5 MW 176.2 MW 10 MW AC Yamagata 20 MW AC Yamagata iide 200 MW AC (102) Awaji 8 MWAC (6) Hiroshima 8 MWAC Kurokawa 18.9 MW AC Shirakawa Olympia Hino 10 MW AC (4) 3.5 MW AC (2.6) Mukawa 17 MWAC (9.5) Onami 16 MW AC (12) Nari Aizu 20 MW AC (15) Kessenuma 20 MW AC Yabuki 7 MW AC (5.3) AVERAGE CAPACITY FACTOR (%) QoQ: +3% YoY: -2% 12.31% 10.11% POWER SOLD (GWh) QoQ: +30% YoY: +73% Higher capacity factor QoQ due to better weather condition 13.33% 4.5 6.0 7.8 Operating capacity (MW) 6.6 12.6 12.6 14

1Q17 4Q17 1Q18 BLCP financial performance THB million TOTAL REVENUE EBITDA PROFIT CONTRIBUTION TO BPP QoQ: +17% YoY: -3% QoQ: +167% YoY: -6% QoQ: N.A. YoY: -5% Based on Banpu Power s 50% interest FX Gain/loss 553 523 Others 4,955 4,785 4,088 EP* 2,681 2,665 1,996 1,882 752 729 2,766 (190) AP* 2,120 1,952 706 (198) (100) (90) (206) 1,197 Note: 100% basis for availability payment (AP), energy payment (EP) 16

Hongsa financial performance THB million TOTAL REVENUE EBITDA PROFIT CONTRIBUTION TO BPP QoQ: +13% YoY: +28% QoQ: +29% YoY: +32% QoQ: +47% YoY: +281% Based on Banpu Power s 40% interest FX Gain/loss 609 5,697 Others 4,434 5,041 2,097 2,314 3,655 160 414 957 EP* 1,724 2,777 2,829 570 589 AP* 2,694 2,928 3,383 (410) (175) (348) Note: * 100% basis for availability payment (AP), energy payment (EP) 17

China CHP financial performance TARIFF* TOTAL REVENUE PROFIT CONTRIBUTION TO BPP RMB/kWh Luannan 0.39 0.43 0.39 QoQ: +10% YoY: +8% 352 347 RMB million 380 QoQ: -22% YoY: -29% RMB million Based on Banpu Power s 100% interest for Luannan and Zhengding, and 70% for Zouping Zhengding 0.36 0.34 0.34 Luannan Zhengding 100 101 127 112 101 125 86 Zouping 0.38 0.40 0.40 Zouping 140 145 128 78 61 COAL PRICE RMB/t EBITDA QoQ: -23% YoY: -22% RMB million Luannan 606 619 650 125 126 Luannan 35 31 97 Zhengding Zouping 489 767 515 518 746 779 Zhengding Zouping 70 20 58 37 30 47 19 Average 1Q18 coal price of 652.63 RMB/t *LN tariff 4Q17 up from one-time environmental added-up tariff for RMB 6.12M in Dec 2017, ZD tariff 1Q17 up from one-time make-up payment for those due in 2016 Note: 100% basis for availability payment, energy payment, revenue and EBITDA, Profit contribution based on BPP s 100% interest for Luannan & Zhending and 70% for Zouping 18

Solar business financial performance RMB million JPY million CHINA SOLAR JAPAN SOLAR QoQ: +6% YoY: +32% REVENUE +6% QoQ from better weather condition QoQ: N.A. YoY: N.A. CASH DISTRIBUTION (FROM TK INVESTMENT) Based on Banpu Power s 40-75% interest 25 31 33 53 QoQ: +25% YoY: +14% EBITDA 41 22 20 25 QoQ: +200% YoY: +13% NET PROFIT 8 3 9 No schedule for cash dividend in 1Q18 1Q17 4Q17 1Q18 1Q17 4Q17 1Q18 Note: RMB 1.0/kWh of FiT and subsidies for Jinshan, Haoyuan and Huineng phase 1, RMB0.83/kWh for Huineng phase 2, and RMB0.98/kwh for Hui en and Deyuan 19

Banpu Power: consolidated revenue THB million $55 M 1,931 127 182 $57 M 1,883 155 163 $65 M 2,050 163 231 QoQ: +9% YoY: +6% China solar +5% QoQ +28% YoY Others* +42% QoQ +27% YoY 784 765 793 China CHP Steam sales +4% QoQ +1% YoY 838 801 864 China CHP Power sales +8% QoQ +3% YoY Note: * Other i.e., hot water, subsidy for heats 20

Banpu Power: consolidated EBITDA THB million QoQ: +102% YoY: +18% US$30 M 1,384 US$51 M 1,634 119 China solar +21% QoQ +1% YoY 118 US$24 M 807 391 China CHP -20% QoQ -29% YoY 557 98 7 160 488 609 Hongsa equity income +47% QoQ +281% YoY 553 (4) 414 (190) (10) 523 (1) (7) BLCP equity income N.A. QoQ -5% YoY Japan solar N.A. QoQ N.A. YoY SLG 21

Banpu Power: consolidated NPAT 1Q17 NET PROFIT AFTER TAX 1Q18 NET PROFIT AFTER TAX THB million 1,384 China solar 118 China CHP 557 Hongsa 160 (117) Interest - (19) Tax -(152) (18) 1,078 (25) 1,053 (7) US$30M 1,046 THB million 1,634 China solar 120 China CHP 391 (123) Interest - (40) Tax -(114) (15) Non-recurring items: Hongsa court case payment (THB 901 M) Other non-recurring (THB 7.3 M) 1,342 36 1,378 BLCP Japan solar 553 (4) EBITDA AS REPORTED D&A INTEREST MINORITY & TAX NP FROM FX LOSS OPERATION 4Q17 NET PROFIT AFTER TAX NP BEFORE EXTRA NON- RECURRING ITEMS NPAT Hongsa 609 (908) THB million 807 Japan solar China solar China CHP Hongsa 98 7 488 414 (130) Interest - (31) Tax -(147) (33) 466 (20) 445 (12) US$14M 434 BLCP 523 US$15M 470 BLCP SLG (190) (10) Japan solar SLG (1) (7) EBITDA AS REPORTED D&A INTEREST MINORITY & TAX NP FROM FX LOSS OPERATION NP BEFORE EXTRA NON- RECURRING ITEMS NPAT EBITDA AS REPORTED D&A INTEREST MINORITY & TAX NP FROM FX GAIN OPERATION NP NON- BEFORE RECURRING EXTRA ITEMS NPAT 22

Banpu Power: consolidated balance sheet 1Q18 CONSOLIDATED BALANCE SHEET THB million GEARING RATIOS Net debt (Net cash)/ Equity* (x) CASH EQUIVALENT 2,499 TOTAL BORROWINGS 6,720 2,305 OTHER LIABILITIES 0.03 0.10 0.10 ASSETS 46,669 TOTAL SHAREHOLDERS EQUITY 40,143 2016 2017 1Q18 Net debt (Net cash)/ EBITDA(x) TOTAL ASSETS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 0.30 0.23 1Q18 Total assets increase by THB 1,471 M to THB 49,168 M in 1Q18 from THB 47,698 M in 4Q17 2016 2017 Note: * Net debt to book value of shareholders' equity 23

Banpu Power: growth target on track TOTAL EXPECTED OPERATING EQUITY CAPACITY AT YEAR-END Continue evaluating opportunities both conventional and renewables in Asia-Pacific 2.07 GWe* +97 MW + 52 MWe Luannan 2 + 45 MW Japan Solar 2.16 GWe +312 MW + 198 MWe SLG 1 + 52 MWe Luannan 3 + 62 MW Japan Solar 2.48 GWe +312 MW + 198 MWe SLG 2 + 114 MW Japan Solar 2.79 GWe 4.30 GWe CONVENTIONAL POWER 20% RENEWABLES 8% 9% 11% 14% 2018 (as of 31 Mar) 2018 2019 2023 2025 Note: GWe = equity GW equivalent including steam 25

Power projects: 721MWe * pipeline to 2023 TOTAL OPERATING EQUITY CAPACITY AT YEAR-END (GWe) 2018 (as of Mar) 2018 2019 2020 2023 2.07 2.16 2.48 2.69 2.79 GROWTH MILESTONES CONVENTIONAL CHINA Luannan expansion phase 2 (100%) 25 MW and 150 tph (52 MWe*) Luannan expansion phase 3 (100%) 25 MW and 150 tph (52 MWe*) SLG Unit 1&2 (30%) 1,320 MW (396 MW) RENEWABLES 62.2MW AC JAPAN 44.5MW AC Mukawa(56%) 17 MW AC (9.5) Yamagata (100%) 20 MW AC NariAizu (75%) 20.5 MW AC (15) Shirakawa(100%) 10 MW AC Yabuki(75%) 7 MW AC (5.3) Kurokawa(100%) 18.9 MW AC Hiroshima (100%) 8 MW AC Kessenuma(100%) 20 MW AC Onami(75%) 16 MW AC (12) Yamagata Iide(51%) 200 MW AC (102) Note: *Equity basis; MWe = MW equivalent including steam 27

China CHP operational performance The consolidated steam sold increased 7% YoY and 13% QoQ due to longer heating season Luannan Higher steam sold from increased industrial and residential demand Higher utilization/ electricity sold from newly operated Unit #3 (Phase 2) and adopting high-power generation mode based on steam load UTILIZATION COAL CONSUMPTION ELECTRICITY SOLD STEAM SOLD (Hr) ( 000 t) (GWh) ( 000 t) 1,859 1,912 120 207 1,714 599 91 93 157 155 522 435 Zhengding Higher steam sold from increased industrial and residential demand 2,062 1,767 2,074 97 89 108 125 108 125 561 544 710 Zouping Lower steam demand from XiwangGroup which is the main cause of lower steam sold and electricity sold 1,940 1,837 1,306 135 129 117 152 143 127 865 854 769 Additionally, #2 turbine was shut down for 225 hours for maintenance in March, which had impacted on the utilization hour of 1Q18 28

Coal-fired power maintenance schedule 2018 Maintenance 1Q18 2Q18 3Q18 4Q18 BLCP BLCP reached year 10 th of operation, with plan for extended major overhaul (EMJ) of Unit 2 in 4Q18 HONGSA 3 weeks 10 weeks Unit 1 and Unit 3 on inspection for 2 weeks in 3Q18 and 4Q18 Unit 2 on inspection for 6 weeks in 3Q18 6 weeks 2 weeks 2 weeks BIC LUANNAN Unit 1 on minor inspection for 3 weeks in 1Q-2Q18 and 3Q18 Unit 2 on major inspection for 6 weeks in 2Q18, on minor inspection 10 days in 4Q18 Unit 3 on minor inspection for 2 weeks in 2Q18 and 4Q18 BIC ZHENGDING Minor inspection for all units, 1-1.5 week each 3 weeks 3 weeks 6 weeks 10 days 2 weeks 2 weeks 6 6 8 8 days 7 7 10 10 days BIC ZOUPING Unit 3 and Unit 4 on major inspection for 3.5 weeks in 2Q18 Minor inspection for all units, 0.5-1 week each 3.5 weeks 7 7 7 days 3.5 weeks 3 3 3 3 3 days 29

FX impact analysis guidance on P&L CURRENCY EXPOSURE BPP S NPAT IMPACT 1Q18 APPROXIMATE FX EXPOSURE BPP S NPAT 5% SENSITIVITY 2Q18 Based on BPP s interest 40% equity in HPC 50 equity in BLCP THB 32.95/USD$ THB 31.54/USD$ NET ASSET NET LIABILITY Assuming 5% depreciation of USD against THB THB 31.54/USD$ THB 29.96/USD$ 100% basis HPC Functional currency: THB BPP s portion (THB 348M) USD$232M (THB 367M) (THB 870M) USD$581M (THB 918M) 100% basis BLCP Functional currency: USD (THB 206M) (THB 412M) (THB 5,484M) (THB 275M) (THB 10,967M) (THB 550M) 30

Banpu Power : income statement THB million 1Q18 4Q17 1Q17 QoQ% YoY% Sales revenue Sales revenue Cost of sales 2,050.3 (1,517.5) 1,883.4 (1,372.1) 1,930.6 (1,380.7) +3% +6% Gross profit GPM Administrative Expense Equity income Dividend income Other income Amortization on fair value 532.8 26% (243.3) 1,123.8 0 106.8 (8.9) 511.3 27% (300.3) 213.4 6.7 255.0 (9.1) 549.9 28% (230.4) 709.3 0 246.6 (8.2) +4% -19% +427% -58% -2% -3% +6% +59% -57% +9% EBIT 1,511.2 677.0 1,267.2 +123% +19% Interest expenses Financial expenses Income tax Core Business NCI/Minorities Non-recurring items Income tax Non core Business Deferred tax income / expense FX translations (38.5) (1.8) (113.2) (14.5) (908.3) 0 (0.5) 35.5 (28.9) (1.9) (121.7) (32.7) (11.7) (8.6) (17.0) (20.9) (19.2) 0 (116.9) (18) (7.2) 0 (35.3) (24.9) Net profit 469.9 433.7 1,045.7 +8% -55% Note: Non-Recurring include Payment from Hongsa Court case of 901.8 31

1Q18 results. Investor and analyst update. 16 th May 2018