BGRIM: Investor Presentation for Q2’20192019/08/27 · BGRIM INVESTOR PRESENTATION Q2’2019 BGRIM OVERVIEW Q3’2018 UPDATE Q3’2018 OPERATING RESULT 3 Achieved COD 3 projects

BGRIM: Investor Presentation for Q2’2019August 2019

Q2’2019BGRIM INVESTOR PRESENTATION

Q3’2018 OPERATING RESULTBGRIM OVERVIEW Q3’2018 UPDATE 1

Agenda

4

BGRIM UPDATE

Q2’2019 OPERATING RESULTS

HIGHLIGHTS


Q3’2018 OPERATING RESULTBGRIM OVERVIEW Q3’2018 UPDATE

2

BGRIM: Q2’2019 highlights

◼ Revenue Growth

• Synchronized additional 10 MW

from Industrial users (IUs) in

Rayong

• Awarded The Green Financing

of the Year from The Asset

Triple A Asia Infrastructure Awards

2019

◼ Awards◼ Profit Margin Enhancement▪ Completed THB 2.2 billion debt

refinancing of Solar projects to save

interest of 2.0% p.a. or THB 119

million throughout the project life

▪ Significant efficiency improvement at

ABP3, thanks to LTSA with Siemens

◼ MW Growth

• 3 COD projects during June 1-13,

adding installed capacity of 692 MW

and contributing revenue of THB

191 million in Q2’19



3

Achieved COD 3 projects on schedule and within budget

Nam Che 1 DT1&2 Phu Yen TTP

June 1DT1 - June 3

DT2 - June 13

June 10COD

2019

Capacity: Installed - 420 MW dc

Contract - 350 MW ac

Tariff: 9.35 Cent USD per kWh

EVN PPA: 420 MW / 20 Years

BGRIM Holding: 55.0%

Capacity: Installed - 257 MW dc

Contract - 214 MW ac


EVN PPA: 257 MW / 20 Years


Capacity: Installed - 15 MW


EDL PPA: 15 MW / 25 Years


June 10



Updated Vietnam Solar Projects Operation

2019 COD June July

DT1&2 (420 MW)

DT1 (180 MW) -

June 3, 2019

DT2 (240 MW) -

June 13, 2019

114,767,474 153,463,450

Phu Yen TTP

(257 MW)June 10, 2019 68,659,479 87,768,327

Sales to EVN (THB)

DT1&2 (Tay Ninh)

Phu Yen TTP (Phu Yen)

Tuy Hoa Substation Quang Ngai city, Nha Trang city

(The tourist destination of Vietnam)

Tay Ninh Substation Ho Chi Minh city (The biggest demand of electricity in Vietnam)

Binh Long Substation Binh Long Province

Tay Ninh Province

(220 kV EVN transmission line)





5

BGRIM: 2H’2019 outlook

◼ MW Growth ◼ Revenue Growth

▪ Fully recognize revenue from all

new projects with total capacity

of 816 MW added in 1H’19

▪ Synchronize up to 11 MW from

new IU customers in Rayong

• Received the ESG 100

certificate for two consecutive

years for excellent performance

in sustainable development

◼ Awards◼ Profit Margin Enhancement

▪ Apply LTSA with Siemens to

upgrade one gas turbine of

ABP5, to improve heat rate,

shorten maintenance periods

and add more MW

▪ Scheduled COD of Interchem

with 5 MW capacity at the end

of December



Agenda

4

BGRIM UPDATE


HIGHLIGHTS

BGRIM INVESTOR PRESENTATION Q2’2019

7

Well-Diversified Portfolio with Expert in Green-Field Developer

29.9%

28.7%

10.6%

10.1%

8.7%

5.8%6.2%

84.3%

13.6%

0.5% 1.6%

Total 975 MWIn Operation

842 MW*

Solar Group

822 MW

Hydro Group

133 MW

(98 MW Under Development)

Wind Group

16 MW

(Under Development)

Bien Hoa 13 MW

Diesel

Gas Fired

Total 2,257 MWIn Operation 2,022 MW*

Amata City (Chonburi)

675 MW

(Including ABP1&2

Replacement 140 MW each)

Amata City (Rayong)

647 MW

Bangkadi

229 MW

Laem Chabang

196 MW(Including BPLC1

Replacement 140 MW)

WHA Chonburi 1

130 MW

BGPR1&2

240 MW

(Under Development)Type of Energy

Installed MW Equity MW

Total Capacity

% In operation

Total Capacity

% In operation

Gas fired

2,257 MW 69.5% 2,022 MW 1,587 MW 70.2% 1,202 MW

Hydro 133 MW 4.1% 35 MW 95 MW 4.2% 25 MW

Solar 822 MW 25.3% 822 MW 557 MW 24.7% 557 MW

Wind 16 MW 0.5% 15 MW 0.7%

IWTE 5 MW 0.1% 2 MW 0.1%

Diesel 13 MW 0.4% 13 MW 4 MW 0.2% 4 MW

Total 3,245 MW 100% 2,892 MW* 2,260 MW 100% 1,788 MW*

TRANSMISSION & DISTRIBUTION 0.4%

Waste to Energy (IWTE)

5 MW (Under Development)

RENEWABLE GROUP 30.1%

Poi Pet PPSEZ 14 MW**

SOLAR ROOFTOP

WHA (Map Ta Put)

140 MW

(Including SPP1 Replacement)

Solar rooftop for industrial

users and commercial

buildings with up to 100 MW

opportunity**

*Up to 280 MW

*As of July 2019

SPP – INDUSTRIAL ESTATE 69.5%

**Transmission & distribution and solar rooftop are not included in total installed capacity


8

Long-Life PPA and Benefit from Well-Establishment of PPA

2019 SALES AND SERVICE INCOME BY CUSTOMER WEIGHTED AVERAGE REMAINING PPA LIFE

EGAT

66%

IU-TH

24%

IU-VN

3%

Steam-TH

2%

EVN

1% Others

3.4%

THB 21,123 mm6M’2019

Sales and Service Income LONG-TERM PPA STRUCTURE

• EGAT : 21 to 25 years tenor with take-or-pay structure

• PEA : 25 years tenor (VSPP of solar, wind, waste to energy)

• Industrial Users : up to 15-year tenor with track record of extensions

Secured Gas Supply with PTT covering respective PPA tenors

Gas price pass-through at contracted heat rate under EGAT PPA

24.622.4

19.918.6

8.9

EDL PEA / MEA EVN EGAT Industrial users- electricity(Thailand)

Track Record of

Extensions

YearsYears

YearsYears

Years

Note: Weighted Average Remaining PPA life is calculated as the average remaining contractual term remaining from 30 June 2019

to expiry weighted by the aggregate contracted capacity under the relevant agreement

15.0

Years


9

FOOTHOLD IN TOP INDUSTRIAL ESTATES WITH

MULTIPLE OF GENERATING UNITS IN EACH LOCATIONSELECTED TOP IU FOR ELECTRICITY AND STEAM

THAILAND

CAMBODIA

LAOS

VIETNAM

▪ 1 power plant

▪ 130 MW

▪ 3 generating units

▪ 2 power plants

▪ 229 MW


▪ 2 power plants

▪ 240 MW

▪ 6 generating units ▪ 1 power plant

▪ 13 MW

▪ 5 power plants

▪ 647 MW


▪ 5 power plants

▪ 732 MW


▪ 2 power plants

▪ 159 MW


WHA

Chonburi 1

Bangkadi

BGPR1&2

Amata City

Rayong

Amata City Bien Hoa

Gas-fired cogeneration power plants Transmission and Distribution

Delivery of Reliability in Form of Electricity and Steam

▪ 2 power plants

▪ 124 MW


WHA Eastern (Map Ta Phut)

Amata City

Chonburi

Laem

Chabung

Poi Pet

PP SEZ

10

Expanding Renewable Power Rapidly in the Region

THAILAND

CAMBODIA

LAOS

VIETNAM

▪ 8 power plants

▪ 60 MW

▪ 1 power plant

▪ 8 MW

▪ 1 power plant

▪ 8 MW

BGYSP

Solar WVO-Coop

Nam Khao

▪ 5 power plants

▪ 67.5 MW

Hydro power plants

BGPSK

TPS Com.

Solar power plants

DT

▪ 1 power plant

▪ 420 MW

Phu Yen TTP

▪ 1 power plant

▪ 257 MW

Nam Che 1

▪ 1 power plant

▪ 15 MW

▪ 7 power plants

▪ 31 MW

Solarwa

▪ 5 power plants

▪ 39 MW

▪ 1 power plant

▪ 5 MW

Interchem

XXHP

▪ 1 power plant

▪ 20 MW

Tadsakoi

▪ 1 power plant

▪ 30 MW

▪ 2 power plants

▪ 16 MW

Bo Thong


11

Robust Growth Pipeline with Promising on Execution

ACHIEVED COD IN TIME AND WITHIN BUDGET

Gas

Solar

IWTE

Hydro

Wind

2020

Plants

Solar WVO-Coop

(7 plants - 31 MW)

40Plants

2,076 MWInstalled Capacity

1,217 MWEquity Capacity

ABPR3, ABPR4

& ABPR 5 (3 plants - 399 MW)

52


Tadsakoi (30 MW)

2022

Plants

ABP1

Replacement(140 MW)*

BPLC1

Replacement(140 MW)*

ABP2

Replacement (140 MW)*

Nam Khao 3 (15 MW)



Plants

BGPR1, BGPR2 (2 plants -240 MW)

202150Plants

2021

SPP1 Extension(2 plants -124 MW)

46

2019

Plants


DTE

(1 plants - 420 MW)

Interchem(5 MW)

(166 MW)


Phu Yen TTP(1 plants - 257 MW)

ABP1 Extension

Nam Che (15 MW)

SPP1(2 plants - 124 MW)

53


2023

Plants


Nam Khao 5 (8 MW)



Bo Thong 1 & 2 (2 plants - 16 MW)

48Plants



Nam Khao 4 (15 MW)

SPP1 Replacement

(2 plants -140 MW)**


Nam Khao 2 (15 MW)


Nam Khao 1 (15 MW)


2024

54Plants

56

2025

Plants

2018

*Up to 150 MW, **Up to 280 MW

***Based on our projections and may subject to change depending on project suitability


12

Diligently Invest in Suitable Opportunities via Strong Networks

May

Mutual Cooperation Meeting with KEPCO

Strengthening the cooperation and implementation of energy storage system and smart grid technology

100 MW solar rooftop opportunities

1.8 MW COD achievement and 12 MW under

construction which target COD in 2019.

JuneDetermine target KPI

THAILAND

LAOS

MALAYSIA

Gas

Solar

Hybrid

Hydro

Transmission and

Distribution System (T&D)

Wind

VIETNAM

CAMBODIA

KOREA

PHILIPPINES

MOU signing with LG Chem

Cooperation with LG Chem, world leader in fields of energy storage system (ESS), automotive batteries and mobile batteries, for the development in energy storage system.



13

Energy Policy in Disruption Era with 4D 1E

Digitalization Decarbonization

Decentralization De-Regulation

Electrification

MOU with LG Chem

Smart Microgrid

Private PPA with IUs

Wind Projects

Solar Projects

Entering to

develop sandboxIPS


Q3’2018 OPERATING RESULTBGRIM OVERVIEW Q3’2018 UPDATE14

Agenda

4

BGRIM UPDATE


Q2’2019 HIGHLIGHTS


2,369 2,4132,808

4,5875,221

26.9%23.5% 25.8%

27.0%24.7%

23.0%

24.0%

25.0%

26.0%

27.0%

28.0%

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Q2'18 Q1'19 Q2'19 6M'18 6M'19

97% 97% 96%

96%

97%

1%2% 2%

2%

2%

2%1% 2%

2%

1%

8,805 10,257 10,866

16,961

21,123

Q2'18 Q1'19 Q2'19 6M'18 6M'19

15PROJECT UPDATE BGRIM FINANCIAL PERFORMANCE

Top Line and EBITDA Grew Strongly

Revenue grew strongly:

• The y-on-y growths of total revenues were 23.4% for Q2’2019 and 24.5% for 6M’2019 and primarily due to

• The COD of 12 projects with total capacity of 989 MW during Q2’2018-Q2’2019, consisting of ABPR 4-5, 7 solar projects in Thailand, one hydropower plant in Laos and 2 solar projects in Vietnam.

• Two acquisitions: 51% additional holding of BGYSP in July 2018 and SPP1 acquisition with 124 MW in March 2019, and

• rising tariff of electricity and steam.

EBITDA increased continually:

• The y-on-y EBITDA growths were 18.5% for Q2’2019 and 13.8% for6M’2019 mainly from portfolio expansion through COD and acquisitionsas mentioned.

EBITDA margin improved q-on-q in Q2’19:

• EBITDA margin increased q-on-q to 25.8% in Q2’2019 from 1) a 2.4%q-on-q declining gas cost while Ft-charge was stable, 2) no scheduledmaintenance and 3) contributions from Solar projects in Vietnam whichgive relatively higher EBITDA margin.

• .. although it softened y-o-y to 24.7% in 6M’2019 and 25.8% in Q2’2019from an 13.8% increase in gas cost while there was a lag time in Ftcharge adjustment.

Electricity

OthersSteam

(Unit: THB mn)

(Unit: THB mn)

EBITDA Margin

EBITDA AND

EBITDA MARGINTOTAL REVENUES

+2,061 / 23.4% YoY

+609 / 5.9% QoQ

+4,162/ 24.5% YoY

+634 / +13.8% YoY

EBITDA

+395 / 16.4% QoQ

+439 / 18.5% YoY



796 792

175229

349 338

189 199

6M/18 6M/19 6M/18 6M/19 6M/18 6M/19 6M/18 6M/19

2.883.24 3.27 3.30

6M/18 6M/19 6M/18 6M/19

EGAT Industrial Users (TH)

(Unit:THB/KWh)

3,644

1,506

4,326

1,558

6M/18 6M/19 6M/18 6M/19


(Unit: GWh) (Unit: GWh)

KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE 6 MONTHS YoY

ELECTRICITY SALES

VOLUME YoY

ELECTRICITY SELLING

PRICE YoY

SALES VOLUME FOR EACH INDUSTRIAL USER (TH)

FOR 6 MONTHS YoY

(Unit:THB/mmBTU)

Electricity Sales Volume Increased YoY for Both EGAT and IU (6M/2018 vs 6M/2019)

244.28

6M/18 6M/19

EFFECTIVE GAS

COST

277.98

EGAT

• EGAT sales volume increased 18.7% YoY primarily due to the inclusion ofABPR4 and ABPR5 which commenced commercial operation in June and October2018 respectively, and additional contributions from SPP1 acquisition in March2019.

• Electricity price sales to EGAT increased 10.2% YoY because the energypayment is generally adjusted to reflect changes in natural gas price which roseduring these periods.

IU Thailand• IU Thailand sales volume increased 3.5% YoY primarily due to

• The inclusion of new industrial users in Amata City Rayong IndustrialEstate especially from new operation plants in 2018.

• The inclusion of SPP1’s industrial users in WHA Eastern (Map Ta Phut).

• An increase in demand load from existing customers in WHA ChonburiIndustrial Estate and Bangkadi Industrial Park.

• Electricity price sales to industry users in Thailand increased 0.9% YoY

which is in line with the changes in Ft charge announced by the ERC.


Amata City Amata City Laem Chabang Others (Bangkadi,

Chonburi Rayong WHA Chonburi, Map Ta Phut)


EGAT• EGAT sales volume increased 3.6% QoQ primarily due to fully contributions

from SPP1 acquisition in March 2019.

• Electricity price sales to EGAT increased by 0.3% because the energy

payment is generally adjusted to reflect changes in natural gas price which

rose in Q1’2019.

IU Thailand

• IU Thailand sales volume increased 1.0% QoQ primarily due to

• The inclusion of new industrial users in Amata City Rayong IndustrialEstate especially from new operation plants in 2018.

• An increase in demand load from existing customers in BangkadiIndustrial Park.

• Electricity price sales to industry users Thailand remain unchanged which

is in line with the changes in Ft charge announced by the ERC.

2,127

775

2,199

783

Q1/19 Q2/19 Q1/19 Q2/19


(Unit: GWh) (Unit: GWh)



3.25 3.24 3.30 3.30

Q1/19 Q2/19 Q1/19 Q2/19


(Unit:THB/KWh)ELECTRICITY SELLING

PRICE QoQ (Unit:THB/mmBTU)

0.0%

SALES VOLUME FOR EACH INDUSTRIAL USER (TH)

QoQELECTRICITY SALES

VOLUME QoQ

KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE QoQ

Electricity Sales Volume Increased QoQ for Both EGAT and IU (Q1/2019 vs Q2/2019)

Q1/19 Q2/19

EFFECTIVE GAS

COST

281.42 274.66

395 397

106123

172 166101 98

Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 Q2/19 Q1/19 Q2/19Amata City Amata City Laem Chabang Others (Bangkadi,

Chonburi Rayong WHA Chonburi, Map Ta Phut)


Ft (Fuel Adjustment Charge) is a component of electricity tariff announced by Energy Regulatory Commission (ERC) every 4 months to reflect overall

cost of fuel that EGAT uses to generate electricity which includes a portion that EGAT purchases from private sector and import from neighboring countries

➢ In general, natural gas is contributed for 70% of total fuel used to produce electricity in Thailand. Thus, change in gas price has high correlation with

change in Ft over the past 10 years.

➢ In addition, the gap between these two indexes is widen since 2011 – the year that renewable business was start commencement in Thailand

BGRIM’s Electricity price sold to IU is normally benchmark with Ft which would, in the long run, be moved in the same direction with change in gas price


High Correlation between Gas Price and Ft – Benefit to IU Sales

Change in Ft vs Gas Price in 2005-2019

Introduction of

renewable energy

Adjusted FT Index

Gas Price Index

0%

50%

100%

150%

200%

250%

300%

Jan

-05

Jul-

05

Jan

-06

Jul-

06

Jan

-07

Jul-

07

Jan

-08

Jul-

08

Jan

-09

Jul-

09

Jan

-10

Jul-

10

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Adjusted FT Index Gas price Index


8,3

89

7,5

99

7,5

51

8,4

37

7,5

88

7,5

50

1st Round SPP 2nd Round SPP 3rd Round SPP

2018 6M'2019


High Standard Technology Leads to High Efficiency & Availability

95.2 96.498.696.4 95.9

99.6

70

75

80

85

90

95

100

1st Round SPP 2nd Round SPP 3rd Round SPP

2018 6M'2019

Our SPP power plants realized lower heat rates

Most of our gas-fired cogeneration power plants have availability factors of above 90% since COD

HIGH AVAILABILTY (AVAILABILTY FACTOR)

Note: (a) Electricity equivalent generations of steam dispatched are calculated according to efficiency calculation of EGAT PPA (SPP generation 1)

1st Round SPP consist of ABP1, ABP2, BPLC1 BPLC2 and SPP1

2nd Round SPP consist of ABP3, ABP4, ABPR1, ABPR2 BIP1 and BIP2

3rd Round SPP consist of ABP5, ABPR3, ABPR4 ABPR5 and BPWHA

(%)

HIGH EFFICIENCY (HEAT RATE)

Contracted Heat Rate 8,600 BTU/kWh

Contracted Heat Rate 8,000 BTU/kWhContracted Heat Rate 7,950 BTU/kWh

(BTU/kWh)


1,075 1,040

0

700

6M'18 6M'19

563443

557

0

100

200

300

400

500

600

700

Q2'18 Q1'19 Q2'19


NP for Q2’2019 increased 228.8%

9381,158

581

7161,519

1,874

0

500

1000

1500

2000

2500

6M'18 6M'19

9.0% 8.9%

215

532 626101

303412

316

835

1,038

0

200

400

600

800

1000

1200

Q2'18 Q1'19 Q2'19

PROJECT UPDATE

3.6%8.1%

9.6%NP Margin

NP to owner

NP to Non-Controlling Interest (NCI)

NP / NP to owner grew 228.5% y-o-y to Baht 1,038 million in

Q2’2019 / 23.4% to Baht 1,874 million in 6M’2019

• The improvements were from

• new COD of 2 solar projects in Vietnam and Nam Che1,

• new client synchronizing in Rayong,

• full contribution from SPP1,• Improving heat rate at ABP3 (thanks to LTSA with Siemens) and

• 2.4% decline in gas cost while Ft charge was stable.

+722 / 228.5% YoY

NET PROFIT (NP)(Unit: THB mn) (Unit: THB mn)

+203 / 24.3% QoQ

(Unit: THB mn)

1,038 886

557

245 92 329

UnrealizedFx Gain

Non-recurringexpense

NNP NNP to NCI NNP to OwnerQ2’19

Net Profit

RECONCILE NORMALIZED NET PROFIT (NNP) OF Q2’2019

+355 / 23.4% YoY

Portfolio expansion and cost saving could more than offset gas price increasing y-on-y

• If one-time items were excluded (which were 1. THB 125 million

realized FX gain from BIP refinance in Q2’2018 and 2. THB 40 million

temporary impact from EGAT’s transmission line modification which

would be compensated in 2H’2019), NNP could grow 6% y-on-y in

Q2’2019 which was because of portfolio expansion and cost saving.

This was more than offset by the THB 105 million earnings

contribution project COD, MD&A and cost saving.

(1)(2)

668

597

1,200

(1)

(2)1,040

(1) Realized Fx Gain

from BIP refinance

(2) EGAT transmission

line modification

12540

125

40



Strong Financial Position Thanks to the Well-Managed Capital Structure

72%

75%

28%

25%

31 Dec 18 30 Jun 19

15% 14%

9% 8%

76%

78%

31 Dec 18 30 Jun 19

100,636

113,801

Cash, cash Equivalents and ST investments

OtherCurrent Assets

(Unit: THB mn)

Assets

Total

Liabilities

Total

Equity

113,801

100,636

Liabilities and Equity

Non- Current Assets

Financial Position as at 30 Jun 2019

Total assets

• Total assets increased by 13.1%, primarily due to the

continual expansion of project portfolio both local and

overseas.

Total liabilities

• Total liabilities increased by 16.9%, primarily due to an

increase in short-term borrowing for project acquisition,

construction payable for project under construction and

additional loan drawdown for the projects under development

and construction.

Total Equities

• Total equities increased by 3.0%, primarily due to the

increase in retained earnings during the period.

STATEMENT OF FINANCIAL POSITION

AS OF 30 JUN 2019



BGRIM optimizes Capital Structure through Well Managed Debt Profile

THB 60,053 mn(as of 30 June 2019)

Project Level (In Operation)

Loan (THB)

• Only 29% loan represents loan at the corporate level. The remaining 71%contributes to debts at power plant level with limited recourse to sponsor

• Interest obligations of almost all power plant level debts are swapped tofixed rate

• Only 15% of total loan as at 30 June 2019 is denominated in USD which ismatched with a proportion of EGAT tariff indexation to USD at project level,so called “Natural Hedge” strategy

THB 15,507 mn

THB 9,018 mnProject Level

Debenture

THB 3,037 mn

Corporate Level

Loan

THB 14,614 mn

Corporate Level

Debenture

24%

THB 17,877 mn

Project Level

(In Operation)

Loan (USD)

5%

30%

26%

15%

DEBT PROFILE

4.9%

4.7%

4.6%

4.5%

0.04

0.04

0.04

0.05

0.05

0.05

0.05

0.05

0.05

2016 2017 2018 Q2/2019

• Financing costs decreased to 4.5% in Q2/2019 due to:

• Project bond refinance of BIP1 and BIP2 THB 6.7 billion in May 2018

• Corporate bond issuance of THB 9.7 billion in October 2018 andgreen bond of THB 5.0 billion in December 2018

• Solar projects refinance of BGSENA THB 2.2 billion in May 2019with tenors of 14 years and interest saving rate around 2.0% p.a. or THB 119 mn throughout the project life

FINANCING COSTS


Gearing Ratios

• Consolidated net interest-bearing debt to equity ratioincreased to 1.6x, and for the Company only decreased to0.9x as a result of additional investments in new projects tosupport the company’s earnings growths in both short termand long term.


Capital Structure and Dividend Policy

• Manage debt and equity funding to optimize capital structure

• Seek to obtain financing at project level

• Limited-recourse project loan with back-end equity

• Target 3.0x debt to equity project financing at outset,delivering over project life

• Consolidated debt included loans at power plant becauseBGRIM holds majority in most of the projects

Note: Net Interest-bearing debt is Interest-bearing debt less cash, cash equivalents and short-term investments.

60%

40%

NNP to Owner1H'2019

NET INTEREST-BEARING DEBT

TO EQUITY RATIO

• Minimum 40% of normalized net profit of consolidated financial

statements

▪ Interim dividend of 0.15 THB per share

was approved by BOD on 13 August

2019 with the scheduled payment on

10 September 2019

▪ 40% of NNP in 1H’19 will be paid as

dividend with the total amount of

THB 391 mn

1,842

(Unit: THB mm)

DIVIDEND PAYMENT

DIVIDEND POLICYCAPITAL STRUCTURE

0.7x 0.9x1.5x 1.6x

(1.50) (1.40) (1.30) (1.20) (1.10) (1.00) (0.90) (0.80) (0.70) (0.60) (0.50) (0.40) (0.30) (0.20) (0.10)

- 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50

Dec-18 Jun-19

Company only Consolidated

BGRIM INVESTOR PRESENTATION

Q2’2018 OPERATING RESULTQ3’2018 UPDATE BGRIM OVERVIEW

Q1’2019

Q3’2018 UPDATE Q3’2018 OPERATING RESULTS BGRIM OVERVIEW Q3’2018 OPERATING RESULTSBGRIM OVERVIEW

24

Appendix

24


25

140th Year Anniversary of B.Grimm

• Longest established infrastructure, industrial, and healthcare group in Thailand since 1878

• Concessionaire and contractor of the largest infrastructure system in Thailand and South East Asia of the 1890s:

Rangsit irrigation canals

• Introducing leading engineering technologies into Thailand since the 1880s until today with Krupp, Siemens, Carl Zeiss,

Merck, Voith and United Technologies

Values: Positivity, Pioneering Spirit, Professionalism, and Partnership

"Doing Business with Compassion for the Development of Civilization in Harmony with Nature"

Opened Siam

Dispensary

1890 1931 1996 2010

Built Rangsit canal

together with

Snidvongse family

Installed the first

telephone line

between Germany

and Thailand

Supplied turnkey

systems and services

with Siemens for

BTS sky train

Awarded first Small Power Producer (SPP) contract

for Amata B.Grimm Power 1

Consortium

leader for Airport

Rail Link

1878

B.Grimm Power

reached 2,892 MW

installed capacity

1994 June 2019


Q2’2018 OPERATING RESULTQ3’2018 UPDATE BGRIM OVERVIEW

Q1’2019

Q3’2018 UPDATE Q3’2018 OPERATING RESULTS BGRIM OVERVIEW Q3’2018 OPERATING RESULTSBGRIM OVERVIEW

2626

BGRIM Corporate Structure – Long Commitment from Management

B.Grimm Power’s Team

Mr. Harald Link

Chairman

(23 years with B.Grimm Power)

Major Shareholder

Ms. Preeyanart Soontornwata

President


Chairperson of The Association of

Private Power Producers, Thailand

Mr. Surasak Towanich

Senior Executive Vice President

Sales, Marketing and Electricity

Transmission and Distribution


Previously held positions with

EGAT and ABB

Mr. Nopadej Karnasuta


CFO



KBANK and EGCO

Mr. Peradach Patanachan


Legal Counsellor / Business &

Project Development I (Renewable &

Hybrid Projects)



Clifford Chance and KPMG

Mr. Chote Chusuwan


Chief Operation Officer



EGAT and Cogeneration PCL

Mr. Arunphun PootongExecutive Vice President

Business & Project Developments

(Conventional) and Commercial &

Procurement

Previously held positions

with EGAT and JERA Power


27

Awards and Recognition

✓ SET50

✓ SET100

✓ SETCLMV

FTSE SET Mid Cap

EIA Monitoring

Awards 2016

Certificate of the Carbon

Footprint for

Organization (CFO)

Best Energy

Solutions Provider

ASIA Project of

the Year 2015:

Best Distributed

Generation Project

The Most Innovative

Bond Deal

The First Non- financial

Corporate Green Bond

from Thailand

Certificate

of membership

of GEIDCO*

Green Financing

of The Year

*Global Energy Interconnection Development and Cooperation Organization


28

“Excellent”

“ESG 100”(by Thaipat Institute)

“Thai CAC”(by Thai Institute of

Directors Association (IOD))

“Thailand Sustainability Investment (THSI) List”

(by Stock Exchange of Thailand)

“AGM Level”(by Thai Investors Association)

“CGR Score”(by Thai Institute of

Directors Association (IOD))

“Sustainability Report Awards”

(by Stock Exchange of Thailand)

Awards and Recognition


29

Q3’2018 UPDATEQ3’2018 UPDATE

*For PPAs expired in 2019 - 2021

Key consideration

EGAT PPA period (years)

EGAT contract capacity (MW)

EGAT Tariff

IU Tariff

Contracted heat rate

(mmBTU/KWh)

BGRIM’s power plants applied

with this scheme

Replacement

25

Up to 30

Capacity Payment +

Energy Payment

Benchmark with PEA

7,409

ABP1, ABP2, BPLC1,

SPP1 (2 plants)

Extension*

1-3

Up to 60

Energy Payment

Benchmark with PEA

8,282

ABP1, SPP1 (2 plants)

Existing

21-25

Up to 90

Capacity Payment +

Energy Payment

Benchmark with PEA

8,600

ABP1, ABP2, BPLC1,

SPP1 (2 plants)

SPP Extension and Replacement Scheme

ABP1

2019 2020 2021 2022 2023 2024

ABP2

BPLC1

SPP1 #1

SPP1 #2

166 MW, (15.3% holding) 166 MW, (51.2% holding) 140-150 MW, (51.2% holding), 25 years

140-150 MW, (51.2% holding), 25 years

140-150 MW, (100.0% holding), 25 years

171 MW, (15.3% holding)

103 MW, (100.0% holding)

62 MW, (100.0% holding)

62 MW, (100.0% holding)

62 MW, (100.0%)

62 MW, (100.0%)

70-140 MW, (100.0% holding), 25 years

70-140 MW, (100.0% holding), 25 years



30

BGRIM OVERVIEWQ3’2018 UPDATE

MOU signing with LG Chem

(May 14, 2019)

Cooperation with LG Chem, world leader

in fields of energy storage system (ESS),

automotive batteries and mobile batteries,

for the development in energy storage system.

MOU signing with Siemens and TPSC

(Mar 23, 2019)

Service Collaborations to improve 9 power plants

performance for increasing the availability and

efficiency as well as introducing digitalization to

their operation and maintenance.

MOU Signing with Strong Partners


31

Core subsidiaries and associates only

Corporate Structure

60.0%


32

BGRIM’s Shareholders

34.0%

24.4%

9.0%

1.1%

0.4%

31.1%

B.Grimm Power

(Singapore) PTE. LTD.

Mr. Harald Link

B.Grimm Joint

Venture HoldingMs. Caroline Link

Public

Shareholders

Top Public Shareholders (as of 28 Jun 19) %

1. ASIAN DEVELOPMENT BANK 4.7%

2. BBL Long-Term Equity Fund 1.7%

3. Thai Life Insurance Co., Ltd 1.1%

4. Muang Thai Life Assurance Co., Ltd 1.0%

5. SOUTH EAST ASIA UK (Type C) NOMINEES LIMITED

0.8%

6. Others 21.8%

Total 31.1%

PUBLIC SHAREHOLDERS2,606.9 MM SHARES

Directors and

Management


33

Operational Power Plants: Conventional

Note:

(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant

(b) Amata B.Grimm Power owned 30.0% of ABPIF’s units and consequently, our economic ownership of Amata B.Grimm Power 1 Limited and Amata B.Grimm Power 2 Limited was 15.3%

(c) NEPC is currently in the process of establishing policies relating to the extension of SPP PPAs that will expire between 2019 – 2025 (include ABP1, ABP2 and BPLC1) for 10 years with up to the existing contracted capacity.

(d) Acquired from Sime Darby Energy on 30 June 2014

(e) We instead purchase power directly from a subsidiary of EVN which we then on-sell to industrial users in Amata City Bien Hoa Estate

Company Abbreviation Fuel Type COD

Economic

Ownership

%(a)Installed Equity Offtaker /

PPA Expiry

Contracted

Capacity

(MW)

Electricity

Contracted

Capacity (MW)

Steam

Contracted

Capacity

(MW) (MW) Program (t/h)

Amata Nakorn Industrial Estate, Thailand

Amata B.Grimm Power 1 ABP1 Gas-Fired Cogen Sep-98 15.3%(b) 166.4 25.5 EGAT (SPP) Sep-19(c) 90 106.2 6

Amata B.Grimm Power 2 ABP2 Gas-Fired Cogen Sep-01 15.3%(b) 171.2 26.2 EGAT (SPP) Sep-22(c) 90 82.2 16

Amata B.Grimm Power 3 ABP3 Gas-Fired Cogen Oct-12 60.70% 132.5 80.4 EGAT (SPP) Oct-37 90 46.1 13

Amata B.Grimm Power 4 ABP4 Gas-Fired Cogen Nov-15 55.50% 131.1 72.8 EGAT (SPP) Nov-40 90 32.5 –

Amata B.Grimm Power 5 ABP5 Gas-Fired Cogen Jun-16 55.50% 131.1 72.8 EGAT (SPP) Jun-41 90 33.4 13

Subtotal 732.3 277.7 450 300.4 48

Amata City Industrial Estate, Thailand

Amata B.Grimm Power (Rayong) 1 ABPR1 Gas-Fired Cogen Nov-13 61.70% 123.3 76.1 EGAT (SPP) Nov-38 90 17 14

Amata B.Grimm Power (Rayong) 2 ABPR2 Gas-Fired Cogen Jun-13 61.70% 124.4 76.8 EGAT (SPP) Jun-38 90 24 14

Amata B.Grimm Power (Rayong) 3 ABPR3 Gas-Fired Cogen Feb-18 55.50% 133 73.8 EGAT (SPP) Feb-43 90 18 -

Amata B.Grimm Power (Rayong) 4 ABPR4 Gas-Fired Cogen Jun-18 55.50% 133 73.8 EGAT (SPP) Jun-43 90 16 -

Amata B.Grimm Power (Rayong) 5 ABPR5 Gas-Fired Cogen Oct-18 55.50% 133 73.8 EGAT (SPP) Oct-43 90 14 -

Subtotal 646.7 374.3 450 89 28

Laem Chabang Industrial Estate, Thailand

B.Grimm Power (Laem Chabang) 1 BPLC1 Gas-Fired Cogen Jul-01(d) 100.00% 103 103 EGAT (SPP) Jul-22(c) 60 50.1 46.2

B.Grimm Power (Laem Chabang) 2 BPLC2 Gas-Fired Cogen Feb-09(d) 100.00% 56.1 56.1 – – – 60.8 18.5

Subtotal 159.1 159.1 60 110.9 64.7

Bangkadi Industrial Park, Thailand

B.Grimm BIP Power 1 BIP1 Gas-Fired Cogen Apr-15 74.00% 114.6 84.8 EGAT (SPP) Apr-40 90 14 –

B.Grimm BIP Power 2 BIP2 Gas-Fired Cogen Jan-16 74.00% 114.6 84.8 EGAT (SPP) Jan-41 90 18.5 –

Subtotal 229.2 169.6 180 32.5 –

WHA Chonburi1 Industrial Estate, Thailand

B.Grimm Power (WHA) 1 BPWHA1 Gas-Fired Cogen Nov-16 75.00% 130.2 97.5 EGAT (SPP) Nov-41 90 31 –

WHA Eastern (Map Ta Phut) Industrial Estate, Thailand

SPP1 SPP1 Gas-Fired Cogen Feb & Dec-98 100.00% 124.00 124.00 EGAT (SPP) Feb & Dec--21 110 110 48

Gas-Fired Cogen Total 2,021.50 1,202.20 1,250.00 642.80 188.70

Amata City (Bien Hoa) Industrial Estate, Vietnam

Amata Power (Bien Hoa)(e) APB Diesel Generator Apr-99 30.70% 13 4 – – – 310.5 –

Conventional Total 2,034.50 1,206.20 1,250.00 953.30 188.70


34

Operational Power Plants: Solar

Company / Project Abbreviation Location CODEconomic

Ownership %(a)

Capacity Main PPA(s)

Installed

(MW)

Equity

(MW)

Offtaker /

ProgramPPA Expiry

B.Grimm Yanhee Solar Power BGYSP 100.0% 59.7 59.7

Sai Luang 2

Pathumthani province, Thailand Dec-15

8.0 8.0

PEA (FiT) Dec-40

8.0 8.0Sai Luang 3

Sai Luang 9 7.2 7.2

Sai Luang 10 7.5 7.5

Sai Yai Nha 8.0 8.0

Sai Manow 8.0 8.0

Sai Putsa 8.0 8.0

Sai Sena 2 Ayutthaya province, Thailand 5.0 5.0

Solarwa Solarwa 47.5% 38.5 18.3

Sai Lui Rim Num

Nakhon Pathom province,

Thailand

Dec-15

8.0 3.8

PEA (FiT) Dec-40

Sai Chalouw 1 8.0 3.8

Sai Sab 8.0 3.8

BGTTRE2Saraburi province, Thailand

8.0 3.8

BGTTRE3 6.5 3.1

TPS Commercial TPS Saraburi province, Thailand Dec-15 47.5% 8.0 3.8 PEA (FiT) Dec-40

B.Grimm Solar Power (Sakaeo) 1 BGPSK Sakaeo province, Thailand Apr-16 100.0% 8.0 8.0 PEA (FiT) Apr-41

Solar WVO-Cooperatives Solar WVO-Coop Dec-18 100.0% 30.8 30.8

BSPCD Sakaeo province, Thailand 2.3 2.3

PEA (FiT)

Dec-43

BGPCCS Phetchabun province, Thailand 3.6 3.6

BSPCB Surat Thani province, Thailand 5.0 5.0

BGSP1WN Bangkok province, Thailand 5.0 5.0

MEABGPLKB Bangkok province, Thailand 5.0 5.0

BGPBBO Samut Prakan province, Thailand 5.0 5.0

BGPSAI Nonthaburi province, Thailand 5.0 5.0

Dau Tieng (Xuan Cau) DT Tay Ninh province, Vietnam Jun-19 55.0% 420.0 231.0 EVN Jun-39

Phu Yen TTP (Phu Yen) Phu Yen TTP Phu Yen province, Vietnam Jun-19 80.0% 257.0 205.6 EVN Jun-39

Total 822.0 557.2

Note: As of 30 June 2019

(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant.


35

Source: 56-1, EGAT, PEA

(a) Some contract terms are year-on-year basis

(b) According to concession agreements

SPP Gas-fired Cogeneration Solar PV Solar (Vietnam) Wind Hydro

EGATIndustrial Users

PEA (FiT) EVN PEA (Adder) EDLElectricity Steam

Term (years) 21 – 25 years 5 – 15 years(a) 5 – 15 years(a) 25 years 20 years 5 years 25 years

Extension option ✓ ✓ ✓ –– 5 years

auto extensionUp to 10 years

Contracted capacity90 MW

(except for BPLC1

which is 60MW)

Depends on each contract 5 – 8 MW677 MW dc

564 MW ac8 MW 6.7 – 15 MW(b)

Secured fuel supply ✓ ✓ ✓ N/A N/A N/A N/A

Natural gas cost pass-through✓

(at contracted heat

rate)

Partially through

Ft

Depends on

contractN/A N/A N/A N/A

FX pass-through ✓Partially through

Ft– – – – –

Inflation indexation – – ✓ – – – –

Tariff See next page 5.66 THB/kWh 9.35 Cents/kWh

PEA wholesale +

10-year adder at

3.50 THB/kWh

0.065 US$/kWh

Applicable power plantsABP1-5, ABPR1-5, BPLC1, BIP1-2, BPWHA1, BGPR1-2,

SPP1

BGYSP (8

projects), Solarwa

(5 projects), TPS,

BGPSK

DT1&2,

Phu Yen TTP

Bo Thong

(2 projects)

XXHP (2

projects), Nam

Che, Nam Khao

1-5 (5 projects)

Contractual Overview: Commercial Features


36

Electricity Tariff = Capacity Payment + Energy Payment + Fuel Saving

Payment + VAT

Capacity Payment Rate (THB/kW/month) = 𝐶𝑃0 × 𝑥 ×𝐹𝑋𝑡

𝐹𝑋0+(1− 𝑥)

Energy Payment Rate (THB/kWh) = 𝐸𝑃0 +𝑃𝑡−𝑃0

106× contracted Heat rate

Fuel Saving Payment Rate (THB/KWh) = 𝐹𝑆0 ×𝑃𝐸𝑆𝑡

10%

𝐹𝑋𝑡 = THB/ US$ Exchange Rate

𝑃𝑡 = Price for natural gas PTT sells to SPPs in a month (THB/mmBTU)

𝑃𝐸𝑆𝑡 = primary energy saving (“PES”) statistic measuring the efficiency rate of

our gas-fired cogeneration power plant in consuming natural gas in the

generation of electricity and thermal energy

Source: Company filing and data, EGAT

SPP Regulation 1992, 1998

& 20052007 2010

Applicable power plantsABP1-2, SPP1

BPLC1

ABP3,

ABPR1-2,

BIP1

ABP4-5,

ABPR3-5,

BIP2, BOWIN,

BGPR1-2

Base Capacity Payment Rate

(𝐶𝑃0) (THB/kW)302.00 383.66 420.00

Base Exchange Rate (𝐹𝑋0)

(THB/US$)27 37 34

US$THB FX indexation (𝑥) 0.8 0.5 0.5

Base Energy Payment Rate

(𝐸𝑃0) (THB/kWh)0.85 1.70 1.85

Base Price for Natural Gas

PTT sells to SPPs (𝑃0)

(THB/mmBTU)

77.0812 209.4531 232.6116

Contracted Heat Rate

(BTU/kWh)8,600 8,000 7,950

Fuel Saving Payment - ✓ ✓

Base Fuel Saving Payment

(𝐹𝑆0) (THB/kWh)- 0.36 0.36

Contractual Overview: EGAT PPA under SPP Program

TARIFF STRUCTURE


37

Projects

Installed

Capacity

(MW)

Steam

Capacity

(ton/hr)

Type of maintenanceDuration

(days)

2018

Q1 Q2 Q3 Q4


ABP1 166.4 30.0 Major Overhaul 24

ABP2 171.2 30.0Major Overhaul 22

Major Overhaul 12


ABP4 131.1 30.0 Major Inspection 15

Laem Chabang

BPLC1 103.0 50.0Major Overhaul 14

Major Overhaul 15

BPLC2 56.1 20.0 Major Inspection 7

Bangkadi

BIP1 114.6 20.0 Major Inspection 12

BIP2 114.6 20.0 Major Inspection 11

Major Maintenance Schedule in 2018 & 2019

Projects

Installed

Capacity

(MW)

Steam

Capacity

(ton/hr)

Type of maintenanceDuration

(days)2019

Q1 Q2 Q3 Q4







WHA Chonburi 1

BPWHA 130.0 30.0 Major Inspection 12


Abbreviation & Our Projects

ABBREVIATIONADB Asian Development Bank

COD Commercial Operation Date

EBITDA Earnings before Interest, Taxes, Depreciation and Amortization

EDL Electricite Du Laos

EGAT Electricity Generating Authority of Thailand

ERC Energy Regulatory Commission

EPC Engineering, Procurement and Construction

EVN Electricity of Vietnam

FiT Feed-in Tariff

FX Foreign exchange

IPO Initial public offering

IU Industrial user

IWTE Industrial Waste to Energy

JV Joint venture

KWh / GWh Kilo / Gigawatt-hour

MEA Metropolitan Electricity Authority

mmBtu Million Btu (unit of gas consumption)

NNP Normalized net profit

O&M Operations and maintenance

P.A. Per annum

PEA Provincial Electricity Authority (Thailand)

PPA Power purchase agreement

PTT PTT public Company Limited

ROA Return on assets

ROE Return on equity

SG&A Selling, general & administrative expense

YE Year End

YoY Year-on-Year

OUR PROJECTSABPIF Amata B.Grimm Power Plant Infrastructure Fund

ABP1 Amata B.Grimm Power 1





ABPR1 Amata B.Grimm Power (Rayong) 1





BGPSK B.Grimm Solar Power (Sakaeo) 1

BGSENA B.Grimm Sena Solar Power Limited

BGYSP B.Grimm Yanhee Solar Power

BIP1 B.Grimm BIP Power 1

BIP2 B.Grimm BIP Power 2

BPLC1 B.Grimm Power (Laem Chabang) 1

BPLC2 B.Grimm Power (Laem Chabang) 2

BPWHA1 B.Grimm Power (WHA) 1

Nam Che Nam Che 1 Hydro Power Project

XXHP Xenamnoy 2 and Xekatam 1 Hydro Power Project

Interchem Progress Interchem

Solar WVO Solar WVO-Cooperatives Projects

DT Dau Tieng Tay Ninh Energy Solar Plant Project (Xuan Cau)

Phu Yen TTP Phu Yen TTP Solar Plant Project (Phu Yen)

38


Abbreviation & Our Projects

OUR PROJECTS

BSPCD The Chon Daen agricultural cooperatives project

BGPCCS The WVO project, namely the Veteran Support Office of Chonburi

BSPCB The Ban Na Doem agricultural cooperatives project

BGSP1WN The WVO project, namely Office of Agriculture, Industry and Services Affairs

BGPLKB The WVO project, namely the Veterans General Hospital

BGPBBO The WVO project, namely the WVO Office of Terminal Production Workshop

BGPSAI The WVO project, namely the WVO Office of Security Services

39


INVESTOR RELATIONS

IR Contact

Disclaimer

None of the Company makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document or otherwisemade available nor as to the reasonableness of any assumption contained herein or therein, and any liability therein (including in respect of any direct, indirect or consequentialloss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise or representation, whether as to the past or the future and noreliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Further, nothing in this document shouldbe construed as constituting legal, business, tax or financial advice.

This document is a summary only and does not purport to contain all of the information that may be required to evaluate any potential transaction and any recipient hereof shouldconduct its own independent analysis of the Company, including the consulting of independent legal, business, tax and financial advisers. The information in these materials isprovided as at the date of this document and is subject to change without notice.

.

Email: [email protected]

Tel: +66 (0) 2710 3528

Solaya Na Songkhla


Gunnlapat Wichutarat


Thunruethai Makaraphan


Contact Us:

Dr. Gerhard Link Building,

5 Krungthepkreetha Road, Huamark,

Bangkapi, Bangkok 10240, Thailand

Tel: +66 (0) 2710 3400

Fax: +66 (0) 2379 4245

40

Documents

BGRIM: Investor Presentation for Q2’20192019/08/27 · BGRIM INVESTOR PRESENTATION Q2’2019 BGRIM OVERVIEW Q3’2018 UPDATE Q3’2018 OPERATING RESULT 3 Achieved COD 3 projects