Opportunity Day. FY2017 Financial Results. 28 March 2018

Transcription

1 Opportunity Day FY2017 Financial Results 28 March 2018

2 Disclaimer The information contained in this presentation is provided by BCPG Public Company Limited (the "Company") to you solely for your information. Neither this presentation nor any part hereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company and its respective affiliates. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company and its respective affiliates. Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, no representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. The information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company and its subsidiaries. None of the Company nor any of its respective affiliates nor any of its or their respective members, directors, officers, employees or affiliates assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. Accordingly, none of the above nor any other person accepts any liability (in negligence, or otherwise) for any loss arising from or in connection with any use of this presentation or its contents. This presentation is for information purposes only and does not constitute or form part of any offer or invitation by or on behalf of the Company for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities of the Company, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto ( Securities ) in Thailand, the United States or any other jurisdiction. This presentation should not be construed as legal, tax, investment or other advice. The information contained herein does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. In addition, this presentation contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks which are in many cases beyond the control of the Company, and which may change over time and may cause actual events and the Company's future results to be materially different than expected or indicated by such statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those anticipated by the Company in the forward looking statements. The recipient is cautioned not to place undue reliance on these forward looking statements. In providing this presentation, the Company does not undertake to provide any recipient with access to any additional information or to update the information contained in this presentation or to correct any inaccuracies herein which may become apparent. 2

3 Agenda Key Highlights Financial Highlights Going Forward 3

4 Agenda Key Highlights Financial Highlights Going Forward 4

5 We have delivered our 2017 promises Enhanced value to solar portfolio in Japan New EPC technology, low financing cost, premium negotiation Supported Government s policy and initiatives Solar agricultural cooperatives (War Veterans Organization) Expanded business portfolio in new markets Wind power plant in the Philippines and geothermal power plant in Indonesia Drove innovation into business New energy economy with Blockchain technology 5

6 Material events in 2017 Moving beyond solar operator to green energy leader Existing operations Japan Jan: Disposal of assets in Sumei project Mar: COD of Nagi project (10.5 MW PPA) Dec: Pre-COD of Gotemba project (4 MW PPA) Thailand Jan: COD of Agricultural Cooperatives Solar in Ayutthaya (5 MW PPA) Business Partnership Thailand Sep: Signed JV with Government agencies and War Veteran Organization (8.94 MW PPA) and signed PPA agreement in Feb 2018 Oct: Singed MOU with Siri to develop Smart Green Energy Community Dec: Signed MOU with Power Ledger to bring Blockchain technology to peer-to-peer Energy trading in Thailand Financing Thailand Jul: Signed loan agreement amounted to USD 300 mn to facilitate geothermal investment Acquisitions The Philippines May: Completed an acquisition of wind power plant. Acquisition target: 40% stake in PetroWind Energy Inc. (PWEI) Acquisition size: USD mn Acquired MW: Equity MW of 14 Indonesia Jul: Completed an acquisition of geothermal power plant. Acquisition target: 33.33% stake in Star Energy Group Holdings Pte. Ltd. Acquisition size: USD mn Acquired MW: Equity MW of 158 6

7 Portfolio Summary Operating 394 installed MW and continuously growing Contracted MW Thailand Japan The Philppines Indonesia Japan Operating : 40 MW DC Developing: 152 MW DC Total: 192 MW Solar Wind Thailand Operating : 182 MW DC Developing : 9 MW DC Total: 191 MW Geothermal Indonesia Operating: 158 MW Developing: 24 MW Total: 182 MW Remark: For the Philippines and Indonesia, it is presented only equity MW Philippines Operating: 14 MW Developing: 6 MW Total: 20 MW Operating 394 MW Status Developing 191 MW 20 MW 182 MW Technology 383 MW 7

8 Gotemba project update Started operation since Dec 17 Expect to COD within 1Q18 8

9 Gotemba project update (Cont d) Started operation since Dec 17 9

10 Agenda Key Highlights Financial Highlights Going Forward 10

11 Key business drivers COD in new projects drove electricity generation growth Electricity generation (kwh) +4.3% YoY +4.2% YoY +71.4% YoY % YoY +0.5% QoQ -34.2% QoQ 65,993 68,073 65,384 65, , ,166 6,585 14,409 12,776 8,405 19,504 42,175 1Q17 2Q17 3Q17 4Q Q17 2Q17 3Q17 4Q Irradiation (hours per day) % YoY -9.9% QoQ % YoY % YoY -43.8% QoQ % YoY Q17 2Q17 3Q17 4Q Q17 2Q17 3Q17 4Q

12 Revenue Higher revenue contribution from Japan Unit: THB million % 19.2% 17.6% 10.1% 89.8% 80.8% 82.4% 89.9% 1Q17 2Q17 3Q17 4Q17 Thailand Effective tariff* Unit: THB per kwh +3.2% YoY -8.5% QoQ Japan 3, % YoY 3, % 8.2% 91.8% 85.5% Unit: JPY per kwh Revenue growth drivers: COD projects in Nagi project in Japan and Solar Cooperatives (Ayutthaya) in Thailand Full-year recognitions of Nikaho project in Japan (8.8 MW PPA) and Solar Cooperatives in Thailand (12 MW PPA) +0.6% YoY -2.2% YoY -3.5% YoY -2.6% YoY % QoQ % QoQ Q17 2Q17 3Q17 4Q Q17 2Q17 3Q17 4Q Remark: *Effective tariff excludes FiT to Agricultural Cooperatives Solar of THB

13 Revenue Solar agricultural cooperatives supported growth Unit: THB million 2, % YoY , Irradiation Plant degradation Plant Performance Tariff Solar CO-OP 12 MW

14 Revenue Nikaho and Nagi projects drove revenue growth Unit: THB million % YoY Irradiation Plant degradation Plant Performance Nikaho & Nagi

15 EBITDA 2017 EBITDA growth 5.9% YoY Unit: THB million +38.9% YoY +5.9% YoY % QoQ 529 2,263 2,397 EBITDA growth drivers: COD in new projects 1Q17 2Q17 3Q17 4Q % 71.5% 71.3% 67.8% 73.4% 72.2% EBITDA margin 15

16 Share of profit from associates (adjusted ) Unit: THB million -3.4% QoQ 750 Share of profit from investments: Amortization is a non-cash item Q17 2Q17 3Q17 4Q FY 2017 Wind power plant Geothermal power plant Total Share of profit (Adjusted) 54.2 (1) (2) Total gain on purchase Amortization (3) Total (1) Included profit sharing from Jan 16 to 15 May 16 (THBm 53.1) (2) Included profit sharing from Jan 16 to Jul 16 ( THBm238.2), Salak and Darajat are included since 2Q (3) Amortisation : 7 months for Wind and 5 months for Geothermal 16

17 Share of profit from associates Wind power plant in the Philippines PHILIPPINES Gross Energy Generation (M kwh) Nabas 36 MW + 14 MW Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Capacity Factor (%) Avg = 33% Avg = 31% High season is typically in 1Q and 4Q Due to the lower-than-usual wind in 3Q17, the gross energy output for 2017 was lower by 5.6% 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

18 Share of profit from associates Geothermal power plant in Indonesia Salak 65 MW (377 MW) Wayang Windu 45 MW + 24 MW (227 MW MW) Darajat 47 MW (271 MW) INDONESIA Java 2017 Recognized share of profit from Star Energy Group Holdings Pte.Ltd. for the first time - Wayang Windu since Jan Salak and Darajat since Apr Acquisition cost booked in 3Q17, resulting in drop of share of profit during the period Capacity factor in 2017 was at 90%, in line with

19 Finance cost JPY denominated debt helped lower effective Kd Unit: THB million +43.0% YoY +3.4% QoQ Q17 2Q17 3Q17 4Q17 Interest-bearing debt breakdown by maturity +24.8% YoY Finance cost: A rise in finance cost was mainly due to an investment in geothermal power plant Effective cost of debt for 2017 was 3.21% vs. 3.94% in The lower cost of debt was helped by higher proportion of JPY denominated debt Interest-bearing debt breakdown by currency 52.6% 59.3% 42.0% 3.2% 53.1% 35.6% 32.4% 11.8% 8.3% < 1 year Due in 1-5 years Due > 5 years 58.0% 43.7% THB JPY USD 19

20 Net profit Overseas investments drove bottom line growth % YoY +30.8% YoY % QoQ ,541 2,016 Net profit driver: Strong net profit growth YoY was mainly due to first time recognition investments in associates: wind and geothermal power plants 1Q17 2Q17 3Q17 4Q % 52.0% 60.1% 75.1% 50% 60.7% Net profit margin 20

21 Financial position Fundamentally sound At the end of 2017, total assets increased by THB 6,610 million or 25.9% mainly supported by investments in geothermal in Indonesia and wind power plant in the Philippines Total Liability/Equity and Net IBD/Equity stood at 1.23x and 1.05x as at end of 2017 Unit: THB million 25,489 Financial Position 2,004 32,099 Liability/Equity (x) ,361 13,530 16,940 10,060 1, ,195 13,890 13,517 14,369 3,933 2,675 A L + E A L + E Other Assets PPE Investment in associates Cash and Cash Equivalent Equity Other Liabilities Long-Term Loan Covenant : D/E ratio 3x Additional Debt Capacity : THB 26,079 million Outstanding Debt : 17,028 MTHB 21

22 Dividend payment Robust dividend payout Not less than 40% of the Company s Net Profit (after deduction of all reserves required by law and regulations) Unit: THB per share 0.8 Dividend Yield 2.7% (@ 22.2 THB per share) M16* Q316 Q416 FY16* Q117 Q217 Q317 Q417 FY17 Dividend payout ratio (Consolidated) 62.7% 65.2% 65.2% 57.7% 55.2% 60.4% Remark *The Company paid dividend of THB 0.09 for 2015 performance during 6M16 period. Effectively, 2016 dividend was paid at THB 0.60 per share 22

23 TSR BCPG provided top quartile TSR (c.70%) in SET 100 WORK BCPG MEGA SPRC TISCO AOT IRPC CPN BCP HMPRO TASCO TMB KBANK BH ANAN MINT EGCO CENTEL BCH DELTA KTC TTA AAV SCC PTL BANPU CHG TU CK MALEE TVO BLA #1 in Utility sector #4 in SET 100 Total Shareholder return (%) - SET Remark: TSR is calculated during January to November

24 Agenda Key Highlights Financial Highlights Going Forward 24

25 Current projects on hand in 2018 COD plan of existing projects in 2018 JV with the War Veteran Organization (2Q18) Gotemba project (1Q18) Other solar projects Rooftop Solar Commercial Residential Industrial Floating solar Industrial Implementation of blockchain technology to trade electricity Peer-to-Peer transaction Lower transaction cost 25

26 Our evolution Chapter 1: Generation Focus Chapter 2: Behind the Meter Chapter 3: Energy as a Service Chapter 4: Digital Lifestyle 26

27 BCPG strives to deliver high value while creating wealth for shareholders and sustainable future for all. 27

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29 Appendices Financial Statement Projects detail Awards and recognitions

30 Financial Statement Unit: THB Consolidated Profit and Loss Statement (otherwise stated) 2017 % to sales 2016 % to sales 2017 YoY Revenues from sales and services 3,322,481, % 3,083,912, % 7.7% Cost of sales and services (968,472,025) -29.1% (822,261,990) -26.7% 17.8% Gross Profit 2,354,009, % 2,261,650, % 4.1% Administrative expense (658,882,465) -19.8% (600,170,392) -19.5% 9.8% Operating profit 1,695,126, % 1,661,480, % 2.0% FX gain (loss) (231,747,194) -7.0% (86,340,577) -2.8% 168.4% Other income 244,998, % 296,454, % -17.4% EBIT 1,708,377, % 1,871,594, % -8.7% Financial cost (436,052,229) -13.1% (349,320,373) -11.3% 24.8% Share of profit from associates & subsidiaries 749,434, % - 0.0% NA EBT 2,021,760, % 1,522,274, % 32.8% Corporate Income Tax (5,609,460) -0.2% 19,051, % % Net profit 2,016,150, % 1,541,325, % 30.8% Basic Earnings per Share % Diluted Earnings per Share % 30

31 Financial Statement Unit: THB Consolidated Profit and Loss Statement (otherwise stated) 4Q17 % to sales 4Q16 % to sales 3Q17 % to sales 4Q17 YoY 4Q17 QoQ Revenues from sales and services 780,970, % 756,627, % 853,938, % 3.2% -8.5% Cost of sales and services (254,578,487) -32.6% (226,307,678) -29.9% (245,029,169) -28.7% 12.5% 3.9% Gross Profit 526,392, % 530,319, % 608,909, % -0.7% -13.6% Administrative expense (176,469,707) -22.6% (149,394,203) -19.7% (179,440,664) -21.0% 18.1% -1.7% Operating profit 349,922, % 380,925, % 429,468, % -8.1% -18.5% FX gain (loss) 51,166, % (219,170,634) -29.0% (165,648,423) -19.4% % % Other income (16,245,555) -2.1% 34,839, % 19,534, % % % EBIT 384,843, % 196,594, % 283,354, % 95.8% 35.8% Financial cost (135,202,546) -17.3% (94,563,541) -12.5% (130,766,115) -15.3% 43.0% 3.4% Share of profit from associates & subsidiaries 347,056, % - 0.0% 359,222, % NA -3.4% EBT 596,698, % 102,031, % 511,811, % 484.8% 16.6% Corporate Income Tax (10,576,892) -1.4% 11,612, % 1,759, % % % Net profit 586,121, % 113,644, % 513,571, % 415.8% 14.1% 31

32 Financial Statement Consolidated Statement of Financial Position Unit: THB 2017 % of total assets 2016 % to sales 2017 YoY Cash and cash equivalents 2,003,983, % 7,361,159,641 29% -72.8% Current investments - 0.0% 700,000, % % Trade accounts receivable 507,242, % 486,395, % 4.3% Other current assets 185,691, % 633,990, % -70.7% Total current assets 2,696,917, % 9,181,545, % -70.6% Investments in associate & subsidiaries 13,529,716, % - 0.0% NA Property, plant and equipment 13,890,324, % 14,194,632, % -2.1% Goodwill and Intangible assets 1,892,266, % 2,015,829, % -6.1% Other non-current assets 90,002, % 96,549, % -6.8% Total non-current assets 29,402,310, % 16,307,011, % 80.3% Total Assets 32,099,227, % 25,488,556, % 25.9% Short-term borrowings & current portions 1,415,238, % 1,193,730, % 18.6% Long-term borrowings 15,613,152, % 8,956,491, % 74.3% Other current liabilities 701,903, % 1,821,622, % -61.5% Total liabilities 17,730,294, % 11,971,845, % 48.1% Equity attributable to owners of the Company 14,368,786, % 13,516,564, % 6.3% Non-controlling interests 146, % 146, % 0.0% Total liabilities and Equity 32,099,227, % 25,488,556, % 25.9% 32

33 Financial Statement Consolidated Statement of Cash Flows Unit: THB YoY Net cash from (used in) operating activities 2,351,429,433 1,961,054, ,375,330 Net cash from (used in) investing activities (13,026,381,913) (4,873,871,346) (8,152,510,567) Net cash from (repaid to) financing activities 5,362,244,127 9,364,977,647 (4,002,733,520) Net increase in cash and cash equivalents (5,312,708,353) 6,452,160,404 (11,764,868,757) Cash and cash equivalents at 1 January 7,361,159, ,618,872 6,386,540,769 Effect of exchange rate changes on balances held in foreign currencies (44,467,773) (65,619,635) 21,151,862 Cash and cash equivalents at end period 2,003,983,515 7,361,159,641 (5,357,176,126) 33

34 Appendices Financial Statement Projects detail Awards and recognitions

35 Project pipeline in Thailand 182 Installed MW (130 MW PPA ) of operating assets portfolio in Thailand Location % of Contracted Tariff Power No. Project Operating Entity Off Taker COD District Province Shareholding Capacity (MW) Structure 1 BCPG 1 8 PEA 5/08/11 Bang Pa-in Ayutthaya BCPG N.A. BCPG 2 30 EGAT 16/07/12 2 BSE-BNN Bumnetnarong Chaiyaphum BSE BSE-BPH Bang Pahan Ayutthaya BSE /04/13 4 BSE-BRM Prakonechai Buriram BSE-BRM Adder THB 8/kWh 19/03/14 5 BSE-BRM1 Nongkee Buriram BSE-BRM PEA 11/04/14 6 BSE-CPM1 Bumnetnarong Chaiyaphum BSE-CPM /04/14 7 BSE-NMA Dan Khun Tod NakhonRatchasima BSE-NMA /04/14 8 BSE-PRI Kabinburi Prachinburi BSE-PRI /04/ Wiset Chai Chan Agricultural Cooperative Bang Pa-in Agricultural Cooperative Phra Nakhon Si Ayutthaya Agricultural Cooperative JV: the WVO of Thailand under Royal Patronage of His majesty the King JV: the WVO of Thailand under Royal Patronage of His majesty the King Wiset Chai Chan Angthong BSE-PRI 100% 5.0 Bang Pa-in Ayutthaya BSE-PRI 100% 5.0 Phra Nakhon Si Ayutthaya Ayutthaya Phra Phutthabat Saraburi BCPG NA 5 Tha Muang Kanchanaburi BCPG NA 3.94 FiT: THB 5.66/unit PEA (25 years) 6/03/13 23/12/16 14/03/17 BSE - PRI 100% /12/16 FiT: THB 4.12/unit PEA (25 years) Mid

36 Project pipeline in Japan Operating and future projects portfolio in Japan No. 1 Project S1 (Natkatsugawa) % of Investment Location Irradiation (kwh/m 2 /year) Installed Capacity (MW) Contracted Capacity (MW) Operation Feed-in Tariff (FiT) (JPY/kWh) PPA Period (Year) Kagoshima, Japan 1, S11 (Takamori ) Kumamoto, Japan 1, COD 16/02/15 Kyushu Electric Power Company 3 S19 (Nojiri) Miyazaki, Japan 1, COD 24/02/15 Off Taker 36 Status COD 15/08/14 4 Tarumizu Kagoshima, Japan 1, COD 31/08/15 5 Nikaho Akita, Japan 1, Tohoku Electric Power Company COD 15/07/16 6 Nagi Okayama, Japan 1, Chugoku Electric Power Company COD 02/03/17 Developing 7 Gotemba Shizuoka, Japan 1, Tokyo Electric Power Company 8 Komagane Nagano, Japan 1, Chubu Electric Power Company 9 Yabuki Fukushima, Japan 1, Tohoku Electric Power Company 10 Chiba Chiba, Japan 1, Tokyo Electric Power Company 11 Chiba Chiba, Japan 1, Tokyo Electric Power Company Under development 12 Nagota Kagoshima, Japan 1, Isakida Kagoshima, Japan 1, Shimoyunohira Oita, Japan 1, S Kagoshima, Japan 1, Wait for Grid Expect to COD within 1Q18 Under construction Expect to COD within 4Q18 Expect to COD within 4Q18 Expect to COD within 1Q19

37 Appendices Financial statement Projects detail Awards and recognitions

38 Awards & Recognitions Best IPO Award The Asset Country Awards, Hong Kong Renewable Energy Deal of the Year The Asset Asia Infrastructure Awards, Hong Kong Outstanding Deal of the Year Award SET AWARDS 2017 SET Executives congratulated on being included in SET100 Best Corporate Governance Principles Renewable Energy Company Southeast Asia Best Renewable Energy Company Thailand The European Magazine, UK "Best Acquisition Financing" Award The Asset Triple Country Awards 2017, Hong Kong 38

39 Contact us at: BCPG Public Company Limited Investor Relations team Call: Website:

40 Purchase Price Allocation Purchase Price Goodwill (B/S) Negative Goodwill (P/L) Fair Value Purchase Price Book Value Depreciation and Amortization (P/L)

41 Impact of PPAs on company s earnings and impairment risks Goodwill Intangible Assets Total consideration less revalued Existing net asset value Intangible Assets Goodwill - Higher ordinary amortisations lower earnings - Lower risk of impairments - Lower volatility of earnings - Higher earnings due to lower order amortisations - Higher risk of impairments - Higher volatility of earnings due to possible impairments Back

42 Purchase Price Allocation For each acquisition, BCPG is required to engage third party to perform a Purchase Price Allocation analysis to determine its Fair Market Value. For Geothermal, FMV will be reflected in 1Q2018 FS. Scenario A: Fair Market Value > Purchase Price Scenario B: Fair Market Value < Purchase Price Difference is booked as Gain on Purchase in 2017 Amortization over life Intangible Asset PPE Write-up Fair Market Value (Scenario A) BCPG s Purchase Price Fair Market Value (Scenario B) Goodwill Intangible Asset PPE Write-up Difference is booked as Goodwill and is subject to Impairment Test Amortization over life Target s Net Asset Target s Net Asset Illustrative Only - Not to scale Fair Market Value of Geothermal Asset recorded in FY2017 is preliminary only. Final FMV determined by third party will be reflected in 1Q For 2017, BCPG conservatively estimated the value by using its internal projection, applying industry WACC, which is conservative. It is estimated that FMV will be higher than Purchase Price (as shown in Scenario A). Amortization of Geothermal investment for FY2017 was THB m, resulting from amortizing of intangible asset and PPE write up for 23 years on average. Note that any changes in the FMV determined by third party will impact the amortization amount calculated above.