Opportunity Day Q1/2018 Financial Results 28 May 2018 Ticker: BCPG (SET)

Transcription

1 Opportunity Day Q1/2018 Financial Results 28 May 2018 Ticker: BCPG (SET)

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 Recent Development Financial Highlights Business Outlooks 3

4 Agenda Recent Development Financial Highlights Business Outlooks 4

5 Key Highlights Thailand Full-quarter recognition of Solar cooperatives 5 MW (COD since 14 March 2017) Heavier and longer than usual rainfall lower irradiation hours Signed MOU with IEAT, PEA and BCP Japan Full quarter record of Nagi project 10.5 MW (COD since 2 March 2017) Officially COD of Gotemba project 4.0 MW since 16 April 2018 The Philippines Share of profit (before amortization) was positive of THB 22.2 million, despite lower wind speed and one turbine down for 10 days Indonesia Stable operation. Share of profit (before amortization) was in line with expectation of THB million 5

6 Key Highlights (Cont d) % to sales 100% Sales 82.5% YoY +0.5% Adjusted EBITDA* QoQ +2.6% YoY +6.3% QoQ +29.7% 45.4% Core profit YoY -8.0% QoQ % 43.8% Net profit YoY -22.7% QoQ -40.1% THB 801.5mn THB mn THB mn THB mn Remark: Adjusted EBITDA incorporates share of profit from investment in associates of THB 69.0 mn 6

7 Portfolio Summary Operating installed MW and continued growing Contracted MW Thailand Japan The Philppines Indonesia Japan Operating : 45 MW DC Developing: MW DC Total: 192 MW Q18 Solar Wind Geothermal Thailand Operating : 182 MW DC Developing : 8.9 MW DC Total: MW Indonesia Operating: MW Developing: 24 MW Total: MW Remark: For the Philippines and Indonesia, only equity MW is presented Philippines Operating: 14 MW Developing: 6 MW Total: 20 MW Operating 399 MW Status Developing 186 MW 20 MW 182 MW Technology 383 MW 7

8 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 3.2% (@ 19.7 THB per share) Dividend payout ratio (Consolidated) FY16* Q117 Q217 Q317 Q417 FY17 1Q % 65.2% 65.2% 57.7% 55.2% 60.4% 91.0% 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 8

9 Agenda Key Highlights Financial Highlights Going Forward 9

10 Key business drivers Growing output in Japan helped by full-quarter recognition of Nagi Irradiation (hours per day) % YoY +6.3% QoQ % YoY +29.7% QoQ Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 Sellable Output (kwh) +0.1% YoY +0.5% QoQ +39.0% YoY +8.9% QoQ 65,993 68,073 65,384 65,716 66,035 1Q17 2Q17 3Q17 4Q17 1Q18 6,585 14,409 12,776 8,405 9,155 1Q17 2Q17 3Q17 4Q17 1Q18 10

11 Revenue Stable revenue YoY; growing QoQ Unit: THB million +3.2% YoY +0.5% YoY +2.6% QoQ % 19.2% 17.6% 10.1% 10.9% 89.8% 80.8% 82.4% 89.9% 89.1% Revenue: Revenue was stable YoY at THB 802 million On QoQ basis, revenue grew slightly 2.6% thanks to improving weather condition in Japan despite prolonged snowfall Effective tariff* 1Q17 2Q17 3Q17 4Q17 1Q18 Thailand Japan -0.37% YoY Unit: THB per kwh +1.12% QoQ Unit: JPY per kwh % YoY -0.1% QoQ Q17 2Q17 3Q17 4Q17 1Q18 Remark: *Effective tariff includes FiT to Agricultural Cooperatives Solar (Thailand) of THB 5.66 per unit and Gotemba project (Japan) 1Q17 2Q17 3Q17 4Q17 1Q18 11

12 EBITDA Robust operations in Japan supported EBITDA growth QoQ Unit: THB million -4.8% YoY +11.9% QoQ Q17 2Q17 3Q17 4Q17 1Q % 71.5% 71.3% 67.8% 73.9% EBITDA 1Q18 EBITDA declined by 4.8% YoY mainly due to higher SG&A expenses 1Q18 EBITDA grew by 11.9% QoQ mainly helped by robust operations in Japan and lower SG&A expenses 1Q18 SG&A to sales was at 18.2%, rose from 14.8% in 1Q17, mainly due to personnel expenses to support business expansion Remark: EBITDA from operation, excluding other revenue 12

13 Share of profit from associates Unit: THB million -80.1% QoQ Q17 2Q17* 3Q17** 4Q17*** 1Q18 Share of profit from investments: In 1Q18, total share of profit from investments were at THB 69 million A sharp drop in share of profit was a result of an absence of gain on purchase (booked in 3Q17 and 4Q17 amounted to THB million) Amortization of geothermal power plant should be finalized by third party within July Q18 Wind power plant Geothermal power plant Total Share of profit Amortization Total Remark: *Including wind operation prior to acquisition of THB 53.1 million, **including geothermal operation prior to acquisition of THB million, ***including gain on purchases of wind and geothermal of THB million 13

14 Share of profit from associates Wind power plant in the Philippines PHILIPPINES Nabas 36 MW + 14 MW Wind speed in 1Q18 was lower than 1Q17 One turbine ceased operation for 10 days First quarter of the year is typically the peak season for wind speed Share of profit from operation was at THB 22.2 million. However, net contribution (after amortization) was at THB 14.1 million 14

15 Share of profit from associates Geothermal power plant in Indonesia INDONESIA Salak 65 MW (377 MW) Wayang Windu 45 MW + 24 MW (227 MW MW) Darajat 47 MW (271 MW) Java Robust operation at geothermal power plant Full-quarter recognition of share of profit from investment versus none in 1Q17 Share of profit from operation was at THB million. However, net contribution (after amortization) was at THB 54.5 million Stable capacity factor of approx. 90% during the period 15

16 Finance cost Prudent financial management Unit: THB million +42.3% YoY -9.2% QoQ Q17 2Q17 3Q17 4Q17 1Q18 Interest-bearing debt breakdown by maturity Finance cost: A rise in finance cost YoY was mainly due to debt secured for investments in associates Effective cost of debt for 1Q18 was 2.88% vs. 3.21% in The lower cost of debt was helped by good mix of financing sources and prudent financial management Interest-bearing debt breakdown by currency 3.2% 2% 59.3% 58.8% 53.1% 53% 32.4% 33.0% 8.3% 8.2% Q18 < 1 year Due in 1-5 years Due > 5 years 43.7% 45% Q18 THB JPY USD 16

17 Net profit Attractive margin profile Unit: THB million -22.7% YoY -40.1% QoQ Q17 2Q17 3Q17 4Q17 1Q % 52.0% 60.1% 75.1% 43.8% Net profit margin Net profit: 1Q18 Net profit decreased YoY mainly due to 1) an absence in one-time revenue (booked in 1Q17 from assets disposal) 2) increased financial cost and 3) increased administrative expense 1Q18 Net profit decreased significantly QoQ particularly owing to 1) an absence of gain on purchase from investments in associates (booked in 3Q17 and 4Q17) and 2) an absence of FX gain (4Q17 FX gain was THB 51.2 million) versus FX loss in 1Q18 of THB 12.8 million) 17

18 Core profit Strong QoQ improvement in core profit Unit: THB million -8.0% YoY % QoQ Q17 2Q17 3Q17 4Q17 1Q % 49.1% 79.6% 21.6% 45.4% Recurring profit Margin* Core profit: Stripping out FX gain/loss and one-time items, 1Q18 core profit drop 8% YoY due mainly to rising cost and SG&A in tandem with business expansion period On QoQ basis, core profit rose significantly by 115.8% mainly due to a low base in 4Q17 Remark: *Core profit excludes FX gain/loss and one-time items. One-time items in 1Q17 were FX loss of THB 3.09 million and gain on disposal of THB million, in 2Q17 were FX loss of THB million, loss on assets disposal of THB 0.06 million, loss from forward contract of THB million and reversal of provision from contingent consideration from business acquisition of THB million, in 3Q17 were FX gain of THB million, loss on assets disposal of THB 0.53 million and loss from forward contract THB million, in 4Q17 were FX gain of THB million, assets write off of THB million and gain on purchase of THB million, in 1Q18 were FX loss of THB million 18

19 Financial position Improving gearing ratio As at 1Q18, total assets slightly increased by 1.1% to THB 32,452 million mainly supported by improving liquidity Total Liability/Equity and Net IBD/Equity declined to 1.21x and 1.16x as at 1Q18 Financial Position Unit: THB million 32,099 32,452 2,004 2,376 Liability/Equity (x) ,530 16,940 13,565 17, ,890 14,369 13,823 14,704 2,675 2, Q18 A L + E A L + E Q18 Covenant : D/E ratio 3x : DSCR 1.15x Additional liability Capacity : THB 26,364 million Outstanding Debt : THB 17,032 million Other Assets Investment in associates Equity PPE Cash and Cash Equivalent Other Liabilities 19

20 Agenda Recent Development Financial Highlights Business Outlooks 20

21 What s next in 2018? Growing organically and inorganically Q2: Full-quarter recognition of Gotemba project (4.0 MWppa) Q3: COD of solar power plant project with WVO (8.94 MWppa) August: Peer-to-Peer trading T77 Community implementation M&A: Realising M&A pipelines. Few discussions are in advanced stages

22 T77: Peer-to-Peer Energy Trading Project using Blockchain Technology Habito Mall: 55 kw Bangkok Prep International school: 230 kw Park Court Condominium: 180 kw

23 Infrastructure Fund Entered into assets disposition of solar power plants in Japan e.g. Nikaho and Nagi project into Infrastructure Fund in Japan, totaling capacity of 27.6 MW Target to utilize future cash flow to fund new investments Net transaction value should be JPY 11,000 million or THB 3,185 million

24 BCPG strives to deliver high value while creating wealth for shareholders and sustainable future for all. 24

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26 Appendices Financial Statement Projects detail Awards and recognitions

27 Financial Statement Unit: THB Consolidated Profit and Loss Statement (otherwise stated) 1Q18 % to sales 1Q17 % to sales 4Q17 % to sales 1Q18 YoY 1Q18 QoQ Revenues from sales and services 801,498, % 797,982, % 780,970, % 0.4% 2.6% Cost of sales and services (239,554,614) -29.9% (221,317,168) -27.7% (254,578,487) -32.6% 8.2% -5.9% Gross Profit 561,944, % 576,665, % 526,392, % -2.6% 6.8% Administrative expense (146,064,393) -18.2% (118,398,324) -14.8% (176,469,707) -22.6% 23.4% -17.2% Operating profit 415,879, % 458,266, % 349,922, % -9.2% 18.8% FX gain (loss) (12,833,882) -1.6% (3,094,128) -0.4% 51,166, % 314.8% % Other income 2,243, % 83,707, % (16,245,555) -2.1% -97.3% % EBIT 405,289, % 538,880, % 384,843, % -24.8% 5.3% Financial cost (122,766,352) -15.3% (86,263,402) -10.8% (135,202,546) -17.3% 42.3% -9.2% Share of profit from associates & subsidiaries 68,975, % - 0.0% 347,056, % NA -80.1% EBT 351,499, % 452,616, % 596,698, % -22.3% -41.1% Corporate Income Tax (346,500) 0.0% 1,372, % (10,576,892) -1.4% % -96.7% Net profit 351,152, % 453,989, % 586,121, % -22.7% -40.1% Basic Earnings per Share % -37.9% Diluted Earnings per Share % -37.9% 27

28 Financial Statement Consolidated Statement of Financial Position Unit: THB 1Q18 % of total % of total 2017 assets assets Change Cash and cash equivalents 2,376,165, % 2,003,983,515 6% 18.6% Current investments - 0.0% - 0.0% 0.0% Trade accounts receivable 544,248, % 507,242, % 7.3% Other current assets 148,608, % 185,691, % -20.0% Total current assets 3,069,022, % 2,696,917, % 13.8% Investments in associate & subsidiaries 13,564,920, % 13,529,716, % NA Property, plant and equipment 13,823,460, % 13,890,324, % -0.5% Goodwill and Intangible assets 1,909,456, % 1,892,266, % 0.9% Other non-current assets 85,463, % 90,002, % -5.0% Total non-current assets 29,383,299, % 29,402,310, % -0.1% Total Assets 32,452,322, % 32,099,227, % 1.1% Short-term borrowings & current portions 1,422,061, % 1,415,238, % 0.5% Long-term borrowings 15,609,849, % 15,613,152, % 0.0% Other current liabilities 716,267, % 701,903, % 2.0% Total liabilities 17,748,177, % 17,730,294, % 0.1% Equity attributable to owners of the Company 14,703,997, % 14,368,786, % 2.3% Non-controlling interests 146, % 146, % 0.0% Total liabilities and Equity 32,452,322, % 32,099,227, % 1.1% 28

29 Financial Statement Consolidated Statement of Cash Flows Unit: THB 1Q18 1Q17 1Q18 YoY Net cash from (used in) operating activities 550,923, ,921,748 (7,998,344) Net cash from (used in) investing activities (47,841,383) 168,383,479 (216,224,862) Net cash from (repaid to) financing activities (143,278,568) (401,890,663) 258,612,095 Net increase in cash and cash equivalents 359,803, ,414,564 34,388,889 Cash and cash equivalents at 1 January 2,003,983,515 7,361,159,641 (5,357,176,126) Effect of exchange rate changes on balances held in foreign currencies 12,378,390 (1,713,754) 14,092,144 Cash and cash equivalents at end period 2,376,165,358 7,684,860,451 (5,308,695,093) 29

30 Appendices Financial Statement Projects detail Awards and recognitions

31 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

32 Project pipeline in Japan Operating (33.4 MW PPA ) and future projects portfolio in Japan No. Project % of Investment Location Irradiation (kwh/m 2 /year) Installed Capacity (MW) Contracted Capacity (MW) Operation Feed-in Tariff (FiT) (JPY/kWh) PPA Period (Year) 1 S1 (Natkatsugawa) Kagoshima, Japan 1, COD 15/08/14 2 S11 (Takamori ) Kumamoto, Japan 1, Kyushu Electric Power Company COD 16/02/15 3 S19 (Nojiri) Miyazaki, Japan 1, COD 24/02/15 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 COD 16/04/18 Off Taker 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 32 Status Under construction Expect to COD within 1H19 Expect to COD within 2H19 Expect to COD within 2H19

33 Appendices Financial statement Projects detail Awards and recognitions

34 Awards & Recognitions Jan: "Best Acquisition Financing" Award The Asset Triple Country Awards 2017, Hong Kong Apr: Best Corporate Governance" World Finance Awards 2018, UK Mar: 2018 Thailand Energy Sector Visionary Innovation Leadership Award" Frost & Sullivan Thailand Excellence Awards, Thailand May: Best Clean Energy Community Solutions Southeast Asia 2018" Cfi.co awards, Thailand 34

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