ANALYST MEETING 1Q11. May 12, 2011

Transcription

1 ANALYST MEETING 1Q11 May 12, 2011

2 Agenda Highlights Operation Performance Project Highlights Financial Performance Acquisition Of TSI 2

3 Highlights 3

4 Highlights 1Q11 Power Consumption Peak generation was 23,156 MW in March, decreased 3.56% yoy y Total energy generation has decreased 1.55% yoy Event RATCHGEN s Debentures : Issued debentures and bills of exchange to refinance the whole amount of its loan in March 2011 (Interest Savings = 276 Million Baht) Additional Shares Purchase of EDL Gen : Purchased additional shares of EDL Gen during March to May in total of 5.75 million shares, making the Company s stake in EDL Gen to 10%. Shares Purchase of TSI in Australia : Entered into a Scheme Implementation Agreement with TSE to acquire the 56.2% of TSI Fund that TSE does not own for a price of $ 0.85 per security under Schemes of Arrangement. Credit Rating : S&P s maintained the Company s rating at BBB+ which was unaffected by TSI Acquisition. Financial Highlights 1Q11 Net Profit - Equity holders of the Company = 1, Million Baht 4

5 Operation Performance 5

6 Total Installed Capacity Total Installed Capacity: 31,699 MW. Other 8 IPPs 7,971 MW SPPs 2,182 MW Foreign Purchase 2,049 MW TECO 350 MW EGAT 14,998 MW RATCH 4,499 MW RG 3,645 MW RPCL 350 MW NN2 154 MW Source: EGAT, March 2011 Other 8 IPPs consisted of 1. Electricity Generating PCL. 2. Independent Power (Thailand) Co., Ltd 3. Tri Energy Co., Ltd 4. Glow IPP Co., Ltd 5. Eastern Power and Electric Co., Ltd 6. BLCP Power Limited 7. Gulf Power Generation Co., Ltd. 8. Ratchaburi Power Co., Ltd 6

7 RATCHGEN Operation Performance: Dispatch Factor 1Q11 1Q10 Dispatch Factor (%) Equivalent Availability Factor (%) Dispatch factor (%) Equivalent Availability Factor (%) TP# TP# CCGT # CCGT # CCGT #

8 RATCHGEN Operation Performance: By Type of Power Plant 1Q11 1Q10 Total Net Generation GWh 2, , Net Generation (TP#1-2) GWh By Gas GWh By Oil GWh Net Generation (CCGT#1-3) GWh 2, , By Gas GWh 2, , By Oil GWh

9 RATCHGEN Operation Performance: Fuel 1Q11 1Q10 Fuel Consumption (TH#1-2) - Gas Million MMBTU 4, , Heavy Oil Million Liters Fuel Consumption (CCGT#1-3) - Gas Million MMBTU Diesel Million Liters Gas Price (Average) Baht/MMBTU Heavy Oil Price (Average) Baht/Liters

10 Actual Outage Planned Outage Planned Outage at Ratchaburi Power Plant in 2011 Plant Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec RG CCST-10 1 MI 26 CCGT CI 26 CCGT-12 CI MI RG CCST CCGT CI 3 CCGT CI 3 RG CCST MI 8 CCGT-31 9 MI 8 CCGT-32 9 MI 8 Thermal Jan, 15 Jan -11 Mar, MI Mar (Reserve Shutdown) 7 15 Thermal-2 1 Jan -9 Feb, Mar (Reserve Shutdown) 6 MI 15 TECO RPCL RPCL CCST-10 CCGT-11 CCGT-12 CCST-10 CCGT-11 CCGT-12 CCST-20 CCGT-21 CCGT-22 CI CI CI 23 1 Thermal Plant Minor Inspection (MI) 40 Days Major Overhaul (MO) 57 Days MI 3 7 MI 8 31 MI 8 31 MI 8 31 Warranty Inspection (WI) Combustion Inspection Minor Inspection Major Overhaul Gas Turbine Normal (WI) Gen.Rotor Removed (WI*) (CI) (MI) (MO) 26 Days 32 Days 15 Days 30 Days 52 Days Warranty Inspection (WI) Minor Inspection Major Overhaul Steam Turbine Normal (WI**) Gen.Rotor Removed (WI*) (MI) (MO) 26 Days 30 Days 26 Days 49 Days 10

11 Actual Outage Planned Outage at Ratchaburi Power Plant in 2010 Plant Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec RG CCST-10 CCGT-11 CCGT CI 3 11 CI 2 RG CCST-20 CCGT-21 CCGT-22 MI 25 1 MI 15 1 RG CCST-30 CCGT-31 CCGT CI CI 4 4 Thermal-1 Thermal Mar(Reserve Shutdown) 1 Jan 17 Mar, Mar (Reserve Shutdown) TECO CCST-10 CCGT-11 CCGT CI 5 21 CI 29 RPCL CCST-10 CCGT-11 Start 8 CI 18 RPCL CCGT-12 CCST-20 CCGT-21 CCGT-22 MI 2 28 MI 2 28 MI 2 28 Thermal Plant Minor Inspection (MI) 40 Days Major Overhaul (MO) 57 Days Warranty Inspection (WI) Combustion Inspection Minor Inspection Major Overhaul Gas Turbine Normal (WI) Gen.Rotor Removed (WI*) (CI) (MI) (MO) 26 Days 32 Days 15 Days 30 Days 52 Days Warranty Inspection (WI) Minor Inspection Major Overhaul Steam Turbine Normal (WI**) Gen.Rotor Removed (WI*) (MI) (MO) 26 Days 30 Days 26 Days 49 Days 11

12 Project Highlights ht 12

13 Group Projects 2011 Projects in Operation 1,170 MW In Thailand 171 MW In Laos 999 MW Company Effective Shareholding RATCH s Capacity Stake RATCHGEN % 00% 3,645 MW TECO 50.00% 350 MW 8,000 Nam Bak 40 MW Pratu Tao-A % 00% 175MW , MW 110 MW Xe Pian 97.5 MW RPCL 25.00% 350 MW 6,000 4 Projects in Laos = 999 MW Pratu Tao-A (Expansion) % 0.90 MW 5,000 NN % MW 4,000 3, MW SPP 2P Projects 140 MW Solarta 49.00% MW Total 4,518 MW 2,000 3 Projects in Thailand = 171 MW 1,

14 Financial Performance 14

15 Statements of comprehensive income: 1Q11 & 1Q10 Unit : in Million Baht 1Q11 1Q10 Diff % Revenues 8, , (1,863.34) (17.98) Cost & Expenses 6, , (1,884.72) (22.06) EBIT 1, , Finance costs Income tax expense Profit for the period 1, , (265.50) (18.18) EPS (Baht) (0.19) (18.81) Profit (loss) attributable to : Equity holders of the Company 1, , (264.21) (18.09) Non-controlling interests (1.29) - (1.29) n.a. Profit for the period 1, , (265.50) 50) (18.18) 18) 15

16 Revenues: 1Q11 & 1Q10 Unit : in Million Baht Unit : in Million Baht 1Q11 1Q10 Diff % Net Sales 8, , (1,780.61) (18.02) AP 3, , EP Fuel 4, , (2,242.67) (31.48) -VOM Share of profit from jointly-controlled entities (154.52) (45.43) TECO (61.29) (39.26) RPCL (89.49) (42.29) SEAN (0.45) (4.65) CRESCO HPC (47.22) (36.08) (11.14) (30.88) SEC - (0.74) 0.74 n.a. PFMC (0.01) - (0.01) n.a. SOLARTA (0.16) - (0.16) n.a. RW COGEN (0.13) - (0.13) n.a. NN3 (0.02) - (0.02) n.a. Revenue from Rendering of services Interest Income Management service income (0.11) (0.31) Other Incomes Total Revenues 8, , (1,863.34) (17.98) 16

17 Cost and Expenses: 1Q11 & 1Q10 Unit : in Million Baht 1Q11 1Q10 Diff % Cost of Sale and rendering of services 6, , (2,151.68) (25.76) - Fuel 4, , (2,177.85) (30.95) - VOM Rendering of services - RL n.a. -Other 1, , (6.04) (0.47) Selling and Admin- Expenses Refinance Expenses n.a. Total Cost and Expenses 6, , (1,884.72) (22.06)

18 Statements of financial position Unit : in Million Baht 69,342 69,446 68,656 Cash & S/T Investment Other Asset Interest Bearing Debt Other Liabilities PP & E Equity Q11 18

19 Financial Ratio 1Q11 1Q10 Current Ratio (times) ROE (%) ROA (%) EBITDA (Million Baht) 2,580 2,521 EBITDA/Avg. Assets (%) Debt/Equity (times) Net Debt/Equity (times) DSCR (times) Book Value (Baht per share) EPS (Baht per share)

20 Foreign Exchange Rate Unit : in Million Baht 1Q11 1Q10 Net Profit before Foreign Exchange Rate 1, , Gain (Loss) from Foreign Exchange Rate - RH RG TECO (RH holds 50%) (4.13) RPCL (RH holds 25%) (10.38) Profit attributable to : Equity holders of the Company 1, , Foreign Exchange Rate as at March 31, 2011 = Baht/USD, as at December 31, 2010 = Baht/USD Foreign Exchange Rate as at March 31, 2010 = Baht/USD, as at December 31, 2009 = Baht/USD 20

21 Outstanding Loan As at March 2011 Unit : in Million Baht Q1/2011 RATCH Portion Million Baht Million USD RATCHGEN 100% 16,110 - TECO 50% RPCL 25% 1, SEAN 25% 3, Maturity Year RATCHGEN 2015 TECO 2013 RPCL 2020 SEAN

22 Acquisition iti of TSI 22

23 Solid growth opportunities across the Asian region Access to strong electricity demand growth in regulatory environment of Australia. To expand a strategic t business in Australia as an operator. To strengthen the company's core business and related business in energy with TSE, a world class partner, with regard to O&M and further cooperation for future opportunities. To serve the company's investment plan by reaching the target of 7,800 MW by

24 Australian Market Overview 24

25 Demand for Clean Energy to Grow 25

26 TSI Investment Rational Large Scale entry into Australian Market Give RATCH access to a portfolio of over 1,125.6 MW of generation assets Positive Australian energy industry outlook Well regulated market with revenue from secured contracts Immediate stable cash flows Provide RATCH immediate cash inflows during the construction stage of other projects in pipeline Diversified portfolio Increase diversification of Ratch s portfolio in terms of fuel type, operational type and counterparties Already diversified asset by itself in terms of locations with a wide coverage in Australia, and PPA expiration (contract maturity) Substantial return Expected EIRR of no less than 12% Organic growth opportunities Significant brown field development with potential opportunities in terms of first right of refusal Ability to capitalize on demand for clean energy TSI as the second largest provider of Australia wind energy Benefit from increased demand for wind generation given Australia s 2020 renewable energy target Internal investment t process has taken all potential ti risks into consideration 26

27 Transaction Overview On 2 May 11, RATCH has entered into a Scheme Implementation Agreement ("SIA") with Transfield Services Limited ("TSE") to acquire the 56.2% of Transfield Infrastructure Fund (" TSI Fund") that TSE does not own for a price of $ 0.85 per security under Schemes of Arrangement. RATCH would acquire a further 23.8% interest in TSI Fund from TSE at $0.85 per security, so that RATCH s security holding would increase to 80%. TSE would retain its remaining 20% interest in TSI Fund in accordance with its long held strategic objective. The proposal includes the acquisition of TSE s development business including its portfolio of wind farm development opportunities. Under these arrangements, as the owners of the TSI Fund, RATCH and TSE would work together to jointly develop these opportunities 27

28 TSI Asset Portfolio Portfolio of generation, water and wind assets: Location of Assets TSI GAS Coal Water Wind Townsville Kemerton BP Kwinana Loy Yang A Collinsville Macarthur Yan Yean Starfish Hill Windy Hill Toora Asset Ownership Capacity Equity MW Type Fuel PPA Expiry Townsville 100% 234MW 234MW Base Gas 2025 Kemerton 100% 300MW 300MW Peak Gas 2030 BP Kwinana 30% 118MW 35.4MW Base Gas 2021 Collinsville 100% 180MW 180MW Intermediate Black Coal 2016 Loy Yang A 14% 2,200MW 309MW Base Brown Coal 2036 Starfish Hill 100% 34.5MW 34.5MW Intermittent Wind n/a Toora 100% 21.0MW 21.0MW Intermittent Wind 2012 Windy Hill 100% 12.0MW 12.0MW Intermittent Wind 2015 Generation Capacity 3,100MW 1,126MW Macarthur Water Filtration 50% 265,000 m3 per day 132,500 m3 per day Base Yan Yean Water Filtration 50% 155,000 m3 per day 77,500 m3 per day Base

29 Diversified Asset Portfolio TSI Fund has a portfolio of high quality power and water assets, diversified by fuel type, operations and geography Source : 29

30 Asset Contracting Position Contracting Position 2012 Contracted vs. Uncontracted Cash Flow Starfish Hill Windy Hill Toora Townsville Kemerton Collinsville BP Kwinana 2012 Breakdown by Asset Macarthur Yan Yean Loy Yang A Contracted Partially Contracted Uncontracted 30

31 Thank you Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. p j g p j subject to various risks. No assurance is given that future events will occur,, that projections will be These views are based on assumptions achieved, or that the Company s assumptions are correct. Actual results may differ materially from those projected. Investors are, however, required to use their own discretion regarding, the use of information contained in this presentation for any purpose. 31

32 Appendix 32

33 Projects in Operation Ratchaburi Power Plant (RG) Project Summary Shareholders Structure Location : Technology : Total Capacity : Contributed capacity to RATCH: PPA : Ratchaburi Province Thermal & Combined Cycle 3,645 MW. 3,645 MW. (100%) 25 Years (Remaining:14 Years) RATCH 100% COD : TH#1-2 - Oct 2000, CCGT #1-2 Apr 2002 and CCGT#3 Nov 2002 Outstanding Loan: THB 16,110 Million (as at March 2011) Debt to Equity : Lender : 1.04 times KTB, KBANK, BAY, GSB, BT & TMB Investment Amount (for RATCH) : THB 18,275 Million 33

34 Projects in Operation Tri Energy Power Plant (TECO) Project Summary Shareholders Structure Location : Ratchaburi Province Technology : Combined Cycle Total Capacity : 700 MW. RATCH Contributed capacity 350 MW. (50%) to RATCH: 100% PPA : 20 Years (Remaining:9 Years) COD : July 2000 RGAS 50% 50% Chevron Thailand Energy Company I Outstanding Loan: USD Million (as at March 2011) Debt to Equity : Lender : Investment Amount (for RATCH) : 0.22 times BTMU, Mizuho & SMBC THB 1,809 Million 34

35 Projects in Operation Ratchaburi Power Plant (RPCL) Project Summary Shareholders Structure Location : Ratchaburi Province Technology : Combined Cycle RATCH Total Capacity : Contributed capacity to RATCH: PPA : 1,400 MW. 350 MW. (25%) 100% 25 Years (Remaining: 22 Year) COD : CCGT #1 March 2008 CCGT #2 June 2008 Outstanding Loan: (as at March 2011) THB 5, Million USD Million Debt to Equity : 1.60 times 25% Ratch Udom Power 100% Ratch Alliances 25% 15% 15% HK Electric Chubu Electric PTT Lender : USD: JBIC, Calyon, HSBC & SMBC THB: BBL & KTB 10% Union Energy Investment Amount USD Million 10% (for RATCH) : THB 1,831 Million Toyota Tsusho 35

36 Projects in Operation Pratu Tao-A Ptatut Tao-A Shareholders Structure Location : Technology : Total Capacity : Sukhothai Province Gas Engine 1.75 MW. RATCH Contributed capacity to RATCH: 1.75 MW. (100%) PPA : 5 Years (Automatic Renewal) COD : June 2007 Investment Amount (for RATCH) : THB 62 Million 100% Ratchaburi Energy 100% Ptatu Tao-A (Expansion) Total Capacity : 0.90 MW. Contributed capacity to RATCH: 0.90 MW. (100%) Pratu Tao-A Pratu Tao-A (Expansion) PPA : 5 Years (Automatic Renewal) COD : Dec 2010 Investment Amount (for RATCH) : THB 32 Million 36

37 Projects in Operation Num Ngum 2 Project Projects Summary Shareholders Structure Location : Technology : Lao PDR Hydro Power Plant 33.3% RATCH Total Capacity : 615 MW. (3x205 MW.) Contributed capacity to RATCH: MW. (25%) PPA : 27 Years IOD : January 2011 COD : January % SouthEast Asia Energy 38% 16.7% 5.3% C.H Karnchang Bangkok k Expressway Shalapak Project Cost : Outstanding Loan: (as at March 2011) THB 30,832 Million THB 15,253 Million USD 180 Million 25% Lao PDR 5.3% 1.4% P.T Construction Irrigation Team Consulting Debt to Equity : Lender : Investment Amount (for RATCH) : 2.55 times KTB, TMB & SCIB THB 2, Million 37

38 Projects in Operation Solarta Power Project Projects Summary Location : Technology : Total Capacity : Ayutthaya Province Suphan Buri Province Nakon Pathom Province Solar Power Generation MW. Project Progress Signed Share Purchase Agreement and Shareholders Agreement with Yanhee Power Holding on January 13, 2011 Shareholders Structure Contributed capacity to RATCH: MW. (49%) PPA : 5 Years (Automatic Renewal) COD : In Project Cost : THB 4,000 Million RATCH 49% 51% Yanhee Power Holding Total Debt : THB 2,800 Million Debt to Equity : Lender : Investment Amount (for RATCH) : 70 : 30 times KBANK THB 595 Million Solarta Co.,Ltd 38

39 Project under Construction Hongsa Thermal Project Projects Summary Location : Lao PDR Technology : Lignite-Fired Power Plant Total installed Capacity : 1,878 MW. Contributed capacity to RATCH: MW. (40%) Fuel: Lignite PPA : 25 Years IOD : n.a. COD : In 2015 Project Progress Signed the Shareholder Agreement on February 5, 2009 for the establishment of Hongsa Power Co., Ltd. and Phu Fai Mining to operate Hongsa Power Plant Project Signed Tariff MOU with EGAT on May 13,2009 Signed Concession Agreement with the Government of Lao PDR on November 30, 2009 Signed EPC on December 24, 2009 Signed PPA with EGAT on April 2, 2010 Signed EPC (Transmission Line Contractor) on June 2, 2010 Finance Documents have been singed on August 5, 2010 Financial Closed on October 29, 2010 O&M Agreement signed on February 23, 2011 Shareholders Structure Project Cost : USD 3,710 Million 40% Hongsa 40% Banpu Power Debt to Equity : 3:1 times Power 20% Lender : n.a. RATCH Lao PDR Investment Amount (for RATCH) : USD 371 Million 37.5% Phu Fai Mining 37.5% 25% Banpu Power Lao PDR 39

40 Projects under Development Khao Kor Wind Farm Project Project Summary Location : Phetchabun Province Technology : Wind Turbine Generator Total Capacity : 60 MW. Contributed capacity to RATCH: MW. (51%) PPA : n.a. Project Progress MOU signed on December 3, 2008 Share Purchase Agreement & Shareholder Agreement signed on February 18, 2009 Preparing RFP for lenders Turbine Supply and Balance of Plant Agreement signed on March 18, 2010 RATCH has purchased another 21% stake in the Project on Aug 10, 2010 IOD : n.a. Shareholders Structure COD : In 2012 Project Cost : USD 120 Million RATCH Debt to Equity : 70:30 times 100% Lender : n.a. Investment Amount (for RATCH) : USD Million Ratchaburi Energy 51% 39% 10% Wind Energy Holding Other 40

41 Projects under Development SPP Cogeneration Project Summary Project Summary Nava Nakhon Electricity Generating Ratchaburi World Cogeneration Location : Nava Nakorn Industrial Promotion Zone, Pathumthani Province Location : Ratchaburi Industrial Estate, Ratchaburi Province. Technology : Cogeneration Technology : Cogeneration Total Capacity : 130 MW Total Capacity : 110 MW (2x110 MW) Contributed capacity to RATCH: 52 MW (40%) COD : In Contributed capacity to RATCH: 88 MW (40%) COD : In Project Progress Share Purchase Agreement and the Shareholders Agreement signed on March 15,

42 Projects under Development Num Ngum 3 Project Projects Summary Location : Lao PDR Technology : Hydro Power Plant Total Capacity : 440 MW. (2x220 MW.) Contributed capacity to RATCH: 110 MW. (25%) PPA : 27 Years Project Progress Shareholder Agreement signed with GMS Lao Co.,Ltd., Marubeni Corporation and Lao Holding State Enterprise on May 13, 2008 Signed Tariff MOU with EGAT on March 11, 2010 Negotiating PPA with EGAT & CA with GOL Shareholders Structure IOD : n.a. COD : In % GMS Lao Project Cost : Debt to Equity : USD 905 Million 70:30 times RATCH 25% NN3 25% Marubeni Corporation Potential Lender : - USD Loan :ADB, JBIC & PROPARCO - THB Loan: n.a. 23% Lao PDR Investment t Amount (for RATCH) : USD Million 42

43 Projects under Development Xe Pian - Xe Namnoy Project Projects Summary Project Progress Location : Lao PDR Joint Development Agreement signed with SK Engineering & Construction and Korean Western Power on August 6, 2007 Technology : Hydro Power Plant Project Development Agreement signed with the government of Total Capacity : 390 MW. Lao PDR on November 14, 2008 Signed Tariff MOU with EGAT on August 16, 2010 Contributed capacity to RATCH: 97.5 MW. (25%) PPA : n.a. Negotiating PPA with EGAT & CA with GOL Shareholders Structure IOD : n.a. COD : In % SK Engineering Project Cost : USD 830 Million 25% Debt to Equity : 70:30 times RATCH XePian 25% Korea Western Power Lender : n.a. 24% Lao PDR Investment Amount (for RATCH) : USD 63 Million 43

44 Projects under Development Nam Bak Project Projects Summary Location : Technology : Total Capacity : Lao PDR Hydro Power Plant 160 MW. Project Progress Tariff proposal sent to EGAT Contributed capacity to RATCH: 40 MW. (25%) PPA : IOD : n.a. n.a. COD : In 2017 Project Cost : Debt to Equity : Lender : Investment Amount (for RATCH) : n.a. 70:30 times n.a. n.a. 44