Company Presentation Q1 2020 July 2020 Agenda 1. Corporate - - PowerPoint PPT Presentation

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Company Presentation Q1 2020 July 2020 Agenda 1. Corporate Overview 2. Key Developments from Q1 2020 to Date 3. Q1 2020 Consolidated Performance 4. Subsidiaries Performances 5. Consolidated Financial Position 2 Corporate

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Company Presentation – Q1 2020

July 2020

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SLIDE 2

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Agenda

1. Corporate Overview 2. Key Developments from Q1 2020 to Date 3. Q1 2020 Consolidated Performance 4. Subsidiaries’ Performances 5. Consolidated Financial Position

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Corporate Structure

Bangkok Expressway and Metro Public Company Limited (BEM) TTW Public Company Limited (TTW)

  • CH. Karnchang

Public Company Limited (CK)

Public

31.90%(1) 16.64%(1) 24.98%(1) 26.48%(1) 31.32%(2) 19.40%(3) 18.47%(3)

(1) As of 25 June 2020; (2) As of 23 April 2020; (3) As of 10 March 2019; (4) Total paid-up shares = 8,129,515,897 shares

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COD: Jan 2013 Ownership: 46.0% Capacity MW: 615 Equity MW: 283

  • 1. Nam Ngum 2 (NN2)

4

Our Projects

12% 88%

2,167

MW

Lao PDR Thailand

  • 3. Bangpa-In Cogeneration

(BIC1 & BIC2)

  • 2. Xayaburi (XPCL)

1,900 238 29

2,167

MW

Solar Hydro Cogen 11 2 1 4 10 5 6 7 8 9 3 12

Project Capacity Electricity Sales

  • 4. Bangkhenchai Solar

8.00 MW Aug 2012

  • 5. Phachi Solar

0.89 MW Feb 2019

  • 6. Banglen Solar

0.97 MW May 2019

  • 7. Phutthamonthon Sai 5

0.97 MW Jun 2019

  • 8. Mahachai Solar

0.72 MW Jun 2019

  • 9. Krathum Ban

0.51 MW Jul 2019

  • 10. Khlong Preng

2.67 MW Under-construction

Bangkhenchai (BKC)

  • 12. Chiangrai Solar

(CRS)

  • 11. Nakhon

Ratchasima Solar (NRS)

Installed Capacity Breakdown

Ownership: 100%

Total Installed MW Capacity = 2,167 MW Total Equity MW Capacity = 939 MW

COD: Oct 2019 Ownership: 37.5% Capacity MW: 1,285 Equity MW: 482 COD: Jun’13 / Jun’17 Ownership: 65.0% Capacity MW: 118 / 120 Equity MW: 76 / 78 COD: Mar 2012 Ownership: 30.0% Capacity MW: 6 Equity MW: 2 COD: Jan 2013 Ownership: 30.0% Capacity MW: 8 Equity MW: 2

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Key Developments During Q1 2020

CKP Announced Interim Dividend Payment

  • Postponed 2020 AGM of Shareholders to 3 August 2020

due to COVID-19

  • Paid Interim Dividend of Bt 0.030 per share from the

FY2019 Operating Results

TRIS Affirmed CKP’s Company and Issue Rating

  • Company Rating

: A / Stable

  • Issue Rating

: A- / Stable

CKP-W1 Expiration

  • Last Trading Date

: 29 April 2020

  • Exercise Date

: 28 May 2020

  • Delisting Date

: 29 May 2020

NN2 Successfully Issued Debentures No.1/2020

  • Date

: 5 March 2020

  • Amount

: Bt 600 mn

  • Rate / Tenor

: 2.45% / 5 yrs

  • Offering Type

: Private Placement

  • Investors

: Institutional Investors

  • Issue Rating

: A / Stable

TRIS Affirmed NN2’s Company and Issue Rating

  • Company Rating

: A / Stable

  • Issue Rating:

: A / Stable

5

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Support surrounding communities and medical personnel through various initiatives both in Thailand and Lao PDR

COVID-19: No Material Impact on Operation

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▪ Activated site isolation protocol to ensure minimum exposure to potential risk of COVID-19, including

  • Scheduled disinfection of work areas
  • Temperature check requirement
  • Availability of all preventive

equipment (mask, PPE, etc.) at all plant site

  • Safety & emergency response

training ▪ Restricted traveling activities with quarantine measures for any traveling parties in/out of plants ▪ Continue with all necessary maintenance activities to ensure top condition of power plants Balance Sheet & Cash Management ▪ Consolidated Cash-on-hands & short- term investment at Bt 5,159 mn ▪ Available Credit Lines of approximately Bt 10 bn ▪ CKP separate entity’s minimum cash can support over 2 years of normal Opex & financial cost. ▪ Strict cost control throughout

  • rganization

Operation Management Cash Flow Management Community Reach-Out

All power plants of CKP have been operating normally without any disruption from the COVID-19 situation. CKP has implemented strict preventive & response measures across all power plants and head office in Thailand and Lao PDR to ensure no interruption of electricity generation and business. Customer Management ▪ No impact to electricity sales to EGAT, PEA and EDL ▪ Close monitoring of industrial customers (Est. at 11% of consolidated revenue & 5% of EBITDA)

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Hydro, 43% Cogen, 53% Solar, 1% Project Mgt, 2% Others, 1%

3,762 3,586 3,551 4,584 4,295 1,222 357 55% 56% 51% 50% 49% 51% 20%

CKP’s Q1 2020 Consolidated Performance

The decline in Q1 2020 performance compared to the previous year was mainly due to: ▪ The decrease in Electricity Sales of NN2 as a result of low water inflow to the reservoir, which continued from last year, and; ▪ The increase in Share of Loss from investment in XPCL, driven also by lower-than-average water flow. Excluding Share of Loss from XPCL of Bt 341 mn, CKP’s NPAT would be Bt 1 mn.

Revenue Breakdown Unit: Bt mn Key Highlights Consolidated Financial Performance Unit: Bt mn

Hydro, 21% Cogen, 67% Solar, 2% Project Mgt, 2% Others, 7%

Q1 2020

1,762

Q1 2019

2,417

7 (1) Excluded non recurring item; (2) Included Share of Profits from JVs and Associate Company

412 214 159 599 769 139 (340) 6% 3% 2% 7% 9% 6% (19%) 2015 2016 2017 2018 2019 Q1/19 Q1/20 6,809 6,359 6,930 9,115 8,840 2,417 1,762

REVENUE EBITDA NPAT

EBITDA Margin NPAT Margin

(70.8%) YoY (27.1%) YoY

(1) (2)

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NN2: Q1 2020 Performance

Total Revenue(1) Monthly Electricity Sales and Water Inflow Tariff Structure Electricity Sales Volume Unit: Bt mn Unit: GWh

Year PE Tariff SE Tariff EE Tariff US$/ kWh Bt/ kWh Total Bt equivalent(2)/ kWh Bt/ kWh Bt/ kWh 2011-2012

(IOD Period)

0.02475 0.963 1.730 1.253 1.060 2013-2018

(First 6 years from COD)

0.02475 0.965 1.732 1.255 1.062 2019 Onward 0.02668 1.041 1.868 1.353 1.145

  • The decrease in Q1 2020 revenue was due to low water inflow.
  • NN2 declared 2020 as Drought Year to waive minimum average production

hour requirements to avoid any potential fine charges.

200 400 600 800 1,000 1,200 100 200 300 400 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity 2019 Electricity 2020 Water Inflow 2019 Water Inflow 2020

GWh MCM

End of May 2020 Water Level : +351.25 m.asl. Total Inflow Jan-May 2020 : 563 MCM Total Inflow Jan-May 2019 : 729 MCM

PE: 39 PE: 60

Components 2016 2017 2018 2019 Q1 2020 PE 2,032 1,829 1,980 1,675 200 SE 71 25 130 4

  • EE
  • 344
  • TE

7 4 1 6

  • Account-PE
  • Account-SE
  • Total

2,109 1,857 2,455 1,685 200

PE: 110

(55.0%) YoY 3,883 3,815 3,318 3,949 3,048 1,033 376 20 18 9 12 367 3 91

3,903 3,833 3,328 3,962 3,415 1,037 467

2015 2016 2017 2018 2019 Q1/19 Q1/20 Revenue from Sales of Electricity Other Income

(1) SEAN’s Consolidated Financial Statements; (2) Long-term exchange rate assumption = Baht 31 per US$

PE: 120

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XPCL: Q1 2020 Performance

(1) Excluding one-time gain on exchange; (2) Long-term exchange rate assumption of Baht 31 per US$

PE Tariff SE Tariff US$ per kWh Bt per kWh Total Bt equiv.(2) per kWh Bt per kWh 0.0374 1.271 2.4298 1.652

1,565 1,929 1 8

1,567 1,937

Q4 2019 Q1 2020

Revenue from Sales of Electricity Other Income GWh CMS

368 297 332 404 435 1,545 1,300 1,411 1,784 1,788 500 1,000 1,500 2,000 200 400 600 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Electricity 2020 Monthly Average Water Flow 2020

Monthly Average Water Flow for Q4 2019 : 1,745 CMS Monthly Average Water Flow for Q1 2020 : 1,419 CMS

Monthly Electricity Sales and Water Flow Total Revenue Tariff Structure Unit: Bt mn

(1)

Q1 2020 Core EBITDA Margin 88.5%

Average Cost of Debt

6.46% 6.45% 6.43% 6.42% 6.01% 5.83% 5.31%

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 May-20

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BIC: Q1 2020 Performance

Total Revenue Monthly Electricity and Steam Production Unit: Bt mn Electricity and Steam Sale Volume Unit: GWh/Tons

2016 2017 2018 2019 Q1 2020 EGAT 617 959 1,277 1,250 291 IUs 136 158 276 311 78 Total (GWh) 753 1,117 1,553 1,561 369 Steam (Tons) 97,503 104,645 94,459 87,486 22,504

  • Avg. gas price

(Bt/MMBTU) 240 236 258 273 267 2,655 2,293 3,316 4,865 5,030 1,292 1,180 16 2 6 7 8 1 2,670 2,296 3,322 4,871 5,038 1,293 1,180 2015 2016 2017 2018 2019 Q1/19 Q1/20 Revenue from Sales of Electricity and Steam Other Income (8.7%) YoY

Q1 2020 Revenue decreased y-y, primarily due to:

  • Maintenance outage of one of two gas turbine units of BIC1 in January
  • Lower natural gas price, which resulted in a decrease in Energy Payment

revenue

2,000 4,000 6,000 8,000 10,000 50 100 150 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity 2019 Electricity 2020 Steam 2019 Steam 2020

GWh Tons

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BKC: Q1 2020 Performance

Total Revenue(1) Monthly Electricity Production(1) Unit: Bt mn Electricity Sales Volume(1) Unit: GWh

2016 2017 2018 2019 Q1 2020 Electricity (GWh) 13.36 12.71 12.27 15.54 4.69

  • Avg. Ft (Bt/kWh)

(0.33) (0.35) (0.30) (0.20) (0.23) 158 148 140 136 145 37 39 2 1 1 3 2 1 160 149 141 139 147 37 39 2015 2016 2017 2018 2019 Q1/19 Q1/20 Revenue from Sales of Electricity Other Income +7.3% YoY

Q1 2020 Revenue increased y-y, mainly driven by five new solar rooftop power plants, which started operations during 2019.

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Electricity 2019 Electricity 2020 GWh

(1) Include Revenue and Electricity Sales of new solar rooftop power plants

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Consolidated Financial Position

4.53% 4.20%4.13% 3.99% 3.97% 4.07% 3.55% 3.51% 3.54% 3.49% 3.36% 3.25%

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 May-20

0.72x 0.94x 0.97x 0.98x 0.81x 0.85x 0.53x 0.67x 0.74x 0.76x 0.62x 0.65x

2015 2016 2017 2018 2019 As at 31 Mar 2020

D/E Ratio Net IBD/E Ratio

Long-term Loan and Debentures(2) Financial Position Leverage Ratios Unit: Bt mn Unit: Bt mn

6,500 14,400 2,877 3,666 181

CKP NN2 BIC1 BIC2 BKC

(1)

27,624

31,812 30,506 30,659 31,522 35,547 34,218 21,908 28,030 28,428 29,681 27,511 27,898 846 769 1,375 1,300 1,133 1,269

54,567 59,305 60,462 62,503 64,191 63,385

2015 2016 2017 2018 2019 As at 31 Mar 2020

Total Equity IBD Other Liabilities

CKP’s Debentures Covenant: Net IBD/E not exceeding 3.00x

Average Cost of Debt

NN2 Bt 6.0 bn debentures NN2 Bt 3.0 bn debentures CKP Bt 6.5 bn debentures NN2 Bt 6.0 bn debentures

20,900 (76%) 6,724 (24%)

Debentures Loan from financial institutions

27,624

NN2 Bt 0.6 bn debentures

(1) D/E calculated from Total Liabilities divided by Total Shareholders’ Equity; (2) Loan and debentures outstanding before transaction costs 12

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2020 Targets

Key Focus

  • Hydro power projects in Lao PDR
  • Thermal & renewable projects in Thailand
  • Other opportunities in Southeast Asia region

CK Power’s Key Activities & Potential Pipeline 2021 - 2025 2020 Plan & Potential Investments

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  • NN2: Improve operation efficiency & cash management

Issue debentures of Bt 1.6 bn to improve financial cost

  • XPCL: Ramp-up efficiency after COD

Manage & improve financial cost

  • Potential investment in new hydro 1,000-1,500 MW
  • Improve overall plant efficiency
  • Add 5-10 MW per year in new solar investments
  • Enhance Environmental, Social & Governance (ESG) initiatives
  • Strengthen shared service functions & human resource capabilities
  • Bt 4.0-4.6 bn of new investment/Capex plan
  • Up to Bt 3.5 bn of debentures issuance depending on new investment requirements

Hydro Cogeneration Solar CKP Group

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Thank You

Contact

Investor Relations Department +66 (0) 2 691 9720 # 17035 ir@ckpower.co.th www.ckpower.co.th

The information contained in this presentation is intended solely for your personal reference only. This presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this presentation. Some statements made in this presentation are projections and forward-looking statements, with respect to CKPower’s corporate plans, strategies and beliefs and other statements that are not historical facts and are subject to various risks and uncertainties. These statements can be identified by the use

  • f forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on the assumptions and beliefs of

CKPower’s management in light of the information currently available to CKPower. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation is, or should be relied on as a promise or representation of CKPower as to the future.

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