Download - Gunkul Engineering Public Company Limited
Strictly Private and Confidential
Content
I. Company Overview
II. Financial Highlight
III. Investment Highlights
IV. Projects Update
2
Strictly Private and Confidential
Gunkul Engineering PLC (“Gunkul”) operates across the entire renewable energy value chain
Founded in 1982 as an electrical equipment trader. Gunkul later
expanded into manufacturing, EPC business, and filed for IPO in
2010 to grow its renewable generation business
Trader, manufacturer and EPC contractor: Complete value chain
business model provides end-to-end solution in the development of
renewable energy projects
Renewable energy power producer: Power projects with contracted
capacity(1) of 543.1 equity MW in Thailand, Myanmar, Japan and
Malaysia (approx. 64% solar, 34% wind, and 2% gas). As of Q4
2018, we have ~314.5 equity MW in operation
Approx. US$ 705.83 Million market capitalization end of September
2018 (SET:GUNKUL)
Notes:
(1) Including operational, under construction, and secured pipeline.
(2) As of July 2018
(3) Gunkul Group is a holding company with the Dhumrongpiyawut family owning 99.6% of the Group
(4) Dhumrongpiyawut family accounts for 54.0% of Gunkul
Reliable manufacturer and supplier of over 5,000 electrical
equipment and products1
2
World-class renewable energy projects with a visible and
robust pipeline across Asia3
Reputable one-stop renewable energy EPC and O&M
service provider with over 15% market share in Thailand
Gunkul Shareholders(2)
Gunkul Group(3) (4)
49.8%
Mr. Gunkul Dhumrongpiyawut
4.2%
UOB Kay Hian (HK)
2.9%
Others
37.4%
Siam Commercial Bank
3.1%
Thai NVDR
2.2%
Bua Luang Long Term Equity Fund
2.2%
Disconnecting
Switch
Arrester SF6 gas switchLow-voltage
switch
Gunkul Overview
4
Strictly Private and Confidential
From Equipment Trading to Renewable Energy
Secured PPA for
60MW Wind Energy
Development (WED)
Secured PPA for 30.9MW
Gunkul Chubu Powergen
(GCPG)
Founded as an
electrical
equipment trader
1982
Set up factory
for
manufacturing
1992 2010
Initial Public Offering
Entered into renewable
energy
sector as EPC and O&M
contractor
1st solar project
1st wind project
2012
1st gas engine power plant
25MW gas engine power
plant in Myanmar (GKMCP)
2013
Expanded into solar roof
business along with
reputable partners
Solar roof business
2014
Solar PV module manufacturing
1 of 4 manufacturers in Thailand
producing solar PV modules under Thai
Industrial Standard
2015
100
2011
Wind project MOU in
Myanmar
Signed MOU with
Myanmar Ministry of
Electric Power to develop
1,000MW Wind Project
Supplied and set up
Thailand’s
first wind turbine for EGAT
Gunkul transformed itself from a trading company with volatile earnings to a renewable energy player that has
stable cashflow and high margins
Gunkul’s EBITDA from Renewable Power is Expected to Increase from 86% in 2017 to 88% and 92% by 2018 and 2019
Note:Based only on the secured 513.1 equity MW in our portfolio and only 371.3MW to be COD by 2019
Target to
achieve 1,000
contracted
equity MW by
2020
1st Japan Solar Project
31.8MW solar power
plant in Japan (Sendai)
2017 2018
5
1st Solar Rooftop
Private PPA
Structured the
Solar Rooftop
business to be
Private PPA
which the off-
taker are
reputable
companies
1st Malaysia
Solar Project
29.99 MW or
20.99 Equity MW
solar power plant
in Malaysia
86%
14%
89%
11%
92%
8%
2017 EBITDA Breakdown 2018F EBITDA Breakdown 2019F EBITDA Breakdown
Renewable Power Generation
Trading & EPC
Strictly Private and Confidential
High Quality Renewables Asset Portfolio
6
THAILAND
MYANMAR
MALAYSIA
Solar Farm ( 96.1 MW)
Fully COD ( 6 Projects)
Total Gross / Equity (MW) 157.9 / 96.1
Wind Farm ( 170.0 MW)
Fully COD ( 3 Projects)
Total Gross / Equity (MW) 170.0 / 170.0
Solar Rooftop ( 2.8 MW)
Fully COD (9 Projects)
Total Gross / Equity (MW) 5.5 / 2.8
Private PPA Solar Rooftop ( 32.6 MW)
Fully COD ( 1 Project)
Total Gross / Equity (MW) 1.0 / 1.0
Under Construction ( 3 Projects)
Total Gross / Equity (MW) 31.6 / 31.6
Gas-Fired Plant ( 12.8 MW)
Fully COD ( 1 Projects)
Total Gross / Equity (MW) 25.0 / 12.8
JAPAN
Type Scheme Thailand Japan Malaysia Myanmar Total
Feed in Tariff 68.9 207.1 21.0 - 297.0
Adder 27.2 - - - 27.2
Feed in Tariff - - - - -
Adder 170.0 - - - 170.0
Feed in Tariff - - - 12.8 12.8
Adder - - - - -
Feed in Tariff 2.8 - - - 2.8
Adder - - - - -
Private PPA 32.6 - - - 32.6
Total 302.1 207.1 21.0 12.8 543.1
Solar Farm ( 207.1 MW)
Fully COD( 1 Project)
Total Gross /Equity (MW) 31.8 / 31.8
Under Construction ( 3 Projects)
Total Gross /Equity (MW) 175.3 / 175.3
Solar Farm ( 20.99 MW)
Under Development ( 1 Projects)
Total Gross / Equity (MW) 29.99 / 20.99
Note:(1) The figure is as of 1 Nov, 2018
Strictly Private and Confidential
Gunkul will continue to grow in Renewable Business to transform
itself into a company with stable income and high margin
Vision: To Become an Asia’s Leading Renewables Company
7
Expand EPC business into Transmission Line & Substation
sectors which support Thailand Electrical System
By 2020, step to secure 1,000MW by increasing
capacity through domestic and international
Enhance Company’s Growth by entering into a Private
Producer Segment
Embrace new technology to drive growth and expose new
opportunities to invest in next step, including small scale
customers
PEAPEA’s Outstanding Project (2019-2023)
in Transmission Line & Substation
169,305 THB Million (1)
Reputable Department Stores
Industrial / Companies
Notes:
(1) https://www.pea.co.th/Portals/0/Document/cpd/60-4%20PEA%20Website.pdf
Smart Living by Gunkul
1.
2.
3.
4.
Total (MW)Existing (MW)
Potential deal (MW)
472302
200
207207
-
12121
100
100-
100
11313
100
Others
Strictly Private and Confidential
Mainly decrease in accounts
receivable and inventory due
to the decrease in EPC
service revenue
3,121 3,360
8,590 9,749 10,184
9,055
212 447
484
463 592
718
178 20
3,369
8,562
13,519
19,453
663
1,151
2,442
2,000
3,200
3,292
405
2,261
3,930
4,822
3,232
2,357
3,257 4,654
12,641
19,523
24,745
29,107
1,098
1,078
2,678
3,605
4,824
4,857
225
1,507
3,497
2,468
1,158
909
4,580 4,580
7,239 7,239
18,815 18,815
25,596 25,596
30,377 30,726
34,874 34,874
0.19x
0.68x
0.85x
1.37x
1.64x
2.41x
0
10,000
20,000
30,000
40,000
2013 2014 2015 2016 2017 3Q2018
0.19x 2.4x0.68x 0.85x 1.37x 1.70x
0.8 1.01.2 0.8 1.0 0.8
Total Assets, Liabilities, and Equities
THB MM
Non-Current AssetsOther Current AssetsCash Current Debt Other Current Liabilities Non-Current DebtOther Non-
Current Liabilities
Total Interest Bearing Debt / Equity (times)
Total Equity
IBD / Equity
Current Ratio
Financial Position
Assets Liabilities
&Equity
Assets Liabilities
&Equity
Assets Liabilities
&Equity
Assets Liabilities
&Equity
Assets Liabilities
&Equity
Assets Liabilities
&Equity
9
Strictly Private and Confidential
Breakdown by Business Unit
63%50%
85%
42%
35%
49%
14%
31%1%
1%
1%
27%
868
541 674 615
712
520
0
1,000
2,000
3,000
4,000
5,000
6,000
2013 2014 2015 2016 2017 9M2017
9M2018
Manufacturing and Trading Revenue
EPC and O&M Revenue
Power Generation Revenue
EBIT
Net Profit
2,9763,367
4,4604,855
45%
20%
35%
4,747
3,641
24%
46%
30%
+588
THB MM
54%
42%
24%
18%
22%
15%
39%
19%
38%
22%
EBIT
Margin
Net Profit
Margin
36%
15%
Decrease in EPC service
revenue while EBITDA
Margin and Net Profit Margin
include Gain on disposal
investment in Gunkul Chubu
Powergen (“GCPG”)
Decrease in Trading Revenue
while Power Generation
Revenue, which has higher
EBITDA Margin and Net Profit
Margin, has increased
2,045
32%
43%
25%
31%
17%
Revenue Breakdown & Earnings
Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit Revenue EBIT Net Profit
10
816
1,404
478
1,436
29.5%
42%*Normal
Operation
Strictly Private and Confidential
2017-2019 Forecasted Revenue & EBITDA
11
4,855
6,050
7,560
1,944
3,300
4,500
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2017* 2018** 2019**
Revenue EBITDA
(+25%)
(+25%)
(+70%)
(+30%)
* Fully booked in 2017
** These projections are based on the information as of 2018
Strictly Private and Confidential
Solid Growth Potential for Renewable Energyin Thailand
13
1
Electricity Consumption will Continue to Outstrip Generation
Growth in Renewable Energy Capacity
Looking toward 2036, solar power plays a
significant part in the growth of renewable energy
at 4.4% p.a. while the wind power demonstrates
the strong development at 8.8% p.a.
Solar, 48.3%
Biomass, 31.2%
Wind, 11.0%
Biogas, 5.8%
Waste,3.4%
Solar36.7%
Biomass34.1%
Wind18.4%
Energy Crops, 4.2%
Biogas3.7%
Waste3.1%
2036
16,352 MW3
2017
5,529.0 MW2
Source:
Ministry of Energy, Thailand
182.5 188.5196.1
203.5 210.8 218.1 225.3232.9
185.5192.3
199.1207.2
214.9222.4
230.6239.6
Generation Consumption
Source:
BMI Research Source:
PDP 2015, Thailand
12.0%12.0%
16.4%17.5% 19.3%
2017 2020F 2025F 2030F 2036F
Combine Cycle Hydro Renewable Thermal Cogeneration other
Generating Capacity By Power Plant Types (MW)Thailand Electricity Generating and Consumption (TWh)
46,1091
54,141
60,40363,037
70,335
Note:
(1) The sum of EGAT capacity and VSPP
Note:
(2) The total number is retrieved the sum from EGAT, IPP, SPP and VSPP, retrieved from ERC, (3) The number comes from PDP
Strictly Private and Confidential
14
Fast Growth in Renewable Energy Sector Supported by Favorable Government Policies
2
Source: Japan’s Energy Plan, Ministry of Economy, Trade and Industry, Sustainable Energy Development Authority Malaysia, The Eleventh Malaysia Plan, Vietnam Power
Development Plan for the period 2011-2020, Highlights of the PDP 7 revised, by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Japan’s Energy Plan, 2015 The Eleventh Malaysia Plan,2015 and
National Renewable Energy Policy &
Action Plan, 2009
Power Development Plan7,
Revised 2015
To increase the domestic
energy dependency rate
from 6.1% in 2013 to nearly
25.0% in 2030
Promote the green growth by
establishing the supportive
financing mechanisms
Provide adequate electricity for
the growing demand through
the construction of the power
transmission grid
Promote the use of renewable
energy to account for
22.0-24.0% in 2030
Increase the share of renewable
energy in electricity generation
from 556MW in 2017
to 3,484MW (13.0%) by 2030
Prioritize the use of renewable
energy from less than 1% in
2016 to more than
10% in 2030
Promote the generation from
- solar: to 7.0% and
- Wind: to 1.7% of the total
generating capacity
Promote the generation from
- solar: from 372MW in 2017 to
854MW (3.2%) by 2030
Promote the generation from
- solar: from negligible level to
12,000MW (3.3%) and
- Wind: from 140MW to 6,000MW
(1.0%) of the total generating
capacity
Strictly Private and Confidential
15
Track Record of Accelerated Growth3
15.8 10.4 1.0
12.8 2.8
58.3 10.0
50.0
2.6
1.0
50.0 314.5
1.1 33.5
8.0
2.6
60.0
31.8
0.5
20.010.0
21.0
66.8
75.0 542.4
0
200
400
600
GCPGCOD2011
GPSCOD2012
NKCOD
Q4 2013
GKMCPCOD
Q4 2013
SolarRooftop
CODQ2 2014
RNSCOD
Q4 2015
BMPSCOD
Q2 2016
WEDProject 1
CODQ1 2016
WEDProject 2
CODQ3 2016
ECOQ4 2016
PrivatePPACOD
Q2 2017
GNPCOD
Q1 2018
KWECOD
Q2 2018
SendaiCOD
Q4 2018
OperationalCapacity
PrivatePPACOD
Q1 2019
KimitsuCOD
Q1 2019
PrivatePPACOD
Q1 2019
PrivatePPACOD
Q2 2019
PrivatePPACOD
Q3 2019
KenyirGunkulCOD
Q4 2019
UtsunomiyaCOD
Q1 2022
IwakuniCOD
Q1 2022
TotalEquity MW
Solar Gas Wind
Gunkul demonstrated a track record of successful capacity build-up and this translates into more stable and
recurring electricity revenue
Note:
Source: Company Filings and Company Information
Equity MW
Under Construction / Under Development
(Q4 2018 – 2022)
In Operation
(2011 – Q4 2018)
Strictly Private and Confidential
16
Vertically Integrated Business Covering Downstream Segments of Renewable Energy
4
Trading and ManufacturingEngineering, Procurement
& ConstructionPower Generation
Samples of In-House Products
Cable and accessories, capacitor, fuse and switch, grounding, hardware and connector, Insulator, lightning protection, live part cover, maintenance equipment, meter, preformed, tool and instrument, transformer
Distribution
Line
Transmission
LineCable and accessories, fuse and switch, hardware and connector, insulator, lightning protection, maintenance equipment, tool and instrument
Power PlantWind turbine component, solar panel component
Low Voltage
Line
Capacitor, explosion proof product, fuse and switch, grounding, hardware and connector, insulator, lightning protection, meter, preformed, street lighting and control, telephone hardware
SubstationBattery and charger, capacitor, grounding, maintenance equipment, meter, tool and instrument, transformer
Low-voltage
switch
Cutout
Arrester
Disconnecting
Switch
SF6 gas switchGunkul’s Own Projects
“Allow Gunkul to exploit economies of scale and cost saving advantages”
Solar
Wind
Gas Engine
Geographical
DiversificationEnergy Mix
Thailand: 53%
Japan: 41%
Malaysia: 4%
Myanmar: 3%
Solar: 64%
Wind: 33%
Gas Fired: 3%
Note: Above pie charts demonstrate Existing Equity MW
Existing Power Plants
Total Equity Capacity of 543 MW
543 MW
(Equity)
543 MW
(Equity)
Project Reference
Project Owner MW EPC O&M
1) GPS 26.00 P P
2) GCPG 30.90 P P
3) NK Power Solar 1.00 P P
4) CK & Sun Solar
Power Plant8.00 P P
5) Solatra Solar
Power Plant8.00 P
6) BSE (NMA) 12.50 P P
7) BSE (CPM1) 12.50 P P
8) Solar Rooftop 26.78 P P
9) RNS 87.00 P
10) BMPS 8.00 P P
11) ECO 5.00 P P
12) WED (1) 60.00 P
13) GNP (1) 60.00 P
14) KWE(1) 50.00 P
Total 395.68
Note: (1) Only Balance of Plant Part
Strictly Private and Confidential
17
Cost-savings by Rooftop Solar Private PPA
Year 1-20: Electricity charge will be paid to Gunkul at
agreed purchase price
Year 1 2 … 20 21 … 24 25
At the end of year 20:
Asset will be transferred to purchaser
Household Smart living by GUNKUL
Gunkul has expanded business further
• G-VISION
• G-SYSTEM
• G-SERVICE
• G-EXPERIENCE
• G-SMART
Private PPA between
Gunkul and Purchaser
PPA Life of 15-20 years
Electricity will be charged at
discount rate
Capturing Untapped Potentials of Rooftop Solar & New Technology
5
Strictly Private and Confidential
18
Experienced Management Team Able to Deliver on Growth Targets
6
The Management team, who has successfully grown the Company to where it is today, is committed to
achieving Gunkul’s growth targets
• 21-year expertise in manufacturing/ supplying electrical
products & renewable energy products, and generating
electrical power from renewable energy resources
• Over 21-year experience with Gunkul
• CEO since 2012
• Managing Director 1998-2012
Miss Sopacha
Dhumrongpiyawut
Chief Executive
Officer
Mr. Thamrong
Chankraithong
Senior Vice
President, Sales &
Marketing
• 24 years of experience in the power industry
• 24 years of experience with Gunkul
• Senior VP, Sales & Marketing since 2010
• Assistant General Manager, Public Sector and
International 2008-2010
• 12-year expertise in Renewable Energy business
• Over 12-year experience with Gunkul
• Leading Gunkul to Initial Public Offering in 2010
• Managing Director since 2012
• Deputy Managing Director 2010-2012
• Assistant Managing Director 2007-2010
Dr. Somboon
Aueatchasai
Managing Director
Mr. ThitipongTecharatanayuenyong
Chief Financial Officer
• Over 17-year experience in financial management of
Thailand’s listed companies. 5 years of experience in
the power industry
• Expertise in capital market and derivative products
• CFO and member of the Risk Management committee
and Secretary since 2014
• 14 years of experience in the power industry
• 10 years of experience with Gunkul
• Deputy Managing Director since 2016
• Assistant Managing Director, Business Development &
Strategic Planning 2014-2015
Mr. Phongsakorn
Damnoen
Deputy Managing
Director
Miss Naruechon
Dhumrongpiyawut
Assistant Managing
Director
• 11 years of experience in the power industry
• 11 years of experience with Gunkul
• Assistant Managing Director since 2017
• Senior VP, Strategic Planning and Investment 2014-
2017
• Senior VP, Logistics since 2016
• VP, Strategic Planning and Investment 2012-2014
• 22 years of experience in the power industry
• 22 years of experience with Gunkul
• Senior VP, Factory since 2010
Mrs. Areewan
Chaloemdan
Senior Vice
President,
Factory
• 22 years of experience in the power industry
• 4 years of experience with Gunkul
• Senior VP, PM & OM since 2015
Mr. Phairot
Phanukan
Senior Vice
President, Project &
Operation
Management
• 16 years of experience in the power industry
• 16 years of experience with Gunkul
• Senior VP, Human Resource and Administrator since
2010
• Member of Nomination and Remuneration Committee
since 2008
Mrs. Somluk
Kanuenghet
Senior Vice
President,
Human Resource
and Administrator
• 26 years of experience in the power industry
• 12 years of experience with Gunkul
• Senior VP, Gunkul Energy Solution & Lighting since
2016
• VP, Logistics 2011-2015
Mr. Phudis
Triwilaskul
Senior Vice
President, Gunkul
Energy Solution &
Lighting
• Founder and Chairman
• 36-year extensive experience in Energy
business
• First mover in Renewable Energy business
Mr. Gunkul
Dhumrongpiyawut
Chairman / Founder
Strictly Private and Confidential
Wind Projects
Korat Wind Energy
Installed Capacity : 50 MW
COD : 20 June 2018
Greenovation Power
Installed Capacity : 67.5 MW
COD : 27 March 2018
Strictly Private and Confidential
GNP – Wind Project
Project : Sarahnlom Wind Farm
Location : Huay Bong, Dan Khun Tod,
Nakorn Ratchasima
Contract Capacity : 60 Megawatts
Turbine Capacity :
2.0 & 2.1 Megawatts
(33 Wind Turbine Generators)
Commercial Operation Date :
27 March 2018
Strictly Private and Confidential
GNP – Wind Project
The world's highest
Tubular wind
turbine
: overall height of 210 M
Strictly Private and Confidential
KWE – Wind Project
Project : Mittraphap Wind Farm
Location : Don Muang and Nong Nam Sai, Sikhio, Nakorn Ratchasima
Contract Capacity : 50 Megawatts
Turbine Capacity : 2.5 Megawatts (20 Wind Turbine Generators)
Commercial Operation Date : 20 June 2018
Strictly Private and Confidential
Sendai – Japan Solar Project
Sendai
Solar Radiation Map of Japan
Project Description
Project Name Sendai
Location Sendai, Japan
Contract capacity 31.8 MW
Installed capacity 38.1 MW
Project Milestones
All Permit Completed
COD : 1 November 2018
SENDAI
Strictly Private and Confidential
Kimitsu – Solar Project
Solar Radiation Map of Japan
Kimitsu
Project Description
Project Name Kimitsu
Location Kimitsu, Japan
Contract capacity 33.5 MW
Installed capacity 40.4 MW
Project Milestones
All Permit Completed
SCOD 1Q2019
KIMITSU
Strictly Private and Confidential
Kimitsu – Solar Project
PV module installation on steep slope (Zone 2 - Block 4)
PV module installation (Zone 2 - Block 3)
Strictly Private and Confidential
Disclaimer
47
This presentation has been prepared by Gunkul Engineering Public Company Limited (“Gunkul”) for informational purposes only and
does not constitute a recommendation regarding the securities of Gunkul or any of its subsidiaries. This presentation is not intended as,
and does not form part of, any offer to sell or solicitation or invitation to buy or subscribe for any securities. Neither this presentation nor
anything contained herein shall form the basis of, or be relied on in connection with, any contract or commitment whatsoever.
Gunkul makes no representation or warranty, either expressed or implied, in relation to the accuracy, completeness or reliability of the
information contained in this presentation. The information set out herein may be subject to updating, completion, revision, verification
and amendment without notice and such information may change materially. The information in this presentation should not be regarded
by recipients as a substitute for the exercise of their own judgment.
This presentation may contain forward-looking statements and estimates with respect to the future operations and performance of
Gunkul, its subsidiaries and affiliates. These forward-looking statements are subject to various assumptions, risks and uncertainties,
many of which are difficult to predict and are generally beyond the control of Gunkul. Such assumptions, risks and uncertainties could
cause actual results and developments to differ materially from those expressed in or implied by the forward-looking statements. Neither
Gunkul nor any of its directors, officers, employees, advisors or representatives assumes any responsibility to update any of the forward-
looking statements to conform such statements to actual results or developments, to reflect the occurrence of anticipated results or
otherwise. Neither Gunkul nor any of its directors, officers, employees, advisors or representatives nor any other person accepts any
liability whatsoever for any loss, however arising, from any use of this document or its contents or otherwise arising in connection
therewith.
Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinions expressed by
other business areas or groups of Gunkul as a result of using different assumptions and criterion.