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Energy Absolute Energy for the Future
E@ at Glance
2
Established
In 2006 to produce palm oil
Core Business
Energy (Renewable and Utilities)
Secondary Market
The Stock Exchange of Thailand since 30 Jan 2013
Credit Rating
Corporate rating : A
CG Rating
Excellent
Mr. Somphote Ahunai Chief Executive Officer
Education • MBA from University of Pittsburgh, USA • Bachelor of Engineering from Chulalongkorn
University, Thailand Previous Experience • Analyst and Researcher in USA. • Managing Director of a Securities Brokerage
company in Thailand • Managing Director of a Renewable Energy
company in Thailand
Mr. Amorn Sapthaweekul Deputy CEO and Chief Finance Officer
Education • Master of Science (Finance)
from Chulalongkorn University, Thailand • Bachelor of Business Administration
(Finance and Banking) from Thammasat University, Thailand
Previous Experience • Investment Banker and Financial Advisor, • Director in a Renewable Energy company
Somphote Ahunai (CEO),
44%
Amorn Sapthaweekul
(CFO) , 4% Domestic Fund, 4%
Thai Juristic, 5%
Foreign Juristic, 35%
Others, 8% At 13 March 2019
Shareholder Structure
Market Capitalization (as of 14/8/19)
Approximately THB 182.77 bil. (US$ 6 bil.
3
Our Integrated Business Building Eco System
“A leader in alternative energy business,
by using the modern technology and environmentally friendly”
Biodiesel & Glycerin Green Diesel & PCM
2009
Solar Power 278 MW 2011
Wind Power 386 MW
2015
Energy Storage Lithium-ion Battery
2016
Electric Vehicle “MINE Mobility”
2018
Electric Ferry 2019
Charging Station 2017
Renewable Power Business Started from a small 8-MW solar power plant then gain knowledge to develop higher technology.
4
278 278 278
126 126
386
8 98 98
188 278
404 404
664
0
200
400
600
800
2012 2013 2014 2015 2016 2017 2018 2019
MWh
Solar Wind
Solar
42% Wind
58% 664
278 MWh 386 MWh
+ 8MW Lopburi
+ 90MW Nakornsawan
+ 90MW Lampang
+ 90MW Phitsanulok
+ 126MW Had Kanghan (Songkla & Nakornsri tammarat)
+ 260MW Hanuman (Chaiyaphum)
Electricity Price Structure
5
Base Tariff
Adder* 10 years
from COD
Ft Fuel
Adjustment Charge
Baht/ kWh
-0.116 Bt./kWh For May – Dec 2019
Peak Time: Weekdays
09.00 –22.00
4.2243 Bt./kWh
Off-Peak Time: Weekdays
22.00 – 09.00 + Weekend + Holidays
2.3567 Bt./kWh
Solar Wind
8 Bt. 6.5 Bt. 3.5 Bt.
Lopburi 8 MWh
Until Oct 2022
Nakornsawan 90 MWh
Until Dec 2023
HKH 1 = 36 MWh
Until Mar 2027
HKH 2&3 = 90 MWh
Until Jun 2027
HNM 1&8 = 90MWh
until Jan 2029
HNM 5&9 = 90MWh
until Mar 2029
HNM 10 = 80MWh
until Apr 2029
Lampang 90 MWh
Until Feb 2025
Phitsanulok 90 MWh
Until Apr 2026
* After 10-year of adder period, the price structure will be Base Tariff + Ft.
Solar Power 278 MW
6 1 acre = 2.529 rais
Nakornsawan (THB 6.7 bil)
Contracted Cap: 90 MW
Installed Cap : 126.126 MW
Technology: Fixed system
COD : 23 Dec 2013
Land area: 1,858 Rais (735 acres)
Adder : 6.50 baht/kWh
Lopburi (THB 812 mil)
Contracted Cap: 8 MW
Installed Cap : 9.33 MW
Technology: Fixed System
COD : 17 Oct 2012
Land area: 315 Rais (124.5 acres)
Adder : 8 baht/kWh
Phitsanulok (THB 9.5 bil)
Contracted Cap: 90 MW
Installed Cap : 133.92 MW
Technology: Tracking system
COD : 1 Apr 2016
Land area : 1,800 Rais (732 acres)
Adder : 6.50 baht/kWh
Lampang (THB 8.07 bil)
Contracted Cap: 90 MW
Installed Cap : 128.396 MW
Technology: Tracking system
COD : 17 Feb 2015
Land area : 2,354 Rais (930 acres)
Adder : 6.50 baht/kWh
1 2
3 4
Wind Power 386 MW
7
Hanuman : HNM
(Chaiyaphum)
THB 20 bil.
Contracted Cap: 260 MW
COD :
HNM 1&8 = 90 MW COD 25 Jan 19
HNM 5 = 48 MW COD 22 Mar 19
HNM 9 = 42 MW COD 30 Mar 19
HNM 10 = 80 MW COD13 Apr 19
Adder : 3.50 baht/kwh
2 Hadkanghan : HKH
(East Coast Southern)
THB 10.4 bil.
Contracted Cap: 126 MW
COD :
HKH 1 = 36 MW COD 3 Mar 17
HKH 2 = 45 MW COD 10 Jun 17
HKH 3 = 45 MW COD 23 Jun 17
Adder : 3.50 baht/kwh
1
Project Specification : Technology from
Siemens Gamesa, Spain
103 sets of Wind Turbine Generator at 2.5 MWh each
Hub height 153 m.
Blade length 63 m.
Cut in wind speed = 3 m/sec
Project Specification : Technology from
Vestas, Denmark
70 sets of Wind Turbine Generator at 1.8 MWh each
Hub height 137 m.
Blade length 51 m.
Cut in wind speed = 3 m/sec
Output from power production
8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Production output : YOY
Total Production output : QOQ
In Q2/2019 : Total power output = 336 million kWh. increased
from Q2/2018 = 126 million kWh. (+40%)
Power production output from Wind Power Plants increased
244% from Q2 last year due to
• Additional output from HNM operation which started
commercial operation in Q1 and Q2 this year
• 11.98% higher wind speed at HKH project compare to
Q2/2018
Power production output from Solar Power Plants increased
6% from Q2 last year due to stronger solar irradiation.
395 561 618 602
325
181 292
263
0
250
500
750
1,000
2015 2016 2017 2018 2Q/2019
Mil.kWh
163 168 147 141 153 162 136 151 154 171
3 20
82 76 67 48
116
60
98
165
0
100
200
300
400
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
Mil.kWh
Solar Wind
Seasonal of Wind in Thailand
Biodiesel Production
9 Add a footer
Location Kabinburi Industrial Estate, Prachinburi under BOI promotion & privileges
Plant Capacity • Biodiesel 800,000 Liters per day • Pilot production of green diesel/PCM 1 Ton per day • Refined Glycerin 80 Tons per day (by product)
• B100 volume in 2Q/2019 = 100 mil.liters increased 21.51% but average price decreased
19.84% due to over supply of raw material and high competition.
• Glycerin volume in 2Q/2019 = 7 mil.kg. increased 15.52% price decreased 34.75% due to
high competition in export market
134
175 188
152
174 158
100
0
50
100
150
200
2013 2014 2015 2016 2017 2018 2Q/2019
Mil.Ltr.
Biodiesel Business
Started from B100 and pure glycerin then expand to higher value products, Green Diesel and PCM
Total feed capacity 130 tons/day Total Investment of New Plant in Rayong THB 1 bil.
10
CPO Purification
Glycerin Sell to pharmaceuticals , Cosmetics, Personal products
Sell to major oil refinery companies B100
Advance product of biodiesel Enhancing diesel engine capacity
Green Diesel
PCM
BioPCM works as a thermal storage battery and is pre-frozen or warmed for a particularly hot or cold evening.
Green Diesel & PCM Production
B100 & Glycerin Production
Investment in Amita Technologies Inc., Taiwan THB 3.09 bil.
11
Jan 2017 EA subscribed new shares from
capital increase, proceed for capacity expansion.
Nov 2017 EA acquired shares from Taiwan Emerging Market
Apr 2018 Voluntary Offer shares from
general shareholders
35.20% 50.69% 69.19%
17.68 mil.shares @35 = NTD 618.92 mil.
(THB 685.91 mil.)
7.78 mil.shares @35.20 = NTD 273.87 mil.
(THB 301.27 mil.)
9.70 mil.shares @80 = NTD 775.84 mil.
(THB 844.11 mil.)
Nov 2018 Subscribed newly shares
both of its proportion and the unsubscribed RO
77.21%
40.94 mil.shares @28 = NTD 1,146.45 mil.
(THB 1,261 mil.)
Technical Support
from Strategic Partners
Technology and knowledge transfer to build 50 GWh Energy Storage Factory in Thailand
12
1 GWh 2018-2019
Phase I : EA group Start developing of
1 GWh worth THB 5 bil.
2020 Phase I :
Start commercial operation
The production in Phase I at 1 GWh will be served to power plant to stabilize the system and to
electric vehicle i.e. car and ferry.
Potential 50 GWh
Phase II : Potential partnership
investment to expand the production further to meet
growing demand
Onwards
Energy Storage Applications
13 Source : Silicon Valley Bank- Energy Storage Overview
Stationary Mobile
On/Off grid Storage Electric Transport Electronic Devices
Storage for utilities
Used to shift energy produced
Useful for integrating intermittent energy source
Provide grid stability and range of other benefits
Batteries for plug-in electric vehicles
Batteries for hybrid vehicles
Batteries for other electric vehicles (buses, train etc)
Mobile Phones, Smart phones
Laptops
Power tools
Mobile games
Energy Requirements (kW or MW)
Technology & Market Maturity Low High
Low High
14
Industrial Technology Research Institute (ITRI), EA and Amita, Taiwan agreed to
co-develop new technology of battery with high safety for EA’s new 50 GWh factory.
MOU signing in May 2017 and April 2018
EA’s 50 GWh energy storage factory is planned to set up in EEC zone with strongly supported under BOI best scheme and EEC promotion
as a quick win project in New S-curve
Example Of Solar System + Battery at 50 MWh
15 15
0
20
40
60
80
100
120
140
160
180
200
Solar Direct From Storage
Discharge from ESS
Charge to ESS
This model is suitable for remote area i.e. island, mountain, rural, desert to serve independently. Thus it can help reduce the huge investment cost in electrical transmission line from main power plant.
1 MWh
1 MWh
MWh
• Install Solar System at 5 MW (20% efficiency) • Install battery for the total of 15 MW • To serve 1 MWh for 24 hours
Discharge from ESS
Neoen gets green light for 405-MW Aussie hybrid renewables complex
16
Source : https://renewablesnow.com
August 13 (Renewables Now) - French renewables developer Neoen has won development approval for an up to 405-MW renewable energy hub in South Australia, combining wind, solar and battery storage, and with a potential green hydrogen component. The approval, awarded by the South Australian government earlier this month, allows Neoen to install up to 125 MW of wind, up to 150 MW of solar photovoltaic (PV) and up to 130 MW/400 MWh of lithium-ion energy storage capacity. The project also proposes the addition of a green hydrogen production facility of up to 50 MW, depending on the outcome of a feasibility study conducted in partnership with the state government. To be located near Port Pirie and Crystal Brook, the Crystal Brook Energy Park will use 26 wind turbines, Australia’s tallest ones, reaching a height of 240 metres (787 ft). The wind and solar park, which will feature between 400,000 and 500,000 PV panels, will be linked to the battery system through an underground transmission line using 33-kV cables. The batteries will be located on a separate site. As for the hydrogen facility, the South Australian government has allocated AUD 24 million (USD 16.2m/EUR 14.5m) in grant and loan funding for its construction, pending a successful outcome of the feasibility study. Construction of the hybrid power hub is planned to begin in the second half of next year, according to ReNew Economy.
EV Charging station : EA Anywhere
17
Partnership with landlord to secure strategic location and roll out charging stations with mobile application.
As of Jul , covered 46 provinces with 787 charging heads
info: https://www.eaanywhere.com/#partnerships
MOU with Strong partners
18
The provider of charging station services named "EA Anywhere", a subsidiary of EA, sign MOU with 4 major partners. "Caltex - CPAll - Bridgestone ACT - Robinson" Install charging stations throughout Thailand, Create Thai society into the modern automotive era with convenient charging technology and safe.
Launch the First Thai EV
19
MINE SPA 1 : 5 seat MPV with 30 kWh lithium-ion battery for up to 200 km. drive range/charge (15 mins. with quick charger) Total prior subscription = 4558 Evs, to start delivery in Q1/2020 onwards.
In the event, EA signed an MOU with Suvarnabhumi Pattana Credit Union Cooperative Limited, taxi service operator,
for a prior subscription of 3,500 units
Launch Electric Ferry
20
2019
22
2020
20 42
E-Ferry THB 1 billion
Using our 800-KWh Lithium-ion battery capacity to modernize and make a cleaner and safer transportation for our community including tourist who travel along Chao Phraya River, which is one of the most impressive tourist destinations in Bangkok. The electric ferry is designed by our own team and using our technology.
High Growth from Renewable Power
21
• Revenue from normal business operation in 2018 : THB 11,596 mil. Decreased 0.67% resulted from high competition and over supply in Bio diesel business
• Net Profit from normal business operation in 2018 : THB 4,166 mil. Increased 9.15% resulted from full operation of Wind Power plant in 2018
• High revenue and net profit in Q2/2019 : resulted from high power production of HNM
7,601
9,212
10,439
11,674 12,490
1,608 2,688
3,252 3,817
4,975
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014 2015 2016 2017 2018
THB Mil.
Revenue Net Profit
2,934 2,926 2,963 2,773 3,088
3,640
1,052 985 1,275
769 1,211
1,442
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
THB Mil.
Revenue Net Profit
Gross Profit Margin 1H/2019
22
5,323 5,888
1,409
2,035
2,862
3,664
213
212
63
14
146
28
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2017 2018 Q2/2018 Q2/2019 6m/2018 6m/2019
Power Rev. Biodiesel Rev.
THB mil.
Gross Profit Margin Q2/18 Q2/19 6M/18 6M/19
Biodiesel BU. 7% 2% 8% 2%
Note: • Decreasing from COGS because of lower AVG price of CPO • Decreasing from glycerin price while COGS is stable.
Power BU. • Solar (Increasing price from adj. Ft) • Wind (HNM COD since Jan 2019)
81%
44%
84%
63%
81%
53%
83%
63%
Total GPM 53% 54% 58% 53%
Growth from Power Business
23
Power Business : contribution 75% Total capacity was 664 MW comprised of 278 MW of solar
and 386 MW of wind Solar : Sale volume increased from the intensity of the
sunlight than the prior year. Average selling price per kWh increase 0.49% due to the increase of ft.
Wind : The revenues and sale volume increased from started COD of Hanuman Project which operated fully capacity of 664 MW in 2nd quarter. 5,225 4,902 4,486 3,511
896 888 1,874 1,774
3,956 5,491 7,093 8,041
2,011 2,726
3,961 4,926
16 58
94 44
19 26
19 28
2,926 3,640
5,855 6,729
-
3,000
6,000
9,000
12,000
15,000
2015 2016 2017 2018 Q2/2018 Q2/2019 6M/2018 6M/2019
THB Mil. Biodiesel+Glycerin Power Others
Total
Revenue Contribution
Biodiesel 24%
Power 75% Others
1%
*In 2018, Excluding 894.58 mil.bt. from accounting gain on business combination achieved without the transfer of consideration (AMITA)
*
*
Total Total
Total
Biodiesel Business : contribution 24% B100 : Total sale volume increased 2.57% while average
selling price decreased 18.40% resulted from over supply of crude palm oil that effected to high competition in the market
Glycerin : Revenue from Glycerin decreased 23.71% effected from the decrease of selling price by 34.10% while increase of sale volume compared to the same period in previous year by 15.96%
Effects on Net Profit
24
-24 -285 5
99
-341 -3
Selling Exp. Admin Exp. Share of Lossin investment
FX Gain (Loss) Financial Cost Tax
3M-QOQ
• Total admin expense THB 285.07 mil. (+THB 22.91 mil. ) from personal exp. THB 28.01 mil. and PR, advertising and activities expenses including R&D
expenses from subsidiaries THB 55.06 mil. to promote new businesses following to EA’s strategic plan.
• Finance cost increased by THB 47 mil. (+18.37%) mainly from long term loan from financial institutions for payment of some part of supplier credits for
Hanuman wind power plants project.
1,527 985 1,953 1,442
Gross Profit Net Profit
Q2/2018
Q2/2019
-44 -482
-6 176
-604
-5
Selling Exp. Admin Exp. Share of Lossin investment
FX Gain (Loss) Financial Cost Tax
6M-YOY
3,001 2,037
3,555 2,653
Gross Profit Net Profit
6M/2018
6M/2019
Source of Fund Management
25
13,429
24,547 30,118 29,786
39,690 40,912 42,431 5,897
8,510
11,389 14,744
19,518 20,628 21,039
2.28
2.88 2.64
2.02
2.03 1.98 2.02
1.82
2.25 2.14
1.57
1.16
1.47 1.51
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
-
20,000
40,000
60,000
80,000
2014 2015 2016 2017 2018 Q1/2019 Q2/2019
THB Mil.
Liabilities Equity D/E Ratio Net D/E
Times
A
Debentures Amount (THB Mil.)
Maturity Interest rate
Tranche 1: Partial secured 1,000 Jul 2019 fixed 2.36%
Tranche 2: Fully secured 3,000 Jul 2020 fixed 2.22%
Tranche 3: Fully secured 4,000 Jul 2021 fixed 2.37%
Loan & Debentures
Debt O/S (THB Mil.)
Interest rate
EA & Subsidiaries
• S/T Loan (PN, TR, BE) • Construction & Fixed
assets • Debentures due • L/T Loan • Debenture
4,724 2,703
1,000
24,061 6,997
1.50% - 4.53% -
2.36% 2.77% - 3.74% 2.22% - 2.37%
Total 39,485
Summary of Debentures Issue 1 & 2/2019
26 1 Please see the draft terms and conditions of the Debentures submitted to the SEC for more detail
Issuer Energy Absolute Public Company Limited
Joint Lead Managers KASIKORNBANK PCL and Phatra Securities PCL
Placement Type PP-II & HNW
Debentures Type Unsubordinated & Unsecured Debentures
Credit Rating Corporate rating : A/Stable by TRIS Rating, Issue rating : A-/Stable by TRIS Rating
Coupon Payment Semi-annually
Principal Repayment Bullet payment at maturity
Financial Covenant Net Interest Bearing Debt to Equity1 shall not exceed [3.5x]; the ratio is to be tested annually
Tenor 3Yr 5Yr 7Yr 10Yr
Issue 1/2019 (Jul) THB 1,000 mil
2.61% To be issued THB 3,000 mil
THB 2,000 mil 3.61%
Issue 2/2019 (Aug) THB 500 mil
2.41%
THB 1,500 mil 3.11%
THB 2,000 mil 3.58%
Investment Plan in 2019-2020
27
Investment Plan Progress / Target Source of Fund
Biodiesel Business
(Including Expansion + Green Diesel + PCM)
To be completed in 2019 Internal cash + long term debt
Energy Storage Phase I : 1GWh
(Including infrastructure)
Ordered machinery, under
construction
To be completed in Q1/2020
Internal cash + long term debt
Electric Ferry (54 unit) To be completed the first 20
units in Dec 2019
Internal cash + long term debt
EV Car (MPV 5,000 unit) Release 5,000 cars starting
from Q1/2020
Internal cash
EV Charging 1,000 stations Achieved 200 Stations in
2018
Internal cash
Net cash THB 4,000 mil.
Operating Cash in Flow in 2019 THB 9,000 mil.
New issue of Debentures and/or Long term financing THB 15,000 mil.
Sources of financing
Remaining CAPEX Progress Source of Fund
Hanuman Wind Farm Project
(Associated development/construction costs )
Already COD
since Early 2019
Internal Cash + Supplier Credit
EPC Bridging Loan
THB 6,000 mil.
EPC Payment
obligation due THB 4,000 mil.
Total THB 10,000 mil.
Remaining CAPEX for Hanuman Wind Farm Project
New Investment
Electric Ferry THB 1,000 mil.
Battery Phase I (1GWh)
THB 5,000 mil. EV Car
THB 200 mil.
EV Charging THB 500 mil.
New Biodiesel THB 1,000 mil.
Others THB 1,500 mil.
Total THB 9,200 mil.
Green Use of Proceeds
28
The use of proceeds for this offering will be for:
• To finance or refinance Hanuman Wind Farm Project and associated development/construction costs • To finance or refinance other renewable projects under EA
Under process of CBI certification
Green Bonds
Investment Highlights
29
2,025 mil
3,460 mil 4,463 mil
5,344 mil 6,033 mil
19.2% 18.0% 18.2%
22.0% 24.3%
-2
3
8
13
18
23
28
0
2000
4000
6000
8000
10000
2014 2015 2016 2017 2018 Funds from operation FFO to debt%
64.1% 69.3% 68.3% 62.2%
56.0%
-30
20
70
0 bn
5 bn
10 bn
15 bn
20 bn
25 bn
30 bn
2014 2015 2016 2017 2018 Adj. debt Adj. equity Debt to Capitalization (%)
Strong cash flow from power projects Satisfactory performance of power projects
Proven experienced in investing in new frontier technologies Sound financial profile
Total Output (mil. kWh)
Based on TRIS Rating’s definition and calculation: 1. Funds from operations (FFO): EBITDA minus adjusted interest expense, minus tax expenses (as shown in the income statement). The definition incorporates the same adjustments as TRIS Rating makes to EBITDA; the adjustments can be cash items or non-cash items. 2. Adjusted debt: The financial debts as reported on the balance sheet and some debt-like financing or financial obligations that may or may not appear on the balance sheet. Total debt is then netted with excess cash to arrive at the adjusted debt value. 3. Adjusted equity: The value of equity reported on the balance sheet is adjusted to reflect the equity content of hybrid securities, preferred shares, or convertible debentures. Source: TRIS Rating Methodology’s Key Financial Ratios and Adjustments, dated 5 September 2018
163 168 147 141 153 162 136 151 154 171
3 20 82 76 67 48
116
60
98
165
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
Solar Wind
30
Our Integrated Business Building Eco System
“A leader in alternative energy business,
by using the modern technology and environmentally friendly”
Biodiesel & Glycerin Green Diesel & PCM
2009
Solar Power 278 MW 2011
Wind Power 386 MW
2015
Energy Storage Lithium-ion Battery
2016
Electric Vehicle “MINE Mobility”
2018
Electric Ferry 2019
Charging Station 2017
31
Energy Trading is a must
Power System
Energy Trading Platform
Online Platform
When the PHYSICAL Power System gets DIGITALIZED
to the ONLINE Trading Platform
Overall Benefits
National Benefits
Effective power policy (by real time power flow, power cost)
Wheeling charges, New services
Effective cost, better asset utilization
& investment
Competitive price, Market efficiency
Competitive near real-time power costing & pricing
Reliability & efficiency
Aligning the national benefits with all the system participants
Effective Power Market
The Multidimensional Energy Trading System for a leap-frog Power System & Market Improvement
Retail Consumers / Prosumers
Self generation
Cost saving / Time-varying charges
Private Sector
Energy Absolute E n e r g y f o r t h e F u t u r e