presentation thailand focusegco.listedcompany.com/.../20120829-egco-roadshow… · ·...

Corporate Presentation

29 August 2012

1

This presentation was made from the analysis of reliable information in order to assist

investment community to better understand the company's financial status and operation. It

also supports the "Good Corporate Governance Project" of the Securities and Exchange

Commission (SEC).

However, the information within this presentation has been derived from the existing factors in

the present time. Therefore, the forward-looking information on this presentation may not occur

in the future if the aforementioned factors or situations are changed. Investors are, however,

required to use their own discretion regarding the use of information contained in this

presentation for any purpose. For further information, please contact Investor Relations Section

of the Electricity Generating Public Company Limited (EGCO) at Tel: (662) 998-5145-8 or Email:

[email protected]

Disclaimer

2

AgendaThailand Electricity’s Overview EGCO Group’s Overview Financial Performances

• Thailand Electricity’s Overview

• EGCO Group’s Overview

• Financial Performances

3

IPP

2

End Users

EGAT Transmission

EGAT

MEA Direct Customers

PEA

IMPORT SPP

Re

gu

lato

rs

Source: EPPO and EGAT

Current Electricity Supply Industry

EGAT: Electricity Generating Authority of Thailand IMPOPRT: Purchasing from Laos & Malaysia

IPP: Independent Power Producer MEA: Metropolitan Electricity Authority

SPP: Small Power Producer PEA: Provincial Electricity Authority

Thailand Electricity’s Overview EGCO Group’s Overview Financial Performances

4

� As of 30 June 2012, Thailand’s Power Installed Capacity was 31,451 MW.

Thailand’s Power Generation

5


48%

38%

7%

7%

EGAT 15,010 MW

IPP 12,082 MW

SPP 2,174 MW

IMPORT 2,185 MW

31,451 MW

18,000

23,000

28,000

January Februaary March April May June July August September October November December

2008 2009 2010 2011 2012

Peak Demand Comparison

6

26,121.10 MW

(26 April 2012)

23,900.21 MW

(24 May 2011)

+ 9.3%


7

Thailand’s Power Generation (PDP 2010 Revision 3)

48%

38%

7%7%

41%

19%

27%

12%

42%

21%

24%

12%

PDP 2010 R. 330 June 2012

(31,451 MW) (55,130 MW) (70,686 MW)

* Including total retired plants of 15,894 MW

2030*


New IPPs for the 3rd Round of IPP Bidding

� Six IPPs are expected to come into the system in 2021-2026.

� Total bidding capacity is set to be 5,400 MW (900 MW for each plant).

� Fuel type will solely be natural gas.

Project MW SCOD

IPP# 1 Gas-fired 900 2021






5,400


Agenda

9





EGAT

25.41%

TEPDIA

23.94%

Thai Investors

19.35%

Foreign Investors

20.87%

NVDR 10.43%

10

EGCO’s Shareholders

TEPCO

50%

Mitsu-

bishi

50%

As of March 16, 2012

* Nuclear Damage Liability Facilitation Fund

NDF*

50.11%

Others

49.89%

NVDR 10.43%

EGCO’s Board of Directors

11


BOD

EGAT

4 seats

TEPDIA

4 seats

Independent

Directors

6 seats

President

1 seat

EGCO Group’s Business Lines

� EGCO Group’s business lines can be categorized into 3 business groups:

Power Business

To develop and acquire power plants with multiple fuel types.

Service Business

Other Business

To provide operation, maintenance, engineering and

construction services to power plants and other industries.

To invest in water businesses that supply raw and tap water.

12


13

2Q12 Highlights

On 19 June 2012, the

Cabinet approved EGCO

to build a new 900 MW

combined cycle power

plant at the existing

KEGCO site location.

SCOD will be in July

2016.

On 11 June 2012,

EGCO completed the

acquisition of

additional 45.875%

indirect ownership

interest in Quezon,

bringing EGCO’s

ownership interest in

Quezon to 98%.

Accomplishment

Quezon New Khanom

14

Post 2Q12 Highlight

� 16 August Acquired 40% stake in Manambang Muara Enim

Coal Mine (MME)

Type: Open-pit coal mine

Reserve: 140 Million Tons

Coal Type: Sub-bituminous (5,800 kCal/kg)

Location: Muara Enim Regency , South Sumatra

Republic of Indonesia

COD: March 2010

Concession Time: 28 years starting from March 2010MME

15

EGCO Group’s Power Plants Portfolio

Operating Plants Under Development Plants

4,708 MW 1,483 MW

Power

Plant

Equity

MW

Power

Plant

Equity

MW

Power

Plant

Equity

MW

Rayong 1,232 Quezon 493 NED (Expansion) 3

KEGCO 749 Conal-WMPC 19 GPS (4) 4

BLCP 717 Conal-SPPC 10 TWF 12

EGCO Cogen 94 NTPC (NT2) 380 YEH 28

GPG (KK2) 755 NED 18 Khanom 900

GCC 55 SPP2 8 TJ Cogen 125

NKCC 63 SPP3 8 TP Cogen 125

SCC 63 SPP4 6 SK Cogen 125

GYG 12 SPP5 8 XPCL 161

Roi-Et Green 7 GPS (1-3) 12

� As of 30 June 2012, EGCO Group’s portfolio comprised 20 operating power plants and

9 in development, bringing EGCO’s total portfolio to 6,191 MW.

47

1,483

900

125 125

125

161

-

500

1,000

1,500

2,000

2,500

MW

16

EGCO Group’s Capacity Growth 2012-2020

TP Cogen

125 MW

Khanom

900 MW

TJ Cogen

125 MW

SK Cogen

125 MW XPCL

161 MWNED Ex. 3 MW

GPS 4 MW

TWF 12 MW

YEH 28 MW

17

EGCO Group’s Opportunities Outlook

Domestic

Prospects

International

Prospects

New Business

Lines

Strategic

Project

Acquisition

IPP

Bidding

Cross Border Projects

for Imported Power

Renewable

Energy

Development

& Acquisition

Projects in key ASEAN

countries & regional

market

Quezon

Expansion

Integrated energy business

(Local & International)

SPP

Develop

-ment

IPP and Captive

Power Projects

Agenda

18





1,703 1,893

61 93

4,310

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2Q11 2Q12

1,681 1,874

68 89

4,310

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2Q11 2Q12

2Q11 VS 2Q12

1,749 1,963

+214 or

12.24 %

6,273

Baht Million

Net Profit Net Profit before FX

1,764 1,986

+222 or

12.59%

6,296

Baht Million


19

72,956

104,103

58,533 66,951

14,423

37,152

Total Assets/ Total Liabilities/ Equity

2Q122011

104,103+ 31,447

or 43%

72,956

Total Assets Total Liabilities Equity


20

EGCO & Subsidiaries’ Outstanding Loan

USD 673 M

Baht 11,596 M

JPY 419 M

Total Outstanding

(Baht Equivalent) Baht 33,269 M

Total Outstanding

As of 31 Mar 2012

USD 109 M

Baht 9,897 M

JPY 419 M

Baht 13,424 M

Total Outstanding

As of 30 Jun 2012

21


0.22 0.21 0.210.25 0.26 0.25 0.25 0.25

0.27

0.56

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

1Q10 2Q10 3Q10 2010 1Q11 2Q11 3Q11 2011 1Q12 2Q12

Debt/Equity

Times (X)

22

Unit: Baht Million

37,152 66,951

EquityTotal

Liabilities

As of 30 June 2012

0.37

Excluding Quezon’s debt


Historical Dividend Payment

23

EGCO has a policy to pay dividend at approximately 40% of the consolidated

net profit after tax, or to increase the dividend amount in a steady manner.


1.00 1.25 1.25 1.50 1.502.00 2.25 2.50 2.50 2.50 2.50 2.75

1.251.25 1.50

1.50 1.75

2.00

2.502.50 2.75 2.75 2.75

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Interim Final

2.25 2.502.75

3.003.25

4.00

4.755.00

5.25 5.25 5.25

2.75

Baht/ Share

24

THANK YOU

25

Appendix

New additional capacity (PDP 2010 Revision 3)

Source: EPPO, EGAT, June 2012 26


Project MW Project MW Project MW Project MW Project MW Project MW

2012 Others 30 Gheco-One 660 SPP 254 VSPP 8 Renewable 699 Theun-Hin Boun Exp (Jun) 220

2013 Others 19 SPP 1,170 VSPP 16 Renewable 1,021

2014 Wang Noi CC # 4 769 GULF JP NS#1-2 1,600 SPP 270 VSPP 16 Renewable 661

Chana # 2 782

Solar 5

2015 North Bkk # 2 900 GULF JP UT#1-2 1,600 SPP 540 VSPP 17 Renewable 682 Hong Sa #1-2 (Jun,Now) 982

Others 70

2016 Others 5 National Power#1-2 270 SPP 450 VSPP 21 Renewable 984 Hong Sa #3 (Mar) 491

KEGCO (New) (Jul) 900

2017 Lam Takhong Pumped 500 National Power#3-4 270 SPP 900 Renewable 510

Others 25

2018 New Plant_ Replaced SPP 720 VSPP 1 Renewable 366 NamNgiep 1 (Jan) 269

Others 24 Xe-pian (Aug) 390

2019 Coal-Fired Plant TH # 1 800 SPP 720 VSPP 5 Renewable 442 Xaiyaburi (Oct) 1,220

Others 54

2020 Others 6 SPP 90 Renewable 436

2021 Bang Pakong CC # 1 900 IPP#1 Gas-fired(New) 900 SPP 180 VSPP 1 Renewable 439 Neighboring 300

Others 3

2022 Bang Pakong CC # 2 900 IPP#2 Gas-fired(New) 900 SPP 180 VSPP 5 Renewable 287 Neighboring 300

Coal Plant # 2 TH 800

Others 1

2023 South BKK CC #1-2 1,800 IPP#3 Gas-fired(New) 900 SPP 180 Renewable 267 Neighboring 300

Others 14

RenewablePurchase From

Cogeneration Cogeneration Neighboring CountriesYearEGAT IPP / Private Players

SPP VSPP

27Source: EPPO, EGAT, June 2012


Total New Additional Capacity as of 2030 = 55,130 MW

New additional capacity (PDP 2010 Revision 3)

Project MW Project MW Project MW Project MW Project MW Project MW

2024 South BKK CC # 3 900 IPP#4 Gas-fired(New) 900 SPP 180 VSPP 1 Renewable 272 Neighboring 300

Bang Pakong CC # 3 900

Ohters 2

2025 Coal Plant TH # 3 800 IPP#5 Gas-fired(New) 900 SPP 180 VSPP 5 Renewable 254 Neighboring 300


Others 4

2026 Bang Pakong CC #5 900 IPP#6 Gas-fired(New) 900 SPP 180 Renewable 252 Neighboring 300

Nuclear Plant # 1 1,000

Others 2

2027 Wang Noi CC # 1 900 SPP 180 VSPP 1 Renewable 252 Neighboring 300


Nuclear Plant # 2 1,000

Others 62

2028 Wang Noi CC # 2-3 1,800 VSPP 5 Renewable 252 Neighboring 300

Coal Plant TH # 4 800

Gas Turbine # 1 250

Others 18

2029 South BKK CC # 4 900 Renewable 252 Neighboring 300

New Plant CC # 1 900

Gas Turbine # 2 250

Others 14

2030 New Plant CC # 2 900 VSPP 1 Renewable 252 Neighboring 300

Gas Turbine # 23 250

Others 41

Total 22,801 10,700 6,374 103 8,580 6,572

RenewablePurchase From

Cogeneration Cogeneration Neighboring CountriesYearEGAT IPP / Private Players

SPP VSPP

16.1%

18.3%17.6%

16.6%

24.1%

21.3%

19.5%

18.7% 18.1% 17.9%16.9%

16.4%16.3% 16.4% 16.5%16.2% 16.4%

16.4%16.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

28

Reserve Margins: (PDP 2010 Revision 3)

� Average Reserve Margins during 2012-2030 are expected to be 16-17%.


1,267

Reserve Margins MW

EGAT Private Sector New IPP SPP-Cogen Renewable Neighboring Countries

Khanom

68%

17%

12%

3%

Thailand’s Power Generation classified by fuel type

29


� Natural Gas is the primary source of fuel for Thailand’s Power Generation.

* OTHERS = Fuel Oil, Diesel, Renewable

NATURAL GAS 21,308 MW

HYDRO 5,321 MW

COAL 3,896 MW

OTHERS* 926 MW

*

31,451 MW

EGCO Group’s Power Plants Portfolio (1994-2020)

30

(75)

(1,232) (778)

(42) (10) (7)

-1,500

-1,000

-500

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Rayong KEGCO #1, 2,3 GCC SCC CONAL-WMPC CONAL-SPPC AEP

NMPC #1, 2 NKCC APB EGCO Cogen Roi-Et Green BLCP #1, 2 GYG

GPG (KK2) #1, 2 QPL #1, 2, 3, 4 NTPC (NT2) #1-6 NED #1,2 SPP4 SPP3 SPP2

SPP5 GPS # 1-4 TWF YEH New KEGCO TJ Cogen TP Cogen

SK Cogen XPCL KEGCO #1 Retire Rayong Retire KEGCO #2, 3 Retire AEP Divestment APB Divestment


Rayong

KEGCO

BLCP

QuezonKhanom

NMPC#1 Retired

NMPC#2 RetiredAEP (25), AEB (17)

Divestment

KEGCO Barge # 1

Retired

Rayong

Retired

KEGCO (749), CONAL:

WMPC (19), SPPC (10)

Retired

1994: 1,232 MW2020: 4,126 MW

KK2

NTPC

(55)

GCC Retired

Natural Gas

69%

Renewable

2%

Coal

20%

Hydro

8%

Diesel

1%

31

EGCO Group’s Power Plants classified by Fuel Type

Rayong, KEGCO,

GEC-GPG (KK2)

EGCO Cogen,

GEC-GCC, GEC-NKCC

GEC-SCC, Khanom,

TJ Cogen, TP Cogen,

SK Cogen

GEC-GYG,

Roi-Et Green

NED, SPP2

SPP3, SPP4,

GPS (#1-4),

SPP5, TWF, YEH

BLCP, Quezon

NTPC (NT2), XPCL

Conal-WMPC,

Conal-SPPCTotal 6,191 MW

6,927

7,936

6,803

4,990

1,6901,963

7,491 7,505

6,264

5,301

1,487

1,986

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2008 2009 2010 2011 1Q12 2Q12

Net Profit Net Profit before FX

Unit : Million Baht

32

Net Profit before FX & Net Profit

Historical Net Profit before FX & Net ProfitThailand Electricity’s Overview EGCO Group’s Overview Financial Performances

Baht Million

EGCO’s Financial Performances

33

53,600

11,604

58,330

12,788

62,920

11,826

67,040

11,712

72,956

14,423

76,255

15,936

41,996 45,542

51,094 55,328

58,533 60,319

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Total Assets/ Total Liabilities & Equity

Unit : Million Baht

2007 2008 2009 2010 2011 1Q12

Total Assets Total Liabilities Equity

Company Cash Flow Summary

34

6M12

Beginning Balance of Cash and Cash Equivalents 5,674

Net Cash Received from (Payments in) Operating Activities

Profit before corporate income tax 1,766

Depreciation 523

Dividend received from subsidiaries and JVs (1,827)

Others (197) 266

Net Cash Received from (Payments in) Investing Activities

Investment in subsidiaries & JVs (11,179)

Net cash received from short-term investments 1,575

Dividend received from subsidiaries and JVs 1,870

Cash payment in long-term loans to a related party (465)

Others (387) (8,586)

Net Cash Received from (Payments in) Financing Activities

Proceed from long-term loans from financial institution 6,326

Dividend paid to shareholders (1,447)

Others (206) 4,673

Ending Balance of Cash and Cash Equivalent 2,027

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