Gunkul Engineering Public Company Limitedgunkul.listedcompany.com/misc/PRESN/20190530... ·...

Gunkul Engineering Public Company Limited

30th May 2019

Section I: Company Overview

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 current,we have ~348 equity MW in operation (64% operated)

Approx. US$ 718.96 Million market capitalization end of December

2018 (SET:GUNKUL)

Notes:

(1) Including operational, under construction, and secured pipeline.

(2) As of May 2019

(3) Gunkul Group is a holding company with the Dhumrongpiyawut family owning 99.6% of the Group

(4) Dhumrongpiyawut family accounts for 53.3% 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

3


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

2022

1st Japan Solar Project

31.8MW solar power

plant in Japan (Sendai)

2017 2018

4

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


5

Vertically Integrated Business Covering Downstream Segments of Renewable Energy

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

Substation Battery 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


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)



Solar Rooftop ( 2.8 MW)

Fully COD (9 Projects)


Private PPA Solar Rooftop ( 32.6 MW)

Fully COD ( 1 Project)


Under Construction ( 3 Projects)


Gas-Fired Plant ( 12.8 MW)



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


Fully COD( 2 Projects)

Total Gross /Equity (MW) 65.3 / 65.3




Under Development ( 1 Projects)


Note:(1) The figure is as of 1 Nov, 2018


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 2022, 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


8

Track Record of Accelerated Growth

15.8 10.4 1.0

12.8 2.8

58.3 10.0

50.0

2.6

1.0

50.0

33.5

348.0

1.1

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

KimitsuCOD

Q1 2019

OperationalCapacity

PrivatePPACOD

Q2 2019

PrivatePPACOD

Q2 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

(Q1 2019 – 2022)

In Operation

(2011 – Q1 2019)


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

9


10

Sendai – Japan Solar Project


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

KIMITSU

COD : 1 April 2019

11



12



13

Section II: Q1-2019 Performance


3,360

8,590 9,749 10,184 9,500 9,643

447

484

463 592

671 762

20

3,369

8,562

13,519 16,949 16,638

1,151

2,442

2,000

3,200

1,871 1,639

2,261

3,930

4,822

3,232

6,633 6,359

4,654

12,641

19,523

24,745

30,086 29,692

1,078

2,678

3,605

4,824

4,646 4,515

1,507

3,497

2,468

1,158

893 833

7,239 7,239

18,815 18,815

25,596 25,596

30,377 30,726

35,625 35,625

35,041 35,041

0.00x

0.50x

1.00x

1.50x

2.00x

2.50x

3.00x

0

10,000

20,000

30,000

40,000

2014 2015 2016 2017 2018 Q12019

2.48x0.68x 0.85x 1.37x 1.70x

0.651.2 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

15

2.38x

0.67

1.02*Break off Current

portion of debentures


Breakdown by Business Unit

709 961

987 1,376

2,082

121

512 541 674 615 715

1,178

(70)232

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016 2017 2018 Q12018

Q12019

Manufacturing and Trading Revenue

EPC and O&M Revenue

Power Generation Revenue

EBIT

Net Profit

47%6

31%

42%

31%

50%

1%

49%85%

14%

1%

31%

27%

24%

44%

32%

22%

31%

47%

16%

61%

23%

23%

18%

59%

THB MM

24%

18%

22%

15%

39%

19%

38%

22%

EBIT

Margin

Net Profit

Margin

36%

15%

35%

16%

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

16

1,4611,736

6,461

4,913

3,367

4,591

3,062

7%

(4%)


31%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2017 2018 2019F 2020F

Manufacturing and Trading Revenue

EPC and O&M Revenue

Power Generation Revenue

EBIT

45%

4,913

8,000

(+25%)

3,200

(+54%)

6,460

(+31%)

2,082

(51%)

1,376

9,250

(+16%)

3,850

(+20%)

Forecasted Revenue Breakdown & Earnings

17

22%

31%

47%

18%

33%

48%

25%

42%

33%

43%

19%

38%44%

16%

40%


ราคาปิด

2.90 บาท

ผลตอบแทน

12.40%

อตัราผลตอบแทนจากหุ้นปันผล (5:1) + เงินสด 0.01 บาทต่อหุ้น

18

24 เม.ย. 62 25 เม.ย. 62 15 พ.ค. 62 29 พ.ค. 62

ราคาปิด

3.10 บาท รับหุ้นปันผล 5:1 รับเงนิสดปันผล 0.01 บาท / หุ้น

หุ้นปันผลเข้า TRADEก่อน XD 1 วัน ราคาปิดวานนี ้

Dilution Effect ท าให้ต้นทนุเฉล่ียลดลงเป็น 2.58 บาท

(~17%)

ราคาปิด 2.62 ผลตอบแทน 1.55%

ราคาเฉล่ีย 2.68 ผลตอบแทน 3.88%

ราคาสูงสุด 2.76 ผลตอบแทน 6.20%

ขึน้ XD

21 วัน 35 วัน1 วัน0 วัน

Section III: Opportunities to growth


2019 GUNKUL’s target growth

In 2019, GUNKUL’s revenue and EBITDA will continue to grow 25% and 54%, respectively

20

Three major factors to support the growth

PDP 2018 support to Solar Rooftop

The Ministry of Energy has put Private

PPA of Solar Rooftop in a National

Power Development Plan for the

country's new Power Development

Plan (PDP2018) of over 10,000 MW,

starting by the first five years (2019 -

2023) which expected to reach an

average of 100 MW per year, before

moving upwards by 1,000-2,000 MW

after 2027 to reach 10,000 MW in

year 2036

In 2019, our operated capacity MW

will reach 401MW, including Thailand,

Japan, Malaysia. We are still looking

for new opportunities in every

countries and target to secure

1,000MW by increasing capacity

through domestic and international

Fully COD of Power Plant of

almost 400 MW in 2019

To secure EPC of transmission

line, substations and submarine

cable

The acquisition of FEC on 3 July 2018

was a very good advantage for

GUNKUL to enhance Company’s

growth from entering into the new

business segment and capture more

market shares in Transmission line &

Substation Construction Sector which

leads to higher earnings

Government Utilities’ Outstanding

Project (2019-2023) in

Transmission Line & Substation

169,305 THB Million

Transmission

lineUnderground

CableSubstation Electricity Plant

TARGET

70-100 MW in 2019

TARGET

To achieve 3,500 MB in 2019

TARGET

To achieve 3,000 MB in 2019

Government

Utilities

16


EPC : Opportunities to growth

Potential Projects Value announced

by EGAT, PEA and MEA

Selective & Captured only PEA Projects

Average PEA Projects value per year

during 2018 - 2023

592,177 MB

169,934 MB

33,987 MB / Year

21


EPC : Opportunities to growth

Backlog (approx. 7,000 MB)

22

• Substation 115 KV (total 880 MB)

• High Voltage Power Distribution System - Underground

• Transmission line 115 KV Loop Line

400 MB

1,150 MB

115 MB

• Solar Rooftop Projects 300 MB

• Krungthep Thanakom – Fiber Optic 5,100 MB


GUNKUL’s Wind Project : 2018 Performance

83,185,430 kWh

6-month

6.17 m/s

35.64%

95.99%

Production 123,519,080 kWh

9-month

5.24 m/s

27.28%

96.19%

123,720,298 kWh

12-month

5.38 m/s

23.50%

96.13%

Period

Avg. Wind Speed

Capacity Factor

Plant Availability

50 MWContracted MW 60 MW60 MW

20 June 2018COD Date 27 March 201810 MW : 17 Mar 2016

50 MW : 29 Dec 2016

23


WED – Wind Project

24


GNP – Wind Project

25


KWE – Wind Project


33 kV Submarine Cable

33 kv Submarine Cable :

Ko Prathong

Project Ownner : PEA

Location : Ko Prathong, Pang Nga

Total Project Cost : 87.5 Million Baht

--- Project Completed ---




Ko Sa-mui


Location : Ko Sa-mui

Total Project Cost : 1,800 Million Baht

Bidding Period : Q2 - 2019




Ko Tao


Location : Ko Tao

Total Project Cost : 1,500 Million Baht

Bidding Period : Q4 - 2019


Floating Solar Power Plant

Floating Solar Power Plant

Project Ownner : EGAT

Location : Sirindhorn Dam,

Ubonratchathani

Capacity : 250 kW

Total Project Cost : 21 Million Baht

--- Project Completed ---


High Quality Renewables Asset Portfolio

31

THAILAND

MYANMAR

MALAYSIA




Wind Farm ( 170.0 MW)



Solar Rooftop ( 2.8 MW)

Fully COD (9 Projects)


Private PPA Solar Rooftop ( 32.6 MW)

Fully COD ( 1 Project)




Gas-Fired Plant ( 12.8 MW)



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


Fully COD( 2 Projects)





Under Development ( 1 Projects)


Note:(1) The figure is as of 1 Nov, 2018


Disclaimer

32

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.

Gunkul Engineering Public Company Limited

1177 Pearl Bangkok Building, 8th Floor, Phahonyothin Road, Phayathai , Phayathai, Bangkok 10400

33

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