BGRIM: Investor Presentation for Q2’2018August 2018
Q2’2018BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
BGRIM Q2’2018 Key Highlights
1
“BGRIM increases total capacity by delivering projects in pipeline and beyond”
Upcoming COD in 2018 Exploring new projects in
Suitable Opportunities
ABPR3 & ABPR4 completed COD in
Feb 2018 and June 2018, respectively
ABPR5 to be COD in Oct 2018
Nam Che hydro project and Solar
Farms project to be COD in Dec 2018
SPA signing for 420 MW capacity of Xuan
Cau solar power plant on July 16, 2018
and 257 MW capacity of Phu Yen
solar power plant on August 16, 2018
Totaling 677 MW capacity investment for
solar power plant in Vietnam with tariff of
9.35 US dollar cents and target COD on
30 June 2019
“BGRIM constantly strives to improve performance both operationally and financially”
BIP1 & BIP2 bond were issued in May 2018
Planning to issue debenture for refinancing
and new investment amounting of
THB 10,000 -14,000 mm of debenture
by Q4/2018
Increased investment percentage in
BGYSP from 49% to 100% Planned to consolidate BGYSP's FS in
Q3‘2018 which consolidate the second half‘s FS
BGYSP showed revenue of THB 509 mm
and net profit of THB 115 mm in 2017
Upside from aquisition is toward refinancing
with bond at lower financial cost
Acquisition of 51% Shares
of BGYSP ProjectsReducing Financing Cost
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
BGRIM Overview
Q2’2018 Update
Q2’2018 Operating Result
Agenda
2
Q2’2018BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW3
Upcoming COD in 2018 - SPP 399 MW COD on schedule
“ABPR3 (133 MW) – COD on 1 Feb 2018”
ABPR5
Type of Fuel: Combined Cycle Cogeneration
Installed Capacity: Electricity 133 MW / Steam 30 t/h
Economic Ownership: 55.5%
SCOD: 1 Oct 2018
EGAT PPA: 90 MW / 25 years
Progress: Scheduled commissioning plan
with relevant parties, i.e.
EPC, EGAT, PEA in Aug 2018 and
target ready to take over in Sep 2018
% Progress
“ABPR4 (133 MW)
achieved COD
on 1 Jun 2018
as scheduled in
T time & in budget”
99.0%
Commercial Operation
of “ABPR4”
Q2’2018BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW4
Upcoming COD - Projects under construction are on track
% Progress
Nam Che 1 Hydro Power Project
Type of Fuel: Hydro
(Run of the river)
Installed Capacity: 15 MW
Economic
Ownership: 72.0%
EDL PPA: 15 MW / 25 years
Progress: Finishing main
area facilities, i.e.
powerhouse,
generating unit,
penstock and
switchyard
% Progress89.3%
Dec 2018
% Progress
Dec 2018 30 June 2019
SCOD
30 June 2019
Solar WVO-Cooperatives Projects
Type of Fuel: Solar PV
Installed Capacity: 31 MW
(combined 7 plants)
Economic
Ownership: 100.0%
PEA / MEA PPA: 31 MW / 25 years
Progress: Finished site leveling
and clearing and on
process of piling
and equipment
transportation
52.4%
Xuan Cau Solar Project
Type of Fuel: Solar PV
Installed Capacity: 420 MW
Economic
Ownership: 55.0%
EVN PPA: 350 MW / 20 years
Progress: Finished site leveling
and clearing and on
process of piling
Phu Yen Solar Project
Type of Fuel: Solar PV
Installed Capacity: 257 MW
Economic
Ownership: 80.0%
EVN PPA: Up to 214 MW / 20 years
Progress: Processing of site
clearing
0.0%% Progress
7.2%
Q2’2018BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW5
13%
87%
TOTAL DEBTTHB 53.5 bn
Project level
Corporate
level
In May 2018, BIP1 and BIP2 issued 15-year
amortizing debentures in amount of THB
6,700 mm with rating A- and coupon rate of
3.95% per annual.
4.9%
4.7%4.6%
0.04
0.04
0.05
0.05
0.05
0.05
0.05
0.05
0.05
2016 2017 Q2/18
Financing cost has gradually
improved to 4.6%
Q2/2018 Capital Structure
Lower Funding Cost through Various Sources of Financing
‘A’ CREDIT
RATING BOND
Planning to issue
debenture for refinancing
and new investment
Potential to gearing with low funding cost facility by issuance
debenture amount of THB 10,000 - 14,000 mm.
THB 10,000 - 14,000 mm
ProceedsObjective
THB 5,000-7,000 mm Refinancing existing loan & debentures
THB 4,000-5,000 mm Refinancing project finance (BLPC1&2, BGPSK & BGYSP)
THB 1,000-2,000 mm New Investment
Issuer B.Grimm Power Public Company Limited
Instrument THB Senior Unsecure and Unguaranteed Debenture
Rating
(By TRIS Rating)A (Company Rating)
Indicative Tenors Up to 3 yrs. / 5 yrs. / 7 yrs. / 10 yrs.
Tentative Issue Date Early October 2018
Q2’2018BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Progress
PartnerTruong Thanh Viet Nam
Group Joint Stock Company
Project type Solar PV
CapacityInstalled : up to 257 MW dc
Contract : up to 214 MW ac
Tariff structure 9.35 Cent USD per kWh
PPA period 20 Years
BGRIM shareholding 80.0%
SCOD 30 June 2019
Project Profile
The project obtained MOIT (Ministry of Industry and Trade) approval and in process of obtaining PPA
Local partner secured majority of land certificate
Energy China was engaged as EPC Contractor
Investment Vietnam solar
project
Land Profile
LOCATION:
Phu Yen
(South Central Coast Vietnam)
LAND AREA:
Approx. 256 ha.
(1,597 rais)
Investing in the Large Scale Solar Project in Vietnam
6
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
BGRIM Overview
Q2’2018 Update
Q2’2018 Operating Result
Agenda
7
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
34%
30%
11%
11%
8%
6%
84%
14%
0.5% 2%
Total 975 MWIn Operation
134 MW
Solar Group
822 MW
(708 MW under development)
Hydro Group
133 MW
(113 MW under development)
Wind Group
16 MW
(under development)
Bien Hoa
13 MW
Diesel
Gas Fired
Total 2,137 MWIn Operation 1,764 MW
Amata City (Chonburi)
732 MW
Amata City (Rayong)
647 MW
(133 MW under construction)
Bangkadi
229 MW
Laem Chabang
159 MW
Hemaraj
130 MW
BGPR1&2
240 MW
(Under development)
8
Type of Energy
Installed MW Equity MW
Total Capacity
% In operation
Total Capacity
% In operation
Gas fired
2,137 MW 68.4% 1,764 MW 1,439 MW 68.1% 1,004 MW
Hydro 133 MW 4.2% 20 MW 95 MW 4.5% 14 MW
Solar 822 MW 26.3% 114 MW 557 MW 26.4% 90 MW
Wind 16 MW 0.5% 15 MW 0.7%
IWTE 5 MW 0.2% 2 MW 0.1%
Diesel 13 MW 0.4% 13 MW 4 MW 0.2% 4 MW
Total 3,126 MW 100% 1,912 MW 2,112 MW 100% 1,112 MW
Well-Diversified Portfolio with Expert in Green-Field Developer
SPP – INDUSTRIAL ESTATE 68.4%
TRANSMISSION & DISTRIBUTION 0.4%
Waste to Energy (IWTE)
5 MW (under development)
RENEWABLE GROUP 31.2%
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
6M’2018 SALES AND SERVICE INCOME BY CUSTOMER WEIGHTED AVERAGE REMAINING PPA LIFE
EGAT
63%
IU-TH
29%
IU-VN
3%
Steam-TH
2%Others
3%
THB 16,961 mm6M’2018 Sales and
Service IncomeLONG-TERM PPA STRUCTURE
• EGAT : 21 to 25 years tenor with take-or-pay structure
• PEA : 25 years tenor (VSPP of solar, wind, waste to energy)
• Industrial Users : up to 15 year tenor with track record of extensions
Secured Gas Supply with PTT covering respective PPA tenors
Gas price pass-through at contracted heat rate under EGAT PPA
24.823.1
19.5
9.47.2
EDL PEA / MEA EGAT Industrial users- electricity(Thailand)
Industrial users- steam
(Thailand)
Track Record of
Extensions
Years Years
Years
YearsYears
9
Note: Weighted Average Remaining PPA life is calculated as the average remaining contractual term remaining from 30 June 2018
to expiry weighted by the aggregate contracted capacity under the relevant agreement
Long-Life PPA and Benefit from Well-Establishment of PPA
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
Delivery of Reliability in Form of Electricity and Steam
FOOTHOLD IN TOP INDUSTRIAL ESTATES WITH
MULTIPLE OF GENERATING UNITS IN EACH LOCATIONSELECTED TOP IU FOR ELECTRICITY AND STEAM
THAILAND
CAMBODIA
LAOS
VIETNAM
1 power plant
130 MW
3 generating units
2 power plants
229 MW
6 generating units
2 power plants
240 MW
6 generating units
1 power plant
13 MW
5 power plants
647 MW
15 generating units
5 power plants
732 MW
17 generating units
2 power plants
159 MW
5 generating units
Hemaraj
Bangkadi
BGPR1&2
Amata City
(Rayong)
Amata City Bien Hoa
Laem Chabang
Amata City(Chonburi)
XXHP
Gas-fired cogeneration power plants Transmission and Distribution
10
1 power plant
20 MW
3 generating units
Hydro power plants
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
Robust Growth Pipeline with Promising on Execution
ACHIEVED COD IN TIME AND WITHIN BUDGET FOR 27 CONSECUTIVE PROJECTS DURING PAST 7 YEARS
ABPR3, ABPR4
(2 plants - 266 MW)
Current
(as of Q2’2018)
32Plants
1,912 MWInstalled Capacity
1,112 MWEquity Capacity
45
2019
Plants
1,727 MWEquity Capacity
3,126 MWInstalled Capacity
2,052 MWEquity Capacity
2020
49Plants
2,817 MWInstalled Capacity
1,762 MWEquity Capacity
ABPR5(133 MW)
Solar 2017(7 plants - 31 MW)
Nam Che 1(15 MW)
41
2018
Plants
2,091 MWInstalled Capacity
1,228 MWEquity Capacity
2022
55Plants
3,126 MWInstalled Capacity
2,112 MWEquity Capacity
11
202155
Plants
2021
Gas
Solar
IWTE
Hydro
Xuan Cau
(2 plants - 420 MW)
Interchem(5 MW)
BGPR1, BGPR2 (240 MW)
Nam Khao Phase 1(2 plants - 28 MW)
ABP1 Extension(a)
(166 MW)
ABP2 Extension(a)
(171 MW)
2,773 MWInstalled Capacity
Wind
Nam Khao Phase 2(3 plants - 40 MW)
Bo Thong 1 & 2 (2 plants - 16 MW)
Tadsakoi (30 MW)
Phu Yen (1 plants - 257 MW)
(a) Subjected to NEPC consideration
BPLC1 Extension(a)
(103 MW)
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
BGRIM Overview
Q2’2018 Update
Q2’2018 Operating Result
Agenda
12
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
2,223 2,218 2,369
4,356 4,587
27.9% 27.2% 26.9%27.9%
27.0%
23.0%
24.0%
25.0%
26.0%
27.0%
28.0%
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Q2/17 Q1/18 Q2/18 6M/17 6M/18
+231 / 5.3% YoY
Top Line and EBITDA is Growing Strong
6M/2017 to 6M/2018 (YoY):• Sales and service income increased by 8.6% YoY primarily due to
an increase in electrical sales volume resulting from COD of new power
plants - ABPR3 (February 2018), ABPR4 (June 2018) and existing
customers and also an increase in selling price per unit.
Q1/2018 to Q2/2018 (QoQ):• Sales and service income increased 8.0% QoQ primarily due to an
increase in demand from ABPR3 that fully operated in Q2, ABPR4 that
started COD in June and an increase in both electricity sales volume and
selling price per unit to EGAT.
6M/2017 to 6M/2018 (YoY):• EBITDA increased by 5.3% YoY which is in line with an increase in
revenue.
• EBITDA margin was lower to 27.0% in 6M/2018 because EGAT tariff
increase with less proportion than an increase in gas cost resulting from
lower capacity payment due to Baht appreciation during 6M/2018
relative to 6M/2017 .
Q1/2018 to Q2/2018 (QoQ):• EBITDA increased by 6.8% QoQ being in line with an increase in
revenue.
• EBITDA margin was slightly lower to 26.9% in Q2/2018 because
selling price per unit to IUs remain unchanged, while gas cost is higher.
EBITDA AND
EBITDA MARGIN
TOTAL SALE AND
SERVICE INCOME
95% 95% 96%
95% 96%2% 2%2%
2%2%
3% 3% 2%
3%2%
7,964 8,156 8,805
15,615 16,961
Q2/17 Q1/18 Q2/18 6M/17 6M/18
Electricity
Others
Steam
(Unit: THB mm) (Unit: THB mm)
EBITDA
Margin
EBITDA
+841 / 10.6% YoY
+649 / 8.0% QoQ
+1,346 / 8.6% YoY
+151 / 6.8% QoQ
+146 / 6.6% YoY
13
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
2.89 2.943.14 3.27
6M/17 6M/18 6M/17 6M/18
EGAT Industrial Users (TH)
(Unit:THB/KWh) EGAT• EGAT sales volume increased by 8.3% YoY due to COD of ABPR3
and ABPR4 in February and June 2018, respectively.
• Electricity price sales to EGAT slightly increased by 1.7% from Baht
2.89/KWh in 6M/2017 to Baht 2.94/KWh 6M/2018 due to an increase in
energy payment which is indexed to the price of natural gas.
IU Thailand• IU Thailand sales volume increased by 3.7% YoY due to an increase in
demand from new customer entrance in Amata City (Rayong) and existing
customers in Amata City (Chonburi), Amata City (Rayong), Laem Chabang
and Hemraj Industrial Estate.
• Electricity price sales to industry users Thailand increased by 4.1%
YoY which is in line with the change in Ft – the tariff announced by ERC
3,365
1,452
3,643
1,506
6M/17 6M/18 6M/17 6M/18
EGAT Industrial Users (TH)
(Unit: GWh) (Unit: GWh)
Electricity Sales Volume Increased for Both EGAT and IU YoY (6M’2017 vs 6M’2018)
14
KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE 6 MONTHS YoY
ELECTRICITY SALES
VOLUME YoY
ELECTRICITY SELLING
PRICE YoY
763 796
169 175
337 349
108 112 74 74
6M/17 6M/18 6M/17 6M/18 6M/17 6M/18 6M/17 6M/18 6M/17 6M/18
Amata City (Chonburi) Amata City (Rayong) Laem Chabang Hemraj Bangkadi
SALES VOLUME FOR EACH INDUSTRIAL USER
FOR 6 MONTHS (TH) YoY
235.5
244.3
6M/17 6M/18
EFFECTIVE GAS
COST (Unit:THB/mmBTU)
0.0%
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
2.88 3.013.27 3.27
Q1/18 Q2/18 Q1/18 Q2/18
EGAT Industrial Users (TH)
(Unit:THB/KWh) EGAT• EGAT Sales volume increased by 8.3% QoQ due to fully operation of
ABPR3 and COD of ABPR4 in June 2018.
• Electricity price sales to EGAT increased by 4.5% from Baht 2.88/KWh
in Q1/2018 to Baht 3.01/KWh Q2/2018 due to an increase in energy
payment which is indexed to the price of natural gas.
IU Thailand• IU Thailand sales volume increased by 1.0% QoQ due to an increase in
demand from new customer entrance in Amata City (Rayong) and existing
customers in Amata City (Chonburi) and Amata City (Rayong).
• Electricity price sales to Industry Users Thailand remained
unchanged QoQ which is in line with the unchanged in Ft – the tariff
announced by ERC
1,749
749
1,894
757
Q1/18 Q2/18 Q1/18 Q2/18
EGAT Industrial Users (TH)
(Unit: GWh) (Unit: GWh)
15
KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE QoQ
ELECTRICITY SALES
VOLUME QoQ
ELECTRICITY SELLING
PRICE QoQ
393 403
85 90175 173
58 54 37 37
Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 Q2/18 Q1/18 Q2/18
0.0%
SALES VOLUME FOR EACH INDUSTRIAL USER (TH)
QoQ
237.2
251.0
Q1/18 Q2/18
EFFECTIVE GAS
COST (Unit:THB/mmBTU)
Electricity Sales Volume Increased for Both EGAT and IU QoQ (Q1’2018 vs Q2’2018)
0.0%
Amata City (Chonburi) Amata City (Rayong) Laem Chabang Hemraj Bangkadi
* Due to planed maintenance of customer
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
92.5
96.9 96.7 96.7 97.299.7
97.9
94.895.8 96.2 96.7
99.1
90.7
96.693.9
100.0 99.096.1 97.5 97.5 96.6
99.1 99.9 99.4 99.2 98.2
70
75
80
85
90
95
100
ABP1 BPLC1 ABP2 BPLC2 ABP3 ABPR2 ABPR1 BIP1 ABP4 BIP2 ABP5 BPWHA1 ABPR3 ABPR4
2017 6M/2018
Gas-Turbine
Technology Siemens V64.3 GE Frame 6B GE Frame 6B GE Frame 6BSiemens
SGT800 B
Siemens
SGT800 B
Siemens
SGT800 BGE LM 6000PD
Siemens
SGT800 BGE LM 6000PD
Siemens
SGT800 B
Siemens
SGT800 B
Siemens
SGT800 B
Siemens
SGT800 B
8,1
15
8,5
67
8,3
70
8,3
85
7,5
21
7,4
74
7,5
15
7,7
40
7,5
46
7,6
57
7,5
35
7,5
70
8,1
08
8,5
99
8,4
76
8,3
07
7,4
98
7,5
63
7,5
33
7,7
26
7,5
87
7,6
78
7,5
55
7,5
70
7,5
25
7,6
30
ABP1 BPLC1 ABP2 BPLC2 ABP3 ABPR2 ABPR1 BIP1 ABP4 BIP2 ABP5 BPWHA1 ABPR3 ABPR4
2017 6M/2018
(a) (a)
16
High Standard Technology Leads to High Efficiency & Availability
Our SPP power plants realized lower heat rates
Most of our gas-fired cogeneration power plants have availability factors of above 90% since COD
HIGH EFFICIENCY (HEAT RATE)
HIGH AVAILABILTY (AVAILABILTY FACTOR)
COD Sep-98 Jul-01 Sep-01 Feb-09 Oct-12 Jun-13 Nov-13 Apr-15 Nov-15 Jan-16 Jun-16 Nov-16 Feb-18 Jun-18
(a)(b)(c)
Contracted Heat Rate 8,600 BTU/kWh
Contracted Heat Rate 8,000 BTU/kWhContracted Heat Rate 7,950 BTU/kWh
(BTU/kWh)
Note: (a) Electricity equivalent generations of steam dispatched are calculated according to efficiency calculation of EGAT PPA (SPP generation 1)
(b) Acquired on 30 June 2014.
(c) no EGAT PPA
(%)
(a)(b)
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
938
1,901
1,200 581
217166 701
Net Profit UnrealizedFx Loss
Non-recurringexpense
NNP NNP to NCI NNP toOwner
1,519
453 512688
348 318
383801 830
1,071
0
200
400
600
800
1000
1200
1400
Q2/17 Q1/18 Q2/18
10.1%10.2%
12.2%
NNP Margin
NNP to owner
NNP to Non-Controlling Interest (NCI)
6M/2017 to 6M/2018:
• NNP increased 28.5% / NNP to Owner increased 37.3% YoY primarily
due to an increase in revenue, an improvement on financing cost mainly
attributable to a refinancing of project bond in April 2017 and a repayment
of corporate loan in September 2017 and realized gain from a refinancing
of BIP project bond.
• NNP margin improved to 11.2% in 6M/2018, primarily due to the
reduction of financing cost.
Q1/2018 to Q2/2018:
• NNP increased 29.0% / NNP to Owner increased 34.4% QoQ due to an
increase in revenue and a realized gain from a refinancing of BIP project
bond.
• NNP margin improved to 12.2% in Q2/2018, primarily due to the
reduction of financing cost.
Normalized Net Profit (NNP) = Net profit – Unrealized Fx gain (loss) – Non-recurring income (expense)
+241 / 29.0% QoQ
+270 / 33.6% YoY
Reconciliation Items:
• Unrealized Fx loss is due to a depreciation of the Baht against the U.S.
dollar at the ending of each financial statement period.
• Non-recurring expense is due to a bond issuance of BIP1 & BIP2 to
refinance its project financing, remuneration program’s expense and
inventory provision.
NNP for 6 Months Increased by 28.5% YoY and 29.0% QoQ
17
NORMALIZED
NET PROFIT (NNP)(Unit: THB mm)
RECONCILE NORMALIZED NET PROFIT (NNP) OF 6M/2018
(Unit: THB mm)
Net Profit to NCI
Net Profit to owner
8741,200
605
7011,479
1,901
0
500
1000
1500
2000
2500
6M/17 6M/18
+422 / 28.5% YoY
9.5%
11.2%
215
1,071
688
101
616139 383
Net Profit UnrealizedFx Loss
Non-recurringexpense
NNP NNP to NCI NNP toOwner
Net Profit to NCI
Net Profit to owner
RECONCILE NORMALIZED NET PROFIT (NNP) OF Q2/2018(Unit: THB mm)
316
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
71% 71%
29% 29%
31 Dec 17 30 Jun 18
20% 18%
9%9%
71% 73%
31 Dec 17 30 Jun 18
89,241 89,613
Cash and cash equivalents
OtherCurrent Assets
(Unit: THB mm)
Assets
Total
Liabilities
Total
Equity
89,61389,241
Liabilities and Equity
Strong Financial Position Thanks to the Well-Managed Capital Structure
Non- Current Assets
Financial Position as at 30 Jun 2018
Total assets
• Total assets increased by 0.4%, primarily due to a
progress of projects under construction.
Total liabilities
• Total liabilities slightly increased by 0.3%, primarily
due to additional loan drawdown partly offset with
repayment of project loan of operating projects
Total Equities
• Total equities increased by 0.6%, primarily due to the
increase in retained earnings during the period.
18
STATEMENT OF FINANCIAL POSITION
AS OF 30 JUN 2018
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
19
28%
5%34%
2%
4%
THB 53,539 MM(as of 30 June 2018)
Project Level (In Operation)
Loan (THB)
• Only 14% of loan represents loan at the corporate
level. The remaining 86% contributes to debts at
power plant level with limited recourse to sponsor
• Interest obligations of almost all power plant level
debts are swapped to fixed rate
• Only 19% of total loan as at 30 June 2018 is
denominated in USD which is matched with a
proportion of EGAT tariff indexation to USD at project
level, so called “Natural Hedge” strategy
DEBT PROFILE
BGRIM optimizes Capital Structure through Well Managed Debt Profile
THB 15,108 MM
Project Level
(Under Construction)
Loan (THB)
THB 2,826 MM
Project Level
Debenture
THB 18,175 MM
Corporate Level
Loan
THB 1,849 MM
Corporate Level
Debenture
THB 5,496 MM
10%
4.9%
4.7%
4.6%
0.04
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
2016 2017 6M/18
• Financing costs decreased to 4.6% in 6M’2018
due to:
• Refinancing of project bond of 1) ABP3,
ABPR1, and ABPR2 amounting of THB 11.5
billion in Apr 2017 and 2) BIP1 and BIP2
amount of THB 6.7 billion in May 2018 to
reduce financing cost at project level.
• Repayment of corporate loan in the amount of
THB 5.9 billion during Q3’2017
(THB mm)
FINANCING COSTS
Project Level
(Under Construction)
Loan (USD)
THB 1,130 MM
Project Level (In Operation)
Loan (USD)
THB 8,954 MM
17%
BGRIM INVESTOR PRESENTATION
Q2’2018 OPERATING RESULTQ2’2018 UPDATE BGRIM OVERVIEW
Q2’2018
67%
33%
NNP to Owner1H'2018
NET INTEREST-BEARING DEBT
TO EQUITY RATIO
20
• Minimum 40% of normalized net profit of consolidated financial
statements
Capital Structure and Dividend Policy
DIVIDEND PAYMENT
DIVIDEND POLICY
33% of net profit are paid as interim
dividend with the total amount of 391
THB mm
Dividend payment 0.15 THB per
share was approved by BOD on
10 August 2018 and will be paid
by 7 September 2018
1,200
(Unit: THB mm)
-0.1x0.2x
1.4x 1.5x
(0.20)
(0.10)
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
2.00
2.10
2.20
2.30
2.40
2.50
Dec-17 Jun-18
Company only Consolidated
(Times)
Gearing Ratios
• Consolidated net interest-bearing debt to equity ratio increased to1.5x, and for the Company only increased to 0.2x as a result ofa decrease of cash which used to project under construction.
• Manage debt and equity funding to optimize capital structure
• Seek to obtain financing at project level
• Limited-recourse project loan with back-end equity
• Target 3.0x debt to equity project financing at outset,delivering over project life
• Consolidated debt included loans at power plant becauseBGRIM holds majority in most of the projects
CAPITAL STRUCTURE
BGRIM INVESTOR PRESENTATION
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Appendix
21
BGRIM INVESTOR PRESENTATION
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22
60.0%
Acquisition of 51% Shares of BGYSP Projects
Seller Yanhee Solar Power
% ShareholdingPre-transaction: BGRIM 49%
Post-transaction: BGRIM 100%
Capacity 59.7 MW of solar PV
Tariff structure 5.66 baht/KWh for 25 years
COD / PPA end Dec 2015 / Dec 2040
Transaction
proceedTHB 600 mm
Closing Date 5 July 2018
Project Profile
LOCATION:
Nakornpathom
and Ayutthaya,
Thailand
FS for FY 2017:
Revenue THB 509 mm
EBITDA THB 420 mm
Net income THB 115 mm
Location
Investment Solar farm
project
BGRIM INVESTOR PRESENTATION
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Q2’2018
Solar (Vietnam)Other renewable
(Thailand)
Hydro (Laos)
Amata City
(Rayong)
Amata Bien Hoa
60.0%
Solar (Thailand)
23
Core subsidiaries and associates only
(a) B.Grimm Power’s 49.0% associate, B.Grimm Sena Solar Power, has an economic interest of 97.0% in these projects through preferred shares based on its right to receive 97.0% of the dividends from these projects and have
97.0% of the total voting rights at shareholders’ meetings. Also, in case of liquidation (after all debts are repaid), B.Grimm Sena Solar Power Limited has the right to receive the following before other ordinary shareholders (i) 97.0%
of dividends from unallocated profits, (ii) 97.0% of all reserves required by law and (iii) any capital surplus
(b) B.Grimm Power’s 49.0% subsidiary, BGYSP, has an economic interest of 99.0% in these projects through preferred shares based on its right to receive 99.0% of the dividends from these projects and have 99.0% of the total voting
rights at shareholders’ meetings. Also, in case of liquidation (after all debts are repaid), BGYSP has the right to receive the following before other ordinary shareholders (i) 99.0% of dividends from unallocated profits, (ii) 99.0% of all
reserves required by law and (iii) any capital surplus
Note: As of 30 June 2018
*Preferred Shares
Hemaraj
Bangkadi
Laem ChabangAmata City (Chonburi)
51.2%
ABP1
(166MW)
ABP2
(171MW)
ABP3
(133MW)
ABP4
(131MW)
ABP5
(131MW)
69.3%
70.0%
60.0%
50.0%
50.0%
30.0%
29.9%
29.9%
Amata B.Grimm
Power Holding
25.3%*27.4%
*47.4%
ABPR1
(123MW)
ABPR2
(123MW)
ABPR3
(133MW)
ABPR4(133MW)
ABPR5(133MW)
50.0%
29.9%
50.0%
29.9%
29.9%
62.0%
30.0%
62.0%
30.0%
B. Grimm Power
Holding
(Laem Chabang)
BPLC1
(103MW)
BPLC2(56MW)
100.0%
100.0%
100.0%
Amata Power
(Bien Hoa)
(13MW)
60.0% BGYSP
(60MW)
BGPSK
(8MW)
Thai Wind
Power
(Mukdhahan)
Bo Thong
(16MW)
49.0%*(b)
100.0%
70.0%
BIP1
(115MW)
BGPR1
(120MW)
BIP2
(115MW)
74.0%
74.0%
100.0%
26.0%
B.Grimm
Sena
Solarwa
(39MW)
TPS
(8MW)
49.0%*(a)
ABPIF
30.0%
BPWHA1
(130MW)75.0%
BGPR2
(120MW)100.0%
B. Grimm
Power Lao
XXHP
(20MW)
70.0%
100.0%
Holding Company
Power Plant Project Company
Infrastructure Fund
50.0%
74.0%
29.7%
30.0%
49.0%*(a)
Nam Che
(15MW)
Nam Khao
(68MW)
72.0%
72.0%
Amata B. Grimm
Power
BGPSP100.0%
Corporate Structure
48.0%
Interchem
(5MW)
Solar WVO
7 Projects
(31MW)
100.0%
100.0%
DTE
(420MW)
55.0%
BGRP 2
PHU YEN
(257MW)
80.0%
100.0%
100.0%
60.0% 60.0%60.0% 60.0%
49.0%
60.0% 60.0%
VTS
BGRP 1
100.0%
BGRIM INVESTOR PRESENTATION
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24
BGRIM’s Shareholders
34.0%
24.4%
9.1%
1.1%
0.4%
31.1%
B.Grimm Power
(Singapore) PTE. LTD.
Mr. Harald Link
B.Grimm
Joint Venture Holding
Ms. Caroline Link
Public
Shareholders
(a) B.Grimm Power (Singapore) PTE. LTD., B.Grimm Joint Venture Holding, Mr. Harald Link and Ms. Caroline Link are subject to regulatory shares lock up of 55% of post-IPO shares
Top Public Shareholders (as of 29 Jun 18) %
1. EUROCLEAR NOMINEES LIMITED 4.7%
2. Bualuang Long-Term Equity Fund 1.8%
3. Muang Thai Life Assurance Co., Ltd 1.2%
4. Thai Life Insurance Co., Ltd 1.1%
5. Bualuang Long-Term Equity Fund 75/25 0.8%
6. Others 21.5%
Total 31.1%
PUBLIC SHAREHOLDERSWITH 2,606.9 MM SHARES(a)
Directors and
Management
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25
Note:
(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant
(b) Amata B.Grimm Power owned 30.0% of ABPIF’s units and consequently, our economic ownership of Amata B.Grimm Power 1 Limited and Amata B.Grimm Power 2 Limited was 15.3%
(c) NEPC is currently in the process of establishing policies relating to the extension of SPP PPAs that will expire between 2019 – 2025 (include ABP1, ABP2 and BPLC1) for 10 years with up to the existing contracted capacity.
(d) Acquired from Sime Darby Energy on 30 June 2014
(e) We instead purchase power directly from a subsidiary of EVN which we then on-sell to industrial users in Amata City Bien Hoa Estate
Operational Power Plants: Conventional
Company Abbreviation Fuel Type COD
Economic
Ownership
%(a)
Capacity Main PPA Industrial User
Installed Equity Offtaker /PPA Expiry
Contracted
Capacity (MW)
Electricity
Contracted
Capacity (MW)
Steam Contracted
Capacity
(MW) (MW) Program (t/h)
Amata Nakorn Industrial Estate, Thailand
Amata B.Grimm Power 1 ABP1 Gas-Fired Cogen Sep-98 15.3%(b) 166.4 25.5 EGAT (SPP) Sep-19(c) 90.0 106.2 6.0
Amata B.Grimm Power 2 ABP2 Gas-Fired Cogen Sep-01 15.3%(b) 171.2 26.2 EGAT (SPP) Sep-22(c) 90.0 82.2 16.0
Amata B.Grimm Power 3 ABP3 Gas-Fired Cogen Oct-12 60.7% 132.5 80.4 EGAT (SPP) Oct-37 90.0 46.1 13.0
Amata B.Grimm Power 4 ABP4 Gas-Fired Cogen Nov-15 55.5% 131.1 72.8 EGAT (SPP) Nov-40 90.0 32.5 –
Amata B.Grimm Power 5 ABP5 Gas-Fired Cogen Jun-16 55.5% 131.1 72.8 EGAT (SPP) Jun-41 90.0 33.4 13.0
Subtotal 732.3 277.6 450.0 300.4 48.0
Amata City Industrial Estate, Thailand
Amata B.Grimm Power (Rayong) 1 ABPR1 Gas-Fired Cogen Nov-13 61.7% 123.3 76.1 EGAT (SPP) Nov-38 90.0 17.0 14.0
Amata B.Grimm Power (Rayong) 2 ABPR2 Gas-Fired Cogen Jun-13 61.7% 124.4 76.8 EGAT (SPP) Jun-38 90.0 24.0 14.0
Amata B.Grimm Power (Rayong) 3 ABPR3 Gas-Fired Cogen Feb-18 55.5% 133.0 73.8 EGAT (SPP) Feb-43 90.0 18.0 -
Amata B.Grimm Power (Rayong) 4 ABPR4 Gas-Fired Cogen Jun-18 55.5% 133.0 73.8 EGAT (SPP) Jun-43 90.0 16.0 -
Subtotal 513.7 300.5 360.0 75.0 28.0
Laem Chabang Industrial Estate, Thailand
B.Grimm Power (Laem Chabang) 1 BPLC1 Gas-Fired Cogen Jul-01(d) 100.0% 103.0 103.0 EGAT (SPP) Jul-22(c) 60.0 50.1 46.2
B.Grimm Power (Laem Chabang) 2 BPLC2 Gas-Fired Cogen Feb-09(d) 100.0% 56.1 56.1 – – – 60.8 18.5
Subtotal 159.1 159.1 60.0 110.9 64.7
Bangkadi Industrial Park, Thailand
B.Grimm BIP Power 1 BIP1 Gas-Fired Cogen Apr-15 74.0% 114.6 84.8 EGAT (SPP) Apr-40 90.0 14.0 –
B.Grimm BIP Power 2 BIP2 Gas-Fired Cogen Jan-16 74.0% 114.6 84.8 EGAT (SPP) Jan-41 90.0 18.5 –
Subtotal 229.2 169.6 180.0 32.5 –
Hemaraj Industrial Estate, Thailand
B.Grimm Power (WHA) 1 BPWHA1 Gas-Fired Cogen Nov-16 75.0% 130.2 97.5 EGAT (SPP) Nov-41 90.0 31.0 –
Gas-Fired Cogen Total 1,764.5 1,004.2 1,140.0 549.8 140.7
Amata City (Bien Hoa) Industrial Estate, Vietnam
Amata Power (Bien Hoa)(e) APB Diesel Generator Apr-99 30.7% 13.0 4.0 – – – 310.5 –
Conventional Total 1,777.5 1,008.3 1,050.0 860.3 140.7
BGRIM INVESTOR PRESENTATION
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26
Note: As of 30 June 2018
(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant.
Company / Project Abbreviation Location CODEconomic
Ownership %(a)
Capacity Main PPA(s)
Installed
(MW)
Equity
(MW)
Offtaker /
ProgramPPA Expiry
B.Grimm Yanhee Solar Power BGYSP 100.0% 59.7 59.7
Sai Luang 2
Pathumthani province,
ThailandDec-15
8.0 8.0
PEA (FiT) Dec-40
Sai Luang 3 8.0 8.0
Sai Luang 9 7.2 7.2
Sai Luang 10 7.5 7.5
Sai Yai Nha 8.0 8.0
Sai Manow 8.0 8.0
Sai Putsa 8.0 8.0
Sai Sena 2 Ayutthaya province, Thailand 5.0 5.0
Solarwa Solarwa 47.5% 38.5 18.3
Sai Lui Rim Num
Nakhon Pathom province,
Thailand
Dec-15
8.0 3.8
PEA (FiT) Dec-40
Sai Chalouw 1 8.0 3.8
Sai Sab 8.0 3.8
BGTTRE2Saraburi province, Thailand
8.0 3.8
BGTTRE3 6.5 3.1
TPS Commercial TPS Saraburi province, Thailand Dec-15 47.5% 8.0 3.8 PEA (FiT) Dec-40
B.Grimm Solar Power (Sakaeo) 1 BGPSK Sakaeo province, Thailand Apr-16 100.0% 8.0 8.0 PEA (FiT) Apr-41
Total 114.2 89.8
Operational Power Plants: Solar
BGRIM INVESTOR PRESENTATION
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27
Source: Company filing and data as of 31 March 2017, EGAT, PEA
(a) Some contract terms are year-on-year basis
(b) According to concession agreements
SPP Gas-fired Cogeneration Solar PV Wind Hydro
EGATIndustrial Users
PEA (FiT) PEA (Adder) EDLElectricity Steam
Term (years) 21 – 25 years 5 – 15 years(a) 5 – 15 years(a) 25 years 5 years 25 years
Extension option * –5 years
auto extensionUp to 10 years
Contracted capacity90 MW
(except for BPLC1
which is 60MW)
Depends on each contract 5 – 8 MW 8 MW 6.7 – 15 MW(b)
Secured fuel supply N/A N/A N/A
Natural gas cost pass-through
(at contracted heat rate)Partially through Ft Depends on contract N/A N/A N/A
FX pass-through Partially through Ft – – – –
Inflation indexation – – – – –
Tariff See next page 5.66 THB/kWh
PEA wholesale +
10-year adder at
3.50 THB/kWh
0.065 US$/kWh
Applicable power plants ABP1-5, ABPR1-5, BPLC1, BIP1-2, BPWHA1, BGPR1-2
BGYSP (8 projects),
Solarwa (5 projects),
TPS, BGPSK
Bo Thong
(2 projects)
XXHP (2 projects),
Nam Che, Nam Khao
1-5 (5 projects)
Contractual Overview: Commercial Features
*NEPC is currently in the process of considering policies relating to the extension/replacement of SPP PPAs that will expire between 2019 – 2025 (include ABP1,
ABP2 and BPLC1)
BGRIM INVESTOR PRESENTATION
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Electricity Tariff = Capacity Payment + Energy Payment + Fuel Saving
Payment + VAT
Capacity Payment Rate (THB/kW/month) = 𝐶𝑃0 × 𝑥 ×𝐹𝑋𝑡
𝐹𝑋0+(1− 𝑥)
Energy Payment Rate (THB/kWh) = 𝐸𝑃0 +𝑃𝑡−𝑃0
106× contracted Heat rate
Fuel Saving Payment Rate (THB/KWh) = 𝐹𝑆0 ×𝑃𝐸𝑆𝑡
10%
𝐹𝑋𝑡 = THB/ US$ Exchange Rate
𝑃𝑡 = Price for natural gas PTT sells to SPPs in a month (THB/mmBTU)
𝑃𝐸𝑆𝑡 = primary energy saving (“PES”) statistic measuring the efficiency rate of
our gas-fired cogeneration power plant in consuming natural gas in the
generation of electricity and thermal energy
Source: Company filing and data, EGAT
SPP Regulation 1992, 2005 2007 2010
Applicable power plantsABP1-2,
BPLC1
ABP3,
ABPR1-2,
BIP1
ABP4-5,
ABPR3-5,
BIP2, BOWIN,
BGPR1-2
Base Capacity Payment Rate
(𝐶𝑃0) (THB/kW)302.00 383.66 420.00
Base Exchange Rate (𝐹𝑋0)
(THB/US$)27 37 34
US$THB FX indexation (𝑥) 0.8 0.5 0.5
Base Energy Payment Rate
(𝐸𝑃0) (THB/kWh)0.85 1.70 1.85
Base Price for Natural Gas
PTT sells to SPPs (𝑃0)
(THB/mmBTU)
77.0812 209.4531 232.6116
Contracted Heat Rate
(BTU/kWh)8,600 8,000 7,950
Fuel Saving Payment -
Base Fuel Saving Payment
(𝐹𝑆0) (THB/kWh)- 0.36 0.36
Contractual Overview: EGAT PPA under SPP Program
TARIFF STRUCTURE
BGRIM INVESTOR PRESENTATION
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29
Projects
Installed
Capacity
(MW)
Steam
Capacity
(ton/hr)
Type of maintenanceDuration
(days)
2018
Q1 Q2 Q3 Q4
Amata Nakorn
ABP1 166.4 30.0 Major Overhaul 22
ABP2 171.2 30.0Major Overhaul 22
Major Overhaul 11
ABP3 132.5 30.0 Major Inspection 17
ABP4 131.1 30.0 Major Inspection 13
Laem Chabang
BPLC1 103.0 50.0Major Overhaul 14
Major Overhaul 8
Bangkadi
BIP1 114.6 20.0 Major Inspection 10
BIP2 114.6 20.0 Major Inspection 10
Maintenance Schedule in 2018
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30
Abbreviation & Our Projects
ABBREVIATIONADB Asian Development Bank
COD Commercial Operation Date
EBITDA Earnings before Interest, Taxes, Depreciation and Amortization
EDL Electricite Du Laos
EGAT Electricity Generating Authority of Thailand
ERC Energy Regulatory Commission
EPC Engineering, Procurement and Construction
EVN Electricity of Vietnam
FiT Feed-in Tariff
FX Foreign exchange
IPO Initial public offering
IU Industrial user
IWTE Industrial Waste to Energy
JV Joint venture
KWh / GWh Kilo / Gigawatt-hour
MEA Metropolitan Electricity Authority
mmBtu Million Btu (unit of gas consumption)
NNP Normalized net profit
O&M Operations and maintenance
P.A. Per annum
PEA Provincial Electricity Authority (Thailand)
PPA Power purchase agreement
PTT PTT public Company Limited
ROA Return on assets
ROE Return on equity
SG&A Selling, general & administrative expense
YE Year End
YoY Year-on-Year
OUR PROJECTSABPIF Amata B.Grimm Power Plant Infrastructure Fund
ABP1 Amata B.Grimm Power 1
ABP2 Amata B.Grimm Power 2
ABP3 Amata B.Grimm Power 3
ABP4 Amata B.Grimm Power 4
ABP5 Amata B.Grimm Power 5
ABPR1 Amata B.Grimm Power (Rayong) 1
ABPR2 Amata B.Grimm Power (Rayong) 2
ABPR3 Amata B.Grimm Power (Rayong) 3
ABPR4 Amata B.Grimm Power (Rayong) 4
ABPR5 Amata B.Grimm Power (Rayong) 5
BGPSK B.Grimm Solar Power (Sakaeo) 1
BGSENA B.Grimm Sena Solar Power Limited
BGYSP B.Grimm Yanhee Solar Power
BIP1 B.Grimm BIP Power 1
BIP2 B.Grimm BIP Power 2
BPLC1 B.Grimm Power (Laem Chabang) 1
BPLC2 B.Grimm Power (Laem Chabang) 2
BPWHA1 B.Grimm Power (WHA) 1
Nam Che Nam Che 1 Hydro Power Project
XXHP Xenamnoy 2 and Xekatam 1 Hydro Power Project
Interchem Progress Interchem
Solar WVO Solar WVO-Cooperatives Projects
DTE Dau Tieng Ninh Energy
BGRIM INVESTOR PRESENTATION
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INVESTOR RELATIONS
31
IR Contact
Disclaimer
None of the Company makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document or otherwisemade available nor as to the reasonableness of any assumption contained herein or therein, and any liability therein (including in respect of any direct, indirect or consequentialloss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise or representation, whether as to the past or the future and noreliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Further, nothing in this document shouldbe construed as constituting legal, business, tax or financial advice.
This document is a summary only and does not purport to contain all of the information that may be required to evaluate any potential transaction and any recipient hereof shouldconduct its own independent analysis of the Company, including the consulting of independent legal, business, tax and financial advisers. The information in these materials isprovided as at the date of this document and is subject to change without notice.
.
Gunnlapat Wichutarat
Email: [email protected]
Tel: +66 (0) 2710 3570
Thunruethai Makaraphan
Email: [email protected]
Tel: +66 (0) 2710 3087
Contact Us:
Dr. Gerhard Link Building,
5 Krungthepkreetha Road, Huamark,
Bangkapi, Bangkok 10240, Thailand
Tel: +66 (0) 2710 3400
Fax: +66 (0) 2379 4245
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