ENERGY ABSOLUTE PUBLIC COMPANY LIMITED Investor …€¦ · B100 562 3% GD&PCM 800 5% Power 260 2%...
Transcript of ENERGY ABSOLUTE PUBLIC COMPANY LIMITED Investor …€¦ · B100 562 3% GD&PCM 800 5% Power 260 2%...
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“A leader in alternative energy business, by using the modern technology and environmentally friendly”
ENERGY ABSOLUTE PUBLIC COMPANY LIMITED
Investor Roadshow Presentation5 June 2020
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EA at a Glance
Financial Highlights
EA Business in Depth
Proposed Offering & Timeline
Agenda 1
2
3
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E@ at GlanceEstablished
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
Market Capitalization (as of 19/05/20)
Approximately THB 148.27 bil. (US$ 4.63 bil.)
Somphote Ahunai (CEO),
43.61%
Amorn Sapthaweekul (CFO) , 3.53%
Domestic Fund, 11.35%
Foreign Juristic, 18.90%
Others, 22.62%
At 20 March 2020
Shareholder Structure
Total Board Members = 11
Independent Directors = 6 (55%)
Executive Directors = 2 (18%)
Other Non - Executive
= 3 (27%)ESG Rating
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Highlight of Operating Performance
Q1/2020 FY2019
Ne
t P
rofi
tTo
tal R
eve
nu
e
THB 4,761 mil.
increase 54% YOY
THB 14,955 mil.
increase 20% YOY
THB 1,452 mil.
increase 20% YOY
THB 6,082 mil.
increase 18% YOY
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Renewable Power
Energy Storage
Electric Vehicle
Palm Oil Based
Charging Network
(1) COD • Solar 278 MW•Wind 386 MW
(2) New Projects
(1) Amita Taiwan 400 MWh
(2) Amita Thailand 1 GWh (by 2020)
(1) MPV car : Mine(2) Ferry (3) Bus & Truck(4) Other Related
(1) B100 & Glycerin(2) Bio-PCM &
Green Diesel(3) Other Related
(1) Station(2) Equipment(3) Online App
“A leader in alternative energy business, by using the modern technology and environmentally friendly”
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EA at a Glance
Financial Highlights
EA Business in Depth
Proposed Offering & Timeline
Agenda 1
3
4
2
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Total Revenue of Q1/2020Revenue for Q1/2020 period increased from Wind Power and Biodiesel unit
Total Revenue increased 54% YoYTotal Operating Revenue increased 53% YoY
Biodiesel29%
Power69%
Others2% Biodiesel
39%
Power59%
Others2%
Q1/2020
787 885 982 1,860 3,511 3,678 1,839 2,120
3,047 2,766
7,681
10,974
130 80 55
106
360
235 -
2,773 3,088 4,109
4,761
12,490
14,955
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q4/2018 Q1/2019 Q4/2019 Q1/2020 2018 2019
Mil.bt.
Accounting gain
Other revenue
Other Businesses
Power
BiodieselGlycerin
• Amount of revenue contributed from power business is increasing YoY after completion of 260 MW wind power, Hanuman Project.
• Stronger demand of B100 as required to use B10 caused the increase in B100 selling price 122% YoY.
Q1/2019
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Gross Profit of 1Q2020
Gross Profit Margin Q1/19 Q1/20
Biodiesel Business 2% 5%
• Higher demand of CPO from the government measurement announcing B10 to be used as regular diesel while there was shrunk from drought in 2019.
• B100 specification change to Mono Glyceride content at 0.4% for use as B10 caused price to increase.
Power BusinessSolarWind
82%64%
82%66%
• Increasing of power production was due to higher solar radiation.• Revenue was fully recognized from Hanuman wind power project • Increasing of power production from Hadkunghan wind power
plant due to strong wind compare to the last year.
Total GPM 52% 44%1,629
2,436 2,075
5,888
8,442
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67 91
212
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(38) (126) (73) (216) (358)
1,604
2,377 2,093
5,884
8,135
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Mil.bt.
Power BU.
Biodiesel BU.
Others BU.
Q1/19 Q4/19 Q1/20 2018 2019
Note: Total Revenue and Net Profit are excluded Accounting Gain, Other Income, Gain/Loss from exchange rate.
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Total Expense & Net Profit of 1Q2020
Solar Gross Profit
Increase
• Administrative expenses: for 1Q2020, were Baht 269 mil., increased by Baht 72 mil. From the personnel expense with new hiring of employee and executive were increased by Baht 41 mil. and also Office expenses were Baht 24 mil. following the new business.
• Financial Cost: increased by Baht 170 million. This is mainly due to long term loan from financial institutions for payment of some part of supplier credits for Hanuman wind power plants project.• FX Gain: Due to buying Forward for payment of supplier credits for Battery plant project
YoY
5,884 8,135
(81)(865) (14)
160
(1,386)11
6,082 5,148
Gross Profit 2018 Gross Profit 2019 Selling Expense Admin Expense Share of Loss ininvestment
FX Gain (Loss) Financial Cost Tax Net Profit 2019 Net Profit 2018
(Mil.Bt)
YoY
(Mil.Bt)
1,604 2,063
(20) (269) 24 (14)
36(433)
1
1,452 1,211
Gross ProfitQ1/2019
Gross ProfitQ1/2020
Selling Expense Admin Expense Gain onremeasurement
of financialinstrument
Share of lossfrom
investments
FX Gain (Loss) Financial Cost Tax Net ProfitQ1/2020
Net ProfitQ1/2019
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Total Liability, Equity, D/E Ratio and Net D/E Ratio
13,429
24,547 30,118 29,786
39,690 45,353 47,619
5,897
8,510
11,389 14,744
19,518
24,866 26,422
2.28
2.882.64
2.02 2.03 1.821.801.82
2.25 2.14
1.57
1.161.41
1.21
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 2019 Q1/2020
THB Mil.
Liabilities Equity D/E Ratio Net D/E
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Financial Cost and Payment Profile
Total Interest Bearing Debt
Current portion of
Debentures & ST-Debt
13%
Debentures33%
LT-Debt54%
42,664Mil.Bt.
3,000 4,000
1,500 1,500 3,000
4,000
1,467
2,272
5,215
3,506
3,355
2,660
2,074
1,386
4,467
6,272 6,715
3,506 4,855
2,660
5,074
1,386 -
4,000
-
3,000
6,000
9,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Mil.Bt. Bond LT-Loan
A
Interest Rate
Short Term Debt: 1.50 – 4.53%
P/N: 1.41 – 3.50%
Long Term Debt: 3.00 – 3.80%
Bond: 2.09 – 3.15%
On 16th October 2019, EA issued THB 3 billion 7-year bond to ADBwith 2.744% interest and was certified by CBI to be green bond.
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Capital Investment in 2020-2021
B100562 3%
GD&PCM800 5%
Power260 2%
Charging430 2%
EV Car&Bus3,35819%
E Ferry1,390 8%Battery Factory
5,196 30%
R&D91
1%
Property Dev., 5,130 , 30%
THB 17,217 mil.
Investment Plan in 2020-2021
Investment Plan Progress / Target
Biodiesel Business B100 : To invest in palm oil and related business
GD&PCM : New plant will start commercial operation in Q3/2020
Battery Factory
(Thailand)Phase l to be completed in Q4/2020, then expand in 2021
Electric Ferry
(42 units)
2 units are to be operated in Q2/2020,
40 units will be completed in Q1/2021
EV Car & Bus EV Car : Start delivering 5,000 cars from Q4/2020 to Q4/2021
EV Bus : Start investing Q3/2020
EV Charging Achieved 400 Stations from 52 provinces in June 2020 and
expanding to nationwide
Property Development To invest 19% stake in Land Prosperity Holding
Power Improve efficiency and maintenanceCash from the beginning 2020 THB 10,029 mil.
Operating Cash in Flow in 2020 (forecast) THB 10,000 mil.
Issue of Debentures (Approved from AGM 2020) THB 15,000 mil.
Sources of Fund
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Financial Highlights
EA Business in Depth
Proposed Offering & Timeline
Agenda
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EA at a Glance1
3
14
134175 188
152 174 158193
50.2 49.8
25.0028.60
30.9935.07
24.1820.17
17.69 16.27
36.15
0.00
10.00
20.00
30.00
40.00
0
100
200
300
2013 2014 2015 2016 2017 2018 2019 Q1/19 Q1/20
Sales Volume
Avg Price
Biodiesel Production
Location Kabinburi Industrial Estate, Prachinburi under BOI promotion & privileges
PlantCapacity
• 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 Q1/20 = 49.8 mil.liters decreased 0.8% as compared to last year but the average
selling price increased 122.2% from the announcement B10 to be used instead of B7
• Glycerin volume in Q1/20 = 3.77 mil.kg. decreased 0.03% as compared to last year and the
average selling price decreased 26% due to the high competition in domestic and export market.
Mil.liters Baht/liter
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Palm oil Market in Thailand
-
100,000
200,000
300,000
400,000
500,000
600,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec19 Jan 20 Feb 20 Mar 20
B100 Food and others Domestic Consumption StockUnit : Ton
Source: Department of Internal Trade, Thailand
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Biodiesel Business with advance technology of GD & PCM
CPO Purification
Green Diesel & PCMProduction (38 : 62)
B100 & GlycerinProduction
Glycerin
B100
Green Diesel
PCM
Sell to major oil refinery companies
Sell to pharmaceuticals , Cosmetics, Personal products
Advance product of biodieselEnhancing diesel engine capacity
BioPCM works as a thermal storage battery good for energy saving
Export Market
Domestic Market
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New Plant forGreen Diesel & PCM
Production
COD• HNM 1 & 8 = 90 MW 25 Jun 19• HNM 5 = 48 MW 22 Mar 19• HNM 9 = 42 MW 30 Mar 19• HNM 10 = 80 MW 13 Apr 19
Adder 3.50 baht/kwhTechnology from Siemens Gamesa, Spain
EA Solar Lampang(90 MW)
EA Solar Nakornsawan(90 MW)
EA Solar Phitsanulok(90 MW)
Renewable PowerProduction
664 MW
EA Wind Hadkanghun(126 MW)
(Songkla & Nakornsri tammarat)
EA Wind Hanuman(260 MW)
(Chaiyaphum)
EA Solar Lopburi(8 MW)
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Renewable Energy Production
153 171 140 162 155
602 62775 58 92 67 83
292 293
25 107 185 152 115
469
253 336
417 381 353
894
1,389
0
200
400
600
800
1000
1200
1400
Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 FY18 FY19
Mil.kWh
SolarHGHHNM
Solar42%Wind
58%664
278 MWh386 MWh
+ 90MWNakornsawan
+ 8MWLopburi
278 278 278 278
126 126
386 386
898 98
188278
404 404
664 664
0
200
400
600
800
2012 2013 2014 2015 2016 2017 2018 2019 2020
MWh
+ 90MWLampang
+ 90MWPhitsanulok
+ 126MWHad Kanghan(Songkla &Nakornsritammarat)
+ 260MWHanuman(Chaiyaphum)
Total Capacity Output Production
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Energy Storage System : Core Technology for New Businesses
1 GWh
Phase I Next Phase
50 GWh
EV Charging Station
Electric
Ferry (E-Ferry)
Electric
Vehicle (EV)
Energy TradingSystem
Energy Storage System
(ESS)
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New era of Advance Technology ESS
Energy Storage System for a small renewable power plant
Battery for E-Scooter
• Started investing in Amita Technologies Inc., Taiwan in Dec 2016 current shareholding = 74.71%
• Amita Technologies Inc. was established in March 2000 to produce lithium-ion power battery with strong material science research and long test data accumulation supported by ITRI.*
• Main Businesses
• High Power Battery for EV, E-Scooter, Power Plant
• OEM (Original Equipment Manufacturer)
• PDCA- Post Dry Cell Battery
• Turnkeys of High Technology Battery Factory for EV in Beijing
• Current production capacity and capability : 44Ah power battery cell over 400MWh per year
* ITRI, a nonprofit R&D organization of Taiwan, who played a vital role in Taiwan's economic growth, strengthen capabilities of innovation and cooperation with international partners all over the world.
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Amita’s Products and Application
Cell Hard & Soft pack
Energy Storage System
E-Bank
Camcorder
Accessories
Model No. AMITA 20FT-ESS
Typical Capacity 0.5-1.5MW
Cycle Life 6,000 (NMC)▕ 20,000 (LTO)
Voltage 48-820V
Versatile Stationary Battery System with High Safety & Manageability for Industrial, Commercial, Power System
Lithium–titanate Battery (LTO) CellFast-charging >10CUltra Lifespan >20,000 CyclesNon-burning and Safety Features
MINE Mobility
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Electric FerriesTo prove the high safety of battery system
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.
Battery 30kWh12 mins with DC Chargerfor 200 km.
Compatible with all EV Brands
Battery: 30 kWh Lithium Ion : NMC
With STOBA Water cooling less humidity (Short circuit cause)
Charging CCS Combo type2 (EU)
Home Charge AC charge & DC Fast charge (80% 12 mins)
with EA Anywhere Charger
22/150 kW AC/DC Combo Charger
EA ANYWHERE Application
Available now
Home
Favorite
Calendar
Payment
Promotion
Report
Log in
Help
Setting
About us
Owner Application Features:
Users Traffic
Energy usage
Chargers Status
Billing System
Station Report
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EA Anywhere – Charging Stations
Opening 384 stations• BKK 185 stations• Up-country 52 provinces
with 199 stations
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Our Target in Y2020
602 627
289 293469891
1,389
73% 79%
0%
20%
40%
60%
80%
100%
0
500
1000
1500
2000
2018 2019 F2020
Mil.MW
Solar Wind-HGH Wind-HNM GP (%)
174 162193
2420
18
0
5
10
15
20
25
30
0
200
400
2017 2018 2019 2020
Mil.liters Avg.Price/Unit
As the government promotes to use B100 to be increased to 10% (from 7%),
the volume and price would increase.
Wind power production will increase according to full year operation.
Biodiesel Renewable Power
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Our Target in Y2020
Electric Vehicle Car : MINE E-Ferry
180
0
1000
2000
3000
Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
No. of EV
EV production is going to start in Q4/2020 and ramp up to complete delivery of 5,000 units by 2021.
0
10
20
30
Q2/20 Q3/20 Q4/20 Q1/21
No. of E-Ferry
The two pilot E-Ferries will start operation in Q2/2020, followed by the next 24 units within 2020 and the rest in 2021.
Total 5,000 cars
Total 42 units
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EA Investment through EA Mobility Holding (EMH)
EMHSubsidiary of
670 mil. Shares = 40%
• To jointly invest in quality development, manufacturing, assembling, and distributing, including the sales and aftersales services of buses, commercial vehicle, and private vehicles.
• EMH will submit the request for waiver from mandatory tender offer by resolution of NEX shareholders’ meeting (Whitewash).
• Working capital 500 – 600 MB.
• Bus business and related 1,520 MB.
• Loan payment 30 MB.
• Others investment 200 MB.
At 2.20 bath per shareMr. Boonaue Jittanom
100 mil. shares
Mr. Kanit Sriwachiraprapa
300 mil. shares
Established
In 1997 to produce high precision electronic parts
Core Business
Manufacturing and selling electronic parts and Buses and related service
CG Rating
Excellent
Objectives of the capital increase
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Financial Highlights
EA Business in Depth
Proposed Offering & Timeline
Agenda
4
2
3
EA at a Glance1
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Investment Highlights
“A leader in alternative energy business, by using the modern technology and environmentally friendly”
Robust cash flows from the power business & Consistent operating performance Power plants remains smooth and consistently beats the benchmark of P50
Diversification into non-power generation businesses EA also invests in other battery and new electric vehicle (EV) ferries and EV cars
Sound financial profile & Adequate liquidity Leverage is expected to stay at fair level for the next years
A leader in alternative energy business EA uses the modern technology which is environmentally friendly and aligns with national PDP, to yield the optimal benefit all stakeholders
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Indicative Structure for EA Debentures (1/2020)
Issuer Energy Absolute Public Company Limited (“EA” or the “Issuer”)
Joint Lead Arrangers KASIKORNBANK Public Company Limited (“KBANK”) and Government Savings Bank (“GSB”)
Debenture Type Thai Baht Unsubordinated and Unsecured Debentures with Debentureholders’ Representative
Offering Type Private Placement to Institutional and/or High Net-Worth Investors (PP – II&HNW)
Company Rating A/Stable by TRIS Rating Co., Ltd. as of 19 May 2020
Issue Rating [A-]/Stable by TRIS Rating Co., Ltd.
Use of Proceeds For refinancing maturing EA debentures (EA207A) and/or working capital
Total Issue Size THB [●] million + Greenshoe option
Tenors [●] years [●] years [●] years [●] years
Coupon Payment Semi-Annually
Principal Repayment At Par Value, Bullet at the Maturity Date
Key Covenants The T&C is modified to be in line with new SEC’s requirement and those of the recent EA’s debentures in 2019
Financial Covenant Net Interest Bearing Debt to Equity* shall not exceed 3.5x; the ratio is to be tested annually
DHR Kiatnakin Bank Public Company Limited (“KK”)
Registrar KASIKORNBANK Public Company Limited (“KBANK”)
Registration Thai Bond Market Association (“ThaiBMA”)
*Please see the draft terms and conditions of the Debentures submitted to the SEC for more details
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Debentures Issuance Timeline
Subscription Period
Bookbuild Date
5 Jun 2020 [1 July] 2020
Group Roadshow
[●] 2020 [●] 2020
Investor Roadshow
Bookbuildingdate
Subscription period
First Filing Submission
Issue date
4 Jun 2020
Disclaimer
This presentation contains summary information about Energy Absolute Public Company Limited (“EA” or “the Company”) and its subsidiaries as at31 March 2020 and, unless stated otherwise. The information does not purport to be complete or comprehensive.
This presentation contains forward looking statements that may be identified by use of words such as “anticipates,” “hopes,” “expects,”“estimates,” “intends,” “projects,”“plans”, “predicts,” “projects”, “aims” or other similar expressions that are used to identify such statements.Forward looking statements are based on certain assumptions and expectations of future events. No guarantee nor assurance is made that theseassumptions and expectations are accurate or will be realized. Such forward looking statements should be considered with caution, since actualresults may differ materially from those expressed or implied by such statements.
The information in this presentation were obtained from various external sources which has not verified through any independent source. Norepresentation or warranty, either express or implied, is made regarding the accuracy, completeness, correctness, reliability, or scope of theinformation and disclaim all responsibility and liability for the information (including, without limitation, liability for negligence).
This presentation is provided for the sole purpose of enhancing understanding of the Company and should not be construed as a legal, tax orinvestment recommendation or any other type of advice.
The Company does not provide any representation, warranty, endorsement, or acceptance, about opinion or statement of any analyst s or otherthird parties; or the use of any such opinion, or statement of any analysts or other third parties.
This document is strictly confidential and being given solely for your information and may not be shared, copied, reproduced or redistributed toany other person in any manner.