electricity generating pcl upgraded
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Electricity Generating PCL UpgradedTRANSCRIPT
Corporate Presentation Annual Period Financial Results
Ended 31 December 2010
2
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 hasbeen 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) 998-5145-7 or Email: [email protected].
Disclaimer Statement
3
Table of Contents
• EGCO Restructuring
• Thailand’s Electricity Industry Overview
• EGCO Group’s Overview
• Financial Results
• Appendices
4
EGCO Restructuring
PRESIDENT
RayongPower Plant
SEVP- Business Development International
SEVP- Business Development Domestic
SEVP- Finance and Corporate Services
Seconded Management to Subsidiaries
5
EGCO Restructuring
Executive Profiles
Mr. Piya Jetasanon
SEVP- Finance and Corporate Services
Mr.Piya holds MBA from Ramkhamhaeng University and B.A. (Economics) from Thammasart University. He also attended course on “Directors Certification Program Course” at Thai Institute of Directors Association Program and “Executive Development Program Course”at Thai Listed Companies Association. He has over 20 years of experience in corporate finance and project finance in Thailand and ASEAN region. He was also one of the pioneers in EGAT partially privatization and the listing of EGCO in the Stock Exchange of Thailand in 1995. Prior to joining EGCO, he was in charge of Head of Financial Policy Section at EGAT.
6
EGCO Restructuring
Executive Profiles
Mr. Voravit Potisuk
SEVP- Business Development Domestic
Mr. Voravit holds MBA from University of Thai Chamber of Commerce and B.Eng. (Electrical and Communication) from ChulalongkornUniversity. He also attended course on “Director Certification Program 101” at Thai Institute of Directors Association (IOD), “Management of Public Economic for Executives” at King Prajadhipok’s Institute and NIDA – Wharton Executive Leadership Program. He has worked in Electricity Generating Business for more than 30 years with the expertise in construction, engineering, project management and International and Domestic Business Developments. Prior to joining EGCO, he was in charge of Chief of Electrical Unit, South Bangkok Combined Cycle Power Plant Construction Project, Thermal Power Construction Department of the Electricity Generating Authority of Thailand.
Thailand’s Electricity Industry Overview
8
Source: EPPO and EGAT
IPP : Independent Power ProducerEGCO’s IPPs have 11% market share.
SPP : Small Power ProducerEGCO’s SPPs have 0.64% market share.
INT. : International = Purchases from Laos & Malaysia EGCO’s Import have 1.07% market share.
MEA : Metropolitan Electricity Authority
PEA : Provincial Electricity Authority
* The percentages refer to market share of total installed capacity as of 31 January 2011 which was 30,920.01 MW.
INT. (5.14%)*
2
End Users
EGAT Transmission
EGAT *(48.51%)
MEADirect
Customers
PEA
IPP (39.30%)* SPP (7.06%)*
Thailand’s Electricity Industry Overview : Current Electricity Supply Industry
Increasing importance of international power supply
9Source: EGAT
Thailand’s Electricity Industry Overview :Historical Demand Growth
Note. - Peak demand in January 2011 was on the 24th of 21,288.30 MW.
MW
24,009.90 MW or 8.91% increase from 2009
22,044.90 MW or -2.32% decrease from 2008
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
January February March April May June July August September October November December
10
Thailand’s Electricity Industry Overview :Energy Generation Sales by Categories
Jan – Dec 2010Jan - Dec 2009
2009
Market Share
9,38
3,67
0,75
9
56,0
85,4
63,3
91
22,2
82,4
34,1
26
30,2
54,6
71,2
82
14,3
30,8
15,5
13
33,2
13,6
16,2
87
15,5
86,6
65,1
44
23,7
48,7
23,7
47
63,7
96,6
93,0
35
10,1
34,8
58,7
57
Residential Small GeneralService
Medium GeneralService
Large GeneralService
Others
+ 9.78%
Unit : Gwh
+ 6.58%
+ 13.75%
+ 8.76%
+ 8.01%
11
Corporate Overview :Thailand’s New Capacity (2010 – 2017)
Source: PDP 2010 Revised by 12 March 2010
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2010 2011 2012 2013 2014 2015 2016 2017
Nam Theun 2 920 MW
VSPP 367 MW
North BKK. # 1 670 MW
Nam Ngum 2 597 MW
Gheco-one 660 MW
Renew 160 MW + Others 38 MW
SPP (Co-Gen) 720 MW
Theun Hin.-Exp. 220 MW SEC # 1-2
2x800 MW
NPS # 1-2 2x135 MW
Wang Noi # 4 800 MW
PGS # 1-2 2x800 MW
Chana # 2 800 MW
NPS # 3-4 2x135 MW
New Plants (Southern)
800 MWEGAT # 3-4
(Lamtakong) 2x250 MW
VSPP 187 MW
Renew 90 MW
SPP (Co-gen) 90 MW
VSPP 258 MW
SPP (Co-gen)
704 MW
VSPP 162 MW
Renew 65 MW + Others 29 MW
Others 54 MW
VSPP 192 MW SPP (Co-gen) 90 MWOthers 18 MW
Hongsa # 1-2 2x491 MW
SPP (Co-gen) 270 MW
VSPP 167 MW
Others 26 MW
Hongsa # 3 491 MW
Mong Kok # 1-3 3x123 MW
SPP (Co-gen) 270 MW
VSPP 231 MW Others 17 MW
Nam Ngum 3 440 MW
SPP (Co-gen) 270 MW
VSPP 229 MW
Others 11 MW
28.1% 27.1% 23.7% 25.4% 23.4% 26.0% 27.2% 23.2%
Reserve Margin
EGAT Private Players New Plants VSPPSPP (Co-gen) Renew & Others
Source: EPPO - PDP 2010 (Revised) as of April 2010
12
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Corporate Overview :Thailand’s New Capacity (2018 – 2030)
Neighboring Country
EGAT # 1 (Coal)
800 MW
450 MW
SPP (Co-gen) 270 MW
VSPP 176 MWOthers 30 MW
600 MW 600 MW 600 MW 600 MW 600 MW 600 MW 600 MW 600 MW 600 MW 600 MW 600 MW 600 MW
VSPP 177 MWSPP (Co-gen)
270 MW
Others 8 MW
EGAT # 1 (Nuclear) 1000 MW
SPP (Co-gen) 270 MW
VSPP 190 MWOthers 22 MW EGAT # 2
(Coal) 800 MW
EGAT # 2 (Nuclear) 1000 MW
SPP (Co-gen) 380 MW
VSPP 294 MW
VSPP 135 MWOthers 61 MW
EGAT # 1 (Natural Gas)
800 MW
SPP (Co-gen) 360 MW
Others 36 MW
EGAT # 2-6 (Natural Gas)
5x800 MW
EGAT # 3 (Coal)
800 MW
SPP (Co-gen) 360 MW
VSPP 146 MW
EGAT # 3 (Nuclear) 1000 MW
SPP (Co-gen) 360 MW
SPP (Co-gen) 360 MW
SPP (Co-gen) 360 MW
SPP (Co-gen) 360 MW
SPP (Co-gen) 360 MW
SPP (Co-gen) 360 MW
SPP (Co-gen) 540 MW
VSPP 148 MW
VSPP 163 MW
VSPP 159 MW
VSPP 173 MW
VSPP 179 MW
VSPP 179 MWVSPP 169 MW
EGAT # 4 (Nuclear) 1000 MW
EGAT # 7 (Natural Gas)
800 MW
EGAT # 8-9 (Natural Gas)
2x800 MW
EGAT # 4-5 (Coal)
2x800 MW EGAT # 10 (Natural Gas)
800 MW
EGAT # 5 (Nuclear) 1000 MW
EGAT # 6-7 (Coal)
2x800 MW
EGAT # 11-12 (Natural Gas)
2x800 MW
EGAT # 8 (Coal)
800 MW
EGAT # 13 (Natural Gas)
800 MW
EGAT # 9 (Coal)
800 MW
Reserve Margin
17.3% 15.0% 15.6% 15.4% 16.0% 16.7% 16.5% 16.3% 15.9% 15.4% 16.3% 16.3% 15.0%
EGAT Neighboring Country VSPPSPP (Co-gen) Renew & Others
Source: EPPO - PDP 2010 (Revised) as of April 2010
EGCO Group’s Overview
14
EGCO Group’s Overview : EGCO Group Investment
Note: Since December 2008, installed capacity of GPG, WMPC, SPPC, and NT2 have been adjusted to gross MW capacity
so that all figures shown will be on the same basis.
15
• Seek ASEAN region opportunities
• Develop or acquire IPP&SPP projects including increase stakes in existing IPP projects
• Develop renewable energy projects (SPP)
• Negotiate on REGCO & KEGCO PPA Extension
EGCO Group’s Overview : EGCO Group’s Strategic Direction
Continue to focus on power generating business
16
Financial Results
1717
Million Baht
Net Profit
7,936 6,792
2009 2010
(-1,143)
14%
1818
Million Baht
Net Profit before FX
7,506 6,220
2009 2010
(-1,285)
17%
1919
Million Baht
FX of SUBs and JVEs
430
572
20102009
14233%
2020
Operating ResultsEnded December 31, 2009 and 2010
Million Baht
YE2009 YE2010 +/- % DiffRevenues (EGCO + Subs) 9,494.54 8,995.18 (499.36) -5%Share of profit from JVEs bf FX 5,875.51 5,561.77 (313.74) -5%Expenses (EGCO + Subs) 7,864.87 8,336.35 471.48 6%Profit before FX 7,505.17 6,220.60 (1,284.58) -17%Gain (loss) from FX (Subs&JVEs) 430.42 571.65 141.22 33%
Net Profit 7,935.60 6,792.24 (1,143.35) -14%
21
Summary ResultsEnded December 31, 2009 and 2010
2222
177
-529
693505
6,659
239
-798
1,287
413
5,079
2009 2010Million Baht
IPP SPP Overseas Others EGCO
24%
18%86%
35%51%
Net Profit before FXEnded December 31
2323
Million Baht
Net Profit before FXEnded December 31, 2010
Million Baht
By Segment
IPP 72%5,079 MB
SPP 6%413 MB
Overseas 18%1,287 MB
Others 4%239 MB
2424
Million Baht
By Company
Net Profit before FXEnded December 31, 2010
ET 1%
EGCO Cogen 2%
Rayong Power plant 7%
GPG (KK2) 25%
GCC, NKCC, SCC, GYG, 4%
KEGCO 7%
BLCP 33%
Conal 2%
Roi Et Green 1%
NTPC 8%
Quezon 8%
ESCO 2%
2,336 MB
501 MB 467 MB
578 MB
1,776 MB
150 MB
100 MB
155 MB
184 MB
145 MB
94 MB
553 MB
25252525
Million Baht
Cash FlowEnded December 31, 2009 and 2010
26262626
Summary of Debt Structure
JPY 1,260 M. 2.23%JPY 571 M.
Total FacilitiesTotal Outstanding Balances
31 December 2010
4.15%USD 27 M. USD 13 M.
93.62%Baht 20,778 M. Baht 8,970 M.
-Total facilities and total outstanding balancesof EGCO & Subs
27
0.20
0.89 0.860.850.89 0.910.94
0.89
0.360.41
0.97
0.310.310.28 0.26
0.220.220.28 0.26
0.24
0.32
0.23 0.220.200.21
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2004
1Q05
1H05
9M05
2005
1Q06
1H06
9M06
2006
1Q07
1H07
9M07
2007
1Q08
1H08
9M08
2008
1Q09
1H09
9M09
2009
1Q10
1H10
9M10
2010
Debt to Equity (Time)
Facility Amount (Million Baht)
Tenor(Years)
Period Interest Rate & FeeDrawndown Amount
(Million Baht)
4,000 3 30 Apr 08 – 30 Apr 11 • 3M THBFIX + fixed margin p.a.• Fixed commitment fee p.a.
-
Revolving Credit Facility
Million Baht
Total Debt : 10,838
Total Equity : 54,817
Cash and cash equivalents : 7,748
Outstanding revolving
credit facility : 4,000
Total : 11,748
EGCO D/E ProfilesEnded December 31, 2010
0.20
28
Dividend Policy
2929
Baht/Share
Interim FinalFinal
Dividend Policy
1.00 1.25 1.25 1.50 1.502.00 2.25 2.50 2.50 2.50
1.251.25 1.50
1.50 1.75
2.00
2.50 2.75 2.752.50
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2.252.50 2.75
3.003.25
4.00
4.755.00
5.25 5.25
Appendices
• Financial Results
• Corporate Overview
• Operating Performance
31Source: Thailand Securities Depository Co., Ltd.
31.73%20.44%
25.41% 22.42%
EGAT OneEnergy Thailand Ltd.
Thai Investors Foreign Investors *
Foreign investors comprise those investing in foreign board (22.39%) and Non-Voting Depository Receipts “NVDR” (9.34%)
1 EGAT 133,773,662 25.41%2 OneEnergy Thailand Limited 118,023,606 22.42%3 Thai NVDR Company Limited 49,159,972 9.34%4 Littledown Nominees Limited 24,343,528 4.62%5 Bangkok Life Assurance Company Limited 10,019,300 1.90%6 CLP SEA Energy Limited 8,030,572 1.53%7 State Street Bank and Trust Company, for London 7,449,805 1.42%8 Chase Nominees Limited 1 7,120,247 1.35%9 Social Security Office (Two-Types) 6,597,800 1.25%10 Chase Nominees Limited 73 6,177,200 1.17%
Total Number of Shares (Share) 526,465,000
(owned by OneEnergy which is jointly owned 50% each by CLP Holding and Mitsubishi Corporation)
Corporate Overview : EGCO Shareholding Structure as of 7 September 2010
*
32
• Mr. Aswin Kongsiri
• Mr. Chaipat Sahasakul
• Mr. Thanapich Mulapruk
• Mr. Somphot Kanchanaporn
• Mr. Phaiboon Siripanoosatien
• Pol. Lt. Gen. Pijarn Jittirat
• Mr. Pornchai Rujiprapa
(Chairman of the Board)
• Mr. Sahust Pratuknukul
• Mr. Kurujit Nakornthap
• Mr. Somboon Arayaskul
• Mr. Hideaki Tomiku
• Mr. Ryota Sakakibara
• Mr. Akio Matsuzaki
• Mr. Toshiro Kudama
Mr. Vinit Tangnoi
Corporate Overview :EGCO Board of Directors
EGAT Directors
OneEnergyDirectors
EGCO President
Independent Directors
33
Note : 1. An installed MW of power plant is shown in each block while the percentage of equity stake together with
an equity MW are shown at each level and add up to total EGCO equity MW above.
2. Since December 2008, installed capacity of GPG, WMPC, SPPC, and NT2 have been adjusted to gross MW capacityso that all figures shown will be on the same basis.
Corporate Overview : EGCO Group Structure
Majority Owned Minority OwnedMW MW
EGCOM Tara
AE
EGCO Group4,660.0 MW
100.0%126.00
2,383.4
117.00
13.10100.0%
80.0%18.3
35.0% 33.33%
Gulf Energy1,510.00
NED824.00 1,895.00 1,086.80
NTPC
100.0% 74.0%1,232.00 9.40 1,434.00
BLCPKEGCO GEC
2,276.6
EGCO BVI
ESCO EGCO-Rayong EGCO Green EGCO Cogen
50.0%100.0%
TJ Cogen120.00
380.4717.0
9.4
GCC NKCC SCC
Roi-ET Green
95.0%
100.0% 50.0%1232.0 7.0 93.6
9.90
824.0 947.5
GYG
GPG
13.1
502.50
CONAL
1510.0
Gulf IPP1,510.00
100.0%
126.00
1,510.00
QPL
23.0040.0%100.0%
23.0
1510.0
QPI
30.1
73.3%361.2
110.0
492.50
1510.0100.0%
55.0%109.60
55.0%
159.60
55.00
10.0%13.1
130.7090.0%117.6
100.0%
GPI-I
98.0%
0.0 72.3 0.0
130.7
SPPC
60.336.2%
QGC361.20
WMPC54.80
North Pole159.60
100.0%159.6
28.9
72.30
0.00
159.6
492.5
APMC Alsing NMPC GPIQ0.00
60.0%90.40
80.0% 64.5%
EAST Water
18.72%0.0
0.00100.0%
0.0
0.01.0%
0.0
New Growth BV
100.0%126.0 126.0
110.00100.0%100.0%
120.0
74.2%
100.0%
XHPP1,285.00
12.50%160.6
99.0%0.00New Growth Coop
100.0%
34
Corporate Overview : EGCO Group’s CSR Projects
• Pluak Dang Health Care Market • Mobile Medical Unit Support• Breeding of Blue Swimming Crab • Building for Fostering Local Wisdom• New Home for Undersea Livings
(artificial coral reefs) Year 3• The cultivation of baby Staghorn Coral in East
Coast of Thailand• The study of dolphin population and behaviors
at Khanom District to support dolphin conservation and to promote ecological tour ofKhanom and nearby communities.
• Biological Agriculture: Sufficiency for Sustainability• Youth learning development • Khao Chamao Conservation Youth Camp • Public lighting maintenance volunteer project
• A Watershed Forest: A Source of Energy forLife project
• Forest: the Circle of Life • Bor Nam Phud water source conservation
project at Baan Jedi Luang, Khaun Thong subdistrict, Khanom district, Nakhon Sri Thammarat province
• EGCO Forest Conservation Youth Camp• How to Fight Against Global Warming with
Sustainable Living Green Learning • EGCO Green Blood
Paths for Promotion and Development of Community's “Quality of Life” Paths for Preservation of the “Watershed Forest”
Paths for Promotion of Learning and Building a Public Conscience in “Youths”
Appendices
• Corporate Overview
• Financial Results
• Operating Performance
363636
Financial Results :Operating Results ended December 31, 2009 and 2010
Million Baht
373737
11,559
-568 -621
33
-2,467
7,936
10,286
-569 -455
11
-2,481
6,792
EBITDAEBITDA
Finance costs Tax DA FX
Net ProfitNet Profit-11%
Financial Results :EBITDA and Net Profit Ended December 31, 2009 and 2010
YE09 YE10
-14%
Million Baht
383838
Financial Results :Operating Results – Q4/2009 VS Q4/2010
Million Baht
393939
Financial Results :Segmental Operating Results Ended December 31, 2009
Million Baht
404040
Financial Results :Segmental Operating ResultsEnded December 31, 2010
Million Baht
414141
Financial Results :Segmental Operating ResultsQ4/2009
Million Baht
424242
Financial Results :Segmental Operating Results Q4/2010
Million Baht
434343
Financial Results :Financial Ratio Highlights
444444
Financial Results :FX Variance Ended December 31, 2009 and 2010
Million Baht
Appendices
• Corporate Overview
• Financial Results
• Operating Performance
46• EGAT is the sole offtaker for electricity produced by Rayong Power Plant and KEGCO under long term cost-plus based Power Purchase Agreements (PPAs).
• REGCO and KEGCO receive the capacity payment (Rayong Power Plant) or availability payment (KEGCO) for maintaining the availability of the power plants, regardless of whether the electric power will be supplied to EGAT or not.
Operating Performance (IPPs) :Annual Net Generation & Electricity Sales for the Year 2006-2010
Net GenerationGWh
Electricity SalesMM Baht
Rayong Power Plant BLCP KK 2 KEGCO
(Block I)
(Block I)
NT 2
(9 Month)
(9 Month)
47
Operating Performance (IPPs) : Major Maintenance Expenses for the Year 2011
MM Baht
48
Operating Performance (IPPs) : Major Maintenance Expenses for the Year 2010
MM Baht
49
Operating Performance (IPPs) : Major Maintenance Expenses for the Year 2009
MM Baht
50
Operating Performance (IPPs) : Operating Performance Equivalent Availability Factor
51
Operating Performance (IPPs) : Net Generation and Fuel Consumption
52
Thank You