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OPPORTUNITY DAY Q3 2013
November 13, 2013
CK Power Public Company Limited
1
Disclaimer
The views expressed here may contain information derived from publicly available sources that have not been independently
verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward
looking information contained in this presentation has been prepared based on number of assumptions which may be
incorrect and/or not properly represent actual situation incurring in the future. The actual information contained in this
presentation is for the purpose of illustration and presentation only. Should there be any discrepancies with audited/reviewed
financial statements, annual report, and other official filings to SEC, the information presented in such documents should be
relied upon as official information.
This presentation should not be relied upon as a recommendation or forecast by CK Power Plc. This presentation shall not
be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
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Business Overview
Q3 / 2013 Highlights
Q3 / 2013 Performance
CKP Outlooks
Agenda
2
3
CK Power
Bangkok
Expressway Public
Company Limited (BECL)
Thai Tap Water
Supply Public
Company Limited (TTW)
15.15%
23.22%
31.78% 25.00%
19.04%
20.24%
20%
Ch. Karnchang
Public Company Limited (CK)
Public
Business Overview : Strong Synergy
The Flagship Power Development Company of CK Group with Strong Synergy
3
4
CK POWER
Hydro Power Plant Solar Power Plant Cogeneration Power Plant
SouthEast Asia
Energy
Company Limited (SEAN)
Nam Ngum 2
Company Limited (NN2) 615 MW
Bangkhenchai
Company Limited
(BKC)
8 MW
Nakorn Ratchasima
Solar Company
Limited (NRS)
6 MW
Chiangrai Solar
Company Limited
(CRS)
8 MW
Bangpa-in Cogeneration
Company Limited
• Project 1 (BIC 1)
Power 117.5 MW
Steam 19.6 ton/hour • Project 2 (BIC 2)
Power 120 MW, Steam 20 ton/hour
56%
75%/2
100%
30%/3
30%/3
65%/4
1 2 3
Note: /1 Total MW calculated on power projects with signed PPAs, while Effective Equity MW is 424.9 (Hydro 258.3 MW, Cogeneration 154.4 MW and Solar 12.2 MW)
/2 25% held by EDL GEN
/3 70% held by Sonnedix
/4 25% held by PTT, 8% by IEAT and 2% held by others
Solar 22.0 MW
Hydro 615.0 MW
Cogeneration 237.5 MW
Total 874.5MW /1
CK Power’s Contracted MW
CK Power is a power developer with diversified portfolio, strong pipeline and high growth potential
4
Business Overview : Well Diversified Portfolio
5
Nam Ngum 2 (NN2)
615 MW
(IOD March 2011;
COD January 2013)
Bangpa-in Cogeneration 1 (BIC1)
Power 117.5 MW
Steam 19.6 ton/hour
(COD June 2013)
Bangkhenchai (BKC)
8 MW (COD August 2012)
Nakorn RatchasimaSolar
(NRS)
6 MW (COD March 2012)
Hydro Power Plant
(Lao PDR)
> Nan Ngum river is an abundant
source of water
> Reliable 50 years historical water
level information from NN1 Hydro
Power Dam
1
Cogeneration Power Plants
(Bang Pa-in Industrial Estate, Ayudthaya)
> Strong existing industrial estate users
2 Solar Power Plants
(Nakorn Ratchasrima & Chiangrai)
> CKP’s solar plants are at high irradiation
locations in Thailand
> Low-risk flood areas
3
Chiangrai Solar (CRS)
8 MW (COD January 2013)
Bangpa-in Cogeneration 2
(BIC2)
Power 120 MW
Steam 20 ton/hour
(SCOD June 2017)
Note: IOD = Initial Operation Date
COD = Commercial Operation Date
SCOD = Schedule Operation Date
Business Overview : Leading AEC Player, First Thai Holding with overseas core asset
CK Power’s assets spread in Thailand with NN2 Power Plant in the Lao People’s Democratic Republic
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Defensive
Secured Revenue with PPAs and
Firm Off-takers
Growth
Energy Demand
Expanding Market
6
Business Overview : Defensive & Growth
7
Business Overview
Q3 / 2013 Highlights
Q3 / 2013 Performance
CKP Outlooks
Agenda
7
8
1. Revenue Boost
Hydro Power
NN2 experienced wet season and revenue more than forecasted , declared
Secondary and Excess Energy during Q3
Cogeneration
BIC 1 started to contribute revenue from their COD since June 28, 2013
Steam Revenue started since October 3,2013 expecting revenue impact in Q4/2103
Solar Power
In-line performance and revenue
2. MSCI Index
CKP was added to MSCI Index (Morgan Stanley Capital International Global for
Small Cap) to capture strong foreign investors , starting from November 27, 2013
Q3 / 2013 Highlights
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Business Overview
Q3 / 2013 Highlights
Q3 / 2013 Performance
CKP Outlooks
Agenda
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10
Q3/2013 Performance: Strong Growth in Revenue and Net Profit
32
575
371
24 27 8 1
178
-
100
200
300
400
500
600
700
27
548
373
5 13 4 1
178
-
100
200
300
400
500
600
700
SGA
Increase
Cost
Increase
Financial Cost
Increase
IA Amortization
Increase
Profit Sharing
Increase
SGA
Increase
Financial Cost
Increase
IA Amortization
Increase
Profit Sharing
Decrease
Revenue
Increase
Revenue
Increase
Cost
Increase
Q3 2012 Q3 2013
Q3 2013 Q2 2013
Million Baht
Million Baht
573% growth qoq due to excellent performance of NN2 Plus full-quarter profit realization of BIC
457% growth yoy due to excellent performance of NN2 plus full-quarter profit realization of BKC and BIC
NN2 : 150 MB
BIC : 408 MB
Others : 17 MB
NN2 : 144 MB
BIC : 408 MB
Others : (4) MB
BIC : 369 MB
Others : 2 MB
BIC : 369 MB
Others : 4 MB
The graphs show “Profit before FX attributable to equity holders of the Company” 10
11
Q3/2013 Performance: Stable income from secured contracts
-
500
1,000
1,500
2,000
2,500
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Hydro Solar Cogeneration
1,032 1,004 1,018
1,981
997
Million Baht
484
Consolidated
SEAN in
May 2012
Held a 38%
stake in SEAN
BKC’s COD in
Aug 2012
BIC’s COD in
June 2013
9-month Sales of Electricity 2012 = 1,481 MB
9-month Sales of Electricity 2013 = 4,003 MB
82%
18%
0%
Energy mix: Q3 2013
Hydro Power
Gas-firedCogeneration
Solar Power
66%
32%
2%
Sales mix: Q3 2013
Hydro Power
Gas-firedCogeneration
Solar Power
Jumpstart revenue with all power plants in operation (99% growth YoY and 95% growth QoQ)
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12
Q3/2013 Performance: Nam Ngum 2 (NN2)
330
335
340
345
350
355
360
365
370
375
380
0
50
100
150
200
250
300
350
400
450
500
Electricity Declaration and reservoir level
2012 Electricity 2013 Electricity
2012 Reservoir Level 2013 Reservoir Level
Another good year for NN2: Annual target is expected to be achieved, adding account sales for future use
GWh m.asl
9-month Electricity 2012 = 1,701 GWh
9-month Electricity 2013 = 1,981 GWh
Mangkhut
Storm
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Q3/2013 Performance: Bangkhenchai Solar (BKC)
Full revenue realization from BKC with significant improvement on unplanned outage
0
20
40
60
80
100
120
140
160
180
-
0.50
1.00
1.50
2.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Electricity Production and Irradiation
Electricity 2012 Electricity 2013
Solar Irradiation 2012 Solar Irradiation 2013
9-month Electricity 2012 = 1.97 GWh (COD in Aug 2012)
9-month Electricity 2013 = 10.68 GWh
GWh kWh/m2
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Q3/2013 Performance: Bang Pa-in Cogeneration (BIC1)
51
52
53
54
55
56
57
58
Jul Aug Sep
Electricity Production –EGAT (GWh)
310
315
320
325
330
165 170 175 180 185 190 195 200
Jul Aug Sep
Revenue –EGAT and Gas Price
EGAT - CP Gas Price
BIC 1 boosted electricity sales in Q3 and is speeding up efficiency
-
2
4
6
8
Jul Aug Sep
Electricity Production - IUs (GWh)
APCB Electronic Thailand Nippon Super Precision
2.00
2.50
3.00
3.50
4.00
-
10,000
20,000
30,000
Jul Aug Sep
Revenue- Ius and Selling price
APCB Electronic Thailand Nippon Super Precision
Avg IU Selling Price
9-month Electricity 2013 = 185 GWh
Million Baht
Million Baht
Baht/mmBTU
Baht
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15
Q3/2013 Performance: Cost Structure
Expenses Quarter 3 Change
Million Baht 2013 2012 +/- %
Cost of sales 978 417 561 135
Amortization of right 130 121 9 7
SG&A 97 65 32 49
Total 1,205 603 602 100
Non-cash expenses, including
depreciation and amortization,
represent almost 40% of total
operating expenses
47%
34%
4% 1%
11% 3%
Q3 2013 Gas
Depreciation
Royalty
ServiceAgreement
O&M
Others
0%
66% 8%
1%
25%
0% Q3 2012
Change in cost structure after BIC in operation
Without BIC With BIC
Cost of sales
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Q3/2013 Performance: Hedge Accounting
No Hedge Accounting Hedge Accounting
• Fluctuation in exchange rate leads to huge gain/loss
on exchange
• Most gain/loss on exchange is unrealized gain/loss
from valuation of USD loan
• No risk in term of cash flow as we use USD revenue
to pay back USD loan
• Cash flow Hedge using non-derivative instrument
• Revaluation of USD loan will be reserved as equity
(other comprehensive income) without affecting
profit/loss until loan repayment
• No more fluctuation due to revaluation of USD loan
as long as the scheme is effective
HEDGE ACCOUNTING
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Q3/2013 Performance: High cash profit margin
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
200
400
600
800
1,000
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Cash Profit
Cash Profit Margin
Million Baht Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
EBIT (10) 563 411 579 175 805
Add: Depreciation 183 280 283 277 280 341
Amortization 78 121 124 124 124 130
EBITDA 250 964 818 980 580 1,276
Less: Profit Sharing (19) (3) (1) (1) (5) (4)
Add: Loss (gain) on exchange 152 (153) (29) (192) 246 (9)
Cash profit 384 808 788 787 821 1,264
Cash profit margin 78% 80% 75% 77% 80% 63%
Cash Profit increased by 56% YoY and 54% QoQ
A slight drop in cash
profit margin is due to
different cost structure
of cogeneration
business from
hydropower and solar
power
Million Baht
17
18
Q3/2013 Performance: Leverage opportunity
Stable revenue allows more leverage opportunity to support projects in pipeline
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
DE Ratio - Consolidated DE Ratio - Standalone
Consolidation of BIC
IPO
IPO
0.27
0.05
-
5,000
10,000
15,000
20,000
25,000
Payables Short-termLoan
Other long-term
payables
Long-termLoan
Most liabilities are from
Subsidiaries’ project financing
- Self support
- Long-term
- Competitive interest rates
Million Baht Repayment in 2013 1,063 Long-term loan as of September 2013 23,646
Million Baht times
1.17
0.97
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Business Overview
Q3 / 2013 Highlights
Q3 / 2013 Performance
CKP Outlooks
Agenda
19
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Solid Project Pipeline
Domestic Outlooks
Overseas Outlooks
CKP’s Outlooks
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0
500
1000
1500
2000
2500
3000
3500
2012 2013 2017 2018 2019 2020 Other PotentialProjectsBIC1, CRS NN2, BKC, NRS BIC2
629 755 875
268 347 425
NB
1,035
492
XPCL 1/
2,320
974
8SPPs
COD 2/
CKP plans to apply for at least eight SPPs; the
company has been prepared with land, gas pipeline,
transmission line and technology readiness. Eight
SPPs are with total MW size of 960MW.
3,280
1,598
CKP, under CK Group has undisclosed power
projects under development in Laos and other power
sectors with total MW size over 1,000MW
4,280
2,598
Potential Renewable and
Others
100
Note: 1/ Assume CKP acquire CK’s 30% and BECL’s 7.5% stake in XPCL, acquisition price to be determined. Assume NB proceeds as planned to COD in 2018
2/ Assume CKP holds 100% in all eight SPPs projects to apply for PPA in the upcoming SPP application round
268 79 78 67
482 960
1,000
21
CKP’s Outlooks : Solid Project Pipeline
MW Equity
Total MW
MW Equity
22
Bangpa-in Cogeneration 2
• Adjacent to BIC 1 at Bangpa-In
Industrial Estate General
Description
Capacity
Current
Status
Off-Taker
• 120 MW of power
• 20ton/ hour of steam
Significant
Events
• Currently BIC2 is under pre-
construction phase
• Construction phase to start in 2014
with completion in 30 months
• September 13, 2011: PPA with the
EGAT signed with SCOD on June 1,
2017
• PPA with the EGAT of 90MW for 25
years
• Selling the rest of power and steam to
industrial estate users
CKP’s Outlooks : Developing Projects
22
23
Nam Bak
• Hydro Power Plants in Lao PDR
• Roller-Compacted-Concrete Dam
General
Description
Capacity
Current
Status
Off-taker
• 160 MW
• EDL
• NN2 is in the process of
discussion and negotiation on the
PPA with EdL and Concession
Agreement with the GOL.
Significant
Events
• On August 8, 2013, Project
Development Agreement was
signed
CKP’s Outlooks : Developing Projects
23
24
Xayaburi Power
• Located on Mekong River, Xayaburi
• Run-of-River barrage
Current
Status
Off-taker
• 1,285 MW
• 1,220 MW to the EGAT / 60 MW to EDL
• 17% construction progress at the end
of Q3 2013
Significant
Events
• CK founded XPCL and currently CK holds
30% and BECL holds 7.5% stakes
• Concession with Lao PDR as BOOT for 29
years from COD
• Construction started on March 15, 2012
Other notes
• CK and BECL have policy to sell their
equity stake in XPCL to CKP
General
Description
Capacity
CKP’s Outlooks : Developing Projects
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25
Renewable - Domestic 9,481
Neighboring Countries
6,572
Cogeneration 6,476
Combined Cycle 25,451
Thermal 7,150
Additional Capacity during 2012 – 2030
as per PDP 2010 Revision 3
Total Additional Capacity = 55,130 MW
3 2
70 8
26,355
52,256
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2012
2013
201
201
201
2017
2018
2019
2020
2021
2022
2023
202
202
202
2027
2028
2029
2030
Planned installed capacity Forecasted demand
Thailand’s energy demand will double by 2030
CKP’s Outlooks : Domestic Outlooks
Upcoming PDP 2013 is expected
Continuously focus on Cross-Border, Renewable Energy and Cogeneration
The proposals to develop new projects currently in the process
25
26
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2013 2014 2015 2016 2017 2018 2019 2020
Lao PDR Forecasted Demand (MW)
-
1,000
2,000
3,000
4,000
5,000
6,000
2013 2014 2015 2016 2017 2018 2019 2020
Myanmar Forecasted Demand (MW)
24.0 26.0
78.0 73.7
89.7 97.3 99.3 99.4 99.7 100.0
-
20.0
40.0
60.0
80.0
100.0
120.0
Electrification Ratio (%)
Lao PDR
• CKP’s proven track record in project development
• Potentials in transmitting to Thailand and within
Lao PDR
• Over 10,000 MW open for Hydro Power
developments Myanmar
• Exploring for Gas-Fired and Hydro Power
• Opportunities for improving Electrification Ratio
Cross Border Potentials
CKP’s Outlooks : Overseas Outlooks
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CK Power is the flagship power development company of CK Group:
• Diversified portfolio
• Stable stream of income
• Experienced management with development and
operational excellence
• Solid project pipeline
• High growth company
Key Takeaways
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Q&A
28
