Absolute Clean Energy PCL · SET:ACE
Absolute Clean Energy PCL — Absolute Clean Energy Public Company — Investor Presentation (August 2021)
73 slides from Absolute Clean Energy PCL's investor presentation, August 2021
Slide 1: Absolute Clean Energy Public Company Limited – Brief Company Information
Absolute Clean Energy Public Company Limited Brief Company Information August 2021 Ticker: ACE (SET100)
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form whole or part of any offer, invitation or solicitation by or on behalf of the Company for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any
Slide 3: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 3 Strictly Private & Confidential
Slide 4: Company Overview
Company Overview 4 Strictly Private & Confidential
Slide 5: Recognition & Index
Recognition & Index To accommodate the issuing of index to provide a benchmark of investment in the Stock Exchange of Thailand, the SET50 Index and the SET100 Index were launched. These indices are calculated, respectively, from the stock prices of the top 50 and 100 listed companies on SET. A list
Slide 6: Strictly Private & Confidential
6 Strictly Private & Confidential
Slide 7: Strictly Private & Confidential
7 Strictly Private & Confidential
Slide 8: Strictly Private & Confidential
8 Strictly Private & Confidential
Slide 9: Strictly Private & Confidential
9 Strictly Private & Confidential
Slide 10: Who is ACE?
Company Overview Who is ACE? 40 Years Strong foundation in Integrated Agricultural Industry “To be the world practical model of Clean energy powerplant, which is responsible for environment, society, and shareholders” “เป็ นโรงไฟฟ้าพลังงานสะอาดต้ นแบบของโลกที่มีความรับผิดชอบต่ อสิ่งแวดล้อม สังคม และ
Slide 11: ACE at a Glance
Company Overview ACE at a Glance Strong foundation in Abundant biomass feedstock Innovative Integrated Agricultural supported by communities surrounding Private Industry the power plants Power Producer for Absolute Clean Energy Ongoing Improvement with Innovative Technology Innovative Technology and
Slide 12: ACE at a Glance
Company Overview ACE at a Glance 35+1 Power Plants/1 Biomass (12+14+1)/1 (21 in Operations) 317.9 MW/1 439.67+9.9 MW/1 Innovative Private Power Producer for MSW (2) Absolute 12.0 MW Clean Energy Solar (6) 5.32 MW Co-generation (1) 114.35 MW Expected Installed Capacity 1 GW (Gross) +36% MW CAGR/2 Rem
Slide 13: ACE's Biomass power plant (27 power plants, 317.9 MW)
Company Overview ACE’s Biomass power plant (27 power plants, 317.9 MW)/1,/2,/3 ACP1 Ban Bueng ALCP1 Si Chiang Mai AAPP2 Chokchai ACP2 Phonthong ALCP2 Sirindhorn AAP1 Nam Phong 13 Remark: /1 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP share purchase proposal to
Slide 14: ACE's Biomass power plant (27 power plants, 317.9 MW)
Company Overview ACE’s Biomass power plant (27 power plants, 317.9 MW)/1,/2,/3 ACP3 Bo Ploy AAPP1 Tanee ABA1 Thoen AAE Muang Korat ABE Don Mon SBM Satuek 14 Remark: /1 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE /2 Capacity MW ▪ C
Slide 15: ACE's MSW power plant (2 power plants, 12 MW)
Company Overview ACE’s MSW power plant (2 power plants, 12 MW)/1 MSW Khon Kaen Remark: /1 Capacity MW MSW Krabi 15 Strictly Private & Confidential 15
Slide 16: ACE's Co-generation power plant (1 power plant)
Company Overview ACE’s Co-generation power plant (1 power plant, 114.35 MW)/1 AAA Chachoengsao Remark: /1 Capacity MW 16 Strictly Private & Confidential 16
Slide 17: ACE's Solar power plant (6 power plants, 5.32 MW)
Company Overview ACE’s Solar power plant (6 power plants, 5.32 MW)/1 FLOATING SOLAR 1 Project SOLAR ROOFTOP 1 Project SOLAR ROOFTOP 1 Project Chok Chai, Nakhon Ratchasima Sri racha, Chonburi (Extension), Sri racha, Chonburi SOLAR ROOFTOP 2 Project SOLAR ROOFTOP 3 Project Chok Chai, Nakhon Ratchasima
Slide 18: ACE at a Glance
Company Overview ACE at a Glance >90% Capacity Factor/1 Feedstock Burn Capability Biomass: 98% ACE: Up to 65% moisture Innovative MSW: 96% content/2 of mixed Cogeneration: 82% fuel Private Others: Up to 40% Power Producer Unit : MW for Absolute Clean 76 Energy 196 Largest Portion Bidding Winner in t
Slide 19: ACE's Key Development Milestones
ACE’s Key Development Milestones “To be the world practical model of Clean energy powerplant, which is responsible for environment, society, and shareholders” 2024: Expected to secure an installed capacity 2017: 2019: of 1,000 PPA MW 2012: 2016: Listed in Stock and becomes Won and secured 4 First CO
Slide 20: Overview of ACE's Portfolio
Overview of ACE’s Portfolio A ACE Business Portfolio in Thailand Power Plant Others Power Type Biomass Co-generation MSW Solar Waste Landfill ACE’s Holding Stake in 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Projects COD: 22 Existing Pipeline: 15/1 + Pipeline 12+14+1/1 1+0 2+0 6+0 1+0 Projects Total:
Slide 21: Well-Balanced Portfolio with Diversified Locations
Well-Balanced Portfolio with Diversified Locations Installed / Assets Overview Type Equity MW PPA MW Location COD / SCOD Date Status ▪ Operating projects 1 VSPP - Biomass 9.9 8 Chonburi 24/04/2012 ▪ Under development projects and Pending for development projects 2 VSPP - Biomass 9.9 8 Khonkaen 02/05
Slide 22: ACE's Group Structure
Company Overview ACE’s Group Structure (Holding Company) COD Under Development + Pending for Development 100% Asia Clean Energy (“ASCE”) (Holding Company) Operating Company 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Advance Clean Alliance Clean Advance Agro Advance Asia Advance Bio
Slide 23: ACE's Board of Directors
Company Overview ACE’s Board of Directors MONTON SUDPRASERT, Independent Director Chairman of the Board of Directors • Experience: Department of public works and town & country planning – Director General • Experience: The project of urban planning to prevent and alleviate flood crisis - Advisor and
Slide 24: ACE's Strategy, Core Value & Competency
Company Overview ACE’s Strategy, Core Value & Competency ACE’s Core Competency ACE’s Core Value Operation สร ้างประสิทธิภาพ ส่งเสริมพัฒนา Sustainable ทีมงาน สะสาง growth สร ้างสรรค ์ความ ปลอดภัย 9ส สะดวก Research & Innovation for สร ้างนิ สย ั Development production Efficiency สะอาด Improvement ใส่ใ
Slide 25: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 25 Strictly Private & Confidential
Slide 26: Industry Overview and Growth Potential
Industry Overview and Growth Potential 26 Strictly Private & Confidential
Slide 27: Electricity Consumption, Resilience Growth Throughout Country Crisis
Industry Overview and Growth Potential Electricity Consumption, Resilience Growth Throughout Country Crisis Electricity consumption is gradually growing amid the country’s instability World Electricity Consumption Unit: tWh 25,000 20,000 15,000 10,000 5,000 - 2008 2009 2010 2011 2012 2013 2014 2015
Slide 28: Global and Domestic Trend to Support Renewable Energy
Industry Overview and Growth Potential Global and Domestic Trend to Support Renewable Energy Paris Agreement: Around 88% of the world have ratified or acceded to the Agreement. Thailand government has ratified the agreement. (as of 21 Jan 2021) Ratified Signed Rejoining World Zero Carbon: Government
Slide 29: Electricity Consumption Growth Rate
Electricity Consumption Growth Rate Growth: 17.90% Growth: 10.50% (2012-2020) (2019-2030) Cambodia Laos Growth: 19.80% Growth: 12.00% (2010-2035) (2018-2030) Myanmar Vietnam 29 Strictly Private & Confidential
Slide 30: International and Domestic Trend to promote and support Renewable Energy
Industry Overview and Growth Potential International and Domestic Trend to promote and support Renewable Energy Paris Agreement Set a global goal to reach zero carbon emissions in the second half of the century Thailand Constitution of the Kingdom of Reformation Plan of the Country PDP 2018 Proposal
Slide 31: Constitution of the Kingdom of Thailand, National Strategy and Government Commitment
Industry Overview and Growth Potential Constitution of the Kingdom of Thailand, 20 years National Strategy, Country Reformation and Government Commitment to Support Renewable Energy According to Constitution of the Kingdom of Thailand, Section 6 Number 5: Thailand will develop and support the produc
Slide 32: Total Societal Impact (TSI) and ESG
Industry Overview and Growth Potential Total Societal Impact(TSI) and Environmental, Social and Governance (ESG) Biomass Power plant Contribute to the Paris Agreement Decreasing greenhouse gas emission. Future Potential To provide base-load to grid in place of conventional energy • Saves government’
Slide 33: Renewable Energy Contribute Largest Portion (37%) of Increased Capacity
Industry Overview and Growth Potential Renewable Energy Contribute Largest Portion (37%) of Increased Capacity According to the Power Development Plan (PDP) 2018 hearing, Renewable Energy is targeted to contribute the largest portion, or 37%, of the total new increased capacity by 2037. Potential MW
Slide 34: Renewable Energy Contribute Largest Portion (37%) of Increased Capacity
Industry Overview and Growth Potential Renewable Energy Contribute Largest Portion (37%) of Increased Capacity According to the Power Development Plan (PDP) 2018 hearing, Renewable Energy is targeted to contribute the largest portion, or 37%, of the total new increased capacity by 2037. Potential MW
Slide 35: Renewable Energy will provide 46% of Thailand's Electricity by 2037
Industry Overview and Growth Potential Renewable Energy will provide 46% of Thailand’s Electricity by 2037 Renewable energy portion will move from 26% in 2018 to 46% in 2037 % Electricity Capacity by Source of Total Capacity for 2018 and 2037 Electricity Capacity of Each Renewable Source for 2017 an
Slide 36: Biomass: The largest renewable energy contributor in Thailand
Industry Overview and Growth Potential Biomass : The largest renewable energy contributor in Thailand Looking at GWh contribution to grid, Biomass is the largest contributor to renewable energy growth in Thailand Electricity contribution/1 of Each Renewable Source of from 2017 to 2037/2 Unit: GWh 45
Slide 37: ACE's Historical, Current and Future Growth
Industry Overview and Growth Potential ACE’s Historical, Current and Future Growth Continuous growth with existing PPA along with future potential growth supported by favorable government renewable energy policy Existing and Pipeline of Company’s MW/1,/2 Existing, Under-Development and Pending for D
Slide 38: Future Growth
Industry Overview and Growth Potential Future Growth Continuous growth with existing PPA along with future potential growth supported by favorable government renewable energy policy Existing and Pipeline of Company’s MW/1,/2 2025 – 2037 Contract Capacity MW according to PDP 2018 Biomass Future Growt
Slide 39: Proven by Recent Bidding
Industry Overview and Growth Potential Proven by Recent Bidding Won the largest portion of MW in the 2017 SPP Hybrid Bidding (Renewable) 2017 Biomass Bidding Potential Upcoming Community Biomass/Biogas PPA/1 Largest bidding winner out of 42 candidates in the 2017 SPP Hybrid Bidding (Renewable) Unit
Slide 40: Strictly Private & Confidential
40 Strictly Private & Confidential
Slide 41: ACE's Core Value Represent Competitive Advantage to Secure New PPAs
Industry Overview and Growth Potential ACE’s 3 Core Value Represent Competitive Advantage to Secure New PPAs 1 Advance Technology ✓ Lower plant heat rate = decrease fuel consumption by up to 30% R&D ✓ Artificial Intelligence, IoTs and Big ✓ Fast growing and high yield fuel data for cost control and
Slide 42: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 42 Strictly Private & Confidential 42
Slide 43: Company Core Competitive Advantages
Company Core Competitive Advantages 43 Strictly Private & Confidential
Slide 44: Core Competitive Advantages
Company Core Competitive Advantages 1 Thailand’s Leading Integrated Power Producer with highest growth potential /1 2 Proven Operational Capabilities 3 Secured Cash Flow Supported by PPA with EGAT/PEA 44 Remark: /1 Estimated approximate MW growth during 2019-2022; Estimated MW growth of peers based
Slide 45: Target to Secure 1 GW Installed Capacity within 2024
Company Core Competitive Advantages– Leading Integrated Renewable Power Producer Target to Secure 1 GW Installed Capacity within 2024 2019 2022/1,/2 2024 COD Capacity : 212.18 MW COD Capacity : 449.57 MW COD Capacity : 449.57 +[x] MW COD + Secure Pipeline : 421.37 MW /1 COD + Secure Pipeline : 449.2
Slide 46: Leading Biomass Power Producer in Thailand
Company Core Competitive Advantages – Proven Operational Capabilities Leading Biomass Power Producer in Thailand ACE’s in-house R&D capabilities results in feedstock and O&M cost reduction with the target to reduce feedstock cost approx. 5% – 15% for current plant and 24.7%-27.8% on top for pipeline
Slide 47: Leading Biomass Power Producer in Thailand
Company Core Competitive Advantages – Proven Operational Capabilities Leading Biomass Power Producer in Thailand ACE’s in-house R&D capabilities results in feedstock and O&M cost reduction with the targetto reduce feedstock cost approx. 5% – 15% for current plant and 24.7%-27.8% on top for pipeline
Slide 48: Leading Biomass Power Producer in Thailand
Company Core Competitive Advantages – Proven Operational Capabilities Leading Biomass Power Producer in Thailand ACE’s in-house R&D capabilities results in feedstock and O&M cost reductions with the target to reduce feedstock cost approx. 5% – 15% for operating power plants and 24.7%-27.8% on top fo
Slide 49: Most Efficient MSW Power Producer in Thailand
Company Core Competitive Advantages – Proven Operational Capabilities Most Efficient Municipal Solid Waste (MSW) Power Producer in Thailand ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Pro
Slide 50: Ministers visited KK MSW Power Plant
Company Core Competitive Advantages – Proven Operational Capabilities Thailand’ Minister of Interior and Minister of Energy visited KK MSW Power plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced Intern
Slide 51: Energy Regulatory Commission visit KK MSW Power Plant
Company Core Competitive Advantages – Proven Operational Capabilities Energy Regulatory Commission visit KK MSW Power Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Pr
Slide 52: Sri Lanka Supreme Ambassadors visit KK MSW Power Plant
Company Core Competitive Advantages – Proven Operational Capabilities Sri Lanka’ Supreme Ambassadors visit KK MSW Power Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run
Slide 53: Bangladesh's Minister visit KK MSW Power Plant
Company Core Competitive Advantages – Proven Operational Capabilities Bangladesh’s Minister visit KK MSW Power Plant ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven Tr
Slide 54: Khon Kaen MSW Power Plant visited by government agencies
Company Core Competitive Advantages – Proven Operational Capabilities Khon Kaen MSW Power Plant visited by numerous Regional Municipal and government agencies Environmental Inspection Division Team Indonesia Vice President Deligation visited Director-General of the Department of Local visited MSW KK
Slide 55: Khon Kaen MSW Power Plant visited by government agencies
Company Core Competitive Advantages – Proven Operational Capabilities Khon Kaen MSW Power Plant visited by numerous Regional Municipal and government agencies Phuket Municipal visited MSW KK powerplant Udonthani Municipal visited MSW KK powerplant Executive Committee of local administrative organiza
Slide 56: Khon Kaen MSW Power Plant visited by government agencies
Company Core Competitive Advantages – Proven Operational Capabilities Khon Kaen MSW Power Plant visited by numerous Regional Municipal and government agencies Management team from Maha Sarakham Municipal Board of Directors, Ministry of Energy and Ministry of Local Local government leaders from Songk
Slide 57: Krabi MSW Power Plant official opening ceremony
Company Core Competitive Advantages – Proven Operational Capabilities Krabi MSW Power Plant official opening ceremony 57 Strictly Private & Confidential 57
Slide 58: Krabi MSW Power Plants official opening ceremony
Company Core Competitive Advantages – Proven Operational Capabilities Krabi MSW Power Plants official opening ceremony 58 Strictly Private & Confidential 58
Slide 59: Most Efficient MSW Power Producer in Thailand
Company Core Competitive Advantages – Proven Operational Capabilities Most Efficient MSW Power Producer in Thailand ACE’s early engagement in MSW, reputable bidding track record and renowned expertise will secure the upcoming MSW bidding opportunity Advanced International Professional Run Proven Tra
Slide 60: Competitive SPP Co-Generation Power Producer
Company Core Competitive Advantages – Proven Operational Capabilities Competitive SPP Co-Generation Power Producer Defensive scheme of Co-Generation Power Plant would help balance risk scheme of company’s powerplant portfolio Advanced Continuing Professional Run Proven Track Record Upside Potential
Slide 61: Competitive SPP Co-Generation Power Producer
Company Core Competitive Advantages – Proven Operational Capabilities Competitive SPP Co-Generation Power Producer Defensive scheme of Co-Generation Power Plant would help balance risk scheme of company’s powerplant portfolio Advanced Continuing Professional Run Proven Track Record Upside Potential
Slide 62: Secured Cash Flow Supported by PPA with EGAT/PEA
Company Core Competitive Advantages – Secure Cash Flow Supported by PPAs with EGAT/PEA Secured Cash Flow Supported by PPA with EGAT/PEA Reliable revenue source with high efficiency and controlled cost can guarantee cash flow to the company Biomass MSW Co-Generation 8% 10% Industrial Users Industrial
Slide 63: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 63 Strictly Private & Confidential
Slide 64: Financial Highlights
Financial Highlights 64 Strictly Private & Confidential
Slide 65: Robust Revenue Growth with Diversified Revenue Mix
Financial Highlights Robust Revenue Growth with Diversified Revenue Mix Revenue/1 Revenue Breakdown by Customer 1% 6,000 4,833 4,951 4,988 4,500 3,000 99% 1,386 1,500 2020 0 Electricity sales to EGAT and PEA 2018 2019 2020 Q2'2021 Sales to IUs Sales Revenue Revenue Breakdown by Type of Power Plant K
Slide 66: Robust Financial Performance
Financial Highlights Robust Financial Performance Financial track record shows strong and consistent revenue, EBITDA and net profit growth with continuous margin expansion. Gross Profit and Gross Profit margin/1 EBITDA/2 and EBITDA margin/1 (THB mm) (THB mm) 2,500 35.9% 40% 2,500 80% 33.6% 2,233 32.
Slide 67: Robust Financial Performance
Financial Highlights Robust Financial Performance Financial track record shows strong and consistent revenue, EBITDA and net profit growth with continuous margin expansion. Net Profit and Profit margin/1 Adjusted Net Profit/2 and Net Profit Margin/1 (THB mm) (THB mm) 1,508 1,500 50% 1,500 60% 1,358
Slide 68: ACE Outstanding Debt and Leverage Ratio
ACE Outstanding Debt and Leverage Ratio ACE’s Leverage Ratio Unit: THB mln December 31 2019 2020 Q2’2021 Current Interest-bearing debt 1,084 842 939 Non-Current Interest-bearing debt 1,911 3,106 3,854 Total interest-bearing debt 2,995 3,948 4,793 Cash equivalent and restricted cash 571 760 1,098 Net
Slide 69: Profitability Ratio
Financial Highlights Profitability Ratio Return on Asset Return on Equity 21.4% 20.6% 14.7% 13.2% 12.4% 12.5% 12.5% 11.8% 9.8% 10.4% 10.3% 7.9% 8.5% 5.2% 5.8% 3.9% 2018 2019 2020 Q2'2021 2018 2019 2020 Q2'2021 Return on Asset Return on Asset (excluding lease) Return on Equity Return on Fixed Asset R
Slide 70: Table of Contents
Table of Contents I Company Overview II Industry Overview and Growth Potential III Company Core Competitive Advantages IV Financial Highlights V Key Takeaways 70 Strictly Private & Confidential 70
Slide 71: Key Takeaways
Key Takeaways 71 Strictly Private & Confidential
Slide 72: ACE's Key Strengths and Opportunities
Key Takeaways ACE’s Key Strengths and Opportunities 1 Thailand’s Leading Integrated Power Producer with Highest Growth Potential ▪ Largest and fast growing Biomass Power Producer supported by PPA with PEA in Thailand ▪ No. 1 Renewable Power Producer in Thailand in terms of Equity MW Growth 2 World M
Slide 73: Thank You
Thank You For further inquiry www.ace-energy.co.th Email : [email protected]
Absolute Clean Energy Public Company — Investor Presentation (August 2021) on 6ix