absolute clean energy public company limited€¦ · 20/05/2021 · 12+14+1/1 1+02+0 6+0...

Absolute Clean Energy Public Company Limited

Analyst Meeting Q1’21

Ticker: ACE

2 Strictly Private & Confidential

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Disclaimer


Operating performance

Financial Highlights

Business UpdatesI

III

Table of Contents for Analyst Presentation

II

Business Updates


Key Event highlights in Q1’21 & Project in pipeline update

Projects Under Construction & Project Progress

Q1’21 Key Highlights & Events after the reporting date

VSPP Klong Klung Project 9.9 MW, Kampangphet

Q1’2021 Status/1

Expected COD within 2021

65%

• 25 Feb 2021: The BOD approved to propose the AGM 2021 to approve the dividend payment of 2020 at the rate of THB 0.018

per share and the dividend payment will be made on 13 May 21.

• 25 Feb 2021: COD Solar Rooftop in Nakhon Ratchasima province with total install capacity 0.24 MW .

• 19 Mar 2021: SPP Hybrid (BPP2 & ACE Solar1 ) in Nakhon Si Thammarat with total installed capacity 50 MW have been signed PPA with EGAT.

• 29 Mar 2021: Submitted the electronic biddings for the community power plant projects to PEA.

• 31 Mar 2021: COD Floating Solar in Nakhon Ratchasima province with total install capacity 1.52 MW .

Remark: /1 Status as of 15 May 21 is 72%

Krabi MSW Power Plant

Strictly Private & Confidential9

85.2

209.5 210.5 212.2

245.91449.57 449.57 449.57

550

2016 2017 2018 2019 2020 2021 2022 2023 2024

257.57

“To be the world practical model of Clean energy powerplant, which is responsible for environment, society, and shareholders”

1979/1 (40 years

ago): Shaiyo Triple

A Group

Board of directors

have experienced to

lead rice, corns,

cassavas and

woodchips producer

and exporter, has

expertise in

agriculture industry

and R&D in the fast

growing tree and

intrigued in exploring

the energy sector.

2016:

First COD of VSPP

“ALCP” MSW Power

Plant

2015:

Established

Absolute Clean

Energy (ACE) as a

Holding Company

with initial paid-up

capital of THB 0.5

mm.

2017:

First COD of SPP

“AAA” Cogeneration

Power Plant

2017:

Won and secured 4

SPP Hybrid Bidding

of total 93 capacity

MW

2018:

First COD of VSPP

Solar Rooftop

2012:

First COD of VSPP

“ACP1” Biomass

Power Plant

2024:

Expected to secure

an installed capacity

of 1,000 PPA MW

and becomes

Thailand’s largest

biomass power

producer

2022:

Estimated to

COD all

projects/2(449.57

MW)/3

Unit: MW

ACE’s Key Development Milestones

Remark : /1 http://www.saaa.co.th/SAA_ENG/home.php

/2 Estimated timeline: Currently, Arbitration result states that PEA has to return PPA to ACE and with the assumption that normally power project’s

construction period is approx. 2 years

/3 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE

ACE’s Total Capacity MW/3 over time

2019:

Listed in Stock

Exchange of

Thailand

A ACE Business Portfolio in Thailand

Power Type

Biomass Co-generation MSW Solar Waste Landfill

ACE’s Holding

Stake in

Projects

100.0% 100.0% 100.0% 100.0% 100.0%

Existing

+ Pipeline

Projects

12+14+1/1 1+0 2+0 6+0 1+0

Capacity MW

(Total Capacity

MW)

PPA MW to

Government &

IU

(Total PPA

MW)

116

201.9114.35 5.3212.0

Remark: /1 Including APP’s capacity MW of 9.9. Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE

/2 Electricity Sale Agreement (ESA) with IU

Total: 317.9/1 Total: 114.35 Total: 12.0

Total: 5.32/2

94.5164.31 90 8.9

Total: 258.81/1Total: 90 Total: 8.9

Total: 5.32

Existing Under Development + Pending for Development

Overview of ACE’s Portfolio

/1

/1

COD: 247.67

Pipeline: 201.90

Total: 449.57

COD: 22

Pipeline: 15/1

Total: 37/1

COD: 198.72

Pipeline: 164.31

Total: 363.03

100.0%

Power Plant Others

5.32

Assets Overview

Surin:

• No. 3

Khonkaen:

• No. 2 and 9

Roi-et:

• No. 5

Nongkhai:

• No. 6

Lampang:

• No. 7

Ubonratchathani:

• No. 8

Chachoengsao:

• No. 10

Kanchanaburi:

• No. 11

Kampangphet:

• No. 27, 28

• SPP – Hybrid

• No. 23-26

Srisaket:

• No. 36

Supanburi:

• No. 29

Nakornpathom:

• No. 30

Amnatcharoen:

• No. 33

Lopburi:

• No. 34

Krabi:

• No. 19

Pracheenburi:

• No. 35

Ranong:

• SPP – Biomass

• No. 23-26

▪ Operating projects

▪ Under development projects and

Pending for development projects

Nakhon Si Thammarat:

• 2 SPP – Biomass

• No. 23-26COD Biomass

SCOD Biomass

COD Cogeneration

COD MSW

SCOD MSW

SCOD 4 SPP-Hybrid

Solar

Well-Balanced Portfolio with Diversified Locations

Source: Company information as of Dec. 2020

Remark: /1 Including APP’s capacity MW of 9.9, Currently, APP’s shareholders sent LOI for APP share purchase proposal to ACE /2 Estimated timeline: Currently, Arbitration result states that PEA has to return PPA to ACE and with the assumption that normally power project’s construction period is approx. 2 years

Chonburi:

• No. 1, 12, 14, 32, 37

Samut Sakhon:

• No.15

Nakhon Ratchasima:

• No. 4, 13 ,18, 21 ,22,31

TypeInstalled /

Equity MWPPA MW Location COD / SCOD Date Status

1 VSPP - Biomass 9.9 8 Chonburi 4/24/2012

2 VSPP - Biomass 9.9 8 Khonkaen 5/2/2012

3 VSPP – Biomass 9.9 8 Surin 10/30/2012

4 VSPP – Biomass 9.9 8 Nakhon Ratchasima 1/16/2013

5 VSPP – Biomass 9.9 8 Roi-et 6/4/2013

6 VSPP – Biomass 9.9 8 Nongkhai 12/26/2013

7 VSPP – Biomass 9.9 8 Lampang 7/9/2014

8 VSPP – Biomass 9.9 8 Ubonratchathani 8/14/2015

9 VSPP – MSW 6 4.5 Khonkaen 11/29/2016

10 SPP - Cogen 114.35 90 Chachoengsao 2/10/2017

11 VSPP – Biomass 9.9 8 Kanchanaburi 8/16/2017

12 VSPP – Solar Rooftop 1 1 Chonburi 11/20/2018

13 VSPP – Solar Rooftop 0.73 0.73 Nakhon Ratchasima 2/22/2019

14 1 Solar Rooftop 1 1 Chonburi 9/27/2019

15 1 Solar Rooftop 0.83 0.83 Samut Sakhon 1/5/2020

16 VSPP-Biomass 7.5 6.5 Buriram (SBM) 24/1/2006

17 VSPP-Biomass 9.5 8 Buriram (ABE) 6/2/2008

18 VSPP-Biomass 9.9 8 Nakhon Ratchasima (AAE) 11/10/2011

19 VSPP – MSW 6 4.4 Krabi 28/12/2020

20 Waste Landfill N/A N/A Udonthani 5/1/2021

21 Floating Solar 1.515 1.515 Nakhon Ratchasima 31/3/21

22 1 Solar Rooftop 0.24 0.24 Nakhon Ratchasima 25/2/21

23-26 3 SPP – Hybrids

1 SPP – Hybrid93 76.31 Within 2022

PPA signed 3

Pojects

EIA process 1

project

27 VSPP – Biomass 9.9 8 Kampangphet Within 2021 Under Construction

28 VSPP – Biomass 9.9 8 Kampangphet Within 2022

29 VSPP – Biomass 9.9 8 Supanburi Within 2022

30 VSPP - Biomass 9.9 8 Nakornpathom Within 2022

31 VSPP - Biomass 9.9 8 Nakhon Ratchasima Within 2022

32 VSPP - Biomass 9.9 8 Chonburi Within 2022

33 VSPP - Biomass 9.9 8 Amnatcharoen Within 2022

34 VSPP - Biomass 9.9 8 Lopburi Within 2022

35 VSPP - Biomass 9.9 8 Pracheenburi Within 2022

36 VSPP – Biomass 9.9 8 Srisaket Within 2022Under consideration of

Administrative Court

37 VSPP – Biomass/1 9.9 8 Chonburi Within 2022

Under negotiation

SCOD/2

Total 37 449.57 363.03

Under

Development

and pending

for

development

(15 projects)

Existing

Projects

(22 Projects)

Under negotiation

SCOD/2

COD

2

1

Buriram:

• No. 16,17

Udonthani:

• No. 20

Operating Performance

13

ACE’s Biomass power plants

ACP1 Ban Bueng

ACP2 Phonthong

ALCP1 Si Chiang Mai

ALCP2 Sirindhorn

AAPP2 Chokchai

AAP1 Nam Phong


ACP3 Bo Ploy ABA1 ThoenAAPP1 Tanee

AAE Muang Korat (UKB) ABE Don Mon (UAB)

ACE’s Biomass power plants

SBM Muang Buriram


ACE’s Biomass Operating Performance (9 Projects)

Plant Performance (9 Projects) Gross Profit and Margin

Availability Factor*

Capacity Factor**

Unit : THB mln

Remark:

* Availability Factor = Total operating hours/(Days*24 hours)** Capacity Factor = Electricity Unit sold /(Total operating hours*Total selling

Capacity)

Key Observation

• Gross Profit and Gross Profit Margin

▪ QoQ : -15.0% in Gross Profit and -2.9% in Gross Profit Margin

▪ YoY : -4.9% in Gross Profit and -0.5% in Gross Profit Margin

93% 92%96% 94%

0%

20%

40%

60%

80%

100%

2018 2019 2020 Q1'2021

98% 98% 99% 99%

0%

20%

40%

60%

80%

100%

2018 2019 2020 Q1'2021

913

1,079

244 273 232

35.1%38.8%

36.3%

38.7%

35.8%

0

200

400

600

800

1,000

1,200

2019 2020 Q1'2020 Q4'2020 Q1'2021

Gross Profit %GPM


Availability Factor / Capacity Factor

ACE’s Biomass Operating Performance (3 acquisitioned projects)

AAE (UKB) Plant Performance

SBM Plant Performance


ABE (UAB) Plant Performance


Key Observation

• AAE, ABE and SBM have been transferred to ACE since 21 Aug 2020.

• SBM and ABE recommenced its operation on 15 Dec 2020 and 27 Dec

2020 respectively.

• These 3 power plants have not run at full capacity yet due to the shutdowns

for machinery and performance improvement that occurred from time to

time.

85%

96%

0%

20%

40%

60%

80%

100%

Q1'2021Availability Factor Capacity Factor

58%

88%

0%

20%

40%

60%

80%

100%

Q1'2021

Availability Factor Capacity Factor

57%

98%

0%

20%

40%

60%

80%

100%

Q1'2021

Availability Factor Capacity Factor

Remark:

* Availability Factor = Total operating hours/(Days*24 hours)** Capacity Factor = Electricity Unit sold /(Total operating hours*Total selling

Capacity)

17

ACE’s MSW Power Plants

MSW Khon Kaen

MSW Krabi


136

144

44 37

62

50.0%52.4%

61.1%

51.5% 50.9%

0

40

80

120

160

2019 2020 Q1'2020 Q4'2020 Q1'2021

Gross Profit %GPM

ACE’s MSW Operating Performance

Plant Performance (2 Projects) Gross Profit and Margin

Availability Factor

Capacity Factor

Unit : THB mln

Key Observation

• Quarterly Gross Profit and Gross Profit Margin

▪ QoQ : +67.6% in Gross Profit and -0.6% in Gross Profit Margin

▪ YoY : +40.9% in Gross Profit and -10.2% in Gross Profit Margin

92% 95% 94% 96%

0%

20%

40%

60%

80%

100%

2018 2019 2020 Q1'2021

94% 96% 97% 99%

0%

20%

40%

60%

80%

100%

2018 2019 2020 Q1'2021

• The difference of tariff schemes between these 2 projects, i.e., Adder vs.

FiT , has affected the average GPM


ACE’s Co-generation Power Plant

AAA Chachoengsao


ACE’s Co-Gen Operating Performance

Plant Performance (1 Project) Gross Profit and Margin

Availability Factor

Capacity Factor

Unit : THB mln

Key Observation

• Quarterly Gross Profit and Gross Profit Margin

▪ QoQ : +15.1% in Gross Profit and +1.4% in Gross Profit Margin

mainly from increase in Co-Gen sale compared to Q4/20.

▪ YoY : -1.4% in Gross Profit but +2.9% in Gross Profit Margin

Though slight decrease in GP, GPM still increased as a result of cost

saving by using in-house O&M service.

98% 99% 97% 99%

0%

20%

40%

60%

80%

100%

2018 2019 2020 Q1'2021

80% 82%76% 78%

0%

20%

40%

60%

80%

100%

2018 2019 2020 Q1'2021

577 547

139 119 137

27.9%

30.2% 29.5%31.0%

32.4%

0

200

400

600

800

2019 2020 Q1'2020 Q4'2020 Q1'2021

Gross Profit %GPM

Financial Highlights


428 454 439

35.3%

36.6%33.4%

0

200

400

600

800

Q1'2020 Q4'2020 Q1'2021

Total Gross Profit Total %GPM

1,217 1,243 1,314

173

2 2

0

200

400

600

800

1,000

1,200

1,400

1,600

Q1'2020 Q4'2020 Q1'2021

Sales revenue Other revenue

Q1’21 Financial Highlight P&L

Revenue/1 Gross Profit and Margin

Remark: 1/ Exclude construction revenue

2/ Exclude GP from 3 UWC Biomass Power Plants.

Unit : THB mlnUnit : THB mln

1,2451,390 1,316

+8.0% YoY

+5.7% QoQ

Total Revenue

Total Revenue in Q1’21 was THB 1,316 mln

• QoQ : +5.7% results from increase in sale revenue.

• YoY : -5.3% results from significant decrease in other revenue since there

was an extra item, insurance claim amount of THB 172 mln. in Q1/20.

Gross Profit Margin in Q1’21 was 33.4%

• QoQ : -3.2% and YoY : -1.9% mainly from decrease in %GPM of

Biomass power plants.

Sale Revenue in Q1’21 was THB 1,314 mln

• QoQ : +5.7% results from full-quartered revenue recognition of MSW Krabi

power plant and 3 acquired Biomass Power plants and also increase in Co-

Gen sale QoQ

• YoY : +8.0% results from significant increase of sale revenue in Q1/21

due to the reasons as mentioned above.

Gross Profit in Q1’21 was THB 439 mln

• QoQ : -3.3% from GP of Biomass decreased by THB 57.1 mln

GP of MSW increased by THB 24.4 mln

GP of Co-Gen increased by THB 17.4 mln

• YoY : +2.6% from GP of Biomass decreased by THB 4.7 mln

GP of MSW increased by THB 18 mln

GP of Co-Gen decreased by THB 2.3 mln

+2.6%YoY

-3.3% QoQ

36.2%/2

% GPM (excl.

UWC Biomass)

37.0%/2


4,951 4,988

1,217 1,243 1,314

33 179

1732 2

0

1,000

2,000

3,000

4,000

5,000

6,000

2019 2020 Q1'2020 Q4'2020 Q1'2021

Sales revenue Other revenue

Financial Highlight – Revenue/1

Remark: 1/ Exclude construction revenue

Total Revenue

5,1674,984

1,390 1,245 1,316

Unit : THB mln


1,626 1,791

428 454 439

32.8%

35.9% 35.3%

36.6% 33.4%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2019 2020 Q1'2020 Q4'2020 Q1'2021

Total Gross Profit Total %GPM

Financial Highlight – Q1’21 Gross Profit and Gross Profit Margin

Unit : THB mln

36.2%/1

Remark: 1/Exclude GP from 3 UWC Biomass Power Plants.

% GPM (excl. UWC Biomass)

37.0%/1


303 327 306

291

-73

54

24.9%

26.3%23.3%

-100

0

100

200

300

400

500

600

700

Q1'2020 Q4'2020 Q1'2021

Profit from ordinary activities Extraordinary items %Core Margin

656

501 508

53.9%

40.3% 38.7%

0

200

400

600

800

Q1'2020 Q4'2020 Q1'2021

EBITDA %EBITDA Margin

Q1’21 Financial Highlight P&L

Core Profit/ Net Profit

Unit : THB mln

EBITDA and EBITDA Margin

Unit : THB mln

594

254

EBITDA

+1.4% QoQ

Core Profit in Q1’21 was THB 306 mln

• QoQ : -6.4% from decrease in GP of biomass power plants and increase in

finance cost.

• YoY : +1% from increase in sales revenue from 3 acquired power plants and

MSW Krabi

EBITDA in Q1’21 was THB 508 mln

• QoQ : +1.4% from increase in sale from newly operated power

plants.

• YoY : -22.6% from an extra item, insurance claim amount of THB

172 mln. recorded in Q1/20.

Net Profit in Q1’21 was THB 360 mln

• QoQ :+41.7% from increase in sale of goods and service and gain from FX

• YoY : -39.3 % from an extra item, insurance claim amount of THB 172 mln.

recorded in Q1/20.

Core profit

+1% YoY

Core profit

-6.4% QoQ

EBITDA

-22.6% YoY

Remark: 1/ Exclude Core Margin from 3 UWC Biomass Power Plants .

2/ Exclude EBITDA from 3 UWC Biomass Power Plants.

40.6%/2

Net profit

-39.3% YoYNet profit

+41.7% QoQ

Net Profit

41.6%/2

% EBITDA Margin (excl.

UWC Biomass)

28.0%/1

% Core Margin (excl. UWC Biomass)

360

25.5%/1


1,865

2,233

656 501 508

37.7%

44.8%

53.9%

40.3%38.7%

0

500

1,000

1,500

2,000

2,500

2019 2020 Q1'2020 Q4'2020 Q1'2021

EBITDA %EBITDA Margin

Financial Highlight – Q1’21 EBITDA

Unit : THB mln

Remark: 1/Exclude EBITDA from 3 UWC Biomass Power Plants.

40.6%/141.6%/1

% EBITDA Margin (excl.

UWC Biomass)


884

1,359

303 327 306

-69

149

291

-73

54

17.9%

27.2%24.9%

26.3%

23.3%

-100

100

300

500

700

900

1,100

1,300

1,500

1,700

2019 2020 Q1'2020 Q4'2020 Q1'2021

Profit from ordinary activities Extraordinary items %Core Margin

Financial Highlight – Q1’21 Net Profit / Core Profit / Core Profit Margin

Net Profit

815

Unit : THB mln

1,508

594360

254

Q1-2020 Q4-2020 Q1-2021

Ordinary

activities

Extraordinary

itemsTotal

Ordinary

activities

Extraordinary

itemsTotal

Ordinary

activities

Extraordinary

itemsTotal

Profit before tax (EBT) 315 334 649 338 (91) 247 321 68 389

Tax income(expense) (12) (43) (55) (11) 18 7 (15) (14) (29)

Net profit 303 291 594 327 (73) 254 306 54 360

28.0%/1

Remark: 1/Exclude Core Margin from 3 UWC Biomass Power Plants.

25.5%/1

% Core Margin (excl. UWC Biomass)


ACE Outstanding Debt and Leverage Ratio

ACE’s Leverage Ratio

Unit: THB mln December 31

2019 2020 Q1’2021

Current Interest-bearing debt 1,084 842 736

Non-Current Interest-bearing debt 1,911 3,106 3,817

Total interest-bearing debt 2,995 3,948 4,533

Cash equivalent and restricted cash 571 760 1,252

Net Interest-bearing debt 2,424 3,188 3,301

Equity (THB mln) 10,793 11,993 12,353

Unit : THB mln

10,793

11,993

12,353

0.28x0.33x

0.37x

0.22x 0.27x 0.27x

10,000

10,500

11,000

11,500

12,000

12,500

2019 2020 Q1'2021

Total Equity IBD/E Net IBD/E

29

2 Operational Expertise &

Economy of Scale

✓ Lower plant heat rate = decrease fuel

consumption by up to 30%

✓ Artificial Intelligence, IoTs and Big

data for cost control and operations

improvement

✓ Environmentally friendly

✓ Proven track record in building and

running 19 successful powerplants

projects

✓ Continuous operational improvements

✓ Economy of scale

✓ Strong feedstock purchasing team

✓ Last supply chain network and efficient

(over 40 years in the making)

1 Advance Technology

3 Relationship with Key

Stakeholder

✓ Major shareholders’ plantation

business can support long-term

feedstock development plan

✓ Strong & long-term relationship with

communities and farmers

✓ Strong relationship with lender

ACE’s 3 Core Value Represent Competitive Advantage to Secure New PPAs

R&D

Sustainability

✓ Fuel crops from major

shareholders’ plantation

business

✓ New Biomass Fuel Types

✓ Machineries and improved

design

✓ Feed stock security

✓ Financial security

✓ Community support

Knowhow

✓ Low O&M cost

✓ Strong & capable team of professionals

ready to handle new projects.


ACE’s Key Strengths and Opportunities

2

3

Efficient Operational Capabilities with Continuous Improvement

▪ Lower Feedstock and O&M cost which leads to higher margin

▪ Stronger creditworthiness which leads to lower financing cost

▪ Peer-to-Peer Electricity Trading which leads to additional electricity sales

Low Downside Risk

▪ Secured Demand & Cashflow (Long term Power Purchase Agreement with the Government)

▪ Proven Operational Excellence & Feedstock Management

▪ Our business model commits to the greater good and has a positive Total Societal Impact (TSI)

Continuous Growth from Projects in the Pipeline and Future

▪ Power Plant’s PPA with exceptional tariff rate

▪ Better technology which leads to higher efficiency and less feedstock / kWh

▪ Economy of Scale resulting in lower CAPEX, OPEX, and SG&A

▪ Appreciation of THB potentially leads to lower CAPEX

▪ 28% share in the latest biomass power plant bidding

5

World Megatrend

▪ “Electrification” Era

▪ Global & Thailand Commitment to Zero Carbon which implies the rise of renewable energy

▪ Biomass is one of the most reliable renewable energy that can replace the base load provided by conventional energy.

▪ ESG Business

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

4

31

Total Societal Impact(TSI) and Environmental, Social and Governance (ESG)

Biomass Power plant

Municipal Solid Waste (MSW) 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’s spending on putting down forest fires and farm fires

• Saves government’s spending on PM 2.5 related health problems such as respiratory

complications, masks distributions and water spraying in cities, to from PM 2.5 particle.

• Prevents economic loss from the decrease in tourism due to PM 2.5 problems.

Solves PM 2.5 problem at the root

• Additional income to farmers

• Stabilize income for farmers under market uncertainty → reduce empty subsidies that

the government has to give out

• Distribution of revenue to grassroots : Shift from LNG imports to purchasing fuel from individual Thai

farmers

Positive Economic and Societal

Impact

GDP Contribution/1 1.8 Billion THB / year / 9.9 MW biomass power plant

Source: Thailand Energy Academy

Contribute to the Paris Agreement Decreasing greenhouse gas emission.

Future Potential To provide base-load to grid instead of conventional energy

Solves MSW mountain problems Save healthcare and environmental spending for the government from problems caused by MSW in

landfills

Thank You

For further inquiry

www.ace-energy.co.th

Email : [email protected]

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