Download - Gunkul Engineering PCL
Strictly Private & Confidential
1
Presentation Outline
1. Company Overview
2. Operating and Financial Performance
3. Strategic Direction and Growth Strategy
Strictly Private & Confidential
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Who is GUNKUL
Founded in 1982
as an electrical
equipment trader
1982
Gunkul Engineering PCL (―GUNKUL‖ or the ―Company‖) is an integrated energy player. GUNKUL has been one of the
biggest high-voltage electrical equipment supplier and manufacturer; currently gearing more toward renewable power
business with the vision to become Thailand's no. 1 one-stop providers for the electrical equipment as well as a dominant
player in Thailand’s renewable energy arena
Set up our own
manufacturer to
produce electrical
products
1992
Expanded its
trading business
to neighboring
countries—
Myanmar, Lao
1997 2009
Entered into renewable
energy business and
achieved the set up
Embarked its Power Producer
Business as well as EPC
business to serve power
producers
Possess a current renewable
energy pool of 117 MW PPA
(57 MW PPA of Solar Power
Plants and 60 MW PPA of
Wind Power Plants) Since 2010
Set up the first offshore office in
Yangon, Myanmar
PDR, and
Vietnam
and supply
of
Thailand‘s
first wind
turbine to
EGAT
Conventional business
Source of Revenue
GUNKUL’s future revenue will be generated from the 3 main businesses, each of which benefits from GUNKUL’s
integrated business model and over 30-year experience and proven track records in Thai energy industry
Conventional business
EPC contractors
for power plants
Solar and wind
power producer
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Business Structure
We have structured our business into three business units—1) Conventional BU, 2) EPC Contractor BU and
3) Power Producer BU, each of which leverages expertise of each other
GUNKUL
Group
Public
shareholders
GUNKUL PCL
60% 40%
GKA
GKP
KNP
GUNKUL Powergen
(GPG)
Manufacturing
Electrical Products
Supplying Electrical
Products
Generating
Electrical Power
G-Power Source
(GPS)
Manufacturing
Electrical Products
Generating
Electrical Power
CustomerManufacturer Distributor
GKA
GKP
External
Manufacturers
KNP
GUNKUL
Gov’t
Private
Foreign
Conventional Business Flow1
CustomerSupplier Main Contractor
GKA
GKP
GUNKUL
GPG & GPS
WED
Other power
producers
EPC Contractor BU Flow2
GPS
(26.0 MW)40%
60%
Power Producer BU Flow3
100%
100%
100%
100%
40%
Wind Energy
Development (WED)
70%
Generating
Electrical Power
GPG
(30.9 MW)
WED
(60 MW)
100%GUNKUL
70%
30%
Solar
Wind
SolarEGAT & PEA
(Electricity
Authorities)
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Electricity plants:
• Wind turbine components
• Solar panel componentsTransmission lines:
• Cable and accessories
• Fuse and switches
• Hardware and connectors
• Insulators
• Lightning protection
• Maintenance equipment
• Tools and instruments
Substation:
• Battery and chargers
• Capacitors
• Grounding
• Maintenance equipment
• Meters
• Tools and instruments
• TransformersLow voltage lines:
• Capacitors
• Explosion proof products
• Fuses and switches
• Grounding
• Hardware and connectors
• Insulators
• Lightning protection
• Meters
• Preformed
• Street lighting and control
• Telephone hardware
High Light Products produced in house
Conventional Business—Product Offering
GUNKUL offers a wide range of products and services from upstream to downstream of the electricity supply system (over 5,000 electricity items)
Distribution lines:
• Cables and accessories
• Capacitors
• Fuse and switches
• Grounding
• Hardware and connectors
• Insulators
• Lightning protection
• Live part covers
• Maintenance equipment
• Meters
• Preformed
• Tools and instruments
• Transformers
1
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Conventional Business—Our Customers
Central Bidding
Individual
Purchasing Order
Customers’ Characteristics
Barrier to entry GUNKUL
• High qualification
requirements i.e. requiring
products to meet 3
industrial standards
• Continuously order for replacement & expansion
• ―High‖ barrier to entry
• Product meeting industrial standard
(TISI)
• Expensive type test for each product
• Difficulty to be a vendor list
• Limitation for 1st order, only 20% of total order for some product (that could have a
significant impact to the electric system)
• Approval for vender list
• Offers approx. 300 owned
product items to this segment,
• GUNKUL‘s manufacturing
facilities have put the Company
at advantage
• Expertise in sourcing quality
products to fulfill remaining categories
• Wholesalers and
contractors might come in a
form of project based
needs, therefore, they may
require diverse kinds of
products with certain quality at a time
• ―Moderate to high‖ barrier to entry
• For those contractors awarded turnkey
projects from government, they will also
be required to meet the government‘s
quality specifications. Accordingly,
suppliers such as GUNKUL will face the
same circumstances as selling to government segment
• Stay in good position and easy to
access this segment due to:
• GUNKUL is in an approved
vender list from state enterprise
• It offers more than 5,000 product items to this segment
Myanmar Electric
Power Enterprise
(MEPE), Yangon
Electricity Supply
Board (YESB),
Electricite Du Laos (EL)
• Might come in a form of
project based needs,
therefore, this segment
may require diverse kinds of products at a time
• ―High‖ barrier to entry
• Accessible and knowledgeable in this
type of customers
• Funding capability
• Long established relationship and
network
• Fully understand characteristic of
customers
• Well recognized and supported
from financial institutional
1. G
ove
rnm
en
t2. P
riva
te3. F
ore
ign
GUNKUL’s capability to serve all needs
1
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CustomersSupplier Main Contractor
GKA
GKP
Sub Contractor
GUNKUL
GPG & GPS
WED
External
Customers
EPC Contractor BU Flow
Project Owner MW Status
1) Gunkul Powergen (Phase 1)
2) G-Power Source (Phase 1)
3) Gunkul Powergen (Phase 2)
4) G-Power Source (Phase 2)
5) CK & Sun Solar Power Plant
6) Solatra Solar Power Plant
4.4
19.5
23.5
6.5
8.0
8.0
Complete
Complete
Under Construction
Under Construction
Under Construction
Under Construction
Total 73
Project Reference
Business Partner
With more 30-year experience in the electrical system and its integrated business model, GUNKUL
diversifies its business to provide one-stop services for constructing power plants
EPC Contractor Business2
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Project Owner MW Status
1) Gunkul Powergen (Phase 1)
2) G-Power Source (Phase 1)
3) Gunkul Powergen (Phase 2)
4) G-Power Source (Phase 2)
4.4
19.5
23.5
6.5
Complete
Complete
Under Construction
Under Construction
Total 54
Contract Value ~ THB 3,000 mm
Date of Completion Q4, 2012. Current work progress 72%
Technology Thin Film CIS, Crystalline Silicon
Selling price ~ THB3.0 per kWh
Adder THB8.0 per kWh for 10 years since start of COD
BOI Tax Exemption Year 1st - 8st : 100%, 9th – 13th : 50%
Plant Information
EPC Contractor Business—Pipeline projects 2
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EPC Contractor Business—Pipeline projects2
A B
Project Project
CK & Sun Solar Power Plant 8 MW
(Bureerum)
Solatra Solar Power Plant 8 MW
(Supanburi)
Plant Information
Contract Value THB736 mm
Date of Completion Q4, 2012. Current work progress 72%
TechnologySolar Frointer Thin Flim CIS, Schneider electrical equipment system
Selling price ~ THB3.0 per kWh
AdderTHB8.0 per kWh for 10 years since start of COD
BOI Tax Exemption Year 1st - 8st : 100%, 9th – 13th : 50%
Plant Information
Contract Value 752 Million Baht
Date of Completion Q4, 2012. Current work progress 85%
TechnologySolar Frointer Thin Flim CIS, Schneider electrical equipment system
Selling price ~ THB 3.0 per kWh
AdderTHB 8.0 per kWh for 10 years since start of COD
BOI Tax Exemption Year 1st - 8st : 100%, 9th – 13th : 50%
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Power Producer Business--Power Plant Portfolio (Domestic)
Project 1 (Operating)
Capacity: 3.0 MW and 4.4 MW
Location: Chondan Petchaboon
Average Radiation: 5.08 kWh/m2/d
Project 2 (Under Construction)
Capacity: 8.0 MW
Location: Petchaboon
Average Radiation: 5.08 kWh/m2/d
Project 3 (Under Construction)
Capacity: 4.5 MW
Location: Pichit
Average Radiation: 5.08 kWh/m2/d
Project 4 (Under Construction)
Capacity: 8.0 MW
Location: Nakorn Nayok
Average Radiation: 5.04 kWh/m2/d
Project 5 (Under Construction)
Capacity: 3.0 MW Location: Bung Samphan, Petchaboon
Average Radiation: 5.04 kWh/m2/d
Total Capacity
30.9 MW
Total Plants: 12 Plants
Total Capacity
26 MW
Project 1 (Operating)
Capacity: 6.5 MW
Location: Tasang, Nakorn -Sawan
Project 2 (Operating)
Capacity: 6.5 MW
Location: Takeed, Nakorn -Sawan
Project 3 (Operating)
Capacity: 6.5 MW
Location: Dong-Korn, Chainat
Project 4 (Under Construction)
Capacity: 6.5 MWLocation: Bung Samphan, Petchaboon
GPS Plants
GPG Plants
Project 1 (Under Development)
Capacity: 2 MW
Location: Nakorn Ratchasima
Project 2 (Under Development)
Capacity: 8 MW
Location: Nakorn Ratchasima
Project 3 (Under Development)
Capacity: 50 MW
Location: Nakorn Ratchasima
Total Capacity
60 MW
WED Plants
Already Operate : 27 MW
Under Construction : 30 MW
Going to Construction : 60 MW
Total :117MW
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Investment ~ THB80 – 100 mm per MW
Technology Thin Film CIS modules without cadmium or Crystalline Silicon Module
Selling price (Base Tariff) ~ THB 3.0 per kWh
Adder THB8.0 per kWh for 10 years since start of COD
BOI Tax Exemption Year 1st - 8st : 100%, 9th – 13th : 50%
Revenue ~ THB19 mm per MW
Key Information
Summary of Solar Power Plant Projects
Power Producer Business—Solar Project Information3
Energy Company Project Location2012 2013
Installed
Capcity
Accumulated
Installed
Capacity
Q1 Q2 Q3 Q4 Q1 Q2 (MW) (MW)
Solar
Power
57 MW
GPG Project 1 Chondan Operated since 2011 7.5 7.5
GPS Project 1-3 Tasang, Taked, Dong-Khon Operated since Q1,2012 19.5 27
GPS Project 4 Bung Samphan X 6.5 33.5
GPG Project 2 Petchaboon X 8 41.5
GPG Project 4 Nakorn Nayok X 8 49.5
GPG Project 3 Pichit X 4.5 54
GPG Project 5 Bung Samphan X 3 57
Remark: X indicates a period of a planned COD
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Project 2 : GPG- WICHIANBURI 8.0 MW
Unit substation 98%Main substation 98%
Electrical Installation 80% Construction PEA 22kV. 60%
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Project 3 : GPG-NOEN POE 4.5 MW
Main Substation Building 65%
Mounting installation 75 %PV install Prototype 30%
Unit substation 70%
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Project 4 : GPG- SRICHULA 8 MW
DC 6 Sq.mm pulling Sub 1-3 (80%)
Pump Station 55%
Unit substation 77%
PV Installation Sub 1-2 (90%)
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Project 5 : GPG- BUNGSAMPHAN II 3MW
Screw piling of MW#1 on 30%.
Compaction access road and backfilling
of Unit sub dike layer #1 progress 100%.
Compaction access road and backfilling
of Unit sub dike D layer #1 progress 100%.
Compacted soil and land leveling
of zoon B layer 3 progress 100%.
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Project 4 : GPS- BUNGSAMPHAN 6.5MW
Array box connection 75%
PV Installation 86%Construction PEA 22kV. 70%
Main substation 91%
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Investment ~ THB60 – 70 mm per MW
Technology Horizontal Wind Turbine
Selling price
(Base Tariff)~ THB3.0 per kWh
Adder THB3.5 per kWh for 10 years since start of COD
BOI Tax Exemption Year 1st - 8st : 100%, 9th – 13th : 50%
Revenue ~ THB14 mm per MW
Key Information
Summary of Wind Power Plant Projects
EGAT
(50 MW)
PEA
(2 MW)
70% 30%
PEA
(8 MW)
Shareholding Structure
Power Producer Business—Wind Project Information3
WED
GUNKUL
Energy Project Location2013 2015
Installed
Capcity
Accumulated
Installed
Capacity
Q1 Q2 Q3 Q4 Q1 (MW) (MW)
Wind Power
60 MW
Project 1 Suplu 1& 2 Planned COD 10 10
Project 2 Wayu Planned COD 50 60
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Update Status for 60 MW Huai Bong Wind Farm
General information: Land1
Wind Data Summary Report2
Progress on Engineering Work4
60 MW Huai Bong
Wind Farm
License for 60 MW Huai Bong Wind Power Project 3
Tentative Plan5
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Land Layout – 49 Plots of Title Deed
Site Layout
│ Fencing works : Start Construction
│ Land Boundary Measurement: Nearly to finish
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Wind Data Summary Report
Wind data recorded at the site period
Sep,11 Oct,11 Nov,11 Dec,11 Jan, 12 Feb,12 Mar,12 Apr,12 May,12 Jun, 12 Jul, 12 Aug,12 Avg
Mast 1 5.2 5.8 6.5 8.3 5.3 4.8 5.0 5.0 4.8 7.2 7.1 7.2 6.1
Mast 2 5.5 6.1 6.8 8.7 5.6 5.1 5.3 5.2 4.9 7.3 7.3 7.3 6.3
Full year wind measurement
at site will be on 9th Sep 2012
The draft of Feasibility report
by GL GH is expected to
finish within Nov 2012
The monthly average wind speed at the site
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Presentation Outline
1. Company Overview
2. Operating and Financial Performance
3. Strategic Direction and Growth Strategy
Strictly Private & Confidential
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0
1,000
2,000
3,000
2008 2009 2010 2011 Q3/2012
719 451 448 274 295
285249 240 487 779
362164
6001,368 570
73 133
449 1,543 -
416
Government PrivateForeign ElectricityConstruction disposal of investment
1,366
864
1,288
2,651
THB mn
295
(8.89%)
779
(23.46%)
570 (17.17%)
133
(4.01%)
1,543
(46.48%)
Government Private Foreign Electricity Construction
3,736
Q3/12
Q3/11
Revenue Breakdown as of Sep 30, 2012
Revenue from electricity generated as well as EPC construction will be majority income for GUNKUL in the future.
Revenue Breakdown by Type of Customer % Revenue Breakdown by Type of Customer
184
(8.86%)
392
(18.84%)1,126
(54.11%)
41
(1.97%) 338
(16.24%)
Government Private Foreign Electricity Construction
Note: Total Revenue from Government, Private and Foreign Customer
is considered as revenue from Conventional Business
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831
406
987
2,4462,926
535 458302
205379
24.125.5
28.14
22.98
18.23
0
5
10
15
20
25
30
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2008 2009 2010 2011 Q3/2012
Rev.from Trading&Construction Rev.from Manu. Gross Margin(%)-RHS
54 123 89
320.61
6716.2
9.55
3.35
9.66
17.83
0
2
4
6
8
10
12
14
16
18
20
0
100
200
300
400
500
600
700
800
2009 2010 2011 Q3/2012 Q3/2012
Margin THB mn
Net Profit Net Profit Margin (%)
Excluded GainFrom sale GPS
Included Gain
From sale GPS
THB mn
Margin%
Revenue & Profit as of Sep 30, 2012
Revenue vs. Overall Gross Margin Net Profit vs. Net Profit Margin
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75 74 153434
956276 140
431
3005 1859
117
4
902
864
66 131
69
14
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2008 2009 2010 2011 Q3/2012
AP ST-trade related liabilites
LT-int.bearing Other liabilities
29
Our Financial Flexibility
Gunkul’s Liabilities D/E Ratio
THB mn
0.7 0.70.58
3.68
1.82
0
0.5
1
1.5
2
2.5
3
3.5
4
2008 2009 2010 2011 Q3/2012
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Financial Information as of Sep 30, 2012
Transaction 30/09/2012* 31/12/2011* 31/12/2010* 31/12/2009* 31/12/2008*
Asset (MB) 5,747.78 5,539.78 1,789.71 856.90 1,051.36
Liability (MB) 3,708.67 4,356.18 657.51 351.79 428.17
Equity (MB) 2,039.11 1,183.60 1,132.20 505.20 632.19
Paid-up (MB) 440.00 400.00 400.00 300.00 240.00
Revenue (MB) 3,767.30 2,651.51 1,288.7 864.07 1,366.20
Net Profit (MB) 671.80 89.52 123.17 53.66 123.01
ROA (%) 11.69 1.62 6.88 6.26 11.70
ROE (%) 32.95 7.56 10.88 10.62 19.74
Net Profit (%) 17.83 3.35 9.56 6.21 9.00
0
1,000
2,000
3,000
4,000
Q3/2012Liability
3.69%
0
5
10
15
20
25
30
35
0
500
1,000
1,500
2,000
2,500
Q3/2012Equlity ROE
THB mnTHB mn THB mn% %
* Consolidated
Asset Liability Equity
11.7 %
6.26 %6.88%
1.62%
11.69%
0
2
4
6
8
10
12
14
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q3/2012Asset ROA
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Unit : THB mn
Current Asset
Non Current
Asset
Current
Liabilities
Non Current
Liabilities
Shareholders’
Equity
As of Sep 30,2012
3,195.83
2,551.95
2,815.64
893.02
2,039.11
3,823.27
1,716.513,440.00
916.18
1,183.60
As of Dec 31,2011
Growing Balance Sheet
Balance Sheet
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Gunkul Backlog & Sales Forecast 2012
Backlog to confirm GUNKUL’s momentum
THB (MN)
Sales Backlog of as at 27/11/2012 (secure for the year 2012 of THB 1,649 m)
11
1,137
311
190
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Presentation Outline
1. Company Overview
2. Operating and Financial Performance
3. Strategic Direction and Growth Strategy
Strictly Private & Confidential
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Conventional Business—Higher investments in transmission
and distribution is positive due to increasing demand
1
Demand for electricity continued to expand. In 1H12
electricity demand in Thailand picked up rapidly at 8.8% YoY,
compared with the average of 4.6% over the past ten years
+ 8.8% YoY
Investment in transmission and distribution systems will remain
substantial. As indicated in PDP 2010, the investments for the
main electricity authorities during 2010-20F is budgeted to reach
THB328 bn.
THB bn.
Higher investments in the transmission and distribution are
supported by:
Gov‘t to improve the grid‘s efficiency
Gov‘t to enlarge coverage to accommodate economic growth
and the rising urbanization trend
Expansion of the mass transit system in Bangkok
Source: EGAT
Source: EGAT
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EPC Contractor Business--Great opportunity from being a one
stop service of solar EPC contract
2
Since PPA of 1,770 MWs are approved and signed with an
expiration, GUNKUL as a one stop provider can serve this
big chuck solar power producers with estimated market value
of over THB150 bn.
Source: EPPO as of Mar, 2012 (SPP + VSPP)
MW
Estimated cost breakdown of building a solar power plant.
GUNKUL can offer services, value of which accounts for
nearly 50% of total pie
Source: Company
* Including Solar Thermal ~ 1,400 MW
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GUNKUL’s Next Step in Power Producer Business
Having entered into the renewable energy business since
2010, GUNKUL has actively sought and acquired PPA of
renewable power plants and will continue to add PPA to its
portfolios at a more aggressive pace
2010 2011 2012 2013
30.9 MW
Solar
30.9
MW
Solar
30.9
MW
Solar
30.9 MW
Solar
26 MW
Solar
26 MW
Solar
26 MW
Solar
60 MW
Wind
60 MW
Wind
PDP-2010 is promoting greater use of renewable energy in power
generation. The proportion of renewable energy is forecasted to
rise from 21% in 2012 to 29% in 2030. EGAT will offer an ‗adder‘ to
the base tariff rates as an incentive to encourage the participation
of private operators to build renewable energy power plants
Renewable Combined cycle gas
turbineCogeneration Thermal
2012 2021 2030
0%
100%
20%
40%
60%
80%
Proportion of renewable energy
Source: EGAT
Type of
Energy
Planned
Capacity
Already
COD
PPA Approved
with Signature
PPA
Approved Consider
*Solar 2,000 277.33 1,981.49 292.92 1,227.67
Biogas 600 98.93 81.96 50.37 31.55
Biomass 3,630 1288.42 1,463.66 588.92 518
Waste 160 37.33 48.91 122.86 82.2
Hydro 1,608 13.28 6.2 0.09 15.57
Wind 1,200 0.38 395.83 861.96 1821.84
Total 9,198 1,715.67 3,978.05 1,917.12 3,696.83
Source: EPPO as of Mar, 12 (SPP+VSPP)
* Including Solar Thermal ~ 1,400 MW
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Renewable Power Producer—Domestic organic growth3
Energy Company Project Location2012 2013 2015
Installed
Capcity
Accumul
ated
Installed
Capacity
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (MW) (MW)
Solar Power
57 MW
GPG Project 1 Chondan Operated since 2011 7.5 7.5
GPS Project 1-3Tasang, Taked, Dong-
Khon Operated since 2011 19.5 27
GPS Project 4 Bung Samphan X 6.5 33.5
GPG Project 2 Petchaboon X 8 41.5
GPG Project 4 Nakorn Nayok X 8 49.5
GPG Project 3 Pichit X 4.5 54
GPG Project 5 Bung Samphan X 3 57
Wind Power
60 MW
WED Project 1 Huai Bong 1& 2Planned
COD10 67
WED Project 2 WayuPlanned
COD50 117
Total 117 MW
Extracting growth from existing domestic assets
COD Schedule of Solar and Wind Power Projects (MW)
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Total area of 2111Rai 76.8Sq. Wa.
All land plots have title deeds
Flat-High Plateau covered by
temporal crops such as tapioca,
corn, etc.
The elevation across the site varies
between 315-360m
Close to Highway 2256
Renewable Power Producer—Domestic Wind Project Progress3
Project Site & Wind Measurement Tower
Site Layout
Land Layout – 49 Plots of Title Deeds
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Remark: One year wind data collecting will complete on 9 Sep, 2012
Renewable Power Producer—Wind Data Report3
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Myanmar Wind Project
* Expected to start construction
in 2012
Potential Areas
• Tanintharyi State
• Mon State
• Kayin State
Wind Energy Projects in Myanmar over 1,000 MW
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M4 – Zingyalk Site (Mon State)
Site Information
Orange – Red Wind Potential Area
Road Access with National Grid at foothill
Small Road Access to the site
Concerns: Full with Pagodas and Monasteries
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M2 – Kadwe Site (Tanintaryi State)
Site Information
Yellow Wind Potential Area
Continuous Mountain
Beside the road constructed by ITD
Future Transmission Line, Road Access, Railway. Oil and Gas Pipeline will be constructed by ITD
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Supply of Wind Turbines
Wind Turbine Generation Project Stage II
• Project Owner: EGAT
• Project Location: Lamtaklong
• Wind Turbine: 12 x 1.5 MW
• Budget: 872.180 MTHB (1,700 MTHB)
Project Schedule
• Estimate submit: Quarter 4/2555
• Estimate sign contract: Quarter 4/2555
• Delivery: Quarter 4/2556
• Installation and finish: Quarter 2/2557