Gunkul opp day

Strictly Private & Confidential

Gunkul Engineering PCL

Opportunity Day Q3/2012

November 29, 2012


1

Presentation Outline

1. Company Overview

2. Operating and Financial Performance

3. Strategic Direction and Growth Strategy


2

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


3

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)


4

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


• Meters


• TransformersLow voltage lines:

• Capacitors

• Explosion proof products

• Fuses and switches

• Grounding


• Insulators


• 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


• Insulators


• Live part covers


• Meters

• Preformed


• Transformers

1


5

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


6

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)



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


7

Project Owner MW Status





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


8

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


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


Plant Information

Contract Value 752 Million Baht


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



9

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



Capacity: 4.5 MW

Location: Pichit



Capacity: 8.0 MW

Location: Nakorn Nayok



Capacity: 3.0 MW Location: Bung Samphan, Petchaboon


Total Capacity

30.9 MW

Total Plants: 12 Plants

Total Capacity

26 MW


Capacity: 6.5 MW

Location: Tasang, Nakorn -Sawan


Capacity: 6.5 MW

Location: Takeed, Nakorn -Sawan


Capacity: 6.5 MW

Location: Dong-Korn, Chainat


Capacity: 6.5 MWLocation: Bung Samphan, Petchaboon

GPS Plants

GPG Plants

Project 1 (Under Development)

Capacity: 2 MW

Location: Nakorn Ratchasima


Capacity: 8 MW



Capacity: 50 MW


Total Capacity

60 MW

WED Plants

Already Operate : 27 MW

Under Construction : 30 MW

Going to Construction : 60 MW

Total :117MW

3


10

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



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


11

Project 2 : GPG- WICHIANBURI 8.0 MW

Unit substation 98%Main substation 98%

Electrical Installation 80% Construction PEA 22kV. 60%


12

Project 3 : GPG-NOEN POE 4.5 MW

Main Substation Building 65%

Mounting installation 75 %PV install Prototype 30%

Unit substation 70%


13

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%)


14

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%.


15

Project 4 : GPS- BUNGSAMPHAN 6.5MW

Array box connection 75%

PV Installation 86%Construction PEA 22kV. 70%

Main substation 91%


16

Investment ~ THB60 – 70 mm per MW

Technology Horizontal Wind Turbine

Selling price

(Base Tariff)~ THB3.0 per kWh



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


17

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


18

Land Layout – 49 Plots of Title Deed

Site Layout

│ Fencing works : Start Construction

│ Land Boundary Measurement: Nearly to finish


19

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


20


1. Company Overview




21

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


22

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


23

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


24

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


25

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


26

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


27


1. Company Overview




28

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


29

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


30

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


31

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)


32

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


33

Remark: One year wind data collecting will complete on 9 Sep, 2012

Renewable Power Producer—Wind Data Report3


34

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


35

M8 – Chaungsauk (Mon State)


36

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


37

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


38

Special Project


39

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

40


Q & A

Gunkul opp day

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