Sun For The Future

COMPANY PROFILE

20/03/2018 1
 Sun For The Future

CONTENTS
• Vision & Mission
• Key Development Milestones
• Portfolios & Diversification (Totaling 298.42 MW PPA)
• Investment in Thailand (Totaling 121.70 MW PPA)
◦ Solar PV Farms & Solar Thermal – 85.5 MW PPA
◦ Solar PV Rooftops – 14 MW PPA
◦ Biomass Power Plants – 22.2 MW PPA

• Investment in Japan (Totaling 176.72 MW PPA)

◦ Solar PV Farms – 176.72 MW PPA

• Financial Highlights
◦ Profitability
◦ Valuation Assumption

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 Sun For The Future

VISION & MISSION

Vision
To become a world-class regional leader in providing
renewable energy through reliable technologies to serve
both commercial and social societies

Mission
To establish a solid footprint in Thailand in the solar power
industry and expand into other renewable energies as well
as developing an international solar power business
focusing in Asia & Oceania regions

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 Sun For The Future

– supporting GREEN & CLEAN AIR

“ We aim to reduce reliance on fossil fuels

by creating cleaner air quality
through renewable energy with the goal
to cut emissions of major pollutants. ”
- Dr. Cathleen Maleenont, CEO of TSE PCL -

• Renewable Energy produces little to no global warming emissions. Even when including
“life cycle” emissions of clean energy (i.e. emissions from each stage of a technology’s life —manufacturing,
installation, operation, decommissioning), the global warming emissions associated with renewable
energy are minimal (*)

• Solar Energy provide air quality, public health, and greenhouse gas emission benefits as it reduces
reliance on combustion-based electricity generation.

Sources: * Intergovernmental Panel on Climate Change (IPCC). 2011

 Sun For The Future

SOLAR ENERGY: CLEANER AIR -

SOONER AT LOWER COST
• The costs of renewable energy technologies have declined steadily, and are projected to drop even more.
For example, the average price to install solar dropped more than 70% between 2010 and 2017 (*)

• Solar Energy requires essentially no water to operate and thus does not pollute water resources or strain supplies
by competing with agriculture, drinking water, or other important water needs.

Costs will likely decline even further as markets mature and companies increasingly take advantage of
economies of scale.

• In contrast, fossil fuel prices can vary dramatically and are prone to substantial price swings. For example, there
was a rapid increase in US coal prices due to rising global demand before 2008, then a rapid fall after 2008 when
global demands declined (**) Likewise, natural gas prices have fluctuated greatly since 2000.

Sources: * SEIA. 2017. Solar Market Insight Report 2017 Q2 / ** UCS. 2011. A Risky Proposition: The financial hazards of new investments in coal plants..
 Sun For The Future

In a Nutshell: Invest in RE to cut air pollution harms

Renewable Energy (RE) and Energy Efficiency (EE) will work in synergy to drive global energy decarburization.
When pursued together, they result in higher shares of renewable energy, a faster reduction in energy intensity,
and lower energy system costs. This also brings environmental and social benefits, such as less air pollution.
DEVELOPMENT MILESTONES
Continuing Portfolio Improvement:
Strengthened Presence in Prospect Market & New Business Expansion

BBL SCB EXIM SMTB

5400 mTHB 566 mTHB 2258 mTHB 4800 mJPY
(Hanamizuki)
Debentures
3000 mTHB

MW PPA 4.5 44.5 89.5 99.0 104.5 106.5 129.9 143.4 143.4 143.4 298.4
MW MW MW MW MW MW MW MW MW MW MW

+ Sakura 1.99 + Jyoso 1.25 + Hanamizuki 13.5 + Onikoube 154.98

+ Biomass 22.2

- VSPP Semi-Firm (Biomass PP)

* Potential Enhancers - Overseas Biomass PP
BIOMASS PP

CO-OP PV FARM

PV FARM - JAPAN
PV ROOFTOP
PV FARM
THERMAL

2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
 Sun For The Future

PORTFOLIOS & DIVERSIFICATION

Operating Owner Capacity
Project Status Power Purchase Rate Tenor Tax Rate
Company
ship Gross Effective
Base Tariff + FT
Solar Thermal TSE Fully Operated 100% 4.50 4.50 + Adder 8 Baht
5 years with
(10 years from COD) 0% (year 0 – 8)
automatic
Base Tariff + FT
renewal
Solar PV Farms TSR Fully Operated 60% 104.80 80.00 + Adder 6.5 Baht 10% (year 9 – 13)
(10 years from COD)
20% (14 – 25 years) THAILAND
Portfolio = 121.70 MW PPA
Solar PV Rooftops TSER Fully Operated 100% 14.00 14.00 FIT 6.16 Baht 25 years

5 out of 8 0% (CIT 20 years)

Japan Solar PV
TSI, TSO under 97% 210.47 176.72 FIT 32 – 36 Yen 20 years 20.42% (WHT on
Farms
operation allocation)
0% (year 0 – 8)
Co-operative
SV Fully Operated 100% 1.00 1.00 FIT 5.66 Baht 25 years 20% (year 9 – 25)
Solar PV Farms

Biomass Power FIT 4.24 Baht

TSE Development 49%* 6.00 4.60 20 Yrs 0% (year 0 – 8)
Plant (BSW) + Premium 0.30 THB (8 years) JAPAN
Portfolio = 176.72 MW PPA
Biomass Power FIT 4.24 Baht
TSE Development 70% 19.80 17.60 15 Yrs 4 mths 0% (year 0 – 8)
Plants (OSCAR) + Premium 0.30 THB (8 years)

Total 360.57 298.42

Remarks: * The Company invests at the initial 49% of registered capital and there will increase to be 100% of registered capital
after COD 3 years.

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Investment in Thailand

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Investment in Thailand
TSE’S SOLAR PV FARMS & SOLAR THERMAL IN THAILAND = TOTAL 85.5 MW PPA

Solar Thermal = 4.5 MW (fully operated & COD in 2011)

Solar PV Farms = 80.0 MW (fully operated & COD in 2014)

Solar PV Farm = 1.0 MW (fully operated & COD in Dec 2016)

(Gov’t Sector & Co-Op Solar Farm)

TOTAL = 85.5 MW PPA

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TSE’S SOLAR PV FARMS & SOLAR THERMAL IN THAILAND = TOTAL 85.5 MW PPA

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Investment in Thailand
TSE’S SOLAR PV ROOFTOPS IN THAILAND = TOTAL 14.0 MW PPA

In partnership with

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TSE’S SOLAR PV ROOFTOPS IN THAILAND = TOTAL 14.0 MW PPA

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Investment in Thailand
TSE’S BIOMASS POWER PLANTS IN THAILAND = TOTAL 22.2 MW PPA

BSW OSW 1 OSW 2

Location Surat Thani Nakorn Sri Thammarat Nakorn Sri Thammarat

Installed Capacity 6.0 MW 9.9 MW 9.9 MW

Selling Capacity 4.6 MW 8.8 MW 8.8 MW

Scheme on Purchase FiT Scheme FiT Scheme FiT Scheme

of Electricity (4.24 THB/kWh) (4.24 THB/kWh) (4.24 THB/kWh)

(+ premium : 0.3 THB/kWh for 8 years)

SCOD Q1/2018 Q2/2018 Q2/2018

Raw Material Woodchip Woodchip Woodchip

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 Sun For The Future

TSE’S BIOMASS POWER PLANTS IN THAILAND = TOTAL 22.2 MW PPA

BSW OSW 1 OSW 2

Fuel Storage Building
Fuel Storage Building

Cooling Tower

Cooling Tower

Boiler & ESP Zone

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Investment in Japan

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Investment in Japan
TSE’S SOLAR PV FARMS IN JAPAN = TOTAL 176.72 MW PPA
TOYAMA

PV Farm
Shima (1.25 MW) MIYAGI
Sakura (1.99 MW)
PV Farm
Onikoube (154.98 MW)
ISHIKAWA

PV Farm
Hanamizuki (13.50 MW)

IBARAKI
Installed Selling
FUKUI
# Company Plant Type Project Site Capacity Capacity
Feed-in-
Location COD PV Farm
Tariff
(MW) (MW) PV Farm Jyoso (1.25 MW)
1 TSI PV Farm Kuno 0.65 0.50 36 Yen Ibaraki 18/8/2015
2 TSI PV Farm Shima 1.43 1.25 32 Yen Toyama 1/3/2016 Hikeme (1.50 MW) Ryugasaki (1.75 MW)
3 TSI PV Farm Hikeme 1.86 1.50 32 Yen Fukui 1/4/2016
4 TSI PV Farm Ryugasaki 2.34 1.75 36 Yen Ibaraki 1/9/2016 Kuno (0.50 MW)
5 TSI PV Farm Sakura 2.50 1.99 32 Yen Toyama 2/11/2016
6 TSI PV Farm Jyoso 1.43 1.25 36 Yen Ibaraki Q2 2018
7 TSI PV Farm Hanamizuki 17.50 13.50 36 Yen Ishikawa Q1, 2019
8 TSO PV Farm Onikoube 182.76 154.98 36 Yen Miyagi Q2, 2022
Total Capacity 210.47 176.72

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TSE’S SOLAR PV FARMS IN JAPAN = TOTAL 176.72 MW PPA

Kuno Shima Hikeme

0.5 MW 1.25 MW 1.50 MW
COD: Aug 2015 COD: Mar 2016 COD: Apr 2016

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TSE’S SOLAR PV FARMS IN JAPAN = TOTAL 176.72 MW PPA

Ryugasaki Sakura Jyoso

1.75 MW 1.99 MW 1.25 MW
COD: Sep 2016 COD: Nov 2016 Target COD: Q2, 2018

Hanamizuki
13.50 MW
Target COD: Q1, 2019

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TSE’S SOLAR PV FARMS IN JAPAN = TOTAL 176.72 MW PPA

Onikoube Project – 154.98 MW PPA Solar Power Plant Target COD: Q2, 2022

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Financial
Highlights

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Financial Highlights Growing Portfolio will be generating steady income

from strong base in solar energy providing the upside
for investors.
(mTHB)
Revenue EBITDA NP
1000 (mTHB) 2015 2016 2017
750 Revenue 766 1013 855
500 EBITDA 600 776 612
250 Net Profit 527 618 416
0
2015 2016 2017

Profitability Ratio (%)

100%

75%
2015 2016 2017
50% EBITDA Margin 78% 77% 72%
NP Margin 69% 61% 49%
25%

0%
2015 2016 2017
EBITDA Margin NP Margin

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Financial Highlights Liabilities

7438
8000
7000
Assets 6000
5000 3394 3789

14000 12218 4000

12000 3000
804
8375 2000
10000
6881 1000
8000
4844 0
6000 FY2014 FY2015 FY2016 FY2017

4000

2000 Equity
0
FY2014 FY2015 FY2016 FY2017 4563 4619
5000
4040
4500
3487
4000
3500
3000
Despite expanded investments during 2016-2017 in 2500

additional assets to help facilitate growth, financial 2000

1500
health is still on track (D/E = 1.61 as of Year End 2017) 1000
500
0
FY2014 FY2015 FY2016 FY2017

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 Sun For The Future

UPCOMING PROJECTS BANGSAWAN

Q1, 2018
Oscar 1 Q2, 2018

SCOD within 2018

“ TSE is committed to grow

portfolio & revenue by PPA 4.6 MW (TSE100%) PPA 8.8 MW (TSE70%)
investing in selective projects.” Q2, 2018 Q2, 2018
JYOSO Oscar 2

PPA 1.25 MW (TSE100%) PPA 8.8 MW (TSE70%)

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Financial Highlights
Result per MW PV Farm - TH PV Farm - JP PV Rooftop - TH Biomass PP
Rev enue (mTHB/MW ) 16 - 18 12 - 14 7-9 30 - 32
Gross Profit (mTHB/MW ) 12 - 14 11 - 12 3-5 19 - 21
EBIT (mTHB/MW ) 12 - 14 3-4 3-4 7-9
Net Profit (mTHB/MW ) 10 - 12 2-3 2-3 6-8
Valuation Assumption PV Farm - TH PV Farm - JP PV Rooftop - TH Biomass PP
Inv estment Cost Per MW (mTHB) < 60 < 120 < 60 < 100
Output (1.XX) 1.41 1.18 1.22 90% Capacity Factor
FIT Per kW h (Base Rate) 3.13 32-36 JPY 6.16 4.24
Adder (THB/kW h) 6.5 - - 0.30
Adder Tenor (years) 10 - 8
GK-TK: CIT 27.45% on 3%
0% for Y1-Y8 0% for Y1-Y8 0% for Y1-Y8
W HT 20.42%
Tax Rate
DI: CIT 27.45% on 100%
20% for Y9 onwards 20% for Y9 onwards 20% for Y9 onwards
W HT 5%
LT Financing Facility Tenor (Years) 10 18 12 11.0
Interest Rate (% p.a.) < 6.00% < 3.00% < 6.00% < 6.00%
Debt Portion 75% 80% - 85% 75% 70%

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