Gulf Energy Development Public Company Limited Q1 2020 Earnings Presentation 19 May 2020 Q1’20 Business Updates Q1’20 Financial Performance Appendix Power projects in Thailand Construction progress as planned for GSRC while GPD is expected to start construction in Q3’20 Gulf SRC Gulf PD Installed Capacity: 2,650 MW 2,650 MW Shareholding: 70% GULF (75% dividends) 70% GULF (75% dividends) 30% Mitsui & Co. 30% Mitsui & Co. Location: WHA Eastern Seaboard Industrial Estate 1, Rojana Rayong 2 Industrial Park, Chonburi province, Thailand Rayong province, Thailand Fuel Type: Gas-fired Gas-fired SCOD: Units 1 and 2: 2021 (1,325 MW) Units 1 and 2: 2023 (1,325 MW) Units 3 and 4: 2022 (1,325 MW) Units 3 and 4: 2024 (1,325 MW) Status: Construction progress: 59.9% • Financial close in Nov 2019 with long-term loan facilities of THB 36,000 million • Construction expected to commence in Q3'20 3 New power project acquisitions Acquisition of two projects will increase equity capacity by 875 MW Hin Kong Power Burapa Power Contracted Capacity: 1,400 MW 540 MW Consortium: 49% GULF 35% GULF 51% RATCH Group 65% NPS Location: Hin Kong subdistrict, Khao Hin Son subdistrict, Mueang district, Phanom Sarakham district, Ratchaburi province, Thailand Chachoengsao province, Thailand Fuel Type: Gas-fired Gas-fired PPA: Signed with EGAT for 25 years Signed with EGAT for 25 years GSA: Under negotiation Signed with PTT for 25 years SCOD: Unit 1: Mar 2024 (700 MW) Nov 2027 Unit 2: Jan 2025 (700 MW) Status: • Expect to get EIA approval within 2020 • Expect to get EIA approval within 2021 • Start construction by 2021 • Start construction by 2025 4 Commercial operation of GCG GCG achieved commercial operation on 1 March 2020, adding 25 MW to GULF’s portfolio Gulf Chana Green (GCG) Installed 25 MW Capacity: (100% interest) Contracted 20.6 MW Capacity: Location: Chana district, Songkhla province, Thailand SONGKHLA Fuel Type: Parawood Tarriff: EP + Ft + THB 1.3/kWh adder for 7 years PPA: Signed with EGAT for 25 years EPC: Signed with STEC In operation COD: Mar 1, 2020 Under construction/ Project Cost: THB 2,570 million development 5 Infrastructure and utilities projects in Thailand New projects progressing in line with plan Map Ta Phut Ph.3 Laem Chabang Ph.3 M6 & M81 Motorways One Bangkok Consortium: 70% GULF 40% GULF 40% GULF 33% GULF 30% PTT Tank Terminal 30% PTT Tank Terminal 40% BTS Group 33% Mitsui & Co. 30% China Harbour Engineering 10% STEC 33% TGES 10% RATCH Group Investment Type: PPP PPP Net Cost PPP Gross Cost Private Authority: Industrial Estate Authority of Thailand Port Authority of Thailand (PAT) Department of Highways (DOH) - (IEAT) Scope: • Ph.1: Land reclamation • Design, build, O&M F1 and F2 • Ph.1 Design & construction • Electricity Distribution • Ph.2: LNG terminal Terminals ➢ Toll collection system, traffic • District Chilled Water Distribution (up to 10.8 MTPA) • 4 MTEU/year management & control system • Ph.2 O&M Construction • Ph.1: 3 years (2020 – 2023) • F1: 3 years (2022 – 2024) 3 years (2020 – 2023) 2020 – 2024 Period: • Ph.2: 4 years (2023 – 2027) • F2: 3 years (2026 – 2028) Operation Period: 30 years 35 years 30 years 30 years Investment Cost: THB [42.9] billion THB 30.0 billion [to be disclosed] THB 3.6 billion Status: • PPP contract signed • Under negotiation with PAT • PPP contract signing expected in • Under EPC contract bidding • EPC contract expected to sign in early June 2020 • EPC contract signing expected May 2020 between Q2’20 – Q3’20 • Construction starts (Q3’20) 6 Power projects in Vietnam Projects expected to be included in PDP7 (revised) and PDP8 in phases Mekong Wind LNG-to-Power Installed • Gas-fired power plant: up to 6,000 MW up to 310 MW Capacity: • LNG terminal: up to 6 MTPA Shareholding: 95% GULF TBA 5% TTC Group Location: Ben Tre Province, Vietnam Ca Na, Ninh Thuan Province, Vietnam Fuel Type: Offshore wind Gas-fired Status & SCOD: • Phase 1 (30 MW): SCOD May 2021 • Phase 1 (1,500 MW): Under construction Expected to be included in PDP7 within Q2'20 • Phases 2-3 (98 MW): SCOD Oct 2021 • Phases 2-4 (4,500 MW): PPA signing expected in July 2020 Expected to be consider to include in PDP8 within [Q1’21] • Phases 4-8 (182 MW): Under MOIT consideration to be included in PDP8 within [Q1’21] 7 Projects in Oman Potential to expand business in Duqm SEZ DIPWP Potential Projects Installed Power: approx. 326 MW • GULF has plans to increase equity stake in Oman projects 3 Capacity: Water: approx. 1,667 m /hour and restructure shareholding to directly hold Marafiq shares Location: Duqm Special Economic Zone (Duqm SEZ), Oman • Marafiq has exclusive rights to provide utility services in Fuel Type: Gas/Diesel Duqm SEZ for 25 years PPA: Signed with Duqm refinery for 25 years (+5 years renewal) • Opportunities to develop and operate future utilities projects in Duqm SEZ with Marafiq: Status & SCOD: 2021 - 2022 SCOD: Construction progress: 66.1% Shareholding 45% GULF Structure: 55% OQ group (Marafiq & Oman Oil Facilities Development) Power Business Water Business Duqm SEZ Gas Business 8 Power projects in Laos Hydro power projects in Laos under tariff negotiation Hydro Power Projects 1 Pak Beng (912 MW) Pak Lay 2 (770 MW) 3 Sanakham Installed 2,366 MW in total (3 projects) (684 MW) Capacity: • Pak Beng (912 MW) • Pak Lay (770 MW) • Sanakham (684 MW) Shareholding: GULF plans to hold 30% - 35% equity interest in each project Location: Mekong River, Lao PDR Fuel Type: Run of river hydro power plants SCOD: 2027 - 2030 Status: Under tariff negotiation 9 Impacts from COVID-19 Limited impact on GULF’s businesses from COVID-19 Limited impact on electricity sales Most of Gulf’s power generation capacity are secured with EGAT’s PPAs while industrial users are diverse in sectors Food & Petchem & Beverage, Chemicals, 6% 6% Electronics, Textiles, 5% 8% Steel, 3% 87% Packaging, 13% 9% Others, 9% Construction Material, 10% Automotive, 45% Industrial Users Limited impact on project progress Projects under construction & development in Thailand still progress as planned Mekong Wind Phase 1 (30MW) experienced a slight delay with SCOD postponed to May 2021 while tariff is maintained at 9.8 c/kWh 10 Q1’20 Business Updates Q1’20 Financial Performance Appendix Total revenues Full quarter recognition of projects that commenced operations in 2019 boosted up revenues YoY Unit: THB million Total revenues in Q1’20 was THB 7,639 million • QoQ: 8,670 MB → 7,639 MB (-11.9%) primarily from: +1.9% YoY 1) Decrease in sales revenue from THB 7,920 mil to THB 7,782 mil (-1.7%) -11.9% QoQ mainly due to: 8,670 • Planned maintenance shutdown (B-inspection) of GVTP under GMP for 49 7,639 18 days in February 2020, resulting in loss of EGAT revenue 7,496 617 84 37 • EGAT’s modification of 500kV transmission line in Rayong zone in March 47 2020, resulting in lower offtake from EGAT from 90 MW to 40 MW for 10 895 87 days from 6 SPPs (GVTP, GTS1, GTS2, GTS3, GTS4 and GNLL2) under 77 GMP. Nonetheless, the 6 SPPs still received full Capacity Payment (CP) and EGAT will make up the shortage for the remaining of the year. 2) Share of loss mainly from GJP due to unrealized FX loss 7,920 7,782 6,477 • YoY: 7,496 MB → 7,639 MB (+1.9%) from: 1) Increase in sales revenue from THB 6,477 mil to THB 7,782 mil (+20.2%) mainly from: • full quarter revenue recognition of all 12 SPPs under GMP in Q1’20 (vs. 10 SPPs in Q1’19) (267) • full quarter revenue recognition of 2 solar power projects in Vietnam (GTN1 and GTN2) Q1'19 Q4'19 Q1'20 • GCG biomass power project, which commenced commercial operation Sales revenue Management fee Share of profit Other income on 1 March 2020. 2) Nonetheless, increase in sales revenue was offset by share of loss mainly from GJP due to unrealized FX loss Note: 1/ Consolidated sales revenue include electricity and steam sales from SPPs under GMP, electricity sales from VSPPs under Gulf Solar, electricity sales from GTN1 (from November 2019 following stake increase to 90%) and GTN2 2/ Share of profit include profit (loss) from GJP, GTN1 (from March – November 2019 before increasing the stake to 90%), DIPWP, Gulf WHA MT and BSE 3/ Consolidated other income include dividend income, interest income and other income 12 Share of profit from GJP (40%) Share of profit from GJP declined YoY from planned shutdown and unrealized FX loss Unit: THB million Share of profit from GJP (excl. FX) in Q1’20 was THB 619 million • QoQ: 470 MB → 619 MB (+31.7%) primarily from: 1) Fewer number of plants undergone major overhaul (C-inspection of GCRN) -5.5% YoY in Q1’20 vs. C-inspection of 3 SPPs (GKP1, GTLC and GNNK) in Q4’19 895 2) Higher Availability Payment (AP) from both GNS and GUT despite B-inspection of GUT in Q1’20 240 620 3) Higher electricity, steam and chilled water demand from IUs in Q1’20 150 +31.7% • YoY: 655 MB → 619 MB (-5.5%) from: 655 QoQ 619 470 1) Major overhaul (C-inspection) of GCRN and B-inspection (18 days) of GUT in Q1’20 while there were no major maintenance of power plants in Q1’19 2) EGAT’s 500kV transmission line modification in Rayong zone in March 2020, resulting in lower offtake from EGAT from 90 MW to 40 MW for 10 days for (872) GNLL Share of loss from GJP (incl.