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Strictly Private & Confidential

Opportunity Day

Gunkul Engineering PCL.

Aug 31, 2011


Opportunity Day

Gunkul Engineering PCL.

Aug 31, 2011


2

Contents1. Gunkul Business

Conventional BusinessRenewable Energy BusinessEPC Opportunity(Up to date & progress)

2. Gunkul Performance for Period 30/06/2011

3. 2011 Gunkul Backlog

4. Q&A


3

1. Gunkul Business&

Group of Company


4

Vision: "To become Thailand's number one manufacturer and provider of equipment for electrical systems and renewable energy systems that meet and satisfy customers' need and concurrently maximize stakeholders' return"

GUNKUL Office at Dusit, Bangkok (since 1982)

Power Producer BusinessBecome Manufacturer (since 1992)

Entering to Renewable Energy Business

(since 2009)Established in 1982 as an Electrical Equipment Trader (30th Anniversary last month))

To become the leader in supplying and manufacturing electrical products, GKA and GKP as Electrical Product Manufacturer were established in year 1992 and 1998.

With opportunity to expand to Renewable Energy Business, GPG was setup in 2009.

In 2010, GPG owned the PPAs of Solar Power Plant with 30.9 MW capacity which the first 3.0 MW Solar Power Plant has been COD since 4th Jan 2011. Another 4.4 MW Solar Power Plant is under construction expected to COD with in August 2011. The remaining 23.5 MW capacity will be finished construction and ready to COD within 2012.

Become the listed company since Sep 19, 2011. (IPO Price = 5.4 baht, Price as of Aug 4th, 2011 = 18.8 baht)

In 2010, GPS which owned 26 MW PPA of Solar Power Plant was acquired by GUNKUL. These solar power plants are expected to COD within Sep 2011.


5

Electricity plants:Wind turbine componentsSolar panel components

A

Distribution lines:Cables and accessoriesCapacitorsFuse and switchesGroundingHardware and connectorsInsulatorsLightning protectionLive part coversMaintenance equipmentMetersPreformedTools and instrumentsTransformers

D

Transmission lines:Cable and accessoriesFuse and switchesHardware and connectorsInsulatorsLightning protectionMaintenance equipmentTools and instruments

B

Substation:Battery and chargersCapacitorsGroundingMaintenance equipmentMetersTools and instrumentsTransformers

C

Low voltage lines:CapacitorsExplosion proof productsFuses and switchesGroundingHardware and connectorsInsulatorsLightning protectionMetersPreformedStreet lighting and controlTelephone hardware

E

From the upstream to the downstream, GUNKUL offers full range of products and services (as many as 5,000 electricity items). Around 300 products are produced in house.

High Light Products


6

Why Renewable Energy?

Global Warning IssueInsufficient Oil and Gas to Supply

According to the research, oil will be out within next 46 years and natural gas will be out within 60years, given that consumption rate is the same as consumption rate.Global warming is caused by increased concentrations of greenhouse gases in the atmosphere,resulting from human activities such as deforestation and burning of fossil fuels. The more peopleconsume the energy, the more serious of issue become.Those are the reason why WE NEED RENEWABLE ENERGY!!!!


7

G.K. Assembly

(Manufacturer)

G.K. Power Product

(Manufacturer)

K.N.P. Supply

(Distributor)

99.99%

Gunkul Power Gen

(Power Producer)

99.99%

99.99%

99.99%

Gunkul Engineering Plc.

GUNKUL is a marketing and trading arm of the group. GUNKUL sources products from manufacturers both outside and inside the group and then caters to its customers which consist of foreign, private (general customers, contractors, factories and end-users) and government entities.

Similar to GUNKUL, KNP is a marketing and trading arm. However, KNP will mainly focus at government agencies such as the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA).

GKA and GKP are manufacturing arms and supply their products to GUNKUL and KNP.

--

nde

KNPGKA

GKP

Manufacturers

ElectricalManufacturers

GUNKUL

Government

Private

Foreign

Distributors Customers

Subsidiaries

GPG

Power Producer

GPS

G.Power Sources

(Power Producer)

98.98%


8

Conventional Business


9

Manufacturing & Trading


10

Strong Business Platform

CentralBidding

Individual Purchasing

OrderCharacteristics

Barrier to entry GUNKUL

High qualification requirements i.e. requiring the product to meet 3 industrial standards

Continuously order for replacement & expansion

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,

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

For those contractors awarded turnkey projects from government, they will also

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

Accessible and knowledgeable 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

over

nmen

t2.

Priv

ate

3. F

orei

gn


11

25 Years Plan Market Size of MyanmarPower Systems Potential Market

PeriodGeneration

(1)Transmission

(2)Distribution

(3)GrandTotal

Total(2)+(3)

Market share10%-12%

Capacity Budget Length Budget Budget Budget Million $/Per five Year

Million $/ Per YearYear MW Million $ Miles Million $ Million $ Million $

2007-2011 848 978.00 1,926 582.15 309.5 1,869.65 891.65

2012-2016 5,100 6,120.00 1,576 326.71 1,296 7,742.71 1,622.7135 40 US.M.

Per Year

2017-2021 3,342 4,010.00 1,928 606.65 1,203.1 5,819.75 1,809.75

2022-2026 5,650 6,780.00 675 255.94 1,295.8 8,331.74 1,551.74

2027-2031 6,370 7,644.00 140 27.96 2,229.5 9,901.46 2,257.46

Total 21,310 25,532.00 6,245 1,799.41 6,333.9 33,665.31 8,133.31


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Power Systems 25 Years Plan Map


13

Equipment Business

Under its conventional business, products are mainly classified into 5 categories according to their usage:

1. Protective and control equipment

2. Cables andaccessories

3. Equipment and tools

4. Street lighting

5. Renewable energy

Owned Brands / Imported BrandsProducts in General Usage in Electricity Stream

A

DB C E

DB E

DB C E

E

Note: Electricity generation & plant Transmission lines Substation Distribution lines Low voltage lines A B C D E

GUNKUL, PIGMAN, Topweld, ALCAD, GE, SEECO and Thermoweld

GUNKUL, PIGMAN, GK

ZIMLUG,ZIMTAP and TYCO

IZUMI, DILO and Sensor LINK

GUNKUL and GK


14

Financial Support from SCB for Growth of Myanmar Business

Meeting between SCB and Myanmar Ministry of MOPE2 arranged by GUNKUL

Gunkul Engineering PCLwill receive 50 Million USDL/C from SCB to expandbusiness in Myanmar


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Renewable Energy Business


16

Government and Wind, Solar Energy


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Power Producer Business

Power Producer BusinessRenewable Energy Business


18

GPG Solar Power BusinessPPA 30.9 Mw


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for growth and cash flow

Schedule for COD of Solar Power Projects (MW)

.9

.9

.0

.0

Dec Sep 1 May Jul Aug

Project I Project I Project II Project III Project IV Project V

COD4-1-2011

COD8-09-2011


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Summary of Power Purchasing Agreement of Gunkul Powergen

Project I Project II Project III Project IV Project V

Capacity 3.0 MW 4.4 MW 8.0 MW 4.5 MW 8.0 MW 3.0 MW

Location Petchaboon Pichit Nakorn Nayok Pathum Thani

PPASigning Date 28 June 2010 16 July 2010

Expected COD Date Dec 2010 September 2011 By May 2012 By July 2012 By August 2012

Investment THB 340 mn ~ THB 110 mn per MW

Technology

Selling price ~ THB 3.0 per kWh

Adder THB 8.0 per kWh for 10 years since start of COD

BOI Tax Exemption Year 1st - 8st : 100%, 9th 13th : 50%


21

Inspection Quality 3 MW Chondan, Petchaboon : 11 March 2011


22

0.00

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

Electricity 3 MW (at Plant meter)

3 MW Solar Power Plant

Diff +1.67 MB(5.%)

Accumulated Value= 33.67 MB

Accumulated Value (Std)=32.00MB

54- 54Out Put Kw (h)

54 54 54 5454 54 54


23


Construction Progress Chondan Phase II 30%

Sub.4(1MW)

Sub.6(1MW)

Sub.7(1MW)

COD: August 2011Module: Suntech (c-Si)Inverter: Schneider ElectricFinancial Support: KTBInvestment: 460 MTHB


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PV modules and

StructureArray boxes Inverters Transformers

and Cables MV boardSelling point

and Civil Work

Technology and Scope of Work


25

Power Producer BusinessProject progress

COMPANY LOCATION CAPACITY FORCAST TO COD REMARK

GPG Petchaboon 3.0MW 4/1/2011 -

GPG Petchaboon 4.0 MW 8/9/2011 -

GPG Wichianbury 8.0 MW May ,2011 Approved a loan from the bank (SCB) on August 30, 2011.

GPG Nakorn Nayok 8.0 MW August ,2011


26

Power Producer BusinessProject progress

COMPANY LOCATION CAPACITY FORCAST TO COD REMARK

GPS 6.5 MW 1/11/2011

GPS 6.5 MW 1/11/2011

GPS 6.5 MW 11/11/2011

GPS 6.5 MW 4/01/2012


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.. (4.5MWp)

:


28

:

2 (4.5MWp)

2 (4.5MWp)2 (4.5MWp)

2 (4.5MWp)

.. (4.5MWp)


29

:

2 (4.5MWp)

2 (4.5MWp)2 (4.5MWp)

2 (4.5MWp)

.. (4.5MWp)


30

GPS Solar Power BusinessPPA 26.0 Mw


31

Project I Project II Project III Project IV

Capacity 6.5 MW 6.5 MW 6.5 MW 6.5 MW

Location Tasang, NokhonSawan

TaKeed, Nokhon Sawan

Dongkorn,Chainat

Klongluang,Pratumtani

SCOD Nov 1, 2011 Nov 1, 2011 Nov 11, 2011 Jan 4, 2012

Selling price ~ 3 THB/kWh

Adder THB 8.0 per kWh for 10 years since start of COD

BOI Tax Exemption: Year 1st - 8st : 100%, 9th 13th : 50%

Import tax: 0%

Technology C-Si and Central Inverter

GPS Summary of Power Purchasing Agreement of Grand Slam Project


32

be a new source for growth and cash flow

Schedule for COD of Solar Power Projects (MW)

Project I Project I Project II Project III

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6.5

Tasang, Nokhon Sawan

TaKeed, Nokhon Sawan

Dongkorn,Chainat

Klongluang, Pratumtani

6.56.5

13.06.5

19.5

6.5

26 MW Solar Power Project is on the

process of seeking strategic partner

COD1-11-2011

COD1-11-2011

COD11-11-2011

COD04-01-2012November 2011


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26 MW Solar Power Plant

PV modules and

StructureArray boxes Inverters Transformers

and Cables MV boardSelling point

and Civil Work

Technology and Scope of Work


34

for growth and cash flowSchedule for COD of Solar Power Projects (MW)

56.9

.0

Dec Jul 1 May Jul Aug 1

40

45

50

55

60

Sep 2011

4.43.0

7.4

26

33.48.0

41.44.5

45.98.0

3.0

Project I Project I Project II Project III Project IV Project V Project VI



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Plant Layout for 26 MW GPS (4x6.5MW)

TakeedTasang

Dongkon Klong 4


36

:

. . (6.5MWp)


37

:

1250 & 625KVAR 1250 & 625KVAR

. . (6.5MWp)


38:

. . (6.5MWp)


39

:

MW1, 2, 3

MW1, 2, 3 MW1, 2, 3

MW1, 2, 3

. . (6.5MWp)


40

. . (6.5MWp)

:


41:

e-flex array box

22 KV

. . (6.5MWp)


42

:

. . (6.5MWp)


43

. . (6.5MWp)

:


44

:

22 KV 22 KV

. . (6.5MWp)


45:

array box

. . (6.5MWp)


46

EPC Opportunity


47

EPC Opportunity

Opportunity from being a One Stop Service of Solar EPC Contractor

Renewable Energy Business

Signed PPA COD Scheduled

(MW)

PPA of 700 MW scheduled to expire in the upcoming yearsMarket Value around 70 Billion Baht

Total PV solar PPA application of 1,417.35 MW With 700 MW of PPA signed

VSPP PPA Application Status

Source: EPPO, as of 31 December 2010

Approved waiting to sign 70 MW

PPA Signed

700 MW

COD 26.29 MW

120120

132.8

29

83.9

241.4

2010andbefore

2014201320122011


48


Experiences of Solar Power PlantTotal Solution for CustomerPrice competitiveOperation and Maintenance

EPC OpportunityRenewable Energy Business


49

8 MW solar power projectProject Owner: Solartar (Yanhee, Ratchburi Holding)Project Location: SupanburiScope: EPC Contract Value: 752 MTHB

Project ScheduleSubmit date: Oct. 22, 2010Finish clarification: Feb. 25, 2011LOI: April 01, 2011Construction period: Apr.- Oct. 2011


Participating more than 6,500 MTHB

EPC OpportunityRenewable Energy Business


50


Future Road Map

2008-2010 2011 Onwards

Start up Growing and expand Business

Take over GPS for 26 MW

Won 8 MW Solar Power Plant for scope EPC

In house Supporting StructureManufacturer

Finish construction of Solar Project for GPG and GPS with total 56.9 MWFinish construction of the first Wind Farm 6 MWBecome the number one leader of Solar Plant EPC contractorFinish the First Solar power plant outside Thailand

EstablishGPG Start to do power producerbusiness

2011 :

To be a power producer Total solution for Renewable Energy Business

Supply and Installation Wind Turbine 2 x 1.25 MW. for EGAT

2008:

Construction of 3 MW solar power plant

2010 :

2012 :

Solar

Wind

Hydro

Biogas


51

2.Gunkul Performance for period 30/06/2011


52

103 108

149 171

303

773

0

100

200

300

400

500

600

700

800

900

1000

Q2/2010 Q2/2011

Government Private Foreign Solar

2011 Revenue Breakdown

revenue

Revenue Breakdown by Type of Customer

443719

451 448

108

391

285

249 240

171

704 362

164

600

773

28

0100200300400500600700800900

1000110012001300140015001600

Q2/2011Government Private Foreign Solar

Revenue Breakdown (Q2/2010 and Q2/2011)

1,538

1,366

864

1,2881,080

555

1,080THB (MN)THB (MN)

28

30 110

Net Profit Net Profit


53

Revenue from Trading and Manufacturing

1158

831

406

987 980

380

535458

302

100

19.624.1

25.5

28.14

28.46

0

5

10

15

20

25

30

0

200

400

600

800

1000

1200

1400

Q2/2011

Rev.f rom Trading Rev.f rom Manu. Gross Margin(%)-RHS

Revenue vs. Overall Gross Margin Net Profit vs. Net Profit Margin

188

123

54

123110.186.7

8.9

6.2

9.5510.18

0

2

4

6

8

10

12

0

20

40

60

80

100

120

140

160

180

200

Q2/2011

THB(MM)

Net Profit Net Profit Margin (%)

THB (MN) %


54

Our Financial Flexibility

Low D/E provides flexibility in doing business

368

75 74 153 147

121

276140

43117

117

4159

66131

69

0

200

400

600

800

1000

1200

1400

1600

1800

Q2/2011

AP ST-trade related liabilites LT-int.bearing Other liabilities

D/E Ratio

0

0.5

1

1.5

2

2.5

Q2/2011

2.4

0.7 0.70.58

1.42

GUNKUL

9.2

THB (MM)


55

Growing up Balance Sheets

Balance Sheets

Unit : M.THB

Current Asset

NonCurrentAsset

CurrentLiabilities

Non Current Liabilities

quity

As of Dec 31,2010 As of Jun 30,2011

754.48

1,035.23651.46

6.04

1,132.21

Total Asset 1,789.71

1,743.72

1,172.97

1,692.52

19.90

1,204.26

Total Asset 2,916.69


56

Financial Ratio

Financial Ratio Analysis

RatioConsolidated Separate Financial

Statements

Dec 31,10 Jun.30,11 Dec 31,10 Jun.30,11

Current Ratio 1.59 0.69 1.99 0.79

Quick Ratio 1.06 0.92 1.57 0.64

Account Receivable Turnover 3.25 3.38 3.29 3.45

Inventory Turnover 2.69 2.11 5.64 4.71

Fixed Asset Turnover 2.55 2.30 64.34 84.55

Total Asset Turnover 0.72 0.74 0.87 0.91

Cash Flow LiabilitiesTurnover 32.97% 22.01% 49.67% 4.55%

Debt Management Ratio 0.37 0.59 0.29 0.52

Gross Margin 28.45% 26.03% 21.33% 21.43%

Net Profit Margin 9.56% 11.66% 6.37% 14.12%

Return on Asset 6.88% 7.56% 5.55% 9.98%

Return on Equity 10.88% 18.30% 7.86% 21.00%

Profitability Ratios

Asset Management Ratios

Liquidity Ratios


57

3.Gunkul Backlog & Sales Forecast 2011


58

Backlog as of as at 30-08-2011

Revenue of THB 1,652 m. is secured for 2011 (exclude private Sales)

THB (MN)

In general revenue from Government from the past 5 years had been recorded around Baht 450 mn.

439

752

150


59

Sales Growth - 2011

Forecast

EPC/ SOLAR

GPG GPS >50%

Foreign Special Project

Privatecontractor

GovernMent

Total

3 MW(4

Jan,11)

4.5 MW(1 Sep,11)

26 MW(15 Oct,11)

Year 2010

-Revenue - - - - 600 94 146 448 1,288

-Profit Margin - - - - 22.94% 28.85% 50.66% 26.83%

Year 2011

Forecast 752 MTHB

55MTHB

15MTHB

25MTHB

Growth80%

Growth80%

Growth80%

Growth10%

Growth100%

Actual - Q1&Q2 /2011

- 28 - - 773 171 108 1,080

(THB : MN)Renewable Energy Business Conventional Business


60

1. Special Project 2011

Banglang Hydropower Project

Project Owner: EGATScope: EPSContract price: 517 M THBTender open on July 20, 2010Submit date: Nov. 17, 2010Finish final clarificationSigning Contract: September 15, 2011

Sale value for 2011Advanced payment: 10 % of contract price Q4/54


61

2. Wind Turbine Project 2012

Wind Turbine Generation Project Stage IIProject Owner: EGATProject Location: LamtaklongWind Turbine: 12 x 1.5 MWBudget: 872.180 MTHB (1,700 MTHB)

Project ScheduleEstimate submit: Quarter 4/2554Estimate sign contract: Quarter 3/2554Delivery: Quarter 2/2555Installation and finish: Quarter 3/2555

Sale value for 2011Advanced payment: 10 % of contract price Q4/54


62

2. Solar Project Sales

3 +5 MW Burirum Solar Project

Project Owner: Project Location: BurirumScope: EPC Partner: Solar Frontier, Schneider ElectricCOD: Jul 31, 12

Present statusAward Contract: September, 2011

Project Information


63

3. Solar Project Sales

8 MW Solar Project

Project Owner: Project Location: LobburiScope: EPC Partner: Solar Frontier, Schneider ElectricCOD: April , 12

Present statusSubmit bids: August 19, 11Price is higher than competitors

Next stepFind out win solution

Project Information


64

Q & A

Documents

Gunkul Engineering PCL.gunkul.listedcompany.com/misc/presentations/oppday_q211.pdf · Battery and chargers Capacitors ... ALCAD, GE, SEECO and Thermoweld GUNKUL, ... Gunkul Engineering