Operator
Good morning everyone and welcome to ECHO's Digital Roadshow. Thank you for having us today. Before we begin, I would like to introduce our executives who will be joining today's presentation. First, Mr. Somkeet, Suthiwanit, Chief Financial Officer. And Mr. Tawathi Ranjarukon, Senior Executive Vice President, Operations Management. We will provide our business performance, growth strategy, and answer your question during the Q&A session. To begin the presentation, may I invite our first speaker, Mr. Tawad, to begin the session.
Today we have the four agenda that show in the slide, the company overview, financial performance and the project update and also the outlook and strategy the first one for the company highlight uh i would like to share with the uh focus of the key uh issue issue that we already done in the first quarter of 2026. the first one for the financial performance profit sharing from investment was allowed 1 500 million baht down by 29 percent year on year and the operating profit was 970 million baht decreasing by 40 percent year on year also and the last one the net profit was 875 million baht decreasing by 76 percent This decrease is mainly due to the lower electricity price and lower generation from some investment in overseas, and no one-time gain from the asset investment in the fourth quarter, comparing to the same period of the last year. However, the lower profit, but we still continue to maintain a strong cash flow. in the annual shareholder meeting we have approved for the dividend of 3.25 baht per share for the second half of last year making the full year dividend at 6.5 baht per share and on the growth site for the APEC. APEC achieved the early COD for Rotat Wind project in May this year, supporting our renewable expansion. And also APEC still have the multi-project under development and construction for the future growth. Four projects are under construction right now with the capacity around 700 megawatt. Another key factor that we achieved in April this year, ECHO signed an agreement with J-Power Thailand to divide 49% stake in KLU and BPU plant in thailand both power plants are under svp program in thailand with total capacity around 378 megawatts this is the part of our strategy to recycle capital and improve portfolio efficiency and the last one for the sustainability echo was included in the dark zone based in class in this 2026 after achieving the highest score among its global peers reflecting our strong ESG performance and long-term commitment to sustainability and in summary although the short-term profit decline our fundamentals remain strong with the clear growth by life and portfolio optimization strategy next slide On this slide, I would like to expand the overall ECO business structure. We have the three key pillars. ECO operate across the entire value chain. Start with the upstream. We focus on securing fuel and infrastructure such as LNG, oil pipeline, and water supply to support the long-term goal. especially for the CDI project which is a joint venture infrastructure and utility company in Indonesia the detail of the CDI will be presented in the following agenda and for the midstream power generation our main our core business in the general in the power generation we operate a diversified portfolio including IPP, SPP, VSTP and Oversea project. Currently about 90 percent of our operating profit come from the power business showing strong asset base. And the last one for the DAO's team we expand into the customer solution and innovation including the PowerPan O&M service and the innovation platform. In the InnoPower company, this is a joint venture among ECHO, EGAT, and large group focused on the clean energy and low carbon transition solution. In the overall, this is the integrated structure enables ECHO to manage risk, diversify income stream and create a new growth opportunity in the market. Next slide. This slide shows our total power plant portfolio. As of May 2026, ECHO has 48 power plants across seven countries. Total capacity is approximately 6900 megawatts and around 6,800 MW already in operation. Our portfolio is well-diversified geographically, including Thailand, USA, Laos, Korea, Taiwan, Philippines and Indonesia. The diversification helps reduce country risk and improve portfolio resilience. In terms of the renewable portfolio, we currently have around 1,600 MW of renewable cost-d representing around 24% of our total cost-d. In Thailand, we operate solar farms, onshore wind farms. In the US, the APEC portfolio includes solar farms, onshore wind farms and battery storage. In Laos, we have the three hydro power plants, and in Taiwan, we have one offshore wind farm. This balance portfolio between conventional and renewable energy support both stability and future growth. And for this slide, we show more detail in our portfolio structure. About 58% of capacity is overseas, while 42% is in Thailand. This reflects our strategy to expand internationally for growth of capacity. Our portfolio includes combined cycle, gas, renewable energy, and the turmoil. the gas-fired power can account for the largest portion at 57 percent followed by the renewable at 24 percent for the uh in terms of the optaker allow 75 percent of our custody is under the long-term power purchase agreement which provides stable cash flow and the most of the remaining 23 percent is sold into the power pool market we also have the power we also had a project under construction in the U.S. through the APEC portfolio also this diversified structure ensure the strong cash flow stability while supporting the long energy transition with the upside gain for the powerful market and the next agenda will present for the financial performance thank you so we start from key financial highlights the profit sharing decreased by 29 percent year on year to 1519 million thai baht
there are several reasons uh union project in taiwan had a lower average electricity selling price per unit this accounting matter does not impact cash flow at all so accounting apply average high in the financial statement this year urine project actually cod and project competition date and start into real operation fate so the auditor review the calculation of the average tariff so that there was a lower average tariff for accounting purpose so that why make profit sharing from urine project lower than last year second one epic project in u.s has lower project sale revenue this water no project sale in the epic so epic only recognize revenue from operating portfolio and some related to the selling project that they recognize face by face The last one, Paju ES, in South Korea has lower revenue due to the sale volume and average selling price. Because in the South Korean market, there were nuclear power plant and coal power plant entered into the system. so the second one operating profit 970 million thai baht decreased 40 percent year-on-year besides the lower operated over the profit sharing from julian epic and pachu that i mentioned earlier The project of UPL in Philippines, they are in the first year of the new PSA contract, which tariff of the PSA contract lower than the tariff in the previous PPA contract. That's why make overreacting profit lower than P1 last year. The net profit for this quarter was 875 million THB, decreased 76% year-on-year because of lower overreacting profit, and a big item in Q1 2025, there was gain from divestment of project in U.S. RISEC and project in Australia Bokalok 2.6 billion THB resulting in high base effect so when compared Q126 have no one-time gain of this divestment. So we move to another slide show operating profit of operating assets. We break down into projects or group of projects. This number excludes coding companies. In Q1 26, Overrating profit was 2158 million THB. Come from domestic assets 34% or 737 million THB. the rate from overseas 66 percent or 1421 million type this quarter we can see that u.s assets have uh quite good performance number one is linden quotient in u.s contribute 15 percent of the total operating asset at 325 million baht hydro group report in rank number two three hydro power plants in lal contribute 312 million thai baht or 14 percent the rank number t also asset from us compass protein also contribute 305 million thai baht or 14 percent these are top tea outperform asset on the right hand side we divide operating asset from three sources the majority come from conventional fuel like gas, thermal. It accounts for 83% of the total operating profit or 1,790 million Thai baht and 7% from renewable and 10% from other businesses. On the right hand side, on the bottom, we divide into business line. Overseas contribute 66% from IPP or power plant. Overseas 61% and other business 5%. In Thailand, contribute 34%, majority come from big power plant or IPP, 25% which are common for BLCP and KPG. The rest are small contributor, small power producer 3%, very small power producer 1%, and other business like escrow service contribute five percent so the same figure 2158 baht we compare with the performance of q1 25 year on year and q4 25 q on q this quarter lower than last year 39 percent year on year but higher than q on q 33 percent the green color represent echo subsidiary and the orange one represent the jv on the right hand side is the same figure but we change the format to to be the business line. Overseas contribute 61 percent for this quarter and followed by IPP 25 percent and SPP VSPP for other both in Thailand and outside Thailand contribute 10 percent next slide we reconcile the operating profit and net profit for q1 we start from the left hand side operating profit of q1 last year one thousand six hundred and nine baht this year 970 baht the difference expanded by operating profit performance lower than last year 599 baht it's because of the performance of qpl in philippines and also yunlin in taiwan and epic in u.s small negative figure 40 million thai baht represent the lower availability payment of the ipp in thailand which are blcp and keko or cannot fall in thailand also so from operating profit 970 million Thai baht we break down the adjustment from accounting perspective for item to become net income 875 baht so the big one minus 500 and 1 million Thai baht is uh unrealized loss from financial instrument mainly from virtual ppa in u.s in both pinnacle 2 project and epic project because this financial instrument has a very long tenure every quarter reporting date the auditor have to adjust the valuation of this financial instrument again the moving forward curve we skip the default tax a small amount to exchange gain loss this quarter we recognize unrealized gain two hundred and nine million baht mainly due to depreciation of Taiwan again US dollar so in echo we have u.s dollar cash on hand so that's why we recognize gain in this quarter the last one gain from risk income this is a part of revenue in ipv in thailand mainly the khanom power plant this year khanom power plant has higher dispatch level that last year that's why they recognize higher gain from risk income so from P&L we move to statement of financial position or balance sheet on the left hand side is asset site asset in year 26 higher than last year around 4 billion thai baht significant item in quarter one there was reclassification between non-current asset to current asset which are the investment of KLU and BPU. Both power plants are SPP in Thailand. ECO agreed to sell 49% of this power plant to Jpower, our statistic partner. While waiting for the closing transaction, the long term asset has been reclassified to be current asset. ready for sale when we get approval from regulator and lenders on about of the cash on hand slightly lower than last year because we use some cash to repay debt and invest in some investment in thailand on the right hand side show liability and equity on the liability side you may see that size of the debt in year 26 slightly smaller than year 25 because we do we did some repayment to the lender around 4 billion 5 billion Thai baht to lower the debt and on the equity side there was increased about 2 billion Thai baht one reason from the translation of the asset outside Thailand and another one is a profit for the quarter one so that why equity slightly bigger from 100 000 to 102 000 billion thai baht we move to financial ratio from consolidated financial ratio current ratio lower than last quarter from 1.6 to 1.3 but still uh no problem for the operation we have threshold about one or one point one time for the gross profit ratio slightly better than last quarter at 18.7 percent net profit per share lower than last year but better than last quarter at 1.66 baht per share debt to equity ratio quite stable about 1.2 palm operating profit slightly increased from last quarter but lower than last year at 22.02 book value per share increased to 194 baht per share last slide for finance part is about echo historical dividend payment our dividend policy the company pay dividend twice a year in apu and october so the target payout ratio about 40 of the consolidated net profit after corporate income tax. ECHO continue to maintain consistent dividend payment policy for shareholders. At the recent AGM, shareholders approved debt a second half 25 dividend payment at 3.25 baht per share. So total dividend in year 25 in total 6.5 baht per share. Based on the closing share price as of 30 April 2026, this represent dividend yield at 5.78%. So back to Kun Pawat.
In this section for the project update, let me start with the CDI as I mentioned earlier that our infrastructure and utility investment in indonesia right now cdi operate in four main area power business water supply tank and jetty service and the last one is the logistics for the power business cdi has about 320 megawatt installed capacity and for the water business It provides industrial water supply with a large capacity reservoir to the end-user in the industrial asset area. CDI also provides tank storage and jetty service for the chemical pan. In the logistics business, right now CDI operates 13 chemical and gas vessels and 135 trucks. for the land transportation the company is expanding through the new 14 solar project and also the gas fire power plant expansion which are in studying and the planning in the water business CDI also planning to add additional reservoir and also the water treatment plans. Additionally, CDI plan to increase the storage tank and the pipeline system to support the expansion of the chemical plan also. And the last one for the enhanced logistic capability to capture the growth in the Indonesia. So in summary, CDI is a key platform for expanding both power power and non-power infrastructure business in Indonesia. Let's move to the APEC Clean Energy. This is our renewable platform in the US. APEC is a private utility-scale renewable developer and operator. ECHO holds around 17% in direct state, coordinating with the ALS infrastructure and power. As of now, APEC has around 57 gigawatts in pipeline, total project around nearly 200 projects. This includes the operating project and the project under construction and also the large development pipeline also. it particularly has allowed 1800 megawatt operating capacity with the mix of solar farm wind farm and also the battery storage the project in pipeline continue to grow strongly and support the long-term renewal expansion so this is a key engine for the echo in the level energy in the us also and this slide show the project that currently under the construction right now we have the four project under construction totaling around 700 megawatt this include the battery storage in texas lucky ford wind farm in virginia emerson creek wind farm in ohio and the last one the cold wind farm in illinois the cod of four project is expected between this year and the next year most of the project have the private ppa contract and the battery storage will operate in the powerful market to ensure the revenue stream the next okay this end of my session thank you
Now we are at the last section, Outlook and Strategy. This section has only one slide. So let's start from the left hand side. On the carpet Outlook, ECHO continue to prepare and develop investment opportunity. We have SongBD team cover both domestic and international opportunity target. budget for annual investment approximately 30 billion thai baht but in 2025 our actual carpet was around 18 billion thai baht so for the investment we focus on this year we focus on the solar farm projects which under thailand second renewable energy bidding allowed to echo was selected for 11 projects with total capacity of 448.10 megawatt both in all 11 projects are in Thailand but in different provinces so the company work at this time the focus work on the PPA signing PPA of three solar projects have been cited the remaining a project under process, we expect to have its size by this quarter, I mean quarter two of 2026, and then we will plan for construction. And for natural gas and renewable energy investment opportunity, we look into the long-term secure level new project but we not focus on the clean field now we looking for the operating one for both natural gas and renewable power plant on the right hand side in In 2026, this year we have seven months remaining. We aim to further improve our earning quality and create more stable cash flow with several ideas. The first one we have full year revenue recognition from the QPR project in Philippines under the new PSA. even the tariff not as high as the previous contact but it's still a good contact and good plan we will have full year level new for this one second one for pinnacle to project in u.s one solar farm and one wind farm that we acquired that last year it will become full year level new recognition also this one should be contribute to echo more than last year figures and then for linden have very good performance you can see in the quarter one day the top contributor to echo so we increase the stake from 28 to 38 so we will recognize higher for featuring from linden then and also other complex also good performance and we have some hope in CDI project that expand businesses in Indonesia and also we still do asset recycling do divestment when the opportunity come to our portfolio and echo also continue to view long-term growth opportunity by looking for the new business like industrial estate or eerie project in eec area and also we looking for other related business that are related to the energy business that we already have investment and also in the area in the seven countries that we already have in project in those countries so overall we think that we will improve our performance in next quarters Thank you for your continued interesting and support.
Operator
If you have any further questions, please feel free to contact Investor Relations using the contact details provided at the end of the presentation. Thank you and have a good day.
