Strictly Private & Confidential

Gunkul Engineering PCL

Opportunity Day Q3/2012
November 29, 2012

Presentation Outline
Strictly Private & Confidential

1. Company Overview

2. Operating and Financial Performance

3. Strategic Direction and Growth Strategy

Who is GUNKUL
Strictly Private & Confidential

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 Thailands renewable energy arena
Entered into renewable energy business and achieved the set up and supply of Thailands first wind turbine to EGAT

Founded in 1982 as an electrical equipment trader

Set up our own manufacturer to produce electrical products

Expanded its trading business to neighboring countries Myanmar, Lao PDR, and Vietnam Set up the first offshore office in Yangon, Myanmar

1982

1992

1997

2009

Since 2010

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)

Source of Revenue
GUNKULs future revenue will be generated from the 3 main businesses, each of which benefits from GUNKULs integrated business model and over 30-year experience and proven track records in Thai energy industry Solar and wind power producer EPC contractors for power plants Conventional business Conventional business

Business Structure
Strictly Private & Confidential

We have structured our business into three business units1) Conventional BU, 2) EPC Contractor BU and 3) Power Producer BU, each of which leverages expertise of each other

1
GUNKUL Group 60% Public shareholders 40% GKA GKP

Conventional Business Flow

Distributor
KNP GUNKUL

Manufacturer

Customer
Govt Private Foreign

External Manufacturers

GUNKUL PCL

2
100% 100% 40%

EPC Contractor BU Flow

Main Contractor

Supplier
GKA
Manufacturing Electrical Products

Customer
GPG & GPS

KNP
Supplying Electrical Products
100%

G-Power Source (GPS)

Generating Electrical Power
100% 70%

GKA GUNKUL GKP WED Other power producers

GKP
Manufacturing Electrical Products

GUNKUL Powergen (GPG)

Generating Electrical Power

Wind Energy Development (WED)

Generating Electrical Power

Power Producer BU Flow

Solar 60% 40%

GPS (26.0 MW)

100% Solar

GUNKUL
70% 30%

GPG (30.9 MW)

Wind

EGAT & PEA (Electricity Authorities)

WED (60 MW) 3

Conventional BusinessProduct Offering

Strictly Private & Confidential

GUNKUL offers a wide range of products and services from upstream to downstream of the electricity supply system (over 5,000 electricity items)
Electricity plants: Wind turbine components Solar panel components Substation: Battery and chargers Capacitors Grounding Maintenance equipment Meters Tools and instruments Transformers Distribution lines: Cables and accessories Capacitors Fuse and switches Grounding Hardware and connectors Insulators Lightning protection Live part covers Maintenance equipment Meters Preformed Tools and instruments Transformers

Transmission lines: Cable and accessories Fuse and switches Hardware and connectors Insulators Lightning protection Maintenance equipment Tools and instruments

Low voltage lines: Capacitors Explosion proof products Fuses and switches Grounding Hardware and connectors Insulators Lightning protection Meters Preformed Street lighting and control Telephone hardware

High Light Products produced in house

Conventional BusinessOur Customers

Strictly Private & Confidential

GUNKULs capability to serve all needs

Central Bidding Individual Purchasing Order

Customers Characteristics
High qualification requirements i.e. requiring products to meet 3 industrial standards Continuously order for replacement & expansion

Barrier to entry

GUNKUL

1. Government

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) Moderate to high barrier to entry For those contractors awarded turnkey projects from government, they will also be required to meet the governments quality specifications. Accordingly, suppliers such as GUNKUL will face the same circumstances as selling to government segment High barrier to entry Accessible and knowledgeable in this type of customers Funding capability

Approval for vender list Offers approx. 300 owned product items to this segment, GUNKULs manufacturing facilities have put the Company at advantage Expertise in sourcing quality products to fulfill remaining categories 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

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

2. Private

Myanmar Electric Power Enterprise (MEPE), Yangon Electricity Supply Board (YESB), Electricite Du Laos (EL)

3. Foreign

Might come in a form of project based needs, therefore, this segment may require diverse kinds of products at a time

Long established relationship and network Fully understand characteristic of customers Well recognized and supported from financial institutional

EPC Contractor Business

Strictly Private & Confidential

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 BU Flow
Supplier
GKA GUNKUL GKP
Sub Contractor

Business Partner
Customers
GPG & GPS WED External Customers

Main Contractor

Project Reference
Project Owner 1) 2) 3) 4) 5) 6) Gunkul Powergen (Phase 1) G-Power Source (Phase 1) Gunkul Powergen (Phase 2) G-Power Source (Phase 2) CK & Sun Solar Power Plant Solatra Solar Power Plant Total MW 4.4 19.5 23.5 6.5 8.0 8.0 73 Status Complete Complete Under Construction Under Construction Under Construction Under Construction

EPC Contractor BusinessPipeline projects

Strictly Private & Confidential

Plant Information
Project Owner
1) 2) 3) 4) Gunkul Powergen (Phase 1) G-Power Source (Phase 1) Gunkul Powergen (Phase 2) G-Power Source (Phase 2) Total Contract Value Date of Completion Technology Selling price Adder BOI Tax Exemption ~ THB 3,000 mm Q4, 2012. Current work progress 72% Thin Film CIS, Crystalline Silicon ~ THB3.0 per kWh THB8.0 per kWh for 10 years since start of COD Year 1st - 8st : 100%, 9th 13th : 50%

MW
4.4 19.5 23.5 6.5 54

Status
Complete Complete Under Construction Under Construction

EPC Contractor BusinessPipeline projects

Strictly Private & Confidential

Project A CK & Sun Solar Power Plant 8 MW (Bureerum)

Plant Information
Contract Value Date of Completion Technology Selling price Adder BOI Tax Exemption THB736 mm Q4, 2012. Current work progress 72% Solar Frointer Thin Flim CIS, Schneider electrical equipment system ~ THB3.0 per kWh THB8.0 per kWh for 10 years since start of COD Year 1st - 8st : 100%, 9th 13th : 50%

Project B Solatra Solar Power Plant 8 MW (Supanburi)

Plant Information
Contract Value Date of Completion Technology Selling price Adder BOI Tax Exemption 752 Million Baht Q4, 2012. Current work progress 85%

Solar Frointer Thin Flim CIS, Schneider electrical equipment system

~ THB 3.0 per kWh THB 8.0 per kWh for 10 years since start of COD Year 1st - 8st : 100%, 9th 13th : 50%

Power Producer Business--Power Plant Portfolio (Domestic)

Total Capacity 26 MW
Strictly Private & Confidential

Project 1 (Operating) Capacity: 6.5 MW Location: Tasang, Nakorn -Sawan Project 2 (Operating) Capacity: 6.5 MW Location: Takeed, Nakorn -Sawan Project 3 (Operating) Capacity: 6.5 MW Location: Dong-Korn, Chainat Project 4 (Under Construction) Capacity: 6.5 MW
Location: Bung Samphan, Petchaboon

Total Capacity 30.9 MW

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 Average Radiation: 5.08 kWh/m2/d Project 3 (Under Construction) Capacity: 4.5 MW Location: Pichit Average Radiation: 5.08 kWh/m2/d Project 4 (Under Construction) Capacity: 8.0 MW Location: Nakorn Nayok Average Radiation: 5.04 kWh/m2/d Project 5 (Under Construction) Capacity: 3.0 MW
Location: Bung Samphan, Petchaboon

WED Plants
Total Capacity 60 MW Project 1 (Under Development) Capacity: 2 MW Location: Nakorn Ratchasima Project 2 (Under Development) Capacity: 8 MW Location: Nakorn Ratchasima

GPG Plants GPS Plants Total Plants: 12 Plants Already Operate : 27 MW Under Construction : 30 MW Going to Construction : 60 MW Total :117MW

Project 3 (Under Development) Capacity: 50 MW Location: Nakorn Ratchasima

Average Radiation: 5.04 kWh/m2/d

Power Producer BusinessSolar Project Information

Strictly Private & Confidential

Key Information
Investment Technology Selling price (Base Tariff) Adder BOI Tax Exemption Revenue ~ THB80 100 mm per MW Thin Film CIS modules without cadmium or Crystalline Silicon Module ~ THB 3.0 per kWh THB8.0 per kWh for 10 years since start of COD Year 1st - 8st : 100%, 9th 13th : 50% ~ THB19 mm per MW

Summary of Solar Power Plant Projects

Energy Company GPG GPS GPS GPG GPG GPG GPG Project Project 1 Project 1-3 Project 4 Project 2 Project 4 Project 3 Project 5 Location Chondan Tasang, Taked, Dong-Khon Bung Samphan Petchaboon Nakorn Nayok Pichit Bung Samphan 2012 Q1 Q2 Q3 Operated since 2011 Operated since Q1,2012 Q4 Q1 2013 Q2

Installed Capcity
(MW) 7.5 19.5 6.5 8 8 4.5 3

Solar Power 57 MW

X X X X X

Accumulated Installed Capacity (MW) 7.5 27 33.5 41.5 49.5 54 57

Remark: X indicates a period of a planned COD

10

Project 2 : GPG- WICHIANBURI 8.0 MW

Strictly Private & Confidential

Main substation 98%

Unit substation 98%

Electrical Installation 80%

Construction PEA 22kV. 60%

11

Project 3 : GPG-NOEN POE 4.5 MW

Strictly Private & Confidential

Main Substation Building 65%

Unit substation 70%

Mounting installation 75 %

PV install Prototype 30%

12

Project 4 : GPG- SRICHULA 8 MW

Strictly Private & Confidential

Unit substation 77%

DC 6 Sq.mm pulling Sub 1-3 (80%)

PV Installation Sub 1-2 (90%)

Pump Station 55%

13

Project 5 : GPG- BUNGSAMPHAN II 3MW

Strictly Private & Confidential

Compacted soil and land leveling of zoon B layer 3 progress 100%.

Compaction access road and backfilling of Unit sub dike D layer #1 progress 100%.

Compaction access road and backfilling of Unit sub dike layer #1 progress 100%.

Screw piling of MW#1 on 30%.

14

Project 4 : GPS- BUNGSAMPHAN 6.5MW

Strictly Private & Confidential

Main substation 91%

Array box connection 75%

PV Installation 86%

Construction PEA 22kV. 70%

15

Power Producer BusinessWind Project Information

Strictly Private & Confidential

Key Information
Investment
Technology Selling price (Base Tariff) Adder BOI Tax Exemption Revenue

Shareholding Structure
GUNKUL
70% 30%

~ THB60 70 mm per MW
Horizontal Wind Turbine ~ THB3.0 per kWh THB3.5 per kWh for 10 years since start of COD Year 1st - 8st : 100%, 9th 13th : 50% ~ THB14 mm per MW

WED

EGAT (50 MW)

PEA (8 MW)

PEA (2 MW)

Summary of Wind Power Plant Projects

Energy Project Location Q1 Q2 2013 Q3 Q4 Planned COD Planned COD 2015 Q1 Installed Capcity (MW) 10 50 Accumulated Installed Capacity (MW) 10 60

Wind Power 60 MW

Project 1 Project 2

Suplu 1& 2 Wayu

16

Update Status for 60 MW Huai Bong Wind Farm

Strictly Private & Confidential

General information: Land

Wind Data Summary Report

License for 60 MW Huai Bong Wind Power Project

60 MW Huai Bong Wind Farm

4 Progress on Engineering Work

5 Tentative Plan

17

Land Layout 49 Plots of Title Deed

Strictly Private & Confidential

Site Layout

Fencing works : Start Construction Land Boundary Measurement: Nearly to finish

18

Wind Data Summary Report

Strictly Private & Confidential

Wind data recorded at the site period

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

Sep,11 Oct,11 Nov,11 Dec,11 Jan, 12 Feb,12 Mar,12 Apr,12 May,12 Jun, 12 Jul, 12 Aug,12 Mast 1 Mast 2 5.2 5.5 5.8 6.1 6.5 6.8 8.3 8.7 5.3 5.6 4.8 5.1 5.0 5.3 5.0 5.2 4.8 4.9 7.2 7.3 7.1 7.3 7.2 7.3 Avg 6.1 6.3

19

Presentation Outline
Strictly Private & Confidential

1. Company Overview

2. Operating and Financial Performance

3. Strategic Direction and Growth Strategy

20

Revenue Breakdown as of Sep 30, 2012

Strictly Private & Confidential

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

41 (1.97%) 338 (16.24%) 184 (8.86%) 392 (18.84%)

3,736
THB mn

416
2,651

Q3/11

3,000 2,000 1,000 0

2008
1,366
1,288 864

449 73

1,543 133 570 779 295

Q3/2012
Government

1,126 (54.11%)

362 285 719

164 249 451

2009

600 240 448

2010

1,368 487 274

2011

Private
1,543 (46.48%)

Foreign

Electricity
295 (8.89%)

Construction

Q3/12

Government Foreign Construction

Private Electricity disposal of investment

779 (23.46%) 133 (4.01%) 570 (17.17%)

Note: Total Revenue from Government, Private and Foreign Customer is considered as revenue from Conventional Business
Government Private Foreign Electricity Construction
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Revenue & Profit as of Sep 30, 2012

Strictly Private & Confidential

Revenue vs. Overall Gross Margin

THB mn

Net Profit vs. Net Profit Margin

3,500
3,000 2,500 2,000 1,500
24.1 25.5

Margin%

28.14 2,926 2,446 22.98 18.23

30
25

THB mn

800 600

17.83

Margin
20 18 16 14 12 10 8 6 4 2 0

20 700 15 500

400
831 535 406 458 987

6.2

9.55 3.35

9.66 671 320.61

1,000 500
0

10
379

300 200
100 0

302

5
0

205 2011

54
2009

123
2010

89
2011 Q3/2012 Q3/2012

2008

2009

2010

Q3/2012

Rev.from Trading&Construction

Rev.from Manu.

Gross Margin(%)-RHS

Net Profit

Excluded Gain From sale GPS Net Profit Margin (%)

Included Gain From sale GPS

22

Our Financial Flexibility

Strictly Private & Confidential

Gunkuls Liabilities
THB mn

D/E Ratio
4

3.68

4,500 4,000 3,500

3.5
14

902

3
29

3,000
2,500 2,000 1,500
3005

864

2.5
2 1.82

1859

1.5
1

1,000
500 0
11 276 75
66

7 140 74

131

4 431 153

69

0.7

0.7

0.58

434

956

0.5
0 2008 2009 2010 2011 Q3/2012

2008

2009

2010

2011

Q3/2012

AP LT-int.bearing

ST-trade related liabilites Other liabilities

23

Financial Information as of Sep 30, 2012

THB mn
7,000 6,000 5,000 4,000 3,000
2,000 1,000 0
1.62% 6.26 % 6.88% 11.7 %

Asset
11.69%

%
14 12 10 8 6
4 2 0

THB mn

Liability

THB mn
2,500

Strictly Private & Confidential % Equity

3.69%

4,000 3,000 2,000 1,000 0 Liability Q3/2012

2,000 1,500 1,000 500

0
Equlity ROE

35 30 25 20 15 10 5 0

Asset

Q3/2012 ROA

Q3/2012

Transaction Asset (MB) Liability (MB) Equity (MB) Paid-up (MB) Revenue (MB) Net Profit (MB) ROA (%) ROE (%) Net Profit (%)
* Consolidated

30/09/2012* 5,747.78 3,708.67 2,039.11 440.00 3,767.30 671.80 11.69 32.95 17.83

31/12/2011* 5,539.78 4,356.18 1,183.60 400.00 2,651.51 89.52 1.62 7.56 3.35

31/12/2010* 1,789.71 657.51 1,132.20 400.00 1,288.7 123.17 6.88 10.88 9.56

31/12/2009* 856.90 351.79 505.20 300.00 864.07 53.66 6.26 10.62 6.21

31/12/2008* 1,051.36 428.17 632.19 240.00 1,366.20 123.01 11.70 19.74 9.00
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Growing Balance Sheet

Strictly Private & Confidential

Balance Sheet
Unit : THB mn

2,815.64 Current Liabilities 1,716.51 Current Asset 893.02 916.18 Non Current Asset 3,823.27 1,183.60 3,195.83 2,039.11 Non Current Liabilities 3,440.00 2,551.95

Shareholders Equity

As of Dec 31,2011

As of Sep 30,2012

25

Gunkul Backlog & Sales Forecast 2012

Backlog to confirm GUNKULs momentum
THB (MN)

Strictly Private & Confidential

1,137

190 311

11

Sales Backlog of as at 27/11/2012 (secure for the year 2012 of THB 1,649 m)

26

Presentation Outline
Strictly Private & Confidential

1. Company Overview

2. Operating and Financial Performance

3. Strategic Direction and Growth Strategy

27

Conventional BusinessHigher investments in transmission and distribution is positive due to increasing demand
1
Strictly Private & Confidential

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

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.

+ 8.8% YoY

Source: EGAT Source: EGAT

Higher investments in the transmission and distribution are supported by: Govt to improve the grids efficiency Govt to enlarge coverage to accommodate economic growth and the rising urbanization trend Expansion of the mass transit system in Bangkok

28

EPC Contractor Business--Great opportunity from being a one stop service of solar EPC contract
2
Strictly Private & Confidential

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.
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: EPPO as of Mar, 2012 (SPP + VSPP) * Including Solar Thermal ~ 1,400 MW

Source: Company

29

GUNKULs Next Step in Power Producer Business

Strictly Private & Confidential

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

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
Proportion of renewable energy

100% 80% 60% 40%

60 MW Wind 26 MW Solar 30.9 MW Solar 30.9 MW Solar 26 MW Solar 30.9 MW Solar 60 MW Wind 26 MW Solar 30.9 MW Solar

20% 0% 2012
Renewable

2021
Cogeneration

2030
Thermal

Combined cycle gas turbine

Source: EGAT

2010

2011

2012

2013

Type of Energy *Solar Biogas Biomass Waste Hydro Wind Total

Planned Capacity 2,000 600 3,630 160 1,608 1,200 9,198

Already COD 277.33 98.93 1288.42 37.33 13.28 0.38 1,715.67

PPA Approved with Signature 1,981.49 81.96 1,463.66 48.91 6.2 395.83 3,978.05

PPA Approved Consider 292.92 1,227.67 50.37 31.55 588.92 518 122.86 82.2 0.09 15.57 861.96 1821.84 1,917.12 3,696.83 30

Source: EPPO as of Mar, 12 (SPP+VSPP) * Including Solar Thermal ~ 1,400 MW

Renewable Power ProducerDomestic organic growth

Strictly Private & Confidential

Extracting growth from existing domestic assets

COD Schedule of Solar and Wind Power Projects (MW)

Energy Company Project Location Q1 GPG GPS Q2 2012 2013 2015 Accumul Installed ated Capcity Installed Capacity (MW) (MW)

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Project 1 Project 1-3 Project 4 Project 2 Project 4 Project 3 Project 5 Project 1 Project 2

Solar Power 57 MW

GPS GPG GPG GPG GPG

Chondan Operated since 2011 Tasang, Taked, DongOperated since 2011 Khon Bung Samphan Petchaboon Nakorn Nayok Pichit Bung Samphan Huai Bong 1& 2 Wayu

7.5 19.5 X X X X X
Planned COD
Planned COD

7.5 27 33.5 41.5 49.5 54 57 67 117

6.5 8 8 4.5 3 10 50

Wind Power 60 MW

WED WED

Total 117 MW

31

Renewable Power ProducerDomestic Wind Project Progress

Strictly Private & Confidential

Project Site & Wind Measurement Tower

Land Layout 49 Plots of Title Deeds

Site Layout
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

32

Renewable Power ProducerWind Data Report

Strictly Private & Confidential

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

33

Myanmar Wind Project Wind Energy Projects in Myanmar over 1,000 MW

Strictly Private & Confidential

Potential Areas Tanintharyi State Mon State Kayin State

* Expected to start construction in 2012

34

M8 Chaungsauk (Mon State)

Strictly Private & Confidential

35

M4 Zingyalk Site (Mon State)

Strictly Private & Confidential

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
36

M2 Kadwe Site (Tanintaryi State)

Strictly Private & Confidential

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
37

Strictly Private & Confidential

Special Project

38

Supply of Wind Turbines

Strictly Private & Confidential

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

39

Strictly Private & Confidential

Q&A

40