WHAUP Announces THB 3,017 Million in Total Revenue and Normalized Share of Profits for 2021, Rising 16%; Normalized Net Income Reaches THB 866 million; proposes Additional Dividend at 0.16 baht/share

BANGKOK – WHA Utilities and Power Public Company Limited (WHAUP) announced its 2021 results, reporting total revenue and normalized share of profits of THB 3,017 million and normalized net income of THB 866 million. WHAUP will propose the Annual General Meeting of Shareholders to approve an additional dividend of 0.16 baht per share, to be paid on 19 May 2022. CEO Dr. Niphon Bundechanan revealed an investment of THB 2.7 billion in the utilities and power businesses this year. It forecasts a total revenue and normalized share of profits of THB 6 billion in 2026, or 2 times that of 2021 - while maintaining EBITDA margin of no less than 50%.

Dr. Niphon Bundechanan, Chief Executive Officer of WHAUP, revealed the Company’ s 2021 results, showing total revenue and normalized share of profits of THB 3,017 million and normalized net income of THB 866 million, an increase of 16% and 11% respectively from 2020, while the net profit of THB 736 million decreased by 10%, due to the impact of foreign exchange. The strong growth of total revenue and normalized share of profits and normalized net income was due to the vibrant utilities business, with increased water sales and management volume in Thailand and Vietnam. Moreover, new solar power projects have started commercial operations continuously.

Utilities Business: In 2021, the Company's total water sales and management volume in Thailand and Vietnam amounted to 135 million cubic meters, up 18% from 2020. The overall domestic utilities business grew 17% year-on-year, due to an increased water demand from existing and new customers in power and petrochemical sectors. In addition, there was no drought problem as in the previous year. In 2021, the Company started to recognize revenue from water sales to GSRC - the natural gas power plant of Gulf Energy Development Public Company Limited (GULF), which began commercial operations for Units 1 and 2 in April and October 2021, respectively.

The Company plans to further develop Value added products through Wastewater Reclamation, using the Company’s expertise to process Demineralized water and Premium Clarified water. Given this, sales volume of Value added products reached 4 million cubic meters in 2021, representing a growth of 62% compared to 2020. In 2021, the Company signed a water purchase agreement with GULF TS 3&4 to supply Premium Clarified water with a capacity of 1.4 million cubic meters per year. The project is scheduled to be commercialized in Q3/2022. Furthermore, the Company has also partnered with Asia Industrial Estate Co., Ltd. to establish a joint venture under the name of “WHAUP Asia Reclamation Water Co., Ltd.” (WHAUP AIE) to operate water utilities business in Asia Industrial Estate (Map Ta Phut). The joint venture company signed a purchase agreement of demineralized water with Purac (Thailand) Co., Ltd., its first customer, with a production capacity of 1.0 million cubic meters per year, starting COD in Q4/2022.

In Vietnam, total water sales volume, according to WHAUP’s shareholding equity in Duong River Surface Water Plant (SDWTP) and Cua Lo Water Supply Company Limited, reached 23 million cubic meters, representing 22% growth from 2020, due to an increase in demand for water from both existing and new customers. The Company expects water sales volume in Vietnam in 2022 to grow continuously, in line with WHAUP’s plan to expand the utilities business to nearby provinces as well as WHA Group’s industrial estate expansion plan including WHA Industrial Zone - Nghe An Phase 2, which is scheduled to begin construction in Q1/2022.

Power Business: In 2021, the Company's normalized share of profits was THB 956 million, a slight decrease of 3% compared to 2020, due mainly to the maintenance of GHECO-One Power Plant, causing a decline in Availability payment. However, the operating performance of the SPP business continued to grow strongly. As a result, the Company recognized a growing normalized share of profits from SPP business due to the increasing electricity dispatch to EGAT and industrial customers (IU).

For renewable energy business, the Company continues to invest in both solar power plant projects and waste-to-energy power plants. In 2021, the Company recognized the revenue growth of more than 335% from solar power projects of 57 MW under commercial operations, and new revenue from providing EPC services. The Company also secured 18 new solar power purchase agreements for a total of 41 MW at year’s end, bringing accumulated solar power purchase agreements to reach 92 MW, exceeding the target. For 2022, the Company aims to secure new solar rooftop power purchase agreements to reach accumulated 150 MW in total, making the cumulative target of total capacity to reach 700 MW equity in 2022, from 642 MW equity in 2021.

In addition, WHAUP continues to expand its solar power business through innovative technologies such as a smart energy trading platform among customers within WHA Industrial Estates; and a Peer-to-Peer energy trading system using blockchain through collaborations with leading energy and technology partners. It is also a part of the Sandbox program of the Energy Regulatory Commission (ERC), which is currently being tested in preparation for commercial trading, while waiting for the government’s green light. The project is expected to expand the company’s renewable energy portfolio by an additional 100-200 MW, in line with the plan to expand the renewable energy business up to 300 MW within 2023.

With the continuous development and expansion of solar power projects, last year WHAUP helped avoid more than 26,000 tons of CO2 emissions - thanks to the solar energy business, which help offset with CO2 emission generated from WHA group’s activities. Such avoided CO2 emission would help achieve carbon neutrality; whereas leaving an additional avoided CO2 for further use potentially with a trading scheme that could further enhance its business.

Based on last year’s operating performance, the Board of Directors resolved to propose to the Annual General Meeting of Shareholders for the approval of a total dividend payment at 0.2525 baht per share for 2021, including an interim dividend of 0.0925 baht per share, which was paid previously and an additional dividend at 0.16 baht per share. The XD sign will be posted on 29 April 2022 and the payment date on 19 May 2022. This reflects the potential growth and healthy cashflows from its operations.

Regarding the company’s 2022 business plan, Dr. Niphon Bundechanan, Chief Executive Officer of WHAUP, announced an investment budget of THB 2.7 billion, as part of a 5-year investment plan (2022 - 2026) worth THB 10 billion, to be equally divided between utilities and power. This does not include overseas investments, which are under studies, including greenfield investments and Merger and Acquisition (M&A) deals. According to its 5-Yr investment plan, WHAUP forecasts total revenue and normalized share of profits of THB 6 billion in 2026, twice that of 2021, while maintaining an EBITDA margin of at least 50%, contributed by both utilities and power.