WHAUP Announces Two Good News for Year End : Q3/2021 Normalized Profit Growth by 39% and Dividend of 0.0925 Baht, Confirming its Financial Strength

Bangkok – WHA Utilities and Power (WHAUP) announces two good news for the year-end period, reporting its Q3/2021 performance with total revenue and normalized share of profit of THB 761 million, and normalized profit of THB 277 million. For the first nine-month period of 2021, WHAUP reported revenue and normalized share of profit at THB 2,332 million and normalized profit at THB 734 million. This reflects the strong growth of utilities and power businesses both in Thailand and Vietnam amidst the Covid-19 situation. The company's Board of Directors recently approved to pay the interim dividend of THB 0.0925 per share, to be paid on 8 December. Dr. Niphon Bundechanan, Chief Executive Officer of WHAUP, said that during the year-end period, the company will continue expanding its businesses both inside and outside of WHA industrial estates. He confidents that revenue and normalized share of profit for 2021 will continue growing and solar business will achieve company's signed target.

Dr. Niphon Bundechanan, Chief Executive Officer of WHAUP, disclosed that for Q3/2021, the Company recognized total revenue and normalized share of profit, and normalized profit of THB 761 million and THB 277 million respectively, up 17% and 39% from the third quarter of 2020. Net profit stood at THB 206 million, up 10% from Q3/2020. This reflects the growth of water sales and management in Thailand and in Vietnam combined with the commercialization of solar projects also increased continuously.

For the first nine-month period of 2021, the Company recorded total revenue and normalized share of profit and normalized net profit at THB 2,332 million and THB 734 million, rising 21% and 21% compared to the first nine months of 2020. Net profits recorded THB 582 million, up 6% compared to the same period of last year.

Utilities Business continued growing. In Q3/2021, total water sales and management volume in Thailand and Vietnam was 35 million cubic meters, up 25% from Q3/2020, and the same level of volume compared to Q2/2021. For the first nine-month period of 2021, total water sales and management volume in Thailand and Vietnam reached 103 million cubic meters, up 20% from the first nine months of 2020 due to increasing water demand both from existing customers expanding their businesses and new customers from the power and petrochemical sectors, as well as the return to normal operations of customers in industrial estates. The Company recognized revenue for the full quarter from water sales to GSRC the natural gas power plant of Gulf Energy Development (GULF) which began COD for the first production unit in April 2021. GSRC Water demand expect to increase as the second production unit will start COD in Q4/2021.

The company is still committed to developing value added products from wastewater reclamation, demineralized water and premium clarified water. As a result, in Q3 and the first nine months of 2021, the company's water sales volume of value-added products reached 1.2 million cubic meters and 3.3 million cubic meters respectively, representing an increase of 29% and 94% compared to Q3 and the first nine months of 2020. In addition, there are several projects under construction and in development, such as a new wastewater plant in WHA Rayong 36 Industrial Estate with a production capacity of 2.7 million cubic meters per year, demineralized water projects for customers outside industrial estates with a production capacity of 1 million cubic meters per year, and alternative raw water projects with a production capacity of 6 million cubic meters per year.

In Vietnam, the Duong River Surface Water Plant (SDWTP) in Q3/2021 increased water sales volume, rising 15% compared to Q3/2020 and 1% compared to Q2/2021, despite the full lockdown measures in Hanoi during Q3 due to the Covid-19 pandemic. Water sales volume in the first nine months of 2021 increased by 22% compared to the same period of 2020, due to rising demand for water. However, the Thai baht's depreciation against the Vietnamese dong in Q3/2021 resulted in the near level of loss sharing from SDWTP as the previous quarter. Cua Lo Water Supply, producer and distributor of tap water, completed its construction to increase its production capacity to 8.4 million cubic meters. It is in the process of adding pipelines to more areas to accommodate increasing demand for tap water as a result of the population growth and future water demand from customers in WHA industrial estates. The water pipeline extension project is expected to be completed by the end of 2022.

Power Business: In Q3/2021, the Company recorded normalized share of profit of THB 256 million, up 4% compared to Q3/2020 but down 7% from Q2/2021. The main factor is the strong growth of the 8 SPP power plants, which sold more power to industrial customers, despite the increasing cost of natural gas in Q3/2021. However, the performance of IPP power plant declined from the previous quarter, leading to the decrease of normalized share of profit compared to Q3/2020 and the first nine months of 2021 since Gheco-One coal power plant stopped for maintenance for another 28 days in this quarter. However, the Company expects that in Q4/2021, the normalized profit from Gheco-One will return to normal level as the plant has already resumed its normal operation.

For the renewable energy business, WHAUP continued to increase its investments, resulting in the continuous growth of its portfolio. In Q3/2021, revenue from the solar rooftop business stood at THB 33 million, which already commenced operations by 50 MW. The company has signed an additional 4 solar contracts, totaling 22 MW. One of the four projects is Prinx Chengshan, with a capacity of 19 MW, the contract with the highest production capacity the company has ever signed. This term of this contract is a 25-year. As of Q3/2021, the Company has contractual sign of 85 MW. By the end of 2021, the company is confident that it will have a cumulative solar contractual capacity exceeding 90 MW, higher than the year's target.

WHAUP CEO added that for Q4/2021 business outlook, the Company will continue expanding its utilities business within WHA Group's 11 industrial estates in Thailand and one in Vietnam. It will also develop innovative renewable energy solutions, especially for solar power, such as the collaboration with PTT and Sertis to develop P2P Energy Trading platform using blockchain technology to sell solar power to customers in WHA industrial estates. The project is part of the ERC Sandbox energy innovation testing project. At the same time, the company is testing the Battery Energy Storage System (BESS) to use together with solar power supply. The company believes that these innovations will create opportunities to expand capacity of renewable energy and explore new business models.

On 3 November 2021, the company was granted the Outstanding Innovative Company Awards from SET Awards 2021 held by the Stock Exchange of Thailand (SET) for the Demineralized Reclaimed Water innovation. This distinction reflects WHAUP's commitment to create quality innovations that can lead to improvements in society and be recognized as a role model for other organizations. This will help raise standards and bring sustainable growth to the country's economy and society in the long run. On the same day, SET also selected the company as one of the 'Sustainable Stock' or listed company in the Thailand Sustainability Investment (THSI) for the year 2021, for the second consecutive year. This reflects the company's potential to grow a sustainable business with good corporate governance, as well as to create value for its stakeholders including Environmental, Social and Governance (ESG), in line with its commitment: "Your Ultimate Solution Partner in Utilities & Power with Environmental Care."

In addition, the company's Board approved an interim dividend payment of THB 0.0925 per share. The XD sign will be posted on 25 November 2021 and the due date for dividend payment will be on 8 December 2021, respectively. This reflects the growth potential and stable cash flow from its businesses. Recently, TRIS Rating affirmed the company's credit rating and debentures rating at 'A-' level with upgrade rating to 'stable' outlook. This shows the company's positive outlook for growth of revenue from its utilities and power businesses, and its strong financial status.