Message from the President

“Sincere gratitude for your trust”

This was another year in which B.Grimm Power posted spectacular growth in several aspects: regional business growth, capacity growth, management for higher efficiency in assorted areas, and commitment to sustainable development while adhering to good governance and responsibility to communities, societies, and the environment. Despite its only second year of SET listing, BGRIM has entered the SET50, SET100, and SETCLMV indices, as well as the prestigious ESG100, apart from SET’s Thailand Sustainability Investment (THSI) award and the First Time Sustainability Report and the Recognition awards from a 2018 project on announcing exemplary sustainability reports. These accolades speak volumes for our team’s earnest efforts and dedication. We all are extremely grateful for the perennial trust of all shareholders and related parties.

A true project developer with commercial operation under the plan to add 26%capacity in 2018

B.Grimm Power aspires to be a true project developer and a majority shareholder in assorted projects. We participated in development from day one with a proficient team involved in joint development and hands-on project development. This past year we boasted 10 commercial projects in operation, 3 of which were SPPs located in the Amata City Industrial Estate Rayong and the remaining 7 were ground-mounted solar farms for government agencies and agricultural cooperatives B.E. 2560 (2017). The total installed capacity increment from last year was 430 megawatts (MW) (26% growth) to a total of 2,076 MW at year-end 2018. All projects were well-managed in time and under budget.

Greater ratio of clean energy and support to region’s sustainable growth

We take pride in our key role in producing clean energy in support of sustainable regional economic growth. This year we signed a 20-year PPA with Electricity of Vietnam (EVN) to develop two solar farms in that country with a total installed capacity of 677 MW. These consist of the Phu Yen TTP project (257 MW installed capacity) and the DTE 1 & 2 projects (420 MW installed capacity), the largest single solar project in ASEAN under construction and development. As a result, our proportion of clean energy has approached the 30% goal, and our proportion of foreign-project generation has risen to 25% with combined capacities from operating projects and developing ones.

Relentless extension of success both domestic and international

With our experience and skills, as well as our true project development, we now boast 16 power projects under construction and in development both domestic and international with a total installed capacity of 1,170 MW. These would raise our total installed capacity by 56% to 3,245 MW by 2025. Through our project development and adherence to business in parallel with hospitality, constant due regard for communities, the economy, societies, and sustainable growth, we have garnered trust from numerous allies locally and internationally in joint investigations or project development. In Thailand we have been selected as the operator of power plants and cooling water project at U-Tapao International Airport, which features a hybrid power plant, consisting of a combined-cycle power plant, solar power plant, and energy storage system, with a total capacity of no less than 145 MW in the first phase. Besides, we have engaged in strategic business growth by acquiring the Glow SPP 1 project which allows us to launch 2 new power plants to serve the Map Ta Phut area, which features incredible power demand, by 2024 based on the SPP Replacement scheme. We are also unceasingly growing our business abroad, such as our robust partnership with Korea Electric Power Corporation (KEPCO) and our efforts in ASEAN countries like Malaysia, Vietnam, Lao PDR, Cambodia, and the Philippines.

Ongoing management efficiency improvement

Ongoing is our effort to sharpen our management to raise business efficiency while lowering our cost of funds, echoing sustainable performance as well as growth. A case in point is our cooperation with Siemens in improving power plant efficiency through fuel saving, shortening of maintenance time, and addition of megawatts distributed to industrial customers. Moreover, our efforts to efficiently manage the cost of funds were evident in our issuance of debentures at the project level and the corporate level to grow our own potential for investment and business resiliency. This year we successfully issued three tranches of debentures, namely project-level B.Grimm BIP Power 1 Co., Ltd., debentures and B.Grimm BIP Power 2 Co., Ltd., debentures (worth Baht 6.7 billion); corporate debentures (worth Baht 9.7 billion); and Green Bonds for environmental conservation (worth Baht 5 billion). In fact, such Green Bonds represented Thailand’s first offer certified by Climate Bonds Initiative (CBI); it won the Most Innovative Deal award from the Thai Bond Market Association, customarily given to outstanding bonds for creative capitalisation, and the First Non-Financial Corporate Green Bond from Thailand certificate, presented by CBI.

Incessant profit growth

With our commitment to relentless business development, our performance this year posted outstanding growth of 16.2% in revenue to Baht 36.585 billion, resulting from our success in operating 10 commercial power plants through the year. We reported a normalised net profit under the consolidated financial statements of Baht 3.027 billion, of which the major shareholder’s equity accounted for Baht 1.842 billion, 6.7% growth from last year despite more maintenance shutdowns this year and higher fuel costs. As for the outlook for 2019, we are due to launch four more commercial projects, not to mention our acquisition of the GLOW SPP 1 power plant, to post an additional total installed capacity of 821 MW (40% growth) to 2,896 MW. We also benefited from the Ft adjustment of January 2019.

Commitment to strengthening the global society with hospitality

All these moves represent B.Grimm Power’s recent strides along our path of quality, sustainable growth both domestic and international. On behalf of the management team and employees, I would therefore like to thank the shareholders for their trust in us. Your trust is pivotal to our wholehearted dedication to taking the corporation to world-class in parallel with our support to and development of communities, societies, and the economy in years to come.

Mrs. Preeyanart Soontornwata