Electricity Generating Authority Of Thailand North Bangkok Power Plant Block 1 Infrastructure Fund : Management Discussion and Analysis Quarter 2 Ending 30 Jun 2022

Management Discussion and Analysis

Cash earnings to consider for distribution for Quarter 2 / 2022

Availability payments from the rights to availability	2022	2022	Q2-22 /	2021	Q2-22 /
payment agreement (Thousand Baht)	Q2	Q1	Q1-22	Q2	Q2-21
Availability payments from the agreement	468,180	476,593	(8,413)	462,203	5,977
Consist of Amortisation of investment in the agreement	251,862	244,346		253,578
Interest income	216,318	232,247		208,625
Cash earnings to consider for distribution	2022	2022	Q2-22 /	2021	Q2-22 /
(Thousand Baht)	Q2	Q1	Q1-22	Q2	Q2-21
Interest income from investment in the agreement	251,862	244,346	7,516	253,578	(1,716)
Interest income from investment in securities & deposit	1,238	1,225	13	802	436
Less Total expenses	(7,544)	(6,719)	(825)	(7,526)	(18)
Net Investment income	245,556	238,852	6,704	246,854	(1,298)
Net unrealised gain (loss) on investments valuation	0	(430,810)		(77,812)
Increase in net assets from operations	245,556	(191,958)		169,042

According to the right to availability payment agreement, the number of contracted availability hours (CAH) under the contract in 2022 is 8,110 Hrs. At the end of Q2/22, the power plant can archive the availability hours of 4,335.5 hours, representing 53.46% of the total contracted availability hours.

In this quarter, the fund received the payments from the rights to availability payment agreement around 468 M.THB which was recognized as amortization of investment in the agreement and interest income of 216 M.THB and 252 M.THB respectively. If we combined the interest income from the agreement with interest earn from bonds and deposits, the total interest income was about 253 M.THB. After we deducted with fund's expense of 7.5 M THB from the total income, the net investment income was approximately 245 M.THB. If we combined the net investment income with the amortization of investment, we found that the net cash receipt in 2nd quarter was about 462 M.THB which can be distributed to unitholder as payments of dividend and capital reduction. However, the retained earnings were only around 57 M.THB, which is lower than the net cash receipt. Therefore, the fund is considered to distribute dividends together with capital reduction payment.

In this regard, the fund paid dividends from retained earnings of 0.0274 baht/unit, or approximately 57 M. THB, and paid capital reductions payment from surplus liquidity of 0.1820 baht/unit, or approsimately380 M.THB.

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Financial Position of the Fund

Net Asset Value (NAV) of the Fund	As of JUN 30, 2022		As of MAR 31, 2022
	Thousand		% of		Thousand	% of
	Baht		NAV		Baht	NAV
Infrastructure asset	18,095,160	93.40%		18,307,824	93.57%
Liquidity asset	811,843	4.19%	783,677	4.01%
Undued receivable from revenue transfer agreement	468,181		2.42%	476,593	2.44%
Total assets	19,375,184	100.01%	19,568,094	100.01%
Total liabilities	2,038		0.01%	1,817	0.01%
Net assets	19,373,146	100.00%	19,566,277	100.00%
Net assets consist of
Capital from unitholders	19,315,901	99.70%	19,758,027	100.98%
Retained earnings	57,245	0.30%	(191,750)	(0.98%)
Total	19,373,146	100.00%	19,566,277	100.00%

As of June 30, 2022, the Fund has a net asset value of approximately 19,373 million baht, which the main assets are infrastructure asset at fair value which is the valued using the Discounted Cash Flow method of availability payment under the revenue transfer agreement from July 1, 2022 until the end of the agreement as of July 7, 2 035, with a value of approximately 18,095 million baht, or equivalent to 93.40% of the net asset value.

In this regard, the value of the aforementioned main assets has decreased from its value as of March 31 , 2 022 by approximately 213 million baht, in accordance with the nature of the asset with a limited life which the value of such asset will gradually decrease to zero on the expiration date of the agreement. Nevertheless, a change in the value of the main asset did not arise from a change in the projection of cash flows from electricity business under the revenue transfer agreement.

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