Investor Presentaiton

ANNUAL REPORT 2018-2019 Summit Power Limited Summit Power Limited (SPL), a subsidiary of Summit Group that owns and operates 15 (fifteen) power plants in different locations across the country having a total installed capacity of 976 MW.As per private sector power generation policy of Bangladesh, SPL sells electricity to the Bangladesh Power Development Board (BPDB) and Bangladesh Rural Electrification Board (BREB). SPL plants are equipped with world class engines manufactured by renowned companies such as Wärtsilä - Finland, Caterpillar - USA, and GE Jenbacher, Austria. The Company follows the best practice of Integrated Management System (IMS) for its regular business operation and has been certified by ISO 9001:2015 - Quality Management System (QMS), ISO 14001: 2015 - Environmental Management System (EMS) and BS 18001:2007 Occupational Health and Safety Assessment System (OHSAS). Yearly Dividend Growth 2012-19 15 10 206 15% 2012 2013 14 2015 Dividend as Share Dividend as Cash 10% 30% 2005-17 2017-11 300-19 Chart: SPL is a publicly listed company since 1994 and the chart shows dividend disbursed to shareholders in past seven years. Due to its management's dedication, integrity and leadership, the Company has been awarded locally and internationally i.e. - Best Private Power Generation Company in recognition of fastest implemented power plant in the country, Best Fast Track Power Project Award by Asian Power Awards, Silver Award at Asian Power Awards 2018 in Indonesia, International Star for Leadership in Quality Award by Business Initiative Directions (BID), Best Presented Accounts and Corporate Governance Disclosures Awards by SAFA, ICAB National Award for Best Published Accounts and Reports in Manufacturing Sector, ICMAB Best Corporate Award in Power Sector, ICSB National Award for Corporate Governance Excellence in General Manufacturing. The Company has also been assigned the longterm rating "AAA" by Credit Rating Information & Services Limited (CRISL) two times in a row. As part of Corporate Social Responsibility, SPL supports various organizations and community capacity development institutions that focus on education, health & social services, sports and arts & culture. More recently, Summit established Prof Hamiduzzaman Sculpture Park within the premises of the Summit Gazipur 464 MW Power Plant - the first sculpture park in Bangladesh that boasts the longest mural (340 feet) in the country titled (Labour and Creation). This world renowned sculptor's many creations such as 'World in a frame' and 'Life & Lifeless' are in the park. 3 VUMMI T Summit Corporation Limited (SCL) Summit Corporation Limited (SCL) is the holding company of all power assets of Summit Group. It is the largest independent power producer (IPP) ofBangladesh. Having established in 1985, SCL sponsored the first 110 MW barge-mounted power plant in 1997 and since then has actively implemented many more power plants. Currently Summitowns 20 operational power plants in the country with an aggregated installed capacity of 1,941 MW, comprising of 21 per cent of Bangladesh's total installed capacity in private sector and 10 per cent of nation's total installed capacity. The company is highly regarded for its efficient and ethical business practices with a reputation for excellence and innovation. As part of its business strategy, Summit continuesto implement innovative and pioneering ideas to powering progress of Bangladesh. In a move to establish major energy infrastructure, the Japanese firm JERA has recently bought a 22 percent stake in Summit for $330 million. As a shareholder of Summit, JERA will strive to increase the corporate value of Summit through the efficient construction and operation of its power generation facilities and contribute to the sustainable economic growth of Bangladesh. D ANNUAL REPORT 2018-2019 Summit's Liquified Natural Gas (LNG) Floating Storage and Regasification Unit (FSRU) at Moheshkhali, Cox's Bazar, Bangladesh. In 2018, Summit established 464 MW power plant at Kodda, Gazipur, Bangladesh in record time and achieved recognition of the fastest implemented this power plant in Bangladesh at the "Power & Energy Week 2018" and "Fast-Track Power Plant of the Year" at Asian Power Awards 2018 in Indonesia. The projects in the pipelines are Summit-GE consortium for developing the largest 583 MW Combined-Cycle Power Plant (CCPP) in Meghnaghat to be operationalized by March 2022; Summit as lead partnership with JERA, Mitsubishi and GE to develop four units of 600 MW combined cycle power plants (total generating capacity of 2,400 MW), two units of on-shore LNG terminal with a total of 380,000 m³ capacity and a large energy infrastructure in Matarbari area in Cox's Bazar, Bangladesh. In the long run, Summit is expecting to nearly double its current capacity by 2021. 18 This fast-growing Company has set a mission to expand the Company with a power generation capacity to the tune of a modest 20% of the electricity requirement in Bangladesh. Recently, the Company has installed two power plants in Kodda, Gazipur: 300 MW HFO fired Plant within nine (9) months from the date of Letter of Intent and 149 MW Dual Fuel (HFO/Gas) fired Plant within 15 (fifteen) months from the date of signing of Power Purchase Agreement (PPA). It is considered the fastest implemented 300 MW power plant in Bangladesh and one of the fastest in the world. The 464MW Kodda, Gazipur Power Plants awarded the prestigious Best Private Power Generation Company in recognition of fastest implemented power plant in the country. This 340 feet mural titled, is the largest mural in Bangladesh which located inside Summit's 464 power plants premises in Kodda, Gazipur. SPL was incorporated in Bangladesh on March 30, 1997 as a Private Limited Company. On June 7, 2004, the Company was converted into Public Limited Company under the Companies Act 1994. During October-November 2005, the Company listed its shares with both Dhaka and Chittagong Stock Exchanges. The Vision, Mission and Objectives, articulated for its sustainable growth are as under: Vision: To provide quality & uninterrupted electricity to the vast majority of rural Bangladesh for their personal, social & economic development. Mission: "Empowering Bangladesh" To expand the company into a power generation capacity to the tune of about 20% of the electricity requirement of Bangladesh and maintain that level. Objectives: . Generate and provide uninterrupted reasonably priced electricity to our customers. Efficient utilization of capital, machineries, materials and human resources. Continuous improvement of customer satisfaction and resource management. JERA Following the MoU signing between Director of Summit Group Faisal Khan (left) and CEO of JERA Asia Toshiro Kudama (right) in the gracious presence of the Honourable Prime Minister Sheikh Hasina during her state visit to Japan in May 2019, JERA finalizes the investment. In 2019, completed developing and operationalizing Summit LNG Terminal Co Ltd (SLNG) which was a feat of complex project management that involved global partnership a month ahead of schedule. The Floating Storage Regasification Unit (FSRU) has the capacity to supply 500 Million Cubic Feet per Day (mmcfd) regasified liquefied natural gas (RLNG) to the National Gas Grid of Bangladesh. Observing the prospect, the Japanese giant Mitsubishi Corporation has acquired a 25% interest of this terminal. Summit Meghnaghat II Power Company Limited (SMIIPCL), a subsidiary of Summit Group signed power purchase agreement (PPA) with Bangladesh Power Development Board (BPDB) for 22 years. Summit was awarded the Best Private Power Generation Company of Bangladesh five times in a row. Summit Corporation Ltd received long term AAA credit rating for fourth consecutive year from CRISL. The long term AAA credit rating of SCL indicates the highest safety and have highest credit quality while short term rating ST-1 indicates highest certainty of timely repayment. Major stakeholders include JERA, Mitsubishi Corporation, General Electric, Wärtsilä, International Finance Corporation (IFC), Asian Development Bank, Islamic Development Bank (IsDB), Standard Chartered Bank, Hong Kong Shanghai Banking Corporation (HSBC) and DBS Bank of Singapore among others. 19