Taiwan Smart Electricity&Energy Co. Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks Long-term fixed-price CPPAs support stable profitability. Lack of operating track record and uncertain pricing and trade terms before the completion of contracting. Good market position in Taiwan?s renewable aggregation services market leads to nearly full risk passthrough and low working capital needs. Likely duration mismatch between TSEE?s CPPAs with offshore wind farms and power users. An asset-light model and stable operating cash flow supports very low debt leverage.High likelihood of extraordinary support from the Taiwan government. Material market and supplier concentration could cause some business volatility. We believe Taiwan Smart Electricity&Energy Co. Ltd.'s (TSEE) association with the Taiwan government and the company's strong shareholder mix

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