Clp Holdings Limited · HKEX:2
Clp — 1H2023 Earnings Presentation
57 slides from Clp's earnings presentation, Aug 7, 2023
Slide 1: 2023 Interim Results Presentation
CLP Holdings 2023 Interim Results Presentation 7 August 2023
Slide 2: Disclaimer
Disclaimer Potential investors, analysts and shareholders of CLP Holdings Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you ma
Slide 3: Agenda
Agenda Overview Richard Lancaster, Chief Executive Officer Financial Performance and Outlook Nicolas Tissot, Chief Financial Officer Strategy and Roadmap Richard Lancaster, Chief Executive Officer Questions and answers Opening ceremony of CLP Pulse (Clock Tower at Argyle Street) Appendices 2
Slide 4: Overview
Overview The Floating Storage and Regasification Unit (FSRU), LNG carrier and offshore LNG terminal in Hong Kong 3
Slide 5: Group summary and outlook
Group summary and outlook Solid financial Strong performance and steady financial Investing in energy transition while Ensuring energy security and a performance delivering value to shareholders sustainable future Hong Kong and Mainland China Momentum in growth investments Climate Vision 2050 on tra
Slide 6: 1H2023 highlights
1H2023 highlights Financial Highlights Operational Highlights Change Safety & Customers Change Operating Earnings (before fair value) HK$4,955 million 19% Total recordable injury rate (2) 0.17 0.10 Total earnings HK$5,060 million n/a Unplanned customer minutes lost 5.72 mins 0.01 in Hong Kong (3) Di
Slide 7: Financial Performance and Outlook
Financial Performance and Outlook CLP Pulse (Clock Tower at Argyle Street) 6
Slide 8: 1H2023 Financial overview
1H2023 Financial overview Steady progress in 2023 EBITDAF (1) Operating Earnings (1) Total Earnings / EPS Operating Earnings Total Earnings HK$11,380 million 5% HK$4,955 million 19% HK$5,060 million n/a Operating Earnings (incl. fair value) Earnings Per Share (EPS) HK$4,972 million n/a HK$2.00 n/a C
Slide 9: EBITDAF by business unit
EBITDAF by business unit EBITDAF growth across our markets HK$M 12,000 219 57 11,380 313 102 10,844 343 422 12% 158 105 777 481 excl. FX and 10,000 ( 40 ) 146 ( 619 ) 1,947 Scope 1,819 8,000 +1,195 6,000 Taiwan Region & Thailand Apraava Energy 4,000 8,763 8,926 EnergyAustralia Mainland China 2,000 H
Slide 10: Operating earnings before fair value movements variance
Operating earnings before fair value movements variance HK$M 6,000 101 1,195 425 98 16% 4,955 excl. FX and 5,000 1,240 1,372 ( 379 ) ( 110 ) 4,154 44 58 (7) Scope 4,000 3,000 Taiwan Region & Thailand 4,243 4,170 Apraava Energy 2,000 EnergyAustralia 1,000 Mainland China Hong Kong - Other earnings & (
Slide 11: Operating earnings by business unit
Operating earnings by business unit HK$M 1H2023 1H2022 Change Higher return from average net Hong Kong energy and related activities 4,170 4,243 2% fixed assets offset by higher interest costs Mainland China 1,372 1,240 11% Higher output from nuclear fleet EnergyAustralia (590) (726) 19% Improved En
Slide 12: Operating Earnings – Hong Kong
Hong Kong Stable contribution reflect progress of major projects 5,000 Operating Earnings 4,243 5 234 4,170 2% 4,000 ( 246 ) ( 66 ) excl. FX (HK$M) 3,000 2,000 1,000 - 1H2022 FX Return on higher fixed Higher Others 1H2023 assets non-pass-through interest costs Performance Outlook • Operating earning
Slide 13: Operating Earnings – Mainland China
Mainland China Solid performance from non-carbon portfolio 1,800 170 20 41 1,372 6% 1,400 13 1,240 ( 27 ) ( 85 ) excl. FX and Operating Earnings 347 Scope 1,000 (HK$M) 600 1,168 Renewables 200 Nuclear 23 Thermal (200) (166) Others 1H2022 FX Scope ^ Nuclear Renewables Thermal Others 1H2023 ^ Impact o
Slide 14: Operating Earnings – EnergyAustralia
EnergyAustralia Measures taken and stabilising market conditions set up for progressive recovery Gross Margins 800 14% 150 excl. FX 659 Operating Earnings 400 (HK$M) - 408 (754) (400) (143) 43 (178) (590) (49) (800) (726) 1H2022 FX Yallourn Mt Piper Other Energy Customer and Opex and D&A Net finance
Slide 15: EnergyAustralia outlook
EnergyAustralia outlook • Reduction in volatility from 2022. Average market contract price (12 mths average) in NSW and VIC • Australia targeting 82% of Cal 2021 Cal 2022 Cal 2023 renewable energy by 2030. $ 59 $ 53 $ 148 • Investing in reliability of coal fleet. • Retail pricing rising. • Investing
Slide 16: Operating Earnings – Apraava Energy
Apraava Energy CDPQ partnership building momentum and benefits from Jhajjar one-off 500 6 425 290% 298 Operating Earnings 400 excl. FX, scope and group (HK$M) 300 320 adjustment 200 98 17 15 100 21 (6) (3) 54 Thermal - 30 Transmission 1H2022 FX Scope and Renewables Thermal Thermal: Transmission 1H20
Slide 17: Cash inflows and outflows
Cash inflows and outflows HK$ billion Cash Inflows and Outflows Returning to sound cash flow generation 15.0 Cash flow generation back to a more usual yearly profile after the exceptional 2022. 10.2 Other capex 0.3 Total capital investment(2) of HK$5.6 billion consist of mainly: 10.0 Growth capex •
Slide 18: Debt structure and liquidity remain healthy
Debt structure and liquidity remain healthy Net Debt Net Debt/Total Capital Liquidity Position (1) HK$58.9 billion 33.6% Liquidity Position (HK$ billion) 40.0 35.9 33.6 30.0 Debt Maturity Debt Composition Within 1 year 20.0 Floating 21% rate 38% 46% 10.0 1-2 15% 54% 15.5 years 13.5 Beyond 5 years Fi
Slide 19: Strategy and Roadmap
Strategy and Roadmap Yangzhou Gongdao Solar, Jiangsu, Mainland China 18
Slide 20: Areas of strategic focus
Areas of strategic focus Grow in energy Decarbonise our Transform to a transition and operations utility of the future electrification Continued integration of sustainability into our business 19
Slide 21: Supporting Hong Kong Government’s policy priorities and customers
Supporting Hong Kong Government’s policy priorities and customers Economic and • Support customer demand growth and housing development. societal • Establish power supply to new data centres. • Enable infrastructure developments and supply to new development development areas. Safe & Reliable Carbon
Slide 22: Expanding diversified non-carbon fleet in Mainland China to meet demand
Expanding diversified non-carbon fleet in Mainland China to meet demand • Renewable energy pipeline growing significantly. ~3GW • Leveraging partnerships and capitalise on in RE project expansion opportunities. pipeline • Developing in high-demand economic load Heilongjiang centres. Jilin Bohai Econ
Slide 23: Decarbonising our operations
Decarbonising our operations Absolute Scope 1 and Scope 2 emissions of CLP’s Past and Projected Greenhouse Gas Emissions Intensity (2) CLP’s thermal generation assets # ktCO2 FCG contribution will be taken out from 2023 onwards 60,000 50,000 10% 40,000 23% 30,000 18% 20,000 15% 8% 10,000 11% 3% 13%
Slide 24: Questions and Answers
Questions and Ω CLP 2023 Annual General Meeting on 5 May 2023 Answers 23
Slide 25: Appendices
—— Appendices pa CLP@ +s
Slide 26: Financial highlights
Financial highlights 1H2023 1H2022 Change Revenue (HK$M) 43,302 47,594 -9% Operating Earnings (before Fair Value Movements) (HK$M) 4,955 4,154 +19% Operating Earnings (HK$M) 4,972 (3,846) n/a Total Earnings (HK$M) 5,060 (4,855) n/a Operating Earnings per share (HK$) 1.97 (1.52) n/a Total Earnings pe
Slide 27: Operating highlights
Operating highlights 1H2023 1H2022 Change Safety (Total recordable injury rate) (1) 0.17 0.27 -0.10 Reliability in Hong Kong (minutes lost pa) (2) 5.72 5.71 +0.01 Customer accounts (Thousand) Hong Kong 2,771 2,727 +44 Australia 2,439 2,448 -9 Electricity sent out (TWh) (3) 38.2 41.1 -7.0% Generation
Slide 28: Items affecting comparability
Items affecting comparability HK$M 1H2023 1H2022 Hong Kong Profit from sale of properties Sale of Argyle Street properties. Hong Kong – Profit from sale of properties 88 - Hong Kong Revaluation loss on investment property Hong Kong – Revaluation loss on investment property - (23) Retail portion of t
Slide 29: Reconciliation of EBITDAF, ACOI and Operating Earnings
Reconciliation of EBITDAF, ACOI and Operating Earnings Adjusted Current Operating Income or ACOI HK$M 1H2023 1H2022 Change • ACOI equals EBIT excluding items affecting comparability and fair value Recurring EBITDAF 11,380 10,844 5% movements, and includes the Group’s share in earnings from joint ven
Slide 30: Reconciliation of EBITDAF, ACOI and Operating Earnings by business units
Reconciliation of EBITDAF, ACOI and Operating Earnings by business units Hong Kong energy and Taiwan Region and Other earnings & HK$M Mainland China EnergyAustralia Apraava Energy Group total related activities Thailand unallocated items 2023 Interim Recurring EBITDAF 8,926 1,947 481 422 102 (498) 1
Slide 31: Cash flow and financial structure
Cash flow and financial structure Free Cash Flow HK$M 1H2023 1H2022 Change Cash Flow • Australia: Improved free cash flow mainly attributable to the cash deposits Consolidated EBITDAF 11,485 9,186 2,299 refunded (HK$2.4 billion) from the future margin account of EnergyAustralia as Less: Items affect
Slide 32: Dividends
Dividends A history of returning cash to shareholders CLP Ordinary Dividend 1990 – 1H2023 and Shareholding by Category HK$ 3.5 Retail Interests investors associated with 3.10 3.10 3.10 3.02 3.08 3.0 35% 35% Kadoorie Family 2.91 2.80 As at 2.70 31 Dec 2022 2.62 2.5 1.21 1.21 1.21 1.19 1.19 1.14 1.09
Slide 33: Financial obligations at a glance
Financial obligations at a glance HK$M 30 Jun 2023 31 Dec 2022 Increase in the Group’s net debt to HONG KONG total capital was driven by higher Total borrowings of CLPH, CLPP, CAPCO & PSDC 51,287 48,702 net debt mainly to finance Minus: Bank balances and liquid funds (1,286) (1,915) decarbonisation
Slide 34: Credit ratings
Credit ratings CLP Holdings CLP Power CAPCO EnergyAustralia The credit ratings and rating outlooks had S&P Moody’s remained unchanged in the first half of 2023. S&P Moody’s S&P Moody’s Moody’s Long-term Rating In May, S&P affirmed the A, A+ and AA- credit ratings of CLP Holdings, CLP Power and CAPCO
Slide 35: Highlights of financing activities
For more information on Highlights of financing activities CLP Climate Action Finance Framework CLP Holdings: Ample liquidity in the Group at 30 June 2023 Mainland China: Reduced interest rate and continued financing • The Group maintained adequate liquidity with undrawn bank facilities of HK$31.2 •
Slide 36: Loan balances by type and maturity
Loan balances by type and maturity Loan Balance - Type Loan Balance – Maturity (1) Proportion of Debt on Fixed HK$M HK$M 70,000 and Floating Rate 70,000 60,000 60,000 4% 5% 21% 19% 50,000 50,000 30% 35% 11% 15% 40,000 40,000 30% 26% 46% 54% 30,000 30,000 48% 52% Jun 2023 20,000 60% 54% 20,000 10,000
Slide 37: Hong Kong – Growing business scale
Hong Kong – Growing business scale Generation Transmission Distribution Retail 10,445 MW > 16,800 km of transmission and 241 primary and > 15,400 16,319 GWh sold and generation portfolio high voltage distribution lines secondary substations 2.771 million customer accounts During 1H2023: • Local elec
Slide 38: Hong Kong – Electricity sales, earnings and capex
Hong Kong – Electricity sales, earnings and capex Electricity sales Capital expenditure (Accrual basis) GWh 1H2023 1H2022 Change Proportion HK$M 1H2023 1H2022 Change Residential 4,216 4,332 2.7% 26% CLP Power Hong Kong 2,805 2,116 32.6% Commercial 6,481 6,081 6.6% 40% CAPCO * 1,938 2,766 29.9% Infra
Slide 39: Hong Kong – Tariff, reliability, fuel prices and environmental improvement
Hong Kong – Tariff, reliability, fuel prices and environmental improvement Low tariff Residential Tariff % Increase from Jan 2021 to Jan 2023 High reliability HK$/kWh Unplanned customer minutes lost per year 4.0 London +103% 40 31 3.0 30 Tokyo +76% 20 16 2.0 13 Singapore +41% 10 5.7 * 1.0 0.5 0 1.0
Slide 40: Mainland China – Financials (HK$)
Mainland China – Financials (HK$) HK$M Operating/Total Earnings ACOI 1H2023 1H2022 1H2023 1H2022 Renewables 347 347 548 566 - Wind 226 205 321 299 - Hydro 12 41 54 94 - Solar 109 101 173 173 Nuclear 1,168 1,042 1,271 1,136 - Daya Bay 520 466 547 491 - Yangjiang 648 576 724 645 Thermal 23 12 25 11 -
Slide 41: Mainland China – Financials (RMB)
Mainland China – Financials (RMB) RMB M Operating/Total Earnings ACOI 1H2023 1H2022 1H2023 1H2022 Renewables 308 289 487 471 - Wind 201 171 285 249 - Hydro 10 34 48 78 - Solar 97 84 154 144 Nuclear 1,039 866 1,131 945 - Daya Bay 463 387 487 408 - Yangjiang 576 479 644 537 Thermal 21 10 22 9 - Shando
Slide 42: Mainland China – Earnings, performance and opportunities
Mainland China – Earnings, performance and opportunities Earnings and performance Business development opportunities • Higher earnings from Nuclear was mainly due to higher • Solar: The ~80MW Yangzhou Gongdao solar project in generation of Daya Bay and Yangjiang. Jiangsu, target to complete grid con
Slide 43: Mainland China – Market sales in 1H2023
Mainland China – Market sales in 1H2023 Province Projects with Market Sales (Equity MW) Yunnan Xundian Wind (99.5MW) Xicun Solar (84MW) Dali Yang_er Hydro (50MW) Inner Mongolia Zhungeer Thermal (257MW) JILIN Hebei Sanhe Thermal (220MW) LIAONING Tianjin Panshan Thermal (207MW) GANSU INNER MONGOLIA Li
Slide 44: EnergyAustralia – Financials
EnergyAustralia – Financials HK$M Local Currency 1H2023 1H2022 1H2023 1H2022 HK$M HK$M A$M A$M EBITDAF (before items affecting comparability) Customer (Retail) (1) 94 942 18 168 Energy (Wholesale) (1) 988 (144) 188 (26) Enterprise (Corporate) (1) (601) (652) (115) (116) Total EBITDAF 481 146 91 26 D
Slide 45: EnergyAustralia – Wholesale market conditions
EnergyAustralia – Wholesale market conditions Year Ahead Swap Prices (1) • Following the unprecedented increases in the cost of energy in 2022 300 (Ukraine war, extreme weather events, fleet availability and fuel supply), NSW Australia has seen prices ease significantly in Q1 2023 (improved 250 avai
Slide 46: EnergyAustralia – Customer operations
EnergyAustralia – Customer operations Customer Account Numbers Sales Volume & Revenue (1) Weighted Average Mass Market is the average accounts of our mass market customer base during the period Customer Churn and Accounts 45
Slide 47: EnergyAustralia – Customer operations
EnergyAustralia – Customer operations Supporting customers experiencing 67% of bills issued in 1H2023 hardship were E-bills • 40k customers utilising EnergyAssist • Compared with 5% in 2015 programme • Improving 3pts since 1H2022 20 Ombudsman complaints/10k accounts • 69% reduction since 2015 24pts
Slide 48: Apraava Energy – Financials
Apraava Energy – Financials HK$M Local Currency 1H2023 1H2022 1H2023 1H2022 HK$M HK$M Rs M Rs M Renewables 54 270 566 2,638 Thermal (Jhajjar) 332 159 3,478 1,553 Thermal (Paguthan & Corporate) (12) (41) (126) (401) Transmission 21 110 220 1,075 Others(1) 27 (4) 283 (39) ACOI 422 494 4,421 4,826 Rene
Slide 49: Apraava Energy – Performance and projects
Apraava Energy – Performance and projects Performance Expanding our renewable generation portfolio • Continued strong performance of solar and transmission • Continued progress on construction of the new 251MW portfolios partially offset by lower wind generation. Sidhpur wind project in Gujarat, exp
Slide 50: Taiwan Region and Thailand – Operating Earnings
Taiwan Region and Thailand – Operating Earnings Coal margin at Ho-Ping improved by revised tariff adjustment mechanism effective from 1 July 2022 200 186% excl. FX 212 3 4 101 Operating Earnings 100 91 (HK$M) - 11 Thermal (1) Solar Others (100) 8 (126) (200) 1H2022 FX Thermal Solar Others 1H2023 Per
Slide 51: Taiwan Region and Thailand – Financials
Taiwan Region and Thailand – Financials HK$M Local Currency 1H2023 1H2022 1H2023 1H2022 HK$M HK$M M M Thermal 91 (129) NT$356 (NT$474) Renewables 12 9 THB48 THB39 Others (1) (5) ACOI 102 (125) Thermal 91 (129) NT$356 (NT$474) Renewables 11 8 THB48 THB35 Others (1) (5) Operating earnings / Total earn
Slide 52: CLP Group – Generation and energy storage portfolio – 30 Jun 2023
CLP Group – Generation and energy storage portfolio(i) – 30 Jun 2023 17,979 Equity MW and 5,098 MW Long Term Purchase (total 23,077 MW) ENERGYAUSTRALIA total 5,789MW* HONG KONG total 8,268MW* Operational Operational Yallourn 1,480 / 1,480 (c) Castle Peak A&B 4,108 / 4,108* (c) Mount Piper 1,430 / 1,
Slide 53: CLP Group – Renewable generation portfolio – 30 Jun 2023
CLP Group – Renewable generation portfolio(i) – 30 Jun 2023 2,727 Equity MW and 881 MW Long Term Purchase (total 3,608MW) - 15.6% of CLP total generation portfolio MAINLAND CHINA 1,957 MW ENERGYAUSTRALIA 909 MW* APRAAVA ENERGY 712 MW Operational Operational Operational Wind 1,059 MW Wind 615 MW Wind
Slide 54: CLP Group – Generation and energy storage capacity by fuel mix
CLP Group – Generation and energy storage capacity(i) by fuel mix 23,077 MW Attributable to CLP Group Operational Under construction Capacity by Total MW % MW % MW % Energy Type (a) + (b) (a) (b) Coal 9,719 42% 9,719 42% - - Gas 6,093 26% 5,173 22% 920 4% Nuclear 2,685 12% 2,685 12% - - Wind 2,260 1
Slide 55: CLP Group – Energy sent out – 1H2023
CLP Group – Energy sent out – 1H2023 TWh 20 CLP 1H2023 Generation 16.7 as Sent Out(1) 16.2 15 40% 43% 12.0 28% 24% 1H2023 10 9.5 9.5 8.7 2% 1H2022 2% 6% 2% 2% 23% 7% 22% 1H2022: 41.1 TWh 1H2023: 38.2 TWh 5 2.8 2.3 0.7 0.9 0 -5 1H2022 1H2023 1H2022 1H2023 1H2022 1H2023 1H2022 1H2023 1H2022 1H2023 Hon
Slide 56: Additional Resources
Additional Resources Scan or click on the QR codes to go to appropriate pages Interim Report 2023* Annual Report 2022 Sustainability Report Climate-related 2022 Disclosures Report 2022 Introductory Pack August 2023 Annual Results Presentation Annual 2022 * To be published in August 2023 55
Slide 57: Thank you
Thank you If you have any questions, please contact You can access this presentation and other IR team or email ir@clp.com.hk materials through our website or CLP IR App which can be downloaded onto your mobile device by clicking here or by scanning this code below. 56