Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — Jinjiang Environment — H1 2017 Earnings Presentation
37 slides from Zheneng Jinjiang Environment's earnings presentation, Aug 23, 2017
Slide 1: 1H2017 Results Presentation
1H2017 Results Presentation 23 August 2017
Slide 2: Important Notice
Important Notice This document has been prepared by the China Jinjiang Environment Holding Limited ( "Jinjiang Environment" or the "Company"), solely as presentation materials to be used by the Company’s management. It may contain projections and forward-looking statements that reflect the Company’s
Slide 3: Contents
Contents 1. At a Glance 2. Financial Highlights 3. Operational Review 4. Growth Strategy 5. Q&As 3
Slide 4: 1. At a Glance
ee eK 1. Ata Glance
Slide 5: About Jinjiang Environment
About Jinjiang Environment Jinjiang Environment First mover and leader as well as private operator in the Waste-To-Energy (WTE) industry in the PRC Established PRC’s first WTE plant using Circulating Fluidised Bed (CFB) incineration technology in 1998 and built a track record of close to 20 year
Slide 6: Business Overview
Business Overview Description Scale and Capacity Revenue Breakdown • Treatment of municipal solid waste • 21 WTE facilities in 12 provinces, and conversion into electricity with autonomous regions and centrally- the following revenue streams: administered municipalities in the WTE business is the ma
Slide 7: Important Milestones
Important Milestones Established in 1998, Jinjiang Environment is the first and currently the largest Waste-To-Energy 2015 (WTE) operator (by treatment capacity) in the PRC. Completed expansion: Tianjin Sunrise and 2011 Wuhan Jinjiang WTE Facilities Acquired: Jilin Commenced: Suihua Green Ener
Slide 8: 2. Financial Highlights
ip 2. Financial Highlights
Slide 9: Revenue Analysis
Revenue Analysis Revenue 1H2016 As at 30 June 2017 10% (RMB’million) 30% 60% 1,276 6.7% 1,196 EMC BOT Construction WTE 1H2017 11% 18% 71% EMC BOT Construction WTE 1H2017 1H2016 9
Slide 10: Profit Analysis
Profit Analysis （RMB million） As at 30 June 2017 Gross Profit EBITDA Net Profit 666 609 529 51.0% 52.2% 476 296 41.5% 272 39.8% 23.2% 22.8% 1H2016 1H2017 1H2016 1H2017 1H2016 1H2017 Gross Profit Gross Profit Margin EBITDA EBITDA Margin Net Profit Net Profit Margin Note: EBITDA = Profit before tax +
Slide 11: Healthy Capital Structure
Healthy Capital Structure Total Assets & Net Assets （Million CNY） 10,860 9,730 9,730 7,764 5,840 6,572 Total Assets 4,591 4,591 4,582 2,842 3,098 3,495 Net Assets 31 Dec 2013 31 Dec 2014 31 Dec 2015 31 Dec 2016 1H2016 1H2017 Interest-bearing Debt/Total Assets EBITDA/Interest 37.4% 40.1% 28.5% 33.6%
Slide 12: Healthy Cash Flows
Healthy Cash Flows （RMB million） -493 135 597 1H2017 -197 -213 371 1H2016 2016 -1375 492 1043 2015 -976 638 485 -488 502 41 2014 2013 -497 -37 437 Operating Cash Flow Financing Cash Flow Investing Cash Flow 12
Slide 13: 3. Operational Review
a 3. Operational Review 13
Slide 14: 1H2017 Operational Statistics
1H2017 Operational Statistics As at 30 June 2017 Electricity Generation (‘000 KWh) On-grid Electricity (‘000 KWh) 1,267,849 928,209 16.8% 15.0% 1,085,570 807,404 1H2016 1H2017 1H2016 1H2017 Steam Supply (‘000 tonnes) Waste Treatment (‘000 tonnes) 4,349 1,155 933 10.4% 23.8% 3,940 1H2016 1H2017 1H201
Slide 15: Our Extensive Footprint in China
Our Extensive Footprint in China The most established —— started in 1998 The greatest in number —— 21 facilities in operation The largest in capacity —— 29,230 tons/day 21 facilities in operation 4 facilities in construction & expansion 17 new facilities in preparatory stage Facility in operation Fa
Slide 16: Building a presence in India
Building a presence in India Secured 3 projects in India so far in 2017 • Gurgaon integrated waste management project • Lucknow integrated waste management project • Gwalior integrated waste management project Gurgaon project Lucknow project (In Preparatory stage) (In Construction) Gwalior project (
Slide 17: Construction & Expansion Updates
Key Projects At A Glance Project Name Location Designed Capacity (tons/day) Model Latest Progress Hohhot Hohhot, Inner Target to complete by 3Q Construction & Expansion Updates 1,000 BOO New Energy Mongolia 2017 Zibo Target to complete by 4Q Linzi, Shandong 2,000 BOO New Energy 2017 Target to comple
Slide 18: In Preparatory Stage
Overview of Projects in Preparation Designed Capacity Project Name Location (tons/day) Model Latest Progress Yueyang Sunrise WTE Facility Yueyang, Hunan Province 1,200 BOO Target to complete by 2Q 2018 Baishan Green Energy WTE Facility Baishan, Jilin Province 1,000 BOO Target to complete by 4Q 2018
Slide 19: Latest Project Acquisition
Latest Project Acquisition Ecogreen Energy Private Limited Project Name: Gurgaon integrated waste management project Area: 27.83 acres Capacity：1,165 tonnes/day BOT model (Operational in June 2019; 20-year concession period) Third overseas and India project Similar waste composition with China;
Slide 20: 1st Overseas Project Acquisition
1st Overseas Project Acquisition Ecogreen Energy Private Limited Project Name: Lucknow integrated waste management project Area: 104 acres Capacity：1500tons/day BOT model (Operational from April 2017; 30-year concession period) First overseas and India project Similar waste composition with Chin
Slide 21: 2nd Overseas Project Acquisition
2nd Overseas Project Acquisition Ecogreen Energy Private Limited Project Name: Gwalior integrated waste management project Area: 63.75 acres Capacity：606 tonnes/day BOT model (Operational from Feb 2020; 22-year concession period) Second overseas and India project Similar waste composition with C
Slide 22: 4. Growth Strategy
ee eK 4. Growth Strategy 22
Slide 23: In the future, we will …
In the future, we will … 2. Continuously improve technical capabilities 1. Maintain leading market position • Adopting advanced pre-treatment technologies from Europe, in synergy • Expanding waste treatment with our own capacity of existing facilities • Enhancing operating efficiency and • Through o
Slide 24: Maintain Leading Market Position
In the future, we will … 1. Maintain Leading Market Position Increase waste treatment capacity Achieve growth organically or through acquisitions Future waste treatment capacity and targets Annual Treatment Capacity (Tons) Total: 48,990 Total: 43,890 In Preparation 5,100 In Construction Total: 3
Slide 25: Continuously improve technical capabilities
In the future, we will … 2. Continuously improve technical capabilities Introduce advanced pre-treatment technology from Europe, coupled with our own R&D Raise operating efficiency and reduce emissions at our WTE facilities Waste Pre-treatment Procedures Municipal Solid Crushing Drying Sorting D
Slide 26: Diversifying in the WTE value chain
In the future, we will … 3. Diversifying in the WTE value chain Expand the scope of WTE business to the relevant areas Further develop EMC and third-party project management business Potential diversification areas for WTE 1. Turning waste into resources 2. Sludge Treatment 3. Animal Carcass Tre
Slide 27: EMC
In the future, we will … EMC The contract energy management business is a useful complement to the waste incineration power generation business, which brings business and operational synergies and adds to the company's management experience and expertise in the energy sector EMC business has hig
Slide 28: Expand internationally
In the future, we will … 4. Expand internationally Focusing on Asia and other developing countries Improve brand image and international reputation Market Development in Asia and other developing countries With the internationalisation of its WTE business as the next milestone goal, the Group
Slide 29: 5. Q&A
5. Q&A 29
Slide 30: Appendix
Appendix 30
Slide 31: Strong Shareholding Structure
Strong Shareholding Structure Strong shareholder background provides firm support for company’s development(1) 63.29% Mr Dou Zhenggang Hangzhou Jinjiang Group(2) 50.01% 49.99% China Green AEP Investments Other institutional Radec XIX Ltd and public investors Energy Limited (Mauritius) Limited 38.97%
Slide 32: China's WTE industry
China’s WTE industry Benefitting from New Policies More opportunities backed by major environmental protection laws and regulations issued to strengthen the incineration treatment of municipal waste The State Council's 13th Five-Year Plan eco- National Development and Reform Commission and the Minis
Slide 33: India's WTE Industry Outlook
India’s WTE Industry Outlook Overview of India’s WTE Market Currently, India's annual output of solid waste is 62 million tons, with 43 million tons per year to be collected, 11.9 million tons to be processed, and recycling rate of municipal solid waste at 75% -80%. The amount of waste generated
Slide 34: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Total Installed Waste Project Electricity Estimated / Investment Percentage of Designed capacity as of Treatment Name of Project Model Constructed Supply Fee Actual Date Concession Amount Ownership by Treatment Latest Fee WTE Facility Location (BOO/ or
Slide 35: Overview of Operational Facilities
Overview of Operational Facilities Actual Percentage Installed Project Total Total Electricity Waste Estimated / of capacity as of Name of Project Model Investment Constructed Designed Supply Fee Treatment Fee Actual Date Concession Ownership Latest WTE Facility Location (BOO/ Amount or Acquired Tre
Slide 36: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Percentage Total Installed Electricity Waste Project Estimated / Investment of Designed capacity as Supply Treatment Name of WTE Model Constructed or Actual Date Concession Project Location Amount Ownership Treatmen of Latest Fee Fee Facility (BOO/ Acq
Slide 37: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Percentage Total Installed Electricity Waste Project Estimated / Investment of Designed capacity as Supply Treatment Name of WTE Model Constructed or Actual Date Concession Project Location Amount Ownership Treatment of Latest Fee Fee Facility (BOO/ Ac