Ell Environmental Holdings Limited · HKEX:1395
Ell Environmental — Investor Presentation (October 2014)
30 slides from Ell Environmental's investor presentation, Oct 29, 2014
Slide 1: ELL Environmental Holdings Limited Corporate Presentation
@ ELL BA eee. ELL Environmental Holdings Limited a as Ee PRTe ICA BR A (Incorporated in the Cayman Islands with limited liability) Stock Code: 1395 CORPORATE PRESENTATION October 2014
Slide 2: Disclaimer
Disclaimer THESE MATERIALS HAVE BEEN PREPARED BY ELL ENVIRONMENTAL HOLDINGS LIMITED OR A SUBSIDIARY (THE “COMPANY”) SOLELY FOR USE AT THIS PRESENTATION AND ARE NOT FOR PUBLIC DISSEMINATION. THE SLIDES AND ANY OTHER MATERIALS USED IN THIS PRESENTATION ARE STRICTLY CONFIDENTIAL AND MUST BE TREATED AS
Slide 3: Agenda
Company Overview Industry Overview Financial Highlights Investment Highlights Growth Strategies A Environmental 3 Holdings Limited
Slide 4: Company Overview
COMPANY OVERVIEW ELL AA Environmental Holdings Limited
Slide 5: ELL
ELL Environmental Holdings Limited We are a wastewater treatment services provider in Jiangsu Province, China. We offer a one-stop approach to the provision of wastewater treatment services using the “Build — Operate — Transfer” (or BOT) model. We cover the whole spectrum of activities : - Design of
Slide 6: Integrated Business Model
Integrated Business Model We offer a one-stop approach to the provision of wastewater treatment services including the investment, design, construction and operation of wastewater treatment facilities. Investment & design Procurement of equipment & construction supervision Operation & maintenance EL
Slide 7: Milestones
Milestones Year Milestone 2013 Acquired the entire issued share capital of Greatcorp, which in turn owned the entire share capital of Rugao Honghao, which operates the Rugao Honghao Facility Entered into BOT agreement with Haian County Construction Bureau for the Haian Hengfa Facility (Phase II) 201
Slide 8: Milestones (cont'd)
Milestones (cont'd) Year Milestone 2004 Commencement of construction of the Rugao Hengfa Facility (Phase 1) 2003 Commencement of construction of the Haian Hengfa Facility (Phase 1) Entered into BOT agreement with the Rugao ETDZ Administrative Committee for the Rugao Hengfa Facility (Phase |) Establi
Slide 9: Corporate structure
强泰環保控股有限公司 恆發水務發展有限公司 如皋恆發水處理有限公司 海安恆發污水處理有限公司 宏皓國際有限公司 如皋宏皓金屬表面水處理有限公司 9
Slide 10: Haian Hengfa
This project involved the design, construction and operation of a municipal wastewater treatment facility, with a combined wastewater treatment capacity of 40,000 tons per day. Project location Haian Hengfa Haian County, Nantong City, Jiangsu Province Total investment up to 31 May 2014 Phase |: HK$2
Slide 11: Rugao Hengfa
Rugao Hengfa This project involved the design, construction and operation of a wastewater treatment facility, with a combined wastewater treatment capacity of 40,000 tons per day. Its treatment process features technology designed to treat a mixture of municipal and industrial wastewater. Project lo
Slide 12: Rugao Honghao
Rugao Honghao This project involved the operation of a wastewater treatment facility with a capacity of 3.500 tons per day. The treatment process features technology designed to treat various types of water-soluble heavy metals. Project location Rugao ETDZ, Rugao City, Jiangsu Province Total investm
Slide 13: Industry Overview
INDUSTRY OVERVIEW ELL AA Environmental Holdings Limited
Slide 14: Market Size and Opportunity
Market Size and Opportunity We have engaged CBRE Limited, an independent third party and industry consultant, to prepare an industry report that studied the overall wastewater treatment industry in the PRC (the “CBRE Industry Report”). 80 70 60 50 2006 2007 2008 2009 2010 2011 4 2012E 2013E 2014E 20
Slide 15: China's Wastewater Treatment Industry
China’s Wastewater Treatment Industry Water Consumption As a result of continued increase in water demand from urbanisation and_ industrial production, China’s water consumption has risen steadily over the years. Wastewater discharge Total wastewater discharge increased over years due to a continued
Slide 16: Volume of Municipal Wastewater Discharged and Treated
Volume of Municipal Wastewater Discharged and Treated -| syne Si ~yY WAL nG 2006 =. 2007-2008 2009 2010 2011S 2012E_-«-2013E_-—- 2014E_—-201SE "Market Opportunity (Difference between Volume of Wastewater Discharged and Treated (Billion Ton m Volume of Wastewater Treated (Billion Tons) Source: CBRE®,
Slide 17: Barriers to Entry
NN ELL Environmental Holdings Limited Capital Intensive Barriers to Entry: Certificate H | G H required for the design, construction and operation of the facilities
Slide 18: Three types of players in PRC wastewater treatment industry
There are three types of players in PRC wastewater treatment industry treatment industry in + Only a couple of foreign 4 players in wastewater y/ China + SOEs dominate the market due to their unique relationships with the government, their massive scale and their first-mover advantage B. Private (.
Slide 19: Shortage of water resource
Shortage of water resource Urgency to solve the water pollution problem Accelerating urbanisation Continued industrialisation Policy support and favourable regulatory framework Water tarriff adjustments ELL V Environmental Holdings Limited + China's severe scarcity of water will continue to spearhea
Slide 20: Wastewater Treatment — Jiangsu Province
Wastewater Treatment — Jiangsu Province The Jiangsu Province has the second highest nominal GDP of all the provinces in China, behind only Guangdong, and has a population of almost 80 million. Its secondary industry (manufacturing) accounted for just over 50% of its GDP in 2012, whilst the tertiary
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS ELL AA Environmental Holdings Limited
Slide 22: Financial Highlights: Operational Results
Financial Highlights 1. Operational Results Year ended 31 December Five months ended 31 May 2011 2012 2013 2013 2014 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 (Unaudited) Revenue 44,560 46,900 65,090 24,993 35,541 Gross profit 34,052 36,550 49,321 20,190 22,134 Profit before tax 31,325 34,007 47,974 2
Slide 23: Financial Highlights: Breakdown of Revenue by Facilities
Financial Highlights 2. Breakdown of Revenue by Facilities Year ended 31 December Five months ended 31 May 2011 2012 2013 2013 2014 % of total % of total % of total % of total % of total HkK$'000 revenue HK$'000 revenue HK$'000 revenue HK$'000 revenue HK$'000 revenue (Unaudited) Haian Hengfa Facilit
Slide 24: Financial Highlights: Financial Position
Financial Highlights 3. Financial Position As at 31 December As at 31 May 2011 2012 2013 2014 HK$‘000 HK$‘000 HK$‘000 HK$‘000 Non-current assets 207,707 209,432 292,124 285,075 Current assets 154,482 22,537 133,558 71,252 Current liabilities 124,435 164,080 81,892 27,652 Net current assets 30,047 60
Slide 25: Financial Highlights: Key Financial Ratios
Financial Highlights 4. Key Financial Ratios As at 31 December As at 31 May 2011 2012 2013 2014 Gearing ratio 13 13 0.7 O01 Current ratio 1.2 14 1.6 26 Quick ratio 1.2 14 1.6 26 Five months ended Year ended 31 December 31 May 2011 2012 2013 2014 Return on equity (%) 19.8 17.2 174 N/A Return on asset
Slide 26: Investment Highlights
INVESTMENT HIGHLIGHTS ELL AA Environmental Holdings Limited
Slide 27: Proven Track Record
Proven Track Record Guaranteed Tariffs Tariff Adjustments Environmental Protection Policies Strong Management Team ELL. V Environmental Holdings Limited + Proven track record in providing customised and integrated wastewater treatment services since 2002 + Experience in treating a range of wastewate
Slide 28: Growth Strategies
GROWTH STRATEGIES ELL AA Environmental Holdings Limited
Slide 29: Growth Strategies
+ Strengthen our market position through obtaining new New Wastewater wastewater treatment projects, by leveraging our track Treatment Projects record and close working relationships with the local government authorities + The upgrading of our existing facilities will allow us to Upgrade Existing pr
Slide 30: Thank You
THANK YOU ELL AA Environmental Holdings Limited
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