Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — China Jinjiang Environment Holding — Investor Presentation (April 2017)
45 slides from Zheneng Jinjiang Environment's investor presentation, April 2017
Slide 1: Corporate Presentation
Corporate Presentation April 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. Company Overview 2. Operational Review 3. Financial Highlights 4. Industry Outlook 5. Growth Strategy 6. Investment Merits 7. Appendix 3
Slide 4: 1. Company Overview
1. Company Overview 4
Slide 5: About Jinjiang Environment
About Jinjiang Environment Jinjiang Environment Results Overview First mover and leader as well as private operator RMB’00000000 FY2016 FY2015 Change in the Waste-To-Energy (WTE) industry in the PRC Revenue 26.32 19.36 +35.9% Established PRC’s first WTE plant using Gross Profit 10.49 8.19 +28.1%
Slide 6: Our Expansion Journey
Our Expansion Journey 1998 - 2003 Phase I: How it all began: Budding In 1997, developed CFB technology for WTE in cooperation with Zhejiang University Phase II: Maturing & Strengthening In 1998, industrialised CFB technology with Obtained funding from IFC in 2004 the completion of the 1st CFB
Slide 7: Highly Experienced Management Team
Highly Experienced Management Team WANG Yuanluo WANG Wuzhong WANG Ruihong XU Yongqiang Choo Beng Lor CEO, Executive Chairman Deputy General Manager, Deputy General Manager, Chief Financial Officer Financial Controller Executive Director Executive Director Vice President, China Senior certified
Slide 8: Differential-density CFB Incineration Technology
Differential-density CFB Incineration Technology In close collaboration with with Zhejiang University, developed and modified CFB technology for commercial use. In particular, “domestic waste CFB WTE technology" won the 2006 National Science and Technology Progress Award (2nd grade). The diffe
Slide 9: Differential-density CFB Incineration Technology
Differential-density CFB Incineration Technology CFB Moving Grate Tailored for China's municipal solid waste which is more Generally applicable to developed countries, because the Applicable Areas complex in composition, lower in calorific value and solid waste has higher calorific value and lower m
Slide 10: 2. Operational Review
2. Operational Review 10
Slide 11: FY2016 Operational Statistics
FY2016 Operational Statistics Electricity Generation (MWh) On-grid Electricity (MWh) 2,314,300 1,709,690 16.6% 15.1% 1,485,770 1,984,690 FY2015 FY2016 FY2015 FY2016 Steam Supply (‘000 tons) Waste Treatment (‘000 tons) 8,134 1,992 17.4% 35.7% 6,928 1,468 FY2015 FY2016 FY2015 FY2016 11
Slide 12: Our Extensive Footprint in China
Our Extensive Footprint in China The most established —— started in 1998 The greatest in number —— 19 facilities in operation (1) The largest in capacity —— 27,430 tons/day (1) 19facilities 19 facilitiesininoperation operation 44facilities facilitiesunder in construction construction 15new 15 newfac
Slide 13: Key Projects At A Glance
Key Projects At A Glance Designed Capacity Project Name Location (tons/day) Model Latest Progress Hohhot Hohhot, Inner Target to complete by 1,000 BOO Construction Updates New Energy Mongolia 3Q 2017 Qitaihe Green Qitaihe, Target to complete by 1,000 BOO Energy Heilongjiang 2Q 2017 Zibo Linzi, Targe
Slide 14: Overview of Projects in Preparation
Overview of Projects in Preparation Designed Capacity Project Name Location (tons/day) Model Latest Progress Yueyang Sunrise WTE Yueyang, Hunan 1000 BOO Target to complete by 2Q 2018 Facility Province Baishan Green Energy WTE Baishan, Jilin Province 1000 BOO Target to complete by 4Q 2018 Facility Li
Slide 15: Recently Acquired Projects
Recently Acquired Projects Zhejiang Zhuji Bafang Wenling Green Thermal Power Co., Ltd. New Energy Co., Ltd. Zhejiang Area: 204 Acres Area: 110 Acres Capacity: 1,050 tons/per day Capacity: 800 tons/per day BOT Model (Commenced operation in Feb 2016; 29 years BOO Model concession period) Highlights
Slide 16: Latest Acquisition
Latest Acquisition Ecogreen Energy Private Limited Project Name: Lucknow integrated waste management project Area: 104 acres Capacity：1500tons/day BOT model (Operational from June 2017; 30-year concession period) First overseas and India project Similar waste composition with China; benefits of
Slide 17: 3. Financial Highlights
3. Financial Highlights 17
Slide 18: Revenue Analysis
Revenue Analysis Revenue 2015 (RMB’million) 2,632 14% 35.9% 17% 69% 1,936 EMC BOT Construction WTE 2016 11% 28% 61% EMC BOT Construction WTE FY2015 FY2016 18
Slide 19: Profit Analysis
Profit Analysis （RMB million） Gross Profit EBITDA Net Profit 42.4% 52.0% 49.6% 22.9% 22.7% 40.7% 1,306 1,049 598 819 1,008 444 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 Gross Profit Gross Profit Margin EBITDA EBITDA Margin 净利润 Net Profit 净利润率 Net Profit Margin Note: (1) Gross profit margin calculate
Slide 20: Healthy Capital Structure
Healthy Capital Structure Total Assets & Net Assets （Million CNY） 9,730 7,764 5,840 6,571 Total Assets 4,591 2,842 3,098 3,495 Net Assets 31 Dec 2013 31 Dec 2014 31 Dec 2015 31 Dec 2016 Interest-bearing Debt/Total Assets EBITDA/Interest 39.7% 30.8% 33.6% 8.9 20.6% 8.2 7.3 7.5 31 Dec 2013 31 Dec 2014
Slide 21: Healthy Cash Flows
Healthy Cash Flows （RMB million） -1375 492 1043 2016 -976 638 485 2015 -488 502 41 2014 2013 -497 -37 437 Operating Cash Flow Financing Cash Flow Investing Cash Flow 21
Slide 22: Ratio Analysis
Ratio Analysis Return on Assets Accounts Receivables Turnover (days) 6.06 118.10 5.74 2015 2016 63.84 Return on Investment 12.85 12.76 2015 2016 2015 2016 22
Slide 23: 4. Industry Outlook
4. Industry Outlook 23
Slide 24: WTE Industry Sustainable Growth with Huge Potential
WTE Industry Sustainable Growth with Huge Potent Total Municipal Solid Waste Continues Incineration Treatment Capacity Increases to Increase Significantly Unit: million tons Unit: 1,000 tons / day 323 245 221 1,044 702 457 602 482 201 418 352 90 2010 2014 2019E 2010 2014 2019E Others Incineration La
Slide 25: WTE industry Benefitting from New Policies
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 Ministry of e
Slide 26: Waste Incineration Technology Trends
Waste Incineration Technology Trends CFB Technology Suitable for typical waste conditions in the PRC The stability of the CFB incineration process coupled with a wind-hood mechanism, improves waste treatment capacity Modular incineration process with double-loop wind circulation Medium to lo
Slide 27: 5. Growth Strategy
5. Growth Strategy 27
Slide 28: 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 29: 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: 47,490 Total: 43,890 In Preparation 3,600 In Construction 10,000 I
Slide 30: 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 31: 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 Current projects under construction (Zh
Slide 32: EMC business
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 33: Expand internationally
In the future, we will … 4. Expand internationally Focusing on Southeast 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,
Slide 34: 6. Investment Highlights
6. Investment Highlights 34
Slide 35: Investment Highlights
Investment Highlights Industry – Sustainable Growth with Huge Potential Position – First-mover and Leader in China's WTE Industry Network – Well-positioned with Most Extensive Footprints in China Technology – Exceptional Technical Expertise and R&D Capabilities Acquisition – Experienced and Outperfo
Slide 36: Investment Highlights: Dividend
Investment Highlights FY2016: Recommended final tax-exempt cash dividend of 5.05 Singapore cents per share Not less than 50% Our Directors intend to declare dividends of not less than 50% of our net profits attributable to our shareholders for FY2016 and FY2017* * Investors should note that all the
Slide 37: 7. Appendix
7. Appendix 37
Slide 38: 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 39: WTE Business Models
WTE Business Models BUILD—OWN— OPERATE (“BOO”) Undertaken by Company Financing Design Construction Operations Maintenance • Financed through equity and bank loans secured by the project company • Project company can charge waste treatment fee and on-grid tariff throughout the business operation peri
Slide 40: 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 41: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Installed Waste Project Total Electricity Estimated / Investment Percentage of capacity as of Treatment Name of WTE Project Model Constructed or Designed Supply Fee Actual Date Concession Amount Ownership by Latest Fee Facility Location (BOO/ Acquired
Slide 42: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Percentage Installed Project Electricity Estimated / Investment of Total Designed capacity as of Waste Name of WTE Project Model Constructed or Supply Fee Actual Date Concession Amount Ownership Treatment Latest Treatment Fee Facility Location (BOO/ Ac
Slide 43: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Percentage Total Installed Project Electricity Waste Estimated / Investment of Designed capacity as Name of WTE Model Constructed or Supply Fee Treatment Fee Actual Date Concession Project Location Amount Ownership Treatment of Latest Facility (BOO/ Ac
Slide 44: Awards and Accolades
Awards and Accolades Top 10 Most Influential Company in Area of Solid Waste (2014) The Top Ten Largest Investor of WTE PPP Project in PRC ( PPP ) 2015 Top 10 Most Influential WTE Enterprises in China ( WTE ) (2015) Green Responsibility Award (2016) by World Economic and Environmental Confere
Slide 45: Thank You!
Thank You ! JINJIANG ENVIRONMENT ch GB) ta te A ew = WS] 45 (9 iuipa BUN cd
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