Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — Towngas China Company — FY2013 Earnings Presentation
25 slides from Towngas Smart Energy's earnings presentation, Mar 24, 2014
Slide 1: Towngas China Company Limited
Towngas China Company Limited (2088 fd)
Slide 2: statements. These forward-looking statements reflect the company’s view on some
This presentation and subsequent discussion may contain certain forward-looking statements. These forward-looking statements reflect the company’s view on some future events and involve known and unknown risks and uncertainties and other factors which may cause actual performance and development dif
Slide 3: Mainland China market highlights
o Double digit organic growth o >10 new City Gas projects a year Mainland China o Urbanization drives housing demands o Air Quality issue favors gas consumption o Upstream Supply remains bottleneck, but improving o Natural gas reformed happened, was smoothly dealt with o Operating costs on the rise,
Slide 4: 4
4 4
Slide 5: Projects covering provincial regions
Heilongjiang projects covering Jilin Liaoning provincial regions Inner Mongolia Hebei Piped city-gas Shandong City-gas Anhui Jiangsu Midstream Sichuan Zhejiang Chongqing 14 new city-gas (2013) Hunan Jiangxi Fujiang Guizhou 5 new city-gas (2014) Guangxi Guangdong 1 new Filling Station (2014) As of Fe
Slide 6: City-gas projects map
City-gas 19 projects 12. Feicheng, Shandong 10. 9 Cangxian, Hebei 17 18. Xingyi, Guizhou 23. Zhengpugang, Anhui 10 11. Mengcun, Hebei 19. Lishui Songyang, Zhejiang 18 34. Mianzhu, Sichuan 11 12. Dafeng, Jiangsu 19 20. Baotou Guyang, Inner Mongolia Heilongjiang 20 45. Boxing, Shandong 13. Jiangping,
Slide 7: Injection from HKCG
2006 2007 2008 2009 2010 2011 2012 2013 1Q14 25 37 40 47 61 66 74 87 93 100 Injection from HKCG 90 New 6 80 Existing 14 70 8 5 60 6 50 8 40 7 87 3 66 73 10 61 30 2 20 40 47 37 10 25 25 0 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 7
Slide 8: Financial and Operational Performance
FINANCIAL AND OPERATIONAL PERFORMANCE
Slide 9: Strong profit growth of 32% to HK$1,106Mn
o Strong profit growth of 32% to HK$1,106Mn o Exchange gain accounted for 13.6% o Gas sales volume grew by 15% (excluding 13% owned Chengdu JV) o Total 93 JVs (17 provincial regions) 14 projects added in 2013 6 projects added in 2014 9
Slide 10: Profit attributable to shareholders and EPS
(HK$Mn) 2012 2013 Change Turnover Gas Sales 3,972 5,265 +33% Connection Fees 1,211 1,451 +20% 5,183 6,716 +30% Profit attributable to shareholders 841 1,106 +32% Basic EPS (HK cents per share) 34.17 42.46 +24% Full Year Dividend (HK cents per share) 6 8 +33% 10
Slide 11: Total assets, liabilities and equity
(HK$Mn) 2012 2013 Change Total Assets 21,255 25,628 +21% Total Liabilities 9,968 12,150 +22% Total Equity 11,287 13,478 +19% Gearing Ratio* 18.6% 20.9% Note: * Definition of Gearing Ratio: Net Debt excluding HKCG loans (“ND”) to equity attributable to shareholders plus ND 11
Slide 12: Shared turnover and operating profit
(HK$Mn) 2012 2013 Change Shared Turnover 10,103 12,046 +19% Operating profit 1,025 1,213 +18% Margin Profit margin ratio 10.1% 10.1% Maintained Exchange difference 45 160 Administration expenses (116) (140) Financial cost (113) (127) Profit attributable to shareholders 841 1,106 +32% *All JVs on att
Slide 13: Gas Sales Volume (Bn m³)
(Bn m³) 2012 2013 Change Industrial 3.10 3.50 +13% Commercial 0.89 0.99 +11% Residential 1.32 1.45 +10% Total 5.31 5.94 +12% 5.3 5.9 5 4.7 Gas Sales Volume (Bn m³) 4.0 4 3.2 3 2.7 2.1 2 1.3 1 0 2006 2007 2008 2009 2010 2011 2012 2013 *All JVs (100%) 13
Slide 14: Volume by subsidiaries, JCEs and Chengdu JV
Volume (Mn m3) 2012 2013 Change Subsidiaries 1,318 1,575 +20% JCEs & Associates 2,890 3,246 +12% Chengdu JV 1,108 1,124 +1% Total 5,316 5,945 +12% Excluding Chengdu 4,208 4,821 +15% Note: Chengdu JV with 13% shareholding is classified as financial investment 14
Slide 15: Net Profit (HK$Mn)
1200 1,106 1000 800 841 Net Profit (HK$Mn) 600 709 400 436 200 265 202 145 0 -200 -256 HKCG became a major shareholder in 2007 -400 2006 2007 2008 2009 2010 2011 2012 2013 15
Slide 16: Gas price adjustment pass-through
• Effective 10 July 2013 • Affect non-residential consumption • 49 JVs affected • Progress-to-date: o 46 out of 49 affected JV passing-through o 98% of the affected volume passing-through o 2013 financial impact not significant 16
Slide 17: Gas sales volume mix and customers
Gas Sales Volume Mix (%) No. of Customers & Efficiency Residential Commercial Industrial Customers No. (LHS) Gas Volume/Employee No. (RHS) (Mn) (‘000 m³) 287 293 25% 10 300 24% 58% 59% 8 250 17% 17% 6 200 8.5 7.6 2012 2013 4 150 2 100 2012 2013 * All JVs (100%) 17
Slide 18: January 2013 share placement
16 January 2013 No. of share placed Net Proceeds raised Over-subscription 18
Slide 19: Shareholding structure
Henderson Land Development Company Ltd (12 HK) 41.50% Hong Kong and China Gas Company Ltd (3 HK) 62.31% Towngas China Company Limited (“TCCL”) (1083 HK) 19
Slide 20: Future Outlook
FUTURE OUTLOOK ”
Slide 21: National NG Demand Forecast 2020 vs 2010
300 National NG Demand Forecast 400 250 200 2020 vs 2010 Bn m3 230 150 272% 100 108 50 47 25 0 2000 2005 2010 2015 2020 (Source：BP, Guangdong Oil & Gas Association, CNPC) 21
Slide 22: Natural gas supply, manufacturing and urbanization drivers
o Increasing natural gas supplies: - W2E2, W2E3 - W2E4, W2E5 (planning) - Myanmar pipeline - Russia Eastern Pipeline o China remains a worldwide manufacturing base o Increase in urbanization rate: 47.5% 53.4% 57% 70% Urbanization rate: Year: 2010 2013E 2020E 2035E o No change in connection fee polic
Slide 23: An Immense National Grid
An Immense National Grid A A Heilongjiang 2 6 Jilin 3 Xinjiang Liaoning 1 Beijing Inner Mongolia NG Source Commissioning Year Capacity Hebei 1 West to East 1 2004 17 Bn m3 Shanxi Ningxia Shandong Qinghai 2 West to East 2 2011 30 Bn m3 Gansu Jiangsu 3 Central Asia 2010 2014 >55 Bn m3 Shaanxi Henan 4
Slide 24: 10 new projects / year
Heilongjiang Jilin o Target: 10 new projects / year o Penetration into neighboring cities Liaoning Inner Mongolia Beijing Hebei Shanxi o Focusing in new territories: Shandong Henan Jiangsu Shaanxi Anhui Inner Mongolia Sichuan Chongqing Hubei Zhejiang Shanxi Guizhou Hunan Jiangxi Fujian Guangxi Yunna
Slide 25: Thank You
Thank You at