Petrochina Co., Ltd. Class A · SSE:601857
Petrochina Co., Ltd. Class A — Merger or Acquisition (July 2020)
23 slides from Petrochina Co., Ltd. Class A's merger presentation, July 2020
Slide 1: Pipeline Restructuring Transactions Presentation
Pipeline Restructuring Transactions Presentation July 2020 1
Slide 2: Forward-looking Statements
Forward-looking Statements This announcement contains “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. These forward-looking statements are, by
Slide 3: Board and Management
Board and Management Mr. LI Fanrong Vice Chairman Mr. DUAN Liangwei Executive Director and President Mr. WU Enlai Secretary to the Board of Directors Mr. CHAI Shouping Chief Financial Officer 3
Slide 4: Agenda
Agenda 1 Introduction of Pipeline Restructuring Transactions 2 PetroChina’s Strategies and Outlook 3 Q&A Session 4
Slide 5: Introduction of Pipeline Restructuring Transactions
Introduction of Pipeline Restructuring Transactions 5
Slide 6: Transactions Overview
Transactions Overview 29.9% of the equity interests in PipeChina Base Consideration: RMB268.7 billion Remainder to be satisfied in cash Equity interests and cash consideration Disposal of target assets* PipeChina All Equity Holdings 72.26% 100% (Ownership percentage varies) 100% Provincial PetroChin
Slide 7: Commercial Rationales
Commercial Rationales Focus more on upstream exploration and development, and actively promote downstream market expansion Help relieve the pressure relating to capital expenditures Make full use of the nationwide oil and gas storage and transmission facilities to improve operational efficiency and
Slide 8: Shareholding Structure of PipeChina
Shareholding Structure of PipeChina China National China China China CNOOC PetroChina Reform Council for SINOPEC CIC Silk Road Chengtong Petroleum & Insurance Gas and Company Holdings Social Gas SASAC International Fund Co., Holdings Chemical Investment Power Limited Corporation Security Company Co.
Slide 9: Transactions Timetable
Transactions Timetable Transaction Timetable 23 July Approval of the board of directors on the Transactions and the Agreements and release announcement 12 August Shareholder circular dispatch 28 September Extraordinary General Meeting 30 September Completion of the Transactions, subject to satisfact
Slide 10: Overview of Target Assets
10 According to audited data as of Appraisal Base Date of December 31, 2019, the total assets for the shares and assets in the Transactions amount to RMB 378.08 billion, accounting for 13.8% of the Company’s total assets, and the book value 100% The Initial Oil and Gas 70% Shandong Gas Pipeline Co.,
Slide 11: Transactions Consideration
Transactions Consideration The appraised value of the Target Assets is around RMB268.7 billion with the appraisal premium of around RMB45.82 billion The transactions consideration was based on the appraised value of the Target Assets, being approximately RMB268.7 billion. The final consideration
Slide 12: Use of Cash
Use of Cash Returns to Shareholder Part of the cash will be distributed to Shareholders in dividends Investments Development of upstream exploration and production and downstream business to further increase the value of oil and gas industry chain Transformational development of the Company to a
Slide 13: Synergy with PipeChina
Synergy with PipeChina PipeChina • Make full use of the nationwide oil and • Pipeline investment, construction, gas storage and transmission facilities operations and maintenance of the to improve operational efficiency and national pipeline network, effectively value creation capabilities promoting
Slide 14: Actively Participate in Corporate Governance of PipeChina
Actively Participate in Corporate Governance of PipeChina PetroChina with two board seats Participate in decision-making on major operational and financial matters such as future pipeline network operations and investment and financing plans, budget preparation, financial reports, dividend distribut
Slide 15: Risk Disclaimers
Risk Disclaimers • Upon completion of the Transactions, PetroChina Pipelines Co., Ltd., Pipeline Branch, and other subsidiaries of the Company will no longer be consolidated into the financial statements of the Group; associated companies or joint ventures will no longer apply the equity method for
Slide 16: Market-Based Transactions to Ensure Fairness
Market-Based Transactions to Ensure Fairness In order to ensure the fairness of the Transactions, the Company closely followed relevant laws and regulations as well as market principles, and engaged relevant intermediaries to assist the Company in the Transactions and provide professional advice
Slide 17: PetroChina's Strategies and Outlook
PetroChina’s Strategies and Outlook 17
Slide 18: Implementation of Strategies
Implementation of Strategies Innovation Resources Market Internationalization Green and Low- carbon Strategy 18
Slide 19: Strategic Initiatives
Strategic Initiatives 1. Actively Develop Exploration and Production Business 2. Efficiently Develop Refining and Chemical Business and Marketing Business 3. Accelerate the Development of Natural Gas Business Six Initiatives 4. Optimize the Development of Overseas Business 5. Accelerate Digital Tran
Slide 20: Key Development Targets
Key Development Targets Stabilize Oil Control Refining Green & & & Grow Gas Grow Chemicals Low-carbon Maintain effective and stable Optimize refining and Further improve the natural production in domestic crude chemical structure gas industry value chain oil production Continue to increase o
Slide 21: Transformation to a Low-carbon Development Model with Focus on Natural Gas Business
Transformation to a Low-carbon Development Model with Focus on Natural Gas Business Leverage our strengths in the industrial chain Further reduce cost of resource Accelerate the layout of diversified natural gas business Strengthen differentiated marketing, lock in target markets and key projects fo
Slide 22: Q&A Session
PHAHAAARH ARAB) PetroChina Company Limited Q&A Session 22
Slide 23: Investor Relations
Investor Relations Media Relations Tel: (852)2899-2010 Tel: (852)2894-6231 Fax: (852)2899-2390 Fax: (852)2576-1990 Email: hko@petrochina.com.hk Email: petrochina@hkstrategies.com 23
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