Towngas Smart Energy Company Limited · HKEX:1083

Towngas Smart Energy — Towngas China Company — H1 2014 Earnings Presentation

15 slides from Towngas Smart Energy's earnings presentation, August 2014

  1. Slide 1: Towngas China 2014 Interim Results Presentation

    Towngas China (1083.hk) 2014 Interim Results Presentation 1

  2. Slide 2: Disclaimer

    Disclaimer 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 deve

  3. Slide 3: Territorial Coverage

    Territorial Coverage As of Jul 31, 2014 Heilongjiang 8 projects added, total 95 projects in 18 provincial regions Jilin Liaoning Hebei Inner Mongolia Beijing Profile Shanxi City-gas Shandong Jiangsu Midstream Shaanxi Henan Anhui 7 New City-gas Hubei Sichuan Chongqing Zhejiang 1 New Refilling station

  4. Slide 4: 2014 New Projects

    2014 New Projects 7 City-gas & 1 Refilling Station projects 1. 1 Leshan, Sichuan Heilongjiang 8 2. 2 Songyang, Lishui, Zhejiang 3 3. 3 Siping, Jilin Jilin 4. 4 Xingyi, Guizhou Liaoning 5. 5 Guyang, Baotou, Inner Mongolia Inner Mongolia Hebei 5 6. 6 Tongshan, Jiangsu 7. 7 Luliang, Yunnan Shandong .8

  5. Slide 5: Number of City-gas Projects

    Number of City-gas Projects 2006 2007 2008 2009 2010 2011 2012 2013 1H14 25 37 40 47 61 66 74 87 95 100 Injection from HKCG 90 8 80 New Acquired 14 70 Existing 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 1H14 5

  6. Slide 6: Financial and Operational Performance

    Financial and Operational Performance 6

  7. Slide 7: First Half Highlights

    First Half Highlights Operating Profit ñ33% After Tax Gas Sales Customer Project Number Volume Number ñ13% +8* +418,300* * Compared with 2013 Year End 7

  8. Slide 8: Results Highlights (Financial)

    Results Highlights (Financial) (HK$Mn) 1H13 1H14 Change Turnover Gas Sales 2,394 3,030 +27% Connection Fees 568 644 +13% 2,962 3,674 +24% Operating Profit After Tax 459 612 +33% Exchange Gain/(Loss) 74 (144) Profit attributable to 533 468 -12% shareholders Basic EPS (HK cents per share) 20.51 17.90

  9. Slide 9: Key Balance Sheet Items

    Key Balance Sheet Items (HK$Mn) Y.E.2013 1H2014 Change Total Assets 25,629 26,727 +4.3% Total Liabilities 12,150 13,135 +8.1% Total Equity 13,478 13,592 +0.8% Gearing Ratio* 20.9% 24.2% Note: * Definition of Gearing Ratio: Net Debt excluding HKCG loans (“ND”) to equity attributable to shareholders p

  10. Slide 10: Growing Gas Sales Volume

    Growing Gas Sales Volume (Bn m³) 1H13 1H14 Change Industrial 1.65 1.88 +13% Commercial 0.50 0.55 +10% Residential 0.78 0.87 +12% Total 2.93 3.30 +13% 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 *All JVs (100%) 2006 2007 2008 2009 2010 2011 2012 2013 1H13 1H14 10

  11. Slide 11: Gas Sales Volume of JVs

    Gas Sales Volume of JVs Volume (Mn m3) 1H13 1H14 Change Subsidiaries 766 867 +13% JCEs & Associates 1,545 1,747 +13% Chengdu JV 616 682 +11% Total 2,928 3,296 +13% Excluding Chengdu 2,311 2,614 +13% Note: Chengdu JV with 13% shareholding is classified as financial investment 11

  12. Slide 12: Operational Highlights

    Operational Highlights Gas Sales Volume Mix (%) Productivity Customers No. (LHS) Residential Commercial Industrial Gas Volume/Employee (RHS) (Mn) (‘000 m³) 26% 10 306 26% 294 300 57% 57% 8 260 17% 17% 220 6 8.9 8.0 180 1H13 1H14 4 140 2 100 1H13 1H14 * All JVs (100%) 12

  13. Slide 13: 2nd NG Gate-Price Adjustments

    2nd NG Gate-Price Adjustments ´Effective 1 September 2014 ´Affect Non-residential customers ´Maximum Rmb0.4/m3 on Existing Gas Volume ´52 JVs Affected out of 93 ´Around 16% gas volume affected in 2014 13

  14. Slide 14: Sino-Russian Gas Supply

    Sino-Russian Gas Supply Russian Gas NE China Welcoming the Russian Gas •Expected arrival in 2018 •Ramping up to 38bn m³ per year Heihe Total City-gas projects Qiqihar Lianfu Harbin Songyuan Changlin Changchun Jilin Gongzhuling Siping Jitian Xinqiu/Dali Yanji Jianping Fuxin Tieling Chaoyang Shenyang

  15. Slide 15: Our Business: Expanding Coverage

    Our Business: Expanding Coverage 10 new projects / year Heilongjiang o Target: Jilin Liaoning o Penetration into neighboring cities Hebei Inner Mongolia Beijing Shanxi o Focusing in new territories: Shandong Shaanxi Henan Jiangsu Inner Mongolia Shanxi Anhui Hubei Sichuan Guangxi Chongqing Zhejiang H

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