Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — Towngas China Company — FY2012 Earnings Presentation
27 slides from Towngas Smart Energy's earnings presentation, March 2013
Slide 1: Towngas China 2012 Annual Results Roadshow Presentation
SRE aa Towngas China Towngas China Company Limited GWE HK) 2012 Annual Results 2013, Roadshow Presentation
Slide 2: looking statements. These forward-looking statements reflect the company’s
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 di
Slide 3: Company Overview Financial and Operational Performance Future Outlook
▌ Company Overview ▌ Financial and Operational Performance ▌ Future Outlook 3
Slide 4: Company Overview
Company Overview
Slide 5: 74 projects covering provincial regions
Heilongjiang Jilin 74 projects covering Liaoning Hebei 15 provincial regions Piped city-gas Shandong Jiangsu 66 JVs (2011) Anhui 7 new city-gas (2012) Zhejiang Sichuan Chongqing 1 new midstream (2012) Jiangxi Hunan Fujiang As at Dec 2012 Guangxi Guangdong 5
Slide 6: New city-gas and midstream projects 2012
City-gas 7 projects 1 Liaoning Wafangdian 遼寧省瓦房店 2 ShandongZhaoyuan 山東省招遠 3 Jiangxi Yifeng 江西省宜豐 Heilongjiang 4 Liaoning Xinqiu 遼寧省阜新新邱 Jilin 5 Hebei Qinhuandao 河北省秦皇島市 4 6 Fujian Changting 福建省長汀縣 Liaoning 18 Hebei 5 7 Shandong Pingyin 山東省平陰 Gas consumption in 5 years’ time: 562Mn m3 Shandong 7 2 To
Slide 7: New city-gas projects 2013
City-gas 4 projects Heilongjiang 1 Shandong Feicheng 山東省肥城 Jilin Liaoning 2 Anhui Maanshan Zhengpugang 安徽省馬鞍山鄭浦港 Hebei 3 Sichuan Mianzhu 四川省綿竹 4 1 4 Shandong Boxing 山東省博興 Shandong Jiangsu Anhui Gas consumption in 5 years’ time: 352Mn m3 2 3 Zhejiang Total investment: RMB747Mn Sichuan Chongqing Jiang
Slide 8: Growth in number of JV projects
2006 2007 2008 2009 2010 2011 2012 1Q2013 25 37 40 47 61 66 74 78 90 Injection from HKCG 80 New 4 70 Existing 8 5 60 6 50 8 7 40 3 74 10 61 66 30 2 47 20 37 40 10 25 25 0 2006 2007 2008 2009 2010 2011 2012 1Q2013 2012: include Liaoning Wafangdian midstream project 8
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Slide 10: 2012 Highlights
▌ Record high profit ▌ Improvement in gas margins ▌ 74 JVs in total, 7 city-gas & 1 midstream projects added ▌ 2013 Achievements: - 4 city-gas projects added - Record high market capitalization at HK$19.6Bn (15 Mar 2013) 10
Slide 11: Turnover and profit attributable to shareholders
(HK$Mn) 2011 2012 Change Gas Sales 3,288 3,972 +21% Connection Fees 1,033 1,211 +17% Turnover 4,321 5,183 +20% Profit attributable to shareholders 709 841 +19% Basic EPS (HK cents) 28.84 34.17 +19% Full year dividend per share (HK cents) 5 6 +20% 11
Slide 12: Total assets, liabilities and equity
(HK$Mn) 2011 2012 Change Total Assets 18,183 21,255 +17% Total Liabilities 7,884 9,968 +26% Total Equity 10,299 11,287 +10% Gearing Ratio* 19.6% 18.6% Note: * Definition of Gearing Ratio: Net Debt excluding HKCG loans (“ND”) to equity attributable to shareholders plus ND 12
Slide 13: Turnover breakdown and profit
Turnover 2011: 2012: HK$ 8.5Bn +19% HK$ 10.1Bn 6% 5% 18% Piped-gas 18% Connection Fees 76% Others 77% (HK$Mn) 2011 2012 Change Piped-gas 6,439 7,805 +21% Connection Fees 1,478 1,770 +20% Others 539 528 -2% Total Turnover 8,456 10,103 +19% JV profit contribution 803 1,025 +28% Improvement Profit marg
Slide 14: Gas Sales Volume
(Bn m³) 2011 2012 Change Industrial 2.79 3.10 +11% Commercial 0.76 0.89 +18% Residential 1.12 1.32 +18% Total 4.67 5.32 +14% 5 5.3 4.7 Gas Sales Volume (Bn m³) 4 4.0 3 3.2 2.7 2 2.1 1 1.3 0 2006 2007 2008 2009 2010 2011 2012 *All JVs (100%) 14
Slide 15: Shared Equity Basis volume
Shared Equity Basis Volume (Mn m3) 2011 2012 Change Subsidiaries 1,024 1,135 +11% JCEs & Associates 964 1,146 +19% Chengdu JV 136 144 +6% Total 2,124 2,425 +14% 15
Slide 16: Net Profit (HK$Mn)
1000 841 800 709 Net Profit (HK$Mn) 600 400 436 200 265 202 145 0 HKCG became a major -200 -256 shareholder in 2007 -400 2006 2007 2008 2009 2010 2011 2012 16
Slide 17: Market Capitalization (HK$Bn)
Historical high on 15 Mar 2013 21.0 HK$19.6Bn 18.0 Market Capitalization (HK$Bn) 15.0 12.0 9.0 6.0 3.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2012 2013 *Bloomberg 17
Slide 18: Gas Sales Volume Mix and Number of Customers
Gas Sales Volume Mix (%) No. of Customers Customers No. (LHS) Residential Commercial Industrial Gas Volume/Employee No. (RHS) (Mn) 287 (‘000 m³) 280 8.0 280 24% 25% 258 58% 60% 6.5 240 16% 17% 5.0 200 7.64 6.67 6.0 2011 2012 3.5 160 2.0 120 2010 2011 2012 * All JVs (100%) 18
Slide 19: January 2013 share placement
16 January 2013 No. of share placed Proceeds raised Over-subscription 19
Slide 20: Shareholding structure Jan and Mar 2013
1 January 2013 15 March 2013 66.18% 62.37% 27.11% 20% 5.87% 7.95% 5.53% 4.99% Commonwealth Enerchina Institutional Hong Kong Commonwealth Enerchina Institutional Hong Kong Bank of (622 HK) & Retail Investors & China Gas Bank of (622 HK) & Retail Investors & China Gas Australia (3 HK) Australia (3 HK
Slide 21: Group structure of TCCL
Henderson Land Development Company Ltd (12 HK) & Dr. Lee Shau Kee 41.50% Hong Kong and China Gas Company Ltd (3 HK) 62.37% Towngas China Company Limited (“TCCL”) (1083 HK) 21
Slide 22: Future Outlook
Future Outlook
Slide 23: National NG Demand Forecast
National NG Demand Forecast 250 (Bn m³) 2010 2015 2015vs2010 230 City-gas & Industrial 67 145 +117% 200 Power Generation & 41 85 +108% Chemical Engineering Bn m3 Total 108 230 +114% 150 108 100 47 50 18 25 15 0 1990 1995 2000 2005 2010 2015 Source：BP / Guangdong Oil & Gas Association (OGA) 23
Slide 24: Natural gas supply and urbanization drivers
• Increasing natural gas supplies: - W2E2 - W2E3 - Burma pipeline - Russia Eastern Pipeline • China remains a manufacturing country • Increase in urbanization rate: Urbanization rate: 47.5% 53.4% 57% 70% Year: 2010 2013 2020 2035 • Increasing housing supply: 2011-2015 36 Mn Affordable home 2013 6.3
Slide 25: Natural gas sources in China
A A Heilongjiang 2 6 Jilin 3 Xinjiang Liaoning 1 Beijing Inner Mongolia NG Source Commissioning Year Capacity West to East 1 2004 17 Bn m3 Hebei 1 Shanxi Ningxia Shandong Qinghai West to East 2 2011 30 Bn m3 2 Gansu Jiangsu Eventually 40 Bn Shaanxi Henan 3 Central Asia 2010 m3 4 Hubei Anhui 4 Sichua
Slide 26: Extending new territories
Heilongjiang Jilin Liaoning Beijing new projects / year Hebei Shandong Extending new territories : Jiangsu Sichuan Anhui Guizhou Chongqing Hunan Jiangxi Zhejiang Fujiang Yunnan Guangxi Guangdong 26
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