CLP Holdings Limited · HKEX:2
CLP — Merger or Acquisition (November 2016)
12 slides from CLP's merger presentation, Nov 30, 2016
Slide 1: Analyst Briefing on the conditional agreement to acquire a 17% stake in Yangjiang Nuclear
CLP Holdings Analyst Briefing on the conditional agreement to acquire a 17% stake in Yangjiang Nuclear 30 November 2016
Slide 2: Disclaimer
Disclaimer This presentation contains some comments that may be construed or interpreted as relating to future events including our expectations about the performance of CLP Group's business. The comments are not audited and are based on a number of factors that we cannot control. We cannot be certa
Slide 3: Strategic rationale
Strategic rationale Key economic and strategic acquisition of 17% interest in 6,516 MW Yangjiang nuclear facility in Guangdong (1,108 equity MW) Aligned with our long term “Focus • Delivery • Growth” strategy increasing our footprint in one of our key markets, leveraging our core capabilities an
Slide 4: Purchase Consideration and Financing
Purchase Consideration and Financing Purchase Consideration RMB5.0 billion (around HK$5.6 billion) plus audited completion payment Total Investment (inclusive of Consideration above) Approximately RMB7.0 billion (around HK$7.8 billion) to full COD of 6 Units by 2019 Earnings Information
Slide 5: Appendix
CLP) pe Appendix
Slide 6: Transaction details
Transaction details Acquisition of a 17% stake in the 6,516 MW Yangjiang Current Shareholding Structure Nuclear Power Project from CGN Power Co., Ltd. Shareholding Structure Post Completion (CGN Power) and Guangdong Nuclear Investment Co. CGN CGN (GNIC) in Guangdong province in China Power Power
Slide 7: History of CLP nuclear investment
History of CLP nuclear investment 1985: Creation of Daya Bay joint venture with CGN with 25% equity investment in 1,968MW nuclear facility (Top left) 1985: Photo of Lord Lawrence Kadoorie, Former Chairman of CLP Holdings, with Deng Xiaoping, the former Chairman of the Central Military Commission of
Slide 8: Comparison of Yangjiang and Daya Bay
Comparison of Yangjiang and Daya Bay Daya Bay was the first large-scale commercial nuclear power station in Mainland China. Since its commissioning in 1994, Daya Bay has maintained an excellent safety record while supplying clean and reliable electricity to Hong Kong and Guangdong province. CLP and
Slide 9: Yangjiang nuclear reactor technology
Yangjiang nuclear reactor technology Incremental lessons-learnt upgrades of a proven design Yangjiang Units 1 & 2 CPR1000 25 Post-Fukushima modifications Daya Bay 16 modifications over CPR1000 further to previous development (raising reliability and safety capability) French M310 reactor technology
Slide 10: Experience and Capabilities
Experience and Capabilities CGN profile CGN has the largest nuclear fleet in China Operates 19 nuclear power units at 5 sites with 9 being built, supported by comprehensive R&D, design, construction and fuel procurement capability Strict regimes on safe operation and construction Regulatio
Slide 11: Guangdong electricity market in 2015
Guangdong electricity market in 2015 Supply & Demand in Guangdong Guangdong Fuel Mix 2015 Electricity consumption: 531 TWh in 2015 (growth in 2015: 1.4%; growth in 2014: 8.4% growth), with over half supplied by thermal units and 31% imported from western provinces 5% Hydro Installed capacity:
Slide 12: Guangdong electricity market - Outlook
Guangdong electricity market - Outlook Coal-fired will still be the majority while imported capacity will decrease in Guangdong’s fuel mix High utilisation hours can be expected for nuclear, especially Gen. II units Nuclear dispatch priority to stay due to national policy/international pledge