Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — FY2021 Earnings Presentation
30 slides from Towngas Smart Energy's earnings presentation, Mar 17, 2022
Slide 1: Towngas Smart Energy FY2021 Annual Results
Towngas Smart Energy (1083.HK) FY2021 Annual Results 17 March 2022
Slide 2: Financial Overview
je SSS AER Towngas Smart Energy Financial Overview
Slide 3: Stable Performance with Resilient Growth
Stable Performance with Resilient Growth (Unit: HK$ million) 2021 2020 Change Revenue Piped Gas & Energy Sales 13,951 10,228 +36% Connection Fees 2,429 2,210 +10% Extended Businesses 745 388 +92% 17,125 12,826 +34% Operating Profit 2,121 1,811 +17% Profit Attributable to Shareholders (未扣除可换股债券
Slide 4: Healthy Financial Position: Stable Dividend Payout Ratio
Healthy Financial Position Stable Dividend Payout Ratio 40% 38% 34% 33% 30% 31% 30% 20% 10% 0% 2017 2018 2019 2020 2021 4
Slide 5: RMB/USD Average Exchange Rate
RMB/USD Average Exchange Rate 2019 2020 2021 2022e Avg Exchange Rate: -4% Avg Exchange Rate:-1% Avg Exchange Rate:+7.1% Avg Exchange Rate:+0.9% 7.4 7.2 7 6.8 Average: 6.6 Average: RMB 6.93 RMB 6.89 6.4 6.2 Average: RMB 6.44 Average: 6 RMB 6.39 5.8 1/1 12/3 21/5 30/7 8/10 17/12 25/2 5/5 14/7 22/9 1/1
Slide 6: Healthy Financial Position
Healthy Financial Position (Unit: HK$ billion) 31 Dec 31 Dec 17 Mar 31 Dec 2021 2020 2022 2020 Total Assets 54.2 42.9 P/E Ratio 7.67x 7.18x Net Assets 25.2 22.6 P/B Ratio 0.6x 0.91x Cash & 4.1 2.3 Bank Balances BBB+ Total Borrowings 19.5 11.5 Credit Rating: Interest Coverage 6.1x 7.8x Baa1 Net Geari
Slide 7: Operation Performance – City Gas
Operation Performance – City Gas 7
Slide 8: Operation Highlights – Stable Growth for Long-Term Progress
Operation Highlights – Stable Growth for Long-Term Progress Gas Sales Volume City-Gas Projects Customers m3 14.6 billion New 5 New 0.95M Total 176 Total 15.09M +21% 8
Slide 9: Operation Performance – Sustainable Growth in Gas Sales Volume
Operation Performance – Sustainable Growth in Gas Sales Volume 2019-2021 Sustainable Gas Sales Mix Growth in Gas Sales Volume (Unit: Billion m3) +21% 2021 Wholesale/Power Plant +8% 14.6 Distributed 0.4 Energy 12.0 Distributed 11.1 2.0 Wholesale Industrial Energy 0.3 /Power Plant 53% 0.1 50% 2020 1.6
Slide 10: Operation Performance – Pressure on Margin & Decrease in Unit OPEX
Operation Performance – Pressure on Margin & Decrease in Unit OPEX Selling Price, Cost & Unit Margin Unit OPEX Selling Price 2019 2020 2021 (Unit: Rmb/m3) (Unit: Rmb/m3) Residential 2.56 2.59 2.65 Commercial 3.22 2.99 3.11 0.42 0.41 0.39 Industrial 2.76 2.46 2.94 Wholesale 2.32 2.09 2.83 Average Sel
Slide 11: Development Strategy – Establishing Flexible Gas Source Procurement
Development Strategy – Establishing Flexible Gas Source Procurement Flexible Gas Source from Gas Source Piped Gas, Gas Storage and LNG Procurement Strategy Overseas Caofeidian LNG terminal to be commissioned and 1 million- tonnes long-term LNG contract will be executed by end 2022. Based on 2021 a
Slide 12: Development Strategy – Strengthened Value-Added Services
Development Strategy – Strengthened Value-Added Services Steam and Heating Supply Business “Online+Offline” Model Brings Gas Volume Growth Drives Extended Business Contributed 0.76 billion m3 in gas volume for 2021 & Online Offline the equivalent of 4 billion m3 forecast for 2025 Platform + Communit
Slide 13: New Project Development – Shanghai Gas
New Project Development – Shanghai Gas Transition Period Supplemental agreement signed to extend transition period — The results of Shanghai Gas are not reflected in the Group’s profit in 2021 Capital Injection Completed in July 2021 Operations Gas volume for FY2022 expected to exceed 9 billion m3.
Slide 14: Development Strategy – Consistent Gas Safety Management
Development Strategy – Consistent Gas Safety Management Gas Industry Proactive Assured Intelligent Standard Safety Control Project Quality Pipeline Network In-house practice adopted Regular safety assessment Self-owned pipe factory with Building integrated platform as industry standard and proactive
Slide 15: Mainland Hydrogen Energy Development
Mainland Hydrogen Energy Development Capitalising on Towngas’ extensive hydrogen transmission experience in Hong Kong & partaking in pilot hydrogen projects in key mainland regions Monitoring hydrogen market development & proactively participating in hydrogen production, refuelling and blending
Slide 16: Operation Performance – Renewable Energy
Operation Performance – Renewable Energy 16
Slide 17: Policy Support
Policy Support From energy consumption & Regional integrated energy Helping 17 high-energy Constructing new power intensity dual control system system combining electricity, consumption industries systems using new energy as to carbon peaking & carbon heating (cooling) & gas conserve energy & reduce
Slide 18: Five-Year Plan
Five-Year Plan Year 2025 15/8 Net Profit from Net Profit from Renewable 2024 12/5 200 Gas Energy 2023 9/3 160 2022 6/1 120 Target/Connected （GW） 80 Zero-Carbon Industrial Parks (No. of parks) Smart Energy Ecology Leading Energy Energy & & Carbon Carbon Management Platform Management Expert 2025 18
Slide 19: Strategic Layout
Strategic Layout Conditions Circum-Bohai Bay Strong Economy High Sunlight Intensity Yangtze River Delta High Electricity Price High Energy Consumption Greater Bay Area Rooftop Spaces Major Industrial Cities Contract Signed (Include HKCG projects with 32 registration update in progr
Slide 20: Gas Synergy
Gas Synergy Gas Business Renewable Energy Business Political & Client Service Strategic Technical Digital Business Resources Capabilities Partners Resources Intelligence Network Global Talent Joint Motivational Recruitment Efforts Culture Program 20
Slide 21: Competitive Capacity
Competitive Capacity JiLin Electric Power & Towngas Smart Energy（Jinan）Co., Ltd. Shanghai Electric & Towngas Energy Technology CO.,Ltd. Ruihua (Shenzhen) Integrated Smart Energy Co., Ltd. Towngas Contemporary Smart Energy Technology Co.,Ltd. (Suzhou) Collaborative Professional Partners Towngas Smart
Slide 22: Energy & Carbon Management 2022
Energy & Carbon Management 2022 Upstream Zero-Carbon Smart Industrial Park Integrated Energy Carbon Smart Wind & Solar Engineering Green Power Power Storage Management Platform Strategic plan＞ Commercialisation 10% reduction Key opportunities: Nation-wide Building a carbon 1GW green of new
Slide 23: Global Smart Energy Innovation Competition
Global Smart Energy Innovation Competition Providing application scenarios and funding for zero-carbon technology Attracting top zero-carbon technologies Digitalisation Decarbonisation Integration CO2 Synthesised Negative Heterojunction Carbon 23 Countries Methanol Photovoltaic HIT PV Chinese Ac
Slide 24: ESG
je SSS AER Towngas Smart Energy ESG 24
Slide 25: Benchmarked International ESG Standards
Benchmarked International ESG Standards Benchmark with top six international ESG ratings December 2021: o The Group has been recognised by Sustainalytics ESG ratings for the first time In 2022: o Included into FTSE Russell ESG Index o Submitted S&P Global ESG assessment and expected incorporat
Slide 26: Outlook
Je ASAE Towngas Smart Energy 26
Slide 27: Outlook
Outlook 30/60 new opportunities Natural gas continued to be a main clean energy as the sustainable growth of its national consumption and ratio in primary energy Nation NG Consumption As percentage of (Bn m3) Primary Energy Consumption 2021 372.6 10% 2030 >500 15% Urbanisation ratio of 65% in
Slide 28: 2022 Results Guidance
2022 Results Guidance Gas Business Steadily Upwards Smart Energy Rapidly Expands FY2022 gas sales volume growth >70% Zero-carbon smart industrial parks: +40 (More than 12% if excluding Shanghai Gas） Cumulative grid-connected installation: 1GW New connection: +1 million households Smart ene
Slide 29: Thank You
333 SAE MA Towngas Smart Energy Thank You
Slide 30: Disclaimer
Disclaimer This presentation and corresponding discussion may contain certain forward- looking statements, including statements regarding our intent, belief or current expectations with respect to Towngas Smart Energy’s businesses and operations, market conditions, results of operation and financial
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