Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — FY2022 Earnings Presentation
35 slides from Towngas Smart Energy's earnings presentation, Mar 16, 2023
Slide 1: Towngas Smart Energy FY2022 Annual Results
Towngas Smart Energy (1083.HK) FY2022 Annual Results 16 March 2023
Slide 2: 2022 Review and 2023 Overview of Year-start
2023 Overview of Year-start 2022 Review Embrace Brightening Future Instability of Energy costs surged。 Tension of Mild energy prices volatility International Gas source supply under International Stabling gas sources supply Situation tension Situation Relieved Fluctuating Weak demand for n
Slide 3: FY2022 Business Highlights
FY2022 Business Highlights City-gas Renewable Energy Note: Excluding Shanghai Gas Gas Sales Volume Accumulative 15.25 billion m³ 5% 80 zero-carbon industrial parks City Gas Projects 183 projects 7new projects PV (As at March 2023) Customers Contracted:1.8 GW 15.93 million 840,000 new customers Grid-
Slide 4: ESG
s235 AREA BRAG Towngas Smart Energy Company Limited ESG
Slide 5: Maintain Industry Leading Role, Usher Sustainable Development
Maintain Industry Leading Role, Usher Sustainable Development Symposium Covering All Aspects of Responding to Risks Related to Sustainable E, S and G Development Corporation Hong Kong Management Invest Climate-related and Nature-related Directive Guide Association Hong Kong The first company in Hong
Slide 6: Continuous Promotion of ESG Development and Garner International Recognition
Continuous Promotion of ESG Development and Garner International Recognition Significantly improved in 3 ESG ratings Major awards and recognition Overall Rating 2019 2020 2021 2022 15 19 43 68 Bloomberg Businessweek / Chinese Edition Significantly improved ESG Leading Enterprise Awards and Asset Man
Slide 7: Attain Recognition from Capital Market
Attain Recognition from Capital Market HKQAA The Asset Hong Kong Green and Sustainable The Asset Triple A Sustainable Capital Finance Awards 2022 Markets Awards 2022 Towngas Smart Energy (1083.HK) won： The group issued US$200 million sustainability- “Outstanding Award for Green and Sustainable Bond
Slide 8: Agenda
AGENDA Financial Highlights P.9 Business Review Gas Business P.12 Smart Energy o Renewable Energy P.19 o “Gas+” Energy Management P.28 Business Guidance P.32
Slide 9: Financial Highlights
akg Lat lan jwngas SI ergy Company Limited Financial Highlights
Slide 10: FY2022 Annual Results
FY2022 Annual Results – Towngas Smart Energy (1083.HK) (Unit: HK＄ million) 2021 2022 Changes Revenue [.] [.] [.] Piped Gas & Energy Sales 13,951 16,664 19% Connection Fees 2,429 2,412 1% Extended Businesses 745 997 34% 17,125 20,073 17% Operating Profit 2,121 1,656 22% Corporate Financial Expe
Slide 11: Healthy Financial Position
Healthy Financial Position (Unit: HK＄ billion) 31 Dec 2021 31 Dec 2022 Total Assets 54.2 52.9 Net Assets 25.2 23.9 Cash and Bank Balances 4.1 4.0 Total Borrowings 19.5 19.7 Net Gearing Ratio* 37.9% 39.7% Headquarter Average Cost of Debt 3.9% 3.8% Credit Rating: ：Baa1 ：BBB+ *Note: After exiting from
Slide 12: Business Review: Gas Business
BUSINESS REVIEW Gas Business Smart Energy o Renewable Energy o “Gas+” Energy Management
Slide 13: Steady Improvement in Operating Scale Despite the Impact of the Pandemic
Steady Improvement in Operating Scale Despite the Impact of the Pandemic Total Gas Sales City-gas Customers Volume * Projects Total 15.25 billion m³ 5% 183 projects 15.93 million Dollar Margin 0.01 840 thousand 0.50 RMB RMB 7 new projects new customers * Note: Excluding Shanghai Gas Towngas Smart En
Slide 14: Continuous Growth in Gas Volume, Stable Gas Sales Mix
Continuous Growth in Gas Volume, Stable Gas Sales Mix Gas Sales Volume Gas Sales Mix (Unit: billion m3) 5% 15.25 2022 14.58 Wholesale Wholesale 2.73 and Others 2.40 Residential and Others 18% 20% 16% 19% 2021 Commercial Industrial 7.85 7.67 11% 12% Commercial 1.72 1.65 2.79 3.02 Residential 53% 2021
Slide 15: Upstream Gas Cost Surged Sharply, Dollar Margin Gradually Stabilised
Upstream Gas Cost Surged Sharply, Dollar Margin Gradually Stabilised Selling Price, Cost and Dollar Margin Dollar Margin Trend (Unit: RMB/m³) (Unit: RMB/m³) 2021 2022 Changes 0.51 0.50 0.50 Residential 2.65 2.71 0.06 Commercial 3.11 3.46 0.35 Selling Price Industrial 2.94 3.74 0.80 FY2021 1H2022 FY2
Slide 16: Enhance the Commercial Value of the Group's Superior Resources and Gas Source Distribution Capability
Enhance the Commercial Value of the Group’s Superior Resources and Gas Source Distribution Capability Capability of self-managed gas source coordination 2022: ≈1 billion m³ 2023: estimated to reach 2 billion m³, reducing the gas supply cost by 0.1 RMB/m³ Domestic resources Import resources Speed up
Slide 17: National Natural Gas Consumption and the Proportion to One-off Consumable Energy Continue to Rise
National Natural Gas Consumption and the Proportion to One-off Consumable Energy Continue to Rise The proportion of amount of national natural gas consumption to one-off consumable energy continue to rise from 8.5% in 2022 to 15% in 2040. Customers Commercial Customers Industrial New Projects City G
Slide 18: Shanghai Gas Updates
Shanghai Gas Updates • On 16 March 2023, TSEL entered into a legally binding MOU with Shenergy Group and Shanghai Gas, pursuant to which the Parties agreed to the exit of TSEL from its entire investment of 25% equity interest in Shanghai Gas. • The consideration payable to TSEL for the Exit is to be
Slide 19: Business Review: Smart Energy
BUSINESS REVIEW Gas Business Smart Energy o Renewable Energy o “Gas+” Energy Management
Slide 20: Positive Policy Environment Supports Prosperous Achievements in 2023
Positive Policy Environment Supports Prosperous Achievements in 2023 Industrial Distributed User-side Energy Energy & Carbon PV Storage Management • Tariff during peak demand • Control measures in total carbon • Peak-trough price difference &Market Policy increased emissions and intensity widened •
Slide 21: Achieved 1GW Grid-connected PV in High-quality Industrial Parks
Achieved 1GW Grid-connected PV in High-quality Industrial Parks Zero-carbon Industrial Parks (80) PV: Accumulative Contracted and Grid- connected (GW) • Total power consumption in the parks: • Number of contracted clients: > 500 150 billion kWh/year • Industry-leading growth in scale in 2022 • Poten
Slide 22: An Industry Leader with Rapid Development in Industrial Park PV
An Industry Leader with Rapid Development in Industrial Park PV Average Contract Capacity > 30MW Key Success Factors (Industrial Parks established for 1 year ) Top 20 Industrial Parks • Marketing: Government support, gas synergy Ranked by Contract Capacity (MW) * 63 57 55 • Service : Carbon manageme
Slide 23: Return on PV Projects above Industry Average
Return on PV Projects above Industry Average Average PIRR >10% (Projects in operation for over 6 months) PIRR of Industrial Park Model Policy & Market Favor Outperformed Return of Projects TSEL Market • PV module prices dropped High (PV+Service, Strong PV Tariff Bargaining Power) PV only • Peak ta
Slide 24: Establish A Leading One-stop Energy Management Enterprise
Establish A Leading One-stop Energy Management Enterprise • Contract capacity of 1 billion kWh in Guangdong • Nationwide trading licenses Towngas Green Power Towngas Green Power Trading Towngas • Scale acquisition of CEA • PV cloud/Energy&Carbon • Carbon service contracts Carbon Asset Digital Energy
Slide 25: Realise Profits in 2023
Realise Profits in 2023 Profitability Illustration 2022 2023 2024 2025 • Only 0.1GW of annualised PV Grid- • >1.2GW of annualised • >3.5GW of annualised • >6GW of annualised effective effective grid-connected due to connected * effective grid-connected effective grid-connected grid-connected pandemi
Slide 26: Industry Exemplification and Large-scale Replication
Industry Exemplification and Large-scale Replication Zero-carbon Industrial Park Near-zero Carbon Business Low-carbon Plants Smart Energy Storage - Hailing, Taizhou - Futian, Shenzhen - IPE Group - Jiaxing, Zhejiang Low-carbon Development in Near-zero Carbon Business Low-carbon Plants Benchmark User
Slide 27: Provide PV Solutions in Cooperation with China Power (SPIC)
Provide PV Solutions in Cooperation with China Power (SPIC) Large-scale Industrial Users Business Users Industrial Parks Projects Under Construction Hung Hom Industrial Shatin Commercial Building of Industrial Park : 2.4MW Building Project: 175KW Project: 150KW Towngas Smart Energy Limited | 2022 An
Slide 28: Business Review: Gas+ Energy Management
BUSINESS REVIEW Gas Business Smart Energy o Renewable Energy o “Gas+” Energy Management
Slide 29: Gas+: Intelligent Energy Management to Improve Efficiency and Reduce Costs
“Gas+”: Intelligent Energy Management to Improve Efficiency and Reduce Costs Penetrate Energy Service Module • low-carbon and District clean Heating District • safe & reliable Gas Heating 39 + Vapour Government, Industrial Parks • Complementary Heating C&I- multiple energies Hot water Integrated Ene
Slide 30: Overview of Gas+ Energy Management Development in 2022
Overview of “Gas+” Energy Management Development in 2022 Initial Results of Development 1.2 billion m³ gas sales volume will Numbers of Newly Developed Project Revenue of Heating Service Increased be generated after 5 years Increased Rapidly Greatly (RMB million) Enlarge the value of city gas assets
Slide 31: Key Projects of Gas+ Energy Management
Key Projects of “Gas+” Energy Management Higher Vocational Education Factory in Qingyuan Industrial Park in Nanjing Air-sourcing + efficient Air 8 Tonnes of steam/hour Conditioning + Gas Gas Boiler+Pipe with high Condensing Boiler, efficiency, saving industrial covering the heating and cooling d
Slide 32: Business Guidance
s235 AREA BRAG Towngas Smart Energy Company Limited Business Guidance
Slide 33: 2023 Business Guidance
2023 Business Guidance City-gas Renewable Energy Gas Sales Volume Zero-carbon Industrial Parks 12% 40 New Connections Accumulated PV 900,000 Grid-connected Capacity Dollar Margin 3 GW 0.52 RMB/m³ Towngas Smart Energy Limited | 2022 Annual Results 33
Slide 34: Thank You
akg Lat lan jwngas SI ergy Company Limited THANK YOU
Slide 35: 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
Towngas Smart Energy Company — FY2022 Earnings Presentation on 6ix