Enn Energy Holdings Limited · HKEX:2688
Enn Energy — H1 2012 Earnings Presentation
38 slides from Enn Energy's earnings presentation, Aug 28, 2012
Slide 1: 2012 Interim Results Analyst Presentation
2012 Interim Results Analyst Presentation 28th August 2012
Slide 2: Contents
Contents 1. Financial Highlights 2. Business Review 3. New Projects 4. Appendix
Slide 3: Financial Highlights
Financial Highlights (RMB million) 1H2012 1H2011 Change Revenue 8,774 7,202 21.8% Gross Profit 2,411 1,891 27.5% EBITDA 1,872 1,579 18.6% EBIT 1,558 1,324 17.7% Profit attributable to owners of 730 629 16.1% the Company EPS - Basic (RMB cents) 68.78 59.88 14.9% EPS - Diluted (RMB cents) 68.54 59.30
Slide 4: Dividend Policy
Dividend Policy The Board of Directors has resolved not to recommend payment of an interim dividend for 2012. Our dividend policy: – More subsidiaries have stepped into the mature stage. – The Group will balance the development of business and financial position to decide the dividend payout rat
Slide 5: Revenue Breakdown 1H2012
Revenue Breakdown 1H2012 2011 6.3% 0.8% 3.2% 19.3% 7.8% 1.3% 4.4% 22.7% 10.8% 12.2% 53.0% 58.2% 2010 4.4% 2.1% 23.5% 8.1% 10.8% 51.1% 1H2012 1H2011 Operating Segment Change % (RMB mil) (RMB mil) Gas connection 1,694 1,580 7.2% Gas c onnec t ion Sales of piped gas 5,107 3,863 32.2% S ales of piped ga
Slide 6: Analysis of Piped Gas Sales
Analysis of Piped Gas Sales Natural gas is our primary gas sales The sales revenue of natural gas accounted for 97.0% of the total sales of piped gas We expect all other piped gas users will be converted to piped natural gas users Volume Revenue 0.1% 0.4% 5.7% 2.6% 94.2% 97.0% Natural gas Coal
Slide 7: A Balanced Portfolio of Customers (by revenue)
A Balanced Portfolio of Customers (by revenue) Residential customers Gas refuelling stations Commercial / Industrial “C/I” customers Wholesale of gas 1H2012 2011 2010 Gas Connection 26.3% 28.5% 24.6% 73.7% 71.5% 75.4% Sales of piped gas, vehicle gas and wholesale gas 3.7% 12.2% 4.8% 11.8% 4.9% 12.5%
Slide 8: Margins Analysis
Margins Analysis During the Period, the overall gross profit margin increased by 1.2ppts, while the net profit margin decreased by 0.4ppts compared with the same period of 2011. Gross profit margin Net profit margin 27.5% (1H2011: 26.3%) 11.3% (1H2011: 11.7%) Reasons for change Gross profit margin
Slide 9: Financial Resources and Liquidity
Financial Resources and Liquidity (RMB million) At 30 Jun 2012 At 31 Dec 2011 Change Cash on hand 6,150 5,869 4.8% A/R Days 19 19 0 Total Debts 11,657 10,672 9.2% - Short-term loans 4,976 3,213 54.9% - Long-term loans 2,027 2,823 -28.2% - 10-year bonds 4,654 4,636 0.4% Net Gearing Ratio 57.7% 54.3%
Slide 10: Refinancing Plan
Refinancing Plan As of 30 Jun 2012 Refinancing Plan (RMB million) Total Debt 11,657 • We have around RMB6,150 million cash on hand while our working capital demands RMB1,200-1,500 million cash only, leading to a surplus cash of RMB4,650 million Short-term loans: • We have RMB5,490 million committed
Slide 11: CAPEX
CAPEX 3000 170 Injected by the JV partners when the project companies were formed. 2500 100 424 243 RMB million 2000 19 156 74 1500 44 2,650 2098 1000 1687 1694 1416 1282 1,310 1022 500 0 2005 2006 2007 2008 2009 2010 2011 1H2012 CAPEX for 2012 is estimated at RMB2.5 billion, and the proportion in
Slide 12: Contents
Contents 1. Financial Highlights 2. Business Review 3. New Projects 4. Appendix
Slide 13: Key Operational Data
Key Operational Data 1H2012 1H2011 Change Coverage & Gas Penetration Rates of PRC projects Connectable urban population coverage ('000) 53,389 49,135 8.7% Connectable households coverage ('000) 17,796 16,378 8.7% Natural gas penetration rate 41.0% 36.3% 4.7% Piped gas (including natural gas) penetra
Slide 14: Key Operational Data
Key Operational Data 1H2012 1H2011 Change Pipelines & Stations Length of intermediate & main pipelines (km) 19,952 17,264 15.6% Natural gas processing stations 116 103 13 Combined daily capacity of natural gas processing 32,285 24,818 30.1% stations ('000 m³) Vehicle gas refuelling stations 276 203
Slide 15: Gas Sources
Gas Sources To accommodate the anticipated fast-growing demand for natural gas, the Group has several ways to secure gas sources: Take-or-pay Contracts 1. Take-or-pay contracts Pipelines Annual Supply in 2012 ( mil m3) Signed 15-25 years take-or-pay contracts with various pipelines, secured supply
Slide 16: Gas Sources
Gas Sources The phase-by-phase completion and commencement of operation of pipelines Pipelines Designed capacity (mil m3/yr) Operation schedule West-East Pipeline II 30,000 In operation since 2011 Shaanxi-Beijing III 15,000 In operation since 2011 Qinshen Pipeline 8,000 In operation since 2011 Tai
Slide 17: Gas sources – Upstream projects
Gas sources – Upstream projects The Group has invested in various upstream projects to ensure secured gas sources in long run and to provide clean energy variety to ensure continuous business growth – Import and export rights of LNG and other kinds of energy – LNG plants • The group has 5 LNG plan
Slide 18: Vehicle Gas Refuelling Stations
Vehicle Gas Refuelling Stations CNG refuelling stations LNG refuelling stations CNG refuelling stations since 2002 LNG refuelling stations since 2011 Number of approval obtained (including 28 refuelling stations through 440 Number of approval obtained 87 acquisition) Aggregated no. of CNG refuelling
Slide 19: Contents
Contents 1. Financial Highlights 2. Business Review 3. New Projects 4. Appendix
Slide 20: Project Development
Project Development Province Industrial Park Projects In 1H2012, the Group has secured 7 new (under existing city-gas projects) projects in China, providing an additional Anhui Bozhou Wuhu Modern Industrial Park (毫州蕪 connectable population of 420,000, and 12 湖現代產業園區) industrial parks under our exi
Slide 21: New projects: Gaocheng, Shenze, Wenan, Longyan
Project Gaocheng City Shenze County Wenan Industrial Longyan (藁城市) (深澤縣 ) Park Development Zone (文安工業園區) (龍岩開發區) Province Hebei Hebei Hebei Fujian Connectable 180,000 40,000 NA 170,000 Population Stakeholding 27.9% 55.8% 100% 70% Operational Administrative Region Administrative Region Industrial Par
Slide 22: New projects: Xinxiang Weifei, Qingdao, Wenzhou
Project Xinxiang Weifei City Qingdao Sino-German Wenzhou Wanquan Light (Tangzhuang Town) Industrial Ecopark Industrial Base Agglomeration Zone (青島中德生態園) (溫州萬全輕工基地) (新鄉衛輝市唐莊鎮產業集聚區) Province Henan Shandong Zhejiang Connectable 30,000 NA NA Population Stakeholding 100% 100% 100% Operational Industrial
Slide 23: Operational Locations
Operational Locations China Inner Mongolia (1 project) Liaoning (3 projects) 767,000 631,000 Connectable Urban Population: Hebei (10 projects) Beijing Municipality (2 projects) 3,819,000 361,000 (at end of 2011) Offshore gas project – 61,889,000 Vietnam Shandong (13 projects) 6,026,000 Additiona
Slide 24: Operational Locations
Operational Locations Anhui (9 projects) Guangdong (cont’d) Henan (7 projects) Jiangsu (cont’d) Yunnan (2 projects) 14. Bengbu 926,000 69. Zhaoqing 508,000 24. Xinxiang 1,013,000 38. Lianyungang 955,000 81. Wenshan 252,000 21. Chuzhou 300,000 71. Zengcheng, 40. Kaifeng 856,000 95. Hongze County 381,
Slide 25: Q&A Session
Q&A Session 24
Slide 26: Contents
Contents 1. Financial Highlights 2. Business Review 3. New Projects 4. Appendix
Slide 27: ENN Energy – A Leader in the Industry
ENN Energy – A Leader in the Industry ENN Energy (formerly known as Xinao Gas) is one of the first privately- owned clean energy distributor in the PRC. It was founded by Mr. Wang Yusuo and Ms. Zhao Baoju in 1993. In 1998, the Chinese government promoted the use of natural gas and encouraged pri
Slide 28: Gas Delivery Process
| on | ’ Assets owned by the Group: eG, CNG or LNG trucks ‘" Notes: Commercial users 7 (1) Gas delivery using either intermediate pipelines or CNG or LNG trucks. (2) Customers’ pipelines and metres which are not owned by the Group are within the customers’ premises and are not highlighted in this di
Slide 29: Immediate Revenue Inflow upon Connection
Immediate Revenue Inflow upon Connection Revenue / Cost Simplified model for a typical matured project Year 1 Year 3 Year 5 Year 7 Year 9 Year 11 Total Revenue Gas usage fee Connection fee Capex Free cash flow Connection fee dominates in early years when the project companies are signing up new cu
Slide 30: Connection Fee Amortization
Connection Fee Amortization As of 30 June 2012, 9 projects have adopted amortization method: Anhui Province - Fengyang Jiangsu Province - Huaian, Lianyungang Henan Privince – Xinxiang Hunan Province - Xiangtan, Changsha, Zhuzhou, Ningxiang Shandong Province – Rizhao Part of the connection fee in
Slide 31: Natural gas Price Reform in 2010
Natural gas Price Reform in 2010 Objectives Further liberalise the natural gas market Narrow down the difference between gas tariff in the PRC and the international market Enhance the ability of importing LNG from overseas to further promote the utilisation of natural gas Content Latest progress
Slide 32: New Natural gas Pricing Policy in 2011
New Natural gas Pricing Policy in 2011 Content Objectives A pilot reform on the pricing policy of natural gas was To loosen the grip of the ex-factory prices which failed launched on 26 Dec 2011 in Guangdong Province and to factor in consuming demands Guangxi Autonomous Region, with unified ceilin
Slide 33: China Natural Gas Industry Overview
China Natural Gas Industry Overview PRC Government’s Commitment to Developing Clean Energy China’s plan to achieve 40–45% reduction in carbon dioxide emission per unit of GDP by 2020 is driving national energy consumption towards cleaner fuels such as natural gas In connection with the 12th Five
Slide 34: China Natural Gas Industry Overview (Cont'd)
China Natural Gas Industry Overview (Cont’d) Natural Gas Consumption Natural Gas Production Natural gas consumption in China has grown from 2.4 bcf/d in 2000 to 10.6 bcf/d in 2010, representing a CAGR of 16.0% Natural gas production in China has increased from 2.6 bcf/d in 2000 to 9.1 bcf/d in
Slide 35: Approximate conversion factors
Approximate conversion factors To billion cubic trillion British billion cubic million tonnes million tonnes million barrels Natural gas and LNG meters thermal feet NG oil equivalent LNG oil equivalent NG units From Multiply by 1 billion cubic meters NG 1 35.30 0.90 0.73 36.00 6.29 1 billion cubic f
Slide 36: Awards from International Media and Organisations
Awards from International Media and Organisations Yazhou Zhoukan “1000 Global Chinese Enterprise” for 2007 2012 All-Asia Executive Team Ranking: Institutional Best CEO, Rank no.1 (Power Sector) “Chinese Business 500” for 2001, 2002, 2003, 2004, Investor Best CFO, Rank no.1 (Power Sector) 2005, 2006
Slide 37: ENN Energy – Share Price Performance
ENN Energy – Share Price Performance 2,500 ENN Energy 2,000 1,500 Hang Seng China Enterprise Index 1,000 500 Hang Seng Index - ENN Energy Hang Seng Index Hang Seng China Enterprise Index 36
Slide 38: Disclaimer
Disclaimer The information provided to you in this presentation does not constitute or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of ENN Energy Holdings Limited (the "Company") nor shall it form the basis of, nor can it