Enn Energy Holdings Limited · HKEX:2688
Enn Energy — H1 2021 Earnings Presentation
37 slides from Enn Energy's earnings presentation, Aug 23, 2021
Slide 1: 2021 Interim Results
2021 Interim Results Company Presentation 23rd August 2021
Slide 2: Solid Results amid Challenging Environment
Solid Results amid Challenging Environment Retail gas sales vol up 22.3% to 12.43 bil m3 Added C/I customers with 10.20 mil m3 installed designed daily capacity & 1.18 mil residential customers Added 20 city-gas and IE projects, further expanded operating regions Core profit growth of 18.4% to RMB3.
Slide 3: Carbon Neutrality Roadmap - City Gas
Carbon Neutrality Roadmap - City Gas • Control the ME intensity • Join MGP & China Oil & Gas Methane • Disclose ME data align with under 0.25% and continue to Alliance, set 2025 ME target MGP and refer to best improve data transparency practices, continue to optimize Methane • Establish for identifi
Slide 4: Carbon Neutrality Roadmap - IEB
Carbon Neutrality Roadmap - IEB 燃煤, 0.00% Photovoltaic, 15.64% Forecast of Carbon Emissions from Biomass, Energy Generating Facilities of IE Projects 17.04% Baseline 基准情景 scenario Hydrogen & Energy 能效提升 efficiency improvement Natural gas + 氢能地热, Geothermal 18,000 1,800 Electricity 3.00% 3.00% Natura
Slide 5: Upholding our Safety-Oriented Principle
Upholding our Safety-Oriented Principle Pay High Attention to Safety Pipeline Network Safety • ENN’s Chairman Wang, Vice • Complete the replacement & Chairman Mr. Zheng, President Mr. retrofitting of old pipelines Zhang and other senior management • Leak testing + corrosion testing have performed se
Slide 6: Strong Safety Assurance Capabilities
Strong Safety Assurance Capabilities Set a Solid Foundation Ensure Security Emergency Response Professional and Efficient High-pressure Pipeline Network Formulate an integrated emergency management system to cover all business scenarios Completed cathodic protection installations Arrange for a
Slide 7: Improve Safety by Applying Digital and Smart Products
Improve Safety by Applying Digital and Smart Products Establish a standardized, digitalized and smart safety management structure for all business scenarios Construction Visualization Unattended High and Medium- Patrol Inspection by Laser Camera pressure Citygate Stations worker Unattended Station
Slide 8: Content
Content 1. Results Review 2. Financial Highlights 3. Development Strategy 4. Appendix
Slide 9: Robust Growth
Robust Growth （RMB mil） 1H2021 1H2020 Change Key financial data Revenue 41,232 31,543 30.7% Segment Revenue Retail Gas Sales 23,138 18,191 27.2% Vol growth，gas price hike 74.3% Higher utilization, new projects Integrated Energy Business 3,662 2,101 commenced operation Value Added Business 837 663
Slide 10: Retail Gas Sales Business
Retail Gas Sales Business Natural gas consumption remained rapid growth driven by growing economy & low-carbon policy Adopted flexible pricing strategy and diversified resources to expand gas sales volume, seizing opportunities brought by the dual carbon goals, clean heating and coal replacement
Slide 11: Construction & Installation
Construction & Installation Continued to explore C/I users development potential, push forward industrial coal replacement progress Urbanisation & people’s pursuit of quality life, brings huge opportunity of urban residential users development 1H2021 Gross Profit (RMB mil) Interim Performance New
Slide 12: IE Business
IE Business Projects gradually ramped up, integrated energy sales increased significantly Provided customers with low-carbon/zero-carbon energy solutions which were customer-oriented, adaptive to local conditions, renewables prioritized use 1H2021 Gross Profit (RMB mil) Interim Performance IE sa
Slide 13: IEB – Industrial Park
IEB – Industrial Park Developed the industrial park’s IEB and support regional low-carbon improvement adaptive to local conditions and by focusing on energy saving and high efficiency, prioritizing the use of renewable energy and utilizing multi-energy sources An Industrial Park in Jiangsu A Food
Slide 14: IEB - Solar
IEB - Solar Boosted the sales of gas, electricity and heat leveraging on distributed solar, established smart integrated energy system in the region 19 projects in operation and under construction, installed capacity of 55MW, expect to reach 400MW by the end of the year Policy support: 2MW Solar P
Slide 15: IEB – EV Charging and Battery Swap Station
IEB – EV Charging and Battery Swap Station Utilized existing gas refuelling stations and customer resources to actively carry out EV charging and battery swapping business, tap into energy storage, facilitate the achievement of the dual carbon goals 13 charging stations in operation & more than 20
Slide 16: IEB – Integrated Services
IEB – Integrated Services Proactively expanded demand-side energy services incorporating carbon asset management, to enhance customer loyalty Changes in energy use in the context of the dual carbon goals Demand upgrade Service scope Safety first • Integrated energy solutions design Tracing carbon •
Slide 17: Value Added Business
Value Added Business Tapped into full range of home lifestyle services leveraging on kitchen solutions, innovative and diversified product mix and in-depth understanding on customer needs Strive to expand market share with kitchen products sales, heating solutions in Yantze River areas and smart
Slide 18: VAB – Clean Heating in Yangtze River Areas
VAB – Clean Heating in Yangtze River Areas It is estimated that the heating market in the middle and Integrate resources, enrich the series of heating equipment lower Yangtze River areas will reach RMB 400-500 billion supporting products, capitalize on the our customer base, in the next ten year
Slide 19: VAB - Innovative Products and Services
VAB - Innovative Products and Services Based on precise understanding of customer needs for aesthetics, safety and smart home, adopting LoRa, a remote data collection system, and a variety of intelligent applications, to expand value added business Window-alarm linkage system LoRa IoT Smart Applic
Slide 20: Expanding Operational Footprint
Expanding Operational Footprint Heilongjiang 1 Added 20 new city-gas projects and integrated energy projects, covering 21 provinces, cities and autonomous regions Inner Mongolia 2 Liaoning 1 Total Projects New Projects Hebei City-gas 1. Ruyang Industrial Cluster District, Henan 16 Tianjin 2. Lvsigan
Slide 21: Content
Content 1. Results Review 2. Financial Highlights 3. Development Strategy 4. Appendix
Slide 22: Key Financial Metrics
Key Financial Metrics Gross profit & gross profit margin (RMB mil) SG&A, SG&A to revenue ratio (RMB mil) 7,042 5,598 5,602 2,190 1,818 1,827 17.8% 17.1% 5.8% 15.8% 5.3% 5.1% 1H2019 1H2020 1H2021 1H2019 1H2020 1H2021 EBITDA & EBITDA margin Core profit & core profit margin (RMB mil) 3,685 3,112 6,634
Slide 23: Superior Financial Management
Superior Financial Management CAPEX (RMB mil) Account receivables & turnover days (RMB mil) 3,384 2,695 356 2,306 2,388 2,860 2,872 650 460 344 310 320 14 days 13 days 2,378 2,090 2,208 11 days 1H2019 1H2020 1H2021 1H2019 1H2020 1H2021 Citygas projects IE projects New project acquisition Within 90 d
Slide 24: Cash Flow Analysis
Cash Flow Analysis Steady growth of business and superior financial management, operating cash flow recorded an increase of RMB1,261 mil Free cash flow increased by RMB1,384 mil (RMB mil) +175 4,474 Dividend from JCE & Asso, Finance cost Operating cash Sinopec - 304 flow in 1H21 Marketing & othe
Slide 25: Ample Financial Resources & Liquidity
Ample Financial Resources & Liquidity Debt structure FX risk exposure management (by currency) – long-term USD debt Low interest rate environment, and preferential rates obtained 12% by project companies 52% 1H2021 2020 2019 Change Avg. 46% effective 3.14% 3.63% 3.90% 49 bps 42% interest rate 48%
Slide 26: Content
Content 1. Results Review 2. Financial Highlights 3. Development Strategy 4. Appendix
Slide 27: Opportunities and Needs Driven by Market Changes
Opportunities and Needs Driven by Market Changes Changes in External Environment Opportunities and Needs Changes of Customer Demands Energy System Reform Green and • Green Factory • Green Building • Energy structural adjustment: Manage coal consumption, stimulate gas consumption and development • Gr
Slide 28: Energy-Carbon Integration and Digitalization
Energy-Carbon Integration and Digitalization For developing the “Energy-carbon Integration” solutions for customers and moving forward to the new era, we keep investigating changes of customer demands, business upgrade and digitalization. Customer Industry Building Transportation Industrial Park Res
Slide 29: Enhance the Quality & Quantity of Gas Business Development
Enhance the Quality & Quantity of Gas Business Development Seizing the development opportunities, we executes innovatively, digitally and ecologically to optimize and upgrade our gas business Gas Distribution Business Pipeline Network Operation Digitalize the entire industrial chain Develop the low-
Slide 30: Develop IE Services incorporating Energy & Carbon Management
Develop IE Services incorporating Energy & Carbon Management Diversifying services to meet the low-carbon needs of industry, building, industrial park and city, supporting our customers to realize carbon reduction and facilitating development of IEB Energy + Carbon Carbon-related Low-carbon Developm
Slide 31: Advance VAS Development with Various Measures
Advance VAS Development with Various Measures Providing diversified products to residential customers with product innovation and green product coverage, supporting residential customers to cultivate intelligent and low-carbon lifestyle, creating greater value Low- Pipeline Clean Green Equipment Emb
Slide 32: Q &A
Q &A
Slide 33: ENN – To Build an Industry-leading Integrated Energy Service Provider
ENN – To Build an Industry-leading Integrated Energy Service Provider Company Profile Established in 1993, ENN is one of the leading private-owned clean energy distributor in China. ENN’s principal business includes investment in, and the operation and management of gas pipeline infrastructure,
Slide 34: Application of Low-carbon Energy - Hydrogen
Application of Low-carbon Energy - Hydrogen Hydrogen Supply Project – A Pharmaceutical Government’s front: President Xi pointed out that China Company in Liaoning Huludao would take strong regulations pledged to reach peak level Overview: of carbon emission by 2030, and carbon neutral by 2060 Summ
Slide 35: Typical Industrial Park IE Project - Cash Flow Projection
Typical Industrial Park IE Project - Cash Flow Projection 1. Stable & Recurring Income • Integrated energy solutions reduce customers' overall energy bills 10% • Selling the types of energy customer need increases their stickiness Cash flow break-even 2. Rapid Cash Flow Generation • Capex are inves
Slide 36: Simplified Model for a Typical City-gas Project
Simplified Model for a Typical City-gas Project Revenue/Cost Cash flow break-even Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10 Year11 Revenue Gas Usage Fee Connection Fee CapEx Free Cash Flow Connection fee dominates in early years when the project companies are signing up new custo
Slide 37: Disclaimer
Disclaimer The information provided in this presentation does not constitute or form part of any offer for purchase and subscription, or solicitation of any offer to purchase and subscribe for any securities of ENN Energy Holdings Limited (the "Company") nor shall it form the basis of, nor can it be