Clp Holdings Limited · HKEX:2
Clp — FY2021 Earnings Presentation
57 slides from Clp's earnings presentation, February 2022
Slide 1: 2021 Annual Results Presentation
CLP Holdings 2021 Annual Results Presentation
Slide 2: Disclaimer
Disclaimer Potential investors, analysts and shareholders of CLP Holdings Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you ma
Slide 3: Agenda
Agenda Overview Richard Lancaster, Chief Executive Officer Financial Performance and Outlook Nicolas Tissot, Chief Financial Officer Strategy and Roadmap Richard Lancaster, Chief Executive Officer Questions and answers Rooftop solar panels at Queen’s Hill substation, Hong Kong Appendices 2
Slide 4: Overview
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Slide 5: Strengthened Climate Vision, robust operations, earnings lower despite strong Hong Kong
Strengthened Climate Vision, robust operations, earnings lower despite strong Hong Kong, dependable dividend Accelerating Robust operations Dividends and solid energy transition Group earnings financial position amid volatile lower. Strong Hong maintained market conditions Kong results partially off
Slide 6: Strengthened Climate Vision, robust operations, earnings lower despite strong Hong Kong
Strengthened Climate Vision, robust operations, earnings lower despite strong Hong Kong, dependable dividend Safety & Customers Operating Earnings & Operating EPS Safety (1) Reliability in Customer Accounts Hong Kong (2) Hong Kong Australia HK$9,517 million 17.8% 0.23 0.99 2.711m 2.443m HK$3.77 per
Slide 7: Financial Performance and Outlook
Financial Performance and Outlook Qian’an III Wind Farm, Jilin, Mainland China 6
Slide 8: Core earnings base solid, volatility weighed on Australia and Mainland China
Core earnings base solid, volatility weighed on Australia and Mainland China, one-off charges Revenue EBITDAF (1) ACOI (1) HK$83,959 million HK$24,499 million HK$15,191 million 5.5% 3.5% 10.1% Operating Earnings (1) Total Earnings Capital Investment (2) HK$9,517 million HK$8,491 million HK$14,198 mi
Slide 9: Operating earnings by region
Operating earnings by region HK$m 2021 2020 Change Operating Earnings Hong Kong electricity and related activities 8,490 8,088 5.0% Solid performance in HK Mainland China 1,660 2,233 25.7% High coal costs EnergyAustralia (83) 1,690 N/A Includes -HK$640m y-on-y change in Apraava Energy 221 175 26.3%
Slide 10: Adjusted Current Operating Income (ACOI) by business unit
Adjusted Current Operating Income (ACOI) by business unit HK strong, Australia significantly lower, India stable, high coal prices impacting Mainland China & Taiwan HK$m 20,000 560 16,899 278 386 13 81 15,191 11.6% 16,000 884 (669) excl. FX 183 2,041 902 (1,746) (225) 465 12,000 2,768 2,200 SEA & Ta
Slide 11: ACOI – Hong Kong
Hong Kong Higher earnings reflecting progress in major projects despite COVID-19 pandemic 16,000 11,834 53 12,374 507 ACOI (HK$m) 12,000 4.7% (20) excl. FX 8,000 4,000 0 2020 FX Return on higher fixed Others 2021 assets Performance Outlook • ACOI up 4. 7%: Reflecting progress in major projects despi
Slide 12: ACOI – Mainland China
Mainland China Strong nuclear results partially offset impact of higher coal prices, renewables stable 4,000 281 3,000 2,7688,000 101 ACOI (HK$m) (99) 5,877 2,200 5,603 8 256 10 2,000 6,000 23.3% (811) (40) 920 excl. FX 4,000 1,000 4.7% Renewables 2,000 2,073 excl. FX Nuclear 0 Thermal 0 (575) 1H202
Slide 13: ACOI – EnergyAustralia
EnergyAustralia Severe impact from higher gas supply costs and lower electricity prices as energy transition accelerates 3,000 533 2,500 170 ACOI (HK$m) 2,041 79.0% 2,000 Customer excl. FX 819 1,500 Enterprise 1,000 Energy (1,799) 1 465 1,445 500 (2,280) 0 2020 FX Customer Energy Enterprise 2021 Per
Slide 14: ACOI – Apraava Energy
Apraava Energy Dependable renewables and transmission partially offset by major maintenance in Jhajjar 1,200 97 884 5 16 902 ACOI (HK$m) 800 1.5% (100) excl. FX 606 Renewables 400 42 Transmission 254 Thermal 0 2020 FX Renewables Thermal Transmission 2021 Performance Outlook • ACOI up 1.5%: Dependabl
Slide 15: ACOI – Southeast Asia and Taiwan
Southeast Asia and Taiwan Ho-Ping earnings reduced on higher coal costs and lower energy tariff with usual one-year time lag 500 22 7 386 400 ACOI (HK$m) 300 200 29 183 55.1% 71 excl. FX 100 (261) Renewables 126 0 Thermal (14) Others (100) 2020 FX Renewables Thermal Others 2021 Performance Outlook •
Slide 16: Free Cash Flow lower while capital investment increased
Free Cash Flow lower while capital investment increased driven by decarbonisation projects. Dividends paid stable Cash Inflows and Outflows (HK$ billion) 25 20.6 20.5 20 0.2 1.3 2.3 3.4 17.4 17.5 1.7 0.2 0.4 1.0 15 10.3 8.7 10 20.4 17.1 5 7.8 7.8 0 Cash Inflows Change in FCF Proceed from Cash Inflow
Slide 17: Maintained strong ratings, liquidity and headroom
Maintained strong ratings, liquidity and headroom Net Debt Net Debt/Total Capital Credit Ratings S&P Moody’s HK$50.0 billion 28.1% A A2 CLP Holdings Stable Stable Debt Maturity Debt Composition A+ A1 Within 1 CLP Power HK year Floating Stable Stable 18% rate 39% 1-2 AA- A1 years 11% CAPCO 54% 61% St
Slide 18: Long standing practice of dependable dividends continued in 2021
Long standing practice of dependable dividends continued in 2021, with total dividends maintained at HK$3.10 per share CLP Dividend 1990 – 2021 and Shareholding by Category HK$ 3.5 Interests 3.08 3.10 3.10 Institutional associated 2.91 3.02 2.80 3.0 Investors 2.70 with Kadoorie 2.62 33% 35% Family 2
Slide 19: Strategy and Roadmap
Strategy and Roadmap Smart Energy Centre, Hong Kong 18
Slide 20: Strategy and roadmap
Strategy and roadmap Our Climate Vision Clear path to Focus on growth Deliver customer 2050 – transition to growth and in Hong Kong centric Utility of net zero decarbonisation and Greater Bay the Future with across our Area leveraging innovation, portfolio regional technology and capabilities agile
Slide 21: Our new strengthened Climate Vision 2050
Our new strengthened Climate Vision 2050 Key Climate Vision 2050 commitments • Achieve net-zero greenhouse gas emissions by 2050 • Phase out of all coal-fired assets by 2040, a decade earlier than previously pledged • New 2030 emissions target aligned with the SBTi’s well-below 2⁰C pathway, and stre
Slide 22: Our decarbonisation solutions
Our decarbonisation solutions EV infrastructure Data Centres Rooftop Solar HK’s Climate Action Plan Tallawarra Gas/Hydrogen CLP’s portfolio of solutions to help customers decarbonise Enabling Using electricity more Improving Helping offset Working with low-carbon widely for transport energy emission
Slide 23: Focus on growth in Hong Kong and Greater Bay Area
Focus on growth in Hong Kong and Greater Bay Area leveraging regional capabilities Foundations for growth Partnerships and Growth focus areas and entry into new investments opportunities Integrated Energy Service Provider Energy Electricity Supply Renewables Infrastructure Wind Data Centres Solar
Slide 24: Realising our Utility of the Future vision
Realising our Utility of the Future vision Creating value for all stakeholders with customer centric solutions leveraging innovation, technology & agile workforce Customer centric Technology & solutions digitally driven investing in innovation Town Island microgrid Smarter grids and Empowered & agil
Slide 25: Questions and Answers
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Slide 26: Appendices
Appendices Smart Energy Connect 25
Slide 27: CLP Group – Financial Highlights
CLP Group – Financial Highlights 2021 2020 Change Revenue (HK$M) 83,959 79,590 +5.5% Operating earnings (HK$M) 9,517 11,577 -17.8% Total earnings (HK$M) 8,491 11,456 -25.9% Operating earnings per share (HK$) 3.77 4.58 -17.8% Total earnings per share (HK$) 3.36 4.53 -25.9% Dividends per share (HK$) F
Slide 28: Items Affecting Comparability
Items Affecting Comparability EnergyAustralia Litigation Settlement HK$M 2021 2020 • Litigation Settlement. For further details see page 33 of the Hong Kong Stock Exchange Announcement “CLP EnergyAustralia – Litigation Settlement (777) - Holdings Limited 2021 Annual Results Announcement” which can b
Slide 29: CLP Group – Operating Highlights
CLP Group – Operating Highlights 2021 2020 Change Safety (Total Recordable Injury Rate) 0.23 0.32 -0.09 Reliability in Hong Kong (minutes lost pa) (1) 0.99 0.92 +0.07 Customer Accounts (Thousand) Hong Kong 2,711 2,672 +39 Australia 2,443 2,449 -7 Electricity Sent Out (TWh) (2) 91.2 85.9 +6.1% Genera
Slide 30: Reconciliation of Operating Earnings to ACOI
Reconciliation of Operating Earnings to ACOI Adjusted Current Operating Income or ACOI • ACOI equals EBIT excluding items affecting comparability and HK$m 2021 2020 Change fair value adjustments, and includes the Group’s share in net Operating Earnings earnings from joint ventures and associates 9,5
Slide 31: CLP Group – Reconciliation of Operating Earnings and ACOI
CLP Group – Reconciliation of Operating Earnings and ACOI Hong Kong electricity Other earnings & HK$M Mainland China EnergyAustralia Apraava Energy SEA & Taiwan Group total and related unallocated items 2021 Annual Operating Earnings 8,123 1,961 (83) 221 173 (878) 9,517 (as per Segment Information i
Slide 32: CLP Group – Cash Flow and Financial Structure
HK$M 2021 2020 CLP Group – Cash Flow Cash Flow EBITDAF 22,880 25,254 and Financial Structure Less: Items affecting comparability 1,619 121 Recurring EBITDAF 24,499 25,375 Cash Flow Less: Share of results of joint ventures & (1,974) (2,522) • Lower free cash flow mainly reflected lower operating earn
Slide 33: CLP Group – Financial Obligations at a Glance
CLP Group – Financial Obligations at a Glance HK$M 31 Dec 2021 31 Dec 2020 Increase in the Group’s net HONG KONG debt to total capital was Total borrowings of CLPP, CAPCO & PSDC 46,534 43,449 mainly due to higher net debt Minus: Bank balances and liquid funds (6,431) (6,598) to finance capital expen
Slide 34: CLP Group – Credit Ratings
CLP Group – Credit Ratings CLP Holdings CLP Power CAPCO EnergyAustralia S&P Moody’s S&P Moody’s S&P Moody’s S&P In May and June 2021, S&P and Long-term Rating Moody’s affirmed the credit ratings of CLP Holdings, CLP Power Hong Foreign Currency A A2 A+ A1 AA- A1 BBB+ Kong and CAPCO with stable Outloo
Slide 35: CLP Group – Highlights of Financing Activities
For more information on CLP Group – Highlights of Financing Activities CLP Climate Action Finance Framework CLP Holdings: Ample liquidity in the Group at 31 December 2021 Scheme of Control: Cost effective financing arrangements • Undrawn facilities HK$28.1 billion, bank balances HK$8.3 billion. • CL
Slide 36: CLP Group – Loan Balances by Type and Maturity
CLP Group – Loan Balances by Type and Maturity Loan Balance - Type Loan Balance – Maturity (1) Proportion of Debt on Fixed HK$M HK$M and Floating Rate 60,000 2% 60,000 2% 25% 18% 50,000 50,000 16% 24% 11% 11% 40,000 40,000 17% 39% 23% 37% 30,000 30,000 Dec 2021 66% 61% 20,000 68% 20,000 63% 54% Dec
Slide 37: Hong Kong – Growing Business Scale
Hong Kong – Growing Business Scale Generation Transmission Distribution Retail 10,420 MW > 16,300 km of transmission and 237 primary and > 15,200 35,355 GWh sold and generation portfolio high voltage distribution lines secondary substations 2.71 million customer accounts During 2021: • Local electri
Slide 38: Hong Kong – Electricity Sales, Earnings and Capex
Hong Kong – Electricity Sales, Earnings and Capex Electricity Sales Capital Expenditure (Accrual basis) GWh 2021 2020 Change Proportion HK$M 2021 2020 Change Residential 10,525 10,298 2.2% 30% CLP Power Hong Kong 4,869 4,528 7.5% Commercial 13,423 12,878 4.2% 38% CAPCO * 6,353 4,354 45.9% Infrastruc
Slide 39: Hong Kong – Tariff, Reliability and Environmental Improvement
Hong Kong – Tariff, Reliability and Environmental Improvement Low Tariff High Reliability HK$/kWh Unplanned customer minutes lost per year 3.5 30 29 3.0 2.5 20 2.0 14 14 1.5 10 1.0 1.0 1.6 0.5 0 CLP Power Singapore London Sydney New York 0.0 (CBD) CLP Power Singapore Sydney London New York Remarks:
Slide 40: Hong Kong – Tariff, Energy Cost, Fuel Mix and Gas Volume
Hong Kong – Tariff, Energy Cost, Fuel Mix and Gas Volume Tariffs Energy Cost HK¢/kWh 140 HK$M 128.9 Average Net Tariff 120 25,000 +10% 21,345 19,372 100 93.7 Basic Tariff 20,000 647 80 356 6,838 Others 60 15,000 6,714 Nuclear 40 38.6* Fuel Cost Adjustment 10,000 Gas 20 11,374 Coal Special Rebate 11,
Slide 41: Mainland China – Financials (HK$)
Mainland China – Financials (HK$) HK$m Operating/Total Earnings ACOI 2021 2020 2021 2020 Renewables 545 565 920 951 - Wind 305 306 457 457 - Hydro 45 88 129 194 - Solar 195 171 334 300 Nuclear 1,908 1,594 2,073 1,725 - Daya Bay 963 933 1,014 982 - Yangjiang 945 661 1,059 743 Thermal (572) 203 (575)
Slide 42: Mainland China – Financials (Local Currency)
Mainland China – Financials (Local Currency) RMB’m Operating/Total Earnings ACOI 2021 2020 2021 2020 Renewables 452 503 763 846 - Wind 253 272 379 407 - Hydro 37 79 107 172 - Solar 162 152 277 267 Nuclear 1,583 1,418 1,719 1,535 - Daya Bay 799 830 841 874 - Yangjiang 784 588 878 661 Thermal (475) 18
Slide 43: Mainland China – Earnings, Performance and Opportunities
Mainland China – Earnings, Performance and Opportunities Earnings and performance Business development opportunities • Higher earnings from Nuclear was mainly due to strong • CLP’s first grid-parity windfarm in China, Qian’an III Wind generation of Yangjiang (100 equity MW with 5MW battery storage s
Slide 44: Mainland China – Market Sales in 2021
Mainland China – Market Sales in 2021 Province Projects with Market Sales (Equity MW) Guangxi FCG Thermal (1,806MW) Yunnan Xundian Wind (50MW) Xicun Solar (84MW) Dali Yang_er Hydro (50MW) JILIN Inner Mongolia Zhungeer Thermal (257MW) LIAONING Sichuan Jiangbian Hydro (330MW) GANSU INNER Gansu Jinchan
Slide 45: EnergyAustralia – Financials
EnergyAustralia – Financials HK$m Local Currency 2021 2020 2021 2020 HK$M HK$M A$M A$M EBITDAF (before items affecting 2,792 4,041 486 745 comparability) Depreciation & Amortisation (2,327) (2,000) (399) (372) ACOI Customer (Retail) 819 264 140 49 Energy (Wholesale) 1,445 3,440 256 633 Enterprise (C
Slide 46: EnergyAustralia – Customer Operations
EnergyAustralia – Customer Operations Customer Account Numbers Sales Volume & Revenue 2021 2020 2021 2020 Customer Account Numbers (000s) Sales Volume & Revenue Electricity Electricity Electricity Gas Total Electricity Gas Total Gas (PJ) Gas (PJ) (TWh) (TWh) Mass Market 1,587.4 848.1 2,435.5 1,594.1
Slide 47: EnergyAustralia – Customer Operations
EnergyAustralia – Customer Operations Supporting customers experiencing 61% of bills issued in FY2021 were hardship – E-bills 23.7k customers utilising EnergyAssist • Compared with 5% in 2015 programme • Improving 6pts since 2020 17 Ombudsman complaints/10k accounts 26.3pts improvement in • 72% redu
Slide 48: EnergyAustralia – Wholesale Market Conditions
EnergyAustralia – Wholesale Market Conditions Year Ahead Swap Prices (1) • Forward prices remain below the sustained high prices of the 2017 to 2020 period, reflecting the impact of new renewables that 120 outweigh the planned closure of the Liddell coal power station. 100 NSW VIC • Focus remains on
Slide 49: Apraava Energy – Financials
Apraava Energy – Financials HK$m Local Currency (Rs M) 2021 2020 2021 2020 Renewables 606 506 5,756 4,831 Thermal (Jhajjar) 406 496 3,856 4,736 Thermal (Paguthan & Corporate) (152) (144) (1,444) (1,375) Transmission 42 26 399 248 ACOI 902 884 8,567 8,440 Renewables 186 104 1,767 993 Thermal (Jhajjar
Slide 50: Apraava Energy – Performance and Projects
Apraava Energy – Performance and Projects Performance and recent acquisition Expanding our renewable generation portfolio • A second wave of COVID-19 infections took a heavy toll on • Construction of the Sidhpur wind project in Gujarat continued India in the second and third quarters of the year, to
Slide 51: Southeast Asia & Taiwan – Financials
Southeast Asia & Taiwan – Financials HK$ Local Currency 2021 2020 2021 2020 HK$M HK$M M M Thermal 126 366 NT$452 NT$1,388 Renewables 71 63 THB290 THB254 Others (14) (43) ACOI (1) 183 386 Thermal 126 366 NT$452 NT$1,388 Renewables 61 63 THB251 THB254 Others (14) (43) Operating earnings (1) 173 386 It
Slide 52: CLP Group – Generation and Energy Storage Portfolio – 31 Dec 2021
CLP Group – Generation and Energy Storage Portfolio(i) – 31 Dec 2021 20,018 Equity MW and 5,090MW Long Term Purchase (total 25,108MW) ENERGYAUSTRALIA total 5,470MW* HONG KONG total 8,243MW* Operational Operational Yallourn 1,480 / 1,480 (c) Castle Peak A&B 4,108 / 4,108* (c) Mount Piper 1,430 / 1,43
Slide 53: CLP Group – Renewable Generation Portfolio – 31 Dec 2021
CLP Group – Renewable Generation Portfolio(i) – 31 Dec 2021 2,743 Equity MW and 881 MW Long Term Purchase (total 3,624MW) - 14% of CLP total generation portfolio MAINLAND CHINA 1,828 MW ENERGYAUSTRALIA 910 MW* APRAAVA ENERGY 855 MW Operational Operational Operational Wind 910 MW Wind 616 MW Wind 555
Slide 54: CLP Group – Generation and Energy Storage Capacity by Fuel Mix
CLP Group – Generation and Energy Storage Capacity(1) by Fuel Mix 25,108 MW Attributable to CLP Group Operational Under construction Capacity by Total MW % MW % MW % Energy Type (a) + (b) (a) (b) Coal 12,027 48% 12,027 48% - - Gas 5,813 23% 5,213 21% 600 2% Nuclear 2,685 11% 2,685 11% - - Wind 2,331
Slide 55: CLP Group – Energy Sent Out – 2021
Energy Sent Out(1) CLP TWh Group – Energy Sent Out – 2021 40 CLP 2021 Annual Generation 36.6 as Sent Out(1) 35 34.1 30 29.1 28.0 23% 48% 23% 48% 25 2021 2% 20 18.3 18.1 2% 2% 2020 2% 5% 5% 20% 15 20% 2020: 85.9 TWh 2021: 91.2 TWh 10 5.7 5 3.8 1.8 1.7 0 -5 2020 2021 2020 2021 2020 2021 2020 2021 20
Slide 56: Additional Resources
Additional Resources Scan or click on the QR codes to go to appropriate pages Annual Report Sustainability Climate-related Introductory Interim Results 2021 Report Disclosures Pack Presentation 2021 Report 2021 February 2022 August 2021 55
Slide 57: Thank you
Thank you If you have any questions, please contact You can access this presentation and other IR team or email ir@clp.com.hk materials through our website or CLP IR App which can be downloaded onto your mobile device by clicking here or by scanning this code below. 56