Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — Jinjiang Environment — FY2018 Earnings Presentation
35 slides from Zheneng Jinjiang Environment's earnings presentation, March 2019
Slide 1: FY2018 Results Presentation
FY2018 Results Presentation March 2019 1
Slide 2: Important Notice
Important Notice This document has been prepared by China Jinjiang Environment Holding Company Limited ( "Jinjiang Environment" or the "Company"), solely as presentation materials to be used by the Company’s management. It may contain projections and forward-looking statements that reflect the Compa
Slide 3: Contents
Contents 1. Company Overview 2. Operational Highlights 3. Financial Highlights 4. Growth Strategy 3
Slide 4: Company Overview
Company Overview 4
Slide 5: About Jinjiang Environment
About Jinjiang Environment Jinjiang Environment First mover and leader as well as the first private operator in the Waste-To-Energy (WTE) industry in the PRC Established PRC’s first WTE plant using Circulating Fluidised Bed (CFB) incineration technology in 1998 and built a track record spanning
Slide 6: Business Overview
Business Overview WTE BUSINESS EMC BUSINESS Description • Treatment of municipal solid waste and generation • Provision of EMC services to of steam and electricity with the following revenue Metallurgical, chemical and power streams: generation companies since 2014 • Waste treatment (contracted with
Slide 7: Important Milestones
Important Milestones Established in 1998, Jinjiang Environment is the first private and a leading Waste-To-Energy (WTE) operator (by treatment capacity) in the PRC. 1999 PRC government approved construction 2004 The IFC, a 2012 of the new WTE facility member of the Completed the expansion of Jilin
Slide 8: Strong Shareholding Structure
Strong Shareholding Structure Strong shareholder background provides firm support for company’s development(1) 63.29% Directors Mr Dou Zhenggang Hangzhou Jinjiang 0.32% Whitel Management Ms Jennifer Wei Group(2) & affiliate 49.99% 50.01% *Harvest China Green Environmental AEP Investments Other insti
Slide 9: Operational Highlights
Operational Highlights 9
Slide 10: Operational Analysis
Operational Analysis As at 31 December 2018 Electricity Generated (‘000 KWh) On-Grid Electricity Supplied (‘000 KWh) 2,433,599 1,746,567 8.4% 2,228,166 10.5% 1,562,441 FY 2017 FY 2018 FY 2017 FY 2018 Steam Supplied (‘000 tonnes) Waste Treated (‘000 tonnes) 21.3% 2,916 8,395 1.7% 8,253 2,404 FY 2017
Slide 11: Extensive Portfolio in the PRC with Growing Overseas Footprint
Extensive Portfolio in the PRC with Growing Overseas Footprint Jinjiang Environment Total Capacity 67,256 tons/day China Projects India Projects No. of Project Capacity No. of Projects Project Category Capacity projects Category 2 Preparatory 2,106 tons/day 24 Operational 29,240 tons/day 1 Construct
Slide 12: Our Extensive Footprint in China
Our Extensive Footprint in China Installed Capacity (ton/day) In Operation Under Preparation Under Construction or Expansion Ceased per government policies Waste recycling projects Heilongjiang Inner Mongolia Suihua Green Energy BOO, 800 Jilin Hohhot New Energy BOO, 1,000 Qitaihe Green Energy BOO, 1
Slide 13: Upgrading and Expansion of WTE Facilities
Upgrading and Expansion of WTE Facilities Large-scale technical upgrading project involving some of CJE’s presently operating WTE facilities when completed will significantly expand WTE capacity, increase operational efficiency, reduce emission levels and proportion of coal used As at 31 December 20
Slide 14: Added Recent Business Updates Linzhou WTE Facility
Added Recent Business Updates Linzhou WTE Facility October 2018 Opening ceremony held on October 28 Key project of Henan Province, Anyang City and Linzhou Planning Venous Industrial Park WTE Capacity: 1,000 tons/day (First phase 500 tons/day) Waste Treatment Fee: RMB55/ton Henan Model: BOT Imple
Slide 15: Added Recent Business Updates Leting WTE Facility
Added Recent Business Updates Leting WTE Facility November 2018 Leting municipal solid waste comprehensive treatment WTE PPP facility Concession period of 30 years WTE Capacity: 450 tons/day (municipal waste) + 100 tons/day (solid waste) + 60 tons/day (sewage) Hebei Waste treatment fee (municipa
Slide 16: Added Recent Business Updates Wenling Organic Waste Project
Added Recent Business Updates Wenling Organic Waste Project 4Q2018 Construction of the Wenling Organic Waste Project started, signalling a start for the development of the ecological vein industrial park model A smart comprehensive waste disposal project designed with the latest best-in-class te
Slide 17: Building a presence in India
Building a presence in India Gurgaon project (In Construction) Lucknow integrated waste management project Gurgaon integrated waste management project Location Lucknow City, the capital city of Uttar Location Gurgaon, Haryana Pradesh Area 27.83 acres Area 104 acres Capacity 1,165 tons/day Capacity 1
Slide 18: Foray into Latin America
Foray into Latin America Brazil is one of the “BRIC Five Countries” with an annual waste output that reaches as high as 83 million tons High market potential for waste treatment Rising waste production levels and collection rates Current waste disposal method is landfill; no waste incineration
Slide 19: Latest Debut in Indonesia
Latest Debut in Indonesia Palembang WTE Project Acquired June 2018 Method Acquired 95.0% stake in Indonesian Green Energy Co., Ltd. Investment 120,000,000 USD Capacity 1,000 tons/day Business BOO (30 years concession period from start of operation) Model Waste US$22/ton Subsidies Palembang On-grid A
Slide 20: Latest Debut in Singapore
Latest Debut in Singapore Singapore MBT Project Contract Contracted to provide EPC services and management of operations and maintenance to Singapore’s 1st MBT plant (5th in Asia) Owner of plant MBT plant is owned by JE Synergy Pte Ltd (Joint Venture between Jinjiang Group and Eastern Green Power Pr
Slide 21: Strong Management Team
Strong Management Team Key management team members have more than 20 years of industry experience > 20 years industry experience Executive President, China Environment Service Industry Association Vice President, China Association of Circular Economy President, Zhejiang Provincial Renewable
Slide 22: Financial Highlights
Financial Highlights Qitaihe Green Energy WTE Facility黑龙江七台河 22
Slide 23: Achieving Strong Revenue Growth
Achieving Strong Revenue Growth Revenue Breakdown WTE business is the main revenue contributor As at 31 December 2018 (RMB million) WTE Increase in all business EMC segments with BOT CAGR: 18.9% 3,031 Construction 2,632 2,715 and EMC 578 391 segments 283 driving the 1,936 increase 273 1,277 1,270 15
Slide 24: Achieving Strong Revenue Growth
Achieving Strong Revenue Growth Segment Revenue (RMB million) CAGR: 13.4% CAGR: 144.7% 1,768 1,808 CAGR: 40.8% 1,621 1,341 578 1,094 728 645 556 391 18 325 273 283 147 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 WTE BOT Construction EMC As at 31 Dec As at 31 Dec As at
Slide 25: Stable Profitability
Stable Profitability For the financial year ended 31 December Gross Profit & Gross Profit EBITDA* & EBITDA Net Attributable Profit & Margin Margin Profit Margin （RMB million) （RMB million) （RMB million) 1412 58.5 49.6 51.2 1,049 1,035 52.01,306 46.6 1043 1,389 40.7 44.8 38.1 1,008 788 39.9 28.5 598
Slide 26: Healthy Capital Structure
Healthy Capital Structure Total Assets & Net Assets （RMB million） Total Assets Net Assets 14,594 12,744 9,730 6,572 7,764 5,840 4,591 4,891 5,579 2,842 3,098 3,495 31 Dec 2013 31 Dec 2014 31 Dec 2015 31 Dec 2016 31 Dec 2017 31 Dec 2018 Interest-bearing Debt/Total Assets EBITDA/Interest Net Debt/EBIT
Slide 27: Healthy Operating Cash Flow
Healthy Operating Cash Flow （RMB million） Operating cash flow yield of Operating Cash Flow 24.1% as at 31 Dec 2018 Cashflow adjusted for BOT For the financial year ended 31 December Cashflow Yield ¹ 38.8% 34.8% 30.3% 1,230 24.1% 1,101 17.0% 958 809 638 617 502 537 523 143 2014 2015 2016 2017 2018 1
Slide 28: Growth Strategy
Growth Strategy Zibo New Energy WTE Facility淄博绿能新能源 28
Slide 29: In the future, we will …
In the future, we will … 2. Continuously improve technical 1. Maintain leading market position capabilities • Expanding waste treatment • Adopting advanced pre-treatment capacity of existing facilities technologies from Europe, in synergy • Through organic and inorganic with our own growth opportuni
Slide 30: 1. Maintain Leading Market Position
1. Maintain Leading Market Position 3 main strategy pillars for capacity expansion and growth Increase the capacity of waste Enter under- Acquire underperforming facility treatment in penetrated with growth potential existing facilities, regions and • Management restructuring and pursue organic intr
Slide 31: 2. Continuously Improve Technical Capabilities
2. Continuously Improve Technical Capabilities Introduce advanced pre-treatment technology from Europe, coupled with our own R&D In January 2018, the company established a wholly-owned subsidiary, Waste Tec GmbH, in Solms, Germany, to combine waste drying and sorting technology with CFB technolo
Slide 32: 3. Diversifying in the WTE Value Chain
3. Diversifying in the WTE Value Chain WTE Expand the scope of WTE business to the relevant areas Further develop EMC and third-party project management business Potential diversification areas for WTE 1. Turning waste into resources 2. Sludge Treatment 3. Animal Carcass 3. Kitchen Waste Treatme
Slide 33: 3. Develop EMC
3. Develop EMC EMC As of 31 December 2018 EMC complements the WTE business and can bring： 34 EMC projects have been implemented Business and operational synergies Enhance management experience 28 have achieved energy and expertise in the energy industry savings 6 projects are under EMC
Slide 34: 4. Expand Internationally
4. Expand Internationally Seeking project opportunities from the ‘Belt and Road Initiative’ Improve brand image and international reputation to be a world-class WTE management company Riding on the “Belt and Road Initiative”, to strive to internationalise its WTE business and establish demonst
Slide 35: Thank You
Thank You 35