Clp Holdings Limited · HKEX:2
Clp — FY2024 Earnings Presentation
60 slides from Clp's earnings presentation, Feb 24, 2025
Slide 1: 2024 Annual Results Presentation
CLP Holdings 2024 Annual Results Presentation 24 February 2025
Slide 2: Disclaimer
Disclaimer CLP Holdings Limited (the “Company”, together with its subsidiaries, the “Group”, or “we”, “our” or “us” as the context requires) is providing this document and making an oral presentation thereon (together, this presentation) for information only. We do not represent or warrant (expressl
Slide 3: Agenda
Agenda Overview TK Chiang, Chief Executive Officer Financial Performance and Outlook Alex Keisser, Chief Financial Officer Strategy and Roadmap TK Chiang, Chief Executive Officer Questions and Answers CLP Headquarters in Kai Tak, Hong Kong. Appendices 3
Slide 4: Overview
Overview CCGT D2 gas-fired generation unit at Black Point Power Station, Hong Kong. 4
Slide 5: 2024 highlights
2024 highlights Strong financial performance and material improvements from EnergyAustralia. Operational delivery on projects, and fleet contributing to supply reliability and energy transition. Delivering growth in decarbonising markets and securing future recurring earnings. Dividend growth of 1.6
Slide 6: 2024 highlights
2024 highlights Financial Highlights Operational Highlights Change Change Operating Earnings Safety & Customers (before Fair Value Movements) HK$10,949 million 8% Total recordable injury rate (2) 0.24 0.06 Unplanned customer minutes lost 6.02 min 0.04 min Total earnings HK$11,742 million 76% in Hong
Slide 7: Financial Performance and Outlook
Financial Performance and Outlook Kwu Tung North Substation, Northern Metropolis, Hong Kong. 7
Slide 8: 2024 financial overview
2024 financial overview Strong financial performance with growth across key financial indicators Operating Earnings (1) EBITDAF (1) before Fair Value Movements Total Earnings HK$25,725 million 9% HK$10,949 million 8% HK$11,742 million 76% Capital Investment (2) Dividend Per Share (DPS) Fourth Interi
Slide 9: EBITDAF by business unit
EBITDAF by business unit Solid growth in EBITDAF with continuous contributions from Hong Kong and improved results from EnergyAustralia HK$M 2,171 (9%) 29,000 1,493 42 197 25,725 261 713 343 24,000 309 23,611 ( 37 ) 3,774 306 ( 237 ) ( 57 ) 2,307 2,856 19,000 3,118 Taiwan Region & Thailand Apraava E
Slide 10: Operating earnings by business unit
Operating earnings by business unit Delivered solid growth in earnings and improved results from EnergyAustralia HK$M 2024 2023 Change Continued reliable performance and capital Hong Kong energy and related activities 8,895 8,823 1% investments in new Development Plan cycle Mainland China 1,851 2,07
Slide 11: Operating Earnings – Hong Kong
Hong Kong Continued reliable performance and capital investments in new Development Plan cycle to support growth 1% 10,000 8,823 389 8,895 8,000 (8) ( 144 ) ( 133 ) ( 32 ) Operating Earnings 6,000 (HK$M) 4,000 2,000 - 2023 FX Return on higher Lower performance Higher Others * 2024 fixed assets incen
Slide 12: Operating Earnings – Mainland China
Mainland China Lower performance mainly due to lower nuclear contribution 2,400 10% 2,073 2,000 16 1,851 ( 10 ) ( 20 ) ( 12 ) Renewables 1,600 ( 196 ) 571 Operating Earnings 1,200 Nuclear 800 (HK$M) 1,671 Thermal 400 Corporate expenses - 5 & others (400) (396) ^ 2023 FX Nuclear Renewables Thermal Ot
Slide 13: Operating Earnings – EnergyAustralia
EnergyAustralia Material improvement led by delivery on generation assets and momentum in flexible capacity additions 6,000 424% EBITDAF 34 4,000 Customer EBITDAF 3,219 Energy EBITDAF 5,164 2,000 7 Enterprise EBITDAF Operating Earnings ( 1,705 ) ( 21 ) 591 (182) 2 ( 403 ) ( 326 ) Interest, tax, - (H
Slide 14: Operating Earnings – Apraava Energy
Apraava Energy Executing profitable growth strategy 11% 400 40 20 329 301 Operating Earnings 300 (5) 36 85 Renewables 200 ( 63 ) 77 Transmission & AMI (HK$M) 120 Thermal 100 63 Group adjustment - (16) Corporate expenses 2023 FX Renewables Transmission & Thermal Group adjustment 2024 (100) AMI & corp
Slide 15: Operating Earnings – Taiwan Region and Thailand
Taiwan Region and Thailand Lower generation at Ho-Ping coal and lower tariff at Lopburi solar 340 12% 307 290 (11 ) 260 Operating Earnings 240 (25 ) (6 ) (5 ) (HK$M) 190 Thermal 140 Solar 261 Corporate expenses 90 40 9 (10) (10) 2023 FX Thermal Solar Corporate expenses* 2024 * Mainly include develop
Slide 16: Cash inflows and outflows
Cash inflows and outflows Strong free cash flow to support growth and dividends HK$ billion 23.5 1.6 21.6 0.6 Cash inflows of HK$21.6b (2023: HK$23.5b) EBITDAF EBITDAF Proceeds from Healthy free cash flow with stable funds from operations supported 23.6 25.7 divestments 21.9 20.9 by underlying EBITD
Slide 17: Financial structure and liquidity
Financial structure and liquidity Sound balance sheet and low risk profile Net Debt Leverage Ratios Liquidity Position Net Debt / Total Capital Undrawn bank facilities Bank balances HK$56.3billion 33.0% (31 Dec 2023: 31.6%) (31 Dec 2023: HK$52.3b) HK$31.0billion HK$5.0billion FFO / Net Debt (31 Dec
Slide 18: Strategy and Roadmap
Strategy and Roadmap Yixing solar located in Jiangsu Province, Mainland China. 18 18
Slide 19: Leading energy utility in Asia Pacific
Leading energy utility in Asia Pacific Present in 5 regions with Uniquely positioned and diversified Strong balance sheet and >22GW of generation across energy value chain dependable dividends distribution ~40 years of MAINLAND CHINA dependable total dividends* INDIA * Ordinary dividends adjusted fo
Slide 20: Strategy
Strategy Opportunities Electrification Energy Transition Strategic pillars for sustained growth Deliver on Climate Vision 2050 Growth in energy transition in Uplift and 59% reduction in GHG emissions Asia Pacific based on enhance intensity by 2030*, out of coal generation, networks, storage capabili
Slide 21: Foundational growth
Foundational growth Committed to our home market Hong Kong Regulated Business Committed investment (2024-2028) Rate of Return Customer & • Support the Hong Kong Government's policy priorities: Climate corp. services 3% Action Plan, new development and housing growth, economic development 8% on and n
Slide 22: Energy transition & decarbonisation in Asia Pacific
Energy transition & decarbonisation in Asia Pacific Pursue investments aligned with our geographic and operational capabilities for dependable earnings growth India Non-Carbon Investments Targeted investment (Apraava Energy level) Minimum Return ~8GW • Continue target to triple non-carbon portfolio
Slide 23: Uplift and enhance capability
Uplift and enhance capability A safe, future-ready workforce Refreshed values, new way of working culture Strategic workforce development Digital and data capability Operational excellence Digital fully embedded into our business Best-in-class assets and operations across energy value chain and dive
Slide 24: Capital allocation and funding strategy
Capital allocation and funding strategy Strong free cash flow generation Solid investment grade rating (S&P A, Moody’s A2) Sustained and committed growth capex in Hong Kong Enabling growth of ordinary dividends in line with underlying earnings Disciplined capital allocation Business models and partn
Slide 25: Question and Answers
Question and Answers Super-fast Charging Station in Zhuhai, Mainland China. 25 25
Slide 26: Appendices
Appendices The waste-to-energy project in West New Territories (WENT) Landfill, namely WE station, in Hong Kong. 26 26
Slide 27: Financial highlights
Financial highlights 2024 2023 Change Revenue (HK$M) 90,964 87,169 +4% Operating Earnings (before Fair Value Movements) (HK$M) 10,949 10,127 +8% Operating Earnings (HK$M) 11,648 12,252 -5% Total Earnings (HK$M) 11,742 6,655 +76% Operating Earnings per share (HK$) 4.61 4.85 -5% Total Earnings per sha
Slide 28: Operating highlights
Operating highlights 2024 2023 Change Safety (Total recordable injury rate) (1) 0.24 0.18 +0.06 Reliability in Hong Kong (minutes lost pa) (2) 6.02 5.98 +0.04 Customer accounts (Thousand) Hong Kong 2,830 2,790 +40 Australia 2,383 2,442 -59 Electricity sent out (TWh) (3) 79.8 79.5 +0.3% Generation an
Slide 29: Items affecting comparability
Items affecting comparability Hong Kong Profit from sale of properties HK$M 2024 2023 Sale of properties relating to Argyle Street. Hong Kong – Profit from sale of properties 56 112 Hong Kong Revaluation loss on investment property Hong Kong – Revaluation loss on investment (67) (25) property Retail
Slide 30: Reconciliation of EBITDAF and Operating Earnings
Reconciliation of EBITDAF and Operating Earnings HK$M 2024 2023 Change Depreciation and amortisation Recurring EBITDAF 25,725 23,611 9% • Hong Kong: Higher depreciation from the commissioning of D2 gas-fired generation unit at Black Point in April 2024 and offshore Less: LNG terminal in July 2023. D
Slide 31: Reconciliation of EBITDAF and Operating Earnings by business units
Reconciliation of EBITDAF and Operating Earnings by business units Hong Kong energy and Taiwan Region and Other earnings & HK$M Mainland China EnergyAustralia Apraava Energy Group total related activities Thailand unallocated items 2024 Annual Recurring EBITDAF 19,447 2,856 3,774 343 261 (956) 25,72
Slide 32: Operating earnings before fair value movements
Operating earnings before fair value movements HK$M 8% 14,000 2,171 12,000 ( 155 ) 32 10,949 ( 496 ) 260 10,127 ( 717 ) 329 10,000 307 591 301 ( 13 ) 2,073 1,851 Taiwan Region & 8,000 Thailand Apraava Energy 6,000 EnergyAustralia Mainland China 4,000 8,823 8,895 Hong Kong Other earnings & 2,000 unal
Slide 33: Cash flow and financial structure
Cash flow and financial structure Free Cash Flow HK$M 2024 2023 Change Consolidated EBITDAF 25,830 18,066 7,764 • Hong Kong: lower cash inflow from SoC operations (-HK$1.7 billion) primarily due to lower fuel Less: Items affecting comparability (105) 5,545 (5,650) cost collected from customers in 20
Slide 34: Dividends
Dividends A history of returning cash to shareholders CLP Ordinary Dividend Per Share* (1987 – 2024) and Shareholding by Category (as at 31 December 2024) HK$ 3.50 33% 35% 3.10 3.10 3.10 3.10 3.15 Retail Interests 3.02 3.08 As at 2.91 3.00 investors associated with 2.80 31 Dec 2024 Kadoorie Family 2
Slide 35: Financial obligations at a glance
Financial obligations at a glance HK$M 31 Dec 2024 31 Dec 2023 HONG KONG Total borrowings of CLPH, CLPP, CAPCO & PSDC 52,259 47,968 Increase in the Group’s net/total Minus: Bank balances and liquid funds (3,673) (2,806) debt to total capital was driven by Net debt – Hong Kong 48,586 45,162 higher ne
Slide 36: Credit ratings
Credit ratings CLP Holdings CLP Power CAPCO EnergyAustralia S&P Moody’s S&P Moody’s S&P Moody’s Moody’s Long-term Rating Foreign Currency A A2 A+ A1 AA- A1 Baa2 The credit ratings and rating outlooks Outlook Stable Stable Stable Stable Stable Stable Stable remained unchanged in 2024. Local Currency
Slide 37: Highlights of financing activities
For more information on Highlights of financing activities CLP Climate Action Finance Framework CLP Holdings: Ample liquidity in the Group as of 31 December 2024 Scheme of Control: Cost effective financing • The Group maintained adequate liquidity with undrawn bank facilities of HK$31.0 January 2025
Slide 38: Loan balances by type and maturity
Loan balances by type and maturity Proportion of Debt on Fixed and Loan Balance (1) – Type Loan Balance (1) – Maturity (2) Floating Rate HK$M HK$M 70,000 70,000 60,000 6% 60,000 4% 20% 50,000 50,000 22% 28% 32% 13% 11% 51% 40,000 40,000 43% Dec 2024 49% 27% 29% 57% 30,000 30,000 58% 20,000 Dec 2023
Slide 39: Hong Kong – Growing business scale
Hong Kong – Growing business scale Generation Transmission Distribution Retail 9,399MW* > 17,100 km of transmission and 250 primary and > 15,700 36,125GWh sold and generation portfolio high voltage distribution lines secondary substations 2.830 million customer accounts During 2024: • Local electric
Slide 40: Hong Kong – Electricity sales, earnings and capex
Hong Kong – Electricity sales, earnings and capex Electricity sales Capital expenditure (Accrual basis) GWh 2024 2023 Change Proportion HK$M 2024 2023 Change Residential 10,204 9,929 2.8% 28% CLP Power 8,010 6,759 18.5% Commercial 13,882 13,673 1.5% 39% CAPCO * 2,808 4,911 42.8% Infrastructure & Pub
Slide 41: Hong Kong – Tariff, reliability, fuel prices and environmental improvement
Hong Kong – Tariff, reliability, fuel prices and environmental improvement Low tariff Residential Tariff % Increase from Jan 2021 to Jan 2025 High reliability (FY2024) Unplanned customer minutes lost per year HK$/kWh London +57% 4.0 30 3.0 Singapore +38% 21 20 2.0 12 13 Sydney +24% 10 1.0 6.0* +19%
Slide 42: Hong Kong – Tariff, Energy Cost, Fuel Mix and Gas Volume
Hong Kong – Tariff, Energy Cost, Fuel Mix and Gas Volume Tariffs Energy Costs HK¢/kWh 160 HK$M 144.3 Average Net Tariff -5% 140 30,000 26,776 25,513 120 316 245 100 98.0 Basic Tariff 80 20,000 8,082 Others 8,316 60 46.3* Fuel Cost Adjustment Non-carbon 40 Gas 20 10,000 13,707 14,344 Special Rebate C
Slide 43: Mainland China – Financials
Mainland China – Financials Operating / Total Earnings HK$M RMB M 2024 2023 2024 2023 Renewables 571 603 528 546 - Wind 312 308 288 279 - Hydro 111 101 103 91 - Solar 148 194 137 176 Nuclear 1,671 1,888 1,543 1,711 - Daya Bay 911 943 841 855 - Yangjiang 760 945 702 856 Thermal 5 (11) 5 (10) - Shando
Slide 44: Mainland China – Market sales in 2024
Mainland China – Market sales in 2024 Province Yunnan Projects with Market Sales (Equity MW) Xundian Wind (99.5MW) Xicun Solar (84MW) Dali Yang_er Hydro (50MW) Inner Mongolia Zhungeer Thermal (257MW) Hebei Sanhe Thermal (219MW) Tianjin Panshan Thermal (207MW) Jiangsu Gongdao Solar (74MW) Liaoning Li
Slide 45: EnergyAustralia – Financials
EnergyAustralia – Financials Operating / Total Earnings HK$M A$M 2024 2023 2024 2023 EBITDAF (before items affecting Previous Current Previous Current Reallocation Reallocation comparability) Reporting Reporting Reporting Reporting (2) (2) Customer (Retail) (1) 34 788 971 1,759 7 152 187 339 Energy
Slide 46: EnergyAustralia – Wholesale Market Conditions
EnergyAustralia – Wholesale Market Conditions Financial Spot Price: Physical Supply and Demand: 3. Spot Market continues resurgence in second half of 2024 1. Continued increase in Operational Demand Following volatile conditions in Q2 2024 and a 7-day price cap in NSW, a brief price Compared to 2023
Slide 47: EnergyAustralia – Outlook
EnergyAustralia – Outlook Calendar Year SWAP Prices Over Time - NSW 300 CAL20 CAL21 CAL22 CAL23 CAL24 CAL25 The Market CAL26 CAL27 CAL28 250 • Australia targeting 82% of renewable SWAP Price A$/MWh 200 energy by 2030. 150 • Wholesale price outlook remains stable. 100 50 0 12/2019 12/2020 12/2021 12/
Slide 48: EnergyAustralia – Price Volatility and Intraday Price Movement
EnergyAustralia – Price Volatility and Intraday Price Movement NSW Average Hourly Prices 600 500 400 Need similar graphs for caps 300 200 100 Market Trends - Higher spot price volatility 0:00 6:00 12:00 18:00 0:00 6:00 12:00 18:00 0:00 6:00 12:00 18:00 0:00 6:00 12:00 18:00 0:00 6:00 12:00 18:00 202
Slide 49: EnergyAustralia – Customer operations
EnergyAustralia – Customer operations Customer account numbers Sales volume & revenue FY 2024 FY 2023 FY 2024 FY 2023 Customer Account Numbers (000s) Sales Volume & Revenue Electricity Electricity Electricity Gas Total Electricity Gas Total Gas (PJ) Gas (PJ) (TWh) (TWh) Mass Market 1,546.4 832.3 2,3
Slide 50: EnergyAustralia – Customer operations
EnergyAustralia – Customer operations Supporting customers experiencing hardship 24 Ombudsman complaints/10k accounts • 59k accounts (Dec 2023: 52k) • Ombudsman Complaints volumes 61% utilising EnergyAssist programme reduction since 2015 • EA % Share of Ombudsman Complaints 23% reduction since 2023
Slide 51: Apraava Energy – Financials
Apraava Energy – Financials Operating / Total Earnings HK$M Rs M 2024 2023 2024 2023 Renewables 85 150 912 1,581 Thermal (Jhajjar) 120 82 1,288 865 Transmission 81 44 869 464 AMI (4) (3) (43) (32) Group adjustment & 47 28 504 295 Corporate expenses (1) Operating earnings 329 301 3,530 3,173 One-off
Slide 52: Taiwan Region and Thailand – Financials
Taiwan Region and Thailand – Financials HK$M Local Currency (M) 2024 2023 2024 2023 Thermal 261 297 NT$1,077 NT$1,178 Renewables 10 17 THB46 THB75 Corporate expenses (1) (10) (5) EBITDAF 261 309 Thermal 261 297 NT$1,077 NT$1,178 Renewables 9 15 THB42 THB68 Corporate expenses (1) (10) (5) Operating e
Slide 53: Decarbonising our operations
Decarbonising our operations CLP’s Past and Projected Greenhouse Gas Emissions Intensity Retired Retiredthree threegeneration generationunits unitsat at Castle Peak Power Station Castle Peak A1, A2 and A3 units were retired in 2024; A4 Castle PeakAAPower executed Power Station and an earlyStation an
Slide 54: CLP Group – Generation and energy storage portfolio – Dec 2024
CLP Group – Generation and energy storage portfolio(i) – 31 Dec 2024 17,893 Equity MW and 4,689 MW Long Term Purchase (total 22,582 MW) HONG KONG total 7,222 MW* ENERGYAUSTRALIA total 5,732 MW* Operational 7,222 MW* Operational 5,694 MW* Castle Peak – A & B (ii) 3,058 / 3,058* (c) Yallourn 1,480 / 1
Slide 55: CLP Group – Renewable generation portfolio – Dec 2024
CLP Group – Renewable generation portfolio(i) – 31 Dec 2024 3,739 Equity MW and 697 MW Long Term Purchase (total 4,436MW) - 19.6% of CLP total generation portfolio HONG KONG total 14 MW* MAINLAND CHINA APRAAVA ENERGY total 987 MW Operational 14 MW Under Construction 740 MW Operational 586 MW Wind 55
Slide 56: CLP Group – Generation and energy storage capacity by fuel mix
CLP Group – Generation and energy storage capacity(i) by fuel mix 22,582 MW Attributable to CLP Group Operational Under construction Capacity by Total MW % MW % MW % Energy Type (a) + (b) (a) (b) Coal 8,140 36% 8,140 36% - - Gas 6,131 27% 6,093 27% 38 <1% Nuclear 2,685 12% 2,685 12% - - Wind 2,625 1
Slide 57: CLP Group – Energy sent out by asset type – 2024
CLP Group – Energy sent out(1) by asset type – 2024 TWh 35 CLP 2024 Generation 31.4 30.7 as Sent Out (1) 30 24.8 25.2 40% 25 41% 25% 25% 2024 20 17.6 16.5 2023 10% 15 10% 24% 25% 2023: 79.5 TWh 10 2024: 79.8 TWh 5.0 4.7 5 1.8 1.6 0 -5 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Hong Kong Mainl
Slide 58: CLP Group – Other metrics by asset type – 2024
CLP Group – Other metrics by asset type – 2024 Revenue Operating earnings # Fixed Assets & Interests 100% in JV/ Associates ^ 90% Generation and Storage Capacity* 80% 5% 70% Coal 12% 5% 11% Dec 2024 Gas 36% 60% Nuclear 42% 50% 16% Renewables 20% 40% Others Dec 2023 30% 26% T&D/Retail 27% 20% 10% 0%
Slide 59: Additional Resources
Additional Resources Scan or click on the QR codes to go to appropriate pages Annual Report Sustainability Report Climate Vision 2050 Introductory Pack 2024* 2024* 2024 Edition February 2025 Interim Results Presentation August 2024 Website: www.clpgroup.com * To be published in early March 2025. 59
Slide 60: Thank you
Thank you！ You can access this presentation and other materials through our website or CLP IR App which can be downloaded onto your mobile device by clicking here or by If you have any questions, scanning this code below. please contact IR team or email ir@clp.com.hk 60