Enn Energy Holdings Limited · HKEX:2688
Enn Energy — H1 2022 Earnings Presentation
35 slides from Enn Energy's earnings presentation, Aug 19, 2022
Slide 1: 2022 Interim Results Presentation
2022 Interim Results Presentation 19 August 2022
Slide 2: 1H Results Highlights
1H Results Highlights Sales volume of IE increased by 34.2% to 10,801 mil kWh, revenue increased by 46.5% year-on-year to RMB5,365 mil Retail gas sales volume increased by 5.1% to 13,065 mil m3 Developed 9.479 mil m3 installed daily capacity for C/I customers and completed the construction and insta
Slide 3: ESG Development
ESG Development Execution of Decarbonisation Action 2030 and emission reduction programs Methane Emission Control Scope 3 Emission Calculation ➢ Participated in MGP’s roundtable and confirmed its strategy to ➢ Sorted out 15 categories of scope 3 emission sources throughout the cover the entire natur
Slide 4: Increase Safety & Operational Resilience in All Aspects
Increase Safety & Operational Resilience in All Aspects Create an Industry Leading Brand in Safety Well-prepared for Safety Inspection Multiple Measures of Gas Leakage Detection ➢ In 1H, 9 project companies were inspected by the national inspection ➢ Laser methane detectors have covered 42% of city-
Slide 5: Digitalized and Intelligent Management System Strengthened Intrinsic Safety
Digitalized and Intelligent Management System Strengthened Intrinsic Safety The Qingdao project took the lead in implementing a digital and intelligent safety management project. It sorted out 5 major gas business scenarios and more than 1,200 required actions, equipped with IoT sensing equipment fo
Slide 6: Content: Results Review
Content 1. Results Review 2. Financial Highlights 3. 2H2022 Outlook 4. Appendix
Slide 7: IE Business
IE Business Dual carbon policy and high energy prices fueled the growth of IE business which facilitates the energy transition of customers and reduces their energy bills 1H Performance Financial Performance IE Sales Vol (mil kWh) Operational Under Revenue As utilization rate increased and the commi
Slide 8: IE Business
IE Business Promoted low-carbon solutions and developed new customers under various service scenarios Low-carbon Industrial Park Low-carbon Factory 14 Newly-signed Industrial Park Projects 456 New Factory Projects were Signed Energy Consumption Potential > 1 bil kWh Energy Consumption Potential of 6
Slide 9: IE Business
IE Business Continued to dig deep into customer needs and increase project returns Case: Anhui Xuancheng Economic Development Zone • Overview: The main industries are new energy and materials, food and medicine production with 71.8km2 area. • Demand: Energy consumption and intensity control, energy
Slide 10: Retail Gas Sales Business
Retail Gas Sales Business Residential gas sales volume has grown steadily, while the gas sales volume of C/I and refuelling stations has slowed down due to the epidemic and economic downturn 1H Performance Financial Performance C/I Vol Residential Vol Vehicle Gas Refueling Vol Retail gas sales volum
Slide 11: Innovated Market-oriented Business Strategies to Unleash the Value of Resources
Innovated Market-oriented Business Strategies to Unleash the Value of Resources Adopted innovative business models which is adaptive to local conditions, flexible sales and pricing strategies to tackle challenges of high gas price, so as to achieve cost pass-through and maximize the value of resourc
Slide 12: Construction & Installation
Construction & Installation Continued to explore new C/I users leveraging the opportunity of coal-fired boiler replacement and pollution control policies for energy-intensive industries; seized the opportunity of welfare housing and old areas re-development to maintain stable residential user develo
Slide 13: Continued to Expand Operation Footprint
Continued to Expand Operation Footprint Added 29 integrated energy and city-gas projects, covering 21 provinces, municipalities and autonomous regions Heilongjiang Total New Projects 2 Projects Integrated 1. Langfang Daxing Airport 15. Linyi Kangdu Porcelain Energy Economic Zone Project Industry Pro
Slide 14: Value Added Business
Value Added Business Capitalized on superior customer services and enriched product portfolio to provide one-stop solutions for customers, to strengthen our positioning as a “Lifestyle Ecosystem Operator” and enhance per customer value 1H Performance Financial Performance Revenue Breakdown Value Cre
Slide 15: Upgraded Value Creation Model with Core Products
Upgraded Value Creation Model with Core Products Centred on customer personalized needs for safety, low-carbon and comfort to create a smart service platform, integrating ecosystem partners to facilitate their improvement of lifestyle Green Smart Safe Home Home Home • Vigorously promote the sales of
Slide 16: Established an Ecosystem for Value Added Products & Services
Established an Ecosystem for Value Added Products & Services Provide diversified services for household customers to satisfy their pursuit of quality lifestyle via persistent upgrade of products and solutions, and energy consumption data collection Green Home Customer Pain Points and Demand Case - X
Slide 17: Content: Financial Highlights
Content 1. Results Review 2. Financial Highlights 3. 2H2022 Outlook 4. Appendix
Slide 18: Resilient Set of Results
Resilient Set of Results （RMB mil） 1H2021 1H2022 Changes Key Financial Data Revenue 41,232 58,332 +41.5% Segment Revenue Retail gas sales 23,138 30,316 +31.0% IE business 3,662 5,365 +46.5% Value added business 837 1,165 +39.2% Wholesale of gas 9,768 18,696 +91.4% Construction& installation 3,827 2,
Slide 19: Robust Financial Performance
Robust Financial Performance SG&A and SG&A Margin Account Receivables & Turnover Days (RMB mil) (RMB mil) 2,476 967 1,275 2,190 2,663 2,363 14 days 5.3% 11 days 4.2% 1H2021 1H2022 FY2021 1H2022 SG&A SG&A to revenue ratio Within 90 days Over 90 days Turnover day Total Debt Net Gearing Ratio & Net Deb
Slide 20: Capex & Cash Flow Analysis
Capex & Cash Flow Analysis Thanks to prudent financial management and the steady growth of core businesses, the Group generated positive free cash flow of RMB689 mil Capex Cash Flow (RMB mil) (RMB mil) 4,226 +49 3,342 210 Dividends from JV, Net finance 2,872 cost 530 Asso and 344 other -244 investme
Slide 21: Ample Financial Resources & Liquidity
Ample Financial Resources & Liquidity Credit ratings by S&P, Moody's and Fitch are BBB+、Baa1、BBB+ respectively Average financing cost in 1H was 3.63%, low financing costs coupled with strong financial resources ensure the sustainable development of the Group's business Successfully issued the Green
Slide 22: Content: 2H2022 Outlook
Content 1. Results Review 2. Financial Highlights 3. 2H2022 Outlook 4. Appendix
Slide 23: Challenges & Opportunities
Challenges & Opportunities • China’s economy has shown signs of recovery, thanks to the fiscal and monetary policies Macro implemented by the Chinese government to boost economy and internal demand. However, it is still at the stage of adjustment, energy demand has just started to recover Economy •
Slide 24: Development Strategy
Development Strategy Expand core businesses based on customer demand, leverage on digitalization to unleash customer value, with safety operation our top priority Industrial Industrial Commercial Household Customer Customer Parks Customer Customer Enhance the quality Strengthen the Expand value of n
Slide 25: Harness Supply and Demand with the Support of Digitalization
Harness Supply and Demand with the Support of Digitalization to Enhance the Quality of Gas Sales Business Enhancing demand-side management, coordination of resources and digitalization of products to improve supply- demand matching Customer Resources • Maximize gas supply from the 3 majors • Provide
Slide 26: Expand Integrated Energy Business
Expand Integrated Energy Business Maximize the value of existing IE projects and develop new projects leveraging on digitalization, diversified IE products and technological know-hows Enhance the value of existing IE projects Expand the scale of new projects • Extension of services • Duplicate & pro
Slide 27: Develop Value Added Business
Develop Value Added Business Focus on the needs of household customers to enhance their quality of life through the provision of smart and low-carbon products and services Smart Home As a smart home butler, provide smart health, Integrate internal and external travel, purchase, ecosystem partners to
Slide 28: Guidance for FY2022
Guidance for FY2022 Guidance IE Business Revenue +50% VAB Gross Profit +30% Retail Gas Sales Volume +5-8% Dollar Margin RMB0.5/m3 New C/I Development 20mil m3/day New Residential Development 2.4mil households New Projects (IE & City-gas) 50 Core Profit +12-15% 27
Slide 29: Content: Appendix
Content 1. Results Review 2. Financial Highlights 3. 2H2022 Outlook 4. Appendix 28
Slide 30: 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 31: ENNENERGY Decarbonisation Action 2030
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Slide 32: 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 33: 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 34: Gas Delivery Process
Gas Delivery Process Vehicle & ship gas users 33
Slide 35: 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