Towngas Smart Energy Company Limited · HKEX:1083

Towngas Smart Energy — Towngas China Company — H1 2016 Earnings Presentation

18 slides from Towngas Smart Energy's earnings presentation, Aug 22, 2016

  1. Slide 1: Towngas China (1083.hk) 2016 Interim Results Presentation

    Towngas China (1083.hk) 2016 Interim Results Presentation

  2. Slide 2: Corporate Structure

    Corporate Structure Towngas China as a major city-gas platform in China for Hong Kong & China Gas • Major utilities and energy Hong Kong & China Gas company in Hong Kong and (0003.hk) mainland China • A HSI constituent stock 63.71%* • Major city-gas operator in Towngas China mainland China (1083.hk)

  3. Slide 3: Territorial Coverage

    Territorial Coverage As of Jun 30, 2016 Heilongjiang 1 project added, total 103 projects Jilin in 18 provincial regions Liaoning TCCL Hebei New Projects Stake Investment Inner Mongolia Beijing 1 Shanxi Sichuan Distributed Energy System 25% Rmb129Mn Shandong Shaanxi Henan Jiangsu Anhui Profile Hubei

  4. Slide 4: Number of Projects

    Number of Projects 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16YTD 25 37 40 47 61 66 74 87 97 102 103 120 Injection from HKCG 1 100 Newly Acquired 6 10 Existing 80 14 8 5 60 6 8 96 102 40 3 7 87 10 66 73 2 61 20 40 47 37 25 25 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 4

  5. Slide 5: Financial and Operational Performance

    Financial and Operational Performance 5

  6. Slide 6: 1H2016 Results Highlights

    1H2016 Results Highlights Profit From Project Companies 6% 11%* Gas Sales New Total Projects Total Customers Volume Connections 6 months 6 months 5% +1 +383,900 435,261 * In Original Currency 6

  7. Slide 7: Results Highlights (Financial)

    Results Highlights (Financial) 1H2015 1H2016 Change Turnover (Rmb Mn) Gas Sales 2,576 2,268 -12% Connection Fees 577 626 +9% 3,153 2,894 -8% Profit from project companies (Rmb Mn) 612 678 +11% Average Exchange Rate (Rmb/HKD) 1.2467 1.1874 -4.8% Profit from project companies (HKD Mn) 763 805 +6% Prof

  8. Slide 8: Results Highlights (Financial)

    Results Highlights (Financial) Improvement in Segment Margin (HK$Mn) 1H2015 1H2016 Piped-gas & related products 8.3% 10.4% Gas connection 45.4% 46.7% Non-recurring & Special Items (HK$Mn) 1H2015 1H2016 Exchange (Loss)/Gain 11.2 (79.2) Gross Financial Costs (88.6) (118.4) Note: ► All the non-RMB borr

  9. Slide 9: Healthy Balance Sheet

    Healthy Balance Sheet (HK$Mn) Y.E.2015 1H2016 Change Total Assets 28,871 29,292 +1.5% Total Liabilities 14,171 14,633 +3.3% Total Equity 14,700 14,659 Stable Gearing Ratio* 28.6% 28.6% Stable Note: * Definition of Gearing Ratio: Net Debt excluding HKCG loans (“ND”) to equity attributable to sharehol

  10. Slide 10: Growing Gas Sales Volume

    Growing Gas Sales Volume (Bn m³) 1H15 1H16 Change Industrial 1.85 1.83 -1% Commercial 0.66 0.58 +14% Residential 0.96 1.06 +10% Total 3.39 3.55 +5% 7 6.5 6.6 5.9 6 5.3 Gas Sales Volume (Bn m³) 5 4.7 4.0 4 3.6 3.4 3.2 3 2.7 2.1 2 1 0 2007 2008 2009 2010 2011 2012 2013 2014 FY15 1H15 1H16 10 *All JVs

  11. Slide 11: Gas Sales Volume of JVs

    Gas Sales Volume of JVs Volume (Mn m3) 1H15 1H16 Change Subsidiaries 899 924 +3% JCEs & Associates 1,790 1883 +5% Chengdu JV 704 744 +6% Total 3,393 3,551 +5% Note: Chengdu JV with 13% shareholding is classified as financial investment according to accounting standard 11

  12. Slide 12: Operational Highlights

    Operational Highlights Gas Sales Volume Mix (%) Productivity Customers No. (LHS) Residential Commercial Industrial Gas Volume/Employee (RHS) (Mn) (‘000 m³) 13 340 312 310 30% 28% 11 280 52% 9 55% 7 220 17% 18% 9.6 10.4 5 160 1H15 3 1H16 1 100 1H15 1H16 * All JVs (100%) 12

  13. Slide 13: Natural Gas Price Reform

    Natural Gas Price Reform ► A cut of RMB0.7/m³ to the non-residential gate price  Effective 20 November 2015  Price competitiveness of natural gas restored  Regain momentum for piped city-gas volume growth  Boost to CNG/LNG refilling ► Residential tiered price system majority implemented 13

  14. Slide 14: Market Development

    Market Development Commercial & Industrial Industrial Customers Coal-to-Gas Conversion 1H15 1H16 JVs with supporting - 69 government policy Converted Customer 169 310 Capacity 996 2,613 (Steam tons) NG Demand 130 340 (Mn m³/p.a.) Commercial Customers 1H15 1H16 Newly Acquired 3,141 3,256 Customer NG

  15. Slide 15: Our Business: Expanding Coverage

    Our Business: Expanding Coverage 4-6 new projects / year Heilongjiang o Target: Jilin Liaoning o Penetration into neighboring cities Hebei Inner Mongolia Beijing Qinghai Shanxi o Focusing in new territories : Shandong Jiangsu Shaanxi Henan Anhui Fujian Sichuan Chongqing Hubei Zhejiang Jiangsu Hunan

  16. Slide 16: Outlook

    Outlook ► Gas sales volume with mid growth in the medium term ► Development focus Potential:  Boilers & kilns conversion in industrial application  1Bn m³ in 3 years  Restaurants  2.5Bn m³ in 5 years  Gas refilling stations  Residential clothes drying, water heating and space heating ► Environ

  17. Slide 17: Thank You

    38 Mm AIRC Towngas China Company Limited 17

  18. Slide 18: Disclaimer

    Disclaimer This presentation and subsequent discussion may contain certain forward-looking statements. These forward-looking statements reflect the company’s view on some future events and involve known and unknown risks and uncertainties and other factors which may cause actual performance and deve

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