Towngas Smart Energy Company Limited · HKEX:1083

Towngas Smart Energy — Towngas China Company — FY2015 Earnings Presentation

16 slides from Towngas Smart Energy's earnings presentation, March 2016

  1. Slide 1: Towngas China 2015 Annual Results Presentation

    Towngas China (1083.hk) 2015 Annual Results Presentation

  2. Slide 2: 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

  3. Slide 3: Corporate Structure

    Corporate Structure • Major utilities and energy Hong Kong & China Gas company in Hong Kong and (0003.hk) mainland China • A HSI constituent stock 62.53% • Major city-gas operator in Towngas China mainland China (1083.hk) 3

  4. Slide 4: Territorial Coverage

    Territorial Coverage As of Jan 31, 2016 Profile City-gas 6 projects added, total 102 projects Midstream in 18 provincial regions Heilongjiang Refilling station 6 Major Industries Other TCCL in the Operating Jilin New Projects Stake Investment Regions Liaoning 1 Wulian 70% Rmb202Mn Automobile parts a

  5. Slide 5: Number of Projects

    Number of Projects 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 25 37 40 47 61 66 74 87 97 102 120 Injection from HKCG 100 New Acquired 6 10 Existing 80 14 8 5 60 6 8 96 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 5

  6. Slide 6: Financial and Operational Performance

    Financial and Operational Performance 6

  7. Slide 7: 2015 Results Highlights

    2015 Results Highlights Operating Profit After Tax 1% Gas Sales New Total Projects Total Customers Volume Connections 1% +6 +803,000 1,042,000 7

  8. Slide 8: Results Highlights (Financial)

    Results Highlights (Financial) (HK$Mn) FY14 FY15 Change Turnover Gas Sales 6,205 6,011 -3% Connection Fees 1,677 1,708 +2% 7,882 7,718 -2% Operating Profit After Tax 1,195 1,202 +1% Profit attributable to 1,054 807 -23% shareholders Basic EPS (HK cents per share) 40.19 30.45 -24% 8

  9. Slide 9: HKD Borrowings: Appreciation Depreciation

    TCCL: HKD Borrowings [%] HKD Borrowing Rates RMB Benchmark Lending Rates (3 year) 8 6 4.0 5.1 4 5.0 4.9 4.5 2 - 2011 2012 2013 2014 2015 [%] HKD/RMB Exchange Rates Movement Appreciation 6 3.7 4 2.8 1.7 2 0 Depreciation -2 -2.6 -4 -4.5 -6 Better Off +7.7% +6.8% +7.8% +2.3% 0% HKD Loan vs RMB Loan 9

  10. Slide 10: Non-Rmb Borrowings

    Non-Rmb Borrowings Rmb Bank Loans Secured lines: Rmb5Bn Reduce FX Exposure Panda Bonds Hybrid Instruments 10

  11. Slide 11: Growing Gas Sales Volume

    Growing Gas Sales Volume (Bn m³) FY14 FY15 Change Industrial 3.8 3.7 -4% Commercial 1.1 1.1 +3% Residential 1.6 1.8 +12% Total 6.5 6.6 +1% 7 6.5 6.6 5.9 6 5.3 Gas Sales Volume (Bn m³) 5 4.7 4.0 4 3.2 3 2.7 2.1 2 1 0 2007 2008 2009 2010 2011 2012 2013 2014 FY15 11 *All JVs (100%)

  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) 308 305 11 310 27% 24% 275 9 240 7 17% 59% 56% 205 17% 9.2 10.0 5 170 3 135 FY14 FY15 1 100 FY14 FY15 * All JVs (100%) 12

  13. Slide 13: Favorable Natural Gas Gate Price

    Favorable Natural Gas Gate Price ► 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

  14. Slide 14: 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 J

  15. Slide 15: 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

  16. Slide 16: Thank You

    38 Mm AIRC Towngas China Company Limited 16

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