Enn Natural Gas Co., Ltd. Class A · SSE:600803

Enn Natural Gas Co., Ltd. Class A — 9M2023 Earnings Presentation

22 slides from Enn Natural Gas Co., Ltd. Class A's earnings presentation, October 2023

  1. Slide 1: 9M2023 Results

    ENN | RRA AIRAAl M28 | ENN Natural Gas Co., Ltd. Sl. Ati 9M2023 Results i October 2023

  2. Slide 2: Results Highlights

    Results Highlights Developed a total of 218 direct gas customers; direct gas sales reached 3,671 mil m3, up 33.3% YOY Completed the disposal of coal mine assets, focused on the main business of natural gas, and improved the company's sustainable development ability Natural gas industry intelligent p

  3. Slide 3: Content

    Content RESALE it eS Business Review 9 Financial Highlights @ ENN

  4. Slide 4: Aggregated Customer Demand via greatgas.cn and Natural Gas Business Expansion

    1.1.1 Aggregated Customer Demand via greatgas.cn and Promoted Expansion of Natural Gas Business Direct Gas Sales mil m3 Retail Gas Sales mil m3 3,671 33.3% 2,754 18,832 17,955 -4.7% 9M2022 9M2023 9M2022 9M2023 1,435 6,840 7,050 1,328 6,225 1,231 5,767 5,793 5,112 908 770 753 1Q 2Q 3Q 1Q 2Q 3Q ■ 2022

  5. Slide 5: Direct Gas Sales Expanded Rapidly Leveraging Diversified Resources

    1.1.2 Direct Gas Sales Expanded Rapidly Leveraging Diversified Resources and Efficient Delivery Network 2,843 2,275 137.1% 1,707 1,396 1,047 1,199 0 9M2022 9M2023 9M2022 9M2023 International direct gas sales Domestic direct gas sales 4% 0.79 14% Developed a total 45% of 218 direct gas 0.41 customers

  6. Slide 6: Achieved stable profits through a combination of physical and derivatives

    1.1.3 Achieved stable profits through a combination of physical and derivatives  The company hedged the profits and losses generating by the future physical profits and losses through the fair value change of derivatives on hand in the way of combining physical with derivatives, so as to achieve th

  7. Slide 7: The GreatGas.cn Developed Rapidly Relying on the Company's Capabilities

    1.1.4 The GreatGas.cn Developed Rapidly Relying on the Company’s Capabilities in the Natural Gas Industry  As of 9M2023, GreatGas.cn achieved a total of 3,677 new certified corporate users New certified corporate New trading gas New gross merchandise users volume volume (GMV) 1,293 5.9 bil m3 RMB 1

  8. Slide 8: Developed Engineering Construction Business Driven by Low Carbon and Digital Intelligence

    1.2 Developed Engineering Construction Business Driven by Low Carbon Digital and Digital Intelligence 7,477  Newly signed 18,000 Nm3/h NG reforming to syngas cogeneration hydrogen, Yining green RMB power hydrogen production, Linyi Steel 2,143 mil Investment and other projects  Improved technical c

  9. Slide 9: Highlights of ENN Energy

    1.3 Highlights of ENN Energy Natural Gas Distribution Integrated Energy Value Added business 14,982 24,430 699.3 14,048 18,208 12% 3,460 3,625 503.4 5% 39% 31% 64% 49% 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 “Gratle” Product Sales (’000 unit） Steam Cooling & heating Electricity 9M202

  10. Slide 10: Content

    Content RESALE it eS Business Review 9 Financial Highlights @ ENN

  11. Slide 11: Resilient Results

    2.1 Resilient Results Unit: RMB mil 9M2023 9M2022 Change Total Revenue 95,972 106,686 -10.0% Gross Profit* 16,327 015,236 07.2% EBITDA* 15,690 014,698 6.7% Total Profit 09,176 09,441 0- 2.8% Net Profit Attributable 03,103 03,159 -1.8% to Parent Core Profit* 04,674 03,980 17.4% Core EPS（RMB） 001.52 0

  12. Slide 12: Sustainable Growth of Core Profit

    2.2 Sustainable Growth of Core Profit Unit: RMB mil Main excluded items in the calculation of core profit 9M2023 9M2022 Net Profit Attributable to Parent 3,103 3,159 Bad debts and asset impairment 0 0-79 0-41 Changes in fair value of derivatives -1,139 0 365 Non-cash factor Changes in FX gains and l

  13. Slide 13: Sound debt structure and CAPEX

    2.3 Sound debt structure and CAPEX Total Debt & Cash on Hand (RMB mil) CAPEX (RMB mil) 87.10 8,710 38,765 40,015 63.97 6,397 2,804 932 17,328 13,631 5,906 5,465 9M2022 9M2023 9M2022 9M2023 Total debt Cash on hand Natural gas distribution Energy production &Others 13

  14. Slide 14: Abundant Free Cash Flows and Steadily Rising Payout Ratio

    2.4 Abundant Free Cash Flows and Steadily Rising Payout Ratio  Sustained growth in the principal business, coupled with prudent financial management, generated positive free cash flow for years, enabling a steady increase in dividend payout  Over the next three years, the annual increase in divide

  15. Slide 15: Disclaimer

    免责声明 Disclaimer The information provided to you in this presentation is for reference only and does not constitute or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of ENN-NG (“the Company”), nor shall it form the basis of,

  16. Slide 16: Appendix 1. Company overview

    Appendix 1. Company overview • ENN-NG (stock code: 600803.SH) was listed in 1994. Relying on the best industry practices, ENN-NG has built an intelligent operation platform for the natural gas industry (www.greatgas.cn), to aggregate natural gas demands, resources, delivery and reserve and develop i

  17. Slide 17: Appendix 2. Details of long-term LNG contracts

    Appendix 2. Details of long-term LNG contracts Contract vol Delivery No. Buyer Seller Tenor Gas resources Start year Index-linked （mil tons/yr） method 1 ENN Energy Chevron 10 years 0.66 DES Global resources 2018 JCC 2 ENN Energy Total 10 years 0.50 DES Global resources 2018 JCC/HH 3 ENN Energy Origi

  18. Slide 18: Appendix 3. Transfer of 100% equity interest in Xinneng Mining Company

    Appendix 3. Transfer of 100% equity interest in Xinneng Mining Company Transaction consideration Transaction key milestones and processes 12 Sep, 2023 19 Oct, 2023 • Total：RMB 10,505 mil • Obtained board approval Compled the transfer of Equity consideration：RMB 6,670 mil • Signed the agreement equit

  19. Slide 19: Appendix 4. Effect of exchange rate fluctuations on exchange gains and losses

    Appendix 4. Effect of exchange rate fluctuations on exchange gains and losses Trend chart of exchange rate fluctuations and exchange gains/losses 7.50 14.00 7.00 7.00 6.50 6.00 0.00 5.50 2020/9/30 2020/12/31 2021/3/31 2021/6/30 2021/9/30 2021/12/31 2022/3/31 2022/6/30 2022/9/30 2022/12/31 2023/3/31

  20. Slide 20: Appendix 5. Analysis of Core Profit Deductions - Changes in fair value of derivatives

    Appendix 5. Analysis of Core Profit Deductions - Changes in fair value of derivatives • The valuation of the mark-to-market gains and losses on commodity derivatives under accounting standards was reflected as a gain on changes in fair value, with the effect of physical and derivatives combination e

  21. Slide 21: Appendix 6. Net Profits Deducting Non-recurring Profits and Losses

    Appendix 6. Net Profits Deducting Non-recurring Profits and Losses Unit: RMB mil Main items excluded for calculating the profits deducting non- recurring profits and losses 9M2023 9M2022 Net Profits Attributable to the Parent 3,103 3,159  The government subsidies for aging pipeline upgrades and Gai

  22. Slide 22: Appendix 7. Simplified Model for a Typical City-gas Project & IE Project

    Appendix 7. Simplified Model for a Typical City-gas Project & IE Project Cash flow break-even Cash flow break-even y1 y2 y3 y4 y5 y6 y7 y8 y9 y10 y11 y1 y2 y3 y4 y5 y6 y7 y8 y9 y10 y11 CapEx Revenue Free cash flow Revenue Gas Usage Fee Connection Fee CapEx Free Cash Flow 1. Stable & Recurring Income

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