Clp Holdings Limited · HKEX:2
Clp — H1 2022 Earnings Presentation
58 slides from Clp's earnings presentation, 2022
Slide 1: 2022 Interim Results Presentation
CLP Holdings 2022 Interim Results Presentation
Slide 2: Disclaimer
Disclaimer Potential investors, analysts and shareholders of CLP Holdings Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you ma
Slide 3: Agenda
Agenda Overview Richard Lancaster, Chief Executive Officer Financial Performance and Outlook Nicolas Tissot, Chief Financial Officer Strategy and Roadmap Richard Lancaster, Chief Executive Officer Simulated photo Questions and answers Black Point Power Station, Hong Kong Appendices 2
Slide 4: Overview
Overview Yangjiang Nuclear Power Station, Guangdong, Mainland China 3
Slide 5: Group summary and outlook
Group summary and outlook Core business strong Global market conditions Our Focus Solid performance in Challenging global Decarbonise Hong Kong and environment Mainland China impacting thermal, Grow exceptional market Strengthened conditions and Transform strategic partnership operational in Apraava
Slide 6: 1H2022 Financial and operational highlights
1H2022 Financial and operational highlights Operating Earnings impacted by EnergyAustralia fair value movements. Reliable operational performance. Financial Highlights Operational Highlights Operating Earnings HoH change Safety & Customers HoH change Before EA fair value Total recordable injury rate
Slide 7: Financial Performance and Outlook
Financial Performance and Outlook Qian’an III Wind Farm, Jilin, Mainland China 6
Slide 8: 1H2022 Financial overview
1H2022 Financial overview Solid contribution from Hong Kong and Mainland China. Losses mainly attributable to Australia Revenue EBITDAF (1) ACOI (1) HK$47,594 million HK$10,844 million HK$6,125 million 17% 16% 27% Operating Earnings (1) Total Earnings Capital Investment (2) Operating Earnings (befor
Slide 9: Operating Earnings by region
Operating Earnings by region HK$M 1H2022 1H2021 Change Hong Kong energy and related activities 4,200 3,998 5.1% Solid performance in HK Mainland China 1,240 962 28.9% Higher zero-emission EnergyAustralia – before fair value movements (726) 647 n/a portfolio partially offset by high coal prices Apraa
Slide 10: Adjusted Current Operating Income (ACOI) by business unit
Adjusted Current Operating Income (ACOI) by business unit Lower ACOI driven by losses at EnergyAustralia despite solid performance in Hong Kong & Mainland China HK$m 10,000 8,379 358 8,000 (146) (34) 34 6,125 (1,982) 26% 6,000 (279) excl. FX (205) SEA & Taiwan 4,000 Apraava Energy EnergyAustralia Ma
Slide 11: Hong Kong ACOI
Hong Kong Higher earnings reflecting progress in major projects offset by lower SoC allowable costs 8,000 214 12 5,816 5,856 6,000 0.6% ACOI (HK$m) (6) excl. FX (260) 4,000 2,000 - 1H2021 FX Return on higher Others Lower SoC 1H2022 fixed assets allowable costs Performance Outlook • ACOI was flat: Re
Slide 12: Mainland China ACOI
Mainland China Strong performance from nuclear and renewables, continued impact of high coal prices on thermal 44 132 1,552 1,600 186 30% 1,250 (4) 566 excl. FX 1,200 (56) Renewables ACOI (HK$m) 800 Nuclear 1,136 Thermal 400 Others - 11 (161) (400) 1H2021 FX Nuclear Renewables Thermal Others 1H2022
Slide 13: EnergyAustralia ACOI
EnergyAustralia Lower earnings due to exceptional market conditions and operational challenges 1,500 Gross Margin Opex and D&A 996 1,000 (63) 500 ACOI (HK$m) 212% - excl. FX (500) (1,503) 548 (1,000) 100 (187) (1,049) (1,500) (940) (2,000) 1H2021 FX Mt Piper Yallourn Other Energy Customer and Opex a
Slide 14: Impact of Mount Piper generation shortfall
Impact of Mount Piper generation shortfall NSW Average Spot Price by Month 2021 vs 2022 450 Difference 2021 2022 Average Monthly Spot Price (A$/MWh) between 2022 400 Appox av. market monthly 350 contract price for average spot Cal 2022 price (orange 300 bar) and Unprecedented and 250 approx. sustain
Slide 15: Apraava Energy ACOI
Apraava Energy Earnings from KMTL transmission off the back of strengthening of CDPQ partnership 600 97 494 476 7.4% ACOI (HK$m) 400 (16) excl. FX (37) (26) 270 Renewables Transmission 200 110 Thermal 114 - 1H2021 FX Renewables Thermal KMTL Transmission 1H2022 Performance Outlook • ACOI up 7.4%: Con
Slide 16: Southeast Asia and Taiwan ACOI
Southeast Asia and Taiwan Ho-Ping margin squeezed by high coal costs to be compensated in next tariff adjustment 200 158 (4) 181% ACOI (HK$m) 100 (28) excl. FX 9 Renewables - (129) Thermal (100) 3 Others (5) (254) (125) (200) 1H2021 FX Renewables Thermal Others 1H2022 Performance Outlook • ACOI down
Slide 17: Cash flow and working capital
Cash flow and working capital Lower free cash flow mainly due to higher margin deposits Cash Flows (HK$ billion) Capex and Dividends (HK$ billion) Capex 10 8 7.0 6 5.4 1.9 0.5 6.1 4 5 4.9 5.1 (1.2) (0.1) 2 0 (2.4) 1H2021 1H2022 SoC Capex Other Capex and Acquisitions 0 Dividends 6 4 (5.8) (3.4) 4.6 4
Slide 18: Robust financial situation
Robust financial situation Healthy capital structure and liquidity position Net Debt Net Debt/Total Capital Liquidity Position Undrawn facilities and cash balance (HK$ billion) HK$58.9 billion 32.7% 40 37.9 36.4 8.6 8.3 30 28.2 Debt Maturity Debt Composition 23.2 6.2 3.7 Within 1 20 year Floating 22
Slide 19: Strategy and Roadmap
Strategy and Roadmap Sihong Solar Power Station, Jiangsu, Mainland China 18
Slide 20: Our focus to decarbonise, grow and transform
Our focus to decarbonise, grow and transform Our Focus Decarbonise our Grow in energy Transform to a operations and transition and Utility of the Future invest in non-carbon electrification Championing sustainability and its continued integration into our business 19
Slide 21: Decarbonisation roadmap
Decarbonisation roadmap NEW ASSETS New assets on this chart are indicative only and do not represent actual forecasts or future results Castle Peak A Yallourn Fangchenggang RETIREMENTS Castle Peak B Jhajjar Exit from coal complete by 2040 Ho-Ping Mt Piper Mainland China JVs 2020 2030 2040 2050 20
Slide 22: Hong Kong's path to net zero
Hong Kong’s path to net zero Black Point CCGT & Offshore LNG Import clean energy Infrastructure, power systems and diversified fuels Customer solutions Replace coal Build more Regional corporation Repurpose gas Portfolio of solutions with gas renewables in non-carbon with hydrogen to help customers
Slide 23: Growth opportunities in energy transition and electrification
Growth opportunities in energy transition and electrification Positioning for long-term sustainable growth and returns E-transportation Battery-as-a-service Energy efficiency Customer and industry energy LNG bunkering Solar-as-a-service Rooftop solar & battery bundles solutions Distributed energy Da
Slide 24: Accelerating transformation
Accelerating transformation Building CLP of the future to unlock value for customers and shareholders Transition to net zero Clean energy solutions Outstanding customer engagement & experience Utility of the Future Leader in Asia Pacific with strong network of partners World class efficiency Empower
Slide 25: Questions and Answers
CLP@ ps Questions and Answers retreat 24
Slide 26: Appendices
Appendices 2022 Annual General Meeting 25
Slide 27: CLP Group – Financial highlights
CLP Group – Financial highlights 1H2022 1H2021 Change Revenue (HK$M) 47,594 40,729 +16.9% Operating Earnings (before EA Fair Value Movements) (HK$M) 4,111 5,508 -25.4% Operating Earnings (HK$M) (3,846) 5,698 n/a Total Earnings (HK$M) (4,855) 4,615 n/a Operating Earnings per share (HK$) (1.52) 2.26 n
Slide 28: Items affecting comparability
Items affecting comparability Apraava Energy Measurement loss relating to sell down • Pending completion of the sell down of 10% of Apraava Energy, the assets and liabilities of Apraava Energy were HK$M 1H2022 1H2021 reclassified to as held for sale and measured at fair value and a measurement loss
Slide 29: CLP Group – Operating highlights
CLP Group – Operating highlights 1H2022 1H2021 Change Safety (Total recordable injury rate) (2) 0.27 0.19 (1) +0.08 Reliability in Hong Kong (minutes lost pa) (3) 5.71 0.97 +4.74 Customer accounts (Thousand) Hong Kong 2,727 2,687 +40 Australia 2,448 2,435 +13 Electricity sent out (TWh) (4) 41.1 45.0
Slide 30: Reconciliation of Operating Earnings to ACOI
Reconciliation of Operating Earnings to ACOI Adjusted Current Operating Income or ACOI HK$m 1H2022 1H2021 Change • ACOI equals EBIT excluding items affecting comparability and fair value adjustments, and includes the Group’s share in Operating Earnings earnings from joint ventures and associates (3,
Slide 31: CLP Group – Reconciliation of Operating Earnings and ACOI
CLP Group – Reconciliation of Operating Earnings and ACOI Hong Kong energy and Other earnings & HK$M Mainland China EnergyAustralia Apraava Energy SEA & Taiwan Group total related activities unallocated items 2022 Interim Operating Earnings 4,044 1,367 (8,683) 98 (126) (546) (3,846) (as per Segment
Slide 32: CLP Group – Cash flow and financial structure
HK$M 1H2022 1H2021 CLP Group – Cash flow and Cash Flow EBITDAF 9,186 11,423 financial structure Less: Items affecting comparability 1,658 1,530 Recurring EBITDAF 10,844 12,953 Cash Flow Less: Share of results of joint ventures & (1,168) (1,139) • Lower free cash flow mainly reflected lower earnings,
Slide 33: Dividends
Dividends A history of returning cash to shareholders CLP Ordinary Dividend 1990 – 1H2022 and Shareholding by Category HK$ 3.5 Interests Institutional 3.08 3.10 3.10 associated 2.91 3.02 3.0 Investors 2.80 with Kadoorie 2.70 2.62 33% 35% Family 2.5 As at 31 Dec 2021 1.19 1.19 1.21 1.21 1.14 1.09 1.0
Slide 34: CLP Group – Financial obligations at a glance
CLP Group – Financial obligations at a glance HK$M 30 Jun 2022 31 Dec 2021 HONG KONG Total borrowings of CLPH, CLPP, CAPCO & PSDC 52,082 46,534 Increase in the Group’s net debt Minus: Bank balances and liquid funds (439) (6,431) to total capital was mainly due to Net debt – Hong Kong 51,643 40,103 h
Slide 35: CLP Group – Credit ratings
CLP Group – Credit ratings CLP Holdings CLP Power CAPCO EnergyAustralia S&P Moody’s S&P Moody’s S&P Moody’s S&P In July 2022, S&P affirmed the A Long-term Rating credit rating of CLP Holdings with stable outlook. Foreign Currency A A2 A+ A1 AA- A1 BBB- Outlook Stable Stable Stable Stable Stable Stab
Slide 36: CLP Group – Highlights of financing activities
For more information on CLP Group – Highlights of financing activities CLP Climate Action Finance Framework CLP Holdings: Ample liquidity in the Group at 30 June 2022 Mainland China: Continued financing at competitive terms • Undrawn facilities HK$19.5 billion, bank balances HK$3.7 billion • Arrange
Slide 37: CLP Group – Loan balances by type and maturity
CLP Group – Loan balances by type and maturity Loan Balance - Type Loan Balance – Maturity (1) Proportion of Debt on Fixed HK$M HK$M and Floating Rate 70,000 70,000 60,000 3% 60,000 2% 22% 28% 18% 50,000 25% 50,000 11% 9% 40,000 40,000 39% 17% 21% 48% 52% 30,000 30,000 Jun 2022 59% 61% 66% 20,000 20
Slide 38: Hong Kong – Growing business scale
Hong Kong – Growing business scale Generation Transmission Distribution Retail 10,445 MW > 16,600 km of transmission and 238 primary and > 15,200 15,743 GWh sold and generation portfolio high voltage distribution lines secondary substations 2.727 million customer accounts During 1H2022: • Local elec
Slide 39: Hong Kong – Electricity sales, earnings and capex
Hong Kong – Electricity sales, earnings and capex Electricity sales Capital expenditure (Accrual basis) GWh 1H2022 1H2021 Change Proportion HK$M 1H2022 1H2021 Change Residential 4,332 4,561 5.0% 27% CLP Power Hong Kong 2,116 2,080 1.7% Commercial 6,081 6,383 4.7% 39% CAPCO * 2,766 2,712 2.0% Infrast
Slide 40: Hong Kong – Tariff, reliability and environmental improvement
Hong Kong – Tariff, reliability and environmental improvement Low tariff High reliability HK$/kWh Unplanned customer minutes lost per year 3.5 30 29 3.0 2.5 20 2.0 14 14 1.5 10 1.0 1.0 1.6 0.5 0 CLP Power Singapore London Sydney New York 0.0 (CBD) CLP Power Singapore Sydney London New York Remarks:
Slide 41: Mainland China – Financials (HK$)
Mainland China – Financials (HK$) HK$m Operating/Total Earnings ACOI 1H2022 1H2021 1H2022 1H2021 Renewables 347 320 566 522 - Wind 205 231 299 322 - Hydro 41 (18) 94 19 - Solar 101 107 173 181 Nuclear 1,042 869 1,136 945 - Daya Bay 466 425 491 447 - Yangjiang 576 444 645 498 Thermal 12 (129) 11 (121
Slide 42: Mainland China – Financials (RMB)
Mainland China – Financials (RMB) RMB’m Operating/Total Earnings ACOI 1H2022 1H2021 1H2022 1H2021 Renewables 289 267 471 435 - Wind 171 193 249 268 - Hydro 34 (15) 78 16 - Solar 84 89 144 151 Nuclear 866 724 945 788 - Daya Bay 387 354 408 373 - Yangjiang 479 370 537 415 Thermal 10 (107) 9 (101) - Sh
Slide 43: Mainland China – Earnings, performance and opportunities
Mainland China – Earnings, performance and opportunities Earnings and performance Business development opportunities • Higher earnings from Nuclear was mainly due to higher • There are two grid-parity wind projects: the 50MW generation and higher tariff of Yangjiang Xundian II project in Yunnan prov
Slide 44: Mainland China – Market sales in 1H2022
Mainland China – Market sales in 1H2022 Province Projects with Market Sales (Equity MW) Guangxi FCG Thermal (1,806MW) Yunnan Xundian Wind (50MW) Xicun Solar (84MW) Dali Yang_er Hydro (50MW) JILIN Inner Mongolia Zhungeer Thermal (257MW) LIAONING Hebei Sanhe Thermal (220MW) GANSU INNER Tianjin Panshan
Slide 45: EnergyAustralia – Financials
EnergyAustralia – Financials HK$m Local Currency 1H2022 1H2021 1H2022 1H2021 HK$M HK$M A$M A$M EBITDAF (before items affecting 146 2,127 26 363 comparability) Depreciation & Amortisation (1,195) (1,131) (214) (189) ACOI Customer (Retail) (1) 779 333 139 56 Energy (Wholesale) (1,126) 1,568 (201) 270
Slide 46: EnergyAustralia – Customer operations
EnergyAustralia – Customer operations Customer Account Numbers Sales Volume & Revenue 1H2022 1H2021 1H2022 1H2021 Customer Account Numbers (000s) Sales Volume & Revenue Electricity Electricity Electricity Gas Total Electricity Gas Total Gas (PJ) Gas (PJ) (TWh) (TWh) Mass Market 1,591.3 845.8 2,437.1
Slide 47: EnergyAustralia – Supporting customers experiencing hardship
EnergyAustralia – Customer operations Supporting customers experiencing 64% of bills issued in 1H2022 hardship – were E-bills 23.5k customers utilising EnergyAssist • Compared with 5% in 2015 programme • Improving 6pts since 2020 15 Ombudsman complaints/10k accounts 30.7pts improvement in • 76% redu
Slide 48: EnergyAustralia – Wholesale market conditions
EnergyAustralia – Wholesale market conditions • Australia has seen unprecedented increases in the cost of energy, Year Ahead Swap Prices (1) mainly driven by heavy rains and geological issues slowing domestic 250 NSW coal supply, cyclically low wind and solar production, untimely generator VIC outag
Slide 49: EnergyAustralia – Fair value movements
EnergyAustralia – Fair value movements • The significant change in fair value movements of energy derivatives has resulted from a rapid escalation in forward prices. In line with long- standing risk management and hedging policies, EnergyAustralia sold contracts at prevailing market prices over the
Slide 50: Apraava Energy – Financials
Apraava Energy – Financials HK$m Local Currency (Rs M) 1H2022 1H2021 1H2022 1H2021 Renewables 270 318 2,638 3,004 Thermal (Jhajjar) 159 193 1,553 1,823 Thermal (Paguthan & Corporate) (45) (48) (440) (453) Transmission 110 13 1,075 123 ACOI 494 476 4,826 4,497 Renewables 73 83 713 784 Thermal (Jhajja
Slide 51: Apraava Energy – Performance and projects
Apraava Energy – Performance and projects Performance Expanding our renewable generation portfolio • Apraava Energy maintained solid performance of its • Construction of the new 251MW wind energy project in portfolio of generation and power transmission assets as a Sidhpur in Gujarat state continued
Slide 52: Southeast Asia & Taiwan – Financials
Southeast Asia & Taiwan – Financials HK$ Local Currency 1H2022 1H2021 1H2022 1H2021 HK$M HK$M M M Thermal (129) 127 (NT$474) NT$458 Renewables 9 39 THB39 THB159 Others (5) (8) ACOI (125) 158 Thermal (129) 127 (NT$474) NT$458 Renewables 8 33 THB35 THB133 Others (5) (8) Operating earnings/Total earnin
Slide 53: CLP Group – Generation and energy storage portfolio – 30 Jun 2022
CLP Group – Generation and energy storage portfolio(i) – 30 Jun 2022 19,981 Equity MW and 5,098 MW Long Term Purchase (total 25,079 MW) ENERGYAUSTRALIA total 5,786MW* HONG KONG total 8,268MW* Operational Operational Yallourn 1,480 / 1,480 (c) Castle Peak A&B 4,108 / 4,108* (c) Mount Piper 1,430 / 1,
Slide 54: CLP Group – Renewable generation portfolio – 30 Jun 2022
CLP Group – Renewable generation portfolio(i) – 30 Jun 2022 2,743 Equity MW and 881 MW Long Term Purchase (total 3,624MW) - 14% of CLP total generation portfolio MAINLAND CHINA 1,828 MW ENERGYAUSTRALIA 910 MW* APRAAVA ENERGY 855 MW Operational Operational Operational Wind 1,010 MW Wind 616 MW Wind 5
Slide 55: CLP Group – Generation and energy storage capacity by fuel mix
CLP Group – Generation and energy storage capacity(i) by fuel mix 25,079 MW Attributable to CLP Group Operational Under construction Capacity by Total MW % MW % MW % Energy Type (a) + (b) (a) (b) Coal 11,657 46% 11,657 46% - - Gas 6,154 25% 5,238 21% 916 4% Nuclear 2,685 11% 2,685 11% - - Wind 2,331
Slide 56: CLP Group – Energy sent out – 1H2022
CLP Group – Energy sent out – 1H2022 TWh (1) Energy Sent Out 20 CLP 2022 Interim Generation 17.0 as Sent Out(1) 16.2 15 14.2 43% 24% 21% 52% 12.0 1H2022 10.3 1% 2% 10 9.5 2% 5% 1H2021 2% 6% 19% 23% 1H2021: 45.0 TWh 1H2022: 41.1 TWh 5 2.7 2.8 0.9 0.7 0 -5 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 1H2
Slide 57: Additional resources
Additional resources Scan or click on the QR codes to go to appropriate pages Interim Report 2022 Annual Report 2021 Sustainability Report Climate-related 2021 Disclosures Report 2021 Introductory Pack August 2022 Annual Results Presentation Annual 2021 56
Slide 58: Thank you
Thank you If you have any questions, please contact You can access this IR team or email ir@clp.com.hk presentation and other materials through our website or CLP IR App which can be downloaded onto your mobile device by clicking here or by scanning this code below. 57