Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — Towngas China Company — FY2014 Earnings Presentation
16 slides from Towngas Smart Energy's earnings presentation, Mar 19, 2015
Slide 1: Towngas China 2014 Annual Results Presentation
Towngas China (1083.hk) 2014 Annual Results Presentation 1
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
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 62.39% • Major city-gas operator in Towngas China mainland China (1083.hk) 3
Slide 4: Territorial Coverage
Territorial Coverage As of Feb 2015 Heilongjiang 11 projects added, total 98 projects in 18 provincial regions Jilin Liaoning Hebei Inner Mongolia Beijing Profile Shanxi City-gas Shandong Jiangsu Midstream Shaanxi Henan Anhui Refilling station Hubei Sichuan Chongqing Zhejiang Other Hunan Jiangxi Fuj
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 98 120 Injection from HKCG 100 New Acquired 1 10 Existing 80 14 8 5 60 6 8 97 40 3 7 87 66 73 10 2 61 20 40 47 37 25 25 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 5
Slide 6: New Projects 2014-2015YTD
New Projects 2014-2015YTD 8 City-gas + 1 Refilling Station + 1 Midstream & 1 Other projects Heilongjiang 9 1. 1 Leshan, Sichuan 3 2. 2 Songyang, Lishui, Zhejiang Jilin 3. 3 Siping, Jilin Liaoning 4. 4 Xingyi, Guizhou Inner Mongolia Hebei City-gas 5. 5 Guyang, Baotou, Inner Mongolia 5 8 6. 6 Tongshan
Slide 7: Financial and Operational Performance
Financial and Operational Performance 7
Slide 8: 2014 Results Highlights
2014 Results Highlights Operating Profit After Tax before exchange diff. ñ26% Gas Sales New Total Projects Total Customers Volume Connections ñ10% +10 +785,000 975,300 8
Slide 9: Results Highlights (Financial)
Results Highlights (Financial) (HK$Mn) FY13 FY14 Change Turnover Gas Sales 5,265 6,205 +18% Connection Fees 1,451 1,677 +16% 6,716 7,882 +17% Operating Profit After Tax 946 1,195 +26% Exchange Gain/(Loss) 160 (141) Profit attributable to 1,106 1,054 -5% shareholders Basic EPS (HK cents per share) 42
Slide 10: Growing Gas Sales Volume
Growing Gas Sales Volume (Bn m³) 2013 2014 Change Industrial 3.50 3.84 +10% Commercial 0.99 1.08 +8% Residential 1.45 1.59 +9% Total 5.94 6.51 +10% 7 6.5 5.9 6 5.3 Gas Sales Volume (Bn m³) 5 4.7 4.0 4 3.2 3 2.7 2.1 2 1.3 1 0 *All JVs (100%) 2006 2007 2008 2009 2010 2011 2012 2013 2014 10
Slide 11: Gas Sales Volume of JVs
Gas Sales Volume of JVs Volume (Mn m3) 2013 2014 Change Subsidiaries 1,575 1,726 +10% JCEs & Associates 3,245 3,567 +10% Chengdu JV 1,124 1,218 +8% Total 5,945 6,511 +10% Excluding Chengdu 4,820 5,293 +10% Note: Chengdu JV with 13% shareholding is classified as financial investment 11
Slide 12: Operational Highlights
Operational Highlights Gas Sales Volume Mix (%) Productivity Customers No. (LHS) Residential Commercial Industrial Gas Volume/Employee (RHS) (Mn) (‘000 m³) 10 308 24% 293 300 24% 8 260 220 17% 59% 17% 59% 6 9.2 8.5 180 4 2013 140 2014 2 100 2013 2014 * All JVs (100%) 12
Slide 13: 3rd NG Gate-Price Adjustment and Unification
3rd NG Gate-Price Adjustment and Unification ▌ Effective 1 April 2015 ▌ Affect non-residential customers ▌ Unified ‘Additional’ and ‘Existing’ gas volume prices ▌ Additional gas volume: -Rmb0.44/m³ ▌ Existing gas volume: +Rmb0.04/m³ ▌ Expecting Group’s average incoming price decrease Rmb0.1/m³ ▌ Mor
Slide 14: Sino-Russian Gas Supply
Sino-Russian Gas Supply Russian Gas NE China Welcoming the Russian Gas •Expected arrival in 2018 •Ramping up to 38bn m³ per year Heihe Total City-gas projects Qiqihar Lianfu Harbin Songyuan Changlin Changchun Jilin Gongzhuling Siping Jitian Xinqiu/Dali Yanji Jianping Fuxin Tieling Chaoyang Shenyang
Slide 15: Outlook
Outlook ▶ Gas sales volume annual double digit increase for next five years ▶ Water heating and space heating potential in Northern part of mainland China increasing household average consumption ▶ Price reforms help NG remain competitive ▶ Environmental pressure help NG replace dirty fuels ▶ Less c
Slide 16: Thank You
38 52 iM Fa Towngas China THANK YOU #5 ERE e | if eas oe 2 * ee 4) (i LNG 2 hh 16