Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — H1 2021 Earnings Presentation
38 slides from Towngas Smart Energy's earnings presentation, Aug 20, 2021
Slide 1: Towngas China 2021 Interim Results
Towngas China (1083.HK) 2021 Interim Results
Slide 2: Mt Sa
383 22 Mt Sa eae
Slide 3: 1H21 financial results summary
(Unit: HK$ million) 1H20 1H21 Change Revenue Gas Sales 4,669 6,514 +40% Connection Fees 753 904 +20% Extended Business 141 355 +152% 5,563 7,773 +40% Operating Profit 824 1,042 +26% Profit Attributable to Shareholders 581 778 +34% Earnings Per Share (HK cents) 20.2 26.2 +30% 3
Slide 4: Average exchange rate 2021 forecast
2019 2020 2021 1H 2021F Avg ER: Avg ER: Avg Exchange Rate: - 4% Avg Exchange Rate: - 1% + 8.6% + 6.7% 7.40 7.20 Average: Average: 7.00 Rmb6.47 Rmb6.47 6.80 6.60 Average: 6.40 Average: Rmb6.93 Rmb6.89 6.20 6.00 2019 2020 2021 (Forecast) 4
Slide 5: Cumulative total HK$7.4 billion
(Unit: HK$ billion) Cumulative Total = HK$7.4 billion 1.0 0.9 0.8 0.8 0.7 0.7 0.7 0.7 0.5 0.2 0.2 0.1 0.1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5
Slide 6: Financial position and credit rating
31 Dec 30 Jun 31 Dec 19 Aug 2020 2021 2020 2021 HK$ billion HK$ billion Total Assets 42.9 49.1 P/E Ratio 7.1x 9.4x Net Assets 22.6 22.9 P/B Ratio 0.5x 0.7x Cash & 2.3 2.5 Bank Balances Total BBB+ 11.5 17.2 Credit Rating: Borrowings Interest 7.8x 7.9x Baa1 Coverage Ratio Gearing Ratio 28.9% 39.0% 6
Slide 7: 2021 Guidances
2021 Guidances Gas sales 7.26B m3, a growth of 32% >20% 2 new gas projects with annual gas sales 35M m3 >5 projects 420K new customers to 14.56M > +800K customers Net profit HK$778M, a growth of 34% Total 20M including Shanghai Gas 7
Slide 8: Gas sales volume growth
Billion 100 millionm m33 Towngas China +32% (National:+17%) Non-residential of 80% favour cost pass-thru 80 8 60 Industrial 6 50% 7.26 72.6 Commercial 40 4 Residential 5.51 55.1 Wholesale & 2 20 Power Plant 1H21 00 Distributed 7.26B m3 14% June 2020 2020年6月 June 2021 2021年6月 Energy Systems 13% Billi
Slide 9: Selling price, procurement cost and unit opex
Selling Price (Rmb/m3) 1H20 2020 1H21 • Sourcing low-cost LNG & piped gas Residential 2.55 2.59 2.62 • Cost savings to reduce Opex Industrial 2.57 2.53 2.71 Wholesale 2.13 2.09 2.26 Unit Opex (Rmb/m3) Commercial 3.05 2.99 3.08 0.42 0.41 0.39 0.37 Average Selling Price 2.58 2.56 2.67 Average Procurem
Slide 10: Senior executives to join Shanghai Gas
Huang Dinan Dr Lee Ka-kit Chairman of Shenergy Chairman of Towngas Senior executives to join Shanghai Gas Board of Directors, Supervisory Board & Management Shenergy Group & Shanghai Gas senior management team discussing with Ni Bin, President of Shenergy & Zang Liang, President of Shanghai Gas,
Slide 11: 14.6M customers with Shanghai Gas
National Pipeline 6.4M + 14.6M customers Kitchen cabinets Space Heating Nanjing & appliances Wuhaogou, Jintan Gas Storage LNG Terminal Suzhou Wuhu Shanghai Gas Expected volume growth 15% National Yangshangang, and profit growth 10% Pipeline Hangzhou LNG Terminal 11
Slide 12: Upstream gas sourcing
Gas Volume (m3) Shale gas project in Sichuan to supply 200,000 tonnes of LNG 300M annually Towngas Group, Foran Energy, Shenzhen Gas jointly procuring 600M 420,000 tonnes of LNG per annum Towngas Group negotiating LNG long-term contract of 2M tonnes 2,800M 12
Slide 13: Distributed energy systems and heating
Contributing gas sales of 300 M m3 in 1H, expected 800M m3 for full year, unit margin Rmb 0.5/m3 Scope: District and individual household heating, steam and hot water supply for C&I customers Expand beyond city gas supply area; combine with other energies to provide high efficiency solutions
Slide 14: Carbon Peaking by 2030, Carbon Neutrality by 2060
Carbon Peaking by 2030, Carbon Neutrality by 2060 Reducing dependence on external energy, enhancing national energy & economic safety 2021.02 2021.03 2021.06 Policy Accelerate the development Build a power system County-wide promotion of a green & low-carbon with new energy as of distributed circula
Slide 15: Smart energy photovoltaics and storage
Energy Supply Side Power Grid Frontier Research Power Generation Power Grid Establish integrated Collaborate on integrated Renewable & gas-electric zero- Ecology Platform carbon smart energy energy management Smart Energy smart energy demonstration platform and other new technology application
Slide 16: Integrated Smart Energy ecology platform
Integrated Smart Energy “Smart City Brain” Carbon Management Carbon Trading Natural Gas Battery Charging Energy Network Carbon & Swapping Photovoltaics/ Wind Power Services User Smart Energy Energy Energy Energy Saving Multi-energy Ecology Platform Supply Production Supply SOFC Energy Efficiency Man
Slide 17: Our Edge
65% 35% 75% 25% (Non- (Industrial) （National Our Edge (Provincial Industrial) level) level） ＞5000+个 National Power Consumption Parks at provincial level or above 288 city-gas projects launched country-wide 7.5T kWh 2600+ Centralised operations & Average Per Industrial Park maintenance management
Slide 18: TERA-Award smart energy innovation competition
On 18 June, the first TERA-Award smart energy innovation competition was launched in Beijing & Hong Kong In search of innovative technology for “zero-carbon smart industrial park”, including integrated energy management, advanced energy storage, virtual power plant, smart energy platform, blockcha
Slide 19: Becoming Industry Leader
2021 2022 2025 Becoming Industry Leader 30 2 60 4 No. of Parks Expected Photovoltaic Establishing Key Building Own Model Installed Capacity (GW) 200 15 58 8.3 Capabilities Potential Investment Scale (Rmb billion) Park Establishment & Create 3 Source-Grid- Expected Revenue No. of Customers 80,000 Cli
Slide 20: Healthy Lifestyle Strategy
Healthy Lifestyle St r a t e g y Chronic Geriatric Illness Health Wearable Devices Rehab Health Nutritional Services Recipes Smart Nursing Vegetarian Hi-tech Kitchen Services Health Food & Care Home Family Products Plant-based Equipment Lifestyle Towngas Meat Gas Insurance Cosy Features Services Hom
Slide 21: Policy Direction and Our Extended Business
Encouraging better Policy Direction medical & health services New monopoly regulations Promoting urban on internet platform 15-minute companies giving us community-life Our business opportunities circle Extended Business Launching the Health Business Model Becoming a reliable family health lifestyle
Slide 22: Partnership with renowned brands
Pa r t n e r s h i p w i t h r e n o w n e d b r a n d s Health Content Health Ser vices Products Nutritional health On- & offline consultation, Nutrition & health products & solutions for specific from health checks to home services for special dietary needs dietitians dietary requirements Creating
Slide 23: Moment+ Community Health Lifestyle Experience Centre
Flagship store: Moment+ Community Health Lifestyle Experience Centre in operation at Qingdao 20 centres to be launched this year at key project companies Partnering with an insurance agency in Q4 to offer comprehensive scope of insurance service 1H 2021 2021 Outlet in Qingdao, Shandong Users (
Slide 24: 167 City Gas, 99 Smart Energy, Upstream
167 City Gas 3 Listed Company Shareholding 279 9 Provincial Capitals 29 Key Cities 99 Smart Energy 1 Upstream 4 Midstream Engineering 8 & Other Projects All Project Companies 24
Slide 25: Mt Sa
383 22 Mt Sa EY gn fama |
Slide 26: Share price performance
4 Jan: Closing price HK$3.45 30 Jun: Closing price HK$5.74 +66% HSI rose 4% during the same period 4/1/2021 30/6/2021 26
Slide 27: Coal to Gas, Photovoltaics, Tree Planting
Coal to Gas Photovoltaics Distributed Energy Systems Tree Planting 27
Slide 28: Gentle Breeze Movement charity campaign
“Gentle Breeze Movement“ Charity Campaign Family Harmony Supporting Frontline Building School Libraries Healthcare Workers 28
Slide 29: Safety
Risk Elimination Integrity Promotion Professionalism Safety 29
Slide 30: Pipe replacement and public safety investment
Invested Rmb2.8B in replacement of 3,100km of cast-iron pipes to ensure public safety Invested 2% of revenue in safety production equipment & facilities, training & promotion Public education on gas safety Education seminars to enhance public safety awareness 30
Slide 31: High ESG rating
1 2 High ESG rating "China Low-Carbon Model" Awarded by NewsChina AA- 31
Slide 32: Green mountains and clear waters
Green mountains & clear waters Peak carbon emissions are as good as by 2030 mountains of gold & silver Attain carbon neutrality by 2060 绿水青山就是金山银山 32
Slide 33: 14th 5-Year Plan: NG accelerates clean energy transition
Production 14th 5-Year Plan NG accelerates Sales Value Storage clean energy Chain transition Supply 33
Slide 34: Future development priorities
Smart energy Increasing upstream gas sources (PipeChina, LNG, Russian Gas) Extended business Cooperation with Shanghai Gas Steam & hot water market Hydrogen 34
Slide 35: Share Award Scheme and KPIs
• Share Award Scheme linked with Group performance & business growth KPIs: - Gas sales volume growth > 25% CAGR - Extended business growth > 30% CAGR … • Group to purchase scheme shares from the market to be granted to senior executives 35
Slide 36: Towards Carbon Neutrality
Towards Carbon Neutrality Aspire to be the Greenest Hong Kong based Company 36
Slide 37: Forward-looking statements disclaimer
This presentation and corresponding discussion may contain certain forward- looking statements, including statements regarding our intent, belief or current expectations with respect to Towngas China’s businesses and operations, market conditions, results of operation and financial condition, capita
Slide 38: @Ba2= D> m3
@Ba2= D> m3 lowngas reen Every Day
Towngas Smart Energy Company — H1 2021 Earnings Presentation on 6ix