Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — Towngas China Company — H1 2018 Earnings Presentation
18 slides from Towngas Smart Energy's earnings presentation, August 2018
Slide 1: Towngas China 2018 Interim Results Presentation
Towngas China (1083.hk) 2018 Interim Results Presentation
Slide 2: Forward-looking statements 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 development dif
Slide 3: Towngas China as a major city-gas platform in China
Towngas China as a major city-gas platform in China for Hong Kong & China Gas • Major utilities and energy Hong Kong & China Gas company in Hong Kong and (0003.hk) mainland China • A HSI constituent stock 67.45% • Major city-gas company in Towngas China mainland China (1083.hk) 3
Slide 4: 6 projects added, total in 19 provincial regions
As of 30 Jun 2018 6 project added, total 111 projects Heilongjiang in 19 provincial regions Jilin TCCL 6 New Projects Investment Liaoning City-gas 1. Liuzhou, Guangxi 广西柳州 100% Rmb79Mn Hebei 2. Jinan – Liaocheng pipeline, Shandong Inner Mongolia Beijing Midstream 69% Rmb104Mn 山東濟-聊線 Shanxi 5 3. Jiaw
Slide 5: Project count growth 2006-2018
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 25 37 40 47 61 66 74 87 97 102 104 105 111 120 Injection from HKCG 6 2 3 100 Newly Acquired 6 10 Existing 80 14 8 5 60 6 8 102 102 105 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
Slide 6: Financial and Operational Performance
Financial and Operational Performance 6
Slide 7: Profit from Project Companies
Profit from Project Companies 12% Gas Sales Volume Total Projects Total Customers New Connections (6 months) (6 months) 18% +6 +0.4Mn 431,989 7
Slide 8: 1H2018 financial results
(HK$ Mn) 1H2018 1H2017 Change Turnover Gas Sales & Others# 4,728 3,272 45% Connection Fees 856 764 12% 5,584 4,036 +38% Operating Profit From Project Companies 916 817 +12% Profit Attributable to Shareholders 663 602 +10% Basic EPS (HK cents per share) 23.96 22.21 +8% # Gas Dollar Margin (Rmb/m³) 20
Slide 9: Balance sheet, share data and credit ratings
TCCL (1083 HK) 30 Jun 31 Dec 20 Aug 31 Dec Change Change 2018 2017 2018 2017 HK$ Bn HK$ Bn Total assets 33.8 32.8 +3% Share price (HK$) 6.81 6.28 +8.4% Market cap. Net asset value 17.4 17.2 +1% 22.3 17.4 +10.1% (HK$ Bn) Cash and Bank 1.7 1.7 - No. of Shares 2.81 2.77 +1.4% Total borrowings 9.4 8.8 +
Slide 10: Gas Sales Volume (Bn m³)
(Bn m³) 1H17 1H18 Change Industrial 2.3 2.8 +23% Commercial 0.8 0.9 +11% Residential 1.1 1.3 +14% Total 4.2 4.9 +18% 8.4 8 7.1 7 6.5 6.6 5.9 6 Gas Sales Volume (Bn m³) 5.3 +18% 4.9 5 4.7 4.0 4 3.2 3 2.7 2.1 2 1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18 10 *All JVs (100%)
Slide 11: Gas sales volume by subsidiaries, JCEs and associates
Volume (Mn m3) 1H18 1H17 Change Subsidiaries 1,472 1,156 +25% JCEs & Associates 2,620 2,231 +18% Chengdu JV 858 800 +8% Total 4,949 4,186 +18% Note: Chengdu JV with 13% shareholding is classified as a financial investment 11
Slide 12: Gas Sales Volume Mix and Productivity
Gas Sales Volume Mix (%) Productivity Customers No. (LHS) Gas Volume/Employee (RHS) Residential Commercial Industrial (Mn) (‘000 m³) 6 419 450 400 5 26% 27% 322 350 4 300 3 250 54% 18% 56% 4.9 19% 4.2 200 2 150 1H17 1H18 - - 1H17 1H18 * All JVs (100%) 12
Slide 13: Customers gained in 1H 2018
TCCL 1H 2018 Annualized Volume Customers Gained (Mn m³) Commercial 4,650 120 Industrial 466 270 Total 5,116 390 13
Slide 14: Projects captured, in discussion and in operation
Captured in 1H2018 9 Projects New Projects in Discussion 40 Projects Number of Projects in Operation 12 Projects Gas Volume in 1H2018 70Mn m³ 14
Slide 15: China natural gas policy developments
► NDRC proposed new NG storage requirements to meet winter demand ► City-gate gas prices for Residential and Non-residential unified in June ► “Blue Sky” Policy ► LNG Terminals open access ► One National Natural Gas Grid Company ► Welcome investments on LNG importation 15
Slide 16: 13th 5-Year Plan natural gas demand outlook
The 13th 5-Year Plan 2017 2020 2030 NG in Energy Mix 7% 10% 15% Demand (Bn m³) 238 360 ~480 • 5 billion m³ Russian NG arrives in 4Q2019 & 38Bn m³ by 2024 North-Eastern 2017 2022E Shaanxi Volume (Bn m³) 1.4 3.8 Hubei Volume Growth CAGR: 22.9% Eastern South-Western Northern 2017 2022E Southern Volume
Slide 17: Target: 4-5 new projects per year
Heilongjiang Jilin 4-5 new projects / year Liaoning Hebei o Target: Inner Mongolia Beijing Shanxi Qinghai Shandong o Penetration into neighboring cities Jiangsu Shaanxi Henan Anhui Sichuan Hubei o Focusing on new territories Chongqing Zhejiang Hunan Jiangxi Fujian Guizhou Yunnan Guangdong Guangxi Ho
Slide 18: Thank you
3K MARCA) Expanding Towngas China Company Limited NEW HORIZONS k , * ._ Thank you 5d
Towngas China Company — H1 2018 Earnings Presentation on 6ix