Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — China Jinjiang Environment Holding Company — Q1 2018 Earnings Presentation
52 slides from Zheneng Jinjiang Environment's earnings presentation, April 2018
Slide 1: 1Q2018 Results Presentation
1Q2018 Results Presentation April 2018
Slide 2: Important Notice
Important Notice This document has been prepared by China Jinjiang Environment Holding Company Limited ( "Jinjiang Environment" or the "Company"), solely as presentation materials to be used by the Company’s management. It may contain projections and forward-looking statements that reflect the Compa
Slide 3: Contents
Contents 1. At a Glance 2. Financial Highlights 3. Operational Updates 4. Growth Strategy 5. Q&As 3
Slide 4: At a Glance
) BELA At a Glance
Slide 5: About Jinjiang Environment
About Jinjiang Environment Jinjiang Environment First mover and leader as well as the first private operator in the Waste-To-Energy (WTE) industry in the PRC Established PRC’s first WTE plant using Circulating Fluidised Bed (CFB) incineration technology in 1998 and built a track record of close
Slide 6: Business Overview: WTE Business
Business Overview WTE BUSINESS Description Scale and Capacity • Treatment of municipal solid waste and • 20 WTE facilities in 12 provinces, conversion into electricity with the following autonomous regions and centrally- revenue streams: administered municipalities in the PRC • Waste treatment (cont
Slide 7: Business Overview: EMC Business
Business Overview ENERGY MANAGEMENT CONTRACTING (EMC) BUSINESS Description Scale and Capacity • Started providing EMC services to • Current portfolio of 25 EMC projects, of Metallurgical, chemical and power which 20 have produced energy-saving generation companies since 2014 results • 25 technology
Slide 8: Business Overview: Revenue Breakdown
Business Overview Revenue Breakdown WTE business is the main revenue contributor As at 22 April 2018 (RMB million) WTE EMC 2,632 2,715 283 391 1,936 273 1,277 1,270 15 147 2,349 2,324 755 1,663 558 35 1,261 1,123 53 720 504 FY2013 FY2014 FY2015 FY2016 FY2017 1Q2017 1Q2018 For the financial year ende
Slide 9: Important Milestones
Important Milestones Established in 1998, Jinjiang Environment is the first and currently the largest 2015 Waste-To-Energy (WTE) operator (by treatment capacity) in the PRC. Completed expansion: Tianjin Sunrise and 2012 Wuhan Jinjiang WTE Facilities 2011 Completed Commenced: Suihua Green Energy
Slide 10: Capacity Growth Trajectory
Capacity Growth Trajectory Increase waste treatment capacity Achieve growth organically or through acquisitions Future waste treatment capacity and targets Annual Treatment Capacity (Tons) Total: 65,086 In preparation In construction In operation 20,456 Total: 49,630 7,950 Total: 31,280 Total: 2
Slide 11: Proposed Share Placement
Proposed Share Placement Details of Proposed Share Placement Subscriber Harvest Global Dynamic Fund SPC acting on behalf of and for the account of Harvest Environmental Investment Fund SP Issue Price S$0.50 Placement Shares 214 million new ordinary shares Net Proceeds Approximately S$106.9 million E
Slide 12: USD200 million Bond Issuance
USD200 million Bond Issuance Bond Issuance Details Format Reg S only Company‘s rating S&P: BB (Stable); Moody’s: Ba2 (Stable) Ranking Senior (unsecured) Coupon 6%, semi-annual payment Maturity 2020 Issue amount US$200 million Place of listing Singapore Exchange Sole global coordinator and bookrunner
Slide 13: Acquisition of Hangzhou Zhenghui
Acquisition of Hangzhou Zhenghui Acquisition Details Acquisition target 100% equity interest of Hangzhou Zhenghui Construction Engineering Co., Ltd. Consideration RMB15,976,700 (equivalent to approximately S$3,336,500) About Hangzhou Zhenghui Hangzhou Zhenghui is engaged in the provision of engine
Slide 14: Financial Highlights
Financial Highlights Qitaihe Green Energy WTE Facility黑龙江七台河 14
Slide 15: Significant Revenue Growth Achieved
Significant Revenue Growth Achieved Total Revenue (RMB Million) CAGR: 28.2% 35.4% 2,632 2,715 1,936 1,270 558 755 2014 2015 2016 2017 1Q2017 1Q2018 For the financial year ended 31 December For the quarter ended 31 March Higher revenue growth of 35.4% y-o-y recorded in 1Q2018 compared to 1Q2017 mainl
Slide 16: Significant Revenue Growth Achieved: Segment Revenue
Significant Revenue Growth Achieved Segment Revenue (RMB million) CAGR: 21.7% CAGR: 38.8% CAGR: 536.0% 1,621 1,768 3.7% 664.3% 34.7% 1,341 1,094 728 469 556 391 53 35 452 18 325 35 268 273 283 147 2014 2015 2016 2017 1Q2017 1Q2018 2014 2015 2016 2017 1Q2017 1Q2018 2014 2015 2016 2017 1Q2017 1Q2018 F
Slide 17: Stable Profitability: Gross Profit
Stable Profitability Gross Profit & Gross Profit Margin(1) （RMB million) 1,049 1,035 40.7 42.6 44.8 38.1 39.9 788 Gross Profit Gross Profit Margin 27.9 569 CAGR: 22.1% 11.4% 238 211 FY2014 FY2015 FY2016 FY2017 1Q2017 1Q2018 For the financial year ended 31 December For the quarter ended 31 March 1Q20
Slide 18: Stable Profitability: EBITDA
Stable Profitability EBITDA(1) & EBITDA Margin （RMB million) 58.5 49.6 51.2 54.2 52.0 1,306 1,389 EBITDA 1,008 EBITDA Margin 39.1 743 CAGR: 23.2% 2.3% 302 295 FY2014 FY2015 FY2016 FY2017 1Q2017 1Q2018 For the financial year ended 31 December For the quarter ended 31 March Note: (1) EBITDA = Profit b
Slide 19: Stable Profitability: Net Profit
Stable Profitability Net Attributable Profit & Profit Margin （RMB million) Net Profit 28.5 598 601 Net Profit Margin 22.9 22.9 444 22.7 22.1 361 13.4 CAGR: 18.6% 127 101 FY2014 FY2015 FY2016 FY2017 1Q2017 1Q2018 For the financial year ended 31 December For the quarter ended 31 March While gross prof
Slide 20: Healthy Capital Structure
Healthy Capital Structure Total Assets & Net Assets （RMB million） Total Assets 12,744 13,077 Net Assets 9,730 7,764 5,840 6,572 4,591 4,891 4,994 2,842 3,098 3,495 31 Dec 2013 31 Dec 2014 31 Dec 2015 31 Dec 2016 31 Dec 2017 31 Mar 2018 Interest-bearing Debt/Total Assets EBITDA/Interest Net Debt/EBIT
Slide 21: Strong Operating Cash Flow
Strong Operating Cash Flow （RMB million） Operating Cash Flow Cashflow adjusted for BOT Cashflow Yield Strong operating cashflow yield of 30.1% in LTM 31 Mar 18 38.8% 34.8% 30.1% 30.3% 1,230 22.6% 1,101 17.0% 958 953 638 717 590 502 537 523 338 320 2014 2015 2016 2017 LTM 31 Mar 17 LTM 31 Mar 18 For
Slide 22: Operational Analysis
Operational Analysis As at 22 April 2018 Electricity Supply (‘000 KWh) On-Grid Electricity (‘000 KWh) 17.5% 455,990 22.1% 624,910 355,433 515,379 1Q2017 1Q2018 1Q2017 1Q2018 Steam Supply (‘000 tonnes) Waste Treatment (‘000 tonnes) 778 2,227 31.2% 10.0% 2,005 593 1Q2017 1Q2018 1Q2017 1Q2018 In order
Slide 23: Rewarding Shareholders
Rewarding Shareholders Our Directors intend to declare dividends of not less than 50% 9.4% of our net profits attributable to Dividend our shareholders for FY2017 Yield Name of dividend Final Dividend type Cash Dividend amount per share (Singapore cents) 5.10 cents per ordinary share1 Dividend Yield
Slide 24: Operational Highlights
Operational Highlights 24
Slide 25: Strong Management Team
Strong Management Team > 20 years industry experience Executive President, China Environment Service Industry Association Vice President, China Association of Wang Yuanluo Circular Economy Non-Executive, Non- President, Zhejiang Provincial Independent Chairman Renewable Energy and Clean Date
Slide 26: Latest Debut in Latin America
Latest Debut in Latin America Brazil is one of the “BRIC Five Countries” with an annual waste output that reaches as high as 83 million tons 1 st High market potential for waste treatment Rising waste production levels and collection rates Current waste disposal method is landfill; no W T E fa
Slide 27: Extensive Portfolio in the PRC with Growing Overseas Footprint
Extensive Portfolio in the PRC with Growing Overseas Footprint Jinjiang Environment Total Capacity 65,086 tons/day Brazil Project No. of Project Capacity Projects Category 1 Preparation 825 tons/day Total 825 tons/day China Projects India Projects No. of projects Project Category Capacity No. of Pro
Slide 28: Our Extensive Footprint in China
Our Extensive Footprint in China Installed Capacity (ton/day) In Operation Under Preparation Under Construction or Expansion To cease per government policies Waste recycling projects Heilongjiang Suihua Green Energy BOO, 800 The most established Qitaihe Green Energy BOO, 1,000 Tonghe TBC, 600 Jilin
Slide 29: Latest Projects Secured in China
Latest Projects Secured in China Taigu WTE Facility (BOT) 500 Taigu, Shanxi tons/day Yan’an WTE Facility (BOT) 1,300 Hebei Shanxi Yan’an, Shaanxi tons/day Guye WTE Facility (BOO) 1,600 Shaanxi Hebei, Tangshan tons/day • 4 new projects secured in the second half of FY2017 in the PRC • Hebei, Shaanxi,
Slide 30: Building a presence in India
Building a presence in India Lucknow integrated waste management project Construction to begin in 1H2018 Location Lucknow City, the capital city of Uttar Pradesh Area 104 acres Gurgaon project (In Preparatory stage) Capacity 1,500 tons/day Business BOT model (Operational from April 2017; 30- Model y
Slide 31: Newly Secured Projects in Preparation
Newly Secured Projects in Preparation Designed Capacity Project Name Location Model Latest Progress (tons/day) Guye WTE Hebei, Tangshan 1,600 BOO TBC Facility Newly Secured Projects in Taigu WTE Taigu, Shanxi 500 BOT TBC Preparation Facility Yan’an WTE Yan’an, Shaanxi 1,300 BOT TBC Facility Wuhua WT
Slide 32: Construction & Expansion Updates
Status of Projects under Construction Designed Capacity Project Name Location Model Latest Progress (tons/day) Construction & Expansion Updates Zibo Linzi, Trial operations to 2,000 BOO New Energy Shandong commence by 2Q2018 Yinchuan Yinchuan, Trial operations to Zhongke 1,000 BOT Ningxia commence b
Slide 33: Overview of Projects in Preparation in China
Overview of Projects in Preparation in China Designed Capacity Project Name Location (tons/day) Model Yueyang Sunrise WTE Facility Yueyang, Hunan Province 1,200 BOO Baishan Green Energy WTE Facility Baishan, Jilin Province 1,000 BOO Linzhou Jiasheng WTE Facility Linzhou, Henan Province 1,000 BOT Yun
Slide 34: Upgrade of WTE Capacity
Upgrade of WTE Capacity Large-scale technical upgrading project involving some of CJE’s presently operating WTE facilities when completed will significantly expand WTE capacity, increase operational efficiency, reduce emission levels and proportion of coal used As at 31 March 2018, 8 WTE projects un
Slide 35: Growth Strategy
Growth Strategy Zibo New Energy WTE Facility淄博绿能新能源 35
Slide 36: In the future, we will …
In the future, we will … 2. Continuously improve technical 1. Maintain leading market position capabilities • Expanding waste treatment • Adopting advanced pre-treatment capacity of existing facilities technologies from Europe, in synergy • Through organic and inorganic with our own growth opportuni
Slide 37: Maintain Leading Market Position
In the future, we will … 1. Maintain Leading Market Position 3 main strategy pillars for capacity expansion and growth Increase the Enter under- capacity of Acquire underperforming facility penetrated waste with growth potential treatment in regions and introduce CFB • Management restructuring exist
Slide 38: Continuously improve technical capabilities
In the future, we will … 2. Continuously improve technical capabilities Introduce advanced pre-treatment technology from Europe, coupled with our own R&D Raise operating efficiency and reduce emissions at our WTE facilities Improve operational efficiency through Moving Grade Technology and its
Slide 39: Diversifying in the WTE value chain
In the future, we will … 3. Diversifying in the WTE value chain Expand the scope of WTE business to the relevant areas Further develop EMC and third-party project management business Potential diversification areas for WTE 1. Turning waste into resources 2. Sludge Treatment 3. Animal Carcass Tre
Slide 40: EMC
In the future, we will … EMC The contract energy management business is a useful complement to the waste incineration power generation business, which brings business and operational synergies and adds to the company's management experience and expertise in the energy sector EMC business has hig
Slide 41: Expand internationally
In the future, we will … 4. Expand internationally Seeking project opportunities from the ‘One Belt One Road’ Initiative Focusing on Asia and other developing countries Improve brand image and international reputation Market Development in Asia and other developing countries With the interna
Slide 42: Q&As
im 7 LIAS JINJIANG ENVIRONMENT 42
Slide 43: Appendix
@) LANG JINJIANG ENVIRONMENT 43
Slide 44: Strong Shareholding Structure
Strong Shareholding Structure Strong shareholder background provides firm support for company’s development(1) 63.29% Mr Dou Zhenggang Directors and Hangzhou Jinjiang employees Group(2) 0.39% 50.01% 49.99% China Green AEP Investments Other institutional Radec XIX Ltd and public investors Energy Limi
Slide 45: Overview of Operational Facilities
Overview of Operational Facilities Information updated as at 31 March 2018 Actual Total Total Installed Waste Electricity Estimated / Investment Percentage of Designed capacity as of Treatment Name of Project Project Constructed Supply Fee Actual Date Concession Amount Ownership by Treatment Latest
Slide 46: Overview of Operational Facilities
Overview of Operational Facilities Actual Percentage Installed Total Total Electricity Waste Estimated / of capacity as of Name of Project Project Investment Constructed Designed Supply Fee Treatment Fee Actual Date Concession Ownership Latest WTE Facility Location Model Amount or Acquired Treatment
Slide 47: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Percentage Total Installed Electricity Waste Project Estimated / Investment of Designed capacity as Supply Treatment Name of WTE Model Constructed or Actual Date Concession Project Location Amount Ownership Treatmen of Latest Fee Fee Facility (BOO/ Acq
Slide 48: Overview of Operational Facilities
Overview of Operational Facilities Actual Total Percentage Total Installed Electricity Waste Project Estimated / Investment of Designed capacity as Supply Treatment Name of WTE Model Constructed or Actual Date Concession Project Location Amount Ownership Treatment of Latest Fee Fee Facility (BOO/ Ac
Slide 49: China's WTE industry
China’s WTE industry Benefitting from New Policies More opportunities backed by major environmental protection laws and regulations issued to strengthen the incineration treatment of municipal waste The State Council's 13th Five-Year Plan eco- National Development and Reform Commission and the Minis
Slide 50: India's WTE Industry Outlook
India’s WTE Industry Outlook Overview of India’s WTE Market Currently, India's annual output of solid waste is 62 million tons, with 43 million tons per year to be collected, 11.9 million tons to be processed, and recycling rate of municipal solid waste at 75% -80%. The amount of waste generated
Slide 51: Brazil's WTE Industry Outlook
Brazil’s WTE Industry Outlook Overview of Brazil’s WTE Market Brazil has a total population of 206 million and is the 5th largest country in the world In 2015, Brazil generated approximately 83 million tons of MSW according to the Brazilian association of public cleaning and special waste (ABREL
Slide 52: Thank You
) BELA Thank You 52
China Jinjiang Environment Holding Company — Q1 2018 Earnings Presentation on 6ix