Enn Energy Holdings Limited · HKEX:2688
Enn Energy — H1 2024 Earnings Presentation
39 slides from Enn Energy's earnings presentation, Aug 23, 2024
Slide 1: 2024 Interim Results
2024 Interim Results Win-win Outcomes with Customers Growing Profit by Increasing Sales Volume Value Creation through Diverse Energy Products and Services 2024.8.23
Slide 2: Results Highlights
Results Highlights Core profit was RMB3,263 mil, Core profit from domestic businesses increased by 9.5% to RMB3,080 mil Retail gas sales volume increased by 4.5% YoY to 12,710 mil m3; The Group developed 7.26 mil m3 installed daily capacity for C/I customers, and 775,000 new residential households I
Slide 3: Digital Intelligence Application and Safety Management
Digital Intelligence Application and Safety Management ENN Energy has been deepening the specialized governance of its business practices, accelerating the iteration of safety intelligence capabilities, continuously consolidating the essential safety, and enhancing the safety capabilities of key r
Slide 4: Continuous Improvement in ESG Performance
Continuous Improvement in ESG Performance Enhancing Capabilities and Continuously Highly Recognized by Improving the Quality of ESG Disclosure Good Ratings Capital Market • Actively responded to the relevant Rating Score disclosure requirements of the ISSB and the Hong Kong Stock Exchange and took S
Slide 5: Contents: Financial Review
Contents 1. Financial Review 2. Business Overview
Slide 6: Steady Growth of Core Businesses
Steady Growth of Core Businesses Implementing the Group’s strategy, adopting intelligence to grow profit by increasing scales volume, creating value through multiple products, resulting in a 9.5% increase in core profit of domestic businesses RMB Mil Item 1H2024 1H2024 1H2023 Change Revenue 54,587
Slide 7: Improving Profitability, Poised to Unlock Customer Value's Growth Potential
Improving Profitability, Poised to Unlock Customer Value’s Growth Potential Proportion of gross profit from sustainable businesses such as natural gas sales, integrated energy, and value added business increased from 79% to 87%, further enhancing the stability and predictability of profits The c
Slide 8: Lowering Debt Level and Optimizing Debt Structure
Lowering Debt Level and Optimizing Debt Structure The credit ratings assigned to the company by S&P, Moody's, and Fitch, are BBB+(Stable)、Baa1(Stable)、BBB+(Stable), respectively Significantly decrease in interest-bearing liabilities (RMB Mil) Balanced Debt Maturity Profile (RMB Mil) Long-term Debt
Slide 9: Prudent Investment Strategy and Stable Financial Management
Prudent Investment Strategy and Stable Financial Management Steady growth of the core businesses as expected and the adherence to a prudent investment strategy has enabled the Company to obtain long-term and stable cash inflow, ensuring the Company’s sustainable development Capex Positive Free Cas
Slide 10: Contents: Business Overview
Contents 1. Financial Review 2. Business Overview
Slide 11: Stronger Fundamentals of Development with Continuous Growth in Natural Gas Business
Natural Gas Business IE Business VA Business Stronger Fundamentals of Development with Continuous Growth in Natural Gas Business In 1H2024, retail gas sales volume kept growing, further improving the profitability and achieving a 9.9% YoY increase in the gross profit of retail gas business Retail
Slide 12: Expanding Customer Scale Through Demand-driven Approach and Intelligent Matching
Natural Gas Business IE Business VA Business Expanding Customer Scale Through Demand-driven Approach and Intelligent Matching Centered around customer needs, expanded gas sales volume through intelligent resource matching, achieving a 4.5% growth in retail gas sales volume and a 5.4% growth in C/I
Slide 13: Capitalizing on the Policy of Rationalizing Gas Prices to Implement Cost Pass-through
Natural Gas Business IE Business VA Business Capitalizing on the Policy of Rationalizing Gas Prices to Implement Cost Pass-through Program Seizing the window of opportunity to implement the cost pass-through program, the cumulative completion rate for cost pass-through was approximately 59% of res
Slide 14: Utilizing Intelligence to Reduce Costs and Enhance Efficiency
Natural Gas Business IE Business VA Business Utilizing Intelligence to Reduce Costs and Enhance Efficiency Applied intelligence to achieve unmanned or minimal staffing operations in pipeline networks, plants and stations, implemented predictive maintenance for facilities, continuously improving th
Slide 15: Key Measures for Natural Gas Business in 2H2024
Natural Gas Business IE Business VA Business Key Measures for Natural Gas Business in 2H2024 To implement various key measures based on customer demand and industry trends and achieve the full year targets of the natural gas business To expand the scale continuously • Accelerate the conversion of
Slide 16: Practicing the Concept of Integrated Energy, Continuously Expanding IE Business
Natural Gas Business IE Business VA Business Practicing the Concept of Integrated Energy, Continuously Expanding IE Business In 1H2024, newly secured 707 projects; newly launched 36 key projects, with total no. of projects in operation reaching 332; realised IE sales volume of 19.74 bn kWh, up 26%
Slide 17: Developing IE Micro-grid in Batches to Support Rapid Business Development
Natural Gas Business IE Business VA Business Developing IE Micro-grid in Batches to Support Rapid Business Development Seizing the business opportunities, we focused on developing business centered around the IE micro-grid model and launched the “load-source-network-storage” one-stop solution Fact
Slide 18: Launching Business Targeting Factories and Buildings, Creating Value Through Diverse Products
Natural Gas Business IE Business VA Business Launching Business Targeting Factories and Buildings, Creating Value Through Diverse Products to Achieve a Win-win Cooperation with Customers Based on customers' needs, we precisely match our products and services to the production characteristics of fa
Slide 19: Optimizing Large-scale Industrial Park Business for Greater Value Creation
Natural Gas Business IE Business VA Business Optimizing Large-scale Industrial Park Business for Greater Value Creation Leveraging the advantages of synergy and aggregation formed among industrial park customers, gradually implementing the integration of “load-source-network-storage”, and expandin
Slide 20: Lean Operations to Enhance Operational Efficiency for IE Business
Natural Gas Business IE Business VA Business Lean Operations to Enhance Operational Efficiency for IE Business Keep improving the operational level of IE projects through key measures e.g. multi-dimensional sourcing, multi- measures for network management and multi-party efficiency enhancement Mul
Slide 21: Key Measures for IE Business in 2H2024
Natural Gas Business IE Business VA Business Key Measures for IE Business in 2H2024 To explore the IE micro-grid customer base continuously, penetrate into the end customers, create value across multiple products, and realise a full year growth rate of more than 20% in the scale of customer energy
Slide 22: Leveraging Intelligent and Innovative Services to Achieve Rapid Growth in VAB
Natural Gas Business IE Business VA Business Leveraging Intelligent and Innovative Services to Achieve Rapid Growth in VAB No. of VAB customers continued to increase, with revenue generated from each household reaching RMB325, achieving a 23% YoY increase in gross profit, including the contributio
Slide 23: Optimizing Products and Intelligent Upgrades to Meet Diverse Needs of Customers
Natural Gas Business IE Business VA Business Optimizing Products and Intelligent Upgrades to Meet Diverse Needs of Customers Expanding the scale of kitchen-based products and effectively increasing the market share Assessing customer demand and our strengths, providing a series of safety guard p
Slide 24: Unleashing the Value of Household Customers Through Platform-based Ecosystem
Natural Gas Business IE Business VA Business Unleashing the Value of Household Customers Through Platform-based Ecosystem Multi-channel expansion: integrate online and offline to increase customer stickiness; expand from existing markets to new regional markets to explore opportunities for value c
Slide 25: Key Measures for VAB in 2H2024
Natural Gas Business IE Business VA Business Key Measures for VAB in 2H2024 To continuously leverage the intelligent service system to enhance customer experience, expand product sales, aiming to achieve 20%+ growth in VAB for the full year To increase the sales of basic products Focus on key scen
Slide 26: 2024 Guidance
2024 Guidance Item 2024 Target IE sales volume 20%-30% VAB gross profit 20%-30% Retail gas sales volume +>5% Retail gas sales business gross profit +>10% New C/I development 12~14 mil m³/day New residential development 1.4~1.6 mil Capex Approx. RMB 8 bn Core profit from +>10% domestic basic business
Slide 27: Improving DPS and Payout Ratio to Reward Shareholders
Improving DPS and Payout Ratio to Reward Shareholders The Company declares an interim dividend of HK$0.65 per share, up by 1.6% YoY Based on the forecast of core profit and free cash flow, the Company plans to propose a dividend payout ratio of 44% for 2024 to the Board, with the core profit pay
Slide 28: Thank You
THANK YOU
Slide 29: ENN—To Become A Service Provider That Creates Multi-product Value For Customers
ENN—To Become A Service Provider That Creates Multi-product Value For Customers Based On Natural Gas By Using Intelligent And Innovative Services Company Profile Established in 1993, ENN is one of the leading private clean energy distributor in China ENN's principal business includes investment
Slide 30: Business Landscape
Business Landscape By the end of 2024, ENN Energy provided energy services to 30.54 mil Residential households and Heilongjiang 253 thousand C/I customers in 21 provinces, cities and autonomous regions. Inner Mongolia Liaoning 332 IE projects in operation Beijing Tianjin 72 IE projects under constru
Slide 31: ENN Energy Decarbonisation Action 2030
ENN ENERGY DECARBONISATION ACTION 2030 City Gas Business stone nian i tenapereet ENNENERGY DECARBONISATION ACTION 2030 PANORAMA BUILDING A LOW-CARBON SOCIETY Integrated Energy Business (IEB) ee saci é = 4 > 3 H 2 & 8 2 fal 2 Value Added Business Geven Hounehoicte @ENNAR ,,
Slide 32: Typical Industrial Park IE Project - Cash Flow Projection
Typical Industrial Park IE Project - Cash Flow Projection 1. Stable & Recurring Income • Integrated energy solutions reduce customers' overall energy bills by 10% • Selling the types of energy customer need increases their stickiness Cash flow break-even 2. Rapid Cash Flow Generation • Capex are inv
Slide 33: Simplified Model for a Typical City-gas Project
Simplified Model for a Typical City-gas Project Revenue/Cost Cash flow break-even Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Revenue Gas Usage Fee Connection Fee CAPEX Free Cash Flow Connection fee dominates in early years when the project companies are signing u
Slide 34: Gas Delivery Process
Gas Delivery Process Vehicle & ship gas users 34
Slide 35: IE Business Model
IE Business Model Multi-energy Coupling, Provide Load Source, Network And Storage Integrated Solutions Supply Network Heat Customer Hosting Services Load Energy Saving Boiler Charging Post Demand Response Gas Utilization Of Residual Energy Customer Demineralized Water Customer Pressure R
Slide 36: IE Business Logic
IE Business Logic Cooling, Heating, Electricity, Warming Different Installed Capacity Different Investment Amount Forecast Calculation Key Factor Customer Installed Investment Load Capacity Quota Macro- environment Affect Industrial Policy Practice Energy IRR Energy Optimization Calculation Energy K
Slide 37: Integrated Energy Micro Grids Promotes Business Upgrades
Integrated Energy Micro Grids Promotes Business Upgrades Single To Multiple Products Load-Source-Network-Storage Load And Storage Between Source And Network Small And Micro-industrial Parks Dye Tank Direct Combustion Innovative Gasbusiness Conversion, Cutting Gas Natural Gas Innovation Applications
Slide 38: Value Added Business: Linking Home, Community and Public Services Based on IoT
Value Added Business: Linking Home, Community and Public Services Based on IoT to Innovate Services and Products Intelligent Security Stove Innovative New Service Innovative Maintenance Concealed Piping Xiaoe E Smart Zhijia Home Smart Community Security Guard Appliance Upgrade Services Community Gua
Slide 39: Investors Relations Contact
Disclaimer: This presentation material and any oral discussions made in conjunction with the briefing are provided for your reference only. They may involve some forward-looking statements, including our intentions, beliefs, or current expectations regarding the business, operations, market conditio