Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — Towngas China Company — H1 2015 Earnings Presentation
15 slides from Towngas Smart Energy's earnings presentation, Aug 19, 2015
Slide 1: Towngas China 2015 Interim Results Presentation
Towngas China (1083.hk) 2015 Interim 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 62.15% • Major city-gas operator in Towngas China mainland China (1083.hk) 3
Slide 4: Territorial Coverage
Territorial Coverage As of July 31, 2015 Heilongjiang 3 projects added, total 99 projects in 18 provincial regions Jilin Liaoning Hebei Profile Inner Mongolia Beijing City-gas Shanxi Midstream 3 1 Shandong Shaanxi Jiangsu Refilling station Henan Anhui Hubei Other Sichuan 2 Chongqing Zhejiang New Pro
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 99 120 Injection from HKCG 100 New Acquired 3 10 Existing 80 14 8 5 60 6 8 96 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: Financial and Operational Performance
Financial and Operational Performance 6
Slide 7: 1H 2015 Results Highlights
1H 2015 Results Highlights Operating Profit After Tax ñ37% Gas Sales New Total Projects Total Customers Volume Connections ñ3% +3 +384,100 406,700 7
Slide 8: Results Highlights (Financial)
Results Highlights (Financial) (HK$Mn) 1H14 1H15 Change Turnover Gas Sales 3,030 3,212 +6% Connection Fees 645 719 +12% 3,675 3,931 +7% Operating Profit After Tax 468 639 +37% Profit attributable to 468 639 +37% shareholders Basic EPS (HK cents per share) 17.90 24.24 +35% 8
Slide 9: Growing Gas Sales Volume
Growing Gas Sales Volume (Bn m³) 1H14 1H15 Change Industrial 1.88 1.86 -1% Commercial 0.55 0.58 +5% Residential 0.87 0.96 +11% Total 3.30 3.39 +3% 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 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H14 1H15 9 *All JVs (100%)
Slide 10: Gas Sales Volume of JVs
Gas Sales Volume of JVs Volume (Mn m3) 1H14 1H15 Change Subsidiaries 867 899 +3.8% JCEs & Associates 1,747 1,790 +2.5% Chengdu JV 682 704 +3.2% Total 3,296 3,393 +3.0% Note: Chengdu JV with 13% shareholding is classified as financial investment 10
Slide 11: Operational Highlights
Operational Highlights Gas Sales Volume Mix (%) Productivity Customers No. (LHS) Residential Commercial Industrial Gas Volume/Employee (RHS) (Mn) (‘000 m³) 11 312 320 306 28% 26% 295 9 270 7 17% 57% 55% 245 17% 5 8.9 9.6 220 3 195 1H14 1H15 1 170 1H14 1H15 * All JVs (100%) 11
Slide 12: 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 13: High Speed Development of Supply Infrastructure
High Speed Development of Supply Infrastructure An Immense National Grid Heilongjiang Jilin Xinjiang Liaoning Beijing Inner Mongolia Hebei Ningxia Shanxi Qinghai Shandong Gansu Jiangsu NG Source Commissioning Year Capacity Shaanxi Henan West to East 1 18Bn m³ Anhui Sichuan Hubei West to East 2 30Bn
Slide 14: Outlook
Outlook ► Gas sales volume with mid growth in the medium term ► Development focus § Water heating and space heating potential, in particular in Northern China § Boilers & kilns in industrial application § Restaurants § Gas refilling stations ► Price reforms help NG remain competitive ► Environmental
Slide 15: THANK YOU
38M AIRC Towngas China Company Limited THANK YOU se a | |e 5 Eo fe % | * "al =a = NG LNG Crd } “a 5b
Towngas China Company — H1 2015 Earnings Presentation on 6ix