Clp Holdings Limited · HKEX:2
Clp — FY2024 Earnings Presentation
39 slides from Clp's earnings presentation, Feb 24, 2025
Slide 1: 2024 Annual Results Highlights
CLP Holdings 2024 Annual Results Highlights 24 February 2025 1
Slide 2: Disclaimer
Disclaimer CLP Holdings Limited (the “Company”, together with its subsidiaries, the “Group”, or “we”, “our” or “us” as the context requires) is providing this document and making an oral presentation thereon (together, this presentation) for information only. We do not represent or warrant (expressl
Slide 3: Agenda
Agenda Overview Financial Performance and Outlook Strategy and Roadmap Appendices CLP Headquarters in Kai Tak, Hong Kong. 3
Slide 4: Overview
Overview CCGT D2 gas-fired generation unit at Black Point Power Station, Hong Kong. 4
Slide 5: 2024 highlights
2024 highlights Strong financial performance and material improvements from EnergyAustralia. Operational delivery on projects, and fleet contributing to supply reliability and energy transition. Delivering growth in decarbonising markets and securing future recurring earnings. Dividend growth of 1.6
Slide 6: 2024 highlights
2024 highlights Financial Highlights Operational Highlights Change Change Operating Earnings Safety & Customers (before Fair Value Movements) HK$10,949 million 8% Total recordable injury rate (2) 0.24 0.06 Unplanned customer minutes lost 6.02 min 0.04min Total earnings HK$11,742 million 76% in Hong
Slide 7: Financial Performance and Outlook
Financial Performance and Outlook Kwu Tung North Substation, Northern Metropolis, Hong Kong. 7
Slide 8: 2024 financial overview
2024 financial overview Strong financial performance with growth across key financial indicators Operating Earnings (1) EBITDAF (1) before Fair Value Movements Total Earnings HK$25,725 million 9% HK$10,949 million 8% HK$11,742 million 76% Capital Investment (2) Dividend Per Share (DPS) Fourth Interi
Slide 9: EBITDAF by business unit
EBITDAF by business unit Solid growth in EBITDAF with continuous contributions from Hong Kong and improved results from EnergyAustralia HK$M 2,171 (9%) 29,000 1,493 42 197 25,725 261 713 343 24,000 309 23,611 ( 37 ) 3,774 306 ( 237 ) ( 57 ) 2,307 2,856 19,000 3,118 14,000 Taiwan Region & Thailand Ap
Slide 10: Operating earnings by business unit
Operating earnings by business unit Delivered solid growth in earnings and improved results from EnergyAustralia HK$M 2024 2023 Change Hong Kong energy and related activities 8,895 8,823 1% Continued reliable performance and capital investments in new Development Plan cycle Mainland China 1,851 2,07
Slide 11: Hong Kong Operating Earnings
Hong Kong Continued reliable performance and capital investments in new Development Plan cycle to support growth 1% 10,000 8,823 389 8,895 8,000 (8) ( 144 ) ( 133 ) ( 32 ) Operating Earnings 6,000 (HK$M) 4,000 2,000 - 2023 FX Return on higher Lower performance Higher Others * 2024 fixed assets incen
Slide 12: Mainland China Operating Earnings
Mainland China Lower performance mainly due to lower nuclear contribution 2,400 2,073 10% 2,000 16 1,851 ( 10 ) ( 20 ) ( 12 ) 1,600 ( 196 ) 571 Operating Earnings 1,200 Renewables 800 1,671 (HK$M) Nuclear 400 Thermal - 5 (396) Corporate expenses (400) ^ & others 2023 FX Nuclear Renewables Thermal Ot
Slide 13: EnergyAustralia Operating Earnings
EnergyAustralia Material improvement led by delivery on generation assets and momentum in flexible capacity additions 6,000 424% EBITDAF 34 4,000 Customer EBITDAF 3,219 Energy EBITDAF 5,164 2,000 7 Enterprise EBITDAF Operating Earnings ( 1,705 ) ( 21 ) 591 (182) 2 ( 403 ) ( 326 ) Interest, tax, - (1
Slide 14: Apraava Energy Operating Earnings
Apraava Energy Executing profitable growth strategy 11% 400 40 20 329 301 Operating Earnings 300 (5) 36 85 Renewables 200 ( 63 ) 77 (HK$M) Transmission & AMI 100 120 Thermal - 63 (16) Group adjustment 2023 FX Renewables Transmission & Thermal Group adjustment 2024 Corporate expenses (100) AMI & corp
Slide 15: Taiwan Region and Thailand Operating Earnings
Taiwan Region and Thailand Lower generation at Ho-Ping coal and lower tariff at Lopburi solar 340 12% 307 290 (11 ) 260 Operating Earnings 240 (25 ) (6 ) (5 ) (HK$M) 190 Thermal 140 Solar 261 Corporate expenses 90 40 9 (10) (10) 2023 FX Thermal Solar Corporate expenses* 2024 * Mainly include develop
Slide 16: Cash inflows and outflows
Cash inflows and outflows Strong free cash flow to support growth and dividends HK$ billion 23.5 21.6 1.6 0.6 Cash inflows of HK$21.6b (2023: HK$23.5b) EBITDAF EBITDAF Proceeds from Healthy free cash flow with stable funds from operations supported 23.6 25.7 divestments 21.9 20.9 by underlying EBITD
Slide 17: Financial structure and liquidity
Financial structure and liquidity Sound balance sheet and low risk profile Net Debt Leverage Ratios Liquidity Position Net Debt / Total Capital Undrawn bank facilities Bank balances HK$56.3 billion 33.0% (31 Dec 2023: 31.6%) (31 Dec 2023: HK$52.3b) HK$31.0 billion HK$5.0 billion FFO / Net Debt (31 D
Slide 18: Strategy and Roadmap
Strategy and Roadmap Yixing solar located in Jiangsu Province, Mainland China. 18 18
Slide 19: Leading energy utility in Asia Pacific
Leading energy utility in Asia Pacific Present in 5 regions with Uniquely positioned and diversified Strong balance sheet and >22GW of generation across energy value chain dependable dividends distribution ~40 years of MAINLAND CHINA dependable total dividends* INDIA * Ordinary dividends adjusted fo
Slide 20: Strategy
Strategy Opportunities Electrification Energy Transition Strategic pillars for sustained growth Deliver on Climate Vision 2050 Growth in energy transition in Uplift and 59% reduction in GHG emissions Asia Pacific based on enhance intensity by 2030*, out of coal generation, networks, storage capabili
Slide 21: Foundational growth
Foundational growth Committed to our home market Hong Kong Regulated Business Committed investment (2024-2028) Customer & • Support the Hong Kong Government's policy priorities: Climate corp. services 3% Action Plan, new development and housing growth, economic development and new industries Generat
Slide 22: Energy transition & decarbonisation in Asia Pacific
Energy transition & decarbonisation in Asia Pacific Pursue investments aligned with our geographic and operational capabilities for dependable earnings growth India Non-Carbon Investments Targeted investment (Apraava Energy level) ~8GW • Continue target to triple non-carbon portfolio in the medium t
Slide 23: Uplift and enhance capability
Uplift and enhance capability A safe, future-ready workforce Refreshed values, new way of working culture Strategic workforce development Digital and data capability Operational excellence Digital fully embedded into our business Best-in-class assets and operations across energy value chain and dive
Slide 24: Capital allocation and funding strategy
Capital allocation and funding strategy Strong free cash flow generation Solid investment grade rating (S&P A, Moody’s A2) Sustained and committed growth capex in Hong Kong Enabling growth of ordinary dividends in line with underlying earnings Disciplined capital allocation Business models and partn
Slide 25: Appendices
Appendices The waste-to-energy project in West New Territories (WENT) Landfill, namely WE station, in Hong Kong. 25
Slide 26: Financial highlights
Financial highlights 2024 2023 Change Revenue (HK$M) 90,964 87,169 +4% Operating Earnings (before Fair Value Movements) (HK$M) 10,949 10,127 +8% Operating Earnings (HK$M) 11,648 12,252 -5% Total Earnings (HK$M) 11,742 6,655 +76% Operating Earnings per share (HK$) 4.61 4.85 -5% Total Earnings per sha
Slide 27: Operating highlights
Operating highlights 2024 2023 Change Safety (Total recordable injury rate) (1) 0.24 0.18 +0.06 Reliability in Hong Kong (minutes lost pa) (2) 6.02 5.98 +0.04 Customer accounts (Thousand) Hong Kong 2,830 2,790 +40 Australia 2,383 2,442 -59 Electricity sent out (TWh) (3) 79.8 79.5 +0.3% Generation an
Slide 28: Dividends
Dividends A history of returning cash to shareholders CLP Ordinary Dividend Per Share* (1987 – 2024) and Shareholding by Category (as at 31 December 2024) HK$ 3.50 33% 35% 3.10 3.10 3.10 3.10 3.15 Retail Interests 3.02 3.08 As at 2.91 3.00 investors associated with 2.80 31 Dec 2024 Kadoorie Family 2
Slide 29: Hong Kong – Growing business scale
Information Classification: Confidential Hong Kong – Growing business scale Generation Transmission Distribution Retail 9,399MW* > 17,100 km of transmission and 250 primary and > 15,700 36,125GWh sold and generation portfolio high voltage distribution lines secondary substations 2.830 million custom
Slide 30: Hong Kong – Electricity sales, earnings and capex
Hong Kong – Electricity sales, earnings and capex Electricity sales Capital expenditure (Accrual basis) GWh 2024 2023 Change Proportion HK$M 2024 2023 Change Residential 10,204 9,929 2.8% 28% CLP Power 8,010 6,759 18.5% Commercial 13,882 13,673 1.5% 39% CAPCO * 2,808 4,911 42.8% Infrastructure & Pub
Slide 31: Hong Kong – Tariff, reliability, fuel prices and environmental improvement
Hong Kong – Tariff, reliability, fuel prices and environmental improvement Low tariff Residential Tariff % Increase from Jan 2021 to Jan 2025 High reliability (FY2024) Unplanned customer minutes lost per year HK$/kWh London +57% 4.0 30 3.0 Singapore +38% 21 20 2.0 12 13 Sydney +24% 10 1.0 6.0* +19%
Slide 32: Hong Kong – Tariff, Energy Cost, Fuel Mix and Gas Volume
Hong Kong – Tariff, Energy Cost, Fuel Mix and Gas Volume Tariffs Energy Costs HK¢/kWh 160 HK$M 144.3 Average Net Tariff -5% 140 30,000 26,776 25,513 120 316 245 100 98.0 Basic Tariff 80 20,000 8,082 Others 8,316 60 46.3* Fuel Cost Adjustment Non-carbon 40 Gas 20 10,000 13,707 14,344 Special Rebate C
Slide 33: Decarbonising our operations
Decarbonising our operations CLP’s Past and Projected Greenhouse Gas Emissions Intensity Retired Retiredthree threegeneration generationunits unitsat at Castle Peak Power Station Castle Peak A1, A2 and A3 units were retired in 2024; A4 Castle PeakAAPower executed Power Station and an earlyStation an
Slide 34: CLP Group – Generation and energy storage portfolio (i) – 31 Dec 2024
CLP Group – Generation and energy storage portfolio(i) – 31 Dec 2024 17,893 Equity MW and 4,689 MW Long Term Purchase (total 22,582 MW) HONG KONG total 7,222 MW* ENERGYAUSTRALIA total 5,732 MW* Operational 7,222 MW* Operational 5,694 MW* Castle Peak – A & B (ii) 3,058 / 3,058* (c) Yallourn 1,480 / 1
Slide 35: CLP Group – Renewable generation portfolio (i) – 31 Dec 2024
CLP Group – Renewable generation portfolio(i) – 31 Dec 2024 3,739 Equity MW and 697 MW Long Term Purchase (total 4,436MW) - 19.6% of CLP total generation portfolio HONG KONG total 14 MW* MAINLAND CHINA APRAAVA ENERGY total 987 MW Operational 14 MW Under Construction 740 MW Operational 586 MW Wind 55
Slide 36: CLP Group – Generation and energy storage capacity (i) by fuel mix
CLP Group – Generation and energy storage capacity(i) by fuel mix 22,582 MW Attributable to CLP Group Operational Under construction Capacity by Total MW % MW % MW % Energy Type (a) + (b) (a) (b) Coal 8,140 36% 8,140 36% - - Gas 6,131 27% 6,093 27% 38 <1% Nuclear 2,685 12% 2,685 12% - - Wind 2,625 1
Slide 37: CLP Group – Energy sent out by asset type – 2024
CLP Group – Energy sent out(1) by asset type – 2024 TWh 35 CLP 2024 Generation 31.4 30.7 as Sent Out (1) 30 24.8 25.2 40% 25 41% 25% 25% 2024 20 17.6 16.5 2023 15 10% 10% 24% 25% 2023: 79.5 TWh 10 2024: 79.8 TWh 5.0 4.7 5 1.8 1.6 0 -5 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Hong Kong Mainl
Slide 38: Additional Resources
Additional Resources Scan or click on the QR codes to go to appropriate pages Annual Report Sustainability Report Climate Vision 2050 Introductory Pack 2024* 2024* 2024 Edition February 2025 Annual Results Presentation February 2025 * To be published in early March 2025. 38
Slide 39: Thank you
Thank you CLP@ re