ENN Natural Gas Co., Ltd. Class A · SSE:600803
ENN Natural Gas Co., Ltd. Class A — H1 2022 Earnings Presentation
30 slides from ENN Natural Gas Co., Ltd. Class A's earnings presentation, August 2022
Slide 1: 2022 Interim Results
2022 Interim Results August 2022
Slide 2: Results Highlights
Results Highlights Total gas sales volume up 7.6% to 18,836 mil m³; Direct gas sales volume up 37.2% to 2,001 mil m³ 核心利润22.59亿元，同比大幅增长48.9% Core earnings amounted to RMB 2,259 mil with a significant increase of 48.9% The major asset reorganization of Zhoushan Terminal was duly accomplished 4.8 mil
Slide 3: Duly accomplishment of the major asset reorganization
Duly accomplishment of the major asset reorganization Zhoushan Terminal reorganization project was completed as the transfer of underlying assets and the issuance of new shares were settled after approval by the CSRC. After accomplishment of this reorganization, ENN-NG will be able to flexibly uti
Slide 4: Content
1.Results Review 2. Financial Highlights 3. Appendix
Slide 5: 1.1 Actively promoting the sustainable expansion of natural gas business
1.1 Actively promoting the sustainable expansion of natural gas business Enhanced contract management Total gas sales volume Direct gas sales and market-oriented pass through mil m3 to stabilize DM mil m3 2,001 37.2% • Implemented the contract mechanism and 18,836 conducted gas demand forecast and 7
Slide 6: 1.2 Rapid growth of direct gas sales business
1.2 Rapid growth of direct gas sales business Domestic gas resources International gas resources Gross profit of direct gas sales Stabilized the fundamentals of the three （RMB mil） major oil resources and strengthened Duly performed long-term contracts to deliver ecological cooperation in resour
Slide 7: 1.3 Laying out infrastructure to improve delivery capacity and resource synergy
1.3 Laying out infrastructure to improve delivery capacity and resource synergy Infrastructure capacity Operational performance in 1H22 Terminal Terminal • Zhoushan Terminal with an annual processing • 0.78 mil tons of processing capacity for capacity of 7.5 mil tons Zhoushan Terminal • Using PipeCh
Slide 8: 1.4 Low carbon business with first-mover advantages
1.4 Low carbon business with first-mover advantages With a focus on customers involving industry parks, factories, buildings and transportation, the company carried out product portfolio according to local conditions while prioritizing clean energy to provide low-carbon intelligent solutions with
Slide 9: 1.5 Exploring new channels of EPC business for high growth
1.5 Exploring new channels of EPC business for high growth Newly signed EPC contracts up to RMB 3 bil Laying out hydrogen energy technologies and core equipment providing full life-cycle service solutions 14 patented technologies and 39 hydrogen production projects RMB 1.3 bil Hydrogen • Cooperating
Slide 10: 1.6 Improving profitability of Energy production business
1.6 Improving profitability of Energy production business Leveraging the fulcrum of coal and methanol plants to develop the core competence of multi-energy supply by connecting the value chain of production, mining, transportation, storage and sales Coal sales vol (mil tons) 2.57 Acquired stable
Slide 11: 1.7 Continuously improving ESG performance
1.7 Continuously improving ESG performance Made active response to international ESG rating Released the Green Action 2030 report for the first time • Obtained BB rating by MSCI, identified 16 potential • First report by an A-share utility company indicators for score improvement and developed an to
Slide 12: 1.8 Digital intelligence transformation achieved remarkable results
1.8 Digital intelligence transformation achieved remarkable results Developed digital intelligence products with greatgas.cn Continuously expanded ecological links and Customer Resource awareness Digital intelligence industry solutions to other industry players awareness security • Expanded a safe d
Slide 13: Content
1. Business Overview 2.Financial Overview 3. Appendix
Slide 14: 2.1 High growth results
2.1 High growth results Unit: RMB mil 1H2022 1H2021 Change Total Revenue 73,0860 51,8270 41.0%0 Gross Profit 9,973 9,141 9.1% EBITDA* 9,251 8,509 8.7% Total Profit 5,859 7,031 -16.7%0 Net Profit Attributable to Parent 1,535 2,078 -26.1%0 Core Profit 2,259 1,517 48.9% Core EPS（RMB） 00.80 00.54 48.2%
Slide 15: 2.2 Core Profit
2.2 Core Profit Unit: RMB mil Main excluded items in the calculation of core profit 1H2022 1H2021 Net Profit Attributable to Parent 1,535 2,0780 Bad debts and asset impairment -13 30 Non-cash Changes in fair value of derivatives -124 159 factor Changes in FX gains and losses -536 336 Amortization of
Slide 16: 2.3 Analysis of the impact of exchange rate changes
2.3 Analysis of the impact of exchange rate changes Unit: RMB mil Changes in Non-cash impact USD/RMB Cash impact Non-cash impact attributable to exchange rate parent Sensitivity analysis ±1% ∓5 ∓145 ∓94 68% 32% FX Risk Management Repay the principal and interest of loans with income denominated in
Slide 17: 2.4 Revenue and gross profit breakdown
2.4 Revenue and gross profit breakdown 1H2022 Revenue breakdown 1H2022 Gross profit breakdown Energy Production 6% Integrated Energy & Value Added Integrated Energy & Value Added Energy Production 9% 10% 17% Construction & Installation 5% Construction & Installation Direct Gas Sales Retail & Wholesa
Slide 18: 2.5 Excellent financial management
2.5 Excellent financial management Accounts receivables and Turnover days (RMB mil) CAPEX (RMB mil) 5,815 3,135 3,919 234 4,202 155 210 344 584 332 14 days 16 days 2,891 2,304 1H2021 1H2022 1H2021 1H2022 Accounts receivables Turnover days Gas Retail & Whoesales IE M&A Energy Production 280.00 100.0%
Slide 19: 2.6 Abundant free cash flow
2.6 Abundant free cash flow The steady growth in our main business coupled with prudent financial management generated strong cash flow of RMB 2,348 mil which increased by RMB 321 mil excluding the impact of disposal of the Tengzhou project in 1H2021 Operating cash flow (RMB mil) Excellent returns
Slide 20: 2.7 Financial resources and liquidity
2.7 Financial resources and liquidity S&P assigned an initial investment rating of BBB- with stable outlook By Maturity Total Credit Facilities: By Currency RMB 67.5 bil 2% 21% 35% 29% 40% 60% 71% 42% hedged Within 1 yr 1-5yrs 5-10yrs 10yrs USD debt RMB debt Utilized Unutilized Credit ratings Aver
Slide 21: Content
1. Business Overview 2. Financial Overview 3.Appendix
Slide 22: Appendix 1. Company overview
Appendix 1. Company overview • ENN-NG (600803.SH), listed in 1994, is one of the largest private intelligent ecological operators in the natural gas industry in China. • The Company operates 254 city-gas projects nationwide with a total of 0.21 mil and 26.81 mil industrial and commercial customers a
Slide 23: Appendix 2. Intelligent ecological operator of natural gas industry
Appendix 2. Intelligent ecological operator of natural gas industry Build an industrial intelligent platform by relying on the accumulation of all scenarios of the natural gas industry, link the lower, middle and upper reaches by using digital technology, empower ecological partners by using smart
Slide 24: Appendix 3. Direct gas sales business model
Appendix 3. Direct gas sales business model Domestic International resources resources Realize the optimal solution of resource • Long-term contract • Pipeline gas allocation • Short to medium term • Unconventional gas contract • LNG plant • Spot Zhoushan Terminal and other third party window Domest
Slide 25: Appendix 4. Implementation plan for the acquisition of Zhoushan Terminal
Appendix 4. Implementation plan for the acquisition of Zhoushan Terminal Performance commitment Transaction plan period and amount （RMB mil） Period 2022 2023 2024 2025 • Underlying asset: 90% equity • Consideration: RMB 8.55 bil Amount 349.67 639.43 933.48 1196.43 • Payment method: 50% by shares + 5
Slide 26: Appendix 5. Details of long-term LNG contract
Appendix 5. Details of long-term LNG contract Contract vol Delivery No. Buyer Seller Tenor Gas resources Start year Index-linked （mil tons/year） method 1 ENN Energy Chevron 10 years 0.66 DES Global resources 2018 JCC 2 ENN Energy Total 10 years 0.50 DES Global resources 2018 JCC/HH 5+5 years Brent 3
Slide 27: Appendix 6. Rollout in hydrogen with first-mover advantages
Appendix 6. Rollout in hydrogen with first-mover advantages 14 Technology 39 Engineering Hydrogen blending in the pipeline 26
Slide 28: Appendix 7. Case studies of low-carbon industrial parks
Appendix 7. Case studies of low-carbon industrial parks Grasp the needs of park customers for carbon supervision, energy conservation and carbon reduction, and energy cost reduction, prioritize renewable energy, complement multiple energies, and integrate demand and supply to develop smart and low
Slide 29: Appendix 8. Comprehensive risk management to improve operational certainty
Appendix 8. Comprehensive risk management to improve operational certainty Market risk management physical markets risk Derivatives markets risk management management Make use of ETRM(Energy Trade and Develop data centers to connect to Empower the physical market department to Risk Management) syste
Slide 30: Disclaimer
Disclaimer The information provided to you in this presentation is for reference only and does not constitute or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of ENN-NG (“the Company”), nor shall it form the basis of, nor