ENN Natural Gas Co., Ltd. Class A · SSE:600803
ENN Natural Gas Co., Ltd. Class A — 9M 2022 Earnings Presentation
26 slides from ENN Natural Gas Co., Ltd. Class A's earnings presentation, October 2022
Slide 1: 9M 2022 Results Company Presentation
9M 2022 Results Company Presentation October 2022
Slide 2: Results Highlights
Results Highlights Retail gas sales volume up 4.4% to 18,832 mil m³ Gross Profit of direct gas sales amounted to RMB 1,136 mil with a significant increase of 100.7% Core earnings amounted to RMB 3,980 mil with a significant increase of 59.5% Responded to Sustainalytics ESG rating for the first time
Slide 3: Content
ge x. “7 1.Results Review 2. Financial Highlights 3. Appendix
Slide 4: Actively promoting the sustainable expansion of natural gas business
1.1 Actively promoting the sustainable expansion of natural gas business Ø The total gas sales volume reached 26,636 mil m3 in 9M 2022, and the volume growth of retail gas sales and direct gas sales was resilient Direct gas sales mil m3 DM of direct gas sales（RMB/m3） 5.2% 2,754 0.41 2,618 0.31 0.22
Slide 5: Rapid growth of direct gas sales business
1.2 Rapid growth of direct gas sales business Gross profit of direct gas sales Stable and diversified domestic resources （RMB mil） ü Stabilized the fundamentals of the three major oil 1,136 resources and strengthened ecological 100.7% cooperation in resource and facility exchange Favorable policies
Slide 6: Low carbon business with first-mover advantages
1.3 Low carbon business with first-mover advantages Ø Focusing on business scenarios such as industry parks, factories and buildings etc., the company integrates natural gas and renewable energy sources according to local conditions while prioritizing clean energy to provide low-carbon intelligent s
Slide 7: Exploring new channels of EPC business for high growth
1.4 Exploring new channels of EPC business for high growth Newly signed EPC contracts up to RMB 3.8 bil Laying out hydrogen energy technologies and core equipment and providing full life-cycle service solutions 14 patented technologies and 39 hydrogen production projects RMB 1.4 bil Hydrogen • Coope
Slide 8: Improving profitability of Energy production business
1.5 Improving profitability of Energy production business Ø 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) 3.93 ü Acquired stable
Slide 9: Continuously improving ESG performance
1.6 Continuously improving ESG performance Made active response to international ESG rating Released the Green Action 2030 report for the first time • First report by an A-share utility company • Listed in Hang Seng (China A) Corporate Sustainability Index, to systematically demonstrate the path to
Slide 10: Content
1. Business Overview 2.Financial Overview 3. Appendix
Slide 11: High growth results
2.1 High growth results Unit: RMB mil 9M2022 9M2021* Change Total Revenue 0106,68600 0079,644 34.0% Gross Profit 15,593 0013,647 14.3% EBITDA* 14,698 0012,451 18.1% Total Profit 09,441 0010,300 -8.3% Net Profit Attributable to Parent 03,159 0003,211 -1.6% Core Profit 03,980 0002,495 59.5% Core EPS（R
Slide 12: Core Profit
2.2 Core Profit Unit: RMB mil Main excluded items in the calculation of core profit 9M2022 9M2021 Net Profit Attributable to Parent 0003,159 0003,2110 Bad debts and asset impairment 00000-41 0000023 Non-cash factor Changes in fair value of derivatives 0000365 0000371 Changes in FX gains and losses 0
Slide 13: 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 Non-cash USD/RMB Cash impact attributable to impact parent exchange rate 18% Sensitivity analysis ±1% ∓ 6 ∓ 147 ∓ 93 82% FX Risk Management ü Repay the principal and interest of loans with income denominated
Slide 14: Excellent financial management
2.4 Excellent financial management Accounts receivables and Turnover days (RMB mil) CAPEX (RMB mil) 5,617 8,913 8,710 5,300 2,185 2,200 275 604 16 days 16… 6,453 5,906 9M2021 9M2022 9M2021 9M2022 Accounts receivables Turnover days Natural gas distribution Energy production Asset restructuring Total
Slide 15: Abundant free cash flow
2.5 Abundant free cash flow Ø The steady growth in our main business coupled with prudent financial management generated strong cash flow of RMB 3,685 mil(excluding the impact of the acquisition of Zhoushan terminal), with an increase of RMB 2,713 mil compared to the same period last year Operating
Slide 16: Financial resources and liquidity
2.6 Financial resources and liquidity By Maturity By Currency Total Credit Facilities: 4% RMB 7.95 bil 8% 23% 32% 42% 41% 50% 59% 41% hedged Within 1 yr 1-5yrs 5-10yrs 10yrs USD debt RMB debt HKD debt Utilized Unutilized Credit ratings 4% Average Effective Interest Rate Rating Agencies Ratings S&P B
Slide 17: Content
e Soocee’ , ogni °. Coogee’ ¢ BF ae ar oe 446 cae seer tat a - pen. f , + Vans ft ~ U oft s Guy on ¢ . s a ss ee 1. Business Overview 2. Financial Overview 3.Appendix
Slide 18: 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 19: Intelligent ecological operator of natural gas industry
Appendix 2. Intelligent ecological operator of natural gas industry Ø 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 20: 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 21: 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 22: 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 23: Rollout in hydrogen with first-mover advantages
Appendix 6. Rollout in hydrogen with first-mover advantages Hydrogen production from Industrial by-product hydrogen Hydrogen production from 14 patented fossil feedstocks Ø The coke oven gas hydrogen production water electrolysis Technology technology Ø China’s first large-scale natural gas technolo
Slide 24: Case studies of low-carbon industrial parks
Appendix 7. Case studies of low-carbon industrial parks Ø 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 25: 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 26: 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