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CHINA GAS HOLDINGS LIMITED FY2013 ANNUAL RESULTS BRIEFING June 26, 2013.

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Presentation on theme: "CHINA GAS HOLDINGS LIMITED FY2013 ANNUAL RESULTS BRIEFING June 26, 2013."— Presentation transcript:

1 CHINA GAS HOLDINGS LIMITED FY2013 ANNUAL RESULTS BRIEFING June 26, 2013

2 A YEAR OF STRONG GROWTH 2 Gas volume up 21.6% to 7,014.2 million m 3 Revenue up 12.2% to HK$21,250.3 million Net profit attributable to owners of the Company of HK$1,764.3 million, up 84.9% from last year Earnings per share of HK39.37 cents, up 80.9% from last year Full year dividend of HK8.48 cents per share, an increase of 116.3% from last year 27 new concessions since 1 April 2012 bringing the total to 184 city gas concessions as at 15 June 2013 (not inclusive of 11 city concessions owned by Fortune Gas)

3 CONTENTS Operational Performance Financial Performance Guidance 3

4 OPERATIONAL PERFORMANCE – NATURAL GAS 4

5 PIPED GAS SALES VOLUME Total sales volume (million m 3 ) PeriodVolume Growth: Total FY1321.6% FY1225.0% PeriodVolume Growth: Natural Gas FY1322.7% FY1225.0% 5

6 NATURAL GAS SALES VOLUME: CUSTOMER BREAKDOWN Natural gas sales volume (million m 3 ) Customer Sales Volume Growth in FY13 % of Total Volume FY13FY12 Residential18.5%12.2%12.7% Industrial23.0%66.8%66.6% Commercial32.1%12.4%11.5% CNG Stations14.5%8.6%9.2% 6

7 NATURAL GAS CUSTOMER & TARIFF DATA Customer Growth FY13 Portfolio Total FY12 Portfolio Total Change from FY12 OrganicAcquired Residential1,225,86325,2348,438,9917,187,89417.4% Industrial51882,1551,62932.3% Commercial6,38920549,89543,30115.2% CNG Stations37–17013327.8% Customer Tariffs (ex-tax) (RMB / m 3 )FY13FY12 Change from FY12 Residential2.182.12+2.83% Industrial2.452.36+3.81% Commercial2.482.46+0.81% CNG Stations2.732.65+3.02% 7

8 OTHER OPERATIONAL DATA FY13FY12Change from FY12 Residential Connection Fee (RMB per customer) 2,5502,4733.1% Urban Population Covered (million)65.762.55.1% Household Penetration Rate42.0%37.4%12.3% Total Intermediate & Main Pipelines (km)37,40833,50511.6% 8

9 NEW CITY CONCESSIONS WON 27 new concessions since 1 st April 2012 bringing the total to 184 city gas concessions as at 15 June 2013 (not inclusive of 11 city concessions owned by Fortune Gas) New concessions won in Liaoning, Heilongjiang, Hubei, Inner Mongolia, etc. Focus on industrial cities and customers, high volume users More concessions, largest portfolio in China 9

10 POLICY ENVIRONMENT In Oct. 2012, NDRC issued the natural gas application policy, promoting the use of natural gas (CNG/LNG) for vehicles and vessels The PRC’s “12 th Five-Year Plan” for energy development published in Jan. 2013 indicates natural gas supply in China will surpass 260 billion m 3 by 2015, increasing by 20% per year. Strong government support 10

11 NATURAL GAS PROJECT LOCATIONS 11

12 OPERATIONAL PERFORMANCE – LPG 12

13 LPG: DOWNSTREAM RETAIL FOCUS FY13FY12 Sales Volume (tonnes)889,342894,000 Gross Margin (%)5.7%5.5% Operating Margin (%)-0.2%1.0% Largest downstream retailer of LPG in China (via 49% owned Panva Gas) Shifting the LPG focus from wholesale to downstream business to improve overall profitability and cost efficiency 13

14 14

15 FINANCIAL PERFORMANCE 15

16 FINANCIAL SUMMARY – INCOME STATEMENT HK$ millionsFY13% changeFY12 Revenue21,250.3 12.2% 18,933.6 Piped Gas Sales9,348.9 22.0% 7,662.5 Connection Fees3,300.7 17.7% 2,803.7 LPG Sales7,959.2 -0.4% 7,992.8 Others641.4 35.2% 474.5 Gross profit4,374.0 21.3% 3,605.7 Profit after tax2,041.3 78.8% 1,141.9 Net profit attributable to shareholders of the Company 1,764.384.9%953.9 Basic EPS (HK cents)39.3780.9%21.76 Basic DPS (HK cents, full year)8.48116.3%3.92 Dividend payout ratio21.5%+3.5%pts18.0% 16

17 FINANCIAL SUMMARY – BALANCE SHEET HK$ millionsFY13FY12 Total Assets 35,367.631,874.4 Total Equity 12,836.710,799.0 Shareholder's Equity 11,484.69,742.2 Cash 4,948.85,528.2 Short-term Bank Debt 9,082.18,963.4 Of which LPG trade finance related facilities 4,805.35,097.6 Long-term Bank Debt 6,862.76,406.8 Net Gearing Ratio* 48%44% * Net gearing ratio is computed based on total net borrowings (total borrowings less cash and trade finances in relation to LPG business) as a percentage of net assets 17

18 FINANCIAL SUMMARY – MARGINS FY13FY12 EBIT Margin15.2%13.5% EBITDA Margin18.7%16.7% Net Profit Margin9.6%6.0% Return on Equity15.4%9.8% 18

19 FY2014 – 2015 GUIDANCE 19

20 FY2014 - 2015 Guidance Enhance organic growth in existing city gas projects Increase industrial and commercial customer connections as upstream supplies increase Expand “Hub-Satellite City” investment program to add more concessions to our portfolio Expedite the rollout of CNG and LNG stations for vehicles and vessels Focus on higher margin retail LPG distribution For the year ended March 31FY2014FY2015 Total piped gas volume (m 3 )8.5 bn10 bn New residential connections1.3 m CNG stations370600 Downstream LPG sales (including Panva Gas)900,000 tons1.1m tons 20

21 DISCLAIMER 21 Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. All the directors of China Gas jointly and severally accept full responsibility for the accuracy of the information contained in these materials and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in these materials have been arrived at after due and careful consideration and there are no other facts not contained in these materials, the omission of which would make any statement in these materials misleading. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.


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