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2007 Annual Results Presentation

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Presentation on theme: "2007 Annual Results Presentation"— Presentation transcript:

1 2007 Annual Results Presentation
HUANENG POWER INTERNATIONAL, INC. 华能国际电力股份有限公司 2007 Annual Results Presentation Hong Kong Mar 26, 2008 1

2 Contents Financial Highlights Business Performance Development Review
Energy Saving & Emission Reduction Opportunity & Challenge Strategic Planning Objectives for 2008 2 2

3 2007 Financial results prepared in accordance with IFRS
Financial Highlights Revenue (bn RMB) Increasing 12.34% YoY 49.768 Net Profit (bn RMB) Increasing 1.48% YoY 6.161 EPS (RMB) Increasing 2.0% YoY 0.51 Total Asset (bn RMB) Increasing 9.09% YoY Net Asset (bn RMB) Increasing 7.99% YoY 46.929 2007 Financial results prepared in accordance with IFRS 3 3

4 Business Performance Power Generation In 2007 the total power
generation on consolidated basis was bln kWh, up 13.21% over the previous year. Average utilization hours of coal-fired units was 5,656 hours, 340 hours higher than nation-wide average. 4 4

5 Business Performance (cont’d)
Fuel Cost Enhancing contract coal percentage, improving contract fulfillment, stabilizing sources of Coal supply Optimizing coal mix, improving coal quality, controlling purchase price Developing new coal sources, exploring overseas markets Unit fuel cost for 2007 up 10.04% 5 5

6 Business Performance (cont’d)
Average coal consumption rate for power generated g/kWh Average coal consumption rate for power sold g/kWh Average house consumption rate % Average equivalent availability 93.53% Average capacity factor % 6

7 Business Performance (cont’d)
Units Commissioned in 2007 Project Units commissioned in 2007 (totaling 5,000MW) Luohuang Phase III 1×600MW Yingkou Phase II 2×600MW Yuhuan Phase II 2×1000MW Qinbei Phase II 7 7

8 Business Performance (cont’d)
HPI Shenzhen Energy Jinling Power Plant Subscription Shares: 200 million shares Price per share: 7.60 RMB Acquired a 60% interest Being able to develop 2×1000MW Coal-fired Units 8

9 Business Performance (cont’d)
Types of Securities Date of Issuance Interest Rate Volume (bn RMB) Corporate Bond (5 years) Dec. 26, 2007 5.67% 1.0 (7 years) 5.75% 1.7 (10 years) 5.90% 3.3 The Company also issued 5 billion Yuan short-term bonds to lower financing cost 9

10 Development Review CAGR = 20.45% CAGR = 21.61% CAGR = 15.28%
10

11 Development Review (cont’d)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 EPS (Yuan) 0.33 0.36 0.47 0.61 0.68 0.91 0.45 0.40 0.50 0.51 DPS (Yuan) 0.08 0.09 0.22 0.30 0.34 0.25 0.28 The aggregate amount of cash dividend (07 excluded)paid out to shareholders by the company since 1998 totaled Rmb17.5 billion We will maintain a balanced, stable and proactive dividend policy and strive to enhance shareholders return 11 11

12 Energy Saving & Emission Reduction
As of December 31, 2007, 47 units were equipped with desulphurization facilities, equaling 51.5% of controlled capacity It is planned that by 2009, the Company’s entire coal fleet will be equipped with desulphurization facilities 12 12

13 Facilitate Faster Market Enhance Economic Efficiency
Opportunity & Challenge Opportunity Economic Growth Social Progress Improving Livelihood Deepening System Reform Economic Structure Adjustment Energy Saving Enforcement & Dispatch Provide Ample Room for Growth Facilitate Faster Market Share Expansion Optimize Generation Mix and Geographic Coverage Broaden biz Scope Achieve Scale of Economy Enhance Economic Efficiency and Strength 13

14 Opportunity & Challenge(cont’d)
Tight Coal Supply Surging Price Declining coal Quality Intensified Market Competition brings difficulties to performance enhancement Business Risk More Pronounced Due to Structural Incompatibilities & Inconsistencies in Power Sector Reform 14

15 Development Guideline
Strategic Planning Rationalizing overall arrangement, optimizing structure, adopting advanced technology, achieving energy saving & emission reduction, seeking cooperation and broadening biz scope Development Guideline Balancing the development and acquisition, greenfield and brownfield, coal power, hydro-power and alternative energy, domestic and international financing and resources Actively investing in coal power, ensuring coal supply, rapidly expanding generation capacity, enhancing coal supply capability Becoming a premier power company with superior strength and global vision, serving the needs of society by providing abundant, reliable and clean electricity, delivering long-term, Stable and increasing returns to its shareholders Objective 15

16 Strategic Planning (cont’d)
2010: Installed Capacity 60,000 MW Controllable Coal Supply 50 Mil t/a Coal Storage and Trans-shipment Capability at Ports 40 Mil t/a Coal Shipping Capability 30 Mil t/a 16

17 Strategic Planning (cont’d)
Optimizing structure and location, realizing scientific development Strengthening capital operation, broadening biz scope Extending coal-electricity industrial chain, realizing coordinated development Stepping up financial management, supporting rapid expansion Redoubling effort in energy saving and emission reduction, achieving clean development Enhancing technology, management and structural innovation, lifting core competitiveness Implementing the strategy of talent retention, improving enterprise cohesiveness and vitality 17

18 Utilization of Coal Units Unit Fuel Cost Increase
Objectives for 2008 2008: Power Generation 2008kWh Utilization of Coal Units 5757 hrs Unit Fuel Cost Increase around 18% New Commissioning 1880MW 18

19 Objectives for 2008 (cont’d)
HPI Huaneng Group 100% (100%) Sino-Sing Power 100% Tuas Power 19

20 Powering Tomorrow Thank You! 20


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