Economic Challenges - In 2022, the company faced significant challenges due to the COVID-19 pandemic and the energy crisis caused by the Ukraine war, impacting commodity prices[2]. - The operating profit decreased by HKD 2,291 million to HKD 7,560 million, primarily due to operational challenges in the Australian power generation segment[15]. - The net cash inflow from operating activities decreased by 28.5% to HKD 12,734 million[16]. - The total assets as of December 31 were HKD 236,026 million, a decrease of 1.6% from the previous year[16]. - The company reported a total profit of HKD 924 million, significantly down from the previous year due to unrealized fair value losses[15]. - EnergyAustralia faced operational issues in 2022, leading to significant financial impacts, and plans to initiate major maintenance at Yallourn Power Station in 2023-2024[39]. - The company recorded a loss of HKD 185 million from the sale of its 70% stake in the Fangchenggang Power Plant, one of the most efficient coal power projects in mainland China[122]. Financial Performance - Total revenue increased by 19.9% to HKD 100,662 million, with Hong Kong power business revenue rising by 14.2% to HKD 50,600 million and revenue from outside Hong Kong increasing by 25.5% to HKD 48,873 million[16]. - Total profit reached HKD 924 million, with operating profit at HKD 4,623 million, and total dividends of HKD 7,832 million[22]. - The company maintained its dividend at the same level as 2021, reflecting a commitment to shareholder returns[15]. - The company’s credit ratings were confirmed as stable by S&P and Moody's, with ratings of A and A2 for the company and its subsidiaries[94]. - The group maintained a strong financial position with a debt ratio of 52% for fixed-rate debt excluding perpetual capital securities, and 55% including them[183]. - The group achieved a refinancing of non-recourse project loans totaling RMB 1.1 billion (HKD 1.2 billion) for four renewable energy projects, enhancing their economic value[183]. Sustainability and ESG Commitment - The company reported a commitment to ESG performance, aligning with regulatory frameworks such as the Hong Kong Stock Exchange's Listing Rules and GRI standards[2]. - The company emphasized the importance of sustainable development, releasing a separate Climate-Related Disclosure Report detailing its climate actions and commitments[2]. - The company aims to enhance its sustainable business portfolio and enhance resilience against climate change[19]. - The company is committed to digital transformation and decarbonization as key trends driving future opportunities in the energy sector[9]. - The dual materiality concept is adopted to assess both financial impacts and significant issues affecting humanity, the environment, and the economy[54]. - The company has optimized its dual materiality assessment process to better identify and evaluate ESG risks and opportunities[55]. - The total greenhouse gas emissions (Scope 1, 2, and 3) of the company decreased by 7.4% year-on-year to 60,223 kilotons of CO2 equivalent (kt CO2e) in 2022[171]. - The company plans to fully phase out coal-fired power generation by 2040 as part of its Climate Vision 2050 initiative[173]. Renewable Energy Initiatives - The company is focused on developing clean energy and customer-centric energy solutions in India through its Apraava Energy brand[13]. - Renewable energy generation capacity was 3,611 MW, slightly down from 3,624 MW in 2021[22]. - The renewable energy projects and nuclear power investments in mainland China showed strong performance, with three projects totaling 280 MW under construction[38]. - The company plans to focus on developing new renewable energy projects that are cost-competitive and contribute to local energy supply security[46]. - The total installed capacity of renewable energy projects reached 1,010.3 MW, with a generation output of 2,146 million kWh in 2022, up from 1,893 million kWh in 2021[124]. - The company is exploring offshore wind farm construction in Hong Kong and enhancing cross-border clean energy transmission systems[178]. Operational Improvements and Technology Investments - The company is investing in technology to improve operational performance and customer experience[21]. - The company aims to enhance its technology capabilities and develop an integrated energy service business model[34]. - The company is collaborating with universities and research institutions to conduct in-depth energy analysis for high-energy-consuming sectors like hospitals and data centers[200]. - The company is developing two new battery storage projects in New South Wales in collaboration with Edify Energy, aiming to support the transition to clean energy[47]. - The company signed a memorandum of understanding with the Shenzhen Longhua District People's Government for energy digitalization[24]. Customer Engagement and Service Reliability - The company aims to enhance its service reliability, providing power to over 2.75 million customers in Hong Kong with a reliability rate exceeding 99.997%[10]. - The reliability of power supply in Hong Kong was 99.997%, a decrease from 99.999% in 2021[23]. - The company connected over 1.78 million smart meters for customers in Hong Kong since 2018[27]. - Over 60% of common customer service requests were processed through electronic channels, a significant increase from 7% in 2018, with a target to raise this figure to over 80% in the coming years[107]. - The company provided a special rebate of HKD 715 million to alleviate customer burdens in 2022[97]. Strategic Partnerships and Collaborations - The company is collaborating with DBS Bank to provide energy management solutions to help businesses achieve sustainability goals and access sustainable financing[109]. - The company has received over 500 government funding applications for electric vehicle charging infrastructure, completing about 96% of preliminary assessments by the end of 2022[110]. - CLP Power has established a joint venture with Qingdao Tairui Electric Co., Ltd. to invest in electric vehicle charging infrastructure in the Greater Bay Area, focusing on Shenzhen, Dongguan, and Zhuhai[126]. - The company is exploring pilot projects with Israeli firm Hydro X, focusing on innovative hydrogen storage technology to reduce carbon emissions in the power sector[180]. Future Outlook and Growth Strategies - The company plans to expand its operations in Hong Kong, with a capital expenditure and investment growth strategy for 2024-2028[4]. - The company aims to strategically invest in growth opportunities while focusing on carbon reduction and sustainable energy solutions in Hong Kong and mainland China[42]. - The company plans to continue its focus on capital investments and market expansion strategies in the coming years[76]. - The company is prepared to invest in and implement more integrated energy service projects to shape the future of new energy in mainland China[127].

CLP Holdings 2022 Annual Results Presentation 27 February 2023 Energy for Brighter Tomorrows Disclaimer 1 Potential investors, analysts and shareholders of CLP Holdings Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you may not forward, publish, distribute, release or disseminate any part of the presentation directly or indirectly to any ...

Financial Data and Key Metrics Changes - CLP Holdings reported a steady growth in earnings in core markets, with earnings of HKD10.9 billion, an 8% increase from 2021. However, the overall performance was impacted by EnergyAustralia's operating loss and unrealized accounting fair value movements, leading to a 23% reduction in operating earnings to HKD7.6 billion before fair value loss adjustments [11][12][15] - After factoring in the unrealized fair value loss, operating earnings were HKD4.6 billion, a 51% decrease compared to 2021 [12][18] - The Board approved a fourth interim dividend of HKD1.21 per share, maintaining the total dividend for 2022 at HKD3.10 per share, yielding 5.4% based on year-end closing share price [12][44] Business Line Data and Key Metrics Changes - In Hong Kong, the ACOI slightly increased due to ongoing investments in electricity infrastructure, with capital expenditure of HKD12.6 billion, a 12% increase from 2021 [22][23] - Mainland China achieved an ACOI of HKD2.8 billion, a 38% increase from the low point of 2021, driven by strong performance in nuclear and renewable energy [27][28] - EnergyAustralia faced significant challenges, reporting an ACOI of minus HKD3.1 billion due to high wholesale prices and low utilization rates of coal plants [31][32] Market Data and Key Metrics Changes - The energy market in Australia experienced extreme volatility, with high wholesale prices impacting profitability and leading to a suspension of the national electricity market [31][36] - Forward prices in Australia have shown signs of recovery, with expectations of improved margins and earnings in 2023 and 2024 [36][37] Company Strategy and Development Direction - The company aims to invest in a diverse mix of carbon-free assets, decarbonize operations, and enhance capabilities to support growth in a transitioning energy landscape [49][50] - In Hong Kong, the company is prepared to support government plans for economic growth and infrastructure development, while ensuring reliable and cost-effective power delivery [51][52] - In Mainland China, the focus is on expanding renewable energy investments and capturing growth opportunities in the Greater Bay Area [56][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the Russia-Ukraine conflict, inflation, and rising interest rates, emphasizing the need for reliable, affordable, and cleaner energy [4][5][6] - The company remains positive about long-term prospects in Mainland China, driven by government commitments to carbon neutrality and increasing demand for green products [30][58] Other Important Information - Free cash flow decreased to HKD11.1 billion from HKD16.8 billion in 2021, primarily due to lower funds from operations in Australia and unfavorable working capital movements [41][42] - Net debt increased to HKD54.9 billion, with a net debt to total capital ratio of 32%, influenced by temporary cash deposits in Australia and accelerated capital expenditures [45][46] Q&A Session Summary Question: Anticipated development plan in Hong Kong - Management is in discussions with the government regarding the 2024-2028 development plan, which will include projects related to the Northern Metropolis and decarbonization efforts [65] Question: EnergyAustralia's negative free cash flow outlook - Management indicated that improvements in cash flow are expected as margin deposits roll off and operational reliability is enhanced [72][73] Question: Plans for coal-fired plants in China - Management confirmed plans to progressively close legacy coal plants by 2030, replacing them with investments in renewable energy and nuclear power [82] Question: Dividend policy and future hikes - The Board aims for a flat or growing dividend, with future increases dependent on the recovery pace in Australia [88] Question: Coal supply contract for Mount Piper - Management has negotiated alternative coal supply arrangements to improve reliability and utilization at Mount Piper [86]

Financial Performance - The group's operating profit decreased by 25.4% to HKD 4,111 million, primarily due to a decline in profitability from the Australian power generation portfolio and high coal prices[4]. - The total revenue for the first six months was HKD 47,594 million, an increase of 16.9% compared to HKD 40,729 million in the same period last year[4]. - The total loss for the period amounted to HKD 4,855 million, compared to a profit of HKD 4,615 million in the same period last year[4]. - The company reported a loss attributable to shareholders of HKD 4,855 million, compared to a profit of HKD 4,615 million in the same period last year[23]. - The operating profit before fair value adjustments was HKD 4,111 million, down HKD 1,397 million or 25.4% from HKD 5,508 million in the previous year[23]. - The consolidated EBITDAF for 2022 was HKD 10,844 million, a decrease of HKD 2,109 million (19.4%) compared to 2021[26]. - The company reported a significant increase in revenue from the Hong Kong segment, totaling HKD 22,878 million[131]. - The company reported a net loss of HKD 4,855 million for the first half of 2022, compared to a profit of HKD 4,615 million in the same period of 2021[117]. Dividends and Shareholder Returns - The company maintained an interim dividend of HKD 0.63 per share, consistent with the previous year, reflecting confidence in its business strategy[8]. - The interim dividend declared for the first half of 2022 was HKD 0.63 per share, totaling HKD 1,592 million, consistent with the dividend declared in 2021[137]. Operational Developments - The company is advancing the construction of a new 600 MW combined cycle gas turbine unit at the Lung Kwu Tan Power Station, expected to be operational in 2023[9]. - The company is conducting geotechnical surveys for a proposed offshore wind farm project in Hong Kong, which could become its first offshore wind farm[9]. - The company is deepening its partnership with Edify Energy to build two new battery storage projects in New South Wales, expected to be completed by the end of 2023, promoting renewable energy integration in Australia[10]. - The company is committed to exploring sustainable business opportunities through strategic partnerships while maintaining rigorous capital discipline[10]. Market and Regional Performance - In mainland China, the profit of several thermal power projects was impacted by rising coal prices, while nuclear power operations remained stable with increased generation from Daya Bay and Yangjiang nuclear power stations[10]. - Revenue from Australia increased by HKD 4,126 million or 24.0% to HKD 21,303 million, despite a negative impact of approximately HKD 1,100 million from the average depreciation of the Australian dollar[24]. - The company noted an increase in electricity generation from the Yangjiang Nuclear Power Station and stable operations at the Daya Bay Nuclear Power Station[26]. - The company is focusing on developing a business model that combines energy infrastructure and services to meet the growing demand for smarter and cleaner energy solutions in the Greater Bay Area[55]. Financial Position and Liquidity - The total assets at the end of the reporting period were HKD 260,522 million, with total borrowings of HKD 62,584 million[4]. - The net debt as of June 30, 2022, was HKD 58,924 million, an increase of 18.0% from HKD 49,955 million in the previous year[29]. - The group maintained a strong liquidity position with HKD 19.5 billion in undrawn bank loan facilities and HKD 3.7 billion in bank balances as of June 30[36]. - The group has arranged multiple new loan facilities to maintain a strong financial position amid liquidity challenges[121]. Challenges and Risks - The group reported a negative operating cash flow of HKD 3.4 billion for the first half of 2022, compared to HKD 6.1 billion in the same period of 2021[35]. - EnergyAustralia faced significant operational challenges due to unprecedented conditions in the Australian energy market, with electricity prices increasing over threefold amid tight supply and high fuel costs[57]. - The company experienced a significant decrease in contributions from its energy business in Australia due to falling realized prices[27]. Sustainability and Community Engagement - The company aims to achieve net-zero greenhouse gas emissions across its entire value chain by the end of 2050, with new science-based targets set for 2030[75]. - The company is committed to improving community welfare, supporting education and youth development, and enhancing environmental protection through stakeholder engagement[78]. - CLP Holdings donated HKD 2 million to support community pandemic efforts, providing personal protective equipment for volunteers[79]. Governance and Compliance - The company’s governance practices exceed the principles outlined in the corporate governance code, with full compliance reported as of June 30, 2022[89]. - The company confirmed compliance with the "Standard Code" and its own "Securities Trading Code" throughout the period from January 1 to June 30, 2022[101]. - The company’s board composition remained unchanged as of June 30, 2022, with a high approval rate of over 99.61% for the reappointment of the independent auditor[90].

CLP Holdings 2022 Interim Results Presentation Energy for Brighter Tomorrows Disclaimer 1 Potential investors, analysts and shareholders of CLP Holdings Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you may not forward, publish, distribute, release or disseminate any part of the presentation directly or indirectly to any other person. I ...

CLP Holdings Limited (OTCPK:CLPHY) Q2 2022 Earnings Conference Call August 8, 2022 3:45 AM ET Company Participants Marissa Wong - Director of Investor Relations Richard Lancaster - Chief Executive Officer Nicolas Tissot - Chief Financial Officer Conference Call Participants Evan Lee - HSBC Ken Liu - UBS Marissa Wong Good afternoon everybody and welcome to CLPÂ's 2022 Interim Results Briefing. IÂ'm Marissa Wong, Director of Investor Relations. And I am your host today. Which will be delivered today by CLP Ho ...

Sustainable Development and Climate Goals - CLP Holdings reported a focus on sustainable development as an integral part of its business strategy, celebrating its 120th anniversary in 2021[2]. - The company is committed to carbon reduction actions under the "Climate Vision 2050" initiative, addressing the impact of the Omicron variant on business units and future dividend policies[9]. - The report emphasizes a dual materiality approach, focusing on ESG topics that could create or diminish corporate value, while also addressing broader impacts on humanity, the environment, and the economy[3]. - The company is committed to achieving net-zero emissions and enhancing community resilience in response to climate change[26]. - The company committed to achieving net-zero emissions by the end of 2050 and aims to phase out coal-fired power generation by 2040, ten years earlier than previously planned[33]. - The company is committed to achieving net-zero greenhouse gas emissions by 2050, with interim targets of reducing greenhouse gas emissions intensity by 84% by 2030 and 52% by 2040 from 2019 levels[45]. - The company has revised its "Climate Vision 2050" to set more aggressive targets and accelerate the phase-out of coal-fired power generation[41]. - The company emphasizes the importance of collaboration with local governments and business partners to achieve climate goals and implement feasible decarbonization plans[38]. - The company aims to enhance operational capabilities and adapt to market needs while supporting carbon neutrality goals in Hong Kong[98]. - The company is committed to supporting the sustainable development of Hong Kong through strategic investments and partnerships[38]. Financial Performance and Investments - The total profit, excluding comparable items, decreased to HKD 8,491 million, yet the dividend remained at the same level as in 2020[20]. - Total revenue for 2021 reached HKD 83,959 million, an increase of 5.5% from HKD 79,590 million in 2020[21]. - The group's net profit for 2021 was HKD 9,474 million, down from HKD 12,508 million in 2020, indicating a decrease of about 24.3%[70]. - The company reported a capital return of 7.5%, down from 10.5% in 2020[21]. - The company has over 50 power projects across 15 provinces in mainland China, focusing on low-carbon energy development, including nuclear and renewable energy[15]. - The company plans to invest significantly in decarbonization projects across Hong Kong, mainland China, Australia, and India, demonstrating confidence in market prospects[34]. - The company reported net financial expenses of HKD 1,774 million, indicating a stable financial position despite challenges[28]. - The company has strengthened its relationships with stakeholders and provided community support to mitigate the impacts of the COVID-19 pandemic, with tax payments amounting to HKD 1,720 million[29]. - The company aims to enhance employee quality and productivity by fostering a flexible, innovative, and safe working environment[64]. - The company aims to leverage technology and its expertise in Hong Kong to expand sustainable energy solutions in the Greater Bay Area, responding to increasing demand for smart green energy services[36]. Operational Performance and Challenges - The group's operating profit decreased by 17.8% to HKD 9,517 million, primarily due to a decline in the Australian generation portfolio and high coal prices in mainland China[20]. - Operating profit from Hong Kong electricity and related businesses was HKD 8,490 million, while mainland China contributed HKD 1,660 million[15]. - The company is exploring potential investments in offshore wind power, new gas-fired power generation units, and the introduction of hydrogen power generation technology to reduce carbon intensity[9]. - The company is actively exploring zero-carbon project development opportunities in India through its partnership with CDPQ, with multiple large investment projects underway[36]. - The company is closely monitoring the trend of electrification in transportation and supports the Hong Kong government's roadmap for promoting electric vehicle adoption[46]. - The company is exploring electrification trends in certain market sectors, which will drive electricity demand growth and provide opportunities for market expansion[64]. - The company is actively seeking investment opportunities in low-carbon and zero-carbon projects to support Australia's energy transition[50]. - The company is exploring opportunities in smart energy development, including data centers and energy management systems, in response to ongoing market reforms[47]. - The company is committed to supporting China's carbon neutrality goals by maintaining high utilization rates for nuclear power projects[131]. Customer and Market Insights - The company serves approximately 2.71 million customers in Hong Kong, accounting for about 80% of the local population[16]. - The Australian market is characterized by competitive wholesale electricity services, with EnergyAustralia being one of the largest private generators[18]. - The company has launched a new website in October, modernizing its system technology to enhance customer experience and digital service offerings[110]. - The company continues to provide free charging facilities to support the development of electric vehicles in Hong Kong[110]. - The company has received 130 applications from various commercial entities for its "Green Building Fund" to support energy efficiency upgrades by the end of 2021[112]. Renewable Energy and Technological Advancements - The company is committed to developing smart energy services and expanding its renewable energy portfolio[15]. - The renewable energy generation capacity reached 3,624 MW in 2020, up from 3,398 MW in 2019[24]. - The company is exploring new technologies, including the conversion of gas units to support the use of green fuels like zero-carbon hydrogen[108]. - The company is constructing a second combined cycle gas turbine unit at the Lung Kwu Tan Power Station and an offshore liquefied natural gas receiving terminal, both crucial for the transition to natural gas as a key transitional fuel[43]. - The company has established a roadmap for hydrogen utilization in its gas-fired power facilities in Hong Kong, in collaboration with General Electric[43]. - The company is actively promoting the installation of smart meters and enhancing digital services to improve customer experience[44]. - The company has developed a large-scale battery storage system with a maximum output of 4 MW, which serves as an emergency backup power source[110]. - The company is exploring the development of zero-carbon hydrogen energy and other technologies to further reduce carbon emissions from power generation[110]. Strategic Partnerships and Collaborations - The company is exploring collaborations with CLP Group in hydrogen, microgrid, battery, and storage technologies to enhance capabilities and support a cleaner energy future[154]. - The company is actively collaborating with the Guangxi government to address power supply shortages and ensure stable operations at the Fangchenggang power plant[131]. - The company signed the "India's Electric Vehicle Ambition Statement" at COP26 to support the energy transition in the transportation sector[173]. - The company has invested in the "Southern Grid Energy Innovation Equity Investment Fund" to support new projects related to smart energy and innovation[132].

| --- | --- | |-------|-------| | | | | | | | | | 1 Disclaimer Potential investors, analysts and shareholders of CLP Holdings Limited (the Company) and other recipients of this document are reminded that this document and any oral discussion made together with this document (the presentation) are provided for your information purposes only and you may not forward, publish, distribute, release or disseminate any part of the presentation directly or indirectly to any other person. It is important to note that ...

CLP Holdings Ltd (OTCPK:CLPHY) Q2 2021 Earnings Conference Call August 2, 2021 3:45 AM ET Company Participants Angus Guthrie - Director, IR Richard Lancaster - CEO Nicolas Tissot - CFO Conference Call Participants Evan Li - HSBC Cissy Guan - Bank of America Merrill Lynch Angus Guthrie Welcome, ladies and gentlemen, to CLP's 2021 Interim Results Analyst Briefing and Webcast. I'm joined here today for the webcast by the CEO of CLP Holdings, Mr. Richard Lancaster to my right; and the CFO of CLP Holdings; Mr. N ...