2016 interim results presentation
- 1. 1 2016 Interim Results Investor Presentation Hong Kong, 9 August, 2016
- 2. 2 Disclaimer The presentation material contains forward-looking statements. Such forward- looking statements are subject to various risks, uncertainties and assumptions, certain of which are not under our control, causing actual results and growth which may differ materially from these direct or indirect forward-looking statements. Forward-looking events and relevant development discussed herein may differ from the expectation of Yingde Gases Group Company Limited (the "Company"), and even never occur due to such risks, uncertainties and assumptions. You should not rely excessively on any forward-looking information. As the presentation material prepared by the Company is not verified independently, there is no direct or indirect statement or guarantee for the accuracy, fairness and completeness of the information or content contained herein, and reliance should not be placed on the accuracy, fairness and completeness of the information or content contained herein. The Company, any of its associates, consultants or representatives shall not assume any responsibilities for losses arising from the information or content contained herein. Information or content contained herein is subject to variation from time to time without prior notice, and its accuracy is not assured. In addition, all of the forward-looking statements quoted herein by the Company are as of the day of the presentation; the Company is not obligated to update the statements.
- 3. 3 Mr. Mark Zhongguo Sun Chairman and Chief Executive Officer Mr. Trevor Raymond Strutt Executive Director and Chief Operating Officer Ms. Samantha Sze Wing Wong Chief Financial Officer and Joint Company Secretary Presenters
- 4. 4 2016 Interim Financial Review Industry and Business Overview Q & A Session
- 5. 5 898 1,095 1H2015 1H2016 3,799 4,140 1H2015 1H2016 1,270 1,486 1H2015 1H2016 Revenue (RMB million) (RMB million) (RMB million) (RMB million) Steady increase in revenue, increase profitability from operation EBITDA Adjusted profit for the period Profit from operation Steady Revenue & Profit Growth 415 384 6 154 1H2015 1H2016 Profit for the period as reported Foreign currency exchange loss 421 538
- 6. 6 1H2015 1H2016 Others Merchant gas On-site gas 1H2015 1H2016 Change Main Business RMB’ million % RMB’ million % RMB’ Million % On-site gas 3,348 88.1 3,464 83.7 115 3.4 Merchant gas 406 10.7 402 9.7 (4) (1) Others 45 1.2 274 6.6 229 508.9 Total 3,799 100.0 4,140 100.0 340 9.0 A slight drop of merchant gas revenue while on-site gas remains the core performance contributor. Perfect business combination secures stable revenue growth even during economic downturn. Turnover by Business 10.7% 88.1% 83.7% 9.7.% 6.6% 1.2%
- 7. 7 441 454 292 545 981 1H12 1H13 1H14 1H15 1H16 662 929 1,178 1,270 1,486 27.8% 29.2% 32.1% 33.4% 35.9% 1H12 1H13 1H14 1H15 1H16 EBITDA EBITDA Margin (RMB in million) Revenue (RMB in million) EBITDA and margin (RMB in million) Net operating cash flow Stable Operating Cash Flow and Profitability Ratios
- 8. 8 678 1,050 2015 1H2016 Cash & cash equivalents Fixed assets Total equity Total debt (RMB million) (RMB million) (RMB million) (RMB million) 9,663 10,127 49.4% 50.0% 2015 1H2016 Total debt as % of total assets Balance Sheet Remain Strong 10,274 10,302 3,013 3,011 67.9% 65.7% 2015 1H2016 PP&E CIP as % of total assets 13,070 13,269 6,879 7,003 35.1% 34.6% 2015 1H2016 Total equity as % of total assets
- 9. 9 2016 Interim Financial Review Industry and Business Overview Q & A Session
- 10. 10 Production capacity - Nitrogen (Nm3/ hr) No. of on-site facilities 62 1,959,300 2,477,600 Production capacity - Oxygen (Nm3 / hr) 1,809,300 2,373,600 66 1H2015 1H2016 Production capacity - Argon (Nm3/ hr) 49,54047,400 3 facilities commenced operation in second half 2015 and 1 facility commenced operation in first half of 2016 added 150,000Nm3/hr Oxygen capacity 1 2 Onsite Operating Facilities Protected by long term take-or-pay contracts to generate stable and lasting earnings
- 11. 11 Self-supporting network Engaged in a selective expansion of facility network Taking into account the strategic value to overall expansion strategy Targeted locations that are highly industrial or resource rich Leverage existing production plants to complement new production facilities in order to – Support each other during the ramp-up period of new production plant – Minimize disruptions to customers and business uncovered provinces Diversified and Optimized Geographic Coverage and Self-supporting Network 69 gas production facilities in operation were well diversified across 19 provinces in China as of June 30, 2016 Since 2012, on-site oxygen installed capacity has grown at CAGR of 12% Customer industry Oxygen capacity (Nm3/hr) In operation On-site Steel 1,386,900 (71%) Non-steel 572,400 (29%) Subtotal 1,959,300 Merchant n/a 3,000 (0%) Total 1,962,300 Contracted and under development Steel 64,000 (32%) Non-steel 133,500 (68%) Total 197,500 Production facilities Production facilities covered 19 provinces
- 12. 12 Volume of sold Nitrogen (Million Nm3) 189.5 270.7 Volume of sold Oxygen (Million Nm3) 185.0 254.6 Volume of sold Argon (Million Nm3) 65.862.2 1H2015 1H2016 Pro-active sales strategy: focus on direct sales and fixed term contract sales to decrease the volatility of merchant sales 1 Capitalize on our leading position in on-site market: with the best self supporting network in China, we are able to secure merchant customers over the nation. 2 Merchant Gas Operation
- 13. 13 2016 Interim Financial Review Industry and Business Overview Q & A Session
- 14. 14 Q & A Session