CLP Group 2012 lnterim Results. 14 August 2012

Transcription

1 CLP Group 2012 lnterim Results 14 August 2012

2 Disclaimer This presentation contains some comments about future events including our expectations about the performance of CLP Group's business. The comments are not audited and are based on a number of factors that we cannot control. We cannot be certain that the comments will be accurate or complete and so they should not be relied on. As circumstances change we will update our website at and, where relevant, notify the Hong Kong Stock Exchange. This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities in the United States must be made by means of a prospectus that contains detailed information about the issuer and its management, as well as financial statements 1

3 Financial Performance HK$M 1H2012 1H2011* Change Hong Kong / Hong Kong related 3,566 3,482 2% Overseas 715 1,751 59% Others, net (384) (208) Operating earnings 3,897 5,025 22% Non-recurring items (541) 775 Total earnings 3,356 5,800 42% Operating earnings per share (HK$) % Total earnings per share (HK$) % Dividends per share (HK$) First interim dividend Second interim dividend Total interim dividends % * Prior year figures have been reclassified to conform to 2011 year end presentation 2

4 Earnings Details HK$M 1H2012 1H2011 Hong Kong SoC 3,240 3,114 Nuclear power business 3, , PSDC and sales to Guangdong from HK Australia 268 1,191 China ,751 India (19) 183 Southeast Asia and Taiwan Other earnings (64) 59 Unallocated net finance costs (39) (17) Unallocated Group expenses (281) (250) Operating Earnings before one-off items 3,897 5,025 (22%) Non-recurring items for Hong Kong Non-recurring items for Australia (541) (303) Non-recurring items for Southeast Asia and Taiwan Total earnings 3,356 5,800 (42%) 3

5 Financial Performance Steady performance from Hong Kong and China but reduced earnings from Australia and India Operating earnings affected by negative movements in MTM and translation accounting treatments in Australia (post-tax negative movements HK$438m) and India (post-tax negative movements HK$60m) Hong Kong: Higher earnings from ongoing investment in electricity infrastructure Australia: Earnings reduced primarily due to Yallourn incident and fair value movements China: Improved earnings due to tariff increases and lower coal prices India: Operating earnings affected by coal supply situation in Jhajjar Total earnings included HK$644m provision for Yallourn mine flooding remediation costs and HK$103m tax consolidation credit 4

6 Hong Kong SoC Earnings growth of 4% to HK$3,240m Higher return due to increased average net fixed assets, partly offset by higher interest expense on increased borrowings Capex of HK$3,657m, in line with Development Plan CLP Power: HK$2,289m CAPCO: HK$1,368m (CLP s share: HK$547m) Electricity sales increased by 5.6% Local sales increased by 4.8% to 15,035 GWh primarily due to higher humidity and hot weather in the first half of the year Sales to China increased by 18.1% to 1,002 GWh due to higher contract volumes Transition from long standing Yacheng gas supply arrangement to new gas contract at current international prices and need to increase gas usage to meet emission targets continue to bring tariff pressure 5

7 Hong Kong Going Forward Secure the three gas sources outlined in the 2008 inter- Government MOU including the necessary infrastructure to transport and receive the new gas supplies West-to-East Pipeline Phase II supply from PetroChina to commence within next 12 months Construction of the pipeline in HK waters commenced HKSAR Government approval of gas supply agreements awaited Ongoing investment in Transmission & Distribution to support new infrastructure and residential development in Kowloon and the New Territories Government s policy on the Climate Change Strategy proposed in 2010 still pending Continuing to evaluate options for importing more nuclear power 6

8 Australia Financials HK$m 1H2012 1H2011 Change Gross Margin 6,484 6, EBITDAF 2,889 3,548 (659) Fair Value Movement (before tax) (626) (48) (578) Yallourn Remediation (post tax) (644) - (644) Net Profit After Tax (NPAT) (273) 888 (1,161) Underlying NPAT 707 1,224 (517) Additional contributions from the NSW business partially offset by Yallourn outage Higher operating costs as we integrate NSW, invest in sales and marketing, and build and transform the business Fair Value Movements associated with mark-to-market of cap contracts (non-cash) Yallourn costs booked to cover majority of remediation expenses Underlying NPAT adjusts for MTM effects, Yallourn and tax consolidation 7

9 Australia EBITDAF 3,548 (121) (200) (289) (50) 2, EBITDAF Retail / Wholesale Retail / Wholesale Yallourn Mine Gross Margin impact Corporate & Business Improvements Yallourn Mine GM impact Corporate & Key Business Improvements Exchange Rate Variance Extra 2 months of NSW added to gross margin, partially offset by TSA and GTA costs. Lower average demand, lower wholesale prices and higher costs associated with investment in sales, marketing and retail capabilities reduced EBITDAF contribution Impact to gross margin associated with the Yallourn outage Corporate costs, rebrand, systems, and other IT projects Exchange Rate Variance Decrease in exchange rate in 2012 compared with EBITDAF 8

10 Australia Retail Electricity sales up 14% to 16.4 GWh driven by NSW volumes Gas sales marginally lower at 34.4 PJ New customer service and billing platform to go live in 3Q2012 Rebranding under a single EnergyAustralia brand from October 2012 Good progress on TRU/EA integration Retail position defended Churn rates (customer losses) were below market average in key markets of NSW and Victoria. Customer acquisitions were higher than last year, but not sufficient to replace churn-out. Customer accounts declined by 71k compared with December m mass market customer accounts at June 2012 Electricity Mass Market 30% Churn* 25% 20% 15% 10% 5% 0% NSW Price increases in Victoria in January 2012 and NSW and other jurisdictions from 1 July 2012 onwards will allow recovery of higher network costs and carbon price The business has incurred higher costs during this period of intense change as we integrate NSW and invest in capabilities to take the business forward, including new billing systems, rebranding and additional sales and marketing Vic TRU/EA Market *Source: Australian Energy Market Operator, company data 9

11 Australia Generation Diversified generation portfolio delivered under challenging conditions Total generation output up 11% to 12.8 GWh Record monthly output from Yallourn in January and low forced outage rates (<2%) High availability of flexible gas fleet Conveyor tunnel collapse at Yallourn mine in June disrupted fuel supply After heavy rainfall a coal supply tunnel under the Morwell River Diversion collapsed disrupting fuel supply Retail business and 3 rd party contract covered by generation portfolio and pool market purchases Good progress made on reinstatement of full operations. One unit continued operating throughout June, with three generating units operating by mid July 4 th unit now available Cost impacts to 30 June Yallourn outage: Estimated HK$200m at Gross Margin - lost generation and energy purchases Remediation: HK$644m post-tax provisions for operating and remediation costs Additional costs, not incurred or provided for at 30 June, estimated at HK$200m in 2H2012 Acquired Enhance Place with flexible and long-term coal reserves supplying Mt Piper 10

12 Australia Going forward Retail Introduce new customer care and billing system Complete rebranding Add new value-enhancing products defend and grow market share Focus on cost-out as major projects complete Wholesale & Generation Yallourn operational performance and remediation Gas portfolio management including staged Narrabri coal seam gas development Focus on capital efficiency Progress portfolio of development sites (gas-fired and wind) Advocacy Ongoing advocacy in relation to carbon legislation, Renewable Energy Target review and state based retail energy pricing 11

13 Chinese Mainland Financials HK$m 1H2012 1H2011 Coal-fired projects Renewables projects - Wind Jiangbian Hydro (31) 4 - Other Hydro and Biomass 2 5 Operating expenditure (33) (33) Earnings from operations Development expenditure (10) (9) Reversal of over-accrued tax provision - 6 Total earnings Higher earnings from coal-fired projects Full impact of tariff increases in April and December 2011 Decrease in coal prices of 1-5% Partly offset by slightly fewer units sent out Lower earnings from renewables projects Lower wind speeds and more grid restriction, partially offset by contribution from newly commissioned wholly-owned Penglai 48MW wind project Lower earnings of Jiangbian due to less rainfall and higher interest and depreciation expenses in 1H2012 following commissioning in 2Q

14 Chinese Mainland Coal-fired projects HK$m 1H2012 1H2011 Fangchenggang Guohua & Shenmu Shandong 26 (42) Total Higher earnings from coal-fired projects due to tariff increases in April and December 2011 and lower coal prices in 1H2012 Fangchenggang maintained high levels of generation and good operational performance. Higher earnings were mainly due to higher tariff Lower earnings from Guohua due to ~5% higher price of allocated contract coal and higher portion of market coal Shandong financial performance improved due to tariff increases in 2011 and ~5% reduction in coal price in 1H

15 Chinese Mainland Nuclear Lower earnings from Daya Bay investment mainly due to lower shareholders funds and lower average capacity factor as a result of planned outage in 1H2012 Safety of Daya Bay Nuclear Power Station has been confirmed as part of the National Comprehensive Nuclear Safety Review Report to have adequate measures in place to prevent and mitigate severe accidents A number of enhancements are being implemented at Daya Bay to enhance safety even further and to reinforce the continuation of Daya Bay s longstanding safety record Acquisition for the Yangjiang project to supply Guangdong awaiting regulatory approval from the PRC authorities CLP remains confident in nuclear developments in China Safety measures further enhanced following analysis of Fukushima incident Cost competitive Policy support from the Central Government Contribution to China s energy security and carbon reduction 14

16 Chinese Mainland Going Forward Continue transition to lower carbon-emitting generation and rationalisation of coal-fired portfolio Progress the development of the 1,320MW ultra-supercritical units of Fangchenggang Phase II using imported coal In-principle approval from NDRC has been obtained in July 2012 to proceed various studies for final approval Continue to manage coal price volatility by pursuing long-term coal supply contracts and sourcing and blending alternative coal supplies Continue to develop and build our renewable energy portfolio with focus on wholly-owned wind and small/medium hydro projects Complete acquisition for 17% stake investment in Yangjiang nuclear project to supply Guangdong 15

17 India Financials HK$m 1H2012 1H2011 Paguthan operating earnings Paguthan unrealised exchange gain on translation of FX receivables under PPA Paguthan interest income Paguthan dividend distribution tax provision (27) (21) Total Paguthan earnings Renewables operating earnings (including development expense) Renewables pre-operating loss (3) (1) Jhajjar operating loss (106) - Jhajjar net fair value movement on financial derivatives and exchange differences (75) 17 Jhajjar pre-operating loss (41) (55) Total earnings (19) 183 Paguthan (formerly GPEC) operated reliably with lower dispatch due to higher gas prices. Lower operating earnings in 2012 mainly due to higher heat rate and higher deferred tax expense Higher operating earnings from renewables primarily due to increase in operating projects (1H2012: 482MW vs. 1H2011: 361MW) and higher wind resource at Samana II and Theni in 2012 Operations from Jhajjar Unit 1 impacted by coal shortage following commissioning in March 2012 Jhajjar fair value movement and exchange differences included HK$34m unfavourble fair value movement on USD-loan related hedges and HK$23m translation loss on unhedged portion of USD-loan Jhajjar pre-operating loss in 2012 included HK$28m (1H2011: HK$16m) amortisation of forward premium on foreign exchange contracts in relation to USD-loan 16

18 India Fair Value Movements and Exchange Differences The HK$75m fair value movements and exchange differences relate to the Jhajjar Project CLP s policy on hedging is part of prudent risk management. We use hedges to manage forex and interest rate risk by Matching forex outgoings with the currency in which future income is received Interest rate swaps which reduce the effect of interest rate movements It is not always possible to exactly match the hedge with the underlying obligation, so not all hedges are hedge accounting effective, even though they make good commercial sense This is the case in India where long-term currency instruments may not be available At Jhajjar, we hedged the following: Payments to the EPC contractors that are required to be made in Euro and USD Project loans that are in USD 17

19 India Jhajjar Unit 1 and 2 were commissioned in March 2012 and July 2012 respectively Unit 1 has been running at irregular intervals due to lack of coal Implementing coal linkage arrangement through 20-year Fuel Supply Agreement signed with Coal India Limited in June 2012 Approval from Haryana State offtaker on imported coal arrangement received in July 2012, representing ~15% of annual coal demand Wind: Portfolio growth and improving performance Growth: Operational 482 MW (1H2011: 361 MW) and 240 MW under construction Performance: Sign of encouraging wind resources in early monsoon season Continue to manage gas supply contracts for Paguthan Cautiously consider selected Wind projects in reforming states, with creditworthy offtakers and good wind resources Opportunities for greenfield coal projects backed by dedicated coal sources 18

20 Southeast Asia & Taiwan HK$m 1H2012 1H2011 Ho-Ping earnings EGCO earnings (EGCO sold in February 2011) - 5 Thailand renewables business 16 (2) Development expenditure (7) (8) Operating expenditure (17) (34) Operating earnings Gain on sale of EGCO Total earnings Higher earnings from Ho-Ping mainly due to higher generation and higher unit price for energy charge in MW Lopburi solar PV project started full commercial operation in March Arrangements for the 8 MW expansion are being finalised Continue assessing development of Vietnam coal-fired projects 19

21 Financing Significant financing activities completed during 1H2012 with competitive terms despite challenging financial markets S&P and Moody s affirmed the credit ratings of CLPH (S&P:A-; Moody s:a2) and CLPP (S&P:A; Moody s:a1) with stable outlooks S&P affirmed the credit rating of TRUenergy to BBB with stable outlooks Exploring options to support financing requirements of ongoing growth strategy 20

22 Outlook Steady performance from Hong Kong business with focus on Operating efficiency, cost control and mitigation of tariff increases Continuing transition to low carbon generation gas & nuclear Non-HK businesses are characterised by greater volatility Australia focuses on Delivery of value from vertically integrated business model Remediation at Yallourn Quality of customer service China niche strategy Nuclear Renewables (wind & small/medium hydro) Expansion at Fangchenggang India goals are Stabilising fuel supply (mainly coal for Jhajjar) Building on existing wind energy platform 21

23 Appendices

24 Financial Obligations at a Glance 30 Jun Dec 2011 Borrowings of CLPH and CLPP (a) HK$34,299m HK$35,069m Total Debt/Total Capital 30% 30% Net Debt*/Total Capital 29% 29% Interest Cover 10x 15x Borrowings of CAPCO and PSDC assuming 100% HK$6,172m HK$5,622m Borrowings of TRUenergy, India & PRC subsidiaries (non-recourse to CLPH) (b) HK$31,725m HK$30,452m CLP Group (consolidated with TRUenergy, India & PRC subsidiaries) Total Debt = (a)+(b) HK$66,024m HK$65,521m Total Debt/Total Capital 45% 45% Net Debt/Total Capital 43% 43% Interest Cover 3x 4x * As of 30 June 2012, CLPH and CLPP had a cash balance of HK$1.2 billion (Dec 2011: HK$1.3 billion) A-1

25 Credit Ratings CLP Holdings CLP Power TRUenergy S&P Moody s S&P Moody s S&P Long term Rating Foreign Currency Outlook A Stable A2 Stable A Stable A1 Stable BBB Stable Local Currency Outlook A Stable A2 Stable A Stable A1 Stable BBB Stable Short term Rating Foreign Currency A-2 P-1 A-1 P-1 - Local Currency A-2 P-1 A-1 P-1 - S&P and Moody s affirmed the above credit ratings A-2

26 Highlights of CLP Group s Financing Activities CLP Holdings arranged a total of HK$1.15 billion new bank loan facilities in May and June 2012 CLP Power raised an aggregate of HK$3 billion debts in bank and bond markets through the MTN Programme HK$1.4 billion 5, 7 and 15-year bonds and HK$1.3 billion 3-year bank loan facilities between January and April 2012 JPY3 billion (HK$294 million) 10-year bond in July All the Japanese yen proceeds were swapped back to Hong Kong dollars to mitigate foreign currency risk TRUenergy arranged US$400 million (HK$3.1 billion) 5, 7, 10, 12 and 15-year bonds through US private placement in March All U.S. dollar proceeds were swapped back into fixed rate Australian dollar to mitigate foreign exchange and interest rate risks Jhajjar Power refinanced Rs.4.3 billion (HK$587 million) loans from nine Indian banks by loans from two international banks with reduced funding cost in July 2012 A-3

27 Hong Kong Electricity Business Electricity Sales GWh 1H2012 1H2011 Change Residential Commercial Infrastructure & Public Services Manufacturing 4,052 6,133 3, ,800 5,907 3, % 3.8% 5.6% 0.3% Total Local Sales 15,035 14, % Export Sales 1, % Total Sales 16,037 15, % A-4

28 Hong Kong Electricity Business Capex Total Capital Expenditure in line with Development Plan 8,000 HK$M 1H2012 1H2011 Change 7,000 6,000 1,972 2,010 1,919 1,724 CLP Power HK 2,289 1, % 5,000 4,000 1,314 1,341 1,279 1,149 CAPCO 1,368 1, % 3,000 2,000 4,379 5,693 5,788 5,831 4,903 4,447 4, , Total 3,657 3, % 1,000 2,289 2,836 0 FY2008 FY2009 FY2010 FY2011 1H2012 Capex incurred up to June 2012 of HK$29.2 billion, vs. Development Plan from October 2008 to December 2013 of HK$41.6 billion* * Included HK$1.7 billion capex approved in 2011 related to new gas receiving station and cost for the Black Point Power Station plant modifications CAPCO - EM s share CAPCO - CLP s share CLP Power A-5

29 Environmental Improvement Total Emissions (kilotonnes) Significant emissions reductions achieved over the past 2 decades Electrostatic Precipitators at CPPS Low NOx burners at CPPS Nuclear at Daya Bay Natural Gas at BPPS Reduction in Natural Gas Supply Increasing use of Ultra Low Sulphur Coal Emissions Control Project Total Emissions Reduction NO X 82% SO 2 88% Year Gas 21% RSP 82% Total 82% Electricity Demand 2011 Generation Mix by Fuel Coal 49% Nuclear 30% A-6

30 2012 Residential Tariff Comparison Residential Tariff HK cents/kwh Kuala Lumpur Taipei Vancouver Jakarta Shanghai Shenzhen Miami Seoul CLP San Francisco Washington, D.C. Macau Houston Paris Helsinki Lisbon Singapore London Madrid Manila Luxembourg Wellington New York Sydney Brussels Amsterdam Tokyo Berlin Rome Comparison based on annual domestic consumption of 3,300 kwh - Tariff and exchange rate at January Source: Web search A-7

31 Electricity Tariff Rises in Major Metropolitan Cities Comparison based on annual residential consumption of 3,300 kwh - From 2005 to January 2012 Berlin Jakarta Madrid Brussels Lisbon Tokyo Luxembourg Paris Vancouver CLP Pow er Kuala Lumpur Taipei Seoul Amsterdam Wellington Rome New York London Singapore Sydney 0% 20% 40% 60% 80% 100% Source: Web search A-8

32 Australia Financials Financials (HK$m) 1H2012 1H2011 Gross margin Electricity 5,640 5,259 Gross margin Gas Operating expenses and others (3,595) (2,556) EBITDAF 2,889 3,548 Fair value movement (626) (48) EBITDA 2,263 3,500 Depreciation & amortisation (1,042) (991) Net interest expenses (821) (848) Tax expense (154) (522) Renewables Solar Systems final distribution from liquidator - 37 Operating earnings before one-off items 268 1,191 Yallourn costs (644) - Tax consolidation effect NSW Acquisition stamp duty - (640) Gain on reorganisation of Roaring 40s Net Profit After Tax (NPAT) (273) 888 Reconciliation of NPAT to Underlying NPAT NPAT (273) 888 Post-tax fair value movement Yallourn costs, tax Tax consolidation effect (103) - NSW Acquisition stamp duty Gain on reorganisation of Roaring 40s - (337) Underlying NPAT 707 1,224 Decrease in EBITDAF mainly due to Higher gross margin driven by the inclusion of EA into the portfolio and higher retail tariffs, offset by lower wholesale prices and lower usage across electricity and gas Generation output increased by 11%, driven by a full six month contribution from NSW Gentrader assets offset by lower generation volume from Yallourn after 6 June 2012 and lower wholesale prices Higher operating costs as we integrate NSW, invest in sales and marketing, and build and transform the business (includes EA integration, corporate costs, sales and marketing IT projects and rebrand) Unfavourable fair value movements on energy contracts resulting from falling forward prices in a low volatility electricity market Yallourn costs include remediation (river diversion, levees and dewatering) and impairment of fixed assets Tax consolidation effect related to the amendment of tax consolidation rules enacted in 2010 A-9

33 Australia Mark to market movement A negative MTM movement of HK$626 million in 1H2012 The amount represents the accounting treatment of mark-to-market movements of energy contracts due to falling forward prices for electricity in Australia and lower prices of caps (which are used to guard against the consequences of volatility in the price of electricity in the National Electricity Market) Trading and energy derivative activities are part and parcel of good practice in the management of risks arising from a competitive and complex electricity market These derivatives allow us to use our generating assets more effectively and, on the retail side, help protect us against unforeseen rises in the cost of electricity we supply to our customers The nature of our business in Australia and the ongoing use of derivatives to manage risk mean that significant fluctuations in the operating earnings from Australia will remain a continuing feature of our accounts A-10

34 Australia Operational Statistics Operational Statistics 1H2012 1H2011 Change Generation Output (GWh) 12,809 11,534 11% Electricity Sales (GWh) 16,416 14,368 14% Natural Gas Sales (TJ) 34,350 35,172 (2)% MM Customer Accounts ( 000) 2,736 2,790 (2)% A-11

35 Australia NSW Forward Cap Prices NSW Cap Price $/MWh $30 $20 Jun-12 Dec-11 Cap products protect against market volatility in regions where we do not have peaking generation Caps are essential risk management tools for a prudent retailer and protect against pool prices of up to A$12,900/MWh The NSW acquisition included a long cap position in NSW $10 Mild summer weather in 2012 reduced volatility in the market and led to a reduction in forward cap prices, resulting in mark-to-market losses in the six months to 30 June 2012 $0 Contract Period A-12

36 Australia Impact of Carbon On 1 July 2012 the Australian Government s carbon pricing legislation came into effect. The package includes a default target of 5% abatement on Year 2000 CO 2 equivalent emissions by Year 2020 across the Australian economy, a fixed carbon price for the first three years beginning on 1 July 2012 and starting at A$23 per tonne for liable entities. The fixed carbon price will rise at 2.5% each year. To facilitate the transition to lower carbon emissions the Government established an Energy Security Fund. Under the Fund a total of A$5.5 billion in the form of cash and free permits has been allocated to emission intensive coal-fired generation plant to be distributed as follows: A one-off payment of A$1 billion to be divided between recipient generators in proportion to their historical emission intensity and output and deliverable by 30 June On 22 June 2012 TRUenergy received a cash payment of A$257.5m (or 25.75% of the total) as part of this arrangement. Four annual allocations of million free carbon permits to be divided between recipient generators in proportion to their historical emission intensity and output, deliverable on the 1st of September 2013, 2014, 2015 and TRUenergy anticipates receiving a further 25.75% of these allocations conditional on Yallourn passing a power system reliability test (administered by the Australian Energy Market Operator) and publishing a Clean Energy Investment Plan. A-13

37 India - Fair Value Movements and Exchange Differences Four hedging / swap arrangements (none of which is accounting effective) are reflected in the HK$75m impact to the P&L in 1H EUR/USD forward contracts executed to hedge currency exposure of the EPC payments (HK$4m negative fair value movement) 2. Retention payments due to EPC contractors recorded as current liabilities on the books and are subject to translation at closing rate (HK$14m unrealised exchange difference) 3. A principal-only swap entered into to hedge the currency exposure for initial USD-project loan (HK$34m negative fair value movement) 4. Forward contracts entered into to hedge the currency exposure of a USD-refinancing project loan (which has a 13-year tenor). Hedging instruments >10 years were not available in the market, thus the payments for the last 3 years could not be hedged and are subject to translation at closing rate (HK$23m unrealised exchange difference) A-14

38 Generation Portfolio June ,304 Equity MW and 8,999 MW capacity purchase (total: 22,303MW) CHINA total 6,800 MW Operational Daya Bay 1,968/1,380* MW (n) Pumped Storage 1,200/600* MW (h) Fangchenggang 1,260/882 MW (c) SZPC 3,060/900 MW (c) CSEC Guohua 7,870/1,441 MW (c) & Shenmu Boxing Biomass 15/12 MW (b) Hydro Projects 505/486 MW (h) Wind Projects 1,036/536 MW (w) CGN Wind 1,878/485 MW (w) Construction Wind Projects 98/39 MW (w) CGN Wind 123/39 MW (w) India China Thailand Hong Kong Taiwan HONG KONG total 6,908 MW* Operational Castle Peak 4,108/1,643 MW (c) Black Point 2,500/1,000 MW (g) Penny s Bay 300/120 MW (d) INDIA total 2,697MW Operational Paguthan Jhajjar Wind Projects Construction Jhajjar Wind Projects 655/655 MW (g) 660/660 MW (c) 482/482 MW (w) 660/660 MW (c) 240/240MW(w) AUSTRALIA total 5,616 MW THAILAND total 18 MW Operational NED Solar TAIWAN total 264 MW Operational Ho-Ping 55/18 MW (s) 1,320/264 MW (c) Australia Operational Yallourn Hallett Ecogen Tallawarra Delta West Wilga Park Wind Projects Construction Wilga Park 1,480/1,480 MW (c) 203/203 MW (g) 966/966* MW (g) 420/420 MW (g) 2,400/2,400 * MW (c) 10/2 MW (g) 177/144 MW (w) 6/1 MW (g) Station Name Gross MW / CLP Equity MW * Capacity purchase Fuel Source: (c) coal-fired (g) gas-fired (w) wind (h) hydro (n) nuclear (b) biomass (d) diesel (s) solar A-15

39 Renewables Portfolio June ,481 Equity MW (over 18% of total generation capacity) CHINA total 1,597 MW Operational (1,519 MW) Majority-owned - Wind 147 MW - Hydro 486 MW - Biomass 12 MW Minority-owned - Wind 389 MW CGN Wind 485 MW Majority-owned projects Qian an I & II Penglai Huaiji Dali Yang_er Jiangbian Boxing Biomass 99/99 MW (w) 48/48 MW (w) 125/106 MW (h) 50/50 MW (h) 330/330 MW (h) 15/12 MW (b) India China Thailand INDIA total 722 MW Operational (482 MW) Khandke Samana - I Samana - II Saundatti Theni I & II Harapanahali Andhra Lake Sipla 50/50 MW (w) 50/50 MW (w) 50/50 MW (w) 72/72 MW (w) 99/99 MW (w) 40/40 MW (w) 106/106 MW (w) 14/14 MW (w) Construction (240 MW) Sipla 37/37 MW (w) Bhakrani 102/102 MW (w) Tejuva 101/101 MW (w) Minority-owned projects Changdao Weihai I & II Nanao II & III Shuangliao I & II Rongcheng I & II & III Datong Laizhou Changling II Guohua wind Qujiagou Mazongshan 27/12 MW (w) 69/31 MW (w) 60/15 MW (w) 99/48 MW (w) 148/73 MW (w) 50/24 MW (w) 41/18 MW (w) 50/22 MW (w) 248/121 MW (w) 49/12 MW (w) 49/12 MW (w) Australia AUSTRALIA total 144 MW Operational Cathedral Rocks 66/33 MW (w) Waterloo 111/111 MW (w) THAILAND total 18 MW Operational NED Solar 55/18 MW (s) CGN Wind 1,878/485 MW (w) Construction (78 MW) Minority-owned - Wind 39 MW CGN Wind 39 MW Wind projects (w) Hydro projects (h) Biomass projects (b) Minority-owned projects Guohua wind 50/24 MW (w) Chongming I 48/14 MW (w) CGN Wind 123/39 MW (w) Solar project (s) Station Name Gross MW / CLP Equity MW A-16

40 Renewables Portfolio by Fuel Mix June ,481 Equity MW Geographical and fuel diversity Hydro (486 MW) 3 hydropower projects in China (486MW) Wind (1,965MW) 25 wind farms in China (575 MW) Strategic investor in CGN Wind in China (524MW) Biomass (12 MW) 1 plant in China (12MW) 2 wind farms in Australia (144 MW) 11 wind farms in India (722 MW) Solar (18 MW) 1 solar project in Thailand (18MW through NED) A-17

41 Equity MW by Fuel Mix June ,304 Equity MW Attributable to CLP Group Capacity by Energy Type Total Equity MW (a) + (b) % No. of projects Equity MW in operation (a) % MW under construction/ financially committed (b) % Coal 7,929 59% 18 7,269 55% 660 5% Gas 2,281 17% 5 2,280 17% 1 <1% Nuclear * 492 4% % - - Diesel 120 1% % - - Wind 1,965 15% 65 1,647 12% 318 2% Hydro 486 4% % - - Solar 19 <1% 2 19 <1% - - Biomass 12 <1% 1 12 <1% - - Total 13, % 96 12,325 93% 979 7% * CLP owns 25% of GNPJVC which owns Daya Bay units 1 and 2 A-18