annual results 2009 20th april 2010 hong kong. 2009 results summary 2009 market environment review...

ANNUAL RESULTS 2009

20th April 2010

Hong Kong

2009 Results Summary

2009 Market Environment Review

2009 Corporate Business Progress

2010 Corporate and Market Outlook

3

25096.7

30741.8

2008-12-31 2009-12-31

141.9

126.7

2008 2009

5.856.01

2008 2009

331.46

326.51

2008 2009

53864907

2008 2009

95.6494.76

2008 2009

Installed Capacity

Utilization Hour

Gross Generation

Unit Coal Consumption

Internal UsageEquivalent Availability Factor

(MW)

(%)(%)

(g/KWh)(Hour)

(Billion KWh)

22.5%

8.9%

0.88

12%

1.5%

0.16

2009 Results Summary-Operation Data

Source: Corporate Annual Report 2009

4

2009 Results Summary-Operation Data

36.9 47.94

2008 2009

0.749

1.612

2008 2009

32.8

30.9

2008-12-31 2009-12-31

80.53 82.17

2008-12-31 2009-12-31

0.06

0.14

2008 2009

158.7

184.2

2008-12-31 2009-12-31

Operating Revenue

Basic EPS

Net Profit

Debt to Asset Ratio

Net AssetsTotal Assets

(Billion RMB)

(Billion RMB)(Billion RMB)

(%)(RMB/Share)

(Billion RMB)

29.9%

0.08

16.1%

115.2%

1.64

6.1%

Source: Corporate Annual Report 2009 (IFRS)

5

0.84%

59.61%16.56%

3.99%

4.02%

5.90%9.07%

5

0.88%

60.21%16.46%

3.87%

4.72%

4.06%9.80%

Cost Structure Analysis

14.51%

18.98%20.93%

23.99%

2.45%

21.80%

11.25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Local government surcharges Fuel Cost

Depreciation Repairs and maintenance

Salaries and staff welfare Others(Including S,G&A)

Finance Costs

Notice: Due to the changes of other expenses changed in large scale, the column of others mainly reflects the S,G&A

Source: Corporate Annual Report 2009 (IFRS)

Cost Structure in 2009

Cost Structure in 2008（ Restated)

2009 Operating Cost Breakdown YOY Changes

7

0

50

100

150

200

250

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep

-08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep

-09

Nov

-09

Jan-

10

0

200

400

600

800

1,000

1,200

06-0

1

06-0

4

06-0

7

06-1

0

07-0

1

07-0

4

07-0

7

07-1

0

08-0

1

08-0

4

08-0

7

08-1

0

09-0

1

09-0

4

09-0

7

09-1

0

10-0

1

6000Kal 5500Kal 5000Kal

Coal Price Bottomed Out

Spot Coal Price in Qinhuangdao Port （ RMB/Ton)

588535

2008 2009

Company’s Average Standard Coal Price Changes in 2009 （ RMB/Ton

）

Source: Corporate Information and Data

BJ Spot Coal Price in Australia （ RMB/Ton)

8

0

100

200

300

400

500

600

Honghe

Nala

n

Lix

ianjia

ng

Yungang(1

)

Yuncheng(2

)

Pengshui

Tangshan

Shento

u

Lia

ncheng

Jin

zhou

Chaozhou

Nin

gde

On-grid tariff before adjustment On-grid tariff after adjustment

100 80

150 200

200

2008.7.1 2008.8.20 2009.11.20 2010.？

353368

2008 2009

▼On-grid tariffs in 2009 were raised mainly due to the tariff adjustments in 2H 2008. The tariff adjustments on 20th December 2009 were more for grid side, with marginal impact to the IPP side.

Tariff Adjustment with Positive Effect

Tariff Adjustment since 2008 (RMB/MWh)

Datang’s Average On-grid Tariff (RMB/MWh)

Detailed Tariff Adjustments Affecting Datang

(2009-11-20)


Notice: Green part is for on-grid side and yellow part is for grid company side.

9

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

09.2 09.3 09.4 09.5 09.6 09.7 09.8 09.9 09.10 09.11 09.12 10.1 10.2 10.3

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Monthly YoY Growth Accumulated YoY Growth

Power Demand Up with Rising Utilization Rate

▼The nation’s power demand in 2009 demonstrated a strong rebound with a recovery of the domestic economy.

Source: China Electricity Council

National Monthly Power Generation YoY Growth

1111

18,492.0

25,096.7

21,167.9

30,741.8

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Capacity Attributable toDatang(MW)

Capacity UnderManagement(MW)

At end-2008 At end-2009

Power Capacity Raised Substantially

▼In 2009, the company had 21 new generating units, with total capacity of 5645MW put into commercial operation and the generation capacity was raised substantially.

Installed Capacity Growth in 2009


14.5%↑22.5% ↑

1212

96.3%

3.7%0.2%

10.6%

89.3%

0.9%

88%

11.1%

Coal-fired Unit

61.8% 25.5%

12.7%

63.4% 21.4%

15.2%

Fuel and Unit Structure Further Optimized

Coal-fired Units Structure end of 2008

Units Below 300MW Units of 300MW

Units of 600MW Grade

Capacity Structure end of 2007



Hydro power Unit Wind power Unit

Coal-fired Units Structure end of 2009


1313

45274907

National Average Datang Power

48395255

National Average Datang Power

Utilization Rate Higher than National Average

Average Utilization hours for All Units in 2009

▼In 2009, the Company’s average utilization hours for coal-fired units achieved 5255 hours, 416 hours higher than the national average.

Average Utilization hours for Coal-fired Units in 2009


14

Material Progress in Merger and Acquisition▼In 2009, the Company has finalized the assets integration with China Datang Corporation in certain provinces, acquisition of Chongqing Yuneng Group and the restructuring of Xiduo Railway Corporation.

Regional Power Assets

Consolidation

The company had finished acquiring Chongqing Yuneng group

Raise the holding ratio of Pengshui, Yinpan and increased the

installed capacity in Chongqing

Assets Transfer with

Parent Company

Strategic Restructure of Rail

Assets

Accepted the parent’s assets in Inner Mongolia, Liaoning and Fujian provinces, and sold the assets in Shandong and overseas to the parent company.

Expanded more room for development and raised the projects reserve and development potential

Finished restructuring of Xiduo Railway

Invested in railway in Inner Mongolia as a minority shareholder and assured the rail transportation for coal and chemical product

Diversified the operational risks for rail assets

Source: Corporate Information

15

• New added quota of

domestic banking

facilities of 152billion

RMB

• By the end of 2009,

there was still

169billion RMB quota

left

Medium Term Notes

• Raised 3billion RMB

• 5 years term

• Coupon rate of 4.1%

• Raised 3billion RMB

• 10 years term

• Coupon rate of 5%

Non-public Offering

Corporate Bonds

Banking Facilities •The A share non-public offering was finalized before March 2010 and raised 3.248billion RMB with 530million new shares issued•Effectively lower the debt ratio

Corporate Finance with Multiple Instruments


16160%

10%

20%

30%

40%

2007 2008 2009

Shipping Project

Shipping Project

Railway ProjectRailway Project

Coal Mine Project

Coal Mine Project

Shengli East Unit 2 Coal Mine produced 5.05million

tons of coal

Tashan Coal Mine produced 17 million tons of coal

Yuzhou Coal Mine produced 6.45 million tons of coal

The railway under construction by the Company as

a minority shareholder is about 3000 km

The railway in operation in which the company has

minority shares transported about 70 million tons of

cargo in 2009

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009

Datang No. 2 Vessel was put into operation

The self sufficient seaborne coal reached 2.63million

tons in 2009

The Company has three vessels in operation by now

Coal Self-sufficient Ratio

0

1000

2000

3000

4000

2006 2007 2008 2009

Length of Rails under Construction （ KM）

Seaborne Coal Self-sufficient Ratio

Non-power Business Progressed Smoothly

Coal-Chemical Project

Coal-Chemical Project

Three among seven sections finalized proliferation in

Duolun coal-to-PP project in 2009

As the first similar project being approved by the State,

Keqi Coal based Natural Gas Project started construction


1717

Emissions Reduction with Good Results

6.14

4.69

2.79

1.0350.444

0

1

2

3

4

5

6

7

2005 2006 2007 2008 2009

344

241206 202

133

0

100

200

300

400

500

2005 2006 2007 2008 2009

0.63

0.31 0.2870.215

0.147

0

0.2

0.4

0.6

0.8

1

1.2

2005 2006 2007 2008 2009

3.30

2.78 2.61

2.06

1.541

0

1

2

3

4

2005 2006 2007 2008 2009

Notice: The blue line represent the average emission rate of the five big power generation groups in China

▼Since 2005, the Company has devoted more resources on environmental protection. The emission indicators of major pollutants had been improved year-on-year and are now far better than the national and industrial average standards.

SO2 Emission per KWh (g/KWh)

NOX Emission per KWh (g/KWh)

Ash Emission per KWh (g/KWh)

Waste Water Emission per KWh (g/KWh)


1919

Power Generation Business Heading up

0.03%1.61%

10.45%

87.91%

Coal-fired Hydro Power Wind Power Solar Power

▼In 2010, the Company plans to add over 6000MW new operating capacity so as to improve the core power generation business.

Expected Capacity Structure by the end of 2010

21,167.9

30,741.8

25,000

37,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Capacity Attributable toDatang(MW)

Capacity UnderManagement(MW)

By the end of 2009 By the end of 2010

Expected Installed Capacity by the end of 2010


20

More Breakthrough in Non-power Business

Acquired the 70% stakes in the Inner Mongolia Baoli Coal Mine and gained 3 million tons of thermal coal production capacity

Phase one of Shengli East Unit 2 Coal Mine plans to produce 10 million tons of coal

Tashan Coal Mine plans to produce 20 million tons of coal

Yuzhou Coal Mine plans to produce 7 million tons of coal

Wujianfang and Kongduigou Coal Mines aimed to move forward in preliminary works

In 2010 Duolun coal-to-PP project will finalize the proliferation of all sections, breaking through all the technical procedures and produce the end product

Keqi Coal-based Natural Gas Project will finalize the target in construction

Fuxin Coal-based Natural Gas Project was approved by the NDRC and started construction

The Tanggang Railway plans to achieve 100 millions tons of cargo volumn in 2010

The projects under construction of Xiduo Railway Company progress smoothly

The Baozhang Railway, Baxin Railway and Chijin Railway under construction will achieve more progress

▼In 2010, the company will make important progress and breakthrough in coal mines, coal-chemicals, railway and other non-power businesses.


21

Challenges & Opportunities for Power Sector◎ Power supply and demand roughly balanced

◎ The national power demand in 2010 is expected to grow 9%

◎ Newly commenced capacity is 85GW and 10GW of small coal-fired units will be closed and the growth in capacity is 8%

◎ Nation wide average utilization hours is about 4500, equal to or lower than that of 2009

◎ Coal supply and demand balanced with higher coal prices

◎ Coal output was controlled due to local sector consolidation

◎ Demand for coal will rebound with Macro-economy’s recovery

◎ Railway and seaborne capabilities raised and transportation will be de-bottlenecked

◎ More urgent to reform the tariff pricing mechanism

◎ Tariff adjustments are far lagging behind coal price increases since 2006

◎ It is more urgent to rationalize the on-grid tariff to reflect the fuel cost changes for the IPPs

0%

5%

10%

15%

20%

25%

National Power Demand and Installed Capacity Growth in 2000-2010

National Industrial Value Added in Comparison

15.4

17.815.7 16 16

14.7

11.4

8.2

5.4 5.7

11.0

8.37.3

8.910.7 10.8

13.916.1

19.2 18.5

12.8 12.812.3

18.1

0

5

10

15

20

25

Feb Mar Apr May June July Aug Sep Otc Nov Dec

%

2008 2009 2010

Source: China State Statistics Bureau, NDRC and China Electricity Council

22

2010-Laying Foundation for New Strategy

Management Quality

Consistently Raised

Whole Year Target

Fulfilled

Power Business in Safe

Operation

Duolun Coal-chemical

Commenced

Stage One Target

Fulfilled

▼2010 is a crucial year for the Company’s development. Faced with the challenges and opportunities, the Company will go on roll over the new strategy and manage to become a competitive conglomerate energy provider as early as possible.

Source: Corporate Information

Thanks!

annual results 2009 20th april 2010 hong kong. 2009 results summary 2009 market environment review...

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