20132013
1
Expanding Regional Presence
Guilin & Lipu –
2 LPG Bottling Plants & retail outlets
Wuzhou & Cangwu –
2 LPG Bottling Plants & retail outlets
Maoming –
1 LPG Bottling Plant & retail outlets
Zhuhai –
1st class sea terminal; 2 LPG Bottling Plant & retail outlets
Oil products Storage in construction (shall be operative in early 2013)
Philippines & Vietnam –
Re-exporting markets of LPG
Regular supply on term contract basis
Hong Kong –
Obtained RGSC License in Sept. 2011; scheduled to start bottled LPG distribution in Nov. 2012
Bunker Station services in May 2012
Macau –
Conducting bottled LPG retailing since 2010
To provide cross border bottle refilling services
Deqing –
1 LPG Bottling Plant & retail outlets
Qingyuan & Huadu –
3 LPG Bottling Plants & retail outlets
Guangzhou –
17 Auto-gas Stations operative in 2012
4 LPG Bottling Plants & retail outlets
Shenzhen –
1 LPG Bottling Plant & retail outlets;
Providing cross border bottle refilling services
2
Expanding Product Coverage and Distribution Channels
Ordinary C3 – C4 Mixture
Auto – gas
Specific C3 – C4 Mixture
Natural Gas
Oil Products
Liquefied Petroleum Gas (“LPG”)
Auto-gas refueling stations Buses \ Taxies
Tanker trucks or bottles
Labor delivery in bottles Households \ Commercials
Industrial Users
Gasoline Stations
Gasoline
Diesel
IF380 & IF180
MGO
Bunkers
Bunker Stations
Cargo Ships \ Cruise Liners
Barges \ Lighters
Trucks \ Sedans
LNG
Pipeline Network
Refueling Stations
CNG Households \ Commercials
Buses \ Industrial Users
To develop in cooperation with a Chinese Oil Major in near future
Products and distribution channels developed
33
443 437
50235442
99
0
1000
2000
3000
4000
5000
6000
7000
1H2011 1H2012
Electronics LPG Petroleum
HK$ millionREVENUE
165
229
0
50
100
150
200
250
1H2011 1H2012
Net Earnings
Group Net Earnings
9.3%
38.7%
HK$ million
709
819
20
600
650
700
750
800
850
1H2011 1H2012
LPG Petroleum
ENERGY SALES VOLUME
18%
2011 full year 1H 2012
Annualized Turnover/ Fixed Assets
HK$ 4.6: HK$ 1.0 HK$ 5.1: HK$ 1.0
Annualized PE Ratio
7X 9X
Annualized earnings per share
HK$23.45 cents HK$35.08 cents
‘000 tons
Interim Financial Results - Achieved Record Earnings
44
Unit: HK$ million 1H2011 % Increase 1H2012 %
LPG Gross Profit 176.0 83% +182% 496.4 91%
Petroleum Gross Profit 0 0% na 1.3 0%
Electronics Gross Profit 35.7 17% +36% 47.2 9%
Total Gross Profit 211.7 100% +157% 544.9 100%
Gross Margin 3.9% 9.1%
Interim Financial Results - Prominent improvement in Gross Profit
55
LPG ‘000 tons1H2011 1H2012 Growth Rate
Wholesale – Overseas customer 249 219 -12%
Wholesale – Industrial Customers 184 278 +51%
Wholesale – Auto-gas Operators 97 8.3 Largely transfer to retail
Wholesale – Other plants/terminals 68 62.5 -8%
Wholesale Total 598 567.8 -5%
Retail – Bottled LPG 111 134.8 +22.5%
Retail – Auto-gas refueling 0 116.5 New
Retail Total 111 251.3 +126%
All Total 709 819.1 +16%
Major contributors to the Gross Profit Improvement
66
Earnings Drivers for the ensuing years
1) Expansion of product offering1) Expansion of product offering
2) Expansion into auto-gas refueling business to capture the higher margin in the retail market
2) Expansion into auto-gas refueling business to capture the higher margin in the retail market
3) Entering Hong Kong’s LPG retail market3) Entering Hong Kong’s LPG retail market
In addition to LPG, we started to offer oil products leveraging on our existingSupply chain and client base.
Full Integration of the 17 auto-gas refueling stations in Guangzhou, with further expansion through the cooperation with Sinopec Guangdong.
To launch in full scale bottled LPG distribution in Hong Kong soon; leveraging on lower cost compared to local competitors.
Our vision is to become a leading integrated Our vision is to become a leading integrated
fuel supplier in Southern Chinafuel supplier in Southern China
77
Appendix 1
HK$ million 2011 1H2012
Cash 878 8% 793 7%
Current Assets 8,433 79% 9,070 79%
Fixed Assets 2,189 21% 2,371 21%
Total Assets 10,622 100% 11,441 100%
Current Liabilities 8,308 78% 8,909 78%
LT Liabilities 466 4% 496 4%
Equity 1,848 18% 2,036 18%
Total liabilities + Equity 10,622 100% 11,441 100%
FY2011 (Full Year) HY2012 (Half Year)
Inventory Turnaround Time 16 days 21 days
A/C receivables Turnaround Time 77 days 51 days
Long term Liabilities / Fixed Assets 21.3% 14.9%
Current Ratio 101% 102%
NAV/share HK$1.42 HK$1.56
Annualized Earnings/share HK$0.24 HK$0.35
Return on Equity 16.4% 22.5%
Number of shares outstanding 1,305,853,374 1,305,853,374
8
• Pretax Profit Margin has markedly improved from 1.8% to 3.3% in the latest year
• Globally Ranked 187th by turnover
• Globally ranked 115th by profit before tax
Appendix 2
9
1. Income Stream::::Not relying on one-off connection fee income; sales growth and profitability are both sustainable
2. Dividend Policy::::Along with increase in profit, dividend yield is anticipated to reach 3% in 2012; further increase in ensuing years
3. Market Cap::::Current market cap is about 24.7% of Enterprise value estimated by Bloomberg.com – a hugh growth potential
4. International recognition: Always appear in LPG international conferences (by invitation)
5. Financial support: Ample support by both the international and major domestic banks and financial institutions.
70.0%72.9%49.1%(A) / (B)
HK$39.9 billionHK$48 billionHK$11.2 billion(B) Enterprise Value (estimated by Bloomberg.com)
2.37X3.07X2.70XMarket Cap / NAV
HK$11,842 millionHK$11,447 millionHK$2,036 millionNAV
HK 218.9 cents
14.76X
HK$35 billion @32.7
34.59%
83.66%
HK$0.91 : HK$1.0
HK$23,177 million
HK$21,057 million
ENN Energy
15.03X9.8XPE Ratio
HK 42.0 centsHK 34.9 centsEarnings per share
HK$28.1 billion @6.16HK$5.5 billion @4.23(A) Market Cap
HK$23,033 millionHK$2,371 millionFixed Assets
HK$17,133 millionHK$11,956 millionTurnover
30.45%20.32%L-T bank borrowings / Fixed Assets
71.17%101.8%Current Ratio
HK$0.74 : HK$1.0HK$5.1 : HK$1.0Turnover / Fixed Assets
China GasNewOcean Energy
Appendix 3
10
Disclaimer
The presentation prepared by NewOcean Energy Holdings Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to for many basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without seeking professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements represent the Company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Certain statements, such as those that include the words “potential”, “estimated”, “expects”, “anticipates”, “objective”, “intends”, “plans”, “believes”, “estimates”, and similar expressions, or variations on such expressions may be considered “forward-looking statements”. Forward-looking statements involve inherent risks and uncertainties. Readers should be cautioned that a number of factors could cause actual results to differ in some instances materially, from those anticipated or implied in any forward-looking statement. Forward-looking statements speak only as of the date they are made, and it should not be assumed that they have been reviewed or updated in the light of new information or future events.