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Corporate Presentation December 2013

Corporate Presentation December 2013. China Gas Overview. Natural Gas Services Operator Operates in 208 city concessions (including 11 city concessions owned by Fortune Gas, the acquisition of which was completed in Aug 2013) with 30-year monopolistic operating right each

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Corporate Presentation December 2013

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  1. Corporate Presentation December 2013

  2. China Gas Overview Natural Gas Services Operator • Operates in 208 city concessions (including 11 city concessions owned by Fortune Gas, the acquisition of which was completed in Aug 2013) with 30-year monopolistic operating right each • Possesses intermediate and arterial gas pipeline networks of 44,400 km, serving more than 9.5 million household users and 56,900 industrial and commercial users LPG • The largest LPG retailer in PRC • Owns 8 LPG receiving terminals and 285,000 m3 of LPG storage capacity in PRC • Distributes LPG in 10 provinces such as Guangdong, Guangxi, Fujian, Zhejiang and Jiangsu • Owns 100% stake in Panva Gas which controls 450 self-owned retail stores and 120 franchised outlets located in provinces such as Jiangsu, Hubei, and Zhejiang. 2

  3. Natural Gas- Business Model Natural gas fields City gate National or provincial pipelines Storage tanks(spherical or cylinder) Assets owned by the Group: Main pipelines Branch pipelines Pressure regulating boxes Switches Processing stations * Customers’ pipelines which are not owned by the Group are within the customers’ premises and are not highlighted in this diagram Residentialhouseholds* Commercial users* Car refueling station 3

  4. Natural Gas Pricing System Natural gas business operates on a cost-plus pricing model END-USER TARIFF COMPONENTS Exploration Wellhead price Transportation Transmission tariffs Distribution Distribution cost + Return NDRC Approval Local Price Bureau Approval • 2 main sources of revenue • Gas connection: one-off payment mainly from residential users, less so from industrial and commercial users • Sale of piped gas: recurring income at tariffs approved by the local governments 4

  5. CNG/LNG Refueling Stations • Strongest growth • Most profitable • Currently owns: • 208 CNG stations in 50 cities & 16 LNG stations in 4 provinces 5

  6. OPERATIONAL PERFORMANCE

  7. New City Concessions Won More concessions, largest portfolio in China • 29 new concessions since 1st April 2013 bringing the total to 208 city gas concessions as at 18 November 2013 • New concessions won in Liaoning, Heilongjiang, Hubei, Inner Mongolia, etc. • Focus on industrial cities and customers, high volume users 7

  8. Natural Gas - Volume Growth Total sales volume (million m3) 8

  9. Natural Gas Volume- Customer Breakdown Natural gas sales volume (million m3) 9

  10. Natural Gas - Customer & Tariff 10

  11. Natural Gas- Other Operational Data 11

  12. Policy Environment Strong government support • In Oct. 2012, NDRC issued the natural gas application policy, promoting the use of natural gas (CNG/LNG) for vehicles and vessels • The PRC’s “12th Five-Year Plan” for energy development published in Jan. 2013 indicates natural gas supply in China will surpass 260 billion m3 by 2015, increasing by 20% per year. 12

  13. NATURAL GAS PROJECT LOCATIONS 13

  14. LPG • Shifting the LPG focus from wholesale to downstream business to improve overall profitability and cost efficiency • Largest downstream retailer of LPG in China * Not inclusive of the operation of Panva Gas, in which China Gas owned 49% interest ** Inclusive of the operation of Panva Gas, in which China Gas owns 100% interest 14

  15. 15

  16. FINANCIAL PERFORMANCE

  17. Financial Summary - Income Statement 17

  18. Financial Summary - Balance Sheet * Net gearing ratio is computed based on total net borrowings (total borrowings less cash and trade finances in relation to LPG business) as a percentage of net assets 18

  19. Financial Summary - Margins 19

  20. Guidance FY2014 - 2015

  21. FY2014 - 2015 Guidance • Enhance organic growth in existing city gas projects • Increase industrial and commercial customer connections as upstream supplies increase • Expand “Hub-Satellite City” investment program to add more concessions to our portfolio • Expedite the rollout of CNG and LNG stations for vehicles and vessels • Focus on higher margin retail LPG distribution 21

  22. DISCLAIMER Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. All the directors of China Gas jointly and severally accept full responsibility for the accuracy of the information contained in these materials and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in these materials have been arrived at after due and careful consideration and there are no other facts not contained in these materials, the omission of which would make any statement in these materials misleading. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice. 22

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