ASIA POWER CORPORATION LIMITED

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• ASIA POWER CORPORATION LIMITED
• FY2001 Full-Year Results Briefing
• by Dr. Peter Chang, President
• 12 September 2001

2
AGENDA

• The Group
• The Financials
• The Future
• Q A

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• THE GROUP

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ASIA POWER CORPORATION

• Is primarily a China independent power producer
• Is majority-owned by Singapore shareholders
• Owns, manages and operates power plants and a
  power-related high-tech company
• Has a portfolio of four power plants (with a
  total installed capacity of 337.5MW) and one
  power-related high-tech company

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CORPORATE STRUCTURE
Asia Power Corporation Limited

• 51 100
  25
  61
• 
  100
  52

Xinbao Heating Power
Changzhou Suyuan
Neijiang Hydroelectricity
Asia Tech (BVI)
Shenzhen NARI Tech
Yangzhou
Changzhou
Notes Xinbao Heating Power Heilongjiang
Asia Power Xinbao Heating Power Co.,
Ltd Neijiang Hydroelectricity Asia Power
(Neijiang) Hydroelectricity Co., Ltd Changzhou
Suyuan Changzhou Suyuan Electric Power Co.,
Ltd Asia Tech (BVI) Asia Technologies
Ltd Shenzhen NARI Tech Shenzhen NARI
Technologies Co., Ltd
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XINBAO HEATING AND POWER
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XINBAO HEATING AND POWER

• Coal-fired co-generation plant (electricity
  heat)
• Total installed capacity of 225 MW
• Serves Qiqihar, a leading industrial city in
  Heilongjiang province

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NEIJIANG HYDROELECTRICITY
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NEIJIANG HYDROELECTRICITY

• Environmentally-friendly hydropower plant
• Total installed capacity of 13.5MW
• Sells to the provincial power bureau and directly
  to end-users

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CHANGZHOU SUYUAN
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CHANGZHOU SUYUAN

• Gas turbine/ diesel fuel-fired peaking plants
  (largest peaking facility in Jiangsu province)
• Total installed capacity of 51MW (Changzhou) and
  48MW (Yangzhou)
• Serves Changzhou and Yangzhou
• Enjoys higher tariff rates during peak periods
  and, generates revenues even if electricity is
  not produced

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SHENZHEN NARI TECH
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SHENZHEN NARI TECH

• Controlling shareholder owning 61 of the 52
  equity interest in the capital of Shenzhen NARI
  Tech
• Designs, manufactures and assembles computerized
  automation systems for regulating electricity
  flows and protecting power grid systems
• Favourable market position with major products
  commanding 10-25 of market in China
• Products are sold to state-owned power grids
• Participate in state projects such as the Three
  Gorges Dam hydro-electricity project

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THE FINANCIALS
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LATEST FINANCIAL SHOWING
Profit Loss Accounts FY 30 June 2000 2001
chg (Sm) Turnover 60.894 108.562 78.3 EBITDA
15.397 20.411 32.6 Net Profit 7.360 8.262 12.3
EPS (cts) 2.39 2.58 7.9
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FINANCIAL HEALTH
Balance Sheet FY 30 June 2000 2001
chg (Sm) Total Assets 104.173 137.845 32.3 Total
Liabilities 41.462 56.627 36.6 Shldrs
Funds 44.223 51.386 16.2
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EARNINGS BREAKDOWN
FY 30 June 2001 Turnover Opg Profit (Sm) bef
ore tax int Investment Hldg 0.001 (1.549) Po
wer Plants 86.471 14.532 Power-related
Tech 22.090 5.467 Total 108.562 18.450
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KEY FINANCIAL RATIOS
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FINANCIAL HIGHLIGHTS

• Turnover up 78.3
• EBITDA up 32.6
• Net Profit up 12.3 but affected by increased
  taxation
• NTA/ Share remains unchanged at 13.82 cts
• Net Cash

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KEY FACTORS FOR GROWTH

• Rise in on-grid electricity price
• Contribution of Shenzhen NARI Tech
• Contribution of the Yangzhou power plant
• Exceptional gain from the restructuring of
  Changzhou Changya
• Change in contractual arrangement at Xinbao

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TURNOVER RECORD
(S million)
CAGR 29.2
22
EBITDA RECORD
(S million)
CAGR 27.6
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NET PROFIT RECORD
(S million)
CAGR 26.0
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THE FUTURE
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ECONOMIC OVERVIEW

• Economic growth of China still strong at 8.0
• Per capita power generation and consumption in
  China still lags far behind US, Singapore,
  Malaysia etc.
• Chinas entry into WTO and Beijings successful
  Olympic Games bid to fuel demand for power
• The Chinese authorities are deregulating the
  power industry in stages

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INDUSTRY DEVELOPMENTS

• Aim of Regulatory Authorities
• To completely separate power generation from
  power transmission and distribution
• To strive for market-driven electricity pricing
  through the establishment of seven regional pools
  to cater to the nations electricity needs
• To invest in high-voltage, large-scale power
  grids, thus enabling the transmission of
  electricity from west to east

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DEREGULATION OF THE INDUSTRY

Before
state-owned power bureaus
state-owned generation companies
state-owned power grids
Power Generation
Power Distribution
Power Transmission
Electricity Retail
After
state-owned power grids
Multi-funded generation cos, including
foreign-invested cos
Open up for competition
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BENEFITS OF DEREGULATION

• Power Generation Asia Power can buy state-owned
  generation companies at discounted prices
• Power Transmission Distribution With the
  states effort to improve power transmission
  distribution, more parts of China will be able to
  gain access to electricity thereby increasing
  demand
• Electricity Retail Asia Power is already
  selling directly to end users

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GROWTH STRATEGIES

• To grow through acquisitions by focusing on power
  and power-related businesses with proven track
  records
• To expand our operations across China and other
  Asian countries through strategic alliances with
  major players in the industry

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THANK YOU
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Q A