CHINA GAS HOLDINGS LIMITED Corporate Presentation July 2013.

CHINA GAS HOLDINGS LIMITED Corporate Presentation

July 2013

China Gas Overview

Natural Gas Services Operator

Operates in 184 city concessions (not inclusive of 11 city concessions owned by Fortune Gas, the acquisition of which is expected to complete soon) with 30-year monopolistic operating right each

Possesses intermediate and arterial gas pipeline networks of 37,408 km, serving more than 8.5 million household users and 52,050 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 12 provinces such as Guangdong, Guangxi, Fujian, Zhejiang and Jiangsu

Owns a 49% stake in Panva Gas which controls 450 self-owned retail stores and 120 franchised outlets located in provinces such as Jiangsu, Hubei, and Zhejiang. The Company retains an option to acquire the remaining 51% of Panva Gas

2

Natural Gas – Business Model

Natural gas fields

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

National or provincial pipelines

City gate

Storage tanks(spherical or cylinder)

Residentialhouseholds*

Car refueling station Commercial users*

3

Natural gas business operates on a cost-plus pricing model

Natural Gas Pricing System

END-USER TARIFF COMPONENTS

ExplorationWellhead price

TransportationTransmission tariffs

DistributionDistribution 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

CNG/LNG Refueling Stations

Strongest growth

Most profitable

Currently owns:

165 CNG stations in 38 cities & 5 LNG stations in 3 provinces

5

OPERATIONAL PERFORMANCE – NATURAL GAS

6

PIPED GAS SALES VOLUME

To

tal s

ale

s vo

lum

e (

mill

ion

m3)

Period Volume Growth: Total

FY13 21.6%

FY12 25.0%

Period Volume Growth: Natural Gas

FY13 22.7%

FY12 25.0%

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NATURAL GAS SALES VOLUME:CUSTOMER BREAKDOWN

Na

tura

l ga

s sa

les

volu

me

(m

illio

n m

3)

Customer

Sales Volume Growth in

FY13

% of Total Volume

FY13 FY12

Residential 18.5% 12.2% 12.7%

Industrial 23.0% 66.8% 66.6%

Commercial 32.1% 12.4% 11.5%

CNG Stations 14.5% 8.6% 9.2%

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NATURAL GAS CUSTOMER & TARIFF DATA

Customer

Growth

FY13Portfolio Total

FY12Portfolio Total

Change from FY12Organic Acquired

Residential 1,225,863 25,234 8,438,991 7,187,894 17.4%

Industrial 518 8 2,155 1,629 32.3%

Commercial 6,389 205 49,895 43,301 15.2%

CNG/LNG Stations 37 – 170 133 27.8%

Customer Tariffs (ex-tax) (RMB / m3) FY13 FY12Change from

FY12

Residential 2.18 2.12 +2.83%

Industrial 2.45 2.36 +3.81%

Commercial 2.48 2.46 +0.81%

CNG Stations 2.73 2.65 +3.02%

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OTHER OPERATIONAL DATA

FY13 FY12 Change from FY12

Residential Connection Fee (RMB per customer)

2,550 2,473 3.1%

Urban Population Covered (million) 65.7 62.5 5.1%

Household Penetration Rate 42.0% 37.4% 12.3%

Total Intermediate & Main Pipelines (km) 37,408 33,505 11.6%

10

NEW CITY CONCESSIONS WON

27 new concessions since 1st April 2012 bringing the total to 184 city gas concessions as at 15 June 2013 (not inclusive of 11 city concessions owned by Fortune Gas)

New concessions won in Liaoning, Heilongjiang, Hubei, Inner Mongolia, etc.

Focus on industrial cities and customers, high volume users

More concessions, largest portfolio in China

11

NATURAL GAS PROJECT LOCATIONS

12

POLICY ENVIRONMENT

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.

Strong government support

13

OPERATIONAL PERFORMANCE – LPG

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LPG: DOWNSTREAM RETAIL FOCUS

FY13 FY12

Sales Volume (tonnes) 889,342 894,000

Gross Margin (%) 5.7% 5.5%

Operating Margin (%) -0.2% 1.0%

Largest downstream retailer of LPG in China (via 49% owned Panva Gas)

Shifting the LPG focus from wholesale to downstream business to improve overall profitability and cost efficiency

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16

FINANCIAL PERFORMANCE

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FINANCIAL SUMMARY – INCOME STATEMENTHK$ millions FY13 % change FY12

Revenue 21,250.3 12.2% 18,933.6

Piped Gas Sales 9,348.9 22.0% 7,662.5

Connection Fees 3,300.7 17.7% 2,803.7

LPG Sales 7,959.2 -0.4% 7,992.8

Others 641.4 35.2% 474.5

Gross profit 4,374.0 21.3% 3,605.7

Profit after tax 2,041.3 78.8% 1,141.9

Net profit attributable to shareholders of the Company

1,764.3 84.9% 953.9

Basic EPS (HK cents) 39.37 80.9% 21.76

Basic DPS (HK cents, full year) 8.48 116.3% 3.92

Dividend payout ratio 21.5% +3.5%pts 18.0%

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FINANCIAL SUMMARY – BALANCE SHEET

HK$ millions FY13 FY12

Total Assets 35,367.6 31,874.4

Total Equity 12,836.7 10,799.0

Shareholder's Equity 11,484.6 9,742.2

Cash 4,948.8 5,528.2

Short-term Bank Debt 9,082.1 8,963.4

Of which LPG trade finance related facilities

4,805.3 5,097.6

Long-term Bank Debt 6,862.7 6,406.8

Net Gearing Ratio* 48% 44%

* 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

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FINANCIAL SUMMARY – MARGINS

FY13 FY12

EBIT Margin 15.2% 13.5%

EBITDA Margin 18.7% 16.7%

Net Profit Margin 9.6% 6.0%

Return on Equity 15.4% 9.8%

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FY2014 – 2015 GUIDANCE

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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

For the year ended March 31 FY2014 FY2015

Total piped gas volume (m3) 8.5 bn 10 bn

New residential connections 1.3 m 1.3 m

CNG stations 370 600

Downstream LPG sales (including Panva Gas) 900,000 tons 1.1m tons

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DISCLAIMER

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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.