Our Business Model and Value Creation Journey...Intellectual Capital VALUE CREATED 80,225 million 6...
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CAPITALS Manufactured Capital 15,281 km of transmission and high voltage distribution lines, and primary and secondary substations in Hong Kong 14,484 18,622 equity MW of generating capacity Solar 1.6% Coal 61.2% Wind 12.4% Nuclear 2.6% Gas 18.5% Hydro 2.6% Oil 1.1% Natural Capital 7,428 employees Human Capital Shareholders’ Funds HK$ 98,010 million Total Borrowings HK$ 51,646 million Financial Capital Fuel Use 453,904 TJ 86,787 TJ Coal Gas Oil 4,162 TJ Build Trust Social and Relationship Capital Share Knowledge Innovation and Technology Improvement of Process and Platform Research and Development Intellectual Capital Our Business Model and Value Creation Journey CLP’s core business is providing reliable and safe electricity to our customers at a reasonable price and with minimum impact to the environment. As the world moves into a smarter and greener era, we recognise that helping our customers to manage their electricity use more efficiently is of increasing importance. To achieve this, we draw on all of our resources, experience and talent at CLP, and apply the highest standard of governance to provide our customers with choice and quality service and create values for all of our stakeholders along the way. The following diagram demonstrates how CLP created value and benefits for our stakeholders in 2016. 7 CLP Holdings 2016 Annual Report
Transcript of Our Business Model and Value Creation Journey...Intellectual Capital VALUE CREATED 80,225 million 6...
million
Economic Value Retained
7
HK$
13,369million
Directly benefitted
over 359,000 people
and 373 organisations
574 programmesimplemented
Staff volunteered
13,302 hours
Community
Notes: 1 From power stations in which CLP has invested and capacity purchase arrangements
3 Average of the past 36 months 4 Including 2.52 million in Hong Kong and 2.63 million in Australia5 Economic value generated consists of revenue (HK$79,434 million) and share of profits (HK$791 million). Share of profits represents share of results (net of income tax) from joint ventures and associates netted with earnings attributable to other non-controlling interests
0.82 kg CO2 /kWhcarbon intensityof CLP’s electricity generation
Environment
16.6% of CLP’sequity generating capacity
Renewable Energy
3,090 MW
19.2% of CLP’sequity generating capacity
Non-carbonEmitting Energy
3,582 MW
Over 99.999%supply reliability in Hong Kong
1.48 unplanned customer minuteslost in Hong Kong 3
millioncustomer accounts 4 5.15
Total Sent Out 1
133,275million kWh
Community
Donations
HK$
13
MainlandChina
58,487
India5,216
SoutheastAsia & Taiwan
8,941
Australia20,647
Hong Kong39,984
(million kWh)
Customers
Economic ValueGenerated 5
HK$ Fuel and OtherOperating Costs
HK$
51,474million
Suppliers andContractors
Economic Value Distributed
Staff Expenses
HK$
3,892million
Employees
Current Income Tax
HK$
2,032million
Governmentand Regulators
Capital Providers
2,371 million
Total Dividends
HK$ 7,074 millionper share2.80HK$
Finance Costs 6
HK$
Corporate Governance
Effective Board Oversight
Transparent ShareholderCommunication
Do-the-right-thing Culture
High-integrityGovernance Framework
Operate Power Plants
Design and Build Power Stations
Customer Promise and Experience
Smart Energy Use
Generation
Delivery
Customer
Design and Build Transmission andDistribution Networks
Operate Transmission and Distribution Networks
12,334 12,711million
Operating Earnings HK$ Total Earnings
million
HK$
CLP
CAPITALS
Manufactured Capital 15,281 kmof transmission andhigh voltage distribution lines, and
primary and secondarysubstations in Hong Kong
14,48418,622equity MW
of generating capacity
Solar 1.6%
Coal 61.2%
Wind 12.4%
Nuclear 2.6%
Gas 18.5%
Hydro 2.6%
Oil 1.1%
Natural Capital
7,428 employees
Human Capital
Shareholders’ Funds
HK$98,010 millionTotal Borrowings
HK$51,646 million
Financial Capital
Fuel Use
453,904 TJ
86,787 TJ
Coal
Gas
Oil 4,162 TJ
Build Trust
Social and Relationship Capital
Share Knowledge
Innovation and Technology
Improvement ofProcess and Platform
Research andDevelopment
Intellectual Capital
VALUE CREATED
80,225million
6 Netted with finance income and include payments made to perpetual capital securities holders7 Represents earnings attributable to shareholders (before depreciation, amortisation and deferred tax) for the year retained
Total Sent Out by Region
Equity Sent Out 2
79,583million kWh
2 On equity basis and capacity purchase arrangements
Our Business Model and Value Creation Journey
CLP’s core business is providing reliable and safe electricity to our customers at a reasonable price and with minimum impact to the environment. As the world moves into a smarter and greener era, we recognise that helping our customers to manage their electricity use more efficiently is of increasing importance. To achieve this, we draw on all of our resources, experience and talent at CLP, and apply the highest standard of governance to provide our customers with choice and quality service and create values for all of our stakeholders along the way. The following diagram demonstrates how CLP created value and benefits for our stakeholders in 2016.
7 CLP Holdings 2016 Annual Report
million
Economic Value Retained
7
HK$
13,369million
Directly benefitted
over 359,000 people
and 373 organisations
574 programmesimplemented
Staff volunteered
13,302 hours
Community
Notes: 1 From power stations in which CLP has invested and capacity purchase arrangements
3 Average of the past 36 months 4 Including 2.52 million in Hong Kong and 2.63 million in Australia5 Economic value generated consists of revenue (HK$79,434 million) and share of profits (HK$791 million). Share of profits represents share of results (net of income tax) from joint ventures and associates netted with earnings attributable to other non-controlling interests
0.82 kg CO2 /kWhcarbon intensityof CLP’s electricity generation
Environment
16.6% of CLP’sequity generating capacity
Renewable Energy
3,090 MW
19.2% of CLP’sequity generating capacity
Non-carbonEmitting Energy
3,582 MW
Over 99.999%supply reliability in Hong Kong
1.48 unplanned customer minuteslost in Hong Kong 3
millioncustomer accounts 4 5.15
Total Sent Out 1
133,275million kWh
Community
Donations
HK$
13
MainlandChina
58,487
India5,216
SoutheastAsia & Taiwan
8,941
Australia20,647
Hong Kong39,984
(million kWh)
Customers
Economic ValueGenerated 5
HK$ Fuel and OtherOperating Costs
HK$
51,474million
Suppliers andContractors
Economic Value Distributed
Staff Expenses
HK$
3,892million
Employees
Current Income Tax
HK$
2,032million
Governmentand Regulators
Capital Providers
2,371 million
Total Dividends
HK$ 7,074 millionper share2.80HK$
Finance Costs 6
HK$
Corporate Governance
Effective Board Oversight
Transparent ShareholderCommunication
Do-the-right-thing Culture
High-integrityGovernance Framework
Operate Power Plants
Design and Build Power Stations
Customer Promise and Experience
Smart Energy Use
Generation
Delivery
Customer
Design and Build Transmission andDistribution Networks
Operate Transmission and Distribution Networks
12,334 12,711million
Operating Earnings HK$ Total Earnings
million
HK$
CLP
CAPITALS
Manufactured Capital 15,281 kmof transmission andhigh voltage distribution lines, and
primary and secondarysubstations in Hong Kong
14,48418,622equity MW
of generating capacity
Solar 1.6%
Coal 61.2%
Wind 12.4%
Nuclear 2.6%
Gas 18.5%
Hydro 2.6%
Oil 1.1%
Natural Capital
7,428 employees
Human Capital
Shareholders’ Funds
HK$98,010 millionTotal Borrowings
HK$51,646 million
Financial Capital
Fuel Use
453,904 TJ
86,787 TJ
Coal
Gas
Oil 4,162 TJ
Build Trust
Social and Relationship Capital
Share Knowledge
Innovation and Technology
Improvement ofProcess and Platform
Research andDevelopment
Intellectual Capital
VALUE CREATED
80,225million
6 Netted with finance income and include payments made to perpetual capital securities holders7 Represents earnings attributable to shareholders (before depreciation, amortisation and deferred tax) for the year retained
Total Sent Out by Region
Equity Sent Out 2
79,583million kWh
2 On equity basis and capacity purchase arrangements
8 CLP Holdings 2016 Annual Report
million
Economic Value Retained
7
HK$
13,369million
Directly benefitted
over 359,000 people
and 373 organisations
574 programmesimplemented
Staff volunteered
13,302 hours
Community
Notes: 1 From power stations in which CLP has invested and capacity purchase arrangements
3 Average of the past 36 months 4 Including 2.52 million in Hong Kong and 2.63 million in Australia5 Economic value generated consists of revenue (HK$79,434 million) and share of profits (HK$791 million). Share of profits represents share of results (net of income tax) from joint ventures and associates netted with earnings attributable to other non-controlling interests
0.82 kg CO2 /kWhcarbon intensityof CLP’s electricity generation
Environment
16.6% of CLP’sequity generating capacity
Renewable Energy
3,090 MW
19.2% of CLP’sequity generating capacity
Non-carbonEmitting Energy
3,582 MW
Over 99.999%supply reliability in Hong Kong
1.48 unplanned customer minuteslost in Hong Kong 3
millioncustomer accounts 4 5.15
Total Sent Out 1
133,275million kWh
Community
Donations
HK$
13
MainlandChina
58,487
India5,216
SoutheastAsia & Taiwan
8,941
Australia20,647
Hong Kong39,984
(million kWh)
Customers
Economic ValueGenerated 5
HK$ Fuel and OtherOperating Costs
HK$
51,474million
Suppliers andContractors
Economic Value Distributed
Staff Expenses
HK$
3,892million
Employees
Current Income Tax
HK$
2,032million
Governmentand Regulators
Capital Providers
2,371 million
Total Dividends
HK$ 7,074 millionper share2.80HK$
Finance Costs 6
HK$
Corporate Governance
Effective Board Oversight
Transparent ShareholderCommunication
Do-the-right-thing Culture
High-integrityGovernance Framework
Operate Power Plants
Design and Build Power Stations
Customer Promise and Experience
Smart Energy Use
Generation
Delivery
Customer
Design and Build Transmission andDistribution Networks
Operate Transmission and Distribution Networks
12,334 12,711million
Operating Earnings HK$ Total Earnings
million
HK$
CLP
CAPITALS
Manufactured Capital 15,281 kmof transmission andhigh voltage distribution lines, and
primary and secondarysubstations in Hong Kong
14,48418,622equity MW
of generating capacity
Solar 1.6%
Coal 61.2%
Wind 12.4%
Nuclear 2.6%
Gas 18.5%
Hydro 2.6%
Oil 1.1%
Natural Capital
7,428 employees
Human Capital
Shareholders’ Funds
HK$98,010 millionTotal Borrowings
HK$51,646 million
Financial Capital
Fuel Use
453,904 TJ
86,787 TJ
Coal
Gas
Oil 4,162 TJ
Build Trust
Social and Relationship Capital
Share Knowledge
Innovation and Technology
Improvement ofProcess and Platform
Research andDevelopment
Intellectual Capital
VALUE CREATED
80,225million
6 Netted with finance income and include payments made to perpetual capital securities holders7 Represents earnings attributable to shareholders (before depreciation, amortisation and deferred tax) for the year retained
Total Sent Out by Region
Equity Sent Out 2
79,583million kWh
2 On equity basis and capacity purchase arrangements
9CLP Holdings 2016 Annual Report
million
Economic Value Retained
7
HK$
13,369million
Directly benefitted
over 359,000 people
and 373 organisations
574 programmesimplemented
Staff volunteered
13,302 hours
Community
Notes: 1 From power stations in which CLP has invested and capacity purchase arrangements
3 Average of the past 36 months 4 Including 2.52 million in Hong Kong and 2.63 million in Australia5 Economic value generated consists of revenue (HK$79,434 million) and share of profits (HK$791 million). Share of profits represents share of results (net of income tax) from joint ventures and associates netted with earnings attributable to other non-controlling interests
0.82 kg CO2 /kWhcarbon intensityof CLP’s electricity generation
Environment
16.6% of CLP’sequity generating capacity
Renewable Energy
3,090 MW
19.2% of CLP’sequity generating capacity
Non-carbonEmitting Energy
3,582 MW
Over 99.999%supply reliability in Hong Kong
1.48 unplanned customer minuteslost in Hong Kong 3
millioncustomer accounts 4 5.15
Total Sent Out 1
133,275million kWh
Community
Donations
HK$
13
MainlandChina
58,487
India5,216
SoutheastAsia & Taiwan
8,941
Australia20,647
Hong Kong39,984
(million kWh)
Customers
Economic ValueGenerated 5
HK$ Fuel and OtherOperating Costs
HK$
51,474million
Suppliers andContractors
Economic Value Distributed
Staff Expenses
HK$
3,892million
Employees
Current Income Tax
HK$
2,032million
Governmentand Regulators
Capital Providers
2,371 million
Total Dividends
HK$ 7,074 millionper share2.80HK$
Finance Costs 6
HK$
Corporate Governance
Effective Board Oversight
Transparent ShareholderCommunication
Do-the-right-thing Culture
High-integrityGovernance Framework
Operate Power Plants
Design and Build Power Stations
Customer Promise and Experience
Smart Energy Use
Generation
Delivery
Customer
Design and Build Transmission andDistribution Networks
Operate Transmission and Distribution Networks
12,334 12,711million
Operating Earnings HK$ Total Earnings
million
HK$
CLP
CAPITALS
Manufactured Capital 15,281 kmof transmission andhigh voltage distribution lines, and
primary and secondarysubstations in Hong Kong
14,48418,622equity MW
of generating capacity
Solar 1.6%
Coal 61.2%
Wind 12.4%
Nuclear 2.6%
Gas 18.5%
Hydro 2.6%
Oil 1.1%
Natural Capital
7,428 employees
Human Capital
Shareholders’ Funds
HK$98,010 millionTotal Borrowings
HK$51,646 million
Financial Capital
Fuel Use
453,904 TJ
86,787 TJ
Coal
Gas
Oil 4,162 TJ
Build Trust
Social and Relationship Capital
Share Knowledge
Innovation and Technology
Improvement ofProcess and Platform
Research andDevelopment
Intellectual Capital
VALUE CREATED
80,225million
6 Netted with finance income and include payments made to perpetual capital securities holders7 Represents earnings attributable to shareholders (before depreciation, amortisation and deferred tax) for the year retained
Total Sent Out by Region
Equity Sent Out 2
79,583million kWh
2 On equity basis and capacity purchase arrangements
10CLP Holdings 2016 Annual Report
Gross Capacity and CLP Net Capacity by Market:
Tallawarra
Mainland China – Shenzhen
Castle Peak CLP PowerHong Kong
Penny’s Bay Kowloon
Black Point
Lantau Island
New Territories
Samana I
Samana II
Mahidad
Khandke
Harapanahalli
INDIA
Laiwu I & II
ChangdaoWeihai I & II
Zhanhua I & II
Ho-Ping
Jiangbian
Shenmu
Heze IILiaocheng I
Shiheng I & IIJinchang
Huai’an
Nanao II & III
HongKong
Daya Bay
Penglai I
Changling II
Lopburi
Veltoor
Paguthan
Qian’an I & II
Cathedral Rocks
NewportYallourn
EnergyAustralia
NarrabriMount Piper
Jeeralang
Andhra Lake
Saundatti
MAINLANDCHINA
AUSTRALIA
HONG KONG
CGN Wind
Bhakrani
Tejuva
Sipla
Theni I
Theni II
HallettPine Dale
Wilga Park
Chongming
SNGPC
Sihong
Chandgarh
THAILAND
TAIWAN
Assets wholly or majority-owned by CLP
Assets in which CLP has no majority shareholding
JhajjarDali Yang_er
PSDC
Huaiji
Sandu I & II
Xicun I & II
Huadian Laizhou I
CLP Laizhou I & II
Mazongshan
Fangchenggang I & II
Xundian I
Dongying HekouLijin I & II
Rongcheng I, II & III
Qujiagou
Shuangliao I & IIPanshan
Sanhe I & IISuizhong I & II
Zhungeer II & III
Datong
Jath
Yermala
Coal
Generation
Gas
Nuclear
Wind
Hydro
Solar
Other
Customer Service
Transmission& DistributionNetwork
Hong KongMainland ChinaIndiaSoutheast Asia and TaiwanAustraliaTotal
*Equity basis and capacity purchase arrangements
A detailed list of CLP’s investments
Gross Capacity7,483MW
20,974MW3,029MW 1,383MW5,087MW
37,956MW
CLP Net Capacity*7,483MW8,069MW2,978MW
285MW4,966MW
23,781MW
11CLP Holdings 2016 Annual Report
