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SEP Overview
©SEP 2016. All Rights Reserved.
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SEP Overview
Business strengths & proven track record
©SEP 2016. All Rights Reserved.
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Karachi and Shanghai – commercial centers of the
two countries
Karachi
Shanghai
 Gateway to Pakistan, commercial and financial center
Overview
of Pakistan
 With the largest securities exchange in Pakistan and
about 90% banks, financial institutions and
multinational companies headquartered in Karachi
 Significant GDP contribution to Pakistan
Population
Area
 Gateway to China, Commercial and financial center
of China
 Shanghai Stock Exchange is the main marketplace
of A-shares in China
 Many Chinese banks, financial institutions and
multinational companies headquartered in
Shanghai
24.3mm
20.0mm
About 3,500 km2, power supply area of KE is about
6,200km2
6,341km2
GDP
US$134bn
US$384bn
GDP per capita
as % of national
average
388%
263%
The Yellow
Sea
Pakistan
Japan and
South Korea
Geographic
condition
China
Arabian Sea
Iran and Gulf
Cooperation
Council
Africa
Karachi
India and Karachi Oasim
Southeast Port
Port
Asia
Shanghai
Americas
Southeast
Asia and
Oceania
The East
China Sea
 Similar coastal locations provide strategic advantage of economic development
©SEP 2016. All Rights Reserved.
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Key milestones – synchronized history of SEP and
China’s electricity generation
The lighting of
China’s first
lamp, marking
the prototype
of SEP
The operation
of first 8000 kw
unit
The operation
of first 300k kw
unit
The first 9FA
gas turbine
unit (cogeneration)
The
completion of
Suqian PV
project
Listing & Unbundling
Century-long history
1897
1882
The operation
of Tiantai
Mountain wind
power
1969
1935
2000
。。。
1992
2007
2003
2005
2013
2009
2011
In line with reform boom
Nanshi Power
Plant – the first
power company
owned by
Chinese
The operation
of the first
125k kw unit
©SEP 2016. All Rights Reserved.
The operation
of the first
600k kw unit
Huaihu coalelectricity
integration
project put into
production
 The operation of
two 1m kw power
plants in Caojing
and won national
high-quality project
gold prize
 Completed the
acquisition of
Luojing gas turbine
and Changxing gas
turbine power
plant
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SPIC is one of big five state-owned power
producers in China
Market cap
US$3.7bn
54.4%
SASAC
 SPIC’s key statistics of current underlying
operations
100%
 Total installed capacity of 107GW, 40% from
100%
clean energy
100%
China Power
International
Development
55.4%
US$2.7bn
 Coal production capacity of 80mmtpa
 China’s only integrated energy conglomerate
engaged in the investment and operation of
nuclear, traditional power and new energy
assets
Huolinhe Opencut Coal
Industry Corp Ltd of Inner
Mongolia
US$2.1bn
SPIC Yuanda
EnvironmentalProtection
US$1.5bn
Jilin Power Share
US$1.3bn
 Acquisition of Pacific Hydro in December 2015,
42.3%
Shijiazhuang
Dongfang Energy
US$1.2bn
 Moody’s / Fitch / S&P announced the award of
28.1%
China Power New
Energy Development
59.2%
43.6%
10.9%
US$700mm
 Presence in 36 countries, with businesses covering
power project investment, technical cooperation,
EPC and O&M, etc.
with hydro and wind generation assets in Australia,
Brazil, and Chile
an investment-grade international credit rating to
SPIC in November, with a rating of A2/A/A-,
respectively
 SEP is the core subsidiary of SPIC and has transparent corporate governance in place as a publicly listed company in China
 SEP is rated BBB+/Baa2/BBB (Fitch/Moody’s/S&P)
Source: Company information. Bloomberg as of 1 Dec 2016
©SEP 2016. All Rights Reserved.
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SEP Overview
Business strengths & proven track record
©SEP 2016. All Rights Reserved.
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SEP has a unique set of capabilities highly
relevant to operating KE
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 Capability of operating large-scale plants to achieve industry-outperforming
Proven
technical
expertise
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efficiency
 Strong track record of consistently reducing emissions of dust, SO2 and NOx
 Superior in-house O&M service capabilities
 IG rating from domestic and top 3 international rating agencies, with US$500mm
Strong
financing
capability
raised through offshore USD bond offering in 2015
 Signed strategic partnership agreements with CHEXIMB, CDB and other major
domestic and foreign banks as their premium client
 Outstanding partner to Sinosure
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 Solid experience in developing projects in China and overseas markets across coal,
Excellent
operation
track record
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Diverse
international
experiences
gas and renewable energy assets
 Has largely in place a flat management structure and a “3-in-1”platform for
overseas operations, an underlying PRO platform built with “Internet +”
technological expertise, and a security system for overseas operations
 Presence in over 20 countries (including frontier markets such as Iraq and Tanzania)
 Long-term committed strategy to invest in both developing and developed countries.
Operates through 18 overseas project companies and departments, with dispatched
workers up to 400 during the peak period
©SEP 2016. All Rights Reserved.
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1
Proven technical expertise (1/2)
Energy conservation
Emission control
g/kwh
g/kwh
1.2
313
298
292
291
288
2011
2012
2013
2014
Dust
0.85
SO2
0.68
284
0.46
0.16
2010年
1.05
0.94
2015
2010
0.10
2011
0.28
0.10
0.27
0.08
2012
2013
NOX
0.34
0.18
0.18
0.17
0.08
0.05
2014
2015
Select projects that showcase our technical capabilities
Caojing coal-fired project
 2 x 1000 MW ultra-
supercritical coalfired units
Power efficiency above 45%
Superior emission control in
caparison with gas-fired unit
©SEP 2016. All Rights Reserved.
Tianji coal-fired project
 Phase I of 2x600MW
supercritical coalfired units
 Phase II of 2x600MW
ultra-supercritical
coal-fired units
World’s first ultra-supercritical
coal-fired power plant with
reheat π boiler with reheat
temperature 623 degrees
Celsius
Caojing cogeneration project
 2 GE 9FA CCGT gas-
fired units
 Total capacity of
658MW
 Largest cogeneration
plant in Shanghai,
China
GE Best Performance
Unit and Best Partner
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1
Proven technical expertise (2/2)
In-house O&M capabilities
Name of project
Installed capacity
(MW)
Location
Fuel
Type
Anhui, China
Coal
Ultra-supercritical
1,320
Anhui, China
Coal
Supercritical
1,260
3 Caojing Power Plant
Shanghai, China
Coal
Ultra-Supercritical
2,000
4 Kanshan Power Plan
Jiangsu, China
Coal
Ultra-Supercritical
1,200
5 Waigaoqiao Power Plant
Shanghai, China
Coal
Subcritical
1,280
6 Wujing Power Generation
Shanghai, China
Coal
Subcritical
600
7 Wujing Power Plant
Shanghai, China
Coal
Subcritical
600
8 Caojing Cogeneration
Shanghai, China
Gas
9F
658
9 Baghdad plant in Iraq
Iraq
Oil
Subcritical
2,540
10 Turkey Atlas Coal Power
Turkey
Coal
Supercritical
1,200
11 Delimara 3
Malta
HFO
Diesel engine
Tianji Power Plant Phase 1 (Huaihu
Coal & Power)
Tianji Power Plant Phase 2 (Huaihu
2
Electric Power)
1
149
Note: the list above only represents selected O&M projects, not the full list.
©SEP 2016. All Rights Reserved.
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2
Strong financing capability
Received IG credit rating and completed US$500 offshore USD bond offering
 In Jul 2015, Fitch, Moody’s and S&P published rating report on the
Company. Fitch assigned long-term issuer rating of
“BBB+”,“Baa2” and“BBB” to the Company . All three rating
agencies assigned stable outlook on the Company
 In August 2015, the Company successfully raised US$500mm through
an offshore USD bond offering, which provides the Company a direct
access to the offshore capital markets
 The Company maintained the highest “AAA” domestic issuer rating
with a stable outlook
Partner with financial institutions on a broader scale in the overseas markets to drive
growth under a win-win situation
 PRC banks provided strong financing support to fund SEP’s overseas expansion:
 Signed Comprehensive Strategic Partnership Agreement with CDB, under which CDB will provide a maximum
of US$10bn financing supports for SEP’s overseas projects
 Signed Strategic Cooperation Agreement on Overseas Business Development with ICBC, under which ICBC
will provide a maximum of RMB20bn funding for SEP’s overseas investments
 Signed Strategic Cooperation Framework with BoC, under which BoC will provide a maximum of RMB20bn
funding for SEP’s overseas investments
 Signed Strategic Cooperation Framework with CCB, under which CCB will provide SEP a maximum of
RMB30bn financing supports (including RMB15bn onshore lines of credit, and an equivalent of RMB15bn
offshore lines of credit)
 SEP is the outstanding partner to Sinosure
©SEP 2016. All Rights Reserved.
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3
Excellent track records in business development
Cutting-edge management philosophy and policy framework
In respect of performance management, the Company has built a performance management system with EVA as the basis and KPI as the
assessment tool
 In respect of process management, we have a complete BPR process management system
 In respect of quality controls, we have a certified QHSE management system
 In respect of the development of the information system, the ERP system has been commissioned, and we have started on the development of
an “Internet+”PRO platform

Key power generation projects managed by the Company
Name of project
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Waigaoqiao No.3 Power Plant
Waigaoqiao No.2 Power Plant
Lingang Gas-fired Power
Generation
Huaihu Electric Power
Kanshan Power Plant
Shanghai Minhang Gas
Turbine
Zhenhai Gas-fired Power
Generation
Wanting Gas-fired Power
Generation
Wujing Power Plant
Wujing Power Generation
Montenegro Wind Power
Japan Osaka Nanko
Japan Hyogo Sanda
Japan Ibaraki Tsukuba
Japan Tochiki
Nasukarasuyama
Location
Fuel
Type
Shanghai, China
Shanghai, China
Coal
Coal
Ultra-supercritical
Supercritical
Shanghai, China
Anhui, China
Jiangsu, China
Gas
Coal
Coal
9F
Supercritical
Ultra-Supercritical
Shanghai, China
Gas
Zhejiang, China
Installed capacity
Project financing (c. %)
(MW)
2,000
80%
1,800
80%
1,646
1,320
1,200
80%
80%
80%
9F
908
80%
Gas
9F
789
80%
Jiangsu, China
Shanghai, China
Shanghai, China
Montenego
Japan
Japan
Japan
Gas
Coal
Coal
Wind
Solar
Solar
Solar
9F
Subcritical
Subcritical
N/A
N/A
N/A
N/A
780
600
600
46
2
5
30
80%
80%
80%
70%
80%
80%
80%
Japan
Solar
N/A
48
80%
 Leveraging SEP's strong project financing experience globally and its financing capacity to increase KE's funding
resources to fund the future CapEx plan and reduce financing costs. The above table represents only selected projects,
not the full list
©SEP 2016. All Rights Reserved.
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4
Diverse international experiences
SEP’s geographical footprints
Norway
Canada
UK
Europe
Italy
Montenegro
Malta
US
Turkey
Iraq
Egypt
Colombia
Equatorial Guinea
Pakistan
Tanzania
Mozambique
Japan
China
Bengal
Indonesia
Australia
South Africa
Chile
Argentina
 SEP actively explores overseas markets with existing presence in over 20 countries outside China
 Focused on developing high-efficiency coal-fired power capacity in developing countries and low
carbon clean energy in developed countries
 By 2020, SEP’s investments in “One Belt One Road” regions are to account for over 70% of
SEP’s total capacity
©SEP 2016. All Rights Reserved.
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Case study: SEP has reduced T&D loss of Enemalta from
14% to 9% within 1 year since acquisition
Target overview
Key achievements
T&D loss
14%
Malta’s state-owned energy company
Generation
1
2
3
4
T&D
High and low
voltage
Services
Acquisition of 33% stake in Enemalta
(completed in Dec 2014)
Acquisition of 90% stake in Delimara 3, a
149MW power plant in Malta (completed in
Dec 2014) and conversion of D3 from heavy fuel
oil to gas
70% stake in a JV with Enemalta to develop
renewable projects in European region with a
portfolio of at least 100MW solar and 200MW
wind power. Currently implementing
Montenegro wind power project
30% stake in a JV with Enemalta focusing on
energy service to Europe, the Mediterranean, the
Gulf countries and North African region
©SEP 2016. All Rights Reserved.
Dec 2014
Tariff reduction
-25%
9%
Dec 2015
Grid stability
+62%
 SEP successfully upgraded and expanded power
transmission infrastructure. EMC won the 14th
Malta Industrial Excellence Award
 Turned Enemalta from loss-making into
profitability in 2015
 SEP’s 1st project in Europe and platform for
further expansion
 Helped to upgrade Malta’s credit rating
 As EPC contractor for the conversion of D3, SEP
is qualified for EU Construction Standard
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