CLP Group 2009 Final Results

25 February 2010

Disclaimer

This presentation contains some comments about future events including our expectations about the performance of CLP Group's business. The comments are not audited and are based on a number of factors that we cannot control. We cannot be certain that the comments will be accurate or complete and so they should not be relied on. As circumstances change we will update our website at www.clpgroup.comand, where relevant, notify the Hong Kong Stock Exchange.

1

142(327)Others, net

(21%)8,5606,786Hong Kong business99%1,0452,078Overseas businesses

HK$M 2009 2008 Change

Operating earnings 8,537 9,747 (12%)Total earnings

Operating earnings per share (HK$)

8,196

3.55

10,423

4.05

(21%)

Total earnings per share (HK$) 3.41 4.33

Dividends per share (HK$)Interim dividends 1.56 1.56Final dividend 0.92 0.92

Total dividends 2.48 2.48

Financial Performance

Strong performance across the Group –impacted by lower permitted SoC return

2

Earnings Details 2008 Change2009HK$M

451(363)Non-recurring items for Australia

-22Non-recurring items for Southeast Asia & Taiwan

225-Non-recurring items for China

Hong Kong 5,964 7,549 (21%)

PRC investments supporting HK business 748 931

Sales from Hong Kong to China 74 80

Australia 736 604

China 371 5

India 446 320

Southeast Asia & Taiwan 525 116

Other earnings 107 508

Unallocated net finance costs (21) (21)

Unallocated Group expenses (413) (345)

Operating Earnings before one-off items 8,537 9,747 (12%)

Total earnings 8,196 10,423 (21%)

3

Financial Performance

Good financial performance characterised by strong 2H upturn Hong Kong: First full year earnings impact of lower permitted return on Hong Kong SoC business Australia: Continuing improvement in financial and operating performanceChina: Significant rebound in 2H reflecting improved economic growth and electricity demandIndia: Steady operating earningsSoutheast Asia & Taiwan: Higher earnings due to strong performance in Ho-Ping

4

Hong Kong

Earnings reduction of 21% to HK$5,964m− First full year with lower permitted return under new SoC− Rebase of earnings following reduction in permitted return – steady growth

is anticipated from this lower baseCapex of HK$7,798m in line with Development Plan − CLP Power: HK$4,447m − CAPCO: HK$3,351m (CLP’s share: HK$1,341m)

Electricity sales increased by 2%− Local sales increased by 1.7% primarily due to warmer weather− Sales to China increased by 5% due to rebound in electricity consumption

in 2HTariff increase by 2.6% effective 1 Jan 2010− First time increase in basic tariff in more than 10 years− The new basic tariff is lower than that in 1996

5

Hong Kong

Obtained approval for extension of nuclear energy supply from Daya Bay for another 20 yearsGood progress on gas supply arrangements−Progressing permitting, design and commercial

arrangements for the construction of a new pipeline for gas delivery

Good progress on Emissions Control Project at Castle Peak “B” Power Station−Project commissioning in phases from 2009 to 2011

Progressing feasibility study of offshore wind farm development −Target completion of site data collection by 2012

6

Hong Kong – Going Forward

Stable regulatory regime through 2018 Progress implementation of Inter-governmental MOUGovernment’s environmental objectives will require new investment in clean energy infrastructure –including transition away from coal-fired generation over time towards increasing nuclear energy and natural gas-fired generationDelivery of Government’s environmental objectives will also involve closer integration with the electricity system in Southern China

7

Australia – Financials

Improvement in core operating earnings – continuing the positive trend in earnings growth from 2007Increased operating earnings result from improved performance on core operations− Generation: Record high generation for Yallourn− Retail: Profit improvement program continues to deliver results coupled with higher retail margins− Offset by prudent provision for doubtful debt and a 7% drop in average exchange rate in 2009

Financing− Refinancing the rollover of maturing term debt in Aug 09 despite difficult credit markets− S&P removed the negative outlook of TRUenergy upon the completion of refinancing

Full provision for investment in Solar Systems of HK$346m

8

(24)(23)Share of results of Solar Systems

127(1)Coal mine subsidence

15(31)Share of results of Roaring 40s

(19)(38)Development expenditure604736

-(346)Provision for Solar Systems

432-Gain on sale of SEAGas

HK$m 2009 2008TRUenergy operating earnings 828 632

Amortisation of TIPS contracts (16) (108)

Total earnings 373 1,055

Carbon Pollution Reduction Scheme

Introduction of carbon legislation remains a considerable overhang over Yallourn – significant negative impact if the proposed CPRS legislation is implemented in its current formCPRS legislation has had a troubled history in Parliament as it has been the subject of considerable disagreement between the Government, the Opposition and the GreensAlthough the position is uncertain, it seems unlikely that any carbon legislation will move forward until after Federal election later this yearTRUenergy continues to actively engage with all political stakeholders to promote policy objectives which respect the value of our investment and would allow TRUenergy to contribute to the medium term transitioning to cleaner generation

9

Australia – Going Forward

Continued focus on operations− Operational improvement through retail profit improvement

program, and continued good generation performance at Yallourn and Tallawarra

− Review and implement opportunities to enter Queensland and NSW retail markets through organic growth

Cautious approach towards new capital investment− Looking to permit potential gas-fired generation sites at Tallawarra

and Victoria − Construction of further wind projects on hold pending increase in

market price of RECs− Consider to review NSW privatisation opportunities

10

Chinese Mainland – Financials

Renewables projects

(80)(89)Operating expenditure

48403Operating earnings

52425Coal-fired projects

1277- Wind

696- Hydro

(5)(16)- Biomass

-(15)Impairment of Boxing biomass project

(26)(7)Jiangbian pre-operationexpenses

HK$m 2009 2008

Development expenditure (10) (17)

Total 371 5

CoalMajor turnaround in 2H mainly due to improved earnings from coal-fired units− Significant improvement in

earnings from Fangchenggang (2009: $238m profit; 1H09: $77m loss) mainly due to higher output and tariff

Wind Higher contributions due to increase in operational wind capacity

Hydro Lower earnings due to rainfall shortages

11

Chinese Mainland – Going Forward

Repositioning towards low carbon generation niche strategy –looking to rationalise of legacy coal assets without operational controlDisciplined growth in wind energy− Continue to develop majority-owned projects− Build out expansion of existing minority-owned project sites− Completed strategic acquisition in CGN Wind

CLP’s wind energy expertise demonstrated and further strengthened by first wholly-owned project in Jilin Qian’anProgress construction of wholly-owned hydro project in Sichuan Jiangbian – on target for commissioning in 2011Reviewing opportunities for further participation in China nuclear with CGNPC, building on existing 25% stake in Daya BayPursuing expansion opportunities for Fangchenggang

12

India – Financials

1(8)Renewables - wind

(4)11Unrealised exchange gain / (loss) on FX protection in GPEC PPA

(50)(52)Dividend distribution tax provision

-171Net gain on Jhajjar foreign exchange hedging

5222Interest income

HK$m 2009 2008

GPEC operating earnings 350 325

Pre-operating expenses (wind and Jhajjar projects) (48) (4)

Total earnings 446 320

GPEC: steady earnings, reliable operations, long term gas supplies in placeHigher operating earnings of GPEC in 2009− Fewer planned outages leading to lower O&M expenses and higher incentive revenue on availability− Partly offset by 11% drop in average exchange rate in 2009− Ongoing legal dispute with offtaker

Good progress on the construction of Jhajjar Project – on target COD in 2011/2012Net gain on Jhajjar foreign exchange hedging represented the one-time exchange gainfrom financial derivatives arranged for the hedging of Jhajjar EPC contract, but did not qualify for accounting hedge

13

India – Going Forward

Strong growth in electricity demandSpeed and scale of CLP’s growth needs to be consistent with organisational and capital resourcesPriority on completion of Jhajjar on time and within budgetSignificant and rapid growth of wind portfolio – CLP is the largest wind investor / developer in India with a portfolio of 446MW wholly-owned wind projects and significant development pipeline− 101 MW in operation− 345 MW will commission in 2010

Positioning to expand GPEC, but still subject to reliable gas supplyBidding for transmission projects in reforming statesPositioning for further coal-fired generation subject to satisfactory progress in JhajjarGrowth opportunities and associated capital demand create a need to review funding options

14

Southeast Asia & Taiwan – Financials

15

Strong financial performanceHigher earnings from Ho-Ping

− Higher energy charge as a result of a time lag in recovery of higher coal cost in 2008 − Record generation on excellent availability

EGCO benefited from higher contribution from Kaeng Khoi 2 unit 2 and full year contribution from Quezon and fair value gain on financial derivativesRecognized a gain of HK$153 million for disposal of Power Generation Services Ltd., the O&M company for BLCP which CLP owned 60% interestThe HK$131 million provision for OneEnergy represented a provision for EGCO’s carrying value in OneEnergy given the PPAs of REGCO and KEGCO are nearing completion

119187EGCO earnings

5-Interest income

(33)(14)Development expenditure

(47)(42)Operating expenditure

116525-153Gain on sale of PGS-(131)Provision for OneEnergy

HK$m 2009 2008Ho-Ping earnings 394 72

Total earnings 547 116

Southeast Asia & Taiwan – Going Forward

Strong medium to long term prospects which present attractive growth opportunities available in regional marketsAim to increase economic stake and management participation in EGCOVietnam projects – substantial and meaningful opportunities, but challenging− Leverage CLP’s strength in equipment supply, construction and

fuel supply management to compete in greenfield developments

− Progressing the development of the two greenfield coal projects,Vung Ang 2 and Vinh Tan 3

Leading development efforts for solar project in Thailand

16

Renewables

Climate Vision 2050− RE represents over 11% of CLP Group’s total generating portfolio as at Dec 2009

Utilize our RE project development experience and technical know-how to build a meaningful regional portfolio− China: A portfolio of diversified RE types; Focus on disciplined growth of wind

portfolio− India: Focus on development of new wind projects in states with favourable policies− Southeast Asia: RE opportunities in Thailand including solar and wind− Australia: Cautious on further major investments in renewables due to current low REC

priceYTD Financial performance is yet to be substantial− Results influenced by seasonal factors and part-year commissioning− More than half of the renewable energy portfolio has not yet started operating - full

year earnings not yet materialisedClean Development Mechanism− Phase-I of the Samana Wind Farm (50.4MW) in India was registered with the UNFCCC

as a CDM project− CLP obtained certification from HK Government for implementation of three wholly-

owned RE projects in China under CDM (first for a HK company)

17

Renewables – Going Forward

Copenhagen outcome disappointing, national mitigation actions and incentives remain essentialMaintain investment and disciplined growth in RE Meaningful earnings to come over time as portfolio builds outFocus predominantly on wind in China and India with selective hydro but cautious move towards projects using proven solar technology

18

Group Outlook

Good investment opportunities across the entire range of the Group’s businessHong Kong: Ongoing capital investment under approved Development Plan up to 2013 will underpin the growth of SoC businessAustralia− Improving operating performance − CPRS overhang remains − Positioning TRUenergy in consolidating energy market

China: Repositioning towards lower carbon generation− Growth in wind and hydro− Participation in China nuclear expansion− Selective harvesting of legacy coal-fired assets

India: Good growth across the value chain − Opportunities in conventional and renewable generation and transmission

Southeast Asia & Taiwan − Major focus in Thailand and Vietnam − Support the growth and development of EGCO

19

Appendices

Financial Obligations at a Glance

Borrowings of CLPH and CLPP

HK$7,931m

HK$11,182m

CLP Group (consolidated with TRUenergy, India & PRC

subsidiaries)HK$26,696m

Borrowings of TRUenergy, India & PRC subsidiaries

(non-recourse to CLPH)

Borrowings of CAPCO and PSDC assuming 100%

31 Dec 2009 31 Dec 2008

(a)

Net Debt */Total Capital 21% 20%Interest Cover 18x 23x

Net Debt/Total Capital 31% 29%Interest Cover 8x 9x

Total Debt = (a)+(b)

(b)

HK$15,514m

HK$8,329m

HK$15,002m

HK$39,431m

HK$24,429m

Total Debt/Total Capital 36% 30%

i

Total Debt/Total Capital 20%26%

* As of 31 Dec 09, CLPH had a cash balance of $5 billion

Credit Ratings

Long term Rating

Foreign CurrencyOutlook

Local CurrencyOutlook

Short term Rating

Foreign CurrencyLocal Currency

S&P Moody’s S&P Moody’s S&P

CLP Holdings CLP Power TRUenergy

A–Stable

A–Stable

A2Stable

A2 Stable

AStable

AStable

A1Stable

A1Stable

A-2A-2

P-1-

A-1A-1

--

P-1-

BBB-Stable

BBB-Stable

ii

All ratings maintained. “Negative” outlook on TRUenergy removed upon successful refinancing in Aug 09

Hong Kong Electricity Business

Electricity Sales

ResidentialCommercialInfrastructure & Public ServicesManufacturing

Total Local Sales

Export Sales

Total Sales

8,33112,4887,8131,938

30,570

3,731

34,301

7,89012,3127,6612,202

30,065

3,552

33,617

2008 Change2009GWh

5.6%1.4%2.0%

(12.0%)

1.7%

5.0%

2.0%

iii

Hong Kong – CapexTotal Capital Expenditure in line with Financial Plan

HK$M 2009 2008 Change

CLP Power HK 4,447 4,379 +1.6%

CAPCO 3,351 3,286 +2.0%

Total 7,798 7,665 +1.7%

Capex incurred up to Dec 09 of HK$10.0 billion, vs. Development Plan up to Dec 2013 of HK$39.9 billion

iv

4,849 4,788 4,7454,379 4,447

462 354 551 1,314 1,341

694531

827

1,972 2,010

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY 2005 FY2006 FY2007 FY2008 FY2009

CAPCO - EM’s share

CAPCO - CLP’s share

CLP Power

5,311 5,142 5,296 5,7885,693

55

60

65

70

75

80

85

90

95

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Cen

ts p

er u

nit

Basic TariffTotal Tariff *

Historical Basic Tariff and Total Tariff

v

First time increase of basic tariff in the last 10 years2010 Basic Tariff is lower than it was in 1996

* Total tariff = Basic Tariff + Fuel Clause - Rebates

Renewables Portfolio – 31 Dec 09Operational and under construction

Wind (1,051MW)22 wind farms in China (463 MW)

4 wind farms in Australia (142 MW)

6 wind farms in India (446 MW)

Equity Capacity

Hydro (407 MW)3 hydropower projects in China (371MW)

1 hydropower project in Laos (36MW)

Biomass (14 MW)1 plant in China (11MW)

3 plants in Thailand (3MW)

About 1,472 Equity MW (over 11% of total generating capacity) vi

TaiwanHong Kong

Australia

India

TAIWAN – total 264 MWOperational

Ho-Ping 1,320/264 MW (c)

China

INDIA – total 2,421 MWOperational

GPEC 655/655 MW (g)Wind Projects 101/101 MW (w)

ConstructionJhajjar 1,320/1,320 MW (c)Wind Projects 345/345 MW (w)

AUSTRALIA – total 3,188MWOperational

Yallourn 1,480/1,480 MW (c)Hallett 180/180 MW (g)Ecogen 966/966* MW (g)Tallawarra 420/420 MW (g)Wind Projects 206/86 (w)

ConstructionWind Projects 111/56MW (w)

CHINA – total 6,468 MWOperational

Daya Bay 1,968/1,380* MW (n)Pumped Storage 1,200/600* MW (h)Fangchenggang 1,260/882 MW (c)SZPC 3,060/900 MW (c)CSEC Guohua 5,870/1,141 MW (c)& ShenmuAnshun II 600/420 MW (c)Boxing Biomass 14/11 MW (b)Hydro projects 175/156 MW (h)Wind Projects 626/276 MW (w)

ConstructionSuizhong II 2,000/300 MW (c)Jiangbian 330/215 MW (h)Wind Projects 362/187 MW (w)

HONG KONG – total 6,908 MW*Operational

Castle Peak 4,108/1,643 MW (c)Black Point 2,500/1,000 MW (g)Penny’s Bay 300/120 MW (d)

CLP Group portfolio – 31 Dec 200919,817 MW equity and capacity purchase

Thailand

• Station Name Gross MW / CLP Equity MW* Capacity purchase

Fuel Source: (c) – coal-fired (g) – gas-fired (w) – wind (h) – hydro (n) – nuclear (b) – biomass (d) – diesel

THAILAND – total 568 MWOperationalEGCO 6,179/532 MW

Gas-fired Projects3,566/376 MW (g)BLCP 1,434/96 MW (c)Small Power 512/39 MW (g/b)Others 667/21 MW (c,d)

ConstructionEGCO 1,087/36 MW

Nam Theun 2 1,087/36 MW (h)

vii

Equity MW Attributable to CLP Group – 31 Dec 09- by fuel mix

viii

100---10%0Solar

---14%49214%492Nuclear

---31%12431%124Diesel

---1120%2,6671120%2,667Gas

212%1,6201952%6,8432164%8,463Coal

19%

-

2%

5%

%

77

3

4

33

No. of projects

81%

0%

1%

3%

%

100%

0%

3%

8%

%

192,4815810,75913,240Total

22512156407Hydro

14610*194631,073*Wind

-

MW under construction/

financial commitment

(b)

-31414Biomass

No. of projects

No. of projects

Equity MW in

operation(a)

Total Equity MW

(a) + (b)

Capacity by Energy Type

* Included Hailing wind project (22 equity MW): Expect completion of the sale of this project by 1Q 2010