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Investor Presentaiton

ENN 新奥 Favorable Industry Policies • • Chinese Economy Structural Reform 50.5% of GDP attributable to tertiary industry in 2015, up 2.4 ppt Urbanization Progress . . • Target to increase urbanized population to 60% in 2020 from 55% currently Establish an Ecologically-balanced Society China committed to achieve CO2 emission peak by 2030, CO2 emissions per unit GDP reduce by 60-65% compared with 2005 400,000 steam tonnes of coal-fired boilers should be phased out by 2018, 112 billion m³ of natural gas needed for "coal-to-gas" projects by 2020 NEA expected gas penetration to increase to 10% in 2020 and 15% in 2030 Carbon trading shall cover industries contributing 50% of total carbon emission by 2017 Nation-wide Fuels Upgrade and Pricing Adjustment The State Council required nationwide application of National Standard V gasoline and diesel by Jan 17, one year earlier than the previous plan of Jan 18 No further downward adjustment on gasoline and diesel prices when oil price drops below $40/barrel Natural Gas 6% Renewable 12% Crude 18% 2015 Primary Energy Mix O • Natural gas will remain competitive as a cleaner energy source Coal 64% 21 21
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