Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — FY2010 Earnings Presentation
28 slides from Sembcorp Industries's earnings presentation, Feb 25, 2011
Slide 1: FY2010 Results Announcement
FY2010 Results Announcement February 25, 2011 © Sembcorp Industries 2011 Scope of Presentation • CEO’s Report • Operations Review • Financial Review and Outlook © Sembcorp Industries 2011 2 1
Slide 2: CEO's Report: FY2010 Performance Round-up
CEO’s Report Tang Kin Fei Group President & CEO © Sembcorp Industries 2011 FY2010 Performance Round-up Turnover of S$8.8 billion, down 8% Net Profit before EI of S$760.8 million, up 11% Net Profit after EI of S$792.9 million, up 16% ROE at 22.2% EVA at S$809.4 million Strong balance sheet and cash f
Slide 3: Rewarding Shareholders
Rewarding Shareholders Proposing a final tax exempt one-tier dividend of 17.0 cents per share 50% Rewarding 43% 2010 Total Sembcorp shareholders with a Shareholder Return 43% 40% 13% in dividend per share for Outperformed the FY2010 Straits Times Index by 30% 17 cents 30% Bonus 15 cents 2 cents Ord
Slide 4: Growing Recurring Income Base: Energy
Growing Recurring Income Base Energy 2013 India Andhra Pradesh 6,000 Gross Power Capacity Installed and Under Development of 2011 5,000 5,600 MW Oman Salalah 2006 UAE Power Capacity (Megawatts) Fujairah China 4,000 Shanghai 3,000 2004 Vietnam Ba Ria-Vung Tau 2003 2,000 UK 2001 Teesside Singapore Jur
Slide 5: Growing Recurring Income Base: Water
Growing Recurring Income Base Water 2012 2011 Oman 2010 China Salalah China Indonesia South Africa Chile Panama Qinzhou 7,000,000 Yancheng Batam Nelspruit Santiago Lake Gatun Zhumadian Talang Kelapa Ballito Colina The Caribbean Fuzhou Lampa Antigua Qitaihe Philippines UK Antofagasta Bonaire Yanjiao
Slide 6: Positioned for the Future: Industrial Parks
Positioned for the Future FY2010 Highlights Gross Project Size (hectares) Vietnam China Gross Project Size Gross Project Size INDUSTRIAL PARKS 2,500 4,845 ha 1,842 ha Integrated Developer with More than 20 Years Experience 2,045 2,000 – Total gross project size of 6,687 ha in Vietnam and China of wh
Slide 7: Positioned for the Future; Awards & Accolades 2010
Positioned for the Future In the Right Businesses Essential Solutions for Growing Needs GLOBAL TRENDS OUR BUSINESSES Growing Energy Needs Global Water Scarcity Energy Marine Global Urbanisation Increasing Environmental Awareness Water Industrial Parks © Sembcorp Industries 2011 13 Awards & Accolades
Slide 8: Operations Review
Operations Review Ng Meng Poh Executive Vice President, Singapore and ASEAN (Utilities) Tan Cheng Guan Executive Vice President, Group Business & Strategic Development Head, Middle East & India (Utilities) Low Sin Leng Executive Chairman, Sembcorp Industrial Parks © Sembcorp Industries 2011 Utilitie
Slide 9: Utilities: Singapore
Utilities FY10 Net Profit Singapore (Excluding Others) Capability Showcase and Core Contributor – Good performance from Singapore mainly due to high electricity Singapore prices and better contribution from natural gas importation 59% business 2010 Singapore electricity demand increased by 8.8% on
Slide 10: Utilities: Rest of Asia & Australia, China
Utilities FY10 Net Profit Rest of Asia & Australia (Excluding Others) Stable Earnings Base Rest of Asia & Australia ASEAN 18% – Phu My 3 in Vietnam continued to perform well – Steady contribution from Indonesia and Philippine municipal water operations underpinned by long-term concession agreements
Slide 11: Utilities: China Chemical Industrial Sites
Utilities China Well Positioned in Key Chemical Industrial Sites Shanghai Chemical Industrial Park Zhangjiagang Free Trade Port Zone 2,940 ha – State level chemical park 20,000 ha 45% occupied 53% occupied Sembcorp is the sole outsourced steam Sembcorp concession: 50 years provider in the park for 6
Slide 12: Utilities: India, Middle East & Africa
Utilities India Entry into Fast Growing Indian Power Market Western Region • Energy Deficit of 26,344 GWh1 – 49% stake in Thermal Powertech Corporation India – S$1.9 billion 1,320 MW coal-fired power project in Krishnapatnam, Nellore District, Andhra Pradesh – Equity injected in Feb 2011 – Plant com
Slide 13: Utilities: UK & Americas; Industrial Parks
Utilities FY10 Net Profit UK & The Americas (Excluding Others) Teesside, UK – Weak performance due to customer closures, low power spreads and operational issues – Partial recovery of steam demand with Ensus fully operational and UK restart of PTA & PET facilities by Lotte Chemical 7% – Cost managem
Slide 14: Industrial Parks: Vietnam and China
Industrial Parks Vietnam Strong Performance – Sold 158 ha in 2010 6 ha industrial land in VSIP I 36 ha industrial and 62 ha residential land in VSIP Binh Duong 54 ha industrial land in VSIP Bac Ninh – Continued focus on land preparation for sales Orderbook of 200 ha – Launched 1,600 ha VSIP
Slide 15: Financial Review: Group Profit & Loss
Financial Review Koh Chiap Khiong Group CFO © Sembcorp Industries 2011 Group Profit & Loss (S$M) FY10 FY09 Δ% Turnover 8,764 9,572 (8) EBITDA 1,425 1,316 8 Profit from Operations1 1,343 1,225 10 EBIT 1,183 1,116 6 Share of results: Associates & JVs 160 109 46 Net Finance Cost (28) (7) 297 PBT 1,315
Slide 16: Group Turnover and Profit from Operations
Group Turnover (S$M) FY10 FY09 Δ% Utilities1 3,993 3,680 9 Marine 4,554 5,723 (20) Industrial Parks2 16 15 8 Other Businesses 201 154 31 TOTAL TURNOVER 8,764 9,572 (8) 1 Utilities Turnover breakdown Utilities (excluding Solid Waste Management and Cascal) 3,720 3,495 6 Solid Waste Management (previou
Slide 17: Group Net Profit; Utilities Net Profit
Group Net Profit (S$M) FY10 FY09 Δ% Utilities1 231.3 226.7 2 Marine 492.8 430.2 15 Industrial Parks 36.9 28.3 30 Other Businesses 26.0 25.0 3 Corporate2 (26.2) (27.5) 6 NET PROFIT BEFORE EI 760.8 682.7 11 Exceptional Item (EI) 32.1 - NM NET PROFIT AFTER EI 792.9 682.7 16 1 Utilities Net Profit break
Slide 18: Utilities Net Profit by Product Segment
Utilities Net Profit By Product Segment (S$M) FY10 Energy 165.2 Water 50.0 On-site Logistics & Solid Waste Management1 34.4 Others (18.3) TOTAL NET PROFIT 231.3 1 Solid Waste Management was previously known as the “Environment” business unit © Sembcorp Industries 2011 35 Utilities Net Profit By Geog
Slide 19: Group Capex and Equity Investment; Free Cash Flow
Group Capex and Equity Investment (S$M) FY10 Capital Expenditure – Utilities 561.7 – Marine 98.2 – Industrial Parks 0.1 – Other Businesses 1.8 TOTAL CAPEX 661.8 Equity Investment – Utilities 307.2 – Marine 1.2 – Industrial Parks 11.4 TOTAL EQUITY INVESTMENT 319.8 © Sembcorp Industries 2011 37 Group
Slide 20: Group Borrowings
Group Borrowings (S$M) Dec 31,10 Dec 31,09 PF loans 581 307 Long-term 1,132 430 Short-term 30 231 Gross 1,743 968 Less: Cash and FD (3,488) (2,598) Net Debt / (Cash) (1,745) (1,630) Net Gearing Ratio Net Cash Net Cash Exclude PF1 Net Debt / (Cash) (2,282) (1,752) Net Gearing Ratio Net Cash Net Cash
Slide 21: Financial Indicators; Group Outlook
Financial Indicators FY10 FY09 Before EI EPS (cents) 42.6 38.4 ROE (%) 21.4 23.1 ROTA (%) 11.7 11.9 Interest Cover (times) 23 32 After EI EPS (cents) 44.4 38.4 ROE (%) 22.2 23.1 ROTA (%) 12.2 11.9 Interest Cover (times) 24 32 Per Share NAV (S$) 2.13 1.86 Economic Value Added EVA (S$M) 809.4 770.5 ©
Slide 22: Vital Partners. Essential Solutions. Disclaimer
Vital Partners. Essential Solutions. Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward-looking statements are based on current expectations, projections and assumptions about future events. Although Sem
Slide 23: Appendix: Group Profit & Loss 4Q10
Appendix © Sembcorp Industries 2011 Group Profit & Loss (S$M) 4Q10 4Q09 Δ% Turnover 2,069 2,417 (14) EBITDA 420 520 (19) Profit from Operations 397 483 (18) EBIT 341 464 (27) Share of results: Associates & JVs 56 19 190 Net Finance Cost (14) 15 NM PBT 383 498 (23) Tax (36) (89) (59) Non-Controlling
Slide 24: 4Q10 Turnover and Profit from Operations
Group Turnover (S$M) 4Q10 4Q09 Δ% Utilities1 1,034 1,024 1 Marine 983 1,343 (27) Industrial Parks2 5 5 19 Other Businesses 47 45 5 TOTAL TURNOVER 2,069 2,417 (14) 1 Utilities Turnover breakdown Utilities (excluding Solid Waste Management and Cascal) 935 984 (5) Solid Waste Management (previously Env
Slide 25: 4Q10 Net Profit; Utilities Turnover
Group Net Profit (S$M) 4Q10 4Q09 Δ% Utilities1 54.4 66.4 (18) Marine 145.8 182.3 (20) Industrial Parks 19.4 13.1 47 Other Businesses 5.4 8.9 (40) Corporate2 3.7 (11.7) NM NET PROFIT 228.7 259.0 (12) 1 Utilities Net Profit breakdown Utilities (excluding Solid Waste Management and Cascal) 38.4 60.1 (3
Slide 26: Utilities PFO and Net Profit by Geography
Utilities Profit From Operations (PFO) By Geography (S$M) FY10 FY09 Δ% Singapore 197.2 177.1 11 China 27.0 8.2 229 Rest of Asia1 & Australia 44.8 39.8 13 Middle East & Africa2 21.7 11.1 96 UK 30.8 78.1 (61) The Americas 3 2.3 - NM Others (10.3) (6.9) (49) TOTAL PFO 313.5 307.4 2 4Q10 4Q09 Δ% Singapo
Slide 27: Utilities Turnover and PFO by Product Segment
Utilities Turnover By Product Segment (S$M) FY10 Energy 3,357.6 Water 310.3 On-site Logistics & Solid Waste Management 1 363.9 TOTAL TURNOVER 4,031.8 4Q10 Energy 821.6 Water 127.4 On-site Logistics & Solid Waste Management 1 93.9 TOTAL TURNOVER 1,042.9 1 Solid Waste Management was previously known a
Slide 28: Utilities Net Profit by Product Segment
Utilities Net Profit By Product Segment (S$M) FY10 Energy 165.2 Water 50.0 On-site Logistics & Solid Waste Management 1 34.4 Others (18.3) TOTAL NET PROFIT 231.3 4Q10 Energy 30.6 Water 19.1 On-site Logistics & Solid Waste Management 1 14.1 Others (9.4) TOTAL NET PROFIT 54.4 1 Solid Waste Management