Yangzijiang Shipbuilding (Holdings) Ltd. · SGX:BS6
Yangzijiang Shipbuilding (Holdings) — H1 2021 Earnings Presentation
34 slides from Yangzijiang Shipbuilding (Holdings)'s earnings presentation, Aug 5, 2021
Slide 1: 1H2021 Corporate Presentation
1H2021 Corporate Presentation 5 August 2021
Slide 2: Disclaimer
Disclaimer The presentation is prepared by Yangzijiang Shipbuilding (Holdings) Ltd. (the “Company”) and is intended solely for your personal reference and is strictly confidential. The information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and
Slide 3: Section I: Business Update
SECTION I BUSINESS UPDATE 3
Slide 4: Update on Order Wins for YTD 2021
Update on Order Wins for YTD 2021 • YTD2021 order wins for 112 vessels worth USD6.67 billion, Yangzijiang’s largest order wins in history • Breakthrough in LNG sector, secured its first batch of 40,000 CBM LPG carriers and LNG dual-fuel 7,000TEU containerships. Containerships LPG/Tankers Vessel Type
Slide 5: Half-Yearly Highlights in Pictures
Half-Yearly Highlights in Pictures 5
Slide 6: Section II: Financial Highlights
SECTION II FINANCIAL HIGHLIGHTS 6
Slide 7: Results Highlight – Income Statement
Results Highlight – Income Statement 1H2021 1H2020 Change Financial Highlights Comments RMB'000 RMB'000 % 23 vessels delivered in 1H2021, fewer than the 28 vessels delivered a year ago. Core shipbuilding revenue was 10% lower at RMB4.78 Revenue 6,600,236 8,265,321 (20) billion for 1H2021. Interest i
Slide 8: Revenue Breakdown
Revenue Breakdown 1H2021 1H2020 Shipbuilding Related Segment RMB'000 % RMB'000 % Shipbuilding Turnover 4,778,164 100 5,294,481 100 Cost (4,130,869) -86 (4,434,984) -84 Margin 647,295 14 859,497 16 Trading Turnover 321,881 100 1,560,764 100 Cost (313,478) -97 (1,538,623) -99 Margin 8,403 3 22,141 1 O
Slide 9: Profitability Trend
Profitability Trend Gross Profit and Net Profit Attributable to Shareholders RMB’mln 10,000 35% 9,000 28.4% 30% 8,000 25.5% 7,000 25% 24.8% 6,000 18.3% 20% 17.2% 17.7% 17.0% 5,000 15.3% 13.2% 13.2% 15% 4,000 3,000 10% 2,000 4,112 4,329 4,222 3,312 2,931 3,070 3,105 5% 2,516 1,000 1,686 1,639 0 0% FY
Slide 10: Profitability Trend
Profitability Trend EBIT AND EBITDA RMB’mln 10,000 50% 9,000 45% 8,000 38.7% 40% 34.7% 7,000 35% 6,000 30% 26.2% 20.6% 5,000 21.3% 19.7% 22.7% 25% 4,000 20% 18.5% 3,000 18.7% 17.4% 15% 4,576 4,851 2,000 4,083 4,044 4,374 10% 3,601 3,881 3,365 1,000 2,288 2,551 5% 0 0% FY2017 FY2018 FY2019 FY2020 1H2
Slide 11: Results Highlight – Balance Sheet
Results Highlight – Balance Sheet 30 June 2021 31 Dec 2020 Financial Highlights RMB'000 RMB'000 Property, Plant and Equipment 4,966,130 5,226,004 Restricted Cash 731,583 15,624 Cash & Cash Equivalents 9,715,711 6,633,416 Debt Investments at Amortised Costs 16,626,280 16,957,689 Total Debt 4,682,842
Slide 12: Section III: Segmental Review
SECTION III SEGMENTAL REVIEW Shipbuilding & Related Segments 12
Slide 13: Revenue Trend
Revenue Trend Shipbuilding Revenue Breakdown RMB’mln Oil Tanker LNG 16,000 Others Dry Bulkers & Multi Purpose 14,000 Containership 706 236 886 12,000 122 373 10,000 4,054 529 9,006 8,000 8,763 6,000 5,989 372 147 170 4,000 7,889 2,152 2,000 4,311 3,370 3,079 1,937 - FY2017 FY2018 FY2019 FY2020 1H202
Slide 14: Overview of Order Book
Overview of Order Book 167 vessels US$8.65 billion in contract value 9.27 million CGT Delivery: 2021- 2024 Containerships Bulk Carriers LPG/LNG/Tanker 111 units 43 units 13 units Total CGT – 7.70 million Total CGT – 1.32 million Total CGT – 0.25 million Total value – US$6.91 billion Total value – US
Slide 15: Historical Order Book
Historical Order Book Vessel Qty US$’ billion 180 10.0 6 8.7 160 7 9.0 8.0 140 7.0 120 43 2 6.0 100 1 1 1 5.0 80 1 6 3.5 3.5 2 1 4.0 3.2 4 4 3.1 60 2.9 2.9 2.6 2.4 3.0 38 40 68 57 2.0 58 40 52 50 38 20 1.0 30 27 24 20 17 20 22 38 111 0 0.0 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20
Slide 16: Order Book Customer Profile
Order Book Customer Profile Figures are stated as at 30 June 2021 LNG/LPG 27% 35% 38% 39% 44% 38% 3 orders from 47% 52% 59% Europe and 4 11% 13% orders from Asia 10% 12% 13% 16% 53% Chemical 62% 20% 45% 52% 52% 49% 40% Tanker/Oil 32% 21% 11% Tanker 9% 5 orders from 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020
Slide 17: Order-Winning Momentum
Order-Winning Momentum New contracts secured in terms of vessel quantity and contract value Record orders Vessel Qty in history US$’billion 120 8.00 5 3 7.00 100 6.67 25 6.00 80 5.00 60 4.00 4 60 3.00 40 18 79 2.11 1.82 2.00 24 1.46 20 3 2 32 1.00 9 0.82 19 14 12 0.83 7 0 0.00 FY2016 FY2017 FY2018 F
Slide 18: Shipping and Chartering
Shipping and Chartering Strategy • Leveraging on shipbuilding facilities, build and manage vessels and generate revenue • To balance utilization • A ready fleet to better meet shipowners’ demand • Flexible on fleet size and ready to sell when valuation is desirable • The current order book (slide 14
Slide 19: Section IV: Segmental Review – Financial Investments
SECTION IV SEGMENTAL REVIEW Financial Investments 19
Slide 20: Interest Income – Investment Segment
Interest Income Investment Segment RMB’mln 1,200 1,117.1 1,084.9 1,000 981.9 958.0 903.9 800 600 400 200 0 1H2019 2H2019 1H2020 2H2020 1H2021 Source: Company Data 20
Slide 21: Debt Investments Movements
Debt Investments Movements Debt Investments at amortized costs RMB’000 Gross Balance Impairment Net Balance Balance as at 31 December 2020 18,963,512 (2,005,822) 16,957,690 Additions 12,919,828 - 12,919,828 Redemptions (13,421,214) - (13,421,214) Movement in impairment provisions in 1H2021 - 169,976
Slide 22: Outstanding Balance Debt Investments at Amortised Cost
Outstanding Balance Debt Investments at Amortised Cost RMB’mln 18,000 45% 42% 16,000 38% 40% 4,267 1,685 35% 14,000 3,402 35% 32% 34% 12,000 30% 3,901 5,719 10,000 25% 8,000 20% 14,521 14,328 13,555 6,000 15% 10,528 10,907 4,000 10% 2,000 5% - 0% 30-Jun-19 31-Dec-19 30-Jun-20 31-Dec-20 30-Jun-21 Cur
Slide 23: Debt Investment Investment Process
Debt Investment at Amortised Costs Investment Process Team Due Diligence - A team of 40 people, consisting of professionals with - Thorough due diligence based on the project proposal extensive experience with banking, legal and auditing - Vote by investment committee backgrounds - Legal review and
Slide 24: Debt Investment at Amortised Costs
Debt Investment at Amortised Costs Breakdown of Investment Amount for which collaterals are secured (%) 3% 3% 2% 4% 1% 1% 1% 1% 4% 1% 18% 11% 10% 4% 28% 29% 30% 29% 35% 35% 36% 43% 32% 21% 23% 23% 23% 27% 22% 30-Jun-19 31-Dec-19 30-Jun-20 31-Dec-20 30-Jun-21 Shares Others Land Others - Govt-related
Slide 25: Section V: Strategies
1956 SECTION V STRATEGIES 25
Slide 26: Strategies
Strategies R&D Large Containerships New Yangzi Yard Production Efficiency Large Dry Bulkers Energy Efficiency Mid-sized LNG Carriers Xinfu Yard YAMIC Lower Emission LNG Technology Other Clean Energy Vessels Optimise the use of capacity and expertise at the Group’s three major yards Vision: Productio
Slide 27: Strategies
Strategies Seeking vertical and horizontal integration to build capabilities across the LNG supply chain YAMIC Expanding Partnerships • JV between Mitsui E&S Shipbuilding and YZJ, will allow • Formed a company with venture partners Wuxi China the Group to strengthen its capabilities in building of R
Slide 28: Strategies
Strategies Energy Efficiency Design Index (‘EEDI’) – with EEDI phase 3 in effect for certain increasingly strict carbon intensity standards for new ship types with up to 50% carbon ships intensity reduction for new build large containerships One of the first ever mandatory global GHG reduction IMO I
Slide 29: Section VI: Stock Information
SECTION VI STOCK INFORMATION 29
Slide 30: Share Buyback
Share Buyback Share Buyback Summary in 1H2021 Number of Shares 4,000,000 Average Share Price S$0.975 Share Consideration S$3,900,000 Share buy-back over total number of shares issued 0.10% All Share Buybacks Summary Total number of shares issued 3,974,077,000 Number of Treasury Shares as at 30 June
Slide 31: Dividend Summary
Dividend Summary Dividend and dividend payout ratio SGD ($) 0.080 50% 43% 45% 0.070 32% 40% 0.060 35% 27% 29% 35% 0.050 29% 30% 0.040 25% 20% 0.030 0.050 15% 0.045 0.045 0.045 0.045 0.020 0.040 10% 0.010 5% 0.000 0% FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Dividend (SGD) Dividend Payout Ratio 31
Slide 32: Top Shareholders
Top Shareholders No. Holder Name Position Filing Date % 1 YANGZI INTERNATIONAL 852,845,825 03/12/2019 21.60 LIDO POINT INVESTMENTS 2 394,134,000 03/12/2019 9.98 LTD 3 T ROWE PRICE GROUP INC 233,535,600 06/30/2021 5.91 4 BLACKROCK INC 195,107,017 12/12/2018 4.94 HENGYUAN ASSET INV 5 165,797,370 08/03
Slide 33: Stock Performance
Stock Performance Source: Bloomberg, as of 5 August, 2021 33
Slide 34: Thank You
Thank You For more information, please contact: Financial PR Pte Ltd Investor Relations: Romil Singh / Jass Lim romil@financialpr.com.sg jass@financialpr.com.sg Tel: (65) 6438 2990; Fax: (65) 6438 0064
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