Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — H1 2009 Earnings Presentation
22 slides from Sembcorp Industries's earnings presentation, Aug 6, 2009
Slide 1: 1H2009 Results Announcement
1H2009 Results Announcement August 6, 2009 Scope of Presentation – CEO’s Report – Financial Review – Operations Review – Group Outlook Sembcorp Industries 2009 2 1
Slide 2: CEO's Report: 1H2009 Performance Round-up
CEO’s Report Tang Kin Fei Group President & CEO 1H2009 Performance Round-up Turnover of S$4.6 billion, down 3% PBT of S$464.7 million, up 7% PATMI of S$275.5 million, up 5% ROE (annualised) at 19.0% EVA at S$246.7 million Strong balance sheet and cash flow – Net cash – Operating cash flow* of S$521.
Slide 3: 1H2009 Performance Round-up; Positioning for the Future
1H2009 Performance Round-up Healthy performance despite difficult operating environment Overseas contributions for Utilities now more broad-based Sembcorp Industries 2009 5 Positioning for the Future Global economic and financial environment appears to have improved, however its outlook remains un
Slide 4: Financial Review: Group Profit & Loss
Financial Review Lim Joke Mui Group CFO Group Profit & Loss (S$M) 1H09 1H08 Δ% Turnover 4,578 4,733 (3) EBITDA 513 446 15 EBIT 418 349 20 PBT 465 435 7 PATMI 276 261 5 EPS (cents) 15.5 14.7 6 Sembcorp Industries 2009 8 4
Slide 5: Group Turnover and Group PATMI
Group Turnover (S$M) 1H09 1H08 Δ% Utilities 1,529 2,226 (31) Marine 2,860 2,300 24 Environment 95 107 (11) Industrial Parks 7 8 (11) Other Businesses 87 92 (6) TOTAL 4,578 4,733 (3) Sembcorp Industries 2009 9 Group PATMI (S$M) 1H09 1H08 Δ% Utilities 99.0 104.1 (5) Marine 159.1 134.4 18 Environment
Slide 6: Group PATMI 2Q09; Utilities Turnover & PATMI
Group PATMI (S$M) 2Q09 2Q08 Δ% Utilities 47.9 43.2 11 Marine 85.1 78.4 9 Environment 3.9 3.2 24 Industrial Parks 7.2 7.9 (9) Other Businesses 2.4 4.3 (44) Corporate (4.6) 1.2 NM PATMI 141.9 138.2 3 Sembcorp Industries 2009 11 Utilities Turnover & PATMI (S$M) 1H09 1H08 Δ% TURNOVER Singapore 1,313.9
Slide 7: Utilities Turnover & PATMI; Broad based Income Stream
Utilities Turnover & PATMI (S$M) 2Q09 2Q08 Δ% TURNOVER Singapore 728.4 985.0 (26) UK 95.2 116.8 (19) Other countries 18.0 12.0 50 Total Turnover 841.6 1,113.8 (24) PATMI Singapore 29.2 42.1 (31) UK 12.7 1.2 958 Other countries 10.3 3.8 171 Corporate & Others (4.3) (3.9) (10) Total PATMI 47.9 43.2 11
Slide 8: Group Capex and Group Cash Flow
Group Capex (S$M) 1H09 Fixed Asset Items 69.8 – Utilities 27.0 – Marine 37.7 – Environment 3.6 – Other Businesses 1.5 Equity Investments 79.4 – Utilities 66.0 – Marine 13.4 TOTAL 149.2 Sembcorp Industries 2009 15 Group Cash Flow (S$M) 1H09 1H08 CASH FLOW FROM OPERATING ACTIVITIES - before changes
Slide 9: Group Borrowings; Strong Financial Stability
Group Borrowings (S$M) June 30,09 Dec 31,08 PF loans 349 362 Long-term 295 236 Short-term 417 219 Gross 1,061 817 Less: Cash and FD (2,467) (2,401) Net Debt / (Cash) (1,406) (1,584) Net Gearing Ratio Net Cash Net Cash Exclude PF* Net Debt / (Cash) (1,523) (1,825) Net Gearing Ratio Net Cash Net Cash
Slide 10: Group Debt Maturity Profile; Financial Indicators
Group Debt Maturity Profile (S$M) <1yr 1yr-3yrs 3yrs-5yrs >5yrs Limited Recourse Project Finance 65 105 111 68 Sembcorp Marine 198 17 0 0 Debt excl. Project Finance Sembcorp Industries excl. Marine 219 71 206 1 Debt excl. Project Finance 500 482 Repayment of non- 65 recourse PF loans 400 funded by p
Slide 11: Operations Review
Operations Review Tang Kin Fei Group President & CEO Utilities 22 Sembcorp’s service corridor on Jurong Island, Singapore 11
Slide 12: Utilities Key Developments: Singapore
Utilities Key Developments Singapore Sembcorp Changi NEWater Plant – Completed Phase 1 (15 MiGD) of the Sembcorp Changi NEWater Plant in July 2009 – To be fully completed (50 MiGD) by mid-2010 – Largest NEWater plant in Singapore and one of the world’s largest reclaimed water plants – Will meet 15%
Slide 13: Utilities Key Developments: UK and China
Utilities Key Developments UK On-site developments and initiatives – 3 customers expected to close facilities by early 2010 – 1 customer in administration. Administrators looking to sell assets as an ongoing concern – Reconfiguring assets to secure other income streams – Enhancing Sembcorp Biomass P
Slide 14: Utilities Key Developments: China and Middle East
Utilities Key Developments China Industrial Wastewater Treatment Plant, Tianjin Lingang Industrial Area – Completed industrial wastewater treatment plant in June 2009 – Capacity of 10,000m3/day – Beachhead established in North China Sembcorp Industries 2009 27 Utilities Key Developments Middle Eas
Slide 15: Marine Key Developments
Marine Sembcorp Industries 2008 29 Sembcorp Marine’s Jurong Shipyard in Singapore Marine Key Developments – Net orderbook of S$7.9 bn as at August 2009 with completions and deliveries till early 2012 – New orders of S$1.12 bn secured to-date since end of 2008 – All deliveries on schedule or ahead
Slide 16: Environment Key Developments
Environment Sembcorp Industries 2008 31 Advanced waste treatment plant in New South Wales, Australia Environment Key Developments – Australia joint venture strengthened position in domestic waste-to resource sector. Completed two state-of-the-art resource recovery facilities in Sydney and Perth pr
Slide 17: Industrial Parks Key Developments: China
Industrial Parks Sembcorp Industries 2008 33 VSIP Hai Phong integrated township and industrial park Industrial Parks Key Developments Nanjing, capital of China Jiangsu Province – Co-developing the Sino-Singapore Nanjing Eco High-Tech Island, China 江北 Jiangbei – Master developer to create a sustain
Slide 18: Industrial Parks Key Developments: Vietnam
Industrial Parks Key Developments Vietnam – Positioned as a major integrated township developer with 4,845 ha when fully developed VSIP I – 500 Ha VSIP Binh Duong – 2,045 Ha – Land development in progress for hand over to customers – Binh Duong developing additional 140 ha of industrial and resident
Slide 19: Group Outlook
Group Outlook The global economic and financial environment appears to have improved, however its outlook remains uncertain. Notwithstanding this, Sembcorp remains committed to deliver satisfactory operating results for the year. Sembcorp Industries 2009 37 Vital Partners. Essential Solutions. S
Slide 20: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward-looking statements are based on current expectations, projections and assumptions about future events. Although Sembcorp Industries believes that these
Slide 21: Group Profit & Loss 2Q09; Group Turnover
Group Profit & Loss (S$M) 2Q09 2Q08 Δ% Turnover 2,431 2,581 (6) EBITDA 272 235 16 EBIT 224 186 21 PBT 249 231 8 PATMI 142 138 3 EPS (cents) 8.0 7.8 3 Sembcorp Industries 2009 41 Group Turnover (S$M) 2Q09 2Q08 Δ% Utilities 833 1,104 (25) Marine 1,497 1,385 8 Environment 48 54 (11) Industrial Parks
Slide 22: Foreign Exchange Movement
Foreign Exchange Movement Exchange Rate1 Currency appreciation / (depreciation) against S$ June 2009 June 2008 Currency S$1.00 YoY GBP 2.2218 2.7348 (18.76%) USD 1.4921 1.3908 7.29% AUD 1.0548 1.2841 (17.85%) RMB 0.2184 0.1971 10.76% 1 Average exchange rates used for translation of underlying net pr