Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — Investor Day (May 2021)
98 slides from Sembcorp Industries's investor day presentation, May 27, 2021
Slide 1: Investor Day 2021 Contents
Contents 1 Sustainability is Our Business Wong Kim Yin 2 Capital Allocation & Financials Sembcorp Industries Eugene Cheng 3 Capabilities Investor Day 2021 Wind Vipul Tuli Solar Koh Chiap Khiong Energy Storage Andy Koss May 27, 2021 Group Centre of Excellence Hong Howe Yong 4 Partnerships Alex Tan 5
Slide 2: 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, estimates, projections and assumptions about future events. Although Sembcorp Industries believes
Slide 3: Sustainability is Our Business
Sembcorp Industries Investor Day 2021 Sustainability is Our Business May 27, 2021 Wong Kim Yin Group President & CEO
Slide 4: Sembcorp Industries at a Glance
Sembcorp Industries at a Glance Operates across Temasek Holdings 49.5% 11 countries, Public 50.5% focused on Asia S$3.8 billion More than 5,000 Market capitalisation employees (as at May 25, 2021) Index Component Listed on • Straits Times Index (STI) • Sustainability indices including Singapore Exch
Slide 5: A New Chapter for Sembcorp
A New Chapter for Sembcorp • Transformed into a focused energy and sustainable solutions provider following the demerger with Sembcorp Marine in September 2020 • Sharpened focus to capture growth opportunities that support energy transition and sustainable development 5 © Sembcorp Industries 2021
Slide 6: Supporting Sustainable Development
Supporting Sustainable Development Renewables Integrated Urban Solutions • Utility-scale wind power generation URBAN WATER • Utility-scale ground-mounted and floating solar power generation • Integrated townships • Industrial wastewater and water • Industrial parks treatment & supply • Commercial &
Slide 7: Change of Guards in the Energy Industry
Change of Guards in the Energy Industry Market cap, US$ billion (Rebased) 500 500 500 Change in market cap 400 400 400 300 300 300 +272% 200 200 +196% 200 100 100 100 0 00 -2% -18% -100 -100 -100 2016 2017 2018 2019 2020 2021 7 © Sembcorp Industries 2021
Slide 8: Global Megatrends
Global Megatrends Decarbonisation Electrification Urbanisation Renewable energy to Growing electricity demand, Economic centre of gravity dominate in a decarbonised driven by decarbonised road shifting to Asia power sector transport 50% of global power Electricity demand will double Asia’s urban pop
Slide 9: Asia: Multi-decade Sustainable Solutions Opportunity
Asia: Multi-decade Sustainable Solutions Opportunity Staggering investments in renewables required to get to Net-Zero by 20501 Strong momentum by Governments on Sustainability Growing share of urban population Percentage of total population (%) in 2018 and 2050 INDIA 2018: 2050: + National Elect
Slide 10: Asia: Multi-decade Sustainable Solutions Opportunity
Asia: Multi-decade Sustainable Solutions Opportunity Sembcorp is well-placed to contribute to the region’s energy transition Growth in renewables capacity (5-year CAGR) Southeast Asia, China and India Forecasted Market Size for Renewables1 2020: 649GW 2025: 1,295GW China 14% 5-year CAGR (2020-2025
Slide 11: Sustainability is Our Business
Sustainability is Our Business • To be a leading provider of sustainable solutions • Transforming our portfolio from brown to green 11 © Sembcorp Industries 2021
Slide 12: Transforming our Portfolio from Brown to Green
Transforming our Portfolio from Brown to Green MORE MORE MORE Sustainable Renewables 10 Sustainable Urban % Share of Net Profit from Sustainable Solutions1 Gross installed capacity, Developments gigawatts Land sales, hectares 500 2.6 172 70% 40% 2020 2025 2020 2025 LOWER Carbon Emissions We are co
Slide 13: Renewables: A growing regional leader
Renewables A growing regional leader Well-positioned in key growth markets with 3,300 MW gross capacity1 Wind Solar Energy Storage System 2,419 MW 775 MW 120 MWh Utility-scale Utility-scale Floating Rooftop INDIA CHINA INDIA SINGAPORE VIETNAM UK Highest wind capacity A leading solar energy
Slide 14: Renewables is our Focus
Renewables is our Focus TARGET 2025: Quadruple gross installed capacity MORE Renewables1 Gross installed capacity, gigawatts 10 Leverage established footprint and capabilities to grow Focus on − Organic growth 2.6 − Selective M&A and partnerships − Capital recycling 2020 2025 1 Renewables comprise w
Slide 15: Urban: Providing platforms for growth
Urban Providing platforms for growth • 14 integrated urban development projects in Vietnam, China and Indonesia • 12,588 hectares in gross project size Vietnam China Indonesia 8,878 ha 2,850 ha 860 ha gross project size gross project size gross project size Vietnam Singapore Sino-Singapore Nanjing E
Slide 16: Growing Integrated Urban Solutions
Growing Integrated Urban Solutions TARGET 2025: Triple land sales in the Urban business MORE Sustainable Urban Developments Land sales, hectares 500 Leverage partnerships, track record and land bank Synergistic platform to grow sustainable urban solutions 172 2020 2025 16 © Sembcorp Industries 2021
Slide 17: Group GHG Emissions
Group GHG Emissions Emissions have increased in tandem with thermal business growth Emissions intensity (tCO2e/MWh) 0.54 0.31 26.5 Absolute GHG emissions (million tCO2e) Myingyan & Chongqing Sirajganj Unit 4 Songzao SEIL Project 2 5.4 SEIL Salalah IWPP & Project 1 Banyan Cogen 2010 2020 Note: GHG em
Slide 18: Climate Action Commitment
Climate Action Commitment TARGET 2025: Reduce GHG emissions intensity by 25% LOWER Carbon Emissions Emissions intensity, tCO2e/MWh Committed to halve GHG emissions by 2030 0.54 (from 2010 baseline of 5.4 million tCO2e1) 0.40 and deliver net-zero emissions by 2050 No investments in new coal-fired ene
Slide 19: Climate Action Commitment
Climate Action Commitment Delivering Net-Zero by 2050 GHG emissions1 (million tCO2e) TARGET TARGET 26.5 Halve Deliver emissions net-zero from 2010 emissions baseline in by 2050 90% 2030 from 2020 to 2030 5.4 2.7 Net-zero 2010 2020 2030 2050 Baseline 1GHG emissions (absolute) include direct emissio
Slide 20: ESG at Sembcorp
ESG at Sembcorp Priority SDGs Strong corporate governance Accountability Amongst the Top Companies in ESG targets Clean Singapore for Corporate Governance incorporated in Energy Company Ranked 8th out of 577 Singapore-listed companies in the Balanced Singapore Governance and Transparency Index (SGTI
Slide 21: Well-positioned to be a leading Pan-Asian provider of sustainable solutions
Well-positioned to be a leading Pan-Asian provider of sustainable solutions UK Across segments Operating one of the largest energy storage Across geographies portfolios in the UK China Early entrant in Asian Established presence in growth markets Bangladesh the renewables and urban sectors Myanmar I
Slide 22: Sustainability is Our Business
Sustainability is Our Business WHY WHAT & WHEN HOW WHERE Global Megatrends Transforming our Delivering Southeast Asia, portfolio Sustainable Solutions China and India Decarbonisation from brown to green Focus on Renewables & Electrification Urbanisation 70% Integrated Urban Solutions 40% + Lev
Slide 23: Capital Allocation and Financials
Sembcorp Industries Investor Day 2021 Capital Allocation and Financials May 27, 2021 Eugene Cheng Group Chief Financial Officer
Slide 24: Repositioning for Transformation
Repositioning for Transformation Business Segments GROW MANAGE FOR VALUE SUSTAINABLE SOLUTIONS ~40% OTHER BUSINESSES RENEWABLES 3% 11% • Non-core portfolio • Wind assets • Solar FY2020 Net • Energy storage Profit before exceptional CONVENTIONAL ENERGY items and 59% corporate costs1 INTEGRATED URBAN
Slide 25: Repositioning for Transformation
Repositioning for Transformation Disciplined capital allocation to drive long-term value creation Strategic Green Optimising Existing Capital Growth Business Recycling Supporting the energy Managing for value, • New sources of capital transition and sustainable exploring optionalities • Portfolio ap
Slide 26: 5-year Investment Programme
Sources | Portfolio | Recycling 5-year Investment Programme Funded by project debt, portfolio optimisation and operating cash flow 5-year cumulative growth investment focuses on Renewables …Funding by project debt, portfolio optimisation, and Integrated Urban Solutions (2021 - 2025)… capital recycli
Slide 27: New sources of ESG capital
Sources | Portfolio | Recycling New sources of ESG capital Global sustainable debt issued by instrument types US$ billion nominal Green financing New sources • Growing ESG-driven interest has increased demand for green Sembcorp Green 759 financial instruments Financing Framework Sustainability-linke
Slide 28: Managing group debt maturity
Sources | Portfolio | Recycling Managing group debt maturity Maturity over FY2021-FY2025 as at Dec 31, 2020 (S$ million) Corporate debt refinancing • Partially pay down with cash on balance sheet 5,000 Medium-term notes and operating cash flow Revolving credit facilities 4,211 • Refinance with term
Slide 29: Continuing divestments will transform and decarbonise the portfolio
Sources | Portfolio | Recycling Continuing divestments will transform and decarbonise the portfolio Divestment track record Since 2018, we have unlocked Strategic rationale cash proceeds of S$735 million 2020 through 17 divestment transactions 2019 • Transform portfolio • Chile municipal water • Sem
Slide 30: Systematic capital recycling
Sources | Portfolio | Recycling Systematic capital recycling Funding the growth pipeline and providing returns uplift Capital recycling Precedent capital recycling examples going forward PUBLIC LISTING INTRODUCING MINORITY AND JV PARTNERS Mature, stabilised Sembcorp Salalah Power Sino-Singapore (Che
Slide 31: Capital recycling by select industry players
Sources | Portfolio | Recycling Capital recycling by select industry players 13% 5% Thermal 27% Thermal 25% Thermal 38% 8 Renewables 9 41 Renewables 55 53% 5 Renewables 19 58% Capacity 87% 15% Others (Nuclear) 100 75% 9% mix (GW) 95% % 2011 2020 2011 2020 2011 2020 • Set up YieldCo (NextEra Energy P
Slide 32: Well-positioned to explore capital recycling platforms in the medium-term
Sources | Portfolio | Recycling Well-positioned to explore capital recycling platforms in the medium-term Key factors for successful capital recycling platforms Strong in-house O&M operating expertise Demonstrated strong capabilities and track record in project execution Well-positioned in renewable
Slide 33: Repositioning for Transformation
Repositioning for Transformation Growing our Sustainable Solutions Portfolio Other Businesses Renewables 5-year CAGR: 3% 30% 11% + FY2020 Sustainable Integrated Urban FY2025 Solutions Sustainable 59% 27% Solutions Solutions ~40% 5-year CAGR: of Group net profit before corporate costs and EI1 10% 70%
Slide 34: FY2020 net profit breakdown by new business segments
FY2020 net profit breakdown by new business segments % before S$ million 2020 corporate costs Renewables 46 11% Integrated Urban Solutions 113 27% Sustainable Solutions 159 38% Conventional Energy 245 59% Other Businesses 11 3% Corporate1 (114) Net Profit before Exceptional Items 301 Exceptional Ite
Slide 35: 2025 Strategic Estimates
2025 Strategic Estimates Targeting double-digit ROE & significantly improve capital management by 2025 Returns Uplift Capital Management ROE, % Debt / EBITDA EBITDA / Interest Pure renewables2: 10% Hybrid1: 7.9x Hybrid2: 7.3x 10% 6.5x Peers range Water & waste2: Peers range Urban1: 6.3x Water & wast
Slide 36: Our Transformation Journey
Our Transformation Journey Brown to Green Transformation 2025 S$5.5 billion investment pivoted towards Sustainable Solutions • Transformed portfolio with 70% net profit before corporate cost contribution from Sustainable Solutions Sources Portfolio Recycling • ROE ~10% Tap on ESG-focused Portfolio t
Slide 37: Our Capabilities
Sembcorp Industries Investor Day 2021 Our Capabilities May 27, 2021
Slide 38: Wind
Capabilities Wind Vipul Tuli © Sembcorp Industries 2021
Slide 39: Our Wind Energy Portfolio
SEMBCORP TRACK RECORD Our Wind Energy Portfolio 9 WINDFARMS, 2 PROVINCES 725MW in operation 34 SITES, 7 STATES First renewables China beachhead in 2012 1,700MW in Joint venture with operation Guohua First player to complete all SECI India wind projects Largest IPP wind fleet under self-
Slide 40: Strong track record of growth and capability-building
BUILDING COMPETITIVE EDGE Strong track record of growth and capability-building INDIA 2015-2017 2018-2020 2021 onwards Wind capacity Central competitive State specific bids Cost plus FIT MW bidding and hybrids 800 State-wise FITs Free transmission Free transmission OEMs develop and SECI au
Slide 41: Industry deploys the latest tech and scale
BUILDING COMPETITIVE EDGE Industry deploys the latest tech and scale INDIA Typical pre-2018 Typical post-2019 3.50-4.50 Tariff 2.50-3.00 INR/kwh 0.8-2.1 Turbine capacity 2.0-3.5 Tariffs not a reliable MW indicator of returns 80-100 Hub height 120-140 Integrated OEMs give way m to IPPs 80-100 Rot
Slide 42: Capabilities deep dive
BUILDING COMPETITIVE EDGE Capabilities deep dive 1. Project Development Deliver projects on time and cost 2. Digital Asset Management Maximise generation at minimum cost 3. Life-Cycle Engineering Bid optimisation, execution quality, asset health 42 © Sembcorp Industries 2021
Slide 43: Project Development
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Project Development First player to complete all SECI wind projects in India Bidder SECI-I SECI-II SECI-III SECI-IV SECI-V SECI-VI SECI-VII SECI-VIII Commissioned Total Sembcorp 250 250 300 800 800 Peer
Slide 44: Digital Asset Management – maximising asset productivity
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Digital Asset Management – maximising asset productivity Proprietary digital platform integrated with frontline O&M practices Peer support O&M site teams groups VBR fleet managers Rewards & Peer
Slide 45: Delivering digital expertise to the frontline
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Delivering digital expertise to the frontline Meticulous, real time visibility, inputs and verification Asset view Turbine view Component view Component analytics - Predictive maintenance - Power curve
Slide 46: Digital Asset Management impact: superior asset productivity
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Digital Asset Management impact: superior asset productivity Continuous improvement in Energy Based Availability Implied higher revenue / year S$12mn 94% 91% 85% 2018 2019 2020 Digital journey 46 © Semb
Slide 47: Life-Cycle Engineering
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Life-Cycle Engineering Over 200-man years of in-house engineering experience, wind & solar Business Development Project Development Asset Management Wind resource assessment Design and execution QC
Slide 48: Case study: Power Curve Performance
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Life-Cycle Engineering Case study: Power Curve Performance Before: underperformance during low wind Fleet performing better than design Power curve performance – GIWEL Bhud 100% = design power curve Pow
Slide 49: Case study: Blade repairs and upgrades
Project Development | Digital Asset Management | Life-Cycle Engineering BUILDING COMPETITIVE EDGE Life-Cycle Engineering Case study: Blade repairs and upgrades Need for innovation Serial defect identified Loose connection between blade and hub due to oil leakage – potential for catastrophic fail
Slide 50: Impact of Strong Capabilities – Higher revenue, Lower costs
BUILDING COMPETITIVE EDGE Impact of Strong Capabilities – Higher revenue, Lower costs Higher generation vs peers1 Lower costs due to in-house O&M Rojmal area example – 30% higher generation INR mn / MW / year (MWh / MW) -33% 2.3 2.0 1.9 1.3 1.6 1.6 0.9 Sembcorp Peer 1 Peer 2 Peer 3 Peer 4 35% of win
Slide 51: Solar
Capabilities Solar Koh Chiap Khiong © Sembcorp Industries 2021
Slide 52: Our Solar Energy Portfolio
SEMBCORP TRACK RECORD Our Solar Energy Portfolio UTILITY SCALE Capabilities across all solar segments • 35MW in operation ROOFTOP • 400MW under development ROOFTOP • 37MWp of contracted capacity FLOATING ROOFTOP FLOATING UTILITY-SCALE India • 371MWp of contracted capacity • More than 2,500 sites
Slide 53: A Fully Integrated Solar Developer
BUILDING COMPETITIVE EDGE A Fully Integrated Solar Developer 1. Business Development Strong pre-sales technical know-how and ability to access customers Winning Contracts 2. Project Development Technical / Engineering skillsets overlaid by value Optimising Costs engineering and a strong emphasis on
Slide 54: Winning Contracts
Winning Contracts | Increasing Yield | Optimising Costs BUILDING COMPETITIVE EDGE Winning Contracts Growth rate outpacing Singapore’s solar national target. Trusted by government agencies, MNCs for providing an end-to-end solar solution Cumulative PV Capacity (MWp) 371.0 SOLAR PROJECTS VIRTUAL PPAs
Slide 55: Increasing Yield
Winning Contracts | Increasing Yield | Optimising Costs BUILDING COMPETITIVE EDGE Increasing Yield Maximising topline through value engineering and technology OPTIMISING SOLAR FLOATERS “BUILD-TO-EDGE” DATA-DRIVEN ENGINEERING Engineering Analytics 3 solar arrays : 1 walkway Maximising remaining Utili
Slide 56: Optimising Costs
Winning Contracts | Increasing Yield | Optimising Costs BUILDING COMPETITIVE EDGE Optimising Costs Proactive project cost management and driving O&M efficiency through automation SHIFTING FROM TURNKEY TO EPCM CLEANING AUTOMATION DRONE TECHNOLOGY Technical Digital & Skillsets Analytics Stripping down
Slide 57: Sembcorp Tengeh Floating Solar Farm
BUILDING COMPETITIVE EDGE Sembcorp Tengeh Floating Solar Farm Case Study: Singapore One of the world’s largest reservoir floating solar farms 122,000 solar panels over 45 hectares covering about 45 football fields Carbon reduction of over 32 ktCO2e / year equivalent to removing over 7,000 cars off S
Slide 58: Sembcorp Tengeh Floating Solar Farm
BUILDING COMPETITIVE EDGE Sembcorp Tengeh Floating Solar Farm Case Study: Singapore Business Development • Winning hallmark tender at a competitive price Increasing Yield • Optimising array: Walkway ratio • Drone thermography: maximising efficiency Cost Reduction • Through O&M automation Currently u
Slide 59: Delivering Performance Above Expected
BUILDING COMPETITIVE EDGE Delivering Performance Returns Focusing on… Above Expected Yield Competitive Cost Competitiveness LCOE High Availability Asset Management Project High Performance Ratio Development + Digital & Analytics Strong engineering and asset management skillsets will underpin returns
Slide 60: Energy Storage
Capabilities Energy Storage Andy Koss © Sembcorp Industries 2021
Slide 61: UK is at the forefront of the energy transition
UK is at the forefront of the energy transition The UK has made significant progress to decarbonise its power sector in the last 10 years • Grew renewable share of electricity generation from 7% to 43% • Leads the world in offshore wind installed capacity at 10GW • Reduced carbon emissions by more t
Slide 62: Our UK Portfolio
SEMBCORP TRACK RECORD Our UK Portfolio Operating one of the UK’s largest battery storage portfolios 800 120 60 60 600 MW Batteries Fast Response Gas Engines 400 Fast Response Diesel Engines Green Assets (W10, W11) 200 Baseload Gas CHP 0 2018 2019 2020 2021-2022 Engines Battery Storage Wilt
Slide 63: Well-positioned Portfolio with Energy Storage
BUILDING COMPETITIVE EDGE Well-positioned Portfolio with Energy Storage Flex Revenue Streams in the UK Market Capacity Government mechanism that pays market Balancing Firm Frequency Response (FFR) Market participants a fixed income on a £/kW basis Services Based on response (in milliseconds), in exc
Slide 64: Well-positioned Portfolio with Energy Storage
BUILDING COMPETITIVE EDGE Well-positioned Portfolio with Energy Storage Ongoing evolution in the power sector UK Renewable Energy Market Products New Products Capacity Wholesale Balancing Services Launch March 2022: Market Markets Firm Frequency Fast Dynamic (firm capacity) Response Reserve Containm
Slide 65: Case Study: Creating Value with Trading and Optimisation
1 14 Jan Day Ahead Prices £/MWh BUILDING COMPETITIVE EDGE 2000 Well-positioned Portfolio with 1500 Sold 60MWh at £1,495/MWh Energy Storage 1000 500 Case Study: Creating Value with Trading and Optimisation 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 Utilising range of in-hous
Slide 66: Building track record for a net-zero economy
LOOKING AHEAD Building track record for a net-zero economy Well-positioned portfolio with energy storage Potential for growth Batteries Fast Response Gas Engines Fast Response Diesel Engines • Options at Wilton and Flex sites for new batteries Green Assets (W10, W11) Baseload Gas CHP Teess
Slide 67: Building track record for our global portfolio
LOOKING AHEAD Building track record for our global portfolio 50% Renewable share of electricity generation (%) UK 43% 40% Our experience in the UK market will position us well for the acceleration in Asia’s renewables growth 30% China 29% Southeast Asia 26% 20% India 20% 10% 0% 2010 2012 2014 2016 2
Slide 68: Group Centre of Excellence
Group Centre of Excellence Hong Howe Yong © Sembcorp Industries 2021
Slide 69: Sembcorp Centres of Excellence
BUILDING COMPETITIVE EDGE Sembcorp Centres of Excellence Leveraging Group-wide innovation and capabilities throughout the business value chain China Engineering Standards & Processes Water Capabilities UK Energy Storage India Markets Systems Wind Vietnam Best Urban People Practice Innovation & Singa
Slide 70: Sembcorp Centres of Excellence
BUILDING COMPETITIVE EDGE Sembcorp Centres of Excellence WIND SOLAR Utility-scale Utility-scale Floating Rooftop Leveraging Group-wide innovation and capabilities • One of the leading wind • A leading solar energy energy players in India player in Singapore throughout the business value chain •
Slide 71: Wind Asset Standards
BUILDING COMPETITIVE EDGE Wind Asset Standards Technical Health of Wind Turbine Safety PERFORMANCE Performance • Human & Machine Interface • EBA (Energy Based Availability) • Unsafe Conditions • Power Curve Analysis • Unsafe Acts / Near Miss Reporting • Curtailment Monitoring • YAW Optimisation RELI
Slide 72: Example: Energy Forecasting
BUILDING COMPETITIVE EDGE Example: Energy Forecasting Developed in-house energy Ability to apply to Optimising Hybrid Solar forecasting capabilities for Wind Solar forecasting / Wind / Battery Storage • Improvement of S$90k in annual • 60MWp floating PV • Reduce battery capacity by 5-10% revenue for
Slide 73: Technology Roadmap
BUILDING COMPETITIVE EDGE Technology Roadmap Long-term HYDROGEN and CCUS Mid-term • Green H2 Today ENERGY STORAGE • Blue H2 RENEWABLES • Integrated renewable • H2 applications generation and energy • Carbon capture, • Resource assessment storage systems solutions utilisation and storage • Resource f
Slide 74: Partnerships
Sembcorp Industries Investor Day 2021 Partnerships May 27, 2021 Alex Tan
Slide 75: Leveraging Partnerships for Growth
Leveraging Partnerships for Growth Win-win partnerships to build scale and serve increasing demand for sustainable solutions JV & Other Partners Increasing demand for green energy and Government & Trusted partner to support sustainable urban achievement of sustainable solutions Government Customers
Slide 76: Case Study: A Valued Partner in the Urban Business
Leveraging Partnerships for Growth Case Study: A Valued Partner in the Urban Business Supporting Governments in sustainable industrialisation and development Vietnam China Indonesia Be among the top ASEAN economies Aspires to be a growth centre for Production-driven economy and in terms of industr
Slide 77: Case Study: A Valued Partner in the Urban Business
Leveraging Partnerships for Growth Case Study: A Valued Partner in the Urban Business Urban Gross Land Bank (ha) Vietnam Singapore Industrial Park, Vietnam 12,000 • Partner with Becamex IDC Corporation since 1996 10,000 • FDI of US$15 billion and 875 customers 8,000 • Extended partnership to sustain
Slide 78: Case Study: A Valued Partner in the Energy Business
Leveraging Partnerships for Growth Case Study: A Valued Partner in the Energy Business Guohua Sembcorp Wind Power JV Companies, Shanghai Caojing Cogeneration Co Ltd, China China Capacity (MW) 4000 900 715 725 700 3000 Revenue 500 432 2000 346 296 300 248 1000 100 0 2012 2015 2016 2017 2018 2019- 200
Slide 79: China Renewable Market Strategy
Leveraging Partnerships for Growth China Renewable Market Strategy The Opportunity Our Strategy • Renewables growth momentum continues. • Pursue renewables growth with existing partners Committed to more than 1,200GW of installed such as Shanghai Electric Power and Guohua wind and solar capacity by
Slide 80: Platforms
Sembcorp Industries Investor Day 2021 Platforms May 27, 2021 Kelvin Teo
Slide 81: Urban Platforms to Deliver Sustainable Solutions
ABOUT URBAN Urban Platforms to Deliver Sustainable Solutions Transform raw land into sustainable urban developments to meet the needs of customers Comprising industrial parks, business, commercial, residential spaces with residential development undertaken selectively Integrated townships & High
Slide 82: Growth Platforms are Focused on Asia
ABOUT URBAN Growth Platforms are Focused on Asia Large-scale developments Jiangsu 1. Wuxi-Singapore Industrial Park China 2. Sino-Singapore Nanjing Eco Hi-tech Island Sichuan 3. Singapore-Sichuan Hi-tech Innovation Park Southern economic corridor 1. VSIP Binh Duong I 2. VSIP Binh Duong II Vietnam 3.
Slide 83: Strong Customer Base
BUILDING COMPETITIVE EDGE Strong Customer Base Our reach Our customers Focused on industry positioning and investment Scale 1,090 promotion to match 12,588 hectares (about a sixth of light industry Singapore) across 14 locations customers locations with tenants Control quality of Geographic cove
Slide 84: Growing Demand for Sustainable Urban Solutions
Growing Demand for Sustainable Urban Solutions Case study from Wuxi-Singapore Industrial Park, China Meet customers’ needs while reducing grid congestion One of the first industrial parks in China to have its own micro-grid, battery storage facilities and solar panels Solar solutions Flexibility
Slide 85: Growing Demand for Sustainable Urban Solutions
Growing Demand for Sustainable Urban Solutions Case study Vietnam Singapore Industrial Park, Vietnam Meet needs of customers that serve brand owners with own ESG goals Apple Inc.’s Supplier Commitments 109 suppliers have committed globally to producing Apple products with 100% clean energy Apple’s S
Slide 86: Growing Demand for Sustainable Urban Solutions
Growing Demand for Sustainable Urban Solutions Case Study: Vietnam Growing Rooftop Photovoltaic Presence Sembcorp’s Competitive Strengths Able to scale up quickly by securing rooftop solar capacity in 10 VSIPs + 5 Becamex industrial parks VSIP rooftops potentially allow 3GW 1 of solar installati
Slide 87: Expanding our Platforms for Sustainable Urban Solutions
LOOKING AHEAD Expanding our Platforms for Sustainable Urban Solutions Able to secure significant land bank Targeting 500 hectares of land sales by 2025 500 Gross Land Bank (ha) Land Sales (ha) 450 400 4,038 350 300 2,874 250 Binh Duong III Binh Dinh 17,500 200 Quang Tri 150 10,588 100 50 2020 Se
Slide 88: Additional Platforms in the Built Environment
LOOKING AHEAD Additional Platforms in the Built Environment Competitive position from our own land bank Provide more opportunities to install sustainable urban solutions Increases recurring income Industrial and Business Spaces for Lease (GFA m2) Cumulative Residential Units* for Sale 276,438
Slide 89: Providing Platforms for Growth
Providing Platforms for Growth Water / Wastewater REC & Carbon Rooftop Green Treatment & Waste Credits Solar Coverage Recycling Plants Recycling A full suite of sustainable urban solutions to meet customer needs Deploy on Urban’s platforms Create and multiply those platforms Sustainable Urban So
Slide 90: Closing Remarks
Sembcorp Industries Investor Day 2021 Closing Remarks May 27, 2021 Wong Kim Yin Group President & CEO
Slide 91: Sustainability is Our Business
Sustainability is Our Business WHY WHAT & WHEN HOW WHERE Global Megatrends Transforming our Delivering Southeast Asia, portfolio Sustainable Solutions China and India Decarbonisation from brown to green Focus on Renewables & Electrification Urbanisation 70% Integrated Urban Solutions 40% + Lev
Slide 92: Transforming our Portfolio from Brown to Green
Transforming our Portfolio from Brown to Green MORE MORE MORE Sustainable Renewables 10 Sustainable Urban % Share of Net Profit from Sustainable Solutions1 Gross installed capacity, Developments gigawatts Land sales, hectares 500 2.6 172 70% 40% 2020 2025 2020 2025 LOWER Carbon Emissions We are co
Slide 93: Sustainability is Our Business
Sustainability is Our Business Right Industry Right Time Right Place Right People Growing renewables Momentum and urgency of Multi-decade The Right Team and urban solutions climate action and sustainable solutions sectors sustainable development opportunity in Asia One Sembcorp Team Institution-firs
Slide 94: Appendix
Appendix © Sembcorp Industries 2021
Slide 95: Speakers’ Profiles
Speakers’ Profiles Wong Kim Yin, Group President & CEO Mr Wong is Group President & CEO. He has over 20 years of leadership experience in the energy sector and investment management. As a former group chief executive officer of Singapore Power (SP Group), Mr Wong led the transformation of the compan
Slide 96: Speakers’ Profiles
Speakers’ Profiles Andy Koss, CEO, UK & Middle East Mr Koss oversees Sembcorp’s operations comprising large-scale industrial assets on the Wilton International site, a portfolio of flexible gas engines and battery energy storage systems across the UK, together with the company’s business interests i
Slide 97: Glossary
Hz hertz IPP independent power producer Glossary JV joint venture kw, kwh kilowatt, kilowatt-hour LCOE levelised cost of electricity AI artificial intelligence m, m 2 metres, square metres bn billion M&A mergers & acquisitions C&I commercial & industrial mn million CAGR compound annual growth rate M
Slide 98: Sembcorp Industries Investor Relations
Sembcorp Industries SGX: U96 | Bloomberg: SCI SP www.sembcorp.com Investor Relations investorrelations@sembcorp.com 98 © Sembcorp Industries 2021