Boustead Singapore Limited · SGX:F9D
Boustead Singapore — Investor Day (December 2013)
64 slides from Boustead Singapore's investor day presentation, Dec 12, 2013
Slide 1: Retail Investor Days 2013
RETAIL INVESTOR DAYS 2013 Boustead Singapore Limited
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact such as forward-looking statements. These statements are based on current expectations, projections and assumptions about future events. Although Boustead believes that these expectations, projections
Slide 3: Presentation Agenda
Presentation Agenda Overview Business Drivers Financial Review Q&A
Slide 4: Overview
Overview Since 1828
Slide 5: Introducing Boustead
Introducing Boustead Engineering the world of the future Established in 1828, Boustead Singapore is a OVERVIEW progressive global infrastructure-related engineering services & geo-spatial technology group Singapore’s longest continuous business entity Listed on SGX since 1975 Energy-Related En
Slide 6: Our Global Network
OVERVIEW Our Global Network UK Canada Italy USA Spain Turkey China South Korea Saudi Arabia UAE India Vietnam Thailand Venezuela Malaysia Singapore Indonesia Brazil Argentina Australia
Slide 7: Our Global Footprint
OVERVIEW Our Global Footprint
Slide 8: Our Global Footprint
Our Global Footprint ASIA & EUROPE AFRICA THE OVERVIEW OCEANIA AMERICAS East South West Eastern East North Asia Asia Europe Africa America China* Bahrain Hungary Tanzania Canada* Japan Cyprus Poland USA* Macau Jordan Russia North South Korea* Kuwait Slovakia Africa Latin America & Taiwan Oman Ukrain
Slide 9: Major Awards/Recognitions
Major Awards/Recognitions Major Awards/Recognitions OVERVIEW 2008 2009 2010 2011 2012 2013 Forbes Asia 200 Best Under A ✓ ✓ Billion Most Transparent Company ✓ ✓ (Runner-Up in Construction Category) CEO of the Year (Mid-Cap ✓ Category) – FF Wong Singapore International 100 ✓ ✓ ✓ ✓ MSCI Global Small
Slide 10: Group Business Model
Group Business Model Undertaking only high value-added activities OVERVIEW across value chain VALUE CHAIN OF ACTIVITIES ENGINEERING FABRICATION DELIVERY In-house expertise for high Outsource low value-added: In-house expertise for high value-added: value-added: Fabrication Design Installation
Slide 11: Group Business Model
Group Business Model Globally competitive OVERVIEW Low capex Business Model Exportable Flexible capacity
Slide 12: Group Strategy & Focus – Asia Pacific
Group Strategy & Focus – Asia Pacific 1) SINGAPORE OVERVIEW Headquarters Main infrastructure engineering base Asia Pacific network bridge 2) AUSTRALIA & SOUTH EAST 3 ASIA Satellite infrastructure engineering base Target markets for 2 infrastructure 1 3) ASIA PACIFIC Target markets for in
Slide 13: Key Business Drivers: Industrial Real Estate Solutions
Key Business Drivers Industrial Real Estate Solutions
Slide 14: Industrial Real Estate Solutions Division Profile
Industrial Real Estate Solutions Division Profile Boustead Projects KEY BUSINESS DRIVERS • Leading industrial real estate solutions provider in Singapore, with core engineering expertise in: - Design-and-build of industrial facilities - Design-build-and-lease of industrial facilities - Industrial
Slide 15: Division Profile: Boustead Projects (cont'd)
Industrial Real Estate Solutions Division Profile Boustead Projects (… cont’d) KEY BUSINESS DRIVERS • Assumed prime role in constructing and developing industrial facilities within: - Airport Logistics Park of Singapore - Boustead Industrial Park - Changi International LogisPark - Paya Lebar iPark
Slide 16: Division Profile: Industry Experience
Industrial Real Estate Solutions Division Profile Boustead Projects (… cont’d) KEY BUSINESS DRIVERS • Industry experience includes:
Slide 17: Leader in Green Mark Award-Winning Facilities
Industrial Real Estate Solutions Division Profile Boustead Projects (cont’d) KEY BUSINESS DRIVERS Leader in Green Mark award-winning industrial facilities Applied Materials Building • 1st Platinum Award Winner in heavy industry category • Winner of Solar Pioneer Award Rolls-Royce Achord • 1st Pl
Slide 18: Leasehold Facilities Portfolio
Industrial Real Estate Solutions Leasehold Facilities Portfolio Client Status GFA (sqm) KEY BUSINESS DRIVERS Energy Alloys Pte Ltd In progress 10,525 Tognum Asia Pte Ltd In progress 24,800 Ausgroup Singapore Pte Ltd Completed 11,470 Boustead Singapore Limited/Tat Hong Investments Pte Ltd In progress
Slide 19: Rolls-Royce Achord Factory
Industrial Real Estate Solutions KEY BUSINESS DRIVERS Division Showcase Rolls-Royce Achord Factory SINGAPORE Singapore’s first Green Mark Platinum in Seletar Aerospace Park
Slide 20: Applied Materials Building
Industrial Real Estate Solutions KEY BUSINESS DRIVERS Division Showcase Applied Materials Building SINGAPORE Singapore’s first Green Mark Platinum in heavy industry category
Slide 21: IBM Singapore Technology Park
Industrial Real Estate Solutions KEY BUSINESS DRIVERS Division Showcase IBM Singapore Technology Park SINGAPORE Green Mark Gold
Slide 22: Global Clients
Industrial Real Estate Solutions KEY BUSINESS DRIVERS Global Clients Multinational Singapore corporations enterprises • Applied Materials • Jabil Circuit • Charles & Keith • BASF • P&G • Greenpac • Bell Helicopter • Rolls-Royce • Huaneng Tuas Power • Bombardier • Satair • Luxasia • Continental Auto
Slide 23: Recent Contracts Secured
Industrial Real Estate Solutions Recent Contracts Secured Month Project Contract Country KEY BUSINESS DRIVERS value Oct 2013 Energy Alloys | Tuas View Industrial Estate - Singapore 10,525 sqm integrated manufacturing and distribution facility Oct 2013 Tognum | Tukang Innovation Park - Singapore 24,8
Slide 24: Seagate Singapore Design Center – The Shugart
Industrial Real Estate Solutions KEY BUSINESS DRIVERS Division Showcase Seagate Singapore Design Center – The Shugart SINGAPORE
Slide 25: Key Business Drivers: Energy-Related Engineering
Key Business Drivers Energy-Related Engineering
Slide 26: Energy-Related Engineering Revenue Split
KEY BUSINESS DRIVERS Energy-Related Engineering DOWNSTREAM UPSTREAM SOLID WASTE OIL & GAS OIL & GAS ENERGY RECOVERY 75 - 80% 15 - 20% 5% of division of division of division revenue revenue revenue
Slide 27: Downstream Oil & Gas
KEY BUSINESS DRIVERS Energy-Related Engineering DOWNSTREAM UPSTREAM SOLID WASTE OIL & GAS OIL & GAS ENERGY RECOVERY 75 - 80% of division revenue
Slide 28: Boustead International Heaters Profile
Energy-Related Engineering Downstream Oil & Gas/Petrochemicals Profile Boustead International Heaters (BIH) KEY BUSINESS DRIVERS • Global specialist in downstream oil & gas/petrochemical industries for: - Direct-fired process heater systems - Waste heat recovery units • Vast knowledge base of over
Slide 29: BIH Profile (cont'd)
Energy-Related Engineering Downstream Oil & Gas/Petrochemicals Profile BIH (… cont’d) KEY BUSINESS DRIVERS • Process heater systems - heart of refining process and key to distillation of: - Natural gas - Liquefied petroleum gas - Kerosene - Gasoline - Diesel - Heating oil - Bitumen • Waste heat re
Slide 30: Downstream Showcase: Stabiliser Reboiler
Energy-Related Engineering KEY BUSINESS DRIVERS Downstream Oil & Gas/Petrochemicals Showcase Stabiliser reboiler ALGERIA
Slide 31: Downstream Showcase: Waste Heat Recovery Units
Energy-Related Engineering KEY BUSINESS DRIVERS Downstream Oil & Gas/Petrochemicals Showcase Waste heat recovery units ALGERIA
Slide 32: Downstream Sustainability: Oil Sands Upgrader
Energy-Related Engineering KEY BUSINESS DRIVERS Downstream Oil & Gas/Petrochemicals Sustainability Oil sands upgrader CANADA
Slide 33: Upstream Oil & Gas
KEY BUSINESS DRIVERS Energy-Related Engineering DOWNSTREAM UPSTREAM SOLID WASTE OIL & GAS OIL & GAS ENERGY RECOVERY 15 - 20% of division revenue
Slide 34: Boustead Controls & Electrics Profile
Energy-Related Engineering Upstream Oil & Gas Profile Boustead Controls & Electrics (BC&E) KEY BUSINESS DRIVERS • Regional specialist in upstream oil & gas industries for: - Wellhead control systems - Hydraulic power units - Emergency shutdown (ESD) systems - Fire & gas detection systems - Integra
Slide 35: Upstream Showcase: Wellhead Control Panels
Energy-Related Engineering KEY BUSINESS DRIVERS Upstream Oil & Gas Showcase Wellhead control panels INDIA
Slide 36: Global Clients
Energy-Related Engineering KEY BUSINESS DRIVERS Global Clients Multinational oil & National oil & gas International EPC gas corporations corporations corporations • BHP Billiton • ADNOC • Bechtel • BG • KPC • Daelim • BP • ONGC • Fluor • Chevron • PDVSA • Foster Wheeler • ConocoPhillips • Pemex • JG
Slide 37: Recent Contracts Secured
Energy-Related Engineering KEY BUSINESS DRIVERS Recent Contracts Secured Month Project Contract value Country Oct 2013 Key large-scale waste heat recovery units S$38m Norway and and process heater system installation Russia services for upstream and downstream oil & gas developments May 2013 Berakas
Slide 38: Key Business Drivers: Water & Wastewater Engineering
Key Business Drivers Water & Wastewater Engineering
Slide 39: Boustead Salcon Division Profile
Water & Wastewater Engineering Division Profile Boustead Salcon KEY BUSINESS DRIVERS • Leading global specialist in water and wastewater engineering • Singapore’s largest ion exchange specialist in energy sector • Outstanding distinction of being one of exclusive group of Asian specialists outside
Slide 40: Division Profile: Industry Experience
Water & Wastewater Engineering Division Profile Boustead Salcon (… cont’d) KEY BUSINESS DRIVERS • Industry experience includes:
Slide 41: Senoko Power Seawater Desalination Plant
Water & Wastewater Engineering KEY BUSINESS DRIVERS Division Showcase Senoko Power Seawater Desalination Plant SINGAPORE Singapore’s first seawater desalination plant
Slide 42: Tanjung Jati B Seawater Desalination Plant
Water & Wastewater Engineering KEY BUSINESS DRIVERS Division Showcase Tanjung Jati B Seawater Desalination Plant INDONESIA
Slide 43: Tembusu Multi-Utilities Complex Plants
Water & Wastewater Engineering KEY BUSINESS DRIVERS Division Showcase Tembusu Multi-Utilities Complex Plants SINGAPORE
Slide 44: Global Clients
Water & Wastewater Engineering KEY BUSINESS DRIVERS Global Clients Power corporations Multinational International EPC corporations corporations • ADWEA • AT&T • Alstom • EGAT • BP • Hitachi • Empresa Electrica • Dow Chemical • Hyundai • GMR • DuPont • JGC • Huaneng Tuas Power • GlaxoSmithKline • Lur
Slide 45: Recent Contracts Secured
Water & Wastewater Engineering KEY BUSINESS DRIVERS Recent Contracts Secured Month Project Contract value Country Feb 2013 Taipower | Talin Thermal Power Plant Multi-million Taiwan 118,560 cu m/day condensate polishing plant May 2012 Sembcorp | Multi-million Singapore Banyan Multi-Utilities Facility
Slide 46: Key Business Drivers: Geo-Spatial Technology
Key Business Drivers Geo-Spatial Technology
Slide 47: Esri Australia and Esri South Asia Profile
Geo-Spatial Technology Division Profile Esri Australia and Esri South Asia KEY BUSINESS DRIVERS • Premier providers of world’s leading geographic information systems (GIS) and location intelligence solutions in exclusive markets: - Australia - Singapore - Malaysia - Indonesia - Bangladesh - Brunei
Slide 48: Esri Profile: Products and Services
Geo-Spatial Technology Division Profile Esri Australia and Esri South Asia (cont’d) KEY BUSINESS DRIVERS • Products and services: - Software sales - Professional services - Training - After-sales maintenance services • Approximately 45% of division’s revenue is recurring in nature • Division recor
Slide 49: Location Intelligence
Geo-Spatial Technology KEY BUSINESS DRIVERS Location Intelligence
Slide 50: Financial Review
= Financial Review Since 1828
Slide 51: FY2013 Group Financial Results
GROUP FINANCIAL REVIEW FY2013 Group Financial Results FY2013 FY2012 Chg (%) Revenue S$513.2m S$408.7m +26 Gross profit S$177.4m S$146.0m +21 Gross profit margin 35% 36% Profit before income tax S$97.4m S$71.9m +35 Profit before income tax margin 19% 18% Profit attributable to owners of S$81.4m S$55.
Slide 52: 1H FY2014 Group Financial Results
GROUP FINANCIAL REVIEW 1H FY2014 Group Financial Results 1H 1H Chg FY2014 FY2013 (%) Revenue S$242.0m S$225.6m +7 Gross profit S$77.6m S$72.6m +7 Gross profit margin 32% 32% Profit before income tax S$35.4m S$33.7m +5 Profit before income tax margin 15% 15% Profit attributable to owners of S$26.7m S
Slide 53: FY2013 Group Revenue Mix by Division
GROUP FINANCIAL REVIEW FY2013 Group Revenue Mix by Division FY’12: 26% FY’12: 31% FY’12: 10% FY’12: 33%
Slide 54: Group Revenue
GROUP FINANCIAL REVIEW Group Revenue 7-year CAGR: +6%
Slide 55: Group Net Profit
Group Net Profit Excluding non-recurring items in 1H FY2013, net GROUP FINANCIAL REVIEW profit in 1H FY2014 would have increased by 25% 7-year CAGR: +13%
Slide 56: Group Net Cash Position
Group Net Cash Position Strong net cash position GROUP FINANCIAL REVIEW 7-year CAGR: +9%
Slide 57: FY2013 Group Cash Flow
FY2013 Group Cash Flow Generated free cash flow of S$53.8m GROUP FINANCIAL REVIEW Paid dividends of S$25.2m
Slide 58: Return on Shareholders' Equity
Return on Shareholders’ Equity Respectable ROE GROUP FINANCIAL REVIEW
Slide 59: Earnings per Share
Earnings per Share EPS in FY2013 boosted by several non- GROUP FINANCIAL REVIEW recurring items 7-year CAGR: +13%
Slide 60: Net Asset Value per Share
Net Asset Value per Share Strengthening financial position GROUP FINANCIAL REVIEW 7-year CAGR: +12%
Slide 61: FY2013 Group Dividend
GROUP FINANCIAL REVIEW FY2013 Group Dividend FY2013 FY2012 Chg (%) Interim dividend 2.0cts 2.0cts Final dividend 3.0cts 3.0cts Total ordinary 5.0cts 5.0cts dividend Special dividend 2.0cts 0.0cts Total dividend 7.0cts 5.0cts +40
Slide 62: Group Dividend
Group Dividend Attractive dividend yield of ~5% on current price and GROUP FINANCIAL REVIEW ~7% on average closing price for FY2013 7-year CAGR: +12%
Slide 63: Boustead Highlights
Boustead Highlights Multi-industry In-depth engineering Proven management prospects expertise globally track record in 4 DIVISIONS 84 UNLOCKING COUNTRIES VALUE Healthy balance sheet Growing base of Average annual cash with net cash position dividend yield over of past decade S$219M RECURRING 5.1% IN
Slide 64: Thank You
= Thank You Since 1828