Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — Investor Day (November 2023)
92 slides from Sembcorp Industries's investor day presentation, Nov 6, 2023
Slide 1: Investor Day 2023
Contents Strategic Vision and Targets Wong Kim Yin Capital Management Sembcorp Industries Eugene Cheng Growth Markets Investor Day 2023 China - Alex Tan India - A. Nithyanand Singapore Energy: Earnings Stability and Roadmap November 6, 2023 to Decarbonisation Koh Chiap Khiong Decarbonisation Pathfin
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: Strategic Vision and Targets
Strategic Vision and Targets Wong Kim Yin Group President & CEO 3
Slide 4: Sembcorp Industries at a Glance
OVERVIEW Sembcorp Industries at a Glance Renewables Operating across • Wind 10 countries, • Solar (ground-mounted, floating, rooftop, concentrated solar) focused on Asia • Energy storage systems Gas and Related Services1 More than 5,000 • Importer of piped natural gas & liquefied natural gas employe
Slide 5: Investor Day 2021 Targets
RECAP Investor Day 2021 Targets MORE Sustainable MORE MORE Sustainable Urban % Share of Net Profit from Sustainable Solutions1 Renewables Gross installed capacity*, 10 Developments GW Land sales, ha 500 70% 2.6 172 40% 2020 2025 2020 2025 LOWER Emissions Intensity We are committed to: tCO2e/MWh Re
Slide 6: Transforming our Portfolio
OUR PROGRESS Transforming our Portfolio from 10 8.3 8.7 MORE Sustainable MORE 5.3 % Share of Net Profit1 from Sustainable Solutions Renewables 2.6 Gross installed capacity2, GW // 2020 2021 2022 9M23 2025 500 MORE 27% Sustainable Urban 172 168 172 Developments 120 Land sales, ha // 2020 2021 2022 9M
Slide 7: Value Creation with Execution of Strategy
Value Creation with Execution of Strategy Share price S$ 1,100 Net Profit before Exceptional Items 6.0 900 5.0 4.0 700 3.0 500 952 2.0 883 1.0 300 - 339 395 402 301 100 YEAR 2018 2019 2020 2021 2022 LTM1 1H23 (100) P/E 29.7 15.4 13.8 20.3 14.0 11.1 EV/ EBITDA 10.7 10.2 10.4 8.5 7.8 9.2 Net Debt/ 6.1
Slide 8: Investor Day 2021: Sustainability is Our Business
Investor Day 2021: Sustainability is Our Business WHY WHAT & WHEN HOW WHERE Global Megatrends Transforming our Delivering Southeast Asia, China portfolio from brown Sustainable Solutions and India to green Decarbonisation 70% Focus on Renewables & Electrification Urbanisation 40% Integrated Ur
Slide 9: Why
“Why” Significant Developments WHY Higher interest rates Global Megatrends Decarbonisation Geopolitical tensions Electrification Urbanisation + Market bifurcation Our Purpose Regulation 9 © Sembcorp Industries Investor Day 2023
Slide 10: Why: Industry Challenges and Macro Trends Presents Opportunities
Why: Industry Challenges and Macro Trends Presents Opportunities Significant Developments Implications Opportunities • Capital availability • Favours players with Higher interest rates • Cost vs. returns discipline and access • Mitigated through capital • Sanctions Geopolitical tensions management •
Slide 11: Why: Market Opportunities Remains Strong
Why: Market Opportunities Remains Strong Sembcorp is present in fast-growing renewables markets WHY Strong Growth in Key Focused Markets UK >1,300GW China Of addressable market opportunities 17% 5-year CAGR (2023 to 2028) Vietnam China, India and Southeast Asia India Singapore Indonesia 11 © Sembcor
Slide 12: What and When
“What and When” WHAT & WHEN Portfolio Transformation Continues WHAT & WHEN 25 Transforming our MORE portfolio Renewables 8.7 from brown to green Gross installed renewables capacity, GW 70% 40% 9M2023 2028 2 0.30 2020 2025 LOWER Emissions Intensity1 0.15 tCO2e/MWh 2023F 2028 1 Emissions intensity tar
Slide 13: What: Accelerate Renewables Growth
PORTFOLIO TRANSFORMATION CONTINUES What: Accelerate Renewables Growth 2028 Target: Gross Installed Capacity Gross Renewables Capacity (GW) 25GW Under construction 25 • Triple gross installed renewables capacity from Installed 8.7GW • Strengthen capabilities in wind, solar and ESS 12 12.00 • Deepen p
Slide 14: What: Climate Action Commitment
PORTFOLIO TRANSFORMATION CONTINUES What: Climate Action Commitment Reduce Emissions Intensity 2028 Target: Emissions Intensity1 (tCO2e/MWh) 0.15 tCO2e/MWh 0.54 • Halve emissions intensity from current levels by 2 0.30 2028 • Committed to reduce absolute GHG emissions 0.15 to 2.7 million tCO2e1 by 20
Slide 15: What: Gas Portfolio Provides Earnings Visibility
PORTFOLIO TRANSFORMATION CONTINUES What: Gas Portfolio Provides Earnings Visibility Gas is critical for energy security and has a vital role to play as part of the global energy Strong cash flow transition position from gas • Leading gas player in portfolio to fund Singapore with expertise green gro
Slide 16: What: Addressing Challenges and Opportunities in Urban
PORTFOLIO TRANSFORMATION CONTINUES What: Addressing Challenges and Opportunities in Urban Stable GDP Growth • Performance of segment has not met 5.8% expectations 5% 5% 4.7% • Market potential remains with continued demand in Vietnam and Indonesia • Continue to build up land bank with 10 new MOUs in
Slide 17: Sembcorp's Climate Roadmap and Journey
Sembcorp's Climate Roadmap and Journey 2018 2021 2023 2025 2028 2030 First Set 2025 and 2028 climate Targets (set in 2021) Targets (set in 2023) Absolute Singaporean 2030 climate Emissions action targets CO2e energy company action targets Renewables1 Renewables1 2.7mtCO2e to publish a 10GW 25GW alig
Slide 18: How: Leveraging Strengths
How: Leveraging Strengths HOW Focus on Execution Competition and Differentiated market Regulation strategies Active capital Capital management Best-in-class Talent capabilities 18 © Sembcorp Industries Investor Day 2023
Slide 19: Where: Established Asian Renewables Player Across Key Segments
Where: Established Asian Renewables Player Across Key Segments UK One of the highest wind 420MWh portfolios under in-house asset management in India China 110MW 2,265MW 4,325MW 200MWh Leading solar player in Singapore Oman One of Asia’s largest battery 500MW Vietnam operators India 207MW 1,156MW 2,0
Slide 20: Management Incentives Aligned with Strategic Targets
Management Incentives Aligned with Strategic Targets Accountability Management Long-term Incentives ESG targets incorporated in Balanced Scorecard and communicated in our Sustainability Report Financials • Annual profitability • 2025 targets • 2028 targets Environmental, Social, Governance (ESG) Fin
Slide 21: Driving Energy Transition
Driving Energy Transition WHY WHAT & WHEN HOW WHERE Robust Momentum Portfolio Transformation Focus on Execution Key Markets: for Decarbonisation Continues China, India and and Electrification Southeast Asia MORE 25 Differentiated Renewables >1,300GW 8.7 GW market strategies Of addressable 9M2023 202
Slide 22: Capital Management
Capital Management Eugene Cheng Group CFO
Slide 23: 2021-2023 Financial Accomplishments
2021-2023 Financial Accomplishments Strong Financial Optimised Capital Share Performance Structure Outperformance (2020-2022) • Net profit1 growth of • Successfully raised • Share price3 +146% ~146% >S$4bn of sustainable since May 2021, Renewables: 204% financing at attractive outperforming Strait
Slide 24: 2024-2028: An Ambitious & Focused Capital Allocation Plan
2024-2028: An Ambitious & Focused Capital Allocation Plan Continuing our brown to green transition Renewables Business-As-Usual Continue to grow in 75% Investments into hydrogen-ready key markets assets (8%) and replacement capex (2%) to maintain strong cash flow generation and fund green investment
Slide 25: Well-Positioned to Drive Further Growth
Well-Positioned to Drive Further Growth Strong Growth Opportunities Outpacing industry growth in fastest expanding renewables markets Strong cash flow generation Established Presence Diversified sources of funding Leading renewables player diversified across markets and technologies Capital recyclin
Slide 26: Expanding Renewables Presence in Fastest Growing Markets
Expanding Renewables Presence in Fastest Growing Markets • >1,300GW of new build capacity1 expected between 2023-2028 in key markets • Sembcorp expects to achieve 22% CAGR growth in gross installed renewables capacity, above market average CAGR of 17% between 2023-2028 • A unique leading renewables
Slide 27: Achieve Broader Diversification Across Key Markets and Technologies
Achieve Broader Diversification Across Key Markets and Technologies As at Sep 30, 2023 2028 India 27% India China Gross Installed China 8.7GW 25GW Capacity 62% (by Country) Southeast Asia 10% UK & Middle East 1% Southeast Asia UK & Middle East Solar Wind Gross Installed 31% Wind 8.7GW 25GW Solar Cap
Slide 28: Strong Access to Diversified Funding Sources
Strong Access to Diversified Funding Sources Sources of Funds Integrated Urban S$14bn Solutions 5% Replacement capex 2% Hydrogen-ready assets 8% Decarbonisation Solutions 10% 50% Renewables 75% 30% 20% Total Investment Operating Project Debt Corporate Debt, Cash Flow Capital Recycling & Partnerships
Slide 29: Long-term Contracted Position Underpins Strong Operating Cash Flow
Long-term Contracted Position Underpins Strong Operating Cash Flow High Contracted Position of Gas Portfolio1 Strong Operational Free Cash Flow (S$ million) 3% 5% 23% 2,0152 45% 1,817 187 165 1,335 116 72% 719 1,828 1,652 52% 1,219 228 491 Group Portfolio Singapore Portfolio 2020 2021 2022 Jul 1, 20
Slide 30: Ability to Access Green Sources of Funding
Ability to Access Green Sources of Funding • Successfully launched Sustainability-linked Financing Framework in 2021 • Secured over S$4 billion of green and sustainability-linked financing since 2021 10,000 Total Debt Proactive Interest Rate 9,000 Management S$7.7bn Strong balance sheet 8,000 S$7.
Slide 31: Systematic Capital Recycling
Systematic Capital Recycling Develop self-sustaining model and create value uplift in the renewables segment Strong in-house O&M operating expertise Demonstrated strong capabilities and track record in project execution Achieved scale in renewables portfolio with 8.7GW operational and Well-positione
Slide 32: Establish In-country Capital Recycling Platforms
Establish In-country Capital Recycling Platforms Target self-funding and demonstrate quality of renewables platforms with introduction of capital partners Sembcorp Equity Operating Cash Flow (China Water) Funding1 + Offshore CNH Debt Facility . Operating Cash Flow (China External Water) Operating Ca
Slide 33: Ability to Drive Renewables Returns through Capabilities & Partnerships
Ability to Drive Renewables Returns through Capabilities & Partnerships Increasing Renewables Net Profit and Returns Enhancing Returns of Portfolio China – SDIC Platform (35%-owned) 220 12.0% 10.2% 10.2%1 1.7GW organic growth 170 10.0% Optimise financing +100 bps terms through SOE 8.0% partnersh
Slide 34: Well-Positioned in Initiatives to Further Decarbonisation and Transition Beyond 2028
Well-Positioned in Initiatives to Further Decarbonisation and Transition Beyond 2028 Low–carbon Electricity • Development of new 600MW hydrogen-ready power plant in Singapore • Pursue regional power imports • Explore opportunities in direct-fired ammonia power and CCS Low-carbon Feedstock • Strategi
Slide 35: Sembcorp's 2028 Strategic Metrics
Sembcorp’s 2028 Strategic Metrics ROE (%) Net Debt / Adj. EBITDA Adj. EBITDA / Interest 19.0% Renewables2: Exclude EI 5.4x 4.7x 4.5x EU Hybrid2: Asian Hybrid2: 5.7x 3.7x 4.0x 5.0x 12.0% EU Hybrid2: 3.7x Asian Hybrid2: 4.7x Asian Hybrid1: 18.2% 11.0% 3.7x EU Hybrid1: Renewables2: 3.5x 8.9% Renewables
Slide 36: Ensuring Sustainable Returns to Drive Energy Transition
Ensuring Sustainable Returns to Drive Energy Transition Net Profit2 6-year CAGR Expected Investment 2028 Estimated ROE (2022-2028) (2024-2028) Gas and Related -2% S$1 billion 15% Services1 Renewables +25% S$11 billion 10% Integrated Urban • Stable performance expected Solutions • Continue to build u
Slide 37: Leading Asian Renewables Player with Unique Value Proposition
Leading Asian Renewables Player with Unique Value Proposition Ambitious target to grow renewables Strong financial metrics, disciplined capacity to 25GW by 2028 investment framework Scale Established presence in key renewables Financial Deploy S$14 billion into accretive markets investments to creat
Slide 38: Growth Markets
Growth Markets Renewables Capabilities & Strategic Positioning
Slide 39: Overview & China
Overview & China Alex Tan CEO, China © Sembcorp Industries Wind assets in Yunnan province, China, jointly owned by Sembcorp and SDIC New Energy 39 © Sembcorp Industries Investor Day 2023
Slide 40: Leveraging Competitive Advantages to Grow Our Pipeline
Leveraging Competitive Advantages to Grow Our Pipeline Sembcorp Gross Renewables Capacity (GW) 4.0 Organic Growth 2 Strong greenfield development 12.0 2.0 0.9 expertise 1 9.8 0.0 0.7 Partnerships 4.7 8.0 Win-win partnerships to build scale 1 3.4 6.1 6.0 0.1 1.3 Platforms 4.0 3.2 Grow capacity
Slide 41: China: Largest & Fastest Growing Renewables Market
Growth Markets INDUSTRY OVERVIEW China China: Largest & Fastest Growing Renewables Market 17% CAGR (2023-2028) Capitalising on industry growth • Renewables capacity expected to increase by >1,000GW between 2023-2028 2,074 • China to exceed 2030 target of 1,200GW of wind and solar capacity Strong sup
Slide 42: Expanding Our Geographical Presence Across China
Growth Markets SEMBCORP CHINA RENEWABLES OVERVIEW China Expanding Our Geographical Presence Across China Critical Success Factors Deep understanding of local market Strong track record in establishing and Total Renewables Capacity1 nurturing relationships 6.9GW Ability to leverage partners’ ne
Slide 43: Established Strategic Partnerships
Growth Markets TRACK RECORD China Established Strategic Partnerships State Development Hunan Xingling New Entity Guohua Investment Corporation Beijing Energy Sembcorp Energy (SDIC) New Energy Year 2012 2021 2022 2022 Sembcorp’s Stake 49% 35.1% 45.3% 49% Guohua Energy Beijing Energy Partner SDIC Powe
Slide 44: Driving Growth and Enhancing Returns
Growth Markets TRACK RECORD China Driving Growth and Enhancing Returns Partnership with SDIC Power exemplifies our ability to nurture high-quality partnerships • Total portfolio increased to 3.6GW, from 1.9GW when acquired in 2021 • Access to quality projects with high standards of development and o
Slide 45: Asset Management Driving Cost Optimisation
Growth Markets CAPABILITIES China Asset Management Driving Cost Optimisation Case Study 1: Reduction in Unscheduled Outages Case Study 2: Reduction in O&M Costs and Recovery Time Installed Capacity in Hebei Wind Assets (150MW) Installed Capacity in Hebei Wind Assets (150MW) 8 7 6 3rd party cost In-h
Slide 46: Executing a "China for China" Strategy
Growth Markets GROWTH STRATEGY China Executing a “China for China” Strategy Strategic Priorities • Focus on premium-quality assets with stringent and rigorous asset selection Strategically expand process majority-owned platform • Continue to build capabilities in asset management and operations to f
Slide 47: India
India A. Nithyanand CEO, Sembcorp Green Infra (India) © Sembcorp Industries Solar assets in Gujarat, India 47 © Sembcorp Industries Investor Day 2023
Slide 48: India Renewables: Multi-decade Growth Opportunities
Growth Markets INDUSTRY OVERVIEW India India Renewables: Multi-decade Growth Opportunities 17% CAGR (2023-2028) Capitalising on industry growth • Second largest renewables growth market in Asia, target installed capacity of 360GW by 2030 295 • Renewables energy capacity1 expected to increase by 160G
Slide 49: Improving Financial Health of Distribution Companies
Growth Markets INDUSTRY OVERVIEW India Improving Financial Health of Distribution Companies Financial health of most state Distribution Companies (DISCOMs) has been improving, coupled with lower Aggregate Technical and Commercial (AT&C) losses Significant drop in legacy dues and AT&C Material rerati
Slide 50: Established Developer with Strong O&M Capabilities
Growth Markets SEMBCORP INDIA RENEWABLES OVERVIEW India Established Developer with Strong O&M Capabilities Critical Success Factors Deep local market understanding Strong development capabilities with ability to participate across all renewables Total Renewables Capacity1 segments 3.2GW Proven
Slide 51: Proficiency in the Renewables Value Chain
Growth Markets TRACK RECORD India Proficiency in the Renewables Value Chain Gross Renewables Capacity1 (MW) Growing Scale 3,177 ~50% increase in capacity since 2020 Acquired renewables portfolio of Vector Green Leverage utility-scale capabilities to grow commercial & industrial segment 2,129 2
Slide 52: Superior Asset Productivity in Comparison to Peers
Growth Markets CAPABILITIES India Superior Asset Productivity in Comparison to Peers Rojmal area, Gujarat: 27% higher than peer average Continuous improvement in Energy Based MWh / MW Availability (%) 27% 2,045 92.7 94.1 90.7 91.0 1,855 Peer avg. 1,755 1,645 1,606 82.4 1,410 1,365 2018 2019 2020 202
Slide 53: Strong In-house Operational Expertise
Growth Markets CAPABILITIES India Strong In-house Operational Expertise Crane-less Technology First IPP in India to use crane-less technology to de- 75% 80% First faster erect 60+ m long WTG blades (SECI III) lower cost IPP in India Eliminates any challenges in transportation Reduction in cost R
Slide 54: Digital Asset Management to Drive Superior Performance
Growth Markets CAPABILITIES India Digital Asset Management to Drive Superior Performance Analytics Inverter Condition Pinpointing Solar Power Efficiency Monitoring - Subsystem Curve Monitoring Inverter Performance Analytics highlights the Facilitates analysis of Helps in comparing Enables pr
Slide 55: Leverage Capabilities and Organisational Excellence
Growth Markets GROWTH STRATEGY India Leverage Capabilities and Organisational Excellence Strategic Priorities • Greenfield bids Grow renewables • Portfolio acquisitions portfolio • Commercial and industrial customers Maximise asset • Deliver projects within timeframe and budget productivity • Maximi
Slide 56: Singapore Energy
Singapore Energy Earnings Stability and Roadmap to Decarbonisation Koh Chiap Khiong CEO, Singapore & Southeast Asia
Slide 57: Singapore: Core Market with a Diversified Portfolio
Singapore Energy & Roadmap to Decabonisation Singapore: Core Market with a Diversified Portfolio Sembcorp’s Differentiators Gas Portfolio Renewables Portfolio More than 25 years of 1,219MW1 473MW experience and expertise in Reliable fleet of CCGTs Roof-top, floating and energy value chain ground-m
Slide 58: Well Placed to Meet Demand with Gas and Solar Portfolio
Singapore Energy & Roadmap to Decabonisation Well Placed to Meet Demand with Gas and Solar Portfolio Natural • Contracted gas position Solar • Proficient in full suite of solar solutions Gas • Efficient and reliable fleet of CCGTs • Fully integrated from project development to O&M COMPETITIVELY PRIC
Slide 59: Ability to Secure Long-term Contracts; Insulating Portfolio from Market Volatility
Singapore Energy & Roadmap to Decabonisation Ability to Secure Long-term Contracts; Insulating Sembcorp’s Portfolio from Market Volatility Key Outcomes Long-term PPA transforms merchant-centric portfolio into stable, recurring income portfolio • First in the market to secure multiple long-term power
Slide 60: Only Player with Full Suite of Competitive and Green Energy Solutions
Singapore Energy & Roadmap to Decabonisation Only Player with Full Suite of Competitive and Green Energy Solutions Battery Energy Regional Power Imports Storage Systems ASEAN Power Grid Solar Energy Jurong Island ESS • Access to large scale Ground Mount, • Provides grid renewable energy Floating, Ro
Slide 61: Developing Options for Renewables Import
Singapore Energy & LONG-TERM GROWTH OPPORTUNITIES Roadmap to Decabonisation Developing Options for Renewables Import Collaborating with ASEAN partners Regional Power Grids • Conditional approval to import 1.2GW of low-carbon electricity from Vietnam to Singapore – largest import licence approved Est
Slide 62: Greening Gas-Fired Assets with Low-carbon Technologies
Singapore Energy & LONG-TERM GROWTH OPPORTUNITIES Roadmap to Decabonisation Greening Gas-Fired Assets with Low-carbon Technologies Low-carbon Alternatives Ammonia-fuelled Hydrogen Hydrogen ready Carbon capture power generation production and power plants and storage import • JDSA with GE Vernova and
Slide 63: Singapore Serves as a Perfect Demand Aggregator for Energy Carriers
Singapore Energy & LONG-TERM GROWTH OPPORTUNITIES Roadmap to Decabonisation Singapore Serves as a Perfect Demand Aggregator for Energy Carriers Sembcorp’s Differentiators • Strong customer base with existing Natural Gas, Power and Solar External Factors driving green demand solutions Vietnam • Contr
Slide 64: Sembcorp's Strategy Aligned with Singapore's 4 Switches
Singapore Energy & Roadmap to Decabonisation Sembcorp’s Strategy Aligned with Singapore’s 4 Switches Leveraging our expertise to develop low-carbon alternatives Natural Gas Solar Regional Power Grids Low-carbon Alternatives Singapore’s four energy switches Leading Growing Expanding Sembcorp’s Natura
Slide 65: Growing Existing Portfolio will Fund Transition to Green
Singapore Energy & Roadmap to Decabonisation Growing Existing Portfolio will Fund Transition to Green Unique Proposition in Singapore Market • Gas remains as dominant source Solar of power generation for Singapore Power Import • SCI is the only player who has a Solar Hydrogen unique proposition due
Slide 66: Leading the Market in Transition to Sustainable Energy
Singapore Energy & GROWTH STRATEGY Roadmap to Decabonisation Leading the Market in Transition to Sustainable Energy Strategic Priorities Maintain competitiveness of gas portfolio • Deliver efficient and reliable energy through the transition • Diversify gas portfolio and maintain market leading posi
Slide 67: Decarbonisation Pathfinders
Decarbonisation Pathfinders Low-carbon Feedstock | GoNetZeroTM
Slide 68: Low-carbon Feedstock
Low-carbon Feedstock Vipul Tuli Chairman, South Asia CEO, Hydrogen Business & Middle East 68 © Sembcorp Industries Investor Day 2023
Slide 69: Hydrogen a Key Enabler for Energy Transition
Decarbonisation Pathfinders Low-carbon Feedstock Hydrogen a Key Enabler for Energy Transition Hydrogen Demand by Segment million tonnes H2 p.a.1 660 Rapid demand projected for Power hydrogen generation • 660 million tonnes (MT) of Mobility incl. hydrogen (H2) required per 7-8x 385 shipping annum in
Slide 70: Hydrogen Projected to Become Viable with US$50/tCO2 Carbon Price
Decarbonisation Pathfinders Low-carbon Feedstock Hydrogen Projected to Become Viable with US$50/tCO2 Carbon Price Marginal abatement cost curve from using $1/kg hydrogen for emission reduction, by sector in 2050 Carbon price ($/tCO2) 200 Space and Water heating 150 Shipping Methanol Glass 100 Alumin
Slide 71: Sembcorp Has a Credible 'Right to Play'
Decarbonisation Pathfinders Low-carbon Feedstock Sembcorp Has a Credible ‘Right to Play’ Renewables Electrolyser Carrier Infrastructure End-use + - Wind Solar BESS Alkaline / PEM NH3 / LOHC / CH4 / LH2 Shipping Power Industries Mobility 12GW1 of wind, solar and BESS capacity 1 Ability to deliver hig
Slide 72: Sembcorp Present in Countries with Low LCOH
Decarbonisation Pathfinders Low-carbon Feedstock Sembcorp Present in Countries with Low LCOH LCOH ($/kg) by 2030 $/MMBtu 4.5 33.5 PEM electrolyser Powered by solar PV 4.0 (top of range) 29.8 3.5 26.0 3.0 Western alkaline 22.3 electrolyser (line) 2.5 18.6 2.0 14.9 1.5 11.2 Powered by onshore wind 1.0
Slide 73: Ability to Deliver Globally Competitive LCOE – India Example
Decarbonisation Pathfinders Low-carbon Feedstock Ability to Deliver Globally Competitive LCOE – India Example Average Solar Tariff (Utility-scale; 2021) US c/ kWh 4.8 5.5 • Free access to 4.6 4.2 national grid enables 3.4 2.2 2.3 combining low cost solar and wind from different regions Saudi India C
Slide 74: Positioning Sembcorp for Green Ammonia Production
Decarbonisation Pathfinders Low-carbon Feedstock Positioning Sembcorp for Green Ammonia Production Port production sites Potential RE sites (solar and wind) • Pre-FEED completed • One port site secured, with three under discussion • Renewable power to be produced in Rajasthan / Gujarat (solar) and K
Slide 75: Positioning Sembcorp for Growth in Green Hydrogen
Decarbonisation Pathfinders Low-carbon Feedstock Positioning Sembcorp for Growth in Green Hydrogen Create optionality for cost-competitive, Prepare to secure long-term offtake scalable supply Singapore Own supply: India NH3 usage: Green ammonia JV Opportunities: • CCGT retrofitted to ammonia firing
Slide 76: Low-carbon Feedstock - Roadmap for Growth
Decarbonisation Pathfinders Low-carbon Feedstock Low-carbon Feedstock - Roadmap for Growth Market Opportunities Sembcorp’s Competitive Advantage • Strong policy support • Strong renewables capabilities to offer scalable and cost-competitive supply • Push to decarbonise hard-to-abate industries • Cap
Slide 77: GoNetZero
GoNetZeroTM Soon Sze Meng CEO, GoNetZeroTM 77 © Sembcorp Industries Investor Day 2023
Slide 78: Global Net Zero Commitments Have Accelerated in Last 2-3 Years
Decarbonisation Pathfinders GoNetZeroTM Global Net Zero Commitments Have Accelerated in Last 2-3 Years > 140 countries globally have made 88% of global emissions are covered by net-zero commitments net-zero commitments Countries with no net- 140 zero target 12% Other countries with similar net- zero
Slide 79: Companies are Dedicating Meaningful Resources towards Net Zero
Decarbonisation Pathfinders GoNetZeroTM Companies are Dedicating Meaningful Resources towards Net Zero >7,200 companies globally have made net- ... with >US$130T finance committed to net- zero commitments… zero through GFANZ 7,200 130T 7x 26x 992 5T Jan 2020 Jun 2022 Jan 2020 Jun 2022 Source: UN Cli
Slide 80: Renewable Assets Generate Environmental Attributes for Net Zero Targets
Decarbonisation Pathfinders GoNetZeroTM Sembcorp’s Renewable Assets Generate Environmental Attributes that Companies can Use to Meet Committed Net Zero Targets Renewable Energy Certificates (RECs) Standards / Scheme Certification 1 1MWh of energy produced REC by renewable sources • Conveys the use o
Slide 81: GoNetZero Provides a Single Point of Access to RECs and Carbon Credits
Decarbonisation Pathfinders GoNetZeroTM GoNetZeroTM Provides a Single Point of Access to Renewable Energy Certificates (RECs) and Carbon Credits NetZero Platform Environmental Attributes (EAs) Trusted, third-party verified and traceable RE100- recognised RECs and carbon offsets. Convenient digital p
Slide 82: Proprietary Smart Energy Asset Management Software
Decarbonisation Pathfinders GoNetZeroTM Sembcorp Group Digital Has also Developed Proprietary Smart Energy Asset Management Software for our Renewable Assets NetZero OS Wind Analytics & YAW Evaluation Solar Analytics & On-premise Edge Monitoring Monitoring Computing Weather Forecasting Energy & Irra
Slide 83: GoNetZero Aims to Provide End-to-end Solutions
Decarbonisation Pathfinders GoNetZeroTM GoNetZeroTM Aims to Provide a Range of End-to-end Solutions to Address our Customers Net Zero Requirements Measure and report Renewable Energy Carbon credits Marketplace Leverage tools to track and Certificates (RECs) Compensate for unavoidable Trade carbon cr
Slide 84: Addressable Markets are Expected to Grow Meaningfully by 2030
Decarbonisation Pathfinders GoNetZeroTM Addressable Markets are Expected to Grow Meaningfully by 2030 2022 2030 Notes National / Regional REC program ~2x growth • US REC market accounts for ~60% of the US$23bn US$43bn (Compliance) market share in 2030 I-REC and TIGR ~8x growth • Growing demand drive
Slide 85: GoNetZero on Track for >6x Revenue Growth in 2023
Decarbonisation Pathfinders GoNetZeroTM GoNetZeroTM is on Track to Achieve >6x Revenue Growth in 2023; Revenue Aspiration of $400m by 2028 (~20x Growth Potential) 2021 – 2023F Revenue 5-Year 2028F Revenue Aspiration (S$ million) $18m $400m Q4F $6m 6x 20x 9M23 $12m 3x $3m $1m $18m 2021 2022 2023F 202
Slide 86: Closing Remarks
Closing Remarks Wong Kim Yin Group President & CEO 86 © Sembcorp Industries Investor Day 2023
Slide 87: Driving Energy Transition
Driving Energy Transition WHY WHAT & WHEN HOW WHERE Robust Momentum Portfolio Transformation Focus on Execution Key Markets: for Decarbonisation Continues China, India and and Electrification Southeast Asia MORE 25 Differentiated Renewables >1,300GW 8.7 GW market strategies Of addressable 9M2023 202
Slide 88: Appendix
Appendix 88 © Sembcorp Industries Investor Day 2023
Slide 89: Speakers' Profiles
Speakers’ Profiles Wong Kim Yin, Group President & CEO Mr Wong has close to 30 years of leadership experience in the energy sector and in investment management. He has been instrumental in leading Sembcorp’s transformation of its portfolio from brown to green. Mr Wong was the group chief executive o
Slide 90: Speakers' Profiles
Speakers’ Profiles Koh Chiap Khiong, CEO, Singapore & Southeast Asia Mr Koh oversees Sembcorp’s operations comprising large-scale energy, water and battery storage assets on Jurong Island (Singapore) and a portfolio of energy assets across Southeast Asia. He is also responsible for driving the strat
Slide 91: Glossary
Glossary LCOH LH2 levelised cost of hydrogen liquid hydrogen LNG liquefied natural gas 2023F 2023 forecast LOHC liquid organic hydrogen carriers API Application Programming Interface LTM last twelve months AT&C losses Aggregate Technical and Commercial losses m million BESS battery energy storage sy
Slide 92: For more information, please contact
For more information, please contact Appendix investorrelations@sembcorp.com (65) 6723 3327 LING Xin Jin Sabrina TAY Sam TRINH Head, Group Corporate Senior Manager, Group Corporate Manager, Group Corporate Communications Communications & Investor Relations Communications & Investor Relations & Inves