Slide 1: FY2022 Results Announcement
FY2022 Results Announcement February 21, 2023
Slide 2: CEO's Report
CEO’s Report Wong Kim Yin Group President & CEO © Sembcorp Industries
Slide 3: FY2022 Group Financials
FY2022 Group Financials FY22 vs FY21 Turnover Earnings Per Share 21% S$9,395 million 47.6 cents (EPS before EI: 49.5 cents) EBITDA1 Group ROE 31% S$1,687 million 21.9% (ROE before EI: 22.7%) Adjusted EBITDA2 S$1,935 million 30% Proposing final dividend of 4.0 cents and special dividend of Net
Slide 4: Group Highlights
Group Highlights Expanding Enhancing Growing Increasing Accelerating Strategic Financing Renewables Land Bank Transformation Partnerships Strategy Renewables capacity Higher orderbook Sale of Sembcorp Strategic Tap on sustainable grew 60% YoY to achieved in 2022 Energy India Limited collaborations w
Slide 5: Business Updates: Renewables
BUSINESS UPDATES Renewables FY22 Δ% FY22 performance Net profit • Stronger performance driven by completion of Net profit before EI S$140 million 150% acquisitions in China Exceptional items1 (S$8 million) NM • Singapore solar portfolio performed better on higher power prices 140 Business updates 1
Slide 6: Renewables
BUSINESS UPDATES Renewables Southeast Asia Gross Renewables Capacity (GW) • Commissioned 285MWh Energy Storage System in Singapore in 6 months 59% 60% • Achieved 551MWp of solar capacity in Singapore including award of 10 9.8 2 SolarNova 7 project 1.5 50% • Acquired 49% stake in Bamboo Capital Group
Slide 7: Business Updates: Integrated Urban Solutions
BUSINESS UPDATES Integrated Urban Solutions FY22 Δ% FY22 performance Net profit • Lower land and property sales in China mitigated by Net profit before EI S$148 million 5% stronger demand in Vietnam and higher sales margin in Indonesia Exceptional items¹ (S$8 million) NM • Higher contribution from
Slide 8: Business Updates: Conventional Energy
BUSINESS UPDATES Conventional Energy FY22 Δ% FY22 performance Net profit • Strong performance due to higher power prices and Net profit before EI S$766 million 105% margins in Singapore and the UK Exceptional items1 (S$19 million) 90% • Gains from favorable gas hedges offset by expected credit los
Slide 9: Transforming our Portfolio from Brown to Green
2022 PROGRESS Transforming our Portfolio from Brown to Green 10 8.3 MORE Sustainable MORE 5.3 % Share of Net Profit1 from Sustainable Solutions Renewables 2.6 Gross installed capacity2, GW Sustainable Solutions 2.7 // 2020 2021 2022 2025 CAGR (2020-2022) 35% MORE 500 Sustainable 27% Urban 172 168 17
Slide 10: Financial Review
Financial Review Eugene Cheng Group CFO © Sembcorp Industries
Slide 11: Key Financials
Key Financials (Including discontinued operation#) FY22 FY21 Continuing Discontinued Continuing Discontinued Group Group S$ million Operations Operation Operations Operation Turnover 7,825 1,570 9,395 6,408 1,387 7,795 EBITDA1 1,308 379 1,687 885 403 1,288 Share of Results: Associates & JVs, Net of
Slide 12: Key Financials Highlights
Key Financials S$ million FY22 FY21# Δ% Highlights Turnover 7,825 6,408 22 EBITDA1 1,308 885 48 • Increase in turnover and EBITDA Share of Results: Associates & JVs, Net of Tax 248 206 20 driven by Conventional Energy and Adjusted EBITDA2 1,556 1,091 43 Renewables segments Net Profit before Exceptio
Slide 13: Group Turnover
Group Turnover S$ million FY22 FY21 Δ% Highlights Continuing Operations Renewables 506 354 43 • Increase in Renewables turnover Integrated Urban Solutions 444 465 (5) largely due to completion of acquisition of HYNE and higher Sustainable Solutions 950 819 16 power prices for solar operations in Sin
Slide 14: Group Net Profit
Group Net Profit S$ million FY22 FY21 Δ% Highlights Continuing Operations Renewables 140 56 150 • Strong growth in Renewables profit Integrated Urban Solutions 148 155 (5) mainly due to acquisitions completed during the year as well as higher Sustainable Solutions 288 211 36 contribution from Singap
Slide 15: Net Profit FY22 vs FY21
Group Net Profit FY22 vs FY21 Sustainable Increase Solutions Decrease • Renewables: Increased contribution due to completion of 800 acquisitions of SDIC New Energy and HYNE as well as higher power 8 (35) 333 (2) prices for the solar operations in Singapore 700 Group Net Profit (S$ million) • Integra
Slide 16: Group ROE
Group ROE S$ million FY22 FY21 Highlights Continuing Operations ROE before Exceptional Items (%) • Higher Group ROE driven by higher profit contribution in the Renewables 10.2 4.6 Conventional Energy as well as Renewables segment Integrated Urban Solutions 8.5 9.9 Conventional Energy 34.8 23.3 Group
Slide 17: Capital Expenditure and Equity Investment
Group Capital Expenditure and Equity Investment S$ million FY22 FY21 Highlights Capital Expenditure • Capital expenditure in the Renewables 488 189 Renewables segment incurred mainly for energy storage system Integrated Urban Solutions 32 50 projects in Singapore and the UK, as well as renewable pro
Slide 18: Free Cash Flow
Group Free Cash Flow S$ million FY22 FY21 Highlights Cash Flow From Operating Activities - Before Changes in Working Capital 1,692 1,285 • Cash flow from operating activities improved to S$1.7 billion mainly due - Changes in Working Capital 24 (30) to better operating performance and - Tax Paid impr
Slide 19: Borrowings
Group Borrowings S$ million Dec 31, 2022 Dec 31, 2021 Highlights Gross Debt 7,070 7,391 Total Equity 4,216 3,918 • Gross debt of S$7.1 billion as of Total Capital 11,286 11,309 December 31, 2022 represented the Group’s borrowings excluding discontinued operation which was Corporate Debt 5,932 4,893
Slide 20: Debt Profile
Group Debt Profile1 Debt Maturity Profile as at Dec 31, 2022 2,381 S$ million Green and Sustainability- linked Borrowings 1,465 1,375 1,096 Other Corporate Borrowings 1,036 33 33 706 1,322 501 Project Finance Loans 860 938 386 181 35 320 262 505 203 65 89 205 72 71 Within 1 year 1 - 2 years 2 - 3 ye
Slide 21: Liquidity
Group Liquidity S$ million Dec 31, 2022 Dec 31, 2021 Highlights Cash and Cash Equivalents 1,254 1,344 • During the year, S$300 million Borrowing Facilities sustainability-linked bond was issued Committed Facilities 9,496 9,120 and S$1.8 billion of green and sustainability-linked loan facilities Less
Slide 22: Outlook
Outlook The Group performed exceptionally in 2022, driven by strong performance from the Conventional Energy segment on the back of elevated power prices in Singapore and the UK, as well as increased operational capacity in the Renewables segment. Performance of the Renewables segment will grow, as
Slide 23: Developments to Note
Developments to Note • Power purchase agreement of Phu My 3 power plant in Vietnam will expire in early 2024. • Management continues to monitor the development in Myanmar closely. Post ECL provision of US$78 million (pre-tax), the net book value of Sembcorp Myingyan Power Company as at December 31,
Slide 24: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward-looking statements are based on current expectations, estimates, projections and assumptions about future events. Although Sembcorp Industries believes
Slide 25: Appendix
Appendix © Sembcorp Industries
Slide 26: EBITDA and Adjusted EBITDA
Group EBITDA and Adjusted EBITDA Highlights S$ million FY22 FY21 Δ% Continuing Operations • Increase in adjusted EBITDA for Renewables 352 251 40 Renewables segment was mainly Integrated Urban Solutions 130 143 (9) attributed to completion of acquisitions during the year as well as higher Sustainabl
Slide 27: Key Financials 2H22
Key Financials S$ million 2H22 2H21# Δ% Continuing Operations Turnover 3,924 3,825 3 EBITDA1 682 478 43 Share of Results: Associates & JVs, Net of Tax 115 102 13 Adjusted EBITDA2 797 580 37 Net Profit before Exceptional Items (EI) 350 172 103 Exceptional Items (35) 13 NM Net Profit – Continuing Oper
Slide 28: Turnover 2H22
Group Turnover S$ million 2H22 2H21 Δ% Continuing Operations Renewables 284 208 37 Integrated Urban Solutions 227 247 (8) Sustainable Solutions 511 455 12 Conventional Energy 3,246 3,243 0 Other Businesses 167 127 31 TOTAL TURNOVER 3,924 3,825 3 © Sembcorp Industries 2021 28 © Sembcorp Industries
Slide 29: EBITDA and Adjusted EBITDA 2H22
Group EBITDA and Adjusted EBITDA S$ million 2H22 2H21 Δ% Continuing Operations Renewables 204 144 42 Integrated Urban Solutions 70 73 4 Sustainable Solutions 274 217 26 Conventional Energy 461 314 47 Other Businesses and Corporate (53) (53) - TOTAL EBITDA1 682 478 43 Renewables 226 150 51 Integrated
Slide 30: Net Profit 2H22
Group Net Profit S$ million 2H22 2H21 Δ% Continuing Operations Renewables 64 32 100 Integrated Urban Solutions 86 92 (7) Sustainable Solutions 150 124 21 Conventional Energy 326 171 91 Other Businesses 13 12 8 Corporate (139) (135) (3) NET PROFIT before Exceptional Items 350 172 103 Exceptional Item
Slide 31: Borrowings
Group Borrowings S$ million Amount Drawn Fixed / Floating Rate* Year of Maturity Corporate debt 5,932 Medium Term Notes (issued 2010) 100 4.25% 2025 Medium Term Notes (issued 2013) 200 3.64% 2024 Medium Term Notes (issued 2014) 150 3.59% 2026 Medium Term Notes (Green bond issued 2021) 400 2.45% 2031
Slide 32: Renewables Capacity
Group Renewables Capacity As at Dec 31, 2020 As at Dec 31, 20211 As at Dec 31, 20221 Gross capacity, MW Under Under Under Installed Installed Installed Development Development Development Solar 137 542 650 613 2,503 842 - Singapore 88 137 200 120 244 201 - Vietnam 14 5 27 63 171 28 - China - - 388 -