Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Sino-Environment Technology Group — FY2008 Earnings Presentation

25 slides from Singapore Exchange's earnings presentation, May 21, 2009

  1. Slide 1: Results briefing Fourth Quarter and Full Year 2008

    Results briefing Fourth Quarter and Full Year 2008 2008 2008 4

  2. Slide 2: Agenda

    Agenda • Summary of developments for 2008 2008 • Financial results • Effects of Convertible Bond & SWAP • Segmental Results • Outlook

  3. Slide 3: Summary of developments for FY2008

    Summary of developments for FY2008: 2008 - Strong top line (revenue) and EBITDA growth at 67% and 34% respectively for FY2008 2008 (EBITDA) 67% 34% - Strong top line growth for all segments - New segment for FY2008: desulphurisation of coal-fired power plants. Substantially completed 2 projects in 2

  4. Slide 4: Summary of developments for FY2008 (Continued)

    Summary of developments for FY2008 (Continued): 2008 ( ) - Successfully raised capital via issuance of S$149 million of Convertible Bonds to fund de-nitrogenation production plant and M&A 1.49 - Building de-nitrogenation production plant; plant operational in 2Q2009 2009 - Acquired remaining 40% of

  5. Slide 5: Full Year 2008 (FY 2008)

    Full Year 2008 (“FY 2008”) 2008 RMB millions FY 2008 FY 2007 % change （百万人民币） 2008年 2007年 % 变动 Revenue 775.8 463.8 67% Gross Profit 296.2 222.2 33% Gross Profit Margin Mainly due 38% 48% to mark-to- (Loss)/Profit before Tax ( )/ market (28.6) 171.9 (117)% losses of Net Loss)/Profit after Tax ( )/ (4

  6. Slide 6: Healthy revenue and EBITDA growth trend

    Healthy revenue and EBITDA growth trend RMB ’millions （百万人民币） 2008 2007 2006 2005 2004 Proforma Proforma Revenue 775.8 463.8 175.5 99.6 69.6 Gross Profit 296.2 222.2 104.1 60.4 39.7 Mainly due to Gross Profit Margin mark-to- 38% 48% 59% 61% 57% Net (Loss) / Profit before market losses (28.6) 171.9 9

  7. Slide 7: 4th Qtr 2008 vs 4th Qtr 2007

    4th Qtr 2008 vs 4th Qtr 2007 2008 4 2007 4 RMB millions 4Q 2008 4Q 2007 % change （百万人民币） 2008年 2007年 % 变动 第4季 第4季 Revenue 201.6 139.8 44% Gross Profit 60.7 63.5 (4)% Gross Profit Margin 30% 45% (Loss)/Profit before Tax ( )/ Mainly due (106.5) 45.0 (337)% to mark-to- Net Loss)/Profit after Tax ( )/ m

  8. Slide 8: 4th Qtr 2008 vs 3rd Qtr 2008

    4th Qtr 2008 vs 3rd Qtr 2008 2008 4 2008 3 RMB millions 4Q 2008 3Q 2008 % change （百万人民币） 2008年 2008年 % 变动 第4季 第3季 Revenue 201.6 215.3 (6)% Gross Profit 60.7 77.1 (21)% Gross Profit Margin 30% 36% Loss before Tax (106.5) (43.5) (145)% Net Loss Profit after Tax (111.7) (46.7) (139)% - Equity holders o

  9. Slide 9: Financial ratios and balances

    Financial ratios and balances 31 Dec 31 Dec 2008 2007 Debt to equity ratio 0.99 0.01 债务和股东权益的比例 Trade debtors turnover days (including retentions) 35 42 应收帐款平均付款天数 Current ratio 8.5 10.2 流动资产和流动负载的比例 In millions of RMB 百万人民币 百万人民币:: Cash on hand and at banks 现金 727.9 689.2 In millions 百万 百万:: No.. o

  10. Slide 10: Effects of Convertible Bond + Swap

    Effects of Convertible Bond + Swap RMB’millions Balance sheet: Borrowings (liability) 622.6 (A) 735.4 Embedded financial derivatives (liability) 112.8 (B) Financial derivatives – equity swap (asset) 130.0 (C) Income Statement: Marked to market losses 226.4 (D) Interest expense on bonds 30.9 Note: (A

  11. Slide 11: Convertible Bond + Total Return Swap

    Convertible Bond + Total Return Swap Overview of Structure  8 July 2008, issue S$149m 4% convertible bonds (“CB”) due 2013. S$67.4m used to enter into cash settled equity swap. SG$67,358,026 Swap  Convertible bond + swap structure provides a Prepayment (45% of secure and cost efficient hedge for C

  12. Slide 12: Revenue

    Revenue 900,000 800,000 700,000 600,000 500,000 4QU,0UU 300,000 200,000 100,000 All Revenue (in RMIB'000) OM FY cna) vil -— 2006 12

  13. Slide 13: Gross Profit

    Gross Profit SinoEnv Gross Profit - all (in RMB'000) 330,000 300,000 250,000 200,000 —— 10 10,000 100,000 50,000 no = 10h 10 {H OM FY 13

  14. Slide 14: Segmental Contribution

    Segmental Contribution FY2008 FY2007 2008 2007 14

  15. Slide 15: Waste gas treatment & recovery (VOC)

    Waste gas treatment & recovery (VOC) RMB millions 4Q 2008 4Q 2007 %change FY 2008 FY 2007 %change （百万人民币） 2008年 2007年 %变动 2008年 2007年 %变动 第4季 第4季 Revenue 76.3 83.8 (9)% 327.3 271.4 21% 收入 Gross Profit 33.2 43.5 (24)% 168.4 152.0 11% 毛利 Gross Profit Margin 44% 52% 51% 56% 毛利率 ASP 3.2 6.4 (50)% 6.8 6.

  16. Slide 16: Waste gas treatment segment (VOC)

    Waste gas treatment segment (VOC) 16

  17. Slide 17: Desulphurisation

    Desulphurisation RMB millions 4Q 2008 4Q 2007 %change FY 2008 FY 2007 %change （百万人民币） 2008年 2007年 %变动 2008年 2007年 %变动 Revenue 35.0 - N/M 151.6 - N/M 收入 Gross Profit (5.1) - N/M 21.3 - N/M 毛利 Gross Profit Margin (15)% - N/M 14% - N/M 毛利率 17

  18. Slide 18: Desulphurisation

    Desulphurisation Contracts 1. Huadian Xinjiang Wei Hu Liang deSOx contract 2 x 125MW RMB62.5m - commenced in 1Q2008, completed - 6,250 2. Huatai Group deSOx contract 3 x 100MW RMB63m - commence in 2Q2008, substantially completed - - 6,300 3. Fujian Putian Power Plant deSOx contract, 2 x 400MW RMB118

  19. Slide 19: Dust elimination segment

    Dust elimination segment RMB millions 4Q 2008 4Q 2007 %change FY 2008 FY 2007 %change （百万人民币） 2008年 2007年 %变动 2008年 2007年 %变动 Revenue 73.4 54.1 36% 236.3 180.4 31% 收入 Gross Profit 31.4 18.7 68% 96.3 65.5 47% 毛利 Gross Profit Margin 43% 34% 41% 36% 毛利率 19

  20. Slide 20: Dust elimination segment

    elimination segment SinoEnv Dust elimination Revenue (in RMB'000) 240,000 236,279 200,000 180,411 150,000 all 100,000 fe alll} 50,000 vi iQ 4Q 20

  21. Slide 21: Waste water treatment segment

    Waste water treatment segment RMB millions 4Q 2008 4Q 2007 %change FY 2008 FY 2007 %change （百万人民币） 2008年 2007年 %变动 2008年 2007年 %变动 Revenue 16.9 1.9 789% 60.6 12.1 401% 收入 Gross Profit 3.9 1.4 178% 13.0 4.8 171% 毛利 Gross Profit Margin 23% 74% 21% 39% 毛利率 21

  22. Slide 22: Waste water treatment segment

    Waste water treatment segment 22

  23. Slide 23: Outlook & Growth Drivers

    Outlook & Growth Drivers - Line 1 of deNOx catalyst production plant operational in 2Q2009, line 2 in 3Q2009. Overwhelming demand for deNOx catalysts in domestic market. Vertical integration paths inroad to winning more de-nitrogenation engineering project (epc) 2009 2009 - Order book in excess of R

  24. Slide 24: Management Prospects

    Management Prospects  Management believe in Group’s strong financial and business fundamentals that will enable us to ride the waves.  Strong operating cashflow allows Group to capitalise on opportunities amid tight credit market.  Consolidation of the environmental players in China and global ma

  25. Slide 25: www.sino-env.com

    www.sino- www.sino-env.com

Sino-Environment Technology Group — FY2008 Earnings Presentation on 6ix