Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — Q1 2017 Earnings Presentation
14 slides from Sembcorp Industries's earnings presentation, May 3, 2017
Slide 1: 1Q2017 Results Announcement
1Q2017 Results Announcement May 3, 2017 © Sembcorp Industries 2017 Scope of Presentation • CEO’s Report • Financial Review • Group Outlook © Sembcorp Industries 2017 2
Slide 2: CEO's Report: 1Q2017 Performance Round-up
CEO’s Report Neil McGregor Group President & CEO © Sembcorp Industries 2017 1Q2017 Performance Round-up Turnover at S$2.1 billion, up 13% Profit from Operations at S$275.1 million, up 16% Net Profit at S$119.1 million, up 11% EPS at 6.1 cents ROE (annualised) at 7.2% © Sembcorp Industries 2017 4
Slide 3: Utilities and Marine Business Updates
Utilities Weak performance Business Updates from India Singapore • Improved performance despite continued intense competition in the power market Net Profit India S$55.3 million È27% • SGPL commenced full commercial operations in February 2017 − Focusing on stabilising plant operations • Excluding S
Slide 4: Urban Development Performance
Urban Development Strong 1Q2017 performance Total Net Orderbook Total Land Sales 231 hectares 85 hectares • Strong orderbook for industrial land Net Profit • Nanjing 42.6-hectare C&R plot in Vietnam S$37.2 million Ç30x boosts 1Q2017 land sales X Commercial & Residential • Land sales in all markets e
Slide 5: Group Profit & Loss and Turnover
Group Profit & Loss (S$M) 1Q17 1Q16 Δ% Turnover 2,140 1,895 13 EBITDA* 352 313 13 Profit from Operations 275 238 16 EBIT 218 202 8 Share of results: Associates & JVs 57 36 61 Net Finance Cost (125) (77) (63) Finance costs (129) (86) (50) Finance income 4 9 (56) PBT 150 161 (7) Tax (15) (30) 50 Non-C
Slide 6: Group Profit from Operations and Net Profit
Group Profit from Operations (PFO) (S$M) 1Q17 1Q16 Δ% Utilities 175.1 154.7 13 Marine 59.5 83.7 (29) Urban Development 39.2 2.3 NM Other Businesses 6.1 8.9 (32) Corporate (4.8) (12.1) 60 TOTAL PFO 275.1 237.5 16 © Sembcorp Industries 2017 11 Group Net Profit (S$M) 1Q17 1Q16 Δ% Utilities 55.3 75.2 (2
Slide 7: Utilities Net Profit
Utilities Net Profit By Geography (S$M) 1Q17 1Q16 Δ% Singapore* 34.2 29.8 15 China 22.1 25.6 (14) Singapore Overseas 50% 50% India (16.6) (1.3) NM Rest of Asia 8.7 5.7 53 Middle East & Africa 9.5 12.4 (23) UK & the Americas 10.0 13.8 (28) 1Q17 Net Profit (excluding Corporate and Corporate (7.4) (10.
Slide 8: Capex, Equity Investment and Free Cash Flow
Group Capex and Equity Investment (S$M) 1Q17 1Q16 Capital Expenditure – Utilities 282.0 88.3 – Marine 50.2 101.3 – Urban Development / Other Businesses 2.9 2.2 335.1 191.8 Equity Investment – Utilities - 72.6 – Marine - 52.5 – Urban Development 6.7 2.5 6.7 127.6 © Sembcorp Industries 2017 15 Group F
Slide 9: Group Borrowings and Financial Indicators
Group Borrowings (S$M) Mar 31,17 D/C ratio* Dec 31,16 D/C ratio* Gross Debt Corporate debt 1,995 0.11 1,697 0.10 Project finance debt 3,240 0.18 3,369 0.19 Sembcorp Marine debt 4,345 0.24 4,155 0.24 9,580 0.54 9,221 0.53 Less: Cash and cash equivalents (1,853) (1,883) Net debt 7,727 0.43 7,338 0.42
Slide 10: Outlook: Utilities
Group Outlook Utilities The performance of Utilities’ China operations in 2017 is expected to be lower than 2016 due to the expiry of the Yangcheng cooperative joint venture agreement in 2016. In India, Sembcorp has two thermal power plants and renewable energy assets totalling over 3,800MW. The sec
Slide 11: Outlook: Urban Development and Group
Group Outlook Urban Development The Urban Development business is expected to deliver a better performance in 2017, underpinned by land sales in its urban developments in Vietnam, China and Indonesia. Group The market environment is expected to remain challenging in 2017. With strong capabilities an
Slide 12: Appendix: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward- looking statements. These forward-looking statements are based on current expectations, projections and assumptions about future events. Although Sembcorp Industries believes that these
Slide 13: Utilities Turnover and PFO by Geography
Utilities Turnover By Geography (S$M) 1Q17 1Q16 Δ% Singapore 750.3 534.1 41 China 30.7 39.3 (22) India 362.5 213.2 70 Rest of Asia 58.9 - NM Middle East & Africa 25.7 24.7 4 UK & the Americas 94.5 88.9 6 TOTAL TURNOVER 1,322.6 900.2 47 Note: Figures are stated before intercompany eliminations © Semb
Slide 14: Utilities Turnover and PFO by Product Segment
Utilities Turnover By Product Segment (S$M) 1Q17 1Q16 Δ% Energy 1,152.9 737.1 56 Water 87.8 81.1 8 On-site Logistics & Solid Waste Management 81.9 82.0 - TOTAL TURNOVER 1,322.6 900.2 47 Note: Figures are stated before intercompany eliminations © Sembcorp Industries 2017 27 Utilities Profit From Oper