Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — FY2016 Earnings Presentation
23 slides from Sembcorp Industries's earnings presentation, Feb 23, 2017
Slide 1: FY2016 Results Announcement
FY2016 Results Announcement February 23, 2017 © Sembcorp Industries 2017 Scope of Presentation • CEO’s Report • Financial Review • Group Outlook © Sembcorp Industries 2017 2
Slide 2: FY2016 Performance Round-up
CEO’s Report Tang Kin Fei Group President & CEO © Sembcorp Industries 2017 FY2016 Performance Round-up Turnover at S$7.9 billion, down 17% Profit from Operations at S$909.0 million, up 44% Net Profit at S$394.9 million, down 28% EPS at 19.9 cents ROE at 6.2% Proposing final dividend of 4.0 cents per
Slide 3: Committed to Shareholder Value
Committed to Shareholder Value 2016 Final Dividend Proposing a final dividend of 8.0 cents per share 4.0 cents FY2016 total dividend per share If approved by shareholders, to be paid on May 16, 2017 40% Payout Ratio Together with the interim dividend of 4.0 cents per share (paid in August 2016), tot
Slide 4: Utilities: A strong foundation for long-term growth
Utilities A strong Highlights foundation for long-term growth Healthy FY2016 performance • Excluding exceptional items, FY2016 net profit up 4% to S$345.5 million • Overseas operations contributed S$222.8 million, or 63% of Utilities net profit • China delivered record net profit of S$124.8 million,
Slide 5: Utilities: China
Utilities China Successful growth of a business Power Capacity Water & Wastewater Treatment Capacity (MW) (m3/day) 2.3 million 3,056 Huanghua LSBH 150MW Hebei, China 136MW completed 745 Huanghua Phase 3 Changzhi TWMP 99MW 1.3 million m3/day Shanxi, China Hebei, China Huanghua HNPG 200MW Hebei, China
Slide 6: Utilities: India
Utilities India Power Capacity Outlook (MW) A&H • Thermal energy operations 80MW Karnataka, India - Focus on stabilising the operations of 3,611 62MW completed assets and delivery of earnings - TPCIL: 86% of net capacity underpinned Karadikonda 50MW by LT PPAs Andhra Pradesh, India a - SGPL: expecte
Slide 7: Marine: Challenging macro environment
Marine © Sembcorp Industries 2017 13 Sembcorp Marine Tuas Boulevard Yard, Singapore Marine Challenging macro Highlights environment Net Orderbook (as at Dec 31, 2016) Completed Phase 2 of the Tuas S$7.8 billion Boulevard Yard in January 2017 Net Profit* S$48.3 million • Secured S$320 million in 2016
Slide 8: Marine: Diversified solutions to capture new opportunities
Marine Diversified solutions to capture new opportunities Strategic investments in technology and infrastructure to broaden and deepen design and engineering capabilities Gravifloat Steel-based modularised and floatable structures fixed to The Gravifloat design platform can integrated the seabed in
Slide 9: Urban Development
Urban Development Expecting higher Net Orderbook contributions from 240 hectares Nanjing in 2017 Land Sales • Healthy orderbook from VSIP 201 hectares • Orderbook includes a 42.6-hectare C&R plot sold in Nanjing in • Higher industrial and C&R land sales December. Profit to be recognised in Net Profi
Slide 10: Financial Review: Group Profit & Loss
Financial Review Koh Chiap Khiong Group CFO © Sembcorp Industries 2017 Group Profit & Loss (S$M) FY16 FY15 Δ% Turnover 7,907 9,545 (17) EBITDA* 1,315 1,720 (24) Profit from Operations 909 631 44 EBIT 784 625 25 Share of results: Associates & JVs 125 6 NM Net Finance Cost (372) (205) (81) Finance cos
Slide 11: Group Turnover and Profit from Operations
Group Turnover (S$M) FY16 FY15 Δ% Utilities 4,111 4,227 (3) Marine 3,544 4,968 (29) Urban Development* 7 8 (11) Other Businesses 245 342 (28) TOTAL TURNOVER 7,907 9,545 (17) * Urban Development businesses comprise mainly associates or joint ventures which are accounted for under the equity method. T
Slide 12: Group Net Profit and Utilities Net Profit
Group Net Profit (S$M) FY16 FY15 Δ% Utilities 348.0 701.5 (50) Marine 48.3 (176.4) NM Urban Development 33.3 33.5 (1) Other Businesses 37.4 45.6 (18) Corporate* (72.1) (55.3) (30) TOTAL NET PROFIT 394.9 548.9 (28) *Includes a fair value loss of S$57.7 million in FY16 and S$34.5 million in FY15 due t
Slide 13: Utilities Net Profit by Segment; Group Capex
Utilities Net Profit By Product Segment (S$M) FY16 FY15 Δ% Energy 207.7 187.6 11 Water* 88.2 89.4 (1)) Energy Water On-site Logistics 58% 25% & Solid Waste Management** 59.0 93.7 (37) 7) Corporate (9.4) (39.1) 76 6 Net Profit before exceptional items 345.5 331.6 4 FY16 Net Profit (excluding Corporat
Slide 14: Group Free Cash Flow and Borrowings
Group Free Cash Flow (S$M) FY16 FY15 CASH FLOW FROM OPERATING ACTIVITIES - before changes in working capital 1,325 1,353 - changes in working capital (367) (1,907) - tax paid (86) (150) 872 (704) CASH FLOW FROM INVESTING ACTIVITIES - divestments, dividend and interest income 385 964 - investments, c
Slide 15: Financial Indicators and Group Outlook
Financial Indicators FY16 FY15 EPS (cents) 19.9 29.2 ROE (%) 6.2 9.4 ROTA (%) 4.0 3.7 Interest Cover (times) 3.3 7.2 Per Share NAV (S$) 3.75 3.60 © Sembcorp Industries 2017 29 Group Outlook Utilities Utilities’ China operations delivered record profits in 2016. Its performance in 2017 is expected to
Slide 16: Group Outlook: Marine
Group Outlook Marine While prospects for the oil & gas industry have taken a more positive turn following the November 2016 agreement by OPEC and major non-OPEC countries to cut production, Sembcorp Marine believes a more robust recovery may take longer. Despite the challenging outlook and intense c
Slide 17: Disclaimer
Vital Partners. Essential Solutions. 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 Se
Slide 18: Appendix: Group Profit & Loss 4Q16
Appendix © Sembcorp Industries 2017 Group Profit & Loss (S$M) 4Q16 4Q15 Δ% Turnover 2,026 2,419 (16) EBITDA* 390 681 (43) Profit from Operations 292 (194) NM EBIT 244 (80) NM Share of results: Associates & JVs 48 (114) NM Net Finance Cost (127) (72) (75) Finance costs (134) (85) (57) Finance income
Slide 19: Group Turnover and PFO 4Q16
Group Turnover (S$M) 4Q16 4Q15 Δ% Utilities 1,123 986 14 Marine 830 1,327 (38) Urban Development* 3 3 (3) Other Businesses 70 103 (32) TOTAL TURNOVER 2,026 2,419 (16) * Urban Development businesses comprise mainly associates or joint ventures which are accounted for under the equity method. The turn
Slide 20: Group Net Profit and Utilities Turnover
Group Net Profit (S$M) 4Q16 4Q15 Δ% Utilities 89.2 395.2 (77) Marine 21.0 (327.5) NM Urban Development 27.3 16.0 70 Other Businesses 18.1 13.4 35 Corporate* (8.1) (36.3) 78 TOTAL NET PROFIT 147.5 60.8 143 *Includes a fair value loss of S$5.8 million in 4Q16 and S$34.5 million in 4Q15 due to the decl
Slide 21: Utilities Profit From Operations by Geography
Utilities Profit From Operations (PFO) By Geography (S$M) FY16 FY15 Δ% Singapore 198.3 203.9 (3) China 140.1 110.7 27 India 239.5 127.3 88 Rest of Asia 16.7 51.7 (68) Middle East & Africa 64.0 52.7 21 UK & the Americas 52.8 51.4 3 Corporate 12.3 (26.5) NM PFO before exceptional items 723.7 571.2 27
Slide 22: Utilities Turnover by Product Segment
Utilities Turnover By Product Segment (S$M) FY16 FY15 Δ% Energy 3,467.9 3,513.3 (1) Water 342.2 388.2 (12) On-site Logistics & Solid Waste Management 322.4 356.7 (10) Corporate 0.4 0.2 66 TOTAL TURNOVER 4,132.9 4,258.4 (3) 4Q16 4Q15 Δ% Energy 959.5 813.7 18 Water 94.1 87.1 8 On-site Logistics & Soli
Slide 23: Utilities Net Profit by Product Segment
Utilities Net Profit By Product Segment (S$M) FY16 FY15 Δ% Energy 207.7 187.6 11 Water* 88.2 89.4 (1) On-site Logistics & Solid Waste Management* 59.0 93.7 (37) Corporate (9.4) (39.1) 76 Net Profit before exceptional items 345.5 331.6 5 Exceptional items 2.5 369.9 (99) TOTAL NET PROFIT 348.0 701.5 (