Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Noble Group — FY2016 Earnings Presentation

17 slides from Singapore Exchange's earnings presentation, Feb 27, 2017

  1. Slide 1: FY2016 Results

    FY2016 Results noble group

  2. Slide 2: Rationalisation and re-aligning of businesses to focus on core franchises

    2 Rationalisation and re-aligning of businesses to focus on core franchises Sale of remaining stake in Noble Agri completed US$500 million rights issue completed Sale of Noble Americas Energy Solutions to Calpine Corporation completed European Power & Gas book sold Metals business downsized and repo

  3. Slide 3: Underlying Performance

    3 Underlying Performance Twelve Months Ended 31 December 2016  Resilience of franchise demonstrated by stability in  Energy and Gas & Power Segments earnings adversely volume of physical commodities delivered in Energy impacted by conservative approach to liquidity and Mining & Metals Segments man

  4. Slide 4: Underlying Performance (continued)

    4 Underlying Performance (continued) Twelve Months Ended 31 December 2016  Headcount reduced by approximately 30% in 2016.  Capital raising initiatives and conservative approach to One-time increase in SAO expenses, due to costs liquidity management resulted in a reduction in debt, related to rati

  5. Slide 5: Consolidated Income Statement Summary

    5 Consolidated Income Statement Summary Year Ended 31 December 2016 (US$M/Tonnes M) FY2016 FY2015 Tonnage(1) 222 270 Revenue(1) 45,524 60,702 Operating income from supply chains, net(1) 808 1,148 Operating income margin (%) 1.77% 1.89% Profit/(loss) on supply chain assets(1) 212 (96) Share of profit

  6. Slide 6: Segment Results: Energy

    6 Segment Results Energy Oil Liquids Energy Coal  The Oil Liquids franchise recorded strong volumes,  The Energy Coal business continued its solid with tonnage rising 6% year-on year as we continue performance on steady volume, maintaining our to execute on term supply deals, pipeline flows and ma

  7. Slide 7: Segment Results: Gas & Power

    7 Segment Results Gas & Power Energy Solutions Gas & Power  The sale of Noble Americas Energy Solutions  The Gas & Power business is now comprised of two (“NES”) to Calpine Corporation closed on 1 key franchises – North America Gas & Power and December 2016. Global LNG.  The Global LNG franchise

  8. Slide 8: Segment Results: Mining & Metals

    8 Segment Results Mining & Metals Metals Carbon Steel Materials  The Metals business was restructured to focus on  Carbon Steel Materials achieved a significant Base Metals in Asia and the global integrated turnaround in performance in FY2016 compared to Aluminum franchise. FY2015, as the business

  9. Slide 9: Segment Results: Corporate

    9 Segment Results Corporate  The Corporate & Others Segment incorporates the Logistics business as well as the investments in our major associates and joint ventures including Yancoal Australia Limited (“Yancoal”). US$67 million of the 2016 total US$84 million(1) of the Group’s share of losses of a

  10. Slide 10: Working Capital & Capital Structure

    10 Working Capital & Capital Structure  Working capital levels and credit largely stable post Q1 2016. Trade & other payables decreased in Q1 2016 following tightening of uncommitted unsecured bank lines ahead of May 2016 bank debt refinancing  Following the completion of the rights issue and vari

  11. Slide 11: Leverage & Liquidity

    11 Leverage & Liquidity  Net debt to capital at 42% as at 31 December 2016, compared to 55% as at 31 December 2015, in line with management’s commitment to reduce leverage  Liquidity headroom(1) increased to US$2 billion as at 31 December 2016 compared to approximately US$800 million as at 30 June

  12. Slide 12: Moving Forward

    Moving Forward noble group

  13. Slide 13: Noble Group by the Numbers

    13 Noble Group by the Numbers A leading global supply chain manager London Stamford Houston By the Numbers(1): Dubai Hong Kong Total Tonnage: 222 million tonnes Revenue: US$45.5 billion Singapore Oil Liquids: 115 million tonnes Energy Coal: 65 million tonnes(2) Head Office Regional Hub Gas & Power:

  14. Slide 14: Our Business Mix and How We Have Changed

    14 Our Business Mix and How We Have Changed Focus on core franchises and key regions Global Asia US Iron Ore & Oil Gas & Energy Met Coal & Energy Metals Special Liquids Power Coal Coke Retail Ores Prioritisation and Focus on High- Return, Market-Leading Franchises & Regions Global Americas Asia + EM

  15. Slide 15: Cost Discipline

    15 Cost Discipline Additional cost rationalisation efforts in 1H 2017 to underpin future profitability  Excluding variable SAO expenses, current underlying  US$450 million SAO expenses target based on US$1 run rate already down more than 20% from 2015 billion 2018-19 operating income from supply c

  16. Slide 16: Priorities and Targets

    16 Priorities and Targets Targeting operating income from supply chains of c.US$1 billion and EBIT of c.US$550 million Business Priorities 2018-2019 Annual Earnings Target (US$M)  Focus on commercial opportunities and invest in high return businesses. Estimated split of earnings across the 1,000 bu

  17. Slide 17: Slide 17

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