Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — H1 2021 Earnings Presentation
23 slides from Sembcorp Industries's earnings presentation, Aug 6, 2021
Slide 1: 1H2021 Results Announcement
1H2021 Results Announcement August 6, 2021
Slide 2: CEO's Report
CEO’s Report Wong Kim Yin Group President & CEO © Sembcorp Industries 2021
Slide 3: 1H2021 Group Performance Round-up
1H2021 Group Performance Round-up 1H2021 vs 1H2020 Turnover Earnings Per Share 26% S$3,290 million 2.6 cents (EPS before EI: 14.1 cents) EBITDA1 Group ROE (annualised)3 20% S$640 million 8.5% Adjusted EBITDA2 14% The Board announces an S$744 million interim dividend of 2.0 cents Net Profit bef
Slide 4: Renewables
Renewables 1H21 Δ% 1H21 performance Net profit • Decline in contribution from India due to low wind Net profit before EI S$24 million 27% resource, steady performance from China Exceptional items - - • Positive contribution from energy storage portfolio in UK 33 Business updates 24 • Secured 105MW
Slide 5: Integrated Urban Solutions
Integrated Urban Solutions 1H21 Δ% 1H21 performance Net profit • Urban: Lower contribution from China C&R sales Net profit before EI S$63 million 2% • Higher contribution from waste business Exceptional items S$6 million 200% 69 66 63 64 Business updates • Urban business secured investment licence
Slide 6: Conventional Energy
Conventional Energy 1H21 Δ% 1H21 performance Net profit • Higher energy demand and margins in Singapore Net profit before EI S$185 million 46% and India Exceptional items (S$212 million) 30% • Good performance for UK flexible generation assets 185 Business updates 127 • Appointed by the Energy Mar
Slide 7: Transforming our Portfolio from Brown to Green
Transforming our Portfolio from Brown to Green MORE MORE MORE Sustainable Renewables 10 Sustainable Urban % Share of Net Profit from Sustainable Solutions1 Gross installed capacity, Developments gigawatts Land sales, hectares 500 2.6 172 70% 40% 2020 2025 2020 2025 LOWER Carbon Emissions We are co
Slide 8: Transforming our Portfolio from Brown to Green (As at 1H2021)
Transforming our Portfolio from Brown to Green As at 1H2021 MORE Sustainable MORE % Share of Net Profit1 from Sustainable Solutions Renewables 2.7 Gross installed capacity 2025 Target 2.7 10 GW MORE Sustainable 31% Urban 2025 Target Developments 68 500 ha Land sales annual land sales 2025 Target LOW
Slide 9: Financial Review
Financial Review Eugene Cheng Group CFO © Sembcorp Industries 2021
Slide 10: Key Financials Highlights
Key Financials S$ million 1H21 1H20# Δ% Highlights Turnover 3,290 2,617 26 EBITDA1 640 533 20 • Turnover increase driven mainly by Share of Results: Associates & JVs, Net of Tax 104 118 (12) Conventional Energy segment with Adjusted EBITDA2 744 651 14 improvement in power demand Net Profit before Ex
Slide 11: Group Turnover Highlights
Group Turnover S$ million 1H21 1H20# Δ% Highlights Renewables 146 137 7 Integrated Urban Solutions 218 197 11 • Increase in Renewables turnover driven by higher contribution from Sustainable Solutions 364 334 9 solar and energy storage businesses • Increase in Integrated Urban Solutions turnover due
Slide 12: Group Net Profit Highlights
Group Net Profit S$ million 1H21 1H20# Δ% Highlights Renewables 24 33 (27) Integrated Urban Solutions 63 64 (2) • Lower Renewables profit due to Sustainable Solutions 87 97 (10) lower wind resource in India and Conventional Energy 185 127 46 start-up costs of solar business in Vietnam Other Business
Slide 13: Net Profit Bridge 1H21 vs 1H20
Group Net Profit 350 Increase Sustainable 1H21 vs 1H20 Solutions Decrease 300 Sustainable Solutions 41 (206) • Renewables: Performance in 1H21 impacted by low wind resource in India 250 14 58 Group Net Profit (S$ million) • Integrated Urban Solutions: Lower net profit due to timing of land sales for
Slide 14: Group Capital Expenditure and Equity Investment Highlights
Group Capital Expenditure and Equity Investment S$ million 1H21 1H20# Highlights Capital Expenditure Renewables 131 62 • Capital expenditure incurred was mostly for new solar projects in Integrated Urban Solutions 14 12 Singapore and the UK battery Conventional Energy facilities 29 26 • Equity inves
Slide 15: Group Free Cash Flow Highlights
Group Free Cash Flow S$ million 1H21 1H20 Highlights Cash Flow From Operating Activities - Before Changes in Working Capital 645 516 • Cash flow from operating activities increased from S$206 million to - Changes in Working Capital (137) (254) S$480 million - Tax Paid (28) (56) • Changes in working
Slide 16: Group Borrowings Highlights
Group Borrowings S$ million Jun 30, 2021 Dec 31, 2020 Highlights Gross Debt 7,715 7,728 Total Equity 3,548 3,476 • Borrowings remained steady, as Total Capital 11,263 11,204 decrease in long-term borrowings due to loan repayment was offset by the issuance of green bonds Corporate Debt 4,902 4,721 •
Slide 17: Group Debt Profile
Group Debt Profile Maturity Profile S$ million Bonds As at Within 1-2 2-3 3-4 4–5 After Total 12% Jun 30, 2021 1 year Years Years Years Years 5 years Corporate 569 656 2,026 617 124 910 4,902 Bank Borrowing Project Finance 330 341 306 180 164 1,492 2,813 Loans Profile as at Total 899 997 2,332 797 2
Slide 18: Group Liquidity Highlights
Group Liquidity S$ million Jun 30, 2021 Dec 31, 2020 Highlights Cash and Cash Equivalents 1,159 1,032 • Green bond of S$400 million issued Borrowing Facilities out of S$3 billion Multicurrency Debt Committed Facilities 8,619 8,298 Issuance programme thereby increasing committed facilities and Less:
Slide 19: Outlook
Outlook • Significant challenges remain for economies around the world. Uncertainties continue to persist with regard to the COVID-19 pandemic with the potential resurgence of infections globally • Underlying performance of the Group will also be negatively impacted by changes in customer profile in
Slide 20: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward- looking statements are based on current expectations, estimates, projections and assumptions about future events. Although Sembcorp Industries believes
Slide 21: Appendix
Appendix © Sembcorp Industries 2021
Slide 22: Group EBITDA and Adjusted EBITDA Highlights
Group EBITDA and Adjusted EBITDA S$ million 1H21 1H20# Δ% Highlights Renewables 104 110 (5) Integrated Urban Solutions 70 59 19 • Net decrease in Renewables Adjusted Sustainable Solutions 174 169 3 EBITDA was mainly attributable to low Conventional Energy 480 413 16 wind resource in India, higher op
Slide 23: Group Borrowings
Group Borrowings S$ million Amount Drawn Fixed / Floating Rate* Year of Maturity Corporate debt 4,902 Medium Term Notes (issued 2010) 100 4.25% 2025 Medium Term Notes (issued 2013) 200 3.64% 2024 Medium Term Notes (issued 2014) 100 2.94% 2021 Medium Term Notes (issued 2014) 150 3.59% 2026 Medium Ter