Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — FY2023 Earnings Presentation
31 slides from Sembcorp Industries's earnings presentation, Feb 20, 2024
Slide 1: FY2023 Results Announcement
FY2023 Results Announcement February 20, 2024
Slide 2: CEO's Report
CEO’s Report Wong Kim Yin Group President & CEO © Sembcorp Industries
Slide 3: FY2023 Group Financials
FY2023 Group Financials Continuing Operations FY23 vs FY22# Turnover Earnings Per Share (before EI) S$7,042 million 10% 57.1 cents (EPS: 57.2 cents) EBITDA1 Group ROE3 before EI 37% 23.8% (ROE: 23.8%) S$1,789 million Adjusted EBITDA2 S$2,053 million 32% Proposing final dividend of 8.0 cents, N
Slide 4: Gas and Related Services: Achieving Earnings Certainty
FY23 BUSINESS UPDATES Gas and Related Services: Achieving Earnings Certainty Group Portfolio1 Cashflow Certainty Enhanced with Long-term Power 6% 3% Purchase Agreements (PPAs) 35% Micron Semiconductor: 18-year PPA to supply up to 55% 450MW Singtel: 10-year PPA with estimated annual contract 62%
Slide 5: Renewables: Accelerating Growth
FY23 BUSINESS UPDATES Renewables: Accelerating Growth Gross Renewables Capacity* (GW) China 30 30.00 • Year-on-year capacity increased by 3.0GW 25 o Organic growth in key partnership platforms 25 25.00 o Acquired 100% stake in portfolios totalling 292MW 20 20.00 India • Growth through greenfield and
Slide 6: Integrated Urban Solutions: Building up Land Bank
FY23 BUSINESS UPDATES Integrated Urban Solutions: Building up Land Bank Land Sales (ha) Urban – Lower Commercial & Residential (C&R) Sales 248 • Increase in Indonesia and Vietnam industrial land sales 172 • However, earnings declined as contribution from C&R sales and residential units were lower ye
Slide 7: Driving Energy Transition
Driving Energy Transition Portfolio Transformation Continues 25 MORE Achieve Gas Earnings Stability Renewables 9.81 10 Gross installed renewables • Contracted long-term power purchase 2.6 capacity, GW agreements, providing cashflow certainty to fund renewables growth 2020 Feb-24 2025 2028 Target* Ta
Slide 8: Decarbonisation Solutions: Advancing Transition Pathways
FY23 BUSINESS UPDATES Decarbonisation Solutions: Advancing Transition Pathways Renewables • Secured conditional approval from EMA for the largest import license to date to import 1.2GW of Imports low-carbon electricity from Vietnam to Singapore • Exclusive discussions to import 1GW of low-carbon ele
Slide 9: Financial Review
Financial Review Eugene Cheng Group CFO © Sembcorp Industries
Slide 10: Key Financials Highlights
Key Financials (S$ million) FY23 FY22 Δ% Highlights Turnover 7,042 7,825 (10) • Turnover declined mainly due to EBITDA1 1,789 1,308 37 lower gas and power prices in the Share of Results: Associates & JVs, Net of Tax 264 248 6 Gas and Related Services segment, Adjusted EBITDA2 2,053 1,556 32 mitigate
Slide 11: Group Turnover Highlights
Group Turnover S$ million FY23 FY22 Δ% Highlights Gas and Related Services 5,457 6,547 (17) • Lower turnover for Gas and Related Renewables 703 503 40 Services due to lower gas sales prices in Singapore and lower power Integrated Urban Solutions 418 444 (6) prices in the UK Decarbonisation Solutions
Slide 12: Group Net Profit Highlights
Group Net Profit S$ million FY23 FY22 Δ% Highlights Gas and Related Services 809 622 30 • Higher corporate cost driven by higher Renewables 200 141 42 finance cost due to increase in borrowings to fund acquisitions of Integrated Urban Solutions 121 150 (19) renewables portfolios Decarbonisation Solu
Slide 13: Net Profit FY23 vs FY22 Bridge
Group Net Profit FY23 vs FY22 Positive / Increase Negative / Decrease • Gas and Related Services: Better performance from Singapore, offset by decline in earnings in the UK and 59 (29) 133 2 an expected credit loss provision of S$18 million for (10) 8 (69) Group Net Profit (S$ million) 187 Sembc
Slide 14: Group ROE Highlights
Group ROE S$ million FY23 FY22 Highlights ROE before Exceptional Items (%) • Higher Group ROE driven by strong Gas and Related Services 40.7 34.8 profit contributions in the Gas and Renewables 11.0 10.2 Related Services as well as the Renewables segments Integrated Urban Solutions 6.7 8.5 • Assuming
Slide 15: Group Capital Expenditure and Equity Investment Highlights
Group Capital Expenditure and Equity Investment S$ million FY23 FY22 Highlights Capital Expenditure • Gas and Related Services capital Gas and Related Services 213 109 expenditure increased due to Renewables 595 488 construction of a new multi-utilities centre and a 600MW hydrogen- Integrated Urban
Slide 16: Group Free Cash Flow Highlights
Group Free Cash Flow S$ million FY23 FY22 Highlights Cash Flow From Operating Activities • Net cash from operating activities - Before Changes in Working Capital 1,687 1,692 before changes in working capital stood at S$1.7 billion while net cash - Changes in Working Capital (16) 24 from operating ac
Slide 17: Group Borrowings Highlights
Group Borrowings S$ million Dec 31, 2023 Dec 31, 2022 Highlights Gross Debt 7,254 7,070 Total Equity 4,872 4,216 • Gross debt increased mainly due to borrowings incurred for the acquisitions Total Capital 12,126 11,286 of renewables and consolidation of underlying borrowings of subsidiaries acquired
Slide 18: Group Debt Profile
Group Debt Profile Debt Maturity Profile as at Dec 31, 2023 S$ million 2,793 Green and Sustainability- 1,725 linked Borrowings 1,281 Other Corporate Borrowings 56 1,096 954 725 422 492 Project Finance Loans 970 405 451 56 562 503 248 399 576 255 101 104 55 108 171 Within 1 year 1 - 2 years 2 - 3 yea
Slide 19: Group Liquidity Highlights
Group Liquidity S$ million Dec 31, 2023 Dec 31, 2022 Highlights Cash and Cash Equivalents 767 1,254 Proactive capital management: • Deploy excess cash to fund Borrowing Facilities investments and debt repayment Committed Facilities 9,662 9,496 • Borrowings increased due to Less: Amount Drawn Down (7
Slide 20: Outlook
Outlook The Group performed well in 2023, underpinned by the strong contribution of the Gas and Related Services segment, on the back of better performance in the Singapore power market and earnings growth in the Renewables segment. Earnings of the Gas and Related Services segment are expected to re
Slide 21: Developments to Note
Developments to Note • Phu My 3 BOT Power Plant will reach the end of its Term of Operation on February 29, 2024 • Major maintenance for Singapore cogeneration plants for ~60 days in the first half of 2024 21 © Sembcorp Industries
Slide 22: 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 23: Appendix
Appendix © Sembcorp Industries
Slide 24: Group EBITDA and Adjusted EBITDA Highlights
Group EBITDA and Adjusted EBITDA S$ million FY23 FY22 Δ% Highlights Gas and Related Services 1,088 886 23 Renewables 513 353 45 • Higher EBITDA led by stronger results from the Gas and Related Services as Integrated Urban Solutions 120 131 (8) well as Renewables segments and specialised construction
Slide 25: Key Financials 2H23
Key Financials S$ million 2H23 2H22 Δ% Continuing Operations Turnover 3,384 3,924 (14) EBITDA1 796 682 17 Share of Results: Associates & JVs, Net of Tax 118 115 3 Adjusted EBITDA2 914 797 15 Net Profit before Exceptional Items (EI) 416 350 19 Exceptional Items (4) (35) 89 Net Profit – Continuing Ope
Slide 26: Group Turnover
Group Turnover S$ million 2H23 2H22 Δ% Continuing Operations Gas and Related Services 2,599 3,246 (20) Renewables 329 282 17 Integrated Urban Solutions 212 227 (7) Decarbonisation Solutions 11 2 NM Other Businesses 233 167 40 TOTAL TURNOVER 3,384 3,924 (14) © Sembcorp Industries 2021 26 © Sembcorp I
Slide 27: Group Net Profit before Exceptional Items
Group Net Profit before Exceptional Items S$ million 2H23 2H22 Δ% Continuing Operations Gas and Related Services 374 326 15 Renewables 81 65 25 Integrated Urban Solutions 72 87 (17) Decarbonisation Solutions (10) (2) NM Other Businesses 16 13 23 Corporate (128) (139) 8 - Interest cost (90) (63) (43)
Slide 28: Group Net Profit
Group Net Profit S$ million 2H23 2H22 Δ% Including Exceptional Items Gas and Related Services 374 307 22 Renewables 77 57 35 Integrated Urban Solutions 72 80 (10) Decarbonisation Solutions (10) (3) (233) Other Businesses 16 13 23 Corporate (128) (139) (8) - Interest cost (90) (63) 43 - Others (38) (
Slide 29: Group EBITDA and Adjusted EBITDA
Group EBITDA and Adjusted EBITDA S$ million 2H23 2H22 Δ% Continuing Operations Gas and Related Services 507 461 10 Renewables 250 205 22 Integrated Urban Solutions 65 70 (7) Decarbonisation Solutions (11) (1) NM Other Businesses and Corporate (15) (53) 72 TOTAL EBITDA1 796 682 17 Gas and Related Ser
Slide 30: Group Borrowings
Group Borrowings S$ million Amount Drawn Fixed / Floating Rate* Year of Maturity Corporate Debt 5,939 Medium Term Notes (issued 2010) 100 4.25% 2025 Medium Term Notes (issued 2013) 200 3.64% 2024 Medium Term Notes (issued 2014) 150 3.593% 2026 Medium Term Notes (Green bond issued 2021) 400 2.45% 203
Slide 31: Group Renewables Capacity
Group Renewables Capacity As at Dec 31, 20221 As at February 20242 Gross capacity, MW / MWh Installed Under Construction Installed Under Construction Solar 2,479 906 3,068 2,604 - Singapore 244 201 352 218 - Vietnam 171 28 259 7 - Indonesia - 1 1 2 - China 1,516 109 1,800 777 - India 548 567 656 1,1