Yangzijiang Shipbuilding (holdings) Ltd. · SGX:BS6

Yangzijiang Shipbuilding (holdings) — FY2022 Earnings Presentation

27 slides from Yangzijiang Shipbuilding (holdings)'s earnings presentation, Feb 23, 2023

  1. Slide 1: FY2022 Results Presentation

    FY2022 Results Presentation 23 February 2023

  2. Slide 2: Disclaimer

    Disclaimer The presentation is prepared by Yangzijiang Shipbuilding (Holdings) Ltd. (the “Company”) and is intended solely for your personal reference and is strictly confidential. The information contained in this presentation is subject to change without notice, its accuracy is not guaranteed, and

  3. Slide 3: FY2022 Highlights

    FY2022 Highlights Record-breaking financial results; Operational performance exceeded full year targets Record RMB20.7 billion 16% Revenue Return on equity ↑ 37% yoy; Margins improved to 15% ↑ 6% from 10% for FY2021 USD4.43 billion PATMI Record RMB2.6 billion from continuing Order-win More than doub

  4. Slide 4: Financial Highlights

    SECTION I FINANCIAL HIGHLIGHTS

  5. Slide 5: Income Statement Highlights

    Income Statement Highlights Record-high revenue with expanding gross margins Financial 2H2022 2H2021 Change FY2022 FY2021 Change Full Year Comments Highlights RMB'000 RMB'000 % RMB'000 RMB'000 % The Group delivered 67 vessels to customers in FY2022 vs 50 vessels in FY2021. As a result, shipbuilding

  6. Slide 6: Revenue Breakdown

    Revenue Breakdown Improvement across all three business segments 2H2022 2H2021 FY2022 FY2021 Continuing operations RMB’000 % RMB’000 % RMB'000 % RMB'000 % Revenue 9,850,997 100 8,420,310 100 18,372,103 100 13,198,473 100 SHIPBUILDING Cost (8,525,830) (87) (7,510,826) (89) (15,956,834) (87) (11,641,6

  7. Slide 7: Profitability Trend

    Profitability Trend Bottom line remains resilient after the spin-off of our investment arm Gross Profit and Net Profit Attributable to Shareholders (FY2019 to FY2021 includes contributions from investment segment) 10,000 35% 9,000 28.4% 30% 8,000 25% 21.7% 7,000 18.3% 20% 22.1% 15.4% 6,000 RMB’mln 1

  8. Slide 8: Profitability Trend: EBIT and EBITDA

    Profitability Trend EBIT and EBITDA on the rise since FY2020; FY2022 margins normalized due to the normalization of foreign exchange gains EBIT AND EBITDA (Excluding contributions from investment segment) 5,000 23.0% 25% 4,500 19.0% 18.0% 20% 4,000 15.0% 16.0% 13.0% 15% 3,500 11.0% 10.0% RMB’mln 10%

  9. Slide 9: Balance Sheet Highlights

    Balance Sheet Highlights Strong balance sheet position with net cash position 31 Dec 2022 31 Dec 2021 Financial Highlights RMB'000 RMB'000 Property, Plant and Equipment 7,277,768 6,335,345 - Including Property, Plant and Equipment - Shipping 3,182,229 2,184,691 Cash & Cash Equivalents 10,778,393 12,

  10. Slide 10: Segmental Review: Shipbuilding

    SECTION II SEGMENTAL REVIEW: SHIPBUILDING

  11. Slide 11: Shipbuilding Segment: Revenue Trend

    Shipbuilding Segment: Revenue Trend On an upward trajectory since FY2020 with a growing diversity of ship profile Shipbuilding Revenue Breakdown 20,000 173 18,000 110 541 435 16,000 Oil Tanker & Chemical 14,000 573 Tanker 706 LNG RMB’mln 886 636 12,000 373 1,392 Others 10,000 529 2,938 9,006 17,113

  12. Slide 12: Shipbuilding Segment: Orderbook Overview

    Shipbuilding Segment: Orderbook Overview Robust and diversified orderbook; revenue visibility extends all the way into FY2026 140 vessels US$10.51 billion in contract value 7.79 million CGT Delivery: 2023 - 2026 Containerships Bulk Carriers LNG/LPG/LEG 94 units 39 units 7 units Total CGT – 6.77 mill

  13. Slide 13: Shipbuilding Segment: Historic-high Outstanding Orderbook

    Shipbuilding Segment: Historic-high Outstanding Orderbook Order-win momentum continues; achieves record outstanding orderbook value of US$10.5 billion 250 10.5 8.7 8.5 10.0 8.1 200 6 3.1 3 5.0 2.9 2.6 2.4 7 150 7 US$’ billion Vessel Qty 1 7 5 43 37 0.0 28 39 100 2 1 1 6 4 4 -5.0 50 38 50 38 40 17 20

  14. Slide 14: Shipbuilding Segment: Customer Profile

    Shipbuilding Segment: Customer Profile Most customers are global top-tier liners; Cross continent customer exposure Orderbook Overview 3.5% 1.8% 0.4% 3.9% 2.8% 8.6% 0.3% 10.6% 19.5% Other European Countries 4.7% 2.6% Bulgaria 3.8% 41.6% 34.1% 39.2% Japan 21.6% Canada Greater China 50.4% 48.4% 52.7%

  15. Slide 15: Shipbuilding Segment: Order-win

    Shipbuilding Segment: Order-win FY2022 order-wins more than doubled initial target New contracts secured in terms of vessel quantity and contract value 140 8.00 7.41 5 7.00 120 3 2022 ORDER-WIN 6.00 100 32 Target 5.00 US$2.00 billion US$’ billion 4.43 Vessel Qty 80 4.00 Achieved 60 60 4 4 3.00 US$4.

  16. Slide 16: Shipbuilding Segment: Vessel Delivery

    Shipbuilding Segment: Vessel Delivery 71 vessels were built in 2022, including 67 vessels delivered to customers and 4 vessels added into own fleet 80 70 67 3 59 4 60 3 50 50 46 45 20 2022 Delivery Target 5 1 70 Vessel Qty 40 24 44 2022 Vessel Delivery 30 31 33 67 20 40 (A total of 71 vessels were b

  17. Slide 17: Segmental Review: Shipping

    SECTION III SEGMENTAL REVIEW: SHIPPING

  18. Slide 18: Shipping Segment: Charter Income Trend

    Shipping Segment: Charter Income Trend Increasing revenue contributions from shipping segment driven by larger fleet size and higher charter rates 1,600 45.0% 40.1% 40.7% 1,400 40.0% 36.4% 35.0% 1,200 31.7% 30.0% 1,000 23.9% RMB’mln 25.0% 800 Charter Income 20.0% 1,383 Profit Margin 600 15.0% 960 40

  19. Slide 19: Shipping Segment: Diversified Fleet Portfolio

    Shipping Segment: Diversified Fleet Portfolio The addition of two bulk carriers and two containerships further diversified the Group’s fleet to better meet customers’ demand Average Age Fleet Size Capacity (yrs) 24 1,787,100 DWT Bulk Carriers 7.50 (↑ 3) (↑ 246,000 DWT) Stainless Steel 4 10.92 72,100

  20. Slide 20: Business Strategies and Outlook

    SECTION VI BUSINESS STRATEGIES AND OUTLOOK

  21. Slide 21: Core Business Strategies

    Core Business Strategies Accelerating the pathway towards green megatrends Facilitate Organic Business Growth & Deliver Sustainable Shareholder Returns Deepening our Focusing on Growing value through Shipbuilding Capability Higher Value-added Orders Advantaged Growth Projects  Methanol dual-fuel ve

  22. Slide 22: Shipping Business Strategies

    Shipping Business Strategies Sustaining strong cash flow generation Leveraging own shipbuilding Sustainable cash flow and income facilities to build and manage generator vessels Shipping Business Strategies A ready fleet to better meet Capability to deliver multiple fleet shipowners’ demand sizes an

  23. Slide 23: Dividend Summary

    Dividend Summary Sustainable dividends to reward shareholders’ long-term loyalty Dividend and Dividend Pay-out Ratio 0.080 40% 36% 35% 0.070 35% 0.060 29% 30% 27% 25% 0.050 25% 0.040 20% 0.030 15% 0.050 0.050 0.050 0.045 0.045 0.020 10% 0.010 5% 0.000 0% FY2018 FY2019 FY2020 FY2021 FY2022 Dividend (

  24. Slide 24: FY2023 Operational Guidance

    FY2023 Operational Guidance Remains cautiously optimistic about the eco-friendly vessel demand; increases order-win target to US$3 billion Order-win Target FY2023: US$3 billion | YTD Order-win: 0.67 billion  Tightened environmental regulatory by International Maritime Organisation (“IMO”) will cont

  25. Slide 25: Yangzijiang's ESG Commitment

    Yangzijiang’s ESG Commitment Newly established ESG committee to drive implementation of a systematic framework; getting in tune with the world’s climate ambitions Formation of ESG Committee The Group’s ESG Commitment  To contribute to the world’s climate ambitions  China: To reach net-zero emissio

  26. Slide 26: Strategic ESG Initiatives

    Strategic ESG Initiatives Two-pronged strategies towards our ESG goals ESG Initiatives: Two-carbon Strategy Green Factory Strategy Green Vessel Strategy 1. Utilisation of renewables 1. Developments in clean energy vessels  Set up Photovoltaic Power Generation on the  Secured 31 units of LNG dual-f

  27. Slide 27: Thank You

    For more information, please contact: Thank You Financial PR Pte Ltd Investor Relations: Kamal Samuel / Vicki Zhou kamal@financialpr.com.sg zhouyan@financialpr.com.sg Tel: (65) 6438 2990; Fax: (65) 6438 0064

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