Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — FY2008 Earnings Presentation
39 slides from Sembcorp Industries's earnings presentation, Feb 26, 2009
Slide 1: FY2008 Results Announcement
FY2008 Results Announcement February 26, 2009
Slide 2: Scope of Presentation
Scope of Presentation – CEO’s Report – Financial Review – Operations Review – Group Outlook Sembcorp Industries 2009 2
Slide 3: CEO's Report
CEO’s Report Tang Kin Fei Group President & CEO
Slide 4: FY2008 Performance Round-up
FY2008 Performance Round-up Turnover of $9.9 billion, up 15% PBT of $906 million, up 11% PATMI of $507 million, up 6% from FY2007 excl. one-off tax write back of $48 million ROE at 18% EVA at $511 million, up 22% Strong balance sheet and cash flow – Net cash – Operating cash flow of $1.0 billion Pro
Slide 5: Positioning for the Future
Positioning for the Future A challenging global environment – Global recession, financial crisis and credit squeeze Focused on managing existing businesses well – Cost management – Operational excellence – Healthy balance sheet and strong operating cash flow Capitalising on opportunities – Selective
Slide 6: Financial Review
Financial Review Lim Joke Mui Group CFO
Slide 7: Group Profit & Loss
Group Profit & Loss ($M) FY08 FY07 ∆% Turnover 9,928 8,619 15 EBITDA 983 850 16 EBIT 788 667 18 PBT 906 813 11 PATMI before EI 534 557 (4) EI (27) (31) 13 PATMI 507 526 (4) EPS (cents) 28.5 29.6 (4) Sembcorp Industries 2009 7
Slide 8: Group Turnover
Group Turnover ($M) FY08 FY07 ∆% Utilities 4,478 3,736 20 Marine 5,061 4,512 12 Environment 214 205 4 Industrial Parks 16 23 (30) Other Businesses 159 143 12 TOTAL 9,928 8,619 15 Sembcorp Industries 2009 8
Slide 9: Group PATMI
Group PATMI ($M) FY08 FY07 ∆% Utilities 200.3 230.2 (13) Marine 290.6 220.1 32 Environment 2.1 13.6 (84) Industrial Parks 31.5 34.0 (7) Other Businesses 12.2 25.7 (53) Corporate (2.7) 33.6 NM PATMI before EI 534.0 557.2 (4) EI (26.9) (31.0) 13 PATMI 507.1 526.2 (4) Sembcorp Industries 2009 9
Slide 10: Utilities Turnover & PATMI
Utilities Turnover & PATMI ($M) FY08 FY07 ∆% TURNOVER Singapore 3,856.3 2,879.4 34 UK 599.2 829.9 (28) Other countries 60.9 56.3 8 Total Turnover 4,516.4 3,765.6 20 PATMI Singapore 130.8 111.5 17 UK 67.6 106.8 (37) Other countries 16.8 25.1 (33) Corporate & Others (14.9) (13.2) (13) Total PATMI 200.
Slide 11: Group Capex
Group Capex ($M) FY08 Fixed Asset Items 361.7 – Utilities 250.0 – Marine 99.8 – Environment 6.8 – Other Businesses 5.1 Equity Investments 19.1 – Utilities 17.6 – Marine 0.3 – Industrial Parks 1.2 TOTAL 380.8 Sembcorp Industries 2009 11
Slide 12: Group Cash Flow
Group Cash Flow ($M) FY08 FY07 CASH FLOW FROM OPERATING ACTIVITIES - before changes in working capital 1,030 849 - changes in working capital 1,320 74 - net payments to banks for unauthorised transactions (44) (261) - tax paid (45) (48) 2,261 614 CASH FLOW FROM INVESTING ACTIVITIES - divestment proc
Slide 13: Group Borrowings
Group Borrowings ($M) Dec 31,08 Dec 31,07 PF loans 362 511 Long-term 236 398 Short-term 219 432 Gross 817 1,341 Less: Cash and FD (2,401) (1,297) Net Debt / (Cash) (1,584) 44 Net Gearing Ratio Net Cash 0.01 Exclude PF* Net Debt / (Cash) (1,825) (306) Net Gearing Ratio Net Cash Net Cash * PF – Non-re
Slide 14: Strong Financial Stability
Strong Financial Stability ($M) Total Gross Debt Total Cash Net Debt Sembcorp Industries excl. Marine 591 347 244 Marine in a net cash Sembcorp Marine 226 2,054 (1,828) position of $1.8 bn 3000 Total Cash Utilities and Others 2,401 with a net debt of 2000 only $244 m Total Gross Debt 2,054 $M 1000 8
Slide 15: Strong Financial Stability
Strong Financial Stability ($M) Total Gross Debt 817 Total gross debt is Total Tangible Assets 2,477 only 33% of total Total Shareholders’ Funds 2,594 tangible assets and 31% of total 3,000 shareholders’ funds 2,500 2,000 $M 1,500 2,477 2,594 1,000 500 817 0 Sembcorp Industries Group As of December
Slide 16: Group Debt Maturity Profile
Group Debt Maturity Profile ($M) <1yr 1yr-3yrs 3yrs-5yrs >5yrs Debt excl. Project Finance 219 230 4 2 Repayment of non-recourse Non-recourse Project Finance 68 103 104 87 PF loans funded by project cash flows 400 Only $219 m of corporate 333 debt to be repaid within one 300 287 103 year 68 $M 200 23
Slide 17: Financial Indicators
Financial Indicators FY08 FY07 Before EI EPS (cents) 30.0 31.3 ROE (%) 18.9 19.0 ROTA (%) 9.5 9.6 Interest Cover (times) 22 16 After EI EPS (cents) 28.5 29.6 ROE (%) 18.0 18.0 ROTA (%) 9.0 8.7 Interest Cover (times) 21 15 Per Share NAV ($) 1.46 1.70 NTA ($) 1.39 1.64 Economic Value Added EVA ($M) 51
Slide 18: Operations Review
Operations Review Tang Kin Fei Group President & CEO
Slide 19: Utilities
Utilities 19 Sembcorp’s wastewater treatment plant in Nanjing Chemical Industrial Park, China
Slide 20: Utilities: Key Developments, Singapore
Utilities Key Developments Singapore – Continued to grow capabilities in energy and water with a disciplined approach – Secured DBOO contract for Singapore’s newest and largest NEWater plant, the largest reclaimed water plant in Asia – Concluded second GSA to import an additional 90 BBtu/day of natu
Slide 21: Utilities: Key Developments, UK
Utilities Key Developments UK – Achieving results in our renewable energy thrust – Full year of operations for Sembcorp Biomass Power Station – Enhanced onsite capacity – Additional 120 tph steam capacity online – Commissioning second GT with 42 MW/162 tph capacity in 1H2009 – Secured new and renewe
Slide 22: Utilities: Key Developments, China
Utilities Key Developments China – Operations in Shanghai, Nanjing and Zhangjiagang are profitable Shenyang Sembcorp Water Co. – Expansions in existing beachheads – Two additional 130 tph coal fired boilers completed in Shanghai – 30,000 m3/day high salinity wastewater treatment facility completed i
Slide 23: Utilities: Key Developments, Other Markets
Utilities Key Developments Other Markets – In Vietnam, Phu My 3 power plant performed well operationally. Completes 5 years of successful operations – In the UAE, the Fujairah 1 IWPP continued to perform according to plan. Mechanical completion for additional 225 MW was completed. Performance test i
Slide 24: Marine
Marine Sembcorp Industries 2008 24 Sembcorp Marine’s Jurong Shipyard in Singapore
Slide 25: Marine: Key Developments
Marine Key Developments – Net orderbook at $9.0 bn as at end 2008 with completions and deliveries until 2012 – Contracts secured in 2008 worth a record $5.7 bn – All deliveries on schedule or ahead of schedule – Strategic alliance partnership with Rio de Janeiro-based MacLaren shipyard to operate a
Slide 26: Environment
Environment Sembcorp Industries 2008 26 SembSITA Pacific’s advanced waste treatment plant in New South Wales, Australia
Slide 27: Environment: Key Developments
Environment Key Developments – Australia joint venture continues to perform well – Continued focus on waste-to- resource to enhance the competitiveness of businesses across the Group Sembcorp Industries 2009 27
Slide 28: Industrial Parks
Industrial Parks Sembcorp Industries 2008 28 VSIP Hai Phong integrated township and industrial park
Slide 29: Industrial Parks: Key Developments
Industrial Parks Key Developments – Progress in development of integrated township and industrial park concept VSIP Bac Vietnam: Ninh VSIP 700ha Hai Phong – Positioned as a major land bank owner and 1,600ha developer with 4,145 ha in Vietnam – Investment certificates received for VSIP II expansion a
Slide 30: Group Outlook
Group Outlook Tang Kin Fei Group President & CEO
Slide 31: Group Outlook
Group Outlook The global economic and financial environment is expected to remain very challenging for the rest of the year. Contribution of our overseas companies may be affected by currency movements when their profits are translated into Singapore dollars. With a focus on cost management, product
Slide 32: Vital Partners. Essential Solutions.
Vital Partners. Essential Solutions. Sembcorp Industries 2009 32
Slide 33: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward-looking statements are based on current expectations, projections and assumptions about future events. Although Sembcorp Industries believes that these
Slide 34: Appendix
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Slide 35: Group Profit & Loss
Group Profit & Loss ($M) 4Q08 4Q07 ∆% Turnover 2,694 2,527 7 EBITDA 278 242 15 EBIT 231 193 19 PBT 221 234 (6) PATMI before EI 128 183 (30) EI (27) (31) 13 PATMI 101 152 (34) EPS (cents) 5.7 8.5 (33) Sembcorp Industries 2009 35
Slide 36: Group Turnover
Group Turnover ($M) 4Q08 4Q07 ∆% Utilities 985 1,105 (11) Marine 1,617 1,336 21 Environment 52 54 (5) Industrial Parks 3 4 (19) Other Businesses 37 28 34 TOTAL 2,694 2,527 7 Sembcorp Industries 2009 36
Slide 37: Group PATMI
Group PATMI ($M) 4Q08 4Q07 ∆% Utilities 29.9 50.8 (41) Marine 70.1 70.6 (1) Environment 2.2 6.4 (66) Industrial Parks 10.4 6.5 60 Other Businesses 8.7 7.2 21 Corporate 6.4 41.3 (85) PATMI before EI 127.7 182.8 (30) EI (26.9) (31.0) 13 PATMI 100.8 151.8 (34) Sembcorp Industries 2009 37
Slide 38: Utilities Turnover & PATMI
Utilities Turnover & PATMI ($M) 4Q08 4Q07 ∆% TURNOVER Singapore 879.1 882.9 NM UK 100.9 217.1 (54) Other countries 14.7 13.6 8 Total Turnover 994.7 1,113.6 (11) PATMI Singapore 12.2 25.6 (52) UK 14.7 18.2 (19) Other countries 6.2 9.3 (33) Corporate & Others (3.2) (2.3) (39) Total PATMI 29.9 50.8 (41
Slide 39: Foreign Exchange Movement
Foreign Exchange Movement Exchange Rate1 Currency appreciation / (depreciation) against S$ 2008 2007 Currency S$1.00 YoY GBP 2.5980 3.006 (13.57%) USD 1.4138 1.508 (6.25%) AUD 1.1952 1.2635 (5.41%) RMB 0.2036 0.1994 2.11% 1 Average exchange rates used for translation of underlying net profit Sembc