Seatrium Limited · SGX:5E2
Seatrium — Investor Day (March 2024)
12 slides from Seatrium's investor day presentation, Mar 15, 2024
Slide 1: Financial and Capital Management
FINANCIAL AND CAPITAL MANAGEMENT ADRIAN TENG Chief Financial Officer
Slide 2: Investor Day 2024: Towards Profitable and Resilient Growth
INVESTOR DAY 2024 Towards Profitable and Resilient Growth 15 March 2024
Slide 3: Financial Roadmap to 2028
FINANCIAL ROADMAP TO 2028 PATH TO PROFITABILITY FINANCIAL RESILIENCY CAPITAL ALLOCATION • Higher revenue and profits • Capital structure optimisation • Capability building and • Synergies and cost • Sustainable and diversified future-proofing optimisation financing • Returns to shareholders 32
Slide 4: Building a More Resilient Portfolio with Strong Revenue Growth
BUILDING A MORE RESILIENT PORTFOLIO WITH STRONG REVENUE GROWTH REVENUE EVOLUTION (S$b) Oil & Gas R&U Renewables CCS & New Energies 10-12 c.9-12 7.3 Mostly rig-building c.3-6 and repairs 2011-2013 2018-2020 2023 2028 Strong revenue growth: Build a more resilient and diversified portfolio: ▪ Sharpen f
Slide 5: Our Path to Achieving ≥ S$1.0b EBITDA and ≥ 8% ROE
OUR PATH TO ACHIEVING ≥ S$1.0b EBITDA AND ≥ 8% ROE IMPROVED PROFITABILITY… … ENABLES US TO DRIVE HIGHER RETURNS EBITDA (S$b) Return on Equity (%) ≥ 8% ≥ 1.0 negative > 4x 2023 2028 0.2 … AND MAINTAIN A HEALTHY LEVERAGE Net Debt/EBITDA (x) 2023 2028 ▪ Delivery of legacy projects 3.2x c.2.0-3.0x ▪ Mar
Slide 6: Identified Synergies & Savings, On Track to Realise More
IDENTIFIED SYNERGIES & SAVINGS, ON TRACK TO REALISE MORE S$300m ▪ Recurring synergies and cost savings: Annualised synergies & o Standardised pricing with customers cost savings o Reduction in corporate overheads o Asset rationalisation S$200m ▪ More efficient centralised procurement leading to impr
Slide 7: Recalibrated Debt and Improved Liquidity
RECALIBRATED DEBT AND IMPROVED LIQUIDITY PRE-REFINANCING DEBT MATURITY PROFILE POST-REFINANCING DEBT MATURITY PROFILE AT JUN 2023 AT DEC 2023 S$b S$b Undrawn facilities: c. S$0.4b Undrawn facilities: c. S$2b 1.5 1.1 0.9 0.9 0.9 0.7 0.5 0.5 0.6 0.4 0.4 0.6 0.2 0.1 0.3 0.3 0.3 2023 2024 2025 2026 2027
Slide 8: Building a Stronger Balance Sheet and Optimal Capital Structure
BUILDING A STRONGER BALANCE SHEET AND OPTIMAL CAPITAL STRUCTURE 2023 2028 ✓ Refinanced and secured bank • Diversify funding sources and loans; onboarded new lenders access capital markets ✓ Recalibrated debt maturity • Target 50% of total funding to be profile and enhanced liquidity green and/or sus
Slide 9: Green & Sustainability-Linked Financing
GREEN & SUSTAINABILITY-LINKED FINANCING Our greener orderbook enables sustainability-linked financing to support project execution and ESG targets 35% Total debt c. S$3b as of Dec-23 Target 50% of borrowings to be sustainability-linked / Sustainability-linked / green green to anchor our ESG commitme
Slide 10: Capital Allocation and Funding Sources
CAPITAL ALLOCATION AND FUNDING SOURCES CAPITAL ALLOCATION FUNDING SOURCES ▪ Invest to strengthen capabilities in ▪ Diversify lender base and access yards, AI and digitalisation for capital markets for funding and growth and greater productivity working capital needs ▪ Pursue targeted acquisitions to
Slide 11: Key Takeaways
KEY TAKEAWAYS WE HAVE CLEAR FINANCIAL WE HAVE A STRONGER WE WILL CONTINUE TO TARGETS AND PATH TO BALANCE SHEET WITH HEALTHY PROGRESS TOWARDS PROFITABILITY, THROUGH A DEBT MATURITY PROFILE AND OUR VISION, ENHANCE OUR COMBINATION OF TOPLINE IMPROVED LIQUIDITY, INVESTMENT PROFILE AND GROWTH AND COST SU
Slide 12: Disclaimer
DISCLAIMER The material in this Presentation has been prepared by Seatrium Limited and contains general background information about the Company’s activities as at the date of this Presentation. No representation, warranty, or undertaking, express or implied, is made as to, and no reliance should be