Boustead Singapore Limited · SGX:F9D
Boustead Singapore — Shareholder Meeting (July 2024)
65 slides from Boustead Singapore's shareholder meeting presentation, Jul 26, 2024
Slide 1: Annual General Meeting
Boustead Singapore Limited ANNUAL GENERAL MEETING 26 July 2024
Slide 2: FY2024 Annual General Meeting Management Presentation
Boustead Singapore Limited FY2024 Annual General Meeting Management Presentation 26 July 2024
Slide 3: Business Performance
Business Performance BOUSTEAD.
Slide 4: Boustead Singapore Limited at a Glance
Boustead Singapore Limited at a Glance FY2024 Operating Profit Real Estate Weaker order intake for FY2024 in Solutions S$17.5 million addition to expenses to stabilise 28 & 30 Bideford Road Near breakeven, division operating Healthcare loss was 75% lower for FY2024 (S$0.2 million) reflecting that re
Slide 5: Boustead Singapore Limited at a Glance
Boustead Singapore Limited at a Glance FY2024 Operating Profit Real Estate Weaker order intake for FY2024 in Solutions S$17.5 million addition to expenses to stabilise 28 & 30 Bideford Road Near breakeven, division operating Healthcare loss was 75% lower for FY2024 (S$0.2 million) reflecting that re
Slide 6: Champions within Energy Engineering & Geospatial Divisions
Champions within Energy Engineering & Geospatial Divisions ENERGY ENGINEERING GEOSPATIAL • Stuart Cummings • Prasun Chakraborty • Brett Bundock • Leslie Wong Chief Executive Officer Managing Director Managing Director Managing Director Boustead International Heaters Controls & Electrics Boustead Geo
Slide 7: Division Performance – Energy Engineering
Division Performance – Energy Engineering
Slide 8: Energy Engineering: Product Offerings & Services
Energy Engineering Product Offerings & Services Hydraulic / pneumatic process control systems Wellhead Control Panels / Hydraulic Power Units Chemical Injection Skids Heat transfer products Furnaces Waste Heat Recovery Units Once Through Steam Generators Reformers and Crackers 8
Slide 9: Energy Engineering: Division Revenue, Operating Profit & Orders Secured
Energy Engineering Division Revenue, Operating Profit & Orders Secured FY2024 FY2023 Chg (S$’m) (S$’m) (%) Revenue 174.4 98.0 +78 Operating profit* 31.2 8.9 +251 Orders secured 78 **182 -49 * Operating profit is defined as profit before interest and income tax including share of results of associate
Slide 10: Energy Engineering: Prospects & Challenges
Energy Engineering Prospects & Challenges ▪ Near to mid-term ▪ Weaker order intake in FY2024 means weaker financial results for FY2025 ▪ Credibility for reformers has improved but client’s markets still weak; not much concrete opportunities in pipeline ▪ Won first ethylene cracker project post FY202
Slide 11: No Agreement on Energy Transition from Fossil Fuels
Energy Engineering No Agreement on Energy Transition from Fossil Fuels “… there should be no new “The outlook for natural “Fossil fuel use will not investments in oil & gas gas is more resilient disappear any time soon. Our production fields, coal than for oil … when scenario envisages fossil mines
Slide 12: Oil Majors & Other Corporations Pushing Back on Net-Zero Targets
Energy Engineering Oil Majors & Other Corporations Pushing Back on Net-Zero Emissions Targets ESG poster child Unilever waters down green BP adjusted its plan to reduce oil & gas pledges …4 output by 25% by 2023 compared to its previous goal of a 40% decline1 Shell prepares to defy climate experts b
Slide 13: Addressing Uncertain Long-Term Prospects
Energy Engineering Addressing Uncertain Long-Term Prospects ▪ Stay nimble and scale business quickly according to demand for oil & gas projects ▪ Spend more time on chasing projects which are somewhat more resilient to transition to net-zero emissions such as natural gas projects / LNG projects / pe
Slide 14: Addressing Uncertain Long-Term Prospects
Energy Engineering Addressing Uncertain Long-Term Prospects ▪ Stay nimble and scale business quickly according to demand for oil & gas projects ▪ Spend more time on chasing projects which are somewhat more resilient to transition to net-zero emissions such as Maintain bid natural gas projects / LNG
Slide 15: Division Performance – Geospatial
Division Performance – Geospatial
Slide 16: Geospatial: Product & Service Offerings
Geospatial Product & Service Offerings ArcGIS Desktop and Extensions Professional Services ArcGIS Online and Extensions ArcGIS SmarterWX Enterprise Data Managed Server and Products Other ArcGIS Services Extensions Apps Esri Aligned Esri Direct
Slide 17: Geospatial: Esri Direct & Esri Aligned
Geospatial Esri Direct & Esri Aligned Esri Direct Esri Aligned Revenue as result of Revenue as result of selling services, data selling Esri Inc’s products, 3rd party software products (including self- under distribution developed) solutions agreement that enhance and extend Esri ecosystem Leveragin
Slide 18: NParks and URA celebrated at Esri User Conference 2024
Geospatial NParks and URA celebrated at Esri User Conference 2024
Slide 19: Geospatial: Division Revenue, Operating Profit & Deferred Services Backlog
Geospatial Division Revenue, Operating Profit & Deferred Services Backlog FY2024 FY2023 Chg (S$’m) (S$’m) (%) Revenue 212.7 168.0 +27 Operating profit* 40.5 32.2 +26 Deferred services backlog 129 92 +40 * Operating profit is defined as profit before interest and income tax including share of results
Slide 20: Financial Performance Impacted by Unfavourable FX against USD
Geospatial Financial Performance over Years Impacted by Unfavourable FX Movement against USD AUD vs USD MYR vs USD -13% -13% 1 AUD = 0.758276 USD (Jun 25, 2021) 1 MYR = 0.240524 USD (Jun 25, 2021) 1 AUD = 0.668383 USD (Jun 26, 2024) 1 MYR = 0.212134 USD (Jun 26, 2024) IDR vs USD SGD vs USD -0.9% -13
Slide 21: Financial Performance Impacted by Unfavourable FX against SGD
Geospatial Financial Performance over Years Impacted by Unfavourable FX Movement against SGD -12.5% -13% 1 AUD = 1.01836 SGD (Jun 25, 2021) 1 MYR = 0.325092 SGD (Jun 24, 2021) 1 AUD = 0.905465 SGD (Jun 26, 2024 ) 1 MYR = 0.287695 SGD (Jun 26, 2024) -13.6% 1 IDR = 0.000093835 SGD (Jun 25, 2021) 1 IDR
Slide 22: Geospatial: Factors for Success
Geospatial Factors for Success Geospatial has evolved from niche … Specialised GIS professional skills …to mainstream Enterprise System People, People, Project management skills 33% 33% Systems and software development skills Cloud computing skills Data science skills Cyber security skills User expe
Slide 23: Geospatial: Prospects
Geospatial Prospects Smart Cities Digital Government IOT AI Digital Big Data Transformation Location Intelligence 23 Connected Enterprise Digital Twins
Slide 24: Noteworthy Projects & Achievements in FY2024
Noteworthy Projects & Achievements in FY2024
Slide 25: First Ethylene Cracker Project for BIH
Energy Engineering First Ethylene Cracker Project for BIH ▪ First ethylene cracker project for BIH ▪ Awarded directly by oil major to be installed in US ▪ Cracker to be built by BIH will have higher duty and output than existing crackers and will be largest single cracker in North America ▪ BIH won
Slide 26: First Ethylene Cracker Project for BIH
Energy Engineering First Ethylene Cracker Project for BIH High level of modularity ▪ BIH won this despite being highest priced among furnace vendors ▪ BIH invested significant structural engineering resources to design highly modular furnace which: ▪ Lowers site construction and installation costs f
Slide 27: Division Performance – Real Estate Solutions
Division Performance – Real Estate Solutions
Slide 28: BP Division Financial Performance Summary
BP Division Financial Performance Summary Amount (S$’m) ▪ Higher overall revenue due to higher contributions 426.2 from E&C Business arising from higher conversion 450.0 of order backlog, partially offset by lower 400.0 369.5 339.1 contributions from Real Estate Business 350.0 301.4 284.0 ▪ Higher p
Slide 29: Reunified as ONE
Reunified as ONE BP E&C • Design-and-build, EPC and EPCM specialist for high value-added industrial projects within region • ~ 3,000,000 sqm of construction track record • ~ 137 E&C Business personnel with presence in SG, MY, VN and CN BU Rationalisation BP Real Estate • Developer of business park a
Slide 30: Reunified as ONE
Reunified as ONE BP E&C • Completed all pre-pandemic backlog • Expanded bench strength in MY and VN • Investment in skills development, eco-sustainability and ConTech • Strong balance sheet and project cashflows BU Rationalisation BU Foundations BP Real Estate • Over S$2.0b in total AUM for managed
Slide 31: Reunified as ONE
Reunified as ONE BP E&C • Urgent replenishment of order backlog • Increased penetration of markets outside of SG • Strategic collaboration with E&C contemporaries BU BP Real Estate BU Foundations BU Strategies • Completion and stabilisation of remaining Rationalisation development pipeline • Strateg
Slide 32: Business Review: E&C
Business Review: E&C Amount (S$’m) E&C Business Performance ▪ Higher revenue due to higher order backlog of 400.0 391.9 projects carried forward at end of FY2023 350.0 358.4 324.5 269.8 ▪ Return to profitability due to significant completion 300.0 of pre-pandemic projects where margins were 250.0 26
Slide 33: Business Review: E&C (cont'd)
Business Review: E&C (cont’d) Value of E&C - Value of Contracts Secured Contracts ▪ After substantially clearing pre-pandemic (S$’m) backlog, BP E&C secured S$401m of contracts in 800 FY2023 - mainly consisting of one project for Fortune 500 corporation 600 ▪ In FY2024, increased E&C competition and
Slide 34: Business Review: Real Estate
Business Review: Real Estate Amount Real Estate Business Performance (S$’m) 150 ▪ Lower revenue mainly due to disposal of Boustead 137.1 Industrial Park in Vietnam in late FY2023 and impending redevelopment of vacant property, offset by higher development, acquisition and asset management fees 100 ▪
Slide 35: Business Review: Real Estate
Business Review: Real Estate Amount Real Estate Business Performance (S$’m) ▪ Higher NPI from jointly-owned properties recorded due to recognition of full-year 40 13.3 15 contribution from KTG & Boustead Industrial 11.1 38.9 Logistics (“KBIL”) Fund and 26 Tai Seng Street 10 34.1 30 ▪ Lower NPI from
Slide 36: Business Review: Real Estate (cont'd)
Business Review: Real Estate (cont’d) Different real estate platforms across asset classes as growth drivers Total AUM over S$2 billion SG Industrial VN Industrial Platforms SG Industrial Core SG Non-Industrial Development Development 576 805 589 197 AUM (S$’m) Market Singapore industrial Singapore
Slide 37: Looking Ahead
Looking Ahead ▪ Barring any unforeseen events in project execution, E&C Business expects healthy margin conversions for remaining backlog ▪ Increased focus to replenish E&C backlog; instead of direct replacement of last year’s record contract, it will be done gradually and with increased weightage o
Slide 38: Division Performance – Healthcare
Division Performance – Healthcare
Slide 39: Healthcare: Division Overview
Healthcare Division Overview Geographic Markets Key Initiatives • Technology and service streamlining • Further streamlining of technology and service offerings • Enhanced focus on functional Market Sector assessment capabilities • Focus on rehabilitative care and sports science • Community engageme
Slide 40: Healthcare: Division Revenue & Operating Profit
Healthcare Division Revenue & Operating Profit FY2024 FY2023 Chg (S$’m) (S$’m) (%) Revenue 10.6 11.1 -5 Operating loss* -0.2 -0.8 +75 * Operating loss is defined as loss before interest and income tax including share of results of associates and joint ventures but excluding currency exchange gains/l
Slide 41: Healthcare: De-Cluttering the Division
Healthcare De-Cluttering the Division • Medical technology distribution (SEA) Medical • Healthcare simulation/manikin distribution (SEA, CN) Technology distribution • Mobile hospital construction / fit-out business (Asia) • Rental and provision of continuous blood pressure monitoring devices to dial
Slide 42: Healthcare: Key Initiatives
Healthcare Key Initiatives BMEC Functional Assessment Centre • Launched at Changi General Hospital in July 2023 • Provides objective, scientific measurements of patient functionality BOOST Fall Prevention Programme • Aimed at improving senior physical strength and reducing fall risks • Implemented a
Slide 43: Healthcare: Key Initiatives
Healthcare Key Initiatives Beijing Pukang • Launched exercise prescription clinics under number of government health programmes • Continues to provide critical support in sports training for the Chinese Olympic Team including Paris Olympics 2024
Slide 44: Healthcare: Outlook
Healthcare Outlook Shifting from technology distribution to Addressing ageing populations solutioning • Community engagement and education • Integrated healthcare solutions • Continuing to promote fall prevention and • Transitioning from focus on distributing medical functional assessment awareness
Slide 45: Group Financial Performance
Group Financial Performance
Slide 46: Group Financial Results
Group Financial Results FY2024 FY2023 Chg (%) Revenue S$767.6m S$561.6m +37 • Record revenue from Geospatial and higher order Gross profit S$226.7m S$157.0m +44 backlogs carried forward for Gross margin 30% 28% Real Estate Solutions and Energy Engineering from Operating profit* S$81.7m S$54.5m +50 F
Slide 47: Group Revenue Mix by Division
Group Revenue Mix by Division FY2024 FY2023 47
Slide 48: Group Revenue
Group Revenue • Record revenue achieved 48
Slide 49: Group Adjusted Net Profit
Group Adjusted Net Profit • Highest adjusted net profit achieved in recent years 50
Slide 50: Group Net Cash Position
Group Net Cash Position • S$79m already paid to consolidate BPL shareholding, for purchases of shares during in FY2023 and FY2024 • Remaining S$74m deferred payment 51
Slide 51: FY2024 Group Cash Flow
FY2024 Group Cash Flow Cash used in investing activities, mainly: • S$76.2m capital contributions to JVs • S$33.8m additions to investment properties; • Net of S$68.4m proceeds from disposals of subsidiaries and JV, and dividends and interest from associates and JVs Cash used in financing activities
Slide 52: Group Return on Shareholders' Equity
Group Return on Shareholders’ Equity • Higher ROE due to increase in net profit • Spike in FY2021 due to value-unlocking gain from Boustead Industrial Fund 53
Slide 53: Group EPS
Group EPS • Higher EPS due to higher net profit 54
Slide 54: Group NAV per Share
Group NAV per Share • Higher NAV due to increased profits and greater consolidation of BPL shareholding following offers 55
Slide 55: Group Engineering Orders Secured
Group Engineering Orders Secured • Real Estate Solutions - S$81m • Energy Engineering – S$78m • Total orders secured lowest in recent years • Shortly after end of FY2024, BIH secured significant contract 56
Slide 56: Group Dividend
Group Dividend FY2024 FY2023 Interim dividend 1.5cts 1.5cts Total dividend for FY2024 of 5.5cts per share Final dividend *4.0cts 2.5cts represents dividend yield of about >5% Total dividend 5.5cts 4.0cts * Proposed tax-exempt (one-tier) cash/scrip dividend 57
Slide 57: Group Dividend (cont'd)
Group Dividend (cont’d) • Dividend of 5.5cts per share represents record ordinary dividend per share • FY2021 special dividend at 4cts per share due to value- unlocking gain from Boustead Industrial Fund 58
Slide 58: Historical Performance
Historical Performance BOUSTEAD.
Slide 59: Revenue by Division (FY1997-FY2024)
Revenue by Division (FY1997-FY2024) From takeover date by current management team 60
Slide 60: Revenue by Geographic Market (FY2006-FY2024)
Revenue by Geographic Market (FY2006-FY2024) From FY2006 onwards 61
Slide 61: Net Profit by Division (FY1997-FY2024)
Net Profit by Division (FY1997-FY2024) From takeover date by current management team 62
Slide 62: Earnings per Share and Dividends per Share (FY2003-FY2024)
Earnings per Share and Dividends per Share (FY2003-FY2024) From year of dividend recommencement 63
Slide 63: Total Shareholder Return
Total Shareholder Return From takeover date by current management team +805.6% Total shareholder return 64
Slide 64: Thank you
Thank you For investor relations enquiries, please contact: ir.team@boustead.sg 65
Slide 65: References
References 1. "Oil and gas companies stall on net zero plans" The Financial Times Ltd, 30 November 2023, https:// www.ft.com/content/c85f7dd8-cdc0-44a6- 807f-e9cba70a14f5. 2. "Shell waters down emissions cut pledge despite crucial climate decade" Guardian News & Media Limited, 14 March 2023, https:/