Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — FY2024 Earnings Presentation
36 slides from Sembcorp Industries's earnings presentation, Feb 27, 2025
Slide 1: FY2024 Results Announcement
FY2024 Results Announcement February 27, 2025
Slide 2: GCEO’s Report
GCEO’s Report Wong Kim Yin Group CEO © Sembcorp Industries
Slide 3: FY2024 Group Financials
FY2024 Group Financials Continuing Operations FY24 vs FY23 Turnover S$6,417 million 9% EBITDA1 Earnings Per Share before EI S$1,734 million 3% 57.2 cents (EPS: 57.2 cents) Adjusted EBITDA2 Group ROE before EI S$2,051 million * 20.5% (ROE: 20.5%) Net Profit before Exceptional Items (EI) S$1,019 m
Slide 4: Strong Earnings Predictability, Increasing Dividend Payout Ratio
Strong Earnings Predictability, Increasing Dividend Payout Ratio Proposing final dividend of 17.0 cents, bringing total FY24 dividend to 23.0 cents per share Rewarding shareholders with higher dividend and increased payout ratio Visibility and strength of performance underpinned by key business
Slide 5: Gas and Related Services: Enhancing Earnings Resiliency
GAS AND RELATED SERVICES Enhancing Earnings Resiliency Singapore Gas-Fired Power Plants Contracting Profile1 Long-term contracts provide earnings stability • Singapore’s gas-fired power generation contracted, 1% resilient earnings despite 34% decline in wholesale 19% >10 years electricity prices By
Slide 6: Renewables: Executing towards 25GW Target
RENEWABLES Executing towards 25GW Target, Diversification of Growth Gross Renewables Capacity* (GW/GWh) 25 Achieved 4.1GW capacity growth since end-2023 • Secured over 2GW of greenfield bids including Sembcorp’s first hybrid BESS + Solar project in India 17.01 12.9 3.9 Penetrating new markets: • Mid
Slide 7: Renewables Execution Track Record
RENEWABLES Execution Track Record • Growth through multiple strategic deals and greenfield tenders 0.3 17.0 • Diversified market strategy 0.5 0.2 0.4 0.3 0.2 0.8 0.1 Gross Renewables Capacity* 0.4 (GW/GWh) 0.6 0.2 0.3 0.2 0.2 0.1 0.2 0.2 0.7 0.3 0.7 0.5 0.9 0.1 0.6 0.2 0.8 0.2 0.4 0.3 1.9 0.1 0.7 3.
Slide 8: Integrated Urban Solutions: Delivering on Refreshed Strategy
INTEGRATED URBAN SOLUTIONS Delivering on Refreshed Strategy, Focused on Growth Net Profit Before EI (S$m) Earnings growth with strong turnaround 180 169 • Higher land sales achieved in Vietnam and Indonesia 160 155 • Increased land bank with three new investment licenses in 148 Vietnam 140 • Expande
Slide 9: Financial Review
Financial Review Eugene Cheng Group CFO © Sembcorp Industries
Slide 10: Key Financials
Key Financials S$ million FY24 FY23 Δ% Highlights Turnover 6,417 7,042 (9) • Turnover declined mainly due to the EBITDA1 1,734 1,789 (3) Gas and Related Services segment Share of Results: Associates & JVs, Net of Tax 317 264 20 in Singapore and the UK Adjusted EBITDA2 2,051 2,053 * • Stable net prof
Slide 11: Group Turnover
Group Turnover S$ million FY24 FY23 Δ% Highlights Gas and Related Services 4,637 5,457 (15) • Decline in turnover for Gas and Renewables 746 703 6 Related Services due to planned major maintenance, lower gas Integrated Urban Solutions 431 418 3 offtake and gas prices in Singapore, Decarbonisation So
Slide 12: Group Net Profit
Group Net Profit S$ million FY24 FY23 Δ% Highlights Gas and Related Services 727 809 (10) • Lower profit in Gas and Related Renewables 183 200 (9) Services segment due to planned major maintenance, lower pool prices Integrated Urban Solutions 169 121 40 in Singapore as well as cessation of Decarboni
Slide 13: Net Profit FY24 vs FY23 Bridge
Group Net Profit FY24 vs FY23 ◼ ◼ Positive / Increase Negative / Decrease • Lower Gas and Related Services net profit largely due to planned major maintenance in 1H24, lower 1,020 1,018 16 36 1,019 1 1,020 (2) 48 7 pool gains in Singapore as well as absence of (7) Group Net Profit (S$ million) contr
Slide 14: Group ROE
Group ROE S$ million FY24 FY23 Highlights ROE before Exceptional Items (%) • Lower Group ROE due to lower Gas and Related Services 32.2 40.7 earnings in the Gas and Related Services and Renewables segments Renewables 8.0 11.0 • Improvement in Integrated Urban Integrated Urban Solutions 8.5 6.7 Solut
Slide 15: Renewables
Renewables Renewables Portfolio Returns $400 14.00% 11.7% $350 10.8% 12.00% $300 10.2% 11.0% 8.0% 10.00% 3.7GW of renewables capacity installed during the year $250 200 8.00% $200 183 • Higher curtailment in China and lower wind resource in 140 6.00% $150 4.2% 4.6% 4.00% India partially offset by co
Slide 16: China Renewables
China Renewables Sembcorp’s China Portfolio Curtailment Rate Business Update 9.3% • Curtailment remained high in 4Q24 due to accelerated 9.0% 8.2% 7.9% renewable deployment 5.3% 4.3% • Gross portfolio of 8.5GW, including 167MW under 3.5% 1.8% construction (total attributable: 4.0GW) • China renewabl
Slide 17: China Renewables Pricing Reform
China Renewables Pricing Reform Tariff Structure Project COD before Jun 1, 2025 Project COD after Jun 1, 2025 • No change to volume mixture between Feed-in-Tariff (FiT) • 100% of wind and solar generation to be traded into the Volume and market-based pricing power market from project COD • Market-ba
Slide 18: India Renewables
India Renewables India Gross Renewables Portfolio Increasingly Diversified (GW/GWh) 115% 100% Business updates 2.1 2.3 2.5 3.5 5.8 95% 5% 80% • 2H24 performance impacted by lower year-on-year 75% 80% 80% 78% 58% 47% 60% wind speed 55% 35% 40% • Rebalanced portfolio to mitigate resource risks, 48% 15
Slide 19: Diversified Renewables Portfolio
Diversified Renewables Portfolio Total Gross Renewables Capacity* UK 17.0 GW China Addressable Renewables Growth1 (2024-2028) >1,650 GW Oman Vietnam Projected Installed Renewables Capacity1 (GW/GWh) India >3,200 Philippines +20% Singapore >1,550 Legend Indonesia Energy Wind Solar Hydro storage syste
Slide 20: Capital Expenditure and Equity Investment
Group Capital Expenditure and Equity Investment S$ million FY24 FY23 Highlights Capital Expenditure 1,491 856 • Increase in capex in Renewables Gas and Related Services 384 213 segment mainly due to project wins Renewables 1,072 595 in India during the year as well as completion of first greenfield
Slide 21: Free Cash Flow
Group Free Cash Flow S$ million FY24 FY23 Highlights Cash Flow From Operating Activities 1,412 1,481 • Net cash used in investing activities - Before Changes in Working Capital 1,578 1,687 relates mainly to the purchase of fixed assets for the renewables - Changes in Working Capital 34 (16) business
Slide 22: Borrowings
Group Borrowings S$ million Dec 31, 2024 Dec 31, 2023 Highlights Gross Debt 8,671 7,254 Total Equity 5,659 4,872 • Gross debt increased mainly due to: Total Capital 14,330 12,126 i. borrowings incurred for renewables acquisitions ii. consolidation of debt of newly Corporate Debt 6,664 5,939 acquired
Slide 23: Debt Profile
Group Debt Profile Debt Maturity Profile as at Dec 31, 2024 S$ million 3,927 Green and Sustainability- 1,891 Linked Borrowings Other Corporate Borrowings 1,323 1,120 1,076 1,014 Project Finance Loans 671 616 417 455 446 64 624 406 397 365 80 443 960 201 162 171 231 282 Within 1 year 1 - 2 years 2 -
Slide 24: Liquidity
Group Liquidity S$ million Dec 31, 2024 Dec 31, 2023 Highlights Cash and Cash Equivalents 871 767 • Maintain healthy level of liquidity with S$8.1 billion of unutilised borrowing Borrowing Facilities facilities Committed Facilities 11,136 9,662 • Extended debt maturity to 5.1 years through the issua
Slide 25: Outlook
Outlook The Group performed well in 2024. Contribution from the Gas and Related Services segment was lower mainly due to the planned major maintenance in Singapore. For the Renewables segment, earnings were lower mainly due to curtailment in China and lower wind resource in India. The Integrated Urb
Slide 26: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward-looking statements are based on current expectations, estimates, projections and assumptions about future events. Although Sembcorp Industries believes
Slide 27: Appendix
Appendix © Sembcorp Industries
Slide 28: EBITDA and Adjusted EBITDA
Group EBITDA and Adjusted EBITDA S$ million FY24 FY23 Δ% Highlights Gas and Related Services 908 1,088 (17) • Total Adjusted EBITDA decreased due Renewables 564 513 10 lower earnings from Gas and Related Services segment, mitigated by better Integrated Urban Solutions 141 120 18 performance in the I
Slide 29: Key Financials 2H24
Key Financials S$ million 2H24 2H23 Δ% Turnover 3,209 3,384 (5) EBITDA1 845 796 6 Share of Results: Associates & JVs, Net of Tax 164 118 39 Adjusted EBITDA2 1,009 914 10 Net Profit before Exceptional Items (EI) 487 416 17 Exceptional Items (7) (4) (75) Net Profit – Continuing Operations 480 412 17 D
Slide 30: Group Turnover 2H24
Group Turnover S$ million 2H24 2H23 Δ% Gas and Related Services 2,299 2,599 (12) Renewables 375 329 14 Integrated Urban Solutions 222 212 5 Decarbonisation Solutions 31 11 182 Other Businesses 282 233 21 TOTAL TURNOVER 3,209 3,384 (5) © Sembcorp Industries 2021 30 © Sembcorp Industries
Slide 31: EBITDA and Adjusted EBITDA 2H24
Group EBITDA and Adjusted EBITDA S$ million 2H24 2H23 Δ% Gas and Related Services 480 507 (5) Renewables 286 250 14 Integrated Urban Solutions 79 65 22 Decarbonisation Solutions (12) (11) (9) Other Businesses and Corporate 12 (15) NM TOTAL EBITDA1 845 796 6 Gas and Related Services 551 545 1 Renewab
Slide 32: Group Net Profit 2H24
Group Net Profit S$ million 2H24 2H23 Δ% Gas and Related Services 388 374 4 Renewables 79 81 (2) Integrated Urban Solutions 99 72 38 Decarbonisation Solutions (10) (10) - Other Businesses 19 16 19 Corporate (129) (128) (1) - Interest cost (83) (90) 8 - Others (46) (38) (21) DPN Income 41 11 273 - In
Slide 33: Group Borrowings
Group Borrowings (S$ million) Amount Drawn Fixed / Floating Rate* Year of Maturity Corporate Debt 6,664 Medium Term Notes (issued 2010) 100 4.250% 2025 Medium Term Notes (issued 2014) 150 3.593% 2026 Medium Term Notes (Sustainability-linked bond issued 2022) 300 3.735% 2029 Medium Term Notes (Green
Slide 34: Renewables Capacity
Group Renewables Capacity Gross capacity, MW / MWh Attributable capacity, MW/ MWh As at Dec 31, 2024 Installed Under Construction Installed Under Construction Solar 5,574 2,325 3,424 2,314 - Singapore 484 245 484 245 - Vietnam 266 4 174 2 - Indonesia 54 11 27 11 - China 3,515 18 1,626 9 - India 755
Slide 35: Renewables Capacity Under Construction
Group Renewables Capacity Under Construction Gross renewables capacity (MW/ MWh)* Gross renewables capacity (MW/ MWh)* Expected completion schedule by country, as at Dec 31, 2024 Expected completion schedule by technology, as at Dec 31, 2024 2,160 2,160 100 300 450 1,292 1,292 300 341 2,060 183 15 3
Slide 36: Thank you
Thank you © Sembcorp Industries