Boustead Singapore Limited · SGX:F9D
Boustead Singapore — FY2016 Earnings Presentation
40 slides from Boustead Singapore's earnings presentation, May 24, 2016
Slide 1: Joint FY2016 Financial Results Presentation
Boustead Singapore Limited / Boustead Projects Limited Joint FY2016 Financial Results Presentation 24 MAY 2016
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact such as forward-looking statements. These statements are based on current expectations, projections and assumptions about future events. Although Boustead Singapore Limited and Boustead Projects Limit
Slide 3: Presentation Agenda
Presentation Agenda Overview Boustead Group Financial Review Boustead Projects Financial Review Division Performance Review Questions & Answers
Slide 4: Overview
© B Since 1828
Slide 5: Introducing Boustead
Introducing Boustead Engineering the world of the future Established in 1828, Boustead Singapore is a OVERVIEW progressive global infrastructure-related engineering services and geo-spatial technology group Energy-Related Engineering Geo-Spatial Real Estate Technology Solutions (Boustead Projects)
Slide 6: Our Global Network
Our Global Network OVERVIEW UK Canada Italy USA Spain Turkey China South Korea Saudi Arabia UAE India Vietnam Thailand Venezuela Malaysia Singapore Indonesia Brazil Argentina Australia
Slide 7: Our Global Footprint
Our Global Footprint OVERVIEW
Slide 8: Our Global Footprint
Our Global Footprint ASIA & EUROPE AFRICA THE OVERVIEW OCEANIA AMERICAS East South West Eastern East North Asia Asia Europe Africa America China* Bahrain Hungary Tanzania Canada* Japan Cyprus Poland USA* Macau Jordan Russia North South Korea* Kuwait Slovakia Africa Latin America & Taiwan Oman Ukrain
Slide 9: Group Business Model
Group Business Model Undertaking only high value-added activities OVERVIEW across value chain VALUE CHAIN OF ACTIVITIES ENGINEERING FABRICATION DELIVERY In-house expertise for high Outsource low value-added: In-house expertise for high value-added: value-added: Fabrication Design Installation
Slide 10: Group Financial Review
Group Financial Review
Slide 11: Group Financial Results
Group Financial Results FY2016 FY2015 Chg GROUP FINANCIAL REVIEW (%) Revenue S$486.7m S$556.4m -13 Gross profit S$150.6m S$186.2m -19 Gross margin 31% 33% Profit before income tax (“PBT”) S$56.5m S$89.0m -36 PBT margin 12% 16% Profit attributable to equity holders S$28.2m S$63.3m -55 of the Company
Slide 12: Group Revenue Mix by Division
Group Revenue Mix by Division GROUP FINANCIAL REVIEW FY’15: 20% FY’15: 34% FY’15: 46%
Slide 13: Group Revenue
Group Revenue Impacted by state of global economy and heavily GROUP FINANCIAL REVIEW depressed state of global oil & gas industries 10-year CAGR: +5% -13% y-o-y
Slide 14: Group Net Profit
Group Net Profit Despite challenges, all three divisions remained GROUP FINANCIAL REVIEW profitable 10-year CAGR: +1% -38% -55% y-o-y y-o-y For illustration: additional net profit assuming no 11.0 demerger of Boustead Projects
Slide 15: Group Net Cash Position
Group Net Cash Position Group net cash position significantly improved to GROUP FINANCIAL REVIEW S$165.6m +125% y-o-y
Slide 16: Group Cash Flow
Group Cash Flow Net cash flow almost neutral due to positive cash GROUP FINANCIAL REVIEW inflow from operating and investing activities counterbalancing negative financing cash outflow
Slide 17: Return on Shareholders' Equity
Return on Shareholders’ Equity ROE dropped due to lower net profit GROUP FINANCIAL REVIEW
Slide 18: Earnings per Share
Earnings per Share Tracking net profit GROUP FINANCIAL REVIEW 10-year CAGR: +1% -56% y-o-y
Slide 19: Net Asset Value per Share
Net Asset Value per Share Dividend in specie of Boustead Projects’ shares as GROUP FINANCIAL REVIEW part of demerger 10-year CAGR: +11% -20% y-o-y
Slide 20: Group Orders Secured
Group Orders Secured Lower orders secured in challenging macro economic GROUP FINANCIAL REVIEW environment 10-year CAGR: +4% -27% y-o-y
Slide 21: Group Dividend
Group Dividend GROUP FINANCIAL REVIEW FY2016 FY2015 Interim dividend (paid) 1.0ct 2.0cts Final dividend (proposed) 2.0cts 2.0cts Total ordinary dividend 3.0cts 4.0cts Dividend in specie of 16.2cts - Boustead Projects’ shares (distributed) Total dividend 19.2cts 4.0cts
Slide 22: Group Dividend
Group Dividend Cash/scrip dividend payout ratio of 56%, maintained GROUP FINANCIAL REVIEW within historical payout ratio band
Slide 23: BP Group Financial Review
BP Group Financial Review Boustead Projects Limited (BP)
Slide 24: BP Group Financial Results
BP Group Financial Results BP GROUP FINANCIAL REVIEW FY2016 FY2015 Chg (%) Revenue S$255.5m S$255.4m +0 Gross profit S$59.0m S$57.3m +3 Gross margin 23% 22% PBT S$29.7m S$33.4m -11 PBT margin 12% 13% Net profit S$22.9m S$24.7m -7 Earnings per share* 7.1cts 7.7cts -8 Net asset value per share* **60.6
Slide 25: BP Group Revenue
BP Group Revenue Lower design-and-build revenue compensated for by BP GROUP FINANCIAL REVIEW higher leasing revenue
Slide 26: BP Group PBT
BP Group PBT Lower design-and-build PBT partially offset by higher BP GROUP FINANCIAL REVIEW leasing PBT
Slide 27: BP Group Net Profit
BP Group Net Profit BP GROUP FINANCIAL REVIEW Lower net profit due to challenging market conditions, higher overhead and finance expenses, and greater share of loss of associate and joint ventures
Slide 28: BP Group Cash Flow
BP Group Cash Flow Negative net cash flow due mainly to S$93.0m BP GROUP FINANCIAL REVIEW repayment of borrowings and S$80.0m dividend payment to Boustead Singapore under demerger
Slide 29: BP Group Return on Shareholders' Equity
BP Group Return on Shareholders’ Equity ROE rose due to lower retained profits after S$80.0m BP GROUP FINANCIAL REVIEW dividend payment to Boustead Singapore
Slide 30: Division Financial Review: Energy-Related Engineering
Division Financial Review Energy-Related Engineering
Slide 31: Energy-Related Engineering: Revenue, PBT & Orders Secured
Energy-Related Engineering Division Revenue, PBT & Orders Secured DIVISION FINANCIAL REVIEW FY2016 FY2015 Chg (S$) (S$) (%) Revenue 128.0m 190.3m -33 PBT 9.1m 33.4m -73 Orders secured 95m 105m -10 Sharp fall in revenue and profit • CAPEX and investment cuts across all parts of value chain • Cost o
Slide 32: Energy-Related Engineering Prospects
Energy-Related Engineering Prospects Focusing on cost management DIVISION FINANCIAL REVIEW • Current order book backlog: S$115m • Oil & gas outlook - Weak global crude and natural gas prices - Historically high global crude inventories - Potential M&A opportunities
Slide 33: Division Financial Review: Real Estate Solutions
Division Financial Review Real Estate Solutions
Slide 34: Real Estate Solutions: Revenue, PBT & Orders Secured
Real Estate Solutions Division Revenue, PBT & Orders Secured DIVISION FINANCIAL REVIEW FY2016 FY2015 Chg (S$) (S$) (%) Revenue 255.5m 255.4m +0 PBT 29.7m 33.4m -11 Orders secured 189m 284m -33 Comparable revenue • Challenging industrial real estate landscape • Expanding industrial leasehold portfo
Slide 35: Real Estate Solutions Prospects
Real Estate Solutions Prospects Focusing on overseas expansion and higher DIVISION FINANCIAL REVIEW value industries • Current order book backlog: S$208m • Industrial real estate outlook: - Challenging operating environment - Design-and-build contracts in niche growth higher value industries - Exp
Slide 36: Division Financial Review: Geo-Spatial Technology
Division Financial Review Geo-Spatial Technology
Slide 37: Geo-Spatial Technology: Revenue & PBT
Geo-Spatial Technology Division Revenue & PBT DIVISION FINANCIAL REVIEW FY2016 FY2015 Chg (S$) (S$) (%) Revenue 103.0m 110.6m -7 PBT 19.9m 22.7m -12 Decline in revenue and profit • Currency headwinds • Firm demand across Australia and South East Asia
Slide 38: Geo-Spatial Technology Prospects
Geo-Spatial Technology Prospects Steady prospects DIVISION FINANCIAL REVIEW • Sustained demand from government agencies • Continued expansion of workforce • Currency headwinds may affect margins
Slide 39: Thank You
= Thank You © B Since 1828
Slide 40: Questions & Answers
Questions & Answers