Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — 9M2005 Earnings Presentation
22 slides from Sembcorp Industries's earnings presentation, Nov 7, 2005
Slide 1: SembCorp Industries 9M2005 Results
SembCorp Industries 9M2005 Results November 7, 2005 1
Slide 2: CEO's Report
CEO’S R EP OR T By Tang Kin Fei Group President & Chief Executive Officer SembCorp Industries 2
Slide 3: Highlights
Highlights Delivered top and bottom-line growth for 9M2005 - Turnover of $5.3bn, up 21% - PATMI of $212.8m, up 36% - PATMI before EI of $198.2m, up 50% (excl KNI) Maintained healthy balance sheet - Net cash position - Interest cover at 10 times Strong operating cash flow - Operating cash flow at $64
Slide 4: Highlights: Performance by Key Businesses
Highlights Performance by Key Businesses - Utilities Strong growth from overseas operations Singapore operations continued to perform well Upcoming China projects are on schedule for commercial operations; earnings contribution by 2006 - Marine Strong growth across all business segments, particularl
Slide 5: Highlights: Performance by Key Businesses
Highlights Performance by Key Businesses - Enviro Several factors caused weaker performance in 3Q05, namely, higher fuel cost, start-up costs for new overseas operations and one time write-off - Engineering & Construction Continued focus on process engineering projects Business environment remains c
Slide 6: Financial Review
F I N A N CI A L R EV I EW By Lim Joke Mui Group Chief Financial Officer SembCorp Industries 6
Slide 7: Group Profit & Loss
G r o u p P r o f it & L o ss $M 9M05 9M04 % (Restated) Turnover 5,317 4,400 21 EBITDA 489 387 26 PBT 366 284 29 PATMI before EI (excl KNI) 198 132 50 PATMI 213 157 36 EPS before EI (cts) 11.1 8.6 29 EPS after EI (cts) 12.0 8.6 39 Turnover grew 21% and PATMI grew 36% 7
Slide 8: Group Turnover
G r o u p T u r n o v e r $M 9M05 9M04 % (Restated) Utilities* 2,353 2,203 7 Marine 1,356 955 42 Logistics 398 349 14 Enviro 158 149 6 Engineering & Construction 886 628 41 Others 162 110 48 Corporate 4 6 (33) Total 5,317 4,400 21 *Note: Utilities (excluding Offshore Engineering) 2,106 1,853 14 Offs
Slide 9: Turnover (%) by businesses
Turnover (%) by businesses Marine Marine Utilities 26% 22% 44% Utilities 51% Logistics 8% Logistics E&C Others E&C 7% 14% 2% 17% Others 3% Enviro Enviro 3% 3% 9M05 9M04 Total Turnover - $5.3bn Total Turnover - $4.4bn Utilities & Marine contribute to 70% of Group Turnover 9
Slide 10: Turnover (%) by geographical areas
Turnover (%) by geographical areas* Europe 21% Europe 20% Singapore Singapore Rest of 47% 53% Asia Rest of 17% Asia 26% Others 10% Others 6% 9M05 9M04 Total Turnover - $5.3bn Total Turnover - $4.4bn Overseas turnover grew from 47% to 53% 10 *Based on geographical location of customers
Slide 11: Contribution to PATMI
C o n tr ib u tio n to P A T M I $M 9M05 9M04 % (Restated) Utilities 104.7 76.6 37 Marine 56.2 43.3 30 Logistics (excl KNI) 26.2 22.6 16 Enviro 6.4 10.8 (41) Engineering & Construction 1.0 (0.3) NM Others 13.0 12.1 7 Corporate (9.3) (33.1) 72 PATMI before EI (excl KNI) 198.2 132.0 50 EI 14.6 - NM PA
Slide 12: Exceptional Items
E x c e p tio n a l I te m s 3Q05 9M05 $'M $'M Utilities Divestment gain on Perth Power Plant - 8.9 Logistics Divestment gain on Trans-Link Express - 4.7 Others Divestment gain on PacNet - 23.1 Unrealised foreign exchange loss relating to an amount accumulated in connection (0.3) (22.0) with the Sol
Slide 13: Group Capex
G r o u p C a p e x $M 9M05 Major Equity Investment items 55.3 - Cosco Shipyard Group 47.5 - Conversion of Footwork convertible bonds 7.8 Major Fixed Assets items 157.5 Total Capex 212.8 13
Slide 14: Group Cash Flow
G r o u p C a sh F lo w $M 9M05 9M04 (Restated) Cash flow from Operating activities - before changes in working capital 435 360 - changes in working capital 250 (212) - tax paid (40) (34) 645 114 Cash flow from Investing activities - divestments proceeds & sale of FA 114 198 - acquisitions (incl. in
Slide 15: Group Borrowings
G r o u p B o r r o w in gs $M Sep 30, 2005 Dec 31, 2004 PF loans 417 513 Long-term 550 471 Short-term 431 922 Gross 1,398 1,906 Less Cash & FD (1,456)b (2,100)a Net Cash (58) (194) Net Cash (excl. PF*) (310) (575) Net Gearing Ratio - include PF* Net Cash Net Cash - exclude PF* Net Cash Net Cash * P
Slide 16: Financial Indicators
F in a n c ia l I n d ic a to r s 9M05 9M04 (Restated) Before EI EPS (cts) 11.1 8.6 EPS* (cts) 14.9 11.5 ROE* (%) 13.3 11.6 ROTA* (%) 5.4 5.6 After EI EPS (cts) 12.0 8.6 EPS* (cts) 15.7 11.5 ROE* (%) 14.0 11.6 ROTA* (%) 5.7 5.6 EVA ($m) 176.1 46.6 * Annualised Financial ratios improved 16
Slide 17: Financial Indicators
F in a n c ia l I n d ic a to r s Sep 30, 2005 Dec 31, 2004 (Restated) NAV per share (cts) 112 107 NTA per share (cts) 103 99 Net Gearing - excl. PF* (times) Net Cash Net Cash Net Gearing - incl. PF* (times) Net Cash Net Cash Interest Cover (times) 10 15 *PF - Non-recourse project financing Maintain
Slide 18: Group Outlook
G r o u p O u tlo o k The Group’s overall operating performance in 2005 is expected to be better than that of 2004 on a comparable basis, which excludes profit contribution from KNI in 2004 18
Slide 19: Thank You
a9 SembCorp —- Industries Thank You = == SembCorp =— / Tndusteiil
Slide 20: Appendix
a9 SembCorp —- Industries APPENDIX
Slide 21: Update on Solitaire
Update on Solitaire In regards to the on-going Solitaire arbitration between Allseas and Sembawang Corporation, there has been no material development on the case to date. The company understands through recent discourse between its lawyers and the Tribunal that the issuance of any award may well ta
Slide 22: Group Orderbook
G r ou p O r der b ook $M As at Sep 30, 2005 Utilities (SMOE) 349 Engineering & 2,000 Construction Environmental 460 Engineering Marine Engineering 5,733 TOTAL 8,542 Note: Excludes long-term contracts 22