Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — H1 2007 Earnings Presentation
16 slides from Sembcorp Industries's earnings presentation, Aug 7, 2007
Slide 1: 1H2007 Results Announcement
1H2007 Results Announcement August 7, 2007 1 Scope of Presentation 1. CEO’s Report 2. Financial Review 3. Operations Review 4. Group Outlook 1
Slide 2: CEO's Report: 1H2007 Performance Round-Up
CEO’s Report Tang Kin Fei Group President & CEO 1H2007 Performance Round-Up Robust earnings growth from continuing operations • Turnover of $3.9bn, up 8% • PATMI before EI of $258.3m, up 55% Group PATMI before EI at $258.3m, up 48% Solid financial position • Net gearing at 0.05x • Interest cover at
Slide 3: Building Sustainable Growth
Building Sustainable Growth UTILITIES: A solid and growing base • Growth on existing sites, new contracts secured in Singapore and the UK • Replicating our multi-customer business model in China – New beachheads secured in Northeast China in Tianjin and Shenyang – Facilities expand in tandem with cu
Slide 4: Group Profit & Loss and Group Turnover
Group Profit & Loss ($M) 1H07 1H06 ∆% CONTINUING OPERATIONS Turnover 3,852 3,556 8 EBITDA 412 334 23 EBIT 324 252 29 PBT 394 278 42 PATMI 258 167 55 EPS (cents) 14.5 9.5 53 DISCONTINUED OPERATIONS1 Turnover - 621 NM PATMI - 8 NM GROUP Turnover 3,852 4,177 (8) PATMI before EI 258 174 48 EI - 394 NM P
Slide 5: Group PATMI and Group Capex
Group PATMI ($M) 1H07 1H06 ∆% CONTINUING OPERATIONS Utilities 141.7 92.7 53 Marine 98.2 55.1 78 Enviro 7.6 7.1 7 Parks 16.0 12.7 26 Other Businesses 7.2 5.8 24 Corporate (12.4) (6.6) (88) PATMI from Continuing Operations 258.3 166.8 55 DISCONTINUED OPERATIONS Logistics1 - 7.9 NM Engineering & Constr
Slide 6: Group Cash Flow and Group Borrowings
Group Cash Flow ($M) 1H07 1H06 CASH FLOW FROM OPERATING ACTIVITIES - before changes in working capital 409 352 - changes in working capital 186 (32) - payment for Solitaire settlement - (683) - tax paid (37) (24) 558 (387) CASH FLOW FROM INVESTING ACTIVITIES - divestment proceeds & sale of FA 112 79
Slide 7: Financial Indicators
Financial Indicators 1H07 FY06 (ACTUAL) Before EI EPS (cents) 29.1 * 21.6 ROE (%) 17.7 * 18.2 ROTA (%) 9.2 * 7.8 Interest Cover (times) 16 13 After EI EPS (cents) 29.1 * 58.5 ROE (%) 17.7 * 42.8 ROTA (%) 9.2 * 16.4 Interest Cover (times) 16 22 Per Share NAV ($) 1.56 1.59 NTA ($) 1.49 1.52 1H07 1H06
Slide 8: Utilities and Utilities Turnover & PATMI
Utilities 1H07 Turnover ($M) 1,667.2 (11%) EBITDA ($M) 226.0 (22%) EBIT ($M) 177.2 (27%) PATMI before EI ($M) 141.7 (53%) PATMI ($M) 141.7 (53%) ROE* (%) 26 • Continued profit growth • Strong performance by centralised utilities operations in Singapore and the UK * Annualised Wilton International, U
Slide 9: Centralised Utilities and Energy; Utilities: Singapore
Centralised Utilities and Energy Turnover ($M) 1H06 1H07 PATMI ($M) 1H06 1H07 Singapore 1,367.6 1,218.8 Singapore 55.7 57.5 Overseas 373.9 448.7 Overseas 40.1 82.8 TOTAL 1,741.5 1,667.5 TOTAL 95.8 140.3 Overseas Overseas 21% 27% Overseas Overseas 42% 59% Local Local Local Local 79% 73% 58% 41% 1H06
Slide 10: Utilities: UK and China
Utilities: UK GREEN ENERGY ON WILTON • Commissioning of 30 MW Wilton 10 in progress – generating renewable power • Scheduled to be fully onstream by 2H2007 • Eligible for ROCs and LECs OTHER KEY DEVELOPMENTS • Ensus confirms investment to build a 400 million litre per annum bio-ethanol plant on Wilt
Slide 11: Utilities: Vietnam and Middle East; Marine
Utilities: Vietnam and Middle East PHU MY 3, VIETNAM • Continued good performance by the facility • Operating at high load factor due to strong domestic demand Phu My 3, Vietnam FUJAIRAH 1 IWPP, UAE • Nine months of managing the Fujairah 1 IWPP • Facility is running well and surpassing contractual p
Slide 12: Marine and Enviro
Marine KEY DEVELOPMENTS • Strong net orderbook at $8.3bn with completion and deliveries till 2010 • New contracts secured in 1H2007 stand at $4.5bn • Completed and delivered in 1H2007 – Two jack-up rigs for Apexindo and Maersk – RJS FSO Conversion – 2,600 TEU vessel for Wan Hai Lines – 15 units of f
Slide 13: Enviro and Parks
Enviro KEY DEVELOPMENTS • Pre-disposal treatment – Commenced commissioning of municipal solid waste pre-disposal treatment plant – Expect to commence commercial operations by year-end • 16 ULAB collection centres set up by SembCorp Chunxing Alloy to support existing plants • Our Australian JVC expan
Slide 14: Parks: Vietnam Market; Group Outlook
Parks TAPPING ON FAST GROWING VIETNAM MARKET Bac Ninh Hanoi • Entry into North Vietnam with third VSIP project Haiphong – 700 ha (500 ha industrial and 200 ha residential) – Phase I: 200 ha, to commence land development in 1H2008 – 40.31% effective stake in VSIP–Bac Ninh – Total investment : US$103m
Slide 15: 2007 Outlook
2007 Outlook UTILITIES • Singapore operations expected to perform better in 2007 • UK operations did well in 1H2007, partly due to profit on the sale of land in 1Q2007. Operations continue to be underpinned by favourable supply contracts secured until end-2007 / early 2008. Wilton 10, 30 MW biomass
Slide 16: 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, projections and assumptions about future events. Although SembCorp Industries believes that these