Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — FY2007 Earnings Presentation
19 slides from Sembcorp Industries's earnings presentation, Feb 29, 2008
Slide 1: FY2007 Results Announcement
FY2007 Results Announcement February 29, 2008 Scope of Presentation • CEO’s Report • Financial Review • Operations Review • Group Outlook 2 2 1
Slide 2: CEO's Report: Strong Growth & Operating Results
CEO’s Report Tang Kin Fei Group President & CEO Strong Growth & Operating Results ($M) 02 03 04 05 06 07 FY2007 Performance PATMI before EI 161 184 228 278 381 557 Round-up EI 11 101 163 25 650 (31) Turnover 6% PATMI before EI 5-year (2002-2007) $8.6bn CAGR: 28% PATMI before EI 46% $557.2m ROE befor
Slide 3: Rewarding Shareholders; Positioned for the Future
Rewarding Shareholders DIVIDENDS AND CAPITAL REDUCTION (cts/share) 01 02 03 04 05 06 07 FY07 Ordinary Dividends 3.00 3.00 5.00 5.00 6.50 12.90 15.00 Special Dividends - 1.50 2.00 6.25 - 16.00 - Net ordinary dividends up Capital Reduction - - - - 11.70 15.00 - Dividend Payout Ratio (%) 24 37 35 42 10
Slide 4: Positioned for the Future
Positioned for the Future Capabilities to capture growth opportunities Energy • Renewable Energy: Sembcorp Biomass Power Station, one of the UK’s largest biomass renewable energy projects Water • High COD Wastewater Treatment: Zhangjiagang high concentration wastewater treatment facility selected as
Slide 5: Financial Review: Group Profit & Loss
Financial Review Lim Joke Mui Group CFO Group Profit & Loss ($M) FY07 FY06 ∆% CONTINUING OPERATIONS Turnover 8,619 7,486 15 EBITDA 850 675 26 EBIT 667 510 31 PBT 813 615 32 PATMI 557 373 49 EPS (cents) 31.3 21.2 48 DISCONTINUED OPERATIONS1 Turnover - 621 NM PATMI - 8 NM GROUP Turnover 8,619 8,107 6
Slide 6: Group Turnover and Group PATMI
Group Turnover ($M) FY07 FY06 ∆% CONTINUING OPERATIONS Utilities1 3,736 3,426 9 Marine 4,512 3,539 27 Enviro 205 210 (2) Parks 23 65 (64) Other Businesses1 143 246 (42) 8,619 7,486 15 DISCONTINUED OPERATIONS Logistics2 - 133 NM Engineering & Construction3 - 488 NM TOTAL 8,619 8,107 6 1 Offshore Engi
Slide 7: Utilities Turnover & PATMI; Exceptional Items
Utilities Turnover & PATMI ($M) FY07 FY06 ∆% TURNOVER Singapore 2,879.4 2,671.1 8 UK 829.9 765.7 8 Other countries 56.3 27.6 104 Total Revenue 3,765.6 3,464.4 9 PATMI Singapore 126.5 99.6 27 UK 106.8 91.2 17 Other countries 25.1 8.9 182 Corporate & Others* (28.2) (13.6) (107) Gain on sale of SMOE -
Slide 8: Group Capex and Group Cash Flow
Group Capex ($M) FY07 Fixed Asset Items 456.9 – Utilities 321.4 – Marine 106.8 – Enviro 25.2 – Other Businesses 3.5 Equity Investments 68.9 – Utilities 3.2 – Marine 64.5 – Other Businesses 1.2 TOTAL 525.8 15 15 Group Cash Flow ($M) FY07 FY06 CASH FLOW FROM OPERATING ACTIVITIES – before changes in wo
Slide 9: Group Borrowings and Financial Indicators
Group Borrowings ($M) Dec 31, 07 Dec 31, 06 PF loans 511 538 Long-term 398 622 Short-term 432 163 Gross 1,341 1,323 Less: Cash and FD (1,297) (1,186) Net Debt 44 137 Net Gearing Ratio 0.01 0.04 Exclude PF* Net Cash (306) (238) Net Gearing Ratio Net Cash Net Cash * PF – Non-recourse project financing
Slide 10: Operations Review: Utilities
Operations Review Tang Kin Fei Group President & CEO Utilities FY07 Turnover ($M) 3,765.6 ( 9%) EBITDA ($M) 404.7 (10%) EBIT ($M) 302.1 ( 9%) PATMI before EI ($M) 230.2 (19%) PATMI ($M) 230.2 (19%) ROE (%) 24 • Strong performance by Singapore and UK operations Sembcorp Utilities, Singapore 10
Slide 11: Utilities Key Developments: Singapore
Utilities Key Developments Singapore • Secured $240 million of new and renewed utilities and gas contracts (average contract duration of 13 years) • Heads of agreement signed for the importation of an additional 90 BBtu per day of natural gas from Indonesia. Existing capacity augmented by 26% • Star
Slide 12: Utilities Key Developments: UK
Utilities Key Developments UK • Continued growth on Wilton International - Ensus building a 400 million litre per annum bio-ethanol plant on site. Land sales and 15-year utilities agreement secured • Secured $1.4 billion of new and renewed contracts (including the 15-year Ensus utilities contract) •
Slide 13: Utilities Key Developments: China
Utilities Key Developments Zhangjiagang High Concentration Wastewater Treatment Facility, China • Selected by Governments of Singapore and China as showcase for integrated water resources management • 15,000 m3/day facility (equivalent to a 120,000 m3/day municipal plant) is first in China to treat
Slide 14: Utilities Other Markets; Marine
Utilities Key Developments Other Markets • Vietnam: Phu My 3 continued • UAE: Fujairah 1 IWPP to perform well completed one year of operations and surpassed contractual plant availability Phu My 3 Fujairah 1 IWPP 27 27 Marine FY07 Turnover ($M) 4,513.1 (27%) EBITDA ($M) 413.1 (51%) EBIT ($M) 346.7 (
Slide 15: Marine Key Developments; Enviro
Marine Key Developments • Net orderbook at $7.4 billion as at February 22, 2008 with completions and deliveries until 2011 • Record $5.4 billion worth of contracts secured in 2007. Contracts secured in 2008 worth $401 million to-date • Ship repair demand and rig building fundamentals remain strong,
Slide 16: Enviro Key Developments; Parks
Enviro Key Developments • Development of new pre-disposal treatment method: Solid waste treatment and recycling plant in Singapore – Lowers disposal cost – Recovery of ferrous, non-ferrous and plastics to improve yield of recyclables – Exploring alternative use of by-products and residue – Initial s
Slide 17: Industrial Parks Key Developments
Industrial Parks Key Developments • VSIP II in southern Vietnam – 95% of the land taken up and factory space fully occupied – 45 new customers secured in 2007 • Bac Ninh in northern Vietnam – Entry into Northern Vietnam with a 700-hectare integrated industrial park in Bac Ninh, 20 km from Hanoi – 15
Slide 18: Summary; 2008 Group Outlook
Summary • A focused Sembcorp with strong international operations • Performance underpinned by stable baseload earnings from long-term contracts and a strong orderbook • Capabilities to capture opportunities in fast growing sectors (Energy, Water and Environment) • Beachheads in fast growing markets
Slide 19: 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