Sembcorp Industries Ltd. · SGX:U96
Sembcorp Industries — H1 2012 Earnings Presentation
22 slides from Sembcorp Industries's earnings presentation, Aug 3, 2012
Slide 1: 1H2012 Results Announcement
1H2012 Results Announcement August 3, 2012 © Sembcorp Industries 2012 1H2012 Performance Round-up Turnover at S$5.1 billion, up 22% Profit from Operations at S$622.3 million, up 9% Net Profit at S$367.4 million, up 10% EPS at 20.6 cents ROE (annualised) at 17.1% Strong 1H2012 performance from Utilit
Slide 2: Strong Platforms
Strong Platforms Utilities Marine Urban Development Other Businesses 53% 40% 41% 51% 1H2011 Net Profit* 47% 1H2012 Net Profit* 59% S$346.8 M S$377.9 M 3% 4% 5% 3% *Net Profit excluding Corporate Costs © Sembcorp Industries 2012 3 Utilities © Sembcorp Industries 2012 2
Slide 3: Utilities: Strong profit growth from Singapore
Utilities Strong profit growth Highlights from Singapore Key Contributors Singapore • Completed Sembcorp Integrated Wastewater Treatment Plant @ Net Profit • Better performance primarily Banyan S$193.7 million 41% due to additional gas sales in Singapore • Officially opened Sembcorp Woodchip Boiler
Slide 4: Utilities China: Growing our reach in China
Utilities China Growing our reach in China WIND POWER From 12 to 18 power and water INNER MONGOLIA operations across 11 provinces in China CHENBA’ERHU HULUNBEIER HEILONGJIANG XINBA’ERHU INNER Capacity (each): 49.5 MW MONGOLIA HEBEI LIAONING HUANGHUA I & II Capacity: 99 MW TIANJIN HEBEI Total gross w
Slide 5: Utilities Oman: Salalah Independent Water and Power Plant
Utilities Oman Salalah Independent Water and Power Plant Fujairah • Emirates Sembcorp Water & Power Company Power Capacity: 490 MW Desalinated 15 MIGD Salalah Water Capacity : (69,000m³/day) • Sembcorp Salalah Power & Water Company • Largest and most energy efficient power and water plant in the Gov
Slide 6: Marine: Strong orderbook momentum
Marine © Sembcorp Industries 2012 Marine Contracts Secured (as at August 2, 2012) Strong orderbook S$3.1 billion momentum Contracts secured YTD Drillship 2012: Semi-submersible Rigs Feb 6 – US$792.5 million Jack-up Rigs drillship from a subsidiary of Net Profit* Conversion/Offshore Sete Bras
Slide 7: Marine: Net orderbook
Marine Strong orderbook momentum Drillship Semi-submersible Rigs Jack-up Rigs 9.0 Conversion/Offshore & Platforms Shipbuilding Net Orderbook of S$6.6 billion 7.0 as of August 2, 2012 15% 5.3 5.5 5.5 5.1 24% 4.4 Net orderbook (S$ billion) 40% 21% FY2005 FY2006 FY2007 FY2008 FY2009 FY201
Slide 8: Urban Development: Development pipeline boosted
Urban Development Development pipeline Land Commitments New Projects boosted with new China 249 hectares and Vietnam projects • Continued interest in VSIP VSIP Quang Ngai, Vietnam industrial, commercial, residential • 1,120 ha development land • Establishing our presence across Net Profit S$12.3 mil
Slide 9: Urban Development: Positioned in Key Growth Areas in China
Urban Development Positioned in Key Growth Areas in China Total gross project size 2,842 hectares 54% WUXI-SINGAPORE SINO-SINGAPORE SINGAPORE-SICHUAN INDUSTRIAL PARK NANJING ECO HI-TECH INNOVATION 342 hectares HI-TECH ISLAND PARK 1994 1,500 hectares 1,000 hectares 2009 2012 Leveraging on urbanisatio
Slide 10: Group Profit & Loss
Group Profit & Loss (S$M) 1H12 1H11 Δ% Turnover 5,099 4,169 22 EBITDA 675 606 12 Profit from Operations1 622 571 9 EBIT 546 493 11 Share of results: Associates & JVs 76 78 (3) Net Finance Cost (28) (26) (7) PBT 594 545 9 Tax (95) (81) (16) Non-Controlling Interests (132) (129) (2) Net Profit 367 335
Slide 11: Group Profit from Operations and Net Profit
Group Profit from Operations (PFO) (S$M) 1H12 1H11 Δ% Utilities 298.0 193.2 54 Marine 301.6 356.3 (15) Urban Development 15.3 12.8 20 Other Businesses 14.5 14.6 (1) Corporate (7.1) (6.2) (16) TOTAL PFO 622.3 570.7 9 © Sembcorp Industries 2012 21 Group Net Profit (S$M) 1H12 1H11 Δ% Utilities 193.7 13
Slide 12: Utilities Net Profit
Utilities Net Profit By Geography (S$M) 1H12 1H11 Δ% The Americas UK 3% Middle East & 6% Singapore Singapore 129.1 87.6 47 Africa 65% China 10.8 11.6 (7) 9% Rest of Asia1 & Australia 23.9 17.9 33 Rest of Asia Middle East & Africa2 17.3 11.3 53 & Australia 1H12 UK 12.5 12.0 4 12% The Americas3 5.3 2.
Slide 13: Group Capex, Equity Investment and Free Cash Flow
Group Capex and Equity Investment (S$M) 1H12 1H11 Capital Expenditure – Utilities 419.0 286.8 – Marine 221.4 123.5 – Other Businesses 1.5 3.6 641.9 413.9 Equity Investment – Utilities 2.4 163.0 – Marine 10.8 - – Other Businesses - 3.0 13.2 166.0 © Sembcorp Industries 2012 25 Group Free Cash Flow (S$
Slide 14: Group Borrowings
Group Borrowings (S$M) June 30,12 Dec 31,11 PF loans 1,172 1,024 Non-PF loans - Long-term 959 873 - Short-term 39 146 Loans due to NCI1 - Long-term 134 140 - Short-term 1 1 Gross 2,305 2,184 Less: Cash and cash equivalents (2,077) (2,995) Net Debt / (Cash) 228 (811) Net Gearing Ratio 0.04 Net Cash E
Slide 15: Financial Indicators and Group Outlook
Financial Indicators 1H12 1H11 FY11 EPS (cents) 41.1* 35.8* 45.3 ROE (%) 17.1* 15.5* 20.4 ROTA (%) 9.3* 8.6* 10.7 Interest Cover (times) 13 19 20 Per Share NAV (S$) 2.30 2.22 2.31 Economic Value Added EVA (S$M) 270.8 255.9 728.2 * Annualised © Sembcorp Industries 2012 29 29 Group Outlook Utilities U
Slide 16: Group Outlook: Vital Partners. Essential Solutions.
Group Outlook Urban Development While the slowdown in the global economy may affect the pace of land sales, our Urban Development business is expected to deliver a steady performance in 2012. Group The Group, underpinned by resilient businesses and a healthy pipeline of projects will continue to mak
Slide 17: Disclaimer
Disclaimer This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements. These forward-looking statements are based on current expectations, projections and assumptions about future events. Although Sembcorp Industries believes that these
Slide 18: Group Profit & Loss 2Q12
Group Profit & Loss (S$M) 2Q12 2Q11 Δ% Turnover 2,668 2,166 23 EBITDA 365 309 18 Profit from Operations 336 296 14 EBIT 298 253 18 Share of results: Associates & JVs 38 43 12 Net Finance Cost (19) (13) (44) PBT 317 283 12 Tax (52) (42) (25) Non-Controlling Interests (74) (66) (13) Net Profit 191 175
Slide 19: Group Profit from Operations and Net Profit 2Q12
Group Profit from Operations (PFO) (S$M) 2Q12 2Q11 Δ% Utilities 155.2 104.6 48 Marine 170.8 179.2 (5) Urban Development 9.6 8.4 14 Other Businesses 4.5 5.7 (22) Corporate (3.8) (2.2) (76) TOTAL PFO 336.3 295.7 14 © Sembcorp Industries 2012 37 37 Group Net Profit (S$M) 2Q12 2Q11 Δ% Utilities 94.7 75.
Slide 20: Utilities Turnover and Profit From Operations
Utilities Turnover By Geography (S$M) 1H12 1H11 Δ% Singapore 2,469.7 2,104.2 17 China 42.7 40.4 6 Rest of Asia 1 & Australia 5.3 3.4 55 Middle East & Africa2 97.8 38.5 154 UK 221.7 212.2 5 The Americas3 21.9 21.0 5 Corporate 21.4 - NM TOTAL TURNOVER 2,880.5 2,419.7 19 2Q12 2Q11 Δ% Singapore 1,220.1
Slide 21: Utilities Net Profit and Turnover
Utilities Net Profit By Geography (S$M) 1H12 1H11 Δ% Singapore 129.1 87.6 47 China 10.8 11.6 (7) Rest of Asia1 & Australia 23.9 17.9 33 Middle East & Africa2 17.3 11.3 53 UK 12.5 12.0 4 The Americas3 5.3 2.4 120 Corporate (5.2) (5.4) 5 TOTAL NET PROFIT 193.7 137.4 41 2Q12 2Q11 Δ% Singapore 64.2 47.2
Slide 22: Utilities Profit from Operations and Net Profit by Product Segment
Utilities Profit from Operations (PFO) By Product Segment (S$M) 1H12 1H11 Δ% Energy 199.9 115.3 73 Water 57.6 53.1 8 On-site Logistics & Solid Waste Management 39.8 28.8 38 Corporate 0.7 (4.0) NM TOTAL PFO 298.0 193.2 54 2Q12 2Q11 Δ% Energy 103.1 67.0 54 Water 29.2 26.8 9 On-site Logistics & Solid W