FY2007 Full Year Results Review Sam Ong Group Deputy CEO & CFO. 27 th February 2008

Transcription

1 FY2007 Full Year Results Review Sam Ong Group Deputy CEO & CFO 27 th February 2008

2 The Agenda 1 The Financial Review 2 The Business Outlook 2

3 The 2007 Summary Human Capital Water 30% CAGR ( ) India, MENA China Singapore / SE Asia Industrial Energy Material Sci Financial Capability Operational Capability Technology Building The Record Order Book China Momentum : BOT & TOT Algeria Ready to EPC Continued growth in Industrial Sales Investing For Profitable Growth People & Process Projects Technology Sustaining Growth Banks Partners Business Trust Platform 3

4 The Financial Review

5 The Early Adoption of INT FRS 112 Service Concession Arrangements Effective 1 January 2007, the Group has early adopted INT FRS 112 Service Concession Arrangements. The Group has concession arrangements with governing bodies in China to operate water treatment, waste water treatment and water recycling plants. These BOT & TOT (excluding BOO) concession arrangements fall within the scope of the INT FRS 112. Revenue for construction services and the corresponding financial receivables and / or intangible assets arising are recognised based on percentage of completion method. 5

6 The Early Adoption of INT FRS 112 Service Concession Arrangements The effects of adoption that are material to the income statements are : Increase / (decrease) in: FY2007 S$'000 FY2006 S$'000 Revenue 19,070 12,542 Raw materials and consumables used 15,234 13,435 Finance income (136) * Finance expense * Balance less than S$1,000 6

7 The 2007 Profits FY 2007 FY2006* +/ (-) % Group Sales S$192.8m S$142.4m 35% Operating profit S$35.4m S$22.0m 61% PBT S$38.7m S$20.2m 92% PATMI S$32.9m S$15.5m 113% EBITDA % 28% 24% 17% PATMI Margin % 17% 11% 55% EPS basic 6.32 cents 3.00 cents 111% * Restated due to adoption of INT FRS

8 The 2007 Expenses FY 2007 FY 2006* + / (-) % Raw Materials S$106.0m S$77.8m 36% Personnel S$30.7m S$20.0m 53% Other Operating Expenses S$10.4m S$14.5m (28%) Depreciation & Amortization S$7.2m S$5.0m 45% Finance Expense S$8.4m S$9.1M (8%) Finance Income Total Operating & Finance Expenses S$2.0m S$164.7m S$5.5m S$131.9m (63%) 25% * Restated due to adoption of INT FRS

9 The 2007 Balance Sheet In S$ m FY 2007 FY 2006 Change + / (-)% Total Equity % Total non-current assets (36.8) (15%) Total non-current liabilities % Net Current Assets % Debt-Equity Ratio (0.11) (26%) 9

10 The 2007 Cash Flow In S$ m FY 2007 FY 2006 Change Cash flow from: Operating Activities 77.8 (26.8) NM Investing Activities (142.2) (45.6) 212% Financing Activities % Net Increase / (Decrease) in cash & cash equivalent 65.4 (35.2) NM Cash & cash equivalents at end of year % Operating activities net cash generated from operating activities mainly due to improvement in working capital. Investing activities Cash used in investing activities mainly due to investments in subsidiaries & associates and acquisition of property, plant and equipment. Financing activities mainly due to additional bank loan drawn down. 10

11 The Revenue by Sector FY 2007 FY 2006 Others 1% $102.3m $102.3m $1.5m $89.0m Municipal 46% Others 5% $7.0m $45.3m Municipal 32% $90.1m Industrial 53% Industrial 63% Our established track record, know-how and differentiated capabilities provide us with a strong platform to continue our growth in the municipal and industrial sectors. 11

12 The Revenue by Country SINGAPORE 7% MENA / OTHERS 12% $12.8m $23.0m FY 2007 MENA / OTHERS SINGAPORE 7% 19% $27.0m $10.6m FY 2006 $157.0m $157.0m $104.8m China 81% China 74% China remains a dominant market for the Group, with a steady pipeline of water projects. 12

13 The Business : Water

14 Signed Projects In China S$500+ million Project Year of Completion Project Value (S$m) Concession Period (Yrs) Capacity (m3/day) Jiangsu, Wuxi WWTP In operation ,000 Jiangsu, Changshu WWTP In operation ,000 Jiangsu, Taizhou WWTP In operation ,000 Zhejiang, Tiantai WWTP In operation ,000 Liaoning, Liaoyang ,000 WWTP/WRP Jiangsu, Yangzhou WWTP ,000 Hebei, Langfang 2007/ ,000/35,000 WWTP/WRP Jiangsu, Wujin WWTP ,000 Tianjin Beichen, WWTP/WRP /30,000 Jiangsu, Guanyun WWTP 3Q ,000 Jiangsu, Leping WWTP 4Q ,000 Tianjin Beichen Shuangjie, WWTP/WRP 1Q09 18/ ,000/30,000 14

15 Algeria S$300+ million 15

16 India Desalination Waste Water NeWater Used Oil Industrial Water 16

17 The Business : Industrial Sales 17

18 China Industrial S$100+ million 23 Provinces Petrochemical Biotechnology Pharmaceutical Food & Beverages 18

19 Asean & India : Industrial Sales & Process Application 19

20 Business Outlook : Energy 20

21 The Oil Projects Completed : Singapore, China & Saudi Arabia Completing : Vietnam, Indonesia, Phil, Mal & India 21

22 The Fuel Projects 22

23 The Farmers EPC O&M Biz Operate Profitably & Safely Covenants / Profit Optimization Concession Agreement Investment Process Control & Excellence Project Management Accountability & Execution Technology + Commercialization Sustainability Critical Projects Competitive Advantage A Discipline Platform For A High Growth Company & A High Performance Team 23

24 The Bankers Low Debt Equity Ratio 0.32x Optimize Capital Structure Business Trust and Incubator Fund Equity (when needed) to Increase Capacity to Fund Large Projects and M&A Q406 net gearing was at 0.43x Q407 net gearing was at 0.32x US$138m syndicated loan Project financing Infrastructure equity / loan partners SingSpring Sub Trust Hyflux Water Trust Incubation and Development capital for funding & market access Convertible bonds New issuance 24

25 The Business Model Operational Cash Flows Asset 2008 (1) Project Management (2) Invest in People & Process (3) Capitalize on Technology Equity, Debt Structured Finance Invest Divest Securitise Restructure 25

26 The Growth (1) Order Book Dec S$863m Municipal projects - S$744m Industrial projects - S$119m (2) Growth in order book in 2007 mainly contributed by : Our pioneer project in Algeria New municipal projects in China Dec-06 Dec-07 -> 2008 not to scale Industrial sector in China with strong demand in the pharmaceutical, pharma and biotechnology sectors (3) 2008 Momentum 26

27 FY2007 Full Year Results Review Sam Ong Group Deputy CEO & CFO 27 th February