Hyflux Ltd. 20 February Slide 1

Transcription

1 Hyflux Ltd FY2013 Results Review 20 February 2014 Slide 1

2 Disclaimer FORWARD-LOOKING STATEMENT This presentation has been prepared by Hyflux Ltd for the information of the attendees of this presentation. The presentation may contain forward-looking statements which are based on current expectations, projections and assumptions about future events. Although Hyflux believes that these expectations, projections and assumptions are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions about Hyflux and its business operations that could cause actual results to differ materially from those expressed or implied by these forwardlooking statements. Such risks include industry and economic conditions; currency fluctuations between the Singapore dollar and other currencies; governmental, statutory, tax, public policy and regulatory changes; and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements which are based on current views of Hyflux s management on future events. Any forward-looking statement in this presentation is accurate only as of the date it is issued. Hyflux has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. The presentation is not and does not constitute or form part of any offer, invitation or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the basis of, or be relied upon in connection with, any contract, commitment or investment decision. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of Hyflux Ltd or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this presentation. Slide 2

3 Executive highlights Completed Tuaspring Desalination Plant (Singapore s largest) in September 2013 Revenue and profits reflect timing of project completion during the year Actively expanding our global footprint Slide 3

4 Revenue & profit S$ mil FY2013 FY2012 % Change Total Revenue (18) PBT (32) PATMI (28) EBITDA Gross Margin 50% 39% Net Margin 8% 10% Revenue and profits reflect the timing of the completion of projects such as Tuaspring Desalination Plant in 3Q FY13. Slide 4

5 Asia ex-china and municipal sector continued to be key contributors S$ mil Revenue by Region S$ mil Revenue by Sector 2.7 (1%) 49.9 (7%) 7.3 (2%) 28.6 (5%) (76%) Asia ex-china 400 Others (87%) China MENA (93%) (92%) Industrial Municipal (20%) 47.3 (9%) 22.3 (4%) 28.9 (4%) FY2013 FY FY2013 FY2012 Slide 5

6 Expenses S$ mil FY2013 FY2012 % Change Raw Materials & Consumables (33) Staff Costs (13) Depreciation, Amortisation & Impairment Other Expenses Finance Costs Total Operating & Finance Expenses (16) Lower raw materials and consumables used as well as staff costs were a result of the completion of some major projects and improved cost management. Depreciation, amortisation and impairment increased due mainly to impairments and write-downs of the carrying value of non-core business and technology related assets. The rise in other expenses was due to the higher utilities and professional fees incurred. Slide 6

7 Balance sheet S$ mil 31 Dec Dec 2012 Equity Non-current Assets 1,776 1,302 Non-current Liabilities 1, Net Current Assets Net Gearing 1.15x 0.56x Increase in non-current assets was a result of continued investment in water plants. Non-current liabilities rose due to an increase in borrowings including non-recourse financing. Slide 7

8 Cash flow S$ mil FY2013 FY2012 Operating CF before SCA Operating CF after SCA and tax paid (423) (234) Investing CF (26) (39) Financing CF Net Cash Changes (281) (142) Cash & Cash Equivalents SCA: Service concession arrangement Higher operating CF after SCA and tax paid reflected continued investments in water plants. Cash used in investing activities were incurred mainly for capital expenditure in support of the Group s activities. Slide 8

9 Final dividend of 1.60 Singapore cents per ordinary share proposed Dividend per ordinary share* (Singapore cents) *Dividends have been restated to reflect 1-for-2 bonus share issue in 2010 Slide 9

10 Key Project Highlights Slide 10

11 Tuaspring Desalination Plant, Singapore Singapore s second and largest SWRO desalination plant Capacity 318,500 m 3 /day Online 2013 Project type Other details Design, build, own, operate on 25 years concession Power plant is progressing as planned but its completion is dependent upon the operational readiness of the national power grid to connect to the plant. Slide 11

12 Zunyi Wastewater Treatment Plant, China Hyflux s largest wastewater treatment plant in China Capacity 150,000 m 3 /day Online 2013 Project type Other details Build, own, transfer on 30 years concession Wastewater treatment plant treats domestic wastewater in southern Zunyi City, Guizhou Province. Slide 12

13 Surat Membrane-based Water Recycling Plant, Gujarat, India India s first and largest membranebased water recycling project Capacity 40,000 m 3 /day Online 2013 Project type Technology package (design, supply, installation, testing & commissioning of membrane systems for plant) Other details Membrane-based water recycling plant produces industrial-grade water for industrial estate in Surat. Slide 13

14 Other projects Tembusu Wastewater Treatment Plant, Singapore Balikpapan & Bontang Desalination Projects, Indonesia Leachate MBR Project, Malaysia Slide 14

15 Order book S$ mil 3,000 2,500 2,897 1,025 2, ,000 1,848 1,874 1,500 1, ,480 1, , ,145 1,872 1, , Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 EPC O&M Note: 1. O&M order book is a summation of future revenues of our portfolio of plants over year concession periods. 2. Dec-13 EPC order book includes Dahej desalination project; WPA was signed in January Dec-13 O&M order book includes Tuaspring and Magtaa projects. Slide 15

16 Group Outlook Slide 16

17 Group outlook Growing water scarcity, need for better sanitation, recognition of the impact of water risks on businesses are driving growth of the water sector. Slower 1H is expected given the timing of completion of Tuaspring and the start-up of Dahej. Focus on tendering for various large projects in Middle East and Africa. Leverage proven expertise and core capabilities across water value chain. Slide 17

18 Focus on growth markets Growth segments like advanced wastewater treatment, reuse and desalination Opportunities in fast-growing regions Countries with water infrastructure development programmes Slide 18

19 Potential projects in next 12 months in Hyflux s key markets Country Project Capacity (m 3 /day) Saudi Arabia Al Khafji SWRO Desalination 300,000 Saudi Arabia Rabigh SWRO Phase 4 600,000 Saudi Arabia Yanbu 4 300,000 Saudi Arabia Yanbu 5 100,000 Saudi Arabia Shoaiba 4 IWPP 650,000 Saudi Arabia Khobar 4 IWPP 250,000 Saudi Arabia Khobar 5 220,000 Saudi Arabia Jubail 4 320,000 Oman Qurayyat IWP 181,840 Oman Suwaiq IWP 227,300 Qatar Ras Laffan Industrial Desalination IWP 204,570 Kuwait Doha East 190,932 Kuwait Doha West 454,600 Source: GWI November 2013 Slide 19

20 Potential projects in next 12 months in Hyflux s key markets Significant opportunities in Hyflux s key markets with estimated US$8 bn* worth of projects made available for tender Country Project Capacity (m 3 /day) Nigeria Yewa I 227,300 Nigeria Yewa II 227,300 Nigeria Ibeshe I 227,300 South Africa Cape Town SWRO 100,000 South Africa Durban SWRO 150,000 x 2 South Africa Saldanha Bay 25,500 India Chennai 3 200,000 India Chennai Nemmeli extension 150,000 Singapore Changi NEWater 228,000 Total 5,684,642 Source: GWI November 2013 * Estimates based on GWI s projected capacity, actual project value may vary. Slide 20

21 Perpetual Capital Securities In January 2014, Hyflux raised $300 million perpetual capital securities. Hyflux is now in a good position to capture the substantial opportunities available in our target markets. Slide 21

22 Building a stable business (Recap of FY2012 presentation) Growing recurring revenue stream Over the years, Hyflux has been developing and growing our recurring revenue base. Today, we are seeing rising recurring income streams from O&M services and asset returns, membrane sales and other services. Our O&M revenue is expected to grow substantially with the start of operations of Tuaspring Desalination Plant in 2H2013. By FY2016, our O&M revenue will capture the full impact of our current portfolio. Slide 22

23 Recurring gross operating income S$ mil Note: 1. Estimates based only on existing portfolio and do not include any potential projects. 2. Includes O&M and asset returns from existing plants in China & Singapore, Tuaspring, Magtaa, Dahej, and membrane sales and other services. 3. Gross operating income is approximately EBITDA. 4. Actual results may vary due to external factors. Slide 23

24 Hyflux s Management Committee LIM Suat Wah WONG Lup Wai OON Jin Teik Olivia LUM Milind Kumar Gary KEE Winnifred HEAP ZHAO Qing ZHAO Ping Peter WU KUM Mun Lock Slide 24

25 25 WATER SOLUTIONS THAT IMPACT LIVES Slide 25