FY2009 FULL YEAR RESULTS REVIEW Sam Ong Group Deputy CEO & CFO Cho Wee Peng Group EVP & CIO 24 February 2010
Agenda FY2009 Financial Results Review Overview and Key Milestones in FY2009 Looking to FY2010 & Beyond 2
3 FY2009 Financial Results
Record Profits S$ mln FY 2009 FY 2008 +/ -% Revenue 525 554 (5%) PBT 83 70 18% PATMI 75 59 27% The MENA region continued to perform strongly due to the ramping up of EPC activities on the world s largest seawater RO desalination plant in Magtaa, Algeria. 4
S$mln 600 400 200 0 Revenue by Country 16 3% 223 40% 315 57% FY08 SG/OTH MENA China Revenue Breakdown 13 2% 331 63% 181 35% FY09 S$mln 600 550 500 450 400 Revenue by Sector 11 2% 61 11% 482 87% Others Industrial Municipal 4 1% 51 9% 470 90% FY 08 FY 09 With progressive EPC recognition of Tlemcen and Magtaa, MENA s proportion of Group revenue has climbed to 63%. Municipal sales continue to be key driver with execution of MENA projects. Lower activities in industrial sector. 5
Sequential Growth Chart S$mil 120 100 80 Compounded Average Growth Rate (CAGR) of EBITDA and PBT EBITDA PBT CAGR 32% (2002 2009) PBT 105 85 83 70 60 57 50 55 40 20 14 12 22 20 33 29 34 20 39 0 2002 2003 2004 2005 2006 2007 2008 2009 EBITDA and PBT CAGR from 2002 to 2009 is 33% and 32% respectively 6
Decline in Overall Expenses S$ mln FY 2009 FY 2008 +/-% Raw Materials & Consumables 309 388 (20%) Staff Costs 59 53 13% Depreciation & Amortisation 17 10 70% Other Exp 58 31 86% Finance Cost 9 10 (9%) Total Operating & Fin Exp 452 492 (8%) Raw materials and consumables used decreased due to better cost mgt and project execution. Staff costs increased due to preparation for the execution of Magtaa plant, and new staff for operation and maintenance for the newly completed plants. Other expenses increased due to higher tender fees, bank charges, selling expenses, FX differences and impairment allowance on inventory obsolescence, trade and other receivables. 7
Gearing Remains Healthy S$ mln 31 Dec 09 31 Dec 08 Equity 393 308 LT Assets 523 462 LT Liabilities 361 214 Current Liabilities 318 325 Net Current Assets 231 60 Net Gearing 0.59x 0.54x Long Term Assets increased mainly due to the acquisition of subsidiaries during the financial year and additional capital injection to associates. Current Assets increased mainly due to trade AR and cash and fixed deposits. Long Term Liabilities rose mainly due to increased bank borrowings to support the Group s expansion and investment activities. Net gearing remains stable at 0.59X 8
Stronger Cash Flow from Operations S$ mln FY 2009 FY 2008 CF Operations 61 30 CF Investing (93) (92) CF Financing 113 31 Net Cash Changes 80 (31) Cash & Equivalents 167 91 Increased cashflow from operations in line with increased operating profit. Cash continues to be used to invest in capital expenditure of PPE and intangible assets to support the Group s expansion, as well as in subsidiaries and associates. Cash from financing activities arose mainly from proceeds from borrowings to fund the Group s investments. 9
Positive Margin Trend FY 2009 FY 2008 Gross Margin 41% 30% Net Margin 14% 11% Working Capital Days 101 97 ROE 19% 19% Improvement in margins are in line with the Group s prudent cost management. 10
Gradual Increase in DPS Reflects Growing Profitability Dividend Per Share (S$ Cents/Share) 5.00 3.43 1.89 0.70 1.27 1.35 1.35 2003 2004 2005 2006 2007 2008 2009 11
Strong Order Book with Accelerating Recurring O&M Revenue S$mil 2000 EPC O&M 1,848 1500 1000 500 0 1,480 748 1,117 1,145 601 465 863 1,100* 435 435 30 166 254 335 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 * O&M orderbook includes the O&M for Tlemcen, which will be completed by 1H2010. 12
FY2009 Full Year Results Review Disclaimer This presentation has been prepared by Hyflux Ltd for the information of the attendees of this presentation. This 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. This document may not be used or relied upon by any party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of Hyflux Ltd. 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. 24 February 2010 13