2q09 & 1h09 results review -...
TRANSCRIPT
Sam OngGroup Deputy CEO & CFO
Cho Wee PengGroup EVP & CIO
2Q09 & 1H09 RESULTS REVIEW
6 August 2009
Agenda
• 2Q09 & 1H09 Financial Results Review
• Hyflux Water Business & Market Overview
• Updates on Key Projects
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2Q09 & 1H09 Financial Results
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S$ mln 2Q 09 2Q 08 +/-% 1H 09 1H 08 +/-%
Revenue 134.5 108.1 24% 222.7 197.7 13%
PBT 28.5 27.1 5% 35.4 32.7 8%
PATMI 25.9 22.6 15% 31.0 28.3 10%
Balanced Revenue & Profit Growth
Group revenue and profits increased in line with the execution of key municipal projects
Effective tax rate was lower due to tax incentives enjoyed by certain entities in the group
Key highlights
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MENA & China’s Municipal Driving Growth
With progressive EPC recognition of Tlemcen and Magtaa, MENA‘s 1H09 revenue of S$131 mil is accounted for 59% of the Group’s revenue.
Key highlights
Municipal sales continues to be key driver.
Industrial sales has dipped due in part to the economic slowdown in China, but has seen signs of business recovery.
Key highlights
Revenue by CountryS$mln S$mln
Revenue by Sector
192
China99 50%
87 44%
12 6%
131 59%
85 38%
7 3%
40 20%
157 80%
30 14%
192 86%
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S$ mln 2Q 09 2Q 08 +/-% 1H 09 1H 08 +/-%
Raw Materials & Consumables
72.5 55.6 30% 132.4 121.6 9%
Staff Costs 14.3 13.9 3% 27.3 24.2 13%
Depreciation & Amortisation 2.5 1.9 29% 4.9 4.0 22%
Other Exp 19.9 8.0 149% 24.7 9.8 151%
Finance Cost 2.0 1.8 11% 4.9 3.8 28%
Total Operating & Fin Exp 111.2 81.2 37% 194.2 163.4 19%
Expenses In Line With Sales Growth
Raw materials costs increased in line with increase in sales volume.
Staff costs increased in line with business growth, in particular in preparation for the execution of projects in MENA and increase in completion of O&M plants.
Other expenses increased due to higher project tender fees, professional, selling, travelling expenses and foreign exchange differences.
Key highlights
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Growth With A Healthy Balance Sheet
S$ mln 30 Jun 09 31 Mar 09 31 Dec 08
Equity 336 318 308
LT Assets 538 527 462
Current Liabilities 332 326 325
Net Current Assets 61 62 60
Net Gearing 0.60x 0.82x 0.54x
Equity increased due to net profit for 1H 09.
Long Term Assets increased in line with the progress of construction of water plants in China, and the additional investments in associates.
Net gearing held at a steady level of 0.6X.
Key highlights
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Growth With Positive Cash Flow
S$ mln 2Q 09 2Q08 1H 09 1H 08
CF Operations 76 17 25 49
CF Investing (6) (44) (38) (97)
CF Financing (21) 23 43 21
Net Cash Changes 49 (4) 30 (27)
Cash & Equivalents 120 94 120 94
Positive operational cash flow of S$76 million in 2Q 09.Cash flow position has improved over the previous corresponding periods with progressive payments from major projects.
Key highlights
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2Q 09 2Q 08 1H 09 1H 08
Gross Margin 48% 48% 42% 37%
Net Margin 20% 22% 14% 15%
Working Cap Days 41 132 49 168
Growth With Strong Profit & Cash Management
Margins held steady with improved working capital management.
Key highlights
Hyflux & Water Business Overview
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Accelerating Recurring O&M Revenues
435
435
863
1,145
952
30166
254 335
694
0
500
1000
1500
Dec-05 Dec-06 Dec-07 Dec-08 Jun-09
EPC O&MS$mil
465
601
1,117
1,4801,646
O&M orderbook has gone up to reflect the completion of several plants in China including the first phase of China’s Tianjin Dagang Desalination plant of 100,000 m3/day capacity
Key highlights
China
82%
SG/OTH
14%
MENA
4%
SG
26%
OTH
18%
China
56%
China
74%
SG
19%
OTH
7%
Note : Graph is not drawn to scale.
FY2007
FY2006 FY2005
Growing China In A Growing Pie
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China
82%
MENA
4% China
54%
MENA
40%
China
38%
MENA
59%Note : Graph is not drawn to scale.
FY 2008
1H 2009
FY 2007
Growing MENA In A Growing Pie
13
SG & OTH14%
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Hyflux SWRO Track Record > 2 million m3/day
POTENTIAL
POTENTIAL
Hyflux SWRO desalination experience is reaching 2.0 million m3 per day capacity.
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MENA SWRO Portfolio with Libya > 1.6 mil m3/day
Benghazi>400,000m3/day
Magtaa500,000m3/day
Tlemcen200,000m3/day
Tripoli East>500,000m3/day
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Hyflux Gaining in Seawater RO + UF Desalination
Source: 2009 Desalination Market Forecast, GWI
WithLibya
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It’s Possible : Membrane Momentum
Source: 2009 Desalination Market Forecast, GWI
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It’s Possible : Relative Growth in Desalination
Source: 2009 Desalination Market Forecast, GWI
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It’s Possible : Hyflux’s Position is Entrenched
Source: 2009 Desalination Market Forecast, GWI
Key Projects
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Tianjin Dagang, China
Tlemcen, Algeria
Tianjin Dagang, ChinaSeawater Desalination Plant
Capacity: 100,000 m3/dayFirst Phase
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Tianjin Dagang—We are Open For Business
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Tianjin Dagang—Largest Seawater UF Systems
The largest operating SeawaterUF KristalTM
pretreatment facility in the world.
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Tianjin Dagang—Welcoming Visitors & Partners
Tlemcen, Algeria
Seawater Desalination Plant
Capacity: 200,000 m3/day
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Tlemcen—A Plant is A Life’s Source
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Tlemcen—Largest Seawater RO Trains
The largest operating SeawaterROtreatment facility in the world.
A Sustainable Business Model Productivity & Growth
• Project delivery and cost management
• People development with the right aptitude and attitude
• Process technology and R&D collaborating with strategic partners and commercial institutions
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Momentum : New Markets & New Application
we make things happen.
Disclaimer
This presentation has been prepared by Hyflux Ltd for the information of the attendees of this presentation.
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