2001 Performance Review 2001 Performance Review February 20, 2002 February 20, 2002 1
DISCLAIMER DISCLAIMER This presentation is not an offer of securities for sale in the This presentation is not an offer of securities for sale in the United United States, securities may not be offered or sold in the United States es States, securities may not be offered or sold in the United Stat absent registration or an exemption from registration, and any public ublic absent registration or an exemption from registration, and any p offering of securities to be made in the United States will be made ade offering of securities to be made in the United States will be m by means of a prospectus that may be obtained from the issuer and d by means of a prospectus that may be obtained from the issuer an that will contain detailed information about the company and that will contain detailed information about the company and management, as well as financial statements. “ “United States United States” ” management, as well as financial statements. means the United States of America, its territories and possessions, ons, means the United States of America, its territories and possessi any state of the United States, and the District of Columbia. any state of the United States, and the District of Columbia. 2
SCOPE SCOPE 2001 Results 2001 Results • Financial Performance Financial Performance • • Key Business Review Key Business Review • • Outlook and Management Target Outlook and Management Target • 3
2001 PERFORMANCE AT A GLANCE 2001 PERFORMANCE AT A GLANCE PATMI $176m PATMI $176m Earnings growth over FY00 51% Earnings growth over FY00 51% Earnings growth over FY00 excl. EI 30% Earnings growth over FY00 excl. EI 30% Key Business earnings growth over FY00 55% Key Business earnings growth over FY00 55% ROE 19% ROE 19% Group Orderbook excl. long- -term contracts term contracts $3.7bn Group Orderbook excl. long $3.7bn 4
GROUP PERFORMANCE GROUP PERFORMANCE PATMI excl. EI PATMI excl. EI $m $m 200 Av. CAGR 23% 150 100 50 0 1998 1999 2000 2001 5
GROUP PERFORMANCE GROUP PERFORMANCE ROE excl. EI (%) ROE excl. EI (%) 20 16 ROE 12 12 target 12% 10 6 0 1998 1999 2000 2001 6
M&As IN 2001 M&As IN 2001 Building the SembCorp Industries of tomorrow Building the SembCorp Industries of tomorrow SBU SBU M&A Activity M&A Activity The Result The Result Utilities Utilities � Phu Phu My 3 Power Plant My 3 Power Plant � First mover advantage First mover advantage � � in Vietnam (Vietnam) (Vietnam) in Vietnam Qianan SembCorp Entry into China’ ’s s � Qianan SembCorp � Entry into China � � Cogeneration Co. (China) power market Cogeneration Co. (China) power market Additional 20% stake in SembCogen now a now a � Additional 20% stake in � SembCogen � � SembCogen 70%- -owned owned SembCogen 70% subsidiary subsidiary E&C Acquired Simon- -Carves Carves Expertise in up xpertise in up- - E&C � Acquired Simon � E � � stream process stream process engineering engineering Extend use of land � Extend use of land Invested in 40% stake of � Invested in 40% stake of � � reclamation reclamation HydraMac HydraMac technology technology 7
M&As IN 2001 M&As IN 2001 Building the SembCorp Industries of tomorrow Building the SembCorp Industries of tomorrow SBU M&A Activity The Result SBU M&A Activity The Result Environmental Acquired 40% stake in � Now have 100% of medical Now have 100% of medical Environmental � Acquired 40% stake in � � Engineering Engineering SembSITA SembSITA waste market share and 28% waste market share and 28% of ICW market of ICW market Invested in 60% stake of � Future revenue stream from Future revenue stream from � Invested in 60% stake of � � SembVISY Recycling SembVISY Recycling post- post -processing plant processing plant Logistics SembCorp Logistics Logistics � Entry into Malaysian supply Entry into Malaysian supply Logistics � SembCorp � � (Malaysia) chain management market (Malaysia) chain management market Partnership with Goodpack � Exclusive global use of Exclusive global use of � Partnership with Goodpack � � patented intermediate bulk patented intermediate bulk containers containers � Entry into supply chain Entry into supply chain SembCorp Logistics � SembCorp Logistics � � management in Australia & management in Australia & (Australia) (Australia) New Zealand New Zealand � Entry into wine logistics Entry into wine logistics JV with Zenecon � JV with Zenecon � � 8
M&As IN 2001 M&As IN 2001 Building the SembCorp Industries of tomorrow Building the SembCorp Industries of tomorrow SBU M&A Activity The Result SBU M&A Activity The Result Marine PPL Shipyard Boosted rig building Marine � PPL Shipyard � Boosted rig building � � Engineering capabilities Engineering capabilities � Mau Mauà à Jurong Jurong Tap into offshore and � Tap into offshore and � � conversion markets in Gulf Gulf conversion markets in of Mexico and West Africa of Mexico and West Africa Expansion into growing � Expansion into growing Dalian Cosco Marine � Dalian Cosco Marine � � Chinese market Chinese market Engineering Co. Engineering Co. Total investments committed since 2001: $250m Total investments committed since 2001: $250m 9
DIVESTMENTS IN 2001 DIVESTMENTS IN 2001 Despite the poor economy, we made several divestments: Despite the poor economy, we made several divestments: $M $M Marine Services Business 205.6 Marine Services Business 205.6 Other Divestments 48.9 Other Divestments 48.9 Permasteelisa Pacific Holdings Permasteelisa Pacific Holdings 12.6 12.6 Singapore- -Suzhou Industrial Holdings Suzhou Industrial Holdings 9.8 Singapore 9.8 Asia Internet Holding 8.4 Asia Internet Holding 8.4 Indo- -Sembawang Sembawang- -Nippon Glass Nippon Glass 8.1 Indo 8.1 APLS- -Bok Seng Logistics Bok Seng Logistics 3.0 APLS 3.0 Wuxi Hitachi Maxell 3.0 Wuxi Hitachi Maxell 3.0 Others 4.0 Others 4.0 254.5 254.5 To date, over $1.3 billion of capital reallocated To date, over $1.3 billion of capital reallocated 10
OUR MANAGEMENT OUR MANAGEMENT PHILOSOPHIES SINCE 1998 PHILOSOPHIES SINCE 1998 • Retain businesses with engineering Retain businesses with engineering • and technology content and technology content • Regional leadership with global reach Regional leadership with global reach • – No.1 or 2 in Asia (ex No.1 or 2 in Asia (ex- -Japan), or exit Japan), or exit – the business the business • Strong financial discipline: Net income, Strong financial discipline: Net income, • ROE > 12%, EVA enhancing – – to give to give ROE > 12%, EVA enhancing superior returns over industry peers superior returns over industry peers 11
THREE YEARS ON THREE YEARS ON • Focus achieved with 5 Key Businesses. Focus achieved with 5 Key Businesses. • Divestments unlocked $1.3bn in value Divestments unlocked $1.3bn in value • Logistics and Marine in global league. Logistics and Marine in global league. • Utilities, E&C, EE strong in Asia (ex- - Utilities, E&C, EE strong in Asia (ex Japan). M&A strategy bearing fruit Japan). M&A strategy bearing fruit • Consistent profit growth. ROE target Consistent profit growth. ROE target • exceeded. EVA down due to growth exceeded. EVA down due to growth phase phase 12
FINANCIAL REVIEW FINANCIAL REVIEW 13
PROFIT & LOSS PROFIT & LOSS $M $M FY01 FY01 FY00 FY00 % % Turnover 3,225.2 2,894.9 11 Turnover 3,225.2 2,894.9 11 Profit attributable to shareholders 176.1 116.6 51 Profit attributable to shareholders 176.1 116.6 51 Profit attributable to shareholders 151.6 116.4 30 Profit attributable to shareholders 151.6 116.4 30 (excluding exceptional items) (excluding exceptional items) Profit before tax 340.3 250.0 36 Profit before tax 340.3 250.0 36 EBIT 335.4 299.6 12 EBIT 335.4 299.6 12 EBITDA 484.2 437.6 11 EBITDA 484.2 437.6 11 14
CONTRIBUTION TO TURNOVER CONTRIBUTION TO TURNOVER (%) – – by businesses by businesses (%) In Devt. & Marine In Devt. & Corporate Marine Engrg Corporate Engrg 19 26 26 24 Enviro Enviro 2 4 19 E&C Engrg Engrg 22 15 15 E&C Logistics 17 11 Logistics Utilities Utilities FY01 FY01 FY00 FY00 15
CONTRIBUTION TO TURNOVER CONTRIBUTION TO TURNOVER (%) – – by geographical areas by geographical areas (%) Rest of Rest of Asia Asia 18 18 Others Others 4 7 17 Europe 59 61 16 Europe Singapore Singapore FY00 FY00 FY01 FY01 16
EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS FY01 ($M) Gain / (loss) on disposals / dilution of interest in investments and business 111.7 Impairment of assets and investments (33.4) Others (35.5) Exceptional Items before tax and minority interest 42.8 Less: Tax and minority interest (18.3) Net Exceptional Items 24.5 17
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