Hyflux Ltd 3Q10 Results Reviewinvestors.hyflux.com/newsroom/Hyflux_3Q2010AnalystSlides.pdfHyflux Ltd...
Transcript of Hyflux Ltd 3Q10 Results Reviewinvestors.hyflux.com/newsroom/Hyflux_3Q2010AnalystSlides.pdfHyflux Ltd...
Hyflux Ltd3Q10 Results Review
Sam OngGroup Deputy CEO & CFO
Cho Wee PengGroup EVP, Finance & CIO
4 November 2010
Agenda
• 3Q10 Financial Results Review
• Key Updates
• Business Outlook & Strategy
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3Q10 Financial Results Review3Q10 Financial Results Review
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S$ mln 3Q10 3Q09 % Change 9M10 9M09 % Change
Revenue 137.5 126.5 9 379.2 349.2 9
PBT 20.7 19.3 7 58.9 54.7 8
PATMI 19.0 18.1 5 52.7 49.1 7
Stable Profits
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Key highlights
• Group revenue and profit remained steady.
• The effective tax rate for 3Q10 was lower mainly due to tax exemptions and incentives enjoyed by certain entities in the Group.
Revenue Breakdown
Revenue by Country Revenue by Sector
200
250
300
350
400
269.9 (71%)
23.0 (6%)
222.8 (64%)
12.1 (3%)
MENA
SG/OTH
200
250
300
350
400
51.1 (13%)
2.3 (1%)
42.8 (12%)INDUSTRIAL
OTHERS
S$ mil S$ mil
1.4 (1%)
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0
50
100
150
200
9M10 9M09
CHINA 86.3 (23%) 114.3 (33%)
Key highlights Key highlights
0
50
100
150
200
9M10 9M09
MUNICIPAL325.8 (86%) 305.0 (87%)
• MENA continues to be the major contributor with the progressive EPC recognition of Magtaa.
• Increase in contributions from Singapore is due to progress in the Tembusu desalination and Jurong MBR projects.
• Municipal sales remains the key driver with the execution of MENA projects.
• Industrial sales improved as projects previously put on hold by clients were resumed.
Overall Expenses remain StableS$ mln 3Q10 3Q09 % Change 9M10 9M09 % Change
Raw Materials & Consumables 74.2 81.7 (9) 210.7 214.1 (2)
Staff Costs 15.6 12.6 24 41.3 39.9 3
Depreciation & Amortisation 4.9 3.0 64 11.6 7.9 48
Other Expenses 21.7 11.4 90 51.4 36.1 42
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Finance Costs 4.6 1.7 171 12.6 6.6 90
Total Operating & Fin Expenses
121.0 110.4 10 327.6 304.6 8
Key highlights
• Decrease in raw materials and consumables used and subcontractors’ costs was due to cost management measures.
• Increase in staff costs was in line with Group’s expansion plan.
• Depreciation and amortisation rose in line with property, plant and equipment.
• Finance costs increased because of higher bank borrowings to support the Group’s activities.
• Other expenses increased due to higher project-related professional fees and foreign exchange loss resulting from the weakening of the US dollar.
Balance Sheet remains HealthyS$ mln 30 Sep 10 30 June 10 31 Dec 09
Equity 498 498 393
LT Assets 524 558 523
LT Liabilities 418 401 361
Current Liabilities 360 335 318
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Net Current Assets 392 341 231
Net Gearing 0.52x 0.49x 0.59x
Key highlights
• Rise in Shareholders’ Equity was largely attributable to changes in share capital arising from shares issued under the Warrant Subscription Agreement with Istithmar. Ordinary shares in issue rose to 570,659,410 at 30 Sep 2010 from 528,365,360 at 1 Jan 2010.
• Long-term Liabilities rose mainly due to increased bank borrowings to support the Group’s expansion and investment activities.
• Net gearing remains steady at 0.52x.
Improving Cash Flow
S$ mln 3Q10 3Q09 9M10 9M09
CF Operations 9 (30) (33) (5)
CF Investing (6) (26) (38) (64)
CF Financing 134 66 224 109
Net Cash Changes 137 10 153 40
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Cash & Equivalents 308 130 308 130
Key highlights
• YTD cash position has improved over the corresponding period with progressive payments received from projects and proceeds from the issuance of new shares under the Warrant Subscription Agreement.
• Cash generated from financing activities was mainly borrowing proceeds to fund the Group’s expansion and investments.
Stable Overall Margins
S$ mln 3Q10 3Q09 9M10 9M09
Gross Margin 48% 36% 45% 40%
Net Margin 14% 14% 14% 14%
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Key highlights
• Net margins held steady.
Key UpdatesKey Updates
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Key Updates
• Proposed bonus share issue– One bonus share for every two existing ordinary shares
– Bonus issue is subject to approval of SGX
• HWT delisting• HWT delisting– Exit offer becomes unconditional
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HWT Delisting – Key Events
Event Date Outcome
HWT EGM 20 October 2010 99.54% (146,939,602 units) voted in favour of the delisting resolution
Exit Offer Turns Unconditional 29 October 2010 75.97% accepted the exit offer
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Exit Offer Turns Unconditional 29 October 2010 75.97% accepted the exit offer
Revised Closing Date for Exit Offer 12 November 2010(or such later date as may
be announced)
HWT shares will be suspended from trading on the next trading day of the SGX-ST
• Galaxy NewSpring will acquire all assets in HWT’s portfolio and integrate them with four other assets (Jiangxi Leping WTP, Anhui Mingguang WTP, Hunan Taoyuan WTP, Liaoyang Gongchangling WTP).
Business Outlook & StrategyBusiness Outlook & Strategy
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Business Outlook
• Pace of economic recovery remains uneven across the globe
• Continued fluctuations of the USD and RMB will have an impact on the group’s financial performance as its an impact on the group’s financial performance as its revenues are dominated in the 2 currencies
• Outlook for global water industry continues to be robust; water infrastructure projects expected to accelerate as economic development exacerbates water shortages
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Building Blocks for Growth
Capturing growth opportunities with robust financial platform
Focusing on key growth markets: North Africa, China,
Middle East, India, Southeast Asia
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Middle East, India, Southeast Asia
Investing in Technology Development
Strengthening Human Capital
WATER SOLUTIONS THAT
IMPACT LIVES
Disclaimer
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