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11 Nov 2016

Q3 2016 Results Presentation

Presentation Outline Presentation Outline

Presentation Outline

Financial Review Business Review - Ship Repair, Ship Building & Marine Engineering - Dry Bulk Shipping Prospects

Financial Review

Profit & Loss

S$ million Q3

2016 Q3

2015 %

Change YTD 2016

YTD 2015

% Change

Sales 662.3 949.6 (30) 2,147.6 2,794.3 (23)

Gross profit/(loss) 49.3 (10.7) NM 150.1 121.3 24

Loss before Tax (302.0) (168.4) 79 (375.9) (172.9) 117

Net loss (Attributable to equity holders)

(102.3) (82.1) 25 (153.5) (86.1) 78

Diluted EPS (cents) (4.57) (3.67) 25 (6.86) (3.85) 78

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Turnover

Shipyard Operations $654.7m

98.8% Dry Bulk Shipping

& Others $7.7m

1.2%

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Turnover Review – Q3 2016

• -30.2% to $662.3 million

• Decrease in shipyard and shipping revenue

Group turnover

• 98.8% of turnover

• -30.3%

• Lower revenue contribution from ship repair, ship building and marine engineering

Ship repair, ship building and marine engineering

• 1.2% of turnover

• -21.0%

• Lower short-term charter rates

Dry bulk shipping & Others

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P & L Highlights

Gross profit

• $49.3m

• Profits from shipyard operations, partially offset by losses in shipping operations on account of lower charter rates

Other income

• +2.4%

• Higher government grants and sundry income partially offset by lower sale value of scrap materials and lower interest income

Interest expense

• +26.5%

• Higher bank borrowings used to fund shipyard operations

Net loss attributable

• -$102.3m

• Due to losses in shipyard and shipping operations

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Net Profit Trend

24.3 64.2

160.5 205.4

336.6 302.6

110.1

248.8

139.7 105.7

30.6 20.9

-570.0

-86.1 -153.5

-700

-600

-500

-400

-300

-200

-100

0

100

200

300

400

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 YTD2015

YTD2016

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Diluted Earnings per share (cents)

1.30 2.95

7.33 9.27

15.02 13.50

4.92

11.11

6.24 4.72

1.37 0.93

-25.45

-3.85

-6.86

-30

-25

-20

-15

-10

-5

0

5

10

15

20

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY 2015 YTD2015

YTD2016

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Balance Sheet Highlights

S$ million 30 Sep 2016 31 Dec 2015

Cash & cash equivalents 1,592.3 1,570.9

Trade & other receivables 5,216.5 5,202.2

Inventories 897.3 780.3

Construction contract WIP 87.6 199.1

Property, plant & equipment 2,082.4 2,307.3

Trade & other payables 2,315.5 2,417.5

Bank Borrowings 6,941.8 6,532.8

Total equity 956.9 1,340.0

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Cash Flow Highlights

S$ million Q3 2016 Q3 2015

Cash flow (used in) / provided by:

- Operating activities (82.9) (372.8)

- Investing activities (0.7) (30.9)

- Financing activities (463.0) 382.5

Net change in C&CE (546.6) (21.2)

Opening C&CE 2,106.5 1,460.7

Effects of currency translation 30.9 61.2

Closing C&CE 1,590.8 1,500.8

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Business Review

Types of Vessels Repaired – Q3 2016

Bulk Carriers 61% Containers

Ships 11%

Others 14%

Chemical Ships 9%

Tankers 5%

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Shipyard Revenue by Type of Jobs – Q3 2016

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Ship Conversion 3%

Ship Repair 15%

Marine Engg 61%

Ship Building 21%

Baltic Dry Index (BDI)

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Steel Price

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Current Capability

Dry Dock dwt

Floating Dock dwt

Berth km

Workshop & Storage

sq m

Dalian 80,000

80,000 180,000 300,000

14 3.721km

12 173,652 sq m

Nantong 150,000

80,000

3 0.772km

12 34,788 sq.m

Qidong 200,000 5

1.2 km

7 127,485 sq m

Shanghai 35,000 80,000

2 0.28 km

11 4,759 sq m

Zhoushan 80,000

400,000 230,000

7 1.742 km

13 253,663 sq m

Guangdong 80,000

150,000

6 1.19 km

11 143,300 sq m

Total 990,000 dwt 1,135,000 dwt 37

8.91 km

66 737,648 sq m

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Order Book

7.0 7.4

8.1

7.3 7.0

6.8

8.1

5.6 5.9

6.8

6.1 6.1 5.9

7.0

6.4 6.1

5.8 5.9 5.7

6.1 6.4

6.7

7.2

7.8 7.6

8.1

8.9

8.4 8.1 8.1

7.9 8.0 7.6 7.6

6.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Q1

20

08

Q2

Q3

Q4

Q1

20

09

Q2 Q3

Q4

Q1

20

10

Q2 Q3

Q4

Q1

20

11

Q2 Q3

Q4

Q1

20

12

Q2 Q3

Q4

Q1

20

13 Q2 Q3

Q4

Q1

20

14 Q2 Q3

Q4

Q1

20

15

Q2 Q3

Q4

Q1

20

16

Q2 Q3

US$ billion

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Ship Building Orders as at 30 Sep 2016

14

• Container Vessels

12

• Bulk carriers

• 57,000 dwt

• 64,000 dwt

• 82,000 dwt

5

• Oil tankers

2

• Module Carriers

19

1

• Salvage lifting Vessel

1

• Cargo & Training Ship

1

• LNG Carrier

20

Ship Building Orders as at 30 Sep 2016

Offshore Orders as at 30 Sep 2016

1

• Self-Elevating Workover Unit

1

• Trailing Suction Hopper Dredger

21

Offshore Orders as at 30 Sep 2016

22

Sevan 650 Drilling Unit

1 unit

FPSO

1 unit

Shuttle Tanker

1 unit

23

Semi-submersible Tender Assist

Drilling Rig

1 unit

DP3 Accommodation

Barge

1 unit

Research Vessel

1 unit

• Semi Submersible Accommodation Vessel

1 unit

Offshore Orders as at 30 Sep 2016

Offshore Orders as at 30 Sep 2016

24

Semi Submersible Accommodation Rig

2 units

Cargo Transfer Vessel

2 units

Subsea Supply Vessel

4 units

Offshore Orders as at 30 Sep 2016

25

Emergency Response/Rescue/

Field Support Vessel

4 units

Jack-up Rig

5 units

Platform Supply Vessel

15 units

Offshore Modules

36 units

Deliveries 1 Jan 2016 to 30 Sep 2016

Shipbuilding

• 4 Oil Tankers

• 3 Livestock Carriers

• 2 Module Carriers

• 1 Salvage Lifting Vessel

• 1 Emergency Response Rescue Vessel

Offshore Marine • 2 Jack Up Drilling Rig Vessels

• 2 Platform Supply Vessels

• 1 Semi Submersible Accommodation Vessel

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Prospects

Prospects

2016 remains very difficult and challenging

Difficult and challenging business

and operating conditions to persist

Order Book of US$6.8 billion with

progressive deliveries up to 2019

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Disclaimer

This presentation was prepared for informational purposes only and must be viewed in conjunction with the oral presentation provided by us. It does not have any regard to the specific investment objectives, financial situation or individual needs of any particular person receiving this presentation. Investors should seek advice from a professional adviser regarding their investment decisions. This presentation is not and does not constitute or form part of any offer, solicitation, invitation, advice or recommendation to sell, purchase or subscribe for any securities and no part of it shall form the basis or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation shall not be used or relied upon by any other person for whatever purposes and shall not be reproduced, disseminated or quoted without our prior written consent.

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