Boustead Singapore Limited / Boustead Projects Limited Joint FY2017 - - PowerPoint PPT Presentation

boustead singapore limited
SMART_READER_LITE
LIVE PREVIEW

Boustead Singapore Limited / Boustead Projects Limited Joint FY2017 - - PowerPoint PPT Presentation

Boustead Singapore Limited / Boustead Projects Limited Joint FY2017 Financial Results Presentation 23 MAY 2017 Disclaimer This presentation contains certain statements that are not statements of historical fact such as forward-looking


slide-1
SLIDE 1

Boustead Singapore Limited / Boustead Projects Limited

Joint FY2017 Financial Results Presentation 23 MAY 2017

slide-2
SLIDE 2

Disclaimer

This presentation contains certain statements that are not statements of historical fact such as forward-looking statements. These statements are based on current expectations, projections and assumptions about future events. Although Boustead Singapore Limited and Boustead Projects Limited believe that these expectations, projections and assumptions are reasonable, these statements are subject to risks (whether known or unknown), uncertainties and assumptions about our companies and business operations such as the general economic, business and political conditions in Singapore and globally; currency fluctuations between the Singapore dollar and other currencies; governmental, statutory, regulatory or administrative initiatives affecting our businesses; industry trends; future levels and composition of our assets and liabilities; future profitability of our operations; competition; changes in Singapore tax laws

  • r similar laws and regulations; and changes in or the failure to comply with government

regulations including exchange control regulations, if any. You are advised not to place undue reliance on these statements as the forward-looking events referred to in this presentation may differ materially or not occur due to these risks, uncertainties and assumptions. Investors should assume that the information in this presentation is accurate only as of the date it is issued. Boustead Singapore Limited and Boustead Projects Limited have no

  • bligations to update or revise any statements, whether as a result of new information, future

events or otherwise, except as required by law.

slide-3
SLIDE 3

Presentation Agenda

▪ Overview ▪ Boustead Projects Financial Review ▪ Boustead Group Financial Review ▪ Division Performance Review ▪ Questions & Answers

slide-4
SLIDE 4

Overview

slide-5
SLIDE 5

Introducing Boustead

Engineering the world of the future ▪ Established in 1828, Boustead Singapore is a progressive global infrastructure-related engineering services and geo-spatial technology group ▪ Singapore’s oldest continuous business

OVERVIEW

Energy-Related Engineering Real Estate Solutions (Boustead Projects) Geo-Spatial Technology

slide-6
SLIDE 6

Our Global Network

Canada USA Venezuela Brazil Argentina Australia South Korea Singapore Malaysia Indonesia Vietnam Thailand India UAE Saudi Arabia Turkey Italy Spain UK China

OVERVIEW

slide-7
SLIDE 7

Our Global Footprint

OVERVIEW

slide-8
SLIDE 8

Our Global Footprint

ASIA & OCEANIA East Asia China* Japan Macau South Korea* Taiwan South East Asia Brunei Indonesia* Malaysia* Myanmar Philippines Singapore* Thailand* Timor-Leste Vietnam* South Asia Bangladesh India* Maldives Pakistan Sri Lanka South West Asia Bahrain Cyprus Iraq Jordan Kuwait Oman Qatar Saudi Arabia* Turkey* UAE* Central Asia Azerbaijan Kazakhstan Turkmenistan Australia & Oceania Australia* New Caledonia New Zealand Papua New Guinea EUROPE Eastern Europe Hungary Poland Russia Slovakia Ukraine Northern Europe England* Finland Ireland Isle of Man Lithuania Norway Scotland Wales Southern Europe Greece Italy* Spain* Western Europe Austria Belgium Germany Netherlands Switzerland AFRICA East Africa Tanzania North Africa Algeria Egypt Libya Tunisia Middle Africa Angola Equatorial Guinea West Africa Cote d’Ivoire Ghana Nigeria THE AMERICAS North America Canada* USA* Latin America & Caribbean Argentina* Bolivia Brazil* Chile Dominican Republic Mexico Netherlands Antilles Peru Venezuela* *Regional/local offices

OVERVIEW

slide-9
SLIDE 9

Group Business Model

▪ Undertaking only high value-added activities across value chain

OVERVIEW

ENGINEERING FABRICATION DELIVERY

In-house expertise for high value-added: ▪Design ▪Process engineering ▪Detailed engineering ▪Value engineering Outsource low value-added: ▪Fabrication ▪Manufacturing ▪Modularisation In-house expertise for high value-added: ▪Installation ▪Commissioning ▪Training

VALUE CHAIN OF ACTIVITIES

PROJECT MANAGEMENT

In-house expertise for high value-added: ▪Project management, procurement and quality supervision

slide-10
SLIDE 10

BP Group Financial Review

Boustead Projects Limited (BP)

slide-11
SLIDE 11

BP GROUP FINANCIAL REVIEW

BP Group Financial Results

FY2017 FY2016 Chg (%) Revenue S$228.3m S$255.5m

  • 11

Gross profit S$58.5m S$59.0m

  • 1

Gross margin 26% 23% Profit before income tax (“PBT”) S$44.9m S$29.7m +51 PBT margin 20% 12% Total profit S$36.2m S$22.9m +59 Adjusted total profit* S$24.8m S$23.0m +8 Earnings per share 11.3cts 7.1cts +59 Net asset value per share 71.7cts 60.6cts +18

* Adjusted for other gains and losses after income tax for comparative review

slide-12
SLIDE 12

▪ Both design-and-build and leasing businesses contributed lower revenue

BP GROUP FINANCIAL REVIEW

BP Group Revenue

  • 11%

y-o-y

slide-13
SLIDE 13

▪ Boosted by better design-and-build performance and

  • ther gains

BP GROUP FINANCIAL REVIEW

BP Group PBT

+51% y-o-y

slide-14
SLIDE 14

▪ Boosted by other gains

BP GROUP FINANCIAL REVIEW

BP Group Total Profit

+59% y-o-y

slide-15
SLIDE 15

▪ Continued strong operating cash inflows partially

  • ffset by investing and financing cash outflows

BP GROUP FINANCIAL REVIEW

BP Group Cash Flow

slide-16
SLIDE 16

▪ Higher ROE achieved due to better net profit

BP GROUP FINANCIAL REVIEW

BP Group Return on Shareholders’ Equity

slide-17
SLIDE 17

▪ Tracking net profit

BP GROUP FINANCIAL REVIEW

BP Group Earnings per Share

+59% y-o-y

slide-18
SLIDE 18

▪ Rebuilding NAV per share following step-down effect

  • f S$80m demerger dividend paid by BP to Boustead

Singapore in FY2016

BP GROUP FINANCIAL REVIEW

BP Group Net Asset Value per Share

+18% y-o-y

slide-19
SLIDE 19

BP GROUP FINANCIAL REVIEW

BP Group Proposed Maiden Dividend Since Listing

FY2017 FY2016 Ordinary dividend 1.5cts

  • Special dividend

1.0ct

  • Total dividend

2.5cts

slide-20
SLIDE 20

Group Financial Review

slide-21
SLIDE 21

Group Financial Results

FY2017 FY2016 Chg (%) Revenue S$433.8m S$486.7m

  • 11

Gross profit S$143.6m S$150.6m

  • 5

Gross margin 33% 31% PBT S$67.7m S$56.5m +20 PBT margin 16% 12% Profit attributable to equity holders

  • f the Company (“net profit”)

S$33.3m S$28.2m +18 Adjusted net profit* S$25.0m S$27.6m

  • 9

Earnings per share 6.4cts 5.4cts +19 Net asset value per share 61.7cts 58.3cts +6

*Adjusted for other gains and losses net of non-controlling interests for comparative review

GROUP FINANCIAL REVIEW

slide-22
SLIDE 22

Group Revenue Mix by Division

GROUP FINANCIAL REVIEW

FY’16: 21% FY’16: 53% FY’16: 26%

slide-23
SLIDE 23

Group Revenue

GROUP FINANCIAL REVIEW

▪ Impacted by depressed global oil & gas market and challenging Singapore industrial real estate market

  • 11%

y-o-y

slide-24
SLIDE 24

Group Net Profit

▪ All divisions profitable despite challenges ▪ Boosted by one-off gains at BP

GROUP FINANCIAL REVIEW

+18% y-o-y

slide-25
SLIDE 25

Group Net Cash Position

▪ Healthy net cash position

GROUP FINANCIAL REVIEW

+14% y-o-y

slide-26
SLIDE 26

Group Cash Flow

▪ Continued strong operating cash inflows partially

  • ffset by investing and financing cash outflows

GROUP FINANCIAL REVIEW

slide-27
SLIDE 27

Return on Shareholders’ Equity

▪ Higher ROE achieved due to better net profit

GROUP FINANCIAL REVIEW

slide-28
SLIDE 28

Earnings per Share

▪ Tracking net profit

GROUP FINANCIAL REVIEW

+19% y-o-y

slide-29
SLIDE 29

Net Asset Value per Share

▪ Rebuilding NAV per share following step-down effect

  • f demerger of BP in FY2016

GROUP FINANCIAL REVIEW

+6% y-o-y

slide-30
SLIDE 30

Group Orders Secured

▪ Lower orders due to challenging macro economic and industry-specific environments

GROUP FINANCIAL REVIEW

  • 37%

y-o-y

slide-31
SLIDE 31

Group Dividend

GROUP FINANCIAL REVIEW

FY2017 FY2016 Interim dividend (paid) 0.5ct 1.0ct Final dividend (proposed) 1.5cts 2.0cts Total ordinary dividend 2.0cts 3.0cts Dividend in specie of Boustead Projects’ shares (distributed)

  • 16.2cts

Total dividend 2.0cts 19.2cts

slide-32
SLIDE 32

Group Dividend

▪ Payout ratio of 31%

GROUP FINANCIAL REVIEW

slide-33
SLIDE 33

Division Performance Review

Energy-Related Engineering

slide-34
SLIDE 34

DIVISION FINANCIAL REVIEW

▪ Continued decline in revenue and profit

  • Adversely impacted by third year of recession in

global oil & gas industries

  • Oil & gas businesses still profitable after excluding

foreign exchange gains

  • Oil & gas businesses restructured internally and

with supply chain to address difficult operating environment

Energy-Related Engineering

Division Revenue, PBT & Orders Secured FY2017 (S$) FY2016 (S$) Chg (%) Revenue 96.5m 128.0m

  • 25

PBT 4.2m 9.1m

  • 54

Orders secured 40m 95m

  • 58
slide-35
SLIDE 35

DIVISION FINANCIAL REVIEW

▪ Focusing on cost management

  • Current order book backlog: S$79m
  • Oil & gas outlook
  • Uncertainty in global crude and natural gas prices
  • Historically high global crude inventories
  • Potential M&A opportunities

Energy-Related Engineering

Prospects

slide-36
SLIDE 36

Division Performance Review

Real Estate Solutions

slide-37
SLIDE 37

DIVISION FINANCIAL REVIEW

Real Estate Solutions

Division Revenue, PBT & Orders Secured FY2017 (S$) FY2016 (S$) Chg (%) Revenue 228.3m 255.5m

  • 11

PBT 44.9m 29.7m +51 Orders secured 140m 189m

  • 26

▪ Revenue decrease

  • Challenging industrial real estate landscape

▪ PBT increase

  • Better design-and-build performance and one-off

gains

slide-38
SLIDE 38

DIVISION FINANCIAL REVIEW

Real Estate Solutions

Prospects

▪ Leveraging on strategic platforms for medium to long-term growth

  • Current order book backlog: S$146m
  • Industrial real estate outlook:
  • Challenging operating environment in Singapore
  • Capturing opportunities in high value industries
  • Expanding business in overseas markets of

Malaysia, Vietnam, China and Indonesia through strategic partnerships with reputable partners, investments and M&A

slide-39
SLIDE 39

Division Performance Review

Geo-Spatial Technology

slide-40
SLIDE 40

DIVISION FINANCIAL REVIEW

Geo-Spatial Technology

Division Revenue & PBT

▪ Increase in revenue and profit

  • Firm demand across Australia and South East

Asia

  • Higher PBT on revenue growth and better gross

margins FY2017 (S$) FY2016 (S$) Chg (%) Revenue 108.3m 103.0m +5 PBT 21.9m 19.9m +10

slide-41
SLIDE 41

DIVISION FINANCIAL REVIEW

Geo-Spatial Technology

Prospects

▪ Steady prospects

  • Sustained demand from government agencies
  • Riding mega trends in big data mapping analysis

and smart cities

  • Continued expansion of workforce may affect

margins

  • Currency headwinds may affect margins
slide-42
SLIDE 42

Thank You

slide-43
SLIDE 43

Questions & Answers