FORWARD-LOOKING STATEMENT
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The presentation contains forward-looking statements which are based on current expectations, projections and assumptions about
future events. Although Hyflux believes that these expectations, projections and assumptions are reasonable, these forward-looking
statements are subject to risks, uncertainties and assumptions about Hyflux and its business operations that could cause actual results
to differ materially from those expressed or implied by these forward-looking statements. Such risks include industry and economic
conditions; currency fluctuations between the Singapore dollar and other currencies; governmental, statutory, tax, public policy and
regulatory changes; and the continued availability of financing in the amounts and the terms necessary to support future business.
Investors are cautioned not to place undue reliance on these forward-looking statements which are based on current views of Hyflux’s
management on future events.
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Disclaimer
Slide 3
• Founded in 1989 by Ms Olivia Lum, Executive Chairman & Group CEO
• Headquartered in Singapore and listed on the Singapore Stock Exchange since 2001
• Close to 2,400 employees globally
• More than 1,300 membrane-based plants in over 400 locations worldwide
• Proprietary membrane technology for water treatment, including seawater desalination
• Competencies cover the full value chain from R&D, membrane manufacturing, process engineering, to EPC and O&M
Slide 5
About Hyflux Delivering sustainable solutions for a better tomorrow
Desalination Water Recycling
Wastewater Treatment
Water Treatment
More than 1.7 mil m3/day Owned SWRO Capacity
Slide 7
Power Waste-to-Energy
3,600 tonnes per day Incineration Capacity*
868 MW Power Generation Capacity*
Global Leader in Sustainable SolutionsFocusing on water and energy
* When fully completed
Slide 8
Tianjin Dagang SWRO, China100,000 m3/day
SingSpring SWRO, Singapore 136,380 m3/day
Tuaspring IWPP, Singapore318,500 m3/day & 411 MW
Magtaa SWRO, Algeria500,000 m3/day
Qurayyat IWP, Oman200,000 m3/day TuasOne WTE, Singapore
3,600 tonnes/day & 120 MW
Ain Sokhna IWPP, Egypt150,000 m3/day & 457 MW
Salalah SWRO, Oman 68,000 m3/day
Key Desalination and Power Projects
Souk Tleta SWRO, Algeria 200,000 m3/day
Slide 9
Zunyi WWTP, China150,000 m3/day
Jurong MBR, Singapore68,000 m3/day
Bedok & Seletar NEWater, Singapore32,000 m3/day & 24,000 m3/day
Key Wastewater Treatment and Recycling Projects
Beetham WRP, Trinidad 50,000 m3/day
Langfang WWTP, China80,000 m3/day
Surat WRP, India40,000 m3/day
Slide 10
Among World’s Top Desalination EPC Suppliers Ranked one of world’s top desalination plant suppliers by capacity
Top 20 Desalination Plant Suppliers by Capacity, 2006 - 2016
GE
Doosan
IDE
Impregilo (Fisia)
Acciona
Abengoa
Cadagua
Wetico
Biwater
Aquatech Intl
Metito
Aqualia
GS Inima
Hutchinson
H2O Innovation
Sadyt
Hyflux
Veolia
Suez Environnement
Tedagua
Source: GWI Desalination Markets Report, 2016
Slide 11
Ranked First by BOO/BOT Desalination Capacity Biggest by market share for projects >50,000 m3/day
IDE Technologies
Abengoa
GE Water
QEWC
Mekorot D&E
Hutchison Water
Sembcorp Utilities
Housing & Construction
Inima
Algerian Energy Company
Malakoff
Thiess
Poseidon Resources
Veolia Environnement
Al-Kharafi Group
Keppel Seghers
Suez Environnement
Macquarie Capital
Sacyr Vellehermoso SA
Hyflux
Source: DesalData
Slide 12
Xinjiang
Inner Mongolia
Tibet
Qinghai
Gansu
Sichuan
Yunnan
Guizhou
ChongqingHubei
Guangxi
Guangdong
Hunan
Jiangxi
Fujian
Zhejiang
Anhui
Jiangsu
ShandongNingxia
Shaanxi
Shanxi
Henan
Liaoning
Hebei
BeijingTianjin
Hainan
Taiwan– Tiantai WWTP (Phase 1 & 2)
Zhejiang
– Taizhou WWTP
– Dafeng WTP
– Yangzhou WWTP (Phase 1 & 2)
– Wuxi WWTP
– Yangkou WTP
– Yangkou WWTP
– Changshu WWTP (Phase 1 & 2)
– Guanyun WTP (Phase 1 & 2)
Jiangsu
– Beichen WWTP
– Beichen WRP
Tianjin
— Liaoyang WWTP/WRP
— Liaoyang WTP
Liaoning
– Zunhua WTP
– Langfang WWTP (Phase 1 & 2)
– Langfang WRP
Hebei
– Leping WTP
Jiangxi
– Mingguang WWTP (Phase 1 & 2)
– Mingguang WTP
Anhui
– Taoyuan WTP
Hunan
Shandong
– Xiajin WTP (Phase 1 & 2)
Chongqing
– Hechuan WWTP
Galaxy NewSpring in China 50:50 JV with Mitsui for 24 water and wastewater treatment plants
Slide 13
O&MEPCDesign & Process
Engineering
Membrane
Manufacturing
Project Origination/
Market AccessR&D
• PPP/BOT basis
• EPC basis
• System sales
• Membrane sales
• Operations and maintenance
Business models
Asset Enhanced GrowthSupported by a Strong Financial Platform
Core Capabilities across the Value Chain Fully integrated solutions provider
Slide 15
Population Growth
Economic Growth
• Population growth drives 40% higher demand in global drinking water by 2030*
• Rapid urbanisation increases need for drinking water, electricity generation and proper waste management
Climate Change
• Increasing severity and length of droughts across the world
• Heavy floods increase runoff into rivers and lakes, washing pollutants and other harmful materials into water supplies
• Higher water demand for household, agricultural and industrial use
• Rapid technological developments and industrialisation has adverse effect on quality of surface and ground water
* UN report 2015
Global Water Challenges Increasing water scarcity problems
Vietnam
Worst drought in 90 years combined with rising sea levels
Malaysia Dams drying up in northern states in Malaysia
Slide 16
Thailand
Worst drought in more than 20 years with 22 of Thailand's 76 provinces affected
India
Across 10 states and 330 mil people affected
Adverse Weather Conditions South East Asia’s worst period of drought in decades
Slide 17
3.5 billion people may
experience water scarcity by 2025
1.3 billion people still lack
access to electricity
1.3 billion tonnes of
municipal solid waste produced every year by the world’s citiesSource: World Resources Institute, UN
Sustainable Cities
Water
Waste Management
Power
Global Challenges Present Opportunities Resource limitations and changing demographics support growth
Global urbanisation to increase
from 50% to 70% by 2020
Desalination Capacity History and Forecast (2000 – 2030)
Slide 18
* From 2014 - 2021
Source: GWI Desalination Markets Report, 2016
Historical and forecast desalination capacity (2000-2030)
Arab Spring
Financial Crisis
Strong Growth
in Desalination
Capacity
Falling Oil
Prices
Strong Growth in Desalination Capacity Capex for new desalination projects to grow at CAGR of 8.1%*
Slide 19
Total Desalination Capital Expenditure and Operating Expenditure by Region (2015-2020)
Top 10 markets: • Saudi Arabia• Kuwait• Qatar• Oman• UAE• US• India• Chile• China• Iran
Source: GWI Desalination Markets Report, 2016
Desalination Opportunity in MENA Greatest potential in next five years
Slide 20
Municipal
Desalination
Water Recycling
Potable Water Treatment
Wastewater Treatment
Membrane Sales
Standard System Sales
Home filtration systems
Water dispenser
Vegetable washer
Power Plants
Waste-to-Energy Plants
ELO Drinking WaterBottled Water (PT Oasis)
Industrial Consumer
Infr
as
tru
ctu
re
Co
ns
um
er W
elln
es
s
New
New
New
Tap on Opportunities for Growth Evolving business model
Slide 22
December 2014Qurayyat Independent Water Project, Oman
Value: USD 250 mil
September 2015TuasOne Waste-to-Energy Plant, Singapore
Value: SGD 750 mil
June 2015Containerised Desalination System, Saudi Arabia
Value: USD 48 mil
January 2016Seawater Reverse Osmosis & Sulphate Removal Facility, Saudi Arabia
Value: USD 50 mil
March 2016Ain Sokhna Integrated Water and Power Project, Egypt
Value: USD 500 mil
Pursuing more water
projects in the Middle East, Africa, Americas and Asia
1st Waste-to-Energy ProjectEntry into Egypt with
1st overseas IWPP
Breaking into Saudi Arabia market
1st BOT in Oman
Pick-up in Momentum with New Project Wins Steady inroads into Middle East region
Slide 23
Project Details
Capacity318,500 m3/day (water)
411 MW (power)
Concession
Period25 years (water)
Online2013 (water)
2016 (power)
Project
Description
• Desalination water - Industrial and domestic use
• Power plant – Supply electricity to desalination plant and excess sell to national power grid
Award
• Distinction, Desalination Plant of the Year, GWI Global Water Awards 2014
• Tuaspring Desalination Plant,PUB ABC Water certification 2014
• Best of Best, CCJ Best Practices Award 2016
Tuaspring Integrated Water and Power Plant Achieved Project Commercial Operation Date for power plant in Singapore
Tuaspring IWPP, Singapore
Slide 24
Project Details
Capacity 3,600 tonnes/day
Concession
Period25 years
Expected
Online 2019
Project
Description
Design-Build-Own-Operate (DBOO)
% Stake 75%
(Mitsubishi Heavy Industries:25%)
Total Project
Cost
Approx. S$750 mil
(EPC contract S$636 mil)
TuasOne Waste-to-Energy Plant Commenced Construction of Singapore’s largest, most land and energy efficient plant
TuasOne WTE plant, Singapore
Slide 25
Project Details
Capacity 200,000 m3/day
Concession
Period20 years
Expected
CompletionMay 2017
Project
Description
Desalination plant –Supply water
to governorate of Muscat
% Stake 85%
(Modern Channels Services: 15%)
Total
Project Cost
Approx. US$250 mil
(EPC contract US$210 mil)
Award
Best Water Deal Award, EMEA
Finance Project Finance Awards
2015
Qurayyat Independent Water Project Construction in progress in Oman
Qurayyat IWP, Oman
Slide 26
Project Details
Capacity150,000 m3/day (water) 457 MW (power)
Concession Period
25 years (water)
Project Description
• Desalination water -Industrial and domestic use
• Power plant – Supply electricity to desalination plant and excess sell to national power grid
Total Project Cost
EPC contract US$500 mil
Ain SokhnaSite
Ain Sokhna Integrated Water and Power Project Awarded US$ 500 mil contract in Egypt
• ELO line of products include drinking water,
bath facilities and skin gels
• Oxygen-rich water that nourishes the body and
enhances well-being
• Backed by more than 10 years of water science
• No additives or preservatives
• Alkaline with pH between 7.5 to 8
Launch of ELO Water Grow consumer segment for steady recurring income
Slide 27
* Indonesian Association of Bottled Drinking Water Companies (Aspadin)
Investment in PT Oasis in Indonesia Access to consumers in 4th populous country in the world
Slide 28
• 50% stake in PT Oasis, 2nd largest market share
in bottled water and gallon water in Indonesia
• Established distribution platform to consumers
• Strong growth opportunity
• Bottled water consumption grew 12.5% every year
from 12.8 bil litres in 2009 to 23.1 bil litres in 2014*
Slide 30
S$ mil 1Q2016 1Q2015 % Change
Total Revenue 248.3 60.4 >100
PATMI 7.3 5.6 30
• Higher revenue and PATMI contributed by TuasOne Waste-to-Energy (WTE) project and Qurayyat Independent Water Project (IWP).
Revenue and Profit
Slide 31
S$ mil S$ mil
63.0 (25%)
6.4 (11%)
9.7 (4%)
7.2 (11%)
175.1 (70%)
38.6 (64%)
0.5 (1%)
8.2 (14%)
0
50
100
150
200
250
300
1Q2016 1Q2015
Rest of the World
Singapore
China
MENA
238.4 (95%)
51.1 (84%)
9.1 (4%)
9 (15%)
0.8 (1%)
0.3 (1%)
0
100
200
300
1Q2016 1Q2015
Others
Industrial
Municipal
Revenue by Region Revenue by Sector
Higher Singapore revenue from the TuasOne WTE project.
Revenue Breakdown by Region and Sector
Slide 32
• Increase in total operating & finance expenses in line with increased engineering, construction and procurement (EPC) activities in Qurayyat IWP and TuasOne WTE project.
S$ mil 1Q2016 1Q2015 % Change
Raw Materials & Consumables 190 21 >100
Staff Costs 19 16 22
Depreciation, Amortisation & Impairment 10 5 100
Other Expenses 17 20 (15)
Finance Costs 15 11 37
Total Operating & Finance Expenses 251 73 >100
Expenses
Slide 33
S$ mil 31 Mar 2016 31 Dec 2015
Equity 1,243 1,301
Non-current Assets 2,237 2,030
Non-current Liabilities 1,066 779
Current Assets 828 995
Current Liabilities 757 946
Net Gearing (x) 0.98 0.85
• EPC activities of Qurayyat IWP and TuasOne WTE project contributed to the increase in financial receivables within non-current assets.
• Syndicated loan of US$184 mil, which was refinanced in 1Q2016, reclassified from current liabilities to non-current liabilities.
Balance Sheet
Slide 34
SCA: Service concession arrangements
• Operating CF after SCA and tax paid included investments into construction of Qurayyat IWP and TuasOne WTE project.
• Investing cash outflow mainly for investment in PT Oasis Water International, a 50% joint venture in Indonesia.
• Financing cash outflows mainly for repayments of borrowings as well as payments of dividends and interest.
S$ mil 1Q2016 1Q2015
Operating CF before SCA 158 10
Operating CF after SCA and tax paid (34) (26)
Investing CF (32) 6
Financing CF (65) (102)
Net Cash Changes (131) (122)
Cash & Cash Equivalents 181 335
Cash Flow
Slide 35
30 166 254 335
1,100 955 943
1,872 1,938 1,973 1,959
435 435
8631,145
748
423
931
1,025 732954 924
772
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15
EPC
O&M
Note:1. O&M order book is a summation of future revenues of our portfolio of plants over 20-30 year concession periods.2. Dec-15 O&M Order Book includes Tuaspring and Magtaa projects, and excludes divested China water assets.3. Dec-15 EPC Order Book includes Qurayyat IWP and TuasOne WTE project, and excludes Dahej Desalination project. 4. Dec-15 EPC Order Book includes Khurais project and Egypt IWPP won in 2016.
S$ mil
2,897
2,670
3,655
1,874
1,378
1,848
1,480
1,117
601465
2,927
Order Book
Dividend per Ordinary Share* (Singapore cents)
Slide 36
* Dividends have been restated to reflect 1-for-2 bonus share issue in 2010
0.85 0.90 0.90
1.26
2.29
3.33
4.17
2.77
3.20
2.30 2.30
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1.70
Dividend History
Slide 38
• Short-term challenges from falling oil prices, slower global economic growth
• Current over-supply situation in Singapore electricity market
• Focus on executing current EPC order book and actively pursue new projects
• Continue to explore water asset divestment opportunities
Group OutlookCautious near term outlook but remain positive in the long run