COMPANY BRIEFING : Q208

Sam Ong

Group Deputy CEO

Group CFO

Singapore

6 August 2008

1 Financial Review : Q208 & 1H08

2 Business Portfolio Review

3 Hyflux Strategy

4 The Business Model

AgendaAgenda

1 Financial Review : Q208 & 1H08

4

Revenue & Profit ReviewRevenue & Profit Review

S$ mil Q208 Q207 * + / - % 1H08 1H07 * + / - %

Revenue 108 45 139% 198 63 215%

PBT 27 6 344% 33 9 278%

PATMI 23 6 311% 28 7 326%

EPS - cents 4.3 1.06 306% 5.4 1.28 322%

* Restated due to adoption of INT FRS 112.

5

Revenue by SectorRevenue by Sector

2Q 2Q 2Q 2Q 2008200820082008

Municipal

80%

Industrial

20%

Others

0%

2Q 2Q 2Q 2Q 2007200720072007

Municipal

22%

Industrial

76%

Others

2%

Municipal sales increased significantly from S$10 million to S$87 million.

$21.3m

$0.1m

$86.7m

$34.3m

$10.0m

$0.9m

6

Revenue by SectorRevenue by Sector

1H 20081H 20081H 20081H 2008

Municipal

80%

Industrial

20%

Others

0%

1H 20071H 20071H 20071H 2007

Municipal

30%

Industrial

69%

Others

1%

Municipal sales increased significantly from $19 million to $157 million in 1H 2008.

$40.3m

$0.3m

$157.0m $43.0m

$18.7m

$1.0m

7

Revenue by CountryRevenue by Country

2Q 2Q 2Q 2Q 2007200720072007

China

80%

Singapore /

Others

20%

$49.8m

$36.0m

$9.2m

Sales in MENA accounted for 34% of total revenue, while China contributed 61% of total revenue for 2Q 2008.

2Q 2008

MENA

34%

Singapore

/ Others

5%

China

61%

$65.7m

$5.1m

$37.3m

8

Revenue by CountryRevenue by Country

1H 20071H 20071H 20071H 2007

China

80%

Singapore /

Others

20%

$49.8m

$50.0m

$12.7m

1H 2008 sales in MENA accounted for 44% of total revenue, while China contributed 50% of total revenue. Significant increased in China from $50 million to 99.2 million & MENA revenue was $86.6 million in 1H 2008.

1H 2008

MENA

44%

Singapore

/ Others

6%

China

50%

$99.2m

$11.8m

$86.6m

9

Cost & ExpensesCost & Expenses

S$ mil Q208 Q207 * + / - % 1H08 1H07 * + / - %

Raw Materials 56 28 97% 125 37 234%

Personnel 14 7 100% 24 13 85%

Depreciation 2 2 -- 4 4 --

Other Operating 8 3 154% 10 7 44%

Net Finance 0.9 0.3 142% 2.4 1.5 60%

Total Operating and Finance Exp 80 41 96% 165 62 166%

* Restated due to adoption of INT FRS 112.

10

Balance SheetBalance Sheet

S$ mil 30-Jun-08 31-Dec-07 + / - %

Equity 274 247 11%

LT Assets 362 224 61%

Current Liabilities 237 120 97%

Net Current Assets 149 219 -32%

Debt / Equity Ratio X 0.51 0.32

11

Cash FlowCash Flow

� Operating activities – mainly due to increase in operating profit for 2Q 2008

� Investing activities – mainly due to capital expenditure of property, plant & equipment to support expansion

� Financing activities – mainly due to proceeds from borrowings for funding of investments

* Restated due to adoption of INT FRS 112.

S$ mil Q208 Q207 * + / - % 1H08 1H07 * + / - %

CF Operations 17 1 -- 49 (23) --

CF Investing (44) (38) 15% (97) (27) --

CF Financing 23 53 (57%) 21 42 (49%)

Net Cash Changes (5) 15 -- (27) (9) --

Cash & Equivalents 94 49 90%

12

Financial RatiosFinancial Ratios

Q208 1H08 FY07

Gross Margin 49% 37% 47%

Net Margin 21% 14% 17%

Receivable Turnover 1.2 2.4 5.1

DSO Days 75 74 72

13

Order BookOrder Book

.

0

200

400

600

800

1000

1200

1400

1600

31/12/06 31/12/07 30/06/08

Order Book has grown significantly from S$863 million as of 31/12/07 to current level of S$1.45billion.

2 Business Portfolio Review

� Tiantai WWTP

Zhejiang

� Taizhou WWTP

� Dafeng WTP x 2

� Yangzhou WWTP

� Wuxi WWTP x 2

� Yangkou WTP, WWTP

� Yangkou Port WTP,

WWTP

� Changshu WWTP

� Yilin WTP, WWTP

� Xuzhou WTP, WWTP

� Guanyun WTP, WWTP

� Wujin WWTP

Jiangsu

� Beichen WWTP, WRP

� Shuangjie WWTP, WRP

� Dagang Desalination

Tianjin

� Liaoyang WWTP/WRP,

WTP

� Huludao Desalination

Liaoning

� Zunhua WTP

� Langfang WWTP, WRP

� Mancheng WWTP x 2,

WRP

Hebei

� Xiajin WTP

� Xuecheng WWTP, WRP,

WTP x 2

Shandong

� Leping WWTP, WTP

Jiangxi

� Mingguang WWTP, WTP

Anhui

� Taoyuan WTP

Hunan

Note: WWTP: Waste Water Treatment Plant; WTP: Water Treatment Plant; WRP: Waste Water Recycling Plant

� Lushan WTP

Henan

Portfolio is diversified and strategically located in key growthPortfolio is diversified and strategically located in key growth regions in the PRCregions in the PRC

China Water Plants ���� S$500 Million

Desalination

plants, 2

Waste water

treatment

plants, 21

Water recycling

plants, 5

Water

treatment

plants, 16

Total number of water assets: 44Total number of water assets: 44

China Water Plants ���� S$500 Million

Algeria Water Plants ���� S$900 Million

3 58

22

9

2003-2004 2005 2006 2007 2008

2003-2004 2005 2006 2007 2008

SingSpring (Desalination

plant) *

Jiangsu ChangShu (WWTP) Jiangsu Yangzhou (WWTP) Jiangsu Dafeng North (WTP) Hunan Taoyuan (WTP)

Tianjin Dagang

(Desalination plant)

Jiangsu Wuxi (WWTP) Jiangsu Dafeng (WTP) Hebei Zunhua (WTP) Jiangxi Leping (WTP)

NewSpring Huludao

(Desalination plant)

Jiangsu Taizhou (WWTP) Liaoning Liaoyang (WWTP) Tianjin Beichen (WWTP & WRP) Jiangsu Yilin (WWTP)

Zhejiang Tiantai (WWTP) Hebei Langfang (WWTP) Jiangxi Leping (WWTP) Liaoning Gongchangling

(WTP)

Henan Lushan (WTP) Hebei Langfang (WRP) Jiangsu Yancheng (WTP) Anhui Mingguang (WWTP

& WTP)

Yangkou Rudong (WTP) Jiangsu Guanyun (WWTP & WTP) Jiangsu Yangkou Port

(WWTP & WTP)

Jiangsu Wujin (WWTP) Shandong Xiajin (WTP)

Tlemcen ( Algeria) Beichen Shuangjie (WWTP & WRP) Magtaa (Algeria)

Hebei Mancheng (WWTPx2 & WRP)

Xuzhou Jiawang (WWTP & WTP)

Yangkou Rudong (WWTP)

Jiangsu Wuxi (WWTP)

Shandong Xuecheng (WWTP,

WTPx2 & WRP)

Demonstrated track record in

securing attractive projects and

expand Hyflux’s global reach

Hyflux Water Plants ���� S$1.45 Billion

Debt Equity Ratio 0.51x

Business Trust and Incubator

Fund

Optimize Capital

Structure

�Syndicated loan

�Bilaterals

�MTN

�Project financing

�Equity / loan partners

�SingSpring ���� CitySpring

�SinoSpring ���� HWT

�Development capital for funding & market access to both brownfield and greenfieldprojects

Funding For Growth

�Q406 net gearing was at 0.43x

�Q407 net gearing was at 0.32x

�Q208 net gearing at 0.51x

3 Hyflux Strategy

Membrane (proprietary strength …)Largest UF pretreatment plant in the world.

Location (not a one time deal …)High water scarcity withcomprehensive PPP schemes.

Desalination (fastest growing …) Largest membrane seawater desalination plant in Singapore, China, Algeria and the world.

ChinaTianjin Dagang

100,000m3/day, US$100 MIL2008

AlgeriaMagtaa

500,000m3/day, ~US$500 MIL

2011

AlgeriaSouk Tleta (Tlemcen)

200,000m3/day, US$200 MIL2009

SingaporeSingSpring

136,380m3/day, US$200 MIL2005

Hyflux Water Strategy

Projected Growth of Installed Desalination Capacity (Gulf vs Rest of World)

ChinaIndia

Algeria

60%

Hyflux Water Strategy : Location

0

10

20

30

40

50

60

70

1980 1985 1990 1995 2000 2005 2010 2015

Capacity, millions of m

3/day Membrane

Thermal

Historic and Forecast Installed Desalination Capacity by Technology

Source: Desalination Markets 2007, GWI

Drivers for Membranes• improvements in membrane efficiency• reduction in membrane cost• development of energy recovery devices

• Inhouse Design & Engineering capability• Inhouse UF pretreatment membranes• Inhouse Membrane R&D capability

Hyflux Water Strategy : Membranes

Hyflux Growth Beyond China & Algeria : Water Scarcity

Hyflux Growth Beyond Water : Membrane Applications

4The Business Model :

Focus on Execution

Asset

Invest

Divest

Securitise

Restructure

Execution

(1) Project Management

(2) Invest in People & Process

(3) Capitalize on Technology

Equity, Debt

Structured Finance

Operational

Cash Flows

The Business Model

√ Investment Process � Control & Excellence

√ Project Management � Accountability & Execution

√ Technology + Commercialization � Sustainability

√ Critical Projects � Competitive Advantage

EPC O&M Biz

Concession Agreement

Operate Profitably & Safely

Covenants / Profit Optimization

A

Discipline

Platform

For

A

High

Growth

Company

&

A

High

Performance

Team

The Operational Discipline

Hyflux Group CEO, President & Managing Director, Ms Olivia Lum and Algerian Minister of Energy & Mines, Dr Chakib Khelil

Group Photo featuring Hyflux Group CEO, Hyflux Group Deputy CEO,Algerian Energy Company CEO, Sonatrach CEO, Sonelgaz CEO, and National Bank of Algeria’s CFO

In Action. In Algeria

THANK YOU

Q&A

Sam Ong

Group Deputy CEO

Group CFO

Singapore

6 August 2008