company briefing : magtaainvestors.hyflux.com/newsroom/20080422_173918_600_78bb08...magtaa project...
TRANSCRIPT
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COMPANY BRIEFING : MAGTAA
Sam OngGroup Deputy CEO Group CFO
SingaporeTuesday, 22 April 2008
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OUTLINE
1.Magtaa Project Win Information
2. Impact on Financials
3.Hyflux’s Water Strategy
4. Souk Tleta (Tlemcen) Update
5. Summary
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OUTLINE
1.Magtaa Project Win Information
2. Impact on Financials
3.Hyflux’s Water Strategy
4. Souk Tleta (Tlemcen) Update
5. Summary
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MAGTAA PROJECT BID
Capacity
EPC Value
Offtakers
Concession Period
Project Company
500,000 m3/day
approximately US$500 mil
L’Algerienne Des Eaux(“ADE”)
25 years
51% MenaSpring49% Algeria Energy Company
Other Bidders(International Open Bidding)
Acciona Agua, Biwater/Tarco/Arcofina, GE
Water/Orascom, Inima/aqualia, Befasa
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MAGTAA PROJECT HEADLIMES : GWI
“This brings Hyflux to the top of the desalination market, and that is the position we want to be in. In this bid for Magtaa, I believe we further
established a performance and cost ratio benchmark on top of what we were able to establish in Singapore.”
-Sam Ong, Group Deputy CEO and CFO
“A stunning [international open competitive] bid for the 500,000m3/day
Magtaa desalination plant in Algeria has put Hyflux on the brink of
big-time success …”
-Global Water Intelligence, April 2008
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OUTLINE
1.Magtaa Project Win Information
2. Impact on Financials
3.Hyflux’s Water Strategy
4. Souk Tleta (Tlemcen) Update
5. Summary
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• Hyflux 51% AEC 49% • WPA 25 years concession• Capacity 500,000 m3 / year• Pcod 28 mths from financial close
• Project Financing 70% -- prearranged by AEC-- predetermined 15-year USD fixed
• VAT and custom duty Incentives
• EPC 100% Hyflux• O&M 100% Hyflux
THE PROJECT
Magtaa
MenaSpring AEC
49%51%
Hyflux Ltd
100%
Sonatrach / ADE
WPAHyflux On / Offshore
EPC +
Hyflux Ltd
100%
O&M
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Hyflux Investments of S$80mil
• Equity Income• Dividend• Equity Repatriation
Financial Incentives• Project Financing • Take or Pay • Electricity rates• Vat & Custom duty Incentives
EPC + O&M• EPC Revenue of S$600mil from
2009 to 2011 expected.• O&M Revenue of S$60mil recurring
annually with costs escalation clauses
THE INVESTMENT
Magtaa
MenaSpring AEC
49%51%
Hyflux Ltd
100%
Sonatrach / ADE
WPAHyflux On / Offshore
EPC +
Hyflux Ltd
100%
O&M
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China
81%
SG
7%
OTH
12%
SG
26%
OTH
18%
China
56%
China
71%
SG
21%
OTH
8%
Note : Graph is not drawn to scale.
HYFLUX : Growing China in A Growing Pie
FY2007 act
FY2006 actFY2005 act
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China
81%
SG
7%
MENA
12% China
58%
MENA
40%
China
50%
MENA
49%
Note : Graph is not drawn to scale. This is a snapshot and the numbers may change in accordance to delivery schedules and potential future orders.
HYFLUX : Growing Algeria within MENA in A Growing Pie
FY 2008 est
FY 2009 est
FY 2007 act
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435870
~1500
4Q06 4Q07 April 2008 Est
HYFLUX : Order Book with MAGTAA
S$mil
Note : The net order book is a snapshot estimated figure as of 22 April 2008. There are additions and deletions YTD esp in China.
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OUTLINE
1.Magtaa Project Win Information
2. Impact on Financials
3.Hyflux’s Water Strategy
4. Souk Tleta (Tlemcen) Update
5. Summary
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HYFLUX’S WATER STRATEGY:Sustainable Global Presence in Desalination
Membrane (proprietary strength …)Largest UF pretreatment plant in the world.
Location (not a one time deal …)
High water scarcity with
comprehensive PPP schemes.
Desalination (fastest growing …) Largest membrane seawater desalination plant in Singapore, China, Algeria and the world.
ChinaTianjin Dagang
150,000m3/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$200 MIL2005
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HYFLUX’S WATER STRATEGY:Favorable Commercial & Technological Forces in Desalination
Projected Growth of Installed Desalination Capacity (Gulf vs Rest of World)
China
India
Algeria
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HYFLUX’S WATER STRATEGY:Sustainable Risk & Reward PPP with High Water Scarcity
Algeria is one the most water-stressed countries in the world, which presents huge opportunities for
seawater desalination and water recycling.
Highest concentration of large-scale membrane seawater desalination plants in the world
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HYFLUX’S WATER STRATEGY:Value Added Breakthrough Performance / Costs Benchmark
0
0.5
1
1.5
2
2.5
1991-2000 2001-2005 2006-2010 2011-2015
Historic and Forecast Capacity Growth in Algeria
Algeria Market Share (awarded capacity)
Hyflux,32%
Others, 68%
Capacity, million m
3/day
Source: Desalination Markets 2007, GWI
*equivalent of 4 additional Magtaasneeded in 2011-2015
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HYFLUX’S WATER STRATEGY:Sustainable Growth Within A Plant … Within A Country.
to be launched end 2008 BEJAIA --100,00014
to be launched end 2008JIJEL --100,00013
2,370,000
50,000
100,000
200,000
500,000
120,000
100,000
200,000
200,000
200,000
200,000
100,000
200,000
CAPACITY(m3/day)
2.521 BILTOTAL
INIMA-AQUALIA, AECEL TARF -91 MIL12
BIWATER, AECOUED SEBT -115 MIL11
BEFASA, AECTENES -291 MIL10
DEC 2009136 MILINIMA-AQUALIA-SPA SPAIN, AEC
RAS DJINET7
HONAINE
MOSTAGANEM
SKIKDA
DEC 2011468 MILHYFLUX, AECMAGTAA9
DEC 2009181 MILSNC LAVALIN-ACCIONA SPAIN, AEC
FOUKA8
DEC 2009238 MILHYFLUX, AECSOUK TLETA6
NOV 2009230 MILGEIDA SPAIN, AEC5
NOV 2009212 MILINIMA-AQUALIA-SPA SPAIN, AEC
4
SEP 2008204 MILGEIDA SPAIN, AECBENI SAF3
FEB 2008105 MILGEIDA SPAIN, AEC2
JAN 2008250 MILGE IONICS, AECHAMMA1
EXPECTED PCOD
PROJECT VALUE (US$)
PROJECT COMPANYPLANTNO
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HYFLUX’S WATER STRATEGY
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COMPANY BRIEFING : MAGTAA
Sam OngGroup Deputy CEO Group CFO
SingaporeTuesday, 22 April 2008
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HYFLUX’S WATER STRATEGY: Value Add Technology & Knowhow of an Integrated Water Company
0
10
20
30
40
50
60
70
1980 1985 1990 1995 2000 2005 2010 2015
Capacity, millions of m3/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
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OUTLINE
1.Magtaa Project Win Information
2. Impact on Financials
3.Hyflux’s Water Strategy
4. Souk Tleta (Tlemcen) Update
5. Summary
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SOUK TLETA (TLEMCEN) UPDATE : Focusing on Execution
EPCProgress
• Construction started in Feb 2008• 6% of EPC contract completed• 2 weeks ahead of time
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OUTLINE
1.Magtaa Project Win Information
2. Impact on Financials
3.Hyflux’s Water Strategy
4. Souk Tleta (Tlemcen) Update
5. Summary
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Incremental Capacity : Certainty of Financial Visibility
950
Built Capacity
950
450
Built Capacity
Singapore, China,
India & MENA
China +
1st Algeria Start
550
China +
1st Algeria End +
2nd Algeria Start
Accum. Capacity
1,950
500
2,450
Total Capacity Built
+ To Be Built
2001 to 2007 2008 2009 2010 and 2011
China Order Bk Completed +
2nd Algeria End
Accum. Capacity
1,400
Future
BOT
Growth
TBA
Note : Graph is not drawn to scale. This is a snapshot and the numbers may change in accordance to delivery schedules and potential future orders.
Snapshot Summary excludes TOT and
Existing Plant Expansions to be announced.
Capacity : mil litre / day (mld)
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• The Magtaa Win
• Hyflux the World Leader in
Desalination & Water Recycling
• Sustainable Strategy
• Sustainable Business Model
• Smart Execution
SUMMARY : MAGTAA
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THANK YOU
Sam OngGroup Deputy CEO Group CFO
SingaporeTuesday, 22 April 2008