Click to edit Section / Appendix...

8/7/2017

1

Click to edit Section / Appendix number

Click to edit Section / Appendix title

FY 2013 Results Presentation27 February 2014

2Q2017 Results BriefingAugust 7, 2017

2DisclaimerThe presentation is prepared by Yangzijiang Shipbuilding (Holdings) Ltd. (the “Company”) and is intended solely for your personal reference and is

strictly confidential. The information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not

contain all material information concerning the Company. Neither the Company nor any of its affiliates, advisors or representatives make any

representation regarding, and assumes no responsibility or liability whatsoever (in negligence or otherwise) for, the accuracy or completeness of, or any

errors or omissions in, any information contained herein nor for any loss howsoever arising from any use of these materials. By attending this

presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of

applicable securities laws.

The information contained in these materials has not been independently verified. No representation or warranty, expressed or implied, is made as to,

and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. It is not the

intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial or trading

position or prospects. The information and opinions contained in these materials are provided as at the date of this presentation and are subject to

change without notice. None of the underwriters nor any of their respective affiliates, advisors or representatives shall have any liability whatsoever (in

negligence or otherwise) for any loss howsoever arising from any use of these materials.

In addition, the information contains projections and forward-looking statements that reflect the Company's current views with respect to future events

and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and

competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the

Company and its directors. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's

assumptions are correct. Actual results may differ materially from those forecast and projected.

This presentation and such materials is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for

any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation

thereto. This document may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted

without the prior written consent of the Company.

Any investment in any securities issued by the Company or its affiliates should be made solely on the basis of the final offer document issued in respect

of such securities.

Relaying copies of this presentation to other persons in your company or elsewhere is prohibited.

These materials are not for distribution, directly or indirectly, in or into the United States, Canada or Japan.

These materials are not an offer of securities for sale into the United States, Canada or Japan. The securities may not be offered or sold in the United

States under the U.S. Securities Act of 1933, as amended, unless they are registered or exempt from registration. There will be no public offer of

securities in the United States.

8/7/2017

2

3

SECTION I

COMPANY OVERVIEW

4

A leading shipbuilder in PRC in terms of manufacturing capability and

capacity

Listed on SGX-Mainboard since April 2007

STI constituent stock

The largest Chinese listed entity on SGX-Mainboard

One of the most profitable shipbuilding company

A Primary Shipbuilding Group in China

8/7/2017

3

5

Enhance R&D capability, build key types of vessels of all sizes and highly

specialized vessels to cater to and stimulate market demand

Business Structure

YangzijiangShipbuilding

Shipbuilding

and related business

(over 90% of total revenue)

Shipbuilding

Logistics and chartering

Trading

Steel fabrication and related trading

Non-shipbuilding business – Financial investment (less than 10% of total revenue)

6

Strategically Located Yards

8/7/2017

4

7

Competitive Strengths in Shipbuilding

Outstanding

resilience and

consistent

financial

performance in a

challenging

shipbuilding

market Diversified portfolio

Client network

Execution and

delivery

Financial position

Cost manage-

ment

8

SECTION II

FINANCIAL HIGHLIGHTS

8/7/2017

5

9

Financial Highlights2Q2017 2Q2016 Change

Comments RMB'000 RMB'000 %

Revenue 3,791,261 2,993,551 27

4 vessels delivered vs. 7 in 2Q2016,

higher revenue from shipbuilding due

to higher volume of shipbuilding

activities for larger vessels, higher

trading revenue and higher other

shipbuilding related business

Gross Profit 804,835 684,235 18Higher GP as a results of higher

revenue. GPM reduced due to lower

contract price of vessels and higher

revenue from lower margin trading

businessGross Profit Margin 21.2% 22.9% -

Other Income 49,992 51,084 (2) -

Other Gains 188,608 147,072 28

Fair value gains on its financial assets,

from outstanding currency-hedging

derivative financial instruments, and

from the dissolution of four shipping

companies under its shipping arm,

which was offset by an exchange

related loss.

Expenses # 115,339 292,856 (61)

Lower impairment provision of RMB8

million made for HTM investments,

lower finance costs and revaluation

gain from USD borrowings

Net Profit Attributable to Equity Holders

(PATMI)719,916 415,400 73

PATMI Margin 19.0 13.9 -

#: Includes Administrative and Finance Expenses

Results Highlight – 2Q2017 YoY

10

2,727,743

3,655,606

5,143,6924,469,539

3,443,145

257,590

214,184

331,618

207,884

341,288

8,218

10,574

32,928

4,135

6,828

0

1500000

3000000

4500000

6000000

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Microfinance HTM Asset Shipbuilding Related

(All amounts are stated in RMB’000)

Revenue Breakdown

Gross Profits Gross Profit Margins

2Q2017 2Q2016 2Q2017 2Q2016

Shipbuilding Related 473,432 433,802 14% 16%

HTM Investment 324,638 242,532 95% 94%

Micro Finance 6,765 7,901 99% 96%

Shipbuilding Related

Revenue Breakdown

(2Q2017)

Percentage (%)

Shipbuilding 66%

Trading 32%

Others* 2%

Total 100%

* Includes revenue from shipping logistics and

chartering, steel fabrication and ship design

services etc.

8/7/2017

6

11

4,572 4,762

4,144

3,719 3,637

1,694

3,581

3,096 3,483

2,460

1,752

1,388

30.9%

33.2%

27.0%

23.2%24.1%

20.0%

24.2%

21.6%

22.7%

15.4%

11.6%

16.4%

10%

15%

20%

25%

30%

35%

-

1,000

2,000

3,000

4,000

5,000

6,000

FY2012 FY2013 FY2014 FY2015 FY2016 1H2017

Gross Profit (RMB'mln) Net Profit Attributable to Shareholders (RMB'mln) Gross Profit Margin Net Profit Margin

Gross Profit and Net Profit Attributable to Shareholders

RMB’ mln

Profitability Trend

12Profitability Trend

EBIT and EBITDA

4,869 4,951

4,274

3,699

3,216

1,824

5,121 5,235

4,704

4,238

3,757

2,106

32.9%34.5%

27.8%

23.1%

21.3% 21.5%

34.6%

36.5%

30.6%

26.5%24.9% 24.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY2012 FY2013 FY2014 FY2015 FY2016 1H2017

EBIT (RMB'mln) EBITDA (RMB'mln) EBIT Margin EBITDA Margin

RMB’ mln

8/7/2017

7

13Results Highlight – Balance Sheet

Financial Highlights30 Jun 2017 31 Dec 2016

RMB'000 RMB'000

Property, Plant and Equipment 5,210,998 5,476,950

Restricted Cash 335,417 1,219,695

Cash & Cash Equivalents 6,299,733 7,085,796

Financial Assets, Held-to-Maturity 10,609,615 10,906,634

Total Debt 5,996,804 7,224,457

Total Equity 23,880,336 23,199,109

Gross Gearing 25.1% 31.1%

Net Gearing (including restricted cash) Net Cash Net Cash

Net Asset Value per Ordinary Share (RMB cents) 608.43 592.20

14

SECTION III - A

SEGMENTAL REVIEW

Shipbuilding &

Related Segments

8/7/2017

8

15Revenue Trend

Shipbuilding Revenue Breakdown

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY2012 FY2013 FY2014 FY2015 FY2016 2017YTD

6,861

8,273 7,660

3,101 4,065

2,500

5,0062,755

3,048

8,276 5,314

2,151

1,620

1,803 2,316 516

567

7

642

215

101

569

495

LNG

Jack-up

Others

Multi-purpose/Mini Bulkers

Containership

(Jack Up)

(LNG)

(Others)

RMB’ mln

16Strong Order Book

Note: Order book is as at 30 June 2017

Total:85 vessels; 3.80 million CGT @ US$ 3.95 billion

46 containerships, 2.28 million CGT @ US$ 2.32 billion

34 bulk carriers, 1.32 million CGT @ US$ 1.38 billion

3 oil tankers, 0.07 million CGT @ US$0.10 billion

2 VLGCs, 0.13 million CGT @ US$ 0.15 billion

Containerships Bulk Carriers• 1,668TEU x 2 vessels

• 1,800TEU x 9 vessels






• 6,500DWT x 1 vessels










VLGC• 84,000VLGCs x 2 vessels

Oil Tanker

• 39,000CT x 3 vessels

8/7/2017

9

17Historical Order Book

Vessel Qty US$’ billion

3243 42 38

44 43 44 46

71

69

4747 37 35 35 34

22

2

22

2

2

2

22

22 2 23 3 3

4.8

5.4

4.7 4.74.4 4.3

4.0 4.0

0

1

2

3

4

5

6

0

20

40

60

80

100

120

140

30-Sep-15 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17

Oil Tanker VLGC

LNG Bulk Carriers

Containerships Outstanding Value (US$'bln)

18

62% 63% 62% 56%44% 37% 37% 36% 36%

3%5%

4% 5% 5% 5% 6%

38% 37% 35% 39%52% 58% 58% 59% 58%

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Europe North America Australia/Asia

52% 47% 46% 41% 37% 35% 36% 32% 32%

25%17% 15% 18%

13% 12% 11%11% 11%

23%36% 39% 41%

50% 53% 53% 57% 57%

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017


Order Book Customer ProfileBreakdown by Geographical Segments

Containerships Bulk Carriers

2 VLGC Vessel and 3

Oil Tanker orders are

from Asia

Figures are stated as at 30 Jun 2017

32% 29% 31% 31% 30% 33% 34% 33% 33%

68%

38% 28% 28% 23% 19% 16% 16% 16%

33% 41% 41% 47% 48% 50% 51% 51%

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017


8/7/2017

10

19Order-Winning Momentum

New contracts secured in terms of vessel quantity and contract value

Vessel Qty US$’billion

2

12

2

12 10

26

7 5

48

9

9

61

31

7

9 14

22

3

1.38

1.16

0.30

2.90

1.80

2.25

0.82 0.45

0

0.5

1

1.5

2

2.5

3

3.5

0

10

20

30

40

50

60

70

80

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1H2017

Oil Tanker VLGC LNG Bulk Carrier Containerships Contractual value (US$' bln)

20Shipping and Chartering

Current fleet includes:

- 8 x 92,500DWT, self managed by the Group

- 3 x 64,000DWT, self managed by the Group

Note – 2 units of 92,500DWT dry bulk carriers were disposed on the second-hand market in July 2017

The strategy / plan for the business depends on the conditions of the

shipbuilding market

The idea:

- Leveraging on shipbuilding facilites, build and manage vessels

and generate revenue

- To balance utilization

- A ready fleet to better meet shipowners’ demand

- Based on forward planning, build vessels and sell the vessels

when valuation picks up on the market

8/7/2017

11

21

SECTION III - B

SEGMENTAL REVIEW

Financial Investments

22Interest Income Trend - HTM Assets

Source: Company Data

446.4

335.6

167.0

200.4

257.6

214.2

331.6

207.9

341.3

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

RMB’mln

8/7/2017

12

23

5,400 5,473 4,944 5,803 6,069

4,5265,297 4,770

5977

5,354 4,264 5,028

4,771 5,593

6,4285,610

5,8174,633

27%

25%24%

25%

28% 28%

26%

27% 27%

22%

23%

24%

25%

26%

27%

28%

29%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Current Non-Current % of Total Assets

Held-to-Maturity Assets

Source: Company Data

RMB’mln

24

Breakdown of Investment Amount for which collaterals are secured (%)

25%

5%

12%

17%

23%

12%

6%

Services Wholesale/retailReal estate InfrastructureManufacturing OthersAgriculture

15% 9% 12%19% 12% 12% 15% 16%

26%14% 24%

27%24% 44% 40%

44% 47%38%

22% 19%21%

23%15% 17%

17% 14% 11%49% 48%

40% 34% 29% 31% 24% 23% 23%1%

1%

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Shares Others Land Others - Govt-related Vessels Receivables

Breakdown of Borrowers (2Q2017)Coverage Ratio

Held-to-Maturity Assets

2.7 2.6 2.5 2.5 2.4

2.2 2.2 2.1 2.5 2.0

3.0

2.2 2.2

2.3 2.4 2.6

2.0

1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

1.9 1.7

2.5

2.11.9

2.0 1.9 1.8 1.71.8

1.3

2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Land Shares Others

Other - Govt-related Vessels Receivables

8/7/2017

13

25

182.7

110.3

63.5

11.0 -

60.0

120.0

180.0

240.0

FY2014 FY2015 FY2016 1H2017

Breakdown of Collaterals

(As of 30 June 2017)

Interest Income Trend – Micro Finance

RMB’mln

24%

2%15%

59%

Guarantee Land Mortgage

Property Mortgage Share Charge

26

SECTION IV

TRENDS & STRATEGIES

26

8/7/2017

14

27Global shipbuilding capacity declined

- As of 2016, the number of global shipbuilders declined 57% from the 2009 level

- The number is expected to fall further in 2017 (by more than 70% overall)

- Global shipbuilding capacity is anticipated to decline 50% from the previous peak

- Capacity is likely to decline 45-50% in 2017 following additional restructuring and industry realignment efforts

282017 Market Outlook

- During 2014-16, shipbuilders for the first time saw orders decline for three consecutive years

- Order growth is likely to recover in 2017 (on a low base of comparison) but orders to stay weak through 1H17

- Ship prices are projected to pick up in 2H17

8/7/2017

15

29Uncertainties remain despite recovery

- Increased global shipping demand supported by the

transportation of iron ore and grain, which led to increases in

charter rates and a strong rebound of the Baltic Dry Index

- The increase in second-hand vessel prices also triggered

increased enquiries for new build vessels

- Oversupply of vessels remains, sustainability of recovery

remains to be seen

30

Seek for further opportunities amidst

successful maiden delivery

Business Strategy --- Shipbuilding

Clean Energy

Vessels

LNG Carriers

Containerships Remains as a key category in portfolio

Dry Bulk CarriersFocus on large-size carriers, multi-

purpose and tailored vessels

Enhance R&D and develop new

vessels to cater to long-term demand

8/7/2017

16

31

SECTION V

SOCIAL RESPONSIBILITY

32A Responsible Corporate Citizen Continuous efforts in building up R&D capabilities in the design and development

of green vessels

Group is ISO9001 qualified by the China Classification Society

Quality management system is BV ISO9002 and CCS ISO2000 certified

Vessels are CCS, ABS, BV, NK, GL, LR, DNV and RINA certified

32% employees possess a diploma-level or higher certification. R&D headcount

accounts for 16% of our total staff strength

Environmental management system ISO14001 and CSQA certified

Compliant with national and international standards on emissions, such as

wastewater, waste gas, solid waste, dust, and noise generated in the production

process

Group won the SIAS Most Transparent Company Award 3 times in a row from

2010 to 2012

“Shipbuilding & Repair Yard Award” of Seatrade Maritime Awards Asia 2015

A FORTUNE China 500 company

8/7/2017

17

33A Responsible Corporate Citizen

Group Executive Chairman, Mr. Ren Yuanlin believe in returning to the society.

Over the years, the Group and Mr. Ren have given hundreds of millions of RMB

to society for various purposes

The Foundation primarily funds a charity for improving elderly service facilities;

finances technological innovation, helps in disaster rescue and helps poor people

Jiangyin Yuanlin Rehabilitation Centre Project set up and in progress (Artist’s

impression as shown below)

Mr. Ren was listed as one of the Asian Philanthropist by Forbes in 2015. He

donates the dividends from his one billion Yangzijiang shares to the Yuanlin Charity

Foundation, which he founded in 2011

34

SECTION VI

STOCK INFORMATION

8/7/2017

18

35Dividend Summary

Dividend and dividend payout ratio

SGD ($)

0.055

0.05 0.05

0.055

0.045

0.04

26%27%

30%

28%

32%

43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

0.01

0.02

0.03

0.04

0.05

0.06

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Dividend (SGD) Dividend Payout Ratio

%

36Top Shareholders

No. Holder Name Position Filing Date %

1 YANGZI INTERNATIONAL 1,002,845,825 19/4/2016 26.17

2 LIDO POINT INVESTMENTS LTD 394,134,000 11/3/2015 10.29

3 HONGKONG HENGYUAN INVESTMENT 303,962,240 11/3/2016 7.93

4 BLACKROCK 187,288,156 22/6/2017 4.89

5 VANGUARD GROUP 48,946,816 30/6/2017 1.28

6 SEB 41,911,900 31/3/2017 1.09

7 VALUE PARTNERS GROUP LTD 36,190,800 31/12/2016 0.94

8 NORGES BANK 29,820,817 31/12/2016 0.78

Total 2,045,100,554 53.37

Source: Bloomberg, as of August 7, 2017

8/7/2017

19

37Stock Performance

Source: Bloomberg, as of August 7, 2017

38

For more information,please contact:

Financial PR Pte Ltd

Investor Relations Consultants

Romil Singh / Reyna Mei

[email protected]

[email protected]

Tel: (65) 6438 2990

Fax: (65) 6438 0064

Thank YouQ&A

Click to edit Section / Appendix...

Documents

Transcript of Click to edit Section / Appendix...