Hyflux LtdFY2013 Results ReviewFY2013 Results Review

20 February 2014

Slide 1

FORWARD-LOOKING STATEMENT

This presentation has been prepared by Hyflux Ltd for the information of the attendees of this presentation.

The presentation may contain 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

Disclaimer

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.

Any forward-looking statement in this presentation is accurate only as of the date it is issued. Hyflux has no obligation to

publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise,

except as required by law.

The presentation is not and does not constitute or form part of any offer, invitation or recommendation to subscribe for orpurchase any security and neither this presentation nor anything contained in it shall form the basis of, or be relied upon inconnection with, any contract, commitment or investment decision.

No representation or warranty express 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. None of Hyflux Ltd or any of its affiliates,advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arisingfrom any use of this document or its contents or otherwise arising in connection with this presentation.

Slide 2

• Completed Tuaspring Desalination Plant (Singapore’s largest) in

September 2013

• Revenue and profits reflect timing of project completion during the year

• Actively expanding our global footprint

Executive highlights

Slide 3

Revenue & profit

S$ mil FY2013 FY2012 % Change

Total Revenue 535.8 654.8 (18)

PBT 51.6 76.2 (32)

PATMI 44.0 61.0 (28)

EBITDA 119 118 1

Gross Margin 50% 39%

Net Margin 8% 10%

Slide 4

Net Margin 8% 10%

• Revenue and profits reflect the timing of the completion of projects such as TuaspringDesalination Plant in 3Q FY13.

Asia ex-China and municipal sector continued to be key contributors

S$ mil S$ mil

494.6 (76%)400

500

600

700

Asia ex-China

28.6 (5%)

49.9 (7%)

7.3 (2%)

2.7 (1%)

400

500

600

700

Others

Revenue by Region Revenue by Sector

Slide 5

22.3 (4%) 28.9 (4%)47.3 (9%)

131.3 (20%)

466.2 (87%)

0

100

200

300

FY2013 FY2012

China

MENA499.9 (93%)

602.1 (92%)

0

100

200

300

FY2013 FY2012

Industrial

Municipal

Expenses

S$ mil FY2013 FY2012 % Change

Raw Materials & Consumables 267 397 (33)

Staff Costs 73 84 (13)

Depreciation, Amortisation & Impairment 42 24 78

Other Expenses 79 57 39

Finance Costs 28 21 29

Total Operating & Finance Expenses 489 583 (16)

Slide 6

• Lower raw materials and consumables used as well as staff costs were a result of the completion of some major projects and improved cost management.

• Depreciation, amortisation and impairment increased due mainly to impairments and write-downs of the carrying value of non-core business and technology related assets.

• The rise in other expenses was due to the higher utilities and professional fees incurred.

Balance sheet

S$ mil 31 Dec 2013 31 Dec 2012

Equity 886 877

Non-current Assets 1,776 1,302

Non-current Liabilities 1,150 938

Net Current Assets 261 513

Net Gearing 1.15x 0.56x

Slide 7

• Increase in non-current assets was a result of continued investment in water plants.

• Non-current liabilities rose due to an increase in borrowings including non-recourse financing.

Cash flow

S$ mil FY2013 FY2012

Operating CF before SCA 46 275

Operating CF after SCA and tax paid (423) (234)

Investing CF (26) (39)

Financing CF 168 131

Net Cash Changes (281) (142)

Cash & Cash Equivalents 244 498

Slide 8

Cash & Cash Equivalents 244 498

SCA: Service concession arrangement

• Higher operating CF after SCA and tax paid reflected continued investments in water plants.

• Cash used in investing activities were incurred mainly for capital expenditure in support of the Group’s activities.

Final dividend of 1.60 Singapore cents per ordinary share proposed

Dividend per ordinary share* (Singapore cents)

2.29

3.33

4.17

2.77

3.20

2.30

Slide 9

*Dividends have been restated to reflect 1-for-2 bonus share issue in 2010

0.47

0.85 0.9 0.9

1.26

2.29

0.70

1.60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2.30

Key Project Highlights

Slide 10

Tuaspring Desalination Plant, Singapore

Singapore’s second and largest SWRO desalination plant

Capacity 318,500 m3/day

Online 2013

Project typeDesign, build, own, operate on

25 years’ concession

Power plant is progressing as

planned but its completion is

Slide 11

Other details

planned but its completion is

dependent upon the

operational readiness of the

national power grid to connect

to the plant.

Zunyi Wastewater Treatment Plant, China

Hyflux’s largest wastewater treatment plant in China

Capacity 150,000 m3/day

Online 2013

Project typeBuild, own, transfer on 30

years’ concession

Other details

Wastewater treatment plant

treats domestic wastewater in

Slide 12

Other detailssouthern Zunyi City, Guizhou

Province.

Surat Membrane-based Water Recycling Plant, Gujarat, India

India’s first and largest membrane-based water recycling project

Capacity 40,000 m3/day

Online 2013

Project type

Technology package (design,

supply, installation, testing &

commissioning of membrane

systems for plant)

Slide 13

Other details

Membrane-based water

recycling plant produces

industrial-grade water for

industrial estate in Surat.

Other projects

Tembusu Wastewater Treatment Plant, Singapore

Slide 14

Tembusu Wastewater Treatment Plant, Singapore

Balikpapan & Bontang Desalination Projects, Indonesia Leachate MBR Project, Malaysia

748931

1,025732

1,500

2,000

2,500

3,000

EPC

O&M

Order book

S$ mil

1,117

1,480

1,848

1,378

1,874

2,897

2,670

30166 254 335

1,100955 943

1,872 1,938

435435

863

1,145

423

0

500

1,000

Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13

O&M

Slide 15

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-13 EPC order book includes Dahej desalination project; WPA was signed in January 2013.3. Dec-13 O&M order book includes Tuaspring and Magtaa projects.

465601

1,117

Group Outlook

Slide 16

• Growing water scarcity, need for better sanitation, recognition of the impact of

water risks on businesses are driving growth of the water sector.

• Slower 1H is expected given the timing of completion of Tuaspring and the

start-up of Dahej.

• Focus on tendering for various large projects in Middle East and Africa.

Group outlook

• Leverage proven expertise and core capabilities across water value chain.

Slide 17

Focus on growth markets

Slide 18

• Growth segments like advanced wastewater treatment, reuse and desalination

• Opportunities in fast-growing regions

• Countries with water infrastructure development programmes

Potential projects in next 12 months in Hyflux’skey markets

Country Project Capacity (m3/day)

Saudi Arabia Al Khafji SWRO Desalination 300,000

Saudi Arabia Rabigh SWRO Phase 4 600,000

Saudi Arabia Yanbu 4 300,000

Saudi Arabia Yanbu 5 100,000

Saudi Arabia Shoaiba 4 IWPP 650,000

Saudi Arabia Khobar 4 IWPP 250,000

Saudi Arabia Khobar 5 220,000

Slide 19

Saudi Arabia Khobar 5 220,000

Saudi Arabia Jubail 4 320,000

Oman Qurayyat IWP 181,840

Oman Suwaiq IWP 227,300

Qatar Ras Laffan Industrial Desalination IWP 204,570

Kuwait Doha East 190,932

Kuwait Doha West 454,600

Source: GWI November 2013

Potential projects in next 12 months in Hyflux’skey markets

Country Project Capacity (m3/day)

Nigeria Yewa I 227,300

Nigeria Yewa II 227,300

Nigeria Ibeshe I 227,300

South Africa Cape Town SWRO 100,000

Significant opportunities in Hyflux’s key markets with estimated US$8 bn* worth of projects made available for tender

Slide 20

South Africa Durban SWRO 150,000 x 2

South Africa Saldanha Bay 25,500

India Chennai 3 200,000

India Chennai Nemmeli extension 150,000

Singapore Changi NEWater 228,000

Total 5,684,642

Source: GWI November 2013

* Estimates based on GWI’s projected capacity, actual project value may vary.

• In January 2014, Hyflux raised $300 million perpetual capital securities.

• Hyflux is now in a good position to capture the substantial opportunities

available in our target markets.

Perpetual Capital Securities

Slide 21

• Over the years, Hyflux has been developing and growing our recurring revenue

base.

• Today, we are seeing rising recurring income streams from O&M services and

asset returns, membrane sales and other services.

Building a stable business (Recap of FY2012 presentation)Growing recurring revenue stream

• Our O&M revenue is expected to grow substantially with the start of operations

of Tuaspring Desalination Plant in 2H2013.

• By FY2016, our O&M revenue will capture the full impact of our current

portfolio.

Slide 22

Recurring gross operating income

S$ mil

60

80

100

120

Slide 23

Note:1. Estimates based only on existing portfolio and do not include any potential projects.2. Includes O&M and asset returns from existing plants in China & Singapore, Tuaspring, Magtaa, Dahej, and membrane

sales and other services.3. Gross operating income is approximately EBITDA.4. Actual results may vary due to external factors.

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40

2014 2015 2016 2017 2018 2019 2020

Hyflux’s Management Committee

LIM Suat Wah

OON Jin Teik

WONG Lup Wai

Slide 24

Gary KEE Winnifred HEAP

OON Jin Teik

Peter WU KUM Mun Lock

ZHAO Qing ZHAO Ping

Milind KumarOlivia LUM

Slide 25

25

WATER SOLUTIONS

THAT IMPACT LIVES