Sam OngGroup Deputy CEO & CFO

Cho Wee PengGroup EVP & CIO

2Q09 & 1H09 RESULTS REVIEW

6 August 2009

Agenda

• 2Q09 & 1H09 Financial Results Review

• Hyflux Water Business & Market Overview

• Updates on Key Projects

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2Q09 & 1H09 Financial Results

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S$ mln 2Q 09 2Q 08 +/-% 1H 09 1H 08 +/-%

Revenue 134.5 108.1 24% 222.7 197.7 13%

PBT 28.5 27.1 5% 35.4 32.7 8%

PATMI 25.9 22.6 15% 31.0 28.3 10%

Balanced Revenue & Profit Growth

Group revenue and profits increased in line with the execution of key municipal projects

Effective tax rate was lower due to tax incentives enjoyed by certain entities in the group

Key highlights

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MENA & China’s Municipal Driving Growth

With progressive EPC recognition of Tlemcen and Magtaa, MENA‘s 1H09 revenue of S$131 mil is accounted for 59% of the Group’s revenue.

Key highlights

Municipal sales continues to be key driver.

Industrial sales has dipped due in part to the economic slowdown in China, but has seen signs of business recovery.

Key highlights

Revenue by CountryS$mln S$mln

Revenue by Sector

192

China99 50%

87 44%

12 6%

131 59%

85 38%

7 3%

40 20%

157 80%

30 14%

192 86%

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S$ mln 2Q 09 2Q 08 +/-% 1H 09 1H 08 +/-%

Raw Materials & Consumables

72.5 55.6 30% 132.4 121.6 9%

Staff Costs 14.3 13.9 3% 27.3 24.2 13%

Depreciation & Amortisation 2.5 1.9 29% 4.9 4.0 22%

Other Exp 19.9 8.0 149% 24.7 9.8 151%

Finance Cost 2.0 1.8 11% 4.9 3.8 28%

Total Operating & Fin Exp 111.2 81.2 37% 194.2 163.4 19%

Expenses In Line With Sales Growth

Raw materials costs increased in line with increase in sales volume.

Staff costs increased in line with business growth, in particular in preparation for the execution of projects in MENA and increase in completion of O&M plants.

Other expenses increased due to higher project tender fees, professional, selling, travelling expenses and foreign exchange differences.

Key highlights

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Growth With A Healthy Balance Sheet

S$ mln 30 Jun 09 31 Mar 09 31 Dec 08

Equity 336 318 308

LT Assets 538 527 462

Current Liabilities 332 326 325

Net Current Assets 61 62 60

Net Gearing 0.60x 0.82x 0.54x

Equity increased due to net profit for 1H 09.

Long Term Assets increased in line with the progress of construction of water plants in China, and the additional investments in associates.

Net gearing held at a steady level of 0.6X.

Key highlights

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Growth With Positive Cash Flow

S$ mln 2Q 09 2Q08 1H 09 1H 08

CF Operations 76 17 25 49

CF Investing (6) (44) (38) (97)

CF Financing (21) 23 43 21

Net Cash Changes 49 (4) 30 (27)

Cash & Equivalents 120 94 120 94

Positive operational cash flow of S$76 million in 2Q 09.Cash flow position has improved over the previous corresponding periods with progressive payments from major projects.

Key highlights

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2Q 09 2Q 08 1H 09 1H 08

Gross Margin 48% 48% 42% 37%

Net Margin 20% 22% 14% 15%

Working Cap Days 41 132 49 168

Growth With Strong Profit & Cash Management

Margins held steady with improved working capital management.

Key highlights

Hyflux & Water Business Overview

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Accelerating Recurring O&M Revenues

435

435

863

1,145

952

30166

254 335

694

0

500

1000

1500

Dec-05 Dec-06 Dec-07 Dec-08 Jun-09

EPC O&MS$mil

465

601

1,117

1,4801,646

O&M orderbook has gone up to reflect the completion of several plants in China including the first phase of China’s Tianjin Dagang Desalination plant of 100,000 m3/day capacity

Key highlights

China

82%

SG/OTH

14%

MENA

4%

SG

26%

OTH

18%

China

56%

China

74%

SG

19%

OTH

7%

Note : Graph is not drawn to scale.

FY2007

FY2006 FY2005

Growing China In A Growing Pie

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China

82%

MENA

4% China

54%

MENA

40%

China

38%

MENA

59%Note : Graph is not drawn to scale.

FY 2008

1H 2009

FY 2007

Growing MENA In A Growing Pie

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SG & OTH14%

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Hyflux SWRO Track Record > 2 million m3/day

POTENTIAL

POTENTIAL

Hyflux SWRO desalination experience is reaching 2.0 million m3 per day capacity.

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MENA SWRO Portfolio with Libya > 1.6 mil m3/day

Benghazi>400,000m3/day

Magtaa500,000m3/day

Tlemcen200,000m3/day

Tripoli East>500,000m3/day

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Hyflux Gaining in Seawater RO + UF Desalination

Source: 2009 Desalination Market Forecast, GWI

WithLibya

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It’s Possible : Membrane Momentum

Source: 2009 Desalination Market Forecast, GWI

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It’s Possible : Relative Growth in Desalination

Source: 2009 Desalination Market Forecast, GWI

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It’s Possible : Hyflux’s Position is Entrenched

Source: 2009 Desalination Market Forecast, GWI

Key Projects

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Tianjin Dagang, China

Tlemcen, Algeria

Tianjin Dagang, ChinaSeawater Desalination Plant

Capacity: 100,000 m3/dayFirst Phase

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Tianjin Dagang—We are Open For Business

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Tianjin Dagang—Largest Seawater UF Systems

The largest operating SeawaterUF KristalTM

pretreatment facility in the world.

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Tianjin Dagang—Welcoming Visitors & Partners

Tlemcen, Algeria

Seawater Desalination Plant

Capacity: 200,000 m3/day

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Tlemcen—A Plant is A Life’s Source

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Tlemcen—Largest Seawater RO Trains

The largest operating SeawaterROtreatment facility in the world.

A Sustainable Business Model Productivity & Growth

• Project delivery and cost management

• People development with the right aptitude and attitude

• Process technology and R&D collaborating with strategic partners and commercial institutions

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Momentum : New Markets & New Application

we make things happen.

Disclaimer

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

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