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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
• 1,900TEU x 5 vessels
• 2,700TEU x 6 vessels
• 3,800TEU x 8 vessels
• 10,000TEU x 4 vessels
• 11,800TEU x 12 vessels
• 6,500DWT x 1 vessels
• 29,800DWT x 2 vessels
• 36,500DWT x 3 vessels
• 39,000DWT x 3 vessels
• 62,000DWT x 5 vessels
• 82,000DWT x 9 vessels
• 83,500DWT x 3 vessels
• 208,000DWT x 1 vessels
• 260,000DWT x 1 vessels
• 400,000DWT x 6 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
Europe North America Australia/Asia
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
Europe North America Australia/Asia
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
Tel: (65) 6438 2990
Fax: (65) 6438 0064
Thank YouQ&A