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FY 2013 Results Presentation27 February 2014
Corporate Presentation April 2018
2Disclaimer
The 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.
3
SECTION I
COMPANY OVERVIEW
4Introduction
* According to Clarksons. As of January 31, 2018.
Established in 1956; listed on SGX-Main board since April 2007
STI constituent stock; the largest Chinese listed entity on SGX
Strong shipbuilding capability and capacity
Global top-10 by outstanding orderbook in the past few years. No.3 in the world*
5
Business Overview
Containerships Dry Bulkers LNG Carriers
All sizes up to 11,800 TEU
Breakthrough technologies
Strong client base globally
All sizes up to 400,000 DWT
Outstanding fuel efficiency
Strong client base globally
Delivered two 27,500 CBM
LNG carriers in 2017
Enhance capability for future
growth
Shipbuilding related businesses contribute over 90% of Group’s revenue
6
Strategically Located Yards
7
Competitive Strengths
• Established management and operation system
• Economies of scale
• Cost and production efficiency over peers
• Strong financial position
• Smooth production without financial constraint
• Gives customer confidence
• Top ship owners globally
• Stable, long-term relationships
• Foundation of healthy order inflow and orderbook
• Reliable quality
• On-time deliveries
• Repeat customers
Track record
Clientele
Efficiency Financial strengths
8
SECTION II
FINANCIAL HIGHLIGHTS
9
Financial Highlights1Q2018 1Q2017 Change
Comments RMB'000 RMB'000 %
Revenue 4,963,255 4,681,558 6
9 vessels delivered vs. 14 in 1Q2017,
higher revenue from shipbuilding due
to progressive construction of more
larger containerships, higher trading
revenue and higher other shipbuilding
related business
Gross Profit 859,631 889,341 (3) Lower GP and GP margin mainly due
to rising costs of raw materials and
weakening USD against RMBGross Profit Margin 17.3% 19.0% -
Other Income 47,894 57,434 (17)Lower interest income and lower
dividend income
Other (Losses) / Gains (42,188) 91,072 -
Mainly comprise foreign exchange loss
and fair value loss on financial assets,
largely offset by gain on disposal of
one unit of 92500DWT and subsidy
income
Expenses # 46,063 169,553 (73)Reversal of impairment loss and lower
finance cost due to reduced
borrowings at group level
Net Profit Attributable to Equity Holders
(PATMI)595,099 667,670 (11)
PATMI Margin 12.0% 14.3% -
#: Includes Administrative and Finance Expenses
Results Highlight – 1Q2018 YoY
10
(All amounts are stated in RMB’000)
Revenue Breakdown
Shipbuilding
Related
Revenue
Breakdown
(1Q2018)
Percentage
of
Shipbuilding
Revenue
(%)
Gross Profit
Margins
(%)
Shipbuilding 63% 17%
Trading 35% 1%
Others* 2% 41%
Total 100%
* Includes revenue from shipping logistics and
chartering, steel fabrication and ship design
services etc.
4,469,539
3,443,1454,143,971
6,038,043
4,652,428
207,884
341,288
228,343
301,108
301,9534,135
6,828
5,851
15,461
8,874
0
2000000
4000000
6000000
8000000
1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Microfinance Financial Assets, at amortised costs Shipbuilding Related
Gross Profits Gross Profit Margins
1Q2018 1Q2017 1Q2018 1Q2017
Shipbuilding Related 560,771 685,559 12% 15%
Financial Assets, at amortised costs
290,085 199,698 96%96%
Micro Finance 8,775 4,084 99% 99%
11
Gross Profit and Net Profit Attributable to Shareholders
RMB’ mln
Profitability Trend
4,762
4,144
3,719 3,637
3,312
860
3,096
3,483
2,460
1,752
2,931
595
33.2%
27.0%
23.2% 24.1%
17.2%17.3%
21.6%
22.7%
15.4%
11.6%
15.3%
12.0%
10%
15%
20%
25%
30%
35%
-
1,000
2,000
3,000
4,000
5,000
6,000
FY2013 FY2014 FY2015 FY2016 FY2017 1Q2018
Gross Profit (RMB'mln) Net Profit Attributable to Shareholders (RMB'mln) Gross Profit Margin PATMI Margin
12Profitability Trend
EBIT and EBITDA
RMB’ mln
4,951
4,274
3,699
3,216
3,601
829
5,235
4,704
4,238
3,757
4,083
973
34.5%
27.8%
23.1%
21.3%
18.7%16.7%
36.5%
30.6%
26.5%24.9%
21.3%
19.6%
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
FY2013 FY2014 FY2015 FY2016 FY2017 1Q2018
EBIT (RMB'mln) EBITDA (RMB'mln) EBIT Margin EBITDA Margin
13Results Highlight – Balance Sheet
Financial Highlights31 Mar 2018 31 Dec 2017
RMB'000 RMB'000
Property, Plant and Equipment 4,652,987 4,820,729
Restricted Cash 1,214 29,405
Cash & Cash Equivalents 5,551,412 6,195,431
Financial Assets, at Amortised Costs1 12,356,534 11,978,869
Total Debt 3,881,426 4,890,746
Total Equity 27,148,063 26,516,697
Gross Gearing 14.3% 18.4%
Net Gearing (including restricted cash) Net Cash Net Cash
Net Asset Value per Ordinary Share (RMB cents) 666.69 652.20
1According to new accounting requirements, the Group has reclassified “Financial assets, held-to-maturity” as “Financial assets, at amortised costs” on the
balance sheet
14
SECTION III - A
SEGMENTAL REVIEW
Shipbuilding &
Related Segments
15Revenue Trend
Shipbuilding Revenue Breakdown
RMB’ mln
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
FY2013 FY2014 FY2015 FY2016 FY2017 1Q2018
8,273 7,660
3,101 4,065
7,889
1,550
2,755 3,048
8,276
5,314
4,054
1,366
1,803 2,316
516
567
122
18
642
215
101
569
236 LNG
Jack-up
Others
Multi-purpose/Mini Bulkers
Containership
(Jack Up)
(LNG)
(Others)
(LNG)
(Others)
16Strong Order Book
Note: Order book is as at 31 March
2018
Total:121 vessels; 4.39 million CGT @ US$ 4.52 billion
36 containerships, 1.54 million CGT @ US$ 1.61 billion
82 bulk carriers, 2.78 million CGT @ US$ 2.81 billion
3 oil tankers, 0.07 million CGT @ US$0.10 billion
Containerships Bulk Carriers• 6,500DWT x 1 vessels
• 29,800DWT x 1 vessels
• 39,000DWT x 3 vessels
• 45,000DWT x 6 vessels
• 62,000DWT x 5 vessels
• 82,000DWT x 39 vessels
• 83,500DWT x 4 vessels
• 180,000DWT x 5 vessels
• 208,000DWT x 12 vessels
• 400,000DWT x 6 vessels
Oil Tanker• 39,000CT x 3 vessels• 1,668TEU x 4 vessels
• 1,800TEU x 9 vessels
• 1,900TEU x 2 vessels
• 2,200TEU x 3 vessels
• 2,400TEU x 4 vessels
• 2,700TEU x 1 vessels
• 3,800TEU x 2 vessels
• 10,000TEU x 4 vessels
• 11,800TEU x 7 vessels
17Historical Order Book
Vessel Qty US$’ billion
3844 43 44 46 41 44
36
47 37 35 35 3457
7682
22
2
22
2 2 2
2
33 3
3
3 3
4.7
4.4
4.3
4.0 4.0
4.3
4.7
4.5
3.6
3.8
4.0
4.2
4.4
4.6
4.8
0
20
40
60
80
100
120
140
30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18
Oil Tanker VLGC
LNG Bulk Carriers
Containerships Outstanding Value (US$'bln)
18Order Book Customer Profile
Breakdown by Geographical Segments
Containerships Bulk Carriers
3 Oil Tanker orders
are from Asia
Figures are stated as at 31 Mar 2018
56%44% 37% 37% 36% 36%
57%46% 51%
5%
4%5% 5% 5% 6%
5%
7% 5%
39%52% 58% 58% 59% 58%
38% 47% 44%
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Europe America Australia/Asia
41% 37% 35% 36% 32% 32% 39% 37% 40%
18%13% 12% 11%
11% 11%11% 12% 11%
41%50% 53% 53% 57% 57% 50% 51% 49%
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Europe America Australia/Asia
31% 30% 33% 34% 33% 33% 28% 28% 24%
28% 23% 19% 16% 16% 16% 17% 19% 23%
41% 47% 48% 50% 51% 51% 55% 53% 53%
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Europe America Australia/Asia
19
122
12 10
26
714
9
9
61
31 7
9
60
9
2
2
3
1.16
0.30
2.90
1.80
2.25
0.82
2.11
0.27
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
0
10
20
30
40
50
60
70
80
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 1Q2018
Oil Tanker VLGC LNG Bulk Carrier Containerships Contractual value (US$' bln)
Order-Winning Momentum
New contracts secured in terms of vessel quantity and contract value
Vessel Qty US$’billion
20Shipping and Chartering
Current fleet includes:
- 7 x 92,500DWT, self managed by the Group
- 3 x 64,000DWT, self managed by the Group
- 1 x 19,900DWT, stainless steel chemical tanker, self managed by the Group
Note – 1 unit of 92,500DWT dry bulk carrier was disposed on the second-hand market in 1Q2018
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
21
SECTION III - B
SEGMENTAL REVIEW
Financial Investments
22
Interest Income Trend –Financial Assets, at amortised costs
Source: Company Data
RMB’mln
200.4 207.9 302.0
257.6 341.3
214.2
228.3
331.6
301.1
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
FY2016 FY2017 FY2018
1Q 2Q 3Q 4Q
23Financial Assets, at amortised costs
Source: Company Data
RMB’mln
5,803 6,069
4,5265,297 4,770
5,977
8,2437,574 8,145
4,771 5,593
6,4285,610
5,8174,633
2,465
4,4054,211
25%
28% 28%
26%27% 27% 27%
28%29%
0%
5%
10%
15%
20%
25%
30%
35%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Current Non-Current % of Total Assets
24
33%5%
7%
20%
25%
8%1%
1%
Services Wholesale/retailReal estate InfrastructureManufacturing OthersAgriculture Mining
Breakdown of Investment Amount for which collaterals are secured (%)
Breakdown of Borrowers (1Q2018)Coverage Ratio
Financial Assets, at amortised costs
19% 12% 12% 15% 16%26% 24%
33% 34%
24% 44% 40%44% 47%
38% 36%35% 33%
23%15% 17%
17% 14% 11% 15%14% 14%
34% 29% 31% 24% 23% 23% 22% 15% 14%1% 2% 2% 4%
1% 1% 1% 1%
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Shares Others Land Others - Govt-related Vessels Receivables
2.5 2.4
2.2 2.2 2.1 2.0 2.0
2.3 2.3 2.2
2.2
2.3 2.4 2.6
2.0
1.6 1.6
1.7
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
2.11.9 2.0 1.9
1.8 1.7 1.61.6
1.61.8
2.0 2.2 1.9
1.3 1.3 1.3 1.3
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018
Land Shares Others
Other - Govt-related Vessels Receivables
25
SECTION IV
TRENDS & STRATEGIES
25
26Containership Outlook
Shipping demand and vessel supply dynamics are expected to support gradual improvement in containership
market in 2018
Source: Clarksons Research
27Dry Bulk Trades Expected to Grow
Sourc
e: C
lark
sons R
esearc
h
28Dry Bulker Outlook
Relatively healthy demand for dry bulk shipping and slow fleet expansion are expected to support market
recovery to continue in 2018
Source: Clarksons Research
29LNG Carrier Outlook
LNG demand will primarily come from China, India, other Asian countries and Europe, while supply
comes from the US and Australia. LNG shipping demand will remain strong, and the size of the LNG
carrier fleet is expected to catch up in the next few years.
Source: BP Energy Outlook 2017
30
Build up the capability and grow the
business
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
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
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
35Dividend Summary
Dividend and dividend payout ratio
SGD ($)
0.05 0.05
0.055
0.045
0.04
0.045
27%
30%28%
32%
43%
29%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
0.01
0.02
0.03
0.04
0.05
0.06
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Dividend (SGD) Dividend Payout Ratio
%
36Top Shareholders
No. Holder Name Position Filing Date %
1 YANGZI INTERNATIONAL 1,002,845,825 25/9/2017 25.27
2 LIDO POINT INVESTMENTS LTD 394,134,000 25/9/2017 9.93
3 HONGKONG HENGYUAN INVESTMENT 305,237,240 15/3/2017 7.69
4 BLACKROCK 187,288,156 22/6/2017 4.72
5 VANGUARD GROUP 75,703,017 31/3/2018 1.91
6 ALLIANCE BERNSTEIN 52,343,931 28/2/2018 1.32
7 SCHRODERS PLC 26,781,000 31/03/2018 0.67
8 NORGES 24,083,076 31/12/2017 0.61
Total 2,068,416,245 52.12
Source: Bloomberg, as of April 26, 2018
37Stock Performance
Source: Bloomberg, as of April 26, 2018
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
