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COMPANY PROFILE

Hyflux Ltd

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PUBLICATION DATE: 15 Apr 2016
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Hyflux Ltd
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3

Key Facts ......................................................................................................................... 3
Business Description .....................................................................................................4
History ............................................................................................................................. 5
Key Employees ...............................................................................................................9
Key Employee Biographies .........................................................................................10
Major Products & Services ..........................................................................................11
SWOT Analysis .............................................................................................................12
Top Competitors ...........................................................................................................17
Company View ..............................................................................................................18
Locations And Subsidaries .........................................................................................20
Financial Overview .......................................................................................................23

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Hyflux Ltd
Company Overview

Company Overview

COMPANY OVERVIEW
Hyflux Ltd (Hyflux) is a provider of engineering, procurement and construction (EPC) services for energy
and water treatment plants. The companys portfolio of products and services include membrane and
systems, water solutions, operations and maintenance services, renewable resources services and
capital management. Hyflux designs, builds and operates water treatment plants and seawater
desalination plants. The company also supplies a range of water and fluid treatment solutions such as
wastewater cleaning, water recycling, water reclamation, raw water purification and ultra pure water
production for industrial and municipal clients. It also offers home consumer filtration and purification
products. The companys membranes and systems are installed in more than 1,300 plants in 400
locations worldwide. The company operates more than 30 water, wastewater, water recycling and
desalination plants across the globe. The company markets its products and services in Asia-Pacific, the
Middle East, Africa and the Americas. Hyflux is headquartered in Singapore.

The company reported revenues of (Singapore Dollars) SGD445.2 million for the fiscal year ended
December 2015 (FY2015), an increase of 38.5% over FY2014. In FY2015, the companys operating
margin was 22.7%, compared to an operating margin of 30.9% in FY2014. In FY2015, the company
recorded a net margin of 9.3%, compared to a net margin of 17.9% in FY2014.

The company reported revenues of SGD260.0 million for the second quarter ended June 2016, an
increase of 4.7% over the previous quarter.
Key Facts

KEY FACTS

Head Office Hyflux Ltd

80 Bendemeer Road
Hyflux Innovation Centre
Singapore City
Singapore City
SGP
Phone 65 6 2140777
Fax 65 6 2141211
Web Address www.hyflux.com
Revenue / turnover (SGD Mn) 445.2
Revenue (USD Mn) 324.0
Financial Year End December
Employees 2,500
Singapore Exchange Securities 600
Trading Ticker

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Hyflux Ltd
Business Description

Business Description

BUSINESS DESCRIPTION
Hyflux provides EPC services for water treatment plants. The company designs, builds and sells water
treatment plants and seawater desalination plants. The companys portfolio of services includes research
and development (R&D) and process evaluation; manufacturing of components; systems assembly; pilot
and turnkey projects; plant operation and maintenance; retrofitting; direct sales and after-sales support
services. In addition, it offers home consumer filtration and purification products. The companys
membranes and systems are installed in more than 1,300 plants in 400 locations worldwide. The
company operates more than 30 water, wastewater, water recycling and desalination plants across the
globe. The company classifies its operations into three reportable divisions: Municipal, Industrial and
Others.

Through the Municipal division, the company supplies a wide range of water and fluid treatment solutions
to municipalities and governments. Its portfolio of services includes commissioning, operation and
maintenance of water treatment plants and liquid separation plants based on customized or design-build-
own-operate-transfer arrangements. In FY2015, the Municipal division recorded revenue of SGD419.1
million, which accounted for 94% of the companys total revenue.

The companys Industrial division offers wastewater treatments for the manufacturing sector including
textile and dye; pulp and paper; semiconductors and microelectronics; steel and metal; mining; and oil
and petrochemical industries. In FY2015, the Industrial division recorded revenue of SGD24.1 million,
which accounted for 5% of the companys total revenue.

The companys Others division carries out consumer business. In FY2015, the companys portfolio of
consumer segment has increased by the acquisition of 50% stake in PT Oasis and Kaqun Europe. PT
Oasis is a producer of bottled drinking water and gallon water in Indonesia, by acquiring stake in the
company, Hyflux has established distribution channel in Indonesia. Kaqun Europe is a water technology
company, which enables the company to produce water with high and stable oxygen content. In FY2015,
the Others division recorded revenue of SGD2.0 million, which accounted for 1% of the companys total
revenue.

It also offers separation and treatment services for food and beverages processing industry; and specialty
processes for pharmaceutical, oil and petrochemical, and enzymes sectors. The company manufactures
and sells its hollow fiber membranes under Kristal and FerroCep brands. In addition, it offers stainless
steel tubular membranes proprietary membranes under the FerroCep brand.

The company also operates a membrane technology R&D center at Kallang Bahru, Singapore, to develop
treatment technologies in water and environmental engineering solutions. In addition, it has a joint R&D
center with Marmon Water LLC in the US to develop new water treatment and filtration products for the
Asian market. Geographically, the company classifies its operations into four regions: Singapore,
Peoples Republic of China, MENA and Others. In FY2015, these regions accounted for 38%, 20%, 39%
and 3%, of the companys total revenue, respectively.

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History

History

HISTORY
The company was founded as Hydrochem (S) Pte Ltd.

The company expanded its operations in China.

Hyflux started the production of proprietary membranes.

The company's shares were floated on Singapore Stock Exchange.

The company's subsidiary, Hydrochem (S) Pte Ltd received a contract valued at SGD16.10 million from
the Singapores Public Utilities to supply process equipment for a water reclamation plant at Bedok,
Singapore.
Board.

Hyflux obtained ISO 9001 : 2000 certification for its manufacturing of membrane products for filtration.

The company's subsidiary, Hyflux Engineering Pte Ltd, entered into a water service agreement with ISK
Singapore Pte Ltd to develop a water treatment facility to supply ISKs titanium dioxide plant at Tuas,
Singapore.

The company won a 20-year build-own-operate project to supply drinking water for the western part of
Singapore from Public Utilities Board of Singapore..

Hyflux opened its new membrane technology R&D center in Hyflux Building at Kallang Bahru to develop
treatment technologies in water and environmental engineering solutions.

The company expanded its operations in the Middle East.

The company received a 30-year design-build-own project for Tianjin Dagang Desalination Plant from the
Tianjin Dagang District Government.

Hyflux opened first seawater reverse osmosis (SWRO) desalination plant in Singapore.

The company signed an agreement with Ningxia Electric Power Development & Investment Co., Ltd and
Western PVC Co., Ltd to form a joint venture to build, own and operate an organic acid plant in
Shizuishan, Ningxia, China.

The company was awarded the Most Transparent Company Award in the services category by SIAS.

The company established Hyflux Engineering (India) Pvt Ltd and expanded its operations to India.

Hyflux along with Marmon Water LLC opened a joint R&D center in the US to develop new water
treatment and filtration products for Asian market.

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History

The companys subsidiary, Hyflux Utility Ltd, was awarded three water treatment projects valued
CNY340.00 million in China.

The company's subsidiary, Spring Utility Limited and Malakoff International Ltd obtained a contract from
Algeria Energy Company to design, develop, construct, and operate a seawater desalination plant at
Tlemcen, Algeria for 25 years.

The company won a contract to construct the worlds largest SWRO desalination plant in Magtaa, Algeria.

Hyflux formed a 50:50 joint venture company, H.J. NewSpring Limited, with JGC Corporation to develop
green field water projects in China.

Hyflux signed a MoU with Japan Bank for International Cooperation (JBIC) for financing its water projects
in Asia and MENA regions from JBIC.

The company formed a 50:50 joint venture company, Galaxy NewSpring Pte Ltd in China, with Mitsui &
Co to develop and manage water projects.

Hyflux Utility Ltd, a joint venture company of Hyflux, signed a MoU with Yangzhou Chemical Industrial
Zone Administrative Authority to check the feasibility of implementing Phase 3 of the Yangzhou Qing
Shan waste water treatment plant with a capacity of 20,000 tons per day.

The company launched a new polymeric ultrafiltration membrane model under Kristal brand.

The company received three build-own-transfer (BOT) projects to develop three water projects at the
Hechuan Industrial Park in Chongqing City, China from the Government of Chongqing, Hechuan, China.

The company started construction of Tuaspring Desalination Plant, a 25-year design-build-own-operate

project, with a daily capacity of 318,500 cubic meter.

Hyflux partnered with Hitachi Ltd to develop Asia's largest seawater desalination plant with a capacity of
336,000 cubic meter water per day in Gujarat, India.

The company opened its new global headquarters, Hyflux Innovation Centre in Singapore.

The company signed a water purchase agreement with Dahej SEZ Limited to deliver desalinated water to
the Dahej Special Economic Zone in Gujarat, India.

The company opened a new Hyflux Innovation Centre in Singapore.

The companys subsidiary, Hyflux Investment Consultancy and Management Service (Tianjin) Co., Ltd,
signed two MOUs to explore collaborations with the governments of Chuxiong and Qujing in Yunnan
province, China to develop water and environmental projects in the two cities, including Chuxiong
Development Zone, Luliang Industrial Park and local townships.

The companys subsidiary, Hyflux Membrane Manufacturing (S) Pte Ltd signed an agreement with

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History

Grundfos Holding A/S, a leading pump manufacturer to develop a standardized ultrafiltration membrane-
based sub-system for the treatment of surface and ground water.

The companys subsidiary, Hyflux Management and Consultancy Pte Ltd signed a strategic co-operation
framework agreement for the development of the Hejiang Fobao Yulanshan Mountain Wetlands project in
Sichuan Province, China.

The company in coordination with PUB, the national water agency of Singapore opened Singapores
second and largest seawater reverse osmosis (SWRO) desalination plant, Tuaspring Desalination Plant.

Hyflux Ltd. has entered into a joint venture with Tolaram Corp. to explore opportunities for the
development of water treatment plants in Nigeria.

The company's subsidiary Hyflux International Pte Ltd signed a memorandum of understanding with the
Banco Interacciones, one of the Mexicos leading infrastructure bank, to jointly carry out exploration,
structuring, pursuit and/ or installation of water and other projects and developments in Mexico.

The company opened a new seawater reverse osmosis desalination plant in Magtaa, Algeria.

Hyflux and National Power and Water Co., LLC received a letter of award for an international tender to
design, build, own and operate an independent water project in Qurayyat, Oman from the government-
owned Oman Power and Water Procurement Company SAOC.

The company was awarded a contract worth $260 million contract from Oman Power and Water
Procurement Company to develop an independent water project at Quriyat area of Oman.

In June, the company's wholly-owned subsidiary Hydrochem Saudi Limited was awarded contract worth
US$48 million from the state-owned Saline Water Conversion Corporation to design, build and supply a
containerised desalination system with a total designed capacity of 30,000 cubic metres per day to the
Kingdom of Saudi Arabia.

The company along with its consortium partner, Mitsubishi Heavy Industries, Ltd was selected by the
National Environment Agency to establish a new waste-to-energy plant in Singapore.

The company signed an agreement to acquire 30% stake in consumer water technology company, Kaqun
Europe Zrt.

The companys subsidiary, Spring China Utility Ltd, acquired remaining stake in H.J. NewSpring Limited
and H.J. Technical Consultant Pte Ltd.

The companys subsidiary, Hyflux Capital (Singapore) Pte. Ltd., has entered an agreement with Tuspark
Technology Services Investment Ltd. to set up an investment holding company (Invest Co) in which
Hyflux Capital (Singapore) Pte. Ltd. will have a 25% shareholding interest.

The company's subsidiary Hydrochem Saudi Ltd., secured a contract worth US$50.4 million from
Snamprogetti Saudi Arabia Co Ltd, to design, manufacture and deliver a seawater reverse osmosis and

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History

sulphate removal facilities package for the Khurais Central Processing Facility in Khurais, Saudi Arabia.

The company was awarded a contract from the General Authority for the Suez Canal Economic Zone
(SCZone) to construct the Ain Sokhna Integrated Water and Power Project in Egypt for US$500 million.

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Key Employees

Key Employees

KEY EMPLOYEES

Name Job Title Board

Olivia Lum Chairman, Chief Executive Executive Board
Officer
Christopher Murugasu Director Non Executive Board
Gary Kee Director Non Executive Board
Gay Chee Cheong Director Non Executive Board
Lau Wing Tat Director Non Executive Board
Lee Joo Hai Director Non Executive Board
Simon Tay Director Non Executive Board
Teo Kiang Kok Director Non Executive Board
Cheong Aik Hock Executive Vice President-Power Senior Management
Business
Kum Mun Lock Senior Managing Director Senior Management
Lim Poh Fong Secretary Senior Management
Lim Suat Wah Chief Financial Officer, Executive Senior Management
Vice President
Lim Swee Kwang Executive Vice President Senior Management
Peter Wu Senior Managing Director Senior Management
Wong Lup Wai Chief Operating Officer, Senior Management
Executive Vice President
Zhao Ping Chief Executive Officer-Galaxy Senior Management
NewSpring Pte. Ltd., Senior
Managing Director
Zhao Qing Chief Executive Officer-China, Senior Management
Senior Managing Director

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Key Employee Biographies

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Olivia Lum

Board:Executive Board
Job Title:Chairman, Chief Executive Officer
Since:1989

Ms. Olivia Lum is the Chairman and Chief Executive Officer of the company. Priro to this, she served as a
chemist at Glaxo Pharmaceutical. She is also a Member of the board of International Enterprise
Singapore. She is also a Member of the Singapore-Jiangsu Cooperation Council, Singapore-Oman
Business Council, Singapore-Zhejiang Economic & Trade Council, Singapore-Tianjin Economic & Trade
Council and Singapore Business Federation Council.

Lim Suat Wah

Board:Senior Management
Job Title:Chief Financial Officer, Executive Vice President
Since:2013

Ms. Lim Suat Lim has been an Executive Vice President and the Chief Financial Officer of the company
since 2013. Prior to this, she served as the Senior Vice President of Finance from 2011 to 2013. She also
held various senior management positions in Finance at Hewlett Packard. She also served as a Senior
Director, the Head of Finance for Singapore, South East Asia and Asian Emerging Countries at Hewlett
Packard.

Wong Lup Wai

Board:Senior Management
Job Title:Chief Operating Officer, Executive Vice President
Since:2014

Mr. Wong Lup Wai has been an Executive Vice President and Chief Operating Officer of the company
since 2014. Prior to this, he served as the Country Managing Director for Philips Singapore from 2009 to
2012.

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Major Products & Services

Major Products & Services

MAJOR PRODUCTS & SERVICES

Hyflux is a provider of water treatment solutions. The key products and services offered by the company
include:

Products:

Membrane and Systems

Filtration and Purification Products

Services:

Seawater Desalination
Raw Water Purification
Wastewater Cleaning
Water Recycling
Water Reclamation
Membrane and Systems Sales
Operations and Maintenance
Renewable Resources
Track Record
Capital Management

Brands:

Kristal
FerroCep
ELO

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SWOT Analysis

SWOT Analysis

SWOT ANALYSIS
Hyflux provides construction and engineering services for water treatment plants. The companys
improved operating performance, strong project portfolio, strong order book and focus on R&D are its
major strengths, even as substantial debt remains as an area of concern. Going forward, foreign currency
fluctuations, rising labor costs and strikes in China and government contract compliance may impact the
companys performance. However, positive outlook of Singapore construction and Chinese construction
industries and new contract wins are likely to present new growth opportunities to the company.

Strength Weakness

Focus on R&D Substantial Debts

Strong Order Book
Strong Project Portfolio
Strong Operating Performance
Opportunity Threat

Positive Outlook for Singapore Construction Industry Government Contract Compliance

Positive Outlook for Chinese Construction Industry Foreign Currency Fluctuations
New Contract wins Rising Labor Costs and strikes in China

Strength

Focus on R&D

Hyflux focuses on investment in new technologies to develop high performance, energy-efficient

products. The companys R&D activities include planning or design for the production of new or improved
products and processes. The company operates R&D centers in Singapore and China, involved in
designing and development of new membrane applications, products and systems. In FY2015, the
company has invested in Kaqun Europe Zrt, a water technology company, which enables the company to
produce highly oxygenated water. It also helps the company to manufacture, sell and distribute drinking
water bottles under the brand name ELO in Asia Pacific, the Middle East and African regions, through a
newly established entity, ELO Water in which the company owns 70% stake and 30% owned by Kaqun
Europe. In addition, the company is focused on improving the existing membrane developments through
collaborations with internationally-recognized research experts, reputable universities and renowned
research institutions worldwide. Therefore, sustained focus on R&D helps the company to serve the
changing market needs, and enhance its top-line performance.

Strong Order Book

A strong order backlog ensures future revenue for the company. In FY2015, Hyflux recorded EPC order
backlogs worth SGD995 million. In October 2015, the company along with its consortium partner,

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SWOT Analysis

Mitsubishi Heavy Industries, Ltd was selected by the National Environment Agency to establish a new
waste-to-energy plant in Singapore, for the period of 25 years, from 2019 to 2044. In March 2015, the
company was awarded a contract worth SGD260 million from Oman Power and Water Procurement
Company to develop an independent water project at Quriyat area of Oman for a period of 20 years from
2017 to 2037. Consequently, the company has guaranteed sources of future revenue, which will enable it
to invest in new technology and expand its operations.

Strong Project Portfolio

The projects of the company enable it to grow and strengthen its portfolio of assets. The company has
undertaken several development projects for bringing in new opportunities for itself. The company
undertook the initiative of development of Magtaa Desalination Plant which has a capacity of 500,000
m3/day, is located in Algeria. Tuaspring Integrated Water and Power Project located in Singapore has a
capacity of 318,500 m3/day and 411MW, located in Singapore. Souk Tleta Desalination Plant in Algeria
has a capacity of 200,000 m3/day, and Zunyi Wastewater Treatment Plant in China has a capacity of
150,000 m3/day. Moreover, SingSpring Desalination Plant is located in Singapore and has a capacity of
136,380 m3/day. This helps the company to gain more projects from both public and private sectors in the
future which enhances the name and fame of the company paving the way to increase revenue.

Strong Operating Performance

Hyflux recorded a strong operating performance in FY2015, during which it recorded revenue of SGD4.4
billion, with an annual growth of 38.53%, at a CAGR of 1.53% during 2011-2015. The companys
operating margin was 22.7% in FY2015, which was higher than competitors such as Veolia
Environnement SA (Veolia Environment) and Suez Environnement SA (Suez), which reported respective
operating margins of 4.1% and 6.2%. A strong operating performance helps enhance investor confidence
and improve the companys growth prospects.

Weakness

Substantial Debts

Hyflux has substantial debts, which may adversely affect its operations. The company reported total debt
of SGD1.4 billion during FY2015, representing an annual increase of 25.7%, over its previous years debt
of SGD1.1 billion. Moreover, the companys debt to equity ratio increased from 0.85 in FY2014 to 1.1 in
FY2015. The significant increase in debt limits its ability to obtain additional financing in future for working
capital, and for other strategic initiatives. Substantial debts may adversely affect the companys
operations and may further weaken its financial position.

Opportunity

Positive Outlook for Singapore Construction Industry

Positive outlook for Singapore construction industry may provide new opportunities for Hyflux. According

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SWOT Analysis

to in-house research, the Singapore construction industry is expected to value SGD43.6 billion in 2019,
improving at a CAGR of 2.48% during 2015 and 2019 (forecast period). The market is expected to driven
by government investments in transport and tourism infrastructure through launch of projects and
focusing on developing renewable energy sources. Residential construction market is expected to record
a CAGR of 2.64% during the forecast-period and value SGD15.7 billion in 2019. This market is expected
to expect to driven by the rising population and positive developments in economic conditions.
Commercial construction market is expected to record a forecast period CAGR of 5.56% and value
SGD4.0 billion in 2019. This market is expected to support by the tourism and retail industries and
Government Land Sale (GLS) program. Infrastructure construction industry is expected to record a CAGR
of 7.03% during the forecast period and value SGD6.5 billion in 2019. This market is expected to support
by the governments investments in public transport infrastructure and transport infrastructure including
construction of the Kuala Lumpur-Singapore High-Speed Rail (HSR), the North-South Expressway (NSE)
and Mass-Rapid-Transit (MRT) Master plan-Downtown Line. The industrial and institutional construction
markets are expected to forecast period CAGR of 3.61% and 3.10% and value SGD8.4 billion and
SGD5.7 billion in 2019 respectively. These markets are expected to driven by growing industrial and
manufacturing activity and plans to develop institutional buildings, healthcare and research facilities.
Therefore, the company may benefit from this growing market by gaining new contracts in Singapore and
increase its revenues.

Positive Outlook for Chinese Construction Industry

The positive outlook for the Chinese construction industry may provide new opportunities for Hyflux.
According to in-house research, the construction industry in china is expected to post a CAGR of 4.99%
during 20152019 (forecast period) and reaches a value of CNY25.2 trillion in 2019. The industry is
expected to increase by rapid urbanization, industrialization, rising disposable income and population
growth. In addition, a government initiative to expand the water and transport infrastructure is also
expected to support the construction industry. Residential construction market is expected to grow at
CAGR of 6.62% during the forecast period and reach CNY12.2 trillion in 2019. This market is expected to
grow due to growing population and urbanization and the low unemployment rate in China. Infrastructure
construction market is expected to grow at a CAGR of 9.55% and value CNY4.1 trillion by 2019. This
market is expected to driven by government initiatives to invest in road, rail, airport and water
infrastructure projects. In addition, National Development and Reform Commission (NDRC), is also
expected to offer 1,043 public-private partnerships (PPP) infrastructure projects with an investment of
CNY2 trillion. Industrial construction market is expected to post a CAGR of 5% over the forecast period
and reach a value of CNY1.6 trillion in 2019. This market is expected to support by strategic investments
in manufacturing plants, chemical and pharmaceutical plants, and metal and material production and
processing plants categories. The Commercial industrial market is expected to grow at a forecast-period
CAGR of 6.41% and reach a value of CNY2.8 trillion by 2019. The growth in this market will be supported
by expansion of construction activities in retail buildings, office buildings, and leisure and hospitality
buildings. Institutional construction market is forecasted to grow at a CAGR of 6.34% to reach a value of
CNY872.9 billion by 2019. It is expected to driven by public initiatives to increase expenditure on
healthcare and educational sector and by population growth and urbanization which is estimated to
increase the demand for schools, healthcare facilities and government buildings.

New Contract wins

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SWOT Analysis

Hyflux received various contracts which will expand its existing operations and strengthen market
position. In April 2016, the company was awarded a contract from the General Authority for the Suez
Canal Economic Zone (SCZone) to construct the Ain Sokhna Integrated Water and Power Project in
Egypt for US$500 million. In January 2016, the company's subsidiary Hydrochem Saudi Ltd., secured a
contract worth US$50.4 million from Snamprogetti Saudi Arabia Co Ltd, to design, manufacture and
deliver a seawater reverse osmosis and sulphate removal facilities package for the Khurais Central
Processing Facility in Khurais, Saudi Arabia. In June 2015, the company's wholly-owned subsidiary
Hydrochem Saudi Limited was awarded contract worth US$48 million from the state-owned Saline Water
Conversion Corporation to design, build and supply a containerised desalination system with a total
designed capacity of 30,000 cubic metres per day to the Kingdom of Saudi Arabia. In March 2015, The
company was awarded a contract worth SGD260 million contract from Oman Power and Water
Procurement Company to develop an independent water project at Quriyat area of Oman. Therefore, the
company has a strong revenue source for the years ahead, which is expected to help it to invest in new
technologies and expand its business operations.

Threat

Government Contract Compliance

The government contracts of Hyflux are subject to several intricate government procurement laws and
regulations, apart from the routine audits of contract pricing. The results of such investigations may lead
to administrative, civil, or criminal proceedings, the ultimate outcome of which could be fines, penalties,
repayments, or compensatory or treble damages. The governments regulations dictate that certain
findings against a contractor may lead to a refund, payment of significant damages, or contract
cancellation or debarment from doing business with the government. The suspension or debarment of
business could have a significant adverse effect on the companys financial performance. Moreover, the
government contracts are subject to postponement, cancellation or termination of various programs, due
to any change in the government/defense priorities. Such contract terminations or cancellations by the
government may impact the companys operations.

Foreign Currency Fluctuations

Unfavorable changes in foreign currency exchange rates are likely to increase the expenses for the
company. Hyflux has operations in Asia, the Middle East and North Africa and recorded 62% of its
revenue from international customers during FY2015. Currency Fluctuations may impact the company's
competitive position against its close competitors Puncak Niaga Holdings Berhad and Beijing Enterprises
Water, in turn affecting its profitability.

Rising Labor Costs and strikes in China

Rising labor costs and strikes in China may impact the companys operations. According to the China
Labour Bulletin (CLB) report, in April 2016, the minimum wage rates in Shanghai increased by 8.4% to
CNY2,190 per month; and hourly rate from CNY18 to CNY19 per hour. In addition, in November 2015,
the minimum wage in Heilongjiang increased to CNY1,450 per month. In July 2015, 14 provinces and
municipalities increased the minimum wage: Guangdong increased its monthly minimum wage by 19% to

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SWOT Analysis

CNY2,500; Shenzhen by 12.3% to CNY2,030; Beijing by 10.3% to CNY1,720; Shanghai by 11% to

CNY2,020; and Tianjin by 10.1% to CNY1,850. Additionally, labor strikes in the country may impact cost
structure of the companies. In 2015, CLB reported a total of 2,774 incidents compared with 1,379
incidents in 2014. These strikes were primarily due to non-payment of wages in construction,
manufacturing and mining industries. The construction industry accounted for 36% all incidents,
manufacturing 32%, transport 9%, services 9%, mining 4%, education 4%, retail 2% and others 5%. In
addition, China recorded 1,050 strike incidents during December 2015 and February 2016 which includes
90% related to the non-payment of wages. CLB reports the highest labor unrest was reported in
Guangdong, Henan, Shandong and Hebei regions. Construction industry accounted for 55% of all
protests, manufacturing 23% and mining 5.6%. Moreover, the Chinese government announced its plans
to lay off 1.8 million workers in the coal and steel industries in the next few years, and expects to increase
worker protests in these industries. Therefore, frequent labor strikes and rising labor costs may negatively
impact the company.

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Top Competitors

Top Competitors

TOP COMPETITORS
The following companies are the major competitors of Hyflux Ltd

Beijing Enterprises Water Treatment Limited

Degremont SAS
GE Water & Process Technologies
Koch Membrane Systems, Inc.
MWH Global, Inc.
Puncak Niaga Holdings Berhad
Veolia Water

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Company View

Company View

COMPANY VIEW
A statement by Ms. Olivia Lum, the Chairman and Chief Executive Officer of the company is given below.
This statement is taken from the companys 2015 Annual Report.

Against the backdrop of falling oil prices, China recording its slowest growth in 25years and coupled with
global market volatility, 2015 has been a challenging year for Hyflux. Despite these headwinds, we
remained resilient and secured new strategic projects, ventured into new businesses and commissioned
a numberof projects during the year. MESSAGE FROMEXECUTIVE CHAIRMAN& GROUP
CHIEFEXECUTIVE OFFICERand its consortium partner Mitsubishi Heavy Industries signed a 25-year
waste-to-energy(WTE) services agreement with Singapores National Environment Agency (NEA) to
provide3,600 tonnes per day of incineration capacity from the countrys sixth and largest WTE plant,
TuasOne WTE project, which will be developed on a design-build-own-operate model. In the Middle East,
we signed a 20-year water purchase agreement with Oman Power and Water Procurement Company
SAOC to supply desalinated water from the 200,000 m3/day capacity Qurayyat IWP which Hyflux will
design, build, own and operate in the Sultanate ofOman. Construction is currently underway. Gaining
positive momentum in the region, we also secured two projects in the Kingdom of Saudi Arabia (KSA)
the first to supply a containerized desalination solution to KSA and the second to design, manufacture
and supply a seawater reverse osmosis and sulphate removal facilities package to Khurais, Saudi Arabia.
Further extending our presence in the Middle East, Hyflux was awarded a letter of intent by the General
Authority for the Suez Canal Economic Zone to construct the Ain Sokhna Integrated Water and Power
Project. This is our first integrated water and power project abroad and demonstrates our ability to put
together an innovative solution that is recognised internationally. As part of our asset light strategy and to
recycle capital for new investments, we unlocked valueand divested our entire stake in five water and
wastewater treatment plants in China to Tus Water Group Limited, a new joint venture with Tuspark TSI,
of which we own 25% stake. We are committed to delivering sustainable and innovative environmental
solutions for municipalities and industries worldwide to address the global resource Amid the challenges,
we delivered a respectable set of results in 2015. Our Group challenge. Revenue stood at S$445.2 million
in 2015, up 39% from S$321.4 million last year, contributed mainly by the Qurayyat Independent Water
Project (IWP) in the Sultanate of Oman. Profit after tax and minority interests (PATMI) was S$41.3 million,
down 28% compared with S$57.5 million in 2014. The lower PATMI was mainly due to lower level of
divestment activities in 2015 compared with 2014.In Singapore, Hyfluxs 411 MW combined cycle gas
turbine power plant co-located with Tuaspring Desalination Plant has been connected to the national
power grid since August 2015. Testing and commissioning were successfully completed with Plant
Commercial Operation Date achieved in March 2016. Meanwhile, Hyflux and its consortium partner
Mitsubishi Heavy Industries signed a 25-year waste-to-energy (WTE) services agreement with
Singapores National Environment Agency (NEA) to provide 3,600 tonnes per day of incineration capacity
from the countrys sixth and largest WTE plant, TuasOne WTE project, which will be developed on a
design-build-own-operate model. In the Middle East, we signed a 20-year water purchase agreement with
Oman Power and Water Procurement Company SAOC to supply desalinated water from the 200,000
m3/day capacity Qurayyat IWP which Hyflux will design, build, own and operate in the Sultanate of
Oman. Construction is currently underway. Gaining positive momentum in the region, we also secured
two projects in the Kingdom of Saudi Arabia (KSA) the first to supply a containerized desalination
solution to KSA and the second to design, manufacture and supply a seawater reverse osmosis and
sulphate removal facilities package to Khurais, Saudi Arabia. Further extending our presence in the

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Hyflux Ltd
Company View

Middle East, Hyflux was awarded a letter of intent by the General Authority for the Suez Canal Economic
Zone to construct the Ain Sokhna Integrated Water and Power Project. This is our first integrated water
and power project abroad and demonstrates our ability to put together an innovative solution that is
recognised internationally. As part of our asset light strategy and to recycle capital for new investments,
we unlocked valueand divested our entire stake in five water and wastewater treatment plants in China to
Tus Water Group Limited, a new joint venture with Tuspark TSI, of which we own 25% stake.

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Hyflux Ltd
Locations And Subsidaries

Locations And Subsidaries

LOCATIONS AND SUBSIDARIES

Head Office

Hyflux Ltd
80 Bendemeer Road
Hyflux Innovation Centre
Singapore City
Singapore City
SGP
Phone:65 6 2140777
Fax:65 6 2141211
www.hyflux.com

Other Locations and Subsidiaries

Bendemeer Infrastructure Pte Ltd Eflux Singapore Pte Ltd

Hyflux Building 202 Kallang Bahru
202 Kallang Bahru Hyflux Building
Singapore SGP
Singapore
SGP
Elowater Malaysia Sdn Bhd Hydrochem (S) Pte Ltd.
Unit A5-1, Level 5, Block A, Bangunan PanGlobal 202 Kallang Bahru
No. 1A, Jalan Tandang Hyflux Building
Petaling Jaya Singapore
Petaling Jaya Singapore
CHN SGP
Phone:60 3 77857085
Fax:60 3 77858482
Hydrochem Saudi Ltd Hyflux CEPAration B.V.
SAU Lage Dijk 29 B
Helmond
Helmond
NLD
Phone:31 492 565330
Fax:31 492 590010
Hyflux Engineering (India) Private Limited Hyflux Engineering Pte Ltd
No. 156, PH Road Hyflux Building
Kilpauk 202 Kallang Bahru
Chennai Singapore
Tamil Nadu Singapore
Chennai SGP

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Hyflux Ltd
Locations And Subsidaries

Tamil Nadu
IND
Phone:91 44 45428888
Fax:919500077077
Hyflux Ltd Hyflux Ltd
1217 Dongfang Road 1517 Central Plaza
Lujiazui Financial Service Plaza 188 Jiefangbei Road
Level 5 Heping District
Shanghai Tianjin
Shanghai Tianjin
CHN CHN
Hyflux Ltd Hyflux Ltd
2nd Floor, Hari Krupa Rue Said Hales
No: 71/1, McNichols Road El Mouradia
Chetpet El Mouradia
Chennai DZA
Tamil Nadu
Chennai
Tamil Nadu
IND
Phone:91 44 42867101
Fax:91 44 42845056
Hyflux Ltd Hyflux Newspring Construction Engineering
Unit A5-1, Level 5, Block A (Shanghai) Co., Ltd.
Bangunan PanGlobal No.99, Juli Rd
No. 1A, Jalan Tandang Zhangjiang High-Tech Park
Petaling Jaya Shanghai
Selangor Shanghai
Petaling Jaya CHN
Selangor Phone:86 21 50805118
MYS Fax:86 21 50805128
Hyflux Water Trust Hyflux Water Trust Management Pte Ltd
Hyflux Building 202 Kallang Bahru
202 Kallang Bahru Hyflux Building
Singapore City Singapore
Singapore City Singapore
SGP SGP
www.hyfluxwatertrust.com
Ningxia Hypow Bio-Technology Co., Ltd. SinoSpring Utility Ltd
Shizuishan Industrial Park British Virgin Islands
Shizuishan British Virgin Islands
Shizuishan VGB
CHN
Phone:86 952 3615888
Fax:86 952 3615880

Hyflux Ltd Page 21

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Hyflux Ltd
Locations And Subsidaries

Spring China Utility Ltd. Tuaspring Pte Ltd

British Virgin Islands SGP
British Virgin Islands
VGB

Hyflux Ltd Page 22

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Hyflux Ltd
Financial Overview

Financial Overview

FINANCIAL OVERVIEW

Summarized Statement
*Note: Eliminations not included, all figures in Million except per share data.

Parameters Currency 2011 2012 2013 2014 2015

Income Statements
Total Revenue SGD 481.98 654.77 535.79 321.39 445.24
Gross Profit SGD 153.58 173.38 195.41 82.28 155.78
Operating Income SGD 83.41 100.04 84.49 99.20 101.18
Net Income SGD 53.03 60.99 44.03 57.47 41.27
Diluted Normalized EPS SGD 0.04 0.05 0.05 -0.10 -0.03
Balance Sheet
Total Current Assets SGD 1,099.49 887.31 620.87 838.81 995.51
Total Assets SGD 2,032.47 2,189.70 2,396.51 2,741.72 3,025.36
Total Current Liabilities SGD 356.22 374.69 359.86 390.63 945.87
Total Liabilities SGD 1,111.87 1,329.11 1,513.93 1,404.53 1,737.89
Total Equity SGD 920.59 860.59 882.57 1,337.18 1,287.47
Total Common Shares SGD 858.68 825.22 827.01 816.99 785.29
Outstanding
Cash Flow
Cash from Operating Activities SGD -56.15 -233.99 -422.43 -226.13 -43.65
Cash from Investing Activities SGD -59.26 -39.44 -26.42 206.29 -103.59
Cash from Financing Activities SGD 534.65 130.99 168.04 210.19 59.54
Net Change in Cash SGD 419.33 -157.60 -266.43 199.46 -83.57

Detailed Statement
*Note: Eliminations not included, all figures in Million except per share data.

Parameters Currency 2011 2012 2013 2014 2015

Income Statements
Revenue SGD 473.50 654.77 535.79 321.39 445.24
Other Revenue, Total SGD 8.47 0.00 0.00 0.00 0.00
Total Revenue SGD 481.98 654.77 535.79 321.39 445.24
Cost of Revenue, Total SGD 319.92 481.39 340.38 239.12 289.47
Gross Profit SGD 153.58 173.38 195.41 82.28 155.78
Depreciation/ Amortization SGD 36.64 16.89 18.31 20.71 22.24
Unusual Expense (Income) SGD 0.00 6.77 23.80 11.87 0.00

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Hyflux Ltd
Financial Overview

Other Operating Expenses, Total SGD 42.00 49.68 68.81 -49.51 32.36
Total Operating Expense SGD 398.56 554.73 451.30 222.19 344.06
Operating Income SGD 83.41 100.04 84.49 99.20 101.18
Net Income Before Taxes SGD 62.04 76.17 51.62 53.06 38.78
Provision for Income Taxes SGD 6.32 11.46 8.73 -5.75 -6.70
Net Income After Taxes SGD 55.73 64.71 42.90 58.81 45.47
Minority Interest SGD -2.70 -3.72 1.13 -1.34 -4.20
Net Income Before Extra. Items SGD 53.03 60.99 44.03 57.47 41.27
Net Income SGD 53.03 60.99 44.03 57.47 41.27
Total Adjustments to Net Income SGD -16.00 -24.00 -24.00 -43.80 -49.65
Income Available to Com Excl SGD 37.03 36.99 20.03 13.67 -8.38
ExtraOrd
Income Available to Com Incl SGD 37.03 36.99 20.03 13.67 -8.38
ExtraOrd
Dilution Adjustment SGD 0.00 0.00 0.00 0.00 0.00
Diluted Net Income SGD 37.03 36.99 20.03 13.67 -8.38
Diluted Weighted Average Shares SGD 865.45 837.24 826.76 825.04 801.48
Diluted EPS Excluding ExtraOrd SGD 0.04 0.04 0.02 0.02 -0.01
Items
Diluted Normalized EPS SGD 0.04 0.05 0.05 -0.10 -0.03
DPS - Common Stock Primary SGD 0.03 0.03 0.02 0.02 0.02
Issue
Balance Sheet
Cash SGD 198.79 265.64 149.01 256.79 237.30
Short Term Investments SGD 463.57 224.83 92.80 181.91 76.09
Cash and Short Term SGD 662.36 490.47 241.80 438.70 313.38
Investments
Accounts Receivable - Trade, Net SGD 362.57 305.92 294.96 296.83 304.08
Total Receivables, Net SGD 384.81 321.90 313.07 316.26 357.71
Total Inventory SGD 44.02 59.13 47.64 53.78 68.90
Prepaid Expenses SGD 5.25 6.31 12.32 14.84 34.68
Other Current Assets, Total SGD 3.06 9.50 6.04 15.23 220.84
Total Current Assets SGD 1,099.49 887.31 620.87 838.81 995.51
Property/ Plant/ Equipment, Total SGD 245.92 263.63 267.57 214.61 254.96
- Gross
Accumulated Depreciation, Total SGD -57.35 -68.24 -87.14 -98.75 -98.53
Property/ Plant/ Equipment, Total SGD 188.57 195.39 180.44 115.86 156.43
- Net
Goodwill, Net SGD 11.12 1.59 0.00 0.00 0.00
Intangibles, Net SGD 187.69 257.62 834.43 1,021.08 1,153.42
Long Term Investments SGD 108.89 327.40 360.42 352.74 146.21

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Hyflux Ltd
Financial Overview

Note Receivable - Long Term SGD 433.87 518.74 398.39 403.71 546.27
Other Long Term Assets, Total SGD 2.83 1.66 1.95 9.51 27.53
Total Assets SGD 2,032.47 2,189.70 2,396.51 2,741.72 3,025.36
Accounts Payable SGD 184.34 258.26 154.63 133.89 178.21
Accrued Expenses SGD 13.96 17.59 36.32 53.27 53.56
Notes Payable/ Short Term Debt SGD 118.12 58.69 129.00 153.46 659.65
Current Port. of LT Debt/ Capital SGD 0.00 0.00 0.00 0.00 0.00
Leases
Other Current liabilities, Total SGD 39.81 40.15 39.90 50.00 54.45
Total Current Liabilities SGD 356.22 374.69 359.86 390.63 945.87
Long Term Debt SGD 712.30 932.92 1,137.98 979.33 764.30
Capital Lease Obligations SGD 0.00 0.00 0.00 0.00 0.00
Total Long Term Debt SGD 712.30 932.92 1,137.98 979.33 764.30
Total Debt SGD 830.42 991.61 1,266.98 1,132.80 1,423.95
Deferred Income Tax SGD 28.37 5.07 5.18 0.49 1.17
Minority Interest SGD 14.98 16.44 3.72 4.81 13.38
Other Liabilities, Total SGD 0.00 0.00 7.20 29.28 13.17
Total Liabilities SGD 1,111.87 1,329.11 1,513.93 1,404.53 1,737.89
Common Stock, Total SGD 604.74 605.20 606.89 607.26 607.26
Retained Earnings (Accumulated SGD 320.67 336.71 332.02 338.46 311.86
Deficit)
Treasury Stock - Common SGD -4.46 -51.48 -51.48 -61.94 -85.93
Other Equity, Total SGD -0.36 -29.82 -4.85 453.40 454.28
Total Equity SGD 920.59 860.59 882.57 1,337.18 1,287.47
Total Liabilities & Shareholders' SGD 2,032.47 2,189.70 2,396.51 2,741.72 3,025.36
Equity
Total Common Shares SGD 858.68 825.22 827.01 816.99 785.29
Outstanding
Total Preferred Shares SGD 4.00 4.00 4.00 4.00 4.00
Outstanding
Cash Flow
Net Income/ Starting Line SGD 62.04 76.17 51.62 53.06 38.78
Depreciation/ Depletion SGD 36.64 23.66 42.11 32.58 22.24
Non-Cash Items SGD 13.85 21.51 44.36 -81.30 20.80
Changes in Working Capital SGD -168.68 -355.33 -560.53 -230.47 -125.46
Cash from Operating Activities SGD -56.15 -233.99 -422.43 -226.13 -43.65
Capital Expenditures SGD -58.46 -45.17 -13.47 -13.80 -28.78
Other Investing Cash Flow Items, SGD -0.80 5.74 -12.95 220.09 -74.81
Total
Cash from Investing Activities SGD -59.26 -39.44 -26.42 206.29 -103.59

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Hyflux Ltd
Financial Overview

Financing Cash Flow Items SGD -17.50 -37.31 -34.82 419.70 -43.62
Total Cash Dividends Paid SGD -47.91 -47.65 -50.44 -51.58 -68.19
Issuance (Retirement) of Stock, SGD 394.10 -46.57 1.69 -10.08 -23.99
Net
Issuance (Retirement) of Debt, SGD 205.96 262.51 251.60 -147.85 195.34
Net
Cash from Financing Activities SGD 534.65 130.99 168.04 210.19 59.54
Foreign Exchange Effects SGD 0.09 -15.17 14.38 9.12 4.14
Net Change in Cash SGD 419.33 -157.60 -266.43 199.46 -83.57
Cash Interest Paid SGD 17.70 30.22 38.74 51.23 48.98
Cash Taxes Paid SGD 7.37 11.07 6.84 9.02 7.03

Summarized Interim Statement

Income Statements Currency Dec-2015 (3 Mar-2016 (3 Jun-2016 (3 Sep-2016 (3

Months) Months) Months) Months)
Gross Profit SGD 35.38 39.59 53.03 56.87
Diluted Normalized EPS SGD -0.02 -0.01 -0.02 -0.01
Operating Income SGD 13.21 23.26 20.56 37.93
Net Income SGD 3.26 7.32 2.62 21.48
Total Revenue SGD 156.49 248.35 259.99 295.88
Balance Sheet Currency Dec-2015 Mar-2016 Jun-2016 Sep-2016
Total Common Shares Outstanding SGD 785.28 785.28 785.28 785.28
Total Assets SGD 3,025.36 3,065.12 3,575.28 3,604.71
Total Liabilities SGD 1,737.89 1,836.50 1,869.63 2,113.20
Total Current Assets SGD 995.50 827.71 1,164.52 969.15
Total Current Liabilities SGD 945.87 756.60 716.83 858.33
Total Equity SGD 1,287.47 1,228.62 1,705.65 1,491.51
Cash Flow Currency Dec-2015 Mar-2016 (3 Jun-2016 (6 Sep-2016 (9
(12 Months) Months) Months) Months)
Cash from Financing Activities SGD 59.54 -65.11 323.87 215.39
Cash from Operating Activities SGD -43.65 -33.78 -135.74 -211.44
Net Change in Cash SGD -83.57 -132.84 142.06 -132.98
Cash from Investing Activities SGD -103.59 -32.36 -42.48 -132.26

Detailed Interim Statement

Income Statements Currency Dec-2015 (3 Mar-2016 (3 Jun-2016 (3 Sep-2016 (3

Months) Months) Months) Months)

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Hyflux Ltd
Financial Overview

Minority Interest SGD -1.09 -0.74 -1.58 -1.76

Income Available to Com Excl SGD -9.18 -5.08 -12.38 2.98
ExtraOrd
Net Income Before Extra. Items SGD 3.26 7.32 2.62 21.48
Gross Profit SGD 35.38 39.59 53.03 56.87
Diluted Normalized EPS SGD -0.02 -0.01 -0.02 -0.01
Provision for Income Taxes SGD -8.62 -2.29 0.95 1.44
Diluted Net Income SGD -9.18 -5.08 -12.38 2.98
Operating Income SGD 13.21 23.26 20.56 37.93
Net Income SGD 3.26 7.32 2.62 21.48
Depreciation/ Amortization SGD 6.44 9.50 17.55 17.77
Other Operating Expenses, Total SGD 15.73 6.83 14.93 1.17
Total Operating Expense SGD 143.28 225.09 239.43 257.95
Income Available to Com Incl SGD -9.18 -5.08 -12.38 2.98
ExtraOrd
DPS - Common Stock Primary Issue SGD 0.01 0.00 0.00 0.00
Net Income Before Taxes SGD -4.27 5.78 5.15 24.69
Cost of Revenue, Total SGD 121.11 208.75 206.96 239.01
Total Revenue SGD 156.49 248.35 259.99 295.88
Total Adjustments to Net Income SGD -12.44 -12.40 -15.00 -18.50
Diluted EPS Excluding ExtraOrd Items SGD -0.01 -0.01 -0.02 0.00
Diluted Weighted Average Shares SGD 789.98 785.28 785.28 785.36
Revenue SGD 156.49 248.35 259.99 295.88
Net Income After Taxes SGD 4.35 8.06 4.21 23.25
Balance Sheet Currency Dec-2015 Mar-2016 Jun-2016 Sep-2016
Long Term Debt SGD 764.30 1,024.50 1,084.55 1,146.00
Total Common Shares Outstanding SGD 785.28 785.28 785.28 785.28
Long Term Investments SGD 146.21 168.49 170.56 181.46
Other Liabilities, Total SGD 13.17 39.91 46.50 96.01
Total Debt SGD 1,423.95 1,397.92 1,341.13 1,455.83
Cash & Equivalents 313.71 181.47 494.13 231.19
Treasury Stock - Common SGD -85.93 -85.93 -85.93 -85.93
Intangibles, Net SGD 1,153.41 1,147.98 1,134.58 1,120.58
Minority Interest SGD 13.38 14.00 17.19 7.98
Notes Payable/ Short Term Debt SGD 659.65 373.42 256.59 309.82
Total Long Term Debt SGD 764.30 1,024.50 1,084.55 1,146.00
Total Liabilities & Shareholders' Equity SGD 3,025.36 3,065.12 3,575.28 3,604.71
Total Preferred Shares Outstanding SGD 4.00 4.00 4.00 4.00
Other Long Term Assets, Total SGD 27.53 31.58 38.75 45.74
Accounts Payable SGD 266.01 362.84 436.26 530.71

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Hyflux Ltd
Financial Overview

Deferred Income Tax SGD 1.17 1.50 4.56 4.88

Cash and Short Term Investments SGD 313.71 181.47 494.13 231.19
Accounts Receivable - Trade, Net SGD 403.91 371.36 395.78 482.69
Property/ Plant/ Equipment, Total - SGD 156.43 157.62 157.91 171.84
Net
Total Assets SGD 3,025.36 3,065.12 3,575.28 3,604.71
Total Liabilities SGD 1,737.89 1,836.50 1,869.63 2,113.20
Other Current Assets, Total SGD 211.87 211.87 211.87 195.16
Other Equity, Total SGD 454.28 413.19 895.41 675.44
Total Current Assets SGD 995.50 827.71 1,164.52 969.15
Total Current Liabilities SGD 945.87 756.60 716.83 858.33
Retained Earnings (Accumulated SGD 311.86 294.10 288.91 294.74
Deficit)
Total Equity SGD 1,287.47 1,228.62 1,705.65 1,491.51
Other Current liabilities, Total SGD 20.21 20.34 23.98 17.79
Total Inventory SGD 51.61 48.69 48.44 45.75
Note Receivable - Long Term SGD 546.27 731.74 908.97 1,115.94
Total Receivables, Net SGD 418.32 385.69 410.09 497.05
Common Stock, Total SGD 607.26 607.26 607.26 607.26
Cash Flow Currency Dec-2015 Mar-2016 (3 Jun-2016 (6 Sep-2016 (9
(12 Months) Months) Months) Months)
Total Cash Dividends Paid SGD -68.19 -12.93 -32.82 -47.18
Cash from Financing Activities SGD 59.54 -65.11 323.87 215.39
Cash from Operating Activities SGD -43.65 -33.78 -135.74 -211.44
Cash Taxes Paid SGD 7.03 1.21 2.82 4.11
Issuance (Retirement) of Debt, Net SGD 195.34 -20.23 -72.52 41.62
Financing Cash Flow Items SGD -43.62 -31.95 429.21 220.95
Net Change in Cash SGD -83.57 -132.84 142.06 -132.98
Non-Cash Items SGD 20.80 13.06 30.81 29.33
Cash Interest Paid SGD 48.98 32.16 30.82 48.46
Capital Expenditures SGD -28.78 -7.67 -14.02 -21.26
Net Income/ Starting Line SGD 38.78 5.78 10.93 35.62
Depreciation/ Depletion SGD 22.23 9.50 27.05 44.82
Foreign Exchange Effects SGD 4.14 -1.60 -3.59 -4.67
Issuance (Retirement) of Stock, Net SGD -23.99 0.00 0.00 0.00
Cash from Investing Activities SGD -103.59 -32.36 -42.48 -132.26
Other Investing Cash Flow Items, SGD -74.81 -24.68 -28.46 -111.00
Total
Changes in Working Capital SGD -125.46 -62.12 -204.53 -321.21

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Financial Overview

Capital Market Ratios

Key Ratios December 05,2016

P/E (Price/Earnings) Ratio 32.29
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation 26.51
and Amortization)
Enterprise Value/Sales 3.63
Enterprise Value/Operating Profit 15.99
Enterprise Value/Total Assets 0.53
Dividend Yield 0.03
Market Cap 384.79
Enterprise Value 1,617.40

Note: The above ratios are based on

the share price as of December
05,2016, they are absolute numbers
Annual Ratios

Key Ratios Unit Currency 2011 2012 2013 2014 2015

Growth Ratios
Sales Growth % -16.06 38.28 -18.17 -40.01 38.53
Operating Income Growth % -27.64 19.93 -15.54 17.41 1.99
EBITDA Growth % -22.89 -5.70 -24.85 5.49 -17.29
Net Income Growth % -40.09 15.02 -27.82 30.53 -28.18
EPS Growth % -61.88 6.87 5.29 -302.45 0.00
Working Capital Growth % 96.77 -31.03 -49.08 71.71 -88.93
Equity Ratios
EPS (Earnings per Share) USD 0.04 0.04 0.02 0.02 -0.01
Dividend per Share USD 0.03 0.03 0.02 0.02 0.02
Dividend Cover Absolute 1.54 1.38 1.05 0.72 -0.61
Book Value per Share USD 1.07 1.04 1.07 1.64 1.64
Cash Value per Share USD 0.00 0.00 0.00 0.00 0.00

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Financial Overview

Profitability Ratios
Gross Margin % 31.86 26.48 36.47 25.60 34.99
Operating Margin % 17.31 15.28 15.77 30.87 22.72
Net Profit Margin % 11.00 9.32 8.22 17.88 9.27
Profit Markup % 48.01 36.02 57.41 34.41 53.81
PBT Margin (Profit Before Tax) % 12.87 11.63 9.63 16.51 8.71
Return on Equity % 5.76 7.09 4.99 4.30 3.21
Return on Capital Employed % 4.98 5.51 4.15 4.22 4.87
Return on Assets % 2.61 2.79 1.84 2.10 1.36
Return on Fixed Assets % 8.94 7.68 4.76 5.21 4.98
Return on Working Capital % 11.22 19.52 32.37 22.13 203.84
Cost Ratios
Operating Costs (% of Sales) % 82.69 84.72 84.23 69.13 77.28
Administration Costs (% of Sales) % 0.00 0.00 0.00 0.00 0.00
Liquidity Ratios
Current Ratio Absolute 3.09 2.37 1.73 2.15 1.05
Quick Ratio Absolute 2.96 2.21 1.59 2.01 0.98
Cash Ratio Absolute 1.86 1.31 0.67 1.12 0.33
Leverage Ratios
Debt to Equity Ratio Absolute 0.90 1.15 1.44 0.85 1.11
Net Debt to Equity Absolute 1.12 1.46 1.60 1.04 1.29
Debt to Capital Ratio Absolute 0.50 0.55 0.62 0.48 0.68
Efficiency Ratios
Asset Turnover Absolute 0.24 0.30 0.22 0.12 0.15
Fixed Asset Turnover Absolute 2.56 3.35 2.97 2.77 2.85
Inventory Turnover Absolute 7.27 8.14 7.14 4.45 4.20
Current Asset Turnover Absolute 0.44 0.74 0.86 0.38 0.45
Capital Employed Turnover Absolute 0.52 0.76 0.61 0.24 0.35
Working Capital Turnover Absolute 0.65 1.28 2.05 0.72 8.97
Revenue per Employee USD 0.00 0.00 0.00 0.00 178,096.40
Net Income per Employee USD 0.00 0.00 0.00 0.00 16,509.20
Capex to Sales % 12.13 6.90 2.51 4.29 6.46
R&D to Sales % 0.00 0.00 0.00 0.00 0.00

Interim Ratios

Key Ratios Currency December March June September Ratio Type

01,2015 01,2016 01,2016 01,2016
EPS (Earnings per SGD -0.01 -0.01 -0.02 0.00 Equity Ratios

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Financial Overview

Share)
Dividend per Share SGD 0.01 0.00 0.00 0.00 Equity Ratios
Book Value per Share SGD 1.64 1.57 2.17 1.90 Equity Ratios
Current Ratio Absolute 1.05 1.09 1.63 1.13 Liquidity Ratios

Hyflux Ltd Page 31

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