The document discusses strategic recommendations for Hyflux. It recommends that Hyflux enhance its focus on the MENA and China markets in the short term. In the long term, it recommends expanding geographically into new markets, new market segments, and new industries such as algae biofuels. The recommendations are aimed at helping Hyflux achieve its strategic direction of growth through innovation.

1. Boldness. Entrepreneurship. Satisfaction.
Testimony
Caroline Ng| Hong DongSheng| Tobias Chen | Toh Yong Rui

2. Key Issues
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
What is the Strategic Direction for Hyflux?
How to Achieve it?

3. Situational Analysis
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Profit Future
SBU Margin
Growth (%)
Potential (x2)
Competition
Water
Business
Specialty
Materials
Business
Industrial
Manufacturing
Process
Energy
Recovery
Business
Favorable Unfavorable

4. Situational Analysis
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Profit Future
SBU Margin
Growth (%)
Potential (x2)
Competition
Water
Business
Specialty
Materials
Business
Industrial
Manufacturing
Process
Energy
Recovery
Business
Favorable Unfavorable

5. Situational Analysis
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Profit Future
SBU Margin
Growth (%)
Potential (x2)
Competition
Water
Business
Specialty
Materials
Business
Industrial
Manufacturing
Process
Energy
Recovery
Business
Favorable Unfavorable

6. Situational Analysis
Value Short Term Long Term
Financials Implementation Conclusion
Proposition Plans Plans
Geographic Future Population Population Prior
Competition
Region Potential (x2) Served Unserved Experience
North America
Latin America
Western Europe
Eastern Europe
Africa/Middle East
Asia Pacific

7. Situational Analysis
Value Short Term Long Term
Financials Implementation Conclusion
Proposition Plans Plans
Geographic Future Population Population Prior
Competition
Region Potential (x2) Served Unserved Experience
North America
Latin America
Western Europe
Eastern Europe
Africa/Middle East
Asia Pacific

8. Key Issues
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Strategic Direction for Hyflux
Industries Geographic Market
1. Seek innovative methods to stay competitive
GROWTH
2. Achieve Goal to become cost leader
3. Increase reach

9. Recommendations: E2
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Enhance
• Streamlining our Focus
E.g.: MENA/China
Expand
• Expanding Geographically
• Expanding into New Markets
• Expanding into New Industries

10. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp
CHINA
Human Resource

11. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity

12. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp
Human Resource

13. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
11th 5-year Plan:
RMB 1 Trillion
Economic Viability
Management Exp
Human Resource

14. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp
Human Resource

15. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp
Human Resource

16. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition

17. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition

18. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition

19. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp MENA

20. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity

21. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp

22. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Water Scarcity
Political Stability
Economic Viability
Management Exp

23. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition

24. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Renewable Energy
• Growing environmentalism and
need for sustainable economic
growth
• Need for alternative sources of
renewable energy
• Current energy crops compete
with food crops for land, resulting
in food shortages & deforestation

25. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Bio-Fuels
• Soaring demand for bio-fuel
and ethanol
• Global economies are turning to
bio-fuel as a solution to
soaring energy needs

26. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Bio-Fuels
• Soaring demand for bio-fuel
and ethanol
• Global economies are turning to
bio-fuel as a solution to
soaring energy needs

27. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Leverage
• Leveraging on proprietary
Membrane Technology
• Leveraging on existing
experience with Palm Oil
Membrane System (POMS)
• Extend current knowledge and
processes for Algae Bio-Fuel

28. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
R&D Objectives
• Research and develop a Algae
Membrane System (AMS)
• Develop a safe, fast, and cost-
effective solution
• Target >= 95% extraction
Algae Membrane Systems
• Development target = 5 years

29. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Algae Oil Extraction Step 1: Cultivating Algae
• Other methods separate algae
from water by settling and
adding flocculating agents. Step 2: Harvest
• Time consuming
• Membrane system can be
Step 3: De-Watering
applied to rapidly filter algae
from water
Step 4: Extraction

30. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Algae Oil Extraction Step 1: Cultivating Algae
1. Expeller/Press
(70% extraction)
2. Hexane Solvent Method
Step 2: Harvest
AMS will enable extraction
(95% extraction) similar to the HSM without
Carcinogens & explosive the use of dangerous
Step 3: De-Watering
chemicals
3. Supercritical Fluid Extraction
(Near 100% extraction)
Very specialized equipment
Step 4: Extraction
needed

31. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Geographic Rural AMS
Geographic Expansion
• Leverage on experience serving
major cities in China and MENA
to enter other Asian markets
• India
• Indonesia
• Thailand
• Vietnam
• Market Size: $10.195bn
• Growth Rate: 8.9% (Highest)

32. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Geographic Rural AMS
Rural Expansion Percentage of Urban/Rural
Markets Served
• Significantly underserved
market with high potential for 100%
90%
growth 80% 93% 94% 91%
70%
• Issues include: 60% 68% 80% 70%
50%
• Dispersed population Urban
40%
30% Rural
• Lower income
20%
10%
0%
East-Asia South- SE-Asia
Asia

33. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Geographic Rural AMS
Rural Expansion USD/Cubic Metre of Water
• Lower costs achieved in the
3
past few years and continued
2.5
improvements will allow for
2
rural proliferation
USD 1.5 Cost
• Smaller plant designs will allow
1
to serve dispersed rural
0.5
population
0
2004 2005 2006 2007 2008
Year

34. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Geographic Rural AMS Consumer Products
Algae Oil Extraction
• Excessive algae growth
(eutrophication) in major waer
bodies in China
• Taihu (3rd); Chaohu (5th); and
Dianchi (6th) lake
• USD436m spent on cleaning
Dianchi lake alone
• Merge waste-water plants and
algae extraction technology
• Filtered algae to be used for
bio-diesel

35. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Geographic Rural AMS Consumer Products
Pitcher P18
Consumer Products
Dragon Fly

36. Recommendations
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Geographic Rural AMS Consumer Products
Target Market: Middle Income
Group
Pitcher P18 Marketing Focus: ‘Family’’
Region: China + MENA
Expected Penetration: Low
Consumer Products
Problems
• Competition: Intensive
Dragon Fly
Eg. Diamond Water
Affordability
- Need to drive costs down
‘Enhance Strategy’
Product Awareness

37. Key Assumptions
Value Short Term Long Term
Financials Implementation Conclusion
Proposition Plans Plans
Municipal Contracts Industrials O&M
Value of each Contract: 10% Growth Rate over Revenue 10% of
the next 5 years project value, 15%
200-300Mil SGD
profit margin
Research &
Development
Expenditure increased
to 5% of revenue

38. Key Assumptions
Value Short Term Long Term
Financials Implementation Conclusion
Proposition Plans Plans
Income Statement in SGD
2,000,000
1,500,000
Total Revenue
SGD
1,000,000 Total Operating Expense
Net Income After Taxes
500,000
Materials is the main
0 cost, expected to stay
2009 2010 2011 2012 2013 at 60% of revenue
Year

39. Incremental NPV Analysis
Value Short Term Long Term
Financials Implementation Conclusion
Proposition Plans Plans
WACC 11.89% 11.39% 10.89% 10.39% 9.89%
NPV (in 000, SGD) 239,243 252,964 268,009 284,569 302,877
WACC 11.89% 11.39% 10.89% 10.39% 9.89%
NPV (in 000, SGD) 295,227 306,564 312,150 361,517 395,210
Scenario Worst Base Best
NPV (in 000, SGD) 236,988 268,009 292,834

40. Short-Term Growth
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
2010
2011
2012
2013
2014
Enhance
Short Term Plans 1
1. MENA 2
2. China 3
4

41. Long-Term Growth
Value Short Term Long Term
Financials Implementation Conclusion
Proposition Plans Plans
2010
2011
2012
2013
2014
Expand
1. New Geographic
Markets
2. New Market
Segments
3. New Industries
1
2
3

42. Long-Term Growth
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Enhance 2010
2011
2012
2013
2014
Short Term Plans
1. MENA
2. China
Expand
Long Term Plans
• New Geographic
Markets
• New Market Segments
• New Industries

43. Recommendations: E2
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Enhance
• Streamlining our Focus
E.g.: MENA/China
Expand
• Expanding Geographically
• Expanding into New Markets
• Expanding into New Industries

44. ~ Thank You ~
Boldness. Entrepreneurship. Satisfaction.
Testimony
Q&A
Caroline Ng| Hong DongSheng| Tobias Chen | Toh Yong Rui

45. ~ Complimentary
Boldness. Entrepreneurship. Satisfaction.
Testimony
Slides ~
Caroline Ng| Hong DongSheng| Tobias Chen | Toh Yong Rui

46. Complimentary Slides
1. Why not India?
2. Overdependence on China
3. Algae Business – Mode of Entrance
4. Why Algae Bio-Fuel?
5. Why target the rural population? Demand
6. How to target the rural population?
7. Palm Oil
8. Financials

47. Why Not India? Short Term
India – Lucrative Market
• Total Population: 1.48 Billion
• Percentage Served: 84%
• Water Dependency: 34%
Short Term Plans - Why NOT?
• Structural and bureaucratic impediments
• High distrust of foreign businesses
• Lack of Infrastructure
Long Term Plans
• Leverage on existing offices
• Establish Contacts
• Sourcing for potential partners
• Establishing partnerships with renowned
Indian Universities

48. Overdependence on China
NOT Over dependent
• Mutual Benefits to be reaped from successful relations
• Supplier and customer relations are strong
• Diversification (Geograhpic + Strategic Business Units)
E.g.: ‘Specialty Materials Business’ and ‘Energy Recovery Business’
EVEN If deemed to be over dependent
• Hyflux should grab this lucrative opportunity
- 1.3 Trillion Yen to be injected to boost China’s economy (Stimulus Package)
• Not placing all our eggs into one basket
- Expanding into other geographic regions ( Asia Pacific + Mena)
- Expanding into other businesses ( Algae)

49. Algae Business – Mode of Entrance
Joint Venture Strategic Greenfield
Alliances
• Share costs and risks • Share costs and risks • Full Profits
Pros
• Gain insider knowledge of • Gain insider • Leverage on current
country that we wish to knowledge of country expertise
enter that we wish to enter E.G Own 31 plants in China
• Full Control
• Difficult to find suitable • Difficult to find suitable • Bear full risks and
Cons partners partners responsibility
• Profits have to be shared • Profits have to be • High costs incurred
• Reputation of Partner shared • May not have first-hand
‘Spill over-effect’ • Share Control valuable knowledge of
• Share Control country

50. Why Algae Bio-Fuel?
Value
E - Enhance E - Expand Financials Implementation Conclusion
Proposition
Bio-Fuels Leverage R&D
Algae Bio-Fuel
• Companies are already using
algae to extract oil
• 10 – 100x higher oil / fuel
yields than other energy crops
• Algae can be grown anywhere
• Only energy crop capable of
completely replacing world’s
consumption of transportation
fuels

51. Why target the rural population? Demand
• Rural Markets - High Percentage Percentage of Urban/Rural
of Un-served Markets Markets Served
• High potential for growth
100%
E.g. India Rural Area ($1.9.Billion USD) 90%
80% 93% 94% 91%
• Changing trends: ‘Urbanization’ 70%
60% 68% 80% 70%
• Water Needs: High and Urgent 50%
Urban
40%
E.g.: ‘More than 200 Million people in India Rural
30%
do not have access to fresh water 20%
10%
0%
East-Asia South- SE-Asia
Asia

52. How to target the rural population?
Strategies used: Nuclear Desalination
• Client and location specific promotion
- Currently too expensive
• Joint or cooperative promotion..
- Plants can be built on a smaller scale - - -
• Bundling of inputs
- Presumed to be more cost effective in the
• Management of demand long run
• Developmental marketing - Requires less maintenance with proper
control mechanisms in place
• Unique selling proposition (USP)
• Extension services
• Business ethics
• Partnership for sustainability

53. Palm Oil
Direction for Palm Oil
• 15-step extraction process
• Complicated process is out of Hyflux’s
area of expertise
• Hyflux should focus on producing POMS
and selling it to Palm Oil Refiners
• Customers to Target:
• Wilmar International
• Sime Darby
• IOI Corp
• Astra Agro
• KL Kepong
• Golden Agri
• Asiatic Dev Asia
• London Sumatra

54. Balance Sheet
Balance
Sheet
(in
000
SGD) 2007 2008 2009 2010 2011 2012 2013
Cash & Equivalent 121,047 55,468 194,223 339,561 516,941 653,763 794,710
Lease Receivable 187 3,248 2,166 3,285 3,165 3,734 3,923
Contracts Work in Progress 93,257 93,987 123,994 138,994 153,994 168,994 183,994
Other Receivables 23,562 7,987 80,304 90,019 99,733 109,448 119,163
Impairment Losses (1,658) 0 (2,825) (1,584) (2,632) (2,407) (2,882)
Fixed Deposits 6,248 2,931 12,314 8,771 12,506 12,194 14,109
Advances to Suppliers 5,941 29,798 27,073 34,174 35,743 40,387 43,339
Staff Advances 680 597 1,498 1,220 1,607 1,623 1,844
Inventory 20,641 33,827 54,415 52,068 62,634 66,021 73,358
Trade Debtors 43,640 43,019 61,997 69,497 76,997 84,497 91,997
Note Recievables 4,372 2,007 8,592 6,095 8,712 8,486 9,824
Doubtful Debts (1,902) (4,009) (5,522) (5,651) (6,559) (7,034) (7,748)
Prepayments 3,549 1,868 7,110 5,176 7,283 7,143 8,239
Due from Related Parties- Trade 15,216 43,939 50,923 56,558 62,952 68,925 75,129
Due from Related Parties- Non
Trade 4,787 23,394 21,464 26,947 28,256 31,886 34,238
Assets Classified as Held for Sale 0 10,834 6,162 10,362 9,567 11,549 12,002
Total Current Assets 339,567 348,895 643,891 835,494 1,070,899 1,259,209 1,455,240

55. Balance Sheet
Balance
Sheet
(in
000
SGD) 2007 2008 2009 2010 2011 2012 2013
Plant and Machinery 18,391 20,940 43,251 48,483 53,715 58,948 64,180
Motor Vehicles 3,051 3,138 3,095 3,116 3,105 3,111 3,108
Computers 5,712 7,423 6,568 6,995 6,781 6,888 6,835
Office Equipment 1,794 2,154 1,974 2,064 2,019 2,042 2,030
Leasehold Property 22,408 24,779 23,594 24,186 23,890 24,038 23,964
Furniture and Fittings 1,013 1,435 1,224 1,330 1,277 1,303 1,290
Construction 26,865 18,492 56,299 63,110 69,920 76,731 83,542
Investment Property 2,373 2,244 2,309 2,276 2,292 2,284 2,288
Investment in Associates 85,783 94,716 90,250 92,483 91,366 91,924 91,645
Lease Receivable 9,570 194,204 126,774 194,884 186,681 220,905 231,781
Long Term Investments 7,917 908 4,413 2,660 3,536 3,098 3,317
Deferred Tax 1,218 2,799 2,009 2,404 2,206 2,305 2,256
Trade receivables 0 2,872 1,634 2,747 2,536 3,061 3,182
Lease prepayment 0 4,939 2,809 4,724 4,361 5,265 5,472
Goodwill 4,288 4,806 4,547 4,677 4,612 4,644 4,628
IP Rights 4,792 4,715 4,754 4,734 4,744 4,739 4,741
Development Cost 31,765 41,237 77,587 62,249 69,918 66,084 68,001
Licensing Fees 5,472 5,567 5,520 5,543 5,531 5,537 5,534
Service Concession
Arrangements 0 19,326 19,326 19,326 19,326 19,326 19,326
Amortisation of Intangibles (5,818) (9,128) (7,473) (8,301) (7,887) (8,094) (7,990)
Total Assets 566,161 796,461 1,114,350 1,375,183 1,620,829 1,853,345 2,074,365

56. Balance Sheet
Balance
Sheet
(in
000
SGD) 2007 2008 2009 2010 2011 2012 2013
Trade Creditors 55,022 214,651 234,837 324,744 379,790 452,267 516,029
Other Creditors 10,071 12,649 13,914 15,305 16,836 18,519 20,371
Accrued Expenses 7,676 9,603 8,640 9,121 8,880 9,001 8,941
Due to Related Parties- Trade 0 6,458 3,229 4,844 4,036 4,440 4,238
Due to Related Parties- Non Trade 1,796 11,530 6,663 9,097 7,880 8,488 8,184
Advance Payments 25,989 13,343 19,666 16,505 18,085 17,295 17,690
Interest Bearing Loans & Borrowings 5,245 50,245 45,021 63,679 63,233 73,407 77,737
Provision for Income Tax 202 5,925 3,064 4,494 3,779 4,137 3,958
Finance Lease 104 99 102 100 101 101 101
Total Current Liabilities 106,105 324,503 335,134 447,888 502,620 587,654 657,248
Interest Bearing Loans & Borrowings 193,266 207,819 200,543 204,181 202,362 203,271 202,816
Finance Lease 187 73 130 102 116 109 112
Term Loan - -
Total Long Term Debt 193,453 207,892 200,673 204,282 202,477 203,380 202,929
Minority Interest 7,295 10,352 10,352 10,352 10,352 10,352 10,352
Deferred Tax 2,875 6,260 6,260 6,260 6,260 6,260 6,260
Total Liabilities 309,728 549,007 552,419 668,782 721,709 807,646 876,789

57. Balance Sheet
Balance
Sheet
(in
000
SGD) 2007 2008 2009 2010 2011 2012 2013
Share Capital 95,820 99,118 99,118 99,118 99,118 99,118 99,118
Share Premium - -
Capital Reserves 1,064 7,204 7,204 7,204 7,204 7,204 7,204
Translation Reserve (1,815) 9,257 9,257 9,257 9,257 9,257 9,257
Hedging Reserve (4,222) (4,222) (4,222) (4,222) (4,222) (4,222) (4,222)
Employee Share Option
Reserve 9,419 12,971 12,971 12,971 12,971 12,971 12,971
Revenue Reserve 139,506 182,493 302,729 439,719 585,759 731,859 884,084
Total Equity 239,772 306,821 427,057 564,047 710,087 856,187 1,008,412

58. Income Statement
Income
Statement
(in
000
SGD)
Year 2007 2008 2009 2010 2011 2012 2013
Revenue
from
Construction
Contracts 181,906 544,972 669,972 857,472 1,044,972 1,357,472 1,669,972
Operating
&
Maintenance
Income 6,562 8,231 20,899 28,399 32,149 45,899 52,149
Sale
of
Goods 1,264 520 572 629 692 727 763
Finance
L ease
Income 1,387 0 0 0 0 0 0
Finance
I ncome 1,630 415 494 428 426 442 465
Licence
Fee 37 86 99 114 131 150 173
Total
Revenue 192,786 554,224 692,036 887,042 1,078,370 1,404,690 1,723,522
Changes
in
Inventory (1,246) (3,710) (4,575) (5,846) (7,130) (9,259) (11,393)
Raw
Materials 107,244 387,767 401,983 514,483 626,983 746,610 918,485
Personnel
Expenses 33,852 52,606 66,997 85,747 104,497 135,747 166,997
Depreciation 7,198 9,718 19,229 19,950 27,152 33,428 42,258
Other
Operating
Expenses
(includes
R&D) 9,369 30,388 69,431 89,774 108,849 141,762 174,174
Other
Operating
Income (10,913) (494) (5,704) (3,099) (4,401) (3,750) (4,076)
Total
Operating
Expense 145,504 476,275 547,362 701,010 855,950 1,044,537 1,286,445
Financial
Income
(HWT) 2,548 4,770 5,486 6,308 7,255 8,343 9,594
Financial
Expense (9,816) (10,604) (24,595) (24,081) (33,854) (41,050) (52,301)
Interest
Captalized 938 382 1,962 1,556 2,478 2,842 3,728
Fair
value
G ain
on
Financial
I nstruments (3,532) (680) (6,922) (4,965) (8,424) (9,401) (12,514)
Share
of
Associate
Results 1,277 (1,400) 1,491 (147) 1,073 581 1,215
Gain
on
Sale
of
Property,
Plant
&
Equip. (4) (42) (33) (54) (59) (81) (97)
Net
Income
Before
Taxes 38,693 70,375 122,063 164,649 190,889 321,385 386,702
Taxation (2,048) (8,157) (17,455) (23,545) (27,297) (45,958) (55,298)
Net
I ncome
After
Taxes 36,645 62,218 104,608 141,104 163,592 275,427 331,404

59. Income Statement
Income
Statement
(in
000
SGD)
2007 2008 2009 2010 2011 2012 2013
Revenue
from
Construction
Contracts 181,906 544,972 619,972 694,972 769,972 844,972 919,972
Operating
&
Maintenance
Income 6,562 8,231 12,399 13,899 15,399 16,899 18,399
Sale
of
Goods 1,264 520 572 629 692 727 763
Finance
L ease
Income 1,387 0 0 0 0 0 0
Finance
I ncome 1,630 415 494 428 426 442 465
Licence
Fee 37 86 95 104 114 126 139
Sales 192,786 554,224 633,532 710,033 786,604 863,166 939,738
Changes
in
Inventory (1,246) (3,710) (4,234) (4,738) (5,254) (5,763) (6,276)
Raw
Materials 107,244 387,767 371,983 416,983 461,983 506,983 551,983
Personnel
Expenses 33,852 52,606 61,997 69,497 76,997 84,497 91,997
Depreciation 7,198 9,718 17,794 16,170 20,007 20,808 23,279
Other
Operating
Expenses 9,369 30,388 33,251 38,013 41,705 45,992 49,952
Other
Operating
Income (10,913) (494) (5,704) (3,099) (4,401) (3,750) (4,076)
Total
Operating
Expense 145,504 476,275 475,088 532,825 591,037 648,767 706,860
Financial
Income
(HWT) 2,548 4,770 5,247 5,772 6,349 6,984 7,682
Financial
Expense (9,816) (10,604) (22,759) (19,518) (24,945) (25,552) (28,812)
Interest
Captalized 938 382 1,816 1,261 1,826 1,769 2,054
Fair
value
G ain
on
Financial
I nstruments (3,532) (680) (6,406) (4,024) (6,207) (5,852) (6,894)
Share
of
Associate
Results 1,277 (1,400) 1,380 (119) 791 361 669
Gain
on
Sale
of
Property,
Plant
&
Equip. (4) (42) (31) (44) (43) (51) (53)
Net
Income
Before
Taxes 38,693 70,375 137,691 160,535 173,337 192,058 207,523
Taxation (2,048) (8,157) (17,455) (23,545) (27,297) (45,958) (55,298)
Net
Income
A fter
Taxes 36,645 62,218 120,236 136,991 146,040 146,100 152,225

60. Cash Flow
2007 2008 2009 2010 2011 2012 2013
Net Income 38,693 70,375 120,236 136,991 146,040 146,100 152,225
Depreciation 7,198 9,718 17,794 16,170 20,007 20,808 23,279
Cost of Share Based Payments 3,131 3,552 3,342 3,447 3,394 3,420 3,407
Fair Value Gain on Financial Instruments 3,532 680 680 680 680 680 680
Sale of Partial Interest In JV (8,185) 0 0 0 0 0 0
Loss on Disposal Assets 4 42 40 41 40 41 40
Share of Associate (1,277) 1,400 1,400 1,400 1,400 1,400 1,400
Interest Expense 8,878 10,222 12,285
Interest Income (2,548) (4,770) (4,770) (4,770) (4,770) (4,770) (4,770)
Negative Goodwill (2,620) 0 0 0 0 0 0
Provision for Doubtful Debts 45 3,088 1,567 2,327 1,947 2,137 2,042
Provision for Stock Obsolesence 657 366 512 439 475 457 466
Goodwill Arising from Acquisition 242 0 0 0 0 0 0
Inventory (10,105) (13,543) (20,588) 2,348 (10,566) (3,386) (7,338)
Amount due for Contract W ork (44,834) (730) (22,782) (11,756) (17,269) (14,513) (15,891)
Trade Debtors (12,925) 241 (6,342) (3,051) (4,696) (3,873) (4,285)
Lease Receivable 65,261 (169,044) 67,430 (68,110) 8,203 (34,225) (10,875)
Lease Payment 0 (909) 2,130 (1,914) 362 (903) (207)
Other Debtors (13,572) (7,744) (10,658) (9,201) (9,930) (9,565) (9,747)
Due from Related Companies (2,153) (23,300) (12,727) (18,013) (15,370) (16,692) (16,031)
Trade Creditors 20,165 159,629 89,897 124,763 107,330 116,047 111,688
Other Creditors 4,341 4,506 4,424 4,465 4,444 4,454 4,449
Advance from Customers 22,631 (12,646) 4,993 (3,827) 583 (1,622) (520)
Derivative 111 0 0 0 0 0 0
Income Taxes Paid (2,138) (1,276) (17,455) (23,545) (27,297) (45,958) (55,298)
Cash from Operating Activities 74,532 29,857 231,404 148,882 205,008 160,036 174,716

61. Cash Flow
2007 2008 2009 2010 2011 2012 2013
Capital Expenditures (30,393) (18,792) (60,118) (74,397) (83,397) (92,397) (101,397)
Disposal of Assets 78 791 3,006 3,720 4,170 4,620 5,070
Sale of Subsidiary 16,059 0 0 0 0 0 0
Acq. of Subsidiaries (36,012) (36,012) (36,012) (36,012) (36,012) (36,012) (36,012)
Acquisition of associates (90,949) (5,869) (48,409) (27,139) (37,774) (32,457) (35,115)
Dividends Received 1,158 2,451 4,809 5,480 5,842 5,844 6,089
Acquisition of Intangibles (278) (30,006) (30,006) (30,006) (30,006) (30,006) (30,006)
Due from related parties (non-trade) 0 (45,199) (45,199) (45,199) (45,199) (45,199) (45,199)
Long Term Investment (1,919) 0 0 0 0 0 0
Interest Received 2,047 4,770 4,770 4,770 4,770 4,770 4,770
Cash from Investing Activities (140,209) (127,866) (207,159) (198,783) (217,606) (220,836) (231,800)

62. Cash Flow
2007 2008 2009 2010 2011 2012 2013
Issue of New Shares 4,678 3,298 0 0 0 0 0
Short Term Debt - Net - - 45,021 63,679 63,233 73,407 77,737
Proceeds from borrowings 168,291 100,510 134,401 204,181 202,362 203,271 202,816
Repayment of borrowings (27,532) (49,825) (52,316) (54,932) (57,679) (60,563) (63,591)
Proceeds/Term Loan - -
Net Interest Paid (8,878) (12,100) (8,971) (13,393) (13,280) (13,834) (14,028)
Interest Received from Derivatives 501 0 0 0 0 0 0
Payment of Dividends (7,016) (9,909) (4,809) (5,480) (5,842) (5,844) (6,089)
Share Issue Expenses - -
Dividends paid to shareholders of the Co 0 (609)
Minority Interest Distribution - -
Proceeds from Short Term Loans - -
Payment to Hire Purchase Creditors - -
Payment of Finance Lease (286) (119) 0 0 0 0 0
Cash from Financing Activities 129,758 31,246 113,325 194,055 188,794 196,438 196,846
Foreign Exchange Effects 1,139 1,184 1,184 1,184 1,184 1,184 1,184
Net Change in Cash 65,220 (65,579) 138,755 145,338 177,380 136,822 140,946