1H-FY2013 Results Presentation - 130805 - Final.pptx [Read...

YONGNAM HOLDINGS LIMITED

1H FY2013 Results Presentation

5 August 20131

CONTENTS

• Our Business

• Corporate Updates

• 1H FY2013 Financial Performance

• Prospects and Market Outlook• Prospects and Market Outlook

• Growth Strategies and Plans

2

Our Business

A well-established Structural Steel Contractor and

Specialist Civil Engineering Solutions Provider

Structural Steelworks:• One of the largest steel fabrication facilities in

Southeast Asia

• Leading steel specialist contractor with unparalleled

track record of iconic projects

• On-time delivery and with quality

• S1 category accreditation from Singapore Structural

Steel Society

Specialist Civil Engineering• Modular Strutting System meets increasingly stringent

design and project requirements

• Approximately 205,500 tonnes of strutting assets and

pipe piles

• Strong track record and high replacement cost of struts

are major barriers to entry

3

Our Business

• More than 40 years of experience in steel fabrication and

provision of engineering solutions

• Long established relationships with major reputable contractors:

• Takenaka Corporation • Samsung Corporation

• Taisei Corporation • Ssangyong E&C Co. Ltd

• Obayashi Corporation • Hyundai E&C Ltd• Obayashi Corporation • Hyundai E&C Ltd

• Penta Ocean • Daelim Industrial Co. Ltd

• Shimizu Corporation •Woh Hup Pte Ltd

• Dragages Singapore • Larsen & Toubro Ltd

• Sembawang E&C Pte Ltd

4

Our Footprint

Regional Presence:

1. Subsidiaries

• Singapore

•Malaysia

• Hong Kong

• Thailand

•Middle East

Projects Undertaken

Across the Region:

• Singapore

•Malaysia

•Middle East

• China

• Norway

Middle

East India Hong Kong

Thailand•Middle East

2. Project Office

• India

• Norway

• Brunei

• Philippines

• Thailand

• Japan

• Korea

• Hong Kong

• Pakistan

• India

Thailand

Malaysia

Singapore

5

Our Facilities

• Singapore

Total Land Area

Workshop Covered Area

Capacity (Normal Steel Structure)

Approximately 76,000 m2

20,250 m2

3,000 Tonnes per month

• Malaysia (Nusajaya, Johor)

Total Land Area

Workshop Covered Area

Capacity (Normal Steel Structure)

Approximately 109,103 m2

28,900 m2

3,500 Tonnes per month

• Total Staff Strength Approximately 2,000

6

Operations Team

CEO

&

Exec. Directors

Project Management

ProductionDesign &

EngineeringSales & Marketing

Project Directors

• C. Harendran

• Raymond Tan

• Cheong Hock Choon

• Sik Kay Lee

• Koh Eng Seng

Production Director

• Seow Soon Hock

�Singapore

General Manager

• Seow Khng Chai

�Malaysia

Engineering Directors

• Takashi Watabe

�Engineering

• Ho Wan Boon

�Technical

•Munetada Yamaji

�Design

Sr. Manager

• John Lim

• Our Key Personnel each has 30 or more years of experience in their

respective fields of expertise

• Supported by teams of qualified and experienced Project Managers,

Production Managers, Engineers, Detailers and Co-ordinators

7

Structural Steel – Track Record

• Singapore:

• Terminal 1, Changi

International Airport

• Suntec City

• Capital Tower

• National Library Building

• One Raffles Quay

• ION Orchard

• Marina Bay Sands

Integrated ResortIntegrated Resort

• Gardens by The Bay

• Civic, Cultural & Retail

Complex @ One-North

• Overseas:

• Brunei (Hangars)

• KLIA

• Suvarnabhumi International

Airport, Bangkok

• Dubai Metro Rail

• New Delhi International

Airport

• Mumbai International

Airport8

Specialist Civil Engineering – Track Record

• Singapore:

• Singapore Post Centre

• Central Expressway

• MRT North-south Line

• MRT East-west Line

• MRT North-east Line

• Kallang-Paya Lebar

ExpresswayExpressway

• MRT Circle Line

• MRT Downtown Line

Phase 1

• Marina Bay Sands

Integrated Resort

• Overseas:

• Dubai Metro Rail

• Hong Kong MTR

9

MRT – Yongnam’s Track Record

10

On-Going Projects

National Art Gallery•Contract worth S$47

million

•Supply and erect

structural steelworks for

new floor structure and

skybridges, plus

underpinning, shoring underpinning, shoring

and strengthening works

•60,000 sqm NAG will be

largest visual arts venue

in Singapore

•Expected completion in

1Q 2014

11

On-Going Projects

Singapore Sports

Hub•Contract and V.O. worth

S$101 million

•Supply and erect structural

steelworks for dome

shaped roof structure and

tertiary workstertiary works

•Stadium roof is the key

architectural element with

a fixed and movable

component

•Roof structure has

diameter of 312m and apex

about 82m high

•Moving Tiers, Aquatic

Centre & Multi-purpose

Hall

•Expected completion in

4Q2013 12

On-Going Projects

Market Street

Development•Contract worth S$33

million


steelworks and installation

of precast columns and

beamsbeams

•Expected completion in Q1-

2014

13

On-Going Projects

South Beach

Development•Contract worth S$20 million


steelworks for façade and

canopies

•Expected completion in Sep

20142014

14

On-Going Projects

15

On-Going Projects

•C485 contract worth S$201

million – Single biggest

contract won by Yongnam

todate

•Temporary steel pipe pile

cofferdam, steel waling

and strutting works

•Expected completion Dec

Marina Coastal Expressway – 6 contracts worth total of S$366 million

•Expected completion Dec

2013


million

•Supply, fabrication,

installation and removal of

temporary waler and

struts

•Expected completion

Aug2013

16

On-Going Projects


million

•Completed May 2013


million

•Completed 2Q-2013

Marina Coastal Expressway – 6 contracts worth total of S$366 million


million

•Completed Apr 2013


million

•Completed Mar 2013

17

On-Going Projects

MRT Downtown Line 2 – 4 contracts worth total of S$107 million

•C921 (3 contracts)

Installation and removal of

steel struts and walers,

sheet piles, soldier piles,

king posts and RC decking

for Little India Station,

Rochor Station and tunnel

between the two stations. between the two stations.

Expected completion Sep

2015

•C918 - Installation and

removal of steel struts and

walers for Tan Kah Kee

Station and Cut & Cover

Tunnel – Suspended until

further notice.

18

On-Going Projects

MRT Downtown Line 3 – 6 contracts worth total of S$107 million• C929 & C932A – Installation

and removal of steel struts,

sheetpile and decking for Kaki

Bukit and Kallang Bahru

Stations. Expected

completion end 2014

• C933 – Installation and


walers and construction walers and construction

decking for Jalan Besar

Station. Expected completion

April 2016

• C923 – Deep basement

excavation, installation and


construction decking for

Upper Changi Station.

Expected completion in Dec

2016

19

On-Going Projects

MRT Downtown Line 3 – 6 contracts worth total of S$107 million• C922 – Installation and

removal of steel struts,

decking and king posts for

Expo Station and overrun

tunnels. Expected completion

Dec 2016

• C931 – Installation and


decking for Macpherson decking for Macpherson

Station. Expected completion

Sep 2014

20

On-Going Projects

HK MTR Extension – 8 contracts worth total of HK$705 million•Part of 26-km long HK

section of the Guangzhou-

Shenzhen-Hong Kong

Express Rail Link running

from West Kowloon to

Shenzhen

•Design, supply, installation

and removal of strut and and removal of strut and

walers

•Cofferdam excavation of

cut and cover tunnels and

emergency rescue sidings

•Construction of temporary

bridge

•Expected completion

between 2014 to 2016

21

1H FY2013 Financial Performance1H FY2013 Financial Performance

22

1H FY2013 Financial Performance

2Q

FY2013

2Q

FY2012

Change (%)

1H

FY2013

1H

FY2012

Change (%)

Revenue (S$’m) 115.1 78.1 47.5 197.0 145.3 35.6

Gross Profit (S$’m) 22.4 20.5 8.9 41.9 40.3 4.0

Gross Profit Margin (%) 19.4 26.3 (26.2) 21.3 27.7 (23.1)

Profit before tax (S$’m) 10.4 13.6 (23.7) 23.1 26.3 (12.1)

Period ended June 30

Profit after tax (S$’m) 8.6 12.1 (28.6) 20.1 23.5 (14.3)

Profit after tax excluding one-off provision (S$’m)

13.7 12.1 13.3 25.2 23.5 7.2

EPS (Basic) (Singapore cents)(1) 0.68 0.96 (29.2) 1.59 1.87 (15.0)

NAV Per Share (Singapore cents) (2)

- - - 26.20 24.03 9.0

ROE (%) (Annualized) - - - 12.7 15.8 (19.6)

(1) EPS per share was computed based on the weighted average number of shares of 1,263,950,503 for 1HFY2013

(1HFY2012: 1,258,199,835)(2) NAV per share as at June 30, 2012 and June 30, 2013 respectively

23


Jun 30

2013

Dec 31

2012

Change

(%)

Net Work-In-Progress (S$’m) 108.3 75.7 43.1

Debtors (S$’m) 46.5 44.6 4.3

Cash (S$’m) 17.0 11.2 51.8

Borrowings (S$’m) 166.0 119.4 36.0


Borrowings (S$’m) 166.0 119.4 36.0

Net Borrowings (S$’m) 149.0 108.2 37.7

Gearing (times) 0.45 0.33 36.4

Shareholders’ Funds (S$’m) 331.8 323.1 2.7

24

120.0

140.0

160.0

180.0

200.0

115.1

145.3

197.0

Revenue


Revenue2QFY2013 Revenue increased

47.5% • Structural Steelworks increased

from S$32.2 million in

2QFY2012 to S$70.4 million in

2QFY2013 mainly due to:

• Singapore Sports Hub

• National Art Gallery

• Suntec City Convention Centre47.5%

S$’m

35.6%

-

20.0

40.0

60.0

80.0

100.0

120.0

2Q FY2012 2Q FY2013 1H FY2012 1H FY2013

78.1


• Suntec City Convention Centre

• Market Street Redevelopment

• Belt Conveyor Structure

project in Malaysia

• Specialist Civil Engineering

decreased from S$45.9 million

in 2QFY2012 to S$44.7 million in

2QFY2013 mainly due to :

• Substantial completion of

contracts for Marina Coastal

Expressway

47.5%

25


Revenue by Business Segment

2QFY2013 2QFY2012

Specialist Civil

Engineering

38.8%

Specialist Civil

Engineering

58.8%


Structural Steelworks

61.2%

Structural Steelworks

41.2%

26

25.0

30.0

35.0

40.0

45.0

20.5 22.4

40.3 41.9

S$'m


Gross ProfitFY2012 Gross Profit increased

8.9%8.9%

4.0%

-

5.0

10.0

15.0

20.0

25.0

2Q FY2012 2Q FY2013 1H FY2012 1H FY2013

20.5


• Due mainly to completion of

higher-margin iconic projects

at the end of FY2012• Lower revenue contribution from

higher-margin Specialist Civil

Engineering projects

27

15.0

20.0

25.0

30.0

13.6

26.3

23.1

S$'m


Profit before TaxFY2012 Profit before Tax

decreased 23.7%, due

mainly to S$5.1 million

provision for MRT Downline

2 project caused by (23.7%)

(12.1%)

-

5.0

10.0

15.0

2Q

FY2012

2Q

FY2013

1H

FY2012

1H

FY2013

13.6

10.4


2 project caused by

insolvency of main

contractor

28


Order Book

Order book of S$266 million as at June 30, 2013

• Structural Steelworks Vs Specialist Civil Engineering – 43:57

• 44% expected to complete in FY2013

29

Prospects and Market OutlookProspects and Market Outlook

30

Market Prospects: Singapore

Construction demand to continue in 2013(1)(2):

• The construction sector grew by 6.8% on a year-on-year basis in 1Q2013 and advanced estimates indicated a 5.6%

year-on-year growth for 2Q2013;

• A strong construction demand of between $26-32 billion is projected for 2013, anchored by public sector projects.

Forecast for 2014 and 2015(2):

• For 2014 and 2015, the average construction demand is projected to be $20-28 billion per annum.

• Barring any unforeseen circumstances, this projection is plausible in view of the strong pipeline of housing and

infrastructure construction projects planned by the Government to meet the needs of the population, despite the

anticipated lower economic growth rate in the coming years. anticipated lower economic growth rate in the coming years.

Major public sector projects in 2013 and beyond(1)(3):

• Energy Market Authority's fourth storage tank for the liquefied natural gas (LNG) terminal at Jurong Island;

• JTC's very large floating structure (VLFS) at Pulau Sebarok;

• Land Transport Authority's various construction contracts for the Thomson MRT Line and Tuas West Extension;

• Land Transport Authority's planned projects include Cross Island Line, Eastern Region Line, Jurong Region Line, Circle

Line Stage 6, Downtown Line Extension and North East Line Extension.

Sources:

(1) Ministry of Trade and Industry Singapore press release, Singapore’s GDP Growth Improved in the Second Quarter of 2013, 12 July 2013

(2) Building and Construction Authority press release, Public Sector Projects to Boost Construction Demand in 2013, 16 Jan 2013

(3) Land Transport Authority of Singapore website, Public Transport Projects On The Horizon, http://www.lta.gov.sg/content/ltaweb/en/public-transport.html

31

Market Prospects: Regional

• Malaysia:▫ Economic Transformation Programme (2010 to 2020):

� KL-Singapore high speed rail link project by 2020 (est. approx RM8 – 14 billion)

� Greater Kuala Lumpur/Klang Valley Integrated Urban MRT project by 2020 (approx RM36.6 billion)

� 35 stations along its 51km line, with 13 proposed park-and-ride stations and four interchanges

� Eight of the stations will be underground as 9.5km of the line will be built under the capital city, tunneling up to 30m underground

� Strutting requirements approx $200 - $300 million

▫ Singapore-Johor RTS Link by 2018

• Indonesia:▫ According to the Morgan Stanley Research data, Indonesia will spend US$250 billion on infrastructure ▫ According to the Morgan Stanley Research data, Indonesia will spend US$250 billion on infrastructure

development over a five-year period

▫ Building programme aimed at improving transport and logistics linkages across the country: 4000 km of roads, 150 km of rail lines and 14 airports

▫ Metro rail project:

� About 20 stations

� Strutting requirements approx $100 million

• Hong Kong:▫ Billions more expected to be spent on infrastructure as the city brings major projects on stream in the next

few years – beyond the 10 major projects (HK$250 billion) that were pushed through in the wake of the global financial crisis in 2008

▫ Major infrastructure projects:

� Central-Wan Chai Bypass and Island Eastern Corridor Link (HK$28.1 billion)

� Third runway at Chek Lap Kok airport in 2014 (HK$136.2 billion)

� EFLS: rail link connecting Kai Tak with Kowloon Bay, Kwun Tong and Sha Tin to Central Link (HK$12 billion)32

Market Prospects: Regional

• India:▫ Plan for Rs 41 lakh cr. (US$1 trillion) investment in infrastructure for India’s 12th Five-Year Plan (2012 – 17)

▫ Targeted fields include power generation, national highways, railways, roads, ports, airports and telecommunications

▫ Delhi-Mumbai Industrial Corridor will involve a 1, 500km railroad network and the construction of 16 new industrial complexes

▫ India needs to modernize 39 airports and build 10 new ones

• Middle East:▫ Gulf Cooperation Council (GCC) expected to continue spending on energy and construction projects during the

coming years, allocating a total of $985 billion for infrastructure development during 2010 – 2015

▫ Qatar: Up to $135 billion in infrastructure projects between now and World Cup 2022, including urban public ▫ Qatar: Up to $135 billion in infrastructure projects between now and World Cup 2022, including urban public transport, bridges, highways, railways, airports and ports, and sports stadiums/facilities

▫ Dubai: $7.8 billion airport and airspace expansion program will boost capacity at Dubai International airport from 60 million to 90 million passengers per year by 2018

• Myanmar:▫ According to the McKinsey data, Myanmar could more than quadruple the size of its economy to over US$200

billion by 2030, if it builds up basic infrastructure and diversifies its economy, estimating that Myanmar will need total infrastructure investment of US$320 billion between 2010 and 2030

• Others:▫ Philippines will fast-track infrastructure development throughout the country through the release of 141.8 billion

pesos (US$3.2 billion) for infrastructure projects including roads and bridges, airports, seaports and lighthouses

▫ Thailand plans to spend 1.9 trillion baht (US$62 billion) to expand rail systems, trains and transport projects until 2029

▫ Vietnam plans to invest 154 trillion dong (US$7.5 billion) between now and 2015 to upgrade the city’s transport infrastructure, including the Danang-Quang Ngai expressway project 33

Potential Projects

• Structural Steel• MS Development

• Changi Airport Terminal 4

• Commercial Developments

• Keels City Development

• Mediapolis

• Industrial Plants

34

Potential Projects

• Specialist Civil Engineering• Thomson Line

• HK MTR

• Tuen Mun – Chek Lap Kok Link

• Shatin – Central Link

35

Potential Projects

•Structural Steelworks

Location Expected

Commencement

Government

S$’mil

Non-Government

S$’mil

Total

S$’mil

Singapore 2013 46.5 246.1 292.6

2014 158.6 2.0 160.6

Overseas 2013 24.5 40.7 65.2

2014 25.0 227.4 252.4

Total 254.6 516.2 770.8

•Specialist Civil Engineering

Location Expected

Commencement

Government

S$’mil

Non-Government

S$’mil

Total

S$’mil

Singapore 2013 44.2 12.0 56.2

2014 220.6 - 220.6

Overseas 2013 256.0 - 256.0

2014 25.0 - 25.0

Total 545.8 12.0 557.8

Projects announced by Government (not included above):

Qatar – Infrastructure North-south Expressway MRT Eastern Region Line

36

Growth Strategies and PlansGrowth Strategies and Plans

37

Growth Strategies and Plans

• Remain focused on the two core businesses – Structural Steel and

Specialist Civil Engineering

• Pursue offshore structure projects and investment opportunities in

infrastructure developments that complement our Structural Steel

and Specialist Civil Engineering capabilitiesand Specialist Civil Engineering capabilities

• Leverage on established brand name and strong foothold in the

Singapore market

• Continue to explore projects in Hong Kong, Malaysia, Indonesia,

India, GCC countries and Europe

38

Thank You39

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