26 february 2013 - yongnam holdings limited - ir...

YONGNAM HOLDINGS LIMITEDFY2012 Results PresentationFY2012 Results Presentation26 February 2013

CONTENTS

• Our Business• Corporate UpdatesCorporate Updates• FY2012 Financial Performance• Prospects and Market Outlook• Growth Strategies and PlansGrowth Strategies and Plans

Our BusinessA well‐established Structural Steel Contractor and Specialist Civil Engineering Solutions ProviderSpecialist Civil Engineering Solutions Provider

Structural Steelworks: Specialist Civil Engineering• One of the largest steel fabrication facilities in Southeast Asia

• Leading steel specialist contractor with unparalleled track record of iconic projects

p g g• Modular Strutting System meets increasingly stringent design and project requirements

• Approximately 195,700 tonnes of strutting assets and pipe pilesp j

• On‐time delivery and with quality• S1 category accreditation from Singapore Structural Steel Society

p p p• Strong track record and high replacement cost of struts are major barriers to entry

Our Business• More than 40 years of experience in steel fabrication and

i i f i i l iprovision 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

Our Footprint

Regional Presence:Regional Presence:1. Subsidiaries

• Singapore• Malaysia

Projects UndertakenAcross the Region:• SingaporeM l i

y• Hong Kong• Thailand• Middle East

• Malaysia• Middle East• China• Norway

Middle East India Hong Kong

Th il d 2. Project Office• India • Qatar

• Norway• Brunei• Philippines• Thailand

Thailand

MalaysiaSingapore

• Thailand• Japan• Korea• Hong KongHong Kong• Pakistan• India

Our Facilities• SingaporeTotal Land Area Approximately 76 000 m2Total Land AreaWorkshop Covered AreaCapacity (Normal Steel Structure)

Approximately 76,000 m20,250 m2

3,000 Tonnes per month

• Malaysia (Nusajaya, Johor)Malaysia (Nusajaya, Johor)Total Land AreaWorkshop Covered AreaCapacity (Normal Steel Structure)

Approximately 109,103 m2

28,900 m2

3,500 Tonnes per month

• Total Staff Strength Approximately 2,000

Operations TeamCEO &&

Exec. Directors

Project Management Production Design &

Engineering Sales & Marketing

Project Directors• C. Harendran• Raymond TanCh H k Ch

Production Director• Seow Soon Hock

SingaporeG l M

Engineering Directors• Takashi Watabe

EngineeringH W B

Sr. BD Manager• John Lim

• Cheong Hock Choon• Sik Kay Lee• Koh Eng Seng

General Manager• Seow Khng Chai

Malaysia

• Ho Wan BoonTechnical

• Munetada YamajiDesigng

• 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 ManagersSupported by teams of qualified and experienced Project Managers, Production Managers, Engineers, Detailers and Co‐ordinators

Structural Steel – Track Record• Singapore:

• Terminal 1, ChangiInternational AirportInternational 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• Suvarnabhumi International Airport, Bangkok

• Dubai Metro Rail• New Delhi International Airport

Specialist Civil Engineering – Track Record

• Singapore:• Singapore Post Centre• Singapore Post Centre• Central Expressway• MRT North‐south Line• MRT East‐west Line• MRT East‐west Line• MRT North‐east Line• Kallang‐Paya LebarExpresswayExpressway

• MRT Circle Line• MRT Downtown Line Phase 1

• Marina Bay Sands Integrated Resort

• Overseas:• Dubai Metro Rail• Hong Kong MTR

MRT – Yongnam’s Track Record

On-Going Projects

Mumbai International Airport•Contract worth S$80 million (50/50 JV)•Second contract win following Delhi International AirportC i f f d•Construction of roof structure and composite steel columns for new integrated terminal buildingE t d l ti i M 2013•Expected completion in Mar 2013

On-Going Projects

NUH Medical Centre•Contract worth S$19 million

•Supply and erect structural l k f 22steelworks for a 22‐storey

building•Expected completion in Feb 20132013

On-Going Projects

National Art Gallery•Contract worth S$47 million

•Supply and erect structural l k f flsteelworks for new floor

structure and skybridges, plus underpinning, shoring d t th i kand strengthening works

•60,000 sqm NAG will be largest visual arts venue in SingaporeSingapore

•Expected completion in 2013

On-Going ProjectsSingapore Sports HubHub•Contract and V.O. worth S$100 million

•Supply and erect structuralSupply and erect structural steelworks for dome shaped roof structure and tertiary worksy

•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

llHall•Expected completion in 3Q2013

On-Going ProjectsMarket Street DevelopmentDevelopment•Contract worth S$33 million

•Supply and erect structuralSupply and erect structural steelworks and installation of precast columns and beams

•Expected completion in Q1‐2014

On-Going ProjectsSouth Beach DevelopmentDevelopment•Contract worth S$20 million•Supply and erect structural steelworks for façade andsteelworks for façade and canopies

•Expected completion in Sep 2014

On-Going ProjectsMarina Coastal Expressway – 6 contracts worth total of S$366 million

On-Going Projects

•C485 contract worth S$201 Marina Coastal Expressway – 6 contracts worth total of S$366 million

million – Single biggest contract won by Yongnamtodate•Temporary steel pipe pile cofferdam, steel waling and strutting works

•Expected completion Dec 2013

C487 t t th S$54•C487 contract worth S$54 million•Supply, fabrication, installation and removal ofinstallation and removal of temporary waler and struts

•Expected completion Jun•Expected completion Jun 2013

On-Going Projects


million• Installation and extraction of temporary steel interlocking pipe pile earth retaining wall for 950m vehicular tunnel structure

•Expected completion May 2013

•C486 contract worth S$31 million•Supply installation and•Supply, installation and removal of steel waler and struts & pipe pile extractionextraction

•Expected completion Q3‐2013

On-Going Projects


million• Installation and removal of steel pipe piles

•Expected completion Apr 2013

$•C482 contract worth S$42 million•Supply, fabrication,

bl i tassembly, maintenance and removal of waler and struts

•Expected completion Mar•Expected completion Mar 2013

On-Going ProjectsMRT Downtown Line 2 – 4 contracts worth total of S$107 million

•C918 ‐ Installation and removal of steel struts and walers for Tan Kah KeeStation and Cut & Cover Tunnel. Expected completion Q4‐2013

•C921 (3 contracts) Installation and removal of steel struts and walers, h t il ldi ilsheet piles, soldier piles, king posts and RC decking for Little India Station, Rochor Station and tunnelRochor Station and tunnel between the two stations. Expected completion Sep 20152015


• C929 & C932A – Installation and removal of steel struts, sheetpile and decking for Kaki Bukit and Kallang BahruStations ExpectedStations. Expected completion end 2014

• C933 – Installation and removal of steel struts and walers and construction decking for Jalan BesarStation. Expected completion April 2016April 2016

• C923 – Deep basement excavation, installation and removal of steel struts and construction decking for Upper Changi Station. Expected completion in Dec 20162016


• C922 – Installation and removal of steel struts, decking and king posts for Expo Station and overrun tunnels Expected completiontunnels. Expected completion Dec 2016

• C931 – Installation and removal of steel struts and decking for Macpherson Station. Expected completion Sep 2014

On-Going ProjectsHK MTR Extension – 5 contracts worth total of HK$520 million

•Part of 26‐km long HK section of the Guangzhou‐Shenzhen‐Hong Kong Express Rail Link running f W t K l tfrom West Kowloon to Shenzhen

•Design, supply, installation and removal of strut andand removal of strut and walers

•Cofferdam excavation of cut and cover tunnels andcut and cover tunnels and emergency rescue sidings

•Expected completion between 2014 to 2016between 2014 to 2016

FY2012 Financial Performance


FY2012 FY2011 Change (%)(%)

Revenue (S$’m) 301.6 332.7 (9.4)Gross Profit (S$’m) 75.9 103.6 (26.8)Gross Profit (S$ m) 75.9 103.6 (26.8)Gross Profit Margin (%) 25.2 31.1 (19.0)Profit before Tax (S$’m) 48.9 75.2 (35.0)Profit after Tax (S$’m) 43.5 63.4 (31.3)EPS (Basic) (Singapore cents)(1) 3.45 5.06 (31.8)NAV per Share (Singapore cents)(2) 25.60 23.25 10.1ROE (%) 15.9 28.5 ‐(1)(1) EPS per share was computed based on the weighted average number of shares of 1,260,076,369 for FY2012 (FY2011: 1,252,124,835)

(2) NAV per share as at December 31, 2012 and December 31, 2011 respectively

Year ended December 31


Dec 31 Dec 31 Change2012 2011 (%)

Net Work‐In‐Progress (S$’m) 75.7 42.3 79.0Debtors (S$’m) 44.6 47.1 (5.3)Cash (S$’m) 11.2 28.0 (60.0)B i (S$’ ) 119 4 115 3 3 6Borrowings (S$’m) 119.4 115.3 3.6Net Borrowings (S$’m) 108.2 87.3 23.9Gearing (times) 0 33 0 30 10 0Gearing (times) 0.33 0.30 10.0Shareholders’ Funds (S$’m) 323.1 291.5 10.8



332 7

RevenueFY2012 Revenue decreased S$’m

300.0

350.0 332.7

301.6

9.4% • Structural Steelworks decreased from S$165.0 million in FY2011 to S$131 7 million in FY2012

(9.4%)

250.0

to S$131.7 million in FY2012 mainly due to:• Substanital completion of major projects in FY2011 and

200.0 slower progress in certain on‐going projects in FY2012

• Specialist Civil Engineering

100.0

150.0 Specialist Civil Engineering increased from S$167.7 million in FY2011 to S$169.7 million in FY2012 mainly due to

FY2011 FY2012 contributions from:• contracts for Marina Coastal Expressway, MRT Downtown Line 2 MRT NS Line


Line 2, MRT NS Line Extension, and HK MTR

FY2012 Financial PerformanceRevenue by Business Segment

FY2012FY2011 FY2012FY2011Specialist CivilSpecialist CivilEngineering

56.3%

pEngineering

50.4%

Structural Steelworks43.7%

Structural Steelworks49.6%



S$'m

100.0

120.0 103.6

S$ m

Gross Profit(26.8%)

60.0

80.0 75.9

Gross ProfitFY2012 Gross Profit decreased 26.8%

20.0

40.0 Due mainly to lower revenue and lower margins

‐FY2011 FY2012



75.2S$'m

70.0

80.0 75.2

48 9

(35.0%)

40.0

50.0

60.0 48.9

Profit before TaxFY2012 Profit before Tax

20.0

30.0 FY2012 Profit before Tax decreased 35.0%

‐

10.0

FY2011 FY2012



S$’mCompounded Annual Growth Rate

300

350 337.6346.8

335.1 332.7

301.6 Revenue CAGR12.3%

$

250

150

200

150.4

174.1

50

100

33 9 40 154.4 63.4

43.5

PAT‐CAGR42.0%

0

50

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

5.324.6

33.9 40.1

Revenue PAT


FY2012 Financial PerformanceOrder Book

Strong order book of S$400.6 million as at December 31, 20122012

• Structural Steelworks Vs Specialist Civil Engineering – 50:50Structural Steelworks Vs Specialist Civil Engineering 50:50

• 78% expected to complete in FY2013


Prospects and Market Outlook

Market Prospects: SingaporeConstruction demand to continue in 2013(1)(2):• The construction sector grew by 8.2% on a year‐on‐year basis in 2012; • A strong construction demand of between $26‐32 billion is projected for 2013 anchored by public sector projects• A strong construction demand of between $26‐32 billion is projected for 2013, anchored by public sector projects.

Major public sector projects likely to be awarded in 2013:• Nanyang Technological University's Undergraduate Halls of Residence at Nanyang Avenue/Crescent;• Nanyang Technological University s Undergraduate Halls of Residence at Nanyang Avenue/Crescent;• 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• Land Transport Authority's expansion of Kallang Paya Lebar Expressway (KPE) / Tampines Expressway (TPE)

Interchange.

Forecast for 2014 and 2015:• 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 theinfrastructure construction projects planned by the Government to meet the needs of the population, despite the anticipated lower economic growth rate in the coming years.

Sources:(1) Ministry of Trade and Industry Singapore press release, MTI Maintains its 2013 GDP Growth Forecast at 1.0 to 3.0 Per Cent, 22 Feb 2013(1) Ministry of Trade and Industry Singapore press release, MTI Maintains its 2013 GDP Growth Forecast at 1.0 to 3.0 Per Cent, 22 Feb 2013(2) Building and Construction Authority press release, Public sector projects to boost construction demand in 2013, 16 Jan 2013

Market Prospects: Regional• Malaysia:

▫ Economic Transformation Programme: KL‐Singapore high speed rail project (est. approx RM8 – 14 billion)g p g p p j ( pp )Greater Kuala Lumpur/Klang Valley MRT project (approx RM36.6 billion)

35 stations along its 51km line, with 13 proposed park‐and‐ride stations and four interchangesEight 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:$▫ Indonesia will spend $250 billion on infrastructure development in the next five years

▫ Building program 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 stationsAbout 20 stationsStrutting requirements approx $100 million

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

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 g p g , g y , y , , p , p

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 – 2015Q t U t $135 billi i i f t t j t b t d W ld C 2022 i l di b bli▫ 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

• 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 p p ( $ ) p y , p p j

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

Potential Projects

• Structural Steel• MS DevelopmentMS Development• Commercial Developments• Keels City Development• MediapolisMediapolis• Industrial Plants

Potential Projects

• Specialist Civil Engineering• Thomson Line• HK MTR• Tuen Mun – Chek Lap Kok Link• KL Metro

Potential Projects•Structural Steelworks

Location Expected Commencement

Government S$’mil

Non‐GovernmentS$’mil

Total S$’milCommencement S$ mil S$ mil S$ mil

Singapore 2013 77.8 318.4 396.2

2014 ‐ ‐ ‐

O 2013 24 5 323 0 347 5Overseas 2013 24.5 323.0 347.5

2014 ‐ ‐ ‐

Total 102.3 641.4 743.7

•Specialist Civil EngineeringLocation Expected

CommencementGovernment

S$’milNon‐Government

S$’milTotal S$’mil

Singapore 2013 189.0 13.2 202.2

2014 ‐ ‐ ‐

Overseas 2013 342.0 ‐ 342.0

2014 ‐ ‐ ‐

Total 531.0 13.2 544.2

Projects announced by Government (not included above):

Qatar – Infrastructure North‐south Expressway MRT Eastern Region Line

Growth Strategies and Plans

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• Pursue offshore structure projects and investment opportunities in infrastructure developments that complement our Structural Steel and Specialist Civil Engineering capabilitiesand Specialist Civil ngineering capabilities

• Leverage on established brand name and strong foothold in the Singapore market

• Continue to explore projects in Hong Kong Malaysia Indonesia• Continue to explore projects in Hong Kong, Malaysia, Indonesia, India, GCC countries and Europe

Thank You

26 february 2013 - yongnam holdings limited - ir...

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