1H FY2013 Results Presentation

Transcription

1 YONGNAM HOLDINGS LIMITED 1H FY2013 Results Presentation 5 August

2 CONTENTS Our Business Corporate Updates 1H FY2013 Financial Performance Prospects and Market Outlook Growth Strategies and Plans 2

3 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 205,500tonnesof strutting assets and pipe piles Strong track record and high replacement cost of struts are major barriers to entry 3

4 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 Taisei Corporation Obayashi Corporation Penta Ocean Shimizu Corporation Dragages Singapore Samsung Corporation Ssangyong E&C Co. Ltd Hyundai E&C Ltd Daelim Industrial Co. Ltd Woh Hup Pte Ltd Larsen & Toubro Ltd SembawangE&C Pte Ltd 4

5 Our Footprint Projects Undertaken Across the Region: Singapore Malaysia Middle East China Norway Brunei Philippines Thailand Japan Korea Hong Kong Pakistan India Middle East India Hong Kong Thailand Malaysia Singapore Regional Presence: 1. Subsidiaries Singapore Malaysia Hong Kong Thailand Middle East 2. Project Office India 5

6 Our Facilities Singapore Total Land Area Workshop Covered Area Capacity (Normal Steel Structure) Malaysia (Nusajaya, Johor) Total Land Area Workshop Covered Area Capacity (Normal Steel Structure) Approximately76,000 m 2 20,250 m 2 3,000 Tonnes per month Approximately109,103 m 2 28,900 m 2 3,500 Tonnes per month Total Staff Strength Approximately 2,000 6

7 Operations Team CEO & Exec. Directors Project Management Production Design & Engineering Sales & 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 KhngChai 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

8 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 Resort Gardens by The Bay Civic, Cultural & Retail One-North Overseas: Brunei (Hangars) KLIA SuvarnabhumiInternational Airport, Bangkok Dubai Metro Rail New Delhi International Airport Mumbai International Airport 8

9 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 Expressway MRT Circle Line MRT Downtown Line Phase 1 Marina Bay Sands Integrated Resort Overseas: Dubai Metro Rail Hong Kong MTR 9

10 MRT Yongnam s Track Record 10

11 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 and strengthening works 60,000 sqmnag will be largest visual arts venue in Singapore Expected completion in 1Q

12 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 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 4Q

13 On-Going Projects Market Street Development Contract worth S$33 million Supply and erect structural steelworks and installation of precast columns and beams Expected completion in Q

14 On-Going Projects South Beach Development Contract worth S$20 million Supply and erect structural steelworks for façade and canopies Expected completion in Sep

15 On-Going Projects 15

16 On-Going Projects Marina Coastal Expressway 6 contracts worth total of S$366 million C485 contractworth S$201 million Single biggest contract won by Yongnam todate Temporary steel pipe pile cofferdam, steel waling and strutting works Expected completion Dec 2013 C487 contract worth S$54 million Supply, fabrication, installation and removal of temporary walerand struts Expected completion Aug

17 On-Going Projects Marina Coastal Expressway 6 contracts worth total of S$366 million C483 contract worth S$24 million Completed May 2013 C486 contract worth S$30 million Completed 2Q-2013 C482 contractworth S$22 million Completed Apr 2013 C482 contract worth S$42 million Completed Mar

18 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, RochorStation and tunnel between the two stations. Expected completion Sep 2015 C918 -Installation and removal of steel struts and walersfor Tan KahKee Station and Cut & Cover Tunnel Suspended until further notice. 18

19 On-Going Projects MRT Downtown Line 3 6 contracts worth total of S$107 million C929 & C932A Installation and removal of steel struts, sheetpileand decking for Kaki Bukit and Kallang Bahru Stations. Expected completion end 2014 C933 Installation and removal of steel struts and walersand construction decking for Jalan Besar Station. Expected completion April 2016 C923 Deep basement excavation, installation and removal of steel struts and construction decking for Upper ChangiStation. Expected completion in Dec

20 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 removal of steel struts and decking for Macpherson Station. Expected completion Sep

21 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 walers Cofferdam excavation of cut and cover tunnels and emergency rescue sidings Construction of temporary bridge Expected completion between 2014 to

22 1H FY2013 Financial Performance 22

23 1H FY2013 Financial Performance 2Q FY2013 2Q FY2012 Change (%) 1H FY2013 1H FY2012 Change (%) Revenue (S$ m) Gross Profit (S$ m) Gross Profit Margin (%) (26.2) (23.1) Profit before tax (S$ m) (23.7) (12.1) Profit after tax (S$ m) (28.6) (14.3) Profit after tax excluding oneoff provision (S$ m) EPS (Basic) (Singapore cents) (1) (29.2) (15.0) NAV Per Share (Singapore cents) (2) ROE (%) (Annualized) (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 Period ended June 30 23

24 1H FY2013 Financial Performance Jun Dec Change (%) Net Work-In-Progress (S$ m) Debtors (S$ m) Cash(S$ m) Borrowings(S$ m) Net Borrowings (S$ m) Gearing (times) Shareholders Funds (S$ m) Period ended June 30 24

25 1H FY2013 Financial Performance S$ m % Revenue % Revenue 2QFY2013 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 Centre Market Street Redevelopment Belt Conveyor Structure project in Malaysia Q FY2012 2Q FY2013 1H FY2012 1H FY2013 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 Period ended June 30 25

26 1H FY2013 Financial Performance Revenue by Business Segment 2QFY2013 2QFY2012 Specialist Civil Engineering 38.8% Specialist Civil Engineering 58.8% Structural Steelworks 61.2% Structural Steelworks 41.2% Period ended June 30 26

27 1H FY2013 Financial Performance S$'m % % Q FY2012 2Q FY2013 1H FY2012 1H FY2013 Gross Profit FY2012 Gross Profit increased 8.9% Due mainly to completion of higher-margin iconic projects at the end of FY2012 Lower revenue contribution from higher-margin Specialist Civil Engineering projects Period ended June 30 27

28 1H FY2013 Financial Performance S$'m (23.7%) (12.1%) 23.1 Profit before Tax FY2012 Profit before Tax decreased 23.7%, due mainly to S$5.1 million provision for MRT Downline 2 project caused by insolvency of main contractor 5.0-2Q FY2012 2Q FY2013 1H FY2012 1H FY2013 Period ended June 30 28

29 1H FY2013 Financial Performance 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 FY

30 Prospects and Market Outlook 30

31 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. 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, JurongRegion 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, 31

32 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 development over a five-year period Building programmeaimed 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 Takwith Kowloon Bay, KwunTong and ShaTin to Central Link (HK$12 billion) 32

33 Market Prospects: Regional India: Plan for Rs 41 lakhcr. (US$1 trillion) investment in infrastructure for India s 12 th Five-Year Plan ( ) 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 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 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

34 Potential Projects Structural Steel MS Development Changi Airport Terminal 4 Commercial Developments Keels City Development Mediapolis Industrial Plants 34

35 Potential Projects Specialist Civil Engineering Thomson Line HK MTR TuenMun ChekLap KokLink Shatin Central Link 35

36 Potential Projects Structural Steelworks Location Expected Commencement Government S$ mil Non-Government S$ mil Total S$ mil Singapore Overseas Total Specialist Civil Engineering Location Expected Commencement Government S$ mil Non-Government S$ mil Total S$ mil Singapore Overseas Total Projects announced by Government(not included above): Qatar Infrastructure North-south Expressway MRT Eastern Region Line 36

37 Growth Strategies and Plans 37

38 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 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

39 Thank You 39