2QFY2011 Results Presentation

Transcription

1 2QFY2011 Results Presentation November 15, 2010 Well-Anchored Position Today, we are the: # 1 crane company in Asia, and # 8 in the world, based on aggregate tonne-metres of mobile and crawler fleet 1 # 1 in the world based on number of crawler cranes 1 # 1 in China, and top 5 in the world, based on aggregate tonne-metres of tower crane fleet 1 fleet size of crawler, mobile and tower cranes of almost 1,200 and still growing Distribution General Equipment Tower Crane Crane 1 Source: International Cranes, IC50 Rankings, June

2 Diverse Track Record Construction Engineering Infrastructure Petrochemical Oil & Gas Power Generation Natural Resources 3 Regional Expertise Australia Gorgon Island oil & gas projects Devil s Creek gas plant Pluto LNG project Worsley alumina refinery Cape Preston power stations RGP 5 iron ore projects Apache Transglobal China Dalian Red riverbank nuclear power station Fujian Ningde nuclear power station Jinan West railway station Shenzhen Bao an International Airport Suzhou Future City ASEAN & Others Recently Completed Projects Sentosa IR Marina Sand IR Shell ECC in Pulau Ular Circle Line (MRT) Lucite Alpha 1 in Jurong Island Ongoing Projects Singapore LNG Plant in Jurong Island (end Nov) Lanxess in Jurong Island Marina Bay Front - Garden by the Bay Downtown Line Stage 1 (MRT) Downtown Line Stage 2 (MRT) International Cruise Centre Central Wan Chai Bypass (HK) Guangzhou Shenzhen Hong Kong Rail Link Kai Tak Development (June/July) 4

3 Our Global Reach Europe South Africa Middle East Sri Lanka Maldives Seychelles Mauritius Russia China South Korea Beijing Japan Pakistan Guangzhou Shanghai Myanmar Hong Kong Bangladesh Hanoi India Taiwan Bangkok Vietnam Guam Malaysia Ho Chi Philippines Minh Kuala Lumpur Jakarta Indonesia Singapore Borneo Papua New Guinea Cairns Townsville Port Hedland Dampier Darwin Mackay Dysart Gladstone Australia Brisbane Perth Penrith Coffs Harbour Adelaide Newcastle Kwinana Sydney Geelong Goulburn Portland Melbourne Laverton New Zealand Countries of Tat Hong Activities Tat Hong Offices 5 Fleet Updates

4 Crawler/Mobile Fleet Size (Metric Tonnes) No. of Cranes (as at Sep 30, 2010) No. of Cranes (as at Jun 30, 2010) No. of Cranes (as at Sep 30, 2009) < 49 MT MT MT MT > 250 MT Others Total Units Total Tonnage 55,706 52,571 49,401 Group Overall Utilisation Rate (based on tonnage) 65.7% 60.3% 64.0% 7 Tower Crane Fleet Size (Metric Tonnes) No. of Cranes (as at Sep 30, 2010) No. of Cranes (as at Jun 30, 2010) No. of Cranes (as at Sep 30, 2009) < 99 TM TM TM > 300 TM Others Total Units Total Tonnage- Metres Group Overall Utilisation Rate 118, ,372 66, % 75.7% 76.8% 8

5 2QFY2011 Financial Performance Results Summary Revenue increased 20% to S$145.6 million in 2QFY2011: All business divisions, except General Equipment, achieved better results Tower Crane leads revenue improvement again with 55% increase to S$13.8 million Gross profit grew 12% to S$53.9 million: In line with the higher revenue recorded this quarter Gross profit margin down 2.8 ppt to 37.0% due to lower margins from all divisions, except General Equipment PATMI improved 7% to S$7.1 million: Better performance registered by the Group s associates Reduced MI s share of profits with the completion of Tutt Bryant Group s (TBG) full acquisition Excluding one-off remaining goodwill impairment of S$2.5 million associated with Kingston Industries, PATMI would have increased 44% to S$9.6 million Balance sheet remains healthy despite increased borrowings for TBG acquisition and fleet expansion: Net gearing increases to 0.58 times Shareholders equity grows to S$516.5 million 10

6 Results at a Glance S$ m 2QFY11 2QFY10 % 1HFY11 1HFY10 % Revenue Gross Profit Gross Profit Margin (%) ppt ppt PBT PATMI PATMI Margin (%) ppt ppt PATMI (excl. oneoff impairment) Balance Sheet Highlights Fixed Assets (PP&E) As at Sep S$572.8m As at Mar S$520.3m Inventories S$186.8m S$201.0m Debtors S$114.6m S$112.7m Expansion of crane rental fleet, in particular, the tower crane fleet, and reclassification from inventories Improved equipment sales and inventory management Cash & Cash Equivalents S$93.5m S$76.6m Drawdown of loan facilities for TBG acquisition and fleet expansion Shareholders Equity S$516.5m S$498.6m NAV per share (Singapore cents) Net gearing Increase in financial liabilities for TBG acquisition and fleet expansion 12

7 Revenue by Business Activity 2QFY2010 2QFY % (S$18.1m) 7.3% (S$8.9m) 44.5% (S$54.1m) 10.1% (S$14.7m) 9.5% (S$13.8m) 44.2% (S$64.4m) 33.3% (S$40.5m) 36.2% (S$52.7m) Distribution Crane General Equipment Tower Crane 2Q: Three Months Ended September Revenue by Business Activity 15.5% (S$37.5m) 1HFY % (S$16.8m) 43.1% (S$104.1m) 10.7% (S$31.4m) 1HFY % (S$30.7m) 45.9% (S$135.1m) 34.5% (S$83.3m) 33.0% (S$97.3m) Distribution Crane General Equipment Tower Crane 14

8 Segmental Revenue Highlights S$ m % % QFY10 2QFY11 1HFY10 1HFY11 Distribution 1 revenue showed improvement year-on-year: Increased sales from the Singapore distribution arm: to a European equipment trader, Thai and Indonesian equipment owners and end users in Malaysia Increased sales to the shipping industry in Singapore and Malaysia Favourable translation of AUD partly led to higher sales revenue from Australia 1 The Group has combined its reporting for Equipment Sales and Parts & Services under a single segment, Distribution, wef 1QFY11 2Q: Three Months Ended September Segmental Revenue Highlights S$ m 17% % QFY10 2QFY11 1HFY10 1HFY11 Crane revenue grew 30% to S$52.7m in 2QFY2011: Higher revenue contribution from Australian subsidiary, Tutt Bryant; increased crane deployment to key desalination plants, mining and O&G projects. Higher revenue contribution from Hong Kong subsidiary; Participation in Express Rail Link, Highway extension projects, Macau casino. Lower revenue from Singapore and Malaysia; Completion and scaling down of some high-margin projects. 2Q: Three Months Ended September 30 16

9 Segmental Revenue Highlights S$ m % % QFY10 2QFY11 1HFY10 1HFY11 Tower Crane continued to be the star performer in revenue growth: fleet portfolio boosted with inclusion of Beijing Tat Hong Zhaomao Equipment and Sichuan Tat Hong Yuen Zheng Machinery Co.,Ltd.; from 362 tower cranes as at end September 2009 to 644 tower cranes as at end September 2010 Utilisation rate improved to 78.6%. 2Q: Three Months Ended September Segmental Revenue Highlights S$ m % % QFY10 2QFY11 1HFY10 1HFY11 General Equipment performance remained depressed: Continuing weak market conditions affected one of the major operating units, Kingston Industries Pty Ltd, in New South Wales 2Q: Three Months Ended September 30 18

10 GP & GP Margin S$ m % 37.0% 39.6% 36.8% QFY10 2QFY11 1HFY10 1HFY11 40% 20% 0% In line with better revenue recorded, gross profit grew 12% to S$53.9 million in 2QFY2011 Better revenue performance from all divisions except General Equipment Gross profit margin down 2.8 percentage points to 37.0%: Lower margins achieved by all divisions, except General Equipment 2Q: Three Months Ended September Gross Profit by Business Activity 2QFY2010 2QFY % (S$8.0m) 6.0% (S$2.9m) 26.7% (S$12.9m) 13.0% (S$7.0m) 6.9% (S$3.7m) 23.7% (S$12.8m) 50.7% (S$24.5m) 56.4% (S$30.4m) Distribution Crane General Equipment Tower Crane 2Q: Three Months Ended September 30 20

11 Gross Profit by Business Activity 1HFY2010 1HFY % (S$15.8m) 6.0% (S$5.7m) 24.3% (S$23.2m) 14.8% (S$16.1m) 9.4% (S$10.2m) 25.4% (S$27.5m) 53.2% (S$50.9m) 50.4% (S$54.6m) Distribution Crane General Equipment Tower Crane 21 Revenue by Regions 1HFY2010 1HFY % 32.5% 10.4% 33.2% 60.5% 56.4% Australia ASEAN & Others China 22

12 Proposed Interim Dividend 1.0 Singapore cent per Ordinary Share / CRP Share Payable on December 17, Prospects & Group Outlook

13 Our Key Markets Market Outlook Australia: Australia construction spending strong in Q2 (1) Value of construction work done amounted to a record A$41.7 billion in inflation-adjusted dollars The pick up in business spending owes much to the booming mining and energy industries Lift in investment in mining (2) Investment in mining to increase by 60% to a record $55 billion more than double the estimate included by Treasury in its pre-election economic update Minerals industry investment led by $43bn Gorgon LNG project and there are at least a dozen projects above $1bn planned over the next year Increased spending on infrastructure (3) Average age of Australia s infrastructure is running at 20.1 years to improve that to the long-run average of 18.6 years, around $600 billion in investment would be required Market Outlook China: Still strong albeit steadily declining fixed asset investment growth (4) : Bank of China pledged a total of almost CNY 14bn (US$2bn) in railway special purpose vehicles (SPVs) China offers scale and high levels of growth, combined with high levels of capital investment (1) Reuters, August 25, 2010 (2) ReportLinker, August 27, 2010 (3) The Sydney Morning Herald, September 21, 2010 (4) Business Monitor International: China Infrastructure Report Q4 2010, August 21, Our Key Markets Market Outlook Singapore: GDP growth in 1H of 2010 (1) Construction sector grew by 11.5%, supported by an increase in public sector construction activities Investment into rail network (2) Singapore will spend S$60 billion over the next decade to double its rail network includes Downtown Line, Thomson Line and Eastern Region Line Market Outlook for rest of Asia: Hong Kong (3) : Planned HKD50bn to be spent over the coming years translating into year-on-year growth of 2.57% for 2010 trend forecast to strengthen with average y-o-y growth of 3.6% between 2010 and 2014 Vietnam (4) : Review by Vietnam s State Steering Committee on Key O&G Projects:: Indonesia (5) : Construction on the $6 billion 2 nd refinery, Nghi Son Petrochemical Refinery, expected to start this year and become operational by 2013 Preparation for initial investment in 3 rd refinery Southern Petrochemical Refinery were also discussed Indonesia will need US$140bn in infrastructure spending over the next 5 years Spending on infrastructure would be increased 28% next year to trillion rupiah (US$14bn), with plans to build 14 new airports as well as roads and railways Possibility of issuing infrastructure bonds to help fund projects (1) Ministry of Trade and Industry Singapore Press Release, August 10, 2010 (2) Channel NewsAsia, August 29, 2010 (3) Business Monitor International: Hong Kong Infrastructure Report Q3 2010, October 4, 2010 (4) Scottrade, September 15, 2010 (5) Reuters, September 7,

14 Group Outlook Recovery for the Group s performance remains patchy and gradual Challenges still present, especially for the General Equipment division Distribution s performance expected to remain lumpy despite marked improvement year-on-year Crane to continue delivering consistent performance Demand in Australia remains upbeat; division expected to perform better in the next 12 months Tower Crane division in China to maintain growth track Market sentiments remain buoyed by the government s committed budgets for various infrastructure, railways and power plant projects The Group will work on better cost management to enhance its competitive advantage for improved performance Successful completion of TBG s privatisation TBG now a wholly-owned subsidiary augurs well going forward as Australia has always been a key growth market Group remains well-placed to perform better going forward As major projects in the region are launched or proceeding as planned 27 Thank You