1HFY2008 Results Presentation August 15, 2008...2008/08/15 · Marina Bay Sands Integrated Resort,...

YONGNAM HOLDINGS LIMITED1HFY2008 Results Presentation

August 15, 2008

YONGNAM HOLDINGS LIMITED2

Our Business

Yongnam is

• A well-established structural steel contractor and specialist engineering solutions provider

• One of the largest steel fabrication facilities in South East Asia • nearest competitor is one-fifth the size of Yongnam

• S1 category accreditation from Singapore Structural Steel Society

• ISO9000 Quality Management System Certified

• OHSAS 18001 Occupational Health and Safety Management System Certified

Specialist CivilEngineering

StructuralSteelworks


Structural SteelworksCompetitive strengths:

Size of Fabrication FacilitiesDelivery on time and with qualityFew Competitors for S1 Classification

Track Record:Second International Airport, BangkokExpo MRT Station, SingaporeFusionpolis, SingaporeNational Library, SingaporeOne Raffles Quay, SingaporeChangi Airport Terminal 3, SingaporeSuntec City, SingaporeAircraft Hanger, BruneiCircle Line, SingaporeDubai Metro Rail, DubaiFormula One recreation cum commercial complex, SingaporeOrchard Turn, SingaporeMarina Bay Sands™ Integrated Resort, Singapore


Structural Steelworks

Marina Bay Sands Integrated Resort, Singapore

Formula One recreation cum commercial complex, Singapore

Orchard Turn, Singapore

Dubai Metro Rail, Dubai



SuvarnabhumiInternational Airport, Bangkok

Expo MRT Station, Singapore

Fusionpolis, Singapore

National Library, Singapore

One Raffles Quay, Singapore


Competitors:


TTJ Design & Engineering Pte Ltd

MCC Group

Victor Buyck Steel Construction Sdn Bhd

JFE Corporate Co. Ltd

Alfasi Construction (S) Pte Ltd


Specialist Civil Engineering

Competitive strengths:Modular Strutting System

Meets increasingly stringent design and project requirementsSize of Strutting Assets

Approximately 90k TonsHigh Replacement Cost of Struts

Track Record:Kallang Paya Lebar Expressway , SingaporeMRT Circle Line, SingaporeHong Kong MRT, Hong KongCentral Expressway, SingaporeNorth-East MRT Line, SingaporeDubai Metro Rail, Dubai


HarbourFront Station, North-East Line,Singapore

Kallang Paya Lebar Expressway, Singapore

Bartley Station, Circle Line, Singapore



Completed/Ongoing Works

PC

CD

ST

SS

SS

PC

PCPCPCPCPCPC

PC

CD

CD

CD

CD

SS SS

SS

STST

ST

ST

STSTST

ST

ST

ST

ST

PC Pre cast Projects

ST Civil Eng Works

ST

ST

STST

ST

ST

ST

ST

ST

ST

ST

ST

ST

ST

ST

ST

SS Structural Steelwork

CD Civil Defense Doors


Competitors:

Fuchi Company

“J” Steel



FacilitiesSingapore:

Total Land Area: Approximately 76,000 m2

Workshop Covered Area: 20,250 m2

Capacity (Normal Steel Structure): 3,000 Tons per monthAverage Utilisation: 3,100 Tons per month

Malaysia (Pontian):Total Land Area: Approximately 8070 m2


Capacity (Normal Steel Structure): 500 Tons per monthAverage Utilisation: 800 Tons per month

Malaysia (Nusajaya, Johor)*:Total Land Area: Approximately 109,103 m2


Expected Capacity (Normal Steel Structure): 3,500 Tons per month

*New fabrication factory commencing operations in August 2008

Combined Total Staff Strength: Approximately 1,350 (excluding sub-contractors)


Over 30 years of experience in steel fabrication

Long established relationships with major customers, who are reputable contractors, like:

Our Business

Takenaka Corporation

Taisei Corporation

Obayashi Corporation

Penta Ocean

Shimizu Corporation

Dragages Singapore

Samsung CorporationSsangyong Engineering &Construction Co LtdHyundai Engineering & Construction Ltd

Aker KvaernerSembawang Engineering &Construction Ltd


Singapore- Yongnam Engineering &Construction (Pte) Ltd

- YNE Project EngineeringPte Ltd

Malaysia- Yongnam Engineering Sdn

Bhd- Jiwa Harmoni Offshore SdnBhd

Hong Kong- Yongnam Engineering (HK) Ltd

ThailandYongnam Engineering & Construction (Thailand) Ltd

China- Yongnam Steel Work SystemEngineering (Shanghai) Co.,Ltd

Middle East- Yongnam Engineering & Construction (Pte) Ltd, Dubai Branch

India- Project Office (Delhi)

Regional Offices

Hong Kong

Malaysia

Singapore

China

ThailandIndia

Middle East


Hong Kong

BruneiMalaysia

Singapore

Thailand Philippines

Japan

India

Korea

Projects undertaken across the region:

Singapore

Malaysia

Middle East

China

Norway

Brunei

Philippines

Thailand

Japan

Korea

Hong Kong

Pakistan

India

Regional Projects

PakistanMiddle East

China

Norway

YONGNAM HOLDINGS LIMITED

Corporate Developments


Corporate DevelopmentsSuccessive wins of projects for Marina Bay Sands™ Integrated Resort (“IR”)

Sky Park Construction ProjectJoint venture with Japan-based JFE Engineering Corporation to undertake construction of Sky Park

1 ha park set atop the three hotel towers at the IRContract valued at S$50.3 million

South Podium Construction ProjectJoint venture with local-based KTC Civil Engineering & Construction to undertake contract for South Podium construction works

For temporary decking, steel waling, strutting and excavation worksContract valued at S$81.4 million


Corporate DevelopmentsSuccessive wins of projects for Marina Bay Sands™Integrated Resort (“IR”)

Sub-contracts from Penta-Ocean Construction and Sembawang Engineers & Constructors

From Penta-Ocean: structural steelworks for construction of the ArtScience Museum

Contract valued at S$41.4 millionFrom Sembawang Engineers: structural steelworks stanchion for construction of the Casino and Theatre Podium

Also includes specialist civil engineering expertise in the project for struts, walers, bracings, fittings and deckingsContract valued at S$42.0 million

Value of Total Contract Wins for the IR todate: S$261.1 million


Corporate Developments

Established strong foothold in the Middle East:

Total contracts awarded increased from an initial S$13.0 millionsecured in FY2006 to S$184.7 million as at end of 1HFY2008

Harvesting business development efforts in the Middle East

YONGNAM HOLDINGS LIMITED1HFY2008

Financial Performance


Financial Highlights

1HFY2008 Highlights:• 6th consecutive half-year record revenue

• Topline growth of 71.2% to S$133.8 million

• Net profit surges 191.3% to S$16.5 million

• Structural Steelworks remains as top revenue contributor and revenue gainer

• Shareholders’ equity improves to S$124.0 million as at end June 2008

• EPS increases 161.5% to 1.36 Singapore cents

• Order book strengthened to S$318 million as at end June 2008

Financial Period ended June 30


Financial Highlights

1.36

16.5

23.6

31.5

133.8

1HFY08

0.87

10.5

21.3

18.4

86.3

2QFY08

0.52 (1)

5.7 (1)

18.5

14.5

78.1

1HFY07

148.6

160.8

21.0

118.6

82.8

Change (%)

191.34.0 (1)Net Profit after MI (S$’m)

161.50.35 (1)EPS (Basic)(cents)

27.617.8Gross Profit Margin (%)

117.58.4Gross Profit (S$’m)

71.247.2Revenue (S$’m)

Change (%)2QFY07

(1) Excludes exceptional gain of S$12.7 million on write-back of impairment on an investment property



Balance Sheet Highlights

102.1107.1Bank Borrowings (S$’m)

113.2124.0Shareholders’ Funds (S$’m)

16.810.0Debtors (S$’m)

277.0318.0Order Book (S$’m)

19.932.2Cash & Bank Balances (S$’m)

120.5127.3Work-in-progress (S$’m)

2008Mar 31

2008Jun 30



Revenue

S$ million • 2QFY2008 Revenue 82.8%:Structural Steelworks jumped 103.0% toS$60.3 millionMainly due to:

Increased activities from projects suchas Orchard Turn, Marina Bay SandsTM

IR and the Dubai Metro Rail

Specialist Civil Engineering increased48.0% to S$25.9 millionMainly due to:

Commencement of projects at theMarina Bay SandsTM IR

47.2

78.1

133.8

0

20

40

60

80

100

120

140

2QFY2007 2QFY2008 1HFY2007 1HFY2008

86.3


71.2%

82.8%


S$ million• 2QFY2008 Gross Profit 118.6%,due to:Higher revenue

Improved gross margins:

17.8% in 2QFY2007 to 21.3% in2QFY2008

Gross Profit


8.4

18.4

14.5

31.5

0

5

10

15

20

25

30

35

2QFY2007 2QFY2008 1HFY2007 1HFY2008

118.6%

117.5%


S$ million • 2QFY2008 Net Profit 160.8%,mainly due to:Higher revenue

Higher margins

Net Profit Attributable to Shareholders


4.0

10.5

5.7

16.5

0.02.04.06.08.0

10.012.014.016.018.0

2QFY2007 2QFY2008 1HFY2007 1HFY2008

160.8%

191.3%

(1) 2QFY2007 & 1HFY2007 net profits exclude S$12.7 million write-back of impairment on an investment property

(1) (1)


Revenue by Business Activity

2QFY2008

30.0%70.0%

StructuralSteelworks

S$60.3m

Specialist Civil EngineeringS$25.9m 2QFY2007

37.1% 62.9%

Specialist Civil EngineeringS$17.5m


S$29.7m



S$ millionIncreasing Order Book:

• Group’s order book as atJune 30, 2008 amounted to S$318 million

• Boosted by recent contractwins from the Marina BaySandsTM Integrated Resort

Order Book


277

250

260

270

280

290

300

310

320

Mar 31 2008 June 30 2008

318

YONGNAM HOLDINGS LIMITEDProspects & Market Outlook


Prospects & Market OutlookPositive outlook for the local and regional markets:

Singapore:The Building and Construction Authority (BCA) estimates this year’s contracts to be awarded to hit S$23-S$27 billionOngoing infrastructure developments like Marina Coastal Expressway, MRT Downtown Line, Integrated Resorts, Singapore Sports Hub, Orchard Turn and other commercial developmentsAnnounced future developments such as North-South Expressway, MRT Thomson Line and MRT Eastern Line

Middle East and India:Rising budgets set by Governments to develop infrastructure to support growing economy and attract foreign investors


Estimated Contract Value

Structural Steelworks (Expected Commencement)2008 $369m2009 $444m

Specialist Civil Engineering(Expected Commencement)2008 $560m2009 $90m

Projects announced by Government (not included above):• MRT Thomson Line• MRT Eastern Line• North-South Expressway

Contracts for infrastructural and other developments such as:

Al Raha Beach ResortDubai Metro Rail

Singapore Sports HubMRT Downtown Line

Integrated ResortMarina Coastal Expressway

Prospects & Market OutlookPOTENTIAL PROJECTS IN THE MARKET

TOTAL $1,463m


Targeted MRT Projects

Yongnam’s Targeted New Projects

YONGNAM HOLDINGS LIMITEDGrowth Strategies & Plans


Growth Strategies & Plans

Continue to focus on the two core businesses – Structural Steel and Specialist Civil Engineering

Continue to explore opportunities in Middle East

Actively pursue opportunities in India

Laying groundwork in Malaysia to tap business opportunities coming on-stream in 2-3 years’ time

YONGNAM HOLDINGS LIMITEDKey Highlights


Key Highlights

• High-value projects secured by the Group in Singapore

• Build on strengths of Group’s two core businesses and continue to capitalise on the Group’s market leadership, both locally and overseas

• Increased spending on infrastructure developments by governments in Asia-Pacific and Middle East regions

• Well-positioned to tap on regional construction boom

• Concurrent efforts to pursue more business opportunities in the Middle East and India

YONGNAM HOLDINGS LIMITEDThank you

1HFY2008 Results Presentation August 15, 2008...2008/08/15 · Marina Bay Sands Integrated Resort,...

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Transcript of 1HFY2008 Results Presentation August 15, 2008...2008/08/15 · Marina Bay Sands Integrated Resort,...