Yongnam Holdings Limited

FY2010 Results Presentation

2

Contents

• Our Business

• Corporate Updates

• FY2010 Financial Performance

• Prospects and Market Outlook

• Growth Strategies and Plans

Our Business

3

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

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

Specialist Civil Engineering• Modular Strutting System meets increasingly

stringent design and project requirements• Approximately 140,000 tons of strutting assets and

pipe piles • Strong track record and high replacement cost of

struts are major barriers to entry

4

Our Business

• Close to 40 years of experience in steel fabrication

• Long established relationships with major reputable contractors:Takenaka Corporation

Taisei Corporation

Obayashi Corporation

Penta Ocean

Shimizu Corporation

Dragages Singapore

Sembawang Engineers &Constructors Pte Ltd

Samsung CorporationSsangyong Engineering &Construction Co LtdHyundai Engineering & Construction Ltd

Daelim Industrial Co. LtdWoh Hup Pte LtdLarsen & Toubro Ltd

5

Our Footprint

Regional Presence:

1. Subsidiaries

• Singapore

• Malaysia

• Hong Kong

• Thailand

• Middle East

2. Project Office

• India

• Qatar

Hong Kong

Malaysia

Singapore

Thailand

Middle East

INDIA

Projects undertaken across the region:

Singapore

Malaysia

Middle East

China

Norway

Brunei

Philippines

Thailand

Japan

Korea

Hong Kong

Pakistan

India

6

Our Facilities

Singapore:Total Land Area: Approximately 76,000 m2

Workshop Covered Area: 20,250 m2

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

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

Workshop Covered Area: 28,900 m2

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

Total Staff Strength: Approximately 2,000

7

• Singapore:▫ Terminal 1, Changi International Airport▫ Suntec City▫ Capital Tower▫ Marina Bay Sands Integrated Resort▫ ION Orchard▫ National Library Building▫ One Raffles Quay

• Overseas:▫ Dubai Metro Rail▫ New Delhi International Airport▫ Suvarnabhumi International Airport, Bangkok ▫ KLIA▫ Brunei (Hangars)

Structural Steelworks – Track Record

8

Structural Steelworks – Track Record

Marina Bay Sands Integrated Resort, Singapore

ION Orchard, Singapore

Dubai Metro Rail, Dubai

New Delhi International Airport, India

9

• Singapore:▫ Singapore Post Centre▫ Central Expressway▫ Kallang-Paya Lebar Expressway▫ MRT North-south Line▫ MRT East-west Line▫ MRT North-east Line▫ MRT Circle Line▫ Marina Bay Sands Integrated Resort

• Overseas:▫ Dubai Metro Rail▫ Hong Kong MTR

Specialist Civil Engineering – Track Record

10

Specialist Civil Engineering – Track Record

Farrer Station, MRT Circle Line, Singapore

Marina Bay Sands Integrated Resort, Singapore

11

MRT – Yongnam’s Track Record

Landmark

12

On-Going Projects

Vista Xchange

• Contract worth S$88.6 million• Construction of the Integrated Civic,

Cultural, Retail and Entertainment Hub at Vista Xchange, located at one-north

• Phase I Construction completed • Phase II Construction commenced in

March 2010 and scheduled for completion by Oct 2011

• 40% completedArtist’s Impression

13

On-Going Projects

Mumbai International Airport• Contract worth S$71.1 million (50/50 JV)• Second contract win following Delhi

International Airport• Construction of roof structure and

composite steel columns for new integrated terminal building

• Project expected to complete by Sep 2011

14

On-Going Projects

• Design, supply and construct structural steelworks for:

• Cool Dry Conservatory Building• Cool Moist Conservatory Building

• Contract value approx S$53.8 million

• 84% completed

• Expected completion May 2011

Gardens by the Bay

15

On-Going Projects

Marina Coastal Expressway

16

Marina Coastal Expressway• 6 Contracts worth total of S$362.2 million

• C485 contract worth S$206.0 million – single largest contract won by Yongnam todate

• Temporary steel pipe pile cofferdam, steel waling and strutting works• Project scheduled for completion by June 2013 – 51% completed

• C487 contract valued at approx S$53.1 million• Lease supply, fabrication, installation and removal of temporary waler

and struts

• Project scheduled for completion by June 2012 – 23% completed

• C483 contract valued at approx S$22.4 million• The installation and the eventual extraction of the temporary steel 

interlocking pipe pile earth retaining wall for the 950‐metre vehicular tunnel structure

• Project scheduled for completion by May 2012 – 59% completed

• C486 contract valued at approx S$22.5 million• Supply, installation and removal of steel walers and struts• Project scheduled for completion by April 2012 – 34% completed

On-Going Projects

Artist’s Impression

C485

C485

17

Marina Coastal Expressway

• C482 contract valued at approx S$22.1 million • Installation and removal of steel pipe pile• Project scheduled for completion by May 2012 – 75% completed

• C482 contract valued at approx S$36.1 million• Lease supply, fabrication, assembly, maintenance and removal of walers 

and struts• Project scheduled for completion by May 2012 – 12% completed

On-Going Projects

• Marina Coastal Expressway

On-Going Projects

• Marina Coastal Expressway

On-Going Projects

20

MRT Downtown Line 2

• C918 contract valued at approx S$25.0 million • Installation and removal of steel struts and

walers for Tan Kah Kee Station and Cut & Cover Tunnel

• Project scheduled to start in March 2011 for completion by June 2013

• C921 contract valued at approx S$27.5 million• Installation and removal of sheet piles, soldier

piles and king posts for Little India Station, Rochor Station and tunnel between the two stations

• Project commenced in September 2010 for completion by September 2015

• C921 Two contracts valued at approx S$56.5 million• Installation and removal of steel struts and

walers, and RC deckingfor Little India Station, Rochor Station and tunnel between the two stations

• Project commenced in December 2010 for completion by September 2015

On-Going Projects

FY2010 Financial Performance

22

FY2010 Financial Performance

5th year of record performance, since FY2006

FY2009 FY2010 Change (%)

Revenue (S$’m) 346.8 335.1 -3.4

Gross Profit (S$’m) 77.4 95.7 + 23.7

Profit before tax (S$’m) 48.8 67.7 +38.8

Profit after tax (S$’m) 40.1 54.4 +35.7

EPS (Basic)

(Singapore cents) (1)3.27 4.38 + 33.9

NAV Per Share (Singapore cents) (2) 15.22 18.92 + 24.3

ROE (%) 23.9 25.7 + 7.5

(1) EPS per share was computed based on the weighted average number of shares of 1,240,914,002 for FY2010 (FY2009: 1,226,033,071)

(2) NAV per share as at December 31, 2009 and December 31, 2010 respectivelyYear ended December 31

23

FY2010 Financial Performance

Dec 31

2009

Dec 31

2010

Change (%)

Net Work-in-progress (S$’m)

93.0 60.9 -34.5

Debtors (S$’m) 47.8 55.6 +16.3

Cash (S$’m) 18.7 20.6 +10.2

Borrowings (S$’m) 159.1 137.0 -13.9

Net Borrowings (S$’m) 140.4 116.4 -17.1

Gearing (times) 0.75 0.49 -34.7

Shareholders’ Funds (S$’m)

187.6 235.6 +25.6

Year ended December 31

Strengthened Balance Sheet

24

FY2010 Financial Performance

FY2010 Revenue decreased 3.4%:

• Structural Steelworks decreased from S$256.8 million to S$211.1 million mainly due to:

• Completion of several projects in FY2009 including New Delhi Airport project and some of the Group’s projects in the Marina Bay Sands Integrated Resort

• Substantial completion of Dubai Metro Rail project by third quarter FY2009

• Specialist Civil Engineering increased 37.8% to S$123.9 million mainly due to:

• Strong contributions from the Group’s contracts for the Marina Coastal Expressway

Year ended December 31

CAGR32.7%

Revenue

81.4

150.4174.1

337.6 346.8 335.1

0

50

100

150

200

250

300

350

S$'m

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

25

FY2010 Financial Performance

FY2009 FY2010

63.0%37.0%

Specialist Civil Engineering S$123.9m

Structural SteelworksS$211.1m

Year ended December 31

74.0%

26.0%

Specialist Civil Engineering

S$90.0m

Structural SteelworksS$256.8m

Revenue by Business Activity

13.422.1

31.4

68.1

77.4

95.7

0

10

20

30

40

50

60

70

80

90

100S$'m

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

26

FY2010 Financial Performance

Gross Profit 23.7% Due mainly to:

• Improved margins : 28.6% in FY2010 compared to 22.3% in FY2009

• Improved margins in Structural Steelwork segment

• Increasing contributions from the higher margin Specialist Civil Engineering segment

Year ended December 31

CAGR48.2%

22.3%

28.6%

Gross Profit & Margin

0.75.6

24.1

36.7

48.8

67.7

0

10

20

30

40

50

60

70S$'m

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

27

FY2010 Financial Performance

Consequently, profit before tax 38.8%

Year ended December 31

CAGR150.2%

Profit before Tax

28

FY2010 Financial Performance

• Strong order book of S$450 million as at December 31, 2010

- Structural Steelworks Vs Specialist Civil Engineering – 30:70

- 60% expected to complete in FY2011

Year ended December 31

Order Book

Prospects and Market Outlook

• Construction demand for:▫ 2011 expected between $22 – 28 billion(1)

▫ 2012 – 2013 projected between $20-$27 billion per year• Public sector to contribute between $12-$15 billion (55%), comprising:

▫ civil engineering construction (MRT Downtown Line Stage 3) ▫ public sector institutional construction demand (e.g. ITE’s 3rd campus at Ang Mo Kio, development

of community hospital at Jurong East, redevelopment of Victoria Theatre and Victoria Concert Hall)

• Private sector expected to contribute between $10-$13 billion:▫ backed by buoyant office space demand and vibrant retail sector▫ Dominated by High-specification and state-of-the-art buildings

30

Market Prospects : Singapore

Promising Outlook for Construction Sector Demand in 2011 :

(1) Building and Construction Authority press release, January 12, 2011(2) Straits Times, February11, 2011

Government to continue to invest in infrastructure :• Recently announced North-South Expressway, estimated at between $7-$8 billion to be ready by

2020 – with two semi-tunnel sections, Singapore’s longest viaduct(2)

• Other upcoming infrastructure projects: Singapore Sports Hub, LNG terminal, Fusionopolis etc• Transport infrastructure : MRT Thomson Line and Eastern Region Line

31

Market Prospects : Regional

• Malaysia:▫ Economic Transformation Programme:

2011 - construction sector expected to expand by 5.6%2012 - accelerate to 7% in 2012 RM 36bn MRT project planned for Greater KL High-speed rail link from KL to Singaporeabout 18 projects with an estimated investment value of RM52 billion:

Tanjung Agas oil & gas complexKL International Financial DistrictPower plants, hotels, etc

• Hong Kong:▫ HK Budget 2011-12 : government committed to investing in infrastructure. ▫ Estimated capital works expenditure:

2011-2012 to increase to over HK$58 billion (from HK$49.6 billion in 2010-2011)For each of the next few years to exceed HK$60 billion

▫ Major infrastructure projects rolled out: Hong Kong-Zhuhai-Macao BridgeHong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail LinkKai Tak Development Plan Stage 1

▫ Major projects expected to start in 2011-2012: MTR projects eg.Kwun Tung Line extension, Shatin to Central Link, South Island Line (East)

▫ Proposed cross-border infrastructure projects:Railway linking Hong Kong and Shenzhen airports – Hong Kong section to cost over HK$50billion

32

Market Prospects : Regional

• India:▫ Needs investments of US$1.7 trillion this decade▫ US$90 billion Delhi-Mumbai Industrial Corridor provides immense opportunities:

construction of roads and bridgesurban rail transit systemsairport and port developmentcontainer terminals

▫ Estimated investment of US$9 billion for airport development and upgrading over the next 5 years

• Middle East▫ Positive 2011-2012 outlook for Arab Gulf states: high oil prices will support government

infrastructure spending plans▫ Saudi Arabia : US$400 billion infrastructure development program to boost economic

growth ▫ Qatar :

world’s fastest growing economy in 2010World Cup host 2022US$140 billion infrastructure investment plan over next 10 years

▫ Abu Dhabi : investing US$200 billion by 2030 in various infrastructure projects to develop transportation networks (sea, air, road, rail), industrial zones, key manufacturing plants eg aluminium, steel, plastics

33

Potential Projects

• Structural Steelworks▫ Singapore Sports Hub▫ National Arts Gallery▫ Hong Kong MTR▫ Muscat Airport Terminal Building▫ Haramain High Speed Rail (Saudi

Arabia)▫ Abu Dhabi Stadium▫ Offshore Structures

34

Potential Projects

• Specialist Civil Engineering• North-south Line Extension• Downtown Line 3• Hong Kong MTR

35

Potential Projects

• Structural Steelworks

LocationExpected

CommencementGovernment

$ Mil

Non-Government

$ Mil

Total

Singapore2011 229.4 Nil 229.4

2012 130.5 Nil 130.5

Overseas2011 50.0 Nil 50.0

2012 Nil Nil Nil

Total 409.9 Nil 409.9

LocationExpected

CommencementGovernment

$ Mil

Non-Government

$ Mil

Total

Singapore2011 92.9 16.0 108.9

2012 130.0 29.0 159.0

Overseas2011 256.0 Nil 256.0

2012 214.0 218.0 432.0

Total 692.9 263.0 955.9

• Projects announced by Government (not included above):

• Contracts for infrastructural developments such as:

MRT Thomson LineMRT Eastern Region Line

North-South ExpresswayMRT Greater KL

• Specialist Civil Engineering

MRT Downtown Line Singapore Sports Hub National Arts Gallery

Infrastructure – Abu Dhabi, Oman, Saudi, HK Offshore Structures

Growth Strategies and Plans

37

Growth Strategies and Plans

Continue to grow the two core businesses – StructuralSteelworks and Specialist Civil Engineering

Actively pursue offshore structure projects

Leverage on established brand name and strong foothold in theSingapore market

Continue to explore projects in Hong Kong, Malaysia, Abu Dhabi,Saudi Arabia, Qatar, Oman, India and Europe

Thank You