Yongnam Holdings LimitedFY2009 Results Presentation

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Contents

• Our Business

• Corporate Updates

• FY2009 Financial Performance

• Prospects and Market Outlook

• Growth Strategies and Plans

Our Business

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Structural Steelworks

• One of the largest steelfabrication facilities inSoutheast Asia

• Nearest competitor is onefifth the size of Yongnam

• On time delivery and withquality

• S1 category accreditation from Singapore Structural Steel Society

We are…A well-established structural steel contractor and

specialist civil engineering solutions provider

Specialist Civil Engineering

• Modular Strutting Systemmeets increasingly stringentdesign and projectrequirements

• Approximately 134,000 tons ofstrutting assets and pipe piles

• Strong track record and high replacement cost of strutsare major barriers to entry

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Our Business

• Over 30 years of experience in steel fabrication

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

Takenaka Corporation

Taisei Corporation

Obayashi Corporation

Penta Ocean

Shimizu Corporation

Dragages Singapore

Sembawang Engineering &Construction Ltd

Samsung CorporationSsangyong Engineering &Construction Co LtdHyundai Engineering & Construction Ltd

Daelim Industrial Co. LtdWoh Hup Pte Ltd

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Regional Offices

Singapore

- Yongnam Engineering &

Construction (Pte) Ltd

- YNE Project Engineering

Pte Ltd

Malaysia

- Yongnam Engineering Sdn

Bhd

- Jiwa Harmoni Offshore Sdn

Bhd

Hong Kong

- Yongnam Engineering (HK) Ltd

Thailand

- Yongnam Engineering &Construction (Thailand) Ltd

Middle East

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

India

- Project Office (Delhi)

Hong Kong

Malaysia

Singapore

China

ThailandMiddle East

INDIA

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Regional Projects

Projects undertaken across the region:

Singapore

Malaysia

Middle East

China

Norway

Brunei

Philippines

Thailand

Japan

Korea

Hong Kong

Pakistan

India

Hong Kong

BruneiMalaysia

Singapore

Thailand Philippines

Japan

India

Korea

PakistanMiddle East

China

Norway

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Structural Steelworks – Track Record

Marina Bay Sands Integrated Resort, Singapore

Orchard Turn, Singapore

Dubai Metro Rail, Dubai

New Delhi International Airport, India

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Structural Steelworks – 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 1,600

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Specialist Civil Engineering – Track Record

Farrer Station, Circle Line, Singapore

Marina Bay Sands Integrated Resort, Singapore

• Marina Coastal Expressway

Specialist Civil Engineering – Track Record

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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

Corporate UpdatesCorporate Updates

• Total of 9 contracts worth S$342 million• First 3 contracts completed• Remaining 6 contracts:

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Corporate Updates – MBS IR

End March 2010North Podium

Project Expected Completion Date

ArtScience Museum End April 2010

View Corridors & Canopies End March 2010

Lion Garden Bridge &Cooling Tower Structure

End May 2010

SkyPark End April 2010

Crystal Pavilions End October 2010

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View Corridor Bridges& Large CanopiesMain Con – YongnamSteel Wt – 1,137 tons

Sky ParkMain Con – JFE Yongnam JV Steel Wt - 7,900 tons

Cooling TowersMain Con - YongnamSteel Wt - 507 tons

Lion Garden BridgeMain Con - YongnamSteel Wt - 480 tons

North Podium Steel Decking & StruttingMain Con – Sembcorp PunjLlyodsSteel Wt - 17,300 tons

Arts Science MuseumMain Con - Penta OceanSteel Wt - 5,113 tons

Ongoing Projects at MBS IR

Crystal PavilionsMain Con – Yongnam Steel Wt - 2,162 tons

MBS IR – Arts Science Museum

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MBS IR – Skypark

Sky Park

343m

64m

North CantileverNorth Cantilever

Bridge 2Bridge 2

Tower 3 Box GirderTower 3 Box Girder

Bridge 1Bridge 1

Heavy Lifting ComponentHeavy Lifting Component

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Corporate Updates

New Delhi International Airport• Completed in June 2009

Vista Xchange

• Contract worth S$88 million• Construction of the Integrated Civic, Cultural, Retail and

Entertainment Hub at Vista Xchange, located at one-north• Phase I Construction commenced end of 2008 and

completed • Phase II Construction expected to commence in March

2010 and scheduled for completion by January 2011• 13% completed

Artist’s Impression

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MBS IR – Garden by the Bay

• Design, supply and construct structural steelworks for:• Cool Dry Conservatory Building• Cool Moist Conservatory Building

• Main Contractor – Woh Hup Private Limited

• Contract value approx S$58.2 million

• 4.4% completed

• Expected completion October 2010

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Marina Coastal Expressway• 4 Contracts worth total of S$302 million

• C485 contract worth S$204.5 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 – 21% completed

• C487 contract valued at approx S$53 million• Support construction works by main contractor, Daelim Industrial Co. 

Ltd, through the lease supply, fabrication, installation and removal of temporary waler, strut, splay and bracing

• Contract works scheduled to commence in March 2010 and completion by end 2013

• C483 contract valued at approx S$23 million• The installation and the eventual extraction of the temporary steel 

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

• Contract works commenced in August 2009 and scheduled for completion by June 2012

• C486 contract valued at approx S$21.5 million• Supply, installation and removal of steel walers and struts• Contract awarded in November 2009 and scheduled for completion by 

September 2012

Corporate Updates - MCE

Artist’s Impression

C485

C485

• Completed:▫ Structural steelworks and strutting works for 19 overground/underground

stations in March 2009 for both Red and Green Lines

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Corporate Updates – Dubai Metro Rail

Dubai Metro Rail

• Ongoing:▫ Won new contract worth AED 13.3 million in April 2009 for the Entrance

Canopies for two underground stations for Red Line – 100% completed▫ Won two new contracts worth AED 84.8 million in April 2009 for Green

Line:AED 74.7 million contract for structural steelworks for 12 overgroundstations – 76% completedAED 10.1 million contract for structural steelworks for 6 underground stations – 75% completed

▫ Expected completion by April 2010

FY2009 Financial PerformanceFY2009 Financial Performance

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Financial Highlights

Building on record performance :

• 4th year of record performance, since FY2006

• Group revenue 2.7% to S$346.8 million

• Gross profit margin 14.8% to 23.2% in FY2009

• Net profit before tax 33.0% to S$48.8 million

• Structural Steelworks marginally to S$256.8 million

• Specialist Civil Engineering 7.8% to S$89.9 million

• Shareholders’ equity 27.0% to S$187.6 million as at end Dec 2009

• Strong order book – S$492 million as at end Dec 2009

• Proposed 0.5 Singapore cent one-tier tax exempt final dividend

Period ended December 31

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Financial Highlights

FY2008 FY2009 Change (%)

Revenue (S$’m)

337.6 346.8 +2.7

Gross Profit (S$’m)

68.1 80.4 + 18.0

Profit before tax (S$’m)

36.7 48.8 +33.0

EPS (Basic)

(Singapore cents) (1)

2.79 3.27 + 17.2

NAV Per Share (Singapore cents) (2)

12.14 15.22 + 25.4

Period ended December 31

(1) EPS per share was computed based on the weighted average number of shares of 1,226,033,071 for FY2009 (FY2008: 1,217,462,983)

(2) NAV per share as at December 31, 2009 and December 31, 2008 respectively

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Balance Sheet Highlights

-53.818.740.5Cash (S$’m)

+28.5159.1123.8Borrowings (S$’m)

Dec 31

2008

Dec 31

2009

Change (%)

Net Work-in-progress (S$’m)

89.6 93.0 +3.8

Debtors (S$’m) 36.5 47.8 +23.6

Gearing (times) 0.56 0.75 +33.9

Shareholders’Funds (S$’m)

147.7 187.6 +27.0

Period ended December 31

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Revenue

S$’m

Notwithstanding continuing global economic slowdown:

- FY2009 Revenue 2.7%:

• Structural Steelworks increased marginally to S$256.8 million mainly due to:

• Increased activities and higher contributions from the Group’s various projects at the Marina Bay Sands™Integrated Resort and Vista Xchange at One North

• Specialist Civil Engineering increased 7.8% to S$89.9 million mainly due to:

• The Group’s four contracts for the Marina Coastal Expressway

Period ended December 31

CAGR42.7%

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Revenue by Business Activity

FY2008 FY2009

Specialist Civil Engineering

S$89.9m

Structural SteelworksS$256.8m

Period ended December 31

Specialist Civil Engineering

S$83.4m

Structural SteelworksS$254.2m

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Gross Profit & Margin

S$’m Gross Profit 18.0%

Due mainly to:

• Improved margins : 23.2% in FY2009 compared to 20.2% in FY2008

• Increasing contributions from both Structural Steelworks and Specialist Civil Engineering segments

Period ended December 31

CAGR56.5%

20.2%

23.2%

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Profit before Tax

S$’m

Consequently, profit before tax 33.0%

Period ended December 31

CAGR189.0%

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Order Book

• Strong order book of S$492 million as at December 31, 2009

- 62% expected to complete by FY2010

- Specialist Civil Engineering increasing revenue contribution compared to FY2009

Period ended December 31

Prospects and Market OutlookProspects and Market Outlook

• Government ramping up construction spending(1)

▫ Value of construction contracts to be awarded this year will be between S$21 – 27 billion, and between S$18 – 25 billion for 2011 and 2012

▫ Public sector works will include large public infrastructure projects such as the MRT Downtown Line Phase 2 and various road works

▫ Construction industry can look forward to more tendering opportunities in building projects, including major industrial projects such as the LNG Terminal, Fusionopolis2A and Seletar Aerospace Park

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Market Prospects : Singapore

Government will continue to invest in infrastructure works :

• Construction grew from 3.7% of GDP in 2005 to 5.1% in 2008• Sustained level of construction demand expected over the next two to three years• Sector employed 385,200 workers (12.8% of Singapore workforce)

Construction is fastest growing sector 2 years in a row(2):

(1) Straits Times, Jan 13, 2010. Business Times, Jan 14, 2010(2) Today, Feb 22, 2010

• HK Budget 2010-11 : government committed to investing in infrastructure

• Estimated capital works expenditure for 2010-2011 will increase to HK$49.6 billion (from HK$45.1 billion in 2009-2010)

• Capital works expenditure for each of the next few years will be at an all time high of over HK$50 billion▫ MTR projects including : Shenzhen Metro

Line 4 Phase 2, West Island Line, South Island Line (East), Shatin to Central Link and Kwun Tung Line Extension

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Market Prospects : Regional

Hong Kong: India:

• India 2010-11 Budget : government has renewed sense of optimism over the country’s growth, having weathered the crisis and is now in a better position than it was a year ago

• Government remains committed to investing in infrastructure

• Rs 173,552 crore (approx S$53 billion) for infrastructure development

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Potential Projects

• Structural Steelworks

Nil50.02010Overseas

LocationExpected

CommencementGovernment

$ Mil

Non-Government

$ Mil

Singapore2010 121.0 Nil

2011 131.0 Nil

Total 302.0 Nil

LocationExpected

CommencementGovernment

$ Mil

Non-Government

$ Mil

Singapore2010 163.0 65.8

2011 70.0 108.3

Overseas2010 198.0 460.6

2011 Nil 42.5

Total 431.0 677.2

• Specialist Civil Engineering

• Projects announced by Government (not included above):▫ MRT Thomson Line

▫ MRT Eastern Line

• Contracts for infrastructural developments such as:MRT Downtown Line

Infrastructure – Oman

Singapore Sports Hub

Commercial – Saudi Arabia & Abu Dhabi

Marina Coastal Expressway

Growth Strategies and PlansGrowth Strategies and Plans

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Growth Strategies and Plans

Remain focused on the two core businesses – Structural Steelworks and Specialist Civil Engineering

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

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

Thank You