YONGNAM HOLDINGS LIMITED 1H FY2013 Results Presentation 5 August 2013 1 CONTENTS

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

2 Our Business A well-established Structural Steel Contractor and Specialist Civil Engineering Solutions Provider

Structural Steelworks: Specialist Civil Engineering • One of the largest steel fabrication facilities in • Modular Strutting System meets increasingly stringent design and project requirements • Leading steel specialist contractor with unparalleled • Approximately 205,500 tonnes of strutting assets and track record of iconic projects pipe piles • On-time delivery and with quality • Strong track record and high replacement cost of struts • S1 category accreditation from Singapore Structural are major barriers to entry Steel Society 3 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 • Samsung Corporation • Taisei Corporation • Ssangyong E&C Co. Ltd • Obayashi Corporation • Hyundai E&C Ltd • Penta Ocean • Daelim Industrial Co. Ltd • Shimizu Corporation • Woh Hup Pte Ltd • Dragages Singapore • Larsen & Toubro Ltd • Sembawang E&C Pte Ltd

4 Our Footprint

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

5 Our Facilities

• Singapore Total Land Area Approximately 76,000 m 2 Workshop Covered Area 20,250 m 2 Capacity (Normal Steel Structure) 3,000 Tonnes per month • Malaysia (Nusajaya, Johor) Total Land Area Approximately 109,103 m 2 Workshop Covered Area 28,900 m 2 Capacity (Normal Steel Structure) 3,500 Tonnes per month • Total Staff Strength Approximately 2,000

6 Operations Team

CEO & Exec. Directors

Project Design & Production Sales & Marketing Management Engineering

Project Directors Production Director Engineering Directors Sr. Manager • C. Harendran • Seow Soon Hock • Takashi Watabe • John Lim • Raymond Tan Singapore Engineering • Cheong Hock Choon General Manager • Ho Wan Boon • Sik Kay Lee • Seow Khng Chai Technical • Koh Eng Seng Malaysia • Munetada Yamaji Design

• 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 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 Complex @ One-North • Overseas: • Brunei (Hangars) • KLIA • Suvarnabhumi International Airport, Bangkok • Dubai Metro Rail • New Delhi International Airport • Mumbai International Airport 8 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 MRT – Yongnam’s Track Record

10 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 sqm NAG will be largest visual arts venue in Singapore •Expected completion in 1Q 2014

11 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 4Q2013 12 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 Q1- 2014

13 On-Going Projects

South Beach Development •Contract worth S$20 million •Supply and erect structural steelworks for façade and canopies •Expected completion in Sep 2014

14 On-Going Projects

15 On-Going Projects

Marina Coastal Expressway – 6 contracts worth total of S$366 million •C485 contract worth 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 waler and struts •Expected completion Aug2013

16 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 contract worth S$22 million •Completed Apr 2013

•C482 contract worth S$42 million •Completed Mar 2013

17 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, Rochor Station and tunnel between the two stations. Expected completion Sep 2015

•C918 - Installation and removal of steel struts and walers for Tan Kah Kee Station and Cut & Cover Tunnel – Suspended until further notice.

18 On-Going Projects

MRT Downtown Line 3 – 6 contracts worth total of S$107 million • C929 & C932A – Installation and removal of steel struts, sheetpile and decking for Kaki Bukit and Kallang Bahru Stations. Expected completion end 2014 • C933 – Installation and removal of steel struts and walers and 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 Changi Station. Expected completion in Dec 2016

19 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 2014

20 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 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 2016

21 1H FY2013 Financial Performance

22 1H FY2013 Financial Performance

2Q 2Q Change 1H 1H Change FY2013 FY2012 (%) FY2013 FY2012 (%)

Revenue (S$’m) 115.1 78.1 47.5 197.0 145.3 35.6

Gross Profit (S$’m) 22.4 20.5 8.9 41.9 40.3 4.0

Gross Profit Margin (%) 19.4 26.3 (26.2) 21.3 27.7 (23.1)

Profit before tax (S$’m) 10.4 13.6 (23.7) 23.1 26.3 (12.1)

Profit after tax (S$’m) 8.6 12.1 (28.6) 20.1 23.5 (14.3) Profit after tax excluding one- 13.7 12.1 13.3 25.2 23.5 7.2 off provision (S$’m) EPS (Basic) (Singapore cents) (1) 0.68 0.96 (29.2) 1.59 1.87 (15.0) NAV Per Share (Singapore - - - 26.20 24.03 9.0 cents) (2) ROE (%) (Annualized) - - - 12.7 15.8 (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 1H FY2013 Financial Performance

Jun 30 Dec 31 Change 2013 2012 (%) Net Work-In-Progress (S$’m) 108.3 75.7 43.1 Debtors (S$’m) 46.5 44.6 4.3 Cash (S$’m) 17.0 11.2 51.8 Borrowings (S$’m ) 166.0 119.4 36.0 Net Borrowings (S$’m) 149.0 108.2 37.7 Gearing (times) 0.45 0.33 36.4 Shareholders’ Funds (S$’m) 331.8 323.1 2.7

Period ended June 30 24 1H FY2013 Financial Performance

Revenue S$’m Revenue 2QFY2013 Revenue increased 197.0 47.5% 200.0 35.6% • Structural Steelworks increased 180.0 from S$32.2 million in 2QFY2012 to S$70.4 million in 145.3 160.0 2QFY2013 mainly due to: 140.0 • Singapore Sports Hub 115.1 National Art Gallery 120.0 47.5% • • Suntec City Convention Centre 100.0 78.1 • Market Street Redevelopment 80.0 • Belt Conveyor Structure project in Malaysia 60.0

40.0 • Specialist Civil Engineering 20.0 decreased from S$45.9 million in 2QFY2012 to S$44.7 million in - 2Q FY2012 2Q FY2013 1H FY2012 1H FY2013 2QFY2013 mainly due to : • Substantial completion of contracts for Marina Coastal Expressway

Period ended June 30 25 1H FY2013 Financial Performance

Revenue by Business Segment 2QFY2013 2QFY2012

Specialist Civil Specialist Civil Engineering Engineering 38.8% 58.8%

Structural Steelworks Structural Steelworks 61.2% 41.2%

Period ended June 30 26 1H FY2013 Financial Performance

S$'m 4.0% 41.9 45.0 40.3 40.0 Gross Profit 35.0 FY2012 Gross Profit increased 8.9% 8.9% 30.0 22.4 20.5 25.0 • Due mainly to completion of 20.0 higher-margin iconic projects 15.0 at the end of FY2012 10.0 • Lower revenue contribution from 5.0 higher-margin Specialist Civil Engineering projects - 2Q FY2012 2Q FY2013 1H FY2012 1H FY2013

Period ended June 30 27 1H FY2013 Financial Performance

S$'m

(12.1%) 26.3 Profit before Tax 30.0 FY2012 Profit before Tax 23.1 25.0 decreased 23.7%, due mainly to S$5.1 million 20.0 (23.7%) provision for MRT Downline 13.6 2 project caused by 15.0 10.4 insolvency of main contractor 10.0 5.0 - 2Q 2Q 1H 1H FY2012 FY2013 FY2012 FY2013

Period ended June 30 28 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 FY2013

29 Prospects and Market Outlook

30 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, Jurong Region 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, http://www.lta.gov.sg/content/ltaweb/en/public-transport.html

31 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 / 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 programme aimed 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 Tak with Kowloon Bay, Kwun Tong and Sha Tin to Central Link (HK$12 billion) 32 Market Prospects: Regional

• India: ▫ Plan for Rs 41 lakh cr. (US$1 trillion) investment in infrastructure for India’s 12 th Five-Year Plan (2012 – 17) ▫ 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 2010 – 2015 ▫ 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 141.8 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 Potential Projects

• Structural Steel • MS Development • Changi Airport Terminal 4 • Commercial Developments • Keels City Development • Mediapolis • Industrial Plants

34 Potential Projects

• Specialist Civil Engineering • Thomson Line • HK MTR • Tuen Mun – Chek Lap Kok Link • Shatin – Central Link

35 Potential Projects

•Structural Steelworks Location Expected Government Non-Government Total Commencement S$’mil S$’mil S$’mil Singapore 2013 46.5 246.1 292.6 2014 158.6 2.0 160.6 Overseas 2013 24.5 40.7 65.2 2014 25.0 227.4 252.4 Total 254.6 516.2 770.8 •Specialist Civil Engineering Location Expected Government Non-Government Total Commencement S$’mil S$’mil S$’mil Singapore 2013 44.2 12.0 56.2 2014 220.6 - 220.6 Overseas 2013 256.0 - 256.0 2014 25.0 - 25.0 Total 545.8 12.0 557.8

Projects announced by Government (not included above): Qatar – Infrastructure North-south Expressway MRT Eastern Region Line 36 Growth Strategies and Plans

37 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 Thank You

39