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 Southeast Asia 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$705 million •Part of 26-km long HK section of the Guangzhou- Shenzhen-Hong Kong Express Rail Link running from West Kowloon to Shenzhen •Design, supply, installation and removal of strut and walers •Cofferdam excavation of cut and cover tunnels and emergency rescue sidings •Construction of temporary bridge •Expected completion between 2014 to 2016 21 1H FY2013 Financial Performance 22 1H FY2013 Financial Performance 2Q 2Q Change 1H 1H Change FY2013 FY2012 (%) FY2013 FY2012 (%) Revenue (S$’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