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TRANSCRIPT
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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
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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
• 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
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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
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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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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
• 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
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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