Nordic Group Limited · SGX:MR7
Nordic — 2Q2019 Earnings Presentation
21 slides from Nordic's earnings presentation, Sep 20, 2019
Slide 1: Nordic Group Limited 2Q2019 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited 2Q2019 Results Briefing 20 September 2019 www.n o rdicgro uplimited .co m 1
Slide 2: Disclaimer
Disclaimer • This presentation (this “Presentation”) has been prepared by Nordic Group Limited (“Nordic” or the “Company”) for information purposes only and has not been independently verified. It is not the intention to provide, and you may not rely on this Presentation as providing, a complete or
Slide 3: Outline
Outline 1. Financial Review 2. Business Outlook 3. Investment Merits 3
Slide 4: Highlights for 2Q2019 and 1H2019
Financial Highlights for 2Q2019 and 1H2019 2Q19 Revenue ↓19% 1H19 Revenue ↓17% 2Q19 EPS ↓45% $21.0m $40.5m 0.6 cents 2Q18: $26.1m 1H18: $48.8m 2Q2018: 1.1 cents 2Q19 Net profit ↓49% 1H19 Net profit ↓45% 1H19 EPS ↓45% $2.2m $4.3m 1.1 cents 2Q18: $4.4m 1H18: $7.8m 1H2018: 2.0 cents 2Q19 EBITDA ↓39% 1H
Slide 5: Financial Review
Financial Review Unaudited Unaudited Change Unaudited Unaudited Change S$'000 2Q2019 2Q2018 (%) HY2019 HY2018 (%) Revenue 21,038 26,075 (19) 40,544 48,783 (17) Gross Profit 5,344 7,159 (25) 10,681 14,004 (24) (2.1) (2.4)ppt Gross Profit Margin (1) 25.4% 27.5% 26.3% 28.7% ppts s Net Profit after Tax
Slide 6: Financial Review: Project and Maintenance Services Revenue
Financial Review ($’m) Project and Maintenance Services Revenue 30.0 25.0 3.8 20.0 5.5 9.6 6.9 8.8 15.0 11.3 10.0 17.3 17.8 15.6 16.3 14.2 14.4 13.5 5.0 9.6 8.8 9.8 - 2Q2010 2Q2011 2Q2012 2Q2013 2Q2014 2Q2015 2Q2016 2Q2017 2Q2018 2Q2019 project maintenance others Segment reporting was changed in 201
Slide 7: 2Q Revenue and Gross Profit Margins
Financial Review ($m) 2Q Revenue and Gross Profit Margins 30.0 40% 25.0 35% 34% 34% 35% 30% 31% 30% 20.0 27% 25% 25% 22% 15.0 20% 20% 20% 24.0 26.1 21.1 21.8 15% 10.0 21.0 17.3 15.6 17.8 10% 5.0 9.6 8.8 5% 0.0 0% 2Q2010 2Q2011 2Q2012 2Q2013 2Q2014 2Q2015 2Q2016 2Q2017 2Q2018 2Q2019 2Q2010 and 2011 w
Slide 8: 2Q Net Profit and Net Profit Margins
Financial Review ($m) 2Q Net Profit and Net Profit Margins 5.0 25% 4.5 22% 4.0 20% 3.5 17% 15% 15% 3.0 14% 14% 2.5 12% 11% 2.0 4.4 10% 8% 3.7 1.5 3.1 1.0 2.1 2.4 2.6 2.2 5% 2% -1% 1.2 0.5 0% 0.2 0.0 2Q2010 2Q2011 2Q2012 2Q2013 2Q2014 2Q2015 2Q2016 2Q2017 2Q2018 2Q2019 -0.5 -0.1 -5% 2Q2010 and 2011 w
Slide 9: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Audited as at Unaudited as at S$'000 31 December 30 June 2019 2018 Current Assets (1) 86,096 92,042 Non-current Assets 63,499 59,818 Current Liabilities (2) 50,619 58,045 Non-current Liabilities 15,308 12,823 Total Equity 83,668 80,992 Cash and Cash Equivale
Slide 10: Borrowings, Cash and Net Gearing
Financial Review As at end of 30 June S$’000 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 2019 Total 26,834 21,539 25,320 32,155 28,085 46,612 48,807 42,725 Borrowings Cash and Cash 23,965 14,852 32,799 35,566 32,325 40,291 39,232 38,429 Equivalents Net Debt/(Cash) 2,869 6,687 (7,479) (3,411) (4
Slide 11: Order Book Summary
Financial Review Order Book Summary (S$’m) 120 100 80 48.3 48 60 40.7 40 50.4 44.7 43.2 20 39.7 30 30.9 39.2 19.4 21.6 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 2Q2019 - Project - Maintenance Note: The order book from FY2011 to FY2016 does not include maintenance contracts as they do
Slide 12: Sale of Properties
Sale of Properties • 24 Benoi Place (land area: 39,052 sq ft; gross floor area: 45,090 sq ft; current market value: $5.8 million; Tenure: 12.5 years) • 133 Tuas View Square (land area: 7,231 sq ft; gross floor area: 10,200 sq ft; 5 years commercial dormitory license from April 2019; current market v
Slide 13: Business Outlook: General Business Outlook
Business Outlook General Business Outlook • Nordic Group serves the marine, oil and gas industries whose operating environment and business conditions remain challenging. • Sustainability of oil price recovery • Fluctuations in the exchange rate of the US dollar against the Singapore dollar and trad
Slide 14: Revenue Contribution by Businesses
Diversified Model – Improved Earnings Quality FY2017 FY2018 FY2016 1H2019 1.4, 2% 3.8, 4% 12.1, 13% 11.9, 13% 12.3, 13% 5.6, 14% 12.5, 13.9, 15% 21.8, 9.5, 23% 15% 27% 15.6, 17% 19, 21% 8.2, 20% 19.2, 21% 19.8, 22% 6.1, 15% 30.3, 17.4, 37% 21% 11.2, 28% 31.1, 34% 23.1, 25% System Integration / MRO &
Slide 15: Revenue Contribution by Industry
Diversified Model – Improved Earnings Quality FY2016 FY2017 FY2018 2Q2019 1% 6% 6% 3% 3% 20% 13% 18% 18% 4% 3% 18% 4% 4% 4% 36% 3% 3% 5% 4% 7% 5% 8% 5% 3% 5% 7% 41% 41% 42% 4% 53% 3% Onshore/Downstream Marine/Upstream Revenue Contribution by Industry Electronics Manufacturing System Onshore/Infrastr
Slide 16: Investment Merits
Investment Merits Established Market Player Healthy Order Book Strong track record, performing above Order book of approximately S$83.9 industry average million on hand, including maintenance contracts. Contract winning momentum of S$18.6 million secured up to 9 May 19. Established Management with P
Slide 17: Dividend Payout
Dividend Payout Final / Interim / Amount per share Payment date Financial Year Payout ratio Special (cents) Sep 5, 2019 2019 Interim 0.429 May 14, 2019 Final 0.353 2018 Sep 5, 2018 Interim 0.779 May 14, 2018 Final 0.873 2017 Sep 5, 2017 Interim 0.653 40% May 12, 2017 Final 0.731 Sep 2, 2016 2016 Int
Slide 18: Nordic's Share Buyback
Nordic’s Share Buyback – renewed on 26 April 2018 AGM CUMULATIVE % OF TOTAL NO MONTH OF ACQUISITION QUANTITY CUMULATIVE VOLUME OF ISSUED SHARES ** Share Buyback by way of Market Acquisition September 2015 1,086,500 1,086,500 0.27 October 2015 1,800,100 2,886,600 0.72 November 2015 346,400 3,233,000
Slide 19: Nordic's Share Buyback
Nordic’s Share Buyback – renewed on 26 April 2018 AGM CUMULATIVE % OF TOTAL NO MONTH OF ACQUISITION QUANTITY CUMULATIVE VOLUME OF ISSUED SHARES ** Share Buyback by way of Market Acquisition June 2017 32,000 6,887,100 1.72 March 2018 53,000 6,940,100 1.74 April 2018 15,000 6,955,100 1.74 September 20
Slide 20: Directors' and Executive Officer's Share Purchases
Directors’ and Executive Officer’s Share Purchases 9 November 2010 – IPO : Director No. of shares held % shareholdings Chang Yeh Hong 200,480,625 50.12% Eric Lin Choon Hin 43,500,000 10.88% Dorcas Teo Ling Ling 29,000,000 7.25% 272,980,625 68.25% 4 September 2019 : Director / Executive Officer No. o
Slide 21: Thank You
Building Momentum, Capturing Opportunities Thank You For more information, please contact Financial PR Pte Ltd Investor Relations Consultants Romil Singh / Colin Lum romil@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65) 6438 0064 www.n o rdicgro uplimited .co m 21