Nordic Group Limited · SGX:MR7
Nordic — H1 2024 Earnings Presentation
26 slides from Nordic's earnings presentation, Aug 20, 2024
Slide 1: 1H2024 Results Presentation
Sustainable Growth: Rooted in Excellence 1H2024 Results Presentation 20 August 2024
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: 1H2024 Highlights
1H2024 Highlights Revenue Gross Margin Net Profit Gearing Ratio S$76 m 23% S$8.5 m 28% 1H24 vs : 7% ↑ 1H24 vs : 3 ppts ↑ 1H24 vs : 45% ↑ 1H24 vs 2H23 : 2 ppts ↓ 2H23 2H23 2H23 1H24 vs : 15% ↓ 1H24 vs : 2 ppts ↓ 1H24 vs : 16% ↓ 1H24 vs 1H23 : 7 ppts ↓ 1H23 1H23 1H23 Orderbook replenished with growth
Slide 4: 1H2024 Revenue Trends
1H2024 Revenue Trends Revenue and gross margin improved sequentially in 1H2024, largely driven by the Group’s effective orderbook replenishment efforts that generated additional revenue streams Revenue and GM Trend by Year Revenue and GM Trend by Half-year 35% 140 240 32.00% 28.1% 28.9% 30% 27.0% 12
Slide 5: 1H2024 EBITDA Trends
1H2024 EBITDA Trends EBITDA margin improved on both sequential and YoY basis EBITDA and EBITDA Margin Trend EBITDA and EBITDA Margin Trend by Year 40 by Half-year 30% 49.9 35 25% 19.4% 39.9 18.4% 18.5% 20.00% 30 21.5% 17.1% 18.5% 20% 14.9% 25 17.4% 17.5% 16.8% 15.00% 29.9 20 15% 10.00% 19.9 15 10% 3
Slide 6: 1H2024 Net Profit Trends
1H2024 Net Profit Trends In line with revenue recovery, both net profit and net profit margin improved sequentially in 1H2024 Net Profit and Net Profit Margin Net Profit and Net Profit Margin Trend by Year 30 Trend by Half-year 20% 40 18.00% 18% 25 16.00% 35 16% 14.6% 13.5% 12.8% 14.00% 14% 30 20 11
Slide 7: 1H2024 NAV Trends
1H2024 NAV Trends Continuous NAV improvement from value-accretive acquisitions NAV and NAV per Share Trend by NAV and NAV per Share Trend by Year 180 Half-year 35.00 35.00 160 160 30.9 30.9 29.4 29.4 27.5 30.00 140 28.9 30.00 140 27.5 25.2 26.3 120 120 22.8 25.00 25.00 100 100 20.00 20.00 80 80 15.0
Slide 8: 1H2024 Net Gearing Ratio Trend
1H2024 Net Gearing Ratio Trend Net gearing ratio decreased by 2 ppts to 28% for 1H2024 compared to FY2023 due to increase in earnings for 1H2024 Net Debt Total Tangible Equity Net Gearing Ratio 30% 100,000 28% 24% 80,370 25% 80,000 19% 74,041 13% 15% 60,000 40,000 36,929 5% 2% 22,250 22,690 -5% 20,0
Slide 9: Contracts Win
Contracts Win June 4, 2024 - Total value: S$90.8 m System Integration: manufacture of valves and actuators, control and tank gauging systems Precision Engineering: capital contracts for machining and mechanical assembly Scaffolding and Insulation: Maintenance work at petrochemical industries
Slide 10: Contracts Win
Contracts Win August 20, 2024 - Total value: S$32.6 m System Integration: manufacture of valves and actuators, control and tank gauging systems for FPSO and series vessels Precision Engineering: capital contracts for machining and mechanical assembly Scaffolding and Insulation: Maintenance wor
Slide 11: Details of Significant Contracts Secured for YTD2024
Details of Significant Contracts Secured for YTD2024 1) Project revenue: System Integration, S$17.7m • Manufacture of valves and actuators for 2 FPSOs • Manufacture of valves, actuators and controls systems for series vessels of 61 in total. Each series consists of 20 to 25 vessels. This has incre
Slide 12: Catalyst for the Marine and Offshore System Integration Business to Outperform
Catalyst for the Marine and Offshore System Integration Business to Outperform 12
Slide 13: Significant Contracts Secured YTD2024 - Series Vessels
Significant Contracts Secured YTD2024 - Series Vessels 40,400 DWT Bulk Carrier 7000 CEU LNG dual-fuel pure car, 18,500-ton IMO Class II Chemical Tankers truck carrier ( PCTC) 52 vessels 3 vessels 6 vessels Note – We supply in total 40 vessels from Year 2022 to 2024 61 vessels secured 13
Slide 14: Significant Contract Secured in YTD2024 - FPSO
Significant Contract Secured in YTD2024 - FPSO For illustration Purposes Project Name Valve Remote Control System Builder CIMC RAFFLES Owner Petrobras Vessel Type Floating Production Storage & Offloading Vessel Name P-84 and P-85 Class ABS 14
Slide 15: Valve Remote Control System
Valve Remote Control System Valve Remote Control System • Flexible cost effective modular design • Customised to suit any Ship Automation application for hydraulic, Processing Cabinet System pneumatic, electro- hydraulic or electric system SAFE HAZARDOUS AREA AREA •Enables valves to be operated by a
Slide 16: Hydro-Static Pressure System
Hydro-Static Pressure System Hydro-Static Pressure System Processing Cabinet Control Stations Non-Contact Radar Guided Radar Pressure Transmitter Pressure Transmitter Level Switch Transmitter Transmitter - Side Mounting - Top Mounting 16
Slide 17: Market Outlook
Market Outlook Factors that attributed to the growing Marine and Offshore Market Geopolitical Environmental Technological Economic Growth Marine Energy Factors Regulations Advancements and Trade • The growth in the • Changes in • Stringent • Innovations in • Global marine energy global regulations o
Slide 18: Market Outlook in 1H2024
Market Outlook in 1H2024 List of the top 30 shipbuilding groups in the world by order book There are 1127 new ship orders worldwide in the first half of 2024 Among the top 30 shipbuilding groups in the world there are 17 China companies of which 11 have Nordic in their maker’s list , 5 Korean compan
Slide 19: Major Shipyards in China
Major Shipyards in China Our Targets 19
Slide 20: Our Customers (FPSO)
Ny Our Customers (FPSO) tod “gM OB ZN W PETROBRAS __ ShapoorjiPallonji BUMIARMADA eG MODEC Ww BW OFFSHORE HLL i CM Z= Seatrium Ah DYNA-MAG
Slide 21: Revenue Contribution by Services
Revenue Contribution by Services FY2023 (S$’M) 1H2024 (S$’M) 6.3, 17.6, 8% 22.2, 14% 11% 15.1, 20% 10.5, 14% 21.8, 13% 9.2, 12% 50.3, 31% 18.9, 12% 18.4, 24% 6.8, 11.0, 9% 18.8, 7% 9.9, 13% 12% System Integration / MRO & Trading Note: Above includes inter-segment eliminations Scaffolding Services In
Slide 22: Revenue Contribution by Industry
Revenue Contribution by Industry FY2021 FY2022 FY2023 1H2024 14% 17% 12% 14% 12% 12% 17% 15% 3% 1% 1% 13% 18% 18% 10% 13% 15% 1% 1% 25% 2% 1% 2% 28% 5% 5% 1% 2% 5% 10% 2% 3% 31% 3% 5% 8% 2% 32% 20% 1% Reclassification of 4% was done from EMS to Semiconductor in Onshore/Downstream 12M2022 for Precisi
Slide 23: Consistent Dividend Payments
Consistent Dividend Payments Dividend (SG cents) Dividend Payout Ratio 4.000 56% 60% 3.500 50% 50% 3.000 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 2.500 30% 2.068 2.000 30% 25% 1.740 22% 1.526 1.589 1.500 1.268 16% 1.132 20% 1.050 1.000 0.848 0.853 0.530 0.500 0.549 10% 0.500 0.250 0.250 0.250 0.000 0
Slide 24: Insider Share Purchases
Insider 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% 10 June 2024: Director / Executive Officer No. of shares held % shareholdings* C
Slide 25: Share Buyback
Share Buyback renewed in AGM on 29 April 2024 CUMULATIVE % OF TOTAL NO MONTH OF ACQUISITION QUANTITY CUMULATIVE VOLUME OF ISSUED SHARES ** Share Buyback by way of Market Acquisition May 2022 263,900 263,900 0.07 Jan 2024 31,500 295,400 0.07 May 2024 253,800 549,200 0.14 Jun 2024 181,600 730,800 0.18
Slide 26: Thank you for your time
Thank you for your time . 2 Tuas Avenue 10, Singapore 639126 +65 6848 4400 ir@nordicgrouplimited.com www.nordicgrouplimited.com For more information, please contact Financial PR Pte Ltd Investor Relations Consultants Building Momentum, Capturing Opportunities Kamal Samuel: kamal@financialpr.com.sg +