Slide 1: Nordic Group Limited FY18 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited FY18 Results Briefing 28 February 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: Key Highlights
Key Highlights 4Q2018 Revenue + 4% to S$21.5 million 4Q2018 Net Profit - 95% to S$0.2 million FY2018 Revenue + <1% to S$91.7 million FY2018 Net Profit - 26% to S$11.3 million Outstanding Order Book (including maintenance contracts) of S$92.7 million. 2018 Contract Winning Momentum of S$75.7 million
Slide 5: Financial Review
Financial Review Unaudited Unaudited Change Unaudited Audited Change S#039;000 4Q2018 4Q2017 (%) FY2018 FY2017 (%) Revenue 21,525 20,753 4 91,694 91,537 1 Gross Profit 3,633 7,207 (50) 23,326 30,440 (23) (18) Gross Profit Margin 16.9% 34.7% 25.4% 33.3% (8) ppts ppts Net Profit after Tax 218 4,347 (95)
Slide 6: Financial Review: Revenue and Profit Margin
Financial Review Revenue and Profit Margin 100 40 1.4 90 3.8 35 35 33 50.1 80 31 30 70 28 26 26 53.5 25 25 60 24 20 21 50 58.9 60.5 20 48.4 57.4 17 17 40 44.1 16 15 13 30 39.9 12 11 10 9 20 8 36.6 37.8 9.6 11 5 10 4 17.8 21.6 21.4 16.2 15 9.9 11.2 10.5 0 1 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Slide 7: Financial Review
Financial Review Lower net profits in 4Q2018 is due to One off event for right sizing system Specific projects of integration lower margins business and factories relocation 7
Slide 8: Revenue breakdown by segment
Financial Review Revenue breakdown by segment Unaudited Unaudited Change Unaudited Audited Change S$ ‘000 4Q2018 4Q2017 (%) FY2018 FY2017 (%) Project Services 10,992 9,588 15 50,089 53,486 (6) Maintenance 10,533 11,165 (6) 37,818 36,664 3 Services Others - - - 3,787 1,387 173 Total 21,525 20,753 4 9
Slide 9: Revenue Breakdown by Segment
Financial Review Revenue Breakdown by Segment FY2016 FY2018 FY 2015 FY2017 3.8, 4% 1.4, 2% 21.6, 27% 21.5, 26% 36.7, 40% 37.8 , 41% 53.5, 58% 50.1 , 55% 58.8, 73% 60.5, 74% Project Maintenance Carbon allowances • Revenue from Maintenance Services is boosted by contributions from Ensure since FY2017
Slide 10: Net Profit
Financial Review Net Profit (S$’m) 18 16 15.3 14 12.7 12 11.3 10.5 10 7.9 8 6.1 6 4.6 4 1.8 2 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 10
Slide 11: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Unaudited as at Audited as at S#039;000 31 December 31 December 2017 2018 Current Assets (1) 92,042 99,041 Non-current Assets 59,818 52,268 Current Liabilities (2) 58,045 57,922 Non-current Liabilities 12,823 16,773 Total Equity 80,992 76,614 Cash and Cash Equi
Slide 12: Borrowings, Cash and Net Gearing
Financial Review As at end of S$’000 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Total Borrowings 26,834 21,539 25,320 32,155 28,085 46,612 48,807 Cash and Cash 23,965 14,852 32,799 35,566 32,325 40,291 39,232 Equivalents Net Debt/(Cash) 2,869 6,687 (7,479) (3,411) (4,240) 6,321 9,575 Net Geari
Slide 13: Order Book Summary
Financial Review Order Book Summary (S$’m) 60 50.4 50 48.3 48 44.7 39.7 39.2 40 30 30.9 30 21.6 19.4 20 10 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 - Project - Maintenance Note: The order book from FY2011 to FY2016 does not include maintenance contracts as they do not have a contrac
Slide 14: Recent Contract Winning Momentum
Financial Review Recent Contract Winning Momentum Feb 21, 2019 - Total value: S$12.9m Scaffolding, Precision Engineering and System Integration: capital contracts from repeat customers for scaffolding works, machining and mechanical assembly and supply of electric actuators, valves, sensors and ta
Slide 15: Recent Contract Winning Momentum
Financial Review Recent Contract Winning Momentum May 3, 2018 - Total value: S$6.1m Scaffolding and Insulation: ad-hoc contracts for scaffolding and insulation works from repeat customers Petrochemical : contracts from new and repeat customers for the provision of test skid support equipment and
Slide 16: Sale of Properties
Sale of Properties • 42 Tech Park sold on 12 Jan 2018 at $3.425m. Valuation: $3.3m • 5 Kwong Min Road sold in August 2018. Offer price: $2.425m. Valuation: $2m • 24 Benoi Place (land area: 39,052 sq ft; gross floor area: 45,090 sq ft; current market value: $5.8 million; Tenure: 13 years) • 133 Tuas
Slide 17: Business Outlook: Upstream Oil & Gas
Business Outlook 31/10/2017 31/01/2019 Global 2077 2264 Asia 213 232 Source: Baker Hughes Oil Rig Count, Bloomberg, 31 January 2019 Source: Brent Crude 5-Year Chart , Macro trends, 19 February 2019 Upstream Oil & Gas Outlook • Brent crude oil prices hit a high of approximately US$86 per barrel in ea
Slide 18: Business Outlook: Marine & Shipbuilding
Business Outlook Monthly 30/12/2017 30/12/2018 Total No. of New Build 1,036 1,204 Orders Note: Annual Figures Legend: Number of Vessels V Total DWT Source: Global New Build Orders, E World Ship, September 2018 Marine & Shipbuilding Outlook • Total number of new build orders have increased from a tot
Slide 19: General Business Outlook
Business Outlook General Business Outlook • Nordic Group serves largely the marine, oil and gas industries which operating environment and business conditions remained challenging • Sustainability of oil price recovery • Fluctuations in the exchange rate of the US dollar against the Singapore dollar
Slide 20: Acquisition Track Record
Acquisition Track Record 2011 2015 2017 Multiheight Austin Energy Ensure Engineering • Acquired for around S$29m • Acquired for around S$26m • Acquired for around S$17m • Design, erection, • Specialize in thermal • Specialize in engineering modification dismantling insulation, fireproofing and repai
Slide 21: Diversified Model – Improved Earnings Quality
Diversified Model – Improved Earnings Quality Revenue Contribution by Businesses FY2017 FY2018 FY2016 1.4, 2% 3.8, 4% 12.5, 11.9, 13% 12.3, 13% 12.1, 13% 21.8, 13.9, 15% 15% 27% 15.6, 17% 19, 21% 19.2, 21% 17.4, 30.3, 19.8, 22% 21% 37% 31.1, 34% 23.1, 25% System Integration / MRO & Trading Scaffoldi
Slide 22: Diversified Model – Improved Earnings Quality
Diversified Model – Improved Earnings Quality Revenue Contribution by Industry FY2018 FY2015 FY2016 FY2017 6% 6% 2%3% 3% 3% 13% 4% 4% 4% 20% 18% 4% 4% 4% 4% 6% 36% 3% 4% 5% 7% 5% 50% 5% 3% 31% 7% 41% 42% 53% Onshore/Downstream Marine/Upstream Electronics Manufacturing System Onshore/Infrastructure A
Slide 23: Investment Merits
Investment Merits Established Market Player Healthy Order Book Strong track record, performing above Order book of approximately S$92.7 industry average million on hand, including maintenance contracts. Contract winning momentum of S$75.7 million secured up to 9 Nov 2018. Established Management with
Slide 24: Investment Scorecard
Investment Scorecard FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 Share price (cents) 0.35 0.56 0.25 0.19 0.11 0.11 Market Capitalisation 137.4 220 98 75 43 42 EPS (cents) 3 3.9 3.2 2.6 2.0 1.5 PE Ratio 13.79 14.36 7.81 7.27 5.40 7.07 Dividend Yield 4.13 2.73 5.08 5.56 2.31 2.36 Current Ratio 1.59 1.71
Slide 25: Dividend Payout
Dividend Payout Final / Interim / Amount per share Payment date Financial Year Payout ratio Special (cents) To be announced 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 2016 Sep 2, 2016 Interim 0.5372 May, 13 2016 Fin
Slide 26: Nordic's Share Buyback
Nordic’s Share Buyback – renewed on 26 April 2018 AGM CUMULATIVE % OF TOTAL NO OF MONTH OF ACQUISITION QUANTITY CUMULATIVE VOLUME ISSUED SHARES ** Share Buyback by way of Market Acquisition January 2016 479,000 5,148,200 1.29 March 2016 352, 000 5,500,200 1.37 April 2016 397,500 5,897,700 1.47 6,172
Slide 27: 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% 27 February 2019 : Director / Executive Officer No. o
Slide 28: 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 28