Nordic Group Limited · SGX:MR7
Nordic — FY2015 Earnings Presentation
37 slides from Nordic's earnings presentation, March 2016
Slide 1: Nordic Group Limited FY15 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited FY15 Results Briefing
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. Business Overview 2. Financial Review 3. Investment Merits 3
Slide 4: Group Structure
Group Structure Nordic Group Limited 100% Nordic Flow Control Pte Ltd 100% 80% 100% 100% Avitools (Suzhou) Nordic Service Multiheight Austin Energy Co., Ltd. Centre Pte. Ltd. Scaffolding Pte. Ltd. (Asia) Pte. Ltd. 100% 100% 100% Nordic Flow Control Multiheight Austin Energy Offshore (Suzhou) Co., Lt
Slide 5: Business Overview
Business Overview OUR BUSINESS 1. System 2. Maintenance, Repair, 3. Precision 4. Scaffolding 5. Insulation Integration Overhaul (MRO) & Trading Engineering Services Services 5
Slide 6: 1. System Integration – Overview
1. System Integration – Overview With safety at sea as our priority, we offer a holistic and comprehensive suite of integrated solutions in areas of Marine, Navigation, and Automation, customised to cater to various vessel needs. MARINE SYSTEM Valve Remote Tank Gauging System Water Ingress Anti-Heel
Slide 7: 1. System Integration – Vessels
1. System Integration – Vessels Types of Vessels using Nordic’s Systems Semi-Submersible FPSO Drillship Jack-Up Container Vessel Submersible Barge LNG Pipe laying Vessel Bulk Carrier Chemical Tanker Oil Tanker AHTS 7
Slide 8: 1. System Integration – Clients
1. System Integration – Clients 8
Slide 9: Summary of System Integration - Clients in White List
Summary of System Integration - Clients in White List Total Number of shipyard: 45 shipyards Shipyard secured: 28 shipyards, 62% (wordings in Blue) Shipyard to be secured: 9 shipyards, 20% (wordings in Red) Shipyard to be followed-up: 8 shipyards 9
Slide 10: Shipyards in the White List
Shipyards in the White List SN Shipyard SN Shipyard SN Shipyard 1 Southern Liaoning Dalian Shipyard 17 Zhejiang Shipbuilding Co., Ltd. 31 Shanghai Waigaoqiao Shipbuilding Co., Ltd. 2 Jiangsu New Yangzi Shipbuilding Co., 18 Fujian Mawei Shipbuilding Co., Ltd. Ltd. 32 Shanghai Jiangnan Changxing Jiang
Slide 11: 2. MRO and Trading – Overview
2. MRO and Trading – Overview As part of our after-sales service, our dedicated team of consultants provides service support and oversees after-sales requests for maintenance, repairs and overhauls. Spares MRO & Actuators Trading Conversion / Upgrading Nordic Service Centre • Captive business with a
Slide 12: 2. MRO and Trading – Clients
2. MRO and Trading – Clients 12
Slide 13: 2. MRO and Trading – Global Network
2. MRO and Trading –Global Network Nordic Factory Sales & Service Office 13
Slide 14: 3. Precision Engineering - Overview
3. Precision Engineering - Overview We specialise in the design and building of tooling systems, and provision of turnkey production solutions. Our customers are mainly from the marine, oil and gas, aerospace, medical and electronic manufacturing services industries. Manufacturing of components for:
Slide 15: 3. Precision Engineering - Clients
3. Precision Engineering - Clients 15
Slide 16: 4. Scaffolding Services – Overview
4. Scaffolding Services – Overview One of the market leaders in metal scaffolding works with 25 years track record servicing the Oil & Gas, Construction and Marine Industry. Business Activities Quality Standing • Design, Erection, Modification • Ministry Of Manpower (MOM) approved scaffold contracto
Slide 17: 4. Scaffolding Services – Projects Summary
4. Scaffolding Services – Projects Summary Daily Plant Maintenance Project Turnaround / Shutdown Maintenance * • BASF Southeast Asia Pte Ltd • Aurora Project – ExxonMobil • Chevron Oronite • Invista Fibres • Celanese Expansion Project – • Celanese • Stolthaven Terminal Celanese • Lucite • Chemical I
Slide 18: 4. Scaffolding Services - Clients
4. Scaffolding Services - Clients 18
Slide 19: 5. Insulation Services – Overview
5. Insulation Services – Overview Group completed the acquisition of Austin Energy (“AE”) on June 2, 2015. Austin Energy specializes in comprehensive Insulation Services (primarily in Thermal Insulation) and Passive Fireproofing Services in the Petrochemical, Pharmaceutical, Marine and Oil and Gas I
Slide 20: 5. Insulation /PFP/Coating Services - Clients
5. Insulation /PFP/Coating Services - Clients 20
Slide 21: Awards and Accreditations
Awards and Accreditations Subsidiary List of some awards and accreditations received Nordic Flow Control • ANSI-ASQ accredited • ISO9001 certified • OHSAS18001 certified • Singapore SME500 Awards (2008- current) • Singapore Enterprise 50 Awards (2009) • Raad voor Accreditatie (Dutch Accreditation Co
Slide 22: Outline
Outline 1. Business Overview 2. Financial Review 3. Investment Merits 22
Slide 23: Financial Review: Financial Highlights
Financial Review Financial Highlights Unaudited Unaudited Change Audited Audited Change S$'000 4Q2015 4Q2014 (%) 12M2015 12M2014 (%) Revenue 21,108 20,559 3 80,491 72,424 11 Gross Profit 6,705 5,691 18 22,441 19,094 18 Gross Profit 31.8% 27.7% 4.1 ppts 27.9% 26.4% 1.5 ppts Margin (%) Profit Before T
Slide 24: Financial Review: Revenue breakdown by segment
Financial Review Revenue breakdown by segment Unaudited Unaudited Change Audited Audited Change S$'000 4Q2015 4Q2014 (%) 12M2015 12M2014 (%) Project Services 13,713 15,975 (14) 58,844 57,422 2 Maintenance Services 7,395 4,584 61 21,647 14,852 46 Others - - - - 150 (100) Total 21,108 20,559 3 80,491
Slide 25: Financial Review: Revenue and Profit Margin
Financial Review S$ Revenue and Profit Margin million 90 40% 35% 35% 80 35% 32% 70 30% 30% * 26% 26%* 28% 30% 60 24% 25% 50 20% 20% 40 15% 30 12% 15% 13% 10% 20 11% 11% 8% 9% 10 5% 4% 0 0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Revenue (LHS) Gross Margin Net Profit Margin * As announced in FY2
Slide 26: Financial Review: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Audited as at Unaudited as at Audited as at S$'000 31 December 2015 30 Sept 2015 31 December 2014 Current Assets 71,455 68,314 64,607 Non-current Assets 40,995 41,563 25,903 Current Liabilities [1] 40,941 39,891 33,909 Non-current Liabilities [1] 12,129 13,2
Slide 27: Financial Review: Balance Sheet Highlights
Financial Review Balance Sheet Highlights As at end of S$’000 FY2012 FY2013 FY2014 9M2015 FY2015 Total Borrowings 26,834 21,539 25,320 30,341 32,155 Cash and Cash 23,965 14,852 32,799 32,283 35,566 Equivalents Total Equity 40,703 46,190 53,291 56,708 59,380 Net Gearing Ratio* 0.07 0.14 (0.14)** (0.0
Slide 28: Financial Review: Order Book Summary
Financial Review S$ million Order Book Summary 45 40 35 30 25 20 39.7 38.9 39.2 32.5 15 30.0 10 19.4 5 0 FY10 FY11 FY12 FY13 FY14 FY15 Note: The order book summary does not include maintenance contracts from Scaffolding Services and AE Insulation business segments which are typically contracted over
Slide 29: Financial Review: Recent Contract Wins
Financial Review Recent Contract Wins Feb 19 - Total value: S$2.5m MHS : maintenance contract from repeat customer to cover new gas facility AE: supply of materials to new customer AE Offshore : provide labour and materials to perform acoustic piping insulation works for repeat customer. Jan 1
Slide 30: Outline
Outline 1. Business Overview 2. Financial Review 3. Investment Merits 30
Slide 31: Highlight of Investment Merits
Highlight of Investment Merits Established Market Player Healthy Order Book Strong track record, performing above Order book of S$39.2 million on hand, industry average excluding MHS and AE unit rate maintenance contracts Improved Dividend Payout - Half-yearly dividend payout for FY15 Established Ma
Slide 32: Investment Merits- Improved Earnings Quality
Investment Merits- Improved Earnings Quality Revenue Contribution by Segment FY2014 Illustrative (S$’M) 13.3 13% 29.0 29% 26.0 26% 32.9 32% Precision Engineering Scaffolding Services System Integration / MRO & Trading Pro Forma Insulation Services Analysis The acquisition of Multiheight Group in 201
Slide 33: Oil and Gas Upstream and Downstream Value Chain
Oil and Gas Upstream and Downstream Value Chain Upstream Downstream - Nordic Flow Control - Nordic Flow Control - Multiheight - Multiheight - Austin Energy - Austin Energy - Avitools
Slide 34: Nordic’s Share Buyback
Nordic’s Share Buyback Share Buyback Mandate* approved on 29 April 15 – EGM : CUMULATIVE % OF CUMULATIVE MONTH OF ACQUISITION QUANTITY TOTAL NO OF ISSUED VOLUME 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 20
Slide 35: Directors’ Share Purchases
Directors’ Share Purchases 09 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% 2 March 2016 : Director No. of shares held % shareholdings * Chang Yeh Hong
Slide 36: Dividend Payout
Dividend Payout Final / Interim / Amount ($) per Payment date Financial Year Special share To be announced 2015 Final 0.0065 Sept 8, 2015 2015 Interim 0.004 May 21, 2015 2014 Special 0.0025 May 21,2015 2014 Final 0.0025 May15, 2014 2013 Final 0.0025 May 15, 2013 2012 Final 0.0025 May 21, 2012 2011 F
Slide 37: Thank You
Building Momentum, Capturing Opportunities Thank You For more information, please contact: Financial PR Pte Ltd Investor Relations Consultants Romil Singh / Reyna Mei romil@financialpr.com.sg reyna@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65) 6438 0064