Nordic Group Limited · SGX:MR7
Nordic — H1 2016 Earnings Presentation
42 slides from Nordic's earnings presentation, Aug 16, 2016
Slide 1: Nordic Group Limited 1H2016 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited 1H2016 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. Business Outlook 4. Investment Merits 3
Slide 4: Business Overview
Business Overview OUR BUSINESSES 1. System 2. Maintenance, Repair, 3. Scaffolding 4. Insulation 5. Precision Integration Overhaul (MRO) & Trading Services Services Engineering 4
Slide 5: System Integration – Overview
System Integration – Overview With safety at sea as our priority, we offer a holistic and comprehensive suite of integrated solutions in areas of Flow, Navigation and Automation, customised to cater to various vessel needs. 5
Slide 6: System Integration – Vessels
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 6
Slide 7: System Integration – Clients
System Integration – Clients 7
Slide 8: System Integration – Target Shipyards List
System Integration – Target Shipyards List Based on China’s White List Total number of targeted shipyards: 39 shipyards Shipyards secured: 25 shipyards, 64.1% (wordings in Blue) Shipyards to be secured: 9 shipyards, 23.1% (wordings in Red) Shipyards to be followed-up: 5 shipyards 8
Slide 9: System Integration – Target Shipyards List
System Integration – Target Shipyards List Based on China’s White List SN SHIPYARD SN SHIPYARD SN SHIPYARD Bohai Shipbuilding Heavy Industry Penglai Bo Jing Lu Shipbuilding Co., China Shipping Industry 1 13 27 Co., Ltd. Ltd (Jiangsu) Co., Ltd. 2 COSCO Dalian Shipyard Co., Ltd. Qingdao Beihai Shipbui
Slide 10: MRO and Trading – Overview
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. • Captive business with an existing pool of over 1,000 vessels with our systems installed • Numbers are
Slide 11: MRO and Trading – Clients
NORDIC NA MRO and Trading - Clients © MODEC QE Lundin _| BUMIARMADA a a Gli] PETROBRAS “Wransocean Reema iwi A PETRONAS Petrofac OERSHORE PETROV/ETNAM ie El gnon ER Saipem €9 Prosafe MAERSK BERNHARD ScHu.TE Wal te = —— SHIPMANAGEMENT al VShips SAIPEM 11
Slide 12: MRO and Trading – Global Network
MRO and Trading –Global Network Nordic Offices Existing Presence (Agents) 12
Slide 13: Scaffolding Services – Overview
Scaffolding Services – Overview One of the market leaders in metal scaffolding works with 25 years of track record servicing the Oil & Gas, Petrochemical, Construction and Marine Industry. Ministry Of Manpower (MOM) approved scaffold contractor First scaffold contractor in Singapore to be awarded th
Slide 14: Scaffolding Services – Projects Summary
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 Indu
Slide 15: Scaffolding Services - Clients
Scaffolding Services - Clients 15
Slide 16: Insulation Services – Overview
Insulation Services – Overview Acquired by the Group on June 2, 2015, Austin Energy Asia Pte Ltd and its subsidiary, Austin Energy Offshore Pte Ltd (formerly known as KKH (2003) Engineering Enterprises Pte Ltd), services the Petrochemical, Pharmaceutical, Marine and Oil and Gas Industries. Areas of
Slide 17: Insulation /PFP/Coating Services - Clients
Insulation /PFP/Coating Services - Clients 17
Slide 18: Precision Engineering - Overview
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: Ae
Slide 19: Precision Engineering - Clients
Precision Engineering - Clients 19
Slide 20: 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 20
Slide 21: Awards and Accreditations
Awards and Accreditations Subsidiary List of some awards and accreditations received Nordic Flow Control • ANSI-ASQ accredited Pte Ltd • ISO9001 certified • OHSAS18001 certified • Singapore SME500 Awards (2008- current) • Singapore Enterprise 50 Awards (2009) • Raad voor Accreditatie (Dutch Accredit
Slide 22: Outline
Outline 1. Business Overview 2. Financial Review 3. Business Outlook 4. Investment Merits 22
Slide 23: Financial Highlights
Financial Review Financial Highlights Unaudited Unaudited Change Unaudited Unaudited Change S$'000 2Q2016 2Q2015 (%) 1H2016 1H2015 (%) Revenue 21,812 21,055 4 41,623 37,668 11 Gross Profit 6,864 5,552 24 13,154 9,553 38 Gross Profit 31.5% 26.4% 5.1 ppts 31.6% 25.4% 6.2 ppts Margin Profit After Tax *
Slide 24: Revenue breakdown by segment
Financial Review Revenue breakdown by segment Unaudited Unaudited Change S$ million 1H2016 1H2015 (%) Project Services 31.5 27.2 16.0 Maintenance 10.1 10.4 (3.0) Services Total 41.6 37.6 11 24
Slide 25: Revenue and Profit Margin
Financial Review S$ million Revenue and Profit Margin 90 35% 32% 80 28% 30% 26% 70 26% 24% 25% 25% 60 19% 50 20% 40 13% * 15% 13% 11% 11% 30 9% 8% 10% 20 4% 10 5% 0 0% FY11 FY12 FY13 FY14 FY15 1H15 1H16 Revenue Gross Margin Net Profit Margin 25
Slide 26: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Unaudited as at Audited as at S$'000 30 June 2016 31 December 2015 Current Assets 69,389 71,455 Non-current Assets 40,074 40,995 Current Liabilities 37,892 40,941 Non-current Liabilities 9,982 12,129 Total Equity [1] 61,589 59,380 Cash and Cash Equivalents 3
Slide 27: Balance Sheet Highlights
Financial Review Balance Sheet Highlights As at end of S$’000 FY2012 FY2013 FY2014 FY2015 1H2016 Total Borrowings 26,834 21,539 25,320 32,155 33,097 Cash and Cash 23,965 14,852 32,799 35,566 32,992 Equivalents Total Equity 40,703 46,190 53,291 59,380 61,589 Net Gearing Ratio* 0.07 0.14 (0.14)** (0.0
Slide 28: 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 26.6 10 19.4 5 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16* Note: The order book summary does not include maintenance contracts from Scaffolding Services and Insulation services which are typically contracted over
Slide 29: Recent Contract Winning Momentum
Financial Review Recent Contract Winning Momentum Jul 06, 2016 - Total value: S$4.2m NFC : supply of valve remote control and tank gauging systems for a new customer AEA: supply of labour to carry out insulation works at an oil major’s refinery MHS & AEA maintenance contracts with a repeat customer
Slide 30: Recent Contract Winning Momentum
Financial Review Recent Contract Winning Momentum Feb 19, 2016 - Total value: S$2.5m MHS : maintenance contract from repeat customer to cover new gas facility AEA: supply of materials to new customer AEO: provide labour and materials to perform acoustic piping insulation works for repeat customer. J
Slide 31: Outline
Outline 1. Business Overview 2. Financial Review 3. Business Outlook 4. Investment Merits 31
Slide 32: Business Outlook
Business Outlook • Our businesses serving largely the marine, oil and gas industries remain challenging. Amidst persistent weak oil prices, fluctuations in the exchange rate of the US dollar against the Singapore dollar and more recently the contagion effect from the fallout of some of the local oil
Slide 33: Business Outlook – Upstream Oil & Gas Remains Challenging
Business Outlook – Upstream Oil & Gas Remains Challenging Upstream Downstream - Nordic Flow Control - Nordic Flow Control - Multiheight - Multiheight - Austin Energy - Austin Energy - Avitools 33
Slide 34: Risk Management- Reduced Reliance on SI
Risk Management- Reduced Reliance on SI Revenue Contribution by Segment FY2015 (S$’M) 1H2016 (S$’M) 12.8, 9.3, 6.3, 16% 12% 12.1, 15% 29% 23.7, 29% 13.5, 34.8, 9.7, 32% 43% 23% System Integration / MRO & Trading Acquisition of AE was completed on 2 Jun 2015. Scaffolding Services Insulation Services
Slide 35: Risk Management– SI Expansion into General Industries
Risk Management– SI Expansion into General Industries Provision of PLC-based automation solutions for general industries, utilising existing expertise in industrial automation software. Completed projects include: Changi Airport Ng Teng Fong General Hospital, GCP Applied Technologies Cargo Terminals
Slide 36: Outline
Outline 1. Business Overview 2. Financial Review 3. Business Outlook 4. Investment Merits 36
Slide 37: Highlight of Investment Merits
Highlight of Investment Merits Healthy Order Book Established Market Player Order book of approximately S$26.6 Strong track record, performing above million on hand, excluding scaffolding industry average and insulation unit rate maintenance contracts Established Management Improved Dividend Payout
Slide 38: Investment Merits – Improved Earnings Quality
Investment Merits – Improved Earnings Quality Revenue Contribution by Segment FY2015 (S$’M) 1H2016 (S$’M) 12.8, 9.3, 6.3, 16% 12% 12.1, 15% 29% 23.7, 29% 13.5, 34.8, 9.7, 32% 43% 23% System Integration / MRO & Trading Acquisition of AE was completed on 2 Jun 2015. Scaffolding Services Insulation Ser
Slide 39: Nordic's Share Buyback
Nordic’s Share Buyback Share Buyback Mandate* approved on 29 April 15 – EGM (renewed on 27 April 2016 – AGM): CUMULATIVE % OF CUMULATIVE MONTH OF ACQUISITION QUANTITY TOTAL NO OF ISSUED VOLUME SHARES ** Share Buyback by way of Market Acquisition September 2015 1,086,500 1,086,500 0.27 October 2015 1
Slide 40: Directors' Share Purchases
Directors’ Share Purchases 09 November 2010 – IPO : Director No. of shares held % shareholdings Chang Yeh Hong 200,480,625 50.12% Eric Lin Choon Hin 43,500,000 10.88% Dorcas Teo Ling Ling 29,000,000 7.25% 272,980,625 68.25% 30 April 2016 : Director No. of shares held % shareholdings * Chang Yeh Hong
Slide 41: Dividend Payout
Dividend Payout Final / Interim / Amount ($) Payment date Financial Year Payout ratio Special per share Sep 2, 2016 2016 Interim 0.005372 May, 13 2016 2015 Final 0.0065 40% Sep 8, 2015 2015 Interim 0.004 May 21, 2015 2014 Special 0.0025 25% May 21,2015 2014 Final 0.0025 May15, 2014 2013 Final 0.0025
Slide 42: 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 colinlum@financialpr.com.sg Tel: (65) 6438 2990 Fax: (65) 6438 0064 www. n o rdicgro uplimited . co m