Nordic Group Limited · SGX:MR7
Nordic — FY2019 Earnings Presentation
21 slides from Nordic's earnings presentation, March 2020
Slide 1: Nordic Group Limited FY2019 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited FY2019 Results Briefing 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 4Q2019 and 12M2019
Financial Highlights for 4Q2019 and 12M2019 4Q19 Revenue ↑8% 12M19 Revenue ↓8% 4Q19 EPS ↑200% $23.2m $84.6m 0.3 cents 4Q18: $21.5m 12M18: $91.7m 4Q2018: 0.1 cents 4Q19 Net profit 12M19 Net profit 12M19 EPS ↓24% ↑480% ↓25% $1.3m $8.5m 2.2 cents 12M2018: 2.9 cents 4Q18: $0.2m 12M18: $11.3m 4Q19 EBITDA
Slide 5: Financial Review
Financial Review Unaudited Unaudited Change Unaudited Unaudited Change S$'000 4Q2019 4Q2018 (%) 12M2019 12M2018 (%) Revenue 23,190 21,525 8 84,627 91,694 (8) Gross Profit 5,985 3,633 65 21,274 23,326 (9) Gross Profit Margin (1) 26% 17% 9 ppts 25% 25% - Net Profit after Tax 1,265 218 480 8,480 11,325
Slide 6: 4Q Revenue and Gross Profit and Net Profit Margins
Financial Review 4Q Revenue and Gross Profit and Net Profit Margins 8 40.0% 35.0% 7 35.0% 30.0% 6 29.0% 29.0% 30.0% 28.0% 26.0% 5 24.0% 25.0% 21% 20% 4 20.0% 17.0% 16% 3 14% 15.0% 12% 2 10.0% 7% 5% 1 5.0% 1% 3.6 5.6 5.0 6.0 5.6 7.2 3.6 6.0 0 0.0% 4Q2012 4Q2013 4Q2014 4Q2015 4Q2016 4Q2017 4Q2018 4Q20
Slide 7: 4Q Segment Revenue
Financial Review 4Q Segment Revenue 25.00 12.4 7.4 10.5 20.00 11.2 20.6 19.8 5.6 17.2 15.00 14.5 13.7 13.3 12.7 10.00 11.0 11.4 9.6 5.00 0.00 4Q2010 4Q2011 4Q2012 4Q2013 4Q2014 4Q2015 4Q2016 4Q2017 4Q2018 4Q2019 project maintenance 7
Slide 8: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Unaudited as at Audited as at S$'000 31 December 31 December 2019 2018 Current Assets (1) 97,277 92,042 Non-current Assets 64,560 59,818 Current Liabilities (2) 63,044 58,045 Non-current Liabilities 12,895 12,822 Total Equity 85,898 80,992 Cash and Cash Equi
Slide 9: Borrowings, Net Debt and Net Gearing Ratio
Financial Review As at end of S$’000 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Total 26,834 21,539 25,320 32,155 28,085 46,612 48,807 44,069 Borrowings Cash and Cash 23,965 14,852 32,799 35,566 32,325 40,291 39,232 43,200 Equivalents Net Debt/(Cash) 2,869 6,687 (7,479) (3,411) (4,240)
Slide 10: Order Book Summary
Financial Review Order Book Summary (S$’m) 120 48.3 100 48 42.9 80 60 40 50.4 44.7 49.1 20 39.7 30 30.9 39.2 19.4 21.6 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 - Project - Maintenance Note: The order book from FY2011 to FY2016 does not include maintenance contracts as they do
Slide 11: Recent Contract Wins
Financial Review Recent Contract Wins Mar 13, 2020 - Total value: S$30.4m Precision Engineering and System Integration: capital contracts from new and repeat customers for machining and mechanical assembly and overhaul of valves remote control and tank gauging systems. Scaffolding, Insulation, P
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: 10 years ending year 2030) • 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; c
Slide 13: Business Outlook: General Business and Covid-19 Outlook
Business Outlook General Business Covid-19 Outlook Responses • Singapore DORSCON Orange since 7 February 2020, Friday • Extended closure of our China operations and started 14 February 2020 • Extensive precautionary measures that we and our clients are taking in managing Covid-19 - Certain clients h
Slide 14: Revenue Contribution by Businesses
Diversified Model – Improved Earnings Quality FY2017 FY2018 FY2019 FY2016 1.4, 2% 3.8, 4% 5.7, 11.9, 13% 12.3, 13% 12.1, 13% 7% 12.5, 15% 12.5, 13.9, 15% 21.8, 15% 15.0, 18% 27% 15.6, 17% 19, 21% 19.2, 21% 16.0, 19% 30.3, 19.8, 22% 17.4, 13.3, 15% 37% 21% 31.1, 34% 23.1, 25% 22.0, 26% System Integra
Slide 15: Revenue Contribution by Industry
Diversified Model – Improved Earnings Quality FY2016 FY2017 FY2018 FY2019 1% 6% 6% 3% 3% 20% 13% 4% 3% 18% 16% 20% 4% 4% 4% 36% 3% 5% 4% 4% 7% 3% 5% 5% 7% 3% 4% 7% 41% 4% 42% 38% 53% 4% Onshore/Downstream Marine/Upstream Revenue Contribution by Industry Electronics Manufacturing System Onshore/Infra
Slide 16: Investment Merits
Investment Merits Established Market Player Strong track record, performing above Healthy Order Book industry average Order book of approximately S$92 million on hand, including maintenance contracts. Established Management with Proven Track Record Dividend Payout - Half-yearly dividend payout from
Slide 17: Dividend Payout
Dividend Payout Final / Interim / Amount per share Payment date Financial Year Payout ratio Special (cents) To be determined Final 0.419 2019 Sep 5, 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 Fin
Slide 18: Nordic's Share Buyback
Nordic’s Share Buyback – renewed on 26 April 2019 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 2019 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% 10 March 2020 : Director / Executive Officer No. of s
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