Nordic Group Limited · SGX:MR7
Nordic — Q1 2019 Earnings Presentation
21 slides from Nordic's earnings presentation, May 10, 2019
Slide 1: Nordic Group Limited 1Q2019 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited 1Q2019 Results Briefing 10 May 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: Financial Highlights
Financial Highlights Revenue Net profit $19.5m $2.06m 1Q18: $22.7m, 14%↓ 1Q18: $3.4m, 40%↓ EBITDA Order book $3.3m $95.5m 1Q18: $4.7, 30%↓ as at 31 March 2019 EPS NTA per share 0.5 cents 21.2 cents 1Q2018: 0.9 cents, 1Q2018: 20.6 cents, 44%↓ 2.9%↑ 4
Slide 5: Financial Review
Financial Review Change S$'000 Unaudited 1Q2019 Unaudited 1Q2018 (%) Revenue 19,506 22,708 (14) Gross Profit 5,337 6,845 (12) Gross Profit Margin 27.4% 30.1% (2.7) ppts Net Profit after Tax 2,060 3,441 (22) Net Profit Margin 10.6% 15.2% (4.6) ppts EBITDA 3,272 4,671 (30) EBITDA Margin 16.8% 20.6% (3
Slide 6: Financial Review: 1Q Revenue and Gross Profit Margins
Financial Review ($m) 1Q Revenue and Gross Profit Margins 25.0 40% 38% 35% 20.0 32% 29% 28% 32% 31% 30% 30% 27% 25% 15.0 23% 22% 20% 22.7 10.0 19.8 19.9 19.5 15% 15.1 16.6 14.4 12.2 10% 5.0 10.1 9.6 5% 0.0 0% 1Q2010 1Q2011 1Q2012 1Q2013 1Q2014 1Q2015 1Q2016 1Q2017 1Q2018 1Q2019 1Q2010 and 2011 was o
Slide 7: Financial Review: Project and Maintenance Services Revenue
Financial Review ($’m) 25.0 Project and Maintenance Services Revenue 20.0 1.4 9.3 4.7 5.5 15.0 3.5 9.8 10.0 15.1 13.1 13.1 13.4 5.0 9.7 - 1Q2015 1Q2016 1Q2017 1Q2018 1Q2019 Project Maintenance Others 7
Slide 8: Financial Review: 1Q Net Profit and Net Profit Margins
Financial Review ($m) 1Q Net Profit and Net Profit Margins 4 25% 3.5 21% 20% 3 2.5 15% 15% 14% 2 12% 12% 3.4 11% 10% 1.5 2.8 7% 9% 2.3 1 2.083 6% 2.1 3% 1.5 5% 0.5 1.1 0.9 0.9 0.5 0 0% 1Q2010 1Q2011 1Q2012 1Q2013 1Q2014 1Q2015 1Q2016 1Q2017 1Q2018 1Q2019 1Q2010 and 2011 was only the NPM of system in
Slide 9: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Audited as at Unaudited as at S$'000 31 December 31 March 2019 2018 Current Assets (1) 89,986 92,042 Non-current Assets 63,697 59,818 Current Liabilities (2) 54,056 58,045 Non-current Liabilities 16,489 12,823 Total Equity 83,138 80,992 Cash and Cash Equival
Slide 10: Financial Review: Borrowings and Net Gearing
Financial Review As at end of S$’000 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1Q2019 Total 26,834 21,539 25,320 32,155 28,085 46,612 48,807 46,944 Borrowings Cash and Cash 23,965 14,852 32,799 35,566 32,325 40,291 39,232 39,986 Equivalents Net Debt/(Cash) 2,869 6,687 (7,479) (3,411) (4,240)
Slide 11: Order Book Summary
Financial Review Order Book Summary (S$’m) 60 50.4 49.7 50 48.3 48 44.7 44.2 39.7 39.2 40 30 30.9 30 21.6 19.4 20 10 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1Q2019 - Project - Maintenance Note: The order book from FY2011 to FY2016 does not include maintenance contracts as they do n
Slide 12: 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 13: 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: 12.5 years) • 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; current market v
Slide 14: Business Outlook
Business Outlook General Business Outlook • Nordic Group serves the marine, oil and gas industries whose operating environment and business conditions remain challenging. • Sustainability of oil price recovery • Fluctuations in the exchange rate of the US dollar against the Singapore dollar and trad
Slide 15: Revenue Contribution by Businesses
Diversified Model – Improved Earnings Quality FY2017 FY2018 1Q2019 FY2016 1.4, 2% 3.8, 4% 12.1, 13% 2.1, 10% 11.9, 13% 12.3, 13% 12.5, 13.9, 15% 4.1, 21% 21.8, 15% 27% 15.6, 17% 19, 21% 4.5, 23% 19.2, 21% 19.8, 22% 30.3, 3.2, 17% 17.4, 37% 21% 31.1, 34% 23.1, 25% 5.6, 29% System Integration / MRO &
Slide 16: Revenue Contribution by Industry
Diversified Model – Improved Earnings Quality FY2016 FY2018 1Q2019 FY2017 6% 1% 3% 6% 13% 4% 3% 18% 11% 20% 15% 4% 3% 4% 5% 36% 4% 5% 3% 4% 5% 7% 13% 5% 3% 5% 7% 41% 42% 5% 42% 4% 53% Onshore/Downstream Marine/Upstream Revenue Contribution by Industry Electronics Manufacturing System Onshore/Infrast
Slide 17: Investment Merits
Investment Merits Established Market Player Healthy Order Book Strong track record, performing above Order book of approximately S$95.5 industry average million on hand, including maintenance contracts. Contract winning momentum of S$18.6 million secured up to 9 May 19. Established Management with P
Slide 18: Dividend Payout
Dividend Payout Final / Interim / Amount per share Payment date Financial Year Payout ratio Special (cents) 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 Final 0.731 2016 Sep 2, 2016 Interim 0.5372 May, 13 2016 Final
Slide 19: Nordic's Share Buyback
Nordic’s Share Buyback – renewed on 26 April 2018 AGM CUMULATIVE % OF TOTAL NO MONTH OF ACQUISITION QUANTITY CUMULATIVE VOLUME OF 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 May 2
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% 5 May 2019 : Director / Executive Officer No. of shar
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