Nordic Group Limited · SGX:MR7
Nordic — 3Q2019 Earnings Presentation
25 slides from Nordic's earnings presentation, Dec 2, 2019
Slide 1: Nordic Group Limited 3Q2019 Results Briefing
Building Momentum, Capturing Opportunities Nordic Group Limited 3Q2019 Results Briefing 2 December 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 for 3Q2019 and 9M2019
Financial Highlights for 3Q2019 and 9M2019 3Q19 Revenue ↓2% 9M19 Revenue ↓12% 3Q19 EPS ↓13% $20.9m $61.4m 0.7 cents 3Q18: $21.4m 9M18: $70.2m 3Q2018: 0.8 cents 3Q19 Net profit ↓12% 9M19 Net profit ↓35% 9M19 EPS ↓36% $2.9m $7.2m 1.8 cents 3Q18: $3.3m 9M18: $11.1m 9M2018: 2.8 cents 3Q19 EBITDA ↓13% 9M
Slide 5: Financial Review
Financial Review Unaudited Unaudited Change Unaudited Unaudited Change S$'000 3Q2019 3Q2018 (%) 9M2019 9M2018 (%) Revenue 20,892 21,385 (2) 61,436 70,169 (12) Gross Profit 4,608 5,688 (19) 15,289 19,693 (22) Gross Profit Margin (1) 22% 27% (5) ppts 25% 28% (3)ppts Net Profit after Tax 2,927 3,317 (1
Slide 6: 3Q Revenue and Gross Profit and Net Profit Margins
Financial Review 3Q Revenue and Gross Profit and Net Profit Margins 30.0 40% 37% 35% 25.0 34% 30% 31% 20.0 25% 27% 26% 25% 15.0 23% 22% 20% 21% 26.8 20% 16% 16% 16% 15% 21.7 21.4 21.4 20.9 10.0 19.6 18.7 15% 14% 13% 15.2 10% 10% 14.2 5.0 11.1 7% 6% 5% 3% - 0% 3Q2010 3Q2011 3Q2012 3Q2013 3Q2014 3Q201
Slide 7: 3Q Segment Revenue
Financial Review 3Q Segment Revenue 25.0 20.0 19.6 18.7 17.9 15.0 16.4 15.2 15.7 14.2 11.8 10.0 11.1 11.0 10.4 9.9 9.6 5.0 5.7 3.8 - 3Q2010 3Q2011 3Q2012 3Q2013 3Q2014 3Q2015 3Q2016 3Q2017 3Q2018 3Q2019 project maintenance 7
Slide 8: Balance Sheet Highlights
Financial Review Balance Sheet Highlights Unaudited as at Audited as at S$'000 30 September 31 December 2019 2018 Current Assets (1) 85,935 92,042 Non-current Assets 64,319 59,818 Current Liabilities (2) 52,238 58,045 Non-current Liabilities 13,266 12,823 Total Equity 84,750 80,992 Cash and Cash Equ
Slide 9: Borrowings, Net Debt and Net Gearing Ratio
Financial Review As at end of 30 Sep S$’000 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 2019 Total 26,834 21,539 25,320 32,155 28,085 46,612 48,807 45,158 Borrowings Cash and Cash 23,965 14,852 32,799 35,566 32,325 40,291 39,232 39,663 Equivalents Net Debt/(Cash) 2,869 6,687 (7,479) (3,411) (4,
Slide 10: Order Book Summary
Financial Review Order Book Summary (S$’m) 120 100 80 48.3 48 60 33.9 40 50.4 44.7 40.2 20 39.7 30 30.9 39.2 19.4 21.6 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 9M2019 - Project - Maintenance Note: The order book from FY2011 to FY2016 does not include maintenance contracts as they do
Slide 11: 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 12: Business Outlook: General 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 13: Revenue Contribution by Businesses
Diversified Model – Improved Earnings Quality FY2017 FY2018 9M2019 FY2016 1.4, 2% 3.8, 4% 12.1, 13% 11.9, 13% 12.3, 13% 9.7, 16% 12.5, 13.9, 15% 12.7, 21% 21.8, 15% 27% 15.6, 17% 19, 21% 11.8, 19% 19.2, 21% 10.0, 16% 19.8, 22% 30.3, 17.4, 37% 21% 31.1, 34% 23.1, 25% 17.3, 28% System Integration / MR
Slide 14: Revenue Contribution by Industry
Diversified Model – Improved Earnings Quality FY2016 FY2017 FY2018 3Q2019 1% 6% 6% 3% 3% 20% 13% 4% 3% 18% 18% 21% 4% 4% 4% 36% 3% 5% 4% 3% 7% 5% 6% 5% 5% 3% 4% 7% 41% 40% 42% 53% 3% Onshore/Downstream Marine/Upstream Revenue Contribution by Industry Electronics Manufacturing System Onshore/Infrastr
Slide 15: Investment Merits
Investment Merits Established Market Player Healthy Order Book Strong track record, performing above Order book of approximately S$74.1 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 16: Dividend Payout
Dividend Payout Final / Interim / Amount per share Payment date Financial Year Payout ratio Special (cents) Sep 5, 2019 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 Final 0.731 Sep 2, 2016 2016 Int
Slide 17: 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 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 18: 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 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 19: 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% 4 September 2019 : Director / Executive Officer No. o
Slide 20: Group Structure
Group Structure Nordic Flow Control Pte. Ltd. 100% Avitools (Suzhou) Co., Nordic Flow Control Multiheight Scaffolding Austin Energy (Asia) Envipure Pte. Ltd. Ltd (Suzhou) Co., Ltd Pte Ltd Pte Ltd 100% 100% 100% 100% 100% Multiheight Marine Austin Energy Offshore Envipure Sdn. Bhd. Pte Ltd Pte Ltd 10
Slide 21: Acquisition Track Record
Acquisition Track Record FY2011 FY2015 Austin FY2017 Ensure FY2019 Multiheight Energy Group Engineering Envipure Group Group - Acquired 100% for - Acquired 100% for - Acquired 100% for - Acquired 100% for around S$29m S$26m around S$17m S$14.8m - Design, erection, - Specialize in - Specialize in - S
Slide 22: Proforma Revenue and Profit Margins
Proforma Revenue and Profit Margins Revenue and Profit Margins 100 33% 35% 31% 90 28% 30% 80 26% 26% 26% 25% 25% 24% 25% 70 60 20% 20% 17% 50 16% 13% 15% 40 12% 11% 11% 11% 30 9% 10% 8% 20 4% 5% 10 50 60 66 72 81 82 92 92 61 93 0 0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Sep-19 Sep-
Slide 23: Proforma Segment
Proforma Segment Revenue Breakdown by Segment FY2016 FY2018 Proforma 9M2019 FY2017 3.8, 4% 1.4, 2% 21.5, 26% 36.7, 40% 45.6 , 44% 37.8 , 41% 53.5, 58% 50.1 , 55% 59.1 , 56% 60.5, 74% Project Maintenance Carbon allowances • Revenue from Maintenance Services is boosted by contributions from Ensure sin
Slide 24: Revenue Contribution by Businesses
Diversified Model – Improved Earnings Quality FY2017 FY2018 9M2019 Proforma 9M2019 FY2016 3.8, 4% 11.9, 13% 1.4, 2% 12.1, 9.7, 9.7, 12.3, 13.9, 10% 12.5 13% 16% 21.8 13% 15% 12.7, 21% , , 15.6, 11.8, 32.0, 34% 11.8, 13% 15% 19.2, 19, 21% 27% 17% 19.8, 10.0, 30.3 21% 19% 17.3, 18% 17.4 22% 16% , , 37
Slide 25: 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 25