the solution to tomorrow’s ground engineering needs · the solution to tomorrow’s ground...
TRANSCRIPT
“Leading Ground Engineering Specialist”
Invest ASEAN 2013
12 January 2013
The Solution to Tomorrow’s Ground Engineering Needs
Forward Looking Statement
This presentation contains forward looking statements which can be identified by thecontext of the statement and generally arising when the Company is discussing its beliefs,estimates or expectations. Such statements may include comments on industry, businessor market trends, projections, forecasts, and plans and objectives of management forfuture operations and operating and financial performance, as well as any relatedassumptions.
Readers of this presentation should understand that these statements are not historicalfacts or guarantees for future performance but instead represent only the Company’sbelief at the time of the statements were made regarding future events, which are subjectto significant risks, uncertainties and other factors, many of which are outside theCompany’s control. Actual results and outcomes may differ materially from what isexpressed or implied in such forward looking statements.
The Company cautions readers not to place undue reliance on any forward lookingstatements included in this presentation, which speaks only as of the date made; andshould any of the events anticipated by the forward looking statements transpire or occur,the Company makes no assurances on what benefits, if any, the Company will derivetherefrom.
Corporate Profile
Our Projects
Strategies
Financials
Investment Merits
Outlook
CorporateProfile
Company Background
• Leading Specialist Ground Engineering Solutions Provider
• L6 financial grading from the Building and Construction Authority of Singapore (BCA), which enables it to tender for public sector piling contracts of unlimited value
• Established in 1990; pioneer in eco-friendly piling techniques
• Completed more than 430 projects in the public and private sectors in Singapore worth over S$900 million
• Listed on Main Board of SGX-ST on 27 Jan 2010;
market capitalisation: S$94.1 million (08 Jan 2013)
• Staff strength of more than 600
• Have expanded scope of business beyond Ground Engineering to Property Business and Plant Engineering
Group Structure
Key Executives
• Mr Ong Tiong Siew, CEO & Executive Director
• Co-founder of Ryobi Kiso
• More than 30 years of experience in civil engineering and foundation
business
• Merit government scholar; involved in feasibility studies, master
planning and implementation of national infrastructure projects
• Mr Ong Teng Choon, Executive Director
• Co-founder of Ryobi Kiso
• Over 27 years of experience in civil engineering and foundation
business
• Senior member of the Institute of Engineers, Singapore
Sectors Served
Commercial
Residential
Institutional
Industrial
Infrastructure
Environmental Protection
All construction require foundation
works
Industry Value Chain
Ground Engineering Contractors
General Building Contractors
Civil Engineering Contractors
De
gre
e o
f co
mp
lexit
y
KSH
Lian Beng
& Others
Hock Lian Seng
Lum Chang
& Others
CSC
PSL
& Others
Nu
mb
er
of
con
tra
cto
rs
Business Segments
Ground Engineering ServicesBored Piling, Eco-friendly Piling & Geoservices
Property BusinessRyobi Tech Hub, Vietnam
Plant Engineering ServicesOil & Gas, Chemical and Waste Management Sectors
Ground Engineering Services
Ryobi Kiso
(Ground Engineering Services)
Bored Piling Eco-Friendly Piling Geoservices
11 of 32
Ground Engineering Services
Bored Piling� One of the common and modern-day techniques for building a solid pile
foundation to carry either
� Heavy vertical load from structures (eg. Buildings & bridges) or
� Horizontal load in earth retaining structures for deep excavation (eg.
Mass Transit System tunnels & building basements)
� Generates less noise and vibration and more efficient compared with
the traditional driven piling method where the pile is driven into the
ground by means of a pile driver
� Involves boring and the simultaneous removal of soil to form a hole through
the use of an excavating tool such as
� Mechanical rotary rig mounted on crawler crane
� Hydraulic drilling rig (which is more advance and increase our rate of
production and efficiency)
� Other ancillary equipment such as the “down-the-hole” hammer
which is able to bore into rock
� Capable of reaching depth of 80m and boring holes of diameters ranging
500mm to 2400mm
Video: Bored Piling
Ground Engineering Services
Eco-Friendly Piling
� One of the first companies in Singapore to introduce the eco-friendly piling technology� Reputed for our strong expertise in eco-friendly and low-pollution piling works
� Similar to Bored Piling, but involves piling techniques
� Where there is a need to achieve lower noise and vibration levels� Where soil condition do not favour conventional bored piles and/or� Where soil/ground improvement works are required
Ground Engineering Services
Geoservices
(1) Environmental Protection Engineering– Trench Cutting and Re-mixing Deep Wall (TRD) and Pre-cast Underground Wall
(PUW)– Prevention of contamination beyond the polluted areas by creating a continuous
soil-mixed wall or precast wall
(2) Geotechnical Engineering Services & Sale of Geoproducts
Video: TRD
Video: PUW
Pre-cast Underground Wall (PUW)
Completed PUW
Property Development
First Property Development Project:
Ryobi Tech Hub
• Located within Ascendas Protrade Singapore Tech Park
• Located within 1,350 hectares integrated township of An Tay Industry and ServiceComplex
• 40 Km away from both Ho Chi Minh City and Tan Son Nhat International Airport
• Phase 1: land area of 35,676 sq m (3.56 hectares) and permissible GFA of 24,322 sq m
• Lease Term: Up to 28 October 2057
Plant Engineering Services
• Fabrications, Structural and mechanical engineering works for plantsoperators
• Serve the Oil & Gas, Chemical and Waste Management Sectors
Our Projects
Singapore Flyer
Bored Piling Works
Punggol Waterway
Eco-Friendly Piling Solutions
Multi-Award Winning Project by Housing Development Board of Singapore
• Gold Award for the 2012 InternationalAward for Liveable Communities,endorsed by United NationsEnvironmental Programme (UNEP)
• Global Superior Achievement Award byInternational Water Association (IWA)
Marina Coastal Expressway
Infrastructure Works
Notable Projects
The Trillium
LaSalle-SIA City College of The Arts
Institutional
Residential
Public Housing at Punggol West
Institute of Technical Education College East
Notable Projects
Enterprise One Motors Showroom @ Ubi Road
Sentosa Link Bridge Aircraft Hangar 6 for Airbus A380 At Changi Airport
Infrastructure
Industrial
SSG Tower
Prominent Tower in Ho Chi Minh City
The ONE, Ho Chi Minh
Iconic Building by one of Vietnam’s leading developers
Australian Projects
Ventured into the Australian construction industry by acquiring 2 piling companies in Australia in July 2012
Esperance Port Access Corridor Perth Metrorail
Strategies
Regionalisation
• Expand the Group’s reach to other countries in the region
• Started in Vietnam with the incorporation of Raffles Piling VietnamCompany Ltd in 2009
• Ventured into the Australia construction industry by acquiring 2Australian companies in July 2012
Expand Scope of Business
• Diversify into other areas which are synergistic to our current groundengineering business
• Diversify into Property Business and Plant Engineering Services
• Business Segments’ Strategies:
� Ground Engineering Business still remain as core
� Further expansion of the Property Business
� Expand Plant Engineering Services in Singapore where our targeted customers'industries (Chemical, Oil & Gas) are traditionally strong
� Regionalisation of these new businesses ultimately
Financials
FY2012
FY2011(S$ ‘000)
FY2012(S$ ‘000)
Revenue 123,288 153,319
Cost of Sales
(95,890) (134,203)
Gross Profit 27,398 19,116
Pretax Profit 10,607 3,374
Net Profit 8,872 4,248
�Revenue went up 24.4% yoy as more higher value projects were undertaken
�However, intense competition & risings costs eroded margins
– Gross Profit Margin: decrease from 22.2% in FY2011 to 12.5% in FY2012
– Net Profit Margin: decrease from 7.2% in FY2011 to 2.8% in FY2012
�As a result, FY2012 net profit decreased by 52.1% to S$4.2 million
Segmental Revenue
96.1
128.6
73.793.2
124.2
29.0
31.7
47.130.1
29.1
0
20
40
60
80
100
120
140
160
180
200
FY2008 FY2009 FY2010 FY2011 FY2012
Bored Piling Eco-Friendly & Geoservices
S$’ Mil
125.1
160.3
120.8 123.3
153.3
Balance Sheet
As at 30 Jun 2011(S$ ‘000)
As at 30 Jun 2012(S$ ‘000)
Cash 41,337 33,026
Current Assets (excluding cash)
66,179 82,502
Non-current Assets 91,546 93,783
Total Assets 199,062 209,311
Total Liabilities (excluding Borrowings)
36,929 44,521
Total Borrowings 42,939 46,927
Shareholders’ Equity 116,194 114,051
Net Working Capital 59,549 48,921
Net Order Book
75.1 78.1 79.0 76.1
102.4 104.4
0
20
40
60
80
100
120
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
S$’ Mil
Investment Merits
Investment Merits
One of the Largest Ground Engineering Solutions Providers in Singapore
• Over 20 years of track record in Singapore;
• Handled more than 430 public and private sector projects comprising residential, commercial,
institutional, industrial, infrastructure and environmental protection projects;
• Capable of handling different types of piling requirements;
• Reputed for ability to complete and meet tight completion timelines.
Established relationships with major developers and main contractors
• Close relationships have facilitated sourcing opportunities and contributed to ability to secure
projects
Investment Merits
Able to tender for contracts of all sizes
• L6 grading enables Group to tender for public sector piling contracts of unlimited value
• Highest grading by Building and Construction Authority of Singapore (BCA)
• One of 18 piling contractors in Singapore
Competitive In Our Pricing
• Long standing relationships with suppliers and size of operations allows Group to purchase in bulk
and negotiate for more competitive pricing
• Able to negotiate for more competitive pricing for the supply of concrete, steel bars and spare parts
Investment Merits
Provision of High Quality Services
� ISO9001:2008, ISO14001:2004 and OHSAS 18001:2007 certified
� A team of experienced operators, technicians, supervisory and management staff
� Conscientious in upgrading assembly of piling machinery as well as purchasing new
machines and equipment to keep up with the latest technology
Experienced and Dedicated Management Team
� Executive Directors, each have more than 25 years of experience in the Bored Piling
and Eco-friendly Piling and Geoservices business, with extensive knowledge in the
industry
� Cultivated a wide network of contacts and established a wide customer base
� All our senior managers have more than 20 years of experience each in our business
Outlook
Outlook - Singapore
Singapore
• As of 30 September 2012, the Group’s net order book stood at S$90.3million
• The Building and Construction Authority of Singapore (“BCA”) has projectedSingapore’s construction demand for 2013 to be S$19 billion to S$27 billion
• The Singapore government will be building more public housing and addingmore rail lines to the transport network, to the tune of billions of dollars overthe next five years
• The Group will continue its effort to seek opportunities and grow its businessin Singapore, Vietnam and Australia
Outlook – Vietnam & Australia
Vietnam
• Vietnam’s economic growth slowed down in 2012 but certain sectors such asinfrastructure and public works construction and agriculture are poised for recovery in2013
• According to Business Monitor International, Vietnam’s construction real growth isprojected to reach 7.1% in 2013 as monetary conditions remain conducive forconstruction.
• Government continue to step up efforts to reform policies and its investmentenvironment to attract more FDIs in the long term, which will also drive theconstruction sector
Australia
• Growth in the resources sector is expected to continue to spill over into other sectors,including the infrastructure and public works construction sectors
THANK YOU