Yongnam Holdings Limited1HFY2010 Results Presentation

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Contents

• Our Business

• Corporate Updates

• 1HFY2010 Financial Performance

• Prospects and Market Outlook

• Growth Strategies and Plans

Our Business

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Structural Steelworks

• One of the largest steelfabrication facilities inSoutheast Asia

• Nearest competitor is onefifth the size of Yongnam

• On time delivery and withquality

• S1 category accreditation from Singapore Structural Steel Society

We are…A well-established structural steel contractor and

specialist civil engineering solutions provider

Specialist Civil Engineering

• Modular Strutting Systemmeets increasingly stringentdesign and projectrequirements

• Approximately 140,000 tons ofstrutting assets and pipe piles

• Strong track record and high replacement cost of strutsare major barriers to entry

4

Our Business

• Over 30 years of experience in steel fabrication

• Long established relationships with major customers, who are reputable contractors:

Takenaka Corporation

Taisei Corporation

Obayashi Corporation

Penta Ocean

Shimizu Corporation

Dragages Singapore

Sembawang Engineers &Constructors Pte Ltd

Samsung CorporationSsangyong Engineering &Construction Co LtdHyundai Engineering & Construction Ltd

Daelim Industrial Co. LtdWoh Hup Pte LtdLarsen & Toubro Ltd

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Regional Offices

Singapore

- Yongnam Engineering &

Construction (Pte) Ltd

- YNE Project Engineering

Pte Ltd

Malaysia

- Yongnam Engineering Sdn

Bhd

- Jiwa Harmoni Offshore Sdn

Bhd

Hong Kong

- Yongnam Engineering (HK) Ltd

Thailand

- Yongnam Engineering &Construction (Thailand) Ltd

Middle East

- Yongnam Engineering & Construction (Pte) Ltd, Dubai Branch

India

- Project Office (Delhi)

- Geodesic-Yongnam JV (Mumbai)

Hong Kong

Malaysia

Singapore

ThailandMiddle East

INDIA

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Regional Projects

Projects undertaken across the region:

Singapore

Malaysia

Middle East

China

Norway

Brunei

Philippines

Thailand

Japan

Korea

Hong Kong

Pakistan

India

Hong Kong

BruneiMalaysia

Singapore

Thailand Philippines

Japan

India

Korea

PakistanMiddle East

China

Norway

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Structural Steelworks – Track Record

Marina Bay Sands Integrated Resort, Singapore

ION Orchard, Singapore

Dubai Metro Rail, Dubai

New Delhi International Airport, India

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Structural Steelworks – Facilities

Singapore:Total Land Area: Approximately 76,000 m2

Workshop Covered Area: 20,250 m2

Capacity (Normal Steel Structure): 3,000 Tons per month

Malaysia (Nusajaya, Johor):Total Land Area: Approximately 109,103 m2

Workshop Covered Area: 28,900 m2

Capacity (Normal Steel Structure): 3,500 Tons per month

Total Staff Strength: Approximately 1,600

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Specialist Civil Engineering – Track Record

Farrer Station, Circle Line, Singapore

Marina Bay Sands Integrated Resort, Singapore

• Marina Coastal Expressway

Specialist Civil Engineering – Track Record

• Marina Coastal Expressway

Specialist Civil Engineering – Track Record

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Completed/Ongoing Works

PC

CD

ST

SS

SS

PC

PCPCPCPCPCPC

PC

CD

CD

CD

CD

SS SS

SS

STST

ST

ST

STSTST

ST

ST

ST

ST

PC Pre cast Projects

ST Civil Eng Works

ST

ST

STST

ST

ST

ST

ST

ST

ST

ST

ST

ST

ST

ST

ST

SS Structural Steelwork

CD Civil Defense Doors

Corporate UpdatesCorporate Updates

• Total of 9 contracts worth S$342 million• First 8 contracts completed• Remaining 1 contract: Crystal Pavilions

expected to complete by end October 2010

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Corporate Updates – MBS IR

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View Corridor Bridges& Large CanopiesMain Con – YongnamSteel Wt – 1,117 tons

Sky ParkMain Con – JFE Yongnam JV Steel Wt - 8,068 tons

Cooling TowersMain Con - YongnamSteel Wt - 582 tons

Lion Garden BridgeMain Con - YongnamSteel Wt - 824 tons

North Podium Steel Decking & StruttingMain Con – Sembcorp PunjLlyodsSteel Wt - 14,026 tons

Arts Science MuseumMain Con - Penta OceanSteel Wt - 5,029 tons

Projects at MBS IR

Crystal PavilionsMain Con – Yongnam Steel Wt - 1,261 tons

MBS IR – Arts Science Museum

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MBS IR – Skypark

Sky Park

343m

64m

North CantileverNorth Cantilever

Bridge 2Bridge 2

Tower 3 Box GirderTower 3 Box Girder

Bridge 1Bridge 1

Heavy Lifting ComponentHeavy Lifting Component

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MBS IR – Skypark

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Corporate Updates

Vista Xchange

• Contract worth S$88.5 million• Construction of the Integrated Civic,

Cultural, Retail and Entertainment Hub at Vista Xchange, located at one-north

• Phase I Construction commenced end of 2008 and completed

• Phase II Construction commenced in March 2010 and scheduled for completion by July 2011

• 21% completed Artist’s Impression

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Corporate Updates

Mumbai International Airport• Contract worth S$71.1 million• Second contract win following Delhi International Airport• Construction of roof structure and composite steel columns for

new integrated terminal building• Project expected to complete by February 2011

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MBS IR – Gardens by the Bay

• Design, supply and construct structural steelworks for:

• Cool Dry Conservatory Building• Cool Moist Conservatory Building

• Contract value approx S$54.1 million

• 37.5% completed

• Expected completion January 2011

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Corporate Updates - MCE

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Marina Coastal Expressway• 6 Contracts worth total of S$364.3 million

• C485 contract worth S$210.0 million – single largest contract won by Yongnam todate

• Temporary steel pipe pile cofferdam, steel waling and strutting works• Project scheduled for completion by June 2013 – 40.5% completed

• C487 contract valued at approx S$52.3 million• Lease supply, fabrication, installation and removal of temporary waler

and struts

• Project scheduled for completion by May 2012 – 6.9% completed

• C483 contract valued at approx S$23.2 million• The installation and the eventual extraction of the temporary steel 

interlocking pipe pile earth retaining wall for the 950‐metre vehicular tunnel structure

• Project scheduled for completion by May 2012 – 51.3% completed

• C486 contract valued at approx S$21.5 million• Supply, installation and removal of steel walers and struts• Project scheduled for completion by April 2012 – 12.3% completed

Corporate Updates - MCE

Artist’s Impression

C485

C485

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Marina Coastal Expressway

• C482 contract valued at approx S$21.4 million • Installation and removal of steel pipe pile• Project scheduled for completion by May 2012 – 41.2% completed

• C482 contract valued at approx S$35.9 million• Lease supply, fabrication, assembly, maintenance and removal of walers

and struts• Project scheduled for completion by October 2012

Corporate Updates - MCE

1HFY2010 Financial Performance1HFY2010 Financial Performance

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Financial Highlights

2QFY2010 highlights :

• Another quarter of commendable results

• Group revenue decreased 2.7% to S$84.1 million

• Gross profit margin increased 20.3% to 29.0% in 2QFY2010

• Net profit before tax increased 36.0% to S$16.9 million

• Structural Steelworks revenue decreased to S$50.1 million

• Specialist Civil Engineering revenue increased to S$34.0 million

• Shareholders’ equity increased 12.0% to S$210.0 million

• Annualized Return on Equity 31.0% for 1HFY2010

• Strong order book – S$460 million

As at June 30, 2010

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Financial Highlights

+27.826.420.7+27.213.310.5Profit after tax (S$’m)

+26.029.123.1+20.329.024.1Gross Profit Margin (%)

-31.026.7-32.026.5Annualized Return on Equity (%)

2QFY2009 2QFY2010 Change

(%)

1H2009 1H2010 Change (%)

Revenue (S$’m) 86.4 84.1 -2.7 183.2 167.2 -8.8

Gross Profit (S$’m) 20.8 24.4 +17.1 42.4 48.7 +14.8

Profit before tax (S$’m) 12.4 16.9 +36.0 25.1 32.5 +29.7

EPS (Basic)

(Singapore cents) (1)0.86 1.07 +24.4 1.69 2.13 +26.0

NAV Per Share (Singapore cents) (2) - - - 15.22 16.90 +11.0

Period ended June 30

(1) EPS per share was computed based on the weighted average number of shares of 1,242,054,835 for 2QFY2010 (2QFY2009 : 1,223,722,368) and 1,237,837,835 for 1HFY2010 (1HFY2009: 1,221,480,176)

(2) NAV per share as at December 31, 2009 and June 30, 2010 respectively

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Balance Sheet Highlights

Dec 31

2009

Jun 30

2010

Change (%)

Net Work-in-progress (S$’m)

93.0 65.8 -29.3

Debtors (S$’m) 47.8 50.2 +5.0

Cash (S$’m) 18.7 16.2 -13.3

Borrowings (S$’m) 159.1 145.1 -8.8

Gearing (times) 0.75 0.61 -17.9

Shareholders’ Funds (S$’m)

187.6 210.0 +11.9

Period ended June 30

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Revenue

S$’m

2QFY2010 Revenue 2.7%:

• Structural Steelworks decreased to S$50.1 million mainly due to:

• Completed projects like New Delhi Airport, Dubai Metro and the Marina Bay Sands™ Integrated Resort• Partially offset by increased contribution from Gardens by the Bay and Vista Xchange

• Specialist Civil Engineering increased to S$34.0 million mainly due to:

•Marina Coastal Expressway and MRT projects

Period ended June 30

0

50

100

150

200

2QFY09 2QFY10 1HFY09 1HFY10

86.4 84.1

183.2167.2

-2.7%

-8.8%

80.9%

19.1%

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Revenue by Business Activity

2QFY2009 2QFY2010

59.6%40.4%

Specialist Civil Engineering

S$34.0m

Structural SteelworksS$50.1m

Period ended June 30

Specialist Civil Engineering

S$16.5m

Structural SteelworksS$69.9m

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Gross Profit & Margins

S$’m

2QFY2010 Gross Profit 17.1%

Due mainly to:

• Improved margins : 29.0% in 2QFY2010 compared to 24.1% in 2QFY2009

• Increasing revenue contribution from Specialist Civil Engineering segment which contributed better margins

Period ended June 30

0

10

20

30

40

50

2QFY09 2QFY10 1HFY09 1HFY10

20.824.4

42.448.7

+17.1%

+14.8%

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Profit after Tax

Consequently, profit after tax 27.2%

Period ended June 30

0

5

10

15

20

25

30

2QFY09 2QFY10 1HFY09 1HFY10

10.513.3

20.7

26.4

27.2%

27.8%

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Order Book

• Strong order book of S$460 million

- 40.1% expected to complete by FY2010

- Structural Steelworks – 40%

- Specialist Civil Engineering – 60%

As at June 30, 2010

Prospects and Market OutlookProspects and Market Outlook

• Total construction demand for 2010 to be between $21 – 27 billion(1)

▫ Another $10 – 16 billion of contracts likely to be awarded in 2H 2010 (BCA mid-year review)

▫ S$21 – 27 billion worth of construction contracts to be awarded this year, and between S$18 – 25 billion for 2011 and 2012

▫ Upcoming public sector works include : MRT Downtown Line Stage 3 and various road works

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Market Prospects : Singapore

Government will continue to invest in infrastructure works :

• Construction sector grew 11.5% y-o-y, compared to 9.7% in 1Q2010• Supported by an increase in public sector construction activities

Construction sector grows 11.5% in 2Q2010(2):

(1) Business Times, July 30, 2010(2) Ministry of Trade and Industry, August 10, 2010

• HK Budget 2010-11 : government committed to investing in infrastructure

• Estimated capital works expenditure for 2010-2011 will increase to HK$49.6 billion (from HK$45.1 billion in 2009-2010)

• Capital works expenditure for each of the next few years will be at an all time high of over HK$50 billion

• MTR projects including : Shenzhen Metro Line 4 Phase 2, West Island Line, South Island Line (East), Shatin to Central Link and Kwun Tung Line Extension

• By end 2010, HK$50b of contracts expected for the high-speed rail link to Guangzhou

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Market Prospects : Regional

Hong Kong: India:

• Estimated investment of Rs 40,000 crore (US$9 billion) for airport development over the next 5 years

• Major investments planned in new airports and upgrading of existing airports

• Strong growth in passenger and cargotraffic due to favorable demographicsand rapid economic growth

• Government taking steps to increase participation by private enterprise in the aviation industry

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Potential Projects

• Structural Steelworks▫ Singapore Sports Hub▫ National Arts Gallery▫ India Tower▫ Haramain High Speed Rail (Saudi

Arabia)▫ Abu Dhabi Stadium

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Potential Projects

• Specialist Civil Engineering• Downtown Line 2• Downtown Line 3• HK MTR

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Potential Projects

• Structural Steelworks

Nil

Nil

Nil

Nil

Nil

Non-Government

$ Mil

434.0

125.0

Nil

150.0

159.0

Total

125.02011

LocationExpected

CommencementGovernment

$ Mil

Singapore2010 159.0

2011 150.0

Overseas2010 Nil

Total 434.0

205.0

60.0

Nil

55.8

89.2

Non-Government

$ MilLocation

Expected Commencement

Government

$ Mil

Total

Singapore2010 72.0 161.2

2011 125.0 180.8

Overseas2010 198.0 198.0

2011 317.0 377.0

Total 712.0 917.0

• Projects announced by Government (not included above):

• Contracts for infrastructural developments such as:MRT Downtown Line

Infrastructure – Oman, Saudi, HK

Singapore Sports Hub

Commercial – Saudi, Abu Dhabi & India

MRT Thomson Line

MRT Eastern Line

North-South Expressway

• Specialist Civil Engineering

Growth Strategies and PlansGrowth Strategies and Plans

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Growth Strategies and Plans

Remain focused on the two core businesses – Structural Steelworks and Specialist Civil Engineering

Leverage on established brand name and strong foothold in the Singapore market

Continue to explore projects in Hong Kong, Abu Dhabi, Saudi Arabia, Oman and India

Thank You