“reaching new heights, driving excellence”teeinternational.listedcompany.com/newsroom/... ·...
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F Y 2 0 1 1 R e s u l t s P r e s e n t a t i o n . 1 9 J u l y 2 0 1 1
T E E I N T E R N A T I O N A L L I M I T E D
“Reaching New Heights, Driving Excellence”
E n g i n e e r i n g . L i f e s t y l e
2Contents
Our BusinessCorporate Profile
Our Business ModelStrategic Direction for Sustainable Growth
Our Business ActivitiesFinancial Highlights
Engineering Integrated Real Estate
Looking Ahead
E n g i n e e r i n g . L i f e s t y l e
Corporate Profile3
• TEE is a recognised engineering and integrated real estate & facilitiesmanagement group
• Core competency: Specialised Engineering Services for Infrastructure,Construction & Rebuilding, Redevelopment & System Integration
• Established strong track record in delivering quality, value-addedservices by providing integrated solutions to its customers
• Strong brand position - secured prominent projects
E n g i n e e r i n g . L i f e s t y l e
Our Business Model4
PEOPLE• Expertise• Experience• Capability
ENGINEERING• Enhancing specialist engineering capabilities
INTEGRATED REAL ESTATE• Building up track record
Singapore
Regionalisation
Strategic Partnerships or M&A
TEE Team
E n g i n e e r i n g . L i f e s t y l e
Sustainable Growth
Recurring Income
Integrated Real Estate
Engineering
Strategic Direction for Sustainable Growth5
Leasing ContractsEstate & Facilities ManagementWater Treatment Services
Residential Properties Development
Large Scale ProjectsRebuilding & Refitting ProjectsTelecommunications ProjectsWater-related Projects
E n g i n e e r i n g . L i f e s t y l e
Our Business ActivitiesEn
gin
ee
rin
g
• Infrastructure
• Construction & Redevelopment
• Design & Build
• System IntegrationIn
tegr
ate
d R
eal
Est
ate
• Property Development
• Estate & Facilities Management
• Property Investment
6
20 Years
Growing In Depth & Breadth
71991-1995
Electrical Engineering on a sub-contract basis
Singapore
1996-2000
BCA registeredMechanical andElectrical (M&E)Contractor
BCA registeredBuilding Contractorfocusing on Rebuildingworks
2001-2005
• M&E engineering
• Rebuilding engineering
• Extra Low Voltage or ELV
engineering
• Real Estate & Facilities
Management
• Listed on SESDAQ 2001• Secured 9 year housing
estate management in Thailand
• Secured S$33 mil low cost housing project in Thailand
Singapore. Thailand. Malaysia.
2006 - Present
• Large-scale M&E project >S$50 mil
• Rebuilding engineering
• High-end fit out engineering
• ELV engineering
• Real Estate & Facilities Management
• Property Development and Investment
• Upgraded to Mainboard in 2008• Anchored large-scale projects (MBS:
S$128 mil; Asia Square Tower 1: S$120 mil)
• Design, build, own and lease NORDAM factory in Changi North Crescent
• Ventured into residential property development in Singapore, Thailand and Vietnam (a maiden venture in 2010)
• Secured contract to build 1,500 houses in Brunei BND147.5 mil
• First foray into water-related engineering segment
• Acquired telecommunications and water-related engineering business
Singapore. Thailand. Malaysia. Vietnam. Brunei. Philippines
Singapore.
Thailand.
Malaysia.
A 10 year - dividend track record since listing on 2001, ranging from 0.4 cents to 2.25 cents
E n g i n e e r i n g . L i f e s t y l e
Key Highlights for FY2011…
• Profit for the year rose 46.5% to S$16.7 million
• Another record breaking revenue of S$253.0 million whilst profit before tax rose 38.4% to S$19.4 million
• Engineering segment recorded outstanding order book of S$235.3 million
• Integrated Real Estate segment registered contracted sales of S$23.6 million in Singapore and Thailand
• Propose Final dividend of 1.25 Singapore cents and Special dividend of 0.50 Singapore cents per ordinary share
• Together with the Interim dividend of 0.50 Singapore cents, total dividend for FY2011 is 2.25 Singapore cents per ordinary share
8
Financial Highlights
E n g i n e e r i n g . L i f e s t y l e
E n g i n e e r i n g . L i f e s t y l e
Revenue – Gaining Growth Momentum
0
50,000
100,000
150,000
200,000
250,000
300,000
FY2009 (restated) FY2010 (restated) FY2011
99,818
155,507
253,037
S$’000
10
• Growth in line with ongoing large-scale and new projects awarded
• Order book replenishment rate is healthy
• Reflects growing capabilities in Engineering
• Contribution from sales of residential properties in Singapore & Thailand
E n g i n e e r i n g . L i f e s t y l e
Profit for the year
0
4,000
8,000
12,000
16,000
20,000
FY2009 (restated) FY2010 (restated) FY2011
6,534
11,407
16,714
S$’000
11
• Driven by strong top line growth and ongoing large-scale projects
• Profit continued from contribution of sales of residential properties
• Continuing improvement in operational efficiency
E n g i n e e r i n g . L i f e s t y l e
Statement of Financial Position12
(S$’000) 31 May 11 31 May 10(Restated)
Current assets 196,071 146,594
- Construction work-in-progress in excess of progress billings 7,834 20,562
- Development properties 70,923 50,077
- Completed property held for sale - 4,707
- Cash and bank balances 45,631 7,371
Non-current assets 29,092 26,084
- Investment property 21,000 20,500
Total assets 225,163 172,678
Current liabilities 103,900 101,228
- Bank loans and overdrafts 19,596 38,245
- Trade payables 50,031 33,073
Total liabilities 166,193 136,921
Total debt (including finance leases)* 81,645 85,852
Shareholders’ equity 58,970 35,757
*Exclude long-term loan of $4,050,000 due to joint developer
E n g i n e e r i n g . L i f e s t y l e
Statement of Cashflows(S$’000) 31 May 11 31 May 10*
Operating cash flows before movements in working capital 20,526 17,837
Trade receivables 2,390 (8,330)
Construction work-in-progress in excess of progress billings 12,728 (16,890)
Cash generated from (used in) operating activities 55,125 (5,106)
Investment in associates (1,034) (2,187)
Loans to associates (8,749) (9,687)
Net cash used in investing activities (11,964) (12,187)
Net cash (used in) generated from financing activities (8,947) 16,114
+/- in cash & cash equivalents 27,021 (5,967)
(Overdrawn) cash & cash equivalents at beginning of the year (2,290) 3,761
Cash and cash equivalents (Overdrawn) at end of the year (Note A) 24,779 (2,290)
13
Note A (S$’000) 31 May 11 31 May 10*
Cash and bank balances 45,631 7,371
Bank overdrafts - (4,943)
Project accounts (12,327) (39)
Pledged fixed deposits (8,525) (4,679)
Total cash and cash equivalents (overdrawn) 24,779 (2,290)
*Restated
E n g i n e e r i n g . L i f e s t y l e
Key Ratios14
FY2011 FY2010(Restated)
ROE 28.8% 31.2%
ROA 7.7% 6.6%
Interest Cover 9.6X 8.5X
Current Ratio 1.9X 1.4X
Gross Gearing Ratio
(Total liabilities less secured loans / Equity)1.9X 2.9X
Net Gearing Ratio
(Total liabilities less cash equivalents and secured loans / Equity)1.1X 2.7X
E n g i n e e r i n g . L i f e s t y l e
Margin Trend15
FY2011FY2010
(Restated)
Gross Margin 11.7% 15.2%
Net Margin 6.6% 7.3%
EBIT Margin
(PBT net of interest income and interest expense)8.1% 9.8%
E n g i n e e r i n g . L i f e s t y l e
Per Share Statistics16
31 May 11 31 May 10(Restated)
Dividend per share (SGD cents) 2.25 2.20
Earnings per share (SGD cents)+ 5.56 4.04
31 May 11 31 May 10(Restated)
NAV per share (SGD cents)* 17.5 13.0
Current P/BV (closing price as at 18 July 2011)* 1.7 1.2
Current PER (closing price as at 18 July 2011)* 5.3 3.8
+:Based on weighted average number of ordinary shares of 311,300,956 (2010:281,641,365) in issue during the year
*: Based on ordinary shares of 343,759,998 (2010:281,642,372) in issue at the end of the year under review
Engineering
E n g i n e e r i n g . L i f e s t y l e
E n g i n e e r i n g . L i f e s t y l e
Recent Acquisitions 18
Global Environmental Technology Co., Ltd
• Acquired on 7 June 2011 through Chewathai Ltd (49%-owned)
• One of Thailand’s largest waste water treatment companies with a capacity of ~50,000 m3 per day.
• Set up to Build, Own, Operate and Transfer (BOOT) waste water treatment in the Bang Poo Industrial Estate in Samut Prakan Province.
• BOOT concession until 30 November 2029
E n g i n e e r i n g . L i f e s t y l e
Recent Acquisitions 19
Wireless Group with CMCTrisilco Folec Pte Ltd and Keppel Communications (Thailand) Pte Ltd
•Acquired 80% interest on 2 June 2011 through CMC Communications Sdn Bhd(50% owned JV company)
•Collectively referred to as the Wireless Group
•Well established in the telecommunications industry
•Involved in cellular space within
- Infrastructure engineering
- Outdoor and in-building management
- Program management and design engineering
- IT services and outsourcing
- Broadband wireless solutions
E n g i n e e r i n g . L i f e s t y l e
Contracts Secured20
Projects Contract ValueCommencement
Date
Estimated Completion
Date
Citi Campus - Proposed Addition and Alteration Works to Existing 8-Storey Commercial Building
S$11.0 million 30 Jun 2010 30 Sep 2011
National University Hospital -Remodelling of Existing Main Building
S$43.2 million 31 Aug 2010 30 Sep 2011
Construction and Completion of 120Mld Bertam DAF Phase 2 Water Treatment Plant
RM 63.3 million 3 May 2011 2 Mar 2013
E n g i n e e r i n g . L i f e s t y l e
Large-Scale Projects
Design and Build 1500 units of Public Housing in BruneiTotal Contract Sum: BND 147.5 million
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E n g i n e e r i n g . L i f e s t y l e
Large-Scale Projects
Electrical Installation Package for Marina Bay Sands Integrated ResortsS$128 million North PodiumSouth PodiumTheatre
MEPF Package for Asia Square Tower 1S$ 120 million
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Integrated Real Estate –Properties Development
E n g i n e e r i n g . L i f e s t y l e
Properties Development – Land Bank
Location Description Financial Value
85 Duku Road, Singapore (Rivan Court)
38-unites development on 21,625 sq ft of land with 1.4x plot ratio.
Purchase Consideration: S$14.8 million, S$684 ppr
91 Marshall Road, Singapore
5-storey development on 18,453 sqft of land with 1.4x plot ratio.
Purchase Consideration: S$13.3 million, S$721 ppr
JV - 5 Lorong 26, GeylangRoad, Singapore
106-units development on 26,625 sqft of land with 2.8x plot ratio. TEE (45%) joint venture with KSH (45%) & Heeton (10%)
Purchase Consideration: S$28.0 million, S$380 ppr
JV - MacPherson Road, Singapore (MacPherson Green)
200-units development on 140,557 sq ft of land with 2.1x plot ratio . TEE (20%), Heeton (40%), KSH (25%), Zap piling (15%)
Investment Value: S$21.0 million, S$662 ppr
JV - Lorong M, Telok KurauRd, Singapore (Camay Court)
70-units development on 44,702 sq ft of land with 1.4x plot ratio. TEE (32%), Heeton (36%), KSH (32%)
Investment Value: S$9.8 million, S$682 ppr
JV - District 9, Ho Chi Minh City, Vietnam
37 luxury villas on 64,885 sqft of land. TEE (65%) joint venture with Khang Viet Co. Ltd (35%)
Investment Value: S$8.5 million
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E n g i n e e r i n g . L i f e s t y l e
Properties Development – Singapore25
448@East Coast, soft launched in June 2011, TOP by 2015. 28-units development - a mix of 1 and 2 bedrooms apartments. 11,755 sqftof land with 1.4x plot ratio acquiredfor S$11.38 million. 15 units sold.
448@East Coast
E n g i n e e r i n g . L i f e s t y l e
Properties Development - Singapore26
The Peak@Cairnhhill, Joint Development Agreement between TEE (27%) and TG Development (73%) for a 7-plot size development at Cairnhill Circle. Soft launched in Jun 2011, TOP By 2014. 16 units sold.
The Peak @ Cairnhill
The Boutiq, launched in April 2011, TOP by 2015. Heeton (45%), KSH (35%) and TEE (20%) jointly acquired the former MitreHotel site at Killiney Road for S$121.0 million. 89 units sold.
The Boutiq
E n g i n e e r i n g . L i f e s t y l e
Properties Development – China
• Gaobeidian New Town, Shandong New Area: JV with Heeton & KSH to invest a total of RMB 16 billion in 8,000 MU (533.3 hectares) land
• Location: Located at the heart of Great Beijing Economic Circle, 82km from Beijing City
Situated next to Beijing-Shijiazhuang Expressway and the Beijing High-Speed Rail passenger line
Rapidly developing real estate market
• Phase 1:
Land area = 76.9 hectares
Construction period = 3-5 years
Construction area = 960,000m2
Orientated in constructing an urban garden model residential district
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Gaobeidian New Town
E n g i n e e r i n g . L i f e s t y l e
Properties Development – Thailand• Residential Development : Acquired a piece of
land in Bangkok’s Ramkhamhaeng Road, one of the busiest thoroughfare in the city for S$6.6 million (via combination of debt and equity financing) for 66,004 sqft
• Concept: One-bedroom and studio residential units for middle income residents who live and work close to the city centre of Bangkok.
• Location : With its frontage facing the Ramkhamhaeng Road, the site is near to the Ramkhamhaeng University (one of the largest and more popular universities in Thailand), the Rajamangala Stadium (Thailand’s largest stadium), The Mall Bangkapi (a mega shopping complex comprising three buildings) and the NidaUniversity.
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Ramkhamhaeng
Road
Integrated Real Estate – Completed Projects
E n g i n e e r i n g . L i f e s t y l e
E n g i n e e r i n g . L i f e s t y l e
Completed Projects – Singapore
The Thomson Duplex, our first completed residential development property, received its TOP in April 2010. The concept is “Elevated Living” and comprises 6 units of modern duplexes, 100% sold.
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Average Price S$ 1,250 psfTotal Gross Floor Area : 1,136.7 sqm
E n g i n e e r i n g . L i f e s t y l e
Cantiz@Rambai a 12-unit development was
first launched on 2008 and to date we have contracted sales of S$9.6 million as at 30 Nov 2010,
100% sold.
31
Completed Projects - Singapore
No.31 & 31 A Dunsfold Drive is a pair
of bungalow units. Received TOP in Dec 2010. 100% sold.
Average Price S$ 780 psfTotal Gross Floor Area : 1,072 sqm
Price S$ 14 millionLand Area: 1,055.5 sqm
E n g i n e e r i n g . L i f e s t y l e
Completed Projects - Thailand32
The Chewathai Ratchaprarop is a 26-storey contemporary condominium with 329 units targeted a mid to high income earners, at the heart of Bangkok city.
The Surawong is a 52 unit development and is a joint venture between its
associate company, Chewathai Ltd and Hup Soon Global Corp Ltd.
Looking ahead
E n g i n e e r i n g . L i f e s t y l e
E n g i n e e r i n g . L i f e s t y l e
In Summary
• Continues to maintains a positive outlook for Engineering and Integrated Real Estate segments in the next 6 months
• Strong order book position, sizeable land bank and strengthening management capabilities – enhanced the prospect of its future earnings
• Outstanding order book for the Engineering business stands at S$235.3 million
• Contracted sales of S$23.6 million for its ongoing residential development projects in Singapore and Thailand
• Integrated Real Estate business continued to gain traction both sales and the acquisition of land bank in Singapore and the region for future growth
34
Thank You!
T E E I N T E R N A T I O N A L L I M I T E D
E n g i n e e r i n g . L i f e s t y l e