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This presentation should be read in conjunction with TEE International Limited’s (the “Company”) Audited Full Year Financial
Statements for the period ended 31 May 2016 annual report released via SGXNET on 9 September 2016. The information contained
in this presentation has not been independently verified. No representation or warranty express or implied is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein.
The information contained in this document should be considered in the context of the circumstances prevailing at the time and
has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation.
Neither the Company nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or
otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its
contents or otherwise arising in connection with this presentation.
Certain statements in this presentation may constitute “forward-looking statements”, including forward-looking financial information.
Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements and financial information.
Such forward-looking statements and financial information are based on numerous assumptions regarding the Company’s present
and future business strategies and the environment in which the Company will operate in the future. Because these statements and
financial information reflect the Company’s current views concerning future events, these statements and financial information
necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking
statements and financial information. The Company expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement or financial information contained in this presentation to reflect any change in
the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such
statement or information is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST
and/or any other regulatory or supervisory body or agency. You are cautioned not to place undue reliance on these forward-
looking statements, which are based on the current view of management on future events.
This presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies,
where appropriate, as well as market research, publicly available information and industry publications. Industry publications,
surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but
there can be no assurance as to the accuracy or completeness of such included information. While the Company has taken
reasonable steps to ensure that the information is extracted accurately and in its proper context, the Company has not
independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon
therein.
Company Profile
4
Founded in 1991, TEE International Limited builds on
our core engineering origins to evolve into a
dynamic group with business interests in engineering,
real estate and infrastructure, which spans
across 7 countries in Asia-Pacific.
1991 – 1995 Established as general
Electrical contractors
1996 – 2000 Expanded engineering
business into Malaysia &
Thailand
2001 – 2005 Listed on SGX SESDAQ with
a market cap of
S$16M & moved into
facilities mgmt business
in Thailand
2006 – 2010 Diversified into real
estate development in
Singapore & Thailand and
upgraded to
SGX Mainboard
2011 – 2016 Extended into other
regional markets –
Hong Kong, New Zealand,
Australia.
Diversified into
infrastructure business –
wastewater treatment
in Thailand & powerplant in
Philippines
Expanded into short-term
accommodation business
Issued bonus warrants
Listed real estate
subsidiary – TEE Land
Limited
Listed associated
companies – CMC
Infocomm Limited &
Chewathai PCL
Regionalisation and Diversification Focus
Mo
vin
g u
p t
he
Va
lue
Ch
ain
TEE Group at a Glance
5
TEE International Limited Listed on SGX Mainboard
• TEE Land Limited 63.18% owned
subsidiary listed on SGX Mainboard
• Regional real estate developer
ENGINEERING REAL ESTATE INFRASTRUCTURE
• Integrated engineering solutions
provider
• Specialises in M&E engineering and Building & Construction
• Invests in infrastructure assets & businesses relating to Water, Power & Infocommunications
Strategic focus for growth
6
Regional total solutions provider in Asia-Pacific
Focus on building business excellence
Partner of choice that delivers value
Our Goals
Integrated
Platform
Engineering
Infrastructure Real Estate
Business synergies from core
engineering fundamentals
Our
Regional
Footprint
Strengthening foothold in
overseas market
Building on business
excellence for growth
Human Capital
Value Creation
Business Quality
GROWTH
Singapore Malaysia
Thailand Philippines
Hong Kong Australia
New Zealand
Regional Footprint
7
Thailand
• 11 real estate
developments
• Facilities
management
• Invested & manages 2
wastewater
treatment plants
Thailand
Malaysia
Malaysia
• Construction of water
treatment plant
• Flagship mixed
development project
in Cyberjaya
Singapore
Singapore
• 70% of S$372M order book
• 24 real estate development
• Expanding into Waste-to-Energy
business
Australia
New Zealand
Australia • Owns 2 boutique
hotels in Sydney
New Zealand
• Owns 1 workers’ short
term accommodation &
1 guesthouse in
Christchurch
Philippines
Philippines
• Invested in a 25MW
power plant
Hong Kong
Hong Kong
• Engineering works for
The Parisian, Macao
9
Suite of Engineering Capabilities
Builders Architectural Civil & Structure Mechanical &
Electrical
BCA CW01 Work Head A1 Grading
BCA ME15 Work Head L6 Grading
BCA ME01 Work Head L6 Grading
BCA ME05 Work Head L6 Grading
BCA CR06 Work Head L6 Grading
10
Engineering Business
Mission Critical Projects
Remodelling of NUH
Upgrading & fitting-out of existing MRT
stations
Upgrading & fitting-out of
shopping complex
Upgrading & fitting-out of institutions of
higher learning
Upgrading & fitting-out of commercial
banks
Focus on Rebuilding Projects
Building & Construction Division
11
Focus on Mega Integrated M&E and Special Services
Projects
Mechanical & Electrical Division
Asia Square
Tower One
Procter & Gamble
Singapore
Innovation Centre
Marina Bay
Sand Integrated
Resorts
Changi Airport Group
Marina One
Development
Engineering Business
Major ongoing engineering projects
12
Marina One Contract Value:
S$142.2M
Changi Airport Group Contract Value: S$177M*
*Cumulative figure of contracts awarded
Tampines Hub Contract Value: S$33.0M
Frasers Tower Contract Value:
S$43.9M
MDIS – Educity@Iskandar Contract Value: S$70.0M
AXA Tower Contract Value: ~S$90.0M
Outstanding
Order Book:
S$316M As at 31 Aug 16
Kedah WTP Contract Value: S$15.6M
Engineering Order Book Trend & Outlook
13
23 31 34 33 55
35
150
256
198
235 214 215
360
455
316
0
50
100
150
200
250
300
350
400
450
500
SG
D ‘m
il
ORDER BOOK
• Bidding for large-scale and sizable projects
• Expansion of Changi Airport (Changi
East development) presents
opportunities due to strong track
record
• Higher demand for public sector
projects i.e. institutions, healthcare
facilities that requires complex
engineering solutions
• Continue to scale up the engineering
business
Real Estate Regional Presence
15
Thailand
Malaysia
Singapore
New Zealand
THAILAND
11 Chewathai RBF 2
Chewathai Interchange
Chewathai Residence Bang Pho
Hallmark Chaengwattana
Hallmark Ngamwongwan
Chewathai Ratchaprarop
The Surawong
Chewathai Ramkhamhaeng
Chewathai RBF 1
Chewathai Petchkasem 27
Chewarom Rangsit – Don Meaung
MALAYSIA
1 Third Avenue, Cyberjaya
SINGAPORE
23 Cantiz @ Rambai
The Thomson Duplex
31 &31A Dunsfold
448 @ East Coast
91 Marshall
Aura 83
The Peak @ Cairnhill I
223@ Mountbatten
The Boutiq
TEE Building
Palacio
Sky Green
Rezi 26
Hilbre28
Rezi 3Two
Newest
Floraville,Flora Vista, FloraView
Trio
Hexacube
183 LONGHAUS
Harvey Ave
Geylang Lor 35
241 Pasir Panjang Road
AUSTRALIA
2 Quality Hotel CKS Sydney Airport
Larmont Sydney
NEW ZEALAND
2 Workotel @ Riccarton
Thistle Guesthouse
Australia
Real Estate Developments & Outlook
16
Mixed development (former Longhouse)
Residential units over 75% sold
Commercial units not launched
Hilbre28 along Hillside Drive close to 60%
sold to date
• Focus on identifying well-located freehold properties and land to acquire in Singapore
and the region
• Continue to grow the portfolio of investment
properties for recurring income
• Take on more majority-owned development projects
11
29.7
40.3
60.2
33.7
-0.7
2.9
9.2 10
14.7
1.5 3.9
11.9 9.9
7.3
-10
0
10
20
30
40
50
60
70
SG
D (
mil)
Revenue Share of Results of Associates Net Profit
FY2012 FY2013 FY2014 FY2015 FY2016
Real Estate Portfolio
17
RBF 1 - Chewathai Rezi3Two 91 Marshall Workotel
Third Avenue Chewathai
Interchange Quality CKS Sydney
Airport Hotel
Chewathai
Petchkasem 27
Growing the Infrastructure Business
19
•Natural progression for TEE given our background in M&E
•Moving up the value chain to own the assets
•Focus on Water, Power & Infocommunications segment
Play in the NICHE space
Having the
MARKET
Knowledge
• Need to expand overseas, given the limited scope and
breadth in Singapore
• Leverage on our TEE network or work through a strong local
partner
• We play in a space that the big established infra players
cannot enter
• To move their needle, the “Bigger Boys” look at projects
>US$75M
• So we actively hunt for projects in the range of < US$75M
EXPERTISE to
undertake
these Infra
projects
Infrastructure Business Outlook
20
Power Sector in Philippines
• Strong Pipeline by private sector with
5.2 GW of committed generation capacity
under development
• 13 million number of Filipinos still living with
out power large capacity are still needed
to meet the demand-supply gap
• Government has plans to increase the
domestic electrification rate to 90% by
2017, private investment will be required
to support addition to capacity
• Expected aggregate investment
opportunity of about US $25 billion until
2030.
Water Sector in Thailand
• Water resources in Southeast Asia are
under strain from rapid urbanisation and
industrialisation
• Water pollution in Thailand is one of the
severe environmental problems.
• Bangkok Metropolitan Administration is
determined to reduce the amount of
wastewater pollution
• GETCO is currently one of the leading
wastewater treatment companies in
Thailand with total capacity of 350 million
litres per day.
• Leverage on capabilities to operate and
maintain other wastewater treatment
plants under the Bangkok Metropolitan
Administration.
Current Infrastructure Projects
21
Water
Global Environmental
Technology Co. Limited
(GETCO) Description
Investment
(49% ownership) S$5M
IRR 21.7%
Capacity 350,000 m3 per day
Competitive Advantages
Leading player in
Thailand
One of largest waste water treatment companies in Thailand with a capacity
of 350 million litres of waste water treated every day.
Diversified sources of
income
Provides wastewater treatment from multiple entities and sectors, ranging from
commercial, industrial and residential communities.
First underground waste
water treatment plant
Operates first underground waste water treatment plant in Bang Sue.
Underground waste water treatment plants generally provides advantages
such as efficient land usage as well as environment preservation.
Key Statistics
Current Infrastructure Projects
22
Power
Key Statistics Powersource Philippines
Distributed Power Holdings Description
Investment
(21% ownership)
S$ 4.2 million
IRR 14%
Capacity 25MW
Competitive Advantages
Strategic Partnership Facility is embedded into Lafarge cement plant. Lafarge Philippines is part of
the Lafarge Group, which is world leader in building materials and major player
in cement provider. One of the key partners include the country chairman for
Jardine Matheson Group in Philippines.
Secured Power
purchase Agreement
Secured a 25 year PPA with Illigan Light and Power Inc, which is the twelve
largest private distribution utility in Philippines. This allows TEE to attain
guaranteed cash flow in the entire 25 year horizon, which will limit our
downside
Participation of
renowned Japanese
Company Nippon Koei
Japan’s Number 1 International Engineering Consultant Nippon Koei has
entered into the strategic partnership in 2015. Nippon Koei has acquired equity
stake in power plant.
Key Achievements in FY2016
24
Largest Rebuilding
Contract
AXA Tower
Gaining Foothold With
Changi Airport Group
Changi East Development
Broadening Infrastructure
Engineering Base
Wastewater Treatment
Plant in Kedah
Multiple Growth Platforms
New Heights Attained Robust Partnership Foundation for Future
Recent Developments
25
• Total unfulfilled order book of S$316M
• New contract from repeat customer (CAG)
• New large-scale project to provide A&A works for existing office tower
Engineering
• Strategic partnership of Nippon Koei Co., Ltd. and its investment into Philippines Distributed Power Holdings, Inc.
• Expanding into Waste-to-Energy segment
Infrastructure
• Associated company Chewathai Public Company Limited listed on SET in April 2016
• New land acquisitions in Singapore and Thailand
• Steady sales for our developments
Real Estate
Evolution of E&C
27
Large Scale
New Projects
Fast Turnaround
Rebuilding Projects
Infrastructure
Engineering Engineering
Strategy
Key Projects
• Marina One
• Marina Bay Sands
• Asia Square
• Frasers Tower
• AXA Building
• Centre Point
• PSB Academy
• Kedah Water Plant
• Changi East
Development
Offering diverse set of Engineering Solutions
Rationale
Long Visibility &
Significant addition
to order book
Fast Turnaround –
Aids in Cash Flow
Infrastructure is a
focus for
Government
Geared Up for Growth
28
Year: 2001
Total Market Capitalisation:
SGD 16m
Employees: 160
Countries Ventured: 2
Revenue: S$50m
Significant Growth Since 2002
Year : 2016
Total Market Capitalisation:
SGD 110m
Employees: 450
Countries Ventured: 7
Revenue: S$250m +
Strategic Diversification
29
100%
Revenue Segment
Engineering
Early Years to 2011
95%
5%
Revenue Segment
Engineering
Real Estate
From 2012
65%
34%
1% Revenue Segment
Engineering
Real Estate
Infrastructure
2016 and
Beyond
Strategic Diversification
Into the Horizon
30
Horizon The Into
Visible Profit Streams
PowerPlant
coming online
Engineering Order
Book at S$372m
Sales from
Cyberjaya
Future Tenders
Expanding into
Waste to Energy
Infrastructure &
Engineering new
Business
Investment Merits
32
Established & Proven Track Record
Integrated Business Platform with
Synergies to Create Value
Established Regional Network
Long Term Partnerships with Regional
Local Reputable Partners
Dedicated & Experienced
Management Team
1
2
3
4
5
Financial Snapshot of FY2016
34
0
50
100
150
200
250
300
82% since 2012
Source: Bloomberg
Strong track record of 10 years Revenue
growth at 14% CAGR S$’Mil
FY16
Revenue
S$261m
Growth
From
FY15
20%
Revenue
35
-15
-10
-5
0
5
10
15
20
25
-15
-10
-5
0
5
10
15
20
25
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 2016
Net Income
Strong track record of 10 years Net Income
growth at 13.4% CAGR
Resilient against
slowed GDP growth
Source: Bloomberg
% S$’Mil
Financial Snapshot of FY2016
Revenue by BU
36
0
50
100
150
200
250
300
FY2012 FY2013 FY2014 FY2015 FY2016
[VALUE]
(92%)
[VALUE]
(85%) [VALUE]
(79%) [VALUE]
(70%)
[VALUE]
(85%)
[VALUE] (8%)
[VALUE] (14%)
[VALUE] (20%) [VALUE] (28%)
[VALUE] (13%)
[VALUE] (1%) [VALUE] (1%)
[VALUE] (1%)
[VALUE] (1%) [VALUE] (8%)
[VALUE] (1%)
S$
’mil
Engineering Real Estate Infrastructure Corporate & Others
Revenue by Geography
37
0
50
100
150
200
250
300
FY2012 FY2013 FY2014 FY2015 FY2016
[VALUE]
(72%)
[VALUE]
(54%)
[VALUE]
(74%)
[VALUE]
(79%)
[VALUE]
(77%)
S$
’mil
Singapore Malaysia Thailand Brunei Hong Kong Australia
Profit & Loss Highlights
38
(S$‘000) FY2016 FY2015
Revenue 261,706 217,895
Gross Profit 29,855 35,862
Gross Profit Margin 11% 16%
Profit for the Year 10,719 12,882
Profit Margin 4% 6%
Finance Expenses 8,793 7,037
EBITDA 23,844 23,079
Interest Cover Ratio 2.2 times 2.8 times
Balance Sheet Highlights
39
(S$‘000) As at 31 May
2016 As at 31 May 2015
Total Assets 592,951 557,575
Total Liabilities 423,916 395,389
Secured Debt 198,721 177,366
Total Debt 271,358 256,677
Total Equity 169,035 162,186
Secured Debt to
Total Assets 0.34 times 0.32 times