Results Presentation - Yongmao Holdings...

Yongmao Holdings LimitedYongmao Holdings LimitedIncorporated in the Republic of Singapore Company Registration No.200510649K

Results Presentation27 May 2009

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AgendaAgenda

About YongmaoAbout Yongmao

FY09 Performance ReviewFY09 Performance Review

Outlook & StrategyOutlook & Strategy

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We are a We are a designer and manufacturer of towercranesdesigner and manufacturer of towercranesand towercrane components and accessoriesand towercrane components and accessories

Our towercranes are sold mainly to Our towercranes are sold mainly to construction construction companies and equipment rental companiescompanies and equipment rental companies in the in the PRC and to PRC and to construction equipment distributors and construction equipment distributors and equipment rental companiesequipment rental companies in America, Europe, Asia in America, Europe, Asia & Middle East and Africa& Middle East and Africa

Towercranes are used mainly in Towercranes are used mainly in construction sites, construction sites, infrastructure projects and in the shipbuilding industryinfrastructure projects and in the shipbuilding industry

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2007 FSYM Construction became a 100% subsidiary of the Company

2005 Further expanded Topless series towercranes FYEM � 1st towercrane manufacturer in China to qualify for CE Marking JV with SGX-ST listed Tat Hong and its subsidiary, Leadpoint Incorporated Singapore holding company Transfer of certain assets from FYEM to Fushun Yongmao Machinery

Construction Co., Ltd (FSYM Construction)

2002 Introduced ST series towercranes

20042004 Expanded Topless series and introduced Luffing seriesExpanded Topless series and introduced Luffing series

1998 Launched its first crane � QD8

19961996 Established Fushun Yongmao Engineering Machinery Co., Ltd (FYEM)Established Fushun Yongmao Engineering Machinery Co., Ltd (FYEM), a , a 75%75%--owned subsidiary, to manufacture and sell construction equipmentowned subsidiary, to manufacture and sell construction equipmentaccessories accessories

MilestonesMilestones

1992 Founded Fushun Yongmao Industry and Trade Co. Ltd with main business of selling and distributing construction materials and metal casting parts

19991999 Launched Topless STT towercranesLaunched Topless STT towercranes

20062006 Commencement of business operations under FSYM ConstructionCommencement of business operations under FSYM Construction

20082008 Listed on SGX main boardListed on SGX main board

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2009 Incorporated Towercrane Rental company Beijing Tathong Zhaomao Co Ltd Yongmao owned 45% and 55% owned by Tat Hong

Various new product launched including: STT 753 STL 420 ST 80/75

20082008 Established of JV in Wuxi called Wuxi Yongmao Towercrane Co. LtdEstablished of JV in Wuxi called Wuxi Yongmao Towercrane Co. Ltd (Wuxi (Wuxi YongmaoYongmao

Wuxi Yongmao is 80% owned by Fushun YongmaoWuxi Yongmao is 80% owned by Fushun Yongmao

First Crawler Crane SQ600 shipped to Tat Hong Singapore

Milestones Milestones �� 2008 & 20092008 & 2009

Completed the Acquisition of Beijing Yongmao Jiangong Machinery Construction Co. Ltd (Beijing Yongmao)

Beijing Yongmao is now 66% owned subsidiary of Fushun Yongmao

Obtained Singapore MOM approval for STL230Obtained Singapore MOM approval for STL230

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Our Products Our Products -- TowercranesTowercranes

Topless STT ST Luffing STL Derrick Q

TTOWERCRANESOWERCRANES

Topless STT

ST

Luffing STL Derrick Q

We have 4 series of towercranes:

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Topless STT

24 models 24 models

Capacity: 4 Capacity: 4 -- 24 tonnes24 tonnes

Suitable for largeSuitable for large--scale projects with space constraintsscale projects with space constraints

Revenue contribution : Revenue contribution : FY2009: 43.8% FY2009: 43.8% ↓↓

FY2008: 50.4%FY2008: 50.4%

ST

14 models 14 models


Suitable for use in construction sites of all sizesSuitable for use in construction sites of all sizes

Revenue contribution : Revenue contribution : FY2009: 39.3% FY2009: 39.3% ↑↑

FY2008: 29.8%FY2008: 29.8%

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Luffing STL

14 models 14 models


Suitable for use in congested worksites where Suitable for use in congested worksites where there is space constraintthere is space constraint

Revenue contribution : Revenue contribution : FY2009: 10.4% FY2009: 10.4% ↑↑

FY2008: 8.3%FY2008: 8.3%

Derrick Q

3 models 3 models


Designed specially for dismantling internal climbing Designed specially for dismantling internal climbing towercranes in a safe and reliable mannertowercranes in a safe and reliable manner

Revenue contribution : Revenue contribution : FY2009: 0.1%FY2009: 0.1%FY2008: 0.3%FY2008: 0.3%

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Towercrane Components and AccessoriesTowercrane Components and Accessories

We also manufacture and/or sell towercrane components and We also manufacture and/or sell towercrane components and accessoriesaccessories

Enable customers to replace worn out or faulty components and toEnable customers to replace worn out or faulty components and toextend height of towercranes and length of jibsextend height of towercranes and length of jibs

Revenue contribution : Revenue contribution : FY2009: 6.4% FY2009: 6.4% FY2008: 11.2%FY2008: 11.2%

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3 Production facilities :3 Production facilities :�� Fushun City, LiaoningFushun City, Liaoning

�� BeijingBeijing

�� WuxiWuxi

Where We AreWhere We Are

Fushun

Beijing �

Wuxi

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Investment HighlightsInvestment Highlights

Depth and breadth of management experienceDepth and breadth of management experience

Wide product rangeWide product range

Strong R&D focusStrong R&D focus

Good exposure to overseas & domestic marketsGood exposure to overseas & domestic markets

Industry-wide recognition for quality and reliabilityIndustry-wide recognition for quality and reliability

Good control over critical stages of the value chainGood control over critical stages of the value chain

Significant barriers to entrySignificant barriers to entry

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Good Value Chain ControlGood Value Chain Control

Established network of domestic and overseas customersEstablished network of domestic and overseas customers

InIn--house capabilities to develop new products to cater to house capabilities to develop new products to cater to market demandmarket demand

Cutting MachiningSurface

TreatmentTesting

DesignDesign

ManufactureManufacture

Sales & MarketingSales &

Marketing

Ability to deliver orders in 30 Ability to deliver orders in 30 -- 90 days90 days

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IndustryIndustry--wide recognitionwide recognition

Established Track RecordEstablished Track Record Towercranes employed in prominent commercial and infrastructure Towercranes employed in prominent commercial and infrastructure

projects overseas and in the PRCprojects overseas and in the PRC

China National Opera House China

Olympic Stadium China

Qinshan Nuclear Power StationChina

AZ - St. Jan General HospitalBelgium

Turf CityDubai, UAE

Fujian LNG ProjectChina

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IndustryIndustry--wide recognitionwide recognition

Strong Brand RecognitionStrong Brand Recognition

抚顺名牌产品抚顺名牌产品 Fushun Famous Brand Product (for Topless Fushun Famous Brand Product (for Topless towercranes) towercranes)

辽宁省名牌产品辽宁省名牌产品 Liaoning Province Famous Brand (for Topless Liaoning Province Famous Brand (for Topless towercranes)towercranes)

辽宁省中小企业名优产品辽宁省中小企业名优产品: : 金奖金奖 Liaoning Province SME High Liaoning Province SME High Quality WellQuality Well--Known Product: Gold Award Known Product: Gold Award

辽宁省著名商标辽宁省著名商标��永茂永茂�� Liaoning Province Famous Brand Liaoning Province Famous Brand ��YongmaoYongmao��

Our 3 brands :Our 3 brands :

永茂

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Stringent Quality Control and Assurance Standards Stringent Quality Control and Assurance Standards

ISO 9001:2000 Quality Management System CertificateISO 9001:2000 Quality Management System Certificate

KOSHA CertificateKOSHA Certificate

CE MarkingCE Marking

UkrSEPRO CertificateUkrSEPRO Certificate

Singapore MOM approvalSingapore MOM approval

GOST approval GOST approval -- RussiaRussia

Industry-wide recognition

First Chinese towercrane manufacturer to qualify for the CE Marking, a certification which allows our products to be sold and used in Europe

Obtained approval for our STL 230 to be sold and used in SINGAPORE

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Good Exposure to Overseas MarketsGood Exposure to Overseas Markets

CHINACHINAUnited StatesUnited States

PanamaPanamaTrinidad & Trinidad &

TobagoTobagoEcuadorEcuador

BrazilBrazil

ChileChile

AngolaAngola

ZambiaZambia

South AfricaSouth Africa

TanzaniaTanzania

AustraliaAustraliaNZNZ

IndonesiaIndonesia

SingaporeSingaporeMalaysiaMalaysia

PhilippinesPhilippines

MacauMacauHKHK

ThailandThailand

RussiaRussia

S. KoreaS. Korea

NigeriaNigeria

FinlandFinland

IrelandIreland UKUK

BelgiumBelgium

FranceFrance

AustriaAustriaUkraineUkraine

RomaniaRomania

TurkeyTurkey

Middle Middle EastEast

IndiaIndia

Sri LankaSri Lanka

Global Presence Global Presence �� Product used in more than Product used in more than 60 Countries60 Countries

CyprusCyprus

NamibiaNamibia

EgyptEgyptVietnamVietnam

AzerbaijianAzerbaijian

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LongLong--term Partnerships with:term Partnerships with:

Good Exposure to Overseas MarketsGood Exposure to Overseas Markets

Customers Country

House of Equipment L.L.CHouse of Equipment L.L.C UAE, Middle EastUAE, Middle East

Lewis Equipment CompanyLewis Equipment Company United StatesUnited States

Jin Long B.V.B.A.Jin Long B.V.B.A. Belgium, EuropeBelgium, Europe

AST Equipment (HK) Co. LtdAST Equipment (HK) Co. Ltd Hong Kong, AsiaHong Kong, Asia

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LongLong--term Partnerships with:term Partnerships with:

Strong Customer Base in PRC Domestic Strong Customer Base in PRC Domestic MarketsMarkets

Customers Country

China Nuclear Huaxing Tat Hong Machinery China Nuclear Huaxing Tat Hong Machinery

Construction Co LtdConstruction Co Ltd

PRCPRC

Shanghai Tat Hong Equipment Rental Co LtdShanghai Tat Hong Equipment Rental Co Ltd PRCPRC

Shanghai Jian Gong GroupShanghai Jian Gong Group PRCPRC

Beijing Jian Gong GroupBeijing Jian Gong Group PRCPRC

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Strong R&D FocusStrong R&D Focus

Strong InStrong In--house R&D and Technical Capabilitieshouse R&D and Technical Capabilities

Developed approximately 50 models and subDeveloped approximately 50 models and sub--models of towercranesmodels of towercranes

Ability to develop and customize new products to cater to marketAbility to develop and customize new products to cater to marketdemanddemand

R&D team comprises 30 designers and engineers who use computerR&D team comprises 30 designers and engineers who use computer--aided design applications, reducing time and costs in designingaided design applications, reducing time and costs in designing

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Wide Product RangeWide Product Range

Offer a variety of towercranes with Offer a variety of towercranes with lifting capacity ranging from 80 lifting capacity ranging from 80 �� 500 500 tonne metrestonne metres

Licensed to manufacture highLicensed to manufacture high--tonnage hoisting machinery tonnage hoisting machinery ((超大型起重机超大型起重机))

Offer technical advice and afterOffer technical advice and after--sales sales maintenance services to keep our maintenance services to keep our cranes operationally safe, efficient cranes operationally safe, efficient and reliableand reliable

Wide Range of Towercranes and Comprehensive Range of Technical Wide Range of Towercranes and Comprehensive Range of Technical Advice and AfterAdvice and After--sales Maintenance Servicessales Maintenance Services

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Depth & Breadth of Management ExperienceDepth & Breadth of Management Experience

Founder and Executive Chairman, Mr Sun Founder and Executive Chairman, Mr Sun Zhao Lin Zhao Lin ((孙兆林孙兆林)), and Co, and Co--founder and CEO founder and CEO Ms Tian Ruo NanMs Tian Ruo Nan ((田若南田若南)), possess , possess more than more than 10 years10 years�� experience eachexperience each in crane in crane manufacturing businessmanufacturing business

Together with the senior management, Together with the senior management, Yongmao is able to Yongmao is able to formulate and implement formulate and implement business strategiesbusiness strategies and and introduce new introduce new productsproducts to meet market demand to meet market demand

Experienced and Capable Management TeamExperienced and Capable Management Team

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Significant Barriers to EntrySignificant Barriers to Entry

Requires high level of expertise and Requires high level of expertise and experienceexperience

High initial capital investmentHigh initial capital investment

Need for track record and customer baseNeed for track record and customer base

Ability to comply with various safety Ability to comply with various safety standardsstandards

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AgendaAgenda




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Revenue & Profit Revenue & Profit

(RMB �000) Q4FY09 Q4FY08 FY09 FY08

RevenueRevenue 69,49769,497 189,560189,560 594,467594,467 652,832652,832

Gross ProfitGross Profit 5,9005,900 68,19268,192 180,885180,885 242,167242,167

Profit before TaxProfit before Tax (20,063)(20,063) 25,27625,276 56,67856,678 126,464126,464

NPAT NPAT (Attributable to Shareholders (Attributable to Shareholders

of the Company)of the Company)(19,487)(19,487) 21,30321,303 47,53247,532 122,491122,491

EPS (RMB cents)EPS (RMB cents) (4.4)(4.4) 5.65.6 10.710.7 32.332.3

NET PROFIT AFTER TAX

0

50

100

150

FY08 FY09 Q4FY09

Q4FY08

653

594

190

69

0

100

200

300

400

500

600

FY08 FY09 Q4FY09 Q4FY08

REVENUE

122

48

21

(19)

700

RMB �mRMB �m

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Revenue & Gross Profit (FY09 v FY08)Revenue & Gross Profit (FY09 v FY08)

�� Group Revenue Group Revenue decline by 8.9%decline by 8.9% for FY09 and gross profit by 25.3% :for FY09 and gross profit by 25.3% :

�� Lower export sales to Lower export sales to USA, Europe and Middle East marketUSA, Europe and Middle East market

�� Export markets affected by Export markets affected by deteriorating global economydeteriorating global economy

�� Mitigated by higher sales in PRCMitigated by higher sales in PRC

�� Gross margin % Gross margin % decline by 6.7%decline by 6.7%::

�� Higher sales of lower margin ST series towercranesHigher sales of lower margin ST series towercranes

�� Higher average cost of steel materialsHigher average cost of steel materials

�� Lower average selling price due to price competitionLower average selling price due to price competition

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Net Profit After Tax Net Profit After Tax (attributable to shareholders)(attributable to shareholders)

0

20

40

60

80

100

120

140

FY08 FY09

122.5

47.5

Net Profit (FY09 vs. FY08) Net profit attributable to Net profit attributable to

shareholders decline due to shareholders decline due to lower saleslower sales and and gross margin gross margin %%

Higher operating expenses Higher operating expenses due to:due to:

�� Higher corporate expensesHigher corporate expenses as as a listed Companya listed Company

�� Higher Higher RentalRental & & ForexForex losseslosses

�� Higher tax expenses in FY09 Higher tax expenses in FY09 due to due to expiry of tax exemption expiry of tax exemption from Jan 08from Jan 08. .

61%61%

RMB�m

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Revenue Breakdown Revenue Breakdown �� Geography Geography �� Full YearFull Year

25%

32%

43%

39%

17%

44%

FY09 FY08

USA & EuropePRC Middle East, Asia & Others*

* Revenue classified under Middle East, Asia & Others excludes r* Revenue classified under Middle East, Asia & Others excludes revenue from the PRCevenue from the PRC

Growing revenue contribution from domestic PRC market

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Revenue Breakdown Revenue Breakdown -- Geography Geography �� 4 Quarter4 Quarter

37%

18%

45%

20%

78%

2%

Q4 FY09Q4 FY08

USA & EuropePRC Middle East, Asia & Others*


Domestic PRC sales form 78% of Revenue in Q4

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Number of Towercranes SoldNumber of Towercranes Sold


Growing Domestic PRC market

Q4 FY09 Q4 FY08 FY09 FY08

PRC 48 65 208 99

Middle East,

Asia &

Others

8 51 194 199

Europe &

USA

1 23 53 121

Total

57 139 455 419

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Balance Sheet and Key RatiosBalance Sheet and Key Ratios

(RMB (RMB ��m)m) 31 Mar 0931 Mar 09 31 Dec 0831 Dec 08 31 Mar 0831 Mar 08

Total nonTotal non--current assetscurrent assets 274.3274.3 228.5228.5 183.5183.5

Cash & cash equivalentsCash & cash equivalents 106.8106.8 127.3127.3 200.3200.3

Other current assetsOther current assets 401.4401.4 308.0308.0 335.0335.0

Total AssetsTotal Assets 782.5782.5 663.8663.8 718.8718.8

Total equity Total equity 488.7488.7 491.2491.2 445.2445.2

Total liabilitiesTotal liabilities 293.8293.8 172.6172.6 273.6273.6

Total Equity & LiabilitiesTotal Equity & Liabilities 782.5782.5 663.8663.8 718.8718.8

Ratios Ratios

ROEROE 10.3%10.3% 18.4%18.4% 27.5%27.5%

Debtor Turnover DaysDebtor Turnover Days 2323 1010 66

Creditor Turnover DaysCreditor Turnover Days 6060 4141 3737

Inventory Turnover DaysInventory Turnover Days 157157 110110 7272

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Cash FlowCash Flow

(RMB (RMB ��m)m) 31 Mar 0931 Mar 09 31 Dec 0831 Dec 08 31 Mar 0831 Mar 08

OperationsOperations (31.6)(31.6) (48.1)(48.1) 91.991.9

InvestmentsInvestments (98.5)(98.5) (49.0)(49.0) (150.1)(150.1)

FinancingFinancing 45.245.2 28.628.6 208.0208.0

Opening balanceOpening balance 200.3200.3 200.3200.3 50.350.3

Exchange adjustmentsExchange adjustments (8.7)(8.7) (4.5)(4.5) 0.20.2

Closing balanceClosing balance 106.7106.7 127.3127.3 200.3200.3

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SGX Listed PeersSGX Listed Peers Price (S$)Price (S$)21 May 0921 May 09

Market Cap Market Cap (S$(S$��m)m)

P/E (x)P/E (x) P/Bk (x)P/Bk (x)

Tat HongTat Hong 1.061.06 526.5526.5 6.56.5 1.51.5

Tiong WoonTiong Woon 0.420.42 141.8141.8 4.04.0 1.01.0

YongmaoYongmao 0.220.22 97.697.6 3.23.2 1.01.0

Valuation Comparison Valuation Comparison -- OutstandingOutstanding

Foreign Listed PeersForeign Listed Peers PricePrice21 May 0921 May 09

Market Cap Market Cap (USD(USD��m)m)

P/E (x)P/E (x) P/Bk (x)P/Bk (x)

TadanoTadano JPY466.00JPY466.00 639.1639.1 10.710.7 0.70.7

Favelle FavcoFavelle Favco MYR 0.85MYR 0.85 41.341.3 6.76.7 0.90.9

KomatsuKomatsu JPY 1350.00JPY 1350.00 14,279.914,279.9 17.117.1 1.61.6

ManitowocManitowoc US 6.08US 6.08 792.5792.5 2.52.5 1.31.3

Changsha ZoomlionChangsha Zoomlion CNY20.94CNY20.94 4,666.84,666.8 20.320.3 6.36.3

LonkingLonking HKD7.76HKD7.76 1,071.01,071.0 11.011.0 2.32.3

Source: BloombergSource: Bloomberg

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AgendaAgenda




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OutlookOutlook

Global economy expected to be challenging for 2009 and Global economy expected to be challenging for 2009 and challenging business environment in our export marketschallenging business environment in our export markets

Construction activity in PRC however is expected to grow Construction activity in PRC however is expected to grow

Supported by Government RMB4 Trillion (US$500+ Billion) stimulusSupported by Government RMB4 Trillion (US$500+ Billion) stimuluspackage and continued spending on infrastructure projects such apackage and continued spending on infrastructure projects such as s railway transportation, electricity, disaster rebuilding, etcrailway transportation, electricity, disaster rebuilding, etc

PRC economy expanded 6.1% in the 1PRC economy expanded 6.1% in the 1stst Quarter 2009, Full year Quarter 2009, Full year estimated 8% growthestimated 8% growth

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StrategyStrategy

Improve product rangeImprove product range and and customer basecustomer base

Continued R&D investment to develop new products and Continued R&D investment to develop new products and improve existing tower crane modelsimprove existing tower crane models

Strengthen customer base in existing and new marketsStrengthen customer base in existing and new markets

Explore strategic investmentExplore strategic investment or acquisition opportunitiesor acquisition opportunities

Venture in Towercrane Venture in Towercrane RentalRental business in PRC : business in PRC :

with with TAT HONG, TAT HONG, setting up ofsetting up of

Beijing Tathong Beijing Tathong Zhaomao Zhaomao

Equipment Rental Co LtdEquipment Rental Co Ltd

To expand through acquisitions, JVs or strategic alliancesTo expand through acquisitions, JVs or strategic alliances

Yongmao Holdings LimitedYongmao Holdings LimitedIncorporated in the Republic of Singapore Company Registration No.200510649K

Results Presentation27 May 2009

Results Presentation - Yongmao Holdings...

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