Union Steel Holdings Limited · SGX:ZB9
Union Steel — Q2 2014 Earnings Presentation
10 slides from Union Steel's earnings presentation, Feb 13, 2014
Slide 1: Union Steel Holdings Limited 2Q and HY 2014 Results
UNION STEEL HOLDINGS LIMITED 2Q AND HY 2014 RESULTS 13 FEBRUARY 2014 1
Slide 2: About Union Steel
About Union Steel Founded in 1984, Union Steel Holdings Limited started operations as YLS Steel Pte Ltd which was involved in the trading of ferrous scrap metal. Today, it is one of the largest metal recycling companies in Singapore in terms of volumes handled. The Group consists of five subsidiary
Slide 3: Group Structure
Group Structure • Metal recycling • Investment company • Trading of structural • Trading of ferrous & steel products non-ferrous scrap (re-bars, steel metals plates, wire rods, • Leasing of steel steel plates, etc) products • Trading of stainless (plates, sheet piles • Collection centre for steel &
Slide 4: Overview of Financial Performance
Overview of Financial Performance • HY2014 revenue grew 53.7% on higher revenue from trading and recycling business segments, and with contributions from the newly established entity in Malaysia • Margins continue to be pressured, with gross profit margins declining from 14.8% to 10.9% for HY2014 (1
Slide 5: 2Q 2014 and HY2014 Financial Highlights
2Q 2014 and HY2014 Financial Highlights (Three and six months ended 31 December 2013) 5
Slide 6: 2Q 2014 Financial Highlights
2Q 2014 Financial Highlights 2Q 2014 2Q 2013 % Change ($ million) ($ million) Revenue 39.6 22.7 +74.2% Gross Profit 4.8 3.9 +25.1% Gross Profit Margin (%) 12.2% 17.0% -4.8 ppts Other Income 2.1 2.3 -6.5% Profit before Tax 2.0 1.8 +10.2% Profit after Tax 1.5 1.4 +10.3% Profit after Tax 1.3 0.8 +68.2%
Slide 7: HY2014 Financial Highlights
HY2014 Financial Highlights HY2014 HY2013 % Change ($ million) ($ million) Revenue 63.7 41.4 +53.7% Gross Profit 7.0 6.1 +13.3% Gross Profit Margin (%) 10.9% 14.8% -3.9 ppts Other Operating Income 4.5 4.3 +4.1% Profit before Tax 2.3 2.6 -11.8% Profit after Tax 1.7 2.0 -14.3% Profit after Tax 1.4 1.2
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights 31 Dec 2013 30 Jun 2013 ($ million) ($ million) Current Assets 93.2 87.8 Current Liabilities 49.6 44.9 Total Assets 160.0 154.1 Total Liabilities 69.8 64.7 - Bank Borrowings 58.2 50.2 Total Equity 90.2 89.5 - Shareholders Equity 84.1 83.8 - Non-controlling Interests 6.1 5.7
Slide 9: Outlook & Strategy
Outlook & Strategy • Business outlook is expected to be slow and the excess stock situation will continue depressing steel prices • The Group’s margins continue to be squeezed on both selling prices and scrap buying prices • Escalating labour expenses will add to challenges in the local environment
Slide 10: Forward Looking Statements
Forward Looking Statements This presentation and pertaining discussions may contain statements that are forward looking concerning the business and future performance of Union Steel Holdings Limited and its subsidiaries. These statements are based on current conditions and information and involve as