Union Steel Holdings Limited · SGX:ZB9
Union Steel — Investor Presentation (September 2008)
27 slides from Union Steel's investor presentation, September 2008
Slide 1: Union Steel Holdings Limited Corporate Presentation
Union Steel Holdings Limited Company Registration Number: 200410181W Corporate Presentation 1 September 2008
Slide 2: To Be Part Of The Environment
To Be Part Of The Environment Each and everyone of us is a part of the world we live in. It is up to us to protect the environment. Investing in advanced metal recycling equipment and machinery will help maximise the recycling of scrap metal, thereby saving precious natural resources.
Slide 3: Contents
CONTENTS • Business Overview • Competitive Strengths • Financial Review • Future Plans & Outlook • Questions & Answers
Slide 4: About Union Steel
ABOUT UNION STEEL We are principally engaged in the recycling of ferrous and non-ferrous scrap metals, and are one of the largest metals recyclers in Singapore in terms of volume of metals recycled. We are a one-stop supply centre for recycled metals, steel products and other services. 4
Slide 5: Business Overview
BUSINESS OVERVIEW wr it OE el por
Slide 6: Core Businesses
CORE BUSINESSES • RECYCLING of ferrous and non-ferrous scrap metals (73% of FY2008 revenue) • TRADING of steel products (25.1% of FY2008 revenue) and • Provision of other SERVICES: (1.9% of FY2008 revenue) – Waste collection and management – Demolition works – Rental of steel plates – Others 6
Slide 7: Group Structure
GROUP STRUCTURE Union Steel Holdings Limited Yew Lee Lim Asia Union Steel YLS Steel Steel Pte Seng Metal Pte Ltd Pte Ltd Ltd Pte Ltd 100% 100% 65% 100% Recycling of non- Recycling of scrap Demolition of Trading of ferrous metals metals, trading of buildings and scrap metals and stainless steel produ
Slide 8: Corporate Milestones
CORPORATE MILESTONES 1984 Started as YLS Steel to trade in scrap metals YLS Steel was ranked one of the top SMEs in the annual 1999 Singapore 500 SME awards 2000 YLS Steel was appointed by the Land Transport Authority of Singapore to provide scrapping services for deregistered cars YLS Steel was lic
Slide 9: Corporate Milestones
CORPORATE MILESTONES 2003 Union Steel was awarded the “Enterprise 50 Award” and, together with YLS Steel, obtained ISO9001:2000 status 2004 1. Union Steel was ranked one of the top SMEs in the annual Singapore 500 SME Awards 2. Union Steel was awarded the “Fastest Growing 50 Certification” 3. YLS St
Slide 10: Corporate Milestones
CORPORATE MILESTONES Wholly owned subsidiary Union Steel Pte Ltd entered into a 2006 Sales & Purchase Agreement with Nikko Shoji Company Limited, a subsidiary of Nippon Mining Inc to supply electronic waste to the latter 1. Signed sale and leaseback agreement with Mapletree Logistics Trust for 4 ind
Slide 11: Our Recycling Operations
OUR RECYCLING OPERATIONS Procurement and Collection Purchase scrap metal from local and overseas sources Sorting and Segregation Separated according to type and grade Ferrous Scrap Metals Non-Ferrous Scrap Metals Shearing and Cutting Baling and Briquetting Cut the scrap metals to obtain Compress scr
Slide 12: Our Recycling Operations
OUR RECYCLING OPERATIONS Procurement and Collection Sorting and Segregation 12
Slide 13: Our Recycling Operations
OUR RECYCLING OPERATIONS Shearing and Cutting Baling and Briquetting 13
Slide 14: Our Recycling Operations
OUR RECYCLING OPERATIONS Quality Control, Packing and Storage 14
Slide 15: Competitive Strengths
COMPETITIVE STRENGTHS 15
Slide 16: Competitive Strengths
COMPETITIVE STRENGTHS • Experienced management team (over 20 years of experience), and our dedication to operational excellence • One Stop Supplier of a Wide range of processed metals • Vertically-integrated business – from direct sourcing (eg. collection and demolition work) to processing and tradi
Slide 17: Financial Review
ee on ee % Crm SS ee Sis FINANCIAL REVIEW
Slide 18: Group Revenue
GROUP REVENUE Major revenue contributor is the recycling business; Drop in revenue as increase in revenue from recycling of ferrous metal is less than fall in recycling of non-ferrous metal. S$m 284.8 300.0 250.0 220.8 200.0 150.0 113.0 96.9 98.5 76.1 100.0 50.4 11.8 20.7 50.0 13.0 2.3 2.6 5.7 2.1 2
Slide 19: Revenue by Markets
REVENUE BY MARKETS Strong revenue contribution from Singapore and PRC. 19
Slide 20: Gross Profit Margin
GROSS PROFIT MARGIN Gross profit margin for FY2008 increased by 67% compared to FY2007 % 20 17.6 18.3 13.2 15 10.4 10 6.5 5 0 FY2004 FY2005 FY2006 FY2007 FY2008 20
Slide 21: Group Net Profit
GROUP NET PROFIT Net profit increased by 212.2% to reach S$25.1million S$ 'million 30 25.1 25 20 15 9.5 9.6 8.05 10 6.3 5 0 FY2004 FY2005 FY2006 FY2007 FY2008 21
Slide 22: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS FY2007 FY2008 (S$ ‘000) (S$ ‘000) Cash & Cash 20,163 28,775 Equivalent Cash Used in (5,278) (10,494) Operating Activities Current Ratio 1.55 1.66 Inventory Turnover 51 100 Days Receivables Turnover 23 32 Days Payable Turnover Days 18 20 22
Slide 23: Key Financial Ratio
KEY FINANCIAL RATIO FY2007 FY2008 Gearing Ratio 1.08x 0.79x ROE 17.1% 36.8% ROA 6.7% 15.7% 23
Slide 24: Key Financial Ratio
KEY FINANCIAL RATIO FY2007 FY2008 EPS* 2.32cts 7.24cts PE Ratio 8.19x 2.62x NAV/ Share* 13.60 19.68 * Based on a share capital of 347,174,250 ordinary shares and a share capital of 347,105,250 of ordinary shares for financial period ended 30 June 2008 and 30 June 2007 respectively. 24
Slide 25: Future Plans & Outlook
Future Plans & Outlook 25
Slide 26: Future Plans & Outlook
FUTURE PLANS & OUTLOOK • Robust growth in FY2008 due to strong demand in recycled steel and metal • Growth in FY2009 expected to be moderate due to volatility in metal prices • Continue to capture benefits of business integration • Expand sources of scrap metals • Actively seek merger & acquisition
Slide 27: Question & Answer
UNION STEEL HOLDINGS LIMITED RHAR BMA He A QUESTION & ANSWER 27
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