YONGNAM GROUP

Established in 1971, providing mechanical and civil engineering services in local market.Listed on the SGX-ST on 11 October 1999Today, Yongnam has grown to become a multi-disciplinary engineering and construction group focusing on: Structural Steelwork Specialist Civil Engineering Mechanical EngineeringOne of the largest steel fabrication facility in South East Asia –nearest competitor 1/5 size of YongnamUndertaken projects in the Asia Pacific region including Singapore, Malaysia, Brunei, Philippines, Thailand, Japan, Korea, Hong Kong, Pakistan and India.

Brief History

YONGNAM GROUP

Organization ChartYONGNAM BOARD

OF DIRECTOR

SEOW SOON YONGCHIEF EXECUTIVE

OFFICER

Finance & CorporateServices Division

CHIA SIN CHENGFinance & Executive Director

Engineering Division

Engineering Director(T B A)

Production Division

SEOW SOON HOCKProduction Director

Project ManagementDivision

C. HARENDRANProject Director

Support ServicesDivision

SIAU SUN KINGExecutive Director

Overseas Division

TAN TIN NAMAdvisor

Malaysia

Thailand

Hong Kong

Dubai

YONGNAM GROUP

3 Core Business Activities

1. Structural Steelworks

2. Specialist Civil Engineering

3. Mechanical Engineering

YONGNAM GROUP

1. Structural Steelworks

YONGNAM GROUP

1. Structural Steelworks

Second Bangkok Int’l Airport Expo – MRT Station

YONGNAM GROUP

1. Structural Steelworks

Fusionpolis

cont’d…

YONGNAM GROUP

1. Structural Steelworks

cont’d…

National Library

YONGNAM GROUP

1. Structural Steelworks

One Raffles Quay

cont’d…

YONGNAM GROUP

1. Structural Steelworks

Changi Airport Terminal 3

cont’d…

YONGNAM GROUP

1. Structural Steelworks

Size of Fabrication FacilitiesJust-in-time deliveryTrack Record – Good relationship with international main

contractors– Delivery on time and with quality

Few Competitors for S1 Classification

Competitive advantage

YONGNAM GROUP

2. Specialist Civil Engineering

YONGNAM GROUP

2. Specialist Civil Engineering

KPE – C421 Strutting Works MRT Strutting Works

YONGNAM GROUP

2. Specialist Civil Engineering

cont’d…

YONGNAM GROUPcont’d…

YONGNAM GROUP

2. Specialist Civil Engineering

Proven Track RecordMore Stringent Government RequirementsSize of Strutting Assets – approx. 58k TonsLow Cost Buy Back Option of Strutts Assets –approx 20k TonsHigh Cost of Replacement of Strutts

Competitive advantage

YONGNAM GROUP

3. Mechanical Engineering

YONGNAM GROUP

3. Mechanical Engineering

Tanjung Bin Power Plant Pulau Seraya Power Plant

YONGNAM GROUP

FacilitiesSINGAPORE:-Total Land Area : Approximately 76,000 m²Workshop Covered Area : 20,250m²Capacity (Normal Steel Structure): 3000 Tons per monthAverage Utilization: 2500 Tons per month

MALAYSIA (Pontian):-Total Land Area: Approximately 8070m²Workshop covered area: 3,000m2

Capacity (Normal Steel Structure): 500 Tons per monthAverage Utilization: 200 Tons per month

Total Staff Strength: approx.1050 (excluding sub-contractors)

cont’d…

YONGNAM GROUP

Facilities

cont’d…

Workshop

Workshop

Storage

Main Office

YONGNAM GROUP

Key Events

Section 210 Scheme of Arrangement in 2003/2004Legal Suit - Springleaf TowerFull-scale Load Test on Proprietary Modular Strutting System

YONGNAM GROUP

Some Completed Major Projects

National LibraryOne Raffles QuaySecond Bangkok International AirportOcean TowerKL International AirportSingapore Post CentreCentral ExpresswayNorth East MRT LinePulau Seraya Power StationSuntec CityChangi Airport Terminal OneCapital Tower Aircraft Hanger (Brunei)

YONGNAM GROUP

Ongoing Major Projects

Kallang Paya Lebar ExpresswayCircle LineFusionpolisAlexandra BridgeDerrick Fabrication Sitronic Wafer PlantDubai Metro

YONGNAM GROUP

2007 $400m

2008 $735m

Major Potential Projects

Structural Steelworks

Est. contract Value

2007 $60m

2008 $120m

2009 $90m

Specialist Civil Engineering

YONGNAM GROUP

Specialist Civil EngineeringFuchi Company“ J “ Steel

Structural Steel (S1 Classification)TTJ Design & Engineering Pte ltdMCC GroupZamil Steel Buildings Vietnam Co LtdWilliam Hare Pte LtdVictor Buyck Steel Construction Sdn Bhd

Competitors

YONGNAM GROUP

Takenaka Corporation Taisei CorporationObayashi CorporationPenta OceanShimizu CorporationDraggage SingaporeSamsung CorporationSsangyong Engineering & Construction Co LtdHyundai Engineering & Construction LtdAker KvaernerSembawang Engineering & Construction LtdWoh Hup

Customers – reputable main contractors

YONGNAM GROUP

Financials

YONGNAM GROUP

Revenue ($’m)

65.3 63.6

81.4

150.4

0

20

40

60

80

100

120

140

160

FY2003 FY2004 FY2005 FY2006

YONGNAM GROUP

$37.4m

FY 2006 FY 2005

Structural SteelworksSpecialist Civil Engineering

Mechanical Engineering

45.9%

$6.5m8%

$37.5m

46.1%

$63.0m

41.8%

$69.3m46.1%

$18.1m12.1%

Revenue ($’m)

YONGNAM GROUP

Gross Profit ($’m)

4

15.5 15.7

22.5

0

5

10

15

20

25

FY2003 FY2004 FY2005 FY2006

YONGNAM GROUP

Net Profit/Loss($'m)

-14

0.5 0.2

5.3

-15

-10

-5

0

5

10

FY2003* FY2004* FY2005* FY2006

* Excluding exceptional loss $1.5m(FY2003); gains $6.7m(FY2004); $0.4m(FY2005)

YONGNAM GROUP

Order Book ($’m)

6987

130147

181

020406080

100120140160180200

FY2003 FY2004 FY2005 FY2006 Mar-07

YONGNAM GROUP

Shareholders’ Funds/Borrowings ($’m)

FY2003 FY2004 FY2005 FY2006S/Funds (13.8) 1.4 1.8 7.4

Borrowings 82.0 67.4 79.3 78.9

YONGNAM GROUP

Total borrowing $78.9m

Shareholders’ Fund: At 1 January 2007 $7.4mPlacement in January 2007 $19.0mPlacement in May 2007 $38.4mWarrants converted to Shares $6.1mTotal $70.9m

Gearing

YONGNAM GROUP

Q & A