QUARTERLY IR UPDATES 3 rd Quarter 2019 Financial Results & - - PowerPoint PPT Presentation

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QUARTERLY IR UPDATES 3 rd Quarter 2019 Financial Results & - - PowerPoint PPT Presentation

QUARTERLY IR UPDATES 3 rd Quarter 2019 Financial Results & Updates 24 th October 2019 1 Disclaimer This Presentation is not intended to form the basis of any investment decision with respect to Malaysia Marine and Heavy Engineering Holdings


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QUARTERLY IR UPDATES

3rd Quarter 2019 Financial Results & Updates

24th October 2019

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Disclaimer

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This Presentation is not intended to form the basis of any investment decision with respect to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). Neither this presentation nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. No representation or warranty, express or implied, is or will be made by MHB in relation to, and no responsibility or liability is or will be accepted by MHB as to the accuracy and completeness of, the Information made available, and any liability therefore is expressly disclaimed. This Presentation may contain “forward-looking statements”. Forward-looking statements by their nature involve known and unknown risks, uncertainties and other factors that are in many cases beyond MHB’s control. Although MHB believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to it, no assurances can be given that such expectations will prove to have been correct. Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only as of their dates, and MHB undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. This Presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized, disclosed referred or passed on to others at any time without the prior written consent of MHB. Except for the yard facilities in the photographs, none of the vessels/structures belong to MHB.

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Business Highlights

Projects Financials Shareholding Information Key Focus Areas

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1

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Key Highlights

FINANCIALS

  • Revenue of RM733.9 mil
  • Pre-tax loss of RM42.7 mil

HEAVY ENGINEERING UNIT (HEU) MILESTONES: Offshore

  • Sail away of Tembikai Non-Associated Gas (TNAG) development
  • Awarded an EPCIC of central processing platform (CPP) and wellhead platform (WHP) for the

Kasawari Gas Development project MARINE BUSINESS UNIT (MBU) MILESTONES:

  • Completed repair & maintenance of 59 vessels
  • Secured 72 jobs

9M 2019

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Business Highlights

Projects

Financials Shareholding Information Key Focus Areas

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Sail away in July 2019

Tembikai NAG Offshore Wellhead Facilities

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Progress is at 69.0% as of September 2019

Bokor Phase 3 Re-Development CPP

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Progress is at 62.6% as of September 2019

Pluto Water Handling Module

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Notable Marine Repair Projects delivered in Q3 2019 (1/2)

Vessel owner: BW Fleet Management AS Deadweight: 91,515 tonnage Job scope: Drydocking and Repairs Delivery date: 7 September 2019

LNG BW Pavilion Vanda LNG Alliance

Vessel owner: Gazocean SA Deadweight: 97,741 tonnage Job scope: Drydocking and Repairs Delivery date: 16 August 2019

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Notable Marine Repair Projects delivered in Q3 2019 (2/2)

Vessel owner: Teekay Shipping (Glasgow) Ltd. Deadweight: 77,213 tonnage Job scope: Drydocking and Repairs Delivery date: 14 September 2019

LNG Madrid Spirit

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Docking Essential Defect (DED) for KD GEMPITA

Notable MMHE EPIC Marine & Services Sdn Bhd (MEMS) Projects

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Progress is at 77.0% as of September 2019

Dry Dock 3 (DD3)

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Business Highlights Projects

Financials

Shareholding Information Key Focus Areas

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  • Revenue
  • Lower revenue from Marine segment
  • Operating (Loss)/Profit
  • Lower operating loss due to improved contribution from

Heavy Engineering segment 16

Financial Updates

Income Statement, Sequential Quarter

Income Statement (RM 'm) 3Q 2019 2Q 2019 Revenue Heavy Engineering Marine 254.3 152.8 101.5 276.4 151.9 124.5 Operating (Loss)/Profit Heavy Engineering Marine Others (4.9) (6.8) 2.5 (0.5) (8.6) (19.8) 8.6 2.6 Finance Cost 0.4 (0.2) Pretax Loss (4.4) (8.8) Taxation (0.3) (0.4) Net Loss (4.7) (9.2) LPS (0.3) sen (0.6) sen

Note : Due to rounding, numbers may not tally with the total

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Income Statement (RM 'm) 9M 2019 9M 2018 Revenue Heavy Engineering Marine 733.9 430.1 303.8 701.1 427.4 273.7 Operating (Loss)/Profit Heavy Engineering Marine Others (42.7) (50.4) 3.2 4.5 (97.0) (40.6) (48.8) (7.7) Finance Cost Share of Loss of JV

  • (0.8)

Pretax Loss (42.7) (97.8) Taxation (0.9) (0.5) Net Loss (43.6) (98.3) LPS (2.7) sen (6.1) sen

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  • Revenue
  • HEU – Higher revenue contributed by higher progress

from ongoing projects and new order intake

  • MBU – Higher revenue mainly due to higher revenue

from dry docking services on LNG carriers

  • Operating (Loss)/Profit
  • HEU – Higher operating loss mainly due to lower

contribution from post sail away projects

  • MBU – Recorded profit compared to loss due to higher

contribution from conversion work and dry docking services on LNG carriers

  • Share of results of JVs
  • There was no contribution from joint ventures during the

period under review

  • Pre-tax loss
  • Reduction in pre-tax loss due to improved performance

in the Marine segment

Note:

  • 1. Segmental Revenue and Operating Profit is post inter-segment eliminations
  • 2. Due to rounding, numbers may not tally with the total

Financial Updates

Income Statement, Year-on-Year

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  • Total assets of RM3.2bil
  • Higher Non-Current Assets – Increase in PPE
  • Higher Non-Current Liabilities – Mainly due to

disbursement of loan for the construction of Dry Dock No. 3

  • Higher Cash – Mainly due to lower payments

during the period

  • NTA per share of RM1.48

Note : Due to rounding, numbers may not tally with the total

Balance Sheet (RM 'm) Sep 2019 Dec 2018 Non-Current Assets 2,023.4 1,905.6 Inventories 4.4 5.6 Receivables 508.8 648.0 Cash 661.3 601.5 Others 9.6 20.5 Total Assets 3,207.6 3,181.2 Shareholders' Funds 2,364.6 2,407.1 Non-Controlling Interests 0.0 (0.3) Long Term Loan 142.3 48.4 Long Term Lease Liabilities 7.3

  • Payables

692.8 726.0 Short Term Lease Liabilities 0.5

  • Total Equity & Liabilities

3,207.6 3,181.2 NTA per share RM1.48 RM1.50

Financial Updates

Balance Sheet

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Backlog & Order Intake

652 182 1,145 144 2,224 500 1,000 1,500 2,000 2,500 Dec15 Dec16 Dec17 Dec18 Sep 19 1,023 629 1,273 785 2,740 500 1,000 1,500 2,000 2,500 3,000 3,500 Dec15 Dec16 Dec17 Dec18 Sep 19

RM (‘000) RM (‘000)

Note: New Order Intake excludes Marine Business segment

Backlog New Order Intake MHB Backlog as of 30 September 2019

Marine Business Unit 5.3% Heavy Engineering Unit 94.7%

RM2,739.7 mil

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Business Highlights Projects Financials

Shareholding Information

Key Focus Areas

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66.50% 2.40% 6.60% 8.50% 10.19% 5.81% MISC Foreign Investors Urusharta Jamaah Technip Other Malaysian Shareholders Others Lembaga Tabung Angkatan Tentera 2.25% 2.23% Amanah Trustees 1.90% 1.50% EPF 1.66% 1.60% Note: Others include the following: Jun-19 Sep-19 66.50% 2.35% 6.60% 8.50% 10.72% 5.33% Corporate Updates

Shareholding Information & Share Price

As of 30 Jun 2019 As of 30 Sep 2019 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 1/Jul/19 1/Aug/19 1/Sep/19

Share Price (RM)

24/07/2019

0.95

30-Sep-19

0.73

04/07/2019

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Business Highlights Projects Financials Shareholding Information

Key Focus Areas 5

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Key Focus Areas

  • HEU tenders worth ~ RM13.74 billion have been submitted as of September 2019
  • Strategy & Initiatives
  • Continue pursuing existing business of Marine & Heavy Engineering, seizing available

floaters conversion opportunities and expanding marine capacity through additional dry dock

  • Develop new business namely modular fabrication
  • Deployed

a number

  • f

in-house processes and explore strategic partnership and collaboration opportunities to promote competitive price offerings

  • Implement productivity improvement initiative to achieve operational excellence
  • Upskill manpower through capability development programs
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Thank You

MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD (178821-X)

INVESTOR RELATIONS Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur, Malaysia T : +603 2275 3792 F : +603 2273 8916 W : www.mhb.com.my

MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P)

(a wholly owned subsidiary of MHB) MMHE West, PLO 3, Jalan Pekeliling, P.O.Box 77, 81700 Pasir Gudang, Johor, Malaysia T : +607 268 2111 F : +607 278 4162