TAT HONG HOLDINGS LTD 1QFY2016 RESULTS 14 AUGUST 2015 1QF QFY2 - - PowerPoint PPT Presentation

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TAT HONG HOLDINGS LTD 1QFY2016 RESULTS 14 AUGUST 2015 1QF QFY2 - - PowerPoint PPT Presentation

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TAT HONG HOLDINGS LTD 1QFY2016 RESULTS 14 AUGUST 2015 1QF QFY2 Y2016 6 Res esul ults ts Fl Fleet eet Up Updat date Out Outlook ook and nd Prosp ospects ects 2 1QFY2016 Results Summary Declined 15.2% to S$139.3 million

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SLIDE 1

TAT HONG HOLDINGS LTD 1QFY2016 RESULTS

14 AUGUST 2015

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1QF QFY2 Y2016 6 Res esul ults ts Fl Fleet eet Up Updat date Out Outlook

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nd Prosp

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1QFY2016 Results Summary

 Declined 15.2% to S$139.3 million

 Lower revenue posted by all Divisions  Excluding the impact of a subsidiary that was divested in 2QFY2015 and the

depreciation of the AUD, Group revenue would have declined 7.1%

 Decreased 4.4% pts to 32.0%

 Lower GP margins across all Divisions with largest decline in the General Equipment

Rental Division

 Declined 45.3% to S$5.6 million

Due mainly to:

 Lower revenue and lower gross profit  Higher net forex losses of S$2.0 million due to weaker RMB affecting S$-denominated

loans and weaker US and MYR affecting trade receivables partially offset by gains from JYP-denominated trade payables

 Lower contribution by associates and JVs of S$1.2 million

Partially offset by :

 Higher other income of S$9.9 million primarily from gains from the disposal of fixed

assets as well as properties in Malaysia and Australia

 Lower operating cost of S$3.1 million from the disposal of a subsidiary and better cost

management

 Lower financing cost of S$0.7 million due to the reduction in borrowings

Comparisons are made against 1QFY2015 ended 30 June 2014

Revenue Gross Profit Margin Profit Before Tax

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1QFY2016 Results Summary

Comparisons are made against 1QFY2015 ended 30 June 2014

 Healthy balance sheet

Net gearing as at 30 June 20154: 0.78 times

Cash and cash equivalents: S$97.7 million

NTA and NAV per share: S$0.99 and S$1.02, respectively

EPS: 0.44 Singapore cents Balance Sheet

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PATMI

 Declined 53% to S$2.8 million

Due to decline in PBT partially offset by lower tax expenses of S$1.5 million

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S$’m 1QFY2015 1QFY2016 Change +/- (%) Revenue 164.2 139.3

  • 15.2

Gross Profit 59.8 44.6

  • 25.4

Gross Profit Margin (%) 36.4 32.0

  • 4.4 pts

PBT 10.3 5.6

  • 45.6

PATMI 6.0 2.8

  • 53.3

PATMI Margin (%) 3.7 2.0

  • 1.7 pts

Financial Highlights

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Financial Highlights

S$’m As at 31 Mar 2015 As at 30 Jun 2015

Fixed Assets (PP&E) 919.3 889.0 Inventories 186.5 176.0 Debtors (Current & Non-current) 204.7 228.0 Cash & Cash Equivalents 93.3 97.7 Shareholders’ Equity 650.8 642.7 NTA per share (S$) 1.00 0.99 NAV per share (S$) 1.03 1.02 Net gearing (times) 0.77 0.78

Disposal of properties , plant and equipment, depreciation, translation loss from weaker AUD and RMB partially offset by equipment purchases and reclassification from inventory to PPE Timing issue

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Reclassification to PPE and prudent inventory purchases Primarily due to reduction in currency translation reserve

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Revenue Trend

495.4 584.2 719.8 836.9 684.1 608.6 139.3 100 200 300 400 500 600 700 800 900 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1QFY2016

S$m

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Segmental Revenue Highlights

66.3 49.0 0.0 50.0 100.0 1QFY2015 1QFY2016

S$m

Revenue decreased 26% to S$49.0 million

  • 1. Crane Rental

 Singapore: Lack of contribution from a divested subsidiary partially offset by better barge rental income and project income  Australia: Completion of projects, lower activity levels post wet season, competition and depreciation of AUD against SGD  Malaysia: Completion of projects and increased down time due to increased inspections and maintenance prior to deployment to new projects  Thailand and Hong Kong: Completion of projects and delay in the commencement of pipeline projects Partially mitigated by better performance from:  Indonesia: Better contribution from new contracts

  • 26%

Comparison is made against 1QFY2015 ended 30 June 2014 8

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Segmental Revenue Highlights

24.5 23.3 10 20 30 1QFY2015 1QFY2016

S$m

  • 2. Tower Crane Rental

 Due to the completion of projects and timing of deployment to new projects

Revenue decreased 5% to S$23.3 million

Comparison is made against 1QFY2015 ended 30 June 2014

  • 5%

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Segmental Revenue Highlights

16.3 11.7 10 20 1QFY2015 1QFY2016

  • 28%

S$m

 Lower public spending, lack of major infrastructure projects and wet weather stand-downs in New South Wales  Overall weak market conditions and increased pricing pressures resulting in lower rental rates  Exacerbated by the depreciation of the AUD against the

  • SGD. Excluding the foreign exchange effect, revenue

decline would have been 19%

  • 3. General Equipment Rental

Revenue declined 28% to S$11.7 million

Comparison is made against 1QFY2015 ended 30 June 2014 10

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Segmental Revenue Highlights

57.1 55.3 40 80 1QFY2015 1QFY2016

  • 3%

S$m

  • 4. Distribution

Revenue decreased by 3% to S$55.3 million

 Indonesia: Continued decline in sales of excavators due to downsizing  Decline in sales of spare parts Partially offset by:  Better equipment sales in Hong Kong and Thailand  Slight improvement in equipment sales in Singapore as increased sales to overseas markets such as Japan and Middle East compensated for decline in sales locally due to weak demand and increased competition

Comparison is made against 1QFY2015 ended 30 June 2014 11

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Revenue by Business Activity

40% 35% 10% 15%

1QFY2015

Crane Rental Distribution General Equipment Rental Tower Crane Rental

35% 40% 8% 17%

1QFY2016

S$55.3m S$11.7m S$23.3m S$49.0m S$66.3m S$57.1m S$16.3m S$24.5m

S$164.2 million S$139.3 million

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Revenue by Region

19% 19% 47% 15%

1QFY2015

Singapore SE Asia & Others Australia China 20% 19% 44% 17%

1QFY2016

S$164.2million S$139.3 million

S$31.6m S$77.6m S$30.5m S$24.5m S$28.0m S$27.1m S$60.9m S$23.3m

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Gross Profit and Gross Profit Margin

20 40 60 80 1QFY2015 1QFY2016

GP & GP Margin S$m

GP (S$m) 59.8 44.6 GP Margin (%) 36.4 32.0

Gross profit fell 25% to S$44.6 million whilst gross profit margin (GPM) declined 4.4% pts to 32.0%

Lower GPM recorded across all divisions.  Crane Rental: GPM fell 2.1% pts to 48.3% due to decline in revenue as well as lower utilisation rate and subcontracted hires in Australia  Tower Crane Rental: GPM fell marginally by 1.2% pts to 26.1% as a result of lower utilisation  General Equipment Rental: GPM decreased by 9.4% pts to 42.4% due to lower rental rates and irrecoverable freight costs  Distribution: GPM declined 2.0% pts to 17.8% primarily due to the decline in sales of parts.

Comparison is made against 1QFY2015 ended 30 June 2014 14

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Gross Profit Margin Trend

56.1% 57.4% 59.8% 54.0% 53.0% 48.3% 49.3% 53.9% 48.8% 50.3% 47.3% 42.4% 31.1% 24.2% 30.7% 27.2% 25.8% 26.1% 19.4% 19.9% 17.3% 17.6% 15.9% 17.8% 35.7% 36.5% 37.6% 35.9% 34.8% 32.0% 0% 20% 40% 60% 80% FY2011 FY2012 FY2013 FY2014 FY2015 1QFY2016 Crane Rental General Equipment Rental Tower Crane Rental Distribution Overall

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1QF QFY2 Y2016 6 Res esul ults ts Fl Fleet eet Up Updat date Out Outlook

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Crawler/Mobile Crane Fleet

Size (Tonnes)

  • No. of Cranes

As at 30 June 2014

  • No. of Cranes

As at 30 June 2015 < 99 MT 443 403 100 – 199 MT 138 123 200 – 299 MT 81 82 > 300 MT 40 38 Total Units 702 646 Total Tonnage 81,265 77,695 Group Overall Utilisation Rate (based on tonnage) 61.4% 62.2%

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Crawler/Mobile Crane Utilisation Rate

559 565 556 590 668 682 676 664 677 687 695 683 702 653 653 647 646 60.4 67.9 69.6 71.0 74.0 72.5 71.0 68.1 64.9 68.2 63.3 64.9 61.4 63.9 62.6 57.0 62.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 100 200 300 400 500 600 700 800 No of Units Utilisation Rate

18 Units Utilisation Rate

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Tower Crane Fleet

Size (Tonne-Metres)

  • No. of Cranes

As at 30 June 2014

  • No. of Cranes

As at 30 June 2015 < 99 TM 218 198 100 – 199 TM 329 321 200 – 299 TM 304 299 > 300 TM 93 95 Others 9 23 Total Units 953 936 Total Tonne-Metres 186,510 189,558 Group Overall Utilisation Rate (based on tonne-metres) 79.0% 64.2%

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685 697 709 757 783 784 794 808 849 862 881 909 953 933 934 934 936 66.0 70.9 63.8 64.0 68.9 79.9 78.4 74.2 72.9 76.2 78.3 79.1 79.0 80.1 77.2 70.2 64.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 100 200 300 400 500 600 700 800 900 1000 No of Units Utilisation Rate

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Tower Crane Utilisation Rate

Units Utilisation Rate

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1QF QFY2 Y2016 6 Res esul ults ts Fl Fleet eet Up Updat date Out Outlook

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The weakness in ASEAN and Australia markets for the Crane Rental Division will continue to adversely affect the Division’s performance. The Division will be undertaking an exercise to reduce its existing fleet size and consequential operational restructuring. The General Equipment Rental Division is not expected to do well due to the slow recovery of the Australian construction sector. Weak demand in the region and competitive market conditions will continue to affect the Distribution Division’s performance. The Tower Crane Rental division is expected to grow steadily in FY2016 on the back of a strong fleet size, on-going projects and new opportunities in the building, infrastructure, transport and power generation sectors in the People’s Republic of China. With this, coupled with the fleet reduction exercise in the Crane Rental Division, the Group hopes to mitigate the impact of the challenging economic and sectoral outlooks for its key markets.

Outlook and Prospects

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THANK YOU

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Appendix – On-going Projects

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On-going Projects

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Projects in SE Asia and Hong Kong

SINGAPORE

 MRT Downtown Line  MRT Thomson Line  Jewel Project  Jurong Island Petrochemical Plant  Pasir Panjang Terminal Phase 4  SRC Cogen Project  Changi, Sengkang and Yishun Hospitals  HDB Projects

THAILAND

 Bangkok Mass Transit System projects  EPC (INPEX) Project  Mae Moh Power Plant  Bangkruai power plant

MALAYSIA

 Manjung 5 Fast Track Power Plant  Petronas RAPID Project  Wasco Pipe Coating  Re-gassification Terminal 2 (RGT-2)  MLNG Train 9 Project (Sarawak)  LNG Jetty Project (Sarawak)  SMDS Maintenance (Sarawak)

HONG KONG

 Central - Wanchai Bypass  XRL West Kowloon Terminal Station South Phase  Hong Kong-Macau-Zhuhai Bridge projects including link roads  Shatin-Central Link (MTR)

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Projects in China Projects in Australia AUSTRALIA  Gorgon LNG  Ichthys (INPEX) LNG Project  Wheatstone LNG Project  Mt Arthur Coal Mine  Roy Hill Iron Ore Project CHINA  Power Plants /Stations:

  • Dalian HongYanhe (Nuclear)
  • Fujian Ningde (Nuclear)
  • Guangdong Taishan (Nuclear)
  • Guangdong Yangjiang (Nuclear)
  • LeShan Jiajian (Nuclear)
  • Plus 12 other power plant/power

station projects across China  Infrastructure:

  • Shengyang Railway Station
  • Chongqing North Station
  • Ningbo South Station
  • Tianhe Airport T3
  • Hong Qiao Airport T1

Refurbishment

  • Beihai Heat Supply Centre
  • Wenqizhu Gang’ao Bridge

 Large Projects:

  • Nanjing Jiangsu Opera House
  • Tianjin 117
  • Tencent Beijing Headquarters
  • Shanghai Bamboo Garden

Business District

  • Shenzhen Hanjing Finance Centre
  • Xian Yanchang Petrol Research

Centre

  • Shanghai World Expo Museum
  • Guangzhou Nansha Wanda Plaza
  • Wuhan New World Centre
  • Jiu Jiang International Finance

Plaza

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OTHERS PNG:  Ok Tedi Mining Tabubil  Napa Napa Oil Refinery  Puma Energy Refinery

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On-going Projects