ECONPILE HOLDINGS BERHAD (Co. No. 101764-M) Macquarie ASEAN Conference 2019 August 2019 IR Adviser
Corporate Profile Operations Review Financial Highlights Growth Strategies CONTENTS Investment Merits Appendix 2
Corporate Profile 3
An established and integrated player in the domestic piling and foundation services industry… Established in 1987 Started with driven piling Accredited with ISO allows participation 9001: 2008, Econpile in tenders for Services complemented holds a projects with by workshop in Grade “7” license unlimited values. Bukit Beruntung, Rawang for machinery Advanced to bored piling repair and maintenance Corporate Structure Highly experienced management leads a 500-strong workforce Econpile Holdings Berhad (1017164-M) 100% 100% The Troika @ Jalan Binjai Econpile (M) Sdn Bhd Putrajaya Tropical Broadway Sdn Bhd Delivered more than Provision of foundation and piling administrative centre Property development services, including civil engineering and RM2 billion worth of related activities Port Dickson and projects Manjung power plants 100% Klang Valley Mass Notable projects Rapid Transit (MRT) Platinum Production Sdn Bhd Pavillion shopping Property investment, rental of machinery and sales of goods centre (Phases 1 and 2) BACKGROUND 4
Bored piles are the deep foundation of choice for high-rise buildings in urban areas… Bored piles are used mostly for large commercial and industrial developments and transport infrastructure projects. - Able to support very high load capacity - Low noise and vibration - Able to core into hard rock BORED PILING 5
Vast experience in bored piling in infrastructure and property projects… Completed bored piling works for Package V1 and Package V6 for Sungai Buloh-Kajang Mass Rapid (MRT) Line Installed large diameter bored piles with diameter up to 3.0m and length exceeding 100m for Oxley Towers KLCC BORED PILING 6
Top- down construction method enables faster construction progress… Superstructure For conventional bottom-up construction , excavation is firstly carried out through to designed depth. Floor slabs are constructed sequentially from lowest level of basement. Simultaneous construction of superstructure and basement Basement Top-down construction method is often used for large-scale projects with limited construction time in congested areas. Structure is constructed downwards from ground level. BASEMENT CONSTRUCTION 7
Recognized expertise in deep basement construction… Completed Piling and substructure works for Completed Substructure and basement works Elite Pavilion with 6-storey basement at Jalan for MAS Building with 6-storey basement at Bukit Bintang, Kuala Lumpur Jalan Sultan Ismail, Kuala Lumpur BASEMENT CONSTRUCTION 8
Renowned expertise in undertaking technically-challenging and large- scale piling and substructure works… The fleet consists of more than: 60 units of drilling rigs Econpile has one of the largest and most advanced arrays of piling equipment in Malaysia. Majority of rigs owned are 80 units of crawler cranes manufactured by Bauer Complemented by customised tools, accessories and vibratory hammers 40 units of vibro hammers We maintain a wide range of ancillary equipment too Crawler cranes with lifting capacity from 50T-150T Various excavators, some of which with long reach capability which are ideal for basement PLANT AND MACHINERY 9
Renowned expertise in undertaking technically-challenging and large- scale piling and substructure works… Contracted for Successfully Secured two Incorporation of Started Breached RM50m Awarded first The Troika, first listed on Main contracts above Econpile, offering in revenue contract for LRT deep basement Market of RM200m: principally complete as well as for Set up a full- project in Bursa Malaysia Maju KL (RM280m) involved in piling and Malaysian fledged workshop Kuala Lumpur that and Oxley Tower driven piling substructure Resources to undertake the involved the partial KLCC (RM208m) services Corporation repair and top-down Berhad (MRCB) maintenance of construction machinery in method house 1987 2005 2014 2016 2018 1994 2002 2004 2008 2019 1993 1998 2015 2017 Received first Engaged for Subcontracted Breached RM150m Clinched piling New contract Awarded ~RM640 mil bored piling bored piling for foundation mark in revenue and substructure wins exceed worth of contracts project for and piling works contracts above RM1b, includes including Phase 2 of Secured basement 2 blocks of substructure for Pavilion RM100m: single-largest Pavilion Damansara project for 20-storey works for Kuala Lumpur 8 Conlay contract of Heights, Gemas – JB Menara Prestige. condominium in Putrajaya Kuala Lumpur Pavilion Electric Double Installed 3m Petaling Jaya development (RM180m) and Damansara Tracking Project & diameter bored pile Menara FELCRA Heights Terra Putrajaya (RM120m) (RM570m) CORPORATE MILESTONES 10
Operations Review 11
Econpile continues to bag contracts despite sector headwinds … Secured RM643.7 million worth of contracts in FY2019 • Key wins: RM209.3 mil contract to undertake basement and substructure works for Pavilion Damansara Heights Phase 2 (2 nd Package): 20-month duration Pavilion Damansara Heights Previous contracts for same development: Mixed development featuring 10 corporate Phase 1: RM570 mil for piling and basement office towers, 5 residential towers and a retail mall substructure works Phase 2: RM122mil for bored piling RM18 mil for contiguous bored piling New Contract Wins (RM ‘mil) RM68.8 mil contract to undertake piling, pilecap and 1,193.2 basement works for Terra Putrajaya mixed development: 18-month duration 662.4 643.7 473.3 464.1 RM64.0 mil worth of works for Gemas-Johor Bahru Electrified Double Track Project: FY2015 FY2016 FY2017^ FY2018 FY2019 RM34.1 million for Section 3 V/A 3 Kluang RM16.8 million for Section 1 V/A 1 Segamat ^ Includes RM570 mil contract for Pavilion RM13.0 million for Section 3 V/A 3A Renggam Damansara Heights Phase 1; Group’s single- largest contract OPERATIONS REVIEW 12
Financial Highlights 13
9M19 bottomline affected by affected by costs over-run and impairment in 2Q19 … 3Q19 performance back on track on stronger project mix Group Revenue (RM ‘mil) & Gross Margin (%) Quarterly Revenue (RM 'mil) 23.9% 22.4% 18.7% 18.9% 18.1% 114.1 147.9 162.3 157.7 168.9 162.2 205.0 192.3 200.3 148.1 138.3 6.5% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 462.1 429.0 581.9 728.4 536.1 486.7 Quarterly PBT ( RM’mil ) & PBT Margin (%) 19.3% 19.7% 19.7% 18.1% 17.2% 18.7% 13.7% 13.9% 10.2% 16.2% FY2015 FY2016 FY2017 FY2018 9M18 9M19 Revenue Gross Margin -26.7% 22.0 29.1 32.0 28.5 29.1 30.4 28.2 26.8 20.4 22.4 EBITDA, PAT & Margins (RM ‘mil) -39.5 24.3% 23.6% 20.0% 18.9% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 13.8% 5.8% Quarterly PAT ( RM’mil ) & PAT Margin (%) 12.6% 14.6% 13.9% 12.0% 10.9% 15.7% 14.4% 14.5% 13.6% 13.3% 12.6% 14.0% 11.6% 10.1% 7.5% 0.5% -23.2% 46.6 67.5 80.8 87.1 67.6 16.4 21.4 22.1 20.9 21.2 22.7 23.7 19.5 15.0 21.7 2.3 FY2015 FY2016 FY2017 FY2018 9M18 9M19 -34.4 Depreciation Finance Cost (less finance income) Tax expenses PAT 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 EBITDA Margin PAT Margin FINANCIAL TRENDS 14
Topline affected by deferment in certain infrastructure projects … property related projects still form majority in 9M19 Revenue Segmentation 2% 7% 9% 24% 24% 25% Infrastructure and Others 98% 93% 91% Property 76% 76% 75% Development 2015 2016 2017 2018 9M18 9M19 Property Development 399.8 450.9 532.3 548.5 406.9 370.7 29.2 11.2 49.6 179.9 129.2 116.0 Infrastructure & Others Total Revenue 429.0 462.1 581.9 728.4 536.1 486.7 REVENUE SEGMENTATION 15
2Q19 costs over-runs and impairment affected 9M19 margins … 3Q19 property segment gross profit margin intact at 23.7% Group Gross Profit GP Margin: GP Margin: & Margin Property Development Infrastructure & Others 50.0% 21.5% 24.2% 40.0% 23.8% 21.0% 23.9% 20.3% 22.4% 18.8% 30.0% 18.7% 18.1% 22.8% 100 20.0% 6.5% 10.0% 10.0% 12.5% 12.2% 11.4% 7.3% 0.0% -10.0% -4.7% -20.0% 110.3 130.1 131.9 101.1 -30.0% 80.2 31.8 -40.0% 0 -50.0% FY2015 FY2016 FY2017 FY2018 9M18 9M19 FY2015 FY2016 FY2017 FY2018 9M18 9M19 FY2015 FY2016 FY2017 FY2018 9M18 9M19 FY2015 FY2016 FY2017 FY2018 9M18 9M19 Gross Profit by End-User Industries (RM ‘mil) % (RM ‘mil) % (RM ‘mil) % (RM ‘mil) % (RM ‘mil) % (RM ‘mil) % Property Development 77.8 97% 108.9 99% 126.5 97% 111.5 84% 85.3 84% 37.2 117% Infrastructure & Others 2.3 3% 1.4 1% 3.6 3% 20.5 16% 15.8 16% -5.4 -17% Total 80.1 100% 110.3 100% 130.1 100% 131.9 100% 101.1 100% 31.8 100% GROSS PROFIT SEGMENTATION 16
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