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 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. 2
1 Business Highlights Projects Financials Shareholding Information Key Focus Areas 3
Key Highlights 9M 2019 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 5
Business Highlights 2 Projects Financials Shareholding Information Key Focus Areas 6
Sail away in July 2019 Tembikai NAG Offshore Wellhead Facilities 7
Progress is at 69.0% as of September 2019 Bokor Phase 3 Re-Development CPP 8
Progress is at 62.6% as of September 2019 Pluto Water Handling Module 9
Notable Marine Repair Projects delivered in Q3 2019 (1/2) LNG Alliance LNG BW Pavilion Vanda Vessel owner: BW Fleet Management AS Vessel owner: Gazocean SA Deadweight: 91,515 tonnage Deadweight: 97,741 tonnage Job scope: Drydocking and Repairs Job scope: Drydocking and Repairs Delivery date: 16 August 2019 Delivery date: 7 September 2019 11
Notable Marine Repair Projects delivered in Q3 2019 (2/2) LNG Madrid Spirit Vessel owner: Teekay Shipping (Glasgow) Ltd. Deadweight: 77,213 tonnage Job scope: Drydocking and Repairs Delivery date: 14 September 2019 12
Docking Essential Defect (DED) for KD GEMPITA Notable MMHE EPIC Marine & Services Sdn Bhd (MEMS) Projects 13
Progress is at 77.0% as of September 2019 Dry Dock 3 (DD3) 14
Business Highlights Projects Financials 3 Shareholding Information Key Focus Areas 15
Financial Updates Income Statement, Sequential Quarter Income Statement (RM 'm) 3Q 2019 2Q 2019 Revenue 254.3 276.4 Heavy Engineering 152.8 151.9 Marine 101.5 124.5 • Revenue • Lower revenue from Marine segment Operating (Loss)/Profit (4.9) (8.6) Heavy Engineering (6.8) (19.8) Marine 2.5 8.6 Others (0.5) 2.6 • Operating (Loss)/Profit • Lower operating loss due to improved contribution from Finance Cost 0.4 (0.2) Heavy Engineering segment 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 16
Financial Updates Income Statement, Year-on-Year Income Statement (RM 'm) 9M 2019 9M 2018 • Revenue Revenue 733.9 701.1 Heavy Engineering • HEU – Higher revenue contributed by higher progress 430.1 427.4 Marine 303.8 273.7 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 (42.7) (97.0) Heavy Engineering (50.4) (40.6) • Operating (Loss)/Profit Marine 3.2 (48.8) • HEU – Higher operating loss mainly due to lower Others 4.5 (7.7) contribution from post sail away projects Finance Cost • MBU – Recorded profit compared to loss due to higher contribution from conversion work and dry docking Share of Loss of JV - (0.8) services on LNG carriers Pretax Loss (42.7) (97.8) • Share of results of JVs • There was no contribution from joint ventures during the Taxation (0.9) (0.5) period under review Net Loss (43.6) (98.3) • Pre-tax loss • Reduction in pre-tax loss due to improved performance LPS (2.7) sen (6.1) sen 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 17
Financial Updates Balance Sheet Balance Sheet (RM 'm) Sep 2019 Dec 2018 Non-Current Assets 2,023.4 1,905.6 Inventories 4.4 5.6 • Total assets of RM3.2bil Receivables 508.8 648.0 Cash 661.3 601.5 Higher Non-Current Assets – Increase in PPE Others 9.6 20.5 Higher Non-Current Liabilities – Mainly due to Total Assets 3,207.6 3,181.2 disbursement of loan for the construction of Dry Dock No. 3 Shareholders' Funds 2,364.6 2,407.1 Higher Cash – Mainly due to lower payments Non-Controlling Interests 0.0 (0.3) during the period Long Term Loan 142.3 48.4 Long Term Lease Liabilities 7.3 - • NTA per share of RM1.48 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 Note : Due to rounding, numbers may not tally with the total 18
Backlog & Order Intake Backlog RM (‘000) 3,500 MHB Backlog as of 3,000 30 September 2019 2,500 2,000 1,500 Heavy Engineering 2,740 Unit 1,000 94.7% 1,273 500 1,023 785 629 0 Dec15 Dec16 Dec17 Dec18 Sep 19 New Order Intake RM2,739.7 mil RM (‘000) 2,500 2,000 1,500 2,224 1,000 Marine Business 1,145 500 652 Unit 182 144 5.3% 0 Dec15 Dec16 Dec17 Dec18 Sep 19 Note: New Order Intake excludes Marine Business segment 20
Business Highlights Projects Financials 4 Shareholding Information Key Focus Areas 21
Corporate Updates Shareholding Information & Share Price Share Price (RM) 5.33% 2.00 10.72% 1.80 8.50% 1.60 As of 30 Sep 2019 1.40 6.60% 0.73 2.35% 1.20 5.81% 66.50% 04/07/2019 10.19% 1.00 0.80 8.50% As of 0.60 30 Jun 2019 6.60% 0.95 MISC 0.40 24/07/2019 2.40% Foreign Investors 66.50% 0.20 Urusharta Jamaah Technip 0.00 Other Malaysian Shareholders 1/Jul/19 1/Aug/19 1/Sep/19 30-Sep-19 Others Note: Others include the following: Sep-19 Jun-19 Lembaga Tabung Angkatan Tentera 2.25% 2.23% Amanah Trustees 1.90% 1.50% EPF 1.66% 1.60% 22
Business Highlights Projects Financials Shareholding Information Key Focus Areas 5 23
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 of 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 24
Thank You MALAYSIA MARINE AND HEAVY ENGINEERING MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P) HOLDINGS BERHAD (178821-X) (a wholly owned subsidiary of MHB ) INVESTOR RELATIONS Level 31, Menara Dayabumi, MMHE West, PLO 3, Jalan Sultan Hishamuddin, Jalan Pekeliling, P.O.Box 77, 50050 Kuala Lumpur, Malaysia 81700 Pasir Gudang, Johor, Malaysia T : +603 2275 3792 T : +607 268 2111 F : +603 2273 8916 F : +607 278 4162 W : www.mhb.com.my
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