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E n g i n e e r e d f o r G r o w t h
4QFYEMarch 2011 Financial Results & Updates6 May 2011
ANALYST BRIEFING
Disclaimer
2
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.
Analyst Briefing – 4QFYEMarch 2011
3Analyst Briefing – 4QFYEMarch 2011
Topic
1 Operational Review
2 4Q & FYEMarch 2011 Results
3 New Contract, FPSO Cendor
4 Perspective
5 Q&A
Key Achievements FYEMarch 2011
Engineering & Construction
• Completed projects
• Malaysia
• Tangga Barat Topside
• BP Angola Turret
• Turkmenistan
• Gravity Base Structure
• Magtymguly Collection Riser-A
Engineering & Construction
• Ongoing projects
• Malaysia
• Gumusut-Kakap hull blocks are integrated
• Kinabalu Topside with profit recognition
• Turkmenistan
• Onshore Gas Terminal near completion
4Analyst Briefing – 4QFYEMarch 2011
Key Achievements FYEMarch 2011
Marine Repair & Conversion
• Undertaken 94 projects
• 55% of vessels repaired from 3rd party
• 54% LNG, LPG, energy vessels
• Secured FPSO Cendor project
Financial Highlights
• Net profit of RM451 million
• Cash of RM1.4 billion
• Orderbook of RM3.1 billion
• Proposed dividend of 5 sen
5Analyst Briefing – 4QFYEMarch 2011
6
Topic
1 Operational Review
2 4Q & FYEMarch 2011 Results
3 New Contract, FPSO Cendor
4 Perspective
5 Q&A
Analyst Briefing – 4QFYEMarch 2011
Tangga Barat Topside Completed in September 2010 for Petronas Carigali
7Analyst Briefing – 4QFYEMarch 2011
BP Angola External Turret Completed in November 2010 for Sofec Inc
8Analyst Briefing – 4QFYEMarch 2011
Turkmenistan Gravity Base Structure load-out and sailed away in January 2011
9Analyst Briefing – 4QFYEMarch 2011source : www.ale-heavylift.com
Turkmenistan Magtymguly Collection Riser-A sailed away after it was completed
10Analyst Briefing – 4QFYEMarch 2011
Gumusut-Kakap FPS Successful integration of the hull blocks in March 2011
11Analyst Briefing – 4QFYEMarch 2011
Gumusut-Kakap FPS Hull of the FPS. Scheduled completion by 2QCY2012
12Analyst Briefing – 4QFYEMarch 2011
Gumusut-Kakap FPS Topside of the FPS. Scheduled completion by 2QCY2012
13Analyst Briefing – 4QFYEMarch 2011
Seri Bijaksana LNG carrier. Owned by MISC Berhad. Dwt 89,953
14Analyst Briefing – 4QFYEMarch 2011
Seri Bijaksana LNG carrier. Owned by MISC Berhad. Dwt 89,953
15Analyst Briefing – 4QFYEMarch 2011
NASA Unity ULCC. Owned by Bernhard Schulte Shipmanagement. Dwt 269,605
16Analyst Briefing – 4QFYEMarch 2011
Kim Jacob Crude oil tanker. Owned by Ernst Jacob GMBH & Co. KG. Dwt 159,211
17Analyst Briefing – 4QFYEMarch 2011
18Analyst Briefing – 4QFYEMarch 2011
Topic
1 Operational Review
2 4Q & FYEMarch 2011 Results
3 New Contract, FPSO Cendor
4 Perspective
5 Q&A
Income Statement, 3-Month 4QFYEMarch 2011
Revenue, -30% QoQ
• Increased vessels repaired
• Turkmenistan’s project novated on Jan 1st
EBIT, -19% QoQ
• MRC, provided for long outstanding debt
• No EBIT from Turkmenistan’s project
EBIT %, improved to 9.8%
• MRC margins reflected provision
• Gumusut-Kakap and Kinabalu in 4QFY11
19
46
1,296 1,316
39
885 923
MRC E&C 3QFY11 MRC E&C 4QFY11
Revenue RM million
2
105 112
-14
98 91
MRC E&C 3QFY11 MRC E&C 4QFY11
EBIT RM million
5.1%8.3% 8.5%
-36.7%
11.1% 9.8%
MRC E&C 3QFY11 MRC E&C 4QFY11
EBIT Margin %
Analyst Briefing – 4QFYEMarch 2011
Income Statement, 3-Month 4QFYEMarch 2011
Pretax profit, +1% QoQ
• Share of profit of jointly controlled entities
(JCE), mainly MMHE-TPGM
Net profit, -4% QoQ
• Marginally lower tax credit from Investment
Tax Allowance (ITA) in 4QFY11
Ratios
• ROE 22.4%
• ROA 45.1% on fixed assets
20
0 1
113
024
114
Fin.Cost JCE 3QFY11 Fin.Cost JCE 4QFY11
PBT RM million
200
134
140
129
Tax MI 3QFY11 Tax MI 4QFY11
Net Profit RM million
Analyst Briefing – 4QFYEMarch 2011
Income Statement, 12-Month FYEMarch 2011
Revenue, -28% YoY
• Novated Turkmenistan’s project
• Delivered Tangga Barat and BP Angola
EBIT, +5% YoY
• No FPSO conversion at MRC
• Kinabalu reached major milestone and
Turkmenistan contributed positively
EBIT %, improved to 9.0%
• E&C margins reflected Gumusut-Kakap and
Kinabalu Topside projects
21
540
5,6046,147
277
4,157 4,435
MRC E&C FY10 MRC E&C FY11
Revenue RM million
100
286
381
49
316400
MRC E&C FY10 MRC E&C FY11
EBIT RM million
18.5%
5.1% 6.2%
17.5%
7.6% 9.0%
MRC E&C FY10 MRC E&C FY11
EBIT Margin %
Analyst Briefing – 4QFYEMarch 2011
Income Statement, 12-Month FYEMarch 2011
Pretax profit, +12% YoY
• Share of profit of jointly controlled entities
(JCE), mainly from MMHE-TPGM
Net profit, +61% YoY
• Tax credit from Investment Tax Allowance
(ITA) on Yard Optimisation project
Ratios
• ROE 19.6%
• ROA 39.5% on fixed assets
22
-3
0
377
-1
25
424
Fin.Cost JCE FY10 Fin.Cost JCE FY11
PBT RM million
-93
5
279
26 0
451
Tax MI FY10 Tax MI FY11
Net Profit RM million
Analyst Briefing – 4QFYEMarch 2011
Balance Sheet
Strong balance sheet
• Fixed assets +14% to RM1.1bn
• Cash +89% to RM1.4bn
• Shareholders’ funds +92% after IPO
• No borrowings
23
Cash 1,448.1
Fixed Assets 1,142.1
Inventories 30.6
Trade Receivables
2,304.0
Mar 2011
RM4,927.3m
Shareholders Funds 2,298.4
Others 94.0
Trade Payables 2,534.9
Mar 2011
RM4,927.3m
Total Assets
RM million
Total Liabilities
RM million
Analyst Briefing – 4QFYEMarch 2011
Order Book
Orderbook consist mostly of
• FPSO Cendor
• Gumusut-Kakap FPS
• Turkmenistan Block 1 Phase 1
• Kinabalu Topside
Orderbook expected to increase
24
MMHE has transferred the EPCIC contract for the Turkmenistan Block
1, Phase 1 gas development project to MMHE-TPGM by novation with
effect from 1st January 2011. Order book reflects MMHE’s 60% interest
*Analyst Briefing – 4QFYEMarch 2011
Gumusut Kakap 716.5
Kinabalu 452.7
Others1,011.2
Turkmenistan 919.0
0
Mar 2011
RM3,099.4m
Order Book RM million
*
Foreign Investors 14.05%
Other Malaysian
Shareholders 3.75%
EPF 2.42%
PNB & PNB Unit Trust
Funds 5.28%
Technip SA 8.00%
Shareholding Structure As At 31 March 2011
25
As At
Dec 2010
Foreign Investors 14.62%
Other Malaysian
Shareholders 2.42%
EPF 4.00%
PNB & PNB Unit Trust
Funds 4.46%
Technip SA 8.00%
As At
Mar 2011
7
8
9
10
11
12Market Capitalisation RM billion
Analyst Briefing – 4QFYEMarch 2011
Yard Optimisation Programme
YO Programme at Pasir Gudang
• To increase yard efficiency and to expand
projects undertaken. Completed
• West Finger pier
• 40k MT skid track & bulkhead
• Current and future
• 25k MT skid track & bulkhead
• Infrastructure work at Idemitsu land
Capital expenditure on YO
• Total YO Programme planned investment of
RM2.7bn
After YO Programme
• Facilities for complex deepwater structures
• LNG and energy vessels repair
26
0
200
400
600
09 10 11 12 13
Capex Budget RM million
High Level
Low Level
Analyst Briefing – 4QFYEMarch 2011
27Analyst Briefing – 4QFYEMarch 2011
Topic
1 Operational Review
2 4Q & FYEMarch 2011 Results
3 New Contract, FPSO Cendor
4 Perspective
5 Q&A
FPSO Cendor
28Analyst Briefing – 4QFYEMarch 2011
FPSO Typical Topsides Schematic Flow Path
29source : SBM Offshore, FPSO Topsides Analyst Briefing – 4QFYEMarch 2011
30Analyst Briefing – 4QFYEMarch 2011
Topic
1 Operational Review
2 4Q & FYEMarch 2011 Results
3 New Contract, FPSO Cendor
4 Perspective
5 Q&A
Delivering Performance
Commitment to excellence in Safety and
Quality
To strengthen and improve execution
capabilities
• Project/contract management processes
and procedures
• Procurement efficiency
• Level of sub-contractings
To move toward an organization that
supports our strategy, being
• Focused
• Empowered
• Accountable
31Analyst Briefing – 4QFYEMarch 2011
Delivering Performance
Financial performance
• Behind best-in-class
Monitor our risk profile, for
• Better financial performance
• Improved risk management
To develop high performance human
resources
• Retain and further develop a company
culture
• Create a learning organization
• Review performance incentives
32Analyst Briefing – 4QFYEMarch 2011
Strive To Be More Capability Driven
Engineering – E
• Start with the project earlier
• Better project management
• Avenue for organic growth
• Support, focus on core activity
Facilities – P, C
• Fabricate complex, heavy structures
• Execute complete Marine Conversion
33
Engineering Procurement Construction Installation Commissioning
Current Level
Of Activities
Strategic
Aspiration
Yard Space
Requirements
Legend
Full / Active Involvement,
Core Business Activity
Some Level Of Involvement,
In The Projects
Started To Be Involved,
In Certain Projects
Analyst Briefing – 4QFYEMarch 2011
Developing Capabilities
Strategic focus
• Capability/expertise acquisition thru JVs
Technip
• Training collaboration
• JV Co for collaboration
• Offshore production facilities
• Floating structures/platforms
Samsung Heavy Industries
• LNG carrier repair/refurbishment
ATB Riva Calzoni
• Process equipment
34
World Class Partners Description
A world leader in project
management, engineering and
construction for the oil and gas
industry. Integrated capabilities in
underwater infrastructures,
offshore facilities and large
processing units/plants on land
Specializes in building high value
added and special purpose
vessels of world-class standards.
A global market leader in building
LNG vessels and drillships. Also
setting technological leadership
in LNG FPSO/FSRU
More than 100 years in design,
manufacturing and installation of
mechanical equipments for
industrial applications such as oil
and petrochemical industries,
hydroelectric project plants and
thermoelectric power generation
Analyst Briefing – 4QFYEMarch 2011
Supporting PETRONAS At The Frontier
MHB’s aim
• Leading heavy engineering and marine
services provider
• Support PETRONAS
• Broaden capabilities
• More competitive
Focus on projects
• Technically demanding
• First-time requirements
35
Upstream
Midstream
Downstream
MHB JV Partners
E&C
Deepwater
HPHT
Matured Fields
Marginal Fields
MRC
LNG, LPG
VLCC
FSU
E&C
Onshore
Analyst Briefing – 4QFYEMarch 2011
E n g i n e e r e d f o r G r o w t h
MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD
Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin
50050, Kuala Lumpur, Malaysia
Investor Relations Contacts
Telephone: +60 (3) 2275 3876
Wan Mashitah Bte Wan Abdullah Sani
Chief Financial Officer
Email: mashitah@mmhe.com.my
Chang Kong Meng
Investor Relations & Business Research
Email: chang.km@mmhe.com.my
Website: http://www.mhb.com.my/
http://www.mmhe.com.my/
Terima Kasih
Спасибо
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