AFFIN INVESTMENT CONFERENCE - MHB · 2 3 147 213 107 168 112 335 548 655 732 3 1,012 Mar09 12mth Mar10 12mth Mar11 12mth Dec11 9mth Dec12 12mth Dec13 12mth RM million 3,000 1,000

“Transformation for Success” 8th April 2014

AFFIN INVESTMENT CONFERENCE

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.

Affin Investment Conference – April 2014

Topic

1 Overview

2 Track Record

3 Financials

4 Moving Forward

5 Q&A

3


Macro Perspective

Supportive Domestic Environment

External environment

• Stagnated oil price

• Unconventional-frontier projects cost

• Development time frame

• IOCs easing back on capex programme

Domestic environment

• 2013

• PETRONAS production growth +5.8%

• 10 exploration discoveries, RRR 1.3x

• +2% to 22.6bn boe petroleum resources

• Coming up

• 24 IOR/EOR projects

• 5-year umbrella contract for design and

engineering services to 4 local contractors

• Re-alignment of organisational structure

4

37.1 34.9 30.8

41.2 45.0

56.6

FY10 FY11 PE2011 2011 2012 2013

Petronas Total Capex RM billion


-20%

-13%

-5% -5% -2%

6% Selected IOCs 2014 Capex % Change

Among Malaysian Yards

Preeminent Fabricator

Infrastructure and facilities

• Largest yard capacity of 130k MT

• Heaviest loadout facility at 55k MT

• Biggest C&A Workshop

• Largest drydock at 450,000 dwt

• Complete conversion capabilities

5

MMHE East Yard MMHE West Yard


Enhanced Yard Facilities Further

Yard Optimisation

MMHE West Yard

• 55,000MT bulkhead and quaywall

• Fabrication of dock gate No.1

• Auto-blast and primer workshop

MMHE East Yard

• 25,000MT bulkhead & east wharf extension

6

1

2

3

147 213

107 77 168

112

335

548 655

732

900 1,012

Mar0912mth

Mar1012mth

Mar1112mth

Dec119mth

Dec1212mth

Dec1312mth

YO Capital Expenditure RM million

3,000

1,000

500

YO Capex

Cumulative YO Capex

1 2

3


7

Topic

1 Overview

2 Track Record

3 Financials

4 Moving Forward

5 Q&A


Business Unit-Centric Organization Structure

Overall Track Record

Offshore BU

• Full EPCIC workscope

• Completed 160 projects

• 56 topsides and 49 substructures

• 11 FPSO/FSO/FSU conversions

• 17 turret projects

Marine Repair BU

• Repaired more than 3,700 vessels

• Focus on energy vessels

• Extending to LNG/rig repair/refurbishment

• Complements Offshore BU

• Majority 3rd party vessels

8

Drydocking, Repair, Refurbishment And Upgrading Of 3rd Party LNG Vessel Telok-B Topside For Telok Gas Development


Completed Projects

Supporting Frontier Developments 9

Deepwater

• Kikeh Dry Tree Unit Truss SPAR, 2006

• 1st SPAR installed outside GoM

• Gumusut-Kakap FPS, 2013

• Largest, fully built, integrated on land

• Tension Leg Platform (TLP) Malikai

Gumusut-Kakap FPS

High-pressure, high-temperature (HPHT)

• Kinabalu NAG Topside

• 1st gas production topside for HPHT field

• Fabrication completed 2012

• Manage HUC in 2013

Kinabalu NAG Topside


Projects Near/Recent Completion

For Brown Field Developments

Enhanced Oil Recovery (EOR) Project

• Tapis EOR

• 1st full-field domestic EOR

• Tapis-Q topside and jacket completed

• Tapis-R deck completed

• More EOR projects in the pipeline

Additional field development

• FPSO Cendor

• MMHE’s 11th FPSO/FSO conversions

• Completed, sailed away

• Operational performance for future project

deliveries

10


Sail Away Of FPSO Cendor Tapis-R Deck For Tapis EOR Project On The Installation Vessel

Projects Near/Recent Completion

For Green Field Developments

Topside

• Kebabangan Northern Hub Development

• 18,000 MT single integrated platform

• Fabricated at MMHE East Yard

• Near completion. Preparing for loadout

Complete offshore structure

• F14/F29 project

• 3 structures

• Topside, substructure, process module

• Damar project. Topside and jacket

11

F14/F29 Process Module Deck For The Kebabangan Northern Hub Development Project


12

Topic

1 Overview

2 Track Record

3 Financials

4 Moving Forward

5 Q&A


Financial Updates

Income Statement And Balance Sheet 13

Balance Sheet RM m Dec 2013 Dec 2012

Non-Current Assets

Inventories

1,901.6

12.6

1,800.9

11.6

Receivables

Cash

2,193.9

623.2

2,114.4

890.3

Others 1.9 0.1

Total Assets 4,733.2 4,817.3

Shareholders’ Funds 2,583.9 2,506.1

Payables

Others

1,841.2

308.1

2,281.7

29.5

Total 4,733.2 4,817.3

NTA Per Share RM1.58 RM1.53

Note: Because of rounding, numbers may not tally with the total

Income Statement RM m 2013 2012

Revenue

Offshore

Marine

2,884.5

2,599.9

284.6

3,329.8

2,981.3

348.5

Operating Profit

Offshore

Marine

196.3

104.9

70.4

242.8

153.7

80.8

Share Of Profit/(Loss)

Of JCE

1.3

(25.1)

Profit Before Taxation 197.6 217.7

Taxation

MI

39.6

0.7

25.5

1.2

Net Profit 236.5 242.0

EPS Per Share 14.8 sen 15.1 sen


Financial Updates

Order Intake & Backlog 14

FPSO Cendor KBB

Tapis Kinabalu

MBU Others

SK316

TLP Malikai

Backlog RM million

Dec 2013

RM2,556.4m

Order Intake RM million

5,827

3,727

2,180 2,937

1,772 2,556

1,430

1,270

919

Mar09 Mar10 Mar11 Dec11 Dec12 Dec13

Backlog RM million

SK316 reflects MHB’s 50% share

2,004

2,934

1,701

2,559

Mar09 Mar10 Mar11 Dec11 Dec12 Dec13

238 191

Turkmenistan Block 1 Phase 1

Backlog (Above) / Order Intake (Below)


Foreign Investors 2.01%

Other Malaysian Shareholders

9.54%

EPF 3.02%

PNB & PNB Unit Trust

Funds 4.31%

Lembaga Tabung Haji

6.12%

Technip SA 8.50%

Foreign Investors 2.06%

Other Malaysian Shareholders

9.13%

EPF 3.33%

PNB & PNB Unit Trust

Funds 4.35%

Lembaga Tabung Haji

6.13%

Technip SA 8.50%

Corporate Updates

Shareholding Information 15

As At

Mar 2014

1-Year Share Price RM

As At

Dec 2013


16

Topic

1 Overview

2 Track Record

3 Financials

4 Moving Forward

5 Q&A


Leveraging On Technip’s Partnership

TLP Malikai Deepwater Project

Scope of work

• Detailed engineering for hull by Technip

MHB Hull Engineering. Fabrication and

commissioning by MHB with Technip’s input

• Malikai Topside and TLP Hull

• Total weight 26,400 MT

17

TLP Malikai Topside In Fabrication Phase At MMHE West Yard PDMS Image Of TLP Malikai



SK316

Scope of work

• FEED followed with Early Detailed

Engineering Work (EDEW) and EPCIC

• CPP, WHP, interconnecting bridge between

CPP and WHP, and 2 Jackets

• Total weight 33,100 MT

18

SK316 Topside Fabrication At MMHE East Yard PDMS Image Of SK316



Milestone EPCIC Contract

Evolving, challenging landscape

• Lump sum, faster project delivery

• Full EPC work scope

SK316 model

• Open competitive bidding.

• Combining/complementing JV partners’

experience, expertise and assets

19

Transformation

Partnership

Expansion

Growth

A B

C D

Current

epC

Future

EPCC

FEED

rollover

50:50 JV Project Management

CPP

WHP

Bridge Link

& Jackets

Detailed

Engineering

Procurement

Subcontracting

T&I

HUC

Install

Pipe-

line Fabrication

Construction

& Onshore

Pre-Commissioning

Technip (FEED Competition Stage)

Technip-MMHE JV

Technip

MMHE


“Transformation for Success”

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 protected]

Chang Kong Meng

[email protected]

Website: http://www.mhb.com.my/

http://www.mmhe.com.my/

Thank You Terima Kasih

Documents

AFFIN INVESTMENT CONFERENCE - MHB · 2 3 147 213 107 168 112 335 548 655 732 3 1,012 Mar09 12mth Mar10 12mth Mar11 12mth Dec11 9mth Dec12 12mth Dec13 12mth RM million 3,000 1,000