analyst briefing · analyst briefing –4qfyemarch 2011 3 topic 1 operational review 2 4q &...

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


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


6

Topic




4 Perspective

5 Q&A


Tangga Barat Topside Completed in September 2010 for Petronas Carigali


BP Angola External Turret Completed in November 2010 for Sofec Inc


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


Gumusut-Kakap FPS Successful integration of the hull blocks in March 2011


Gumusut-Kakap FPS Hull of the FPS. Scheduled completion by 2QCY2012


Gumusut-Kakap FPS Topside of the FPS. Scheduled completion by 2QCY2012


Seri Bijaksana LNG carrier. Owned by MISC Berhad. Dwt 89,953


NASA Unity ULCC. Owned by Bernhard Schulte Shipmanagement. Dwt 269,605


Kim Jacob Crude oil tanker. Owned by Ernst Jacob GMBH & Co. KG. Dwt 159,211



Topic




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


EBIT RM million

5.1%8.3% 8.5%

-36.7%

11.1% 9.8%


EBIT Margin %


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


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


EBIT RM million

18.5%

5.1% 6.2%

17.5%

7.6% 9.0%


EBIT Margin %


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


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


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


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



Topic




4 Perspective

5 Q&A

FPSO Cendor


FPSO Typical Topsides Schematic Flow Path

29source : SBM Offshore, FPSO Topsides Analyst Briefing – 4QFYEMarch 2011


Topic




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


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


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


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


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


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: [email protected]

Chang Kong Meng

Investor Relations & Business Research

Email: [email protected]

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

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

Terima Kasih

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analyst briefing · analyst briefing –4qfyemarch 2011 3 topic 1 operational review 2 4q &...

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