masteel fy13 briefing slides final 140402 (without...
TRANSCRIPT
-
Maste
el
MA
LA
YS
IA S
TE
EL
WO
RK
S (K
L) B
HD
Co
rpo
rate
Pre
se
nta
tion
F
Y13 R
esu
lts &
Co
rpo
rate
Up
date
Pre
se
nte
d b
y:
Da
to’ S
ri Ta
i He
an
Le
ng
, Ma
na
gin
g D
irec
tor / C
EO
3 A
pril 2
01
4
•FY13FinancialHighlights
•Industry
Highlights
•Growth
Stra
tegies
•Investm
entMerits
•Appendix
•Corporate
Profile
CONTENTS
2
-
Financial H
ighlights
Regaining M
omentum
3
687.26
1,004.79
1,253.37
1,312.19
1,375.44
0
30
0
60
0
90
0
1,2
00
1,5
00
FY2
00
9FY
20
10
FY2
01
1FY
20
12
FY
20
13
RM’m
ilGro
up R
evenue (R
M'm
il)
Revenue Tre
nd
Riding on the domestic
constru
ction boom…
4
-
4Q13 In
com
e S
tate
ment
5
4Q
13
4Q
12
Ch
an
ge
R
M'm
ilF
Y1
3F
Y1
2C
ha
ng
e
Re
ma
rks
35
2.0
31
5.2
11
.7%
Re
ve
nu
e
13
75
.41
31
2.2
4.8
%D
ue
to in
cre
as
ed
sa
les
vo
lum
e
de
sp
ite lo
we
r AS
Ps
16
.41
1.9
37
.6%
EB
ITD
A
69
.46
1.9
12
.1%
4.7
%3
.8%
0.9
pt
EB
ITD
A m
arg
in
5.0
%4
.7%
0.3
pt
5.8
2.9
10
2.0
%P
BT
3
0.7
24
.92
3.4
%
1.7
%0
.9%
0.7
pt
PB
T m
arg
in
2.2
%1
.9%
0.3
pt
5.4
2.7
97
.8%
PA
TM
I 2
8.8
24
.31
8.2
%
1.5
%0
.9%
0.7
pt
Ne
t ma
rgin
2
.1%
1.9
%0
.2 p
t
2.4
81
.29
92
.2%
Ba
sic EP
S (se
n)
13
.20
11
.51
14
.7%
Po
sitiv
e o
pe
ratin
g
lev
era
ge
from
hig
he
r ca
pa
city
utilis
atio
n
In lin
e w
ith a
bo
ve
Toplineboosted by stro
ng constru
ction ste
el demand domestic
ally…
79%
65%
83%
92%
21
%
35
%
17
%8
%
FY
201
0F
Y2
01
1F
Y2
01
2F
Y2
01
3
Re
ven
ue
Segm
entation
: Ge
ograph
ical Location
Ove
rsea
s
Loca
l
Revenue b
y G
eogra
phic
al L
ocatio
n
RM ‘m
ilFY2010
FY2011
FY2012
FY2013
Local
798.8
819.7
1,090.5
1,271.6
Overse
as
206.0
434.2
221.7
103.9
Tota
l1,0
04.8
1,2
53.9
1,3
12.2
1,3
75.4
Revenue S
egm
enta
tion
35%47%
38%29%
65%53%
62%71%
FY2010FY2011
FY2012FY2013
Revenue Segmentation: Products
BarsBillets
Revenue b
y P
roduct T
ype
RM ‘m
ilFY2010
FY2011
FY2012
FY2013
Bille
ts 354.0
592.4
505.4
397.5
Bars
650.8
661.0
806.8
977.9
Tota
l1,0
04.8
1,2
53.4
1,3
12.2
1,3
75.4
6
Buoyed by Malaysia’s ro
bust c
onstru
ction industry, a
lso leveraging on
presence in KlangValley…
-
Net gearing improved on stro
nger operating cash flo
w… even after
RM44 mil C
APEX for th
e year
Bala
nce S
heet (‘m
il)As a
t 31.1
2.2
013
As a
t 31.1
2.2
012
Property, P
lant &
Equipment
482.3
460.1
Curre
nt A
ssets
523.8
461.8
Curre
nt L
iabilitie
s434.6
368.6
Non-Curre
nt L
iabilitie
s25.2
35.4
Shareholders’ E
quity
555.1
525.9
Borro
wings (S
T+LT)
289.2
283.7
Cash & Cash Equivalents
60.4
54.7
Gearin
g (n
et o
f cash)
0.41x
0.44x
Bala
nce S
heet
7
Div
idend H
istory
2.2
4.4
4.9
2.1
2.8
2.1
3.3
2.2
7.3
%9
.9%
6.2
%1
0.0
%8
.6%
13
.4%
7.6
%
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Div
idend H
istory
Div
ide
nd
(RM
'mil)
Pa
yo
ut R
atio
(%)
2.1
3.0
2.5
1.0
1.4
1.0
1.5
1.0
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Div
ide
nd
Pe
r Sh
are
(sen
)
8
Has consiste
ntly paid dividends… even in loss m
aking year
Div
idends in
resp
ect o
f FY2013
�1st
interim
tax
exempt
dividend
of
0.5
sen
per
ordinary
share
(paid
on11thOcto
ber2013)
�2nd
interim
tax
exempt
dividend
of
0.5
sen
per
ordinary
share
(tobepaid
inMay2014)
-
Industry
Highlights
Powered by th
e Domestic M
arket
9
10
Local ste
el d
em
and u
nderp
inned b
y stro
ng a
ctiv
ity in
local
constru
ctio
n in
dustry
�Constru
ctio
n industry
expected to
secure RM115b worth
of
projects in
2014 (C
onstru
ction In
dustry
Development B
oard, 2
013)
Dem
and u
nderp
inned b
y in
frastru
ctu
ral a
ctiv
ities fro
m E
TP
�Exam
ple
s of o
ngoin
g k
eynote
mega-p
roje
cts:
KVMRT 1 Sungai B
uloh–Kajang
Klang Valle
y LRT extensio
ns
TunRazakExchange
PR1MA
�Increased fo
cus o
n affo
rdable housin
g development
Industry
Highlights
Demand for ste
el bars to
remain robust o
wing to stro
ng activity in the
domestic
constru
ction industry
…
-
Spread between ste
el bar and scrap metal prices re
main relatively
constant… minimal concerns over lo
wer se
lling prices
300
350
400
450
500
550
600
650
Ma
r 13
April 1
3M
ay 1
3June 1
3July
13
Aug 1
3S
ept 1
3O
ct 1
3N
ov 1
3D
ec 1
3Jan 1
4 F
eb 1
4M
ar 1
4
US
D/M
T
Mo
nth
Inte
rna
tion
al S
tee
l Pric
es
Mo
ve
me
nt C
ha
rt
Bille
tS
cra
pR
ebar
Sourc
e: C
RU
Ste
els
Growth Stra
tegies
Building on core competencies
12
-
Stra
tegic
Positio
nofFacto
ries
•Factorie
sin
Petalin
gJayaandKlang
•Excelle
ntgeographicalpositio
nto
beoneofthekeysupplie
rsof
steelbarsforallmegaprojectsin
theGreaterKlangValle
yRegion
•Examples:
KVMRT1,
LRT
extensio
ns,
LCCT
Term
inal,
PR1MA,
Gemas-J
Bdouble
trackingproject,
NPEextensio
n,andgrowth
ininfra
structure
andhousin
gdevelopmentsectors
Siz
eable
mark
etfo
rcore
pro
ducts
•Steelbarsconsumptio
nform
shighestcomponentoftotalapparent
steelconsumptio
nin
Malaysia
(2.49
millio
nMT,
approx.28%)
(Malaysia
nIro
n&
SteelIndustry
Federatio
n,2012)
13
Growth
Stra
tegies
Gro
wth
Stra
tegie
s
Building up capacity in our core ste
el business to
capture
increasing demand for ste
el bars…
Insta
lled
Capacity
(MT p
.a.)
2013
2014
2015
2016
Bille
t Pla
nt
650,0
00
700,0
00
700,0
00
700,0
00
Rollin
g M
ill400,0
00
450,0
00
550,0
00
650,0
00
•In
vestin
g R
M80 m
illion in
CAPEX in
FY14 to
incre
ase
steel b
ar c
apacity
to 5
50K M
T p
.a.
oNew c
apacitie
s will a
llow G
roup to
benefit fro
m e
conom
ies o
f scale
& m
eet
dom
estic
/regio
nal d
em
and fo
r steel b
illets &
bars
+50,000
+100,000
14
+100,000
-
Investm
ent M
erits
Standing tall in
the crowd
15
Remains an attra
ctive investm
ent case to the domestic
steel
market fo
r investors…
Core
busin
ess c
ontin
ues to
pro
vid
e
Gro
up’s b
ase
line g
rowth
; annual re
venues
have g
rown a
t a C
AGR o
f >20% o
ver th
e
past fe
w y
ears
Stro
ng c
om
petitiv
e e
dge o
f Gro
up’s m
ill due to
more
stable
inputs o
f scra
p m
eta
l and e
nerg
y (v
s peers’ m
ills that u
se iro
n
ore
, gas a
nd c
okin
g c
oal)
Benefits fro
m stra
tegic
Kla
ng V
alle
y
locatio
n
Dom
estic
industry
spurre
d b
y E
TP &
10MP
rollo
uts; c
onstru
ctio
n/in
frastru
ctu
re
work
s require
long ste
el
Long ste
el b
ar p
roductio
n se
cto
r not
impacte
d b
y a
ny C
hin
ese
steel su
rplu
s.
Regio
nal o
pportu
nitie
s ple
ntifu
l due to
constru
ctio
n a
nd in
frastru
ctu
re w
ork
s underta
ken b
y m
any A
sean
& A
sian
econom
ies
Curre
ntly
tradin
g a
t P/E
(ttm) o
f 7.7
x
Low P
/Book v
alu
e o
f 0.4
1x. B
ook v
alu
e
per sh
are
of R
M2.5
1 (F
Y13) v
s share
pric
e
of R
M1.0
1 (3
1/3
/14)
Expanded c
apacity
at B
ukit R
aja
meltsh
op
to 6
50,0
00 M
T fro
m 6
00,0
00 M
T in
2013
Build
ing n
ew 2
00,0
00 M
T ro
lling m
ill –re
ady b
y m
id-2
015; ta
kes to
tal c
apacity
to
650,0
00 M
T w
hen fu
lly o
pera
tional
Spare
capacity
to ta
p in
to m
ore
mark
ets
Investm
ent M
erits
BUSIN
ESS
VALUATIO
N
INDUSTRY
GROW
TH
16
-
An attra
ctive investm
ent case in the domestic
steel market… one
of th
e few profita
ble players
Investm
ent M
erits
17
Com
pany
Share
Pric
e
(31.3
.14)
Mark
et
Cap
(RM’ m
il)
Tra
iling
EPS
(sen)
Tra
iling
PE (X
)Tra
iling
PATMI
(RM ‘m
il)
Ann JooResources
1.12
560.7
2.45
45.7
12.3
#Lion In
dustrie
s0.61
437.7
(13.65)
-(97.9)
Maste
el
1.0
1220.3
13.2
07.7
28.8
#Southern Steel
1.50
629.1
9.67
15.5
40.6
Kinste
el
0.165
171.9
(19.70)
-(205.2)
# FYE 30 June
18
New R
ollin
g M
ill-Bukit R
aja
, Kla
ng
(constru
ctio
n p
rogre
ss as a
t 30
thJanuary
, 2014)
-
THANK Y
OU
http
://www.m
aste
el.c
om
.my
IR C
onta
cts
Tom
my S
imE: to
mm
ysim
@m
aste
el.c
om
.my
T: +
603-7
781 1
611 / 0
16-2
89 2
078
Tere
nce L
oo
E: te
rence@aquila
s.com
.my
T: +
603-2
711 1
391 / 0
12-6
29 5
618
19
Corporate Profile
20
-
Corp
ora
te In
form
atio
n
Liste
d sin
ce 2005…
Ma
lay
sia S
tee
l Wo
rks (K
L) Be
rha
d(M
AS
TE
EL)
Listed
Bu
rsa M
ala
ysia
Ma
in B
oa
rd (o
n 7
Fe
b 2
00
5)
Se
ctor
Ind
ustria
l Pro
du
cts
Sto
ck C
od
es
50
98
(Bu
rsa); M
SW
K.K
L (Re
ute
rs); MS
W:M
K (B
loo
mb
erg
)
Sh
are
Ca
pita
lR
M1
11
.0 m
il (22
2.0
mil sh
are
s of R
M0
.50
pa
r)
Ma
rket C
ap
italisa
tion
RM
22
0.3
mil (R
M1
.01
as a
t 31
stM
arch
20
14
)
MA
ST
EE
L Wa
rran
ts 20
10
/20
15
Wa
rran
t Co
de
sM
AS
TE
EL-W
A
No
. of W
arra
nts
10
5.4
mil a
t 11
Ma
y 2
01
2
Term
s of W
arra
nts
Exp
ires 2
6 O
ct 20
15
; Exe
rcise p
rice o
f RM
0.6
7 e
ach
Ma
rket C
ap
italisa
tion
RM
36
.4 m
il (RM
0.3
45
as a
t 31
stM
arch
20
14
)
21
�Esta
blish
ed
in1971,
Maste
elbegan
operatio
ns
inPetalin
gJayaproducingcommercialmild
steelround
bars
�Petalin
gJayarollin
gmill
isafully-contin
uousmill
with
reheatin
gfurnace;capacity
of400KMT/pa
�Bukit
Raja
meltsh
op,has
acapacity
of650K
MT/pa
�Today,
Maste
elis
oneofthetop5integratedste
el
mills
inMalaysia
�Maste
el’s
finish
ed
products
adhere
toSIRIM
(MS
146),
ISO
9001
and
Austra
liaCertific
atio
nAuthority
forReinforcingSteelsLtd
(ACRS)sta
ndards
�Maste
eldistrib
utesits
products
locally
(via
awide
netw
ork
of>60dealersnatio
nwide)anddire
ctexports
Ste
el
bille
ts
Ste
el b
ars
Backgro
und:
40-year tra
ck record in ste
el millin
g…
-
�MELT
SHOP AT B
UKIT
RAJA
�ROLLIN
G M
ILL A
T P
ETALIN
G J
AYA
SC
RA
P
ME
TA
L
EL
ET
RIC
AR
C
FU
RN
AC
E
CO
NT
INU
OU
S
CA
ST
ING
MA
CH
INE
BIL
LE
TS
RE
HE
AT
FU
RN
AC
ER
OL
LIN
GB
AR
DE
LIV
ER
YD
EL
IVE
RY
Capacity: 650,000MT pa
Capacity: 400,000MT pa
Integrated facilitie
s within the KlangValley…
Inte
gra
ted F
acilitie
s23
Core
Pro
ducts
Providing the building blocks fo
r the region’s g
rowth…
Ste
el B
illets
Ste
el B
ars
Siz
e100x 100 m
m,130 x 130 m
m, 1
20 x 120 m
m
Length
Standard 12 m
Cate
gory
Semi fin
ish product fo
r rollin
g m
ill
Gra
de
To custo
mer’s re
quire
ment
Siz
eB
ar d
iam
ete
r 10, 1
2, 1
6, 2
0, 2
2, 2
4, 2
5, 2
8 a
nd 3
2 m
m
Bar L
en
gth
Sta
ndard
12 m
Cate
go
ryC
onstru
ctio
n S
teel
Gra
de
500
Pro
du
ct S
pecific
atio
ns:
MS
146: 2
000 a
nd
BS
4449: 2
005
AS
NZ
4761
MAIN
USE
Ste
el b
illets a
re u
sed in
rollin
g m
ills to
pro
duce b
ars, w
ire ro
ds a
nd ste
el se
ctio
ns
MAIN
USE
Ste
el b
ars c
an b
e u
sed a
s a te
nsio
nin
g
devic
e in
rein
forc
ed c
oncre
te a
nd
rein
forc
ed m
aso
nry
structu
res h
old
ing th
e
concre
te in
com
pre
ssion
24