annual general meeting

ANNUAL GENERAL MEETING
6 June 2012
Engineered for Growth
2
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.
Annual General Meeting
3
Topic
1
Key Highlights
2
Business Operations
3
Financial Results
4
Corporate Highlights
Annual General Meeting
Key Highlights, 9-Month Period Ended December 2011
4
 Operational
• Revamped organisation structure
• Strengthened management team
• Started strategic transformation programme
• Capabilities development programme
 Financials
• Revenue of RM2.1bn
• Net profit of RM206m
 Projects
• Order intake of RM2.9bn
• Tapis Enhanced Oil Recovery (EOR)
• Telok Gas Development
• OSX-3 FPSO External Turret
• FPSO Cendor
• Floating Storage Unit (FSU) Lekas
• MRC secured rig and FPS repairs
As of 27 March, the Superlift of the 20,000 MT topside was completed. The topside is locked at the height of 47
metre. The ‘North’, ‘South’ poontoons and ‘East Row’ of the semi-submersible Hull were skidded and positioned
under the topside
Annual General Meeting
5
Topic
1
Key Highlights
2
Business Operations
3
Financial Results
4
Corporate Highlights
Annual General Meeting
Onshore Gas Terminal, Turkmenistan
6
Gumusut-Kakap FPS
7
Kinabalu Non Associated Gas (NAG) Topside
8
FPSO Cendor
9
Floating Storage Unit (FSU) Lekas
10
OSX-3 FPSO External Turret
11
Telok Gas Development
12
Tapis Enhanced Oil Recovery (EOR) Project
13
Kebabangan Northern Hub Development
14
Marine Repair
15
16
Topic
1
Key Highlights
2
Business Operations
3
Financial Results
4
Corporate Highlights
Annual General Meeting
17
Income Statement
 Revenue
• 9-month period for FPEDec11
• Novation and later eventual completion of
Turkmenistan’s Block 1 Phase 1 project
• Gumusut Kakap at advance fabrication
stage
 Pretax profit
• Newly secured projects still at preliminary
stages. Yet to contribute significantly
 Net profit
• Investment Tax Allowance (ITA) “normalised”
in FPEDec11 after tax credit in FYEMar11
Revenue RM million
6,147
4,435
4,201
2,137
1,742
Mar08
Mar09
Mar10
Mar11
FPE
Dec11
PBT RM million
349
377
424
251
236
Mar08
Mar09
Mar10
Mar11
FPE
Dec11
Net Profit RM million
451
 Per Share
• Net EPS of 12.9 sen per share
• Final dividend of 10.0 sen for FPEDec11
278
279
Mar09
Mar10
206
192
Mar08
Mar11
FPE
Dec11
Annual General Meeting
18
Balance Sheet
 Strong balance sheet
• Cash of RM2.1bn. To utilise part of IPO
proceeds for yard acquisition
Total Assets
RM million
Inventories
25.6
Total Liabilities
RM million
Cash
2,085.6
Dec 2011
RM4,462.5m
Fixed Assets
1,156.2
• Able to accommodate business expansion
• Will fund ongoing YO investments in MMHE
East and MMHE West
Receivables
1,131.3
Others
63.8
Shareholders
Funds 2,420.6
Dec 2011
RM4,462.5m
Others
115.4
Payables
1,926.5
Annual General Meeting
19
Backlog And Order Intake
 Notable backlog
• Tapis Enhanced Oil Recovery (EOR) Project
• FPSO Cendor
• Gumusut-Kakap FPS
Backlog RM million
Tapis EOR
1,317.4
 Notable order intake (subsequent event)
• Novation of the Kebabangan project
Others
85.0
Backlog RM million
Telok Gas
201.1
1,430
Dec 2011
RM3,089.3m
Turkmenistan
152.7
FSU Lekas
44.4
Kinabalu
98.5
1,270
5,827
3,727
2,180
Mar2009
FPSO Cendor
734.4
919
Mar2010
Mar2011
Value
Backlog, Turkmenistan
Value
Backlog, Malaysia
Gumusut Kakap
455.8
2,937
Dec2011
Annual General Meeting
20
Topic
1
Key Highlights
2
Business Operations
3
Financial Results
4
Corporate Highlights
Annual General Meeting
21
Preeminent Fabricator
MMHE West Yard
 Completed acquisition on March 31
• Final purchase price of RM393.4m
• Added more than 700 staff
• Yard capacity increased by 60k MT
• Fabrication area increased by 47 hectares
MMHE East Yard
 World-class facilities
• Largest yard capacity at 129.7k MT
• Biggest fabrication area at 197 hectares
• Heaviest skidding-loadout facility at 40k MT
• Largest drydock, up to 450k dwt
Annual General Meeting
22
Yard Optimisation Programme
YO Capital Expenditure RM million
3,000
Yard Capacity k MT
200
Total YO Budget
1,000
100
500
Mar09
12-month
Mar10
12-month
Mar11
12-month
Dec11
9-month
MMHE
West
MMHE
West & East
New YO
Phase 1
New YO
Phase 2
Annual YO Capex
Cumulative YO Capex
 New YO programme to improve
productivity of both yards with
• Better material-flow management
• Realignment, more systematic facilities
• More controlled working environment
• Enhanced facilities for workers’ welfare
MMHE East
Yard
• Topside
• Jacket
MMHE
West Yard
•
•
•
•
Mega-Heavy Topside
Deepwater Structure
Conversion Projects
Marine Vessel Repair
Annual General Meeting
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Revamped Organisation Structure
 Revamped structure
• Business unit centric design
• Offshore Business Unit
• Marine Repair Business Unit
• Supported by administration services and
corporate functions
• Programme Management Office
• Drive business integration
• Transformation programme
MD & CEO
Offshore
Business Unit
Admistrative &
Support Services
Marine Repair
Business Unit
Programme
Management Office
Business
Development &
Special Projects
 Objectives
• Greater focus
• Raise accountability
• Enhance efficiency
Annual General Meeting
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Transformation Roadmap
 HR transformation
• Capability development
• Talent management/retention
• Aligned performance-reward
• Strategic talent sourcing/hiring
• Internalising external capabilities
 Business improvement
• Enhance procurement process
• Effective project management
• Ownership and accountability
Ramp Up
3 Months
Full Launch
6 Months
Transition
Year 1
Monitor
Year 2
And Beyond
Programme Management Office
Focus Areas
Quick Win Delivery
Orderbook Pipeline Development
High Performing Operations
Partnership Management
Enablers
Communications
Capability Building
Performance Management
Annual General Meeting
Roadmap Implementation
25
 Key targets
• Enhance costs structure
• Ensure effective control
• Raise capability building
 Areas of focus
• Procurement process
• Project management
• Engineering expertise
• Workers’ productivity
Annual General Meeting
Engineered for Growth
Thank You
Merci
MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD
Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin
50050, Kuala Lumpur, Malaysia
Website:
http://www.mhb.com.my/
http://www.mmhe.com.my/