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AFFIN INVESTMENT CONFERENCE
8th April 2014
“Transformation for Success”
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.
Affin Investment Conference – April 2014
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Topic
1
Overview
2
Track Record
3
Financials
4
Moving Forward
5
Q&A
Affin Investment Conference – April 2014
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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
Selected IOCs 2014 Capex % Change
6%
-5%
-5%
-2%
-13%
-20%
Petronas Total Capex RM billion
56.6
37.1
FY10
41.2
34.9
FY11
45.0
30.8
PE2011
2011
2012
2013
Affin Investment Conference – April 2014
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Among Malaysian Yards
Preeminent Fabricator
MMHE West Yard
MMHE East Yard
 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
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Enhanced Yard Facilities Further
Yard Optimisation
YO Capital Expenditure RM million
3,000
1,012
900
1,000
732
655
3
548
500
335
147
Mar09
12mth
213
107
77
Mar11
12mth
Dec11
9mth
Mar10
12mth
168
112
Dec12
12mth
Dec13
12mth
YO Capex
Cumulative YO Capex
 MMHE West Yard
• 1 55,000MT bulkhead and quaywall
• 2 Fabrication of dock gate No.1
• 3 Auto-blast and primer workshop
 MMHE East Yard
• 25,000MT bulkhead & east wharf extension
1
2
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Topic
1
Overview
2
Track Record
3
Financials
4
Moving Forward
5
Q&A
Affin Investment Conference – April 2014
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Business Unit-Centric Organization Structure
Overall Track Record
Telok-B Topside For Telok Gas Development
 Offshore BU
• Full EPCIC workscope
• Completed 160 projects
• 56 topsides and 49 substructures
• 11 FPSO/FSO/FSU conversions
• 17 turret projects
Drydocking, Repair, Refurbishment And Upgrading Of 3rd Party LNG Vessel
 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
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Completed Projects
Supporting Frontier Developments
Gumusut-Kakap FPS
 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
Kinabalu NAG Topside
 High-pressure, high-temperature (HPHT)
• Kinabalu NAG Topside
• 1st gas production topside for HPHT field
• Fabrication completed 2012
• Manage HUC in 2013
Affin Investment Conference – April 2014
Projects Near/Recent Completion
10
For Brown Field Developments
Tapis-R Deck For Tapis EOR Project On The Installation Vessel
 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
Sail Away Of FPSO Cendor
 Additional field development
• FPSO Cendor
• MMHE’s 11th FPSO/FSO conversions
• Completed, sailed away
• Operational performance for future project
deliveries
Affin Investment Conference – April 2014
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Projects Near/Recent Completion
For Green Field Developments
Deck For The Kebabangan Northern Hub Development Project
 Topside
• Kebabangan Northern Hub Development
• 18,000 MT single integrated platform
• Fabricated at MMHE East Yard
• Near completion. Preparing for loadout
F14/F29 Process Module
 Complete offshore structure
• F14/F29 project
• 3 structures
• Topside, substructure, process module
• Damar project. Topside and jacket
Affin Investment Conference – April 2014
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Topic
1
Overview
2
Track Record
3
Financials
4
Moving Forward
5
Q&A
Affin Investment Conference – April 2014
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Financial Updates
Income Statement And Balance Sheet
Income Statement RM m
Revenue
Offshore
Marine
Operating Profit
Offshore
Marine
Share Of Profit/(Loss)
Of JCE
Profit Before Taxation
Taxation
MI
Net Profit
EPS Per Share
2013
2012
2,884.5
2,599.9
284.6
3,329.8
2,981.3
348.5
196.3
104.9
70.4
242.8
153.7
80.8
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
1.9
0.1
Total Assets
4,733.2
4,817.3
Others
1.3
(25.1)
Shareholders’ Funds
2,583.9
2,506.1
197.6
217.7
Payables
Others
1,841.2
308.1
2,281.7
29.5
39.6
0.7
25.5
1.2
Total
4,733.2
4,817.3
236.5
242.0
NTA Per Share
RM1.58
RM1.53
14.8 sen
15.1 sen
Note: Because of rounding, numbers may not tally with the total
Affin Investment Conference – April 2014
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Financial Updates
Order Intake & Backlog
Backlog RM million
1,430
Backlog RM million
1,270
5,827
919
3,727
2,180
Mar09
Mar10
Mar11
2,937
1,772
Dec11
Dec12
2,556
TLP
Malikai
SK316
Dec13
Dec 2013
RM2,556.4m
Turkmenistan Block 1 Phase 1
Backlog (Above) / Order Intake (Below)
Order Intake RM million
2,934
2,004
Mar09
2,559
1,701
238
191
Mar10
Mar11
Dec11
Dec12
SK316 reflects MHB’s 50% share
Others
KBB
MBU
Kinabalu
FPSO
Cendor
Tapis
Dec13
Affin Investment Conference – April 2014
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Corporate Updates
Shareholding Information
Lembaga
Tabung Haji
6.13%
Lembaga
Tabung Haji
6.12%
PNB & PNB
Unit Trust
Funds 4.31%
As At
Dec 2013
EPF 3.02%
Other Malaysian
Shareholders
9.54%
Foreign
Investors 2.01%
1-Year Share Price RM
Technip SA
8.50%
Technip SA
8.50%
PNB & PNB
Unit Trust
Funds 4.35%
As At
Mar 2014
EPF 3.33%
Other Malaysian
Shareholders
9.13%
Foreign
Investors 2.06%
Affin Investment Conference – April 2014
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Topic
1
Overview
2
Track Record
3
Financials
4
Moving Forward
5
Q&A
Affin Investment Conference – April 2014
Leveraging On Technip’s Partnership
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TLP Malikai Deepwater Project
PDMS Image Of TLP Malikai
TLP Malikai Topside In Fabrication Phase At MMHE West Yard
 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
Affin Investment Conference – April 2014
Leveraging On Technip’s Partnership
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SK316
PDMS Image Of SK316
SK316 Topside Fabrication At MMHE East Yard
 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
Affin Investment Conference – April 2014
Leveraging On Technip’s Partnership
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Milestone EPCIC Contract
A
Transformation
Partnership
FEED
B
rollover
50:50 JV Project Management
Current
epC
Future
EPCC
P
rocurement
Subcontracting
D
Expansion
Growth
 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
C
CPP
WHP
Bridge Link
& Jackets
I
HUC
T&
Detailed
Fabrication
Engineering
Construction
Install
Pipeline
& Onshore
Pre-Commissioning
Technip (FEED Competition Stage)
Technip-MMHE JV
Technip
MMHE
Affin Investment Conference – April 2014
Thank You
Terima Kasih
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/
“Transformation for Success”
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