ASL Marine Holdings Ltd. · SGX:A04
ASL Marine — Debt Investor Presentation (September 2018)
33 slides from ASL Marine's debt investor presentation, Sep 18, 2018
Slide 1: ASL Marine Holdings Ltd. Informal Noteholders Meeting
ASL MARINE HOLDINGS LTD. Informal Noteholders Meeting 18 September 2018
Slide 2: Important Notes
Important Notes • This informal meeting is being convened for the purpose of providing Noteholders (i) with an update on the Group’s business climate and financial performance for the past financial year; and (ii) on the discussions with the principal bankers on possible additional working capital l
Slide 3: Disclaimer
Disclaimer • Certain statements in this presentation may constitute forward looking statements. Forward looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statement
Slide 4: Disclaimer
Disclaimer • You are advised not to place undue reliance on these forward looking statements, which are based on the Company’s current views concerning future events. Unless legally required, the Company undertakes no obligation to update publicly any forward looking statements, whether as a result
Slide 5: Meeting Protocol
Meeting Protocol Without Informal No recording Identification prejudice meeting and photo taking for Q&A 5
Slide 6: Agenda
Agenda 01 Opening Remarks by Mr Ang Kok Tian Chairman, Managing Director and CEO of ASL Marine Holdings Ltd. 02 Why Are We Here? 03 Snapshot of Group Performance 04 Asset Disposal Plans 05 Utilisation of Cashflows 06 Business Plans & Strategies 07 Q&A
Slide 7: Why Are We Here?
Why Are We Here? 7
Slide 8: Business Climate
Business Climate 1. Market has stabilised but has not recovered. 2. Cascading effect of the struggles of companies in the industry resulting in a credit squeeze. • Creditors are pressuring companies to repay the monies owed and tightening credit terms. • Non-renewal of revolving credit facilities by
Slide 9: EBITDA over the Past 5 Years
EBITDA over the Past 5 Years ASL Marine Holdings Ltd and its FY2014 FY2015 FY2016 FY2017 FY2018 Total Over Subsidiaries Consolidated Profit or Loss (S$'000) 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 5 Years $'000 $'000 $'000 $'000 $'000 $'000 Revenue 509,797 184,156 364,439 342,261 280,457 1
Slide 10: Existing Loan Payment Obligations [1/2]
Existing Loan Payment Obligations [1/2] S$'000 YE 30 Jun 18 As at 30 June 18 YE 30 Jun 19 YE 30 Jun 20 YE 30 Jun 21 YE 30 Jun 22 YE 30 Jun 23 YE 30 Jun 24 YE 30 Jun 25 YE 30 Jun 26 Loan Obligations Year 0 Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total Bank Obligations 128,783 35
Slide 11: Existing Loan Payment Obligations [2/2]
Existing Loan Payment Obligations [2/2] Assuming S$60m of net operating cashflows Current Loan Obligations YE 30 Jun 19 YE 30 Jun 20 YE 30 Jun 21 YE 30 Jun 22 YE 30 Jun 23 YE 30 Jun 24 YE 30 Jun 25 YE 30 Jun 26 Assuming S$65m of net Loan Obligations (S$'000) Year 1 to 8 Total Year 1 Year 2 Year 3 Ye
Slide 12: 2017 CSE
2017 CSE Noteholders have extended support to the Group in the last CSE in 2017. However, what was granted by the Noteholders in the last CSE may not be sustainable given the existing volume of business and cashflows. The principal lenders had supported the Group by providing the 5-year club term lo
Slide 13: What We Need
What We Need Banks Bonds Reprofile of loans to match operating Extend maturity. cashflows of the Group. Extend a working capital line of S$150m. Lower principal sum amortisation. (such as invoice financing / banker’s guarantee / performance bond / refund guarantee / letter of credit & trust
Slide 14: Snapshot of Group Performance
Snapshot of Group Performance 14
Slide 15: Snapshot of Group Performance
Snapshot of Group Performance EBITDA S$' m 120.0 109.9 100.0 91.3 89.2 87.8 82.8 83.9 72.5 75.2 80.0 67.7 60.0 40.0 20.0 0.0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 EBITDA Net Debt Position Current Ratio (119.2) (209.3) (189.7) (381.7) (472.6) (465.6) (567.5) (513.4) (473.5) 1
Slide 16: EBITDA over the Past 5 Years
EBITDA over the Past 5 Years ASL Marine Holdings Ltd and its FY2014 FY2015 FY2016 FY2017 FY2018 Total Over Subsidiaries Consolidated Profit or Loss (S$'000) 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 5 Years $'000 $'000 $'000 $'000 $'000 $'000 Revenue 509,797 184,156 364,439 342,261 280,457 1
Slide 17: Performance by Segment
Performance by Segment Shipchartering segment: Increase in shipchartering revenue contribution due to pick up of activities (tonnage of carry) from contracts of affreightment. Shiprepair segment: Increase in shiprepair projects as many upstream players are readying their vessels for deployment oppor
Slide 18: Vessel Revenue Contribution
Vessel Revenue Contribution The Group is one of the largest owner-operator of tugs and barges in ASEAN with a fleet of 248 vessels comprising of tugs, barges, grab dredgers, landing crafts, chemical tankers, AHTS. The Group intends to increase overall utilisation rates of 58% in FY2018 from the ship
Slide 19: Cost-Cutting & Productivity Measures
Cost-Cutting & Productivity Measures Cost-cutting Measures Reduction in admin and overheads HQ costs by S$2m from FY2017 to FY2018. No bonus for senior & middle management for past 3 years. Improving Productivity Doing more with less. Increase in productivity from management team by putting longer w
Slide 20: Shipbuilding – Working Capital Milestones
Shipbuilding – Working Capital The Group needs more banking lines to meet the project requirements of shipbuilding projects. Contract signing Steel cutting Keel laying Launching Delivery Milestones Around 18 months to complete • Support from banks needed on refund guarantee/performance bond/banker’s
Slide 21: Directional Targets
Directional Targets Profit/Loss Based on historical trends Revenue Contribution and experience in operations, Financial Year before Tax EBITDA* the Company has set a base SB, SR & SC Engineering (excluding target of a combined group impairment) revenue of S$280m from shipbuilding, ship repair and
Slide 22: Financial Position of the Group
Financial Position of the Group Losses over the last 3 years has resulted in a net reduction in the company's reserves. Amounts owing to the banks have been reduced over time despite the drawdown of S$99.9m club deal loan. Net reduction in borrowings via repayment of loan and bond obligations of S$9
Slide 23: Asset Disposal Plans
Asset Disposal Plans 23
Slide 24: Asset Disposal Plans
Asset Disposal Plans Disposal of assets resulted in a gain of S$9.3m in FY2018 (mainly 3 cranes, 19 vessels). The Company has further identified the following vessels for disposal: Original Cost Net Book Value Loans Outstanding 3 Platform Supply Vessels (“PSVs”) S$161m S$134m S$22m for 1 PSV. Remain
Slide 25: Utilisation of Cashflows
Utilisation of Cashflows 25
Slide 26: Cash Outflows from Order Cancellations
Cash Outflows from Order Cancellations Cancelled Orders Type of Vessels Total Remarks Transferred to Fleet Inventory / Work-in-progress • 1 PSV completed in FY2016 PSV - 3 3 • 2 PSV completed in FY2017 • 1 OSV cancelled in FY2017 OSV 1 2 3 • 2 OSV cancelled in FY2018 Total Value S$20m $179m S$199m T
Slide 27: Utilisation of Cashflows
Utilisation of Cashflows The Group generates substantial positive cashflows from operations. The Group had paid a total of S$251m of interest and instalments for banks and bonds for FY2017 & FY2018. 27
Slide 28: Business Plans & Strategies
Business Plans & Strategies 28
Slide 29: Business Plans & Strategies
Business Plans & Strategies 1 Capital & Funding Structure 2 Business Direction a) Recalibrate repayments to banks and a) Improve utilisation rates and charter rates of its bonds to match cashflows. fleet of vessels. b) Secure working capital and trade lines. b) Increase shiprepair and conversion bus
Slide 30: Next Steps
Next Steps The Group is in discussions with its principal lenders on possible additional working capital lines, re- profiling of some of these loans to match operating cashflows of the Group. The principal lenders have been supportive of the Group and are willing to continue to extend help to the Gr
Slide 31: Q&A
Q&A 31
Slide 32: Contact Information
Contact Information RSM Corporate Advisory Partner in Charge: Chio Kian Huat Contact Persons: Trisha Ng Neo Aik Jin Georgina Low Yap Jie Hui Email: asl_seriesnotes@RSMSingapore.sg Contact number: +65 6594 7648 32
Slide 33: Thank You
Thank You 33
ASL Marine Holdings — Debt Investor Presentation (September 2018) on 6ix