Malaysian Resources Corp. Bhd. · MYX:MRCB
Malaysian Resources Corp. Bhd — Q4 2018 Earnings Presentation
19 slides from Malaysian Resources Corp. Bhd's earnings presentation, February 2019
Slide 1: Analyst Briefing – Quarter ended 31 December 2018
ANALYST BRIEFING Quarter ended 31 December 2018 www.mrcb.com
Slide 2: Table of Contents
Table of Contents MRCB Group Overview 3 Financial Performance 8 Business Model 4 Segmental Reporting: Overview 13 MRCB Financial Summary 6 Segmental Reporting: Property Development 14 YTD 2018 Highlights 7 & Investment Segmental Reporting: Engineering, Construction 17 & Environment
Slide 3: MRCB Group Overview
1. MRCB Group Overview 2 core activities: Property Development & Investment Engineering, Construction & Environment Other activities: Facilities Management & Parking Pioneered Transport Oriented Development (“TOD”) in Malaysia Property investment is conducted through 27.94% owned MRCB-Quill REIT 3
Slide 4: Business Model – Property Development & Investment
2. Business Model – Property Development & Investment Bespoke Buildings Pre-let on Long Term Leases • Purpose built buildings • Carries more value due to customisation • Profits from lease income and possible disposal in the future Bespoke Buildings for Sale • Pre-sell to owner occupiers or other pu
Slide 5: Business Model – Engineering, Construction & Environment
2. Business Model – Engineering, Construction & Environment Infrastructure Commercial Environment Transmission and Residential Lines ▪ Largest Bumiputera construction company ▪ Full service and autonomous construction company ▪ Strong track record and extensive engineering skillsets which allow us t
Slide 6: MRCB Financial Summary
3. MRCB Financial Summary MRCB 4Q FY2018 Overview MRCB Segment Overview Property Engineering & Others Revenue PBT Development Construction RM 1,871 mil. RM 123 mil. 29% y-o-y 54% y-o-y Revenue RM mil. 1,043 759 69 37% y-o-y PAT Net Gearing RM 103 mil. Revenue 0.19 x Contribution 56% 41% 3% 42% y-o-y
Slide 7: YTD 2018 Highlights
4. YTD 2018 Highlights Revenue (RM mil.) Operating Profit (RM mil.) PBT (RM mil.) EPS (sen) 29% 48% 54% 64% 2,641 269 6.33 273 1,871 141 123 2.30 FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 Key Highlights • Higher revenue recognised in FY2017 mainly due to RM1.1 bil. construction revenue
Slide 8: Financial Performance – Profit & Loss
5. Financial Performance – Profit & Loss Y-o-Y Y-o-Y RM' Million Q4 FY18 Q4 FY17 12M 2018 12M 2017 Growth % Growth % Revenue 374 350 7.0% 1,871 2,641 (29.2)% Other Operating Income 15 88 (83.5)% 50 126 (60.7)% Total Revenue 389 438 (11.3)% 1,920 2,767 (30.6)% Operating Expenses (370) (336) 9.9% (1,7
Slide 9: Financial Performance – Quarterly Analysis
5. Financial Performance – Quarterly Analysis Revenue Operating Profit and Margin 664 102 29.1% 428 405 350 374 54 13.3% 43 19 24 5.6% 6.3% 5.1% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 PBT and Margin EPS (sen) 132 4.50 37.8% 43 31 41 10.6% 8 7.1% 6.1% 2.1% 0.76 0.60 0.49 0.45 Q4'
Slide 10: Financial Performance – Balance Sheet
5. Financial Performance – Balance Sheet NAV Per Share (sen) RM' Million Q4 FY18 Q3 FY18 111.1 Total Assets Current Assets 3,478 4,608 110.3 Non-Current Assets 4,872 5,861 110.0 109.8 Total Assets 8,350 10,469 109.3 Total Liabilities Current Liabilities 2,109 4,143 Non-Current Liabilities 1,341 1,43
Slide 11: Financial Performance – Borrowings
5. Financial Performance – Borrowings Leverage Profile (RM mil.) Q4 2018 Q3 2018 Net Debt and Gearing Debt Short Term Borrowings 729 2,850 0.71x 1.10x Long Term Borrowings 770 909 0.58x HP creditors 2 2 0.53x 3,439 Total Debt 1,501 3,761 2,882 3,479 2,606 0.19x Less: Cash and Cash Equivalents 551 28
Slide 12: Financial Performance – Reduction in Borrowings
5. Financial Performance – Reduction in Borrowings Post Disposal of Disposal of RM million FY2018 Ascott Celcom Total Borrowings 1,501 1,501 1,501 Cash & Bank Balances (551) (681) (745) Net Borrowings/(Cash) 950 820 756 Total Equity 4,900 4,900 4,900 Net Gearing (times) 0.19 0.17 0.15 12
Slide 13: Segmental Reporting: Overview
6. Segmental Reporting: Overview Revenue Trend – RM1,871 mil. Revenue Contribution Analysis 2,641 3% E&C 1,871 1,774 1,043 Property 759 788 41% Development 69 79 FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 56% Others** Group E&C Property Others** Development Segmental Profit Trend – RM15
Slide 14: Segmental Reporting: Property Development & Investment
7. Segmental Reporting: Property Development & Investment Y-o-Y Y-o-Y RM' Million Q4 FY18 Q4 FY17 12M 2018 12M 2017 Growth % Growth % Revenue 160 168 (4.7)% 1,043 788 32.4% Segmental Profit 9 57 (84.1)% 98 169 (42.0)% Margin (%) 5.6% 33.8% 9.4% 21.4% Segmental Profit and Margin Performance Discussio
Slide 15: Segmental Reporting: Property Development Projects
7. Segmental Reporting: Property Development Projects Total sales of RM470 mil. in 2018 Property Sales YTD 2018 – RM470 mil. Unbilled Sales – RM1,563 mil. Total % Sales Sales Revenue Project Unbilled Project / Sales (RM' mil.) Project Achieved Recorded Project / Sales (RM' mil.) Recognised Completio
Slide 16: Segmental Reporting: Property Development Projects
7. Segmental Reporting: Property Development Projects Land Size GDV Start Completion % Stake (Acres) RM' mil. Date Date Transport Oriented Developments KL Sentral: Lot F 5.70 2,993 100% 2018 2025 PJ Sentral Garden City 11.91 2,619 100% 2013 2022 Penang Sentral 22.65 2,865 100% 2015 2027 Cyberjaya Ci
Slide 17: Segmental Reporting: Engineering, Construction & Environment
8. Segmental Reporting: Engineering, Construction & Environment Y-o-Y Y-o-Y RM' Million Q4 FY18 Q4 FY17 12M 2018 12M 2017 Growth % Growth % Revenue 197 159 23.7% 759 1,774 (57.2)% Segmental Profit 11 46 (75.3)% 56 93 (39.3)% Margin (%) 5.8% 28.9% 7.4% 5.2% Segmental Profit and Margin Performance Dis
Slide 18: Engineering, Construction & Environment – Unbilled External Order Book
8. Segmental Reporting: Engineering, Construction & Environment Unbilled External Order Book – RM21,796 mil. External Contracts Contract External Order Book Analysis RM'mil Value Completion Buildings: Desaru Convention Centre 61 90% Fee-based 5% Desa Desaru 223 90% Buildings Westin Desaru Resort 208
Slide 19: Malaysian Resources Corporation Berhad
MALAYSIAN RESOURCES CORPORATION BERHAD Level 30, Menara Allianz Sentral, No. 203, Jalan Tun Sambanthan, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia www.mrcb.com 19
Malaysian Resources Corporation Berhad — Q4 2018 Earnings Presentation on 6ix