ASL Marine Holdings Ltd. · SGX:A04
ASL Marine — Debt Investor Presentation (October 2018)
33 slides from ASL Marine's debt investor presentation, Oct 29, 2018
Slide 1: Informal Noteholders Meeting
ASL MARINE HOLDINGS LTD. Informal Noteholders Meeting 29 October 2018
Slide 2: Important Notes
Important Notes • This informal meeting is being convened for the purpose of providing Noteholders (i) with a recap on the Group’s business climate and financial performance for the past financial year; (ii) an update on the discussions with the principal bankers on possible additional working capit
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 02 Recap on the Previous Meeting 03 Updates 04 Proposal to Noteholders 05 Looking Ahead 06 Q&A
Slide 7: Recap On The Previous Meeting
Recap On The Previous Meeting 7
Slide 8: Recap
Recap 1 Business Climate – cascading effect of the industry. 2 The Group has been generating substantial EBITDA annually. The Group is viable but needs time to recover from the impact of cancellation of orders 3 of S$199m. 4 The Group will need time to fully meet its bank and note obligations. 5 The
Slide 9: Business Climate
Business Climate 1. Market has stabilised but has not recovered. 2. Cascading effect of the struggles of companies in the industry resulting in a credit squeeze. • Creditors are pressuring companies to repay the monies owed and tightening credit terms. • Non-renewal of revolving credit facilities by
Slide 10: Historical 5-Years EBITDA
Historical 5-Years EBITDA ASL Marine Holdings Ltd and its FY2014 FY2015 FY2016 FY2017 FY2018 Total Over Subsidiaries Consolidated Profit or Loss (S$'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 1,68
Slide 11: Impact of Order Cancellations
Impact of Order Cancellations The Group is viable and is healthy except for the impact from the cancellation of orders. 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
Slide 12: Existing Loan Payment Obligations
Existing Loan Payment Obligations Current Loan Obligations Assuming S$65m of net YE 30 Jun 19 YE 30 Jun 20 YE 30 Jun 21 YE 30 Jun 22 YE 30 Jun 23 YE 30 Jun 24 YE 30 Jun 25 YE 30 Jun 26 operating cashflows is Loan Obligations (S$'000) Year 1 to 8 Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Slide 13: Project and Working Capital Lines
Project and Working Capital Lines The Group needs banking lines to meet the project requirements of shipbuilding projects. Contract signing Steel cutting Keel laying Launching Delivery Milestones Around 18 months to complete Shipbuilding Support from banks needed on bid bonds, performance bonds, r
Slide 14: Project and Working Capital Lines
Project and Working Capital Lines Contract signing Delivery Milestones Around 2-3 months to complete Shiprepair Trade Trade lines approximating three months of business is needed for ship repairs. Lines This approximates the average time needed for ship repairs. With the trade lines, the Group w
Slide 15: How You Can Help
How You Can Help Banks Notes Re-profile 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 & t
Slide 16: Updates
Updates 16
Slide 17: Discussions with Lenders
Discussions with Lenders Active discussions with several Lenders Ongoing discussions with the principal lenders and several other lenders. Supportive of the Group and are willing to continue to extend help. Updates Concerned that banks’ sole support is insufficient to enable the Group to meet
Slide 18: Proposal to Noteholders
Proposal to Noteholders 18
Slide 19: How You Can Help
How You Can Help Banks Notes Reprofile of loans to match operating cashflows of Extend maturity by 5 years from current maturity. the Group. Lower principal sum amortisation to 1% p.a. Extend project financing and trade lines of S$150m to scale up the shipyard business. (such as invoice Re
Slide 20: How You Can Help (Series 006)
How You Can Help (Series 006) • The Group needs time to generate cash flows to bring down the debts to a sustainable level without a haircut and would like the support of the Noteholders on the following proposal: Existing Proposed Par Value In lots of S$250,000 In lots of S$50,000 Principal In Full
Slide 21: How You Can Help (Series 007)
How You Can Help (Series 007) • The Group needs time to generate cash flows to bring down the debts to a sustainable level without a haircut and would like the support of the Noteholders on the following proposal: Existing Proposed Par Value In lots of S$250,000 In lots of S$50,000 Principal In Full
Slide 22: Illustration - Impact of Proposal
Illustration - Impact of Proposal Impact of Action Plans on Existing Loan Obligations Assumptions used in Illustration: YE 30 Jun 19 YE 30 Jun 20 YE 30 Jun 21 YE 30 Jun 22 YE 30 Jun 23 YE 30 Jun 24 YE 30 Jun 25 YE 30 Jun 26 YE 30 Jun 27 Loan Obligations (S$'000) Year 1 to 9 Total Year 1 Year 2 Year
Slide 23: Merits of the Proposal
Merits of the Proposal 1 No hair cut. 2 No debt-to-equity conversion. 3 Value of Notes may improve after refinancing is completed. 4 Sharing of upside / capital gain (from the exercise of warrants). Key objective set by Management: Preserve Value for ALL stakeholders.
Slide 24: All Stakeholders Have Been Asked to Extend Support
All Stakeholders Have Been Asked to Extend Support Existing Shareholders Management Team Lenders Noteholders Rights issue in FY2016. The Management of the Group has a) Re-profile tenure of loans to a) Extend maturity by 5 years amount raised was S$25.17 spearheaded the cost reduction match the opera
Slide 25: Looking Ahead
Looking Ahead 25
Slide 26: Looking Ahead
Looking Ahead Shipbuilding Shiprepair Shipchartering The Group continues to exercise Expected increase in shiprepair jobs as Focus on maximising utilisation of caution as it selects the end- customers are looking to reactivate / vessels and improving charter customers based on repair existing
Slide 27: Looking Ahead
Looking Ahead • The principal lenders to re-profile existing loans to match operating cashflows and provide additional working capital lines to help the Group generate more cash flows. • Cashflows generated over the next few years will provide more monies to the Group that will be useful for the eve
Slide 28: Formation of ISC
Formation of ISC • The Group wishes to actively engage the Noteholders to address your concerns on the proposal. • SIAS has agreed to take the lead role in the setting up of the Informal Steering Committee (“ISC”) and in facilitating its work moving forward. • Interested Noteholders have volunteered
Slide 29: Next Steps
Next Steps • Next informal meeting – By end November 2018. • The Group will keep Noteholders updated on the ongoing discussions with the principal bankers. The Group looks forward to your support 29
Slide 30: Q&A
Q&A 30
Slide 31: Q&A
Q&A Please state your name before asking your question 1 2 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 (October 2018) on 6ix