Ann Joo Resources Bhd. · MYX:ANNJOO
Ann Joo Resources Bhd — Shareholder Meeting (June 2023)
25 slides from Ann Joo Resources Bhd's shareholder meeting presentation, Jun 19, 2023
Slide 1: 27th Annual General Meeting
27th ANNUAL GENERAL MEETING Presents by: Dato’ Lim Hong Thye, Group Managing Director 19 June 2023
Slide 2: Part 01: 2022 Review
Part 01 2022 Review 2
Slide 3: Group Performance Highlights (2022 vs 2021)
GROUP PERFORMANCE HIGHLIGHTS (2022 VS 2021) PROFITABILITY ADVERSELY IMPACTED BY NEGATIVE TIME-LAG EFFECTS OF HIGH MATERIAL & FUEL COSTS AMIDST CHINA’S DEPRESSED STEEL MARKET REVENUE (LOSS)/PROFIT AFTER TAX NET ASSETS NET GEARING RM3,035M (RM133M) RM1,193M 0.92X LAT Margin: -4.38% (2021: RM1,323M) (2
Slide 4: Group Performance Highlights (2022 vs 2021)
GROUP PERFORMANCE HIGHLIGHTS (2022 VS 2021) REVENUE (RM’Mil) PRE-TAX PROFIT (RM’Mil) 1,556 182 1,479 1,251 72 74 1,145 (275) 1H2022 1H2021 2H2022 2H2021 1H2022 1H2021 2H2022 2H2021 RM’Million 1H2022 1H2021 2H2022 2H2021 Revenue 1,479 1,251 1,556 1,145 Pre-Tax Profit/(Loss) 72 182 (275) 74 Net Profit
Slide 5: International Steel Prices vs Malaysia Steel Prices
INTERNATIONAL STEEL PRICES VS MALAYSIA STEEL PRICES 2022 : STEEL PRICE EDGED DOWN ON WEAK CHINA’S ECONOMIC GROWTH & STEEL DEMAND 2021 : STEEL PRICE UPTREND SUPPORTED BY MARKET RECOVERY & CHINA’S STIMULUS POLICIES MALAYSIA vs INTERNATIONAL STEEL PRICE (RM/MT) Malaysia Rebar Price (RM/mt delivered) Ch
Slide 6: Key Raw Material Prices – Iron Ore & Scrap
KEY RAW MATERIAL PRICES – IRON ORE & SCRAP IRON ORE & SCRAP PRICES FELL IN 2022, MOVING IN TANDEM WITH STEEL PRICES, MAINLY INFLUENCED BY WEAKER-THAN-EXPECTED STEEL DEMAND IN CHINA Iron Ore Price (2021-2022) Scrap Price (2021-2022) USD/MT Scrap HMS, East Asia Import CFR $/t USD/MT IODEX 62% Fe / Nor
Slide 7: Coking Coal & Coke Price Trends
COKING COAL & COKE PRICE TRENDS WEAK STEEL MARKET COOLED GEOPOLITICAL CONFLICTS & ENERGY CRISIS-DRIVEN COAL PRICE SURGE USD/MT 2021-2022 Premium Hard Coking Coal (PHCC) & Met Coke Price 800 1Q2022 Price hike on seasonal factors & Russia- 700 Ukraine Conflicts 2021 Aug-Dec 2022 600 Coal prices surged
Slide 8: 2022 Market Review & Challenges
2022 MARKET REVIEW & CHALLENGES STEEL MARKET BATTLES STRONG EXTERNAL HEADWINDS & CHALLENGES Subdued Lacklustre infra & ➢ Public funding constraints construction activities ➢ Lack of mega infrastructure project rollout Domestic Demand Mounting cost pressures ➢ BNM hiked OPR by 100 bps to 2.75% in 202
Slide 9: Review of 2022 Strategic Initiatives
REVIEW OF 2022 STRATEGIC INITIATIVES Proactive Working Capital Financial Performance Aggressive Exports Management ❑ Profitability negatively ❑ Lower Inventory level of ❑ Export tonnage up 30% YoY impacted by Adverse Market RM911 mil (vs 2021: RM1,049 for Upstream Steel Division Conditions & Externa
Slide 10: Part 02: Financial Performance
Part 02 Financial Performance 10
Slide 11: Revenue & Profitability 2022
REVENUE & PROFITABILITY 2022 RECORD REVENUE ATTRIBUTABLE TO HIGHER SALES TONNAGE ERODED MARGIN ON ADVERSE TIME LAG EFFECTS OF HIGH MATERIAL & FUEL COSTS REVENUE (RM’Mil) PROFITABILITY (RM’Mil) PBT/(LBT) PAT/(LAT) 2022 3,035 (203) 2022 (133) 2021 2,396 256 2021 243 2020 1,891 (74) 2020 (100) (162) 20
Slide 12: Long-Term Financial Performance
LONG-TERM FINANCIAL PERFORMANCE 2021 ANN JOO GROUP PROFIT AFTER TAX (RM’Mil) Ann Joo’s Record Profit 2006 2007 Privatisation 2016 2021 AJSB (Malayawata) became China steel China market subsidiary of AJR of AJSB sector reform boosted by 243 pump priming 198 205 2000 Malayawata’s Management 167 149 15
Slide 13: Key Current Assets & Liabilities Position
KEY CURRENT ASSETS & LIABILITIES POSITION Key Current Assets & Liabilities Position (RM’mil) Inventories Net Receivables* Net Borrowings (Trade lines) Net Gearing Ratio 1,325 1,393 1,235 240 1,129 344 1,096 967 971 1,002 957 324 257 857 269 0.92 1,085 0.81 0.78 0.73 0.72 1049 1,096 967 872 971 857 9
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS RM’000 2022 2021 Y-o-Y % 1Q23 INCOME Revenue 3,035.0 2,395.7 ↑ 26.7% 670.7 STATEMENT EBITDA (111.5) 339.2 ↓ 132.9% (9.1) Net Profit/(Loss) (133.1) 242.9 ↓ 154.8% (21.4) Basic EPS (sen) (23.75) 44.88 ↓ 152.9% (3.75) Dividend (sen) - 12.00 ↓ 100.0% - FINANCIAL Inventory 911.3 1,04
Slide 15: Part 03: Industry Outlook
Part 03 Industry Outlook 15
Slide 16: 2023 Market Outlook
2023 MARKET OUTLOOK BEARISH SENTIMENT CLOUDED STEEL MARKET OUTLOOK ADVERSE DOMESTIC MARKET UNFAVOURABLE ECONOMIC CHINA’S SUPPLY-DEMAND CONDITIONS CONDITIONS IMBALANCE Mounting Cost Lack of Fear on Global Economic Rising Production Output vs Pressures Catalyst Slowdown Weak Demand Growth ➢ Steel play
Slide 17: International Steel Prices vs Domestic Steel Price
INTERNATIONAL STEEL PRICES VS DOMESTIC STEEL PRICE DEMAND-SUPPLY IMBALANCE WEIGHED ON STEEL PRICES MALAYSIA vs INTERNATIONAL STEEL PRICE (RM/MT) M’sia Bar Price China Domestic Shanghai Rebar HRB400 Turkey Bar Price China Domestic Shanghai HRC 3.0mm RM/MT 1Q2022 Steel price surged on Apr – Oct 2022 R
Slide 18: Key Raw Material Prices – Iron Ore & Scrap
KEY RAW MATERIAL PRICES – IRON ORE & SCRAP Iron Ore Price (2022-2023) Scrap Price (2022-2023) USD/MT IODEX 62% Fe / North China import CFR USD/MT Scrap HMS, East Asia Import CFR $/t As at As at Scrap HMS, Turkey CFR $/t 16 Jun 23 16 Jun 23 680 220 580 190 160 480 130 380 100 70 280 Jan-21 Jul-21 Jan
Slide 19: Coking Coal & Coke Price Trends
COKING COAL & COKE PRICE TRENDS COKING COAL PRICES EDGED DOWN ON WEAK STEEL DEMAND 2022-2023 Premium Hard Coking Coal (PHCC) & Met Coke Price USD/MT Early 2022 Price surged on 700 Australia’s supply tightness & 2021 Impacts of the Mar 2023 600 Coal prices surged on market Russia-Ukraine Coal prices
Slide 20: Malaysia Long Product Export
MALAYSIA LONG PRODUCT EXPORT Yearly Malaysia Long Products Export Quarterly Malaysia Long Products Export (‘000 MT) (‘000 MT) Export - Billet Export - Ex-China Export- Billet Export - Ex-China Export - Wire rod Export - China Export - Wire rod Export - China Export - Bar Export - Bar 7,298 7,298 7,1
Slide 21: Malaysia Long Product Import
MALAYSIA LONG PRODUCT IMPORT POTENTIAL INFLUX OF IMPORT FROM CHINA AMIDST WEAK CHINA STEEL MARKET Yearly Malaysia Long Products Import Quarterly Malaysia Long Products Import (‘000 MT) (‘000 MT) Import - Billet Import - Ex-China Import - Billet Import - Ex-China Import - Wire Rod Import - China Impo
Slide 22: China Steel Export & Import – Quarterly & Yearly
CHINA STEEL EXPORT & IMPORT – QUARTERLY & YEARLY CHINA SWITCHING FROM IMPORT TO EXPORT ON WEAK DOMESTIC DEMAND & RISING OUTPUT Yearly China Steel Export & Import Quarterly China Steel Export & Import (‘Mil MT) (‘Mil MT) Export - Finished Steel Import - Finished Steel Import - Finished Steel Import -
Slide 23: Part 04: Strategic Direction
Part 04 Strategic Direction 23
Slide 24: Strategic Direction
STRATEGIC DIRECTION PROACTIVE BALANCE SHEET & CASH FLOW MANAGEMENT 1 Place strong emphasis on balance sheet and cash flow management to navigate through this volatile and challenging period EXPORT MARKET EXPANSION 2 Continue to actively export to regional countries, focusing on export of finished pr
Slide 25: Thank You
THANK YOU KEY STEEL INDUSTRY WEBSITES INCLUDE: 1. miti.gov.my 2. steelbb.com 3. mysteel.net 4. seaisi.org 5. worldsteel.org