Mencast Holdings Ltd. · SGX:5NF
Mencast — Investor Presentation (May 2013)
42 slides from Mencast's investor presentation, May 17, 2013
Slide 1: Mencast Holdings Ltd. Investor Presentation 17 May 2013
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute or form any part of an offer, invitation or recommendation to subscribe for, retain, or purchase any securities in Mencast Holdings Ltd. Information in this presentation, or anything contained in it, will not form the basis of any c
Slide 3: Contents
Contents • Corporate Video • Group Overview • Operations Review • Financial Review - FY2012 and 1Q2013
Slide 4: Corporate Video
Corporate Video 4
Slide 5: Group Overview
Group Overview
Slide 6: Introduction to Mencast
Introduction to Mencast • MRO (“Maintenance, Repair & Overhaul”) to Oil & Gas and Marine Industry • Established in 1981, with a reputation for reliability, quality and service built up over 30 years experience • First Company to list on SGX Catalist (June 2008) and first company to upgrade to SGX Ma
Slide 7: Brand Architecture
Brand Architecture Expert solutions, lasting relationships 7
Slide 8: Group Organizational Structure
Group Organizational Structure 8
Slide 9: Strategic & Substantial Shareholders
Strategic & Substantial Shareholders Glenndle Sim Chua Kim Choo Sim Wei Wei & Sim Soon Ying Profile Stake Profile Stake Profile Stake Executive Chairman & CEO 22.13% Mother of Glenndle Sim 12.21% Siblings of Glenndle Sim 8.55% Gay Chee Cheong, Chua Siok Lan Wong Boon Huat & Ni Wei Ming Profile Stake
Slide 10: Board of Directors
Board of Directors Board of Directors Name Position Role & Responsibilities / Profile Highlights Glenndle Sim Executive Chairman & Chief Responsible for overall management, strategic planning, operations and marketing of Executive Officer Mencast Group. Graduated from NUS with Bachelor in Busine
Slide 11: Board of Directors
Board of Directors Mencasb PARTNER PERFECT Mencase PASSINER PERFECT From taf to right: Ho Chew Thim, Wong Boon Huat, Ng Chee Keong, Sim Soon Ngee Glenndie and Sunny Wong Fook Choy 11
Slide 12: Key Management
Key Management Key Management Name Position Role & Responsibilities / Profile Highlights Rodolfo S Alviedo Chief Financial Officer Responsible for accounting and finance functions of Mencast Group. Jr, Jojo Amassed 20 years of international audit and advisory experience across Singapore, Philipp
Slide 13: Key Management
PARTNER PERFECT From left to right: Brian Heng Teck Kin, Francis Ong Yong Chye, Cheng Shao Rong, Edwin Tan Eng Hoe, Lim Eng Sim, Sim Wei Wei, Jojo Alviedo, Jack Phua Poh Cheng, and Ho Gim Hai 13
Slide 14: Mission & Strategy
Mission & Strategy Most admired MRO Vision partner and employer in the world “BHAG Goals $1 Billion $50+ million Market Cap. Net Profit 2020” Big Hairy Audacious Goal Revenue Margins Strategy Organic High utilization Capital Spread Productivity and High ROCE & ROE M&A into adjacent processes Low WAC
Slide 15: Roadmap: One Billion Market Cap
Roadmap: One Billion Market Cap. Mencast PARTNER PERFECT KEY DRIVERS Revenue Growth Strong demand for MRO from Singapore and new markets. US$2 billion revenue potential from identified markets. $50m + Margins - Subject to market conditions, the Group targets long term _ net margin of over 10% i Mark
Slide 16: Operating Locations
Operating Locations Built-Up Land Operating Locations Descriptions Area Area (sqm) (sqm) No. 7 Tuas View Circuit Sterngear equipment manufacturing 6,698 8,501 Singapore 637642 No. 12 Kwong Min Road Precision machining and energy operations 2,946 4,623 Singapore 628714 No. 39 Tuas Avenue 13 Sterngear
Slide 17: Mencast Procurement Centre Outreach
Mencast Procurement Centre Outreach Singapore Site Office Place Orders Solicit Orders External Customers Mencast Strategic Supply Network (including Procurement Centre strategic partners) Local Provide Project Schedule (ASEAN, India, China & Middle East) East Asia Support Overseas Local (Singapore)
Slide 18: Operations Review
PARTNER PERFECT Operations Review
Slide 19: Integrated MRO Services
Integrated MRO Services Mencast Partner Perfect Marine Offshore & Engineering • Customized sterngear • Inspection, • Oil Sludge / Slop manufacturing maintenance & reclamation fabrication of offshore • Reclaiming and structures reconditioning of • Hydro cleaning oil & gas sterngear • Topside (rope ac
Slide 20: Key Customers
Key Customers The relationships established with the key customers of Mencast have allowed Mencast to secure contracts averaging 3 to 5 years. Supporting Customers Across Offshore, Marine and Oil & Gas Sectors Marine Offshore & Engineering 20
Slide 21: Marine
MARINE Principal Services = Provide quality propeller repair and modification services = Ship inspection, repair, maintenance, engineering and fabrication works = Marine project management works Services Capability = Customizedmanufacturing, mobile reclaiming and reconditioning of hull parts “® Cust
Slide 22: Marine
Mencasb MARINE PARTNER PERFECT 22
Slide 23: Marine
MARINE PARTNER PERFECT 23
Slide 24: Marine
MARINE PARTNER PERFECT 24
Slide 25: Offshore & Engineering
OFFSHORE & ENGINEERING Principal Services = Inspection, maintenance and fabrication of offshore structures = Onshore structures-related services and engineering = In-house capabilities to manufacture metal precision components Services Capability = Fabricate complex skids, filtration membrane and pr
Slide 26: Offshore & Engineering
OFFSHORE & ENGINEERING Nw Mencasb PARTNER PERFECT 26
Slide 27: Offshore & Engineering
ALI OFFSHORE & ENGINEERING Mencasb PARTNER PERFECT
Slide 28: Offshore & Engineering
OFFSHORE & ENGINEERING PARTNER PERFECT
Slide 29: Energy Services
Slide 30: Energy Services
ENERGY SERVICES PARTNER PERFECT
Slide 31: Energy Services
ENERGY SERVICES SARTNERSEFIET
Slide 32: Energy Services
Amir ENERGY SERVICES Mencasb PARTNER PERFECT Wi 7 Mhlea ai el ran
Slide 33: Marine, Offshore & Engineering, Energy Services
Ylencasc MARINE Mlencasb OFFSHORE & ENGINEERING Mencask =~“ ENERGY SERVICES 33
Slide 34: Financial Review - FY2012 & 1Q2013
Financial Review - FY2012 & 1Q2013
Slide 35: 2012 & 1Q2013 Group Performance
2012 & 1Q2013 Group Performance In FY2012 Mencast delivered record revenue, net profit and free cashflow, while for 1Q2013, Mencast registered an 81% growth in net earnings. S$’000 Audited Unaudited FY FY Change (%) 1Q 1Q Change (%) 2012 2011 2013 2012 Revenue 84,086 56,358 49.2 18,093 15,359 17.8 G
Slide 36: 2012 & 1Q2013 Group Performance
2012 & 1Q2013 Group Performance Maintaining profitability and interest servicing ability S$’000 Growth (%) FY2012 vs. FY2011 1Q2013 vs. 1Q2012 90 Revenue 49.2 17.8 Gross Profit 17.5 37.6 80 Operating Profit 27.2 80.0 EBITDA 34.7 71.8 70 Profit before Tax 24.4 95.1 Net Profit 30.3 81.3 60 Key Ratios
Slide 37: Group's Financial Position
Group’s Financial Position S$’000 Change (%) 31 Mar 2013 31 Dec 2012 31 Dec 2011 Cash and Bank Balances -47.1 10,422 19,716 9,451 Total Assets 1.8 198,640 195,146 137,225 Total Liabilities 0.6 105,428 104,824 80,067 Total Debt * 10.6 67,009 60,575 39,343 Net Debt 38.5 56,587 40,859 29,892 Total Equi
Slide 38: Consistent Revenue Growth
Consistent Revenue Growth (Eight Consecutive Years of Growth) FY2005 – FY2012 CAGR Growth: 36.0% 84,086 56,358 32,031 25,063 26,274 18,876 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Marine Services Offshore & Engineering Services Energy 2,891 34,880 18,259 38,099 46,315 25,063 26,274 32,031 18,876 FY
Slide 39: Consistent Profit Growth
Consistent Profit Growth Gross Profit (S$’000) 8,663 11,285 12,439 16,037 22,543 26,492 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Net Profit (S$’000) 4,816 5,803 7,033 8,505 10,236 13,342 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 39
Slide 40: Evolution of Business Mix
Evolution of Business Mix • Marine has a lower materials component than Offshore and Engineering, and thus higher gross margins • Offshore and Engineering is still very lucrative and often has large contract values • Energy Services has potential to generate high margins REVENUE GROSS MARGIN 55% 41%
Slide 41: Revenue Growth Outlook 2013
Revenue Growth Outlook 2013 • Growth in all business segments (i.e. Offshore & Engineering, Marine and Energy), particularly Energy • Strong opportunities from Middle East, Batam, Thailand and Vietnam, each of which has revenue potential 2-3x Singapore • Targeting revenue to narrow gap relative to f
Slide 42: Thank You!
THANK YOU! MENCAST HOLDINGS LTD. 42E Penjuru Road, Mencast Central Singapore 609161 www.mencast.com.sg