ASL Marine Holdings Ltd. · SGX:A04
ASL Marine — Shareholder Meeting (November 2016)
23 slides from ASL Marine's shareholder meeting presentation, Nov 28, 2016
Slide 1: Annual General Meeting 28 Nov 2016
Annual General Meeting 28 Nov 2016
Slide 2: Presentation Outline
1. Business Highlights 2. Financial Highlights PRESENTATION OUTLINE 3. Business Outlook & Strategy 4. Market Challenges on Liquidity 5. Restructuring Framework for continuity 2
Slide 3: Business Highlights
Business Highlights § Resilience to market volatility - profitable since IPO in 2003 § Relatively low revenue contribution from troubled oil & gas industry with core business rests in Transportation and Infrastructure & Construction related industries - Revenue contribution for FY2016: 50% -Transpor
Slide 4: Revenue by Industry (Group)
Revenue by Industry (Group) FY2016 Revenue FY2016 Revenue Others by Industry 2.5% by Geography Oil & Gas 10.9% United States/ Others 27% Singapore Infrastructure & 39% Constuction 36.2% Transportation 50.4% Europe 22% Indonesia Rest of Asia 8% FY2016 Revenue 4% by Business Segments Engineering FY201
Slide 5: Chartering Fleet of Vessels
Chartering Fleet of Vessels Low Exposure to OSV Market Ø 229 vessels in fleet (2016), vs. 204 (2015), mostly Tugboats and Barges, and 7 OSV (1 AHT & 6 AHTS), 5 Landing Crafts and 2 Chemical Tankers. Ø Our Tugboats, Barges, grab dredger and workboats are main contributors of Ship Chartering segment.
Slide 6: Orderbook: Shipbuilding
Orderbook Shipbuilding Ø Shipbuilding orderbook of $223 million pertains to 22 vessels with progressive deliveries up to 4Q FY2018 6
Slide 7: Orderbook: Shipchartering
Orderbook Shipchartering Ø Shipchartering orderbook represents contracts won that are longer than 12 months, which contributed to 23% of total Shipchartering revenue during FY2016 7
Slide 8: Presentation Outline
1. Business Highlights 2. Financial Highlights PRESENTATION OUTLINE 3. Business Outlook & Strategy 4. Market Challenges on Liquidity 5. Restructuring Framework for continuity 2
Slide 9: Financial Highlights
Financial Highlights Inc/ ($ million) FY2016 FY2015 (dec) Turnover 364.4 184.2 97.9 Gross Profit 50.5 38.1 32.5 Gross Profit Margin (%) [1] 13.8% 20.7% (6.8%) Net Profit attributable to Shareholders 2.0 7.9 (75.0) Net Profit Margin (%) [1] 0.5% 4.3% (3.8%) EBITDA 79.8 66.2 20.6 EBITDA Margin (%) [1]
Slide 10: Financial Position
Financial Position Ø Current assets ($ million) 30 Jun 16 30 Jun 15 Chg (%) increased mainly Non-Current Assets 650.1 625.7 3.9 from construction work-in-progress, Current Assets 625.6 582.8 7.3 inventory and trade Total Assets 1,275.7 1,208.5 5.6 receivables. Current Liabilities 596.9 439.7 35.8 Ø
Slide 11: Debt Maturity Profile
Debt Maturity Profile [A] Bonds issued are due in March 2017 ($100 million) and October 2018 ($50 million). [B] Project financing (short term loans and trust receipts) are used to finance Shipbuilding projects which will eventually paid off upon delivery of vessels [C] General loans are made up of s
Slide 12: Presentation Outline
1. Business Highlights 2. Financial Highlights PRESENTATION OUTLINE 3. Business Outlook & Strategy 4. Market Challenges on Liquidity 5. Restructuring Framework for continuity 2
Slide 13: Business Outlook & Strategy: Shipbuilding and Shiprepair
Business Outlook & Strategy Shipbuilding Ø Competitive edge § Yard presence in Indonesia - growing local content requirement for Indonesian government projects § Diverse experiences – Long and strong track record on building wide range of vessels from tankers, tugs & barges, dredgers to OSV etc., wh
Slide 14: Business Outlook & Strategy: Shipchartering
Business Outlook & Strategy Shipchartering Ø Recent new order wins will boost utilization of our tug & barge fleet. Ø Relatively low exposure to current weak offshore market. Ø Viable core chartering business – supports the infrastructure and transportation business in the region. Ø Focus on increas
Slide 15: Business Outlook & Strategy: Engineering (Dredging)
Business Outlook & Strategy Engineering (Dredging ) Ø Segment deals mostly in the marine infrastructure & construction, dredging & land reclamation which are not heavily dependent on oil prices. Ø Focus on driving sales of components & services. Ø Longer term strategy is to grow this segment, given
Slide 16: Overall Outlook Positive
Overall Outlook Positive Ø Low concentration to beleaguered offshore oil & gas industry Ø Core business to marine infrastructure & transportation will sustain our business in this challenging environment Ø Immediate outlook remain positive Ø Longer term outlook is bright, given the optimism in globa
Slide 17: Presentation Outline
1. Business Highlights 2. Financial Highlights PRESENTATION OUTLINE 3. Business Outlook & Strategy 4. Market Challenges on Liquidity 5. Restructuring Framework for continuity 2
Slide 18: Market Challenges On Liquidity
Market Challenges On Liquidity § Ship chartering: • Drop in charter rates and demand for OSVs, tugboats and barges • Utilisation rate has fallen to approx 51% as of 30 June 2016 (2015: 57%) Low Oil Prices has § Ship repair and conversion: led to lower • No upcoming conversion jobs for OSVs revenues
Slide 19: Presentation Outline
1. Business Highlights 2. Financial Highlights PRESENTATION OUTLINE 3. Business Outlook & Strategy 4. Market Challenges on Liquidity 5. Restructuring Framework for continuity 2
Slide 20: Stakeholders
Stakeholders • 2-for-1 rights issue to raise fresh capital of approx $25m • Received $16.9m from major • Review of clients on their shareholders, being full subscription profitability to assess business on their right entitlements viability • Indicative timeline: Shareholders • Tighter working capit
Slide 21: Strategies employed to support the Company
Strategies employed to support the Company § Decreasing admin expenses from $25.6m in FY 2015 to $23.4m in FY 2016 Cost through the conscientious efforts taken to rationalise costs Management § The re-organization exercise conducted in May 2016 in the Engineering division is expected to translate in
Slide 22: Summary
Summary § A strong company that remains viable in challenging market conditions with positive business outlook supported by diversified industry exposure § Shares trading at attractive valuation by Price to Book terms as compared to industry peers § Supportive stakeholders assisting in: - Additional
Slide 23: Thank You Q&A
THANK YOU Q&A
ASL Marine Holdings — Shareholder Meeting (November 2016) on 6ix