Memiontec Holdings Ltd. · SGX:TWL
Memiontec — Investor Presentation (April 2021)
43 slides from Memiontec's investor presentation, April 2021
Slide 1: Corporate Presentation 2021
CORPORATE PRESENTATION 2021
Slide 2: Contents
CONTENTS 1. BUSINESS OVERVIEW 2. COMPETITIVE STRENGTHS 3. FINANCIAL PERFORMANCE 4. PROSPECTS 5. BUSINESS STRATEGIES & FUTURE PLANS 6. KEY INVESTMENT HIGHLIGHTS 2
Slide 3: 1. Business Overview
weMee® si wat MEMIONTEC Membrane lonexchange Technology 1. BUSINESS OVERVIEW
Slide 4: Memiontec – Corporate Structure
MEMIONTEC – CORPORATE STRUCTURE Newly incorporated in 2020
Slide 5: Geographical Location and Principal Activities
MEMIONTEC GEOGRAPHICAL LOCATION AND PRINCIPAL ACTIVITIES eS e ry P= E. ty : SINGAPORE MIT Water - Design, MPL - TSEPC and OMS PTMI- TSEPC, Water management procurement and fabrication services, TOOT, BOOT and OMS (including of water system and TSEPC M Water - Sales and distribution of component sale
Slide 6: Operating Track Record of Over 29 Years
OPERATING TRACK RECORD OF OVER 29 YEARS 11 Commissioned 1st BOOT project Commenced Expanded sales Upgraded to ME11 L5 BCA Built award-winning Singapore SME 1000 Awarded S$33.2M operations in overseas contractor registration Semakau floating Ranked Companies contract by PUB – Tuas Singapore wastewate
Slide 7: Innovative Technology Producing Environmentally Green & Near Zero Discharge Solution
INNOVATIVE TECHNOLOGY PRODUCING ENVIRONMENTALLY GREEN & NEAR ZERO DISCHARGE SOLUTION Pure / Ultrapure water Meet local government Waste Water quality discharge water requirement FEED CUSTOMERS • Agro SOURCE • Power Plant Rivers • Real Estate Lakes • Pulp & Paper Wells • Food & Beverage Reservoirs •
Slide 8: A One-Stop Integrated Water Technology Total Solution Provider
A ONE-STOP INTEGRATED WATER TECHNOLOGY TOTAL SOLUTION PROVIDER - PROCESS, DESIGN & ENGINEERING DRIVEN FILTRATION & MEMBRANE Consulting TECHNOLOGY After Sales Maintenance Planning & Services Brackish Water Reverse Osmosis System MEMIONTEC Operations Design & (TOOT, BOOT) CAPABILITIES
Slide 9: Our Business Model Creating Sustainable Value for Shareholders
OUR BUSINESS MODEL CREATING SUSTAINABLE VALUE FOR SHAREHOLDERS Redefined business model since 2017 TSEPC of water OMS of water treatment treatment plants plants o Water/wastewater o Ongoing services for treatment solutions water plants owned, built o Water recycling solution and existing PUB works o
Slide 10: Process & Design Capabilities Across Municipals & Diverse Industries
PROCESS & DESIGN CAPABILITIES ACROSS MUNICIPALS & DIVERSE INDUSTRIES ter TSEPC project: Replacement of UF Membranes at Tuas South Desalination Plant, Singapore. BOOT project: 40%-owned Water treatment plant at Hutan Kota, Jakarta. 10
Slide 11: A Diverse & Established Customer Base
A DIVERSE & ESTABLISHED CUSTOMER BASE Customers over the past 20 years: SINGAPORE INDONESIA CHINA & GLOBAL Public Sector Public Sector M i c r o e l e c t ro n i c s , M a n u fa c t u r i n g , F o o d & O t h e r I n d u st r i e s M i c r o e l e c t ro n i c s , Po we r, Re f i n er y, Pa l m o
Slide 12: Quality Certifications, Material Licences & Awards
Q U A LI TY C ERTI F I C ATION S, M ATER IA L LI C EN C ES & AWA R D S High Safety Standards • ISO 45001:2018 • bizSAFE Star Quality Assurance • ISO 9001: 2015 Material Licences • BCA - ME02, ME05, ME11 and SY05 (Singapore) • BCA - General Builder Class 1 (Singapore) • Class B2 and B1 Class construc
Slide 13: NEA Wins Global Engineering Award for Semakau Offshore Landfill
IN NOVEMBER 2019, NEA WINS GLOBAL ENGINEERING AWARD FOR SEMAKAU OFFHSORE LANDFILL FOR ENGINEERING CONSTRUCTION EXCELLENCE 13
Slide 14: More BOOT Investments & TSEPC - Indonesia
MORE BOOT INVESTMENTS & TSEPC - INDONESIA 1 2 TOOT BOOT 1 • Hutan Kota, Jakarta. • Waduk Pluit, Jakarta. 3 • Under operations - 25 yrs from • Under operations - 25 yrs from Nov Dec 2019. 2018. Pekan Baru • Our interest: 40%. • Our interest: 40%. Jambi 3 BOOT 2 Palembang Makassar 1 2 BOOT/TOOT • Peka
Slide 15: Our BOOT Project, Jakarta Indonesia
OUR BOOT PROJECT, JAKARTA INDONESIA (BUILD-OWN-OPERATE-TRANSFER) • Location: Hutan Kota, Jakarta • Construction completed: August 2019 • Our Interest: 40% (PT JUP: 60%) • Concessionary period: 20 + 5 years from 2019 • Water selling price: Subject to adjustment every 2 years • Sales of water: Since D
Slide 16: BOOT Project
BOOT PROJECT Flowrate in 2020 ➔ 180-200 ℓ/s, will increase to 350-450 ℓ/s in 2021 16
Slide 17: Our TOOT Project, Jakarta Indonesia
OUR TOOT PROJECT, JAKARTA INDONESIA (TRANSFER-OWN-OPERATE-TRANSFER) • Location: Waduk Pluit, Jakarta • Upgrading completed: 2018 • Our Interest: 40% (PT JUP: 60%) • Capacity: up to 2,500 m3/day • Concession period: 25 yrs from 2018 • Sales of water: Since November 2018 17
Slide 18: New BOOT Project on Hand, Pekanbaru Indonesia
NEW BOOT PROJECT ON HAND, PEKANBARU INDONESIA • Location: Pekanbaru, Riau Province • Construction period: 2021 to 2026 • Our Interest: 15% (PT PP: 80%, PT EP: 5%) • Concessionary period: 25 years from 2021 • Sale of water: From 2021 (Existing facility), 2026 (New facility) • Capacity: Existing facil
Slide 19: 2. Key Competitive Strengths
2. KEY COMPETITIVE STRENGTHS 19
Slide 20: Key Competitive Strengths
KEY COMPETITIVE STRENGTHS 1 One-stop integrated total 2 Diversified revenue and income 3 Strong regional presence in solution provider in the water streams the water treatment industry treatment industry From different segments and diverse Singapore, Indonesia and the PRC Provides quality, cost effe
Slide 21: Key Competitive Strengths
KEY COMPETITIVE STRENGTHS 4 Proven track record of over 20 years 5 Qualified, experienced and competent management Gives us an edge in the water industry, which team has high entry barriers in Singapore and With extensive experience, technical expertise and business Indonesia relationships with loca
Slide 22: 3. Financial Highlights
3. FINANCIAL HIGHLIGHTS FY 31 DECEMBER 2020 22
Slide 23: 2020 Key Developments & Performance
2020 KEY DEVELOPMENTS & PERFORMANCE - Successful IPO on 5 March 2020. GP Margin - SUBSTANTIAL RECOVERY from COVID-19 impact since Rev (S$’m) Revenue and GP Margin (%) 2H2020. FY2018 – FY2020 34.6 - RECORDED REVENUE in FY2020 at S$34.6m (2019: 40 29% 3-Year CAGR = 19% 30% 29.5m). 35 0.2 29.3 25% - 3-
Slide 24: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS POSITIVE GROWTH FROM FY2019 Movements (FY2020 vs FY2019) P&L PERFORMANCE(S$’000) FY2016 FY2017 FY2018 FY2019 FY2020 Amount % Revenue 16,067 20,825 24,456 29,305 34,606 5,301 18% Gross profit margin 23% 19% 29% 15% 15% - - Profit before income tax 1,339 925 5,464 567 1,687 1,
Slide 25: Revenue Performance
REVENUE PERFORMANCE 3-YEAR CAGR OF 19%, GEOGRAPHICALLY DIVERSIFIED Total Revenue (S$M) Revenue by Business Segment • Revenue 3-year CAGR = 2% 4% 19%. 34.6 TSEPC 18% 29% • Higher contribution from 0.60.1 29.3 OMS TSEPC projects and 6.2 0.1 1.2 FY2020 FY2019 Singapore market. 24.5 Trading 20.8 • Indon
Slide 26: Profit & Loss and Cash Flows
PROFIT & LOSS AND CASH FLOWS HISTORICALLY PROFITABLE; HEALTHY LIQUIDITIY • PAT (incl. IPO exp) – Increase of S$1.0m or 323% in FY2020 compared to FY2019. • Cash flows increase of S$9.06m in FY2020. • PAT (excl. IPO exp) – Increase of S$0.4m or 28% in • Increase due to IPO net proceeds of S$7.0m, ban
Slide 27: Strong Financial Position & Capital Structure
STRONG FINANCIAL POSITION & CAPITAL STRUCTURE FINANCIAL POSITION (S$’000) FY2020 FY2019 FINANCIAL POSITION: TOTAL ASSETS – INCREASED by S$15.4m: Cash and bank balances 14,527 4,901 • INCREASE in CASH & BANK BALANCES by S$9.63m from IPO proceeds and bank borrowings. Total assets 37,464 22,066 • NON-C
Slide 28: Key Performance Indicators – Post Listing Dividends
KEY PERFORMANCE INDICATORS POST LISTING DIVIDENDS DIVIDENDS YIELD (%) 0.2 1.00% 0.15 0.80% 0.60% 0.1 0.40% 0.05 0.20% 0 0.00% FY2019 FY2020 Dividends (Singapore cents/share) Dividend yield • 2020 Dividend Payout – 25% on adjusted • EPS improved by 259% from 0.17 • NAV/share improved by 55% PAT (2019
Slide 29: Order Book
ORDER BOOK Order book includes: 3 new notable TSEPC and OMS projects in Singapore Indonesia secured which are partially supported by 44% overseas funding to local government, which 56% Indonesia commenced in 2021, & 1 BOOT project in Indonesia secured with a joint venture partner, undertaking a Coop
Slide 30: Proposed Dividend Policy
PROPOSED DIVIDEND POLICY Distributed a minimum of 20% of net profit for FY2019 and 25% for FY2020. 20% FY2019 25% 25% (*) These have been fulfilled. FY2020 FY2021 Barring unforeseen circumstances, the proposed dividend payout for FY2021 is expected to be maintained or improved (*). *Proposed dividen
Slide 31: 4. Prospects
weMee® si wat MEMIONTEC Membrane lonexchange Technology 4. PROSPECTS
Slide 32: Indonesia: Thirst for Clean Water
INDONESIA : THIRST FOR CLEAN WATER Indonesia’s Present & Future Water Demand (m3/s) Over 70% of the Clean water supply needs – Jakarta(2) 27 (2017) 41.6 (2030) Nearly 1 of 2 DEMAND population rely on Urban Domestic Demand(3) 190 (2015) 260 (2030) Indonesians lack potentially Industrial Demand(3) 14
Slide 33: Government-Driven Initiatives
GOVERNMENT-DRIVEN INITIATIVES • Private sector investment in the development and maintenance of infrastructure NATIONAL URBAN WATER • To fill the government’s 36.5% funding gap(5) SUPPLY PROJECT • To share knowledge and expertise(5) • The Government aims to achieve universal access to safe water in
Slide 34: Singapore: Water Demand to Almost Double by 2060
SINGAPORE : WATER DEMAND TO ALMOST DOUBLE BY 2060 FROM CURRENT 430 MILLION GALLONS DAY (8) MUNICIPAL SECTOR: To increase water recycling & desalination capacity to supply 85% of water needs by 2060(9) COLLECTING WATER Water catchment areas will cover To maintain, upgrade and expand 90% of land area
Slide 35: 5. Business Strategies & Future Plans
5. BUSINESS STRATEGIES & FUTURE PLANS 35
Slide 36: Business Strategies & Plans – Maximising Shareholders' Value
BUSINESS STRATEGIES & PLANS MAXIMISING SHAREHOLDERS’ VALUE 1 EXPANSION IN EXISTING MARKETS 2 EXPANSION INTO NEW GEOGRAPHICAL SINGAPORE MARKETS • Public tenders for larger scale projects. • Southeast Asia, and beyond, with strong • Industrial projects in TSEPC space for MNCs. demand for water. • OMS
Slide 37: Invest in More TOOT & BOOT Projects
5 INVEST IN MORE TOOT & BOOT PROJECTS Government or Government Linked Agency BOOT agreement Equity support/JVA Project Financing & security Sponsor agreements Company Lenders (Memiontec Group) (Co-owned by Memiontec) Dividend income Lumpsum turnkey contract OMS contract (water Water offtake agreemen
Slide 38: Key Focus by Business Segment – TSEPC
BUSINESS STRATEGIES & PLANS KEY FOCUS BY BUSINESS SEGMENT TSEPC 1. TSEPC is main revenue driver for the Group. 1.1 Singapore segment (matured market): - Opportunities for NEWater plants & upgrading works. - 2020 - Won some decent size TSEPC projects during the year. - Future - Prudently select and s
Slide 39: Key Focus by Business Segment – OMS
BUSINESS STRATEGIES & PLANS KEY FOCUS BY BUSINESS SEGMENT OMS • OMS revenue mainly arises from Singapore market, SOW & Existing BOOT/ TOOT (3 projects): more opportunities for maintenance of WTP of Investments • BOOT under a JV (40% owned) at Hutan Kota, durations of 1-3 years. Jakarta, Indonesia –
Slide 40: 6. Key Investment Highlights
6. KEY INVESTMENT HIGHLIGHTS 1. A ONE-STOP INTEGRATED WATER TECHNOLOGY TOTAL SOLUTIONS PROVIDER WITH A PROVEN 20-YEAR TRACK RECORD 2. DIVERSIFIED YET SYNERGETIC BUSINESS SEGMENTS 3. RECURRING INCOME FROM EQUITY INVESTMENT IN BOOT 4. DIVERSE & ESTABLISHED CUSTOMER BASE IN VARIOUS CORE INDUSTRIES 5. G
Slide 41: Disclaimer
DISCLAIMER This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in Memiontec Holdings Ltd. (“Memiontec” or “Company”, and together with its subsidiaries, the “Group”) in Singapore or any
Slide 42: Footnotes
Footnotes 1. The information was extracted from the press release titled "Six Million Indonesians Will Gain Access to Water at Home" of the World Bank at https://www.worldbank.org/en/news/press- release/2018/06/06/six-million-indonesians-will-gain-access-to-water-at-home, last accessed on 2 December
Slide 43: Thank You!
Disclaimer Statement: THANK YOU! This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and
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