Westports Holdings Bhd. · MYX:WPRTS

Westports Holdings Bhd — Q2 2014 Earnings Presentation

26 slides from Westports Holdings Bhd's earnings presentation, Jul 23, 2014

1. Slide 1: Westports Holdings Berhad Second Quarter Financial Report

   Westports Holdings Berhad Second Quarter Financial Report ended 30 June 2014 (“2Q 2014”) 23 July 2014

2. Slide 2: Table of Contents

   STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Table of Contents 1. Key Highlights 2. Financial Performance for 2Q2014 and 1H2014 3. Progress Updates 4. Prospects and Outlook 1

3. Slide 3: Disclaimer

   STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Disclaimer This document contains certain forward-looking statements with respect to Westports Holdings Berhad’s (“Westports”) financial condition, results of operations and business, and management’s strategy, plans and objectives for

4. Slide 4: 1. Key Highlights

   1. KEY HIGHLIGHTS

5. Slide 5: Dividend Distribution Highlights

   STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Dividend Distribution Highlights Dividend Distribution Details Distribution Period 1 January 2014 – 30 June 2014 Distribution Type First Interim Dividend Dividend per Share (“DPS”) (sen) 5.10 Entitlement Date 11 August 2014 Payment Date

6. Slide 6: Key highlights of 2Q 2014

   STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Key highlights of 2Q 2014 Total revenue +1.9% YoY Operational revenue +14.8% YoY Financial EBITDA +5.5% YoY Normalised EBITDA +13.5% YoY Performance PAT +2.4% YoY Normalised PAT +11.7% YoY Container throughput +14.0% YoY Operational Con

7. Slide 7: Key highlights of 1H 2014

   STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Key highlights of 1H 2014 Total revenue +3.0% YoY Operational revenue +13.1% YoY Financial EBITDA +12.8% YoY Normalised EBITDA +12.4% YoY Performance PAT +16.7% YoY Normalised PAT +16.2% YoY Container throughput +12.9% YoY Operational C

8. Slide 8: 2. Financial Performance for 2Q2014 & 1H2014

   2. FINANCIAL PERFORMANCE FOR 2Q2014 & 1H2014

9. Slide 9: Modest total revenue growth on the back of lower construction activities

   STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Modest total revenue growth on the back of lower construction activities Total revenue (RM mn) 1,712 1,492 364 1,387 266 272 750 772 45 1,348 107 1,226 1,115 401 409 30 71 727 643 330 379 6.4 6.9 7.5 1.8 2.1 3.6 4.0 2011 2012 2013 2Q201

10. Slide 10: Strong operational revenue growth underpinned by container segment

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Strong operational revenue growth underpinned by container segment Operational Revenue Segmentation (RM mn) 1,348 32 1,226 74 30 1,115 64 137 31 64 123 105 727 19 643 37 16 65 36 1,105 67 1,009 915 378 330 10 19 8 18 33 35 606 524 316 2

11. Slide 11: Operational Cost Moved in Tandem with Container Throughput

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Operational Cost Moved in Tamdem with Container Throughput Total cost of sales (RM mn) 975 823 783 364 266 272 402 381 107 45 611 557 511 221 203 71 30 336 295 150 173 2011 2012 2013 2Q2013 2Q2014 1H2013 1H2014 10 Operational Constructi

12. Slide 12: Cost of sales grew in line with container throughput

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Cost of sales grew in line with container throughput Operational cost breakdown – 2Q2014 versus 2Q2013 (RM mn) Electricity Electricity Depreciation RM7mn Depreciation RM5mn RM26mn 4.1% RM30mn 3.5% 17.3% 17.3% Container Container Operati

13. Slide 13: Cost of sales grew in line with container throughput

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Cost of sales grew in line with container throughput Operational cost breakdown –1H2014 versus 1H2013 (RM mn) Electricity Depreciation Electricity Depreciation RM10mn RM50mn RM13mn RM57mn 3.4% 16.9% 3.9% 17.0% Container Container Operat

14. Slide 14: Healthy Margins Supported by Operational Efficiency

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Healthy Margins Supported by Operational Efficiency Gross profit (RM mn) 54.2% 54.5% 54.7% 54.7% 54.2% 54.1% 53.7% 50.2% 50.6% 46.4% 44.8% 45.0% 43.6% 43.1% 605 669 737 181 205 348 391 2011 2012 2013 2Q2013 2Q2014 1H2013 1H2014 13 Gross

15. Slide 15: Healthy Margins Supported by Operational Efficiency

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Healthy Margins Supported by Operational Efficiency EBITDA (RM mn) 57.5% 53.3% 52.6% 52.9% 52.3% 52.0% 52.1% 48.9% 49.1% 47.4% 41.4% 45.0% 43.8% 41.8% 710 654 21 579 56 51 379 1 337 689 598 528 176 200 379 -14 336 190 200 2011 2012 2013

16. Slide 16: Healthy Margins Supported by Operational Efficiency

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Healthy Margins Supported by Operational Efficiency Profit Before Tax (RM mn) 40.1% 39.9% 40.5% 39.3% 39.3% 37.3% 38.6% 36.3% 36.4% 33.7% 32.9% 33.3% 31.4% 30.0% 538 491 21 416 56 51 253 280 517 1 435 365 133 149 -14 252 280 147 149 201

17. Slide 17: Healthy Margins Supported by Operational Efficiency

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Healthy Margins Supported by Operational Efficiency Profit After Tax (RM mn) 32.9% 33.5% 33.2% 31.9% 32.3% 31.0% 31.8% 30.0% 29.9% 27.0% 27.3% 26.4% 26.5% 25.6% 451 403 16 355 42 38 199 232 435 1 361 316 110 122 -10 198 232 120 122 2011

18. Slide 18: Lower Debt-to-Equity on Rising Cash Position

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Lower Debt-to-Equity on Rising Cash Position Borrowing and cash and cash equivalent (RM mn) Net Debt – to – Equity Ratio (As at 30 June 2014) 1,150 0.33 x 0.25 x 0.35 x 0.46 x 391 As at Dec 2011 As at Dec 2012 As at Dec 2013 As at June

19. Slide 19: Capital Expenditure Supportive of Growth

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Capital Expenditure Supportive of Growth Capital Expenditure by Components (RM mn) Capital Commitments as at 30 June 2014 607.2 31.3 Authorised but not contracted for 497.8 RM26mn 20% 34.3 449.2 209.4 18.9 Total 180.5 141.8 Contractual

20. Slide 20: 3. Progress Updates

    3. PROGRESS UPDATES

21. Slide 21: Total handling capacity to increase to 11 million TEUs

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Total handling capacity to increase to 11 million TEUs Four (4) of the seven (7) high specifications ship-to-shore cranes were delivered and have commenced operation. We expect to take delivery of the remaining three (3) ship- to-shore

22. Slide 22: Business As Usual Following Termination of Proposed P3 Alliance

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Business As Usual Following Termination of Proposed P3 Alliance On 17 June 2014, China’s Ministry of Commerce had blocked the proposed formation of P3 Alliance. The members of the proposed P3 Alliance, namely, CMA CGM, Maersk and MSC ha

23. Slide 23: Concession Period Extended to 2054

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Concession Period Extended to 2054 In an announcement to the Bursa Malaysia Securities Berhad on 27 June 2014, The Board of Directors of Westports Malaysia Sdn Bhd (“WMSB”) has received the Notice from Port Klang Authority (“PKA”) pursu

24. Slide 24: 4. Prospects and Outlook

    4. PROSPECTS AND OUTLOOK

25. Slide 25: Sustainable growth momentum

    STRICTLY PRIVATE & CONFIDENTIAL Strictly Private & Confidential Sustainable growth momentum Westports recorded a set of strong financial performance in 1H2014 underpinned by exceptionally robust growth in container throughput with encouraging growth from both transshipment and gateway. The growth in

26. Slide 26: Thank You

    THANK YOU For further information on this presentation kit, please kindly contact: Crystal Teh Westports Holdings Berhad Email: crystal@westports.com.my Contact: +603 3169 4384 Mobile No: +6012 330 6963 Website: www.westportsholdings.com.my

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