Westports Holdings Bhd. · MYX:WPRTS
Westports Holdings Bhd — Shareholder Meeting (May 2020)
52 slides from Westports Holdings Bhd's shareholder meeting presentation, May 5, 2020
Slide 1: Westports Holdings Berhad 27th Annual General Meeting
Westports Holdings Berhad (Company No. 262761-A) 27th Annual General Meeting 5th May 2020
Slide 2: Remembering Dato' Abdul Rahim Bin Abu Bakar
Remembering Dato’ Abdul Rahim Bin Abu Bakar 2 ▪ Dato’ Abdul Rahim Bin Abu Bakar ▪ Appointed to the Board on 1 April 2003 ▪ Independent Non-Executive Director ▪ Member of the Audit and Risk Management Committee ▪ Member of the Nomination, Remuneration and Corporate Governance Committee ▪ Retired from
Slide 3: 2019 Operational & Financial Performance, Outlook, Response To MSWG
2019 Operational & Financial Performance || Outlook || Response To MSWG
Slide 4: Westports 25th Anniversary
Westports 25th Anniversary 4
Slide 5: Record Container Volume – Capturing Regional And Domestic Economic Growth
Record Container Volume – Capturing Regional And Domestic Economic Growth 5 ▪ +14% growth to record container throughput 10.9 of 10.9 million TEUs in 2019 ▪ Gateway containers +10% to 3.6 million TEUs 9.9 9.5 ▪ Strong growth of transhipment containers at 9.1 9.0 +16% to 7.2 million TEUs 8.4 7.5 6.9
Slide 6: Container Throughput By Trade Lanes – Broad Regional Exposure
Container Throughput By Trade Lanes – Broad Regional Exposure 6 Others ▪ Intra-Asia volume constituted Asia-Africa 3% 63% of total container volume 4% in 2019 Asia-America ▪ Asia-Europe growth improved 5% and is the second largest trade lane at 17% ▪ Westports facilitated the Asia-Australasia moveme
Slide 7: Record-Breaking Productivity Level With 12 Quay Cranes
Record-Breaking Productivity Level By Moving 801 Containers In 1-Hour With 12 Quay Cranes CMA CGM Jean Mermoz 7
Slide 8: Conventional Throughput Facilitated Domestic Economic Activities
Conventional Throughput Facilitated Domestic Economic Activities 8 ▪ Conventional terminal handled 9.9 million metric tonnes of cargo ▪ Conventional comprises of Break Bulk, Dry Bulk, Liquid Bulk and Cement ▪ Lesser construction related cargo in Break Bulk and Bunker in Liquid Bulk 11.8 10.9 10.7 10
Slide 9: Higher Operational Revenue In Tandem With Container Throughput
Higher Operational Revenue In Tandem With Container Throughput 9 ▪ Operational revenue of RM1.783 billion ▪ Container contributed 86% to operational revenue with higher volume growth and more revenue from Value Added Services ▪ Revenue declined in 2018 from 2017 with MFRS15, accounting treatment. He
Slide 10: Profit After Tax Increased To RM591 Million
Profit After Tax Increased To RM591 Million 10 ▪ In 2016 and 2017, the construction of container terminals and Investment Tax Allowance incentive contributed to the lower effective corporate statutory tax rate ▪ From 2018 onwards, the normal corporate statutory tax rate of 24% resumed ▪ In 2019, Pro
Slide 11: Semi-Annual Dividend Distribution Since IPO Totalling RM2.75 Billion
Semi-Annual Dividend Distribution To Shareholders Since IPO Totalling RM2.75 Billion 11 ▪ Payout ratio of 75% on Profit After Tax since IPO ▪ Total dividend distributed to shareholders of RM2.75 billion since IPO 488 477 443 400 384 379 228 271 213 216 210 197 178 249 217 230 178 174 181 184 FY2013
Slide 12: Future Outlook
2019 Operational & Financial Performance || Future Outlook || Response To MSWG
Slide 13: Future Outlook
Future Outlook 13 Outlook for 2020 ▪ Covid-19 very likely to cause global economic contraction ▪ Challenging conditions and less predictability
Slide 14: Future Outlook
Future Outlook 14 Outlook for 2020 ▪ Covid-19 very likely to cause global economic contraction ▪ Challenging conditions and less predictability Long-term growth ▪ Completed all studies for terminal expansion in 2019 ▪ Started on detailed EIA ▪ Commence commercial negotiations
Slide 15: Westports – Expanded Container Terminal And Conventional Facilities
Westports – Expanded Container Terminal And Conventional Facilities 15
Slide 16: Thank You
Thank You Westports Holdings Berhad http://westportsholdings.com/
Slide 17: Response To MSWG
2019 Operational & Financial Performance || Future Outlook || Response To MSWG
Slide 18: Impact of Covid-19 and MCO on operations
Question 1 – Strategy & Financial Matters 18 ▪ How has the Covid-19 pandemic and the Malaysian Government’s enforcement of Movement Control Order (“MCO”) impacted the Company in terms of operations, container volume growth, the number of container vessels calling at Westports, etc? The MCO does not
Slide 19: Impact of Covid-19 and MCO on operations
Question 1 – Strategy & Financial Matters 19 ▪ How has the Covid-19 pandemic and the Malaysian Government’s enforcement of Movement Control Order (“MCO”) impacted the Company in terms of operations, container volume growth, the number of container vessels calling at Westports, etc? The MCO does not
Slide 20: Preparing for the new business landscape
Question 2 – Strategy & Financial Matters 20 ▪ Given that the end of the Covid-19 pandemic has yet to be seen, how is the Company preparing itself to face the new business landscape? From a Cost perspective, major cost components basically would vary with volume. Except for depreciation cost, all ot
Slide 21: Preparing for the new business landscape
Question 2 – Strategy & Financial Matters 21 ▪ Given that the end of the Covid-19 pandemic has yet to be seen, how is the Company preparing itself to face the new business landscape? From a Cost perspective, major cost components basically would vary with volume. Except for depreciation cost, all ot
Slide 22: Terminal equipment, capex and storage capacity
Question 3 – Strategy & Financial Matters 22 ▪ The Company is acquiring additional Terminal Operating Equipment that would be deployed primarily at Container Terminal 9. The additional equipment and the eventual completion of Container Yard Zone Z would enhance the container terminal’s overall effic
Slide 23: Terminal equipment, capex and storage capacity
Question 3 – Strategy & Financial Matters 23 ▪ The Company is acquiring additional Terminal Operating Equipment that would be deployed primarily at Container Terminal 9. The additional equipment and the eventual completion of Container Yard Zone Z would enhance the container terminal’s overall effic
Slide 24: Terminal equipment, capex and storage capacity
Question 3 – Strategy & Financial Matters 24 ▪ The Company is acquiring additional Terminal Operating Equipment that would be deployed primarily at Container Terminal 9. The additional equipment and the eventual completion of Container Yard Zone Z would enhance the container terminal’s overall effic
Slide 25: Terminal equipment, capex and storage capacity
Question 3 – Strategy & Financial Matters 25 ▪ The Company is acquiring additional Terminal Operating Equipment that would be deployed primarily at Container Terminal 9. The additional equipment and the eventual completion of Container Yard Zone Z would enhance the container terminal’s overall effic
Slide 26: Expected completion of Container Yard Zone Z
Question 3 – Strategy & Financial Matters 26 c. When is the expected completion of Container Yard Zone Z? Container Yard Zone Z should be completed by the 4th Quarter of 2020.
Slide 27: Expected completion of Container Yard Zone Z
Question 3 – Strategy & Financial Matters 27 c. When is the expected completion of Container Yard Zone Z? Container Yard Zone Z should be completed by the 4th Quarter of 2020.
Slide 28: Berthing vessel damage to cranes and berth
Question 4 – Strategy & Financial Matters 28 ▪ A berthing vessel damaged two of the Company’s Ship-to-Shore cranes and one berth in November 2019 (page 7 of AR2019). a. What was the total damage amount suffered by the Company in relation to the above? One Ship-to-Shore crane is damaged beyond repair
Slide 29: Berthing vessel damage to cranes and berth
Question 4 – Strategy & Financial Matters 29 ▪ A berthing vessel damaged two of the Company’s Ship-to-Shore cranes and one berth in November 2019 (page 7 of AR2019). a. What was the total damage amount suffered by the Company in relation to the above? One Ship-to-Shore crane is damaged beyond repair
Slide 30: Berthing vessel damage to cranes and berth
Question 4 – Strategy & Financial Matters 30 ▪ A berthing vessel damaged two of the Company’s Ship-to-Shore cranes and one berth in November 2019 (page 7 of AR2019). a. What was the total damage amount suffered by the Company in relation to the above? One Ship-to-Shore crane is damaged beyond repair
Slide 31: Berthing vessel damage to cranes and berth
Question 4 – Strategy & Financial Matters 31 ▪ A berthing vessel damaged two of the Company’s Ship-to-Shore cranes and one berth in November 2019 (page 7 of AR2019). a. What was the total damage amount suffered by the Company in relation to the above? One Ship-to-Shore crane is damaged beyond repair
Slide 32: Write-off amount and expected insurance recoveries
Question 4 – Strategy & Financial Matters 32 c. Westports has written off one of the cranes and some of the other affected assets (page 20 of AR2019). What was the total amount written-off in relation to this incident? Westports has written off a total amount of RM53.1 million in FY2019. d. The Comp
Slide 33: Write-off amount and expected insurance recoveries
Question 4 – Strategy & Financial Matters 33 c. Westports has written off one of the cranes and some of the other affected assets (page 20 of AR2019). What was the total amount written-off in relation to this incident? Westports has written off a total amount of RM53.1 million in FY2019. d. The Comp
Slide 34: Write-off amount and expected insurance recoveries
Question 4 – Strategy & Financial Matters 34 c. Westports has written off one of the cranes and some of the other affected assets (page 20 of AR2019). What was the total amount written-off in relation to this incident? Westports has written off a total amount of RM53.1 million in FY2019. d. The Comp
Slide 35: Write-off amount and expected insurance recoveries
Question 4 – Strategy & Financial Matters 35 c. Westports has written off one of the cranes and some of the other affected assets (page 20 of AR2019). What was the total amount written-off in relation to this incident? Westports has written off a total amount of RM53.1 million in FY2019. d. The Comp
Slide 36: Current insurance claims status
Question 4 – Strategy & Financial Matters 36 e. What is the current insurance claims status? When does the Company expect to receive its first tranche of insurance claim and how long will it take for a full insurance recovery? Westports is currently negotiating and finalizing the next course of acti
Slide 37: Current insurance claims status
Question 4 – Strategy & Financial Matters 37 e. What is the current insurance claims status? When does the Company expect to receive its first tranche of insurance claim and how long will it take for a full insurance recovery? Westports is currently negotiating and finalizing the next course of acti
Slide 38: Automation plans and workforce
Question 5 – Strategy & Financial Matters 38 ▪ Westports has a total workforce of 5,042 employees (2018: 4,603 employees) (page 18 of AR2019). What are the Company’s plans in terms of achieving higher level of automation in its port, (whilst reducing employee's headcount), to attain higher operation
Slide 39: Automation plans and workforce
Question 5 – Strategy & Financial Matters 39 ▪ Westports has a total workforce of 5,042 employees (2018: 4,603 employees) (page 18 of AR2019). What are the Company’s plans in terms of achieving higher level of automation in its port, (whilst reducing employee's headcount), to attain higher operation
Slide 40: Reskilling and no retrenchment
Question 5 – Strategy & Financial Matters 40 Headcount reduction was never our target from an innovation perspective. We never retrench people. We find new ways for them to contribute and mostly that has actually meant higher skilled jobs. We have natural attrition in some roles. This has allowed us
Slide 41: Investment in digital technologies and IT spending
Question 6 – Strategy & Financial Matters 41 ▪ What are the Company’s plans in relation to investment in digital technologies to improve the port’s performance? How much has been spent on IT initiatives in FY2019 and what would be the estimated expenditure for financial year ending 2020? Our plans f
Slide 42: Investment in digital technologies and IT spending
Question 6 – Strategy & Financial Matters 42 ▪ What are the Company’s plans in relation to investment in digital technologies to improve the port’s performance? How much has been spent on IT initiatives in FY2019 and what would be the estimated expenditure for financial year ending 2020? Our plans f
Slide 43: Related party sponsorship of KL Dragons
Question 7 – Strategy & Financial Matters 43 ▪ In relation to a related party transaction, Wesports sponsored RM2 million (2018: RM2 million) to KL Dragons Sdn Bhd (a company founded and co-owned by Datuk Ruben Emir Gnanalingam bin Abdullah) on sponsorships for basketball team (Note 35, page 79 of A
Slide 44: Related party sponsorship of KL Dragons
Question 7 – Strategy & Financial Matters 44 ▪ In relation to a related party transaction, Wesports sponsored RM2 million (2018: RM2 million) to KL Dragons Sdn Bhd (a company founded and co-owned by Datuk Ruben Emir Gnanalingam bin Abdullah) on sponsorships for basketball team (Note 35, page 79 of A
Slide 45: KL Dragons and basketball development
Question 7 – Strategy & Financial Matters 45 The KL Dragons meanwhile complement and emphasize on developing the game of basketball as a sport with the focus on nurturing young talents towards a professional career, building a new generation of local basketball players and spreading the game at the
Slide 46: Continuation of KL Dragons sponsorship
Question 7 – Strategy & Financial Matters 46 b.As reported under the MD’s message under the outlook, the Covid-19 outbreak is expected to adversely affect economic growth and weigh down the already slowing global economic growth (page 7 of AR2019). Does Westports plan to continue with the sponsorshi
Slide 47: Continuation of KL Dragons sponsorship
Question 7 – Strategy & Financial Matters 47 b.As reported under the MD’s message under the outlook, the Covid-19 outbreak is expected to adversely affect economic growth and weigh down the already slowing global economic growth (page 7 of AR2019). Does Westports plan to continue with the sponsorshi
Slide 48: Corporate Governance Matters – Practice 5.1
Question 1 – Corporate Governance Matters 48 ▪ Practice 5.1 - For Large Companies, the board engages independent experts periodically to facilitate objective and candid board evaluations. The Company’s response: Applied The Board having considered this issue, at the moment the Nomination, Remunerati
Slide 49: Corporate Governance Matters – Board assessment process
Question 1 – Corporate Governance Matters 49 ▪ The Company has a formal process for assessment of the effectiveness of the Board, the Committees and contribution by individual Directors to the Board and the Committees (“Board Assessments”). ▪ In assessing Board’s performance, the NRCGC takes into co
Slide 50: Corporate Governance Matters – Board evaluation and independent experts
Question 1 – Corporate Governance Matters 50 I. Board and Board Committees evaluation; II. Assessment of character, experience, integrity, competence and time commitment; III. Assessment on mix of skill and experience; and IV. Evaluation of level of independence of an Independent Director. ▪ The res
Slide 51: Thank You
Thank You Westports Holdings Berhad http://westportsholdings.com/
Slide 52: Westports Holdings Berhad 27th Annual General Meeting
Westports Holdings Berhad (Company No. 262761-A) 27th Annual General Meeting 5th May 2020
Westports Holdings Berhad — Shareholder Meeting (May 2020) on 6ix