Malaysian Resources Corp. Bhd. · MYX:MRCB

Malaysian Resources Corp. Bhd — Q2 2018 Earnings Presentation

19 slides from Malaysian Resources Corp. Bhd's earnings presentation, Jun 30, 2018

  1. Slide 1: Analyst Briefing: Quarter ended 30 June 2018

    ANALYST BRIEFING Quarter ended 30 June 2018 www.mrcb.com

  2. Slide 2: Table of Contents

    Table of Contents MRCB Group Overview 3 Financial Performance 8 Business Model 4 Segmental Reporting: Overview 13 MRCB Financial Summary 6 Segmental Reporting: Property Development 14 YTD 2018 Highlights 7 & Investment Segmental Reporting: Engineering, Construction 17 & Environment

  3. Slide 3: MRCB Group Overview

    1. MRCB Group Overview 2 core activities: Property Development & Investment Engineering, Construction & Environment Other activities: Infrastructure and Concession Facilities Management & Parking Pioneered Transport Oriented Development (“TOD”) in Malaysia Property investment is conducted through 27

  4. Slide 4: Business Model – Property Development & Investment

    2. Business Model – Property Development & Investment Bespoke Buildings Pre-let on Long Term Leases • Purpose built buildings • Carries more value due to customisation • Profits from lease income and possible disposal in the future Bespoke Buildings for Sale • Pre-sell to owner occupiers or other pu

  5. Slide 5: Business Model – Engineering, Construction & Environment

    2. Business Model – Engineering, Construction & Environment Infrastructure Commercial Environment Transmission and Residential Lines ▪ Largest Bumiputera construction company ▪ Full service and autonomous construction company ▪ Strong track record and extensive engineering skillsets which allows us

  6. Slide 6: MRCB Financial Summary

    3. MRCB Financial Summary MRCB 1H FY2018 Overview MRCB Segment Overview Property Engineering & Others Revenue PBT Development Construction RM 833 mil. RM 74 mil. 33% y-o-y 20% y-o-y Revenue RM mil. 414 384 35 37% y-o-y PAT Net Gearing RM 58 mil. Revenue 0.69 x Contribution 50% 46% 4% 28% y-o-y Opera

  7. Slide 7: YTD 2018 Highlights

    4. YTD 2018 Highlights Revenue (RM mil.) Operating Profit (RM mil.) PBT (RM mil.) EPS (sen) 33% 39% 20% 17% 1,245 128 74 1.51 833 78 62 1.25 YTD 2017 YTD 2018 YTD 2017 YTD 2018 YTD 2017 YTD 2018 YTD 2017 YTD 2018 Key Highlights • Higher revenue recognised in YTD’17 mainly due to construction revenue

  8. Slide 8: Financial Performance – Profit & Loss

    5. Financial Performance – Profit & Loss Y-o-Y Y-o-Y RM' Million Q2 FY18 Q2 FY17 YTD 2018 YTD 2017 Growth % Growth % Revenue 405 725 (44.1)% 833 1,245 (33.1)% Other Operating Income 11 15 (26.5)% 27 32 (16.4)% Total Revenue 416 740 (43.8)% 860 1,277 (32.7)% Operating Expenses 362 675 (46.3)% 782 1,1

  9. Slide 9: Financial Performance – Quarterly Analysis

    5. Financial Performance – Quarterly Analysis Revenue Operating Profit and Margin 1,130 116 725 87 30.8% 13.3% 65 428 405 54 378 5.6% 8.6% 7.9% 24 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 PAT and Margin EPS (sen) 98 4.50 26.0% 32 33 26 26 7.9% 1.39 3.0% 6.1% 1.10 3.4% 0.49 0.76 Q2

  10. Slide 10: Financial Performance – Balance Sheet

    5. Financial Performance – Balance Sheet NAV Per Share (sen) RM' Million Q2 FY18 Q1 FY18 Total Assets 137.8 136.5 Current Assets 4,720 6,057 109.8 110.3 111.1 Non-Current Assets 5,968 4,390 Total Assets 10,688 10,448 Total Liabilities Current Liabilities 3,893 3,872 Non-Current Liabilities 1,835 1,6

  11. Slide 11: Financial Performance – Borrowings

    5. Financial Performance – Borrowings Leverage Profile (RM mil.) Q2 2018 Q1 2018 Net Debt and Gearing Debt Short Term Borrowings 2,581 2,459 1.10x 0.69x Long Term Borrowings 1,311 1,136 0.96x 3,439 HP creditors 2 3 3,403 0.58x Total Debt 3,894 3,598 2,997 0.53x 2,606 2,882 Less: Cash and Cash Equiva

  12. Slide 12: Financial Performance – Reduction in Borrowings

    5. Financial Performance – Reduction in Borrowings Post EPF’s subscription in EDL Disposal of Disposal of RM million 1H FY2018 Bkt Jalil Sentral Compensation Ascott Celcom Bank Borrowings 2,871 1,733 1,733 1,733 1,733 EDL Financing 1,023 1,023 - - - Total Borrowings 3,894 2,756 1,733 1,733 1,733 Cas

  13. Slide 13: Segmental Reporting: Overview

    6. Segmental Reporting: Overview Revenue Trend – RM833 mil. Revenue Contribution Analysis 1,245 4% E&C 833 699 384 414 450 Property 46% Development 35 96 50% YTD’18 YTD’17 YTD’18 YTD’17 YTD’18 YTD’17 YTD’18 YTD’17 Others** Group E&C Property Others** Development Segmental Profit Trend – RM85 mil. Pr

  14. Slide 14: Segmental Reporting: Property Development & Investment

    7. Segmental Reporting: Property Development & Investment Y-o-Y Y-o-Y RM' Million Q2 FY18 Q2 FY17 YTD 2018 YTD 2017 Growth % Growth % Revenue 193 213 (9.0)% 414 450 (8.1)% Segmental Profit 31 30 2.8% 55 78 (29.4)% Margin (%) 16.0% 14.1% 13.3% 17.3% Segmental Profit and Margin Performance Discussion

  15. Slide 15: Segmental Reporting: Property Development Projects

    7. Segmental Reporting: Property Development Projects Total sales of RM261 mil. as at Q2 2018 Property Sales YTD 2018 – RM261 mil. Unbilled Sales – RM1,672 mil. Project / Sales (RM' mil.) GDV % Sales YTD 2018 Unbilled Project / Sales (RM' mil.) Completion YTD 2018 Sales Residential Residential 1060

  16. Slide 16: Segmental Reporting: Property Development Projects

    7. Segmental Reporting: Property Development Projects Land Size GDV Start Completion % Stake (Acres) RM' mil. Date Date Transport Oriented Developments KL Sentral: Lot F 5.70 2,993 74% 2018 2025 PJ Sentral Garden City 11.91 2,619 100% 2013 2022 Penang Sentral 22.65 2,865 100% 2015 2027 Cyberjaya Cit

  17. Slide 17: Segmental Reporting: Engineering, Construction & Environment

    8. Segmental Reporting: Engineering, Construction & Environment Y-o-Y Y-o-Y RM' Million Q2 FY18 Q2 FY17 YTD 2018 YTD 2017 Growth % Growth % Revenue 193 468 (58.8)% 384 699 (45.1)% Segmental Profit 25 14 78.0% 41 15 168.1% Margin (%) 13.0% 3.0% 10.7% 2.2% Segmental Profit and Margin Performance Discu

  18. Slide 18: Unbilled External Order Book

    8. Segmental Reporting: Engineering, Construction & Environment Unbilled External Order Book – RM5,067 mil. RM'mil Contract Value Completion Buildings: External Order Book Analysis Johor Land Tower 184 95% Aman Desaru 139 96% Desaru Convention Centre 60 80% Environment Desa Desaru 220 80% 3% Westin

  19. Slide 19: Malaysian Resources Corporation Berhad

    MALAYSIAN RESOURCES CORPORATION BERHAD Level 30, Menara Allianz Sentral, No. 203, Jalan Tun Sambanthan, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia www.mrcb.com 19

Malaysian Resources Corporation Berhad — Q2 2018 Earnings Presentation on 6ix