Xmh Holdings Ltd. · SGX:BQF
Xmh — 2Q2013 Earnings Presentation
34 slides from Xmh's earnings presentation, Dec 11, 2012
Slide 1: 2Q2013 Results Presentation
2Q2013 Results Presentation
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (the "Information") is provided by XMH Holdings Ltd. (the "Company") to you solely for your reference and may not be retransmitted or distributed to any other person. The Information has not been independently verified and may not contain all
Slide 3: Presentation Outline
Presentation Outline Corporate Profile Business Overview Financial Highlights Outlook & Strategies
Slide 4: Corporate Profile
Corporate CorporateProfile Profile
Slide 5: Corporate Profile
Corporate Profile •A diesel engine, propulsion and power generating solutions provider in the marine and industrial sectors • Over 50 years of operating track record mainly in Asia • Listed on the Main Board of the SGX-ST on 26 January 2011 5
Slide 6: Corporate Milestones
Corporate Milestones 1955 1960 - 70s 1980s 1990s 2000s •2010 • Founder Mr Tan Tum • Resale of used • Leading supplier of used • Xin Ming Hua • Progressively secured Beng started a small industrial diesel industrial and marine (“XMH”) incorporated distribution rights for machinery repair and engines
Slide 7: Key Executive Management
Key Executive Management Key Executive Management Chia Chung Mun, Tan Seng Hee Chua Tiong Wei Tan Guat Lian Tan Tin Yeow Yap Lee Ann Alphonsus Deputy CEO & Executive Director Executive Director Chairman & CEO Executive Director (Sales & Business Financial Controller Deputy CEO (HR & Admin) (Trading
Slide 8: Investment Merits
Investment Merits Established presence in the marine industry in Singapore since the 1980s Experienced and committed management team Diversified customer base allows minimisation of fluctuations in demand arising from a downturn in any particular sector Exposure to significant growth opportunities e
Slide 9: Share Statistics
Share Statistics Bloomberg code XMH SP EQUITY Reuters code XMHL.SI Share Price S$0.192 Market Capitalization (386.3M S$73.8 million shares) P/E 7.95 NAV per share S$0.11 Free Float 18.8% Substantial Shareholders Directors 77.7% Source: Bloomberg as at 10 Dec 2012 9
Slide 10: Business Overview
Business Business Overview Overview
Slide 11: Business Segments
Business Segments XMH Holdings Distribution and Provision After-Sales Services, of Value-added Trading and Others Products and Services Sourcing & Supply of Trading of Agency In-House Brand/ Repair & Spare Parts & Machinery & Products Customised Solution Maintenance Accessories Components 11
Slide 12: Product Range & Applications
Product Range & Applications Distribute a wide range of marine and industrial diesel engines, power generating sets and related components for the following applications: Marine Industrial Applications: • Transportation vessels (tugs and • Power generating sets used barges, cargo vessels and ferries
Slide 13: Geographical Coverage
Geographical Coverage China Middle East India Myammar Thailand Vietnam Philippines Cambodia Malaysia Sri Lanka Singapore Maldives Indonesia 13
Slide 14: Reputable Distribution Brands
Reputable Distribution Brands BRAND PRODUCT TYPE TERRITORIES 1) Limited range of high-speed and 1) China, India, Indonesia, medium-speed marine diesel engine the Maldives, Singapore, Mitsubishi and power generating sets, including Vietnam related spare parts and accessories 2) OEM industrial power g
Slide 15: Reputable Distribution Brands
Reputable Distribution Brands BRAND PRODUCT TYPE TERRITORIES Reintjes Gearboxes and related spare parts Indonesia Gearbox Singapore and Indonesia D-I Steering Systems and PTO Singapore and Indonesia China, India, Indonesia, Malaysia, Middle East, Korsør Controllable pitch propellers Singapore, Thail
Slide 16: In-house Brands/Solutions
In-house Brands/Solutions Leveraged on internal technical know-how to develop value-added products and customized solutions: e-Gen • In-house range of marine and industrial power generating sets • Offers customers a choice between standardised and customised packages XMH IPS • A one-stop integrated
Slide 17: After-Sales Services & Trading Activities
After-Sales Services & Trading Activities • Provision of after-sales services such as repair and maintenance – Supported by a team of skilled and experienced engineers and technicians • Sourcing and supply of spare parts and accessories – Achieve time-savings for customers by maintaining a ready sup
Slide 18: Key Competitive Strengths
Key Competitive Strengths • Wide product range of reputable brand names – Currently have distributorship agency or dealership arrangements for mainly 12 brands of products, covering a range of over 4000 product items – Recognised by Mitsubishi as its largest worldwide distributor for marine diesel e
Slide 19: Key Competitive Strengths
Key Competitive Strengths • Developed strong customer and supplier relationships over the years – Strong customer loyalty with high repeat sales averaging over 70% in the last three financial years – Key distributor of Mitsubishi for 17 years and running • Experienced and committed management team –
Slide 20: Financial Highlights
Financial Financial Highlights Highlights
Slide 21: Financial Summary – 2Q2013
Financial Summary – 2Q2013 Revenue 180.7% S$26.7 million Gross profit 150.3% S$5.9 million Operating profit 115.5% S$4.1 million Net profit 146.2% S$3.6 million 21
Slide 22: P&L Snapshot
P&L Snapshot Profit & Loss 2Q2013 2Q2012 Change S$’000 S$’000 % Revenue improved as XMH Revenue 26,745 9,527 180.7 cleared backlogs with customers Gross Profit 5,910 2,361 150.3 In line with higher revenue Gross Profit Margin 22.1% 24.8% - Increased due to payroll Operating Expenses * 1,950 1,577 23
Slide 23: Revenue Trend
Revenue Trend All amounts stated are in S$’ million unless otherwise stated Revenue achieved in 1H2013 is close to 80% of that of FY2012! 74.5 70.2 65.5 7.2 9.3 62.2 8.2 7.9 48.7 4.3 67.3 57.3 60.9 54.3 44.4 FY2009 FY2010 FY2011 FY2012 1H2013 Distribution After-Sales 23
Slide 24: Profitability Trend
Profitability Trend S$’ million HY Analysis Quarter Analysis 25.0 30.0% 27.8% 27.8% 20.0 26.2% 25.2% 24.9% 24.8% 25.0% 15.0 22.1% 20.4% 10.0 20.7 19.5 15.7 20.0% 9.9 12.1 5.0 5.7 5.9 2.4 - 15.0% Gross Profit Gross Profit Margin 24
Slide 25: Profitability Trend
Profitability Trend S$’ million HY Analysis Quarter Analysis 20.0 30.0% 23.6% 15.0 20.0% 15.3% 15.4% 12.8% 13.7% 13.9% 10.0 17.6 12.1% 8.1% 10.0% 5.0 9.0 9.5 5.3 5.8 3.0 3.6 1.5 - 0.0% Net Profit Net Profit Margin 25
Slide 26: Balance Sheet
Balance Sheet Balance Sheet 31 October 2012 30 April 2012 S$’000 S$’000 2,309 1,975 Property, plant and equipment Inventories 26,859 26,118 Trade and other receivables 7,198 14,967 Cash and cash equivalents 46,963 39,233 Total equity 44,261 42,560 Net gearing ratio Net cash Net cash Net asset value
Slide 27: Financial Position
Financial Position Cash and Cash Equivalents (S$’ million) 53.9 47.0 39.2 33.1 30.3 30 Apr 09 30 Apr 10 30 Apr 11 30 Apr 12 31 Oct 12 27
Slide 28: CAGR Growth
CAGR Growth Revenue Gross Profit CAGR CAGR growth growth (2008-2012) (2008-2012) + 3.9% + 12.0% Operating Profit Net Profit CAGR growth CAGR (2008-2012) growth (2008-2012) + 18.6% + 16.9% 28
Slide 29: Outlook & Strategies
Outlook Outlook&& Strategies Strategies
Slide 30: Outlook
Outlook • Short-term volatility in coal demand in Indonesia; Healthy prospects in longer term – Short-term: Coal price sliding may result in reduction in production – slowing down demand for relevant marine transportation – Long-term: General demand for coal to drive power plants remained strong 30
Slide 31: Outlook
Outlook • Potentially benefit from continual growth in oil & gas sector – Increased offshore oil & gas exploration activities to alleviate current oversupply situation in offshore support vessels (OSVs) – Potential replacement of a number of OSVs which are near their scrap age • Expected increase in
Slide 32: Growth Strategies
Growth Strategies • Expand in-house range of products and services – Further develop range of power generating units under“e-Gen” trademark and strengthen“XMH -IPS” project management services – Establish assembly line for in-house range of power generating sets – Acquisition and development of new
Slide 33: Growth Strategies
Growth Strategies • Exploration of new revenue streams – Focus on expansion of supplier base and secure new distributorships from other manufacturers – Received orders for new products XMH currently represents – Increase market share in relevant markets by forming strategic partnerships of joint ven
Slide 34: Thank You
XMH Holdings Ltd. YOUR CONNECTION TO THE RIGHT MACHINE THANK YOU