analyst & investor briefing 2q 2013 resultsir.irchartnexus.com/eversendai/docs/analysts/2q2013...
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ANALYST & INVESTOR BRIEFING
2Q 2013 RESULTS 2ND SEPTEMBER 2013
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DISCLAIMER
The information in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to subscribe for or purchase of any ordinary shares (“Shares”) in Eversendai Corporation Berhad (“Eversendai”) in Malaysia, the United States or any other jurisdiction.
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 assumptions. Although Eversendai believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met. Eversendai, its affiliates, agents, advisers and their respective directors, officers, partners, employees and representatives assume no responsibility to amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information, events or otherwise.
Representative examples of these factors include (without limitation) general industry and economic conditions, continuing political and social stability in the countries we operate, competition from other companies, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of the management on future events.
This presentation has been prepared by Eversendai. The information in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this presentation and any other oral or written information provided in connection therewith. None of Eversendai, its affiliates, agents, advisers and their respective directors, officers, partners, employees and representatives shall have any liability whatsoever (in contract, tort or otherwise) for any loss howsoever arising which may be based on this presentation or any other oral or written information provided in connection therewith and any errors therein and/or omissions therefrom.
This presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized, disclosed, referred or passed on to any party at any time without the prior written consent of Eversendai.
This presentation shall not constitute and should not be considered as any form of opinion or recommendation by Eversendai, its directors, officers, partners, employees and/or representatives.
By attending this presentation and/or receiving a copy of this presentation, you agree to be bound by the limitations contained above.
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AGENDA
Project: National Museum of Qatar
Operational Highlights
Financial Highlights
Moving Forward
Q & A
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Operational Highlights
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542.8
923.9
1,065.2
1,667.8
408.9 416.7 1
H1
3
20
12
20
11
20
10
20
09
20
08
NEW CONTRACTS SECURED IN 1H2013 Total value of new contracts secured in 1H2013 was RM543m
Secured from Middle East region
Val
ue
of
Ne
w C
on
trac
ts S
ecu
red
(i
n R
M’m
illio
n)
10
0%
90
%
66
%
53
%
45
%
80
%
UAE: RM351.2m
CIS: RM87.7m
India: RM21.3m
100%
Qatar: RM58.8m
Iraq: RM23.9m
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KEY ON-GOING PROJECTS 20 key on-going projects across 7 countries in the region
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KEY ON-GOING PROJECTS 20 key on-going projects across 7 countries in the region
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KEY ON-GOING PROJECTS 20 key on-going projects across 7 countries in the region
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ORDER BOOK Our order book is at RM1.4 billion
By Geography Middle East
51.2%
By Business Segment (In RM’million)
Structural Steel
Construction
Power Plant
16.2%
51.7%
32.0%
710.1 439.8
222.4
2013
2014
2016
2015
Order Book Run Rate
RM528.1m
RM475.9m
RM305.5m
RM62.9m
TOTAL: RM1,372.4m
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Financial Highlights
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81
7.1
74
4.9
1,0
33
.7
1,0
21
.3
49
0.7
20
09
20
10
20
11
20
12
1H
20
13
REVENUE
Middle East
64.8%
Malaysia 22.5%
India 12.7%
Construction 11.9%
Power Plant 24.8%
(In RM’million)
Structural Steel
63.3%
By Business Segment
By Geography
Revenue split by geographical markets and business segments
24
3.2
24
7.5
Q1
Q2
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EARNINGS
78
.0
11
6.7
11
9.5
11
5.4
40
.1
20
09
20
10
20
11
20
12
1H
20
13
PATAMI (In RM’million)
2009 9.5%
2010 15.7%
2011 11.6%
2012 11.3%
1H2013 8.2%
PATAMI Margin
1H2013
2012
2011
2010
2009
13.4%
17.8%
17.2%
21.9%
19.3%
EBITDA Margin
EBITDA and PATAMI margins analysis
23
.7
16
.5
Q1
Q2
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1H
20
13
20
12
20
11
20
10
480.0
254.0 306.5
394.6
36
5.1
22
8.9
29
0.9
14
1.9
Borrowing
Cash & equivalents1.27
0.43 0.32
0.58
FINANCIAL POSITION
31
1.8
71
6.1
78
3.3
83
2.1
20
10
20
11
20
12
1H
20
13
Shareholders’ Funds (In RM’million)
NAV per share: 92.5 Sen
107.5 Sen
(In RM’million)
Gearing ratio (x)
101.2 Sen
Shareholders’ funds, NAV and gearing positions
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SHAREHOLDING STRUCTURE
* Since IPO in July 2011.
As at 9 July 2013 CIMB
Principal* 1.1%
Lynas Capital
1.9%
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Moving Forward…
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Over 17 years of experience and networking established in the Middle East region.
Increasing steel construction demand in Saudi Arabia, Abu Dhabi and Qatar.
Saudi Arabia accounts for over 50% of the total construction market in the Gulf Countries and more opportunities in Qatar due to the 2022 FIFA World Cup.
Middle East
Saudi Arabia Qatar UAE
INDUSTRY OUTLOOK & STRATEGY Operate in areas free from political turmoil and establish a
strong track record evidenced by continuous job wins
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Malaysia
High impact projects under 10th Malaysia Plan worth USD20 billion; Potential structural steel/ composite structured construction business in Tun Razak Exchange, MRTs, Warisan Merdeka, Pengerang development and etc.
Power plant projects: Manjung 3A , 3B, Pengerang Co-Gen and Prai Power Station.
Demand for high rise buildings, particularly in Mumbai and Bangalore.
Potential projects in airports and power plants.
The 5th fabrication plant in Trichy will be completed in September 2013.
India Commonwealth of Independent States
Comprising 11 member countries. Potential for huge development projects from these oil-rich states.
Successfully set foot in Azerbaijan by securing the Crescent City Project at Baku.
On-going effort to penetrate into other states: Kazakhstan, Turkmenistan and others.
INDUSTRY OUTLOOK & STRATEGY
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PAST PRESENT
UAE Qatar Saudi Arabia India Malaysia
Oman Azerbaijan
India Ras Al
Khaimah
Structural steel Power plant Construction
Dubai, UAE Sharjah, UAE Doha, Qatar Rawang, Malaysia
Enhance Penetration in
Existing & Expand into
New Markets
Expand Service Offering
Increase Capacity
FUTURE
Other Middle East countries
CIS and East African countries
Australia and other ASEAN countries
Strategic Alliance with our power plant clients for Asian countries
To expand into local petrochemical sector
Saudi Arabia CIS
FUTURE PLAN Strengthening competitive position through diversification &
market expansion
Power Plant: Part EPC contractor in Tj. Bin 4
O&G: Secured the 1st O&G contract in Iraq
Construction: 49% equity stake in Vahana
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Thank You.