mmc corporation berhad 41 annual general meeting ( agm … · 2017. 9. 19. · page 1 of 11 mmc...

of 11

MMC CORPORATION BERHAD

(Company No. 30245-H)

Minutes of the 41st Annual General Meeting (“AGM”) of MMC Corporation

Berhad (“MMC” or “the Company”) held at Mahkota II, Hotel Istana, 73,

Jalan Raja Chulan, 50200 Kuala Lumpur on Thursday, 11 May 2017 at

10.00 a.m.

DIRECTORS

PRESENT

Tan Sri Dato’ Seri Shamsul Azhar

Abbas

] Chairman & proxy

Dato’ Sri Che Khalib Mohamad Noh ] Group Managing

Director (“GMD”)

Tan Sri Dato’ Ir. (Dr.) Wan

Abdul Rahman Haji Wan Yaacob

] Directors

Dato’ Abdullah Mohd Yusof ]

Datuk Ooi Teik Huat ]

Dato’ Abdul Hamid Sh Mohamed ]

Dato’ Siti Halimah Ismail ]

Tuan Syed Naqiz Shahabuddin

Syed Abdul Jabbar

]

IN

ATTENDANCE

Encik Ahmad Aznan Nawawi

Puan Sazlin Ayesha Abdul Samat

]

Company

Secretaries

BY Encik Mohd Shahar Yope @ Yahya ] Representing

INVITATION Dr. Mabel Lee Khuan Eoi

Encik Badrulhisyam Fauzi

]

]

the Management

SHAREHOLDERS

PRESENT

490 shareholders representing

1,001,004 shares (0.03%) and 463

proxies representing 2,558,450,376

shares(84.02%).

QUORUM

Upon confirmation by the Company Secretary that a quorum was present,

the Chairman called the Meeting to order.

The Chairman extended a warm welcome to the shareholders who were

present at the AGM.

Before proceeding with the agenda of the AGM, the Chairman introduced

the Directors of the Company to the shareholders.

The Chairman then proceeded with the agenda of the Meeting.

of 11

NOTICE CONVENING THE MEETING

The notice convening the Meeting dated 17 April 2017 and the

Auditors’ Report dated 31 March 2017 were taken as read.

Before proceeding with the resolutions, the Chairman informed the

shareholders that the voting at the 41st AGM would be conducted by way

of electronic polling in accordance with Paragraph 8.29A of the Main

Market Listing Requirements of Bursa Malaysia Securities Berhad.

The Chairman further informed that Symphony Share Registrars Sdn Bhd

had been appointed as the polling administrator and Symphony

Corporatehouse Sdn Bhd as the scrutineer. The polling process for the

resolutions would be conducted upon completion of the deliberation of

all resolutions tabled at the 41st AGM.

AGENDA 1

AUDITED FINANCIAL STATEMENTS AND DIRECTORS’ AND AUDITORS’ REPORT FOR

THE FINANCIAL YEAR ENDED 31 DECEMBER 2016

The Chairman tabled the Audited Financial Statements and the

Directors’ and Auditors’ Reports to the Meeting and remarked that the

Company’s Financial Statements do not require shareholders’ approval

by virtue of Section 340 (1)(a) of the Companies Act, 2016 (“Act”).

The Act merely requires the Financial Statements to be laid before

the shareholders.

The Chairman then invited YBhg Dato’ Sri Che Khalib Mohamad Noh, the

Group Managing Director (GMD), to brief the shareholders on the

Company’s performance for the financial year ended 31 December 2016

and the outlook for the financial year 2017. (A copy of the

presentation is attached herewith as Appendix I to the Minutes).

The Chairman informed the shareholders that the Company had received

a letter dated 8 May 2017 from the Minority Shareholders Watchdog

Group (“MSWG”), enquiring on the financial performance of the Group

as well as matters relating to the resolutions.

For the benefit of shareholders present, the Chairman invited Encik

Ahmad Aznan Mohd Nawawi, the Company Secretary to read out the

questions raised by MSWG and MMC’s response therein (“Q&A”). (A copy

of the Q&A presentation is attached herewith as Appendix II to the

Minutes).

The Chairman then opened the floor for questions on the Audited

Financial Statements for the FY2016. In summary, the issues raised by

the shareholders/corporate representative/proxies were duly responded

by MMC Group as follows:

(1) Mr. Wan Eng Wah, a shareholder, enquired on the likely impact of

the transshipment business for ports in Peninsular Malaysia as a

result of the abolishment of cabotage between East Malaysia and

West Malaysia, as recently announced by the Prime Minister. The

GMD explained that only Northport has transshipment businesses

with East Malaysia. He added that the abolishment of cabotage

within the territory would only be effective in June 2017 and as

of 11

such it is premature to determine the overall impact of the said

ruling at this juncture. Nonetheless, the GMD of the view that

the overall impact of the abolishment of cabotage will be

minimal to MMC Group.

Mr. Wan Eng Wah further enquired on the status of the action

taken by Malaysian Anti-Corruption Commission (“MACC”)

pertaining to the Criminal Breach of Trust (CBT) case against

the former CEO/MD of Kontena Nasional (“KN”). The GMD responded

that the case is still ongoing and Management is providing the

necessary assistance as required by MACC.

Mr. Wan Eng Wah then sought clarification on the total sale

proceeds from the sale of land by Senai Airport City Sdn Bhd.

The GMD informed that the profit made from the sale of land (one

off) is approximately RM28.4 million.

He further enquired whether the Line 1 KVMRT Project has been

completed within the stipulated timeline and budget. In

addition, he also enquired whether there is any incentive

provided by the Government for the successful completion of the

same. The GMD replied that the company has successfully

completed the project within the agreed timeline with cost

savings of approximately RM2.0 Billion from the initial project

estimation cost upon which, MMC has been furnished with the

Certificate of Completion (COC) by the Government. He added that

the MRT route from Kajang to Sungai Buloh is expected to

commence in mid of July 2017.

In relation to Line 2 KVMRT project, Mr. Wan Eng Wah inquired on

the status of the project and whether MMC is appointed as

project delivery partner (PDP) for the said Project. The GMD

informed that MMC had been appointed as PDP and the project is

progressing as planned. The Project is managed by a dedicated

team from the previous project.

(2) Ms. Lya Rahman enquired on the timing for the payment of

directors’ emoluments and benefits in kind for FYE 2017. The

Chairman replied that the Board would be paying emoluments and

benefit in kind for this year and sought approval from the

shareholders at next year’s AGM. Considering the circumstances,

Ms. Lya Rahman sought the Board’s consideration to seek the

shareholders’ approval prior to the payment of the directors’

emoluments and benefit in kind in the future.

Ms. Lya Rahman referred to the directors’ remuneration which is

still being categorised in a band. She expressed hope that next

year the Board would disclose the remuneration received by each

director of MMC to be in tandem with international best

practice.

of 11

Ms. Lya Rahman also highlighted that based on the Annual Report,

one (1) independent director would be retiring at the conclusion

of today’s AGM. In light thereof, she requested for the Board to

consider a woman director to fill the vacancy. The Chairman

informed that the Board is supportive of board diversity subject

to the candidate fulfilling the criteria and merits required by

the Board.

(3) Mr. Lim Pin Yeong sought clarification on the development of

Melaka Gateway Port by the China investors and its effect on the

expansion plan of Tanjung Bruas Port. The GMD explained that MMC

is not a party to Melaka Gateway Port and thus unable to comment

on the matter. As for Tanjung Bruas Port, MMC has planned its

own business strategy given its huge potential to cater for

cargo from Sumatera, Indonesia. As informed in the earlier

presentation, MMC has entered into an Agreement with Pelindo IV

to form a collaboration to enhance commodity cargo from Sumatera

to Tanjung Bruas Port. The GMD added that the revenue from

Tanjung Bruas Port had been double ever since MMC took over the

management of the said port.

Mr. Lim Pin Yeong highlighted that prior the acquisition of NCB

by MMC, NCB had planned to dispose of Kontena Nasional (“KN”).

He enquired the rationale for MMC retaining KN although the said

company is not financially stable. The GMD clarified that since

commencing business, KN has a good track record except for one

particular occasion. He highlighted that KN is the only haulage

company in Malaysia that can carry classified items and has

warehouses at strategic locations throughout Peninsular

Malaysia. As such, MMC believes it can transform KN within a

reasonable timeframe.

Mr.Lim Pin Yeong sought the explanation from MMC on the

advantages and disadvantages of consolidating Malakoff’s

accounts with MMC. The GMD explained that the Companies Act 2016

requires MMC to prepare equity financing in the Financial

Statement for its investment in Malakoff since Malakoff is an

associate company.

Mr. Lim Pin Yeong made reference to item “Others” under

“Administrative and other operating Expenses” appearing on page

50 of the Annual Report. He sought clarification on the

particulars included in the said item and the increase in the

figures to RM90 million in FYE 2016 compared to RM59.7 million

in the previous year. The GMD clarified that other operating

expenses are a combination of various items such as licensing

fee for SAP, marketing and promotion expenses, etc. The amount

had increased from the previous year as there were more

companies under MMC in 2016 compared to 2015.

Mr. Lim Pin Yeong further referred to “trade and other

receivables” appearing in Note 24 of the Annual Report and

enquired on the significant increase in trade and other

receivables compared to previous year. The GMD responded that

the Management is tracking closely all debtors and monitoring

credit aging stringently during this challenging time. In fact,

these items have been included as one of the Key Performance

of 11

Indicators (KPI) for the Finance Departments in the Group. The

trade receivables have increased as there were more companies

under MMC compared to the previous year. The balance of the

receivables is from good creditors with below 90 days credit

period.

4) Mr. Mootha a/l Bass sought clarification on the disparity

between the acquisition and disposal sum of certain companies

under MMC and whether proper evaluations were made prior to

these companies being disposed of. In addition, he also enquired

on the benefits that shareholders will gain from the said

transactions. The GMD clarified that Tepat Teknik Sdn Bhd had

ceased operation and not being disposed of by MMC. Essentially,

the Board was of the view that due to the stiff competition from

the backyard operations, the fabrication business is no longer

viable. Furthermore, the land on which the factory is situated

has been acquired by the Government under the Compulsory

Acquisition Act to build a road. Tepat Teknik was given a

compensation of RM50.0 million by the Government.

In respect to disposal of MMC Oil and Gas Sdn Bhd (“MMCOG”), the

disposal consideration for MMCOG was based on the valuation

carried out by Messrs. Deloitte. As for Penang Port, the Board

was of the view that there is an accretive opportunity to invest

in Penang Port, which is making a profit of RM70 million (except

for its ferry business) which invariably provide a better return

to the shareholders in the long run. In summary, the GMD

enlightened that there is an opportunity for MMC to invest with

different sizes of investment which eventually portrays a

substantial difference between the disposal and acquisition sum

in the accounts.

Mr. Mootha a/l Bass highlighted that there were some dignitaries

were under the Malaysian Anti-Corruption Commission (“MACC”)

investigation list and hoped that none of MMC directors is in

the said list. The GMD explained that new directors of MMC would

have to undergo a background check with MACC prior to their

appointment to the Board of MMC.

5) Mr. Leo Ann Puat highlighted that based on the Profit and Loss

Account, the interest on borrowings has increased compared to

previous year. In light thereof, he sought clarification

whether there is policy to reduce the gearing of the Group. The

Chairman informed that the Management had taken steps to manage

the gearing. In addition, the Group would continuously be

looking at new ways of refinancing the debts and reducing the

interest rates accordingly.

6) Mr. Ng Aik Pheng commented that the share price of MMC should

have performed better. The GMD explained that the share price

had increased from RM2.33 at the end of 2016 to RM2.54 which

shows an increase of 21.4%.

of 11

7) Mr. Shak Kum Choy enquired on the risk of probable reduction of

containerized shipment and its implication to the port business.

He made reference to the closure of smaller ports in Singapore.

The GMD explained that in MMC Group, only PTP is involved in

transshipment business. He further expressed confidence that the

future for PTP in transshipment business is bright and the

business will continue to grow. He further explained that

Singapore Government has closed smaller ports and expanded Tuas

Port to enable the port to handle more capacity which denotes

that the transshipment business is expanding. Therefore, PTP

needs to be ready to expand to cater for the increasing volume

of transshipment business.

Mr. Shak Kum Choy further enquired whether there is any increase

in freight cargo in Senai Airport and the strategy to increase

the same. The GMD responded that MMC had undertaken a study and

the results have shown that the Senai Airport connectivity is

not extensive compared to KLIA. Instead of depending on the

limited extension in Senai, the company has started the truck

services from Senai to KLIA. The GMD further added Air Asia had

started a new route from Johor Bahru to India which is expected

to increase the connectivity and thus give rise to the expansion

of freight cargo accordingly.

Mr. Shak Kum Choy sought clarification whether any of MMC ports

requires dredging and if so whether MMC is given the contract to

provide the said works. The GMD explained that most of the ports

under MMC do not require much dredging. However, the current

wharf in certain ports needs to be deepened. In terms of the

dredging works, the GMD explained that MMC would have to deal

with a third party company which has the capability and

resources to undertake the works.

Mr. Ng Aik Pheng commented that some years back, Anglo Oriental

used to own a licence to undertake the dredging works. The

Chairman informed that since MMC is operating most of the major

ports in Peninsular Malaysia, there is a possibility of MMC,

through a subsidiary to carry out dredging works. Nevertheless,

it would require further study and analysis by MMC on the

matter.

8) Ms. Chong Siew Yoon highlighted on the increasing trend to use

road and railway as the mode of transport to carry freight as

the cost will be lower with a shorter time frame to reach the

destination. In such situation, she enquired whether there is

any threat to the existing port business. The GMD explained that

shipping is still the most cost effective way of transporting

goods whilst the land transportation will complement the sea

transportation.

Since there were no further questions, the Chairman declared that the

Audited Financial Statements of the Company for the Financial Year

Ended 31 December 2016 and the Directors’ Report and Auditors’ Report

thereon be received.

of 11

AGENDA 2

DECLARATION OF A FINAL SINGLE-TIER DIVIDEND OF 4.0 SEN PER SHARE

Mr. Mootha Kumaran A/L Bass proposed that Ordinary Resolution 1 be

approved.

Before putting the motion to the Meeting, the Chairman invited

questions from the floor.

Since there were no questions raised by the shareholders, the

Chairman proceeded to Resolution 2.

AGENDA 3

PAYMENT OF DIRECTORS’ FEES AMOUNTING TO RM1,200,000 TO THE

NON-EXECUTIVE DIRECTORS OF THE COMPANY

Mr Mootha Kumaran A/L Bass proposed that Ordinary Resolution 2 be

approved.




Chairman proceeded to Resolution 3.

AGENDA 4

RE-ELECTION OF DATUK OOI TEIK HUAT PURSUANT TO ARTICLE 78 OF THE

COMPANY’S CONSTITUTION

Mr Saiful Idham Yusof proposed that Ordinary Resolution 3 be

approved.



Since there were no questions raised, the Chairman proceeded with

Resolution 4.

AGENDA 5

RE-ELECTION OF DATO’ ABDUL HAMID SH MOHAMED PURSUANT TO ARTICLE 78 OF

THE COMPANY’S CONSTITUTION

Ms Syarifah Aisyah Syed Abd. Rahman proposed that Ordinary Resolution

4 be approved.



Since there were no questions raised, the Chairman proceeded with the

next agenda.

of 11

AGENDA 6

RE-APPOINTMENT OF MESSRS. PRICEWATERHOUSECOOPERS AS AUDITORS OF THE

COMPANY AND TO AUTHORISE THE DIRECTORS TO FIX THEIR REMUNERATION

Mr Saiful Idham Yusof proposed that Ordinary Resolution 5 be

approved.



Since there were no questions raised, the Chairman proceeded to the

special business of the 41st AGM.

AGENDA 7

TO APPROVE THE CONTINUING IN OFFICE BY DATO’ ABDULLAH MOHD YUSOF AS

AN INDEPENDENT NON-EXECUTIVE DIRECTOR OF THE COMPANY AND TO HOLD

OFFICE UNTIL THE CONCLUSION OF THE NEXT ANNUAL GENERAL MEETING OF THE

COMPANY

Ms Syarifah Aisyah Syed Abd. Rahman proposed that Ordinary Resolution

6 be approved.




Chairman proceeded to the last agenda of the meeting.

AGENDA 8

TO APPROVE THE CONTINUING IN OFFICE BY DATUK OOI TEIK HUAT AS AN

INDEPENDENT NON-EXECUTIVE DIRECTOR OF THE COMPANY AND TO HOLD OFFICE

UNTIL THE CONCLUSION OF THE NEXT ANNUAL GENERAL MEETING OF THE

COMPANY

Mr Saiful Idham proposed that Ordinary Resolution 7 be approved.




Chairman proceeded with the voting of all the resolutions tabled at

the meeting. Prior to the commencement of the voting, the Chairman

called upon the Company Secretary to brief the e-polling process.

Upon completion of the briefing, the Chairman informed the

shareholders that the casting and verification of the votes would

take approximately 20 minutes. He further requested the shareholders

to return to their seats after e-voting for the announcement of the

results. The Chairman placed on record that several shareholders have

appointed him to be their proxy and will vote per their instructions.

of 11

At 12:45 pm, the Chairman called the Meeting to order and announce

the results of the e-polling as follows:

1) Declaration Of A Final Single-Tier Dividend Of 4.0 Sen Per Share

Resolution FOR AGAINST

Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 1

2,779,407,70

9

99.9998 6,600 0.0002

The Chairman declared that Ordinary Resolution 1 carried.

2) Payment Of Directors’ Fees Amounting To RM1,200,000 To The

Non-Executive Directors Of The Company


Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 2

2,779,272,609 99.9996 12,400 0.0004


3) Re-Election Of Datuk Ooi Teik Huat Pursuant To Article 78 Of The

Company’s Constitution


Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 3

2,218,928,009 99.9906 207,800 0.0094


4) Re-Election of Dato’ Abdul Hamid Sh Mohamed Pursuant To Article

78 Of the Company’s Constitution


Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 4

2,217,494,109 99.9261 1,639,700 0.0739


of 11

5) Re-appointment Of Messrs. PricewaterhouseCoopers as Auditors of

the Company and to Authorise the Directors To Fix Their

Remuneration


Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 5

2,779,284,409 99.9953 129,900 0.0047


6) To Approve The Continuing In Office By Dato’ Abdullah Mohd Yusof

As An Independent Non-Executive Director Of The Company And To

Hold Office Until The Conclusion Of The Next Annual General

Meeting Of The Company


Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 6

1,759,822,909 79.3022 459,310,900 20.6978


7) To Approve The Continuing In Office By Datuk Ooi Teik Huat As An

Independent Non-Executive Director Of The Company And To Hold

Office Until The Conclusion Of The Next Annual General Meeting

Of The Company


Number of

Shares

% Number of

Shares

%

Ordinary

Resolution 6

2,010,472,50

9

90.5971 208,663,100 9.4029


NOTE OF APPRECIATION TO TAN SRI DATO’ IR. (DR.) WAN ABDUL RAHMAN WAN

YAACOB

On behalf of the Board, the Chairman recorded his appreciation to Tan

Sri Dato’ Ir. (Dr.) Wan Abdul Rahman Wan Yaacob, who retired at the

conclusion of the 41st AGM. The Board recognised his utmost commitment

and invaluable contribution to the company throughout his 18 years

with the company.

of 11

CLOSE OF MEETING

The Chairman expressed his appreciation to shareholders present for

their attendance.

There being no other business, the Meeting was declared closed at

1:15 p.m. with a vote of thanks to the Chairman.

Confirmed by,

- signed -

……………………………………………………………

Chairman

11 May 2017

Kuala Lumpur

MMC Corporation Berhad

Corporate Presentation

March 2017

2

MMC : PART OF A LARGER ALBUKHARY GROUP

• Automotive• Services• Property,

assets & construction

• Ports & Logistics• Energy & Utilities• Engineering &

Construction

Charitable trust

• Plantations• Rubber• Food

Tradewinds PlantationBerhad

Tradewinds CorporationBerhad

• Hotels• Property

development

MMC CorporationBerhad

DRB-Hicom Berhad

3

MMC HAS SEEN STRONG ASSET GROWTH OVER THE YEARS

7.9

10.0

32.9

37.5

40.6

45.4

2003▪ Tan Sri Syed Mokhtar Albukhary becomes substantial shareholder of MMC▪ Construction of SMART Tunnel by MMC-Gamuda JV

2005▪ Increased stake in Pelabuhan Tanjung Pelepas from 50.1% to 70.0%▪ Acquired 51.7% of Johor Port

2006▪ Acquired remaining stake in Johor Port Berhad

2007▪ Increased stake in Malakoff from 22.1% to 51.0%▪ Acquired a 20.0% stake in Red Sea Gateway Terminal▪ Completed SMART Tunnel

2008▪ Acquired 74.0% of Aliran Ihsan Resources Berhad

2009▪ Full acquisition of Senai

Airport

2011▪ Appointed as

PDP for KVMRT Line 1

2012▪ Listing of Gas Malaysia

Berhad▪ Acquired remaining stake

in Aliran Ihsan Resources Berhad

▪ Awarded tunnelling job for KVMRT Line 1

2014 - 2015▪ Listing of Malakoff▪ Acquired 86.7% of NCB Hldg Bhd▪ Appointed as Project Delivery

Partner for KVMRT Line2▪ Completion of EDTP project▪ Additional 2 berths at PTP▪ Secured 3 mega projects: Langat 2,

Langat Sewerage & PengerangCogen

▪ Awarded 2 new contracts for Zelan –MOLF Jetty & Kuala Terengganu Drawbridge

2016 - 2017▪ Acquired 70% of Tanjung Bruas Port▪ Disposal of MMCOG▪ Acquired 49% of Penang Port▪ Hold 99.08% of NCB Holdings Berhad▪ Awarded KVMRT Line 2 Tunneling works▪ Awarded PDP Pan Borneo Sabah Highway

3MMC Corporation BerhadAssets (Rm bil)

34.4

36.8

53.7As at Dec 2016

4

DIVERSIFIED INFRASTRUCTURE CONGLOMERATE

The Port of Tanjung Pelepas

▪ Transshipment hub▪ 70% shareholding▪ 30% owned by APMT

Johor Port Berhad

▪ Wholly-owned by MMC▪ A multi-purpose port

NCB Holdings

▪ 99% shareholding

Malakoff Corporation Berhad

▪ Power and water generation company

▪ 37.6% shareholding

Gas Malaysia Berhad

▪ Natural gas distribution company▪ 30.9% shareholding

Aliran Ihsan Resources Berhad

▪ Wholly-owned by MMC▪ A water treatment specialist

MMC-Gamuda Joint Venture Sdn Bhd

▪ PDP for KVMRT Line 1 and 2▪ Main contractor for underground

package of KVMRT Line 1 and 2

SMART Tunnel

▪ First of its kind, dual purpose tunnel


Zelan Berhad

▪ Engineering & Construction company.

▪ 39.2% shareholding

MMC Engineering Services▪ Wholly-owned by MMC▪ Pengerang Co-gen Plant project.▪ Langat 2 Water Treatment Plant.

MMC Pembetungan Langat SB▪ Wholly-owned by MMC▪ Langat Centralized Sewage

Treatment.

Ports & Logistics Energy & Utilities Engineering & Construction

UEM MMC JV SB▪ 50:50 JV▪ The JV through 40% stake in Borneo

Highway PDP Sdn Bhd (BHP) awarded with PDP role for Pan Borneo Highway (Sabah portion)

Penang Port Sdn Bhd


Red Sea Gateway Terminal (RSGT)


Senai Airport Terminal Services Sdn Bhd

▪ Wholly-owned by MMC▪ Airport operations

KMB Seaport (Tg. Bruas)


5,054 4,609

444 673

294 550

5

FY2016 Revenue Breakdown

FY2016 PATMI Breakdown

Revenue & Profitability (YoY) Borrowings Breakdown (RM billion)

47%

Revenue PBT PATMI

GROUP FINANCIAL HIGHLIGHTS

RM3.1 b

As at December 2016

RM1.4 b

RM0.7 b

RM2.7 b

RM0.6 b

Total borrowings: RM9,047 mil

Shareholding StructureAs at December 2016

FY2015

FY2016

87%

* *

*Excluding gain on Malakoff IPO: RM1,349 mil

9%

Seaport Terminal

(Johore) SB, 51.76

PNB, 20.28

EPF, 4.93

KWAP, 3.45

LTH, 6.90

Foreign, 4.22

Local, 8.45

MMCB, 3,196 , 35%

PTP, 2,546 , 28%

JPB, 645 , 7%

NCB, 349 , 4%

MMC Port, 1,411 , 16%

SATS, 561 , 6%

Others, 339 , 4%

59%33%

8%

41%

21%

39%

Ports & Logistics

Engineering & Construction

Energy & Utilities

Corp. & Others

Northern Region

▪To become the high-tech electronics hub▪Agricultural projects

Central Region

▪National Load Centre▪Handles 35.0% of

Malaysia’s seaborne trade

Iskandar Region

RM188 billion investments in various sectors since 2006 – Nov ‘15

Ports are strategically located on the more industrialized southern & western coast

5 Terminals in Malaysia and 1 in Jeddah

PTP

Johor Port

Penang Port

Northport

MMC Ports Capacity: 19.3 mil TEUs 2015 Throughput: 14.1 mil TEUs

• Approximately 58% of Malaysian container market share

• Approximately 34% market share of Malaysia’s conventional cargo throughput (excluding LNG).

Melaka Port

MALAYSIA’S LARGEST PORT OPERATING GROUP

89.1 81.0

69.3 63.8 60.5

36.2 27.2

14.1 14.0 13.5

Co

sco

/ Ch

ina

Sh

ipp

ing

Hu

tsh

iso

n

AP

MT

PS

A

DP

Wo

rld

Te

rmin

al

Inve

stm

en

t

Ch

ina

Me

rch

an

ts

MM

C P

ort

s

Eu

rog

ate

Ha

nji

n

Global International Terminal Operators (total mil TEU basis)1

23

4 56

7 89 10

Source: Drewry Annual Report 2016*internal ranking

*

Volume handled (in mil TEU): PTP (9.1), JPB (o.8), Northport (2.8), PPSB (1.3)

6

Hu

tch

iso

n

7


PORTS & LOGISTICS DIVISION

8

FROM GREENFIELD INTO A WORLD CLASS TRANSSHIPMENT HUB

1990s 1997 2002 2004 2005 2008 2012 2014 2015

Commissioned - PTP official opening

- Maersk Line shifts its SEA hub to PTP

- Evergreen shifts its SEA hub to PTP

- PTP reached 4 mil TEUs

- MMC increase stake to 70%

- CMA CGM starts calling PTP

- PTP reached 6 mil TEUs

- Capacity 8.5 mil TEUs

- Completion of Berth 13 & 14

- Capacity 10.5 mil TEUs

- Handled 8.5 mil TEUs

-2M Alliance commence

- PTP reached 9.1mil TEUs

Undeveloped area World’s leading transhipment hub

2.02.7

3.54.0 4.2

4.85.5 5.6

6.06.5

7.5 7.7 7.6

8.59.1

8.3

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

20

14

2015

20

16

9

LEADING TRANSSHIPMENT HUB

▪ 70:30 Joint venture with APM Terminal (which

owns Maersk Line – the largest shipping liner in

the world).

▪ 14 berths forming 5.04 km of linear wharf.

▪ Handled 8.3 million TEUs in 2016.

Volume (TEUs in mil)

Volume Handled by Major Container TerminalsGeographical Advantage &

Global ConnectivityTEUs, in mil 2013 2014 2015 2016

Malaysia

PTP 7.62 8.52 9.12 8.30

Westports 7.47 8.37 9.05 9.90

Northport 2.88 2.57 2.83 3.22

Penang Port 1.24 1.30 1.32 1.40

Johor Port 0.76 0.79 0.8 0.83

TEUs, in mil 2013 2014 2015

Regional

Shanghai 33.62 35.29 36.5

PSA 32.24 33.55 30.6

Hong Kong Port 22.29 22.28 20.1

Shenzhen 23.28 21.69 24.5

10

MALAYSIA’S SOUTHERN GATEWAY

1986 1996 2004 2006 2014 2015

Commencement of Phase II operations (Dry Bulk & Liquid Non-edible Jetty)

Listed onmainboardKLSE.

Certified as an LME port and listed on LME

(London Metal Exchange).

100%subsidiary ofMMCCorporation;JPB delisted.

Largest Palm Oil Terminal in the worldRanked 6 out of 35 worldwide LME

accredited portsMain gateway for Southern

Malaysia's import/export requirements.

1.2 1.2 1.2 1.1 0.9 1.0 1.1

10.8 11.6 10.6 10.6 11.1 12.7 12.0

3.7 4.1 4.6 5.3 4.8 4.4 4.4

9.9 9.4 9.5 10.0 10.5 10.6 10.3

2010 2011 2012 2013 2014 2015 2016

Throughput

break bulk Liquid bulk dry bulk container

25.6

11


▪ JPB have a designed capacity of 40 mil MT with

24 berths spanning 4 km.

▪ Volume handled in 2016 was 27.8 mil MT

▪ World's largest palm oil terminal - Storage

capacity of 460,000 MT.

▪ Ranked 6th in the world in terms of London Metal

Exchange volume of 430,000 MT for the storage

and handling of non-ferrous metal.

▪ No. of berths : 3

▪ Quay length : 710m

▪ Capacity: 1.2 mil. TEUs

▪ Max depth : 14m

Container Break BulkLiquid BulkDry Bulk



▪ Max depth : 13.8m


▪ Quay length : 2,292m





MALAYSIA’S SOUTHERN GATEWAY

25.9 27.0 27.328.7

27.826.3

THE PIONEER IN THE MARITIME TRADE

1901 1963 / 64 1973 1986 2000 2014

- Official opening of Port Swettenham

- Managed by Malayan Railway Administration (MRA).

The beginning of containerization at Northport

The KlangContainer Terminal (KCT) became first privatization exercise in Malaysia.

MMC emerged as a substantial shareholder of NCB Holdings

Management of port handed over to PortKlang Authority (PKA) with the completion of 4 berths.

Restructuring exercise by PNB –the birth of NCB Holdings

12

13

Engineering & Construction• Situated in Port Klang, Northport provides both

conventional and containerized cargo handling

facilities.

• Its container terminal have an annual capacity of 5.6

mil TEUs, with 12 berths spanning over 4.1km in quay

length.

• Northport is undergoing an expansion program to

push its installed capacity to 6.2 mil TEUs.

Profit after taxation

HIDDEN GEMS

Conventional Cargo

3.23.23.0 2.9

2.62.9

Container Volume

7.217.75

8.23

9.84

8.28 8.38 8.01

2010 2011 2012 2013 2014 2015 2016

1.8 1.7 1.61.4 1.5 1.5

1.41.3 1.3

1.21.4

1.7

2011 2012 2013 2014 2015 2016

TE

Us,

in m

il

Local Transshipment

149

135

126

52

28

22

104

147

147 16

7

127

83

78

119

(5)(18)

(43)

(75)(56) (59)

(6)

2010 2011 2012 2013 2014 2015 2016

NCB Northport KN

14


ENERGY & UTILITIES DIVISION

15


▪ Local generation capacity grew from 3,760 MW in 2007 to 6,350MW

(29% of generation capacity in Peninsular Malaysia).

▪ Aspire to double generation capacity to 10,000 MW by 2020, with a mix of

70:30 for local and international.

▪ Leverage on land bank with long remaining land leases life with ~47 years for

further capacity expansion or contract extension beyond life of existing PPAs.

▪ Pursue additional investments or acquisitions with attractive returns.

Malaysian Independent Power Generation International Independent Water Production & Power Generation

Prai Power Plant350 MW100% Owned

SEV Power Plant1,303 MW94% Owned

GB3 Power Plant640 MW75% Owned Kapar Power

Plant2420 MW40% Owned

Port Dickson Power Plant440 MW100% Owned

Tanjung Bin Power Plant2100 MW 90% Owned

Tanjung Bin Energy Power Plant1,000 MW

100% Owned

Total power generating capacity2,229 MW (Gross)690 MW (Net)

Total water desalination capacity1,831,000 m 3/day (Gross)444,800 m3/day (Net)

Total power generating capacity8,253 MW (Gross)6,350 MW (Net)

Souk Tleta IWP200k m3/day36% Owned

Hidd IWPP410k m3/day900 MW 40% Owned

Al Ghubrah IWP 191k m3/day45% Owned

Shuaibah Phase 3 Expansion IWP150k m3/day12% Owned

Shuaibah Phase 3 IWPP880k m3/day900 MW12% Owned

Macarthur Wind Farm420 MW50% Owned

INTERNATIONAL POWER & WATER PLAYER

112 108118

125 128139

148159

164

2008 2009 2010 2011 2012 2013 2014 2015 2016

Mil

MM

Btu

16


▪ Natural Gas - Cost efficient and environmentally friendly.

▪ Sole supplier in Peninsular Malaysia since 1993.

▪ Serves 819 industrial customers, 2,260 commercial customers and

35,298 residential customers (FY2016).

▪ Over 2,000km of pipeline across Peninsular

Gas Malaysia Berhad

▪ Specialises in the full spectrum of water treatment, with 20 years

experience in operations, maintenance and rehabilitation of

facilities.

▪ Currently operates and manages 3 water treatment plants in

Perak (Taiping, Gunung Semanggol and Kuala Kangsar), Malaysia

Aliran Ihsan Resources Berhad

Currently, MMC is exploring opportunities to develop and maintain a

modern and efficient sewerage system for the Malaysian public.

GMB has ventured into virtual pipeline and combined heat and power

(CHP) projects as well as supplies compressed natural gas (CNG)/

liquefied natural gas (LNG) for the transportation industry.

GAS DISTRIBUTION & WATER TREATMENT

17


ENGINEERING & CONSTRUCTIONDIVISION

No. Project JV PartnerValue

(RM mil)Award Date

Duration

1 Langat Sewerage Project N/A 1,505 Oct 2014 6 years

2 Langat 2 Water Treatment PlantSalcon and

Ahmad Zaki 1,000 April 2014 3 years

3MRT Line 1: Sg. Buloh- Kajang (41.5km) -Project Delivery Partner

Gamuda 13,000 Jan 2012 5 years

4MRT Line 1: Sg. Buloh-Kajang (9.5km) -Underground

Gamuda 8,280 Feb 2012 5 years

5MRT Line 2: Sg. Buloh – Putrajaya(38.7km)Project Delivery Partner

Gamuda 12,000 2014 5 years

6MRT Line 2: Sg. Buloh – Putrajaya (13.5km)Underground

Gamuda 15,470 2016 6 years

7 RAPID COGen Plant Siemens 3,500 2014 3 years

8 Pan Borneo Highway Sabah – PDP role UEM 12,860 April 2016 6 years

Total Project Value 67, 615

MMC’s effective remaining orderbook 19,669

ON GOING PROJECTS: ORDERBOOK STANDS AT RM19.7 BIL

18

KVMRT PDP Role – Line 1 & 2KVMRT (Tunnel) – Line 1 & 2

Project Delivery Partner for SBK line and SSP line of KVMRT project

Construction of tunneling works for KVMRT SBK line 1 (9.5km) and SSP line 2 (13.5km)

Pan Borneo Highway – PDP role

Project Delivery Partner for Pan Borneo Highway of 706km (Sabah portion)

Langat Centralized Sewage PlantLangat 2 Water Treatment Plant

Construction of a sewer pipe network in Langat river basin catchment

Construction of 1,130 MLD water treatment plant and water reticulation system in Langat.

Pengerang Co-gen

Project Value: RM8.3 bil (line 1)RM15.5 bil (line 2)

Project Value: RM13.0 bil (line 1)RM12.0 bil (line 2)

Project Value: RM12.8 bil

Project Value: RM993.9 mil Project Value: RM1.5 bil Project Value: RM300 mil

ON GOING MEGA PROJECTS

Undertaking civil and infrastructure facilities work for Co-gen plant in RAPID, Pengerang.

19

1.17 1.22 1.32 1.33 1.80 2.07 2.23 2.35

0.14 0.02 0.02 0.05

0.19 0.25

0.36 0.48

2009 2010 2011 2012 2013 2014 2015 2016

Domestic International

20

GATEWAY TO ISKANDAR MALAYSIAGATEWAY TO ISKANDAR MALAYSIA

▪ Airport was constructed in 1974

▪ 50 years Concession Agreement with Federal

Government of Malaysia for total airport land of

1,225 acres

▪ Currently has a 2.5 million passenger capacity,

easily extendable to 4.0 million

▪ Handled 2.83 million passengers in 2016, up

9.7% YoY.

▪ Air Asia operates 5 International routes

currently; Surabaya (7x weekly), Jakarta (3x

weekly), Ho Chi Minh (7x weekly), Bangkok (4x

weekly) and Guangzhou (7x weekly).

▪ Senai Airport remains committed to grow its

passenger especially the international segment

through establishing more new routes from

Senai.

▪ Future increase in passengers from Forest City

development and Pengerang RAPID project.

Mill

ion

pas

sen

ge

r

Domestic paxCAGR: 9%

International paxCAGR: 17%

Guangzhou

2.832.59

2.32

1.991.38

1.341.241.31

21

HUGE POTENTIAL FOR EXPANSION

Year 2003 – 2012 (10 Years)• Upgrading of the passenger terminal, • Construction of the cargo terminal, • Enhancement of aerodrome and facilities,• Development of commercial, free zone and aviation

park

Year 2013 – 2022 (10 Years)• Senai Airport Aviation Park (“SAAP”)

Commercial Zone

Airside Development

Terminal Building

Cargo Centre

Aviation Park Phase 1

Aviation Academy

Airport Free Zone

22

Airport Runway

Airside Perimeter

Commercial Zone Approx. 20 acres

SENAI AIRPORT FREE INDUSTRIAL ZONE (SAFIZ)

Total area: 63 acresLand available: 8.3 acres

2012 2013 2015

▪ Leased to Celestica▪ Industrial warehouse

▪ Leased to Pokka▪ Beverages factory

▪ Leased to 25 ac. To PALI▪ Warehouse distribution center

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=NksArdG4FC7ycM&tbnid=jtS1kSBB2bvDvM:&ved=0CAUQjRw&url=http://www.blueskysolar.utoronto.ca/sponsors-2013/&ei=JwgMU9zwIsSXrgfq1YBo&bvm=bv.61725948,d.bmk&psig=AFQjCNGboIW0mpQTuJ9MJNxayBjlkvwKQw&ust=1393383735873792

http://www.google.com.my/url?sa=i&rct=j&q=pokka&source=images&cd=&cad=rja&docid=orL0W11HLxUluM&tbnid=CHhhip6KXYar_M:&ved=0CAUQjRw&url=http://www.bravis.com/en/pokka_sapporo/proj329.html&ei=uLaJUZOFJsThrAfK5oDABA&bvm=bv.46226182,d.bmk&psig=AFQjCNGa6g2fHI8T9HG1igRAhjKw7TANag&ust=1368066083396178

23


A WORK-LIVE-DEVELOP-MEET-PLAY ENVIRONMENTSENAI AIRPORT CITY

The Senai Airport City consists of an integrated2,718.68 acres of free zone and mix industriesdevelopment located adjacent to the SenaiInternational Airport.

The Senai Airport City will be developed as apremier development with an integrated Work-Live-Develop-Meet-Play environment.

The Park will provide industrial vacant plots, ready-built factories, office, incubators and laboratoriesfacilities for rental to potential investors.

The main components of the Senai Airport City development are :

ZONE 1 : 1,039 acres will be developed into a High-Technology IndustrialPark

ZONE 2 : 1,027 acres as a free zone Cargo and Logistics Park

ZONE 3 : 651 acres to be developed into a Commercial and ResidentialPark

24

UNLOCKING VALUE THROUGH LAND SALESENAI AIRPORT CITY

SENAI AIRPORT CITY

Available Land Area: 2,104 acres

2,718

Acres of integrated development land with a masterplan comprising industrial, commercial and residential properties

365

Acres of free industrial zone. Phase 1 – 180 acres of free industrial zone completed with custom building, check point, CCTV and perimeter fencing

Infrastructure

Completed with infrastructure ready via underground connectivity i.e. electricity, water, telecommunication and specialty industrial gasses

Access & Connectivity

Highway network to North-South expressway linked to Port of Tanjung Pelepas, Singapore & Kuala Lumpur, Senai-Desaru expressway connecting to Johor Port

63 ac

87ac

196 ac

294 ac

Sold 573ac

Leased 66ac

Available FIZ Lease 353ac

Phase 2 Expansion 490ac

MRO

MIXED DEVELOPMENT

MIXED DEVELOPMENT

25

TANJUNG BIN PETROLEUM & MARITIME CENTER

2,255 acres

▪ Land area: 1,588 acres with 1.9km shoreline

▪ Lettable plot:

➢ Heavy Industry – 653.4 acres

➢ Medium Industry – 253.5 acres

➢ Commercial Plot – 85.3 acres

▪ Ecotourism – Mangrove Park: 217 acres

PHASE 2

PHASE 1

PHASE 2 FUTURE EXPANSION

▪ 123 acres

▪ 30-year land lease

▪ 41 storage tanks

Sg Pulai Bridge & road network – reduce travellingtime from main highway, PTP & Senai Airport

▪ Land area: 667 acres with 1.7km shoreline

▪ Lettable plot:

➢ Heavy Industry – 210 acres

➢ Medium Industry – 69 acres

➢ Commercial Plot – 39 acres

▪ Basic utilities infrastructure in place

▪ Free Industrial Zone status

▪ Phase 1 – almost fully reclaimed available immediately

▪ Common liquid jetties – plan for 7 jetties

PHASE 1

26

Thank You

Group Strategy MMC Corporation Berhad

+603 2071 1122 [email protected]

mailto:[email protected]

27

DISCLAIMER

This presentation is not intended to form the basis of any investment decision with respect to MMC Corporation Berhad(MMC). Neither this presentation nor anything contained herein shall form the basis of, or be relied upon in connectionwith, any contract or commitment whatsoever. This Presentation is solely based upon Information of MMC. Norepresentation or warranty, express or implied, is or will be made by MMC in relation to, and no responsibility or liability isor will be accepted by MMC as to the accuracy and completeness of, the Information made available, and any liabilitytherefore is expressly disclaimed.

This Presentation contains “forward-looking statements”. Forward-looking statements by their nature involve known andunknown risks, uncertainties and other factors that are in many cases beyond MMC’s control. Although MMC believes thatthe expectations of its management as reflected by such forward-looking statements are reasonable based on informationcurrently available to it, no assurances can be given that such expectations will prove to have been correct. Accordingly, youare cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only asof their dates, and MMC undertakes no obligation to update or revise any of them., whether as a result of new information,future events or otherwise.

This presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized,disclosed referred or passed on to others at any time without the prior written consent of MMC.

Investor Relations | www.mmc.com.my

mmc corporation berhad 41 annual general meeting ( agm … · 2017. 9. 19. · page 1 of 11 mmc...

Documents