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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
1QFY2018Results Presentation
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
DisclaimerThe 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 material information concerningthe Company or its subsidiaries. None of the Company or any of their members, directors, officers, employeesor affiliates nor any other person accepts any liability (in negligence or otherwise) whatsoever for any losshowsoever arising from any use of this presentation or its contents or otherwise arising in connectiontherewith.
This presentation contains statements that constitute forward‐looking statements which involve risks anduncertainties. These statements include descriptions regarding the intent, belief or current expectations ofthe Company with respect to the consolidated results of operations and financial condition, and future eventsand plans, of the Company. These statements can be recognized by the use of words such as "expects","plans", "will", "estimates", "projects", or words of similar meaning.
Such forward‐looking statements do not guarantee future performance and actual results may differ fromthose in the forward‐looking statements as a result of various factors and assumptions. You are cautioned notto place undue reliance on these forward‐looking statements, which are based on the current view of themanagement of the Company on future events. The Company does not undertake to revise forward‐lookingstatements to reflect future events or circumstances. No assurance can be given that future events will occur,that projections will be achieved, or that the Company’s assumptions are correct.
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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Presentation Outline
Financial Highlights
Outlook, Strategies and Recent Developments
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Financial HighlightsFinancial Highlights
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
*: Includes distribution expenses and administrative expensespp: Percentage points#: Based on 111,281,821 weighted average number of shares for 1QFY2018 (1QFY2017: 111,281,821). NM: not meaningful
Financial SummaryGroup was profitable for the quarter and gross margins improved but weak market sentiments and
strong competition continued to weigh down performance
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Financial Highlights1QFY2018 1QFY2017 ChangeS$’000 S$’000 %
Revenue 18,888 19.426 (2.8)
Gross Profit 5,006 3,865 29.5
Gross Profit Margin 26.5% 19.9% 6.6 pp
EBITDA 1,936 2,071 (6.5)
Other Income 491 430 14.2
Operating Expenses* 5,239 5,265 (0.5)
Net Profit Attributable to Owners of the Company 106 191 (44.5)
Net Profit Margin 0.6% 1.0% (0.4) pp
Basic EPS (cents)# 0.10 0.17 (41.2)
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Revenue
97.6 105.2 91.5
108.4
19.4 18.9
25.1
19.5
26.1
‐
30.0
60.0
90.0
120.0
Revenue S$’ million Quarterly Analysis
1Q
2Q
3Q
4Q
1QFY2017S$19.4m
1QFY2018S$18.9m
Decrease in Revenue
After‐sales and
distribution business
segments were
affected by weak
market sentiments
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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Profitability Trend (Gross Profit / Gross Profit Margin)Gross Profit S$’ million
Gross Profit Margin
22.9 27.3 27.6 26.9
3.9 5.0 5.3
4.7
7.9
23.5%26.0%
30.1%
24.8%
19.9%
26.5%
0.0%
10.0%
20.0%
30.0%
40.0%
‐
10.0
20.0
30.0
40.0
1Q
Quarterly Analysis
1QFY2017S$3.9m
1QFY2018S$5.0m
Increase in Gross Profit
and GPM
Despite revenue
decrease, GP and GPM
improved as a result of
better margins achieved
from sales and the
completion of certain
better margin projects
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2Q
3Q
4Q
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
11.4
6.1 5.3 7.9
0.2 0.1 0.1 0.80.5*
11.7%
5.8% 5.7%7.3%
1.0% 0.6%
‐15.0%
‐5.0%
5.0%
15.0%
25.0%
‐
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Profitability Trend (Net Profit / Net Profit Margin)Net Profit S$’ million
Quarterly Analysis
Net Profit Margin
1Q
1QFY2017S$0.2m
1QFY2018S$0.1m
Lower Net Profit and NPM
Tough conditions, lower
sales resulted in
decreased Net profit
and NPM
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2Q
3Q
4Q
*Excluding one‐time non‐cash impairment of S$2.6 million in relation to intangible assets in 4QFY2016
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
13.9
8.9 9.3 13.4
2.1 1.9
1.9 2.7
2.0
14.2%
8.5%10.1%
12.4%10.7% 10.2%
‐15.0%
‐5.0%
5.0%
15.0%
25.0%
‐
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
4Q
Profitability Trend (EBITDA / EBITDA Margin)EBITDA
S$’ million EBITDA Margin
1Q
1QFY2017S$2.1m
1QFY2018S$1.9m
Lower EBITDA and
EBITDA Margin
Lower EBITDA due to
sales generated and
lower net foreign
exchange gain
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2Q
3Q
Quarterly Analysis
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
1.0 1.0 0.8
2.0
0.5
0.2 0.2
3.6% 3.1% 3.6%5.0%
1.6%
‐5.0%
0.0%
5.0%
10.0%
‐
0.5
1.0
1.5
2.0
2.5
3.0
Dividend Special Dividends Dividend Yield
Dividend Trend (Dividends / Dividend Yield)Dividend
Singapore Cents Dividend Yield
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4‐to‐1 share consolidation on Feb 22, 2016
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Balance Sheet 31 July 2017S$’000
30 April 2017S$’000
Property, plant and equipment 67,538 68,707
Intangible assets 11,624 11,833
Inventories 25,309 30,550
Trade and other receivables 15,128 23,068
Contract work‐in‐progress 13,868 10,980
Cash and short‐term fixed deposits 26,652 25,618
Loans and borrowings 72,078 74,049
Total equity attributable to owners of the company 65,848 66,380
Net gearing ratio 0.69 0.73
Net asset value per ordinary share (S$’ cents)# 59.17 59.65
Balance Sheet
#: Based on 111,281,821 number of shares
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Outlook & StrategiesOutlook, Strategies& Developments
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Outlook
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• Softer demand for marine related products and lower activity in the offshore marine industry
• Intense competition across all segments pressuring profit margins
Underlying factors such as weak oil prices and lacklustre vessel charter rates have yet to improve
• Groundwork set for Group to build more presence in the marine and industrial sectors
• Group is also seeking viable opportunities in new markets which includes but is not limited to Myanmar
Actively pursuing viable opportunities
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Growth StrategiesExploration of New Revenue Streams
Securing new customers in
emerging markets
Concerted efforts when pitching for
projects
Prudence, Productivity and Economisation
Capitalize on foundation for
growth
Focus on efficient practices
• Build on established assembly line for in-house brands
• Working closely with identified partners
• Improve upon existing operational & accounting practices
• Leaner operating structure & prudent management• Stricter cost control measures
• Actively exploring potential new markets
• Capitalize on enlarged client base• Leverage on expertise as a total
solutions provider for marine and industrial power generating needs
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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Recent Developments• Aug 2017 – Entered into joint venture through XMH Engineering Pte. Ltd. with
Myanmar Marcopolo Co., Ltd and Bulox Power Pte. Ltd.
− The Joint Venture Entity has an authorised capital of US$50 million and an issued and paid‐up sharecapital of not less than US$1 million (XMH stake of 50%)
• Feb 2017 – Entered into a non‐binding MOU with Myanmar MarcoPolo
− Entered into a non‐binding memorandum of understanding (“MOU”) with Myanmar MarcoPolo Co.,Ltd (“MMP”) in relation to the incorporation of a joint venture company in Myanmar
• Feb 2016 – Completion of the move into the new facility
− All segments completed the move into the new facility
• Feb 2016 – Completion of Share consolidation exercise− Consolidation of every four (4) ordinary shares in the capital of the Company into one (1)
Consolidated Share
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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Recent Developments• Jun 2015 – ZPA awarded with prestigious ABB Value Provider Certification
− Certification recognises ZPA’s technical capabilities and management’s commitment to support ABBworldwide outside of Finland
− Certification authorizes ZPA to market ABB products, build and assemble ABB liquid and air‐cooledVariable Frequency Drives (“VFD”) outside of Finland
• Jun 2015 – XMH secures new contracts worth over S$23.1 million− MPG secured two contracts in different industries, one for a data centre and the other for a
healthcare centre totalling S$15.5 million. ZPA secured a total of six consecutive contract wins in therecent month totalling S$7.6 million
− New orders shows customer confidence in Group’s in‐house products and effectiveness of Group’sbusinesses in penetrating international markets, providing flow of activities and revenue through2015 to March 2017
• Mar 2015 – Completion of ZPA acquisition− A profitable entity and immediately earnings accretive, ZPA promotes business growth leveraging on
ZPA’s sales network and existing customer base− Gradually implement ZPA’s technical knowledge and capabilities into XMH− Complementary suite of services that create synergy with original business
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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Bloomberg codeReuters code
XMH SP EQUITYXMHL.SI
Share Price S$0.300
Market Capitalization(111.3M shares)
S$33.4 million
Trailing P/E 22.6x+
NAV per share S$0.592
Free Float 26.3%
Substantial Shareholders Insiders 46.2%
Credence Capital 18.8%
Source: Company Statements, Bloomberg as at 29 August 2017+: Using adjusted EPS which excludes one-time non-cash impairment of S$2.6 million in 4QFY2017 in relation to intangible assets
Share Statistics
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THANK YOU
Investor Relations | Financial PR Pte Ltd | Romil SINGH | Jonathan YEOHT: +65 6438 2990 F: +65 6438 0064 | [email protected]