Ann Joo Resources Bhd. · MYX:ANNJOO
Ann Joo Resources Bhd — Shareholder Meeting (June 2024)
21 slides from Ann Joo Resources Bhd's shareholder meeting presentation, Jun 25, 2024
Slide 1: 28th Annual General Meeting
28th ANNUAL GENERAL MEETING Presents by: Dato’ Lim Hong Thye, Group Managing Director 25 June 2024
Slide 2: Part 01: 2023 Review
Part 01 2023 Review 2
Slide 3: Group Performance Highlights (2023 vs 2022)
GROUP PERFORMANCE HIGHLIGHTS (2023 VS 2022) PERFORMANCE RECOVERY HINDERED BY LOOMING DEMAND-SUPPLY IMBALANCES AND HIKE IN ELECTRICITY TARIFF & INTEREST RATE REVENUE LOSS AFTER TAX NET ASSETS NET GEARING RM2,508M (RM7.12M) RM1,199M 1.12X LAT Margin: -0.28% (2022: RM1,193M) (2022: RM3,035M) (2022: 0.9
Slide 4: Group Performance Highlights (2023 vs 2022)
GROUP PERFORMANCE HIGHLIGHTS (2023 VS 2022) REVENUE (RM’Mil) PRE-TAX PROFIT/(LOSS) (RM’Mil) 72 1,556 1,479 1,264 1,244 (19) (44) (275) 1H2023 1H2022 2H2023 2H2022 1H2023 1H2022 2H2023 2H2022 RM’Million 1H2023 1H2022 2H2023 2H2022 Revenue 1,264 1,479 1,244 1,556 Pre-Tax Profit/(Loss) (44) 72 (19) (27
Slide 5: International Steel Prices vs Domestic Steel Price
INTERNATIONAL STEEL PRICES VS DOMESTIC STEEL PRICE 2023 : SLOW PACE OF PRICE RECOVERY AMIDST DOMESTIC & REGIONAL DEMAND-SUPPLY IMBALANCES 2022 : SUBDUED STEEL PRICES DUE TO CHINA’S WEAK STEEL DEMAND ON ZERO-COVID POLICY & PROPERTY DEBT CRISIS MALAYSIA vs INTERNATIONAL STEEL PRICE (RM/MT) RM/MT Malay
Slide 6: Key Raw Material Prices – Iron Ore & Scrap
KEY RAW MATERIAL PRICES – IRON ORE & SCRAP IRON ORE PRICE HIKE ON SCRAP PRICES MAINLY INFLUENCED BY EXCESS STEEL OUTPUT IN CHINA WEAK REGIONAL DEMAND Iron Ore Price (2022-2023) Scrap Price (2022-2023) As at USD/MT Scrap HMS, East Asia Import CFR $/t As at USD/MT IODEX 62% Fe / North China import CFR
Slide 7: Coking Coal & Coke Price Trends
COKING COAL & COKE PRICE TRENDS GRADUAL RECOVERY PACE WITH ABNORMAL DISPARITY IN COAL & COKE PRICES 2022-2023 Premium Hard Coking Coal (PHCC) & Met Coke Price USD/MT PHCC FOB Australia Price PHCC CFR China Price 750 Met Coke Price CSR 64/62 FOB North China Met Coke Price CSR 64/62 CFR India 2022 650
Slide 8: Coking Coal & Coke Price Trends
COKING COAL & COKE PRICE TRENDS 2021-2023 COAL & COKE PRICE DISPARITY SIGNIFICANTLY IMPACTED COST STRUCTURE 2019-2023 Premium Hard Coking Coal (PHCC) & Met Coke Price USD/MT PHCC FOB Australia Price PHCC CFR China Price Met Coke Price CSR 64/62 FOB North China Met Coke Price CSR 64/62 CFR India 700
Slide 9: 2023 Market Review & Challenges
2023 MARKET REVIEW & CHALLENGES STEEL MARKET BATTLES STRONG EXTERNAL HEADWINDS & CHALLENGES Subdued Lackluster infra & ➢ Muted rollout of mega infrastructure projects construction activities ➢ Lack of catalyst to boost steel demand Domestic Landscape Mounting cost ➢ >40% electricity tariff hike pres
Slide 10: Review of 2023 Strategic Initiatives
REVIEW OF 2023 STRATEGIC INITIATIVES Financial Performance Balance Sheet & Cash Corporate Development & Flow Management Expansion Plans ❑ Lower Revenue due to lower ❑ Net working capital Upstream Steel Division tonnage sold and selling requirements ❑ Acquisition of PCSB for prices amid adverse marke
Slide 11: Part 02: Financial Performance
Part 02 Financial Performance 11
Slide 12: Revenue & Profitability 2023
REVENUE & PROFITABILITY 2023 RECORD REVENUE ATTRIBUTABLE TO HIGHER SALES TONNAGE ERODED MARGIN ON ADVERSE TIME LAG EFFECTS OF HIGH MATERIAL & FUEL COSTS REVENUE (RM’Mil) PROFITABILITY (RM’Mil) PBT/(LBT) PAT/(LAT) 2023 2,508 (63) 2023 (7) 2022 3,035 (203) 2022 (133) 2021 2,396 256 2021 243 (74) 2020
Slide 13: Long-Term Financial Performance
LONG-TERM FINANCIAL PERFORMANCE ANN JOO GROUP PROFIT AFTER TAX (RM’Mil) 2021 Ann Joo’s Record Profit 2007 2016 Privatisation of AJSB China steel sector reform 2021 China market 243 2006 boosted by AJSB (Malayawata) became 198 205 pump priming 2023 subsidiary of AJR 167 149 150 Acquisition 127 of PCS
Slide 14: Key Current Assets & Liabilities Position
KEY CURRENT ASSETS & LIABILITIES POSITION Key Current Assets & Liabilities Position (RM’mil) Inventories Net Receivables* Net Borrowings (Trade lines) Net Gearing Ratio 1,393 1337 1,235 1215 1,129 344 1,096 1.21 971 1,002 957 324 245 257 857 269 0.92 0.81 0.78 0.72 1,337 1049 1,096 872 971 857 957 9
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS RM’000 2023 2022 Y-o-Y % 1Q24 INCOME Revenue 2,508 3,035 ↓ 17.4% 648.1 STATEMENT EBITDA 54.2 (111.5) ↑ 148.6% 3.2 Net Loss (7.1) (133.1) ↑ 94.7% (15.9) Basic EPS (sen) (0.39) (23.75) ↑ 98.4% (2.66) Dividend (sen) - - - - FINANCIAL Inventory 970.3 911.3 ↑ 6.5% 968.0 POSITION Trad
Slide 16: Part 03: Industry Outlook & Strategic Direction
Part 03 Industry Outlook & Strategic Direction 16
Slide 17: Market Outlook & Prospect
MARKET OUTLOOK & PROSPECT GLOBAL MARKET - MODEST GROWTH MOMENTUM ▪ Rising geo-political tensions & US-China trade frictions (Impact of US Steel Tariff rate from 7.5% to 25% on import of steel products from China) ▪ Increasing pressure for decarbonization efforts that will influence steel and fuel pr
Slide 18: International Steel Prices vs Domestic Steel Price
INTERNATIONAL STEEL PRICES VS DOMESTIC STEEL PRICE RESILIENT DOMESTIC STEEL PRICE DESPITE VOLATILE PRICE TREND IN CHINA MALAYSIA vs INTERNATIONAL STEEL PRICE (RM/MT) RM/MT Malaysia Bar Price China Domestic Shanghai Rebar HRB400 2023 2024 1Q2023 : steel price surge on China’s reopening 1Q2024 : China
Slide 19: Steel Price vs Material & Fuel Price (Latest vs 2023)
STEEL PRICE VS MATERIAL & FUEL PRICE (LATEST VS 2023) RESILIENT DOMESTIC STEEL PRICE VS LOWER MATERIAL & FUEL COSTS LATEST MARKET STEEL BAR IRON ORE SCRAP COKING COAL PRICE RM2,760/MT USD105/MT USD386/MT USD239/MT VS (2023: RM2,753/mt) (2023: USD119/mt) (2023: USD396/mt) (2023: USD296/mt) 2023 YEARL
Slide 20: Strategic Direction
STRATEGIC DIRECTION UPSTREAM STEEL DIVISION ❑ Coke Cost Reduction: With the commencement of 3 huge Coke production plants in Sulawesi in 2024, expecting substantial reduction in Coke price. ❑ Expansion of Engineering Grade Wire Rod Production via a newly acquired subsidiary, PCSB. DOWNSTREAM STEEL D
Slide 21: Thank You
THANK YOU KEY STEEL INDUSTRY WEBSITES INCLUDE: 1. miti.gov.my 2. steelbb.com 3. mysteel.net 4. seaisi.org 5. worldsteel.org