Mencast Holdings Ltd. · SGX:5NF
Mencast — Sector Connect - SGX 2013 Retail Seminars
38 slides from Mencast's conference presentation, Jul 18, 2013
Slide 1: Sector Connect - SGX 2013 Retail Seminars
Date : 18 July 2013 Event : Sector Connect - SGX 2013 Retail Seminars Topic : MRO to the Oil & Gas and Marine Industry Speaker : Glenndle Sim Executive Chairman and Chief Executive Officer Mencast Holdings Ltd
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute or form any part of an offer, invitation or recommendation to subscribe for, retain, or purchase any securities in Mencast Holdings Ltd. Information in this presentation, or anything contained in it, will not form the basis of any c
Slide 3: Contents
Contents • Group Overview • Operations Review • Financial Review - FY2012 and 1Q2013
Slide 4: Group Overview
PARTNER PERFECT
Slide 5: Introduction to Mencast
Introduction to Mencast • MRO (“Maintenance, Repair & Overhaul”) to Oil & Gas and Marine Industry • Established in 1981, with a reputation for reliability, quality and service built up over 30 years experience • First Company to list on SGX Catalist (June 2008) and first company to upgrade to SGX Ma
Slide 6: Brand Architecture
Brand Architecture Expert solutions, lasting relationships 6
Slide 7: Mencast Serves the Entire Energy Cycle
Mencast Serves the Entire Energy Cycle VL ENERGY CYCLE Exploration & Production Offshore structure engineering and fabrication for exploration, production and seismic survey Pressure vessels, tanks, skid plates and precision components Exploration Remediation Rig positioning and thruster installatio
Slide 8: Group Organizational Structure
Group Organizational Structure 8
Slide 9: Mencast's Shareholders
Mencast’s Shareholders Executive Directors Glenndle Sim Wong Boon Huat Profile Stake Profile Stake Executive Chairman & CEO 21.57% Executive Director 7.57% Cornerstone Investor Gay Chee Cheong and Family Profile Stake Renown private investor 9.10% Strategic Investors Heliconia Capital Management Dym
Slide 10: Board of Directors
Board of Directors Board of Directors Name Position Role & Responsibilities / Profile Highlights Glenndle Sim Executive Chairman & Chief Responsible for overall management, strategic planning, operations and marketing of Executive Officer Mencast Group. Graduated from NUS with Bachelor in Busine
Slide 11: Board of Directors – Majority Independent Board
Board of Directors – Majority Independent Board 11
Slide 12: Key Management
Key Management Key Management Name Position Role & Responsibilities / Profile Highlights Rodolfo “Jojo” Chief Financial Officer Responsible for accounting and finance functions of Mencast Group. Alviedo Jr Amassed 20 years of international audit and advisory experience across Singapore, Philippi
Slide 13: Key Management
PARTNER PERFECT From left to right: Brian Heng Teck Kin, Francis Ong Yong Chye, Cheng Shao Rong, Edwin Tan Eng Hoe, Lim Eng Sim, Sim Wei Wei, Jojo Alviedo, Jack Phua Poh Cheng, and Ho Gim Hai 13
Slide 14: Mission & Strategy
Mission & Strategy Most admired MRO Vision partner and employer in the world “BHAG Goals $1 Billion $50+ million Market Cap. Net Profit 2020” Big Hairy Audacious Goal Revenue Margins Strategy Organic High utilization Capital Spread Productivity and High ROCE & ROE M&A into adjacent processes Low WAC
Slide 15: Roadmap: One Billion Market Cap.
Roadmap: One Billion Market Cap. Mencast PARTNER PERFECT KEY DRIVERS Revenue Growth Strong demand for MRO from Singapore and new markets. US$2 billion revenue potential from identified markets. $50m + Margins - Subject to market conditions, the Group targets long term _ net margin of over 10% i Mark
Slide 16: Operating Locations
Operating Locations Built-Up Land Operating Locations Descriptions Area Area (sqm) (sqm) No. 7 Tuas View Circuit Sterngear equipment manufacturing 6,698 8,501 Singapore 637642 No. 12 Kwong Min Road Precision machining and energy operations 2,946 4,623 Singapore 628714 No. 39 Tuas Avenue 13 Sterngear
Slide 17: Operations Review
i ’ «a se ™ , @ yl a — =. PARTNER PERFEC
Slide 18: Integrated MRO Services
Integrated MRO Services Mencast Partner Perfect Marine Offshore & Engineering • Customized sterngear • Inspection, • Oil Sludge / Slop manufacturing maintenance & reclamation fabrication of offshore • Reclaiming and structures reconditioning of • Hydro cleaning oil & gas sterngear • Topside (rope ac
Slide 19: Key Customers
Key Customers Strong relationships with the customers have allowed Mencast to secure contracts averaging 3 to 5 years. Supporting Partners Across Offshore, Marine and Oil & Gas Sectors Marine Offshore & Engineering Energy Services 19
Slide 20: incl modification servi
incl modification servi pair, maintenance, et eering and fabric hagementworks ming anc ployment and man; shipyards, ports
Slide 21: Marine
Mencasb MARINE PARTNER PERFECT 21
Slide 22: Marine
MARINE PARTNER PERFECT 22
Slide 23: Marine
MARINE PARTNER PERFECT 23
Slide 24: Offshore & Engineering
OFFSHORE & ENGINEERING Principal Services = Inspection, maintenance and fabrication of offshore structures = Onshore structures-related services and engineering = In-house capabilities to manufacture metal precision components Services Capability = Fabricate complex skids, filtration membrane and pr
Slide 25: Offshore & Engineering
OFFSHORE & ENGINEERING Nw Mencasb PARTNER PERFECT 25
Slide 26: Offshore & Engineering
ALI OFFSHORE & ENGINEERING Mencasb PARTNER PERFECT
Slide 27: Offshore & Engineering
OFFSHORE & ENGINEERING PARTNER PERFECT
Slide 28: Slide 28
Slide 29: Energy Services
ENERGY SERVICES PARTNER PERFECT
Slide 30: Energy Services
ENERGY SERVICES SARTNERSEFIET
Slide 31: Energy Services
Amir ENERGY SERVICES Mencasb PARTNER PERFECT Wi 7 Mhlea ai el ran
Slide 32: Marine, Offshore & Engineering, Energy Services
Ylencasc MARINE Mlencasc OFFSHORE & ENGINEERING Mlencasb ENERGY SERVICES 32
Slide 33: Financial Review - FY2012 & 1Q2013
Financial Review - FY2012 & 1Q2013
Slide 34: Consistent Revenue Growth
Consistent Revenue Growth (Eight Consecutive Years of Growth) FY2005 – FY2012 CAGR Growth: 36.0% 84,086 56,358 32,031 25,063 26,274 18,876 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Marine Services Offshore & Engineering Services Energy 2,891 34,880 18,259 38,099 46,315 25,063 26,274 32,031 18,876 FY
Slide 35: Consistent Profit Growth
Consistent Profit Growth Gross Profit (S$’000) 8,663 11,285 12,439 16,037 22,543 26,492 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Net Profit (S$’000) 4,816 5,803 7,033 8,505 10,236 13,342 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 35
Slide 36: Evolution of Business Mix
Evolution of Business Mix • Marine has a lower materials component than Offshore and Engineering, and thus higher gross margins • Offshore and Engineering is still very lucrative and often has large contract values • Energy Services has potential to generate high margins REVENUE GROSS MARGIN 55% 41%
Slide 37: Revenue Growth Outlook 2013
Revenue Growth Outlook 2013 • Growth in all business segments (i.e. Offshore & Engineering, Marine and Energy), particularly Energy • Strong opportunities from Middle East, Batam, Thailand and Vietnam, each of which has revenue potential 2-3x Singapore • Targeting revenue to narrow gap relative to f
Slide 38: Thank You!
THANK YOU! MENCAST HOLDINGS LTD. 42E Penjuru Road, Mencast Central Singapore 609161 www.mencast.com.sg
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