Maste

el

MA

LA

YS

IA S

TE

EL

WO

RK

S (K

L) B

HD

Co

rpo

rate

Pre

se

nta

tion

F

Y13 R

esu

lts &

Co

rpo

rate

Up

date

Pre

se

nte

d b

y:

Da

to’ S

ri Ta

i He

an

Le

ng

, Ma

na

gin

g D

irec

tor / C

EO

3 A

pril 2

01

4

•FY13FinancialHighlights

•Industry

Highlights

•Growth

Stra

tegies

•Investm

entMerits

•Appendix

•Corporate

Profile

CONTENTS

2

Financial H

ighlights

Regaining M

omentum

3

687.26

1,004.79

1,253.37

1,312.19

1,375.44

0

30

0

60

0

90

0

1,2

00

1,5

00

FY2

00

9FY

20

10

FY2

01

1FY

20

12

FY

20

13

RM’m

ilGro

up R

evenue (R

M'm

il)

Revenue Tre

nd

Riding on the domestic

constru

ction boom…

4

4Q13 In

com

e S

tate

ment

5

4Q

13

4Q

12

Ch

an

ge

R

M'm

ilF

Y1

3F

Y1

2C

ha

ng

e

Re

ma

rks

35

2.0

31

5.2

11

.7%

Re

ve

nu

e

13

75

.41

31

2.2

4.8

%D

ue

to in

cre

as

ed

sa

les

vo

lum

e

de

sp

ite lo

we

r AS

Ps

16

.41

1.9

37

.6%

EB

ITD

A

69

.46

1.9

12

.1%

4.7

%3

.8%

0.9

pt

EB

ITD

A m

arg

in

5.0

%4

.7%

0.3

pt

5.8

2.9

10

2.0

%P

BT

3

0.7

24

.92

3.4

%

1.7

%0

.9%

0.7

pt

PB

T m

arg

in

2.2

%1

.9%

0.3

pt

5.4

2.7

97

.8%

PA

TM

I 2

8.8

24

.31

8.2

%

1.5

%0

.9%

0.7

pt

Ne

t ma

rgin

2

.1%

1.9

%0

.2 p

t

2.4

81

.29

92

.2%

Ba

sic EP

S (se

n)

13

.20

11

.51

14

.7%

Po

sitiv

e o

pe

ratin

g

lev

era

ge

from

hig

he

r ca

pa

city

utilis

atio

n

In lin

e w

ith a

bo

ve

Toplineboosted by stro

ng constru

ction ste

el demand domestic

ally…

79%

65%

83%

92%

21

%

35

%

17

%8

%

FY

201

0F

Y2

01

1F

Y2

01

2F

Y2

01

3

Re

ven

ue

Segm

entation

: Ge

ograph

ical Location

Ove

rsea

s

Loca

l

Revenue b

y G

eogra

phic

al L

ocatio

n

RM ‘m

ilFY2010

FY2011

FY2012

FY2013

Local

798.8

819.7

1,090.5

1,271.6

Overse

as

206.0

434.2

221.7

103.9

Tota

l1,0

04.8

1,2

53.9

1,3

12.2

1,3

75.4

Revenue S

egm

enta

tion

35%47%

38%29%

65%53%

62%71%

FY2010FY2011

FY2012FY2013

Revenue Segmentation: Products

BarsBillets

Revenue b

y P

roduct T

ype

RM ‘m

ilFY2010

FY2011

FY2012

FY2013

Bille

ts 354.0

592.4

505.4

397.5

Bars

650.8

661.0

806.8

977.9

Tota

l1,0

04.8

1,2

53.4

1,3

12.2

1,3

75.4

6

Buoyed by Malaysia’s ro

bust c

onstru

ction industry, a

lso leveraging on

presence in KlangValley…

Net gearing improved on stro

nger operating cash flo

w… even after

RM44 mil C

APEX for th

e year

Bala

nce S

heet (‘m

il)As a

t 31.1

2.2

013

As a

t 31.1

2.2

012

Property, P

lant &

Equipment

482.3

460.1

Curre

nt A

ssets

523.8

461.8

Curre

nt L

iabilitie

s434.6

368.6

Non-Curre

nt L

iabilitie

s25.2

35.4

Shareholders’ E

quity

555.1

525.9

Borro

wings (S

T+LT)

289.2

283.7

Cash & Cash Equivalents

60.4

54.7

Gearin

g (n

et o

f cash)

0.41x

0.44x

Bala

nce S

heet

7

Div

idend H

istory

2.2

4.4

4.9

2.1

2.8

2.1

3.3

2.2

7.3

%9

.9%

6.2

%1

0.0

%8

.6%

13

.4%

7.6

%

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Div

idend H

istory

Div

ide

nd

(RM

'mil)

Pa

yo

ut R

atio

(%)

2.1

3.0

2.5

1.0

1.4

1.0

1.5

1.0

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Div

ide

nd

Pe

r Sh

are

(sen

)

8

Has consiste

ntly paid dividends… even in loss m

aking year

Div

idends in

resp

ect o

f FY2013

�1st

interim

tax

exempt

dividend

of

0.5

sen

per

ordinary

share

(paid

on11thOcto

ber2013)

�2nd

interim

tax

exempt

dividend

of

0.5

sen

per

ordinary

share

(tobepaid

inMay2014)

Industry

Highlights

Powered by th

e Domestic M

arket

9

10

Local ste

el d

em

and u

nderp

inned b

y stro

ng a

ctiv

ity in

local

constru

ctio

n in

dustry

�Constru

ctio

n industry

expected to

secure RM115b worth

of

projects in

2014 (C

onstru

ction In

dustry

Development B

oard, 2

013)

Dem

and u

nderp

inned b

y in

frastru

ctu

ral a

ctiv

ities fro

m E

TP

�Exam

ple

s of o

ngoin

g k

eynote

mega-p

roje

cts:

KVMRT 1 Sungai B

uloh–Kajang

Klang Valle

y LRT extensio

ns

TunRazakExchange

PR1MA

�Increased fo

cus o

n affo

rdable housin

g development

Industry

Highlights

Demand for ste

el bars to

remain robust o

wing to stro

ng activity in the

domestic

constru

ction industry

…

Spread between ste

el bar and scrap metal prices re

main relatively

constant… minimal concerns over lo

wer se

lling prices

300

350

400

450

500

550

600

650

Ma

r 13

April 1

3M

ay 1

3June 1

3July

13

Aug 1

3S

ept 1

3O

ct 1

3N

ov 1

3D

ec 1

3Jan 1

4 F

eb 1

4M

ar 1

4

US

D/M

T

Mo

nth

Inte

rna

tion

al S

tee

l Pric

es

Mo

ve

me

nt C

ha

rt

Bille

tS

cra

pR

ebar

Sourc

e: C

RU

Ste

els

Growth Stra

tegies

Building on core competencies

12

Stra

tegic

Positio

nofFacto

ries

•Factorie

sin

Petalin

gJayaandKlang

•Excelle

ntgeographicalpositio

nto

beoneofthekeysupplie

rsof

steelbarsforallmegaprojectsin

theGreaterKlangValle

yRegion

•Examples:

KVMRT1,

LRT

extensio

ns,

LCCT

Term

inal,

PR1MA,

Gemas-J

Bdouble

trackingproject,

NPEextensio

n,andgrowth

ininfra

structure

andhousin

gdevelopmentsectors

Siz

eable

mark

etfo

rcore

pro

ducts

•Steelbarsconsumptio

nform

shighestcomponentoftotalapparent

steelconsumptio

nin

Malaysia

(2.49

millio

nMT,

approx.28%)

(Malaysia

nIro

n&

SteelIndustry

Federatio

n,2012)

13

Growth

Stra

tegies

Gro

wth

Stra

tegie

s

Building up capacity in our core ste

el business to

capture

increasing demand for ste

el bars…

Insta

lled

Capacity

(MT p

.a.)

2013

2014

2015

2016

Bille

t Pla

nt

650,0

00

700,0

00

700,0

00

700,0

00

Rollin

g M

ill400,0

00

450,0

00

550,0

00

650,0

00

•In

vestin

g R

M80 m

illion in

CAPEX in

FY14 to

incre

ase

steel b

ar c

apacity

to 5

50K M

T p

.a.

oNew c

apacitie

s will a

llow G

roup to

benefit fro

m e

conom

ies o

f scale

& m

eet

dom

estic

/regio

nal d

em

and fo

r steel b

illets &

bars

+50,000

+100,000

14

+100,000

Investm

ent M

erits

Standing tall in

the crowd

15

Remains an attra

ctive investm

ent case to the domestic

steel

market fo

r investors…

Core

busin

ess c

ontin

ues to

pro

vid

e

Gro

up’s b

ase

line g

rowth

; annual re

venues

have g

rown a

t a C

AGR o

f >20% o

ver th

e

past fe

w y

ears

Stro

ng c

om

petitiv

e e

dge o

f Gro

up’s m

ill due to

more

stable

inputs o

f scra

p m

eta

l and e

nerg

y (v

s peers’ m

ills that u

se iro

n

ore

, gas a

nd c

okin

g c

oal)

Benefits fro

m stra

tegic

Kla

ng V

alle

y

locatio

n

Dom

estic

industry

spurre

d b

y E

TP &

10MP

rollo

uts; c

onstru

ctio

n/in

frastru

ctu

re

work

s require

long ste

el

Long ste

el b

ar p

roductio

n se

cto

r not

impacte

d b

y a

ny C

hin

ese

steel su

rplu

s.

Regio

nal o

pportu

nitie

s ple

ntifu

l due to

constru

ctio

n a

nd in

frastru

ctu

re w

ork

s underta

ken b

y m

any A

sean

& A

sian

econom

ies

Curre

ntly

tradin

g a

t P/E

(ttm) o

f 7.7

x

Low P

/Book v

alu

e o

f 0.4

1x. B

ook v

alu

e

per sh

are

of R

M2.5

1 (F

Y13) v

s share

pric

e

of R

M1.0

1 (3

1/3

/14)

Expanded c

apacity

at B

ukit R

aja

meltsh

op

to 6

50,0

00 M

T fro

m 6

00,0

00 M

T in

2013

Build

ing n

ew 2

00,0

00 M

T ro

lling m

ill –re

ady b

y m

id-2

015; ta

kes to

tal c

apacity

to

650,0

00 M

T w

hen fu

lly o

pera

tional

Spare

capacity

to ta

p in

to m

ore

mark

ets

Investm

ent M

erits

BUSIN

ESS

VALUATIO

N

INDUSTRY

GROW

TH

16

An attra

ctive investm

ent case in the domestic

steel market… one

of th

e few profita

ble players

Investm

ent M

erits

17

Com

pany

Share

Pric

e

(31.3

.14)

Mark

et

Cap

(RM’ m

il)

Tra

iling

EPS

(sen)

Tra

iling

PE (X

)Tra

iling

PATMI

(RM ‘m

il)

Ann JooResources

1.12

560.7

2.45

45.7

12.3

#Lion In

dustrie

s0.61

437.7

(13.65)

-(97.9)

Maste

el

1.0

1220.3

13.2

07.7

28.8

#Southern Steel

1.50

629.1

9.67

15.5

40.6

Kinste

el

0.165

171.9

(19.70)

-(205.2)

# FYE 30 June

18

New R

ollin

g M

ill-Bukit R

aja

, Kla

ng

(constru

ctio

n p

rogre

ss as a

t 30

thJanuary

, 2014)

THANK Y

OU

http

://www.m

aste

el.c

om

.my

IR C

onta

cts

Tom

my S

imE: to

mm

ysim

@m

aste

el.c

om

.my

T: +

603-7

781 1

611 / 0

16-2

89 2

078

Tere

nce L

oo

E: te

rence@aquila

s.com

.my

T: +

603-2

711 1

391 / 0

12-6

29 5

618

19

Corporate Profile

20

Corp

ora

te In

form

atio

n

Liste

d sin

ce 2005…

Ma

lay

sia S

tee

l Wo

rks (K

L) Be

rha

d(M

AS

TE

EL)

Listed

Bu

rsa M

ala

ysia

Ma

in B

oa

rd (o

n 7

Fe

b 2

00

5)

Se

ctor

Ind

ustria

l Pro

du

cts

Sto

ck C

od

es

50

98

(Bu

rsa); M

SW

K.K

L (Re

ute

rs); MS

W:M

K (B

loo

mb

erg

)

Sh

are

Ca

pita

lR

M1

11

.0 m

il (22

2.0

mil sh

are

s of R

M0

.50

pa

r)

Ma

rket C

ap

italisa

tion

RM

22

0.3

mil (R

M1

.01

as a

t 31

stM

arch

20

14

)

MA

ST

EE

L Wa

rran

ts 20

10

/20

15

Wa

rran

t Co

de

sM

AS

TE

EL-W

A

No

. of W

arra

nts

10

5.4

mil a

t 11

Ma

y 2

01

2

Term

s of W

arra

nts

Exp

ires 2

6 O

ct 20

15

; Exe

rcise p

rice o

f RM

0.6

7 e

ach

Ma

rket C

ap

italisa

tion

RM

36

.4 m

il (RM

0.3

45

as a

t 31

stM

arch

20

14

)

21

�Esta

blish

ed

in1971,

Maste

elbegan

operatio

ns

inPetalin

gJayaproducingcommercialmild

steelround

bars

�Petalin

gJayarollin

gmill

isafully-contin

uousmill

with

reheatin

gfurnace;capacity

of400KMT/pa

�Bukit

Raja

meltsh

op,has

acapacity

of650K

MT/pa

�Today,

Maste

elis

oneofthetop5integratedste

el

mills

inMalaysia

�Maste

el’s

finish

ed

products

adhere

toSIRIM

(MS

146),

ISO

9001

and

Austra

liaCertific

atio

nAuthority

forReinforcingSteelsLtd

(ACRS)sta

ndards

�Maste

eldistrib

utesits

products

locally

(via

awide

netw

ork

of>60dealersnatio

nwide)anddire

ctexports

Ste

el

bille

ts

Ste

el b

ars

Backgro

und:

40-year tra

ck record in ste

el millin

g…

�MELT

SHOP AT B

UKIT

RAJA

�ROLLIN

G M

ILL A

T P

ETALIN

G J

AYA

SC

RA

P

ME

TA

L

EL

ET

RIC

AR

C

FU

RN

AC

E

CO

NT

INU

OU

S

CA

ST

ING

MA

CH

INE

BIL

LE

TS

RE

HE

AT

FU

RN

AC

ER

OL

LIN

GB

AR

DE

LIV

ER

YD

EL

IVE

RY

Capacity: 650,000MT pa

Capacity: 400,000MT pa

Integrated facilitie

s within the KlangValley…

Inte

gra

ted F

acilitie

s23

Core

Pro

ducts

Providing the building blocks fo

r the region’s g

rowth…

Ste

el B

illets

Ste

el B

ars

Siz

e100x 100 m

m,130 x 130 m

m, 1

20 x 120 m

m

Length

Standard 12 m

Cate

gory

Semi fin

ish product fo

r rollin

g m

ill

Gra

de

To custo

mer’s re

quire

ment

Siz

eB

ar d

iam

ete

r 10, 1

2, 1

6, 2

0, 2

2, 2

4, 2

5, 2

8 a

nd 3

2 m

m

Bar L

en

gth

Sta

ndard

12 m

Cate

go

ryC

onstru

ctio

n S

teel

Gra

de

500

Pro

du

ct S

pecific

atio

ns:

MS

146: 2

000 a

nd

BS

4449: 2

005

AS

NZ

4761

MAIN

USE

Ste

el b

illets a

re u

sed in

rollin

g m

ills to

pro

duce b

ars, w

ire ro

ds a

nd ste

el se

ctio

ns

MAIN

USE

Ste

el b

ars c

an b

e u

sed a

s a te

nsio

nin

g

devic

e in

rein

forc

ed c

oncre

te a

nd

rein

forc

ed m

aso

nry

structu

res h

old

ing th

e

concre

te in

com

pre

ssion

24