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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
1HFY2018Results 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 2QFY2018 and 1HFY2018 (2QFY2017and 1HFY2017: 111,281,821). NM: not meaningful
Financial SummaryGroup was profitable for the half and gross margins improved but weak market sentiments and
strong competition continued to weigh down performance
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Financial Highlights2QFY2018 2QFY2017 % 1HFY2018 1HFY2017 %
S$’000 S$’000 Change S$’000 S$’000 Change
Revenue 22,056 25,083 (12.1) 40,944 44,509 (8.0)
Gross Profit 5,572 5,299 5.2 10,578 9,164 15.4
Gross Profit Margin 25.3% 21.1% 4.2 pp 25.8% 20.6% 5.2 pp
EBITDA 2,120 1,881 12.7 4,056 3,952 2.6
Other Income 551 1,553 (64.5) 1,042 1,983 (47.5)
Operating Expenses* 6,399 6,937 (7.8) 11,638 12,202 (4.6)Net Profit Attributable toOwners of the Company
227 101 NM 333 292 14.0
Net Profit Margin 1.0% 0.4% 0.6 pp 0.8% 0.7% 0.1 pp
Basic EPS (cents)# 0.20 0.09 NM 0.30 0.26 15.4
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Revenue
97.6 105.2 91.5
108.4
19.4 18.9
25.1 22.0
19.5
26.1
‐
30.0
60.0
90.0
120.0
Revenue S$’ million Quarterly Analysis
1Q
2Q
3Q
4Q
1HFY2017S$44.5m
1HFY2018S$40.9m
Decrease in Revenue
Distribution and
projects business
segments affected by
competition, judicious
spending by customers
and deferment of
projects
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PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Profitability Trend (Gross Profit / Gross Profit Margin)Gross Profit S$’ million
Gross Profit Margin
22.9 27.3 27.6 26.9
3.9 5.0 5.3 5.64.7
7.9
23.5%26.0%
30.1%
24.8%
20.6%*
25.8%**
0.0%
10.0%
20.0%
30.0%
40.0%
‐
10.0
20.0
30.0
40.0
1Q
Quarterly Analysis
1HFY2017S$9.2m
1HFY2018S$10.6m
Increase in Gross Profit
and GPM
Despite revenue
decrease, GP and GPM
improved as a result of
better margins achieved
from sales and
completion of some
projects
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2Q
3Q
4Q
*1HFY2017 GPM **1HFY2018 GPM
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
11.4
6.1 5.3 7.9
0.2 0.1 0.1 0.2 0.80.5^
11.7%
5.8% 5.7%7.3%
0.7%* 0.8%*
‐15.0%
‐5.0%
5.0%
15.0%
25.0%
‐
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Profitability Trend (Net Profit / Net Profit Margin)Net Profit S$’ million
Quarterly Analysis
Net Profit Margin
1Q
1HFY2017S$0.3m
1HFY2018S$0.3m
Higher Net Profit and NPM
Net profit and NPM
improved marginally
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2Q
3Q
4Q
^Excluding one‐time non‐cash impairment of S$2.6 million in relation to intangible assets in 4QFY2017*1HFY2017 NPM **1HFY2018 NPM
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
13.9
8.9 9.3 13.4
2.1 1.9
1.9 2.2
2.7
2.0
14.2%
8.5%10.1%
12.4%
8.9%* 9.9%**
‐15.0%
‐5.0%
5.0%
15.0%
25.0%
‐
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
4Q
Profitability Trend (EBITDA / EBITDA Margin)EBITDA
S$’ million EBITDA Margin
1Q
1HFY2017S$4.0m
1HFY2018S$4.1m
Higher EBITDA and
EBITDA Margin
Higher EBITDA from
better gross profits and
lower other operating
expenses
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2Q
3Q
Quarterly Analysis
*1HFY2017 EBITDA Margin **1HFY2018 EBITDA Margin
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
1.0 1.0 0.8
2.0
0.5
0.2 0.2
3.6% 3.1% 3.6%5.0%
1.6%
‐5.0%
0.0%
5.0%
10.0%
‐
0.5
1.0
1.5
2.0
2.5
3.0
Dividend Special Dividends Dividend Yield
Dividend Trend (Dividends / Dividend Yield)Dividend
Singapore Cents Dividend Yield
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4‐to‐1 share consolidation on Feb 22, 2016
PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD
Balance Sheet 31 October 2017S$’000
30 April 2017S$’000
Property, plant and equipment 66,357 68,707
Intangible assets 11,409 11,833
Inventories 27,565 30,550
Trade and other receivables 17,844 23,068
Contract work‐in‐progress 10,993 10,980
Cash and short‐term fixed deposits 26,292 25,618
Loans and borrowings 72,425 74,049
Total equity attributable to owners of the company 65,109 66,380
Net gearing ratio 0.71 0.73
Net asset value per ordinary share (S$’ cents)# 58.51 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
Effects of increased oil and coal prices yet to flow downstream and tug boat charter rates remain lacklustre
• Group will build on its established presence and ability to provide holistic solutions in the marine and industrial sectors
• Group continues to seek 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
• Work closely with identified partners
• Improve upon existing operational & accounting practices
• Keep lean operating structure & prudent management
• Maintain 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
Bloomberg codeReuters code
XMH SP EQUITYXMHL.SI
Share Price S$0.240
Market Capitalization(111.3M shares)
S$26.7 million
Trailing P/E 16.7x+
NAV per share S$0.585
Free Float 26.3%
Substantial Shareholders Insiders 46.2%
Credence Capital 18.8%
Source: Company Statements, Bloomberg as at 8 December 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]