private & confidential © 2014 xmh holdings ltd · financial summary weak market sentiments and...

PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD

9MFY2018

Results Presentation


Disclaimer

The 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.

2


Presentation Outline

Financial Highlights

Outlook, Strategies and Recent Developments

3

Financial HighlightsFinancial Highlights


*: Includes distribution expenses and administrative expensespp: Percentage points#: Based on weighted average number of shares of 111,281,821 for 3QFY2018 and 9MFY2018 (3QFY2017 and 9MFY2017: 111,281,821). NM: not meaningful

Financial SummaryWeak market sentiments and strong competition continued to weigh down performance but the

Group is starting to see signs of recovery as oil and coal prices stabilise

5

Financial Highlights3QFY2018 3QFY2017 % 9MFY2018 9MFY2017 %

S$’000 S$’000 Change S$’000 S$’000 Change

Revenue 14,051 19,533 (28.1) 54,995 64,042 (14.1)

Gross Profit 4,194 4,715 (11.0) 14,772 13,879 6.4

Gross Profit Margin 29.8% 24.1% 5.7 pp 26.9% 21.7% 5.2 pp

EBITDA 245 2,739 (91.1) 4,301 6,691 (35.7)

Other Income 1,414 1,508 (6.2) 2,456 3,491 (29.6)

Operating Expenses* 6,018 6,882 (12.6) 17,656 18,884 (6.5)

Net (Loss)/Profit

Attributable to Owners of

the Company

(1,223) 766 NM (890) 1,058 NM

Net Profit Margin - 3.9% NM - 1.7% NM

Basic EPS (cents)# (1.10) 0.69 NM (0.80) 0.95 NM


Revenue

97.6 105.2 91.5

108.4

19.4 18.9

25.1 22.0

19.514.1

26.1

-

30.0

60.0

90.0

120.0

Revenue S$’ million

Quarterly Analysis

1Q

2Q

3Q

4Q

9MFY2017S$64.0m

9MFY2018S$55.0m

Decrease in Revenue

� Distribution and

Project business

segments affected by

judicious spending by

customers and slow

market recovery

6


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 5.6

4.7 4.2

7.9

23.5%

26.0%

30.1%

24.8%

21.7%*

26.9%**

0.0%

10.0%

20.0%

30.0%

40.0%

-

10.0

20.0

30.0

40.0

1Q

Quarterly Analysis

9MFY2017S$13.9m

9MFY2018S$14.8m

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

7

2Q

3Q

4Q

*9MFY2017 GPM **9MFY2018 GPM


11.4

6.1 5.3 7.9

0.2 0.1

0.1 0.2

0.8

-1.2

0.5^

11.7%

5.8% 5.7%7.3%

0.7%*

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

(5.0)

-

5.0

10.0

15.0

20.0

Profitability Trend (Net Profit / Net Profit Margin)

Net Profit S$’ million

Quarterly Analysis

Net Profit Margin

1Q

9MFY2017S$1.1m

9MFY2018S$(0.9)m

Net Profit and NPM

� Reduced finance

income and other

income, despite

reduced operating

expenses resulted in

Net profit and NPM

going into the red

8

2Q

3Q

4Q

^Excluding one-time non-cash impairment of S$2.6 million in relation to intangible assets in 4QFY2017*9MFY2017 NPM

1Q

2Q

3Q


13.9

8.9 9.3

13.4

2.1 1.9

1.9 2.2

2.70.2

2.0

14.2%

8.5%10.1%

12.4%10.4%*

7.8%**

-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

4Q

Profitability Trend (EBITDA / EBITDA Margin)

EBITDAS$’ million EBITDA Margin

1Q

9MFY2017S$6.7m

9MFY2018S$4.3m

Lower EBITDA and

EBITDA Margin

� Lower EBITDA and

EBITDA Margin due to

lower net finance

income, despite lower

operating expenses

9

2Q

3Q

Quarterly Analysis

*9MFY2017 EBITDA Margin **9MFY2018 EBITDA Margin


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)

DividendSingapore Cents Dividend Yield

10

4-to-1 share consolidation on Feb 22, 2016


Balance Sheet31 January 2018

S$’000

30 April 2017

S$’000

Property, plant and equipment 65,349 68,707

Intangible assets 11,315 11,833

Inventories 26,901 30,550

Trade and other receivables 13,536 23,068

Contract work-in-progress 10,349 10,980

Cash and short-term fixed deposits 26,423 25,618

Loans and borrowings 73,938 74,049

Total equity attributable to owners of the company 64,302 66,380

Net gearing ratio 0.74 0.73

Net asset value per ordinary share (S$’ cents)# 57.78 59.65

Balance Sheet

#: Based on 111,281,821 number of shares

11

Outlook & StrategiesOutlook, Strategies& Developments


Outlook

13

• Intense competition persists but stabilisation of oil and coal prices underpin a slow recovery in upstream projects

• Increase in enquires but pick up in sales is expected to be gradual

Cautiously optimistic that a slow recovery in the offshore marine and coal industries may be underway

• Near term outlook remains challenging

• Group will continue to hone the integration of its service offerings and use its combined technical knowledge to cater comprehensive power generating solutions to both marine and industrial sectors

• Group continues to seek viable opportunities in new markets which includes but is not limited to Myanmar

Taking a prudent and methodical to new prospects


Growth Strategies

Exploring New Revenue Streams and Revitalising Existing Relations

Securing new customers in emerging markets

Strengthen relationships with existing clients

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 cost management

• Maintain stricter cost control measures

• Actively exploring potential new markets• Leverage on expertise as a total solutions

provider for marine and industrial power generating needs

• Capitalize on enlarged client base• Stay connected with existing clients• Reconnecting with past clients as sentiments

improve

14


Recent Developments• Feb 2018 – Striking Off of Wholly-Owned Subsidiary, AceGen Pte. Ltd.

• Feb 2018 – Sale and Purchase of Shares Agreement Relating to Disposal ofShares in Z-Power Automation Vietnam Co. Ltd.

− Proposed disposal of 50% of the issued and paid-up share capital of Z-power Automation Vietnam

Co. Ltd to IPE Automation Sdn. Bhd, which owns the other 50% of Z-power Vietnam

• Feb 2018 – Joint Venture Entity in Myanmar incorporated

− With effect from 31 January 2018, issued and paid-up capital of US$ 150,000

− (1) XMH Engineering (50%), (2) Myanmar MarcoPolo Co., Ltd. (25%), (3) Bulox Power Pte. Ltd. (25%)

• Aug 2017 – Entered into joint venture through XMH Engineering Pte. Ltd. withMyanmar Marcopolo Co., Ltd and Bulox Power Pte. Ltd.

− Manufacture and/or assemble transformers, generator sets and power solution products and to

provide after sales and maintenance services relating to transformers, generator sets or power

solution related activities in Myanmar

• 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

15


Bloomberg code

Reuters code

XMH SP EQUITYXMHL.SI

Share Price S$0.250

Market Capitalization(111.3M shares)

S$27.8 million

Trailing P/E -

NAV per share S$0.578

Free Float 26.4%

Substantial Shareholders Insiders 47.0%

Credence Capital 18.8%

Source: Company Statements, Bloomberg as at 5 March 2018

Share Statistics

16

THANK YOU

Investor Relations | Financial PR Pte Ltd | Romil SINGH | Jonathan YEOHT: +65 6438 2990 F: +65 6438 0064 | [email protected]

private & confidential © 2014 xmh holdings ltd · financial summary weak market sentiments and...

Documents