private & confidential © 2014 xmh holdings ltd · the company with respect to the consolidated...

PRIVATE & CONFIDENTIAL © 2014 XMH HOLDINGS LTD

1QFY2018Results Presentation


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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Presentation Outline

Financial Highlights

Outlook, Strategies and Recent Developments

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Financial HighlightsFinancial Highlights


*: Includes distribution expenses and administrative expensespp: Percentage points#: Based on 111,281,821 weighted average number of shares for 1QFY2018 (1QFY2017: 111,281,821). NM: not meaningful

Financial SummaryGroup was profitable for the quarter and gross margins improved but weak market sentiments and

strong competition continued to weigh down performance

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Financial Highlights1QFY2018 1QFY2017 ChangeS$’000 S$’000 %

Revenue 18,888 19.426 (2.8)

Gross Profit 5,006 3,865 29.5

Gross Profit Margin 26.5% 19.9% 6.6 pp

EBITDA 1,936 2,071 (6.5)

Other Income 491 430 14.2

Operating Expenses* 5,239 5,265 (0.5)

Net Profit Attributable to Owners of the Company 106 191 (44.5)

Net Profit Margin 0.6% 1.0% (0.4) pp

Basic EPS (cents)# 0.10 0.17 (41.2)


Revenue

97.6 105.2 91.5

108.4

19.4 18.9

25.1

19.5

26.1

‐

30.0

60.0

90.0

120.0

Revenue S$’ million Quarterly Analysis

1Q

2Q

3Q

4Q

1QFY2017S$19.4m

1QFY2018S$18.9m

Decrease in Revenue

After‐sales and

distribution business

segments were

affected by weak

market sentiments

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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

4.7

7.9

23.5%26.0%

30.1%

24.8%

19.9%

26.5%

0.0%

10.0%

20.0%

30.0%

40.0%

‐

10.0

20.0

30.0

40.0

1Q

Quarterly Analysis

1QFY2017S$3.9m

1QFY2018S$5.0m

Increase in Gross Profit

and GPM

Despite revenue

decrease, GP and GPM

improved as a result of

better margins achieved

from sales and the

completion of certain

better margin projects

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2Q

3Q

4Q


11.4

6.1 5.3 7.9

0.2 0.1 0.1 0.80.5*

11.7%

5.8% 5.7%7.3%

1.0% 0.6%

‐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

1QFY2017S$0.2m

1QFY2018S$0.1m

Lower Net Profit and NPM

Tough conditions, lower

sales resulted in

decreased Net profit

and NPM

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2Q

3Q

4Q

*Excluding one‐time non‐cash impairment of S$2.6 million in relation to intangible assets in 4QFY2016


13.9

8.9 9.3 13.4

2.1 1.9

1.9 2.7

2.0

14.2%

8.5%10.1%

12.4%10.7% 10.2%

‐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

1QFY2017S$2.1m

1QFY2018S$1.9m

Lower EBITDA and

EBITDA Margin

Lower EBITDA due to

sales generated and

lower net foreign

exchange gain

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2Q

3Q

Quarterly Analysis


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


Balance Sheet 31 July 2017S$’000

30 April 2017S$’000

Property, plant and equipment 67,538 68,707

Intangible assets 11,624 11,833

Inventories 25,309 30,550

Trade and other receivables 15,128 23,068

Contract work‐in‐progress 13,868 10,980

Cash and short‐term fixed deposits 26,652 25,618

Loans and borrowings 72,078 74,049

Total equity attributable to owners of the company 65,848 66,380

Net gearing ratio 0.69 0.73

Net asset value per ordinary share (S$’ cents)# 59.17 59.65

Balance Sheet

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

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Outlook & StrategiesOutlook, Strategies& Developments


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

Underlying factors such as weak oil prices and lacklustre vessel charter rates have yet to improve

• Groundwork set for Group to build more presence in the marine and industrial sectors

• Group is also seeking viable opportunities in new markets which includes but is not limited to Myanmar

Actively pursuing viable opportunities


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

• Working closely with identified partners

• Improve upon existing operational & accounting practices

• Leaner operating structure & prudent management• 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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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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Recent Developments• Jun 2015 – ZPA awarded with prestigious ABB Value Provider Certification

− Certification recognises ZPA’s technical capabilities and management’s commitment to support ABBworldwide outside of Finland

− Certification authorizes ZPA to market ABB products, build and assemble ABB liquid and air‐cooledVariable Frequency Drives (“VFD”) outside of Finland

• Jun 2015 – XMH secures new contracts worth over S$23.1 million− MPG secured two contracts in different industries, one for a data centre and the other for a

healthcare centre totalling S$15.5 million. ZPA secured a total of six consecutive contract wins in therecent month totalling S$7.6 million

− New orders shows customer confidence in Group’s in‐house products and effectiveness of Group’sbusinesses in penetrating international markets, providing flow of activities and revenue through2015 to March 2017

• Mar 2015 – Completion of ZPA acquisition− A profitable entity and immediately earnings accretive, ZPA promotes business growth leveraging on

ZPA’s sales network and existing customer base− Gradually implement ZPA’s technical knowledge and capabilities into XMH− Complementary suite of services that create synergy with original business

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Bloomberg codeReuters code

XMH SP EQUITYXMHL.SI

Share Price S$0.300

Market Capitalization(111.3M shares)

S$33.4 million

Trailing P/E 22.6x+

NAV per share S$0.592

Free Float 26.3%

Substantial Shareholders Insiders 46.2%

Credence Capital 18.8%

Source: Company Statements, Bloomberg as at 29 August 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]

private & confidential © 2014 xmh holdings ltd · the company with respect to the consolidated...

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