WELCOME TO SERBA DINAMIK HOLDINGS BERHAD S 1 ST ANNUAL GENERAL MEETING KUALA LUMPUR 26 MAY 2017 Presented by: DATO DR. IR. MOHD ABDUL KARIM ABDULLAH Group Managing Director, Group CEO & Non-independent Executive Director
2016 PERFORMANCE 2
Revenue (MYR million) 2,168 1,410 53.8% 1,409 756 86.5% 536 41.0% 2013 2014 2015 2016* 2016** Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 3
Profit Before Tax (MYR million) 268 160 67.5% 167 66 68 3.0% 135.3% 2013 2014 2015 2016* 2016** Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 4
Profit After Tax & Non-controlling Interests (MYR million) 246 157 56.7% 152 59 64 8.5% 145.3% 2013 2014 2015 2016* 2016** Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 5
Earnings per Share (MYR) & Return on Earnings (%) 3.5 33.0% 3.33 3 2.5 29.8% Return on Earnings 23.6% 2.52 30.1% 18.8% 2 1.5 1 0.5 0 0.95 1.03 Earnings per Share 0.14 ** 2013 2014 2015 2016* 2016 Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 6
MYR million Times Balance Sheet 900 800 700 600 500 400 300 200 100 0 0.76 0.78 198 151 271 211 12 22 476 1.00 473 76 817 809 640 640 0.78 43 43 2013 2014 2015 2016* 2016** S/holders' funds Borrowing Cash & cash equivalents Gross gearing ratio Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 0.78 1.20 1.00 0.80 0.60 0.40 0.20 0.00 7
Revenue Breakdown By Division (MYR million) By Division (%) 5 233 2.1% 8.6% 0.2% 0.2% 0.2% 8.91% 10.8% 10.8% 19.96% 12.04% 3 125 3 152 11 107 418 65 91 600 1,275 1,931 1,253 77.99% 79.37% 90.88% 89.0% 89.0% 2013 2014 2015 2016* 2016** 2013 2014 2015 2016* 2016** Operation & Maintenance (O&M) EPCC Others Operation & Maintenance (O&M) EPCC Others Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 8
Revenue Breakdown By Geographical Region (MYR million) By Country (%) 2016* 1114 949 766 663 610 570 390 347 240 167 105 124 103 84 0 0.62 3 3 31 1 Oman 2% Qatar 16% Saudi Arabia 13% UAE 10% Kuwait 3% Bahrain 8% UK 0.1% India 0.1% Malaysia 35% Indonesia 8% Turkmenistan 5% ** 2013 2014 2015 2016* 2016 Southeast Asia Central South Asia Middle East Europe Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 9
Status of Utilisation of IPO Proceeds Utilisation of Proceeds Estimated Timeframe for Utilisation from the Date of Our Listing Proposed Utilisation (RM 000) Percentage (%) Actual Utilisation (RM 000) (1) Actual Utilisation (%) Expansion of business & operational facilities Within 36 months 300,000 73.7 - - Working capital Within 36 months 29,300 7.2 20,000 68.3 Repayment of bank borrowings/ financing Within 12 months 60,000 14.7 60,000 100.00 Estimated listing expenses Within 6 months 17,800 4.4 14,018 78.8 Total 407,100 100.0 94,018 23.1 (1) As at 31 March 2017 10
Share Price Performance Stock Name/ Code SERBADK/ 5279 Market Main Market Sector Trading/ Services Share Price RM2.19 (as at 25 May 2017) Market Capital RM2.924 billion (as at 25 May 2017) Share Capital 1.335 billion 2017 High (RM) Low (RM) February 1.80 1.51 March 1.78 1.64 April 1.97 1.94 May (as at 25 May 2017) 2.22 2.18 52-Week 2.30 1.51 SERBADK: 42.11 FBMKLCI: 4.87 Outperform the FBMKLCI by 37.24%
2016 DIVISIONAL PERFORMANCE
Operation & Maintenance ( O&M ) Division MYR million 9 Service Centres: Malaysia Paka Labuan Miri Pasir Gudang Bintulu Bdr. Penawar Meru, Klang Overseas Bahrain UAE 2,500 2,000 1,500 1,000 500 - O&M Revenue Breakdown (MYR Million) 975 1,820 569 31 300 111 2014 2015 2016 IRM MRO 17.7% 1,931 17.3% 17.0% 1,275 1,253 16.2% 16.6% 600 418 334 74 97 212 212 2013 2014 2015 2016* 2016 ** Revenue Gross profit Gross profit margin 13
i. Maintenance, Repair & Overhaul (MRO) Revenue (MYR million) 409 569 975 1820 1227 2013 2014 2015 2016* MRO of rotating equipment: Motors Generators Pumps Compressors 2016** Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 14
ii. Inspection, Repair & Maintenance (IRM) IRM of static equipment & structures: Pressure vessels (fired/unfired) Heat exchangers Reactors Pipe racks Revenue (MYR million) 300 9 31 111 2013 2014 2015 2016* 26 2016** 15
Engineering, Procurement, Construction & Commissioning (EPCC) Division MYR million Plants Facilities Road infrastructure Buildings including: - Small hydropower plants - CNG plants - Microturbine generators - Steel structures - Piping 250 200 150 100 107 15.6% 10.7% 91 15.9% 125 233 16.7% 14.4% 152 50 17 10 20 39 22-2013 2014 2015 2016* 2016** Revenue Gross profit Gross profit margin 16
MYR million Other Supporting Services 70 60 50 65 17.4% 21.7% 19.2% 40 30 20 10-6.9% 5.6% 11 4.0 3 5 0.6 0.5 1.0 3 0.6 2013 2014 2015 2016* 2016** Revenue Gross profit Gross profit margin Technical training Provision of ICT solutions & services Supply of products and parts Provision of logistics services Note: * Serba Dinamik Group Berhad s consolidated accounts has been used for the purpose of comparison between current and past years ** s financial data from 25 May 2016 to 31 Dec 2016, as it effectively acquired the group on 25 May 2016 17
GOING FORWARD
Recent Contracts Secured Type Customer Location Tenure (Year) Provision of mechanical maintenance and project services Provision of maintenance services for weir gas compressors Provision of turbomachinery maintenance and engineering support services Provision of condition based monitoring Provision of manpower, workshop facilities and equipment for rotating equipment overhaul and repair work Shell MDS (M) Sdn. Bhd Petronas Carigali Sdn. Bhd Muhammed Jabar Trading & Contracting Petrofac (Malaysia PM304) Ltd Petronas Floating LNG1 (L) Ltd Contract Period Malaysia 4 4/1/2017 31/3/2021 Malaysia 2 1/6/2016 31/5/2018 Qatar 3 16/2/2017 15/2/2020 Malaysia 3 26/1/2017 31/3/2020 Malaysia 1 1/3/2017 28/2/2018 Total estimated contract value: RM468.95 million 19
Recent Corporate Developments 1 Memorandum of agreement with Nicol & Andrew Group PLC Exclusive Service Partnership for maintenance, repair and overhaul ( MRO ) and In-Situ or On Site services for the Malaysian oil & gas, petro chemical, oleo chemical, marine, plantation, energy, power production and distribution, water & waste water as well as general industries April 2017 2 Memorandum of understanding between EAG Capital Sdn Bhd with Serba Dinamik Group Berhad, & Malaysia-Bahrain Business Council & Bahrain-Malaysia Business Council ( MBCC/BMBC ) Source for & make connections with the respective government departments of the Kingdom of Bahrain for the Consortium to conduct a feasibility study for an integrated solid waste management & water desalination plant in Bahrain May 2017 20
Expansion Plans Operation Facilities Establish new facilities East Malaysia Johor New services (c. 100 acres) to capitalise on ample business opportunities in East Malaysia To support works under the RAPID project & future projects within Pengerang Integrated Petroleum Complex Operational facilities Upgrading current facilities Malaysia & UAE Upgrade existing service centres and invest & construct additional facilities in the logistics centre O&M of small hydropower plants Strengths in MRO & IRM Kota Marudu, Sabah Expand into operations of small hydro plants 21 year O&M contract for small hydropower plants with total capacity of 29.1 MW 21
Expansion Plans Business MRO service providers Complement or expand existing suite of products of geographical markets Business Investment acquisition Development of small utilities assets in Indonesia Small hydropower generation companies East Kalimantan Muaro Jambi Expanding asset ownership business model for recurring income Small gas power plants & water utilities Small gas power plant Adat Sanjung Sdn Bhd Konsortium Amanie JV Sdn Bhd 22
Expansion Plans Business (Asset Ownership) 30% equity ownership Adat Sanjung Sdn Bhd MYR218.0 million EPCC contract (hydropower plants at Kota Marudu, Sabah) 21 years O&M contracts (commence in 1Q18) Konsortium Amanie JV Sdn Bhd 40% Equity ownership MYR290.0 million EPCC contract (water treatment plant for Kuala Terengganu Utara Water Supply Scheme) 23
SUPPORTED BY POSITIVE INDUSTRY OUTLOOK
O&G Forecasted Global Demand Forecasted Investments Malaysia Outlook O&G Oil 2020 100 million barrels per day Gas 2020 3.8 trillion standard cubic metres Global spending on crude oil refineries 2015-2040 US$ 900 billion in cumulative investment US$ 36 billion annually to maintain & replace facilities & equipment of crude oil refineries globally PETRONAS committed spending 2016-2020 US$ 4 billion in cumulative investment 25
Power Generation & Water Forecasted Global Demand Forecasted Investments Malaysia Outlook Power Generation Total installed capacity 2020 6,577 Gigawatts 2016-2020 US$ 400 billion in average annual investment Generation Development Plan 2015-2025 19 power projects with combined installed capacity of 9.912 megawatts Water 2020 5,500 cubic kilometres Global water & waste water treatment market by chemicals & equipment 2022 US$ 138 billion Budget 2017 MYR 2,119 million focusing on water supply & treatment 26
OTHER HIGHLIGHTS 27
First Interim Single-tier Tax-exempt Dividend Q1FY17 2.2 Sen per Ordinary Share Total Pay-out RM29.4 Million equivalent 37.5% of Group s Profit After Tax 28
Key Investment Highlights Established international total energy engineering solutions provider Growing in low oil price environment Tapping on the M&A trend in O&G sector On the right track of growth initiatives 29
Thank you! On behalf of the board, Management and Staff of Serba Dinamik for serving on the Board of Serba and its subsidiaries since June 1993 30
CONTACT INFO: AGM Presentation is available on our website http://serbadinamik.com/agm.html For institutional investors: Investor Relation Tel: +603 5511 3213 serba.ir@serbadinamik.com