QUARTERLY IR UPDATES4th Quarter 2018 Financial Results & Updates

13th February 2019

Disclaimer

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This Presentation is not intended to form the basis of any investment decision with respect to Malaysia Marine andHeavy Engineering Holdings Berhad (MHB). Neither this presentation nor anything contained herein shall form the basisof, or be relied upon in connection with, any contract or commitment whatsoever. No representation or warranty, expressor implied, is or will be made by MHB in relation to, and no responsibility or liability is or will be accepted by MHB as tothe accuracy and completeness of, the Information made available, and any liability therefore is expressly disclaimed.

This Presentation may contain “forward-looking statements”. Forward-looking statements by their nature involve knownand unknown risks, uncertainties and other factors that are in many cases beyond MHB’s control. Although MHBbelieves that the expectations of its management as reflected by such forward-looking statements are reasonable basedon information currently available to it, no assurances can be given that such expectations will prove to have beencorrect. Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. In any event,these statements speak only as of their dates, and MHB undertakes no obligation to update or revise any of them,whether as a result of new information, future events or otherwise.

This Presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized,disclosed referred or passed on to others at any time without the prior written consent of MHB. Except for the yardfacilities in the photographs, none of the vessels/structures belong to MHB.

Contents

• Business Highlights

• Projects

• Financials

• Shareholding Information

• Key Focus Areas

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Key Highlights

FINANCIALS

• Revenue of RM974.3 mil

• Pre-tax loss of RM124.1 mil

Heavy Engineering Unit (HEU) milestones:

• Completion of centralised piping fabrication for RAPID

Package 5

• Sail-away of five units of Dangote CALM Buoy

• Sail-away of Sepat-A jacket and topside

• Completion of piping and steel structure installation work

for RAPID Refinery of Gas (RoG) area

Marine Business Unit (MBU) milestones:

• Sail-away of FSO Benchamas 2

• Sail-away of FSO Bergading

• Completed repair & maintenance of 93 vessels

• Secured 105 new jobs

Contents

• Business Highlights

• Projects

• Financials

• Shareholding Information

• Key Focus Areas

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Completed in January 2018

RAPID Package 5 - Centralised Piping Fabrication (CPF)

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Sailed away in March 2018

Dangote CALM Buoy

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Sailed away in April 2018

Sepat-A WHP Topside & Substructure

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Completed in December 2018

RAPID Package 5 – Refinery of Gas (ROG)

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Sailed away on 9th April 2018

FSO Benchamas 2

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Sailed away on 28th June 2018

FSO Bergading

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Progress at 36.7% as at December 2018

Bokor Phase 3 Re-Development CPP

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Progress at 93.1% as at December 2018

Gumusut Kakap Phase II Extension Subsea Manifold

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Progress at 99.7% as at December 2018

RAPID Package 3 Area 2

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Progress at 91.3% as at December 2018

RAPID Package 14

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Newly Secured

Pluto Water Handling Module

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Newly Secured

Tembikai NAG Offshore Wellhead Facilities

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Notable Marine Repair Projects delivered in 2H 2018 (1/3)

Vessel owner: Eaglestar Marine Holdings (L) Pte. Ltd

Deadweight: 76,229 tonnage

Job scope: Dry docking and repair

Delivery date: 11 July 2018

LNG Carrier Puteri Mutiara Satu LNG Carrier Seri Alam

Vessel owner: Eaglestar Marine Holdings (L) Pte. LtdDeadweight: 83,482 tonnageJob scope: Dry docking and repairDelivery date: 22 July 2018

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Notable Marine Repair Projects delivered in 2H 2018 (2/3)

Vessel owner: MISC Bhd

Deadweight: 89,953 tonnage

Job scope: Dry docking and repair

Delivery date: 20 August 2018

LNG Carrier Seri Bijaksana LPG Carrier Astomos Venus

Vessel owner: Idemitsu Tanker Co., Ltd.Deadweight: 55,209 tonnageJob scope: Dry docking and repairDelivery date: 19 September 2018

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Notable Marine Repair Projects delivered in 2H 2018 (3/3)

Vessel owner: PT Gemilang Bina Lintas Tirta

Deadweight: 106,560 tonnage

Job scope: Afloat repair

Delivery date: 29 November 2018

Crude Oil Tanker Oceania LNG Carrier Hyundai Greenpia

Vessel owner: Hyundai LNG Shipping Co., Ltd.Deadweight: 71,684 tonnageJob scope: Dry docking and repairDelivery date: 13 December 2018

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Progress at 50.1% as at December 2018

Dry Dock 3 (DD3)

Contents

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• Business Highlights

• Projects

• Financials

• Shareholding Information

• Key Focus Areas

• Revenue

• HEU – Higher revenue mainly from commencement of

new order intake and from ongoing projects

• MBU – Decrease in revenue due to lower conversion

works and dry docking activities

• Operating

• HEU – Returned to profit contributed by the close-out of

completed projects

• MBU – Higher operating loss attributed to the decrease in revenue

• Pre-tax loss

• Higher loss from previous quarter following the decline in the Group’s revenue

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Financial Updates

Income Statement, Sequential QuarterIncome Statement (RM 'm) 4Q 2018 3Q 2018RevenueHeavy EngineeringMarine

273.2224.049.2

289.8178.4111.4

Operating LossHeavy EngineeringMarineOthers

(29.2)1.7

(33.0)2.1

(22.7)(3.7)

(15.9)(3.1)

Finance Cost (0.9) -

Share of Profit of JV 3.8 -

Pretax Loss (26.3) (22.7)

Taxation 0.5 (0.1)

Net Loss (25.8) (22.8)

LPS (1.6) sen (1.4) senNote : Due to rounding, numbers may not tally with the total

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Financial Updates

Income Statement, Year-on-YearIncome Statement (RM 'm) 12M 2018 12M 2017RevenueHeavy EngineeringMarine

974.4651.5322.9

956.4591.3365.1

Operating (Loss)/ ProfitHeavy EngineeringMarineOthers

(126.2)(39.0)(81.7)(5.5)

14.3(37.4)

52.6(0.9)

Finance Cost (0.9) -

Share of Profit/ (Loss)of JV 3.0 (3.2)

Pretax (Loss)/ Profit (124.1) 11.0

Taxation (0.1) 21.4

Net (Loss)/ Profit (124.2) 32.4

(LPS)/ EPS (7.7) sen 2.1 sen

Note : Segmental Revenue and Operating Profit is post inter-segment eliminations: Due to rounding, numbers may not tally with the total

• Revenue• HEU – Higher revenue recognised from ongoing projects

in hand• MBU – Lower revenue mainly due to lower revenue

recognised from conversion works

• Operating • HEU – Increase in operating loss attributed to close-out of

completed projects in the prior year• MBU – Recorded an operating loss mainly due to

insufficient contribution to absorb fixed overheads arising from lower LNG dry docking activities coupled with suppressed margins from other marine works

• Share of results of JVs• Reported a profit contributed by the close-out of claims by

a joint venture

• Pre-tax loss• Pre-tax loss due to lower MBU revenue and operating

losses incurred

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Financial Updates

Balance Sheet

• Total assets of RM3.2bil• Higher Non-Current Assets – PPE, mainly due to

investment in DD3

• Lower Receivables & Payables – Ongoing projects are still at early stages

• Lower Cash – Dividend payout and investment in DD3

• NTA per share of RM1.50

Note : Due to rounding, numbers may not tally with the total

Balance Sheet (RM 'm) Dec 2018 Dec 2017

Non-Current Assets 1,905.5 1,839.4

Inventories 5.6 2.4

Receivables 669.8 847.1

Cash 589.3 675.0

Others 20.5 20.9

Total Assets 3,190.8 3,384.7

Shareholders' Funds 2,407.1 2,576.4

Non-Controlling Interests (0.3) 1.2

Long Term Loan 48.4 -

Payables 735.6 807.1

Total Equity & Liabilities 3,190.8 3,384.7

NTA per share RM1.50 RM1.59

Marine Business UnitF12

Tembikai NAG

CPP Bokor

Sepat Phase 2A Besar A

Woodside PlutoOthers

December 2018RM826 mil

RAPID

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Financial Updates

Backlog & Order Intake

356652

182

1,145

1440

500

1,000

1,500

2,000

Dec14 Dec15 Dec16 Dec17 Dec18

1,575

1,023629

1,273

826

0

500

1,000

1,500

2,000

Dec14 Dec15 Dec16 Dec17 Dec18

New Order Intake

Backlog

MHB BacklogRM (‘000)

RM (‘000)

* New Order Intake excludes marine vessel business

Contents

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• Business Highlights

• Projects

• Financials

• Shareholding Information

• Key Focus Areas

Foreign Investors 2.50%

Other Malaysian Shareholders

10.18%

Lembaga Tabung Angkatan Tentera

2.25%

EPF 1.54%

PNB & PNB Unit Trust Funds 1.84%

Lembaga Tabung Haji 6.69%

Technip 8.50%

Corporate Updates

Shareholding Information

Foreign Investors 2.24%

Other Malaysian Shareholders

10.44%

Lembaga Tabung Angkatan Tentera

2.25%

EPF 1.63%

PNB & PNB Unit Trust Funds 1.84%

Urusharta Jamaah 6.60%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

28-Sep-18 28-Oct-18 28-Nov-18 28-Dec-18

As of30 Sep 2018

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As of31 Dec 2018

Share Price (RM)

20/12/2018

0.720.5004/10/2018

Technip 8.50%

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Contents

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• Business Highlights

• Projects

• Financials

• Shareholding Information

• Key Focus Areas

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Key Focus Areas

Tenders worth ~ RM5.5 billion have been submitted as of December 2018

Strategy & Initiatives

Continue pursuing existing business of Marine & Heavy Engineering, seizing available Floaters Conversionopportunities and expanding marine capacity through additional dry dock

• Work order for EPCIC of Offshore Wellhead Facilities for Tembikai Non-Associated Gas (TNAG)Field Gas Development for Vestigo Petroleum Sdn Bhd.

• Awarded frame agreement for EPC of fixed offshore structure works for PETRONAS oil and gasblocks within Malaysia which valid for 6 years

• Signed a Long Term Agreement (LTA) with Saudi Aramco for the provision of EPCIC work foroffshore facilities in Kingdom of Saudi Arabia which valid for 6 years with option of 6 years extension

Expanding into oil & gas services for onshore and offshore

Develop new business, namely construction & fabrication capabilities for modular structure and renewableenergy

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