MMC CORPORATION BERHAD 41 Annual General Meeting ( AGM … · 2017. 9. 19. · Page 1 of 11 MMC...
Transcript of MMC CORPORATION BERHAD 41 Annual General Meeting ( AGM … · 2017. 9. 19. · Page 1 of 11 MMC...
Page 1 of 11
MMC CORPORATION BERHAD
(Company No. 30245-H)
Minutes of the 41st Annual General Meeting (“AGM”) of MMC Corporation
Berhad (“MMC” or “the Company”) held at Mahkota II, Hotel Istana, 73,
Jalan Raja Chulan, 50200 Kuala Lumpur on Thursday, 11 May 2017 at
10.00 a.m.
DIRECTORS
PRESENT
Tan Sri Dato’ Seri Shamsul Azhar
Abbas
] Chairman & proxy
Dato’ Sri Che Khalib Mohamad Noh ] Group Managing
Director (“GMD”)
Tan Sri Dato’ Ir. (Dr.) Wan
Abdul Rahman Haji Wan Yaacob
] Directors
Dato’ Abdullah Mohd Yusof ]
Datuk Ooi Teik Huat ]
Dato’ Abdul Hamid Sh Mohamed ]
Dato’ Siti Halimah Ismail ]
Tuan Syed Naqiz Shahabuddin
Syed Abdul Jabbar
]
IN
ATTENDANCE
Encik Ahmad Aznan Nawawi
Puan Sazlin Ayesha Abdul Samat
]
Company
Secretaries
BY Encik Mohd Shahar Yope @ Yahya ] Representing
INVITATION Dr. Mabel Lee Khuan Eoi
Encik Badrulhisyam Fauzi
]
]
the Management
SHAREHOLDERS
PRESENT
490 shareholders representing
1,001,004 shares (0.03%) and 463
proxies representing 2,558,450,376
shares(84.02%).
QUORUM
Upon confirmation by the Company Secretary that a quorum was present,
the Chairman called the Meeting to order.
The Chairman extended a warm welcome to the shareholders who were
present at the AGM.
Before proceeding with the agenda of the AGM, the Chairman introduced
the Directors of the Company to the shareholders.
The Chairman then proceeded with the agenda of the Meeting.
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NOTICE CONVENING THE MEETING
The notice convening the Meeting dated 17 April 2017 and the
Auditors’ Report dated 31 March 2017 were taken as read.
Before proceeding with the resolutions, the Chairman informed the
shareholders that the voting at the 41st AGM would be conducted by way
of electronic polling in accordance with Paragraph 8.29A of the Main
Market Listing Requirements of Bursa Malaysia Securities Berhad.
The Chairman further informed that Symphony Share Registrars Sdn Bhd
had been appointed as the polling administrator and Symphony
Corporatehouse Sdn Bhd as the scrutineer. The polling process for the
resolutions would be conducted upon completion of the deliberation of
all resolutions tabled at the 41st AGM.
AGENDA 1
AUDITED FINANCIAL STATEMENTS AND DIRECTORS’ AND AUDITORS’ REPORT FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
The Chairman tabled the Audited Financial Statements and the
Directors’ and Auditors’ Reports to the Meeting and remarked that the
Company’s Financial Statements do not require shareholders’ approval
by virtue of Section 340 (1)(a) of the Companies Act, 2016 (“Act”).
The Act merely requires the Financial Statements to be laid before
the shareholders.
The Chairman then invited YBhg Dato’ Sri Che Khalib Mohamad Noh, the
Group Managing Director (GMD), to brief the shareholders on the
Company’s performance for the financial year ended 31 December 2016
and the outlook for the financial year 2017. (A copy of the
presentation is attached herewith as Appendix I to the Minutes).
The Chairman informed the shareholders that the Company had received
a letter dated 8 May 2017 from the Minority Shareholders Watchdog
Group (“MSWG”), enquiring on the financial performance of the Group
as well as matters relating to the resolutions.
For the benefit of shareholders present, the Chairman invited Encik
Ahmad Aznan Mohd Nawawi, the Company Secretary to read out the
questions raised by MSWG and MMC’s response therein (“Q&A”). (A copy
of the Q&A presentation is attached herewith as Appendix II to the
Minutes).
The Chairman then opened the floor for questions on the Audited
Financial Statements for the FY2016. In summary, the issues raised by
the shareholders/corporate representative/proxies were duly responded
by MMC Group as follows:
(1) Mr. Wan Eng Wah, a shareholder, enquired on the likely impact of
the transshipment business for ports in Peninsular Malaysia as a
result of the abolishment of cabotage between East Malaysia and
West Malaysia, as recently announced by the Prime Minister. The
GMD explained that only Northport has transshipment businesses
with East Malaysia. He added that the abolishment of cabotage
within the territory would only be effective in June 2017 and as
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such it is premature to determine the overall impact of the said
ruling at this juncture. Nonetheless, the GMD of the view that
the overall impact of the abolishment of cabotage will be
minimal to MMC Group.
Mr. Wan Eng Wah further enquired on the status of the action
taken by Malaysian Anti-Corruption Commission (“MACC”)
pertaining to the Criminal Breach of Trust (CBT) case against
the former CEO/MD of Kontena Nasional (“KN”). The GMD responded
that the case is still ongoing and Management is providing the
necessary assistance as required by MACC.
Mr. Wan Eng Wah then sought clarification on the total sale
proceeds from the sale of land by Senai Airport City Sdn Bhd.
The GMD informed that the profit made from the sale of land (one
off) is approximately RM28.4 million.
He further enquired whether the Line 1 KVMRT Project has been
completed within the stipulated timeline and budget. In
addition, he also enquired whether there is any incentive
provided by the Government for the successful completion of the
same. The GMD replied that the company has successfully
completed the project within the agreed timeline with cost
savings of approximately RM2.0 Billion from the initial project
estimation cost upon which, MMC has been furnished with the
Certificate of Completion (COC) by the Government. He added that
the MRT route from Kajang to Sungai Buloh is expected to
commence in mid of July 2017.
In relation to Line 2 KVMRT project, Mr. Wan Eng Wah inquired on
the status of the project and whether MMC is appointed as
project delivery partner (PDP) for the said Project. The GMD
informed that MMC had been appointed as PDP and the project is
progressing as planned. The Project is managed by a dedicated
team from the previous project.
(2) Ms. Lya Rahman enquired on the timing for the payment of
directors’ emoluments and benefits in kind for FYE 2017. The
Chairman replied that the Board would be paying emoluments and
benefit in kind for this year and sought approval from the
shareholders at next year’s AGM. Considering the circumstances,
Ms. Lya Rahman sought the Board’s consideration to seek the
shareholders’ approval prior to the payment of the directors’
emoluments and benefit in kind in the future.
Ms. Lya Rahman referred to the directors’ remuneration which is
still being categorised in a band. She expressed hope that next
year the Board would disclose the remuneration received by each
director of MMC to be in tandem with international best
practice.
Page 4 of 11
Ms. Lya Rahman also highlighted that based on the Annual Report,
one (1) independent director would be retiring at the conclusion
of today’s AGM. In light thereof, she requested for the Board to
consider a woman director to fill the vacancy. The Chairman
informed that the Board is supportive of board diversity subject
to the candidate fulfilling the criteria and merits required by
the Board.
(3) Mr. Lim Pin Yeong sought clarification on the development of
Melaka Gateway Port by the China investors and its effect on the
expansion plan of Tanjung Bruas Port. The GMD explained that MMC
is not a party to Melaka Gateway Port and thus unable to comment
on the matter. As for Tanjung Bruas Port, MMC has planned its
own business strategy given its huge potential to cater for
cargo from Sumatera, Indonesia. As informed in the earlier
presentation, MMC has entered into an Agreement with Pelindo IV
to form a collaboration to enhance commodity cargo from Sumatera
to Tanjung Bruas Port. The GMD added that the revenue from
Tanjung Bruas Port had been double ever since MMC took over the
management of the said port.
Mr. Lim Pin Yeong highlighted that prior the acquisition of NCB
by MMC, NCB had planned to dispose of Kontena Nasional (“KN”).
He enquired the rationale for MMC retaining KN although the said
company is not financially stable. The GMD clarified that since
commencing business, KN has a good track record except for one
particular occasion. He highlighted that KN is the only haulage
company in Malaysia that can carry classified items and has
warehouses at strategic locations throughout Peninsular
Malaysia. As such, MMC believes it can transform KN within a
reasonable timeframe.
Mr.Lim Pin Yeong sought the explanation from MMC on the
advantages and disadvantages of consolidating Malakoff’s
accounts with MMC. The GMD explained that the Companies Act 2016
requires MMC to prepare equity financing in the Financial
Statement for its investment in Malakoff since Malakoff is an
associate company.
Mr. Lim Pin Yeong made reference to item “Others” under
“Administrative and other operating Expenses” appearing on page
50 of the Annual Report. He sought clarification on the
particulars included in the said item and the increase in the
figures to RM90 million in FYE 2016 compared to RM59.7 million
in the previous year. The GMD clarified that other operating
expenses are a combination of various items such as licensing
fee for SAP, marketing and promotion expenses, etc. The amount
had increased from the previous year as there were more
companies under MMC in 2016 compared to 2015.
Mr. Lim Pin Yeong further referred to “trade and other
receivables” appearing in Note 24 of the Annual Report and
enquired on the significant increase in trade and other
receivables compared to previous year. The GMD responded that
the Management is tracking closely all debtors and monitoring
credit aging stringently during this challenging time. In fact,
these items have been included as one of the Key Performance
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Indicators (KPI) for the Finance Departments in the Group. The
trade receivables have increased as there were more companies
under MMC compared to the previous year. The balance of the
receivables is from good creditors with below 90 days credit
period.
4) Mr. Mootha a/l Bass sought clarification on the disparity
between the acquisition and disposal sum of certain companies
under MMC and whether proper evaluations were made prior to
these companies being disposed of. In addition, he also enquired
on the benefits that shareholders will gain from the said
transactions. The GMD clarified that Tepat Teknik Sdn Bhd had
ceased operation and not being disposed of by MMC. Essentially,
the Board was of the view that due to the stiff competition from
the backyard operations, the fabrication business is no longer
viable. Furthermore, the land on which the factory is situated
has been acquired by the Government under the Compulsory
Acquisition Act to build a road. Tepat Teknik was given a
compensation of RM50.0 million by the Government.
In respect to disposal of MMC Oil and Gas Sdn Bhd (“MMCOG”), the
disposal consideration for MMCOG was based on the valuation
carried out by Messrs. Deloitte. As for Penang Port, the Board
was of the view that there is an accretive opportunity to invest
in Penang Port, which is making a profit of RM70 million (except
for its ferry business) which invariably provide a better return
to the shareholders in the long run. In summary, the GMD
enlightened that there is an opportunity for MMC to invest with
different sizes of investment which eventually portrays a
substantial difference between the disposal and acquisition sum
in the accounts.
Mr. Mootha a/l Bass highlighted that there were some dignitaries
were under the Malaysian Anti-Corruption Commission (“MACC”)
investigation list and hoped that none of MMC directors is in
the said list. The GMD explained that new directors of MMC would
have to undergo a background check with MACC prior to their
appointment to the Board of MMC.
5) Mr. Leo Ann Puat highlighted that based on the Profit and Loss
Account, the interest on borrowings has increased compared to
previous year. In light thereof, he sought clarification
whether there is policy to reduce the gearing of the Group. The
Chairman informed that the Management had taken steps to manage
the gearing. In addition, the Group would continuously be
looking at new ways of refinancing the debts and reducing the
interest rates accordingly.
6) Mr. Ng Aik Pheng commented that the share price of MMC should
have performed better. The GMD explained that the share price
had increased from RM2.33 at the end of 2016 to RM2.54 which
shows an increase of 21.4%.
Page 6 of 11
7) Mr. Shak Kum Choy enquired on the risk of probable reduction of
containerized shipment and its implication to the port business.
He made reference to the closure of smaller ports in Singapore.
The GMD explained that in MMC Group, only PTP is involved in
transshipment business. He further expressed confidence that the
future for PTP in transshipment business is bright and the
business will continue to grow. He further explained that
Singapore Government has closed smaller ports and expanded Tuas
Port to enable the port to handle more capacity which denotes
that the transshipment business is expanding. Therefore, PTP
needs to be ready to expand to cater for the increasing volume
of transshipment business.
Mr. Shak Kum Choy further enquired whether there is any increase
in freight cargo in Senai Airport and the strategy to increase
the same. The GMD responded that MMC had undertaken a study and
the results have shown that the Senai Airport connectivity is
not extensive compared to KLIA. Instead of depending on the
limited extension in Senai, the company has started the truck
services from Senai to KLIA. The GMD further added Air Asia had
started a new route from Johor Bahru to India which is expected
to increase the connectivity and thus give rise to the expansion
of freight cargo accordingly.
Mr. Shak Kum Choy sought clarification whether any of MMC ports
requires dredging and if so whether MMC is given the contract to
provide the said works. The GMD explained that most of the ports
under MMC do not require much dredging. However, the current
wharf in certain ports needs to be deepened. In terms of the
dredging works, the GMD explained that MMC would have to deal
with a third party company which has the capability and
resources to undertake the works.
Mr. Ng Aik Pheng commented that some years back, Anglo Oriental
used to own a licence to undertake the dredging works. The
Chairman informed that since MMC is operating most of the major
ports in Peninsular Malaysia, there is a possibility of MMC,
through a subsidiary to carry out dredging works. Nevertheless,
it would require further study and analysis by MMC on the
matter.
8) Ms. Chong Siew Yoon highlighted on the increasing trend to use
road and railway as the mode of transport to carry freight as
the cost will be lower with a shorter time frame to reach the
destination. In such situation, she enquired whether there is
any threat to the existing port business. The GMD explained that
shipping is still the most cost effective way of transporting
goods whilst the land transportation will complement the sea
transportation.
Since there were no further questions, the Chairman declared that the
Audited Financial Statements of the Company for the Financial Year
Ended 31 December 2016 and the Directors’ Report and Auditors’ Report
thereon be received.
Page 7 of 11
AGENDA 2
DECLARATION OF A FINAL SINGLE-TIER DIVIDEND OF 4.0 SEN PER SHARE
Mr. Mootha Kumaran A/L Bass proposed that Ordinary Resolution 1 be
approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised by the shareholders, the
Chairman proceeded to Resolution 2.
AGENDA 3
PAYMENT OF DIRECTORS’ FEES AMOUNTING TO RM1,200,000 TO THE
NON-EXECUTIVE DIRECTORS OF THE COMPANY
Mr Mootha Kumaran A/L Bass proposed that Ordinary Resolution 2 be
approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised by the shareholders, the
Chairman proceeded to Resolution 3.
AGENDA 4
RE-ELECTION OF DATUK OOI TEIK HUAT PURSUANT TO ARTICLE 78 OF THE
COMPANY’S CONSTITUTION
Mr Saiful Idham Yusof proposed that Ordinary Resolution 3 be
approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised, the Chairman proceeded with
Resolution 4.
AGENDA 5
RE-ELECTION OF DATO’ ABDUL HAMID SH MOHAMED PURSUANT TO ARTICLE 78 OF
THE COMPANY’S CONSTITUTION
Ms Syarifah Aisyah Syed Abd. Rahman proposed that Ordinary Resolution
4 be approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised, the Chairman proceeded with the
next agenda.
Page 8 of 11
AGENDA 6
RE-APPOINTMENT OF MESSRS. PRICEWATERHOUSECOOPERS AS AUDITORS OF THE
COMPANY AND TO AUTHORISE THE DIRECTORS TO FIX THEIR REMUNERATION
Mr Saiful Idham Yusof proposed that Ordinary Resolution 5 be
approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised, the Chairman proceeded to the
special business of the 41st AGM.
AGENDA 7
TO APPROVE THE CONTINUING IN OFFICE BY DATO’ ABDULLAH MOHD YUSOF AS
AN INDEPENDENT NON-EXECUTIVE DIRECTOR OF THE COMPANY AND TO HOLD
OFFICE UNTIL THE CONCLUSION OF THE NEXT ANNUAL GENERAL MEETING OF THE
COMPANY
Ms Syarifah Aisyah Syed Abd. Rahman proposed that Ordinary Resolution
6 be approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised by the shareholders, the
Chairman proceeded to the last agenda of the meeting.
AGENDA 8
TO APPROVE THE CONTINUING IN OFFICE BY DATUK OOI TEIK HUAT AS AN
INDEPENDENT NON-EXECUTIVE DIRECTOR OF THE COMPANY AND TO HOLD OFFICE
UNTIL THE CONCLUSION OF THE NEXT ANNUAL GENERAL MEETING OF THE
COMPANY
Mr Saiful Idham proposed that Ordinary Resolution 7 be approved.
Before putting the motion to the Meeting, the Chairman invited
questions from the floor.
Since there were no questions raised by the shareholders, the
Chairman proceeded with the voting of all the resolutions tabled at
the meeting. Prior to the commencement of the voting, the Chairman
called upon the Company Secretary to brief the e-polling process.
Upon completion of the briefing, the Chairman informed the
shareholders that the casting and verification of the votes would
take approximately 20 minutes. He further requested the shareholders
to return to their seats after e-voting for the announcement of the
results. The Chairman placed on record that several shareholders have
appointed him to be their proxy and will vote per their instructions.
Page 9 of 11
At 12:45 pm, the Chairman called the Meeting to order and announce
the results of the e-polling as follows:
1) Declaration Of A Final Single-Tier Dividend Of 4.0 Sen Per Share
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 1
2,779,407,70
9
99.9998 6,600 0.0002
The Chairman declared that Ordinary Resolution 1 carried.
2) Payment Of Directors’ Fees Amounting To RM1,200,000 To The
Non-Executive Directors Of The Company
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 2
2,779,272,609 99.9996 12,400 0.0004
The Chairman declared that Ordinary Resolution 2 carried.
3) Re-Election Of Datuk Ooi Teik Huat Pursuant To Article 78 Of The
Company’s Constitution
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 3
2,218,928,009 99.9906 207,800 0.0094
The Chairman declared that Ordinary Resolution 3 carried.
4) Re-Election of Dato’ Abdul Hamid Sh Mohamed Pursuant To Article
78 Of the Company’s Constitution
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 4
2,217,494,109 99.9261 1,639,700 0.0739
The Chairman declared that Ordinary Resolution 4 carried.
Page 10 of 11
5) Re-appointment Of Messrs. PricewaterhouseCoopers as Auditors of
the Company and to Authorise the Directors To Fix Their
Remuneration
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 5
2,779,284,409 99.9953 129,900 0.0047
The Chairman declared that Ordinary Resolution 5 carried.
6) To Approve The Continuing In Office By Dato’ Abdullah Mohd Yusof
As An Independent Non-Executive Director Of The Company And To
Hold Office Until The Conclusion Of The Next Annual General
Meeting Of The Company
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 6
1,759,822,909 79.3022 459,310,900 20.6978
The Chairman declared that Ordinary Resolution 6 carried.
7) To Approve The Continuing In Office By Datuk Ooi Teik Huat As An
Independent Non-Executive Director Of The Company And To Hold
Office Until The Conclusion Of The Next Annual General Meeting
Of The Company
Resolution FOR AGAINST
Number of
Shares
% Number of
Shares
%
Ordinary
Resolution 6
2,010,472,50
9
90.5971 208,663,100 9.4029
The Chairman declared that Ordinary Resolution 7 carried.
NOTE OF APPRECIATION TO TAN SRI DATO’ IR. (DR.) WAN ABDUL RAHMAN WAN
YAACOB
On behalf of the Board, the Chairman recorded his appreciation to Tan
Sri Dato’ Ir. (Dr.) Wan Abdul Rahman Wan Yaacob, who retired at the
conclusion of the 41st AGM. The Board recognised his utmost commitment
and invaluable contribution to the company throughout his 18 years
with the company.
Page 11 of 11
CLOSE OF MEETING
The Chairman expressed his appreciation to shareholders present for
their attendance.
There being no other business, the Meeting was declared closed at
1:15 p.m. with a vote of thanks to the Chairman.
Confirmed by,
- signed -
……………………………………………………………
Chairman
11 May 2017
Kuala Lumpur
MMC Corporation Berhad
Corporate Presentation
March 2017
2
MMC : PART OF A LARGER ALBUKHARY GROUP
• Automotive• Services• Property,
assets & construction
• Ports & Logistics• Energy & Utilities• Engineering &
Construction
Charitable trust
• Plantations• Rubber• Food
Tradewinds PlantationBerhad
Tradewinds CorporationBerhad
• Hotels• Property
development
MMC CorporationBerhad
DRB-Hicom Berhad
3
MMC HAS SEEN STRONG ASSET GROWTH OVER THE YEARS
7.9
10.0
32.9
37.5
40.6
45.4
2003▪ Tan Sri Syed Mokhtar Albukhary becomes substantial shareholder of MMC▪ Construction of SMART Tunnel by MMC-Gamuda JV
2005▪ Increased stake in Pelabuhan Tanjung Pelepas from 50.1% to 70.0%▪ Acquired 51.7% of Johor Port
2006▪ Acquired remaining stake in Johor Port Berhad
2007▪ Increased stake in Malakoff from 22.1% to 51.0%▪ Acquired a 20.0% stake in Red Sea Gateway Terminal▪ Completed SMART Tunnel
2008▪ Acquired 74.0% of Aliran Ihsan Resources Berhad
2009▪ Full acquisition of Senai
Airport
2011▪ Appointed as
PDP for KVMRT Line 1
2012▪ Listing of Gas Malaysia
Berhad▪ Acquired remaining stake
in Aliran Ihsan Resources Berhad
▪ Awarded tunnelling job for KVMRT Line 1
2014 - 2015▪ Listing of Malakoff▪ Acquired 86.7% of NCB Hldg Bhd▪ Appointed as Project Delivery
Partner for KVMRT Line2▪ Completion of EDTP project▪ Additional 2 berths at PTP▪ Secured 3 mega projects: Langat 2,
Langat Sewerage & PengerangCogen
▪ Awarded 2 new contracts for Zelan –MOLF Jetty & Kuala Terengganu Drawbridge
2016 - 2017▪ Acquired 70% of Tanjung Bruas Port▪ Disposal of MMCOG▪ Acquired 49% of Penang Port▪ Hold 99.08% of NCB Holdings Berhad▪ Awarded KVMRT Line 2 Tunneling works▪ Awarded PDP Pan Borneo Sabah Highway
3MMC Corporation BerhadAssets (Rm bil)
34.4
36.8
53.7As at Dec 2016
4
DIVERSIFIED INFRASTRUCTURE CONGLOMERATE
The Port of Tanjung Pelepas
▪ Transshipment hub▪ 70% shareholding▪ 30% owned by APMT
Johor Port Berhad
▪ Wholly-owned by MMC▪ A multi-purpose port
NCB Holdings
▪ 99% shareholding
Malakoff Corporation Berhad
▪ Power and water generation company
▪ 37.6% shareholding
Gas Malaysia Berhad
▪ Natural gas distribution company▪ 30.9% shareholding
Aliran Ihsan Resources Berhad
▪ Wholly-owned by MMC▪ A water treatment specialist
MMC-Gamuda Joint Venture Sdn Bhd
▪ PDP for KVMRT Line 1 and 2▪ Main contractor for underground
package of KVMRT Line 1 and 2
SMART Tunnel
▪ First of its kind, dual purpose tunnel
▪ 50% shareholding
Zelan Berhad
▪ Engineering & Construction company.
▪ 39.2% shareholding
MMC Engineering Services▪ Wholly-owned by MMC▪ Pengerang Co-gen Plant project.▪ Langat 2 Water Treatment Plant.
MMC Pembetungan Langat SB▪ Wholly-owned by MMC▪ Langat Centralized Sewage
Treatment.
Ports & Logistics Energy & Utilities Engineering & Construction
UEM MMC JV SB▪ 50:50 JV▪ The JV through 40% stake in Borneo
Highway PDP Sdn Bhd (BHP) awarded with PDP role for Pan Borneo Highway (Sabah portion)
Penang Port Sdn Bhd
▪ 49% shareholding
Red Sea Gateway Terminal (RSGT)
▪ 20% shareholding
Senai Airport Terminal Services Sdn Bhd
▪ Wholly-owned by MMC▪ Airport operations
KMB Seaport (Tg. Bruas)
▪ 70% shareholding
5,054 4,609
444 673
294 550
5
FY2016 Revenue Breakdown
FY2016 PATMI Breakdown
Revenue & Profitability (YoY) Borrowings Breakdown (RM billion)
47%
Revenue PBT PATMI
GROUP FINANCIAL HIGHLIGHTS
RM3.1 b
As at December 2016
RM1.4 b
RM0.7 b
RM2.7 b
RM0.6 b
Total borrowings: RM9,047 mil
Shareholding StructureAs at December 2016
FY2015
FY2016
87%
* *
*Excluding gain on Malakoff IPO: RM1,349 mil
9%
Seaport Terminal
(Johore) SB, 51.76
PNB, 20.28
EPF, 4.93
KWAP, 3.45
LTH, 6.90
Foreign, 4.22
Local, 8.45
MMCB, 3,196 , 35%
PTP, 2,546 , 28%
JPB, 645 , 7%
NCB, 349 , 4%
MMC Port, 1,411 , 16%
SATS, 561 , 6%
Others, 339 , 4%
59%33%
8%
41%
21%
39%
Ports & Logistics
Engineering & Construction
Energy & Utilities
Corp. & Others
Northern Region
▪To become the high-tech electronics hub▪Agricultural projects
Central Region
▪National Load Centre▪Handles 35.0% of
Malaysia’s seaborne trade
Iskandar Region
RM188 billion investments in various sectors since 2006 – Nov ‘15
Ports are strategically located on the more industrialized southern & western coast
5 Terminals in Malaysia and 1 in Jeddah
PTP
Johor Port
Penang Port
Northport
MMC Ports Capacity: 19.3 mil TEUs 2015 Throughput: 14.1 mil TEUs
• Approximately 58% of Malaysian container market share
• Approximately 34% market share of Malaysia’s conventional cargo throughput (excluding LNG).
Melaka Port
MALAYSIA’S LARGEST PORT OPERATING GROUP
89.1 81.0
69.3 63.8 60.5
36.2 27.2
14.1 14.0 13.5
Co
sco
/ Ch
ina
Sh
ipp
ing
Hu
tsh
iso
n
AP
MT
PS
A
DP
Wo
rld
Te
rmin
al
Inve
stm
en
t
Ch
ina
Me
rch
an
ts
MM
C P
ort
s
Eu
rog
ate
Ha
nji
n
Global International Terminal Operators (total mil TEU basis)1
23
4 56
7 89 10
Source: Drewry Annual Report 2016*internal ranking
*
Volume handled (in mil TEU): PTP (9.1), JPB (o.8), Northport (2.8), PPSB (1.3)
6
Hu
tch
iso
n
7
Engineering & Construction
PORTS & LOGISTICS DIVISION
8
FROM GREENFIELD INTO A WORLD CLASS TRANSSHIPMENT HUB
1990s 1997 2002 2004 2005 2008 2012 2014 2015
Commissioned - PTP official opening
- Maersk Line shifts its SEA hub to PTP
- Evergreen shifts its SEA hub to PTP
- PTP reached 4 mil TEUs
- MMC increase stake to 70%
- CMA CGM starts calling PTP
- PTP reached 6 mil TEUs
- Capacity 8.5 mil TEUs
- Completion of Berth 13 & 14
- Capacity 10.5 mil TEUs
- Handled 8.5 mil TEUs
-2M Alliance commence
- PTP reached 9.1mil TEUs
Undeveloped area World’s leading transhipment hub
2.02.7
3.54.0 4.2
4.85.5 5.6
6.06.5
7.5 7.7 7.6
8.59.1
8.3
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
2010
2011
2012
2013
20
14
2015
20
16
9
LEADING TRANSSHIPMENT HUB
▪ 70:30 Joint venture with APM Terminal (which
owns Maersk Line – the largest shipping liner in
the world).
▪ 14 berths forming 5.04 km of linear wharf.
▪ Handled 8.3 million TEUs in 2016.
Volume (TEUs in mil)
Volume Handled by Major Container TerminalsGeographical Advantage &
Global ConnectivityTEUs, in mil 2013 2014 2015 2016
Malaysia
PTP 7.62 8.52 9.12 8.30
Westports 7.47 8.37 9.05 9.90
Northport 2.88 2.57 2.83 3.22
Penang Port 1.24 1.30 1.32 1.40
Johor Port 0.76 0.79 0.8 0.83
TEUs, in mil 2013 2014 2015
Regional
Shanghai 33.62 35.29 36.5
PSA 32.24 33.55 30.6
Hong Kong Port 22.29 22.28 20.1
Shenzhen 23.28 21.69 24.5
10
MALAYSIA’S SOUTHERN GATEWAY
1986 1996 2004 2006 2014 2015
Commencement of Phase II operations (Dry Bulk & Liquid Non-edible Jetty)
Listed onmainboardKLSE.
Certified as an LME port and listed on LME
(London Metal Exchange).
100%subsidiary ofMMCCorporation;JPB delisted.
Largest Palm Oil Terminal in the worldRanked 6 out of 35 worldwide LME
accredited portsMain gateway for Southern
Malaysia's import/export requirements.
1.2 1.2 1.2 1.1 0.9 1.0 1.1
10.8 11.6 10.6 10.6 11.1 12.7 12.0
3.7 4.1 4.6 5.3 4.8 4.4 4.4
9.9 9.4 9.5 10.0 10.5 10.6 10.3
2010 2011 2012 2013 2014 2015 2016
Throughput
break bulk Liquid bulk dry bulk container
25.6
11
Engineering & Construction
▪ JPB have a designed capacity of 40 mil MT with
24 berths spanning 4 km.
▪ Volume handled in 2016 was 27.8 mil MT
▪ World's largest palm oil terminal - Storage
capacity of 460,000 MT.
▪ Ranked 6th in the world in terms of London Metal
Exchange volume of 430,000 MT for the storage
and handling of non-ferrous metal.
▪ No. of berths : 3
▪ Quay length : 710m
▪ Capacity: 1.2 mil. TEUs
▪ Max depth : 14m
Container Break BulkLiquid BulkDry Bulk
▪ No. of berths : 4
▪ Quay length : 818m
▪ Max depth : 13.8m
▪ No. of berths : 13
▪ Quay length : 2,292m
▪ Max depth : 13.5m
▪ No. of berths : 4
▪ Quay length : 935m
▪ Max depth : 13.8m
MALAYSIA’S SOUTHERN GATEWAY
25.9 27.0 27.328.7
27.826.3
THE PIONEER IN THE MARITIME TRADE
1901 1963 / 64 1973 1986 2000 2014
- Official opening of Port Swettenham
- Managed by Malayan Railway Administration (MRA).
The beginning of containerization at Northport
The KlangContainer Terminal (KCT) became first privatization exercise in Malaysia.
MMC emerged as a substantial shareholder of NCB Holdings
Management of port handed over to PortKlang Authority (PKA) with the completion of 4 berths.
Restructuring exercise by PNB –the birth of NCB Holdings
12
13
Engineering & Construction• Situated in Port Klang, Northport provides both
conventional and containerized cargo handling
facilities.
• Its container terminal have an annual capacity of 5.6
mil TEUs, with 12 berths spanning over 4.1km in quay
length.
• Northport is undergoing an expansion program to
push its installed capacity to 6.2 mil TEUs.
Profit after taxation
HIDDEN GEMS
Conventional Cargo
3.23.23.0 2.9
2.62.9
Container Volume
7.217.75
8.23
9.84
8.28 8.38 8.01
2010 2011 2012 2013 2014 2015 2016
1.8 1.7 1.61.4 1.5 1.5
1.41.3 1.3
1.21.4
1.7
2011 2012 2013 2014 2015 2016
TE
Us,
in m
il
Local Transshipment
149
135
126
52
28
22
104
147
147 16
7
127
83
78
119
(5)(18)
(43)
(75)(56) (59)
(6)
2010 2011 2012 2013 2014 2015 2016
NCB Northport KN
14
Engineering & Construction
ENERGY & UTILITIES DIVISION
15
Engineering & Construction
▪ Local generation capacity grew from 3,760 MW in 2007 to 6,350MW
(29% of generation capacity in Peninsular Malaysia).
▪ Aspire to double generation capacity to 10,000 MW by 2020, with a mix of
70:30 for local and international.
▪ Leverage on land bank with long remaining land leases life with ~47 years for
further capacity expansion or contract extension beyond life of existing PPAs.
▪ Pursue additional investments or acquisitions with attractive returns.
Malaysian Independent Power Generation International Independent Water Production & Power Generation
Prai Power Plant350 MW100% Owned
SEV Power Plant1,303 MW94% Owned
GB3 Power Plant640 MW75% Owned Kapar Power
Plant2420 MW40% Owned
Port Dickson Power Plant440 MW100% Owned
Tanjung Bin Power Plant2100 MW 90% Owned
Tanjung Bin Energy Power Plant1,000 MW
100% Owned
Total power generating capacity2,229 MW (Gross)690 MW (Net)
Total water desalination capacity1,831,000 m 3/day (Gross)444,800 m3/day (Net)
Total power generating capacity8,253 MW (Gross)6,350 MW (Net)
Souk Tleta IWP200k m3/day36% Owned
Hidd IWPP410k m3/day900 MW 40% Owned
Al Ghubrah IWP 191k m3/day45% Owned
Shuaibah Phase 3 Expansion IWP150k m3/day12% Owned
Shuaibah Phase 3 IWPP880k m3/day900 MW12% Owned
Macarthur Wind Farm420 MW50% Owned
INTERNATIONAL POWER & WATER PLAYER
112 108118
125 128139
148159
164
2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
MM
Btu
16
Engineering & Construction
▪ Natural Gas - Cost efficient and environmentally friendly.
▪ Sole supplier in Peninsular Malaysia since 1993.
▪ Serves 819 industrial customers, 2,260 commercial customers and
35,298 residential customers (FY2016).
▪ Over 2,000km of pipeline across Peninsular
Gas Malaysia Berhad
▪ Specialises in the full spectrum of water treatment, with 20 years
experience in operations, maintenance and rehabilitation of
facilities.
▪ Currently operates and manages 3 water treatment plants in
Perak (Taiping, Gunung Semanggol and Kuala Kangsar), Malaysia
Aliran Ihsan Resources Berhad
Currently, MMC is exploring opportunities to develop and maintain a
modern and efficient sewerage system for the Malaysian public.
GMB has ventured into virtual pipeline and combined heat and power
(CHP) projects as well as supplies compressed natural gas (CNG)/
liquefied natural gas (LNG) for the transportation industry.
GAS DISTRIBUTION & WATER TREATMENT
17
Engineering & Construction
ENGINEERING & CONSTRUCTIONDIVISION
No. Project JV PartnerValue
(RM mil)Award Date
Duration
1 Langat Sewerage Project N/A 1,505 Oct 2014 6 years
2 Langat 2 Water Treatment PlantSalcon and
Ahmad Zaki 1,000 April 2014 3 years
3MRT Line 1: Sg. Buloh- Kajang (41.5km) -Project Delivery Partner
Gamuda 13,000 Jan 2012 5 years
4MRT Line 1: Sg. Buloh-Kajang (9.5km) -Underground
Gamuda 8,280 Feb 2012 5 years
5MRT Line 2: Sg. Buloh – Putrajaya(38.7km)Project Delivery Partner
Gamuda 12,000 2014 5 years
6MRT Line 2: Sg. Buloh – Putrajaya (13.5km)Underground
Gamuda 15,470 2016 6 years
7 RAPID COGen Plant Siemens 3,500 2014 3 years
8 Pan Borneo Highway Sabah – PDP role UEM 12,860 April 2016 6 years
Total Project Value 67, 615
MMC’s effective remaining orderbook 19,669
ON GOING PROJECTS: ORDERBOOK STANDS AT RM19.7 BIL
18
KVMRT PDP Role – Line 1 & 2KVMRT (Tunnel) – Line 1 & 2
Project Delivery Partner for SBK line and SSP line of KVMRT project
Construction of tunneling works for KVMRT SBK line 1 (9.5km) and SSP line 2 (13.5km)
Pan Borneo Highway – PDP role
Project Delivery Partner for Pan Borneo Highway of 706km (Sabah portion)
Langat Centralized Sewage PlantLangat 2 Water Treatment Plant
Construction of a sewer pipe network in Langat river basin catchment
Construction of 1,130 MLD water treatment plant and water reticulation system in Langat.
Pengerang Co-gen
Project Value: RM8.3 bil (line 1)RM15.5 bil (line 2)
Project Value: RM13.0 bil (line 1)RM12.0 bil (line 2)
Project Value: RM12.8 bil
Project Value: RM993.9 mil Project Value: RM1.5 bil Project Value: RM300 mil
ON GOING MEGA PROJECTS
Undertaking civil and infrastructure facilities work for Co-gen plant in RAPID, Pengerang.
19
1.17 1.22 1.32 1.33 1.80 2.07 2.23 2.35
0.14 0.02 0.02 0.05
0.19 0.25
0.36 0.48
2009 2010 2011 2012 2013 2014 2015 2016
Domestic International
20
GATEWAY TO ISKANDAR MALAYSIAGATEWAY TO ISKANDAR MALAYSIA
▪ Airport was constructed in 1974
▪ 50 years Concession Agreement with Federal
Government of Malaysia for total airport land of
1,225 acres
▪ Currently has a 2.5 million passenger capacity,
easily extendable to 4.0 million
▪ Handled 2.83 million passengers in 2016, up
9.7% YoY.
▪ Air Asia operates 5 International routes
currently; Surabaya (7x weekly), Jakarta (3x
weekly), Ho Chi Minh (7x weekly), Bangkok (4x
weekly) and Guangzhou (7x weekly).
▪ Senai Airport remains committed to grow its
passenger especially the international segment
through establishing more new routes from
Senai.
▪ Future increase in passengers from Forest City
development and Pengerang RAPID project.
Mill
ion
pas
sen
ge
r
Domestic paxCAGR: 9%
International paxCAGR: 17%
Guangzhou
2.832.59
2.32
1.991.38
1.341.241.31
21
HUGE POTENTIAL FOR EXPANSION
Year 2003 – 2012 (10 Years)• Upgrading of the passenger terminal, • Construction of the cargo terminal, • Enhancement of aerodrome and facilities,• Development of commercial, free zone and aviation
park
Year 2013 – 2022 (10 Years)• Senai Airport Aviation Park (“SAAP”)
Commercial Zone
Airside Development
Terminal Building
Cargo Centre
Aviation Park Phase 1
Aviation Academy
Airport Free Zone
22
Airport Runway
Airside Perimeter
Commercial Zone Approx. 20 acres
SENAI AIRPORT FREE INDUSTRIAL ZONE (SAFIZ)
Total area: 63 acresLand available: 8.3 acres
2012 2013 2015
▪ Leased to Celestica▪ Industrial warehouse
▪ Leased to Pokka▪ Beverages factory
▪ Leased to 25 ac. To PALI▪ Warehouse distribution center
23
Engineering & Construction
A WORK-LIVE-DEVELOP-MEET-PLAY ENVIRONMENTSENAI AIRPORT CITY
The Senai Airport City consists of an integrated2,718.68 acres of free zone and mix industriesdevelopment located adjacent to the SenaiInternational Airport.
The Senai Airport City will be developed as apremier development with an integrated Work-Live-Develop-Meet-Play environment.
The Park will provide industrial vacant plots, ready-built factories, office, incubators and laboratoriesfacilities for rental to potential investors.
The main components of the Senai Airport City development are :
ZONE 1 : 1,039 acres will be developed into a High-Technology IndustrialPark
ZONE 2 : 1,027 acres as a free zone Cargo and Logistics Park
ZONE 3 : 651 acres to be developed into a Commercial and ResidentialPark
24
UNLOCKING VALUE THROUGH LAND SALESENAI AIRPORT CITY
SENAI AIRPORT CITY
Available Land Area: 2,104 acres
2,718
Acres of integrated development land with a masterplan comprising industrial, commercial and residential properties
365
Acres of free industrial zone. Phase 1 – 180 acres of free industrial zone completed with custom building, check point, CCTV and perimeter fencing
Infrastructure
Completed with infrastructure ready via underground connectivity i.e. electricity, water, telecommunication and specialty industrial gasses
Access & Connectivity
Highway network to North-South expressway linked to Port of Tanjung Pelepas, Singapore & Kuala Lumpur, Senai-Desaru expressway connecting to Johor Port
63 ac
87ac
196 ac
294 ac
Sold 573ac
Leased 66ac
Available FIZ Lease 353ac
Phase 2 Expansion 490ac
MRO
MIXED DEVELOPMENT
MIXED DEVELOPMENT
25
TANJUNG BIN PETROLEUM & MARITIME CENTER
2,255 acres
▪ Land area: 1,588 acres with 1.9km shoreline
▪ Lettable plot:
➢ Heavy Industry – 653.4 acres
➢ Medium Industry – 253.5 acres
➢ Commercial Plot – 85.3 acres
▪ Ecotourism – Mangrove Park: 217 acres
PHASE 2
PHASE 1
PHASE 2 FUTURE EXPANSION
▪ 123 acres
▪ 30-year land lease
▪ 41 storage tanks
Sg Pulai Bridge & road network – reduce travellingtime from main highway, PTP & Senai Airport
▪ Land area: 667 acres with 1.7km shoreline
▪ Lettable plot:
➢ Heavy Industry – 210 acres
➢ Medium Industry – 69 acres
➢ Commercial Plot – 39 acres
▪ Basic utilities infrastructure in place
▪ Free Industrial Zone status
▪ Phase 1 – almost fully reclaimed available immediately
▪ Common liquid jetties – plan for 7 jetties
PHASE 1
27
DISCLAIMER
This presentation is not intended to form the basis of any investment decision with respect to MMC Corporation Berhad(MMC). Neither this presentation nor anything contained herein shall form the basis of, or be relied upon in connectionwith, any contract or commitment whatsoever. This Presentation is solely based upon Information of MMC. Norepresentation or warranty, express or implied, is or will be made by MMC in relation to, and no responsibility or liability isor will be accepted by MMC as to the accuracy and completeness of, the Information made available, and any liabilitytherefore is expressly disclaimed.
This Presentation contains “forward-looking statements”. Forward-looking statements by their nature involve known andunknown risks, uncertainties and other factors that are in many cases beyond MMC’s control. Although MMC believes thatthe expectations of its management as reflected by such forward-looking statements are reasonable based on informationcurrently available to it, no assurances can be given that such expectations will prove to have been correct. Accordingly, youare cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only asof their dates, and MMC 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 MMC.
Investor Relations | www.mmc.com.my