D s i c s lai l m ai er

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1 Disclaimer The information in this presentation does not constitute or form any part of an offer, invitation or recommendation to subscribe for, retain, or purchase any securities in Mencast Holdings Ltd. Information in this presentation, or anything contained in it, will not form the basis of any contract or commitment whatsoever. This presentation has been prepared by Mencast Holdings Ltd. on the information available. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions in this presentation. This presentation was prepared exclusively for the parties invited for the purposes of discussion and must be viewed in conjunction with the oral presentation provided by the officers of Mencast Holdings Ltd. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. The reader(s) of this presentation should consult his or her own independent professional advisors about the issues discussed herein. Neither this presentation nor any of its content may be copied or used without the prior consent of Mencast Holdings Ltd. 1

2 Disclaimer This presentation and its contents have been reviewed by the Company s sponsor, CIMB Bank Berhad, Singapore Branch (the Sponsor ), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the SGX-ST ), this being the SGX-ST Listing Manual Section B: Rules of Catalist. The Sponsor has not independently verified the contents of this document. This presentation has not been examined or approved by the SGX-ST and the Sponsor and the SGX-ST assume no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document. The contact person for the Sponsor is Mr Mah Kah Loon, Head, Corporate Finance, CIMB Bank Berhad, Singapore Branch, 50 Raffles Place, #09-01 Singapore Land Tower, Singapore , telephone (65) Disclaimer The views expressed by Mencast Holdings Ltd. (the External Party ) on the occasion of CIMB Securities Corporate FOCUS: Mencast Holdings Ltd. are the personal views and opinions of the External Party (the External Party s Views ) and in no way reflect the views, opinions, expressions or representationsof CIMB Securities (Singapore) Pte Ltd. CIMB Securities has no, and will not accept any, obligation to check or ensure (i) the reliability, relevancy or fairness of the External Party s Views, or (ii) the accuracy or completeness of the External Party s Views. Without prejudice to or derogating from the generality of the foregoing, no representation or assurance is given by CIMB Securities (Singapore) Pte Ltd that the External Party s Views contain all information that an investor may require. To the extent permitted by applicable law, CIMB Securities (Singapore) Pte Ltd, or any of its affiliates, or its related persons (and their respective directors, associates, connected persons and/or employees) shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) arising from the reliance or use of the External Party s Views. Investors are advised to make their own independent evaluation of the External Party s Views, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects as investors may regard as relevant. 2

3 Presentation Outline Group Overview Financial Review (FY2010) Business Overview Group Overview Group Overview 3

4 Share Information 52-week range Market Capitalization P/E ratio P/B ratio Dividend yield FY2010 No. of Shares S$ S$ S$ 76m 24/6/11 : S$ x (1) (2) 1.9 x (1) (3) 3.0% (1) 170,572,600 Major Shareholders Sim Family (57.5%) Gay Chee Cheong (5.23%) Notes: 1) Based on the closing price of S$ per share on 24 June ) Based on the earnings per share for FY2010 of 5.39 cents 3) Based on the book value per share as at 31 December 2010 of 23.8 cents Group Organizational Structure Mencast Holdings Ltd. 100% 100% 100% 100% 100% Mencast Marine Pte Ltd Mencast Engineering Pte Ltd M.B.A. Heavy Industries Pte Ltd Mencast Offshore & Marine Pte Ltd (formerly known as Mencast Investment Pte Ltd) Recon Propeller & Engineering Pte Ltd 51% TG Offshore Pte Ltd 100% Top Great group of companies (1) 100% Unidive group of companies Notes : (2) (1) Pursuant to a sale and purchase agreement dated 18 May The acquisition is expected to be completed by end July (2) Pursuant to a sale and purchase agreement dated 21 June The acquisition is expected to be completed by end July

5 Operating Locations (*) Operating Locations Descriptions Built-Up Area (sqm) No. 7 Tuas View Circuit Sterngear equipment manufacturing 6,698 No. 12 Kwong Min Road Mainly staff accommodation and storage area 2,946 No. 39 Tuas Avenue 13 Sterngear services (Under Recon Propeller) 1,550 No. 24 Loyang Crescent Offshore and Marine Structure Fabrication 2,975 6 Tech Park Crescent Singapore Topside (Rope Access) and subsea (diving) services for the offshore and inshore marine industry, particularly in Inspections, Repairs & Maintenance. 1,718 Construction In Progress Descriptions Site Area (sqm) 42E Penjuru Road Manufacture heavy rudder assemblies and highend sterngear equipment for the marine and offshore industries Construction date: 2010 Commencement of full operations : ,466 *Assuming that the acquisition of 100% of the Top Great and Unidive group of companies have been completed. Mencast - No. 7 Tuas View Circuit Operating Locations Mencast - No. 12 Kwong Min Road Recon - No. 39 Tuas Avenue 13 5

6 28/6/2011 Operating Locations Top Great- Singapore Headquarter at 24 Loyang Crescent Top Great- Malaysia office at No. 30, Jalan Masyhur 1, Taman Perindustrian Desa Cemerlang Ulu Tiram, Johor Bahru Operating Locations Top Great- Indonesia Office at Jln. Brig. Jend. Katamso Km 5, 5 Tanjung Uncang Batam, Kepri, Indonesia Top Great- Oman Office at PO Box No. 398, Azaiba, PC: 130 Sultanate of Oman 6

7 Operating Locations Unidive Singapore Office at 6 Tech Park Crescent Singapore Group Profile MENCAST Established in 1981, Mencast is a marine service company and the leading sterngear manufacturer and repair company in Singapore. 100% Existing facilities 9,944 sqm of built-up area for repair, manufacturing and staff accommodation. 100% 100% Waterfront facilities Recon Propeller Top Great group of companies (*) 35,466 sqm of built-up area for high end manufacturing and repair for Oil & Gas and Marine industries from 2H ,550 sqm of built-up area for Sterngear services. 100% 2,975 sqm of built-up area for Offshore and structure fabrication 100% Unidive group of companies (*) *The acquisition of 100% of the Top Great and Unidive group of companies is expected to be completed by end of July ,718 sqm of built-up area for Topside (Rope Access) and subsea (diving) services for the offshore and inshore marine industry, particularly in Inspections, Repairs & Maintenance. 7

8 Board of Directors Executive Chairman and Chief Executive Officer Glenndle Sim Glenndle is responsible for the overall management, strategic planning, operations and marketing of the Group. He graduated from the National University of Singapore with a Bachelor in Business Administration and later obtained a Master of Business Administration from the University of Delaware in the USA. From left to right: Independent Directors Ho Chew Thim Mr Ho is the Chairman of the Audit Committee and a member of the Remuneration Committee. He is an accountant by vocation and has over 33 years experience in financial management. He held senior financial positions in mainly listed companies and banks. Ng Eng Ho Mr Ng is Chairman of the Remuneration Committee and a member of the Audit and Nominating Committees. He is currently a Director of Audelia Pte Ltd, a consultancy and investment services firm in Singapore. Sunny Wong Fook Choy (Lead Independent Director) Mr Wong is Chairman of the Nominating Committee and a member of the Group's Audit and Remuneration Committees. A practicing advocate and solicitor of the Singapore Supreme Court, Mr Wong is currently the Managing Director of Wong Tan & Molly Lim LLC. Ng Chee Keong Mr Ng Chee Keong is our Independent Director. He is currently a special advisor to PSA International Pte Ltd ("PSA"). He is currently a special advisor to PSA International Pte Ltd ("PSA"). Milestones Year Event 1981 Established business Manufactured and repaired marine propellers, shaftings and bushings for repair fishing and bum boats 1993 Extended operations into the manufacturing and repairing of sterngear equipment for tugboats, ferries and standby vessels 2001 Extended capabilities to provide a full range of sterngear equipment and services for local and regional shipyards and ship owners Moved manufacturing operations from Choa Chu Kang Road to No. 7 Tuas View Circuit 2005 Centrifugal casting, became supplier of HRP Asia Pte Ltd 2006 Became supplier for Berg Propulsion Group 2007 Introduced computerized machines moving towards automation Became supplier for Becker Marine Systems 2008 Listed on SGX Catalist Acquired a new plant located at No. 12 Kwong Min Road 2009 Acquired Recon Propeller and Engineering Pte Ltd and the business of Denfon Engineering 2011 Entered into sale and purchase agreements to acquire the Top Great and Unidive group of companies. 1

9 Milestones ($ 000 Revenue) Acquired Penjuru Waterfront Land Acquired Recon Propeller and Engineering Pte Ltd Another Record Year FY2010 NPAT increased 21% over FY2009 FY2010 Revenue increased 22% over FY2009 FY2010 Dividend increased 10% to 1.1 cents per share over FY2009 FY2010 ROE of 21% 2

10 Group Overview Group Overview Financial Review: FY2010 FY2010: Income Statement S$ Change (%) Revenue 32,031 26, Remarks Higher revenue from sterngear services with contributions from subsidiary, Recon Propeller & Engineering Pte Ltd. Lower revenue from sterngear manufacturing due to slow down in shipbuilding industry. Gross Profit 15,958 12, Strong growth from increased revenue and margin expansion Gross Profit Margin 49.8% 47.3% - Better margins in sterngear services Net Profit Attributable to Equity Shareholders 8,495 7, th year of consecutive good growth Net Profit Margin 26.5% 26.8% - EPS (cents) FY range 23.2% % 3

11 FY2010: Financial Position S$ Cash and bank balances 11,604 12,706 Non-current assets 32,150 27,164 Total assets 62,141 48,548 Total debt 10,732 10,753 Total Equity 40,517 28,136 Net gearing ratio Net Cash Net Cash NAV per share (cents) Consistent Revenue Growth (all in S$ 000) FY FY2010: 19% CAGR 4

12 Consistent Profit Growth FY FY2010: 27% CAGR FY FY2010: 31% CAGR Business Overview 5

13 MMRO : Marine Maintenance Repair Overhaul Strong niche Market leader in segments served No significant new competitors in last decade Strategically located in Singapore Excellent track record CAGR Revenue : 19% NPAT : 31% Repeat orders from long term customers 30 years operating history Barriers to entry Services are time sensitive, high precision and mission critical Class certification, foundry expertise, Client base Comprehensive, capabilities and facilities Triple Play Strategy Announced Strategy Capacity Expansion New Business Streams M&A, Joint-ventures and Alliances Progress To-date Increase from 10,000sqm in 2008 to 40,000sqm in 2011 Worldwide propeller services Fleet maintenance program Expanded product range Acquisition of 100% of Recon Propeller Strategic Alliance with Becker Marine Systems TG Offshore JV Acquisition of 100% of the Top Great and Unidive group of companies (expected to be completed by end July 2011) 6

14 M&A Strategy Exploring M&A meeting the following criteria: 1) Earnings accretive 2) Well managed with good track record 3) Complementary to our business strategy 4) High Margins and ROE Business Highlights for 2010 & 2011 Services Star performer with strong revenue growth Margins remained robust Maiden contribution from TG Offshore JV Manfacturing Weathered slowdown in industry Expanded product range (eg. new range of sterngear equipment Mewis Duct) Corporate Successfully integrated Recon (M&A) Construction began on new waterfront land Entered into sale and purchase agreements to acquire 100% of Top Great and Unidive group of companies (M&A) 7

15 Sterngear Equipment 1

16 Sterngear Equipment Manufacturing We manufacture and supply a full range of sterngear equipment either as an integrated package or individual components, as required by our customers. We are the leading local manufacturer in Singapore. Sterngear Equipment Manufacturing High-lift Rudder Assemblies Kort Nozzle Rudder Blade 2

17 CPP Blades and Propeller Sterngear Services We recondition sterngear equipment, restore and repair worn out or damaged sterngear equipment to make it sea-worthy. We also refurbish or modify existing equipment to maximize its efficiency and to meet the vessel s certification requirements. Final Calibration and Report Sterngear Services 3

18 Sterngear Services Sterngear Services 4

19 Sterngear Services Sterngear Services 5

20 Foundry Operation Our foundry is designed and built specifically for the production of copper alloy castings of sterngear equipment. It has a melting capacity of approximately 6 tonnes of electric furnace which delivers high quality melt. Foundry Operation 1

21 Waterfront Facility: Update Waterfront Facility: Update 2

22 Waterfront Facility: Update Waterfront Facility: Update 3

23 Waterfront Facility: Update Foundry Expansion 4

24 Strategic Alliance with Becker Marine Systems Preferred Manufacturer of Becker Marine Systems Becker is the global market leader for high-end performance rudder and manoeuvring solutions To capture new customers from Korea, Japan and China Mencast is the preferred manufacturer of heavy rudder assemblies and high-end sterngear equipment in Asia Strategic Alliance with Becker Marine Systems 5

25 Strategic Alliance with Becker Marine Systems Strategic Alliance with Becker Marine Systems 1

26 Loading Of Mewis Duct ( Mencast) on 20/11/2010 Loading Of Mewis Duct ( Mencast) on 20/11/2010 2

27 Sterngear Services Expansion Sterngear Services Expansion 3

28 Sterngear Services Expansion Capability Expansion 4

29 Capability Expansion Capability Expansion 5

30 Capability Expansion Mud System for National Oilwell Varco Capability Expansion DUQM Drydock Gates 6

31 Capability Expansion MARINE & OFFSHORE PROJECTS DESIGN, FABRICATION & INSTALL 2 UNITS FLOATING GATES AT DUQM PORT, OMAN DRILLING DERRICK (Design, Fabricate & Install) 2011 Outlook Manufacturing Returning market confidence S$8.0 million order book as at 31 December 2010 Alliance with Becker could provide additional demand upside Services Growing momentum in 2011 New initiatives like fleet maintenance program provide steady source of demand MMRO Corporate Waterfront facility phased in from 2H 2011 Exploring other M&A (M&A of Top Great & Unidive group of companies) Success of Recon acquisition has put Mencast on people s radar as good company to work for 7

32 Investment Merits 6th year of sustained profit growth Well positioned to capture future growth opportunities Waterfront land is prized asset to begin contributing to MMRO in 2011 ROE of 21% in FY2010 Dividend yield of 3.0% MENCAST GROWTH OPPORTUNITY DIVIDEND Acquisition of local marine maintenance, repair and overhaul (Marine MRO) company, Top Great group 8

33 Acquisition of local marine inspections, repairs and overhaul (Marine MRO) company, Unidive group MENCAST HOLDINGS LTD. No. 7, Tuas View Circuit, Singapore THANK YOU! Investor Relations Contact Financial PR Pte Ltd Romil Singh / Kathy Zhang / romil@financialpr.com.sg 9