Transcript PPB GROUP BERHAD

PPB GROUP BERHAD
Press and Analyst Briefing
Unaudited FY2011 Results
6 March 2012
Disclaimer: The contents of this presentation
include materials which may be capable of
being
interpreted
as
forward-looking
statements. Such statements are merely
estimates and targets, based on circumstances
and reasonable assumptions which apply only
at the date of such statements. Accordingly, no
reliance should be placed on any forwardlooking statements, express or
implied,
contained in this presentation.
1
Agenda
Group Financial Highlights
Review of Major Operations
5-Year Financial Performance
Dividend Record
Share Performance
Prospects for 2012
2
Group
Financial
Highlights
3
Financial Results FOR THE YEAR ENDED 31 DEC 2011
Grains Trading, Flour & Feed Milling
Marketing , Distribution & Manufacturing
of Consumer Products
PPB Group
Operations
Film Exhibition & Distribution
Waste Management & Utilities
Property Investment & Development
Others
4
Financial Results FOR THE YEAR ENDED 31 DEC
(All figures in RM)
Revenue
Operating Expenses
PBT*
Profit for the Year
EPS
*Share of Wilmar’s Profit
#
2011
2010#
2.711 bil
2.566 bil
1.057 bil
1.013 bil
82.70 sen
0.790 bil
2.274 bil
2.031 bil
1.131 bil
1.070 bil
88.25 sen
0.678 bil
CHANGE
19%
26%
7%
5%
6%
17%
Financial results of continuing operations.
5
Financial Ratios FOR THE YEAR ENDED 31 DEC
2011
Profit for the Year (RM)
EPS
ROE Attributable to
Owners of the Parent
Net Assets Per Share Attributable
to Owners of the Parent
2010
1.013 bil 1.909 bil*
82.7 sen 159.0 sen
CHANGE
47%
48%
7.0%
14.2%
51%
RM11.86
RM11.20
6%
* Includes gain on sale of the sugar-related assets of RM841 million.
6
Segmental Information FOR THE YEAR ENDED 31 DEC 2011
57.01% Grains Trading, Flour & Feed Milling
TOTAL
REVENUE
RM2.711 bil
Marketing, Distribution & Manufacturing
13.08%
of Consumer Products
9.87% Film Exhibition & Distribution
5.38% Waste Management & Utilities
1.29% Property Investment & Development
13.37% Others*
*Others :Chemicals Trading & Manufacturing [4.37%], Livestock Farming [3.80%], Investment Income [0.81%], Packaging
[2.13%], Shipping [0.38%] & Others [1.88%]
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Segmental Information FOR THE YEAR ENDED 31 DEC 2011
58.82% Grains Trading, Flour & Feed Milling
TOTAL
SEGMENT
PROFITS
RM228 mil
8.45% Marketing, Distribution & Manufacturing
of Consumer Products
16.31% Film Exhibition & Distribution
4.26% Waste Management & Utilities
6.78% Property Investment & Development
5.38% Others*
*Others :Chemicals Trading & Manufacturing [0.51%], Livestock Farming [5.52%], Investment Income [4.56%], Packaging
[0.18%], Shipping [0.58%] & Others [-5.97%]
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Review
Of
Major
Operations
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Review of Major Operations
RM MILLION
1,800
FY 2010
FY 2011
30%
1,600
The significant increase in
revenue for 2011 is due to
higher grains trading volume
and flour sales.
1,400
400
200
135.0
13%
154.9
600
1,636.2
800
1,260.7
1,200
1,000
GRAINS TRADING, FLOUR AND
FEED MILLING
Operating profit was lower due
to lower margins as a result of
higher raw material costs.
0
Revenue
PBT
10
Review of Major Operations
2%
RM MILLION
400
FY 2010
FY 2011
350
300
375.3
200
369.5
250
150
21%
50
Revenue and operating
profit for 2011 improved
due to growth in sales and
better profit margins.
19.4
16.0
100
MARKETING, DISTRIBUTION &
MANUFACTURING OF
CONSUMER PRODUCTS
0
Revenue
PBT
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Review of Major Operations
RM MILLION
12%
FY 2010
FY 2011
300
250
283.3
150
252.6
200
100
15%
37.4
44.0
50
FILM EXHIBITION AND DISTRIBUTION
Revenue for 2011 increased due
to contribution from newly opened
GSC AEON Melaka, stronger
performance of existing cinemas
and higher revenue from film
distribution.
Operating profit declined due to
higher film rental rates and staff
costs for the cinema operations,
film acquisition costs.
0
Revenue
PBT
12
Review of Major Operations
RM MILLION
42%
FY 2010
160
FY 2011
140
ENVIRONMENTAL ENGINEERING,
WASTE MANAGEMENT &
UTILITIES
120
60
154.4
80
108.7
100
79%
Revenue and PBT improved
due to recognition of revenue
from major projects secured
during FY2011.
20
9.8
5.5
40
Revenue
PBT
13
Review of Major Operations
RM MILLION
FY 2010
12%
45
FY 2011
40
35
30
59%
15
37.1
20
41.9
25
5
15.6
38.1
10
0
Revenue
PROPERTY INVESTMENT &
DEVELOPMENT
Revenue for 2011 reduced due
to lower property sales as there
were no new projects launched
in FY2011.
PBT was lower due to a gain
on disposal of investment
properties of RM22 million in
FY2010.
PBT
14
Review of Major Operations
FY 2010
FY 2011
2%
RM MILLION
400
350
300
103.2
100
50
0
Revenue
PBT
12.3
150
88%
383.7
200
390.6
250
CHEMICALS, LIVESTOCK, INVESTMENTS &
OTHER OPERATIONS
Revenue was marginally lower due
to the loss in revenue from an
engineering services subsidiary that
was disposed of in FY2010 despite
higher revenue contribution from
livestock farming.
The lower PBT were mainly due to a
fair value adjustment in investments
in equities, lower profit from shipping
division and loss of profit contribution
from the disposed engineering
services subsidiary.
15
5-Year
Financial
Performance
16
5-Year PBT of PPB Group
2007
2008
2009
2010
1,057
1,129
1,732
1,401
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
763
RM Million
2011
Year
* Note : PBT for FY2010 excludes the gain of RM841 million from the disposal of the sugarrelated assets. If the profit is included, the PBT would be RM1.970 billion
17
Dividend
Record
18
Dividend Record
Dividend
Per Share
Gross Net
Net
Dividend
Yield
Group
Company
(%)
(%)
(%)
(sen)
(sen)
(RM Million)
2010
10
13
23
88
10
13
23
88
118.550
154.115
272.665
1,043.240
2009
73
73
2008
2007
85
30
68.88
22.15
Year
2011
-Interim
-Final*
*
Net
Dividend
Paid/payable
]
]
]
1.3
Payout Ratio
]
]
]
27.8
]
]
]
28.4
5.1
100.1
294.1
865.415
4.6
53.6
14.8
816.572
262.588
7.4
2.0
63.5
41.9
116.0
63.7
The Board recommended a final single tier dividend of 13 sen per share for the financial year
ended 31 December 2011 payable on 15 June 2012.
19
Share
Performance
20
Share Performance
PPB Share - Month End Closing Price (RM)
FBM KLCI
1,590.00
FBM KLCI (29.02.12) → 1,569.65
17.40
1,560.00
17.20
1,530.00
17.00
1,500.00
16.80
1,470.00
16.60
16.40
16.20
16.00
Jan - Dec 11
Closing Price (High)
Closing Price (Low)
Closing (31.12.11)
PPB
RM17.96
RM15.76
RM17.16
FBM KLCI
1,594.74
1,331.80
1,530.73
PPB (29.02.12)
→RM17.20
1,410.00
1,380.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
2011
1,440.00
2012
FBM KLCI
PPB Share - Month End Closing Price
(RM)
17.60
Prospects
for
2012
22
Prospects for 2012
The global economy in 2012 started off on an
uncertain footing, carrying over the slowing
consumer demand and the unresolved Eurozone
problems of 2011. The weakened global market
coupled with rising fuel costs, volatile commodity
markets and foreign exchange rates will present
challenges to the Group.
The Group’s management are actively monitoring
such challenges in order to implement appropriate
measures to facilitate growth and continuation of the
Group’s businesses.
23
Prospects for 2012
The Group’s operations are located in the ASEAN
countries and China, and it is anticipated that the
domestic consumption in these countries would
remain robust in 2012. The Group is optimistic that
PPB Group would be able to generate a satisfactory
set of results in 2012.
24
Questions
&
Answers
25